Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-03

made by DR.. Syrup, president OF the
Federal Insurance Bureau; DR.. BraunS,
former minister Of labor, now chairman
Of the Committee of Experts, and DR..
Stegerwald.
Abuses In Four Glasses.
These members have agreed that 1t Is
impossible to place unemployment in
Surance on q plane with the other in
surance systems. such as health, old age
and invalid insurance. They declare
frankly that the results have proven the
fallacy Of all previous calculations. Not
withstanding that the size of the con-
tributions to the fund had been in
creased four times insolvency Of the
fund cannot be avoided.
The committee deals with the abuses
Of the system by those who have DELHI
erately taken advantage Of opportuni-
ties. They separate these abuses into
four classes. First, masked employment
that IL drawing the dole as unemployed
and working on the sly. Second. "feigned
employment" that is to get on the list
IS eligible to the dole by proving through
collision with some friendly employer
that they have been employed. Third,
spurious control stamps and cards.
Fourth. change Of occupations. For ex-
ample. one changes from household du-
ties to an insurable occupation, thus
gets on the dole, then goes back to do
nestle work, while still drawing the dole.
The committee has received no less
than 5000 suggestions for correcting
abuses, making reformations, ETC., and
has indicated 2an interest in three
basic changes. First, the budget Of
the unemployment insurance fund
either by raising all contributions or
reducing all benefits and restricting
benefits to the extended insurance
class" The second suggestion is the
immediate introduction of the test of
need. This implies the cancellation
Of the legal benefit claim. 1t means
q more just distribution to all who are
actually in need and exclusion from
benefits of those insured persons who
cannot qualify under a severe appli-
cation of the test Of need. 1t Is pro-
posed that all upper wage classes be
removed, thus enabling the bureau to
raise benefits to lowest wage classes.
Short Week Widely Discussed.
But the most discussed Of all the
proposals is the 40-hour week, to
which have already referred. The
sole recommendation Of this is that 1t
brings direct and practical relief to
the labor market. The BraunS Com
mittee Is discussing II as plan TO be
legally adopted and enforced. Such
employers as feel they could continue
under this shorter schedule Of hours
are protesting that 1t should not be
made compulsory. They wish to retain
final decision as to how the shorter
week is to be introduced into the
various industries without interfering
with production plans.
DR.. Stegerwald. the Labor minister,
agrees with the leading industrialists
that the best solution for unemploy-
ment and the present crisis is to re-
duce generally all production costs,
which would be followed by reduction
of prices. bringing an increased pur-
chasing power by the masses. thus pro-
viding new orders more work at the
factories, more trade at the shops. All
this system OF logical sequences is set
forth, but no suggestion is made as
to how the scheme of reduced costs Is
to be launched. so 1t remains a logical
generalization.
(CopyriEht, 1917