The New York herald., 1921-07-25
DRY HOTELS UNABLE
TO CUT ROOM PRICES
Prohibition Costs Big Hos
telries Here Some $15,-
100000 a Year.
FOOD is CHEAPER
But Managers Cannot Make
Good Losses From Bars
and Cellars.
WETTER BANQUETS NOW
Liquors Struggled Into Rooms
Despite Honest Efforts
to Stop 1t.
WETTER BANQUETS NOW

Once more prohibition is blamed by
the cold blooded auditors that check
up hotel receipts and find out where
the big leaks have been.
Due to prohibition, these unsenti-
mental persons say, hotel patrons are
paying about 25 per cent. more for
rooms than otherwise they would have
had to pay. For prohibition Is cost
ing thirty Of the big hotels of New
York alone, it is broadly estimated in
the business. about s15,0OO.000 a year
in profits, not receipts, and this has
to be met in some way.
Last fall the United States Gov
ernment. the New York County Dis
trict Attorney, and the Commissioner
of Markets made such fuss over the
steep food prices Of the big hotels and
restaurants that there was a general
reduction, the Pennsylvania cutting 10
per cent. on more than 200 food items,
and gradually continuing the reduc-
tions; the Waldorf Astoria, the Bit
more. the Astor and other hotels of
this class joining in the movement.
But the loss of $15,000,000 in net
had to be met. There was no other
way to meet it than by maintaining and
in some cases even increasing rates
even when business was rushing In the
case of the Waldorf-Astoria alone pro-
hibition made a difference of $1.500.00
annually, an enormous hole in prosper
ity In an effort to get the hotel point
of view Of the existing situation THE
NEW YORK HERALD obtained from a
special committee of the Executive Com
mittee of the City Hotel Association the
following statement:
Did Not Boost Prices.
Hotels did not increase their rates
for food and rooms the last few years
in keeping with the increase in their
operating costs. as comparison Of
hotel prices with figures of the report
of the United States Department of La
Dor will show. The reason they did not
do so was because they were the re-
ctpients Of an unusual and abnormal
volume of business due to the war. This
unusual and abnormal volume of bus
mess made 1t unnecessary that rates
be increased proportionately with costs.
But the unusual abnormal volume
OF business has disappeared. The profits
from the sale of wines and liquors are
gone. The hotel man in 1921 is paying
practically as much as he paid during
the peak prices of 1920 for such items
as labor, china, glassware, linen. freight,
express and printing. There has been
very little decrease in many items, such
as housekeeping supplies. engineering
supplies and such like charges. In addi-
tion the hotel man in 1921 is paying
more than ever before for taxes, gas,
coal, steam, electric current. music, tele-
phone service and insurance.
These are some of the reasons which
prevent the lowering Of rates at present,
and which may prevent them from being
lowered for some time to come.
"Compar1son OF present menu prices
with those OF a few months ago will
show that hotels have reduced food
prices in keeping with the reduced cost
of food materiala
% lar Us u TeuuCt1On Oh room rates
is concerned, the hotels find themselves
in the same position as the railroads,
which Is that with a passenger and
freight charge of double the pre-war
tariff they are unable to make n profit
owing to the high operating costs and the
decreasing volume of business. Indeed.
the railroads are In a better position
than the hotels, because they did not
have the most profitable department of
I al q
as the hotels suffered when prohibition
came In"
Respecting Dry Law.
Hard hit as they have been by pro-
hfbftion, hotels, of the better class at
least, appear to make an honest effort
TO support enforcement. Inquiry at the
Biltnore aand the Waldorf as to what
methods of enforcement were used by the
hotel staffs. brought an Identical reply
! I'VE do our best to obey the letter of
the law We instruct head walters and
captains to intercept. IL possible. liquor
4 that is being carried Into the dining
rooms. We discourage this private and
J surreptitious drinking in every possible
way. But II cannot be entirely prevented.
Men viii insist on hip pocket tactics.
] Any one knows what banquets have been
since prohibition came In. AS rule
they have been wetter and more notice
ably bacchanelian than was the case In
the wide open days when highballs and
champagne were openly served.
prohibition. however, Is leaving us
less to oversee than we had short
while ago. IL has about killed the sup
per trade, for example. People go home
nowadays after leaving the theatres or
the motion picture houses. IL has dis
couraged the giving of dancing parties.
IL has radically altered the tone or the
nirht life OF the hotels"
Famous old restaurants have gone. and
unInteresting shoe shops and drug stores
have taken their places. Table d'hote
resorts where dinner and laughter and
liquor kept patrons happily ensconced
around the tables until bedtime are now
closing Mt 10 o'clock, and even earlier.
The old crowds have vanished. Diners
reem to regard eating as duty. And IL
used 20 be an experience, not without an
occasional thrill.
One hotel has done away wish its jolly
hunting room. where the boys used to
cot together, and the space has been
ronted TO bourgeosie merchants. Nfrile
chonhouses where banqueters robed
themselves in huge white aprons and
fraternized over juicy beefsteaks are
now admitting women to their tables.
The midnight shows have closed, and the
electric signs lure one only to white
! goods sale, cosmetics, movie show or
tchewins gum