Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-07-31
House Rules Unit Fails
Ito Break Deadlock on
Security Act Revision
By J. A. O'Leory

Inc House Rules COmmCLee To-Day
failed to break the deadlock threat
ening to kill the broadened social
security bill in the adjournment
rush, but will try again this after
noon to agree on a rule to get the
bill to conference.
Members of the Ways and Means
Committee disagreed on the grant,
ing of the rule at a public hearing
this morning, with Republicans sug-
costing the whole subject go over to
January for further study.
Democrats, led by Chairman
Doughton, urged that the bill be
sent to conference for settlement of
the controversial Senate amend
ments.
The fight centerS around Senate
proposal to increase Federal aid to
Ilow-income States in making grants
to the needy aged, to the blind and
to dependent children. House OPP
ponents are insisting on adherence
to the principle of uniform treat
ment OF the States by matching
State funds on $3.50 basis.
Face Automatic Increase.
If a deadlock between the two
houses kills the Social Security bill
wage earners and employers covered
by the Federal old-age insurance
system will face an automatic in
crease next January / in the old
age payroll tax from l to 2la per
cent each on employee and employer
For the last four years, Congress
has been postponing this increase,
and the pending bill would put it of
again, on the theory that the higher
rates are not needed for the time
being. A last-minute move may be
made, however, to pass a separate
resolution freezing the l per cent
tax rate again, If the entire social
security bill cannot be agreed on.
The Senate late yesterday passed
the social security bill after de-
feating without a roll call an effort
by several New Deal Senators to
substitute the Townsend plan. The
defeated plan would have called for
3 per cent gross income tax, to
finance old-age grants to every one
at the age of CO.
Blocked by Objection.
When the bill got back to the
House, however, Representative
Knutson, Republican, of Minnesota
objected to unanimous consent to
send it to conference.
Representative Gore, Democrat,
of Tennessee, made plea for the
Senate amendment, giving larger
Federal grants to low-income States
to care for the needy aged, the
blind and for dependent children.
He said that under the present
system of Federal matching of State
funds, $3.50, needy persons in the
low-income States suffer, because
their States are not able to reach
the maximum grants which the
Federal Government is willing to
match.
Mr.. Knutson said, however, he
will continue to insist that all Of
the States be treated alike.
The Senate adopted an amend
ment, under which Alaska and
Hawaii would benefit from the new
formula after their income statistics
have been studied for three years,
but Senator George, Democrat of
Georgia, in charge of the bill, said
the District of Columbia Is not
affected because it's income is rated
above the national average.
Covers Maritime Workers.
Features of the bill not in contro-
versy would:
Bring 100000 maritime workers
under the unemployment compen-
sation part Of the Social Security
law.
Extend survivors insurance pro-
lection to the families of ex-service-
men for three years without charge.
Survivors OF a veteran who died
within three years after discharge
before he had time to build his
social security credit-would re-
ceive the same benefits that would
accrue to him If he had been work.
ing steadily in covered employment.