Evening Star Newspaper, March 26, 1935, Page 10

A—10 TYDINGS ASSAILS CASH BONUS PLAN Negotiable Securities: Pay- ment Deemed “Just” Solution. Senator Tydings, Democrat, of Maryland, who served with distinction as & machine gunner in the World War, last night sounded a warning against the Patman and Vinson bonus payment plans and urged that a measure of which he is one of the sponsors be adopted instead. Speaking in p(,he Nationak Radio Forum, arranged by The Star and broadcast over a-Nation-wide network of the National Broadcasting Co., Tydings said that the “Patman and Vinson bills (do) pay more than now 18 due, the first with printing press money—a doubtful course for any ccounf to embark upon—and the Vinson. bill would add about a billion dollars more in interest to the ex- pense of paying off the bonus than would be required even if the Gov- | ernment waited until 1945 to cash in | on the bonus certificates.” | The Patman bill, sponsored by Representative Patman of Texas, Is | the measure passed by the House. Face Value Not Due Until 1945, Senator Tydings explained that the | face value of the bonus certificates is | not due until 1945, representing the | base bonus pay, and accrued interest | for 20 years. His measure, known as the Tydings-Andrews-Cochran bill, | proposes that in exchange for the bonus certificates, the veterans receive negotiable securities, which now would be worth slightly more than three- | quarters of the face value of the bonus | certificates. Retained until maturity, | of course, they would equal the value of the certificates. - He amplified that this method of | payment would cost the Government | no more than is conteniplated for re- demption of the bonus certificates. “It does justice to the ex-service- men; it does justice to the Govern- ment; it does justice to the tax- payer,” he said. | The text of Senator Tydings' speech | follows: | I am going to talk to you very ear- | nestly about an important matter now pending before the American Con- | gress. I refer to those bills which | seek to pay off in one manner or an- | other the soldiers’ bonus certificates. Now what is a bonus certificate? Do you know how the amount of money shown on the face of each vet- eran’s certificate was calculated? If you do not know, I shall first try to explain this, for unless you under- stand just how the amount due each veteran was arrived at, you cannot in- telligently pass upon the several bills dealing with this subject. Let me ex- plain. Congress passed the so-called bonus act in 1925. That act provided that every person who had served more than 60 days in the armed forces of the United States during the World War should receive for such service an additional pay. or bonus, at the rate of 81 per day for each day's| service within the United States and | $1.25 & day for each day's service out- | side the United States. 25 Per Cent Added. Due to the fact that this bonus law ‘was passed in 1925, seven years after the World War had closed, Congress added 25 per cent to the amount found to be due each veteran. Every vet- eran can count the number of days he served in our armed forces during the World War. within the United States and under this law he gets an extra dollar for each one of those days; likewise, he can figure how many days he served outside of the United States, and he knows he gets $1.25 extra for each day of that foreign service. Now if he will add 25 per cent of the amount that he finds that is due him, he will know exactly ::;n; ‘was coming to him in the year Let us take a specific case. Sup- pose a man served 275 days in a training camp during the war and the bonus act gives him $1 a day extra for such service, or $275 in all. Now suppose that after that training eamp service the same man served 100 days outside the United States. Yor that service he gets $1.25 a day, or $125. So, the $275 he gets for his service in the country, added to the $125 for his service outside the eountry, would give to that veteran $400., Then add to this $400 the 25 per cent extra which Congress al- lowed because the act was passed seven years after the war, and this man would have $500 coming to him a3 of the year 1925 as a bonus for his service during the World War. Used to Buy Endowment. Yet, any man who had $500 coming to him in 1925 for such service has gotten an adjusted service certificate for 81250, or two and one-half times, the amosnt of extra pay al- lowed for service under the bonus act. ‘Why is this? Because the $500 was used in 1925 to buy for such a veteran & 20-year endowment life insurance policy. This accounts for the fact ‘that every bonus certificate issued by the ‘United States Government to a war veteran contains an amount . of smoney due the veteran in 1945, which i3 two and one-half times what his actual bonlis pay would amount to as of 1928. I hope the veterans will understand this, for if every veteran will take his ‘bonus certificate and hold it in his hand he will see that the amount of money due him in 1945 is about two and one-half times what would ac- be coming to him ‘on the Hhsis of $1 a day extra for service in this country and $1.25 a day extra for “service abroad. All endowment life insurance poli- “eles increase in value each year, and THE EVENING STAR, WASHINGTON, D. C, TUESDAY,. MARCH 26, 1935. Talks on Bonus SENATOR TYDINGS. each bonus certificate is the 1945 value of that life insurance policy which the Government has bought for each veteran. Naturally, that bonus certificate, therefore, is worth less in the year 1935 than it will be in the | year 1945, Every year that the vet- eran holds on to his bonus certificate, which in reality is just a 20-year en- dowment life insurance policy, makes that bonus certificate worth more money. Three Bills Discussed. For example: In 1930 it was not worth half of the 1945 value; in the year 1935 it is worth more than it was in 1925 in the year 1945, when it ma- tures, it will be worth the exact amount of money shown on the face of the certificate. Now, ladies and gentlemen, I think T have made clear to you, first, that the | bonus act awarded extra pay to all ex- service men at a dollar a day for service in the country and one dollar and a quarter a day for service out- side the country during the World War. That when the amount of money found to be due each veteran had been ascertained, plus 25 per cent increase, it was used to buy each vet- also shown that the present value of that endowment policy is, of course, less than the 1945 value will be. Sa, if T have made all that plain to ou. as I hope I have. we now discuss with intelligence the various bills pending before Congress. There are | three bills now being discussed. I ‘eonsequently the amount shown on S —— THE ONLY TrainbetweenWash- ington andthe South- west offering pas- sengersthe exclusive services of a Train Secretary, Maid- Manicure and Valet. Leave Washington 6:30 P. M. Daily BALTIMORE & OHIO NATIONAL LiMmITED to Cincinnati, Louisville & St. Louis shall refer to them by the names by which they are best known to the oublic. First, there is the so-called Vinson bill, and, thirdly, the so-called Tydings-Andrews-Cochran bill. | The Patman bill and the Vinson bill are very much alike. | first two. The Patman and Vinson | bills would pay off in cash the full | 1945 value of the bonus certificates at | once, all regardless of the fact that | the present value of those certificates | or endowment policies. as I have here- tofore shown, is not what they will be worth in 1945. | Would Substitute Bond. On the other hand, the third bill, called the Tydings-Andrews-Cochran bill, in effect gives to each veteran the present value of his bonus certifi- | cate. Keep this essential difference ‘in mind, that the Patman and Vinson | bills pay off all the bonus certificates now in full, although they are now | worth less than their 1945 value, while the Tydings - Andrews - Cochran bill gives to each veteran a little more than the present value of his adjusted | service or bonus certificate. That is | eran a 20-year endowment life insur- | one of the principle points of differ- | ance policy, maturing in 1945. I have ! ence between the bills, but there are | other differences as well. The Patman !bill would pay off the veterans in | greenbacks to be especially printed for that purpose. The Vinson bill would pay off the veterans in regular money, such as is now in use, but that bill does not provide where the money is 'to be obtained with which to pay the Patman bill; secondly. the so-called | originally if the veteran wants to sell n v S . 50~ | The Tydings- | Andrews-Cochran bill differs from the | veterans. ‘The gs - Andrews- Cochran bill would substitute for each bonus certificate a regular Govern= ment bond, such bond to mature in 1945, the same year that the bonus certificates mature. The face of each bond, plus the 10 annual interest- bearing coupons attached to it, would give to each veteran the exact sum of money which he would have com- ing to him because of his bonus cer- tificate. Such bonds would be regular Government bonds. They are nego- tiable. If the veteran wanted to sell his bond now, he would get its face value, which is slightly more than three-quarters of the 1945 value of his present bonus certificate. If the veteran held on to his bond, then its face value, plus the annual interest-bearing coupons, would give him by 1945 the same amount of money he would get by surrendering his bonus certificate then. These are the simple elements of the three bills. The Vinson bill would cost the Gov- ernment in principal and interest about $1,000,000,000 more by 1945 than was provided in the original bonus law passed in 1925. Cost Would Be Same. Against this, the Tydings-Andrews- ernment any more or any less at any time than the bonus law originally provided. Under the Tydings-An- drews-Cochran bill the Government simply withdraws from the veteran one kind of obligation it already has out, called the bonus certificate, and gives to that same veteran another kind of obligation in the form of a Government bond, both the bond and the certificate maturing at the same time. All it would do, in fact, would be to substitute a negotiable Govern- ment obligation—that is, a bond with coupons attached—for another kind of Government obligation—that is, the | bonus certificate—which is not nego- | tiable. Under the Tydings-Andrews- Cochran bill would not cost the Gov- | |at my command were killed and | more than the Government owes him now. Such people take the position that it is the part of justice to all parties concerned, the veteran and non-veteran, that the Government of the United States ought not to be asked to pay the veteran in 1935 more than it agreed to pay him in 1945. Such a bill as the Tydings-Andrews- Cochiran bill creates no new Govern- | ment obligation, for the adjusted serv- ice certificates are now outstanding, anyway. These are payable.in 1945, Negotiable bonds, readily salable by any veteran who cares to do so take the place of said adjusted service cer- tificates now outstanding, so that the while the veteran gets all that is now due him in good money and the tax- payer pays neither more nor less to provide the funds than he would pay in 1945 anyway. Iam an ex-soldier myself. I served on the battlefields of France, arose through the ranks from an enlisted man to the high position of lieutenant colonel. I was a machine gunner and had the honor to command about 2,200 men and 144 machine guns in actual combat. The Government of the United States has done me the honor to pin two of its highest awards upon my breast. Many of the men wounded in that terrific holacaust winch plunged the world in misery. I am not unmindful of their sacri- fices. I shall never forget the war friendships, the comradeship of the officers and men with whom I served, | many of whom went forward to death. I say this not to be emotional, but because I think this permits me to see the soldier's point of view, as I think I see the Government's point of view and the point of view of the peo- ple at large. Ladies and gentlemen, we are still in the midst of a world-wide depres- | sion; 22,000,000 people in this republic look to Government for food and shel- Cochran bill the veteran gets all that is coming to him now, if he wants to sell his bond immediately, or what wants to sell his bond immediately: or | more than his extra service pay was | | his -bond immediately. The Tydings- | Andrews-Cochran bill makes it a crime, punishable by a fine of $10,000, | for any one to buy from a veteran a bond at less than its face value within a period of six months aftér the vet- eran receives the bond. This was in- | serted in the bill to prevent sharpers and speculators from exploiting the veterans, and in an attempt to insure that each veteran would get in cash, should he desire to sell his bond now, & hundred cents on the dollar of its face value. Now those who have been listen- ing, I think, have had clear and hon- est explanation of the essential ele- | ments of past and present bonus leg- the Government owes him now if he | & - ter. They are on the relief rolls. Ten or 12,000,000 more are out of em- ployment, hunting for work. should not lose sight of these But the islation. Which of these plans do vou prefer? It would be but human | for many veterans to want to get all that they can now, whether the Gov- ernment actually owed such amounts or not. If you are a non-veteran, then you will perhaps be human enough to say that the veteran should not get anything until 1945, as now provided in the bonus law. It would be wrong to decide such an important matter from the purely selfish viewpoint of the individual That would neither make right nor patriotism. ' No Right to Be Overpaid. The Tydings-Andrews-Cochran bill | supporters take the position that if the veteran is to be paid now. in the vear 1935, he has no right to pe paid | ; i ot handicap easy and Government's position is unchanged | ¢, mnditions in considering payment of the bonus 10 years before it is due. ‘The Patman and Vinson bills do pay more than is now due, the first, with printing-press money — a doubtful course, for any country to embark upon—and the Vinson bill. would add about $1,000,000,000 more in interest to the expense of paying off the bonus than would be required, even if the Government waited until 1945 to cash in the bonus certificates. The Tydings-Andrews-Cochran bill gives to every veteran slightly more than three-quarters of the 1945 value of the bonus certificate, but it costs the taxpayer no more than would hilve be raised anyhow to pay off the present bonus certificates in 1945. In short, it does justice to.the ex-service man, it does justice to the Govern- ment, it does justice to the taxpayer. It is mindful of the misery, the un- employment and the relief now being administered in all parts of the coun- try. If you agree that this bill—the Tydings-Andrews-Cochran bill, so- called, is fair to all parties concerned, I appeal to you to write to your two United States Senators tonight and tell them so and ask them if the bonus certificates are to be paid off now to vote for it in place of the other two bills, which I think I have proven by facts are not fair to all the parties how you feel about this and write with the interest of the veteran, the interest of the Government and the interest of the people at large, at hes~ We should be fair to each of them. i 1 Breach of Promise Bill. ST. PAUL, March 26 (A’n.‘Dumlge, suits based on alienation of affections | and breach of promise to marry would | be outlawed in Minnesota under a bill | introduced in the State Senate yes- | terday by Harry Wing. | concerned. Let your Senators know | The measure is similar to acts passed in Indiana and other States, Wing | said, adding that his move is designed | to “bar rackets on human affections.” | SAYS HE NEVER GETS THE BREAKS e He’s out of a job again—says em- ployers never give him a real chance. truth is—Joe neglects his appearance — often comes to work in need of a fresh, clean shave. Why should any man let stubble him? With today’s Gillette “Blue Blade,” frequent shaving is pleasant. Even two shaves aday, whennecessary, won'tirritate tender skin. Prove this yourself—try the Gillette “Blue Blade™! Reputable merchants give you what you ask for. In stores where substitution is practiced INSIST ON Gillette Blue Blades NOW 5/25¢ - 10/ 49¢ il "‘go where i FARM JOBS BEGGING' Single Men Said to Prefer Relief to Work Pay. MINNEAPOLIS, March 26 (#).—A shortage of farm workers this Spring was reported yesterday for the first time in several years by public and private employment agencies of the Twin Citfes. Many single men, who formerly sought farm planting jobs, now prefer public relief to farm work that pays $20 to $25 a month, plus board, room and lsundry, agency officials sald. The Minnesota State free employ- ment service reported it has more farm jobs than men to Al them. Private labor agencies in Minneapolis reported that the dally average of applications about balances with the farm jobs available, although there has been difficulty at times in sup- plying competent men. Rug Beauty Our Duty Call Mr. Pyle Nat. 3257-3291.2036 Sanitary Carpet & Rug Cleaning Co. 106 Ind. Ave. N.W. &reeting Cards A large selection for every occasion Make someone happier by sending a greeting card ‘BREW@D [ngravm and Printers 611 Twelfth Street, N. W. Pioneer’s “IDEAL" Laundry Service Is Complete!! . All table and bed linen is carefully ironed on the giant ironers shown above, then folded by hand; wearing apparel neatly folded (underwear may be worn without additional ironing) ; bath towels soft and fluffy. If you wish. men'’s shirts will be hand finished for only 10c each additional. Phone NOrth 1315 and ask for “Ideal” Service PIONEER LAUNDERERS DRY CLEANERS 920 Rhode Island Ave., N.E iy S you go beil fiond I give you the mildest smoke, the best- tasting smoke. I do not irritate your throat. You wonder what makes me different. For one thing, it's center leaves. I spurn the little, sticky, top leaves... so bitter to the taste. I scorn the coarse bottom leaves, so harsh and unappetizing. I am careful of your friendship, for I am made of only the mild, fragrant, expensive center leaves.