B-135232, MAY 27, 1963

B-135232, MAY 27, 1963

TO MR. PRENTISS C. HALE:

BY LETTER OF APRIL 2, 1962, WE ADVISED THE ORGANIZING COMMITTEE, VIII OLYMPIC WINTER GAMES, SQUAW VALLEY, CALIFORNIA, U.S.A. 1960, INC., THAT IT WAS INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $508,594 REPRESENTING FEDERAL FUNDS ADVANCED FOR CONSTRUCTING A PERMANENT SPORTS ARENA BUT USED BY THE COMMITTEE TO COVER COSTS ASSOCIATED WITH THE CONSTRUCTION OF TWO TEMPORARY PRACTICE ICE RINKS AND A SPEED SKATING OVAL. OUR CONCLUSION WAS BASED UPON THE STATUTORY LANGUAGE INVOLVED AND THE LEGISLATIVE HISTORY UNDERLYING THE STATUTES. A COPY OF OUR LETTER IS ENCLOSED FOR YOUR CONVENIENCE.

ON AUGUST 13, 1963, MR. H. D. THOREAU, EXECUTIVE SECRETARY OF THE COMMITTEE, WROTE TO US EXPLAINING THAT WHILE HE REGRETS THAT A PRECISE DEFINITION OF THE "ICE ARENA" TO BE BUILT BY FEDERAL FUNDS IS NOT TO BE FOUND IN THE STATUTES OR THEIR LEGISLATIVE HISTORY, THE CONSTRUCTION OF THE ENTIRE ARENA COMPLEX WAS TO THE BEST OF THE ORGANIZING COMMITTEE'S KNOWLEDGE IN COMPLETE ACCORD WITH THE PROPOSED PLANS AS PRESENTED TO CONGRESSIONAL REPRESENTATIVES AND INTERESTED FEDERAL AGENCIES AT THE TIME FEDERAL FUNDS WERE AUTHORIZED AND APPROPRIATED. MOREOVER, HE ADDED, THE CONSTRUCTION OF THE ENTIRE ARENA COMPLEX WAS COMMENCED AND COMPLETED WITHOUT DISSENT OR QUESTION AT THE TIME.

QUOTING FROM HIS LETTER:

"THE BEST EVIDENCE OF THIS, WHICH MAY BE OF AID TO YOU, IS TO BE FOUND BY REFERENCE TO PAGE 53 OF THE HEARINGS UNDER THE HEADING "IV RECEIPTS: 3. UNITED STATES APPROPRIATION," FOLLOWED BY THE ENTRY "$3,481,525.' CLEARLY THIS AMOUNT IS THE KEY TO THE PROPOSED EXPENDITURE OF FEDERAL FUNDS. REVIEWING OUR FILES TO DETERMINE THE BASIS FOR THIS FIGURE, WE LOCATED THE ENCLOSED SCHEDULE ENTITLED"REQUESTED FEDERAL ASSISTANCE," WHICH SHOWS UNQUESTIONABLY THAT THE PROJECTED USE OF FEDERAL FUNDS WAS FOR THE CONSTRUCTION OF THE ENTIRE ARENA COMPLEX, INCLUDING THE QUESTIONED RINKS AND REFRIGERATION EQUIPMENT. IT APPEARS FROM OUR FILES THAT THIS SCHEDULE WAS SENT TO ALL OF CALIFORNIA'S CONGRESSIONAL REPRESENTATIVES TO SOLICIT THEIR AID IN OBTAINING THE FEDERAL APPROPRIATION. WE FEEL THAT THIS SHOULD ANSWER THE SEVERAL QUESTIONS RAISED BY YOUR SUGGESTED INTERPRETATION OF THE RECORD OF THE HEARING.

"AS AN EXAMPLE OF THE DIFFICULTIES OF INTERPRETING THE RECORD OF THE HEARING, WE REFER YOU TO THE SCHEDULE ON PAGE 51 ON WHICH YOU RELY FOR THE CONCLUSION THAT THE STATE OF CALIFORNIA WAS TO PAY FOR THE REFRIGERATION AND RINKS. IN FACT, THAT SCHEDULE WAS PREPARED FOR AN ENTIRELY DIFFERENT PURPOSE, TO WIT, TO SHOW THE CONSTRUCTION ACTIVITIES COMMENCED BY THE STATE OF CALIFORNIA ON FEDERAL LANDS. THE POINT IS THAT THE REFRIGERATION AND RINKS HAD TO BE BUILT WHETHER OR NOT FEDERAL FUNDS WERE APPROPRIATED AND, ACCORDINGLY, CONSTRUCTION HAD TO GO FORWARD REGARDLESS OF THE DECISION OF CONGRESS. IF AT THAT DATE CONSTRUCTION OF THE MAIN ARENA BUILDING HAD ALSO BEEN STARTED, IT WOULD ALSO HAVE BEEN SHOWN IN THE SCHEDULE. ON THE BASIS OF YOUR PROPOSED INTERPRETATION OF THIS SCHEDULE, SUCH ENTRY WOULD HAVE PRECLUDED THE SPENDING OF ANY FEDERAL MONEY.

"WE ALSO CALL YOUR ATTENTION TO THE ENTRY ON PAGE 53 UNDER THE HEADING "II COMMISSION EXPENDITURES; (A) C: 3. PHASE III (ARENA) ESTIMATE.' AGAIN IT COULD BE ARGUED, BASED ON THIS ENTRY, THAT THE COST OF THE ENTIRE ARENA WAS TO BE A "COMMISSION EXPENDITURES," I.E., TO BE PAID FOR BY THE STATE OF CALIFORNIA.'

CONCERNING THE FIRST PARAGRAPH OF THE QUOTED PORTION, THERE IS NOTHING IN THE RECORD OF LEGISLATIVE HISTORY TO SUPPORT MR. THOREAU'S INTERPRETATION. AS TO THE SECOND QUOTED PARAGRAPH, THE POINT MADE IS WHOLLY INCONSISTENT WITH THE STATEMENT PRECEDING INSERTION INTO THE RECORD OF THE SCHEDULE IN QUESTION, TO WIT:

"MR. LAIRD. * * *

"AT THIS POINT IN THE RECORD, I WOULD LIKE TO HAVE A DETAILED DESCRIPTION INSERTED OF ALL THE ROADS AND BUILDINGS WHICH ARE GOING TO BE PROVIDED TO THIS PROPERTY AND ON THIS PROPERTY BY THE STATE OF CALIFORNIA. IT CAN BE SUPPLIED FOR THE RECORD.'

THIS STATEMENT WAS MADE IN THE CONTEXT OF THE CALIFORNIA INTERESTS REQUESTING $3.5 MILLION FOR AN "ICE-ARENA" AND THE SCHEDULE SUPPLIED IN RESPONSE TO MR. LAIRD'S WISHES SHOWS REFRIGERATION AND RINKS AS ITEMS TO BE FURNISHED BY THE STATE. FINALLY, AS TO THE LAST PARAGRAPH QUOTED FROM MR. THOREAU'S LETTER, WE FIND NOTHING PERSUASIVE ABOUT THE SUGGESTION PUT FORWARD.

APART FROM THE ABOVE, WE FIND THE MOST GLARING WEAKNESS IN THE POSITION TAKEN IN MR. THOREAU'S LETTER TO BE THAT THERE IS NO ATTEMPT TO EXPLAIN THE OTHER REFERENCES TO THE LEGISLATIVE HISTORY CITED IN OUR LETTER OF APRIL 2, WHICH ARE UNAMBIGUOUS.

WHILE WE DO NOT IMPUTE ANY IMPROPER MOTIVES TO THE ORGANIZING COMMITTEE MEMBERS AND CAN CONCEIVE THAT THAT THERE MAY HAVE BEEN A MISUNDERSTANDING ON THEIR PART, IT IS THE INTENT OF THE CONGRESS THAT IS CONTROLLING. AND FROM THE INFORMATION AND TESTIMONY FURNISHED TO THE INTERESTED COMMITTEES OF THE CONGRESS AND IN LIGHT OF THE STATUTORY LANGUAGE EMPLOYED, WE MUST CONCLUDE THAT THE INTENTION OF THE CONGRESS WAS TO LIMIT USE OF THE FEDERAL FUNDS IN QUESTION TO COVER THE COST OF THE ARENA ONLY APART FROM THE OTHER FACILITIES INVOLVED. NOR IS THE FACT THAT NO QUESTION WAS RAISED DURING CONSTRUCTION SIGNIFICANT, SINCE IT WAS THE ORGANIZING COMMITTEE'S RESPONSIBILITY TO REQUEST ONLY THOSE FUNDS NECESSARY AND REASONABLE FOR CONSTRUCTION OF THE ARENA AS UNDERSTOOD BY THE CONGRESS.

ACCORDINGLY, WE HAVE NO ALTERNATIVE BUT TO SUSTAIN OUR PRIOR CONCLUSION THAT THE ORGANIZING COMMITTEE, VIII OLYMPIC WINTER GAMES, SQUAW VALLEY, CALIFORNIA, U.S.A. 1960, INC., IS INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $508,594. WE UNDERSTAND THAT AS OF MARCH 31, 1963, THE COMMITTEE HAD ASSETS CONSISTING SOLELY OF A BANK ACCOUNT BALANCE OF $3,619.72. PAYMENT OF ANY PART OF THE INDEBTEDNESS STATED SHOULD BE MADE BY CHECK DRAWN PAYABLE TO THE U.S. GENERAL ACCOUNTING OFFICE AND FORWARDED TO THE FOLLOWING ADDRESS:

U.S. GENERAL ACCOUNTING OFFICE

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