New-York tribune., 1917-06-23
Baruch Protests Against De-
lays Due to Futile
Squabbling
Several Inquiries
Are Set on Foot
Trade Commission, |. c. {.
and Senate Each to
Take a Hand


Washington, June 22.-The govern
ment has taken up the question of fix
ing fair prices for steel, coal and
other war supplies.
Chairman Denman has asked the Fed
eral Trade Commission to inquire into
the costs of steel manufacture, and
General Goethals has requested the
steel committee OF the Council OF Ma
tional Defence to take the matter w
also.
On Tuesday the Senate Interstate
Commerce Commission will begin an
investigation of production prices of
coal. and will follow this with inquiries
into the costs of steel copper and other
basic materials.
Mr.. Denman has baked at paying
more than S56 ton for steel and re-
fused to sign contracts made by Gen
eral Goethals calling for steel at ten
tative price of s95. The contracts
have been made at tentative price o.
$50.
The question of price was gone over
bv General Goethals to-day with mem
bers of the steel committee. most OF
whom are steel manufacturers and
authorities.
To Protect Consumer
Mr.. Denman's action in requesting
tho trade commission TO determine steel
costs was explained to-
night in a statement saying the Snip
ming BOARD desired some established
Government agency TO arrive at costs,
so that individual consumers might De
protected against rise IN prices "nicn
would come when the government went
into the market for large quantities OIL
steel at low prices :.
At the Trade Commissions onlces IL
was said that the steel investigation
probably would be started immediateiy
and that cost facts developed propaoly
would be used as a basis for legislation
TO be asked protecting Individual con-
sumers from high prices. The commis-
sion has no power TO NIX prices eiIner
for the government or for an indlyld-
ual. but prices it recommended propa-
bly would be adopted by the fleet Cor-
poration as basis for bargaining Win
the steel plants.
Tentative Price of $50
II the steel plants decline to sell at
The Trade Commission figures, the gov
crnment, if It is determined 10 OBTAIN
steel at that price, can exercise the
mower TO commander. The navy no"
having S65 a ton for steel, also has the
power to commander under the ma
tional defence act.
II is considered unlikely that the
President at this time will grant elther
Mr.. Denman or General Goetnais poG-
or to commander supplies for bulld,
in, tho merchant feet. Contracts VIII
10 he signed at 500 as ten
tative steel price. c,.
Some members of the Snlppihg
Board. including Mr.. Denman, are i9r
Communicating steel II tne lrsue
Commission price is decIined by .mU
steel nlants. General Goethals saw
PrpSl0eDL w llSOU AOTNNy'
clined TO make any statement.
Buying Committees Suggested
Confusion over purchasing for the
government, duplication OF eHort anu
VARYING prices paid by dihereht gov
ernment departments for supplies may
hiring, it is said tonight, rearrahee.
ment of committees OF the Oouncii Vi
National Defence and creation oi Du!
ing commissioners. with sole RESPONSE
bility in purchasing ,,
Under this arrangement, Bernard
por,,cb chairman of the councils COM
r,ittee on raw supplies, probably would
hncon,e buver OF raw materials, and
Julius Rosenwald. chairman OF the
committee on supplies, would purennase
6 Snisbed products. Either could call on
.ha Trade Commission or any other
agency for aid in determin-
ing costs.
Mr.. Baruch. who negotiated arrange
uents with producers through which
+bo Government has obtained sdvan-
taoeous prices for many raw materials,
bas no sympathy with disputes pc
tween officials as TO the prices at which
steel should be furnished for ship
building.
Wants Material Quickly
"Winning of the war is all that
counts" he said tonight. Materials
sbonld be bought at the lowest price
nossible with full production. IL is OF
70 v.Iue TO cut costs if output is re-
dvced below the need The thing most
irnortant is TO get materials for ship
bmildinr and get them quickly. We
must get busy and give some one au-
thority to act. Squsbbles over prices
between people without authority 70
buy or sell are idle
Coal will be the first commodity
taken up next Tuesday at the inquiry
Of the Senate's Interstate Commerce
Committee.
chairman Newlands explained that
as present legislation contemplates con,
troll only of food, the committee Will
consider whether such control snould
be extended TO coal, iron, steel, their !
products and other raw materials, as
we'll AS their transportation.
Senator Newlands issued this state
The abnormal conditions created by
the war have disturbed price levels
,vbich had hitherto been adjusted by
II had been demonstrated
that competition was powerless 10 keep
prices of the basic materials at the nor.
nal level. that the result of the law of
supply and demand had been that an
enormous demand had been precipi-
tateG upon a limited supply, and that
thus there was no limit 10 which the
prices might not soar.
producers may rest assured that no
action will be taken which would injure
or impair their industries. but only
such action as would prevent abnormal
prices arising from an abnormal de-