Evening star., 1940-01-17
McGehee Offers
Bill 10 Cut D. T..
job|ess-Aid Tax
Proposal Intended
As Substitute for
Pending One

A new plan, designed to save en-
ployers in Washington thousands
of dollars a year through a reduc-
ton in pay roll contributions to the
unemployment compensation fund
and at the same time increase bene-
fits to the jobless, was placed before
the House District Committee to-
day.
The plan is embodied in a bill
introduced late yesterday by Repre-
sentative McGehee, Democrat, of
Mississippi, a member of the Dis
trict Committee who last year sought
to reduce the employers pay roll
tax to keep the unemployment ben
eft fund from going beyond its
needed scope. Mr.. McGehee's new
bill is intended as substitute for
the one introduced at the last reg
ular session and which is now pend
ing.
The latest proposal of Mr.. Nc
Gehee Is to cut the employers con-
tribution from to 81 per cent Of
workers wage, raise the maximum
weekly benefit payments from SIS
to $40 and increase the maximum
period of benefits from 16 to 20
weeks.
The present unexpended balance
in the unemployment benefit fund
is slightly in excess OF s16OOO,0O0,
and, according to District officials,
1t will mount steadily unless the
law is changed to conform to the
McGehee recommendations.
In Line With Federal Policy.
John A. Marshall, executive officer
OF the Unemployment Compensa-
ton Board, told the Commissioners
about week ago that il Congress
| approved the new maximum benefits
similar to those proposed in Mr..
McGehee's latest bill, they would be
higher than in most States. He said
the reduction in the employers tax
Is in line with the revised Federal
security policy.
The bill provides several other
changes in the existing unemploy-
ment compensation law. It would,
for instance, remove the requirement
that an unemployed person to be
eligible for benefits must show he
had worked 13 weeks during the 80
weeks preceding his application. In
its place the board would require the
applicant to show he had earned
$3.50 or more in the preceding So
weeks.
In addition, the board would be re-
quired to make study of the opera
ton Of the law Ito determine the ad-
visibility of establishing q rating
system which would equitably rate
unemployment risk and fix the rate
of contribution to the fund for each
employer or class Of employer" and
report to Congress not later than
January l, 1941. Such an investiga-
ton is intended to encourage stabi-
lization and expansion of employ
ment.
Other d. c. Bills Offered.
Two other District bills were in
troduced late yesterday. One. spon-
sored by Representative Shafer, Re.
publican, of Michigan, a member of
the District Committee, is intended
primarily to prevent the practice
Of price cutting" among retail
liquor dealers. The other, bearing
the name of Representative RAN
dolph, Democrat, of West Virginia,
the committee chairman, who is now
convalescing from an acute attack
OF the grippe in Naval Hospital,
would protect garage and livery sta
BILE owners from losses from non-
payment of bills.
Mr.. Shafer's bill would, In effect,
give the Alcoholic Beverage Control
Board control over retail liquor
prices and at the same time enable
it to force the removal of "glaring"
signs advertising certain alcoholic
beverages. The one sponsored by
Representative Randolph which, in
cidentally, is one of the 26 included
In the legislative program of the
Commissioners, would allow garage
and livery stable proprietors to hold
a car or horse, as the case might
be, until the respective owners paid