Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-03-24
'Cost-of-Living Rise
Due Railway Workers
Spurs Initiation Trend
By jones Y. Newton

lCldlS were 1dCeQ WIFI new 1lIla
|tionary threats to the Nation
economy today.
On one front a million railroad
workers were due a fat wage in
crease because of rising Twin,
costs. That posed a grave threa
to the program to stabilize pay
Most of the news concernin,
the fight on imitation was bad
On the heels of a big rise in livinl
costs in the January 15-Februar,
Is period the Bureau of Labo
Statistics reported that wholesal,
prices reached new, all-tim,
high in the week ended March 20
Cost of goods at wholesale roS,
0.3 per cent in the week, Sendins
the Labor Departments index tx
1889 per cent of the 1926 average
That was % per cent above Jan.
uary 23-three days before the
general price freeze. 1t was IT,:
per cent above the pre-Korea level
Living Costs Soaring.
Living costs. the bureau report.
led. went up l3 per cent in thu
period from mid-January to Feb.
ruary Is. The rise on the Gov.
ernment's living cost gauge wa,
% points. sending it to 1898 PEE
cent of the 1935-1939 base period
The Government itself wa.
caught in squeeze by the rail.
road wage boost claim. The Army
took over technical operation Of
the railroads last August to heae
off strike and now is responsible
for terms and conditions of EN-.
ployment.
Under the contract signed s
month ago, the million non
operating rail workers are assured
of wage increases in line with
rising living costs. In view of tn.
latest living cost report the work
ers are entitled to a 6-cent-per.
hour raise.
This, added to the 1917 cent!
granted by the railroads in thu
new contract, would push through
the ceiling adopted for control o.
all wages. 1t restricts raises tt
10 per cent above levels of Jan.
uary Is, 1850.
Will Adhere to Contract.
A spokesman for Assistant Sec
rotary of Defense Carl Bendetsen
who has been in charge of the
railroads for the Army, said it was
planned to carry out the rail con-
tract provisions.
| A complicating factor is that
Economic Stabilizer Eric A. Johns
ton ruled that clauses in contracts
Itieing wages to living costs woulo
be continued until June 80 if they
were signed before the January
rs wage freeze. No provision has
been made for contracts signed
since that time.
| Mr. Johnston recently refused
to approve a wage increase fol
100000 meat clearinghouse work
ers because it exceeded the wagt
control formula. A spokesman
said he had not been asked to &C
on the rail wage matter, but HI
probably would treat it the same
way.
The first date on which an ad.
ljustment would be made for tn,
railroad workers would be Apri
7, but the majority of worker,
would not get the new rates unit
! the middle of April. This CAV,
the Army and sterilization Off
Gals a slight breathing spell be
fore any real crisis develops.
Rent Controls Extended.
In other new developments il
the mobilization drive:
l. President Truman signet
bills to extend rent control TO
three months through June 80 ant
authorize the Government to re
negotiate defense contracts ant
recapture excessive profits.
2. Retail sales slipped off some
what, providing a hull in the in
flation storm, but wholesale pric,
levels climbed to another nev
record as of March 20.
| 3. At Cincinnati, Price Stabil
izer Michael Disable said thre'
new food regulations within tn
week will set price ceilings OF
IS per cent of the items a groce
sells. He added that manufac
turers' rollbacks previously out
lined would be forthcoming within
10 days.
4. At Columbus, Ohio, Gov
Frank j. Lausche said half ,
dozen Ohio meat packers are de
manding over-ceiling prices tt
continue deliveries to State in
situations. He asked Washington
for help.
| Mr.. Disable said the proposed
new food regulations will con
troll the prices of everything bu
fresh fruits and vegetables. Thu
rollback would establish manu-
facturers' prices "as of the pre-
Korean level and permit only di
rect cost increases after tina
date" he said. Direct cost in
creases are those resulting from
boosts in the prices of materials
Act to Force Deliveries.
Gov. Lausche said at least twt
packers contend it would breal
them to continue selling meat tx
the State at ceiling prices. HI
telephoned Mr.. DiSalle's Office ane
asked that Federal officials force
packers to continue delivery Of
425, 900 pounds of meat a month
at established prices.
Retail sales across the Natior
appeared leveling off. The Com.
merce Department reported thai
the dollar value of February sales
although 16 per cent above veal
ago-a rise attributed in large
part to higher prices-fell 3 pei
cent under January after taking