Norwich bulletin., 1917-08-09
Administrations
 War Price Policy
PUBLIC TO BE PROTECTED
 AGAINST PRoFITEERiNe.
SEVEN NEGATIVE VOTES
Allied Governments Are to Get Their War Supplies at the Same Price as United States-Prices Now Out of All Proportion to Cost of Production, the Administration Finds.

Washington, Aug. s.-Definite assur- ance that the American public will be protected against profiteering and that the allied government will get their war supplies at the same price the United States is contained in an nouncement of the administrations war price policy. The pronouncement was made by the new war industries board, formed last week as a part of the council of defense, to have full change of the governments war pur- chases. It made clear .he administra- tfon's determination that there shall be no eXorbitant war profits, and at the same time stated the governments intention to see that industry receives fair prices for it's products.
 Prices now charged for materials necessary to the industrial life of the nation are out of all proportion the statement said, to the cost of produc- tion. "Unconscionable profits,' it is declared, are made on national re- of articles consumed by the public.
 Preparing for Drastic Action.
 Already the administration is pre- pairing for drastic action to reduce prices if negotiations with manufac- turers fail to produce results.
 Robert $. Lovett of the war board who made public the statement, de- clared the government was ready for such contingency and felt confident it could meet the situation If possi- ble, he said, 1t hoped to accomplish results without resort to legislation.
 In the senate today Senator Pome- rene introduced a bill to authorize the presiden- to fix the prices of iron ora iron, steel and their products, and to regulate their production and sale through the federal trade commis- sion. Full power to control the sale and distribution of foods, feeds and fuel was given to the government to- day in the final passage of the food control bill.
 Costs Must Be EquaIized.
 The administration attitude in de- manding that American manufacturers sell to the allies at the same price as this government is that since there is a common purpose and since the allies are buying their supplies with Ameri- can money, justice requires that costs be capitalized.
 Two restrictions however will be enforced in selling to the allies Ore Is that the allies themselves must~ap- 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 ;ast restriction is necessary as vio- latlon to American industry and in 'end that no raw materials shall be sold abroad at low prices to be made up into manufa ctured goods and sold back into the United States in compe- Lition with American dealers.
 The requirement that the allied gov ernments force their own producers to sell to other governments at the same prices charged at home is to protect thls government and at the same time to establish system to prevent any of the allied nations from profiting at the expense of it's associates
 Believe Manufacturers Win Accept.
 The war board believes that Ameri can manufacturers will accept the suggestion concerning prices to the all lies without the use of force It fSals that the knowledge the government ai- reacy has power or can procure 1t from congress will be sufficient to persuade producers to follow the boards sug- gestions.
 The subject of prices to the public presents harder problem. but admin lstrat1on leaders hold that the reduc- ton Of prices charged the government itself in tend will tend to lower prices generally.