Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-28
CHANGESEXPECTED
IN JOB INSURANCE
BILL FOR DISTRICT
Senate Group to Bring 1t
in Line With U. S. and
State Measures.
COPELAND AND CAPPER
TO WEIGH PROPOSALS
Early Agreement Is Seen Oh
Legislation to Pension Aged
and Blind.
BY J. A. O'LEARY.

and with the general trend of State
laws, are likely to be made by spe-
cial Senate subcommittee when it
meets, probably tomorrow. to act on
all three of the local social security
bills
When the hearings ended late yes
terday, Chairman King of the Senate
District Committee said he would sug-
sest that the subcommittee. COM
posed of Senators Copeland of New
York and Capper of Kansas, hold an
executive session tomorrow, with a
view to having the bills ready to be
reported early next week.
The bills to pension the aged and
the blind are expected to be agreed
to promptly, since nearly all of the
amendments are intended merely to
meet standards laid down in the ma
tional bill as conditions to be met if
the District is to share in the Federal
aid for those pensions.
Insurance Bill Issues.
In the unemployment insurance bill
as passed by the House, however, the
Senate group has before it half
dozen major issues, on which further
testimony was taken yesterday. Among
the witnesses heard yesterday were
Rufus S. Lusk, Washington Taxpayers
Protective Association; James Med.
Shea, Building Owners and Mana
gers Association; Edwin F. Wesley,
Laundry-Dry Cleaning Owners Asso-
citation of the District; William
Father, jr., Washington Real Estate
Board, and w. NJ. Kochenderfer, Hotel
Association. These spokesman agreed,
in general, with the recommendations
made the previous day by the trade
bodies and local officials.
There was one other witness, Leifur
Magnusson of the Unemployment
Committee of the Monday Evening
Club. who supported the basic prin-
ciples in the Ellenbogen unemployment
bill as it came from the House. He
took the view it is reasonable to place
part Of the expense of unemployment
insurance on the community gen.
orally by having the District govern
ment contribute from the general tax
fund to supplement the employers
contributions. MagnusSon also re-
garded as Objectionable the proposal
of some other witnesses that an en-
ploye contribution be added to the bill.
The major questions in the House
bill raised by other organizations at
the hearings included:
Should the pay roll tax Of District
employers start of at 3 per cent the
first year, when the national measure
only contemplates graduated tax of
l per cent the first year, per cent
the second year and per cent there
after?
Should the District government be
called on to supplement the employers
tax by paying out of general revenues
an additional l per cent of the en-
ployers' pay rolls, when none of the
States has thus far voted for such
contribution from taxpayers gen.
orally? This l per cent District tax
would amount to at least Sl,250,000
a year.
Should benefit payments start in
the District after one year. when the
national bill contemplates starting
benefits after two years?
Should the District bill increase an
employers tax from the normal per
cent rate to as much as per cent
when experience shows poor record
for keeping men steadily employed.
without allowing for any reduction in
the 3 per cent tax for good record
of stabilizing employment?
Should the District plan be super
yised by a Federal board in preference
to local board?
Should the District adopt the House
plan of pooling all contributions IN
common fund. or follow the Wisconsin
plan of separate employer accounts,
under which an employer could reduce
or discontinue contributions as long
as he maintained an adequate reserve?
Lusk Voices Unfairness.
Lusk argued it would be unfair to
levy a | per cent contribution from
taxpayers generally when not more
than &c. 900 persons will benefit direct
ly from unemployment insurance. He
told the subcommittee that if a similar
contribution had been put in the New
York law it would have added $52.-
600 900 to the State tax bill. and that
in Kansas it would mean $3,5OO,OoO
tax.
Representative Ellenbogen OF Penn
sylvania said eventually the States Will
require a State contribution. because
it is sound, but Lusk reminded the SUD-
committee no State has yet done SO,
nor has he been able to find any pend
ing bill with that provision.
Wesley said the laundry owners
organization is in accord, generally.
with the changes proposed by the
Merchants and Manufacturers AsSo-
citation to the House bill. He said ne
wanted to add, however, that in the
laundry business the pay roll repre-
sents a greater percentage Of total
sales than in retail trade generally.
He asked that in the assessment
rate some distinction be made be-
tween the laundry industry, because
of heavy labor cost, and industries In
which labor is a smaller factor.
AS the Ellenbogen bill was reported
to the House originally it would have
given employers who stabilize employ
ment credit by reducing their tax to
a minimum of 112 per cent. This
was eliminated in the House. Mr.. FL
lenbogen has indicated he would agree
to some credit provision. but said yes
terday he has been advised that to
allow the original reduction of Ia
per cent would not leave the fund on
sound actuarial basis.
As the hearings ended Senator King
said that while he has not reached
conclusions on proposed amendments.
his general inclination would be TO
E1I ME, - n;efri rf