Evening star., 1935-07-04
DISTRICT SECURITY
BEING STUDIED BY
KING OVER HOLIDAY
Action on Local Measure
Awaits Settlement on
National Bill.
COPELAND AND CAPPER
ALSO WEIGH CHANGES
Conferees on Federal Legislation
Adjourn Till Monday After
Three-Hour Session.
BY ]. A. O'LEARY.


While House and Senate conferees
on the national social security bill
mark time over the holiday. Chairman
King of the Senate District Commit
tee will take the opportunity to make
careful study of the District pro-
gram, especially the unemployment
insurance bill.
Final committee action on the local
bills is not likely to be taken. how
ever, until the national conferees settle
major issues in the Federal standards
Senators Copeland of New York and
Capper of Kansas. comprising the sub
committee which held hearings on the
local bills. also are studying the amend
ments proposed by the Commissioners
and local organizations to avoid hav-
ing the District program more drastic
than is being proposed for the rest Of
the country.
Adjourn Till Monday.
After three-hour session yesterday
afternoon. devoted chiefly to technical
details, the conferees on the national
bill adjourned until Monday night.
when they will tackle the important
Senate amendments.
Proposed changes in the old age and
blind pension bills for the District are
minor in character and are expected
to be approved without delay In the
unemployment insurance bill. however.
the District Commissioners and local
organizations have called attention to
the fact that Ire House measure would
impose on Washington conditions more
drastic than the Federal plan and
more severe than the States are con-
sidering
Both houses. for instance, have
voted in the national bill TO apply
the pay roll tax for unemployment
insurance gradually. at per cent the
first year. ? per cent the second year
and per cent thereafter. The House
local bill, on the other hand. applies
the ultimate rate of 3 per cent at the
start, and then provides that this can
be increased In later years to as much
as > per cent on an employer who
does not stabilize employment. but
with no reduction in the tax below
8 per cent wren an employer keeps
his men steadily at work.
Pool System for States.
One of the Seuate amendments to
the national Dill would ALLOW the
States or the District to adopt the
Wisconsin plan OF giving employers
such credit, through q reduction in
tax, when they ste sDilize employment.
and also would PERM. adoption IF the
eparate-companT reserve plan OF un-
employment Insurance Under the
House bill States could have Only the
pool system, under which all pay roll
taxes go into a common fund and
the contributions would continue re-
gardlesS of the record of the indi-
vidual employer. TIE Wisconsin sep
arate-company reserve plan also would
be sanctioned by the Senate n.ll.
Supplementing his testimony at the
recent hearing. James Med. Shea,
president of the Building Owners
and Managers ASSOCIATION. has sent
letter to Senator Copeland nging
adoption of the Wisconsin plan here.
He wrote:
"A reserve account means a sepa-
rate account in the unemployment
fund with respect to an employer or a
group Of employers. Under this plan
an individual employer or group of
employers. after they had paid into the
unemployment fund 4 certain specified
amount-say $7500-for each of their
employees might be exempt from
further contributions. This is similar
to the plan now in operation in Wis
consin and recently adopted by Utah.
1t gives an incentive for employers or
a group of employers to attempt to
regularize their employment. If they
are successful, they are rewarded by
having their contributions reduced or
stopped. as long as minimum reserve
for each employe is kept in the en-
ployer'S account"
In their letter to Senator King sew
eral days ago. the Commissioners listed
a number of other features in the
House unemployment bill that would
require the District to 60 further than
the rest of the country and they urged
Congress not to experiment on the
District.