The Daily Alaska empire Newspaper, January 5, 1937, Page 3

THE DAILY ALASKA EMPIRI " LAST TIMES TONIGHT THE ROMANCES OF THE MAN WHO WROTE MY OLD KENTUCKY HOME" [} — DOUGLASS MONTGOMERY HARMOMY SED ON THE LIFE O gfiunmocg‘wm vgsu ALSO The Pinch Singer Southern Hospitality News STAR'S RIGHT WAS WRONG, SO REST SHIFTED! Ratoff’s Dogs Won't Mind So Military Code Is Altered They're all out of step but Gre- gory, is the chant the 20th Century’'s cast of actors in “Under Two Flags” at the Capitol Theatre, brought back from their location trip to Yuma- Arizona, for that picture. Gregory is the Gregory Ratoff of the precious Russian dialect, who plays one of the important char- acter roles in the gigantic case that helped to bring Ouida’s famous nov- el to the screen. Cast as a private in the French Foreign Legion, Revoff discovered to his dismay that he invariably led off wth his right foot when he was commanded to march. And because every good soldier leads with his left Ratoff beat a hob-nailed dissonance which was not so good for the micro- phones. As a consequence, Director Frank Lloyd settled the problem in an un- military but a diplomatic fashion. He instructed the other six hun- dred soldiers to keep step with Ra- toff—and the expedient bore results. Ronald Coleman, in his most dash- ing military role, is starred with Claudette Colbert, Victor McLaglen and Rosalind Russell. Closing its showing at the Coli- seum Theatre tonight, is “Harmony Lane,” film portrayal of the life of the beloved American composer of songs of the Old South, many of which are featured in the picture, Stephen Collins Foster. In the part of Foster, Douglass Montgomery is said to turn in an excellent performance. He is ably supported by Evelyn Venable, Wil- liam Frawley, Adrienne Ames, Cora Sue Collins, and Joseph Cawthorne. INTERIGR MAN FOUND FROZEN IN SNOW DRIFT Jack Isaacson Misses Right Trail to Fairbanks and Perishes FAIRBANKS, Alaska, Jan. 5— The body of Jack Isaacson, 56, was found frozen in a snowdrift, half a mile from the Fish Creek dredge, 25 miles from here by a search party United States Commissioner Growden sent out. Only an arm was protruding from the snow drift. Isaacson started to walk down Fairbanks Creek a week ago and took the old branch road by mistake and undoubtedly lost his way. He had no snowshoes. A dog team will bring the body here. Isaacson had no known relatives. MEN’S DRESS 32.95 SHOES and 5 BIG VAN .. OXFORDS old Age Pension and Umploynient Compen- i sation Under the National Security Act e The following article on the Social Security Act and its sig- | ificance to Alaskans was pre- pared by Henry Roden, Terri- torial Senator from the First Division. At a time when the provisions of the Social Security Act are be- ing discussed wherever two or more people meet and when the incom- ing Legislature must decide wheth- ar or not the Territory will take advantage of the offers of the Federal Government to assist in carrying out its provisions in this Territory, it should not be amiss) to give a clear and concise state- | ment of its provisions so that he who earns may know what it's all about. The Federal Act contains a num- ber of “Titles,” each dealing with a different subject. I shall deal with those of interest to the wage and salary earneps in Alaska. “Title Ong” has to do with as- sistance to shose who have reach- ed tke age W sixty-five years and are unable %o provide for them- selves, Thig assistance is rendered as a mattel. of charity and not of right. The recipient contributes nothing to the bounty he receives and the plan is very much like our Old Age Pension system now in effect. There are, however, a number of differences well worth to consider. Who Entitled to Old Age Assistance All those sixty-five years of age (male or female, white, colored o native, citizen or alien) who have resided in the Territory five years during the nine years immediately preceding the application for Old- Age Assistance and have resided in the Territory continuously for ont year immediately preceding the ap- plication are entitled to this as- sistance; an applicant must be de- pendent for support and must not be an inmate of the Pioneers’ Home or some other public institution. We have stated that an alien, who is qualified as above stated, is en- titled to Old-Age Assistance; it must be remembered in this con- nection, however, that the Terri- tory has power to exclude aliens. How Much Do I Get? If the Territory accepts the of- fer of the Federal Government and sets up a system in the form re- quired under “Title One,” the Gov- ernment will match, on a 50-50 basis, every dollar spent by the Territory for Old-Age Assistance, but not more than $15.00 per month for any individual; in other words, the Government will pay half of the amount paid to any individual up to $30.00 a month, any amount over and above $30.00 must be paid by the Territory. The Federal Government pays ior the administration expenses of the plan, an amount not exceeding 5% of the sum paid to the Territory under thed plan, In order to secure the benefit of “Title One” the Territory must set up a plan for Old-Age Assistance; and such plan must be approved |by the Federal Security Board be- fore any grant of Federal funds is made to the Territory. It must conform to certain requirements; it must provide for financial par- ticipation by the Territory; must provide a tribunal offering a fair | |in a laundry at $15.00 a week. These benefits are paid on the same prin- cipal as insurance is paid to any- one who pays the premium on the policy; neither citizenship, color, |race nor financial ability has any- thing to do with it. The first benefits will be paid| January 1, of ta Januavy 1, As stated, the amount of the benefits to be paid depends on the amount of wages earned be- tween January 1, 1937, and the day on which the beneficiary becomes 65 years old, but in no case be- fore January 1, 1942. To those who become 65 before January 1, 1942, a lump sum payment is made as | we shall see later. The ‘word “wages” includes not only the cash value of all com- pensation paid to an employee but covers also the value of board and lodging, if any is furnished him, and the cash value of all other renumeration received by him for work, labor or services performed for an employer, up to $3,000.00 during any calendar year. The term “employer” means any service performed by any employec for his employer, in the Unitec States, except: Agricultural labor; domestic serv ice in a private home; casual labo not in the course of the employ- ar's trade or business; services per- formed by an individual who has attained the age of sixty-five; services performed as an officer or member of the crew of a vessel dccumented under the laws of the United States or of any foreign country; services performed in the smploy of 3tate, pality, Scho political subd 1942, but the payment for the fund commences 1937. Territory, County, Munici- 1 Distriet or other ision or agency © ity; or any services performed in the employ of a corporation, com- munity chest, fund or organization rganized and operated exclusively for religious, charitable, scientific, literary or educational purposes or tor the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private share- holder or individuaul; the Act also exempts railroad employees. Some of these workers were left out because they are already re- ceiving a pension under some other law; others because of the tremend- ous difficulties of keeping track of their wages and collecting the re- quired percentages of them. For example: Take the case of a man who performs “services not in the course of the employer's trade or business;” a man who travels from house to house mending old kettles or sharpening scissors; vhile doing any State, Territory or Mumcipulw’_hv e e i e} During 1940, 1041 and 1942—1% per cent. During 1943, 1944 and 19452 | per cent. | During 1946, 1947 and 1948—2%% | per cent. { Thereafter—3 per cent. The employer is charged with re- taining the respective percentages out of the wages of his employees. The employee's tax attaches at the time the wages are either actually or constructively received by him. “Constructively received” means that while the wages are not actually placed into the possession jof the employee they are set aside |or credited to his account so that they may be drawn by him at any | time he desires to do so. The tax is computed by applying the rate in effect at the time the services were performed. If the employee does not yet full payment of his wages during the year, they were earned, then the tax is col- lected when such final payment is made, if at all. For example: A in 1937, earns $1,800.00 and is paid, on account thereof, $1,500.0 he vill be required to pay taxes on he amount received, that is at the, ate of one per cent; the balance >f $300.00 is paid him in 1940, when | half he tax rate is 1% per cent; in hat year he will pay one and one- 18lf per cent on all wages earned during the year and one per cent on the $300.00 balance due him from 1917. Every employer must make a monthly tax return beginning with January, 1937 The employer is required to pay the same percentages upon his total payrolld, so that both employees and employers contribute equal the United States, 2lamounts into the “Old-Age Reserve Account.” | Suppose a scrub {for $20.00 per week. During 1937 will be paid $20.00 per week ss one per cent of $20.00 which twenty cents; she will therefore receive $19.80; the twenty cents {will be taken by her employer, he (will add a like amount to it and forward forty cents to the Old-Age Reserve Account. Another illustra- tion: woman work Suppose you are the foreman in a mine and earn $250.00 per month; during 1937, you will pay $250 per month; your employer will pay the same; in 1940, if your pay remains <he same, you will chip in $3.75 ind your employer will do like- wise; in 1949, if your pay continues| the same, you will blow back $7.50 per month and your employer will! ldo likewise for your account If you earn more than $3,000.00 pear year from one employer you do not pay on anything on thel amount above $3,000.00 and in com-, puting the amount of your bene-| this kind of work for a butcher he|fits, anything received over $3,- would not be employed in the 00000 a year will not be consid- butcher's trade or business; he|ered; so that a mine manager who would be doing an edd job for the|gets a salary of $2,000.00 a month | butcher. It would be extremely(Pays only as much as the mine| and to collect the prescribed per- centages on his pay. For that rea- son Congress excluded such lizes Act. Take another case: A’s business and impartial hearing in case of protest; a Territorial agency must administer the funds and the Ter- ritory must make required reports to the Federal Security Board. The age limit cannot be lower than 65 years but may be 70 up to 1940. It will be seen that the Territory and not the Federal Government administers and runs the plan; the Territorial Legislature will say whether you are entitled to such assistance and to how much; the Old-Age Assistance Plan is based on need; if you are sixty-five years old and have not other sufficient income to live decently, and you are qualified as to residence, you are entitled to a modest cash pay- ment; it does not mean that you have to be a pauper; if whatever income you may have leaves you in is that of operating a sawmill. He employs B, a painter, to paint his home at a daily wage. B's labor is casual and is not performed in the course of A’s trade or business —that of operating a sawmill. Casual Labor: Labor which is oc- casional, incidental or irregular is designated casual labor. But if it is done in the course of the em- ployer's trade or business it comes within the Act and is not exempt. Take the sawmill case again. A Is engaged in the business of running a sawmill; he employs B for two hours at an hourly wage to remove sawdust from the mill; B’s labor is casual since it is occasional, in- cidental or irregular, but it is done in the course of A’s business or trade—that of running a sawmill— and is therefore not exempt from need, you are entitled to some as- sistance. “TITLE II” Old Age Benefits Under this Title annual install- ments, called “annuities” will be paid by the Federal Government to those entitled to receive them. A fund, known as the “Old Age Reserve Account,” is set up by Gov- ernment and all old-age benefits are paid out of it; while the ad- ministration and carrying out of the Old-Age Assistance Plan (as described in Title I) will be ad- ministered by the Territory. The Old-Age Benefit Plan is run by the Government alone. The Terri- tory will have no part in it what- ever. It is a system of old-age insurance payable to those entitled thereto; it is financed by taxes based on the wages or salary earn- ed by those coming within the terms of the act. The taxes'are paid by employers and employees alike. Old-Age Benefits have nothing to do with need; they are based on what you earn between January 1, 1937, and the time you are 65 years old; they are paid to you as a matter of right—pecause you and your employer have paid for the same; they are paid to the man earning $100,000.00 a year salary as well as to the washwoman working the tax. It may be said here that every person is an employer who employs one or more individuals in any employment in the United States that is not specifically exempt from the Act as above indicated and the Act makes no distinction between classes or grades of em- ployment or employees, so that it covers managers, superintendents and other so-called higher em- ployees—all must pay the tax, and an employer may be a corporation, partnership, individual, joint-stock company, syndicate, group or other unincorporated organization. Officers and Members of Crews: Includes the master, mates, pil- ots, pursers, stewards, engineers, firemen, cooks, carpenters, deck hands, porters and every other in- dividual in charge of or employed on any vessel; and, according to the Treasury Regulations, covers seal hunters and fishermen on sealing and fishing vessels, if such vessels are registered, enrolled or licensed in conformity with the laws of the United States or any foreign country and are exempted from the operation of the Act. How Much Do I Pay? The employees will pay from his wages or salary as follows: During 1937, 1938 and 1939—1 per cent, difficult to keep track of his work|‘oreman with a salary of $250.00| Suppose an employee is 20 y per month. jold on January 1, 1937, and works Each employee not coming with- in any of the exempted -classes Security Board at Washington, D. C, for a number, and this number remains with him until he reaches the age of 65 years, when he be- comes entitled to his benefits. The Government will keep a record of your name, number and the amount you earn each day between now and the time you reach 65, not counting anything you earn in ex- cess of $3,000.00 in any one year| from any one employer. From your total earnings during! that time, the amount of your monthly benefits will be computed when you become 65 years old Qualifications To qualify for benefits, an indi- vidual must be at least 65 ye: old, must have earned not s than $2,00000 in total wages or TUESDAY, ] wn with Mrs. of the Madison Square Boys’ ( ordan L. Mott, ¢ New f of one per cent month, ich is $15.00. If you per the will that have ecarned to! sum of $2,000.00, you of one per cent of Aamou which is $10.00. I u have not earned a total 000.00 you are not “qualified;” case you will not receive monthly - benefit but will paid a lump sum when you reach which will be 8% per cent total amount you did earn past 65 is not affected law at all. be ars, of A person by On all you earnea over $3,000.00 up to $45,000.00 you will drav of one per cent, and on all ou earned in excess of $45,000.00 ou will draw 1/24 of one per cent but nobody ean draw a lar monthly benefit than $85.00 and i1 order to be entitled to this, if you | will get out your pencil and figure it, a worker must have work forty-three years before he becom 65 and he must have earned $3 000.00 during each of the forty- three ye i A few illustrations of the manner | in which the benefits are calculated are of interest Suppose an employee is 61 year old on January 1, 1937; he works for five years until he is 65, by January 1, 1942, at an annual| wage of $1,200.00 he will have earn- ed by the latter date a total of $6,000.00. He will be entitled to re- ceive until his deatha monthly benefit on and after January 1 1942, of ¢ of 1% of 000.00 or 1/12 of 1% of the remain- $15.00 the first $3 ing $3,000.00 or 2.50 Making a total monthly benefit of $17.50 45 years during the course of which he earns a total of $130,000.00; he of employment from the operatiunjabove mentioned, is required to|will be entitled from the time he of “Title II" of the Social Security | make application to the Federal is 65 years until his death a monthly benefit of: % of 1% of the first $3,- 000.00 or $15.00 1/12 of 1% of the next $42,000.00 or ... 35.00 1/2¢ of 1% of the re- maining $85,000.00 or 35.41 Mzking a total monthly benefit of $85.41; but since the Act provides that the monthly beenfit can in no case exceed $85.00 such worker will receive only the maximum benefit, which is $85.00. It will be noticed that the ar- rangement is so devised as greatly to favor employees now of advanced age. The main reason for doing this is to give older people, in the relatively short time that remains salary between January 1, 1937, and {0 them between now and when the day on which he becomes 65; he must have earned such wages or salary by working at least one day in each of five years and he must not belong to one of the ex- cluded classes, such as employed in agriculture, on a documented vessel employments. Remember, however, that if you have earned the required minimum amount of $2,000.00 in some cum- ployment not excluded, it is im- material that you may have work- ed for many years at one of the excluded employments; for example: A man may have worked for twenty \years as captain, or mate of some other line on a documented vessel; but he has also been employed as a miner in five different years be- tween January 1, 1937, and the time he comes 65; he will be en- titled to receive his monthly bene- fit computed on the wages or salary earned by him as a miner. How Much Do I Get? As we have already seen, when you reach the age of 65, and are qualified as just stated, the Gov- ernment will total up the receipt of all your wages and salary and determine the amount of the monthly benefit you will be paid up to the time of your death. These monthly benefits are de- termined as follows: they will be 65, a chance to ac- cumulate at least a little income. Almost anybody under sixty, who is now employed can in the next five years earn $3,000.00, which will entitle him to $15.00 a month from the time he reaches 65 until his or in any of the other excluded!death. Payments to Individuals Not Qualified for Benefits But suppose you are over sixty now. If you are already over 65 the law does not affect you at all. You cannot possibly come under it. will not get a monthly retirement allowance upon reaching 65, but you will be paid, at that time, 3% per cent of your total wages earned between now and then. For ex- ample: You are 62 years old, You earn $1,800.00 a year. On your h birthday you will have earned $5,- 400.00. On that day you will re ceive 3%% of $5400.00 which is 1$189.00. You will have paid the |Government in that time $54.00 and your employer will hae paid a like amount for your account, making a total of $104.00 paid in. If for any reason you cannot \qualify for the monthly benefits (because you have not earned at least $2,000.00 between now and your 65th birthday or have not worked at least one day in each of five years between January 1, 1937, and your 65th birthday) but On the first $3,000.00 of your total earnings you will draw one have paid taxes on your wages 5, '1937. S‘um Boys and a Girl Friend York society in & ewanky midto “lub who performed at the affair are rman of the supper dance held by | n hotel for the benefit of the club. | which each employee is required tc do up to his 65th birthday, you likewise be entitled to 3% % of the total wages earned by you between now and your 65th birth- day. These percentages are paid| in lump sums. You will not be tied to one job | or to one place; you may work as a miner today and as a bank. clerk next week; you may put in a year! (in the South picking cotton, loaf| around the next ten years and then o to work on a dredge at Nome for six months; just as long as vou work at least one day in each of five different years and earn not less than $2,000.00 before you reach 65 you are entitled to your| ithly benefits. One more thing | you must do before they are paid to you—you must retire; if you ac-| pt employment after you reach years, then you will be docked one month’s benefit for each cal- |, dar month during which you ac- cepted employment. The theory of ‘(im is that old people should re- | tire and make room for the young- - generation. Payment Upon Death If an individual dies before re- | ceiving any 1efit payment, that 5, if he dies before attaining the age of 65, there is paid to his state 3':7% of the total wages arned by him between- January 1, 1937, and the date of his death. If an individual dies after he| has received some benefit pay- | ments, that is after he attains the | of 65, then his estate is en-| tled to 3'%% of the total wages| earned by such individual cubse- quent to December 31, 1936, less The Show Place of Juneau LAST TIMES TONIGHT PO o v W MIDNIGHT PREVIEW ALSO 1T Daily Alaska Empire TONIGEE News “THREE GODFATHERS” INDIAN NUT HARVESTERS ARE RESCUED \Snow bound for Nearly | Week, Relief Party numeration whethgr payable in noney or something other than nor such as board, lodging, ;00ds, clothing, commissions, fees, bonus on wages, and whether paid on the basis of piecework or a per- centage of profits and whether paid by the hour, day, week, or year; expenses allowed an employee, hos- pitalization, sick pay, vacation al- lowances. ( The tax rate is levied on the total | payroll, including managers, super- intendents and all other so-called her employees paid by the em-| ReachesThem r during the calendar year| and includes not only the wages| aryyp New Mexico, Jan. 5.— paid the eight or more who work;Mm,e thnn‘ 300 Navajo Indian nut at least @ portion of a day OR .. egters hungry and numb from twenty days, each day being in & ., ,,00 were rescued late Sun- ditferent calendar week, but alnoldfly from the rugged Zuni moun- on the wages paid to lndxvldun.lg .ain area, more than 60 miles south who perform work not in the| .0 where they were snowbound regular trade or business of the| . ..\ ot one week. employer and who work only an hour in the year. For example: if a cannery em- ploys eight employees for twenty| weeks in a year, and three hundred Filipinos for le: than twenty:A“my said there were no cas- weeks, the tax is levied on thel el e come of the Indians entire wages earned by all the em-| oo i1} from exposure. ployees, both the “steady” men and the Orientals. behind snow plows, effected the rescue after two days of vigorous travel. Supt. E. R. Fryer, of the Navajo Territorial Unemployment Compen= Indian Service trucks, following : : e The principle purpose of this the amount of benelit pa,mem.s\,_nxfluon is to induce the States rm-vliwd by him during his life .,q Territories to enact local un- SRS |employment compensation statutes. The foregoing i « synopsis of| If a State or Territory hus its If you are between 60 and 65 you' the purviews on “Title IL” of the! National Security Act. | “PITLE 1P 1 Unemployment Compensation The Social Security Act does not establish any unemployment com- Ipensation system. The States and Territories are invited to enact laws for the compensation of their { unemployed. | But under “Title IIT” of the So- cial Security Act a payroll tax amounting to one per cent of the | lotal payroll in 1936, two per cent |in 1937, and three per cent there- after is levied and collected from twenty days during the year, each day being in a different calendar week, had in his employ, during some portion of the day (whether or not at the same moment of Lime) eight or more employees. The tax must be paid by every mployer who employs eight or| more persons for any portion of a day in twenty different weeks dur- | ing the calendar year. For prac-| tical purposes, if an employer has eight or more year-round employees, | he is subject to the tax. The several weeks in each of which occurs a day on which eight need ot be consecutive weeks, and | it is not necessary that the indi- | viduals so employed be the same | individuals; they may be different | individuals on each such day, and | it is not necessary that the eight| individuals be employed at the| same amount of time or for any particular length of time; it is suf- | jficient if the total number of indi- | viduals employed during the twen- ty-four hours of a calendar day is eight or more, regardless of the length of service during the day. | | “Pitle III" does not cover the| {following employments: | Agricultural labor; domestic serv- | ice in a private home; services performed as an officer or mem-, ber of the crew of a vessel on the | navigable waters of the United jStates; services performed by an| &mdlvldlml in the employ of his son, daughter or spouse, and services of twenty-one years for his father (or mother; services performed in (the employ of the United States, | la State, Territory, or political sub-\ division thereof or services of a| | charitable, religious, scientific or| educational organization. The tax must be paid on all re- | Compensation Act. performed by a child under the age | own unemployment compensation {.M.tute the employer may apply |against the amount of the Federal | tax for which he is liable, any sum up to ninety per cent of the Federal tax which he is required to pay; in other words, the em- ployer must pay the Federal tax at all events; if there is an Un- employment Compensation Act in his Territory he. may pay ninety per cent of the Federal Tax to his territorial unemployment compen- sation fund and the remaining ten per cent to the Federal Govern- ment; this ten per cent or so much by the Federal Government to the Territory and is to be used for the administration of its Unemployment Compensation Act,—if one is en- acted. “Title TII"” prescribes certain con- ditions to be met in the enactment of a Territorial Unemployment Under it it is n ary to set up public employ- ment offices through which the unemployment compensation is handled. There are other require- ments to be met not of sufficient interest to be dealt with here. It follows from what we have Telephone 476 FRESH TENAKEE CRABS EVERY MONDAY California Grocery [ THE PURE FCODS STORE sation Act our employers will nev- ertheless be required to pay the taxes mentioned and neither, they, their employees nor the Territory will receive any benefit from such payments, and here is the prin- ciple reason why the Territory may practically be compelle? to inaug- |urate the system, cumbersome and expensive though it may prove under our conditions. As already stated the Federal Act |requires certain prerequisites for approval of a Territorial unemploy- ment compensation law. Such an ‘nct must provide that all moneys | paid into the fund wil! be deposited |in the U. 8. Treasury and that un- | employment compensation cannot be denied to employees out on strike or lockout, or out of work 11 employers who on each of some |0f it as is necessary, is "'f““ded;aecaue of refusal to work at wages substantially lower than those pie- | vailing in the locality far the |same class of work. Many of the States have enscted such legislation and it would seem to me that, considering the ques- tion from all its angles, we of this Territory should do likewise. (BRIER 4/ NOTICE TO PUBLIC On and after Jan. 1, 1937, and feed will be sold only for ¢ on delivery. D. B. Femmer. 114. coal L PR 4P el ast : Permszgent Waves $2.5v ap. Phone —adv. or more individuals are employed |¢aid that if we do not enact a 666. : A Prompt Delivery For Prompt, Safe, Efficient Service CALL A CHECKER CAB “Deliciousty Different Foods™ Catering to Banquets and Private Dinner Parties THE TERMINAL b r