Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-04-11
STEEL PRICES
ARE FORMALLY
TURNED DOWN
Hines Refuses to Change
Opinion After Confer
.ence with Peek.

washington, April 10.-Acceptance
py inc Fail a Administration OF the
steel prices agreed upon by the rep
presentatlves of the industry and the
department Of Commences industrial
eoard was definitely and formally re-
IEsed today by Directors General
lines. The refusal was announced
anter Mr. Hines had confer red with
Snalrman George N. Peek OF the
The director-generars decision. an
nounced as final, was based on. the
JErounds hat the prices as agreed up
on are too high; that the Industrial
board lis without power to impose
mem upon the Railroad Administra-
IlonS and that the return of all prices
10 normal will be seriously retarded
~ the approval by q governmental
purchasing agency Of prices which 1t
deems excessive"
Chairman Peek Of the industrial,
BOARD let it be known after his con-
ference; with Director General Hines
mat he would present the questions
involved in the controversy with the
railroad Administration t. President
Wilson. and would ask the President
10 sustain the action Of the board.
Views. Unchanged.
After consideration of the steel
n iron prices proposed by the in
dustrial board" said Mr.. Hines state
ment, 81 am still of the opinion that
those prices are too high and there
fore that. the Railroad Administration
cannot, approve them as being reason
able prices.
"ThesfRailroad Administration will
continue to make purchases on the
best terms obtainable by a fair and
Just method, with full recognition OF
the principle that a government
agency with large purchasing power
must be particularly careful not ever
: to attempt action which could be re.
garded as oppressive.
%TheFobject Of the Railroad Admin
lstration has been to obtain a fair and
reasonable price level, 1t has never
,, lower issprice level than the general
If the industrial board can assist
IN bringing about levels Of prices al
which the Railroad Administration
will feel justified in buying it's coop,
Grafton will be welcomed.
, Excessive Price Harmful.
I'm the newspaper discussions OF
this matter the suggestion has al
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 estab.
lishment of a price for this purpose il
more important than the intrinsic rea.
sonableness of the price itself. ]. can.
not agree with this principle. I am
alive tosthe desirability of stimulating
business in every reasonable way. blu,
believe in the long that the endorse.
mspt by the government purchasing
agency of an excessive price level
would be. harmful to the public inter.
est and*would not bring about conf.
dence, and that the'e end sought to be
obtained will come only by reaching 9
price lsvel@ which the public Itself
shall consider to be reasonable.
II believe n Of the. greatest prob
lens tR&t c%onfronts this country II
that If eating prices back to a. reason.
able level and I believe progress ir
that direction will be retarded blythe
approval by q governmental purchas'
ing agency Of prices which 1t deem.
excessive"
Explaining that the Railroad Ad'