Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-09
PENSION MEASURE
SAFE, SAYS b0RAH
Doubts High Court Ruling
Will Block Action on
Security Bill.
BY the Associated Press.

BY the Associated Press.
Senator Borah, Republican, Of Idaho
Joined today with those holding that
the Supreme Courts recent decision
wiping the railroad pension law OH the
books would not block action on the
administration social security program.
II don't see that 1t Is going to put
up any bars for the social security
legislation" Borah said. Administra-
ton lawyers previously had declared
their opinion that the decision was
not a blanket injunction against all
social legislation.
Borah's expression came as the
Senate Finance Committee. acting on
administration advice, started ex-
ecutive consideration Of the social
program with a view to reporting 1t
to the Senate by the end Of the week,
If possible.
Many proposed changes In the ad-
ministration bill were before the COM
mittee. One of the iberalizing pro-
posals, advanced by Senator La Fol-
lette, Progressive, Of Wisconsin, would
raise the old-age benefits. The present
bill says the Federal Government
would advance SIS a month If the
States matched 1t. La Toilette had
not decided whether he would ask for
a special increase, say to $40 limit.
or seek to remove the limit altogether.
Would Give States Powers.
La Toilette also planned to ask
for a change in the unemployment
insurance program to permit States
to enact laws for company reserve
plans If they chose.
A Wisconsin law, now in effect,
permits companies to set UP unem-
ployment reserves individually, and
many millions of dollars have been
collected under it. II the present
proposal for Statewide pools should
go through La Toilette said it might
require refunding all the money COL
lected in his State.
Chairman Wheeler Of the Senate
Interstate Commerce Committee pre-
dicted today that the Supreme Courts
rail pension decision would increase
agitation for public ownership of rail-
roads.
He said the courts majority opinion
limits the rights Of Congress over
interstate commerce." and aSSailed
the reasoning behind it as "unsound.'
This decision will make q mil
lion railroad employees realize that
the only way they can get q pension
is through Government ownership. u
Wheeler said.
Both the White House and Capitol
yesterday received legal opinions meas
uring the security bll-with its old
age pension and unemployment in
surance taxes-by standards set in the
Supreme Courts invalidation of the
railway retirement act. President
Roosevelt held confidential for study
the views given him by Attorney Cen
eral Cummings.
Distinction Is Seen.
But Angus D. MacLean, assistant
solicitor general, told the Senate FL
nance Committee the rail decision
would not upset the security program
because the bill was framed on diff
ferent constitutional grounds than was
the railroad law.
After this testimony Chairman Har-
rison said the committee would
bring consideration Of the measure,
section by section. today with the
hope Of reporting it to the Senate by
the week end.
The Justice Department view, how
ever, was challenged sharply in some
quarters. Senator King, Democrat. OF
Utah, said he still felt sections Of the
security bill were fatty unconstitu-
tional and strong factions within the
committee, including other Democrats
were preparing to fight for important
notifications.