We accept full liability for any charges incurred which are not paid by com. 10 Day GENERAL DYNAMICS PRIVATE INFORMATION Mr. SHELBY. For example, you billed the government for over $100,000 for a 1-week quarterly review for a meeting held at a plush resort near Charleston, S.C. in November 1983, for 70 General Dynamics' executives and spouses. Room costs for Lester Crown and his wife amounted to $191 a night. How can you explain this? Is this going to meet your acid test to the American taxpayer? Mr. LEWIS. I think so, yes. Would you care for me to―― Mr. SHELBY. I want you to explain that. I think the American people would like to hear it. Mr. LEWIS. We have a very-as large as it is, and as many divisions as we have, we have a very well coordinated corporation, and the people in that corporation, unlike the way they were maybe 15 years ago, are all one team. And as an example of that, when we have openings in one division or another, people from all divisions of the company are eligible for that job. So every time one of our divisions-we are on the forefront of technology all the time, and when it gets in trouble, we need to use the assets of the whole corporation. Getting those people to know each other on a first-name basis, the management and top people, is extremely important. We do this four times a year. Obviously they are called quarterly meetings. We have, I believe, on three or four occasions found it was very helpful to improve communications, get a better understanding of the divisions, so that the divisions and their people can help each other. Mr. SHELBY. Why didn't you have that meeting in St. Louis? Mr. SHELBY. Why didn't you have this one in St. Louis? It cost $100,000. Mr. LEWIS. Three of these meetings each year are held in St. Louis, very intensively, and we have felt that it is a good effort, its very important to the overall success of the company, that the people and their wives and the families know each other as best we can. Mr. SHELBY. Mr. Lewis, why does your company continue to submit nongovernment business charges for charges in your corporate overhead? Is the government supposed to watch you like a child? Is the government expected to catch your deliberate and illegitimate charges and then say, "We are going to audit you on every item?" Don't you owe more to the American people than that, being the No. 1 defense contractor in the United States? Mr. LEWIS. I don't really think you have categorized our attitude toward these things accurately, sir. Mr. SHELBY. Well, I think these documents speak for themselves-I will yield back to my friend from Michigan. Mr. DINGELL. Is there a Mr. A.M. Lovelace and his wife that went to the NASA silver anniversary dinner-Kiawah Island Resort for a quarterly meeting in November 1983? Is that right? Mr. LEWIS. I believe he did, yes, sir. Mr. DINGELL. And he vouchered that to General Dynamics, did he, as a business expense? Mr. Lewis. All of the expenses of that, I believe, were submitted in one Mr. DINGELL. Were these expenses charged to the government? Mr. LEWIS. Was he especially? Mr. DINGELL. Were the expenses that Mr. Lovelace and his wife vouchered to the company in turn charged to the government for that trip to Kiawah Island? Mr. LEWIS. I think it was. Mr. MACDONALD. No, it goes into a common pool of the corporation and gets spread over all the business, but the Government does pay most of it. Mr. DINGELL. So it is then charged, 94 percent is charged to the Federal Government? Mr. MACDONALD. Whatever it is. Mr. DINGELL. Now I have looked at the particular voucher here that was submitted, and it says "Fursten, boarding at Silver Maple Farm, $87.25." Who is Fursten? The voucher says "Fursten, boarding at Silver Maple Farm, $87.25," dated 5/14. Mr. MacDonald, can you tell me who is Fursten? Mr. MACDONALD. I don't even understand what that means. I know Mr. Lovelace. [Testimony resumes on p. 215.] [The following documents were submitted:] 1. Trip purpose(s) are to be recorded on the reverse side of this form. 2. Advances are to be settled every two weeks or at the end of each trip, whichever occurs first. 3. Attach receipts for all expenses, paid by company or employee. 4. Attach all unused transportation tickets. 5. Car mileage, car rentals, taxis, parking, tolls, hospitality, telephone, telegraph and gratuities should be listed in the OTHER column with an explanation on the reverse side. 6. Transportation codes ATP-airline credit card, BP.company bought ticket, H-Hertz, A-Avis Company rental cars. 7. Cash payment codes CA (Air), CR (rail). 8. Cash advance location Fill in with appropriate Division/Subsidiary location, • Do not include cost of company provided transportation, 928.30 130.29 151.83 855.73 234.55 2300.70 APPROVALS |