Mr. HARRAH. In the Bunker Hill Corp., correct. Mr. DONOHUE. How much did you get for your stock? Mr. DONOHUE. Yes. Mr. HARRAH. I got exactly what I paid for it, $5,000. Mr. DONOHUE. I thought in your testimony here within the last 15 minutes you said-you did not sell it back to the corporation, I take it? Mr. HARRAH. Not back to the Bunker Hill Corp.; no, sir. Mr. DONOHUE. You sold it to this other company, this loan comthat you were associated with? pany Mr. HARRAH. That is right. Mr. DONOHUE. And that you are a director of? Mr. HARRAH. That is right. I discharged an obligation that I had with that company and used the stock to do it. Mr. DONOHUE. And you did this all because you liked schools? Mr. HARRAH. Oh, no. I did not testify to that, Mr. Donohue. I testified that I do like schools and I still do, but I also testified that I could see where I would ultimately have certain personal gain from the growth of friendships that I would get in various other schools from the use of the trained personnel when as, and if they graduated, by having the pick of them, and also by the use of the various students in their off time I would have a labor market. Mr. DONOHUE. I have no further questions. Mr. BROWNSON. Did the Bunker Hill Aeronautic School at any time rent space on the Bunker Hill base from the Bunker Hill Corp.? I mean, you were talking about a lease. Now did they at any time actually rent space on any basis at all, month to month or otherwise? Mr. HARRAH. They rented a small building, as I recall it, that was formerly the post-office building that was used as the quarters for one of their employees, and I can't tell you exactly why the school rented the building instead of the employee. Mr. BROWNSON. This equipment, this War Assets surplus equipment, that was stored at one time at the Bunker Hill base, was it not? Mr. HARRAH. That was stored at one time on the Bunker Hill base. Mr. BROWNSON. Did the Bunker Hill Aeronautics School pay any rent to the Bunker Hill Corp. for the buildings and the space in which that material was stored? Mr. HARRAH. No; they did not. Mr. BROWNSON. They did not pay any rent. Did they offer to pay any rent? Mr. HARRAH. That question I cannot answer. It was supposed to be that the rental when the lease was entered into would take care of the preorganizational rentals. Mr. BROWNSON. Does the Bunker Hill organization have any claims among the liabilities? Is there anything where the Bunker Hill organization claims any moneys due from the Bunker Hill School of Aeronautics? Mr. HARRAH. A small amount; $57, I believe, if my memory is correct. Mr. BROWNSON. Is there any suit pending on that score? You mentioned a letter a little while ago, a letter to the Bunker Hill High School or public school or whatever agency that was, transferring the title of this material to the Bunker Hill School of Aeronautics. May I have the name of the man that signed that letter and his official position again? Mr. HARRAH. Mr. W. A. Heddleston signed the letter, and his official position-the letter is in evidence, sir. Mr. BROWNSON. One other thing. Did you at any time in the operation of either of these two corporations in which you were interested have a certified public accountant perform any audit or otherwise examine the books of those corporations? Mr. HARRAH. We did, sir. Mr. BROWNSON. You did have certified public accountants and auditors? Mr. HARRAH. Yes, sir. Mr. BROWNSON. Are the figures of those auditors available? Mr. HARRAH. I am quite sure they could be made available, sir. Mr. BROWNSON. I would very much like to have the figures of those auditors, Mr. Chairman, introduced as evidence, if they can be made available, as indicating the financial status of this operation at various times, particularly as refers to the Bunker Hill School of Aeronautics. Mr. BONNER. If there is no objection, they will be included in the record at this point, if you will furnish them. Mr. HARRAH. Yes, sir, I will see that they are furnished, Mr. Chairman. (The documents above referred to, marked "Exhibits 13A-131," follow :) EXHIBIT 13A COPIES OF FINANCIAL REPORTS ISSUED TO DIRECTORS OR TRUSTEES OF INDIANA SCHOOL OF AERONAUTICS, INC. (FORMERLY KNOWN AS BUNK HILL SCHOOL OF AERONAUTICS, INC.), AND PREPARED BY ZICK, CAMPBELL & ROSE, ACCOUNTANTS AND AUDITORS, OF SOUTH BEND, IND., FOR PERIOD FEBRUARY 1, 1947, THROUGH NOVEMBER 30, 1948 Balance sheet, Mar. 31, 1947 ASSETS Current assets: Cash on deposit, Wabash Valley Trust Co. (schedule 1). $5,450. 70 6, 921. 45 2, 627.85 15, 000, 00 $15,000.00 15,000.00 EXHIBIT 13A-Continued SCHEDULE 1.-Statement of cash receipts and disbursements, period, Feb. 1 to Date 1947 Mar. 31, 1947 CASH RECEIPTS Mar. 25 Don De Tray: Cash advanced. James E. Short: Cash advanced.. 25 L. O. Zick: Cash advanced.. 25 Total cash receipts.... Amount $5,000.00 5,000.00 5,000.00 15,000.00 Other assets and deferred charges: Organization expense (schedule A-1).. 11, 591. 57 12,291,57 3,824.76 EXHIBIT 13B-Continued Date 1947 Feb. 12 SCHEDULE A-1.—Analysis of organization expense, as of Apr. 30, 1947 Mar. 6 17 24 H. L. Pemberton: Travel expense to Jan. 31, 1947. 3 weeks' salary, Mar. 1 to 22, 1947. 24 H. L. Pemberton: Travel expense. Apr. 3 James W. Alexander: 2 weeks' salary, Mar. 23 to Apr. 5, 1947. 8 H. L. Pemberton: Travel expense, Mar. 22 to 29, 1947. Travel expense, Mar. 30 to Apr. 5, 1947. 21 James W. Alexander: 2 weeks' salary, Apr. 6 to 19, 1947. 30 Telephone charges to date.. 30 H. L. Pemberton: Travel expense.. 30 Zick, Campbell, and Rose: Service, telephone etc.. Rent, heat, light and water.. Telephone and telegraph. 30 Zick, Campbell and Rose: Stationery and supplies. 30 Federal Security taxes, old-age benefit tax on employees. 30 Interest accrued on notes payable.... Total.... $1, 262.46. 618.87 320.38 145.50 29.10. 246.88 97.00 119. 11 107.80 97.00 4.66 339.65 265.87 42.75 19.50 14.80. 3.43 90.00, 3,824.76 SCHEDULE A-2.—Analysis of accounts payable, Apr. 30, 1947 May 2 EXHIBIT 13C-Continued Statement of cash receipts and disbursements, May 1 to 31, 1947 May 1 Cash balance (general account). - $920.58 5,000.00 5,000.00 161.95 42.75 10,204.70 11,125. 28 Check No. 115-J. W. Alexander: Salary, $48.50, minus old-age benefits, $0.49.. 48.01 48.01 Check No. 118-J. L. Harker: Salary, $36.00, minus old-age benefits, $0.36, and 33.04 Check No. 119-J. L. Harker: Salary, $39.26, minus old-age benefits, $0.40, and 36.30 Check No. 120-H. L. Pemberton: Expense, week ended Apr. 14. 158.86 74.02 5 Check No. 122-Bunker Hill Corp.: Telephone, Feb. 13 to Apr. 12, 1947. 19.50 8.00 Check No. 127-Treasurer of the U. S.: Documents 6538035 and 6838034. Check No. 143-J. W. Alexander: Salary, $48.50, minus old-age benefits, $0.49. Check No. 142-J. L. Harker: Salary, $24, minus old-age benefits $0.24, and with- 105.99 23.26 48.01 11.52 22.72 Check No. 148-Pennsylvania R. R.: Freight. Check No. 147-Air Associates, Inc.: Supplies. 119.36 74.08 Check No. 149-Wabash Valley Trust Co.: To open payroll account. 157.00 Check No. 150-Wabash Valley Trust Co.: Transfer to payroll account. 400.00 360.00 Total cash disbursements. Cash in bank (general account) May 31, 1947. 10.851.85 273.43 Check No. 114-J. Rutligliano: Salary, $33.06, minus old age benefits, $0.33, and Check No. 113-Hugh Scatten: Salary, $43.20, minus old-age benefits, $0.43, and Check No. 111-J. W. Alexander: Salary, $48.50, minus old-age benefits, $0.49. Check No. 107-J. W. Alexander: Salary, $48.50, minus old-age benefits, $0.49. Check No. 106-J. B. Adams, May 17-23: Salary, $95, minus old-age benefits, Check No. 105-J. Rutligliano: Salary, $42.50, minus old-age benefits, $0.43, and Check No. 102-G. E. Crandall: Salary, $21.25, minus old-age benefits, $0.21. Check No. 100-J. W. Alexander: Salary, $48.50, minus old-age benefits, $0.49. 48. 01 47.76 21.04 42.07 19.24 36,67 81.45 48.01 202 05 48.01 36.97 38.97 28.83 |