I
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THE GAZETTE-NEWS HAS THE
MOST EXPENSIVE) ASSOCTA.
ED PHES3 BERVICB IN THB
II 1 jj CAROLTNAS II It
WEATHEB FOBECASTi
PARTLY CLOTJDT.
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VOLUME XIX NO. 131
ASHEVILLE, N. C, MONDAY AFTERNOON, JULY 13, 1914
PRICE FIVE CENTS
DRASTIC REPORT
ON NEW HAVEN
One of Most Glaring Instances
of Mai-Administration in
American Railroading, -;
Says Commission.
FINDS MANAGEMENT
CRIMINALLY NEGLIGENT
Evidence Pointing to Viola
: tions of Law Transmitted to
i District Attorneys in
Various States.
" 'Washington, July 11. "One of the
most glaring Instances of mal-odmln-lstration
revealed In all the history
of American railroading," 1b the In
terstate commerce commission's char
acterization of its findings In the In
vestigation of the New Haven rail
road financial affairs reported today
to the senate. ' .' ' " '
In a report of 80,000 words, prob
ably: the most drastic ever made by
the commission, the , New 'Haven's
commissioners were characterised as
"criminally negligent"
Evidence pointing to the violations
of the law have been transmitted to
district attorneys - in. Massachusetts,
Rhode Island and elsewhere.
" "A reasonable estimate of the loss
to the New Haven' by reason of waste
and mismanagement, says the report,
"will amount to between $60,000,000
and 90,000,000. Directors should be
made individually liable to civil and
criminal Jaws for ' tho " manner In
Which they discharge their trust.
All the commission's strictures were
upon the management of the New
-Haven system under former President
Mellen. - ' .
In Justice to the present manage
ment, the commission says, it is but
fair to say that Chairman Howard
, EiUiott and Walker D. Hlnes. soecl&l
Counsel, have co-operated with the
commission and rendered It substan
tial aid throughout the Investigation.
The report cites these "significant in
cidents": Marked Features.
"Marked features and significant In
cidents in the loose, extravagant and
improvident administration of the fin
ances of the New Haven, as shown In
this investigation, are the Boston and
Maine despoilment; the double price
paid for the Rhode Island trolleys; the
recklessness in the purchase of the
Connecticut and Massachusetts trolleys
at prices exorbitantly in excess of their
market value; the unwarranted ex
penditure of large amounts In 'educat
ing public opinion'; the disposition
without knowledge of the directors of
hundreds of thousands of dollars for
Influencing publlo sentiment; the hab
itual payment of unltemlsed vouchers
without any clear understanding of
details.
- "The Interlacing details of the prin
cipal and IU subsidiary roads and the
' subsequent complication of accounts;
' the practice of financial legerdemain
In Issuing large block of New Haven
stocks for notes of the New England
Navigation company, and manipulat
ing these securities back and forth:
flotitloua sales of New Haven stock to
friendly parties with the design of
boosting the stock and unloading on
the pulhlo at the higher 'market
price's the unlawful diversion of cor
porate funds to political organisations;
the scattering of retainers to attorneys
of Ave states.' who rendered no Item-
Iced bills for services and who con'
d noted no litigation to which the rail
road was a party; extensive use of a
paid lobby In the matters as to which
the directors claim to have no control;
attempting to close the mouth of the
press by subsidy; tho payment of
money and the profligate Issue of free
passes to legislators and their friends;
the Investment sf MOO In securities to
New England newspapers; th regular
employment of political bosses In
Rhode Island and other states, not
for the purpose of having them per
form any service but to prevent them,
as Mr. Mellen expressed it, from 'be
coming active on the other side . The
payment of the Blllard company more
than $21,000,000 for a service to the
New Haven company and Into! which
Blllard Invested not a dollar.
-. - Morgan and Mellcn.
The Inability of Oaklelgh Thome
to account for $1, 0S1. 600 of the funds
of the New Haven Intrusted to him In
carrying out the Westchester propor
tion; the story of Mr. Mellen as to the
distribution of 11,100,000 for corrupt
purposes In bringing about amend
merits' of the Westchester and Port
Chester franchises; ths domination of
all the affairs of this railroad by Mr.
Morgan and Mr. Mellen and ths abso
lute subordination or other members
of the beard of directors to the will of
thme two; the unwarranted Increase
of the New Haven liabilities from $$,
000,009 In 110$ to 1417,000,000 In
111$) the Increase In floating notes
from nothing In 110$, to approximate
ly $10,000,000 In 111$; ths Indefensible
standard ef business ethlus and the
absence of financiers In directing the
deaitnles of this railroad In an attempt
to establish a monopoly of a trans
portation of New England. A com
bination of all thane has resulted In
Ui (rwM daploraile situation In
STOCKHOLDERS f
SUE MANAGEMENT
In Effort to Recover $125,000,-
000 From Former New
' ' ' Haven Directorate. '
Boston, July 1$. Whipple, Sears
and Olden, attorneys representing the
minority - stockholders' ' of the New
Tork, New Haven and Hartford, have
demanded that - the directors join
their clients in the. suit to . recover
about" $120,000,000 alleged .' to have
been wasted by the management.
The suit will be brought against the
estate of J. P. Morgan, Louis Dass
Ledyard, and others who were mem
bers of the New Haven directorate
at the time the. transactions that have
been the subject of injury by the in
terstate commerce commission were
made, . .,: t
. The attorneys said todayt '
"These, losses which have so plain'
ly resulted from the neglect of Judl
clary duty will be reocvered on the
ground that a coporatlon can recover
from' Its dlretoors." 1 ' v .
TO
Matter of .Conserving Supply
- And Preventing Waste
... . i . - .
Will be Studied.
Washington, July 18 In" the be
lief that the methods used in exploit
ing timber resources vitally concern
the publlo Secretaries Redfield and
Houston have completed plans for
the study of the question by their
departments. One of the conditions
which make the Inquiry of Immediate
importance according to announce
ment today, la the fact that standing
timber amounting to about 800,000,-
000,000 feet Is being reduced of Its
stumpage at the rate of approximate
ly $0,000,000,000 feet annually. In
spite of this limited timber supply,
lumbermen are supposed to be able
to market much of the poorer
grades. It la estimated that from one
third to one half of tho material in
the trees is left In the woods or burn
ed in lumber mills. This waste Is be
lieved to be preventable and much
more, it Is hoped, can be saved under
Improved conditions of marketing and
use of wood.
Ths stdules will seek to establish
the essential facts relating to the sup
ply and to analyse the cause of the
present conditions which are declared
to bs unsatisfactory. The aim will be
to Indicate measures which should be
adopted by the Industry Itself or by
the publlo In relation to the indus
try.
REGRETS HER 601 DID
NOT BLOW UP ST. JOHN'S
Suffragette Admits She Tried
To Destroy Church She
Is Remanded.
. London, July 1$. Mrs. Mary Hen
nybell, a suffragette was tried today
for try I rig yesterday to destroy the old
church of Ht. John the Evangelist at
Westminster, with a bomb, Bha said;
"Ths only thing I regret Is that ths
beastly thing didn't go off.
Ths . prisoner, expressed intense
pride In her act She congratulated
the woman worshipper who found her
lighting the fuss attached to the
bomb of gunpowder and said her
smartness was worthy of
cause. Bhe advised her' to
a better
become a,
militant suffragette. -
"I meant the bomb (o go off and
blow up ths church," aid the prison
er. Bhe then stretched herself at full
length on the seat In the prisoner's
enclosure and asked ths woman war
den to give her a pillow and wake
her when ths cass was cnarluded.
"Goodbye, you Paid bully" was her
farewell to ths magistrate1 when he
remanded her. ,
aa.aamaaaaaaa.a,aa.aa.a
which the affairs of this railroad are
involved.
, Hilly llaitrr IX-ad.
Chicago, July 1J Hilly Daxtor, old
time minstrel, who played with near
ly all of the leading minstrel com
panies of America, and before the
royalty of Kumpa, Is dead hare from
clrrlioL of the liver.
LiWSPLE
W, H. Taft Mentioned -as Pos
sible Successor to Deceased
... Associate Supreme
' ' Court Justice.
FIRST APPOINTMENT
OF PRESIDENT WILSON
The Others Suggested Are Mc-
Reynolds, Lane, Garrison,
Shields, Lehmann and
John. W. Davis.
Washington, July 13. Discussion
continued here today as to whom
President Wilson would appoint to the
Supreme court to succeed Associate
Justice H. H. Lurton, who died at
Atlantic City, yesterday. The names
of those mentioned in connection with
the .vacancy lncluder Former Presi
dent Taft, members of the cabinet and
others. $
In official circles no one cared to
Venture an opinion as to whom the
president might choose. It is not be
lieved he has yet considered any
name In conectlon with vacancy.
As a result of Justice Lurton's
death, the president will be called
upon to make his first appointment to
the Supreme bench.
. In addition to Mr. Taft, those men
tioned Include Attorney General Mc
Reynolds, Secretaries Lane and Gar
rison, Senator Shields of Tennessee, a
former Justice of the supreme court
of that state; Frederick W. Lehmann,
former solicitor general and one of
the American delegates to Mexican
ce conference at Niagara Falls,
and John W. Davis of West Virginia,
the solicitor general.
Former President Taft Is known to
have had cm ambition, to round out
his career as a Justice of the highest
court of the land. Whether he still
cherises that ambtlon Is not known
here. When It was reported lost win
ter that Justice Lurton was about to
retire It was suggester Mr. Taft might
be offered the place, but it was stated
at the White House that his name
had not been mentioned. In official
circles It was thought unlikely that
the president would nominate one of
his cabinet, but It was his desire to
go through his term without change
in his official family. Until his death
ths court was made up of three re
publicans, and six democrats, but now
the reduced to two Chief Justice
White and Justice Lamar. ' It Is
thought probable that the president
will appoint a ' democrat. Further
more, there has been an unwritten
rule in the senate which must go
throngh with the nomination of a re
publican when tho minority falls be
low three. This will probably bs done
before the senate adjourns so that the
new Justice may take his seat at ths
Octobsr term of ths court.
Heart Failure.
'.. Atlantlo City, N. J., July 1$. As.
sociats Justice Horace Harmon Lurs
ton, of the United states supreme
court died suddenly at a hotel hers
yesterday from heart failure superin
duced by cardiac asthma. He was 74
years old.
The Justice who cams here July 1,
was In his usual health before retir
ing Saturday night ar.d bad taken his
customary evening outing on . the
board walk. Shortly after midnight
he complained of feeling ill and al
though his physician. Dr. Ruffin, who
arrived Saturday from Washington,
was summoned immediately. Justice
Lurton died at t o'clock In the morn
ing. His wifs and son, Horaoe H.
Lurton, Jr., of Nashville, Tenn., were
at ths bedside. Mrs. Horace Van
Deventer, a daughter, and her hus
band, arrived last night from Knox
vllle, Tenn., and other members of
the family are expected today.
Ths body will be taken to Clarka
vllle, Tenn.. for Interment, the fun
eral party leaving hers at o'clock
this afternoon. ' It was at that city
that Justice Lurton began the prao.
tlce of law and lived for 10 years.
Funeral services will be held th.re
Wednesday. Chief Justice White, and
several associate Justices of the Su
preme court, as well as many friends
fro mdirrerent parts or in soountry
we expected to bs present' '
WESTINGHOUSE STRIKE
1 IS FORMALLY ENDED
Pittsburgh, Fa., July 1$. Strike In
the Weatlnghousa factories was form
ally ended tvday when approximately
$000 men and women returned to the
shops. All plants were placed on full
time and all strikers were taken back
with ths exception of two or three
hundred whose places were filled by
Imported workmen during ths strike.
Half a down deputy sheriffs were on
guard at ths works.
rust lUvli nbnrg Db.
Berlin, July 11. Prof. Julius Itod
enburg, German poet and author,
died hers today In his eighty-fourth
year.
POLITICAL POT
BO UNG AGAIN
Commotion Begins When R. R.
Reynolds Is Sued for Dele
gation Board Bill by
Waynesville Hotel
GUDGER BEHIND SUIT,
CHARGED BY REYNOLDS
G. S. Reyonlds Makes State
ment Labeling Action As
, Hold-Up . Game and
" Dirty Politics." ;
The following dispatch from
Waynesville to the Charlotte Observ
er last Saturday, July 11, tells of a
suit Instituted by the Suyeta Park
hotel in he Haywood Superior court
against R. R. . Reynolds, candidate
for congress against .J. M. Gudger,
jr., for the collection of a delegation
board bill alleged to have been con-,
tracted by Mr, Reynolds during the
Waynesville convention several weeks
ago: "-.'.'.'.':. ,. .
'For the first time in the history
of the Tenth Congressional .district a
suit was started this week in the
Haywood county Superior court for
the collection of a delegation hotel
bill alleged to have been made while
the democratic convention was In
session in this city last June. Robert
R . 'Reynolds of Asheville, one of the
candidates for congress, is the de
fendant and . Mrs. L. K. Cameron,
proprietress of the Suyeta Park hotel,
Is the plaintiff.' :
. "The complaint was filed following
a disagreement between a friend of
Mr. iteynolds and the management of
the hotel in regard to the hotel bill.
The total ibllLclalened by the hotel is
$1,021.60, minus a payment of $600,
leaving a balance of ,. $621.60. Mr.
Reynolds claims, that according to his
friend's statement, there Is a balance
of only $350 due the hotel, which is
according to the understanding of his
friend with the clerk at the hotel. The
case will not be tried until the Sep
tember term of Haywqod county Su
perior court The attorneys for Mr.
Reynolds are now: preparing an an
swer to the complaint" ,
When asked about tho suit here to
day, G. S. Reynolds, a brother of the
defendant In the suit and his cam
paign manager who looked after the
hotel arrangements 'in' Waynesville,
made the following statement to The
Gazette-News:
"When the Reynolds delegates went
to Waynesville to attend ths Tenth
District congressional convention,
more registered at the Suyeta Park
hotel than could be accommodated
there and immediately left and went
to 'the Gordon. They registered at
the latter hotel and remained there
during the , entire . convention, al
though they 'failed to register off at
the Suyeta Park. Their bills at the
Gordan have been paid In fuiL
"Mr. Bchaufer, the clerk at the"
Suyeta Park, cams to Asheville a
short time ago and went over the list
of registrations wliH me and agreed
to the amount still due ths hotel.
I offered to pay this amount and now
stand ready to pay It. ' He went back
to Waynesville and the proprietress
of the hotel repudiated the agree
ment and refused to accept anything
but the original amount claimed. The
amount offered by us In settlement
has been offered to tho plaintiff in
the suit through our attorneys.
"Ths clerk of ths Suyeta Park ad
mitted to Ronald B. Wilson of
Waynesville that tho amount tendered
by us in settlement was all ths plain
tiff Is entitled to. Further than that
Congressman Gudger was In Waynes
ville the day the complaint was drawn
and It Is generally rumored that he
was In the office of the attorneys
who Instituted the suit and dlctaed
the complaint
"We are still ready to pay the
amount of the bill as agreed upon.
We consldor the proceedings a hold
up game and a plcs of dirty politics.
"I have the affidavits In my pos
session from parties for whose board
bill ws ars being eud that while they
registered at the Suyeta Park they
could not procure quarters there but
latur went . to ths Gordon ' hotel,
where they stopped and wers eni
tnrtalned, the board bill for which
has been paid. ' ,
"We not paid board bills for our
own delegates but we paid iha board
bills for a number of Oudger dele
gates, but" refused to psy bills for
some Oixlger delegates which 'wers
presented."
REPORT OF FALL OF
1 GUAYAMAS DENIED
ftaltillo, Mexico, July 10 (Via Lar.
do. Texas, July 11.) Nowe thst the
port of Guayamas has been evacuated
by ths federal are untrue according
to reports today from General Alva
redo who reports he has moved his
forces so as to surround Guayamas
eempletelx oa ths land side.
ERFAT MFFTIHIC i
UI1L.III HILL I IIIU V
OFlABCElf:
' I
Their Celebration of Anniver
sary of the Battle of Boine
Carried Out With Much
Enthusiasm.
MARCHERS CAREFUL TO
CREATE NO TROUBLE
Demonstration ut Londonderry
However Causes Catholics
Some Concern; Organize
For Defense.
Belfast, July 13. The Insistent de
mand of the Protestant portion of the
province of UlBter for exclusion from
operations of the. Irish home rule bill
lent added Impetus to today's celebra
tion of tho anniversary of the Battle
of Boine. The ceremonies was car
ried out here with great enthusiasm.
Sir Edward Carson, the Ulster union
ist leader, rode at the head of 6000
Orangemen, accompanied by the usual
flfo and drum corps and Included a
sprinkling of brethren from the United
States.
They marched through the city to
Drum beg where a great open air
meeting was held, addresses being
made by Sir Edward and other. The
marchers were careful not to create
any disturbance and the whole march
was effected without attack. Sir Ed
ward was marshal of the day. Buttons
bearing his portrait were worn by
nearly every man in the procession,
while great canvasses, spread across
the streets In the unionist section, boro
his likeness. It is regarded as signifi
cant that In recent interviews, Sir Ed
ward la quoted as saying the only con
dition of peace Is the exclusion of Ul
ster "for the present," while the more
remote- action of the unionists must,
in his own opinion depend upon -the
way the Dublin parliament treats
Protestants In the province of Ireland.
Throughout the province of Ulster and
in Londonderry extensive precautions
were taken by officials against clashes
between the organized force of Prot
estants and the Catholics. - '
Critical Situation,
Londonderry, Eng., July 1$. Or
angemen here began the celebration
of the anniversary of the battle of
the Boine with a cannon through
which they projected their explosives
so that they burst over the residences
of the Catholic settlements. Catholics,
believing the cannonade was the pre
lude to a demonstration on the part of
the Orangemen, organized for defense,
but up to noon no collision between
the two parties had taken place.
While th Orangemen were attend
ing church Sunday and the police were
busy guarding their processions, the
nationalist volunteers succeeded In
bringing into the city two automobile
loads of rides.
!
FORMS H THEORY OF
MURDER ORS. HEY
Prosecutor Smith Does Not
Think Shot Was Fired at
Dr. Carmen.
Freeport. N. Y., July 13. Investi
gation of the murder on July 3 o(
Mrs. Louise Bailey In the office of
Dr. Edward Carman, has caused Dis
trict Attorney Smith to form a new
theory directly In contradiction to
that offered by Dr. Carman, that the
'murdered sought to kill him and not
Ihls patient The attorney has made
a chart showing the positions of the
phpsidan and ths woman, showing
that the-barest part of the physician's
shoulder could be seen through the
window, mhlle an unobstructed view
of the woman could be had.
The attorney snld he "was satisfied"
the person who fired the shot knew
every Inch of the room.
The grand jury will continue to
sit this week, but If an Indictment. Is
voted charging Mrs. Carman with the
crime she will be tried almost Imme
dlately.
KENTISH GUARDS WISH
TO ATTEND UNVEILING
Raleigh, July 11. Governor Craig
has received a letter from Edward a.
Graves, lelutensnt-colonol of ths Ken
tlsh guards of East Greenwich, R. I.,
In which organsatlon General Nath
aniel Greene the revolutionary war
leader was a charter member, ss; ln
that the guards would llks to attend
ths unveiling of ths equestrian status
of General1 Greens at Guilford court
house In a body.
Mr, raukbtirst llclcaMSt.
- London. July 11. Mrs, Emmallne
Pankhurat asaln wtt released from
llolloway Jail today.
UARLYPEACEIN
mMicoMkely
fin CONFLICT WITH
SEiTEJE SAYS
President Says He Has Assur
ance Mr. Jones Will Be
Confirmed.
Washington, July 13. President
Wilson today denied that there was
conflict between him and the senate
over the nominations of Paul ' M .
Warburg and Thomas D. Jones, as
members of the federal reserve board.
In talks with callers he declared he
was working in complete harmony
with the democratic majority in the
senate with but one or two excep
tions. Mr. Wilson said he had definite as
surances that Mr. Jones would be
confirmed. He did not discuss the
case of Mr. Warburg except to say
he thought the senate as a whole
would be perfectly fair.
W. P. G. Harding of Birmingham,
Ala., who recently was confirmed as
a member of the reserve board, today
advised Secretary MoAdoo In person,
that he Is ready to assume his .new
duties. Afterward Mr. Harding said
he did not know exactly when : he
would take office. After provisions of
the new banking law, however, Mr.
Harding and C. S. Hamlin and
Adolph C. Miller, confirmed with
him, must be sworn in not later than
July 21.
Senator Hitchcock, acting chairman
of the banking and surrency commit
tee sold he probably would submit
the unfavorable recommendation of
Mr. Jones to an executive session of
the senate late today. . Consideration
of the report is expected to go over
for a day. .
"I am beginning to receive many
letters and telegrams from people tn
the west and middle west supporting
ma In my standard against the con
firmation of Mr. Jones," said Senator
Hitchcock. "The Harvester trust was
the' most obnoxious of all to these
western people and they do not like
any one who has had anything to do
with it"
The senator reiterated that the
committee would do nothing further
with the Warburg nomination unless
Mr. i Warburg would change his mind
and appear for examination.
HICH WATERS AROUND
Five Deaths ' in Pennsylvania
As Result of Storm There
Last Night.
Scranton, Pa., July 11. High water
caused by Friday's storm, during
which a man and a boy were drowned
and another man killed by lightning.
had completely subsided today. Sev
eral railroads were tied up for hours
lost night by washouts, but practically
normal schuduled were resumed today.
Lower levels In several coal mines
were flooded but no serious damage
was done.
Five deaths due to the storm occur
red In various parts of the stale.
FREE COUPON
IDEAL ART, .
PATTER "OUTFIT
TO-DAY MAGAZI NE
rirstiramoR rr
Tl J r
5azette-News, Monday July 1
SU Or THE ABOVE COUPONS ENTITLE EVERY READER
TO THESE TWO GREAT GIFTS
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crrr a rrwn
Quiet Transition of Power at
'.Mexico City May Be Effect- -
ed In Spite of Car.
' ranza's Stand.
HE REFUSES TO DEAL
WITH HUERTA PRODUCT
However, Carbajal Might Sur
render as Faction Repre- :
sentative Instead of as
Provisional President. '
Washington, July 13. Mexico City
was looked to today as the stage for
the next big scene in he Mexican situ-
atlon. With Huerta about to quit and
turn over his affairs to the new foreign i
minister Francisco Carbajal, hope was
expressed that a way might be found
peacefully to transfer the government .
to the constitutionalists and avert mil
itary conquest of. the capital by tho '
constitutionalist force . . : -
Carranza has expressed his unwil
lingness to deal with Carbajal, regard
ing him as the product , of Huerta,
Nevertheless parleys . for the . quiet
transition of powers might take place,
if Carbajal appeared in the role of the
representative of a faction rather than
the provisional head of a government '
which the constitutionalists refuse to
recognize. . .
Carranza, It was declared. Intended
to follow the "plan of Guadaloupe," ,
which provides for military occupa
tion of the capital. However, several
European . and South American na
tions, it was said might frown on such
a course. They regard with apprehen
sion the possibility of a fight in Mexico
City and foroeful taking over of the
powers of government without some
guarantee to the population. . ,
It was believed on all aides this '.
morning that fighting was pwan end,,
Carranza' would.'. pronV.'l;- enter the
capital With a small fo , the remain- ,
der remaining at the capital's gate or
near , their headquarters to be dis
missed at the restoration of , peace.
Any parley between representatives of
Tuerta, who took part in the Niagara
Falls conferences, and the constitu
tionalists, practically has been aban
doned. Carranza has not formally re
plied to the mediators' proposals, but
official messages from his headquar
ters at Saltlllo have Indicated what
the reply would be. Carranza Is quot
ed as saying the only thing he would
accept Is the surrender of Huerta and
his army.- i
Huerta,- It was believed, might, quit
Shapultepec some day this week. In.
this case Secretary Carbajal would
succeed him. . '
Carbajal Is a man of law. Hs Is less
than 60 years old. - Of an academlo
tempermament, he never has served In
the army. He came Into International .
prominence as the envoy of Dial in.
the peace conference of 1(11, after
the Madero revolution. A fewweeks
ago he was elected chief Justice of the
republic's supreme court after serving
sverl year., as associate Justice. Hs ,
Is said to be of a conciliatory disposi
tion, anxious for the restoration of or
der nnd not likely to elect to resist
with an army the approach of ths
constitutionalists. ...
Delivers Money ,
El Paso, Tex., July 13. Five mil
lion dollars in constitutionalist money,
and ii freight car filled with stamping
machines, were delivered In Juarea
this morning by Villa agents to Al
( Continued on Fagi 11).
IcartaataTaraW.