WAR PROFITS

New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 13

WAR PROFITS

CONFISCATION MOVE MR. ROOSEVELT'S SCHEME LEGISLATION INTENDED FUTURE NATIONAL POLICY By Telegraph—Press Association—Copyright (Received December 13, 5.5 p.m.) WASHINGTON, Dec. 12 A plan based primarily upon the sharp Government control of wartime prices appeared to be likely to-day to result from a sudden move by President Roosevelt to confiscate war profits. Mr. Bernard M. Baruch, financier chairman of the old War Industries Board, was appointed by the Presi-' dent as chairman of a group which will frame war profits legislation for enactment this winter. A croup of members, including General Hugh Johnson, the former N.R.A. Administrator, were called together at White House, to the unconcealed irritation of the Senate Committee, headed by Mr. Gerald Nye. Tvhich has been investigating the activities of the munitions industry. Apparently it was regarded by some members as a move to head off their investigation. Basis of 1932 Report

The programme to be recommended by the President's new agency will be based upon a report submitted in 1932 by the War Policies Commission, made up of Cabinet members. Senators and representatives, and appointed to consider the very problem which Mr. Roosevelt proposed at his conference to-day.

Before his announcement that he was calling a Cabinet conference to frame laws to end war profits, Mr. Roosevelt informed "White House correspondents that "the time has come when legislation should be enacted to take the profits ont of" war. The boys in the trenches got a dollar a day, and the hoys in the munitions factories got eight to ten dollars a day. The nation has become conscious of the war profits problem as a result of the hearings conducted by the Nye Committee. " The question of preparedness is not under consideration, but the problem is one for permanent national legislation. No danger of international strife prompted the calling of the session." The President indicated that the problem would be considered from the point of view of over-production of war materials, large salaries to munitions executives and personal profits, etc. The conference would also take up the broad problems of the manner in which the United States would prosecute war in the event of participation. Definite Legislation The Congress will be asked, in a special message shortly to be framed, for definite legislation. " It is amazing," said Mr. Nye today, " that efforts should now be made which seem to check and halt the work of the Senate Committee, which is under instructions from the Senate to ascertain the facts and then to report recommendations for legislation.

" Our hearings have revealed that departments of the Government are really co-defendants with the munitions makers and profiteers. Instead of letting those departments now write their own remedial legislation, let us first have a full knowledge of the part those same departments have played in creating the need for a remedy."