Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-17
WORKER INSURANCE
PLAN HAS SETBACK.
Roosevelt Veto Expected to
Affect Other Schemes for
Unemployment Relief.
BY ROLLIN M. CLARK.

Gov. Roosevelt's veto of a bill which
would have permitted private insurance
companies to write unemployment in
surance in New York apparently writes
"finis" to the efforts made this year in
various parts of the country to obtain
legislative sanction for this form Of pro-
lection for workers.
There has been more discussion of
unemployment insurance in the United
States during the last few months
than ever before, but the subject re-
mains In the investigational stage for
at least another year.
Other Proposals.
OF outstanding significance to busi-
ness leaders opposed to government in
business Is the intimation in Gov.
not favor unemployment insurance
written exclusively by private insurance
companies.
II believe that under the circum-
stances 1t would be inconsistent now TO
provide for one form of unemployment
insurance and thus discriminate against
other proposals which have had much
greater public consideration than was
given this measure" he said.
Among the other proposals" was the
so-called Hastings bill, which was de-
bated earnestly at legislative hearings
this Winter. That measure would have
provided for compulsory unemployment
insurance, to be written by State in
Surauce fund, private companies and
self-lnsurers. Bills to create exclusive
State unemployment insurance funds
also were defeated in New York, as we'll
as in several other States.
Had the vetoed bill become law it is
not likely that there would have been
any great influx of private companies
into the field Of unemployment insur-
ance. At least one large life insurance
company has been willing for a number
OF years to experiment with the writing
Of unemployment insurance, and 1t is
believed this concern would have availed
itself Of the privilege the bill would
have granted. The rank and file Of
insurance executes, however, are op-
posed to unemployment insurance in
principle.
They view 1t not as insurance" at
all, but simply as the building up of
reserve fund in times of prosperity
TO be drawn upon in periods of adj
versity. In their opinion this Is a
matter for each industry to handle
itself.
Favor Experiment.
Many business leaders who are fear
full of the ultimate effect of unem-
ployment insurance on the financial
stability Of their industries, but, never
theless, consider it their duty to make
some provisions for their workers when
out of jobs, would prefer to see the
experiment conducted by an insurance
company equipped to demonstrate SCI
eptifically the merits and dement's Of
the plan. With private insurance
companies out of the picture, they
realize that they themselves must set
up unemployment reserve funds II they
are to avert continued agitation for
State administered plans, the cost of
which they will have to bear.
Because of this threat, brought to
the fore by Senator Couzens' state
ment that business must act on this
problem or the Government will, a
scheduled discussion on unemployment
insurance at the meeting of the Cham
Der of Commerce of the United States
in Atlantic City at the end Of this
month assumes new importance. Listed
in the program Of the meeting under