The Washington times., 1935-01-14
GOVERNORSR RAP
TOWNSEND'S 8
$500 PLAN
Survey Shows States Favor
Paying $50 a Month, With
SIS From U. S.
Copyright, 1885, by international
News Service)


News Service)
AS President Roosevelt moved
toward final decision today on his
social security program, the fol-
lowing developments cleared up
wide speculation over the course
OF old-age pension legislation:
IA national survey showed
Governors overwhelmingly
against the Townsend $200-a-
month old-age pension plan.
2.-The same survey disclosed
that at least SO States will pro-
vide old.age pensions with Gov
ernment aid.
3.-The Administrators old
age pension plan, subject to the
Presidents final decision, is
based upon $50 a month for
those over IS, with the Govern
ment contributing SIS month.
Result Of Survey
The national survey, made by
Representative Kent Keller (DO
OF Illinois, recorded 20 Of 80 Gov.
ernors answering thus far in ia
vor of old-age pensions. The ma.
jority favor $50 month for those
over IS, and the Townsend plan
Is ignored. Representative Keller
said
mot a single State has fallen
for the high rates illustrated by
the Townsend plan. All look at
the matter of pensions from a
reasonable point of view. Most
of the Governors are opposed
TO making pensions questions of
pauperism, but recognize pen
Sions as a matter of justice to
those without ability to earn a
living. They must of necessity
limit the amount paid to that
which can be paid nationally
and continuously. The Cover
nOrs generally favor $50 a
month. The spirit indicates
that with return Of prosperity
the amount would be raised"
Secretary of Labor Perkins rap
ped the plan of DR.. Francis Town
send, the Long Beach, Calf,
physician, as economically and
socially unsound" despite his
claim to 24,OO0,000 signatures.
With % states having old age
pension plans, many imperative,
the following were recorded as
favoring pension laws: Florida
for national law; Maryland,
Minnesota, now has county plan;
North Carolina, Oklahoma, Ten
nessee, Vermont and West Vir-
ginia. New Hampshire plans a
law if State constitutional diff
culties can be overcome.
Representative Keller said the
Administrations plan embraces
the following, subject to presi-
dental change:
Pensions paid by States to
those over IS.
Federal Government to pay SIS
q month and let States pay pen
sion of $50 a month or more.
Government contribution may be
on 1925 basis for two or three
years.
Labor Department probably
will supervise, States administer,
but their laws must meet Federal
standards.
$3.50 Advance
Government $3.50 advance to
be paid out of Treasury.
Administration expects the cost to
aged persons.
Representative Keller said the
administration expects the cost to
be less than $100,OOO,OOO until
State legislatures pass laws this
winter and get new pension plans
in operation. The Federal plan,
on a $3.50 basis, would cost prob
ably $125 100000 a year when in
full operation.
Industrial pensions under the
security plan would run up to
$40 a month, he said.
Secretary Perkins proposed a
4 per cent payroll tax for un.
employment insurance. It had
been understood that the Presi.
dent would recommend 3 per
cent. She also opposed workers
contributions, except for addi-
tional benefits, and said States
would decide the question.