Evening Star Newspaper, September 26, 1936, Page 4

WAYS T0 HANDLE JOB FUND ARGUED Wisconsin Program Criti- cized—New Yorker Advo- cates “Merit Rating.” The far-reaching eflects of the new social security program, Row a leading topic in the national polit- ical fleld, are discussed here in the seventh of a series of articles based on a first-hand survey of the oper- ation of the system in several States, as well as of the central administration in Washington. BY BLAIR MOODY. What is the chiet purpose of unem- ployment insurance—to stimulate regularity of employment, or to take care of the workman after he loses his job? This is the principal issue facing the States which today are contem- plating a new “compensation” law to dove-tail with the Federal act so that their workers may reap the benefit of payroll taxes paid by their employers. It is inextricably linked with another issue that is as paramount in writing these laws as it is in almost any family: What's going to be done with the money? For, on how the reserve fund built by this tax is handled, may depend whether, in the future, Auto Worker Joe Smith or Bookkeeper Ben Brown, who have been laboring for years under the impression they were pro- tected by “insurance,”, actually get their money when the crisis comes. And on the same thing may depend whether employers give hearty co- operation to the law, as they do in the only State now paying benefits, ‘Wisconsin, or whether they are in- clined to buck it, as many are doing in New York. The wording of the State act may decide whether Smith and Brown are kept on the payroll during & slack period, or chopped off. Question of Emphasis. It is true that the paradoxical pur- pose of unemployment insurance is to regularize employment and to “cushion” the temporarily jobless at the same time. It cannot achieve them both completely and it will achieve them both to some extent. The big question is: Where is the emphasis to be placed? In the cradle of unemployment insurance, England, it is strictly an emergency proposition to tide the jobless over to a mew payroll. The money collected is “pooled” in one fund and benefits are paid out of that |5 out of & job collects alike, so long as there is money left in the big jackpot. In other words, under the “pooled” system, adopted in this country by New York and Utah, there is no in- centive to keep employes on the job through temporary business slumps, or to schedule production to cut violent fluctuations in the payroll. ‘There is no reward for the considerate employer, nor penalty for the hard- boiled ax-wielder. Each pays exactly the same tax. Wisconsin’s “American Plan.” Now Wisconsin, which has been miles ahead of most other States in progressive legislation, brought for- ward the so-called “American Plan,” or “employer reserve.” Its law, passed before the Federal act, pro- vides that the pay roll taxes flow into | one fund handled by the State, but that the exact amount paid in by each employer be kept as a credit to his particular company. As soon as the employer builds up his reserve to 10 per cent of his last annual pay roll, he is exempted from the further pay- ment of taxes. The primary effect of this is ob- vious. It makes it strictly to the sel- fish advantage of each employer to keep his men working regularly. For, if he lays them off, his own “reserve” will be depleted and he will have to keep on paying the tax, or resume if he has stopped. But if he fires no one, in & few years he will pay no taxes” “The philosgphy back of the Wis- consin act,” says Gov. Philip F. La Follette, “is to provide some com- pensation to an employe thrown out of work, but chiefly to make it worth while to industry to stabilize and avoid tremendous fluctuations in number of men employed. We try to take care of the workman’s eco- nomic health first, and take care of him if he gets sick second. Cites State's Experience. “Back of it is Wisconsin's 20-year experience in workman’s compensa- tion. We pioneered that field and pay the highest benefits of any State in the country. Yet the total of work- men’s compensation paid in Wisconsin is less than in any comparable State. ‘That remarkable record is due di- rectly to the fact that we handle the system to reduce accidents. “When an industry found that the cost of a severed arm or a put-out eye showed right up in the books of the corporation, it provided an immediate incentive to prevent accidents. In the same way, we believe that by making each employer pay regularly for the men they lay off themselves, there will be less lay-offs. “What we did was, say: Unemploy- ment is no longer an individual prob- lem. When a factory put$ up a help- wanted sign and brings thousands of families into a town, it's no longer private business if i decides to shut down and drive most of them on relief. It costs money and is a public con- oern. “Unemployment insurance in Wis- consin costs the well-managed con- cern little. The poorly run industry pays the bill for its own mismanage- ment.” Problem of Small Concern. All of which has elicited loud cheers from most Wisconsin employers. But how about the wage earner working for a small company? It may pay the tax regularly but cannot build up a large reserve. If it is forced to shut down the workman, having lost his job through no fault of his own, is entitled to compensation. Yet, as soon as his own company’s reserve is exhausted, he is out of luck. “The Wisconsin plan,” says Glenn A. Bowers, director of unemployment .compensation for New Yark, “does not provide adequate coverage and is likely to trend toward a pooled fund. Al- yeady they are starting a ‘kitty’ for emergency purposes. They don't call 1t pooling.” Neither Gov. Herbert H. Lehman nor Bowers is satisfied with New York’s “straight-pooling” law. Aim of New York. “What we want in New York,” Bow- ers continues, “is to keep the money in one fund so that the workman will’ have the confidence instilied by the support of a large .resource. At the same time we want to reduce the taxes of companies that provide stable em- deciding ‘whether & ‘wage earner is to get compensation o 4 The Pitcairn autogiro, which can be used as readily on the road as flown in the air. As seen here, the wings can be folded back and the autogiro is all ready to be driven home and put in the garage. should be how long he has worked and how much he has earned, not how large his company is. ‘ “Under a system of merit-rating of companies it is possible to write all the advantages of the Wisconsin plan into a State law without the disad- vantage of unstable and scattered re- | serves. Most States are adopting some such scheme. It is becoming e new ‘American plan.’” 1Copyright. 1936, by the North American Newspaper Alliance, Inc.) Marriage Licenses. artel. 27, and Lorstta J. O'Don 7. both of Lynn, Mass.; Rev. adelphia, and e raT | Upshur_st.. Con- Carl will, 4n. i d My s1it B:o-d Branch rd; Judse K. E. Matline) Kenneth N. Kea. 31, Richmond. and ko . Bowman, 30. Matoaca, Va.; J. C. Ball. Roy D Preston, 32, Nichols ave. se. and Laurs l. Tifto . Ga} 1515 20th st and | ,"1812 Vernon | Irving st. and 143 Wt Rev. and Fay E. Cook. s.w.; Rev. Alberi vis. 211227 Siaples st. nee., a Lucy F\u:n 17, 1626 Neal st n'e} Rev. A Foo !rnenv. Hm 43784 10th st_and Annie Bai 34, 503 S st; Rev. Albert n. corhses. 85 and Pearl Bur- botn ‘of Trenton, N. J.; 640 A st. se. and | 2 Maryland ave. | d Adele Beciett, Prospect ave; Rev. =‘\n 34 Mlh of Milwaukee, Wis.; Rev. Rio Ri d PlItL ’5 and ral A. Rubin. ) llllulzfi": Rev. Louis Quenvlll wnlter V %mwn 31, and CIM! llnku. both of 2016 Sth st. Harrison, Georse B Knapp and Maricn L. P powier. Charlotte “Thomas. 26, Cassatt. Rev. E. C. Smil Births. Reported. James and Irma DeVore, boy. James and Doris_Hissey, bov( Ward and Alice Pigman. b James and Margaret Harold. ‘boy. ¥. | Edward and Jacaueiin Sallenger. girl, Pranklin and Julia Ragland. girl. Earl and Plorence Freeburser. girl. Cornelius and Mariorie Murphy. girl. . gir] Mariin and Etnel Brav. gifl Porrester, | Bernard snd P. Elleanor Rickerton. irl. Howard and Eulalia Garrett. James and Mary McCarthy. Clarence and lIrene Willis Mi nd Mabel Canna nd Thelma W a | James and Bfaceie Robinse Dantel and Nellie Mercer. Nelson and C: Deaths Reported. ‘Kint ‘."uua Monroe st. D!Ol’l!ln'll Hospital. 1g2% Hisvbetn Hozpital Providence Hosp —Wide World Photo. FORD LECTURES «| Bible Series to Start To- morrow Night. John Ford, Bible lecturer, will begin another series of lectures at the Bible Auditorium, Fifth and F streets, to- morrow at 6:45 and 8:30 pm. He will speak on “Where and What Is Heaven?" Sunday mornings he broadcasts over | Radio Station WOL at 10:15 o'clock. Builds Model of Bounty. Clyde Horner, Houston, Tex, worked 500 hours to build an exact miniature of the Bounty, famous | English man-of-war. The tiny model has 121 workable pulleys. BASEBAI.I. FANS! While ettending the WORLD SERIES GAMES meke this populer and contrally locoted Club Hotel your headquarters. o Enjoy the utmest 1n comfort " » Convenient 1o both Besebell Parks © Fioe Swimming Poel *Gym teom Rooms * Restourants -8, SPECIAL WEEKLY RATES George A Torkel, Mgr 145 EAST 23 ST New Yorx Ci1v WOODWARD & LOTHROP 10™11™F Arp G Presentihg the Quaker Lace Curtains Model Rooms, Showing Modern Curtain Decora- tive Trends—Monday, Tuesday, Seven Miniature V. Wedne STREETS Fashion News in sday Plan to attend thus important event. See this ‘exceptional display of the new Quaker styles for Fall oud this remark- able panorama of smart window treat- ments in miniature rooms, Here ot Wood- ward & Lothrop " you ‘will - find these Quaker designs and these interesting, in- formative miniature model rooms, ¢ Con- sult Miss Zagat about your dvqpnry ond curtain problems. - Drarznms, Szvarr FLo0R, Prone DIsmicy §300 WOODWARD & LOTHROP 10™{1™F AND G STREETS Proxe DIsmice §300 MASTER BEDROOM (above) . . . in the unstudied sim- plicity of this room lies its charm. A room to inspire rest and relaxation. |llustrated: Twin Beds, each Highboy with web feet Virginia Chippendale Chest_.._ Mirror Desk on frame__ THIS CHARMING ENTRANCE (left) invites you to step into Trutype House. Here you will find an outstanding display of the furniture of our forefathers, skillfully reproduced and adapted for the home today in Jrutype Reproductions, charmingly displayed. Announcing . . . the Fall Opening of Statton Trutype House Furnished with Authentic Reproductions of Fine Early American Maple Furniture Newly decorated and completely refurnished—Trutype House again opens its doors for your inspection—to bring you new, inexpensive and utterly livable suggestions for the furnishing of your home in maple. Trutype House demonstrates the complete adaptability of Statton Trutype authentic reproductions to modern living for every room in the home. You will want to see it—for Statton is recognized across the land as a truly worthy medium of reproduction of the fine early American pieces—justly famous for their quaint, livable, mellow loveliness. Each Trutype piece is faithfully copied from its selected original and accompanied with an historical note on the original. Peg construc- tion, worn edges, fine solid woods and transparent mellow amber- toned finish serve to capture the spirit of the early American crafts- men. Come to see Trutype House. You will want to live with it for its grace, its warmth, iits character of line, finish and construction. And you will be deeply impressed by the modest price tag each piece carries. DINING ROOM. Whether for breakfast or more formal dinner . . . it has the essential quality of cheer and taste that makes meals more inviting. BOY'S ROOM. Masculine, of course, and rugged enough to withstand the onslaughts of the active younger generation. A double-deck bed is featured. GIRL'S ROOM . . . with all the dainty femininity that is so essential in the life of the growing girl. A room which she may call her own. FIREPLACE GROUP in the Living Room. A room that is colorful and cozy, a place to be lived in. Years will not mar its beauty. Shown in the sketch at left; Plymauth Chest _ Occasional Table oo e Wall Mirror 'JPonprrons, SixTe PLOOR,