Montana labor news., 1936-01-16
Labor To Benefit From
Social Insurance

WASftlNGION-(FP) Social in
s~urance that will provide not only for
jobless workers but also for farmers,
professionals and other self-employed
persons, is the object of the Workers
Social Insurance Bill" to be introduced
in Congress by Sen. Lynn J.. Frazier
(R, N. Dak)
The bill follows the general princi-
pies of the Lundeen measure in the
House, but is broader in scope. Its
proposal for insurance of the self-em-
ployed is the first that has been made
in the history of Congress.
In announcing his sponsorship OF the
bill, Frazier points out that Tor the
first time it recognizes the needs OF the
self-employed farmers, owner Of small
business and professional workers. 1t
also covers all forms of disability, whe-
Their due to unemployment, accident or
sickness, maternity or old age.
1T covers the whole period of I'M
employment for all workers, including
farmers, with benefit equal to average
wages in the occupation in the COM
munity."
Besides insurance for the iobless and
self-employed, the new social insurance
bill includes insurance covering all
forms of disability, whatever their
cause; old-age insurance; maternity in
surance; and widows and mothers in
surance. 1t would call for an immediate
appropriation of $%5,OOO,OO0,0O0, which
Frazier notes is not much more than
was appropriated by Congress in 1885
for work relief.
The bill was drafted by experts of
the nter-Professiona Association for
Social Insurance, which is launching a
nationwide drive in its behalf. The
measure is expected to have the sup
port OF members of Congress, labor
unions and other groups that have
fought for enactment OF the Lundeen
bill Its liberal pension provisions may
also draw much support from the
Townsend plan group, Frazier predicts.
The Frazier bill, like the Lundeen
measure in the House, proposes to
raise insurance funds by taxing high
incomes and accumulated wealth. Par
%ticular attention is given to workers
participation in its administration
This bill avoids a high-salaried bur
eaucracy and partisan political advan-
tage by providing that members of the
Federal Workers Social Insurance
Commission are to receive only per
diem pay for their services equal to
what they would receive if they were
unemployed workers." Frazier notes
with approval in a letter announcing
his sponsorship Of the bill to Mary van
Kleeck, chairman Of the Inter-Profes-
sional Assn.
Commissions and committees COM
posed Of workers acquainted with work
ing conditions would be responsible for
policy-making and the judicial functions
in administering the act, while the ad-
ministration itself would be wholly in
the hands Of experts appointed in ac-
cordance with the regulations of the
civil service"
After the initial five billion dollar
appropriation, annual estimates will be
made, sufficient to cover the compen-
sation payable under the act. 1T would
be the policy" Frazier says, ito raise
the additional funds required by suit
able revenue legislation from high in
comes, corporate SURPRISES, and other
accumulated wealth.
The declaration of policy declares
against payroll taxes, sales taxes, or
any other taxation which places the
burden upon workers, farmers or small
businessmen whose standard Of living
it is the purpose of the act to protect.
"As the money would be raised by an
appropriation from the federal treasury,
there is no doubt that the proposal is
constitutional under the general welfare
clause"