Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-07-03
COAL PRICE DEAL Is
TURNED DOWN BY
WAR DEPARTMENT
CONTINUED from Page IL

rags LII
mittee, dealing with price, either fixed
or maximum, for coal is clearly beyond
the legal power of the coal production
committee and of the council of ma
tional defense, from which the commit
tee derives whatever authority it has.
"As you are aware, the federal trade
commission has been directed by the
president to ascertain for his informa-
tion the costs involved in coal produce
ton. / am to some extent familiar
with the progress made by the commits
sion. The information | have from that
and other sources, / think, justifies me
in believing that the price of SO. sug-
gested or agreed on. as a maximum, is
an exorbtant, unjust and oppressive
price.
"The fact that these conferences were
attended by members of the federal
trade commission and by members of
the council of national defense, OF
course, adds nothing to their legal pow
ers, and j am sure that none of my as
sociates in the council will dissent from
the view / have herein expressed, both
on the limitation upon the powers of
the council and the coal production COM
mittee, and the effect OF the action al
legged to have been taken.
"I write this for the information of
the coal production committee and for
the guidance of all other subcommt-
tees of the council"
Mr.. Bakers letter caused much sur
prise among those officials who con-
sidered that the government had accom-
plished a notable achievement inducing
the coal operators to agree to price
far below that now effective.
Secretary Lane, a central figure In
the conference, and other officials de-
clined to comment, but it was pointed
out that Secretary Baker spoke only In
his capacity as head of the defense
council, and that he did not attempt
to repudiate the approval given the
operators new price scale by interior
department and federal trade commits
sion officials.
Several explanations for the letter
were suggested tonight among those
familiar with the situation. One vas
that the department of justice is anx-
ious that the fate of pending prosecu-
tions in New York against a few coal
operators be not jeopardized by the ac-
ton taken here regarding prices.
Those who take a different view be-
Iieve that in the near future there may
be an issue in the cabinet that will in
volve the very problem presented IN
this case. Some members of the cabi-
net are understood to feel that the best
way to handle big business interests
in war time is to appeal to their sense
of patriotism and fair play ana tnat
a little more than ordinary profit would
not be a bad thing if it would stlmu-
late production. Another group is I'M
derstood to feel that there must De
constant use of the great power OF the
government to coerce business interests
TO give the lowest possible prices.
How deep the difference goes has not
bacopoa annarent but 1t is possible that
a temperance Will lead 10 many ulA-
ficulties among officials.
PROSECUTION TO CONTINUE.
That the so-called voluntary reduction
in soft coal prices was in reality an at
tenopt by theoperators to forestall pros
ecution by Attorney General Gregory on
serious charges of price raising was
stated this afternoon by high govern
ment official.
The reduction from So to SO ton
made by the operators has been re-
iected by both the war and navy depart
ments and the prosecutions will con-
tinue in the New York courts.
Prices more closely related to actual
costs Of production will be fixed by the
Government, 1t was officially stated.
The department of justice is engaged
in the preliminary processes of prose-
cutting twenty-one of the operators VINO
were parties to the agreement
The department of justice also de-
clined to stop prosecution of twenty
one coal operators charged with Illegal
" combining to Sky-rocket prices
These operators were among those VINO
Yesterday agreed to set coal price ac-
ceptable to the government. They par
ticipated in the conferences with the
defense councils coal committee, despite