Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1917-06-21
OIL And COAL
SEIZED BY U. S.
Steel Price Also Cut by De-
partment Order.
DANIELS ENDS CONTROVERSY

Once-Trade Board Will Decide as
to Justice of Price-Extensive Hold
Up Charged Against Coal and Steel
Firms.
Washington, June 19.-Secretary
Daniels has ordered coal and oil pro-
ducers to supply the enormous guam
titles needed by the navy at prices to
be fixed later by the President when
the federal trade commission has de-
termined fair rate. The navy will
use 1,750,0OO tons of coal and 50000,-
600 barrels of oil purchased under this
application of the authority granted
by congress.
Similarly steel for the entire navy
building program is being bought at
rate fixed when Secretary Daniels
rejected the proposals of the steel
makers as too high.
A basic price of $500 a ton was
fixed for steel plates in contracts for
ten steel ships signed by Chairman
Denman Of the shipping board Future
contracts will be let at that price in
stead of $95 paid for steel in some
earlier contracts.
The contracts were let to the Down
ey Construction company of New
York. Mr.. Denman refused to sign
them calling for steel at $95 and sent
them back to Major General Goethals,
general manager of the fleet corpora
ton, asking that the price be reduced.
They were returned to Mr.. Denman,
providing steel at the lower price.
Establishes a Price.
Signing Of the contracts not only
stills for the time what threatened to
result in a sharp controversy between
the shipping board and the emergency
feet corporation as to the price to be
paid for steel, but blishes a price
that will stand until a final figure is
set
A final price will be determined by
the shipping board and the fleet cor
poration with the advice of the raw
materials committee of the council of
national defense. If the steel mills re-
fuse to furnish their product at the
price decided on the President will
be asked to exercise his power to
commander their output. If price
higher than Mondays base is fixed
the government will pay the differ
ence, if lower, the steel mills will re-
fund.
In a statement issued Mr.. Denman
declared he would not sign any con-
tracts at sos because it was absurd
for the government to pay the price
the navy was obtaining it at $50 less a
ton. The earlier contracts let at $95
were in cases where the yards already
had commitments for steel at that
figure and were signed before the
government had been given the power
to commander supplies.
Tries to Put Up Price.
Secretary Daniels said that the
coal operators proposed to furnish
navy coal at a rate of $2.95 ton at
the mine. The navy has been paying
$2.S8 ton delivered. The secretary
directed the companies to ship imme
diately, the orders being prorated
among the producers, agreeing to
pay a tentative price Of 1888 at the
mines pending a report from the fed |
eral trade commission If the commits
sion determines a higher rate is JUS
tilted because of increased cost of pro-
duction, the department will equalize
payments at the rate fixed. If 1888 is |
too high, however, payments on future
shipments will be curtailed to bring |
the entire purchase at the commits
sion's rate The 1888 rate is being ad-
vanced by the government ION ac-
count" at present.
Oil quotations submitted, Mr.. Dan
ie1s said, ranged from $1.58 to S1.86 |
a barrel, delivered at Port Arthur al
though the present rate is SO cents
barrel at that point. The department
the producers to fill it's or
ders for 50OOO,00O barrels, leaving the
question of price to be determined by
the trade commission.