The guardian. [volume] (Boston, Mass.) 1901-1960, 1948-08-07
Political .
Washington

Exorbitant prices and profits
are a major cause OF imitation,
Senator J. Howard McGrath of
Rhode Island, Chairman of the
Democratic National Committee
asserted today.
"Exorbitant price increases
and soaring profits have re-
duced the actual purchasing
power of factory workers despite
higher wages constitute the
major cause of today's infa-
ton" Senator McGrath said in
a statement.
Small wage boosts in the
steel industry present a typical
example" the Senator added.
Increases in the price of. steel
since the end of price controls
two years ago total more than
the entire annual payroll of the
steel industry during the past
year"
yet every time the steel com
panies raise prices, the blame is
placed on the worker who won
a small wage increase"
These greedy price boosts by
industry are piled on the con-
sumer's back when the, 1948
earnings of factory workers,
averaging about $50 a week,
have an actual purchasing
power of So less than in 1916
when average weekly earnings
were only $43.
However, while profits get
higher every month and while
consumer purchasing power be-
comes smaller and smaller, the
Republican party, together with
its faithful ally, the National
Association OF, Manufacturers,
refuses to face the facts of in
tlation."
Senator McGrath pointed out
that since the end of controls
in November, 1916, total revenue
of steel companies has increased
by $1,5s6, 517, 1874. But total wage
payments of steel companies
for the year ending last May
were only 1851, 9O7,7
The recent wage an6 price
boosts of the United States Steel
company were cited by Senator
McGrath as typical case of
high price increases following
small wage raises.
~. S. Steel granted a 13-cent
an-hour wage increase to its
workers, the Senator said. "If,
as appears likely, this pattern
is followed by the other COM
panies, the steel wage bill will
be boosted $3.50 million annually
for non-salaried workers. If
salaried employees are included,
the increase in wages will total
$162. 100000. These figures are
based on the Iron and Steel In
stitute estimate of 995 million
hours worked by the entire steel
industry last year.
after announcing its higher
wage schedule, U. S. Steel prices
had to be raised to offset the
wage increases, Senator Nc
Grath continued.
80 U. 8. Steel increased
prices 1924 a ton. This means
an additional revenue of $780,
060,280 for the company, as
Stunning its sales are the same
as the 1947 total Of 2O.242,000
tons of finished steel, the
Senator added.
Last year the entire steel
industry shipped 63,057,150 tons
of finished steel.
with other steel companies
following the lead of U. S. Steel,
the industry will realize a price
increase of 1888, s57, 781, if 194S
sales are as large as in 1947.
"The wage increases will cost
the steel industry $162,500, 000."
But the price increase will
cost Ameican consumers $685.
953, 781".
Senator McGrath also pointed
out that in June, 1916, a factory
worker earned $43.31 a week,
which amounted to $3.50 in
terms of real" wages based on
1889 purchasing power.
In April, 1948, Cthe latest
month for which complete
figures are available) factory
wages averaged $51.6S a week,
the Senator said. But this year
real wages total only $50 a
week.
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