Evening star., 1939-08-16
Revision Of District
Social Security Law
Will Be Proposed
Efforts Will Continue
To Permit Lowering Of
Unemployment Tax
By HAROLD b. ROGERS.

TlOpUSdlS w lCfloC CllCll-
sively the District of Columbia Un-
employment Insurance Act will be
worked out for presentation to the
next session of Congress in January
. This became known today, as Dis
trict officials and bankers made pre-
liminary surveys OF the effect of the
new amendments to the Social Sc
curity Act which became law after
Congress adjourned The amend
ments extend the Social Security Act
to all banks, and building and loan
Associations.
How the combination of the
amended Federal Act, and the Dis
trict law will affect banks and loan
associations here has become one of
the vital topics of consideration in
the financial district.
One of the principal objectiveS of
District officials will be to continue
their efforts to permit lowering of
the 3 per cent unemployment tax
now levied by law on the pay rolls
of employees. This tax so far has
built up a fund of more than S13,-
737,O0O while the District is collect
ing annually from three to four
times as much from employers as is
needed to meet disbursements under
the act. Legislative efforts to get the
District separated from the Federal
Social Security authority were un-
successful in the last session.
Face 3 Per Cent Levy.
The national banks, which have
not been paying the social security
taxes to either the municipality or
the Federal Government, will be
faced with a current local levy of
3 per cent on all incomes-unless
the local act is changed.
Certain financial institutions here
have been paying the local unem-
ployment tax, which has risen
through the years from l per cent
and 2 per cent to the present 3
per cent level.
National banks coming into the
jurisdiction of social security will
have their employees covered begin
ming next January l, and the tax
on these banks will not be graduated
l, 2 and 3 per cent as others which
have been paying in the past. The
newcomers to the field will pay the
same current tax applicable to all
The District of Columbia act pro-
vides for operation of the unem-
ployment system here on a pool
plan, whereby taxation from all en-
ployers goes into one fund, out OF
which benefits are paid. Other sys-
TENS authorized by the Federal
Social Security Act include the re
serve" and guarantee" funds.
Pool Plan Backed.
Local officials, it is understood,
hope to continue the pool plan, with
a view to giving the Unemployment
Compensation Board the right to
fix the tax rate yearly, the same
rate to apply equally to all en-
ployers in the District, under the
pool plan.
One of the provisions of the new
Federal Social Security amend
ments, however, which will be sub
ject to close scrutiny by local en-
ployers reads as follows:
mo reduced rate of contributions
to a pooled fund or to a partially
pooled account is permitted to per-
son COR group of persons having
individuals in his Cor thelro employ
except on the basis of his COR their
experience with. respect to unem-
ployment or other factors bearing
direct relation to unemployment
risk during not less than three con-
secutive years Immediately preceding
the computation date"
The unemployment tax on en-
ployers which is 3 per cent to the
Federal Government and per cent
to the District, with the former al
lowing a credit of 80 per cent for
payments made locally, has nothing
to do with the l per cent Federal tax
for ald-age assistance. paid by both
the employer and the employe.
Register for Conclave.
The list of District bankers plan
ming to attend the annual conven-
ton of the American Bankers AS
soclation at Seattle, Wash, next
month now includes Robert v. Flem-
ing, president of Riggs National
Bank; George o. Vass, vice presi-
dent and cashier of Riggs: Sidney
Taliaferro, vice president and trust
officer Of Riggs; F.. G. Addison, jr.,
president of Security Savings and
Commercial Bank: W. J. Waller.
vice president and cashier of Hamil-
ton National Bank; L. P. McLachlen,
president of McLachlen Banking
Corp; c. F. Burton, president of
City Bank; John A. Reilly, president
OF Second National Bank: James c.
Dulln, Jr., treasurer of the Ameri-
can Security and Trust Co., and J.
Frank White, president of the Ma
tlonal Bank of Washington. Others
also have the trip under considera-
ton. it is understood.
Joins Insurance Staff.
Robert c. Merritt, well-known
local life underwater, has ioined
the agency staff of the Washing
ton branch office of the Connecti-
cut General Life
Insurance Co., 1f1fsa1eaxnas.
according to Ar
m I'd Durant u 4 \
local manager
for the company.
For the past five
years Mr.. Mer- 49,