Evening star., 1936-03-01
Townsend Plan Thrown to Discard
By Congress, Voting for Inquiry

years TO tne extent OF more tndn
$24 ,000, 900 a year: 1t would be neces-
sary to levy taxes eight times as high
as the total revenue from taxation; the
bulk of such taxes would fall upon
millions of people already feeling the
burden Of taxation; the rate of taxa
ton for an American family would
equal or exceed the amount earned
in wages. salaries or other means for
support of the family; some of the
promoters engaged in these various
schemes are men Of questionable char
acter. some have been convicted of
crime and others have long records as
perpetrators of fraudulent schemes
the activities of these schemers as pro-
moters are not only cruelty raising
false hopes in the minds of distressed
and aged people and unemployed. but
are having a strong tendency to in
jure the chances for the successful
operation of sound and workable old
age pension laws The promotional
activities of these groups in falsely
and cruelty deluding such mass of
American people should be unmasked
so that the Nation may avert future
dangers"
In opposing this resolution Repre-
sentative Martin F. Smith of Wash
ington quoted to the Rules Committee
letter from Robert E. Clements, CO.
founder of the movement, saying that
inspectors for the Post Office Depart
ment had given the organization "a
clean bill of health" In answer to
this those supporting the investigation
point out that while there may be a
satisfactory audit of the 1T. o. A. r.
P" the national organizations funds,
DR.. Townsend and Co-organizer Glenn
ents have a closed corporation.
the Prosperity Publishing Co, which
owns the Townsend Weekly, lock,
stock and barrel, and that the ma
tional organization serves as a sales
agency for this privately owned COM
pany, which rakes in the big flood of
dimes and quarters.
Admits Racketeers Are in Cause.
Representative Joseph Monaghan.
Democrat. of Montana, chairman of
the Legislative Steering Committee in
the House for the Townsendites. is
responsible for Co-organizer Clements
being called. He hopes to show the
contributors to the Townsend plan are
being deceived and the old people mis-
led to expect 5000 a month. when the
organizers and sponsors of the legis-
lation know that only a fractional
part of that amount is obtainable.
Mr.. Monaghan. who has been one of
the strongest exponents OF the social
security legislation, admitted in the
House debate that there are some
racketeers in this cause" and quoted
letter he had sent to Clements in
which he verbally castigated him
emphasizing ''the policy of the paper
(the Townsend Weekly, to ignore
legislative activity on behalf of the
Townsend plan: to ignore the
dictates of common honesty and the
urging of the Strategy Committee cot
which Monaghan is chairman). to
come out In its columns and give the
public the definite advice as to just
what the McGroarty bill provides by
way of an annuity and why mislead-
ing statements have been made with
respect to the plan." He wrote: Il
challenge you to justify your actions
in that those members of the House
who so loyalty and fearlessly took the
jeers, the jibeS and sneers now are
being tossed to the oblivion OF OBJ
Scuritv."