Evening star., 1935-06-07
URGED
|. IN SECURITY BILL
AItmeyer Tells Welfare Con-
ference States Should Play
Major Role.
Special Dispatch to The Star.

MON REAL, SRueDec, June T. In
the light of the recent Supreme Court
decision regarding the N. r. A., it is
very wise that the social security bill
now being considered by Congress
leave the matter of extent of employe
contribution and amount and terms
of payment of compensation pay
ments for unemployment TO the States
for flexible handling according to
local conditions and needs" said A. J.
Altmeyer, Assistant Secretary OF the
Department of Labor, Washington,
D. c.. and chairman Of the technical
board of the Presidents Committee on
Economic Security, speaking here to-
day at the opening session of the two
day meeting of the American Public
Welfare Association.
The constitutionality OF the social
security bill is beyond question" added
Joseph Harris, also OF Washington,
assistant to DR.. Edwin E. Witte, eX-
ecutive director of the Committee on
Economic Security, speaking in his
| chiefs place.
The social security bill Is based. in
| its unemployment compensation pro-
visions, on the power of Congress to
| levy and collect taxes. Its power to
make grants in aid to the States has
/ been we'll established for over 100
years. The proposed pay roll taxes
! are not penalties. The Supreme Court
/ has never held a real tax levy 10 be
unconstitutional. The pay roll tax is
an excise tax within the powers
granted by the sixteenth amendment
TO the Constitution.
JObIess Trend Traced.
DR.. Altmeyer said further: ''Unem-
ployment, sickness and accident, OLD
age and premature death are the
I chief causes of social and economic
insecurity. They have been dramatized
by the depression, but they are always
with us. Even in average normal times
per cent of the industrial workers
are unemployed. In the slack year OF
1893 more than $4,000 WOrkmen were
killed at work. The annual wage loss
from sickness for wage earners aver
/ ages 5000 000000. Half the people Of
I the United States over 65 years Of age
are dependent upon public or private
relief funds or upon near relatives.
At present over 10000 people over
IS are dependent upon relief funds.
| This number will increase actually
and proportionaIelv to the population,
| and industry cannot absorb even all the
| able bodied old persons. Ten per cent
| of the families on relief in the United
I States have no potential bread
winner except the mother. Private
systems Of unemployment. sickness
and old-aee insurance cover only
or 2 per cent Of the employed per-
sons. The expenditure Of s15000O 600
a month for public and private relief
throughout the United States shows
the inadeQuacv and insecurity of the
present system, These conditions de-
mand a more adequate and equitable
procedure. The social security bill
will go long way toward meeting
that need
1T cannot accomplish this all by
itself. however Greater prosperity is
necessary. The social security bill
will afford protection against the
larger economic viciSsitudes of good
and bad times in the future. 1t is
only part of the administrations pro-
gram. The work-relief act is more
important for the immediate situa-
ton. but it will not solve the prob
lem of individual security in the long
/ run, toward which the social security
bill is aimed All the provisions of
that bill are Complementary.
All Hazards Not Met.
( Mr. Harris added: The social Sc
curity bill does not consider sickness
insurance. The committee on eco
! nomic security has indicated that
those proposals are to come later.
The social security bill does not
meet all hazards or all occupations.
+ 1t still leaves and will leave need for
public and private relief TO meet in
/ dividual and exceptional situations.
There is danger of demand that
/ old-aee pensions be extended to peo-
pie Of all ecoromic classes, regardless
: of need. The provisions of this bill
limited as they are, for contributory
/ old-age annuitieS are. therefore espe-
cially important. Their cost to the
public treasury will be less than half
/ the cost, in the long run, of straight
old-age pensions
| 1T has been stated that the cost
Of this bill by 1850 would be SAL
600, 100000. Only s12 900, 900 900. how
ever, would come from taxes on en-
ployers. This cost is too small. if
anything. In the same time. wage
losses on this basis would be $75.000.-
100000"