The Waterbury Democrat., 1932-06-17

New Haven, June 1.-The fol- lowing Is an abstract of remarks by Noel Sargent, economist of the National Asso ciation of Manufac- turers before the joint meeting of the Employers Association of New Haven County and the Southern Connecticut Branch of-the National Metal Trades Association last night at Savin Rock.
 "The Interstate Commission on Unemployment Insurance, which included representative named by the governor of Connecticut, has proposed that the establishment of unemployment reserve funds by in- dustrial companies be made con- pulsory by legislative enactment The plan differs from European proposals by having the contribu- tions of each firm kept entirely separate from the reserve funds of other companies but since different legislatures can change the amount of contribution which em pfoyers must make to the fund and the amount and duration of benefits received by those unemployed. this plan permits political control of the company reserve funds.
 "The plan is politically imprac- tical since 1t provides that workers ostensibly covered under its pro- visions may in practice receive vary ing sums as benefits. This provision Is politically unwise and unfair ito workers. It may compel employees during a period of heavy unem- ployment to receive lower or shorter benefits than other employ es in the same industry have re- ceived during more normal times, thus giving the lowest amount of
 benefit at the time of most neces- gity. It provides discrimination as to benefits which will be received by unemployment workers of dif- ferent industries. The inevitable re- suit will be demands upon legisla- tors to provide for equalization of amount and duration of benefits. With such demands made 1t would not be long before state legislatures would act to equalize both dura- ton and amount of benefits among all unemployed workers and the equalization would be towards the highest rate being paid or provid- ed. in the law, with resultant large increases in the total burden upon employers. Consequently, the ini- tial cost of per cent of the pay
 roll would soon have to he increas- ed.
 "Ths Interstate plan is also
 faulty in not providing for contri- buttons by workers. It may be
 pointed out that all foreign plans except that of Russia provide for contributions by prospective iecip- ients. Without such contributions the pressure upon legislators to i'm
 pose uneconomic regulations which
 increase costs is enormously tn-
 creased. The adoption of such plans by legislative compulsion tends, moreover, to interfere with desir- able friendly cooperative relation ships between management and in- dustry and 1t may be incidentally pointed out that they also decrease the influence of trade unions since many of their members will no longer consider 1t necessary to be- long to unions when they can rely upon legislation. Unemployment private industry may, on, the other | of industry by promoting better re- OVbWCSA hA&h&b and workers. The growth of such plans should be encouraged by fed . eral and state legislation exempt l ing from taxation funds used to
 establish or maintain such reserves. | The growth of reserve plans in pri- vate industry would also be en- l couraged by legislative action per- | hitting insurance companies to group Unemployment Insurance on
 m experimental basis, just as they now write group life insurance.
 Until states have given substan-
 tia1 and continued encouragement
 to private industry toward the es.
 tablishment of voluntary unem. l pioyment reserve plans. 1t Is un- fair and in the light of foreign ex.
 perience. may be socially and eco I nomicaliy disasrous, to establish
 any system of compulsory unem.
 ployment benefits.
 l We realize that the existence .I of continued economic distress ere.
 ates q necessity for It's relief and that when private means have been
 exhaus public agencies must step
 in. But such relief should be pro. Il vided 50 far as possible by stimu-
 lating employment by private in. dustry instead of the distribution
 of monetary or, other kinds of re.
 lief directly to private individuals
 Where however, such direct reliei
 becomes necessary, 1t should bt
 base dstrictly on individual reliei
 according to the needs of the indi.
 viduai case e determined by care. H BARLOW BROS co. H i CONTRACTORS
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