The Birmingham age-herald., 1917-07-01
SECRETARY BAKER
 REPUDIATES COAL
 PRICE AGREEMENT
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 ment reached at the conferences.
 His letter to MT. Clifford said
 My attention has been called through the newspapers to the action reported to have been taken at Washington, D. C., during the past week by the so-called committee on coal production of the council of national defense, in co-opera- tion with certain coal producers and rep resentatives If coal mining enterprises with regard to the price of bituminous and anthracite coal.
 'The facts seem to be that the coal production committee invited to Wash ington various coal operators and ar ranged conferences between them, mem- b.rs of the coal production committee and members of the federal trade com nission leading to the adoption of resolu- tiois in favor of an early and accurate determination of the costs involved in the production of bituminous and anthra- cite coal, as a basis for some future ac- tion by some official agency or the gov errment in fixing fair and just prices for these products, should any such agency be given power to do so. Pending such an entertainment of costs, this meeting seems to have adopted a resolution whereby the operators present agreed to Sell bituminous coal at a price not higher than $3 per ton, and that this ob- ligation should remain in force until some such action had been taken by an au- thorized governmental agency.
 PUBLIC MISLED
 The color which has been given this meeting and this resolution in the news papers may well mislead the public into believing that the council of national defense has either undertaken itself to fix the price of coal, or to sanction l.s being fixed by the coal production com mtte, or that committee in conjunction with the coal operators
 'l, therefore, as president of the coun- cil of national defense write this to say that the council of national defense has no legal power, and claims no legal pow er, either to fix the price of coal, or to fix maximum price for coal, or any other product The coal production com rnittee is d subordinate committee of the council of national defense, purely advisory in it's character, formed for the purpose of advising the council as to steps which might De recommended lead- ing to a stimulation of production and distribution of coal. No power has been even attempted to be delegated to it to consider or deal with the question of price, and any action taken by that com mittee, or sanctioned by that commit tee, dealing with price. either fixed maximum, for coal, is clearly beyond the legal power of the coal production committee and of the council of national defense, from which the committee de- rives whatever authority it has
 PRICE TOO HIGH
 AS you are aware, the federal trade commission has been directed by the President to ascertain for his information the costs involved in coal production. l am to some extent familiar with the progress made by the commission. The inf a hat n6 sources, l think, jucstified me in believ- ing that the price of s. suggested, or agreed on, as a maximum. is an exorbi- tant unjust and oppressive price.
 "The fact that these conferences were attended by members of the federal trade commission and by members of the council of national defense, of course. adds nothing to their legal powers, and | am sure that none of my associates in the council will dissent from the view I have herein expressed, both on the linn nation upon the powers of the council and the coal production committee, and the effect of the action alleged to have been taken.
 T write this for the information of the guidance of all other subcommiitees of the council
 MUCH SURPRISE CAUSED
 MT. odkcI lcllcI CduSCo ihuSl prise among those officials who con- sidered that the government had ac- complished notable achievement in inducing the coal operators to agree to q price far below that now effect i've. Secretary Lane, a central figure in the conference. and other officials, declined to comment, but it was point ed out that Secretary Baker spoke only in his capacity as head of the defense council and that he did not attempt to repudiate the approval given the operators new price scale by interior department and federal trade commis- sion officials.
 Several explanations for the letter were suggested tonight among those familiar with the situation. One was that the department of justice Is anx- ious that the fate of the pending prosecutions in New York against q few coal operators be not jeoparGize1 by the action taken here regarding prices
 CABINET DIVIDED
 Those who take a different view be- lieve that in the near future thei e may be an issue in the cabinet that will involve the very problem present. ed in this case. Some members of the cabinet are understood to feel that .he best way to handle big business in- terests in war time is to appeal 70 their sense of patriotism and fair play and that little more than ordinary