Medford mail tribune. (Medford, Or.) 1909-1989, February 03, 1923, Page 1, Image 1

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    Medford Mail Tribune
The Weather
Prediction Fair
Maximum yesterday 47.5
Minimum today 20
Weather Year Ago
Maximum 41
Minimum 30
Dally Seventeenth Year.
HaeklY Flfiy-Sooond Sear.
MEDFORD, OliEOOX, SATURDAY, FKBHUAKY 3, 1923
NO. 2(18
WORKERS IN
RUHR
SHOW
'iBSHGHT
French Report German Labor
Refuses to Take Orders
From Berlin and Agrees to
Aid French in Getting Out
Coal Magnates Alone Hold
Out Against Co-operation.
DUE8SELD0RF, Feb. 3. -(By the
Lssoclatcd Press) The temper of
he population In the occupied area
Ipearrt tQ bo undergoing a change.
ilchoUKli tiu indu.stilull.its and the
mportunt magnates are as unnllci
.bly opposed as ever to nay co -opera-Ion
wfth tho French and Belgians.
Not only have the railway workers
esumed thoir Jobs at Cologno, Cob
onz. Troves and Ludwlgshufen, as
yell as on some ot the Ruhr lines,
ml the Hchutz-Pollzcl at Dusseldorf
tave refused to obey Berlin's order
hat they Ignore the French officers
nd continue to salute them.
German members of tho intcrna
ional commission at Undents, in the
'oblenz area, who havo been working
I'ith the ullied experts In issuing ex
tort licenser., quit work but when
uul Tirard, tho French Ithineland
ommissionor. accepted their resig
i.itions nnd announced thnt ho would
111 their places with French and Ilel
:lan functionaries, tho Clermans ro
onsidered and romainod on tho job.
In Wlttcn, where the restaurant
nd hotel keepers havo been refusing
rt serve food or drinks to French of
Icers find soldiers, the situation has
nmplctoly changed. - No discourtesy
i now shown toward tho forces of
ceupation.
Labor Is Friendly
Tho improvement iu the relations
etween the foreign authorities and
ha population is confined to tho
.-orklng classes and to . the ...small
radesmcii and shop keepers. The
Tench authorities believe they have
Ionic and bitter fight to wage, but
opo to ;bring Berlin to terms nnd
urce the surrender of tho magnates.
fieneral Payot, who is operating !
evernl of the Important rallwny lines!
or tho French says he Is in a posl
lon to feed tho civilian population
nd will soon bo nblo to transport
oal to France. Food trains are
Ircacly moving into districts where
hO railway strlko is still effective.
Speaking of tho shortage of empty
oal ears, General Puyot said:
'The Ituhr district, even in nor
nal times, Is the gulf into which
mptles' must continually be poured.
Vhan- tho . repartition coal deliveries
ero affected according to schedule
y tho (lermnns, 70 per cent of the
mptles' noeded had to be supplied
y .the French and Belgians.
PLYMOUTH, England, Feb. 3.-
Ily the Associated Press) An act I
f' gross folly and Iho wrong way to
pproach the reparations problem
as former Prime Minister Lloyd
leorgo'a characterisation of tho ltuhr
ceupation in an interview hero todny
n his return from Spain.
.'It is a sure way not to get repa
ittions, I think'" ho said.
?2 DEATHS AND 15
ATHENS, Feb. J. Tho steamer
onia arrived at tho Piraeus yester
ay with 6600 refugees from Asia
Ilnor. There wero i!2 deaths from
rphus nnd small pox ns well as 15
irths during the voyage.
Dr. Mabel Elliott, representing the
.merlcan Women's hospital, has in
flected tho Ionia nnd ordered 200
lek persons, 150 children removed
i tho American hospital station. The
ther refugees aboard tho vessel will
e debarked Inter.
HUES MAKE SH0R1
EFFORT TO RE-OPEN
PARIS, Feb. 3. (By tho , Asso
rted Press) Tho reparations com
llsslon todny adopted a resolution
ustnlnlng Its own nctlon of January
. In refusing Oermnny a niorato
lum. The resolution was passed as
reply to yesterday's protest liote
mm Oermnny.
Frnnee. Italy and Belgium voted
rr the resolution. Great Britain ob
tained from voting, ns In recent rep
ration commission ballots.
Germany's note of yesterday rep.
wiented nn effort to renew tho tils
usslon with France nnd re-open the
epnrntlons controversy. It pro
wled against the reparations com
ilssion's decision of January ! n,ld
sked thnt the commission. In ne
ordnnrc with tho pence treaty, re-
Lloyd George Thinks
Debt Settlement Is
Too Hard On England
PLYMOUTH, England, Feb.
3. I By tho Associated Press.)
David Lloyd Cloorfio, the
former British prime minister,
returning -toduy nftor his vaca-
tlon In Spain said he felt Unit
tho Amencon debt settlement
terms wore hard and that bo
was "frankly disappointed."
"England Is able to pay," he
said, "but It is a hoavy bur-
den. I do not think it will
benefit America, as It must til-
mlulsh thoir markets In the
world, whether hero or else-
! whore. 4
"The United States nmdo the
best terms for their own coun-
try. It Is not for me to com- !
plain or criticise, hut I feel that
the terms nro hard. 1 still think
that tlm proposula of tho Bal-
four nolo aro sound."
STATE TAXES TO
BE SLASHED IS
Walter Pierce, Chief Execu
tive Full of Enthusiasm
Over Legislative Prospects
Income Tax Certain 3
Or 4 Mills Tax Reduction-
Governor Walter N. Pierce, as
genial as ever, arrived in Medford
tills noon, by auto from Ornnts Pass,
where ho vlsltex! for an hour, after
leaving train No. 13. He wus accom
panied by -Representative -Klrkwood
of Multnomah county and Represen
tative Ralph Cowgiil of this district.
The gubernatorial party made a hur
ried trip through tho Josephine
county irrigation district. The gov
ernor was greeted nt tho Medford
hotel by Mosc Barkdull, county cbnlr
mnn uf the Democratic party. Judge
C. M. Thomas. Prof. Reimer of the
Talent experiment station and others.
Tho chief executive was -in fine
spirits, and the wholesome good na
ture of the campaign hns not van
ished with his high honors. Ho hns
a brand new sombrero, wide rimmed,
given him by Bill Hanley, and missed
calling but two or three by their first
names when they came forth to greet
him..
'One thing I nm going to do during
my administration," ho "said, is to
" 'annex" southern Oregon from
California. Jackson and Klamath
counties nro too far out. I'm going
to get them back in Oregon." The
governor intlmuted that his first step
iu this direction was tho appointment
of Judge W. E. Crews commissioner
of corporations, and "by the laws of
tho game other faithful ' warhorses
were entitled to consideration, but 1
went outside of the fold."
"The legislature is as fine nnd sin
cere a body of men as ever assembled
at Salem," said Governor Pierco,
"and I have had lots of experience
with legislatures. They aro going to
accomplish some big things."
"1 look for the legislature to pnss
nn income tax bill, that will net 3.
000,000, which will bo Just that much
off the tax burden. Wo hnvo been
the most lavish of states, in tho ex
penditure of our credit, nnd we've got
to settle down and pay our debts, and
develop Oregon produi'ts, and buy
them after they are developed. Con
solidation of state offices, ns sug
gested in several bills, will help by
doing nway with inefficiency and du
plication of effort you get the sig
nificance of It."
The Irrigation problems of tho
stnte tho governor described . ns "a
big. big problem, nnd ono in which
I nin vitally Interested. It is a ques
tion whether we will extend our
(Continued on Page six 1
OF BERLi
THE NEGOTIATIONS
exnmino tho rapacity of Germany to
pay. f ,
The speed of tho commission's ac
tion on this note Is pointed to ns em
phasizing tho refusol. The note was
dated Thursday, It was received Fri
day nnd answered today.
"The repnrntlon commission, after
noting the German reply on Febru
ary 2, mnfntnins Its decision of Junu
ary S with Its consequences," the
resolution rend.
The. January 2(1 decision refused
Oermnny a moratorium and put In
force ngnln the schedule of payments
udoptcd May fi. 1921.
The commission today by the same
vote iinsscd a resolution to maintain
for 1!24 the schedule for deliveries
of wood by Oermnny arranged last1
July. , '
WORD OF GOVN R
The French Entering Essen, and Their Commander
IBS
iJ if ffjt " f f
Photo shows the advance guard of French cy lists entering lessen. Germany, as part of the French occu
pation of the Huhr. These men were followed by cavalry, tanks and armored cars and the whole occupa
tion went through with the smoothness of a well-oiled machine. (left) General Lamport of the 4th cav
alry division, who commanded tho Frenc h troops entering Essen (right) - Oenernl licgerette, commander In
chief of the French Iluhr armies.
T
R. R. OPERATION
WASHINGTON. Feb. 3. Losses
BUHtnined by the government from
war time operation of railways and
lt aftermath of earnings, guaran
teeH nnd damn go settlement will
total approximately $1,800,000,000,
according to data made available to
day for tho first tlmo in a report by
Jumeti C. Davis, director general of
railroads, transmitted to congress by
President Uardlnff. , Not only, docs
thtT-Ti mount como 'within congrrs
plonol appropriations already 'mado,
but thers will iiIho bo a return to the
treasury , of about J400.000.000 In
cash and railroad securities.
Mr. Oavla' estimates aro based on
the showing actually mado In If n nid
ation of accounts between tho gov
ernment and corporato owners of 80
per cent of tho railroad mileage
which tho government took' over.
Most of tho settlements yet to be
maae are expeciea io resun in payment-
by tho government in either
cash or securities.
Accounting in connection with tho
government operation has gone
through threo phases and involves
the inter-stato commerce commission
as well as tho railroad commission.
Losses In direct operation of the
roads and in tho later settlement of
capital investment and other claims.
as now practically completed by Di
rector General Davis are shown to
reach a total of $1,260,000,000, to
this is added a sum of between $526,
000,000 and $000,000,000, which has
or will bo paid by the commission to
short Uno railroads and to class one
carriers. This last amount includes
payment under tho guaranteo given
tho roads by congress of earnings
during the six months of 1920, just
after the government relinquished
the properties.
A scaling down of claims originally
made by tho roads ngalnst tho gov
ernment wan shown by Mr. Davis
report. To date the roads have de
manded $0r2.642.OG8 on grounds of
under-maintenance, damages, loss of
inventory nnd for other reasons. ITp
to December 31, final adjustment liad
been made with corporations which
sought $713,921,814 of that total, the
government having paid out a net
amount of only $171,815,541.
Mr. Davis expects tho balance of
unadjusted claims nmountlng to
$220,720,253, to be closed out by
October.
Only ono road has so far taken the
director general's decision into court,
It was added.
Ono factor pointed out by Mr.
Davis as facilitating the settlements
hns been the ability of tho railroad
administration to pay cash to car
riers willing to accept an award.
Government funds for these opera
tions In part wero derived from pate
of equipment trust securities amount
ing to $274,000,000, which were left
on the director general's hands after
tho period of operation, but subse
quently became desirable, to private
Investors.
I bellevo It may be confidently
predicted," Mr. Dnvis report stated.
that thern will ho not tn exceed a
holt dozen enrriers unable tn agree
with the government In arriving at
final adjustment nnd there may not
bo that number. From the
financial showing, It Is quite evident
that nn further appropriations will be
required to complete this liquidation
In every particular nnd it may be an
ticipated with some confidence that
after all liabilities of the government
nf whatsoever nature arising out "f
federal control have been liquidated,
the railroad administration can re
turn to tho treasury In collectible
obligations of solvent companies nnd
unexpended appropriations to nn
amount aggregating about $400,000,-
000."
Maintenance of tho rnllrnnd ad
ministration organization which hns
(Continued on Page ill.)
GOV
$1,800,000,000! mM
0. S. SENATE
WASHINGTON. Feb. 3. Undis
mayed by the rebukes administered
by the Benato yesterday Iu twice or
dering expunged from the record his
remarks reflecting on other sena
tors. Senator Heflln, democrnt, Ala
bama, reviewed the whole incident
today In the senate, declaring he had
been treated unfalfly by the "sub
sidized prons,"-and threatening steps
to prevent "certain press represcnta
tlvos from sitting C ,iho- press gal
lery." Senator Heflln rend .to tho senate
oeveiul newspaper accounts of the
senate proceedings of Thursday and
yesterday and enid ho bad been un
able to find a single one that had a
"correct description of what took
place." Newspapermen BOt . In the
i press gallery only hy permission of
the senato, he said, and asserted that
tho senate vmight have to pass Btich
a law as was adopted hy the Florida
legislature designating certain news
papermen as ineligible to admission.
"Tho uewspapers carried the mis
information that I attacked Senator
Wadsworth," said Senator Hofllu, re
ferring to his referenco to Senator
Wadsworth which; was ordered ex
punged from tho record. "Tho vice
president hy his ruling and not me,
reflected on Senator Wadsworth.",
He donled that he meant Senator
Wadsworth when he said on Thurs
day: "I am hero to ropresent my party:
I am not here to represent tho bond
sharks, the big financiers of Wall
street."
The ruling of Vico FrcBidont Cool
Idge In declaring him out of order
because of these remarks, he said.
In effect directed the objectionable
language nt Senator Wadsworth.- -
Although tho senate yesterday
ndoptod a resolution expunging from
the Congressional Record tho re
marks which had resulted In Mr.
Heflln being rebuked ns well as tho
rejoinder of Senator Couzens, repub
lican, Michigan, the record today ap
peared with considerable debate
bearing upon the incident.
COLD SPELL HIIS
Tl
I
CHICAGO, Feb. 3. A blast of
winter from the northwest that
caused sudden drops of temperature
In the plains states Inst nlnht wns
overspreading the United States to
day. From the far northwest to the
central nnd southern portion of
sunny Florida, from New York to
San Francisco, weather disturbances
of n greater or lesser degree of In
tensity were reported and accompa
nied In most rnses by lower tempera
tures were reported In progress oi
predicted for this week end.
Basketball Player Is
Killed at The Dalles
TIIU KALLF.H, Ore., Feb. 3.
Stanley lteise, 15, 'n member of the
Arlington hltrh school bnnketbnll
tentn, was killed hero Inst night
when the brakes of an nutomohllo In
which he nnd other players were re
turning from Wasco, gave way on a
long hill near Itufus and the machine
crushed Into n bank and overturned.
Other occupants of the ear suffered
cuts and bruises.
rnnun
T
TO
IS
S
PARIS, Feb. 3. (By the Associat
ed Press.) The Gorman govern-
ment's note to the reparations com-
mlsslon protesting against tho re-
cent refusal of a moratorium Is re-
gnrded by a part ot tho French press
as a forerunner of German capltula-
tlon and as a direct result ot French
action in the Ruhr.
..-Publication of . the . nolo- -today
causes commentators to remark that
it presents Germany's first attempt
toward resumption of exchanges
with the allies.
"Aa a linmii tn fta nnA nf 1nn,ll..V
13," the communication says, "tho
German government suspended pay-
mouts In kind to France nnd Uelglum
solely because of tho Invasion
which was contrary to tho treaty
I of the Ruhr, by these two powers,
nnd solely for the duration of this
state of affairs and its consequences."
"In thus acting, the German gov-
eminent exercises its unquestionable ;
right. The.ro cannot be a question of
defuult In the senco of paragraph
17, annex 2, part S, of the treaty- of
Versailles. Consequently tho Ger-
man government protests against.
Buch a default holng rccordod."
Tho note then contests tho conclti-
slon that the German request for a
moratorium had become null and
void. It cites the reparation commls-
slon's decision of March 21, 1922,
recognizing that tho financinl sllua-
tlon of Gernfany did not permit of
her making the specific payments for
1922 luld down by the schedule ot
May 5, 1921.
- It cites also the commission's de
cision of August 31, 1922, express
ly recognizing the fnct that Ger
many had lost all her credit, Inter
nal and external, In which the com
mission considered 111,0 question of
reducing the external charges to bo
Imposed on Germany.
"Furthermore," continues tho
note; "each of tho principal allied
powers In plans submitted to the
Paris conference on January 2, rec
ognized the present Incapacity of Ger
many regarding payment In kind and
considered the question of the Imme
diate grant of a moratorium of sev
eral years, In addition to a reduction
of the total obligations under the
schedule of payments of May B, 1921.
"Meanwhile the financial and econ
omic situation in Germany huB grown
still worse, owing to tho occupation
ot the Ruhr. The mark hus fallen
to 1-10, 000th of Its pro-war value."
The note declares Germany conBld
ers that tho repnratlnn commission
In returning to the schedule of pay
ments adopted in London In 1921, Is
In conflict with the former attitude
of both the commission and tho prin
cipal allied powers. The action of
tho commission, Germany contends,
contravenes the provisions of the
Versailles treaty, which document
makes Germany's obligations depend
upon her capacity for payment and 1
sets forth that her vital needs should
havo preference over her reparations
obligations.
"Now that French nnd Belgian
troons have! Invaded tb Ruhr, and
the German terirtnrv on the left bank
GERMANY ABOU
SURRENDER
PAR
IW
of tho Rhine as well as tho Ruhr has dent tonight. While thero was no of
begun to ho detached economically fldal statement. Indications were that
and fnanclally fr.m the r!.-!
or the economic organlnllon of Oer-hnrlBtnn fo,. wh(.h ,,, ,irPI,in(mt
many, the Gemma government still j wm bo ul.K.d to ask of congress In
less than before. Is In a position to i translating the results of tho corn
meet the obligations of the London i mission's negotiations Into law.
It wns said to he the president's In-
(Continued on Pngo Six) Mention to send tho commissions rec
Flu Germ Isolated
By Rockefeller Inst.
May Mean a Cure
s
SCI I EN ECT AD V, N. V Feb. 3.
Hopes of thousands of Buffer-
era from epidemic Influenza for
n cure or prevention of tho dls-
ease wero raised today by tho an-
notinooment of the discovery of
the cause and Isolation of the
germ.
Tho announcement Is mado hy
Dr. Simon Flexnor, director of
tho Rockefeller Institute of medl- 4
cal research, who attributes the
discovery to Dr. Peter Olltsky
ami Dr. Frederick T. GatoB, also
of the Institute.
The Isolation will penult ex-
perlmontntion with antidotes and
antitoxins.
Chief Executive Refuses to
Sign Inheritance Exemption
Vetoed By Gov. Olcott 12
Bills Signed Thus Far Re
duce College Funds'
SALEM, Ore., Feb. 3. Governor W.
M. Pierco hns vetoed tho bill Intro-
duced by Senator Jap Upton of Prlno-
vllle to exempt from Inheritance tax
the $1,000,000 estate lolt by Dr. Her-
hard Daly of Lakevlew as a fund for
educating boys and girls of Lake
county.
j With four weeks of tho legislative
session gone, 16 bills Have been
passed hy both houses. Of these 12
have been signed by the govornor. In
th.i house 314 bills havo boen lntrcn
duced, two or them sluoo Monday
fllfrllt vttll Hid finniYlVnl nP tilA 1a-(.
lntlve committee. Forty house bills
havo been defeated, withdrawn or
definitely potK)ned, seven have
passed both houses nnd 66 havo
been passed by the houso hut not
yet disposed of hy the senate. In tho
senate 134 bills have been introduced
and nlno of these have passed both
houses,
Revision of the stato banking codo
providing olosor supervision nnd
greater safeguards for depositors was
Introduced late yosterday by Senators
O. B. Robertson of Condon and W. G.
Hare of Hilhiboro.
The Daly estate exemption bill is
tho first vetoed by Governor Pierce,
His action was based on on opinion
by Attorney Gonernl Van Winkle, who
held the bill violates constitutional
provisions guaranteeing prlvllegoa and
Immilnltles. Tho Inheritance tax
which tho bill would have remittal
amounts to approximately $200,000.
SALKM, Ore., Feb. 3. Senators
Smith, Taylor, LaFoIlotte, Strnycr and
Zimmerman yestordny Introduced a
hill that would make the millnge tax
levy for . Oregon Agricultural college,
tho University of Oregon, cover vari
ous extension nnd experiment nc
tlvltlcs of thoso Institutions as well
as tho Institutions themselves. For
0. A. C. the bill would sot aside $233,
099.37 annually for the purimse of a
continuing appropriation nnd for the
state university thfl sum of $135,
D28.75, the amounts to be subtracted
from the millage levy proceeds. The
annual millage levy for the support of
tho two Institutions Is 1.2 mills.
(Continued on page alt.
U.S.
WASHINGTON, Feb. 3. (By tho
Associated Press) Tho Amorican
debt funding commission hos been
called to meet lato today for a dis
cussion of tho form of tho recommen
dations It will mnko to President
ii.irdlnir In connection with tho plan
for fundnB oreat Britain's war time
debti finally approved by tho com
mission last night.
It is tho hope of the commission
to plaeo tho drnft of its recommen
dations In the hands of tho presl-
m EXEMPTION
IS ALSO VETOED
B GOV. PIERCE
A TERRIFIC
EARTHOUAKE
IS RECORDED
One of Worst Seismic Dis
turbances in History, Re
corded Throughout U. S. A.
Center of Disturbance Be
lieved Near Japan Needles
Thrown Off Machine.
RKDDI.NO, Oil.. Feb. B.
lesson I'ourk, tho only etl to
volcano witilin the limits of tho
I nlted States was without Its
iisuul winter covering of spot
Icnm white an n result of nn erup
tion yesterday vtiiicli was contin
uing at latest reports. The erup
tion at first consisted only of
steam, which was mistaken for
tli Ntvlrllnjr. of snow, but later
wnokis billowed out In great
puffs nnd nppttrantly carried
with it Mima ashes, a the snow
v. N darkened for Homo distance
down tho mountainsides.
The mountain has Iain dormant
for several months prior to yos
terday. NEW YORK, Feb. 3. Belief that
tho earthquake recorded today on
selzmogrnphs all over the country
was centralized south of Japan, pos
Blbly In the Philippines was express
ed at the American Museum of Nat
ural History.
WASHINGTON, Feb. 3. A tre
mendous earthquake was recorded on
seismographs throughout the United
States today. Its location was un
certain. Father Tondorf, observer
nt the famous Georgetown observa
tory, said It might be In Argentine, .:
hut observers at other places sug'
gested Alaska, the Philippines, Japan
or China, as the probable center of
the disturbance.
Before 1 p. m. two of the record
ing needles hnd been thrown entirely
off the record. '
At that hour iho quake had been in
progress for some time, but It was
Impossible to determine exactly when
it started or estimate its distance
front Washington. Indications were
that tho center of the disturbance
probabla was between 4,000 and 5,
000 miles from Washington, about '
the same distance as the two dis
turbances recorded Thursday and
Friday, neither of which has been
determined as to location. , ,
CLEVELAND, Ohio, Feb. 3. "If
the earth shocks nro on, land we may
expect to hear very bad news,"
Father Odenhnch of St. Ignntlus Ob
servatory, said today. t
The shocks as recorded on his In
strument, ho said belittle nny ot ro
cent years. At Intervals tho seismo
graph would reach high points
equalled by the Mount Pelee volcano
eruption In 1900.
Heavy winds nnd disturbed weather
conditions surrounding the observa
tory prevented nny accurate rending
of the instruments until tho shocks
were definitely concluded, he nnld.
The seismograph was still record
ing tho tremors at 2 p. m Father
bdenbach said, but not so violently
as at noon. 's
"The shocks may be ! In South
America or Alaska, If on land, or In
the Pacific ocean If on water," ho
said. "I am Inclined to believo wo
mny hear from South America Inter."-
First and secondary' primary read
ings of tho tape tomorrow morning
will bo necessary before, the distance
or location can bo estimated, he said.
BAN FRANCISCO, Fob. . (By
(Continued on Page Six)
APPROVES DEBT
up to con
ommendations to congress early next
week. .
As announced last night after a
meeting of tho commission with Sir
Auckland Oeddes. the British ambas
sador, the funding arrangement con
forms with pruvlous announcements
ns to Interest arrangements nnd pro
vision for flnnl extinguishment of Iho
debt In G2 years. Tho Interest rnte Is
fixed at three per cent for tho first
ten years, from December IS, 192J.
nnd three nnd one-half per rent
thereafter, with a fixed schedulo of
amortization payments npxroxlmat
Ing nn average of one-halt of one per
cent of tho principal.
Tho British government Is given
the right tn mnko the annual pay
ments on principal In three yenr in
stallments instead of every twelvo
months, nnd also, on ninety days no
tice, to retire any additional amount
of the bonded principal. Great Brit
ain's financial position permits. '
I i
i
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t
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r
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it i.'tw.'wn.;'aip'