The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-12
SECURITY BILL
TO END MISERY
IN NEXT SLUMP
Discharged Workers Will
Get 10 Weeks Pay
Under Setup.
BY JOHN A. REICHMANN
United Press Staf Correspondent

WASHINGTON, Aug. 12-When
hard luck hits family in 1910 the
New Deal hopes it will be a diff
ferent story than it was in 1890.
The hope is based on the economic
security bill passed by Congress and
awaiting President Roosevelt's
signature.
Those in charge of the creation
of the measure like to think of 1t
in the terms of the young printer
with an aged father who feels the
grip of hard times. The printer has
worked steadily for at least two
years.
But, one day in 1910, he receives
the blue slip of unemployment with
his s45 weekly pay check as he leaves
his plant In 1880, with many
printers losing their jobs and no
new jobs appearing, this 30-year-old
father of family, would have
faced almost hopeless despair.
How Plan Would Work
In 1910 the news is bad enough.
But it has its ray of hope. For
during the past years his employer
has been contributing from l to 3
per cent of his pay roll of an unem-
ployment insurance fund and the
jobless man knows that there will
continue to be pay check of SIS a
week for Is weeks from the fund.
The Federal government does not
contribute to the fund.
For that length of time, he will be
sure of fuel in the basement and
food in the larder.
If times are not too bad ne may
find another job. The SIS payments
would cease then. With security
legislation, the New Deal hopes
times won't be as bad as they have
in the past.
How Father Is Helped
The picture painted by the secur-
ity experts including an aged father
in the family. He receives only $25
week as a factory worker. If he
loses his job at the same time, he
also will receive unemployment in
Surance 1t will be so per cent OF
his salary on the basis of one week
for each four he has worked in the
previous two years. If he has worked
steadily for the two years he will
receive $3.50 weekly for Is weeks.
The Federal government contrib
utes only to administration of the
unemployment insurance plan. Each
state must set up its own plan, but
employers must contribute a per-
centage of their pay roll figure.
Carrying the printer still farther
along in life, this is how he would
benefit from the old-age pension.
Also Entitled to Pension
If he began contributions of 3 per
cent of his salary to the unemploy-
ment insurance fund when Is years
old and continued them until he was
65 on the basis of his $45 salary,
he would then retire and would re-
ceive $71.25 a month for the rest
of his life
If, on the other hand, he died at
the age of Is, after contributing for
20 years, he would leave his family
from the old age fund, 312 per cent
of his wages for 20 years. 1t would
amount to the tidy sum of $2198
The government does not contribute
to the pension fund, either. 1t is
sustaining.
Those in the lower wage brackets
will not receive as much as the
model printer it was pointed out
but they will be eligible for bene-
fits on the basis of their state laws
Under proposed model state plans
both the Federal and state govern
ments would contribute To encour
age such state legislation, the Fed
eral government will match states
dollar for dollar up to SIS month
per pensioner.
Health Care Provided
The states could pay more than
this amount if they see fit. Thus
the benefits to workers in the lower
brackets will depend on the plans
set up by each state.
In addition aid will be given, or
the printers death, both to his
widow, if necessary, and to his de-
pendent children. Health care will
be given to mothers and children
and the latter will be eligible fol-
dependency payments.
The Federal government will pay
one-third of state allotments to care
for dependent children but the first
child can receive a maximum OF
S18 a month and each additional
S12 a month. These benefits will
depend on the state plans.