Evening star., 1940-05-12
D. {. Jobs Tax
Defeat Laid
~ .
To Labor
McGehee Declares
Leaders Opposed !.
Liberalization

Blame for the apparent death ut
this session Of Congress Of legislA.
ton to lberalize the local unemploy-
ment compensation law was placed
yesterday on the "doorsteps" Of the
leaders Of labor and the unemployed
by Representative McGehee, Dem
ocrat, Of Mississippi, chairman Of
the Judiciary Subcommittee Of the
House District Committee.
Mr.. McGehee, who sponsored the
legislation, issued a statement ir
which he declared:
"One has only to visualize what
was agreed to and it is at once ap-
parent that the greatest benefit
under the proposed act will be to
the unemployed and if this bill is de-
feated, labor and the unemployed
can lay it at the doorsteps of some
of their leaders"
Representative McGehee predicted
Friday after three unsuccessful at
tempts on the part of the full. Dis
trict Committee to agree on q form
the legislation should take for revis-
ing the Unemployment Compensa-
ton Act his bill was dead for the
session"
Makes Formal Statement.
His formal statement in amplifca-
ton of that prediction follows:
Since statements have been
given in the press, pro and con, rel
ative to the District unemployment
compensation bill pending before
the District Committee, I think it
only fair that the public and labor
be correctly informed as to the exact
situation and the present status OF
this legislation.
"A majority of the Judiciary Sub
committee of the District Committee
tentatively agreed on the provisions
of H. r. 9619. It was brought before
the District Committee and the OPP
position to the provisions of this
bill asked for further hberalizations.
A majority of the committee In q
spirit of compromise agreed to in
corporate in the bill the following
provisions:
II. The partial benefits provi-
sions were iberalized to the extent
that they are more liberal than IN
any other State.
"2. The waiting period was re-
duced to two weeks, which is IN line
with the more liberal States.
"3. The maximum weeks of bene-
fit for total employment were ex-
tended to 10. only six other States
having 18 or more weeks and
three of which employees contribute.
a. Offered to substitute 40 per
cent in the place of one-third or
33ls per cent provision, controlling
the maximum amount to be paid
during the benefit year to any
claimant The highest limiting
fraction in any other State being
33h per cent.
Strike Provisions Retained.
IS. Agreed that the strike pro-
visions in the present act be re-
tanned in this bill.
"6. Agreed that compensation
to dependents be retained at a fiat
rate of $500 to spouse and $100 to
each child. No State has pro-
vision making allowances to de-
pendents.
~. To amend the present act to
include as dependents disabled chill
dren over 16 years of age.
IS. Agreed to adopt table conf
putting weekly benefits rates based
on one-twentieth of earnings during
high quarter. Only eight other
States being as liberal as this.
g. Agreed to minimum weekly
benefit of $500 (the present act
has no minimum) and a maximum
of SIS per week. which is higher
than 10 per cent of other States.
Il would like to also point out
that these hberahzations provide a
worker with Is weeks of benefit tor
less employment than is required
for the worker to receive 1878
weeks under the present act.
THE only relief provided in this
bill for the employer is to make
it comply with the Federal basic
act, that is, reduce contributions to
81 and limit tax on salaries to
$1,000. The so-called relief gwen
to the employer is now enjoyed ty
the employers in a great majority
Of the States.
"The opposition apparently agreed
to all offered liberalization amend
ments with the exception of No.
4, they asking for fiat duration
of benefit, with no limiting en-
ployment requirement.. No otner
States provide benefits for as long
q period without employment or
eligibility requirements substan-
TALLY more restrictive than those
agreed to by the committee"