The Birmingham age-herald., 1917-07-02
WASHINGTON FEARS TROUBLE WHEN BAKER REPUD|ATES COAL PRICE FIXING No Sign That Issue Is Acute, But It Will Receive
 Attention of the
 Cabinet
BAKERS CRITICISM OF
 CABINET COLLEAGUE
 CALLS FOR ACTION
Situation Brings to Front Differences Among Cab inet Members on War
 Purchase Policy

LII CItdSc UuCy
 Washington, July 1.-Offic- ial Washington awakened to- day to the possibilities of trouble in Secretary Bakers s repudiation of the coal price fixing arrangement secured by Secretary 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 $1 to S5 per ton.
 So far there is no indication that the issue has become acute or that there will be split in the cabinet the Presi- dent has kept around him with few changes for four years and half, but MT. Bakers public criticism of his col leagues course and his admonition to the coal committee that it had exceeded its powers is regarded as certain to be dis cussed at length when the President meets his official family Tuesday
 In the opinion of many officials the question may involve the entire makeup of the council of national defense and it's subordinate civilian committees of busi- ness men, Some believed that general price fixing by government under law is not an impossibility as result
 The situation has brought to the front again reports of wide differences among cabinet members and other government officials as to war purchasing policy.
 One element, said to include most of the membership of the defense council s committees, is for a purchasing policy that will allow liberal profits to pro- ducers to stimulate production. These officials declare the government will ob- tain far better service if it does not try to drive its bargains too hard. They point to the coal price agreement as the proper way to arrive at buying arrange ments, particularly because through this plan the general public as well as the gov ernment enjoys the low prices obtained.
 OBTAIN LOWER PRICES
 Other officials believe the government should bring every pressure to bear to ob- tain the lowest possible prices and some, 1t is said, are for communicating sup pHes
 hoc f ', power to fix prices either for the govern ment or for the general public.
 The federal trade commission which is Investigating production and manufacture ing costs on basic materials takes the position that any prices agreed on be- tween the government and producers or fixed under the power to commander should go to the general public as well.
 If the government goes into the mar ket for large purchases at low prices, it is pointed out, the private consumer will be forced to pay even higher prices than he now pays because producers under nc sort of restraint will raise their prices to him to make up for their loss in sell ing to the government. Some members of the commission are for legislation to meet this difficulty In making the arrange ment with the coal men, the interior de- partment pointed out that it would mean if it stood for year saving of nearly s200, 000,OO0 to the consuming industries and the public.
 The situation now existing probably will serve to hasten the movement to rear range the committee system of the defense council, which contemplates establishment of purchasing office for government sup plies, One thing that has delayed this Reorganization it is understood, is the diff ference of opinion as to how far the gov j t&e, f~rfu tA VA duce prices to the consumer generally.
 ASCERTAIN COST PRODUCTION
 Those in authority who have not ap- proved the action of Secretary Lane are understood to feel that the only way such price fixing plan can work equit- ably for the government is first to have the cost of production ascertained by some capable government agency. prob- ably the federal trade commission, and base prices on these costs. They realize that such investigations into the costs O, coal fuel oil, iron ore, cement and many other raw materials which the govern ment needs for war purposes will take sometime, but are inclined to the view that it would be better for the present to exercise such power as the war and navy departments have to commander and let investigation disclose what war profits the producing industries are getting in the belief that prices to the public will then adjust themselves whether there has been legislation or not.
 An interior department statement to- night announced that new record for coal production was set for the first six months of this year, fully 270.O00,0 900 tons of bituminous coal being produced since January 1, thus exceeding the output of the first six months of last year by about 2O,oO0.O00 tons. Even better news. . the statement adds. Ifs that the limit has not yet been reached, for as the rail- roads are able to work out to better ad- vantage the problem of car supply prod uct to market. thes upply of coal that reaches the consumer will be in steadily