Evening star., 1940-05-03
Job|ess Benefit
Bill Faces
Fight Monday
McGehee Forecasts
Approval; A. F. Of l.,
c. !. o. Oppose Terms
BY DON S. WARREN.


set today for battle Monday on the
House District Committee, or later
on the House floor, over the sup
posedly non-controversial compro-
mise plan of the District Unemploy-
ment Compensation Act.
In the face Of newly developed
opposition, Chairman McGehee of
the Judiciary Subcommittee, which
had trimmed previously contro-
verted items from the measure, de-
clared he would continue to seek
prompt action on the latest ver-
sion of the measure and predicted
approval by the House.
Condemnation of the compromise
bill was voiced by John Locher,
president of the Central Labor Un-
ion, A. F. of L. affiliate, and
member of the District Unemploy-
ment Compensation Board. He said
the central body would make
formal statement on the issues after
it had had chance to analyze pro-
visions of the measure. This will
be done. he said, by special COM
mittee headed by Arthur L. Schoen-
thai, who is member of the District
Minimum Wage Board.
Sidney R. Katz, secretary-treas-
urer of the Maryland and District
Industrial Union Council of the
c. I. O., last night sharply attacked
the compromise and its sponsors
and issued two sets of tables which
he said proved that the latest plan
was less liberal than the present
law or an earlier bill sponsored by
Mr.. McGehee.
Eberharter Plans Amendments.
This followed yesterdays an
nouncement by Representative Eber-
harter, Democrat, of Pennsylvania
that he would offer suitable amend
ments at the proper time" to the
compromise plan, which he said
would do practically nothing" in
liberalization of benefits for the
unemployed while granting employ
ers tax savings estimated at about
100000.
Mr.. Katz reported that the c. l. O.
would oppose the compromise bill
and support the bill offered by Mr..
Eberharter.
The compromise plan, formally
adopted Wednesday by the Judiciary
Subcommittee, after many weeks of
consideration of various proposals,
would grant to District employers a
reduction in the pay roll tax rate
hi ir1, iv,l
the country, to 2.7 per cent. the
standard State rate, and limit the
tax to the first $4,000 of the salary
of any covered employe, which is
the Federal policy. The District now
has benefit reserve fund of more
than $l7,500,000.
The compromise plan also con-
tanned provisions which would es-
tablish $6 minimum benefit pay
ment, the present law having NO
minimum; would increase from SIS
to SIC week the maximum benefit
payment; would fix the duration of
benefit payments at 18 weeks, in
stead of the present basic limit of
16 weeks (Which can be extended
to as much as 26 weeks if the worker
has been employed sufficient num-
ber of years in the pasD: and would
change the eligibility rule from the
present requirement that the ap-
plicant must have worked in IS
weeks out of the past So to one that
he must have earned minimum of
S125 in the past year.
Mr.. Katz, whose group protested
proposed elimination of extra benefit
allotments for persons having de-
pendents, declared last night the
compromise bill was nothing short |
of a mockery and emasculation
of unemployment compensation"
Draws Comparison.
The tables Mr.. Katz prepared
gave comparisons between provi-
sions of present law, the compro-
mise plan, the bill Mr.. McGehee re-
Gently sponsored as based on sug.
gestions from the District Unem-
ployment Compensation Board and
of the Eberharter bill. His calcu-
lations, Mr.. Katz said, showed that
married person having three chill
dren, who has had steady work at
SIS a week. would get, under the
present law, $253 on an annual
basis in benefit payments; $144
year under the compromise plan,
$50 under the earlier McGehee
bill, as against $3.50 under the pro-
posed Eberharter plan.
A single person, who has earned
SIS week, he said, would receive
$156 under present law, $144 under
the compromise plan, $180 under
the earlier McGehee bill and $180
under the Eberharter plan. A single
person, who has earned $35 a week.
would receive 1854 under present
law, S288 under the compromise
plan and $400 under either the
earlier McGehee bill or the Eber-
harter bill.
The c. I. o. council spokesmen
also protested that whereas the pres
ent law and the Eberharter bill
would permit benefit payments to
persons who are locked out" by
their employers, the compromise
plan and the earlier McGehee bill
would not. Mr.. Katz added that
only the Eberharter bill would per-
NIT payments to employees who go on
strike, this to be effective after
four weeks of strike duration.
McGehee Defends Provision.
Meanwhile, Mr.. McGehee de-
Tended a provision which provides
that benefit recipient may receive
IN a year benefit payments equal
to ID times his weekly benefit allow
ance, or one-third of the wages
earned by him in the base period,
whichever is the lesser. Whereas
Mr.. Katz termed this clause a |
"joker," Mr.. McGehee declared it
was a provision similar to those in
the laws Of the States.
Mr.. McGehee agreed it would
mean that person earning $125
Ia Wi -