Evening star., 1935-05-19
National Program to Be Re-
ported in Senate This
Week First.
WISCONSIN JOB PLAN
is FAVORED BY KING
House Subcommittee Report on
Ellenbogen Measure Denies
Malingering Possibilities.

Passage Of social security legisla-
ton for Washington is likely to be
put of until the national program,
to be reported to the Senate this week,
becomes a law, so that the local bills
can be made to conform to the Federal
plan, it was indicated last night by
Chairman King of the Senate District
Committee.
At the same time Senator King
made known that he is personally in
clined to favor the Wisconsin plan
Of unemployment insurance, permit
ting industries to set up reserve ac-
counts to take care of their own un-
employed workers, as distinguished
from the Statewide method of pool
ing all contributors. The Utah Sen
ator stated that while he believes
there is much to be said for the State
wide pool system, he is sympathetic
toward the Wisconsin method. He
added:
This Is my personal view, but I
will be willing to go along with the
views of the people of the District,
in so far as possible, along reasonable
lines"
Meanwhile a vigorous denial of
charges that unemployment insurance
would encourage malingering was
made by the Fiscal Affairs Subcom-
mittee of the House District Commit
tee yesterday in its formal report on
the Ellenbogen unemployment COM
pensation bill.
Action Seen May 27.
The measure is now on the House
calendar and is expected to be acted
on May 81. the next District day"
The report pointed out that the
Ellenbogen bill establishes many safe
guards against misuse of unemploy-
ment benefits and cites the expert
ence of foreign countries in this con-
nection.
"One Of the fears voiced by oppo-
nents to unemployment insurance"
the report declared, 'is that 1t will
encourage malingering so that work
ers will prefer to draw benefits instead
Of working. The experience in for
! eign countries bellies this fear, how
ever; repeatedly investigations of
charges that there was a malingering
have resulted in producing little evi-
dence Of it.
1T is probable that some persons
will abuse unemployment compensa-
| ton. just as they now abuse fire or
| accident insurance. The bill, how
ever, establishes many safeguards
against misuse of unemployment
benefits. In the first place, the rate
! of benefits provided is so modest that
few persons would prefer the benefits
to the much higher amounts they
could earn through employment.
More specifically. the bill requires
each person receiving benefits to
register regularly at public employ
ment Office and to apply for and ac-
cept any suitable employment offered
him. Although during times of un-
employment, the employment ONCE
will be unable to offer jobs to all re-
cipients of benefits, it will have sum-
cient jobs at its command to offer to
those whom it suspects. are work
shy The worker viii also be in
eligible for benefits for a number Of
weeks if he quits without good cause
or is discharged for cause
Employees Not Assessed.
| The subcommittee also declared it
did not write into the bill q provision
requiring employees as well as employ
ers to contribute to the compensation
fund on the theory that the employees
contribution would constitute his loss
during the period of unemployment.
The bill,' said the report, provides
that the employers and the Govern
ment of the District of Columbia shall
! contribute. The major contribution is
placed on employers so that unemploy-
ment compensation will become one of
the costs of production. The employers
will in most cases be able to pass this
cost on in the prices of their products.
ITO begin with, the employe must
wait three weeks before he receives
any unemployment benefits, so that he
thereby contributes three weeks Of his
wages"
The funds for unemployment COM
pensation will be raised through con-
tributions of employees and the Dis
trict. Employers will be required to
contribute an amount equal to per
cent of their pay roll, and the District
will contribute an amount equal to /
per cent of the contribution Of the
employers. Contributions viii begin
January l, 1886.
Benefits for total unemployment will
be paid at the rate of 40 per cent of
former wages plus 10 per cent for a
dependent wife and S per cent for each
other dependent, except that not more
than IS per cent Of the wage, or SIS
a week will be paid. If an employe
becomes partially unemployed and
fails to earn at least 50 more than the
benefits he would receive If wholly
unemployed, he will be paid the differ
ence in partial benefits.