/ • •••*
- — ■ ..i--..... 1
(U. 8 Weather Bureau Forecast .1 The OniV CVeiling paper
Generally fair tonight and tomorrow: s- iu „
^ slowly rising temperature tomorrow; gen- Washington With the
tie east, wiftds, becoming variable. Tern- Associated Press News
M”: and Wirephoto Services.
Full report on page A-9.
Closing N.Y. Markets, Pages 13,14 & 15 Some Returni Not Yet Received.
No. 33,337. g^T'offlge.'tfSS&ZnX'Z_WASHINGTON, D. C., FRIDAY, AUGUST 9, 1935—THIRTY PAGES.*** on M..n. A..oci.t.d Pr..., TWO CENTS?"
NEW YORK UNIONS
CALL OUT 15.000 IN
W.P. A. PAY STRIKE
Spread of Walkout to Other
Large Cities Threatened
► “SITTING TIGHT” POLICY
ANNOUNCED BY JOHNSON
Labor Heads Protest $93.50 Wage
Would Give Employers Wage
By th# Associated Press.
NEW YORK, August 9.—Launch
ing a strike movement which threat
ens to encompass other large cities,
union representatives today made fly
ing visits to call 10.000 to 15.000
! skilled workers away from Works
Progress Administration jobs in pro
test against the Government's secu
The extent of the strike and the
number of union workers respond
ing to the call could not be estimated
A “sitting tight” policy was pro
claimed by Gen. Hugh S. Johnson.
New York administrator of the
W. P. A.
He had been in communication with
members of his organization at vari
ous projects, he said, and had been
told of the action of union officials
in enlisting laborers.
“I intend to sit tight and see what
happens," he said.
.* Regarding the possibility of the
Strike spreading to other parts of the
country, the former N. R. A. head
“I am concerned with New York
City only. The W. P. A. program
is not in operation in other parts
of the country.”
In defiance of warnings cast by
Gen. Johnson and Harry L. Hop
* kins, national head of the W. P. A.,
George Meany, president of the State
Federation of Labor, declared:
"Our people are going out to stop
union men on the job. They will
continue to do so until further
See Excuse to Lower Pay.
The unionists protest that the
security wage of $93.50 a month
paid skilled workers w-ould be seized
upon by private employers as an ex
cuse to lower wages.
Hopkins warned that those who
walked away from their jobs would
be speedily replaced, and that the
strikers must look to city and State
agencies for relief.
Gen. Johnson, in a fiery plea to
labor delegates last night, told them
they were the “chestnut rakers of
contractors and Communists."
At Atlantic City, William Green,
president of the American Federation
of Labor, predicted spreading of the
walk-out, adding that his organiza
tion was assuming a hands-off policy,
and was not interfering with the
strike action of local unions.
One Project Halted.
At Gen. Johnson’s office it was said
that the strike had completely halted
work on but one project in the city—
the As tor slum clearance work.
“The Government can’t give an
Inch,” said Johnson. “What it has
done is right and fair, and all that
It could do with the means at hand.
“We are giving jobs to 100,000 per
sons supporting half a million people,”
he said. “If we are not hindered we
will give jobs to 250,000 bread winners
for more than a million people. * * *
“Where we should have good will we
are offered a Kilkenny cat fight—a
bickering brawl, ill will, hatred, riot
and maybe bloodshed.
Loves Worth-While Fight.
“Lots of us love a fight, but it ought
to be in a fine, great cause to make it
worth all this.”
Johnson told the union delegates
that skilled workers were “never bet
ter off” than with the assurance of
six months work at $93.50 a month.
He said they were being duped by
Communists and selfish contractors.
He called it a “ghastly shame.”
The answer was appointment of a
committee to make sure that each of
the 36 unions involved called its men
off the Federal jobs. More than 700
already had walked out.
Navy Strike Held Failure.
PHILADELPHIA. August 9 (IP).—
Naval officers said a strike called by
leaders of relief workers on Philadel
phia Navy Yard P. W. A. projects was
See W. P. A., Page 4.)
Of Firing Help for
Three Organized Office
Workers Give Board
Did the International Bricklayers.
Masters and Plasterers' Union dis
charge three members of the Book
keepers, Stenographers. Typists and
Accountants’ Union for union activi
This question is one of the first
problems that will be presented to the
Labor Relations Board as soon as the
members of this board, legally in ex
istence since July 5. are named.
Benjamin J. McNally. Charles W.
Dougherty and Frank Dewer. clerical
workers at the Bricklayers' Union
office in the Bowen Building, 815 Fif
teenth street, were dismissed after
they obtained salary increases through
John J. Gleeson, secretary of the
Bricklayers’ Union, declares the dis
charges, which became effective the
same day the labor relations act was
made law. were the result of an econ
omy wave. ■*
The clerks' collective bargaining
protest was made when clerical sal
aries in the union office here dropped
to $12.50 a week.
JAMES W. 9ERARD.
INM IAT0R ROLE
British Press Says Former
Ambassador Speeds to
Rome for Talk.
j By the Associated Press.
LONDON, August 9.—Published re
ports purporting to disclose that the
j United States is taking an active inter
! est in the Italo-Ethiopian controversy
! preceded Anthony Eden's return to
1 London today to make final prepara
j tions for tri-power conversations,
j British press reports said James W.
1 Gerard, former United States Ambas
' sador to Germany, was hastening to
I Rome at the request of the American
Government to talk over the situation
with Premier Benita Mussolini of
Ignoring the fact that Gerard re
tired from the American diplomatic
service 18 years ago and presenting no
positive authority for their statements,
the newspapers pictured Gerard as
! an unofficial observer and possible
Recently in London.
Gerard was recently in London and
has been vacationing on the French
I State Department officials at
Washington said they were not ac
quainted with any order sending
j Gerard to Rome as an official Amer
! lean representative to discuss the
Italo-Ethiopian situation. Gerard
served at Berlin until the breaking off
of diplomatic relations on American
entrance into the World War. and has
not been connected with diplomatic
I service since then.)
Foreign office experts and other
officials headed for lengthy consul
tations with Eden, minister for League
of Nations affairs, in the limited time
remaining before his departure for
Paris Tuesday to talk with French
and Italian representatives.
1 Although British government cir
i cles were looking forward to the
Paris talks with gloomy foreboding.
| there were no signs of surrender of
; their determination to avert war by
| 9ny means possible.
Final Decision Favored.
They indicated recognition that the j
j issue should be decided once and for
all at these talks, leaving nothing un
done before the League of Nations
Council meeting in September to in
quire into the entire East African
Authoritative sources said Eden's i
strategy at the conversations would i
be to hold back and let France and
Italy do the talking first.
The government's decision to let
France take the initiative presuma
bly was based on a feeling here that
France, for the moment, was likely to
have more influence over Italy.
It was understood that Britain
(See ETHIOPIA, Page 4.) j
CUPPER FLIGHT THIRD
Pan-American Giant Craft to Hop
for Wake Island.
ALAMEDA, Calif., August 9 (£>).—
Under the command of a new skip
per, the Pan-American’s clipper ship
was groomed today for a flight to
tiny Wake Island, 5,000 miles away.
The big 19-ton flying boat, blazing
a trail for proposed passenger service
between California and the Orient,
was scheduled to take off at 3 pm.
<6 p.m. Eastern standard time).
Capt. R. O. D. Sullivan will be the
skipper on the flight—the third of its
series of trans-Pacific hops. He was
second in command under Capt. Ed- j
win C. Musick when the first two j
flights were made. Capt. Musick now j
is in the East on business.
CALLED BV LAVAL
Police Ordered to Clean Up
Agitation Centers, With
Troops Ready to Assist.
WOMAN IN RED DRESS
LEADS TOULON RIOTERS
House-to-House Search Brings 40
Arrests and Discovery of
By the Associated Press.
PARIS, August 9.—With troops
ready but out of sight, the French
Government today ordered police
forces to clean up agitation centers.
Premier Pierre Laval ordered the
prefects of all France’s 86 depart
ments to confer with him immediately.
It was the first such conference ir.
the history of the French Republic.
A somewhat easier attitude pre
vailed as the laborers in the govern
ment arsenals at Toulon and Brest
went back to work and the French
Line employes at Le Havre voted to
end their strike.
The object of the prefects' confer
ence was understood to be the de
velopment of a more favorable atti
tude on the part of government em
ployes toward the pay cuts which the
government deems necessary for ica
sons of economy.
Agitators Are Warned.
Government officials said the riots
of the last few days, which reached
a climax last night in Toulon, “seemed
to be organized disorders” but “un
likely to continue.” The government
warned agitators to be quiet but in
structed the troops, held ready lor
action, to remain in the background.
vast network of police was thrown
over Toulon’s riot scenes and a house
to-house search today brought 40 ar
rests and the discovers’ of manv
Police said they seized “a regular
arsenal" in one house in Toulon where
two, wounded were hiding. They
brought out many small arms, sev
eral gas masks, and a few submachine
The police everywhere were in
structed to watch agitators and to
be firm but to avoid shooting. The
'authorities at Toulon said that the
guards held their fire even when the
mob was shooting last night.
Premier Laval refused any compro
mis* in the shipping strike, but the
French line agreed to compensate the
sailors for their pay cuts, decreed by
the government. The end of the
strike enabled the steamship Cham
plain to sail from Le Havre at 2 p.m.
—two days late—and the steamships
Colombie and Lafayette to depart on
Regardless of complaints and pro
tests. the premier held firmly to his
deflation program. He assembled the
prefects to ensure uniform and speedy
application of his program and to
explain how the reduction of incomes
was compensated by lower costs of
living and how all the Government
measures were Intended to revive
business and to avert a financial crisis.
Paris had its own little midnight
battle outside a Communist meeting,
where a score of political adversaries
waylaid and beat four Communists.
Two were taken to a hospital.
Two Killed in Toulon.
‘ Two persons were known to have
been killed in the wild night of riot
ing in Touion. The port demonstra
tions spread to Lorient for the first
time as 2.000 arsenal workers paraded
(See FRENCH, Page 5.)
COLLAPSE OF BRIDGE
CAUSES 2 DEATHS
Two Others Rescued as Car Is
Plunged Into River at *
La Crosse, Wis.
By the Associated Press.
LA CROSSE, Wis., August 9.—The
west end of the Municipal Bridge link
ing Wisconsin and Minnesota col
lapsed today, plunging two persons to
death in the Mississippi River.
The victims, Mr. and Mrs. Francis
Landrieau of La Crosse, were drowned
when their automobile, caught on the
bridge, dropped into the river.
Fischer Blinn. 33, of Trempleau,
Wis.. and Miss Marceline Patro, 25. of
Minneapolis, were rescued from the
The car smashed Into an iron girder
at the top of the west approach. As
the machine caromed off, the western
most span of the bridge, damaged in
a similar accident three years ago,
gave way, hurling the car into eight
feet of water.
Too Many Bodies in Murder
Puzzle Nebraska Authorities
By the Associated Press.
LINCOLN, Nebr.. August 9.—Ne
braska authorities today wistfully re
called murder mysteries where no
corpus delicti ever was found and
pondered the latest mystery in which
; they have more bodies than they know
how to explain.
Fred Frahm, serving a 10-year term
in the Nebraska Penitentiary in con
nection with the death of his brother
John, a wealthy Glendale, Ariz., oil
operator, seven years ago. apparently
had the key to the mysterious case,
which has had officers counting on
their Ungers for a week, but he told
The case excited moderate attention
until early in 1934, when a body, iden
tified then as that of John Frahm,
was dug up m Garden County. On
the basis of that corpse, Fred Frahm
was convicted of manslaughter.
Last week, after six months in
prison. Fred Frahm drew a map and
handed it to State Sheriff Fred Ben
ton. Cheyenne County authorities,
guided by the map, went to a deserted
* f r
spot near Sidney. Nebr.. and dug up
another corpse. Fred Frahm claims
the body Is that of John Frahm and
maintains the other one was “planted
Fred Frahm told Benton and County
Attorney P. J. Heeton of Cheyenne
County several conflicting stories, then
clamped his mouth shut and called for
his lawyer, C. L. Baskins of North
Baskins told his client he was lucky
to have drawn only a 10-year sen
tence and went back home. Then
Frahm Issued a signed statement his
brother had been killed by a hit-and
run motorist November 9, 1928.
"Frahm told me he gave us the
map to get even with Garden County
authorities,” Benton said. "He claimed
they railroaded him to the pen on
Frahm la reasonably safe in his 10
year term because the double-jeopardy
provision of the Constitution forbids
trying him again for slaying his
YOU DON'T THINK
THE CHIEF'S COIN'
TCall this ^
j COL A. E. WILLIAMS
OUSTED 0 )
President Approves Guilty
Verdict and Sets Dis
missal for August 12.
By the Associated Press.
President Roosevelt today approved
the court martial verdict of guilty
against Brig. Gen. Alexander E. Wil
liams. former assistant quartermaster
general of the Army, and ordered him
j dismissed from the service effective
Williams, who holds the permanent
rank of colonel, was found guilty on
May 23 of having solicited and ob
tained a loan from Frank Spetcer, an
automobile tube salesman, while he
was assistant to the quartermaster
general in charge of the transporta
j tion division.
The court-martial recommended
that Williams be dismissed.
Dern Ordered Probe.
The charges were preferred as a re
sult of an investigation by the in
spector general of the Army at the
t direction of Secretary Dern. They
revolved around numerous allegations
of lobbying activities in the War De
partment by representatives of auto
mobile and other concerns.
A native of Linden, N. C, Wililams
was graduated from West Point in
Williams was found guilty of "so
liciting and obtaining a loan of $2,500’’
from Spicer in connection with War
Department contracts and of giving
false testimony by denying the loan
before a House Committee.
An Army court-martial has no dis
cretion except to recommend dismis
sal if an officer is found guilty of the
1 charges preferred against him.
The President has discretion in
commuting any recommended sen
tence. But. despite recommendations
by members of the court that he
exercise clemency in Williams' case,
he failed to do so.
Not Eligible for Pay.
Williams is not eligible to draw re
tired pay, which, after more than 30
years’ service, would have amounted
to three-fourths of his base pay of
In announcing the court-martial
verdict, the War Department said
Williams knew the "representative of
an automobile tire concern was at
tempting to favorably interest him in
his tube in order to secure War De
! partment contracts.’’
Williams was awarded the Distin
guished Service Medal for exception
ally meritorious and distinguished
services in France and also the Silver
Star for gallantry in action against
the Spanish forces at Santiago, Cuba,
ROOSEVELT TO FISH
ON WEEK END TRIP
Keeps San Diego Exposition in
Mind for Journey After
By the Associated Press.
Seeking relaxation after a busy
week of conferences, President Rose
velt put aside affairs of state to leave
late today for a week end fishing
He invited a party of friends to
accompany him. They will board the
Government yacht Sequoia at An
napolis, Md„ tonight for a cruise down
The President still is keeping in
mind a longer trip—to the Pacific
coast to attend the San Diego Exposi
tion. But the exact time depends on
the adjournment of Congress.
White House attaches say Mr.
Roosevelt intends to remain nere for
at least a week after adjournment to
put into operation the social security
program and other measures.
Then it appears more than likely
he wUl visit his home at Hyde Park,
N. Y., before turning westward.
If this plan is adhered to, it prob
ably will be late September before
Mr. Roosevelt starts for the coast. His
route remains unsettled, White House
aides say, but some believe he will
visit Vice President Gamer in Texas
and Senator Robinson in Arkansas.
Robinson is up for re-election in 1936.
The general expectation is that the
President will make some speeches
during his travels. No set political
; speeches have yet been announced.
‘Go Home Fever’ Hits Congress;
Early Adjournment Is Seen
-- —— - -
Veteran Members Look for End of
Session at Any Time] Perhaps
by End of Next Week,
Rr (h» Ac^nriatari Pri»s«
Congress has a bad case of the “go-home fever" which signifies to veteran
members that it won't be long now.
Adjournment, some say. may come by the end of next week, or perhaps
the week following. No definite date has been fixed, but many of those
who know their Congresses say it's not far off.
On the other hand, some are still predicting the session will last sev
eral weeks. They point to a sizeable^
amount of legislation still awaiting
Signs of the nostalgic fever have
been in evidence for a week, however.
The mercury has risen perceptibly
since the House passed the tax bill
Parliamentary physicians say the
sure symptom of the fever is when the
patient stops talking and goes to work.
That's what he has been doing all this
Signs of the aggravated condition
have been most apparent in the Sen- i
ate, which can talk longer when it's ,
not in a hurry and act more quickly
when it is. than any other parlia
mentary body in the world.
Since Monday the Senate has been
passing bills almost without debate
and patching up long-standing con
ference disputes with the House as
(See ADJOURNMENT, Page 4.)
Brief Special Message Re
quests Sanction of Pacts
Agreed To by States.
By the Associated Press.
Congressional sanction of State oil
conservation compacts was requested
by President Roosevelt today in a
brief special message.
The President confined his recom
mendation for oil legislation at this
session to approval of the understand
ings reached among oil-producing
Copies of Agreements.
He transmitted to Congress cer
tified copies of the approval of the
agreement entered into at Dallas. Tex.,
last February 16 for control of pro
The certified copies came from Ok
lahoma. Texas, California and New
The President’s message to Con
“To the Congress of the United
“I transmit herewith a certified
copy of the State compact to con
serve oil and gas, executed in the
City of Dallas, Tex., on February 16,
1935, by the representatives of the
States of Oklahoma, Texas. California
and New Mexico, and recommended
for ratification by representatives of
the States of Arkansas, Colorado,
Illinois. Kansas and Michigan.
“The compact signed by represen- ;
tatives of these States has been de
posited in the Department of State
of the United States.
"I also transmit a report of the
Secretary of State, from which you
will observe that notification has been
received by the Department of State
of the ratification of the compact by
the Legislatures of the States of New
Mexico, Kansas. Oklahoma, Illinois,
Colorado and Texas.
“I recommend that the Congress
enact legislation giving the consent of
Congress to the State compact to con
serve oil and gas executed at Dallas,
Tex., on February 16, 1935.”
Finance . A-13-14-15
Lost and Found_A-9
Serial Story _A-10
Short Story _B-10
This Changing World_A-3
ON UTILITIES BILL
Conferees, However, Defer
Consideration of '“Death
By the Asaociated Press.
Another peaceful session of the Sen
ate-House conferees on the public util
ity holding company bill today brought
them nearer to a showdown on the
"death sentence" provision, but con
sideration of this controversial point
was deferred probably until next week.
An afternoon session of the conferees
was called with a view to speeding up
agreement on less controversial fea
tures of the bill in an effort to get a
final compromise without deferring ad
journment of Congress.
Senator Wheeler, Democrat, of
Montana, sponsor of the Senate sec
tion providing for elimination of all
but "first degree" holding companies
by 1942. said “some House provisions
have been accepted and some Senate
provisions." He declined to go into
In keeping with an agreement with
the House members, all advisers,
iSee LOBBY, Page 5.)
FIRE DAMAGE $40,000
Boston Water Front Storage
By the Associated Press.
BOSTON, August 9.—The Boston
water front was threatened for a
time this afternoon as fire of unde
termined origin broke out in the Quincy
cold storage plant, a huge brick
structure. Fire apparatus from all
sections of the city brought the flames
under control with the aid of fire
boats. The first unofficial estimate of
damage was $40,000. One fireman
Damaged Plane Landed Safely
AtNewark After TripFromD.C.
uy tne Associated rress.
NEWARK, N. J., August 9—While
police, firemen and ambulances waited,
a crippled transport plane ■'•'as
brought to a thrilling, but safe land
ing at Newark Airport today.
The ship’s retractable landing gear
had jammed, and efforts to fix it
while the plane was en route from
Washington to Newark had been un
High over Baltimore, Co-pilot Al
bert Duke had made a hazardous
climb over the wing, found that the
right wheel was out of line and made
vain efforts to remedy the trouble.
Duke and Pilot S. W. Willey took
off from Washington at 6:13 this
morning, and a warning light in
formed them of the difficulty.
For 20 minutes the large plane cir
cled Newark Airport, persons on the
ground watching it tensely. Duke
and Willey had radioed Newark to
prepare for an emergency landing,
and eight pieces of fire apparatus,
YEAR DELAY PLAN
FOR JAMBOREE IS
AIM OF OFFICIALS
No Local Danger Feared
From Increase of Paral
ysis in Virginia.
WHITE HOUSE PARLEY
President's Statement Due to De
cision to Safeguard Scouts
and Allay Concern.
A year's postponement rather than
complete cancellation for the National
Jamboree was the hope today of of
ficials who have erected a great
tented city on the Potomac for 26,000
Boy Scouts, some of whom already
were proceeding to Washington when
preparations for the jamboree were
halted late yesterday by President
Meanwhile District health officials
feared no local danger from the recent
increase of infantile paralysis in Vir
ginia which caused Mr. Roosevelt to
cancel the jamboree ''with deep re
gret.” The last week saw an increase
of 91 cases in Virginia alone, while
mild epidemics were reported in other
The Scout officials who halted dele
gations from all States and many na
tions in their march on Washington
are reluctant to abandon the elab
orate plans made for the first Na
tional Jamboree In the United States.
While no official announcement was
forthcoming, various executives said
a postponement until next Summer is
logical and even probable.
The decision to concel the jamboree
was reached at a White House con
ference late yesterday attended by
Surg. Gen. Hugh S. Cumming, Dis
trict Commissioner George E. Allen
and Dr. James E. West, chief Scout
The President, himself a victim of
infantile paralysis 14 years ago, prom
ised he would deliver a speech pre
viously scheduled for the jamboree
at 8:45 p.m. on August 21 over a
Nation-wide radio hook-up.
A White House announcement said:
“The President was advised by the
surgeon general. Commissioner Allen
and Dr. West that the decision
reached by the conferees was based
on the prevalence of poliomyelitis in
two epidemic centers in Virginia
within 100 miles of the District of
Columbia and the increased prev
alence in other sections of the
"While this prevalence was not con
sidered to be unduly alarming, the
conference decided it would be ir the
best interest of the Scouts and all
concerned to cancel the jamboree."
Public health officers said the two
epidemic centers in Virginia are Rich
mond and Charlottesville. Surg. Gen.
Cumming emphasized there is “no un
due prevalence” of the disease in
“We waited until the last day.” Dr.
Cumming explained, "because we had
hoped the epidemic would burn itself
out. Instead, the disease has in
“We thought it much better to pre
vent any apprehension on the part of
parents and State health officers who
might fear that the epidemic would
be brought into their States oy re
"It was with a great deal of regret
that we reached our decision.”
Yesterday’s White House conference
(See SCOUTS, Page 4.)
TO ACT ON AGENTS
Investigation of Liquor Charges
Calls Half Dozen to Wash
ington for Parley.
By the Associated Press.
Secretary Morgenthau Is expected
to announce a decision early next
week regarding his investigation of
the alleged activities of Treasury
agents in Cleveland and Detroit who
have been charged with being con
nected with liquor establishments.
The Treasury declined to say who
brought the charges and emphasized
that they might be found groundless.
A half dozen agents have been
called to Washington for a confer
ence with Treasury officials. It was
charged specifically that some had
been connected with certain com
panies in Ohio and Michigan whose
business consisted of distributing
Morgenthau is spending the week
end at Cape Cod. No announcement
will be made until his* return to Wash
ington next week.
amouiances rearing nuapimi uut
tors and nurses, and police were at
Herding the passengers into the rear
of the ship, which was completing a
New’ Orleans-to-Newark run, Willey
glided in at an angle to allow the good
left wheel to strike the ground first.
The unusual shock of landing sprung
the defective wheel into line and the
plane speeded over the runway safely.
No one was injured. The rear
wheel of the ship, an Eastern Airliner,
was broken by the weight of the
Two Boarded Ship Here.
Two persons boarded the plane at
Washington Airport this morning, but
airline officials said they registered
only as "Mrs. Day” and “Mr. Coyle.”
The landing gear on the ship was
functioning properly at the take-off
here, it was said.
Pilot L. W. Willey and Co-Pilot
Albert Duke are veteran flyers. Both
Uve in Newark.
Private Pension Action Is
Slated at Next Session
COMMITTEE IS NAMED
FOR INTERIM STUDY
With Measure Already Passed by
House. Approval in Senate
Is Probable Today.
BY J. A. O’LEARY.
Confident a method of preserving
private retirement systems can be
worked out separately at the next ses
sion of Congress. Senator Clark.
Democrat, of Missouri will not oppose
final action in the Senate, probably
this afternoon, on the administration's
vast social security program.
The House late yesterday approved
without debate the decision of the
conferees to eliminate the private
pension amendment, with an under
standing that House and Senate sub
committees would continue to work
toward a solution of that problem
during the recess. ’ ,
Senator Clark’s announcement this
morning that he will not fight the
conference report clears the way for
speedy Senate approval, which will
send to the White House for signa
ture one of the most far-reaching
pieces of legislation enacted in recent
Features of Bill.
The bill has three main features:
First—Outright grants to the States
to help them pay gratuities to needy
persons 65 or over and grants for a
variety of other welfare purposes in
cluding home care for dependent chil
dren, care of crippled children, pen
sions for the blind, maternal aid and
public health work generally.
Second—Establishes a Federal old
age insurance system for those now
employed in industry, with a tax on
employes and employers, starting ir
1937. The theory of this plan is that
as persons now at work build up theii
own old-age annuities, the burden of
paying the gratuity pensions under the
first heading will diminish gradually
It was in this part of the bill that
Senator Clark tried to give industries
j that have voluntarily built up retire
! ment plans, equal to or better than the
; Government proposal, the right to re
1 main out of the Federal contributory
j tax system.
Third—The bill seeks to induce the
States to enact unemployment insur
ance laws by levying another pay roll
! tax on employers only, and then
allowing them to deduct as much as
' 90 per cent of this Federal levy if
a similar unemployment tax is put
into effect in the State.
$3,000 Pay Limit.
The pay roll taxes paid by em
ployes and employers under the Fed
j eral old-age insurance system would
not apply to that portion of a salary
in excess of $3,000 a year, and the
benefits paid to the employe when
he retires at 65 would range from
S10 to $85 a month, depending on
his pay level and length of service.
To make this entire program apply
to Washington Congress still must
pass three separate District bills which
already have gone through the House.
Chairman King of the Senate Dis
trict Committee, who also took an
active part in drafting the national
bill, will call a meet mg early next
week to act on the District bills.
Two of the local bills are to enable
the District to share in the Federal
grants for old-age and blind pen
sions. and these measures virtually are
ready to be reported. The third Dis
trict measure is the Ellenbogen un
emplojTnent insurance plan, which
would make the District law more
drastic than the standards in the
j national bill or in any of the half a
j dozen State laws passed up to now.
j The Senate committee is considering
a series of amendments to this bill.
Compromise for Speed.
In making known that he would not
I resist passage of the national bill to
| day. Senator Clark said the private
and governmental experts who worked
during the past week to reach a com
promise on the private pension amend
ment were in agreement on the basic
principles of a settlement, but in
I formed the conferees yesterday they
needed more time to perfect the ac
tuarial details. They thought they
could do it in another week or 10
j days. but. with Congress trying to ad
journ soon, the conferees decided to
; drop the question for the time being.
Chairman Harrison of the Finance
; Committee immediately named the
v following Senate group to work with
a House subcommittee on the private
(See PENSIONS. Page 2.)
Proposed to Stop
McLeod Introduces Bill
for House and
Br the Associated Press.
A Joint congressional committee to
help head off "hasty passage of un
constitutional legislation" was pro
posed today by Representative McLeod,
Republican, of Michigan.
He introduced a bill to authorize
such an advisory body, composed of
two Democrats and two Republicans
from the Senate and House Judiciary
Any member could obtain the com
mittee’s jpinior by challenging, in
writing, die constitutionality of a bill.
McLeod desr ribed his measure as
“a step toward eliminating the costly
waste of public funds made possible
by the na3ty passage of unconstitu
tional legislation such as the N R. A.,
which ran up an expense account of
more than a hundred million dollars
before checked by the Supreme Court.’’
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