The sun., 1917-08-18
CAN'TFIXPRICES
SAYSWAR BOARD
Finds Power Of Regulation for
Public and Allies Out
side Its Scope.
ssecsa, Desposch to rss suS


WASHINGTON, Aug. 17.-Neither regu-
lation Of prices for the general public
nor for the Allies comes within tho
present scope Of the work and authority
Of the War Industries Board. in the
opinion Of members Of that organisa-
ton. it Was learned on the highest au-
thority to-day.
The board has been created as an or
ganization for the prosecution Of the
war. Its members feel that the success
full accomplishment Of that work will
exhaust their entire energies and that
matters which do not directly bear on
the expansion Of the nations production
to the point where It will successfully
sustain the demands made by Govern
ment agencies are matters which must
be left in other hands than theirs.
Briefly summarized the view OF the
members Of tho board as to the work
which they have undertaken 10:
Price regulation for the general
public Is outside the boards province.
Purchases for the Allies constitute
problem which will probably be
solved through the creation OF another
agency.
Price regulation, 50 far AZ II applies
to Government. purchases, must be
nxed with other matters in mind than
production costs.
Character OF Regulation.
Opinion among the members of the
board strongly leans to the view that
the prices which the public will have
to nav during the war will be regulated
in part by public knowledge Of costs
of production and in part by lessened
demand.
Whether the information gained by
the Government as result OF the In.
ouiry Of the Federal Trade Commission
will be made public cannot yet be fore
cast, but there are strong intimationi
that something of the sort will be done
The public will then be expected to edu-
cate itself sufficiently to be able to
Judge Of the reasonableness Of prevailing
prices
Purchases for the Allies constitute
one of the most difficult problems be-
fore the board. All such purchases are
being held In abeyance as much as pos
.ible until some method for dealing
with them has been worked out. 1t ID
probable that this will take the form
of an Allies purchasing committee
which will place its requirements be.
fore the War Industries Board for con.
sideration in the same way that the
War and Navy departments are doinG
at the present time. Negotiations for
now under way.
Broad View Favored.
Prices to be paid for Government or.
ders will be fixed on a basis which will
insure not only reasonable proht tc
producers but will also stimulate the In.
dustry to 100 per cent. production, and
in some cases provide for large expan-
sion. It can be announced emphatically
that the board as It is at present con-
stituted is in favor OF taking a very
broad view OF the price question. with
ter how important they may be, are q
secondary matter compared to winning
the war as soon as possible.
1t must be RENE embered, however tina
the War Industries Board Is merely ar
advisory body. 1t cannot spend one
penny OF public money by It's own action
Whether Its recommendation will be &C
cepted by the heads OF departments OF
! whom the actual responsibility for ex
penditures rests is another question.
The board Is In the strong position
| of having been created by the action o
| the Council Of National Defence, whicl
| is composed of members Of the Cabinet
and being assigned by them TO thL
work. Refusal to accept recommenda
tions therefore will place the depart
ment heads in the position OF upsettini
the efforts of part Of their organization