The Washington times., 1920-09-18
BOOST IN
PLAZA HOTEL RATE
Revolt" Against Increase Does
Not Represent Opinion of
Majority, Says Official.

The "revolt" against the increased
rates at the Government hotels does
not represent opinions the majority
OF the Federal workers who are
guests in the dormitories, in the opin-
ion of Mrs. Sarah e. Summer, the new
superintendent and other officials.
No formal protest against the ad-
vance from $40 a month to $50.50 has
been made, 1t was stated, and none is
anticipated, inasmuch as the condi-
tions which have caused the jump are
well understood by the guests and il
Is recognized that the creation of a
deficit would have Injurious effects on
the future OF the dormitories.
Before the increase goes into effect
all the guests will have opportunity
to study the situation which have
| converted a budget which formerly
enabled the hotels to be self-sustain-
ing into a deficit which threatened to
reach as high as 100000 a year.
Robert Watson, president of the
United States Housing Corporation,
has issued the following statement to
| the guests:
1T has been a source of satisfac-
| tion that during the fiscal year from
June, 1919, to June 80, 1920, 1t was
| possible to make the s45 q month paid
by the guests of the Government
Hotels cover all expenditures with a
| small margin of safety. 1t is with
great regret that the United States
Housing Corporation now finds itself
confronted with conditions which
make it impossible to produce the
same service for the same money.
"ITndpr the nniniynnm act
passed by Congress. the Minimum
Wage Board of the District OF Co
lumbia has set S71 so a month as the
minimum for Mattresses and house
maids. This has emant that the pay
roll in July, including scaling and
substitutes, was Increased over the
monthly rate last year by nearly
$1,000, or some $4,000 a year. Last
year a large list OF provisions coul
be bought under the contracts made
by the general supply committee for
all Government departments. This
year. owing to uncertainties in the
market, many articles are not on
contract and bills for provisions in
July exceeded June bills by over
81, ZOO. Other supplies, including
coal, have increased under the sched-
ule or must be purchased in the open
market.
at is estimated that the expenses
for the fiscal year 1920-1g21 will ex-
ceed the receipts at the present rate
by some thing over $4,000 1t Is not
believed that any economies which
might be suggested could modify this
deficit materially unless the standard
Of cervice was very apprecisbly low
cred. Assuming that the continue
tion OF the Government Hotels is con-
tingent upon their solvency IL Is the
aim of the United States Housing
Corporation to make the receipts
equal the expenditures.
The United States Housing Corpora
tion Is, therefore, reluctantly forced
to the conclusion that the only solu-
tion is to increase the rates at the
Government Hotels from S45 a month
TO 5000, beginning with October 4,
1920. IL will be the endeavor OF the
United states Housing Corporation to
maintain the present standard of
service and IL Is hoped that the
guests OF the hotels will feel that,
even at the increased rate. they are
receiving full value considering the
prices for service and supplies which
we all are forced TO pay. " changing
conditions effect reduction in the
cost of operation the United states
Housing Corporation will be glad TO
reconsider tho rates now put in force
at the Government Hotels"