The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1944-01-05

| Cnlng. Although
the "60-day" business was mention
ed when the President on October
81 first promised labor leaders that
such committee would be set up,
and again two weeks later when
! the committee was named, 1t is
now pointed out that the Pres
ident's letters to Chairman william
H. Davis of the War Labor Board
makes no specific mention Of any
report within so days, so the COM
mittee can take all the time 1t
wants in determining what to do.
MEMBERS ARE WLB MEN
What has actually happened is
that the burden Of proving that
there is something cockeyed about
the cost of living index as compiled
by the Bureau of Labor Statistics
has been put on the labor represen-
i tatives of the committee, and they
are apparently having their trou-
bles in collecting their data to make
their point.
On top Of this, all the members
Of the committee are also members
of the War Labor Board, and in the
past two months they simply have
not had time to worry about the
bally old cost of living index. II
they could ever get shut of the coal
miners, steel workers and few
trivialities Of that kind, maybe they
could concentrate on the cost of
living index long enough to decide
whether 1t was right or wrong and
what should be done about 1t, If
anything. But it's secondary bus
mess today.
1t is the contention of many la
Dor representatives that the cost
of living has advanced much more
than the Bureau Of Labor Statistics
index figures indicate. AS the ef-
fort to hold wages in line Is tied in
with effort to keep down the cost of
living index, 1t can be seen why la
Dor representatives are interested
in proving that the index Is too low.
In way, such proof would give
labor an excuse for breaking the
Little Steel Formula and gaining
greater wage increases.
The basic reasoning Of the labor
economists Is that the BIS index
does not include allowances for
black market prices, does not make
an allowance for quality deprecia-
ton, does not make allowance for
ten disappearance from the mar
ket Of low-cost items which were
staples purchased by low-income
families.
INDEX DEFENDED
Bureau Of Labor Statistics, how
ever, defends its cost Of living in
dex baby as a parent should, say
ing that 1t has made full allowances
for changes in wartime living con-
ditions. In March, 1913, the bureau
changed its method Of calculating
the index by making substitutions
on the list of items it priced. such
as rayon for silk hose; by allowing
for the reduced quantities of ra-
toned foods which low-income
families would be able to purchase;
by pricing higher-cost work shirts
when low-cost shirts disappeared
from the market, etc. And as a SUBJ
sequent independent check by the
American Statistical Association
found the index accurate, except In
certain specific localities.
Blu there Is one criticism which
might cause trouble. BIS now gath
ers its prices In some Sc cities OF
nine geographic regions. If 1t could
be shown that while the BIS index
was good enough national aver
age, 1t was not a true index Of price
increases in say the Detroit area,
then an effort might be made to Sc
cure for wage earners in the De-
troit area wage increase which
would cover the area increase in
cost of living.
All this would seem to lead to
endless confusion. The Presidents
Cost OF Living Committee might
well spend months more trying to
resolve such arguments.