If you ever get a chance to talk to him, post the conversation.
(Maybe he gets the toilet paper from the ones the kids leave lying around? It could be like a cycle)
I feel that we should offer the homeless more help on a larger-scale as well, but it seems that often times when it actually happens it doesn't end up well.
Take the city of San Francisco for instance, they have social programs that provide shelter and I believe also cash payments to the homeless. They spend a lot of money (in the range of 200 million) a year on the homeless population of the city. What's the result? Due to the programs and the mild climate, you've got homeless people coming all over the place. In certain areas there are multiple homeless people on every block or corner. Just walking down the street for a few minutes you're bound to be approached by multiple homeless panhandlers, or encounter ones who are high/drunk, and some of these people are agressive.
The worst part, though, is that many of the homeless there are young people who can obviously get jobs but it seems they don't even attempt. There are a lot of people there who are too lazy to get jobs and are content with the payouts from the city, and whatever they make daily from panhandling.