Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-10
Three Board Members Will
Be Named to Supervise
Huge Program.
PLAN WILL COST U. S.
$4,000, 900 FIRST YEAR
Many Phases of Measure Being
Studied to Be Put Into Effect
Immediately.
BY J. A. O'LEARY.

lie IldIlOIldl SOCldl SECURITY Mll ID
expected to become law by the sigma
ture of President Roosevelt early next
week, setting in motion a broad pro-
gram of old-age benefits, unemploy-
ment insurance and variety of Fed
eral grants to the States for public
welfare purposes.
The first step will be to appoint the
three members OF the Social Security
Board, which will function as an in
dependent agency in supervising OPP
Grafton of the vast program through
out the country. Early reports have
been to the effect a woman will be
appointed to one of the places.
After a Seven-month journey
through the legislative mill on Capitol
Hill. the security measure was COM
pleted late yesterday in substantially
the same form in which it was drafted
il January by administration forces.
The last move came when the Senate
yielded to the House on the dropping
for the time being of the Clark private
pension amendment to the old-age in
subcommittee have been named, how
ever, to work out some method of pre-
serving private retirement systems at
the next session of Congress.
s95,OOO,OOO Is Needed.
Before Congress adjourns, 1t will
have to put through an appropriation
bill to make available the S95, 0000
needed for the first year to cover those
features of the security program call
ing for Federal grants to the States
to help them carry on State welfare
work. These features of the program
start as soon as the money is avail
able, and cover the following subjects
Old-age--States that give old-age
assistance, or pensions. to needy per-
sons IS or over will be entitled to have
their payments matched by Uncle
Sam, up to a maximum of SIS per
person a month. In other words. the
Federal Government will pay half Of
a $50 monthly gratuity to unemploy-
ables. The Federal appropriation fol-
the first year will be $40, 750,000
Blind-As in the case of needy aged
the United States will match State
pensions to the blind up to SIS a
month. For this year the Federal
appropriation will be 100000.
Aid to dependent children-For this
purpose. sometimes called mothers
pensions, the Federal Government will
give States grant equal to one-third
Of the State appropriation. For the
first year it will require S24, 100000 in
Federal funds.
Public health-The bill authorizes
So 900 900 to be distributed annually
to the States on the basis of popula-
ton, special health problems and
financial need.
Other Welfare Activities.
Other welfare activities and the
amounts the Federal Government will
put up the first year are: Maternal
and child health work. s3,800,0O0;
crippled children, 50 $50 900; child well
fare, 81 100000, and vocational reha-
Utilization, $841 900.
The foregoing features Of the bill
are in the nature of additions to the
policy of granting Federal subsidies
to the States for various purposes.
The other two main phases of the
bill deal with the future security OF
millions of employees in industry, and
take the Federal Government into
new fields of legislation.
One is the Federal contributory
old-age insurance plan, to be financed
by pay roll taxes on employees and en-
ployerS, starting in January, 1887
The tax starts at per cent on each
group and increases gradually to 5
PER cent from each after l948 EN-
ployes would be retired at IS on bene-
fit payments ranging from $40 to S85
month, according to wages and
length of service. AT the next session
of Congress efforts will be made to
work out Senator Clark's proposal to
exempt from this Federal pay roll tax
retirement plan any industry that
operates a private system OF equal or
greater benefit.
Weekly Allowances.
The other innovation is the Federal
pay roll tax on employers, to induce
the States to enact unemployment
insurance laws, for the payment of
weekly allov noes to men laid off
when work is slack. The States are
left free to work out their own laws,
based either on Statewide pool fund
CT the keeping of separate company
reserves. Employers would be ex-
cused from 80 per cent of the Federal
unemployment tax if their State levies
that .uch for a State unemployment
law. This Federal tax starts next
y at l per cent of the pay roll and
increases to per cent in 1888.
The Federal unemployment pay roll
tax applies to employers of or more
persons, but States may fix a smaller
number.