Salt Lake Tribune | 1917-07-29 | Page 1 | New Board to Supervise all Wa4r Purchases

HEW BOfifiO TO SUPERVISE ALL WHO PURCHASES Will Also Decide Priority of Manufacture and Shipment; Ship-ment; Connecting Link With Industry. OTHER BODIES HAVE BEEN REORGANIZED Frank Scott Will Be Chair-man; Chair-man; Labor Member Is Chosen; Defense Council Coun-cil Unchanged. WASHINGTON', July 2S. organisation organi-sation of the government 's war purchasing pur-chasing system through creation of war industries board to supervise buying buy-ing &u3. to docide priority of manufacture manufac-ture and shipment waa announced tonight to-night by the council of national defense. The new board will be the connecting link between the government and industry. in-dustry. It will be charged with the great responsibility for quantity production, pro-duction, will determiue the question of creating or extending industries demanded de-manded by the war and will pass on prices to be paid by the government. Iti membership follows: Frank Scott, of Cleveland, Ohio, chairman; chair-man; Bernard M. Baruch, of New York, of the council's advisory commission; Hugh Frayne, of New York, representing represent-ing labor; Robert S. Brookings, a 6t. Louis merchant; Kobert S. Lovett, of the Union Pacific system; Lieutcnajit Colonel Palmer E. Pierce, representing the army, and Rear Admiral Prank 1 . Fletcher, representing the navy. Division of Work. Three members of the board and Herbert Her-bert Hoover are designated to constitute consti-tute a government purchasing commission commis-sion serving under the board 's direction. direc-tion. The work of the commissioners will be divided as follows: Mr. Baruch, in charge of raw material mate-rial purchases; Mr. Brookings, finished products; Mr. Lovett, to decide priority, and Mr. Hoover, food buyer. The general munitions board, of which Mr. Scott has been chairman, is merged with the war board and all the duties of the munitions board will be taken over by the new body. There will be no reduction in the number num-ber of existing committees of representatives represen-tatives of the various industries, but thev no longer will arrange purchases auf will serve solely as aavisory bodies, bod-ies, and through the board will answer direct to the council instead of to the members of the council's advisory commission. com-mission. Will Still Criticism. There will be no change in the organization or-ganization of the council itself, whose membership is drawn from the cabinet, nor in the organization of its advisorv commission, made up of industrial au(i scientific representatives. The change in the organization is expected ex-pected to still criticism of the old purchasing pur-chasing system on the grounds that manufacturers man-ufacturers and producer? as members of committees have passed on purchases from their own plants. Under the new plan the war industries board and its purchasing commission will approve or disapprove of forms of contracts. The industries committees and sub-committees will continue to advise as to quantity quan-tity production, but will have no voice in the prices to be paid for government supplies. The war and navy departments will delegate purchasing powers to their representatives rep-resentatives on the board, who will sign contracts. Under the law civilian members mem-bers of the board are not permitted to sign contracts for these departments and the new arrangement, while it actually gives purchasing powers to the board, obviates the necessity for new legislation. legisla-tion. Old System After War. There is no desire to change present statutes, it is said, because when peace comes the intention is to eliminate the board and go back to the old system of making purchases. No announcement was made concerning concern-ing allied buying, but a plan is under consideration which provides for the coordination co-ordination of allied and American government gov-ernment purchases. In naming one member of the board as a priority commissioner, the defense council recognizes that the question of priority will play an important part in production of war materials. The board will decide not only which departments shall be supplied first, but also will decide de-cide between private users of materials where one or both users are working on government contracts. Labor was given a representative on the board at the instance of Samuel Gomper5 of the advisory committee, who pointed out that labor is directly interested inter-ested in any changes that war may bring to industrial establishments.