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 17% 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 8a.-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

industries by months starting with January 1939. It can be seen that with few exceptions throughout this period auto wages have exceeded steel wages, on the average, and at the end of 1951 auto workers' wages were in their customary relationship with steel wages.

Mr. Feinsinger has said that, because of the annual improvement increases in the auto industry, auto wages will exceed steel wages even after the full wage increase recommended for steelworkers. Is this a fact?

We have added the increases in steel wages recommended by the WSB and also have projected auto wages assuming that the cost-of-living index will continue to be at the February 1952 level, and including annual improvement increases in 1952 and again in 1953. Thus, it can be seen that, based on official Government wage statistics, steel wages would have leaped ahead of auto wages and would stay ahead unless further increases are granted to auto workers. They in turn would then be in catch-up position. To reverse the historical wage relationships of these industries during a period of wage stabilization would seem to be contrary to stabilization policy.

Chart 11.-Here is the same long-term relationship between straight-time hourly wages in these two industries. Again it can be seen that typically, on the average, auto wages have exceeded steel wages.

We have added again the projection of the WSB recommendations as in previous comparisons. And again it can be seen that in 1952 and 1953 steel wages at straight time would exceed auto wages at straight time, a most unusual wage relationship for these two industries.

Chart 12a.-The first comparisons which I made involve the use of selected base dates for measuring increases in hourly earnings from those dates through to the latest figures published by the Bureau of Labor Statistics. A good picture of relative wage changes can be brought out with this type of chart which shows by a line the relative movement of wages in the steel industry starting with the base month for wage stabilization purposes and projected through July 1, 1953, based on the WSB recommendations. This chart shows average hourly earnings as reported by the Bureau of Labor Statistics for the steel industry only. How do wage movements in this period compare with changes in auto wages?

Chart 12b.-Here are shown the Government figures for auto average hourly earnings and a projection of those figures through July 1953, based on the General Motors annual improvement factor and cost-of-living clauses. The effect of the WSB recommendations is to move steel wages well beyond auto wages. Now what about relative wage movements in other industries?

Chart 12c.-Here are shown the wage trends of average hourly earnings in the shipbuilding, rubber, and electrical industries. You can see how in December 1950 steel wages jumped ahead of wages in these industries and during 1951, as Mr. Feinsinger has observed, these industries have had wage increases, but-and this Mr. Feinsinger has not said-those increases were designed to catch up with steel. A new wage increase in steel of the magnitude recommended by WSB will put à tremendous inflationary pressure on the wages in these other industries. Chart 13.-Here again we show the wage trend in the steel industry according to BLS average hourly earnings and that trend projected to July 1953, compared with wage trends in the agricultural machinery, nonferrous metals, and meat-packing industries. Once again in comparison with these industries it can be seen that steel wages jumped ahead in December 1950; and during 1951 there have been catch-up raises in other industries. The effect of the WSB recommendations on these other industries is only too evident.

Chart 14a. I have prepared these same comparisons using the Government straight-time hourly earnings figures. These are shown on this chart. Here is the trend of steel wages past and projected.

Chart 14b.-Now we see the trend of straight-time earnings in the auto industry. Notice that auto wages in 1952 and 1953 would be less than steel wages.

Chart 14c.-Here we show the trends of straight-time earnings in the shipbuilding, rubber, and electrical industries. Without a further wage raise in those industries and with a substantial increase in steel wages, their wages would be relatively depressed.

Chart 15.-Here again is the trend of steel straight-time earnings, actual and projected and also we have added the trend of such earnings in the agriculture machinery and tractors, nonferrous metals, and meat-packing industries. Gentlemen, the comparison is the same time after time.

From the foregoing, it can be seen that the contention that the wage increase recommended by the WSB is merely a "catch up" increase is entirely misleading.