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

Government Services, Inc, this
year will raise the price OF meals
served in its ~ Federal building
cafeterias to ease serious" tlnan-
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 or of a cent
on each of the 100000 meals
served during 1947.
While GSI had a revenue of more
than $10,909, 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 $91,929-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 a dis
proportionate labor cost for the rest
of the year." the official asserted in
Ills dIlIludl IcpOll.
Gen. Grant also traced develop
ments leading to the recent 13-week
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 GSI
early last year by a Senate
Civil Service Subcommittee, headed
by Senator Baldwin, Republican, OF
Connecticut. He made no comment,
however, about legislation being
by the subcommittee to re-
vamp GSI's contractural relations
with the Government.
Defends Services.
Defending GSI's many fine serv-
|ces." Gen. Grant charged:
|. That some Of the subcommittee
questions seemed to "in1pugn the
management and even the integrity
of GSI."
2. That explanations were cut
short and questions which could not
be answered Immediately were
given wide publicity" while SUB
seouent answers were "burled IN
The voluminous records"
3, That criticism sometimes was
built ION misinformation or on the
1imsy foundation of a very minor
Item"
without any doubt, the fact that
GSI was being investigated and
the form which the publicity TOOK
had unfavorable results, both IN
direct loss of income and in gen.
eral public esteem Gen. Grant
asserted.
In another report, r. R. Ayers,
GSI general manager, declared ef-
forts will be spurred this year to
enforce a two-week occupancy limit
at the Washington Tourist Camp
in East Potomac Park. Despite I'M
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 r. F. Gillen was reelected
vice president at an executive ses-
sion of the board aftG the meet
ing. 49,,
One of the boards nine trustees
was reelected to three-year term
and three other corporation mem
bers were named to fill vacancies
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.
aeer, 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, assistant
chief of the bureau of service, In.
terstate Commerce Commission, was
voted a new member of the cor.
poration. He succeeded O. l.
Mohundro, examiner of the 1CC.