New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-30
Defence Council Members
Complain to Senators OF
Executives Tactics
Quick Remedy Sought
High Officials Advocate CO.
ordination of Purchas-
ing Power
HIM T7e Trlhune Pureaul

from Tne Tribune Pu-esul
Washington, June %. Delays II
awarding essential war contracts or
account Of differences between the ex
ecutive heads Of the government and
the steel and other producers of ra"
materials have developed such an acute
situation that strong representations
looking TO relief were made to-day &c
influential members of the Senate by
members Of the Council Of Nationa
Defence.
The charge was made that certain
executive heads of the government
we're ignoring the critical necessity OF
securing war supplies while they
haggled over prices. II was further
stated that some of the widely adver'
tised economies effected through the
raw materials committee of the Coun'
ell Of National Defence were not BRING
ing the advantage TO the government
claimed for them. II was said, for ex-
ample, that the government price oil
1929 cents on 100000 pounds OF
conner secured through the raw ma
terials committee of the Council of Ma
tional Defence would not produce net
gain to the people.
The copper producers, it was repre-
sented. have advanced the price OF cop
per to private consumers 70 compen-
safe for this alleged patriotic conces'
sion to the Council Of National De
fence. This, it is said. for example
has advanced the cost Of some goods
nearly 100 per cent.
Settlement Expected Soon
Il was intimatcd in high quarters to.
dav that the question Of steel and
other raw materials for the war pro-
rramme would be settled within Re"
DAVIS. This will mean. it was reported,
first. the coordination Of all the pur-
chasing agencies of the government
with a centralized control in one body
II was further said that President VII
son would participate personally IN inc
deliberations Of the central purchas-
ing organization.
As the situation now stands the gov
orn noent purchasing power in the mat
tor Of steel and other necessary war
staples is being handled by a half
dozen different government nooles
without organization or coordihali1n'
First there are the War and Navy de-
partments, then there are the shipping
Poard. and the raw materials com
mittee. the manufactured materials
committee and the General Munitions
Roard Of the Council of National De-
fence. Among these various purchas-
ing boards there are either dlstlhoI u,
nolicies or no policies at all. Inc
whole question Of purchases. 1t is SAID
is in a most chaotic condition.
The first question before the pro,
posed central purchasing board vii
therefore be that Of q broad govern
mental policy covering all purchases
Thus far the nearest approach to
nolicv has been that of allowing pro
ducers the cost Of production plus IL
per cent profit. This scheme, the cos
plus r profit plan. is said TO be highly
Unsatisfactory in that il is most diff
fcult to devise scheme OF cost &C
counting for both the large and SINAI
raw materials producers.
Price Review Plan
Another scheme of price fixing which
has been used by the Navy Department
and advocated by Chairman Denmal
of the Shipping Board is that of fix
ing what is deemed reasonable pric'
and then arranging for the review o
this price by the Council OF Nationa
Defence or the Federal Trade Commits
sion, with provision for later adjust
ment in the event the price is foun'
ineQuitable.
This scheme. it is alleged, is open q
the same disadvantage that FOLLOWED
the negotiation Of is % cent copper
since the producers in many cases vii
discount the generosity shown the gov
eminent by shifting the burden OF
private industry.
There is a strong movement on foo
TO call first all the important producer
Of war materials 20 Washington for
conference on the war programme
This meeting. il is said. would TAX,
the form Of reading the riot act" ant
imprcssiug upon the various producer
the resolution Of the government 4
prevent abnormal profits during the
war.
With this conference as prelim
mary, IL is said. a purchasing policl
would then be evolved which in sub
stance would be the payment OF tn,
market price 70 the producer. He il
turn would be compelled TO open hi
books 10 the Federal Trade Commits
. sion. which at its leisure could inves
tigate costs and profits. Congress
then, by appropriate legislation. coult
secure the rebate Of all oXtortionat,
profits through taxation.
Materials Needed at Once
This latter plan primarily has III,
advantage OF securing the necessar'
war materials at once. 10 further would
prevent passing the burden of inequi
table contracts from one industry e
another until serious disorganization o.
business resulted. Finally. it protect,
the government from extortionat,
prices on war material.
This plan. y is known, has founC
considerable favor among high official,
Of the Council OF Nation al Defence
Moreover. II has been the subject mat
Ter Of discussion among members Of
the Presidents Cabinet and Influential
Senators. IL seems, according to in
eucutial officials, 10 be the most logca
solution Of the impasse which now ex
lists between the government and in
dustry. which is now seriously embar
RAISING the advancement OF the wa
programme.
As one leading Senator put it to-day