Evening star., 1936-10-29
SECURITY FRAUD
CHARGES HURLED
Enemies and Defenders of
Program Exchange
Accusations.
BY the Associated Press.

BY the Associated Press.
Fraud" charges made by oppo-
nents and defenders Of the Govern.
ment's social security act marked a
growing campaign argument over this
1885 act today.
While William Hard. Republican
radio commentator, called the old-age
pension part OF the plan "a deliberate
coercive fraud upon YOUTH" the JUS
tice Department studied charges OF
the Social Security Board that its
name had been "fraudulently used"
In the form Of signature on posters
concerning the act
Labor's Non-partisan League, in a
statement. said that this entire mis-
leading campaign against an act Gre
ated solely for workers Of the Nation
is typical Of past efforts against labor's
rights by the National Manufacturers
Association, Liberty Leaguers, Mr..
Landon and others of the same ilk."
Declaring its name was being mis-
used in California. Illinois, New York,
Ohio, Pennsylvania. Virginia and
other States, the board exhibited a
sample poster which informed work.
ers that their employers would be
compelled to deduct certain amounts
from their wages under the social
security act.
Sliding Scale Cited.
The deduction begins with 1 per
cent next year and increases until it
reaches 3 per cent the poster said,
and the employer, in addition, is re-
quired to pay either an equal or double
amount. The poster then concluded:
This is not voluntary plan. Your
employer must make this deduction.
Regulations are published by Social
Security Board, Washington. D. c."
The boards name and address we're
printed in display type at the bottom
of the poster
Declaring it had issued no regula-
tionS and authorized no posters, the
board said 1t felt duty TO bring
these posters to the attention of the
Department of Justice for investiea-
ton as to authorship and response
bility for circulation"
Joining with John Hamilton. Re-
publican national chairman. in at
tacking the social security act. Hard
told radio listeners that young people
had been led to believe they would
get pensions "as an act of justice to
you and from the taxpayers most
able to pay"
Higher Prices for Goods.
"The truth is you yourself will oay
most of the money" he declared.
both in deductions from wages and
In higher prices for goods when
employers pass on their share of the
old-age pension tax to consumers.
William Green, president of the
American Federation of Labor, said.
however, the law would enable work.
ers to face old age with a feeling of
security"
Broadcasting under auspices Of the
Democratic National Committee. he
argued the fund collected from work
ers and employees starting January /,
1887, will be carefully administered
and supervised by the Federal Gov
eminent. No greater security than
that could be provided for sucn a
fund"
Hamilton, in an open letter to
President Roosevelt, contended the
money could be used for paying of
the national debt or more likely for
boondoggling, pork = barreling" and
''Tammanyization" of the Nation.
Labor's Non-Partisan League said
that Republican attacks on the act
neglect to state that for every dollar
contributed by the worker for old age
security the employer likewise con-
tributes dollar, and that all the
benefits of this combined fund accrue
exclusively to the worker"
None of the posters or Enclosures
Gin pay envelopes" ;" the league added,
explain that the workers make no
contributions whatsoever for unem-
ployment compensation under the
act.
Certain unscrupulous, selfish EN-
ployers want the social security act
abolished because it will cost them
something out Of their profits"