The Birmingham age-herald., 1924-05-25
BARUCH BARES
 NEAR SEIZURE
 OF STEEL PLANT
Attempt To Assess Unfair Prices During World
 War Is Alleged

(By Leased Wire to The Age-HeraId) NEW YORK, May 24.--How near the United States government came toward assuming control of the nations steel plants during the war, if the industry had not fixed prices acceptable to the government, was revealed in a statement tonight hv Bernard N. Harueh, wartime cK tlie N war taduAkries board Baruch's statement, which charged that the steel men at tempted to assess unfair prices against the government, was issued | in answer to a speech delivered by Judge Gary last night before the ericRn Iron-Steel institute. Gary's speech, BaIuch declared, Contains many inaccuracies which the record controvefts."
 Gary said that. on the supposed in- stigation of William G. McAdoo, the war industries board proposed in the fall of 1917 or the spring of 1918 to take over the steel industry; that the steel industry replied this could be done only by force and that when the situation was reported to President Wilson. the latter decided to let the matter rest. Wilson IndoRsed View
 Baruch revealed in his statement that the war industries board had passed a resolution declaring that If the steel interests should not be willing to give their full cooperation because of the prices fixed, the war industries board would, take the necessary steps to take over the steel plants" This was the first official intimation, he said, of the Liberalization" to which Judge Gary referred in his speech. Baruch said he had warned Gary that the government might have to take control of the indus try and that President Wilson had in- dorsed this view.
 Almost immediately after the decla- ration of war, according to Baruch, when he was chairman of the raw ma terials section of the council of na- tional defense, he met representatives of the steel companies at the request of President Wilson. The meeting was particularly in reference to the price of ship plates,' Baruch says, which they fixed at four and a quarter cents a. pound, assuring me they knew that would be satisfactory to the govern ment. I urged them not to insist upon that price because it was too high and unfair in the circumstances. They could not see my viewpoint, although in the evening l again met Judge Gary and made the same request, to which got the same reply"
 Bafuch prefaced his revelations of industrial war history with regret ''that the remarks of Judge Gary bring to public attention unnecessarily a very Unpleasant incident of the war in con nection with that part of the steel in- dustry for which he was the spokes. man."
 Baruch declares that after the federal trade commission had made an inquiry into the prices of steel, J. Leonard Rep logic, director of steel for the war in dustries board, and other board mem- bers, prepared a schedule of prices This fixed the price of steel plates at three cents a pound. ''The necessity for this having been demonstrated by the fact that a few days previously a very large tonnage of steel plates was sold by one of the steel companies to one of the associated governments at IA cents a pound" a hitherto unheard of price,"
 This schedule was submitted to the steel men, September 21, 1918, accord | ing to Baruch, but, led by Jdge Gary they stood out for higher price. 4 After adjournment" Baruch con | (Coutiu,xad nm Para Thraal