Evening star., 1936-11-23
NEW YORK WORK
INSURANCE LAW
UPHELD, 4 TO 4
Supreme Court Ruling Auto.
matte, Due to Illness of
Justice Stone.
OTHER STATUTES MAY
DEPEND ON HIS VIEW
Action First on State Unemploy.
ment Acts in Connection With
Social Security.
BY JOHN II. CLINE.

Constitutionality of the New York
State unemployment insurance law
was affirmed by an evenly divided Su-
preme Court today
This unusual ruling resulted from
the inability of Associate Justice Stone
to participate In the consideration Of
the case because of illness. The re-
naming justices were divided 4 to 4,
which automatically afirms the ruling
Of the courts in New York, where the
legislation was declared constitutional.
This is the first action of the SUI
preme Court on a State unemploy.
nent insurance law, passed in con-
nection with the Federal social
security act 1t may leave the fate
Of similar State statutes hinging on
the attitude Of Associate Justice Stone
If he should return to the bench in
time to consider them.
Announced Orally by Hughes.
Today's ruling was announced orally
from the bench by Chief Justice
Hughes, and there was no immediate
indication as to which of the justices
had voted for the New York law.
which taxes employers to pay benefits
to those out of work.
Both the New York Supreme Court
and the Circuit Court of Appeals,
after lengthy hearings. found the
legislation did not contravene the
provisions of the fourteenth amend
ment to the Constitution.
The attacks on the validity Of the
statute were instituted by W. II. H.
Chamberlain, Inc, and Associated
Industries. Inc. both of New York.
The New York statute requires an
nual contributions to be paid by an.
ployers Of four or more persons, based
on the pay roll. The tax is per cent
in 1886, 2 per cent in 1887 and 3 per
cent thereafter.
These contributions are payable into
central unemployment insurance
fund administered by the Industrial
commissioner OF the State, and ex.
pended ultimately In the form Of
weekly benefits to q class Of unem-
ployed employees"
Upheld In Entirety.
The Court of Appeals upheld the
statute in its entirety, finding that 1t
did not violate any Of the provisions
Of the Fourteenth Amendment. The
complaining companies had contended
the amendment was violated in that
the statute takes from employers large
sums Of money annually to be paid
out to a certain class Of unemployed
employees"
While the legislation was supple
mentary to some extent to the Federal
Social Security Act, the latter statute
was not involved in the litigation de-
cided today.
During the recent political cam
paign. the various State unemploy-
ment insurance laws were bitterly at
tackled as discriminating against en-
ployers The legislation. however, Is
considered one of the keystones Of the
New Deals program Of social legisla-
ton. Unemployment insurance Is de-
signed primarily to protect workers
who may lose their jobs before reach
ing the age of IS. when they will
become eligible for old age benefits.
22 Opinions Expected.
During the next two weeks the Jus
tices will prepare opinions in % cases
argued during the last fortnight 1t
is possible that all, including five New
Deal cases. will be decided on De-
cember 7.
The New Deal disputes affect P. W.
A. loans for publicly owned hydro
electric projects, a presidential EN-
barge on shipment Of arms for the
recent Chaco war, the Ashurst-Sum-
ners act to label prison-made goods, q
so per cent silver profit tax and q
question Of procedure in obtaining
final decision on constitutionality Of
the public utility holding company act