The Washington times., 1936-12-10
DANGER TO us.
SEEN IN PLAN
0FT0WNSEND

Operation Of the Townsend old
age pension plan would wreck
the financial structure Of the
country" the special House COM
mittee which investigated the
movement reported to Congress
yesterday.
Characterizing some Of the lead
ers Of the movement as men OF
VIGOROUSLY bad character" the
committees report specifically ex-
cepted DR.. Francis E. Townsend,
California physician and founder,
and Robert E. Clements, CO.
founder, Of the movement which
the committee branded "econom-
ically unsound."
Dissent Filed
Under the Townsend plan every
person over so years old would re-
ceive 5000 per month, the money
to be raised by a tax on all trans
actions.
Representatives Collins (RO
and Tolan Cd, California, mem
bers Of the committee which held
hearings here last spring, filed a
minority report dissenting from
the findings Of the majority.
The long-awaited report was
made public as DR.. Townsend, in
California, notified District Attor-
ney Leslie C. Garnett in District
Supreme Court that he would
post $1,000 bond guaranteeing his
appearance for arraignment on
an indictment charging contempt
Of the House. Townsend was in
dicted with two of his lieutenants
after walking out on the investi-
eating committee last spring.
Five Reasons
Representative Jasper Bell D0,
Of Missouri, headed the committee
which in its report declared the
Townsend movement "unsolnd"
for these reasons:
"ONE-Ten per cent Of the people
would receive half the national
income from the labor of the
other 80 per cent.
"TWO-The cost of living would
rise Immediately and these rises
would continue with continued
rapidity.
"THREE-The administration Of
the tax would be enormously eX-
penSive and its enforcement al
most impossible.
"FOUR-Unemployment would be
enormously increased.
"FIVE-Its operation would wreck
the economic and financial
structure Of the country and
would bring chaos and ruin"
For Cold CASH
Clements received about SIS, 900
in salaries, dividends and profits
in a little over one years connec-
ton with the movement, while DR..
Townsend received a total Of
about $4,000 in the same period.
the report declared, adding:
"Dr. Townsend created the
Townsend movement for cold
cash. He was aware that the
collections would not last more
than two years and he employed
promoters to promote the move
ment for financial gain. Most
of the key men in the movement
were making large profits out
of it, together with receiving
their living expenses on a lavish
scale.
"At least two million dollars
were collected in two years by
Old-Age Revolving Pensions,
Ltd"
CHARGES MADE
In a final blast at the move
ment, the committee charged the
refusal of Townsend to testify be-
fore the committee and his instruc'
tions to leaders to refuse to testify
indicated an "unwillingness" on
the part of the TownsenditeS to
make a full disclosure of their &C
tivitieS and a "desire to conceal
unsavory records" of some Of the
chieftains of the movement.
At the time of his walk-out
Townsend said he refused to testify
because the committee was over
stepping the bounds of its consti.
tutional authority and that he was
being "persecuted.'
The report failed to identify
those leaders of the movement
whom it branded men of noto'
riously bad character"