STATEMENT OF JOHN GARDNER, SAUGUS, MASS.

Mr. GARDNER. My name is John Gardner, Mr. Smith. I come from Saugus, Mass. I am going to cut it short, no verbiage, to make a couple of points which should have been made with more force although a number of the speakers previously have emphasized them. One is, too many experts. There are more experts it seems to me than there are senior citizens.

The next thing is that none of the bills proposed are adequate. Let's not quibble about a few pennies here or there. Cut out the charity completely. Everybody over 60 gets a minimum of $200 a month and completely free medical aid and no strings attached to it whatsoever. We are a rich country and we can afford it.

I would like to answer Dr. Jerome Whitney who testified in Springfield and it was reported in the Globe. He said, "Pay for this through social security, taxes will go up; we are on the old merry-go-round," Well, what I can say is this: that what he is saying is that the elderly citizens will have to go without because they cannot be paid for on social security. Let him put forth a program for addressing. We all know it can be paid for. Let's stop shooting off all these rockets and dropping bombs. That is where the money can come from. Senator SMITH. Thank you very much.

STATEMENT OF EDWIN C. CROSBY, GOLDEN AGE CLUB,

BROOKLINE, MASS.

Mr. CROSBY. Senator Smith, I am Edwin C. Crosby from Brookline. I am sorry that Senator Saltonstall and his friend are not here, they both left.

Everything in this country today is a racket. I don't care what it is, there is no question about it. You have got your labor unions, you have your medical society, you have your laws, you have your real estate group everything is a racket.

We have got probably 70 million people; we do not use our influence. We are more people than any combination of labor unions. We have a vote How many people here vote? Not many. They do not bother to vote, so we are to blame for the condition we got. Seventy million of us, we do not vote, we do not ask our families to vote. I bet nobody ever writes a letter to their Congressmen asking them what they want. How do the majority know what they want?

Senator Saltonstall got a wonderful hand here this morning. I wonder how many times he ever voted for the legislation we are working for right here?

Senator SMITH. Thank you very much.

STATEMENT OF ANNA P. HEWITT, GOLDEN AGE CLUB,

NORTH PROVIDENCE, R.I.

Mrs. HEWITT. Senator Smith, my name is Anna P. Hewitt. I am the former representative of North Providence and I belong to the Golden Agers. Mrs. Sanderson is our president. She was ill and asked me to come here today to represent her.

Here is a message that I would like to bring to everyone here today. I had a chance to speak to Senator Pell about our medicine aid and our

social security and different things not long ago. He said, “Mrs. Hewitt, I will tell you one thing; the Senate is willing to pass the bill but the House does not seem to want to. Now the only recommendation that I can make to you is to have anyone that has any friends outside of Providence write to their representatives and ask them why they do not get on the ball and want to pass these different bills for the Golden Agers. If they do," he said, "the Senate is ready but we cannot do it unless they do so."

So I am going to ask everyone here today to please write if you have any friends in California or anywhere and ask them to have their representative tend to their business on the bill or bills for the Golden Agers. That is something we need very, very badly.

Now I own my own home, I have lived in the town of North Providence 45 years. I have worked practically all my life as long as I could. I worked until 10 years ago. My husband and I have worked on small wages, on $12 and $14 a week. I have worked in the mill from 7 until 6 at night; didn't make much money but we managed to keep our home together and own our own little home.

Then I was stricken by cataracts and I have had five operations on my eyes which came along and took $8,000 of our money. At the present time I spend 56 cents a day-it was 5 years last June for two tablets that I take for my eyes or I would not be able to be here today. My eyes bulge and I cannot travel alone, I always have to have someone with me.

In that way I am speaking for myself and for others that are afflicted the same way that I am.

Now here a short time ago, about a month ago, the tax assessor came along and raised our rent to $73.80, and we have not a grand home by any means. Will you please tell me where all that is coming from? Roosevelt wanted us to keep out of the poorhouse but it looks to me as though we are going back to it if we do not get some aid.

Now I do hope that everyone will try and help us in Washington. That is where we have got to start, is right there. I do hope that everyone will try and get in touch with the different representatives. That is the only way we are ever going to get anything. They just keep passing the buck from one to the other; you speak to one and then the other.

Well, we will see what we can do. We will see what we can do, but they never do anything. So now let's get going and see if we cannot do something for the Golden Agers. I know I have worked very hard and I know there are a lot of other people here that have worked very hard. I am 70 years old and I would like to enjoy a little bit of the rest of my years as long as I am able to see.

Senator SMITH. Thank you very much, Mrs. Hewitt.

I would certainly like to say at this time that there are 21 members of the Senate Special Committee on Aging, and I wish there were 100 members and that each one of them could hear some of the testimony that you people are so effectively giving today. I am sure if they could all hear that, they would be in a much better position to pass the kind of legislation that you people are in favor of.

Mr. O'DONNELL. Let us give the Senator a big hand.

STATEMENT OF SAMUEL SEINIGER, BOSTON, MASS.

Mr. SEINIGER. My name is Samuel Seiniger. I live at 219 Park Drive in Boston.

Senator Smith and members of the committee, one of the previous speakers spoke of change of pace and my short subject is going to be a decided change of pace. The reason is that this suggestion which I submit respectfully will cost the social security nothing.

For those people who are in the age bracket between 65 to 72, recently a change has been made in the social security laws so that if they could earn from $1,200 to $1,700 they were able to keep half of that difference. May I respectfully suggest further broadening of that.

If the earner of $1,700 and up were given a 50 percent carryover credit of his or her forfeited payments from the social security system, to become effective at the age of 72 in additional annual payments, it would reduce the incentive to quit work, loaf, evade, or cheat, thus substantially reducing the present load on the social security system. I want to spell it out. For example, if the recipient is in the $100per-month category, or $1,200 per year, and continues in full employment from 65 until 72 years of age, the social security system saves 7 times $1,200, which equals $8,400, and risks potential refunds of 50 percent of $1,200, which equals $600, per year additionally if recipient survives the age of 72.

Now as we all know the social security system is a vast insurance system which is intended ultimately to pay for itself. Now this suggestion instead of costing the social security system actually should save it. At the same time, if someone intends to continue working, he has an incentive to do so. Thank you.

Senator SMITH. Thank you very much.

At this time I would like to call on Dr. Mary C. Mulvey, Administrator, Division on Aging, Providence, R.I.

STATEMENT OF DR. MARY C. MULVEY, ADMINISTRATOR, DIVISION ON AGING, PROVIDENCE, R.I.

Dr. MULVEY. Thank you. I had not intended to make a statement when I came up. I came with the Golden Agers and we are together from Rhode Island. Certainly I am proud of their performance here today.

I cannot say that I am quite surprised with the younger generation and that is why I come up to the microphone particularly. I didn't intend to, as I stated.

I wish to speak on the issue which the spokesman for the insurance. company raised this afternoon. He attacked the social security system of financing, and to me he was hitting at the basis of our democratic way of life because I think the social security system, the program, is the greatest thing that ever happened in our country.

I am not saying that the payments are adequate in every way for our senior citizens, you have heard the testimony to that effect this afternoon, but you certainly have made liberal strides and are trying to continue in that direction.

Now I would like to say this. An important principle of our American social security system and one that has been followed consistently in the development of the OASDI program over the years since it was established in 1935 has been to provide for sound financing. No aspect of the program has received more careful attention by you Congressmen. The Secretary of Health, Education, and Welfare is by law required to appoint an Advisory Council on Social Security Financing to make a periodic review of the financial soundness of the program.

The last advisory council, made up of distinguished economists, private insurance actuaries, bankers, social insurance and financial experts, as well as representatives of management and labor, in 1959, gave this summary of what they found. They said: "The method of financing in the old-age survivors and disability insurance program is sound, and based on the best estimates available the contribution schedule now in the law makes adequate provision for meeting both short-range and long-range costs."

And again I quote: "The contribution schedule enacted in July in the last session of Congress makes adequate provision for financing the program on a sound actuarial basis."

In enacting the several improvements in the program of 1959, Congress has included provisions for the financing of those improvements and for the future development of the program. We can feel confident that Congress will continue to make full provision for financing program changes.

Another important point of our social security financing is that the use of a payroll tax, a tax on earnings, has the effect of automatically increasing income to the program as earnings levels rise. The increase in income permits benefits to be adjusted somewhat in accordance with current levels of living and current prices. This is a very important point if you are providing service benefits like hospitalization benefits and so forth.

These characteristics, the objective to provide economic security after retirement, the method of financing the existing program, the work related benefits, the principle of paying benefits as an earned rate, the universal coverage of the program, are what have led President Kennedy and our own retired Congressman Forand and many others to propose a system of health insurance under the social security as the most practical approach for meeting the health costs of our aged population.

What he said got me teed off, and while I am here I would like to read a quote of Dr. Larson who is the president of the American Medical Association. This was in our Providence Journal a couple days ago, and this is what he says:

In many respects the aged group is better off than any other group in the Nation. Their liquid assets are higher and have risen faster than any age group. A much higher percentage own their homes free of mortgage. Their financial obligations are significantly less and they enjoy tax advantages not available to younger citizens.

Senator SMITH. Who wrote that?

Dr. MULVEY. Dr. Larson, the president of the American Medical Association speaking to the house of delegates on November 27. This appeared in our Providence Journal the next day, November 28.

Senator SMITH. Thank you.

Dr. MULVEY. Casual observation of the testimony today would certainly attest to the falsity of that statement.

Senator SMITH. Thank you very much.

STATEMENT OF ANN STRASBURG, MEMBER, QUINCY JEWISH COMMUNITY CENTER, QUINCY, MASS.

Mrs. STRASBURG. My name is Ann Strasburg. I live in Wollaston, Quincy, and belong to the Quincy Jewish Community Center. I am a widow, my husband has been dead 4 years. He left me with a home, a little money. That is going very fast for medication and medical bills.

Now what I want to know is, why people in my condition—I am not the only one, there are many more-why we cannot get a reduction in taxes, some sort of reduction, to help us hold on to our homes. I could sell my home. What would happen to that money? It would not last very long. I would have to pay high rental.

I do have two daughters. They want me to live with them. That is not for me, not with the youngsters. They are wonderful girls but I cannot stand the youngsters.

Now I say that in this country of ours widows who want to live in their home and are willing to work, work in their gardens and keep their home up, why isn't there a way to make it possible for us to stay as we were when our husband left us?

Also, I want to repeat what someone else said about the transportation. It costs 25 cents for me to go up to the corner. I have a heart condition. I cannot walk; I have no car. It costs me 25 cents to go a few blocks to get a few groceries. That is 50 cents, up and back. That is a lot of money. My monthly income is my social security. Now, how can I do that and clothe myself-and I make most of my clothes-and come out on top? I do not want to owe anyone any bills. I am not the only one; I repeat, there are thousands more like me. I am speaking for them.

Now when you speak of going into the hospital, I have been very sick. I did not go to the doctor. I finally did go. I was afraid. I have not gotten my bill yet. I am afraid when I do get the bill. I am going to be shocked into sickness when I do get the bill because there were many X-rays, many tests. I am very happy now, I feel better, but I hate to get that bill.

Now I do say we should get student rates on the bus. We should get deductions on our taxes somehow. I for one am very anxious, and I really mean anxious, to pay a few cents, 15 cents, 75 cents, a dollar of my social security every month provided I get back some medical assistance and also drugs.

Thank you very much.

Senator SMITH. Thank you very much.

STATEMENT OF ARCHIE KENEFICK, STATE REPRESENTATIVE, GREAT AND GENERAL COURT, LOWELL, MASS.

Mr. KENEFICK. Representative Archie Kenefick of Lowell.

Senator, I am very happy to be here and speak on behalf of the golden age senior citizens. I am a member of the State legislature.