Evening star., 1946-02-27
Snyder, Bow|es
DisputeEcc|eson
Living Cost Rise
Assert Increase Under
Woee-Price Policy
May Be Only so


and Sterilization Chief BoWles
today took sharp issue with
statement by Mariner S. Eccles,
Federal Reserve chairman, that
living costs might rise another
10 per cent under the Govern
ment's new wage-price policy.
The two top reconversion officials
minimized the effect of new policy
on living costs before separate House
committees after Mr.. Bowles earlier
had announced that the price of
meat would be boosted ~ per cent
to allow the packing industry to set
tie workers wage demands with an
increase of 16 cents an hour. OFF,
cials estimated that the average per-
son will pay only 81 cents a year
more for meat as a result of the
raise.
Mr.. Bowles told the House Civil
Service Committee that President
1ruman's new policy would raise
living costs no more than S per cent.
Sees No Reason for Runaway.
Il don't know what figures Mr..
Eccles used" Mr.. Snyder told the
House Banking Committee, adding:
There is no reason for any run
away increase in the cost of living
II we get real cooperation of indus
try and labor with the Government
agencies that administer the new
wage-price policy.
I see no reason for any material
increase IN costs"
L think the estimate of Mr.. Ec-
cles is rather high" Mr.. Bowles said.
Certainly I hope it will be no more
than half that-about per cent"
Mr.. Eccles,ain urging extension of
price controls before the Banking
Committee Monday, said there is
some possibility" living costs might
go to 40 per cent over prewar levels.
OPA now estimates that costs are
up 80 per cent.
Pay Agreements First.
In a separate statement issued at
his office Mr.. Bowles declared that
under no circumstances" will the
Government make a price adjust
ment commitment in advance of a
wage agreement. He reported there
Is some indication that in certain
industries collective bargaining is
stalled because management is in
slstlng on specific price adjustments
or promises of specific adjustments
in advance of wage agreements"
Before the House committee. Mr.
BoWles described new Federal sta
blilzation policy as "our last chance
70 stop this thing dnflation) where
1t stands. If we go beyond the pres
ent wage pattern we will get in trou-
Die. We are now fixing a pattern we
can stick with - and / think we
can do job. If I didn't think so 7
wouldn't have taken this thoroughly
unpleasant job"
The new presidential policy, he ex-
pla1ned, is one of allowing price in
creases where there are justified
wage adjustments which cannot be
paid out of present profit levels,
Pay Raises Approved.
The Wage Sterilization Board Ia Ct
night approved substantial wage in
creases for nearly 1000 900 workers
IN the meat packing and shipbuild-
ing industries, but the 650,0OO ship
builders were not sure of getting the
l8-cent-an-hour raise recommend
ed for them.
Shortly after WSB approved the
meat wage increase, recommended
ny Federal fact-finding board. the
agriculture Department, which has
oeen operating seized
packing plants for the past month
prepared to put the additional pav
In the workers envelopes.
OPA officials said the IL per cent
increase in retail meat prices might
be translated "in a rough manner"
something like this:
The Agriculture Department esti-
mates that meat consumption in the
United States this year will average
about 155 pounds a person.
Flgure the present average price
OF meat at about IS cents a pound
and the year-around cost for each
Individual is $5425. Add Mr.
Bowles' estimate of the increase to
that and the cost goes up 81 cents
per person.
Go Into Effect Next Month.
OPA's present plans are to put
the retail increases into effect late
next month. Wholesale prices are
scheduled to go up about March IL.
The new higher prices may be
the first affecting the public to stem
(See LIVING COSTS. Page All