U.S. Business Tells C.I.O. Unions 'Wage Hikes Push Price Rises'; Vandenberg Approves of Byrnes

WASHINGTON, December 17--The United States Chamber of Commerce tonight described as a "mirage" C.I.O. claims that wages can be increased--maybe as much as 25 percent--without offsetting price boosts.

The first full-dress reply of business to the report of economist Robert Nathan (which C.I.O. President Philip Murray said would be used as a guidepost in C.I.O. wage demands in steel, automobile and electrical manufacturing industries) was made by William K. Jackson, President of the U.S. Chamber of Commerce.

Jackson said that after the first round of wage increases prices went up despite the argument that wages could be raised 24 percent without any price increase. He continued:

Jackson took exception to Murray's statement in Pittsburgh, where the big three C.I.O. unions are determining wage policy, in which Murray called for "peaceful settlement" of the new demands and said that "it is up to the industrialists"whether a new wave of strikes is to be avoided."

"In other words," said Jackson, "unless management agrees to everything Mr. Murray demands, then management will be to blame for the strikes which Mr. Murray will call."