Evening star., 1940-02-14
Ickes Says Bill
Could End Row
On Cafeterias

Won't Admit Law
Is Necessary, However,
Inletter to Elliott
Passage of a simple bill to al
low the administrator of the Fed
eral Works Agency to let space in
public buildings to the Welfare and
Recreational Association for oper-
alton of cafeterias would settle the
controversy over the association,
Secretary of Interior Ickes has ad-
vised Acting Controller Gen. Ell
lott. This letter takes sharp issue
with Mr.. Elliott's recent report criti-
cising association activities.
Concluding lengthy investiga-
ton in January the acting Con-
troller General declared that the
contract between the association
a non-profit corporation-and the
Government was illegal because it
had no statutory grounds; said the
association had made improper ex-
pendltures and recommended that
the cafeteries and other facilities it
directs either be turned over to the
Government for operation or leased
to private concesSionaires.
Mr.. Ickes said he was moved to
intervene in the case because for
seven years prior to the reorganiza-
ton last July his department, then
in charge of public buildings, had
certain responsibilities in connection
with association functions in the
buildings, and still has con-
tractural relationship-approved by
Congress-where the association has
facilities in National Capital Parks.
Stern Foe of Private Operation.
Secretary Ickes was particularly
vigorous in his comment on the
suggestion that private operators
might take over the concessions.
Il wonder if any representations
have been made to you by restau-
rant association which for a number
of years has been endeavoring to
secure contracts in Government
buildings to displace the associa-
tion?" he asked, adding: Such
representations have been made
from time to time to this depart
ment, but have never been adopted"
In another development today
trustees of the association, who are
underofflcials of the Government,
were preparing to hold a meeting to
consider proposal by John M.
Carmody, administrator for F. w. A.,
that the corporation be reorgan-
lied and put directly under the COM
missioner of public buildings and,
while continuing the cafeterias,
turn the rest of the units, recrea-
tional and otherwise, over to Ma
tional Park Service.
Doesn't Mention Legislation.
In the proposed agreement, which
he submitted to the trustees, Mr..
Carmody made no suggestion as to
the need for new legislation which
MIR. Elliott had said would be neces-
sary, and evevn though suggest
ing the simple bill" Mr.. Ickes en-
phasized that he is mot yet ready
to admit that specific statutory au-
thority' is necessary.
The Carmody proposal is UNDER
stood to be Objectionable to the
trustees, comment from one source
being to the effect that their inde-
pendence would disappear.
In his letter to Mr.. Elliott Mr..
1ckes praised the services of the cor
poration, which was formed in 1927,
and said it deserves better treat
ment than it has received at your
hands"
1T is of course not only your pre-
rogative, but apparently, at times,
your practice to make an investiga-
ton, reach your conclusions and
announce them without first con-
sulting the persons affected. 1t is
a habit I deplore," he wrote.
Some Adjustments Made.
He said that several years ago.
when complaints were made regard
ing the association-which divides
its profits with the Government
his Office conducted an investigation
and brought about some adjustments
in the accounting and operating
practices.
At that time, Mr.. Ickes continued
with reference to the contention
that the association contract with
the Government was illegal, it was
felt by some that an implied
authority" existed in the head of
department to make a contract on
matters affecting his Office, but that
nevertheless, efforts were made to
secure legislation to "legalize" the
authority of the National Park Serv-
Ice to let space in Government
buildings. These efforts failed, the
letter says, adding:
Nevertheless, as the corporation
was an entity, had been serving a
large clientele satisfactorily and
there being no other agency to take
over the business, by force of cir
cumstances the operations were al
lowed to continue. These circum-
stances have not changed since then,
nor is the solution any simpler than
1t was several years ago, even if
your policy of killing the patient is
adopted"
Might Prefer to Close.
Mr.. 1ckes said that three conces-
slonalres had operated the Interior
Department cafeteria before the
Wenare and Recreational Associa-
ton took 1t over, and that it was
not until that time that it was con-
ducteo successfully from q financial
and service standpoint. He would
prefer to close the careteria with
the attendant great Inconvenience
to employees rather than submit to
private operation" Mr.. Ickes asserts.
He also disputed the statement in
the Elliott report that Representa-
tive Of the Interior Department had
co-operated in the Investigation
saying that the original assignment
OF a special agent to this work had
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