Evening star., 1944-11-20
Senate Support
Seen for Revised
Wage Formula
President Studies
Report Showing 1870
Rise in Living Costs

o'ooiilS QutleS. Page Al
BY the Associated Press,
Support for labor's demand for
revision of the Little Steel" wage
formula was indicated in the
Senate today as President Roose-
welt studied special War Labor
Board report showing a 20 to 30
per cent advance in wartime liv-
ing costs, or just about double
the basic wage increase per-
mitted under the formula.
AT the same time Economic Sta
bilization Director Fred M. vinson
pledged Special vigilance" on The
part of his Office and the Office of
Price Administration to malt advance
ing living costs.
Commenting on the WLB report
sent to President Roosevelt Satur-
day by Chairman William H. Davis
after years study Senator Pepper,
Democrat, of Florida. who is push
ing resolution to declare wages of
less than IS cents an hour si.bstand-
ard, said, Il think this calls for
revision of the formula"
Formula Termed Unfair
The formula wasn't intended to
be an arbitrary standard - he said,
but when enacted it had a relation
to factual situation. Now, due to
forces inherent in war, the facts
have changed and the increase in
living costs is shown to be 20 or so
per cent instead of Is. This also
emphasizes the need for increasing
wage rates in the lowest income
groups"
Two other members of the Senate
Subcommittee hearing testimony on
the Pepper resolution said they
thought a change in the formula
was indicated.
1T looks as if the Little Steel
formula is on the way out, if the re-
port is accepted Senator Aiken,
Republican, of Vermont, said. 7
never did think the formula was
very fair. 1t took no account of
depreciation in quality of such items
as shoes and clothing, which meant
higher living costs even though the
prices were unchanged"
Senator Tunnel, Democrat, Of
Delaware, said that while it is true
that business can't pay more than
its profits, it is equally true that an
individual can't work for less than
his necessities.
The formula can and must be
changed to meet these we'll known
facts" he said. We've Just got to
let the working man have enough
to live on, and the employer have
enough to pay him a profit"
Senator Russell Reluctant.
Senator Russell, Democrat, Of
Georgia, commented that while
some workers are entitled to addi-
tional compensation, I'D hate to
see the Little Steel formula entirely
discarded
Those who are holding the line
against imitation have got to be sup
ported" he said
Organized labor has contended
that living costs have risen about
"A per cent since January l, 1941,
the base date for the Little Steel"
formula. The Bureau of Labor Sta
tistics reported last September IS
that its index showed an increase
of 25.5 per cent. The Presidents
Committee agreed with neither, but
said about 312 to Az percentage
points should be added to the BIS
index figure.
Two industry members of the spe-
cial committee concurred "in the
main with Mr. Davis conclusion,
and the labor members, while net
agreeing, said the claimed increase
pointed to the need for easing wage
controls.
Mr.. Vinson praised the Davis re-
port as careful, thorough and
disinterested survey"
"Gratified at Their Confirmation.
Naturally, 1 am gratified at this
confirmation of the general belief
that a good job has been done in
stabilizing wartime prices and liv-
ing COSTS" he said
Il am frankly disturbed to note
that, after year of complete sta
bility the cost of living has risen
Slightly but perceptibly during the
past six months. This must stop.
The price administrator and I will
use special vigilance to this end.
Meanwhile we must plan to meet
the changes with which We" day
will put us face to face. We must
put consumer goods from our re-
converted industries on the market
at prices low enough to provide mass
markets and full employment. We
must have wage policy to pro-
vide workers with earnings high
enough to buy the products of our
expanded and reconverted indus
tries
The Davis report is expected to
be used as guide by President
Roosevelt in passing on demands
for relaxation of the wage formula.
The War Labor Board also is pre-
Iparing another factual report on
this issue.