tries do not include the latest 3-cent cost of living increase March 1, 1952, for those companies. However, the February cost-of-living index, if continued into the coming months, would eliminate 2 of this 3-cent increase.

Chart 2a. Mr. Feinsinger's wage increase figures besides starting with an unfair pin point date, December 2, 1950, represent the changes in base rates only for selected companies within each industry. The Bureau of Labor Statistics compiles on a uniform, comprehensive basis, statistics of average hourly earnings for these same industries. Average hourly earnings consist of earnings at basic hourly rates, incentive earnings and shift differential payments, which together constitute straight-time earnings, plus premiums for overtime and work performed on holidays. Here are shown the increases in average hourly earnings in the same industries using these Bureau of Labor Statistics comprehensive data. Such earnings are a far more reliable measure of the relative status of employees in various industries from the standpoint of wages than are the wage rate increase statistics upon which Mr. Feinsinger relied. It should be noted in passing that the Presidential Steel Fact-Finding Board in 1949 selected average hourly earnings as the best available method of determining whether or not the workers in one industry were suffering wage-rate and income inequities relative to workers in other industries. Also, in this comparison we have moved Mr. Feinsinger's starting point back 1 minute, namely, to include the entire month of December 1950 so as to include the last steel increase. It can be seen that the increases for steelworkers compare very favorably with any of the other industries frequently mentioned by Mr. Feinsinger, and others. However, the increase shown for steel does not include the increases recommended now by the WSB.

Chart 2b.-Here we show the increase for steelworkers including the WSB recommendation as it would add to the average hourly earnings at January 1, 1953. The WSB recommendations, when fully effective at January 1, 1953, would add 24.6 cents to the average hourly earnings of the steelworkers. This is less than the full cost to the companies which is about 30 cents (28.9) per hour because the BLS average hourly earnings figures do not reflect the employment cost items of vacations, pay for holidays not worked, payroll taxes and pension costs. These fringe items make up the difference between the 24.6 cents cost shown and the 30 cents total cost. It can be readily seen that the increase for steelworkers would be enormously more during this period than for the other industries. Thus there will be tremendous pressure for a new round of increases in other industries to match the effects of the steel wage increases.

Chart 3.-Mr. Feinsinger also presented data showing the general wage increases granted by the same selected companies since Korea or June 1950. These increases are shown by this chart. What do the statistics of average hourly earnings issued by the Bureau of Labor Statistics show for the same period?

Chart 4a.-Here are the actual increases in average hourly earnings for the various industries. Again it can be seen that the steel wage increase during this period is not much behind even those industries having the largest increases. Steel shows a greater increase than three of the industries and a lesser increase than four. Now if it be the view of the WSB that a wage increase in steel is needed to catch up with these industries, three of which it already exceeds, they have considerably overshot their mark. Let us see what the addition of the WSB recommendations in steel would do to this comparison. Chart 4b.-The addition of the full WSB recommendation would put steel wage increases, at the beginning of next year, greatly ahead of the increases in any other industry. Again during this period the increase in steel wages is much greater than the highest of the other industries and would require a new round of wage increases to enable these industries to catch up with steel. As I stated earlier, the Board itself selected January 1950, as the appropriate base date for wage comparisons under stabilization.

Chart 5.-Here are charted figures presented by Chairman Feinsinger as to relative increases in selected companies starting with increases in January 1950, in these industries. Now again what do the figures compiled by the Bureau of Labor Statistics on average hourly earnings show for these industries? Chart 6a. Here is the comparison of wage increases beginning with the wage stabilization base period a very appropriate period for comparison. Again it can be seen that the wage increases in steel are very substantial in relation to the other industries.

Chart 6b.-We show next the ultimate increase in steel wages as recommended for the beginning of 1953 as it would be reflected in the BLS average hourly earnings. So, on the basis of the full period of wage stabilization, the WSB recommends an increase in steel wages of more than 17 cents an hour greater than the largest increase for any industry they selected as a basis of comparison.

Gentlemen, no matter how these Government statistics are viewed, the only realistic conclusion must be that the WSB steel recommendations would result in heavy pressure for another round of catch-up increases in the various industries which they have talked about as having had more pay increases than steel. Average hourly earnings include the effect of overtime payments. Therefore, I have had prepared the same series of period comparisons using straight-time average earnings as calculated from the average hourly earnings using the BLS formula for eliminating overtime. As previously noted, straight-time hourly earnings consist of earnings at basic hourly rates, incentive earnings and shift differential payments. I will run through these comparisons quickly for you.

Chart 7a.-Here are shown the increases in straight-time hourly earnings for the same industries starting with increases in December 1950. The steelworkers have received a substantial relative increase in straight-time earnings.

Chart 7b.-Here is the increase projected to include the WSB recommendations in steel. The effect on the straight time average hourly earnings of the WSB recommendations effective January 1, 1953, is 19 cents per hour as shown. This is composed of 171⁄2 cents base rate increase, 1.2 cent increased shift differentials, and 0.3 cent for reduction of southern differential. It can be seen that the steelworkers under the WSB recommendation will be doing so well that wages in those other industries would certainly be "unstabilized" by their relative loss in way position. This is not wage stabilization; it is a continuation of past wage inflation.

Chart Sa.-Here are shown increases in straight-time earnings since Korea. In this period the steel industry shows an increase in straight time hourly earnings of 20 cents. The largest increase shown is 27 cents for agricultural machinery and the smallest increase is 17.8 cents for shipbuilding.

Chart 8b. Here is the effect of projected increases on straight time hourly earnings in steel. The effect of the WSB steel recommendations is to make the steel wage increase far greater than that for any of the other industries cited by Mr. Feinsinger.

Chart 2a.-Here are shown the increases in straight-time earnings in these industries from the Board's stabilization base period of January 1950. In this period the increase in steel straight time hourly earnings is less than that of five of the industries and greater than that of the two others.

Chart 9b.-Here we show the effect of the WSB steel recommendation on steel straight-time earnings at January 1, 1953. Again the total steel increase would be much more than the largest increase for any of the other industries which Mr. Feinsinger compared with steel.

Now it must be evident that no matter how the official Government wage statistics are compared, the steelworkers' wage increases, including the WSB recommendations, would be so high that it is incorrect to state, as Mr. Feinsinger has, that they would not lead to increases in other industries.

Chart 10.-Since so much has been said about relative wages in the steel and auto industries, I should like to show you a longer-range comparison between average hourly earnings in these two industries. Here are shown the Bureau of Labor Statistics average hourly earnings of production workers in these two