Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-04-11

statement by Mr.. Hines, 81 am still
of opinion that those prices are too
high and therefore that the railroad
administration cannot approve them
as being reasonable prices.
ITO the extent that the railroad
administration finds it necessary to
make purchases it will continue to
make them on the best terms OBJ
tainable by fair and just methods,
with full recognition of the principle
that government agency with large
purchasing power must be particu-
larly careful not even to attempt
action which would be regarded as
oppressive.
THE object of the railroad admin
istration throughout has been to OBJ
tain a fair and reasonable price level.
1t has never contemplated that it
should get lower price level than
the general public.
IF the industrial board can as
sist in bringing about levels of prices
at which the railroad administration
Will feel justified in buying its CO.
operation will be welcomed.
High Prices Harmful
I'm the newspaper discussions Of
this matter the suggestion has at
times occurred that the principal
thing is to establish some price
which the government will endorse
to the end that the public will begin
buying at that price and that the
mere establishment OF a price for
this purpose is more important than
the intrinsic reasonableness of the
price itself. | cannot agree with
this principle. / am keenly alive
TO the great desirability of stimulat-
ing business in every reasonable way,
but l believe in the long run that
the endorsement by a government
purchasing agency of an excessive
price level would be harmful to the
public interest and would not bring
about confidence, and that the end
sought to be obtained will come only
by reaching a price level which the
public itself shall consider to be
reasonable.
Il believe one Of the greatest prob
lens that confronts this country is
that of getting prices back to
reasonable level and 1 believe prog
ress in that direction will be seri-
ously retarded by the approval OF a
governm entail purchasing agency OF
prices which it deems excessive"
Reviews Negotiations
Recounting the history of the nego-
tiations, Mr.. Hines stated that his
w
Robert S. Lovett, and Henry Wal
ters, members of the railroad ad-
ministration's advisory committee on
purchases, 7. G. Powell, the rail-
road administrators representative
in the negotiations, Henry 3. Spen-
Ger, director of the railroad admins
tration's division of purchases, and
Interstate Commerce Commissioner
McChord had agreed unanimously
that the industrial boards steel
prices were too high. The advisers
conferences yesterday in New York
with representatives of the steel in
dustry, Mr.. Hines said.
Chairman Peek, of the board last
night issued a statement in part as
follows
The director general of railroads
has to-day given to the press a state
ment definitely refusing to accept the
prices on steel approved by the in
dustrial board as representing fair
prices for public buying. This state
ment discloses what has already been
developed in repeated conferences
with the railroad administration,
that the reasons for the director gen.
erals refusal are, first that he denies
the right of the industrial board to
impose price upon the railroad ad-
ministration, and second, that he is
of the opinion that the prices arc
too high
The public must be informed of
the magnitude of the solemn respon-
sibllity assumed by the director gen.
eral in this important decision.
THE industrial board was formed
to carry out a perfectly defined in
dustrial policy to which the govern
ment, represented by the President
the Cabinet and the director general
was fully committed. =
ITO the complete success of this
plan. however, there was one abso-
lutte essential, that the governmental
departments should express the con-
fidence of the government in the ex-
ecution of this most important policy.
AT this late date the execution
OF the plan this important essential
to its success has been denied by the
director general of railroads, and bv
that denial the labor of the industrial
board is set at naught and the gov
ernment is exhibited as setting up
an industrial policy with one hand
and destroying it with the other.
"Presuming the government to
have been committed to this import
that the railroad administration is
under a powerful, if not a compelling
obligation, either to have the gov
ernment policy abandoned by the
same source that announced it and
to assume full responsibility for the
inevitable effect of such q step, or to
support the policy. or to demonstrate
that the industrial board has failed
in its function and that prices an
nounced by the board are not fair.
This brings us to the director gen.
erals reason that i'm his opinion the
prices are too high The significance
of this expression cannot be over
looked.
"A representative of the railroad
administration is member and a
part OF the board. Contrary to Mr..
Hines impression, this representa-
tive did not maintain that the prices
of steel generally were too high He
finally dissented only on the price of
rails. That is not, however, the cir
cumstance of greatest significance
which is that, throughout the dis
cussion from its earliest work to this
latest pronouncement, the figures
representing costs of production were
constantly available to the railroad
administrations representative and
basis upon which conclusions have
been reached has been repeatedly
represented to the advisers OF the
director general and to Mr.. Hines
himself.
Never have these figures been
contested, never has additional or