Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-04-04
HINES REVOLT 7.
CAUSES SHAKE UP
IN PRICE BOARD
Reconsideration of Entire Pol
icy of Board With Possible.
Withdrawal of Steel Prices
Is Probable,
10y MORNING JOURNAL SPECIAL LEASED w,Eel

10y MORNING JOURNAL SPECIAL LEASED WlREl
Washington, April 3-Conflict be-
tween the industrial board of the de-
partment of commerce and the rail
road administration over steel prices
has developed a new question of
whether the board shah attempt to
arrange prices with basic industries
at which the public shall be asked to
make purchases.
Reconsideration of the entire policy
of the board. with possible conse-
quent withdrawal or revision of the
steel prices already announced, has
been decided upon. Conferences will
start tomorrow between representa-
tives of the board and the railroad
administration on which it is believed
will depend the future activities of
the board.
1t developed today that the
lengthy conference yesterday attend
ed by several cabinet memBAs and
the heads of all the important gov
eminent purchasing agencies, decided
to recommit to the board the entire
matter involved IN the refusal of the
railroad administration to accept the
new steel prices. 1t was said that
there was no intention to recommit
only the controversy with the rail
road administration and Chairman
Peek's amendment 10 the official
statement issued by Secretary Glass
in whose office the meeting was held,
was declared by the treasury head to
have been UNAUTHORIZED and not to
reflect the sentiment of the confer
ence.
Director General Hines refused to-
day to comment on the controversy.
! Publication BY the board for tho
public gufdancef of a list of steel
prices which had not been accepted
by the railroad administration and
insistence that the latter should ac-
cept the prices after they were pub
lished seem to be the points at issue,
which have divided government Off
Gals into two opposing camps on the
question of price fixing.
When the new steel prices were
arranged the railroad administration
gave notice through its representative
on the board, 7. G. Powell, that they
were not acceptable to the largest
purchaser of steel in the United
States 1t was said that there was
some dispute between tn board and
the administration as to whether tho
notice comprised only rails as con-
tended by the board, or all steel pro-
~
any rate. the announcement of the
new scale made no mention of the
prices being acceptable to the govern
ment, hut offered them only as sat
isfactOry to the public"
Steel rails were priced in the re-
vised schedules at S45 and $47 a ton.
The railroad administration still is re-
ceiving deliveries on contracts at $3GI
to $40 a ton.
Charges by the National Coal assoc
citation of unfair practices" on the
part of the .railrgad administration I'M
its purchase of coal and refusal of
the coal operators to undertake price
revsions, unless the railroad admin
istration agreed to accept them pre-
viously, were answered by Mr.. Hines
in statement explaining the policy of
the administration in purchasing fuelH
The statement said:l
IAN interesting fiction appears to
be receiving some currency as to the
attitude of the United States railroad
administration in purchasing coal. |
This fiction is TO the effect that the
railroad administration Is conducting
its purchases of coal in such a way
as to force producers to sell to it be-
low the cost of production, thus in
turn forcing them to increase their
prices TO the rest of TIE community.
The assertion of this fiction seems to
carry with it the suggestion that in
order to prevent the RAILROAD admin
istration from accomplishing this pur-
pose, it is important to find way to
remove all competition in bidding
for such government business and in
stead fix in the respective mining dis
tricts uniform prices at which all pro-
ducers would be willing to sell and at
which the railroad administrator
would have to buy.
THE remedy thus suggested for
this fictitious evil would, of course
have the result of giving the coal OPP
orators the relatively high prices fixed
without any competition, which they
could use as basis for selling to the
general public, so that the element
Of competition would fade from the
picture.
While 1t hardly seems necessary to
do so, | wish to give the country the
assurance that the railroad admins
-ration has no such unjust and short
sighted purpose as to force producers
10 sell below cost or impose burden
On the rest of the public. There is
no nstitution-publc or private-in
he country that has a greater inter-
EST in the promotion of prosperity
han the railroad administration has,