New-York tribune., 1919-04-04
Railroad Heads Declare
They Never Promised to
: Accept Figures for Steel
! Set by Industrial Board
Whole Policy to Change
Coal Companies Now Assert
They Are Treated Unfair
ly in Railroad Fuel Deals

partment of Commerce and the rail
road administration over steel prices
has developed q new question Of
whether the board shall attempt to
arrange prices with basic industries at
which the public shall bc asked to
make purchases.
Reconsideration of the entire policy
OF the board, with possible consequent
withdrawal or revision Of the steel
prices already announced, has been de-
cided upon. Conferences will start to-
morrow between representatives of the
board and the railroad administration,
on which it is believed will depend the
future activities of the board.
1t developed to-day that the CON
orence yesterday, attended by several
Cabinet members and the heads of all
the important government purchasing
agencies, decided to rccommit to the
board the "entire matter" involved in
the refusal of the railroad administra
tion to accept the new steel prices. 1t
was said that there was no intention
to recommit only the controversy with
the railroad administration, and Char
man Peek's amendment to 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 re-
feet the sentiment of the conference.
Hines Refuses to Comment
Director General Hines refused to-
day to comment on the controversy.
Publication by the board for the pub
lie guidance of list of steel prices
which had not been accepted by the
railroad administration and insistence
after they were published seem to be
the points at issue which have divided
government officials into two opposing
camps on the question of price fixing.
AS originally constituted, according
to official announcements made at the
time, the board was intended to be an
instrument of mediation between indus
try and government purchasing agen-
cies to see whether prices could be
made sufficiently attractive to induce
the government to purchase freely
" sas declared by men active in the
Creation of the board that it was not
Sntended that the board should indorse
prices for the public, but that the &C
ceptance of new prices by the govern
ment was to be the assurance Of the
pon.D It they vs.,Se' considered fair
on the basis OF known costs.
Not Acceptable to Roads
When the new steel prices were ar
aanged the railroad administration
gave notice through its representative
on the board, T. c. Powell, that they
- ~
chaser of steel in the United States.
1t was said that there was some dis
pute between the board and the ad-
ministration as to whether the notice
Comprised only rails, claimed by
the board, or steel products, as al
legged by the latter: AT any rate, the
announcement of tht~hew scale made
table to the government, but offered
them only as satisfactory to the pub
aic."
Steel rails were priced in the revised
schedule at $45 and SAT a ton. The
railroad administration still is receiv-
ing deliveries on contracts at $50 to
$40 ton.
!. Charges by the National Coal AS
Sociation of unfair practices" on the
part of the railroad administration in
Its purchase of coal and the refusal Of
the coal operators to undertake price
kevisions unless the railroad admins
stration agreed to accept them pre-
Yiously. were answered by Mr.. Hines
in statement explaining the policy of
the administration in purchasing fuel.
Calls II Interesting Fiction
The statement said:
An interesting fiction appears to be
receiving some currency as to the at
rtitude 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 it be-
low the cost of production, thus in
Surn forcing them to increase their
prices to the rest of the community.
~ THE assertion Of this fiction seems
10 carry with it the suggestion that, in
order to prevent the railroad admins,
'sration from accomplishing this pur-
pose, 1t Is important to find way to
remove all competition in bidding for
aueh government business, and, in.
stead, TO fix in the respective mining
nlstr1cts uniform prices at which al
producers would be willing to sell anc
1T which the railroad administra ior
would have to buy
Ine remedy thus suggested for thi:
sfctitlous evil would, Of course, have
the result of giving the coal operator.
the relatively high prices without an,
competition, which they could use a.
4 basis for selling to the general pub
sic, so that the element Of competitio,
would fade from the picture and virtu
Ally the whole consuming public woul,
pc paying prices which in the aggre
gate. would be far in excess of WIN
would be necessary to maintain exist
9nS wages and pay sufficient profits.
Has No Such Purpose
While it hardly seems necessary te
10 so, | wish to give the country ths
assurance that the railroad admins
eration has no such unjust and short
SIDED purpose az TO force producer;
10 sell below cost or impose burder
on the rest oil the public. There is n,
3nstitution-- public or private--in tn
country that has greater interest il
the promotion Of prosperity than til
railroad administration has, becaus,
the more the business of tho countr
increases the more ne. revenues tn,
railroad administration will enjoy.
"At the same time | believe it woul,
be opposed to the interests of th,
general consuming public, AS we'll a.
pf the government, to forego abso
lutely all benefits of competition ant
buy coal for the government at un
necessarily high prices, which in turr
will Immediately become the stsndart