Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-04-04
HINES ENDANGERS
WHOLE PROGRAM
OF LOWER PRICES
Action Of Rail Head in Refus-
ing Steel Schedule Will
Throw Scheme of Price,
Fixing Up to Wilson

WASHINGTON, April S.-The
whole program Of lower prices,
through agreements between indus
tries and the government industrial
board, has been thrown into discard
as the result of the refusal of rail-
road administration to accept the
boards prices for it's purchases.
Only President Wilson can save
the situation. it is now, believed.
He has been cabled a full report
of the difficulty, and has been ask
cd to give direct orders as TO
whether the view of the board or
Director General Hines shall pre-
vail. The board was organized with
the express approval OF the presi-
dent.
= Recommitment of the steel prices
previously agreed upon to the board
for further conferences with the
railroad administration, may have a
disturbing effect on business con-
ditions. members of the board fear.
This, action was decided on at a
five-hour conference of government
officials yesterday after Hines re-
fused to change his attitude. Near
ly all the prices already have been
put into effect by the industry.
Another Conference
With Unemployment increasing
throughout the country, members Oh
the board believe industrial chaos
will follow the present business
| stagnatlon unless lower prices are
agreed upon and stabilized.
The view OF the railroad admin
istration is that prices can be fore
ed lower than, those of the indue-
trial board. The board claims that
return to pre-war levels can not be
expected with the present high
wages which they are opposed 10
reducing. Railroad wages are great
ly increased, and members OF the
board point out it is unfair for the
railroad administration to try TOR
extremely low price ievels, when it
is itself a big factor in holding VI
wages.
means another conference with the
steel kings" The steel prices
agreed upon were determined after
a hong conference, and Judge E. h
Gary declared they were the lowest
that could be expected for a year.
chaos in the program outlined by
the Industrial board, it's members
say. But the director general bat
tied against the combined arguments
of fourteen other conferees through,
out the meeting yesterday. and did
not bulge. He was quoted as hay
ing said in emphatic terms that the
railroad administration deemed it.
self capable of managing it's OWL
affairs and .purposed to obtain the
best prices it could.
In official circles here. resigna-
tions were believed possible as 6
result Of yesterdays bitter fight
George N. Peek, chairman. and w
both we're said to be Dissatisfied
with the trend of events" and haC
expressed the desire to throw of
the burden. Neither would common
| on the report.
The controversy had it's origin il
the steel prices but officials, botf
Of the railroad administration anC
the conference board hoped to- ne
gotiate an amicable settlement
Meantime:. the question of coal price:
arose, This brought a sudden in
| dication from railroad administra
! ton officials that they would not &C
| cept those either. Secretary Red
field, father of the conference board
| plan for stabilized prices, then me
cuss the problems it faced. Mem
bers of the board after that meet
ing determined, it was Officially
stated, to force a showdown. Sec
rotary Glass was appealed to. a
the ranking cabinet member, tt
| call the conference yesterday.
! It was evident that the coal price
question soon was sidetracked after
the opponents met. Participants said
since the fight was Ito determine
| what could and what could not be
! done" the stel schedule was taken uE
as concrete point around which the
argument might center.
Officials expressed the opinion. aft
err the meeting, that the influence OF
| the board on the industrial situation
generally had been greatly impaired
! by Hines refusal to obey the price
arrangement. They pointed out that
the prices agreed upon between the
| board and representatives of the
! steel interests were lower than those
! paid by the railroad administration
| But the railroad administration, OF
| ficials contended they still lcould be
! lower and would sign no truce under
the present price settlement.
Hines Is FIRM
Charges that he had wrought havoc
with the whole plan to aid indus
try" apparently did not cause Hines
! to change his views. He was said to
| have advanced the counter charge
! that throughout the war the railroad
/ administration had paid higher prices
than it would have been forced to pay
if permitted to exercise its own pur-
| chasing levers. In this connection
the director general was said to have
cited the cost Of coal last year, which
| former Director General McAdoo tes-
! titled before congressional com
mittee, was increased $4,000, 00t
| through the railroad administration 8
| agreement to stand by fuel admins
| tration prices.
At the railroad administration, the
! intention to remain free from al
iiances of any kind with the confer
ence board appeared determined Of
ficials generally were agreed that
| Hines had properly set out their opin-
ions in his reported statement that
| the railroad administration was. In
substance, it's own price fXer.