Evening star., 1935-06-16

Board a branch of the Labor Depart
ment, and giving the Children's Bu-
reau Jurisdiction over the Federal
grants for child welfare.
The only committee amendment
postponed until tomorrow was the new
title to allow individual citizens to pur-
chase bonds from the Treasury to pro-
vide themselves with old-age annuity
insurance This was intended to bene-
fit farmers, professional men or others
who would not come under the Fed
eral contributory old-age system for
those regularly employed in industries.
This old-age annuity bond feature is
facing some opposition.
Tariff Revision Asked.
Senator Vandenberg, Republican, of
Michigan, raised new issue yesterday
when he proposed an amendment to
provide for an automatic revision of
tariff rates to protect American indus
tries from the effects of the increase
in the cost of production in this coun-
try resulting from the social security
pay roll taxes.
Pointing out that by 1945 these pay
roll taxes will have added about 81
000000,000 to the cost of production,
Vandenberg said some arrangement
for adjusting tariff rates would be
essential If American industries are to
be protected. He said the reason a
Nationwide Federal nay roll tax was
proposed as the means of inducing
the States to enact unemployment
insurance laws was TO protect States
enacting such laws from the trade
disadvantage they otherwise would
suffer if neighboring States did not
enact insurance laws. He argued
there probably will be as much need
to protect American industry as a
whole in international trade, by re-
vising tariffs, after the social security
taxes have been in operation for a
number Of years. Chairman Harrison
promised to study the Vandenberg
amendment over the week end.
The Senate also will be called on
tomorrow to vote on Senator Huey
Longs proposed heavy tax on fortunes
above 81 TOO, 900 to obtain revenue to
place the cost of the old-age gratuitieS
on the Federal Government to make
larger numbers eligible for pensions
by lowering the age limit.
While Long is proposing this far
reaching liberalization of the bill to
carry out his share-the-wealth doc
trine, counter move probably will
be made in an opposite direction to
narrow the scope of the bill. Senator
Hastings, Republican, of Delaware
I~a iYHf fnI pn aTs1C 1n nnV
pulsory, ccntributory old-age annuity
section and the plan of inducing the
States to adopt unemployment in
surance by the medium of Federal
pay roll tax as unconstitutional. Sen
ate leaders belive, however, the bill
will pass in substantially its present
form.
Blind Pension Broadened.
Senator Wagner Democrat, of New
York, author of the bill had several
amendments adopted yesterday to
broaden the scope of the blind pen
sion features.
In support of the Senate's action
in making the separate company re-
serve plan of unemployment insur-
ance optional, along with the pooled
fund system, Senator La Toilette,
Wisconsin progressive. placed in the
record summary of the two systems
His State, the first to adopt unem-
ployment insurance, has the individ-
ual company reserve plan, with re-
ductionS in the employers contribu-
ton when he stabilizes employment.
Asserting that each system has GER
tain advantages, La Toilette said the
assumption that the separate reserve
account is inferior to the other
method is not based on any actual
experience, but Is only theoretical.
Pointing out that the prevention of
unemployment is more important
than merely paying insurance after
unemployment occurs, La Toilette
emphasized that the Senate amend
men will encourage industries to
stabilize work by shortening hours
when business becomes slack, instead
Of laying of men.
Starting at 8 o'clock tomorrow, de-
bate on the bill will be curtailed. with
each Senator limited to 30 minutes
on each amendment and As minutes
on the bill.