Norwich bulletin., 1917-07-02
TRFOUBLE OVER REPUTATION
 OF COAL PRICE FIXING
By Secretary Baker-WiII be Discussed
 at Cabinet Meeting.

Washington, July 1.-Ofhclal Wash | ington awoke today to the possibilities | of trouble in Secretary Bakers repudi- atiOn of the coal price fixing arrange
 ment secured by Secretary Lane and l the coal production committee of the Council of National Defense by which | operators east of the Hiessippi River | agreed ito cut their mine prices today | froms1 to S per ton.
 So far there is no indication that | the situation has become acute or cabinet the president has kept around | him with few changes for four yea rs and a. half, but MT. Bakers public criticism of his colleagues course and his admOnition to the coal com
 mittee that it had exceeded it's powers, is regarded as certain to be discussed at length when the president meets his official family Tuesday.
 In the opinion of many officials the question may involve the entire make up of the Council of National De- fense and it's subordinate civilian com nittees of business men and echoes may be heard in legislation from con- sress. Some believe that general price fixing by government under law is not an impossibility as a result.
 The situation has brought to the front again reports of wide difference es among cabinet members and other government officials as to war purchasing policy.
 One element, said to include most
 
 councils committees, is for a purchas ing policy that will allow liberal profits to producers to stimulate pro- duction. These officials declare the government will obtain far better ser vice if the government does not try to drive it's bargains too hard
 Other officials believe the govern ment should bring every pressure to bear to obtain the lowest possible prices and some, it is said, are for comma n deering supplies.
 No government agency now has the power to fix prices either for the gov ernment or for the general public. If the government goes into the market for large purchases at low prices, it is pointed out, the private consumer will be forced to pay even higher prices than he now pays be- cause producers under no sort of re- straint will raise their prices to him to make up for their loss in selling to the governm ment. Some members of the commission are for legislation to meet this difficulty.
 Saving of s2oo, COG, 900 to Public.
 In making the arrangement with the coal men the interior department pointed out that 1t would mean if it stood for d year a saving Of nearly s2OO. 900, ,000 to the consuming indus tries and the public.
 The situation now existing probably will serve to hasten the movement to rearrange the committee system of the defense council, which contem- plates establishment of a purchasing office for government supplies. One thing that has delayed this reorgani- zation, it is understood, is the differ ence of opinion to how far the gov ernment should go in it's efforts to re- duce prices to consumers generally.
 Those in authority who have not ap- proved the action of Secretary Lane are understood to feel that the only way such a price-hxing plan can be made work equitably for the govern ment is first to have the cost of pro- duction ascertained by some capable government agency, probably the fed eral trade commission, and base prices on these costs. They realize that such investigations into the costs of fuel, oil, iron ore, cement and many other raw materials which the gov ernment needs for war purposes, will take some time but are inclined to the view that 1t would be better for the president to exercise such power as the war and navy departments have to commander commodities and let investigation disclose what war profits the producing industries are getting the belief that prices to the public will then adjust themselves whether there has been legislation or not
 New Record for Coal Production.
 An interior department statement tonight announced that new record for coal production was set for the first six months of this year. fully 270, 0,000, 900 tons of bituminous coal being produced since January l, thus exceeding the output of the first six months of last year by about twenty million tons Even better news" the statement adds, 'is that the limit has not vet been reached, for, as the rail- roads are able to work out to better advantage the problem of car supply and give to the mines greater facili- ties for transporting their production to market, the supply of coal that reaches the consumer will be in steadily increasing quantities"
 Demands for wage increases made on behalf of the 35,000 bar iron work l CTS in middle western plants were de-