Evening star., 1944-02-27

ships and maritime property to the
Maritime Commission and food to the
Food Administrator.
Basic disposal policies recommended
in the report include:
Outright sales are preferable, but the
disposal agencies should have authority
to exchange properties, to lease them
and to sell on credit.
All Deals to Be Public.
But leasing must not become hid
Den device for the Government to COM
pete with private plants: it must not
become hidden device for subsidies
by any name-to any one"
Once plants leave the Government
hands they must stand on their own
feet competitively.
Surpluses should be offered in lots
small enough to allow small business, as
we'll as large firms, to obtain them.
All transactions should be handled
completely in the open as in goldfish
bowl"
Monopoly should be lessened rather
than increased.
Let us keep in mind that these sur
pluses, properly utilized, represent tre-
mendous wealth to ourselves and to
Others" the report urged.
warning was included, however
that the public must face the inevita-
bility of heavy dollar losses on some
properties because of inflated wartime
production costs and the specialized ma
ture of the goods. These losses should
be borne "as part of the necessary cost
Of war"
The report cautioned that special
consideration must be given the Gov
ernment's huge new war plants produc-
ing aircraft, aluminium. magnesium
synthetic rubber and the like.
These are industries where the Gov
eminent investments are so huge that
the disposition of Government-owned
facilities could decide the fate of the
military security are paramount or
which may be part of the settlement
of the peace the document stated.
sl5.5Oo, 100000 in New Plants.
"Sales in these fields will not involve
a matter of selling so many single
plants, but require the formulation Of
public policy on an industry-wide basis"
Mr.. Baruch estimated the Govern
ment's wartime investment in new
plants and machinery at $500 900 600.
This total was broken down as follows
Four to five billion dollars in plants
specially designed for the manufacture
of munitions, such as powder and am
munition loading, with little or no
peacetime value. Most of these facili-
ties are likely to be kept in standby
condition as a reserve and will not come
into the market.
Improvements and expansions in arse
nails and navy yards operated by the
Government through peace and war
$500 100000
In scrambled" miscellaneous plants
$1,000 100000
A total of S., 900 900 900 in industries
which can produce for peace as readily
as for war, if markets exist. These
plants include steel, chemicals, gasoline,
synthetic rubber, machine tools, elec-
trical equipment and industrial COM
ponents.
Much Could Be Converted.
About s30o0,000,000 in plants which
could be converted to peacetime produc-
ton after some physical alteration.
These include facilities for making air.
planes aircraft engines tanks mimi
tions and assembly plants, some of
which likely will be retained as stand
by reserves.
This breakdown shows that plant dis
posal will be more manageable prob
lem than is indicated by the $15,5OO,-
100000 total.
In disposal OF plants, as we'll as the
countless other properties, the terms of
the peace settlement and the size of the
armed forces to be maintained after the
war will be factors determining the size
OF the job to be done.
The Baruch report appears to treat
with unusual wisdom great problems
already pressing for solution In any
event its Importance in deciding the eco
nomic destiny of the Nation cannot be
overemphasized, since there is every in
dication it will be regarded by the ad-
mlnlstratlon as document to be fol-
lowed religiously-just as the earlier
Baruch report was the bible" for the
synthetic rubber program