The Bemidji daily pioneer., 1919-04-24
So Says George N. Peek, Chair
man Of the New Industrial
Board.
NOW Steel PRICE WAS CUT
Chiefs OF industry Called In by Peek
and Matter Is Finally Settled
No Government Control, but
Purely Voluntary
Arrangement.

Washington-"There is every rea-
son to expect lower food prices In
the relatively near future"
50 speaks George N. Peek, chair
man of the new industrial board OF
the department of commerce.
Peek describes the Industrial board
as "the doctor to American business"
He believes the patient should be
well on the way to recovery within
sixty to ninety days.
"And after six months Of conva-
lescing, American business should be
healthier and more prosperous than
ever," he asserts.
"Doctor" Peek Is now diagnosing
the ailments OF the industries which
produce the basic necessities, such as
steel. coal, lumber. brick and build
ing materials. Already he and his as
sistants have brought about reduc-
ton of 10 to Is per cent In the prices
of steel. When the prices Of these
commodities have been brought down,
then the board will 60 after food
prices.
How the System Worka
There's no government control about
#; it's purely voluntary arrange
ment.
Here's about the way It works.
not so informally perhaps. but along
these general lines:
Down In the wood-and-paper build
ing where the council of national de-
Tense has given quarters to the indus
trial board there's committee room,
with long, plain table and few
plain chairs.
Into this room Chairman Peek calls
Judge Gary Of the United States Steel
corporation, Charles II. Schwab Of
Bethlehem Steel and other steel mag
mates. They all come willingly.
"Now, judge" says Chairman Peek.
."You know darn well steel prices are
too high. Nobody's buying any steel
because they can't afford 1t. Now 1t
seems to me it would pay you to cut
the price, even II you do lose little
by 1t. so that people would buy. What
do you say?"
'Sure." says Judge Gary. fiickins
the ashes off his cigar. I'm willing.
I'll cut prices 10 per cent, if that suits
the rest of you
That's all right" says Charlie
Schwab. "Rut think some things
could be cut Is per cent"
That's too much" says some other
magnate II think II per cent would
be better
So they agree on IL per cent. Then
they take pad Of paper and pencil
and figure out just what they'll charge
for vur,ous commodities. This sched.
uie Is put into shape. and they all
sign an agreement not to charge more
than It says they'll chnrge--nnd there
you are!
One Of the best things about this
new and novel method OF price fixing
is that labor is perfectly protected.
The Industrial board looks after that.
IT will permit no cut In prices that
will give the employers chance to
cut wages. So long as the cost OF
living remains high. wages must re-
main high. the bonrd holds SO that
the living standard shall not be low
cred.
Business to Bear Shock.
The theory underlying the whole ar
rangcment Is that big business. still
holding its profits made during the
war, is in a far better position to
stand the first shock Of reimbursement
than is the American workingman.
mo one dares buy until prices fall.
aud even then everybody will wait TO
see how far they fall" says Peek.
"1ndivdual action in lowering selling
prices Is therefore long drawn out and
unecicntfir. II renders the market
unstable and dangerous.
"'y sane and tenn perate action all
this can be avoided"