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About The news-review. (Roseburg, Or.) 1948-1994 | View Entire Issue (Dec. 2, 1961)
University Cf Oregon Ore: 001 P ovieis Clash Over IPeiping's For Seat lid U.N. ii RUN ON BANK When news was announced that two officers of the Liberty Sav ings ond Loon Association in Whiting, Ind. were arested on charges of embezzling more than $1 million from the association, worried depositors staged a run on the savings and loan office Friday. (UPI Telephoto). $1 Million Embezzlement Starts Depositor Run On Indiana Firm WHITING, Ind. (AP) The ; liberty Savings & Loan Associa- Uon is known as a family affair, Over the years at least five members of the Chilla family have served it. Joseph J. Chilla Sr., longtime manager and chair-1 man of the board, died in 1958. 1 His son, Joseph Jr., 53, became chairman. A younger son, Bene dict A., 45, was secretary-treasurer. Friday, the brothers were ar rested by the FBI, accused of em bezzling "at least SI million." Allan Gillies, the agent in charge of the Indianpolis FBI of fice, said the brothers had kept a secret ledger since 1939. stealing from savings accounts that were never entered in the association's regular books. The system was simple, he said. They would try to spot savers who were not likely to disturb their accounts, enter their deposits in the secret ledger and calculate regular interest. ' If one of those depositors asked for his money, Gillies said, the brothers would pay off in full from other bank funds, then transfer another saver to the hidden ledger. The scheme, unsuspected for 21 years, was uncovered during routine audit by atate and icderal j ""ay aY e ?na WW examiners !at the request pi the Justice De- News of the arrests spread partment. The 12-count charge ac swiftly through this industrial city cused the party of failing to regis of less than 10.000 in the heat ofjter by Nov. 20 as required by the Indiana's Calumet area. Scores of Subversive Activities Control Act of feared depositors lined up for! 1950. The act was upheld by the their savings. They were assured U.S. Supreme Court earlier this their money was safe, protected year after a 10-year court battle by the Federal Savings & Loan j between the party and the govern Insurance Corp. ment. Gillies said his agents, federal I in announcing the action, Atty. examiners and representatives of, Gen. Robert F. Kennedy said the the Indiana Department of Fi-!nartv aDoarentlv has been beat- nancial institutions were gather-ling Union Representation At Pacqua Undecided Fmnlncaa at the Parana and Sierra divisions of Forrest Indus- j tries, Inc., failed to give any tin ion a clear majority in an NLRB election conducted Thursday to de termine a collective bargaining agent, it was disclosed today. Lnion officials said as result of the voting a runoff election will be held between International j Woodworkers of America and Lum- ber & Sawmill Workers Local 2949 The vole totals were: IWA. 27;! Lumoer k Sawmill. 25; Inde-.ted pendent Particle Board Employes, 16. and "no union," none. The two plants voted as a single unit, but a 51 per cent majority of all votes cast was required to decide a win ner. Plant eitiDloves are presently I represented bv Independent Par- ty during much of its attempt to tide Board Employes. A date for, have the security act held uncon the ri-noff ballot will be announced ' stitutional. by the National Labor Relations Ab; could not be reached for Board. I comment. Lonely Peter Pelican Gets New Bride In Greece Today vvrnvns ISLAND. C.reere Frulav nieht. Boat whistles tooted (Apt Peter the pelican, Myconos' lonely pet. took a bride today. . Two American immigrants male Alphonse and female Omega were brought here lo give reier companionship. The islanders im-i ported two birds because they were noi sure oi reier s sex. .Now they know. Peter immedi- ately took a shine to Omega. Alphonse and Omega arrived The Weather AIRPORT RECORDS P.rtl. rltorlv rMhf and Sun. div with mornine foe Sunday. Cooler tonight. Highest temp, last 54 hours 47 J? Highest temp, any Dec. (SI) (551 " 51 " ' ,j - Lowest temp, any Dec, Precip. last 34 hours Precip. from Dec. t Prtcip. from Sept. I - li.n Excess from Sept. I - - Sunset tonight, 4.3 p.m. Sunrise tomorrow, 7:21 a.m. i ing evidence for presentation to a federal grand jury in Hammond next month. The brothers waived a prelim inary hearing. Benedict Chilla was charged with making a false en- try in his October report to the association's board of directors. Gillies said he listed the savings accounts total at $6,603,104, fail ing to mention the hidden $1 mol liun. Joseph Chilla was charged with embezzling a $3,000 loan payment in September. Church. They were released on $5,000 1 Two sisters, tellers at the asso bond each. I elation, were not charged. Federal Grand Jury Indicts American Communist Party WASHINGTON (AP) The Communist party of the United States has been indicted for fail ing to register as an agent of the Soviet union. Conviction could mean hundreds of thousands of dollars in fines. The indictment was returned a hasty retreat underground in anticipation of the indictment. Future indictments against par ty officers and party members also are possible. The law re quired party officials to register Nov. 30. which they did not do. Party members are supposed to I register by Dec. If convicted, the Communist par ty could be fined $10,000 for each day of nonregistration. Party of ficers could be fined $10,000 a day and sentenced to five years in prison for each day. And if party members ignore the December deadline, they could be subject to similar fines and prison sentences. There are believed to be about 10.000 party members in the Uni- States at the present time. There was no comment from Communist party leaders. The Justice Department said at torneys John J. Abt of New York and Joseph Forer of Washington would De servea wun me muici- ments. They represented the par- church bells rang and the people jot .Myconos Dtinnca ine iignis in i their homes. ! Guitarists strummed from a launcn uiai puuea aiongsioe mei steamer bringing the pelicans from Louisiana for their rendez-1 j vous wun reier. As the two immigrants were carried onto the dock, wedding in - vitalions were passed out by offi - 'cials of a Houston, Tex., mining company with operations here. The company had passed the !word about Peter s lonely life. ,(;ov. J.mmi. Davis of Louisiana sent Alphonse and Omega to Ath- en by jrt as a gift, leaving it to1 Peier to induate whether be ..J - 1 I J a a mock wedding was about to slart, Peter waltied around Al - T . I ....... . V. , . phon-e and Omega, pre feathers. Alphonse paid tion. but Omega obviou no atten- lously loved it. So she and Peter were wed.; ( hurch bells ran, the Wanders danced and the wine flowed freely m toats to a happy future for all three pelicans. I 61 7 fl Dr. Peter Stecy, a member of the savings association's board, said the arrests took the directors by surprise. They never had been suspicious. The Chillas are married. Both live in unpretertious homes in neighboring Hammond. Benedict has a teen-age son. Joseph has a teen-age daughter and a 22-year-old son. Their pastor, the Rev. Edward Homco, said the families were ac- jtive in St. John's Roman Catholic Forer said at his home in Silver Spring, Md., "It was very sweet of them" to hand down the indict ments, but that he had not been served with a copy. He said, "The indictment was no surprise. I ex pect we (he and Abt) will con tinue to represent the party. Intention Declared The Justice Department received a letter Nov. 10 declaring the par ty's intention of not registering. The letter claimed compliance would mean self-incrimination and would expose registrants to prose cution under the Smith Act, which makes it a crime to belong to a party advocating violent over throw of the U.S. government. Kennedy said in his statement that there have been sharp chang es in party organization in recent weeks. He said the numDer ot na tional officers has been reduced to three and that dues payments have been eliminated in some areas. Red Leader Faces Dual Trouble Now YONKERS. NY. (AP) Com munist leader Gua Hall, already in trouble with the federal gov ernment, also is in hot water with local officials. He was halted by police Friday and charged with three motor vehicle violations driving across a white line, failing to have a New York driving license and driving with improper registra tion. Hall, a Yonken resident, was ordered to appear in court Dec. 7. The 1962 fawn-colored conver toble that he was driving was im pounded. As general secretary of the Communist party in the United States. Hall had been ordered by the Justice Department to regis ter with other Communist lead ers by Wednesday midnight as an agent of the Soviet Union. They refused. The penalty for each day of noncompliance is five years in prison and a $10,000 fine New Prexy Picked , m a . T..-I-... Q JUCCeCfl I UllCl i jALEM (AP) Claude Tate i R(,dmondi w ntmtd president of OTtf rr Association as ,k. - a . .t.- yention. ,,,j. ni,!,, twi.. LTa'e upd Richard Turley, 'Roseburg. who was not a candi- Harold Clarno, Myrtle Point, was elected vice president, trie I Knhor OrndAI fit nr lielnr Peterson. The Dalles, were i named directors A I. V. adopted in apportioning racing funds to fairs and other shows in the stste was approved by the stood. A uniform method of auditing fund received from parimutuel i betting was also discussed. 1 Established! 873 10 Pogei Reds Reject Kennedy Plan For Autobahn BERLIX (AP)-East Germany today published a rejection of!"1 .Marxism, admitted publicly Y resident Kennedy I suggestion for an international administra- tion of the 110-mile highway life- line between this city and Uie West. The rejection came from the East Germany's top spokesman Walter Ulbricht, chief of state and j "We must all study the expert Communist party leader, who ences in building up the world's spoke Friday night at a party dis-j first Communist society," he said, trict meeting in East Berlin. "Socialism is a world reality to- An account of what he said was carried today by ADN, official East German news agency. in hi interview with Alexel Ad- znuDei, eauor oi tne soviet paper lzvestia, Kennedy suggested a key point in any future negotiations with the Soviets should deal with an international administration of the autobahn to guarantee free movement of goods and persons. Ine autobahn between West tier- many and Berlin belongs to East Germany, said Ulbricht. He added that East Germany ia not a colon ial area of the Western powers. especially not of the United States. if the Western powers thought they could prepare international control by sending U.S. troops on training missions along the high way, "our answer is clear," said Ulbricht. Neues Deutschland. the central organ of the East German re gime, sharply criticized move ment of U.S. troops along the superhighway through East Ger many. The U.S. Armv announced Fri day that two battle erouDa of an esumaiea d.uuu men wouia move along the autobahn soon replac ing garrison troops in this divided city, western powers recognize only Soviet control over the auto bahn and insist on freedom of passage. "They (the Americans) should realize that the result fof .Uwi troop movements) will not be a documentation of American strength but merely another proof or tne necessity to solve the West Berlin problem peacefully," Neues Deutschland said. "The autobahn is property of the Ger man Democratic Republic and nobody can do on it what he wants. Soviet officials halted one US convoy on the autobahn for more than an hour Friday after finding a Haw in their travel documents. The convoy was allowed to pro ceed after a U.S. official straight ened out the papers. Beaverton Club Nixes Challenge Beaverton's football team wasn't the only "club" unpre pared for the challenge of the state A-l football championship game last week. As reported earlier, the Roseburg Junior Chamber of Commerce challenged the Beaverton Jaycecs to provide a trophy to Roseburg's Indians if they won the game. Hie agreement provided that local Jaycees would give Beaverton a trophy if its football team won. After weighing the challenge for a day, a Beaverton Jay cee called local Jaycee pres ident, Les Hazen, to explain that Beaverton couldn't reach a decision on the challenge. Blast Victim Back In Business Today Christmas will have a happy Roseburg but especially fir Al1ta on or at, !!,Tn'llroV? Une oI the Albanian r .. r t tntinn Or tartintf Monday, tnev llorier ' fviivkpnrlall Kuykendall. who for IS years 1 may be left at the Red tmss of prior to Roseburg'. tragic blast, of : J " Aug. 7, 19."9, sold bicycles in his shop on SE Washington Ave., is back in business. And his customers have been waiting for him. he told The News Review this morning. His business operations were In terrupted for 27 months after the blast destroyed his business and home and sent him to the hos pital. Now. with a new shop at 1231 SE Stephens St., he is again offering I home burned was a two the bicycle line for his old and tory flirn, ,iructure, owned by i ,j v ,j One man told me he waited a whole year for me to open, to buy a bicycle," Kuykendall ssid. I For tbe past few days, he has , been coming to his shop a few I hours a day to get back into swing of things. I "Now I'm going full blast," he said. Besides selling bicycles, Kuyken 'dall is servicing and repairing all kinds of bicycles and tricycles. : He now resides at the Garden Valley Apartments, He credits the Roeburf Kiwan- is Club and Howard Petersen in helping him to reopen his business. I tKiwanis provided capital funds. I ROSEBURG, OREGON SATURDAY, DECEMBER 2, 1961 Castro Admits Leading Cuba Down Road To Communism HAVANA (AP) Fidel Castro, i proc aiming, l believe absolutely t " w" -"a aown tne road to communism. I I Marxist-Leninist and " ue one unui me a ay i aie. i the Cuban prime minister de- clared in a midnight television ! speech. 1 dav as the force defeating im- erialism." "The world is on the road lo ward communism." ha aMH i No Need For Worry Castro jokingly added that if there was any anti-Communist I listening to him "he does not j need worry because there will be ' Dominican Chief Charges Castro Plans Invasion SANTO DOMINGO, Dominican Republic (AP) Dominican armed forces chief Gen. Pedro Rodriguez Eehavarria claims that Fidel Castro's regime is training an invasion force for an attack on this island nation less than 200 miles from Cuban shores. Rodriguez Eehavarria, the No. 2 man in the government of President Joaquin Balaguer, told newsmen Friday night he had re ports that between 1,800 and 2.000 Central Americans were under going invasion training at three camps in Cuba's Sierra Maestra - MounUins, Castro's stronghold of revolution days, He charged that the general strikes that have gripped the na tion since Tuesday may have , . . - - i ?Z" "I " keep Dominican troops pinned down in the capital. The strikes, centered in this capital, show signs of losing their steam but Rodriguez Eehavarria said military reinforcements have been shifted to northern Domini can areas in anticipation of trou ble. "We are not fools," he de clared. "We are ready and keep ing ourselves mobile." The military leader said the armed forces have no plans at present to break up the strikes aimed at toppling the Balaguer regime. But he warned tnat if "the security of the state -ther (is threatened), that's a thing." He implied that he leu ine strikes would die a natural death once the strikers are convince", it is a political matter." Some shops reopened in tne capital and automobile traffic which came to a virtual stand still in the first days of the strike appeared to be about half normal. Clothing, Bedding Needed By Family Clothing and bedding, especial ly, are urgently needed for a burn ed-out Oakland family, reports the Red Cross office in Roseburg. The home, occupied by Eldon (Shorty) Dixon, two sons, age 12 and 7. and two daughters, ages 10 and 5, and a housekeeper, was destroyed, along with all their pos sessions Wednesday morning. Clothing and other donations,.... I'nmnni.i, r,,r o,t;n .,,. may be left at the Roseburg fire . , - - r I Ave. The Red Cross phone num ber is 3-3255. but the office is closed Saturday and Sunday. Dixon has long been associated wilh Red Cross work, himself. He has been an instructor in first aid in Oakland. The family is reported slaying at the Thomas Hotel in Oakland. The Oakland Community Presby terian Church gave immediate aid. to the family, !td Kendall. HURRY 7 I Only 19 More f DAYS TO SHOPj no communism (in Cuba) before 30 years." Castro's statements were in snarp contrast to declarations that "ours is not a Communist , revolution' made six months alt- er he seized power from dictator movements." Castro said. Fulgencio Batista Jan. 1, 1959. Favors Collectivism Apparently in reference to his Castro asserted he favored col-anti-Communist statements, Cas leclive leadership for Cuba under tro said Friday night that until the new party instead of "per a few years ago he was "biased sonality rule," a role he presently against communism because of holds. imperialist propaganda." He said j "It would be absurd for a single the change in his political think- man to make government deci ing began after he seized power. 1 sions," Castro said, adopting the i-asiru praiseo inin lor "ac- veloping Marx' and Engel's the ories and putting them into prac tice. -Marxism or scientific social ism has become the revolutionary movement of the working class," he said. Strongest Admission - Castro a assertion that he was confirmed Marxist was one of strongest public admissions that he had been converted to-1 ward the Communist line. He had implied as much bv labeling Cuba a socialist state in speecn last May uay. The United States then declared for the first time that Castro was a full member of the Communist camp. Castro, who ruled out elections in his May Day speech, declared Friday night that he was forming a single party that would unify all groups in his regime into a "strong and disciplined organiza tion. The Integrated Revolutionarv nroaniyntinn amlirapina nnllfi. cal mUilary , ,COnomi c. labor and Banks Get Authority To Up Interest Rate WASHINGTON (AP) Tlie na uo I have been granted federal Dermis- sion to oner savers 4 per cent in terest on $93 billion of deposits starting Jan. I. Pre5!!it limit 3. ?" S?nllmove thera broal because of in- and nas been in effect for five years. The higher maximum was au thorized Friday night by the Fed eral Reserve Board and Federal Deposit Insuranca Corp. so that banks can become more competi tive with savings and loan asso- Reedsport School Hearing Scheduled A nilh1i Thattr inr milt Kak ttnrt ducted by the Douglas County Com- School Districts. The hearing will I months can earn up to 3.5 per take place at Keedsport Union cent lnstcal of 3 per cent. There High School at 8 p.m. Dec. 13. wa no nang in the maximum Purpose of the hearing is to dis- ralc o deposit ' shorter dura cuss with the committee the ques-1": Tne ratc ar8 21 Per "t for tion of modifying the plan for the 90 dT to six months, and 1 per formation of a single administra tive district from the present die tricts of Gardiner, Ash Valley and Reedsport. Modification would mean the irpi wnulH ho Innerf n nrauirfa that three administrative schoool board members shall reside in Gardiner, three In Reedsnort and one in Ash Valley The original proposal of the com mittee provided for one member each from the three districts, wilh four to be elected at large. Red Raps Red China VIENNA, Austria (AP) - Bul garian Communist party chief To- Hnr yhii'lrnv ha aicailu,! fh. rhi. port t0 the "anti-Leninist and ad- Adlai Stevenson Is Considering Illinois Race For U.S.1 Senate WASHINGTON (AP) - Ambassa - dor Adlai Stevenson said he dis- cussed with President Kennedy to- dy whether he should consider a suggestion from Mayor Richard J. Daley of Chicago about run ning for senator from Illinois. Stevenson indicated to newsmen at the White House that he la con sidering the race and that he will ey's suggestion was talked over make a final decision before the , with Kennedy, he said it was dis end of December. cussed between him and the Prrs- If he enters the race It would be for the seat now held by Re - publican Senator Everett Dirk - sen. the minority leader. Mayor Daley," Stevenson said, ' i-krd me it I sm interested inies in Illinois. running." He said he had talked! lo Daley on the telephone Thurs - day and the mayor had put the question at that time. Stevenson, the former Illinois governor and two-time Democrat- i ic presidential nominee, sa-d he had not had time to consider , Dairy s inquiry hu,h, he con 283-61 10c Per Copy I social groups, forms the founda- tion for the coming one-oartv 'system. The parly will be called "the united parly of Cuba a 80- cialist revolution." "There cannot be three or four line oi ine recent zznd Commu nist party conference, which de nounced the so-called "cult of the personality." The Soviet move led to the widespread de-Stalinization program. In a passing reference to his personal position in the new po litical structure, Castro declared, i nave never wanted to be a Caesar. In the five-hour speech he de- I clared his revolution has taken "the onlv honest mart the rnari of a socialist and anti-imperialist 1 revolution Pentagon Draws Blast Castro again charged that the "U.S. Pentagon is training guer rilla forces" to stave off threats of what he called Cuban-style rev - olutions in other Latin-American I !, warnea mai 10 admit countries. I tne Reds would have only one "But," he added, "in the face meanin": That tm United Na of the revolutionary fight of thei"?"5, had knuckled under to Pel people there are no remedies ex- mnR P'an t0 conquer Formosa cept the disappearance of thelant' "overthrow and abolish the conditions of exploitation" w hich k- -.i.J ... lna.li.f t unrest and discontent. - lciationa. U'hiYh cennrallv have n,Vl higher rates. Another motive for the move W9 In HMIiriD. fnHinnnHa ..I ..ivu.asc .... Lllivi 3 nf hor- 4n L..n r..nrl- - J ; in the United States rather than terest rate competition. This would help the U.S. balance of payments No bank will have to pay higher interest rates as a result of the action. They merely have permis sion to do so. "Experience suggests that any moves toward higher rates are likely to be gradual," the Reserve Board said. Many banks have yet to adopt the old 3 per cent maxi mum. The 4 per cent ceiling will ap ply to time and savings deposits i Dank for vear or longer. I Funds deposited for 6 to 12 cent for up to 90 days. The maximum must not be ex ceeded by any commercial banks covered by I'DIC insurance. This includes all exeep. about 300 very Small institutions , "i16 banks have been limited 10 3 P" cent interest rate, many , savings and loan associations have offered 4 per cent and even 5 per cent. With their rate advantage, sav ings and loan associations have in creased their ileposits from $22.8 billion in 1 9.'3 to a current level of about $68 billion. Banks attract ed deposits at a much slower rate, the increase for them moving from $U) 4 billion to $M billion. Congress authorized the Reserve Board and FDIC to fix maximum permissible rates in 1933. The lev els were changed only twice be fore under that authority. l ceded, amounted to that he run. a proposal; "I suppose It comes to the same , thing," he said. As to what his reply win ue, aievenson ueciarrn; "1 want to be guided by the best interests of my party and the administration." Asked specifically whether Dal ident "casually." but he did not , think he should, say what the , President advised him to do. him In rin Dirksen, who will be U in Feb- nary, has been making speech- Dirksen served In the House ,from 1932 until 1930 and volun- tarilv retired then because of dif- '. ' . .... ificul'ty with his eyesight. He was! lnc " ,llp? ,,ow- me- first elected to the Senate inUIT,1 Phr,s"- ' lve had some j 19.'i0 and re elected in 1956. i calls from the mayor of Chicago ! Stevenson came here from the United Nations, where he is U S. representative with Cabinet status UNITED NATION'S. N Y. (AP) j The United States and the Sc I viet Union have decided to gam ble their prestige on the outcome j of Peiping'a bid for a U.N. seat. This was made clear Friday as I the two big powers clashed head ' on in the opening round of the I China debate. Both demonstrated they were determined to fight ev ery step on the issue of whether the Formosan government of Chiang Kai-shek or the Commu nists get the seat. U.S. Ambassador Adlal E Ste venson warned delegates that "the whole future of the United Nations is at stake" with the China representation question. The United States has managed to keep the matter shelved for 10 years. "If anyone still has any illu sions about the Communists' qual ifications for membership in this respect, let him be reminded of the use of force by the Chinese Communists in their border dis putes with India," Stevenson de clared in a noholdsbarred speech. "In its present mood," Steven son said of the Red Chinese re gime, "it is a massive and brutal threat to man's struggle to better his lot." "Its gigantic power, its reck less ambition, and it unconcern for human values," he said, "make it the major world prob lem. - In a bid to win over some of Peiping'a supporters, Stevenson accused the Communist Chinese of operating camps for young guerrillas in Asia, Africa and Latin America so they could touch off revolutions in their 1 l,0"'e co"'ies. I 'nuepe ndent government of the Reouhlip nf China' The Soviet Union's swift retort to the American charges against the Chinese Reds made plain the nremun nas decided to go much further than token support for the Communists bid. Soviet Deputy Foreign Minister Valerian A. Zorin accused Ste venson of trying to make the assembly believe that the Peiping government had aplit with Hoa- cow. Any effort on the nart nf ih United States or any other power . . . - I . 10 CSSC ShadOWS Or fVIWCltAn - r.c,a.tion, wilh, the People's Repiib. lie ' doomed in advance to fail ure. Aorin declared. Earlier the Soviet diplomat called for the Immediate seating of Communist China and claimed It has the right to crush the lormosa regime by military might if necessary. The United States Is counting heavily on a resolution that mnii have the assembly declare the China representation issue a sub stantive one requiring a two thirds majority. The United States is confident it can block the admission of Red China if a two-thirds vote is re quired, but it is apprehensive about a simple majority. The resolution, by the United States, Italy, Colombia and Japan can be approved by a simple majority. Filmland Dream Marriage To End HOLLYWOOD (AP) Dinah Shore and George Montgomery announced today they will be di vorced, thus ending one of Holly wood's so-called dream mar riages. The announcement which stunned even their closest friends, came almost on the eve of their 18th wedding anniversary. They married Dec. S, 1943. A terse statement announcing a separation and plans for divorce was issued Jointly by the singer and her actor husband. The couple has two children, Melissa, 14, and John, 7. in the Kennedy administration. .-Ki-vcojon questioned by re. porters, showed only casual in terest in the nature of his talk with Kennedy on U.N. issues. But when the question was asked wnemer ne would run against Sen. Dirksen next jear. he grinned and displayed a readiness to discuss the whole question ia dctaiL He said he had not heard about llii- ... L-.J.1-.. ., . Mo ADD.rentIv Z ZCZa.I .. .. . , the publication of a story in Chi cago saying that he might run. As to the published report, he sjid, "I have not any such plan and I am not givinf. it any at- t.ii. ! ""ul am 1 oern DUST i' haven't had time to consider it." 4.