Evening star., 1937-11-07
By j. A. O'LEARY.

ttpes has been studying entire lau.
By J. A. OJEARY.
Changes in two ma jor fea lures Of tfe
New Deal-the social security .old-aze
reserve fund. and the Wagner Labor
Relations Act-wfll be sought in Con-
gress when 1t reconvenes by Senator
Vandenberg, Republican, of MICHIGAN.
he made known yesterday.
AS result of his contention A. IN.
last session that full-reserve system
ultimately reaching $4,000 00o. 900 Is
not necessary in Government pen
SION plan, an advisory council repre-
sentlng business. labor and the public
Is now going into the problem. ending
a full-day session here Wednesday and
adjourning until December IL.
While awaiting the outcome Of the
councils study, the Michigan Senator
indicated he Is optimistic over the
prospect for legislation modifying the
old-aze reserve phase of the law.
With regard to the Wagner Act
Senator Vandenberg announced he is
making some changes in the series of
amendments he originally proposed to
that law last June. Explaining he
has gathered additional information
since that time. the Senator expressed
belief his original bill went too far
in some respects and not far enough
in others.
Labor Amendments' Aims.
AS introduced and referred to the
education and Labor Committee on
June 28. the proposed amendment had
the following objectives: To permit
employers to share with employees the
right to demand elections to determine
majority rule for collective bargaining.
and provisions for subsequent elec.
tions; agreements resulting from COL
lectlve bargaining to be in writing, but
With requirement that strikes could
be called only by a majority vote of
all employees: third amendment OUT
lined fair practice code for labor to
parallel the existing fair practice code
for employers.
Senator Vandenberg was not ready
yesterday to disclose the nature of the
changes he is planning to make IN
these original amendments before they
are considered in committee At the
last session he told the Senate his
purpose was to invite study of "an
expanded formula under which legal
lied collective bargaining may hope to
produce more effective industrial peace
and prosperity for labor and every one
else"
Likewise, in the case Of the old-age
reserve fund. the Michigan Senator is
not finding fault with the social Sc
curity program itself. but with the
size of the reserves the original law
conemplates. Asked if he expects to
see the reserve feature amended at the
forthcoming session. the Senator said:
X think they have got to do some
economic. The full reserve is so COM
pletely unsound that cannot believe
they will persist in it. 1t isn't my
idea that controls. but the opinions of
10 leading life insurance presidents
that it is absurd-the needless collec-
tion Of a fund that ultimately reaches
$4,000, 900, ,000"
Hits Use to Pay Deficits"
Before giving his second reason,
Senator Vandenberg emphasized it was
not to be construed as partisan poll.
tics. explaining that his discussion of
social security is not political. Con-
tinuing, he said:
Il don't believe any party is going
into an election defending a tax COL
lection system which takes a billion
year out of the workers of the coun-
try for purposes of old-age pensions
and then uses the billion to pay op-
Grating deficits of Government itself"
The Senator explained that under
the law the Social Security Board in
vests the pay roll tax collections in
3 per cent Government bonds at the
Treasury. He agrees there should be
some contingent reserve. but believes
reserve of somewhere between two
and five billion dollars would be
ample for a Government pension
system.
Abandonment of the requirement
that the plan be maintained on full
reserve basis. the Senator pointed out,
would pave the way either to increase
or hasten benefit payments. which are
not due to start until 1912, or to reduce
and defer increases in the pay roll
tax rates.
Senator vandenberg said Chairman
A. j. Altmeyer and others on the Social
Security Board have taken a broad
minded view of the inquiry and that
he has no complaints to make Of the
way the survey has been conducted
thus far. He also praised the high
type of personnel selected for the
Advisory Council now studying the
problem. N-