Evening star., 1944-04-07
Sterilization
|0f Prices and
Wages Claimed
Findings in Study
Of Living Costs
For Yeor Revealed
(Tert OF Report on Page Al

(Tert OF Report on Page AZ
President Roosevelt today re-
leased a report on the stabiliza-
ton program which maintained
that living costs have been held
without change of any conse-
uence" in the last year, and that
wages have been stabilized"
The report, issued to mark the
first anniversary of the Presidents
stabilization order,
which was promulgated year ago
tomorrow, was made public by Mr..
Roosevelt at his news conference
and received his indirect indorse-
ment.
Fred M. Vinson, economic stabi-
lization director; Chester Bowles,
price administrator; Marvin Jones,
war food administrator, and William
H. Davis, War Labor Board chair
man, prepared the report, which
MIR. Roosevelt described as impor-
tant, because 1t showed how the
Government was trying to keep
prices from going up through the
roof and ultimately bankrupting
everybody in the country.
Coming at time when organized
labor is pressing for relaxation of
wage controls, the report said the
stabilization program has worked so
well that "the cost of living as a
whole" is actually lower today than
it was a year ago and that wages
have been stabilized"
I'VE must not jeopardize these
gains by any change of policy or
relaxation of effort In the critical
months ahead" it said.
Record Clean on Wages.
The officials told the President
I'VE can report that the task Of
stopping the rise in prices has thus
far been carried out" adding that
ION wages, too, the record is clear"
They explained that the stronger
controls provided in the second
stabilization law IT October, 1912,
have been put in effect and "as q
result, the cost of living, which be-
fore the hold-the- Line order was
rising three-fourths of l per cent
month. has for a solid year been
held without change of any conse-
quence." The officials emphasized
that this record-one year OF stable
living costs-is unprecedented either
in this war or in the last war"
The report conceded that there
have been increases in some items,
for example clothing, but it said
these have been fully offset by de-
creases in the prices of other items,
notably foods.
Tangible Benefits Reported.
The four officials declared stab
| ilization has brought tangible-in-
|deed bankable-benefits to all
groups. They declared stabilization
had paid off on every hand in last
ing rather than illusory benefits
and had been of benefit particularly
to some 10000, 900 persons whose in
comes cannot be boosted to keep
pace with rising prices.
The report noted that stabiliza-
ton had aided. all groups. 1t said
that corporation profits both be-
fore and after taxes rose in 1943
above the record breaking levels of
1912 and that the net income Of
farmers similarly advanced to an
other all-time high
1t added that while basic wages
have been held, the average weekly
earnings have also moved to a new
high ground and with the cost Of
living, these earnings have not been
frittered by rising prices"
THE need for continued restraint
and continued cooperation with
every phase of the stabilization pro-
gram is evidenS" the report de-
clared. adding:
obviously, too, we should cling tn
the policies and machinery which
have served us so effectively so far"
The President was asked If the re-
port was intended as an answer to
current demands to "shatter the
Little Steel formula" which regu-
lates wages, and he replied that it
was not intended as an answer to
anything, but as a statement of fact.
Formula Under Attack.
The CIO United Steel Workers
now have wage proceeding before
the War Labor Board which would
break through the Little Steel CELL
ing. The American Federation of
Labor also has been presenting
arguments before a WLB panel for
fa1 a W nf
On the wage question, the report
noted that some adjustments had
to be made to correct gross in
equities, eliminate SubStandards of
living and give effect to the Little
Steel formula. The general effect
of the policy, it said, has been to
raise earnings of low wage groups
or some of those which Jagged be-
hind the general wage upswing.
Nevertheless, total earnings have
gone up. the report added, because
of longer work hours, higher paying
war jobs and incentives to produce
factors not regulated by wage rate
controls.
But the basic wage structure has
remained substantially unchanged,
and wages have been stabilized, the
report declared.
1t said that the entire stabiliza-
ton program was in jeopardy a year
and half ago, with the stabiliza-
ton line breaking sector after Sec
tor. When the President read a
statement from the report that
prophets of disaster freely predict
ed an inf1ationary route" he paused
to say he was not naming any
names.
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