Montana labor news., 1944-02-03
COST OF LIVING UP
FIFTY Per CENT,
MURRAY CHARGES

w "A IA a a 49,
Philip Murray charged before a Senate
subcommittee January rs that living
costs have actually gone up 500 since
January 1941.
His estimate was made in a room
jammed with spectators as the Senate
subcommittee on wartime health and
education opened its 5-day hearing on
the plight of $4,000, 900 white-collar
workers in wartime.
Slamming the inaccuracy Of the
Bureau of Labor Statistics cost-of-living
index which holds living costs have
risen only 23.4Go. Murray indicated his
own estimate of 500 would be borne out
in the report soon to be made public by
labor members of the 5-man National
War Labor Board subcommittee appoint
ed by President Roosevelt to study the
cost of living.
The report, Murray said, would con-
tain Shocking" revelations and would
also uncover the deceit" involved in
compilation of the BIS index. Organ
lied labor's demand for revision Of the
Little Steel formula hinges on validity
of the BIS index which is accepted in
government as an integral part Of the
wage sterilization program.
THE Bureau of Labor Statistics should
be asked if it has attempted to find
out what it costs an average family of
a husband, wife and two children to
live today as compared to January 194l'
Murray insisted, adding ironically that
a worker will not find any nourish-
ment in BIS statistical surveys"
ASK what effect quality deterioration
has had on workers budget" he con-
tinued. ASK how much living costs have
gone up due to disappearance of cheap
grades of clothing and goods. Ask it if
its examination of rent control has gone
beyond studies of "a cities. Ask it if it
has penetrated the problems Of the
migrant worker forced to resettle him
self in crowded war centers."
Murray backed up his charges with
two case histories of steel workers
chosen at random from a scientific sur
vey of living costs of 1900 %steelworkers
made by the United Steelworkers (CIO)
in accordance with instructions from
the BIS.
Telling the story of Charles Moore, a
hot strip finisher at youngstown Sheet
& Tube Co. in Indiana Harbor, Murray
delivered an itemized account of Moore's
expenses for a family of four over a
three-month period. Items covered
necessities, such as food, clothing, rent,
medical care, taxes and bond purchases.
Conclusion of the story was that while
Moore earned $4,000 in 1913, his stand
ard of living was actually lower than
in 1941 when he earned $144O. And
there are no extravagances listed here,
gentlemen" Murray pointed out, nor
any evidence Of inflationary spending
Contrasted with the condition Of the
workers, Murray said are the terrifying
profits being extracted out of the war
effort. Despite the clear intent of the
Oct. 2, 1912, sterilization act, profits for
1913 after taxes reached the all-time
high Of So, $3.50, OOO, 900, he said, quoting
Department of Commerce statistics.
Government surveys of industry's post
war reserve estimate it at S42, 600, 900, 900,
while CLIO surveys indicate it may run
as high as 7O,OOO, 100000, he said.
Plight of the nations white collar
workers, he asserted, is in part attribut-
able to their lack of organization. The
CLIO has been conducting intensive or
ganizing drives among ~white-collar
groups, including salaried workers and
government employees, as the best way to
protect their interests, he said.
Following Murray on the stand was
BIS Director A. F. Hinrich, who came
armed with charts and documents in
defense of his bureaus 23.496 estimate.
During his long-winded defense, however,
Hinrich praised the excellence" and
accuracy of the Steelworkers' survey
and admitted that BIS was unable to
trace beyond 1912 the general level of
family living because Congress has re-
fused to appropriate funds for such a
study.
Chairman of the subcommittee hold
ing the hearings is Sen. Claude Pepper
O.-Fa.). T~estifying in the afternoon
we're Pres. Abram Flaxer of the State
County g. Municipal Workers (CIO), and
typical members of SCMWA. Health of
the community and worker servicing it
has been seriously affected by substand-
ard economic conditions due to failure to
understand the wartime character of
public service, Flaxer said.