Evening star., 1939-02-08
Board Asks 50qb Cut
In Employer S Share
0fCompensation Fund
Congress Urged to
Reduce Rote From ;
To ~ Per Cent

A reduction of so per cent in the
contribution of employers to the
District Unemployment Compensa-
ton Fund was recommended to
Congress today in the annual re-
port of the Unemployment Compen-
sation Board.
The proposal, suggesting the pres
ent rate of 3 per cent be reduced to
IL per cent, was forwarded to Con-
gress with a letter of transmittal
from Commissioner Melvin c.
HaZen.
The report for 1888, prepared by
Director John A. Marshall and his
staff, declared the board last year
collected $6.476,44323 and paid out
benefits of $1,673,20850. AS of De-
cember 81, 1888, the boards balance
in the Unemployment Trust Fund
in the United States Treasury was
$40 1866. .449 so.
"As a result Of the past years
operation and careful study, the
board is of the opinion that reten-
ton of the present rate of contribu-
ton will add $4,000,000 year to its
present surplus" the report set forth.
To Ask Changes Soon.
IF the contribution rate is low
cred, factual study should be made
of the situation which will confront
employers of eight or more individ-
uals. If IL per cent tax rate is
applied, these employers are sub
m TIM ToIoro1 ovnico fov oVd
would be subject to taxes in the
amount of BIS per cent. whereas
employers of less than eight individ-
uals would be subject to tax of only
~ per cent. These two types of
employers might be in direct compe-
tition, and. as a result, the larger
employer might well claim direct
discrimination"
The report said the board would
recommend soon several amend
ments to the District Unemploy-
ment Compensation Act, changes
which will not materially affect the
substance of the present law, but are
directed toward simplification of its
administrative and enforcement
provisions
The main purpose of the amend
ments, it said. is to ALLOW greater
leeway in the reporting system and
to make some provisions for refunds
and adjustments of contributions
enormously paid.
Difficulties Detailed.
"Other important recommended
changes would revise the
method of computing the full time
weekly wage and charging benefits
against the claimant-employe's
earnings in the ratio of wages
earned, rather than previous weeks
of unemployment.
AT the present time the board Is
required to compute an individuals
claim up to the time he has become
unemployed. This means in most
cases that at the time of filing of the
claim the claimants complete work
record is not on file with the board
since it may not be legally due
until a later date.
AAC PACoCAlU lIlCUllOO ID SO
cumbersome that the accurate hand
ling of second and third claims is
virtually impossible with the present
staff, within the time contemplated
by unemployment compensation
systems"
The board also said its space at
40 Indiana avenue NV. "is entirely
inadequate" with several divisions
occupying space elsewhere. The
building, 1t said, lis extremely old,
is in bad condition and presents
dangerous fire hazards"
Last years contributions of So
476,44323 were received from ap-
proximately $1,000 employers cover
ing approximately 175,000 employees.
During the same period 1882
claimants applied for compensation
under the act. Administrative ex-
penses totaled $33O,61887.
Members of the board are Com
missioners Hazen and David Nc
Coach, jr.; D. j. Callahan, repre-
senting employers, and John Locher,
representing employees. Mr.. Locher
is president of the Central Labor
Union.