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I had he just decided things this this, no. But

arrange for the ppes of colded never was

asked you to come in and endorse it and then they sent it down to the agency?

The WITNESS. I don't remember doing this, no. But I do remember this much: That after doing things this way, it was a very awkward transaction. We just decided not to do it that way again, and from then on I had charge of travel arrangements for much of the charges in the sense that I designated the cities for the poverty investigations and also discussed with the chief clerk the types of arrangements. That was to October 18, 1965. Then we didn't-we decided never to do it that way again. I remembered that instance because that was the wrong way to do it.

By Mr. O'CONNOR: Q. All of your other travel was obtained apparently through credit cards of the committee?

A. Of the chief clerk, that is right.
Q. And this is an unusual transaction?
A. It was an unusual transaction.
Q. That is the reason we are inquiring into it.

Mr. O'CONNOR. Mr. Chairman, may these be admitted as exhibits into the record? (See Anderson Exhibit 2).

Mr. Hays. Without objection.
Did you have a question?
Mr. WAGGONNER. Yes.

Earlier you made reference, Mr. Anderson, to a statement by Mr. O'Connor, counsel for this committee, that his statement clarified a mystery. What did you have reference to?

The WITNESS. Well, the primary mystery was the 14 trips. This is all I meani. Fourteen trips without claiming subsistence, I am told now, some of which were made without claiming subsistence. And also this was a mystery, too, this particular voucher in which I was paid $355, apparently signed for. But now it is clear to, that once I saw the GO agency voucher, I realized what had happened. I remembered how that transaction may have—Juanita-I forgot her last name—made the purchases of this.

I don't know how, but she made the purchases for Congresswoman Mink, Congressman Hawkins, and myself.

Mr. WAGGONNER. Is this, then, the awkwardness and methods to which you have alluded?

The WITNESS. No. I meant that to go through an agency-I remember it was just a troublesome-the whole thing was troublesome. There was—I mean this particular, the whole trip was troublesome arranging, because we had to delay it several times. That meant that we had to call the agency. And it was because the Elementary and Secondary Education Act was on the floor; we had to call the agency, the agency was angry because it had to change the reservations for the hotels, change the tickets again and again. And so we just decided that that was the wrong way to do it.

Mr. WAGGONNER. I have no further questions.
Mr. Hays. Mr. Devine?
Mr. DEVINE. No questions.
Mr. Jones. No questions.
Mr. Hays. Thank you very much, Mr. Anderson.

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.I CERTIFY that the above articles bave been received in good condition and in the quality and quantity above specified, or the services performed as stated, and that they are in accordance with the orders therefornthat the prices charged are just, reasonable, and in accordance with agreement. "AD HOC JOBCOMMITTEE ON THE

ADAM C. POWELL WAR ON POVERTY

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Mr. O'CONNOR. You will furnish that canceled check if you find it

The WITNESS. I will look through my records and I will tell you i I can find it. Mr. Hays. That is all. (Witness excused.) Mr. Hays. Off the record. (Discussion off the record.) Mr. Hays. Is there any other business before we adjourn for lunch?

Mr. DICK)NSON. Before we adjourn, what do you have planned for this afternoon?

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(Discussion off the record.)
Mr. Hays. The committee stands adjourned until 2 o'clock.

(Whereupon, at 12:34 p.m., the committee adjourned, to reconvene at 2 p.m., the same day.)

AFTERNOON SESSION

Mr. Hays. Rise and be sworn.

GEORGE G. GRAYSON, having been duly sworn, was examined and testified as follows: Mr. Hays. Would you state your name? The WITNESS. George G. Grayson. Mr. Hays. Your address? The WITNESS. 6100 Southwest 29th Street, Miami, Fla. Mr. Hays. Your title? The WITNESS. Director of revenue accounting, Eastern Airlines. Mr. Hays. Would you state the name of your counsel?

Mr. RUSSELL. Mr. Chairman, I am Harold L. Russell, of Atlanta, Ga. Our firm is general counsel for Eastern.

Mr. Hays. Mr. Grayson, you appear before this committee in response to a subpena duces tecum. Your testimony will be in executive session unless you request that it be in public session. If your appearance is in executive session, the public or press will not be admitted to the hearing room pursuant to paragraph 26, House of Representatives rule 11. Your testimony may not be released or used in public session without the consent of this committee. Of course, if your appearance is in public session, you understand, the press could come in. Do you choose which way would you like it?

The WITNESS. Executive session. Mr. Hays. You have counsel with you and we have already included his name in the record.

By Mr. O'CONNOR:
Q. Mr. Grayson, what is your capacity with Eastern Airlines?
A. Director of revenue accounting.
Q. Where do you office?
A. In Miami.
Q. What is the address in Miami?
A. 36th Street Airport.
Q. Miami, Fla.?

A. Yes.

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Q. Eastern Airlines has the credit card account for the House of Representatives in connection with air travel, do they not?

A. Yes, sir.

Q. Most of the travel booked, air travel booked by Representatives and members of the staff is on Eastern Airlines credit cards?

A. Yes, sir.

Q. A question has come up in connection with the hearings that the committee is conducting as to the distinction between a “Q” card and a card issued to an individual's name. Could you explain that difference?

A. The “Q” card permits the card holder to purchase transportation for anyone. The personal card permits him to charge transportation just for his own individual personal travel.

Q. On the "Q” card, can as many as 20 airline tickets be purchased at once for various individuals?

A. Yes, sir.

Q. What requirement of the airline is there as to the identity of the persons that are going to be traveling on those tickets?

A. None, sir.

Q. Can the purchaser supply the issuing agent with any name of a traveler?

A. Yes, sir.

Q. It is not necessary that the person in whose name that ticket is issued actually perform the travel?

A. The ticket is not transferrable.

Q. I understand it is not transferrable, but does the airline have any control as to whether the traveler indicated as John Smith is actually John Smith?

A. No, sir.

Q. You have indicated it is not transferrable. Does Eastern have any control as to whether traveler A purchases two tickets for he and

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traveler B, and then rather than traveler B perform the travel, traveler A would sell the ticket to some third party and receive the cash?

A. We have no control over that.

Q. Can you explain to us how the Eastern Air Lines services this account as far as travel on carriers other than Eastern are concerned ?

A. The procedure for purchasing tickets permits the individual cardholder to present the card to any ticket counter of a carrier who honors air travel cards. The honoring carrier then will issue tickets against a transportation receipt which is signed by the cardholder which authorizes the carrier to issue the ticket which the customer is asking for.

Q. Could you tell the committee how quickly after a ticket is issued on a credit card the particular account here on the Hill would be billed?

A. It will run approximately 45 days.

Q. In other words, if a ticket is purchased September 1 with one of your credit cards, the billing could be expected about October 15?

Ă. That is right.

Q. Would that hold true if the carrier was other than Eastern? Say, for instance, Northeast, or TWA?

A. Generally speaking, yes, sir.
Q. Within 45 days all billings would clear; is that correct?

Say, Generally spays all billing

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Q. When a person has utilized a travel card that is assigned to one of the committees of Congress and he uses it on personal business and subsequently refunds to that committee the value of the transportation or the value of the ticket; how is that refund handled?

A. Well, the procedure for the account to pay the bill is for the account to remit to our bank. The remittance may include one check or it may include several checks. The bank deposits those checkscheck or checks—and credits our account and identifies on the remittance slip which is a part of the statement the total amount of the deposits made by our customer in the bank.

Q. Is that remittance made directly to Eastern or would it-on the assumption a committee member traveled on personal business, but he used this credit card, 45 days later that billing would come into the committee?

A. Yes.

Q. At that time the user would write his check for the value of the transportation. Would that check be written to Eastern, or would it be written to the committee?

A. It has happened both ways.

Q. Do you have any regulations as to which way is preferable or which way it should be?

A. We ask them to make the remittance to the bank deposit box. The post office drop box, which is actually our bank address box.

Mr. Hays. Do you have any regulation as to whom the check is made out? It isn't made out to a bank. The WITNESS. To Eastern Airlines.

By Mr. O'CONNOR:
Q. You prefer the check to be drawn to Eastern Airlines?
A. Yes.

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