Evening star., 1944-10-02
Cites
PeriIs
In Pay Change
GuyIord. NAM Head ,
Also Urges Firm
Stond on Formula
BY the Associated Press.

BY the Associated Press.
Eric A. Johnston, president of
the United States Chamber OF
Commerce, said today in a state.
ment to the War Labor Board
that he favors high wages. but
opposes lifting existing wage
ceilings because, he argued, that
might lead to imitation and then
to defiation.
After the last war we had infla-
tion followed by dehation," he said.
I'VE must avoid that mistake this
time"
Mr.. Johnston appeared as an in.
dustry spokesman at the boards
hearings on the demands of labor
for wage increases which would
crack the Little Steel" formula.
Keystone of the Nations wage sta.
bilization policy, +.
Earlier, Robert NJ. Gaylord, presi-
dent of the National Association OF
Manufacturers, asked WLB to "be
fair to those who fight as well as
those who work for victory by
standing firm on the wage formula.
Borrowing Against Future.
Mr.. Johnston said the war had
brought increased earnings to both
business and labor, but it should
not be forgotten that We are bor-
rowing against the future, and that
as Nation we will have to pay in
the future"
In addition to an infIationary
danger, Mr.. Johnston said. an In
crease in basic wage rates now
would multiply postwar problems for
industry
First, he said, higher costs imme-
diately would be saddled on con-
sumner industries on which, in the
postwar era, I'VE must rely to in
crease employment and consumer
goods"
Secondly, he said. the wage in
creases would be imposed at time
when postwar production costs ARE
complete mystery
Expressing belief that most firms
will want to increase hourly wage
rates after the war If they can, Mr..
Johnston said he would advocate
progressive wage increases --2s i'm
proved methods permit increased
production y
Social Security Program.
Mr.. Johnston reported last night
that the Chamber has adopted q
broad social security program based
on a referendum which he said
showed that hundreds of thousands
of business men want social security
expanded.
A policy statement added that
however desirable and necessary a
social security program may be, it is
no substitute for productive en-, ploy-
ment."
Gaylord Hits Wage Increase.
Mr. Gaylord, asserting that
neither general wage increase nor
general price increase would be
in the public interest now, added
in a statement submitted to the
WLB:
1T is unfortunate that decision
on this issue has been postponed
until this time when circumstances
make it a political football"
Contending that only IS per cent
of Tie Nations workers would bene-
fit by relaxation of wage controls,
Mr.. Gaylord said all workers would
have to pay the bill.
| Businessmen, he said, fall into
two groups: Those who could pay
higher wages out of excess profits
and those who could remain in busi-
ness only by adding the pay in
crsases to their selling prices.
Loss to Treasury Seen.
In the case of the first group, he
asserted, so long as excess profits
taxes are set at 95 per cent the
Treasury, not the employer, will
then take the loss of virtually all
reduction in business profits result
ling from higher wages"
On the second class .either prices
will have to be increased or else
these companies will 60 out of busi-
ness and their workers will join the
unemployed"
Quoting President Roosevelt as
saying in his "hold-the- Zine" order
of April %, l943. that ''the only way
to hold the line is to stop trying to
find justification for not holding 1t
here or not holding 1t there" Mr.,
Gaylord declared.
There are many in industry and
elsewhere who believe this hearing
is called for the primary purpose Of
finding the very justification that
the President warned against"
/ Wants Congress to Decide.
Representative Monroney, DEMO-
crat, of Oklahoma, ranking mem
Der of the House Banking Conn
mittee, insisted today that Congress
/ should be given chance to "ap-
prove or disapprove any modifica-
ton of the Little Steel formula.
i Mr.. Monroney, an administration
leader on price control and subsidy
legislation, expressed his views in .
letter to Economic Stabilizer Fred
M. vinson.
i TO break through the Little
Steel formula now would result In
a general upward movement Of all
prices of great enough degree to
cancel out all, or almost all. of the
real purchasing power of any in
crease" the Oklahoman asserted.
This disturbance would occur. at
q time when the battle against in
fiation Is almost won. and goal
line tumble now would result in
losing this battle" Mr.. Monroney
declared, adding:
Because wages and prices are
tied together so closely. I would like
Ito insist that, before any modifica-
ton Of the Little Steel formula -is
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