Evening star., 1937-05-24
Social Security

Continued From First Page.)
piled to bring about and to gain
control over State unemployment
compensation, the statutory scheme
is repugnant to the tenth amend.
ment."
The opinion filed by Justice Suther-
land, in which he was joined by JUS
tice Van Devanter, also questioned
whether the administrative provisions
OF the act do not invade "the gov
ernmental administrative powers Of
the several States reserved by the
tenth amendment
Sutherland said that there is nc
doubt as to the authority OF the Fed
eral Government and the State gov
eminent to cooperate to a common
end, provided each is authorized tl
reach it. This cooperation he said
however, must be ef1ectuated by the
exercise of the powers that they
severally possess ''and not by an exer.
else through invasion or surrender
by one of them of the governmental
power Of another"
Justice Sutherland cited as an ex.
ample OF permissible cooperation be.
tween Federal and State governments
the old-age assistance plan provided
under the social security act. This, il
was pointed out, leaves the option tc
the State to accept it or not as 1t will
Hits Destructive Tendency.
In his bluntly worded dissent
Justice McReynolds assailed "the de-
structive tendency of legislation like
the act before u.s. and declared tha,
he thinks that portion of the socia,
security legislation exceeds the powe,
granted to Congress" 1T unduly
interferes with the orderly Govern.
ment of the State by her own people
and otherwise ofTends the Fedora
Constitution" Justice McReynolds
said.
He concluded by declaring that "un-
Questionably our federate plan OF
Government confronts an enlarged
peril"
The first question discussed by JUS
tice Cardoza concerned the nature o.
the tax itself. Declaring it to be al
excise tax, he added: I'VE fnd NJ
basis for holding that the power IL
that regard, which belongs by &C.
cepted practice to the Legislatures OF
the States, has been denied by thu
Constitution to the Congress of tn,
Nation"
He also declared the tax, as set W
IN the statute, Is uniformly admins
tered.
States Powers Cited.
Coming next to what has been
considered the most important ques-
tion in the case from a legal stand
point, Justice Cardozo said the tax
does not violate the fifth amend
ment because it applies only to en-
ployers Of eight or more persons
and does not apply to persons en-
gagged in agricultural and domestic
pursuits.
Pointing out that the States may
lay an excise on the operations OF
particular kind of business, and
exempt other businesses of a similar
character, the opinion stated:
If this latitude Of Judgment l,
lawful for the States, it Is lawful in
legislation by the Congress, which
IS subject to restraints less narrow
and confining."
Justice Cardozo's next holding wa.
that the tax is not void as involving
the coercion of the States in violation
Of the tenth amendment. It had beer
contended that because the law
authorizes deduction Of 80 per cent oi
the tax in States having their owr
unemployment insurance law, the eff.
feet necessarily would be to force
every State to adopt such a law. Al
the present time As States and the Dis.
trict of Columbia have unemployment
insurance statutes.
Facts on Unemployment.
In discussing this question, Justic,
Cardozo said:
ITO draw the line intelligently be-
tween duress and inducement, there i
need to remind ourselves of facts a
to the problem Of unemployment tina
are now matters of common knowl
edge. During the years 1929 tt
1896, when the country was passin'
through a cyclicaI depression, tn
number of the unemployed mounte,
to unprecedented heights. Often tn
average was more than 1O,00O0O0; q
times peak was attained Of l6,0O0, 90
or more.
Disaster to the breadwinner mean
disaster to dependents" the opinion
continued. Accordingly, the roll o
the unemployed, itself formidabl
enough, was only partial roll of tn
destitute or needy. The fact devel
oped quickly that the States wer
unable to give the requisite rele1
The problem had become national i
area and dimensions. There wa
need of help from the Nation. If tn
people were not to starve.
1T is too late today for the argu
ment to be heard with tolerance tina
in . crisis so extreme the use of tn
monies of the Nation to relieve tn
unemployed and their dependents
. use for any purpose narrower tina
the promotion Of the general vel
fare. The Nation responded to tn
call of the distressed. Between Januar
!, 1888 and July !, 1896, the State
according to statistics submitted b
the Government) incurred obligation
Of $3.50, ,29l ,802 for emergency relief
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