ON THE SEAS.

ARMED MERCHANT SHIPS. UNITED STATES POLICY. RIGHT OF DEFENSIVE ARMAMENT CONCEDED. (By Cable.—Free* Awociation.—CopjTi'lit.) WASHINGTON, February 16. President Wilson's Cabinet has decided that the existing principles of international law regarding merchant ships must stand, unless the Allies accept Mr Lansing's recent proposals. The State Department recognises that the existing law cannot be changed without the consent of all the Powers, but that it may instruct the port authorities to refuse clearances unless the ships are only armed purely for defensive purposes. It- is expected that President Wilson will not press Congress to prevent Americans sailing in ships belonging to belligerents. LONDON, February 16. Renter's Washington correspondent states that. America concedes the Entente's right to arm merchantmen defensively, and will disapprove of the German intention to torpedo such vessels on sight. The American memorandum referred to in these messages is the Note which was issued at the end of January to the belligerents by Mr Lansing, Secretary of State, notifying the respective Powers that unless they subscribe to tho following principle!, armed merchantmen may. be denied entry to American ports, except on the conditions applying to warships. * First:—A belligerent merchantman has a right to rely on the rule 6 of international law and humanity. Second:—(Merchant ships of any nationality are not subject to . attack without warning. Third: —A belligerent merchant ship should promptly obey orders to stop. Fourth: —A merchant ship should not be fired on unless she tries to resist, and even then the attack should cease directly her flight or resistance ceases. Fifth: —The sinking of a merchant ship is justified only if it is impossible to supply a prize crew. In that case, the passengers and crew must be removed to safety. Mr Lansing added that in view of the extensive use of submarines, which ■armed merchant ships wore able to attack, there was grave doubt if it was legal for merchant ships to carry armament. Therefore he asked the Powers to. make the above declaration on condition that their enemies made similar declarations.

IRRESOLUTE IN ACTION

PRESIDENT WILSON'S POLICY

CONDEMNED.

•'Received February 17th. 9.50 p.m.) NEW YORK, February 16.

At the Republican State Convention Mr Elihu Root denounced the Wilson Administration for failing to protest against the killing of Americans either in Mexico or upon the ocean. American diplomacy, ho said, had entirely lost its authority. The United States had become brave in words but irresolute in action. When it failed to tell the truth about Belgium the United States lost its opportunity of taking the leadership of the world in a moral sense.

The Hon. /Elihu Root, Senator for Now York, is a member of the Permanent Court of Arbitration at The Hague,''and president of the American Society of International Law. He was Secretary of State of the United States in 1905.

IN THE NORTH SEA

GERMAN MYTH EXPLODED.

BRITISH FLEET NOT "HIDING."

LONDON, February 16. A German wireless message, 'quoting the Danish newspaper "Politikeri," states that a Norwegian ship, during the week, met a large . British fleet within the zone between the Dogger Bank and th e Norwegian coast. The fleet consisted chiefly of squadrons of light cruisers. Norwegian vessels also met English cruisers in the Atlantic, which were doubtless chasing the Howe.

Th© wireless message now admits that the Arabis, which was sunk by German destroyers, was not a cruiser, but a special vessel constructed for the mining and air defence services. She had a crew of 78 men and a speed of sixteen knots.

This sudden conversion is amusing, as a few hours earlier the wireless messages had been claiming that a second cruiser had been tomedoed. This claim was based on the fact of the Brj+'s Admiralty's admission that a minesweeper had been sunk. The wireless message further states that the surgeon and three of the crew of the Arabis died after rescue from the effects of their long immersion in the water.

OUTRAGES IN AMERICA

TWO SHIPS DESTROYED,

FIRE IN TORONTO

NEW YORK, February 16. The steamships Bolton Castle and Pacific were destroyed by a disastrous fire. Two deaths are reported. Incendiarism is suspected, as the steamers were loading munitions for Vladivostok. The Bolton Castle was a steamer of 5826 tons gross register, built in 1914 and owned by the Lancashire Shipping Co., Ltd. (Messrs J. Chambers and C0.),-of Liverpool. The Pacific. was a steamer of 4210 tons gross register, built in 1914 and owned by Messrs W. H. Cockerline and Co.. of Hull. There is also a steamer of the same name of 5399 tons gross register, owned by the Emery S.S. Co. of New York. OTTAWA, February 16. The American Club buildings at Toronto were destroyed by an explosion and fire! The club was largely used to recruit Americans to serve in the Canadian forces. One man was killed and two others injured.

IN THE ADRIATIC. ENEMY SUBMARINES SUNKJ REPORTED FRENCH SUCCESS. (Received February 17th. 10.55 p m) PARTS, February 17. ' M. Marcel Lutin, writing jn the ''Echo de Paris," says there is every reason to believe that French warships in the Adriatic during the last three days have sunk two enemy submarines, and perhaps three.