Evening star., 1942-12-01
Head Of Cafeterias
Defends Food Prices
AT u. 5. Buildings
Claims Meals at Cost
Would Sove Customers
Only 10 Cents q Month

The average patron" of Gov
eminent cafeterias would save only
10 cents month If all meals were
served at absolute cost" to the Wei
1are and Recreational Association,
Capt. F. w. Hoover, manager, said
today in response to an announce
ment that the Truman commit
tee was investigating to determine
II Federal workers cannot obtain
better food value for the money
they spend"
The commit statement, issued
Saturday, expressed satisfaction at
the action of the War Department
IN taking supervision over the Pen
tagon Building cafeterias and an
nouncing they would be operated at
cost. The department stepped in
after dispute between the asso-
citation. which operates most of the
cafeterias in Federal buildings. and
Walter P. Mcfarland, a private op-
orator engaged by the Army engi-
neers to handle the Pentagon prof.
ect.
Capt. Hoover also took exception
to the Truman committee state
ment that only ~ cents of the as
sociation's income dollar went for
food. He put the cost at 53.s7.
Hoover Amplifies Views.
The suggestion that the cafe
terias in Federal buildings, includ-
Ing those operated by this associa-
ton, should sell food at cost is
an excellent one from the viewpoint
OF Government employees" he said
However, the question Immediately
arises as to what is meant by the
term cost. If cost means paying
all expenses connected with pro-
curing and serving food but oper-
ating without profit, the association
has been doing practically that.
OF the average dollar spent by
patrons in the cafeterias and lunch
rooms during the latest four month
period for which audited operating
reports are available-June through
September, 1942-5397 cents went
to pay for the cost of food.
''Of the 4603 cents remaining
after the food was paid for, 34.93
cents went for wages, in accordance
with the union contract, and ga
cents were spent for miscellaneous
expenses. such as electricity, gas,
steam. hot water, insurance, paper
and cleaning supplies, replacement
OF silverware and other equipment,
trash removal and so on. This
leaves balance of 166 cents out
Of each dollar, which will be divided
equally. the Government getting
one-half in lieu OF rent for the
space occupied.
Small Proht Claimed.
The l.66 cents of net income
amounted to only o. cent on each
of the 12667.58l meals served dur
ing the four-month period. In other
words. II all meals had been served
at the absolute cost to the asSo-
citation, the average patron would
iioNC ooNcb oiIIy ~ SCIiIS pei Hloiltli,
assuming each patron purchased 25
meals per month.
ST the proposal is only to charge
for the actual cost of the food,
Capt. Hoover said. then it would be
necessary for the Government to
carry overhead that on the basis Of
the associate tons current operations
amounts approximately to $4,000, 900
annually.
All of the so-called profit or
net income shown on the books OF
the association since its incorpora-
ton in 1926" he continued, has
been spent to pay for necessary op-
Grating equipment and to finance
the huge cost of installing the many
new units which have been opened
up, Al the request of the Federal
Government. In fact, the cost of
new installations has been SO heavy
during the last two years that the
association is now confronted with
a sizable deficit. There have been
no dividends or profit distribution
Of any kind and never can be. in
asmuch as the association is nom
profit distributing corporation"