The Birmingham age-herald., 1915-10-06
Imperial Government Dis avOws Action and Agrees to Pay Indemnity to Fam lilies of Those Lost
EXPRESSES REGRET AT LOSS OF LIFE TO
 CITIZENS OF U. s.
Latest Communication Prac- tically Means That All Trouble With Germany on Submarines Is Settled

| Washington, October 5.--Germany has acceded to the American demands for settlement of the Arabic case. The imperial government, through it's ambassador. Count von Bernstorff, disavows the sinking of the vessel. announces that it has so notified the submarine commander who made the attack. expresses regret for the loss of American lives, and agrees to pay an indemnity to the families of Amer jeans lost.
 Official Washington was both grati- fled and relieved by the diplomatic victory. The communication deliv- cred to Secretary Lansing today by the ambassador pursuant to general instructions from the government spread absolute confidence that there would be no more submarine eontro- versies between the United States and Germany, for the document re- veals that stringent orders have been given to submarine commanders to prevent recurrence of such incidents as the Arabic.
 Since this case embraces the prln- ciples for which President Wilson con- tended in his notes following the tor pedoing of the Lusitania and Faaba concessions made by Germany to the American viewpoint were generally re- garded tonight as paving the way for amoable settlement of all the cases which have threatened severance of diplomatic relations between the two countries.
 Count von Bernstorfr left here tc night happy over the results of h work. expressing the confident ho that relations between Germany u the United States would continue
 improve.
 With settlement of the Arabic co troversy the dispatch to Sreat Brit lain of the long delayed Amer ican note on interference with trade Is expected within a few days. President Wilson has refused to send this Vommunica- ton while the issues with Germany were pending because the Berlin gov ernment had, through It's notes, given the impression that on the action which the United States took with one set of beligerents depended it's own conformity to international law As the issues with Germany appear now to be adjusting themselves. the President, it is known, feels free to press Great Britain for modification of the orders in council and restric- tons of American trade
 Submits Letter
 It was not until the German ann t.t I.4t sl 1 o'clock today that the change in the | relations between Germany and the United States became definite Un- til that hour the suggestions which Count Von Bernstorff had made wera jconsidered unsuccessful In New York last Saturday the ambassador had sub l mitted a draft of letter on the Ara bic case but since It did not include admission of liability and agreement to pay indemnity. It's terms were not l acceptable to either President Wilson or Secretary Lansing Today he came to Washington at the request of MT. Lansing In a few minutes he learned of the American governments obJec- tons and in return gave oral as- surances that these would be promptly overcome Returning to the embassy the ambassador redraftod the letter originally delivered in New York and sent 1t by messenger to the state de- partment Secretary Lansing carried
  erward announced it's text which fol- lows:
 Text of Letter
 My Dear MT. Secretary:
 Prompted by the desire to reach a satisfactory agreement with regard to the Arabic incident my government has given me the following instruc- tions:
 The orders issued by His Majesty. the Emperor, to the commanders of the German submarines, of which noti- ed you on a previous occasion, has been made so stringent that the re- currence of incidents similar to the | Arabic case is considered out of the question.
 According to the report of Com msnder Schneider of the submarine which sank the Arabic and hts affidavit as well as those of his men. Com mander Schneider was convinced that tho Arabic intended to ram the sub- marina
 ..On the other hand. the imperial gov ernment does not doubt the good faith of the affidavit of the British ofTi- cers of the Arabic, according to wheth- CT the Arabic did not intend to ram the submarine. The attack of the subma- rine was undertaken against the word issued to the commander. The im- perial government regrets and dis avows this act and has notified Com mander Schneider accordingly.
 Under these circumstances my gov ernment Is prepared to pay an indem- l nifty for American lives which, to it's deep regret. have been lost on the Arabic. I am authorized to negotiate with you about the amount of this inc demnity.
 q remain my dear Mir. Lansing. yours very sincerely"
 Il The promptness with which Count Bernstorff altered the original draft of the letter demonstrated that he had been empowered to negotiate com plete settlement of the case and 1t was |, assumed that he naturally did not fin- ally accede until the American govern ment made known its unalterable de- { termination not to relinquish any of Ito demands.
 tl Secretary Lansing made no comment on the ambassadors letter except to . remark that 1t spoke for itself He Twas much pleased over the conclusion VI of tho case. because since the sinking nI of the Arabic be inaugurated thefideA
 (Continuea en Page Tenl