The sun., 1917-09-21
PRICE
FIXED FOR ALL
AT % IL CTS.
Nation, Allies and Public
Get Metal at 3 Cents Less
Than Market.
VOLUNTARY PACT IS MADE
Wilson Approves Action of
Conferees-Steel Next-Pom-
creme Hearings To-day.
VOLUNTARY PACT IS MADE
Special DespdtcA to TEE SuN.

WASHINGTON, Sept. 20.-A voluntary
agreement entered into by the copper
Industry Of the country and approved by
President Wilson, to-day fixed the price
Of copper at 231s cents a pound, Z. o. b.
New York. approximately three cents
under the present market quotation. The
agreement. framed by the copper pro-
ducers and the War Industries Board.
and effective for four months. calls for
q universal price. not only on Govern
ment contracts. but on all sales to the
European allies and the general public.
Omcial Washington was convinced to-
night that the copper agreement would
be reassuring to the business interests
OF the entire country, which have been
apprehensive Of drastic Government
action to control the prices Of basic ma
terials. It was indicated that the method
employed In fixing the copper price would
be followed In dealing with steel prices
and other raw material rates.
There has been grave concern among
the business interests lest the Govern
ment undertake by drastic means to re-
duce prices indiscriminately. The terms
Of the copper price announcement made
by the White House make 1t apparent
that the Administration will endeavor to
secure price fixing agreements with the
producers Of raw material. rather than
enforce arbitrary price reductions by
legal or administrative action.
Arbitrary Action Avoided.
Oficials in close touch with the price
fixing situation said that the President
would make eveV possible effort to Sc
cure cooperative agreements for price
reductions before resorting to arbitrary
Government regulations. This method
will be followed. II was stated. particu-
larly u regard to the price Of steel.
which is now under consideration.
1t Is expected that the copper agree
ment will have the effect Of convincing
the steel producers that they can best
serve their own interests by coopstating
with the War Industries Board and the
President.
A price OF 10 2-3 cents q pound on 4
purchase Of 45.o00.ooo pounds Of copper
was obtained by the Government through
voluntary agreement Of the copper
producers last March. The negotiations
for the purchase were conducted by Ber-
nard NJ. Baruch. head OF the committee
on raw materials Of the Council Of Ma
tional Defence. This Is the only pur-
chase made at that price.
Since this original arrangement all
purchases for the army and navy have
been made on an initial payment" basis.
that Ia. the Government has been paying
a nominal sum with the understanding
that later II would pay the difference
between that price and whatever should
be decided upon as fair and reasonable
price as the result of the recommenda-
tions OF the Federal Trade Commission.
This is the same basis as that employed
in recent purchases Of steel for the Gov
ernment.
At the time the price Of 16 2-3 cents
was given by the producers. spot copper
was quoted In the open market at 81
cents. the producers thus sacrificing
more than so per cent. Of the price GUS
tomarily obtained. The price was the
actual average selling price obtained by
the United Metals Selling Company. the
largest seller Of copper. over a period Of
ten years. 1907 to 1916 inclusive.
Round by Three Conditions.
The copper producers. under the
agreement, are bound by three condi-
tions. They will not reduce the wages
at present paid in the industry. They
will sell to the allies, the Government
and the public at the same fixed price
and will take the necessary precautions
to prevent copper from falling into
speculative hands where the price might
ert every effort to maintain the produc-
tion Of copper at the maximum of the
past for the period OF the war
In statement tonight the board
says:
The War Industries Board felt that
the maintenance OF the largest produc-
ton should be assured and that a re-
duction In wages should be avoided. Tho
stipulation that present wages shall not
he reduced compels the maintenance of
the highest wages ever paid In the in
dustry. which, without such stipulati
would. with the reduction made in the
price Of copper. he reduced under the
sliding scale so long In effect in the
copper mines.
within this year copper has sold as
high as 3S cents per pound. and the
market price would now be higher than
II Is had II not been well known for
some weeks that the Government would
Ak the price.
THE principal copper producers
throughout the country have evidenced an
admirable spirit and for weeks have
promptly supplied every request Of the
Government for copper without await
ing decision as to price and agreeing to
accept the price which the board should
ultimately fix. The proper departments
take over the mines and plants of any
producers who fail to conform to the
arrangement and price. II any such
there should be-"
While negotiating with the steel pro-
ducers and other raw material producers
the Administration proposes to press for
tho passage through Congress OF the
Pomerene bill comforting on the Presi-
dent power to control all raw material