The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-04-11
STEEL PRICES
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(Couttnued Prom Page One)
| tude Of the railroad administration by
J which It was asserted. the government
IS exhibited as setting up an industrial
policy with one hand and destroying II
! with another" Chairman Peek warned
| against the railroad administrators OK.
| ercise Of its power Of 'monopolistic
buying Of rails. and declares that "the
director general must assume full re.
Sponsibility for all the results Of the
course he has chosen"
WASHINGTON. April 1o.-Acce7t-
; ance by the railroad administration of
| the steel prices agreed upon by the
representatives Of the industry and the
department Of commences industrial
| industrial board was definitely and for
maily refused today by Director ucr-
cral Hines. The refusal was announced
after Mr.. Hines had conferred with
Chairman George y. Peck of the board
The director generals decision as
final was based on the ground that the
prices as agreed upon are too high;
that the Industrial board IS wlthou.
road administration I'd that tho return
ously retarded by the approval by gov
Ornamental purchasing agencies of prices
Of which it seems excessive
Peck Will Appeal
Chairman Peck of the industrial
board. let it be known after his confer
cnce with Director Genera; -;lncs that
he would present the questions involved
in the controversy with the railroad
administration TO President Wilson an0
would ask the president TO sustain the
action Of the board.
after repeated consideration Of the
steel and iron prices proposed by. the
industrial board" said a statement by
Mr.. Hines. II am still of the opinion
that those prices arc too high. and there
fore that the railroad administration
cannot approve them as being reasona'
BILE prices.
ITO the extent that the railroad ad-
ministration finds 1t necessary to makS
purchases it will continue to make them
on the best terms obtainablc by fair
and just methods. with full rccogni-
ton Of the principle that government
egency with large purchasing power
must be particularly careful not even
to attempt action which could be re-
garded as oppressive
1.-THE object Of the railroad admins
tration throughout has been to obtain
a fair and reasonable price level. II
has never contemplated that it should
get a lower price level than the general
public
IF the industrial board can assist IT
bringing about levels Of prices at which
the railroad administration will fee
justified in buying its cooperation will
be welcomed.
PRINCIPLE Not Endorsed.
TN the newspaper discussions Of the
matter suggestion has at times occurred
that the principal thing is to establish
some price which the government vii
endorse to the end that the public will
begin buying ct that price. and that the
mere establishment OF a price for this
purpose Is more important than the IN
trinsic reasonablcncss Of the price It
self. I cannot agree with this principle
I am keenly alive to tho great desir'
ability of stimulating business in every
reasonable way. but I believe in tho
long run that the endorsement by gov
ernment purchasing agency Of an ex
cessive price level would be harmful. t
the public interest and would not brinf
about confidence, and that the enc
sought to be obtained will come only
| by reaching a price level which the pub
lie itself shall consider TO be reasonable
Il believe one Of the greatest prob
/ lens that confronts this country is thai
Of getting prices back to reasonable
! level and I believe progress in that al
rection will be seriously retarded by tht
! approval by governmental purchasing
| agency Of prices which 1t deems eHce5
| sive"
Can't Impose PHcos.
Explaining that the railroad admins
traceon had never sought TO give tho i'm
preston that It approved the stee
| prices, Mr.. Hines said:
1T has been perfectly clear to mt
| throughout the discussion Of this mat
ter and I think 1t is now generally un.
derstood that no power was conferred
| on the industrial board to impose an!
prices upon the railroad administration
but that It retained the power and also
was under a duty to exercise it's owr
judgment in respect to this important
matter. Throughout the discussion in
the industrial board itself. Mr.. T. G
Powell, the representative Of the rail
road administration. indicated that the
final approval Of any prices so far as
the railroad administration was con
ccrned, rested with the director general
himself Mr.. Powell during the discus
sion objected that not only. the prices
! on steel rails. but the prices generally
were unreasonably high and before Tho
committee announced its action he posi-
lively stated that the railroad admins
tratfon would not agree to buy at the
proposed prices"
Recounting the history Of the ncgotia.
lions. MI Hines stated that his coun-
sellers. John SHELTON Williams. Robert
8. Lovett and Henry walters. members
Of the railroad administrations advisory
committee on purchases. Mr.. Powell,
! Henry B. Spencer. director OF the rail-
road administratio advisory commit
tce on purchases and Interstate COM
merce Commissioner McChord had
agreed unanimously that the industrial
boards steel prices were TOO high. All
Of thcse advisers except Commissioners
McChord. consulted at ono time with
Chairman Colvcr OF the federal trade
commission and subsequently expressed
The opinion that the prices wcrn TO"
high The attitude OF Mr.. Golfer was
not disclosed The advisers opinion
was again reiterated after conferences
yesterday in New York with represent
tsiives of The steel industry. Mr. Hines
said.
Cnatzua-: PsrEc E.-scmrnt-
Chairman PscE's 5t11eDieni in pars -
aJ follows 4.
The director .ScnrraI OF ta11T C:idr has
Today g5Tcru LAP IN PIES y *ta1"nirnl
Definitely refusing e, GCHcIt IN" prJce-s
ON At~l approv,1: hr All" iIldh=iTIa'
! irrsrG ~ r"rrEi;"f:in;; ~. ITltfs Tor
putllc bu! Tm: SlaLeIu:ul DIS