Evening star., 1939-08-05

IndngeS AwdIIIng
Senate Approval
House Quickly Accepts
Conference Report in
Adjournment Rush
By the Associated Press.
Changes in the social security law,
designed to broaden the scope of
immediate benefits and ease the pay
roll tax burden on employers and
employees, needed only Senate &C
ceptance today before going to Pres
ident Roosevelt's desk
A compromise version of legisla-
ton passed by Senate and House
weeks ago won approval of the latter
chamber yesterday when Speaker
Bankhead gaveled it through hur-
riedly in the adjournment rush The
hiooV olul llChl-tllC NOll-
nally amendment increasing Federal
grants for the needy aged-had been
deleted
Its elimination restored a House
provision for the Federal Govern
ment to match State contributions
for the needy aged, dollar-for- dol
lar, up to total of $40 a month.
limit.
Senator Connally, Democrat, of
Texas wanted the Federal Govern
ment to pay So for each 81 provided
by the States, up to SIS limit, and
match funds evenly from there to
$40
Present Rate Continued.
The compromise bill would freeze"
old-age insurance taxes at the pres
ent rate of l per cent each on the
employer and employe for the next
three years. The rate was sched-
uled under existing law to rise to
IL per cent next January. Three
year savings to workers and en-
ployers under the new provision
were estimated at 1925 100000.
Another provision would limit the
employers tax liability for unem-
ployment compensation to the first
So, 1000 which he pays for each worker.
1t would effect an estimated saving
of s65 00O, 900 a year.
The increased benefits provided
in the measure would cost an estl-
mated 81 500 100000 in the next five
years. The principal ones would:
l. Start payment of old-age an
nuities in 1910 instead of 1912.
2. Provide monthly benefits for
aged wives, widows, children, and
aged dependent parents of insured.
g. Permit persons over IS to con-
tinue old-age insurance tax pay
ments for the purpose of building up
sufficient reserve to obtain monthly
benefits.
Reserve Account Decreased.
The bill would decrease the size
of the old-age reserve account and
create a board of trustees to admin
lister it. Critics of the Social Secur-
ity Act had contended the reserve
would reach SAT 900 900 900 by 1880,
a figure which was disputed by
others.
The new proposal limits the reserve
to three times the highest annual
benefit payments expected during
the succeeding five years.
In addition, the measure would:
/. Bring seamen and certain bank
employees under the old-age INSTR
ance provisions of the law.
2. Increase the size of benefit pay
ments in the early years of the
program and decrease them slightly
in the later years.
3. Increase Federal grants to
States for maternal and child health
services, crippled children, voca-
tional rehabilitation and public
health work.
4. Exempt insurance agents on
commission from the unemployment
insurance program. Present law
eXemptS most insurance agents from
the old-age insurance program.
The House agreed to elimination
of the amendment by Representa-
tive Mccormack. Democrat, of
Massachusetts,, which would have
permitted reduction of State un-
employment compensation taxes be-
low the present 81 per cent min
imum and still enable employers to
claim the full 80 per cent credit on
the Federal unemployment tax to
biol, fl,ov s,y,fif1o1 h1,
Of the State levy.
Representative TreadWay, Repub-
lican, of Massachusetts,, expressing
regret at the failure of the conferees
to reach compromise on this
amendment, told the House it could
be revived at later date.
In a formal statement Senator
Harrison, Democrat, of Mississippi
said that, while many of the pro-
posed amendments were construc-
tive, he did not sign the conference
report because 1 felt SO strongly
the necessity of a greater measure
of Federal assistance to the poorer
States of the Union, as embodied
in the Connally amendment"
He criticized the "taciturn and
unyielding disposition" of House
conferees, who, he said, refused to
permit the House to vote on the
Connally proposal. He added that
fight for the Connally proposal
would go on at the next session.
An amendment by Senator Rey-
nolds, Democrat, of North Carolina,
which would have barred aliens
from the social security program
entirely, was eliminated by the con-
ferees.
Because of the increasing number