Evening star., 1947-07-15
Economic
Continued From First Page }

OF wage increases. buG IL we CHu
keep production and productive eff
cheney moving forward, we should
be able to hold this potential price
rise from getting out of hand"
Mr. Bunting said he considered it
amazing that the death of OPA
a year ago has resulted in sucn
moderate price Increases in view of
cost increases, he added, Il believe
that manufacturers prices have
been kept in line"
But the NAM chief forecast that
"the wage increases recently granted
the coal miners will be reflected in
increased costs of manufactured
products and of transportation
Negotiated With Lewis.
In the coal wage negotiations, Mr.
Humphrey, along with Benjamin F.
Fairless, president of United States
Steel Corp, conducted the Sc
cret negotiations with John l..
Lewis which led to unprecedented
gains for ATS 900 United Mine Work
ers and aroused White House fears
Of a new inflationary whirl.
Mr.. Humphrey is chairman Of
Pittsburgh Consolidation Coal Co.
worlds largest commercial coal firm,
and president of M. A. Hanna Corp,
steel manufacturers. The coal con-
cern already has announced it will
increase prices.
Mr.. Truman issued a statement
asking steel and coal managementS
to give the week-old mine wage
rates a fair test" before raising
prices and perhaps launching new
round of commodity price advances.
Some Increases Already Made.
However, coal price increases
ranging from rs cents to SITS ton
In Cleveland. Pittsburgh, Toledo
Akron and other cities already are
in effect or expected shortly.
Walter B. Thurmond, secretary of
the Southern Coal Producers Asso-
citation, said at Charleston, w. Va,
that coal prices will go up $l.25 to
$1.50 ton, adding:
TT Is unfortunate that the Presi-
dent Is so poorly advised as to the
increased cost due to the Fairless-
Lewis agreement that he believes
coal operators could absorb the in
crease"
United States Steel's board chair
man, Irving S. Olds, said the new
coal costs undoubtedly" would
necessitate higher prices for steel
and perhaps some other products
His statement in a letter to the
New York Times, preceded Mr.. Tru-
mans appeal
Bunting advocated adoption of 9
tax program. which the NAM
already has presented to Congress
providing for top-to-bottom over
haul of the tax structure and Topping
$7000,0000 900 off the national tax bill
This would permit business to ac-
cumulate the savings needed fol
capital investment, he said.
The accumulated investment OF
new capital and the replacement OF
worn-out and obsolete equipment
in the form of plants, machinery
and equipment-have enabled us to
increase the output of workers." Mr.
Bunting said.
This also has enabled us to in
crease real wages and raise the
general standard of living of our
people
He said Americans have every
reason to look to the future with
confidence
Wages and employment are the
highest in American history he
noted. Production steadily is rising
and, equally important, it Is becom-
ing better balanced"
Demands Price Analysis.
Referring to MANS prediction ol
q year ago that prices would rist
sharply if price controls were re-
moved but would settle down a!
production increased. Mr.. Bunting
said the price question has become
~highly controversial" He added:
THE problem of cost-price rela'
tionships cannot be solved by finger
pointing ana name-Caillne. AIidlysi
of the factors involved, not recrim
ination, is called for
The NAM president said his owl
figures show that living costs ros
142 per cent from June to mid
: November, 1916, the period OF OPAt
death and faltering revival, ant
another "a per cent from Novembe
to mid May, 1947.
I'm view of greatly increased
costs" he said, Il believe that man
ufacturers' prices have been KEEP
well in line"
Wage rates have been "out II
front" of consumer prices sine
1899, Mr.. Bunting contended. ant
"real wages'-the purchasing powe
of the workers paycheck - "hay
actually increased ~ per cent dur
A. 1,t~