Indianapolis Times, Indianapolis, Marion County, 28 January 1943 — Page 4

Observers “Fear Upward Spiral if Little Steel ~» Formula Is Upset. (Continued from Page One)

‘Gore (D. Tenn), leader of the unsuccessful fight more than a year - ago for statutory ceilings on both . prices and wages. . Other congressmen said it would also mean reinforced demands for relief by manufacturers and merchants who contend they are already being “squéezed to death” between - rising. costs and present wholesale and retail ceilings. : .. The “little steel” formula, adopted . byjthe WLB last July, undertook to hold wage increases to 15 per cent __ above the level of January, 1941— ~ that being assumed to be enough to compensate for the rise in the cost of living to last May, when President Roosevelt announced that wages and. prices must be stabilized.

‘Lewis Most Vehement

The most vehement labor attack an the formula came from John L. Lewis, who, in a statement written for. the Scripps-Howard newspapers, called it “an outrageous breach and violation of the no-strike agreement between labor, industry and government.” . ‘Mr. Lewis has served notice on fhe WLB that he intends to demand and get a “wholesome increase in wages” for both anthracite and bitumirious coal miners “re.gardless of any ‘little steel’ formu1a.” : 3 . _.. President Philip Murray of the L£. I. 0, former associate of Mr. Lewis but present target of his . corn, has made it- equally clear that his organization, with more , than 5,000,000 members, means to escape from the formula’s limitations.

+ Mr. Murray has summoned the €. I. O. executive board to meet in ‘Washington Feb. 5 to formulate a . | Mew wage policy in the light of “failure by the office of price administration to check living costs.” Announcing his intention to press ‘for wage increases, he called the \ “little steel” formula “inadequate and unfair.” 4 Indications’ today were that the {U. A. W. demand for recognition of +8 30: per cent rise in living costs would be placed before the executive board in resolution form.

“7 Rail Union Demands

Twenty strong railroad unions already have served formal demands “for wage increase far larger than dherence to the formula would ‘permit. Total cost of these increases, if ' granfed in full, is estimated at ‘more than $700,000,000 a year. EA work stoppage affecting 30,000 imbers of the International Ladies’

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PAY PLEAS PERIL | ~ INFLATION FIGHT

Garment Workers union (A. P, of L.) in the New York city area, ended today upon orders of David Dubinsky, union president, Dubinsky told the dress industry

‘['workers to obey a WLB request

that they end their work stoppage immediately. The resumed work, The WLB intervened yesterday, following certification of the case by Secretary of Labor Perkins. The board asked workers to return to their jobs at once as a condition of its assumption of jurisdiction, | Dubinsky said his order was in conformity with the union’s pledge to do so if the WLB assumed jurisdiction. The stoppage, which began Tuesday, at about 400 of the 2000 dressmaking shops in the New York area, and had threatened to effect a complete shutdown of the industry, employing 85,000, by the end of the week.

Union Charges Stalling

Union officials charged the strike was provoked by “stalling” tactics of employers over the workers’ demand for “wage equalization” to meet rising living costs. Management representatives claimed their profits have been reduced by government - price regulations, and charged the stoppage was in viola: tion. of the union contract. Heard, but not yet decided by the labor board, is a demand by unions representing 200,000 workers in west coast airplane plants for increases much larger than recommended by a board special investigators, who adnered to the “little steel” formular. The formula has been a subject of bitter controversy from the first. It was adopted by the four public members and the four industry members of the WLB over the vigorous “Objections of the four labor members, who called it an unfair yardstick. | Economic Director Byrnes now has greater policymaking powers than the WLB, and, it was reliably reported today, he considers himself bound, not by the “little steel” formula, but. by the president's executive order of Oct. 2, which created Mr. Byrnes’ office.

Didn’t Mention Formula

That order, perhaps significantly, did not mention the formula. The cost of living has advanced at the rate of about 2 of 1 per cent a month since the “little steel” formula ‘was adopted, and mi new price adminisrator, Prentiss Browrr,|

week that .this rate of increase]

1943. His statement is credited with having stimulated labor demands for new wage boosts. Department of labor statistics

nearly 20 per cent since the European war began in 1939; the rise amounted to about 15 per cent last May, base period of the WLB’s wage formula, most of that increase having registered since January, 1941. However, in .May, : according to other department statistics, the average hourly wage of indus{rial labor had risen 26 per cent, and the average weekly wage nearly 46 per cent. Furthermore, approximately half the rise in the cost of living has been due to soaring food prices, on which until last October congress permitted no curbs. Now tha{ at least some food prices have been brought under control, defenders of the “little steel” formula argue, a new upward movement of industrial wages would bring congressional rebellion, start food prices skyrocketing, and undo all that has been accomplished in slowing down the wage-price spiral toward ungovern-

able inflation of the cost of living.

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TIMOSHENKO IS BACK IN NEWS

Stalin Gives Loser of Ros- ~ tov Another Chance on

Kalinin Front.

By CARROLL BINDER Copyright, 1943, by The Indianapolis Times and The Chicago Daily Times, Inc.

After five months’ oblivion Marshal Semyon Timoshenko, who prio: to the capture of Rostov by the axis had been the most talked-of soldier of the war, has again come into the Soviet dispatches. It was announced in Moscow yesterday that the former vice commissar of defense and former commander in chief of the. Russian southern front, which has been the scene of recent spectacular Soviet successes, has been appointed commander of the northwestern front. It was the first time for five months that correspondents in Moscow had been permitted to mention his name. imoshenko’s new command covers |the area between Kalinin, 100 miles northwest of Moscow, and a point south of the Leningrad front. ; sector has not figured much he dispatches during the period the fighting at Stalingrad, Leningrad, in the Caucasus and for the | recovery of Rostov has attracted world-wide attention. Does This Mean Offensive? .

Ww ether Timoshenko’s appointmen{ to command-in this sector

fensive at thal poip#h naturally is nouncement. What the Moscow announcement does indicate is that Timoshenko either has been cleared of personal

and the Soviet press had characterized as the incompetent defense and the unnecessary loss of the key Soviet position at Rostov last summer, or the famed Soviet general is being given another chance to prove his military qualities. The Kremlin's disapproval of the defense of Rostov was indicated in a famous order to the defenders of Stalingrad not to permit a repetition of the Rostov episode ahd in Soviet newspaper censure of the

military: operations at Rosi: REICH TO GET TASTE OF OWN ‘TOTAL WAR’

(Continued from Page One).

having openly said that Hungary had nothing to win in the war. Thé Croat puppet premier Milan Neditch was said by Istanbul dispatchég to have protested that the withdrawal of axis forces from Jugoslavia to Russia left him unprotected from the attacks of Gen.’ Draja Mikhailpvitch’s patriot army. The axis was reported withdrawing forces from Jugoslavia and Czechoslovakia in a frantie effort to save itself in Russia. This caused Milan Neditch, the Croat puppet premier, to complain that he was being left unprotected from attacks by Gen. Draja Mikhailovitch’s patriot army, according to Istanbul dispatches. ‘A. great patriot leader, Gen. Napoleon Zarvas, was rising. in | Greece. Another dispatch from Istanbul said his ability was demonstrated by the reward the Germans were offering for his head, 100,000,000 drachmas (nomjnally $2,200,000). They had never before offered such a reward for a patriot.

+ ATTORNEY'S WIFE DEAD WINAMAG, Jan. 28 .(U, P.).--Mrs. Imogene Gast, 35-year-old wife of X. Stuart Gast, .prominent Winamac attorney, died late yes-

{ll terday from bullet wounds which

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coroner’s officials said were selfinflicted.

WILSON RITES TOMORROW LOGANSPORT, Jan. 28 (U. P.). —Funeral services will be held tomorrow for William T. Wilson, 89, dean of the Cass county bar who died yestérday. :

-| results are obtained. If the pains do not

LABOR CHAINED, LEW CLAIMS

Moderate Inflation Already Here, He Says in Attack

On Wage Formula. (Continued from Page One)

war supplies on a cost-plus basis. Cost-plus policy puts a premium upon ' inefficiency, extravagance, war-brokers’ fees and black-market operations. The higher the manufacturer’s costs the greater his unit profit and financial rewards. “Industry is permitted expansion of maximum prices to compensate for increased cost of all equipment, materials, power and supplies. Such increases" are a negation of the principle of control through OPA maximums.

Calls Formula Arbitrary

“Accordingly, the government guarantees manufacturing and producing industries immunity against the rising cost of living as affecting corporations. In effect, the govern ment protects the prewar standards of industry and guarantees a continuance of the enormous corporate profits. “The government's attitude toward labor is diametrically opposite. The war labor board has been encouraged to freeze the wage structure. An arbitrary formula, known as the little steel formula, has been devised. It deprives labor of any wage increase in excess of 15 per cent subsequent to January, 1941. “This formula is an. outrageous breach and violation of the no-strike agreement between labor, industry and government, made in December, 1941. Organized labor abandoned the right to strike for the duration, contingent upon the government creating an agency that would judiciously determine labor’s complaints against management. No such judicial findings have been made.

Claims WLB Violations

“The war labor board violates the government agreement with labor each day that it operates. Under its arbitrary and miserably stupid formula it chains labor to the wheels of industry without compensation for increased costs, while other agencies of government reward and fatten industry by charging its increased costs to the public purse. «assuredly labor, despite its present weak and vacillating leadership, cannot long tolerate such economically paradoxical and socially unjust treatment. In March the coal industry wage negotiations will begin. At the conference the men

predicted when he took office last|foreshadows a vigorous Russian of-|who mine the nation’s coal will ask

for bread. They will hope that a|

probably would continue through|not indicated in tH’ Moscow an-|government bureaucrat will not!

hand them 4 stone.” | Philip Murray, president of the

C. I. O., who has called his execu-

vision of wages, declined in Pitts- | burgh today to answer questions | about how the cost of living can be | held down if wages and farm prices start up with renewed speed. | Two officials of railway unions— 20 of which are seeking wage in-| creases in excess of the formula for | a total of about 1,150,000 members | —also offered no suggestions as to what will happen if that formula | falls, A. F. Whitney, president of the, Brotherhood of Railway Trainmen, | said when reached in Cleveland: “The (Big Five) brotherhoods] are seeking a 30 per cent increase. | We know that wages in the railroad | industry are approximately 30 per cent lower than those of, other in-| dustries. Whether wages in other | industries are fair, I do not know, | nor could I attempt to say whether 30 per cent would be a proper yardstick elsewhere. | “I believe that each wage case presents special problems and should be considered on its own merits. I do not know that I could consistently suggest a substitute for the ‘little steel’ formula, or that any fair yardstick could be devised at a time when the cost of living is pyramiding and so many people, in the railroad industry at least, are drawing wages lower than the recognized standards.” Alvaney Johnston, president of the Locomotive Engineers’ Brotherhood, said: : f “I've got about all I can look after with the railroad men. I'd rather let the organizations affected by the little steel formula do the talking about it.” ~

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Dairy Worker Admits Watering Sunnyside

(Continued from Page One) mitted in a signed statement that he had “watered” the milk sold to Sunnyside. Immediate assignment of Police Sergt. Charles Russell, who works with the prosecutor’s office, to inspect the plant and its milk pro-

Issuance of an affidavit against Golden Guernsey by Mr. Blue, probably today or tomorrow. Further investigation by the prosecutor’s office of Kuhn's Market, which yesterday in Federal court voluntarily agreed to cease selling meat to Sunnyside at prices violating OPA ceilings. ; ~ The written statement by the Golden Guernsey employee was obtained by Mr. Blue after Dr. Thurman Rice, head of the state board of health, reported to the prosecutor’s office that the “watering” of milk could not nave been accidental. “We have a very good case, we! believe,” Dr. Rice told Mr. Blue. |

He then informed the prosecutor that one or more of the employees might make statements and one of

these was obtained last night. Mr. Blue said the statement said: Q—Give us in substance any conversation you had with officials of the Golden Guernsey Farms relative to pouring water in the milk, A—The conversation was, that if we did not have enough milk ot separate and standardize with skim milk, I was to use water. Q—You mean to say you did not have enough milk to supply the customers of your employer and they

wa fleet 270

Q—In watering the milk, what|that Kuhn's sold meat dt excessive does that do to the food content |Drices, and the state health board

of the milk? A—It lowers the food |!00K up the complaints| of sanacontent torium officials and patients that

i i |the milk was an inferior quality. Q—Approximately how many cal-| yegierday, pefore Feder

ories are there in a quart of milk Robert Baltzell, Kuhn's with a butterfat content of 38? 3 consent decree with the OPA, A—Something . around 900 calories. agreeing to stop deliveri Q—Watering the milk does re-lat the higher-than-OPA-price ceilduce the food content of the milk? ings. : A—Yes, it does. | The state’ health board’s investi- tract with county commissioners gation is: completed with the turn- void, because the prices for supply= ing over’ of its evidence to the ing’ county institutions prosecutor’s office, Dr. Rice an- and accepted by the co

instructed you to pour in water instead of using skim milk? A—Yes,' because we were short of milk. We did not have enough milk to separate and use skim milk. : i Q—Was all the milk which was; delivered to Golden Guernsey farm customers adulterated with water? A—All of the milk that tested above 38 in a particular vat would be] watered. |

nounced. lers, constitutes a violati An order prohibiting the company maximum prices allowe from selling grade A milk in Indi-|government. | anapolis already has been issued | In addition to the excessive prices by Dr. Herman G. Morgan, secre- charged Sunnyside, a stipulation in tary of the city health department. federal court yesterday | disclosed The grand jury was in recess that meat also had been sold to today but will reconvene Monday other concerns at- the higher prices. to hear additional witnesses. | These included the Marott hotel, The Sunnyside investigation start- | Curtiss-Wright Corp. and the Y. W. ed when the OPA probed reports|C. A. |

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