Evening star., 1961-04-30


commissions, advisory and
management fees. salaries, and
loans to the promoters and
their other corporations.
Mr.. Lee says his audit shows
the following paid to Mr.. Post
from funds collected from
Lakewood members: $99,217 in
management and advisory fees;
$5,420 in salaries; 5000 in
sales commissions, and $5,456
in loans.
To Mr.. Allen, he lists $14,-
485 in management and ad-
viSory fees: $6,504 in salaries;
$5,421 in sales commissions,
and $11 500 in loans.
To Mr.. Pickett, he lists $15,-
395 in management and ad-
visory fees; $7,5S8 in salaries;
$13,935 in sales commissions,
and So, 800 in loans.
A sum Of $98,S87 is listed as
paid to C. Wayne Freeland and
James z. Hayes Of Texas for
management and advisory fees.
Mr.. Allen said that he had
been associated with these two
men in western country club
ppAjects and that they did lay
out work and provided other
services and advice to the de-
velopers at Lakewood.
Mr.. Freeland and Mr.. Hayes
had a contract with the devel-
opers of Lakewood which pro-
vided for the Texans to get
10 per cent of the original sell
ing price of each membership
and a continuing contract for
Isl per month from each dues
paying member.
Also listed by Mr.. Lee as
having received loans from
Lakewood funds are: Pioneer
Point Associates, one of the cor
Iporations formed for the Gen.
treville, Md. project, $14,727;
Shore Club Estates, another
company in the Centreville
project, $30,917; QuidnesSett
Hotel and County Club Of
North Kingston, Rhode Island.
which is now in reorganization
under the bankruptcy act,
$4,817; Golf Contractors, Inc.
of Texas, q golf course conStruc-
ton firm which Mr.. Allen says
his group controls, $63, 3,695;
Glen Haven Country Club, Dali
las, Texas, $2,249; and Extenso
Hanger Co., a pantS-hanger
manufacturing concern organ
lied by Mr.. Post. $11.750.
Four corporations were in
volved in the Lakewood project:
Lakewood Country Club, Inc,
Lakewood Management Corp.
Country Club Development
Corp. and PAP (for Post, Allen
and Pickett) Inc.
Leasing Operation
| PAP leased the land from the
owner for $4,000 a year and
subleased it to Lakewood Coun-
try Club, Inc. for 500, 900. Coun-
try Club Developers carried out
the construction. Lakewood
Management had an agreement
with Lakewood Country Club,
Inc. to manage the operations.
Lakewood Country Club, Inc.
originally was under control of
a board selected by the three
developers. All the other cor
porations were controlled by the
developers.
Mr.. Allen said most Of the
loans described by Mr.. Lee as
coming from Lakewood Coun-
try Club funds actually did not
come from that source but were
business transactions among
the firms controlled by the de-
lvelopers and were no business
of the membership"
Mr.. Allen said the $99,217
listed by Mr.. Lee as a manage
ment fee to Mr.. Post was taken
out to put up as escrow for a
construction contract. He said
lit was subsequently put back
into the company by some
method or manner"
Mr.. Post declined to discuss
any Of his Business activities
with a reporter.
Mr.. Allen said the money
paid to Golf Contractors, Inc,
was for work done or scheduled
to be done at the Lakewood
project.
Instead Of the $530,000 figure
used by Mr.. Lee. Mr.. Allen esti-
mated that his group received
around 100000 in commits
sions for promotional work and
membership selling. He said
this was under a contract pro-
viding taht 80 per cent of the
membership fees would go for
this purpose. He said that
promotional expenses, such as
advertising, had to be paid out
of this.
Mr.. Allen said that his grouy
made mistake in not floatins
a loan in the beginning tC
provide enough funds to com
plete the work at Lakewood. HI
said that they could have Sc
cured financing If the dissatiS.
fled members had mot stirreC
things up."
Mr.. Davis, attorney for thu