New-York tribune., 1917-07-01
War Secretary Calls Quota.
ton Of So a Ton at
Mine Outrageous
Denies Authority
OF Defence Council
Daniels Insists That He
Will Continue to Pay $2.33
for Fuel for the Navy

Washington. June Secretary
Baker. as president Of the Council. OF
National Defence, repudisted tonight
an agreement fixing a tentative price
Of 50 a ton for bituminous coal.
reached at a conference here Thursday
among producers, Secretary Lane.
member OF the Defence Council. mem.
bers of the councils coGl production
committee and the Federal Trade Com
mission.
Neither the council nor its commit
tees, Secretary Baker said in letter
to W. S. Clifford. of the council have
power TO fix prices. He added that the
price of 81 at the mines suggested for
bituminous coal is "exorbitant un.
just and oppressive
Secretary Daniels, another member
OF the council, earlier in day said the
agreement would in no way affect coal
purchases for the navy. The navy, he
said. will continue to buy from the
mines at S2.33 a ton, leaving a price
TO be determined after the Federal
Trade Commission has ascertained pro
duction costs.
In his letter TO Mr.. Clifford, Mr.. Baker
asserted that he believed no members
OF the Defence Council disagree with
him as to the limitations on the pow
ers of the council and its committees
and as TO the effect of the action
tssse. The fact that the conferences
were attended by members Of the coun.
Gil and OF the Trade Commission, he
declared, gave no legality to the agree.
ment.
Lane Remains Silent
Mr. Bakers letter caused much sur.
prise among those officials who CON
sidered that the government had ac-
complished a notable achievement in
inducing the coal operators to agree 10
a price far below that now effective.
Secretary Lane, a central figure in the
conference, and other officials declined
to comment, but it was pointed out
that Secretary Baker spoke only in h..
capacity as head OF the Defence Coun-
ell, and that he did not attempt 20 re-
pudlatc the approval given the opera
tors new price scale by the Interior
Department and Federal Trade Com.
mission 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 pending prosccu.
tIons in New York against a few coal
operators be not jeopardized by the ac.
tion taken here regarding prices. Those
who take different view believe tina,
in the near future there may be an
issue in the Cabinet that will involve
the very problem presented in thi.
case.
Some members OF the Cabinet are
understood TO feel that the best way
to handle big business interests in war
time is 70 appeal TO their sense Of
patriotism and fair play, and that
little more than ordinary profit would
not be bad thing If it would stimu-
late production. Another group is un-
derstood TO feel that there must be
constant power OF the great govern
ment to coerce business interests to
give the lowest possible prices.
How deep the difference goes has
not become apparent, but 1t is possible
that temperance will lead TO many
difficulties among officials.
Price Fixed at Conference
The prices fixing agreement was
reached after 400 operators, called
here by the coal production committee.
mad adopted resolutions authorizing
their committees 10 give assent 20 such
maximum bltuminous prices as might
be named by the Secretary Of the In
terror, the Federal Trade Commission
and the coal committee.
The resolution was reported by Trade
Commissioner Fort, from a special COM
mittee. Ia presenting it for adoption
Mr.. Fort declared he believed it was
entirely safe for the conference TO
adopt, and that any responsibility az
TO the legality of fixing prices was put
on the government and not on the
operators under the terms Of the reso-
luton. Some operators had expressed
fear that they might be prosecuted
under the antitrust laws il they en-
tered into an agreement among them
selves 10 lower prices.
An official announcement. made
through the public information com
mittee, said that in the final confer
ence cost prices and other confidential
information were laid on the table, and
the government representatives. acting
as judges, decided what would be the
highest prices paid at the mines. the
prices to so into effect July ] and TO
remain IN effect until Investigations
are made and other prices arranged
Baker Not Notified
Secretary Baker tonight indicated
shat as president Of the Defence Coun-
Gil he had received no notification Of
the arrangement reached at the con.
fcrences. His letter TO Mr.. Clifford
said:
"My attention has been called through
the newspapers 10 the action reported
TO have beeh taken at Washington dur
iaS the last week by the so-called COM