The Waterbury Democrat., 1942-11-07

Whatever the outcome of the bonus-pay raise discussions, the board plans a sizeable reduction in the city's tax rate for l943. A rate of 29.75 mills Is not unlikely, though the general feeling at the city hall is that the rate will be 30 mills. The present rate is 3075 mills.
 Grand List to Rise
 A huge increase in the city's grand list is anticipated, accounted for in large part by large factory inventor les. New buildings will also help swell the grand list, more than off, setting decline expected in as- sessments on automobiles.
 The finance board will begin a firal series of meetings on the pay question Monday night. Delegations from the police, fire and school de- partments are expected to attend. to present their views.
 Significant extracts from the Tax payers association bulletin follow: Changes in the Cost of Living
 (I) From 1913 to the close of World War l in 1920, living costs increased from 70.7 to high of I43.
 (2) During the two years fol- lowing World War I, the cost of living index took sharp drop and then gradually leveled off until the beginning of the 1929 depres- sion.
 (3 During the first three years of the depression living costs dropped from 1925 in 1929 to the lowest depression point of 92:4 in 1883. This was the lowest point reached since 1917.
 t4) Following 1883, living costs started 8 gradual upward trend until they reached 1902 in 194O.
 (5) After 194O, the increase was more rapid until the imposi- tion of Federal Price Control after which the upward trend was more gradual.
 (6) Present living costs are 26 per cert below tho highest reached during the last World War.
 @ The present cost of living is lower than at any time during the period 1919 to 1880, the period when present basic wage scales for city employees were established.
 Real Wages of City Employees
 In order that a more adequate evaluation of an employees wages maye be made, it is desirable that earnings be translated into term: of real wages or buying power" As an example of the trend in thi: respect. the foregoing chart which cites the example of an employt earning $2.000 per annum between 1925 and 1942, Is used. During tht period 1892 to 1889, salary reduction! of from 10 to Is per cent were made CThese are the approximate reduc' tions made on salaries of Water bury city employees during tha period.) The average cost of living index of the U. 5. Bureau of La bor Statistics for the period 1923 | 1928, is used as the base for com putting real wages for the variou years.
 An examination of the foregoinl chart leads to the following ob serYations:
 I. Between 1925 and 1883, the buying power of city empl0ye steadily Increased each year-this, in spite Of the fact that from l930 to 1889 the average civilian was being pinched by the depres- sion and forced Co reduce his liv- ing standard below the 1929 level.
 2. From 1888 to 1889, the later depression years, salaries of muni- cipaI employees dropped due t0 sai- ary deductions ranging from 10 per cent to IS per cent with . consequent drop in buying power. in spite of these decreases how ever, city employees had their buy- ing power maintained on a level above the i930 level or that of any of the five pre-depFession years. In other words. etiy employees actually prespered by the depres- sion In spite of the fact that many civilians were on relief and many taxpayers lost their property due te inability to pay taxes.
 ,. In l9f0 the purchasing pow eF Of municipal employes toek another big jump and reached the highest point since 1925. {. Nm I94I, because the buying power of city employees started te