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Weather Forecast Partly cloudy, brief showers this afternoon and tonight. High about 88. Low tonight, 74. Cloudy tomorrow, warm, scattered aft ernoon showers. 'Full report on Page A-2.1 Midnight, 77 6 a.m. ---75 11 a.m. --.80 2 a.m. -_-77 8 a.m. —75 Noon-84 4 a.m. 75 10 a.m. —78 1 p.m. 84 Lote New York Morkets, Poqe A-23. Guide for Readers Pate Amusements ..B-14 Classified -B-16-21 Comics _B-22-23 Editorial_A-12 Edito'al Articles A-13 Finance _A-23 Pace Lost and Found, A-3 Obituary-A-14 Radio -B-23 Sports_A-19-21 Women's Section B-3-6 An Associated Press Newspaper 97th Year. No. 210. Phone ST. 5000 irk WASHINGTON, D. C., WEDNESDAY, AUGUST 3, 1949—FORTY-EIGHT PAGES. City Home Delivery, Daily and Sunday. $1.20 a Month, when 6 K r'TT'N’TS Sundays. $1.30. Ni*ht Final Edition. *1.30 and $1.40 per Montn ** VDHIO $125 Pay Increase for 850,000 Classified Workers, Raise for Top Executives Voted by Senate Unit _ 4-. Legislative Aides To Be Covered in Separate Bill By Joseph Young The Senate Civil Service Com mittee today approved the $125 average pay raise bill for the Gov ernment's 850,000 classified em ployes and also approved sub stantial salary increases for the Government's top executives. The measures were reported as separate bills. The committee also authorized Senator Long, Democrat, of Louisiana, chairman of the pay subcommittee, to in troduce a bill later today granting a $120 pay raise to all legislative employes. Senator Long's measure also is expected to include provisions in creasing the salaries of admin istrative assistants to members of Congress from $10,300 to $12,000 a year, and secretaries from $7,500 to $9,000 a year. Professional staff members on Capitol Hill would have their pay increased from $10,330 to $12,000 a year as well. Would Include District Employes. The pay reclassification meas ure would provide an average SI25-a-year pay increase for the Government's classified employes -icluding District government classified workers. Some employes in the upper sal ary brackets would get consider ably more—as much as $670 a year, but most Federal employes would receive pay increases around the $125 mark. The schedule showing how each Federal classi fied employe would fare under the pay measure was carried in The Star's Federal Spotlight col umn on Wednesday, July 20. This schedule, indorsed by Senator Long's subcommittee, was ap proved today by the full commit tee. The reclassification bill also would abolish the Government’s present efficiency rating system and substitute a more simplified one, with employes rated as either satisfactory or unsatisfactory. Those workers who have out . standing records could be graded as “outstanding." Cash Awards Provided. Also included in the measure is a provision whereby supervisors would be given cash awards for operating their units efficiently with the least possible eost. Com mitee members say the purpose of this proviso is to encourage the Government to get rid of unnecessary employes. The top bracket bill approved by the committee today is sim ilar to the measure approved by the House several weeks ago. Cabinet members would have their salaries increased from the present $15,000 rate to $25,000 a year. Undersecretaries would re ceive $20,000, while various agency and bureau heads, who now re ceive $10,000 salaries would get about $15,000 to $18,000 a year. The number of other agency officials not included in the top racket bill were placed in the eclassiflcation measure, w'hich vould give them salaries of $15,000 i year. The general reclassiflca ion bill raises the Federal pay wiling . for classified employes .rom $10,330 to $15,000 a year. The House Civil Service Com mittee has just completed hear mgs on general Federal pay re lassiflcation legislation and is ex pected to report its bill by the end of the week. Korean Goes on Trial As Kim's Assassin •y the Associated Press SEOUL, Korea, Aug. 3.—Lt. Ahn Ooo Hi w#nt on trial today on a harge of assassinating Kim Koo, President of the Korean govern ment-in-exile in China during World War H. Kim was killed June 26. Brig. Gen. Won Young Duk pre sided at the trial, which opened before 400 spectators. The prosecution charges Ahn killed Kim when he learned the political leader sought to unseat President Syngman Rhee of the Korean Republic. King Haakon 77 Today OSLO. Aug. 3 (JP).—King Haa kon VII of Norway celebrated his 77th birthday anniversary today at his summer palace outside Oslo. Late News Bulletin D. C. Man's Body Found CHESAPEAKE BEACH, Md. UP).—The body of Ray W. Smith, 31, of 1732 Calvert street N.W., Washington, was found floating off a break water today. Dr. Hugh Ward, Calvert County medical exam iner, said there were no marks •f violence on the body. Aga Khan Robbed of $450,000 By 4 Men Wielding Tommyguns He and Wife Waylaid Outside Riviera Villa as They Leave to Visit Aly at Deauville By the Associated Press CANNES, France, Aug. 3.—The Aga Khan's wife said today that four bandits robbed her and her husband of jewels and money worth $450,000. . The theft occurred at noon as the Aga Khan and the Begum, with a maid and a chauffeur, left their Riviera villa here en route to Deauville to visit their son. Aly Khan, and daughter-in-law, Rita Hayworth. The Begum said four shabbily dressed men. speaking with Span ish or Italian accent and carrying tommy guns, got away with one 25-carat diamond worth 25.000,000 francs. The men. who had been waiting in a black automobile, approached the car, holding their guns menac ingly and said: "Keep quiet. Don't make any noise. Hand over those bags and there won't be any trouble.” "We gave them three large handbags that were in the car." said the Begum, whose husband is one of the world's richest men She said the bags contained their passports and plane tickets for Deauville and she didn't know whether she and her husband would go to Deauville tomorrow. The Begum said she and her husband were offering 5,000,000 francs to any one who would iden tify the bandits. She said the bandits didn't take some less costly jewelry she was wearing. 4 Hold Up Jewelry Store Near Prince Aly's Villa DEAUVILLE. France, Aug. 3 (JP). —Four masked men, armed with submachine guns, yesterday held up the Van Cleef & Arpels jew elry store here and escaped in a waiting car. Newspapers estimated value of the 32 pieces of jew-elry lost at 50,000,000 to 100.000.000 francs ($160,000 to $320.0001. The Van Cleef and Arpels store is located less than a block from the villa occupied by Prince Aly Khan and his wife, Rita Hay worth. Britain Charges Reds Organize New Slavery By 'Mass Production’ 10,000,000 Declared Held In Bondage; Russians Assail 'Smokescreen' By the Associated Fra*• GENEVA, Switzerland, Aug. 3 —B Stain formally accused Rus sia today of maintaining 10,000 - 009 slav*; laborers in “a new slav ery organized cn a mass produc tion basis.” Russia retorted in the United Nations Economic and Social Council here that the British charge simply was a smokescreen to cover up Britain's own labor troubles. The United States proposed ap pointment of a U. N. commission of 11 to inquire into “the nature and extent of forced labor” throughout the world. The Amer ican resolution suggested em phasis in such an inquiry be placed on “situations involving large numbers of persons or wide spread practices of forced labot.” The British charges were made by Corley Smith, British delegate who presented what he described as a copy of a “corrective labor codex of the Russian Soviet Fed erated Socialist Republic” on rules for labor camps in the So viet Union. The R. S. F. S. R. is Russia's largest republic, with Moscow as its capital. Insists System Is Humane. Russia retorted that the codes presented by Britain actually rep | resented a humane system with i “re-education of the people’’ as one of its aims. The Soviet dele gate said the code's object was to place persons sentenced to penal servitude “in conditions which make .it impossible for them to do anything hostile to Soviet society.’’ Mr. Smith had demanded that the Russian delegate give a straight answer, yes or not, whether the Soviet Union would permit an investigation. Soviet Delegate Amasasp Aru tiunian countered with the charge that Britian's Labor government had initiated a hostile campaign against the Soviet Union to de tract attention from its own economic difficulties. He said the corrective labor codex quoted by Mr. Smith was published in England in an Eng lish translation in 1936 and de clared: “In trying to make us believe it has unearthed a sensation the United Kingdom does nothing but follow the usual campaign based (See SLAVES. Page A-6.) House Hearings Planned On Red Influence in Plants The House Committee on Un American Activities announced today it will hold hearings soon on Communist influence in “vital and strategical industrial plants” in the Pittsburgh area. A committee announcement stated information had been re ceived indicating substantial Com munist activity in units of the United Electrical, Radio and Ma chine Workers’ Union (CIO) in and near Pittsburgh. The hearings, it was explained, will be conducted “with a view of I determining whether legislation should be proposed requiring in dustrial plants engaged in certain work for the Government to set up security standards for the protec tion of Government secrets.” 9 Senate ECA Bill Held Barring Reich Shift From Rule by Army State Department Protests Dropping of Amendment Approved by House ly th« Atiociattd Pr*n The State Department has pro tested to Senate leaders that the! new foreign aid bill would block the Army from turning over Ger man occupation duties to civilian control. This surprise development cropped up as the Senate met to try to untangle the snarl over the $5,647,724,000 foreign aid measure. Democratic Leader Lucas said! the State Department protested the action of the Senate Appropri ations Committee in stripping House amendments from the bill. He predicted these amendments will be restored to eliminate this threat. But until the action is taken, the transfer, scheduled to take place in a few weeks, would be impossible, he added. Shows Memorandum. Senator Lucas showed reporters a memorandum from the State Department saying the commit tee's action “would block current plans for the transfer to the De partment of State of responsibility for the government of Germany.” The memorandum added the President would be denied the au thority to transfer any of the functions or funds given the Army to any other Government agency. The foreign aid measure was "(See FOREIGN AIdTPage A-4.) Pilot Killed as Plane Falls Into Yard of House By the Associated Press LAWRENCE, N. Y., Aug. 3.—A plane crashed into the yard of S. Ralph Lazrus, president of the Ben Rus Watch Co., today, killing the pilot. The identity of the pilot and the type of plane was n(rt immedi ately known. Mrs. Lazrus said she was giving her 16-year-old daughter, Peggy, some medicine in the kitchen of their home when “there was a crash that blew the medicine out of my hand.” She said a nearby house caught Are. She was not sure whether there was an explosion after the plane hit. The plane tore a-huge hole in the ground and sheared off some trees, Mrs. Lazrus said. Denfeld Expects Atlantic Defense Force This Year U. S. Chiefs of Staff Meet 3 Hours With British Leaders By the Associated Press LONDON. Aug. 3.—A defense organization under the Atlantic treaty “might be set up before the end of the year,” Admiral Louis E. Denfeld, American chief of naval operations, said today. That brief statement from the naval member of the American Joint Cniefs of Staff was the first direct indication of their progress in meetings with the military lead ers of the pact nations: Admiral Denfeld spoke after he. Army Gen. Omar N. Bradley and Air Force Gen. Hoyt S. Vanden berg met for more than three hours with the British chiefs of staff. Asked how soon a defense mechanism for the Atlantic pact could be established, Admiral Denfeld replied, “I should think it will not be too long. It might be before the end of the year." Responsible officials said the American chiefs want Britain and other pact partners to prom ise prompt, large-scale military unity in a common defense pro gram. The American groups arrived last night from Germany for two days of conferences in London before going to Paris late tomor row. Admiral Denfeld told newsmen the British and Americans weie considering how the 12-nation At lantic alliance would absorb the military staff already set up by the five-nation Western European Union. Britain. Prance, Belgium. Holland and Luxembourg last year established a joint military com mittee headed by Field Marshal Viscount Montgomery. Full Merger Sought. Well-informed sources here said the American chiefs of staff want the five Western Union powers to merge their forces and defense re sources Into a tightly knit Atlantic pact framework. Some reluctance against such a full-scale merger has been unoffi cially reported among the Western Union partners. The informants said American military chiefs hope to get an agreement on unification to allry any doubt in Congress that the Atlantic treaty partners will pull together in case of aggression. Peril to Arms Aid Feared. Admiral Denfeld, Gen. Bradley and Gen. Vandenberg have care fully and specifically said their current tour does not include dis cussion of President Truman’s $1,450,000,000 arms aid program because it is still being debated by Congress. But other officials here feel that failure to agree on unification would jeopardize con gressional approval of armaments aid. Admiral Denfeld was asked by reporters last night what effect the Atlantic pact would have on Field Marshal Viscount Montgom ery's five-power military set up. ‘‘I don’t know” he replied. 7see~STAFT~CHIEFS, Page A-5.) $50,000 Cargo Burns On President Liner By the Associated Press HONG KONG. Aug. 3.—Fire de stroyed about $50,000 worth of cargo today on the 15,450-ton ship President Wilson of the American President Lines. More than 2,000 bags of dried coconut burned. No damage was suffered by the ship itself. The fire is believed to have started from sparks from a welding torch. Girl Rescued Twice From River Within Minutes on NightCruise A Navy Department clerk, Miss Pauline Baker, 21, was saved twice from the Georgetown Chan nel within a matter of minutes early today when she fell off a cabin cruiser and then was in a boat that capsized with three male rescuers. The men are Franklin B. Moore, 21, an insurance man, of 1426 Twenty-first street N.W.; Thomas H. Stephan, 21, a book keeper, of 1740 P street N.W., and Leslie Aaron, skipper of the cabin cruiser. Miss Baker, Mr. Moore and Mr. Stephan, with three other friends, had gone for a night ride aboard the 46-foot cabin cruiser. When they returned, they anchored off Hains Point and prepared to go! ashore in a 14-foot outboard mo tor boat. "I stepped from the yacht onto the boat,” Miss Baker said. “As I did, the boat began to slip away from the yacht. I fell in the water.” Mr. Aaron jumped into the wa ter and helped Miss Baker into the bo&t. Mr. Moore and Mr. Ste phan already were in the small boat. Then Mr. Aaron started to step back onto the yacht. As he did, he lost his balance. The small boat capsized, throwing him, Miss Baker, and the others, into the water. They all helped the water soaked Miss Baker back on the cruiser. . In the meantime, some one on shore called harbor police. The group was taken ashore in a police boat. f YOU KNOW, ^ ( HOWARD._HE ( r REALLY DIDN'T < ACT AWFULLY/ SURPRISED < i WHEN WE j I ACCEPTED\k — —~~~—j*"J . Fancy, Rail Official, Appointed To Head Reserve Policy Board Unification Bill Waits Truman's Signature After House Passage By the Associated Pres* William T. Faricy. president of the Association of American Rail roads, today was named head of the National Military Establish ments new Civilian Reserve Pol icy Board. Mr. Faricy’s appointment by Secretary of Defense Johnson was another step in efforts to strength en organization of the Nation’s military setup. Legislation giving the Defense Secretary additional powers in consolidating the armed forces was passed by Congress and sent to the White House yesterday. Only President Truman’s signa ture is needed to make the meas ure law'. Mr. Johnson's announcement said the Civilian Reserve Policy Board will co-ordinate the poli cies and programs of the Organ ized Reserve. This includes the WILLIAM T. FAR1CY. ~Star Staff Photo. Reserve of the Army. Navy and Air Force and of the National Guard, both ground 4nd air. Other similar moves are ex (8ee~ UNIFICATION, Page A-5.1 Drafters of Arms Bill Called by Committee As Revision Nears Open Hearings Delayed; Two Who Helped Prepare Program to Testify By J. A. O'Leory The administration’s $1,450,000, 000 foreign arms program is ex pected to undergo substantial changes before it reaches either the House or Senate. The House Foreign Aflairs Com mittee took time out from public hearings today to go into a closed huddle with experts who helped draft the bill. At the same time, Senate leaders put off until Mon day the public hearings they had intended to start today. At both ends of the Capitol there were clear signs the scope of the bill will be narrowed down and, in all probability, the amount reduced. Gen. Lemnitzer to Testify. “We have not yet received the answers to the questions bother ing us,” said Representative Vorys, Republican, of Ohio. "\Ve hope to get down to brass tacks now.” He presumably had in mind to day’s closed session with Maj. Gen. Lyman Lemnitzer of the Army and Dr. Lloyd V. Berkner of the State Department. Committee .sources said they helped draft the bill in the departments. Mr. Vorys believes an interim program, cut to about half the administration figure, would be sufficient until the North Atlantic pact is in full force. He also wants guarantees that arms sent to Western Europe will be used in a co-ordinated defense system if war comes. Vandenberg Clarifies Stand. Senators Vandenberg of Mich igan and Dulles of New York. Republican leaders of b‘ partisan foreign policy, also have taken a stand for a moderate interim pro gram at this session, without in dicating any figures. Their position is understood to have been made clear to adminis tration officials in yesterday’s (See ARMS, Page M5.) Fire Prevention Week Fixed by President President Truman has called on the Nation to observe the week beginning October 9 as "fire pre vention week.” He said in a proclamation.that he wanted all Americans during that week to "undertake a year round'campaign against destruc tive fires in our homes and in, communities.” Idle Total Is Highest In 7 Years, but Jobs Reach Peak for '49 July Unemployment Tops 4 Million, With Nearly 60 Million at Work By the Associated Press Unemployment rose above 4.000,-' 000 in July for the first time since January, 1942, the Census Bureau reported today. But the number of employed also increased in July to 59,720, 000—the highest figure for 1949. | Explanation for the sinpltane ous increase m employment and unemployment was an increase of 417.000 in the civilian labor force —the number having jobs or seek ing them. Only one of each four of the new job seekers managed to find a job. The number of unemployed in July was 4,095.000 compared with 13.778.000 in June and 2,227,000 in 'July of last year. Students Add to Force. The 59,720.000 employed in July' compared with 59,619,000 in Junej | the previous high for 1949, and 61.615.000 in July. 1948. The Census Bureau commented: “As in June, most of the addi tional persons in the labor force were of high school and .college age. However, in contrast with the past two months, the rise in un employment between June and July cannot be attributed to the entry of young persons into the labor force. Adult workers ac counted for most of the increase in July.” Employment in non-agricultural industries, which have been hit hardest by worker layoffs since the business slowdown began last (See~JOBS, Page A-6.) Sarah Churchill Calms 'Audience in Fire Alarm ty the Associated Press NORWICH, Conn., Aug. 3.— Sarah Churchill, actress daughter of Winston Churchill, displayed some of her father’s aplomb last night when she calmed a summer theater audience after smoke drifted into the building from a burning rubbish can. A cry of “Fire!” started some of the spectators to the exits. Miss Churchill stepped to the footlights and urged the audience not to be alarmed. She told several humor ous stories while persons back stage doused the smouldering rub bish. The play, "The Philadelphia Story,” in which Miss Churchill is .co-starred with Jeffrey Lynn, then resumed as if nothing had happened. Scalfered Showers Due Today in Wake Of Freak' Deluge Cellars Flooded, Scores Of Autos Submerged in Northwest Area of City iPicture on Page A-3.) Scattered showers will be fall ing here and there around Wash ington today, tonight and tomor row, but the Weather Bureau is hoepful none will wreak the havoc that a “freak” raincloud brought to several Northwest communities between 5 and 7 p.m. yesterday. While surrounding communi | ties and the downtown area re gained dry, a slow-moving cloud dumped toils of water on the area roughly bounded by Eastern ave nue and Rock Creek Park, New Hampshire avenue and the Mary land line. Several hundred cellars were flooded and more than a score of automobiles were submerged to motor level when streets were flooded to a depth of more than 4 feet in some places. Warning's Broadcast. Fire Battalion Chief Edward A. Sweeney broadcast warnings to residents of the area to turn off gas pilot lights in their flooded basements and disconnect elec trical appliances. Because no moisture fell at the official rainfall measuring station at the Washington Airport, the Weather Bureau could only esti mate the density of the down pour from the freak northwest storm. The forecaster said resi dents of the area estimated that between 2 and 3 inches of rain fell within an hour. Storm sewers were so overtaxed by the flood that about 20 man hole covers, each weighing 75 pounds, were floated from their bases. Bus Becomes Stalled. Highest water was reported in the area bounded by Ingraham and Kennedy streets and Fourth street and Kansas avenue. At Seventh and Hamilton streets N.W. men in bathing suits meas ured the crest of the flood at 49 Vi inches. A Capital Transit bus became stalled at this point and passen gers got off and waded to dry land. Earl Columbus. 5237 Fifth street N W.. said his basement was under three feet of water and his automobile, parked in the (See WEATHER, Page A-5.) Mexican Prisoners Yield In Battle With Police By the Associated Press MORELIA, Mexico, Aug. 3.— Most of the 72 prisoners b?tiling police in a mass jailbreak sur rendered early today after an all night siege. At least two persons were killed. The bodies of a prison guard and a prisoner were recovered. Earlier reports that six prisoners were killed could not be verified. The police commandant said 49 of the men gave up to police and soldiers at daybreak. He said the other 23 who escaped with their lives still are at large. The prisoners included several long term and dangerous charac ters, the commandant said. They were pursued and forced into a defensive position on a hill outside the city, 150 miles west of Mexico City. Burma, Britain to Confer LONDON, Aug. 3 (fl*).—Foreign Minister U Maung of Burma will start a series of political and financial talks with top British government leaders here Friday. Mutual interest is stemming the tide of Communism in the. Far East is believed to be a leading topic. * Battle s Margin Hits 24,000 in Primary Victory Candidates Backed By Byrd Take All Major Virginia Posts LYNCH AND CLARK Win in Local Fairfax Contests. Page A-5. VIRGINIA HOUSE SPEAKER'S Defeat Only Organization Up set. Page A-5. ALEXANDRIA VOTE REFLECTS Northern Virginia Liberal Trend. Page A-5. By John V. Horner State Senator John Stewart Battle. 59-year-old Charlottesville attorney, yesterday won the Dem ocratic nomination for Governor of Virginia in an impressive pri mary election triumph for the Byrd organization conservatives. With only 100 of the States 1,768 precincts still unreported, the count stood: Mr. Battle. 131.413: Francis Pickens Miller. 106.769: Horace H. Edwards, 46.168, and Remmie L. Arnold, 21,526. Senator Battle, a veteran mem ber of the General Assembly, thus held a lead of 24,644 votes over his nearest—and most bitter opponent Mr. Miller, his Albe marle County neighbor, ran as the candidate of the anti-Byrd faction. Edwards Is Poor Third. Mr. Edwards, former Mayor of Richmond and former cliairmah of the Democratic State Central Committee, ran a surprisingly poor third in the hotly-contested race. Mr. Arnold, a Petersburg manufacturer, had been expected to trail the field. Senator Battle will be opposed in the November general election by Republican Walter Johnson. Commonwealth's attorney of Northumberland County, but only a political miracle could prevent victory for Mr. Battle at that time. He will succeed Gov. Tuck in January. Under the Virginia constitution, a Governor cannot succeed himself for the four-year term. Organization regulars won pri mary renominations for two other high offices. Lt. Gov. L. Preston Collins of Marion easily defeated Nick Prillaman of Martinsville for second place on the ticket and Attorney General J. Lindsay Al mond, jr„ beat back the chal lenge of a fellow Roanoke resident, j Moss Plunkett, for the State's top | legal position. M&ssenburf Beaten. There was one important or ganization casualty, however. House Speaker G. Alvin Massen btirg of Hampton, now Demo cratic Party chairman in Virginia, was defeated by a narrow margin in a three-cornered fight for the House of Delegates. On the basis of the returns compiled, Senator Battle appears to have carried seven of the nine congressional districts. Mr. Mil ler holds a lead in the 3d (Rich mond) and 9th (Southwest). There was an excellent chance, however, that Mr. Miller eventual ly would win the Second (Norfolk - Portsmouth) District from Sen*' ator Battle. The difference be tween them was only 144 votes, and reports were still to come in from seven precincts in Norfolk County—a Miller stronghold. The total vote, which exceeded 300,000 was a record high in a Virginia governorship primary. Through Mr. Battle’s victory, (Continued on Page A-5, Col. 6.) Bootleg Protection Charged in Georgia (y tH* Associated Press ATLANTA, Aug. 3.—Georgia's revenue commissioner said today he has uncovered a $1,000,000 bootleg liquor ring “which appar ently flourished under State pro tection.” Revenue Commissioner Charles Redwine said an Atlanta whole sale firm in only six months sup plied the $1,000,000 in liquor to dry counties “all over North Georgia.” His agents raided the Arm Fri day, Mr. Redwine said, and seized more than 1,000 sales slips giving names, dates and amounts of illegal sales to bootleggers, so cial clubs and others. Mr. Redwine made the evidence public today as he turned it over to solicitor Paul Webb of Fulton County (Atlanta) for any legal action. The commissioner’s charges cov ered part of the regime of former Gov. M. E. Thompson and Mr. Musgrove denied any knowledge of the affair. Mr. Redwine said State agents have told him they were “under instructions” not to bother the ring. He quoted the operator of the wholesale firm as testifying that the State Revenue Department approved the huge operation in dry counties “because they needed the revenue.” Mr. Redwine named the whole sclo plant as Richmond Wholesale Liquors, Inc., under license to R. W. Best, of Augusta.