The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-28
SHERLEY PREPARES
TO KNIFE CONTRACTS
Heads Of War Bureaus Sum-
moned to Tell How Much
They Can Save.
WILL CUT OFF MILLIONS
Baruch Says That Industries
Are Returning Rapidly
to Peace Basis.
sl.c.si pespateA TO rHr srx.

SEec4II Despatch 10 TIE SIX.
WASHINGTON, Nov. IA surgeons
soS il possible. a butchers job II neces-
eary. That is the avowed purpose
a, the House Appropriations COMMIT
zee in preparing to put a stop TO the
souandering Of millions Of dollars
when the war to all intents and pur-
noses Is at an end and the need Of
war production past.
As speed Is one OF the prime es-
sentIals. Chairman Sherley named to-
day a subcommittee Of seven members
10 determine quickly just how many
OF the hundreds of millions appro-
priatei for war work can he Gu or
The subcommittee will be headed by
Mr.. Sherley and will include Repre-
sentatives Gillett (Mass.). Cannon
In.), Ware (Pa-). Eagan IN. j., Sis
son (Miss.), and Byrnes Is. CO..
This committee will start work
Monday. The Secretary OF War will
be the first to be heard. It Is the pur-
pose Of the committee to hear the re-
sponsible head Of every department,
board. commission or other organiza-
lion which has had a war appropria-
ton and demand an accurate state
ment OF Just how much money they
can get along without. The commit
tee then will do its utmost to cut even
this amount
Martin Favors Prompt Check.
Senator Martin (Va.), chairman Of
the Senate Appropriations Commit
tee. Is at his home In Virginia. He is
known to share the views of Mr.. Sher-
ley, however. that an immediate check
must be put m the continuation OF
war expenditures. Members OF his
committee believe Senator Martin will
oe content to accept the cuts made by
the House.
Canoe 'lations thus far made have
not impressed the SherIey committee.
while its members were shocked by
he revelation of the vast reserve sup
plies already held while contracts for
the manufacture Of some OF the sup
piles held in numerals Of tens OF mil
lions are still running on.
in war production are passing through
the reconversion process at a very
rapid pace. according TO Chairman
Baruch OF the War Industries Board.
The work Of peace production Is being
resumed much more quickly than was
expected. Optimism over the indus
trial outlook generally. both from a
political and consuming standpoint
was expressed by Mr.. Baruch. No
oasis exists, he said, for either pessi-
msm or hesitation over the future IN
the part Of American business inter
ests.
Industry Has First ClaiHa.
As to cancellation Of contracts for
the production Of war materials. Mr..
Baruch said the interests Of the Indus
;ries and OF their workers had first
claim on the attention Of the Govern
inent before contract was cancelled.
and that under the circumstances can
@ellat'ons were proceeding "as fast as
possible"
Mr.. Baruch said wholesale cancelia-
ION of contracts had been INDUCED In
WHY where they Contained CdlCe.L1-
lion provisions, and It was manifestly
% the interest of the factories and
their workers as well as to the Gov
eminent that termination take place.
In every case instructions had been
sent out directing that the output be
slowed down to a rate which would af-
.ord the minimum necessary protec-
Ton to the factories and the wage
eerners dependent on them. While ad-
hitting that the policy had a paternal
lSpect. Mr.. Baruch said 1t was for the
best interests OF the country as a
whole and would result IN stable bust
ness and Industrial conditions.
The drastic supervision Of the Gov
ernment over industries precludes. ex-
eept in a minority Of instances, the
wholesale cancellation Of contracts
Fixed prices on commodities and ma
.erials, even la connection with sup
plies for the military and naval forces
viz BE abandoned at the end of the
present price fixing period.