Evening star., 1949-05-03
leoffIerContract
Probe Awaits
Final Audit
Recreation Eoord
Testimony Attoeks
Operation OF Links


operation ~ iAr puhla go4'
eo4ss<s here ey : q .SsasTasg waN
III fvceSs AkAgn tsSs&y A~A3t4nk
completion of ats Audit ef he
self course operator hssaks
After concluding YESTERDAY
* SS3os2 Representative Rndasn.
DrnacgEt 81 North Carolina ~ "a
he would CA! toer9.ee, The ps8h,ts
Lands Subcommittee he saeads. as
Sooa 81 The auditors complete
Their wsk II Mas Indicated ihI2
would Take 81 lsASg tao WvekS
Repre- sentative Pou.son Rrpue-
ican, ot CAhioynss. sharsed cus-
Ina The hearing tAa; tl9e zll.! IN.
complete audit had revealed
discrepancy oi about so G4aa.
This sum he Maid involved money
paid out. huI !og which adequate
Justification had not bern entered
on the hookS
He described thc leocfcr gsaak
keeping system as auheuate tet aud
Inadequate
Contract Renewal Recommended,
MI Poulson also brought oat
that A + Demaray associate d.
rector oi the lntrFiag Depart
ment's National PARK Service rad
sent "a letter 10 the Interior Sex
Cetary ON April J. recommending
that Mr. leofYirfx contract lie
renewed, even though The sub
committee had not 1nlshea sls
investigation
This new contract would have
given M; LeoliicI a raise Ia salary
from 50 500 tn kil 500 his part
neGS a raise from ST. 600 10 se 500,
guaranteed profit q! at least
S. 200 instead OF the s. 500 In the
cid contract. reduced from tn ]
per cent the amount oi money IN
be put back into the courses
through the rehabilitation fund
and given the contract for I've
years. with an option for All addl-
tionAl fipe years
James l.. Schwah vice president
OF the District Recreation Board.
declared. AT the hearlns. the In
terror Department had allowed the
Leofiier Co 10 hoard money thai
should have been used for reha.
bilitation Of the courses,
Heads Group In study.
Mr.. Schwab Is chairman al q
board committee that has bern
studying the Rol' situation He
said his study showed that Ia the
last five years. the Interior he
partmcnt could have forced Nj.
/ Leofiier 10 use abOu, s67 900 which
had accumulated IN n special scs
habilitation fund However. only
about $40 900 OF this sum aAs
spent. he added
Mr Schwab. IN snalygine details
OF Mr. Lcoffier's last contract said
the l9$B account showed purchase
Of a Cadillac al cost OF So 1927.
Depreciation OF IS per cent vas
charged up TO expenses. Mr..
Schwab said. and 1t Vas pre-
sumed the operation Of the car
also was charged As MA expense
Mr.. Schwab said the entire cost
Of operating the Cadillac for the
year. including depreciation. ap-
parentiy would be s2.44e. OF which
the Government paid si.i24
Claims Contract Viola tion.
Mr.. Schwab charged the figures
available 10 him showed. beyond
contradition. that reserve funds
were used TO increase the assets
OF the Leoffier Co. In violation Of
the contract II had with the In
terror Department
Mr. Schwab said the District
Recreation Board could have op-
Grated the courses tn the last i've
years using Mr., Leoffier's figures
on profits. with q total saving Of
si60 .902. which could have bern
turned back into the courses
Mr., Schwab contended the Rec
reation Board is the proper aRen-
cy 70 operate the courses. as the
Law creating the board In la42
Intended
This same stand was taken bs
Harry S, Wender. president ~
the Recreation Board. Milo
christianen. superintendent of
recreation, and Mrs. Alice c.
Hunter. a board member. when
they testified
Alfred l. Thomas and William
A. Farr. partners OF Mr.. LeofYies.
made brief appearances on the
witness stand. Both we're asked
what kind Of cars they drive and
II the expenses and depreciation
are paid for by the contract, Tfsy
said they drive DodRes. that the
contract takes care OF expeases
and depreciation. and that Mr..
Leotfier has q Cadillac under the
same arrangement