Arizona republican., 1919-04-03
.H|NESDECLMES
 ID ALLOW ROADS
 ID BE INJECTED
Director General Stands Firm Against All Other Government Agencies ill Opposition to Readjusted Steel Prices

WASHINGTON, April 2.-Director General Hines of the railroad admin istration which is the largest pur- chaser of steel in the United States, refused today to accept the price re- adjustments arranged by the indus trial board of the department of com merce in conference with representa- tives of the steel industry.
 An effort to effect an agreement be- tween the board and the head of the railroad administration failed al though members of the cabinet, the industrial board and representatives of the food and fuel administrations, the war trade board and the war if nance corporation conferred for four hours. The conference at times grew stormy, with the cabinet members ft- nally withdrawing to an adjoining room. from which they emerged with a recommendation that the question be recommitted to the board for fur ther consideration. This was finally agreed upon.
 Members of the conference were reticent in discussing the proceedings. Secretary Glass, who called the con- ference, refused to see newspaper men afterward and the official statement concerning the gathering was very brief. As originally issued, it read:
 A Cloudy Statement
 The steel prices approved by the industrial board of the department of commerce not having been accepted by the railroad administration, the views of both were expressed at the conference.
 ''The views of the industrial board were expressed by Secretary Redfield Chairman Peek and other members of the board.
 "The views of the railroad admin istration were presented by Director General Hines. The matter was re- committed to the board for further consideration"
 The statement caused such a furry by it's intimation that the entire ques- tion of steel prices would be reopened that an amendment was added by Chairman Peek to make the last sent ence read:
 ''The matter was recommitted to the board for further consideration with the railroad administration"
 A Further Effort
 Additional conferences will be held, it was said, at which the board will attempt to show the railroad admin .istration that the prices agreed upon are not excessively high according to cost figures obtained by the federal trade commission. Director General Hines has maintained that the rail road administration was entitled 10 it's enormous purchases at prices as low as could be obtained.
 Cites Sherman Law
 MT. Hines, according to one of the officials present, told the conference that the agreement on steel prices reached by the board with the steel industry two weeks ago, was made over his protest and was without war rant of law. The director general was reported as declaring that no matter what term was applied to the work of the board in it's attempt at price establishments, it was price fixing. The Sherman antitrust law, it was said was cited by MT. Hines. He further stated, it was said, that the railroad administration should be left to-malze it's purchases at prices acceptable tc it, and that he would not accept ar bitrary prices recommended by the board after agreement with the in- dustry.
 When the conference broke up early tonight, those who had attended filed out, each one saying that Secretary Glass was the spokesman and what ever was made public would have tC come from him.
 Secretary Glass issued his statement through his secretary, declining to sec newspaper men who requested that ht clarify the formal announcement.
 Danger of Collapse
 Some officials who have been inter ested in the work of the industria board looking toward restoring indus try to a peace basis predicted freely tonight that unless the railroad ad- ministration agrees to cooperate as 10 price recommendations and will make it's steel and other purchases or this basis, the board will collapse.
 Coal, another point of disagreement on the part of the railroad administra- tion, was not discussed at today'S
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