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UNITED STATES MOVES TOWARD NATIONALIZED MEDICINE! By MARJORIE SHEARON Editor, Challenge to Socialism, Former consultant to Senator Robert A. Taft No. E-358-59 Popular protests failed in this ments and had to prepare for his President Signs the Social instance. Thousands of telegrams first news conference since his Security Bill, H.R. 7225, and letters must have reached attack of ileitis. There was scant Despite Nationwide Misgivings the White House urging veto of time to study such a complex H.R. 7225. Was the President bill as H.R. 7225. Perhaps the President Eisenhower signed kept in the dark about this long-range implications of that the Social Security Amendments Nationwide opposition? Did the bill seemed less important than of I956 (H.R. 7225) late on President's advisers tell the other transient, but pressing con­ Wednesday, August 1. The new Executive it would be politically siderations. law lowers the retirement age of inadvisable to veto a Social These facts may have contrib­ women from 65 to 62 and author­ Security bill? uted to the President's quick izes cash disability benefits for This is no time to succumb action in signing. But had none workers at age 50 if they become to despair. of these crises arisen at this time, permanently and totally dis­ he would probably still have abled. Why Did Eisenhower Sign signed for the simple reason that The law sets up a Disability Democrat's Bill and Repudiate his advisers would have led him Insurance Trust Fund as an en­ the HEW Secretary, Folsom? to believe that failure to sign tity separate from the old-Age No simple analysis can set would be political suicide in an and Survivors Insurance Trust forth all the forces that played election year. Fund. Beginning January I, on President Eisenhower urging What made the advisers so I957, it increases Social Security him to sign the Democrat's Social conclude? We believe the answer taxes by 74.' per cent each on Security bill. Discounting politi­ to these questions is to be found employers and employees, and cal maneuvers in Congress as in the strong bond existing be­ yg per cent on the self-employ~d. mere surface manifestations, we tween organized labor and Social The aggregate tax increase next must look deeper for the com­ Security officials. They have year will be $850 million. pelling forces that governed the worked as one for over 20 years. There is grave danger that en­ President. Why did he sign a bill When the Democrats were in actment of a law authorizing the he had not sponsored? Why did power, the labor-Social Security Federal Government to initiate he repudiate the calm, profes­ coalition was restrained by an a cash disability insurance pro­ sional opinion of his own Cabinet opposition party. With the ad­ gram, however restricted it may officer, HEW Secretary Marion vent of a Republican Admin­ be at the start, will lead directly B. Folsom, who had testified istration, opposition weakened. and rather quickly to the com­ against H.R. 7225? Why did the Labor took control. plete nationalization or social­ President rush through the sign­ ization of medicine. ing in haste when he had a full Social Revolution Came From In the months ahead, there week more for deliberation? Europe to the New World in will be much soul-searching on To be sure, Social Security was Wake of Marx, Bismarck, and the part of those opposing the submerged under the debris from Fabians legislation. Obviously, large seg­ the Dump-Nixon bombshell. History can help our under­ ments of the population- prob­ Nasser and the Suez crisis con­ standing. We have been caught ably the majority of all adults ­ stituted another distraction. On up in a skillfully-managed social have failed to discover the way August first, foiiowing a long revolution. It is difficult to say to make their wishes felt in this weekend at his farm, the Presi­ when this revolution began. The Republic of ours. dent was busy with appoint- quest for economic security is as Page 2-E-358-59 of the Russian Communist "The modern State, as guard­ old as the race. Methods for its Party. And, finally, in that same ian of public health and national attainment have changed with year, a young student, a labor prosperity, considers it both a the centuries. In modern times economist by the name of Arthur right and a duty to impose com- the major milestones in that J. Altmeyer, in collaboration with pu1 SIOn . .•• " quest are clearly discernible. his Wisconsin University profes­ The ILO in 1927 pointed out Robert Owen, a Welsh social sor, John R. Commons, wrote a that numerous countries in the reformer, set a benchmark in brief paper extolling compulsory early 192o's had accepted the 1818 at the Congress of Aix-la­ health insurance. History had "principle of c·ompulsion." Great Chapelle, when he called for in­ set the stage for social revolution Britain and Russia in I 9 I I had ternational action on the length in the United States! followed Germany's lead. Soviet of the working day. Russia in 1918 had abandoned Altmeyer, Falk, and Davis Laid Nothing came of that proposal, public assistance and embraced but 20 years later a French re­ Groundwork in U.S. for ILO compulsory insurance. Later former, Louis Auguste Blanqui, Social Insurance Program Russia had incorporated this urging industrial reforms through In I9II, inspired by Bis­ type of insurance in its 1922 concerted action by competing marck's social insurance Ia ws, Labor Code. nations, said: the United States passed its first During the 192o's Socialists, "Treaties have been concluded workmen's compensation laws. Communists, and organized between one country and another That year Great Britain enacted labor in the United States de­ by which they have bound them­ its National Health Insurance manded enactment of social in­ selves to kill men. Why should Scheme and the world's first surance laws. The research and they not be concluded today for compulsory unemployment in­ planning for compulsory health the purpose of preserving men's surance Ia w. In I 9 I I, also, Russia insurance legislation were pro­ lives and making them happier?" passed its compulsory health moted by three men: A. J. Alt­ The idea of an international insurance law. Interest in this meyer (Ph.D. in labor economics, labor movement working movement spread to the United 1931, Wisconsin), Isidore Sydney through treaties was thus born a States. Falk (Ph.D. in bacteriology, little over a century ago. But the In Geneva the ILO was organ­ 1923, Yale), and Michael M. idea lay fallow for more than 50 izing under the leading French Davis (Ph.D. in socilology, 1906, years. In the meantime, Karl Socialist of that period. A legis­ Columbia). These were the soc.al Marx published in I 848 the Com­ lative program, based on Bis­ planners of the 192o's and '3o's. munist Manifesto calling for a marck's social insurance laws, graduated income tax and other was adopted by the ILO. Emis­ U.S. Recognized USSR, Joined taxes to redistribute wealth and saries went throughout the world the ILO, and Embarked on Plans mcome. preaching the Gospel of Geneva for Economic Security Law During the 188o's, the Fabian - Socialism based on social in­ Society took form in Great Brit­ surance and social assistance. Even as the Fabian Socialists ain. British Socialism was born. The ILO met with marked devoted themselves to "research, In Germany at the same time success in spreading its Gospel education, penetration, and per­ Bismarck, seeking new areas of as the basis of international So­ meation," so did our American taxation to exploit, initiated the cialism. In 1927, it published a Socialists of 2 5 years ago. payroll tax and social insurance. 794-page volume on Compulsory Financed by such tax-exempt Low-paid workers were promised Sickness Insurance, covering the foundations as the Rosenwald, cash benefits when sick, disabled, operations of such laws in 24 Milbank, Rockefeller, and or too old to work. "Free" medi­ countries. Referring to the Twentieth Century Fund, the cal care was also part of the spread of Socialism, following social planners viewed the State's welfare program. By 1891 Bismarck's lead, the ILO stated: Nation's health with alarm and a British writer noted that Ger­ "The workers' unions grew in asserted only national compul­ many, through its social insur­ number [after the 188o's] and sory health insurance would meet ance laws, had reached "the high­ strength; they began to group the health needs of the people. water mark of State Socialism." themselves into trade federa­ Organized labor found in these Coming to the year I 9 I 9, we tions ... The class sentiment was Socialist planners the ideal allies note three significant events. The spread and fortified by the pro­ in their drive for comprehensive International Labour Organiza­ pagation of Socialist teaching. social insurance. tion was created as an agency of The doctrine of State interfer­ The depression, the New Deal, the League of Nations, with ence acquired wide acceptance, and labor's rising tide concate­ offices in Geneva. Also in that so that old-fashioned laisser Jaire nated an unusual and auspicious year, the Communist Party, found itself hard pressed in the set of circumstances for such U.S.A., was established in the field of social and economic opportunists as Altmeyer, Falk, United States as a branch office policy . . . and Michael M. Davis. Page 3-E-358-59 In 1933 the United States re­ was made to include compulsory sumed diplomatic relations with health insurance. Roosevelt was and Charles Kramer (both Senate Russia. The next year we joined not ready at that time to go that Education Labor Committee), the ILO from which we had far. The hili became Ia w on Alger Hiss, etc. Pressman spoke remained aloof for I 5 years. August 14, 1935, as the Social peremptorily to Altmeyer. Wil­ Congressman George Holden Security Act. It created a Social bur Cohen himself belonged to Tinkham of Massachusetts, pro­ Security Board as an independ­ three Communist fronts. Com­ testing the ill-considered enact­ ent agency. munists permeated Social Secur­ ment of enabling legislation as Altmeyer moved in as one of ity, Treasury, Agriculture, Rail­ Congress was rushing to adjourn, the members of the 3-man Board. road Retirement Board, and the said: He broaght with him young Wil­ Senate Committee on Education "If the House desires to com­ bur Cohen as technical adviser. and Labor. mit the United States to inter­ In 1936, Faik, having been fired nationalism under the direction by the Milbank Fund, entered Labor, Government, and and control of propagandists the Social Security Board in a Private Lobby for State Medicine paid with money of foreign inter­ minor post. Michael M. Davis United to Form a Powerful ests, then let the House vote for served as a consultant, but never Interlock this resolution." joined the Board. Instead, from Lee Pressman and John Abt Ten days after Roosevelt that day to this he has worked slipped out of the Government signed the bill which sanctioned as the leading non-governmental in the early 1940's before their United States membership in the lobbyist for the nationalization Communist affiliations had been ILO, he created the Committee of medicine. discovered. They found berths in on Economic Security to draft As soon as the Social Security the CIO. The late Philip Murray an economic security bill which Act was upheld by the Supreme was then CIO president, James would conform with the princi­ Court on May 24, 1937, the staff Carey was secretary. On July 7, ples laid down in Geneva by the set to work to build a Social 1943, the Executive Board of the ILO. Altmeyer, Falk, and Davis Security Empire. Research pro­ CIO established a committee to served ·as technical consultants. jects were initiated to develop be known as the CIO Political William Green, president of the reports that would justify ex­ Action Committee. AFL, was on the advisory coun­ pansion in all directions. They Moving into the political cil. Among members of the work­ brazenly admitted that Social arena, Murray later announced: ing staff was a young man just Security was designed to redis­ "It will therefore be one of the out of college, Wilbur J. Cohen, tribute wealth. Marx and Bis­ major purposes of the committee and a youthful actuarial assist­ marck joined hands to make a to achieve united action, in the ant, Robert J. Myers, now the dual attack on redistribution. political field, with the AFL, the Government actuary. Falk's research staff in 1943 Railroad Brotherhood, and un­ Three months prior to these made the first draft of an omni­ affiliated unions." events, Harry Hopkins, WPA bus Social Security bill (S. I I 6 I). The late Sidney Hillman was Administrator, said: It died in committee under the made chairman of the CIO-PAC. "You aren't going to get health Democrats. But our American Communist Lee Pressman had insurance if you expect people to Socialists were not dismayed. already been made General do it voluntarily." They had taken their cue from Counsel of the CIO. John Abt, Hopkins then th<1ught he could the Fabians and had embraced Communist, was made legal ad­ put over compulsory health in­ the philosophy of "gradualism." viser of the CIO-PAC. It is re­ surance in I 8 months. Staff mem­ They bad time! If their compre­ ported "He participated in the bers of the Milbank Memorial hensive efforts failed one year, planning of every one of PAC's Fund, which included I. S. Falk, they at least had the satisfaction activities." said at that time that only in of attaining some of their objec­ Among the objectives set forth "large-scale compulsory health tives in each succeeding Con­ by the CIO-PAC were attain­ insurance" could they see "the gress. ment of: necessary and sufficient stimulus Representatives of organized "Good food, clothing, and for widespread improvement in labor were soon much at home medical care... medical practice." in the Social Security Board. So, "An income through social in­ too, were certain Communists. surance in case of unemploy­ Altmeyer Embraced Marx and In 1947 the House Un-American ment, sickness, old age, or early Bismarck in Scheme to Activities Committee learned of death of the wage earner." Redistribute Wealth by Dual the espionage activities of cer­ Roosevelt was reelected in Taxation Plan tain Federal employees. One cell, 1944 with the help of the CIP­ As the economic security bill now famous, was the W are-Abt­ PAC. Next year he died and was was being drafted in I 934, a Witt group which included Lee succeeded by Truman. On Nov. strong but unsuccessful attempt Pressman (WPA), John J. Abt 19, 1945, Truman issued a health Page 4-E-358-59 bills die:! without commg to a 20 years from their own party. message endorsing compulsory vote. Altmeyer retired in 1953. health insurance. On the same More elaborate plans were Cohen, eased out, went to the day the Wagner-Murray-Dingell made for 1947-48. Oscar Ewing University of Michigan faculty. bill, S. 16o6, was introduced to staged the National Health But they still formulate Social implement a national compul­ Assembly, Inc., in May 1948. Security laws and policies. Nel­ sory health insurance program. Nelson Cruikshank, AFL Social son Cruikshank, AFL-CIO, has Early in December, 1945, Insurance Director, Harry worked closely with Wilbur Michael M. Davis swung into Becker, UA W (CIO), Dr. Ernst Cohen for years. They sat to­ action. He induced some 200 P. Boas, and others tried to gether in the Senate galleryas persons- industrialists, writers, stampede the Assembly with a H.R. 7225 went through. Social artists, lawyers, economists, etc. compulsory health insurance Security staff were on the Senate -to endorse the President's recommendation. They failed. floor and in the gallery, doing health program. Of this number, But despite labor's efforts and labor's bidding. 166 became the charter members Federal lobbying, the compul­ Neither the medical profession of Davis' lobby, The Committee sory health insurance bill (S. nor the average citizen has such for the Nation's Health, which 1320) died in committee in 1948 an inside track in the Social was incorporated early in 1946. with Truman in the White House Security Administration, in the Ninety-one of the charter mem­ and a Republican-controlled halls of Congress, or in the White bers had subversive records. Congress. House as have the labor bosses. Honorary Vice Chairmen of the Tactics were changed in 1950. A thorough, fearless, non­ CNH included William Green The piecemeal approach was governmental investigation of the and Philip Murray. Through the adopted. It worked! Congress history of Social Security, the role years that followed organized enacted bills in 1950, 1952, and played by organized labor, and labor has been represented on 1954 to pave the way for disabil­ the influence of Communists the CNH Board o( Directors by ity insurance. Eisenhower has on Social Security propaganda such men as: John Edelman, just approved such insurance. should be widely demanded. The James G. Patton, Jacob Potofsky, Democrats got from Eisenhower law (H.R. 7225) should be re­ Emil Rieve, and John Lapp. what they had failed to get for pealed at all costs. Unions have contributed gener­ ously to the support of the CNH. To the EDITOR: Thanks for tear sheet sho·.ving how this Spotlight was used. There is thus a powerful inter­ H.R. 7225 holds out to women the deceptive hope of earlier retirement. To the PUBLIC: But if they retire at 62 instead of at 65, they lose, for the rest of their lock between Labor, Govern­ lives, 20% of their normal social security retirement income. A working ment, and a private lobby for woman, who has paid these taxes all her working years, will get only an So% benefit at the age of 62, whereas a widow who may never have pmd a cent toward social security, will ~et her State medicine. full age benefit at 62. Women, who are thus shortchanged, will rise in wrath when they discover the falseness and inequity of thesl' promises of "security." Altmeyer, Cohen, and Politicians running for election will tell citizens of the greater give-away but, at the same time, will keep silent over the fact that the added taxes during the first year of the increased Cruikshank Control the Social benefits will amount to $850 million, of which $20 million will go for administrative costs alone. Security Program and Dictate The collectivist planners '!VOrk tirelessly, having infiltrated government and labor unions. U.S. Laws Business men, who must pay one-half of social security taxes (for their employees) are passive. The bill, H.R. 7225, with the growing number· of insured, will add $4_%' to $5 billion to the total The Social Security Board in social security taxes during the next 5 years. What is worse, much of the disability insurance expenditure will be actually harmful, pre­ the mid-1940's worked in closest venting rehabilitation and the great satisfaction to the insured of self-support. cooperation with the Davis CNH For additional information on H.R. 7225, read Spotlight E-356-57, "H.R. 7225 -Back Door lobby and with organized labor. to Socialized Medicine," by Dr. Rumely, with highlights of Sen. Byrd's summary of adverse Senate Finance Committee report on this bill. 2 copies free; 20 copies for $I; 50 to 200 copies, On Dec. io and 11, 1946, Alt­ 4c each. meyer summoned 37 representa­ Social Security and socialized medicine have now been moved to the center of national interest. For the most comprehensive and best-informed current comment in this field, subscribe tives of 29 unions to discuss to "Challenge to Socialism," edited by Marjorie Shearon (Shearon Legislative Service, 9I27 Jones Social Security legislative plans. Mill Road, Chevy Chase I5, Md.) Year's subscription (40 copies) $I2.50; single copies, I5c. Representatives of the CIO, The most dangerous delusion entertained by the American people is that one can get some­ thing for nothing from government. And unfortunately this delusion is cultivated by politicians AFL, Amalgamated Clothing who, in their eagerness to buy votes with public funds, conceal the hard facts- that citize~s Workers, and three unions cited must themselves bear the costs and support, in addition, a costly bureaucracy. And, what IS worse, thrifty, self-supporting citizens have their voting p0wer cancelled by the votes of millions, as Communist controlled joined bought with taxpayers' moneys. in the deliberations. Distribute this Spotlight widely among fellow workers and shareowners, community leaders, clergymen. Send copies to candidates of both parties, expressing your viewpoint, asking whether The omnibus W-M-D bill (S. they wi!I pledge themselves to vote for repeal of H.R. 7225 and the appointment of a com­ 1050) of 1945 and the smaller mission to study broadly the problems involved in social security and H.R. 7225. health insurance bill (S. 16o6) Discuss this with your family physician. Urge him, if he agrees with your viewpoint, to order copies for distribution in his circles. Two copies free; 20 copies for $I; 50 to 200 copies, 4C each; had died in committee in 1946 I,ooo or more, 3c each, postpaid anywhere. after extensive hearings. Demo­ SPOTLIGHT subscriptions (I04) installments) : Single, $I2; 2 to 8, $I I each; IO or more, crats controlled Congress. Tru­ $IO each. man was in the White House. COMMITTEE FOR CONSTITUTIONAL GOVERNMENT, INC. But Democrat Social Security 205 East 42nd Street New York 17, N. Y.