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DISPATCHES 41
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Weather Report !;
Oregon: Tonight tsi Wed-
aeeday rain, increasing south-
easterly winas,
11 iii J
FORTY-SECOND YE AR NO. 12.
SALEM, OREGON, TUESDAY, JANUARY 21,1919.
PRICE TWO CENTS
ON TRAINS AND NEWS
STANDS FIVE TENTS
ifflTIL l (T W
,1 .;r :--r- -
1 til. J 3 5
f ' - jl rTr?nrrirnTinirrteaTi
ARMOUR FLATLY DEfJIES CHARGES
OF CONSPIRACY WITH PACKERS IN
INVESTIGATION LiV TRADE
THROUGHOUT HEINC, HE MADE HIE
EEDEM. TRADE M$$M HIS
tmet, mmu urinous
.Urged Congress Not To Pass Pending BLis Providing
government Lacensing Of Packing Houses, Or Gov
ernment Ownership And Operation Of Stockyards
Or Other Adjuncts To Packing Business.
By Raymond. Clapper
. (United Prpss Staff Correspondent.)
Washington, Jan. 21. Flatly dony
ing charges of conspiracy with other
packers, J. Ogdcn Armour replied to
the recent firo of the feaem ade
commission today,
- Testifying bofore the house interstate
commerce committee, ha built up an
elaborate defense of his concern 'a busi
ness conduct.
Armour fi rushed with his sweeping
ueniai:
"1 say to you positively that we have
Jiot for- many years been and are not
jiow in any pool, combination or ar
fangcuicnt of any kind, either diroctly
or indirectly, or openly or secretly or
u. tlcr cover. All such cliargos are 'ut
terly unfair and untrue."
jrurpughuut Atmour made the foderal
trade commission .. his, target,- attacking
its methods during the recent investiga
tion .directed by Francis J. Iienoy.
' Armour's First Appearance.
This was Armour's first appearance
In-fore a government body. His com
pany has not previously been givou a
chance to answer accusations, ho said.
"in tho investigation made by tho
federal trade commission, ' and which
lias resulted in the pending bills, it
Ims been admited by Chairman Colvor
that we were afforded no opportuniy
to produce witnesses to inroduce testi
mony or to expain Or answer any ol
tho documents introduced at that hoas
tug," Armour asserted.
Ho earnestly urged congress not K
pass pending bills providing govern
ment licensing of packing houses, and
(jovcrnment ownership or operation of
dockyards, refrigerator cars, branch
linuscs and other adjunct) to the pack
ing business.
"If a monkey wrench is thrown into
the gears of this business, its effect
will not be confined to the meat pack
ing industry," Armour went on.
'. "The theories on which ponding leg-
ulation is based are not constructive,
Mtey are not progressive. They are re
actionary." ' 'Stiip.h Ijiwa nrnhnblv will he uncon.
. stitutional, Armour's legal advisers bo
ieve. Touched High Prices.
, . . . ... . . . . ..
- r -- -j -- r. l -
witness said live hogs had increased in
nice 245 per cent in four years. Labor
and fuel costs have also gone up, he
pointed out.
. . Charges of excessive profits, how
ever, wero denied. In 1918 Armour's
profits are said to have been 1.8 cents
on each dollar of sales, as compared
with 3.7 in 1917.
Itccallina that on November 1. 1917.
'i nncnintr nrier v nn nioh Tirieoa. run
tho food administration limited pack
erg to 9 por cent on. the capital invest
ment in meat producing linos, Armour
declared that only about one-half of
this nlowance was actually earned.
"The federal trade commission," be
continued, "has failed completely to.
justify its charges of unduly large prof
its, '
"During the last 18 years, including
the war period, the earnings of Armour
end company, on the actual investment
and appraised value of the business av
eraged 6.9 per cant on everything in
cluding all our by-products sod all ear
associated lines.''
"Side lines pay the bills," said Ar
mour, in explaining the policy of push
ing by-products. The sales organiza
tion can be used and factories and em
ployes ccn be kept busy in off-season
periods, soap,, violin strings, soft
drinks and perfume were classed as
legitimate sideline for packers.
Had Lost Honey.
Referring to the pending bill, which
would take rf-f rigerator cars out of pack
erg' hands, Armour insisted he had lost
money on refrigerator cars for the lat
(iix years, but that they were essential.
.They are subject to tho interstate com
merce commission, he said, adding that
lie. failed to see any advantage to the
fiu'olie by government ownership of
them.
. Armour consider! government owner
ship of stockysrds immaterial as long
as efficient service is rendered, de
fending present packor control.
"As a packer, I am interested in
seeing the yards handled in the most
efficient way possible and it is abso
ultcly immaterial t0 mo who owns thorc
"Ownership by tho government im
plies red tape and restrictions which
cannot help but add to the costs of tho
sorvicn. I uiu entirely ready and will
ing at once to relinquish my holdings
upon being allowed just compensation
"Somo of our critics charge that oup
interests in stockyards and exchange
building give us & club over tho hoad
of the commission man who must do our
bidding or bo relegated to undesirablo
orrices and pens, ouch encrges ara.
utterly untrue."
. Existence of pools in the days when
they wero common was admitted by,. Ar
mour .., ....
. i High Business Ethics. ' 'i
' Tlio business of Armour and com
pany is conducted in accord with the
highest and best business ethics of the
day. A generation ago when pools and
combinations" of various kinds in rail
roads and in evory kind of business
wero common and-of every day occur
rence, were ethical, and wero supposed
ly legal, we were then somtimcs a- party
to them; but when new legislation or
now interpretations of existing legisla
tion made such pools and combinations
improper we absolutely ceased to bo
purlins to any of them."
Pricor agreements as to lard substi
tutes wero not a result of "collusion"
Armour told the committee. They wcr-j
fixed by the food administration to sta
bilize prices.
Ho went into detailed explanation of
the famous "fifty-fifty" letters which
tho federal trade commission took as
evidence of 8 working ngreomont in
Denver between Swift and Armour.
Armour denied there was such an
agreement in a criminal sense.
When Philiy D. Armour wroto from
Denver that "everything here is on a
50-50 basis, ho meant," the witness
said, that tho division was about equal
on a natural competitive basis, a con
tinuation of an even start, each concern
had in 1912, when tho National Pack
ing company was split by the two pack
ers. "The 400 per cent stock dividend
was merely a bookkeeping transaction
porfectly honest and legal in every re
spect," according to Armour. "It
merely gave each stockholder five
shares of stock where formerly he held
one, the value of which was equal to
tho five which replaced it.'-'
Several More Cruisers
And Transports Sail
Washington, Jan. 21. The cruiser
(Frederick, Brest for New York, is due
January 29 with groups from the 83d
.division to bo demobilized at Camp
Sherman.
The transport Conia, Brert for New
(York, is due January 24 with eastern
troops.
The transport 'Easterner, Bordeaux
for iNow York, is due February 4, with
four casual officers.
The transport Alseeon, St. Nazaire
.for New York, is due February 3 with
an Alabama casual detachment and six
,teea casual officers.
The transport Susquehanna, St. Na
taire for Newport News, is due Jan
uary 31 with casual companies, includ
ing the 444th (Illinois); J30th (Ida
ho); 47 casual officers, about 600 sick
and wounded, and six officers and 71
men of the navy.
BRITISH MISSION IN FIGHT.
Budapest, Jan. 19. Members of the
British mission in Letnberg narrowly
escaped death during bombardment ot
that city by the Ukrainians when a
shell exploded in s- street near them,
according to a dispatch received here
today.
E
JOINED WITH I. W J.
Ways And Means Comniiftee
Thinks There Are Enough
Jobs For Soldiers.
Members of the senato and house
ways and means committees, mooting
in joint session last night, expressed
their opinion of soldiers who are mix
ing with the I. W. W. a-nd bolshevist
clement in Portland.
They were unanimous in the opinion
that no sympathy should bo extended
to that class of soldiers, as it was
brought out that there are enough jobs
boing ofefred to the men returning
from 'war to tuke care of ell of them
if tho men would but accept tho work.
They were equally unanimous in the
opinion that the deserving soldier
should bo given assistance to tide him
ovor uutil ho gets a job, and that a
small appropriation should bo mado for
that purpose, . . ' -i
Senator J. C. Smith said he visited
Portland over tho weekend and investi
gated conditions there. He found that
a number of soldiers wero mingling
with tho I. W. W., but ho classed them
as men who would not work if they hud
a,!ir.hce. '
Mrs. Alexander Thohmpson exprossed
tho belief that for evory soldier who
joined the reds there would bo 10 who
would not and the 10 would handle
those who did.
"The polico of the city of Portland
should tako tho uniform off of soldiers
who wear a red button or a rod flag,"
declares Senator Lachmund "and they
should then fake the button away from
them."
Eeprosentative Herbert Gordon, chair
man of tho house ways and means com
mittee, said the legislature should pro
vide ofr tho worthy soldior. who might
bo iu need, but that those who wero
joining tho I. W. W. should bo handled
with a strong arm.
Discussed State Institutions.
Tho joint ways and means committee
lust night discussed some of the state
institutions which had been visitea by
sub-committees during the week-end re
cess. Senator Smith reported that the
committee which visited tho penitentia
ry was unanimous in the opinion that
it would bo a wasto of money to make
appropriations for pormancnt improve
ments until new buildings were provid
ed. He said the present buildings wero
unsanitary, dirty and unsafe. Ho rec
ommended that appropriations be mado
for temporary repairs, to last until the
question of voting money for now build
ings can bo submitted to the people
again.
Mrs. Thompson thought a bomb
should be placed under the buildings
and blow them up, and similar action
should be t'akca at the boys' training
school.
On recommendation of Senators Stray
cr, Patterson aad Mrs. Thompson, a cut
of'$13,500 was made in the requests for
the state institution for the feeble
minded. The largest item cut was $10
000 for a new hospital. The committee
recommended that a request for $50,000 (
for two new dormitories be allowed ana
that a portion of one of the new dormi
tories be used for a hospital until funds
could be obtained for a hospital build
ing. The committee praised the eonduct
of tho institution- and said the cuts
were agreeable to Superintendent Smith
The joint committee listened to rep
resentatives of tha Pacifie Northwst
Tourist association explain the work of
that organization as an argument in
support of the request for 50,000. for
the next two years- No action was tak
en. The state fair board will be given a;
hearing Wednesday night, while next
Monday night the committee will give a
hoartntr tA thnuM intATAAtAii in the fltate
aided institutions, most of which are!
located in Portland.
THREE STEAMSHIPS AKJUVE
New York, Jan. tl. Three steam
ships arrived today with more than 4,
500 troops and civilian patingers.
The transport George Washington
carried 3474 men.
The Italian steamer Verdi from Ge
noa and Gibraltar, brought 8j6 civilian
passengers and 439 sailors.
Arrangement have been made to'
place '10,009 discharged soldiers ia the
shipyards of Hew York.
SEHATE FAVORS BIG
EDUCATIONAL EILL
PTisi;w
Adtpts Bill froTiiks Tht
Stub's And Sailtri Bi
fci Prefcresce,
This morning the senate pase3 sen
ate joint memorial No. 4, introdneed by
Senator. I. S. Smith, which urges eon
groat to pass the big edueational bill
now pending before that body. The
bill crettes a separate department of
education,, which shall be headed by a
chief who.; shall ; be a member of the
president's cabinet, and provides for
t'i- government to co-operate with the
states in advanriijj industrial educa
tion, training of teachers and along
other lines.
Tho revision of laws committee, of
which Senator Eddy is chairman, made
5. favorable report on Senator Huston's
bill which provides that ex-soldiers and
sailors must be given preference in ail
public employment. and all publie con
tracts. The committee made a few mi'
nor amendments and the report and
emendents wero adonicA.
Senator ilddy introduced a bill wWch
provides that unicipalities having a lieu
on property must bo made a party to all
tax foreclosure suits against such prop
erty. It ijIbo gives the municipality
authority to use its funds to redoom
proporty against which it has a lien
and against whjeh the taxes are delin
quent. In the casof'of the sale of prop
erly on foreclosure of tax liens, the mu
nicipality having r Hon may be a biddor
and miy in tho proporty, Monoy spoilt
for this purpose may be added by the
municipality to -tho amount of its lien
nnd in case the proporty ig redeemed
the entire amount can bo .recovered
from the property owner. -
SENATE AND HOUSE TO
TALK ROADS :TCH
Date Of Meeting Changed Af
ter Much Sparring Between
Two Houses.
A public meeting of tho senato and
house committees on roads and high
ways will ibo held tonight in the 'bouse
of representatives for the purpose of
hearing addresses from mombers of the
state highway commission en proposed
road legislation.
This date was fixed after much spar
ring betwoen the senate and house, and
was a decided victory ifor Senator
Thomas, who introduced tho resolution
providing for the meeting. The final
date, was fixed by conference commit
tees, which were appointed by the eon
ate and the house after the senate had
rofuaed to concur in an amendment
mado by tho house postponing the date
of the meeting until next Monday night
The original resolution called for a
public meeting last night. The senate
amended the resolution, postponing the
timo until next Thursday night. Then
the house amended it again, postponing
the meeting until next Monday night.
Thig was too much for Senator
Thomas and some of the other support
ers of the resolution, so when Senator
Orton mado a motion to concur in the
house amendment Senators Thomas and
Lachmund jumped all over him. The
sonated stood by them and voted down
tho amendment.
"I can't understand the motive for
seeking thig delay," said Senator
Thomas, "unless somebody is waiting
for some outside person to draft a bill
and bring it in when It is too late to
give us time to consider it. I am op
posed to any ifurthcr dely ia getting
the information! which tha highway
commission can give us."
Senator Lachmund opposed the de
lay, saying if there was any informa
tion which the members do not have
about roads and highways sow ia tha
time to get it.
A committee of three, comprised of
Senators Wood, J. C. Smith and Niek
elsen, was appointed by President Vin
ton to co-operate with a like committee
from the house in drafting regulations
for guarding against the flu.
iWith aaaaimous rote, tha seaata
adopted Senator Bitner 'i resolution pro
riding for a joins session of the two
houses of tho legislature cn -February
9 as a memorial to Theodors Boosevelt
Senator Pieree introduced a bill pro
viding that the members of tha state
highway commission shall receive sal
aries of $4000 a year each, and shall
give their entire time to the duties
their "ffiee.
WISCONSIN PABTICTTLAB
Alcohol and gasoline can't
be mixed in Wisconsin's aerial
domain. A state dry law now
being framed provides no whis
key shall bo carried or drunk
in an airplane.
MAYOR AUTHORIZED TO
UFT BAN VIitH REALTH
BOARD RECOMMENDS IT
(Jsaiiiity Aid Varriy Of Essi
tess Dispssd Cf At Cosn-'
Th regular eeunsil meeting last eve
ning brought out all but two of the
aldermen, and the two-hourg session
touched 8 high mark in the variety and
quantity of business disposed of. Bo
ports from the various departments
werepresented by the recorder and sent
through almost without comment. The
Oratory of the session focussed upon
the influenza situation, the proposed
suit against the state fair board and
the long drawn eity water case, while
an overplus of brain energy was de
voted to minor feature of janitor's sal
ary. The committer on health brought in
a report showing the Bed Cross mer
gency work had created to date au ex
pense of $1221, a large part of which
was used in purchasing equipment for
tiho emergency hospital. It was suggest
ed that this amount might be mater
ially lessened later by re-selling uten
sils, furniture, etc., and it was thought
that eventually the cost of the hospit
al would be reduced by at least $200
which would be paid in by patients
who wero able to pay for the service.
An additional expense of $334 had been
incurred for the services of nurses hi
caring for . cases in different parts of
the city. A motion that four doctors
be named by tho mayor to act in con
junction, with the health committee in
dealing with the situation was carried
without dissent. But when later a res
olution was presented authorizing tho
mayor to declare tho ban removed on
the recommendation of the health
board, thero was a flaro-foaek of oppo
sition, the objectors holding that as
the town had been closed by action of
the council, that body should act m
lifting the ban. Dr. Utter reassured by
stating that it was only desired to en
able the mayor to act in tho matter
without the formality of a special ses
sion of tho council Tho resolution fin
ally" carried with two dissenting votes.
' Committee Appointed
The proposition- to form a special
committee to co-operate with tho health
board in a campaign of education and
offort to stump out tho plaguo drew a
little display ef . fireworks, as one al
derman considered it uncalled for af
ter, appointing four doctors for this
purpose. The motion iiinnuy went tnru
with the provision that the committee
be made up of the mayor, tho board
of health, the president of tho Com
mercial club, tho president ol the ltea
Cross, two editors, one doctor, ono drug
gist, one banker and one preacher a
combination that should stamp out any
plague by sheer force of personality.
Tho mossy and cobwebbed case of
lhe city versus the water company was
again brought to the fore through a
(Continued on page two)
5.36 INCHES Of RAIN
.HAS FALLEN IN 1919
Precipitation Tips Far Indi
cates Heavier Kami all Than
Usual In January.
Although it has been raininc pretty
steady off and on for the past week
there has no great amount of rain fall
en gince Jan. 15 when the wet spell be-
Last Wednesday the precipitation
was .38 of an inch followed by .30 of
an inch Thursday. On Friday Jan. 17,
the rain fall was heavier with 1.90
es and the next day with .15 of an
inch.
The heavy rainfall for this wet spell
was for the 24 hours ending at 8 o 'clock
Sunday morning when the precipitation
was 2.20 inches. For the 24 hours end
ing Monday morning of this week 'it
was .1.1 of an inch and for the same
time ending 8 o'clock thig morning it
was .28 of an inch. These records are
from the government's officii. 1 rain
guage.
Hence for the past week there has
been S.3fl inches of rain up to the rec
ord of the 21st, all of whieh indicates
pretty well that January of 1919 will
be somewhat wetter than the average
first motith of the yes-r. For the past
five years the rainfall in January has
been as follows: 1914, 8.89 inches;
1915. 4.05 inches; 1910, 0.12 inches;
1917, 1.30 inches and 1918, 4.39 inches.
Tho river this morning at 8 o'clock
was 17.S feet above zero. Tho flood
stage of the sudden rise the past week
wss Monday morning when the water
reached ld.O feet above and was cov
ering the dock of the Oregon City
Transportation warehouse. About noon
yesterday the water began receding and
by 8 o'clock last nigt had ftllen to The Pacific Coast Steel company at
11.2 feet. According to the estimates Youngstown, was not affected by the
of the weather office1, the flood stage ' strike. The strike conference commit
haa been rei.fhcd and the river will tee of the metal trades couneil was in
urudunllv fall, iiuiwilhstnnding the lo- -
cal itins. ' iContiuucd on page three)
Apparently Elected Philip Scheidemann In Berlin, White
Independent Socialists Elected Hugo Haase And Po
lice President Eichom. Matbias Erzberger Also Re
ceived High Vote In German Capital. '
Bcrtia. Jan. 80. Spartncang succeed
ed ia preventing the national elections
Sunday in Hamburg and several Bhine
land towns, it was learned today.. In
this region, it was believed the vote
wonio Oiave favored thei centrist
(church) party amd the German demo-
crate (liberals) so the apparent country
wide fcr?in of the majority socialists
in the national assembly is not serious
ly affected.
According to the latest available re
turns the various parties won tha fol
lowing districts:
Majority socialists, city of nerim
(result close); Wurttembure, Lorraich,
Mecklenburg, Lubec.k, Northern Schlos
wig, Hanover, Dresden, Bremen, Ham
bun. Nuremibure, Chemnitz,
Centrists--(coalition of Catholics and
protestants) Bavaria (including sev
eral districts), Freiburg, Waldshut,
Sackingon, Constance, esat Prussia.
Gorman democrats Mannheim, Dan
zig, Barmen. i
Independent (independent socialists
an,d Spartacans) Frankfort-on-tho-Main,
Bnimswick.
Nationalist 'Elborfold, Madgeburg.
Peoples party (pan-Germans) None.
Schiedemann Elected
In Berlin tho majority socialists ap
parently had elected Philip Scheide
SEATTLE Al TAC01
LA R G Ex PROPORTIONS
Unions Affiliated With Metal
Trades Council Walk Out
This Morning.
Seattle, Wash., Jan. 21.--Y.'ith 30,000
shipyard workers on strike in Seattle
and 13,000 in Tacoma, tho greatest in
dustrial battle in the history of tho
northwest began at 10 o'clock thit
morning-
In addition to this number 8,000 car
penters in Seattle are thrown out of
work although they opposed tho strike.
Sirens and wh sties screeched at the
appointed time, notifying the men that
the strike hour had arrived. Immediate
ly they laid down their tools, and walk
ed out. They poured out of the Skinner
and Eddy yards by tho thousands,
12,500 men in all quitting at the banner
shipyard of the country. Approximately
2500 quit at the Ames yard and similar
numbers left work at the Duthie plant
and the Seattle North Pacific Shipyard
ana the Meauie wortn racuic cnipyara ,
company. ooi ' um u,w.u,
T'wVr".0. wec-oa!
affected. Whilo the stroets were Joa
gested when tho strikers walked out,
no disturbances of any kind occurred.
Strike Followed Refusal.
The strike order was issued by the
Metal Trades Council following the
fusal of tho employers to accept the
new basic wage scale of $8 for machin
ists, $7 for skilled labor and $6 for un-
.,..: i.v.. . . -ii,t k.,. a,..
win thi, Btrike and ,ccur,
inch-!mll)(,UnHal American wages for Seattle
labor," declared Bert Swain, secretary
p n,.fil trmAna pnitnpil at n'nnn to-
aay
' 'Public sentiment is with us."
Tha entire northwest, as represented
by orgasized labor, is solidly back of
the local strike, Swain declared.
"I have nothing to say," stated D B.
Skinner, president of tho big Skinner
and Eddy plant when told tha men at
bis plant had stopped work.
'Oar case seems to be clear. It Is
one of the unfair demands on us, that
the public must recognize without elab
oration or comment, " said Edgar Ames
president of the Ames plant.
It it iatimated by these in touch
with th employors, who Jiave obtain
ed ''inside" information from th em
ployers' conferences of last week that
the strike will be a long one-
Whss the strike whistles blew, the
men laid down their tools quietly and
walked eut without disturbance. Instead
of loitering about the gates, th strik
ers boarded cars for their homes, some
stopping down town o purchase sup
plies for their families.
A number of small yards and contract
shops, having signed the new blanket
acreement. continued operating.
mann, Biehard Tiseher, Wilhelm Pfan
nezluck, Bobert Schmidt and Hags
Hcidmann; the independent socialists,
Hugo Haase, Police President Eichora,
Louisa Zeiss and Herr Laukaut; tha
German democrat, Gustave Hartmaaa
and Herr Naumann and the centrists,
nationalists and peoples party, co-cpe-sting,
Wilhelm Karl, Herr KardoCf
and Herr (Lodrowcnta.
Iater returns showed that Mafltiast
Erzberger, chairman of tho Gcrmaa
armistice commission and leader of th
centrist pariy, Friedrich Voa Payer,
former vice chancellor; Herr Ha
mann and Herr GrOtbrr a so had team.
ejected in Berlin.
The majority socialists won 'am 'asy
victory in northern Schleswig which.
was ono or ine iirsi oiwij-'ctb io jo'"
the revolution. Prussia, which hitherto
has been regarded as strongly against
that party, polled 100,000 votca for
the majority socialist candidates,
against 117,000 for the conservativesw
In Hanover the majority socialists won
overwhelmimlv irettina 120.000 votes-
to 3000 for the inilepcndejit socialis's,
returng from Dresden, Bremen and
Hamburg showed similar victories for
the majority socialists ovor the indo-
Pyidents. 1
7
IN HOUSE TODAY 111
However Other Business Was
Scarce At This Morning's k
Meeting. '
Te house of representatives Is about
out of a job. That it, things are run
ning along so smoothly thut aftor Ilia
roll call this morning and the second
reading of bills by -.titles only, and n
no committees to report nnd no bills
coming up for final passage, there waa
nothing to do except t0 adjourn until
11118 I'llLTllUOil.
Members of tho house are taking
their jobs seriously. Early each morn- -itig
the majority of thein are at their
desks, perusing bills or dictating to
their stenographers, generally attrac
tive ones.
The mode of operation is such that
l.iii tin. Kaaii introduced, it ia
reforrcd to the proper committee. Tha
bill is again read the second timo ana
un.( tho commHtee lnake, a ro.
t . WU is out of 8 ght as far St
th c,y member is concerned. Tha
u" - .. ,i ; nm-
real work is of course done in the com
"ee rooms. .Bi
However, before the m o mm do
of this worming adjourn.d th following
re-ibillg were introduced.
(Continued oa page two)
ABE MARTIN
Th' purticr th handle th' poorer th'
umbrellor. No girl ever laced so tight
she couldn't eat throe dollars wort
after t' show.
BlUSIIITRODUCEfi
'