The sun., 1919-04-12
PRICES DISPUTE Is
PUT UP TO WILSON
Industries Board to Halt "Sta-
bilizing" Work and Hines
Stands Pat.
MESSAGES GO TO PARIS
Railroad Chief Reiterates His
Determination Not to Ac-
cept Dictation.
MESSAGES GO TO PARIS
Special p.spateA TO Tn, SOC.

dent answers or until, his return the
Board will not proceed with price stabil-
king in regard to lumber or other pro-
ducts or commodities until its status
has been undetermined by the President.
An announcement to this effect was
made to-day by Secretary OF Commerce
Recfeld. who initiated the Industrial
Board and the price sterilization pro-
granme.
The Secretary and Chairman Peek of
the board Joined In q cable to the
President following a conference in
which they were advised by Assistant
Secretary of Commerce Sweet and Lee
Thurman. solicitor for the Department.
This action followed the decisive an
nsuncement by Director General Hines
that he would not accept the boards
action with respect to steal prices. Ne
gotiations between the railroad admin
istration and the board are definitely
OF Both sides issued long public state
ments to-day defending their positions.
It was pointed out to-day that the
President has before him the Arguments
OF both sides. to the controversy. the
Industrial Board having cabled on March
81 and the railroad administration on
the following day. The President has
waited for a harmonixing Of these views.
Await Action Of President.
The President again has been asked
for decision. Il II said, because he IL
tho creator Of the board and furnished
ths funds for it, operation and only he
csn accept the resignation Of the board
OF Its SaaG>has2 These designations will
be snea. Il IS understood. II the Presi-
dent Is disposed to back the Director
General Tho Industrial Board and the
Secretary OF Commerce are confident
that II ne does not he will issue definite
I'M - - 80
tia Director General 70 accept the
Boards action.
Meanwhile ths fight 10 getting warm
81. Secretary Rsdfsld stated to-day
that there was the testimony of six men
to one that the railroad administration
had Ia the Industrial Boards sessions
accepted all the steel prices with the
further. that when Director General
Hines had said tho prices wero too high
he had submitted the information upon
which they were determined and asked
Mr.. Hines II he had any information
that was contrary or would Justify lower
prices. To this no says he has re-
ceived no answer.
public must be informed OF the magni-
tude OF the solemn responsibility as
sumed by the Director General in his
important decision"
Tho Industrial Board" he says. was
formed TO carry out q perfectly defined
industrial policy to which the Govern
ment represented by the President, the
Cabinet and the Director-9eneral. was
fully. committed" He declares there Is
no ambiguity in the policy or the per-
Torrance under It but that At this late
date the important essential to the sue
cess of the plan has been denied by the
Director General, and the Government Is
exhibited as setting up an Industrial pol
icy with one hand and destroying It with
the other.
Asks Hines to show Cause.
Mr.. Peek puts It up to Mr.. Hines to
hsve the President abandon the policy
set UP for him by the board and to as
sumo full responsibility. or to support
the policy or 10 demonstrate that the
Industrial Board has failed To this
Mr.. Hines replies in part:
Mr.. Peek says the Government has
set up an industrial policy with ono hand
and torn II down with tho other. The
fact is the industrial policy which has
been interfered with is one which was
not set up by the Government but ap-
pears through some misconception to
have been initiated by the Industrial
Board itself. The policy authorized by
the Government was the policy Of estab-
irillIlS WHICH WOuiu On
deavor to bring Government purchasing
agencies. including the Railroad Admin
istraton, and producers Of certain COM
modities together by voluntary action
on reduced prices at which the Govern
ment purchasing agencies. including the
Railroad Administration, would be 1usti-
ned in buying freely.
"Mr. Peek instead of attempting to
carry out this specific policy entered, de-
y,,ff he lot iafv
LITIGATION, upon a very different policy of
fixing prices. with q virtual insistence
that the Railroad Administration must
buy at those prices regardless OF Its
Judgment
Further. his COMMITTEES even pro-
posed the prices as being prices below
which the general public ought not TO
expect to buy during--the rest OF this
calendar year. His real cause of
chagrin at tho present time IL that the
policy thus set up without Government
authority is not supported by tho Rail-
road Administration as TO steel prices
when the Railroad Administration lie
convinced that those prices are ex-
cessive.
Say Nation Is Not Alarmed.
mir. Peek also processes great alarm
at the consequence that will result from
the steel interests OF the country being
subjected to the monopoli6tfc buying
power of the Railroad Administration.
II am not mistaken one of the gravest
causes OF concern to the people OF
this country for many years has been
The persistent suspicion that the coun-
try was subjected TO the menace of a
monopolistio selling power on tho part
of the steel interests and therefore
do not believe the country will share
Mr.. Peek's alarm that the Railroad
Administrators purchasing power OF
steel will be pretudicial to tho public
interest.
"I believe tho same considerations will
keep the public from being alarmed by
Mr.. Perks suggestion that all railroad
purchasesApf steel will be thrown into
q monopoly OF powerful producers
81 have already made II clear that
the Railroad Administration will make
purchases on the best terms obtainable
by fair and Just methods with full
recognition of the principle that a Gov
eminent agency with large purchasing
power must be particularly careful not
even to attempt action which would be
regarded as oppressive.
'rrhe carrying out OF this policy VIII
not justify reductions In wages as MT
Peek indicates nor increasing prices
10 the public On the contrary the
public will greatly benefit by the Rail
road Administrations refusal to APP
prove these unreasonably high prices
Five Cleveland Plants Close.
A..uf - Uiye nia uts CON.