Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-08-09
War Industries Board
States Policy AS to
Purchase of War
Materials
ALLIES MUST MAKE
POLICY RECIPROCAL
Prices to Public Must Be Same
as to Government-Bidding
Up Has Increased Greatly the
Cost to Public of Articles in
Which War Materials Enter.

W iASAt w IA oSS1 Ao2o LltCl
Washington, Aug. 8.-Defnite assur-
ance that the American public will be
protected against profteering and that
the allied governments will get their
war supplies at the same price as the
United States is contained in an an
nouncement of the administration S
war price policy. The pronouncement
was made by the new War Industries
Board. formed last week as a part Of
the council Of national defense to have
full charge Of the governments war
purchases. It made clear the admins
tration's determination that there shall
be no exorbitant war profits, and at the
same time stated the governments in
tention to see that industry receives
fair prices for its products.
Prices Out of Proportion
Prices now charged for materials ne
cessary to the industrial life Of the ma
ton are out Of all proportion, the
statement said, to the cost of produc-
ton. "Uncorscionable profits" it is de-
c!ared. are made on national resources
entering the manufacture of articles
consumed by the public.
Already the administra ton is pre-
pairing for drastic action to reduce
prices If negotiations with manufac-
turers fail to produce results.
Robert S. Lovett Of the war board,
who made public the statement. de-
clarec the government was ready for
such a contingency and felt confident
It could meet the situation. If posi-
bic, he said. it hoped to accomplish re-
suits without resort to legislation.
The Pomerene Bill
In the Senate today, Senator Pomer-
enc introduced a bill to authorize the
President to fix the prices of iron ore,
iron, steel and their products and to
regulate their production and sale
through the federal trade commission.
Full power to control the sale and dis
tributon of foods, feeds and fuels was
given TO the government today in the
final passage of the food control bill.
The administrators attitude in de-
manding that American manufactur-
ers sell to the allies at the same prices
as TO this government is that since
there is a common cause and since the
allies are buying their supplies With
American money. justice requires that
costs he equaNzed.
two restrictions. however, will be
enforced in selling to the allies. One
Is that the allies themselves must APP
ply the same rule in selling to each
other and to the United States and the
other is that the arrangement must be
limited TO articles actually used for
war purposes. Officials hold that the
last restriction is necessary as q pro-
lection to American industry and IN
tend that re raw materials shall be
sold abroad at low prices to be made
up into manufactured goods and sold
tt!on with American dealers
The Boards Statement
The boards statements reads:
1t is the purpose of the war indus
tries board to carry out the policy
recently announced by the President
and With which the members OF the
'card are in complete accord. that IN
tho r1l~rhaee of yra,. materials in this
country. our allies shall be charged
NJ more than our own government
has to pay. Guns and ammunition
employed against our enemy are for
6lr benefit as much when used by our
F...e5 as when used by our own men;
SH9 il i9 obviously unjust to require
our allies when fighting our battle to
pay our own people more than our
government pays for the materials nee
cHSarr to carry on the war.
4 mere statement Of the PROPOSE
ION seems enough: and we are con-
a6en. our manufactures who have so
o7frioticallv responded thus far to the
'2''s OF our government in this emer-
reHc,' will readily accept this policy.
Must Be Reciprocal
But this policy has two important
limitations. First it is to be recipro-
2al The Allies must henceforth ap-
ny the same principle in dealing with
their own producers and in selling to
aa and in setting to each other Sec
md: The ARA ngernent must be limit
- 70 var materials. in order to pro-
'ect our oHn industry. We must not
Allow our raw r1atecials sold by our