Gary vs. Baruch

At the annual dinner of the American Iron and, Steel Institute, Judge Elbert Henry Gary declared that "in the Fall of 1917 or the Spring of 1918" a proposal was made by the Federal Government (through the War Industries Board, of which Bernard M. Baruch was Chairman) to take over the steel industry. He alleged that the proposal originated with Secretary of the Treasury W. G. McAdoo, and that vigorous protest by American steel men, including himself, had blocked the plan. Judge Gary stated that his wish, in making public this hitherto unpublished episode, was to make a permanent record of the matter.

Mr. Baruch was quick to challenge the accuracy of Judge Gary's disclosure, and especially the Judge's inference that "it was a gigantic communistic scheme." According to Mr. Baruch, at the outbreak of the War the American steelmakers, flushed with great profits made on sales to European belligerents, wanted to charge the U. S. Government the same high prices as had been obtained from the Allies. To this Mr. Baruch strenuously objected. The War Industries Board passed a resolution to take over the steel plants "if the steel interests should not be willing to give their full cooperation because of the prices fixed." After that, according to Mr. Baruch, the steel companies cooeperated in splendid fashion. Mr. Baruch claimed that some steelmakers at first showed a selfish attitude in the matter of pricing steel needed by the U. S. Government, and that in another war industries as well as men should be "nationalized." In short, Mr. Baruch admitted the facts charged, but defended his attitude and attacked that of the steelmakers.