planes out there, went to Freeman Field. Surely it wasn't our fault they didn't get a lease down there?

Mr. BONNER. Whose plane is that sitting across the road from the Bunker Hill Air Base?

Mr. LADD. Mr. Hutchcroft's back yard, that was moved from the school, Harrah or somebody I don't know who.

Mr. BONNER. That was originally?

Mr. LADD. It was originally on the base.

Mr. BONNER. Go ahead, sir.

Mr. LADD. That is about all I have to say. I have given about everything.

Mr. BONNER. Any questions?

Mr. HOFFMAN. NO.

Mr. BROWNSON. When did you sell the soybean processing plant? Mr. LADD. We have been trying to sell for the last 2 years and finally we arrived at a deal, finished the deal in February 28, 1951. Mr. BROWNSON. Before you sold the soybean processing plant did you process some of the soybeans which were raised on the base? Mr. LADD. Yes; we did.

Mr. BROWNSON. And whom did you buy those soybeans from? Mr. LADD. We bought those from different tenants, nobody was under any pressure to sell to us, we bought them from the tenants and from the Bunker Hill Corp.

Mr. BROWNSON. You say you bought some direct from the Bunker Hill Corp.?

Mr. LADD. That is right.

Mr. BROWNSON. Who determined the price that soybeans were sold?

Mr. LADD. Well it was market price. Everybody has about the same price in elevators all over the country.

Mr. BROWNSON. You paid the going market price on those?
Mr. LADD. As on any day.

Mr. BROWNSON. You sold those at the same price every other firm did on that day the soybeans were received?

Mr. LADD. That is right. In fact a year ago last fall we had to close down and the last of them that were sold were sold by owners in Bunker Hill and we didn't get as much for them there as what we were paying.

Mr. BROWNSON. That is all I have, Mr. Chairman.

Mr. CURTIS. No questions.

Mr. BURNSIDE. No questions.

Mr. LADD. I thank you for having a chance to answer some of these questions.

Mr. BONNER. This concludes the hearings on the Bunker Hill matter by the Subcommittee on Intergovernmental Relations of the House Committee on Expenditures in the Executive Departments.

I would like for the record to show that this subcommittee appreciates the kindness of Judge Bailey and his staff in assisting the subcommittee in obtaining the use of this courtroom.

(Whereupon, there being no objection, the hearings were closed at 12:45 a. m., on June 25, 1951.)

EXHIBIT 43

LEASE OF NAVAL AIRFIELD

THIS LEASE, made between THE UNITED STATES OF AMERICA, represented by the Chief of the Bureau of Yards and Docks, acting under the direction of the Secretary of the Navy, hereinafter called the Government, and the CITY OF BUNKER HILL, a municipality in the County of Miami, State of Indiana, hereinafter called the Lessee:

WITNESSETH:

WHEREAS the Government is the owner in fee simple of certain lands situated in the County of Miami, State of Indiana, upon which it has developed and operated an airfield and facilities for the activities of the United States Naval Air Station, Bunker Hill, Indiana; and,

WHEREAS because of its strategic value, it is considered essential that the said airfield and facilities, comprising the said United States Naval Air Station, be retained in a stand-by status for possible postwar use in connection with Naval Aviation activities; and,

WHEREAS during such period, the Government desires to make the airfield and the facilities thereon available to such public agency as may be interested in the use and occupancy thereof for operation as a public airport; and

WHEREAS during said stand-by period the use of the airfield and facilities for such purpose will in no wise be detrimental to the activities of the Navy De partment, but is deemed to be in the interest of the Government; and,

WHEREAS application has been made by the above-mentioned Lessee for the use and occupancy of said airfield and the facilities thereon for the purpose of operating the same as a public airport; and for such other purposes as may be deemed by the Government as being in the interest of the National Welfare:

NOW THEREFORE, in consideration of the foregoing and of the covenants and agreements herinafter mentioned, the Government, pursuant to the authority of section 5 (c) of the "Air Commerce Act, 1926," approved May 20, 1926 (44 Stat 570, 571; 49 U. S. C., sec 195 (c) the Act of April 4, 1944 (Public Law 289-78th Congress) having been complied with, does hereby rent, lease and demise unto the Lessee, to be occupied and used as a public airport, and for such other purposes as may be approved by the Government as being in the interest of the National Welfare, that certain tract of land, together with the improvements and installations thereon and appurtenances thereto belonging, enumerated and described in map of premises and installations of Naval Air Station, Bunker Hill, Indiana, in two parts entitled "Exhibit A" Part 1 and Part 2 attached hereto and made a part hereof, said tract of land being described as follows:

All those lands lying and being situate in Township 25 North, Range 3 East, and in Township 26 North, Range 3 East, Second Principal Meridian, Miami County, Indiana, more particularly described as follows:

Township 25 North, Range 3 East:

All of the north half of section 1

All of the northeast quarter of section 2

Township 26 North, Range 3 East:

All of section 25 lying south of the Pittsburgh, Cincinnati, Chicago, and St. Louis R. R. right-of-way

All of the east half of section 26 lying south of the Pittsburgh, Cincinnati, Chicago, and St. Louis R. R. right-of-way

All of the east half of section 35

All of section 36 containing 2,121.61 Acres, more or less, located in Miami County, Indiana

Subject to the rights of the State of Indiana and the County of Miami, Indiana, to use and occupy for road purposes only, that portion of Indiana State Highway known as U. S. Highway No. 21, running along the eastern boundary of the herein described lands, and that portion of the Miami County, Indiana road running along the Southern boundary of the berein described lands

SAVE AND EXCEPT the following listed buildings and structures known and identified as buildings or structure number 51, 69, 70, 4A, 4B, 15, 22, 26, 27, 29A, 29B, 29C, 29D, 29E, 29F, 29G, 29H, 291, 29L, 30A, 30B, 30C, 30G, 30H, 31A, 31B, 31E, 31F, and 46. Building number 15 remains as a structure only, the contents and equipment thereof having been removed TO HAVE AND TO HOLD the demised premises for the term commencing on the First day of January, 1947, and ending on the First day of January, 1948, unless

sconer terminated as hereinafter provided and subject to the following conditions and covenants:

1. This lease shall be deemed renewed from year to year upon the same terms and conditions as are herein specified, unless terminated by the Government as herein provided, or unless the Lessee shall send written notice to the Government not less than thirty (30) days before the expiration of the term hereof or any renewal term of its intention not to renew the lease, provided that no renewal shall extend the term of this lease beyond five years from the beginning date hereof. It is agreed, however, that the limitation of the extension of the term of this lease to a period of five years may be changed to provide for an extension for a period of twenty years in the event that both parties shall agree in the future that such is necessary and shall so signify their consent through a supplemental agreement to this lease.

2. The Lessee, in consideration of the leasing of the aforesaid premises, does hereby covenant and agree with the Government, that the annual rental for the occupancy and use of the demised premises shall be the sum of one ($1.00) dollar, per annum, payable in advance to the Commander, Naval Air Bases, Headquarters, Ninth Naval District, Glenview, Illinois, Attention District Disbursing Officer. It is understood by the Lessee, however, that the Government reserves unto itself the right to require the Lessee, at any time during the term of this lease or any renewal term, to pay additional rental for the demised premises, if and when, in the discretion of the Government the payment of additional rental is justified, provided, however, that it is not the intention of this provision to deny unto the Lessee the right to earn or derive a reasonable profit through the operation of the premises and facilities herein demised.

3. The Lessee, as a part of the consideration hereof, shall maintain and keep in good and serviceable condition and repair, the airfield, including the runways, landing mats, taxi strips and parking aprons, as well as all of the property enumerated in Exhibit A, Part 1 and Part 2, so as to adequately and properly protect the Government and its property from loss or damage. All costs and expenses incurred and paid by the Lessee in maintaining the said premises shall be borne by the Lessee and no part or portion thereof shall be reimbursed to the Lessee by the Government. The Lessee, at its own cost and expense shall repair and/or replace all damaged heating, electrical and plumbing fixtures delivered into its possession under the terms of this lease with others of substantially the same quality and will maintain and keep the demised premises in a clean, safe and healthful condition according to any applicable Federal or State Laws and municipal ordinances, and comply with all lawful directives by proper public officials in respect thereto during the term of this lease or any renewal thereof. Upon the expiration of this lease or earlier termination thereof, the Lessee will deliver up and surrender the demised premises to the Government in as good order, condition and repair as the demised premises were in at the beginning of the term of this lease, damage by flood, incendiaries, acts of God or of the public enemy, the elements, structural defects, ordinary wear, tear and deterioration and other causes beyond the Lessee's control excepted.

(a) In the event it becomes necessary to remove snow and ice from the runways, landing mats, taxi strips, and parking aprons on the demised premises, no salt or other deleterious substance or chemical shall be used which is likely to cause damage to any of said facilities.

(b) It is understood by the parties hereto that the area identified upon Exhibit A, Part 2, as the "Landing Map," and delineated in green, has a bituminous surface and may be expected to deteriorate rapidly, and that the Lessee will be required to exercise no more than ordinary care toward this area in complying with the terms of the foregoing provision.

4. The Lessee has examined and knows the condition of the demised premises as of the date hereof. In is understood by the Lessee that the said premises are leased as they are and the Lessee acknowledges that no agreement or promise to decorate, alter, repair or improve said premises, either before or after the execution of this lease, not contained herein has been made and that no representations as to the condition and repair thereof have been made by the Government prior to or at the time of the execution of this lease that are not herein expressed. Nothing herein contained shall be deemed to imply any obligation on the part of the Government to furnish the Lessee with any utility services whatsoever, it being expressly understood and agreed that the Lessee shall obtain such services at the Lessee's sole cost and expense and the Lessee shall pay, in addition to the rent above specified, all water rates or rents and all charges for gas, electric light, and power.

5. The Lessee shall, during the term of this lease, or any renewal thereof, have the right to make alterations, attach fixtures and erect additions, temporary structures or signs in and upon the premises hereby leased; provided, however, that no structural alterations or additions shall be made by the Lessee except by written consent of the Government. The Lessee shall have the further right, during the term of this lease, or any such renewal to install equipment, fixtures and other property owned by the Lessee. The title to all of such property installed in or constructed upon the demised premises by the Lessee shall remain in the Lessee, shall be kept free of mechanics' liens or other encumbrances, and may be removed by the Lessee upon the expiration of this lease or immediately upon the earlier termination thereof. In the event of the failure of the Lessee so to remove its fixtures, additions, temporary structures or other property, the Government may remove the same from the demised premises and charge the Lessee with the cost thereof and without liability to the Lessee for any damage to the Lessee's property by reason of the removal or disposition thereof.

The

6. The Lessee agrees that, continuously during the term of this lease, or any renewal term the airfield and the facilities thereon will be operated as a public airport, and for such other activities as may be approved by the Government as being in the interest of aeronautics and aviation; provided, however, that such activities shall not in any manner interfere with the operation of the airfield and facilities as a public airport. The Lessee further agrees that unless utilized exclusively for military purposes, the airfield and facilities will at all times be operated for the benefit of the public, on reasonable terms and without unjust discrimination and without any grant or exercise or any exclusive right for the use of the airfield or any of the facilities thereon in air commerce. The Lessee agrees that it will not enter into any transaction which would operate to deprive it of any of the rights and powers necessary to perform all of the covenants and agreements herein made, unless by such transaction the obligation to perform such covenants and agreements is assumed by another public agency. Lessee in connection with the operation of the facilities covered by this lease, shall comply with all rules and regulations of the Navy Department, and all rules and regulations of Civil Aeronautics Board, and the United States Department of Commerce, acting by or through the Civil Aeronautics Administration applicable to the operation and management of public airports. As a part of the airport the Lessee may, if it so desires, operate the recreation facilities delivered hereunder to its possession for the public and for such other purposes in the public interest as may be approved by the Government. In order that every possible use may be made of the demised premises in the interest of the public, so much of the airfield and the facilities thereon as may not be required by the Lessee in connection with the operation of a public airport, may be utilized for such nonprofit activities as may be approved by the Government as being in the interest of the National Welfare; provided, however, that such activities shall not interfere with the operation of the airfield and facilities as a public airport.

71. The Lessee shall have the right and privilege of contracting with any commercial air carrier, certified by the Civil Aeronautics Board for the use of the landing area at said airfield for the loading and unloading of carrier aircraft. with the right of collecting all fees and revenues therefrom and further, subject to enforcement of reasonable rules and regulations, shall have the right and privilege to enter into airport service agreements with any qualified person or concern desiring to conduct operations at the airport such as the operation of flying schools, rental of aircraft, charter flying, sale and repair of aircraft, and other similar aeronautical activities. The Lessee shall have the right to provide through concessions or operational or management agreements for the operation of any business or enterprise which is reasonably necessary to the proper conduct and operation of a public airport and for the convenience of the general public using air transportation facilities in domestic and foreign commerce, or for the operation of any non-profit activities covered in Clause No. 6 hereof. The lessee agrees that it will not authorize the use of occupancy of any part or portion of the demised premises or any facility or installation thereon, by any third party whatsoever, unless such use and occupancy is evidenced by some instrument. in writing, and signed by such third party. The Lessee agrees that it will not execute any lease, license, permit, operational or management agreement, or any other instrument affecting the demised premises, or any portion or facility thereaf or interest therein to accomplish such purposes, unless thirty (30) days' notice of its intention so to do, in writing, has been received by the Chief of the Burean of Yards and Docks, Navy Department, Washington, District of Columbia, and

the representative of the Government herein named. A copy of the instrument in question shall be attached to such notice for the approval and consent of the Chief of the Bureau of Yards and Docks. The said instrument shall state the date upon which it will be executed. After such execution properly authenticated copies of all such instruments shall be furnished the Chief of the Bureau of Yards and Docks and the said representative of the Government.

8. The Lessee or any party to an operational or management agreement with the Lessee, shall keep upon said demised premise, records and books of account which shall show all revenues received in, on or from the demised premises, together with all expenditures for costs and expenses incurred in connection with the operation and maintenance of the said premises. The method of accounting shall be subject to the approval of the representative of the Government hereinafter named, but no material change need be made in any system of accounting adopted by the Lessee or party to any operational or management agreement, so long as such system reflects accurately, and in detail, the matters and things herein enumerated.

9. The Lessee or any party to an operational or management agreement shall deliver to the representative of the Government, quarterly reports of all receipts and expenditures of its dealings and transactions in connection with the use and occupancy of the demised premises under this lease. Such reports shall be sworn to by a duly authorized representative of the Lessee, or by the party to an operational or management agreement. All of such records and books of account shall, at all reasonable times, be open to the Government for the purposes of inspection and audit. A complete audit by the representative of the Government shall be made of the said records and books of account annually, a copy of which shall be forwarded for the records of the Chief of the Bureau of Yards and Docks, Real Estate Division, Navy Department, Washington, D.C. 10. The Lessee, insofar as is within its power and reasonably possible, will prevent any use of the land either within or without the boundaries of the airfield, including the construction, erection, alterations, or growth, of any structure or other object thereon, which would be a hazard to the landing, take-off, or maneuvering of aircraft at the airfield, or otherwise limit its usefulness an an airport. The Lessee further covenants and agrees, with respect to land outside the boundaries of the airport, to remove or cause to be removed any growth, structure or other object thereon, which would be a hazard to the landing, taking-off or maneuvering of aricraft at the airport, or otherwise limit its usefulness an an airport. The Lessee agrees that the airport approach standards to be followed in this connection shall be those established by the Civil Aeronautics Administrator in Office of Airports Drawing No. 672, dated September 1, 1946. The Lessee further agrees that, insofar as legally possible, it will adopt and enforce zoning ordinances and regulations to safeguard aircraft flight operations within the airport hazard areas as defined in the above-mentioned drawing, prohibiting the creation, establishment, erection and construction of hazards to air navigation and, insofar as is reasonably possible, to acquire such easements or other interests in lands and air space as may be necessary to perform the covenants of this provision.

11. The Lessee agrees that in any contract or agreement entered into between it and any commercial air carrier or other aircraft, under which such carrier or aircraft is authorized to operate at said airfield, or in any lease, license, permit or other instrument under which any concessionaire is authorized to use any of the facilities upon the demised premises, the Lessee shall require such commercial air carrier, other aircraft or concessionaire to keep and maintain in force liability insurance policies in an amount or amounts sufficient to indemnify and save harmless the Government against any expense, claims or demands for the death or injury of any person, or loss, destruction or damage to Government property occasioned by the operation of aircraft at said airfield or the use and occupancy of any of the facilities thereon by any third parties.

12. In the event that death or injury occurs to any person, or loss, destruction or damage occurs to any property in connection with the maintenance, operation, repair, or use of the airfield and the facilities covered hereunder; occasioned by the acts or omissions of the Lessee, its officers, agents or employees, or by the operation of any aircraft (other than aircraft of the United States of America) or other means of transportation, the Lessee agrees to identify and save harmless the Government from and against any loss, expense, claims or demands to which the Government may be subjected as a result of such death, loss, destruction or damage.