New-York tribune., 1915-10-16
Dominated by British, 1t
Dictates All Allies
Orders.
IDEA IS TO PREVENT
ARMS COMPETITION
Russian Contracts Placed With
out Its Approval a Source
of Trouble.


ton Of the British government.
This sanction is obtained from a
committee sitting in London and hold
ing frequent sessions. Although the
committee has been in operation for
many months, its existence has not
heretofore been generally known out
side of governmental circles. ohiy
once. so far as car be learned-sho
then in the case of Russia-has the
mandate of this body been disregarded'
The personnel of this committee mas
never been published and probably
never will be. It consists. however OF
CONSERVATIVES Of each of the Allied
nations. from Great Britain to Monte
negro: controls absolutely the pur-
chase of all war supplies in Whatever
section of the world they may De
BOUGHT; acts as a financial check and
supervisor over all the war chests OF
ell tho Allies. and seeks 20 eliminate
positively competitive bidding on tne
mart of the Allies for war supplies IN
The few open markets of the world
first of ell, in the United States.
Plan Prevents Competition.
over purchases made in home mar
kets bv the various nations the COM
nittee holds no supervision. It's sphere
is limited strictly TO purchases outside
tho boundary lines of the nations az
var and their colonies. The commit
tee is designated by French TITLE the
English translation of which IS the
International War Supplies Commit
tee
uittee realized early IN lts career
would result in sending prices o. munl-
tions and other supplies 10 proniDltlV,e1
levels and would proportionately s"eii
tho cost of conducting the war. Instead
of coming into the American market
when supplies are needed and Waglng
financial contest for supremacy IN oo-
tanning the supplies, the Alhes nave
adopted a system OF placing one o's
order at time in this country. When
the contract for this order is signed
the next allied nations needs are taken
UP and another contract Is placed. lHiS
system is maintained until al 1he al
lied nations purchasing supplies mere
are cared for.
Great Britain Is Banker.
The committees scope extends 20
the purchase not only of ammunition
and drearms. but 20 all supplies needed
for allied armies in the ield and the
allied navics, which are incapable OF
being supplied in Europe. Gram hour'
clothing, meats, blankets, boots, snoes
/ and the long list of minor articles
l - A. o1fsod oru,toa are en- braceG
/ in the purchases over which Jurlsdlc-
| tion is exercised.
/ Great Britain, as banker for the
/ Allies. dominates this committee. Brit
/ isl. purchases. where convenient, are
made in this country without consult
+ ing the committee. Only in the most
perfunctory way does the committee
keep track of the British supplies
/ bought here. Another department OF
the government attends TO this.
/ One of the chief functions OF the
British members of the committee Is
TO act as a mouthpiece of the British
Treasury in allotting to the other al
lied nations the amounts advanced by
/ Great Britain to them for the purchase
of war supplies in this country. Each
country is financed to a certain eX-
tent-in the case of Russia, almost
wholly-by Great Britain. The Brit
ish members of the committee advise
the representatives of other nations
thereon Just how much Great Britain
will permit them TO spend at stated
intervals; how much they will be per-
mitted to contract for in the United
States, with the British guarantee of
payment, and how the money shall be
spent.
Russia Only Offender.
The only time the committees plan
failed of operation was about six
months ago, and the effects OF the fall
ure have not yet been eradicated. This
was in connection with purchases by
Russia in the United States.
Russia had been notified by the Brit
ish members of the committee that she
might spend a certain sum of money
for war supplies in this country. The
sum was not disclosed yesterday, but II
is believed to have been between $780,
OOO. 900 and S300,O00,000. Whether the
allotent was fully understood by the
Russian government IS not known, but
what Russia did WAS to spend the sum
allotted, and, in addition, make huge
commitments in this country for fur
ther supplies. These commitments
covering many months. were said 70
run into the hundreds of millions Of
dollarsa sum far in excess OF the
amount allotted her by the British gov
ernment.
In making these contracts, apparent
ly, Russia failed TO consult the COM
mittee. When the contracts came due
in part Russia had insufficient funds 70
meet them, and the committee, not hav-
ing authorized the making OF the con-
tracts, had 10 devise quickly some
method of paying the bills. This was
extremely difficult, and the demoraliza-
tion of the foreign exchange markets
in this country recently was attributed
in no small measure 10 this cause.
Russia Benefited by Loan.
Since that time Russia has adhered
strictly 70 the wishes of the commit
tee. Not a dollars worth Of war sup
plies is purchased By her in this coun-
try without the committees approval.
In return, Great Britain Is paying her
bills here. Not only these bills, but
those OF Italy, and, more recently,
France, are being paid to-day By Great
Britain.
( A single financial house P. Nor
gan & Co.-acts as the dlsbursing
agency Of the British government in
this country Its disbursements arc
understood 10 cover payment Of all
goods purchased for the Allies here.
/ Great Britain keeps a record of the
amounts which her allies draw against
I her, and separate transactions between
/ the British government and those Of
the other Allies provide for a settling
/ of the score among the Allies. TIE
$500 900 900 Anglo-French credit loan
just negotiated. it is said. will provide
payment for a large quantity of goods
! purchased here for Russia. The goods
have been, or will be, shipped 70 Rus
STA. but the bill will go to England