The sun., 1919-04-04
Breach With Price Fixing
Board Widens and Its
Fate Is in Balance.
WILSON ASKED TO DECIDE
Railroad Head Issues State
ment on Coal Situation, Urg-
ing Competition.
SpeciaL Dtspnfch 70 TnE srN.

IN the Wilson Administration and much
bitterness have developed as a result of
the split among executive officers OF the
Government over steel prices fixed or
agreed upon by the Industrial Board OF
the Department of Commerce which d.
rector General Hines Of the Railway Ad-
ministration has refused to accept
Al result the whole Government
price sterilization programme is threat
ened with failure or abandonment. Eff
forts will be made again tomorrow to
bring the contending forces together. 1t
was broadly intimated o-day that II any
agreement Is reached 1t will have to be
predicated upon an entirely new start
by the Industrial Board. a general re-
vision Of the steel and other agreements,
the bringing Of lower prices and the es-
tablishment Of different policy.
The break is over the question OF
policy to be pursued by the Industrial
Board as we'll as on the question of the
steel prices named two weeks ago. Di-
rector-General Hines, Secretary of the
Treasury Glass and other officials are
convinced that the Industrial Board de-
parted from the announced and under
stood policy in fixing steel prices and
went Off on an unexpected tack in fix
ing prices instead OF mediating between
producers end the Government purchas-
ing agencies to bring a price at which
the Government could 20 heavily into
the market and establish confidence in
the price.
Both sides to the controversy have
laid their views before the President,
but he has so far kept his hands off. IT
was intimated tonight that he will not
take sides, but will leave settlement to
the contending officials involved.
Breach Widcns PerceptibIy.
There has been no meeting OF the Of
Metals involved since the stormy session
of yesterday, but the breach widened
perceptibly to-day.
! Sharp differences developed over a
question as to whether the Railroad Ad-
ministration had or had not in substance
accepted some OF the prices announced
BY the Industrial Board through Di-
rector T. c. Powell Of the Division Of
Capital Expenditures, who was named a
member OF the board representing the
Administration. 1t was learned that 1t
was the understanding OF some OF the
board that Mr.. Powell had emphatically
declared that, the Railroad Administra-
ton would not accept the agreed price
on rails. but that he had said nothing
about the other prices.
Director-General Hines is opposed to
prices on either steel or coal that are
''nxed." and which do away with com
petition in selling. He made his atti-
tude with respect to coal purchases clear
IN a public statement to-day. setting
forth that mine wages and profits would
not be attacked, but that the railways
would purchase individually in the
cheapest market
Secretary GLASS; views are much the
Ha heliavaa in a and omen
market, and is strongly inclined to the
view that fixed" prices, even by any
other name. are clearly in violation ct
law. 1t was pointed out to-day that not
only Ia the Sherman law involved, but
that the statutes covering Government
purchases provide that they shall be
made by competitive bids and that there
can be no competitive bidding when
every bidder Is told by the Government
10 submit the same price.
Another Conference TO he Held.
Efforts to promote a better under
standing between the contending officials
are to be made tomorrow. A con-
ference for further consideration OF
steel prices has been arranged. Just
when the conference is to be held and
where has not yet been determined
There also is no decision as to who
will attend.
The scope Of this conference con-
sideration is expected to engender an
other Tight There is a wide difference
of opinion as to how far it is to go
Secretary Glass and Director-Genera
Hines apparently held the view thai
1t is to take UP the entire question
of steel prices and price fixing" II
general. Other officials, for whom
Chairman Peek OF the Industrial Boart
spoke, understood that II is 10 be be
tween the board and the Railroad Ad
ministration. with an inference that 4
In to compose these differences ovei
Railroad Administration expense of thu
present or other prices
In announcing the results OF yester
days conference Secretary Glass said
Tho matter was re1ommitted to thu
board for further consideration"
Later in the evening Chairman Peel
authorised an amendment of the state
ment, adding the words with the Rail
road Administration"
The shading OF meaning was clearl!
brought out to-day. Mr.. Glass said:
Nobody was authorised to add to o.
subtract from the statement I gave out
The amendment by Mr.. Peek was no
clarifying and was misleading Tn
matter was not recommitted for an!
consideration. and no suggestion wa
made as 20 what was TO be done"
Mr.. Peek said he did not want fur
ther to muddy the situation with an
announcement, but that he had mad
the amendment after talking with Sec
rotary of Commerce Redfeld and wit
q majority OF the others present at tn
oonference-
Board q MediatinE Agency.
Attention was called to-day to the an
nouncements made of the creation OF tn
industrial Board, which stated that tn
hoard was to be a mediating agenc'
created to survey production costs an
to bring about prices at which Govern
ment agencies would be warranted II
purchasing freely thus establishing pub
lie confidence In them.
Tentative agreements reached by tn
Industrial Board with the glassware
hardware, sand and gravel industries ar
being held UP pending the outcome or tn
steel fght. They may never be formall
npuroyed II the steel prices fall.
Tae stand of the Railroad Admins
tration with respect to coal prices wa
made plain by Mr.. Hines to-day In
statement which said
can interesting fiction appears to
receiving some currency MS TO the at
titude OF the United States Railroad Ad
Immigration in purchasing coal. Thi
Nction A TO the effect that the Railroa
Administration 10 conducting It's pu'
chases Of coal IN such . way az to fore
=. A n. 4 .aatr