Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-05-01
Morse Critical
Of Reluctance
ToGive Views
BY GRACE BASSETT
star star Writer

testimony 10 q Senate District
subcommittee.
Company officials will be sub
poenaed by noon Monday II
their views of pending unem-
ployment compensation bills are
not on the record, the Senator
declared.
The firms are: the Gichner
Iron Works, Inc. 1914 Twenty
fourth street, NV; the re-
Nehi Bottling Co., lilo Jeffer-
son Davis highway in Arling-
ton; the Heron Todd Steel Con-
struction Co., Inc, 1900 Jeffer-
son Davis highway in Arling-
ton; and Gilpin Wholesale
Druggists, All S. Capitol street.
All indicated that replies
would be sent. The inquiries
were mailed only last Friday.
Henry Gichner. president of
the Gichner Iron Works, said
today:
Let him subpoena II he
wants. / called up and talked
to one of his committee boys
and told him I couldn't make
it. I'm chairman of the District
Recreation Board and l didn't
think I should testify because
of the effects it might have on
recreation. l don't know what
I'm going to do about it,"
No Time to Reply
Harvey Wood, general man.
ager of the bottling firm. said
he had not had time to reply
because a letter of invitation
from the subcommittee had
been improperly addressed, and
was therefore delayed in reach
ing him. The Senate group
would be notified of his reply.
he said.
A spokesman for the Heron
Todd Steel Construction Co.
would not comment, and an Of
fetal of the druggists firm was
unavailable.
A dozen businessmen, all but
four of whom replied, were
asked by Senator Morse to
answer an earlier charge Of
Arthur Clarendon Smith, jr.,
president of the D. c. Trucking
Association, that the firms had
moved or were moving out Of
the District because of high
payments to the unemployment
fund.
Mr.. Smiths testimony before
Senator Morse's subcommittee
handling jobleSs pay bills was:
Unfortunately, in the past
we seem to be driving businesses
right out of Washington, be-
cause of our model bills, or
giveaway bills or legislation.
and certainly these businesses
that have moved out have good
reason"
2.7% Maximum Tax
District employers, under cur
rent law, pay a maximum 81
per cent tax on their payrolls
to build up the compensation
fund now totaling about $50
million. Replies received indi-
Gated, however, that site prob
lens and shifting populations
to the suburbs accounted for
business dislocations, rather
than the required jobless pay
ment.
At a subcommittee meeting
today, Senator Morse made it
clear that he would not allow
such claims as that made by
Mr.. Smith to stan dunless they
were backed up by the COM
panies. That is the reason he
insisted on compliance with the
committee order to the firms
concerned.
1.-THE chairman will never
countenance failure of wit
nesses to appear before this
committee" he said. State
ments made here that busi-
nesSes move out Of the District
because of laws passed by Con-
gress may be uncountenanced
attacks on Congress"
Before his subcommittee are
two conflicting bills to amend
the unemployment compensa-
ton law. One, drafted by the
Commissioners, would increase
maximum weekly benefits from
$50 to $40 to be paid up to %
weeks. The other, sponsored by
Senator Morse, would Ak the
same maximums at $50 for 80
weeks.
Board Of Trade Measure
Also under consideration IL
a Board Of Trade measure,
backed by Mr.. Smith, to raise
benefits to $35 a week for vari-
able durations up to 26 weeks.
Senator Morse questioned
Louis Mackall, jr., attorney Of
the District Unemployment
Compensation Board, and Fred
G. Hetzel, District director Of
the United States Employment
Service, at length today about
possible loopholes in the pro-
posed legislation.
1--WE want to protect ourselves
from idlers who refuse to take
work while exhausting their
unemployment benefits" Sem
ator Morse cautioned.
Both administrators assured
him that malingering could
hest be prevented bv we'll