The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1917-07-02
CABINET SPLIT
NOW POSSIBLE
BAKERS COAL EDICT
CAUSES SENSATION
Rumors Gain Currency Of
Differences in President S
Official F Family:

WASHINGTON, July 1.-OfficIal
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 10
IS per ton.
So far there is no indication that
the issue has become acute or that
there will be a spit in the caDlnet the
President has kept around hlm Wllu
few changes for four years and d
half, but MIR. Bakers public criticism
Of his colleagues course and MS az.
montion to the coal committee lnal
it had exceeded its powers, is regard
ed as certain to be discussed at lengln
when tie President meets his off1clai
family, Tuesday.
In the opinion Of many officials the
question may involve the entire MAKE
up OF the Council OF National De-
-fense and its subordinate CIVILIAN
committees of business men,. ana
echoes may be heard in legislation
from congress. \ Some believe thal
general price fixing by the govern
mcnt under law is not an Impossible
ity as a result.
The situation has brought 10 the
front again reports OF wide differ
cnces among cabinet members anu
other government officials as 10 a
war purchasing policy.
One element. said 10 include most OF
the Nom bcrShip If the defeusr councils
committees. is for a purchasing policy
that will allow liberal profits to pro-
duccrs TO stimulate production. These
officjals declare rho government VIII
obtain far better service II the govern
ment docs not Try 10 drive its bargains
too hard. They point To the coal price
agreement AS tho proper WAY to hrriye
at buying ARRANGEMENTS. particularly
because through this plan the general
public us well as the government en-
Joys the low prices obtained.
Other officials believe tho govern
mcnt should bring, every pressure TO OBJ,
tain the lowest possible price. and
some. It Is said. ure for communicating 6
supplies.
No government agency now has the
power 10 fix prices either for the gov
crnmcnt or for lhc general public. The
federal trade commission. which Is In
vcstigatinG production and manufacture
ing costs on basic material. takes the
position that any prices agreed on be-
tween the government and producers
or fixed under the power 10 comman-
deer. should go 10 the general public
as we'll --. ......-.....
II tho government GAGS into the mark.
ct GorlarGc purchases nt low prices. !!
is pointed ou1 the private consumer VIII
he forced To pay even higher prices than
he now PAYS because producers under
no sort Of restraint will raise their
prices To him Ia max" up for their loss
In selling to tho government. Some
members Of tho commission arc for leg
islation IN meet this difficulty. ..
Meant Great Saving.
In making tho arrangement with the
coal men the intrri' + dcpartmHn pointed
ont TINT II would mean if IL stood for a
year II saving OF nearly $"o0,000.0o0 10
tho consuming industries and The public.
The situation now existing probably
will scryr TO hasten The movement Ia
rcarranEc thr committee system Of the
council. which cnntemplatcs eS-
tablishmant nf purchasing office for
government supplies. Ono thing thu;
has delayed tins ro0rERni2ntion. II Is un-
dcrstond is tho difference nf opinion as
to how far the government should go In
Its efforts - reduce prices TO consumers
generally.
Those In authority who have not APP
proved the action. Of Secretary Lane
are understood tn fccl that tho only way
such a price-fixing plnn can work
for tho government Is. first.
TO have the cost OF production aSccr-
tRincd by some capable government
agency, probably The federal trade COM
mission. and has" prices ON these costs.
They realize that such Investigations
into the costs Of coal. fuel OIL iron ore.
cement and many other raw materials
which the government needs for war
purposes. will take some time. but arc
Inclined tn the view! that II would be
better for the present to exercise sucf
power IS he war and navy departments
have to commander commodities and
let investigation disclose what war
profits tho producing industries are
getting in the belief that prices TO the
public will then adjust themselves
whether there has bcrn lecislat ion or
not. An int"rinr department statement
tonight announced that new record
for coal productions was set for the first
six months Of This ycur. fully cI0,000.-
0nR IONS Of bitunimnus coal being pro-
duccd since January !. thus exceeding
the output Of The first six months Of
last year by about "0.000000 tons.
H. nIu