New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-02
Profit Limitation
Not Yet Effected
By Price Control
u. S. Chamber of Com
merce Finds Purpose Only
Partly Achieved

WASHINGTON, Nov. LIN drawing
conclusions from the results thus TAR
of what the government is dong IN
regard to price control and distriou-
ton, a war bulletin issued by the COM
mittee of the Chamber Of Commerce
Of the United States, cooperating with
the Council of National Defence, de-
clares there should be clear under
standing Of the nature and extent oil
what has been done.
Control of prices b. the government,
it is explained. may be for the FOL
lowing purposes:
Ito enable the government or the
public, or both, to purchase at prices
below those established by market con-
ditions.
ITO substitute for the ordinary
method of distribution By price meth
cd OF distribution of product on
basis of the country's requirements IN
connection with the prosecution OF the.
war.
80 prevent the making of large
protts out of the war and thereby,
among other things. eliminate cause
OF great discomfort on the part OF
labor.
Where Prices Are Fixed
Our government, the bulletin goes
on. has fixed prices on copper, steel,
coal. coke and pig iron. In these cases
- I. n 40 n "a
Allies have been the same as that to
our government, and the prices have
been substantially below those prevail
ing in the market al the time. There
fore, the control of these prices by the
government has accomplished the first
of the three purposes indicated above.
There has not, however, been estab-
listed thus far in any case method
OF distribution in connection with the
control of prices, II is said Priority
on specific orders has been granted.
but 10 general effort mas been made to
distribute production among those
whose requirements are most urgent
considered from the standpoint of ma
tional defence.
In face. the activity of the priority
committee of the War Industries
Board mas thus far been confined al
most entirely 10 the granting of pri-
ority on government orders. No gen
eral rules Of distribution have been
laid down. No announcement has been
made of a classification Of essential
and non-essentisl industries. Priority
decisions are still made OF the merit
of the particular application. and not
on the thorOugh-going consideration of
. ba % ind
II mis- makes il quite evident that, up
10 the present time, the government
has not attempted to accomplish pur-
pose No. ; of the classification men
toned above" the bulletin says.
Therefore, as large profits are being
made even in industries where the
eminent is not yet able 20 enter upon
the accomplishment Of the third Of the
purposes above set forth"
1T is not unnatural that the govern
ment should proceed slowly and hest
ton as the control of prices and dis
tribution," the bulletin continues. THE
very magnitude Of the undertaking re-
strains the vigor and energy which
would characterize the effort 10 solve
a
however. success is only relative, and
in the early stages may be lost sight
OF entirely because OF unavoidable con-
fusion.
General Basis for Prices
There has not been developed as
yet clear policy with regard to secur-
ing the assistance of business men in
connection with the control Of prices.
In some cases the government has
called upon those interested in busl-
ness 10 participate in the actual fixing
Of the prices. This has resulted in
fixing of prices by negotiation-which
is clearly harmful. In the judgment
Of the committee, men elected by an
industry to represent IL should be
called upon by the government for full
information which would be helpful in
fixing prices, but the actual determi.
nation of the price should be semi.
judicial function.
Success in price control" the bul.
letin concludes, "is to be expected only
where made in connection with distri-
button, and when the attempt is made
as near as possible 10 the source OF
supply; also. when advantage is taken
OF such helpful aids as the control %
railway transportation. and, further.
more. when the government has the
assistance Of business men of knowl-
edge and experience, furnished on a
disintercsted basis and under such cir
'cumstances as to bring about co.
operation in the industries which such
men represent