Evening star., 1935-03-27
BARUCH PROPOSES
PAY YASYOUF|GHT
War Plan of Taxation and
Price Fixing Urged at
Arms Hearing.
(Continued From First Page)

(C0ntlnueQ FToHl rHoV aeSI
anplified by the work or fight pro-
vision, but labor would not De con-
scripted.
"Conscription of labor is unconsti-
tutional, un-American and unneces-
sarv. Wages would remain in keep
ing with the price structure and
change only if found necessary.
The Army and the Navy would
handle war matters. but control and
direction of our economic life would
remain under civilian management,
directed by the President"
Baruch estimated his wealth in the
wartime period at S9,800.000. plus
some cash balances, the size of which
! cannot recall"
In 1917, he said his income de-
clined almost rs per cent from the
previous year. In 1918 and 1919, he
reported no taxable income, "as had
sold large portions of my holdings,
showing actual losses each year, and
reinvested the money in Liberty bonds.
MY income from them was somewhere
around s2o0,000
"I made absolutely no purchases
OF securities except bonds, mostly Gov
ernments.
From the time 1 entered the serv-
ice until left in July, 1919. ! was
not a participant, either directly or
indirectly, in any market transactions.
Sw0pe at Hearing.
Arriving ahead of committee MEM
bers, he graciously greeted each one
as he appeared and presented to them
his companion, Herbert Bayard Swope,
assistant chairman of the War In
dustries Board under Baruch.
Baruch Immediately placed before
the committee stack of reports and
records bearing on his World War
activities. He said some he sought to
produce had been requisitioned by the
Government during the Harding ad-
ministration land. as is often the case
with Government requisitions," were
not returned.
Saying the committee had asked
records of his own financial operations
during the. war, he presented photo
static copies of his income tax re-
turns, commenting meantime:
An impression was somehow created
that your committee was unable to
get any copies of my returns"
He summarized his income tax re-
ports to show that in 1916 on an
income of 81, ,301 ,O28 he paid S26l. .l69;
in 1917 on an income of $6l7,O6l he
paid s263.762.
For 1918 and 1919 he reported losses
recalling to the committee that he
resigned virtually all his business con-
nectionS when he took over direction OF
wartime industry.
Made Three Investments.
"I carried through the war three
major investments in which 1 am
still Interested They we're: First,
Alaska Juneau Gold Mining Co.; Sec
ond, Texas Gulf Sulphur Co., which
never produced an ounce of sulphur
during the entire war, and third. the
Atolia Mining Co., a producer OF
tungsten to which you have made
previous and public reference.
II originally invested in this mine
in the year 1905 or 1906, Its po-
tential value lay in the fact that 1t
was the most promising tungsten
development in the United States.
Tungsten became important as an
alloy before and during the war be-
cause OF the absence Of other alloys
In American mines.
He declared no one would buy 1t in
1917, fearing it had no ore reserve. so
accordingly was compelled to retain
my holdings"
Because tungsten had become in
creasingly important as an alloy" ne
continued, IT ordered the segregation
of every dollar that the mine paid me
and directed that all the dividends
should be paid to various charities"
Gave Thousands to Charity.
Sometimes remaining seated, but
more often standing while he empha-
sized his statements with frequent
waves Of paper-fllled hands, he de-
clared his charitable contributions
amounted to 100000 while his tung-
stem dividends reached but 100000.
He presented one Treasury Depart
ment report showing statement OF
loss approved by Treasury official
amounting to $4l8,483 in 1918.
The Senate Investigating Commit
tee, armed with figures about earn
ings by industry during the World
War, has agreed to submit definite
proposal for controlling war profits to
the Senate before April 1.