The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-09-17
Social Security Issue to
Make Call Inevitable.
Is Understanding.
STILL FEARS UPRISING
Chief Executive Is Keeping
Silent to Bar Revolt,
Say Observers.
BY JAMES DOSS
Times stan Writer

Gov. McNutt is contemplate
ing calling a special session Of
the Indiana General Assem-
bly,, probably in late Novem-
Der and early December, it
was reported this afternoon.
The Governor steadfastly has re-
fused to affirm or deny that a spe-
ciai session Will be called this year
because Of the Federal social secur-
ity program, but is said 10 have adj
mitted to several of his advisers
that a session was inevitable
He Is understood TO have adopted
a policy Of keeping quiet until the
last minute so administration
forces will not have time to agree on
political legislation that might be
embarrassing to the McNutt forces
in the 1886 campaign for Governor.
Can Not Bind Assembly
Under the Indiana Constitution.
Gov. McNutt can not bind the as
semblymen to any set legislative
program. The last session saw the
introduction Of a bill to take the
nomination for Governor out of the
convention and place it in the
primary.
The measure was fought Bit
terly by Administration leaders who
much prefer status quo because
they can control a convention by
Judicious use of the state admin
lstration patronage power.
Forces in both houses in the last
session friendly to United States
Senator Frederick Van Mugs were
behind the primary bill. The Sen
atOr repeatedly has insisted in re-
cent statements that he would not
stand for convention control
through patronage.
Inevitable for Two Reasons
1t would require but little i'm
petus for the VanNuys bloc in the
Senate to revive the primary move
ment at a special session, al
though Administration leaders
claim they can defeat it.
Although the Governor can not
bind the session. it will be called. Of
course, for social security legisla-
ton. 1t is regarded as inevitable
for two reasons.
The present state old-age pension
setup is considered important OBJ
Stacle to participation in the Fed
eral program. Under the Indiana
law, the various boards of county
commissioners dictate the size Of
the pensions.
The state reimburses the counties
for half of their pension expendi-
lures up to $3.50 a person, making
the total pension SIS.
States Hands Are Tied
Niggardly pensions have been paid
in many counties. Thus, the state
finds itself in the enviable position
of having balance of about S8O00,-
600 and being willing to go along.
on old-age pensions, but with its
hands tied by the counties.
The law probably will be changed
to permit the state to pay the entire
pension and thus get the maximum
SIS matching pension offered by the
Federal government.
Too. the residence requirement Of
the Indiana law need to be changed.
1t fixes a 15-year residence in con-
traSt to the more liberal Federal
provision Of five years in the last
nine.
Another compelling reason for a
special SESSION, according to obsery-
ers, is the start of the unemploy-
ment insurance tax collections in
January, 1886.
30 Per Cent Credit Permitted.
If the state does not enact an I'M
employment insurance law, the tax
collected from employers of eight
or more persons would go into the
Federal treasury. However, the
Federal government permits a 30
per cent credit for payments into
a state fund
Thus in addition TO the altruistic
arguments for a state system, there
is the additional motive of keeping
the money in the state.
The only guide for probable IN
employment insurance benefits is
the Department of Labor estimate
that the minimum should be $3.50 a
week for IA to 20 weeks. Social
workers contend this amount should
be doubled where there are denend-