The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-14
Wartime Profits
By scupps-Hcrord Newspaper Alliance

BY 6cTfpps-HCWdTQ aeEspdpSY AHtQHce
WASHINGTON Dec 14-The Capital was
w puzzled today by President Roosevelt's sud-
den crusade for abolition of wartime profits and
by the wounded plants of Senators Nye and
vandenberg that the President was snubbing
their munitions inquiry.
Many explanations were suggested for the
Presidents surprise announcement which came
while he was IN the midst of numerous crucial
decisions on issues that appeared more urgent
than profits from hypothetical war.
Among the opinions voiced in various quar-
ters-no1e of which profeSsed to speak on
authority-were these:
/. That the President, sensing the wide public
response to the Senate exposures, decided to
take over the leadership from the two Republi
cans who sponsored the munitions inquisition. In
his connection recurrent mention of Senator
vandenberg (R. Mch) as Presidential timber
was recalled.
O. That the President was prevailed upon by
Secretaries Dern and Swanson to make an effort
to forestall the Senate committees threatened
denunciatioin of the War and Navy departments
for cooperation with munitions makers. Mr..
Dern has recently been putting of promised
appearance before the committee
g. That the President believes naturalization
of the munitions industry, advocated by a ma
jority of the Senate committee, is too socialistic
and he desires to head off such move by spon-
soring more moderate proposal.
T. That he is motiyated entirely by concern
for an improved national defense, possibly be-
cause of recent unfortunate trends in inter-
national politics.
s. That he was simply sold" the idea
during a recent visit Bernard M Baruch, with
whom the wartime drafting of all industry has
long been an aspiration.
MIR. BARUCH, who with some justice like to
1V1 think of himself as an American Dis
rael probably knows better than any other man
the need for effective restraint on wartime
profits. For as champion of Woodrow Will
sons War Industries Board he was close to
the hot breath of profiteering greed
But this silver haired Wall Street multi
millionaire is no friend of Government opera
ton in peace time of such industries as ship
building and powder making
Mr.. Baruch and his then associate in bust
ness, Gen. Hugh S. johnson, were two of the
principal witnesses before the War Policies
Commission which, under the Craftsmanship of
Patrick j. Hurley, recommended in 1882 broad
program to end war profits.
Testifying before the commission Mr. Ba-
ruch proposed law making it illegal in war
time to buy or sell anything, including labor, at
higher price than that prevailing before a
date to be specified by the President.
The President, under the Baruch plan, would
have power later to adjust any such price up or
down. He would also have power to license all
fed by him. The fnancier favored, as we'll, a
high excess profits tax in wartime.
1t was assumed here today that the President
had in mind something along the line of these
recommendations.
r22tTATED Senators pointed out that the reso-
luton creating the Nye Munitions Committee
instructed it to review the findings of the War
Policies Commission and recommend legisla-
tion The President. they said, was usurping
their proper function
Senator Nye himself sponsored in the last
session of Congress a wartime tax of SO per
cent on all incomes above $4,000. He plans to
reintroduce the bills n January.
The fact that the President called in not only
Mr.. Baruch but Gen. Johnson as WE'LL while con-
sulting with none of the Senate committee, was
salt in the wounds of Messrs. Nye and Vanden-
berg. Senator Nye was one of the Senate's most
vigorous critics of the Generals administration
Oh MIRA
Others of the White House consultants on
war profits have also been frequent targets in
the Senate chamber-notably ReXford c. Tug
well and Maj Gen. Douglas Macarthur Mr..
Baruch was named chairman of the group.
The resentment of Nye, Vandenberg and other
Senators, already warm, will probably burn even
hotter in the Senate next month when the mu-
nitions committee makes its plea for more funds
with which to continue the inquiry