Newton D. Baker to Walter S. Gifford

Title

Newton D. Baker to Walter S. Gifford

Creator

Baker, Newton Diehl, 1871-1937

Identifier

WWP21573

Date

1917 June 30

Source

Library of Congress, Woodrow Wilson Papers, 1786-1957

Text

My dear Mr. Gifford:

My attention has been called through the newspapers to the action reported to have been taken at Washington, D. C., during the past week by the so-called Committee on Coal Production of the Council of National Defense, in cooperation with certain coal producers, and representatives of coal mining enterprises, with regard to the price of bituminous and anthracite coal.

The facts seem to be that the Coal Production Committee invited to Washington various coal operators and arranged conferences between them, members of the Coal Production Committee and members of the Federal Trade Commission, leading to the adoption of resolutions in favor of an early and accurate determination of the costs involved in the production of bituminous and anthracite coal, as a basis for some future action by some official agency of the government in fixing fair and just prices for these products, should any such agency be given power to do so. Pending such an ascertainment of costs this meeting seems to have adopted a resolution whereby the operators present agreed to sell bituminous coal at a price not higher than $3.00 per ton, and that this obligation should remain in force until some such action had been taken by an authorized governmental agency.

The color which has been given to this meeting and this resolution in the newspapers may well mislead the public into believing that the Council of National Defense has either undertaken itself to fix the price of coal, or to sanction its being fixed by the Coal Production Committee, or that Committee in conjunction with the coal operators. I, therefore, as President of the Council of National Defense, write this to say that the Council of National Defense has no legal power, and claims no legal power, either to fix the price of coal, or to fix a maximum price for coal, or any other product. The Coal Production Committee is a subordinate Committee of the Council of National Defense, purely advisory in its character, formed for the purpose of advising the Council as to steps which might be recommended leading to a stimulation of production and distribution of coal. No power has been even attempted to be delegated to it to consider or deal with the question of price, and any action taken by that Committee, or sanctioned by that Committee, dealing with price, either fixed or maximum, for coal is clearly beyond the legal power of the Coal Production Committee and of the Council of National Defense, from which the Committee derives whatever authority it has.

As you are aware the Federal Trade Commission has been directed by the President to ascertain for his information the costs involved in coal production. I am to some extent familiar with the progress made by the Commission. The information I have from that and other sources, I think, justified me in believing that the price of $3.00 suggested, or agreed on, as a maximum, is an exhorbitant, unjust and oppresive price.

The fact that these conferences were attended by members of the Federal Trade Commission and by members of the Council of National Defense, of course, adds nothing to their legal powers, and I am sure that none of my associates in the Council will dissent from the view I have herein expressed, both on the limitation upon the powers of the Council and the Coal Production Committee, and the effect of the action alleged to have been taken.

I write this for the information of the Coal Production Committee, and for the guidance of all other sub-committees of the Council.

[Newton D. Baker]
President of the Councilof National Defense.


Mr. W. S. Gifford,
Director, Council of National Defense,
Washington, DC

To

Walter S. Gifford

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/06/WWI0423A.pdf

Collection

Citation

Baker, Newton Diehl, 1871-1937, “Newton D. Baker to Walter S. Gifford,” 1917 June 30, WWP21573, World War I Letters, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.