Evening star., 1939-04-16
Debate May Start
Wednesday on Shifts
In Relief Setup
Senate Unit-Writes Final
Droft of Bill to Create
Public Works Agency
By j. A. O'LEARY.

day on broad changes in the So
= cial Security Act and merger Of
work-relief activities into a new
Public Works Agency, approved by
a special Senate committee yester-
day as a permanent system for
meeting the unemployment prob
lem.
The final draft of the measure,
sponsored by Senator Byrnes,
Democrat, of South Carolina, paves
the way for placing under civil
service the administrative employees
Of P. w. A.. w. P. A., N. Y. A.. and
c. c. c.. when these organizations
are consolidated into the new Pub
lie Works Agency.
The civil service provision would
apply to any administrative posi-
ton that is not of a temporary ma
ture. The employees transferred in
the consolidation would acquire
civil service status if the admins
traitor is satisfied they have served
with merit for six months, and If
they pass non-competitive exami-
nation. Salary classification of
u Cl1lplOyCo COulu liOU NC
changed until the end of the fiscal
year in which the consolidation
takes place.
Second Line of Defense.
The aim of the bill is to bring
about a tapering off of work relief
by making the Social Security Act.
especially unemployment compen-
sation, the chief source of benefit to
the jobless in depression eras. The
new Public Works Agency would
plan and allocate construction prof.
ects as a second line of defense for
the jobless.
OF far-reaching Importance are
the following changes the bill would
make int the social security setup:
Advance the date for beginning
Federal old-age insurance payments
from 1912 to 1910. with a proviso
that persons IS years old who retire
from industry next year must be
paid not less than the average old
age assistance payment in their re-
spective States. This is expected to
open up many job opportunities for
unemployed workers below retire.
ment age
Establish new standards for State
unemployment compensation laws,
as follows: Limit the waiting period
following loss of work to one week;
make person eligible for weekly
benefit payments if laid off after
rs weeks of employment in a year.
and would continue the benefit pay
ments for l3 weeks if the lay-off
, lasts that long
New Schedule of Payments.
A new schedule of unemployment
benefit payments is laid down as fol-
lows: Not less than SIS week if the
worker was earning $40 or less; half
of his or her pay, if between $40 and
$50, and SIS a week if the worker
had been earning more than $50.
Senator Byrnes believes this will re-
duce the number of persons who
have to apply to w. P. A. for work.
Adds new phase to social Sc
curity-Federal aid to the States for
handicapped persons, for which
$125 ,0000 900 would be authorized the
first year, to be matched by the
States. This is designed to help the
States provide for unemployables
not old enough for old-age assist
ance. This part of the program
would not start until July /, 1910.
and contemplates enactment of
State laws to provide for local CO.
operation in the plan. The changes
In the unemployment compensation
standards also will necessitate action
by most of the State Legislatures to
bring their laws into line with the
new standards in this bill.
The bill also liberalizes the old
age assistance part of the social
security law. rnder which the Fed
eral Government matches, up to
limit of SIS, what State gives
aged persons not covered by the
Federal old-age insurance system.
The insurance system is the one for
which pay roll taxes are collected.
The measure established minimum
OF not less than an average of SIS
q month for old-age assistance.
Controversy Likely.
Controversy is expected in the
Senate over new formula by which
the Federal share of old-age as
sistance payments could be raised
above so per cent, and up to 6623
per cent, in States below the ma
tional average in per capita in
come. A cost-of- living yardstick
=. may be urged as a substitute.
The bill also liberalizes existing
social security provisions for aid to
dependent children and to the blind
While the Senate committee was
perfecting the Byrnes bill, the House
Ways and Means Committee, also
studying revision of social security,
continued in executive session yes
terday without completing its work.
II the Byrnes plan for unified
Public Works Agency is put through
before the $1,5O0,O0O 900 w. P. A.
estimate for the next fiscal year is
considered the appropriation would
60 to the new agency.
Basis of ALLEGATION.
The new Public Works Agency
would be required to allocate its
funds to the States, half on the
basis of population and half on the
percentage of unemployed in each
State. Senator Lodge, Republican
of Massachusetts,, was defeated in a
y, move to have the agency allocate
Jobs instead of money, on the ground
that since wage rates vary in diff
ferent sections, a given amount Of
money will not employ as many
men in one section as in another.
It was Senator Lodge, however,
who succeeded in having the 1910
date for starting old-age insurance
restored to the bill.
Tho public works body was
changed from new executive de-
partment to an independent agency
to meet objections raised by Senator
McNary, Republican leader. On the
bill as a whole. Senators McNary and