Omaha daily bee., 1917-07-02

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 to buy
from the mines at S2.33 ton. leaving
a price to be determined after the
Federal Trade commission has as
certained productive costs.
In his letter to Mr.. Clifford. Mr..
Baker asserted that he believed no
members of the Defense Council dis
agree with him as to the limitations
on the powers of the Council and its
committees and as to the effects OF
the action taken.
The fact that the confeences were
attended by members OF the council
and of the Trade commission, he de-
clared, gave no legality to the agree
ment.
Result of Conference.
The price fixing agreement was re-
ported after 400 operators, called here
by the coal production committee,
had adopted resolutions authorizing
their committees, to give assent to
such maximum bituminous prices as
might be named by the secretary OF
the interior, the Federal Trade com-
mission and the coal committee.
The resolution was reported by
Trade Commissioner Fort from a
special committee. In presenting it
for adoption, Mr.. Fort declared he be-
1ieved it was entirely safe for the con-
ference to adopt and that any respon-
sibility as to the legality of fixing
prices was put on the government and
not on the operators, under the terms
OF the resolution. Some operators
had expressed fear that they might
be prosecuted under the antitrust
laws If they entered into an agree
ment among themselves to lower
prices.
Had Inside Information.
An official announcement made
through the public information COM
mittee said that in the final confer
ence cost prices and other conhden-
tial information 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 to go into effect
July |, and to remain in effect until
in yestigations are made and other
prices arranged.
Secretary Baker tonight indicated
- Ia nnEo n
Council. he had received no notihea.
ton of the arrangement reached al
The conferences
Bakers Letter to Clifford.
His letter to Mr.. Clifford said:
MY attention has been called
through the newspapers to the actor
reported to have been taken-at Wash
ington, D. c., during the last week by
the so-called committee on coal pro
dNction Of the Council of National De
tense, i'll cooperation with certain
coal producers and representatives o.
coal mining enterprises, with regart
to the price of bituminous and
anthracite coal
The facts seem TO be that the Goa
DrOuuCtlOn COtlinUlee HVlleu II
Washington various coal operators
and arranged conferences between
them, members OF the coal production
committee and members OF the fedora
trade commission. leading to tht
adoption OF resolutions in favor OF al
early and accurate determination o
the costs involved in the production
Of bituminous and anthracite coal, a
a basis for some future action by
some official agency of the govern
ment in fixing fair and just prices 70,
these products, should any suci
agency be given power to do so.
Should Remain in Force.
Pending such an ascertanment o
costs this meeting seems TO hav'
adopted aresolution whereby the op
orators present agreed to sell bitumin
Gus coal at a price no higher than S
per ton, and that this obligation
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