Evening star., 1935-06-27
District Use as Laboratory
For Job Insurance Opposed
Senate Subcommittee Receives Pleas of
City Officials and Spokesman
for Local Organizations.

the House unemployment bill more
stringent on the District than is con-
templated elsewhere, Mr.. Alderman
said the Southern Railway might have
to consider moving its general head
quarters elsewhere If the bill passed
In that form.
Commissioner Hazen said the Com
missioners favor applying the en-.
ployer tax gradually, from per cent
the first year to per cent in 1898
and thereafter. He said he could see
no reason for making q different rule
in the District.
The Board Of Trade supported the
Commissioners in urging elimination
Of the ! per cent contribution from
the Districts general revenues. point
ing to the burden the city already Is
facing in raising revenue TO meet its
requirements. Mr.. CottrellS state
ment also took issue with the proposal
to raise the employer tax above per
cent in later years.
He said:
The present bill extends further
than the national law, even in the
third year, which Is It's maximum by
its provision which requires q per
cent pay roll tax from some employers,
whereas the national maximum Is only
; per cent.
When it is considered that Wash
ington Is non-industrial city and
has considerably less unemployment
fuctuation than our big industrial
centers, the need Of any greater tax
on pay rolls to take care Of this
situation, than for instance in New
York. Baltimore and Philadelphia, Is
not ut all apparent. In this regard
there Is no provision for the limitation
Of reserves in the proposed bill. The
Wisconsin bill, for instance. permits
each employer to build UP unemploy-
ment reserves and when such reserves
have reached stated sum, logically
and equitably the employer receives q
pay roll tax reduction. We feel that
1t would be manifestly unfair to re-
quire all employers in the District of
Columbia to build up reserves out of
all proportion to adequate require
mentS. This In itself would only re-
suit In unnecessarily increased COM
modify costs.
Employe Participation Urged.
I'VE urge that consideration be
given to permitting employers to re-
ceive the benefit Of reductions by set
ting up an adequate reserve and ad-
tusting the tax payment.
Further, we are Of the opinion
that In the best interests of the en-
ployes themselves in the successful
working Of the bill there should be
some employe participation. This is
not included in the bill under consid-
Grafton and we respectfully recommend
to the committee that they give this
very earnest consideration.
I'VE further call to the attention Of
the committee the fact that the House
bill provides for rs weeks Of compensa-
ton. which is considerably longer than
in other existing or proposed legisla-
tion-for instance, the New York law
provides Is weeks.
I'VE feel, therefore, that the bill
as 1t now stands, including the pro-
visions to which ] have referred, Is
entirely too drastic and these features
OF the bill entirely unnecessary for the
adequate working Of the act as con-
templated In the national BILL"
Althaus Reads Petition.
The petition Of the Merchants and
Manufacturer read by Mr.. Althaus,
discussed the following issues: That
the employer tax be established grad
ually from to per cent, as in the
national bill: that assessments on
amounts Of salary In excess Of $2,500
on individual salaries be eliminated,
as m the New Hampshire, New York,
Utah and Wisconsin laws; clarity the
rules governing employees in cases
where work 10 being done both by =
contractor and subcontractor, to avoid
| disputes; that the Wisconsin plan Of
separate employer accounts be adopted
In place Of the pool fund, 30 that an
employers contributions could cease
as long as his account has an adequate
District general revenues be cut out;
that employees be divided into two
classes, fuIl-tirne and part-time; that
the employe make some contribution,
by requiring the employer to deduct
| one-third Of the tax from the salaries
Of employees, the remaining two-thirds
to be paid by the employer.
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