Evening Star Newspaper, October 1, 1936, Page 32

DOUBLE PENSIN PLANDSIONTED Drastic Changes Held Nec- . essary if Social Security Set-up Works. ~ The far-reaching eflects of the new social security program, now @ leading topic in the national po- litical field, are discussed here in the twelfth of a series of articles based on a first-hand survey of the operation of the system in several States, as well as of the central ad= ministration in Washington. BY BLAIR MOODY. As was inevitable in a sweeping economic experiment, humanely con- ceived, but hurriedly executed, the double system of pensions set up for the aged by the social security act dovetails about as perfectly as the proverbial square peg and round hole. The two programs—one providing direct relief through the States on a straight pension basis, the other a contributory annuity plan admin- istered by the Federal Government— were projected in the hope of re- &solving once and for all the problem of want among the Nations’ old folks. One was to supplement and comple- ment the other. Together, they would be a rounded whole. If it is to work out that way, there | will have to be some drastic changes. For, while neither system can ade- quately carry the entire load itself, and either would be too expensive if it tried to, together they present a disjointed, conflicting picture, filled with irritating injustice and uninten- tional discriminaton. If they swng into full speed as they now stand, they will turn us—along about 1950— into a Nation of neighborhood revo- lutions. It came about in this way: The ad- ministration (and therefore Congress) recognized that the job of working out a decent, orderly program for care of the old would have to be tackled. It | realized also that if it merely promised a pension to every one who could pass a “means test” at 65, the objective of promoting a feeling of economic security in the average man would not at all be attained. Viewpoint of Workman. For what workman expects to be a subject of charitable pension when he is 65? He may dread it, but he is not going to build his hopes and plans on it. Any one who can pass a ‘means test” can get relief now. A pension check might be a trifle more dignified than a grocery order, but promise of such a future would certainly not change the collective economic out- look of the Nation. If the program was going to mean anything to John W. Citizen, there- fore, it had to be lifted from the realm | of “relief.” It had to be something toward which the workman could look forward with anticipation, which would be his as a mater of right and Rot because he took the pauper’s oath. So the contributory plan for old- age “benefits” was brought forward. Here was something on which a self- respecting worker could build. He would be buying security for his own old age, just as if he had purchased an annuity in a private insurance company. When he retired, his monthly income would be his as a matter of contract with the Gov- ernment, not charity. He would be in position to step aside and take things easy, paving the way for a younger man to take his place and, perhaps, for promotions of younger men all along the line. But to achieve anything close w‘ universal security it was still impossible to abandon the straight pension sys- tem. The only way that appeared to make the contributory scheme self- supporting was to tax the wages of workmen whose incomes could be “reached” and make them the bene- ficiaries. There would still be a sub- .stantial minority, estimated at 47 per cent, who would not be touched. If they were to have security, it would have to be on a straight grant basis. It all seemed to work in together. For if the “means test” were re- moved and a straight pension grant- ed every one, the cost to the general taxpayer after 10 or 20 years would be stupendous and increasing. Yet it ‘would not be so great at first. There- fore while the contributory reserves were piling up, the pensions would carry the load. After that, the annui- ties would take over the main brunt of it. Joe Workman’s Problem. All very well in general terms, but how about the effect on the individ- ual workman? What will happen to Joe Workman, who starts paying 1 Jper cent of his wages to the Gov- ernment on January 1 and later antes 3 per cent and finally reaches the age ©f 65 all aglow, perhaps, at the thought of his life-time annuity? . Well, first, he finds that what he thought was his as a matter of right isn't his. He has bought and paid for his annuity, but can’t have it unless he retires. If he works until he dies, it is true, 3! per cent of his wages g0 to his family as a death benefit. But the fact remains: If he does not consider his annuity adequate to live on, and prefers to keep his job, he can Wwhistle for his money. Now, what prospect is there that the workman would think his annuity worth quitting his job? The maximum is $85 a month. But this amount can be reached only by & worker whose salary averages $3,000 8 year for 43 years. He must start at 22 at $250 a month and keep it up until he is 65. (The only exception would be a person on the pay roll of imore than one employer. Thus, a millionaire with diverse investments, on the pay rolls of several corpora- tions as a director or officer at $3,000 ‘or more, would pile up the right to the $85 benefit in a comparatively few years because $3,000 of his pay from 4ach company would count. But he ADVERTISEMENT. Gas, Gas All The T%me, Can’t | Eat or Sleep y stomach 'tl so bad my as I sl fing v » % ’.i‘ Fl?l and ne tr lelt ““Or Al 1"" "“lell“"h.n BOTH u) uiuhu m 5 Dr. Shoud, Neiw York, rep " gdition s Dineotingl Sleanoras; Adlerika Jvtnt!y reduces bacteria and | colon b Rll G“ ! on "0 Al uufifi'nu- wouldn't need it and the little fellow- worker on one job couldn’t get it.) If the $85 is quite unattainable, then, what could the worker expect? ‘Well, the maximum benefit any one can receive after 10 years of work (and taxpaying) is $37.50 a month. After 20 years, the maximum would be $56.25. A workman who gets $100 & month and pays taxes on this wage for 15 years can get an lnnlmy of $27.50 a month. More for Not Working. Now suppose our friend Joe quits and takes the $27.50 that he has bought and paid for. He may sud- denly hear some morning that Jack Doolittle, next door, who never held a steady job in his life and puld no pay roll taxes, but can pass a “means test” and can prove his family needs G » substantial amount each month, is drawing down $30 s month. Or suppose Mr. Doolittle has a wife ‘who is also very hungry and together, from the assistance program, they collect $60 a month? That will be more than Joe or any other ‘“con- tributor” will be drawing from the trust fund he helpad to build. What will Joe do? What would you do? What's more, the pressure already has' started on Congress to increase the straight pension level. Beside the ‘Townsend $200-a-month idiocy, $30 seems a pittance and $50 small enough. ‘With no tax bill attached, how many Congressmen will vote against a measure to increase pensions? And, if they do, how long will they sty in Congress with the rival candidate at home promising the world with & STAR, WASHINGTON, fence around it and calling the in- cumbent a flint-heart for “squeezing the poor old folks” And what will the contributory an- nuity of $27.50 a month look like to the chap who's paid for it when some one who hasn't contributed can, with his wife, draw down up to $100 a month? Is the answer to boost the schedule of benefits under the contributory program? Perhaps, except that in order to promise the present schedule of rates, the Government has had to delve into the realm of stratospheric mathe- maticc and bounce up with a “re- serve” fund of $47,000.000,000. Mean- while, the opposite school of thought advocates & pay-as-you-go plan— WOODWARD & LOTHROP 10™11™ F AND G STREETS Puone DIsmicr §300 150 Dozen Imported Handmade HANDKERCHIEFS Special I 8C Pure Irish linen handkerchiefs, all handmade, appliqued and :ml;rot'- dered in China. These are really attractive handkerchiefs at this low price. HANDKERCEIEFS, AIsLy 17, FIRsT FLOOR. All white, white with colored accents, and solid colors. Six for § In Time for Your Fall Suits All-Wool COATINGS—SUITINGS Yard $2 Regularly $3 to $3.50 A special purchase brings this low price on the season’s smart wool suit- ings and coatings—including nubby and boucle weaves, homespuns fleeces and novelty rabbitshair. Deep Fall colors as well as pastels suitable for children’s wear. Some are in suit and coat length only. All are 34 inches wide. ‘WooLzws, Srconp FLOOR, Splendor Model 304 Coil Springs. Thuftless, No Buttons. Smooth Top, Heavy 8 - ounce Blue Covering. Pre-built Borders. Taped Edges. Heavy Felt Padding. Side Ventilators and Handles. A Limited Quantity at a Reduced Price— Stearns & Foster TUFTLESS MATTRESS $3 7050 Reduced from $44.50 This reduced price is strictly limited to the quantity in stock. No special orders will be taken—so it will be wise to make your selection early. Built with heavy felt in tuftless, smooth top that mku for easy sleeping and relaxation. Covered in the best heaviest quality 8-ounce ticking. Box Spring to match, $37. 50 Broome, Sixre FLOOR. ¢, THURSDAY, OCTOBER 1, 1936 c.o:mhun‘ & 12 per cent pay-roll PFigure oui the answer for your- self and, if you can, write the boys st the Bocial Security Board s letter. They would like to have it. (Copyrisht, 1936, by the North American Newspaper Alllancs, Inc.) —_— Japan’s control of business is less drastic than was anticipated, VIRGINIA BUS LINE ASKS TO ABSORB COMPETITOR $320,000 Purchase _Price for Peninsula Transit Corp. Is Proposed to I. C. C. The Richmond-Greyhound Lines, Inc., yesterday applied to the Interstate Take a Tip From Nature Seed Your Lawn in the Fall ‘This is the natural time for plants to scatter their seeds. It is the season for you to plant lawn seed and get best results. Use Scott's weed- free Lawn Seed and Turf Builder, the combina- tion that has produced thousands of America’s finest lawns. ASK FOR A Commerce Commission for permission to absorb Peninsula Transit Corp., « bus competitor between Baltimore, Washington and the Virginia Peninsula. The purchase price proposed is $320,000. The contract would exclude the franchise Peninsula holds for bus operation between Washington and Annapolis, via Defense Highway and Ceniral avenue. The application says unified operation will provide better service, -— ‘Weeds of unrecognized species have appeared on farms in Great Britain. HAT WORKS 522 10th St. N.W. Adjoining Peoples Drug Store “Just a Step From F” "WQODWARD & LOTHROP DOWN STAIRS STORE Friday Remnant Day Remnant Day Merchandise is not returnable or exchangeable; not sent C. 0. D. or on approval; telephone or mail orders not accepted. Women’s and Misses’ Dresses Reduced 159 Street Dresses for women and misses, in crepes, plain and prints. Were $10.95 and $13.95. Now $5 134 Dresses, assorted sizes for misses and women, in plain colors and prints, chiffons and crepes. Were $7.95 and $10.95. Now ---$3.50 28 Dresses in Summer materials, Broken sizes for women and misses. Slightly soiled. Were much more. Now $1.95 Cotton Dresses, 95¢ Originally $2.95 and $3.95 85 dresses in a variety of wash fabrics, voiles, pique, Stringspun, net, muslin, cotton lace and eyelet. Prints and plain colors. Sizes for misses, women and larger women. Sizes 14 to 20, 38 to 44, and 46 to 50. 53 Suntan Dresses and sleeveless styles in pique, Shantung- 16 Evening Dresses, slightly soiled; broken sizes for mmm ‘Were $10.95 and $13.95. Down StAms Storr, Dresszs, Juniors” Dresses 53.50 Were $595 & $7.95 38 acetate v-:repe dresses in light colors, sizes 11 to 17. 53 Cotton Dresses in prints and plain colors, broken sizes 11 to 17. Were $195 and $295. 21 Flowered Chiffon Dance Dresses, some with jackets. ‘Were $7.95. Now.__ -85 Down Stams Sron! Foundations, $]-73 Were $2.95 to $4.95 14 pieces in a group includ- ing one-piece foundations and girdles. Broken sizes. Reduced for clearance. 27 Pieces in a group including girdles and garter brassieres. Reduced for clearance. Broken size assortments. Were $150 and $1.95. Now... -95¢ Down Stams Storr. Misses’ Coats, $[-95 Were $5.95 19 unlined wool coats in navy blue, sizes 12 to 20. 11 Misses’ Fleece Coats in coral, shrimp and iris. Sizes 12 to 18. ‘Were$10.95and $16.95. Now $6.50 26 Suits for Women and Misses, two and three piece styles, in tan, brown, black and navy. Sizes 12 to 20, and 42 to 44. ‘Were $10.95 to $16.95. Now $7.50 12 Women’s Dress and Sports Coats in navy and black. Sizes 38 to 44. Were $10.95 to $16.95. 15 Misses’ Sports Coats in mix- tures and solid fleeces. Sizes 12 to 16. Were $10.95 to "895 Down Srams Storr, Coats, Girls’ Dresses $3.95 Were 3595 37 two-piece knitted dl’ellel, rust, brown, navy, . Broken sizes 10 to 18. l. Suede-like Fabric Jackets in broken sizes 8 to 16. Were $1.95. Now..oo__________$145 9 Woel Spring Suits, two and three piece, in sizes 12 to 186, $1395 and $16.95. ———---3$8.95 Dowx Srams Sroms, to 20. Were $1.95 and $2.95. weave cotton, broadcloth and gingham. Misses' sizes 14 Mow oo S Dowx STAIRS STORE, INEXPENSIVE DRESSES. Boys' “Model” Shirts Special 58c 840 youths, juniors and button-on styles with regu- lar and Duke of Kent collars. Fancy checks, stripes and plain colors. Full cut. Sizes 5 to 14%2. 140 Boys’ Wool Caps. Many colors and patterns to choose from. Were $1. Now. 10 Boys’ Wool Suits with two pairs of knickers and sports back coat. Gray or brown. Sizes 8, 10, 11, 15 and 16. Were $10.50. Now $7.50 32 Boys' Wool Sweaters in coat and slip-over styles. Sizes 32, 34 and 36. Were $1.95 and $2.50. Now.. --SL15 DowN STAIRS STORE. Men’s Shirts, 95¢ Were $1.35 and $1.55 500 men’s shirts in fancy stripes and patterns with regular collars and button-down Duke of Kent collars. Pre-shrunk fabrics. Sizes 14 to 17. 3 Men's Sweaters in slip-on style. Sizes 36 to 44. Were $295. Now $1.55 3 Men's Terry Cloth Robes, slightly soiled, in medium size. Were $1.95. Now T $1 DowN STAIRS STORE. Fall Hats, 3| Were $195 and $2.95 50 Fall hats in felt and silk, in black, brown and navy. Assorted headsizes. DowN STAIRS STORE. Handbags, 7 3¢ Were $1.50 and $1.95 48 bags in leather and crepe, brown and black. DowN STAIRS STORE. Service and Chiffon Hose 58C (Irregulars) 720 pairs from a new shipment, in darker Fall shades. Slight irregularities in weave that will not affect wearing qualities. 822 Pairs Socks including boys’ golf socks, ribbed ankle * socks, and 3 lengths, in plain colors. Some have weave 15¢, 2 for $25¢ DowN STAms STORE. Acetate Sports Dresses, *|*° Were $395 and $595 70 dresses in washable acetate crepes. sleeves. Sizes 14 to 44. 50 Cotton Blouses in organdie, lawn and dotted Swiss, in tallored and dressy styles. White, maize, pink, bluemd orchid. Were $1 to $1.95. Now. umm-nwpamwmmmuumummm shirts and slacks.- Broken sizes but good color ranges. Were $1 to $2.95, 35¢ 40 Bathing Suits, all wool, and & few in rubber. Broken sizes. Were $1.95 to $3.95. Now. 68c 50 Cotton Dresses in prints and plain colors. Sheer Sume mer fabrics, Sizes 14 to 18. Were $1.95 to $2.95. Now ... DowN STAIRS STORE, SPORTSWEAR. Short Children’s Dresses | $|-45 Were 5195 50 dresses in plain and printed cotton. Broken sizes 1 to 6 years. 50 Pairs Flannelette Pajamas, one-plece, size 2. Were 58c. 28 Knitted Legging Sets, three and four piece, in pink, blue and white. Broken sizes 1 to 3. ‘Were $2.95 and $3.95. Now, $1.95 23 All-Wool Snow Suits, three- plece, sizes 2 to 6. Were $5.95. DowN STAIRS STORE, INTANTS, Rayon Satin Slips 95C Were $1.65 48 slips in purple, dark green, navy, wine and rust. Slzes 34 to 44 in the group. 55 Cotton Slips, semi-fitted, vee top, and built up shoulder styles. Sizes 36 to 52 in the ‘Were 68c and T78c. 35¢, 3 for $1 DOWN STAIRS STORE. Rayon Negligees 50c were 5195 55 in pink only, small sizes. 17 Pairs Flannelette Pajamas, two-piece styles, soiled from display. Sizes 15, 16 and 17. Were $1. 10 Pairs Flannelette Pajamas, soiled from display. Sizes 15 to 19. Were $1.50. Now__.95c 26 Satin Gowns, mostly tailored styles, sizes 16 and 17. Were $1.95. Now ---95¢ 27 Pairs Balbriggan Pajamas with novelty blouses and plain color trousers. Sizes 15 to 17. Were $2.95. Now........ DowN STAIRS STORE. Juniors’ Shoes 52.50 Were $3.95 75 pairs for sports and dress, includmgb Oxfords and pumps in black and brown calf and also pumps in black patent leather. Broken sizes. Down Stams StoRE. Women's Shoes 52.50 Were $3.95, §5 150 pairs including black and brown suede Oxfords, straps and step-in pumps. High and medium heels. Broken sizes. Dowx STAIRS ETORE.