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Annual Report of the Department of Public Welfare, Covering the Year from December 1, 1936, to November 30, 1937, Is Herewith Respectfully Presented

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Annual Report of the Department of Public Welfare, Covering the Year from December 1, 1936, to November 30, 1937, Is Herewith Respectfully Presented Public Document No. 17 €&e Commontoealtf) of ;#ta£gacfw0ett0 ANNUAL REPORT OF THE DEPARTMENT OF PUBLIC WELFARE FOR THE Year Ending November 30, 1937 PARTS I, II, AND III Publication or this Document approved by the Commission on Administration and Finance 2500. 7-'38. Order 4555. 3CT 19 1938 ' . TOje Commontoeaitf) of JWajetfarimsette DEPARTMENT OF PUBLIC WELFARE Walter V. McCarthy, Commissioner To the Honorable Senate and House of Representatives: The Eighteeth Annual Report of the Department of Public Welfare, covering the year from December 1, 1936, to November 30, 1937, is herewith respectfully presented. Members of the Advisory Board of the Department of Public Welfare Date of Original Date of Appointment Name Residence Expiration Dec. 10, 1919 George Crompton . Worcester . Dec. 1, 1939 July 1, 1931 Harry C. Solomon, M.D. Boston . Dec. 1, 1937* Dec. 1, 1935 Mary T. Roberts . Chestnut Hill . Dec. 1, 1938 Dec. 1, 1935 Anna E. Pigeon Belmont " . Dec. 1, 1938 Jan. 15, 1936 Morris Bronstein Boston . Dec. 1, 1937* Dec. 1, 1936 Frederick P. Schmid Boston . Dec. 1, 1939 Divisions of the Department of Public Welfare Boston Division of Aid and Relief: Room 30, State House Frank W. Goodhue, Director Miss Flora E. Burton, Supervisor of Social Service Mrs. Elizabeth F. Moloney, Supervisor of Aid to Dependent Children Edward F. Morgan, Supervisor of Settlements John B. Gallagher, Supervisor of Relief Bureau of Old Age Assistance : 15 Ashburton Place Francis Bardwell, Superintendent Division of Child Guardianship: Room 43, State House Miss Winifred A. Keneran, Director Division of Juvenile Training: 41 Mt. Vernon Street Charles M. Davenport, Director Walter C. Bell, Executive Secretary Miss Almeda F. Cree, Superintendent, Girls' Parole Branch C. Frederick Gilmore, Superintendent, Boys' Parole Branch Subdivision of Private Incorporated Charities: 15 Ashburton Place Miss Florence G. Dickson, Supervisor of Incorporated Charities Miss Alice M. Mclntire, Supervisor of Incorporated Charities Miss Mary C. Robinson, Supervisor of Incorporated Charities Subdivision of Town Planning: 14 Beacon Street Edward T. Hartman, Visitor to City and Town Planning Boards Subdivision of Crippled Children: Room 549, State House Miss Margaret MacDonald, Supervisor Institutions under the Supervision of the Department of Public Welfare State Infirmary, Tewksbury. Lawrence K. Kelley, M.D., Superintendent Massachusetts Hospital School, Canton. John E. Fish, M.D., Superintendent Lyman School for Boys, Westborough. Charles A. DuBois, Superintendent Industrial School for Boys, Shirley. George P. Campbell, Superintendent Industrial School for Girls, Lancaster. Miss Catharine M. Campbell, Superin- tendent 209 State Board of Housing: ' Washington Street ', ;•» .""• ••" •*' John Carroll, Chairman .. ; * * No appointment made. .', - • 2 P.D. 17 PART I REPORT OF THE COMMISSIONER OF PUBLIC WELFARE Of great importance to the Department were the studies conducted during the year by the Special Commission on Taxation and Public Expenditures. The Commission devoted itself to months of intensive study and research. The results of its findings have been presented in the many pages of factual material, and its conclusions have been expressed in the recommendations set forth in the several parts of its report. In its attempt to reduce expenditures and to achieve economy and efficiency in government, the Commission made a thorough study of the relief problem, and, in addition, undertook and completed studies of several state departments with a view to recommending improved administration techniques and procedures. Under the caption "Relief to Real Estate," the Commission report makes the following statement: "It should be unnecessary to depict further the deplorable condition into which real estate as an investment has fallen. In general it may be said that in our revenue system the real estate tax is the deficiency tax. As a result, when total expenditures increase, and there is no natural growth in the receipts from income and excise taxes, the entire increase falls upon real estate. In recent years the cost of government has increased faster than the taxable sources. The trend has been one of increasing expenditures and decreasing revenues from other than the real estate tax. The fundamental and only cause for taxation is expenditures—and expenditures alone. These expenditures can be met only out of taxation. As a result of the rapid increase in expenditures in recent years, real estate has become overtaxed, and is now paying an unfair share of the total revenue derived from taxation. "The expenditures of the Commonwealth and its political subdivisions approxi- mate $400,000,000 annually, of which about $100,000,000 is derived from miscel- laneous state, county and municipal receipts, and approximately $300,000,000 is obtained from taxation. Real estate is paying over $200,000,000 annually, or about 65 per cent of the revenues derived from taxation. The excessive tax burden upon real estate has already brought into play the law of diminishing returns. When this chief source of revenue fails, government itself fails." The above statement is of particular significance since relief in the Commonwealth is almost wholly financed from revenue derived from real estate taxation. In this connection the Commission will recommend "An Act imposing an emer- gency public relief tax upon the sale at retail and use of tangible personal property and establishing a public relief fund." Preliminary reports of the Commission indicated that the purpose and objective of its study in relation to the problem of welfare would be to present "all facts con- cerning the extent and scope of public assistance in Massachusetts." This should prove to be one of the most important parts of the Commission's report from the point of view of the continuous rising relief expenditures and from the point of view of instituting more effective administration for all welfare activities in the State. In meetings with members of the Commission and its consultants the Commis- ( sioner emphasized the serious problems faced by the Department in being obliged to deal with 355 separate Boards of Public Welfare. The Commissioner advised that a partial solution of the problem would undoubtedly result through the medium of a merger of several towns; that legislative action should be recom- mended authorizing towns to combine for the purpose of setting up local welfare districts with provision for financial participation by the State in the form of reim- bursement for a part of the expenses of administration. Closely related to the local welfare district plan, but not requiring legislative sanction, is the area office plan which the Department has been studying this year. Appropriations have been requested to cover the rental costs of such area offices. The plan is based on a division of t^e State into* six districts with a State office located in each area, through ar/d from w&icjiiwojuld flow all functions of relief for which the DeparWeht ha*s a responsibility. It is the Commissioner's opinion that the possibility of partial consolidation of local units does not reduce in the slightest Pt. I. 3 degree the necessity of decentralizing the State Department's field operation on a district or area basis. At the present time, with the multiplicity of local administrative agencies ad- ministering relief, the Department faces a real and difficult problem in its attempt to properly supervise the varied relief activities. The Department desires to offer leadership to the cities and towns on a sound and practical basis. It is clearly apparent however that a basic reorganization of local government for purposes of public welfare administration must be effected in the very near future to enable the State to establish an effective, efficient and practicable system of State supervision. All of the studies made to date indicate very definitely that certain changes in the administration of relief in the Commonwealth must be made. The Commissioner and officials in the Department are in general agreement with those who recommend such changes. They can and will be made if all agencies and officials involved will face the problems honestly, courageously and in a full spirit of cooperation. As is true in so many problems of this character, no real progress is ever made by over- emphasizing faults and weaknesses to the extent that real constructive recom- mendations are thereby subordinated. Duties of the Department of Public Welfare The State Department of Public Welfare has the following principal duties: 1. Supervision over the five state institutions of the Department: State Infirmary, Tewksbury. Massachusetts Hospital School, Canton. Lyman School for Boys, Westborough. Industrial School for Boys, Shirley. Industrial School for Girls, Lancaster. 2. Direction of public relief, both indoor and outdoor, given to unsettled persons by cities and towns. 3. Supervision of aid to dependent children rendered by cities and towns. 4. Supervision of old age assistance rendered by cities and towns. 5. Visitation of boards and inspection of financial accounts of cities and towns with respect to old age assistance and aid to dependent children in conformity with the requirements of the Social Security Act. 6. Care and maintenance of delinquent, neglected and dependent children coming into the custody of the Department through court commitment or otherwise. 7. Institutional custody and treatment of juvenile offenders committed by the courts to the three State
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