Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-07-02
Believe Secretary of Wars
Public Criticism viii Be
Discussed at Meeting of Of
ficiaI Family,
MAY INVOLVE COUNCIL
OF NATIONAL DEFENSE
Belief Is Held by Some That
General Price Fixing by Gov
eminent Is Not Impossible
as a Result.

Washington awakened today to the
possibilities of trouble in Secretary
Bakers reputation of the coal price
fixing arrangement secured by Sec
retary Lane and the coal production
committee of the council of national
defense by which operators east of the
Mississippi river agreed to cut their
mine prices today from 81 to SIS per
ton.
So far there is no indication that
the issue has becom acute or that
there will be a split In the cabinet the
president has kept around him with
few changes for four years and a half,
but Mr.. Bakers public criticism of
his colleagues course and his admo-
milton to the coal committee that it
had exceeded its powers, is regarded
as certain to be discussed at length
when the president meets with his Of
fcial family Tuesday. ..
In the opinion of many officials it
may involve the entire makeup of
the council of national defense and its
subordinate committees of business
men and echoes may be heard in leg
islation from congress. Some believe
that general price fixing by the gov
ernment under law is not impossibility
as result.
Differ as to Purchasing Policy.
The situation has brought to the
front reports Of wide differences
among cabinet members and other
government officials as to war pur-
chasing policy. One element, said to
include most of the membership of
the defense councils committees. is
for a purchasing policy that will al
low liberal profits to producers to
stimulate production. These officials
declare the government will obtain
far better service If it does not try to
drive its bargain too hard.
They point to the coal price agree
ment as the proper way to arrive at
buying arrangements, particularly be-
cause through this plan the general
public as well as the government en-
joys the low prices obtained.
Other officials believe the govern
ment should bring every pressure to
bear to obtain the lowest possible
prices and some, it Is said, are 10Y
communicating supplies.
Has No Price Fixing Power.
No government agency now has the
power TO fix prices either for the
government or for the general pub
lie. II the government goes into the
market for large purchases at low
prices 1t is pointed out the private
L..
higher prices than he now pays be-
cause producers, under no sort OF re-
straint, will raise their prices to make
up for their loss in selling to the
government.
In making the arrangement with
the coal men the interior department
pointed out that 1t would mean, L. II
stood for a year, a saving OF nearly
5000, 100000 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 purchasing
office for government supplies.
These in authority who have not
approved the action of Secretary Lane
are understood to feel that the only
way ga price fixing plan can work
eauitably for the government is first
to have the cost of production ascer-
tanned by some capable government
agency probably the federal trade
commission, and base prices on these
costs. They realize that such investi-
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 president to ex-
ercise such power as the war and
navy departments have to comman-
deer commodities and let investiga-
ton disclose what war profits the
producing industries are getting. in
the belief that prices to the public |
will then adjust themselves. whether
there has been legislation or not.
Record in 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
70,OO0,O tons Of bituminous coal
being produced since January 1, thus
exceeding the output of the first six |
mcnths of last year by about 10000
900 tons.
American Dollar Drops in China.
Annoy, China, July THE Ameri- /
cop doi1ar hera uour 10 t,orfh e. Sq |