New-York tribune., 1920-02-28
Predicts Peak in Production
Shortly Will Be Reached,
With Resultant Reduction
in Present High Values
Price FixingSaved Morale
But for 1t, He Declares, the
Nation Would Have Br0k-
en- Under q Riot of Greed

government nXlnS Oh raw material
prices during the war, only the shame
of producers would have limited their
rise and that the morale Of the nation
would have broken under 8 riot Of
greed.
In the course Of FIVE hour examina-
ton, Mr.. Baruch gave first hand &C
count of his services as chairman of
the War Industries Board and as o
member of the Council of National De-
fense and the American Economic
Mission at the peace conference.
Through the long ordeal with Chairman
Graham trying to fathom his relations
with the President and his association
with "Wall Street interests" Mr..
Baruch never lost his temper or his
smile.
Out of his experience with industrial
problems Mr.. Baruch offered the com
forting hope that top production soon
would come, with resultant fall in
prices, unless there is a cataclysm,
some act of Providence, or undesirable
government action" Mr.. Baruch said
there had been some let-down in the
desire to work, but that this was "be-
ing done away with" There would be
the utmost decentralization to-day, he
continued, had the government failed
to take hold and fix prices in wild
scramble of world buying.
Sees Hope In Large Production
when the hoarder and profteer see
great production in sight-and they
Will be the first to see it-they will get
from under" he declared.
In questions about Mr.. Baruch's mis-
sion TO the peace conferences Chair
man Graham failed to show uny evi-
dence of a rupture between the Presi-
dent and the witness, the latter declar-
ing that if Mr.. Wilson found fault with
his work "he was kind enough not to
say So He added that the economic
policy s laid down by him was ap-
proved by the President and the big
Four"
Mr.. Baruch smilngly defended him
self against any "charges,' including
establishment of wartime censorship
daylight saving and prohibition. Once
ne was asked who suggested Herbert
Hoover FOR food administrator
could not say any more than
could say who it was that first named
him as a Presidential cardidate." he
replied, and the inquiry quickly turned
to other subjects
into the war, Mr.. Baruch testified, he
told President Wilson there was no
escape, at the same time urging mobi-
nzatloH OF the nations resources He
could not remember. he said, what
opinion the President had expressed on
mat question.
Supported Plattsburg Plan
Mr.. Baruch was asked if the rail
Dads were taken over on his advice.
NO" he replied. "It was brought to
board. however, that the railroads were
not functioning. There was difficulty
N getting money and danger of a
praekoo"n of the whole transportation
machinery. | approved of the recon
)hendatlon that the government wouio
nave to take control of the roads O.
furnish money for their continued op-
Grafton. do not think the peop. G
realized the Importance of the rail
los-ds IN war time. If they had ceased
to function it would have been-good
night"
When questioned concerning his re-
lations with President wilson and as
10 his views about this country being
drawn into the war Mr.. Baruch said:
Il had Been disturbed by our condi-
Lon OF unprcparcdne3s. | was one OF
he first TO support General Wood's
F.attabusg project; indeed, gave some
OF the first money for it, | felt as We
might be drawn into the war it was
wise to mobilize our industries, ano
told the President as much."'
Chairman Graham asked Mr., Barucl
II, while In Paris as an economic ad
wiser to the American peace delegation
he ever sat in" at the big confer
ence"
"Yes. indeed. And my advice or
economic questions was frequentl,
asked"
Did you draft any sections Of tn.
present treaty."
II am responsible for the economi,
sections put in by the Americans
was not bull in a Paris china shor
running amuck. The economic polio,
as recommended by me was approved
ny the President and the Big Four
Answering Representative Garrett
democrat, of Tennessee, who wanted t<
Know what would have happened with
cut price fixing of steel, for instance
MI Baruch said:
The price would have been limited
ny the producers own shame. There
was no mark to which it would no.
nave gone. 1T would have broken thu
morale of the people; there would hav,
been a condition calculated to result il
general breakdown"
Price Fixing Discussed
Answering Representative Jefferis
Republican, of Nebraska, Mr.. Rarnc}
SAID the question of fixing the pric,
OF cotton was never considered bv th,
War Industries Board, but was re-
!erred to special committee to sc,
II price fixing of the product was ad
visable. ""' a"
MIR. Jefferis also wanted to know i
!,1s ane council had anything to do viii
the prohibition wave" and Mr.. Barucl
Iaughlngly pleaded for mercy. CHA
was not my job" he said.
MT. baruch said the War Industr;e
noard was simply "the instrumentalit
sn.ough which the government carrie
ou1 s1ders respecting industries" add
/ nR that 1t never made contracts hn
nxed prices after dealing with renre
sentatives of the particular industr;a,
what we did with copper best il,ns
trates it." he said. Before the IJn;ta NIT;
States went into the war it 40
brought to my attention that the Nav
department. needed great deal Of cor
per and that 1t was difficult to obtail
! Immediately saw John D. Ryan an
Daniel Guggenheim, who said the
would give the government all the cor
per. needed at any price to be decide
on later. To arrive at some price basj
we took the ten-year average. whic
was 1923 cents, although copper the
was selling at from SO to SO cents"
Dinner for puhI;~;sv No.