The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1919-04-11

tabHsh some price which the govern
ment will endorse to the end that the
public will begin buying at that price
and that mere establishment Of price
for this purpose is more important
than the intrinsic reasonableness vi
the price itself. 4 cannot agree with
this principle. l am keenly alive to tho
great desirability Of stimulating busi-
ness in every reasonable wa.. but
believe in the long run that the en-
dorsement by government purchas-
ing agency of an excessive price level
would be harmful to the public interest
and would not bring about confidence
and that the end sought to be obtained
will come only by reaching a price
level which the public itself shall con-
slider to be reasonable.
II believe one OF the greatest prob
LENS that confronts this country is
that Of getting prices back to reason
able level and l beHeve progress in
the direction vial be seriously retarded
by the approval by government pur.
chasing agency OF prices which It
deems excessive.
Explaining that the railroad admin
istration lad never sought to give the
impression that it approved tie steel
prices, Mr.. Hines said:
at has been perfectly clear to me
throughout the discussion of this mat
ter and think it is now generally
understood that no power was con-
ferred on the industrial board to i'm
pose any prices upon the railroad adj.
ministration, but that it retained the
power and also under duty to exer-
else its own Judgment in respect to
this important matter. Throughout
the discussion in the industrial board
itself, Mr.. r. G. Powell, the representa-
tive OF tho railroad administration, in
dicated that tho final approval Of any
prices so far as the railroad admins
tration was concerned rested with the
director general himself. Mr.. Powell
during the discussion objected that not
only the prices on steel rail, but the
prices generally were unreasonably
high and before the committee an
nounced its action, he positively stat
ed that the railroad administration
would not agree to buy at the propos'
ed rates"
nccouudns the history OF the nego-
tiations, Mr.. Hines stated that his
counselors, John Shelton Williams.
Robert S. Lovctt and Henry Walters,
members Of the railroad administra-
lions advisory committee on purchases
Mr.. Powell, Henry B. Spencer, director
of the railroad administrators divis-
ion Of purchasing and interstate COM
merce commissioner McChord, had
agreed unanimously that the industrial
boards steel prices were too high. All
OF these advisers except Commissioner
McChord consulted at one time with
Chairman Colver Of the Federal Trade
Commission and subsequently express
ed the opinion that the prices were too
high. The attitude of Mr.. Colver was
not discussed. The advisers opinion
was again reiterated after conferences
yesterday in New York with represen-
tatives Of the steel industry, Mr.. Hines
said.
President Wilson will be appealed to
Immediately by cable to take a hand
in the controversy between the rail-
road administration and the Depart
ment of Commerce Industrial board,
which brought to head by the new
steel price schedule approved by the
board after conferences with the steel
industry.
This announcement was made in a
statement issued for the industrial
board by its Chairman, George N.
Peck, after the director general had
made public his final decision. The
open break between the two govern
ment agencies came after Mr.. Hines
and Chairman Peek had conferred for
about an hour.
In statement denouncing the atti-
tude OF the railroad administration by
which it was asserted "the government
is exhibited as setting up an industrial