Evening star., 1937-10-26
DANGER IS SEEN
IN BIG AGE FUND
Tax Conference Is Told of
Spending PeriI-Parley to
Hear D. G. Lawyers.
Erecial Dispatch to The Star. +.

BALTIMORE, Md, Oct. 90
While no Washingtonians appeared
on the initial days program of
the National Tax Associations 30th
annual conference on taxation which
opened here yesterday, at least half a
dozen from the District of Columbia
are scheduled to be heard before the
closing session Thursday night.
E. c. Alvord, Washington attorney,
is on the program for talk tonight,
his subject being THE Undistributed
Profits Tax" Judge Oscar Lesser, a
member of the supreme bench of Bal
timore, who is president of the organi-
zation. will give his presidential ad-
dress at the same session.
Among those to speak at the session
tomorrow morning are Raymond E.
Manning, Washington lawyer, who
will discuss State Tax Legislation,
1887" and L. H. Parker, chief of
staff, Joint Committee on United
States Internal Revenue Taxation,
District of Columbia. Time Element
in Estate and Inheritance Taxation"
will be Mr. Parker's topic.
Undersecretary to Speak.
Three more Washingtonians are on
Thursdays schedule. In the morning
Roswell Magill, Undersecretary of the
United States Treasury. will deal with
"The Problem of Intergovernmental
Exemptions"
At round table session Thursday,
when six speakers will be heard at a
luncheon, two will be from the Capital
Welles A. Gray Of the Chamber of
Commerce of the United States of
America, will talk on tax research pro-
gram of the chamber and Paul F.
Kruger, a member of the Co-ordi-
mating Committee, Central Statistical
Board ant. Works Progress Admins
tration. will discuss Tax Research
Program of the Works Progress Ad-
ministratlon."
Among those to be heard Thursday
afternoon will be Upton r. Snavely
professor of economics, University Of
Virginia, who has chosen Progress in
the Government and Finances of the
Counties in Virginia" as his subject.
SttS dhhs
Dangers lying in the huge "old-age
reserve account" which is accumulat-
ing under the Social Security Act were
pointed out last night in the report Of
the Committee on Social Security Leg
islation.
The report was presented by the
committee chairman, Prof. j. Roy
Blough of the University of Cincin-
natl
If the old-age reserve account is
permitted to accumulate, it was said,
as full acturial reserve-the proceeds
from the pay roll and employers tax
for old-age benefits plus 3 per cent
interest-it will amount to S47,000,-
100000 by 1880.
The presence of this enormous fund,
1t was pointed out, might tempt legis-
lators in Congress to borrow from it
to meet current expenses, encouraging
Congress to increase general expendl-
lures and lower taxes.
The committee, to avoid such a
possibility, hopes that the Social Secu-
rity Act will be amended to require
that the old-age reserve fund be used
to retire the public debt.
Would Reduce Account.
The committee also recommended
that, instead of full acturial reserve,
only a relatively small fund be placed
in this account, and that old-age bene-
fits be paid out of the general Treasury,
the small reserve on hand to be used
when necessary to equalize fluctuations
and revenue and expenditures.
Another feature of the security act,
the grants to the States for public
assistance-aid to the aged, the blind
and the dependent children-received
the attention of the committee. 1t
pointed out that there is pressure in
Congress and elsewhere on behalf of
variable grants; that is, the Federal
Government to pay larger percentage
to poor States than to rich ones.
The committee opposed this, saying
"any departure from the fixed per-
centage principle will throw open the
door to all sorts of demands for
Federal aid with no well established
or accepted principle available to
determine the stopping point"
No Action Taken.
The conference, in accordance with
its practice, discussed the report, but
passed no resolutions in regard to it,
The suggestion that taxes that are
''painful" have special virtue was
made in a speech by Gov. r. L.
Cochran of Nebraska at conference
luncheon yesterday.
The virtue of such tax, said Gov.
Cochran, lies in the fact that the
spending of the money raised is
watched more carefully than is the
money raised by tax which does
not force itself on the attention of
the public.
At the speakers table we're Gov.
Harry w. Nice, Mayor Howard w.
jackson, Harry o. Levin, chairman of
the State Tax Commission; State
Budget Director William H. Brakeman
and other State officials
The four-day meeting has drawn
more than 400 visitors to the city
tax officials of the State and Federal
Governments, attorneys for large in
terests, and scholars from many uni
versities. The sessions are being held
at the Lord Baltimore Hotel.
CRUSHED TO DEATH