Evening star., 1935-01-22
CONSUMER SEEN
BEARING lob PLAN
Dr.. Witte Tells Monday Club
Cost Will Be Added to
Wage Bill.


The cost OF unemployment compen-
sation, as proposed in President Roose-
velt'S economic security measure, act
ually will be paid by the consumer,
Dr. Edwin E. Witte, executive direc-
tor of the committee on whose report
the bill is based told the Monday
Evening Club last night.
This statement was made during a
series of questions from the floor
after DR.. Witte had completed his
formal address explaining the proViS-
ions and purposes Of the administra-
ton security program.
He was asked if the unemployment
compensation feature would not in
crease unemployment by adding to
the cost of 'production.
added to Wage Bill"
Certainly not" replied the speaker.
1T simply will be added to the wage
bill just as the cost of unemployment
and group insurance has been and
eventually will be passed on to the
consumer.
The Government will take care of
cyclical unemployment by its public
works program. 1t is only right that
the cost of normal unemployment
should become part of the ordinary
cost of production"
DR.. Witte assured his audience that
the ultimate consumer tax would be
comparatively painless Wages are
figured as % per cent of the produc-
ton cost, he said, while the assess
ment for unemployment and compen-
sation is only per cent of wages
paid.
The bill introduced at the last ses-
sion Of Congress for old-age pensions
in the District would have to be
changed to eliminate the maximum
pension limit if the Capital it to re-
ceive the Federal contribution Of SIS
per pension. Dr. Witte said
He pointed out that the adminis-
tratiOn bill requires each State-and
the District would be considered
State-to provide pensions adequate
for the decent maintenance of the
recipient. This clause was inter-
preted to mean that State pension
law must be so written as to permit
latitude in individual cases.
Then the laws of almost every
State must be revised?" DR.. Witte
was asked
That was the intent" he replied
Urges Cooperation.
DR.. Witte stressed that the sue
cess of the economic security pro-
cram depends on the degree of CO.
operation between Federal, State and
local governments.
This program is not expressed in
the old terms of Federal powers and
States rights, but in the New Deal
ing security for all men. women and
children in the country" he declared.
The health insurance measure,
which was not mentioned in the re-
port of the Committee on Economic
Security or in the Presidents mes
sage to Congress. has not been aban-
doned, he told the club
1--WE are making greater progress
toward health insurance than any one
expected last Summer" he added.
The part the District will play in
making effective provisions of the
program was described by Representa-
tive Henry Ellenbogen of Pennsyl-
vania
Details Up to States.
The District and each State will
have to decide for itself the details
of its administration of old-age pen
sions and unemployment compensa-
ton, he said. He recommended that
the local unemployment bill be divid-
ed SO employers will pay two-thirds
and the District government one
third, and that the old-age pensions
be financed by a municipal income
tax.
Among the questions which must
be answered in the local unemploy-
ment compensation measure, he said,
are:
How large shall be the premium on
the insurance? How much shall be
the compensation? Shall the amounts
of compensation be varied with the
number of dependents? How long
shall it be paid-for weeks, 10 weeks
or 26 weeks? Shall the length of
premium payments govern the length
of compensation payments?
The Pennsylvania Representative
criticized the placing of the eligible
age for pensions at IS years, saying it
should not be more than so.
"Old people are just as much en-
titled to aid, when in need, as veterans
of foreign wars" he asserted.
The District Commissioners bill for
revision of the law for commitment of
the insane also was Endorsed.
Mrs. Jesse Adkins outlined briefly
the proposed bill to revise the local
juvenile delinquency law, which is
being formulated under the auspices
of the District of Columbia League of
Women Voters.
Miss Katherine Lenroot, president,
presided. Leifur MagnuSson presented