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»A, dubatch from London says: om‘fiothe rapid expansion of the prhl;-Naval Air Service. both with teapéift 1:0 personnel and material, the Admiralty has decided to place it un- der the direction of a flag officer, with the title of director of the air sern'ce. i_ Rear-Admiral C. L. Vaughan-Lee 5 been selected for this appointment. ommod‘ore M. F. Sufter, the present 'éctor of the air service, will be in arge of the material side of the al aeronautical work, with the . of superintendent of aircraft con- “In :0" doing. ‘it assumes that. as a mattér‘bf course, the arbitral deci- sion shall not be admitted to have the importance of a general decision on the permissibility 01‘ the converse under international law of: German aubmariné~ warfare.” BRITISH AIR SERVICE Q - UNDER FLAG OFFICER “If it should prove to be the case that it is impossible for the German and American Governments to reach a harmonious opinion on this point, the German Government would be prepared 'to submit the difference of opinion, as being a question of iter- national. law, to The Hague Tribunal foi‘ arbitration, pursuant to article 38 of The Hague Convention for the pacific settlement of iternational dis- putes. A» “The German Government is un- able, however, to acknowledge any obligation to grant indemnity in the matter, even if the commander should have been mistaken as to the aggres- sive intentions of the Arabic. “The German Government most } deeply regrets that lives were lost through the action of the commander. It particularly expresses this regret to the Government of the United States on account of the death of its citizens. 1 “Thi:conclusion is all the more ob- vious who had been fired upon at a great dislnce in the Irish Sea on Aug. léâ€"that ;, a few days beforeâ€"by a largemiger steamer, apparently beyonging to the British Royal Mail Steam Packet Company, which he had neither attacked nor stopped. “According to his instructions the mander was not allowed to attack fArabic without warning and with- t saving the lives unless the ship attempted to escape or offered resist- ance. He was forced, however, to con- clude from the attendant circum- stancts that the Arabic planned a vio- lent atack on the submarine. “On Aug. 19 a German submarine stoped the English steamer Dunsley about 16 nautical miles south of Kinsale, and was on the point of sink- ing the prize by gun fire after the crew had left the vessel. At this moment the commander saw a large steamer making directly towards him. This steamer, as-developed later, was the .Arabic. She\was recognized as an enemy; as she did not fly any flag and bore no neutral markings. “When she approached she altered her original course." but then again her original pointed dire rine. From A despatch from Berlin says: Gerâ€" many's note to the United States bear- ing on the sinking of the White Star Line Steamer Arabic, which was com- municated to the American Ambassa- dor, James W. Gerard, for transmis- sion to Washington, is in the form of a memorandum under date of Sept. 7, the text of which follows: Germany, in Note to U. S., Sees No REFWES W PAY NR WES WST A despatch from London says: Col. Repington, the Times' military expert, discussing the question, “What will the Germans do next?" declares that they find themselves in the state of perplexity a§ Napoleon did after his success at Vitopsk, the outcome of which was Moscow. The tenor of the article is’hopeful, if not optimistic. The writer does not attempt to guess Situation is Hopeful, No Matter \Vhat Campaign Enemy’s Staff Dacides Upon, Says Times Expert. ALLEEZS NEED NGT BE ANXHQUS OVER NEXT MQVE 0F GERMANS tior your temper. It is worth you than any one else. Obligation in Arabic iase. Thus Field Marshal von Hinden- burg and his commanders in Courland are still being denied their objective, the Dvina River, while von Mackensen and the Austrian generals at the other end of the line are engaged in opposâ€" ing the Russian offensive. In the Centre, on the other hand, Lieut.â€"Gen. von Eichhorn and Prince Leopold of Bavaria are pushing forward, and, ac- cording to the Berlin official report, have occupied Wolkowysk, an importâ€" ant railway junction immediately east of B-ialystock. It is for these railways that the Germans are now fighting, as when the Autumn rains turn a great part of the country into an impassable morass they will need every line of railway to keep their armies supplied with provisions and munitions. The Petrograd correspondent of the Daily Mail remarks that the Czar has pluckily undertaken the responsibility of the chief command at a time when the retirement from Grodno is still in progress under difficult conditions. The enemy at the same time is ad- vancing through the marsh region with the object of occupying the rail- way running north and south. He is using a ready-made railway line over the swampy ground, the rails attached to ties put down on narrow roadways which are sufficiently firm to allow a speed of ten miles an hour. cu ing practically every essential» sector of the front in Galicia, Poland and Russia proper, permits of .but one conclusionâ€"that the Czar’s. forces are no longer continuously retreating, but that they have made a determined stand virtually along the 'whole front, checking theonrush of the Austro- German armies almost everywhere and pushing a thus :far successful of- fensive in Galicia._ ‘ . Only at one point does: the official Russia war bulletin admit successon the part of the Teutonic adversary, namely in the district east of Vilko- mir, north-east of the captured fort: ress of Kovno, and not far from the Vilna - Dwinsk - Petrograd railroad. Here the Austro-Germans, with the aid of strong field and siege artillery, are advancing thus far without check, the statement declares. ‘ . As for the rest of the entire front, however, Petrograd, in summing up the situation, asserts the Austrians and Germans have been “dashing from one part of the line to the other in an'efi’ért to strike a decisive blow.” .â€" adsâ€"â€" my Luc lhubblall V1211 Ullluc,«\:uycl' - 41 NORWEGIAN SHIPS ‘ LOST SINCE WAR BEGAN A despatch from Washington says: m1, , (‘11,L, hr____,L__ “In. L_, .H, u “No days after the Germans en- tered the city more than 400 of the most prominent citizens who remain- ed were arrested without warning or interrogation and sent to Germany. About 700 families were deprived of their heads and of knowledge of their whereabouts. Arrests continued daily. The only known reason was that the names of the victims ap- peared on' a list compiled by inform- ers and sent to Germany months ago. A house to house search was made and every copper vessel was confiscat- ed. Metal was stripped from any places in which it had been left. Arti- cles of cotton and wool were gathered similarly from houses and shops. A despatch from Petrograd Russian torpedo-boat destroye seaplanes have been sent in pm German submarines operating the Crimean coast in the Bla‘ (ICCOI‘ A despatch from London says: Almost simultaneously with the an- nouncement that the Emperor has personally replaced Grand Duke Nicholas as commander of the Rus- sian forces, the fighting along the easern frontier, despite the beginning of the Autumn rains, has been re- sumed with the intensity which char- acterized it'throughout the Summer lon both wings in Courland, in the lnorth, and in Volhynia, Podolia and :East Galicia. In the south the Rus- ‘sians are making determined efforts 1to regain the initiative, while in the centre the Austro-Germans continue ; to increase their advantage. ENEMY SUBMARINES INVADE THE BLACK Conditions in City Described by a Refugee.~ A despatch from Petrograd says: A prominent Polish lawyer, who made his escape from Warsaw after its cap- ture by the Germans makes the fol- lowing statement: AUSTRALIAN MEMBERS BUY N0 GERMAN GOODS REJSSEANS FIGHT FOR [NEEIATHVE Conflict on Eastern Front is Resumed v “The situation is clear enough, and‘ no matter what the German decision‘ is, the allies can regard it with equa- nimity. We have not been so foolishly generous as our present enemy has“ been with initiative as a gift, and the question is not only what he proposes to do next, but what the allies proâ€" pose to do. Time will show.” says what the Germahsrwill decide, but; MANY ARRESTS IN WARSA‘V .g to an ofl'ic the War Ofl‘i With the Greatest Intensity. sent in pursuit of operating near in the Black Sea. is statemex *oyers am pursuit 0‘ says Spain. CUNARD STEAMER SUI‘ NEAR COAST A despzitch from Rome says: Three Armenian girls have been rescued from Turkish massacre. An American physician on his return to New Yo raid i‘k'fOl'L‘ his departure that t Turks gnun-tivaliy massacred 14.! Armenians in Trei‘nixund alone. \' they iOOIwi and burned the house Lcsnn ilm {mniiies were saved. News frrni the interior of Turkey is ziiipziiiingz. The in; are continuing systenmticaii the Mavsivnts Turkey of all Of the number of vessels flying the Norwegian flag lost 13 were destroyed by mines, 24 by torpedoes, three disâ€" appeared in the war zone, and one was crushed by a German warship. Still another Was taken as a prize to Hamburg. The losses have been so heavy to Norwegian shipping that war risksinâ€"i surance rates have been increased and restrictions imposed. Up to date the Norwegian War Risk Bureau has in- curred risks aggregating $2,000,000 aind collected in premiums but $17 820,000. SAYS 14,000 ARMENIANS MASSACRED BY TURKS A despatch from Washington says: The State Department has made pub- lic a report from the American Mini- ster at Christiania, Norway, disclos- ing that Norway has lost 41 vessels since the war began. Seventy-six sailors have perished. As for the rest of the entire front, however, Petrograd, in summing up the situation, asserts the Austrians and Germans have been “dashing from one part of the line to the pther in an'efi’ért to strike a decisive blow.” A despatch from London says: An exhaustive official statement issu- ed by the Russian War Office,.cover- ing practically every essential sector of the front in Galicia, Poland and Russia proper, permits of ,but one conclusionâ€"that the Czar’s forces are no longer continuously retreating, but that they have made a determined stand virtually along the 'whole front, checking theo'nrush of the Austro- German armies almost everywhere and pushing a thus far successful of- fensive in Galicia. ‘ Battles Continue Intense at Many N0 RELAXATION 0N EAST FRONT A despatch itish steam This interesting picture was received by The Daily News from Mr. Paul Harbord Collegiate Institute, wh o, as a. rosm'vist, returned to France tercd the hostilities as a, private soldier but for gallantry in service ed and he is now adjutant of the 91h Company 113th Regiment of In from Argonne he states that he is much interested in seeing copies paper every suecess. The picture shows the ruins of a hOuso 0n rue Points Along the Russian urcia HOUSE OF THE THIRTEENTH CENTURY J AFTER THE'BOMBARIMVIENT OF RHEIMS interesting picture was received by The Daily News from Mr. Paul Rochat, former language master of Harbord Collegiate Institute, who, as a reservist, returned to France at the outbreak of the war. He en. tered the hostilities as a private soldier but for gallantry in service he has been decorated and promot- ed and he is now adjutant of the 91h Company 113th Regiment of Infantry in the French army. Writim; from Argonne he states that he is much interested in seeing copies: of The Daily News and wishes this paper every success. The picture shows the ruins of a house on ruo dos Trois-‘Raisinete. Rheims, which was built in the 13th century and survived the ravgcs of time until a recent bombardment. Twenty~e :ch from Pa amer Alexar Steamship 70 miles fro a, Spain, a] respondent ande Line. A dosputch from Tifiis, TI‘ZUIS- Caucusin sags: AftL-r the exodus from the Vilayv‘t of ‘.';m the ('hx'ist? flvd to the plains of L'rumia - mas. on the north-west 5V L'rumiu, in Pprsizm inns~ were prmmriv’ but their flight \\‘ The present agents in T Northern P STOPPED CHRISTIANS Hopes that the submarine crisis had been safely passed, and that a break between Germany and the United States,had been avoided were displaced to-day by misgivings. Talk of the possibility of breaking diploâ€" matic relations was heard again, al- though this time it involved both the central powers, on the theory that Austria after having her Ambassador practically dismissed from the coun- try might stand with her ally in relaâ€" tions with the United States. Coupled with Germany’s disappointâ€" ing and unsatisfactory explanation of the sinking of the White Star liner Arabic, after Count von Bernstorfl’ had given assurances that full satis- faction would be given if it was es- tablished that a German submarine sank the ship, official Washington views the friendly relations with the Germanic powers strained more toâ€" ward the breaking point than ever be- fore. "A despatch from Washington says: President Wilson’s request for the re- call of the Austrian Ambassador, Dr. Constantin Theodor Dumba, has broadened into a situation involving Captain Franz von Papen, the mili- tary attache of the German Embassy; Alexander Nuber von Pereked, the Austrian Consul-General in New York, and possiblyfiCount von Berns- torfl", the German Ambassador. The official view is that the Ambassador, although technically involved, is not so seriously concerned as the military attache or the Consulâ€"General. It is not unlikely that both of the latter may be recalled or dismissed from the country. U. S. RELATEWS SGROW SERAHNED Two More Austrian Officials Are Likely to Be Sent Back to Vienna. LEAVING TABRIZ “Valiant army and fleet: To-day, your august supreme chief, his Ma- jesty the Emperor, places himself at your head. I bow before your heroism of' more than a year, and express to you my cordial, warm and sincere ap-f preciation. I believe steadfastly that' because the Emperor himsélf, to whom you have taken your oath, con- ducts you, you will display achieve: ments hitherto unknown. I believe that God from this day will bring to him final victory. 1mm NHCEOLAS ! ES SHPPLANTED The Grand Duke replaces the faâ€" mous Viceroy of the Caucasus, Count von Vorontzofi-Dashkofi'. Emperor Nicholas addressed to the Count a communication acknowledging the val~ ue of his labors, and stating that he yields to his request to be permitted to devote his energies to work for which his state .of health is more equal. The Emperor, therefore, re- lieves him of the post of Viceroy and attaches him to his personal staff. Thc decision of Emperor Nicholas to take chief command is regarded ' the best possible re- vmrt- propi‘osais. ' ' s (10- “Gen. Aide-de-Camp Nicholas.” The transference was made in con- nection with a general reorganization of such importance that it has stir- red the nation deeply. The text of the order issued by Grand Duke Nicholas transferring command of the Russian armies to the Emperor is forwarded "by the Petro- grad correspondent of the flaw" News Agency as follows: A despatch from London says: Grand Duke Nicholas has relinquished the command of the Russian military: forces and has been appointed Viceroy- of the Caucasus and Commander-in:f Chief of the Russian armies in the southern theatre of war. This an- nouncement from Petrograd follows‘ the action of Emperor Nicholas in‘ personally taking over the command of his forces. Famous Leader Relinquishes Com- mand of the Main Russian Forces. ner-