The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-11
WILSON To ACT
AS STEEL PRICE
CONFEREES FAIL
All Rates Set by Industrial
Board Are Too High,
Hines Says.
PEEK EAGER TO FIGHT
Crippled Industry and Cut
ting Off Of Wages Seen i'm
Lower Charges.
PEEK EAGER TO FIGHT
Special Despatch to THr svx


tons are at an end IN the fight among
Administration officials over steel prices.
President Wilson has been asked to in
tercede and save the situation, his ad-
Visers having agreed only to disagree.
Mr.. Hines. following two personal con-
ferences with Chairman Peek of the In
dustrisl Board issued a public statement
Tonight declaring that he could not an
prove OF me Industrial Board prices
necause they were too high, and cited
MS reasons Chairman Peek replied, de-
claring there would be a showdown and
that the board would fight Il out. He
made II clear that the board would not
quit II will continue to function, he
said unless otherwise ordered by the
President.
For more than a week the contendins
FORCES have conferred and endeavored to
get together. Neither would yield, how
ever.
situation Before Wilson.
Both sides made 1t clear that the Pres
fdent would be asked for a decision al
the result of the failure OF his assistants
ana advisers TO reach an agreement The
Industrial Board is laying the situation
beiore the President by cable. This was
done. IT was explained. because haste
was important to end uncertainty and to
settle the industrial situation.
Mr.. Peek says Director General Hines
will have to accept responsibility for
Illustrating Administration efforts to
bring quick readjustment from war con-
ditions. The prices reached are fair. he
contends. and lower ones will have a
serious industrial effect resulting in the
closing down OF industries and cutting
OFT wages. He also says that Mr.. Hines
is exercising monopolistic control
Mr.. Hines issued this statement:
After repeated consideration of the
steel and iron prices proposed by the
Industrial Board I am still of opinion
that those prices are too high and there
fore that the Railroad Administration
rannot approve them as being reasonable
prices,
No Power to Fix Rates.
ut has been perfectly clear to me
throughout the discussion Of this matter
and I think II Is now generally under
TODD that no power was conferred on
The Industrial Board to impose any
prices upon the Railroad Administration
but that II retained the power and also
was under duty TO exercise its own
Judgment In respect TO this important
matter. Throughout the discussion in
the Industrial Board itself Mr. Powell,
he representative of the Railroad Ad-
ninistration. indicated that the final ap-
prevail of any prices so far a the Rail
road Administration was concerned
rested with the Direcor-General himself
MIR. Powell during the discussion OBJ
iected that not only the prices on steel
rails but the prices generally were un-
reasonably high and before the COM
mittee announced its action he posi-
lively stated the Railroad Adrninistra-
tion would not agree to buy at the pro-
posed prices.
"!After the board had announced the
prices took the matter under consid-
Grafton and asked my advisers in pur-
chasing matters to give me their views
on the subject. A conference was held,
attended by John Shelton Williams. r.
S. Lovett. Henry Walters, members OF
the advisory committee on purchases of
the Railroad Administration; T G.
Powell. director OF the Division of Capt.
tai Expenditures, and Henry B. Spen-
GER. director OF the Division of Pur-
chases. The conference before taking
action consulted Chairman Colver of the
Federal Trade Commission as to aues-
tons of cost OF steel production. This
conference expressed the unanimous
opinion that the prices were too high.
Subsequently the suggestion was
made to me that a further conference
take place between representatives OF
the Railroad Administration and til.
Industrial Board and arranged for
Messrs. Lovett, Walters and Spencer
10 rediscuss the entire subject with
the board I requested the I. c. c. to
delegate one of its members to attend
this conference and Commissioner Nc.
Chord was 80 designated and was pres
ent at the conference. The result Of
prolonged discussion was that my ad.
visers. including Mr.. McChord, were
confirmed in the opinion that the prices
we're TOO high.
Price Opinion Confirmed.
"Afterward Mr.. Peek raised the aues-
ton whether II would be worth while
to get the views of the representatives
OF the steel industries. and 1 arranged
for Messrs Lovett. Walters and Spen-