Evening star., 1949-06-08
House Unit Approves
Ban on Award Of
Contract 10 Leoffler
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today for a brief and hot defense
Of his business practices.
He demanded that the commit
tee "straighten out this fraud busi-
ness" He said that the implica-
tions made yesterday that he was
guilty of fraud In conducting his
business should be cleared UP.
Mr.. Redden told the golf course
operator that the committee was
not interested In that angle and
could take favorable action on the
bill-which 1t did-without indi-
eating that fraud was present.
Again Charges Moral Fraud"
Mr.. Poulson repeated what he
had said yesterday, that there was
moral fraud" because Mr.. Leoffer
had "chiseled" the Government for
everything he could.
Mr.. Leoff1er replied:
That's only your opinion"
He said there had been a lot of
lies and that the various auditors
reports were also lies. Mr.. Redden
warned him to use "a little more
diplomatic language.
Mrs. Leoffler shouted that "one
department doesn't trust another" +"
He said the wear and tear on his
books In the last three months
from the numerous audits had
worn them so badly that he
doubted If anybody would be able
to read them.
Il suppose the Internal Revenue
Bureau will be next. That's the
usual thing" he added.
Oscar j. Bernstein. certified
public accountant, who has done
work for Mrs. Leoffier over a
period Of years. was called to the
stand and questioned about the
fees charged. He angrily shouted:
TITS nobody's business what I
charge for my services. II a client
doesn't like it he can let me CO."
Mr.. Bernstein intimated that
the Government is to blame be-
cause 1t set the standard" when
1t gave the contract to Mr.. Loeffier.
James E. Schwab, vice president
of the District Recreation Board,
also took the stand briefly to state
that he didn't think Mr.. Leoff1er
had presented anything" to refute
the charges of mismanagement of
the golf courses brought by the
Recreation Board. Mr.. Redden
told him 1t was unnecessary for
him to go into detail at that point,
since the subcommittee had about
all the testimony 1t needed.
Interior Department officials
told reporters after the hearing
that q request had been submitted
to the Budget Bureau recently for
$135, 900 to hire 1S temporary audi
tors 50 that the TOO unaudited re-
ports could be checked. This re-
quest has been forwarded to Con-
sress. they said.
The hearing yesterday was
marked first by Mr.. Leof1ier LASH
ing out at his critics-mainly the
District Recreation Board. which
wants to operate the courses-in
his first appearance on the stand.
This was followed by new disclo-
sures from o General Accounting
once auditor on Mr.. Leoffier's
bookkeeping system.
Study at Poulson Request.
The auditor. Bertran1 b. Barr,
said he had made q study of the
Leofder company books at the re-
quest of Mr.. Poulson and that
1t was not an audit as such. Mr..
Poulson is q certified public ac-
countant by profession.
The auditor said his study dis
closed q complete lack of re-
sponsibility on the part of the
concessionaire."
The methods employed In han
ding income by Mr.. Leoffier the
'loose disbursements and involve
ment In questionable transactions"
pointed up the lack of RESPONSE
bility, he stated.
MIR. Barr criticized the interior
Department, saying:
while the contract appears to
provide for some semblance of
control, the records do not estab-
lish that any control was ex-
ercised by the administrative
agency"
Could "Dissipate Funds"
Mr.. Leoffier was I'm O position to
"dissipate or otherwise dispose of
funds at will which included
profits due the Government" he
stated.
Representative Bentson, Demo-
crat. Of Texas, asked Mr.. Barr II
he thought there was any fraud
shown by the books.
Mr.. poulson objected to the
question, saying he felt 1t was the
duty Of the committee to decide If
there was fraud from the facts
presented by the GAO. Chairman
Redden told Mr.. Barr to answer
the question If he could.
Such q determination requires
q legal determination" Mr.. Barr
said. "I prefer not to answer the
question"
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