August 2, 1949 (8 pages)

~) se ) LIGHTNING SETS INNUMERABLE FOREST FIRES Fire fighting crews were being rushed to Nigger Jack hill on the Lowell Hill ridge east of here to" ‘tight a fire that broke out at noon, yesterday, according to Tahoe forest! service headquarters. The fire climaxes one of the worst weekends in recent years in the Tahoe forest. More than sixty fires resulted from a severe electrical storm that hit the forest Saturday. One hundred men went into the fire zone at 4 o’clock this morning to relieve 100 men who have been fighting fire since Saturday. The Nigger Jack hill fire at a late hour last night had destroyed approximately 80 acres of extremely heavy second growth timber. Slash added to the handicaps of controlling the blaze. In addition to equipment of the Tahoe forest, tankers and crews of the state division of forestry were battling the blaze. A crew of the state division of forestry was standing by on the south slope of the canyon to control any jump fires. The forest service set up a camp at Mule Springs near the scene of the fire and had depleted its White Cloud camp. Employees of the Tahoe Sugar Pine mills had also been rushed to combat the fire. Supervisor Guerdon Ellis and Assistant Supervisor Robert Dasmann were flown above the fire yesterday afternoon by George Endater. Ellis stated the Nigger Jack fire may not be of lightning origin. Keith Macdonald is in charge of the Sierraville camp which was augmented by men from the White Cloud camp. The’ forest service headquarters reported fires in the Bob Dell camp area were practically all out, The forest headquarters reported 33 fires started Saturday and 15 Sunday. California division of forestry responded to 19 fires, all of which were under control Sunday morning. Ranger Lewis Moran reported yesterday crews were still patrolling. ~ Radio and sound truck. appeals for volunteers brought approximately fifty district fire fighters to help the regular crews. An additional sixty men were recruited from Reno, Nev. Foresthill responded with 26 men. Suppression crews were formed in sawmill camps. Most of the Saturday fires were “snags” high in the trees, small, but needing immediate attention. Accompanying rain with the storm was insufficient ‘to extinguish the fires. All available personnel was in action and most of the personnel of the two forest units saw little sleep: DONNER MONUMENT TO BE DEVELOPED FOR PICNICKING, CAMPING Plans of the state division of beaches and parks for an expenditure of $130,475 to develop the Donner monument area for picnicking and camping have been filed with the state public works board. The public works board, headed by James S. Dean, state finance director, will act on the project at a meeting being held in Los Angeles. Funds for the development are available in the state budget but must be formally allocated to the division of beaches and parks by the public works board. The breakdown in the application for the Donner monument funds is as follows: yr Roads and parks, $38,250; water supply, $36,975; comfort stations, $10,200; cabins for caretakers, $17,000; camp, picnic and trailer units, $11,050; and ornamental fencing, $17,000. Meanwhile, Donald Rich, park ranger at Donner monument, reports that camping or fires are not being permitted. on the park grounds this year. The lack of adequate facilities to cope with either was cited as the reason for this temporary ban by. Rich. Graveside Services Friday for Younker Graveside funeral services were held Friday afternoon for Rudolph Younker, 86, former miner and farmer ,at Forest View cemtery. The Rev. Dahlgren E. Casey, pastor of the Methodist church, officiated. The aged man had no surviving relatives. He died Wednesday in the county hospital. Volume 22—No. 43 NEVADA CITY (Nevada enol CALIFORNIA Tuesday, August 2, 1949 FREE GOLD MARKET WOULD NOT BOOM PRICE OF GOLD SEARLS TESTIFIES BEFORE SENATORS Fred Searls, president of Newmont Mining Co., concludes his testimony before the U. S. senate banking and currency committee in Washington, D. C. May 5 and 6. Searls said that in his opinion the price of gold on a free market would not boom to unusually high figures. I fully believe that because of the importance of this to the South African Government that whatever we say about it or the economists say about it, or the Monetary Fund, says about it, that that is going to come about, that is the price is going to be raised. in sterling, and that is after first being raised in South African pounds—Whatever the price in dollars may be. I think this matter which Dr. Lawrence referred to yesterday is a matter of. some interest, and I would be very pleased to see this committee find out from the treasury whether actually the $80,000,000 worth of British sovereigns that the treasury assisted the oil company and the National COUNTY INCOME AT $21,201,000 UP 5.5 PER CENT Individual incomes of Nevada county’s civilian residents totalled $21,201,000 during 1948, a gain of 5.5 per cent over the previous year, and 86.1 per cent higher than the county’s income total of $11,395,000 during 1940— the research department of the California state chamber of commerce announced Monday. Dur-. ing these same periods, California’s statewide civilian incomes increased 4.9 per cent over 1947, and 200.6 per cent over 1940 levels. Fifteen mountain counties’ income in the same periods increased 5.2 per cent and 170.3 per cent, respectively. These statistics of individual income in all cases approximate personal net income before tax payments or other. payroll deductions. Civilian wage and salary incomes rose to $12,248,000 during last year, accounting for 58 per cent of income received by Nevada county residents, according to the state chamber’s research study. During 1940, the county’s wages and salaries totalled $7,370,000 and comprised 65 per cent of individual incomes. Nevada county proprietors’ incomes—net profits, commissions or fees received by the propri. etors in all non-incorporated farm, business or professional enterprises — reached $5,810,000 last year. In 1947, this amount was $5,421,000 while in 1940 the total was $1,659,000. Income from invested capital —corporate dividends, interest payments, royalties and net rentals—totalled $1,079,000 in this county during 1948. Compared . to $938,000 in 1947, and $1,128,000 in 1940, this shows the smallest percentage of. in¢crease of any income classification; both in the county and the state. As a result, income from dividends, interest and rents in Nevada county dropped from 10 per cent of total income in 1940 to 5 per cent in 1948. Other income of Nevada county residents — including pensions, payments to veterans, direct relief, compensation and social security payments—rose to $2,064,000 last year, as compared to $1,238,000 during 1940. California’s total civilian income was $5,549,300,000 in 1940. By 1947, total was $15,907,100000. Last year, statewide civilian income reached $16,680,100,000, a gain of 4.9. per cent over 1947, and 200.6 per cent above 1940. Last year’s civilian income total was $290,562,000 for the 15 mountain ‘counties — El Dorado, Lassen, Nevada, Placer, Siskiyou, Alpine, Amador, Calaveras, Mariposa, Modoc, Mono, Plumas, Sierra, Trinity and Tuolumne. This was $276,058,000 in 1947 and $107,460,000 in 1940. City bank to buy from Peron was purchased at par; that is to say, at the equivalent of $35 gold plus one-fourth of 1 per cent. I am assured that was so. But having been quite familiar in the government and out of the government with negotiations and the difficulties of dealing with the Argentinians, I think it would be a matter of. interest to this committee to find out from the treasury whether actually some concession of one kind or another was paid to the Argentine for this $80,000,000 worth of gold. I suspect, although I cannot give any grounds for it, that the government has paid to a foreign nation or permitted payment to a foreign nation of something more than $35 an ounce, although they will only pay their own citizens $35 an ounce. Cal Tex’s concession from Ibn Saud specified that he should obtain a royalty of 4 shillings gold per ton. The drafting of the conversion clause was faulty and there ensued a long argument between Ibn Saud and Cal Tex as to its interpretation. Ibn Saud took the position that he was entitled to payment ‘in British sovereigns and refused to accept $8.24 per sovereign, which would be the value at the official price of $35 for the gold content of a sovereign. Great premiums were being paid in the Middle East for gold sovereigns, and Ibn Saud wanted a value of $16 or $18. A long period of controversy ensued in which the oil company kept putting up dollars, which they were in effect lending Ibn Saud but not paying him, pending a final settlement. A deal was finally made. Aramco meanwhile having been created by the entrance of Jersey and Socony Vacuum, in which Ibn Saud agreed that he would take gold sovereigns if the oil company could supply them, and that if not, they could pay him on the basis of $12 to the sovereign. I think this works out a royalty of around 30 cents per barrel. The oil company made many efforts to acquire sovereigns but could not obtain them from the British or from the United States treasury. It picked up a few South African sovereigns, but these did not amount to much. Meanwhile the United States had acquired from -Argentina§ approximately $100,000,000 worth of British sovereigns. All these were acquired at the official price of $35 an ounce less one-fourth of 1 per céht: A stage was reached at which the Argentines approached the United States regarding the sale of another $10,900,000 worth of sovereigns. At this stage it was indicated to Aramco that it might ask the National City bank to communicate with the Central Bank of Argentina and offer to buy the soverigns at $35 an ounce plus one-fourth of 1 per cent. The Argentines were notified by our authorities that they would receive this offer, but before accepting it they insisted on assurances from the United States government authorities that the transaction was approved and within the scope of the monetary understandings. The net result was that the remaining British sovereigns in the possession of the Argentina Central Bank, amounting to some $80,000,000, were purchased by the National City Bank on this basis and were made available to the oil company on the basis of a certain handling charge and what amounts to an_ interest charge. The National City bank could not keep the sovereigns in the United States more than 24 hours. They could, however, take them into Canada for an indefinite stay, but they had to negotiate first for a guaranty that an export license would be made available to permit the ‘sovereigns to be withdrawn: for Ibn: ‘Saud. This negotiation was had successfully, and the Canadian authorities insisted that they be assured by the United States treasury that the transaction was! fully approved and within the (Contmued on page 8) LONG STEMMED BEAUTIES NEW YORK, N.Y.—Prize winners of these lovely Amazons is Helen Lukacs, 22, of. Chicago: Ill. (center), five feet, 11 inches in height. Madeleine Rainey, 20, of Philadelphia, Pa. (left), just six feet tall, won third position, while Virginia Gentili, also six feet tall (right), of New York City, was second prize winner. FIRE DESTROYS SPEAKER HOME HERE SATURDAY Fire of undetermined origin early Saturday morning destroyed the frame home of Richard J. and Bonnie Speaker, 132 Grove street, for an estimated loss’“of approximately .$6,000. to house and furnishings. The house and furnishings were insured. Mrs. Speaker discovered the fire shortly after midnight, when she was awakened by flames from the kitchen. She escaped from the house with only her nightgown and robe. Speaker was at work at the New Brunswick mine at the time. Mrs. Speaker purse but $22 in currency identification papers were ders. The only object in house to escape destruction a typewriter. The Nevada City volunteer fire department had the blaze under control eight minutes after arrival, but the flames had_ too great a start. The Speakers are at present living in a tourist camp on the Colfax road. They were undetermined about rebuilding plans. SCHOOL BUDGETS WILL BE AIRED THIS WEEK Public hearings of school budgets of the district will be held this week, according to Walter A. Carlson, county superintendent of schools. The first meeting was held last night at Columbia Hill school for the Cherokee district. The district’s budget calls for an outlay of $9,287.33 with a reserve of $50. Budget hearing for the Oakland district will be held tonight at 8 o’clock at Gold Flat school. Its budget calls for $29,323.41 with a reserve of $100. Tomorrow evening the board of trustees of North San Juan school district will meet for a public hearing of a budget calling for $8,574.94 expenditures and a reserve of $100. Saturday afternoon at 1 o’clock the board of trustees of Nevada City unified district will hold its public hearing of the budget. The elementary school’s expenditures total $123,340 plus $5,000 general and undistributed reserve. Major items of increase in the budget over last year is an’ approximate $4,000 for eanite) outlay. The high school’s budget calls for $89,875 expenditures and $8,000 general and undistributed resalvaged her and cinthe was _ serve. PAROLEE CAMP PROTESTED T0 SUPERVISORS The board of supervisors, at the start of its regular August meeting yesterday morning, was greeted by a delegation of 15 persons representing the Cherry Creek Acres district south of Grass Valley. The delegation registered strong opposition to a proposed parolee labor camp operated by the state department of corrections. The camp was proposed to be located at Friant tract. Gerald Simpson, one of the delegation, presented a petition signed by 96 residents, opposing the damp. Simpson said the many residents of the district would have no sense of security, and the camp would depreciate the value of the land in the development. C. Raymond Clar, chief deputy-of .the state division of forestry,.told the board, men in such a labor camp would be used all year around on forestry work, fire protection, and road and trail construction. Clar stated the record of similar camps in other counties has ‘been highly satisfactory. Malcolm. Harris, field representative of the state department of corrections, stated men convicted of minor offenses, or who have maintained fine records in prison, are placed in the outdoor camps. Warren Odell and Frank Rowe, supervisors, opposed the camp. Sheriff Richard W. Hoskins also opposed, stated he thought the camp would add a work load to his office. During the. afternoon session the board voted to oppose the parolee camp, Loehr dissenting. The board authorized Road ‘Commissioner> J; F. .O’Connor to file for monies under senate bill 1657. The board estimated $20,000 would reimburse the county for storm damaged roads. The board voted $2595 to the state division of forestry for fire prevention work in the county. The board authorized $2500 for a Nevada county exhibit at the California state fair, plus $1,000 for unforeseen expenditures. L. G. Lageson, county agricultural commissioner, is in charge of the exhibit. A representative of the Fairhaven home for girls, Sacramento, asked for contributory funds towards the operation of the home. Members of the board stated the budget had already been prepared and no funds were available. Edgar Bowden and Tavis Batista, on behalf of the American Legion post, asked the board to make a declaration of policy regarding the operation of the Veterans Memorial building. Board members advised they would reter it to the district attorney. Walter Carlson, superintendent of schools, presented a telegram from Sacramento junior college asking $1,000 additional tuition to care for Nevada county students. The board reported the request came too late for incorporation-into.the current budget. BOOTH SPACE BEING RESERVED FOR FAIR Commercial, industrial and, feature exhibitors are reserving . exhibit space at the Nevada County Fair with booth and exhibit construction expected to start next week, according to Miss Edith Scott, secretary of the 17th District Agricultural association, which conducts the fair. The fair is scheduled for Aug. 25-28 at the fairgrounds in Grass Valley. Work of cleaning the grounds is in progress now, according to Miss: Scott. The Nevada County Fair has gained distinction in the past as one of the few fairs presented in the open. The association has a construction program scheduled for the coming year, but this year’s fair will be the seventh annual outdoor exhibit since its resumption. — ¢ Hehtoink, { POLIO CASES REPORTED PAST. WEEK IN NC-GV Four cases of polio have been diagnosed in this district, according to health authorities. Two most seriously ill with the bulbar type are Beverly Friberg, 17, daughter of Mr. and Mrs. Clifford Hills, Indian Flat, and David Ellis, 17, Los Angeles, visiting here. The other cases are two boys near Grass Valley, aged 2 and 9: Miss Friberg was taken to the Children’s hospital, San Francisco, last Thursday and is partially paralyzed in her right arm and both legs. Mrs. Hills said last night her daughter’s condition was reported as satisfactory. The Ellis boy was visiting relatives living on the Colfax road when he was stricken. His parents are Mr. and Mrs. Walter Ellis of ‘the southern metropolis. Elmer Stevens, chairman of the Nevada County Foundation for Infantile Paralysis, said the boy will probably be taken to Los Angeles, depending upon the wishes of the parents. The two Grass Valley cases have been transferred to the Children’s hospital in San Francisco. , Stevens announced the local chapter held an emergency meeting Sunday to be prepared for any situation. He received word from the National Foundation’s area representative, Dan Marovich, assuring that any Nevada county cases would be hospitalized. Stevens said the local chapter has maintained two patients. in San Francisco since last October and that local resources have been depleted. Assurance by Marovich makes it possible for the local chapter to meet any. emergency. Dr. Vernon W. Padgett, Grass Valley, is county health ofifcer. Serving in that capacity for Grass Valley is Dr. E. M. Roesner, and City Clerk George Calanan functions for Nevada City. Dr. Padgett said there is no cause for alarm, but suggested children not be allowed to go swimming, and to stay out of crowds. Padgett said the early symptoms of polio usually include headaches _ often severe, and severe acute respiratory infection. The swimming pool will be closed, Lifeguard Verle Gray announced last night. He stated such was the recommendation of the county health: officer. PLANNERS ENDORSE AMPHITHEATER AND STREET LIGHT SURVEY Nevada City planning commission last night endorsed Frank Stewart’s recommendation for an amphitheater, and approved a survey of street lighting needs. In addition to a recommended site in Pioneer park, two acres of the Dunlap estate joining Pioneer park was considered as a possipility for a location. Stan Halls was appointed to contact the state veterans administration to enquire the cost of an outdoor theater now surplus at Camp Beale. The commission recommended that Larry Farrell be invited to the next meeting of the group to discuss a survey of city street lighting. The commission joined the Nevada county planning commission and joint municipals bodies to study means of furthering and exploiting the Nevada county golf course. The commission will meet the last Mondays of each month in the future. NATIONAL GUARDSMEN ‘OFF FOR TWO WEEKS OF SUMMER TRAINING The last detachment of 30 men of Company E, 184th Infantry, California National Guard, left Nevada City by bus at 9 o’clock Saturday evening, for Marysville. Joined there with a detachment of 10 men and equipment which left earlier in the day by truck the company entrained for Camp San Luis Obispo for two weeks . of summer training. It was touch and go for a while Saturday evening whether the detachment would leave or be called for forest fire fighting duty. The Tahoe national forest service was ealling for men te help fight several spot fires late © Saturday afternoon caused by —

~) se ) LIGHTNING SETS INNUMERABLE FOREST FIRES Fire fighting crews were being rushed to Nigger Jack hill on the Lowell Hill ridge east of here to" ‘tight a fire that broke out at noon, yesterday, according to Tahoe forest! service headquarters. The fire climaxes one of the worst weekends in recent years in the Tahoe forest. More than sixty fires resulted from a severe electrical storm that hit the forest Saturday. One hundred men went into the fire zone at 4 o’clock this morning to relieve 100 men who have been fighting fire since Saturday. The Nigger Jack hill fire at a late hour last night had destroyed approximately 80 acres of extremely heavy second growth timber. Slash added to the handicaps of controlling the blaze. In addition to equipment of the Tahoe forest, tankers and crews of the state division of forestry were battling the blaze. A crew of the state division of forestry was standing by on the south slope of the canyon to control any jump fires. The forest service set up a camp at Mule Springs near the scene of the fire and had depleted its White Cloud camp. Employees of the Tahoe Sugar Pine mills had also been rushed to combat the fire. Supervisor Guerdon Ellis and Assistant Supervisor Robert Dasmann were flown above the fire yesterday afternoon by George Endater. Ellis stated the Nigger Jack fire may not be of lightning origin. Keith Macdonald is in charge of the Sierraville camp which was augmented by men from the White Cloud camp. The’ forest service headquarters reported fires in the Bob Dell camp area were practically all out, The forest headquarters reported 33 fires started Saturday and 15 Sunday. California division of forestry responded to 19 fires, all of which were under control Sunday morning. Ranger Lewis Moran reported yesterday crews were still patrolling. ~ Radio and sound truck. appeals for volunteers brought approximately fifty district fire fighters to help the regular crews. An additional sixty men were recruited from Reno, Nev. Foresthill responded with 26 men. Suppression crews were formed in sawmill camps. Most of the Saturday fires were “snags” high in the trees, small, but needing immediate attention. Accompanying rain with the storm was insufficient ‘to extinguish the fires. All available personnel was in action and most of the personnel of the two forest units saw little sleep: DONNER MONUMENT TO BE DEVELOPED FOR PICNICKING, CAMPING Plans of the state division of beaches and parks for an expenditure of $130,475 to develop the Donner monument area for picnicking and camping have been filed with the state public works board. The public works board, headed by James S. Dean, state finance director, will act on the project at a meeting being held in Los Angeles. Funds for the development are available in the state budget but must be formally allocated to the division of beaches and parks by the public works board. The breakdown in the application for the Donner monument funds is as follows: yr Roads and parks, $38,250; water supply, $36,975; comfort stations, $10,200; cabins for caretakers, $17,000; camp, picnic and trailer units, $11,050; and ornamental fencing, $17,000. Meanwhile, Donald Rich, park ranger at Donner monument, reports that camping or fires are not being permitted. on the park grounds this year. The lack of adequate facilities to cope with either was cited as the reason for this temporary ban by. Rich. Graveside Services Friday for Younker Graveside funeral services were held Friday afternoon for Rudolph Younker, 86, former miner and farmer ,at Forest View cemtery. The Rev. Dahlgren E. Casey, pastor of the Methodist church, officiated. The aged man had no surviving relatives. He died Wednesday in the county hospital. Volume 22—No. 43 NEVADA CITY (Nevada enol CALIFORNIA Tuesday, August 2, 1949 FREE GOLD MARKET WOULD NOT BOOM PRICE OF GOLD SEARLS TESTIFIES BEFORE SENATORS Fred Searls, president of Newmont Mining Co., concludes his testimony before the U. S. senate banking and currency committee in Washington, D. C. May 5 and 6. Searls said that in his opinion the price of gold on a free market would not boom to unusually high figures. I fully believe that because of the importance of this to the South African Government that whatever we say about it or the economists say about it, or the Monetary Fund, says about it, that that is going to come about, that is the price is going to be raised. in sterling, and that is after first being raised in South African pounds—Whatever the price in dollars may be. I think this matter which Dr. Lawrence referred to yesterday is a matter of. some interest, and I would be very pleased to see this committee find out from the treasury whether actually the $80,000,000 worth of British sovereigns that the treasury assisted the oil company and the National COUNTY INCOME AT $21,201,000 UP 5.5 PER CENT Individual incomes of Nevada county’s civilian residents totalled $21,201,000 during 1948, a gain of 5.5 per cent over the previous year, and 86.1 per cent higher than the county’s income total of $11,395,000 during 1940— the research department of the California state chamber of commerce announced Monday. Dur-. ing these same periods, California’s statewide civilian incomes increased 4.9 per cent over 1947, and 200.6 per cent over 1940 levels. Fifteen mountain counties’ income in the same periods increased 5.2 per cent and 170.3 per cent, respectively. These statistics of individual income in all cases approximate personal net income before tax payments or other. payroll deductions. Civilian wage and salary incomes rose to $12,248,000 during last year, accounting for 58 per cent of income received by Nevada county residents, according to the state chamber’s research study. During 1940, the county’s wages and salaries totalled $7,370,000 and comprised 65 per cent of individual incomes. Nevada county proprietors’ incomes—net profits, commissions or fees received by the propri. etors in all non-incorporated farm, business or professional enterprises — reached $5,810,000 last year. In 1947, this amount was $5,421,000 while in 1940 the total was $1,659,000. Income from invested capital —corporate dividends, interest payments, royalties and net rentals—totalled $1,079,000 in this county during 1948. Compared . to $938,000 in 1947, and $1,128,000 in 1940, this shows the smallest percentage of. in¢crease of any income classification; both in the county and the state. As a result, income from dividends, interest and rents in Nevada county dropped from 10 per cent of total income in 1940 to 5 per cent in 1948. Other income of Nevada county residents — including pensions, payments to veterans, direct relief, compensation and social security payments—rose to $2,064,000 last year, as compared to $1,238,000 during 1940. California’s total civilian income was $5,549,300,000 in 1940. By 1947, total was $15,907,100000. Last year, statewide civilian income reached $16,680,100,000, a gain of 4.9. per cent over 1947, and 200.6 per cent above 1940. Last year’s civilian income total was $290,562,000 for the 15 mountain ‘counties — El Dorado, Lassen, Nevada, Placer, Siskiyou, Alpine, Amador, Calaveras, Mariposa, Modoc, Mono, Plumas, Sierra, Trinity and Tuolumne. This was $276,058,000 in 1947 and $107,460,000 in 1940. City bank to buy from Peron was purchased at par; that is to say, at the equivalent of $35 gold plus one-fourth of 1 per cent. I am assured that was so. But having been quite familiar in the government and out of the government with negotiations and the difficulties of dealing with the Argentinians, I think it would be a matter of. interest to this committee to find out from the treasury whether actually some concession of one kind or another was paid to the Argentine for this $80,000,000 worth of gold. I suspect, although I cannot give any grounds for it, that the government has paid to a foreign nation or permitted payment to a foreign nation of something more than $35 an ounce, although they will only pay their own citizens $35 an ounce. Cal Tex’s concession from Ibn Saud specified that he should obtain a royalty of 4 shillings gold per ton. The drafting of the conversion clause was faulty and there ensued a long argument between Ibn Saud and Cal Tex as to its interpretation. Ibn Saud took the position that he was entitled to payment ‘in British sovereigns and refused to accept $8.24 per sovereign, which would be the value at the official price of $35 for the gold content of a sovereign. Great premiums were being paid in the Middle East for gold sovereigns, and Ibn Saud wanted a value of $16 or $18. A long period of controversy ensued in which the oil company kept putting up dollars, which they were in effect lending Ibn Saud but not paying him, pending a final settlement. A deal was finally made. Aramco meanwhile having been created by the entrance of Jersey and Socony Vacuum, in which Ibn Saud agreed that he would take gold sovereigns if the oil company could supply them, and that if not, they could pay him on the basis of $12 to the sovereign. I think this works out a royalty of around 30 cents per barrel. The oil company made many efforts to acquire sovereigns but could not obtain them from the British or from the United States treasury. It picked up a few South African sovereigns, but these did not amount to much. Meanwhile the United States had acquired from -Argentina§ approximately $100,000,000 worth of British sovereigns. All these were acquired at the official price of $35 an ounce less one-fourth of 1 per céht: A stage was reached at which the Argentines approached the United States regarding the sale of another $10,900,000 worth of sovereigns. At this stage it was indicated to Aramco that it might ask the National City bank to communicate with the Central Bank of Argentina and offer to buy the soverigns at $35 an ounce plus one-fourth of 1 per cent. The Argentines were notified by our authorities that they would receive this offer, but before accepting it they insisted on assurances from the United States government authorities that the transaction was approved and within the scope of the monetary understandings. The net result was that the remaining British sovereigns in the possession of the Argentina Central Bank, amounting to some $80,000,000, were purchased by the National City Bank on this basis and were made available to the oil company on the basis of a certain handling charge and what amounts to an_ interest

charge. The National City bank could not keep the sovereigns in the United States more than 24 hours. They could, however, take them into Canada for an indefinite stay, but they had to negotiate first for a guaranty that an export license would be made available to permit the ‘sovereigns to be withdrawn: for Ibn: ‘Saud. This negotiation was had successfully, and the Canadian authorities insisted that they be assured by the United States treasury that the transaction was! fully approved and within the (Contmued on page 8) LONG STEMMED BEAUTIES NEW YORK, N.Y.—Prize winners of these lovely Amazons is Helen Lukacs, 22, of. Chicago: Ill. (center), five feet, 11 inches in height. Madeleine Rainey, 20, of Philadelphia, Pa. (left), just six feet tall, won third position, while Virginia Gentili, also six feet tall (right), of New York City, was second prize winner. FIRE DESTROYS SPEAKER HOME HERE SATURDAY Fire of undetermined origin early Saturday morning destroyed the frame home of Richard J. and Bonnie Speaker, 132 Grove street, for an estimated loss’“of approximately .$6,000. to house and furnishings. The house and furnishings were insured. Mrs. Speaker discovered the fire shortly after midnight, when she was awakened by flames from the kitchen. She escaped from the house with only her nightgown and robe. Speaker was at work at the New Brunswick mine at the time. Mrs. Speaker purse but $22 in currency identification papers were ders. The only object in house to escape destruction a typewriter. The Nevada City volunteer fire department had the blaze under control eight minutes after arrival, but the flames had_ too great a start. The Speakers are at present living in a tourist camp on the Colfax road. They were undetermined about rebuilding plans. SCHOOL BUDGETS WILL BE AIRED THIS WEEK Public hearings of school budgets of the district will be held this week, according to Walter A. Carlson, county superintendent of schools. The first meeting was held last night at Columbia Hill school for the Cherokee district. The district’s budget calls for an outlay of $9,287.33 with a reserve of $50. Budget hearing for the Oakland district will be held tonight at 8 o’clock at Gold Flat school. Its budget calls for $29,323.41 with a reserve of $100. Tomorrow evening the board of trustees of North San Juan school district will meet for a public hearing of a budget calling for $8,574.94 expenditures and a reserve of $100. Saturday afternoon at 1 o’clock the board of trustees of Nevada City unified district will hold its public hearing of the budget. The elementary school’s expenditures total $123,340 plus $5,000 general and undistributed reserve. Major items of increase in the budget over last year is an’ approximate $4,000 for eanite) outlay. The high school’s budget calls for $89,875 expenditures and $8,000 general and undistributed resalvaged her and cinthe was _ serve. PAROLEE CAMP PROTESTED T0 SUPERVISORS The board of supervisors, at the start of its regular August meeting yesterday morning, was greeted by a delegation of 15 persons representing the Cherry Creek Acres district south of Grass Valley. The delegation registered strong opposition to a proposed parolee labor camp operated by the state department of corrections.. The camp was proposed to be located at Friant tract. Gerald Simpson, one of the delegation, presented a petition signed by 96 residents, opposing the damp. Simpson said the many residents of the district would have no sense of security, and the camp would depreciate the value of the land in the development. C. Raymond Clar, chief deputy-of .the state division of forestry,.told the board, men in such a labor camp would be used all year around on forestry work, fire protection, and road and trail construction. Clar stated the record of similar camps in other counties has ‘been highly satisfactory. Malcolm. Harris, field representative of the state department of corrections, stated men convicted of minor offenses, or who have maintained fine records in prison, are placed in the outdoor camps. Warren Odell and Frank Rowe, supervisors, opposed the camp. Sheriff Richard W. Hoskins also opposed, stated he thought the camp would add a work load to his office. During the. afternoon session the board voted to oppose the parolee camp, Loehr dissenting. The board authorized Road ‘Commissioner> J; F. .O’Connor to file for monies under senate bill 1657. The board estimated $20,000 would reimburse the county for storm damaged roads. The board voted $2595 to the state division of forestry for fire prevention work in the county. The board authorized $2500 for a Nevada county exhibit at the California state fair, plus $1,000 for unforeseen expenditures. L. G. Lageson, county agricultural commissioner, is in charge of the exhibit. A representative of the Fairhaven home for girls, Sacramento, asked for contributory funds towards the operation of the home. Members of the board stated the budget had already been prepared and no funds were available. Edgar Bowden and Tavis Batista, on behalf of the American Legion post, asked the board to make a declaration of policy regarding the operation of the Veterans Memorial building. Board members advised they would reter it to the district attorney. Walter Carlson, superintendent of schools, presented a telegram from Sacramento junior college asking $1,000 additional tuition to care for Nevada county students. The board reported the request came too late for incorporation-into.the current budget. BOOTH SPACE BEING RESERVED FOR FAIR Commercial, industrial and, feature exhibitors are reserving . exhibit space at the Nevada County Fair with booth and exhibit construction expected to start next week, according to Miss Edith Scott, secretary of the 17th District Agricultural association, which conducts the fair. The fair is scheduled for Aug. 25-28 at the fairgrounds in Grass Valley. Work of cleaning the grounds is in progress now, according to Miss: Scott. The Nevada County Fair has gained distinction in the past as one of the few fairs presented in the open. The association has a construction program scheduled for the coming year, but this year’s fair will be the seventh annual outdoor exhibit since its resumption. — ¢ Hehtoink, { POLIO CASES REPORTED PAST. WEEK IN NC-GV Four cases of polio have been diagnosed in this district, according to health authorities. Two most seriously ill with the bulbar type are Beverly Friberg, 17, daughter of Mr. and Mrs. Clifford Hills, Indian Flat, and David Ellis, 17, Los Angeles, visiting here. The other cases are two boys near Grass Valley, aged 2 and 9: Miss Friberg was taken to the Children’s hospital, San Francisco, last Thursday and is partially paralyzed in her right arm and both legs. Mrs. Hills said last night her daughter’s condition was reported as satisfactory. The Ellis boy was visiting relatives living on the Colfax road when he was stricken. His parents are Mr. and Mrs. Walter Ellis of ‘the southern metropolis. Elmer Stevens, chairman of the Nevada County Foundation for Infantile Paralysis, said the boy will probably be taken to Los Angeles, depending upon the wishes of the parents. The two Grass Valley cases have been transferred to the Children’s hospital in San Francisco. , Stevens announced the local chapter held an emergency meeting Sunday to be prepared for any situation. He received word from the National Foundation’s area representative, Dan Marovich, assuring that any Nevada county cases would be hospitalized. Stevens said the local chapter has maintained two patients. in San Francisco since last October and that local resources have been depleted. Assurance by Marovich makes it possible for the local chapter to meet any. emergency. Dr. Vernon W. Padgett, Grass Valley, is county health ofifcer. Serving in that capacity for Grass Valley is Dr. E. M. Roesner, and City Clerk George Calanan functions for Nevada City. Dr. Padgett said there is no cause for alarm, but suggested children not be allowed to go swimming, and to stay out of crowds. Padgett said the early symptoms of polio usually include headaches _ often severe, and severe acute respiratory infection. The swimming pool will be closed, Lifeguard Verle Gray announced last night. He stated such was the recommendation of the county health: officer. PLANNERS ENDORSE AMPHITHEATER AND STREET LIGHT SURVEY Nevada City planning commission last night endorsed Frank Stewart’s recommendation for an amphitheater, and approved a survey of street lighting needs. In addition to a recommended site in Pioneer park, two acres of the Dunlap estate joining Pioneer park was considered as a possipility for a location. Stan Halls was appointed to contact the state veterans administration to enquire the cost of an outdoor theater now surplus at Camp Beale. The commission recommended that Larry Farrell be invited to the next meeting of the group to discuss a survey of city street lighting. The commission joined the Nevada county planning commission and joint municipals bodies to study means of furthering and exploiting the Nevada county golf course. The commission will meet the last Mondays of each month in the future. NATIONAL GUARDSMEN ‘OFF FOR TWO WEEKS OF SUMMER TRAINING The last detachment of 30 men of Company E, 184th Infantry, California National Guard, left Nevada City by bus at 9 o’clock Saturday evening, for Marysville. Joined there with a detachment of 10 men and equipment which left earlier in the day by truck the company entrained for Camp San Luis Obispo for two weeks . of summer training. It was touch and go for a while Saturday evening whether the detachment would leave or be called for forest fire fighting duty. The Tahoe national forest service was ealling for men te help fight several spot fires late © Saturday afternoon caused by —