Evening star., 1949-06-08

Inc 1OlOWl1M cACcIpL$ AIe
from the testimony given yester-
day by Bertram B. Barr. q Gen.
eral Accounting once auditor.
concerning a study OF the books
kept by s. G. Leofier. public golf
course operator here. Mr.. Barr
made the study of the books.
Mr.. Barr testified before the
House Public Lands subcommit-
tee now holding hearings on the
golf course operation. The ques-
tions we're asked by Representa-
tive Poulson, Republican. of Cali
fornia. who requested the GAO
TO make the study.
@. Did you find anything un-
usual in your examination?
A. Yes. the examination dis
closed several unusual items.
/ @. Will you disclose what those
items were?
A.. In the examination I found
that the s. G. Leoffier Operating
Co. had the contract Immediately
preceding the one which expired
on December 81. 1943. That cor
poration transferred assets to
the present concessionaire. a part
nership, as Of January /. 1914,
which comprised furniture. fix
lures and equipment carried on
the corporate books at book
value Of $12.59l.28 and set up
on the partnership books at $4S,-
618.0l. This transaction result
ing in appreciating in value these
assets to the extent Of $36,026.73
by this transfer.
@. Were there any other items?
A. Yes. There was charged TO
payroll account S1.100 each year
for five years or a total of $500
which was set up as due James
Milton. The books of account and
records fail to disclose the reason
for this payment from which no
withholding tax was deducted and
no contract Of employment is in
evidence. However. regular
stated salary of $75 a week is paid
to Mr.. Milton apparently as full
time employe. The amount Of
$500 appears TO be in addition
to his regular salary.
@. What were Mr.. Millions
duties?
A. According to the best infor-
nation obtainable, Mr.. Milton ap-
pears to be an all-around man.
primarily engaged In connection
with operations involving the
miniature golf courses.
Other Transactions.
@. Did you find any other trans
actions affecting MIR. Milton?
A. Yes. The books reflect that
as of December 81. 1948. the ex-
piration date of the contract. a
journal entry was made showing
a. credit to the Capitol Golf Con-
struction Co. Of S6,701.19. stated
to represent $4,000 for plans and
specifications and s1,701.19 cover
ing S per cent of gross receipts,
for the Anacostia and Langston
Miniature Golf Courses. This
amount has not yet been paid.
@. How did this transaction
concern Milton?
A. On February 8. 1s4s, the
Capitol Golf Construction Co.,
wrote a letter to the concession
aire, which is signed by James z.
Milton, offering to prepare plans
and specifications and supervise
the construction of the Langston
and the Anacostia miniature golf
courses. for q fee of $2,500 for
each golf course plus per cent
Of the gross receipts, for the dura-
ton of the contract with the De-
partment of the Interior and re-
newals thereof.
Sole Proprietor.
G. What connection is there
between Mr.. Milton and the
Capitol Golf Construction Co.?
A. Mr.. Milton appears to be the
sole proprietor of Capitol Golf
Construction Co. with Offices at
1881 Fifteenth street NV. Wash
ington. D. c. Investigation does
not disclose any Office or any work
being performed In the name of
Capitol Golf Construction Co.
However. 1881 Fifteenth street
NV, is the offices of Oscar j.
Bernstein, the accountant for s.
@. Leoffier Co. The files at the