Evening star., 1935-07-16
SOCIAL SECURITY
BILL IS REPORTED
WITH CHANGES
Clark Private Pension Sys.
tenn Goes to House for
Decision.
MEASURE SETS UP
SEPARATE AGENCY
Pay Roll Tax to Apply to EN-
ployers of Eight OF More Per-
sons-Grants Are Modified.


After nearly a month of delibera-
ton, House and Senate conferees this
afternoon agreed on all differences in
the far-reaching national social Sc
curity program. except the Clark
amendment to preserve private retire
ment systems, which will be taken
back to the House for further instruc-
tionS
Agreement was reached on all the
other main controversies as follows;
The Senate amendment was agreed
to allowing States to adopt the sep
arate company reserve plan of unem-
ployment insurance if they prefer that
to the Statewide pooling of all pay
roll taxes.
Provides Reduction.
The Senate amendment authorizing
reductions in pay roll tax for unem-
ployment insurance to employers who
stabilize work and keep their men
steadily employed.
A compromise vas made under
which the Unemployment insurance
pay roll tax will appl, to employers
of eight or mora pGlSonS, instead Of
the House provision OF 10 persons or
the Senate provision CT four persons.
In this connection, the Senate bill
also provided that H., tax would apply
only to the salaries OF those who work
for l3 weeks or more during year,
but the agreement ft flows the House
provision of 20 wee.;s OIL more.
The Russell amendment directing
the Federal Government to make
grants up to SIS month for the next
two years to citizens of States which
have not enacted old-age pension laws
to match the Federal money, was
modified to apply only to those States
which have constitutional barriers
against levying State taxes for that
purpose. 1t was further provided
that in such States money spent by
cities and counties for old-age pen-
sions could be counted as matching
the Federal grant.
Independent Agency.
The House was successful III having
the Social Security Board made an
independent agency instead of a
branch of the Labor Department.
The Senate amendment authorizing
Federal grants to match State pen
sions for the blind was adopted and
liberalized to eliminate the require
ment that persons be permanently
blind. 1t also eliminates any age
limit on persons entitled to blind
pensions.
The Norbeck amendment authoriz-
ing pensions for Indians was knocked
out.
The fight over the Clark amend
ment Is not over. Even If the House
instructs its conferees against the
adoption of this amendment, indica-
tions are that supporters of the
in the Senate also will
make every effort to stand firmly for
the amendment. The Clark proposal
was adopted in the Senate by the de-
cisive vote of 81 to 35 and there is
almost certain to be a battle against
yielding on this question. The Clark
amendment authorizes the Social Sc
curity Board to exempt from the pay
roll taxes on employers and employees
for old-age insurance If the board
finds that an industry or company is
a private retirement plan
equal to or better than the Federal
insurance system.
May Meet Again.
The conference report will 60 to the
House first for approval of the agree
ments on all other parts of the bill.
A separate vote probably then will
be taken on the Clark amendment.
The partial agreement will then 90
before the Senate for ratification. If
both the House and Senate adhere to
their differences oyer the Clark
the conf frees would have
to meet again on that issue.
Several of the agreements reached
by the conferees on the unemploy-
ment insurance section have an i'm
portant bearing on the District un-
insurance bill, such as
the right of States or District to re-
duce taxes as credit for steady en-
ployment, the right to adopt the
separate reserve system, instead of
pooling all employer contributions and
between eight persons as the standard
for applying the tax. AS it came from
the House the local bill did not allow
any reduction in tax for stabilization
in employment and required the pool
system, with four persons as the
standard for applying the tax. The
Senate District Committee has been
waiting for the national bill to be
completed.