Arizona republican., 1919-05-12
PEEK SAYS MAL|GN
 INFLUENCE iT WORK
 GLASS ANSWERS HIM
Former Chairman of Indus trial Board Says Some Unknown Power Stood Behind Effort-Secretarv Uses Harsh Words

WASHINGTON, May 11.-George \. Peek, chairman of the department of commences industrial board, which was dissolved last week, after a con- troyersy with the railroad administra- ton concerning steel prices, declared in a statement tonight that the public would demand an explanation of the wrecking. apparently on the obstinacy of a single individual of plan to make an immediate reduction in the cost of living of such an apparent na- tional value"
 T can only conjecture on eXplana- tion,'' said Mir. Peek. Throughout the baff1ing controversy, the board has found itself checked by forces in oppo- sition which ie could neither under stand, reason with or overcome, but which grew in strength until they forced the abandonment of the plan.
 Tn theory, the plan has been ap- proved almost unanimously by busi- ness men and associations and by edi- torial and press comment the country over; in practice, the plan has been proved by the order books of steel pro ducers and the buying revival which immediately followed the announce ment of steel prices and ceased imme- diately upon the railroad administra- tionis rejection of those prices.
 Tt is inconceivable that the railroad administration unsubstantial objec- tion was sufficient to justify the aban- donment of a policy of such impor- tance. Nor, toward the end, has the 1 director general been alone in thWarts ing the purpose of the board. The sec retar yof the treasury has taken a stand in direct contradiction to his | IVNnra 4I-~ creation of the board. The attorney | general has rendered an opinion that the plan of the board contravenes the 1 Sherman act, but the facts assumed as the basis of that opinion are so in- consistent with the actual course of conduct of the board as to render the opinion inapplicable, yet it has been used as a basis for the abandonment of the boards plan"
 After he had read the statement is sued by Chairman Peek, Secretary of the Treasury Carter Glass gave out Q | statement in which he took sharp issue with MT Peek. Concerning the fixing Of prices, he said his view was that the board was hopelessly committed tC an unsound and dangerous policy.
 Mir. Peek's references to his attitude in the controversy he disuposed of witf the declaration that the former haC 'persistently and consistently prac- ticed deception in nearly every public statement he has made"
 The industrial board. after confer. ence with the steel interests, bu against the express protest of the repre- sentative of the railroad administra ton, approved a scale of prices below which the industrial board announced c-IA
 during the year" the statement said
 The attempt thus made to fix mini mum prices for the public seemed tt me wholly indefensible and contrary t, Fundamental principles of economics of public policy and of the law. Surel, the healthy restoration of industria llfe and activity is not to be found il the perpetuation and exaggeration months after the cessation of hostili ties, If the artificial conditions durin, war times are still tolerated"