Evening star., 1939-03-05
Old>Age Pension Roar Puts
Congress Members on Spot
Three.Way Dilemma Confronts House WAYS
and Means Committee as Republicans and
Democrats Lock Horns
By Don Kirkley.

IA ~ "tcVs
for anything promising something for
nothing.
On the wave Of this sentiment some
four years ago, Dr. Townsend, the CLEAN
OF a crusader in his eye, descended on
Washington. The pension issue was fully
born. To his side in 1886 rallied youth
ful recruit, Arthur l.. Johnson, for 10
years attorney for the California Labor
Commission destined to become his chief
counsel and finally his chief headache.
Things rolled along evenly, with only
the Townsend movement in the national
field, until DR.. Townsend took the stump
against the Roosevelt Supreme Court re-
organization proposals. Members of
Congress supporting him did not like
that. They called him to task. johnson
quit Townsend and, almost overnight,
set up the General Welfare Federation
OF America, of which he became execu-
tive and legislative secretary. A number
OF dissident Townsend clubs went over
to his camp. If the two organizations
ever got together, a terrific pressure
group would come into being.
Basically, there is not much difference
between their two programs. Johnson's
bill would finance old d-age pensions with
per cent gross income tax; Townsend,
per cent transactions tax. Johnson's
program is the more reasonable because
it provides number of exemptions on
wage earners and business; Townsenos
provides none. DR.. Townsend offers all
the tax yields on pro-rata division, up
to 5000 month. johnson puts top
limit of $50 and insists that the elderly
get at least $50 month, regardless of
what the tax may bring.
Neither exacts national dues as such:
each has numerous clubs scattered
around the country. DR.. Townsend claims
around 1000; johnson, around 300. The
pension groups operate something like
combination revival meeting, political
rally and old-fashioned sewing circle.
Each subsists on contributions using the
"hat-passing' or collection box" tactics
of the evangelist There are constant
appeals for funds to get our great cause
before Congress" Petitions addressed to
Congress, appealing for enactment of
the bill, are sent to members in the
field. In getting signatures, they ask
each person to give dime to the cause.
Estimates Start at s5O0O, 900.
Just what the cash contributions Of
the old folks to these movements and
the State groups, total, probably never
will be known. The best estimates Of
the last four years start at S5,000000.
of which at least 80 per cent is accredit-
ed to DR.. Townsend and his business
like. efficient organization. DR.. Town.
sends last quarterly report showed re-
ceipts of some $4,000 for the three
months. Johnson reported $1,000 in
the seven months ending with January
l. 1899. In DR.. ToVnsends report sala-
ries were Jumped. In Johnson's they
we're itemized by individuals, including
$50 weekly paid him 'on account toward
his salary of $3.50 monthly, the balance
accruing on the books of the organiza-
ton. which now owes him considerably
more than s5,000-a direct lien on the
assets of the organization under the
laws of the District of Columbia, in
which the federation was formed in
July of 1887. Johnson's first two ac-
counting reports failed to show this
included when he filed financial state
ment with the Ways and Means Com
mittee.
Just what the State groups have taken
in cannot be determined. The "ham-
and-eggs" plan in California reported
some time ago that it had received
and spent about $780, 900 in approximate
ly year and is still going strong. Esti-
mates of Colorado receipts range from
100000 to $4,000, just as tokens OF
what can be done to help the old folks
to security and jobless leaders into jobs.
Regardless of the ridicule which may
be heaped upon the millions desiring an
old-age annuity, sentiment for uni
versal system is growing from coast to
coast, spurred on by humane as we'll as
political passion on the part of many
members of Congress to aid our senior
citizens. But the ramifications are tragic
in their probabilities, as the best judg-
ment of the economic and other experts
is that no program that would satisfy
the elderly could be put into effect with
out destroying our national economic
structure. Leaders of the several pension
movements are strong on arguments;
woefully weak on expert opinions and
economic facts with which to back
themselves up.
The result is that they are driving at
members of Congress to compel action.
Among them, the several movements can
count about 200 members of the House as
friendly; possibly 80 or IS Senators. DR..
Townsend's strength is largely among
the Republicans; the federations, large
ly among the Democrats. One hears the
other has Congressman pledged to vote
for his bill and Immediately moves in to
try to switch the vote over to the other
side.
Meanwhile, as the struggle goes on,
members of Congress are worrying about
three main points: How many votes will
be lost by taking sides between the two
organizations; where is the money COM
ing from to pay what they ask; will the
taxpayer take it without doing little
vengeance voting himself?
Awaiting the outcome-as the decision
will have to be made in due time-is the
more or less silent audience Of the H.
100000 old folks who feel they are en-
titled as a matter of right to a. pension