IN WITNESS WHEREOF, The parties hereto have hereunder subscribed their names and affixed their seals, the day and year first above written.

WITNESSES:

UNITED STATES OF AMERICA,

By

Assistant Secretary,

Department of the Interior.

By

Concessioner.

Mr. JONES. I note that that contract is signed by Mr. Oscar L. Chapman, Assistant Secretary, Department of the Interior.

Is it the policy of the Department of the Interior to actually enter into the contract with the concessionnaires rather than the Park Service Director, or an Associate Director?

Mr. DRURY. Yes.

Mr. JONES. So that all of this criticism is really due to the Department of the Interior's policy; is that right, rather than the Park Service?

Mr. TOLSON. The contracts are entered into and are based upon the recommendations of the Director of the National Park Service.

Mr. JONES. In each case have you, since you have been director, Mr. Drury, recommended to the Secretary of the Interior the contracts that, have been entered into with the concessionnaires?

Mr. DRURY. Yes.

Mr. JONES. Do the present contracts provide for a 25 percent take after 6 percent of the profits?

Mr. DRURY. Not universally. There are some of the contracts-in fact, we are negotiating a new one now-which provide for a percentage of the gross return of the business and not a percentage of the net profit over a given priority. In general, this method of taking a percentage of the net has been followed because that has more or less been the only basis upon which these investors of private capital would contract to render the service that had to be rendered. We find that some of the concessions, however, would prefer to operate on the basis of the percentage of the gross, and we are glad to work that out if we can.

LIST OF CONCESSIONAIRES OPERATING ON PERCENTAGE BASIS

Mr. JONES. Will you put a list of those into the record that are on the basis of gross profit?

Mr. DRURY. Yes.

Mr. JONES. And complete the list with the formula that you use with concessionaires, those that are still existing, the 25 percent of the net profit and the 6 percent of the earnings.

Mr. DRURY. The so-called profit-sharing contracts.

(The matter referred to is as follows:)

LIST OF CONCESSIONAIRES OPERATING ON A PERCENTAGE OF GROSS REVENUE BASIS

Acadia.-Charles H. and Mary L. Rich.
Glacier.-Glacier Park Transport Co.

Grand Canyon.-Fred Harvey, Emery C. Kolb.

Grand Teton.-Harrison R. Crandall.

Mount Rainier.-Trams, Inc.

Rocky Mountain.—Mrs. Edna B. Bishop, Rocky Mountain Motor Co.
Sequoia.-Sequoia and Kings Canyon National Parks Co.
Yellowstone.-Hamilton Stores, Inc., Haynes, Inc.
Yosemite.-The Western Union Telegraph Co.
Fort McHenry.-Kenneth Curtis.
Perry's Victory.-Tower Optical Co.
Statue of Liberty.-Tower Optical Co.

RECORD OF RENEWAL OF CONCESSION CONTRACTS

Mr. JONES. Now, this will represent all the contracts with concessionnaires showing what their contract was before renewal and what it is now with reference to net profits, gross profits, or a combination of both, or one or the other.

Mr. DRURY. Yes.

Mr. JONES. Those that are still in existence you will have in one place.

Mr. DRURY. Yes. As of what date?

Mr. JONES. The latest date for which you have information.

Mr. DRURY. The renewals after what date?

Mr. JONES. I want to pick up all of those that have been renewed since I went into it thoroughly in 1941.

Mr. DRURY. Yes.

(The matter referred to is as follows:)

Record of renewal of concession contracts which have expired since 1941-Continued

Franchise fee provision
(unchanged unless
noted below)