Evening star., 1936-05-31
.|CKES AIM TO CUT
WELFARE IS DENIED
Probe ofLunch Room Group
CenterS on Contract
Legality.

In the face of various rumors. Of
ficials said yesterday that Secretary
of the Interior Ickes has no designs
on the strongly-entrenched Welfare
and Recreation Association, which
does a s2,000,000 business annually
in the Government departments and
feeds 10000 employees daily.
Pending the release of a report
made to Ickes nearly month ago
on its far-reaching activities, it was
explained that the investigation"
conducted at the order of the Sec
retary was made primarily with the
intention of establishing doubtful
questions of legality in contracting
with the Welfare Association which
operates some of the largest Federal
cafeterias in Washington. Its latest
cafeteria opening was in the new
Supreme Court Building.
Probe Began Two Years Ago.
Ickes has no thought of absorb
ing any of the duties OF the associa-
ton, it was said, or in taking away
from it the right to operate lunch
rooms and cafeteries in Federal build
ings which come under his control
as head of the National Park Service.
The investigation was started about
two years ago and the first report
was said to be neither satisfactory
to Ickes nor to officers of the as
sociation which is incorporated under
the laws of the District. Since its
organization in 1926, it has been re-
garded as semi-official body, its
officers being Government officials
and its profits being turned over to
the United States Treasury.
Dissatisfied with the first report,
Ickes appointed new committee rep
resenting both the Welfare Associa-
ton and the Government to make a
new study Of the legal problems in
volved. This committee submitted its
report to the Secretary nearly a
month ago and it is said to have his
approval.
Legislation by Congress, it is be-
ieved. is necessary definitely to estab-
lish the legality of the associations
relations with the Government. In
view of the short time remaining be-
fore Congress adjourns, Secretary
IckeS does not intend to press for
legislation until the next session.
McCarl First Questioned Legality.
Controller General McCarl first
questioned the legality of contracts
with the association when Lieut.. Col.
U. S. Grant, Sd, was superintendent
Of public buildings and grounds in
Washington. He then was head of
the Welfare Association also.
McCarl ruled that he could not con-
tract with himself, both as Welfare
Association head and director of pub
lie buildings. Since then, the question
of legality never has definitely been
settled and the supervision of public
buildings and parks in the National
Capital has been turned over by the
President as one of the functions Of
the Interior Department.
The report now before Ickes is said
to cover some 40 different points and
is in the nature, somewhat, of con-
tract designed to meet the situation
in all its ramifications.
1t does not. however, seek the aboli-
ton of the Welfare Association, OFF,
cials said, but is designed rather to
give it clear legal basis.
Outgrowth of World War.
The association was the outgrowth
of World War conditions, when small
cooperative groups Of Federal EN-.
ployes undertook to conduct cafe
terias.
Now it's cafeteria business is only
one important part of its wide ac-
tivities. 1t has contracted for the
cafeteria business in the new Interior
Building now under construction and
conducts the Commerce Department
cafeteria and others in the Post Office
Department, Interior Department, the
Internal Revenue Building, Patent Of
flee, Federal Warehouse and others,
including the pride of all, in the pa
latial Supreme Court Building.
In addition, the Welfare ASsocia-
ton operates all the tennis courts
and swimming pools in United States
parks in the District, the tourist camp
and the golf course in Anacostia
Park among its principal functions.
With prices carefully fixed SO as
to avoid competition or undercut-
ting of private restaurants. the asso-
citation annually deposits about
sl00 900 in profits to the credit of
the Federal Government. Its profits
for the first six months of the fiscal
year were $4,000.