Evening star., 1944-09-17
Steel Wuqe Report


the claim that official Government
figures fail to reflect the real ris,
in living costs. Actually, they say
living costs have risen to such al
extent that the Is per cent increas,
in basic wage rates authorized b,
the Little Steel formula is not sufh
cient to enable workers to main
tain decent living standards. Fiv'
months ago a four-man committe,
made report to the President bear
ing on this question, and becaus'
of its relevancy now it is worth
reprinting. The report follows:
One year ago tomorrow, April 8,
1943, you issued executive order 1928,
the "hold-the-line" order directing
that the stabilization line be
strengthened and held. You stated,
"The only way to hold the line is to
stop trying to find justification for
not holding it here or not holding 1t
there"
On this first anniversary of the
issuance of the d-the-line" order
we can report that the task of stop
ping the rise in prices has thus far
been carried out. The stronger con-
trolls provided by the congressional
legislation of October 1942, have been
put into effect. AS result, the cost
of living, which before the "hold-
the-line" order was rising q per
cent month, has for a solid year
been held without change of any
consequence.
1t is true, as every one knows, that
there have been increases in some
items, clothing. for example. But
these increases have been fully offset
by decreases in the prices of other
items, notably foods. The general
level of the cost of living has not
been permitted to rise. Indeed, the
cost of living as whole is slightly
lower than it was year ago today.
This record-one year Of stable living
costs-is unprecedented either in this
war or in the last war
On wages, too, the record is clear.
Under the strict standards i'm
posed upon the National War Labor
Board by the "hold-the- Line" order,
some wage adjustments have had to
be made to correct gross inequalities,
to eliminate substandards of living,
and to give effect to the Little Steel
formula The general effect of our
policy has been to increase the earn
ings OF low-wage groups, or some Of
those which Jagged behind the gen.
eral upswing of wages.
; Sterilization has brought tangible
indeed bankable-benef1ts to all
groups. Corporation profits, both be-
fore and after taxes, rose in 1943
even above the record breaking levels
Of 1942. The net income of farm
operators similarly moved up to the
second successive all-time high.
While basic wage rates have been
firmly held, average weekly earnings
have moved up to new high ground.
With the cost of living stable. these
earnings have not been frittered
away by rising prices. Sterilization
has paid off on every hand-and in
lasting rather than illusory benefits.
1t has been of particular benefit to
the more than 100000 people
among us whose incomes cannot be
increased to keep pace with rising
prices. The families of our fighting
men, the low-paid unorganized work.
ers, the school, teachers and other
Government employees, the persons
living on old-age and retirement
pensions-all these have found in the
"hold-the-line" policy the protection
which was promised them in the
Sterilization Act.
We must not jeopardize these gains
by any change of policy or relaxa-
ton of effort in the critical months
ahead. All the underlying conditions
which could cause a sharp rise in
prices are still present. The best
estimates now available indicate, for
example, that the gap between the
income OF the American people after
taxes and the volume of goods avail
able for them to buy will be even
greater this year than it was in
1943. Pocketbooks and checking &C
counts are bulging with money, which
could make it difficult to hold prices
down If we went on a Nation-W wide
buying spree.
The need for continued restraint
and continued cooperation with
every phase of the sterilization pro-
gram is evident. Obviously, too, we
should cling to the policies and ma
chinery which have served us so ef-
fectively thus far.
FRED M. WILSON,,
Director, Office of Economic
Sterilization.
CHESTER BOWLES,
Administrator, Office of Price
Administration.
MARVIN JONES,
Administrator, War Food Ad-
ministration.
WILLIAM H. DAVIS,
Chairman, National War Labor
Board
II this report was accurate fiv'
months ago, and since there ha
been no appreciable change in livin,
costs to this time. it is very Difficult
to see how the War Labor Boare
or the President could justify a de-
cision in favor of the steel worker
on any cost-of- living basis.
Surplus Property Plan