Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-07-02
COAL PRICE REPUTATION
MAY CAUSE CABINET SPLIT.
Bakers Public Criticism Of Lanes
Course Likely to Result in
Party Trouble.
SURE To COME UP ON TUESDAY
Question May Involve Entire Make.
Up Of Council Of National Defense
and It's Subordinate Civilian Conn
mittees, Also Purchasing Policy.
SURE TO COME UP ON TUESDAY
fey Associated Press. ]

tBy Associated Press.l
WASHINGTON. d. c., July 1.-Ohicial
Washington awakened to-day to the
Bakers reputation OF the coal-price-
fixing arrangement secured by Secre-
tary Lane and the coal production com
mittee OF the Council OF National De-
fcnsc. by which operators east Of the
Mississippi River agreed to cut their
mine prices from 81 TO IS per ton. So
far there are no indications that the
issue has become acute, or that there
will be split in the Cabinet the Presi-
dent has kept around him with few
changes for four years and half. but
Mr.. Bakers public criticism of his col
leagues course. and his admonition to
the coal committee that it had ex-
ceedcd Its powers. is regarded as Ger
tain to be discussed at length when
on Tuesday.
In the opinion Of many officials the
question may involve the entire make
up Of the Council OF National Defense
and its subordinate civilian committees
OF business men, and echoes may be
heard in legislation from Congress-
Some believed that general price fix
ing by the government under law may
possibly result
The situation has brought to the
front again reports OF wide differences
among Cabinet members and other gov
crnment officials as TO a war purchas-
ing policy.
DIFFERENCES IN OPINION
AS TO PURCHASING POLICY
One element. said to include most Of
the membership of the Defense Coun-
ellis committees, is for a purchasing
policy that will allow liberal profits TO
producers 10 stimulate production.
These officials declare the government
VIII obtain far better service If tho
government does not try TO drive it's
bargains too hard. They point to the
coal price agreement as the proper
way to arrive at buying arrangements
particularly because through this plan
the general public as we'll as the gov
ernment enjoys the low prices obtained.
should bring .very pressure to bear to
obtain the lowest possible prices, and
some. it Is said. are for commandcer-
ing supplies.
No government agency now has the
power TO fix prices, either for the gov
crnment or for the general public The
Federal Trade Commission. which is
Investigating production and manufac-
turing costs OF basic materials, takes
the position that any prices agree,
on between the government and pro-
ducers or fixed under the power to COM
mandeer should go to the general pub
lie as we'll.
If the government goes into the mar
ket for large purchases at low prices,
1t is pointed out. the private consumer
will be forced to pay even higher
prices than he now pays, because pro-
ducers under no sort OF restraint, will
raise their PRICES to him to make up
for their loss in selling to the govern
ment. Some members Of the commits
sion are for Legislation to meet this
difficulty. In making the arrangements
with the coal men, the Interior De-
partment pointed out that Il would
mean IL il stood for a year. a saw
ing of nearly s2o0.0Oo.o0o loss TO the
consuming Industries and to the public
MAY REARRANGE
COMMITTEE SYSTEM
The situation now existing probably
will serve to hasten the movement to
rearrange the committee system of the
Defense Council, which contemplates
establishment of purchasing office for
government supplies. One thing that
has delayed this reorganization, It is
declared. is the difference of opinion
as to how far the government should
go i'm it's efforts to reduce 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-fiX plan can work
equitably for the government. is first
to have the cost Of production ascer-
tanned by some capable government
agency. probably tho Federal Trade
Commission. and base prices on these
costs. They realize that such invcsti-
cations into the cost OF coal. fuel. oil.
iron ore, cement and many other raw
materials which the government needs
for war purposes will take some time.
but are inclined to the view that it
would be better for the present to exer-
else such power as the War and Navy
Departments have to commander COM
modities. and let investigation disclose
what war profits the producing indus
tries are getting, In tho belief that
prices to the public will then adjust
themselves. whether there has been leg