Evening star., 1947-02-24
Baldwin Favors
Special Agency.
To Operate GS|
Chairman Astounded
At Organizations
Many Projects

Chairman Baldwin Of the Senate
Civil Service Subcommittee investi-
eating the multiple activities OF
Government Services, Inc, said TO-
day it may be the Government
ought to create special agency to
supervise its operation.
His remark came after his group
delved further into GSI's opera
tions and found it handles housing
projects and runs pleasure boat
on the Potomac in addition to cafe
terias.
"This Is the most astounding
organization I have ever seen. 1t
swims, flies and does everything "
Senator Baldwin said.
"It Is a remarkable organization, "
It's general manager, Frank w.
Hoover, responded.
Water Provided to Barracks.
The committee found today that
the District provides free water to
the former SPAR barracks on indie
pendence avenue, now operated as
housing project for student vet
erans by GSI.
The barracks house some $50 per-
sons. Men occupy two of its three
halls and women the other one.
They pay $18 a month for rooms
and linen.
George D. Riley the subcommit-
tees chief Investigator, asked Col.
Kenneth Madsen, Assistant District
Engineer Commissioner, If the fact
the District gives free water to GSI
means that the District thinks 1t Is
a Government agency.
Col. Madsen said that it did.
Questioned on Opinions.
Mr.. Riley then asked whether
opinions of the corporation counsel,
the District auditor and the con-
troller general, that it is private
concern were taken into account
when the water arrangements were
made.
Col. Madsen said he didn't recall,
but that the District had acted only
as a middleman in asking GSI to
operate the barracks for housing.
Chairman Baldwin's remark came
after he learned the corporation
not sonly operates the barracks but
also a general housing project at
Fort Washington in Prince Georges
County and the Washington Tour
ist Camp in East Potomac Park.
He said he wondered If the corpo-
rations District charter permitted 1t
to operate outside the District, eSpe-
cially as far away as Yosemite Park
in California, where 1t is now tax
ing oSer certain concessions.
In addition to housing projects,
GSI operates the Potomac Clipper,
q sightseeing boat formerly named
the sEmrna F. Kane, and other rec
reatIonal facilities, the committee
learned today.
Says Boat Is Operated at Loss.
The subcommittee accountant,
w. E. Posey, said the boat is oper-
ated at big loss. 1t spends 1888
in operating costs for every dollar
1t gets back in fares, he said.
Mr.. Hoover and Charles S. Peters.
vice president of the corporation,
said they operated the boat because
they had been asked to do so by
the National Park Service. They
added that all the activities Of GSI
were undertaken only at the request
of some Government agency.
Toward the close of the hearing
the subcommittee turned once again
to cafeteria operation. They heard
D. E. McKaye, president, and w. T.
Albrecht, an official of the M. & M.
Restaurants, Inc, of Baltimore, big
industrial cafeteria operators, who
recently took over eating establish
ments at the Naval Gun Factory,
in an effort to compare their costs
and prices with those of GSI. The
M. g. M. Co. representatives said
they pay the sponsors of the gun
factory cafeterias only 2 per cent OF
gross receipts in lieu of rent, get
only their heat and steam free and
charge from IS to so cents for spe-
cial plates consisting of meat, two
vegetables and bread and butter.
The subcommittee will resume
hearings on GSI Wednesday morn