Evening star., 1934-03-29
URGE INSURANCE
FOR UNEMPLOYED
Many Testify in Support of
Wagner.LeWiS Job.
less Bill.
By the Associated Press.

BY the Associated Press.
At an unusual hearing. extending
far into last night, William Green,
president of the American Federation
of Labor; Msgr. John A. Ryan of
Catholic University, Father Francis j.
Haas of the N. R. A. Labor Advisory
Board and other witnesses urged en-
actment of the Wagner-Lewis unem-
ployment insurance bill indorsed by
President Roosevelt.
They testified before House Ways
and Means Subcommittee, headed by
Representative Lewis of Maryland,
who is co-author of the bill with Sem
Htor Wagner, Democrat, of New York.
Tax Would Be Levied.
The measure would levy per
cent excise tax on the pay rolls of
employers of 10 or more persons
against which they would be credited
with what they paid out through the
State unemployment insurance Sys-
TENS it is hoped will be set up.
"To meet obligations to the work
ers attached to their pay rolls" Green
said, Industries should accumulate
reserves to meet their payments to
their employees at such times as wages
are not provided from current in
come. Not only does this principle
rest upon justice to wage earners but
1t is essential for the maintenance
of economic business structure OF
which any company is a part.
"The business level depends upon
those who buy. Prices of commod-
fties, services. real estate, etc, depend
upon available purchasing power. If
business can be assured of purchasing
demands free from those irregularities
due to unemployment which deprives
large groups of income retail business
and at least production of consumers
goods can avoid sudden drops in ac-
tivity, which in turn throw many
others out of jobs"
Pointing out that business has
created reserves for depreciation.
dividends on capital investments and
other obligations, Green said the same
reasoning should apply to the in
vestment which the wage earners
have in industry.
Declared Essential.
Father Haas, who has been active
In formulation of N R. A. codes from
the beginning, told the committee the
proposed unemployment insurance was
"a necessary preparation for whatever
course the Government sees fit to
follow after the expiration of N R. A.
In June, 1885"
General approval of the bill was
given by Lincoln Filene. Boston de-
partment store head, who said we
have got to recognize that the burden
of unemployment must fall upon So
ciety, meaning everybody"
He estimated the proposed tax would
add about l per cent to the cost of
sales of the employers, and explained
that 'if there is no other way. then
society has to assume responsibility
for that amount which is not thrown
away as it goes back into purchasing
power"
"The main thing see in this bill :"
he said, lis that it makes the en-
ployers alive to the fact that they
have to have sterilization of employ
ment in industry. Business men
would have to study their problems in
such way as to help overcome the
cost of seasonal unemployment.
Equalization of Profits.
IT might even say this sort of
thing might be perhaps the entering
wedge toward a movement for the
equalization of profits with the
employees"
A second representative Of industry
proper to support the bill-favored in
principle by President Gerard Swope
of the General Electric Co. but not
at this time-was Ralph E. Flanders
of Springfield, VT. He urged, however.
that care be taken in the control of
funds set aside so that the accumu-
lation during prosperous years not be
invested in such a way as to add
to boom and then be liquidated in
an emergency.
Saying that only to minor degree
was the unemployment problem one
within control of the individual en-
ployer, Flanders suggested the pro-
gram go even further with three
way plan of taking care of transient
and other general unemployment
through this means, the great mass
of surplus workers through planned
government-supervised work and the
rest through permanent public
works administration-the whole CO.
ordinated under a Labor Department
unemployment service.