Evening star., 1937-05-25

way OUT if he desires to avail him.
self OF it.
Senator Burke, Democrat, of Ne
braska, leader of the court bills foes.
said the validation of unempioy-
ment insurance and old-age pensions
knocked the last prop from under the
court proposal"
Speaker Bankhead contended on the
other hand that the security rulings
would have little effect on the court
dispute.
Senator McGill, Democrat, of KAN
sas predicted that the courts latest
decisions would result in approval of
a compromise
Treasury officials also received the
rulings with f1gurative sigh of relief
An adverse decision would have had a
most serious effect on the Govern
ment's finances and probably would
have necessitated new taxes to pay
the necessary refunds. The favorable
opinions also obviate what might have
been the necessity of new borrowing
to handle the Governments refinanc-
ing program.
AS the situation stands now, the
Treasury will receive into its general
fund taxes from some 26,6OO, 900
workers and 2,70000o employers. 1t
Is expected these taxes will aggregate
about one billion dollars in the next
fiscal year, mounting higher as the
rate of tax increases
Cardozo Delivers ? Onin;onS
The two major opinions, validating
Old age pensions and unemployment
insurance, were delivered by Justice
Cardozo, who was celebrating his 9th
birthday. The third opinion, uphold
Ing the Alabama State unemployment
insurance law, enacted in conjunction
with the Federal statute, was delivered
by Justice Stone.
The vote on unemployment insur-
Ance was to 4, Chief Justice Hughes
and Justices Stone, Brandeis, and
Roberts siding with Cardozo. Justice
Butler dissented outright, while Justice
McReynolds wrote one separate dis
senting opinion, and Justice Suther-
Land, with the concurrence of Van
Devanter, wrote another.
The court divided 7 to 2 on the old
age pension provision Of the law, with
Justices McReynolds and Butler dis
senting on the ground the legislation
violated the tenth amendment, which
reserves to the States all powers not
Rranted the Federal Government
specifically or by necessary implica-
hon.
The justices again split to 4 on
the Alabama State law, with Justices
Sutherland, McReynolds, Butler and
Van Devanter being the dissenters.
This opinion makes it probable that
similar laws adopted by "A other
States, Alabama and the District will
be upheld if attacked.
Coercion Contention Overruled.
For the majority, Justice Cardozo
enumerated and fatty overruled all
the contentious raised by counsel for
the Chas. c. Steward Machine Co. Of
Alabama, which had attacked the un-
employment insurance levy as uncon-
stitutional.
The tax, Cardozo said, was an excise
uniformly imposed despite specified
exemptions from its operation. Nor,
he said, does its provision that 80 per
cent of the tax be rebated to States
having acceptable unemployment in
surance laws of their own constitute a
form of coercion upon the States, nor
an unconstitutional surrender by the
latter of their constitutional rights.
Ito draw the line intelligently be-
tween duress and inducement,' Car
dozo read, there is need to remind
ourselves Of facts as to the problem
Of unemployment that are now matters
Of common knowledge.
"Of the many available figures few
only will be mentioned. During the
years 1929 to 1886, when the country
was passing through cyclical depres-
sion, the number of unemployed
mounted to unprecedented heights
Often the average was more than 1O,-
100000, at times peak was attained
Of 100000 or more. Disaster to the
breadwinner meant disaster to de-
pendents.
Accordingly the roll of the unem-
ployed, itself formidable enough, was
only partial roll of the destitute OF
needy. The fact developed quickly that
the States were unable to give the
requisite relief. The problem had be-
come national in area and dimensions
EFnl.