New-York tribune., 1919-04-02
Full Cooperation
In Sterilization
Of Prices Sought
Members of Industrial Board
Hold Success of Decisions
Depends on Adoption by
Railroad Administration
By Theodore M. knanpen

Will determine whether it is to proceed
or terminate. Charges and denials are
made that the railroad administration
has taken an attitude of Indifference,
II not of hostility, toward the board
OF review of the Department of Com
merce, which is seeking to bring about
general resumption of production by
means of lower prices to be adopted
by the leading basic industries and
sanctioned by the government. Gov
ernment sanction was to be Indicated
by the publication of the new prices
by the board of review and their adop-
ton by the government in it's pur-
chases.
Great secrecy has been observed by
the board of review regarding the atti-
tude of the railroad administration
since the National Coal Association
broke off negotiations with the board
last Thursday, with formal statement
that the railroad administration was
not acting in accord with the fair-pricc
idea and conviction that there was
no use in agreeing on prices if there
were no assurances that the railroad
administration would observe them.
Unable to Get Together
When the coal producers retired
from the conference it was for the
purpose of giving the government time
to get together with itself but when
that end did not seem likely to be
realized promptly they gave out their
critical statement of the railroad adj
ministration and went home. Chair
man Peek of the board and William
Nj. Ritter, another member, then has
tened to Chicago to confer with Mr..
Hines, but without results favorable
enough to have been worth reporting
to the coal men up to this time.
1T is stated that a conference will
be held tomorrow among members of
the board, Secretary Redheld, Secre-
tary of the Treasury Glass, Fuel Ad
minister Garfield and Director General
Hines of the railroads for the purpose
of endeavoring to secure the full and
cordial cooperation of the railroad
administration. 1t is not possible to
confirm this statement officially, but
1T is generally accepted. 1t is hoped
that when such a conference is held
1t will be possible to lay before it the
answer Of President Wilson to cable
gram that was sent to him last week
urging him to direct all departments
OF the government to respect the prices
fixed by the board of review. This
cablegram was prompted by the alleged
dilatory attitude of the railroad ad-
ministration, but to avoid invidiousness
no government department was specifi-
cally named. 1t is charged that the
railroad administration does not wish
to bind itself either to steel or coal
prices.
At the conference of the Industrial
Board with the steel men it was agreed
that SAT was fair price for open
hearth steel rails, being $40 less than
the then quoted prices. The Railroad
Administration has for some time been
in the market for 900 tons of such
rails, but so far, it is stated no move
has been made to buy at the newly
established price. Instead, the admin
istration, is reported to be endeavoring
to get rails at S35
At the coal price conference the
operators asked to be assured that the
railways would respect the price that
might be agreed upon. Members of
the Industrial Board could give the
operators nothing better than hope
that the prices would be observed.
Until the hope can be converted into
binding promise there is no chance
Tor stabilizing the prices of bituminous
coal. The railways purchase 80 per
cent of the bituminous coal output and
the operators say that they cannot
agree to prices until they know
whether they will be observed by the
railways. If the latter insist on going
1t alone" and cutting prices, then the
other consumers will have to pay more.
Reasons for Scepticism
The scepticism of the coal men as
TO the attitude of the Railroad Ad
ministration is due not only to delay
or evasion in the matter of respecting
prices fixed by the Board of Review.
but also to the fact that just before
the coal conference was held last week
Pennsylvania and Ohio fields cal ed for
tenders When prospective bidders
called the attention of the railway
authorities to the fact that they would
hardly be in position to quote prices
before the Board Of Review acted. thew
were gwen an extension of two DAYS
in which to make tenders, but while the
coal men were in Washington, thew
were notified by their officers that the
extension had been cancelled. AS the
coal year begins on April /, the oper-
bids as requested, with the result that
for part of the country, at least, the
Railroad Administration has already
obtained coal quotations for the en-
suing year-and to that extent is no
longer interested in prices that NAV
be fixed by the Board of Review. The
quotations were called for in three
forms; (1) For thirty days only; (2)
For one year cancellable on thirty
days notice at the option of either the |
producer or the railways; (3) For one
year, cancellable only at the option of
the railways. The effect of these three
alternatives was in the direction of
very low prices, lower than the coal
men would agree to as an industrial
board public price.
Contest Between Departments
Before the war the railways bought
coal pretty much at their own prices
on account of their enormous demands
and because of the we'll known fact
that the mines that had railway con-
tracts also had cars when they needed
them. The coal producers considered
that they were thus in servitude to the
railways, and charged higher prices
TO other consumers in order to even
up. When the Fuel Administration came
INTO power, there was a bitter con-
test on this subject between Fuel Ad-
ministrator Garfield and John Shelton
Williams on behalf of the Railroad Ad-
mlnlstration. Mr.. Williams wanted the
railways to be free from price regula
tions and at liberty to buy in the old
way. Mr.. Garfield won on an appeal to
the President and thereafter reduced
the price of coal ten cents a ton all
along the line, holding, with the pro-
ducers, that with the railways paving