The Waterbury Democrat., 1944-02-03

per cent since Janpary 194l, instead of the 23.4 per cent rise reported by the governments Bureau of Labor Statistics cost of living index, defin- itely puts the public and industry members-and the administration on the defensive. Public and indus try members must now come out with long and detailed explanations Of the errors in the labor report. Had the industry members taken the initiative and issued their re- port first, sticking by the BIS in- dex as now calculated, the shoe would have been on the other foot. The labor report has the further advantage in that it will have lot of popular backing. Every wage earner, organized or unorganized, is ready to believe that the cost of liv- ing has gone up too much, and that something should be done about it. REPORT FULL OF HOLES
 But when you dig down into this 80-page cost of living report which the labor leaders have slapped down on the table so smartly, the thing doesn't look so good. It is as inflat- ed and as full of holes as Senator Buffers cheese report on South American boondoggling. It is not a careful survey at all, but collection of evidence to make labors side of this argument look good and labor's plight look terrible. A few examples will illustrate the point.
 The labor report charges that the Bureau of Labor Statistics report is inadequate because it samples food prices in only 56 cities, other prices in only 34 The labor report attempts to prove this is inadequate, not by citing the prices in 75 or 100 cities, but by citing selected reports in six.
 The labor report attemts to prove that the BIS index showing 40 per cent increase in cost of food is wrong because Department of Commerce figures on expenditures for food show 70 per cent increase in the same period. The deduction is an utter fallacy because the Depart ment of Commerce figures cover re- tail sales in food stores. This in- cludes all items sold in food stores toilet paper, soap, cigarets, beer, wines and liquirs sold in delicates- sens, and so on.
 In one place the labor report criticizeS the BIS because it gets many of its furniture prices from mail order houses, yet in another place, the main part of the labor argument that clothing prices have advanced 73 per cent instead of B per cent is based on price increases shown in mail order catalogues.
 The labor report charges that the BIS index gives no consideration to increased taxes and war bond pur- chases, which is true, but labor in dealing with industry is prone to cite profits before taxes and ignore net earnings after taxes in trying to prove an employers ability to in crease wages.
 BIS INDEX DEFENDED
 There are numerous other incon- siStencies and unsound statistical de- auctions in this labor cost of living report which cannot be given here for lack of space. A good defense can be made for the BIS index as now calculated. It was considered an acceptable standard by labor when the Little Steel formula was deter mined. It has been used as basis for the negotiation of some 40 per cent of 1abor's wage contracts. It ran the gantlet of the American Statistical Association, which last December gave it a fairly clean bill of health. It is not perfect, as even it's makers admit. No survey based on sampling methods ever it.
 Rival statisticianS of labor, indus try and government can probably throw cost of living figures at each other from now until six months after the fall of Tokyo, without de- ciding anything on this controversial issue. Labor's glaringly inaccurate criticisms of the BIS short -comings in computing the cost of living in dex is this kind of home front war fare that adds to the confusion.