The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-03
War Profiteering, No. a.
BARUCH PLAN
LIKELY TO Be
BOARDS CHOICE
PriCe-Freezing Proposal Is
Favored by Most of
Commissioners.
BY RUTH FINNEY
Times stan Correspondent

Times stan Correspondent
WASHINGTON, Dec. 3.-If the
war policies commission makes any
recommendation when it reports to
congress next month, for regislation
supplementing the national defense
act, the Bernard Baruch plan, sub
mitted to the commission last
spring, probably will form the basis
Of it..
The principal feature Of this plan
calls for setting aside the law of
supply and demand, and freezing
the whole price structure as it
existed at some day shortly before
war was declared.
Baruch recommended legislation
which would empower the President
b to thus freeze prices, and would
make it unlawful to buy or sell, OF
to contract for anything at diff
ferent price. He would give the
President power, also, to adjust
prices up or down during the war
as he saw fit.
He recommended also a statute
giving the President wide powers to
commander any supplies or man
ufacturing facilities.
Would Be Constant Warning
"The very existence of such a
law would be constant warning that
never again in America will any
man make as much profit in war
as he can make in peace" Baruch
said.
For control Of wartime industrial
activities, Baruch would establish
much the same organization that
operated during the World war. He
himself was chairman of the war in
duStrieS board.
AT least one member of the COM
mission will oppose the plan, how
ever. Representative Ross A. Col
Inns in a recent speech declared:
II munition makers really under
stood Baruch's plan, it would be a
financial incentive for them to
drag us into another war because
they would have the practical assur-
ance that labor costs would remain
the same and prices of products
they purchase would remain the
same, while they in turn would re-
ceive the same prices they received
on the designated day, all of which
would give them unheard of wal
profits.
Warns of Larger Profits
"The plan contemplates the same
organization that existed during the
latter part of the war;" said Collins.
THE report of congressional COM
mittees that investigated war profits
declared that in every purchasing
branch of the government many of
the men that made the purchases
actually were connected with the
industries from which they bought.
IF this statement is true, then
these men would recommend the
freezing of prices they wanted UNI
frozen y. and it is evident to my
mind that the scheme would in the
end mean larger profits than were
made in the last war"
Meanwhile, the war department
has its own thoroughly prepared
plan for industrial, as we'll as mill
tary, control in event of war. The
national defense act of 1920 pro-
vided for appointment of an assist
ant war secretary, whose duty it is
to arrange in detail for procure
ment of army munitions and sup
plies and to develop broad plans
for mobilization of industry to meet
the country's needs in war.
Baruch, Hurley Agree
At the commission hearings Fred
erick H. Payne, assistant secretary
presented a seventy nine-page plan
calling for establishment of an in
dustrial priority list, commander
ing, and for price control. To ef-
feet this latter the plan proposes:
ITO stabilize prices so as to pre-
vent rapid fluctuations which en-
courage speculation.
ITO discourage boarding.
ITO synchronize price changes