Abstract: Paper towel dispensing and soiled towel stowing equipment includes a receptacle (24) for used towels, a dispenser containing a supply of paper towels and tamping means (44) for compressing used towel material in the receptacle (24). The tamping means 44 is biased into an uppermost position where it urges towel engaging means (47) into engagement with the paper towels. The towel engaging means (47) disengages the towels when the tamping means is depressed by means of a pedal (42) to compress the contents of the receptacle (24). Thus, the availability of the towel material is restricted unless the user depresses the pedal (42) to compress the soiled towels.