The Bismarck Tribune Newspaper, December 13, 1935, Page 3

+ Government Hopes Social Security Program Will Banish Specter of Want for All Aged On Jan. 1 Industrial Payrolls of Nation Begin Paying Tax to Support Federal-State System of Work Insurance Both Employers and Employes Will Contribute to Fund for Huge National Old Age Benefit Program to Provide Incomes at 65 ‘This is the first of a series of three articles explaining what the government-state social security plan means to you. The program, most ambitious of its kind in American history, becomes effective Jan, 1, Copyright, 1935, NEA Service, Inc.) Washington, Dec. 12.—The most tremndous social-economic experimentation in our history, the so-called social security pro- gram, will become effective on the first day of 1936. * From Jan. 1, industrial payrolls of the nation will be taxed to support a national federal-state system of unemployment in- surance, (The tax won’t be collected until 1987, but most employers have budgeted for it.) Soon afterward, probably also in January, congress will appropriate almost $100,000,000 for use of the states in immedi- ate federally approved programs for: 1, Pensions for needy aged, de- pendent mothers, and needy blind. 2. Extension of state welfare ac- tivities, for maternity and infant care, crippled and neglected children, public health and vocational rehabili- tation. 3. An additional $4,000,000 grant for expenses of state unemployment compensation systems. In 1937 the federal government will begin collecting compulsory contri- butions from both employers and em- ployees for a huge national old age benefit system designed eventually to provide definite incomes for millions of workers after they reach the age of 65, Millions Are Affected There you have the three big phases of the New Deal's most ambitious piece of legislation—a program affect- ing at least 30,000,000 Americans, un- derstood by few members of the con- gress which passed it, damned by certain foremost authorities on eco- nomic security, defended often as “at least @ beginning,” viewed apprehen- sively by many employers, and some- times ballyhooed as something like the dawn of the millennium. “Among our objectives,” said Pregi- dent Roosevelt, “I place first the se- curity of the men, women, and chil- dren of the nation.” And the social security act is his answer, for better or for worse, to a system which in its creakier moments finds many millions of citizens on public charity and even in better times finds millions only a jump from destitution or already there. State Aid Is Vital Right now it is extremely import- ant to remember that except for the long range program of old age an- nuities or benefits— a phase which you mustn’t confuse with federal grants to states for immediate old age pensions, which can be effective as Soon as congress appropriates—the carrying out of the program depends on state legislative and administrative co-operation. State programs must be devised and approved here and state funds pro- vided to “match” the federal grants for pensions to needy aged, mothers, and blind persons as we" as the fed- eral subsidies for other welfare work. Each state must legislate a satis- factory unemployment insurance pro- gram, within certain broad federal Standards, if it is to retain at home a stipulated 90 per cent of the amount of unemployment taxes its employers will be paying to the federal treasury. Only eight states have set up un- employment insurance laws. Some fast work is expected in 1936 on the part of many others, Colossal Task Faced The administrative job created here by the program will be tremendous and the bulk of it will arise when the social security board begins to estab- lish individual files for more than 25,000,000 Americans who will be pay- ing into the federal old age reserve fund toward their annuities in later life. Fortunately, most of the men in charge of the job are of high caliber. ‘Members of the social security board ere: Chairman John G. Winant, the tall, dark, impressive former governor of ‘New Hampshire, a war aviator, former chairman of the president's textile } BUILT IN 1889, SND COULD ATTAIN A SPEED OF 1/0 MILES PER HOURS THE LOCOMOTIVE MAY BE SEEN SEEN INDIVIDUALLY / Y 1213, fashington Correspondent strike inquiry board, and a fighter for child labor laws and maximum weekly working hours for women. Arthur J. Altmeyer of Wisconsin, former assistant secretary of labor, an expert on security and part author of the present plan, a statistician and authority on labor legislation. Vincent Miles, Arkansas lawyer and former Democratic national commit- teeman, who has had relief’ work ex- perience. Experts on Staff The board’s executive director is Frank B. Bane, former director of the American Public Welfare association, an outstanding authority on welfare administration, with practical ex- perience in Knoxville, Tenn., and for the state of Virginia. In charge of mechanization of ac- counting procedure, perhaps the toughest assignment of all, is Henry P. Seidemann, famous here as the wizard who planned the intricate AAA machinery for handling millions | of adjustment contracts and benefit checks, Thomas H. Eliot, grandson of the late Charles W. Eliot, is SSB's youth- ful general counsel. ' The SSB thus fer has operated with ‘@ skeleton staff provided by the labor department and its work has been mostly setting up minimum require- ments and giving advice to states, re- viewing plans and legislation, and planning for a@ future organization which may eventually employ 10,000 persons. How Help is Divided Since the first money to be paid out under the program will be the grants to states for immediate welfare work, let's consider that phase and its sums ; and conditions. It is the smallest of the three phases and the least controversial, since similar federal subsidies have been granted before and there’s no question of their feasibility or constitutionality. The grants approved by congress and about to be appropriated for are: Old Age Assistance—This will be described in a subsequent article, along with the long range old age plan. Aid to the Blind—Appropriation of $3,000,000, to be administered by SSB and distributed to states which con- tribute amounts equal to the federal allotment to them and establish state- wide assistance plans for the needy blind. Federal share of pension to a blind individual can’t exceed $15 a month, but will match the state share up to that figure. Aid to Dependent Children—Appro- priation of $24,750,000, administered by SSB, to states establishing systems of pensions for needy child or chil- dren under 16 who by reason of ‘death, absence, or incapacity of a parent are living with a relative residence maintained as a home. Most of this will come under the head of “mothers’ pensions.” The state must contribute double the amount of the federal grant, giving two-thirds of any pension up to $18 a month for the first child and $12 for any additional children, Maternal and Child Health—Sum of $3,800,000 to be administered by the THis Curious Wortb A BUCK RABBIT OWNED BY MRS.T. M. HARTMAN, (REG. NO. 8003S) WAS THE OF NINE RABBITS, ANDO THE MOTHER OF SIXTEEN. Children’s Bureau, through state health agencies of mothers and chil- ea By William Ferguson ATA Efe THE BISMARCK TRIBUNE, FRIDAY, DECEMBER 13, 1935 THE SOCIAL SECURITY BOARD. LEFT TO RIGHT, ARTHUR J. ALTMEYER, JOHN G. WINNANT, AND VINCENT MILES dren. Grants are on a 50-50 match- ing basis, with $1,800,000 to be dis- tributed in proportion to number of births in the states and $980,000 in proportion to need. Present local maternal and child health services will be promoted in co-operation with medical, nursing, and welfare groups. Crippled Children—Sum of $2,850,- 000, handled by the Children’s. Bu- reau, for states on an equal matching basis, to extend facilities and services for crippled children or children suf- fering from conditions leading to crip- pling, in co-operation with medical, nursing, health, and welfare groups, and agencies specializing on rehabili- tation of physically handicapped chil- dren, Child Welfare—Sum of $1,500,000, of which Children’s Bureau is authoriz- ed to pay $10,000 to each state and $990,000 in proportion to rural popu- lation, i Bureau and state public welfare agencies will co-operate to develop— especially in rural areas—welfare services for protection and care of homeless, dependent, and neglected children and¢children in danger of becoming delinquent. Public Health—Sum of $8,000,000 to be distributed by U. 8. Public Health Service on bases of population, special health problems, and financial needs of states, to assist in establishing and maintaining adequate state public health services in accordance with plans presented by state health au- thorities to the National Health Serv- ice for approval. The act also provides $841,000 of supplementary grants to states for | vocational rehabilitation work and | $4,000,000 for the fiscal year 1936 as grants for administration of state un- employment compensation laws. NEXT: The Social Security Program and Old Age. ‘The new German Zeppelin LZ 129 is ‘equipped with four Diesel engines of 800 horsepower each, KAYWOODIE ES 0 New Drinkless Pipes Regularly $3.50 Now cut to only ...... “Reception” Assorted Chocolates, latest styles, only ....... 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MERCHANTS DISCUSS SECURITY BILL PLAN Old Age Annuities, Unemploy- ment Insurance Is Two-Fold Aim Says Bakken Two-fold purpose of the federal so- cial security act is to provide funds for the payment of old-age annuities and to induce the states to enact unem- ployment insurance laws, P. C. Bak- ken, certified public accountant, told @ group of between 55 and 60 Bis- marck business men at a meeting held here Thursday night to acquaint lo- cal merchants with the provisions of the bill. Bakken in his address outlined the history of the measure, its purpose and the method under which it is to operate. Measures of related social security in the bill are: unemployment compensation, old age security, secur- ity for children, aid to the blind, ex- tension of public-health services and vocational rehabilitation, he said. The unemployment insurance phase of the act is of more immediate con- cern to North Dakota because the taxes will be payable Jan. 1, but the benefits will be payable only to em- ployes in such states as have enacted unemployment insurance laws. That means that all employers in the state with eight or more employes on the payroll must begin paying an excise tax after the first of the year, he ex- plained. Concluding his talk, Bakken point- ed out that several well-known au- thorities believe the act will be |clared unconstiuttional by the su- |prme court. A round-table discussion was carried on at the close of Bak- ken’s speech. 6 HELD IN KIDNAPING Havana, Dec. 13—(#)—Cuba's cam- paign against the kidnapers of Nico- las Castano, Havanan millionaire re- ported to be held for $500,000 ransom, resulted Friday in the arrests of six youths suspected of connection with These Prices Good Until Christmas the case, Public Health 8,000,008 Grants to States to Administer Unemployment 4,000,000 Compensation Laws Maternal and Child Health 3,800,000 Aid to Blind 3,000,000 2,850,000 Crippled Children Child Welfare 1,500,000 Grants to States for Vocational Rehabilitation TOTAL 98,741,000 Almost $100,000,000 will be appropriated by congress in January to launch the great Social Security program, in which the federal gov- ernment and the states will co-operate. The chart above shows the classes which will benefit and how the money will be apportioned among the needy in the ine experiment in . 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