The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-03
HINES FIGHTS STEEL
PRICES; COAL NEXT


the Railroad Administration" making
II read:
THE matter was recommitted to
the board for further consideration
with the Railroad Administration
1t Is plain that Director General
Hines cannot be swayed in his decision
not to accept the steel prices approved.
The Government throughout the war
consistently has taken the position that
two prices cannot be named for the
Government and one for other purchas-
ers. because 1t would be unfair This
Issue was decided last summer In sim
liar row between the Railroad Admin
istration and the Fuel Administration
over railroad coal purchases.
The Fuel Administration fixed coal
prices and the National Coal Associa-
ton and the Fuel Administration de-
ma nded that the railroads pay the price
| that was fixed for every one else and
stop the alleged practice of using car
| supply as club to beat down prices.
| John SHELTON Williams, who was then
head of the division of purchases and
acting for Director General McAdoo,
| who was absent on a Liberty Loan tour,
| took the position that the railroads. as
| wholesale buyers. were entitled to bet
ter prices and that a different policy
would cost millions.
Won Lower General Price.
The matter was threshed out in
meeting of the War Council and finally
went TO the Cabinet and the President
| upon Mr.. McAdoo's return. A compro-
mise was effected whereby the Railroad
Administration accepted the common
price for all on the basis of prices
fixed on n basis that averaged to some
extent the railroad price and the price
to other purchasers. making a slightly
lower general price
A revival Of this old fight was largely
| instrumental in bringing to-days stormy
session. Fuel Administration price
regulations were withdrawn some time
ago. The Industrial Board was organ
lied and proceeded to reach an agree
ment on steel prices. bringing them down
considerably. Coal lumber and other
prices were next taken up and the coal
men wanted assurance of a continuance
ofs purchases by the Railroad Admins
tration at the price to the public.
Though no official statement has been
| made. II is evident that no assurance
was received.
The National Coal Association is
sued a statement attacking the Railroad
Administration and in effect intimating
a return TO the old policy. Henry B.
Spencer. new head of the purchase di-
vision, replied that the Railroad Admin
| istration would use its best Judgment
with respect to such purchases. Director
General Hines had just gone on a tour
to several regional headquarters.
II was stated to-day that Chairman
Peek and w. NJ. Ritter of the Industrial
Board went to Chicago to confer with
him. Mr.. Ritter demanding a show down
as to whether the price agreements made
by the Government were to stand or
were to be disregarded by another Gov
eminent agency. The conference IL is
understood. was not conclusive and II is
reported that Mr.. Hines then said lie
was not prepared to give decision.
Price Program in Danger.
Apparently efforts to settle the situa
ton failed, and the conference was
called to-day, II was understood. to take
up the question of railroad, coal and
steel purchases. Though frst hand or
official information cannot be had as &c
the progress of the conference, 1t IL un.
derstood that when the coal question
was preached Mr.. Hines stated that mat
ten was but Incidental, that the Railroad
Administration was not prepared to &C.
cept the agreed price upon steel. and that
that was the issue.
, Failure of future agreement would
seem to doom and cast into the discard
the entire programme OF price reduction
to bring about quick readjustment to &
peace basis Future agreements will bC
, difficult IL those on steel and coal ar,
not made effective.
When the armstice was signed th'
Railroad Administration was we'll up OF
: orders for equipment and rails How
r ever, large purchases of rails must soor
be made.
Throwing in OF these orders would NJ
Q doubt have a salubrious effect upon tn
I steel industry generally. but Director
= General Hines is apparently determine,
i not to put them in at the agreed prices
Lust how much lower the Drice must D