Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-14
SECURITY PASSAGE
LIKELY NEXT WEEK.
Senator Hastings Charges
Bill Discriminates
Against Youth.
BY j. A. O'LEARY.

the Senate early Next week. probably
Tuesday, appeared likely as debate on
the administrator measure got I'M
Ter way this afternoon, with Senator
Hastings, Republican, Of Delaware
contending the compulsory old-age
pension feature dlscriminates in favor
Of those near the retirement age and
against the younger generation.
Taking the floor after Chairman
Harrison Of the Finance Committee
mai explained details of the Dill and
urged early action, Hastings gave
illustrations to show how mucn would
be paid into and drawn out Of the
old-age fund by those who are within
5 or 10 years If retirement, as COM
pared with young men just beginning
to work.
ST am citing these cases only to
show that the way you make up for
the older man of today is by Furnishing
the youth Of the Nation" Hastings
said.
Challenged BY La Toilette.
This argument was quickly chal-
lenged by Senator La Toilette, Wis
consin Progressive. who replied:
THE shedding of tears about the
burden placed on the youth can be
largely forgotten when you remember
that without this plan the youth Of
the country usually have to carry this
whole burden without any assistance"
Declaring that the development of
industrial civilization has presented
the pressing problems which this leg
islation seeks partly to meet" Har-
rison summed up his plea for early
passage as follows:
1T deals with matters which other
countries have already dealt with and
from whose experience we can be
guioed. 1t will not commence with
unwise speed, Eut rstner will be a
gradual development, proceeding care
fully and surely for the goal which is
now far distant. Further study. be-
yond that already given. would avail
US little, and The need for de-ay in
this legislation does not exist, as the
provisions of the measure itself pro-
vide for no hasty action which might
have retarding effect upon recovery"
Hastings regards the compulsory
old-age annuity and unemployment
insurance plans as unconstitutional.
There are also pending a series of
other amendments, indicating there
will be considerable discussion before
the bill is brought to vote.
Harrison explained the essential
features of the program, which in
cludes: Three distinct plans for pro-
viding assistance in old age, unemploy-
ment insurance and Federal grants TO
the States in pensioning needy blind
persons, home care for dependent chill
dren. maternal and child welfare &C
Invites, help for crippled children and
public health generally.
Direct Grants to States.
The first old-age pension section
makes direct Federal grants to the
States to aid in paying monthly
gratuities to old persons who. because
of age, will not be able to build up
their own old-age reserves. The
Federal Government would match
State pensions of this kind up to SIS.
In other words, Uncle Sam would
pay SIS toward a $50 pension, with
the State free to pay as much more
as it desires.
The second old-age plan is in
tended to enable employees and en-
ployers to build up, through a joint
tax. a fund to pay retirement an
nuities to those still at work This
plan would begin to operate in 1912,
to enable employed workers to retire
at IS on an annuity determined
primarily on the basis of salary The
theory of the legislation Is that. as
the years go by and those now at
work build up their pension reserves,
there would be a corresponding re-
duction in the load the States now
bear in paying gratuity pensions
under the first plan. It is this sec
ond plan that Hastings will move to
eliminate, but the administration
leaders predict it will be retained in
the bill.
The third old-age feature was
added in the Senate Committee and
is intended to allow farmers, profess
sional men and others not regularly
employed in industry to purchase old
age annuity insurance bonds from
the Treasury. A fight against this
section is brewing in the Senate.
Tax on Employers.
The unemployment insurance sec
ton seeks to induce the States to
enact such laws by levying a Federal
pay roll tax on all employers of four
or more persons and then allowing
the employer to deduct contributions
he is required to make under a State