Evening star., 1946-12-18
New Wage Increases d
Block Price Cutting,
Business Contends
BY The Associated Prsss

BY The Associated Press
The United States Chamber OF
Commerce conceded today that
many prices are too high" but
declared a new round of wage
increases will make reducing
them impossible"
The chamber gave industry's first
full-dress reply to the CIo conten-
ton that industry can afford wage
increase ranging up to 25 per cent
without raising prices or substan-
TALLY disturbing profit returns.
Economic mirage" was the re-
buttal Of William K. jackson, presi-
dent of the chamber. He said any
wage increases will be accompanied
by closely corresponding price in
creases."
Mr.. Jackson submitted an analysis
of the report made recently for the
CIO by Robert r. Nathan, private
economist and former deputy war
mobilization director for the Gov
ernment. The analysis contended
both Mr.. Nathan and the CIO had
used facts "carelessly."
Differ on Profit Level.
Mr.. Nathan said industry profits
are at an all-time high, even ex-
ceeding war levels. The chamber
they are "below normal" ;"
The CIO report contended work
ers' real" earnings have declined
from 1945 peak. The chamber
asserted that "by the autumn of this
year the wage worker was still SUBJ
stantially ahead, in real wages, OF
his position before the war or before
the depression OF the 1906"
The CLIO declared industry could
have afforded wage boosts without
prices last spring and can
again in early 1947. The chamber
replied that prices did 60 up after
the first wage round, the CLOS
thus proved "fallacious"
and demanded what makes them
any more valid now?"
The whole argument over the
meaning of statistics, most of which
were obtained by both sides from
the Government, is a prelude to the
CIO wage drive for 1947. The CIO
Auto Workers already have asked
for 235 cents an hour increase.
Somewhat similar asking figures are
expected from the big CIO steel and
electrical worker unions, as well as
other CIO affiliates.
Both Warn Of Depression.
Both sides warned of depression
ahead, but for different reasons.
In statement over the week end,
CLIO President Philip Murray spoke
of depression with more than 49,
000. 900 unemployed. He said 1T will
come unless worker wages are raised
to maintain purchasing power for
industry's products.
Documents made public by Mr.
Jackson said collapse" is a strong
possibility If organized workers get
new wage increases which jack up
prices again while other people,
such as those depending on pen
sions and life insurance payments,
have to get along on fixed incomes.
The chambers analysis of the
Nathan report was prepared by
Economist Emerson P. Schmidt,
Canadian born former instructor
at the Universities of Minnesota,
Oregon and Wisconsin. ii s
The Chamber of Commerce rec
ognizes that our wage structure is
out of balance-some wages should
be adjusted downward and others
Mr.. Schmidt said. Only
the free and open market should
make these adjustments. ~ ssEeas
sThe groups now most aggressive
in demanding second round OF
wage increases are for the most part
those which in the last decade have
already pushed their rate ahead Of
the general rate.
Says Business Seeks Cut.
MANY prices are too high. Many
openly say this is true
of their own output. They would
like to see prices lower, SO as to
broaden markets. But, since wages
are the chief component of costs. it
is impossible to work toward sub
stantially lower prices if second
round of wage increases Is wrested
from industry
Mr.. Schmidt also stated 1t is the
function neither of Government nor
the CIO to control profits, main
tanning that when profits are above
new jobs and investment
are opened up.
ANY private group which as
sumes the wisdom and the power
to determine the proper level of pro-
fits is trying to arrogate to itself the
proper function of the competitive
motive" Mr.. Schmidt declared.
Mr.. jackson recalled that Mr..
Murray had maintained sit is up to
the industrialists" to determine
whether new wage demands can be
settled peacefully without strikes.
Its just as logical, the chamber
president observed, "as though
said to his victim, If
you don't hand over your money
I'll have to shoot you-and 1t will be
your fault ,"
Rahv StrannIed in Crib