Milford chronicle., 1920-11-05
HOTEL RATES NOT TO
RETURN TO OLD LEVEL
E. M. STATLER, HEAD OF CHAIN OF
HOSTELRIES, WRITES MANAGER {.
S. TATE OF THE DU POINT.

e. NJ. Statler, president of the Ho-
tel Statler Co, Inc, declares hotel
and restaurant prices can never GO
hack to the pre-war price level. Writ
ing to Ernest S. Taite. managed OF the
Hotel du Pont. Mr.. Statler says:
81 think you will agree that the
representative hotel men of the coun-
try owe il to the public to show why
hotel and restaurant prices can new
er 90 back to the pre-war price leVel
You know and l know why, but we
forget that the public has a shorter
memory, and if it ever understood II
has forgotten.
81 wrote brief article for our daily
paper, the Pennsylvania Register IN
the Hotel Pennsylvania, New YORK
and am enclosing a copy. After you
have read it, viii you not pass II on
to your local newspapers?
ain a few days we expect to have
this information in a pamphlet or
leafet. and if you want quantity Tor
distribution. we will be glad to send
them to you.
I'VE should get the real truth of
this situation before the American
public at a time when they should
hear it, as l believe we can forestall
adverse criticism, by frank state
ment and the public will then know
what to expect"
MIR. Statler's article in the Penn
sylvania Register follows:
"The hotel man of the past was not
a business man. Like Topsy. he simp-
ly grew and fiourished. He sold few
rooms, some food and lots of booze
He made a living and sometimes
something besides.
.The hotel man never did much flg-
uring as to where his profits came
from. He didn't have tor at least
he thought he didn't. He was not
much different from hundreds-yes
thousands-of other small business
men of all kinds in those days.
"The real difference. however, is
that for years and years, all over the
country he was establishing in the
public mind a false price for rooms
and food-a price that he never could
have made and continued in business
except, for the profit he made on his
liquor sales.
'In the past many of the smaller
hotels made all and in some cases
more than their total net profit from
their bar. From the smaller up to the
very largest, taken as a whole, prob
ably rs per cent of the money made
in the hotel business came from the
sale of wines and liquors.
"The public is looking for a return.
in time. to pre-war prices in hotels.
the same as in other lines of business. |
r,rrhIfa ha n rie 10 fhaf
unless the public is told why it can
never be.
"The public is fair and reasonable
and just; but the public is also for
getful. The public in a way knows
the loss of revenue and profit the ho-
tells have suffered from prohibition,
but when it sees the reduction in
prices taking place all around it, in
other lines, it is not going to be sat
isfied that the hotel men are playing
fair. unless it knows why.
"The hotel men will never be able
to sell their goods proportionately
lower the same as other lines of bus
mess not affected by the Eighteenth
Amendment
''The public bought rooms and food
in hotels in the past at or below cost
because hotel men were satisfied with |
profits-most of which came from
liquor sales.
There being no more profit from |
this source. rooms and food will have |
to be priced at figure that will en-
able hotel to pay overhead main |
tenance and leave a margin of profit /
sufficiently large to hold the organiza- /
tion together. so that service may be |
rendered to the public during dull as |
well as busy periods
Consequently prices in hotels can
not be reduced like other lines not af- |
fected by the prohibition question"