The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-25
.TOWNSENDITES
/. EXACCERATE IN
PENSION CLAIMS
0Id-Age Arguments Are
Sincere but Loose,
Flynn Says.
This is the third and last Of a series
of articles on the Townsend old-ags
pension plan.
BY JOHN T. FLYNN

BY JOHN Il. FLYNN
Copyright, 1886. by NEA Service. Incl
WASHINGTON, Jan. 25.-The
$4,000, 100000 tax would be a ire
mendous discrimination against all
goods made wholly in America.
Thus a suit which was a home
product from the sleeps back to
the final garment would have TO
bear a long series of 2 per cent
taxes on a numerous series of
transactions. But a suit made
abroad and imported would have
to pay only on the one or two
transactions which took place in
America after its arrival.
The Townsendites put the cost
of their plan at about $4,000 600, 900
-S2400 a year to each of not more
than 100000 people over go. About
100000 others will be exempt fo-
various reasons.
Fantastic Figures"
But they insist, and with some
justification, there will be an off
set against this heavy charge. One
of these offsets will be, they point
out, the saving of $4,000, 600, 600
the cost of supporting 775,OO0 in
mates of poorhouses.
Where these fantastic figures
come from I do not know. The last
enumeration of people in poorhouses
by the Census Bureau was in 1928.
There were then only about 51,134
persons so years of age and over in
almshouseS.
1t is fair to assume they did not
cost the people more than $500
each. But if we put the amount at
$1,000 each and if we assume the
number has doubled, the total cost
would not exceed 100000, 900, which
is very far from $4,000, 000,O 900. 1t will
be seen, therefore, that this offset
is of no Importance.
Error in Arithmetic
The TownSendites assert that. as
old persons receiving pensions must
withdraw from work, the jobs they
vacate would be available for
younger men and women.
1t is difficult to get precise figures
on the number employed. In 1890
the number of persons go years and
over and gainfully employed was
about 100000. Many, however,
were proprietors, professional men.
Here the advocates of the plan
make an error in arithmetic. They
subtract from 100000 persons
over so, some 100000 who
would not receive pensions be-
cause of criminal records or be-
cause they have incomes over
$4,000 year or will not give up
work. Having subtracted them
once, they can not subtract them
again. They can not subtract all
of the employed from the remain
der of 100000.
Persons so years and over with
criminal records would be about
100000. The gainfully employed
with incomes would be about l.
100000. These are included in the
100000 old persons with jobs. AS
they would not get pensions and
give up their work, the number who
would quit work would be at the
outside 100000.
Job Claims Exaggerated
Are we to assume that the retire
;ent of these 100000 will create
that many jobs? Some 100000 of
these are farmers. Of course, they
do not hold jobs at ALL Their re-
tirement would not make jobs for
anybody-merely leave farm va
cant for some other farmer to buy.
What is more, many of those left
are not employees. They are propri-
etorS of their own small establish
ments-little stores, service enter
priSeS of various sorts. Their retire
ment might clear up that particular
business, perhaps, but would not
create employment.
1t is not possible to arrive at a
figure in excess of a million Jobs
which would be made accessible to
younger persons. This is something.
but it very far from the 5000 900
jobs which the Townsendites claim.
These are not arguments against
the fundamental duty of society to
provide for its aged population. But
they have an important bearing on
the benefits which will result to the
balance of society from the program
and show the looSenesS of the ar