Evening star., 1932-09-23
FIGHT CONTINUED
ON j. s. CAFETER|AS
BY HOTEL LEADER
Frank BoIand, President of
Association, Appears in
House Probe.
WEIGHS MOVE
. TO REVEAL ACCOUNTS
Inquiry Chief Believes Action
Proper to Disclose Profit and Loss
Sheets to Private Competitors.

Continuing the fight made under the
! auspices Of the United States Chamber
| Of Commerce to drive the restaurants,
| cafeterias and lunch counters out of the
Government departments in Washing
| ton and other Federal buildings
throughout the country as unfair COM
petitors against private business, Frank
| Boland, representing the American Ho-
| tel Association, appeared today before
the special House Committee which is
investigating such charges.
Representative Shannon, Democrat, of
Missouri. chairman of the committee
| thinks legal action is in order to force
the Government restaurateurs to dis
close their profit and loss sheets to pri-
vate competitors.
Other members of the committee in
Guiding Representative Rich, Republi-
can, Pennsylvania, seem to feel the same
way, although those in charge of Wash
lngton cafeteriaS for Government work
ers insist the plan is necessary and does
not cost the taxpayers a thing.
Representatives Of the National Hotel
Association asked to be heard today to
back up the protest of the National
Restaurant Association heard yesterday.
Ordered by Congress.
James A Wetmore, supervising
architect OF the Treasury Department,
today told the committee that the
Treasury Department has no authority
10 put cafeterlaS IN new Federal build
| lngS unless ordered by act of Congress
or an appropriation is provided through
official estimates
He explained there are a number Of
cafeteriaS in Post Office buildings. in
! some Of which space was assigned after
| the building was erected and that in
some cases cafeterias were authorized
by Congress.
Mr.. Wetmore pointed out that these
buildings are not erected for the Treas
ury Department, but for the Post Office
| Department and other Government
agencies and that these agencies specify
what accommodations they desire to
| have provided in these buildings.
The simplest way to prevent installing
cafeterias, he said, is for Congress to
specifically state that the money ap-
propriated Is for buildings and not for
| cafeterias.
| Representative Shannon also is anx-
| louS to find out about the Washington
butter clubs" which he says he un-
derstandS import butter from the coun-
1
workers, including White House en-
ployeS, at reduced rates.
The feeding Of the 800 members Of
President Hoover's Economic Conference
of last month at the Commerce Depart
ment Cafeteria, where the conference
was held, created a storm before the
committee.
Shannon declared himself decidedly
opposed to this action. Col. U. S.
1 fv1 oh ~ -
grounds. and Frank W. Hoover, man.
ager of the Government department res
taurants insisted the time element was
important in feeding the Economic Con-
ference members at lunch. They said
Secretary Chaplin paid the bill of so
cents each.
Shannon suggested legal action in
connection with the reported refusal of
Postmaster Schunk of Minneapolis to
disclose the facts regarding a grocery
store IN the post Office, about which
the State Retail Grocers' Association
inquired.
Representative Shannon protested
that the space occupied by the restau-
rants in Government properties IN
! Washington is worth $500,0O0 annually
Lieut.. Col. U. S. Grant, Sd. in charge
OF public buildings, replied that one
half Of the profits from operation OF
these restaurants and cafeterias is paid
to the Government.
Hart Presents Plea.
The subject was presented to the
committee in a protest for the Ma
tional Restaurant Association bv Ring
gold Hart, who asked the committee
to secure definite data which the
United States Chamber Of Commerce
had been unable to secure from Gov
ernment sources regarding the opera
tion OF these eating places in the Gov
ernment buildings.
Mr.. Hart estimated that they ere
doing 20 per cent of all the restaurant
business in Washington, occupy space
free in Government buildings, do not
pay for light. heat, water or any
license tax; that they serve many per-
sons who are not employed by the
Government; that they serve breakfast
and dinner, as well as lunches He
emphasized that it is important at this
time to have determination made as
to whether this pracice is to be con-
tinued. because with the erection Of
the large new Government buildings
south of Pennsylvania avenue a num-
Der OF good restaurants would be
opened up on the north side of the
Avenue If there is any assurance that
they will not have to encounter unfair
competition from eating places which
enjoy free privileges in the Govern
ment buildings.
Lieut.. Col. U. S. Grant. 3D., engineer
officer in charge of public buildings
and public parks, replying to Hart's
charges, emphasized to the Investi-
eating Committee that the five cafe
terias and four lunch counters under
| immediate supervision of his Office are
not in the category described by Mr..
Hart and are not offering unfair COM
petition to any one.
Cites Economy Act.
Explaining why his office did not
fill out questionnaires regarding the
cafeterias and restaurants on Govern
ments properties, he said the economy
acts of Congress had put a heavy job
on his office with reduced force and
he thought it would be improper to
have Government employees preparing
ests against the Government service
He explained that he had asked for q
hearing before the Shannon Committee
in order to present the facts, and the
Bureau of Efficiency is making a study.
Col. Grant said that he had advised
with the Bureau of Efficiency regard
ing restaurants and cafeterias In Gov
ernment buildings so that the data
could be prepared for the committee.
He said he believed it should be pre-
sented by a Government agency and not
; by a Government agency doing the
} work for an outside association.
Protest against operation Of htho-
! graphic plants In six different Govern
!, ment departments and bureaus, which
: by competition adversely affected pri-