rent a room and did not have to do it, and was not doing it for but, rather, from a patriotic impulse, would rather stay out of not offer it. You can understand how that might be the cast not putting that down as a definite statement, but that is th sion that we have got from our experience in endeavoring people to offer their rooms.

Senator DILLINGHAM. Is it your opinion, Mr. Baldw Government will have to make some further provisions f

Mr. BALDWIN. It is; yes. And the bill that is now House, that takes in Washington, with that addition the made-although it was taken out at one time-will mak to provide that; and, in fact, I don't know but what as a definite amount is provided for Washington, and the a great deal toward doing away with the pressure for modations and restore the former conditions, I think

STATEMENT OF MR. D. R. MIDYETTE, PRESIDE
HOTEL CORPORATION.

Senator HOLLIS. Where do you live?
Mr. MIDYETTE. In Richmond, Va.

Senator HOLLIS. And you are the president of
Corporation?

Mr. MIDYETTE. Yes; I am president of the poration.

Senator HOLLIS. We will be glad to hear whi Mr. MIDYETTE. I thank you. I suppose tha erally have given you a good many reasons wh ing. I will try to make my statement as briet particularly to the Powhatan Hotel, because uated. We took the hotel over in 1913 at a re small hotel and had not been a success, and u have made an operating profit of a little les for three years and two months.

When we took over the property we tried tensively, and we spent over $20,000 the fir Then we decided to give extra service, and in to come to the hotel, and we gave what we service for a low rate, and in that way di there, and we succeeded in building up But we were out of the hotel zone at that changed and we are no longer out of in

If we were to go back to the rates th we were making no profit, with the have been heaped upon us, largely the increased on account of the Government not get along at all. I have just brieff showing the reasons why I think that from this proposed legislation.

Senator HOLLIS. Before you go on wit hotel man?

Mr. MIDYETTE. No. Mr. Owen is the he is here. I am in close touch with the 1.

These are the prices to-day that you will have to pay in case you wish to purchase any of these items.

Thanking you kindly for past favors, we remain,
Yours, very truly,

O'NEILL & Co., By P. A. DENISON.

Our pay roll since March 1, 1917, has increased 77 per cent, as I have stated, and this does not include dining-room service. When it comes to our dining room, we have always lost money on that part of the hotel and we expect to do so in order to keep up our room service and satisfy our roomers. Any hotel man will tell you that. While it looks to us when we are guests and obliged to pay $1.25 for a steak as if the hotel was making money on such prices, yet if we look at it from the other side we will find that it costs $1.35 to serve that same steak.

Looking at these increased prices for everything you will see it is manifestly out of all proportion to talk about an increase of 10 per cent over the prices of 1916. Our hotel was losing money in 1916 because we were out of the recognized hotel zone and were giving exceedingly low rates to induce people to try our service and build up a clientele.

We have compared our rates with hotels giving similar service in other cities and find that in most cases our rates are lower than theirs. I compared rates with the Jefferson Hotel in Richmond before leaving that city yesterday and find out that our prices are almost identical, notwithstanding that they use negro help, which is cheaper and inferior to white help, such as we use. A friend of mine, the manager of a hotel in New York, told me a few weeks ago that his room average is 25 per cent greater than ours, although the hotel is about the same class. I was in his hotel; went through it. It is the Chatham Hotel, a comparatively new hotel near the Grand Central Station, with probably 300 rooms.

I have a telegram here from the Hotel Belvidere, which is now rented by a Virginia man.

Senator HOLLIS. You mean the Hotel Belvidere in Baltimore?

Mr. MIDYETTE. Yes, sir. He says, "We have been obliged to raise our rates on account of increased cost of supplies and labor this past year.'

These increased costs apply to everything connected with the hotel business. We are paying clerks, for instance, instead of $40 a month as formerly, as much as $80 a month, because they can get $90 or $100 a month if they go to work for the Government, and we have simply got to have them. We used to pay telephone girls $20 a month and we now have to pay them $45 a month and give them their meals. Every item of expense in connection with the hotel has increased enormously, and more so perhaps in Washington than elsewhere, for the reason that the competition here for all kinds of labor with us is greater.

Senator DILLINGHAM. As a matter of curiosity, I would like to know how this increase has affected the demand for tips?

Mr. MIDYETTE. I don't know, sir; I could not answer that question because I do not receive any tips. As a rule, I believe the higher salaries we pay to our employees the more tips they demand. It is hard to satisfy that class of people. By way of illustration, only a few weeks ago the waiters demanded of the hotel men here an increase of 33 per cent in wages and one day off a week and wholesome food and a dining room.

Senator SHERMAN. Was that wholesome food for the guests or the waiters?

Mr. MIDYETTE. For the waiters.

Senator SHERMAN. I wish they would give it to some of the guests. Mr. MIDYETTE. They put that in their contract and now they complain that their food is not as good as the food given to some of the guests.

Senator HOLLIS. I think we all understand somewhat the situation in regard to the Powhatan. You say that on March 1, 1916, you were making low rates in order to secure a clientele ?

Mr. MIDYETTE. Yes; up to that time

Senator HOLLIS. And then about a year ago you started the new part of the hotel?

Mr. MIDYETTE. Yes.

Senator HOLLIS. And started perhaps on a new basis?

Mr. MIDYETTE. Yes, sir.

Senator HOLLIS. Take one of your ordinary rooms with bath for one person, what would you say was the average price of such a room on March 1, 1916? What would an average price be for such a

room?

Mr. MIDYETTE. I asked the auditor this morning to give me that information. He said that the increase had been 27 per cent. That is the increase over last year.

Senator HOLLIS. I am asking about 1916, two years ago.

I was going to ask for the comparison with two years ago and then the comparison with one year ago.

Mr. MIDYETTE. I do not recall those figures, but I think Mr. Owen

can give them to you.

Senator HOLLIS. Then I will ask Mr. Owen.

Mr. MIDYETTE. I should correct that. The 27 per cent increase was from 1916 up to the present time.

Mr. OWEN. Yes; that is correct.

Senator HOLLIS. That is the increase in price since 1916?

Mr. MIDYETTE. Yes, sir; and the expenses have increased 100 per cent. Mr. Owen and I have discussed the matter from time to time and we have always agreed that we would not increase the rates any more than to cover the increased cost; it has been our aim to fix a fair rate at which we could make some money if we could keep our house full, and not increase that rate. Time and time again people come and say that it is not a question of price; that they will pay any price for a room. But we do not charge such a man any more than the fixed rate, and we will not give him a room any quicker than the other man, because it is first come first served at the rate that we have established. That rate is not any more than the former fixed rate

with a part of the increased cost added. We have not increased our rates in proportion to the increase in expenses. In other words, I feel perfectly sure that if you go over our books--and I keep a pretty close tab-I get a little slip like this [indicating] every morning-as to how many guests and so on. You will see that our rates have not increased as much as the actual service has cost us to take care of those rooms.

Senator HOLLIS. I have investigated this a little, Mr. Midyette. While it is true that some items have increased largely; for instance, fuel has more than doubled over a year ago, and other items you have mentioned have largely increased in cost, my present opinion is that taking all the items together it only costs about 30 per cent more to run a hotel in Washington to-day than it did a year ago, and that is taking it all through. Now, what do you think about that?

Mr. MIDYETTE. I should think it would be more than 30 per cent, when we consider that we have had an increase of 77 per cent in the cost of labor. You see, we have to have almost as much help in a hotel as we have guests, about as many employees as there are guests. Senator HOLLIS. Of course it depends a good deal on the hotel. Mr. MIDYETTE. Of course, I mean if you give first-class service, which we aim to do. The cost of labor is the biggest item, and as I have said that has increased 77 per cent.

Senator HOLLIS. During the last year or compared with two years ago?

Mr. MIDYETTE. Well, more than that if we take it two years ago. I could not compare 1916 with the present time.

Senator HOLLIS. You were not running on the same basis then? Mr. MIDYETTE. No; we had a different kind of a hotel then. But the increase from March, 1917, to March, 1918, is what I am referring to, and that comparison is really against us for this reason, that inauguration times we always have extra watchmen and things of that kind, and that was all included in the figures for 1917. So if there is any unfairness in the comparison it would be against us. There is hardly anything that enters into the room service, taking the labor, which is the largest item, and putting it down at 77 per cent increase, that has not increased enormously. Take towels and bedspreads and linen and laundry and soap and pillowcases and things of that kind, they have all increased 70 or 80 per cent in cost. Of course, on the other hand, if you offset your investment against that it might not be more than 30 or 40 per cent; but if you take the increased cost of everything, I should say that the increase would be at least between 30 and 40 per cent.

STATEMENT OF MR. E. C. OWEN, MANAGER OF THE POWHATAN HOTEL.

Mr. OWEN. Mr. Chairman and gentlemen, I do not know that I can add anything to what has been said in defense of the Powhatan, except from personal observation as regarding the question which has been brought about by the bill. If you care to ask me any questions I would be glad to endeavor to answer them.

Senator HOLLIS. I would like to ask you specifically about the price of rooms, how much they have advanced. Take one of your