New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-09
Text of Statement


The boards statement reads:
1T is the purpose of the War Indus
tries Board to carry out the policy
recently announced by the President,
ard 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 il is
obviously unjust to require our allies
when fighting our battle TO pay our
own people more than our own govern
ment pays for the materials necessary
to carry on the war.
"A mere statement OF the proposition
seems enough, and we are confident
that our manufacturers, who have so
patriotically responded thus far to the
calls of our government in this emer-
gency. will readily accept this policy.
Policy To Be Reciprocal
But this policy has two important
limitations. First, il is to be recipro
cal. The Allies must henceforth apply
the same principle in dealing with their
own producers and in selling to us and
in selling 10 each other.
Second, the arrangement must be
limited to war materials. in order to
protect our own industry. We must
not allow raw materials sold by our
producers at prices patriotically con-
ceded to our government and its allies
for war purposes to be diverted to in
dustry and trade abroad which may
come in competition with our own man
ufacturers and producers. Measures
will be taken by the board for the best
possible assurance that materials sold
at a concession in prices for war pur-
poses shall be applied only to war pur-
poses.
"In fixing the prices TO be paid by
the governments we shall allow a reas-
enable profit, but shall deny the eXtor-
ton now exacted for many commodi-
ties Of prime necessity.
1--WE shall pay the just price so ad
mirably defined by the President in
his public statement of July u as
follows:
"'By a just price mean price
which will sustain the industries con-
cerned in a high state of efficiency,
provide living for those who conduct
them, enable them TO pay good wages
and make possible expansion of their
enterprises which will from time to
time become necessary as the stupen-
dous undertakings of this great war
develop.
Prices to Public
The war industries board has not
yet had and may not have occasion to
deal with the question of prices to be
charged the public, but il seems proper
in this connection TO direct attention
again 10 the following from the state
ment of the President on that subjest:
"'We must make the prices TO the
public the same as the prices TO the
government Prices mean the same
thing everywhere now. They mean the
efficiency of the nation whether il is
the government that pays them or not.
They mean victory or defeat
THE war makes enormous drafts
uron many raw materials absolutely
necessary 10 the industrial life Of the
nation and TO the ordinary existence
Of the people. This has resulted in
the bidding up of prices for what Is
left Of many materials of prime neces-
sity In manufacture TO a point obvi-
ously out of all relation to the cost
of production. and involving uncon-
scionable profits on our national re-
sources, and the consequence Is that
the cost TO the public Of all the arti-
cles in the manufacture Of which such
m naterials enter has reached a level
never before known.
Already the Administration is prepar-
ing for drastic action. TO reduce prices.
il negotiations with manufacturers
fail to produce results. Robert S.
Lovett, Of the War Board. who made
public the statement, declared the
government was ready for such q con:
tingsney, and fslt confident i, could