Evening star., 1933-11-30
Guth Appeals to Roosevelt,
Charging N. R. A. Promised
to Delay Ruling.
GEN. JOHNSON ASKED
TO REPAIR DAMAGE
President Declares Company
Agreed to Abide by Decision
on Arbitration.

An appeal to President Roosevelt,
charging unjust treatment, was made by
Charles G. Guth, president Of Loft, Inc,
after National Recovery Administrator
Hugh s. johnson late yesterday had
ordered the concerns five confectionery
and eating shops here to surrender their
Blue Eagles for alleged violation of the
Presidents unemployment agreement.
The controversy centered around the
question Of whether an exception would
be made by the N. r. A. to permit Loft,
Inc, to count tips when computing
minimum wages paid walters and
mattresses.
A petition for an exception was filed
and denied and Guth charges the Blue
Eagle was taken away the next day, be-
fore the concern had chance to COM
ply with the decision.
Asks johnson Statement.
Informed of the order to surrender
the recovery emblem, Guth Immediately
dispatched kilograms to President
Roosevelt and to Gen. johnson protest.
ing against the action and requesting
that Gen. johnson make press state
ment Immediately.
"A great immeaSurable damage was
done when this was Immediately given
to the press" Guth wired johnson.
because the consuming public will
interpret this as an indication that we
are IN bad repute with our Government.
By some tragic mistake the order
was made without giving the slightest
opportunity of carrying out the promise
to conform made in the application.
In other words, We we're spplylng icr
what We regarded as a Just exception
and expressing our willingness to abide
by the decision. The only possible way
Tor you to lessen the unjust blow to
this law-abiding business Is to publicly
state in the morning press that such
action was taken inadvertently and
without knowledge Of our sworn promise
to agree to the decision If it should be
adverse"
A request was made to the President
TO ask Gen. johnson to make such a
statement.
Employs 5000 in All.
Guth said Loft, Inc, employs up
ward of 5000 men and women in its
national chain of shops and has fully
complied with the recovery act and
intends to sign the restaurant code
when 1t is approved.
Regarding the figuring In Of tips.
Guth said:
From time immemorial mattresses
ana walters have received much larger
pay than the average sales women and
men Connected with the retail industry,
by reason Of the fact the public al
ways has paid premium for good
service, and always has been and al
ways will be willing to tip on the basis
OF 10 to 20 per cent for good service"
The order to surrender the Blue
Eagle affects shops at HOT F. street.
3102 Fourteenth street, 800 Seventh
street, 1103 H street and BIS M street.
N. r. A. Gives Version.
In q press release, the Recovery Ad-
m1nistration made public the following
version of the affair:
The management Of the local stores
petitioned October % for an exception
from the Presidents re-employment
agreement to permit it to count tips as
wages. In the petition. Charles G.
Gutn, n., local manager, agreed to
abide by the decision of the administra-
tion, which was adverse to him.
Thereafter. on November %. Guth
submitted another petition for an ex-
ception in which he admitted the mini.
mum wages required under the re-em.
ployment agreement had not been paid
Complaints supported by af1davits
were received from employees Of the r
street store, alleging the mattresses had
been receiving only IAN cents an hour
while the Unemployment agreement
calls Tor 27-cent minimum.