The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1917-08-10
PROTECTION FOR PUBLIC
AGAINST PROFITEERING AS
SURED BY WAR DEPARTMENT

be protected against pioneering anu
that the allied governments will get
their war supplies at the same prices
as the United States, is contained in
an announcement tonight of the adj
,ministration's price policy. The pro-
nouncement was made by the new
War Industries Board, formed last
week as part of the Council of Ma
tional Defense, to have full charge of
the Governments war purchases. 1t
made clear the administrations deter
mination there shall be no eXorbltant
war profits, and stated the govern
ment's intention to see that industry
receives fair prices.
Prices now charged for materials
necessary to the industrial life Of the
nation are out Of proportion, the
statement said, to cost of production.
"Unconscionabl profits" it is de-
clared, are made on national resourc-
es entering into manufacture of arti-
cles consumed by the public. The adj
minstration is preparing for drastic
action to reduce prices, if negotia-
tions with manufacturers fail. Rob-
ert S. Lovett of the War Board, who
made public the statement, said he
felt the government could meet the
situation and hoped to avoid legisla-
ton.
Senator Homer today introduced a
bill to authorize the President to fix
prices of iron ore, iron, steel and their
products and to regulate production
and sale through the Federal Trade
Commission. Full power to control
sale and distribution Of foods, feeds
and fuel was given to the government
today in the final passage Of the food
control bill.
Two Restrictions Made.
Two restrictions will be enforced in
selling to the allies, the allies them
selves must apply the same rule in
selling to each other and to the Unit
ed States and the arrangements must
be limited to articles actually used for
war purposes, so no raw materials
at low prices will be manufactured
an dsold back into the United States
in competition with American deal
ers.
The Boards statement reads:
at is the purpose Of the War In
dustries Board to carry out the policy
recently announced by the President
and with which the members of the
board are in complete accord, that in
the purchase Of war materials in this
country, our allies shall be charged
no more than our own government
has to pay. Guns and ammunition
employed against our enemy are for
our benefit as much when used by our
allies as when used by our own men,
and it is obviously unjust to require
our allies when fighting our battle TO
pay our own people more than our
own government pays for the mater
ials necessary TO carry on the war,
"A mere statement of the PROPOSE.
tons seems enough; and we are con
fdent that our manufacturers, WHIT
have so periodically responded thus
far to the calls Of our government ir
this emergency, Will readily accep
this policy,
Two Important Limitations.
"But this policy has two important
limitations. First: 1t is to be recip.
rocal. The allies must henceforth ap'
ply the same principle in dealing with
their own producers and in selling Il
US and in selling to each other. Sec
ond: The arrangement must be limit
ed to war materials, in order to pro
tect our own industry. We must no
allow raw materials sold by our gov
eminent and its allies for war purpos
es to be diverted to industry and trade
abroad which may come in competi
ton with our own manufacturers anC
producers. Measures will be takel
by the board for the best possible as
surance that materials sold at con
cession in prices for war purposes
shall be applied only to war purposes
an fixing the prices to be paid b!
the governments, we shall allow a rea
sonable profit, but shall deny the OK
tortion now eXacted for many commo
dities of prime necessity. We shall
pay the just price so admirably de
fined by the President in his publi
Statement of July II, as follows:
Just Price, Presidents View
"'By a Just price l mean a prize
which will sustain the industries con
cerned in the high state of efficiency
provide a living for those who con
duct them, enable them to pay gooC
wages and make possible expansions
Of their enterprises which will from
time to time become necessary as thu
stupendous undertakings of the grea
war Develops
"The War Industries Board has no
yet had and may not have occasion tt
deal with the question Of prices to b.
charged the public, but it seems prop
err in this connection to direct atten
ton again to the following from The
statement of the President on tha
subject:
owe must make the prices to The
public the same as the prices to tht
government. Prices mean the sans
thing everywhere now; they mean thC
efficiency of the nation whether it il
the government that pays them o.
not. They mean victory or defeat.
Heavy Draft on Materials.
"The war makes enormous drafts
upon many raw materials absolutely
necessary to the industrial life of the
nation and to the ordinary existence
of the people. This has resulted il
the bidding up of prices for what is
r