Evening star., 1940-05-11
Hope for Change
In Job|ess Act
For D. {. Fades
Subcommittee Snuq
On Benefit Limit
Riddles Chances
BY DON s.WARREN.

BY DON s.WARREN.
Only . faint glimmer OF hope re-
manned today for action at this ses-
sion Of Congress for liberalization
Of the District Unemployment Com
pensation Act, for the benefit Of
either capital or labor, due to IN
adamant stand taken by business
and labor spokesmen on one major
issue, but both sides nursed what
hope was left, despite the impasse
reached yesterday.
As yesterday passed without q
favorable report being made by the
House District Committee, the op-
portunity for action by the House
Monday - District day was lost,
leaving the prospect that District
employers would continue to pay q
high pay roll tax, building up an in
creasing and frozen" benefit re-
serve fund, and deferring action on
granting increased benefits to the
eligible jobless above present levels
which are admittedly too low.
Preferred Status . Possibility.
What hope for action remained
was based on:
l. That, providing the House Dis
trict Committee could later reach
an agreement on bill, there would
be granted a special rule giving
preferred status to the bill, so that
1t might be brought up in the House
at sometime other than a District
day. After Monday the next Dis
trict day, If there is one, would be
May ~.
2. That. due to the new war de-
velopments in Europe, Congress
might not adjourn early In June, as
recently believed, but merely recess
for the political conventions and re-
sumo the session later, giving other
opportunities for action on the
measure. While President Roosevelt
said yesterday at his press confer
ence that he had given no thought
to the possibility of asking Congress
to remain in session, some members
Of Congress said there was senti-
ment for continuation of the session.
Split on Payment Limitation.
The fact that no agreement could
be reached on the supposedly last re-
manning point at issue-the amount
Of the ultimate limitation on the
yearly benefit payments-while tax
paying employers as well as labor
spokesmen alike hoped for q solu-
taon, appeared strange. to observers.
But that Is where the nine men,
bers Of the House District Commit
tee, attending yesterdays two-hour
closed session, split. Chairman Nc
Getee Of the Judiciary Subcom-
mittee, who presided In the absence
Of Representative Randolph. Demo-
crat, Of West Virginia, declared:
'"The bill is killed for this session"
# no corrective amendments are
adopted at this session District en-
ployers will continue to pay = tax
rate of 3 per cent, the highest in
the country, this applied to the en-
tire salary Of all covered employees,
although the States pay 81. this
rate being limited to but the first
5000 Of the salary of any covered
employe, and due to the present
level Of benefit payments the bene-
At reserve fund will continue to
mount. Recently 1t had passed
a., SOC, 900 and will exceed SO, ,000,-
600 by the end Of this year. Whereas
pay roll taxes amounting to some
q, ,700, 900 were collected in the Dis
trict in the past calendar year.
benefit payments in the same year
totaled less than $780, 900.
According to some observers, there
would be the question also as to
whether the Federal Social Security
Administration would continue to
pay the administrative expenses of
the local board If it did not comply
with the intent Of legislation
adopted at the past session of
Congress requiring that all local ad-
ministrative boards be placed under
the merit" system. This would
have meant that the personnel Of
the District D. U. G. Board be re-
quired to take non-competitive,
non-assembled civil service exami-
nations and achieve q mere passing
grade. No such arrangement yet
has been made, although the sup
posed deadline was last January l.
Defers Change in Experience Rating.
II the present law is not amended
there is supposed to 60 into effect
next January an employer ex-
perience rating system, under which
the pay roll taxes would range from
one-haf Of per cent to 4 per cent.
depending on the stability of en-
ployment shown by various en-
ployers. This system business in
terests had hoped to perfect, but
their plans have been deferred for
action until the next session of
Congress.
According to reports given follow
ing the executive session Of yester-
day, members Of the House District
Committee were willing to agree on
the following:
The granting OF an increase In the
maximum weekly benefit payments
from SIS to SIG; establishment Of .
minimum weekly benefit payment Of
$6; extension Of the basic duration
Of benefit payments from l6 to Is
weeks; the continuance Of an un-
employment compensation board Of
i've members instead Of adding two
members as suggested by the G. I. O.
spokesmen; the continuance of the
present law provisions as to. pay
ments Of benefits to persons involved
In labor disputes; the granting Of
extra benefit payments for depend