Evening star., 1934-11-04

since August 20, when the President
accepted the invitation Of the Inter-
national Labor Conference for the
United States to join in its work.
Mr.. Butler stated that no doubt
the outstanding result of social legis-
lation, particularly unemployment in
surance and relief, where applied in
the countries members Of the Interna-
tional Labor Organization, has been
to prevent vast amount of social un-
rest and to help maintain the
Ohio Plan Prominent.
1t is generally conceded by all sides
that the so-called Ohio plan will play
a large part in any unemployed insur-
ance scheme the President may pro-
pose to Congress.
The Wisconsin plan gets the respect
that goes with old age; but the Ohio
plan is looked upon as lusty youth
capable of going places"
Briefly. the Ohio plan works like
this:
Employers and employees pool their
resources, invested on a per cent
basis. The employers would put IN
anywhere from l to 312 per cent of
pay rolls, depending entirely upon
their classification. All employees, no
matter where or how employed, would
contribute / per cent of their weekly
pay.
In any period Of unemployment, the
unemployed would wait two weeks be-
fore receiving any benefit from the
insurance system. The maximum
benefit would be SIS week. That
would continue for a period Of 20
weeks. The man out of work would
thus receive approximately s300-to
tide him over.
Lubin illustrates Plan.
Isadore Lubin, commissioner Of labor
statistics and one of the recognized ex-
perts in the field of unemployment
insurance, shows how the Ohio plan
would work.
In 1923. the pool would have con-
tanned $4,000 900, had it been in
operation. The next year it would
have reached S115.000,00 In 1929,
the pool would have totaled $165, ,000,-
600, theoretically.
Then came the depression.
After benefits paid out. according to
the chart. the pool would have shrunk
in 1890 to s146, 100000. In 1881, by
figures of the actuaries-they were not
worked out for any later year-it would
have reached the low tide of SAC. .000,-
600. 1t means that, If in operation in
this one State, the Ohio plan would
have paid out more than $50, 600, ,000
And still there would have been a
surplus. The Lower House OF the Ohio
Legislature passed this plan. 1t is being
seriously considered by all advocates
Of unemployment insurance.
Every one recognizes that the pres
ent depression is unprecedented. and
still going strong. Advocates of un-
employment insurance admit that few
systems could hold up over such
period; but, by the same token, they
claim something must be done to-
wards sweeping away the hazards
that confront the average working
man.
Over q long period, it is claimed
that the average worker is unem-
ployed on an average of four weeks
out of every year-for one reason or
another. Even in prosperous times
that is so. The unemployed insurance
plans, therefore, are destined to take
care of this gap in the average mans
working life.
Definite Acti0n Seen.
In times Of prosperity, it is pointed
out, few persons think of unemployed
insurance In times of depression,
they think of it; but 1t is then more
difiicult to put it into effect. How
ever, most of the men and women
now interested in this social expert
ment believe that America will enter
the lists of nations having unemploy-
ment insurance and that the step will
be taken within the next year.
'It seems an enormous thing to
think Of one expert said, in dis
cussing the plan for national unem-
ployment insurance, but that is be-
cause we have been unaccustomed
to thinking on such a gigantic scale.
Still, unemployment insurance Is not
so gigantically scaled as fire insurance
or life insurance"
Naturally, the American FEEDER
alton Of Labor is interested in unem-
ployment insurance, but provision
against unemployment is nothing new
in the ranks of labor. Senator Rob-
ert F. Wagner, Democrat, of New
York, leading proponent, points out
that several Of the trades unions have
had unemployment relief plans for a
generation. One, the Deutscher
Amerikanische Typographae has had
an unemployment benefit system
since 1884. Up to last year there
were more than 48 trade union bene-
fit plans in operation.
In 1881, unemployment insurance
was the subject Of q Senate investi-
cation. Then, Senator Wagner offered
resolutions designed to encourage
State action.
One bill provided for direct Fed
eral financial support Of State un-
employment compensation schemes.
Under this measure $780, 0,000, 900 Of
Federal funds would be distributed
annually. Administration would be
under the United States Employment
Service.
Validity II Questioned.
In the majority report Of the COM
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