Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-07-03
COAL PRICE DEAL IS
TURNED DOWN BY
WAR DEPARTMENT
So-CaiIed Voluntary Reduction
Was Intended to FOrestaII
Prosecution on PriCe-RaiS-
ing Charge. Is Statement

WASHINGTON. June sO.-The gov
eminent today struck openly and with
what Is hoped TO be a knockout punch
at what officials tonight denounced as
attempts 20 grab extortiOnate profits
under the cloak OF patriotism"
Two blows were delivered.
The navy decided virtually 10 COM
msuieer fuel oil, gas oil, gasoline and
distiIIate required by the navy and to
be furnished as needed up TO September
90. the price TO be later determined on.
The second stroke was the declaration
that the eastern coal operators agree
ment~ TO furnish coal at IS per ton, as
announced yesterday. T. o. b. cars at the
mines. is extortionate-
Secretary Baker, as president Of the
Council of National Defense, repudiated
tonight an agreement fixing tentative
price of So a ton for bituminous coal
reached At a conference here Thursday
between coal producers. Secretary Lane.
a member OF the defense council. mem
bers OF the councils coal production
committee. and the federal trade COM
m Mission
Neither the council nor its commit
tees. Secretary Baker said in a letter
10 W s Clifford, Of the council, has
rover to fix prices He added that the
bituminOus coal is ''exorbitant, unjust
and oppressive"
NAVY NOT AFFECTED.
Secretary Daniels. another member Of
the council, earlier in the day said the
agreement would in no way affect coal
purchases for the navy. The navy, he
said. will continue 10 buy from the
mines at s2.SS a ton, leaving a price
10 be determined after the federal trade
commission has ascertained production
costs.
In his letter TO Mr. clifford, Mr.. Baker
asserted that he believed no members
Of the defense council disagreed with
him as TO the limitations on the powers
of the council and its committees and
as to the effect Of the action taken The
fact that the conferences were attend
ed by members of the council and OF
the trade commission, he declared, gave
no legality TO the agreement.
The price fixing agreement was
reached after 400 operators called here
by the coal production committee had
adopted resolutions authorizing THEM
committees TO give assent TO such max
fmum bituminous prices as might oe
named nv the secretary of the Interior
the federal trade commission and the
coal committee
Up To GOVERNMENT.
The resolution was reported by Trade
Commissioner Fort from a special COM
mittee In presenting il for adoption
NIr. Fort declared he believed ii was
entirely safe for the conference to adopt
and that any responsibility as to the
legality Of fixing prices was put on
The government and not on the opera-
Tors under The terms of the resolution
some operators had expressed a fear
that they might be prosecuted under
he antitrust laws IL they entered into
an agreement among themselves 10
lower prices
An official announcement MADE
through the public information commit
tee said that in the final conference
cost prices and other confidential inior-
nation was laid on the table and the
government representatives. acting as
JUDGES. decided what would be the
highest prices paid at the mines-the
prices 10 20 into effect July ] and to
remain in effect until Investigations
are made and other prices arranged
Secretary Baker tonight indicated
that as president Of the defense council
re had received no notification of the
arrang ement reached at the conferences.
His letter to Mr. Clifford said:
TENT OF LETTER
ny attention has been called
rrroueu ~ newspapers to the action
TeDO~ted 10 have been taken at WASH
irzton. y: -. during the past week by
the so-caIled committee on coal pro-
duction OF the council Of national de-
tense. in cooperation with certain coal
producers and representatives OF coal
mining enterprises. with regard 10 price
Of bituminous and anthracite coal
The facts seem TO be that the coal
orerators had arranged conferences De-
tween them, members OF the coal PRO-
ductfor committee and members OF the
the adoption Of resolutions in favor OF
an earIy accurate determination OF the
costs involved in the production or d.
luminous and anthracite coal. as a
ba.fs for some future action by some
official agency OF the government IN
fixing fair and just prices Tor these
PRODUCTS. should any such agency be
given power to do So Pending such
an ascart7furreut OF costs. this meeting
.ss,,s 70 have adopted a resolution
whereby the operators present agreed
tc sell Unanimous coal at price not
higher than 81 per ton. and that TINS
~b1Tratfou should remain In force until
some such action had been taken by
90, authorized government agency
The color which has been given this
meeting and this resolution I'm the news
,,snars nav well rnisIead the public into
ba1fey-sue that the council OF national
---1xe 7as es5aer undertaken itself 10
fix The price % coal or TO sanction It's
being Fixed by the coal production COM
,rs-tea or that committee in conjunc-
TON with the coal operators
therefore. as president OF the coun-
ell y. national defense, write TINS 10
70 s,,- fba- the council OF national defense
bs- no legal power and claims no legal
,ov-ar either 10 tx the price of coal or
20 fix a maximum price for coal, or
any other product. The coal production
-o-,,rsttee is A subordinate committee
of the council Of national defense. purely
advisory in rs character, formed Tor me
purpose OF advising the oouhch q - -
. ,,--f..r, might be recommended
t..Efrg In n stimulation OF production
and distribution Of coal No power mas
been even attempted by the delegates TO
II 10 consider or deal with the question
of price. and any action taken by tha'
committee. OF sanctioned by that COLI