Evening star., 1948-05-23
House Unit Favors Bill
Extending 0|d-Age
Benefits 10 3,500,O00
By J. A. O'LeoY


features of the social security law
to 3,500,000 more persons will be
recommended to the House Ways
and Means Committee this week by
it's Social Security subcommittee.
The announcement, made last
night by Representative Reed, Re-
publican, of New York, subcommit-
tee chairman, came on the heels
of a prediction by Democratic
leaders Friday that President Tru-
man soon will transmit a special
message recommending broader
coverage and increased benefits.
Chairman Knutson of the Ways
and Means group followed up with
the statement that I'VE are going
to try" to get action at this ses-
sion. He indicated it would follow
in the full committee bill now
under consideration to begin cor
recting inequalities in the Federal
tax laws. The tax bill will not
change any rates, Mr.. Knutson said,
but will be a revision of admins
IdIiFc pIOFlSlOllo
To "Improve System"
Mr.. Reed did not disclose full
details of his subcommittee social
security changes. but said they "are
important and will greatly improve
the system" He added this general
description:
If the recommendation of the
subcommittee are followed. ap-
proximately 3,5oO,OO0 employed per-
sons not now covered will have
the opportunity of coverage under
the insurance provisions of the act.
In addition, we are recommend
ing liberalization of certain family
benefits, particularly in the case
of children, and we are proposing
several very important administra-
tive and technical changes in the
law which must precede subsequent
major reViSions.
TT was the feeling of the subcom-
mittee that before we increase the
administrative and financial load
on the insurance system, the sys-
TENS supporting framework must
be strengthened to carry these ad-
ditional burdens"
Plan to Seek New Data.
His statement indicated that not
all of the changes deemed desirable
will be attempted Immediately.
In the coming months, he said,
I'VE plan to assemble all the factual
data which we feel is essential to
sound improvements in the Social
Security Act with the view to max
ing further Improvements in the
system
Mr.. Reed began his statement with
the assertion that during the last
seven years of Democratic control
of Congress, no serious effort was
made to broaden the coverage and
liberalize the benefits under the
old age and survivors insurance
program.
Whether it will be possible to get
a social security bill through both
branches in the remaining weeks
of this session seemed problematlcal
last night, in view OF the volume
of business already pending, and the
tentative plans of Republican lead
ers to adjourn June 49, The Re-
publicans open the first OF the ma
tional political conventions in Phlla-
delphia June 81.
Broader social security coverage Is
bound to be one Of the domestic
issues in the coming campaign, now
ever, and both parties undoubtedly
will want to debate the question TO
get their positions before the coun-
try.
Experts Cite Deficiencies.
IF the House should succeed in
passing bill on the subject, 1t
would encounter crowded docket
in the Senate. On that side the
Finance Committee, which would
handle it, already has before ii. the
oleo tax repeal issue, several war
veterans bills and is waiting to act
on the extension of the Reciprocal
Trade Agreement law.
The Senate committee recently re-
ceived a comprehensive report on
social security revision from an ad-
visory council of outside experts,
headed by Edward R. Stettlnius,
jr. This report found three major
deficiencies in the old age insurance
system, namely:
l. That only about three out of
every five jobs are covered by exist
ing law.
2. That there are unduly restric-
tive eligibility requirements for older
workers.
3. That retirement benefits are in
adequate, having averaged S25 a