Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-24
BAKER AND BARUCH
DISAGREE ON PLAN
FOR PRICES IN WAR
Former Secretary Declares
Advance Preparation Was
Utterly Useless.
INDUSTRIES BOARD HEAD
WOULD PREVENT PROFITS
China Making Bid to Enter Steel
Industry With New $780,.
100000 Mill.
BY JOHN F. SINCLAIR.

b1 JOHN r. SINCLAIR.
NEW YORK, May % (NANA).-
3. M. Baruch, who acquired a fortune
In the Street before President Wilson
made him chairman of the War Indus
tries Board, wants the Government to
freeze prices" at the beginning OF the
next war and thus save at least so per
cent OF the war profits.
In modern warfare administrative
control must replace the law of supply
and demand" said Mr.. Baruch, adj
dressing the War Policies Commission.
To measure imitation of price and
profit, We must have some norm. The
OBVIOUS norm Is the whole price struc-
lure as 1t existed on some antecedent
date near the declaration OF war.
That determined. we need a method
OF freezing the whole price structure at
that level. The obvious way to do this
Is simple: BY proclamation to decree
that every price in the whole national
pattern shall be Of that determined
date, and 1t shall be the maximum that
thenceforth may be charged for any
thing--rents, wages, interest rates,
commissions, fees-in short, the price
OF every item and service in commerce.
Such system would reduce the cost of
war by so per cent, eliminate war profits
and imitation, conserve the country's re-
sources and preserve the morale Of its
people"
Newton D. Baker, President Wilson's
Secretary Of War. puts thumbs down"
on the BaFuch plan. He doesn't like It,
and he told the War Policies Commits
sion that it would not work-that it
would hurt, not help.
Laws passed in authorization Of war
hampered more than helped the prose-
cution Of the World War" he said
But Mr.. Bakers first assistant in the
last war-Benedict Crowell-haS come
out strongly for the Baruch plan, in
spite OF his old chiefs objections. II
don't see how the Baruch plan can be
improved upon" Mr. Croweli says.
One thing Is certain, If profits can
be taken out of war, the danger of
war will be reduced.
Bonuses Private Business.
How many companies have bonus
systems which the stockholders have
not approved?" asks A r. Of Illinois.
No compilation has ever been made.
Heretofore many executives of large
corporations have considered that their
own private business. But stockholders
are growing more insistent on know
ing all the details of the business in
which their money is invested. The
New York Stock Exchange is likely to
rule that all such subjects as bonuses
paid to executives must be made
known in the future to the Stock Elk
change.
It is quite generally believed that
large percentage Of the bigger Amer
lean companies provides for bonuses to
their executive and often to employees.
too.
The most conspicuous recent bonus
example is that of Gerard B. Lambert.
newly elected president of the Gillette
q fnf boz NJ vxyl1, l. -
bonus rather than a salary.
The Lambert proposition, which the
stockholders will vote upon on June
10 next Is this: II the Gillette Co. earns
less than SIS a share, or $4,000. 900
during any year. the new president will
receive no compensation. If it earns
SIS share Mr. Lambert will receive
10000 shares of stock If the earnings
move up to $6 then another 20. 900
shares will be given him.
1t is conceivable that under such a
plan, If the earnings reached S6 in any
year, Mr.. Lanlbert's bonus might reach
s2,50o,o0o.
Threat to Pulp Industry.
While the Canadian minister of lands
and forests is busy assuring the jobless
thousands of Sturgeon Falls, where the
Abitibi Co.'S pulp mills shut down, that
the government hopes shortly to start
things going again, new threat to the
pulp industry in the North is sounded
by DR.. Charles A. Herty, chemist, at
the New York Chemical Exposition
A way has been found to make clean
white paper from the yellow pine in
the Southern part of the United States.
This pine was formerly regarded as use
less for making paper because Of the
large percentage of resin. It has been
however, that the trees
tested in the past were too old. All the
resin, practically, is contained in the
heart wood, which does not develop
until the tree is about IS years old.
Trees under that age contain but Is
per cent resin. The Canadian spruce
now employed for news print has three
fourthS of l per cent, and the differ
ence between the two is unimportant
for paper-making Indeed, the paper
exhibited by DR.. Herty, although pro-
cessed with sulphite in the ordinary
seemed every bit as flne-look-
ing and firm as that now used.
There are today about 150,000,0oO
growing these trees. This turn Of AZ
fairs may spell the development Of an
other major industry In the South.
China to Produce Steel
China is making a bid for rank In
Of 500, 0o0, 900 steel mill at Pukow.
Steel imports into China average at
present around 100000 tons annually.
This figure is due for a tremendous in
crease as soon as the government EN-
banks fully on the great railroad build
ing program which the oriental re-
public Sorely needs.
Few people are. aware of the fact
that during the recent civil war period
China continued to push her rail de-
velopment to a surprising degree.
Many hundreds of miles of tracks were
laid down, especially in North China
and Manchuria.
The gigantic steel plant being rap
idly built at Magnetesgorsk. Soviet
also comes to mind. Here is q
new and formidable possibility of COM
petition from Asia in the steel in
dustry.
(Copyright, 1881, by North American News
paper Alliance, Inc)