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Lessor identified on Page 2 hereby rents to the customer(s) undersigned on Page 2 (herein called "Customer") the motor vehicle described on Page 2 therein colled "ve subject to all the terms and provisions on Page 1 and Page 2 of this Rental Agreement, in consideration whereof Customer acknowledges and agrees:

1. Vehicle is the property of Lessor and is in good mechanical condition. Customer will return vehicle, together with all tires, tools, accessories and equipment, in the same condition as when received, ordinary wear and tear excepted, to the place and on the date specified on Page 2, or sooner if demanded by Lessor.

2. Under no circumstances shall vehicle be used, operated or driven: (A) for the transportation of persons or property for hire; (B) by any person in violation of low as to age, or by any person who has given to Lessor a fictitious name or false age or address; (C)-in any race, speed test or contest; (D) to propel or tow any vehicle or trailer; or (E) by any person other than Customer, except (1) a member of Customer's immediate family; (2) Customer's employer; (3) on employee of Customer in the course of such employee's regular and usual employment by Customer; PROVIDED that any such person specified in (1), (2) or (3) must have first obtained Customer's permission, and PROVIDED FURTHER that no person, including Customer, shall operate or drive vehicle unless such person is a qualified licensed driver. The foregoing restrictions are cumulative, and each of them shall apply to every use, operation or driving of vehicle.

4.

Customer or the driver of vehicle shall in no event be or be deemed the agent, servant or employee of Lessor in any manner or for any purpose whatsoever; 5. Lessor shall not be liable for loss of or damage to any property left, stored or transported by Customer or any other person in or upon vehicle either before or after the return thereof to Lessor, whether or not said loss or damage was caused by or related to the negligence of Lessor, its agents, servants or employees. Customer hereby assumes all risk of such loss or damage and waives all claims against Lessor by reason thereof, and Customer hereby agrees to hold lessor harmless from and to defend and indemnity Lessor against all claims based upon or arising out of such loss or damage.

Customer shall not be liable to Lessor on account of non-collision losses to vehicle covered by a standard comprehensive insurance policy, including losses due to fire and theft.

7.

Vehicle is covered by an automobile liability insurance policy, a copy of which is available for inspection at the main offices of Lessor upon request by Customer Said policy contains bodily injury or death liability limits of $100,000 for each person in each accident, $300,000 limits for all persons in each ccident, and property damage liability limits of $25,000 for each accident. Customer, being an assured under said policy, agrees to comply with and be bound by all terms, conditions, limitations and restrictions thereof, which are hereby incorporated by reference herein and made a part of this Rental Agreement as fully as if set fog of length, including those terms, conditions, limitations and restrictions of which no specific mention is made herein. It is a requirement of said policy that Customer or the driver of the vehicle must inime diately after any accident report the same to Lessor at the location where vehicle was delivered to Customer, and must immediately deliver to Lessor at said location, or to the insurer, every process, pleading or paper of any kind relating to any claim, demand, suit or proceeding, received by Customer or said driver in connection with any accident or occurrence involving vehicle. Said policy further requires that Customer and the driver shall refrain from aiding or abetting the assertion of any claim, and shall cooperate with Lessor and the insurer in the investigation and defense of any claim or suit. Said policy does not apply to (A) any obligation for which Customer or the driver of vehicle, or any insurance carrier, may be held liable under any workmen's compensation or disability benefits law, or under any similar law; (B) any obligation assumed by Customer gr (0) any liability of Customer or the driver, or of the employer of either, with resist operated by any person in violation of law as to age; (2) in any race or or by such driver under any contract of whatever nature; (C) injury to or destruction of property owned by, rented to, in charge of or transported by Customer or the driver? injury, sickness, disease or death, or damage to property, caused while vehicle is being used to carry passengers for a consideration, express or implied, or while being speed test or contest; (3) to propel or tow any trailer or vehicle used as a trailer: (4) by any person other than (a) Customer, (b) Customer's employer, (c) a person regularly employed by Customer in the usual course of his business, (d) any partner or executive officer of Customer, or (e) member of the immediate family of Customer or of any partner or executive officer of Customer, provided, however, that no such member of the immediate family is insured under the policy unless said person is a qualified licensed operator; or (5) by any person who has given a fictitious name or false address to Lessor. Notwithstanding anything herein contained, if any of the terms, conditions, limitations or restrictions of said policy are in conflict with the statutes of the state wherein vehicle is rented, said policy is hereby amended to conform to such statutes. In states where permitted by law or regulation (and to the extent so permitted), the liability coverage described above may be subject to the same terms, conditions, restrictions and limitations hereinbefore described, under a bond or self-insurance or similar arrangement, in lieu of or in combination with such policy.

8. For provisions, relating to collision damage waiver see Page 2.

9.

The number of miles over which the vehicle shall have been operated pursuant to this Rental Agreement shall be determined by reading the standard mileage recording device attached to the vehicle by the manufacturer.

10. Without limitation of any general obligations or responsibilities imposed by other provisions of this Rental Agreement, Customer shall be solely liable and responsible for all fines, penalties and forfeitures imposed for parking or traffic violations while the vehicle is held, used, operated, or driven pursipant to this. Rental Agreement. 11. No right of Lessor under this Rental Agreement may be waived except by a written instrument duly signed by the President and Secretary of Lessor. Page 1

JUN 2 1 1968

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Q. The G.A.O. audit of your travel during the 89th Congress was unable to turn up any record of your transportation to and from Miami for the period we have been talking about. Can you account for the absence of any record of your travel?

A. No, I cannot.

Q. Did you travel on that occasion on an air line ticket purchased with Committee funds?

A. I would assume so.

Q. Mr. Schwartz, I now hand you what has been marked "Witness Schwartz Exhibit Number 4" for identification, being a spread sheet prepared by G.A.O. showing the partial results of the audit of your travel and specifically reflecting the trips we have discussed here today and also showing certain travel by air where where part of the air line ticket has not been used or returned for refund according to air line records. Would you examine the exhibit and tell us whether you have any objection to the exhibit being introduced into the record at the hearings which the Special Subcommittee on Contracts of the Committee on House Administration will hold beginning December 19?

A. I have no objection to this exhibit being introduced into the hearing record. MICHAEL SCHWARZ.

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DISTRICT OF COLUMBIA, Ss:

Before me, Irene D. Stolman, a Notary Public in and for the District of Columbia, on this 16th day of December, 1966, personally appeared Michael Schwartz and gave oath that the foregoing anwers to the foregoing questions are true to the best of his knowledge.

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My commission expires June 30, 1971.

*

IRENE D. STOLMAN, Notary Public, District of Columbia.

Mr. TAYLER. May those exhibits be inserted at the appropriate place?

Mr. HAYS. At the appropriate place. Do we have any other witnesses?

Mr. O'CONNOR. That concludes the witness schedule. Miss Flores is not here. Mr. McCarthy, for who a subpena was issued is confined to a hospital in New York and we have directed a letter to him requesting that he appear at the hearing on December 29. At that time it had been our intention to recall Mr. Stone. We will recall Mr. Stone on the 29th of December.

Mr. HAYS. Call Mr. Warren.

We

Whereupon JOHN E. WARREN was recalled and having been previously sworn, was examined and testified further as follows: Mr. HAYS. Mr. Warren, you have previously been sworn. have excused you until we obtained this voucher. We now have the voucher.

By Mr. O'CONNOR:

Q. Mr. Warren, I show you voucher No. 3337 dated September 30, 1965, in the amount of $69.80 and ask you if you recognize your signature on that voucher and whether or not you submitted it? A. Yes, sir; this is my signature.

Q. Do you recall now submitting that voucher for travel to New York?

A. I do recall it, but I cannot remember what was connected with it at the time. As I told you before, I did not even remember signing the voucher.

Mr. HAYS. But you did go to New York and return and the claim is for a trip that you actually made.

Mr. O'CONNOR. Did you own an automobile in September 1965? The WITNESS. No, I did not, sir. I have driven Mr. Clark's car be cause as I said, I have gone to New York with him on occasion. I did not own a car then.

By Mr. O'CONNOR:

Q. Was Mr. Clark with you at all times when you made the trip by car?

A. Yes, he was.

Q. You have no explanation, then, as to how that voucher was submitted by you for reimbursement of automobile travel when you did not own a car and Mr. Clark was in his own car whenever you went up with him?

A. No, truthfully, I cannot remember anything connected with that.

Mr. O'CONNOR. May that be marked "Warren Exhibit 4"?

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