Chief of Police be increased by more than 5 longevity increases."

SEC. 2. Section 102 of said act is amended by adding thereto the following new subsection:

"(f) In initially adjusting salaries in accordance with the provisions of this section, any officer or member promoted from a lower grade to a higher grade prior to July 1, 1953, shall receive credit for such part of continuous service in both grades for longevity purposes as is necessary to establish his basic salary, including longevity pay, at least equal to the basic salary he would have received under the provisions of this section in the lower grade had such promotion not been made. Service for future longevity increases of any officer or member whose salary is adjusted under authority of this subsection shall begin as of the date such adjustment became effective."

SEC. 3. Subsection (d) of section 202 of said act, as amended, is amended to read as follows:

"(d) The minimum basic salaries contained in subsection (a) of section 201 of this act in the grade or rank of Fire Chief shall not be increased by more than 4 longevity increases, nor shall the minimum basic salaries of grades or ranks below that of Fire Chief be increased by more than 5 longevity increases."

SEC. 4. Section 202 of said act is amended by adding thereto the following new subsection:

"(f) In initially adjusting salaries in accordance with the provisions of this section, any officer or member promoted from a lower grade to a higher grade prior to July 1, 1953, shall receive credit for such part of continuous service in both grades for longevity purposes as is necessary to establish his basic salary, including longevity pay, at least equal to the basic salary he would have received under the provisions of this section in the lower grade had such promotion not been made. Service for future longevity increases of any officer or member whose salary is adjusted under authority of this subsection shall begin as of the date such adjustment became effective."

SEC. 5. The provisions of this amending. act shall become effective as of July 1, 1953.

AMENDMENT OF DISTRICT OF COLUMBIA CREDIT UNIONS ACT The Senate proceeded to consider the bill (S. 3683) to amend the District of Columbia Credit Unions Act, which had been reported from the Committee on the District of Columbia with amendments, on page 1, beginning with line 3, to strike out "That section 4 of the act entitled 'An act to provide for the incorporation of credit unions within the District of Columbia,' approved June 23, 1932, as amended, is further", and insert "That section 4 of the District of Columbia Credit Unions Act is hereby"; in line 8, after the word "and", to strike out "by"; after line 9, to strike out:

SEC. 2. That section 6 of the said act is hereby amended by striking out the entire section and inserting in lieu thereof the following:

And insert:

SEC. 2. Section 6 of such act is hereby amended to read as follows.

On page 2, line 3, after the word "unions", to strike out "provided for by" and insert "established under"; in line 9, after the word "union", to strike out "chartered" and insert "established"; in line 15, after the word "section", to strike out "1755” and insert "5"; in line

22, after the word "Each", to to strike out "District chartered credit union" and insert "credit union established under this act"; in line 3, after the word "any", to strike out "persons" and insert "person"; in line 5, after the word "to", to strike out "District chartered credit unions" and insert "credit unions established under this act"; in line 7, after the word "each", to strike out "District chartered credit union" and and insert "credit union established under this act"; in line 11, after the word "section", to strike out "1755" and insert "5"; in line 14, after the word "any", to strike out "such credit union" and insert "credit union established under this act"; in line 20, after the word "Provided", to strike out "however"; on page 4, line 4, after "Sec. 3", to strike out "That section 12 of the said act, as amended, is" and insert "Section 12 of such act is hereby"; in line 5, after the word "out", to strike out "in (b)", and in line 6, after the word "and", to strike out "by", so as to make the bill read:

Be it enacted, etc., That section 4 of the District of Columbia Credit Unions Act is hereby amended by striking out "Comptroller of the Currency" and inserting in lieu thereof "Director of the Bureau of Federal Credit Unions."

SEC. 2. Section 6 of such act is hereby amended to read as follows:

"SEC. 6. (a) Credit unions established under this act shall be under the supervision of the Director of the Bureau of Federal Credit Unions. They shall make such financial reports to him (at least annually) as he may require.

"(b) Not later than January 31 of each calendar year each credit union established under this act shall pay to the Bureau of Federal Credit Unions, for the preceding calendar year, a supervision fee in accordance with the scale prescribed for Federal credit unions. All such fees shall be deposited with the Treasurer of the United States for the account of the Bureau in the special fund created by section 5 of the Federal Credit Unions Act and may be expended by the Director for such administrative and other expenses incurred in carrying out the provisions hereof as he may determine to be proper, the purpose of such fees being to defray, as far as practical, the administrative and supervisory costs of the Bureau incident to the execution of its functions under this act.

"(c) Each credit union established under this act shall be subject to examination by, and for this purpose shall make its books and records accessible to, any person designated by the Director. The scale of examination fees prescribed for Federal credit unions shall also be applicable to credit unions established under this act which fees shall be assessed against and paid by each credit union established under this act promptly after the completion of such examination. Examination fees collected under the provisions of this section shall be deposited to the credit of the special fund created by section 5 of the Federal Credit Unions

Act, and shall be available for the purposes specified in subsection (a) of this section.

"(d) It shall be unlawful for any credit union established under this act to transact business in the District of Columbia without procuring a license from the District of Columbia; and all such credit unions shall pay a license tax of $5 per annum to the District of Columbia. No license shall be granted for a longer period than 1 year: Provided, That the Commissioners of the District of Columbia may suspend or revoke a license upon proof of the bankruptcy or insolvency of any such credit union or upon conviction

of a violation of any provision of this act or any law or regulation of the District of Columbia or of the United States."

SEC. 3. Section 12 of such act is hereby amended by striking out "Comptroller of the Currency" and inserting in lieu thereof "Director of the Bureau of Federal Credit Unions."

The amendments were agreed to.

The bill was ordered to be engrossed for a third reading, read the third time, and passed.

AMENDMENT OF DISTRICT OF COLUMBIA TEACHERS' SALARY ACT OF 1947, AS AMENDED

The Senate proceeded to consider the bill (S. 2655) to amend the District of Columbia Teachers' Salary Act of 1947, as amended, which had been reported from the Committee on the District of Columbia with amendments, on page 1, at the beginning of line 5, to strike out "edition, Supp. I)" and insert "edition)", and on page 2, line 1, after the numerals "1951", to strike out "edition Supp. I)" and insert "edition)", so as to make the bill read:

Be it enacted, etc., That section 3 of the District of Columbia Teachers' Salary Act of 1947, as amended (sec. 31-661, D. C. Code, 1951 edition), is amended by striking therefrom the proviso and inserting in lieu thereof the following: "Provided, That for other than temporary employees the first 2 years of service within a salary class shall be probationary."

SEC. 2. Subsection (a) of section 5 of such act, as amended (sec. 31-663, D. C. Code, 1951 edition), is amended to read as follows:

"SEC. 5. (a) Each teacher, school officer, or other employee appointed or promoted on probationary tenure after June 30, 1952, and who is not entitled to annual increases of salary in accordance with section 7 of this act, as amended, shall receive his first annual increase in salary on the beginning date of his second year of probationary service in the position to which he has been appointed or promoted and he shall receive the second annual increase in salary on the date when his appointment or promotion is made permanent. Subsequent annual increases in salary within the same salary class shall be made in accordance with section 7 of this act, as amended."

SEC. 3. This act shall become effective as of July 1, 1952.

The amendments were agreed to. The bill was ordered to be engrossed for a third reading, read the third time, and passed.

AMENDMENT OF DISTRICT OF

COLUMBIA TRAFFIC ACT

The Senate proceeded to consider the bill (S. 1585) to amend the District of Columbia Traffic Act, 1925, as amended, which had been reported from the Committee on the District of Columbia with

amendments, on page 2, line 1, after the word "application", to strike out "made under oath"; in line 21, after the word "application", to strike out "made under oath"; on page 6, line 20, after the word "Resident", to strike out "Commissioners, and" and insert "Commissioners;"; on page 7, line 2, after the word "appointed", to insert a semicolon and "and officers of the executive branch of the Government of the United States who are not domiciled within the District of

Columbia, whose appointment to the office held by them was by the President of the United States, subject to confirmation by the Senate, and whose tenure of office is at the pleasure of the President"; in line 21, after the word "of", to insert "any of"; on page 8, line 5, after the word "is", to strike out "personal" and insert "bodily"; in line 8, after the word "involving", to strike out "personal” and insert "bodily"; in line 11, after the word "is", to strike out "used" and insert "involved"; in line 12, after "(e)", to strike out "Upon conviction of any offense set forth in subsection (d) of this section, the clerk of the court shall forthwith" and insert "Whenever judgment of conviction of any offense set forth in subsection (d) has become final, the clerk of the court in which the judgment was entered", and in line 19, after the word "section.", to insert "A Judgment of conviction shall be deemed to have become final for the purposes of this subsection

"(1) if no appeal is taken from the judgment, upon the expiration of the time within which an appeal could have been taken, or

"(2) if an appeal is taken from the judgment, the date upon which the judgment, having been sustained, can no longer be appealed from or reviewed on a writ of certiorari", so as to make the bill read:

Be it enacted, etc., That paragraph (1) of subsection (a) of section 7 of the District of Columbia Traffic Act, 1925 (48 Stat. 1121), as amended (sec. 40-301 (a) (1), D. C. Code, 1951 edition), is amended (a) by striking from the first sentence thereof so much as reads "Upon application made under oath and the payment of the fee hereinafter prescribed, the Commissioners or their designated agent shall issue a motor vehicle operator's permit to any individual" and inserting in lieu thereof "The Commissioners or their designated agent shall, upon application, the payment of a fee of $3, and compliance with such regulations as the Commissioners or their designated agent may prescribe, issue a motor vehicle operator's permit valid for a period not in excess of 3 years, to any individual 16 years of age or over"; (b) by inserting in the second sentence thereof after “give a practical demonstration" the following ", or produce evidence acceptable to the Commissioners or their designated agent,"; (c) by striking from the second sentence thereof so much as reads "and in the presence of such individuals as may be authorized to conduct the demonstration"; (d) by striking therefrom the fourth, fifth, and sixth sentences; and (e) by striking from the last sentence thereof the colon and proviso, and inserting in lieu thereof "and not for compensation.”

SEC. 2. Paragraph (2) of subsection (a) of section 7 of such act (43 Stat. 1121), as amended (sec. 40-301 (a) (2), D. C. Code, 1951 edition), is amended to read as follows:

"(2) The Commissioners or their designated agent may, upon application and the payment of a fee of $1, issue a learner's permit, valid for a period of 60 days, to any applicant for a motor vehicle operator's permit, 16 years of age or over, who has successfully passed all parts of the examination other than the driving demonstration test. Such permit shall entitle the permittee, while having such permit in his immediate possession, to operate a passenger motor vehicle, used solely for purposes of pleasure and not for compensation, when accompanied by the holder of a valid District motor vehicle operator's permit who is occupying a seat beside such permittee."

"(6) Notwithstanding the provisions of this subsection, the Commissioners or their designated agent may, upon compliance with such regulations as they or their designated agent may prescribe, extend for a period not in excess of 6 years the validity of the opera

tor's permit of any person who is a resident of the District and who is on active duty outside the District in the Armed Forces or

the merchant marine of the United States and who was at the time of leaving the District the holder of a valid operator's permit."

SEC. 4. Subsection (b) of section 7 of such act (43 Stat. 1122), as amended (sec. 40301 (b), D. C. Code, 1951 edition), is amended to read:

"(b) Each operator's permit shall state the name and address of the permittee, together with such other matter as the Commissioners or their designated agent may by regulation prescribe, and shall bear the signature of the permittee."

SEC. 5. Subsection (d) of section 7 of such act (43 Stat. 1122), as amended (sec. 40301 (d), D. C. Code, 1951 edition), is repealed, and subsections (e) and (f) of section 7 of such act, as amended, are redesignated subsections (d) and (e), respectively.

SEC. 6. Subsection (a) of section 8 of such act (43 Stat. 1123), as amended (sec. 40303) (a), D. C. Code, 1951 edition), is amended to read as follows:

"(a) The owner or operator of any motor vehicle who is not a legal resident of the District, and who has complied with the laws of any State, Territory, or possession of the United States, or of a foreign country or political subdivision thereof, in respect of the registration of motor vehicles and the licensing of operators thereof, shall, subject to the provisions of this section, be exempt from compliance with section 7 and with any provision of law or regulation requiring the registration of motor vehicles or the display of identification tags in the District. Such exemption shall cover the period immediately following the entrance of such owner or operator into the District equal to the period for which the Commissioners or their designated agent have previously found that a similar privilege is extended to legal residents of the District by such State, Territory, or possession of the United States, or foreign country or political subdivision thereof. The Commissioners or their designated agent shall from time to time ascertain such privileges and cause their or his findings to be promulgated. When the laws of any State, Territory, or possession of the United States or of a foreign country or of a political subdivision thereof contain a reciprocity provision similar to that herein above set forth, or the privilege extended to a legal resident of the District is for the remaining portion of the current District of Columbia registration year, then the owner of any motor vehicle who is a legal resident of such State, Territory, or possession of the United States, or of a foreign country or political subdivision thereof shall comply with the provisions of section 7 of this act and with every other provision of law or regulation requiring the registration of motor vehicles and the display of identification tags in the District at the time of the expiration of the current motor vehicle registration issued to such owner by such State, Territory, or possession of the United States or a foreign country or political subdivision thereof, unless the Commissioners or their designated agent shall have entered into a reciprocal agreement or arrangement with the duly authorized representatives of such State, Territory, or posession of the United States or a foreign country or political subdivision thereof, further to limit or to extend the period of time during which the validity of the motor

The

vehicle registration and identification tags of such State, Territory, or posession of the United States or foreign country or political subdivision thereof shall be recognized by the District. The Commissioners or their designated agent are hereby authorized and empowered to enter into reciprocal agreements and arrangements as aforesaid. following persons shall, with respect to the registration of motor vehicles and the licensing of operators thereof, if they have complied with the laws of the State, Territory, or possession from which they have been elected or appointed, or of which they are legal residents, be exempt during their respective terms of office or during the period of their employment as administrative employees from compliance with section 7 and with any other provision of law or regulation requiring the registration of motor vehicles and the display of identification tags in the District: Senators and Representatives in Congress; Delegates to Congress; Resident Commissioners; administrative employees of Senators, Representatives, Delegates, and Resident Commissioners who are legal residents of the State, Territory, or possession from which said Senators, Representatives, Delegates, and Resident Commissioners have been elected or appointed; and officers of the executive branch of the Government of the United States who are not domiciled within the District of Columbia, whose appointment to the office held by them was by the President of the United States, subject to confirmation Senate, by the and whose tenure of office is at the pleasure of the President."

SEC. 7. Subsection (b) of section 10 of such act (43 Stat. 1124), as amended (sec. 40-609 (b), D. C. Code, 1951 edition), is amended by striking the third sentence thereof.

SEC. 8. Section 10 of such act (43 Stat. 1124), as amended (sec. 40-609, D. C. Code, 1951 edition), is amended by adding two new subsections "(d)" and "(e)", to read as follows:

"(d) The Commissioners or their designated agent shall revoke the operator's permit or the privilege to drive a motor vehicle in the District of Columbia, or revoke both such permit and privilege, of any person who is convicted in the District of any of the following offenses:

"(1) Operating a motor vehicle while under the influence of any intoxicating liquor or narcotic drug.

"(2) Any homicide committed by means of a motor vehicle.

"(3) Leaving the scene of an accident in which the motor vehicle driven by him was involved and in which there is bodily injury, without giving assistance or making known his identity and address and the identity and address of the owner of said vehicle.

"(4) Reckless driving involving bodily injury.

"(5) Any felony in the commission of which a motor vehicle is involved.

"(e) Whenever a judgment of conviction of any offense set forth in subsection (d) has become final, the clerk of the court in which the judgment was entered shall certify such conviction to the Commissioners or their designated agent, who shall thereupon take the action required by subsection (d) of this section. A judgment of conviction shall be deemed to have become final for the purposes of this subsection

"(1) if no appeal is taken from the judgment, upon the expiration of the time within which an appeal could have been taken, or

"(2) if an appeal is taken from the judgment, the date upon which the judgment, having been sustained, can no longer be appealed from or reviewed on a writ of certiorari."

SEC. 9. This act shall become effective 30

days after its enactment.

The amendments were agreed to.

The bill was ordered to be engrossed for a third reading, read the third time, and passed.

ALLEY DWELLINGS IN THE DISTRICT OF COLUMBIA

The bill (S. 3506) to repeal the act approved September 25, 1914, and to amend the act approved June 12, 1934, relating to alley dwellings in the District of Columbia, was announced as next in order.

The PRESIDING OFFICER. Is there objection to the present consideration of the bill?

Mr. SMATHERS. Mr. President, I should like to ask the chairman of the committee whether or not the proposed legislation has been approved by the present District of Columbia Commissioners.

Mr. CASE. It was.

Mr. SMATHERS. And the committee, I presume, has a letter to that effect? Mr. CASE. The clerk advises me that is correct.

The PRESIDING OFFICER. Is there objection to the present consideration of the bill?

There being no objection, the bill (S. 3506) was considered, ordered to be engrossed for a third reading, read the third time, and passed, as follows:

Be it enacted, etc., That the act entitled "An act to provide, in the interest of public health, comfort, morals, and safety, for the discontinuance of the use as dwellings of buildings situated in the alleys in the District of Columbia," approved September 25, 1914 (38 Stat. 716), as amended (secs. 5–101, 102, D. C. Code, 1951 edition), is hereby repealed.

SEC. 2. Subsections (b), (c), and (d) of section 4 of the act entitled "An act to provide for the discontinuance of the use as dwellings of buildings situated in alleys in the District of Columbia, and for the replatting and development of squares containing inhabited alleys, in the interest of public health, comfort, morals, safety, and welfare, and for other purposes," approved June 12, 1934 (48 Stat. 932), as amended (sec. 5-106, D. C. Code, 1951 edition), are hereby repealed.

SEC. 3. This act shall take effect 60 days after approval or July 1, 1955, whichever is

earlier.

DISTRICT OF COLUMBIA UNEMPLOYMENT COMPENSATION ACT The Senate proceeded to consider the bill (S. 3482) to amend the District' of Columbia Unemployment Compensation Act, which had been reported by the Committee on the District of Columbia with amendments.

Mr. CASE. Mr. President, I ask that the committee amendments be considered and agreed to en bloc.

The PRESIDING OFFICER. Is there objection? The Chair hears none, and the amendments are agreed to en bloc. The amendments agreed to en bloc are as follows:

On page 6, at the beginning of line 21, to strike out "(2)"; on page 9, line 9, after "Section 3", to strike out "(a)" and insert "(c)"; on page 17, line 3, after the word "individual", to strike out "qualified" and insert "qualifies"; in line 7, after the word "amount", to insert "or 38 percent of the wages for employment paid to such individual by employers during his base period, whichever is the lesser"; and on page 26, after line 2, to strike out:

"(b) All initial and continued claims for benefits for weeks occurring within a benefit year which commences prior to the effective date shall be computed and paid in accordance with the old law. All initial and continued claims for benefits for weeks occurring within a benefit year which commences on or after the effective date shall be computed and paid in accordance with the new law."

And in lieu thereof to insert the following:

"(b) The benefit rights of any individual having a benefit year current on or after the effective date shall be redetermined and benefits for calendar weeks ending subsequent to the effective date shall be paid in accordance with the new law: Provided, That no claimant shall have his benefits reduced or denied by redetermination resulting from the application of this provision. All initial and continued claims for benefits for weeks occurring within a benefit year which commences on or after the effective date shall be computed and paid in accordance with the new law."

The amendments were agreed to. Mr. MORSE. Mr. President, I wish to make a brief statement about the bill and to offer some amendments on pages 18 and 19. The bill was considered by the committee, and I think a grand job was done by the staff in working out a bill which, in my opinion, represents, the the labor groups and the employer groups best compromise of differences between the labor groups and the employer groups which could be worked out under all the circumstances.

It should be said that probably the representatives of each group-as was pointed out to us yesterday in committee, when we unanimously approved the bill-will probably say there are features of the bill which they wish were different, and they would not want to be urged to make public pronouncements in favor of the bill in its entirety. But, Mr. President, here we have the legislative process working very effectively, and we are greatly indebted, not only to the members of the subcommittee, but also to the very excellent staff of the Committee on the District of Columbia, for the excellent job they have done.

Since the taking of the action on yesterday, further consideration has been given to the bill by some of us; and, as a result, we now suggest certain amendments to the bill. I think they will be approved by the chairman of the committee on the basis of the further inquiry that has been made by the very able clerk of the committee. So I propose the following amendments:

words "not less than four nor more than On page 18, in line 19, to strike out the nine" and insert in lieu thereof "six."

On the same page, beginning in line 22 to strike out:

In addition such individual's total benefit amount shall be reduced in a sum equal to the number of weeks of disqualification multiplied by the weekly benefit amount.

Mr. CASE. Mr. President, will the Senator from Oregon yield?

Mr. MORSE. I yield.

Mr. CASE. As I understand, the language the Senator from Oregon proposes to strike out is not contained in the present law. In that respect, if that language is stricken from the bill, we shall return to the status quo of the socalled penalty provision.

Mr. MORSE. That is correct.

Mr. CASE. Mr. President, under the circumstances, I see no objection to accepting the amendment. If there is any strong argument in favor of inserting the language of that part of the bill, as it now stands, the insertion can be made when the bill reaches the other body.

With respect to the first amendment proposed by the Senator from Oregon, namely, to strike out "not less than four nor more than nine" and insert "six”, obviously the suggestion of the insertion of "six" is in the nature of a compromise. I see no objection to it, and I am willing to accept the amendment.

Mr. MORSE. Mr. President, the same changes will have to be made on page 19, in lines 6 and 7, and also in lines 9, 10, 11, and 12; and on the same page, in line 22 and line 25; and on page 20, in lines 1, 2, and 3.

The PRESIDING OFFICER. Without objection, the amendments of the Senator from Oregon will be considered en bloc.

The question is on agreeing to the amendments offered by the Senator from Oregon.

The amendments were agreed to.

Mr. MORSE. Mr. President, I should like to say a further word. I wish to make perfectly clear, for reference purposes, so that objectors in either employer or labor groups will know the reason for the action we have taken, that I am satisfied all parties in interest will be willing to admit that this measure constitutes a great forward step in improving this particular law in the District of Columbia, which law, all the testimony before our committee showed, in its present form is the worst in the country. Certainly in the case of the District of Columbia we need to come somewhat nearer to the program in the various States. So I am very glad to see this compromise measure passed.

Mr. CASE. Mr. President, in supplementing what the Senator from Oregon has said, let me state that I suppose the distinction of having about the least desirable law of this sort is shared by the District of Columbia with approximately 2 States, or at least I have been told there were 2 States in which such a situation prevails. Nevertheless, the District of Columbia was being pointed out as being exceedingly behind the times in its legislation in this field.

The question of improving the existing legislation was discussed by me and by the Senator from Maryland [Mr. BEALL] with the Undersecretary of Labor, Mr. Larson. We agreed to try to get something done in this field, so that the District of Columbia might be, as it properly should, a leader or a model for the Nation.

I am glad to see this measure passed by the Senate at this time.

The PRESIDING OFFICER. If there be no further amendments to be proposed, the question is on the engrossment and third reading of the bill.

The bill (S. 3482) was ordered to be engrossed for a third reading, read the third time, and passed, as follows:

Be it enacted, etc., That the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 946), as

amended (title 46, ch. 3, D. C. Code, 1951 edition), is amended as follows:

Section 1 (b) (2) (B) is amended by adding at the end thereof the following:

"Service shall be deemed to be localized within a State if

"(i) the service is performed entirely within such State; or

"(ii) the service is performed both within and without such State, but the service performed without such State is incidental to the individual's service within the State, for example, is temporary or transitory in nature or consists of isolated transactions."

Section 1 (b) (4) is amended to read as follows:

"(4) Notwithstanding any other provisions of this subsection, the term employment shall also include all service performed after the effective date of this amendment by an officer or member of the crew of an American vessel on or in connection with such vessel, provided that the operating office, from which the operations of such vessel operating on navigable waters within or within and without the United States are ordinarily and regularly supervised, managed, directed, and controlled, is within the district."

Section 1 (b) (5) is amended by adding at the end thereof the following subsections:

"(Q) service performed on or in connection with a vessel not an American vessel by an individual if he performed service on and in connection with such vessel when outside the United States;

"(R) service performed by an individual in (or as an officer or member of the crew of a vessel while it is engaged in) the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life (including service performed by any such individual as an ordinary incident to any such activity), except (A) service performed in connection with the catching or taking of salmon or halibut, for commercial purposes, and (B) service performed on or in connection with a vessel of more than 10 net tons (determined in the

manner provided for determining the register

tonnage of merchant vessels under the laws of the United States)."

Section 1 (b) is amended by adding at the end thereof the following subsections:

"(7) Notwithstanding any of the provisions of subsection 1 (b) (5) of this act, services shall be deemed to be in employment if with respect to such services a tax is required to be paid under any Federal law imposing a tax against which credit may be taken for contributions required to be paid into a State unemployment compensation fund."

"(8) (i) Any service performed for an employing unit, which is excluded under the definition of employment in section 1 (b) (5) and with respect to which no payments are required under the employment security law of another State or of the Federal Government may be deemed to constitute employment for all purposes of this act: Provided, That the Board has approved a written election to that effect filed by the employing unit for which the service is performed, as of the date stated in such approval. No election shall be approved by the Board unless it (A) includes all the service of the type specified in each establishment or place of business for which the election is made, and (B) is made for not less than 2 calendar years.

"(ii) Any service which, because of an election by an employing unit under section 1 (b) (8) (i), is employment subject to this act shall cease to be employment subject to the act as of January 1 of any calendar year subsequent to the 2 calendar years of the election, only if not later than March 15 of such year, either such employing unit has filed with the Board a written notice to that effect, or the Board on its own motion has given notice of termination of such coverage."

Section 1 (c) is amended by repealing subsection (1) and renumbering subsection (2) to be subsection (1) and subsection (3) to be subsection (2) and subsection (4) to be subsection (3).

Section 1 (h) is amended to read as follows:

"(h) 'Benefit year' with respect to any individual means the 52 consecutive-week period beginning with the first day of the first week with respect to which the individual first files a valid claim for benefits, and thereafter the 52 consecutive-week period beginning with the first day of the first week with respect to which the individual next files a valid claim for benefits after the termination of his last preceding benefit year. Any claim for benefits made in accordance with section 11 of this act shall be deemed to be a 'valid claim' for the purposes of this subsection if the individual has during his base period been paid wages for employment by employers as required by the provisions of section 7 of the act."

Section 1 (m) is amended to read as follows:

a

"(m) 'Employment office' means a free public employment office or branch thereof operated by this or any other State as part of a State-controlled system of public employment offices or by a Federal agency or any agency of a foreign government charged with the administration of an unemployment-insurance program or free public employment offices."

Section 1 is amended by adding at the end thereof the following subsections:

"(t) The term 'American vessel' means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew performs service solely for one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any State.

"(u) The term 'principal base period employer' means the employer that paid a claimant the greatest amount of wages used In the in the computation of his claim. event two or more employers paid the claimant identical amounts, the employer in such group for whom the claimant most recently worked shall be the principal base period employer."

Section 3 (c) (1) is amended by adding at the end thereof the following: "Each year the Board shall credit to each of such accounts having a positive reserve on the computation date, the interest earned by such accounts from the Federal Government. This shall be done by averaging the interest rate paid for the four quarters ending on the computation date and crediting to each such account the amount which the reserve on such computation date would earn at such average rate of interest."

Section 3 (c) (2) is amended by adding at the end thereof the following:

"The principal base period employer shall be notified of each payment of benefits to a claimant at the time of such payment." Section 3 (c) (7) (a) is amended to read as follows:

"(a) If 25 percent or more of the business of any employer is transferred, the transferee shall be determined a successor for the purposes of this section.

"(i) If the Board is unable to get information upon which to determine whether or not 25 percent of the business has been transferred, it may, in its discretion, make such determination based upon the quarterly payrolls of the employers involved for the last complete calendar quarter prior to the transfer and the first complete calendar quarter after such transfer.

"(ii) In the event of a transfer of 25 percent or more of the assets of a covered employer's business by any means whatever,

otherwise than in the ordinary course of trade, such transfer shall be deemed a transfer of business and shall constitute the transferee a successor hereunder, unless the Board, on its own motion or on application of an interested party, finds that all of the following conditions exist:

"(1) The transferee has not assumed any of the transferor's obligations;

"(2) The transferee has not continued or resumed transferor's goodwill;

"(3) The transferee has not continued or resumed the business of the transferor, either in the same establishment or elsewhere; and

"(4) The transferee has not employed substantially the same employees as those the transferor had employed in connection with the assets transferred."

Section 3 (c) (7) (c) is amended to read as follows:

"(c) The successor shall take over and continue the employer's account, including its reserve and all other aspects of its experience under this section, in proportion to the payroll assignable to the transferred business as determined for the purposes of this section by the Board. However, his successor shall take over only the reserve actually credited to the account of the transferor or for which the transferor has filed a claim with the Board at the date of transfer. The successor shall be secondarily liable for any amounts owed by the employer to the fund at the time of such transfer; but such liability shall be proportioned to the extent of the transfer of business and shall not exceed the value of the assets transferred."

Section 3 (c) (7) (d) is amended to read as follows:

"(d) The benefit chargeability of a successor's account under section 3 (c), if not accrued before the transfer date, shall begin to accrue on the transfer date in case the transferor's benefit chargeability was then accruing; or shall begin to accrue on the date otherwise applicable to the successor, or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor's benefit chargeability was not accruing on the transfer date. Similarly, benefits from a successor's account, if not chargeable before the transfer date, shall become chargeable on the transfer date, in case the transferor was then chargeable for benefit payments; or shall become chargeable on the date otherwise applicable to the successor or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor was chargeable for benefit payments on the transfer date."

Section 3 (c) (7) (f) is amended to read as follows:

"(f) Notwithstanding any other provisions of this section, if the successor employer was an employer subject to this act prior to the date of transfer, his rate of contributions the remainder of the calendar year shall be his rate with respect to the period immediately preceding his date of acquisition. If the successor was not an employer prior to the date of transfer, his rate shall be the rate applicable to the transferor or transferors with respect to the period immediately preceding the date of transfer, provided there was only one transferor or there were only transferors with identical rates; if the transferor rates were not identical, the successor's rate shall be the highest rate applicable to any of the transferors with respect to the period immediately preceding the date of transfer. The rate of the transferor, if still subject to the act, will not be redetremined and shall remain the rate with respect to the period immediately preceding the date of transfer.

"For future years, for the purposes of section 3 (c), the Board shall determine the 'experience under this section' of the successor employer's account and of the transferring employer's account by allocating to

the successor employer's account for each period in question the respective proportions of the transferring employer's payroll, contributions and the benefit charges which the Board determines to be properly assignable to the business transferred."

Section 3 (c) (7) (g) is hereby repealed. Section 3 (c) (8) (i) is amended to read as follows:

"i. If as of the computation date the total of all contributions credited to any employer's account, with respect to employment since May 31, 1939, is in excess of the total benefits paid after June 30, 1939, then chargeable or charged to his account, such excess shall be known as the employer's reserve, and his contribution rate for the ensuing calendar year or part thereof shall be

"(A) 2.7 percent if such reserve is less than 0.9 percent of his average annual payroll;

"(B) 2 percent if such reserve equals or exceeds 0.9 percent but is less than 1.4 percent of his average annual payroll;

"(C) 1.5 percent if such reserve equals or exceeds 1.4 percent but is less than 1.9 percent of his average annual payroll;

"(D) 1 percent if such reserve equals or exceeds 1.9 percent but is less than 2.9 percent of his average annual payroll;

"(E) 0.5 percent if such reserve equals or exceeds 2.9 percent but is less than 3.4 percent of his average annual payroll;

"(F) 0.1 percent if such reserve equals or exceeds 3.4 percent of his average annual payroll."

Section 3 (c) (10) is amended by substiword tuting the word "thirty" for the "fifteen" in the second and seventh sentences thereof.

Section 3 is amended by adding at the end thereof the following new subsections:

"(e) From December 31, 1939, to January 1, 1955, wages, for the purpose of section 3, shall not include any amount in excess of $3,000 paid by an employer to any person arising out of his or her employment during any calendar year. After December

31, 1954, wages shall not include any amount in excess of $3,000 (or in excess of the limitation on the amount of taxable wages fixed by the Federal Unemployment Tax Act (26 U. S. C. 1600, 1607), whichever is greater) actually paid by an employer to any person during any calendar year. After December 31, 1954, the term 'employment' for the purpose of this subsection shall include services constituting employment under any employment security law of another State or of the Federal Government.

"(f) In the event the District of Columbia should elect to cover employees under this act under the provisions of section 1 (b) (8) (i) in lieu of contributions required of employers under this act, the District of Columbia shall pay into the fund an amount equivalent to the amount of benefits paid to individuals based on wages paid by the District. If benefits paid an individual are based on wages paid by both the District of Columbia and one or more other employers, the amount payable by the District to the fund shall bear the same ratio to total benefits paid to the individual as the baseperiod wages paid to the individual by the District of Columbia bears to the total amount of the base-period wages paid to the individual by all of his base-period employers.

"The amount of payment required under this section shall be ascertained by the Board quarterly and shall be paid from the general funds of the District at such time and in such manner as the Commissioners of the District of Columbia may prescribe except that to the extent that benefits are paid on wages paid by the District from special administrative funds, the payment by the District into the unemployment fund shall be made from such special funds.

"(g) Contributions due under this act with respect to wages for insured work shall, for the purpose of this section, be deemed. to have been paid to the fund as of the date payment was made as contributions therefor under another State or Federal employment security law if payment into the fund of such contributions is made on such terms as the director finds will be fair and reasonable as to all affected interests. Payments to the fund under this subsection shall be deemed to be contributions for purposes of section 3."

Section 4 (c) is amended to read as follows:

"(c) (1) If contributions are not paid when due, there shall be added, as part of the contributions, interest at the rate of onehalf of 1 percent per month or fraction thereof from the date the contributions became due until paid.

"(2) If contributions or wage reports are not filed when due or contributions are not paid when due, there shall be added as part of the contributions a penalty of 10 percent of the contributions, but such penalty shall not be less than $5 nor more than $25 and for good cause such penalty may be waived by the Board with the approval of the Commissioners of the District of Columbia." Section 4 (d) is amended to read as follows:

"(d) In the event of the death, dissolution, insolvency, receivership, bankruptcy, composition, or assignment for benefit of creditors of any employer, contributions then or thereafter due from such employer under this section shall have priority over all other claims, except taxes due the United States or the District, and wages (not exceeding $600 with respect to any individual) due for services performed within the 3 months preceding such event."

Section 4 (j) is amended by substituting the following:

"(j) The Board in its discretion, whenever it may deem it administratively advisable, may charge off of its books any unpaid account due the Board or any credit due an employer who has been out of business for a period of more than 3 years. Whenever an account is charged off by the Board, there shall be placed in the minutes of the Board a reason for such action."

Section 4 (1) is amended by adding at the end thereof the following:

"There is hereby established in the Treasury of the United States a special escrow account into which the Board shall deposit all funds received in connection with an offer of compromise. Such funds shall be kept in such escrow account until final action is had upon the offer of compromise and shall not be subject to offset for any indebtedness whatsoever. In the event the compromise is approved, the funds shall be transferred to the District Unemployment Compensation Fund. In the event the compromise is disapproved, the funds shall be immediately returned to the individual who made the offer of compromise."

Section 7 is amended to read as follows:

"AMOUNT AND DURATION OF BENEFITS "SEC. 7. (a) On and after January 1, 1938, benefits shall become payable from the benefit account of the District unemployment fund. All benefits shall be paid through employment offices, in accordance with such regulations as the Board may prescribe.

"(b) Except as provided in section 7 (c), an individual's weekly benefit amount shall be the amount in column (B) of the table in this subsection on the line on which, in column (A), there appears his total wages for employment paid to such individual by employers during that quarter of his base period in which such wages were the highest.

"(c) To qualify for benefits an individual must have been paid wages for employment in his base period totaling not less than the amount in column (C) of the table in section 7 (b) on the line on which, in column (B), there appears his weekly benefit amount, and such wages must have been in at least two calendar quarters in his base period: Provided, That if an individual during his base period has not been paid such an amount but has been paid wages in at least two quarters in his base period totaling not less than the amount in column (C) of the table in section 7 (b) on the line next above the line on which, in column (B), there appears the computed weekly benefit amount, he can qualify for benefits and his weekly benefit amount shall be the amount appearing in column (B) on the line for which the individual qualifies for benefits in column (C).

"(d) Any otherwise eligible individual shall be entitled during any benefit year to a total amount of benefits equal to 26 times his weekly benefit or 38 percent of the wages for employment paid to such individual by employers during his base period, whichever is the lesser: Provided, That such total amount of benefits, if not a multiple of $1, shall be computed to the next higher multiple of $1.

"(e) Any individual who is unemployed in any week as defined in section 1 (e) and who meets the conditions of eligibility for benefits of section 9 and is not disqualified under the provisions of section 10 shall be paid with respect to such week an amount equal to his weekly benefit amount, less the earnings (if any) payable to him with reFor the purpose of this spect to such week. subsection, the term 'earnings' shall include only that part of the remuneration payable to him for such week which is in excess of 40 percent of his weekly benefit amount for any week. Such benefits, if not a multiple of $1, shall be computed to the next higher multiple of $1.

"(f) Dependent's allowance: In addition to the benefits payable under the foregoing subsections of this section, each eligible individual who is unemployed in any week shall be paid with respect to such week $1 for each dependent relative, but not more than $3 shall be paid to an individual as dependent's allowance with respect to any 1 week of unemployment nor shall any weekly benefit which includes a dependent's allowance be paid in the amount of more than $30. An individual's number of dependents shall be determined as of the day with respect to which he first files a valid claim for benefits in any benefit year, and shall be fixed for the