Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-06
Baruch Cites Experiences.

This is not new problem. Ber-
nard M. Baruch, chairman of the
War Industries Board in the last
war and who should really be guild
ing Americas defense program to-
day, had this to say in his testimony
in 1882 before the War Policies Com
mission:
THE draft everything pro-
ponentS seem TO think that confiS-
cation of productive facilities
promises a more effective use of
them in the interests of govern
ment and for the purposes of war.
During the World War, government
had power to commander factories
and to operate them under bureau
cratic direction. I do not recall
a single important industrial enter
prise that was thus taken over. This
does not mean that the use of the
power was never advocated. On
the contrary, it was seriously urged
in respect of great industrial
plant which was thought by some
not to be giving full cooperation
to its Government. The proposal
split on the rock of this argument:
"'Who will run it? Do you know
another manufacturer fit to take
over its administration? Would you
replace a proved expert manager by
a problematical mediocrity? After
you had taken it over and installed
your Government employe as man
ager, what greater control would
you have then than now? Now you
can choke it to death, deprive it
of transportation, fuel and power,
divert its business, strengthen its
rivals. Could any disciplinary means
be more effective? If you take it
over, you can only give orders to
an employee backed by threat of
dismissal and with far less effect
than you can give them now. Let
the management run the plant and
you run the management
Nobody with any familiarity with
industry could seriously urge
wholesale assumption by any Fed
eral bureau of the responsibility for
management of any or all of the
vast congeries of manufacturing
establishments upon which we must
rely for extraordinary effort in event
of war
Businessmen "COnduits."
1t has been supposed up to now
that the President summoned to
Washington outstanding business
men to manage the defense pro-
gram. On the surface it has seemed
that they had something to do with
the attainment of production Of air.
planes and weapons of warfare. They
are mere conduits. however, through
which a lot of official papers and
documents and contracts flow. They
are helpful and efficient personnel
within the limits given them by the
President.
But Mr.. Roosevelt hasn't delegated
any authority over the really vital
problems of defense policy to the
businessmen. Only yesterday, men,
bers of the Defense Commission
were appealing to committees OF
Congress to eliminate the ham,
stringing provisions Of the pending
excess profits bill as they relate to
amortization.
Even Secretary Wallace, who hith-
erto has not been lacking in candor,
has gone on the stump to repeat the
fiction about the need for conscript-
ing industry. Such tactics are de-
laying the defense program. These
mistakes are made by the New
Dealers, not deliberately but through
sheer ignorance of industry's prob
lens. 1t has been the same for
seven years and that's why America
has had such a long depression.
Maybe an industrially minded ad-
ministration can do better.
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