Evening star., 1948-06-05
Bill for j. ). Unit
To Replace GSI
Put on Calendar
Senute Committee
Unanimously Boeks
BoIdwin Measure

The Senate Civf1 Service Com.
mittee has indorsed unanimously the
Baldwin bill for q new Government
corporation to take over operation
Of all cafeterias and other facilities
run by Government Services, Inc.
and other private agencies on Fed
eral property.
The measure was sent to the
Senate calendar late yesterday with
q lengthy committee report, criticiz-
ing GsI operation as zone of general
looseness."
The committee said 1t was con-
vinced ut Is time that the whole
issue be brought down to . legal
basis to the end that the Govern
ment will have some real and not
fancied control over operations on
Government property"
The bill and report are the out
growth of long investigation OF GSI
by q subcommittee headed by Sena-
tor Baldwin, Republican, OF Connec-
ticut. The measure may come up
for Senate action Monday.
bO3rQ OF ScVcn DuCCSUiss
The new agency set up by the bill
would be called Government Serv-
ices Corp. 1t would take title to
all Government-ow equipment
now used by GSI or any private
corporation, association or organi-
zation. The new Csc would be
operated by . board of seven di-
rectors, three of whom would be
outside the Government and ap-
pointed by the President, with con-
firmation by the Senate. Employees
would be given civil service status.
The Civil Service Committee said
it found GSI. for some purposes.
considers itself Government cor
poration, though. on the other
hand, on some occasions. it regards
itself as a private corporation"
"GSI has performed necessary
service" continued the committee
report. However, the committee is
Of the conviction that there exists
a sort of ethereal relationship be-
tween the Government and this
District Of Columbia corporation.
"The history of the relationship
between the Government and GSI
is we'll marked by debates and argu-
ments and general misunderstand-
ings with regard to GSIs true status
in the Federal facilities picture,
even to the point of GSI's including
as it's primary word of Identification
the use Of the word Government
Disagreement on Costs.
1.-The basic disagreement between
the Government and GSI gravi-
tates around the contract between
the two parties, by virtue of which
one-half of the profits of the cor
poration in the operation of cafe
terias is to be paid to the Gov
ernment. There has been constant
disagreement throughout the years
as to what items should be deducted
in cost, how much should be
charged for the rental for the use
of Government buildings and how
much for equipment. what consti-
tutes depreciation and what is prop
erly allowable for requirements, and
other related points at issue.
I'm some instances Government
equipment was used and then re-
placed, without record having been
made Of the transaction. All in
all, the operation of Government
Services. Inc, has been one Of gen.
eral looseness."
The committee pointed to the ex-
panding operations of GSI, which
started in the cafeteria business,
but branched out to include op-
Grating Fontana Village for the
Tennessee Valley Authority. with
prospects of concessions at Yosem-
ite National Park and possibilities
Of a hotel plant in the West Indies.