The sun., 1917-06-19
DANIELS FIXES
HIS0WN PRICES
Business Protests Arbitrary
Methods and Disregard
of Advice.

WASHINGTON, June 1s.-The manner
in which the Government apparently is
carrying out its policy Of fixing the
prices 1t will pay for huge orders Of
steel. oil. coal and other important COM
modities under the national defence act
country. according to reports reaching
Senators, Representatives, members OF
the Council Of National Defence and
Government officials There is develop
ing fear that the business interests
and the Industrial prosperity Of the ma
tlon sooner or later will become af-
fected. The whole subject is likely to
be threshed out soon at the Capitol.
The idea OF the Governments right
to regulate prices as a war time neces-
sity measure is nowhere questioned. but
the manner in which certain officials.
notably Secretary Of the Navy Daniels.
have FASTENED to apply arbitrary meth
DDS is regarded in a different light.
Secretary Daniels, who frankly regards
his efforts at forcing big business to ac-
cept his terms as an economic achieve
ment, reviewed to-day his campaign Of
forcing the steel companies to provide
| the Navy Department with steel for 2.s0
| cents pound. He explained that he
also had forced coal producers to pro-
vide 1.750.000 tons Of coal at sass q
ton at the mines and the oil companies
approximately 50,o00,0 900 barrels Of oil
at 50 cents 4 barrel.
b, In the cases Of coal and oil as in steel
there was radical disagreement between
| the producers and Mr.. Daniels as to
what constituted fair price. And in
each case Mr.. Daniels. armed with the
authority of the national defence act
giving him the right to comma ndeer such
supplies. has disposed of matters by
stating what the navy would pay and
ordering the manufacturers to deliver a,
that price.
In the case OF steel the price has been
definitely fxed at 80 cents a pound
This the steel interests and even mem
bers OF the Council OF National Defence
are understood to regard as too low. Ir
the case Of coal, Mr.. Daniels will have
the price regulated later by the Fedora
Trade Commission, the Navy Depart.
ment In the meantime paying sass q
tone at the mines with the understand.
Ing that this amount will be increased
or decreased pursuant to the Fedora
Trade Commissions report
Calls Prices Abnormal.
In refusing to pay the price suggested
by the coal producers at a recent con
ference Mr.. Daniels Is understood t.
have disregarded the advice Of the Goa
production committee Of the Council o.
National Defence, which advised Mr.
Daniels that the price suggested, $2.9i
at the mines, was a fair one on the basi.
Of prevailing market prices. Instead o.
being guided by the advice of thi
!. committee appointed to help the Gov
ernment. Mr.. Daniels has taken tn,
ground that present market prices wer,
abnormal and that the coal producer
were trying to reap large fortunes a
the expense Of the Government.
In the case Of oil somewhat simila
arrangement has been entered into a
Mr.. Daniels's command and the Fedora
Trade Commission will regulate the pric
while the Navy Department meanwhile
advances 80 cents a barrel. The pric
| which the producers asked was from
$1.5S to $l.s6 a barrel.
Fixed Prices Himself.
: THE SUN correspondent asked Secre
tary Daniels to-day whether the stee
manufacturers had for patriotic or othe
motives agreed to the price OF 80 cent
pound or whether he had forced ther
' to accept that price. Mr.. Daniels mad
1t clear that he and not the steel inter
ests had stipulated that price. ''It give
them a very good profit" he addet
This would seem to be In conflict wit
the statements OF the steel institut,