Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-26
INSURANCE CHIEFS
OPPOSE NEW LAWS
Leaders Believe Present
Methods of Unemployment
Relief Should Be Tested.
BY RoLLIN NJ. CLARK.

II the views Of industrial and insur-
ance executives who appeared last week
before the special Senate committee in
vestigating unemployment insurance
prevail, there will be no legislation on
this subject at the next session Of Con-
gress. Their attitude has been unan-
imously against Government-operate
unemployment insurance schemes. as
well as against legislation compelling
industry at this time to set up reserve
funds of its own 10 provide for uncm-
ployment contingencies.
on the other hand they favor giving
business an opportunity to work out its
own salvation in this field by expert
menting for at least a few years with
various forms OF voluntary unemploy-
ment benefit plans,
Employment Is Real Problem.
These witnesses were Gerard Swope,
president of the General Electric Co. I;
former Gov. Walter j. Kohler OF
Wisconsin, president of the Kohler Co.;
M. B Folsom, assistant treasurer of the
Eastman Kodak Co. and James D..
Craig, actuary of the Metropolitan Life
Insurance Co All agreed that unem-
ployment insurance is but palliative,
the major problem being to find some
means of stabilizing employment. Mr..
Kohler believes that insurance should
be resorted to as a last measure When
all other efforts have failed while Mr..
Swope and Mr.. Folsom took the view
that unemployment benefits were essen
tial in any general plan.
While there was general agreement
among the witnesses as TO the inadvis-
ability Of legislation, certain differ
ences of opinion came out Mr.. Fol-
som expressed the belief that unem-
ployment benefit plans would slim
ulate industry TO stabilize employment
in order to keep the insurance costs
down. Mr. Kohler, on the other hand,
said many plants now operating might
shut down if their employees would be
provided even during limited period
of time with benefit payments.
Mr.. Swope said the General Elec-
trio unemployment reserve plan, now
operating "a an emergency basis with
contributions from the company and
every Official and employe, was work
ing out very satisfactory" and begin
ming November / some $4,000 workers
will be guaranteed half-time employ
ment for the next six months. In
Rochester. N. Y, there is general sat
isfaction with plan now being oper-
ated by 19 industrial concerns, Mr..
Folsom said, although benefit pay
ments do not begin until 1888. Yet
Mr.. Craig, looking at the subject from
purely an insurance standpoint, de-
scribed all existing plans as trial and
error" methods of determining a
sound method to be recommended In
the future for universal adoption.
Hearing to Resume.
The other side OF the picture is ex-
pected to be presented this week when
witnesses invited by Senator Wagner
OF New York will appear. The New
Yorker has indicated by his ques-
tioning of the witnesses that he be-
lieves unemployment insurance, even
when extended beyond sound ac-
tuarial limits, is superior to charitable
relief for those out of work. He seems
to favor a compulsory plan, perhaps
in the nature of law requiring en-
ployers to set up their own reserve
funds, with contributions by employ
es as an option.
Copyright, 1917