Evening star., 1922-08-03
i. s. PLAZA HOTELS
GIVEN CLEAN BILL
Labor Department Investiga.
ton Fails to Substantiate
Charges Made.

Management of the government ho-
tells on the Union Station Plaza is
given clean bill of health as the
result of an investigation conducted
by the Women's bureau of the Labor
Department. Assistant Secretary of
Labor Henning announced today.
The investigation, MIR. Henning
added. failed to substantiate any OF
the charges made in petition filed
four weeks ago with Secretary Davis
by the Plaza Council and the report
of the women's bureau recommended
extension of the authority Of the su-
perintendent of halls rather than abo-
lition of the position.
The report of .he women's bureau.
ratified by Hr. Henning today, is be-
lieved to be the final word in dis
cussiOn of management difficulties at
the government hostelries, which has
been kept UP for several months be-
tween the Plaza Council and the hotel
management.
Petition Asked ResignatiOa.
The petition sent to Secretary Da-
eral manager of the hotels and aboli
ton of the post of superintendent of
residence halls of the hotels.
Mr.. Henning's statement, made pub
lie this afternoon. follows: -.
Investigation of the conduct Of the
Department of Labor, through the
woman's bureau, gives a clean bill of
health to the management of the ho-
tells. The investigation was prompted
by petition from the guests of the
hotels calling for the resignation Of
the general manager and the aboli-
tion OF the position of superintendent
of residence halls of the hotels. The
investigation failed to substantiate
any Of the charges made in the petit
ton and the report recommended the
extension Of the authority of the su-
perintendent of halls rather than the
abolition of the place.
Examination Of the accounts of
the hotels. conducted by the bureau
Of efficiency, appears to show that
the business administration of the
hotels is efficient. The average
Increased from s1.16 in 1920 to $2.14
IN 1921, and $345 in 1922. In the
figures used in calculating this profit
however. no consideration was given
to interest on the governments in
vestment, or the depreciation of the
property or even interest on the
present salvage value of the plant, or
the pro rata overhead of the heating
corporation. which would be consid-
cred by any commercial concern.
These charges are marked off as war
emergency expenditures of the gov
ernment and are. therefore, paid by
the federal taxpayers. The investi-
cation disclosed that the manage
ment has changed the restaurant at
the hotels from a liability to an as
set. The restaurant. which showed a
loss of S6.472.96 in July, 1921. earned
a gain of s1,261.S5 in July. 1922.
strong Prejudice Seen.
The investigation has disclosed to
some extent the work of the Plaza
Council, organized among the guests
of the hotels. 1t is difficult to know
the possibilities of the council. Its
criticism and activities have from
the beginning aroused strong pref
udice Apparently it has thus been
a failure. and those who ought to
know best believe it always must be
a failure. 1t seems apparent that a
hotel conducted by the guests at the
expense of the proprietor could not
be made success
The real solution appears to lie in
providing machinery whereby the
needs and desires Of the guests can
be made clear to the management
without the agitation and disturbance
which have been prevalent in the
past. To that end the situation may
be met by extending the duties and
functions of the superintendent of
halls, or having two superintendent
of halls and making them the rep
resentatives of the guests in consul
tations with the management. The
woman's bureau. in an informal
memorandum, outlines a plan for re-
organizing the Plaza Council on en-
tirely different lines. and under a new
name. Perhaps that is the proper
solution.
THE report of the woman's bureau,
as the result of its investigation. is a
valuable document and constitutes a
distinct contribution on the subject
of this enterprise of the government"