Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-05-24
IS FORCED TO BUY
AT TRUSTS PRICE
Director General Hines Scath-
ingly Arraigns Methods of
Steel Companies.
FIGURES "CUT AND DRIED"
Railroad Administration Pur-
chascs 100000 Tons of Parts
to Meet Urgent Needs.
FIGURES "CUT AND DRIED"

WASHINGTON. May 23.-orders for
:0c.oo0 tons OF open-hearth rails have
been placed by the railroad adminis-
tration with six steel compa nies which.
IN respons. for request for bids,
quoted uniformly a price based on the
agreement between the steel interests
and the recently dissolved Industrial
board OF the Department OF Commerce.
DirectorGencral Hines, whose re-
tnsal to abide by the agreement was
an Influential factor in the dissolution
ot the Industrial board In announcing
the orders tonight. said they were
placed under protest" and with the
emphatic disapprovai OF the prices
tabiished."
That the bis steel compan mics OF the
country are in 'cut-and dried COM
policy OF 'one for ail and ali for one"
was intimated tonight by the director
general of railroads, in statement
because of immediate and urgent needs
70 purchase 10000 tons of steel rails at
the steel trusts own price"
In MS announcement Director-Cien
eral Hines brought ou, the fact that
after asking competitive. bids, which
aazeS Ia to ae and nd tSat Gas ,hsyp msse
, Identical. Not only were Mc dEds
inform unto n as TO priee. he stated, bu, they
prices approved by the industrial board
Of the Department OF Commerce.
Refused 10 Agree with Board.
This; This board was recently disbanded
George NJ. Peek. HsfrsE cfstrman Detwesn or zen
board. and Director Hines in wh;ns ins
Sf,sGre.arS Sc ret Redtield, OF the commerce
treasury GLASS were eventually In
FNoiSed. and which arose over the re-
s4Sa. sdS. 81, 9t Mr. Hines 70 abide by by the The
vas set by the board following nnna
'er,ence Win the steel men.
nc conid uhd' re-, t'me sowdr Mr. Hines Hines contended
system s. Of competitive bidding. toe
eSs-, eSs nias M came as boomerang. for
-. figure fixed by tho industria, ho,rI me
,rora Inc companies making the Bids
?, The Carnegie Steel Comnanv ,,o
= mos Steel Company. the TanHres.nee .ne
oai "a ,,i ana iron Company, all of which
are subsidiaries OF the United Steci
Iron Company the Be,hiebeme ana ana
company and the Lackawanna S,aa,
Company. S'eeI
olive" Emphatic DIsapprovaI.
i'irrs;or Hines saws:
The action was taken NOT o,,,
Withoit approval OF the prices bur for
tne ieaSons SHOWN below With en-
ni,at:: G.lai proyal ot the prices and and
established 'e"
- "That the action of these six steel
N,iPsii.fS III making uniform bids wa.
iaNen under the leadership OF he
United States Steel CORPORATION ia
ctear. Judge Gary, for the steel cor
poEatlon, announced publicly that the
stte! corporation would strictly main
fa'n the prices approved by the steel
:. These combinations are the ro-
sur or public acquiescence and yet All
me benefits of them go not TO public
but 10 the private owners The more
powerful! the combinations hecome the
more successful they are in keepins
UP prices. "e
Steel Corporations Policy,
{. The policy OF the steel corpora-
tion is TO maintain the present hirb
prices as business increases and costs
diminish.
.. II believe the prices are nor ontv
unfeasonanly high AT present, but viii
pecome progressively more unreasona-
PIE as business improves and conditions
become more nearly normal"
Director Hines added that "a seventh
steel company also bid
rms company was the Midvalc Steel
and Ordnance Company.
Their bid" commented rGrec,or
tiines, was $40 in excess of the uni
Iorm bid rom the other six He
pointed out this company showed on
al its steel products net earnings In
1915 OF S24.62 per ton. in 1917 of si4 %
per ton, and in 1918, OF s35I3 pe, ron
Senator UarrI. Swarm -