Evening star., 1946-07-14
Rails Face New Cost
OF 100 Million Yearly
Under Pension Bill

llt uyllle QdyS Vi ll1e iStu COIl-
gress find the railroad industry
watching the Senate, where the
Crosser bill which would cost the
carriers $l00,000O00 more for liber-
allied pensions and unemployment
aid, awaits action.
Dormant for months. the bill,
sponsored by Representative Cros-
ser, Democrat, Of Ohio passed the
House earlier this month. and was
reported to the Senate Friday by
the Interstate Commerce Commit
tee, which approved the measure
without further study on the basis
OF hearings last year. Railroad
spokesmen look for passage before
the session. ends, and President
Truman's signature likewise is ex-
pected
With revenues spiraling down.
ward from wartime levels, the
carriers plan then to make new
representations for compensatory
rate increases before the Interstate
Commerce Committee, which al
ready is confronted with an applica-
tlon for general rate increase to
care for the $500, 100000 wage raise
which the employees won recently,
and for which temporary relief has
been granted
Exceeds Social Security Aims.
The Crosser bill provisions go far
beyond those for workers covered
by the Social Security Act in other
industrleS-and the tax is cores
pondingly higher. At present. car
riers and employees share equally 7
/ per cent tax for pensions-a total
Of $3.50 100000 on a S4000,O0O 900
| payroll. This would be raised to IL
/ per cent-Shared equally-at the
outset, and in three years would go
| TO l2iz. In other industries, en-
ployers and employees pay per
cent each.
No change is contemplated in the
unemployment tax which is the
same as in other industry. per
cent, and. as under social security,
is borne by the employer.
| w iilIS VIC iiC" ldh iCNCi ID NC
signed to put the pension fund on
an actuarily sound basis, the Asso-
citation of American Railroads con-
tends that disbursements under the
new program will be so great that
neither that fund, nor the unem-
ployment compensation fund. will
| be actuarilv sound The association
cites independent actuarial studies
to support this argument.
/ Would Extend Coverage.
! A major change made by the
Crosser bill IN the existing law
would extend pension coverage to
! freight forwarders and railroad
controlled motor companies. AAR
/ Spokesmen also say the language is
broad enough to permit the Rail
road Retirement Board arbitrarily
to cover independent activities hav-
ing no relation to the railroad in
duStry-for example. truckers doing
no more than hauling ice to re-
frigerator cars. =.
Liberah2ed retirement age and
disability provisions are provided
/ and the proposed legislation also
would raise the monthly minimum
pension payable from $40 to $50, as
, compared TO the $40 minimum of
social security. Dependency bene-
fits about 25 per cent higher than
/ those under social security are an
other feature of the legislation.
/ The revised unemployment COM
pensation act would Surpass So
cial security TO a like extent Sick
ness or accident in no way related
to railroad employment would be
covered. as would pregnancy and
maternity.
Recommendation Ignored.
In approving the measure. the
Senate Interstate Commerce Com
mittee ignored recommendation
from subcommittee headed by
Senator Johnson. Democrat. of Colo
RADIO which held the hearings last
year but refused to make any sug-
gestions, saying the measure should
De considered in connection with the
whole social security program.
When the measure was before
the House Interstate Commerce
Committee, Representative Lea,
Democrat. of California, the chair
man. in opposing it said that if
other workers are to be treated as
we'll as railroad labor, the total
cost of social security payments
would run TO $4,000, 100000 annu-
ally--a burden he said would de-
Istrov the economy of the country.
The House committee amended
the measure to ease its impact.
but the House itself, after adopting
these amendments while in commit
tee of the whole, rejected them on