Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-08-02
Includes Central Purchasing
Commission of Three-PrO-
gram for Reorganization of
Council of National Defense
Plan Will Stabilize Markets
and Purchasing Will Be Dis
associated from Personal Gain
Senate Finance Committee
Decides to Leave 5-BilliOn
Bond Issue Question to House.

Washington, July 29.-The formation of
q war industries board of seven members,
which will supervise the actual expendi-
ture Of many millions of dollars. and
central purchasing commission. to be COM
posed of three of the members of this
board and Herbert c. Hoover. was an
nounced Saturday as the program Tor the
reorganization of the council of national
defense. which has received the full ap-
prevail Of President Wilson.
Frank A. Scott of Cleveland. the present
chairman Of the general munitions board.
has been selected to head the war in
dustries board, and associated with him
will be Leut.-Col. Palmer E. Pierce.
represent the army: Rear-Admfral
Frank F. Fletcher, representing the navy:
Bernard NJ. Baruch. Robert S. Brookings
of st. Louis; Robert S. Lovett, chairman
of the executive committee of the Union
Pacific system. and Hugh Frayne. chief
organizer Of the American Federation of
Labor in New York.
In the hands of this body of men will
be placed unusual powers. as all pur-
chasee made by the central committee,
on which Mr.. Baruch, Mr.. Brookings. and
Mr.. Lovett will serve. in association with
Mr.. Hoover when the question of food
stuffs is concerned, will be made in ac-
cordance with the general policies which
the war industries board formulates and
approves.
The plan of reorganization does not pro-
vide for the adjustment of the council
Of national defense. its advisory commits
sion. or any of the subsidiary committees.
which will be called upon from time to
time to supply information and cooperate
in any manner suggested.
No definite policy was announced as to
OF ~ fha ipd In OF ri
and its purchasing commission with repre-
sentatives of the allies of America. 1t has
been reported from time to time that Mr..
Baruch or another might appear as the
buyer for the allied nations as we'll as for
the United States, but there Is no such
suggestion in the announcement made. 1t
can be stated that there will be the closest
cooperation with the buying interests of
the allies and that a definite policy will
be reached which will avoid the danger
of competition in American markets
which would tend to boost prices. Such
a course. It Is understood, is already being
followed out in connection with the pur-
chases Of wheat and certain other grains.
1t is the opinion here that the forma.
ton Of the war Industries board will prove
one of the most important steps in the
effort to bring about the sterilization OF
all American markets. 1t will provide also
a definite body with which producers o.
the many wartime commodities ma!
treat, and put an end to whatever con
fusion may have existed because of thu
cumbersome size of the council Of nationa
defense.
BIG BOND ISSUE HELD UP.
After an ali-day conference the Senat
finance committee decided Saturday nigh
not to arrange for the 5000, 100000 add
tional appropriation asked by Secretar,
of the Treasury McAdoo for war expense
for this year.
The committee agreed to increase tn
$l.670. 100000 war revenue bill by $4,000 .OO
so as to yield an aggregate of direct TIA
of s1.94S. OO0.0 900. Whatever money is to b
raised to make up the 5000. 900 beyon
the increase Of $273 100000 put in the wa
revenue bill the finance committee wi
leave to the House to work out
What actuated the finance committee
reject Mr.. McAdoo's request was
reluctance of the majority of the con
'mittee to provide for any appropriate
beyond the actual immediate requirement
of the government. The committee ca
'culated that with the war revenue bi
raised to 81, 943 600, 0O0 an income from IL
sale Of Liberty bonds of $1,000. 1900 an
u,333,5OO,000 to come from normal ia
sources outside Of the war revenue bill
the government would have ample none
to run the war up to December i.
The IS, ZIG 100000 to be derived from IL
three sources indicated. the commits
figured, could not be exhausted befo
Congress met again In December. and.
It became necessary to raise more none
this could be done by Congress.
While the committee adjourned uni
Monday to take a Anal vote on the r
lection of Mr.. McAdoo's scheme. Chat
man Simmons said the committee wi
practically unanimous on, the point. II
vote on Monday, he said. would formal
confirm Saturdays decision.
In his estimate to the finance cor
mittee. Secretary McAdoo put down Il
expense to be involved in running q
war up to June 30, 1919. and ~. 7S5,S07.O '