The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-01-28
GALL FOR
WORK To
Aid
Labor Secretary Cites Shrink
age of Dollars Power as.
Reason for Increase

Secretary of Labor James j.
Davis has proposed to Secretary
OF the Interior Hubert Work that
they combine in q request to Con-
gress that present injustices in
the retirement law be corrected,
and that annuities to aged Govern
ment workers be increased. The
proposition is made. in a letter
made public today.
Secretary Davis declared that
the retirment bill was based on
living costs in 1916, although the
bill was not introduced until 1919,
and was not put into operation
until 1920.
Figures Not Available.
He wrote that he was astonishsd
to know that the exact number Of
employees contributing to the retire
nnent fund was not available from
Government records.
The money paid retired workers is.
their own, Secretary Davis claims,
and the least the Government can
do is to relieve the old fnea.y and
women from the discomforts incident
70 the sErinkage of the dollars buy
ing power.
The letter follows:
Concerning our discussion OF the
operation OF the retirement Till and
the inadequacy, not 20 say injustice
Of the amounts paid out under 1t TO
retired clerks under existing condi-
lions. I want to caiI your attention
TO the following statement OF Iacts:
eWhile it is true that the cost
az living in the District OF Column
bia has decreased since 1870, Wnen
the law was put into operation, this
statement taken by itself creates an
entirely false impression. The re.
tirement bill was drawn and all VI
it's computations made upon the cost
OF living conditions as they existed
in 1916. True the Dill was not m
troduced until June Is. 1919. but
the fact remains that the actuarial
computations and the amounts OF
retirement compensation 10 De palo
were the same figures that were
used in the original draft OF the
bin made in 1916 after a most care
fiI study of cost Of living figures
At that time. The actual operation
az the retirement act was begun N
August. 1920, and the ded"rtion
from the salaries of Civil Se-'Fice
Employees began at that time.
sS5, 900. 900 in Fund.
.The amount in the fund June
90. 1924, was $33,5s6.193.19. That
Amount has steadily increased until
- fhoro ia. well over
S3S 900 900 in the fund This amount
has been deducted from the salaries
of civil service employees, the Gov
ernment having contributed not one
cent to it except as it has used this
fund for other Government purposes
and paid interest as it would pay
ur,on any other form of borrowed
money. which interest has been COW
ered back into the fund. In other
words. this il to the last nickle the
Snnployes' money. There are ap.
uroxfmately 400, 900 contributors to
the fund. l confess that have
discovered somewhat to my amaze
Tl1ent that the exact number cannot
be ascertained. The total number
Of civil service employees is some
thing over 415,000, but there ap
pears to be no record anywhere al
TO the exact nuiliDSI pdJih ihCN
the fund.
"There were on the retirement
rolls June 80, 1924, 10,54S so-calleC
pensioners. Since August ], 1920
ut to June 80, 1924, 2,466 Govern
uIent employees had retired and died
the details being as follows:
1.-TWO hundred and seVenty-fou
died in 1921.
"Six hundred and fourteen die'
b: 1929.
Seven hundred and forty-fiv
died in 1923.
flight hundred ~and thirty-thre
died in 1924.
$50 you will see that the dealt
rate among these pensioners is yer.
high, probably much higher thai
was considered in the actuaria
figures upon which the draft of tn
law was based.
Comparative Figures
Now let >us see what IL actuall,
happening. To make the situation
more readily understood, l hav
caused our cost of living figures t
Be recast on the basis of the pun
chasing power OF the dollar in l9l
and want to submit to you the 70
lowing statement as the result.
Based ON Purchasing Power Of q
Dollar In 1915
Rseeiving 1916 1924 No
sssss :a;i ' iss- $3.50 ,l1s.ss ss s..Ssss IT;