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Collection: Newspapers > Nevada City Grass Valley Nugget

August 9, 1949 (8 pages)

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4 +7 ® “a s y from people representing ‘banking interests of this country. _ person could go to the streams CONGRESSMAN ENGLE TESTIFIES FREE GOLD MARKET WOULD PUT CHECK ON GOVERNMENT POLICY Congressman Clair Engle,: member of the House of Representatives for this section of California, was among witnesses testifying before the Senate banking and currency committee hearings on the free gold trading act in Washington May 5-6. Mr. Chairman and members of the committee, I have a brief statement which I will submit for the record, reading part of it and submitting the rest, if that is agreeable. Though it is rather brief, I will read but a portion OL ite It is a little in anticipation of testimony which may be adduced later, but I asked to appear at this time because I am leaving town this afternoon and 1 was fearful I would not have au opportunity to appear before the committee otherwise. With the permission of the committee, after. reading a portion of the statement, I will extemporize briefly; I am sure my remarks will not take very long. I have before me the’ release of the Economists’ National ~ommittee on Monetary Policy signed by 48 members of that committee purporting to represent the views of this committee on the question of a free market for gold. I realize, Mr. Chairman, that probably this question could be discussed pro and con by economists for the next 20 years, and I think you all realize that as well as I, that they could so discuss it for that length of time without ever. getting to any substantial agreement among the economists. But it is important for this committee to know that there is very substantial support for this legislation among the people who make a study of this problem and the The Chairman: Mr. Searls, who testified previously to you and Senator Johnson, left as an exhibit for us to see, this container holding 100 ounces of fine natural gold. Is there much of that type of gold being mined in California? : Yes, sir; there is. That is the gold in its natural state, panned gold. That is correct, we do a good deal of-that kind of-mining. We also have deep mines, called quartz mining, and we have, the hydraulic mining operations, which is more or less this type (indicating exhibit). We do not use so much panning now. We did during the depression, though when everybody was broke. A and pan gold and sometimes a fellow would get enough to buy himself his beans and a sack of flour; and with a rifle to shoot game with, we would be able to get along pretty well, in my country. It has been only recently that we have known that we had a right to sell gold in its natural state freely on the market. That ruling from the treasury came two years ago, and it took a good deal of prying to! get it out of them. But since that time these sales have gone on. People are fearful that that regulation might be changed again. And that has had a great effect on the sale of natural gold. All they have to do in the treasury is just write a new regulation; they have that power. However, I have no indication from the Treasury that they do intend to change it. That is one reason why some of the major gold mining companies have not converted to a process which enables them to get gold in the natural state. It takes a good deal of. money to translate some of these gold mining operations to a system which will give gold in the natural state; that is, gold not subjected to chemicals or heat. And they could go ahead and do that, but they think that the Treasury might change the regulations and all their expense would be for nothing. Producing gold for $41 depends on how rich the ore is. That is the problem in gold mining always. If you have a rich mine you can produce pretty cheaply; if you have a poorer mine, it costs more, ° I think that in the best mines it would require pretty close to $41, and perhaps more than that. If you want to return to. the volume’ of gold production you used to have, you are going to have to raise the price of gold enough to take into consideration terials costs since we had that production before. And when you get a'rate which will enable the gold mining companies to meet that increase in labor and materials costs which have occurred since that time, then you will get from them the same amount of production. In other words, you have ore in the mine of a certain quality, and it takes so much money to get the gold out of that ore; and if you do not get a better price to meet your increased labor and materials costs, then you are not going to get that gold out—but if. the price-goes.up-and—you-can-meet those increased labor costs and those higher materials costs, then ore will come out of the ground. I had a bill in at the time, and perhaps you recall, when they had up the question of reducing the reserve behind the currency. I introduced a bill which would provide’exactly the same currency expansion . as would the reduced gold reserve, reduced from 45 per cent to 20 per cent. Now, Mr. Chairman, I am going to skip through this statement, the purpose of the statement being to indicate to you that there is a substantial element among the scholars of this Nation—and I do not presume to know much about economics or economists—but I am referring to the release which was sent out by the Economists’ National Committee on Monetary Policy.. That was signed by 48 members of that committee. This release indicates that the 48 economists whose names appear have no objection to a free gold market in a country whose currency is completely inconvertible. In these countries, according to the Economists’ National Committee on Monetary Policy, countries like Russia, Poland, France, Hungry, and Italy, it is perfectly proper and in no sense incompatible with the public interest for owners of gold and producers of gold to sell their product on the open market. and for individuals to buy and own such gold. This statement—and I have it. right before me—also indicates that these 48 economists are in favor of a free market for gold in any country whose currency is freely convertible into gold. In such a country, they say, with coins in cerculation, with paper money freely convertible into gold, it is perfectly proper for producers of gold to sell their product either to the mint or in a better market, if they can find (Continued on page 8) NID AWARDED $61,697 AND INTEREST CLAIMS FOR WARTIME DAMAGE United States Northern District Judge Del Lemmon of Sacramento signed final judgments in favor of the Nevada irrigation district for a total for more than $79,000 representing damages and interest as the result of the water utility suits against the federal government for damages to canals, ditches and watercourses at Camp Beale during World War II training period. The damage suits were tried in federal ‘court in Sacramento last May when a judgment of $55,760 was granted the district. Later this was increased by $5,937 for damages to streams, which had not been taken over by the army. Interest makes up the balance. The suit for the Nevada irrigation district was pressed by Sumner Mering, Sacramento; Lynne Kelly, Grass Valley; P. J. Minasian, Oroville, and Charles F. Metteer, San Francisco. SWIMMING POOL WILL CLOSE INDEFINITELY Verle “Puss” Gray, lifeguard at municipal pool, announced the following winners in the bike races held at the park yesterday morning. Bud Seeburg, under nine years, Gordon Peard, 10-13 years. Gene Seeburg, 14 and over. Janice Little, girls. Gray said another series of bike races will be held Saturday morning at 10 o’clock. The swimming pool will remain closed until medical authorities recommend -reopening, Gray said. Last weekend’ Park Commissioner and Gray had hoped to reopen Sunday morning, but the news of three new cases of polio prompted them to keep the pool the advances in labor and maclosed. ‘morrow. During his 18 to 24 Volume 22—No. 45 NEVADA CITY (Nevada County) CALIFORNIA Tuesday, August 9, 1949 HOMECOMING IN ALLEGHANY SET FOR AUG. 20-21 All roads in this district will lead to Alleghany next week when the mining community of Sierra county willbe host to-its 99th annual homecoming Satururday and. Sunday, Aug. 20-21, according to Thelma G. Carvin, general chairman. Highlight of the day will be the annual drilling contest, at which Hugh and Phil O’Donnell of the Kate Hardy mine have announced they will defend their championship. Other events will include races, pillow fights, tugO-war and many more. The community will set itself up for the big day with an allnight dance Saturday in the community hall. Alleghany had a community cleanup the latter part of last week and with its local citizens in 49er costumes, is ready for the big shindig. Helping Thelma Carvin in the homecoming preparation are Edith Hogan, co-chairman; Roberta Hart, Agnes Kamko, Wilford Hart, May Sbaffi, Walter Johnson, Rachel Kuhfeld, Joyce Clemo and Jacqueline Sthrel. DISTINGUISHED LOCAL MINER WILL OBSERVE BIRTHDAY TOMORROW A Nevada City miner of the 90’s who made a sort of a name for himself in mining circles, humanitarian works, and politics, will observe his 75th birthday tomonths stay in Nevada City he roomed at the Joseph D. Fleming home, 140 Boulder street, now occupied by Lamar Fleming. Lamar was a child of three or four years at the time the husky young Stanford graduate was mucking in the Reward mine and has only faint recollection of the man. _ Herbert Hoover also worked in the Mayflower and West Harmony mines, and it was at these places he showed the ability that won him a recommendation for a position of directing mining enterprises in Australia. Two years after that he accepted a $15,000a-year job in China, and was on his way toward a career that took him to the White House. Glenn M. Loney Wins Seale Scholarship at University California Glenn M. Loney, Nevada City, has been awarded a Henry W.
Seale scholarship by the University of California, the university committee on undergraduate scholarships announced today. This award is based primarily on scholastic achievement and represents a real distinction, the university announcement said. Loney is a senior student in the college of letters and science. First Quarter Sales Drop 10% From 1948 Taxable sales in Nevada county for the first quarter of 1949 showed a 10.24 percent decline over the same period of 1948, according to a report of the state board of equalization issued yesterday. Total taxable sales in Nevada county for the first quarter of this year were $2,911,600. The state as a whole declined 4.38 percent. Calaveras county showed the largest drop at 17.20 percent. Largest increase was recorded in Riverside county with 5.93 percent. SMALL BRUSH FIRES A small fire burned about, three acres of brush on upper Banner mountain Friday afternoon. Fire crews from Shady Creek, Higgins Corner. and Nevada City offices of the State division of forestry responded. The Nevada City fire department was called to the Frank Crampton home late last ThursNugget. CAN STALIN BE TRUSTED? Timely, authentic articles by Colonel James C. Crockett, U.S.A., retired former military attache at the U. S. embassy in Russia, and military attache at Berlin. Col. Crockett is a resident, of Nevada county, and has consented to write a series of articles on his interpretation of the Russian situation for The These articles answer many questions you and thousands of others have been asking about Russia. Col. Crockett is in a position to write authoritatively on what goes on in Russia, their attitude toward the United States, and the rest of the world. Don't miss this exceptionally timely series by a local man who has had first-hand experience with the Russian political leaders and has been in contact with the Russian man in the street. These articles appear every Friday in The Nugget. DAVID ELLIS, VICTIM OF POLIO, RETURNED BY AIRPLANE TO L. A. David Ellis, 17, Los Angeles youth who was visiting here at the Harold H. Riley home, was flown to Los Angeles Friday evening for treatment of polio. Ellis suffered an attack of the disease about 10 days ago. The aircraft, piloted by Jack Miller, Los Angeles, arrived here Friday about 5 p.m., and took off with the patient, his mother, Mrs. Walter Ellis, and a nurse, at 7 o'clock. _ Three additional cases of infantile paralysis have been diagnosed in western Nevada county over the weekend, with one patient removed to San Francisco, another to Seattle and one placed in Nevada county hospital. ‘Don Holt, 8=year-old visitor from Seattle, has been returned to his home for hospitalization and treatment. Sunday he was moved by ambulance to Davis and placed on a Southern Pacific train for_his home. «* Carel Odom, 9, residing:.in the Grass Valley area, has s¢en moved to the Nevada county hospital for treatment and observation. A third patient over the weekend was Don Clark, 30, Grass Valley store clerk, who has been taken to San Francisco for hospitalization. In view of the continued threat of polio the Nevada County Softball associaion has called off its schedule for this week. Nevada County Infantile Paralysis chapter officials said infantile paralysis reports, information and inquiries should be placed with Ray Hodge, secretary of the local chapter and department of motor vehicles office manager on the Nevada City highway. L. W. Kopp Escapes Death in Dynamite Blast in Plumas Co. L. W. Kopp, .Nevada City electrician, and his nephew, Fred Pitz Jr., Colfax, escaped injury when two men were killed by a dynamite explosion in the Jackass tunnel of a Feather river power project last week. The dynamite was exploded by lightning. Kopp was in the tunnel at the time of the explosion and young Pitz, on a vacation trip to visit his uncle, was near the tunnel entrance. Judd Cottage on Banner Mountain Road Destroyed The small cottage of Mrs. Lucille Judd, Scotts Flat dam road, was destroyed by fire late Thursday. Cause of fire was not determined, The state division of forestry sent three tanker trucks to the fire first spotted by Banner lookout. The walls and roof were a mass of flames before the trucks could make the five-mile trip. Mrs. Judd, who recently returned to Nevada City from Indiana, was alone in the cabin at the time of the fire. Motorists, traveling on the Scotts Flat road to the dam; happened along in time to assist Mrs. Judd, who has day to quell a small grass fire. COUNTY FARM MARKET Nevada City Apportioned $2,638.90 In Lieu Taxes Nevada City was apportioned $2,638.90 as its share of a $14,820,198 melon of motor vehicle license fee (in lieu tax) by the state controller’s office today. This represents revenues deposited in the state treasury during the period from April 1 to June 30, this year. Half of the melon was divided among incorporated cities and half among the counties. : Grass Valley received $6,282.62. Nevada county’s apportionment was $20,686.40. 4 LINCOLN MEN FINED FOR VIOLATING 1151 FISH AND GAME CODE Justice was swift and sure for four Lincoln men _ yesterday morning in Wheatland justice court. They were Gerald Webster, David Harmon, Frank Seriva and Edward Seriva, who pleaded guilty to violation of section 1151 of the California fish and game code, Justice of the Peace Burhl Gilpin, Wheatland, fined them $50 each and confiscated their guns. The four men were spotted Saturday night in the western end of Nevada county by Deputy Sheriff John Blackburn and Game Wardens Earl Hiscox and Edward Dennett in the act of driving along the McCourtney road without lights. The officers were on patrol. The men drove into Yuba county and the officers observed them searching a field with a spotlight. A search of the men revealed a rifle, a knife and a three-cell flashlight. The men were jailed in Wheatland at approximately midnight and went into justice court yesterday morning. Section 1151 of the fish and game code states that possession of a light not affixed to a vehicle, capable of throwing a beam. of light 32 feet or more, and a loaded rifle is prima facie evidence of violation of the section. The officers reported the men had a 50-candlepower spotlight on the car, a violation of the highway code. WILL OPEN WEDNESDAY Nevada county farm market will open Wednesday afternoons from 3 to 8 o’clock at its Olympia lake road site, starting tomorrow afternoon, according to William Ullrich, a director of the organization. The market has been receiving an increasing amount of fresh fruits and vegetables to offer Nevada county wives and produce users, Ullrich reported. NO PROTESTS AT CITY BOARD OF EQUALIZATION There were no protests of tax assessments presented at yesterday’s’ meeting of the Nevada City council meeting as a board of equalization ‘at the city hall, The ‘group adjourned until Saturday, 8 p.m., at which time protests of assessments will be heard.Attending yesterday’s’ meeting were Mayor Arthur Innis, Clerk George Calanan, and Councilmen FAIR TROPHIES DISPLAYED IN GRASS VALLEY The trophies to be awarded winners of the horse show at the Nevada county fair Aug. 25-8 are on display this week in the show windows of the Argall pharmacy, Grass Valley. Saturday they will be placed in the window of Bennetts & Steel, Grass Valley. Miss Edith Scott, secretary of the 17th District Agricultural association, which operates the fair, arinounced entries are being accepted for the horse show at the offices, 115 West Main, Grass Valley. The trophies were donated by Kyle Markets, Nevada City and Grass Valley, Bennetts and Steel, Moore and _ Bennallack Richfield service station, Williams Bros Stationery, Cramers Auto Exchange, Bill and Stans Cigar Store, Steel Supply company, Holbrooke hotel, Foote Electrical company, Bennett’s Bootery, Grass Valley Paint Store, Phoenix Drug Store, -Argall Pharmacy, Stennetts Market, Paul Viles, Grass Valley Liquor Store, Colfax Fruit Growers association, and the 17th District Agricultural association. Classes of the show include stock and trail horses, and children’s saddle mounts. _ Judging program of the Ne--; vada county fair has been announced as follows: -~Booths—10 a.m. Friday, Aug. 26. Judges will decide first the 4-Hbooths, second: one family farms, third: community booths. Score cards will be made out for each booth, original copy for office, duplicate to be handed to attendant in booth. 11:30 a.m. after completion of judging booths, lecture wili follow giving points judges approved of and disapproved of, followed by question and answer program. ‘ FLORICULTURE—10 a.m. Friday, Aug. 26, judging starts. 3 p.m. if judging is not completed it will cease and lecture will be given on judges findings in exhibits, followed by question and answer program. AGRICULTURE, AND HORTICULTURE—10 a.m. Friday, Aug. 26, judging will start in 4-H departments first, followed by senior departments. As soon as judging is completed in one of these departments lecture will follow on judges findings, followed by question and answer program, same procedure to be followed by other department judge upon completion of first judges program. HOME. ECONOMICS—10 a.m. Judging will start in 4-H department first, followed by senior department. 4 p.m. if judging is not completed it will cease for lecture on what judge finds right and what she finds wrong; followed by question and answer program. Judging in home economics will start in canned fruits, jams, jellies, preserves, marma-, — lades, followed by. pickles and relishes, canned vegetables and canned meats. LIVESTOCK—10 a.m. Judging starts in 4-H departments first, followed by senior departments. POULTRY—10 am. Aug. 26, Judging in 4-H poultry followed by explanation and question and answer program. RABBITS—4 p.m. Friday, Aug. 26, followed by explanation and question and answer program. GOLD—10 a.m. Friday, Aug. 26. Authority has been given and a contract signed to fence a large area of the Fair Grounds before or during the fair. High standard cyclone fence is to be placed about the area which is now in general use for fair purposes. The fence will measure 4500 linéal feet. This fence will have one 24foot.driveway, four 20-foot drivetrances. NEVADA CITY SCHOOL — BUDGET IS ADO There were: no objec ent at a public hearing of vada City Unified Se budget Saturday afte: been ill for some time. . H. F. Sofge and Leo Cullen. . ¢ : the budget was adopted : ways and four pedestrian en-