New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-29
Munitions Board
Adjusts Rivalry in
Buying for War
Prevents Army from Cain
ing Advantage Over
Navy in Contracts
Not Regulating Prices
Members Plan to Avoid Any
Action That Might lnjurc
Industries
Not Regulating Prices

Washington, April g. The MUM
tons Board is holding daily sessions
and seeking 20 adjust the rivalry be-
tween the purchasing officers Of the
army and navy and marine corps and
prevent one branch of the military
naval service from gaining an undue
advantage over another, as had oeen
threatened by the tentative contracts
awarded by the War Department.
For the present it has been decided
that the Munitions Board shall not en-
gage ia actual purchase Of either army
or navy supplies, as was originally pro
posed. This has required Secretary
Baker 20 amend the order recently IS
sued. which gave the impression that
the board would assume the functions
Of the purchasing quartermasters.
1t is intended, however, that thr
board shall determine the output o.
factories. In classes of material where
there is shortage contracts Will be
distributed among the producers to the
capacity Of plants and as near to the
needs of the government as may be.
Then the board will find out the rela-
tive necessities of the departments re-
curing the material, with due refer
ence to the contracts which are being
carried for the Allies, the demands Of
which. II is considered, should take
precedence.
Price Regulation Pending
The question Of regulation of price
is still pending before the board. Its
members appreciate the difficulty or
such a problem, especially as it would
be necessary TO extend such regula-
ton 10 the producers of the raw
product and not confne il to the manu-
| facturer. This may require Legislation:
The policy Of the board IS to avoid
, arbitrary action that VIII lnlure the
! industries of the country, and IN any
determination OF fair profit, which has
been suggested as a means or price
regulation, the board finds itself not IN
accord with the plans OF Secretary
! Daniels, who is in favor Of adopting
the lowest obtainable price as the
standard rate. This is regarded as
: unfair and menacing. since so low
rate might be established as would pre-
cipitate business troubles.
The incident of an award of a con-
tract by Mr.. Daniels for steel plates at
30 cents, resulting in saving to the
. Navy Department Of 100000, is cited
by members of the board as an example
OF establishing too low rate for this
material. The board favored paying
3.5 cents, on the principle that TINS
represented a fair return. The COM
mercial price obtainabe in the prevail
ing market is more than eight cents.
The result of Mr.. Daniels's action has
been to drive some of the "lndepend-
emit" steel firms out of the government
field. %,
Animated interviews have been held
in the past few days between members
of the National Council of Defence and
the representatives Of the labor unions,
with the result that the two parties
have come near, on several occasions,
to parting company.
MIR. Gompers has resisted any plan
for establishing an industrial class for
the benefit of the war. He explains
that his constituency arc opposed to 1t.
IL was this influence, II now appears,
that led Secretary Daniels to revoke an
order creating an industrial branch Of
the naval reserves, the idea being to
have enrolled for service in the NUM-
ton plants expert workmen who should
( be exempt from military duty.
/. This is the idea which the munitions
board is working on, in the hope that
( there may be no withdrawal OF COM
petent artisans from the plants en-
gagged in turning out supplies for war
/ use.
Secretary Baker to-day issued an
order that no contracts should be made
! for any material that would provide
profit for any army officer. He has
| discovered that a number of officers
have written books now extensively
! sold to newly commissioned officers,
especially those of the reserve corps.
He rules that these officers are not en-
titled to a profit at this time.