employees. Harold Orr, president of the Los Angeles Federation of Teachers, pleaded for higher teachers' salaries as well as for Federal aid to education." 8 Other benefits for labor were recommended, although in less detail than might perhaps have been expected. At least two witnesses, Foster (CIO, Oregon) and Ozanne (AFL, Colorado), called for repeal of the Taft-Hartley Act. Gilbert (AFL, Los Angeles) asked for an increase of minimum wages under the Fair Labor Standards Act of 75 cents an hour, and the extension of social-security legislation, both as to the scale of payments and coverage of workers. Fisher (CIO, Washington) also favored revision and extension of Federal social security.10 9 Exports. Most of the witnesses did not want the relief shipments overseas curtailed. Only one, Latter (AFL, Utah), specifically wanted to limit exports of wheat to no more than 20 percent of the 1947 wheat crop." He also contended that there should be export controls on all goods in short supply or higher than average in price." Jordan (International Association of Machinists, Denver) in his submitted statement also favored regulating food exports. Freight rates.-One recommendation which was more regional in character than most mentioned thus far, was mentioned by at least three California witnesses. This was the control or removal of discriminatory freight rates which operated, according to their statements, against the interests of the West, and its consumers. They protested particularly the transportation charges on commodities priced on a basing-point formula in which cost is computed from some eastern point, such as Detroit or Pittsburgh, although actual production or assemblage may have occurred in California. They cited the case of a charge of $182 for distribution and delivery of a Ford car in San Francisco, the car being probably assembled in Richmond, right across the bay.12 Miscellaneous.-Two brief recommendations which are not readily classifiable in any of the categories considered thus far are that of Latter (AFL, Utah), favoring the limitation of raw materials for alcohol manufacture to sources in ample supply, instead of scarce grains,13 and Gilbert's (AFL, Los Angeles) proposal for the promotion of credit unions and cooperatives.14 Ellery Foster (CIO, Portland) made an unusual recommendation for the reorganization of the entire corporate structure. In his prepared statement he said: American corporations are engaged in wholesale robbery, extortion, and enslavement of the individual American consumer, worker, farmer, and small-business man. Instead of operating to protect the rights of the individual, our Government is being operated to protect and advance the interests of corporations which exploit the people. Corporations are so powerful that they cannot safely be permitted the same profit motive which impels the individual; it is too easy for them to exploit the public in pursuing that motive.15 * * * Foster argued that corporations are collective enterprises which should be owned and controlled by the people who buy the goods and services which that enterprise produces. If each corporation was owned by its customers— he agrues corporations would no longer contribute to inflation by boosting their prices to take advantage of scarcity.16 Conclusion The labor representatives, like industry, trade, farm, and consumer witnesses, appeared as spokesmen for a particular interest group, and presented data, arguments, and recommendations which were most sympathetic to the persons and interests they represent. For example, data comparing the decrease in real wages from June 1946 to the summer of 1947 utilized a time period that showed labor's case to particularly good advantage. Other periods could be selected to show a comparison less favorable to labor's case. Monopoly and high profits undoubtedly involve certain inequalities and injustices, but little clarification was effected by tying monopoly and the high concentration of industry to the current price rises, since these occurred to a major extent in the most competitive fields, such as food production and processing, textiles, and lumber. Certain aspects of the inflationary price problem received little or no attention. For example, the effect of the increased amount of money in circulation and possibility of monetary and banking reforms was hardly touched. There was little discussion of the relationship of productivity of labor to wages. Although the possible desirability of longer working hours was broached a number of timesthe labor spokesmen generally opposing lengthening the workweekno data were presented showing how many hours of work per person per week is most productive in various industries. Few data were presented on the distribution of the consumer dollar between wages, material, farm income, taxes, and individual and corporate profits. EXHIBIT I.-Labor organizations represented by witnesses before the Western Subcommittee of the Joint Committee on the Economic Report, October 1947. I. American Federation of Labor: California State Federation of Labor, John F. Shelley, president. Colorado State Federation of Labor, Robert Ozanne, director of education and research. Utah State Federation of Labor, Fulmer H. Latter, president. Washington State Federation of Labor, Albert Kennedy, legislative Los Angeles Central Labor Council, Robert W. Gilbert, attorney. National Federation of Post Office Clerks: 10 Foster, p. 3348. Utah State representative, Ivan J. Mathis. Local 64, Los Angeles, John Mackay, president, and Noe Perelman, Portland, Oreg., John H. Potts, representative. II. Congress of Industrial Organizations: California CIO Council, Paul Pinsky, research director, and Philip Utah State Industrial Union Council, Willard Y. Morris, legal counsel. International Woodworkers of America and Oregon State Industrial Food, Tobacco, and Allied Workers, Seattle, Robert H. Kinney and Jack III. International Association of Machinists: Regional grand lodge representative, Denver, Colo., W. B. Jordan, who Grand lodge representative, Salt Lake City, Utah, Tom H. Temple. Portland, Oreg., Charles F. West. IV. National Labor Bureau (representing miscellaneous unions, including both Daniel Johnston, director of National Labor Bureau for Los Angeles. EXHIBIT II.-Summary list of recommendations made by labor representatives testifying before the western subcommittee of the Joint Committee on the Economic Report, October 1947 Price control and rationing: Maintenance of rent control. Maintenance of credit controls. Reimposition of limited price controls and rationing, restricted to minimum essentials. Rolling back of prices to June 1946 levels. Freezing prices at present levels. Establishment of a system of area price adjustment boards under an office of commodity price adjustment. Antimonopoly: More vigorous enforcement of antitrust laws. Larger appropriations for the Antitrust Division of the Department of Justice. Prosecution of "monopolies" in steel, oil, rubber, meat packing. Control over absorption of small firms by large firms. Control over price-fixing policies of large firms. Control over curtailing of production and distribution by certain monopolistic industries. Prevention of collusive activity. Speculation: Control over food, especially grain, speculation. Increasing margin requirements in grain market to 100 percent; in commodity markets generally to 50 percent. Ending all speculation on commodity exchanges. Release of Government stores of wheat and cotton. Excessive corporate inventories to be placed on the market to benefit con sumers. Housing: Long-range, low-cost housing program. Federal housing program that would bring about construction of 1,750,000 houses annually for the next 10 years. Passage of the Taft-Ellender-Wagner housing bill. Taxation: Reimposition of excess-profits taxes. Increase in personal income tax exemptions. Tax relief for those groups which have not shared in the increases in national income. Repeal of discriminatory taxes on margarine. Wage increases: General round of wage increases, especially if Congress fails to restore price control and rationing. Wage increases to post-office workers. Wage increases for teachers, and Federal aid to education. Other labor benefits: Repeal of the Taft-Hartley Act. Increase minimum wage level under Fair Labor Standards Act to 75 cents an hour. Extend social-security legislation, both as to scale of payments and coverage of workers. Shipments abroad: Continuation of relief shipments abroad. Limitation of wheat exports to 20 percent of 1947 wheat crop. Export controls on all goods in short supply or higher than average price. Freight rates: Ending of freight-rate discrimination against the West. Ending of basing point system which thwarts western development and increases prices to western consumers. Miscellaneous: Increase in production. Making risk capital more readily available to small and new business, through Widespread education on profits, wages after taxes, effects of speculation, etc. Amendment of California law requiring bars to be equipped with kitchens and food. PART IV. REPORT OF MIDCONTINENT SUBCOMMITTEE 1 JOINT COMMITTEE ON THE ECONOMIC TO THE Scope of hearings SUMMARY AND CONCLUSIONS During the congressional recess from September 23 to October 17, your subcommittee held 15 days of hearings in four major centers and two smaller communities in the midcontinent area. The hearings were aimed at determining the extent of price maladjustments, the effect of these maladjustments on various economic groups, and positive remedial proposals to safeguard the stability and healthy functioning of the economy. The subcommittee heard a large number of scheduled witnesses, who testified as individual experts or as representatives of various groups. In addition, every person who asked that he be heard was given an opportunity to present his views. Witnesses came from all walks of life. Among the groups prominently represented were consumers, labor, welfare agencies and organizations, veterans, farmers, and businessmen, including manufacturers, wholesale and retail distributors, food processors. In all, the subcommittee heard 257 witnesses. The date and place of hearings and the number and type of witnesses are shown below. 1 Mr. Huber participated in only 2 hearings with this subcommittee and then transferred to Western Subcommittee for all its hearings. He joined with latter subcommittee in its conclusions and recommenda tions and therefore did not participate in the Midcontinent Subcommittee report. Place and dates of hearings and number and type of witnesses Magnitude and effects of price increases The 257 witnesses were practically unanimous in their testimony that recent price rises, particularly in consumer items, were creating a grave national problem. In general, witnesses described the magnitude and effects of inflation in qualitative, often highly personal, They envisioned a serious decline in the standard of living, and an unbalanced movement of the economy into a period of falling prices and recession. Spokesmen from consumer and labor groups emphasized the acute pressures upon their people of the rising costs of consumer items. They pointed out that in the case of food not only had the price rises been steep and this applied even to normally low-cost staples-but that since food purchases could not be deferred, the impact of the price rises was felt immediately and painfully. Witnesses asserted that families in the low- and fixed-income brackets were already suffering malnutrition as a result of food-price increases. The sharp price rise in other commodities, particularly clothing, also had an adverse effect upon purchasing power and standard of living of the average consumer; but here the consumer had greater flexibility in the timing and quality of his purchases, which gave him some recourse from price advances. There was little discussion of rents by the consumer and labor witnesses. Their testimony reflected the fact that this consumer item had remained relatively stable and that they anticipated a continuation of rent control with no substantial increases. A few witnesses who talked about rents at greater length were anxious that there be no rise in this major element of the cost of living. Since rents constitute one of the largest segments of a family budget, and shelter is an item which cannot be postponed, they voiced the fear that a rent increase would make acute the plight of tenants, whose standard of living had already been pushed down by rising food, clothing, and other prices. General consensus of opinion among consumer and labor witnesses was that in the small-income groups, price increases were inflicting real hardship; in the moderate-income groups, they were lowering standards, creating insecurity by exhausting current resources and depleting savings. |