Evening star., 1940-01-30

to these societies certain percentages
of net profits, ranging from to 10
per cent, from the units operating
in the buildings in which members
of the societies were employed"
Agreement Violation Charged.
Another group of employees, it
continued, had operated its own
cafeterias, lunch counters, etc, in
Government buildings, and the as
sociation took over the financing
and operation in consideration of a
percentage of operating profits that
ranged from IS to IS per cent.
These arrangements, the report
said, were not contemplated in the
1927 contract and violated the
agreement with the Government
under which it was to get so per
cent of profits. These agencies and
societies, it was amplified, were paid
$l36. 900 by reason of these pacts.
Listed among those sharing in
these transactions were Home Own
ers' Loan Corp, Munitions Welfare
Society, Plaza Cafeterias, Inc.
CTreasury employees; newsstands,
Veterans Administration, Shipping
Board and War Department.
In this same connection the report
raised question as to the procedure
followed at the Commerce cafe
terra There was no welfare society
there, it was explained, and conse-
quently no organization to get a
percentage of the profits, so this was
compensated for by the association
reserving 10 per cent of the monthly
profits and turning this to the bene-
f1t of the employees by giving dis
counts on meal checks. These re-
ductions were charged to the
donation" account, it was ex-
planned.
Stopping of Entries Claimed.
However" the report said, "in
1887 it had become generally un-
derstood that voluntary donations
were not deductible from profits
before computing the Government S
share, and apparently to reduce
the amount shared with the Gov
ernment, and at the same time not
to disclose these donations on the
books of the association, the gen.
eral manager instructed the assist
ant bookkeeper to discontinue en-
tries on the books to the sales and
donations accounts, but to keep a
memorandum in his desk drawer Of
the value of such reductions" A
piano for the auditorium and a
brass plate also were presented to
Commerce employees at a cost Of
SALTS, it was said.
The report also shows that from
1858 the association paid out
$6,381.23 for group insurance on its
employees. Contributions for various
celebrations also entered into the
disbursements.
Payments Questioned.
The welfare unit Of the associa-
ton was transferred to the Branch
of Buildings Management of the
Interior Department where an in
dependent welfare society composed
of Interior employees was incor-
porated last July /. The associa-
ton now gives $1,000 to this society
and the report questioned payment
of $4,000 to a supervisor who investi-
gates the reasons for absence Of en-
ployes, saying this would appear to
be official government business
rather than that Of welfare
society.
The Anacostia golf course also
came in for extended discussion. It
cost $25,919.71 to construct the first
nine holes in 1880, the report said,
and only $e,405.59 for the second
nine in 1882.
The report also said legal fees Of
more than $4,000 had been paid out
unnecessarily to recover tax refunds
of $4,000 from the Bureau Of In
ternal Revenue.
The report declared, In pointing to
an expenditure of $117,950 for a new
building by the association and ad-
ditional money for acquisition Of
land, that 1t has no authority TO ac-
quire or hold real estate.