Evening star., 1933-03-29
STUDY BEING MADE
|OF METHODS USED
TO FIX LIVING COST
Secretary Perkins May Adopt
New System of Making
Survey of U. S.
REVISION CONSIDERED
IN VIEW OF PAY CUT
Labor Departments Statistics
Found Unsatisfactory Because
of Lack of Information.

Because Of its tremendous impor-
tance" to employees Of labor throughout
the country and to more than half a
million Federal employees at this time,
Secretary of Labor Perkins said today
she was making study into the ad-
visibility Of revising the Labor Depart
ments system Of surveying the United
States to determine the costs Of living
Under the new economy act, President
Roosevelt may change Federal salaries
on the basis Of the cost Of living deter
mined by the Labor Department.
The department on Saturday fur
nished Budget Director Douglas with a
report showing living costs throughout
the country had been reduced 21.7 per
cent since 1923. Douglas submitted this
report to the White House, and last
night President Roosevelt ordered the
salaries and wages Of all Government
employees reduced IS per cent.
Considered Important.
Miss Perkins also said she would make
a study of the wage cuts that have been
imposed by industry during the economic
depression. Employers have contended
they have based these reductions In the
most part on the departments figures
on the costs Of living.
She said the wage-cut statistics OF the
department were not satisfactory be-
cause many employers had failed to an
swer the question Of whether they had
cut wages
II consider the question of wages Of
such Importance that staff conference
will be held to work out some plan to
make significant study" she said. ITO
be accurate it must have a checkup in
every industry-actual examination OF
pay rolls
Miss Perkins said she was aware that
the departments system of gathering
costs of living statistics had been under
a cloud for several years. She cited
the severe denunciation Of the survey
made by former Commissioner OF Sta
tistics Ethelbert Stewart in his annual
reports starting in 1927, but the only
comment she would make on the system
was "the matter IS now under study
Called Method Worthless.
She explained she would get the as
sistance of the American Statistical
Society in mapping out plans for
new survey. She said the society was
now forming q committee for this pur-
Stewart, who retired last year after
more than 40 years in the Government
service, and who is considered an in
ternational authority on labor eco.
nomics, contended the method employed
by the department In determining the
living costs was not only ant1quated.
but was mot worth the paper 1t was
written on"
In the first place." Stewart recon-
mended in his annual reports, Il would
recommend a new family budgetary sur
vey to supplant the survey made IN
1918, Our cost Living surveys are
necessarily based upon the quantities
consumed as shown by the family
budgetary survey now IS years old.
1T hardly seems necessary to call
attention to the importance OF keeping
up our cost-of-living surveys, and there
fore to the importance Of making them
sufficiently up to date. A cost OF living
survey must be based upon given
standard of living; as that standard
changes new surveys must be made to
determine what the change in standards
Is In order to give cost of living surveys
the accuracy which IS essential to their
usefulness"
Revision Not Made.
He asserted that employers were do
ing the laboring class an injustice by
determining wage scales on the depart
ment's inadequate survey.
Stewart has issued statements DEFY
ing any person in the United States to
explain the American standard Of living.
He explained that so far no such thing
existed, at least from statistical stand
point.
Because of the lack Of funds, it was
explained at the department today,
Stewards suggestion for a revision in
the system which was made in 80 cities
while this country was at war, was never
carried out.
The department contends that from
available data living costs in the coun-
try have been reduced 81 per cent since
1929 in WASHINGTON