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EXHIBIT B.-Income and expense statement, bridge-With deduction for operation of ferry from June 13, 1941, to Dec. 31, 1960—Continued

Deduct general and administrative expenses:

Salaries of commissioners___

Salary of bridge manager--

Salaries of bridge bookkeeper and other clerical___.

Salaries of secretaries and attorneys to commissioners_

[blocks in formation]

Auditing, trustees and fiscal agent, and legal fees----
Interest and penalties on taxes---

Expense incurred in connection with death of employee....
Christmas gifts or bonus to employees‒‒‒‒

Total general and administrative expenses

Net profit on operations-‒‒‒

46, 923. 32

115, 202.00

68, 461.35

68, 182. 08 23, 950.00 46,901. 08 9,000.00 1,900.00 2, 305. 42 49,778. 09 22,529.46 128, 107. 09 201, 447. 79 60, 317.85 465. 84 1, 721.51 17, 700.00

864, 892. 88

2,403, 185. 55

5, 370.00 420.00 8,328. 45

4.66

4, 188. 79

[blocks in formation]

25, 675. 80

43, 987.70

2, 447, 173. 25

333, 469. 79 9, 775.00 35, 160. 77 2,000.00

1,046, 496. 85 14, 830. 23

1, 441, 732. 64

1, 005, 440. 61 15, 052.00

990, 388. 61

EXHIBIT C.-Income and expense statement, Ferry-from July 23, 1941, to Dec. 31, 1960

Income: Ferry tolls, contracts, and miscellaneous income....

Deduct operating expenses:

Labor..

$10,447.63

Supplies.

Repairs

Taxes..

Insurance

Miscellaneous_.

Interest on notes payable---

Total operating expenses

Net loss on operations---

Less other income:

Cash over....

Adjustment of prior year items__.

Total other income_.

Net loss.-

Senator KERR. The Senator from Michigan?

15, 392. 23 2, 142. 55 2, 863.66 632. 64 3, 634. 94 1, 360. 06 194.26

26, 220. 34

15, 772. 71

380.91

339.80

720. 71

15, 052. 00

Senator MCNAMARA. Do you receive a salary as the chairman of

the commission?

Mr. STALLINGS. Yes, sir.

Senator MCNAMARA. Is this a full-time charge?

Mr. STALLINGS. No, sir.

Senator MCNAMARA. How are you otherwise employed?

Mr. STALLINGS. I am a stockholder in Clark & Downs Lumber Co., Inc., of which I am a third owner, and I am also a third owner in a farming operation in the Wabash River bottoms.

Senator MCNAMARA. How much time do you devote to the business of chairman of the White County Bridge Commission?

Mr. STALLINGS. Once a month we have a regular meeting and approve or disapprove the bills and conduct the business.

Senator MCNAMARA. What-how many employees do you have in connection with the operation of the bridge now?

Mr. STALLINGS. There are nine toll takers, one maintenance man, a bridge superintendent, a bridge manager, and two office help, office secretaries.

Senator CASE. What is your salary?

Mr. STALLINGS. As chairman of the commission, sir, $100 a month. The other members are $50 a month.

Senator KERR. And free toll?

Mr. STALLINGS. Yes, sir.

(Discussion off the record.)

Senator CASE. Did you say that you are part owner of a lumber firm?

Mr. STALLINGS. Yes, sir.

Senator CASE. Do you sell materials, construction materials, generally?

Mr. STALLINGS. Yes, sir.

Senator CASE. Do you sell any materials to the commission?

Mr. STALLINGS. I have. This last spring I sold some picket fencing, and, other than that, I have not sold anything to amount to anything.

Senator CASE. How long have you been a member of the commission?

Mr. STALLINGS. About 4 years, sir.

Senator CASE. Does the commission have bylaws under which it operates? I noticed in the original act it was a corporate body politic. Do you have any rules or regulations with respect to purchasing material or supplies from firms in which members of the commission have any interest?

Mr. STALLINGS. Not that I know of, sir.

Senator CASE. You have no rules or regulations on that?

Mr. STALLINGS. No, sir.

Senator CASE. I noticed in the report that there is some reference to the purchase of some supplies from a publishing firm or newspaper, apparently, in which one member of the firm was interested at that time.

You have no rules against that?

Mr. STALLINGS. No, sir.

Senator MCNAMARA. I have one further question.

Do you agree that these bonds have been retired for a period of 6 years?

Mr. STALLINGS. Yes, sir.

Senator MCNAMARA. Which apparently was 2 years before you became a commissioner.

Mr. STALLINGS. Yes, sir.

Senator MCNAMARA. Do I understand that you are now in favor of a free bridge?

Mr. STALLINGS. Yes, sir.

Senator MCNAMARA. You did not have any experience with the bridge while it was paying off the bonds; you came later?

Mr. STALLINGS. That is right, sir.

Senator CASE. And you were not a member of the commission prior to the date of this 1956 report?

Mr. STALLINGS. No, sir.

Senator KERR. Who appointed you?

Mr. STALLINGS. The Secretary of Commerce.

Senator KERR. Are there other questions?

Senator COOPER. May I ask a question. Who is the bridge manager now?

Mr. STALLINGS. The bridge manager is Roy Clippinger.

Senator COOPER. He was bridge manager during the time covered by this investigation?

Mr. STALLINGS. Yes, sir.

Senator COOPER. And he has remained as bridge manager?
Mr. STALLINGS. Yes, sir.

Senator COOPER. Is he still the owner of this Carmi Publishing Co.? Mr. STALLINGS. I do not believe he is sole owner, sir. I know that he is very active in it.

Senator COOPER. Since this report was filed and since you have been chairman of the commission, has the commission checked to see if

the practices that were found in the report by the congressional committee have been stopped?

Mr. STALLINGS. Yes, sir.

Senator COOPER. Are you familiar with this report?

Mr. STALLINGS. Yes, sir, I have read it.

Senator COOPER. Does this Carmi Publishing Co. still print the tickets for the bridge?

Mr. STALLINGS. They print this monthly financial statement, sir. Senator KERR. They do whatever printing is done for the com

mission?

Mr. STALLINGS. Sir, I do not know whether they do all of it or not. Senator KERR. So far as you know, they do?

Mr. STALLINGS. Yes, sir.

Senator KERR. You are the chairman of the commission?

Mr. STALLINGS. Yes, sir.

That is rotated, sir.

Senator KERR. Sir?

Mr. STALLINGS. That is rotated. I am chairman this year.
Senator KERR. Other questions?

Senator PROUTY. What is the salary of the bridge manager?

Mr. STALLINGS. $8,900.

Senator PROUTY. How much time does he devote to that? That is Mr. Clippinger?

Mr. STALLINGS. Yes, sir.

Senator PROUTY. He operates this newspaper or publishing house? Mr. STALLINGS. Yes, sir. $8,591 salary.

Senator PROUTY. What do his duties consist of?

Mr. STALLINGS. Running and supervising and managing the bridge. Senator PROUTY. He is there most of the time?

Mr. STALLINGS. Yes, sir.

Senator COOPER. May I ask another question?

Senator KERR. The Senator from Vermont has the floor.

Senator PROUTY. Who operates the publishing company if he is spending his time managing the bridge?

Mr. STALLINGS. He does not work full time on the bridge commission. I mean he has his office help that takes care of, I presume, his Times business. He is always available for anything we want to ask in regard to the bridge.

Senator PROUTY. Can you estimate the actual amount of time he spends on the job at the bridge?

Mr. STALLINGS. I am afraid I could not, sir.

Senator KERR. Does he spend a day a week?

Mr. STALLINGS. Yes, sir.

Senator KERR. Two days a week?

Mr. STALLINGS. He is active in it daily, sir. I mean, how many hours, I could not say.

Senator KERR. The Senator from Kentucky?

Senator COOPER. The report which was made by a select committee of the House in 1956 found that certain improper practices were car

ried on by the Commission and by officers and employees of the Commission, among them being noted the printing that was carried out by the Carmi Publishing Co. without any bids; that there were unreasonable expense accounts by members of the Commission and by others; it implied that part of the salaries of the Carmi Times employees were paid by the Commission; and that equipment used by the Times had been purchased by the Commission.

Now, what has the Commission done since this report to make sure that these practices have not continued? Have you done anything about it?

Mr. STALLINGS. Sir, I do not know too much about the report other than the fact that I have read it. The insinuations in it of the Commission purchasing typewriters for the Times, that has not been done since I have been a member of the Commission.

Senator COOPER. Have these practices been stopped since you have been a member of the Commission and Chairman?

Mr. STALLINGS. The only thing that-I do not know specifically what you mean, but I mean I can say that as long as I have been on the Commission there has not been any equipment purchased for anything else other than the bridge.

Senator FONG. Does the bookkeeper-secretary still work for Mr. Clippinger on the Times?

Mr. STALLINGS. Yes, sir. There is a bookkeeper and the secretary. Senator FONG. He works for the bridge, and he works for Mr. Clippinger; is that right?

Mr. STALLINGS. Sir, the person in question is Miss Dorothy Brown, and she works full time for the Commission.

Senator FONG. What about the one bookkeeper?

Mr. STALLINGS. And she works for the Commission.

Senator FONG. Full time?

Mr. STALLINGS. As far as I know, yes, sir.

Senator FONG. Now, how about the general clerk?

sir.

Mr. STALLINGs. I do not think we have a general clerk, now, Senator FONG. According to this investigation, these three persons worked part time for the commission and part time for Mr. Clippinger, and according to this report here, that the financial deficit of the commission amounted to $40,000 in a 5-year period.

Do you know anything about that?

Mr. STALLINGS. No, sir.

Senator BOGGS. Mr. Chairman?

Senator KERR. The Senator from Delaware?

Senator BOGGS. May I ask one question.

Do you put out by way of advertisement for public bidding your printing now?

Mr. STALLINGS. No, sir.

Senator BOGGS. Do you put out by way of advertising for public bidding, for example, the materials that were bought from your lumber company?

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