The Waterbury Democrat., 1937-04-17
Social Security Act
 May Get Decision
Continued from Page D

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 will be decided before the term ends early in June.
 A decision on Old Age Pensions would practically clear the courts of New Deal legislation except for the Utility Holding Company Act and the Administration Power Policy, both of which will probably be acted on at next falls term.
 Major Factor In Case
 A major factor working toward a ruling on Old Age Pensions at this term of court is the apparent will ingness of the government to have the validity of the Social Security Acts major phases decided by the court. It's object in this is to ob- tain a ruling on propriety of the taxes collected under the law.
 Another major factor is the insist ence shown in the past by Davis attorney, Edward F. McClennen. to have the court pass on various phases of the security law.
 McClennen, former law partner of Liberal Justice Louis D. Brandeis, once before sought to bring Davis case before the court but met with refusal presumably because the first circuit court of appeals had not yet acted. With the circuit court hav- ing ruled agairstt the law, the higher tribunal probably will accept an appeal.
 Heard Appeal Argument
 Last week the court heard argu- ment on an appeal of the Charles C.. Steward Machine Company Of Birmingham, Ala, attacking validity of the unemployment insurance pro- visions of the law. The company had sued to recover $46 in taxes paid under the law. The fifth cir- cult court of appeals rejected the suit and upheld the law.
 The court may decide the Ala bama case as early as April 26, when it returns from its present two week recess. Its decision would super sede the Boston ruling on the un- employment insurance phase. Program Must Go On
 Boston, April 17-(UP)-Desplte the U. s. Circuit Court of Appeals decision holding two of the Il titles of the social security act mconstl- tutional, there will be no interrup- ton in the social security program pending the Supreme Courts opin- ion.
 John Pearson, New England regional director of the social secur- lty board, said today that collec- ton of taxes, payment Of claims, for account numbers and grants-in-aid to states would continue at least until the highest tribunal had acted.
 Special Assistant U. S. Attorney Arthur Murray expected the Su- preme Court to rule on the matter within a few weeks.
 Warning that validation of the act would mark the lend of respon- sible state government" the circuit court in a 2-to-1 decision yesterday held titles eight and nine unconsti- tutional.
 Taxes Held Invalid
 Specifically the majority, on grounds the act violated states rights, held invalid these taxes:
 1.-An excise tax on payrolls levied under the acts title nine unemployment insurance"
 "A tax on employees deducted by employers under title eight told age assistance).
 3.-A tax on employers equal to the total of that of their employees, also under title eight.
 The circuit court was the same that in July 1885 in another 2-to-1 decision held unconstitutional the controversial Roosevelt AAA pro- cessing taxes. Subsequently the supreme court upheld the decision and outlawed the measure.
 Written By Republicans
 The opinions holding the Social Security Act Unconstitutional were written by Republican Judge Scott Wilson, 67, and concurred in by Re- publican Judge James M. Morton, Jr., 67. Democratic Judge H. Ging- ham, 72, dissented.
 In the title eight case, involving old age assistance, the ma ajority held that the imposition of such taxes is not valid exercise of the power vested in congress under section eight, article one" of the constitu- tion
 "If the United States can take control of unemployment insurance and old age assistance by the coer- cive use of taxation, 1t can equally take control of education and local health conditions by levying 8 heavy tax and remitting 1t. in the states which conform their educational system and their health laws to the dictates of federal force"
 In deciding the title nine case, dealing with unemployment ir1sur- ance, the majority ruled that con- gress "has no power, either directly or indirectly, to invade this province of the states.
 "The care of the unfortunate and the Independent. and the relief of those unable to labor Is burden inn- posed on the state and until recent ly has always been so considered" :" the circuit court majority said.