were defeated by
the army of Archduke Joseph Ferdinand, are retreating in a northern
and north-eastern direction, pursued by the Austrians who are pressing
to attack.

The Austrians on Monday captured the district of Cieszanow and the
heights north of Wysnica. Under pressure of our advance the enemy is
retreating on the Wieprz beyond Tarnogora. Our booty in this fighting
has increased to 41 officers and 11,500 men and 17 machine guns.

On the Bug River and in East Galicia the situation is unchanged.

On the Zlota Lipa and Dniester Rivers quiet prevails.

_German Army Headquarters wirelessed the following report from Berlin
to Sayville, N.Y., on July 7:_

During pursuit of the Russians to the Zlota Lipa River from July 3 to
July 5 the Germans captured 3,850 men. The number of prisoners made
south of Biale River has been increased to seven officers and about
800 men.

In Poland, south of the Vistula, the Germans stormed Height 95, to the
east of Dolowatka and south of Borzymow. The Russian losses were very
considerable. Ten machine guns, one revolver gun and a quantity of
rifles were taken.

More to the northward, near the Vistula, a Russian charge was
repulsed.

The Czernowitz, Bukowina, correspondent of the Zeitung am Mittag,
says:

"The scarcity of rifles with the Russians is growing greater daily.
The reserves are unarmed until they begin the attack, and then they
take rifles from their fallen comrades. The Russian artillery fire,
however, has grown more active."

DEFEAT AT KRASNIK

_From Austrian Army Headquarters in Galicia, July 11, came the
following:_

The relative subsidence of activity on the part of the Teutonic allies
during the last week may be explained by the fact that the goal set
for the Lemberg campaign already has been attained. This was the
recapture of the city and the securing of strong defensive positions
to the eastward and northward. These positions have now been secured
along the line of the Zlota Lipa and Bug Rivers and the ridge to the
northward of Krasnik.

The Russians attempted a counter-offensive from Lubin against the
Austro-German positions north of Krasnik, bringing up heavy
reinforcements for this purpose. Owing to this movement the Austrian
troops, which had rushed beyond the positions originally selected,
withdrew to the ridge, where they have been successfully resisting all
Russian attacks. They feel secure in their present positions, and it
is believed here t