The sun., 1918-11-23
SPLIT ON PLAN TO
HALT WAR ORDERS
Bafuch and Industrial Chiefs
Urge Wasteful Contracts
Be Cancelled Now.
BAKER WOULD GO SLOWLY
Secretary and His Advisers
Fear Panic but Opponents
See Little Peril.
spsetar pespateA 70 Tar suN.

wssHFNoroN, Nov. Aft was made
AcreaAingly clear to-day that decided
differences IN opinion have arisen be-
tween the Presidents advisers over the
course to be pursued with regard TO
cancellation OF war contracts and the
cutting out OF the expenses incident to
the war.
There IN good reason to believe that
Chairman Baruch OF the War Industries
Board and many OF his advisers, includ-
ing some Of the best known Industrial
unptaihs Of the country, are in favor
OF taking the axe Mt once, believing
there are orders sufilcient for civilian
reeds TO prevent any Industrial democrat
ization and that the labor situation
would quickly adjust itself.
One Of these advisers was authority
for the statement to-day that all war
contracts should be cancelled without
any delay to permit the industries of the
country to rebuild themselves and get
ready for the worldwide opportunities
for foreign trade that are rapidly OPEN
itg UP.
THE authority, whose name would be
recognized throughout the Industrial
world, secuted the idea Of an Industrial
panic. Whatever losses might be sus-
tained in the process. he eaid, should be
adjusted by the Government through n
quasi-jodiclal powers and allowance
made in the financial programme FOR the
prompt adjudication OF such claims.
On the other hand. Secretary Baker
t, apparently has taken a contrary view.
largely Influenced by his belief that de-
nlofalfsation would occur Secretary
Baker was asked to-day by THE SUN
correspondent II the failure 10 cancel all
contracts at once did not mean a serious
economic waste through the conversion
u raw materials into finished products
for which there would be 10 USE
There Is an economic waste" said
Mr.. Baker, but the cancellation OF all
contracts at once would bring about
serious industrial decentralization which
must be avoided. / do not refer only to
labor. but to Industrial conditions gen.
rally"
Ignorant OF british Action.
Mr.. Baker WAS asked x Il was not
true that Great Britain had taken the
axe at once and stopped work on all con-
tracts
u have no information TO that effect"
said Mr.. Baker. "and do not believe that
either Great Britain or France are pur-
suing a different policy from our own.
We already are cancelling many con-
tracts. as l showed In my letter TO Sem
ator Martin. think the sum mentioned
very large one considering the prof.
Tam we have had to face. These CAM
cellations are going on at a rapidly IN
creasing rate"
IN support of their contention that the
contracts should be cancelled at once
officials OF the War Industries Board
insist that already there is a tremendous
demand from abroad for pig iron and
copper ore. Despite the statement
Secretary Baker, their Information is 10
the eject that Great britain has can
celled her war contracts andthat she has
been Influenced In 80 doing by her desire
20 rehabilitate and reconstruct she in
dustries that have been engaged solely
during the four years OF war In produc-
ton OF munitions and militar ysupplies
and entering the field for foreign trade
without delay.
These men admit that to Use I'D raw
materials In making war supplies for
which there Is no need will delay our
own entry into the aeld for foreign
trade.
II is known that some Of the indus
trial chieftians have sought personally
60 influence Secretaries Daniels and
Baker to effect the cancellation of con-
tracts as soon as possible. Fear OF
Industrial disturbances however, and a
labor panic seems still to haunt these
officials. 1t Is believed that before long
they will be brought to the view OF
those in tho War Industries Board
Wilson Against Baruch Plan.
Many Of the large industr'r- the
country are IN possession Z sIff'cient
funds. accumulated before ne entry
into the war. TO finance the immediate
orders that are placed with them with
out seeking the aid of banks. This IN
particularly true, II IS said, OF some OF
the large steel companies.
With the cancellation at once Of the
remaining contracts OF this Government
for war supplies, the raw materials
the reconstruction demand both at homo
ana abroad will be available for peace
purposes The continuation Of these
contracts, 1t IL pointed out by those IN
favor Of taking the axe at once, Is tantA-
mount to waste OF manufactured prod
ucts, labor public funds and finished
products as well. At the same time IL
prevents many industries from making
mechanical changes and replacing equip
inent that will be required before peace
time production can be engaged in or the
factories restored to normal pursuits
The point of view of the President In
the matter was not revealed to-day, and
II is not expected official expression will
fore Congress at the opening of the SEES
zion
From present Indications the Presi-
dent . still opposed 10 the plan under
Stood to have been laid before him by
Mr. Baruch for winding up the various
war bodies He is believed 70 be rese-v-
ing his own plan for presentation to Con-