Evening star., 1948-04-16
.GSI 10 Raise
Meal Prices in
AZ Cafeterias
Must Ease Serious
Financial Setback,
Gen. Grant Declares

Gen. Grunt Declares
Government Services, Inc, this
year will raise the price Of meals
served in its ~ Federal building
cafeterias to ease serious" flnan-
cial setbacks.
This was disclosed last night by
Maj. Gen. U. S. Grant III, presi-
dent of the GSI Board of Trustees,
who told members of the corpora
ton at their annual meeting that
the cafeterias lost OF of a cent
on each of the 100000 meals
served during 1947.
While GSI had a revenue of more
than $1O,909, 900, Gen. Grant said
the cafeterias ended the year with
an operating loss of $162,544. Other
activities reduced the total GS1
deficit, however, to SOL ,929-a $780,
600 improvement over total losses
during 1916.
Situation Can't Go On
The official said he does not know
when the price increases will &c
into effect or how great they will be
But he added:
Certainly this situation cannot
long continue, and GSI cannot long
continue to meet heavy losses from
many of its main divisions"
He blamed the cafeteria losses on
reduced numbers of Federal work.
ers, labor problems and resistance
to increases in meal prices imposed
in January, 1947.
The labor problems grew out OF
a strike early last year, in which
Local All, United Cafeteria Workers
(CIO), backed out of a contract
agreement, Gen. Grant said.
There was reason to believe" he
added, that the action of the local
was instigated by the international
union with which it Is affiliated
Omitted Public Workers of Amer
ica)."
That dispute cost GSI $4,000 di-
rectly and "saddled it with dis
proportionate labor cost for the rest
Of the year." the official asserted In
his annual report.
Gen. Grant also traced develop
ments leading to the recent 13-weeb
strike which began January 5, but
he added that the subsequent
events belong in the report for an.
other year"
The GSI president lashed out
strongly at an investigation of GS]
activities early last year by Senate
Civil Service Subcommittee. headed
by Senator Baldwin, Republican, Of
Connecticut. He made no comment
however, about legislation being
prepared by the subcommittee to re.
vamp GSI's contractural relation!
with the Government.
Defends Services.
Defending GSTs many fine serv
ices" Gen. Grant charged:
l. That some of the subcommittee
questions seemed to "impugn th'
management and even the integrit!
of GSI."
2. That explanations were GU
short and questions which could no
be answered Immediately "wer'
given wide publicity" while sub
seouent answers were buried II
the voluminous records"
8. That criticism sometimes wa!
built ION misinformation or on the
flimsy foundation Of a very minol
item"
without any doubt, the fact tina
GSI was being investigated ant
the form which the publicity took
had unfavorable results, both IL
direct loss of income and in gen
eral public esteem," Gen. Gran
asserted.
In another report, R. r. Ayers
GSI general manager, declared ef
forts will be spurred this year II
enforce two-week occupancy l1ml
at the Washington Tourist CAM
in East Potomac Park. Despite i'm
provements at the camp, it oper
ated last year at a loss, he said
+. Gen. Grant was reelected pres
ident of the Board of Trustees
and F. F. Gillen was reelected
vice president at an executive ses
sion Of the board aftG the meet
ing.
One of the boards nine trustee
was reelected to a three-year tern
and three other corporation mem
bers were named to fill vacancie
on the board. A. j. Williams, sec
retary of the United States Mari
time Commission, was reelected
and the new trustees are r. O
Jennings, assistant buildings man
ager, Public Buildings Administra
ton; Gerald Ryan. chief clerk. Com
merce Department cafeteria, and G
Henderson Sweet, assistant person
mel chief of the Veterans Admins
tration.
Charles L. Harrison, asSistan
chief of the bureau of service, In
terstate Commerce Commission, wa
voted a new member of the cor
poration. He succeeded O. L
Mohundro, examiner of the ICC.