CHAPTER IX
THE RAILROAD UNEMPLOYMENT SYSTEM

The railroad unemployment system is a national system operated under acts of Congress and administered by the national Railroad Retirement Board. The present Railroad Retirement Act, it will be recalled, was developed and supported jointly by the employers and the employees with the co-operation of the Railroad Retirement Board. The Unemployment Compensation Act, in contrast, was drafted by the employees' representatives with the co-operation of the Chairman of the Railroad Retirement Board and was opposed by the employers both on its original passage and subsequent amendment. More detail on this difference will be given from time to time in connection with the special features of the act.


COVERAGE

The coverage of the railroad unemployment system is substantially the same as that of the railroad retirement system which was described in some detail in the chapter on that subject. The details will not be repeated here. Broadly, the unemployment compensation system covers the steam railroad industry of the country that comes under the Interstate Commerce Act, including however, the employee representatives of the railroad labor organizations.


FINANCING

Money to support the system comes in general from compulsory contributions of 3 per cent of compensation not in excess of $300 a month, which employers have to pay, and which are collected directly by the Railroad Retirement Board. Under the Railroad Retirement Act, it will be recalled, the revenues were secured from excise taxes levied against the employers and income taxes levied against the employees, and all these taxes were collected by the Bureau of Internal Revenue. The Bureau of Internal Revenue has nothing to do with collections for the

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