Evening star., 1942-11-16
McGehee
Continued From First Page J

cumulated, but that tricky little
clause that is in here will wreck
practically all the social legislation
on the books if it is adopted. The
theory is that the strong will help
the weak.
Instead Of that, we are going to
reverse that trend if this bill is
adopted and it will be the weak
who will be called on to help the
strong. For that reason, all labor
organiza tions are opposed to the
bill, realizing and appreciating what
1t will do to the social legislation
that Is now on the books"
Representative Randolph told the
House that this legislation will be
brought to the House later. We
believe that in the District the ex-
cessive fund which now totals
b30,000,000 paid in by employers is
unwholesome.
I'VE believe that by amending the
act the payments will be cut down,
but benefits will rise progressively
and we will be getting away from
certain confusion which exists in
Maryland and Virginia in eonnec-
ton with the operation of the Dis
trict Unemployment Compensation
Act.
Only $4,000, 900 Said Needed.
I'VE have it on the word of Mr..
Mitchell, director Of the Unemploy-
ment Compensation Commission,
continued Mr.. Randolph that his
organization needs only $4,000, 900
to operate effectively and pay
benefits. In fact, he says, that will
allow him surplus to take care
of any requests for payments in a
period of five years. I regret that
the gentleman from Indiana objects
to the consideration of this bill to-
day We know that we were not to
bring up controversial matters"
Representative Dirksen pointed
out that this bill has been receiv-
ing attention of a subcommittee for
several years. We have the unprece-
dented situation where some 81 Is
paid into this fund for every dollar
paid out in the matter of benefits so
it becomes an onerous burden upon
the employers in the District.
THE objection registered" Mr..
Dirksen continued, lis with regard
to the so-called experience rating
provision carried in the bill OF the
81 Jurisdictions covered by the Fed
eral act, more than 38 have expert
ence rating provisions. 1t is thought
to be fair that this be applied to the
District of Columbia as we'll. More
than 500 employers and contractors
have been interviewed-204 of them
made responses and 200 of those
representing $1,000 employees and
s82, 100000 in annual payrolls are in
favor of the provisions which the
subcommittee incorporated in this
bill.
Provisions Outlined.
What it does is simply this" ex-
planned Mr.. Dirksen, who was a
member of the subcomittee. IF an
employer so stabilizes his employ
ment that he has in the separate
accounting fund for him substan-
tial amount of money that is worked
out under formula, his tax will
finally 60 down to one-tenth OF l
per cent. The ordinary tax today is
81 per cent, which obtains in most
of the Jurisdictions in the country.
But, it creates an incentive for an
employer to stabilize his employ
nlent and thereby get benefit in
the form of reduced taxation.
"It is absolutely nonsensical to
have $4,000, 900 in this fund and 1t
it building up every year..
"It becomes a tremendous in
centive for larger payments which
are not necessary. We have raised
the weekly benefits in this bill until
they are as high or higher than
in any other place in the country
namely, $40 a week.
I'VE have reduced the waiting
time. Heretofore 1t was two weeks
before the employe could share In
unemployment compensation. We
have reduced that to one week
We have made It possible for Sec
ondary beneflciaries, such as rela-
tives. children and wives, to be In
Guided up to 81 per person for an
aggregate Of three persons IN the