Evening star., 1935-06-18
SENATOR GEORGE
DOUBTS VALIDITY
OF SECURITY BILL
ConStitutionaIity Questioned
as Final Vote Draws
Near.
CLARK AMENDMENT
GAINING STRENGTH
Would Permit Industries to Keep
Own Pension Plans-Long's
Rider Shouted Down.
BY J. A. O'LEARY.


AS the administrations social Sc
curity bill approached a final vote in
the Senate this afternoon, its consti-
tutionality was Questioned by Senator
George, Democrat, Of Georgia.
Supporting an amendment by Sena-
tor Clark, Democrat, o. Missouri, to
allow companies to retain private re-
tirement systems that are at least
equal to the Government plans,
George inquired:
Why strike down private pension
plans in industry in passing a bill
which may not pass the muster of
the courts?"
George referred particularly to those
sections which use the taxing power
TO bring about establishment of old
age annuity and unemployment in
surance.
Clark Amendment Redrafted.
u know the courts will go a long
way in upholding legislation of this
kind. and l think they should"
George continued, but if the courts
look through the mere form of the
bill and consider the purposes, no
lawyer will say its validity is not
open to serious question
Clark said his amendment has been
redrafted so there is no way in which
an employer would benefit by operat-
ing private plan in preference to
entering the Government system, and
that the only advantage that might
result from allowing private plans
would be to enable companies to pur-
chase larger annuities for their work
erS if the general age of the employees
made a favorable rate possible. Clark
also pointed out that the bill exemptS
Federal employees from the proposed
system, presumably because the Gov
ernment already has a retirement
plan for its own employees.
The Clark amendment apparently
has picked up support from Senator
McNary, Republican leader, and the
debate indicated many Democrats also
we're sympathetic to the proposal.
Clark Points to Exemptions.
Administration leaders sought to
ward of the amendment with the
argument it would endanger the bills
constitutionality, but Clark quickly
challenged this by asserting there we're
similar exemptions already in it.
His amendment would exempt from
the proposed 6 per cent pay roll tax
against employers and employees those
companies which had private systems
equal or better than the public plan
and which were approved by the
social security board to be created
under the bill.
The way was cleared for speedy ac-
ton on the bill when the Senate late
yesterday shouted down the plan Of
Senator Huey Long, Louisiana Demo-
crat, who tried to make the security
bill a vehicle for his Share-the-wealth
program by proposing heavy capital
levy tax to raise enough revenue to
finance the whole security program
without State aid.
A chorus of noes" defeated Longs
program without a roll call, after a
short but spirited debate, in which
Senator Millard E. Tydings. Maryland
Democrat, subjected Long to a rapid
fire examination on the detailed
workings of his tax plan.
Bill To Go To Conference.
AS soon as the Senate passes the
measure, it will go to conference with
the House for final action on Senate
amendments, the most important Of
which are: A new section authorizing
Federal grants to States which pro-
vide pensions for the blind and allow
ing States to adopt the separate COM
pany reserve system of unemployment
insurance, if they desire. AS passed by
the House the bill made no provision
for the blind, and required States to
adopt the Statewide pool system Of
handling unemployment insurance.
Representing one of the most COM
prehensive social security programs
ever undertaken by any country, the
bill in its present form authorizes di-
rect appropriations of $94 4,49l 900 for
Federal grants to the States for a
variety of welfare purposes during the
next fiscal year. In addition it sets
(See SECURITY, Page 80