New-York tribune., 1919-04-12
Redfeld and Hines Both
Cable President That an
lmpasse Exists and Ask
Him to Decide Question
Cabinet Smash Is Hinted
Glass Backs Railway Head
and Entire Stabilning g
Programme Is at Stake
Neu York Tribuns
WdshtnDiOr, Bureau

WASHINGTON, April ll.--Secretary
OF Commerce Redield, after a con-
ference with Chairman Peek of the
War Industries Board, cabled Presi-
dent Wilson this afternoon state
ment of the impasse reached in the
controversy between the Board of In
dustrial Review and Walker D. Hines,
Director General of Railways, and
asked Mr.. Wilson to decide whether
the board should disband or remain
quiescent until the Presidents return
from France
Mr.. Hines cabled the President last
night but the nature of this com
munication was not disclosed.
1t Is thought that crisis has now
been reached in the Cabinet, as we'll
as in the matter Of the government s
Industrial readjustment policy. AS to
the latter, it is certain there will be
none until the President returns. If
there is one thereafter it may be at
tthe cost of Cabinet or executive
changes.
Red6eld Resignation Hinted
A statement made by Secretary Red
field this morning was interpreted by
some of those who heard it as pos
sibly meaning that in the eventuality
of not being supported by the Pres
ident he will tender his resignation.
It is considered that Mr. Hines can
hardly avoid rendering his resignation
If the President finally should decide
20 back Secretary Redheld. A dis
turbance in high executive offices, it
is deemed possible, might even include
Secretary Glass, who has committed
himself unequivocally to the support
of Mr.. Illness position.
The break between members of
President Wilson's official family is
considered the most serious that has
developed since the split between Sec
retary Baker and Secretary Lane over
the coal prices question in the spring
Of 1917
Redfeld's Position Stated
Mr. Redfield explained that mas
much as the railway administration s
course is at variance with the object
of the Industrial Board, which, as we'll
as the boards personnel, was approved
by the President, there is nothing for
him and the board to DO but submit
the controversy to the President and
remain inactive pending the latter S
decision.
Mr. Redfeld assumes that the Presi-
dents understanding OF the purpose
of the board is the same as his, but
admits that there is a possibility that
the President may have the same
understanding that Messrs. Glass and
Hines have.
In the course of this review Mr..
Redheld read the letter he wrote to
Mr.. Glass, after the conference that
! 11o lo%t ~
try TO reconcile the conflicting views
as TO the boards functions. H. de-
clined to give out the text of the letter
for publication at this time. # was
this statement which was taken TO i'm
ply Mr. Redheld's intention of resign.
ing in certain eventualities.
Entire Price System Involved
Mr. Redfeld made it plain that the
dispute with the railroad adminstra-
tion is not merely one of satisfactory
iron and steel prices, but involves the
price stabiizing principle. The former
phase of the controversy was, however
very fully stated. 1t involves not only
an irreconcilable difference as to the
prices themselves but also a question
of difference of understanding between
the members of the board and Mr.
Hines that virtually amounts to q
question of veracity.
In the letter to Secretary Glass, Mr.
Redfeld takes the position that the ex
action of the lowest possible rock
bottom" prices to the government
would be social and patriotic error
which would tend to force down wages
and entail higher prices to the public
The question of the legality of the
price stabilizing effort is discussed anc
the argument advanced that the nam
ing of prices that are compulsory on nc
one, and openly arrived at for the pur-
pose Of promoting commerce and in.
dustry in accordance with the functions
assigned to tne Department of Com
merce by. Congress, cannot be con-
strued as being In restraint Of trade.