The Washington times., 1935-08-14
CAPITAL SAVED
S1,500,000
BY HAzEN
Drastic Experiment
Planned For Test
In Washinqton

pose of all pending District leglS-
lation before Congress adjournS,
the Senate District Committee to-
day approved what its critics char
acterize as the most drastic social
security experiment contemplated
anywhere in the United States.
On advice of experts from Presi-
dent RooSevelt's social security
committee, Senator william H.
King CD, Utah, chairman of the
Senate District Committee, had
the bill as passed by the House
amended to cut out all language
after the enacting clause and in
Sert an entirely new text.
Benefits Reduced
In q desperate fight at the
hearing, Corporation Counsel E.
Barrett Prettyman and Commits
sioner Melvin C. Hazen prevailed
on the committee to amend the
bill further to- eliminate any con-
tribution from the District gov
eminent other than that required
to cover its own employees who do
not come uder the retirement act.
BY this move, the District offic-
ials saved the District approx
mately $1,500,000.
The commissioners also success
fully fought to put the admins
tration of the insurance fund in
the hands of a local board instead
of having it handled by the ma
tional board as provided in both
the House bill and the bill drawn
by the Senate committee.
To make up for the elimination
of the Districts contribution the
District officials further persuaded
the committee to cut the payment
of benefits from 26 weeks to Is
weeks, to conform to the time
limit in the national bill.
On the theory that Washing
tons commercial interests are
better off than other communi-
ties, the committee in it's bill
completely let down its bars as
to the number of employees on
which an employer must pay
payroll tax.
How Tax Will Work
The national bill provided that
employers of eight or more per-
sons should pay the tax. In
the local bill it is provided that
employers Of one or more per-
sons shall come under the pro-
visions of the bill.
Exceptions are domestic service
In private homes, casual labor
not in the course of the EN-.
ployers' trade or business SER
vice performed by son, daughter,
or spouse or service performed
by a child under the age of 81
in employ of father or mother;
service in employ of the U. S,
Government or of an instrumen.
tally of the U. S.: service per-
formed for a Senator, Represen.
tatve. delegate or resident COM
missioner and service performed
in the employ of the District as
school teacher or as a member
OF police or fire department or
any coming under the retirement
In liberalization Of the House
bill the Senate measure provides
that the tax shall graduate from
] per cent to per cent for
the first three years.
It shall be 3 per cent for three
years and then fluctuate between
and half per cent and 4
per cent depending on the Stabili-
zation Of employment of the en-
ployer.
The bill also changes the House
bill to delay the benefits starting
two years after the measure goes
into effect instead of on year.
Quick Approval
The bill was presentd fresh to
the committee today and ap-
proved shortly thereafter with the
statement of Senator Willard
T'ydings that the thing to do was
to get the law on the statute
books and it could be amended
later as all of the social security
bills and probably would be
amended by subsequent sessions
OF Congress and the State legis-
lature.
The committee also agreed to
report the blind and old.age pen
sion bills already passed on by
the committee with amendments
to make them conform to the ma
tional legislation.