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OFFICE OF NATIONAL RECOVERY ADMINISTRATION 
DIVISION OF REVIEW 



AGREEMENT UNDER SECTIONS 4(a) AND 
7(b) OF THE NIRA 



By 



Creston A. Giblin 



WORK MATERIALS NO. 50 



NRA ORGANIZATION STUDIES SECTION 
March. 1936 



OFFICE OF lUTIOIJAL EEGOVSRY ADLiIHISTHATIOF 
DIVISION OF HEVIEW 



^HEELIENTS IMDSR SECTION 4(a) AtOD 
7(b) OP THE NIEA 

Creston A, Giolin 



IJRA OaCMIZAIIOl-I STUDIES SECTION 
March, 1935 



9759 



FOREWORD 



This study of Agreements \mder Sections 4(a) and 
7(b) of the E. I. R. A. vias pre-oared by Mr. Creston A. Giblin 
of the IIHA Organization Studies Section, Mr. VJilliam V/. 
Bardsley in charge. 

The study deals historically and analytically with 
the promulgation and administi-ation of agreements under the 
two sections, of the Recovery Act. The report does not set 
forth the substance of every agreement entered into pursup.nt 
to the Act and this fact night indicate a field for further 
review. However, Part 1, oi the study entitled, "The Content 
of K. I. R. A. Administrative Legislation" ('Tor!: Ivpterials 
llo. 35) deals with the substantive content of the agreements. 

The author's concliisions are set forth in the 
Summa.ry Sta.tonent irr.mediately follov/ing the Ta,ble of Contents, 
as T;ell as in Chapter X and certadn recommenda-tions by the 
author vdth respect to any nev/ legislation of the tj'pe of the 
national Industrial P.ecovery Act are to be found in Cl'iarjter XI. 
These recommendations and conclusions of the author are, of 
course, not official utterances. They constitute a challenge 
to fiirther tiiought. 

At tiiG bac]': of this report will be foiuid a brief 
statement of the studies TOidcrtaken by the Division of Review. 



L. C. Lfiarshall, Director 
Division of Rovievv 



9759 



(I 



TA3LE OF CONTENTS 
PART I. 
GHAPTEH I 
IIWEODUCTIOII Page 

I . ScoT.e of Study 1 

II. Codes nnd Agreements Distinguished 1 

CHAPTEE II. 
SEGTIOK 4(,-:) OP I'.I.S.A. 

I. provisions 3 

II. Purposes 2 

CHAPTE,H III. 
THE PHESIDEIIT'S ESEIvPLCYIvENT AGKEELSNT 

I. C-eneral Information. 4 

II, Origin and Purpose 4 

III. Apolication 5 

IV. Riration 7 

V, Provisions 8 

VI. Suosequent Departures from Basic Provisions 9 

VII. Sui-mn&ry 10 

CHAPTER IV. 
OTHER AGREElvERTS UlIXER SECTION 4(a) 

I. Service Trpde Agreements 12 

II. Territorial Agreements 16 

III. Prison Compact 19 

IV. Agreement Among Tire Manufacturers and Distributors .... 22 

V. Captive Mines Agreement 23 

VI , Liscellpneous 27 



9759 



CHAPTER V. Pa^e 

EltFCHCUvElTT OF 4( a) AG-REZlviElTT S 28 

I. ivieons of Enforcement Provided hy the Act 28 

II. Methods of Enforcement Adopted hy IWA 28 

A, Blue Eagle Emhlem 28 

3. The IffiA Lphel 30 

C. Government Contracts 31 

III. Judicial &:forcement hy Private Parties 32 

A. Collective Bargaining Provisions of Section 7(a) .. 32 

B. Suits for Back ¥ages 33 

IV. Legal Helationship of Signatories to the PEA 
to (a) the President; ("b) Each Other; and 

(c) Third Parties 34 

CHAPTEH VI. 

SECTION 7(1d) op N.I.S.A. 38 

I. Provisions 38 

II. Purposes 38 

III. Scopo of Agreements Approved Under 7(1)) 39 

A, ArnhigTiity of Section 39 

3. Legisla.tive Intent 39 

C. HEA Interpretations . ■> 41 

IV. Distinguishing Characteristics of 4(a) and 7(1)) 

Agreements » 41 

CHAPTER VII, 

EXTENT TO TffilCH SEGTIOH 7 (h ) UTILIZED 43 

I, Area Agreements Under The Construction Code 43 

A. Origin 43 

B. Scope 44 

C. Procedure 44 

D. Administration 45 

E. Experience and Prohlem-S 46 

II . The Ar.rjalachian Agreement 47 

CHAPTER VIII. 

EPEECT OP SCKECHTES DECISION UPOK SECTIONS 4(a) AND 7(h) 

OP H.I.R.A 53 



9759 



Cl-UPTSH IX. Paffc 

PROFOSZD VOLbl^^Ti^RY AGKEEivIENTS UlffiGR 4(a) OF JuviSFDED NIHA 54 

CHAPTER X. 

FI"j.IDIlIG-S C:l CONCLUSIOHS 58 

CHiiPTER XI . 

SUGGESTICl'S Am RSCCLB/IEilDATIONS 60 

AP?E:yDIX I ., 61 

APIEiSIX II ? 

■/^P'oendii: 

A NRA Biilletin No, 3 - "The President's 

Reemr-loyment A/jreement" 62-66 

B "Excerpts From a. Report on Burenu of Pub- 

lic Relations, "By Charles S. Horner, 1933 .. 67-68 

C iJRA Bulletin ¥o . 4 - ''What the Blue Eagle 

i-.;e;uns to You rna How You Can Get It." 69-88 

D Covjy of President's Reemployment Agreement 

And Cei'tif ic'-.te of Conplia,nce P.9-91 

E "Comments on PRA Excentions, ty L, S. Lightner, 

June 1?, 1935 92-95 

F KHA Of "'ice Order No. 97, Re: Service Tr^ides. 99 

F-1 Copy of Form Letter of Instructions to Mem- 
ters of Service Trades Coming Under Adminis- 
trative Orders X-37, X-50, X-54, Regp.rding 
Irocsdv-re .......... ^ ino-102 

G- Form of Affiaavit xiccompanying Petition for 
Au:ninistrative Ap"orova-l of Local Code of 
Fair Trade Practices 103 

H Form of Petition for Acuninistrative Ap-oroval 

of Local Code of Fair Trade Practices 104-107 

I Form Letter to lie'iibers of Service Trades, 

Other than Shoe Reouilding Trade » 108-109 

J Approved Trade Practice Agreement for the 

Cleaning and Dj'-eing Trade in Rockland County, 

New York 110-119 

K Approved Agreement for the Shoe Rebuilding 

Trade in the District of Columbia ., 120-127 

9759 -iv- 



Appendix Fa^^es 

L 'MA Office Order No. 102 of July 14, 1934, re: 
Acjiiinistrator's Territorial Cooperation Agree- 
ment 128 

M Code A\\thority Field Letter No. 5, re: "Right 
of Code Authority to Co-operate in Correcting 
Unfair Prison Competition." 129-131 

K Instructions to Complainants Against Unfair 

Prison Competition , 132-134 

Administrative Order ITo. V-2 of May 3, 1954, 
Authorizing use of NEA Lahels on Prison G-oods 
Made Under Prison Compact 135-136 

P Co:3y of Memo of Den. 3, i934, from Linton M. 
Collins to Blacla^,'ell Smith, re: "Information 
Pertaining to the Prison Labor Compact" 137^138 

Q, Administrative Order No„ 7-3 of June 12, 1935, 

Lodifying Prior Order V-? of May 3, 1934 139 

E PLeport of Committee appointed ty the President 
to Investigate and Reoort on Prison Lahor Com- 
pact 140 

S Co;-,'y of i.Iemo of Dec. 1, 1934, from Peter Seitz 

to Linton M. Collins Re: "Legal Validity of the 

Prison Compact," 141-143 

T Report of roputy Administrator Kress to NBA 

Ac^iiinistrator, dated Apr, 6, 1934, re: Agree- 
ment Ar:!Ong Tire Msjiuf actvirers and Distrihutors .. 144-148 

U Copy of Coptive Mines Agreement 149-.150 

V Mil Press Release Mo, 095 of Oct. 2, 1933, 
Containing Text of TelegrEa Sent "by General 
Jolmson to Phillip Murray, V. P., United Mine 
T7or];ers ' Unicn ^ , « .. . - ^ o r ., ... . 151 

TST Copy of Se,cjna Telegram sent sane day (Oct. 2, 
1933) hy General Johnson to Phillip Murray; 
pnd also Copy of Letter Referred to in that 
Telegram, seiit ty Thomas Moses, President of 
H. C. Prick Coke Go. to Phillip Murray 152-153 

X Copy of White House jlnnouncement of Oct. 7, 

1933, re: Crptive Mines 154 

Y MRA Press Release llo. 2826 of January 19, 1934, 
re: Decision of National Labor Board in Captive 

Mine Cases 155-161 

Z "Comments on the President's Reem-nloyment 

Agreement," "by J, E. Peebles, June 4, 1935 162-164 

9759 -V- 



Appendix Pages 

AA IfflA B^illetin ¥.g . 5, "SeguJ.ations on Pro- 
cedure for Local MA Complipjice Boards." .., 165-175 

BB E::eCT.tivp Order Ho. 63S7 of Cctolier 14, 

1953, Prescribing Penalties for false 

display of NEA Emblem or Insignia • 176 

CO ITPA Office Order Ho. 103 of July 14, 

1954, He: Agreements for Teiiporary Issunnce 
of Labels in the Territories of Puerto 

aico ?nd Hawaii 177 

DD Sicecxitive Order ¥.o, 6246, Re: G-overn- 

nent Contracts 176 

EE Er-ecutive Order IJo. 6646 of March 14, 
1S34, He: Government Contracts and 
Contracts Involving; the use of G-overn- 
i:ient Funds 179-180 

FP Section of KRA Office Manual, He: 

Decisions in PHA Cases 181-182 

G-G Section of mU. Office Manual Re: Suits 

for Back Wages under PHA 183-187 

HH IJBA Press Release No. 191 of Aug. 5, 

1933, Containing Text of KRA Adminis- 
trator's Statement He: Section 10(b) 

of Act , 188 

II Memo from L. A. Knapp to Blackwell 
Smith, et al.. Re: Section 7(b) of 
the N.I.R.A 189 

JJ Legal Division Memorandum No. 53 of 
July 26, 1954, He: Section 7(b) of 
the N. I. R. A 190-191 

KK Legal Research Memo No. 19 of June 12, 

1934, He: Section 7(b) of the Act 192-195 

LL Mogor G-eo. L. Berry's Memo of April 24, 
1934, Establishing Policy of Area Agree- 
ment Section, Construction Division, 
NHA 196-205 



-vi- 



A-ppendix 



MM Llemorpiidum of Apr. 8, 1935, from Alvin 

Brov^n to W. A, Harriman, Re: "Questions 

nhich have Arisen in Connection with 

Regional !7age Agreements . " 206-208 

NN "Lahor and the Codified Constraction 

Industry Under The IIRA," Prepared hy the 

Building Trades Eept., A. F. of L 209-2S1 

00 I'lRA Press Release IIo. 819 of Sept. IB, 

1933, Containing Text of Dep, Admnr. Simp- 
son's Report to the Administrator of 
MA, re: Bituminous Coal Code 232-235 

PP Aopalachian Agreement of Sent. 21, 

1935 236-254 

0,0, A'D'oalachian Agreement of March 29, 

1934 255-267 

HR HRA Press Release No. 10753 of Mar. 31, 
1935, Re: Amendment of Bituminous Coal 
Code and Extension of its Provisions 
to June 16, 1935 268 

SS Aopalachian Agreement of September 26, 

1935 \ 269-282 

TT KRA Legal Research Section Memo No. 1010 
of Octoher 21, 1935 - "Memorandum of Law 
Concerning the Effect of the Schechter 
Desision upon Sections 4(a) and 7(1)) of 
I'.I.R.A." 283-290 

UU IIRA Office Instruction Ko. 28 of Sept. 
oO, 1935, Re: Voluntary Agreements 
Under NIRA as Amended and Extended 291-293 

V"V Co;oy of Report of Findings and Reoommen- 
dations made "by Deputy Section Pirector, 
Division of Business Coo-oeration, MRA, 
to the 13RA Administrator, Re: Proposed 
Voluntary MRA Administrator, Re: Pro- 
posed Voluntary Labor Agreement Under 
ITIRA Extended 294-296 

W Copy of "Title A" (Labor Provisions) of 
proposed Voluntary Agreement for the 
TJholesale Tobacco Trade 298-300 



9759 



Appendix Pages 



XX Copy of "Title A" (Labor Provisions) of 
-proposed Voluntary Agreement for the 
Sxpanding and Specialty Paper Products 
Industry 301-3^6 

YY Co;oy of "Title A" (Labor Provisions) 
of proTDOsed Voluntary Agreement for 
the Candle Manufacturing Industry 307-313 



9759 



SmiuAEi STATSl.Sra 



Prior to the ScLecter Decision, the forriiulation and administra- 
tion of "voli-mtary" and "mutua.!" agreements, pursuant to Sections 
4(a") and 7(o), respectively, of Title I of the National Industrial 
Recovery Act, constituted a plmse of K5A activity which vas essen- 
tially incidental or siipplementary to the major phases of code- 
mailing and code alrninistraticn. 

Section 4(a) of the Act afforded troad possihilities for 
varied types of voluntary agreements, ana in the course of the 
Act's administration, such possibilities were rather freely util- 
ized. 

On the \7hole, the vol'u:iatar;/ agreements promulgated under 
authority granted in Section 4(a) aided to some extent at least 
in the attainment of IIRA ohjectivos. In this regard, the 
President's Eeeniployment Agreement may be said to have nlayed 
the most conspicuous role, in that it brought about by vol^ontary 
action, the establisliment of a national minimum wage and maximum 
work \7eeh for a large section of industry. 

The general eifectivenesp. of voluntary agreements -binder Section 
4(a), were lessened becaxxse they were subject to the following 
weaknesses, viz., (a) lack of statutory means of enforcing compliance 
with the terras of such agreements; (b) the seeming necessity - due 
to the magnitude and ne'.aiess of the undertaldng, and the emergency 
aspects of the task - of arriving at administrative policy and 
procedure by tri^.l and error. 

In the light of ITHA experience, voluntary'- agreements provided for 
under LIIHA, as extended, can not be relied upon exclusively as the 
solution of the oroblems which gave birth to ITEA. 

3y contrast vrith Section 4(a), the Agreement provision of 
Section 7(b) afforded rather limited possibilities. It authorized 
the establisliment of labor standards by moans of collective bargain- 
ing agreements between re-oresentative labor and employer groups 
only in those ind-astries where collective bargaining was already 
recogniTied and established. 

Section 7(b) was put to considerable use under the Bituminous 
Coal Industrie and the Constraction Industry Codes and as a conse- 
quence thereof, the nwnber of wa§e earners working under collective 
agreements negotiated in their behalf by labor unions, increased 
considerably under ITI-A.. 

By prescribing the same penalties for violation of collective 
bargaining agreements as were applicable to code violations, Section 
7(b) hn.d the effect of vestin^ such agreements with a legal status 

9759 



tlip.t did not exist prior to HRA.. This iiev; status Y/as further 
a-at:raented 07 the Construction Code, which provided that collec- 
tive wage agreements after approval Ly the President in ac- 
cordance with Section 7(1)) of the Act were to be tinding upon 
all erriployers in that industry v.dthin tlie area defined in such 
agreements, v;hether parties thereto or not. 

Area Agreements imder the "basic code for the Constructioii 
Indiistry were confined to the Dvlldin^ trades crafts where lahor 
was well organized and v/ere also confined in apolication mainly 
to metroiDolitan areas where lalor unions were most powerful. 

A greater riegree of success for the Area Agreement program "onder 
the Construction Code might have heen attained had there heen a 
clearly defined administrative policy regarding numerous questions 
which arose in connection therewith; and had IT. H. A. given wider 
encouragem:ent to the liandling of labor problems by means of col- 
lective agreements. 

Section 7(b) was more extensively applied to and achieved its 
greatest prominence in the Bituminous Coal Ind\istry. The Appalachian 
Agreement, which was negotiated in accorda,nce with the terms of 
Section 7(b) was iia.iled by its sponsors as the greatest in magnitude 
and importance that ha.d ever been negotiated in the history of col- 
lective bargaining in the United States and they further referred to 
it as marking a. new era in the task of stabilizing and modernizing 
the economic processes of the iiituminous Coal Industry. It -undeniably 
proved a potent factor in inducing and maintaining united action of 
labor and management, which was one of the stated objectives of the 
Recovery Act, and enabled mine v/orkers throughout the industry to 
secure "higher wages and better working conditions than had been their 
lot prior to HHA. 



;759 



CKAPT3H I 

i:-THnLuGTioi: 



I. SCOPE OF SI'ULY. 

For tiie attaiiiiiient cf tiie basic objectives set forth in 
the first Section of Title I, captioned "Declaration of Policy," 
the National Industrial P.ecovery Act made provision for several 
alternative methods jf rei5ulating; industry and trade. liirou^h the 
mediiun of Codes of Fair Competition, either "approved" or "prescrihed" 
by the President, agreements and licenses, it was the intent of the 
Statute that fair trade practice anc. labor stancards v/ould oe estab- 
lished, on the basis of which all enterprises in each trade or' industry 
vrauld conduct business. Of che means thus provided, the licensing 
power was never invoked in the administration of the lav/ and no codes 
were "prescribed'' by the PresideSt. Codec of Fair Competition submitted 
for approval of the President ''o:/ trade or industrial associations pur- 
suant to Section 3 (a) and agreements formulated in accordance with au- 
thority granted in Sections •- (a) and 7 (o) con:;ti£ute.r' the methods 
generally relied upon to effect-a8.te the purposes of the Act, It is the 
latterly mentioned phase of 1m?A s^ctivity, vi2., the pro^malgation and 
administration of agreements under Sections ^l (r.) and 7 (b) with v/hich 
this stud;/ is concerned and which the v/riter prorioses to discuss here- 
with, from a primarily historical and an incidentally analytical view- 
point, 

II, CODES DISTIjGUISHED fpo^ agpe:];^leijts. ■ • 

(l) Codes were proposed by an entire industry or by a 
substantial majorit:,^ thereof and they presupposed an organized in- , 
dustry closely Icnit in a trade association integrated nationally or 
over a v/ide refion; whereas, individxials, different trade groups and 
different labor grouris were permitted to enter into agreements, either 
jointly or severally, 

(£) Agreements presuppose circumstances under which it 
might be more desirable to establish certain standards, particularly 
respecting wages, hours and other conditions of employment by volun- 
tary assent of industry members or by collective bargaining between 
employers and employees, than by the ordinary procedure of code-making, 

(3) The term "agreement" signifies volition and though, 
properly speahing, it is a wider term than "contract," it is often 
used as synonymous with "contract" (*). On the other hand, under the 
Act, a code :vhen. adgrited oy the industry and apiivoved by the President 
was not a "contract,"' It v.'as sta-tutor}- in nature and became the laiv 
of the industry and was binding upon all those engaged in that industry, 
whether or not thev particiuated in its forraulation or formally as- 
sented to its adoption. 



(*) See -tilacjr's Law Dictionary, Second Edition, p. 53. 
9759 



ClIAPTEH II 
SECTi:;!^ !-(a) 0? IJ.I.H.A. 

I. FROVISIOIJS. 

Section 4(a) of ti,ie Act vested the Pre?ident wit.i authority: 

(1) To enter into agreeuients relating; to any trade or industry 
with; 

a. Persons eni^aged in trade or industry. 

b. Labor organizations. 

c. Trade or industrial organizations or groups. 

(2) To approve voluntary agreei.ients hetv/een and among the 
foregoing persons, orgmizations or groups. 

(3) F'20Y IDES , however, that t-ie President finds such agree- 
ments: 

a. ",Vill help effectuate the Policy of Title I of the 
Act regarding transactions in or affecting inter- 
state or foreign commerce. 

b. Are consistent wita reouirements forbidding codes 
that promote monopoly or discriminate against small 
enterprises. 

II. Purposes. 

Specifically referring to t-.'is Section of' t.ij Act, the Brookings 
Institution in its publication devoted to an analysis and appraisal of 
the national Recovery Administration, has t'lis to sa;y(*); 

"Tlie possibilities under this sub-section are very exten- 
sive. Almost any type of agreement (between employers 
and employees, between members of trade groups, between 
one labor union and another, between one trade group and 
another, and so on) which is deemed to effectuate the 
purposes of the law and to which the President wishes to 
give the sanction of ills approval may be coinprehended 
within its sweeping terras. Its purpose appears to be 
to facilitate any sort of agreement which may be deemed 
a desirable supplement to tae provisions of codes." 



(*) "The National Recovery Ad-ainistration" - An Analysis and 
Appraisal - Brookings Institution, page 11. 



9759 



In addition to t'le broad ^enaral jarpose referred to in tlie above 
quotation, i.e., to facilitate agree.aant- wliiai may be deemed desirable 
supple:;ients to provisions of codes, it i^ rsasonable to infer that the 
section was intended also to serve t.ie followin;? pii.r_jOS3s: (i) A 
method of impleraentin,^ t.ie general labor principles of the Act, in that 
it authorized the President to approve volixnt3,ry agreements between 
labor or^'anisations and employers; (3) A method, in lieu of or pending 
adoption of ;i code, wherjby unfair or destructive trade practices prevar- 
lent in a trade or industry could be eliminated by vol-ojitary action on 
the part of me;.ibers of juc"i trade cr industry. 

Such further possibilities as it afforded and wAca were utilized 
rather freely in the adninistration of the Act, v/ere to bridge the time 
gap to code completion and expedite ma.ss increase of tae purchasing power 
of wage-earners. 

The section provided the statutory basis of authority for the 
launching of tie prot^rain of t.ie "President" s 2eemplc5mient Agreement" 
(PPA.), and also for the proualgation of various other types of agreements. 
A comorehensive res^ame of all such agreements is the aim of the immed- 
iately ensuing cnapters. 



9759 



-4- 

CHAPTEE. Ill 
THE PESSIDEilT'S EESMPLOYIEUT AGEEEMEKT 



I. GFlfSRAL Iir:^GHIil.T'0:T. 

By far the most im-^ortrnt of the agreenents which rrere -Dromulgated 
under Section 4(aj of IT. I. P.. A. and those with which the -oublic at 
large cane into more intimate contact were those interim agreements 
with the President entered_ into hy i-idividual emT3loyers loonding adoT5tion 
of a code for tlieir industry or trade, in resoonse to the nation-wide 
re-em-oloynent dri"e inaugurated "by the President through the Fationa.1 
Recovery Administra.tion, in July, 1933. This form of "blaJilret agreement 
was designated PS "The President's He-enployment Agreement (PFJl)." 

It has heen stated, and a"otly so, that: 

"The Recovery Adnlnistrr'tion hrs teen concerned almost 
from the beginning with two imjortant tasks: One, the making 
of codes; the other txie formulation of the President's Re- 
emr)loyment Agreement. To tnese was added the "oroblem of ad- 
ministrr't ion. Though all have gone forward, enpha.sis has so 
shifted that three fairly well-defined periods of development 
emerge. The first loeriod is characterized 'by an intensive 
effort on the -part of the Recovery Administration to get codes 
through, ePTjecially those covering the or)erations of large 
industries. The second oeriod witnessed a shift of emphasis 
from code-making to the formulation of re-e;.rployment agree- 
ments. Diiring the third "oeriod the major efforts of the Re- 
covery Administration were shifted "back to code-mal:ing, and 
machinery for code administration was set in motion. The 
activity of any one of these Periods merges into thpt of the 
others." (*) 

In the discussion to follow, pn attemijt will he made to sketch 
only such a:iT)ects and -ohases of the President's Re-employment Agree- 
ment as are "believed adenuate to serve the oaroose of this report. A 
seiDarate study of a raucn h reader s^ooe is now under way, which is de- 
signed to reflect, in rather minute deta.il, tae historical "background 
of the P?^ and the Adr.iinistrative method followed, the machinery es- 
ta"blished and the rules and regulations orescri'bed to govern its ad- 
ministration. (**) 

II. GRIOI^T ;:-j p,jp.P0SS. 

The varied "but correlated origins and causes of the President's 
Re-emplo:'^ent Agreement and the drive to enlist nation-'^ide acce-otance 
thereof "by emnloyers (referred to generally as "The Blue Eagle Drive" 
and also as "The President's Re-em-oloyment Drive") may "be summarized as 
follows: 

(*) "The ABC 0^ the TPA.," by Dear in g, at r.l, orge 42. 
(**) History of t.he P}iA "by H. C. Hoover, Adr.iinistration Studies, Div- 
ision of Review. 
9759 



( 1) The administrative impossitili t;- of inmediatelv placing all 
of American trade and industry under Codes of ?air Competition was 
recognized even Trefore the first code had been approved and it was 
deemed essential to devise an emergency plan which while bridging the 
time gap to code completion, would provide a means of establishing uni- 
form standards respecting wages, hours and general labor conditions in 
all industries and all localities at about the same time. 

(2) Against the inflation background and the equally if not more 
im.portant prospective - considerable increase in Ipbor costs under 

NHA -, there had developed befOx-e administration of the Act had hardly begun 
speculative movements of some proportions,, which .took the form of in- 
ventory stocl:ing-up, overproduction and even hoarding of goods; and too, 
prices were rising far in advance of wages, emplojinent and purchasing 
power. These factors led to tne conviction thnt if fru.stration of the 
Act's objectives was to be prevented, a sv;ift inci'ease in mass purchas- 
ing T--0"'er was imperative and that tnis could best be brought about by 
simultaneous and concerted action to shorten the work-week and increase 
wages for the shorter week. Further, a more expeditious means than that 
of code-making was deemed necessary to achieve the desired results. 

(3) The Act left an inherent competitive disadvantage to inter- 
state as 1^ istinguishef" from, intra-state business: A blanket agreement 
would conceivably result in many strictly intra-state business groups 
being covered, that would ordinarily not be amenable to any of the code 
arrangements. 

(4) It was believed that if industries were subjected to tne terms 
of a general agreement, they woul" be more prompt in the framing and 
submiitting of their ov-n special codes. 

NRA Bulletin No. 3, issued under date of July 30, 1933, announced 
"the i;.lan to create nation-wide reemT'loyrrent by Presidential Agreements."* 
Speaking over the radio -m July 24, 1933, the President explained the 
plan in these vrerds: 

"It (The FHa) is a plan, deliberate, reasonable 
and just, intended to put into effect at once the 
most important of the broad principles which are 
being established, industry by industry, throu.?h 
codes. Haturrlly, it takes a great deal of or- 
ganizing and a great many hearings and many months 
to get these codes perfected and signed and we can- 
not wait for all of them to go through. The blan- 
ket agreement, however, which I am sending; to every 
employer, will start tne wheels turnin.: now and not 
six months from, now The essence of the prin - 
ciple is a universpl limitation of hours of vrork per 
week for any individual by conmoh consent and a uni- 
versal payment of wages above a minimum also by com- 
mon consent " 



(*) See Aprendix for coty of Bulletin ,1=3 - (Appendi;- "A") 
9759 



On Julr 27, 1933, the President addressed a corair'-anication "To 
Every Employer," urging him to sif'nify his rissent to the ap:reement 
which accompanied each sucn messat'e, by sic2;ning and returning it to 
a district office of the Department of Commerce. Also accompan2''ing 
the messpse and a?;reement was a form of certificate of compliance. 
The principal inc'-'acement to employers to cooperate in insuring' the 
success of the undertakini.e: was the ^rnnt of permission to display the 
"Blue Eagle," an emhlem devised simultaneously with adoption of the 
P?.A program, to identify those who assented to and complied with the 
terms of the a^-^reerrent . Consu^mers of the country were requested to 
pledge themselves to patronize only those enTDloyois v/ho had subscribed 
either to Codes of Fair Competition or to reesnplo.TTnent agreements, and 
siw-i'natory employers agreed "to support and patronize establishments 
which also have sifned this agreement." 

The intensive "educational" campaign conducted to arouse the 
support of the public will not be reviev/ed here. This is to be fully 
covered in a separate study end report.* Also in this connection the 
reader may refer to "Excerpts From A Report On Bureau of Public 'Re- 
lations," by Charles S. Horner, former NHA Public Relations Director, 
which will be found in the Appendix to this report.** 

The steps necessary to be taken by an employer to obtain a "Blue 
Eagle" were outlined in ilP.A Bulletin Fo . 4, as follows: 

( 1) Si;;Ti the President's ^e-emplojTiient 'Agreement. 

(2) Mail the sit;necl At-reement to a district office of the 
Department of Commerce. 

(3) Put the Agreement into effect. 

(4) Sign a Certificate of Compliance. 

(5) Deliver the Certific-ite of Compliance to a local post office 
and obtain the Blue Eagle from the Postmaster.*** 

The use of the Blue Eagle as an emblem of compliance vdll be 
discussed further in a subsequent chapter of this paper under the head- 
ing of: "Enforcement of 4(a) Agreements." 

III. APPLICATION. 

Ori..'i nally, the only groups of employment not intended to be cover- 
ed by the President's Re-employment Agreement were: 



(*) History of the FRA by H. C. Hoover, Administration Studies, 
Division of Review. 

(**) See Appendix "B" . 

(***) Pa«;e 2 Bulletin ,f4, under h-' ad i n ■: , "-Tow to get the Blue Eagle" 
See Appendix "C" for cOTiy of Bulletin. 



9759 



( 1) Professional occ-upations. 

(2) Em"plo,Y^>es of Jeiieml, State, nnci local governments and other 
riiblic institutions and a^^oncies. 

i^) A£rricult''ai'al labor. 

(4) Domestic servants. 

(5) Persons bu^^inf?: ^joorls and sellin?' them independently or per- 
sons selline solel/ on commission, provided, however, that 
persons rerularly employed to sell on commission, with a 
base salary or ^ruaranteed comipensation, come within require- 
ments of the Agreement.* 

Subsequently, in resfonse to all-jp-^ations of undue hardshi-p, the 
President, by Executive Order No. 6?5± of October ?3, 1933,** released 
from the Agreement those employtirs vho employed less than five persons 
and who were engaged in strictly local trade or service in tovjns of 
?.,50i^ or less. This order was subsequently amended by Executive Order 
Ko. 6710 of h'ry 17, 1934,*** which provided that: 

"Employers enga.-.,'ed only locally in retail trade or local 
service trades or industries who operate not more than three 
establishments and whose place or places of business is or are 
-located in a town or towns each of less than 2, SOD population 
and not in the immediate trade area of a city or town of larger 
population, as determined hy the Administrator, are exempted 
from those provisions of the President's 3eemplo;'TTient Agreement 

which relate to hours of emplojmient, rates of paty 

except insofar as any such em-nloyer shall after the effective 
date of this order signify to the Administrator his intention 
to be bo\md by such ].rcvisions " 

Thus by reason of the above raentioiied orders the original coverage 
of the PIa was materially reduced. 

IV. DURATION. 

"During the period of the President's emer- 
gency reemployment drive, that is to say, from 
August 1 to Decem.ber 31, 1933, or to any earlier 
date of approval of a code of Eair Competition to 
which he is subject, the uiider signed agretis v.'ith the 
President " 



(*) See pa^-e 15, Interiretation ?'o . o, NRa "Bulletin ,f4 - Appendix "C" 

(**) See Codes of ?air Competition as approved, 3-overnment Printing 
Office, ^'ol. I pa-re 698 for Executive Order Ijo . 6354. 

(***) See Codes 01 ^air Competition as approved. Government Printing 
Office, Volume X mage 952. 

9759 



The above is cmote'^ from the first parn^x'fiph of the ACTeernent and 
indicntes that "by its own terms tne Arvreemerit was to terminate on Dec- 
ember ?1, 1933. Thnt dnte rtis fixed in the aniisrent expectation that 
the Y'ork of codif icrtion would be substantially comiDletec! by then.* 

Sutsemiently, b;- Executive Order No. 5515 dated December 19, 193:5** 
the term, of the A'-:reement was extended to AT-ril oO , 1934. Pertinent 
excerpts from this Executive Orr er arr- nerevith quoted: 

"employers vho snail have already sir'neo the President's 
■Reemployment ...greemont before January 1, 1934, may accept this 
offer of extension by ciispla,v of the Blue Ea.-le on find after 
January 1, 1934. Employees who shall not have sicrned the Presi- 
dent's ^eemjjloyment Agreement before Jrnuary 1, 1934, may accept 
this offer of extension by sif.niripr the President's 'Reemplo.^Tnent 

A|?^reement Disijlay of the Blue 3pi^le by any employer on 

and after Januar;, 1, 1934, shall i.e deem.ed a re-presentation that 
he is complyiiir' with the President's lee.'irnlo.^m-ient Agreement, as 
extended by tnis Executive Order " 

By a similar executive orrier (No. 6o78-A) issued under date of 
April 14, 1934,*** the duration of" the Agreement was a-^ain extended 
"for a further period be> ,in..in,;- May 1, 1934, and ending when that part 
of nis business (not under a code) becomes subject to an approved Code 
of Fair Competition." 

Thus, it is a'-parent that by reason of the extensions above re- 
ferred to, the President's ^.eemplojTnent Agreement remained in exist- 
ence virtually throughout the life of Codes under the NRA, though its 
importance naturally waned as Codes were approved. Also, as will be 
discussed below, its effectiveness was lessened as a consequence of 
suosequent mooifications to and exceptions from its provisions. 

V. FRCVISIOyS ***" 

Basically, the President's 5e-- employment 'is^Teem^ent provided for 
(a) the limitation of hours of labor under varying circumstances to 
from thirty- -five to forty hours; (b) the fiy..in.a' of minimum wages of 
workers, with child labor excluded from, manufacturing or mechanical 
industries, ranging from thirty cents (3n<;.'') to forty (40^) 
an hoior, with (c) "equitable" corresponding upward adjustment of 
vfages hi.rher than the minimum, (d) limitation of price increases to 
increases in costs, (e) mutual support of enterprises and establishments 



(*) Si^e Appendix "D" for copy of this agreement. 

(**) 3ee Codes of Pair Competition as approved. Government Printing 
Office - Volume XV, 6?3 

(***) See Codes of 7air Co*";] jtltion , as aprroved, .rovernment Printing 
Office, Volu.me IX , ri.'..;e ■£'-1 ■ 

(****) Copy of the Agreenent will be found in the Appendix hereto 
(Ax>pendi>. """) 

9759 



participating: in the comnon .task ana ( f ) flexibility of incidence of 
turdsn throufh ri=^:ht of applicatioTi for ex«':ption or n^odif ication after 
si^ninr: of the Afcrfement. 

In addition to ass.entinr co the exjjres? terms contained in the 
Agreement, emplo;"ers vho signed tne rt--reerr,t:nt also assenteri to ( n) 
the collective tar.-'ainin<-; and lahor organization provisions contained 
in Section 7 ( a) of the Act, and (b) the require'-ents of Section 10 
(b) of the Act, which reserves po-^er in tha President to cancel or 
modify any order, approval, rule or re^:ulation issued under the Act. 
The TDroVisions of tnese sections were not set forth in the Agreement 
but were incorpoi-nted in it by reference to the Stiction numbers only, 
in the concluding sentence of the fin;il jaragraph (,rl4) of the Agree- 
ment . 

'F'rom time to time, there v^ere a number of so-called "Interpre- 
tations" of the T;rovisions of the Agree^nent issued by the NRA, in- 
cluding Bulletin llo . 4, issued on Aut^i-st ?.5, 1933. That bulletin, 
'"hich v'as entitled "What, the Blue Eagle means to you and how you can 
get it: Off icial . Statemt-mt of the Blue Sagle Division, NRA," con- 
tained an "Official S.;planation of the President's Re-employment A.gree- 
ment (sometimes miscalled ' xhe Blanket Code')-" The "Interpretations" 
and the portion of th^. ."Of f icial Explanation" relating to each para- 
graph of the Agreement are brought toge trie r aifter the text of the para- 
ssrarh and other related rulinxs are also reproduced in connection with 
the paragram of the Agreement to which aj:r; lie able.* 

VI. SUBSEQUENT DEPAITLTRES . E"OIv. BaSIC PBOVISIOrS. 

Fara.'Tarihs 13 and 14 of the 'Agreement afforded avenues of approach 
to the obtainin.-; of mooification of and exceptions to the basic PRA 
standards. The former j.ermitted tne .-'.ecovery Adm.inistration to approve 
ap-olication from industries to substitute certain provisions of their 
■proposed codes for the carresrondini provisions of the President's 
^eem.ployment Agreement. Thus 'o^; the simple expedient of submittini- 
codes, entire industries mi5:ht obtain substitutions, if ITBA so elected,, 
The purpose being to encourage the early suomission of codes. Beginn- 
ing almost immediately upon, the Agreem.ent's going into effect, modifi- 
cations T"ere authorized for many industries, the wages and hours pro- 
visions of the "Dro-posed cocas of those inc. usuries being substituted for 
the corresponding iDrovisions of the Agreement. The number of petitions 
for substitutions. filed .with the. Administration eventually approximated 
575, of which niomber in the neiechborhood of 400 were approved and 
accepted oy the applic-nt industries.** Many of tnese substitutions pro- 
vided for substantial and in a- few cases extreme variations from the 
wa^es and hours provisions of the Agreement. 

By virtue nf Paragraph 14 of the Agreement any individual employer 
who wished to sisn the A^-reement but felt that some particular provi- 
sion thereof v-ould "'ork an undue hardship upon his business might sign 
it and then, in a petition approved by a representative trade association 



(*) See A"openriix "C" 

(**) Based on statistics supplied by Field Section of NRA. 
9759 



-10- 

of his industry, or other representative or,^anization designated by 
NRA, mitrht apply for a stay of such provision pendin.5 a summary in- 
vestigation by N^. Suffice it to say here that this resulted in a 
veritable flood of petitions for exceptions,* \'Thich as in the case 
of FHA substitution^!, was conducive to a lessening of the general 
effectiveness of the Agreement. 

VII. sm^'-A^Y. 

G-eneral Hugh 3. Johnson, former N1A Administrator, cites as 
accomplishments of the PRA for the first four months of its operation, 
substantially the following:** 

(a) Brou,r";ht 96) of Commerce and Industry voluntarily under 
NIRA. 

(b) Abolished sv.-eatshops and child Inbor. 

(c) Obtained an' Agreement from 96'^t of employers under it to . 
recognize the rights of labor under 7 (o). 

(d) Put ;^, 785, 000 bread-winners back on payrolls and in- 
creased annual purcnasing power by $3,000,000,000. 

(e) Established 40 hours as the' maximiim work-week and 
$lP.on as the ninim.um weekly pay for tne lowest 
paid type of com.mon labor in the United States, and 
practically took the wages of labor out of tne field 
of industrial competition. '■. 

( f ) Changer' desperation into hopefulness not only among 
employees but amon^. e"'ployers throughout the country. 

(g) Acted as the greatest single educ-.tional force in 
ho'"nely economics in oixr history. 

(h) Created, for tne first time, an economic government 

throughout the United States imposed upon the political 
government and nearly as wide in extent. 

(i) Awakened the conscience of the country to its best in- 
terest and its duty to erase these old iniquities. 

That there was spontaneous and v/hole hearted cooperation on the part 
of employers and the public alike at the inception of the PRA program. 



(*) See in this connection, "Comments on PRA Exceptions, "by L.S. 
Lightner, June 12, 1935, cojjy of which is attached hereto as 
"Appendix "E" . 

(*•) "The Blue Ea^i'le, From Egg to Earth," by Gen'l Hugh S. Johnson. 



9750 



-Il- 



ls well known. Assent to the Agreement was given on a v/ide scale, 
as is evidenced by the official records of the Field Section of the 
IRA Compliance Division. Sucn recorcs show that for the period be- 
ginning July 28, 193^1, and extending through the week ending April 2S, 
1934, (last report), there-vrere 2,317,838 Agreements sirxed , affect- 
ing 14,762,029 employees. 

There is more or less unanimity of opinion that the major pro- 
blems which were experienced centered in the administration of Para- 
graphs 13 ano 14 relating to substitutions and ezceptions; and in the 
enforcement of the Agreement. The latter phase will be treated in 
Chapter V of this report. 



i 



9759 



-12- 

CaAPTEH IV 

.OTHEH AGZSEiv.ElITS UaTDEH SECTION 4(a) ' 

I. 'gSRVICE TPJIDE AGHEEiuEilTS. 

The So-called "Service Trade Agreements" vvhich were reliant for 
for their statutory basis of authority upon Section 4(a) of the Act, 
had their origin in Executive Order No. 6723, issued by the President 
under date of Hay 25, 1934 (*"). This order reflected a rather sub- 
stantial change of U.R.A. policy regarding Service Trades or Industries. 
Exoerience had disclosed that a dispro'^ortionate amount of time and ef- 
fort had been exroended in attemtping to enforce Codes of Fair Com-oeti- 
tion for such trades or industries, which were mostly local in charac- 
ter and eviTDloyed relatively only a small number of workers. 

By the terms of the Order, all of the fair trade practice and code 
administration provisions in codes of such service trades or industries 
"as shall hereafter be designated by the Administrator, " were suspend- 
ed. The anlj non-susioended -orovisions of such codes were those govern- 
ing wedges, hours and child-labor and the mandatory -orovisions of Sec- 
tions 7(a) and l'")(t)) of the Act. The same order orcvided further, in 
part, that: 

" in any locality in which 85-o of the members of any 

such designated trade or industry shall propose to agree with the 
President to abide by any local code of fair trade practices s\ig- 
gested hir them for that locality, which schedule shall have been 
approved by the Administrator, the Administrator is authorized 
to maice such agreement, and thereafter no member of such industry 
in any such locality shall be entitled to display the apprppriate 
insignia of the National Recovery Administration unless, in ad- 
dition to the aforesaid non-suspended provisions of the Code, he 
is CO rolying with all terms of such agreement." 

Pursuant to the authority vested in him by the above-mentioned 
Executive Order, the Administrator by Order No. X-37, dated Hay 28, 
1934, (**) designated the following trades and industries to be proper- 
ly included within the purpose and intent of the President's Order: 

(1) Motor Vehicle Storage and Parking Trade. 

(2) Bowling and Billiard Trade. 

(3) Barber Shop Trade. 

(4) Cleaning and Dyeing Trade. 

(5) Shoe Rebuilding Trade. 

(6) Advertising Display Installation Trade. 

(7) Advertising Distributing Trade. 



See Codes of Fair Competition as Approved, Government Printing Office 
Volume X page 954. 

See Codes of Fair Competition as Approved Government Printing Office 
Appendix "K" for copy of Order. Vol\ime XI page 797. 



9759 



-13- 

Siibseq-aently, "by reason of Administrative Orders X-5n of June 13, 
1934, (*) and X-54 of Jane '18, 1934, (**) res^ectivelv, the "Laundty 
Trade" and the "Hotel Industry" ware also designated to cone under the 
said Executive Order ox ilay '.-'.6, 1934. 

Also on June 28, 1934, certain rules and regulations relating to 
the ne^'^ly institiited "Service Trades Program" '?ere prescribed by Ad:'ai- 
nistrative Order No. X-53 (***). Among other things, the latter provi- 
ded tho,t local Code Coiuinittees for the trades designated under Executive 
Order 6723, upon application to the Actjninistrator, may be authorized to 
coooerate v/ith IT.R.A. in coordination and execution of the program. 

The administrative orocadure followed in effectuating the piirpose 
and intent of the Program, may be summarized as follov7s: 

(1) In order to secure consideration by the Administrator of an 
agreement "between members of any of the designated trades and the Pre- 
sident to abide by a "Local Cod3 of fair trade -ora-ctices, " it was neceo- 
sary that a formal petition for aporoval accomoany the proposed schedule 
of fa.ir traxie practices. The names, addresses end connection with the 
trad.e of the sponsoring grouo had to De set out in th.-- oetition, along 
V7ith "orcOi that such group was truly reoresentative of the trade in the 
locality. The locality that the soonsors wished to be covered hy the 
Agreement had to be clearly defined by reference to corporate limits 

of cities or towns and the legal bouiida.ries of counties or similar le- 
gal subdivisions. 

(2) Only those trade practices in pro-oosed schedules which con- 
formed to existing H.R.A. "oolicy on such matters, could be approved. 

(3) Upon receipt h-r the Service Trades Section of '^I.H.A. of the 
proposed schedule of Fair Trade Pra.ctices, it was analyzed and returned 
to the local committee or association a.uthorized to cooperate unofficial- 
Ij in the coordination and execution of the urogram, with suggestions 

as to wha.t deletions or inclusions shoiild he ma.de so as to assure com- 
plete conformity with 17. R. A. i^olicy. If the -committee or association 
desired to socnsor the schedule as revised, it did so in writing and 
again subsaitted the nro-oosed schedule .with its T/ritten assent thereto 
for consideration of the H.H.A. In addition, it was required that the 
Service Trades Section be furnished with, a list of the names and ad- 
dresses of those members of the trade known to the sponsoring group to 
be. dissenters to the proposed local schedule, so that such dissenting 
grouo could be com:junicated Yirith to ascertain their views concerning 
the tei-ms of such schedule. 

(4) If acceptable to the Administration the schedule of Pair 



(*) See Codes of Pair Competition as Approved, Government Printing 
Office, Volume XII page ^31. for copy of order. 

(**) See Codes of Fair Competition as Approved Government Printing 
Office, Volume XII page 679. 

(***.) See Appendix "F". See also, Codes of Fair Competition as ap- 
proved Governiaent printing Office Volume XII page 578. 

9759 



Trade Practices was returnecL to the sponsoring coiiiaittee or association, 
together vrith a form of Agreenent prepared by the Administration. Aftei 
signatiores and addresses of the signatories to the proposed Aq;reement 
of not less than Edfo by mimher of the members of the trade in that lo- 
cality, had teen obtained, the Agreement was forwarded to the Administrs 
tion for final approval, along with adequate proof that the signatures 
to the Agreement were authentic and in fact represented 85^ or more of 
the nemters of the given trade in that locality. 

(5) Upon approval by the Administrator of such an Agreement, no 
meraher of the trade in that locality vfas entitled to disr)lay the ao-oro- 
nrir.te II. H. A. insignia for such trade unless, in addition to the non- 
suspended provisions of the code, he co;aplied cilso with all the terms 
of such local Ae:reeraent(*). 

A trea'-cdown, by trades or industries, is c^iven herev;ith, purport- 
ing to shov; the nxi'nber of agreements submitted for aporoval, as v;ell'" 
as the number ap"groved: 

Name of Trade or Industries: 



Ko. 


No. 


ibmitted 


AiDTDroved 


ir)4 


4 


Hone 


Hone 


Hone 


Hone 


Hone 


Hone 


Hone 


Hone 


Hone 


Hone 


277 


None 


54 


2 


3 






Shce Rebuilding Trade 

Sowling &, Billiard Trade 

Advertising Display Installation Trade 

Advertising Distributing Trade 

Hotel Industry 

Lauaidry Trade 

Barber Sho-o Trade 

Cleaning and Dyeing Trade 

Motor Vehicle Storage & Parking Trade 

TOTALS ; 438 6(**) 

As is evident from the above figures, only six prorjosed local codes 
of Pair Trade practices received final approval of the Administration. 
This seems to have been attioutable almost entirely to the fact that 
sponsors of the agreements invariably insisted on some sort of price- 
fixing provisions being included in their proposed schedules of fair 
trade -practices. (*** ) The approval of such provisions would have been 
in direct conflict with the then existing policy of the Administration 



(*) In the Appendix hereto, will be found copies of : (a) form let- 
ters instructing members of the trade as to the procedure to 
be followed with respect to the submission of a proi:ioscd Agree- 
ment and Schedule of Pair Trade Prnctices (marked ApiDendix "PI";; 
(b) santple Porm of Petition and Agreement, with acconoanying 
affidavit attesting to the required number of signatories to the 
Agreement (marked Appendix "G" and "H"); and (c) forui letter 
used v/hen certain revisions were deemed necessary by T.'R.A. in 
the form and content of proposed schedules of Pair Trade Practi- 
ces (marked Appendix "I"). 

(**") Data obtained from files and records of Service Trades Section, NRA. 

(***; Bcsed on interviews with Col. G-. deP. Larner, Deputy Ad;ninistra- 
tor, and A. L. Olsen, Asst. Deputy, Service Trades Section, NEA. 
9759 



"15- 

regardinj price-fixing. 

Of the two agreenents aiinroved for the Cleaning and Dyeing Trade, 
one was for the arga aiiibracad by the City of Seattle, T<ashington, and 
signatories to the AgrpG:jent n-ojutered 352, constituting 95^ of the mem- 
ters of the trade in tnat locality; while the other was assented to hy 
forty 'iiembers of the trade in the locality embracing Rockland Count-/-, 
N.Y., who constituted 994 of the total --aembers of the trade in that lo- 
cality {*). 

As to the approved local codes for the Shoe Rebuilding Trade, the 
localities, number of signatories to the Agreement and the ^/ercentage 
of signatory- uc'.bers to the total iiembers of the trade in such locali- 
ties were, respectively, as follows (**"): 

(1) Washington, Indiana 6 10^"^ 

(2) Ironton and Coal Grove, Ohio 10 9l'«o 

(3) Pueblo, Colo. 25 SCii 

(4) Washington, D. C. 259 91.2^f. 

There was no administrative Tiachirer;"^ set nv to supervise opera- 
tion of aoproved "local codes" and no attennDt was made to enforce com- 
pliance with the provisions thereof, other then the threat of v/ithdra- 
wal cf the "Blue Eagle" for violations reoorted to and substantiated 
by the il.R.l. In accordance with II. R. A. Office Order ITo. 97 of Jxine 

28, 1934, "Removal of il.R.A. insignia for violation of the 

provisions of any such local codes, may be effected by State Compliance 
Directors subject to A-ooeal to I\[.R.A. Compliance Division. Such action 
must "be hased upon adequate evidence but removals must be prompt in all 
cases \7here satisfactory evidence is obtained " 

Sui-mjing up, it may safel'/- be said that results achieved by the 
prograja were disappointing in ch;-.racter. Not only were there but very 
few agree-ients anproved, but also, on the whole there was more or less 
wi6.esprea.d non-compliance with the provisions of those which received 
approval. There was probably only one outstanding exception according 
to the most reliable iniorm-aoion available. The Local Code of Pair 
Trade Practices out into effect pursuant to approval of agreement en- 
tered into by the members of the Cleaning and Dyeing Trade in Seattle, 
Washington, is said to have been strictly adliered to by the signatory 
parties (**=*=). 

As a further step tov/ards solution of the Service Trades problem, 
there was issued by the President on June 28, 1934, Executive Order 
Ko. 6756-A, (****%, ty the terms of which he offered to enter into an 



(*). See A-DTjendix "J". 
(**). See Aopendir. "K". 



{***). Information obtained from former officials of Service Trades 
Section. 
(****). A cojy of this Order will be found in Codes of Fair Conroetition, 
as approved, Government printing Office, Vol. XII, page 615. 



9759 



agreement with the members of uncodified Service Trades, 

" Wliereunder any such member displaying appro- 
priate 'S.R.A. insignia shall evidence his agreement to com-oly 
Vfith the standards of labor approved by the Administrator, on the 
condition, however, that in any locality in which eighty-five per- 
cent (85^) of the members of any such designated trade shall pro- 
pose to agree with me to abide by any local code of fair trade 
practices suggested by them for that locality, after approval of 
such local code Iiy the Aduiinistratvir, no member of such trade in 
such locality shall be entitled to display su.ch K.3.A. insignia, 
unless, in addition to the provisions of the said standards of la- 
bor, he is conplvin:^ with all terras of such local code." 

It will be roted that the above Executive Order applied only to 
such service trades as had not previously been brought under a code, 
as distiiguished from the May 26th Order (Ko. 6723), which related to 
service trades for which codes ha,d already been approved. 

A:nong the still uncodified service trades which were affected b-^'- 
the Order in question were: the Beauty Sho^i Trade, the Linen Sunply 
Trade, Automobile Laundry Trade, Retail Automotive Maintenance Garage 
Traxle, the A"oartment House Industry, Tourist Lodge and Motor Court 
Trade, Hug Cleaning Trade, Tourist and Travel Agency Trade, Drive-It- 
Yourself Industry, and the Locksmith Trade. (*'). 

So far as has been learned, there were no agreements formulated 
purusant to the President's Order of June 28th. 

II. tEPJIITOHIAL A&SEEIIIHTS. 

Technically, an aTj"oroved mainland code for any given industry or 
trade covered such industries or trades in Hawaii, Puerto Rico and Alas- 
ka if its terms (a) included no statement as to the extent of its a-o- 
plication; or (b) did not define the area of its application to exclude 
any or all of the Territories. Recognition of the fact that economic 
conditions prevalent in the Territories necessitated special treatment 
of the problems incident to industrial regulation led to provision be- 
ing made for the accomolishment of codification in each territory by 
either of the following alternative methods: 

(1) Amendment to mainland codes, in their application to the Ter- 
ritory. 

(2) Separate codes with exemption from any applicable mainla.nd 
code. 

(3) Conditional exemption from any applicable mainland code. 

(4) Territorial agreements with exemption from any apiDlicable 
mainland code.(**). 

Pailm-e to take any of the steos above outlined, left industries 



(*) See ■j.:.H.A. Press Release :'o. 6138 of June 29, 1934. 
(**) See H.R.A. Office Manual, II - 4000 to 4099 - Territories. 



9759 



or trades in the territories sabject to the 'orovisions of applicable 
mainland, codes. 

The President, by E^:ec-il;ive Orcor No. 6750-4 issued on June 27, 
1934, (*) delegated to Lie ILS.A. Administrator the loower to enter in- 
to agreements, pm-snAnt to Section 4(a) of the II. I. a. A., "with persons 
engaged in a trade or Industry in the Ter: iti^.ry cf Puerto Rico, the 
Territorry of Hawaii, or the Territory of Alaska, if in his judgment such 
agreements will aid in effectuating the policy of said title (l) with 
respect to transactions in or affecting interstate or foreign comiiierce 
and will be consistent with the renuireinents of clause (2) of subsec- 
tion (a) of Section 5 of said Act." 

On July 2, 1934, Administrative Order llo. X-oO was issued, which 
among other things made iDrovision for "Adi.iinistrator ' s Territorial Agree- 
ments." paragraph (l) thereof directed that tre.des and industries in 
Puerto Rico and Hawaii he exempted until September 1, 1934, from codes 
approved orior to the date of the order and from codes thereafter a.p- 
proved for a period of six vireeks following the dates of such anproval. 
Pursuant to paragraph (5) of the Scime order, Ecouty Administrators for 
the two territories v;-ere authorized to ma':e the signing of and com- 
pliance with a,n Adsninistrator' s Teriitcrial Gcovieration Agreement a con- 
dition precedent to the continuance of the .exeraotion provided for in 
the a.forementioned paragraph (l); and further, such exemption was to 
remain continuously in effect as to those entering into and com-:)lying 
with the Agreement so long as the Agreement remained in effect. Sig- 
natories to the Agreement were bound by the nrovisions thereof until 
the date of its expiration, unless prior to such date they became suh- 
ject to an approved code(**). 

It will he noted that the above Order (X-60) did not apply to 
Alaska and that only Hawaii and Puerto Rico were affected thereby. 
This V7as due to the fact that conditions existing in Alaska were found 
to differ materially f-ora the other two territories, in that prevail- 
ing wage rates there were invariably higher than the minimums prescribed 
by mLanls,nd codes. (**=*') . 



(*) See Coder, of Fair ComiDetition as Approved Government Printing 
Office, Volume XII pa,ge 612. 

(**) See Codes of Fo.ir Comoetition as Aoioroved, Government Printing 
Office Volume XII page 687. 

***) Brsed on information ootained from P. J. Duff icy, former Asst. 
Deputy, Division #8, N.R.a. 



9759 



-18- 

In accordance with Office Order }Jo. 1"2 of July 14, 1934, (*) afpree- 
nents entered ii.to by trt-ide or industry members in Hawaii and Puerto 
Rico pursri.a:it to Administrative Order X-60 were to be so framed as to be 
suitable generally to the trades or industries in the territories; and 
were to include "orovisions for the establishment of minimum wages and 
maxiraujn hours in addition to the provisions made mandatory by Sections 
7(a) and lo(b) ef the Act. Under the same order, De-outy Administrators 
were to subuit for the Administrator's approval, forms of agreement to 
be enter?d into hy parties in the territories in question. Upon appro- 
val of a form of agreement for a particular Territory, the DeiDuty Ad- 
ministrator was then to determine the trades or industries to which it 
was to be available and thereafter undertake to have such agreement 
signed and ccmolied witn by all members of such designated trades and 
industries in such territory. 

One form of Territorial Coooeration Agreement was aoDroved by the 
Administrator in his Order llo . X-80 of Augiist 27, 1954. (**) 

No agreements were entered into by me-abers of trodes or industries 
in Puerto Hico. Apparently, the 'J.1..A. Dojuty Administrator for that 
Territory raoxle no effort to formulate such a.greementr, on the theory 
that they would accom-olish little or nothing of consequence there in 
furthering IT.H.A. objective? .(***) . 

Pending action on their ■oro-oosed se-oarate codes, two industries 
in Hawaii, through the Deputy Administrator for that Teriitory submit- 
ted agreoiients for ap-oroval, namely, the Hotel Restaurant industry and 
the ViTine, Brewing and Distilled Snirits Industry, Ac to the former, it 
was not drafted in accordance with the approved form and contained a 
provision which obviated the -oossibility of its receiving final approv- 
al. With respect to the other, ('Jine, Brewing & Distilled Soirits) 
confusion and controversy as to v/nether jurisdiction over approval of 
the agreement was vested in the Federal Alcohol Administration or the 
K.H.A. brought about such an impasse as to preclude fina.1 approval. (****" 

Although, as stated above, neither of the two territorial agree- 
ments which v;ere formulated were legally existent by reason of lack of 
approval, thej?- nevertheless were actually and for all practical puttjo- 
ses, in force and effect. Signatories thereto were never officially 
advised as tc the status of the agreements and generally were not cog- 
nizant of the f.:',ct that they were not bound by the provisions thereof. 



(*) A cooy of this Order is included in the Appendix and marked 
Appendix "L" . . 

(**) See Codes of Fair Coiapatition as Approved, Government Printing 
Office Voluiae XVI page 522. 

{***) Based on review of files of Division 8, M.R.A,, and interview 
with F. J. Dufficy, former Asst. Deputy Administrator, Div. 8. 



(****) Same as immediately preceding footnote. 



9759 



A separate studv, having for its subject, "Territorial Codes and 
Agreements" is teing made ard the report Torsuant thereto should em- 
body a more detailed account of TeiTitorial Agreements than has "been 
here attenioted. (*) . 

III. PHISOii COIPaCT. 

A "Co'-ipact of Fair Comi.etition for the Prison Industries of the 
United States of America," (**), effective as of January 1, 1934, pur- 
porting to l>e under Section 4(a) of the Act, and entered into on be- 
half of twenty-eight States by the Governors or Prison executives there- 
in, V7as approved by tha President on Aoril 19, 1934. (***). The Exe- 
cutive Order of a;oproval delegated to the II.R.A. Adninistrator, the po- 
wer, authority and fmictions vested in the President by the Compact, and 
also appointed three members of the "Prison Labor Authority" to repre- 
sent labor, industry and consumers. 

The twenty-eight States who v,'ere signatories to the Com-oact origi- 
nally were: 

Alabajia, Connecticixt, Delaware, Georgia, Illinois, Indiana, 
Kentucky, Louisiana, Ivlaine, jlaryland, .Massachusetts, Michigan, 
Minnesota, :Misso-ari, HeVraska', IleW Hampshire, New- York, North 
Dalcota, Oklahoma, Pennsylvania, Rhode Island,. ■ South Carolina, 
South nakota, Tennessee, Vermont, "i7est Virginia, Wisconsin, and 
Wyoming. 

Subsequent to the president's aroroval thereof, the Governors or 
prison executives of the States of Iowa, Colorado and Florida, as well 
as those of the Depa-rtment of Justice and the District of Columbia, 
signed the Cou-Dact, thus increasing the total of signatories to thirty- 
three. 

The Administrator's letter of April 18, 19S4, to the president, 
transmitting the Com-oact ani recomnending its approval, gives a resu- 
me of its natiire and p;rrpos&3. Briefly, the intent and purpose of the 
Co:n-oact majr be plated to have been the establishment and maintenance 
of fair ccn-|Detition between products of private domestic industry and 
those of prison industry sold in the open market. 

Products mined, manufactured, produced or distributed by prison 
labor in signatory sta.tes for other than State use, were covered by 
the Coapr.ct. It provided also: (a) for limitation of hours of labor 



(*) In process of development by F. J. Duff icy, N.R.A. Administra- 
tion Studies, Division of Reviev.', II.R.A. 

(**) See Codes of Fair Competition as Approved, Government Printing 
Office Volume IX page 731. 

(***) Executive Order Ho, 6684-A, Codes of Fair Competition as Ap- 
proved, Governi.ient Printing Office Volume IX page 731. 



9759 



in prison industries to not more than those prescribed in the appli- 
cable code, and in no case could any inmate be required or permitted 
to work more than forty hours in any one week; (b) for limitation of 
hours of operation of productive machinery to not more than those per- 
mitted in the code of the competing private industry; (c) that persons 
under sixteen years of age could not be employed in any -orison industry 
and persons under eighteen were not to be employed in o-oerations or 
occupations hazardotis in nature or dangerous to health; (d) that the 
sale of prison products, by the prison or through a contractor, was 
not to be at prices lower than the fair current prices prevailing in 
the. market in which the product is customarily sold; and (e) that con- 
tracts for the labor of prisoners must insure a return from the con- 
tractor of an amount equal in value to the cost per vuiit of product 
for labor and overhead necessarily paid in competing domestic industry 
on the coiparable product. 

In addition to the above, the Compact made provision for the es- 
tablishment of a Prison Labor Authority to administer the Compact. Its 
principal powers and duties were to hear and adjust the complaints of 
affected parties; to decermine, after receipt of complaint, the fair 
prevailing market price with which prison products were to comply and 
also the fair charge for contract prison labor; to confer with the 
Code Authority of the industry affected before making such determina- 
tions; a-nd to require diversification of the output of prison indus- 
tries in fair proportion to the industries affected, and prohibit the 
expansion of any existing prison industry which bears a disproportio- 
nate shci.re cf cornetition. 

The several Code Authorities were given certain rights of coope- 
ration lander the Compact, respecting complaints against unfair com- 
petition, arranging the basis of competition and securing observance 
of the CcLroact. So that they might be fully informed as to such rights, 
"Code Authoi'r-ity Field Letter llo. 5" was issued by the Administration 
on Hay 26, 1934, accompanying which was "Instructions to Complainants 
Against Unfair Prison Competition." Copies of this letter and the 
accompanying instructions T/ill be found in the Appendix to this re- 
port and reference is made thereto for details as to the policy and 
procedure adopted to handle complaints tinder and otherwise administer 
the Compact. (=*=). 

Administrative Order V-2, issued on May 3, 1934, (**) authorized 
the use of il.S.A. labels on all goods made in v/hole or in part in the 
"Penal or Correctional Institutions" of any State signatory to the 
Comoact, whenever similar goods made by industries covered by Codes of 
Fair Competition were required to bear K.R.A. labels. Power to issue 
such labels was vested in the Prison Labor Authority and applications 
therefor had to be accompanied by a certificate of Compliance with the 
terms of the Prison Compact. 



(*) See Ar-jeiidices ";.:" and "II", 
(**) Se3 Appendix "0". 



9759 



Shortly after issuance of the above order, the Cotton Garment 
Code Authority pretested the use of any iJ.R.A. insignia on orison made 
goods if the insignia ocre an^' form of the N.E.A. Blue Eagle for the 
reason that prodTicts of the Cotton Gaxiaent Industry bore a Blue Eagle 
insignia and manufacturers feared their "oroduct would "be indistinguish- 
able from oroducts of prison la.bor.(*"). petition for a permanent stay 
of Administrative OrC.er V-2 was filed, pursuant to which a Toublic hear- 
ing to determine the issues involved was held on May 28, 1934. That 
hearing resulted in the issuance of Ad'ainistrative Order V-3, dated 
June 12, 1934 (**), which amended prior Order V-2, hut at the same time 
denied the Cotton Garneut Code Authority' s application for a permanent 
stay thereof. Under the amending order authority to use a Blue Eagle 
insignia on prison goods made under the Comoact was continued, but such 
insignia was modified so as to be distinctive from that of the Cotton 
Garment Industry. (**^) . 

The operation of the Prison Cojimact was beset with many difficul- 
ties, concerning which an extended discussion is more properly within 
the purview of a separate study now in process of development which 
has for its aim a history of prison competition and the relation there- 
to of the Prison Com-,e.ct. (**^'<*). it is deemed sufficient to state 
here that it was conceived as a solution of the vexing prison labor 
problem, and v/hile it may net have accomplished that purpose, it was 
nevertheless a constructive step in that direction. From the "beginning 
two orincioal sources of vigorous and determined opposition were the 
Cotton Germ.ent Industry and organized labor. Specifically for the pur- 
pose of of investigating and reporting upon (a) the difficulties in 
the Cotton Garment Industry created by prison competition and (b) the 
cora-olaants against the operation of the Prison Compact, the President, 



(*) See copy of letter of December 3, 1954, from L. M. Collins, 
Acting Division Administrator, Division No. 8, to Blackwell 
Smith, Acting Genei'al Counsel, N.R.A. in the Appendix hereto 
and narked Appendix 'P" . - See also N.H.A. Press Release IIo. 
5'.)81 of May 16, 1934. 

(**) S'-e Ap-ocndix "Q". 

(***) See N.R.A. Press Release No. 5769 of June 14, 1934, 

(****) "The Prison Laoor Pro"blera under N.R.A. Administration and the 
Prison Compact." - a Study, Administration Studies, of the 
Division of Review, "by V. J. Clarke. 



9759 



ty Executive Order ¥.0. 118-135, of October 12, 1934, apnointed a com- 
mittee. A copy of the findings and recommendations cf this committee 
will be found in the Appendix to this Report. 

Another interesting aspect which it is not believed amiss to touch 
upon concerns the legal validity of the Prison Compact under the Na- 
tional Industrial Hecovery Act. Although pv.rporting to have its legal 
foundation in Section 4(a) Of the Act, the question as to whether under 
that or any other section of the Act such a Compact could be 'oromulga^ 
ted was a subject of study by the Legal Division of N.R.A. Conclusions 
reached were that the Prison Com-oact as a legal instr-ument was invalid 
and unenforceable in the co-arts and that it represented merely a decla- 
ration of voluntary cooperation by the State -orisons with the Federal 
Government's Hecovery Program. 

IV. AGHEE.lBHT AiviOi'IG TlilS i^iAlfinTACrURBRS Ai® DISTRIBUTORS. 

A volu:o.tary agreement under Section 4(a) of N.I.R.A. was entered 
into by reoresentatives of manufacturers and distributors of rubber 
tires on March 30, 1934. It was designed to effect an immediate cessa- 
tion of the destructive price cutting Virhich had been prevailing in the 
retail tire trade in all parts of the country since early in January, 
1934. A Code of Fair Competition for the Retail Tire and Battery Trade 
had been -oroposed, 'thciip'a had not, up to the date of the aforementioned 
Agreement, received final ap-oroval. 

As a consequence of innui-nerable letters and telegrams received by 
W.R.A., requesting that some immediate action be taken to curb the na- 
tion-wid.e price wars among tire retailers, the Code Authority of the 
Tire iianufact-uring Industry, certain la-rge tire manufacturers, and re- 
Toresentatives of the large orivate brand distributors of tires were 
summoned to ¥ashington on March 30, 1934, for a conference with N.R.A. 
re-oresentatives. This culminated in the negotiation of an agreement 
for a -oeriod of forty days from April 3, 1934, pendi'ng aporOval of a 
code for the retail tire and battery trade. 

The outstanding points in the Agreement were as follows: 

1. A forty day truce effective Afjril 3, 1934. 

2. Establishment of temporary differentials below the Goodyear 

lists of February 9, 1934, for Sears, Roebuck and Comtiany, Montgomery, 
lard Co., Atlas Supply Co. and Western Auto Supply Company, 

3. Establishment cf fixed trade-in allowances to prevent their 
use for further price cutting. 

4. The discontinuance of all soecial rebates by manufacturers to 
dealers, which had been extended to enable dealers to meet de- 
structive price cutting. 

5. The discontinuance of all cut-price advertising. 

The Agreement was transmitted for approval of the President on 
April 14, 3.934, (•") and his approval thereof was manifested by 

"(T) Copies of the Deputy's report of findings and recommendations to 
N.R.A. Administrator Johnson and the latter' s letter of transmit- 
tal of the Agreement to the President for final aoproval, as well 
as a copv of the Agreement itself, will be found in the Appendix, 

bei.-ig resoectivelv, AiD-oendices "T". 
9759 



Executive Order Ho. 6584-B of AiDril 19, 1934 (*). 

It is apparent from inquiry made in V7ell informed quarters that 
the Agre&nent, generally -spe'l.ing, failed to accomplish the ourpose 
for v,'hich it was intended (f*). • 

V. CAPTIVS LilllSS. AGEEZi.iEi.iT.. ■ - .. 

Pursuant to Section 4(a) of the Act, an agreement was entered into 
"between the president and meraters of the Iron and Steel industry or 
their suhsidiary or affiliated comianies, operating Bit^oininoiis Coal 
Mines. This agreement was known as the "Captive I/iines Agreement" and 
was approved "by the president on Ser^tember 29, 1S33 (***■). jt marked 
the culmination of a protracted controversy with respect to the rela- 
tion and application of the labor orovisions of the Bituminous Coal 
Cede to the so-called Captive Mines - that is, mines in the Bituminous 
Coal fields T/hich were owned and ooerated hj steel and iron mills or 
their su'bsidiaries, the entire outout of which was consiomed "by the pa- 
rent company. 

The Bitu'iinous Coal Industry was highly unionized and when the 
code for that industry was adooted and aooroved, there was inconoora- 
ted therein "basic wage schedules for each District in the entire in- 
dustry and for practically all of fhe Districts the .wage scales had 
"b^en 'fixed in accordance with union wage agreements negotiated "by the 
Commercial IJine Operators and the United I.Iine Workers of America; and 
further, provision was made, for revision "by lautual determination of 
the operators and the Union of fne "basic ^.^orking conditions original- 
ly prescri'oed (****). 

The Captive liine o^rners 'iaad consistently refused to recognize and '. 
to bargain collect ivdly with the Union as the representative of their 
employees, and had insisted on dealing with their em-oloyees either di- 
rectly or through "Oompa,ny Unions. " They took the further position 
that inasmuch as they were not couoetitors of tne coraicrcial mines in 
the coal markets, they .did not come within the definition of mem"bers ' 
of the Bit-axiinous -Coal Industry, and should not be governed by the pro- '.. 
visions of that code. . i 

On the other hand, the United Mine Workers and commercial operators 
who had subscri'oed to wag© co ^tracts, insisted upon a parity of wage 
schedules as "between captive and cornvnercial mines in .the resuective 



(*) .See Codes of;.Fa:ii: Coi^petitiyn- •£!<&. Approve.d Government Printing 
. / ^ ,;off ice Volume. IX page 882.;; ■' ■ ■. i;.; .■ .; .' ' 

{**-) Based on interview with A. L. Kre'ss, ' former Denuty Ad;ainistrator, 
, ...aetailTi^re ,& Battery Code. 

(****) ■_^J(6r,'a:^ further discussion of the, Bit"aiAi,?ious .Coal, Code and the wage 
■a.;";ree;::ents which were suoolemental thereto, see .Chapter "VII of 
this reoort. 

( ***) See Appendix ''U" for copy of Agreement. 



9759 



districts in which captive mines v/ere located (*). 

The signatories to the Captive Mines Agreement agreed with the 
President and "between and among each other that; 

" "Each emoloyer in the oparation of any bituminous coal mine 
opero.ted hy it will comply with the maximum hours of labor and 
minimum rates of pay which are or shall be prescribed under or 
pursuant to the coal cole for the district in which such mine is 
located so long as the coal code shall remain in effect. " 

Upon approving the Agreement, the President added the following 
paragraph thereto: 

"'Approved: With the understanding that under this agreement 
hours, wages and working conditions throu;5hout these mines will 
be made as favorab].e to the employees as those prevailing in the 
district in which such mines are located. ' 

(signed) Franklin D. Roosevelt." 

Subsequent to its aoproval, comiDlications arose as the result of 
conflicting interoretations being olaced on the terras of the Agreement 
by the Ccptive Mine ovmers and the Union. The former contended that the 
Agreement did not necessarily i:nply full recognition of the United Mine 
Workers Union; and that establishment of the "check-off" system of having 
employers deduct union dues from the pay checks of emioloyees, did not 
come under the head of "working conditions" and hence was not covered 
by the Agreement. The Union took the opnosite viewpoint and maintained 
further that the Caotive Mine owners' inter-oretation was at variance 
not only with the approval paragraijh of the President and the position 
taken by General Johnson, K.R.A. Administrator, in two telegrams sent 
to the Vice-President of the Union following the ariproval of the Agree- 
ment, but was also at variance with the letter sent "by the President of 
one of the signatory companies to the ■ Vice-President of the Union, con- 
firming the Agreement. (**). Meanwhile, a large number of miners em- 
ployed in the Captive Mines in Western and SouthT^estern Pennsylvania, 
who had gone out on strike immediately preceding the formulation of 
the Ca'otive Mines Agreement, now refused to resume work unless and un- 
til the enoloyers accorded the Union comolete recognition and esta- '-^ 
blished the "check-off system. 

At the conclusion of a conference held on October 7, 1933, bet- 
ween the President, 11. 2. A. Administrator Johnson and representatives of 



(*) Data obtained from review of files of the Coal Section and from 
interviews v?ith B. T. Ansell, former Code Legal Adviser, Sherman 
Burt, former Aide, Coal Section, and Vokumes 44 and 45 of United 
Mine Workers Journal. 

(**) Copies of the telegrams and letter referred to will be found in 
the Appendix (Appendices "V" and "W" .) 



the captive nine ounors, an an.noimcer.ent '^-^s issued from the ¥hite 
House '-rhich '-lade cleai- certain fundcaientals in regard to the operation 
of captive nines. Para.Traphs 1, 2, 3, and 7 of that annoionceraent are 

herewith quoted: 

"1. The captive mines cone under the coal code already 
signed hj the comraercial mine o-ners. except as to "orovi- 
sions of said code relating to the sale of coal. 

"2. The TTOrkers in everj^ captive nine caii choose their 
ora representp.tives for the p^ai-'TOse of collective ha.r- 
gaining. 

"5. Failing in agreement on any point after such collec- 
tive hargaining, the president rill pa.ss on the questions 
involved, and 'jill in nalcing decisions use the principle 
that captive raines must operate under conditions of TTOrl: 
suhstantially the sane in the "broadest sense as those 
xrhich obtain in the connorcial i.iines, which represent 90 
per cent of coal production." 



"7, The OT/ners have assured the President that they will 
enter into negotia.tions at once in good faith with repre- 
sentatives of their workers." (*) 

Pollowing the ahove annoiuicenent , the Union first attempted to ne- 
gotiate a wage contract covering captive nines of the 11. C. Prick Co., 
suhsiciary of the U. S. Steel CoriDOration, in Sovithwest Pennsylvania 
where the strike was in progress, claining that the nine workers in 
such nines had previously oy resolution duly adopted, authorized the 
Union to re-oresent the': in collective bargaining negotiations (**). 
These negotiations failed to "oroduce an agreenent, the strike continued 
and the entire natter was referred to the President for his final action. 
The President sent letters to the heads of the varioiis captive nine 
conpanies, requesting then to again confer \7ith hin on October 30, 1933. 

An aiiiiccble settlenent resulted fron that conference. It was 
agreed between the Presicent pjid the captive nine owners on the one 
hand and the president and the United Iline Workers on the other, that 
elections were to be held at the twenty-nine coptive raines in Pennsyl- 
vania in ITovenber, 1933, for tlie purpose of affording the employees of 
those :.:ines an opportimlty to choose their collective bargaining repre- 
sentatives, with whon the operators were to negotiate to a conclusion 
a forn of wage agreenent to contain terns and conditions at least as 

(*) See Appendix "X" for copy of Annoimcenent. 

(**) See Vol. 44, United Line TJoriiers Journal, IJo. 20, p. 3, for 
text of letter written by Phillip i.;urray, Vice-Pres. , U.M.W. 
of A., to Thonas hoses, President of H. C. Frick Co. 



9759 



as favorable as "The Appalachian .Agreenent. " (*)- (The latter agreement 
will be fullj'- discussed in a subseqiient chapter of this report (**). 
The elections vere to be held -under the sixpervision of the national 
Labor Board of HPA and if after such elections, 

"ilo agreement "ith the majority representatives is 
reached in ten daj^s, the controversy \7ill be immediate- 
ly'- submitted bj^ both parties to the Fational Labor Board 
for decision and both parties agree to abide by the 
decision." (***) 

It '.7as also agreed that the Appalachian Agreement Tould serve as 
the basic vorking agreement for all captive mines including besides 
Pennsj^lvania, those in Uestern Kentucky, VJest Virginia, Tennessee and 
UtaJi. (****) 

Siibsequently, individual contracts covering the captive mines in 
various districts iieve made bet'-'een the operators thereof and the 
United kijie Workers, and except for some slight changes necessitated 
by local conditions existing in pnd aound these captive mines, the con- 
tracts em.bodied practically all of the provisions of the regular "Dis- 
trict Agreements" beti-feen the Commercial Operators and the Union (*****), 

The final result of the elections held in the tventy-nine captive 
mines in Pennsylva^iia '..^as that employees in some twenty of such mines, 
elected officials oi the United I.iine Uorkers as their bargaining 
representatives (******). 



) See Volume 4^i, U.k.IT. Journal. 

*) See Chapter VII, Sub-Division II- The Appalachian Agreement. 

**) See NEA Press Release of Oct. 31 , 193.3, aiid also Vol. 45, 
U.l.¥. Journal, No. 2, p. 4. 

***) See U. Li. W. Journal, Vol. 44, Uo . 21, p. 5. 

****) See "¥age Agreements- 1S34, " a volume published by U. I.. W. of 
A.; see also Chapter 711, Section II of this report for a 
discussion of "District Agreements." 

*****) Including contested election at one of H. C. Pricl: Co. 

mines which vras heard by National Labor Board and -ultimate- 
ly decided in favor of tlie U. i:. 17. of A. - See NRA Press 
Release No. 2826 of Jan. 19, 1934, appended hereto as 
Appendix "Y". 



975S 



VI. iZSCZLLAlTOUS. 

The Prec-idont, o" T-ecntive Orcer aiid in iw.rsuance of authority 
vested in hir. hy Secjtion 4 (p.) of tha Act, entered into agreements 
with several Trade Asicciations, -.'hereby such Associations, on behalf 
of their neMhershio, agreed cither: • (a) to con\)ly i^itli a Code of Fair 
Coupetition, or certain provisions thereof, '-.hich had been approved 
for a related industry, pendin.^' action on their ovn codo; or (b) to 
be bo-und by certain provisions of proposed codes subnitted for their 
own industry,.', which had not received final approval. 

Executive Orders puttin,'; into efJ'ect soi.ie such agreements are 
contained in the A'opendix to this report, as is also iI3A Press B.elease 
Ho. 119 of July 28, 19o3, to ^hich the reader n?y refer for further 
details (*). 

Executive Order ilo. 6443 of ITovenber 2^, 1233, delegated to the 
ITPA Adxiinistrator the po-.'er toUnaice such modifications of, and grant 
such exenptions to, and exeinptions from" agree:>ents entered into by 
the President rith "members of certain trodes or industries providiu;'^ 
that, u-non specified conditions, the3'- should operate vjider, ejid be 
boijnd by, certain provisions of certain codes of fair competition 
approved, or subnitted for approval, imdcr Title I of said Act."- A 
copy of this Executive Order r-ill also be found in the Appendix 
hereto (**). 



(*) See Codes of Fair CoLr:)etition as Approved, 'Joverninent 

Printing Office, Voluie 1, pages 19-20-716-717-123-722-725-713. 

(**) See AiDnrovcd Codes of Pair Competition as Arjproved, Government 
Printing Office Volu:.ie III, -oago 637. 



975S 



CHAPTER V. 

El'JORCEIIElIT OF 4(a) AGREEJS'JTS 

In this chaoter, coi'.si deration will be ^ivcn to; (l) The means 
provided by the Heccver;/ Act for the enforeement of Ae-reements entered 
into mrsuant to Section 4(a) The aethods which were adopted b,y ERA. for 
their enforcement; (3) Jn.diciel enf orcemer.t of A^,reements by -private 
parties; and (4) Lc^sl Jlelationshin of sii^natories to the P.R.A. to (a) 
the President; (b) each ot'ier, and (c) third mrties. 

Fo effort v/ill be made to "orescnt a survey of such as-^ects as 
concern the or^aiiisation and "irocedurr- established to deal v/ith the 
problems incident to com.'liance and enforcement. 

I. fcEAiMS 0? Ei^FORCEt.El'T PROVIDED 3Y TI3 ACT. 

Agreements of a pui'^ly voluntary nature were authorized and en- 
co-oraged by Section 4(a) of IM.R.A. Of the several sections of the 
Act which prescribed penalties for violations thereunder, none a-:)plied 
to a,£^rcements under 4(a) and no direct means of otherwise enforcine, 
compliance with the -revisions of such ai^reements were specified. This 
leads naturally to the assumption that enforcement of these voluntary 
a^,reeraents was to be left to th'^ ordinary remedies of contract law. 
Prior to enactment of th'^ law, voluntary ai^-reements between members of 
industry, if in accord v'iti-i established -principles of contract law and 
not violative of anti-tr/.st laws or other existing statutes v/ere valid 
and enforceable by action for dsTnai;^es for breach of the Agreement. 
Section 5 of H.I.R.A. cxerr/Tted any at,Teement ap-iroved under the Act 
and aiTy action comv^lying with the -provisions thereof from the anti-trust 
laws. 

Although deficient with resnect to "orovidin;:, for direct means 
of enforcing 4(a) agreements, Sections 10(a) and 7(a) of the Act both 
afforded possibilities of bcint, directed to th;t nur-iosc. In fact both 
were brought into -ilay in the administration of the Act as foundations 
for indirect methods of com--)ellin,v com-oliancc v:ith Agreements, as will 
be ;i?ointcd out below. 

II. 1ETH0D3 OP S:TORCEiI,i'T ADOPTED 3Y PRA. 

A. BLUE EA-'rLE Ei u3LSi 

For the -lar-ose of bolsterin,:. the effectiveness of the President's 
Reermloymcnt Ai^reement, there came into existence an enforcement device 
not uic-ntioncd in the Act \7hich -iroved to be the -orincipal weapon relied 
upon to ")rocuro com'Dliance with voluntary agreements, and the use of which 
v/as later extended to enrploycrs in industries subject to apnrovgd Codes. 
This was the ITRA "badge of honor" popularly :-nown as the "Blue Eagle," 
which was dosi^.ned, a?; stated by General Hu^ih Johnson, former l^RA 
Administrator : 

"To raahe it Tossible for public o-iinion to support 
those who were coo-ieratin;^ to create employment and 
purchasinti power and to withhold support from those 

9759 



-29- 

¥/ho were not " (*) 

I.iCidentPl3-,y, it raav be i;itei-pf=tin^. to note that the emblem vas 
first issued ?.'ithout the sanction of £.iV' formal order or re;_,ulation. 

At its inc'^-'-tion, -rablic scntimen.t v/p.s ov-rivheliiiin jly in favor 
of the P.R.A. and for that jn?t.er, the entire ;"Z.-i. ■nro._a--m. ?or that 
reason the "iressure of ■oublic o^iinion v/as believed su.fficiont to induce 
voluntary com;oliance on the -lart of enroloyers T;ho had assented to the 
At^reement. The hi-^h :oitch of enthusiasm on the -'tart of the public in 
the bet,innin[^ with respect to the F.r'-.A. is besc indicated by this 
stateraent : 

"7nf crccrnent of the T'-li--. rfsteo. solel,/ on puhlic o-^inion. It 
was the ex lerience of the Com'Tlaints Section (of the Jlue Eagle 
Division), in Aujrst and Se;)temoer of 1333 consuiners were ardent 
in their desire to see thft the a,,reement was observed; they 
made inquiry on -ourchasini^ t,ooas and if suspicious that the 
establisinnent was no'c r.eo-oin^ faith, refused patrona^^e. It was 
apparent that the lyablic considered violation of the A.3rccraent 
a criiie o.nd that crirainal action should be ta';en vigorously 
ae;ainst en::)loyers in non-coiiipliancc. " (**• ) 

That no effort to coerce corp-iliance other than merely withdrawini]; 
the rifcht to display ohe Blue 2&^1r was contcm-olated in the bot^innin;^, 
is evident from the official instructions issued by ITRA on September 12, 
1933, to local Com-iliance Boards (xiRA Sullctin ^5), wherein the legal 
member of the joerd wps instructed to explain to alleged violators 
"that the President's Eeem-olovmcnt Agreement is not a statute to be 
enforced by la,v/, but a voluntary incividuel covenant." (**=') 

Sabscouc--it developments however, chiefly a wanin^ of public support 
and a corres-^ondin^ increase of non-com-Tliance on the -lart of signatories 
to the At^reement caused a ch;-n_^o in official attitude which was reflected 
"oy Executive Order No. 6337 of October 14, 193.''.. ■ That order was issued 
pursuant to authority of Section 10(a) of the Act and in effect, made 
the false disrAa,y of the 31u^ Ea^le or other insijnia of the !1EA pun- 
ishable "oY fines or ira-.risonuient or both (****), It did not purport to 
:irohioit violation of his e.^rcoment by ari em-iloyer, but did ^irohibit the 
use of any ¥^A. insignia by one who had not si^^ncd the agreement, or by 
one v.'hose ri:_,ht to use the emblem hrd been revoked. Referring to the 
Administrs-tior.' s abandonment to a lar <e degree of its dependence upon 



(*) The Blue la^lc - Prom Eg.^ to Earth," by C-cn. Hugh S. Johnson. 

(**) Sec "Conwients on the President's He-cmnloyment Agreement," June 
4, 1935, by J. E. Peebles, attached hcrto as Ap:-)ondi:-. "3". 

(***) See pa^^e 4, y^ar. 5(b) of Bulletin ^,-5, which is in the A^opendix 

to this report, marked A 3ondix "Ak". 

(****) See A-T)endix "3B". 



9759 



voliuitar:/ com;iliance a.s evidenced hy the Order atove referred to, the 
follov.in^, rer.ic.r'rs v.-hich are quooed froiii a treatise on ILIA are deeraed 
ap :)ropriate: 

"This shift i: the attitude of the Eecovery Administrrtion 
tov/e.rd e.if orceraent of chc Re-eiT-iloyraent Agreement was oerhajTS a 
natural develo-T,,;c-.t . Althou^ch the p.^reement v/as presuraablj'- tenro- 
orary in ch;iractcr, originally ex drin_; on December 51, 1933, but 

subsequentl-' extended the Administration no doubt felt 

that it could not risl: the develo- ime'".t of vrides-iread non-compli- 
ance ;/ith the ajreeraent, since such non-com-iliance mi^-,ht easily 
become thr la.ticrn for public rr-s^onse to the more "oermanent 
'codes of fair competition." (*) 

The Order r.-ferred to was su-T-)lcme:vGed by "Rules and Regulations 
Concerning, the Dis ilr,-- of KIA Smblem," issued by the TEA Administrator 
on October 17, 195o (**). 

B, T HE JSA Lxi3SL . 

Another enforcement device not irovided for in the Act v;hich 
Y/as utilized effeccivcly vas the iJEA label. It uns closely related to 
and in fact a furtherance of the idea of the j31ue Eat^le emblem. In 
brief, it W3.s a method of enforcement vhereby ^oods manufactured or 
produced under certcin codes or a,^:reements were required to bear an 
T.Hh. label, the Use of Tdiich war. restricted to those v;ho were in full 
coi.Toliancc ^'ith the -irovisions of such codes or a.ireements. 

An idea of its 'clearly recoi^nised utility as an effective en- 
forcement device can. be gained from the fMCt that fifty-five (55) 
a.-o )roved codes contained label --jrovisions, of which nuiabcr forty-three 
(4o) v;cre classed s,s mandatory, four(4) -lermissive and eijht (8) 
coo-jert tivc; (*=^*) and further, the Retail Code expressly -prohibited 
the sale, purcliase or exchange of any mercha.ndise manufactured under a 
Code containin^; a nand£.tory la,bel "orovision unless the merchandise bore 
such label. Thus, retailers cn.iae to insist upon the presence of such 
laocl on i2~oods ;ourchased by them. 

As related above, the Prison Labor Authority v/a.s vested with 
the pov/er to issue to and '.■ithdraw from those States and prison con- 
tro,ctors operating unaer the Prison Compact, an ITRA label for use on 
garments manufactured in the -jrisons. Garment manufacturers in privs-te 
industries o^Tor; ted under Codes liavin^ mandatory label -orovisions. 
Hence, it is readily conceivable that -irison-made goods not bearing an 
ITRA label would, by the terms of the Retail Code, be barred to a con- 
siderable extent at lo:.si;, from the chan.ncls of retail trade. 



(*) "The A:3C of The .'RA" , by Dearin,^, et al . , pa^je 76. 

(**) See Codes of Ptir Joupetition as ap -'roved, Government Printing 

office, Voluine XXII - -^1-1^0 555. 
(***) From statisoics )rc':)ared by Rcscr.rch a.id PlajUiin^, Divisio'n, IIRA 



-31- 

The use of KRA labels v.';- s also authorized for those members of 
trades or industries in Hav/aii faid Puerto llico who entered into and 
com--ilied wizh ^?erritorial A-irsemer.ts. Such authorization was tiven in 
Administre^tive Order Z-SO of J^ily ■?,, 19o4 (*), which was supplemented 
by Office Order "Jo. 103 of July 14, 1934 (**), containin_, rules and 
rBi^jUlations rel..tive to the teia-orary is^Uo^nce of laoels in the 
ierritories. 

G . GOVEENIISHT C O FTHAC?S . 

3y reason of L::ec-...tive Order I'o. 5?:46 of Auc_;ast 10, 1933, (***), 
the provisions of ¥/hich were later modified or rescinded hy Executive 
Order ]\io. 6646, issued hy the President on I'arch 14, 1934 (****), there 
came into e::istence another method eiffMloyed 'oy ¥Rk to compel compliance 
with either an aijn-ovcu Code or an a-reenent with the President under 
Section 4(a) of j.I.H.a. L"ecutive Order '.'o. 6646, relating to "Govern- 
ment Contracts and Cor.tracts Involving the Use of Government Funds" 
was not issued ;mrsuant to e.r)y grant of puthorit,- in the Hecovery Act, 
hut in the v'ords of the Order itself, its issuance hy the President was 
by virtue of the authority vested in hin as President of the United 
States. 

The Order in question made it mandatory that all bids for Federal 
public works contracts as well as bids for State public works contracts 
financed in whole or in ^art with Federal funds, be accomimnicd by a 
certificate from the bidder to the effect that he was comr)lying and would 
continue to com-ily with all of th'j provisions of the a^roroved code for 
his industry'- or if there was no ar^licable code a-iriroved, "then stating 
that as to such trade or industry he has become a r)arty to and is com- 
plyin_, with and rill continue to connly v:ith an aL,rcement with the 
President under Section 4(a) of the U.I. P.. A." Thus, even though the 
bidder was not subject to any Code or h'-id not assented to any agreement, 
he neverthless subjected himself to the terms and conditions of the 
P.P. A. or a^-orovcd P.H.A. substitutions pp'olicable to his trade or 
industry. A further requirement of the Order was that a:;y ^^encral con- 
tractor receiving an award, was to obtain a certificate of compliance 
of the scne nature- from sub-contractors furnishin^ ariy suoilics or 
materials for the performance of the contract. The order further pro- 
vided that : 



(*) Codes of Pair Co.inetition as a-p iroved, Government Printing Office 
Volu^ae XII -Pa^e 687. 

(**) See Appendix "CC" for co-)y of order. 

(***) See Appendix "DD" for co ly of Order. 

(****) Sec Aroendix "SE" for copy of Order. 



9759 



. r r « 

"2. Any -oerson irlsely certifj^in^^' rs to conr^li.'Mice p.s 
r,iores-.id who si;.omits eny s^ach -DroTjosal, bid, conti-a^ct, or 
sulDcontract , or r.cce-oos v.ixy -lurcl.p.se order, may be pTXiiisVied 
as provided in Section 10(a) of the National Industrial Re- 
cover;'- Act, by a fine of r.ot to exceed Five HfJiidred Dollars 
($500) or im-orisonrnent not to e;:ceed six months, or both, 
rjxd in event of raij^ such false certification by anj^ such 
person, any contract, si;bcontrr'Ct , or ■:^ui chase order to v/hich 
he is -Tarty secuied 'oy or in furtherance of ony such -iro- 
iDOSal or- bid may be cancelled oy the otner -)a,rty tuereto , 
and the unfinished --ortion thereof com^Tleted at the expense 
. of the person guilt-- of sxtch false certification raid his 
sureties, if any. 

"5. 'Jhenever a dis-^ute shpll arise between any agency 
of the United States and rny bidder, contractor, sup"olier, 
or otV.er person as to com-liance v.'ith any code of fair com- 
-letition or viith an a:;reement with the President as afore- 
said in connection v/ith any proposal, bid, contract, sub- 
contract, or purchase order mentioned herein, the Adminis- 
trator for Industrial P.ecoverj', or such agency a.s he shall 
designate, shall decide such dispute and, for tlie purposes 
of action uiider this Executive order, such decision shall 
be final rnd conclusive; but the deteiTnination of such agency 
of the United Str/c-r^s shall be effective for aJl ;TUi'poses 
pending such decision." 

Althoi\gh by the teras of th^ Order, a bid :ap'r havp 'oeeii rejected 
in t>.e first instance if ..ot a.ccom-opniad'by a ^certificate of com-)li?nce, 
it v;ill be noted from the a-'Ove quoted -provisions, that the bime for the 
application of the --le'.alty --rovided for c'id not .-'.rise until after a con- 
tract had been aw-rded and determin-'tion had been mrde that the contract- 
or v/a,s in f^-ct in violation of his code or agreement. When sxich a deter- 
mination Was reached, the offender was faced v/ith lossible criminal- rction 
for false certification and ■-'Iso cmcellablon of his contract or any 
unfinished portion tiiereof. 

Tne Govern. ;ent Contracts Section of the Com--liance Division v/as 
set u-^ to administer tne order, ^/hich subsequently became an a.utonomous 
unit of the IIRA, being designated as the "Crovernment Contracts Division." 

III. JUDICIAL EIIFORCEI.ffllTT BY PRIVATE PARTIES. 

A. COLLECTIVE BAF.GAIITIITG PROVISIONS OF SECTION 7(a). 

riie Act made no -irovision for tlie institution of judicial proceed- 
ings by • rivate -larties to comiiel com-iliance ■Ith either agreements or 
codes. However, Section 7(a) of the Act made it mandatory that each 
agreement contain the following conditions: 

"(l) Tnat em-:>loyees shall have the right to organize 
and bargain collectively t.^rough representatives of their 
ovTD. choosing, and sha,ll be free from the interference, 
restraint, or coercion of employers of labor, or their agents, 
in the designation of such re-iresentatives or in self- 

9757 



ori^anizatior. or in other concnrted activities for the 
■oivriose of collective bargainin^^ or other mutual aid 
or protection; {?.) that no em-oioyee and no one seekine, 
employ iient shr-.H he required as a condition of em- 
pl07i.ient to join cny cormany union or to refrs.in from 
joinir,,, or^anizin/5, or assistii: _ a labor organization 
of his ovm choosin,,;; " 

As has been previously --ointed out in this report (*), Section 
7(a) was incorporated by reference in the President's Re-employment 
Ag;reement; aaid some few actions broUj^ht by emoloy^es and by labor 
ort^anizations on behalf of employees to prohibit cnrDloyors v/ho had 
sii^ned the Atjreement from interferin;^ with the collective bari^aining 
rij^hts granted employees under Section 7(a), vrerc successfully raainta.ined. 
In the case of Fryns. at al v. j'airlavm Fur Dress in,: Co. (114 N.J., Eq. 
46?) (**) the Court, held that Plaintiffs, stri]:iag emijloyecs of defend- 
ant employer v;ho hf.d si^^ned the President's Ref^mployraent Agreement, 
were entitled as boncf icit.ries of such a,^reoment, to an injunction 
restrainirt, the defendant from im-iosin,-, as a condition of their re- 
instatement, thrt the;' join a unioii desi'.uiated by him. In the case of 
Wisconsin State Federation of Labor v. Simplex Shoe Mf.-;. Co.. ( C . C . , 
ililwaukee Co., Wise, Oct., 19;-;?) (***) involvinsi an alleged intimida- 
tion by eraployor 01 employees seelrin , to or._;anize, the Court ruled that 
under Section 7(a) of the Act, injunctive r-lief against an emoloyer 
?/ho had signed the'PRA, could be obtained hy a Labor Union for the 
benefit of its members. 

The reader is referred to ilRA Office Hanual, nrrt V-rE. ll-"Leading 
Decisions - 1-23", for citavtions to and :.,ist of other similar reported 
cases (***=*), 

. B. SUIT S F05 bag:-: •;ages. 

A number of accions \;hich v.'ere instituted by enroloyecs to recover 
back AvagjCs from em-)loycrs who ha^d si^^ned the President's He-craployment 
Agreement, were successfully maintained. Hecovery in such cases was had 
on the theory that an em;->loyee, thoujn not a narty to the agreement 
was nevertheless a third ;oarty beneficiary thereof and as such could 
brin^i suit in his own ri;_,ht to enforce compliance v;ith the agreement. 
(*****). 



(*) See Chapter III, -"laiie 15, su ^ra. 

(**) For full report of case, see "A Handbool: of NUA., " by Lewis Mayers, 
Feb., 1954,^-0. 145, Par. 156. 

(***-) 4 Handbook of ItPJ., " m. ir,l, Par. 157 

(****) See A-T^endi:: "FF" 

(*****)A number of such cases are suramrizcd in URA Office Uanual, ArE-47, 
Leadin.;, Decisions - VIII-A — •• See A-TTendix "G"" 



9759 



IV. Lji-GAL RELAlIO'-SHir OF SlGr]'.^l6RI~S C?Qr 'THZ »RA TO (l) T-1. 
P-RESIDLl'T, (3) 'L^C'ti OTHLH, i\lD (5) "TEi:tD PaT^TIZS. 

Assan3in:j, for the srke of this discussi 3:1 that the President's 
Seemployment a^reeuient v/as ir. sr.ch form as to satisfy the requirements 
of the statute, other interesting leval as^iects of the A^^;reement are 
deemed a;5 (rojiriate for consider; tion t't this point. 

As has "been noted in the immediately nrecedint.; naragra-^hs, the 
Court in affordin^. redress to em'oloyees for violations of the PRA, termed 
them tliird party oenef iciaries, thus embracini^ a v/ell established 
theory of Contract La'5. 

Was there "sufficient consideration" to sup^Tort the Agreement 
rnd thus hrinji it pro-;erly within the bounds of well accented contra.ct 
lav; doctrines? If so, v.'as it a contract bet\7een the President and each 
sit^natory, or one between the verious sii^natories themselves? '7ere the 
necessary elements present to 'errait suit by third narties? 

In his contract law text, Vol. 1, ->. 2, S. 2, Mr. T/illiston says: 

"An agreement is an expression by two or more -persons of 
assent in re ,c rd to some present or f ature nerformance by one or 
morp of them. Agreement is in some respects a v'ider tern than . 
contract. It covers executed sales, ;,ifts and other transfers 
of property. It al so covers r o mises to which the lav: attaches 
no le.,al ob lj . ations. " (Underscoring suv)-'lied) 

Black's Lav; .'Jictio isr-r has this to ss^y re _ardin,p the distinction 
between the terms ";; .reement" and "contraet" : - 

"The T;erm 'aAreeuie'-it ' is oftei used as synonymous with 
'contract'. Pro-^erly s-)ea]::in^-,, however, it is e. wider term than 
'contract' (Anson, Cont. 4.) An ;i_,reemexit mi^ht not be a contract, 
because not fulfillin ,, sovie rfquirenent of the Ifuv of the place 
in which it is iiiade. 3o, where a contract enbodies a series of 
mutual stipulations or co-nstitient clauses, eachi of these clauses 
mi^ht be denominated an 'a_,reempnt . ' "(* ) 

In the same v.'orlc various definitions of the term "contract" 
ar!")ear, some of which are herewith quoted: 

"An agreement, upon sufficient consideration, to do or not 
to do a particular thin._,; 

"A covenant or a^reeiaent between two or more -nersons with 
a lawful consideration; 

"A contract is an a^'reement between two or more persons to do 
or not to do a narticular thinj^'; and the ' oblit.::ation' of a con- 
tract is found in the t'-Tins in which the contract is expressed, 
and is the d';.ty thus assumed by the contract inj^- -larties respective- 

l.Y t o j.i erf ^ orm.the sti-mlations of suc h co ntract " (**) 

(*) Second Edition, paj^e IS. 

(**) Sec Tc\gG-261. 
9759 



It can not be argued that the Agreements with the President were 
arrived at in the course of a bart;ainin^: transactionjsetween individuals 
and hence such agreements can he rdlj he co.isidered strictly consensual 
in nature. A r)romise of ai^ hind hy the President is not to be found 
in any [portion of the Agreement. Lawful consideration to su-yiort the 
Agreement may be contended to exist, hov/ever, in such benefits as flow 
;fco the signatory employer, "hough not exortssly set forth therein, 
sisnature to the agreement pas accom-oanied originally v/ith the grant 
of authority to display the IJRA Blue hagle emblem, subject to a condi- 
tion subsequent that on breach of the Agreement, the insignia and rights 
incident thereto would be ?/ithdrav.'n. Furthermorej those assenting 
to the Agreement did so v/ith the understanding that the President had 
obligated himself to exercise his influence tov.ard the creation of _,,ood 
will by launchip-e, a cam^^aign for pledges of co-o-ieration by consumex's 
and further, that earnest endeavor to procure other signatures to like 
agreements would be mtide. 

Kotwithstandint^ the inrolied or assumed obli^,ation of the President 
in the above regards, his -iTromise as such Y.'ould be rendered more or less 
illusory by the terms of Section 10(b) of the Act which reserves in 
him the lower to c::,ncel or modify the ter:is of the Agreement. As a 
consequence of re-iorts thf t ms.ny employers \vere hesitating to sign the 
PHA because of a fear that the 'President might exercise the poner 
i^ranted him under Section 10(b) the I^PA Administraxor on August 5, 1933, 
issued this public statement: 

"In the first place I question the validity of this inter- 
pretation of the iT.I.R.A, The ri^:ht to concel or raodii'y his 
own action does not imoly any _,rant of ;oGwer to the President 
to change the obligation entered into by a ;jerson who has 
signed an agreement with the President. Certainly it is un- 
thinlrable that the President would ask employers to sign a; ,ree- 
ments reserving to himself the nouer to rewrite "che a^^reement 
and then hold the other -larty bound by an obligation he never 
assumed. Indeed it is sur;-)risin^ to think that anyone should ' 
im-^ute any such intention to the President." (*) 

AlthoUt..;h the greater \/ei,Jit of authority is seemint^ly to the 
contrary, the opinion that the President's "oower to cancel or modify 
the terms of the Agreement may not be a serious defect in view of his 
actual forbearance to make' such alterations and an early imblic 
announcement of his intention to use ]jis "ooi/er sparin,;ly, finds su^iTort 
in a v/ell-regarded minority rule; and 2ubjecti-i:_^ such power of the 
President to a constructive condition of reasonable notice would bri.:g 
it well within the -mrview of "sufficient consideration." (**) Moreover, 
the reserved power of the incorporatin-^. St.^'te to alter, amend and repeal, 
in the closely analogous case of corpoi^at- charters (***) hac been held 
not to avoid their bei:w treated as contracts, at least within the 
meaning of that Section of the Federal Constitution r-^lating to im- 

pairment of. contracts (Section 1, Art. lO). ,. 

(*) See KRA. Press Release :To. 191 of o/5/S.^, co;iy of which is in the 

Ap-oendix hereto, narked A-roendix "HI'". 

(**) See Corbin, "The Effect of Ovtions on Consider' tion, " Selected 
Readin_'s on the Law of Contracts (l93l) 434,446. 

(***) j'or a collection of clauses reservin.,. such -oower, see llott, "Due 

Process of Law," (19:-: , 3o4, n. 19). 
9759 



-3t- 

On the other >.and, thou^_-,h it niaj 'j^' contended thctt no -oroi.iise was 
offered by the President, his actions could irohably be construed as 
furnishin^^ t.ie requeted consideration to bind one assenting to the 
A£;,reement rs tl-.e offerer in ?. unilr'teral co:itract(*). 

The writer's o-jinio-i is thc.t the President's i.inunity from suits 
constitutes the primary bar to an unqualified concurrence in the theory 
that a contract, strictly speakin^^, did in fact exist betv;een the 
President and each of the signatories to Recovery Agreements (**). In 
this s:.me connection, however, there is abundant cuthority for the 
doctrine that "Mutuality of 3emed,y" is not =.,lways requisite (***). The 
view rtiay be taken that the President is merely the "iromisee of a contract, 
the considerati'^n for which run?, fro:ai third parties, the other signatories 
(*"**)• In this event, the immunity of the President from sui b loses 
its sii^nif icance, as one does not ordinarily attempt to sue a ;oerson 
cwin^^ no duty. The result is similar if tho President be rot^.arded as 
a third 'oarty beneiiciary of r contract bet\,een the signatories of the 
P.H.A. 

Sumrainf^ uo, the conclusion vhich this writer h;\s reached is that if 
a contract did cxi^t, it was one oet\een the several si.jnatories to the 
P.H.A. (***=(=*). "Consideration" apiofrs not only in the mutual -promises 
to jjatronizo (******), ■•jut also in the muturl self-limitation by signa- 
tories as to the cov.duct of their establis^-u^ents (*******). Analo_,y is 
to be found in the case of choritaule Si'hscri-Ttions, \7hich have sometimes 
been hela eniorcea.blo on ; sii;;ilar analysis. (>i«*-^' ***=« ) 



(*) Cf., Lander v. Su--rior Steel Co., iri Atl., 571 (Pa. 19C2) and 
United St-tc;-;; v. Kraus, Z: 7. ( '-ind) 406. 

(**) Liisbissi ) )i v. Johnson, 4 Wall., 475; see South.iort Petroleum ^o. 
V. Icliec, U. S. T.'eelzly Law Journol, Au,,. 32, 1J33, at 473). 

('^**)3ee I ■■■illiston, Contrrcis (l930) Sec. 105; sec also Restatement 
Contracts (Ai:i. L. Inst., 1933). 

(*^**)Cf., Van Em;-.-: v. Stanchfield, 10 ilinn. ?55 (l;::79); Palmer Savings 
Baiik v. Insurance Co., 166 Mass., 139, 44 11.1., ?11 (1896); see, 
Restatement, Contracts, su-ora. Sect. 75 (a); - but com-oarc, Dunlo'T 
V. Selfrid^.e (l915), A-r-icals Cases, 347. 

(***** )Under such construction, the exercise of the President's power 

to Piter and amend does not defeat considcr^'ition, since he is merely 
a third narty. 

(****** )See parafe,Taph 10 of the PPlA, in accordance \;ith which an employer, 
by subscribing,, to the A^^Teement, o.,^reed "To su')port and i:iatronize 
establishments which also have signed this At,rcement." - See also, 
FRA lullctin #3, "oar. 8, Re: ConsmTiers .leire of cooperation. 

(******* )Sce )S,ra{;.ra;-)hs 1, 8 ,-vnd 14 of Agreement. 

(***"**** )Higcrt v. Trustees of Indiana Asubry Univ., 53 Ind. , 323; 
'.Vatcrs V. Union Tr. Co., 129 ":ich., 640. 



9759 



Des-nibe the absence of any oer,,r ini;i,, trsns.-coioiu' jetv/een tlie "oarcies, 
t">j ai^ret?ment, G were entered into ir. furtherL'iice of a nation-wide -iro- 
, raa zo oromote the ou.blic vjelfare and less forcible considerations of 
jra'olic -lolic- teve been held sij.fficinnt to ma?'e the promises bi:-.aint:; 
u-»Oii T,he ui .liPtcries (*). Also on substantially similar theor--, 
cr-'.^aitors' .loimosi tion at.,reeraen.ts have been uoheld (**). 

rin;\ll7, v;ith respect ro the ri Jit rf ;- third "oarty to bri ij suit, 
it is believed thi.t the elenents necessaiy to allov; such suits are to 
be fotind in the agree.uent . Those nece'ss' r^' elements are: ^l) inteno 
of the oarties to benefit another, a-nd (.?) a.de(iuate desi^-na-tion of a 
beneficiary. "Int.;nt" is raerely a -matter O'^ construction {*•**) -nid 
"desi.jnation" need noo be or luine if ref:'re:ice is to an ascertainable 



(*) See Corbin, S'-lojteu Recdir. ,3 on the Lay; of Contact?, (iw?!) 
sid'^-ictio"' in Chc^ricable Subscri^itions. " 

(**) See I biliist^n, Contracts (lC70), Sect. 1?6. 

(***)V/]utnhe; d v. ;:ur,,es3, 61 \ J. L. 7o, 08 -^tl.- 80? (l307). 

(****)5ee Gorbin, "Third Parties c-.z Jenef iciarit 3 of Contractors' 
Surety Jonus," c6 Yale L. J.., 1. 



3759 



SZCTIOF 7 (Id) OF iUPJL 

I. PROVISIONS. 

Section 7(b) provided that in any trade or industr:^ which observes 
recuirements relatin- to labor's rignt (l) to organise and (2) to 
bargain collectively, 

1. The President is directed to accord eraployers and era- 
ploj-es every practical opportiinity to establish b-'- mutual 
agreement, standprds v'ith respect to 

a. i.laxinun hours of labor, 

bi i/Iininum rates of v/ages. 

c. Other v/orking conditions necessaiy in such 
indiat-try 

2. "hen approved bv the President, these standards shall 
have the same effect as a coJ-e of fair competition, 
a^poroved b3'- the President under Section 3(a) of 

the Act. • 

II. PURPOSES. 

One of the stated objectives of T.I.R.A. (Section I - "Declara- 
tion of Policy") was to "induce and maintain united a,ction of labor 
and management under adernjia.te C-overnmental sanction and suoervision, " 
and Section 7(b) was obviousl^'' de-.-igned to aid in the accompli sliment 
of that objective. 

The follov/ing exceri^ts from the Brookings Institution's volume 
dealing with 'i:'."BA are deemed pertinent, as well as accurate observa- 
tions: 

"Although the Recovery Act was largely an enabling act, it 
laid doTi^n several provisions which bear u^on the specific im- 
plementation of its general labor ^orinciples. . (*) 

Tlie most comprehensive implementation of the policy of the ITIRA 
is contained in Section 7." 



"Section 7 is seen to contain the possibilities of throe 
distinct airoroaches to tlie problem of industrial relations: 
i3»irst, Section 7(a) suggests the approach of giving workers 
'safeguarded free choice' in the designation of reorescntatives 
empowered to brrgain collective!-'- on their behalf. Second, 
Section, 7(b) sij^rgesta the approach of establishing labor stsji- 
di^rds by collective agreement between emi:)loyers s.nd tra-dte unions, 
such agroeracnts when aroroved b-'- the President to have the force 
of a code. 



(*) "The ITatioiial Recovery Administration," page 418. 
9739 



Third, Section 7(c) sn^?:gestr, the r..^roro.?,ch of -^ettins" r-ages, hours, 
ruiri other vrorlciug straidards by Prepidential action in industries 
T/here mutual a-^re-Taents are rot ar.ce." (*) 

"Clause (b) of Section 7, '7uich has attracted less attention 
than Clause (a) of tue s-ine section, hut v.'hich' has been put to 
considerable use under the Gonrtruction and Bituminous Coo.l Codes, 
defines a fairlj- specific procedure for a-oiDl'^ing methods of col- 
lective bar.iainin'?- to the determination of labor standards." (**) 

"Section 7(b) defines as can alternative to coae-m.al:ing, a 
procediire vihereliy labor stand;rrd.s may be established b"''- collective 
brrgaining, cji& su^pplies a method for conveying strtutory sanction 
to the terms of a collective labor contract." ( ***) 

III. SC0P3 0? AGR^313hTS APPH0V3D U:3ET 7(b). 

A. AKBI qui TY OF " SjICTIC J . . 

The vrording of Section 7(b) cr^rted an ambiguit^' Fith respect to 
tJie scope of agreements r"roroved purs-iant thereto. 

After -iirovidin;: tlirt employers and employees may establish labor stan- 
dards by mutual agreement it is stated in the last clause of the section 
that such agreements, when approved b-r the President, shall' heve "the same 
effect as a Code of •'''air Com-oetition approved under Section 3(a)." In 
viev of the f^-ct that an approved cod.e for a given industrA'- i^tis binding 
upon all. members of th- 1 inoustr^r reg,:rdless of whether the-^ formally as- 
sented thereto, a much" d6b£> ted question arose as to whether, by reason of 
their having "the same effect" as codes, • ngreements a-op roved under Section 
7(b) v/ere intended' to bind all membfirs'of taat 'prrticulpr indxistr;'- in the 
s'^.me manner .as ^. code, or only the parties assentiii,'- thereto. 

A second .ouestion vhich "oresented itself for consideration v,'as 
^"'hether era-;lo"ees, ■under the terms of the_ Section, -ere subject to the 
penal t:'- provisions of the Act. .... 

3. LEGISLATIVE IT g^VT. . ■. 

A review of the IrDgislative histor- of tlie Act incUcr.tes that com- 
larativelv scant attention wa'^' given to Section 7(b), thus making it 
difficult to discern tnerefrora the true ir.tent of Congress as to the 
significance of the language used in the Section. The voluntrr;'r nature 
of the Agreement is brought out in the tsstimon."/" of Lewis Dotiglas, form- 
er Director of tlie Budget and one of the sponsors of the Act, who, in 
testif-rin-g before the Mouse- Committee on •'c.-"-s and lleoiis, stated: 



(*) Supra, V. ">:A. 

(**) Supra, p. 420. 

(***) Supra, p. 422. 

9759 



-40- 

"I would jii^t point out, pr..ra:^raph ('b) of section 7 gives indiis- 
try every opport^onity to vol-antarily agree v;ith respect to the items 
enumerated in section 7(a), and then if they do not, the President 
mai'' investigate the labor conditions and the policies, the wages and 
the hours of labor, taking into consideration the different factors, 
s\ich as slcill, and other factors, anci thereafter may prescribe a 
limited code of fair coracetition having to do Tiith labor condition*^,. " 
(*) 

Testifying before the srme Hou.se Conraittee, Senrtor Jagner, another 
of the Act's sponsors, had thisto sa^/: 

"T7here the . right to collective bargaining prevails enplo^rers 
and employees are given the first Q-oportunit^'- to c -ree uoon maxi- 
mum hours, minim'iim rrtes of pa-y, ano other working conditions. 
That is, those mutua,l agreements can onlj^ be recognized where these 
rights of labor to collectively bargain prevail. TJhen such agree- 
ment is approved by the President it acnuires the character of a 
code. " (**) ... 

It may oe ir.t^jresting to n^te also tliat tnere is a,t hand a copy of a 
raemorajidum dated June 8, 1934, directed by a. member of tJie Legal Divi- 
sion to the officials of that .Division, v.'herein it is stated: 

"I took advantage of a brief ooportLinity afforded last even- 
ing to ouerj'- Senator V/agner on t^vo iioints \.hich have been the re- 
cent subjects of our discissions, nameV-: (l) Do the standards of 
agreements arrived at and approved under 7(b) of the Act become 
binding upon non-parties or non-assenters in the same fashion a.s 
those established pursuant to a 3(a) Code; .... Senator "'"^agner's 
off-hand opinions were that: (l) 7(b) agreements are not intend- 
ed to bind non-partiss or non-assentors; 

"In justice to Senator "agncr and yourselves I should state 
that there v/as not sufficient opportunit]^ to discuss the .... 
matters in detail and to obtain ^o^r that manner a considered o^oinion 
from the Sena,tor " (***) 



(*) piJLblic Hearings held by Committee on '."ays find i.ioans of the House 
from l.iay 18 to 20, 1933 - Bill reported favorabl.v b- the Committe 
on May 23, 1933 — See House Heport 159, 73rd Congress, 1st Ses- 
sion, on file in Lax' Librarv, Legal Division, I"1A. 

(**) See foot rote immedia^tely p.-eceding, 

(***)Copy of this letter appended hereto, as Appendix "II" 



9759 



-41- 

c. rik irT.:npiz 2A ?iors . 

There -'■ere tr'o conflicting- theories acvaneed nithin :'IIA. relative to 
the scope of approved 7("b) r jreemeats, rep.iiltin;'; finally in rn of^icicl 
ruling Leing made b"'- the Legal Division, r.s reflected in Legal Division 
iieraorandtun To. 53 issued on July 26, 19E4, by Blaclx'ell Smith, Acting 
General Counsel. A co-iy of the latter Trill be found in the Appendix to 
this report (*), as T/i^.l also a coo;'' of Legal Research Llenorand". .ii To. 19 
of June 12, 1934 (**), to both of :7hich the rea,der may refer for t^ie 
reasoning which prompted^ this decision re-^pecting the t^o troublesome 
questions above referred to: 

(1) L'On-assenters to tiie Agreement ''eve not bound ''02'' its 
terms; and tae rjhra.se "same effect as a Code of Jpir Competition" 
used in Section 7(b) referred to the fact that tJie Agreement vrhen 
approved, should carr;,^ the penalty provisions of the Act, rather 
than that it shou.ld be binding upon p11 members of the industrj^. 

(2) Inasmuch as ei.iployees vere seemingly not intend.ed to be 
liable under 3(a) codes, they therefore vere not liable under 7(b) 
agreements which have "the same effect." 

Section 7(b) might seemingly lirve been construed to perrait an ad- 
ministrative reauirement in tlie encouragement of collective br.rgaining 
that codes submitted uno-er Section 3(a) could, not receive the consider? tion 
of the lational ?.ecovery Administration until labor provisions had been 
a-r^rived pt in the form or er-uivalejit of an agreement under section 7(b). 

It is intere'^ting to note tat t John L. Lewis, president of the 
United Mine T/orkers of America, at the Public 2Iearing on A-ogust 10, 
1933 on the Bituminous Coal Code said.: 

"Provisions as to ''.■"ges and v^orhing conditions -"or a pro- 
posed code could, not be submitted by errolo^'-ers, or become the 
subject of investigation and. determina.tion by the ?.ecover;r Ad- 
ministra.tion until every opportunity had. been given to emplo-^ers 
and e.mplo'^ees to meet and. agree u ion ma::imum hours of labor, 
minimum rates of pa.y a.nd other r.ecessr r"'."- conditions of emiDlo-vrment. " 

However, this ijossible aTproach to the codes, ^.diich undoubtedl"- 
would hpve retarded, the codte maJang process, but which r^lso luidoubfredly 
would, have resulted in higher labor staaidiards in such cod.es as were 
approved, was not adopted and ind.n.str^'- represented by ma.nagement alone, 
v'as permitted to sronsor code r'roiosals, including labor provisions. 

IV. DISTIrGlJISHIiG G UiTu.^.TZmSTiOS 0." 4(a) AiT) 7(b) ^Gt^^LSI'TS. 

"hereas, a.s has been oointed out in a. preceddng Ciapter, Section 
4(a) made provision for various t-pes of ''voli.mtar^^ a.g-eements, " the 



(*) See Apnendi." "Jd". 
(**) See A^o-oendi:: "iCK. 



9759 



possilDilities afforded ^'' Section 7(b) -ere restricted to a prrticul^r 
^y"De of "^mutual egreemert" arrived ?t Tour'^.uant to collective bprgaining 
negotiations betv'een emplo'"ers and emplc'-Ges, or representative groups 
of either or both. liorecv-r, 7(b) agreements vere fiirth.?r restricted in 
application to those industries •.Therein the collective bar~aining rights 
of enplo^rees "ere recogni'^ed and established. 

Another and more inroorteint distinction bet'-'een 4(a) and 7(b) 
Agreements lay in txie force rnd effect r/nich the Act gave to each 
'-hen farmallr/ cp'oroved. Ko oenalties are -orescribed by the Act for 
violations of the former, v.hereas 7(b) agree^ients crrrj- the same oenal- 
ties for violation of their provisions as rre px-escriued for code vio- 
lations. : 



9759 



-43- 

CIIAPTER VII . 

EXTEITT TO ^THICH SECTION 7 (t) WAS UTILIZED 

Before and diiring the administration of the Recovery Act, the prac- 
tice of determining wEfSes and ho-ars and other terras of employment by means 
of collective "bargaining 'beti^eeh emploj^ers azid lahor representatives, 
was vell-estaliliGhed in comparatively fevf industries. Within tlis narrow 
range were the Construction Industry and the Bituminous Coal Industry, and 
it developed that such agreements as. were formally executed in accordance 
with Section 7 (b) were confined to: (l) numerous so-called "Area Agree- 
ments" between building trades unions and employers in the Construction 
Industry; ajid (s) the "Appalachian Agreements," supplemented by a number 
of so-called "District" wage agreements, entered into betvreen operators 
and minersin the Bituminous Coal Industry, all of which were supplemental 
to the Code of Fair Competition for that industry* 

L. APJIA. AGEEElviSlJTS UlIDZR THE GOITSTPUCTIOII CODE. 

There has been nompleted and is available for reference a "History 
of the Area Agreement Section, Constraction Division," (*) which deals 
somewhat at length with the formulation and administration of Area^' Agree- 
ments -jJider the Construction Code, For that reason, the comments to follow 
regarding such s„greements are intended merely to be of an illustrative and 
not wholly embracing character. 

A. 0:11 GIN '■ ■ ■ • 

One of the major problems which arose in the process of getting a 
code through and approved "'for the Construction Industry was to reconcile 
the conflicting views of org?Jiized labor and employers. There were 'numer- 
ous divisions and sub-divisions of the Industrj'-, but only in the building 
trades, — for e:-:ample, masonr;/-, painting and paper-hanging, plumbing, 
electrical and so on — v/as labor iTell organized, and it v/as only in such 
brS-nches of the industry that collective bargaining was a recognized cus- 
tom. Labor unions in the building trades insisted not only that separate 
codes be drafted for the buildiiig trades, but also that such codes pre- • 
scribe: (l) minimum wage rates for unskilled labor; (2) classified wage 
schedales for semi-skilled and skilled occupations; and (3) equal partici- 
pation irdth respect to administration. The inclusion of skilled wage mini- 
m'a 'in the supplementary codefe was pa,rticularly objected to by contracting 
employers. Hegotiat ions' finally resulted" in a compromise being reached 
whereby the Basic Code provided not only for the inclusion of skilled wage 
minima in supplementary codes if consented to by employers, but also pro- 
vision was made for the determination of labor standards by means of col- 
lective bargaining agreements between employers ajid employees. {**) 

Section 1 of Article III, Cha.pter I, of the Construction Code author- 
ized traly representative associations or groups of employers and employees, 

(*) iJow in General Files, iI5A, LaSalle Bldg. 

(**) VoluiTies A and E of Constraction Code, on file with Code Record Sec- 
tion, "NBA; Deputy's files, Construction Division. Also see "Report 
of the proceedings of the 28th Annual Convention of the Building 
Trades Dept,, A. F. of L. ," (Oct, 1954), pp. 58-82, wherein will be 
found a full story of the mailing of the Construction Code, 



-44- 

and 
in- er.cli division or sut-division of the industry, after proper notice/heoxing 
and as a result of "bonafide collective "bargaining, to establish "by mu- 
tual agreenent "for a specifically defined region or locality the stand- 
ards -of hours o,f laoorj- rates of pay, and such other conditions of em- 
plo;T.ientj relating to occupa,tions or tj'pes of operations in such divi- 
sion or .suhdivision, as may be necessary to effectuate the ;oolicy of 
Title I of the Act." 

Hence the so-called "Regional Collective Ba.rgaining Agreements, " 
better IcnoiTn and more often referred to as "Area Agreements," had their 
legal foundation jointly in Section 7 (b) of the Act and the Construc- 
tion Code, 

3. SCOPE , ' ■ 

As stated in Chapter VI of this report, Section 7 (b) of the Act 
^7as inter^jreted as meaning that agreements made and approved pursuant 
thereto vere binding only on as-^enters. Hovrever, under the terms of 
the Construction Code, Area Agreements, upon approval by the President, 
becnme binding upon all employers and employees of the industry within 
the region defined in the a,greement, any violation thereof constituting 
a violation of the requirements of the Code, 

Originally, the scope of e.ach agreement rp.s restricted to a single 
type of operation ijithin the confines of a single division of the indus- 
try'-, but the Code i7as onended on Udi'- 9, 1935, as follorrs: 

"Amend Article III by adding to the end of the first para- 
graph of Section 1 of Article III the following: 

" 'i^^o thing herein contained shall be construed, to prevent 
traly reijresentative associations of groups of employers and em- 
ployees respectively concerned in two or more divisions or sub- 
.^ divisions of the industry by mutual consent from entering into 
a joint mutual agreement, '" (*) 

C. PaOCEDUHS 

To some extent the procedure followed in the formulation and 
adoption of a code, under Section 3 (a) of the Act, was likewise fol- 
lo'-'ed --ith respect to Area Agreements. That is to say, the sponsors 
of such agreements must have been, "truly representative" associations 
or groups of employers and employees, and a condition precedent to 
their approval "as a shcdng that proper notice and hearing had been 
accorded all interested parties, 

,■ The Area Agreement Section of tlie Construction Division was set 
up by ilEA to coordinate the "orl: incident to the formulation of the agree- 
ments ciid assist the sponsors to obtain Presidential approval thereof. 
In his memo rand-ora of April 24, 1934, ^hlch esto.blished the policy oif the 

(*) Amendment llo, 8, Codes of Fair Competition as approved, G-ovemment 
Printing Office Vo'lune - ICCIII page 103. ' 



9739 



Area A^reenent Section, Llajor G-eor:?e L. 3ei-r^, Division Aclrninistre.tor, 
stated: 

"The -pi-ocesE required, in securing a collective 'bargaining 
contrcict rests solely upon the BLiplo^'er and eniployee organizations. 
All of the initial vrork nust be e:-ecuted by such organizations. 
It is not our f-onction to either encourage or discourage the 
cons'OiiJiation of collective hartjaining agreenents "between ei ployers 

and enployees. . .TTlien collective 

bargaining contracts for areas or regions have been consiimnated by 
enployers and. enployees, these contracts mxist be subuitted to. this 

Division for disposition 'Je shall, upon receipt 

of a collective bargaining contract, acimoiTledge same and. set a 
date for ;ohblic hearing. . , .On corapletion of the hearing, the 
records,: -.shall be iiraediateljr transnitted to this Division' for 
st-cidy andi c'onsiderp.tion, as '-ell as decision as to rrhether the 
collective bargolning contract cones properlj'- rrithin the pu-ryien 
of the Constr'action Code to a degree justifying transnission to 
the p-'csident for approval ..".."(*) 

An., Office "Linnual, arranged chronologically, rac developed Vf the 
Area Agroe:ient Section, v/hich outlined the proced.ure to be follored in 
regard to the various steps of t]ie bargaining agreenent process. (**) 

D, ADlIl:tTIST:^TrOIT ; 

Tlie Basic Code for the Constraction Industry;- vrhich Tirovid.ed. the 
franic'-orh for the o-oeration of tlie entire Industry, authorized estab- 
lislment of a bi-partisrn Board to be :aio-'n as the "National Construe-, 
tion PlriirJ-ng k'iid' Adjustment Board," -'hich Fas vested ^ith arbitrational 
oo'"ers oyer, all, diisputes concerning. -'ages,, hours and conditions of em- 
ploy:ent, vhich --.'ere voluntarily submitted to it (***), In turn,^this 
ifetional .Board ^o.b .jiven the -lO'-'er. to establish Segional. Board.s, d2.so 
bi-partisan in character, (to- be co;:'po'-ed of an eoual nuEibcr of members 
fron..enployer groups and emrloyee grcaps) to vrhom "nay be subnitted 
natters froii their r'osjiective area,s in disputes having the sane rela- 
tionship 0.S natters to be sxibnitted to the national Board., ona every 
effort on their part shall be -nade to reconcile ruch e;:isting differ- 
ences ' '~ith the requirenent that their actions shcill in. all in- 
strnces be rub:'itted to the iTational Boards for final o,ction." 

Tims, the Basic Code established the principle of Tratual detej^ 
nination as to adriini strati on, as '.7ell as to negotiations. It is au- 
thoritatively stated, horever, that these Regional Boards had not be- 
gun to .-.ctuallj'" ftmction, but vere nerely in the process of being set 
up '-'hen the Schechter decision, invalidating the Act, rras rendered on 
uay 27, 1935. (****) 

(*) See A-npendi:c "LL" for a co-:->y of this letter. 

(**) See Histoi:^'-, Area A^.Tce lent Section, Const xiict ion Division. 

(***) Chia"iter I, Art. 3, Sec. 5, Con'-.tn.iction Ind.ustry Codie, 

(****) Based on intervie-- --ith 2. 3. Dohorty, Deputy Administrator, 
Constmction Division, III^, 

9759 



- . „46- 

All "Area Agreements" contained a provision to the effect that vio- 
lations thereof i-ere sul-gect to investigation by such Boards as vere es- 
ta^blished "by URA for that pur;oose for the Division of the industry de- 
fined in the Agreement, Also, those agreements v.hich specifically set 
"o-'.clock" hours of employment, made provision for appointment of a "Com- 
mittee," as ^-ell as a Soard. The Committee was equally repi-esentative 
of employers and employees and nas charged nith the responsibility of 
graiiting permission for departures from the regular hours specified in 
the agreement to the end that provisions of the Agreeulent could be prop- 
erly 'policed, Ii the sponsors. so desired, the personnel of the Board and 
the Connittee could be the saxie, Tlie follbulng is quoted from the Area 
Agreement Section's History: 

. .. "Area Agreements requircd'.nb extensive administration, as they 
'-ere practicallj'- self-policing, A ready method of settlement of 
any violations vras available through restitution of wages." (*) 

E. EXFERIEITCE MD PROBLK.IS . , ' 

In all, 282 prop05;e(jL Area Agreements were submitted for approval, 
but the nuiiiber finally approved was only 48, Some 127 of those pro- 
posed, had gone to public hearing as of i.iay 27, 1935, Of the total sub- 
mitted, 157 were from the Painting, Paperhanging and Decorating Division 
of the industry; and of the 48 finally approved, 32 covered that Division, 
the rei.iainder being divided as follows: 5 for the Electrical Division; 
3 for the iiasonry Division; 3 for the Plumbing Division; 2 for the Tile 
Division; 2 for the Plastering Division; and one for the contractors Di- 
vision, (**) 

Several factors contributed toward such a comparatively small number 
of agreements receiving final approval, and toward minimizing generally 
the success of the program for stabilizing wage and hour conditions in 
specific areas by means of Area Agreements. Briefly, the outstanding 
problems seemingly may be summarized as follows: 

(i) Up to the closing daj^s of i"aA, a policy determination was lack- 
ing '-ith respect to a number of questions which arose in connection with 
Area Agreements, As to this, the reader may refer to a copy of a merao- 
rand-vn, dated April 8, 1935, from Alvin Brown, Review Officer of NRA, to 
n. A, Harriraan, A&iinistrative Officer, which will be foiond in the Ap- 
pendix' to this report, (***) 

(2) The exacting deiiands made oji the sponsors of the Agreements by 
the Administration with respect to representation, which nroblem was am- 
plified by the failure of the Administration to adequately define "Triily 
Representative." The standards employed by the Administration were so 
severe as to -discourage mnny who had undertoJ:en area a.greenents and 
sloped up their ap:oroval no considerably as to cool the interest of other 

(*) P?.rt l; Chapter III, page 8. 

(**) Files ajid Records of Constrn.ction Division, IIRA, 

(***) See Appendix "l.ll" 



9759 



areas. The denands of reivreseAt£,tion - e ?c calcala'ced on es-oiinateB ox t:ie 
■orooa'ble lu-uiber of employers '-ithin the inciustr^r for -diich the data 
a-vailaole and used -t.s rntiquated pjn.t nade no distinction "between nem- 
"bers of the inc'.ustr^- aiid en/olor/in:^ nenhei--^; of the ind\i;_;tr3% 

(3) The Adainistration did not loiidertahe to sponsor the develop- 
ment of Area Agreeuents or to :Sniide the local sponsors in the collection 
of th.e necessarj'- naterial or other'-'ise sssi'^i: the .-irocess, e::ceT t 
thro'-j^h instr-c.ctions nailed fro:i TJashinstono Correspondence on a lar^e 
n-oriber of a-reenents indicated that the sponsors w-ere unaccustoned to 
cond-acting negotiations by v:ail and as a res-'Jlt, the procedure uas vji- 
necess.ivrilr prolcnged and, in so::e cases, interest actuallj^ killed. 

(4) In :-:an;" inst-ixicos Area A";reo:ients .jroved inadeqxiate Decause 
certaiji of the CoCei: h'.d 'ico^itractunl" definitions but failed to enbrace 
"functional" definitions ^/hich. re&alted in other indvLstries rhen acttia.l- 
ly doing constr'actiop. •'.rork not being bo'und 'oi~ the ^oertinent supplenen- 
tary Code for the Gonsuraction Indii;:.trj', (*) 

II. Tis APPAMChiAi: a^l^:]:-l::t. 

A revie-j of the infoi^-ation sxid. data available "ithin laA (**)and 
such do,ta o.s has been obtained fron outside sources, gives credence to 
this rei:ar3: aipeai'i'Tg in ano-oher vorh: 

"ITo Code in the history of the v.l'A gave rise to nore striiggle, 
nore -ler ilercities and r:; ore procedural crises thaji did the Bitvjiin- 
ous Coal Code. "(***) 

•There had e-";isted ov^u' a period of ^^eais, a lack of coordination 
aTid cooperation bet-een the Bituriinous coal "oroducers in different sec- 
tions of tJie coujitr:- and they had "osen engaged in bitter competitive op- 
erations. The industry- presented the ftirther problera of one in '^rhich 
there 'ras far-reaching organization of labor on aii indu.strial basis, the 
United i.^ine TJ'orkers of Aierica havi::g contracts r-ith iiany operators in 
,.ip,n;- fields and claining org-^jaization of ^'orkers in nany other fields 
'"here no contractual relatio?ig existed, (****) 



(*) 'Jith respect to {2), (3) mid (4) above, reference is la.de to 

"Labor -'nd t^ie Codified Construction Industr;,'-, " (pp. 17-19), a 
report submitted by the President of the Building Trades Kept, 
of the A, J. of L„ at the Oct. 19o5 -Qonvention of the A-iericar?. 
]?ederation of Labor; and see also, Histor;-- of Area Agreenent 
Section, Constiaiction Division. Appendix "i'J:^" 

(**) Voli.ijaes A tjid 3 of :>it-jJiinous Cool Code, filed --ith. Code P.ecord 

Section, "JVi^i.: Dejiuty's files, Coal Section, --juider "Pre-Code" 
material, nov; in general files, IhTA: and also a nuuber of ITPuA 
press releases. 

(***) iiji-ie national Zecovery Adiiiinistrrtion" - ^\ii A::;-.lysfs .and Ap- 

':3raisal, by iSrookings Institution, page 4S1, 

(****) See Te-:t of Deput;" Acdninistrator 11. k. Sinj)son«s report of Sept. 
17, 195l;, to ITPA AoTiinistrator Johnson on the Bituiinous Coal 
Code, contained in :TA Press kelease ITo, 819, -.'hich is appended 
hereto as Appendix "GO" 



9759 



~4S- 

Oi::icials of t.ie United. I.;ine '^/or'':crs of Arierica insisted upon recog- 
nition of njid collective l)ai-gainir.:; '-ith the Union as the renresentative 
of eaployeos of the industry, as part of the codCo (*) Prior to 1933, 
it seens that the United Line T7orkers of Ai.ierica had succeeded in 
imionizins cnlj' a proportionatelj^ snail segr.ent of the industry, esti- 
mated at loro'ba'bly less than and at least not in excess of twenty per 
cent. District rrage contracts had heen actuallj'' negotiated and vrere in 
effect '-ith grouos of oioerators in certain areas - for exomple, Illinois, 
Indiana 3Jid loua and in addition a few contracts ha.d 'oeen made rith in- 
dividual OjDerators in other fields (**). 

Cn the other hand, a decideulj^ enti-union ientirnent had all along 
prevailed aiiong. producers in the Appalachip,n Territory, uhose production 
appro::ii.iatGd, according to reliaMe estinatest seventj?- per cent of the en- 
tire output of the induct rj"-; (***) nid no '/age contracts had been negoti- 
ated in that region, 

'fnen passage of the national Utecoverj^ Act becaane evident, the United 
l.iine TJorhers of Auerica, instituted sJi intensive organizational drive and 
■fay the tine that discust-ions and hearings by V.'PA on the proposed code 
for the industry/- had gottan yell under ray, a sulstciitially complete 
•anionization of labor had been accon-olished in the AiToalachian Districts. 

finally, in the co-arse of the code-noJ'iing process, the northern Coal 
Control Association and the Snolreless Appalachian Coal Association, ^ho 
reijrssented alnost o21 of the producers in the Ap:oalachian Coal area, 
(*****) agreed to recognize the United i.i:ie Worhers of America and to 
ent^r into a collective agreenent 'itn it, The aid of the Adiiinistration 
rras soj-ght to facilitate the 'negotiation of a contract between these As- 
sociations end. the Union and it '..'as evident to the Administration that 
this step having been taken, a successful conclusion to these negotia- 
tions ^c.s of the utmost importance in bringing about the submission of a 
code for the entire industr;'-. (******) 

Tluis, throagh a process of mutupl cooioeration betreen the I'PA, mine 

(*) See Jul;- 15, 1932, issue of United Line Workers Journal, Vol, 
44, ITo, 14, pp. 5 snd. 4. 

(**) Data obtained from Executives of Statistical Unit, Bituminous 
Goal Study, Division of ■J^evieu, K3A, 

(***) See Terct of Dc .uty Adminiotrator Simpson's report, referred to ■ 
above — Arj]iendix "00" . 

(****) See Vol, 14, United Line ^Jorhers J.mrnal. 

(*****) See Appendix "00", 

(******) See Appendix "00". • 



9759 



"43- :• 

o-oerators and the Union, and riroceeding in accordance '.vith the ;orovisions 
of Section 7(t)) of the Act, there was ne^^otiated nhat carae to "be known as 
"The Appalachian Agreenent," v/hich var. signed on September 21, 1933. 

This was a hasic a^^re c-nient affecting V7ages, hours of labor and con- 
ditions of eraployient , covering the Bit-Jminous Coal fields of Pennsylvania, 
Ohio, iiorthern and Southern J7ert Virginia, Maryland, Virginia, Eastern 
Kentuck^A and ITorthern Tennessee, (*) 

It is stated in the "United iiine '.Torkers Jo-ornal of October 1, 1933, 
Vol. 44, No. 19, Page 5: 

"The basic contract between the- United Mine IV^rkers of America 
and, the tv.'O Appalachian associations of operators covers aporox- 
iinately 300,0,00,000 tons of annual production of bituminous coal and 
314,000 men emplo-^ed in the industry. Henceforth, all of this coal 
will be produced -"aiider the terms of this Union contract and all of 
the 314,000 mine workers employed in those mines will be members of 
the United Hine Workers of America. This will give the Union a total 
membership of proba.bly 550,000 to 600,000." 

The Agreement was approved by the President and when doing so, he 
added this clause thereto: 

"In a^oproving this agreement, it is with the imderstaiiding that 
the hours and wages and conditions of einployiaent recited herein nay 
also, be ao-plied to the emplo-ees who are not rarties hereto; and that 
the requirements of Sec. V-a of the F.I.H.A. will be complied with in 
carrying out this agreement." 

By virtue of the President's Executive Order of September 29, 1933 
(Ap"oroving Revised Code of Fair Competition for the Bitujninous Coal Ind- 
ustry) , The Appalachian Agreement was incorporated in the code as part of 
Schedule "A". The following is quoted from that Executive Order: 

"(1) Schedule "A", as revised and attached to this order, is hereby 
approved as the schedule of basic minimum rates approved or 
' • ■ prescribed by the President and incoriDorated in the Code of 

•Fair Competition for the Bituminous Coal Industry, as provided 
in Article IV of sold Code." ..... 

Article IV of the Bituminous Coal Code, referred to in above quota- 
tion, provided: 

"The basic minimum rate for inside skilled labor and the basic 
minimum' rate for outside common labor shall be the rate hereinafter 
set forth in Schedule "A" for each district therein described for 
each such classification of labor, with the understanding that other 
classifications of employment will maintain their customary differ- 
entials above or below said basic minimum rates and tliat payments 
for work performed on a tonnage or other piecework basis will main- 
tain their customsj-y relationship to the -oayraents on a time basis 
provided in said basic minimum rates." 



(*) Sec Appendix "PP" for copy of this Agreement, 
9759 



-50- 

Scliedwle "A", as noted atove, set forth the hasic minimui-i inside 
rates per day and per hour for skilled lator and "basic outside rates per 
day and per hour for common lahor for all Districts in the entire industry, 
vith the added s-oecific proviso that differentials hetTreen Districts in the 
hasic nininun rates, set, uere not considered as firing permanent rage 
differentials or estahlishin-c precedents for future wage scales. 

For certain competitive Districts (such as Illinois, Indiana, etc), 
Schedule "A" set "basic wage retes already in force as a result of Pre-exist- 
ing Union Contracts, and for the Appalachian Districts the "basic rates set 
were those -'rovided for in the newly negotiated Appalachian Agreement. 

The Agreement provided that: 

"District agreements shall 'he made dealing with local or 
district conditions, and it is agreed that such district agree- 
ments shall en"body the "basic rs.tes of pay, hours of worh, and 
conditions of employment herein set forth, and all specific rights 
and o"bligations of Operators and l.iine 7or''ers herein recognized." 

Pursuant to the a'bcve quoted -orovision, a nuvoer of so-called "District" 
Agreements ''^ere negotiated, which not onl:/ em"bodied therein the terms of the 
"basic Appalachian Agreement, hut further set forth soecific v^e-f^e rates for all 
classifications of emplojrment for the respective Districts defined in tha.t 
Agreement. 

B;^ its terms, the Appalachian Agreement was to "become effective on 
Octo^oer 2, 19SS (the code though a'o-iroved Septen"ber IS, also "became effective 
on Octo"ber 2) and was to continue in effect until April 1, 1P34, with further 
■orovision "being made for a joint conference "between signatories prior to the 
expirp.tion date for the purpose of determining what, if any, revisions of 
wages, hours and differentials might oe desira'ble at that time. 

A second and revised Appalachian Agree lent was signed on i'arch 29, 1934, 
and wo.s entered into between eleven operators' associations on "behalf of each 
member thereof in the respective eleven Districts, "and Harlan County'- (Kj.) 
coal operators signatory hereto, and "Virginia, coal ooerators signator^r hereto, 

party of the first part, a,nd the United 

Tine Hor'rers of America and Districts 2, 3, 4, 5, 6, 16, 17, 19, 28, 30, and 

31, i ', party of the second part (Few Districts of the United 

■;ine 77or]'ers of America may be established in this territory)", (*) 

The I'arch 29th Agreement modified somewhat the nrovisions of the earlier 
agreement. The maximum i.vork hours of the original agree^ient, were reduced 
from 8 to 7 per day and 40 to 35 per week; and basic wage rates for the dis- 
tricts defined in the Agreement, were raised. Acting jointlj^, the Union and 
the operators who subscribed to the Appalachian Agreement, sought to have the 
Bituminous Coal Code amended so as to conform with lorovisions of the new agree- 
ment. A recommendation to this effect was made by the Code Authorities for 

(*) See Ap:oendix "0,0,-2" for copy of Agreement. 



9759 



-51- 

the Eastern a;.id Uestern Districts of Pennsylvania and the District of 
Oliio, to a conference of the national 3 i tun i nous Coal Code Authorities 
then "oeing held in 7ashin;Tton. (*) This reconmendation vas taken luid'^r 
adviseient o:'- I'TIiA officials and on i'arch r-ll, 1S34, Aj:ienci-^.ent To. 1 to 
the 3itw:inous Coal Code ttpg ap-oroved, "by Orfer of the Ar linistrator for 
:~JA. It icce certain a.riendnents to the "basic rafe rates in Schedule 
"A" raisin" then for nost districts and at the sa^e tine, the ■,■lasi^uJn 
nor'- -ee': in cJ.l districts ^o.s shortened fron 40 hours -ler weeh, or 8 
hours per day, to 35 hours per nee'.:,, or 7 hours "cer day. 

Aj.-ticle I"V of the code ras also anended to -orovide th?,t fie revised 
"basic rates set forth in Schedule "A" nere to "be effective fron April 1, 
lCr;4 to Anril 1, 1935. 

In a fer districts therein the Union had not succeeded in organi-'in'; 
effectively — for er-caniole, TTestern I"entuc]'y,, Alabama, and Southern 
Tennessee, operators vigorously protested the Code Araendnent of I'arch Tl. 
Pu"blic hearings nere held and pursuant thereto, Anendiient I'o. 2 to the Code 
nas aooroved on April 22, 1S34. The latter affimed, thoiif'^h -nodified to 
so:-ie extent, anendjnent Ho. 1 of .";a.rch 31. It did not '.a'-e 8:aY cha,n.'H:e in 
m&ximu'-;! hours, "but prescri"bed a 'Ten Schedule A." The inside s'-'illed nin- 
iiVLT rate per day for "iTestern Kentuch3r (District E) '"hich nas raised '"oy 
Anencjjient To. 1 from Jd^.GO to $4.60 remained at that level.; "'out in District 
J (Alabana,, G-eorgia and Southern Tennessee), the nininuri nas reduced fron 
$4.60 to '^3. CO; and in District J-1 (conprising a. fevr certain counties in 
Tennessee) the ninintm rate prescri'bed v^as $4.24 as contrasted ^fith a $4.60 
rate set "by Anendnent I^o. 1. 

The TTestern Fentuc;:;/ Inne owners s"a"bsec>uently initiated le-'^al proceed- 
ing's to restr:^in the 'i"3A fron enforcin-; the nen na^e schedules a"-id o'otaaned 
a I'ederal Court injunction, "but the case "nad not reached tlie llnited Sta.tes 
Supre'-ie Court v^hen the Recover^'- Act '-as in\'-ali dated on lay 27, 1935. 

~y-y Aiendnent I'o, 3 to the Code, a,p")roved June 4, 1934, the basic viin- 
inu' rates of or-- for day la'bor in certain :<ines (shaft, draft and slone 
nines only) in District G- (hiscouri, Kansas, Arhansas P'td 0''-;lahona) as set 
forth in Sc/iedule A v;ere reduced in order to adjust the differentials "be- 
tneen District G and ot.ier competing ciistricts, 

Tlie Ap'jalachian A5;reene;-t of ' arch 29, 1934, t)v its terns "beca.ne ef- 
fective or Anril 1, 1934, and rrs to continue in effect until March "1, 
1935. It provided the "basis for and ras nade a loart of :any T7a,ge a':ree--ents 
for the various districts rrithin the ATDpal.-.chian Area, the nu'"i"ber ne,^otiated 
in 1934 oeinA' in excess of t-.e nu'iber promulgated in 1933. Lihenise, quite 
a nu.m"ber of District Agreements nere entered into "bet-'-'ecn o-oerators and the 
Union in various districts a,nd divisions nithiji the industr;'^ other than 
those nhich \7ere covered '"ay the A'o;oalachiaji Aj'^reement. Time and s-oace '"ill 
not nermit of an extended discu.ssion of these many District Agreement, all 
of T'hich are set forth fully in a volixme pu"blished "by t"ne United Kine TT'ork- 
ers of America, end to '^hich the reader nay refer. (**) The net result nas 

(*) See United "ine 'Tor'-ers Journal, A^r. 15, 1934, "Vol. 45, ITo. 8. 

(**) "i7a-e A,-;reenents - 1934". 



that the industry hecaT'e r.lnost conpletel^/ unionized and in onljr a fer 
isolated sections xrere enployer-enployee relations not govern\^a'.'- hy 
Union TJage contracts. 

One of the proT'-isions of the Appalachiaji Agreenent was that a Joint 
Conference of representatiTes of the various signatories thereto T/as to 
"be held in 7ashington oh Fehruary 18, 19.35, "to consider what revisions, 
if any, shall he made in this Agreement as to hours, '-'ages rnd conditions 
of eTniDloyrient, and to establish stxch differentials hetween districts as 
the Conference finds in the report of the Joint "Jorth-South Differential 
Connissio •-, hereinoefore pro'^'ided for," 

T>as conferen'^e r'as held as scheduled out an impasse was reached in 
efforts to reconcile the conflicting demands on the "orrt of the o-oerators 
and tne Union. Tho Union was insistent upon a revised upward scale of wages 
in a ne^ a-'^reenent, to which the operators refused to accede. After pro- 
tracted discussions and negotiations, with threats of a general ■ strihe of 
miners "being voiced meanwhile, it was announced on Farch 31, 1935, that 
representatives of the Coal Operators and the United I'ine ^or'-ers had in~ 
for-ied the rations! I idustrio.1 Recover;' "jBoard t'lr.t theA"- '-'ould agree to it 
proposal to anend the Bituminous Coel Code so ar. to e::tend the operations 
of oJl of its proviFions to June 16, 1935, the exniration date of the 
reticnal Industrial Recovery Act. (*) Thus, the basic wage rates set liy 
Schedu].e A of the Code and the terns of the Ap'oalachian Agreenent were ex- 
tended to the sa-.e date. 

Subsequently, several extensions of the Agreenent for short intervals 
of tine were agreed upon. In Se-otenber, 1935, no final determination having 
been reached, a general striire of all rainers in the Bitijmihous Coal-In- 
dustrj'- ws,s called by the Union. However, within a weeh thereafter, the 
disputants negotia.ted another revised Appalachian Agreenent, which was 
signed on Septenber 25, 1935. The latter provided for increased basic wage 
rates. (**) 

As to ad^iinistration of the Agree-ients, provision -was na6.e therein for 
agencies and machinery for settling disputes and grievances. 



(*) See IRA Press Release, To. 10753, of i:arch 31, 1935, in the Ap- 
pendix hereto. (Appendix "RR" ) 

(**) See AmiDendix "SS" for cop;'' of Agreenent. 



9759 



CHArTLR VIII 

Z??:]CT CF SCinCCTITZR DUCISIOJI UPON 
Sl^CTIOilS --(a) MB 7(b) OFK.I.il.A. 

3y reason oi'the decision handed do\/n by the Supreme Co-'ort oi the 
United States on May 27, 1935, in the Schechter Case '(*), the 1-Tational 
Industrictl Htcovr-ry Act wo.s invr.lidated on two groimds, viz., (l) that 
there had been an iunroper deleti'ation of ler^isla.tive power by Con-^^ress 
to the President to approve or prescribe Codes of Fair Competition; and 
(2) th;:.t Con,:^ress may not re.giilate intitfastate transactions that hs,ve 
only" an indirect effect on interstate coriiiaerce. 

The qu-estion arose as to v/hat effect, if an-^ the Schechter Decision 
liad upon Sections 4(a) and 7(b) of the Act. The question was submitted 
to the Le^ai Hesearch Section of the 2evievf Division, NRA, pursuant tc 
which a memo rand\3x.i of law was issued by that Section under date of October 
21, 1935. A copy of this memoranduru cf law is made a ;oart cf this re- 
port and will be found in the Aipendix hereto (**). It is sufficient to 
state here th..t the concTasions reached were as follo\/s: 

(l') The Schechter decision did not chan;[^e the status of 
Section 4(a) . w'hatever validity it had prior to that 
time, it still retains. 

(2) The Schechter decision casts much doubt on the validity 
of Section 7(b). To ,;;ive the section any validity, 
the dependent and controlling- clauses must be deleted, 
rendering the remainder ineffective. 



(*) A.L.A. Schechter Poultry Corp. v. U. S., 295 U.S., 495 (1935). 
(**) See Appendix "TT". 



"54- 

chapt:3i IX 

PROPOSED VOLmiTAP.Y AGSnEivEWTS 
UM)E2 4(a) OF MiEUDED WIRA. 

By a Joint Resolution of both Hoiises of the 74th Gongrcsc (p-nhlio 
Resolution Ho. 2G) , approved J-'one 14, 1935, The National Industrial 
Recovery Act v/as a^aended, and certain provisions of J'itle I thereof, 
v/ere extended until April 1, 1936. 

Section 2 of the amending; "Resolution reads as follows: 

"SEC =2 All the provisions of Title, I of such 
Act delei^-ating power to the president to a'^prove or 
prescribe codc3 of fair comietition and -oroviding 
for the enforcement of such codes are hereby repealed: 

" Provided , ffiiat the exemption provided in sec- 
tion 5 of such title shall extend only to a£;reements 
and action theretmder (l) putting into effect the 
reauirernen:ts of section ?(a), including luiniLUtni 
wages, maxiimijji ho"arSj and -orohlbition of child labor; 
and (.]) prohibiting unfair competitive practices 
which offend against existing la£-', incltiding the 
antitrust laws, or v/hich constitute unfair methods 
of co.-ppetition "UJider the Federal *"Tr£Lde Comrnissicn 
Act, as ai.iended." 

In a letter of Aur.'u.st 24, 1935, to Senator Hrirrison, Chairman, 
Pincncc Conimittce si the Senate and Congressman R. L. Doughton, Chairman 
'Jays and Lleans Coiu.attee of the House, the President stated,, in part: 

"Pending determination by the Congress of 
v/hether further indufjtrial legislation v/ill be en- ■ • 
acted, it is hoped that industrial groups will, in 
increasing numbers, avail themselves of the'pr'ovi- 
sions of the Joint Resolution extending National 
Industrial Recovery Administration which permit 
ar'::reements (l) putting into effect the requirements 
of Section 7 (a), minimuiii wages, maximiun hours 
and prohibition of child la^or, and (2) prohibiting un- 
competitive practices v/hich offend against exhi sting 
law. Such agreements, when a-nprovcd by the Presi- 
dent, as to mjxtters covered by the Joint Resolution, 
are exempted ex-oressly from the penalties of the 
••■ntitrust lav/s, including criminal proscctutions, 
inj-onctions and trebele damages. By such action, 
industry can -undoubtedly do much to preserve the 
very substantial gains made while the codec were in 
effect. Amplications for approval of s' ch a:^;ree- 
ments should be filed with the Federal Trn.de Com- 
mission. 

"Industry may continue to talzc advantage of the 
fej-niliar tr<".de practice conicrence jrocedure of the 
Federal Trade Coiiomission." 



-55"- 



JoO. 



The President, by :]xecutive Order Ho. 7192 oi Soptemljor 23, 1 
dele^-ated to the Federal Trade Coumlssion authorit;/ to approve certain 
trade -practice provisions contained in volrnitar-r agreements, submitted 
-oursuant to Section 4'Aa) oi the l-I.I.F-.A. as extended. 

A Y/hite House Announcement of September 30, 1935, outlined the 
President's wishes with regard to the manner in which the Federal 
Trade Commission and the HSA \;ere to cooperate in handling voluntary 
agreements under H.I.il.A. (*) 

All such --iroposed acreements for voluntc.ry industritil cooperation 
are filed with the Federal Trade Co:'J=dssion. 

If in addition to provibions for collective bargaining-, ma.xiraum 
hours, minimum \7a;;:es, etc., as required by Section 7(a) of N.I.R.A., 
any such a£;reement also contains trade .practice provisions covered 
by numbered clause 2 of the provision of the Joint Kesolution 
extending IT. I.E. A., viz., provisions which prohibit "unfair competitive 
practices which offend against existing law, etc.," each of the two 
classes of provisions rnicst appear in a separate title — for example, 
"Title (a) — ^Labor Provisions" and "Title ("0 — Trade Practice 
Provisions ." 

anie title containing "labor provisions" is referred by the Federal 
Trade Commission to ilRA. for its findings of fact and recornmend.ations as 
to approval. ' The Division of 3iJ.siness Cooperation hs^s been set up 
within HEA for the purpose of handling the proposed labor provisions. 
The lorocedure follov.'ed with respect to consideration of proposed labor 
"irovisions is siiiiilar to that which was used by NBA in the past in 
connection with proposed codes. 

The thirteen industry divisions of IIEA which existed prior to 
the Schechter decision, have been reduced to five sections, iacli draft 
of proposed lai)or provisions is "olaced in direct charge of a Deputy 
Director oi' one of those five sections, who thereafter is responsibl" 
for subsequent action on the proposal. He consults with and receives 
comaents from advisory units representing indoastry, labor and consumers 
and also from a legal adviser. A coraiparison of the proposed provisions 
is made with the labor provisions in any approved code under which 
the industry may previously have operated and the degree of compliance 
v/ith similar proposals, as evidenced fram HRA experience, is investigated, 
Legal, statistical and comroliancc records are available to the Deputy 
to assist him in determining to what extent, if any, modifications of 
the --JroposaAs are necessary and the effect the proposed agreement will 
have upon employment. V/hen it a-opears. that the -proposed labor provisions 
are such as to conform to the policies of the A&t, the Deputy, after con- 
ferring with the proponents and the Federal Trade Conmission, sets a 
date for an open hearing, due notice of v/hich is sent to all Imown in- 
terested parties. At this hearing, opportunity is afforded all inter- 
ested parties to be heard, either through oral or written statements. 



(*) See Appendix "UU" for copy of Annouiicemcnt , 



9759 



"56- 

HeiDresentative s of tiie vr.rious JfRA advisory groups also participate in the 
hearing. Post-hearing conferences are then had, after \.hich the Deputy 
submits a report, analysis, findings of fact and recomiaendations with 
respect to Title A of the proposed agreement itJo the KRA. Administrator 
(*), and v/hen approved bv the latter, it is forwarded to the President, 
for his final action, via the Trade Commission. 

Any proposed Agreement which includes a Title containing Trade 
Practice Provisions is submitted to a Board set up \/ith"in Trade 
Comi.:ission and com;iosed of two Commission appointees and one IJRA appointee. 
Tliat Board first determines whether the proposed provisions come -oro- 
perly under IIIRA - as extended. If the decision is' to ' the contrary 
the proponents have the alternative of v.'ithdrav/ing the -sroposals or 
reqii.esting that they be considered by the Tre.de Commissicn in accordance 
with its established Trade Practice Conference procedure. 

If the" Board determines tha.t the "oroposed provisions arc covered 
by the Joint' Resolution extending IIIRA, it proceeds after notice, hear- 
ings and other procedure duly luvd, to rnaice its findings of fact and 
recommendations to the Trrde Co!.imi scion. If final deterrniAction of the 
Commission be in flavor oi disapproval, an order to that' effect is made 
under the authority vested in the Cox.i.iission by Executive Order No. 7192 
of September 26, T9o5. 

If aiiproval is favored, the CoiTunission transmits to the President 
the laoor provisions and. r e co mine ndat ions of HRA, if favorable, together 
with a statement as to the Comnission's a^iproval of the trade practice 
provisions, for the President's action on the labor provisions. The 
Comiussion then is to av/ait receipt from the President of notifications 
of his action on the labor provisions cmC. when notified of his epproval 
thereof, the Co:iimission under authority of the same Executive Order above 
referred to, shall issue an order approving the proposed trade practice 
provisions. 

After approval by the President and the Federal Trade Commission, 
the Agreement becomes binding upon the "oarties thereto in accordance with 
its terms. Should the President di£.approve the labor provisions of a 
proposed Agreement, , the proponents' thereof are given the option of 
either T/ithdrav;ing the trade practice provisions from consideration, 
or requesting the TradG Commission to consider s-ach provisions 
under its established trade practice conference procedtire. Proponents 
of an Agreement may in the first instance, file with the Trade Commission 
under NIRA extended, a title containing labor provisions and also a title 
■containing trade practice provisions covered by Clause 2 of the pro- 
vision of Section 2 of the Joint Re'solatioh extending NIPA, and at 
the same time uiay file other and additional provisions not entitled 
to exemptions under said Joint Resolution. In tli,vt event, the Trade 
Commission acts upon such other and additional .provisions under its 
established trade pr..ctice conference procedure. 

(*) As an illustr.-tion, see copy (f -leport submitted by E. 'V. Dahlberg 

Deputy Director, Re; proposed la';or agreement submitted by Ca.ndle ivifg., 
Industry, which is appended hereto and marlred A;)pendix "W" 



9759 



-57- 

Vfhile the la.i,)or aiid trade practice provisions sxe vaid.er consider- 
ation, tiie ijroponent of the agreement may submit to the respective 
:~ovei-nmental agencies considering them modifications of such ..revisions 
or j-nay a^^ree' to proposed modifications. Applications for amendments 
after approval shall he handled in the same manner as original 
applications. 

Thus far, there has L)een trcuismitteu to NRA. for its consideration 
and £ippi'oval, the labor provisions (Title "A") of ;oroposed Agreements 
under KIHA, extended, vvhich have been submitted by the follov/ing 
industries: 

Asbestos l-.ianuf ac.tiiriijg 

As ihalt Shiji^-^le & F.oofing Manufacturing 

Braided ilon-Zlastic 

Candle Manufac'turing 

Ex;3andin.:; ^ Specialty Paper Products 

Fertilizer 

Heck & Sl8.g Y/ool i.'Ianufacturing 

Solid Braided Cord 

V.holesale Tobacco 



Kearinys have been had or Scheduled on all but three of the above 
the Asbestos Llsjiufacturing, Braided lon-Slastic and Solid Braided 



Cord 



As yet, none of the oroposed agreements have received final approval 
of the Presitlent. 

Pinal reports .have been made by Deputy Section Directors to the WA 
adiiiinistra,tor, recomj-iending approval of the proposed labor agreements 
for the ".fnolesale Tobaccs, Ex-oanding and Specialty Paper Products, and 
Candle Hsmiuac taring Indi--.strics(*) 



(*) See Appendices, ""JTf" "XX" and "YY" respectively, for copies of these 
iro'oosed rgreements. 



9759 



CHAPTriR X 

?ii3irGs 0^ corcLusioNs ,;.. '"■,, ' i . ,■ '.- '■ .'./ ■" . . , . 

The most significant deductions evolyed..f rora .tlxis ;^,r.t-a(rjy vhich the/ 
rriter believes to be sui'f iciently substrnttatad by the facts, set .forth 
in the preceding: chapters, are summari'zed herewith: ■■..,■: 

(l) Prior to the Schecnter Decision, the formulation and adminis- 
tration of "voluntary"' eaid "mutual" agreements, -.mrpuant 'to Sections 4(a) 
rnd T'Cb) , rer.-pectivel'^, of Title I of the rational Inoustrial Hecoveir^A Act, 
constitxited a pnase of 'i~Rk. activitv which v/r,s essentiallj'- incicental or 
supplementary to the major phases of code-mrking and code p.cministration. 

(?) Section 4(a) of the Act afforded broad -oossibilities for varied 
t-roes of volunt' n'- agreements, and in the cour'^je of the Act's rdrainistra- 
tion, such -oossibilities \ie::e rather freel;-'- utilized. 

(5) On the v/hole, the vol^ontaD-j^ egre^ments promulgated under au- 
thorit^r grpnted in Section 4(a) aiced to soine ertent at lea-st in the at- 
tairment of V?A oojectivos. In this regcrd, the Pre e.i dent' s Reemployment 
Agreement maj- be said to have pla-^ed the m.ost conspieuous role, in that 
it brought about by voluntar}'- action, the establishment of a national 
minim^um ^'age a.nd majzimiira. v/ork veelc for;.a:large section of industry. 

(4) The general eff ectivenei;'? of volitntar'' agreements binder Sec-> ■ 
tion 4(a) v.'ould have been considerably enhanced had these defects or r-erlc- 
nesses incident thereto r.ot e^risted^- viz., (a) lack of statutpr^;- means of 
enforcing compliBnce vitli the terms of such agreements; and (b), errors of 
administrative [oolic'"- and -orocedure. 

(5) In tiie light of FRA e:-"ieriance,. volunt;>r-ir agreements provided 
for under FIRA, ag exteri'dted, can not be relied- u"3©n exclusively as the 
solution of the problems v/hich gave birth' to ITRk,- ■,•'-,..■• 

(6) By contrrst v;ith Section 4(a) _, tlie Agreement provision of 
Section 7(b) afforded rather limited possibilities. It authorized the 
establishment of labor standards byme<ahs of "collee'tive. bargaining agreed 
ments betveen representative labor and eraploj'-er groups only in those indus- 
tries v/here collective bargaining was alread^^ highly developed. 

(7) Section 7(b) vr s pub to considerable ure under the Bituminous 
Coo.l Industry and the Construc,»tion Industr-/ Codes and as a conseouence 
thereof, the number of vjrge earner<; working under collective agreements 
negotiated in their beha-lf by Ipbor unions, increased considerably under 
IHA. 

(8) By prescribing the sfune i?enalties for violrtion of collective 
bargaining agreements as \.'ere applicable to code violations, Section 7(b) 
had the effect of vesting such agreements with a legal stp,tus tho,t did not 
exist prior to ITBA. This new status \/as further augmented by the Construc- 
tion Code, which provided that collective wage rgreements after a^oroval 

by the President in accordance with Section 7(b) of the Act were to be 
binding uioon all employers in that industr/ v.'ithin the area defined in such 
agreements, whether parties thereto or not. 

9759 



-59- 

(9) Area Agreements loiicier the basic cooe for tiie Gonsti-action Indus- 
try vera confined to the ouildinfT trades, crafts vhere labor '""as i.'ell or- 
ganized and "'ere also confiner in a^-^plication mainly to metropolitan areas 
'Tlier? Irbor unions :'"ere most po'.verftil. 

(10) Ontstrndin'^ iinpe dire ants to a more corTolete saccess of the Area 
A/:reement prOt:ra;n urider the Constraction Code vera: (r) lack of a clearly 
defined adi-ainistrptive "nolicy re£:!;arriin;^ mimerous duesti one which arose in 
connection therewith; and (b) failure on the.pprt of I^Jl to give ^Tider 
encouragement to the har.dling of labor problems by means of collective 
agreements. 

(11) Section 7(b) t'fs more extensively a'oplied to and achieved its 
greatest prominence in the Biturdnous Coal Industry.'-. the Appalachian 
Agreement, '".'hich was negotiated in a.ccordance xrith the terms of Section 
7(b.) T7as hailed by its sponsors as the greatest in magnitude and impor- 
tance that hrd ever been negotiated in the histor<'- of colls ctive brrgain- 
ing in the United States, and it was further referred to as marking a new 
era. in the task of stabilizing and modernizing the economic processes of 
the Bituminous Cool- I ndus.t r;;- . ^ It -ondeniabl:/ proved a potent factor in 
inducing and maintaining mii ted action of labor and management, which was 
ope of the stated objectives of the Recovery Act, anc' enabled mine workers 
throughout the industr;'' to secure higher '..'ages and better working condi-. 
tions than, had been their lot ririor to ii^RA. 



9759 



-6C- 

chapt::;r xi 

SUGGESTIOFS ALTD RECOMlIEiTOATIONS 

Assuming that neir legislation era"bracing in v/liole or in part the tasic 
objectives of HM, may be contemplated or proposed, the following sugges- 
tions and recommendations are advanced in the light of the facts developed 
as a result of this study: 

The new Act should prescribe definite standards or principles to 
s-uide administrative action in matters of oolicy a.nd procedure; and the 
rdjninistrative organization set up to carry into effect the legislative 
intent of the statute should proceed in the manner and within limitations 
of the guides so set, 

Hastil;'- conceived and ill advised rules and regulations as to policy 
pjid procedure, which necessitate numerous subseauent changes and invari- 
ebly cause confusion-, should be. avoided. 

Direct means of enforcing compliance with the terms of voluntary 
agreements should be specified in the new Ac.t. As an alternative to 
judicial enforcement, it is suggested that the administrative agency be 
vested with .statutory authority to create a compliance mechinerA'- based on: 
(l) a mandatory liqu.idated damage system of restitution for trade practice 
violations, with certain criteria also provided to aid the administrative 
body in determining what would constitute a reasonahle amount of "liquidat- 
ed damages" for such violations; and (2) a s^^'stem of mone'r r^aynents to em- 
ployees as restitution for sums due them on account of Ipbor violr.tions. 

In view of the clearly recognized utility of labels and insignia as 
effective enforcement devices under iIRA, it would seem both feasible and 
desirable to have the new Act provide for au.thority to include ma.ndatorj'' 
insignia provisions in agreements. 

Under the I'ew Act, employees should be specifically authorized to 
bring sij-it directly to recover wages due them as a result of v/age viola- 
tions of an agreement, perhaps by permitting "third party beneficiaries" 
to sue. Such sToecific authorization would seem preferable to leaving the 
matter to the var'-ing rules of ordina.ry contract law in the various State 
and Federal courts as a-rolied to suits by third party lienef iciaries. Such 
salts should be permitted in either Federal or State courts and further 
provision should be made for representative suits. 

Injunctive relief should also be -orovided for the breach of agree- 
ments, by authorizing comx)etitors in a given trade or industry who had 
subscribed to an agreement to bring action to enjoin violations thereof 
by one of the other signatories. 

Agreements should be authorized and approved only when assented to by 
a verj'- substantial maj.orit"'- of members of a given trade or industry and 
only after a positive shoving is made that no inequitable hardship will re- 
sult to non-assenting members of such trade or industn,^. 



9759 



-61- 
AFPSIiPIX I. 

Section 4(a) and 7(d) of the IvTational Industrial Recovery Act both 
provided for agreements requirins; the approval of the President, there- 
fore the original source of information on agreemenc!? under these Sections 
viras contained in Executive Orders approving such agreements or delegating 
the President's authoritj'- to others to approve them. Another source of 
information used in locating agreements under these Sections V7as the press 
relee^ses of the Public Halations Division of the FRil. 

After determining the different agreements made in accordance vrith 
Sections 4(a) and ?(h) of the MEA, the factual data and information relat- 
ing to them ^''a.E developed "by: 

(a) Personal intervie\7s '.vith ¥Rk, and former ICRA, personnel formerly- 
assigned to the industries rhose members were parties to them. 

(b) Study of ITIA files, code histories and review studies relat- 
ing to these subjects. 

(c) Publications regarding the I'JIIA as those of Brookings Insti- 
tute, United i'.'ine I'/orkers Journal and Treide Association 
publications. This. Study does not attempt detp.iled consider- 
ation of the effects of the various agreements. 



9759 



-62- 



NATIONAL RECOVERY ADMINISTRATION 
Bulletm No. 8 



July 20, 1933 



THE PRESIDENT'S REEMPLOYMENT PROGRAM 

(Agreements with the President under section 4(a) N.I.R.AO 

1. Names 

To save space and time, we will call the National Industrial 
Recovery Act N.I.R.A., and the National Recovery Administration, 
N.B.A. 

2. Industrial self government 

Bulletin No. 2, dated June 19, 1933, shows how to submit codes of 
fair competition under N.IJRA. sec. 8(a). It permits industries 
and trade associations to organize for self government, to increase 
employment and improve labor conditions, to wipe out xmfair prac- 
tices, to discipline themselves, and to stabilize their operations. 
Nothing will be permitted to slow up that process. It must go fast 
if business is to do for itself and for the country the great good offered 
by N.I.RJL It will proceed as promptly as codes can come in and 
be heard. Nothing in this bulletin and nothing in our plans or state- 
ments change that process, which will go on without any regard what- 
ever to the new and additional plan set forth in this bulletin (No. 3). 

8. Codes and agreements distinguished 

But swift-moving changes require swift action. A rapid rise in 
prices and mass production is going on. Mass purchasing power 
must rise as fast. The President has stated his policy to do this by 
prompt shortening of the work week and raising of wages for the 
shorter week. Rules governing hours and wages of labor must be 
included in every code and codes must continue to come along as fast 
as possible. But whole industries must organize and have many con- 
ferences before codes can be worked out and that takes a long time. 
In this national emergency, we cannot delay broad reemployment 
while we wait for codes. If we are not to have a setback in our 
returning prosperity and if we are to take this chance to get out of 
this depression, we must act more quickly to get more and fatter pay 
envelops to our workers. We can do this under section 4(a), 
N.I.R.A., which, in addition to codes, permits trade groups and also 
individual employers to make AGREEMENTS WITH THE 

3133*— 83 (1) 

9759 



i 



-63- 

PBESIDENT HTMSETiF to do their part in this great eflfort. We 
are going to use this additional power. This bulletin sets forth this 
swifter plan which is in addition to (and not in place of) codes. 
These new PRESIDENTIAL AGREEMENTS should be sent in 
by all individual employers at once as provided in paragraph 7 
of this bulletin, and codes should be sent in by industries and trade 
associations as fast as they can be prepared as provided in Bulletin 
No. 2, N.RA. 

4. Time limit on codes 

In order to assist these trades and industries which are not suffi- 
ciently organized to present their codes in representative fashion and 
to help compose the difficult problems in other trades and industries 
where economic differences have delayed the submission of codes it is 
assumed that to all trades or indmtries which home not aubmitted 
codes under sec. S(a) iy September 1, 19S3, the President will iegvn 
to hold hearings under sec. S{d) as fast as proper notice can, he given 
and hearings ammged. 

So much for codes ; The plan is to create Nation-wide reemploy- 
ment by PRESIDENTIAL AGREEMENTS is as foUows: 

5. The President's reemployment drive 

A truce on selfishness. — Before Labor Day — six weeks away — ^it is 
possible to solve the problem of reemployment through individual 
AGREEMENTS WITH THE PRESIDENT. But to do this the 
country must act quickly, vigorously, and boldly, as one man — get 
together in one powerful effort — declare a truce on selfishness. In 
this mass attack on depression there is a clear-cut part for every 
group. Members of each group are invited to become members of 
N.R.A. on the plan set forth in this bulletin. 

The employers' part is to act at once and all together to submit 
and scrupulously comply with AGREEMENTS WITH THE 
PRESIDENT to shorten hours and raise wages and to cooperate 
with employees in peaceful adjustment of differences. Th» way 
to make these agreements is shown in paragraph 7. 

The employees' part is to do their best on the job and to cooperate 
with N.RA.. and employers in peaceful adjustment of differences. 
More can be now done for workers through this cooperation of 
126,000,000 people than can ever be done by discord and dispute. 

The pubUo's part — and especially the part of women (who control 
the bulk of buying) — ^is to support aU those employers and employees 
who do their parts to put breadwinners back to work, 

6. Employers' badge of cooperation 

For the public to do its part, it must know which employere have 
done their part to put people back to work by making these AGREE- 



9759 



-64- 

IVIENTS with the President and by codes. Every industry and 
e-v'ery employer who has agreed with the President on this plan, or 
wbo has had approved a code covering the vital subject of reemplo7/- 
meiit, will be enrolled as a member of N.R.A. and given a certifioate 
and a Government badge showing the seal of N.R.A. and the worrjs : 
" Mevnher NJt.A. We do ow fourth It will be authorized to show 
this btidge on all its equipment, goods, commimications, and premises. 
Lists of all employers authorized to use this badge will be on file at 
all post offices so that any misrepresentation by unauthorized use of 
N.E.A. badges can be prevented. 

7. Employers' agreements with the President 

During the three days beginning July 27, letter carriers will 
deliver at each place of business a message from the President, 
accompanied by a copy of the form for the President's Reemploy meni 
AgreemeTht; a certificate of compliance form, and a return envelop 
addressed to the district office of the Department of Commerce. 
Any employer who has not received this material by July 29 can 
obtain it from his local postmaster. 

Each employer who wants to do his part will sign the agreement 
and mail it in the return envelop. 

On or after August 1, each employer who has signed his agreement 
and put it into effect may sign the certificate of compliance, take 
it to his post office, and receive the posters, etc., which evidence his 
membership in the N.R.A. 

The district offices of the Department of Commerce will prepare 
each week a list of agreements received from each town, and will 
send one copy to Washington and one copy to the post office, where 
it will be posted for public inspection. Postmasters will send certifi- 
cates of compliance to the district offices, where they will te checked 
off against the list. 

8. Consumers' badge of cooperation 

Every consumer in the United States who wishes to cooperate in 
the President's reemployment drive and be considered as a mender 
in N.R.A. may at any time after August 1, 1933, go to the authorized 
establishment in his locality (to be announced later) and sign a 
statement of cooperation as follows: 

"/ will cocperate in reemployment by supporting 

omd patronizing employers and workers who are mem- 

bers of N.R.A.'" 
Any such signer will then be given and may thereafter use the 
insignia of consumer membership in N.R.A. 

9. District recovery boards 

There is hereby created one district recovery board of seven mem- 
bers for each district of the Department of Commerce to be ap- 



9759 



-65- 

pointed by the President. The board will consist of one person 
prominent in each manufacture, retail trade, wholesale trade, 
banking, farming, labor, and social sei^ce who is willing to vol- 
unteer his services without compensation. The local district man- 
ager of the Department of Commerce will serve as secretary of <^e 
board. The board will consider, advise, and report to NJLA. on 
the progress of the execution of N.I.RA. and will pass upon such 
matters as shall be referred to it for action by N.BA. 

10. State recovery boards 

There is hereby created for each State a State recovery board 
of nine members from each State to be appointed by the President. 
The board shall serve without compensation and shall select its 
chairman and secretary from among its own members. 

The memberships will be truly representative of commercial, indus- 
trial, labor, and civic interests of each State. The State boards will 
advise and report upon the execution of N.I.R.A. in their States and 
receive and act upon all matters referred to them by N.R.A. or by their 
district boards. Each governor will be notified of the appointment 
of the State board and it will meet at the call of the governor. At 
the first meeting it will organize and decide upon and promulgate its 
own rules and procedure. 

11. State recovery council 

There is hereby created, to be organized by and to serve in cooperar 
tion with each State board, a State recovery council. Upon applica- 
tion to the State recovery board by any State labor, manufacturing, 
trade, civic, social-service or welfare association, organization, or club, 
the presiding officer thereof is entitled, ex officio, to membership on 
the State recovery council. The function of the council is to recom- 
mend to the board any necessary action with regard to the organiza- 
tion presided over by any member of the council, to request the serv 
icefi of the board and of N.R.A. in any proper matter to the end of 
perfecting and strengthening any such organization, and to assist to 
make available to the Administration of N.RA. the services of any 
such organization. 

12. General statement of policy and purpose 

There is no force here except conscience and opinion. This is aa 
appeal to those good instincts of our people which have never been 
besought in vain. But it is not a ballyhoo campaign. The plan is 
new ; the agreement is not simple and a thorough public program of 
explanation is needed and will be carried out After four years of 
hopeless and seemingly helpless suffering and inaction, it would be 
unforgivable not to open to the country the chance it now has under 
this law to unite once more to overcome an emergency and, it may be, 
to defeat depression. 



9759 



-65- 

This is a test of patriotism. It is the time to demonstrate the 
faith of our fathers and our belief in ourselves. We are a people 
disciplined by democracy to a self-control — sufficient to unite our pur- 
chasing power — our labor power— our management power to carry 
out this great national covenant with vigor, with determination but 
with the calm composure and fair play whi(£ should always mark 
the American way. 

Hdgh a Johnson, 

Admmistrator. 
Approved by : 
National Indastrial Recovery Board. 
Daniel C. Ropeb, 

Chairman, 



9759 



-67 

A?P31lDIX 3 

■ EXCEZPTS 72DU A PvEPOP.T OU '3UZEAU OP ■ ' . ' .. -' 
PUBLIC PELATlurs , .. , 

Charles S. Horner, 1 9 3 3 •• 

)'Great efforts were directed to the seciiring of definite coopera- 
tion in addressing national organizations. Before the President's Re- 
em-oloyinent Agreement v'as ajinounced, nearly all of the national orgari.i- 
zations, such as Rotarj'- Clubs, Ki\7anis, Lion, Chambers of Commerce,, con- 
ventions, Somen's Clubs, Praternal Societies, in short, all similar groups 
of national scope ^,'ere contacted, and, through the represente.tive leaders 
of these, arrangements r/ere made for active participation on the part of 
their various ixaits and members." 

"Our hope 'jps to provide a temioorar^/ state organization and, working 
throTJgh this, to secure county end. city organizations. This plan was 
adhered to in part and a large share of communities were organized by 
this method. The announcement of the President's plan created need for 
much more rapid action. Therefore, you sent a telegram to a leading civic 
organization in each city of America having pu population of 10,000 and over. 
This telegram aslred for an immediate citv-wide organization, to include 
representative leaders of all civic, business, professional, labor, culture 
and other groups. In round n-umbers, there are a thousand of such cities, 
and more than 800 responded fa.vorablj'- at once. In cities having a popu- 
lation of less than 10,000, a letter was sent over your signatiire asking 
for the same sort of actiont A much smaller percentage of the sE-ftller 
cities responded at once due, no doubt, to the lack of understanding of the 
program. However, amongst all classes of cities, la.rge a.nd small, orgaini- 
zations were effected in about 3,000 b^^ this procedure. To hast-en the 
organization in other cities, different plans were used. 

"T7e had secured State Chairmen in about half of the states when 
Bulletin #3 was published, providing for State 3ecover>,'- Boards. It app- 
ears to me that there might be confusion and duplication in the work of 
the State Puecover;','- Boarc's aaid our State Chairmen. Therefore, v;e discon- 
tinued the practice of appointing State Chairmen, althou^gh those who had 
been appointed rendered solendid service and, in many cases, were largely 
resiDonsible for the thorough community organizations secured. Next, we 
enlisted the postmasters in unorganized communities auid, following that, 
the mayors v/ere aopealed to. 

"On September 26 we had recorded in this office an orgajiiza-tion in 
6220 towns and cities. 

"According to plans of organization, to each local committee was given 
the responsibility to maJce a success of the drive in its community. The 
committees were asked to cprry on an educational and publicity program 
and to enlist workers for the pui-pose of calling, personally, on consumers 
and employers. Tlie^r were asked to proceed in an orderlj- way, to exert no 
coercion, but ra.ther to persuade with friendly arg\iments. Tlie camptlgn 
was 'tjonducted without any bitterness at all, with practically no distur- 
bance, and the effectiveness of this plan is easily proven b;,^ the fact 
that the signed agreements came back to the postoffices just about as ra.pid- 
ly as organizations were perfected and gotten under way. 

9759 



"A radio section was set -up, '^E'ovty-th.Tee national nook-ups and one 
international hook-up veve provided. The tv7o national chains, Col-um'bia 
Bro£.dcasting System and the National Broadcasting Companj?-, cooperated 
constantly. The;'- donated facilities Fhich, at cojnmercial rates, would 
amount to over $200,003. In many instances thejr paid v/ire charges to the 
American Telephone and Telegraph Company in order to pick up speeches. 
62 sponsors that made nation-wide programs gave all or pat of their time 
to .the stor;'- of the Blue Eagle Drive. In many of instances, the president 
of the siDonsoring company gave out massages personally. The national 
hoo:c-up of August 27, featuring General Johnson and inducting nationally 
known radio stars picked up from H61l3'-wood, llev; York, Toledo and ''Washing- 
ton Somraanded, in the opinion of man;'- ratio officials, the largest visit- 
ing audience of the ;'-ear. 500 local broadcasting stations made dail;' 
anno-uncements. 

Charles F. Homer in reporting to the Administrator on the work of 
the Bureau of Public Relations during the time he directed the work, 
dwelt on the active partici-oation secured from national organizations, 
such as Rotary CTabs, Kiwanis, Lion's,' Chambers of Commerce, conventions, 
women's cluos, and fraternal societies. 

7hen the President's Reemplo~/ment Ar'-;reement was announced, temporary 
state organizations, and r'jider them, country and city organizations to 
include cities having a population of 10,000 and over, had been organized. 
On September 25, 1933, this organization includ.ed 5200 towns and cities. 
The .committees in these communities '.'ere as :ed to carry on educational 
and publicity programs and to enlist volunteer workers for the -purpose of 
calling personall"^ on consumers and on employers. Undoubtedl;'-, the v.'ork 
of these organizations accelerated sigiiatures to the President's Re-employ- 
ment Agreement, as well as the vast numbers of cons-amers' pledge cards 
signed by the public throu.ghout the count r^^. 



9759 



-69- 

^yPSHDIX c 

NATIONAL RECOVERY ADMINISTRATION 



BuUetin No. 4 



WHAT THE BLUE EAGLE MEANS TO YOU AND 
HOW YOU CAN GET IT 

The President's reemployment program ia advancing to complete 

success. No such sweeping demonstration of the unity of a whole 

people against a national danger has ever been made. In this vast 

surge of patriotism it is necessary to keep our common purpose 

always clear. When 125,000,000 people attempt to act as one man, 

there are sure to be some misunderstandings. It is time to restate 

as clearly as possible the aim of the whole endeavor and the duty 

of each individual. That is the purpose of this message— to state 

officially, briefly, and clearly the simple rules for common guidance. 

This plan depends wholly on united action. That unity is almost 

complete. In the next few days let us close up every gap in the 

ranks and nail the flag of the Blue Eagle on the door of every man 

who works another man. 

Hugh S. Johnson. 



9759 



•70- 



HOW TO EARN THE BLUE EAGLE 

1. Sign the President's Reemployment Agreement (P.R.A.). 

2. Shorten Hours of factory workers to 35 hours per week and 
of all other employees to 40 hours per week. (See pars. 2, 8, and 4, 
P.RA.) 

3. Raise Wages. (See pars. 5, 6, and 7, P.R.A.) 

4. Don't Employ ChUd Labor. (See par. 1, P.R.A.) 

5. Cooperate with the President. To do this : 

(a) Live Up to the Agreement. (See par. 8, P.R.A.) 
(6) Don't profiteer. (See par. 9, P.R.A.) 

(c) Deal Only with Others "Under the Blue Eagle." 

(See pars. 10 and 12, P.R.A.) 

(d) Get a Code in by September 1. (See pars. 11 and 13, 
P.RA.) 

HOW TO GET THE BLUE EAGLE 

1. Sign the President's Reemployment Agreement. 

2. Mail the Signed Agreement to your district office of the 
Department of Commerce. 

3. Put the Agreement into Effect (as outlined above in " How 
to Earn the Blue Eagle"). 

4. Sign a Certificate of Compliance. This is a slip distributed 
with the agreement. It says: 

" I/We certify that we have adjxisted the hours of 
labor and the wages of our employees to accord with 
the Presidenfs Reemployw^nt Agreement, which we 
have signed.'''' 

5. Deliver the Certificate of Compliance to Your Post OflSce. 
The postmaster will give you your Blue Eagle. 

HOW TO EARN AND GET THE BLUE EAGLE IN EXCEPTIONAL CASES 

1. Where a Code Has Been Submitted. (See par. 13, President's Reemploy- 
ment Agreement.) — If your whole trade or industry is unable to live up to tlie 
President's Agreement, you should get together at once, with other employers in 
your trade or industry and, in a group, submit a code of fair competition to 
NRA in Washington. 

Since it takes some time after a Code has been submitted for it to be finally 
approved, your group may petition NRA to substitute the wages and hours 
provisions of your code for the wages and hours provisions of the President's 
Reemployment Agreement 



9759 



■< 



-71- 

If NRA finds that the code provisions are within the spirit of the Presl- 
flent's Beemployment Agreement, it will consenil; to snch substitutions. If NRA 
does consent there will be an official notlcfj in all the papera You may 
then put the substituted provisions into effect. In place of the indicated para- 
graphs of the President's Reemployment AgrtJement In this case you should 
add to your Certificate of Compliance the foUowing clause : " To the extent of 
NBA consent as announced, we have complied with the President's Agreement 
by complying with the substituted provisions of the code submitted by the 
Trade/Industry." 

If the substitution Is consented to after you have already put the President's 
Reemployment Agreement into full effect, and after you have already gotten 
yoUi- Blue Eagle, you may still put the substituted provisions Into effect wittaoat 
signing another certificate of compliance. 

2. Where a Code Has Been Approved. — If a code of fair competition for 
your trade or Industry has already been finally approved by the President, you 
need not sign the President's Reemployment Agreement in order to get the 
Blue Eafe'l& The same is true if you are tnibject to a code which has been put 
into effecv temporarily by agreement between the President und representatives 
of your tr.ade or industry ; but In either of these cases, you must sign a certifi- 
cate of cotapliance, adding to It the foUovping statement : " We have compiled 
with the opi^rative provisions of the Code for the Trade/Industry." 

3. Cases of Individual Hardship. (Par. 14, President's Reemployment Agree- 
ment.) 

If there are some peculiar reasons why a particular provision of the Presi- 
dent's Agreement will cause you, Individually, a great and unavoidable hart^ 
ship, you may Still get the Blue Eagle by taking the following steps : 

(o) Sign the agreement and mail it to your District Office of the Department 
of Commerce. 

(6) Prepare a petition to NRA setting out the reasons why you cannot 
comply with certain provisions, and requesting that an exception be made in 
your case. 

(o) 11a ve this petition approved by your trade association. If there Is no 
Trade Association for your business have your petition approved by your local 
Chamber of Commerce or other representative organization designated by 
NRA. 

(d) If the Trade Association or other organization approves your petition, 
send it to NRA In Washington with this approval. 

(e) Comply with all the provisions of the agreement except the one you are 
petitioning to have excepted. 

(f) Sign the certificate of compliance, adding to it the following clause: 
"Except for those. Interim provisions regarding wages and hours which have 

been approved by the Trade Association." Deliver this certificate of 

compliance to your post office. You will receive a Blue Eagle, but before 
displaying it, you must put a white bar across its breast with the word 
"provisional" on it If your petition is finally approved by NRA you may 
take the bar down. If your petition is not approved by NRA you must comply 
with the agreement in fulL 

The faci, that NRA has consented to the substitution of the wages and houni 
provisions of the code submitted by your trade or industry, for the wages and 
hours provisions of the President's Agreement (as outlined in paragraph 1, 
above), does not deprive you of your remedy under this paragraph. 

If you feel that even with the substituted provisions the President's Agreement 
will cause you, individually, a great and unavoidable hardship, yon should follow 



9759 



-72- 

fhe steps outlined In this paragraph. When yon sign the Oertlflcate of Compli- 
ance after adding the clause quoted in paragraph 1, yoa should add the clanae 
quoted in paragraph 3 (f). 

4. Union Contracts. — If you have a contract with a labor organization calling 
for longer hours than the President's agreement allows, and this contract was 
made in good faith by coUectlye bargaining and cannot be changed by you 
alone, try to get the labor organization to agree to a reduction to the maximum 
hours allowed by the President's agreement. If the labor organization will not 
agree, you may apply to NRA for permission to work your employees as many 
hours a week as the contract calls for. Send to NRA a request for this 
permission, with a certified copy of the labor contract, and any statement of 
the fact you desire. 

This application will be handled by NRA in the same manner as an appli- 
cation for relief in cases of Individual hardship, filed under paragraph 14 
P.R.A., but it will not be necessary to obtain the approval of a trade association 
or other organization. If NRA approved your application or Is able to bring 
about any modification of the contract, you will then be granted permission to 
work employees in accordance with the contract as originally written or modi- 
fied, and can then sign the Certificate of Compliance adding to it the following : 
" Except as required to comply with the terms of the agreement in effect be- 
tween the undersigned and the (name of labor organization)." 



•73- 



OFFICIAL EXPLANATION OF THE PRESIDENT'S 
REEMPLOYMENT AGREEMENT 

(Sometimes miscalled "The Blanket Code") 

This Agreement binds you to put its terms into effect from the 
time you sign the Certificate of Compliance until December 31, 1933 } 
but when the President has approved a Code for your trade or 
industry, that Code takes the place of this Agreement. 

YOU AGREE: 

Child Labor 

1. After August 31, 1933, not to employ any person under 16 
years of age, except that persons between 14 and 16 may be em- 
ployed (but not in manufacturing or mechanical industries) for 
not to exceed 3 hours per day and those hours between 7 a.m. 
and 7 p.m. in such work as will not interfere with hours of day 
school 

This means that after August 31, 1933, you agree not to employ 
any children under 14 years old in any kind of business. You may 
employ children between 14 and 16 years old, but only for 3 hours a 
day and those hours must be between 7 in the morning and 7 at night, 
and arranged so as not to interfere with school. You agree not to 
employ any children under 16 years old in a manufacturing or 
mechanical industry at any time. 

Maximum Hours 

2. Not to worit any accounting, clerical, banking, office, service, 
or sales employees (except outside salesmen) in any store, office, 
department, establishment, or public utility, or on any automotive 
or horse-drawn passenger, express, delivery, or freight service, 
or in any other place or manner, for more than 40 hours in any one 
week and not to reduce the hours of any store or service operation 
to below 52 hours in any one week, unless such hours were less 
than 52 hours per week before July 1, 1933, and in the latter 
case not to reduce such hours at all. 

This means that you agree not to work any of the kinds of employ- 
ees listed in this paragraph (except outside salesmen) for more than 
40 hours a week. This paragraph covers aU employees except factory 
workers, mechanical workers and artisans. However, no limit on 



9759 



-74- 

hours and no minimum wage applies to purely agricultural labor, 
domestic servants, or persons working for you solely on a commission 
basis ; but if you have persons working for you who are guaranteed 
a base pay in addition to their commission, then their base pay plus 
commissions must equal the minimum wage. 

This Agreement sets no maximum on the number of hours you may 
keep your business open. You agree not to keep your wholesale, 
retail, or service establishment open less than 52 hours a week unless 
it was open less than 52 hours a week before July 1, 1933. Even 
then you agree to keep it open as long as you used to keep it open 
before July 1. Of course, if you have always kept your store open 
shorter hours in the summer months you can continue to do so this 
summer, but you should pa}' your employees the same amount each 
woek that they will get when you keep your store open full time. 

The stores with more than two employees which remain open the 
loiigesl are contributing the most to carrying out the purpose of the 
Agreement. The stores with two or less employees which can be open 
only the minimum number of hours required are doing the most to 
fulfill their part. 

3. Not to employ any factory or mechanical worker or artisan 
more than a maximum week of 35 hours until December 31, 1933, 
but with the right to work a maximum week of 40 hours for any 
6 weeks within this period; and not to employ any worker more 
than 8 hours in any one day. 

This means that if you are employing factory or mechanical 
workers or artisans, you agree not to work them more than 85 hours 
a week and not more than 8 hours in any one day. 

Whpn you have more than the usual amount of work to do and 
can't (-^et additional workers, you may employ this class of employees 
up to 40 hours a week in any 6 weeks, but even in this case you mast 
not work thorn more than 8 hours a day. 

I. The maximum hours fixed in the foregoing paragraphs 2 and 
8 shall not apply to employees in establishments employing not 
more than two persons in towns of less than 2,500 population 
which towns are not part of a larger trade area ; nor to registered 
pharmacists or other professional persons employed in their pro- 
fession; nor to employees in a managerial or executive capacity, 
who now receive more than $35 per week; nor to employees on 
emergency maintenance and repair work; nor to very special cases 
where restrictions of hours of highly skilled workers on continu- 
ous processes would unavoidably reduce production but, in any 
such special case, at least time and one-third shall be paid for 
hours worked in excess of the maximum. Population for the pur- 
poses of this Agreement shall be determined by reference to the 
1930 Federal census. 



-75- 

This means that there are certain employeea whom you may work 
longer .hours than are allowed by paragraphs 2 and 3, P.RA. 

If your business is in a small town (population less than 2,500 by 
the 1930 census) and you do not employ more than two persons, the 
limit on hours does not apply to these employees. If your town is 
really a part of a larger business community, the limit on hours does 
apply to these employees. 

The limit on hours does not apply to your employees who are 
wholly or primarily managers or executives, as long as they receive 
$35 a week. Professional persons, like doctors, lawyers, registered 
pharmacists and nurses, may be employed without any limit on hours. 

Where employees are doing emergency jobs of maintenance or 
repair work, they may be kept on the job for longer hours, but you 
agree to pay them at least time and one third for hours worked over 
the limits set in paragraphs 2 and 3, P.R.A. 

There are a few very special cases where highly skilled workers 
must be allowed to work more than the limit of hours in order to 
keep up output on continuous process, but, here again, you agree 
to pay them at least time and one third for the hours they work 
over the hmits set in paragraphs 2 and 3, P.R.A. 

Minimam Wages 

5. Not to pay any of the classes of employees mentioned in 
paragraph 2 less than $15 per week in any city of over 500,000 
population, or in the immediate trade area of such city; nor less 
than $14.50 per week in any city of between 250,000 and 500,000 
population, or in the immediate trade area of such city; nor less 
than $14 per week in any city of between 2,500 and 250,000 popu- 
lation, or in the immediate trade area of such city and in towns of 
less than 2,500 population to increase all wages by not less than 
20 percent, provided that this shall not require wages in excess .of 
$12 per week. 

This sets out the schedule of minimum wages which you agree to 
pay all employees, except factory or mechanical workers or artisans. 
The wages are set out in terms of doUars per week, but if your 
employees are paid by the hour, you may use the following schedule : 

Place of bniinen 
(Population by 1930 Censna) Hlnimam wa^ - 

In cities of 500,000 or over 87 Vi cents per hour 

In cities of between 250,000 and 500,000 86 '4 cents per hoar 

In cities of between 2,500 and 250,000 85 cents per hour 

If your business is in a town of less than 2,500 population, you 
agree to raise all wages at least 20 percent. If raising all wages 
20 percent causes you to pay over $12 per week, then you need only 
pay the $12 per week. 



3759 



-76- 

If there is any doubt in your mind as to whether your business 
is in the " immediate trade area " of a city, you should ask your 
local chamber of commerce or other similar organization for a 
decision on the matter. The general rule is that the " immediate 
trade area " is the area in which there is direct retail competition. 

6. Not to pay any employee of the classes mentioned in para- 
graph 3 less than 40 cents per hour unless the hourly rate for the 
same class of work on July 15, 1929, was less than 40 cents per 
hour, in which latter case not to pay less than the hourly rate on 
July 15, 1929, and in no event less than 30 cents per hour. It is 
agreed that this paragraph establishes a guaranteed minimum 
rate of pay regardless of whether the employee is compensated on 
the basis of a time rate or on a piece-work performance. 

This fixes the minimum wage which you agree to pay factory and 
mechanical workers and artisans. The following schedule may help 
you to find out the proper rate : 



If the rate for the same kind of work In 
the same community on July 15, 1929, 



The minimnm rate which you a^TM 
to pay is — 



More than 49 cents an hour 40 cents an hour 

30 cents to 40 cents an hour The July 15, 1929, hourly rate 

Less than 30 cents an hour 30 cents an hour 

Instead of paying by the hour, you may pay by the week at a rate 
which gives the same weekly earnings for a week of 35 hours. For 
example, instead of 40 cents an hour, you may pay $14 per week. 

If you had a contract on or before August 1, 1933, with a learner 
or apprentice, you do not have to pay him the minimum wage, but 
no one should be classed as a learner or an apprentice who has ever 
been employed as a regular worker in your industry. 

7. Not to reduce the compensation for employment now in ex- 
cess of the minimum wages hereby agreed to (notwithstanding 
that the hours worked in such employment may be hereby re- 
duced) and to increase the pay for such employment by an equi- 
table readjustment of all pay schedides. 

Two official interpretations — no. 1 and no. 20 — have been issued, 
explaining this paragraph. You can get copies of these at your local 
chamber of coromerce or from the nearest NRA representative. 

Antisubterfuge 

8. Not to use any subterfuge to frustrate the spirit and intent 
of this Agreement which is, among other things, to increase em- 
ployment by a universal covenant, to remove obstructions to com- 
merce, and to shorten hours and to raise wages for the shorter 
week to a living basis. 



«77- 

This is the heart of the whole Agreement. The President's Plan 
is to cure this depression by increasing purchasing power. You can 
help him put this plan over by voluntarily signing this Agreement 
to shorten hours and raise wages. There is no FORCE to compel 
you to sign this Agreement. It is not LAW. It is a personal 
Agreement between you and the President. The President expects 
you to do everything in your power to carry out the spirit of the 
Agreement after you sign it. This means wholehearted cooperation 
by really EARNING the Blue Eagle — not by just getting it and 
then not doing your part. 

It would be a " subterfuge to frustrate the spirit and intent of this 
Agreement" to sign it and then put all of your employees on a 
straight commission basis — or any other trick to avoid doing what 
you promise to do. 

Antiprofiteering 

9. Not to increase the price of any merchandise sold after the 
date hereof over the price on July 1, 1933, by more than is made 
necessary by actual increases in production, replacement, or in- 
voice costs of merchandise, or by taxes or other costs resulting 
from action taken pursuant to the Agricultural Adjustment Act, 
since July 1, 1933, and, in setting such price increases, to give full 
weight to probable increases in sales volume and to refrain from 
taking profiteering advantage of the consuming public. 

The object of this paragraph is to prevent profiteering or specu- 
lation, so that prices will not rise faster than purchasing power, 
and destroy the President's Plan. The danger to be avoided was 
pointed out by the President on June 16, 1933, in the statement 
which he made on signing the Recovery Act. He said, then : 

"If we now inflate prices as fast and as far as w^e increase 
wages, the whole project will be set at naught. We cannot hope 
for the full effect of this plan unless, in these first critical months, 
and, even at the expense of full initial profits, we defer price 
increases as long as possible. If we can thus start a strong, 
sound upward spiral of business activity our industries will have 
little doubt of black-ink operations in the last quarter of this year. 
The pent-up demand of this people is very great, and if we can 
release it on so broad a front, we need not fear a lagging recovery. 
There is greater danger of too much feverish speed." 

If you were selling your merchandise on July 1, 1933, below cost, 
you may take your cost price on that date as the basis for determin- 
ing the allowable increase under this paragraph. 



0759 



-78- 
CotfperatloB 

10. To support and patronize establishments which also have 
signed this agreement and are listed as members of NRA 
(National Recovery Administration). 

The success of the President's Keemployment Agreement program 
depend? upon public support going to those who raise wages and 
hours in accordance with this agreement, in order to repay 
for the extra expense which they have incurred in doing their 
part 

Codes 

11. To cooperate to the fullest extent in having a code of fair 
competition submitted by his industry at the earhest possible date, 
and in any event before September 1, 1933. 

This agreement is a temporary measure to tide over the time from 
now until all employers and employees can cooperate under codes of 
fair competition under the National Industrial Recovery Act. You 
agree, in this paragraph, to do all you can to have a code submitted 
for your trade or industry before September 1, 1933. 

Appropriate Adjustments 

12. Where, before June 16, 1933, the undersigned had contracted 
to purchase goods at a fixed price for delivery during the period 
of this agreement, the undersigned will make an appropriate 
adjustment of said fixed price to meet any increase in cost caused 
by the seller having signed this President's reemployment agree- 
m«it or having become bound by any code of fair competition 
approved by the President. 

This agreement will, usually, increase the costs of those who sign 
it. The purpose of this paragraph is to pass any such increased costs 
along from one signer to another, and so on to the consimier. 

If yen have a contract made before June 16, 1933, to buy goods at a fixed 
price, you agree to make an arrangement with your seller so that you pay him 
for the extra cost to him caused by his having signed this agreement, or having 
come under a code approved by the President 

In some cases the final buyer Is the Government, which, under existing law, 
Is generally not allowed to pay more than the contract price. The President 
has announced that he will recommend to Congress that appropriations be made 
to allow the Government to play Its part by paying Government contractors 
who have signed the agreement for their increased costs. The President has 
also appealed to the States and cities to take action permitting them to do 
likewise. 

You should have no fear that, because your buyer has not signed, you will 
be left with the increased cost on you alone. The President expects evenr 
employer to sign this agreement 



9759 



-79- 



Substitutions 



13. Th?s) agreement shall cease upon approval by the President 
of a code to which the undersigned is subject; or, if the NRA 
so elects, upon submission of a cede to which the undersigned is 
iubject and substitution of any of its provisions for any of the 
terms of this agreement. 

As pointed out in the explanation of paragraph (11) P.R.A. above, 
tJio Presiclc^nt plans to have all business govern itself under codes, 
and thcreforG codes should bo promptly submitted. If NRA finds 
that the wages and hours provisions of a code whicli has been sub- 
mitted are within the spii-it of this agreement, NRA will authorize 
your industry to operate under those provisions rather than under 
the wages and hours provisions of this agreement. 

Exceptions 

14. It is agreed that any person who wishes to do his part In 
the President's reemployment drive by signing this agreement, but 
who asserts that some particular provision hereof, because of 
pecuiiar circumstances, will create great and unavoidable hardship, 
may obtain the benefits hereof by signing this agreement and 
putting it into effect and then, in a petition approved by a trade 
association of his industry or other representative organization 
def.-,;r:;aled by NKA, u:ay apply for a stay of such provision 
peiKlin.',' a summary investigation by NRA if he agrees in such 
appHciftion to abide by the decision of such investigation. This 
agreenunt is entered into pursuant to section 4 (a) of the National 
Industrial Recovery Act and subject to all terms and conditions 
required by sections 7 (a) and 10 (b) of that act. 

If yon really want to do your part in the President's reemployment 
program, sign this agreement. If some particular part of this agree- 
ment causes you, as an individual evipJoyer^ great and unavoidable 
hardship, you may obtain relief by taking the steps outlined imder 
the heading Cases of Individual Hardship. 



•80- 



INTERPRETATIONS OF THE PRESroENTS REEMPLOY- 
MENT AGREEMENT 

INTERPRETATION NO. 1 

Concerning Pajeaghaph 7 
(See also Interpretation No. 20) 

Paragraph 7 means, first, that compensation of employees above 
the minimum wage group (whether now fixed by the hour, day, week, 
or otherwise) shall not be reduced, either to compensate the employer 
for increases that he may be required to make in the minimum wage 
group in order to comply with the agreement, or to turn this reem- 
ployment agreement into a mere share-the-work movement without 
a resulting increase of total purchasing power. This first provision 
of paragraph 7 is a general statement of what shall not be done. 

The rest of paragraph 7 is a particular statement of what shall be 
done, which is that rates of pay for employees above the minimum 
wage group shall be increased by "equitable readjustments." No 
hard and fast rule can be laid down for such readjustments, because 
the variations in rates of pay and hours of work would make the 
application of any formula unjust in thousands of cases. We present, 
however, the following examples of the need for and methods of such 
readjustments : 

Example 1. Employees now working 40 hours per week in fac- 
tories. When hours are reduced to 35, the present rate per hour if 
increased one seventh would provide the same compensation for a 
normal week's work as before. 

Example S. Employees now working 60 hours per week in fac- 
tories. AVhen hours are reduced to 35, a rate per hour if increased 
one seventh might be insufficient to provide proper compensation. 
But, to increase the rate by five sevenths, in order to provide the 
same compensation for 35 hours as pr-viously earned in 60, might 
impose an inequitable burden on the employer. The 60-hour week 
might have been in effect because of a rush of business, although a 
40-hour week might have been normal practice at the same hourly 
wage. Seasonal or temporary increases in hours now in effect, or 
recent increases in wages, are proper factors to be taken into con- 
sideration in making equitable readjustments. 

The policy governing the readjustment of wages of all employees 
in what may be termed the higher wage groups requires, not a fixed 
rule, but " equitable readjustment " in view of long standing dif- 



13759 



-91- 

ferentials in pay schedules, with due regard for the fact that pay 
rolls are being heavily increased and that employees will receive 
benefits from shorter hours, from the reemployment of other work- 
ers, and from stabilized employment which may increase their yearly 
earnings. 

The foregoing examples indicate the necessity of dealing with this 
problem of " equitable readjustment " of the higher rates of pay on 
the basis of consideration of the varying circumstances and condi- 
tions of the thousands of enterprises and employments involved. 
Any attempt to define a national standard would be productive of 
widespread injustice. The National Recovery Administration will, 
through local agencies, observe carefully the manner in which em- 
ployers comply with their agreement to make "equitable readjust!- 
ments ", and will take from time to time and announce from Wash- 
ington such action as may be necessary to correct clear cases of 
unfairness and to aid conscientious employers in carrying out in good 
faith the terms of the agreement. 

When an employer signs an agreement and certifies his compliance 
and also joins in the submission of a Code of Fair Competition before 
September 1, 1933, his determination of what are " equitable read- 
justments " should be accepted at least prior to September 1, as a 
prima facie compliance with his agreement, pending action by NRA 
upon the code submitted, or any other action by NRA taken to 
insure proper interpretations or applications of agreements. This 
will afford NRA an opportunity to survey the general results of the 
reemployment program and to iron out difficulties and misunder- 
standings over agreements that are of a substantial character. 

INTERPRETATION NO. 2 

Concerning Paragraph 14 

A person who believes that some particular provision in the 
Agreement, because of peculiar circumstances, will create great and 
unavoidable hardship should prepare a petition to NRA asking for 
a stay of this provision as to him. He should then submit this peti- 
tion to the trade association of his industry or, if there is none, to 
the local chamber of commerce or similar representative organization 
designated by NRA for its approval. The written approval of the 
trade association or such other organization will be accepted by 
NRA as the basis for a temporary stay, without further investigation, 
pending decision by NRA. The petition must contain a promise to 
abide by NRA's decision, so that if NRA decides against the peti- 
tioner he must give effect to the provision which was stayed from 
the date of the decision of NRA. 



97-59 



-82- 

The petition and approval of the trade association or other organi- 
zation, as prescribed above, should be forwarded to NRA in Wash- 
ington; and the employer's signed copy of the President's Re- 
employment Agreement should be sent to the District Office of the 
Department of Commerce. After complying with these require- 
ments the employer will be entitled to receive and display the Blue 
Eagle by delivering his certificate of compliance to his Post Office. 

Paragraph 14 is not intended to provide for group exceptions, but 
only to meet cases of individual hardship. 

INTERPRETATION NO. 8 

Concerning Date of Compliancb 

It is expected that all employers desiring to cooperate with the 
President's recovery program will sign the Agreements promptly and 
mail them in. It is recognized, however, that it will be physically 
impossible in many instances to adjust employment conditions and to 
hire the necessary additional personnel in order to comply with the 
Agreement on August 1. For that reason, provision has been made 
for issuing the Blue Eagle only upon the filing of a certificate of 
compliance. It should be possible in most cases to make the necessary 
adjustments and file a certificate of compliance within the first week 
of August, and such action, taken as promptly as possible, will be 
regarded as carrying out the Agreement in good faith. 

INTERPRETATION NO. 4 

Concerning Paragraph 18 

All employers are expected to sign the Agreement, whether codes 
have been submitted to NRA or not (unless such codes have already 
been approved) ; but after the President has approved a code, or 
after NRA has approved of the substitution of the provisions of a 
code for Agreements in the trade or industry covered, conformity 
with the code provisions by an employer will be regarded as 
compliance with his individual Agreement. 

INTERPRETATION NO. 5 

Concerning Paragraph 9 

Where the July 1, 1933, price was a distress price, the employer 
signing the agreement may take his cost price on that date as the 
base for such increase in selling price as is permitted by paragraph 9. 



9759 



-83- 

INTERPRETATION NO. 6 

Concerning Employments Covered bt-the Agreement 

The foUowing groups of employment are not intended to be covered 
by the President's Reemployment Agreement: 

1. Professional occupations. 

2. Employees of Federal, State, and local governments and other 
public institutions and agencies. 

3. Agricultural labor. 

4. Domestic servants. 

5. Persons buying goods and selling them independently or persons 
selling solely on commission, provided, however, that persons regu- 
larly employed to sell on commission, with a base salary or guaran- 
teed compensation, come within the requirements of the agreement. 

INTERPRETATION NO. 7 

Concerning Paragraph 4 

time and a third for hours worked in excess of the maximttm bt 
employees on emergency maintenance and repair work 

Hours worked in excess of the maximum by employees on emer- 
gency maintenance or repair work shall be paid at the rate of time 
and one third. 

INTERPRETATION NO. 8 

Concerning Paragraph 2 

SEASONAL reduction OF HOURS OF OPERATION 

The hours of any store or service operation may be reduced below 
the minimum specified in paragraph 2 if the reduction is in accord- 
ance with a practice of seasonal reduction of hours and does not 
result in reduction of the weekly pay of employees. 

INTERPRETATION NO. 9 

Concerning the Minimum Wage for Apphentices 

The minimum wage provisions of the Agreement do not apply to 
apprentices if under contract with the employer on August 1, 1933, 
but no one shall be considered an apprentice within the meaning of 
this interpretation who has previously completed an apprenticeship 
in the industry. 



-S4- 

INTERPRETATION NO. 10 

Concerning the IVIinimum Wage for Part-Time Workers 

The minimum wage for a part-time worker in an employment 
described in paragraph 2 of the Agreement is a wage such that if the 
employee worked at that wage for a full week of 40 hours he would 
receive the mmimum weekly wage prescribed for him by the Agree- 
ment. The minimum wage for a part-time worker in an employment 
described in paragraph 3 of the Agreement is the minimum wage per 
hour prescribed by paragraph 6 of the Agreement. 

INTERPRETATION NO. 11 

Concerning Maximum Hours of Store Operation 

The Agreement imposes no limitation on the maximum hours of 
operation of a store or service. 

INTERPRETATION NO. 12 

Concerning Employments Included lnt Paragraph 2 
The following are among the employments included in para- 
graph 2 : 

Barbers Janitors 

Beauty parlor oi)erators Watchmen 

Dish washers Porters 

Drivers Restaurant workers 

Delivery men Filling station operators 

Elevator operators 

INTERPRETATION NO. IS 
Concerning Paragraph 6 

" Immediate trade area " is the area in which there is direct retail 
competition. In case of question, the decision shall be made by the 
local chamber of commerce or similar organization subject to review 
by the State Recovery Board. 

INTERPRETATION NO. 14 

Concerning Owners of Stores Without Employees 

Owners operating their own establishments without any employees 
may obtain the insignia of NEA by signing the Agreement and a 
Certificate of Compliance. 



•3753 



-85- 

INTERPRETATION NO. 15 
Concerning Paragraph 4 
The maximum hours fixed in paragraphs 2 and 8 of the Agree- 
ment do not apply to an employee receiving more than $35 per week 
and who is acting primarily, although not wholly, in a managerial 
or executive capacity. 

INTERPRETATION NO. 16 

Concerning Nonprofit Organizations 
Nonprofit organizations are considered as employers for the pur- 
poses of the Agreement. 

INTERPRETATION NO. 17 

Concerning Signing of Agreements 

An employer engaged in several different businesses or employing 
labor of several different classes should sign but one Agreement. 

INTERPRETATION NO. 18 

(See also No. 12) 
Concerning Emplotments Included in Paragraph 2 

The following are among the employments included in paragraph 
2: Maintenance forces (including charwomen, window cleaners, etc.)» 

INTERPRETATION NO. 19 

Concerning Professionai, Persons 

The following are included among professional persons within the 
meaning of paragraph 4 : 

Newspaper reporters, editorial writers, rewrite men and other 

members of editorial staffs. 
Internes, nurses, hospital technicians, research technicians. 

INTERPRETATION NO. 20 (CONCERNING PARAGRAPH 7) 

Supplementing Interpretation No. 1 

Paragraph 7 prevents the reduction of compensation in excess of 
the minimum, whether it is paid by the hour, day, week, or month. 

Therefore, an fmployee previously paid by the day, week, or month 
will receive as much for the shorter day, week, or month. 

An employee previously paid by the hour will receive as much per 
hour, but as shortening his hours will reduce his actual earnings per 
day or week his compensation per hour is to be increased by an 
equitable readjustment 



9759 



-86- 

There is no fixed rule which can be applied to determine what is 
an equitable readjustment. In general, it will be equitable to figure 
what the employee would have earned at his previous rate per hour 
in a normal week in the industry, and then to increase the hourly 
rate so as to give him substantially the same compensation as he 
would have gotten for that normal week. But consideration must 
be given to other factors, including: Is the existing rate high or 
low compared with the average rate paid in the industry? WiU 
the resulting adjustment result in an unfair competitive advantage 
to other employers or other trades or industries? Will a long- 
standing wage differential be lost if there is no increase in the 
existing rate? 

UNION CONTRACTS 

Where an employer is bound by the terms of a contract with a 
labor organization entered into as the result of bona fide collective 
bargaining and he is unable to effect a change in such contract by 
agreement in order to comply with the terms of the President's Re- 
emplojrment Agreement, he may certify his compliance with the 
President's Agreement with the following exception: "Except as 
required to comply with the terms of agreement in effect between 
the undersigned and " 

(name of labor organization) 

It should be understood that his exception can be made only in the 
case of a contract not subject to change at the discretion of the em- 
ployer and then only after a certified copy of the contract has been 
filed with the National Recovery Administration and its approval haa 
been given to the exception stated. 

When application is made for approval of such an exception, the 
application wiU be handled by the National Recovery Administration 
in the same manner as applications for relief in cases of individual 
hardship filed under paragraph 14 of the President's Reemployment 
Agreement, provided, however, that the approval of a trade associa- 
tion or other representative organization will not be required.* 

INTERPRETATION NO. 21 

SUPPLEMENTINQ INTERPRETATION No. 20 

The following paragraph is added at the end .of interpretation 
no. 20 : 

When application is made for approval of such an exception, the 
application will be handled by the National Recovery Administra- 

> Thla paragraph was added by Interpretation no. 21. 



9759 



-87- 

tion in the same manner as applicationa for relief in cases of ii>- 
dividual hardship filed under paragraph 14 of the President's Re- 
employment Agreement : Provided, however. That the approval of a 
trade association or other representative organization will not be 
required. 

With this addition, the last three paragraphs of interpretation na 
20 are as follows : 

Where an employer is bound by the terms of a contract with a 
labor organization entered into as the result of bona fide collective 
bargaining and he is unable to effect a change in such contract by 
agreement in order to comply with the terms of the President's 
Agreement with the following exception : " Except as required to 
comply with the terms of agreement in effect between the under- 
signed and 



(Name of labor orgasliatlon) 

It should be understood that his exception can be made only in the 
case of a contract not subject to change at the discretion of the em- 
ployer and then only after a certified copy of the contract has been 
filed with the National Recovery Administration and its approval 
has been given to the exception stated. 

When application is made for approval of such an exception, the 
application will be handled by the National Recovery Adminis- 
tration in the same manner as applications for relief in cases of 
individual hardship filed under paragraph 14 of the President's Re- 
employment Agreement : Provided, however, That the approval uf a 
trade association or other representative organization will not be 
required. 

GENERAL EXPLANATIONS 
1. NONCOMMERCIAL EMPLOYERS 

There is nothing to prevent an employer of labor outside of trades 
and industries, any professional man or organization or any non- 
profit organization, from signing the President's Reemployment 
Agreement and conforming to its provisions. This does not mean, 
however, that there is any compulsion to do so, other than that 
resulting from a desire to cooperate, when appropriate, with a gen- 
eral program of shorter hours and higher wages. 

To the extent that labor is employed in occupations comparable 
with trades or industries, it is, of course, desirable that similar con- 
ditions prevail. This applies to professional men or organizations, 
hospitals, educational institutions, or any non-profit organization. 



3759 



-ss- 

2. RIGHT OP FARMERS TO THE BLUE EAGLE 

Farmers may obtain the Blue Eagle ff they comply with the 
President's Agreement. Interpretation no. 6, in which it is stated 
that agricultural labor is not intended to be covered by the P.R.A. 
means that it was intended that employers of such labor should not 
be under any compulsion to sign the IPresident's Agreement. Any 
farmer in trade or industry who complies with the terms of the 
President's Agreement as to his agricultural labor will, of course, be 
entitled to the Blue Eagle. 

8. PERSONS LLMITED IN EARNING POWER THROUGH PHYSICAL 
OR MENTAL DEFECTS OR AGE 

Persons who are limited in their earning power through physical 
or mental defects, age, or other infirmities, may be employed on light 
duty below the minimum wage set by the President's Agreement, and 
for longer hours than are therein authorized, if the employer obtains 
from the State labor commission a certificate authorizing the employ- 
ment of such defectives in such manner. 

T. S. Hammond, 

Executive Director, 
Presidenfa Reemployment Program,. 
Approved : 

Hugh S. Johnson, 

A dministrator. 



075.9 



"89- 

CERTIFICATE OF ?~ESIDE:"T' S ?.r-2: 'PLOT; 3-JT .iG'^.ESi ^ivT 

AIQ 

CERTIFICATE OF COi.PLIAl'CS. 



]VERY Ei.TLOr:R: 



1. This agreement is np.vt of a nation-ride plan to rpise vrires, 
create eiirolovment, and thus increase pijrchasin;i; irio^er and restore busi- 
ness. That plan depends rhollv on -united action b" all emplo''-'?rs. For 
this reason I ask 70U, ?3 an eini)loj^er, to do your part by si-^nir-g. 

2. If it turns out that the general agreement bears unfairly on any 
group of employers thej'- can have that straightoned out ''oj presenting 
promptlj^ their proposed Code of Fair Con <etitior. 

FTAi^CLIi: D. ;T003EVELT 

The White House, 
f^ July 37, 1933 

PRESIDENT'S RSEi PLOY. -El'T .iGREEi lil'IT 
(Authorized b"/ section 4(a,) IJationa,! Industr;,^ Recovery Act) 

During the leriod, of the President's emergencv reem-olo^nr.ent drive, 
that is to sa3% from Augiirt 1 to December 31, 1933, or to any earlier de.te 
of approval of a codie of fair competitio.i to vhjcu he is subject, the undier- 
signed hereb- agrees rith the President as follofs: 

(1) After Autjust 31, 1933, not to eraploj'- any person under 16 ye?rs 
of a-e, er-.cept that persons bet-een 14 and 15 may be emplo;^ed (but not in 
manui'acturing or mechanical industries) for not to exceed 3 hours per day 
and those hours betv/een 7 a.m. rnd 7 p.m. in such rorh as \7ill not inter- 
fere with hours of daj'" school 

^ (2) Fot to i.7ork any accounting, clerical, banking, office, service, 
W or sales employees (excexjt outside sales"ien) in an;'- store, office, depart- 
ment, establishment, or -public utility, or on anjr automotive or horse- 
drarrn passenger, express, delivvi?.'-, or freight service, or in any other 
r)lace or manner, for more than 40 hours in an-' 1 week and not to reduce the 
hours of any store or service operation to bclov.' 52 hours in any 1 v^eek, 
unless such hours vere less than 52 hours per week before J'jI-)'- 1, 1933, 
and in the latter case not to reduce t-uch hours a.t all. 

(3) Fot to employ anj^ frctorj^ or mechanical worker or artisan more 
than a marArmjia week of 35 hours tuitil December 31, 1933, but with the right 

to T/ork a maximum week of 40 hours for an^y S weelcs within this period; and not 
to employ any worker more than 8 hours in any 1 day. 

(4) The raajcimum hours fixed in the foregoing paragraphs (2) and (3) 
shall not appl^y to emplo-^ees in estpblis^iments emploj^ing not more than tv.'o 
persons in towns of less than 2,500 popiilrtion which towns are not part of 
a larger trade area; nor to registered phr.rmncists or other professional 
persons emploj'-ed in their profession; nor to employees in a ma.nagerial or 
executive capacity, who now receive more than $35 per week; nor to em.ploj^ees 
on emergency maintenance and repair \Tork; nor to vyr;'- s'oecial crses "here 
9759 ■ . 



-90- 



restrictions of hours of highly skilled vorkers on continuotis processes 
would tmavoidably reduce production Ijut, in any such special cr.se, at 
least time and one third shall he ;oald for hours ^?orked in excess of the 
maximum. Population for the purposes of this agreement shall be determined 
ty reference to the 1330 federal census. 

(5) Hot to -opy any of the classes of emplovees mentioned in para- 
graph (2) less than $15 per week in an:/ city of over 500,000 population, 
or in the immediate trade area of such cit"/; nor less than $14,50 per vreek 
in anv city of oet'een 250,000 and 500,000 poo\ilatidn, or in the immediate 
trade area of such city; nor less than $14 per v/eek in any city of bet'-'een 
2,500 and 250,000 population, or in the immediate trade area of such city; 
and in tov/ns of less than 2,500 population to increase all vages by not 
less tha,n 20 percent, provided that this shall not reouire nages in excess 
of $12 per v;eek. 

(5) Not to pay any emplo--ee of the clr-sses mentioned in paragraph (3) 
less than 40 cents per hour "unless the hourly rate for the same class of 
work on July 15, 1929, was less than 40 cents per hour, in which latter 
case not to pay less than the hourly rate on July 15, 1929, and in no event 
less than 30 cents per hour. It is cursed that this paragraph establishes 
a guaranteed minimum rate of "Day regardless of whether the employee is com- 
pensated on the basis of a time rate or on a piece work performance. 

(7) Not to reduce the compensation for emploj'^ment now in excess of 
the minimum wages hereby agreed to (notwithstanding tha,t the hours worked 
in such employment may oc hereby reduced) and to increase the pay for such 
emr)lo3''ment b3'- an eqaiteble readjustment of all pay schedules. 

(8) Not to use any subterfuge to frustrate the sr^irit and intent of 
this agreement which is, among other thing'^., to increase employment by a 
universal covenant, to remove obstructions to coinmerce, and to shorten 
hours and to raise v/ages for the shorter week to a. living basis. 

(9) Not to increase the price of an-^ merchandise sold after the date 
hereof over the pric3 on July 1, 1933, by more than is made necessary by 
actual increases in ■:iroduction, replacement, or invoice costs of merchan- 
dise, or b-' taxes or other costs resulting from action taken pursiiant to 
tiie Agricultural Adjustment Act, since Jul;- 1, 1933, and, in setting such 
price increases, to give full weight to probable increases in sales volume 
and to refrain from taking profiteering advantage of the consuming public. 

(10) To sup;oort and patronize establishments which also have signed 
this agreement and are listed f,s members of N.R.A. (National Recovery 
Administration) . 

(11) To cooperate to the fullest e:-;tent in having a code of fair com- 
petition submitted b-,- his industry- at the earliest possible rate, and in 
any event before Seritember 1, 1933. 

tl2) IThere, before June IS, 1953, the undersigned had contracted to 
purchase goods at a fixed price for delivery during the period of this 
agreement, the underrigned will make an ap-oropriate adjustment of said 
fixed price to meet- an""- increase in coot caused lay the seller having signed 
this President's Reemployment Agreement or'^-having become bound by any code 
of fair coraT)etition a-ooroved b','- the President. 
9759 



<e 



-91- 



(13) This agreement sar.ll cecse u'oon rxiDrovrl bv the President of e. 
code to which the "undersigned is subject; or, if the F.H.A. so elects, 
upon submission of a code to rhich the undersigned is subject and substi- 
tution of any of its provisions for rjiy of the terms of this agreement. 

(14) It is agreed that an;^ person rrho r/ishes to do his VLXt in the 
President's reeraplovment drive liy signing this ^^greement, but vho a.sserts 
that some particular provision hereof, because of peculiar circumsta.nces, 
T7ill create great and unavoidrble liardship, may obtain the benefits hereof 
by signing this agreement and putting it into effect and thon, in a peti- 
tion approved by a. representative trade association of his industr/, or 
other represents.tive organization designated by iJ.H.A., mcj apply for a 
st?y of such provision pending n. siommary investigrtion by F.E.A. , if he 
a.grees in such application to abide by the decision of such investigation. 
This agreement is entered into pv.rstiant to section 4(a) of the national 
Industrial Recovery Act and subject to all the terms and conditions reouired 
by sections 7(a) and 10(b) of that act. 

Dated , 133::. 

(Sign here) 



(i\^;'jae) 



(Official oosition) 



(Pi 



rm ana corDor^'tion name) 



(industry or tra,de) 



(Number of employees at tae date of signing) 



(street) 



(Tovm of city) (State) 

CERTIFICATE OP COlPLIAiTGE 

l/7/e certify thr.t "e hrve adjusted tne hours of labor axid the '"'ages 
of our employees to accord with the President's Reemployment Agreement 
^nich ve hrye signed. 



(:-r:.e) 



(street) , (Pirm Name) 



(Tov:n or city) (State) (industry or trace) 



DO ]"0T iAIL - DELIVER TO POST OPpICE 
on or after A^ogust 1 and receive insignia, of membership 

U. S. Government Printing Office: 1933 
16-937 

9759 



AFP£1DIX £ 

, co...:^i.,'Ts on pra except io"..ts 

BY 
L. S. Lightner 

June 12, 1935 

Early in August, 1933, the Exception Section, Blue Eacle Branch, was 
organized to handle req-aests for exceptions to the President's Reenploy- 
ment Agreement provided for in Paragraph 14 thereof. That paragraph reads: 

"It is agreed that any person who wishes to do his part in 
the President's reemoloynent drive by si^,nin£ this agreenent, 
hut who asserts that some particular provision hereof, "because 
of peculiar circunstniices will create grea.t and unavoidahle 
hardship, may obtain the benefits hereof by S'ignih^ this agree- 
ment Olid, putting it into effect and then, in a petition approved 
by a representative trade association of his industry, or other 
representative orgrnization designated by I'cE.A. , may apply for 
a stay of such provision pending sumnaxy investigation by N.R.A. , 
if he agrees in such application to abide by the decision of 
such investigation. This agreement is entered into pursuant to 
section 4(a) of the ilational ■ Industria.1 Act and subject to all 
the terms and conditions required hy sections 7(a) and in(b) of 
that act. " 

I . Activity Prior to Organization of Local Compliance Boards . 

The Exceptions Section 'vas established after a large volume of 
petitions had been received 'oy the Administration. It consisted of a chief, 
a chief cler':, several analysts, several stenogra'ohers and/or typists and 
several file clerks (numbers v:ere om.itted because of much shifting among 
the personnel at that time.) The Section was londer staffed — particularly 
small for the large volurae of work on hand. 

In the beginning requests for exceptions xiere sent to Washington when 
approved by representative trade associations and/or Chambers of Commerce, 
and some 26,000 such petitions were received and haiidled here. Fnen approv- 
ed by a trade association and/or Chamber of Commerce an exception became 
effective immediately pending ICIA action on the petition. 

The written requests received were cari ed, read and grouped. Most 
of the cases were denied by IfflA, s\ich action being necessitated by in- 
correct preparation and lack of sufficient information .and because of the 
exorbitant requests made. With exception of the estimated 100 positions 
granted bj'- the Blue Eagle Branch, multigraohed form letters (numbered) 
were directed to the petitioners in all instances. iTo copies of the multd- 
graphed letters used were made but the number of the form letter (indicat- 
ing the decision) -.vas noted on the petitioning letters and on the 3X5 cards 
for the records. Dictated letters were written on the cases granted, copies 
thereof were retained, .njid notations were made on the cards. By October, 
1933, the petitions approved by trade associations and/or Chambers of 
Commerce received finpj. action by 1-JHA. 



9759 



-93- 
PRA Exceptions. 

Local Compliance Boai'ds v/ere organized tliroUiq;hout the country in 
September, 1953, and in October, 1935, ^e "be.-an receiving petitions on 
vaich decisions had been rendered by these Bonrds. 

The follo^Ting fi^ires are approximate but very closely cover the 
volume handled before the Local Compliance 3om"d set-up: 

Total Ho, approved, usually as the result of personal interviews 100 

Total Ko. denied, i.There discretion was necessary 800 

Total i?o. sent to Cdupliance Boards 12O0 

Total Ko. denied, approved, code intervened; substitution granted; 

def icienty ■ in petition; 7(a) co.seE; child Ip.bor cases 24200 
Total wo. of petitions approved by trade associations, or Cham- 
bers of ConnercR, etc. 2600O 

1 1 . Activity After Organization of Locnl Con-p l iance Bo ards and 
State iraA Offices 

hllA Bulletin Fo. 5, dated Septeiiber 12, 1933, contained the Adminis- 
trations regulations on procedure for Local Compliajice Boards. Those re- 
g\ila,tions stated that after Sei^teraber '12, 1933 "no petitions shall be pre- 
sented to or accepted by trade associ-ations, Cliambers of Coimerce, or ajv/ 
other organization" — meaning, other thaji the ap'oropriate Local Compliance 
Board. Section 2 of that Bulletin covered the functions of those Boards in 
connection with petitions for e::ce;)tions. Section 3 'thereof pertained to 
L.C.B, functions relative to petitions for permission to ooerate under a 
Union Contract (application for permission to operate under Union Contracts 
entered into prior to June 16, 1935 — contr;ii'y to PRA provisions were 
handled by HHA in the same manner as an application for relief in cases of 
individual hardships filed in accordance with and under Paragraph 14.) 
In short (a) if a Local Compliajice Board approved an exception the petition- 
er was informed of that fact and allowed to operate under the PEA as 
modified by his exception pending fina.l action by IfflA: ("b) the original 
petition, R.ccoraijajiied hy the Local Board's corvient and/or written decision, 
was mailed to Washington; (c) if a Local Compliance Board disapproved the 
written request for e::ceotion the petitioner was informed and the original 
petition, accompanied ""oy the Board's comment and/or written decision, was 
mailed to Washington; (d) no group exception was pernissable since Pa.ra- 
graph 14 covered cases of individua,l hardships onlj'-. 

A reorganiz?_tion "-ithin the Administration tool: place in October, 
1933, — a National Compliance Director was appointed, a ilational Compli- 
ance Board was organized, and a Labor Branch was established. Thereupon, 
the former Exception Section became a part of the Labor Branch. It was 
charged with the duties of analyzing petitions',: presenting them to an 
Exception Committee for final determination, and cs-rrying on correspondence 
relative thereto end/or relative to general exception matters. The Excep- 
tion Committee was n,ppointed by the ITational Compliance Board and its 
decisions carried the sa,nctions of that Boeird. The Committee was composed 
of a labor member, an industry member and aia impartial chairman. 

9759 



•94^ 



PHA- 3;:ce;Ttions 



Upon receipt of a petition the case was carded, jacketed and routed 
to the stsiT of analysts for review, analysis, reconnendation ^nd presen- 
tation to the Ercaption Comnittee. This action took place on all cases 
received except the following: (l) ei.ception from paragraphs 1, 8, 10, 
11, or 13 of the Presidpnt's Agreerent; (2) reqxiests for an exception 
from, or statement of an interpretabion of, or understanding of Section 
7(a) or Section 10(b) of NIEA; (3) cases vrtiere approved codes had inter- 
vened; (4) requests for exceptions for a limited period the duration of 
which had expired — such petitions v/ere autonptically denied without 
presentation to the Comraittee. 

In decidin.T upon the cases presented to it the Exception Committee 
followed very closely the principles set forth in the attached memoran- 
dum. (Exhibit I). It had authority to mal':e the final decision, either 
granting, modifying or denying a petitioner ' s request. Appeals to 
formal decisions made-'were reconsidered by the Committee in the light of 
any additional information furnished. In some instances, however, bad 
cases were formally presented to the National (Compliance) Board itself 
for determination. 

-^ When the Exception Section of the Labor Branch obtained the Committee's 
decision the analyst handling the case drev; up a t^^pewritten letter inform- 
ing the petitioner of iC.I' s decision on his request. These letters follow- 
ed' six forms prepared for the purpose. These form letters were flexible 
and coiild be made xo fit the various cases received. A carbon copy of 
the letter addressed to the. petitioner was directed to the Local Compliance 
Board for its infornation and aiiother copy Yins made a part of the Adminis- 
tration's file' thereon. The folder containing the vrritten request was 
marked on the outside - "approved" j "modified", or "denied" — and proper 
notation vras made on the 3X5 card. 

In the spring of 1934, after the President's Agreement had -been 
extended by Executive Order, the Local Compliance Boards' functions in 
connection with exceptions were carried on by our State l-JHA Compliance 
Directors. Many of these Boards were retained, however, in an advisory 
capacity for a time but without authority to grant exceptions in the 
first instance. 

The following figures' very closely show the activity on petitions 
received from Local Compliance Boards and State Directors up to the 
present time: 

(1) Total number of petitions disposed of' automatically: (l) in- 
terveing codes; (2) unanimously denied by Local Complinnce 
Boards; (3) specific period terminated; (4) 7(a) cat-'es; and 

(5) child labor cases. 2919 

(2) Total number of petitions disposed of on merits as follows: 

(1) approved 445 

(2) a^Jproved vdth modi- 
fication 1014 

(3) disapproved 697. 

* 2156 2156 

9759 , , 



-95- 
PRA exceptions 

(3) Total ntmber of petitions (analyzed) pending Ua^r 28/35 2 

(4) Total mom'ber of petitions received from Local Conpliance 5077 

Boards and State IIEIA Comoli-^jice Directors 

III. Gji;I"£RAL 

There is attached (Sxhitit II) an unofficial list of industries for 
which no Codes nere approved as of May 21, 1935. The raenhers of these 
industries are still covered hy the President's Reeinployraent Agreement in 
those instances 'There the Agreement was signed and Executive extension 
thereof agreed to. The Eesen,rch and Planning Division, 'MA, has estimated 
that in 1929 approximately three million i?rorkers were employed in these 
uncodified industries. 



L. .3. Lightnsr 



9759 



June 3, 1935 

uro:^riciAL list of 

UKCODIJISD I?^UST?J-;S AS OF 
i,:ay 21, 1255. 

Advertising Agencies 

Abstract and Title 

Aircrrft I/xinufpctiiring (Cocle ^ending) 

Amusement Park 

Anthracite Coal 

Antimon;^'- 

Apartment House 

Armored Car Ti-ade 

Aucti oners 

Balcers & Confectioners Su-o-^lv (Local Code) 

Baking Povfder Industiy (Code pending) 

Beauty Shop Trade 

Bell Tele;ohone 

Biscuit & Crackers Lifgrn. (Code pendin^:-;) 

Bofoed nr.6. Regular Hairpin Industr5'- (code withdrawn) 

Butter Distributing 

Butter Ifeaiufrcturing 

Cane Sugar defining 
Crahon Pp'oer cz Ink Hiboon 
Casein & Plastic Buttons 
Cast Stone 

Casualty l2 Suret:' Insurance 

Catholic Rfulisners t"; Dealers in Church Goods 
Cemetery 

Central St-tion Electric Protection 
Chickens - Brby Chick Hatchory 
Circus & Crrnival 
City Directory 
Closet Accessories 
Coat Front iianufacturing 

Coconut Oil P.efininf" c: Processing (code pending) 
Coke Manu^acturi^.g 
Comfortable lianufacturers 
Commercial Art 
Concrete Burial 7au.lt 
Conf e c t i one r'/ Llanuf ;: c turi ng 
0onfectioner7 Liquid-Tight Containers Mfgrs". 
Corn iiilling Industr^r (Joint Code - pending) 
Corn Oil Paciiing (Local Code) 
Corn Products i^efining 

Cornstarch Packing Ilachinor- (code pending) 
Corn S-'-ruo Packing & Kixing (pending Code will be 
design;^ted as "Table Synap Paclcing & I'lisir^") 



9759 



Cotton E::chr.nges 
Cotton G-inners 
Cotton Seed Crushers 
Cotton Seed Oil Refining 
Cotton "^".rehouse 
Custon Brolcers 



Ice Cream Hr.nirfr.cturing 

Independent Telephone 

Industrir.l Desisn 

Inl'^nc. W'ter Petroleum Cr^.rriers 

Incuranoe jigents 

Insurance Brokers 

Iron Ore IJinin^ 



Dancing Schools 
Delicatessen 
Dental Profession 
Dredge & Floating Plant 
Dress Designing 
Dressed P&ultiy Receiving and 
Distributing (Local Code) 
Drive-I t- Your self 
Dvj Id Ik (Code Pending) 
Duplicating and Llailing 

Egg & Poultry (pending Codes v-ill te des- 
ignated as "Poultr3' & Egg" & Pacific 
Coast Po-altn/ & Egg.") 

Electric Light c"; Pov/er 

Electric Overhead Crane 

Employment Service 

Evaporated Milk 



Factors 

Feed Hay & Stra'v Distributing 

Finance Companies 

Fire Underwriters 

Flat Glass Distributing 

Florists' Equipment (!'o information 

available - is probably covered by 

general Wholesale Code). 
Flour Distributing (Code pending) 
Fluid Milk 
Folder Distributing 
Food Desserts (Code pending will be 

designated ps "Desserts Ind. ") 
Fomitain Pen & Mechanical Pencil 



G-as Operating Utility (Pending Code v/ill 

be designated as "Manufactured Gas Ind.") 
Gold Mining 
Grocery Mrjiuf rcturing 

Hauling & Carloading & Forv/arding 

Companies (Local Code) 
Eery^r Forging Manufacturing (Pending Code 

designated as "Open Die Forging Mfg." 

vi thdrav/n) 



9759 



Jeweled T.'atch 

Land Development 

Leaf Tobacco Dealers 

Legal Profession 

Live Stock ilarketing Agencies 

Life Insar.-^Jice 

Locksmiths 

Hr,nuiactured. Gas 
Marine Insurance 
Meat P Ticking 
Medical Profession 
Metropolitan Mill Marine & 
Contractors Supplies (Loc- 
al Code) 
Milk Sugar Manufacturing 

(Local Code) 
Millinery Ornament & Trimming 
Mirror Mrjiufrcturing 
Morris Plan Brokers 
Latup.l Insurance 

Ifctural Gas 
iiavrl Stores 
Furser^-men 

Ocean Pearl Button 
Office and Loft Building 
Oleomargarine (Joint Code ~ 

pending) 
Osteopathic Profession 

Package Cereal Mrxiui"acturing 

Paper Dress Pattern 

Pawn-Brokers 

Personal Finance 

Ph:-sic-.l Conditioning 

Plartic Fabricating 

Portrait 

Poultry Eauipment L'fg. (Fo 

information available) 
Precast Reinforced Roof 
Prepared Lfustard (Code Pend- 
ing) 
preserves & Minceraert Mfg. Ind, 
Pulp Wood 



?LrT.- Coito.: Tr-;e (Joi;:t Goc e- lenc.in-;) 

Ptenderins 

3e E i c e: 1 1 Ju'- s t p. 

71etr.il Con.'.'ectio:iers 

:iet'\il j7eed Dirtribatin::- (Joir.t Cooe- Denolng) 

Hetail Plorists Trcde 

2etrll Traits u Vegetables (Locn.l Oocie--oenc'in,'r) 

:iet^il Liqvior Tr-de 

Ribbon & Notion ITovelty (Code-\7lthdravm) 

Sice Milling Industry (Joint Code-v/itlidrann) 

Sauspge Products & Prepared Meat 

Saw Service 

Shipping 

Sho--:er Curtain Kanufactiiring 

Ste-.ric Acid (Code pending) 

Stevedore 

Stock lards ■ ' % 

Synrp Blending C: Kolasfjes 

TaJvicab 

Ta-xidermist 

Tfea Industry (Code Pending) 

Telegraph Comnunication 

Telephone Conpnnies (Code pending) 

Tourist Lodge &. i.Iotor Court Trade 

Towing Industrs'- 

Vegetable Oils ;,:.-nufacturing 
Vinegar Llanuf acturing (Code pending) 
Viscose Extraction 

'Jater Supply 

Water Supply Utilities g 

ITater "iTeli Drilling " 

Weaving Specialties Lifg. (Code withdrawn) 

Wholesale Drug 

Ttholesale Plorists 

'/indow Gleaning 

Wood Tajik 



8759 



-90- 

APPEZTBIX 



OFylCS OHDIS iro. 37. 
J-une 28, 1954 



Service Trc 



1. The determination of "localities" -andcr Executive Order Ho . 
6723 is iaerelDy delegated to the several Divi::.ion Administrators 
havin:'; jurisdiction oi any trades or industries designated under 
said Executive Order. 

2. Consideration shall be --iiven to proposals of local 
codes under said Order when said proposals are based upon agreement 
of eighty-five per cent (85,j) of the members of the particular trade 
as such members are defined in the code involved. 

3. V/hen local cedes of fair tirade practices for localities are 
submitted v/ith proper agreement from the members of the trade for any 
locality Luider said Order, such local codes nay be approved by the 
Administrator, if deemed by him to tend to effectuate the purposes of the 
Act and vifithout reference to an-^ advisory Board vlien found by the Reviev; 
Division to be in conformity v/ith existin;;: IIHA policy; and othenvise 
shall go through normal procediare. 

4. iJRA insignia heretofore removed for violation of trade practice 
provisions should be restored and any such removal actions pending should 
be discontinued, in cases v/hcre satisfactory evidence is obtained indicet- 
ing present compliance vi'ith the applicable labor prrKvisions. 

5. Remova.l of IIRA. insignia for violation of the labor -orovisions 

of such codes or any such local codes, .iay be. effected by State Compliance 
Directors subject to ap-^eal to IIRA coi-yliance Division. Su.ch Action must 
be based upon adenuate evidence but removals must be prompt in all cases 
where satisfactory evidence is obtained and proper restitution is not 
made forthvYith. 

By direction of the Acbninistrator; 



Ct. a. Lynch, 



9759 



-IOC- 
AFPSIIJIX F 1. 

ITATIGlLiL HJC0V;:RY AD:.iIi!lST2ATI0H 
VJASnillGTOiJ, D.C. 

Dear Sirs: 

V/e v;ish to confirm the ■anderstanding of members of your trade that 
your Code lias been designated to come under the President's liiecutive Order- 
of Llay 26, 1334, suspending until further orders all i^rovisions of the 
code exce-pt those Qo^erninr child labor, establishing maximum vjorlcing 
hours and minimum v/age rates, guaranteeing; the right of collective bar- 
gaining, and reserving to the President the right to cancel or modify any 
code or agreement. 

Each member of the Trade complying with the non-suspended provisions 
will be entitled to display the appropriate iTational Recovery Administra- 
tion insignia for the Trade. 

The Executive Order of May 26, 1S34-, also makes possible the adoption 
of local codes of fair trade practices submitted b'^ members of the Trade 
for their locality if 35 j of such merab' rs enter into an agreement v/ith 
the President to abide by the local code nf fair ti-ade practices for 
their locality, and such agree.iient shall have been approved by the Admin- 
istrator. Approval r.i8.y be requested of any fair trade practices which 
the members of the trade ma.y wish to. adopt and to which they subscribe. 

Upon arproval bjr the Administrator »f such an agreement, no member 
of the Trade in sucli locality shall be entitled tn display the appropriate 
ITational Recovery Administration insignia for tioat Trade unless, in add- 
ition to the aforesaid non-suspended pravisions of the code, he is com- 
plying viith all the terms ^f such loc;l agreement. 

Realizing that many members of the Trade ms.y not be entirely famil- 
iar with the procedure to be follr«wed in effectuating, the purpose and 
intent of the President's Executive Order of May 26, 1934, tho following 
steps are suggested in order to secure consideration by the Administrator 
of an a^reemont between members of the Ti-ade and the President of the 
United States for a schedule of local fair trade px-actices. 

1. Tlie proposed schedule of local fair trade practices should be 
submitted and sponsored by a responsible local group. This group may be 
authorized to cooperate unofficially with the ITational Recovery Admin- 
istration in the coorcination and execution of the program under the 
Executive Order. The names, addresses and connection with the Trade of 
the group proposin; the local code of fair trade practices should be 
given, together with proof tliat the coi'jnittee or local assaciation is 
truly re-jresentative of the Tr.vd.e in the locality, 

2. Every effort should be made ty the srjensors of the fair trcde 
practices to reconcile t?ie conflicting opinions and points of view of the 
entire trade within the designated boiondaries, in order that there may 

be as cohTolete agreement as possible on the .^art of all members of the 
Trade . 



-101- 

3. Vfiien sii'omittin.r^ a schedulo of fair trade practices the locality 
that the s^Dor;3ors vdsh to oe covered hy the a,':reenent should he clearly 
defined hy reference to corporate liiiits of cities or tovms arid the legal 
boTondaries of counties or similar I'^pvl s\i:divisionr. . 

4. Tlie local schedules of i?ir trade nr^ctices, wherever suitahle 
to the need3 of the locality, should conform to the practices originally 
conts-ined in the approved code, provided hov;ever, tnat practices, in- 
cluding those relating to mininoin prices, will oe a-p-roved only in accor- 
dance with existing National .Recovery Administration policy on such matters. 
TI7h-en origijially suhmitted, such schedules shoujd not include the renuired 
percehta/^e of signatures of the menhers of the Trrdo. 

5. Upon receipt of the local schedule oy the Service i'redes Scetlor, 
it will be analyzed and returned to the corE.ittoe with our su ..pestions 

as to what should he deleted and what should he included so as to assure 
its conforming v;ith the purj^ose and intent of the President's Executive 
Order May 26, 1S34, and at the same ti::ie ;ore3ervin.::; as far as possit-le 
the iiitent and desires of the mem'oers of the 'Trade in the locality des- 
ignated in the local code. If thr- coj..-.iittec desires to s-)onsor the 
schedule as revised, it must do so in v/riting and again suhmit the )ro- 
posed schedule with its written assent thereto for the co isideration of bhe 
Administration. In addition, the Service Trades Section must he furnished 
v/ith a list of the naj.ies and addresses of those memoers of the Trade Iniown 
to the sponGorlng group to be dissenters to the -Tro-:)Csed local schedule. 
It is our intention to coLiTonicate with members of this dissenting group 
to ascertain their views concerning the terms of such schedule. 

G. If acce-Ttshle to the Adi'iinistration, tlie schec'ulo will he re- 
turned to the corxiitti.e together ■'v/ith a form of agrecmcr-t "reparcd by the 
Adiiinistration. The co;.inittee irrast then obtain signat'-aros an.d addresses 
of the signatories to the proposed agreoj.ient of not less trian 85;..' of the 
members of the Tr-^^e, bv number, in that locality, aft .r obtaining such 
signatures and addresses, the co:-.-L.dttee should then forv/ard to the Admin- 
istrator the proposed agreei.ient signed by 85^j or nor?, of the menberso 
of the Trade in the locality de£i;nated in the local code, together with 
adeouate proof thi\t such signatures are authentic and in fact do rejresent 
not less than 85''j of thj members of the Trade in that locality. Acco^I^- 
anying this, the sponsors should also forward the names and addresses of 
those members of the Trade in the locality who have not signed the agree- 
ment. Upon the AdLiinistrator' s apxn-oval, the proposed schedule will then 
became effective as the code of fair trade prcictices for that locality 

Y/ithdrawal of the right to dis^-jlav the appro-Tri£.te national Recovery 
Administration insignia v;oifl.d he the normal method of dealing vdth code 
violations. If such ',7i thdra,wal should not be effective, the Adi'ninistrator 
v;oia.ld be governed by the particular circui.ictances involved in determing 
tha.t further action should betairen. 

In states hii-ving llecover" Acts under v/hich the non-suspended pro- 
visions of the code and any agreement entered into -.vith the Presic'ent 
are effective as a State Code, enforcement may be sought in the state 
courts . 



9759 



We lio:-)e thc.t this states. levxt clarifies the status of your Code and 
thc-t it will assist you in ansvjeriii;:; inquiries received from inemhers 
of the Trade . 

Yours very truly. 



Assist ant Deputj^ Acmi ni s t r^.,t o r , 
Service Trades Section. 



9759 



AFFIDAVIT ACCOIvIPAIJYIiTG PZTITIOit FOR APPROVAL OF LOCAL CODE 

of 
FAIR TP.4DE PRACTICE 



STjvTE of I'TEVJ YOM, 

COUIJTY OF ROCKLAKD 

MOPJRIS RIIT7, 'binp; duly sT/orn, deposes and saj-s, that he in the 
president of the Rockland County Cleaners & Tailore Arsociation, Inc. 

That on October 5, 1934, deponent submitted a local Code of Fair 
Trade Practices on "behalf of the members of the cleaning and dyeing 
trade of the Rockland County-, Itov York, locality, which action of code 
trpi-.sraission T;^'as authorized by the Rockland County Cleaners & Tailors 
Association, Inc. 

Tliat u-non receipt of the form of petition of agreement attached 
to. schedules "A" and "B" deponent caused such petition to be circulated 
among the cleaners and tailors of Rockland County; that su.ch petition 
T7as signed by forty (40) cleaAers and tailors vfho do business in Rockland 
County, i-Jew York. 

■ That to the best knowledge and information of deponent there are 
forty-one (41) cleaners and tailors doing business in Rockland County 
and that, therefore, the signers of this petition constitute at least 
eighty-five (85) per cent of the cleaners and tailors in Rockland Coivnty. 

Sworn to before me this 2od 
da5'- of I'lovember, 1934 



1 'orris Ring 



(Signed) Samuel Miller 

l-'otar-y Public 
Rockland County 



9759 



APPEfjIX 



IF T:HE i.iilTTZ?- OF 

The Cler,ning end D-'eing Trr.de " Petition for Adjninis- 
In r,nd for the State of I'evr York trr.tive Approvr.l of 

Locr.lity RocI:lr.nd County " Local Code of Fair 
Described rnd "bo-arided rs follo'.vr.: Trade Practices 

Rockland Cofntv. 



TO TIE I'ATIOl^AL Il^USTRIiiL ■'ECOVERY BOARD: ■ ■• 

Your petitioners respectfullj'- shcv: "s follov'r;: 

On the £6th day of kay, 1934, the , President of the United States 
issued Executive Order 5723, wherein it is provided in prrt that: 

"* * *in a.ny locality, in vmich 85,j of the •nemhers of r.ny such de- 
signa.ted trade or industry shaj.1 propose to agree Tilth the President to 
abide by any local qode of fair trade practices suggested by them for that 
locaJity, which schedule shall have been approved by tiie Administra.tor, 
the Administrator is authorized to make such agreement, and thereafter 
no member of such ind^istr-'- in cuch loca-lity sha.ll be entitled to display 
the a^ppropriate insignia of tac l-Iationa.l Recovei^- Adrainistra.tion unless, 
in addition to the . . . non"'=!UST)ended provisions of the Code, he is 
complying v/ith a.ll terms of such agreements." 

On the 28th day of May, 1954, the Administrator for Industrial 
Recover;'-, pursua^nt; to said Executive Order issued Administrative Order 
X-37, wherein the Cleaning and Dyeing Trade \7,,s designated to be proper- 
ly included within the puroose and intent of said Executive Order, thereby 
making said Executive Order applicable to said Trrde. 

To effectuate the policies of Title I of thu N.-tional Industrial 
Recovery,'- Act and in accordance vdth the terms of said Executive Order, 
the undersigned members of said Trade of the State of Kev; York, County 
of Rockland, submit herewith, for the approval of the National Industrial 
Recovery Boa.rd (hereinafter referred to as the Boa,rd) , aJi Ezchibit con- 
taining a Local Code of Pair Trade Practices which is attached hereto and 
marked Schedule "3". Ea.ch of said members of the Trade halving examined 
sa.id schedule a,nd the terms of this petition and agreement, hereby a,grees 
with each other such member and with the Board on behalf of the Presi- 
dent of the United States: 

1 (a). To comply with er.ch and every non-suspended provision of 
the Code of Pair Competition for the Cleaning and Dyeing Trade, and with 
everj?- rule, regulation, exemption, exception, modification, condition, de-- 
termination and interpretation issued thereunder. A cop;'- of the non- 
suspended provisions is a.ttached hereto as Schedule "A". 

1 (b) To comply with each ajid every provision of the Local Code 
of Pair Trade Practices approved b^^- the Board for his Trade in said lo- 
cality, and v/ith every rule, regulation, exemption, exception, modification, 
condition, determinr-.tion, r^nd interpretation issued there-onder. 

2. To keep accur.-te and complete records of hours worl^ed and wages 

9759 



■lOB'- 



received "by his enroloj^ees, aiid to furnish 
when reoiiired b^'- the Board. If the 3 card 
tial douht exists as to the accuracy ofan^,'- 
for the verification of such re'oort t le r..'. 
nation of so much of the pertinent hooks, 
her as the Board may deem necessar-^, end t 
submit such books, records, and papers 'vlie 
case shall the facts disclosed bv such exa, 
identifiable form to an^^ competitor or be 
ce-pt such as ma-/ ce recuired for the "orooe 
of the non-suspfended ■ provisions of tne God 
Cleaning and Dyeing Trade. 



a,Gcurate reports based thereon 
shall determine that substan- 

such report, the Board nay require 
bmission for tae Joards exami- 
recorc^s and paoers of such mem- 
he member of the Trade agrees to 
n reauired by the Board. In no 
mination be made o.va.ilable in 
given any other publication ex- 
r administration or enforcement 
e of Pair Comoetition for tae 



3. In the event that the Board shall approve a petition of not less 
than 20;'^ of members of the Trrde in snid locality praying the tri thdrav/al 
of the Local Code of Ja.ir Trade Practices, clause 1 (b) of this agreement 
shall be null, void, and of ;?o effect and shall terminate as a part of 
this Agreement. 

T7HERE?0RE, your petitioners prav that approval be given to said 
Local Code of Fair Trade Practices. Supporting briefs, memoranda, and 
other evidence are hereto attached in substantiation of the fairness end 
reasonableness of said Sched^ile. 
Dated this 19th daj^ of I-Iovember, 1954. 



Divi.sion 






Address or 






of Trade 


Signature 
ivlorris Ring 


Print iJarae 


Firm Hame 






H & T 


■Morris Ring 


18 3. VI ay, Have 


r 








strav/, Y. Y 






R & T 


H. Weinberg 


H. "Weinberg 


Ha.verstranjf, 


N. 


Y. 


R & T 


B. Binn 


B. Binn 


Haverstra;,7, 


1m. 


Y. 


R & T 


i'l. Clabby 


li. Clabby 


Haver straw, 


F. 


Y. 


R & 1 


Joseph Bos so 


Joseph Bos so 


Haverstraw, 




Y. 


R & T 


Fraxik C. 5t»\'-ane 


Frpiak C. Stevane 


Haver straw. 


li. 


Y. 


R & T 


Samuel Besser 


Samuel Besser 


Ha.ver straw. 


i''. 


Y. 


R & T 


Earn'- Aaron 


Ham^ Aaron 


Haver straw, 


i^ 


Y. 


R & T 


Eli as Tev/man 


Elias lle'.7man 


Haver straw, 




Y. 



STATE OF i"E7 YQ-Jti:, : gg.. 

COITfTY OF ROCkLAlT). : " '' 

Morris Ring, being first dul]/ sworn, deposes and says: (l) Hiat h.e 
personally presented the attached petition to each person whose name 
appears above; (2) That he personally saw each person '-ho^-.e name r.ppears 
above sign the same; (G) and- That each signat-ure hereon is the true 
signature of each signer: (4) and That each of the said signers is a mem- 
ber of the Cleaning and Dyeing Trade in Roc.;land Count^'-, i'"ew York. 



Subscribed and s'-'orn to before me 
this 19th day of "ovember, 1934 

(Signed) Samuel ihller 

Fotary Public Rockland County 
My Commission expires the 30th day of l.'I 



(Signed) I.Iorris Ring 



9759 



■^106- 



Division 


. 




Addres 


s or 




of Trade 


Signature 


Print li rae 


Firm Name 




R & T. 


George P.oosevice 


George Rcosevice 


Fyack, 


New 


York 


S S: J 


A. B. Ivia.t thews 


A. 3. I-Iat thews 


Hyack, 


New 


York 


R & T 


Jack Hacker 


J?ck Hecker 


ITyack, 


New 


York 


R & T 


Kajr-l Kessler 


Karl Kecsler 


liyack, 


New 


York 


R & T 


John Eh ret 


John Ehret 


Nyack, 


New 


York 


R & ,T 


Max D ruler tz 


Max Drakatz 


Kyack, 


Nev/ 


York 


R & T 


Jack ^"'einstein 


Jack Weinstein 


Kyack, 


New 


York 


R & T 


Jacob Schneider 


Jacob Schneider 


Jyack, 


New 


York 


R & T 


Tony Aparo 


Tony Asaro 


Kyack, 


New 


York 


H <i T 


7alter C. Blo^mt 


'Zalter C, Bloimt 


Jlyack, 


NeiT 


York 


R & T 


iviorris Maltz 


iviorris Kaltz 


ITjrack, 


New 


York 


R & T 


Joseph Soose 


Joseph Boose : 


l^^rack, 


New 


York 


R & T 


Isidore Shefslc^^ 


Isidore Shefskj^- 


ITyack, 


New 


York 



STATE OE ne:: yos:, : 

COITNTY OP ROCKLAirD. : ^^' 

Isidore Shefs^y, being first diily s'lorn, deposes and saj'^s: (l) That he 
personally "oresented the attached petition to each person whose name 
appears above; (2) That he personally saw ^ach person whose nane appears 
above sign tue same; (3) and That each -signature hereon is the true 
signature of each signer; (4) and That each of the said signers is a. 
member of the Cleaning and Dyeing Trade in Rockland County, NeTf York. 



Subscribed and svorn to before me 
this 1 cav of November 1934 



I si do re Shef s!:^/ ( Signed) 



(Signed) Henr:/ Epser 
Notary Pablic 
Rockland .Countj'^ 
ivij"- Comraissioji exiDircs the 30th 
day of March, 19-35. 



9 7. '39 



-107" 



Division 






Address or 




of Tvc. 


,de 


Si,2;natur3 


Prirt r-YiG 


Fim Hajne 




R & T 




Joseph Kelmf^.n 


Joseph Kelroan 


Kaverstravr, 1?. 


T. 


R & T 




G. E. Buttress 


G-. S. Buttress 


Suffern, IT. 


Y. 


R & T 




Cirr^/- Pplraaraszo 


Cari;^,^ Palmarazzo 


Suffern, iJ. 


Y. 


R & T 




l^.x a. Weber 


Max G. T/eber 


Suffern, F. 


Y. 


R & ? 




Bahar Boyajy 


Bahar Boyajy 


Suffern, 


Y. 


R & T 




Sam Bon-Jell 


San 3onr.'cll 


Spring VaJley, 


LT 


R & T 




Sol she roil 


Sol Osheroff 


Spring Yalley, 


IT 


R & T 




Albert Goldraan 


Albert G-oldman 


Spring Valley, 


IPf 


R & T 




I. Usatch 


I. Usatch- 


Spring Valley, 


FY 


R & T 




L. C-oodstein 


L. Goodstein 


Spring Valle:^, 


IT 


R & T 




M. Heller 


M. Heller 


. Spring Valley, 


FY 


R & T 




■ Eenrj Shapiro ' 


Henr-/ Shr.piro 


Spring Valley. 


FY 


R & T 




Louis Forst 


Lou.is Forst 


Ranuet, II. 


Y. 


R & T 




Ernest Coaloa. 


Ernest Coaloa 


Pearl River, IJ. 


Y. 


R & T 




Ludwig Zistler 


Luduig Zistler 


Pearl River, IJ. 


Y. 


R & T 




John Spath 


Jolm Gpath 


Con^rers, N. 


Y. 


R & T 




Chas. ".7. ClimielniK 


Chas. TJ. Chmielnik 


ITev City, IT. 


Y, 


L 




A. D. Finkelstein 


A. D. Fin::el:i-tein 


Spring Valley, 


FY 


STATZ 


OF 


iTET YORIv, : . 
ROCKLAiff). : '^" 








coui:ty 


OF 









John Sirak, being first duly s'.:orn, deposes rnd sa)'-s: (l) That he personally 
presented the attached petition to each per'ron v/hose name appears above; 

(2) That he personally saa/ each person whose name appears a.bove sign the sajne; 

(3) and That each signature hereon is the trae signature of each signer; 

(4) and Tlaat each of the said signers is a member of the Cleaning and Dyeing 
Trade in Rocklaind County, uex! York. 



Subscribed and sjorn to before me 
this 19th day of Fovember, 19.'34 

(Si>rned) Samuel Mller, Fotar/ Public 
Rockland County - ivi;'- Commission expires ti 
30th day of March, 1935. 



ISi 



9759 



-103" 
fori: IZVT~R-20 in2 3ERS 0? SZHVICE :::ixiDE3, 

j:he:; t.-^' shoe iieeuili^iitg TiuUje 

HATIONAL P-SGOVIEY ADniVlSLTUTIOl-T 
Washington, L. C. 



Derr Sirs: 

Enclosed hererith olease find -iroyjs.ed schedule of local fair trnde 
■oractices as referred to in the -ictition jvhich you suhaiitted in behalf of 
your Trade as a.uthorized in E^tecutive Order Vo. 6725 of ■itiy 36, 1934. 
Inasmuch as sone ;irovisions contained in the schedule dri'anally sub- 
mitted by you a-Ti-)c&r co exceed the authority ranted under the above 
mer.tiOnfed Order, you vill note thrt coj'tairi revi>=;ions in said nro^TOsed 
schedule of fair trade -iractices ha^re .been; su^,gested for your considera- 
tion. ■ ■ . ■ . • • 

While no -'rovision is mrue for an Administrative organization under 
the Executive Ordt.r of Ilay 2j, it i^; r.Ui^^^ested tliat, if mt alrcadj'- done, 
there De formed a r'S-ionsible locrl ^ rou"), con-oosed of representative 
members of the Shoe .Hebuildin,., Trade in your degitinatied area v/ho wish 
to coo-ier^-te in an unancc Director in obtaining c'omnliance ?/ith the 
-orovisions of the locnl at^reencnt after it has been amroved. 

The above mentioned -iro-iosed schedule of fc.ir trad.e practices v/ill 
be trlcen un 'oy the Administrption only \-;hen the res-ionsible locrl i^rou-o 
has returned this schedule v/ith their assent to its' contents in v/ritint;. 
Ir. adcLition, this office must be furnished v;ith a list of the names and 
a^xdresses of those lacmbcrs ox" th(- Trade 'cnown to the S'Tonsorin^ t=roun 
to be dissenters to the jronooed schedule of fair trade ;-)ractices. It 
is our intention to conmunic^te \;ith members of this dissenting grouo 
to ascertain their vie\7s concerning the terns of the nro-iosed schedule. 

Every effort should je made by the "iro^oonents of the schedule of 
f'^ir trade practices to reconcile the coni'lietinti opinions and points 
of viev/ of the entire Trade \fithin the bound ries dosii.nated in the 
schedule, in order t?ir t there may be as complete a, .reement as possible 
on the part of all members of the Trr-de in res'iect to the terms of the 
pro-TOsed loca,! schedule of fair trad.e ■"'ractices. 

If acce:Ttable to the Administration, the ai^reement vrill bo returned 
to your s ionsorin^, <:<:roup tOj^ether vith a petition for agreement to be 
signed, v/ith the addresses of the si^^natorios, by not less thani eighty- 
five (85) per cent of the members of the Tr;?.de in the desii^nated area. 
Mhcn such si niatures and addi-es;jes have been obtained, the said ai^reement 
must be returned to this office for the Administrator's final anoroval 
and authoriz;aion, accora-%:)nied by 

1. Adeoii-'te -oroof that the si<:,ncitures and addresses appearing 
on the agreement are authentic. 

9759 



-109- 

Ividence tha.r, such si_,na'cures do in fact represent not 
less than ei^ht;,/-f ive (S3) y^r cent of che laemhers of 
the Tr;-de in thi; 3.oove :aentioned area. 

The names and addresses of those raembers of the ?ra.de 
in the above inentionel area v/ho h. ve not si>,ned said 
agT cement. 

Yours ver7 truly, 



De'outy Administrator 
Service Trades Sectioi 



9759 



Al^PEZlDIX J 

AP??.0'/ED CODE NO. 101 

AGHEBf/IElJT W. 2 

LOCAL CODE 0? Fi^TP. THADE PRaCTICES 

FOR THE 

CLEAI'INC- AlTD DrEIIfG TRALE 

III 

HOCKLAI'D COUIItY, i'EW YOHK 
As Approved on January lu, 193o. 

Approving a Local Code of Fair Trade Practices for 
Mernoers of the Cleaning and Dyeint, Trade within the 
County of Eoclzland, State of '"ew York, and accepting 
Offer of Members of the Trade to abide by said Local 
Code under E-ccutive Order I'o. 6723, of iiay 26, 1934. 

A petition, pursuant to the provisions of Executive Order ilo. 6723 
of May 26, 1934, having been presented by members of the Cleaning and 
Dyeing Trade in that area described as including the County of Rochland, 
State of iTcw Yorlc, for ap-iroval of a Local Code of Fair Trade Practices 
and acceptance of an offer of agreement to abide by the lorovisions there- 
of together with the no r- suspended provisions of A-'r-'roved Code !'0. 101 
for this Trade, copies of cac]:: set of said provisions being attached 
hereto and n:arl:ed Exhibit "A'', and the national Industrial Recovery 
Board having found, 

1. Th^'t this Local Code of Fair Trade Practices and the 
agreement by and between members of the Trade in this 
area comply in all respects with the terms and pur- 
poses of the above mentioned Executive Order, and, 

2. Tha,t oighty-iive per cent (05f'0 of the members of the 
Trade in said area have signed the a.foresaid agreement: 

HOW, THEREFORE, by virtue of the authority vested in it by 
Executive Orders of the President, including Executive Order Ho. 6859, 
and otherv;ise, tlie National Industrial Recovery Board hereby approves 
the form and content of said Local Code of Fair Trade Practices, and 
accepts on belialf of the President, the offer of the members of the 
Trade in the above described area and hereby orders thn.t said agree- 
ment shall become binding as a.n agreement \".'ith the President, ten (lO) 
da,ys after the date hereof arid upon \^'hich affective date the further 
pertinent provisions of said Executive Order Fo. 6723 shall be in full 
force and effect. 

Fational Industrial Recovery Board 

By W. A. Harriman 
ApT>roval RGcoramcndcd: Administrative Officer 

Harry C. Carr 

Acting Division Administrator 

Washington, D. C. 
January 15, 1935 

9759 



-111- 
e:.{eibit "A" 

SCKSPTTLE "A" * 

iroiT-SUSPElIDED PEOYISIOrs OE THE CODS OE FAIR COi.ffE- 

TITIOII E02 THE CLEAl"IilG- AI'D DYEIITO THADE 

AS -APPROVED Oil KOVEi.EEl 8, 1933 

PPJSSIDEIIT PtOOSSVELT 

ARTICLE I 

PURPOSE 

To effectuate the policies of Title I of the I's-tional Industrial 
Recovery Act the following provisions (Schedule A) are established as 
a Code of Pair Competition for the Cleaning and Dj-eing Trade, and 
shall he the standard of fair co.-nnetitio:i for such trade and shall he 
binding upon every member thereof. 

ARTICLE II 

DEPIHITIOHS 

1. The term "cleaning and d,vein& trade" as used herein includes 
all cleaning and dyeing establishjnents. 

2. The term "cleaning and d^'-eing establishjnents" as used herein 
includes an;;'- place or vehicle where the service of d;^'ecleaning, v;et- 
clcaning as a process incidental to drycleaning, d^^eing, spotting, 
and/or finishing any fshric is rendered for hire, or is sold, re- 
sold, or offered for sale or resale. The term does not, hov/evcr, 
include establishments \¥herc any such service is ^icrformed solely in 
the course of the original manufacture of fabrics. 

3. The term "fabric" as used herein means any article of wear- 
ing apparel (includin,; hats), household furnishing, textile, fur and 
leather, 

4. The term "drycleanint," as used heroin n:eans the process of 
cleaning fabrics by iminersion and agitation, or aj imiaersion only, 
in volatile solvents (including, but not, by v/ay of limitation, sol- 
vents of the petroleum distillate tj'pe, the coal tar distillate tjroe, 
and the chlorinated hydro-ca,rbon type) and processes incidental 
thereto (including but without limitation, spotting, wet cleaning, and 
finishing) . 

5. The term "spotting" as used herein means the process designed 
to remove spots or stains which rema,in in a fra,bric after it has been 
subjected to the other processes of dryclcaning. 

6. The term "finishing" as used herein merns the process of 
pressing and/or reshaping any fabric, whic]! is designed to restore as 
nearly as possible the shape, dimensions, and contour of said fabric. 

9759 



7. The term "cleaning x^lant" as used herein includes any clean- 
ing and dyeins est.'^.blisliment cqui^Tiel to perfoi'K drycleaning. 

8. The term "retail outlet" ps used herein includes anjr clean- 
ing and dyeing establisluaent where drycleaning is sold, or offered 
for sale, directly to the consumer; the term "retailer" means any 
meiaber of the cleanin,':; and dyeing trade by and/or for whom a retail 
cutlet is operated. 

9. The term "member of the cleaning and dyeing trade" as used 
herein includes anyone engaged in the operation of a cleaning and 
dyeing establishment as above defined either as an employer or in his 
own behalf. 

10. The term "citiployee" as used herein -includes anyone engaged 
in the cleaning and dj^eing trade, i n any capacity, receiving com- 
pensation for his services, irrespective of the method of payment of 
such compensation. 

(a) The term "plant errroloyee" as used herein includes any 
employee working in a cleaning plant who is a.ctually engaged in dry- 
cleaning and/or d^veing or any of the processes incidental thereto and/ 
or is engaged in the maintenance of said plant (including, but with- 
out limitation, engineers, firemen, maintenance cnrployees, and watch- 
men) 

(b) The terra "clerk" as used herein includes an^r eraployce 
working in the office of a cleaning a.nd dyeing establishment who is 
engaged in work of a clerical, accounting, sales, or service character. 

(.c) The term "route salesman" as used herein includes any- 
one employed by a member of the cleaning and dyeing trade on a salary 
and/or commission basis to solicit the sale of the dry-cleaning service 
of such member, call for fabrics to be dry-cleaned and/or to deliver 
such fabrics, and/or to collect -payment. 

(d) The terra "executive" a..s used heroin includes any em- 
ployee responsible for the management of a business or of a recognized 
subdivision thereof. 

(e) The term "v/atchman" as used herein includes any em- 
ployee engaged primarily in safeguarding the premises and property 
of a cleaning and dyeing establishment. 

11. The term "employer" as used herein includes anyone by whom 
such employee is com]iensated or errroloycd. 

12. Population, for the purpose of this Code, shall be de- 
termined by reference to the Fifteenth Census of the United States 
(U. S. Department of Commerce, Bureau of Census, 1930). 

13. The terms "President", "Act", and "Board", as used herein 
mean, respectively, the President of the United States, the Fational 
Industrial Recovery Act, and the ITational Industrial Recovery Board. 



9759 



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jmTICLE III 

HOUR S 

1. ■ Except as hereinafter exnressly stipulated otherwise - 

(a) To engineer, fireman, and/or maintenance employee shall 
be permitted to work in excess of 48 hours in r.nj one week. 

("b) Ho clerl: errrployed "by any retailer shall be permitted to 
work in excess of 48 hours in any one week, 

(c) No route salesman in cities of a population of 25,000 
or more shall be permitted to work in excess of 48 hours in any one 
week. No route salesman in cities or tovms of less than a population 
of 25,000 shall be permitted to work more than six (b) hours per week 
in excess of 48 hours. 

(d) 1^0 other employee shall be permitted to work in excess 
of 40 hours in any one week. 

2. The maximum hours fixed in the foregoint; Section shall not 
apply to 

(a) Watcliraen. 



or 



(b) Executives receivint; a salary of $30 
more per week, including employers. 

(c) Employees on emergency maintenance, or emer- 
gency repair work involving breakdowns, or "orotection of life or of 
property, but in any such special case at least 1-1/3 times the normal 
rate shall be paid for hours worked in excess of the niaximui;i hours 
herein provided. 

3. The maximum hours fixed in paragraphs (a) and (d) of Section 1 
of this Article shall not aiTOly during peal: periods to consist of not 
more than nine (9) weeks prior to December 31, 1933, and of not more 
than nine (9) weeks in any six (6) months' period thereafter, pro- 
vided, however, that in any six (6) months' period the average weekly 
hours of labor for employees covered in said paragraphs shall in no 
event exceed the maxim-um weekly hours prescribed in said paragraphs. 
During such peal: periods no employee covered in said paragraph (a) 
shall be permitted to work in excess of fifty-three (53) hours in any 
one week, and no employee covered in said paragraph (d) shall be per- 
mitted to work in excess of forty-five (45) hours in any one week. 

The provisions of this Section shall not ap-oly where, by reason of the 
existence of unutilized equipment in such plant and competent personnel 
for employment, no hardship would be in^Osed on an employer by com.- 
pliancc with said paragraphs (a) and (d). 

4. No employee shall be permitted to work more than six (6) days 
in any seven (?) day period. 

5. notwithstanding the exemptions from maximum hours provided by 
Section 2 (b) of this Article, such exemptions shall not, in any case 
apply t6 more than one worker (in addition to those covered by 



paragraphs (a) and (c) of Section 2 of this Article) for every five 
(5) v/orkers or fraction thereof. For the purpose of this Section, the 
word "worker" shiall be deemed to include employers, executives, and 
persons not receivinj monetary, wa^^es, when such persons arc actually 
engaged in drycleaning and/or dyein^ or any of the processes in- 
cidental thereto. 

ARTICLE IV 

WAGES 

1. For the purpose of prescribing proper standards as to minimum 
rates of pay, the United States is divided into two (2) areas: (l) The 
Southern area, which shall include the; states of Alaharaa, Arkansas, 
Florida, Kentucl-rj-; Louisiana, Mississippi, North Carolina, South 
Carolina, and Tennessco, and (2) the ITorthern area, which shall include 
the remainder of the United States, its territories, colonies, and 
possessions. 

2. No plant employee shall be paid at less than the following 
rates per hour: 

IN THE NOEEIERII AREA . 

PER HOUR 
Zone 1 - Cities over 500,000 polulation and their 
.local trade areas ______^h--^ $0.33 

Zone 2 - Cities between 100, OOb and 500,000 population, 
not covered by Zone 1, and their local trade areas- - .30 

Zone 3 - Cities of less than 100,000 population, not 
covered by Zones 1 and 2, and their local trade areas- .27 

■ IN THE SOUTHERN AREA. ,' . ' ; •., 

The entire area -, - -.— , - - -. - -~-^~^— ----- .20 

3; No other employee sliall be paid at less than the following rates 
per week: 

IN THE i'ORTHERN AREA, 

PER WEEK 
.Zone 1 - Cities over 500,000 population and their 
local trade areas .- -, .-- S14.00 

Zone 2 - Cities between 100,000' and. 500, 000 population 
not covered by Zone 1, and their local trade areas 13.50 

Zone 3 - Cities of less t]i,?.n 100,000 population, not 
covered by Zones 1 and 2, and their local trade areas - 13.00 

IN THE SOUTHERN AREA 

Zone 1 - Cities over 500,000 population and their local 
trade areas -----_--__---_--_----- 13.00 



9759 



-115- 

Zone 2 - Cities between 100,000 and 500,000 po-mlation, 
not covered "by Zone 1, and their local trade areas - 12.50 

Zone 3 - Cities of less th;vn IQO.O'^O po-'mlation, not 
covered "by Zones 1 and 2, and tlieir l3cal trade areas- 12.00 

4. Sections 2 and 3 of this Article estaolish minimum rates of 
pay, rei-;ardless of whether an employee is compensated on a time rate, . 
piece-work, or other 'basis. These minimui.i rates of pay shall apply to 
comnon labor or other totally unskilled labor. 

5. l;o employee whose full-time weekly hours are reduced "by 
reason of the provisions of Article III of this Code hy less than 
twenty percent (20^) shall have his or her full-time weekly earnings 
reduced. Ho employee whose full-time weekly hoars are reduced hy 
reason of the provisions of Article III of this Code, in er.cess of 
twenty percent (20,i) shall have his or her said earnings reduced hy 
more than fifty percent (SO^o) of the anoant calculated by multiplying 
the reduction in hours "by the hourly ra.te. 

6. The \7ages and rates of pay of employees receiving more than 
the minimum wages and rates hereinabove prescribed shall be readjusted 
so as to preserve equitable differentials. 

7. Pemale employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 

a. No deduction from wag^^s shall be made or permitted for the 
housing and/or boarding of any employee within a cleaning and dyeing 
establisliment. 

ARTICLE V 

GEI^RA.L LABOR PROVISIO'iTS 

1. Ho person under 17 years of age shall be employed in the 
trade. In any state an employer shall be deemed to have complied with 
this provision if he sha.ll have on file a certificate duly issued by 
the authority emioowered to issue emplojonent certificates, showing that 
the employee is of the required age. 

2. Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and sliall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in , the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

3. i\fo employee and no one see]:ing employment shall be required 
as a condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor or^a.nization of his 
own choosing. 

4. Employers shall company with the maximu.i hours of labor, 
minimum rates of pay, and other conditions of employment, approved or 
prescribed by the President. 

9759 



-1]-.- 

5. .Within each State this Codo shall not supersede any laws of 
such State imposing more stringent requirements, regulating the ages 
of employees, wac^es, hours of v,'or]t, or health, fire, or general work- 
ing conditions tha,n under this Code. 

6. Employers sliall not reclassify employees or duties of 
occupations performed by ermoloyees so as to defeat the purposes of 
the Act. 

7. Each employer shi.all nost in conspicuous i^laces full copies of 
this Code. 

8. Coercion of employees to purchase stocl: of an employer's 
company as a cont^'ition of obtaining payment of pa.st-due wages or for 
any purpose desi^ucd to substitute such purcha.se in whole or in part 
for full payment of V7agcs, 

AST I CLE VI 

M0U0F0LIE5 

Ko provisions of this Code shall be so applied as to permit 
monopolistic practices, or to climineite, oppress, or discriminate 
against small enterprises. 

ASTICLE VII 

MODIFICATICII 

The President may from time to time cancel or modify any order, 
approval, license, rule, or regulation issued under the Act. 

AUTICLE VIII 

EEFECTPv^ SATS 

The effective date of this Code shall be the second Monday after 
the ap-oroval by the President. 



Non-suspended Articles and Sections of the original Code have been 
renumbered to be consecutive. 



9759 



-117- 

EXEI3IT "A" 

SCHEDTJIE "3" 

PAIH THADE PHACTIGES 

F03. THE 
CLEAMI;"C- MiD DYEINa 
TRADE 
III THE RCCKLAl'IL COTjlITY, KE;7 YOEIC 
LOCALITY 

ARTICLE I 

TRADE PRACTICES 

The follov/irit,- descri"bed acts shall constitute unfair methods of 
coinpetition. 

Rule 1. Mi sleading Adverti sin f; — The use (or parti cijjat ion 
therein) of, the put li cat ion, or the broadcasting of any untrue, de- 
ceptive or misleadin;^ stateraent, representation, or illustration, in 
connection '.vith e.nd for the pur-;ose of furthering the sale of clean- 
in^i or dyeing service. 

Rule 2. Defamation or Dis^^ara;-,ement of Cor.ii3etitors — The false 
imputation to competitors of dishonorable conduct, or inability to 
perform contracts, and/or poor or questionable credit standing, and 
false re^presentation concerning the grade or quality of the service 
rendered by competitors. 

Rule 3. Underselling Claims — Advertising which inaccurately 
announces or lays claims to a policy or continuing practice on the 
part of the advertiser of generally or regularly underselling com- 
petitors. 

Rule 4. Mi si ef ding Guarant ecs — G-uarantees which arc not spe- 
cific as to the nature and extent of the guarantee or which for any 
reason arc unenforceable against the guarantor. 

Rule 5. Disclaimers — Attempts by stipulation to evade, limit, 
or nullify v/hat would otherv/ise be the lawful responsibility of a 
member of the Trade for articles left with him for cleaning ?nd dyeing. 

Rule 6. Misrepresentation of Prices — Representation of ary 
prices or credit terms as "special" when they are in fact the regular 
prices and/or credit terms of the person malcing such representation; 
also' the representation that quoted prices apiol;;' to coirplctely 
finished worlr v/hen in fact they ary)ly only to ixirtia'lly j^roccssed v/ork. 

Rule 7. Unfair Merchandising Devices — 

(a) The furnishing of free work to anyone except a 
bona fide charity. 



9759 



-113- 
(l)) The furnishing: of free storage to customers. 

(c) The pa;;'mcnt of a commission or any other 
consideration to anyone not a member of the trade 
or regularly employed hy a member of the trade, 
for the solicitation or procuring of cleaning 

or dyein.-,- work. 

(d) The use of premiuins in v;ays v/hich involve 
commercial bribery in any form. 

(e) The use of premiums in ways vhich involve 
lottery in any form. The term "lottery" shall 
be construed to include, but without limitation, 
any lolan or arrangement vrhereby the premiums 
offered differ substantially in value from 
customer to customer of the same class, 

except as a result of differences in 
quantities purchased. 

(f) The use of premiums in ways which involve mis- 
rerjrcsentation, or fraud, or deception in any 
form, including, but without limitation, the 
use of the word "free", "gift", "gratuity", or 
language of similar inioort in connection with 
the giving of ^oremiums for the purpose or with 
the effect of misleading or deceiving customers. 

(g) The giving of premiums to any customers v/hen such 
premiums arc not offered to all customers of the 
same class in the locality. 

Rule 8. Added Charges — The attempt to secure an additional 
charge for the eradication of spots or stains after the member of the 
trade agreed to dry clean them for a stated price. 

Rule 9. Secret Rebates — The secret payment or allowance to 
any customer, or to any employee of a customer, of rebates, refunds, 
remissions of past indebtedness, commissions or discounts, whether 
in the form of money or dtherv/ise, including the extention to par- 
ticular customers of special services or -orivilcges, false invoicing, 
and rebates under the guise of allowances for lost, misplaced, or 
d-maged articles. 

Rule 10. Limitation of Com-petitors — The stimulation or copying 
of a competitor's style of store front, of signs or of advertising, 
with the ^intention, or having the tendency and capacity, of deceiving 
the customers of such 'competitors. 

Rule 11. Posting of Insurance Informa tion — Failure to display 
in a conspicuous place a printed or written placard stating whether, 
to what extent, and against what hazards fabrics left for cleaning 
and/or dyeing are protected by insurance for the benefit of the 
consiuner. 



9759 



-119- 
Rule 12. False or MisleadinA' Statements Concerning Insm-ance — 
False or misleading statements or representation by any means v/hatso- 
ever as to the amount and/or character of insurance carried for the 
benefit of the consumer on fabrics left for cleaning and/or dyeing. 

Rule 13. Accentin^^ of War!: from Solicitors — Accepting of work 
from a person v;ho solicits cl.eaninj and/or dyeing work and v/ho is 
neither a member of the trade nor regularly employed by a member of 
the trade. The provisions of txiis Section shall not apply, however, 
to any such person w>icre he engages in such solicitation under a 
contract with a 'olant ovoer, terminable on not less than six (6) months' 
notice. 

Rule 14. Violence. Intimidation, or Unlawful Coercion — 

(a) Any use of violence to, person or property, in- 
timidation, or anlaeful coercion by a member of , ;; " 
the trade against a member of the trade. 

(b) Any threat by a member of the trade, to use such 
violence, intlmida.tion, or unlawful coercion. 

(c) Any conspiracy among members of the trade, or 
among raembnrs of the trade a.nd others, to use or 
to tlireaten to use such violence, intimidation, 
or unlawful coercion. 

(d) Any combining or cooperating by a member of the 
trade v;ith anyone who is using or threatening to 
use such violence, intimidation, or coercion. 

Rule. 15. Hours of Oper at ion — ITo retail outlet shall remain open 
or be operated on Sundays, or on national, state, or local holidays, 
or in excess of sixteen (l6) hours on any Saturday or any day except 
Sunday prior to a national, state, or local holiday, or in excess of 
tv.'elve (12) hours on arjy otner day; provided, however, tha,t where a 
day of the week other than Sunday is recognized as the Sabbath Day 
by a retailer and such retailer regularly keeps his establishment 
closed on such day, such establishiTient ma;^ remain. open and be operated 
on Sunday, subject, however, to state and local laws and ordinances. 

This provision shall not anply to valet shops which pcrfoi-m some 
or all of the follov/ing services, usually while the customer waits; 
the shining of shoos, the pressing of suits, the mending of torn places, 
the sewing 'of buttons Sind the 'cleaning of hats; but which do not 
engage in the following activities; the dry-cleaning Or dyeing of racn''s 
suits or women's dresses, or the tailoring to order of clothing, 

ARTICL3 II 

LOCALITY 

The Rockland County locality shall comprise the following portion 
of II ew York:- Rockland County. 

Approved Code r"o. 101 - Agreement ".'0, 2* 
RegistL-y "o. 1714/22/56 

9759 



APPEDVED COnE HO. 372 
AGHEEI.telOT So. 4 



APPENDIX R 



LOCAL CX)DE OP PAIR TR.5.DE PRACTICES ..' 
POR THE . 
SHpE REBUILDIITG- TRADE : . 
m THE 
■■ DISTRICT OP COLUlvEBI A 

As Approved on Pebruary 13, 1935 

. ■ ORDER 

Approving a Local Code of Pair Trade Practices for Members of the Shoe 
Rebuilding Trade within the Listrict of Col-umbia, and accepting offer 
of Members of the Trade to abtde by said Local Code -under Executive 
Order No. 6723, of May 26, 1934. 

A petition, pursuant to the provisions of Executive Order No. 6723 of 
May 26, 1934, having been presented by members of the Shoe Rebuilding Trade in 
that area described as including the District of Colmnbia, for approval of a Local 
Code of Pair Trade Practices and acceptance of an offer of agreement to abide by 
the provisions thereof together with the non-suspended provisions of Approved Code 
No. 372 for this Trade, copies of eacii set of said provisions being attached here- 
to and marked Exhibit 'lA", and the National Industrial Recovery Board having 
found, 

1. That this Local Code of Pair Trade Practices and the agreement by and 
bet^veen members of the Trade in this area comply in all resioects with 
the terms and puri^oses of the p.bove mentioned Executive Order, and, 

2. That eighty- five per- cent (SS;',) of. the members of the Trade in said 
area have signed the aforesaid agreement; 

NOW-, THEREPORE, by virtue of the authority vested in it by Executive Orders 
of the president, including Executive' Order No. 6859, and otherwise, the National 
Industrial Recovery Board hereby approves, the form and content of said Local Code 
of Fair Trade Practices, and accepts on behalf of the President, the. offer of the 
members of the Trade in the above described area and hereby orders that said 
agreement shall become binding as an agreement with the President, ten (lO) days 
after the date hereof and uron which effective date the further pertinent pro- 
visions of said Executive Order No. 6723 shall be in full force and effect. 

National Industrial Recovery Board 

By: W. A. Harriman 
Administrative Officer 
Approval Recommended: 

Harry C. Carr 

Acting Division Administrator 

V/ashington, D. C. , 

Pebraa.ry 13, 1935 ,^ r-- r;r ._:...-— '" 



9759 



-121- 
EXHIEIT "A" 
S CI-IEDUL5 "A"* 

IIOIT- SUSPENDED PROVISIONS 

0? THE 
CODE OF j'AIil COL'^ETITION 
IDE THE 
SHOE EEBUILDIKG TRADE 

AS APPROVED OK MARCH 27, 1934 

3Y 
PRESIDENT ROOSEVELT 



ART 1 01 



PURPOSE 

To effectuate the policies of Title I of the National Industrial Recovery 
Act, the following provisions( Schcdtile "A")are established as a Code of Pair Com- 
f petition for the Shoe Rebuilding Trade, and shall "be the standards of Pair Conme- 
tition for such Trade and shall "be binding upon every nember thereof, 

ARTICLE II 

DEFINITIONS 

1, The term "Shoe Rebuilding Trade", as used herein, means the repairing, 
rebuilding, and remodeling of any and all kinds of footwear and the performance 
of all work incidental thereto. 

2. The term "member of the Trade", as used herein, means any individual, 
partnership, association, comoration, or other entity engaged in the Trade, 
either as an employer or on his or its own behalf. 

3. ; The term "employer", as :ased herein, means anyone by whom any employee i 
k compensated or erq-)lQyed. 

4, The terra "employee", as used herein, means any and every person engaged 
in the Trade in any capacity who receives compensation for his services, irrespec 
tive of the nature or method of payment of such compensation, except a member of 
the Trade, 

(a) The term "shoe rebuilder", as used herein, means any person engaged in 
the r^ J .ihldiug of. footwear, 

(b) The term "executive", as used herein, means any employee solely respon- 
sible for t.ie management of a business or of a recognized subdivision thereof, 

(c) The term "bootblack"' as used herein, means any person solely engaged in 
cleaning and polishing shoes and kinared personal services. 

5, The terras "President", "Act",, and "Board", as used herein, means re- 
spectively the President of the United. States, Title I of the National Industrial 
Recovery Act, and the National IndustriE.1 Recovery Board for Industrial Recovery. 

9759 ■ 



-] -^z- 

6. Population for the purpose of tiiic Code shall "be determined "by reference^ ■- 
to the 1330 Federal Census. 

AS5ICLE III 

HOUBS . 

1. l-Io en^^loyee shall "be permitted to work in excess of forty-eight (48) 
hours in any one week or eight (8) hours in any twenty-four (24) hour period he- 
ginning at midnight, e^ccept on Saturdays and days preceding legal holidays, in 
which event employees may he permitted to work not more than ten (10) hours, 

(a) The mEximum hours fixed, in the foregoing paragraph shall not apioly to 
executives \fho are regularly paid a salo.ry of $35.00 or more per week in cities of 
500,000 population or more and their tra^e areas, or $32.50 or more per week in 
cities between 100,000 and 5^0,000 pop^xLation and their trade areas, or $30,00' or 
more per week in cities of less than 100,000 population and their trade areas, 

2. notwithstanding the exem:^tions from maximum hours provided hy section 1 
(a) of this Article, each exemption shall not in any case auply to more than one 
worker to every ten (10) workers or major fraction thereof, provided that any shop 
may have at least one cuch worker. For the purpose of this section, the word 
"worker" shall he deoi^ed to include employees, employers, owners, managers, and 
persons not receiving mone-cary wages, when such persons are act-ijially engaged in 
any work other than of an exclusively managerial or supervisory character, 

3. Ko employee shall he permitted to work more than six days in any seven 
day period, 

4. llo employer shall knowingly permit any employee to work for any time 
which when totaled with that already performed with another employer or employers, 
exceeds the maximum permitted herein, 

ARTICL3 IV 
MIHIIJUM WAGE 

1. :io shoe rehuilder shall he paid at less than the following rates: 

• Per week 
Zone 1; Cities of 500,000 population or more and their trade areas... $20,00 

Zone 2| Cities of between 100,000 and 500,000 population, not 
covered hy Zone 1. and their trade areas 17,00 

Zone 3: Cities of less than 100,000 population, not covered hy 
Zone 1 and 2, and their trade areas 15.00 

2. '."c other emoloyee, exceiTt bootblacks, shall be paid at less than the 
following rates: 

Per week 

Zone 1: Cities of 500,000 population .>r more and their trade areas... $15,00 

Zone_ 2: Cities of between 100,000 and 500,000 population, not 
covered by Zone 1 and their trade areas 14,00 



S759 



_123" '^^'^ week 

Zone 3: Cities of less than 1CX),000 population, , not covered "by 
Zones 1 and 2, and their trade areas , $13, 50 

3. Ho iDoctlDlack shall "be. paid at less than the rate of $6.00 per week, in 
addition to any tips or other gratuities received. 

4. This Article established minimuTi rates of pay which shall apply regard- 
less of whether an employee is actually coirrpensated on a tine rate, piece work, 
or other "basis, 

5. Ho member of the Trade, "by reason of the adoption of this Code, shall 
reduce an enoloyee' s total vieekly compensation (based on the four-week period, to 
June 16, 1933), whether "based on an hourly, weekly, or other rate, notwithstand- 
ing the fact that the hours of work of such employee may "be reduced here-onder, 

6. To part-time ei.ployee shall "be ^aid at less than the rate of fifty cents 
(50i/) per hour, 

7. Female emrjloyees performing s\i"bstantially the same work as male era^iloyee 
shall receive the same rate of X)e.y as rale employees, 

3. Srployers shall maice payment of all wages and salaries due in la.wful 
currency or "by negotiable check therefor paya"ble on demand, Wages and salaries 
shall be exempt from any payments or charges whatsoever other than those volun- 
tarily -laid "by the employee or required "by law. Employers shall agree with em- 
ployees not to withiiold wages or salaries, and to pay wages at least at the end 
of every tv.'o v^eeks' period, and salaries at least at the end of every month. 

The employer or his a^ent shall accept no re"bates directly or indirectly on 
such wages or give anything of value or extend favors to any person for the 
purpose of influencing rates of wages or the working conditions of his employees. 

ARTICLE V 

GENERAL LAEOR PROVISIOI'S 

1. ITo person ■under 17 years of age shall he employed in the Trade except 
hoothlacks, who may he era-oloyed if 16 years of age or over. In any State an emr- 
ployer shall "be deemed to have complied v/ith this provision if he shall iiave on 
file a certificate or penait signed "by the authority in such state empowered to 
issue em-oloyraent certificates or permits, showing that the employee is of the re- 
qu-ired age, 

2. Er-ployecs shall have the right to organize and "bargain collectively 
through representatives of their own choosing, and shall "be free from the inter- 
ferences, restraint, or coercion of employers of la'bor, or their agents, in the 
designation of such reioresentatives or in self-organization or in other concertec 
activities for the purpose of collective bargaining or other mutual aid or protec 
tion. 

3. ITo errployee and no one seelcing employinent shall "be required as a condi- 
tion of e-Tployraent to join any. company union or to refrain from joining, orgs.niz- 
ing, or assisting a la'oor organization of. his own choosing. 



9759 



-12;- 

4. Employers shall comply with the maximum hours of labor, minimum re.tes of 
pay, and other conditions of employment amroved or prescri"bed lay the President. 

5. "Jithin each State this Cocie pha]l..not supersede any laws of such State 
imposing more stringent requirements regi-'latxng the ages of emnloyees, wages, 
hours of work, or safety, health,, or general v/crking conditions than are imposed 
under this Code. 

6, Employers shall not reclassify Rmployees or duties of occupations per- 
formed "by employees, or engage in any ooher subterfuge, so as to iefeat the pur- 
poses of the Act or of this Code,. 

7. Each employer shall post and keep posted in ten-point type or larger a 
complete copy of this Code ?.nd the r.oiae ar.d address of the nearest official place 
where code violations ,r.ay bb reported, in En,_^lish and such other languages as the 
employees may need to understand it, in conspicuous places readily accessible to 
the employees, 

8, Axi e:Tiploye9 ^h-^.ll be paid ?.t lc3st his full rate of pay for all time re- 
quired to be spent at ^he place of emplcyii;ont or in connection with the discharge , 
of duties of such emr J. o^Tnen't , 

9, Ho employer shall contract his work to any person to be done except, when 
such person ir, subject to the pro--isions of thi-5 Code or the Code adopted for the 
trade or industry coyering, such Vv^rk* . 

10, It is not the intention of this Code to modify^ established practices or 
privileges as to vacation periods or sick leave, 

11. ,;;■.'. e!rrpiiyi-e. E'.-all up dismissed by reason of making a complaint or giving 
evidence vrlth respect to a violation of this Code. 

13. Every employer shall mcke reasonable provision for the safety and health 
of his eirnloyees at the place and during the hours of their emj^loyment, 

ARTICLE VI - ■ ■ . 

MONOPOLIES -' 

No provision of tnis Code shall be so ap-olied as to permit monopolies or 
monopolistic practicer., or to elininate, oppress, or discriminate against enter- 
prises, 

AETICLE VII 

MODIFICATION 

1. This Code and all the provisions thereof are expressly made subject to 
the right of the President, in accordance with the provisions of subsection (b) of 
section 10 of the National Iriustrial Recovery Act, from time to time to cancel or 
modify any order, approval, license, rule, or reg'ulation, issued under Title I of 
said Act and specifically, but. v;ithout limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions imposed by him 
upon his approval thereof. 



9759 



-125- 
2. This Code, except as to provisions required ty the Act, may "be nodified 
on the "basis of experience or changes in circiarastances, such modifications to he 
"based \roon application to the Board and such notice and hearing as it shall spec- 
ify, and to hecome effective on approval of the Board. 

A2TICLE VIII 

EFFECT lYE DATE 

The effective date of this Code shall "be the second Monday after aDproval 
"by the President. 

Approved Code Ho. 372 

Registry Fo. 928-372 , . 

*lTon- suspended Articles and Sections of the original Code have "been 
ren\imhered to "be consecutive. 



9759 



-126- EXHIBIT "B" 

SCIET}ITF..E "B' 



PBOPOSED FAIH TEADE PEACTICES 

. FOE THE , , . 

SHOE rSBUILDIlIG TRAHE 

IN THE WASHIIJOtTON, D. C. LOCALITY 

ARTICLE I 

TRADE PaAGTICES 

The follov,'in£: descrilied acts shall constitute unfair methods of competition. 
No member of the Trade vjithin the locality defined in Article II of this Schedtile 
engaged in any such practice shall "be entitled to display the National Recovery 
Administration insignia used by the Trade. 

1. M isleadi ng Adv ertisi ng - The use of (or participation in) the publica- 
tion or the hroadcastin,-' of any untrue,, deceptive, or misleading statement, rep- 
resentation, or illustration, in connection with and for the purpose of further- 
ing the sale of shoe rebuilding service, 

2. D efamati on o r Dispa rageme nt of Com petitors - The false imiiutation to 
competitors of dishonorable condu-ct, or inability to perform contracts, and/or 
poor or questionable credit s-canding and false representation concerning the 
grade or quality of the service rendered by competitors. 

3. Under se lling C lair.is - Advertising i.vhich inaccuratelj' announces or lays 
claim to a policy or continuing practice on the part of the advertiser of gen- 
erally, or regularly underselling competitors. 

4. Mislea di ng Guarantees - G-oarantees which are not sioecific as to the 
nature and -extent of the guarantee or \7hich for any reason are unenforceable 
against the guarantor. 

5. Misrepresentation of Prices - Representation of any prices and/or 
credit ten.is as "special" when they are in fact the regular -irices and/or credit 
terms of the person making such representation. 

6. Unfair Mercl i andisin;': De vices - (a) the paym.ent of a commission or any 

other consideration to any one not a member of the Trade nor rergularly 
employed by a member of the Trade for the solicitation or procuring 
; of shoe repairing, 

(b) The use of premiuiTis in ways which involve commercial bribery in any 
form. 

(c) The use of premiums in ways which involve lottery in any form. The 
term "lottery" shall be construed to include, but without limitation, 
any plan or arrangement whereby the premiums offered differ substan- 
tially in value from customer to customer of the same class, except 
as a result of differences in quantities purchased, 

(d) The use of premiums in ways which involve misrepresentation, or fraud, 
or deception in any form, including, but without limitation, the use 

9759 



-127- 
of the -^ord "fvee", "~ift", "grrtuity", or Irngurge of similar irrroort 
in connection with the giving of rirerai-uins for the nurvo^e or with, the 
effect of misleading or deceiving custoners. 

(e) The giving of -oreaiixns to rny customers when such r^remiums are not 
offered to rll customers of the same class in the locality. 

7. Added Charges - Trie attemnt to secure an additional charge for work 
nerforned other th--n that actu-lly ruthorized by the customer. 

3. Free Tork - ^he furnishing, free, of any services or commodities to 
any one exce-oting a bona fide charity. 

9. MisrenresentFtion of Quality - '^ithin ten days after standards have 
been defined and described by the United States Bureau of Standards and an- 
TJroved by the Board, every member of the Tyaoe shall dis-olay in a consr)ic- 
uous nlace in his retail nutlet a.-orinted list, which may be read easily, of 
the V'-^rious Dualities of m'-terials as defined and described by the United 
States Bureau. of Standards. Thereafter the sale, or offer for sale, of any 
service involving the use of materials whose Quality has been defined by the 
United States Bureau of Standards, without accurately informing the customer 
of the true auality of the material ' s so defined and described by the United 
States Bureau of Standa-r-ds shall be an unfair trade practice. 

10. Subterfuge - To era-oloy subterfuge directly or indirectly to avoid or 
attempt to avoid the -provisions of this code or the nur'noses and intent of the 
National Industrial Recovery Act, which are to increase em-oloyment, Provide 
better wages, r)romote fair com-oetitive methods, better business conditions and 
promote the public welfare. 

11. Hours of Operation - ITo retail outlet or shoT shall remain open or be 
operated on Sundays or on National, State or local holidays, or in excess of 
sixteen (l6) hours on any Saturda.y or any day excent Sunday prior to a ITa- 
tional, State, or local holiday, or in excess '~f twelve ( 12) hours on any 
other day; provided, however, that where a member of the Trade is operating 
in a department store as a deofirtraent of such store and such department store 
in compliance with the retail code operates a greater number of hours, then 
such member of the Trade may comply with the hours of the department store 
and the other members of the Trade in the same locality may remain open the 
same number of hours; and provided further that \'7hen a day of the week other 
than Sunday is recognized -^s the Sabbath by a member of the Trade, and such 
member of the Trade regularly keens his place of business closed on such days, 
such TDlace of business may remain open and be operated on Sunday, subject, 
however, t" state and local laws and ordinances. This -orovision shall not 
''^•oly to shoeshine service in such outlets. 

ARTICLE II 

LOCALITY 

The Washington locality shall comprise the District of Columbia. 

Approved Code "To. 372 - Agreement N"-. 4. 
Registry No. 928/273-4 



9759 





— 128-* 








^pr.Dix 


L 




or: 


;ICE OEDSR : 


■TO. 


102 




Jul:- 14, 


1934 



APi Jl'ISTrUTOPt'S Ti^RlIToSIAL ClOPERATIuIJ AGRE£liE:iT 



3Deput2^ Administrators for the Territories of Puerto Rico 
and Haraii shall sj.brnit for the approval of the Administrator 
forms of agreement to "be entered into pursurnt to Administra- 
tive Order !Io. X-60, dated July 2, 1934, "by persons engaged 
in trade or industr]?- in such Territories. 

Such pgreeraents shall be sc framed as to "be suitable gen- 
erally to such trades and industries sjid shall includ.e p revi- 
sions for the estp.'Dlishment of minira'oia wages and' maximum hours 
in addition to the provisions required by Section 7(a) and 
10("b) of the IJ.I.n.A. "ilien a form of agreement for a particu- 
lar Territory has "been approved "oir the Administrator, the Dep- 
uty Administr-^tor for such Territory s'nall determine the 
trades and industries to which it shall "be availa'ble and there- 
after ULidertaice to have such agreement signed and com.plied 
^ith "by all nra'ra"b8rs of such designated trades mid industries . 
in such Territory. 

Such Deputy Administrators may, p-'orsuant to Paragraph (5) 
of Administrative Order llo. X-60, dated July 2, 1934, make the 
signing of and compliance with such agreements a condition to 
the contin^iance of the exemption provided for' in Paragra;ph (l) 
of said Order.' Persons signing such agreements shall "be "bound 
by -the provisions thereof-, ' until 1rhe' doite ■ of. cfixpiratioP-, "unless 
^prior to such date they become subject to ah approved code. 

By direction of the Administrator: 



G. A. Lynch, 
Administrative Officer 



9759 



APPENDIX IvI 
•129- 

NATIGiTAL RECOVERY ADMIi; I STRATI Oil 
. . i?A:5HIT!(;T0H D. C. , 



May 26, 1934 



CODE AUTHORITY ?IELD LETTER Hw. 5 
All Code A'LithoritieG 



Right of Code Authorit.y to Co-operate in 
Correcting TJnf'\ir Prison Ccirroetition 



A copy of the agreement between yiventy-nine states known as the 
Prison Labor Corapp.ct has been forv,-a,rded heretofore to all code authori- 
ties. The national Recovery Administration is charged vrith certain 
duties with respect to this Covxpact and the several code authorities 
have certain valuable rii"hts of cooperation under this Comi^act. 

Accomi^anyin^ this you \'/ill find a copy of "Instructions to Comolain- 
ants Against Unfair Prison' Conpetition". A more deta,iled e:ralanation of 
the nature and purposes of this Compact will be found in the accompany- 
ing instructions. 

Brieflj?- it may be stated here that the Compact is intended to pro- 
mote fair competition on the part of the prison industries. The Compact 
was approved by the President in an order dated April 19, 1934. The 
report of the Administrator for Industrial Recovery to the President 
on this Compact gives a valuable resume of its nature and purposes. 

In this. Compact it is sgreed by the subscribing states that prison 
products sold by them will not be sold below the fair current price pre- 
vailing in the market in which the product is customarily sold. It is 
also agreed, that the prison contracting the labor of their prisoners 
will charge the manufacturer, per unit of the. product, for the labor and 
overhead supplied, the am.ouiit necessarily paid by competing private 
industry. See Article V, Sections (a) and (B). 

It is made the duty of tiie Prison Labor Authority, which was 
created xmder Article VII, Section 1, to hear and adjust the complaints 
of affected parties. Ai'ticle VII, Section 2 (g). 

. It is the duty of the Prison Labor Authority, to determine after 
complaint is made, the fair prevailing market price with which prison 
products are to comply q,nd also the fair charges for contra,ct prison 
labor. Under this same article, the prison labor authority is required 
to confer with the code authority of the industry affected before making 
these determinations. Article VII, Section 2 (d). 

Headling by Code Authorities of the Complaints 
Against . Unfair Prison Conpetition 
Arranging Basis of Conpetition 

As you will not in the accompanj^ing "l!;structions to Complainants 
Against Unfair Prison Competition" all complainants are directed to send 
their complaints to their code authority. The code authority after mak- 
ing such study of the complaint and collecting such ini'ornation as they 

9759 



deem necessary about the complaint should forward it to the prison labor 
authority care of i/Ir. J. V. Bennett, To7/er Building, Washington, D. C. 
For the convenience of everyone, the code authority should attempt to 
forward at the same any other complaints' from meirihers of their industry 
concerning unfair prison competition. If the complainant does not intend 
to appea,r personally or by representative before the prison labor author- 
ity, he should submit in writing facts and figures sho^ving the unfair 
competition with which ha is faced. A. copy of the complaint and any 
supporting papers should be forwarded at the same time. The code autho- 
rity should request a hearing of the complaint by the Prison Labor 
Authority. The Code authority may send a representative or representa- 
tives to the hearing. The representative should be authorized to express 
the view of the code authority on the matters which will be determined by 
the Prison Labor Authority. 

If the prison competition is of sufficient importance, a joint 
conference by the code authority and the Prison Labor Authority may be 
arranged upon request. 

Ifcder Article VII, Section 2, the acts and determinations of the 
Prison Labor Authority are subject on appeal or review to disapproval 
or modification by the President, This power has been delegated by 
the President in the aforesaid JExecutive Order of April 19 to the Admin- 
istrator for Industry Recovery. 

No code authority may pass upon or adjudicate any matter pertaining 
to a contract bet-7sen a prison pnd a contractor or coming under the 
jurisdiction of the Prison Labor Authority but must submit any complaints 
or objections arising thereunder to the Prison Labor Authority. 

The questions affecting this Compact will be referred to Division 
Eight in Washington, and correspondence should be addressed to Division 
Administrator, Division' flight. ' • 

Securing Observance of Cor.Tpact . • 

The several Code Authorities have certain valuable rights in secur- 
ing and enforcing the observance of the Prison Labor Compact by the 
prisons of the subscribing states. Tlie prevailing price and fair charge 
which are to be determined by the Prison Labor Authority, as mentioned 
above, miist be observed by all of -the prisons of every subscribing state. 
In case any prison violates the duly de-termined fair prevailing price or 
charge, the il.R.A. insignia may be withdrawn. An N.R.A. insignia for the 
use of the prisons of a subscribing State has been heretofore authorized 
by Administrative Order. This insignia is issued to each prison of a 
subscribing state which signs a certificate -of compliance. The Prison 
Labor Authority has the right to withdraw this insignia. If the insignia 
should be withdrawn from a particular pri'son, retailers wo-uld be forbidden 
by Article IX, Section 2 of the Retail Trade'- Code , from purchasing, selling, 
or exca.nging any raerch-->ndise thereafter manufactured by such prison. 



9759 



-131- 

A complsAnt alleging the violation by a prison of a fair prevailing 
price or fair charge privision shoxild be forwarded to the Prison Labor 
Authority throiigh the Code Authority covering the particular industry. 
The Prison Labor Authority will call a hea.ring on this coFiplaint. The 
Code Authority involved is entitled to representation at the hearing. 
The right of appeal to the national Industrial Adninistration upon a 
determination on a conipl.-int of violation is full and complete under 
Article VII, Section 2. 

By direction of the administrator: 

G. A. LTiTCH (Signed) 
Administrative Officer. 



9759 



APPIilDIX H 



I'J5TRUCTI0:"S 'JO CO! PLAIllAJTgS ■ 
AC-AIUST 



miFAIH PHI SOI' CO;£ETITIO'T 



The quotations below, unlos-s O'therv/ise indicated, are talcen frovn 
the letter of the Adnunistrator to the President of A:oril 18, 1924, trans- 
raitfing for a-^iroval the Com-'act of U'r.ir Coraoetition for the Prison 
Iijdustries of the United States of America. This agreement will he 
referred to as the "Prison Labor Comimct" or simn:)l5r as the "Comiiact . " . 

"A Com-^act of ^aar Com")etiti(.n for the Prison Industries of 
the United States of America has been signed by the governors or 
prison executives of the follov;in^j tv»'enty-ei;Uit States of the 
United States of America: 



Alabama 
Connectic: 
Delaware 
Georgia 
Illinois 
Indiana 
Kentucky- 
Louisiana 
Maine 



Mary 1 ah d 

Massachusetts 

Michigan 

Minnesota 

Missouj-i 

TIebras-:a 

ITev' Hrmpshire 

ITev; York 

ITorth Dakota 

01;lahorrt', 



Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Vermont 

West ■^''irginia 

Wisconsin 

Tfyoming 



It is ex 'GCted thao the Corarmct will ba si^^vicd by other states 
in the future. This hns been the result of a lent,, and continuous 
effort by this Adiainistr?tion to establish and maintain fair com- 
petition between products of nrivate domestic industry and those 
of prison industry." 

The State of lov.-a has also subscribed to the Compact. 

Some of the ,,oneral provisions of the Compact are mentioned in the 
next -oara^^raph of the Administrator's letter which follov/s: 

"The Com-oact covers 'oroducts mined, manufactured, iiroduced 
or distributed oy ;irison labor in the state si._,natory to the Com- 
pact. It limits the hours of labor in nrison industries to not 
more than those prescribed in the ao-olicable code, adopted under 
the laws of the United States ■_,overnin.< each particular industry, 
and provides further that in no case shall an;'- inmate be required 
or ner.aitted to work more than forty hours in any one week. The 
hours of operation of nroductive rruachinery are limited to not more 
than i-:; prescribed in the Code of the cora:>eting -irivate domestic 
industry. It -prohibits the employment of persons under sixteen 
years of a^e in a-ny -orison industry and of ;oersons under eighteen 



9759 



-1?3- 

years oi at^e £<.t ooei-ation-s or occuj^ptions v/hicli are lia2ard.ous in 
ns.ture or dane.:erous to healtli." 

Most of the cnniplai-vbs aj;ainst ;-irisoii conroetition allege that ohe 
■orison is sellinvi, in the o :)en iiar'';et at a irice v.'hich is 1)010^ fair 
current -orices -Trevalli.:,-,. in the niarret in vnich the "iroduct is 
customaril/ solu. Under the Connact it has been agreed "b,-' the States 
that 

"Priso- --iroducts, v/hen sold by the irison or through a con- 
tractOi-, v.-hecher sold direct or tiirou^ih any agency, shall be sold 
not lov;er-than the fair current Thrice -irevailin/." in the market in 
which the -jroauct is customarily sold - tn wholesalers, retailers, 
or consumers s.s the case may be." Article ^^. Section A. 

Under Article VII, Sectio--_ (l), of the Coru-iact, t'lere is created 
a j-'rison Labor Authorit?- rrtiich has the -oov/or and duty ^.o enforce corapli-.. 
ance by subscribinj_, states. The Com;5act also provides the -nrocedure 
to be followed by > r individual comrjlainiuv^ that the CoiT-.act is not 
beins observed. The Prison Labor -authority has the :-;ov.'er nnd duty: 

"To hear and adjust complaints arisin, under this corTiact made 
'oy affected ;oarties: Provided, however, th-.t at the time any such 
com-ilaint is .-.la.de the comjalainant must agree to submit such facts 
e.nd ii,;,ures as i^^ay le necessary to the determinrtion of the issues 
involved." Article VII, Section 3 (g). 

Any coinplainant vho is coverea by a Code should forwai'd to his Code 
Authority his coraplaint. Acco-roar^ying his co/.r-^laint he should forward 
the facts and figures whxCh surtain his cojuplaint and \;hich are necessary 
to the determination of the issues, or in the alternr.tivc he should 
indicate hi3 willi;it^ness to appear before the Prison Labor Authority 
pnd present such faces and figures. The Code Authority should forward:', 
this compilaint,"- together with any other complaints of the same nature, 
to the Prison Labor Authority, c/o J. V. Bennett, Tower Building, Wash- 
ington, D. C. The Code Authority should ti?(?n request that the complain- 
ant be granted a hearing before the Prison La.bor Authority. The 
Code Authority may send such re-;resentative or representatives as it 
wishes to this h':aring. (O'/.e co'X' of each coniolaint and of the sup-oort- 
in,i, "oaoers should be enclosed.) 

It is also provided in the Compact that it shall be a power and duty 

of the Prison Labor Authority. 

"To dptermine, after conferring with the Code Authority of 
"the industry affected and upon request of any person or firm af-r^ 
fected, the prices, charges and amounts provided for in Article 
V. Sections ^ and B hereof; such determination to be subject 
to ar)-ocal to the President of the United States." Article VII, 
part of Secti-'U '^ (d). 

The re-oresGnt:,tive or re^'iresentativcs esnt by the Code Authority to 
the hearing; should be authorized by the Code Authority to exi->ress its 
viev/ of the i.ia.ttcr at the hearing. 



9759 



-134- 



In the Corroact it is raa,de the dutv of the Prison Labor Authority 
to determine the fair current iirice rrhich is to ^^revail in a i-,iven marhet 
when complaint is made. 

The suhscribiii.^ St.-'tes have also agreed that -orison labor v.'ill not 
be contracted to -provide manufacturers for small return which would 
affect the com;-eting outside labor. This :iprt of the agreement is 
cox^ta_ned in Article V, Section (b). If there is any comi:)laint alleging 
the non-observance of this latter -iorovision, the complainant should 
follow the sa.me procedua-e in submittin.;^ his complaint. 

The various Code Authorities have been informed of their rijihts 
to co-operate in this m^atter., They also have- a co")p of these instruc- 
tions and we feel sure thet any v/ell-f ounded com'ilain v.'ill rccci've 
careful consideration from the appro^oriate Code Authority. 



9759 



UTZITDIX 



Administrrtivo Orc.er To V-2, Authorizinc use Of ITRA 
Labels on Prison Goods h£.o.e Under Prison Conroact 



GC.iP^CT or 'FLIR CO.-PETI^i^IC.- 



TQ-R 



^HlSOil IlDUoTHII 
As IcrjyoYed. ''^Ji 



T./z il:it::: 

President, 



S7.k'2BS Cr AI.ICHICA 
A^ril 19, 1S3<L 



OlipjE 

2e -.•■latio-.is of the Co:.rx-:.ct i Fair Cora:)etition for thv- 
Prison Industries of tlie United States of A::ierica 

Tlie Prison Lf.jor Authorit/ actin'^ -uiicer Article VII, Section 2, 
Sa'o-secbion (b) of tlie Conroact of Pair Co.n;3ctition of the Prison Ind- 
ustries cf tlie Unitec. Stat.s of America having duly passed certain reg- 
ulations on Aoril Id-, a:id h3.vin£ certified these re;2:ule.tions for app- 
roval; these ref^ulations having been exardned ^nd ajnended by me e,nd my 
re;3ort thereon containing findin'-:s v/ith res^ject thereto havijig been ni?,ae 
ci:-:d diroctsd to the President. 

iroWjl'ICP^'fOKI,, I, Earh. S. Jolrison, Administrator for Ip.dustria,! 
Puecovery, acting raider Article VII, Section 2, of the Com-iact of Fair 
Coi.-jetition for the Prison Industries of the United States of America, 
a:id xuider [Title I of the llational Industrial Hecpvery Act, a iproved 
J--ine 13, 1S53; a.-d pursuant to authority vestcsd in me Qj Zzecutive 
orders of the President, including '.Ixecutive Order dated April 19, 1934, 
do incorporate 'oj reference t:;e annexed re'oort and find that these regu- 
lations as modified by me furtlier the pvr )ose and intent of the Compact 
of Pair Cor.Toetition for the Prison Industries of the United States of 
A. ^.erica, o.nd are consistent v;ith the nrovitions cf Title I of the Ilat- 
icnal I/.dustricl ..ecover"/ Act; do hereby a' -prove and i^^sue the P.egulationi 
ai.ne::ed to this order. 



:ruc 



jomisoh 



Acbvdnistrator for I:^du£trial 
"ecovery 



A;'proval reco. l .ended: 

xi-ctin , Division Adi'-'-in: 
:lay 3, 193^ 



9759 



-156- 

COi.j'ACT OF ?AIH COLIPLTITlOil jTOR 2113 PHISCil 
I!n)UST±lIES OP TE UITIT."Z) ST'A^LlS OF Ai.Z3SICA - ESailATIOl'S 
QrOMZFd.TJ.Cr TtiL ISSlIAliCE CF T.ll.A. ILZCITTIFICATIOII S":i.30LS 

(l). All ^ ocf.s, \7f,rer:, or i.ierchandise laeda, in uliole or in part, 
in the "Penal or Correctional Institi^tions" of an;/ state which is ad- 
hoaiing to the CoiiDext of fair CoLipetiticn for the Prison Industries 
01 the United St.',.tes of America, or niade in s-ach institutions of any 
political suhdivision of such states, shall tear an N.E.A. Indentifi- 
cation Sj-'itTooI v;henever sii-iilar goods made b'f Industries covered hj 
Codes of Fair CoiT;etition a,re required to bear an II. R. A. label. Each 
sjTifool shall bear a. serial rer^i strati on nunber assir^nad to each .state, 
political suodivision or institution thereof ty the Prison labor 
Authority. Tliis syubol shall bo j.ttachcd to the product v/hen sold ship- 
ped, or distributed by any "Penal Corectional Institution" subject to 
the ;5rovisions of the Conroact of Fair Conioetition for the Prison Indus- 
tries 01 the United States of America. Any and all "Penal and Correct- 
ional Institutions" subject to the Conr:iact of Fair Conpetition for the 
Prison Industries of the United States of Americe. ina,y ejoply to the Prison 
Labor Authority for a perinit to use such U.S.A. Indentif ication Symbol. 
This permt shall be granted only when the application for use thereof 
shall be accoriipanied b'/ a certificate of compliance with the Compact, 
signed l^y the ap'olicant "Penal or Correctional Institutions" or state. 
The form of this certificate of compliance sheJl be determined by the 
Prison Labor Autloority 'I^ie permit to use this H.R.A. Indentif ication 
Symbol shall continue in force only ro lon^j as the "Penal or Correctional 
Institution" to \mich the iicrmit is issued is conrplying v;ith the provisions 
of the Com)act of Fair Coiiiioetition for tho Prison Industries of the 
Untied States of America. 

(.2) The Prison Labor Authority shall set up the appropriate mach- 
iner?/, may enriloy t!ic necessary -oersonnel, and iBtike tho necessary contracts 
for the follov;in;:; ■;iurposes: (a) For the issuance of said IT.fl.A. Indentifi- 
cation Symbol; (b) For the inspection, examination and su ervision of the 
Practices of the "Penal and Correctional Institutions" euthorized to use 
such II.R.A. Indentification Symbols; (c) For the purpose of ascertaining 
the right of said "Penal or Correct; ^---nal Institution" to use or continue 
to use the said II. E. A. Indentif icaticn 33^^001; (d) For protecting -purchasers 
relyinr, on this "iI.H.A. Indentification Sjrmbol; and (e) For the purpose 
of insuring to each state and indivtdioal private enroloyers that the integ- 
rity of the S',T,ibol v/ill be maintained by compliance with the requirements of 
Compact of Pair Com-)etition for the Prison Industries of the United States 
of A.:ierica. 

(3) TjIg charge liiade by the Prison Labor Authority for such U.R.A. 
Indentification Syiabol shall at all times be subject to the supervision 
and orders of the PresiJ-cnt and shall not be.imore than an amount necessary 
to cover its design, printing, fabrication, distrilj-ition and ac'jninist ra- 
tion, supervision of the use thereof. 

('-:) Tl.e i'.R.A. I. ic.ev tif ication S;yT.ibol a'-ithorizcd by these regulations 
shall be the II.H.A. insi,r7iia hcrctof ' re it.Rued to cnployers under the Pres- 
ident's Re-Enioloyment Agreement, except that the word "Member" which appears 
Uiider the letters "N.R.A." sha^. be oinittcd. Below the words »V/e do out 
part" there siip.li 'oc -Tlaccd the following letters and words in legible 
■orint. "Indent. No." 
9759 



: -127- 

APrsi^ Lix p 

1IA^I0:"AL IffiCOVIRY ADLI/ISTIUTI'-i' 
TJpshinoton, D. G. 

Doce.-aber 3, 1934. 

LJcnoiUii'DU] ; 

TO: 3la,c]-j.'ell Smith 

F30H: Linton M.Collins 

SU3JZCT: Inforniati.oii Pertainin^ to the Prison Lrbor Gonnact. 

The Compact of Fair Connetition for the Prison Industries of the 
United Sortes of -arierica was anjr: ved b" the President on A-iril 19, 1934. 
This we,s nrior to 'che creation of Livisioh Si,_;ht. TJhen I assixned the 
duties here, I acce-oted the Co.xiact as an actuality rnd -irocecded. 

The first matter :-!resented for u^'- attention v/as tno a-iplicatio.i 
for a label so that the -orison industries could meet the co.-iditions in 
ret:,ard thereto, contained in the Hetail Code. 

Attached find co;-..y of Administrative Order V-2 vhich was signed 
by General Johnson tiay 5, 1934. ^t the time this Order i/as lorcoared and 
lassed, it './as loohed UTon as an emergency measure and v;as presented 
directly to the Policy Board of the ITIIA by myself and met v/ith the 
c- Tproval fo tha.t Joard ^rior to b^in^' submitted to tlic iidministrative 
Office for final ariroval. 

Shortly after the a-r.roval of Adiuinistrative Order V-'~! b;,^ the 
Adjjinistrator for Indu.strial Recovery, tl-e Cotton Garment Code Authority 
entered a -irotest to the cfoiesaid Order of May ?.o, 1934 gnd -oetitionod 
for C-, stay of t";c Order. As a result of thiB "petition for stay by the 
Cotton Garment Code Authority, a Puablic Hearin,_, vyas held on May 2Sth 
at thp Willard Hotel, rashin^ton, D, C. Tn.- I'otice of Hcarinj; bears the 
V'o. 643 under date of May 15, 1934 and there virs attached thereto a 
co-oy of the Order V-3 of Uay 3rd together v/ith the re^^mle-tions approved 
by said Order and the saiae is mtirhed S^chioit A. 

As a result of the aforesaid hearing, there was effectuated an 
j^dninistrative Order Icnown as V-3 modifying Administrative Order V-?. and 
tno r3;-,ul. tions a yirovcd by that Order but denj'-ing a stay of the said 
Order V-3. A co-)y of this Order as signed by General Johnson, Administre 
tor for Industrial Piccovery, on Juiie 12, 1934 accorananied by the letter 
of transmittal to the General and the reports of the various Advisory 
boards is contained in the bound volume attached hereto. 

Since the a- ^roval of Ai^iinistrr tive Order V-3 June 13, 1934, there 
have oeen no further admin-istrat ive oro.ers passed which concern or arc 
a iplicablc to th.. Coimacv, of Pair Competition for the Prison Industries 

9759 



of- fae,_United States of America. TIi-to is p.Iso attached a co y of the 
Conroact which co.iteins the Execacive Order of the President as ap-irovcd 
07 him on A;oril 19, 19''4. 

Since the a i-iroA'al of the Prison Oonnact, the j^overiiors or '^rison 
executives of the states of Iowa and Plorida as veil "s those of the 
De")artmeTit of Justice and the District of Columbia liave signed the 
Prison Compact. 

On October 11, I subinitted to you a "iro-oosed order a.ccorioaniod 
by the eyilanatory letccr of transmittal and the re"")ort of the various 
advisers as well as tv;0 letters from Mr. J. V. :3ennott, Secretary of 
the Prison Labor Authority, wh-ich would ar. thorize 'the issuance of I'.S.A. 
labels to and use of the same by -orison industries not entitled to their 
use mider the Coi.riact of ]?air Com-oetition for the T^rison Industries of 
the United States of Anierica. This -jro-iosed CrcLer is nov/ in the hands 
of the Le^al Bivision and is a,wa'.tint-: their reconmeudations. 

The fp.cts --;e±ta.ln±v:.,^. to &his nro-oosed Orcier will be ;oresentcd by 
Ivir. Peter Seitz, ^Lssistj.nt Counsel for thi?. Division, Biis nro^osed 
Order was uwice declinea by the Review Officer. Thereafter, I left it 
in your office with "jir. Bernard. This is the Order mentioned in the 
rej-iort and recormnondatioi. of the Co.-Liitte«. 

Ilindly return the copy of Order V-J and the blue binder containin;^' 
V-5 to this office at your earliest convenience p-s these are r.y only 
office co-'^ies. 



_JLsiam4) , . . 

LI'_"TOi' i.;. COLLIN'S 

Actin;.,- Division Adninistrator 

Division VIII 



LMC:h 



9759 



-139- 

APPMDIX Q, 

AI)i:iiJlST:".AriV£ OBDKR ilO. V-3 or Ju'rlE 12, 1935 
MODFYIIIG PRIOR OEDER V-2 OF llAY 3, 1934 

. . ORDER 

co:pagt of fair colpi^titioh 

FOR THE 
PRISOSr ITDUSTRIES OF THE Ul^ITED STATES OF Ai-IERICA 



Modifying Acini nistr at ive Order V-2 and the Re.;^lations approved 
by that Order but denying a stay of said Order. 

■.7HEREAS a hearing was held on Kay 28, 1934, for the consideration 
of an application to stay Administrative Order V-2, dated May 3, 1934, 
or the proposals for modification of said Order; 

liirEi?';REAS all interested parties were at the aforesaid hearing 
allowed to testify fully about this natter and the Deputy Administrator 
havin;^ reported to ne ; 

NOW, 'THEREFUFE, pursuant to authority vested in me under Title I 
of the Act of June' 16, 1933, it is hereby ORDEPilD: 

1. That the 4th paragraph of the reg^ulations heretofore approved 
on Ifciy 3, 1934 in Adninistrative Order V-2 is strucl: oiit and the follow- 
in,?^ paxagraph is substituted therefor: 

"(4) The il. R. A. Identification Sjrmbol authorized by these 
ret5u].ations shall be the M. R. A. insignia heretofore issued 
to employers uiider the President's Re-Emplojnnent Agreement, 
except that the word 'member' which appears under the letters 
IT. R. A. shall be omitted. Eelow the ■■:ords 'We do our part' 
there shall be placed letters and words in legible print 
(Compact' 8.nd below the word compa.ct 'Ident. No. '." 

2. The above described insignia shall appear on all labels hereafter 
issued but in no way affect those heretofore issued prior to this date. 

3. The application for stay filed by the Cotton Garment Code Author- 
ity is hereby denied. 



/S/ Hugh S. Johnson 



Administrator for Industrial 
Recovery 



Order Recommended: 

/S/ Linto , ! H. Collins 
Acting Division Ad.ministrr'toi 

June 12, 1934 



-I40rr 
AF?.gaiX H 



See - ;■•.■;.' '. 

The Prison Labor Proalen -aiider il. R* A. . Adr-inistra.tors and the 
Prison Compact 

A study ty 

V. ■ J,. ' Clariie , Adnir.istrative stiidies, 
Division of I^^evie^i 

(AP?ii;i;Dix) 

for 

H^port of CoF littee on Competition on Prodiicts of C'^tfcr'n 
Garment IncltLstry with Prcdiicts of Prison Labor as directed by 
ercecative order ITo, 113-135 of October 12, 1954. 



Conrdttee 

Josepji 13. Ulnan, Chairnan 
■i'rai'J: -Taunenbaam 
]].. Jett Laucl:, 



9759 



-141- AFFENDIX S 

N.H.A. Decem'ber 1, 1934. 

Le^al Division 

To: Linton M. Collins 

From: Feter SeitK 

Subject: Le^al- Validity of the Prison Labor Compact 

This memorandum is not intended to be a thorough nor ex- 
haustive legal analysis of the validity of the Prison Labor Compact. 
It merely represents a precis of several legal arguments which come to 
mind on the subject. A definitive legal opinion would require a 
thorough study of the following; aspects of the problem; 

1. The nature of state comioacts. 

?. Whether Congress may delegate authority to 
consent to state compacts e>:pressly granted 
in Article I, Section 10 of the Constitution 
to the Executive -Branch of the Government. 

3. Whether the National Industrial Recovery Act 
contains such delegation of authority. 

4. Whether a state compact is an "agreement" 
under Section 4(a) of the National In- 
dustrial Recovery Act. 

• 5. If so, 7/hether a compact is such an agree- 
ment if it fails to contain the mandatory 
provisions of Section 7(a) of the National 
Industrial Recovery Act. 

6. ■ Whetiier a state compact sitrned by governors, 
waPdens of state crisons, commissioners of 
correction, etc., on behalf of the signatory 
states, without supporting state le>-=:islation 
•adoptincj or approving the compact or making 
its provisions the law of the state is duly 
signed by the State and enforcible against it. 

A. State compacts require the consent of Congress 

Article I, Section 10, Clause 3 of the Fed- 
■ eral Constitution reads in part as follows: 

''No State shall, without the Consent of 
• Congress, *** enter into any Agreement 
■• or Compact vith an other State or, with 

' a foreign Fov-er ***." 

5 . I t is doubtful v/ het her Congress may delegate 
its power to give such consent 

9759 



-i-ir- 



Thpre is a i"p11 recognized "body of law 
to th'= e-ffect that Conp-i-ess may delee-ite 
to the £:;ecutive Branch, of the Government 
its -Dowpr to make rules "no reralations 
• even '^hen- the use of such nower involves 
exercise of considerable derree of dis- 
cretion. It is douhtfal, however, whether 
a delegation, can "be made under a clause 
of the Constitution "'hich specifically 
requires the con sent of Conp-ress. Dele- 
f'atiou has usually heen effected under 
broad and a:enerFl clauses, such as the 
Commerce clause. 

C . T he H at i onal Ind u strial Pecovery Act does 

not c ontai n pny D el eg-ation of Conf^ressional 
p OFer to co:o spn.t- to Como^'ctB to the 
i :-ecut;ve arn i the Compac t is not an Agree- 
ment ^-ithin the meaning of the iMational 
Indas' ri--l 'Recovery Act , 

Assaming ('-ithout conceding) that a dele- 
-. . . gat.iO'i .of adthority to aporove State 

■.Compacts m-:iy be made by Congress to the 
... President,, in this instance it m.ijs t be 

made by the ilational Industrial Hecovery 
....,., ...jxt , . '-hich is. cited in the President's 
Lrder cf Aoproyal of the said Comna.ct , 
;. pooroved Aoril 19, 1934, Section 4-a of 
-Title, I .of tne i'l'^.A rirovides th--^t : 

. "The Pr-^sident is -^..utriorized to ***** 
approve vol..int;iry agreements between and 
anonpt',, persons engaged in a trade or 
industry,, labor org'^.ni nation and trade 
or industrial ,9rgani7aticns, associations, 
or grou.os relating to 'any trade or indis- 
try,..***^-**".. 

Let us assume further that the States 
engnged in Prison' Industries are persons 
or grouoe within that menning of Section 
4-a;, but As the Comoact qn Agreement 
•«dthin that Section? Section 7-a reads 
as. follo-'s:- 

'.'£very code of F.-^ir Coraoetition, 
agree.ment aocl license aoproved,. -orescribed, 
or issued under this title shall cont?iin 
tne f ollp-'ing conditions: (1) That 
employee shall have the right to organize 
and bargain collective Ijr**********" etc.. 



9769 



-14S- 

L.bvioasly a cornp^ct rflntin,?; to the 
rerTulation of Prison industrips cajinot 
contain the provisions set forth in 
• ' Section 7-a, reouired in all aerepinents 

whic-i n-'.y he approved under Title I of 
the Act. In ^ny opinion this Section 
mast he read in connection '--ith and as 
a limitation uion Section 4-a. In 
other i"'ord E the agreements, i^ich the 
President ma^- -■oDrove under Section 4-a, 
are those wiiich cont=iin -orovisions set 
out in Section 7-a. The oresent compact 
contains no such orovisions. The Con- 
clusion must folloi'^ that the IW^A 
cannot he relied upon as a basis for the 
authority of the President (delegated 
by Congress) to aoprove the Co-npact. 

D, The P ri son Labor Compact may no t ha\e 
been -properly e xecuted . 

The signatures of the several spates 
affixed to the Compact were subscribed 
by Governors, ..-'rdens of State Prisons 
and State Commissioners of Correction. 
In only one instance (Kentucky) was 
there State Legislation in suDioort of 
the Compact. No definite rules are set 
forth in the Fecieral or Stnte Constitu- 
tions as to the orocedure to be followed 
in subscribing the signature of a State 
to a Compact. Ho^^ever, it is considered 
to be the better rule to reouire Stqte 
legislation adootin^: the a.ct of its 
agent in si^^ning the Comrc^ct and -oro- 
viding th-^t the provisions of the 
ComDact are thp laws of the State. 

A further inuuir.;/' is teirg made into this 
subject and I will report to you as soon ns it is completed. 



Peter Seitz 
Assistant Counsel. 



9759 



-144- 
AFPZimiX g 

PJIPORT 0? DEPUTY AHLI.nSYFJlTOH IIIGSS TO 17. R. A. AD:.;iinST3..T0a, 

dated APRIL G, 19G4, re: AGRZIii3::T Ai.OrG TIRi; Liiii^JPACTURURS 

A-D DISTRIBUTORS 

A^D 

ADi.ii:iIGTR..TOR'S ESTT^S 0? TRAII3LITTAL OR AGR:.^..I:1TT Ai.iOilc' TI?^ 

liAl-n^CTl^LRS AUD DISTRIBUTORS TOR PRRSIDRUT'S APIROVAL 

ALSO 

Hugh 3. JchiLEon, AcUninistrator 

iJRA 

Uashi;-:.-toii, D. C 

iiy dear \.lr . Adiaijiistrf.t.r: 

••^or the past three months, destructive- price cutting has prevailed 
in the retail tire trade, in all parts :f the country. ".7e have received 
h-jndreds of telegraia:; and letters roouosting the Adi'ninistration to take 
some action to end the price \rar:i. Pron data submitted to us, there is 
reason for us to believe thet tires have been sold at retail, thro'ogh 
inde-oendent dealers, presumably to meiet the comoetition of priv^.te brand 
distributors. at less than, the manufacturer's total cost (manufacturing 
cost. plus selling and administrative ' expense) . Vihen this is done, 
the dealer 's. ue.rgin of profit is reduced' to a point where it ?rill not cov- 
er store, . wages, . even though he receives a rebate from his manufacturer. 
The v/hole situation was contrary to the purposes of the NIRA and im- 
questionably constituted an emergency v/i thin the meaning of the Act. 

Accordingly, the Code Authority of the Tire Raniif acturers, to- 
gether, with repi-^sentatives of the large private brand distribators v/ere 
suiiimoned to T/ashingtcn on Llarch 30, 1934, for a conference. Colonel R. 
17. Lea, Messrs. Leon, Henderson, Rilton Ee.tz a,nd H.L. Kress represented 
the Administration. 

As a resxilt rjf these negotiations, an ...greeacnt was reached which 
provided for the imi.iediate cessration .of all tire price vvars throughout 
the country. Insofar as --^o^sible, an attermt was njade to restore the 
status quo. 

The outstanding points in the agreement were as follows: 

1. A forty day truce, effective April 3, 1934. 

2. Rstc.blisliiient of temroorary differentials belov; the 
Goodyear lists of Reoruary 9, 1934, for Sears Roebuck 
and C'nipany, ,l,iontgomery Uard .': Coiapany, Atlas Su^rily 
ConToany and Uestern Auto Suopl-y Cov-pjiny. 

3. Rstablisliment of fixed trade-in allov.'ances to prevent 
their use for fr.rther price cutting. 

4. Eie. discontinuance of all special rebates by rnamif acturers to 
dealers, v/hich had been extended to enable dealers to meet de- 
structive pricu cutting. 

9759 



5. T''ie disccntinunnce of all cixt-:>rice advertising. 

Copy of the agreement is included in tais report. 

Prom data siibuntted to me, I find t"\at de^tractive price cutting 
prejudicial to tiie pifolic interest and contrary to tlie polic:'- of t:ie I^IRA. 
lias prevailed in the industry since early in January, 1S.34. I find that 
an emergency exists w lic • is productive of unamoloyuient -aid wliicli 
oppresses small enterprises. I find that sach a^reeuient will tend to 
effectuate t'.\?. pel icy of the Act. 



Accordingly, I recou¥nend the approv.^J of t] 
under Section <>.(-) of Title I of t:ic= NI2\, for . 
days from April 3, 193-'';, oending approval of a < 
and Battery Trade, nothing contained in this a, 
strued 5,s establishing any precedent as to polii 
of the Retail Tire and Battery Trade Code. 



tta.ched agreement, 
riod of forty (^0) 
ode for the Retail Tire 
reeraent should "be con- 
/ in any consideration 



Respectfully yours. 



A. L. Kress 
Deputy Admini s t rate r 



Approval Recommended: 



K. 



Siiupson 



K. i.l. Simpson 
Divison Administrator 



9759 



April 14, 1934 



Tlie President 
T'-ie Xiite II case 



Sir: 



I aia transMittin,^ for your approval, under Section ^.(a) of Title I 
of tlie National Industrial Recovery Act, a voluntary a^reeraent entered 
into by representatives of ma.nufacturers and distributors of rubber tires 
on Liarch 30, 1934. Tliis agreement i'j designed to effect an iiiHiediate 
cessation o:' tlie destru-ctive price cutting vvnich I.as prevailed in tiie 
industry in recent mont.is. 

For several weeics, destructive price cuttin,^ lias been goinj; on in 
tlie retail tire trade, in various parts of tae coiontry. , ,7e nave receiv- 
ed innumerable letters and telegrans requesting the Administration to 
talre some action. Accordingly, representatives of tlie 2ubber Tire Lianu- 
facturing Industry Code Autiiority, together with representatives of 
several large distributors, were sUiiLaoned to Jashington for a conference 
on March 30, 1934. ?or information submitted to me, it is my belief 
that an emergency witliin tie meaning of the Act, did in fact exist in 
tais country. 

Under these circujnstances, the nttacned agreement has been made 
under Section 4(a) of Title I of the Act, for a period of forty (40) 
days pending the approval of a code for the Retail Rubber Tire and 
Battery Trade. 

I find that: 

a) Destructive price cutting, inimical to the public interest and 
contrary to the policy of the National Indiistrial Recovery Act, exists 
in the Rubber Tire Industry. It has precipitated a serious emergency 
productive of unemployment and- oppressive tov'/ard small enterprises. 

b) This agreement will aid in effectuating tlie policy of Title I 
of the National Industrial Recovery Act with respect tj transactions in 
or affecting interstate or foreigTi commerce. 

c) Tlie said agreement complies in all respects with tlie pertinent 
provisions of said Title of said Act and that the requirements of clause 
(2) of subsection (a) of Section 3 of said Act liave been met. 

It is therefore recoimnended fciat this agreement be approved. 

Respectfullj'', 



Hugii 3. Johnson 
Administrator for Industrial 
Recovery 



-147- 



Destractive price cuttiriti is inimical to tlie public interest and 
contrary to tlie policy of t.ie. l^Jational Indu'^trial Hecovery Act has 
prevailed in tlie Sabber Tire I;ianuf acturing Industry and Hetail blabber 
Tire Trade for many wee.cs, and lias precipitated a serious emergency 
productive of widespread unemployment oppressive toward small enterprises. 

Accordingly, to effectuate tlie purpose of tlie National Industrial 
Hecovery Act, and pending t^ie anticipated early approval of tlie Code of 
Fair Competition for tlie Retail Tire and Battery Trade, tlie undersigned 
agree that : 

(1) A forty day truce be instituted, beginning 12:01 
A. M. , April 3, 1934. The signatories to this 
agreement will reconvene May 1, 1934, to consider 
extension: of tnis agreement, unless a code is -■■^ 
already in effect. ■■■ ;::■■■.■' ••' 

(2) The Ck5odyear consumers' price list as of February 9, 
1934, is to be used as a price base of 100. 

(3) The Goodyear preferred wholesale list of Febr'aary 9, ■ 

1934 to be used as a base for commercial prices and ...... .. :, 

terms. 

(4) Guaranties to remain the same as at present, with 
the exception that the /Testem Auto 5uTply Company 
is allowed to issue "its new catalogue. 

(5) Trade allowances to be as agreed upon in the 
Washington conference . of Febstiary 5 and 6, 1934. 

(6) i/ianufacturers are to discontinue all "cut backs" 

, to dealers on sale^ effected after i.iarch 31, 1934. . 

(7) Tliere shall be no free goods. 

(8) All cut-prices comparative advertising to be dis- 
continued as soon as possible, and not later than 
April 1, in newspapers. 

(9) Sears Hoebuck, Montgomery-Ward and Atlas to liave 

on all lines a 10^ .differential off the base prices. • 1 . 

(10) 'i?8stem Auto Supply Company of Kansas City, Mo. , 
to have , a ISj j .differential on the base for all 
lines,' except the lowest lines, which is to have 
a lofo differential off the base prices. 

(11) Pep Boy of Philadelphia, Penna. , are to be per- 
mitted an 18 ; diff erentia,l off tne base price 
for their single lines. 



9759 



-148-,. ,;.. 

{!?.) Before any ps.rty to tliis ajreement s^all lower 
prices to meet competitionj lie s^iall notify 
Leon "lencieraon, Director of Research and Plan- 
ning Division, N.H.A. and if the co.npetition 
complained of is net adjusted v/ithin 48 hours 
after receipt of proper notice, all parties to 
the agreeiTient shall -:ave tie ri^.it to meet this 
competition in that market. 

Copies of the notice of complaints shall 'oe sent in the sa^ne 
manner to A. L. Viles, xRubber Manufa-cturers Association, 
444 Madison Avenue, New York City. ....... .^ 

(13) Tube prices are to remain as listed by each individual 
concern as of February 24, 1934. 

(14) Nothing; in this agreement shall be 'construed as 
in any way establishing a 'precedent for provi- 
sions of the proposed Retail 'Tire and Battery' Code. 



TIHS I.'IAIvTUFACTUaBR3 

I . EISBROUCH ._ 

LicClaren Rubber ' Company 

A. A. G.UT-.7AITE 

Lee Tire and Rubber Company 

J. T. CLIl'TOJT 

risk Tire Corporation 

R. 3. .fIL3GH 

Goodyear Tire and Ruboer Co. 

L. G. FAIRBAI^K . 

Firestone Tire and Rao'jer Co. 

J. D. TE.7 

3. F. Goodrich Company 

L. D. TGi;iPKIIIS 

IJ. 3. Rabber Company 

3. 3. POOR 

General Tire and Rubber Co. 

■.Vashington , D. C. 
March 30, 1934 



DI 3TRI3UT0R3 ' 
Atlas Supply Company 

l/iont^omery '.7ard and Company 

D. M.. N3L30I'I 

Sears, Roebuck Company 

I. 1, "tII.iF":R2]Y 

7e stern Auto Supply of Kansas City 

;<iAURIC3 D. TCRAUST, Pres . 
Pep Boys 



Tue Mfg. (out) 

F. A. SaiBERLIl'G, Pres. 

3eiberlin;i, Rubber Company 

L'.,J. IALDRCK 

Pennsylvania Rubber Company 

MiARTiK J, 3ARRY, President 
National Tire Dealers' Association 



9759 



-149- 
APPENDIX U 

(?j:: CAl^T'IVE lill^^S - STEEL) 
Agreement T'ndor Sect,io:\ 4(a) of the 
Pationc'4 Industrial Hecovery Act 

The under si _,/ied (horeixin.f ter soiietiuies called the EIn-^loyers) are 
members of ohe Code of Pair Conrneticion of the Iron and Steel I:^dustry 
a-)-oroved by the President of the United Str.tes Au^^ust 19, 193S (here4 
inafter called the Steel Code) or ar-- subsidiary or affiliated com- 
]ianieG of such merabers. 

Such members of the Steel Code or their said subsidiary or affiliated 
com:anie'3, ovm a.nd operate raine". of oituini nous coal for 'the production of 
such coal for the use of the Llj-.loyers of their subsidiary or affiliated 
com-^anies in O'lerations in or related to th.e Iron and Steel Industry. 

The President of the United S-i;-tes on Se'ote^aber 18, l'J33, a.;j;i^roved 
a Code of Fvlr Comietition for the Bituminousu Coal Industry (hereinafter 
called the Coal Code). 

The Em-olo7er<5 desire to coonerate Y/ith the President and the 
rational Recovery AdminiGtrE.tion in order to effectuate the ;:iolicy of 
Title I of the liaGinal Industrial Recovery Act and to that end hereby 
a^ree with the President rnd oetvveen and amon.r each other as follows: 

Each Employer in the o",erstion of any bituminou? coal mine operated 
by it will comply \,'ith the niaxiinuum hours of labor and minimum rates of 
pay which are or shall be orescribed under or pursuant to the Coal Code 
for the district in v;hich such mine is located so lon^. as the Coal Code 
shall rerns,in in effect. 

This agreeiiient is entered into pursuant to Sectivn 4(a) of the 
hcitional Industrial Recovery Act as approved by the President June 16, 
1935, and subject to all the tenas and conditi ns reeuired by Section 
7(a) and Section 10(b) of Scid Act. 

IK WITI-IESS WHEREOF, the Employers have caused this atsreemcnt to be 
signed in their respective cor-jorate names by their res'iective officers 
or rc-iresentatives thereunto dul;- authorized and the President of the 
United States has endorsed his approval hereon as of the 21st day of 
September, 1933. 

Republic Steel Corporation, T. M. G-irdlcr, President 
Inland Steel Co., by L.E. 31ocV, Chairman 
Jones & Laujilin Steel Corp., '>eo. 0. Crawford, President 
V/heelin^ Steel Corp. , 'V. U. Uclloway, President 
Crucible Steel Co. of .uaeric-, P. /•. Uid'na.jel, President 
Interlahe Iron Corp., bj C. D. Caldwell, President 
I.iather Collieries, by Pic :.i.;;d-;; ;i-t:\er C- Co., Operators 
Pittsburt.Ji Steel C-.., K. D. TJilliams, President 



-150- 

The Corrigan IIcKinney Steol Co., by Donald 3. Billies 

The Yount^stown Si.cet &. Tube Co., by H. G. Dalton, Chairman 

Columbia Steel Oom-iany, by 17.- J. -'ilbert, Director 

ffulf States Steel Co., by L. E. C-eohegan, V. P. & Gen. J^^r. 

H. C. Prick Col: e Cbra-oany 

National i.iin^ns CoiTrianj'- 

Hostetter-Connellville Coke Company 

Sharon Coal & Limestone Coiinany 

United States Coal cS: Coke Com-mny : 

United States Fuel Com■!^any, by Thomas Moses, President 

Tennessee Coal, Iron & Pi. E. Company, by '.7. J. Filbert, Directo:c 

Bethlehem liines Cor;-)., by E. G. Grace 

V/eirton Coal CoiiDany, by Z. T. Weir, Chairman 



A^Dproved: 

Vith the understandin__, that under this agreement hours, v/aejes and 
working conditions tliroui^hout these mines will be imde as favorable to 
the employees as those -orevailin^ in the district in which such mines 
are located. 

(Signed) Franlclia D. Roosevelt 



9759 



-151- 

APPStDIi V 



li.^ISDlA!2Z l^ZLJASE iSL^ASE 170. 995 

OCTOBE?. 2, 195? 



i:ati;nal liecover" ALjuiniEtrator Ku-h S. Jotaison today c.iscloEecL 
that "vath tho auth. rit;r :..i the Prer-ident ci" the Unitec. States" he has 
ur:^ec. tlie United hine w'crhers oi America to accept the settlement of 
the Penns/'lvania "captive nines" contrcversy ofiered jy the operators. 

A tele^jrau addressed by General JoJinson to Philip Hurray, vice- 
president of the mine v/orhers' caiion, read as follov/s: 

"On 3at-Lirday afternoon llr . Eugene Grace, Hr. Myron Taylor and 
Governor ilathan ..iller, representin. , ov/ners ^f the captive mines, 
agreed to have lir. Thonas ivioses, Presi^.ent jf the H. C. Jrick Coke 
Company, meet with 3/ou an'.', discuss all inatterc affecting; the v/orkers in 
the captive mines. 

"As a result of your conferences I am advised Mr. Hoses iias handed 
you a letter, addressed to yo^. in your official capacity as Vice-Presi- 
c'jsnt of the United Hine Workers of America, confirmin;^ the acceptance 
of the coal c-:de thiroU;2;h agreement, v/ith the president on the twenty- 
ninth day -.i Geptemher and a^;reein3 to r;a.intain v/orkin;^ crnditions, 
v/a^es and h:urs as jrevr.ilin, ; uiider acreements betv.'een other operators 
cand the Unitea Mine Ti7orr:ers of Ajaerlca. in the several districts where 
mines are located. 

"I ai.i telegraphinfi; you with the authority of the President of the 
United States uri^ihg tliat the United Mine 7/orkers of America and its 
membership accept this settlement' to "become effective forthwith and the 
mines to immediately resui.ie operations. ThJ.r reruest is made in the 
■national interest and I ti-ust that each affected member of your orurani— 
zation v/ill contribute his pa.rt to the necesoitv of an immediate re- 
sumption of work. 

"They are advised that under the provisions -f the bituminous coal 
code the men v/ill have the ri,- ht of apoeal for the protection of their 
interests to the national Bituminous' Coal Labor Board and the Achninistra- 
tor of the national Industrial Recovery Act." 



-15^;- 

Copy of Sec-nc. Tele Tai-.! Sent Saiae Day (Oct.- 2, 1935) by General Johiiscn 
to Phillij Jrarray; a.nc'. ^Iso Ccoy cf letter leierrec to in That Tele^rajii, 
Sent "by Taoip.as Moses, Pres. of H. C. Pric:.: Co":e Co. tr- Phillip Lurray. 

COPY 

TAIC.II FROli VOL. 4-^, 

20 



uiaT: 


:d 


lllW. 


J V/Jl 


^IC]1 


^S JOlHi^AL, i: 






CaP^ 


P'3 


. 3 


and -X . 


RS 


^IV"; 


Llli 


:rs aghe:...:;nt 



Pollo^/iu;;- the ap )roval of the a::;reei.ient b-;^ the President, Gen. 
Hu^'.h S. Johr.son, a^c-ininistra-tor of the industrial recovery administration, 
sent the lollov/in;, tele.taia to International Vice Presicent Phillip 
l.;array, at Pittsbur'ih: 

"On' Saturday afternoon, i:r . 'Jurene Grace, Ii'r . -Ivivron Taylor and 
Gov. ITathan liiller, re presentin;^ owners of ■ the captive mines, agreed 
to have hr. Thomas Hoses, president of the H. C. Prich Cohe Company, 
meet with you and discuss all umtters affectin , the v^orhers in the 
captive minej. As a result of your conferences I am advised Llr. Loses 
has handed you a letter addressed to you in your official capacity as 
vice president of the United Mine VJcrhers of Ainerica, confirming the 
acceptance :f the coal code through agreement with the president nn the ■ 
twenty-ninth day cf Se^Dtei-iber, and agreein' to maintain v.ror'':in-: condi- 
tions, wages a,nd h.airs as "orevailin-, under a;:reements between other 
operators and the United Mine Workers of America in the several districts 
where mines are located. I aia telefp-a^^hinp --.'ou, with the authority cf 
the President of the United States, urcin-i; that the Unitfed Mine Woi-kers 
of America e.nd its membership acceot this settlei..ent to become effective 
forth'.7ith and the mines to imr.iediately resume operations. This reouest 
is r.iade in the national interest and I trust that each affected member 
of your orr;anization will contribute his part to the necessity of an 
immediate resumption of work; they are advised that, under the provisions 
of the bituminou.:: coal code the men v/ill have the ri;:;ht of apoeal for the 
protection of their interests to the national bitux.iinous coal labor 
board and the acM.dnistrator of the National Industrial pecovei-y Act. 

General Jolinson sent a second tele^jram to Vice President Murray 
on the same day, which rea.d as follows: 

"Ccnf iri.iin;^' rccf tele jJ-onc conversation with y;u this mc'rning, you 
are advised tliat it is my understanding, that the letter of Mr. Moses in 
behalf of the captive mines is an acceptance of the provisions of the 
agreement between other operators cOJid the United Mine Workers of Ainerica, 
and that provisions in such agreements for the check-off, for the col- 
lection of mine workers' dues and the ri;'^ht of the hdne v/orkers to select 
their ovm check.Yeiglimen are s\\ch v/orkinj conditions as are so accepted 
by the owners of the captive mines as stated in Mr. Moses' letter." 



9759 



-155- 

Tlie letter from Thor.ia.s Moses, Presic'.ent jf the H. C. Prick Coke 
Coiir^iany, ;;ientionec. by Gener'.l Johnsciif a.ic". sent to Vice President 
liurray, said; 

"In cuniiri.^tion ci our cvnvors-.-cirn I lianc. jc^x herewith co-)ies 
of contract executed ''oj the -.wncrs of Cf;.:itive :;iines rn. the twenty- 
first dc.,y of SepteLuer, 19:^Z, a;,v'r:!ved by tne President nn the twent-r- 
ninth day of Septeiiber, ISS'i;, and of che hullecin posted at oiu- mines 
on the thirtieth da^^ ''f Se-otei.her, 133C. 

"Thnn it 'c - info ri.i you that T/e liave a^ireei;. with the President to 
accept and coi-iplY v/ith the terms of the oit"a:p.in-us coal code effectinii; 
hours, wa^es and v/orkin:' conditions, and to i.iai:-.tain as favorable hours, 
wages and worldn : conditions as those prevailin. under a^.reeinents between 
other operators and the United Hine Workers of ;i_.ierica ir. the several 
districts v.'here the ivdnes ara located resyjectively curin^ the term of 
the coal code as provided in the capti^'e mines' contract as approved 
by the President. 



9759 



COPY 
Wdll^ HOUSZ .U^Toui-c^LClIT 0? OCIQ-piZB. 7, 1930* 



The President and the Acxninistratcr oi" the ilf.tional Recovery 
AtJtiiniGtration (laigh S. Jolaison) in a lonj ccni'erence v/ith the Captive 
Mine ovrners nia.c.e clear certain f-undamentals in re'jard to the operation 
of ca;ptive ndr.es. - ■; , . 

1. The captive irdnes coine under the cal code already signed by 
the ccy.iviercial mine ovmers, except as to -^rovisionrj of said code re- 
lating to the sale cf coal. 

2. The v;orl:ers in every captive mine csrn. choose their own re- 
presentatives for the purposo of collective bar.aining. 

3. Failin;;: in a, ;reenent on any "loint after such collective 
■bar^a-inin^., the President v/ill oass on the qiiesticns involved, and will 
in i;iakin,3 decisions use the "irinci^'ole that captive mines must operate 
under conditions of work substantially the same in the broadest sense 
as those vdiich obtain in the commercial mines, which represent 90 per 
cent of coal production. 

-.:. The President v/ill ask the mine owners and workers to abide 
by such decisions. 

5. The President will jut into effect such overnment assistance 
as 'may be necesss^ry to carry out the decisions in fairness to ovmers 
and v/orkers. 

3. On or before liondav, the President v/ill -jropose this formally 
to 'the captivo mine ov/ners. 

7. The ov/ners have assured tjie President that they v.'ill enter 
into negotiations at once in ^ood faith v/ith re"jresentatives of their 
wo r2:e r s . 

8. In the meantime and with realizEiticn that every effort at 
speedy endin.-j of these matters is bcinj; §ou,ht, the President requests 
tlia't v/ork be ccntinued and resumed and tliat order be maintained. 



(*) Taken from Volume dd, United Mine Workers Journal, IJo . 20, Par^e 4, 



9759 



—155'- 

IUHDIAJIZ ?ZA::J^Z ' ' ':■ ^ZLZASZ. m . 2&Z6 

JMUjARY 19, 13c4 . ' " ' ■ . 

■ ■■ ' ]1^:1C]aIlL"u^:o::. :xA.;tD Di;ci::3:is captivij :.;ii:z caszs ^ ■ 



Senaoor ?;oert F. Wai:;ner annciirxced todav -clecisioriS ' of the 
STational Labor Board in the ca-jtive coal niine cases. 

The Board held tv/o "learin s on these cases, one Ti Jamiary -i- on 
the fUines controlled ty the U. 3. Steel Corpora,tion, 'the '..thef on 
January 8 on the rest -oi the coraomiies. The- Board had supervised an 
elec'ciou at the ■.lines'oi these coRipanies ilovemher 22 and 33. The 
Board's principal decision dealt ?;ith the U. S. Steel Corporation con- 
trolled nines. The second decision is the sarae as the first on the 
^vTound tliat- there is no difference in the circi:uiiGtances of two sets of 
mines. 

^ " ■ 11A.TI01TAL LABOR B0ABI3 . ■ ' ■ 

IVI TIC i,iArfBH OF H. C. BRICK COICi: ) - 

COi..PAiiY, NA^IOhAL Li::iBC- COl.iPAlTY; ) 

AlID Ska:10H LILiBSTOFB COiiiPAwY ) Case. Ho. 127' 

OS COldPLAllTT OP THB UlIITU) LliS ) 

WORKilRS OF Ai-LJBICA- ) 



This oroceedin.o,- is now 'before the Board for the purpose of 
settlin^ certo.in controversies between the parties-- v'hich liave- arisen in 
thei-r atteuTot to ne/^^otiate a collctive bar._,ainin, , agreement pursuant to 
the 'terms of a so-tailed Presidential a;:reei.innt. "j^ereinaf t-er discussed. 

H. C. Frick Coke Comjany, national Mininv,, ConToan-^'- and Sharon 
Limestone Company, all subsidiaries of the United States Steel Corporation, 
own and operate certain coal mines in the Western Pennsylvania bituminous 
field. Durin/j; the sfjiimfer and fall of ■ 1933 the mines of these companies 
and practicelly all other captive mines In the same area v/ere closed by 
strikes. Without elaborating the details of the protracted controversy, 
it is s-'oi'ficient to say that It thj:ea,t'ened so disastrouslv to- affect 
the national recovery program that the. President of the- United. States 
deemed it advisable to use' his .-iiobd offices in affecting a settlement. 

After some weeks of ne;^otiacions,- clurin,- which tine various pro- 
posals and coTJiiterproiDOGrds were submitted by -the ca,tive mine ov/ners 
and the B'nited Mine Workers, an ac;'reemeht was fiiially reached on October 
30, 1933, between the President and the mine ovrners on the one hand and 
the President and the United Mine Workers on -tBje other. ' This' agreement 
v;as reduced to writing in the form of a -.^ress- release. While the same 



9759 



«156- 

was never formally e::ecuted "by either the operators or the United Mine 
Workers, it is conceded in this proceeding that the riress release cor- 
rectly stated the a£'reement ejnong; the ;oarties. This agreement, herein- 
after referred to as the Presidential agreeraent, provided in substance, 
insofar as is presently material, tlic-.t every captive r.ine having an out- 
let for its product would be reoooned; that the emploj'-ees working when 
the mine last operated would he put hack to work; that, vihen orderly 
conditions had been restored, an election would be held under the ex- 
clusive regnolation and direction of the National Labor loard at vrhich 
representatives would be chosen for collective bargaining and that the 
representatives thus chosen and the operator would then negotiate a con- 
tract to a conclusion. 

TOrie Presidential a^j^reement further provided that 

"If no agreement with the majority re:oresentatives is reached in 
ten days the controversy will be iminediately submitted ''oy both parties 
to the Kational Labor Board for decision and both parties will agree to 
abide by the decision." 

Purstiant to this agreement, certain mines of the H. C. iSrick Coke 
Corroany, National hining Company and Sharon Limestone Company were re- 
opened and elections ^vere held on llovember 22 and 23, 1923. The follow- 
ing representatives, designated as below the election ballots, were 
chosen by overwhelming majorities in the two mines of the Sharon Lime- 
stone Company and the two mines of the national Mining Company: 

Jolin L. Lewis, International President, 

United hine ""/orkers of America 
Philip Hurra--, International Vice President, 

United i-.Iine 7or:cers of Ainerica 
Thomas /lennedy, International Secretary-Treasurer, 

United Iline V/orkers of America 
P. T, Fagan, President, District Mo. 5, United 

iiino Yfox'-kers of America 
■William Patton, Vice President, District Ho, 5 

United liine '.'orkers of America 
TTilliaJii Hargest, Socretary-Treanurer, District llo. 5 

United Jline ',,'orkers of America 

Ttie elections in the 14 mines of the II. C. Prick Coke Company were 
very closely contested, Th« United I/Iine \7orkers rolled majorities in four 
mines, other factions in 9 mines and in one mine there was substantially 
a tie vote. The representatives elected in the mines knovm as Colonial 
No. 1, Filbert, Liaxvyell and Gates (wnich are the onl;'' Prick mines invol- 
ved in the instant proceeding) v.'ere as follows: 

John L, Lev/is, International President, 

United Mine ''.'(Drkers of America 
Philip ;,;urray. International Mine Uorkers.of America 

United liine 'i7orkers of America 
Thomas Kennedy, International Secretary-Treasiirer 

United Liine 'Torkers of America 
ITilliara Tynes, President, District Ho, 4 

United Mine 'Jorkers of America 

975S 



-157- 

C. C. Loner, Secretary-Treasurer, Dictrict Ho. 4 

United Lane Workers of Araerica 
Jolm Ijortz, Or;;£:n.izer, District 'f\o . 4 

United nine TJorl:ers of Ai-^erica 

Pollovdn', these elrcticns, ne-2:-'tia.ti;:ns were "jerj-on "betv/eenthe 
managements ci the ?ric:r, lT;,.ti:,nal aiid Sliaron Ilines and the United Mine 
Workers of Aruerica for tiie pvLrpcse of cons'LiEiatin,;; a contract pursuant 
to the provisions of the Presidential agreenent . Ho a'jreernent having 
been reached within the ten-day oeriod therein provided for, the United 
Mine '(Yorkers, on December 27, 1933, advised this Board to that effect, 
v/here-upon the parties were sui-aiuoned to appear before the 3card on 
January 4, 193^.'^, at ?;hich time a hearinj v;as held. 

At the hearing, it developed that the opera-tcrs and tlie United 
Mine 'Jcrkers vvere in subGta.ntial acreement as to the contract y;ith two 
exceptions, viz:-(l) the proper parties thereto and (2) the check-off 
provision. The present controversy revolves about these two points of 
difference . 

1. It is asserted initiall"" by the oper^.tors that the T.oard has 
no jurisdiction to pass upon the ques-&ion o'x. the proper parties to the 
contract. Althou'';h, ''oj the provision of the Presidential aoreement 
quo'^ed above, the parties agreed to subr.iit an "controversy" to this 
Board if no a^jreement was reached v/ithin ten days, it is n-w -irged by 
coionsel for the operators that the "controversy" conteraolated related 
only to './a_,es, hours and conditions of eniployment had no reference to a 
dispute concerning the proper parties to the contract. Our view of this 
niatlfer, as hereinafter indicated, renders it unnecessary to pass upon 
this contention or to exc'jnine the -intricate res-scning v/hich is claimed 
to ' iiupport it. 

The Gth para.raph of the Presidential Agreement provides that, 
after the opening of i\ny mine 

"an election v;ill be held uiider the exclusive 
regulation and direction of the national Labor Board 
and re'u-esentatives will then be chosen for collective 
bargaining . " 

The inescapable implication of this clcuse is tiiat this Board, 
should not only conduct the ballotin,; but should determine who v/ere the 
re]jresentatives to bargain collectively with the operators. ¥e have 
heretofore determined these representatives in each instance to be the 
persons v/ith the titles hereinabove set out. This determination by the 
Bo^rd, under the Presidential agreem.ent is "exclusive" and was made 
prior to the hearing on January 4, 1934. 

It is ii.a-iaterial whether or not the eo-.t]i^rity of this Board to 
malce such detex-mination be promised upon the -^th para-Taph of the 
Presidential agreement (as an e;:ercise of the exclusive right to con- 
duet the election (or upon the final clause of the Presidential agreement 
(as being a "controversy" betx/een the partie?;) . 



9759 



Tlie o'peratcrs pro;;jcse the follj.v'ii\3: . 

"An election havin:,; 'oecn heli. o:! tiie 33rd day of llovemter, 
1S33, at tlie Liaxv/ell Mine of the H. C. Fricl: Coke Cc . , and 
a majority of those votinsthereat havin;:,' chosen Johin L. 
Lewis, International President, United Mine Workers cf . 
America; Phillip Murray, International Vice President, 
United Mine Workers of America; Thomas Kennedy, Interna- 
tional Secretary-Treasiirer, United Mine Workers of America; 
"illiara Hynes, President, District ITo . 4j United Mine Work- 
ers, of Ai'.aerica; C. C. Loner, Vice President, District 
ilo . 4, United Mine Wor'rers of America; end John Eurtz, 
Organizer, District TiO . 4, United Mine Vforkers of America, 
as their reprise:. tatives of the ;"iurpose of collective 
har'^'Ednin;;: 

"MOW, therefore, this a:"-reement entered into this 
day of 1335, "bet\-eon the said II. C. Frick' Coke 



Conpany ant'. Joh^i L. Le'.ris, Philip liurray, Thonms Kennedy, 
Wn. Ilynes, C. C. ""oner, and Join Kurtz, as their represen- 
tatives of the r.mjority votinr; as aforesaid, vdtnesseth, 
it is hereoy a.,':;reed as follov/sj" 

The United Mine V/or]:ers propose, in lieu of the fore.^^oin,;;;,-the 
follov/in;,: 

"A£;reement made end entered into this day of 1934, 

bet\7een H. C. Trick Coke Corapa.ny, coal operators, operating coal prop- 
erties within the territory embraced in District llo . '^- of the United 
Mine Workers of America, party of the first part, and District No, 4, 
United Mine Workers of America, on hehalf of itself aiid each of its 
members, party of the second part." 

It is apparent from the fore,_;cin';; that the United Mine Workers 
insist that the contract be betv/een the operators and United Mine ?/oi-kers 
of America, as such, and that the operator demaiids that the contract be 
between it and the elected representatives. 

The Presidential agreement iroon this "ohase of the matter ^^rovides 
that: 

"Such representatives r,-i£.y or nmy not be members of a. labor or- 
ganization and any official, national, state or local of the United Mine 
Workers of America i-iay be elected, and if elected the operators ar;ree to 
negotiate with him to a conclusi-.n *********. ii 

It is clear the.t the contract conter.r^'lated b'>' tlie Presidential 
agreement is to be made with the elected representatives and that such 
representatives -lay b e officers of the United Mine 'Jorkers of America. 

The operators reco;^;nize these facts but, in their -oroposed con- 
tract, fail to ilve full effect to then. In lieu ol the proposals of 
the operators E,nd the United i.Iine Workers of Ai]ierica, as above quoted, 
the formal clauses of the contract should be as follows: 

9759 



-159- 

"An election having been held on the 23rd day of November, 
1933, at the Maiwell iline of the H. C Frich Coke Co., and a maj- 
ority of those voting thereat having chosen John L. Lewis, Inter- 
national President, United Mine Workers of America; Philip I.iurray, 
International Vice President, United liine Workers of America; 
Thomas Kennedy, International Secretary-Treasiorer, United -Liine 
¥orkers of America; William Hynes, President, District Ho, 4, 
United Mine V/orkers of America; C. C. Boner, Vice President, 
District Ko. 4,. United Mine Workers of. America, as their repre- 
sentatives for the purpose of collective bargaining: 

"KOW, TH3HEF0PJC, this Amendment entered into this day of 

, 1933, between the s.-.id Y/. C. Prick Coke Company sjid John L. 

Le\?is, International President, United iline Workers of America; 
Philip liurray, International Vice President, United I'.ine Workers 
. of America; Thomas Kennedy, International Secretary-Treasurer, 
United Mine Workers of America;. William Hynes, President, District 
No. 4, United liine Workers of America; C. C. Boner, Vice President, 
District No. 4, United Mine Workers of America; and John Kurtz, 
Organizer, District No, 4, United Mine Workers of America, repre- 
senting the employees of the aforesaid coal company, who elected 
them a.s their representatives, and such other employees, as may 
authorize them to represent them in negotiations with their employ- 
ers, Witnesseth, it is hereby agreed as follows:" 

Whether a contract made and executed in this form does or does not, 
as a matter of law, amount to a recognition of the Union in a question 
not before us and which need not here be decided, 

2. The operators conceded the jurisdiction of the Board to deter- 
mine the proper checkoff provision to be enployed in the contract but 
claim that its scope is definitely limited by the following language of 
the Presidential agreement: 

"The checkoff is conceded. A man may assign a deduction from his 
pay to whomever he desires." 

The operators insist that this laJiguage authorizes only a general 
statement in the contract of the right of the worker to assign his v/ages. 
The United Mine Workers insist that the language of the Presidential agree- 
ment is merely descriptive of the checkoff and that the contract, while 
conforming it, should specifically meet the actual conditions which it is 
intended to cover. 

E-ie practical differences growing out of these generalizations 'by 
the parties can best be illustrated by setting out the actual proposals 
in respect of the checkoff insisted upon by each. 

The United Mine Workers propose the following clause: 

"The dues of the United '. .ine Workers of Aierica, not exceeding One 
Dollar ($01.00) per month, shall be clieckod off the wages of members of 
said organization by the Operator at the rate of Pifty Cents (50(^) per 
half month, and sliall be iDerraitted to the Secretary- Treasurer of District 
No, 4, United Mine Workers of America, not 

9759 



-lec- 

later tlian the first and sixteentH .of,' eacli' i.ioritli, for distribution to 
the ."b.rr.nches of the Unitpcl l.iine' Worhers' pf Americ;i;; and no "cthnr 
assessnents shall he so cheched off excejjt upon the authorization of 
the international 'Ilr.ecutive Board of. tlie'Uhited i,I.i'ne Uorker's of- 
America. . ' ' ' ';' '. ' ; ^ 

"Initiation. Fees of the -United h'ine' Workers of America, in stuns 
not to exceed :One Dollar (.jl'.OO) "o'er niah 'in a-nj- one dr^.y period, shall 
he dedi.ictcd hy the Opc^rato'r and remitted to the Secre-bai-y-Treasurer' of 
District lie. 4, ihiited Mine Workers of' America, in the ' SBine :riahner as 
dues deductions. Under no circumstances shall thr: Initiation Pee for 
any one r2c:\-!i exceed Ten Dollars (,^10. 06)'., . ■ ■ ' ' 

''notice of such collection shall "oe .{■iveh 'at the mine or plant <3n 
the 14th and 29th day of 'each Tionth for the current -payroll period.'- 

"Deductions for dues and initiation fees of the United Mine ■■■• ' 
Workers of Anerica shall' lollov; 'y/a.;jes of ' check;.'ei;'_;hmen, accidsat «■'■ 
and death benefits, rent, and minin;;- QXisensp. ' " ' ' ■.: 

"The Operators are herehy aut^iorized to rnal:9 deductions for store 
hills and all other legitimate accounts upon proper assignments hy the 
employees." ... 

.-■ The o-oerators proposed the follov;ino; ;oroyisi.ns: 

"Vol-'ontary orders for payments of any. portion of the waces-of" 
any mine emloyeefor dues or ps^rir.ents to any orrjanization of vrhicli'he 
may. he ;s, .memher, v.-ill- he. reco^^^^iized and such portion v;ill he checked 
off the. v/a£,e.s .due said. mine, employee and remitted to tho person or 
orgf^ization named .in such orders to such e.::tent as the lav/s of the 
State of Pennsylvania permit. 

.-,;,- The,. cl.:ru,se. in the. Presidential a'^reement qrioted above is a mere 
forraij.la outlininr the ::eneral principle' to' he ..applied. YJhile v/e lisve 
not decided, as a Liatter of lav;, whether or not a contract, executed 
in :the nianiver. ,v;hich we, have here prescribed, amounts to a reco;:j:nition 
of .the United Mine Workers of. Aiiierica, as such, noverthless,- it is 
undisputed that the enrployees for whose benefit the proposed contract 
is tQ. he made are all members of the United Mine Worl^ers of America. 
Swch bei.nc the cas.e, ".it .is entirely proper tliat the checkoff provisions 
be sc phrased as to z^^^ effect to this fact. T/'e hold, therdfore,' that 
the checkoff provision proposed by the United Mine Workers of Ailerica 
is the proper one, to be cioploved in the contract . 

The opera,torG insist, hovrever, that tlie proposed lan£pJ.a^,e contains 
the inference that no enrployce other than a member of the United Mine 
Workers of America shall have the ri^^'ht to make a voluntary assignment 
of v/a^-es. Yfhile the United Mine Workers cMsclaim any such iuplication, 
nevertheless, 1% is .our, opinion that, in oruer to forestall any future 
mi sunder standin;;;, tKe language coiirolained .'of by the operators should 
be clarified by adding to the checkoff clause -^.reposed by tho*United 
Mine Workers, the following proviso: 



9759 



"Froviced, hov/ever, that nctliin, in tlie i ore';-oin.'-:, shall "be 
construec'. tc deny to any e;.i)l;yee not a ueiubor oi the United Line 
Wor2:ers of Ainerica the ri;,ht to uialre volimtary asci;-,iiments of his 
v/a^,es for dues or --ayLients tc fi.ny or:'anization of v/hich he may be 
a iaemoer, or for tiny other ■air";osc." 

'The Board -.understands that all differences betv/een the operators 
and the United Mine ITorhers, other than these discussed above, are of 
such a nature that they can be settled satisf actor«»ty without a decision 
by this Board, 

The parties will now resmne their ne;jotiations in the li;-iht of the 
fore.,oin;_, decisions, and if no final a,:rec.nent is reached within fifteen 
days from the receipt by both parties of this decision, either party 
may notify the Board to that effect 3-id the Board v.'ill then consider any 
controversial natters other than these cisposed of herein. 



(sl-ned) HOBZRT ?. WAGICR. 



97139 



APPEIIDIX Z 

J-une -_-, 1955 



co..i.::iis ci^.^^Hi] 
Px^siDiiiT's iiz:.i;Pi.0Y..ziiT ag^e: 



Tlie Prgsic-ent 's Reerjplo;/rnent Arcreensnt, e-.\tereC. into imder 
section 4 (a) of the ITIllA,, v/aa fi"'om the outset sxibject to modifications 
(-^ara^^Taph 14 of the acreouent) upon petition of tlie siriiier, or, UMon 
approval by IDA of lioui- aiid v/a.;i,e provisions of "oroposed codes. 

Para, ,ra)hs 2 and 3 of the unnodified PRA., v;nich v/as coi.imonly 
called "the strai. ht P3A" , were -jnder souie circ"oj.istances susce :)tiL)le to 
divergent interpretations; certain tjnes of enroloviaent do not fall 
clearly under one parajjraih or the other. However, there was not rp- 
":)arent much difficulty in applying these two para:;raphs to an establish- 
ment and i,i;.hiny Lhe required assignv.ient of hours and T/ages. 

'.Then approved hour a,nd wa,,ie provisions of iroposed codes v;ere 
Denuitted as "substitutions" the principal difficulty e^ODerienced at 
this staj^e war. in ascertaini^v. \7lia,t jusiness activities were included 
under the ten. is .f a oro") sed cr-de. Iliirployers naturally preferred the 
flexibility of hour and v,-a.;';,e provisions e-stcaisibly adapted to require- 
ments and customs of a. particiilar industry or trade, and in ipod faith 
placed employees .-n hoLur and v'a.'.e schedules only to find thorn ^mapproved 
b;/ IIEA or not approved for the ;iarticiil&.r eni^^loyer's business. 

linforicaoBhf of the PEA rested solely o,-- xmblic opinion. It 
was the experience of the Coi.iplaints Section (of tjie Blue Eac_:le Division) 
in Aug-ast and Se'^teuber 1933 that consumers v^rere ardent in their desire 
to see that the a-.-^recment was observed; they made inquiry on mrchasing 
jjcods and if supicicus thr.t the establishiuent was not heepin^; faith, 
refused patrona;'',-e . It was a-)parent that the ublic oonsidered violation 
of the agreement a crime OJid that criirinal action should be tal:en 
vigorously a ainst o:;T5lcyers in noncompliance. 

It \!as found difficult to explain to a complainant', whether 
emrployee or cons-'Oiner, that enforcement of the PRA rested on public 
opinion; that -irice cutting, hours of store operation snd purely local 
agreements on ;-)rices (for service as well as corxiodities) did not come 
uiider the puroose or a-at'iority of the agreement. 

Centralized enforcement of the PSA brought a voliome of correspon- 
dence difficolt t, handle, and a consequent costly delay in effecting; 
satisfactory adjustment. V/ith no enf ornoBenti; agency on the scene, the 
small percentage of recalcitrant ei.iployers I'lad a demoralizing influence, 

The plan of Local IIRA Compliance Boo.rd was evolved to determine 
questions of fact aivd tc decentralize as far as practicable the worh of _ 
compliance. These Couipliance Boards .were an outgrowth of KRA. Local 
Comi.dttees, the latter bein'; grcuos desi_,-ned to create consujner interest 



3750 



in ea-xC^ sup-jort of the projraia and to assist euployers and erirployees in 
applyin , tlie jrinciples of the c,:-jreeruent . 

On Septe..:oei' 11, 1935, tv/o i.rnitlis aiter the pro.;,raai was laxuiched, 
general instructions were issued V- ^'iTRL to all J?_A. Local Ccmndttee 
Chairhien-regardin;;; the creation of Local IIUA Conpliance Boards. Old 
conn.iittee chairmen were instructed t: convene iri-.ediately and act as 
chs,irnen of a noniinatin coim-iittoe connosed oi individuals representing 
the interests of labor, trade industry and cons-oiAeys fo.r the purpose 
of naniinj the Lieml-eiB of Conplia-nce Boards. The nominating;; coE.uttee 
included a re-Tresentativc of the Chaxihers rf Co^.u-ierce, Retail ilerchants 
Association, ".ian-ji'acturers Association, Labor Organizations, Federation 
of V/oaen's Clubs and the Local 3ar Association. 

This conr.iittee naiaed sir mcmbors of the ITIA Local CoiiTpliance 
Board and the re'oort to IiaA headquarters listed the Board memberchip as 
coriTprisin;-; a truly representative eniployec in industrial labor, a truly 
representative enrployee in retail or wholesale trade, a truly representa- 
tive industrial enrployer, a truly representative employer in retail or 
wholesale Lrade, a representative oi the ccnsuaers, a lavryer in c^ood 
stanuin : with the State Bar Association, selected for his leaoers'ii^; in 
his profession. These six Board mcubers selected a seventh to be Chair- 
ina.n . 

Service on iIRA Local CoLipliance Boards was without compensation, 
and it o.eveloped cuickly that herein was one of the v/ealniesses of the 
set-up. The vclune of worl: was sufficient in most instances to require 
the full time of the secretary a.nC- an investi ,atar. The Boards necessa- 
rily incurred certain e;cfAvnses v/hich were met by voluntar?y contributions 
from associations, labor organizations, and eiaplcyers. 

In the u.c.in, the soine -lOOO Boards dio, an excellent job. As the 
projraixi ;;rof_,ressed there were n-ij.:er.ais instructions, interpretations and 
explanations to be f ..-llo'v/ed. Tiithout in-ovision for full time emoloyment 
of at least the Board secretary, instructicxis v/ere not always brou';ht 
to the attention of the Boa.rd v/ith a conso'-'uent variation in the vo.lue 
01 their findings and recoi.iaendations. 

In large citios ITSA Local Co^.nliancf^ Boards were authorized to 
im-oanel adcitional boards, but as such ad:.itiona.l boards functioned 
also on a purely voluntary basis complaints could not be eccorde'!. the 
attention necessary to pre^iare cases in a form generally acceptable to 
the national Compliance Borrd in Washington. 

lluinerous recOiimendationb to the yational Corajliance Board v/ere 
made v/ith insiuf icient evidence of the alleged violation. 

State and District Recovery Boari.'.s (35 of the latter) v;ere also 
availc.ble to an e:.PDlover v/ho differec'. v/ith t'lc decision of 'a, local 
Board. 

Locoil, State and District Conrjlio.nce "cards acted in an advisory 
capacity. A com.ion criticism of the set-up in this respect was that 
these Boards had no authorit"^ to act anc_ tliat employers disregarded 
requests to ap ^ear in an endeavor to effect acjii-stments of complaints. 



9759 



-164- 

ITo record is availr.-le as to thi-. total irumber of adjustments of 
hour e.nd v/a^je complaints wliicb. resulted from action talren hy all 
a;3encies set u^ b;- \^A. A conservati'7e esti.aa^te of the cases referred 
to the national Con-Tlia,nce 3oard by Local CoiiTplicaice 3oards is 1,300. 
Of this nuTiher -iS^..- connlaints T.'ere heard oy the National Complia,nce 
Board, 184 Bl~Ae i;a::;les viere removed, . 31 Blue Zagles were restored. 
From Juiie 16,- 1934 to Jay 25, 1335 State llEA Offices handled 1,098 PRA. 
cases involvin^- ..■.7'-i-4 v/orl;ers rxid , .13L',-A?5,o2 in Me--je restitutions. 

As of October 12, 193--: a tabulation of some sixty industries and 
occupations which did not appear to be imder codes of fair coupetition 
disclosed that 2; 572, 738 persons were ;ainfully enployGd in these 
endeavors in 1930, 



9759 



-165- 
APPENDIX M 



NATIONAL RECOVERY ADMINISTRATION 
BuUetin No. 5 



September 12, 1933 



The following regulations are issued as a guide to all local NRA 
Compliance Boards in the handling of complaints of noncompliance, 
petitions for exceptions, and petitions to operate under union 
contracts. 

The members of these boards are volunteering their services in 
order to help the President in securing 100 percent compliance with 
the President's Reemployment Agreement. 

These boards are not councils of inquisition or compulsion. Their 
fimction is primarily to be of service to all employers who have 
signed the President's Agreement by keeping them informed of the 
meaning of the Agreement and the individual employer's obligations 
under it. They should be ready and willing to aid all employers who 
come to them for information. 

They should make themselves known in their community as widely 
as possible so that all may know that the local NRA Compliance 
Board is the local authority on the President's Reemplo3Tnent 
Agreement program. 

They should give out authoritative information through every 
agency open to them. The job of these boards is to secure compliance. 
In almost all cases this can be done by letting the employers know 
what is expected of them. 

If an employer willfully persists in noncompliance with the Agree- 
ment after being fully informed of his obligations he is no longer 
entitled to the Blue Eagle and the Federal Government will take it 
away. 



n: 



5750 



166 



Section I. Complaints on Noncompliance 



Pahagraph 1. Outline of procedure. — In brief, the following are 
the steps to be followed in handling complaints of noncompliance 
with the President's Reemployment Agreement (hereinafter called 
** complaints ") : 

(a) Receipt of complaints. 

(b) Notice to NRA member against whom a complaint has been 

filed (hereinafter called the " Employer ") of this fact. 

(c) Explanation. 

(d) Notice to Employer of opportunity to appear before the Board 

and state hia case. 

(e) Hearing. 

(f ) Decision of Board. 

(g) Reports and recommendations to the Secretary of the District 

Recovery Board at the District Office of the Department 
of Commerce (hereinafter called the "District Office"). 

These steps are taken up in detail below. 

Pae. 2. Receipt of complaints — (a) All complaints must be pre- 
sented to the local NRA Compliance Board (hereinafter called the 
•* Board ") in the Employer's community. All complaints should be 
in writing and signed by the person making the complaint (herein- 
after called the " complainant "). 

(b) The legal member of the Board should be designated as sec- 
retary to the Board and should be charged with the duty of receiv- 
ing and examining all complaints. He should reject all those in 
which the facts, as stated, if true, do not constitute noncompliance 
with the President's Agreement. If he is in doubt as to whether or 
not the facts stated, if true, do constitute noncompliance, he shoidd 
request a ruling from NRA through the Secretary of the District 
Recovery Board at the District Office on the stated facts. 

Pab. 8. Notice to employer of complaint.— (a) The Employer 
should be notified of the complaint. It is very important that this 
notice be made in the proper manner. In many instances, mere 
notice of the fact that a complaint has been filed will be sufficient to 
induce immediate compliance. The whole tone of any notification, 
whether written, telephonic, or personal, should be that of assuming 
that the Employer is complying and that the complaint is due to 
some misunderstanding, which the Employer can clear up by ex- 
plaining the situation to a representative of the Board. The Em- 
ployer should not be given the name of the complainant unless the 
Employer requests it and the complainant agrees. 

975J) 



167 



(b) In no event should the fact that a complaint has been filed 
against an Employer be made public. 

Pae. 4. Education.— (a) Since in the notice to the Employer the 
offer is made to explain the President's Agreement to him, this expla- 
nation should be made at the time of giving the notice, if telephonic 
or personal, or, if the notice was written, by personal interview. 
These interviews should not be before the whole Board. The legal 
moraber or other member or representative of the Board should con- 
tact the Employer, informally, for the purpose of clearing up any 
misunderstanding in the Employer's mind as to the appHcation of 
the President's Agreement to him. 

(b) If the volume of cases before the Board is so great that the 
members of the Board are not able to conduct these personal inter- 
views themselves, they may appoint representatives, who, under th« 
direction of the legal member, may conduct these personal contacts. 
(See sec. IV below on Enlargement of Board.) 

(c) The Board member or representative should make every effort 
to induce compliance by conciliation and explanation. The Employer 
should be furnished with copies of these regulations and other official 
explanatory releases of NRA on the President's Agreement. If it 
appears that the reason for noncompliance is unavoidable hardship, 
the Employer's Remedy of Exceptions under paragraph (14) of 
the President's Agreement should be explained to him. 

(d) If an understanding cannot be reached by this method, th« 
Employer should be given an opportunity to stat« his case befor« 
the entire Board. 

(e) If an Employer claims that he has a stay of certain provisions 
because of the fact that he has had a petition approved by a trade 
association, chamber of commerce, or other organization, the Board 
should check this by contacting the organization. If the organiza- 
tion still has the petition it should be turned over to the Board. The 
Board will then consider it as an original petition under section II. 
In some cases the organization may have given the Employer to 
understand that the petition had been finally approved. There has 
never been any authority from NRA for such final approval. How- 
ever, if it would be a serious injustice to the Employer to reverse this 
unauthorized approval, much weight should be given to this fact. 
If J;he petition has already been forwarded to NRA in Washington 
this fact should be immediately communicated to the Compliance 
Board Section, Blue Eagle Division, NRA, Washington, D.C. Pend- 
ing a report from Washington the petitioner may continue to oper- 
ate under the provisional stay. 

Par. 6.— Notice of opportunity to appear before the Board.— 
Notice of opportunity to appear before the Board and state his case 
shall be mailed to the Employer in a franked envelope. In no event 



075a 



168 

Bhall this notice be made public unless the Employer chooses to do so 
himself. A copy of these regulations and other material mentioned 
in paragraph 4 (c) should be attached to this notice, if the employer 
has not already been furnished such material. 

Pajs. 6. Hearing. — (a) The Employer may not be forced to appear 
before the Board. The Board should keep in mind at all times that 
he is there voluntarily and should govern its attitude toward him 
accordingly. The proceeding must not take on the character of 
litigation or of inquisition. 

(b) Although the Employer may be represented by counsel, if he 
so desires, there is no necessity for this. The Employer may not be 
forced to answer questions. In fact, it should not be found necessary 
to ask any questions except as an aid to the Employer in making his 
voluntary statement No questions should be asked except those 
strictly necessary to determine whether or not the Employer is com- 
plying. This hearing should not be taken advantage of as an oppor- 
tunity to pry into a man's business. The Board has no power to 
compel the attendance or examination of witnesses, or to compel a 
submission of books or other papers to the Board. If the Employer 
takes the position of " standing on his constitutional rights " or 
" refusing to answer questions because they might tend to incriminate 
him," it should be explained to him by the legal member that the 
President's Reemployment Agreement is not a statute to be enforced 
by law but a voluntary individual covenant. 

It should be assumed that if the Employer is acting within the 
spirit of the Agreement, he will be ready and willing to come forward 
with a frank statement of his position in order to clear up any mis- 
understanding. However, it should be explained further, that a 
refusal to answer a question will be considered contrary to the spirit 
of the Agreement if the answer to the question would determine 
whether or not the Employer was complying. Such a refusal should 
be noted by the Board in making its report to NRA. 

Pah- 7. Decision by the Board of action to be taken. — (a) All the 
decisions of the Board should be arrived at by majority vote. All 
members of the Board should be given an opportunity to approve or 
disapprove all decisions (whether on complaints, exceptions, or union 
contracts). All reports should bear the signature of all members, 
who should indicate thereon their approval or disapproval. 

(b) The facts, as found, may vary from the facts as stated in the 
original complaint. If this is the case and there has been no decision 
by NRA on the same facts, a ruling should be obtained through the 
Secretary of the District Recovery Board at the District Office. On 
this ruling the Board should base its decision. 

(c) If the Board decides that the Employer has been complying 
with the Agreement, the case should be dropped, and the Employer 



169 

should be furnished with a Letter of Compliance, which he may dis- 
play near his NBA insignia. 

(d) (1) If the Board decides that the Employer has not been com- 
plying with the President's Agreement, the Employer should be noti- 
fied of the facts which the Board has decided constitute noncom- 
pliance. He should then be given an opportunity to state that he 
will rectify the conditions which constituted noncompliance in his 
case immediately, and that he will report to the Board when he has 
complied. If after such a report the Board is satisfied that the Em- 
ployer is complying, he should be given a Letter of Compliance. 

(2) If the Employer refuses to comply after being given an 
opportimity to rectify the conditions which constituted noncompli- 
ance in his case he should be told that the Board is forced to report 
the facts of his case to NRA and to recommend that the proper Fed- 
eral authority be directed to remove his Blue Eagle. 

(8) If after an Employer has received a Letter of Compliance, 
pursuant to paragraph 7 (d) (1), a second complaint is filed on the 
same grounds of noncompliance as the first; and the Board, after a 
hearing finds that the Employer has been willfully not complying, 
the Board should send its recommendation to remove the Blue Eagle 
to NRA without giving the Employer another chance to comply and 
report. 

(e) The Employer should be given the opportunity to submit a 
written statement of his position to the Board, if he so desires. This 
statement must accompany the Board's report to NRA. 

(f ) If a bona fide complaint has been filed and the Employer noti- 
fied of this fact, but the Employer refuses to see the Board member 
or representative, or to make a statement to the Board, the Board 
should report these facts to NRA with the recommendation of the 
Board. 

Pah. 8. Reports, recommendations, and records.— (a) All reports 
for information and all reports and recommendations with regard to 
complaints, should be mailed to the Secretary of the District 
Recovery Board at the District Office. 

(b) The report should include : 

(1) The original complaint. 

(2) A signed certificate by the legal member, or other apppro- 
priate authorized representative that: 

a. Notice of this complaint was given the employer. 

b. The Employer had his obligations explained to him and 
was supplied with these regulations and other explanatory 
material mentioned in paragraph 4 (c). 

C-. The Employer was given a notice of opportunity to be 
heard. 
(8) A Summary of the Employer's statement to the Board, 

9759 



170 



if he made one. This should be ei gned by the legal member of 
the Board, and by the Employer, if he is willing. If the em- 
ployer is net willing to sign the Enimmary, that fact should be 
noted. If tJhe Employer refused to make any statement to the 
Board, this fact should also be noted. (See par. 7 (F).) 

(4) Any additional facts which the Board considers to be the 

point. 

(o) (1) The Board should include a reeommiendation of the action 

to be taken in each case in which a majority has decided that there 

has been noncompliance. It should bt> signed by all members of the 

Board voting in the majority. 

(2) In addition to the majority recommendation, the dissent- 
ing minority should submit a signed recommendation, togeth'ir 
with a statement of the reasons lor their dissent, 
(d) (1) In addition to the reports submitted in each individual 
c»se of noncompliance, Pi-ogress Reports %vill be requested from time 
to time by the Secretary of the District Recovery Board. For this 
reason the Board should keep a record of all complaints, and the 
disposition of each. 

(2) In all ca.ses where a hearing has been had, and a decision 
of compliance made, a record should be kept of the Employer's 
statement, and the reasons wh}/ a finding of compliance was 
made. 

(8) In aU cases where a finding of noncompliance %vas made, 

but the Employer agreed to comply immediately, a record should 

be kept, so that if the Employer does not comply, or fails to 

comply in the future, his previous record will bo available. 

Par. 9. Files. — The files of the Board on complaints should not be 

open to the public. 

Section IL Petliions for Exception 

PAKAoit<vpH 1. (a) All petitions for exception from the provisions 
of the President's Reemployment Agreement under paragraph (14) 
thereof (hereinafter called '' Petitions ") should be submitted in 
duplicat*» direct to the Board. 

(b) From the date of these regulations, no petition shall be pre- 
sented to or accepted by trade associations, chambers of conmaerce, 
or any other organizations. (See sec. I, par. 4 (d).) 

Par. 2. llie question presented by a petition is whether or not 
some particular provision of t.lie President's Agreement, because of 
peculiar circumstances, would create great and unavoidable hardship 
in the caiie of the individual petitioner. Tlie burden is on the peti- 
tioner to present sudicient facts in his written petition to decide thia 



f?~5;) 



171 



<juostion. The petition should be signed and sworn to before & 
Notary. 

Par. 8. No exception from paragraphs (1), (8), (10), (11), or 
(18) of (he President's Agreement may be approved and no exception 
from or statement of an interpretation or understanding of section 
7 (a) or section 10 (b) of the National Industrial Eecovery Act may 
be approved. 

Pah. 4. (a) If the Board finds by tmammous vote that the petition 
ifl Justified by the facts, it should be approved and the petitioner 
Informed of this fact. He may then operate under his petition with- 
out displaying any " provisional " bar upon his Blue Eagle. 

(b) If the Board finds by wianimoxM vote that the petition is not 
justified by the facts, it should be disapproved and the petitioner 
Informed of this fact. 

(c) In either of the above cases, one copy of the petition, with the 
Board's action and the reasons therefor, should be forwarded to the 
Secretary of the District Eecovery Board at the District Office. The 
other copy should be kept in the files of the Board. NEA may 
reverse the action of the Board in these cases if it finds that such 
action is unjustified. In order to prevent such reversals, the Board 
should assure itself of NEA policies by requests for information 
from the Secretary of the District Eecovery Board at the District 
Office in all doubtful cases. 

(d) If the Board finds by a majority vote that the petition is or 
is not justified by the facts, the petition, with majority and minority 
reasons for approving or rejecting it appended thereto, should be 
forwarded to the Secretary of the District Eecovery Board at the 
District Office, a copy being kept in the files of the Board. An 
approval in such caae will operate as provisional permission to 
proceed in accordance with the petition as approved, pending final 
action by NEA. tJntil such time as NEA does act, the petitioner 
should be informed that he may not display the Blue Eagle except 
with a white bar across its breast bearing the word " provisional." 

Pab. 6. If a substitution has already been granted for the em- 
ployer's trade or industry, the Board should require a much clearer 
showing of individual hardship before granting an individual 
exception with respect to the substituted provisions. 

Pab. 6. In any case in which the petitioner asks for more than 
one exception, each exception should be considered separately and 
a separate decision made on each, so that a petition may be approved 
in part and denied in part if the facta so warrant. 

Pah. 7. In no case should a group exception be allowed. Para- 
graph (14) of the President's Agreement applies only to cases of 
individual hardship. 



S:'50 



172 

Pab. 8. -In every case a copy of the petition with a notation of 
the decision of the Board and a copy of the recommendation of 
the Boar'5^ if any, should be kept in the files of the Board. 

Pab. 9. The files of the Board on exceptions should not be open 
to the public 

Section m. PetltioM for PermlMion to Operate Under a Union Contract 

IFor hours longer than the niaa>im»m under the Preslienr, Reemployment 
Agreement^ 

Paragraph 1. Every petition to work employees under a labor 
contract for longer hours than are permitted under the President a 
Reemployment Agreement should be signed in duplicate at the foot 
of the petition by the petitioner, and sworn to before a Notary. It 
should be accompanied by two certified copies of the contract. 

Par 2 If the labor contract calls for the payment of wages (at 
a rate above the minimum under the President's Reemployment 
Agreement) by the day, week, or month, there should be no grounds 
for a p.'tition. By paragraph (7) of the President's Reemployment 
Agres7Jient, the employer has promised to reduce the hours of work- 
ers paid by the day, week, or month, to the maximum under the 
Agi-eement without reducing their pay by the day, week, or month. 
He is, therefore, obliged to make an offer to this effect to his em- 
ployees under the contract, and undoubtedly the offer will be accepted. 
Such petitions should be refused unless the employer can show some 
unusual reason why his employees are unwilling to work shorter 
hours at the same wage. 

Par. 8. (a) The proper case for a labor contract petition is one 
in which the contract calls for payment of the employees by ths hxrwr. 
An employer with such a contract should propose to his workers a 
reduction of their hours to the maximum, coupled with an upward 
equitable readjustinent of their hourly rate, in accordance with para- 
graph (7) of the President's Reemployment Agreement, as explained 
in Interpretations 1 and 20. If the employer and his employees 
cannot agree on the equitable readjustment, so that an agreement 
cannot be reached for a reduction of hours, a petition may be filed. 

(b) If no attempt has been made at arriving at an equitable re- 
adjustment by agreement the petition should be denied. 

Par 4. (a) Provided, that it is a proper case for a petition, as 
described above, the Board should then satisfy itself that the contract 
is a bona fide contract. If it was made on or after June 16, but not 
before the date when the employer signed the President's Reem- 
ployment Agreement, the Board should make certain that the con- 
ta-act was not made to evade the President's Reemployment Agree- 
ment. 

fJT59 



173 

(b) If the contract was made after the employer signed the 
President's Reemployment Agreement, or for the purpose of evasion^ 
the petition should be denied. 

(c) The petition should also be denied if the contract is subject 
to change or termination at the will of the employer. 

Pah. 5. If the petition indicates that mediation by the Board might 
lead to agreement between the employer and his employees, the 
Board should attempt mediation. This should be done by contacting 
the employees, or their representatives, and offering to mediate. If 
the mediation is successful, the Board may give permission to the 
employer to operate under conditions agreed upon by the employer 
with his employees. 

Pab. 6. If the mediation faUs, or if the Board finds that mediation 
is useless, the Board may give permission to the employer to operate 
under the existing contract. 

Pah. 7. In any case where the Board believes that further media- 
tion should be attempted, it should refer the petition, with a report 
on the situation, direct to the National Labor Board, Washington, 
D.C. A report of this action should be sent to the Secretary of the 
District Recovery Board at the District Office. 

Par. 8. If a petition is denied or approved, one copy of the peti- 
tion and contract with a report of the Board's action and reason 
therefor should be forwarded to the Secretary of the District Re- 
covery Board at the District Office. The other copy of the petition 
and contract should be kept in the files of the Board. 

Pah. 9. (a) Where the petition has been denied because of the 
failure of the employer to attempt an equitable readjustment (par. 
8 (b) above), the employer will be entitled to the Blue Eagle if he 
shortens the hours to the maximum, and keeps the weekly pay en- 
velop intact. In this case the employee gets the same weekly wage 
he received under the union contract (provided that wage is over the 
minimum provided for in the President's Agreement). If the em- 
ployer later attempts to make adjustment, he will be entitled to 
petition again. 

(b) If the petition is denied because the employer signed the union 
contract after signing the Agreement, or to evade the Agreement 
(par. 4 (b) above), he may earn the Blue Eagle only by keeping the 
weekly pay envelop intact, and conforming to the maximum hours 
provisions of the President's Agreement. He may not petition 
again. 

(c) If the petition is denied because the contract is subject to 
change or termination at the will of the employer (par. 4 (c) above), 
the employer will be entitled to the Blue Eagle only if he complies. 
with all the provisions of the President's Agreement. 



9759 



174 
Section IV. Enlargement of Board 

Pahagraph 1. If the volume of business which comes before the 
Board increases to the point where it is impossible for it to handle 
all cases with necessary dispatch, it may be necessary for the Board 
to expand. Much of the volume of work on complaints can be 
handled by appointing representatives of the Board to contact the 
Employer before the hearing in an effort to induce voluntary com- 
pliance by explanation and conciliation. These representatives 
should be appointed by a majority of the Board. They should be 
selected for their tact and knowledge of the President's Agreement. 
Persons with some legal training should be considered for such ap- 
pointments. In no case may these representatives be used as inves- 
tigating agents. Their function should be to help the Employer, to 
understand his obligations, not to cross-question nor intimidate him. 

Pah. 2. If the number of cases which have to be heard by the 
Board, sitting as a single body, becomes too great, the Board may 
appoint seven more members representing the same interests and 
filling the same requirements as members of the original Board. 
In great cities it may be necessary to appoint several of these 
boards. They should operate as departments of the original 
Board and should be responsible to it so that there is uniformity of 
treatment. 

Pak. 8. In any case where the Board is expanded by the appoint- 
ment of additional membei-s (as distinguished from representatives) 
such appointments should be reported to NRA in Washington for 
confirmation or modification. A duplicate of this report should be 
-mailed to the Secretary of the District Recovery Board at the 
District Office. 

Section V. Codes 

Pahaghaph 1. The local NRA Compliance Boards are set up to ob- 
tain compliance with the President's Agreement, not with permanent 
codes. For the present all problems of Code Administration as 
distinguished from the Administration of the President's Agree- 
ment should be forwarded directly to NRA in Washington. 

Section VI. Substitutions 

Paraghajph 1. In many cases NRA has consented to the substitu- 
tion of certain provisions of a cxjde submitted to NRA for certain 
provisionfl of the President's Agreement. (See par. (18) P.R.A.) 
In almost all cases they are substituted for paragraphs (8), (4) and 
(6) only of the President's Agreement. 

Pah. 2. (a) Complaints of noncompliance with these substituted 
provisions should be treated as complaints of noncompliance with 



9759 



175 

the President's Agreement, not as code violations, since these codes 
have not been approved by the President. 

(b) The Board will be furnished with copies of these substitutions 
so that they may determine whether an Employer against whom & 
complaint has been filed is complying with them. 

(o) If the Employer is found to be complying with the substituted 
provisions he should be furnished with a Letter of Compliance. 

Pas. 8. In no case may a local NBA Compliance Board entertain 
a petition for NEA consent to the substitution of the provisions of 
any code for any provisions of the President's Agreement. All such 
petitions should be presented direct to the P.RA. Policy Boards 
NBA, Washington, D.C., by representatives of a substantial majority 
of the trade or industry petitioning. No such petitions may bo pre- 
sented to the Policy Board after September 80, 1988. 

Seetioii Vn— ■'Trade Atsodatlona 

The Board may request the advices of the employer's trade associa- 
tion in any case where such advices might prove helpful in arriving 
at decisions on complaints, exception, and union contracts. 

Hugh S. Johnson, 

Administrator. 
Approved by : 
Daniedl. C. SoFBot, OTudrmam^ 

NoEtiorud Indmtrial Recovery Board, 

9759 



-176- 

APPliroiX 5. 3. 
EIIECUTrrs ORDZE 



RULES .41111 ?.5]G-ULATI01IS imDER SECTIOII 10(a) A'TD BEIZIGATION OF AUTHORITY 
UlIDER SECTION 2(B) 0? THE IIATIOFAL INDUSTRIAL RECOVERY ACT 

By virtue of the authority vested in me ty section 10(a) of the 
Np.tionpl Industrial Recovery Act a-OToroved June 16, 1933 (Public IJo. 67, 
73d Congress), I hereby prescrioe the follo^ving rules and regulptions 
necessary '"or carrying out the iDurposes of title I of said act: 

A. Vo one shall falsely re-oresent himself to "be discharging the 
ohligptions or complying '"ith the lorovisions of the P-.-esident ' s Reein-oloy- 
ment Agreement or of any code of fair competition approved "by the 
President under the National Industrial Recovery Act or of any rule or 
regulation iDrescribed to carry out the Tour'ooses of said act. 

B. Ho one shall dis-olay or use any emblem or insignia or any re- 
TDroduction of any emblem or insignia of the llntional Recovery Administra- 
tion contrary to any rules or regulations prescribed hereunder by the 
Administrator for Industrial Recovery, 

By virtue of the authority vested in me by section 2(b) of the 
aforesaid act, and in su-'o'clenent to Executive order's of June 16, 1933 
and Jiay 15, 1933, numbered 6173 and 6205-A, respectively, I hereby 
authorize the Administrator for Industrial Recovery to prescribe such 
rules and regulptions as ne -v\y deem necessary to suiD-oleraent , amplify, 
or carry out the pur-ooses and intent of the rules and regulations pre- 
scribed in paragrarshs A and 3 of this order, and to take such other steps 
as he may deem advisable to effectuate such rules and retVul'=tions or any 
rules and regula.tions so prescribed by the Administrator, and to aioTooint 
personnel and delegate thereto such po^^'ers as may be deemed necessary to 
acconplish the TDurooses of this order. 

C. Ai:iy nerson -'ho violates tmy of the foregoing rules and regula- 
tions or any rule or refulation prescribed hereionder by the said 
Administrator, may De punished, ns provided in section 10(a) of the 
National Industrial Recovery Act, by a fine not to exceed five hxmdred 
dollars ($500) or imprisonrae:it not to exceed 6 months, or both. 



?RA;'n:Li"iM d, roosevelt. 



The \fhite House, 

October 14, 1933. 



("ilo. 6337) 



9759 



-177" 

HP '-^m n c. c. 

OFFICE O'^DER NO. 103 
July 14, 1934 

AG-EErEK'Ts ro:-: i^irpoTA?:: issij'J"C^ o? l^iels 

III THE TEEHITOr.IES OF PUERTO r.ICO AITD :-iA>.iAII 

Any person engar^ed in trade or industry in the Territories of 
Puerto Rico or Ka'^'fiii desiring to use latels pursuant to the provisions 
of Ad-ninistrative Order Ho. X-60, dated July 2, 1934, may obtain the 
right to USD such Iphels hy snterin^; into ?n agree.raent -^ith the 
Administrator as provided in E-:ecutive Order Wo, 6750-A, dated J-'one 27, 
1934, and Office Order l^'o, ].02, dated July 14, 1934. Application for 
the use of such latels rnd to enter into such agreement shall be filed 
by such person r/ith the Deputy Administrator for the Territory in which 
his enterprise is located. 

Upon receipt of such an application, such Deputy Administrator 
shall fix a time and place for a public hearing thereon and exercise 
due diligence to give notice of the time, place and puroose of such 
hearing to all persons Vaose interests maj'^ oe affected by the granting 
of such application. 

Prior to the close of such hearing, such Deputy Administrator shall 
permit all persons similarly situated, who desire to do so, to join in 
such application. The agreement, after final revision in the light of 
facts presented at the public hearing and signatu:"e by such applicants 
shall De fori^arded by such Deputy Administrator together with applica- 
tion, transcript of testimony, reports of advir.ers, and his own report 
thereon, to the Division Administrator for Division VIII. 

If the latter ppproves tha application and ngreenent , he shall 
forw.-ird a copy ther^eof to the Division Administrator for the Division 
administering the code under which labels are to be issued, who shall 
return the same to the Division Adr.iinistrator for Division VIII together 
•'ith his report thereon. Additional hearings or opportunity to be 
heard nay be provided in the United States, if the facts within the 
particular industry or justice may require. If such report of the 
Division Administrator for the division administering such code approves 
the application and agreement, a,ll the documents shall be forwarded to 
the Administra,tor for signature. If such report disapproves the 
application, the Division Administrator for Division VIII shall submit 
the complete file to the Assistant Administrator for Policy for decision, 
and submission oy him to the Administrator for signature. 

By direction of the Administrator: 



G. A. Lynch, 
Administra.tive Officer. 



9759 



-173- 

AP?E"_r.nix r. d. 

To. 624-6, re: Governn.int Contracts 

EXECUTIVE ORDER 

ADi:ilTISTR\TIOTT 07 THE HATICjAL iroUSTRIAL RECOVERY ACT 

By virtue of the ruthority vested in rae ty the act of Congress 
entitled "AIT ACT To encoti.i'a:f^c nr.tional iiiJuatrial recovery, to foster 
fair competition, .?nd to provide for the constraction of certain useful 
public T,-orks, anci. for other pu-poses", ap'oroved dime 16, 1933 (Puhlic, 
ITo. 67, 73d Cong, )» and in order to effect the -pur-ooscs of that act, it 
is he:>-o'by ordered that — 

(1) Contracts for S^axj-olies. Every contract entered into within 
the limits of the United Gtates ("by ^^hich is meant the 48 States of the 
Union, the District of C^l-'-moiaj the Territories of Hawaii and Alaska, 
the Panama Canal Zone, Puerto Rico, and the Virgin Islands) by the 
United States or an^' of its rgenci-s or instrumentali'.ies for sur)plies 
mined, produced, or manufrctured in the United States as contemplated 
by section 2, title III, of the act aiTOroved March 3, 1933, entitled 
"AIT ACT linking aopro-oriations for the Treasury and Post Office Depart- 
ments for the fiscal 3'"ear ending June 30, 1934, and for other purposes" 
(Public, :;o, 428, 72d Coj?r.)» e-^cert as set forth in the proviso under 
paragraTDh (a) belo',7, sh-^,!! lorovide and require that: 

(a) The contra,ctor shall comply "dth rJ.l provisions of the ap'olicable 
ap-oroved code of fair competition for the trpda or industry or subdivi- 
sion thereof concerned, or, if there be no apioroved code of fair com- 
petition for the tr?d,; or inoastry or subdivision thereof concerned, 

then '"dth the -DroviF.ions of the President's ReemDloyment Agreement pro- 
mulgated mider authority of section 4(a) of the foregoing act, or any 
amendment thereof, '"ithout rogr^rd to ''/hether the contractor is himself 
a TDarty to siich code or agreeraont: 

Provided, That inhere suiDolies are -ourchased that are not mined, 
■Droduced, or manufactured in the United States the special or general 
code of fair •oractice shall ii'o-oly to that "oortion of the contract executed 
'.■'ithin the United Status. 

(b) If the contractor fails to comnly -'ith the foregoing provision, 
the G-overnnent mpv bv nritten notice to the contractor terminate the 
contractor's right to riroceed -fith the contract, and purchase in the 
OTD-n marlcet the undelivered portion of the suDTDlies covered by the con- 
tract, and the contractor and his sureties shall be liable to the 
Government for any excess cost occasioned the Government thereby. 

(2) Disbursing officer shall De :held liable for any payment made ■ 
under the provisions of the forogoing set, or an,y Executive order issued 
under authority of that act, or for the unobligated balance of any over- 
payment involved. 

?RA1TKLI1I D. ROOSEVELT. 
The ",/hite House, 

August 10, 1933. 

(No. 6246) 
9759 



-179" 

ap~- e:di:: e. e . 
e;cfcutive oedeh 

i>Io. 6646 of M'-rch 14, 1934 
G0VER]^E:E'T C0FTEACT3 MD CONTRACTS i:-JVOLVI!TG THE 

USE o_j' GrOw.i-.nL-zv's Euiros 

By virtue of authority vested in me as President of the United States, 
it is hereby ordered th-t: 

1. (a) All invitj-.tions to "bidaers hereafter -Dromulgated by or in 
behplf of -^jLy execiitive ueportinent or indenendent establishment or 
other agency or instrur.sij.talily of uhe Unted States, including govern- 
ment o-wned .^nd governReut corjtrollod corTooi-^tions (all of tho foregoing 
being hereinafter descr:'bed as agencies of the United Stp.tes) , shall 
contain a lorovision to the ef ;"ect thp.t no bid vrill be considered unless 
it includes or is accov/nanied oy a certificate duly executed by the 
bidder stating that the bidder is coinlying \:'ith and -..'ill continue to 
coniDly '-'ith each a'cproved code of fair cor.i-'etition to 'vhich he is sub- 
ject, and if engaged in pny trade or industry for which there is no 
aiD-nroved code of fair coraootition, then stating that -;S to such trade 
or industry he has becone a vr.rty to and is complying V7.ith and will 
continue to comply '^ith an agreement with the President ■'onder Section 
4(a) of the National Industrial Recovery Act. 

(b) llo bid "hich does not comply ^"ith the foregoing requirements 
shall be considered or accepted. 

(c) All contr--cts pnd nurchase orders autaorized by any a^^ency of 
the United States snail contain a -orovision to the effect that the party 
or parties awarded any such contract or purchase order shall comply with 
each approved code of fair conijetition to ^ hich it is subject and if 
engaged in any trade or industry for which thtre is no sriproved code of 
fair competition, then, as to such trade or industi-y, with an agreement 
with the President as aforesaid; and thnt the United States shall have 
the right to cancel any contract for failure to comr>ly with such pro- 
vision and make onen market ourchases or have tne "^ork called for by 
the contract otherwise rierforiaed, at tlie e:-nDense of the contractor, 

. (d) Ho agency of the United Strtes and no Government contractor or 
■sup-Dlier shall hereafter acceijt or/ourchase for the -nerformance of any 
contract or purchase order or enter into any subcontracts for any 
articles, materials, or supplies, in whole or in pn.rt produced or 
furnished by any person wno shall not have certified thpt he is comply- 
ing with and will continue to comply with ep.ch code of fair competition 
which relates to such articles, materials, or supplies, or in case there 
is no approved code for the whole or any portion th'^reof, then, to that 
extent, with an agreement with the President as aforesaid. 

(e) The foregoing provisions of this order shall likewise apply 
to all contracts and purchase orders authorized by any State, municipal 
corporation, local subdivision, person, or corporation in connection 
with projects carried out or to be carried out wholly or in part, with 

9759 



-180- 

funds loaned or granted "by any agency of the United States, and all 
contracts and agreements for the mslJ.ng of any such loan or grant shall 
contain a provision reauiring the State, manicipal corporation, local 
subdivision, person^ or rorDorrtion receiving such loan or grant, to 
comnly vith the -Dv-^visions of this order; provided that this ^aragranh 
shall not he construed rs requiring tho restriction of the use of 
material to those produced irfithin the United States nor to require price 
different ia.1 in favor of such materials. 

.' ' -■ 2. Any person falsely certifying as to comnliance as aforesaid 
Mio submits any such proposal, hid, contract, or subcontract, or accepts 
any purcha,se order, may be punished as provided in Section 10(a) of the 
National Industrial Recovery Act, by a fine of not to exceed Five 
Hundred Dollars (iiCOO) or im-orisonm^nt not to e::ceed six months, or 
both, and in event of ai-jy such false certification by a.ny such uerson, 
any contrac'". , subcontrac ■: ^ or T'-irchase order to r/hich he is r.arty secured 
by or in furtherance of 3.n.y sw.li r>rc\^oscil or bid may be cancelled by the 
other ■'^a'^ty thereto, and the unfini'jhed portion thereof com-oleted at the 
expense of the pexson guilty of such false certification and his sureties, 
if any, 

3, Wienever a dispute shall arise bet\¥een any agency of the 
United States and any bidder, contractor, supplier or other person as 
to compliance with any cade of fp.ir competition or with an agreement 
with the President as fiforesaid in connection with any proposal, bid, 
contract, subcoir'.rrct , or purchase o'-rder mentioned herein, the Adminis- 
trator -for Indue L>;al Recovery, or such agency as he shall designate, 
shall decide such disTDute and, for i;he purposes of action under this 
Executive order, such decision shall be final and conclusive; but the 
determination of such agency of the United States shall be effective for 
all puriDOses pending such decision. 

4, All -orovisions of a-oiiroved codes of fair competition shall apply 
to the making and performance of contracts '^ith or sales to agencies of 
the United States. 

5, The Administrator for Industrial Recovery may make exceptions in 
specific cases or otherwise under this order whenever such action shall 
be recommended to him by an agency of the United States and when in the 
judgment of the Administrator justice or -oublic interest will best be 
served thereby. 

6, Any Torovisions of Executive Order Ho. 6246, signed August 10, 
1933, or any other. Executive order, nnd any rule or regulation in con- 
flict here'jith are hereby to that extent modified and rescinded. 



PRA1«(LIN D. ROOSEVELT 
TIIE '.iHITE HOUSE 

March 14, 1954. 

11653-2=^ ••;•■' ••'^;" -\ ^■ 
9759 " -.'■.-••>= ;••/): :, 



"131- 

Ai^pendix 7 J 

SECTIO:" 0? jEA OiFICE I'A-^XJAL 

KE: DECISIOrTS I.' P.R.A. CASES 

iSADIKG. DECISieFS ---I-E V-E-LL 

B. P.H.A. Cases 

1. TrusteeT, of the Western State Federation of Lator et r.l, v 
SimiDles Shoe ^ "vxir.f actircing Co., Wis. Supt. Ct., l-o. 105, Jime 26, 1934 
(■Tel son, IT.Je) 

A Wiscor.sin Corioorratio-a which denies to its emplojiees the right 
to self-organize, to bargain collectively, and to select their own 
representr.tives for such i?urpose, rcay he enjoined froi" so doing hy a 
st"te co-oi't on the ground th" t the eiirployer is violating the State 
Eahor Code, In,.p-Uictive relief may he oot:'.ined hy a labor nnion for the 
benefit of its mamhers vritnout su'^erii.iposing the llation-:..! I"nd"j.s trial 
Eecovery Act uv>on the State Code. 

It was alleged in the instant c;ise th .t the enroloyer had violated 
both the State Labor Code vad tne President's "leenijjloyraent A-rreenent. 
The lower coxxrt held th,t the conpl int state " ca-ase of action on the 
P.eemplojTnent Agreement out not unc.er the State Code. The Lrbor Code 
cqnnot be given such limited effect. 

The decision of the lo''er court, although based on the Federal 
Recover,}'- Act, is affirmed on av-e?.l on the ground that the findings 
sustained by tne evidence, w.ai-ranted the issu^ince of tne inju:iction 
u:ider the State L.-bor Core. It is, therefore, uiinecessary to decide vdiether 
the State court had jurisc'iction of a, cause of ^..ction based on the 
Recovery Act uiider section G (c) giving the Federal courts jurisdiction. 
The emplo;j/er's contention tut the Federrl co'orts hiave excluded juris- 
diction would seem, in the ■ ^resent strte oi tne lav/, to be sound. 

2. Fruns et rl, v. Fairlami Flu- Dressin'_. Co., 114 P. J. Eq. 462, 
168 Atl. G62, P. J. Ch., gov. 14, 19:'5. (Bigelow, V.C.) 

When the imion of defendant's employees called a strihe, dtefendant 
threatened to hire only members of a riv: 1 union. The strifces so-ught 
an injunction preventing the defendant, a P.H.i-. signer, from forcing 
them to join the rival union before being reemployed.. The court held 
that 0, state cor.rt h-^s j'jrisciction over P.R.A. suits; that the P.R.A. 
is a v-.lid contract; that eraplo5''ees may sue for a breach thereof; and 
that the defendant's action constituced a violation of its agreement 
with the President. \ 

3. J. d. T. Cousins Co. v. Shoe d Leather Workers Industrial 
Union of liew York, et al., 150 rase. 575, P.Y. Sup. Ct., jov. 18, 1933 
(Smith, J.) 

In o suit by a man-al--ctnrer to restr:iin a union from iml.awful 
piclteting intimidation and assault uoon its eiirijloyees , defendant's 



-182- , 

allegation, that the ina,n-dfacturer had signed the President's Reemploy- 
ment Aii.reement v/hile fraudulently representing he intended to conviDly 
therevdth 'd had violated tne Ai[,recment vith respect to vi&res , hours 
and collective Dar^.aining, is not -. good defense, 'hvliatever right such 

fraud might give to the. Government" . The alleged constitutional 

right of the employees are not availVole as a defense since it was not 
alleged that any of the employees were raem"bers of the defendant union. 

4. Ldwards et al , V. The llev; York Edison Co., 149 I'isc. 722, 268'" 
II.Y.S. 24, Siipt. Ct., ITew York Co., Dec. 11, 1933. (Callahan, J.) . 

Under a State st,atute, an injunction h.y employees to restrain an 
emplo">rer from violr'.ting the collective br.r^'i'a.ining provisions of the 
S.H.A. ana the II.I.H.a., will te denied if it is not s^iovm that the 
remedies at lav hive "Desn exhausted, or if sufficient coercion is not 
shorm, Iven where legal remedies have "been e::hausted, Federal agencies 
have denied similar a--Tolications for relief ia the past, and the pur- 
pose of the State statutes is to secure cooperation ¥dth the Zederal 
C-overnment, 

5. Amalf -'mated T/orkersj etc., v. Reed Bros., Cir. Ct. Milvfankee 
Co., "7is., Dec. 20, 1933, (Aaron, J.) 

" The defendant co^ipany, a P.Il._.. signer, discharged 12 of its em- 
ployees for joining plrintiff -onion and threatened to treat others 
likewise. In overrtiling a c.r.vau-rer to a petition filed 'by the union, 
the court held an \inincorp orated uiiion can successfully sue to enforce 
the lahor provisions of the F.H.A. , even though not a "oarty thereto, as 
section 7 (a) of the '.•.I.:::. a creates a right, a.nd for every right there 
is a remedy, E::clusive jirrisdiction under the ll.I.R.A, v;as said not to 
Toe vested in the Federal covirts. 



■■■ appejdix g- g 

SECTIOiI or uRk OFnCE ^IAjUAL, 

EE: SUirS JOR BACK waghs ujder 

PSA 

LEA1jIjCt"DECISI0:-S'— VIII-A ■V-E-47 ; •- 

VIII. PrG"SirEVT'3 liEEliPLOIilLJT AGKSElEITT 
A. SUITS -^OR EAGI: ^/AC-ES: 

1. Beaton v Avondp.le , "dst. Ct., 2d Jud, ijist., Colo., Oct. 25, 
1933 (■ crououtili) 

Wlien an employer signc t'le Fr^jcident 's leemplojanent A^-reement he 
does so for the ;>enefit of his employees, and if he thereafter fails to 
pay the v/a^^es c?.lled for tuereiii, taey may' mo.intain an action against 
him in their own names for the difference tetreen v;hat they were paid 
and vijhat they phoulJ. have 'been paid -under the Agreem.ent. 

2. Chipa V, Re^jas, J.F.Gt., T-ascon, Kriz., llov, 24, 1933. (Eud- 
iong, J.) ' 

iraoTL r,-n enployer displays the Blue Ea£;le he gives notice to the 
putlic t hat ne ir paying F.R.A. v;a::,-es. An employee who receives less 
is entitled to recover the difference, (""o, written opinion) 

o. Eethel'v. Karras, C. F.Ct . , d-trjit , Klch., hov. 1933, (Liddy,J.) 

Trnere an employer signs the F.R.A. and Irter fails to pay the 
minimiun ivages ;-rovided therein the eLplcyee may sue a,ad recover from 
hira in a. contrrct action. 

4. Godl-in v. Jett, ^'im. Ct. -lot S-orings, Ark. 1933 (Led^erwood, J. ) 

In a suit for hack wages tinder the P.R.A., it was held tliat the 
plaintiff ha.s received the full amount due him -ujider his contract with 
defendant and imder the F.R.A. (do written opinion) 

5. EroTm v. Hunter, CityCt., 'Wichita, I'rns. 1933. 

An employee was permitted to recover v/a!ges under the P.R.A. 
(i'lo v/ritten opinion.) 

6. ■'i^'illiojus V Rienze Valet Co., liun. Ct., Chicago, 111., 1933 
(Casey, J.) 

The pl-aintiff', an emplo^'^ee'," vras entitled to recover ■back wt.ves 
UJider the P.R.A. on the ground th:t he v;as' i 'third party beneficiary of 
a valic contract entered into hetv/een the defendant emrployer -and the 
President of tne United States. ("do written opinion.) 

9759 



7. r.rovm v-. "'est Side Co-1 Co., City Ct., Wichita, Kans. Jan. 18, 
1934 (l-iarmers-, J.) 

An enrployee ^-'hose ^.vages were rodwced to the minmm-uin alloii7ed "by 
the President's Hr^emplo./iiient Agreement was r-llc\ved to recover the 
difference "oetv/een the resent wage a.nd v/hat he received "before the 
Agreement 'became effective. The Agreement provides that v/a^es must 
not he reduced-, (ho written oninion.) 

8. Tedford v. Taylor, .'.p. C t.., Kansas City, Ho,- Jan., 1934. 
(Dorsee, J.?.) 

In a suit for haci-: Vv'ages imder the President's Reemployment Agree- 
ment, it i-as held that the receii:it and display of the 31ue Eagle hy 
defendant erployer constituted a valid contract "beti^een defendant and 
the government; that the employee, as a third part beneficiary, night 
recover on the' contract , and tlmt defendant, nE.ving demanded and 
received a Blue Eagle, could not later deny its of fectiveness p.s con- 
side r, at ion, 

9. GrGleck v^ Amsterdam, Ibjii. Ct . of Philadelphia, Pa., Janrcary 
TM. , 1934, ho. 1105. (hnovdec, J.) 

A ?7ai tress suing her erployer for hach wages alleged to he due 
under the President's ReciiXi-iloj/Tjent Agreement is entitled to recover, 
even though not a party to the A[:re8Lient, as she is a donee heneficiary. 
The fret tiir'-t she w.as in defentant's employ at the time tne Agreement 
was entered into and therefore gave no consideration, is no defense to 
the action, for it is settled, that no consideration need move from the 
beneficiary to the promisor. 

10. Parlo V. Hilton et al., J. P. Ct,, Meclclenourg Co., h. C, 
Feh. 19, 1334. (Smith, J. p.) 

Under the terms of the President'' s Reemoloyment Agreement provid- 
ing for ti^re and one-third overtime, an eirroloyee who worhed overtime 
without receiving rdditional pay is entitled to recover from his em- 
ployer the difference het\7een Y/hat he was act-'ja.lly paid and wliat he 
should hr.ve received under the Bl?.nhet Code. 

11. Thorrpson v. Cohen, Vxm. Ct., Groenshoro, h. C. j'eh. 16, 1934. 
(Powell, J.) 

The difference hetwecn the v/ages actually paid to a wor2:er and the 
amouat prescribed hy \^he President's Reemployment Afireement, signed 
voluntarily by the employer, is recoverable by the employee as he is 
a third party beieficiary of the controxt m.ade between the President 
and the employer. The burden of establishing an estoppel due to the 
employee's acceptance of less tlvan the minimum wage stas held not met by 
the emiloyer. 

12* Crowson v. Alley et al., J.F.Ct., Precinct llo. 1, Dallas, Tex,, 
Jeb. hO, 1934. (Baldwin, J. ?.) 

When a partnership c.:)nducting a pliiirmacy signs the President's 

9759 



-185- 

Se employment Agreement, promising to pay a ninimum srlary of $14»50 
per v/eek, with tine aucl a tliircl con--Tens<--tion. for overtime, an employee 
who works overtime is entitled to tie aac.ition-.^l rate of com-oensation 
and may maintain an action therefor in his cvn name. 

13. Tracy V. Strjreh, I'li:!. Ct., Omaha, ITrbr., 1S34. (''heeler, J.) 

'"'here, i^ider txie president's Reemployment Agreement a 'barter shop 
is allowed to remain open 48 hours per v/eek, an employee suing for back 
wages must show th-t he vorked the full time before he ca.n recover the 
minimum wage permitted hy the Agreement. 

14. Hardinghaus v. Kodge Drive It Yo-arself, Inc., Hun. Ct,, Cin- 
cinnati, Ohio, ilOi 20357.7. (Forcliheimer , J.) 

The P.n.A. does not ra-ovide for extra compensation for time worked 
in excess of the hours of Irhor permitted hy it. The policy of the 
Agreement is to increase emplojinent by reducing the number of hours 
each man may work and a person cannot recover ior time worked in excess 
of tnat stipianted in his em-oloyer's contract vlth the President. Plain- 
tiff's judgment was limited to the difference between wh^.t he ims actually 
paid and the miniiaitm wage set forth in the P. P. A. 

15. TiJalter v. r-'j-man-Ro s e Tohacco Co., City Ct., Buffalo, 11, Y. , 
May 22, 1934 (Kceler, J.) 

An employer in signing the P. 3.A. enters into a contract for the 
"benefit of his employees who ma.y successfully maintain an action for the 
difference "DetTreen wiia.t they were paid r.nd wliat they should laa.ve been 
paid under the Agreement, The employee was also allowed to recover for 
time worked in excess of that pennitted by the P. P. A. (h'o written opinion.) 

16. De Vries v, Mid-.7est Walkathon Assl.n., Inc. et al Mun. Ct., 
Black Hawk Co.-, Iowa, ho. 16-jei-A, H-y IS, 1334, (Howrey, J.) 

It is a well establisned principle of law that two 'oarties may enter 
into ? contract for the benefit of a third person, ho consideration need 
move from the beneficiary to the promisor. Therefore an employee may 
successfully maintain a, suit to recover the wages the emi3loyer agrees 
bo pay on signing the P.P. A. The employer receives .aniple consideration 
in the right to display the Blue Pagle. 'The accpetance of less wages 
than the P.P. A. scale -does not constitute a waiver by the employee. 

17. Fields v, Wysockit, City Ct., E. St. Louis, 111., June 13, 
1934 (Cook, J.) 

An emploee , being paid $2 per week plus room and board, sued ujider 
the P.R.A. torecover the difference between $2 and $15 per week, the 
minimum wage permissible under the Agreement. A jtiry rettirned a verdict 
for $225 pKis a.ttoriiej'-'s fees, 

13. "oven v. Peterson, hun. Ct., Polk Ct., Iowa, Dec, 23, 1933 
(llershon. J. ) 

The President's Reemplo-yTnent Agreement was entered into for the 

9753 



-136- 

benefit of employees, and -i-ny t.nTnloyee receiving less v/ares tha.n those 
specified in- the Acxeeiaent rue.T av.lr.t ..in a.n -ccion in his oi,7n narne to 
recover the minimijj.i vio.re, (:"o VTitten opinion.) 

19. Johison V. 2en Shra,go c, So.-s, City Ct., H-^Jiunond, Ind. , Jvae 
14, 193-1-. {■\Jhitp:::eT, J.) 

The P.R.ji. is a co:itract for t.ie benefit of third --^arties and 
may be- enforced aj.ainst an employer by an employee vho receives less 
than the mininrum wa.;^es established by the Aii;reement, (i"o vritten opinion) 

20. -Jagel V. hades, nun. Ct., uitchell, S. Lak. , hay 20, 1934. 
(llor^^an, J.) 

The sijning of the F,'..A, becomes a binding act on the -lart of the 
employer a.s soon as the Slue Evde is displayed. The minimum ivage pro- 
visions thereof may be enforced bj- j.n emploj-ee. The employer, however, 
is entitled to cedr.ct tap reasonable value of boo.rd f-ujrnished. An em- 
ployee claiming co'.npensation for overtime v.lll not be allov/ed to recover, 
it if he has destroyed his ovra ti.ie records. ("To written opinion) 

21. Petruslsa, v. :'-rina, Co.Ct., Allegheny Co., Pa. ho. 368, 
July G, 1934. (Soffel, J.). . 

A restaurant employee is entitled to recover the minimum wage of 
$12 :oer week as -rovided 1)1 the P.?.^^., the emploj^er having signed the 
Agreement. Plaintiff v as not a -arty of the Agreement, but this is 
not essential since she is entitled to recover as a donee beneficiary. 

3y dis;nlaying the Blue Eagle cefendant is novr; estopped to deny the 
applicability ?aid efficacj" of the P.Pl.A. 

Plaintiff failed to aver the basis of her clrrim of $12 per week, 
a -d fp,iled to introduce as evidence the certificate of comioliance signed 
by her eraj)loyer. Teclinically, these should bar her action, but this 
result would be contrary to tae spirit oi the ".! .l.R.A. , particiilarly 
since plaintiff's brief contains the certificate of compliance signed 
Tby the defendant. The court takes juc'lcial notice of the h.I.pL.A. 

22. SaraiEita v, Iinboscioao, hun. Ct., of Cleveland, Ohio, ITo. 
715''79 Jiane 14, 1934. (herrick, J.) 

The plaintiff v;as awarded a judgraent for $237.27 and costs which 
s-um represented the difference betv/een vmat he was actually paid and 
the ejiiount his eir^loyer agreed to po.y. him bj-- signing the P.P. A. 

23. Taylor v. Joe 0. Prank Co., !'un, Ct. of Dayton, Ohio. lIo.5969 
June 3, 1334 (iirrtin, J.) 

An employee is eiititled tD recover back wages, including the" time 
and one-imlf for overtime on tae growids th.t he is a third party bene- 
ficiary to ;\ valid contract entered ii.to betvreen the employer and the 
president, '.'either the employer or tlje tmployee can \7aive the minimvim 
v/age avid/or i laximwii hours provisions of the Agreement as "exceptions" may 
be . ranted only by the iT.R.A. The employer received ample consideration 

9759 



-137- 

in that it enjoyed the public's i2"~'0d Y;ill, i;^overninental suport, and 
the cooperation oj. other enrj;.lo;;er- signers throio^h the display of the 
Blue Ecvgle. 

The h'.I.R.A. vdll "be --re-iined to "be coi'.stitiiti 3no.l -until the 
contrary is affirraitively shown. 

24. Morrison v. G-rntler et al "ruii Ct,, 1st Dist., Broohlyn, h.Y. 
Sept. 7, 1934, (Strahl, J.) 

An emjDloyee may recover minim-'jin vages imder the P.R.A. plthoiigh he 
did not sign the Acreement. It vias signed "by his eirroloyer, a cor]3or- 
ation for his benefit. 

The h.I.R.A. is valid. It is within t"ne constitutional power of 
Congress si'ice it is jrsed on t"ne doctrine of affectation vith a public 
interest. The co^oi-t will tahe Judicirl notice of the fact tliat the 
public interest is c,ffectea liy an existing emergency. It is an economy 
planning act on a, ra-tijnal scale designed t :, meet the existing emergency 
of disorg .nizati'n of industry .nd v'idesT>re^,d miomployment . 

35. Davis v. Earam, City Ct., duff-lo, a. Y. , July 5, 1934. 
(Zimmer, J.) 

Under the P.R.A. a d employee is entitled to recover from Ms em- 
ployer the minim-om vrages prescri'bed in the arreement, Tlie actuaJ 
aanount of time the employee v/orks is a qtiestion of fact, which may he 
complicated 'tiy defense alleg'tions th .t plaintiff spent much of the 
time working on his ovm "orivate projects, T/hen an employee of -: g,arage 
works partly on a ;nriv.'..te invention and partly on cars 'brought in for 
repairs, he is entitled to compens'.tion ;/.t p.R.p. rates for time ac- 
tually s-oent in repairing the cars. 



-183" 

AFPE-'LIX H H 

1"ATI0:;AL ?ZC0T2?:I ./\ZMIi-ISTHATI01I 

Immediate Release Release llo. 191 

Aiigust 5, 193S 



'.'ational Recovery Adninistratcr Hugh S. Johnson today issued 
the folloring sta.tement: 

"We iia,ve received re-^orts tht\,t mpny eraplojrers are hesitating 
to sign the President's Reemiployment Acreeraent "because of a 
fear that under Section 10("b) of "'.I.E. A. the PresirJent might 
exercise his pov/er to cancel or noriify any order or approval 
and thereh;- change tne terms of the agreement, 

"In the first place, I question the validity of this inter- 
pretation of the h.I.h.A. The right to cancel or modify his 
owa axtion does not imply any gi'ant of pov/er to the President 
to clia.nge tac ouligation enterec- into "by .-^ -i'erson v:ho has 
signed s.n agreement vdth the President. Certainly it is un- 
thinkable th-^.t the President v/ould a.sh employers to sign 
agreements reserving to himself the -^ov/er to rewrite the 
agreement and then hold the ot..er ;.-'arty "bound by aji obliga- 
tion he never assumed. Indeed it is surprising to thin]: tliat 
anyone should impute any such i:.tention to the President," 



9759 



-189- 
APFK'B IX II 

ilBA Friday 

Legal Division May 18, 1934. 



To: Blaclo.vell Sniitli, associate Coixisel 

From: Laiirance A. Knapp 

Re: Section 7(b) of the ^-xt. 



I want to get to you wliile they .are more or less collected 
in my mind some oi my thoiaghts atout Section 7(1)) which lead me to 
thin!-: that an agreement a-'-oroved thereniider hecomes binding iroon the 
non-pp,rties , 

I thinh that the use of the terminology "sh^ll lic.Ye the some 
effect as a code of fair cor'oetition, a-'proved ^.y the President under 
subsection (a) of Section 3.", v/hen compared to practically identical 
lang-Orage used at t.ie cnc- of Section 3 (d), is strong evidence tlia.t the 
same meaning w:.s intended in both si'l - p ctians. Since it is obvious 
that r. code imposid ia-ul3r 3(d) bind^; every member of tne industry, it 
follov.'s that a similar intent vfas probably ascribed to that lan.guage 
vifhen used in 7(b). Ey com-arison, note the necessa-ry tibsence of any 
such lang-uage from Section d(pj. 

harroiang dovra. the a.rguinents on this point, it seems most 
logical to assume that the words "same effect", v^hich appeatr in this 
piu-aseology at the end of subsections 3(d) and 7(b), must mean "c.ll 
of the effects" of a code of fair competition. The primary statement 
as to thwt the effect, or effects, of an approved code of fair com.petit- 
ion are, is contained in subsection 3(b) vdiere it says tliat "the provis* 
ions of such code sha.ll be the s tr.ndards of fair cpuroetition for such 
trade or industry or subdivision thereof." I think v/e should distin- 
guish between the remedies and penalties provided in 3(b), (c) and (g) 
from, the effect. To say tlia.t the provisions become "the standards" . 
means that tjiey bind the industry. The effect of non-compliance, tha.t 
is, remedies and penalties, may differ but do not go to the "standards" 
effect of the ap-iroval of the code or the agreement, as the case may be. 



Laurence A. ICnapp 
CC-liessrs. Scott Assistant Counsel, 



L. H. C. 
Lronz 



LAK DC 



9759 



J-uly 26, 1934 



-190- 

N. R. A. APPJ^IX^.^. 

LEOAL riYISIOlT 

L E A L U E 1:1 R A N D U M 

NO. 53 

To: Legal Staff 

From J Biackwe] 1 Smith. 

Subject: Section 7(l)) of the K. I. R. A. 

Whether sgreenents ap-oroved "onder this Section hind 
others than those '^^ho aro psro^°s to th*=> agrrfi=>-iTip>nt, either as in- 
divid-j.als or throiidi represenoativss, has cecom-i a live question. 
The megning of '(..je Seci'ion in this regard is noc entirely clear. 
(Note: This memorandaiqi does not apnly to lahor agreements under 
the Constrii3tion Cede i:.' '"hicli a coiliination of Sections 3(a) and 
Vlb) proceuare has "been tuidertaken so as to hind all within the 
region.) 

It is my Opinion that non--assenters to the agreement are 
not hound hy its terms. '-Lhe reasons are somewhat as follows: 

1, The words "estahlislr ty miitual agreement" have a 
well-loiown nenning and thair use here is difficult to 
explain away. It is a great d'^al to suppose that per- 
sons not parties to ''a mutual agreement'' and who in fact 
nay have specifically dissented from its terms, shall he 
hound therehy. 

2. There is no provision in the Section for an oppor- 
tunity to he heard, whi oh would seem to he a necessary 
prereouisii:e to the hinc'.jng of ::on-assenters. It is 
noteworthy that in Sectxuns 3(d) and 7(c), whereunder 
non-assenters may he hound, hearings are required. That 
hearings are not required hy 3(a.) (eiccept as appTicahle 
to persons outside of the industry) may he ejcplained hy 
the fact that codes therevmder rre proposed hy those 
"truly representative" of the industry, heing considered 
the act of all and thus hinding all. For those in other 
steps of the economic process not represented hy the 
sponsors and who may he affected hy code provisions, 
hearings are r,rovided. It would seem, therefore, that 
the supposed parallelism hetween Sections 3(a) and 3(d) 
on the one hand, and 7(h) and 7(c) on the other, not 
only stops far short of retutting the ahove conclusion, 
hut gives it material support. 



9759 



^ 



~191~ 

3. The language in the Section to the effect that 
the standards estahlished in such agreements vrhen ap- 
proved shall have the same effect as a code of fair 
competition approved iinder 3(a) is not persuasive of 
a contrary conclusion, for "effects" may well refer 
to "penalties" for violation as -well as to "all of 
the effects." 

A second question is Y^hether under this Section employees 
are sutject to the penalties of the Act. It seems that they were 
not intended to he lialile under 3(a) codes, and that therefore they 
are not liahle under 7('b} agreements which have "the same effect". 



Blackwell Smith 
Acting General Counsel 



9759 



-192- 

■ A Ppa^n:TX XK #19 ■' 

r.R.A. , Tuesday 

Le^al Sepearch ■ fflkOPAinjIIi June 12, 1834. 



TO: Cliprles H. IZruKs, 

70S Albee Juildin^ 

?HOi.: Thomas Ci .Billig 

211 Lenox Building 

Re: S3CTI0r 7(b) 0? THE ACT. 

In responte to yoxiT retuiest, I am subinitting a raeraorf,indum of lat" treat- 
ing of the interpretation of Section '/(!)) of the optional Industrial 
Hecovery Act. This mejr.oranduru uas irpfted by I/ir. Philip F. Herrick of 
the Legal E.esearch. You vrill notice he concludes that the agreements 
provided for in Section 7 (b) of the Act are intended to bind only 
those \7ho are parties to then and not to bind those -'ho, though mem- 
bers of the industi'^'", took no part in making the agreements and who do 
not consent to be bound bj?- them. 

I submittec ivir. HerriC'i's raer.orrnd-'^ra to I'.t. Robert ?. Reeder of Legal 
Research vrho, eftar stuc'-'-ing the oaoer carefully, concurred in the con- 
clusion reached o-r i.r. Herriek. In ni s inemorc.iCium to me Mr. Reeder says: 

"This clo.uss is not so Dlirnsed as to shon that an agree- 
ment necessrril"'- oinds collec+-ively all e'nploj^ers ano employees 
in the indur_.tr';^ under consideration, and the clause does not 
contain the protective -jrovisr.on that the parties shall be 
truly representative -hich Congress ^7oald have provided if it 
hac intendec thct all employers and employees in an industry 
be boiuid by the agreem.ent reached. 

"L;oreo- G--, collective bf?^'^aininr, has not retiched such a 
stage of de-"clopment that "e .^hO'.ild look for agreements "by 
all emplo-^ees in an industry ■.ita all employers in an indus- 
try as possible in man - indrsbrie? at the present time. The 
clause \7ill be practically v-orlhless unless it is oossible 
under it to make agreements limited to oarticular em-oloyers 
and their employees. " 



Thomas C. 3illig, 
Director of Legal Research 



9759 



-19S- 

iT.H.A. iviEivIOEA.DUi;; Konda^/ 

Legal Resen.rch Jiine 11, 1934. 



TO: Hr. Jillig 

FROM: Phili;o "i". Herrick 

IG: 7 (b) CJ' IZi AOT 

Certain employees cxic employers engaged in the Plastering Industry, a 
part of the Constructior Industry, orooosed to establish a '7n.ge c^ree- 
ment under Section 7(b) of the I". I. l.A. This section reads as folloTTs: 

"The Presicent shtill, so far r,s practicable, f?fford every 
opportunity to employers cud. emolo'-ees, in any trade or indus- 
try or subcivision thereof '-^itii respect to v/hich the conditions 
referred to in clruse (l) and '•2) of subsection (a) prevail, to 
establish b""- mntiial agresmeut, the standards a.s to the mc'iimum 
hours of Icbor, minimum rates of ;oay, and such other conditions 
of employment fs mry be necessa.r)'" in such trode or industry or 
suoc.ivision thereof to effectuate the policy of this title; and 
the standard'^, estrblished in such agreements, when approved by 
the Presi6.ent, shall hpve the sajne effect as a code of fair com- 
petition, p-o^roved b",'- the President under subsection (a) of 
section 3. " 

To date no agreements have been a.poroved -"jnder this section. An inter- 
preto/:ion is desired to deterinine whether Section 7(b) e.pplies to all 
emplo^rees and emtjlc'-ers in the industry in that region, or '-'hether the 
agreement extends only to thofe T/ho are pr,--ties to it. 

It is my opinion that an agreement approved \inder the section in Ques- 
tion e::tendp onl','- to those T.'ho are parties to it, rnd that it does not 
bind the other members of the incustrv. 

I. In the first place, it '7ill be noted th;it ern'olo^^ers rnd emiolo^.'ees 
ma''" establish Irbor stl^nG,ards by mutual a.>';reement . An rgroement implies 
volition. It is ordinaril-- binding onl^^ upon those 'vho assent to it. 
The YTord is, in mr" respects, s^monymous ^:'ith "contracts", and it is 
elementary that t' o "oersons cm not by their contract impose binding- 
obligations u-oon third -or-rties. (See Odneal v. State, ?4 S.'J. (2nd) 
595 (Tex.); Douglas v. '..7. "illiams Art Co., 85 S.E. 993 (Ga.); 
Michael v. Kenned^y, 143 S.'J. 983 (i.io.); Sage v. TJilcox, 5 Conn. 81; 
Barnard v. Lanchashire Ins. Co., 101 Ped. 35; United States v. Edgar; 
45 Fed. 44.) 

An agreement d.oes not rrise rrithout the mutual consent of the parties 
(Utlejr V. Donna-lson, 94 U.S. 29). It does not become binding until it 
has been accepted b-^ the prrties upon '".'hom it is intended to be binding 
'Holder V. Aultmcn, ; . c- Co., 169 U.S. Si). Consequently ^hen in Sec- 
tion 7 (b) the frrmers of the Act usee theword "agreement" it is be- 
lieved the-?- intended thrt it should bine, onl" those vho are -barties to it. 

9759 



The legislP.tive history of the Act ^^ives ver3'- little attention to Sec- 
tion 7(b). The volimtr.j:^/ nrture of the ^.^reement, ho^vever, is brought 
out in the testimon-,'- of Le'Tis JDouglar, Director of the Budget, nho, in 
testifying before the House Committee on I7r.ys pnd i.ieanG, stated: 

"I i-^ould just point out, -prrogra-oh (b) of section 7 gives 
industry evei.y opportunity to voluntaril-"- agree v/ith respect 
to the items enumerated in Section 7 (a), and then if they do 
not, the President ma^^ investi-:rte the labor conditions and. the : 
policies fiie.v/r^ges and the hours of laoor, taking into considera- 
tion the different factors, such as skill, and other f.-^ctors, 
and thereaftar may prescribe a limited code of fair competition 
havin'^ to do r.'ith labor conditions." 

II. Section 7(b) maltes no provision for those 'Iio make the agreement to 
be tr^alry representative of their indx^stry. If the agreement was intended 
to have the force of la'.'^r and be binding upon all those in the industry, 
the farmers would doubtless have 'orovided that those who formulated the 
agreement should t^nily represent those Thorn the agreement was intended 

to bind. Under section 3(a) , a code of Prir Com-oetition can not be ap- 
proved unless the President finds that those submitting it are truly 
representative of their trade or industrjr. It would be obvioiisly unfair 
for those representing onlv a portion of the indust:''3'-, and there-fore not 
having all of its interest in mind, to draw up an agreement which should 
be binding woon those niembers of the industn^ v^hose interests are op- 
posed to those '-'be f orr.:L.''.a.ted it. It is submitted tliat had Section 7(b) 
been intended to ■orovide for agreements binding upon everyone, provision 
would have been made for formulation of the agreement b-^r those who were 
truly representa.tive of the industr!?-. 

III. The la.st cla^uce of the section provides tha.t the a.greement, when 
a.pproved by the Presi'dent, shall have the same effect as a code of fair 
competition. A code, of course, is binding upon all members of the in- 
dustry, and it is conceivable tha.t the a.'--reements provided for in Section 
7(b) should also bind everj'-nre in the inriuGtrir. This contention is 
borne out in some extent b:"- the tertimon'- of Senator Wagner before the 
House Committee on TTays md Leans. He srid: 

"There the right to. collective bargaining prevails em- 
ployers and eriroloyees are given the first opportunity to agree 
upon maximum hours, minimum rates of pay, and other working ■ 
conditions. That is, those mutual agreements can onl"'- be re- 
cognized '■■here these right o-f labor to collectively bargain 
prevail. Then Such agreement is airoroved by the President.it 
accuires the character of a code. " 

It is felt, however, "hen the Act usee the phrase "same effect as a 
code of fair competition" it referred rather to the fact that the agree- 
ment should carry the penalty pro "isions of the Act rather than that it 
sho^ild be binding upon a.ll those in the industr;,'-. The agreement be- 
t'"'een the parties 'Tould be, of course, enforceable by the courts I'fith- 
out approval by the President -and without resort to the penalty provi- 
sions of the Act to be a^oplied to r breoch of an agreement reached under 
Section 7(b). The a.greement is much stronger when it may be enforced 

9759 



-195- 

in the criminal courtr ae, Tfell as "before civil trib-'inrls. Interpreted 
in tais light, the a-^reement mc:/ hrvo "the F?jne effect as r code" with- 
out bein^ oinding upon every member of the industry. It is believed 
that this interpretation is the correct one. 

COFCLUSIOF 

The a^-^reements provideo for in Section 7(b) of the IM.R.A. are intended 
to bind onl-'- those T-ho are prrties to them and not those who, though 
members of the incustr-"-, took no prrt in mpJiing the agreement- and do 
not consent to be bound by them. 

PFHerrick:FC 



N.H.A. THiesday 

Litigation Division MFlTOPAJsPUii J^me 12, 1934. 



To: Thomas G. .^illig 

From: Robert P. Reeder 

Subject: 7(b) of the Act. 

I agree vith Lr. Harrick' s memorandum, e:-:cept that on p. 3, seventh 
line from bottom, "court" should read "code". 

This clause is not so nhrased as to show that an agreement neces- 
sarilv binds collectively all emplovers and emnloj^ees in the industry 
under consideratior., rno the clause does not contain the protective pro- 
vision that the prrties shall be truly re-oresentative 'vhich Congress 
wou.ld have provided if it hac intended that all employers ?nd employees 
in an industr-"- shoiild be boi-'jid b-;-- the pgreement reached. 

Lioreover, collective orrgaining has not rerched such a stage of 
development that we suou.ld look for agreements by all emplovees in an 
inriustry with all employers in an industry as possible in many indus- 
tries at the -oresent time. The clruse will be prrctically worthless 
unless it is iDossible under it to make agreements limited to particular 
em-oloyers and their emplo^'-ees. 



(s) Robert P. Reeder. 



9759 



-196- 

APFZ'DIX TL 

:IAJOa 1^0. L. 33^EI'S ./iElAO -^BIL 24, 1934 



l.Iay 25, 1934 
'■-.evised "lay 31, 1934) 



CLLECiiVE :^Ar^Ai:"i;"; j-'dz^ section i, apticls 
III, or THE c:9E ::' : aii cohPetiticj FOii tie 
Cj..3Tajciioi: i.:ixrsT_vr. ^^d ui^deii the national 
ii'DusTaIa^ recovery act 



uEuCRAHDUl. ^ 

r.ie following; is nutted from a menorpnd-om nf April 24, 1934, "by 
Major Geor~e L. ^erry, Li/isioxi Administrator, Division 3 of tie !J. R.A. : 

"1. The process required in securing a collective "'oa.rgain- 
ing contract r^sts solely upon tiie employer and em- 
•^loyee crgrnizations. . All of the initial • -York must 
be executed by such organizations. It is not our 
function to eitl'er encourage or discourage the consum- 
mation of collective bargaining agreements between em- 
ployers and employees. 

"2. Tlien collective bargaining contracts for areas or 

regions aave been consummated by e^^iployers and employees, 
these contracts rau-st be submitted to this Division for 
disposition and that disposition shall be as follows: 

"A. .7e snail, upon receipt oi a collective bar- 
gaining contract, achnowledge same and set 
a date for public hef.ring. 

"B. If t.ie distpiices are not too great, the ]\ear- 
ing slioull be lield in Jashington. If, on the 
other hand, it is not convenient or practicable 
by reason of distances or other conditions, the 
public hes.ring should be held in the leading 
city of the nrea coverei by t^ie collective bar- 
gaining contract. 

"C. State Compliance Directors sho'old be C0iiimui:ii- 
cated with and aslced to taVce such action as 
may be required to properly serve notice of 
nearing so that all interested parties can have 
the opportanity of stating their views. 

9759 



-197- 

(Tills coni;mnicatin^3 Is a ■lut''- or? Division 3, 

TEA) 

"D. Simultaneously witi tie orocaedinss noted, 
we sliall renue?t tie national employer? 
association and the national emoloyees organi- 
zation to select one person from eacli associa- 
tion related directly vdt'- fie collective bar- 
.^^ainin;-: contract to sit with tlie State Cjm- 
pliMice Directcr, or to sit v/it. t.ie Deputy or 
Asiistant Deputy at tie leerinj held in 
Tasz-in^ton. ■ 

"3. Cn the co;ipletion of tlie uearin,^ the records shall he 
im.mediat9ly tr?.nsmitted to tiis Division for study and 
ccnsideratiai as well as decisici as to whether the col- 
lective oa.rgaining cai tract c o-ie s properly within the 
purview of the Construction Code to a dej^rae justifying 
transmission to tne President for approval." 



MI>C3LL ME0U3 IhSTI^UCTIOITS 

Provisions are made under Section 1, Article III of the Code of 
Fair Competition for the Constraction Industry for mutual asfreements in 
divisions or suhdi-'isi^.r s of tiat Oclo. The agreements may fix standards 
of rates of pay, hours of labor, and other conditions of emplo:/ment in 
a region. Certain provisions must be incorporated in such pji agreement. 
These are so noted in the attached outline and with these exceptions the 
outline is given you ohlv to suggest the form of your agreement. 

'r.ie region affected shoul 1 be carefully and definitely boimded in 
your agreem.ent and shoudd be sach that the ;-a-ovisions of your agreement 
will be economicpl ly scuid in all -^a ^^ts of the, r egion . You could well 
Call upon your Divisional Code Authority to aid in defining the region. 
The boundaries must be justified at tie hearing. 

It 13 essential that you levelop rdenuate reioresentr.tion assenting 
to the agreement of both employers and employees, joid to this end, 
assent, insofar as possible.., s.,iould be obtained from non-members of any 
employer or employee association that participated in tie bargaining. 
Infonnation should be fornished the .Acmiinistrator by yeo.rs for at least 
1932 and 1933 not only as to the number of concerns (also their volume 
of business or man hours of vrork) and the number of employees assenting 
to the agreement, but also siuular d ita for those not assenting, all 
within the region. It would be well to advertise in your local -oapers 
and hold a meeting of all interested parties at which the terms of the 
proposed agreement could be discussed. 

Draft your agreement giving consideration in its previsions to 
the probability that it will apply to all people in the region partici- 
pating in tie activity of the division or subdivision, whether assenting 
to the agreement or not. The agreement should be signed by truly repre- 
sentative groups of both employers and employees. 



9759 



-138- 

Malce application for a hee.ring on and approval of your agreement. 

THE APFL I CATION SHOUL D 33 AC3C)i.:?MI ED BY A LL TIIE HEPRBSBlITATIOl^ DATA MP 
Tl-ZE Aaia3i.i3 i: T . W^ APPLICATIC^ mST PSriHlTSLY ST.A.TE TH3HE IS 1.0 
APPHGV3D AG;:i:EI .:EaT. CH i:0 YOUS iaiGV<L3i")GB MY APPLICATION P05 APPaOVAL 
OF Al^I ACtR£ 3...31TT , COVEaiUG- TH E SAI.JE IlID USTHY OR ?\RT T:.:EHB0F IN TI-I3 SAi/iE 
R3&I0IT Oil F.^ .^lT T"':a.dEG3. This is to prevent overlapping of regions for 
the sane worlc. Loth the application and the agreement should he 
notarized. 

The agreement must cover the work or part of the work included in 
a division or subdivision of the Construction Industi-y. The division 
or subdivision iKis'b hsve an approved Cliapter Code before collective 
bargaining -uader the Chapter Code coji be done. 

Chapters approved to May 19, 1934, are as follows: 

Chapter II - General Contractors' Division. 

(This Chapter provides for Chapter II A, Building 
Contractors Subdiv x'.^ons ; Oiapter II 3, Heavy 
Constraction and Railroad Contractors Subdivi- 
sion; and Chapter II C, Highway Contractors 
Subdivision. None of these three subdivisions 
has been approved. ) 

Chapter III - Painting, P:.perh.9jiging p.nd. Decorating 
Division. 

. Gnapter IV - Elevator M^inufacturing Division. 

Giapter V - Cement Gun Contracting Division. 

Chapter VI - Electrical Contracting Division. 

Chapter VII - Roofing and Slieet Lletcl Contracting 
Division. 

Chapter VIII- Mason Contractors Division. 

Chapter IX - Tile Contracting Division. 

Chapter X - Plumbing Contracting Division. 

Other chapters are in the course of preparation and it is ex- 
pected will be approved in the very near future. 



9759 



-193- 

HE Q>J I SEi 'iE2T T S 
Tlie following raast 'oe prLVided- 

1. Four (4) copies of tlie letlar sigjied by "both Parties to the 
agreement inalcing ppolicatio'n for hearing on and approval of the agree- 
ment. This letter must .also show the name and address of the national 
association menticned in suh-paragrrph D of paragraph 2 of Major Berry' s 
memorandum and tne statement regarding other agreements in the same 
area. 

2. Seven (?) copies of the agreement (one (l) signed original). 

3. Seven (7) certified copies of the Constitution and By-Laws 
(if organizationc; are sponsoring) of each of the parties to the agree- 
ment. 

4. Seven (?) notarized copies of the authorization of the com- 
mittee or individual to act for each party to the agreem.ent. If this 
is provided in the Constitution or By-Laws, copy the section and have 
it notarized. 

5. Seven (7) copios of the representation data. If complete in- 
formation is not available, tne information availaole may be supple- 
mented by estimates. 

6. A statement setting forth your reasons for bounding the region 
as you do. 

7. After the date and place of the .^earing have been set by the 
Administrator and notice of hearing issued, you should immediately ad- 
vertise in the lojal papers with ge"ieral circalation in the region 
giving the pertinent data of the notice of clearing. Copies of these 
advertisements should be furnished to Division Z, with proper showing 
when they were published and other pertinent infoniiation. All known 
interested parties should be directly notified. This may be accomplish- 
ed by giving Division S their names and addresses when you forward your 
application or you may notify them direct. 



APPLICATION POR APPROVAL OP RESICIIAL 

AGRBEI/iZET ESTABLISIIINa 3TAI\^DARDS AS 

TO HOURS 'OF LABOR, PATES OF PAY, AND 

OTHER GONDITICNS OF ElffLOYiviEl'IT 



Employees and employers in the region hereinpfter described, 

gaged ( Copy the definitio n or ap plicable part 

thereof from the pertinent Cliapter) 

and within the Code of Fair Competition for the_ 



(Wame of the Div iijion) Division of the Constructioi 



9759 



-200- 

Industry, through their duly selected representatives, submit herewith 
an Agreement entered into hy said representatives on behalf of said 
employers and employees. 

Said Agreement establishes standards of hours of labor, rates of 
pay and other conditions of employment neces^.ary to effectuate the policy 
of Title I of the ilatipnal Industrial P.eccVery Act, under and .pursuant 
to Section 1 of Article III, Chapter I of said Code, and subsection (b) 
of Section 7 of the National Industrial Hecovery Act in said region. 

Pursuant to said section of said Chapter I, and of said Act, and 
for the purpose of having; said standards as detei-mined by said Agreement 
apply to all operations of said Division in said region as defined there- 
in, application is respectfully made for the approval of said Agreement 
and for su.:?a proper hearing and notice as may be necessary to obtain 
such approval. 

Said Agreement affects and covers the region of . 

( 4.C curat sly describe the r egion) 



The conditions '/vithin such regj.on are such that uniform standards may 
properly be made therefor. 

The representatives of the employees were chosen by 

(T^Iamfi of fssociation or pssccia.tions) 



(a) truly representative association( ?) of {Tame of type(5) of 

worlcman) v/it-iin said region. 

The representatives of the employerB were selected by 

(Name of f.ss ciC iat icn or as sjcia tions) 



(a) truly representative association( s) of employers of 

(I'lams 01 type(s) of W GrlaT.an) ^within the said region. 

Said members of the Division in said region are complying, in all 
respects, with paragraphs 1 and 2 of subsection (a) of Section 7 of the 
National Industrial Recovery Act. 

Said Agreement was made by and through the bona fide collective 
bargaining of the respective repre'^:entatives of said employees and em- 
ployers. 

Said employees or employers or their. representatives will show at 
any hep.ring called in connection with the foregcing sixcn compliance 
with the provisions of the ijational Industrial Recovery Act, of the 
Code of Fair Competition for the Construction Industry, and any perti- 
nent chapter tiaereof which has been approved, as may be required in 
order to obtain the approval of the "President to, said Agreement. 

Tliere is no approved Agreement, or tc oxrv knowledge any applica- 
tion for approval of an Agreement, coverin.^ the same Division or part 
thereof of the Construction Industry in the same region or part thereof. 

The name and address of tne national associations related directly 



9759 



with this Collectiva Bargainirit^ Agree-ient are 

aiid 



SLIrLOYSaS ASSCCiATI'K' ME-LIYIUS A33CCI.ITIC1 



A3 ^S3LiEITg 



(Tills Agreement should be kept as simple as possible, and while the out- 
line is only sugfiestei, a close following of the outline will expedite 
approval of your Agreement. The form is based on an Agreement endorsed 
by the mason contrav". tors and brickl.'iyors in "New York. IT SMCvLD 3E CCK - 

sidejlsd as a 2.'-"- ^''r.- -JT ::~T43L:s.:irs cejitaiit sTAZoyDs waiqii may be 
FuaThE n ]>::;. _;__ _,_ ; , ; _ ._ ^ah cpl.^bc tiv/ SAASAiKirs outside tjs ggdb . 

This EUiiTh;:. : ^__^__^_,L_z JJ3T 3E .:T I SaST A3 ST i^INGEKT A3 T^HS i&3ESnElT.) 



COLLECTIVE BAa.lAl]\Il"G .-.CZSLiENT 

BET.;iiISi: 

i'lEi/IBExiS OF TJIE DITISION; ( Name of t h e division) 

DIVIcIOK CE THE C0I:I3TKT'JTIC:i, I'JDUSTLY AIJD 

TAEI i? (Lane of type ' r ]___ of_j;! c^lTmaJil EKPL C YEE 3 

IN T^"E 3EG-i:L OE (u-^' scribe y\e 



regicn ver;) briefly) 

TiiEitEAS Title I, Section 7 (o) of the National Industrial Seccvery 
Act and the Code of Fair Couipetition for the Construction Industry pro- 
vide' for agreements to be approved by the President, providing for 
standards of hours, wages and other conditions of employment, such agres 
raents to be made by truly representative groups of employers and em- 
ployees; and, 

'"irUEHEAS the ^ (Name of employer association or 

associations) 



are (is a) truly representative association( s) of employers of 

(name of type(s) of worlanan) in the Hegion Hereinafter define 

and, 

■filEISAS the ( Name of em-loye es association or 

associations ) 



9759 



-202- 



are (is a) truly representative association( ?) of 



er.ioloyees in tJie Region here- 



inafter defined; aiid, 

■7;-:EREAS such truly representative groups of emoloyers and employees 
in tlie Region below defined, having complied with all the necessary pro- 
visions relating to sucn agreements provided in such Act and Code, now 
desire to enter into such, an Agreement .and to obtain the approval of 
the President thereto in order that the st,aiidards of hours, wages, and 
other Condi tiDns of emplcyraent shall bind all employers who are members 
of the Division as hereafter defined and their (name of ty:oe(s^ of 

workman) employees and no others in the Region hereinafter 

defined; and, 

.7II3REA3 such st>andards provided in such Agreement are necessary to 
effectuate the policy of Title I of the National Industrial Recovery Act 
in said Region; 

now, t::er3?gre, this agreel^itt tithes ^et:: 

That in consideration cf the premises, and of the mutual agreements 
nerein contained, and in order to accomplish the objects and purposes 
hereinabove set fortli, the parties hereto agree each with each other and 
with all the others as follows: 

(All of the above shcvad be included) 

ARTICLE I - DEPI^IIT ICI'S - 

Section 1. liember in ths Region . The term "member in the Region" 
as used herein raecjis any member of the Division -s hereinafter defined 
engaged in any phase or undertaking to perfon'n any function of a member 
of the Division in tlie Region hereinafter defined. 

Section 2. ICeinher of the Division . The term "member of tJie Divi- 
sion" includes any individual or form of orgjmization -r enterprise en- 
gaged in any pliase or undertai:ing to perform any functions of the 

("Jame of the Division) Division. 

Section 3. (l^ame cf the Division) Division . The ter m ■' (ivTame of the 

Division)" or "tnis Division" as used lerein means 

(Copy th e d efi nition or applicab le part f rom the 



per tinent Chap ter) 



Section 4. (jTa.ne of tygs of ."."orkman). "(Na me of type 

of vrorkman)" m eans any employee working as a (name of type of worlcman ) 

(1) v/ho has served at least () years as an apprentice on work as 

covered by the definition of the (name of division) 

Division or ('2) who is qualified by an examination to do said work. 

(if more than one type of workm,an is covered, there sh:uld be a separate 
definition for each. As an exaaiple: under the Roofing and SHieet Metal 
Contracting Division - roofers, sheet metal vrorkers and common laborers 
could be included, or there could be separate agreements for each. The 
above form of definition is only suggested.) 

9759 



Section 5. Region . The Region in ttMcIi this ^\greenent is effec- 
tive is ( accurately de scri l.o the re£;ion) . 

;u:ticle ii - hours 

Section 1. Hours . IJo ( name of t:^,nje(s) of workman) shall 

V70rk or "be permitted to \7ork in excess of ( ) hoiirs in BXi^r one (l) 

\7eek, ( ) hoiirs in any twenty-four (24) houi's period, or ( ) days 

in any seven (?) da,y period. 

Section 2. Shi f t s . (if it is desirable, provide for hours on 
shifts here.) 

Section 3. Eo jida ?;-s. I^o (nane of t:^,n3e(s) of v o rl^an) shall 
work or he permitted to vTork on Saturdays (if consistent with Section l) , 
Sundays, New Year's Day. Washington's Birthday, Decoration Dvy, Indepen- 
dence Lay, Ln,hor Day, Election 'Dey, Thenucsgiving Dry, or Christmas Day, 
except as provided in Sections' 4 and 6 hereof. 

Section 4. E xcept inrs. (Ha ng of t^n3e(s) of wo r lnnan) may 
work on the days .(or po,rts of dr^ys) e".cepT;ed in Section o hereof or out- 
side regular hours on emergency work :hat cannot "be dons during regular 
hours with safety or \7ithout r-'jrious incor.vonierce to others. Memhers 

in the Region and (n.-ime of tyoe( ^:; of w o rkman ) must ohtain 

written permission from their respective associations, if any, for each 
such instance. Foihing in this section shall ne'^Tiit any employee work- 
ing or heing peruioted i.o work in ej-.cuss of the Lo-orly, daily or weekly 
maxima provided in Section 1 hereof. 

Section 5. Z:.r olo>Tn 3 nt "b?-- Othe rs, llo memher in the Region shall 
kno\7ingly permit a^i y jr.scie of t"T-'C '( £i) of worlj n an) to work and no 

(name of t3rpe(s) of \70rlG-:an) sliall vrjrk for any time T;hich, when 

added to the time spent at work for another memher of the Division or men- 
hers of the Division, or otherwise, exceeds the hotu-ly, daily or weekly 
maxima permitted herein. 

Section 6. Em ergenc ies. The nrovisions of the "oreceding section of 
this ^irticle are not a^-^plicalole to cases involving danger to life or 
■nroDerty. 

-iRTICLE III - I7aGES 

Section 1. 'Tare s . Th^ rate of wages for (n ane of t,-'n3e(s) of 
workman) shall he _( $ ) per hour for euplo^'Pient during regu- 
lar hours. (If different rates of wa^^es a:'e to he provided because a 
different rate for shop and field \/orl:' is desired, or for other reasons, 
it should he incorporated here.) 

Section 2. Shifts , (if provision is made for shift hours in I'jrti- 
cle II and if pa^J- is different from Section 1 hereof, provide r?te here.) 

Section 5. Over tine. .J.l overti-.ie shall he at times the 

rate for reg-'jlar hji^rs. Overtime means any time spent working over 



( ) hours in any twenty-four (24) hour period or outside regular hours, 
ajid also any work performed on days or paits of days excepted in Section 3, 



9759 



-204^ 
Article II, hereof." 

Section 4. Fayment . (a) All wages due shall oe payable in lawful 
currency enclosed in envelopes showing employee's nai:ne, hours worked, 
and amoiuit due. (If desirable, make pi'ovision for pajTnent by check, to 
the effect that employing member in the Region may maice payment by 
negotiable check payable on demand at par, that mer_ber in the Region 
issuing such checks shall provide ree.sonable facilities for cashing such 
checks at face value without charge or discount to employee, and that 
the check shall show the hours worked.) 

(b) lages shall be due and payahle during v/orking hours on (day) 
and not later tha n (ho ur) for work done up to (hour) of the preced- 

in g (day), T..i. Should Oiai'l) or (day) b e one of the days noted in 

Article II, Secticn 3, hereof, wages shall be due and payable on (day) 
or (day) , respectively, as the case iTiay be, not later tha n (hour) 
for work done up to (hour) of the precedin g (day) . 

(c) If a (name of type ' s) of workman) is laid off, upon 

Ms request all accrued v/ages shall be due and payable four (4) banking 
hours after a request for payment thereof is made to his employer. 



ARTICLE IV - CONDITIC'FS 0? ErgLOYlvHSNT 

Section 1. Safety . (St-ite rules for safety. Each different rule 
should be lettered (a), (b), etc.) 

Section 2. Contracti ng. No member in the Region shall directly or 
indirectly let solely tae labor services required by any contract of 
such member, except wnere the standards for such labor services shall 
not be less than the standards nerein provided. 

Section S. Tools . Each (name of ty p e(s) of work man) 



shall provide himself with a kit of tools consisting of (describe 

tools) . 

Section 4. :/iember Performing .Vork . Any meanber in the Region sha.ll 
be subject to the maximum hourly limitations provided in this Agreement 
in the performance by him of manual labor or mechanical operations. 

Section 5. Rebates , i/iembers in the Region, (name of tyi3e(s) 

of workman) or their agents, shall not accept or give, directly 

or indirectly, any rebates on wages. 

Section 6. Laws . No provision of this Agreement shall supersede 
any State or Federal law which imposes more stringent requirements as 
to the standards of hours of labor, rates of pay, and other conditions 
of employment provided by this Agreement. 

ARTICLE V - B ARGAINING- (inclusion Mandatory) , 

(Name of type(s) of vrorlcrnan) shall have the riglit to 

organize and bargain collectively throug.1 representatives of their own 
choosing and shall be free from the interference, restraint or coercion 



of tlieir employers or their -gents, in tie desisnation of such re'ore- 
sentatives or in sexf-orgaxiizaticn or in otxier concerted activities for 
the purpose of collective har,_:aining or other mutual aid or protection; 

and no (na me o f typo(s) of workman) and no one 

seeking emplo.]/ment shall "be rern-dreu as a condition of einplojinent to 
join any company union or to refrain from joining, organizing or assist- 
ing a labor orgaiiizatijn ^f his own choosing; and members of the Region 
siiall comply wit.i the mazimuia hours of labor, minimitiTi rates of pay, and 
other conditions of employment, approved or prescribed by the President. 

AETICLB VI - PjS5IDE^TIAL_KWEH 
( Inclusi on Mandp.to ry) 

This agreement and pJl the provisions thereof aro expressly made 
subject to the right of the Presiden-:, in accordance with the provisions 
of subsection (b) of Section 10 of the Act, from tine to time to cancel 
or modify any order, appr-val , license, rule or regoilation issued under 
Title I of the Act and specifically, but without limitation, to the 
right of the President to cancel or modify his approval of this Agree- 
ment, or any conditions i.aposed by him upon such approval. 

ARTICLE VII - lii-'iDI'^ICATlGi: (Inclusion 

I,iandatory) 

The provisions of this Agreement, except as to provisions required 
by tile Act, raay be modified or the basis of experience or change in 
circuinstances, suc.i modification t: be baced upr n application to tlie 
President, and such notice and .aearing as he shall specify and to be- 
come effective on ais approval. 

AHTICLI] VIII - 7IGLATICi:3 

Any complaints of violations of tx.is Agreement s/iall be subject 
to investigation by such Board or .Boards as are established by the 
Ac3ministrator for t. .at pn.rpo'^e for tne Division defined herein pursuant 
to the provisions of Section 1, Article III of the Code of Pair Competi- 
tion for the Cons trLi-Ctirn Industry. 

AHTICLE IX - FEiaOD 0,^' AaPEa..EHT 

Section 1. This Agreement shall become binding upon the signa- 
tories hereto and teir principals tno second Monday after the 
President has approved such AgreemenL as provided by said Act and Code. 
Tiiereupon t.ve standards of hours of labor, wages, PJid otlier conditions 
of employment xierein contained shall affect and aoply to all members in 

the Hegion and th.eir (name of typ e(s) of worlonan) ■ 

em.ployee3 as provided in said Act or Cede and the order of approval. 

Section 2. Tliis Agreement shftll tenninate on (date) 



or on the date the (lyi ame of the P i vision) Division of the 

Construction Industry becomes ineffective, whichever is sooner. 



9759 



"20 6r 



!'ir. O'Conrell 
Aioril 3, 1935. 

TO: iir. ". II. Hrrrinan 

SII3J1]CT: '4uestioj;s '""hich lirve p.risi:!: in con.Tectloi rith re,5ionrl 
r,'a:3e c_ Tre Binent s . 

In res;Tonse to -'■our vei'b"! recuest throiA-:;h J ^r. Creoitor, I list 
belor^ the -isrinci-orl ruertions 'Yiicii hce -".ri-er ir connection lith re- 
gional v'cge a-^i-eenents ■■xooi: '■"licli r -lolicy determination voulo. be de- 
si rpble: 

lie-ore cnnt^tioa 



1. lli-t is "adeoarte" represe-.trtion? 

To definition o*^ t.iis oue^jtion lirB ever been rttempted 
so far as I kno". There is on incre--^ vinj_-: tenrienc^' to ass-ume 
that a bare najorit^,^ is sv^fficient. Cn the other hand, I'r. 
Richberg is reoorted to hrve sric ( sone tine r^';o) that for 
r.-^reementc urder section 7 (b) there shovilr". be an "over- 
uhelming" m-'^Jorit'^. Gertainl"-, since these a.;;;reenents often 
go into much more det-il tnar coces and ^et higher strnd.-rds 
of hours rnd '"••".~es, ther-'e is reason to ur^e thrt a Irr^ier 
majorit"/ is cesirrdole than in the co'^g of codes, ,■ nd in the 
cpse of code? -^e sou'-j-Lt 55 2/3 -. 

2. Shoulc the reo^drements o" re Drenentrtion distinr^:uish betveen 
vrrirtions in ter:'ito'r'; 

Tor ex.- nple, '"e receive , 'r3ftr;ej:tE coverin.^ co''ii:ties; 
even sometiues nuch lrr,--;er -'ve''-. T'le"'" therefore cover Doth 
urbcn and rural territories. Zxistinj.- hours and "'.^c-ges me.y 
vav/ sub-^tap-tirll-'- as bet'reen urbr'n :nd rurrl territories. 
In determining '■'hat is oroner representation, should there 
be adeouate re-;:iresentatxon fron each territor-^ or need the 
.reouirement of reoresentftion be met onl^' as to the rrea as 
a v'hole. 

3. Should the reouircments of re jrerentrtion cistin.'ruish between 
associrtior members and non-arsociation members? 

Tlae nucleus of re-ore sen tat ion in almost every crse. 
is rn rssociation of employers rr.:''. an association (lonion) 
of enplovess. Sver;,'- agreement also affects employers and 
81.1^)1 o,3''ees not members of the a!";ociation. Should representa- 
tion be established sepai-atel'-' for the association rjnd the 
non-a-sociotion members, or ma-'- representation be determined 
for the territor-;'- as a rmole 'Ithout distin.;z,uishinf?: betv.'een 
the association aiid non-members? 
9759 



■ -207- 

4. TThere, (r.s in -DPintii^r) 1"-^3 code covers r.ll work by building 
and 'lome osiers not oevloriac-a bv ■-•e.Tianent em''ilo'"-e3s, cr.n tn agreement 
purport to cover ?,uch persons if the;' are :iot re^oresen ted? 

The painting code covers all ppinting operrtions by 
building and hoirie owners, including, presumably, also far- 
mers and tenants, unless fsnGh^ork is "oerformed by them- 
selves or permsjient emplo-'^ees. At least one agreement has 
sought to bind such persons rithout showing of representation. 

Ap 'orentj ces 

5. Should each enolo-rer of industry,'- be entitled to one apprentice 
irrespective of tiie m\r^io-':-T of joarne/-men erroloyed? 

A numbe-':- of a.^reements have includec sach a -orovision 
rs this: "Z"'er"^ emioloyer ma?" hr.ve one aprirentice for each 
five journe-r.en or major fr/'ction thereof." The effect is 
that if an e. i-'lo^'-er has tiiree journeymen he maj?- have one ao- 
prentice; if he has less than three he cm have no apprentice. 
Is this not discriminators against the small employer? 

6. Is it proper to lace a maximum limit on the num.ber of apprenti- 



A mjjnber of a:-;reeme.its incoroorate some such provision 
as this: "Urch em-oloyer ma3'- have one p.pprentice for everj?- 
five journe'-p.en provided that in no event shall he em'oloy 
m.orc than fi^e .-^-porentices. " Is tnis ciscriminatory rgainst 
the larger er.-.lover? 

7. Is it proo?r to plrce an uuper age limit on eligibility for 
apprenticeship? 

Limy a,gree;nents have orovided tnat no one shall be 
emmloved as an cp'orentico who is over 21 vears of cge. Is 
this discrimli " torr agrinst men over 21 who are thus denied 
(in the particulp.r territox-y, at least) the opportunity to 
3.earn the trade? 

Hrndica'oped '.Torkers 

8. Same ouet-tion ar KO. 5 above. 

9. Should an sgreemisnt be "oermitted to set a minimum wage for 
handicapped workers? 

E:;ecutive Order S605-F, placing certain responsibilities 
in respect of han'-acappef. workurs upon the Deprrbment of La- 
bor, appear", to nullify siich a provision. 

10. May oermiss:on in \riting from e, comrriittee be reouired as a. 
•--«or:dition precedent to v-ork outside of 'orescribed hours? 



9759 



-208- 

Liar.-'- r,5reementr I'oroid ^'or!: o;". S\ir,d'i.ys c'\nd holidays, 
but permit it in exce-otion.-^.l cp.'-es if conse:ited to in rrit- 
ing ty a loc^.!' committee represonto.tive of both, employers 
end employees. The cons-'Jimer civiser hrs freouertly ob- 
jected to Fuch reqaireraent, thouf^h r,.ot o'oposin^ a require- 
ment for notice of intention to so '"'ork. 

11. Is it proper to reciiiire a findiriv-j of violatioi: by i'.'-i.A. o,s a 
condition precedent to -prosecution for violation of the agreement? 

The fourth -oaragra-oh o" section '6, Article II, of the 
attached foriii of a^^^resment forbids .rosecution for working out- 
side of prescribed, hours vjiless the i'.3.A. first finds that 
such violation occurred. The labor adviser has freauentl''^ 
objecteo to this reouirement, o.lleanj that it su5.'~est o,nd 
encourages delr:'- rnd defeat of erforcenent. 

12. j;?'^ the prohibition or; en-olove"<, from permitting omolovees to 
T'ork i'or t'^o or :"!0?'e cmo].0"'"ei"s in erce'^^:, o" the prescribed hoars npro;oer- 
1-r be Quali-fied b-'- the ''ord "loorrin^l-^'-"? 

This ■:)rovision is section 4, -'■rticle II of the atta.ched 
form. The labor adviser consistentlv objects to the use of 
the ''orrT "'Tno"in."ly. " Thr; form follows over model code provi- 
sion. 

Obher Conditions of Smp'o-rment 

13. Is the f^ri'et'^'- o:nC health clause suf^'icient as pro'josed in the 
attacxied form (Article lY, section 1)? 

14. Are sprr"' g^ni operations recognized as sufficiently^ unjurio^is 
to reouire specific -provisions (in painting raid paioerhanging agreements) 
r.'ith respect to ' af ety and nealth anc c i "f srentials in hours and vages? 

15. Should txie o-^ohibition rgri-rt :^isiaissal of em-jlo3'-ees for mak- 
ing complaints or givin-: evicence al';o forbid deraotion? 

The labor adviser has consistentl;.^ urged insertion of 
the T.'ords "demote or other'ise discriminate agpinst" a.fter 
the v/ork "dismiss" in s:^ction 4, Article IV. 

16. Should there oe mand;itory posting of agreements? 

17. i-cy the agreement oermit "oayment of uages daring other than 
VTorkinrT hours? 



Alvin Drovn 
A3:AG 

9759 



-209- 

APP SITDIX M 

LABOR iJ.ID THE CODIFIED 

COJGTSUCTION IimUSTRY 

U1©£S TIIE 'MA 



Prepared in Collaboration with 

Solomon Barkin 

2y the B-ii.ild.ing Trades Department 

A. F. of L* 



9759 



210 

LABOR AND THE CODIFIED CONSTRUCTION INDUSTRY 

The basic code for the Construction Industry provided the framework 
for the operation of the entire industry. Its specific conditions were more 
detailedly defined in the various supplements to the basic code. In last year's 
report, there was described the main outlines of labor's effort to convert the 
employers' code into one more acceptable to labor. The employers sought to 
dominate the proceedings and dictate the terms of the code. Organized labor's 
entire strength was placed behind the effort to force a reconsideration of the 
code in November, 1933. The President of the United States had finally to 
be appealed to directly in order to assure consideration of labor's proposals. 
The final code eliminated the more flagrant abuses and established in part 
the principal of mutual determination both as to negotiations and as to ad- 
ministration of the code. 

THE NEGOTIATIONS OF THE SUPPLEMENTARY CODES TO TBTO CON- 
STRUCTION INDUSTRY: 

With the precedent established in the basic code negotiations, the negotia- 
tions in the supplementary codes followed a pattern on the whole more satis- 
factory to labor. The NRA officials in charge of the code had been com- 
pletely reorganized under the guidance of Division Administrator George 
Berry. A more receptive attitude prevailed. Unions were no longer con- 
sidered suspiciously. Labor in the construction industry was not to be 
treated or identified with the less outstanding articulate labor organizations 
in other industries. Instead, union labor in this industry was taken directly 
into the confidence of the Administration. In addition to the staff representa- 
tive and labor adviser designated by the Labor Advisory Board, a special 
committee, representative of employers and employees, consisting of Mr. 
S. F. Voorhees and the undersigned, was constituted to participate in the con- 
ferences leading to the final negotiations, assist in the determination of pro- 
cedure, review the final drafts of codes and otherwise render advice. The 
presence of these representatives helped to assure labor's recognition. 
Finally the long standing understanding between the individual international 
unions and the respective employers' associations in the contracting divisions 
of the industry promoted true collective bargaining. While many of the 
final supplementary codes did not represent the product of true collective 
bargaining, and could only be represented as employers' codes, both because 
they contained little relating to labor in the industry and because they were 
not sponsored or endorsed by the labor group, nevertheless, a greater degree 
of mutual understanding prevailed than had existed in the early negotiations 
of the basic code. 

The actual labor provisions of the code may be divided into major and 
minor. In the former class are the provisions establishing the minimum terms 
of employment for the predominant labor group. In the minor class are 
those provisions which relate to the incidental groups of employees in the 
industry and general protective and social legislation adopted in the code for 
the welfare of the workers. In the latter class are the reg^ulations relating 
to watchmen, emergency work, child labor, money payment, safety and 
health, posting, dismissal for complaints, regulation of hours of working 
employers and contracting regulation. While the individual international 



9T59 



211 

unions generally were concerned about the determination of the major 
provisions, the staff of the Labor Advisory Board did the yeoman's duty in 
assisting the international union and in assuring the Inclusion of as many 
protective clauses as the situation pei-mitted. Together these representatives 
performed admirably to assure the greatest gains for labor. 

The negotiations of the supplementary codes, assumed, on the whole, the 
aspects of direct collective bargaining. In such industries as plumbing, 
plastering and lathing, and elevator, unobstructed understandings developed 
between the unions and the contractors' organization. In fact, in the former 
two industries, the employers and unions acted as a imit in their demands 
and succeeded despite every discouragement in maintaining their agree- 
ments and enacting them in the code. The electrical workers attained this 
state of free bargaining only after the employers engaging union labor had 
asserted themselves and assured that there would be direct negotiations in 
this industry. In the case of the heating and piping code, the Plumbers' 
Union had to overcome an original unsatisfactory wage proposal but soon 
convinced the Code Committee and the Association of the justice of their 
demands. However, this early difficulty somewhat overhung the relations 
of employers and the union in the development of the code provisions on 
Code Authority representation for labor of which there was none. The 
trowel trades other than the plastering were represented by the Bricklayers' 
Organization. A S2-hour week was established in the terrazzo and mosaic 
contracting industry. 

In the painting industry, the absence of skilled minima rates and the dis- 
couragement of such rates left little to discuss between the representatives 
of the contractor and unions. It was the inability of the organized labor 
group to negotiate skilled labor rates which left little but the most rudi- 
mentary protection devices to be taken care of in the negotiations This 
was frequently reviewed by the labor adviser and staff representative of 
the Labor Advisory Board. 

The granite cutters' union participated in what was NRA's most 
dramatic effort to insert a uniform national minimum for granite cutters 
It was the anti-union representatives from the South on the Code Committee 
who held at bay the effort to stabilize this industry. The reluctance of Ad- 
ministration officials to assist in bringing this recalcitrant into line doomed 
one year's effort to a fruitless end. 

In the general contractors and wood flooring code negotiations one of 
the staff members of the Labor Advisory Board represented labor admirably 
m compellmg significant changes in labor provisions. 

On the whole, the experiences in the negotiations of the construction 
codes differed radically from that prevailing for the run of industries in NRA. 
In the construction industry organized labor furnished articulate spokesmen 
who were versed in the manners of the contractors, steeped in the problem 
of industrial relations, acquainted with the pattern of control, and with the 
techniques of governmental control were alive to the need of militant and 
aggressive action, unafraid to speak boldly their attitude, and insistent upon 
the rights of labor to participate and share in the determination of their own 
conditions. Supported as they were at aU times with whole groups of em- 
ployers sympathetic with their purposes, their position was definitely 

9759 



212 



recognized. With this array of personal preparation, organized strength and 
determination and support in the ranks of the employers, organized labor 
brought a veritable array of incontestable argument and proof for .its posi- 
tion. No longer were the silvery words of the opponent to remain uncon- 
tested. The experience of the past and the facts of Uie present were pre- 
sented in support of labor's position. 

THE UNCODIFIED CONSTRUCTION CODE: 
STRUCTURAl. STEEL & IKON FABRICATING INDUSTRY 

But not all of the branches of the construction industry were codified. 
Among these uncodified divisions is that for carpenters. No supplementary 
code for this group was ever approved, largely because of the difficulty of 
obtaining an adequately representative employers' organization. The gen- 
eral contractor is so frequently identified with carpentry work that the 
General Contractors' Code was considered sufficient. Some of the minor 
divisions which were without special codes were metal buck, well drilling, pipe 
line, and weather stripping. 

Special mention must be made of the fact that the architects and en- 
gineers were not given codes largely because of NRA's reluctance to codify 
professionals and because of the extreme trade practice demands made by 
the industry. The Labor Advisory Board did not intercede in favor of such 
code because of the employers' refusal to write labor provisions into their code 
commensurate with the needs of such skilled employees as architects and en- 
gineers. The workers in the Industry would have actually remained uncodified 
even had the employers' proposals been approved. 

It is, however, the Structural Steel and Iron iFabricating Industry which 
presents the most dramatic story in NRA, of the struggle between organized 
labor and open-shop employers. Next to the contest over the basic Con- 
struction Code, it best illustrates the fact that NRA became the stage 
for the reconsideration of many labor struggles prevailing in Industrial 
America. The heroic effort of the International Association of Bridge, 
Structural and Ornamental Iron Workers requires that this conflict be re- 
lated in some detail. 

The Iron Workers Union early realized that the NRA offered "an oppor- 
tunity for the establishment of union rates of pay and standards of employ- 
ment throughout the Iron and Steel Fabricating Industry." Plans were, 
therefore, developed to assure a complete presentation of Labor's case before 
the Administration. The agreement with the Structural Steel and Bridge 
Erectors' Association on July 10, 1933, extending the existing agreement to 
building and other forms of iron and steel erection constituted the first move 
to align favorable employer groups behind the union. After much delay, the 
proposed code of the American Institute of Steel Construction came to 
public hearing on October 30, 1933. The code as presented embraced both the 
fabrication and erection of steel despite the numerous efforts made prior to 
the hearing to separate the two and place the erection activities under the 
Construction Code. Mr. P. J. Morrin and his representatives could not achieve 
this result despite the many appeals to the administrative officers. The 
separation of the two industries was labor's outstanding demand throughout 
the course of the negotiations. 

At the public hearing, P. J. Morrin, General President of the Inter- 

9tS9 



213 



national Association, carried the burden of labor's argument supported by 
William Green and Frank P. Walsh, counsel of the Union. In support of the 
recommendation for the separation of erection from the fabricating industry, 
labor explained to the Administration that the association of the two indus- 
tries would constitute the "final, supreme and indefensible effort of the 
Steel Industry's conspiracy to destroy independent erectors and unionized iron 
workers." The monopoly of the U. S. Steel and Bethlehem would be frozen 
and guaranteed by law. Opposition to it would be impossible. In support of 
this conclusion, they related the history of the steel companies' antagonism to 
organized labor both in the fabricating and erection of structural steel. The 
findings of the New York Lockwood Committee inquiry of 1922 were pre- 
sented as evidence of the truth of the charges. This committee concluded that 
an intensive effort had been instituted by the steel manufacturers to break 
organized labor and to award all work to non-union erectors. The struggle in 
New York City in 1930 was described. There the open-shop erectors broke 
faith with the union after they had signed an agreements in order to ob- 
tain the work on the Empire State Building. This general condition, it 
was charged, led "independent steel erecting concerns to employ only non- 
union men or to persuade union men to reduce their rates of pay so that the 
independent concerns can successfully bid against the erecting concerns of the 
Steel Manufacturing Industry." Further evidence of the desire to "con- 
solidate or freeze all the gains of their previous monopolistic practices" was 
found in the administrative provisions of the code which vested complete 
control in the hands of the Institute. 

Labor recommended a separate code for the erection of structural steel to 
be based on that proposed by the Structural Steel and Bridge Erectors' As- 
sociation. This code was the result of collective bargaining between the 
Internation Union and the Association and complied with the intent of 
Section 7 (b) of the Act. As a result, it more nearly expressed the funda- 
mental purposes of the Act than did the Institute's code. It incorporated the 
union agreement and prescribed its terms as the minimum conditions of 
employment. 

The Institute's representatives took sharp issue with this demand for 
segregation. They contended that the business of fabricating and erecting 
structural steel is a separate and distinct division of the general steel indus- 
try. In support of this position, they contended that in the "more intricate 
and costly structures, the purchaser in his own interest insists on letting the 
work imder a single contract covering both fabrication and erection." In 
fact, they estimated that about 43 per cent of the total erection (1928-1931) 
was performed by fabricators, while only 16 per cent was erected by in- 
dependent erectors, 11 per cent by general contractors and 30 per cent by 
owners or by others with their own forces. Such segregation, as was sug- 
gested by labor, was protested as inevitably leading to the disruption of the 
industry. 

The issue was clearly defined at the public hearing and in the sub- 
sequent exchange of memoranda. Labor saw in the adoption of a single code 
for the fabrication and erection of structural steel a definite conspiracy of 
non-union forces seeking to perpetuate fabricators' monopoly and to 
strengthen the open shop elements within the industry. The Institute sought 



9759 



214 



to continue the predominant control developed by the fabricators over the 
erection of structural steel. 

The adminisitration, after consideration of the merits of the respective 
parties, soon came to favor the adoption of separate codes and negotiated 
with the industry to that end. In fact, the same demand for segregation 
was made in the case of the Reinforcing Materials Fabricating Industry 
Code. After a several hours' conference on November 7, 1933, under the 
chairmanship of Dr. Leo Wolman, Chairman of the Labor Advisory Board, 
this industry agreed to modify its provisions by inserting that "the hours, 
wages, and conditions of labor provided in the separate erection code which 
shall hereafter be approved shall apply to the erection activities of fabricators 
who are engaged in the erection of reinforcing materials." The Labor Ad- 
visory Board at the same time inserted the demand for "a separate erection 
code." The administration, in line with its current policy, insisted upon the 
elimination of all wage protection for the skilled crafts in the code. As a 
result, the revised draft of November 24, 1934, had no provision for minimum 
wages for skilled workers. Many other objections were raised by the Labor 
Advisory Board to the code as it came from public hearing but all issues 
were subordinated to the major controversy of whether the fabrication and 
erection should be segregated. 

The Administration undertook further negotiations to obtain some 
agreement with the Industry code committee, but they were of no avail. 
All three of the Advisory Boards of NRA disapproved of the Institute's posi- 
tion and recommended segregation of erection from fabrication. Major 
Berry and his Deputy Administrators found that further negotiations were 
futile. As a result, the code when approved on July 11, 1934, was modified 
by an Executive Order which removed many of its more objectionable fea- 
tures. The main provisions of the Executive Order insofar as labor was con- 
cerned were: (a) erection work was placed under the Construction Code; 
(b) provision for a 40-hour week and 8-hour day; (c) an overtime rate of 
one and one- third the normal hourly rate for emergency overtime; (d) the 
establishment of a maximum 6-day week; (e) the provision of a .?20 per 
week minimum for drafting employees; (f) a new equitable adjustment clause 
to assure protection to skilled and semi-skilled employees; (g) protection of 
employees against dismissal for complaints; (h) the raising of the minimum 
common labor rates to 40 cents in the North and 34 cents in the South. 
Labor hailed the order as a "great victory" and "as the most courageous and 
constructive action that Ijas yet been taken by NRA." 

The Institute, however, rejected the code and the directors declined to 
sit as the governing body in administering it. They pronounced that the>' 
were not bound by the code and had been relieved of their obligations imder 
the re-employment agreement. They addressed General Johnson and reiterated 
their objections. To offset this position, the International Union and the in- 
dependent erectors flooded the administration with assurance of support in 
this fight with the fabricators. At this critical juncture, the Industrial Ad- 
visory Board intervened. They sought to remove some of the sting of the 
Executive Order and obtain industry's consent to some compromise. So com- 
plete a labor victory was not viewed pleasantly by industry. At the instance 
of the Industrial Advisory Board, a "friendly stay" was issued and the ef- 
fective day of the code was postponed from July 22nd, for fifteen days until 



D750 



c 



215 



August 6, 1934. This action reopened the entire controversy. The fight was 
on again and never was permanently settled. Prolonged negotiations were 
again undertakien; the code never became effective. 

The Industrial Advisory Board which had promised speedy resolution of 
the problem found its problems insurmountable. With the withdrawal of the 
early steadfastness and the reorganization of the administration heads of 
NRA, the snarl became even more complex. NRA sought a compromise solution 
in a situation in which neither party would yield. As its representative, the In- 
dustrial Advisory Board attempted to negotiate a compromise on a basis which 
would leave erection in the structural steel code and by which a "bridge com- 
mittee" would govern the relations between the Structural Steel and Construc- 
tion Industries. Neither the Labor Advisory Board or the Consumers Advisory 
Board were consulted in these negotiations. The industry representatives 
finally agreed to accept most, of the proposed labor changes contained in the 
Executive Order but insisted upon leaving erection in the code. When dte- 
cussions proceeded to the definition of powers of a "joint committee," no 
agreement could be obtained. Instead, the code committee representing the 
Institute reasserted its demand for its own code. 

While these negotiations were carried on, the stay issued on August 6, 
1934, lapsed and was not renewed. It was only on October 9 that it was re- 
applied and made retroactive to August 16, 1934. This action had taken 
place despite the purported signature of an Order which approved the code, 
by General Johnson on August 17. Following this second stay, the code 
began to wander about the various NRA agencies. In the first place, it was 
considered by the National Industrial Recovery Board, and later referred to 
the Advisory Council. This group, consisting of representatives of the three 
advisory boards, Consumers, Labor and Industrial, reported back its findings 
on December 21, 1934. With respect to erection, it recommended that "pro- 
visions concerning erection would be along the lines of those of the Con- 
struction Code in regard to wages, hours, trade practices, area wage agree- 
ments, and the setting up of a joint labor industry board for jurisdictional and 
other disputes. A bridge in the form of a co-ordinating committee would be 
provided between the Construction Code and whatever code it is decided 
is to govern the Erection Industry through which joint problems may be 
solved." It, however, definitely recommended that the Board "appoint a 
highly competent person to negotiate with the interested groups in the hope 
of working out a satisfactory code." It further recommended that "all 
groups interested be placed on notice that NRA will expect a solution within 
90 days and that if such solution is not forthcoming, the NRA will take such 
steps on its own initiative as may be necessary to protect the public In- 
terest." In this discussion, the Labor Advisory Board advocated the com- 
plete segregation of the two industries, while the Industrial Advisory Board 
reversed itself and favored a single code with a single administration govern- 
ing fabrication and erection. The Board turned the problem of further 
negotiations over to Mr. D. M. Nelson. 

The latter attempted to reopen the entire hearing upon the subject, 
but was resisted by the International Union. Finally, the problem came be- 
fore the National Industrial Recovery Board on February 9, 1936. Or- 
ganized labor urged that the code be made immediately effective. Particular 
emphasis was placed upon the evidence of growing intimidation of independent 



9759 



216 



erectors friendly to organized labor and to union workers. But the results 
of this meeting were negligible. MIA had forced itself into a position in 
which it could not act unless it obtained consent of the Institute. A futile ef- 
fort was made on March 13, 1935, to send another draft of the code among 
the Advisory Boards, but since it was substantially similar to the agree- 
ments obtained from the Institute soon after the issuance of the Executive 
Order, the Labor Advisory Board disapproved the code. No final action was 
taken. 

NRA at about this time became paralyzed. New legislation was being 
considered and, the test before the Supreme Court became imminent. A 
final effort to get the Board to take action on April 5th proved futile. At 
this meeting, Mr. Morrin declared that the Board had "either to impose the 
codes despite the doubtful attitude of your legal advisers as to whether 
such action will be sustained by the court, or to drop altogether the hope of 
formulating codes for these two basic industries." Labor was extremely im- 
patient with the dilatory action and indicated that it would "carry the mat- 
ter to Congress itself." No action but conference with the Institute resulted 
from these meetings. 

Industry had in the meantime become even more self-confident and less 
willing to yield. NRA had become more inert, less courageous and more 
compromising. The opposition to NRA in Congress and among big business 
had undermined its ability to act. Industry's continued penetration into the 
positions of key importance had stultified the possibilities of drastic action. 
The compromising predisposition on the part of the directing heads had 
ruled out any acton but the most routine. Conference agreements become 
the sole basis of action. But such a procedure in negotiations of the code for 
the Structural Iron and Steel Fabricating Industry could only end in a 
stale-mate if heed were given to labor, or in any industry code, if labor were 
overlooked. 

It must be said that the strong and tenacious struggle by and con- 
tinuous pressure of the union, the sympathetic handling of the code by 
Division Administrator George Berry, and the alert defense by the labor rep- 
resentatives in the Administration, prevented the latter calamity. 

The history of the negotiations of the Structural Iron and Steel Fabri- 
cating Code must go down in history as one of the greatest blots on NRA. 
It had arrived in July, 1934, at a deliberate conclusion fully aware of its con- 
sequences, but it had not the courage to see that its convictions were carried 
out. Would it possibly have reversed itself if labor had not prevented it? 
Much of labor's criticism of NRA is illustrated by the weakness of NRA in 
handling of this industry. The personnel of NRA, except for a few isolated 
examples, had not the talent nor the disposition to come to studied conclu- 
sions particularly in reference to labor matters, and when such findings 
were in labor's favor and contrary to industry's wishes, nor seldom the 
courage to strike boldly and do justice and enact their findings in an im- 
partial judicial manner irrespective of where "the chips may fall." The 
consequence of this condition was that a code for Structural Steel and Iron 
Fabrication or Erection Industry was never made effective. The workers had 
remained unprotected, except possibly by the President's Re-employment 
Agreement. 



9759 



f; 



217 



A sharp contrast in experience is presented by the story of the negoti- 
ations of the construction supplementary codes and the structural steel and 
iron fabricating industry. Gains under the NRA, when substantial, were ob- 
tained generally after a determined concerted effort by labor in Washington 
supported by an effective and telling organization. Industry did not con- 
cede except after extreme pressure. The labor strategy had to vary in ac- 
cordance with its strength, its history, and the class of employers it faced 
and tlie particular administration officials with whom it dealt. 

The achievement of a satisfactory code is only the preliminary stage in 
the effo.rt to protect and advance labor interests, as well as assure the at- 
tainment of the Administration's purposes. The document becomes significant 
when translated into practice. The basic construction code was approved 
on January 31, 1934, and became effective on March 2, 1934. In all, some 24 
chapters were approved. By the end of August, 1934, practically all of the 
chapters had become effective. The last, governing the stone setting division, 
became effective on January 30, 1935. It is with the more outstanding of 
labor's experiences under these codes that we will now deal. 

THE DEFENSE OF THE CONSTRUCTION CODE 

(a) Land Development and Home Building Code 

The defense of labor's interest required not only great vigilance in the 
direct negotiations of codes but in the protection of the codes which had been 
approved. In two different connections, organized labor was required to in- 
tercede to assure the maintenance of the agreement. The first was the case 
of the contest with the Land Developers and Home Building Division of the 
National Association of Real Estate Boards. 

Through the machinations of the above organizations a stay was issued on 
March 31, 1934, which exempted this group from all but the labor pro- 
visions of the Construction Code. A public hearing was held on July 14, 
1934, to consider a code for this industry which would have replaced even the 
labor provisions of the Construction Code in all phases of the construction 
of one- and two-family houses. Both labor and employers in the construction 
industry entered vigorous protests against this action. These were, however, 
only coldly received by the Deputy Administrator in charge of the code 
who could not be made to understand that the construction industry includes 
all construction and not merely construction performed by contractors. 

In a vigorous brief, the undersigned declared against the code primarily 
because it was unnecessary, and secondly, because it would create more 
problems than it would solve. Home-building, I contended, is not separable 
from the other types of construction, and described the homebuilders as in- 
cluding many outstanding speculative builders who had brought such dis- 
honor and had threatened the standards of the industry. In the discussion 
which followed, one of the sponsors confessed that their sole purpose of ob- 
taining a separate code was to undermine labor conditions. The stout suj)- 
port of the Construction Code Authority assisted in developing a formidable 
array of evidence indicating that not only was there no such industry as 
was represented, but that the confusion which would result from the pro- 
posed segregation would make for difficulties of administration, unfair com- 



9759 



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petition, excessive speculative building, and bring back the defects which the 
Construction Code was seeking to obviate. 

The close vigilance of the staff representative of the Labor Advisory 
Board and the representatives of organized labor and the co-operation of the 
Construction Industry Code Authority helped to stop this proposed code 
despite all the pressure placed upon the Administration by the real estate 
interests, by inadequately informed persons who sought the revival of the 
construction industry even at labor's cost, and by the open shop interests in 
and outside the construction industry. The Labor Advisory Board, on No- 
vember 9, 1934, declared emphatically that it was "opposed to a separate 
code for the Land Development and Home Building Industry which properly 
belongs under the Construction Industry Code." The National Industrial 
Recovery Board considered this code several times and became increasingly 
convinced of its undesirability as is attested by the continued delay of its 
approval and the growing lack of sympathy for it within the Administration. 
A final determination was being contemplated and the evidence that it was 
to be negative is very impressive. 

(b) The Jurisdiction of the Oonstniction Industry 

No less troublesome were the continuous efforts of many groups to 
nibble away on the jurisdiction of the construction industry code. Various 
groups aside from the so-called home builders attempted to exempt themselves 
from this code. It was particularly true of manufacturers who installed 
equipment and employers in other industries who did not contract out their 
construction work. 

The master construction code covered all types of construction irrespec- 
tive of the type of person who might perform the job. However, the specific 
scope of the supplementary code superseded the basic code for that particular 
work. As finally adopted, the following codes were completely functional 
codes in that all persons who performed the work of that industry were sub- 
ject to its provisions: Kalamein and Marble. Several more, three in all, had 
conditional functional definitions; that is, only limited classes of persons were 
exempt specifically from a basic all-inclusive definition. In this second 
class were: Painting, Paperhanging and Decorating, with only an exemption 
for home owners and householders, and building owner or tenant when per- 
forming work for themselves and using their own permanent employees; 
Electrical with the above exemption and several additional specific ones*; 
Heating, Piping and Air Conditioning Industry with an exemption to the 
manufacturers' own service or to the supervisors sent by any manufacturers 
for installation of their own products. The rest of the codes were of a more 
limited scope. Some were outright contractual, such as Elevator Manufactur- 
ing, Cement Gun, Roofing and Sheet Metal, Mason, Tile, Wood Floor, Resilient 
Flooring, Insulation. Terrazzo and Mosaic, Plastering and Lathing. Granite 
and Stone Setting Industries. The Plumbing and Terrazzo and Mosaic Codes 
included all work done for profit. 

The most aggressive opponents of the Construction Codes were the manu- 



*One for Public Utilities rendering their reg-ular service; Telephone and 
Telegraph Companies in their regular operations; Manufacturers of fire alarm 
and signalling apparatus; and assembling and servicing of manufacturers' 
equipment. 



9759 



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215 



facturers and public utilities who sought to have themselves exempt from 
the Construction Code. Immediately following the approval of the Construc- 
ti<m Code, representatives of these manufacturers presented petitions for ex- 
emption to NRA. The Construction Code Authority negotiated with them but 
could arrive at no mutual satisfactory terms. At first, the manufacturers 
would only concede that they would observe the labor provisions in the Con- 
struction Code when "construction work is being carried on upon the same 
premises simultaneously with the work of the manufacturer installer" for such 
employees as are hired locally. Finally they were willing to observe the labor 
provisions of the Construction Code for all their men except for those whom 
they sent from their permanent crews. They did not wish to subscribe to the 
Construction Code in any other respect. In the Heating, Piping and Air Con- 
ditioning Industry this conflict was particularly serious. Almost all of the 
automatic exemptions granted after the approval of the code, 120 In number, 
were given to manufacturing concerns. The Order of Approval in the code 
itself prescribed a public hearing which took place on November 8, 1934. 
Here again the manufacturers sought exemption and hid behind the cloak of. 
their codes. But no determination has been made on this issue. It may be 
indicated that some 93 codes overlapped vpith the Construction Industry in 
that they made definite provisions for installations. In the case of one such 
code, the Railway Signal Appliances, the issue caJne to a head after a strike 
in New York City on the Eighth Avenue Subway construction job. Many 
hearings were held at which the various interested unions were present and 
presented their views. Though the dispute was settled in New York City in 
favor of the Electrical Workers, NRA determined against the jurisdiction of 
the construction code in this particular type of installation (signal systems). 

The issue also appeared in connection with construction operations in 
manufacturing industries. An agreement was developed by the Code Author- 
ity and the Cotton Textile Industry declaring that "repair and maintenance 
items and minor items of replacement, alteration and additions" when per- 
formed by the manufacturers' own regular employees would be exempt from 
the Construction Code, but all other persons would be governed by the latter. 
However, organized labor protested this agreeinent. It believed that the 
agreements were too vague and extensive, and that even permement crews 
doing maintenance work should be paid construction wages, and that ade- 
quate representation for labor should be included in the jurisdictional board. 
This problem had become seriously agitated in NRA during its last days. 

Whereas, these efforts by outside industries were directed toward restrict- 
ing the scope of the construction industry, various divisions within the indus- 
try sought to extend their jurisdiction. The National Construction Planning 
and Adjustment Board declared in favor of tiie adoption of functional defini- 
tions. Two divisions of the industry sought very actively to achieve such an 
extension. There was the Mason Industry. The Bricklayers' Union «md the 
contractors of this industry moved toward this end. A public hearing was 
held on March 22, 1935, to consider this problem. Much progress was made 
in the post code negotiations toward obtaining a fimctional d^nition for this 
branch of the industry. The opposition came chiefly from general contractors, 
manufacturers and the public utilities. In the plastering industry a similar 
move was made in the direction of extending the definition to make it func- 



9759 



220 

tional in character. Howe/er, this proposal only came up for consideration in 
May of 1935 so that no public hearing was caUed on this subject. 

Organized labor was insistent upon the application of a definition which 
would maintain labor's rights at these crafts irrespective of the place where 
they were performed. The Construction Industry limited its interest primarily 
to those types of overlap where contractors could successfully compete for 
work. The manufacturers and employers in other industries who had been 
accustomed to paying lower wages and granting less favorable labor condi- 
tions favored and fought for the retention of construction and installation 
work under their respective divisions. The Administrative officials under the 
impetus of industrially minded persons and their general coolness to the labor 
conditions developed in the Construction Industry looked favorably upon the 
arguments of the manufacturers and employers in other industries. In this 
situation labor, through its union representatives and the Labor Advisory 
Board, had to be always on the alert to assure that its interests were pro- 
tected. In a situation in which the active agents of the administration were 
the code authorities composed solely of employers, this task required endless 
attention. The defense was strong, but the offense equally strong. Action, 
therefore, did not characterize NRA's activities at this front. 

The Southern Wage Problem 

The Construction Code was also subject to attack from many elements 
within the industry. The uniform national minimum of 40 cents for un- 
skilled labor served as the spearhead of the Southern discontent with the 
code. 

The Construction Code was one of the very few in NRA which did not 
recognize the South as a section distinct from ithe rest of the country. 
Southern manufacturers and employers had succeeded in obtaining definite 
wage differentials in other codes and looked to the Construction Code as a 
challenge to this right. Delegation after delegation was sent from the South- 
ern States both by employers in the Construction Industry and other indus- 
tries to have the Administration renounce this national uniform minimum 
wage. 

The Code was no sooner effected than the South demanded a 30 cents 
minimum. In fact the Governor of one State established a lower rate than 
prescribed in the Code in order to circumvent its provisions. By May 15, 
1934, the application for exemption for a 30 cent minimum was being 
circulated in NRA. The Labor Advisory Board and organized labor voted 
against this petition. Strong resistance to the petition came from the or- 
ganized labor groups in the Southern States for which the contractors desired 
an exemption. 

The employers' case was founded on the contention that the traditional 
rate was lower in the South and that the unskilled labor in other industries 
was interchangeable vnth the unskilled construction labor and consequently 
unrest would be inspired if the rates were not identically low. A special 
point was made of the fact that compliance was threatened, if it had not 
been actually broikien by this provision. However, representatives of labor 
pointed out that the actual increase in the cost of construction and building 
by the maintenance of a 40 cent minimum was so insignificant, amounting 



0759 



221 

to about one or one-half per cent of the total cost, that the position of the 
contractors was untenable. Furthermore, attention was brought to the fact 
that most of the pressure did not come from elements within the industry, 
but from Southern employers generally. When this subject was brought to 
the National Construction and Planning Board the chairman visited these 
States and reviewed the situation at first hand. Labor representatives on 
the Board succeeded, when this matter was discussed, in having disapproved 
a resolution in favor of the exemption. But despite the resistance these con- 
tractors applied to the Construction Code Authority for support at the meet- 
ing in December, 1934. The Construction Code Authority approved the 30 
cent minimum on the ground that there is no competitive relation between 
the Southern wage and wages in other regions, and that the 40 cent minimum 
represented a 100 per cent increase in the wage of unskilled labor. When 
this matter was again taiklen up with the P. and A. Board, the subject was 
again left undetermined. In the meantime numerous efforts were made 
within NRA to have some Administrative Order approved. At first it was 
urged that the 30 cent minimum be established and that rates of 75 cents per 
hour for unskilled workers in cities of 100,000 population or over and 65 
cents for smaller cities be approved. But this was supplanted by a proposal 
that the 30 cent minimimi be applicable to employers who "agreed in writing 
with his regular skilled employees to pay aU skUled workers employed by 
him at a specifically named rate." But this proposal was disapproved, both 
by the Labor Advisory Board and the Industrial Advisory Board. The 
former contended that not only was the rate impractical but tnat no effort at 
exemption should be made until adequate enforcement had been attempted. 
The Industrial Advisory Board took the position that it would not approve 
skilled wage rates. Despite the efforts on the part of various adminisitrative 
officials to find some way of granting this exemption, labor's attitude had 
succeeded in delaying, as well as possible completely disapproving action in 
this direction. Labor was successful in defending the only significant uni- 
form national minimum in NRA codes against Southern wage slavery and 
negro discrimination. 

Wage Scale For SkiUed Workers 

Labor's outstanding demands in the course of the negotiations were 
equal participation in administration, the thirty-hour week and definite 
minimum wages for skiled employees. In this section we shall discuss the 
latter issue. 

As a result of the code negotiations, only four of the supplementary 
codes contained minimum wage provisions for skilled workers. They were 
the electrical; plumbing; heating, piping and air conditioning;- and plastering 
and lathing codes. Many others would have had similar provisions but the 
administrative officers discouraged and even openly fought their inclusion. 
It was only in the case of the industries where both contractors and the union 
were adamant about their inclusion that they were approved, frequently 
in the face of the opposition of advisory boards within the NRA. 

The agitation by organized labor in the painting industry led to a public 
hearing for consideration of the need of a minimum for skUled labor. How- 
ever, no agreement could be reached since the proposals by the contractors set 

9759 



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222 

the minima between 60 cents and |1.00 per hour varying with different 
sizes of cities, while the vmion Insisted upon the P. W. A. minimum scale of 
$1.00, $1.10 and ^1.20. In the masonry division an agreement in favor of 
skilled wage scale identical with the provisions prescribed by P. W. A. was 
reached by the Bricklayers' Union with the Code Authority in October, 1934. 
It was pointed out that wages for skilled mechanics had, in some areas, fallen 
as low as 41 cents per hour. This amendment was scheduled for a hearing 
but it was cancelled in favor of one devoted exclusively to the consideration 
of the definition of the industry. Some progress had been made to protect 
by wage minima in codes the wage scales of the skilled labor. No doubt if 
the above two amendments had been expeditiously handled, many of the other 
supplementary codes would have adopted similar provisions. Moreover, a 
much larger grroup of codes would have had sMlled wage rates if the direct 
administrative officials handling the code and NRA, as a whole, would have 
been more sympathetic to the inclusion of such wage rates. 

The success of the provision establishing wage minima for the skilled 
workers varied among the four codes containing such provisions. Prac- 
tically no protests were heard against the 75 cent minimum for skilled 
electrical workers. Although this rate was considerably less than that pre- 
vailing among electricians generally, it had a significant stabilizing influ- 
ence upon the wage rates of workers in electric repair shops. The enforce- 
ment of the skilled rates for the plasterers and lathers presented practically 
no problem. Few requests for exemption were heard. One received from 
the district outside of Wilmington for the State of Delaware was inspired 
largely by dissident parties to the plumbing and heating codes. It was pre- 
sented by joumejonen considered unqualified for real work. 

Most of the difficulty encountered appeared in the enforcement of the 
P.W.A. minima in the plumbing and heating, piping and air conditioning in- 
dustries. In these two cases, the protests came largely from New England 
and many smaller communities. Among automatic exemptions granted 
within ten days after the approval of their code were many concerns which 
had protested the wage scale. As a result of the pressure from New 
England, a public hearing was held in Boston, Mass., on January 25, 1935, 
at which the entire problem was discussed. In addition to the representatives 
of the Labor Advisory Board, there were present representatives of the 
plumbers' union and the code authority. Labor contended that not only was 
the group unrepresentative because of its small number of contractors, but 
they also employed few journeymen. Likewise the net effect upon total 
construction was shown to be so insignificant that it could in no way effect 
volume. The employee proxies were frequently obtained by "all the ele- 
ments of intimidation, coercion and other activities prohibited by Section 
7(a)." In support of these petitions were aligned many who had per- 
sistently resisted organized labor. The hearing resulted in the termination 
of the stays and exemptions to members of the industry throughout New 
England. But the pressure within NiRA from persons unsympathetic to the 
maintenance of the skilled wage rates in the construction industry was so 
strong that action was taiken to grant lower minimum rates to the various 
backward and rural areas. In sections where substantial labor organiza- 
tion prevailed it was possible to resist successfully the tampering with the 



9759 



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223 

skilled minima rates. So much did the Administration feel moved to yield to 
this pressure that plans were being formulated for more. general recon- 
sideration of the minima, and for the possibUity of setting up special cata- 
gories of districts which could be exempt by a general order. In the plumbmg 
code 12 exemptions were actually granted;- two affected the entire States 
of New Hampshire and Maine, three rural sections of Pennsylvama, while 
the other affected sparsely settled districts in the States of New York, 
Massachusetts, West Virginia, Connecticut, Wisconsin. Nebraska and 
Wyoming. In the heating, piping and air conditioning industry, the ex- 
emptions were four in all and covered areas exempt under the plumbmg 
code The request for an exemption for unskilled labor from Selma County, 
Alabama, was denied. In these exemptions, the minimum for rural areas 
was set at 90 cents while the rates for more populated areas was $1.0a 
or $1.10 per hour. In organized areas, the code minimum of $1.20 was 
retained. In opposition to these exemptions, organized labor and the Labor 
Advisory Board recommended that all changes should result from col- 
lective bargaining agreements and furthermore, that adequate recognition 
must be given to the fact that mechanics from the city usually serviced the 
rural areas when work other than that of the handyman's character was to 
be performed. Special effort was made to prove that the signatures of 
workers to these petitions were largely worthless because of the lack of 
collective bargaining power in these districts. Repeated protests were 
heard from workers who had been compelled to sign petitions. It was this 
continuous pressure from rural and economically depressed areas which made 
difficult the general apphcation of the wage minima for skilled workers. 
In view of the laxity of general NRA compliance, and the uninspiring 
assistance rendered to organized labor and trade associations, the experience 
with this section of the codes, which were, after all, the only ones really 
to affect the workers' status immediately and directly, did much to develop 
a disgruntlement with NRA in the ranks of labor. Administrative officials 
could not be made to recognize that every such improvement as establish- 
ing a wage minimum means pinching some one and that these protests were 
to be expected. Only an ineffective or inconsequential code which could 
have no positive effect would not draw crticism from employers. NRA of- 
ficialdom had not come to this understanding. They preferred fewer com- 
plaints from employers even at the price of codes which would not contribute 
to the fulfillment of the purposes of the act. 

The wage minimum for skilled employees in industries consisting almost 
exclusively of skilled workers was imperative, both to protect the worker 
and to give meaning to the term "fair competition." "me quickness witli 
which these minima could be applied must be contrasted with the inadequacy, 
because of slowness, of the area agreements. The troulales which appeared 
were completefy localized and arose from peculiar backward conditions. Such 
difficulties were to be expected in an effort to establish national mi ni mu m 
wage scales. A notable effort was made and it proved successful. Com- 
pliance was generally adequate. However, the delinquents were not prose- 
cuted and frequently abetted by administration officiala who were not in 
sjrmpathy with the construction code. This occurred particularly in the 
States of Maine and Delaware. The skilled wage minim a In the codes c<mi- 
stituted a historic contribution toward stabilizing wage scales in the Indus- 

9759 



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224 

try, both witiiin individual areas and throughout the country. It destroyed, 
for' the crafts affected, the chaotic variation of wage rates so characteristic 
of the less organized sections of the industry. 

Area Agreements 

The compromise on the demands of employers and organized labor found 
in the code provided for the inclusion of akiilled wage minima in the supple- 
mentary codes where employers would agree to saone, and area agreements. 
These local agreements on labor conditions were to permit labor to attain 
its ends not by national regulation but by local agreements. They were free 
to bargain for specific wage minima for skilled workers and a thirty- 
hour-week. 

Among its origpinal suggestions, labor had proposed that the prevailing 
labor agreement or imderstanding should determine the wage in the locality. 
Instead the area agreement procedure was adopted. It contemplated that 
representative groups of employers and employees would arrive at agree- 
ments through collective bargaining which would. seek to embrace all groups 
in the community, both union and non-union. These agreements, when ap- 
proved, were to be the local codes and determine minimum conditions of em- 
ployment. It was not contemplated that they supplant, but rather supplement, 
the union trade agreements in the area. They were to apply to all and in 
that way at least assure minimima conditions of competition. The enforce- 
ment was to be entrusted largely to a bi-partisan board. 

While no doubt the area agreements have proven to be of considerable 
value where they came to be in existence, the number finally approved was 
only 48. In all, 282 agreements were submitted; the largest nimiber were 
received in the third quarter of 1934. Most of these covered the painting 
industry. Of the total received, some 127 had gone to public hearing. Of the 
48 approved agreements, 32 were for painters' division, 2 for the tile division, 
5 for the electrical division, 3 for the mason division, 3 for the plumbing 
division, 2 for the plastering division, and one for the carpenter division. 
The areas most completely covered were: The State of California with 
agreements for painting and plastering; New York City, agreements for 
mason and painting, and Philadelphia, agreements for painting and tile. 

Some fourteen of the total agreements established a shorter than 
forty-hour week, while none of them exceeded the forty-hour week maximum. 
Four of this number set a thirty-hour week. These agreements included 2 
painters (Cascade, Montana, and Cook County, Illinois) ; one electrical (Port- 
land, Oregon), and one plastering agreement (State of California). The 
thirty-five hour week agreements consisted of 9 painters' agreements and one 
plumbing agreement. The wages established in these agreements ranged 
from 60c to $1.33 for painters; from $1.00 to $1.50 for electricians; from 
$1.25 to $1.50 for masons; $1.12% to $1.50 for tile setters; $1.12y2 to $1.50 for 
plumbers; $1.00 to $1.25 for plasterers. The low wage rates in the painting 
industry resulted from the adoption of area agreements in several rural areas. 

A number of factors contributed toward maMng the area agreements 
procedure for stabilizing wage and hour conditions in specific areas less satis- 
factory than had been expected. Instead of the boon it had been hailed, 



9TGy 



225 

it came to inspire indifference largely because of the inability of the Ad- 
ministration to move expeditiously toward the approval of these agree- 
ments. Delay inspired discontent, disinterestedness, imdue criticism, and 
finally indifference. 

No doubt the most outstanding impediment in the way of greater 
progressing the adoption of the area agreement were the exacting de- 
mands of the Administration made on the sponsors with respect to repre- 
sentation. The standards employed by the Administration were so severe as 
to discourage many who had undertaken area agreements and slowed up 
their approval so considerably as to cool the interest of other areas. The 
demands of representation presented by the Administration were calculated 
on estimates of the probable number within the industry for which no ade- 
quate data were available. The need for the inclusion of many of the 
chiseling elements in the community in the original negotiations and the 
necessity of satisfying them put another damper upon the entire undertaking. 

While the largest proportion of the area agreements were sponsored 
by bona fide trade unions, employers in individual regions got up organiza- 
tions of both employers and employees in order to determine upon minimum 
labor conditions. Their motive was to establish minima for the purpose of 
effecting fair competition. But the negotiations which did take place could 
hardly assume the guise of collective bargaining, and the minimum rates were 
so low as to set unhealthy precedents. This practice was particularly 
prevalent in the painting industry. The establishment of these low rates dis- 
couraged the bona fide unions from submitting agreements. It likewise in- 
dicated the inadequacies of the area agreements in the construction in- 
dustry for rural regions where bona fide collective bargaining could not 
take. Instead, fly-by-night organizations were developed for this special 
purpose sponsored by the contractors. The Administration could not be 
easily shown the dangers of this precedent. They were interested in agree- 
ments as such, and frequently lost sight of the fact that these were to 
result from bona fide collective bargaining between employers and employees. 

The Administration did not undertake to sponsor the development of 
area agreements, nor guide the local sponsors in the collection of the 
necessary material nor in any way assist the process except through in- 
structions from Washington. The great cost of the gathering of the neces- 
sary material and information as well as the costliness of the negotiations 
discouraged many from entering upon this road. 

In many cases, the area agreements proved inadequate because the 
deflnitions of the basic code from which they were developed were con- 
tractual in character. In fact, it was the limited application of the mason 
and plastering area agreements which impelled the action toward amending 
these codes to embrace functional definitions. 

While the area agreements on the whole did maintain the wage scale 
prevailing in the community and in a few cases did raise these standards, 
the several cases, where the wage of the agreement was set at a lower 
level cast a black cloud upon the entire procedure. In many branches of the 
industry the presence of the non-union elements in the negotiations tended 
to strengfthen the insistence of the union employers upon breaking down em- 
ployment conditions which had existed for decades. 



9759 



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In a few cases, the area agreement was used as a means of breaking 
down the code minima, particularly in the pipe trades. This unwarranted 
use of the collective bargaining instrument further tended to develop an 
antagonism to the instrument as such. 

An agressive policy was required which Would have assured progress 
and facilitated the process. Simplification, of the demands was imperative. 
The obstacles in the way of the use of the area agreements made out of this 
great hope for stabilization in the construction industry a source of additional 
dissatisfaction with the N.R.A. The Administration recognized this fact 
during the closing days of the N.R.A. And in fact, took steps to remove 
many difficulties. It was contemplated that the Division Administrator in 
charge of the codes would have free hand toward removing the administrative 
difficulties which N.R.A. had itself developed in the way of the free use of 
these agreements. 

In the areas where the agreements were established, the stabilizing ef- 
fect was impressive. Organized labor and employers worked energetically 
to obtain universal compliance. The bi-partisan boards began to operate in 
a manner to assure judicious application of the agreements. The co-operation 
of employers and unions put at the command of the agreement the joint 
resources of these two groups. The areas in which agreements existed ap- 
proved and welcomed them. But the number with such agreements was few. 
Much more progress would have been made toward stabilizing conditions 
by placing skilled wage minima in the codes and supplementing them by 
local area agreements, as was done in the plastering and pipe trades, to 
define higher rates and more explicit local regulations governing employ- 
ment and compliance. 

Labor Costs and the Construction Industry 

The various attacks upon the construction code as well as the basis of 
much of the difficulty in the administration of the code was the antagon- 
ism to it which prevailed within the ranks of the officialdom of NRA. 
Fundamentally, the administrative agencies were manned by persons with 
the industrial point of view. They knew of the wage rates as they were in 
the manufacturing industries. They saw skUled labor paid as little as the 
semi-skilled workers in their industries. Consequently, they fell prey to the 
bugaboo of high labor costs preached by the financial interests. Organized 
labor at the very first public hearing declared that labor income must be 
increased and that the greatest sources for lowering the price of construction 
are the reduction of building materials prices and the removal of the high 
financial costs and the waste existing in the industry. 

During the one-year period of the administration of the code two formal 
replies had to be submitted on the same subject to the administrative officials. 
The staff of the Labor Advisory Board had continuously to rebuff these 
arguments. The replies served to stop the uncritical acceptance of the 
conclusions generally circulated, but the large turnover of personnel made 
it incumbent to undertake the educational process almost every three 
months. So deeply ingrained has the thought become, that it appears im- 
perative that the building trades unions present a complete elucidation to 
the public of this problem of the relation of labor wage rates to labor costs 
and to building costs. 



9^59 



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227 



The National Flanning and Adjastment Board 

Basic to the development of any govenunental machinery is acceptance 
of the agencies of government by the governed. Labor has continuously 
and vigorously protested the one-sided character of industrial organizations. 
At least, it has argued, the conditions of employment should result from the 
mutual determination by both the employers and the employees. Until labor 
realizes this demand it can hardly be expected that lal)or unrest will sub- 
side. Man desires to participate in the determination of his own destiny. 
Furthermore, labor has made it plain that so long as industrial decisions are 
made by management, it cannot accept any responsibility for its failuresu 
While it stays outside of the realm of these decisions, labor can only be a 
constructive critic. 

This concept of labor's part in our industrial order impelled it to de- 
mand recognition in the process of code negotiations of labor conditions. 
After considerable struggle, it attained this end to a moderate extent. To 
insure the continuance of this principle in the administration of the code 
labor sought equal representation in all administrative bodies. As a 
compromise several different agencies were established. In the first place 
there were the Code Authorities, the Construction Appeals Board and the 
Construction Planning and Adjustment Board. On this latter Board there 
was equal representation of employers and employees with an impartieil 
chairman in the person of Mr. Sullivan W. Jones. The Board was established 
on June 15, 1&34. 

The function of this board was very broadly formulated. It was charged 
with the responsibility for the planning and development of policies that 
embrace the broad spirit of co-operation and good will in the promotion 
of better relations between employers and employees in the industry and 
the furtherance of other matters of mutual employer and employee interest. 
It was conceived as the joint agency to handle the planning and adjust- 
ment of labor issues. Joint planning for the industry had not yet been 
created. But in an industry where labor cost is so significant, the agency 
dealing with labor relations could and would exercise a dominant influence. 

The only agency which was organized was the National Board. The 
code, however, looked forward to the establishment of Regional Boards. 
These, according to the amendment of May, 1935, were to consist of an 
equal number of members each from employer and employee groups and 
an impartial chairman who was to be named by the National Industrial 
Recovery Board from nominations made by the employer and employee 
representatives selected by the Board. 

The Board was directly charged with the handling of all applications 
for exemption from the 40-hour maximum provision in the code Eind it was 
empowered to grant permission to work 48 hours in any one week under 
certain specified conditions such as on remote and inaccessible projects 
where camps are necessary for housing or boarding of the majority of the 
labor employed, or on projects where sufficient qualified labor is not avail- 
able in the immediate vicinity of the work. 

Soon after considering these, the Board adopted as its directing 
though not binding policy, the rule that it will not grant exemptions after 
a contract is awarded unless conditions unforeseen at the time bids were 



9759 



I 



228 



tak«ii clearly support the case. Labor representatives actively reviewed 
these- applications and shared directly in the determination of the decision 
through its representation on the Executive Committee and later m routine 
cases as a member of a committee of two with the Chairman of the 
Board. 

During the life of the Board, some 76 applications were received which 
were acted upon. Of this number 40 were granted while 36 were denied. 
Among those approved were the construction of a railroad bridge in Ala- 
bama where a labor camp had to be built; the construction of a pipe line m 
San Joaquin Valley, and the building of a levee in Arkansas. Some of 
those denied were informed that additional workers could be employed, or 
that wage adjustments would meet the issue of attracting more persons, or 
that available persons could be obtained in the vicinity, and that employees 
were not housed in camps. This participation by labor assured that due 
consideration was given to the fundamental purpose of the Act; namely, re- 
employment. 

The Board interested itself in various other problems arising out of 
the administration of the code. In connection with the development of area 
agreements, it proposed that several divisions of the industry might be 
permitted to develop combined area agreements. This suggestion was later 
incorporated in a code amendment. It also sought means of facilitating 
and expediting the approval of area agreements. A recommendation was 
issued from its deliberations in favor of the revision of code definitions in 
favor of functional definitions. The open end clause in the Roofing and 
Sheet Metal Code provided that the Board may issue an exemption per- 
mitting forty-eight hours to kettlemen. This matter was presented at 
the Board meeting on November 9, 1934, and the application for permission 
to work kettlemen 48 hours was denied. In one of its resolutions it ex- 
horted the NRA to enforce compUance with the code. When NRA was 
under consideration for extension by Congress the Board resolved to endorse 
its continuance. In its effort to secure a greater wage stability within the 
industry, the Board released an appeal in December, 1934, urging the con- 
struction industry to renew "expired wage and hour agreements wherever 
they have existed." It appealed to the contractors and labor organizations 
where agreements had lapsed and who had "worked together in the past 
imder agreements to renew those agreements or negotiate new ones. By 
so doing, net only will they re-establish stabUity in the supporting case of 
the industry but also will expedite area agreements by furnishing the base 
from which to move forward." 

The outstanding contribution of the Board was in connection with de- 
velopment of a plan for the settlement of jurisdictional disputes. The 
President of the United States had suggested that the Board undertake 
a thorough study of trade jurisdictional disputes, causes and origins and 
methods for their prevention and amicable solution. After considerable 
study an agreement was reached and endorsed by all groups of unions 
within the construction industry. It provided that temporary adjustment on 
jurisdictional matters would be made by the Chairman and the President of 
the Building Trades Department of the A. F. of L. The permanent de- 
termination would be made by a Board of three to be selected by the 



D759 



229 



Planning and Adjustnaent Board. However, this agreement proved futile. 
No machinery was established by the Board because there was no agree- 
ment upon a labor representative upon the Committee for Temporary Ad- 
judications. 

The Board had shown great promise. Under the guidance of a careful 
policy of building securely, it was preparing itself to assume the role of a 
mentor, mediator and possibly arbitrator in industrial relations in the con- 
struction industry. It constituted a national organ which could lead the 
industry to stabilized industrial relations. With the disappearance of NRA, 
this organization of great promise ceased to exist and its loss is regretted 
by all who had believed in it possibilities. 

Conclusion 

Labor's experience under the construction code cannot be measured 
merely in terms of statistics or dollars and cents. A new experiment had 
been undertakien to forward the social usefulness of American industry. It 
had hardly gotten underway when its life was terminated. Social experi- 
ments of the magnitude represented by NRA cannot attain their goals 
overnight. They prescribe certain changes and must wean an entire popula- 
tion away from old standards. 

NRA represented in a definite sense the realization of many of labor's 
ambitions. It had fastened upon "the minds of the American population 
and upon management the idea that industry served a social function and 
could not conduct itself in an anti-social manner. For the first time stress 
was placed upon the fact that industry serves the community and is answer- 
able to it for its deeds. If modern management cannot so order itself that 
there would not be poverty amidst plenty, then the community, through the 
government, was to find some means of bringing such results about. The 
well-being of the masses of the people was at stake and not the blind 
adherence to shibboleths or to dogmas. If the technological and industrial 
developments of the country and the financial interests had made industry 
a mere slave to profit and indifferent to the lot of its workers, then the 
government was going to step in and correct these conditions. 

Unfortunately, the Administration was not manned with a personnel 
dedicated to these conclusions with the devotion and fearlessness as had 
motivated the original passing of the bill. These persons were cautious and 
still respected the old gods of industry. They still spoke in terms of im- 
mediate profit rather than the welfare of the workers. Few could under- 
stamd that the superstructures of investment and debt which industry had 
developed were unjustified and could make no real claim on national 
income. But they stiU persisted in thinking in the same terms as the em- 
ployers and of the balance sheet of a by-gone day. The national economic 
interests were overlooked in the haste to grapple with the picayunish prob- 
lems of the daily routine. In fact, one labor leader characterized the ad- 
ministrative personnel as consisting of clerks who merely received petitions 
for exemptions from the labor provisions. 

This general situation made for the long and courageous struggle of 
organized labor in the construction and structural steel and iron fabricating 



9759 



230 

industries. Labor had to teach the administrative officials the rudiments of 
the new philosophy of NiRA. It must be confessed that man^ had not 
learned the same even at the end. Many served the interests of industry 
exclusively and forgot the essential purposes of the Act ito create re- 
employment and purchasing power. 

The above handicaps stood in the way of the full achievement of the 
purposes of NRA. Codes were drafted which almost represented not even 
an imitation of control over labor conditions. They permitted exemption 
upon exemption from the basic terms. In fact, some codes exempted 
all of their employees from the maximum hour regulations by one device or 
another. The effect of NRA upon employment and labor's income was there- 
fore considerably minimized by the loose provisions of NRA codes. More 
rigid regulations which would not have permitted these loopholes would 
have assured greater re-employment. More stringent compliance enforce- ' 
ment would have made for generfil observance even of the loose provisions. 

Despite the above, NRA made substantial contributions both to labor and 
to the employers. It stopped the downward spiral of prices and wages. It 
impelled an upward movement in employment and labor income. Un- 
fortunately, it also protected the prices and collusion in many industries 
which partially offset the advantages which labor gained. It also stimulated 
labor organization among workers in a variety of industries. With sub- 
stantial nimibers of unions of workers, compliance with labor provision." 
was enforced by labor's economic strength. In the construction industry 
the workers suffered few wage cuts during the period. Rather wage rates 
either maintained their level or were Increased. In many areas sub- 
stantial reductions in the hours of employment took place. The thirty-hour 
Week had become an actuality in many areas. These examples have become 
the spearhead for the demand of a similar work week throughout the 
country, not only in the construction but also in other industries. Unions 
which had lapsed into inactivity were revived. 

The construction industry as a whole had recognized organized labor. 
The establishment of various administrative units permitted for the sharp 
declaration of the need for labor representation. In the administration 
within the NRA labor was definitely represented by the Labor Advisory 
Board and the special advisers who were called in to offer advice and guide 
the work of the staff representative. No move was made by the Ad- 
ministration without previous review by organized labor's representatives. 
On the Construction iPlanning and Adjustment Board, labor was equally rep- 
resented with management, and on the Plumbing Code Authority, organized 
labor had a definite quota of members. While on five other Code Authorities, 
labor imion leaders were designated as Administration non-voting members 
of the Code Authority and could participate in their proceedings and inform 
the Administration of their attitude on matters voted upon by ithe Code 
Authority. Furthermore, each of the area agreements provided for boards 
of equal number of labor and employers imder an Impartial chairman. The 
right of labor to participate as an equal in the determination of the condi- 
tions of employment was affirmed. Organized labor shouldered this re- 
sponsibility not only for its own membership but for all workers. The 
stabUization of these developments offered promise that in the future labor 



9759 



c 



231 



would share even more substantially in the development of policy for the 
construction industry. 

Only the start of the movement was made under the NRA. Its 
permanent effects are not entirely obvious. It Jiad introduced a new philos- 
ophy of social responsibility of industry and of labor and consumer repre- 
sentation in the deteimination of industrial policy. These principles were 
becoming increasingly accepted. It began such significant experiments as 
the area agreements, national minimum wages and the estabUahment of flat 
maximum hours of employment for all workers. Tlie gaJns of organized 
labor had become the law of the land. America was being educated to 
compliance with the provisions. Only unfortunately the end was too soon. 
Big business has been opposed to governmental intervention and has resisted 
the revival of NRA. One industiiaUst close to the J^A declared when the 
Schechter case decision was published: "Thank the Lord that our necks 
have been taikien out of the nooae of the national government. As for labor, 
we shall take care of them locally." 

The removal of the NRA has not solved the un;*mployment problem 
nor the status of labor in industry. Rather production has been increasing' 
but people are not beiufr re-employed as rapidly. Hours are being lengthened, 
mechanization has proceeded to unprecedented levels, and wages have been 
generally reduced. Industiy cannot be left as an irresponsible party im- 
answerable to the community and to labor. Organized labor must ask 
industry to justify its deeds and call it to task for its failings. Some or- 
ganization must be developed by the government to replace tJie NRA so 
that its purposes of re- employment, increasing labor's income and public 
review of industry's conduct may be more successfully achieved. 

During the past year we have been in even closer co-operation, due to 
the unusual difficulties confronting us, and in closing this report I desire 
to thank the members of the Executive Council and the Presidents of our 
affiliated International Unions, as well as all other Building Trades repre- 
sentatives, for their prompt response and kindly assistance whenever called 
upon. It is to be hoped that this convention will promote the welfare of 
the Building Trades Organizations composing it. 

Respectfully submitted, 

M. J. Mcdonough, 

President, Building Trades Dept., 
A. F. of L. 



9759 



APFEiroiX 0.0 . 

National hscovery adA'.inistration. 

liv'l'EDIATE RELEASE RELEASE NO. 819 

SEFTEI.BER 18, 1933. 

The text of Deputy Administrator K. M. Simpson's report to National 
Recovery Administrator Hugh S. Johnson on the Code of Pair Competition 
for the Bit-amincus Coal Industry is as follows: 

September 17, 1933. 
General Hugh S. Johnson 
Administrator 

National Recovery Administration 
Washington, D. C. 

Dear Sir: 

I present herewith for your consideration and recomm.endation to the 
President the Code of Fair Comjetition for the Bituminous Coal Industry. 

Efforts were under ray to secure the cooperation of the Bituminous 
Coal operators prior to and in anticipation of the passage of the National 
Industrial Recovery Act. 

The state of utter disorganization in the industry involving the 
prevalence of unfair competitive practices, particularly in the payment of 
low wages in order to permit of unreasonably low coal prices furnished a 
good example of the effects of unrestrained coriipetition in an industry 
capable of great ovei-production in relation to existing consumer demands. 
In numerous ways the Bituminous Coal Industry has furnished more convincing 
evidence of the need for the integrating force of the National Industrial 
Recovery Act than any other industry in the nation. 

The initial and immediate activity of the Adm.inistrator and the 
present writer after yoiur aprointment was an effort to bring about a 
greater co;)rdination and cooperation between the operators in the differ- 
ent sections of the country in this industry and largely in response to 
this effort there came into being the Northern Coal Control Association 
and the Smokeless Apjalachian Coal Association, representing almost all 
producers in the Appalachian coal area which produces approximately 10$ 
of the national Bituminous coal tonnage. These associations join in pre- 
senting a Code of Fair Competition, this being a remarkable exhibition of 
cooperation among coal producers who have been engaged for a generation in 
bitter competitive operations. Other associations in various regions pre- 
sented separate Codes as did certain groups of individual producers thus 
offered to the Administration the problem of harmonizing in some manner 
the divergent viev/s represented in some twenty-eight different Codes. 



9759 



-235- 

This industry' also presented the unique problem of one in which 
there was far-reaching organization of laoor on an industrial basis, the 
United Mine Workers of America having contracts with many operators in 
many fields and claiming organization of workers in many other fields 
where no contractiial relations existed. 



9759 



-2S4- 
Simpson's report Page 2. Release No. 819 

The difficulty of reconciling all the conflicting elements in this 
situation can hardly be over-err,phasi2-ed. During the progress of discussion 
follov'ing the public hearings representatives of the Appalachian Associa- 
tions requested the aid of the Administration is facilitating the negotia- 
tion of a contract between these associations and the United Mine Workers of 
America, and it was evident to the Administration that this step having 
been taken a successful conclusion to these negotiations was of the utmost 
importance in bringing about the submission of a code for the industry as 
a whole. 

In the detailed report which will be prepared for your consideration 
all the steps taken and the problems involved will be given more adequate 
consideration. At the present time in viev/ of the urgent need for the 
recommendation and approval of the code which was finally adopted and sub- 
mitted for approval on September 16 by representatives of approximately 55 
percent of the national tonnage, it is desirable to make recommendations 
only as to the following minor details: 

1. There is a provision in Article VII section 3 requiring each code 
authority to collect and combine any report and other information required 
under the National Industrial Recovery Act. This should be supplemented by 
a definite obligation imposed upon the industry to furnish to government 
agencies such statistical information as the administrator may deem neces- 
sary for the purposes recited in Section 3 -A of the National Industrial 
Recovery Act in the form of an Executive Order to be recomm.ended to the 
President. An appropriate provision will be drafted to cover these require- 
ments. 

2. In Article VII, Section 4, provision is made for establishing an 
Industrial board to consist of nine members designated by the several 
divisional code authorities and the six members of the divisional authori- 
ties who have been appointed' b;^ the President. It appears that the provi- 
sion ,-is written may unduly restrict the President in placing on the Indus- 
trial Bo^ird only his appointees to the divisional code authorities. 

Accordingly, it is recommended that as a condition of approval the 
President reserve the right to nnm.e not more than three members either in 
substitution for, or in addition to the six presidential appointees made 
members of the Industrial Board by the present provision of Section 4, of 
Article VII. 

3. Schedule A fixes basic minimum, r.-^tes for vr.rious districts and 
parts thereof leaving tne rates for certain producing areas to be either 
approved or prescribed 'oy the President prior to the effective date of the 
code. In view of progress made since the submission of the code in determ- 
ining those rates not fixed in scnedule A as siibmit ted, I am able to recom- 

9759 



ampson's Report Ipge 3. Release !'o. 819 



mend the revised 3cher!"ule A attached to this report, and desire to make 
it plain that no rrtes as fixed in Schedule A as sutmitted have "been 
changed . 

The code as recommended conrplies in all respects with the pertinent 
provisions of Title I of tne Act. Tne groups sutmitting the code im- 
pose no inearitable restrictions on admission to memoership therein and 
were truly representative of tne Bituminous Industry. 

The code as reco'^^i tended is not desiijned to promote m.onopolies or to 
elim.inate or oppress s^all enterprises and Till not operate to discrimin- 
ate against them, anc vill tend to effectuate the policy of Title I of 
the National Industrial Recovery Act. 

From evidence adduced durin.;; the hearing and all available inform- 
ation it is believed that this code as now proposed and revised repre- 
sents an effective, practical, equitable solution for this inaustry and 
its approval as herewith submitted is recommended. 

lie spect fully submitted, 

K. !■/. . Simpson 

Deputy Ad-mini strator 

Approved: 

Hugh S. Johnson 

Administrator. 



0750 



e 



-236- 



APPMPIX PP 

CODE OF FAIR COMPETITION 

for the 

BITUMINOUS COAL INDUSTRY 

as approved by 

PRESroENT ROOSEVELT 

on 

SEPTEMBER 18, 1933, 

INCORPORATING CONDITIONS OF 
EXECUTIVE ORDERS 

and the 

APPALACHIAN AGREEMENT 

Between Northern Coal Control Association 
and the Smokeless and Appalachian Coal 
Association; and the United Mine Workers 
of America. Signed Sept. 21, 1933. 

Also agreement with captive mines (Steel) 
Signed Sept. 29, 1933. 



Distributed by 

NATIONAL COAL ASSOCIATION 

Southern Building 

Washinoton, D. C. 



October 2, 1933. 



0759 



c 



-237- 

NATIONAL RECOVERY ADMINISTRATION 

The text of Depntj Administrator K. M. Simpson's report to National Recovery Administrator Hugh S. 
Johnson on the Code of Fair Competition for the Bitnminous Coal Industry is as follows: 

-September 17, 1933. 
General Hagh S. Joluuen 



Nadenal Recovery A 
Washington, D. C. 

Dear Sir: 

I present herewith for yoor consideration and recommendation to the President the Code of Fair Competition for the 
Bitaminons Coal Indnttry. 

Efforts were luder way to secure the cooperation of the Bitnminons Coal operators prior to and in anticipation of the 
passage of the National Industrial Recovery Act 

The state of ntter disorganization in the industry involving the prevalence of imfair competitive practices, particolarly 
in the payment of low wages in order to permit of tmreasonably low coal prices famished a good example of the effects of 
imrestrained competition in an industry capable of great over-production in relation to existing consumer demands. In numerous 
ways the Bitaminons Coal Industry has famished more convincing evidence of the need for the integrating force of the 
National Industrial-Recovery Act than any other industry in the nation. 

The initial and immediate activity of the Administrator and the present writer after your appointment was an effort to 
bring about a greater coordination and cooperation between the operators in the different sections of the country in this industry 
and largely in response to this effort there came into being the Northern Coal Control Association and the Smokeless Appalachian 
Coal Association, representing almost all producers in the Appalachian coal area which produces approximately 70% of the 
national Bituminous coal tonnage. These associations join in presenting a Code of Fair Competition, this being a remarkable 
exhibition of cooperation among coal producers who have been engaged for a generation in bitter competitive operations. Other 
associations in various regions presented separate Codes as did certain groups of individual producers thus offered to the 
Administration the problem of harmonizing in some manner the divergent views represented in some twenty-eight different Codes. 

This industry also presented the unique problem of one in which there was far-reaching organization of labor on an 
industrial basis. The United Mine Workers of America having contracts with many operators in many fields and claiming 
organization of workers in many other fields where no contractual relations existed. 

The difficulty of reconcUing all the conflicting elements in this situation can hardly be over-emphasized. Daring the 
progress of discussion following the public hearings representatives of the Appalachian Associations requested the aid of the 
Administration in facilitating the negotiation of a contract between these associations and the United Mine Workers of America, 
and it was evident to the Administration that this step having been taken a successful conclusion to these negotiations was of 
the atmost importance in bringing about the submission of a code for the industry as a whole. 

In the detailed reports which will be prepared for your consideration all the steps uken and the problems involved will 
be given more adequate consideration. At the present time in view of the urgent need for the recommendation and approval 
of the code which was finally adopted and submitted for approval on September 16 by representatives of approximately 95 percent 
of the national tonnage, it is desirable to make recommendations only as to the following minor details: 

1. There is a provision in Article VII, section 3, requiring each code authority to collect and combine any report and 
other information required luder the National Industrial Recovery Act. This should be supplemented by a definite obligation 
imposed npon the industry to furnish to government agencies such statistical information as the administrator may deem necessary 
for the purposes recited in Section 3-A of the National Industrial Recovery Act in the form of an Executive Order to be recom- 
mended to the President. An appropriate provision will be drafted to cover these requirements. 

2. In Article VII, Section 4, provision is made for establishing an Industrial Board to consist of nine members designated 
by the several divisional code authorities and the six members of the divisional authorities who have been appointed by the 
President. It appears that the provision as written may unduly restrict the President in placing on the Industrial Board only 
his appointees to the divisional code authorities. 

Accordingly, it is recommended that as a condition of approval the President reserve the right to name not more than 
three members eidier in substitution for, or in addition to the six presidential appointees made members of the Industrial Board 
by the present provision of Section 4, of Article VII. 

3. Schedule A fixes basic minimum rates for various districts and parts thereof leaving the rates for certain producing 
areas to be either approved or prescribed by the President prior to the effective date of the code. In view of progress made 
since the submission of the code in determining those rates not fixed in schedule A as submitted, I am able to recommend the 
revised Schedule A attached to diis report, and desire to make it plain that no rates as fixed in Schedule A as submitted have 
been changed. 

The code as recommended complies in all respects with the pertinent provisions of Title I of the Act. The groups 
submitting the cod^ impose no inequitable restrictions on admission to membership therein and were truly representative of the 
Bituminous Industry. 

The code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not 
operate to discriminate against them, and wiU tend to effectuate the policy of Title 1 of the National Industrial Recovery Act. 

From evidence adduced during the hearing and all available information, it is believed that this code as now proposed 
and revised represents an effective, practical, equitable solution for this industry and its approval as herewith submitted is 
recommended. 

Respectfully submitted, 

K. M. SIMPSON, 

Deputy Administrator 
Approved: 

HUGH S. JOHNSON. 



9^59 



-238- 

CODE OF FAIR COMPETITION 

for the 

BITUMINOUS COAL INDUSTRY 

as approved by 

PRESIDENT ROOSEVELT ON SEPTEMBER 18, 1933, 

INCORPORATING CONDITIONS OF EXECUTIVE ORDER 



Article I. 

PURPOSES 

To effectuate the policies of Title I of the National 
Industrial Recovery Act, the following provisions are 
eubmitted as a Code of Fair Competition for the 
bituminous coal industry and upon approval by the 
President shall be the standards of fair competition 
for this Industry. 

Article II. 
DEFINITIONS 

As used in this Code the term "Industry" as ap- 
plied to the Bituminous Coal Industry means the 
production and original sale of all kinds of coal 
(except anthracite), lignite, and the production and 
original sale of coke other than by-product coke. 

The term "employer" includes any person em- 
ploying labor in any phase of the industry. 

The term "employee" includes all persons em- 
ployed in the industry. 

The term "Administrator" means the official des- 
ignated by the President to administer the National 
Industrial Recovery Act. 

Article III. 

MAXIMUM HOURS OF LABOR 

No employee except members of the executive, 
supervisory, technical and confidential personnel, 
shall be employed in excess of 40 hours in 
any calendar week after the effective date of 
this Code. No employee shall be required or per- 
mitted to work more than eight hours in any one 



day at the usual working places or otherwise in or 
about the mine, (exclusive of lunch period) whether 
paid by the hour or on a tonnage or other piece 
work basis. 

There shall be excepted from the foregoing limi- 
tations (a) employees required because of accidents 
which temporarily necessitate longer hours for them ; 
(b) supervisors, clerks, technicians and that small 
number of employees at each mine whose daily work 
includes the handling of man trips and/or haulage 
animals and coal in transit and those who are re- 
quired to remain on duty while men are entering and 
leaving the mine. 

The foregoing maximum hours of work shall not 
be construed as a minimum; and if at any mine a 
majority of the employed workers express their 
desire, by written request to the employer, to share 
available work with bona fide unemployed workers 
of the same mine, the number of hours work may be 
adjusted accordingly by mutual agreement between 
such employed workers and their employers. 

Article IV. 

MINIMUM RATES OF PAY 

The basic minimum rate for inside skilled labor 
and the basic minimum rate for outside common la- 
bor shall be the rate hereinafter set forth in Sched- 
ule "A" for each district therein described for each 
such classification of labor, with the understanding 
that other classifications of employment will main- 
tain their customary differentials above or below said 
basic minimum rates and that payments for work per- 
formed on a tonnage or other piecework basis will 
maintain their customary relationship to the pay- 
ments on a time basis provided in said basic minimum 
rates. 



-239- 



Abticle V. 
CONDITIONS OF EMPLOYMENT 

(a) Employees shall have the right to organize 
and bargain CQllectively through representatives of 
their own choosing, and shall be free from the inter- 
ference, restraint, or coercion of employers of labor, 
or their agents, in the designation of such representa- 
tives or in self-organization or in other concerted 
activities for the purpose of collective bargaining or 
other mutual aid or protection; (2) no employee and 
no one seeking employment shall be required as a 
condition of employment to join any company union 
or to refrain from joining, organizing, or assisting a 
labor organization of his own choosing; and (3) em- 
ployers shall comply with the maximum hours of 
labor, minimum rates of pay and other conditions of 
employment, approved or prescribed by the Presi- 
dent. 

(b) Except as otherwise hereinafter provided, all 
coal mined on a tonnage basis shall be weighed and 
the miner paid on the basis of a 2,000 or 2,240 pound 
ton. The miners shall have the right to a check- 
weighman, of their own choosing, to inspect the 

• weighing of coal; Provided, that where mines are not 
now equipped to weigh coal a reasonable time may 
be allowed to so equip such mines; and provided, 
that in any case where rates of pay are based on anv 
other method than on actual weights, the miners shall 
have the right to check the accuracy and fairness of 
the application of such methods, by representatives 
of their own choosing. 

(c) The net amount of wages due shall be paid 
semi-monthly in lawful money or par-check at the 
option of operators. Any deductions from em- 
ployees' pay, if not a matter of aereement, shall be 
in conformity with such general rules and regulations 
as the Administrator may prescribe for the purpose 
of preventing unfair deductions, or those which may 
in effect lower the rates of pay herein provided. 

(d) Employees other than maintenance or super- 
visory men or those necessary to protect the prop- 
erty, shall not be required as a condition of employ- 
ment to live in homes rented from the employer. 

»(e) No employee shall be required as a condition 
of employment to trade at the store of the employer. 

(f) No person under seventeen (17) years of age 
shall be employed inside any mine or in hazardous 
occupat'ons outside any mine, provided, however, 
that where a state law provides a higher minimum 
age, the state law shall eovern; no person under the 
aee of sixteen (16) shall be employed in or about a 
mine. 

(g) As soon as possible after the adoption of this 
Code, the National Recovery Administration shall 
undertake, through a designated committee or agency, 
an investigation for the nurpose of reporting on or 
before December 31. 1933: upon (a) the practicabil- 
ity and cost (aisuming the maintenance of existing 
rates of pay) of applying to bituminous coal mining 
a shorter work day and work week, (b) the effect of 
and advisability of revisins wage differentials in the 
various divisions and districts of the ind\i«try and in 
the event of recommended change specification of 
the amount thereof; (c) the sales obtained for 
coal, or reasonably to be anticipated, up to the time 
of the report, for the purpose of determining whether 



wages and employment can be further increased or 
maintained without imposing undue burdens upon 
the industry. 

On January 5, 1934, there shall be held a confer- 
ence between representatives of employers and em- 
ployees operating under this Code, together with rep- 
resentatives of the National Recovery Administra- 
tion, for the purpose of determining what, if any, re- 
visions may he desirable at that time of the wages, 
hours and differentials, or any other requirements of 
this Code, on the basis of conditions then existing and 
the report of representatives of the National Re- 
covery Administration made as hereinbefore pro- 
vided. 

Unless revised by mutual agreement, as the result 
of said conference beginning January 5, 1934, the 
hours of work, minimum rates of pay and wage dif- 
ferentials as set forth in this Code shall continue in 
effect until April 1, 1934. 

Article VI. 
UNFAIR PRACTICES 

Section 1. The selling of coal under a fair market 
price (necessary to carrv out the purposes of the Na- 
tional Industrial Recovery Act, to pay the minimum 
rates herein established, and to furnish employment 
for labor) is hereby declared to be an unfair com- 
petitive practice and in violation of this Code. In 
order to determine the fair market price, agencies 
shall be established, as hereinafter provided, and 
sales of coal at any time at a price less than a fair 
market price determined and published, as herein- 
after provided, shall create against any person selling 
at a lower price a prima facie presumption that such 
a person is engaged in destructive price cutting and 
unfair competition. It shall be proper in determin- 
ing such fair market price to take into consideration, 
in addition to the matters above set forth, also com- 
petition with other coals, fuels and forms of energy 
or heat production. 

Section 2. The fair market prices of coal of any 
grade and character referred to in the next preceding 
section, subject to the power of review hereinafter 
stated shall be 

(a) The minimum prices for the various grades 
and sizes in the various consuming markets which 
may be established for future application by a mar- 
keting agency or by marketing agencies, of whatever 
form or howsoever constituted, now existing or here- 
after created or organized, acting for coal producers 
truly representative of at least two-thirds of the com- 
mercial tonnage of any coal district or group of dis- 
tricts, such minimum prices to be effective when and 
as announced as provided in Section 4 hereof. 

(b) The minimum prices for the various grades 
and sizes in the various consuming markets, where no 
such marketing agency exists, which may be estab- 
lished for future application by the respective Code 
Authorities hereinafter set up, for their respective 
areas, after having given consideration to the various 
conditions and circumstances entering into the sale 
of each grade and class of commercial coal produced 
in the district or group of districts it represents, such 
minimum prices to be effective when announced as 
pro\'ided in Section 4 hereof. 



9^553 



(j) As a basis for determining the fair market 
price to be announced and published, as proA^ded in 
the two preceding clauses, the Code Authorities shall 
utilize the Classifications ot coals made by such 
agencies as are referred to iu clause (aj of this sec- 
tion, and shall classify the coals in said districts not 
sold by such agencies and also the coals in the dis- 
tricts referred to in clause (b) of this section, to 
which the various prices apply. Said Code Author- 
ities shall, at all times, provide and keep open an office 
during business hours to which any coal producer in 
said districts and any representative of the Admin- 
istrator may apply for information with respect to 
said classifications and prices. 

(d) The term "marketing agency" or "agency" as 
used in this Article shaU include any trade associa- 
tion of coal producers complying with the require- 
ments of a marketing agency and exercising the 
functions thereof. 

Section 3. The fair market prices established for 
future application under the provisions of Section 2 
(a) shall be reported to said Code Authorities by any 
such marketing agencies in such manner as may be 
required by such Authorities. 

Section 4. The fair market prices of bituminous 
coal, established as atoiesaid by such agencies and 
Code Authorities shall be published within fifteen 
days after the effective date of this Code, after ap- 
proval by the Presidential Member of the Code 
Authority (acting under the direction of the 
Administrator), who in his approval may per- 
mit a reduction or increase in said prices by 
action of said agencies or Authorities within the 
limits which he may prescribe', and thereafter shall 
be pubhshed wheuever any change is made therein, 
and not less frequently than one each month, and 
on the first of the month. Simultaneously with such 
publication, said fair market prices of iutuminous 
coal shall be transmitted by the Code Authorities to 
the National Recovery Administrator for his further 
review and subsequent action. 

Section 5. Both the records and the data of such 
marketing agencies, and of said Code Authorities 
shall be open to inspection and investigation by any 
agent of the Administrator whom he shall appoint 
for that purpose. Should such an agent of the Ad- 
miuistratoB disapiJrove of any changes proposed in 
any fair market prices from those previously ap- 
proved by the Administrator as being in excess of 
any reductions or increases allowed in such approval, 
such changes shall not be made effective unless and 
until the Administrator shall approve of them. 

Section 6. Tlie consignment of unordered coal, 
or the forwarding of coal which has not actually been 
sold, consigned to the producer or his agent, is a 
violation of this code; provided, however, that coal 
which has not actually been sold may be forwarded, 
consigned to the producer or his agent at rail or 
truck yards, tidewater ports, river ports or lake ports 
and/or at docks beyond such ports, but such consign- 
ments shall be limited to cover: 

(a) Bunker coal; 

(b) Coal applicable against existing contracts; 

(c) Coal for storage (other than in railroad cars) 
by the producer or his agent in rail or truck yards 



or on docks, wharves or other yards for resale by 
the producer or his agent. 

Section 7. The adjustment of claims with pur- 
chasers of coal in such manner as to grant secret al- 
lowances, secret rebates or secret concessions crc-tes 
price discrimination and is a violation of this Code. 

Section 8. The prepayment of freight charges 
with intent or with the effect of granting a discrimina- 
tory credit allowance is a violation of this Code 

Section 9. The giving in any form of af'justmem?, 
allowances, discounts, credits, or refunds to pur- 
chasers or sellers of coal, for the purpose or with the 
effect of altering retroactively a price previously 
agreed upon in such manner as to create price dis- 
crimination is a violation of this Code. 

Section 10. The pre-datiug or ihe post-dating of 
any invoice or contract for the purchase or sale cf 
coal, except to conform to a bona fide agreement for 
the purchase or sale entered into on tlie pre-date is 
a violation cf this Code. 

Section 11. Terms of sale ihall be strictly ad- 
hered to; and the payment or allowance of rebates, 
refunds, credits, or uneained discounts, whether in 
the form of money or otherwise, or extending to cer- 
tain purchasers services or privileges not extended to 
all purchasers under like terms and conditions, is a 
violation of this Code. 

Seci'ion 12. An attempt to purchase business, or 
obtain information concerning a cc.mpelitor's busi- 
ness by gifts or bribes, is a violation of this Code. 

Section 13. The intentional misrepresent.ition of 
anal5'sis and/or sizes or the intentional making, caus- 
ing or permitting to be made, or publishing, of any 
false, mitrue, misleading or deceptive stalomcni., by 
way of advertising, invoice, or otherwise, concerning 
the size, quahty, character, nature, pri-uaratKni or 
origin of any coal, bought or sold is a violation of this 
Code. 

Section 14. The unauthorized use, either in 
written or oral form, of trade-marks, trade names, 
slogans, or advertising matter already adopted by a 
competitor, or deceptive approximation thereof, is a 
violation of this Code. 

Section 15. Inducing or attempting to induce, by 
any means or device whatsoever, a breach of contract 
between a competitor and his customer daring the 
term of such contract, is a vioLition of this Code. 

Section 16. Nothing in the foregoing sections of 
this Article shall preveiit any American producer 
from creating special prices for overseas exports. 

Section 17. The splitting or dividing of commis- 
sions, brokers fees, or brokerage discounts, or other- 
wise in any manner througii sham or indirection the 
use of a brokerage commission or jobbers arrange- 
ments or sales agency for making discounts, allow- 
ances, or rebates, or pri:'cs other tliau those deter- 
mined as provided in this Code, to any industrial con- 
sumer or to any retailer, or to others sliall be a viola- 
tion of this Code. 

Section 18. To sell to, or through, any broker, 
jobber, commission account, or sales agency, which 
is in fact an agent for an organization ot retailers or 
industrial consumers, whereby they sicure indirectly 
a discount, dividend, allowance or rcliatcs, or a price 
other than that determined as provided in this Code 
shall be a violation of this Code. 



9759 



Ahticle VII. 

ADraNISTRATION 

Section 1. For the purposes of Administration 
of this Code, the Bituminous Coal Industry is hereby 
divided into five divisions as follows: 

Division No. I. — Pennsylvania, Ohio, Lower PeH- 
insula of Michigan, Maryland, West Virginia, 
Kentucky, Northern Tennessee, (including all 
counties not included within Division No. 
Ill), Virginia and North Carolina. 
Division No. II. — Iowa, Indiana and Dlinois. 
Division No. III. — Alahama, Southern Tennessee, 
(including Marion, Grundy, Sequatchie, 
White, Hamilton, Bledsoe and Rhea Coun- 
ties), and Georgia. 
Division No. IV. — Missouri, Kansas, Arkansas, 

Oklahoma, and Texas. 
Division No. V. — New Mexico, Colorado, Utah, 
Wyoming, North Dakota, South Dakota, 
Montana, Idaho, Washington, Oregon, Calif- 
lOrnia, Nevada, and Arizona. 
A In each of the foregoing five divisions, sub-divi- 

"^^ sions may be established, as hereinafter provided. 

Section 2. Divisional Code Authorities: For 
each of the foregoing divisions there shall be estab- 
hshed within ten days after the effective date hereof, 
or within such further time as may be permitted by 
the Administrator, a Divisional Code Authority, or 
Sub-Divisional Code Authorities for the administra- 
tion of this Code within such division, either for the 
division as a unit, or for sub-divisions thereof, re- 
spectively, as may be determined. All the members 
of a Code Authority, except one (without vote and to 
be appointed by the President) shall be selected by 
an association or associations, or a committee of coal 
producers within the division or sub-division which 
shall be truly representative of the industry therein 
and impose no inequitable restrictions on admission 
to membership. A full report of any such action 
taken to establish a Code Authority shall be made 
to the Administrator and shall become effective upon 

• approval by him. A sub-division shall consist of a 

geographical area within which all coal producers 
shall be entitled to membership in the association or 
committee establishing the Code Authority. The 
Administrator shall have power to limit the number 
of sub-divisions within a division and to determine 
any controversy arising in the establishment of such 
a Code Authority, and his decision shall be conclusive 
as to compliance with the requirements of this Sec- 
tion and of the National Industrial Recovery Act in 
the initial establishment of such a Code Authority. 
In the event that Sub-Divisional Code Authorities 
are established mthin a division, such Sub-Divisional 
Code Authorities shall establish a Divisional Code 
Authority to exercise the functions hereinafter pro- 
vided for a Divisional Code Authority and any other 
functions which may be conferred upon the Divi- 
sional Code Authority by the Sub-Divisional Code 
Authorities, all in conformity with any rules and 
regulations prescribed by the Administrator. One 
member of a Divisional Code Authority, without 
vote, shall be appointed by the President. 

A Code Authority shaU administer this Code in 



-241- 

its Division or Sub-divisiota and shall have the duties 
and exercise the powers which are conferred upon it 
in this article and in Article VI of this Code, and 
shall have authority to adopt appropriate by-laws, 
rules and regulations for the exercise of its functions. 

Marketing agencies or trade associations may be 
established or maintained wthin any division or 
subdivision by a voluntary association of producers 
within any producing district therein, as such district 
may be defuied by the Code Authority and function 
under such general rules and regulations as may be 
prescribed by the Code Authority, with the approval 
of the Administrator, for the purpose of preventing 
any unfair practices, as defined in Article VI of this 
Code. 

Section 3. Each Code Authority shall collect and 
compile any reports and other information required 
under the National Industrial Recovery Act; and in 
investigations of any complaint of unfair practices 
the Presidential member of a Code Authority shall 
have power to require reports from, and shall be 
given access to inspect the books and records of 
producers within the jurisdiction of such Code 
Authority to the extent he may deem necessary for 
the determination of the validity of the compiaint. 
AU coal producers subject to the Code shall furnish 
to any government agency or agencies designated by 
the Administrator, such statistical information as the 
Administrator may, from time to time, deem nec- 
essary for the purposes recited in Section 3 (a) of 
the National Industrial Recovery Act and any reports 
and other information collected and compiled by a 
Code Authority, as heretofore provided, shall be 
transmitted to such government agencies, as the 
Administrator may direct. 

The expense of administering this Code by a Divi- 
sional (or Sub-Divisional) Code Authority shall be 
borne by those subject to such Code Authority, each 
paying his proportionate share, as assessed, computed 
on a tonnage basis, in accordance with regulations 
prescribed by the Code Authority with the approval 
of the Administrator. 

Section 4. Industrial Board. There shall be es- 
tablished within ten days after the creation of the 
Divisional Code Authorities a National Bituminous 
Coal Industrial Board, consisting of four members 
designated by the Divisional Code Authority of Divi- 
sion No. I, two members designated by the Divisional 
Code Authority of Division No. II, one member 
each designated by the Divisional Code Authorities 
of Divisions No. Ill, IV, and V and the five members 
of the Divisional Code Authorities who have been 
appointed by the President. The President may 
appoint not more than three members of the Indus- 
trial Board in addition to, or in substitution for one 
or more of, the aforesaid five members of the Divi- 
sional Code Authorities. This Board shall have 
the duties and exercise the powers conferred upon it 
in this Code, or any revisions thereof and particularly 
shall meet from time to time at the call of the Ad- 
ministrator, who shall be ex-officio Chairman thereof, 
to consider and to make recommendations to the 
Divisional Code Authorities and to the President as 
to any amendments of this Code, or other measures 
which may stabilize and improve the conditions of 
the industry and promote the public interest therein. 



-243- 



Section 5. Labor Relatiotu. (a) Any con- 
troversy concerning hours, wages and conditions of 
employment, or compliance with the provisions of 
Article V of this Code, between employers and em- 
ployees who are organized or associated for collective 
action shall, if possible, be adjusted by conference 
and negotiation between duly designated representa- 
tives of employers and such employees, meeting either 
in a mine conference or district conference or divi- 
sional conference, as the machinery for such confer- 
ence may be estabUshed by agreement of the parties 
thereto; and it shall be the duty of employers and 
employees to exert every reasonable effort to establish 
such a machinery of adjustment and to utilize it to 
negotiate to a conclusion such controversies wherever 
possible. 

(b) Any such controversy which cannot be settled 
in the manner so provided and which threatens to 
interrupt or has interrupted, or is impairing, the 
efficient operation of any mine or mines to such an 
extent as to restrain interstate commerce in the 
products thereof, shall be referred to the appropriate 
Bituminous Coal Labor Board, established as herein- 
after provided, and the decision of said Board shall 
be accepted by the parties to the controversy as 
efifective for a provisional period of not longer than 
six months, to be fixed by the Board. 

(c) Durmg the consideration of any such con- 
troversy either by the agreed machinery of adjust- 
ment, or by the Bituminous Coal Labor Board, 
neither party to the controversy shall change the 
conditions out of which the controversy arose, or 
utilize any coercive or retaliatory measures to com- 
pel the other party to accede to its demands. 

(d) If any such controversy shall involve or de- 
pend upon the determination of who are the repre- 
sentatives of the employees chosen as provided in 
Section 7(a) of the National Industrial Recovery 
Actt the appropriate Bituminous Coal Labor Board, 
through any agent or agency it may select, shall have 
the power to determine the questions by an investi- 
gation and, if necessary, by a secret ballot taken 
under its direction. 

(e) A Bituminous Coal Labor Board shall be ap- 
pointed by the President for each Division, except 
there shall be two Boards for Division No. I, to 
exercise the powers herein conferred upon it, which 
shall consist of three members, one to be selected 
from nominations submitted by organizations of em- 
ployees within such Division, one to be selected from 
nominations by the Divisional Code Authority and 
one who shall be wholly impartial and disinterested 
representative of the President. The expenses of 
such board shall be met by equal contributions from 
the employers and employees nominating members, 
the amount and method of collecting which shall be 
determined by regulations prescribed by the 
President. 

(f) There shall be a National Bituminous Coal 
Labor Board composed of the members of the six 
divisional labor boards which may be convened upon 
call of the Administrator in the event that — 



1. A controversy involves employers and employees 
of more than one division, or 

2. The decision of a divisional labor board affects 
operating conditions of more than one division either 
directly or because of its effect upon competitive 
marketing, or 

3. In the opinion of the Administrator the decision 
of a divisional labor board involves the application 
of a pohcy affecting the general public, or the wel- 
fare of the industry as a whole. 

The National Bituminous Coal Labor Board may 
exercise all the powers conferred upon a division^ 
labor board, either in giving original consideration 
to a controversy, or in reviewing the decision of a 
divisional labor board, which may be either affinned, 
set aside and/or modified. 

Article VIII. 
SAFETY 

Employers and employees shall cooperate in main- 
taining safe conditions of operation in compliance 
with the applicable requirements of State laws or 
regulations in conformity therewith. 

Article IX. 
AMENDMENTS. 
Any Code Authority may propose amendments to 
this Code from time to time effective generally or as 
to the area within its jurisdiction which, after sub- 
mission to any other Code Authority affected thereby 
(which shall include the divisional Code Authority 
in case of an amendment proposed by a sub-divisional 
Code Authority), may be recommended by the Ad- 
ministrator for the approval of the President. 

Article X. 
This Code and all the provisions thereof are ex- 
pressly made subject to the right of the President, 
in accordance with the provision of sub-section (b) 
of Section 10 of the JVational Industrial Recovery 
Act, from time to time to cancel or modify any order, 
approval, license, rule or regulation issued under 
Title I of said Act and specifically, but withont 
limitations, to the right of the President to cancel or 
modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

Article XI. 
EFFECTIVE DATE AND TERMINATION. 

This Code shaU become effective on the second 
Monday following its approval by the President, and 
shall continue in effect until April 1, 1934, and 
thereafter in the absence of the exercise of the power 
reserved to the President in Article X, subject to the 
exercise of the option, after 30 days notice to the 
Administrator, by any coal producer to withdraw his 
consent after April 1, 1934, to the further enforce- 
ment of the Code as a Code to which he has volun- 
tarily given his consent. 



J-V5y 



SCHEDULE A 
Basic Minimum Rates 



District A 

Pennsylvania 
Ohio 



Lower Peninsula of Michigan 

Panhandle District of West Virginia 



Minimam Inside 


Minimum Outside 


Skilled Labor 


Common Labor 


Per Day Per Hour 


Per Day Per Hour 


$4.60 571;^ 


13.60 45 


4.60 571/2 


3.60 45 


4.60 57^ 


3.60 45 


4.60 571/2 


3.60 45 



District B 

Northern West Virginia *.. 



— 4.36 



541/j 



District C 

Southern West Virginia ' 

Eastern Kentucky * 

Upper Potomac District of West Virginia' 

Maryland 

Virginia _ 



Northern Tennessee *.. 



District D 
Indiana 



District E 
Illinois 



District F 
lowa^ 



Wayne and Appanoose Counties of Iowa.. 



4.20 


521/2 


3.20 


40 


4.20 


521/2 


3.20 


40 


4.20 


521/2 


3.20 


40 


4.20 


521/2 


3.20 


40 


4.20 


521/2 


3.20 


40 


4.20 


521/2 


3.20 


40 


4.571/2 


571/5 


4.20 


521/2 


5.00 


621/2 


4.00 


50 


4.70 


58% 


4.00 


50 


4.56 


57 


3.86 


481/, 



District G 

Missouri, Kansas, Arkansas and Oklahoma- 



46% 



District H 

Western Kentucky ' 



371/2 



' Includes Hancock, Brooke, Ohio and Marshall Counties. 

•Includes Monongalia, Marion, Harrison, Taylor, Lewis, Barbour, Gilmer, Upshur, Randolph, Braxton, Preston and Webster 

Counties and those mines in Nicholas County served by the B. & 0. R. R. 
' Includes all mines in counties not named under districts A and B and the Upper Potomac District. 
•Includes all mines in Kentucky located east of a north and south line drawn along the Western boundary of the Citr of 

Louisville. ' ' 

' Includes Grant, Mineral and Tucker Counties. 

" Includes all counties not named under Southern Tennessee in District J and Jl. 
' Excludes Wayne and Appanoose Counties. 
• Includes all mines in Kentucky west of a north and south line drawn along the western boundary of the City of Louisville. 



S7S!j 



-244- 
SCHEDULE A— Continued 

Basic Minimum Rates 



District J 
Alabama 
Georgia . 



Southern Colorado' 



District L 

Northern Colorado i* 



District M 
Utah _ 



District N 

Southern Wyoming . 
Northern Wyoioing 

District 6 

Montana 



District P 

Washington 

District Q 

North Dakota . 
South Dakota 



Minimum Inside 
Skilled Labor 



Southern Tennessee, Hamilton and Rhea Counties.. 

District J-1 

Marion, Gnindy, Sequatchie, White, Van Buren, 
Warren, and Bledsoe Counties in the State of 
Tennessee 

District K 

New Mexico __ 



Per Day 

3.40 
3.40 
3.40 



Per Hour 

421/2 
421/2 
421/2 



Minimum Outside 
Common Labor 

Per Day Per Hour 
2.40 30 

2.40 30 

2.40 30 



2.84 



351/2 



4.48 
4.44 


56 

551/2 


3.75 
3.75 


4678 
46% 


5.00 


621/2 


3.75 


46% 


5.44 


68 


4.48 


56 


5.42 
5.42 


67% 
673/4 


4.44 
4.54 


551/2 
563/4 


5.63 


703/8 


4.82 


6OI/4 


5.40 


671/2 


4.00 


50 


4.00 
4.00 


50 
50 


3.20 
3.20 


40 
40 



• Includes all counties in Colorado not named under District L. 

" Includes Jackson, Larimer, Weld, Boulder, Adams, Arapahoe, El Paso, Douglas, Elbert and JeiTerson Counties. 
Note; Differences between districts in the foregoing minimum rates are not to be considered as fixing permanent wage 
differentials or establishing precedents for future wage scales. 



9759 



-245- 



NATIONAL RECOVERY ADMINISTRATION 

The text of President Roosevelt's Exiecutive Order approving the Code of Fair Competition for the Bitu- 
minous Coal Industry, is as follows: 

EXECUTIVE ORDER 

CODE OF FAIR COMPETITION 

FOR THE BITUMINOUS COAL INDUSTRY 

An apphcation having been duly made, pursuant to and in fuU compliance with the provisions of Title 
I of the National Industrial Recovery Act, approved June 16, 1933, for my approval of a Code of Fair Compe- 
tition for the Bituminous Coal Industry, and hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said Code of Fair Competition together with bis recommenda- 
tions and findings with respect thereto, and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions of Title I of said Act and that the require- 
ments of clauses (I) and (2) of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I Franklin D. Roosevelt, President of the United States, pursuant to the authority 
vested in me by Title I of the National Industrial Recovery Act, approved June 16, 1933, and otherwise, do 
adopt and approve the report, reconunendations and findings of the Administrator and do order that the 
said Code of Fair Competition be and is hereby approved, subject to the following conditions: 

(1) There shall be added to the first paragraph of Section 3 of Article VII of the Code the following 
sentence: 

"All coal producers subject to the Code shall furnish to any government agency or agencies desig- 
nated by the Administrator, such statistical information as the Administrator may, from time to 
time, deem necessary for the purposes recited in Section 3 (a) of the National Industrial Recovery 
Act and any reports and other information collected and compiled by a Code Authority, as here- 
tofore provided, shall be transmitted to such government agencies, as the Administrator may direct." 

(2) There shall be added after the first sentence of Section 4 of Article VII the following sentence: 
"The President may appoint not more than three members of the Industrial Board in addition to, 
or in substitution for one or more of, the aforesaid six members of the Divisional Code Authorities." 

(3) Schedule "a" as attached to the Code recommended by the Administrator is approved with the 
understanding that, any basic minimum rates not fixed therein may be approved or prescribed by 
the President at any time prior to the effective date of this Code by a supplementary Executive 
Order. 

(4) Because it is evident that attempts by those submitting Codes to interpret Section 7(a) of the 
National Industrial Recovery Act have led to confusing and misunderstanding, such interpretations 
should not be incorporated in Codes of Fair Competition. Therefore, paragraph (b) of Article V 
must be eliminated without, by this exclusion, indicating disapproval in any way of the joint state- 
ment of the Administrator and General Counsel of the National Recovery Administration, which has 
been attached to the Code as Schedule "B" and was incorporated by reference in said paragraph 
(b) of Article V. 

(5) The exception to the definition of "employee" in Article II belongs in Article III. Accordingly, 
the words "except members of the executive, supervisory, technical and confidential personnel" are 
stricken from the third paragraph of Article II. These same words are inserted in the first 
paragraph of Article III after the words "no employee." 



FRANKLIN D. ROOSEVELT 



THE WHITE HOUSE 
SEPTEMBER 18, 1933. 

APPROVAL RECOMMENDED 
HUGH S. JOHNSON 
Administrator. 



9759 



Page 10 



•SAG- 



SCHEDULE B 

(This is the schedule referred to in the Executive Order on page 10) 

STATEMENT CONCERNING SECTION 7 (a) OF 
NATIONAL INDUSTRIAL RECOVERY ACT. 



The plain meaning of Section 7 (a) cannot be changed by any interpretation of any- 
one. It is the function of the Administrator and the courts to apply and to interpret the 
law in its administration; and no one else can assume this function and no official inter- 
pretation can be circumscribed, affected or foreclosed by anyone writing his own inter- 
pretation into any code or agreement. Such an interpretation has no place there and 
cannot be permitted. 

The words "open shop" and "closed shop" are not used in the law and cannot be 
written into the law. 

These words have no agreed meaning and will be erased from the dictionary of the 
N.R.A. 

The law requires in codes and agreements that "employees shall have the right to 
organize and bargain collectively through representatives of their own choosing." 

This can mean only one thing, which is that employees can choose anyone they desire 
to represent them, or they can choose to represent themselves. Employers hkewise can 
make collective bargains with organized employees, or individual agreements with those' 
who choose to act individually; provided, of course, that no such collective or individual 
agreement is in violation of any State or federal law. But neither employers nor em- 
ployees are required, by law, to agree to any particular contract, whether proposed as an 
individual or collective agreement. 

The law provides that employees shall be free from the interference, restraint or 
coercion of employers in the exercise of their rights established by the law. The conduct 
of employers which is here prohibited has been defined by the Supreme Court in the 
case entitled— T. & N. O. R. R. v. Brotherhood of Railway Clerks, 281 U. S. 548. The rulings 
of the Supreme Court lay down the law which governs the N.R.A. 

Under Section 7 (a), employers are forbidden to require "as a condition of employ- 
ment" that an employee shall either "join a company union," or "refrain from joining, 
organizing, or assisting a labor organization of his own choosing." The law does not pro- 
hibit the existence of a local labor organization, which may be called a company union 
and is composed only of the employees of one company. But it does prohibit an employer 
from requiring, as a condition of employment, that any employee join a company union 
and it prohibits the maintenance of a company union, or any other labor organization, 
by the interference, restraint or coercion of an employer. 

If there is any dispute in a particular case over who are the representatives of the 
employees of their own choosing, the N.R.A. will offer its services to conduct an impartial 
investigation and, if necessary, a secret ballot to settle the question. 

The N.R.A. will not undertake in any instance to decide that a particular contract 
should be made, or should not be made between lawful representatives of employees and 
employers; or to decide that a contract which has been lawfully made should not be 
enforced. 

Cooperation in all industrial relations depends largely on the making and main- 
tenance of agreements. The N.R.A. will promote and aid such cooperation. 

HUGH S. JOHNSON DONALD R. RICHBERG 



9759 



-247- 

EXECUTIVE ORDER 
Revised Code of Fair Competition for the Bituminous Coal Industry 

A Code of Fair Competition for the Bituminous Coal Industry was approved by an 
Executive Order dated September 18, 1933, subject to certain conditions including a 
condition that basic minimum rates not fixed in Schedule "A", as attached to the Code, 
might be approved or prescribed by the President at any time prior to the effective date 
of the Code, which provision was also incorporated in the Code in said Schedule "A". 
Following said Executive Order of September 18th further consideration has been given to 
said basic minimum rates and said Schedule "A" has been revised so as to include addi- 
tional rates, either agreed upon and submitted for approval, or recommended as those 
which should be prescribed by the President. 

The associations and groups of coal producers and individual coal producers sub- 
mitting said Code for the approval of the President, also authorized the Administrator 
to make such minor changes as might be desirable to improve its language without sub- 
stantially altering the substance thereof. 

NOW, THEREFORE, I, Franklin D. Rooseveh, President of the United States, pur- 
suant to the authority vested in me by Title I of the National Recovery Act, approved 
June 16, 1933, and otherwise, and upon the recommendation of the Administrator do 
order that — 

(1) Schedule "A", as revised and attached to this order, is hereby approved as 
the schedule of basic minimum rates approved or prescribed by the President 
and incorporated in the Code of Fair Competition for the Bituminous Coal 
Industry, as provided in Article IV of said Code. 

(2) In order to correct a typographical error in the Code and in the Executive 
Order of September 18th, in the two places where the phrase "six members 
of the Divisional Code Authorizes" occurs in Article VIl, Section 4, this shall 
be corrected to read 'five members of the Divisional Code Authorities." 

(3) In order to provide for the impartial decision of any controversy submitted 
to the National Bituminous Coal Labor Board there is hereby imposed, as 
a condition upon the functioning of said Board, that only the impartial and 
disinterested representatives of the President appointed to the Divisional 
Labor Boards shall participate in the decisions of the National Bituminous 
Coal Labor Board, the other members thereof acting only in an advisory 
capacity. 

(4) Subject to the conditions of the Executive Order of September 18, 1933, and 
the modification thereof and other provisions of this order, the Code of Fair 
Competition for the Bituminous Coal Industry is hereby approved. 

(Signed) Feankxin D. Roosevelt. 



September 29, 1933. 
APPROVAL RECOMMENDED 

(Signed) Hugh S. Johnson 

Administrator. 



37:yj 



-248- 

Appalaehian Agreement 

Between Northern Coal Control Association and the Smokeless and Appalachian Coal 
Association; and the United Mine Workers of America. Signed Sept. 21, 1933. 



When the President approved this agreenient he added to it the following provision: 
"In approving this agreement, it is with the understanding that the 
hoars and wages and conditions of employment recited herein may 
also be applied to the employees who are not parties hereto; and that 
the requirements of Sec 7^ of the N. I. R. A. will be complied with in 
carrying out this agreement." 



APPALACHIAN AGREEMENT 

This Agreement is made and entered into 
pursuant to the provisions of Section 7 (b) of 
the National Industrial Recovery Act, and shall 
become effective upon approval by the Presi- 
dent of the United States as provided therein. 

This Agreement, made the 21st day of Sep- 
tember, 1933, between the Northern Goal 
Control Association, a voluntary association on 
behalf of each member thereof, and the Smoke- 
less and Appalachian Goal Association, a volun- 
tary association on behalf of each member 
thereof, hereinafter referred to as the Oper- 
ators, parties of the first part; and the Inter- 
national Union United Mine Workers of 
America and Districts 2, 3, 4, 5, 6, 17, 19, 30, 
and 31, hereinafter referred to as Mine Workers, 
and on behalf of each member thereof, party 
of the second part. (New Districts of the 
United Mine Workers of America may be es- 
tablished in this territory.) 

Witnesseth: It is agreed that this contract 
is for the exclusive joint use and benefit of the 
contracting parties, as heretofore defined and 
set forth in this Agreement; and it shaU be 
construed as binding upon and effective in 
determining only the relations with each other 
of those represented by the parties signatory 
hereto. It is the intent and purpose of the 
parties hereto that this Agreement will promote 
an improved industrial and economic relation- 
ship in the bituminous coal industry, and to set 
forth herein the basic agreements covering rates 
of pay, hours of work, and conditions of em- 
ployment to be observed between the parties 
in the following districts constituting the Appa- 
lachian Territory: 

Northern Coal Control Association Terri- 
tory: — Pennsylvania, Ohio, together with Ohio, 
Brook, and Marshall Counties of West Virginia, 
and Northern West Virginia, including Counties 
of Monongalia, Marion, Harrison, Preston, 
Taylor, Barbour, Randolph, Upshur, Lewis, 
Gilmer, Braxton, Webster, and that portion of 
Nicholas County containing coal or coal mines 
along the line of the B. & 0. Railroad. 

Smokeless and Appalachian Territory: — The 
State of Virginia, Northern Tennessee, that 
part of Kentucky lying east of a line drawn 
north and south through the city of Louisville, 
and that part of West Virginia not included in 
Northern Goal Control Association territory, as 
set out above, and except Grant, Mineral, and 
Tucker Counties of West Virginia. 

Maximum Hours and Wo|king Time 
Eight hours of labor shall c&istitute a day's 
work. The eight-hour day meUas eight hours' 



work in the mines at the usual working places 
for all classes of labor, exclusive of the lunch 
period, whether they be paid by the day or be 
paid on the tonnage basis; except in cases of 
accident which temporarily necessitates longer 
hours for those Mine Workers required on ac- 
count thereof; and also excepting that number 
of Mine Workers in each mine whose daily 
work includes the handling of man-trips and 
those who are required to remain on duty while 
men are entering and leaving the mine. 

The eight-hour day, five-day week (40 hours 
per week), as provided in this Agreement, shall 
prevail. 

The following classes of Mine Workers are 
excepted from the foregoing provisions as to the 
maximum hours of work: 

All Mine Workers engaged in the transporta- 
tion of men and coal shall work the additional 
time necessary to handle man-trips and all coal 
in transit, and shall be paid the regular hourly 
rate. 

When day men go into the mine in the 
morning, they shall be entitled to two hours' 
pay whether or not the mine works the full 
two hours, but, after the first two hours, the 
men shall be paid for every hour thereafter by 
the hour, for each hour's work or fractional 
part thereof. If for any reason the regular 
routine work can not be furnished inside day 
men, the employer may furnish other than the 
regular work. 

Drivers shall take their mules to and from 
stables, and the time required in so doing shall 
not include any part of the day's labor, their 
work beginning when they reach the change at 
which they receive empty cars, but in no case 
shall the driver's time be docked while he is 
waiting for such cars at the point named. The 
method at present existing covering the harness- 
ing and unharnessing of mules shall be con- 
tinued th'-oughout the life of this Agreement. 

Motormen and trip riders shall be at the 
passway where they receive the cars at starting 
time. The time required to take motors to the 
passway at starting time and departing from 
the same at quitting time shall not be regarded 
as a part of the day's labor, their time beginning 
when they reach the change or parting at which 
they receive cars, but in no case shall their 
time be docked while waiting for cars at the 
point named. 

Holidays to be recognized are referred to the 
various district conferences for settlement. 



^^59 



Basic Tonnage Rate 

Pick minmg is the removal by ihe miner of 
coal that has not been undercut or overcut by 
a machine. The basic rate for pick mining and 
hand loading of coal shall include the work 
required to drill, shcot and clean and load the 
coal properly, timber the working place, and 
all other work and customs incidental thereto. 

In the districts represented by Northern Coal 
Control Association a shortwall machine 
dififerential of ten cents (10c) per net ton be- 
tween pick and machine mining rates shall be 
maintained. 

Any change in mining methods or installation 
of equipment that relieves the Mine Worker of 
any of the above duties and increases his pro- 
ductive capacity shall be recognized and a piece 
work rate agreed to therefor properly related 
to the basic rate. 

The standard for basic tonnage rates shall be 
2000 pounds per ton; where the gross ton of 
2240 pounds is the measure the equivalent rate 
shall be paid. 

The basic tonnage, hourly and day wage rates 
for the various producing districts represented 
in this conference are shown in the attached 
Schedules A, B, and C, which are parts hereof. 

Yardage and deadwork rates in all districts 
shall be increased twenty (20) per cent. 

Checkweichmen 

The Mine Workers shall have the right to a 
checkweighman, of their own choosing, to in- 
spect the weighing of coal; provided that where 
mines are not now equipped to weigh coal a 
reasonable time may be allowed to so equip 
such mines: and provided that in any case 
where on account of physical conditions and 
mutual agreement wages are based on measure 
or other method than on actual weights, the 
Mine Workers shall have the right to check the 
accuracy and fairness of such method, by a 
representative of their own choosing. 

Cars shall be tared at reasonable intervals and 
without inconvenience to the operation of the 
mine. Tare shall be taken of the cars in their 
usual running condition. 

At mines not employing a sufficient number 
of men to maintain a checkweighman the weight 
credited to the Mine Workers shall be checked 
against the billing weights furnished by rail- 
roads to the Operators, and on coal trucked from 
such mines a practical method to check the 
weights shall be agreed upon. Such weights 
shall be checked once a month. 

The wages of checkweighmen will be col- 
lected through the pay office semi-monthly, upon 
a statement of time made by the checkweigh- 
man, and approved by the Mine Committee. 
The amount so collected shall be deducted on 
a percentage basis, agreed upon by the check- 
weighman and clerk, from the earnings of the 
Mine Workers engaged in mining coal and shall 
be sufficient only to pay 'he wages and legiti- 
mate expenses incident to the office, except 
where the method of payment is otherwise pro- 
vided by state law. 



If a Miitable person to act as checkweighman 
is not available among the Mine Workers at the 
mine, a man not employed at the mine may be 
selected upon mutual agreement. 

The checkweighman, or checkmeasurer, as 
the case may require, shall be permitted at all 
times to be present at the weighing or measur- 
ing of coal, also have power to checkweigh or 
checkmeasure the same, and during the regular 
working hours to have the privilege to balance 
and examine the scales or measure the cars, pro- 
viding that all such balancing and examination 
of scales shaU only be done in such way and at 
such time as in no way to interfere with the 
regular working of the mine. It shall be the 
further duty of checkweighman or checkmea- 
surer to credit each Mine Worker with all mer- 
chantable coal mined by him on a proper sheet 
or book kept by him for that purpose. Check- 
weighmen or checkmeasurers shall in no way 
interfere with the operation of the mine. 

BOTS 

No person under seventeen (17) years of age 
shall be employed inside any mine nor in haz- 
ardous occupations outside any mine, provided, 
however, that where a state law provides a 
higher minimum age, the state law shall govern. 

Exemptions Under This Contract 
The term Mine Worker as used in this Agree- 
ment shall not include mine foremen, assistant 
mine foremen, fire bosses, or bosses in charge 
of any classes of labor inside or outside of the 
mine, or coal inspectors or weighbosses, watch- 
men, clerks, or members of the executive, super- 
visory, and technical forces of the Operators. 

Management of Mines 
The management of the mine, the direction 
of the working force, and the right to hire and 
discharge are vested exclusively in the Opera- 
tor, and the United Mine Workers of America 
shall not abridge these rights. It is not the in- 
tention of this provision to encourage the dis- 
charge of Mine Workers, or the refusal of em- 
ployment to applicants because of personal pre- 
judice or activity in matters affecting the United 
Mine Workers of America. 

Mine Committee 
A committee of three (3) Mine Workers shall 
be elected at each mine. The duties of the 
Mine Committee shall be confined to the ad- 
justment of disputes that the mine management 
and Mine Worker, or Mine Workers, have failed 
to adjust. The Mine Committee shall have no 
other authority or exercise any other control, 
nor in any way interfere with the operation of 
the mine; for violation of this clause the Com- 
mittee or any member thereof may be removed 
from the Committee. 

Settlement of Disputes 
Should differences arise between the Mine 
Workers and the Operator as to the meaning 
and application of the provisions of this Agree- 
ment, or should differences arise about matters 



9759 



not specifically mentioned in this Agreement, 
or shruld any local trouble of any kind arise at 
any mine, there shall be no suspension of work 
on account of such differences, but an earnest 
effort shall be made to settle such differences 
immediately: 

First, between the aggrieved party and the 
mine management; 

Second, through the management of the mine 
and the Mine Committee; 

Third, by a Board consisting of four mem- 
bers, two of whom shall be designated by the 
Mine Workers and two by the Operators. 

Should the Board fail to agree, the matter 
shall be referred to an umpire to be selected by 
said Board. Should the Board be unable to 
agree on the selection of an umpire, he shall be 
designated by the Administrator of the National 
Industrial Recovery Act. The decision of the 
umpire in any event Bhall be final. 

District conferences may establish an inter- 
mediate board consisting of two (2) commis- 
sioners, one representing the Operators and one 
representing the Mine Workers with such powers 
IS said conference may delegate. 

Pending the hearing of disputes the Mine 
Workers shall not cease work because of any 
dispute; and a decision reached at any stage of 
the proceedings shall be binding on both par- 
ties thereto, and shall not be subject to reopen- 
ing by any other party or branch of either as- 
sociation except by mutual agreement. 

Expense and salary incident to the services 
of an umpire shall be paid jointly by the Op- 
erators and Mine Workers in each district. 



•250- 

Prefaration of Coal and Mining Practice 
Each district agreement shall provide for the 
preparation and proper cleaning of coal, 
i'roper disciplinary rules and penalties shall 
also be incorporated in such agreements. 

Safety Practice 
Reasonable rules and regulations of the 
Operator for the protection of the persons of 
the Mine Workers and the preservation of prop- 
erty shall be complied with. 

Engineers and Pumpers Duties 
When required by the management, engineers, 
pumpers, firemen, power plant and substation 
attendants shall under no conditions suspend 
work but shall at all times protect all the com- 
pany's property under their care, and operate 
tans and pumps and lower and hoist men or 
supplies as may be required to protect the com- 
pany's coal plant. 

Shifts 

The Operator shall have the right during the 
entire period of this Agreement to work all the 
mines, or any one or more of them, extra shifts 
with different crews. 

When the mine works only one shift it shall 
be in the day time, but this shall not prevent 
cutting and loading coal at night in addition 
to the day shift cutting and loading. 

Pat Dat 

Pay shall be made semi-monthly and at least 
twice each month. 



Discharge Cases 
When a Mine Worker has been discharged 
from his employment and he beheves he has 
been unjustly dealt with, it shall be a case aris- 
ing under the method of settling disputes herein 
provided. In all discharge cases should it be 
decided under the rules of this Agreement that 
an injustice has been dealt the Mine Worker, the 
Operator shall reinstate and compensate him at 
the rate based on the earning of said Mine 
Worker prior to such discharge. Provided, how- 
ever, that such case shall be taken up and dis- 
posed of within five days from the date of dis- 
charge. 

Illegal Suspension of Work 

A strike or stoppage of work on the part of 
the Mine Workers shall be a violation of this 
Agreement. Under no circumstances shall the 
Operator discuss the matter under dispute with 
the Mine Committee or any representative of 
the United Mine Workers of America during 
suspension of work in violation of this Agree- 
ment. 

Irregular Work 

When any Mine Worker absents himself from 

his work for a period of two days without the 

consent of the Operator, other than because of 

proven sickness, he may be discharged. 



Coke and Cleaning Plants 
Proper rules may be negotiated in District 
Conferences to provide for continuous operation 
of coking and cleaning plants. 

Miscellaneous Provisions 
Matters affecting cost of explosives, black- 
smithing, electric cap lamps, and house coal 
are referred to the district conferences. 

To the extent it has been the custom in each 
district, all bottom coal shall be taken up and 
loaded by the Mine Worker. 

The cutter shall cut the coal as directed by 
the Operator. 

District Conferences 

District agreements shall be made dealing 
with local or district conditions, and it is agreed 
that such district agreements shall embody the 
basic rates of pay, hours of work, and condi- 
tions of employment herein set forth, and all 
specific rights and obligations of Operators and 
Mine Workers herein recognized. 

This Agreement shall supersede all existing 
and previous contracts; and all local rules, regu- 
lations and customs heretofore established in 
conflict with this Agreement are hereby 
abolished. Prior practice and custom not in 
conflict with this Agreement may be continued. 



759 



4 



^251- 



All inteiHal (Met«ti«e8 itehetehj referred to 
the various diatricta for settlement, witii the 
onderetandiEg that only by mutual consent shall 
anything be done in district conferences that 
will increase the cost of production or decrease 
the earning capacity of the men: Provided, 
however, all yardage and deadwork rates not 
specified in this contract shall be properly 
adjusted. 

Joint Wage Confesence 
A jbint Conference of representatives of 
Northern Coal Control Association and Smoke- 
less and' Appalachian Coal Association, and of 
the International Union United Mine Workers 
ot' America, shall be held in accordance with 
the following provisions of the Code- of Fair 
Competition tor the fiituminous Coql Industry: 

"On January 5, 1934, there shall be held 
a conference between representatives of 
employers and employees operating under 
this Code, together with representatives 
of the National Recovery Administration, 
for the purpose of determining what, if 
any, revisions may be desirable at that 
time of the wages, hours and differentials, 
or any other requirements of this Code, 
on the basis of conditions then existing 
and the report of representatives of the 
National Recovery Administration made 
as hereinbefore provided. 

"Unless revised by mutual agreement, as 
the result of said conference beginning 
January 5, 1934, the hours of work, mini- 
mum rates of pay and wage differentials 
as set forth in this Code shall continue in 
effect until April 1, 1934." 



This Agreement shall become effective after 
approval by the President and on the same day 
that the bituminous coal code appUcable to the 
territory embraced herein shall become effec- 
tive, following its approval by the President; 
and it shall continue in effect until the first day 
of April, 1934. 

In witness whereof each of the parties hereto, 
pursuant to proper authority, has caused this 
Agreemeiit to be signed by its proper oflScers. 



United Mine Northehn Coal 

Workers of America Control Association 



By J. D. A. Morrow 
President 



By John L. Lewis 

President 

Philip Murray Walter A. Jones 

Vice-President Secretary 

Thomas Kennedy Smokeless and 

Secretary Appalachian Coal 

ASSOCLITION 

By E. C. Mahan 
President 
H. R. Hawthorne 
Secretary 



Joint <Sgalb CoMMirrBB 
Fof the Mine Workers: For the Operators: 
Van A. Bittner J. D. A, Morrow 

P. T. Fagan R. E. Jiimison 

Sam Caddy W. L. Robison 

Percy Tetlow R. L. Ireland, Jr. 

James Mark Wm. Emery, Jr. 

Frsnk Miley E. C. Mahan 

Wm. Tumhlazer D. C. Kennedy 

Frank Hughes H. C. Faust 

William Feeney W. A. Richards 

D. A. Reed 
Charles O'Neill 
Heath S. Clark 
W. A. Bishop 
J. D. Francis 
S. C. Higgins 
R. E. Taggart 
3. D. Brady, Jr. 



SCHEDULE A 



Basic Rates Established in the Following 
Named Districts 

Tonnage Rates 
Per 2,000 lbs. run 
of mine coal 
Western Pennsylvania 

Pitik Mining, Thin Vein $0.70 

Pick Mining, Thick Vein .65 

Machine Loading, Thin Vein .52 

Machine Loading, Thick Vein .48 

Cutting Shortwall Machine, 

Thin Vein .08 

Cutting Shortwall Machine, 
Thick Vein 



.07 



Central Pennsylvania 



Pick Mining : .70 

Machine Loading .52 

Cutting, Shortwall Machine .08 

Connellsville Pennsylvania 

Pick Mining .56 

Machine Loading .40 

Cutting, Shortwall Machine .06 

Westmoreland-Greensburg Pennsylvania 



Pick Mining. 



Machine Loading 

Cutting, Shortwall Machine. 



Thick Vein Freeport Pennsylvanu 

Pick Mining .65 

ding .48 

.07 



Machine Loading 

Cutting, Shortwall Machine 



Ohio and the Pan-Handle District 
of Northern West Virginia 

Pick Minuig ^ .70 

Machine Loading . ,52 

Cutting, Shortwall Machine .08 



The Following Hourly and Day Wage Bates 
ShaB Be^'PuK] in All Mines inixPennsylwuiia, 
Obio, and the Pan-Handle District of Northern 
West Virginia for the Classification of Occupa- 
tions Shown Herein: 

Classification of- Hourly Day 

Occupations ' Rate Rate 

Inside 

Motormen, Bock Driller $0,595 $4.76 

Driven, Brakemen, Spraggers, 
Snappers, Coal Drillers, Track- 
men, Wiremen, Bonders, 

Timbermen, Bottom Cagers 

Pumpers, Trackmen helpers, 
Wiremen helpers, Timbermen 
helpers; and Other Inside 

Labor not classified 

Greasers, Trappers, Flaggers, 

Switch Throwers .375 3.00 

Outside 
Bit Sharpener, Car Dropper, 
Trimmer, Car Bepairmen, 

Dumpers 

Sand Dryers, Car Cleaners, 

Other Able Bodied Labor 

Slate Pickers 

Skilled labor not classified to be paid in ac- 
cordance with the custom at the mine. 



.252- 

SCHEDULE C 

Basic Bates Established in the Following 

Named Districts 

Tonnage Rates 
Per 2,000 lbs. run 
of mine coal 
New Biveh 

Machine Loading $0,442 

Cutting, Shortwall Machine .075 



.575 4.60 



.545 4.36 



.48 



.45 
.375 



3.84 



3.00 



SCHEDULE B 



Basic Bates Established in the Northern 
West Virginia District 

Tonnage Rates 

Per 2,000 lbs. run 

of mine coal 

Pick Mining $0.56 

Machine Loading .40 

Cutting, Shortwall Machine .06 

The Following Hourly and Day Wage Bates 
Shall Be Paid in All Mines in the Northern West 
Virginia District for the Classification of Occu- 
pations Shown Herein : 

Classification of Hourly 

Occupations Rate 

Inside 

Motormen. Rock Driller $0,565 

Drivers, Brakemen, Spraegers, 
Snappers. Coal Drillers. Track- 
men, Wiremen, Bonders, 
Timbermen, Bottom Cagers— 

Pumpers, Trackmen helpers, 
Wiremen helpers, Timbermen 
helpers; and Other Inside 
Labor not classified .515 

Greasers, Trappers, Flaggers, 

Switch Throwers .345 

Outside 

Bit Sharpener, Car Dropper, 
Trimmer, Car Bepairmen, 
Dumpers ..._ .45 

Sand Dryers, Car Cleaners, 
Other Able Bodied Labor.. 42 

Slate Pickers .345 



Day 
Rate 



$4.52 



.545 4.36 



4.12 



2.76 



3.60 



3.36 
2.76 

Skilled labor not classified to be paid in ac- 
cordance with the custom at the mine. 



Winding Gulf 
Machine Loading . 



Cutting, Shortwall Machine 

Greenbrier 
Machine Loading.. 



Cutting, Shortwall Machine 

Pocahontas 
Machine Loading. 



Cutting, Shortwall Machine 

Tug BiVER 

Machine Loading 



Cutting, Shortwall Machine 

Kanawha 

Machine Loading 

Cutting, Shortwall Machine 

Logan 

Machine Loading 

Cutting, Shortwall Machine 

Williamson 

Machine Loading 

Cutting, Shortwall Machine 



Big Sandt-Elkhorn 
Machine Loading 

Cutting, Shortwall Machine 



.384 
.07 



.357 
.045 



.357 
.045 



.332 
.052 



.358 
.056 



.465 
.08 



Machine Loading $0,402 

Cutting, Shortwall Machine .08 

Harlan 

Machine Loading .41 

Cutting, Shortwall Machine .07 

Southern Appalachun 

Machine Loading .43 

Cutting, Shortwall Machine .08 

Virginia 

Machine Loading .408 

Cutting, Shortwall Machine.. _... .067 

The Following Hourly and Day Wage Bates 
Shall Be Paid in All Mines in the New Biver, 
Winding Gulf, Greenbrier, Pocahontas, Tug 
River, Kanawha, Logan, Williamson, Big Sandy- 
Elkhorn, Hazard, Harlan, Southern Appala- 
chian and Virginia Districts for the Classifica- 
tion of Occupations Shown Herein: 



9^59 



-253- 



Classificatioru of 
Occupations 
Inside 

Motormen, Rock Driller $0,545 $4.36 

Drivers, Brakemen, Spraggers, 
Snappers, Coal Drillers, Track- 
men, Wiremen, Bonders, 
Timbennen, Bottom Cagers 

Pumpers, Trackmen helpers, 
Wiremen helpers, Timbermen 
helpers; and Other Inside 
Labor not classified.. .495 

Greasers, Trappers, Flaggers, 
Switch Throwers .325 



Hourly Day 
Rate Rate 



.525 4.20 



Classification of 
Occupations 
Outside 



Hourly Day 
Rate Rate 



3.96 



60 



Bit Sharpener, Car Dropper, 

Trimmer, Car Repairmen, 

Dumpers .43 3.44 

Sand Dryers, Car Cleaners, 

Other Able Bodied Labor .40 3.20 

Slate Pickers .325 2.60 



Skilled labor not classified to be paid in ac- 
cordance with the custom at the mine. 



9759 



-254^ 
(RE: CAPTIVE MINES— STEEL) 

Agreement Under Section 4(a) of the 
National Industrial Recovery Act 

The undersigned (hereinafter sometimes called the Employers) are memben of tlu 
Code of Fair Competition of the Iron and Steel Industry approved by the President of 
the United States August 19, 1933 (hereinafter called the Steel Code) or are subsidiary 
or affiliated companies of such members. 

Such members of the Steel Code or their said subsidiary or affiliated companies own 
and operate mines of bituminous coal for the production of such coal for the use of the Em- 
ployers or their subsidiary or affiliated companies in operations in or related to the Iron 
and Steel Industry. 

The President of the United States on September 18, 1933, approved a Code <rf Fair 
Competition for the Bituminousu Coal Industry (hereinafter called the Coal Code) . 

The Employers desire to cooperate with the President and the National Recovery 
Administration in order to eflFectuate the poUcy of Title I of the National Industrial 
Recovery Act and to that end hereby agree with the President and between and among 
each other as follows: 

Each Employer in the operation 'of any bituminous coal mine operated by it wiU 
comply with the maximuum hours of labor and minimum rates of pay which are or shall 
be prescribed under or pursuant to the Coal Code for the district in which such mine is 
located so long as the Coal Code shall remain in effect. 

This agreement is entered into pursuant to Section 4(a) of the National Industrial 
Recovery Act as approved by the President June 16, 1933, and subject to all the term* 
and conditions fequired by Section 7(a) and Section 10(b) of said Act. 

IN WITNESS WHEREOF, the Employers have caused this agreement to be signed 
in their respective corporate names by their respective officers or representatives there- 
unto duly authorized and the President of the United States has endorsed his approval 
hereon as of the 21st day of September, 1933. 

Republic Steel Corporation, T. M. Girdler, President 

Inland Steel Co., by L. E. Block, Chairman 

Jones & Laughlin Steel Corp., Geo. G. Crawford, President 

Wheeling Steel Corp., W. W. Holloway, President 

Crucible Steel Co. of America, F. B. Hufnagel, President 

Interlake Iron Corp., by C. D. Caldwell, President 

Mather Collieries, by Pickands Mather & Co., Operators 

Pittsburgh Steel Co., H. D. Williams, President 

The Corrigan McKinney Steel Co., by Donald B. Billies 

The Youngstown Sheet & Tube Co., by H. G. Dalton, Chairman 

Columbia Steel Company, by W. J. Filbert, Director 

Gulf States Steel Co., by L. E. Geohegan, V. P. & Gen. Mgr. 

H. C. Frick Coke Company 

National Mining Company 

Hostetter-Connellsville Coke Company 

Sharon Coal & Limestone Company 

United States Coal & Coke Company 

United States Fuel Company, by Thomas Moses, President 

Tennessee Coal, Iron & R. R. Company, by W. J. Filbert, Director 

Bethlehem Mines Corp., by E. G. Grace 

Weirton Coal Company, by E. T. Weir, Chairman 



Approved: 

With the understanding that under this agreement hours, wages and working condi- 
tions throughout these mines will be made as favorable to the employees as those prevail- 
ing in the district in which such mines are located. 

(Signed) Franklin D. Roosevelt 



9759 



NATIONAL COAL ASSOCIATION 
Southern Building 
Washington, • P. C. • 
AiiALACHIAN AOREEl.ENT. 

This Ajrreement is made and entered into pursuant to the provisions of 
Section 7 (t) of the National Industrial Recovery Act. 

This Agreement made the 29th day of March, 1934, "between the Eastern 
Bituminous Coal Association, G-eorges Creek and Upper Potomac Coal Association, 
Somerset County Coal Operators' Association, VJestern Pennsylvania Coal Con- 
trol Association, Ohio Coal Control Association, Northern Panhandle of West 
Virginia Coal Operators' Association, Operators' Association of the William- 
son Field, Ei^ Sandy-Elkhorn C'Oal Operators'' Association, Hazard Goal 
Operators' Exchan^ve, E/mawha Coal Operators' Association, Logan Coal Oper- 
ators' Association, voluntary associations on "behalf of each memter there- 
of, and Harlan County coal operators signatory hereto, and Virginia coal 
operators signatory hereto, hereinafter referred to as the Operators, 
party of the first part, and the International Union United Mine Workers 
of America and Districts 2,3, 4, 5, 6, 16, 17, 19, 28, 30 and 31 herein- 
after referred to as the I'.'ine Workers and on behalf of each member thereof, 
party of the second part. (New Districts of the United Mine Workers of 
America may be established in this territory.) 

Witnesseth: It is agreed that this contract is for the exclusive 
joint use and benefit of the contracting parties, as heretofore defined 
and set forth in this Agreement; and it shall be construed as binding upon 
and effective in determining only the relations vith each other of those 
represented by the parties signatory hereto. ^t is the intent and purpose 
of the parties hereto that this Agreement vdll promote an improved industrial 
and economic relationship in the bituminous coal industry, and to set forth 
herein the basic agreements covering rates of pay, hours of work, and con- 
ditions of emplo^.TTient to be observed between the parties in the following 
districts constituting the Appalachian Territory: 

Northern Territory: - Pennsylvania, Ohio, together with Ohio, Brook, 
Hancock, and Marshall Counties of West Virginia, arid Northern West Virginia, 
including Counties of Monongalia, Marion, Harrison, Preston, Taylor, Bar- 
bour, Randolph, Upshur, Lewis, G-ilraer, Braxton, Webster, and that portion 
of Nicholas County containing coal or coal mines along the line of the 
B. & 0. Railroad. 

Maryland the Upper Potomac District, including Grant, Mineral and 
Tucker Coionties of West Virginia are in Northern Territory but Schedule C 
of the Code of Fair Competition applies to these Districts. .., 

Southern Territory: - The State of Virginia, Northern Tennessee, that 
part of Kentucky-' lying east of a line dra^-m north and'south through the 
City of Louisville, and that part of West Virginia not included in Northern 
territory. 

MAXIMUl/1 HOURS AilD WORKING TIME 

Seven hours of labor shall constitute a day's work. The seven-hour 
day means seven hours' work in thu mines at the usual working places for 



9759 



all clf:sses of labor, excl-usive of tne lunch period, whether they be paid 
by the day or be paid on the tonnage basis; except in cases of accident 
which temporarily necessitates longer, hours for those Mine Workers re- 
quired on account thereof; and also .excepting that number of Mine Workers 
in each mine Hiose daily work includes the Handling of man-trips and those 
who are required to remain on duty: while m,en are entering and leaving 
the mine. 

The seven-hour day, five-day week. (35 hours per week) , as provided 
in this A^rreement, shall prevail. 

The followin-r: classes of I'.ine Workers are excepted from the foregoing 
provisions as to the maximum hours of work: ' 

All Mine Workers engaged in the transportation of men and coal shall 
work the additional time necessary to handle man-trips and all the coal in 
transit, and shall be paid the regular hourly rate. Outside employees en- 
gaged in the dum.ping, handling and preparation of coal, and the manufacture 
of coke, shall work the additional time necessary, not to e:xceed 30 min- 
utes, to dump and.-pr.epare the coal .delivered to the tipple each day, and t 
complete the usual duties incidental: to the operation of coke ovens, and 
shall be paid the regu.lar hourly rates. This rule shall not encourage the 
working of overtime ex.cept -v.^here. it is absolutely necessary to t.ake care 
of the conditions named. 

'jJhen day men go into the mihe in the morning they shall be entitled 
to two hours' pay yhether or not the rriine works the full two hours, but 
after the first two- hours the men sn;'.ll be paid for every hour thereafter 
by the hour, for each hour's vrork or fractional part thereof. If for any 
reason the regular routine work can not be furnished inside day men, the 
employer m.ay furnish other than the: regular work. 

Drivers shall take their .mules to and from- stables, and. the time re- 
quired in so doing snr-ll not include any. part of the day's labor, their 
work beginning v/hen they reach the cnange at which they receive empty cars, 
but in no case shall the. driver's time be (Jock.ed while he is waiting for 
such cars, at the point namedi The method at present existing covering \ 
the harnepsing and unharnessin.g ,of mules snail be continued throughout 
the life of this Agreement. 

Motormen and trip riders shall be at the passway. where they receive 
the cars at starting time. The time required to take motors to the pass- 
way at starting time and departing from the same at quitting time shall 
not be regarded as part of the day's labor, their time beginning when 
they reach the- change or parting at which they receive cars, but in no 
cnse shall their time be docked while waiting for cars at the point named. 

Employees engaged at pov/er houses, sub-stations and pumps operating 
continuously for -24 hours daily are especially exempted from-- the seven- 
hour day provision. Special exemptions for otrier individual employees t . 
than those named above, vhen 24 hours cojvti/iuous operation daily is re- 
quired, are subject to arrangement between the mine management and dis- 
trict officers r Employees so especially exempted are limited to eight 
hours per day and 40 hours per v;eek. ' ■ 



^£57" 

HOLIDAYS 

Holidays to be recognized are referred to the various district con- 
ferences for settlement. 

BASIC TOMAGS RATE 

Pick mining is the removal b;- the miner of coal that has not been ' 
undercut, center-^cut or overcut by a machine. The basic rate for pick 
mining and hand loading of coal shall include the work req^uired to drill, 
shoot and clean and load the coal properly, timber the working place, and 
all other work and customs incidental thereto. 

A maximum shortwall machine differential of eleven cents (ll^?^) per 
net ton between pick and machine mining rates shall be maintained. 

Any change in m.ining methods or installation of equipment that relieves 
the MineW-orker of any of the above duties and increases his productive 
capacity shall be recognized and a piece work rate agreed to therefor 
properly related to the basic rate. 

The standard for basic tonnage rates shall be 2,000 pounds per ton; 
where the gross tons of 2,240 pounds is the measure the equivalent rate 
shall be paid. 

The basic tonnage, hourly and day wage rates for the various producing 
districts represented in this conference are shown in the attached Sched- 
ules, A and C, which are parts hereof. 

Yardage and dcadwork rates in all districts shall be increased nine 
(9) per cent. 

CHECKWEIGHIi'^EK 

The I/ine V/orkers shall have the right to a checkweighman, of their 
own choosing, to inspect the weighing of coal; provided that where mines 
are., not now equipped to weigh coal a reasonable time may be allowed to so 
equip such mines; and provided that in any case where on account of physi- 
cal conditions and mutual agreement wages are based on measure or other 
method than on actual weights, the Mine Workers shall have the right to 
check the accuracy and fairness of such method, by a representative of 
their own .choosing. 

Cars shall be tared at reasonable intervals and without inconvenience 
to the operation of the mine. Tare shall be taken of the cars in their 
usual running condition. 

At mines not employing a sufficient number of men to maintain a 
checkweighman the weight credited to the Mine Workers shall be checked 
against the billing weights furnished by railroads to the Operators, 
and on coal trucked from such mines a practical method to check the 
weights shall be agreed upon. Such ^weights shall be checked once a month. 

The wages of checkweighman will be collected through the pay office 
semi-monthly, upon a statement of time m^ade by the check^weighman, and 

9750 



approved ty the Vine Comniittee. The aT-Pi-irit so collected shall be deducted 
on a percentaf:e basis, agreed upon by the checkweighman and clerk, from 
the earnings of the Mine vrorkers engaged in mining coal and shall be 
sufficient only to pay 'the wages and legitim.ate expenses incident to the 
office, except -"here the method of pn^Tnent is otherwise provided by state 
law. 

If a suitable person to act as checlcweighman is not available among 
the r/ine workers at the mine, a man not employed at the mine may be se- 
lected upon m,utu?;l agreement. 

The checkreighmai-, or checlcm.easurer , as the case may require, shall 
be perrrdtted at all times to be present at the v'eighing or measuring of 
coal, also have power to checkweigh or checl-imeasure the same, and during 
the regular working hours to have the privilege to balance and examine 
the scales or. measure the cars, providing taat all such balancing and 
examination of scales shall only be done in such way and at such time as in 
no way to interfere witn thj regular working of the mine. It shall be the 
further duty of the checi-cweighraan or checkmeasurer to credit each Mine 
Worker with all merchantable coal m.ined by him. on a proper sheet or book 
kept by himi for that rurpose. Gheckiveighmion or checloneasurers shall in ^ 
no way interfere with the operation of the mine. (^ 

BOYS 

!To person under seventeen ( 17) years of age shall be employed inside 
any mdne nor in ha?.ardous occupations outside any mine, provided, however, 
that where a state law provides a higher minimuin age', the state law shall 
govern. 

EX3I«':FTI0NS UNDER THIS CONTR/ICT. 

The term If.ine V/orker as used in this Agreement shall not include Mine 
foremen, assistant mine foremen, fire bosses., or bosses in charge of any 
classes of labor iriside or outside of the mine, or coal inspectors, or 
weigh-bosses , wntchm.en, clerks, or members of the executive, . supervisory, 
• nd technical forces of the Operators. 



MANAGEMENT OF I IITES 

The m.anagement of the mine, the direction of the working force, and 
the right to hire and discharge are vested exclusively in the Operator, 
and the United Mine Vt'orkers of America shall not abridge these rights. 
It is not the intention of this provision to encourage the discharge 
of i-ine '-'orkers, or the refusal of emplo^yTnent to applicants because of 
personal pre.iudice or activity in matters affecting the United Mine 
Viforkers of America. 

MINE COMf'ITTES 

A Committee of three (3) Mine Workers, wac shall be able to speak 
and ■onderst^nd the English lan^juage, shall.be .el-^cted at each mine by the 
Mine Workers employed at, such rai^e. Bach member of the Mine Committee 
shall be an employee of the mine at which m is a committee member, and 
snail be eligible to serve as a committe-;; member only so long as he con- 
tinues to be an employee of said. mine. The duties of the Mine Committee 
shall be confined to the adjustment of disputes arising out of this 

9750 



I 



-1253- 

Agreement that the mine management and Mine Worker, or Mine Workers, 
have failed to adjust. The Mine C-ornrr.it tee shall have no other authority 
or exercise any other control, nor iu any way interfere with the operation 
of the mine; for violation of this clause any or all merahers of the Com- 
mittee may te remioved from the Com.raittee. 

SETTLE¥E1>TT OF DISPUTES. 

Should differences arise between the Mine Workers and the Operator 
as to the meaning and application of the provisions of this Agreement, 
or should differences arise .atout matters not specifically mentioned in ■ 
this Agreement, or should any local trouble of any kind arise at any mino , 
there shall be no suspension of Vv'ork on accoxint of such differences, but 
an earnest effort shall be made to settle such differences immediately. 

First, between the aggrieved party and the mine management; 

Second, through the management of the mine and the Mine Co.mmittee; 

Third, by a Board consisting of four members, two o.f whom shall be 
designated by the Mine Workers and two by the Operators. 

Should the Board fail to agree, the matter shall be referred to a» 
umpire selected by said Soard. Should the Board be unable to agree on 
the selection of an umpire, he shall be designated by the Administrator 
of the National Industrial Hecovery Act, The decision of the umpire in 
any event shall be final. 

District conferences may establish an interm.ed iate board consisting 
of two (2) commissioners, one representing tiie Operators and one represent- 
ing the Mine Workers with such powers as said conference may delegate. 

Fending the hearing of disputes the Mine Workers shall not cease 
work because of any dispute; and a decision reached at any stage of the 
proceedings shall be binding on both parties thereto, and shall not be 
subject to reopening by any other party or branch of either association 
except by mutual agreement . 

Expense and salary incident to the services of an um.pire shall be 
paid jointly by the Operators and Mine Workers in each district. 

DISCHARGE CASES 

When a Mine Worker has been discharged from his employment and he 
believes he has been urijustly dealt vdth, it shall be a case arising 
under the method of settling disputes. herein provided. In all discharge 
Cases ibouldit be decided under the rules of this Jigreement that an 
injustice has been dealt the Mine Worker, the Operator shall reinstate 
and compensate him at the rate based on the earning of said Mine Worker 
prior to such discharge. Provideci , however, that such case shall be 
taken up and disposed of within five days from the date of discharge. 



9759 



-1360- 
ILLEGAL SUSPENSION OF WORK 

A strike or storipaiP;e of '.vork on the part of the Mine Workers shall te 
a violation of this Agreement. Under no circumstf^nces shall the Operator 
disr.uss the matter under dispute with the Iviine Oomrnittee or any represent- 
ative of the United bine ''I'Drkers of America during suspension of work in 
violation of this A.j'reemer.t . 

IRREGULAR WORK 

ViThen any Vdne Woi-Ver absents himself from his work for a period of 
two days without tne consent of the Operator, other thpn hecause of proven 
sickness, he may he, discharged. 

FREFARATIOI' OF COAL AND l/;iNING PRACTICE 

Each district agre-:ment shall provide for the preparation and proper 
cleanin- of cor,-l. Proper disciplinary rules and penalties shall also be 
incorrorated in such arre^'ments. 

S.^lFETY PRACTICE 

Rensonahle rules and re'^latioiis of the Operator for the protection 
of the persons of the Mine Vi'orksrs and the .preservation of property shall 
he complied with. 

ENGINEERS AND FUl/iPER3 DUTIES 

When required , by the manag.ement^ engineers, pumpers, firemen, power 
plant and subst.ati,on attendants shall under no conditions suspend work 
but shall at all times protect all. the company' s property under their 
Care, and operate fans and pumps and lower and hoist men or supplies as 
may be required to protect the company s coal plant. 

SHIFTS 

The Operator shall have the rifht durin;^ the entire period of this 
Agreem.ent to work all the mines, or any one or more of them., extra shifts 
v.'ith different crews. 

When the mine v/orks only one snift it snail be in the day time, but 
this snail not prevent cutting and loading coal at night in addition to 
the day shift cutting and loading. 

Fay day 

Fay shall be made semi-monthly and at least twice each month. 

COKE A1.D CLEANING PLANTS 

Proper rules may be negotiated in Dit:trict Gonferences to provide 
for continuous operation of coking and clLanifj,'; plants. 



975: 



-261- 
Iv:1 3CELLANS0US PROVISIONS 

r.'-atters affecting' cost of explosives, blacksmithing, electric cap 
Ifjir.ps, and house coal are referred to the district conferences. 

To the extent it h-is been the c-ustom in each district, all bottom 
coal shall be taken up .and loaded b,-; the i.'ine Worker. 

The cutter shall cut the coal as directed b,^^ the Operator. 

DISTRICT C01IFE3ENGE3 

District agreements shall be made dealing v/ith local or district 
conditions, and it is agreed that such district agreements shall embody 
the basic rates of pay, hours of Vi'ork, and conditions of employment herein 
set forth, and all specific rights and obligations of Operators and Mine 
Workers herein recognized. 

This Agreement shall supersede all existing and previous contracts; 
and all local rules, regulations and customs heretofore established in 
conflict with this Agreement are hereby abolished. Prior practice and 
custom not in conflict with this Agreem.ent may be continued. 

All internal differences are hereby referred to the various districts 
for settlement, with the understanding that only by mutual consent shall 
anything be done in district conferences that will increase the cost of 
production or decrease tne earning capacity of the m.en. 

Proper arrangements for collections for the United Mine Workers of 
America shall be made in District Conferences. 

JGIHT I'TORTH-SOUTH DIFFERENTIAL COMMISSION 

A joint commission of eight representatives of operators and eight 
representatives of mine workers is established to investigate the differ- 
entials on tonnage and day wage rates existing oetveen the Northern and 
the Southern Districts. 

The Northern operators shall be represented by one raemiber of the 
com.mission from each of the foliov/ing organizations: 

Coal Control Association of Western Pennsylvania; 
Eastern Bitumiinous Coal Association; 

Ohio Coal 'Control Association. 

Should Northern West Virginia Coal Association become a signatory 
hereto a representative from it shall be named. If Northern West Vir- 
ginia Coal Association does not become signatory, the fourth representa- 
tive of the Northern operators shall be chosen by the three selected 
by the associations namied above. 

The Southern operators signatory hereto agree to designate four 
representatives to serve on the Joint North-gouth Differential sommission. 
Such m.embers of the comn ission shall be fully representative of the 
Southern fields, 

9750 



The United Mine l"orkers of America agree to designate eight members 
of the Joint North-Soiith Differential Commission to te made up of foior 
mine workers from the northern fields and four mine workers from the 
southern fields. 

The Coiiipission shall report its reco;n"iendations to the joint con- 
ference hereinafter piovided to meet Fetraary 18, 1935. 

The e.^-rense of tl.'.s cor.mi-ision shall te "borne jointly as follows: 
One-fourth l\v tue Northern operators, one-fourth "by the Southern opera- 
tors, and one-half b^; the mine workers. 

The Appalachian r;.£;e Conference jointly recomm,ends, to N.R.A. that 
the Bituminous Ccal C0J.3 Unit of the Planning and Research Division be 
continued for the purpose of assembling and compiling proper statistical 
data for the use of the Joint liorth-South -Uiff erential Commission. 

AIFiV LACKIMI JOIl'T CONFERENCE 

. A Joint Gnuference of representatives of the Eastern Bitum.inous 
Coal Association. Creorgei. Cre?k and Upper Potomac Coal Association, 
Somerset County Coal Operators' Association, Western Pennsylvania Coal 
Control ii-ssociation, Ohio Coal Control Association, Northern Panhandle 
of West Virginia ©oal Operators' Association, Operators' Association of 
the Williamson Field, Big Sandy-Elkhorn Coal Operators' Association, 
Harlan County coal operators signatory hereto, Hazard Coal Operators' 
Exchange, KanawhaCoal Operators' Association, Logan Coal Operators' 
Association and Yirginia coal operators signatory hereto, and the Inter- 
national Union United Mine Workers of America and Districts 2, 3, 4, 5, 6, 
16, 17, 19, 28, 30 and 31,. shall be held in the City of Washington-, D.C., 
February 18, 1935, to consider what revisions, if any, shall be made in 
this Agreement as to hours, wages and conditions of employment, '^nd to 
establish such differentials between districts as the Conference finds 
in the rerort of the Joint North-South Diff ereiitial Commission, herein- 
before provided for. 

This A;-;reement snail be submitted to the ^Pi'esident for his approval 
under the terms of the Bituminous Coal Code applicable to the territories 
embraced herein. 

This Agreemont shall become effective April 1, 1934, and shall con- 
tinue in effect until March 31, 1935. 

Ir: '-'itne^.s whereof each .of the parties hereto, pursuant to proper 
autnority, nas causeddthis Agreement to be signed by its proper officers. 

UNITED MINE T'ORKERS OF Al.'iERICA CHaRLES O'NEILL 

WALTER A. JONES 

JOI{]:I L. I'Jw'IS Eastern Bituminous Coal Association • 

President 

ANDREW B. CRICHTON 

PHILIP f.'URRAY WL. W. HILL 

Vice Pr.jsident .>-cr.^e3 Creek c- Upp'^r i^otomac Coal Assn. 



9759 



THOlfAS KEm-IEDY 
Secretary-Treasurer 



jaiv;e3 lark 

President Dist. 2 



FRAMK HUGHES 
President Dist. 3 



WILLIAIv HTrlES 
President Dist. 4 



F. T. FAGM 
President l)ist . 5. 



PERCY' TETLOf 
President Dist. 6 



JAlvES E. JONES 
President Dist. 16. 



VAl-I A. BITTl'IER 
President Dist. 17 



WILLIAlv: TURlffilAZER 
President Dist. 19 



DALE ■STAPLSTON 
President Dist. 28 



SM. CADDY 
President Dist. 30 



FRANK MILEY 
President Dist. 31 



^263-^ 



TELFORD LETJIS 
Somerset County Coal Operators' As; 



J. D. A. MORROW 
BYROF H. C^IOII 
Western Pennsylvania Coal Control Assn. 

R. L. IRELAITO, JR. 

D. F. HURD 
Ohio Coal Control Association 

J. M. VEST 
J. J. ARDIGO 
Opers. Assn. of Williamson Field 

E. R. PRICE 
THOIviAS S. HAYMOND 

Big Sfindy-Elkhorn feoal Operators' Assn. 

WM. W. MILLER 
Hazard Coal Operators' E::change 

D. C. KEII!?EDY 
Pvpnawha Coal Operators' Association 

HERBERT E. JOIMES 
H. A. IvicALLISTSR 
Logan Coal Operators' Association 

WILLIA!,'. TAYLOR 
Northern Panhandle of West Virginia Coal 
Operators' Association 



HASLAi: COAL OPERATORS 



H. B. PERICINS 
(Signatory for all Harlan companies parties to this Agreement.) 

VIRGINIA COAL OPERATORS 

Stonega Coke & Coal Co., J. D. ROGERS, Vice President 

C. B. NSEL 
(Signatory for all Virginia companies parties to this Agreement.) 



9759 



-264-- 
SCHEDULE A 

BASIC Rates established IM the FOLLOTii'Il^G HAMED / 
DISTRICTS 

Tonnage Rates per 2,000 
lbs. run of mine coal 
.WESTEffiJ FEN1M3YLVANIA 

Pick I.'ining, Thin Vein $0.80 

F ick Ivining, Thick Vein .75 

J/^achine Loading, Thin Vein .60 

Iv.achine Loading, 'J^iiick Vein .56 

Cutting Shortwall iv:achine, Thin Vein .09 

Cutting Shortwall I«'ach-ine, Thick Vein .08 

CENTRAL PENNSYLVANIA 

Pick Mining ' ' .80 

Machine Loading .60 

Cutting, Shortwall Machine .09 

, ■ ; SOUTHERN SOMERSET COUNTY , PENNSYLVANIA 

Pick Mining . . .80 

Machine Loading .60 

Cutting, Shortwall Machine .09 

' ' .. _ CONNELLSVILLE PENNSYLVANIA 

Pick Mining .66 

*'achine Loading •■ .48 

Cutting, Shortwall Iv.achine _ ,. , , ^ ,07 

WESTMORELAiJD-ORSENSBURG PENNSYLVANIA 

Pick Mining . ' .75 

Machine Loading .56 

Cutting, Shortwall Machine . . -08 

THICK VEIN FREEPCRT PENNSYLVMIA 

Pick Mining .75 

Machine Loading . . .56 , 

Cutting, Shortwall Machine .08 

OHIO Al^ID THE FAI^-HANDLE DISTRICT 
OP NORTHERN '.VEST VIRGINIA 

Pick Mining .80 

Machine Loading .60 

Cutting, Shortwall Machine .09 

The followinr- Hoi::rly ar.d Day W.,;t;e Rates Shall l)e Paid in All Mines 
in Pennsylvania, Ohio, and the Pan-Hf,ndle District of Northern West Vir- 
ginia for the Classification of Occupations Shown Herein: 
9759 



SCHSDULS A - Page ?.. 

Clas sification of Gcc-upati oicS Hourly Day 

^■ate late 
Inside 

■^'otormen, Hock Driller pO.737 15.16 

Driver's, Brakemen, Spragprers, 

Snappers,, Coal Drillers, Trackmen, 

Wiremen, Bonders, Timbermen,' Bottom Cagers .714 5.0^ 
Fiarripers, Trackmen helpers, VJiremen helpers, 
Timtermen helpers; and Other Inside Labor 

not classified .58 4.76 

Greasers, Trar-pers, Flag^^ers, Switcn Throwers .486 3.40 

Outside 

Bit phkrpener, Car Dropper, Trimmer 

Car 'Hepaii'men, Dumpers .606 4.24 

Sand Dryers, Car Cleaners, 

Other Able Bodied Labor ■ .571 4.nn 

Slate Pickers .466 3.40 

Skilled Labor not classified to be paid in 

accordance with the custom at the mine 



9759 



-266- 
- SCHEDULE C 

BASIC HATES ESTABLISHED IK THE i-XLLO'-'IKO KAlv'.ED 
DISTRICTS. 

Tonnage Rates per 
2,000 Its, run of 
mine coal 
LiARYLAiro Ain: UPIER F0TOt.:AC DISTRICT, INCLUDING 
C-HAKT, ivii:-ERAL AliD TUCKER COUTTIES OF WEST 
VIRaiHIA 

All -Seams Except Bakerstov;n and Waynes"bui-g 



Pick Mining 
Machine Loading 
G^uttin^, Shortwall Lachin^ 
Cutting, Arcwall Iv'ichine 



$0,722 
.53 
.09 
.058 



Bakerstovn Seam 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 

Cutting, Arc^vall Machine 



.78 
.65 
.09 
.058 



TiVpynesburg Se;iin 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 

Cutting, Arcwall Machine 



.78 
.60 
,09 
.058 



KANAWHA 



Machine Loading 

Cutting, Shortw;,ll Machine 



.502 
.08 



Machine Loading 

Cutting, Shortwall Machine 



LOGAN 



WILLIAlilSON 



.412 
.062 



Machine Loading 

gutting, Shortwr-11 Machine 



.438 
.066 



BIG SANDY-ELKHOHN 



Machine Loading 

Cutting, Shortwall Machine 



Machine Loading 

Gutting, Short'.vall Machine 



HAZARD 



.545 
.09 



.482 
.09 



9759 



SCHEDULE C - Pase P. 

Tonnage Rates per 
2,01^0 lbs. nan of mine 
coal 

HiLHLA^I 

Machine Loading • $0.49 

Cutting, Shortwall Machine .08 

VIRGINIA 

Machine Loading .488 

Cutting, Shortwrill Machine .077 

The following Hourly and Day Wage Hates Shall be Paid in All Mines 
in the Maryland and Upper Potomac District, Including Grant, Mineral and 
Tucker Counties of West Virginia; Kanawha; Logan; Williamson; Big Sandy- 
Elkhorn; Hazard; Harlan; and Virginia -Districts for the Classification 
of Occupations Shov.Ti Herein: 

Classifications of Hourly Day,. 

Occupations Hate Hate 

Inside " ' 

Motorraen, Hock Driller 50.68. .^4.76 

Drivers, Brakemen, Spra.-v.<ers, Snappers, Coal 
Drillers, Traci-anen, Wiremen, bonders, 
Timb-rTien, Bottom Cagers .6r>7 4.60 

Pumpers, Trackmen helpers, Wiremen helpers, 
TimberiTien helpers; and Other Inside Labor 

not claf=sified ■ .6S3 4.36 

Greasers, Tranpers, Fla.ggers, Switcn Tarov:ers AP-8 3.00 

Outside ,' . ■ , , ,. 

Bit Sharpener, Car Dropper, Trir.r.er, Cpr 

Hepairm'en, Diip-ipers ' ., -548 3.84 

Sane" Dryers, C^r Gleaners, Other Able. Bodied ' - 

Labor . ■ .514 3.60 

Slate Pickers .4?B 3.00 

Skilled labor not classified to be paid in accordance with the 
custom at the m.ine. 



9759 



-258- 

APPE NDIX PR 
UillLi.:AL r.ECLVE^Y ;J)i.iIlvTISTRATlLN 
MARCH 31, lb'35. RELEASE NO. 10753 



After the repi'esentatives of the Coal Operators and the United Mine 
Workers had inforned th--^ iJational Industrial Recovery Board that they 
would agree to its TJropos'Tl to amend the Bitoininous Coal Code so as to 
extend the operation of all of its provisions to June 16, 1935, Donald 
R. Eichberg, Chairman cf the Board, made the following statement to 
those present: 

"In hehalf, and by direction, of the Board I wish to express our 
deep appreciation of tne service T'hich both o^^rties have no rendered 
to their industry and to the peonle of the United States, 

"■//e unders + anc that the selfish interests of many involved might 
have dictated a refusal to agree, or at least an ef-fort to attach 
conditions or qualifications to an acceptance. But you have both 
given a prompt unqualified and generous assent, 'Ve believe that a 
consideration of the public interest has been dominant in your 
action. For this you are entitled to Dublic gratitude. 

"le feel that the committee of the Coal Operators can speak 

with considerable assurance the wishes of their group; and that '"e 

C'X rely ut)on their agrcf^ment being carried out by all the respon- 
sible members of the industry. 

;Ve are glad to kno^-' from Mr. Lewis that the Policy Committee of 
the United Mine Workers has unanimously aoproved their agreement. We 
wish to e^-press our particul-ac appreciation of the responsibility 
which they have accepted in speaking for some 400, nnn workers. It is 
difficult to ascertain or to follow the individual wishes of so many 
men; and their leaders must accept a serious and burdensome obligation 
of maintaining united action in a matter of such vital imiDortance to 
each individual raembero The renresentatives of the United Mine Workers 
demonstrate courage and leadership when . they accept the need of dis- 
appointing the expectations of thousands of workers in order to do 
that which will serve the -oublic interest, even though in the long 
rion it should also serve the interest of their members. All of the 
memotrs cf the National Industrial Recovery Board, and I am sure the 
Coal Operators also, appreciate the value of this public service rendered 
:;y the representatives of the United I''ine Workers, 

"May I say also that, in the ability of all parties to get together 
and in thpir willine^ness to aid the representatives of the government, 
we see a hope for further improvement in the conditions of this industry 
through carrying for-ard this effective cooperation, Fn^m the work done 
today there should be a renewed confidence throughout trade 
and industry in a steady improvement of business conditions and labor 
relat ions throughout the country, " 

S759 



AFPEiaiX ss . 

NATILKJ^i COAL A3SCCIATICN 

Southern Buildi ng 

WASH I -GTOiM, D. C. 

APPALACHIALm' AGREEr^ESIT 

This agreement made the 26th day of Seoteraber, 1935, between the 
Eastera Bituminous Coal Association, Georges Creek and UtDper Potomac 
Coal Association, Somerset County Coal Operators' Association, Western 
Pennsylvp.nia Coal Control AssocicTtion, Ohio Coal Control Association, 
Michigan Co^l Operators' Association, northern Panhandle of West, 
Virginia Coal Ooer^ tors' Associatio;;, Torthern '..'est Virginia Subdivisional 
Coal Association, Operators' Association of thp TJilliamson Pielt? , Big 
S gmdy-Elkhorn Coal Operators' Association, Hazard Ccnl Operators' 
Association, Kanawha Coal Ou^rators' Association, Lo-r^n Coal O-oerators' 
Association, Southern Apioal-^chian Coal OrieratorE' Ai soci^tion, IJe^-! 
Hiver Coal Operators' Association, Pocphontas Operators' Associfltion, 
Winding Gulf Operators'. Association, Greenbrier Coal Operators' Asso- 
ciation, voluntary associ't inns on behalf of each inemuer thereof, and 
Harlan County, Kentucky, coal orjerators signatory hereto, and Virginia 
coal onerat ors signatory hereto, hereinafter referred to as the O-oerators, 
narty of t]a-e, first part,- and the International Union United Mine Workers 
of American and Districts ?,3,4,.5, d,1o,17,19,24, 28,30, and 31, herein- 
after refe-rred to as the Mine Workers and on behalf of each member 
thereof, oar ty of the second part. (lie-" Districts of the United Mine 
Workfrs of America r.^y be established in this territory.) 

Vifitnesseth: It is agreed that this contract is for the ercclusive 
joint use and benefit of the contracting parties, p,s heretofore defined 
and set forth in this Agreement; and it shall be construed as binding 
upon and effective in determining only the relations with each other of 
those. represented by the parties signatory hereto. It is the intent 
and purpose of , the parties hereto that this Agreement mil promote an 
improved industrial and economic relationship in the bituminous coal 
industry, and to. set forth herein the basic agreements covering rates 
of pay, hours of work, aid conditions of employment to be observed 
between. the parties in the following districts constituting the 
Appalachian Territory, 

northern Territory: - Pennsylvania, Michigan, Ohio, together with 
Ohio, Brook, Hancock -nd Marsbill Counties of West Virginia, and 
Norther West Virginia, including Counties of Barbour, Braxton, Calhoion 
Doddridge, Gilmer, Harrison,: Jackson, Le--'is, Marion, Monongalia, 
Pleasants, Preston, Randolph, Ritchie, Roane, Taylor, Tyler, UiDshur, 
Webster, Wetrel, Wirt, Wood, and that portion of ITicholas County in- 
cluding mines served by the Baltimore and Ohio Railroad and north, 
Maryland and Upper Potomac District, including Grant, Mineral anc! 
Tucker Counties of West Virginia, 

9759 



•■ -270- 

Southern Territory: - The, State of Virginia,, Northern Tennessee, 
that part of Kentucky lying east of a line drawn north and south 
through the City of Louisville, and that part of '.7est Virginia, not 
included in Northern Territory, 

HAXII Ulvl HOIJP.S AND .(Or.KING TII";£ 

Seven hours of laboi- shall constitute a day's work. The seven- 
hour day means seven hours' work in the mines at the usual working 
pla.ces for '^l 1 classes of lahor, erclusive of the lunch period, ivhether 
they he paid by the day or he paid on the tonnage basis; e:;cept in 
cases of accident which temporarily necebsitates lon>-"'er hours for those 
Mine V/orkers required on account thereof; aad also excepting that 
number, of I/ine 'vVorkers in each mine ^jhose daily --'ork includes the handling 
of man-trips and those who are required to rpinain on duty 'iiile men are 
entering and leaving the mine. 

The seven-hour day, five-d^y we^-k (55 hours per week), as provided 
in this Agreement , sh'ill prevail. 

The following classes of I.'ine Workers are excepted from the fore- 
going provisions as to the maximum hours of work: 

All Mine //orkers engaged in the transportation of raen and coal 
shall v;ork the additional time necessary to h,andle man-trips and all 
the coal in transit, and shall be paid the regular hourly rate. 
Outside employees engaged in the dumping, handling and preparation of 
coal, and the mah"af picture of coke , sh? 11 'work the addition-^l time 
necessary, not to exceed SO minutes, to dump and prepare the coal 
delivered to the tipple each shift, and complete the usual duties 
incidental to the operation of coke ovens, and shall be paid the 
regular hourly rates. This rule shall not encourage the working of 
overtime except where it is absolutely necessary to take care of the 
conditions named. 

.Then day men j-o into the nin"^ in the morning they shall be en- 
titled to two hours' pay '"hether or not th- mine works the full two 
hours, but after the first t"p hoars the men shall be paid for every 
ho^ar thereafter by the hour, for each hoars' work or fractional part 
thereof. If for any reason the regular routint- work C"n not be 
famished inside day men, the employer may furnisTi other than the 
reg^lai' work, 

Drivers shall talce their mules to and from, stables, ^nd the time 
re-^uired in so doing 'shall not include any part' of the day's labor, 
their work beginning when they reach the change at which th^y receive 
empty cars, but in' no case shall the driver's time be docked while 
he is '"aiting for such cars' at the' point named. The method at present 
existing covering 'the harnessing and unhar'nessing of mules shall be 
continued throughout the life of this Agre-S^nt. 

Motormen and trip riders shall be nt tne oasswgy w'nere they receive 
the cars at starting time, Th" time repaired to tak^ motors to the 

9759 



pass^ay at starting time and devnrtin-:^ from the same at quittiri;?; time 
shall not he reg-'irded as part of the day's lahor, their time bf'ginning 
when th-'-y reach the chan^^e or loarting at T*Lich they receive cars, hut 
in no case shall their time be docked while waiting for cars at the 
pointed named. 

Emplo^'ees engaged in power houses, sub-stations and pumps oper- 
ating continuously for £4 hours daily are es-oeci^lly preempted from the 
seven-ho-ur day provision. Special exenntions for other individual 
employees than those namedaoove, when 24 hours continuous operation 
daily is reouired, are Juoject to arrangement bet'^^een the mine manage- 
ment and district officers, £raplo;/ees so especially erempted are 
limited to eight ho-'ors per day and 40 hours per week. 

HCLIDAiS 

Holidays now recognized in v^irious District Agreements shall 
be effective during the period of this Agreement. 

BASIC -TOiHiAaS HATE 

Pick mining ia the removal by the miner of coril that has not been 
undercut, center-cut or overcut by a machine. The basic rate for pick 
mining and hand loading of coal shall include the work required to 
drill, shoot and clean and load the coal properly, timber the working 
place, and all other work and customs incidental thereto, 

A maxim^om shortw-^11 machine differential of elevfn cents (11>-^) 
■per net ton between nick and machine mining rates shall be maintained. 

Any change in m.ining me■^hcds or installation of equiriment that 
relieves the Wine 'Jorker of >any of the aoove daties and increases his 
■oroductive capacity shall be recognized and a -oiece work rate agreed 
to therefor properly related to the basic rate. 

Tne standard for basic tonnage rates shall be 2,000 pounds per ton; 
where the gross ton of 2,240 pounds is the measure the eauivalent rate 
shall be paid. 

The basic tonnap-e, hourly and day wage rates for the various pro- 
ducing districts represented in this conference are shown in the 
atta.ched Schedules, -rfhich a.re parts nereof. 

Yardage and a eadwork rates in all districts shall be increased 
ten (10) per cent. 

CHECKV/£IGHIv.£I\i 

The feine '.Vorkers shall have the right to a che cki^e i ghman , of their 
own choosing, to inspect the weighing of coal; provided that in any 
case where on account of physical conditions and mutual agreement 
wages are based on m^^asure or other method than on actual weights, 
the kine '.orkers snail hive the right to check the accuracj'' and fair- 
ness of such method, by a representative of their own choosing, 

9759 



"272- 

Cars shall be tare^ at reasonable intervals and without inconvenience 
to the operation of the mine. T-^.re shall be taken of the cars in their 
usual running condition. 

At mines not employing a sufficient number of nen to maintain a 
checkweighma,n th? weight credited to the Mine,, -Workers shall be checked 
against the billing yiveii^-hts furnished by railroads to the Operators, 
and on coal trucked fron such mines a practical method to check the 
weights shall be agreed uoon. Such vreights shall be checked once a 
month. 

The wages of clieck^reighmen will be collected through the nay office 
semi-monthly, upon a statement of time made by the checkweighman, and 
approved by the Mine Connittee. The amo-ont so collected shall be de- 
ducted on a percentage basis, agreed upon by the che ckwe i ghman and 
clerk, from- the earnings of the Mine ",^'orkers engpged in mining coal 
and shall be sufficient .only to pay the wages and legitimate expenses 
incident to the offices 

If a suitable person to act as checkweighra,an is not available 
among the Mine TJorker's at the mine, a man not employed at the mine may 
be selected upon mutual agreement. 

The checkweighmnn,. or checkmeasurer , as the case may require, shall 
be permitted at a11 times to be present at the weighing or measuring 
of coal, also h-^ve power to checkweigh or checkmeasure the same, and 
during the regular working hours to have the privilege to balance and 
examine the scales or measure the cars, providing that all such balancing 
and examination of scales shall only be done in such wqy and at such 
time as in no way to interfere with the regular working of the mine. 
It shall be the further duty of the checkweighman or checkmea.surer to 
credit each Mine Ivorker with all merchantable coal mined by him on a 
proper sheet or book kept .by him for tnat purpose. Checkweighmen or 
checkmeasurer s shall in no way interfere with the operation of the mine. 

BOYS .'■'■'' 

No person under seventeen (17) years of age sn-'ll be employed 
inside any mine nor in hazardous occupations outside any mine, provided, 
however, that where a state law provides a higher rainim-um age, the 
state law shall govern. , . • , 

MEIPTIONS UNDER THIS CONTRACT 

Th" terra I ine '.7orker as used in this Agreement shall not include 
Mine foremen, assistant mine foremen, fire bosses, or bosses in charge 
of any classes of labor inside or outside of th'=' mine, or coal insoectors, 
or weigh-bosses, v-atchraen, clerkf;, or m^^mbers Q-f' the executive, suuer- 
visory, and technical forces of the Operators. 

I:.AIIAGEIAH;rT 0? I I^^S 

The management of the mine, the dirfction of the working force, and 

9759 



-27o- • 

the right to hire and discharge are vested exclusively in the Operator, 
and the United Mine '.Vorkers of American shall not abridge these rights. 
It is not the intention of this orovision to encourage the discharge of 
Mine "orkers, or tn^- refus-l of eraploynent to applicants hecause of 
personal prejudice or activity in matters affecting the United Mine 
Workers of America, 

KlliZ com ITTE£ 

A Committee of three. (3) Mine Workers, who shall te ^hle to speak 
and understand the English language, shall be elected at each mine by 
the Mine Workers employed at such mire. Each member of the Mine Com- 
mittee shall be an employee o^ the •^iiie at which he is a committee 
member, and shall be eligible to serve as a committee member only so 
long as he continues to be an employee of said mine. The duties of 
the Mine Committee shall be confined to the adjustment of disputes 
arising out of this Agreement that the mine management and Mine ''.'orker, 
or Mine VJorkers, have fniled to adjust. The Mine Committee shall ha^-e 
no other authority or exercise any other control, nor in any vny interfere 
with the ODeratioi'. of the mine; for violation of this clause any or 
all members of the Committee rr.ay be removed from the Committee. 

SETTLEI.iENT OF DISPUTES 

Should differences arise between the Mine Workers and the Operator 
as to the meaning and apolication of the provisions of this Agreement, 
or should, differences a.-'ise about matters not specifically mentioned 
in this Agreement, or snould ary loc-1 trouble of giy kind arise at 
any mine, there shall bp no suspension of work on account of such 
differences, but -^n earnest effort shall be made to settle such dif- 
ferences imriediately: 

First, between the aggrieved party and the mine management; 

Second, throu<r:h the mana-^ement of the mine a,n9 the Mine Committee; 

Third, by a iSoard consisting of four members, t^^o of whom shall 
be designated ty the Mine Workers and two Dy the Operators. 

Should the Board fail to agree, the matter shall be referred to an 
umnire selected by said Board. Should the Board "be unable to agree 
on the selection of an umpire, he shall be designated by the International 
President of the United Mine Workers of America and the President 
of th(> Operators' association affected. The decision of the umnire in 
any event snail be finale 

District conferences may establish an intermediate board consisting 
of two (2) commissioners, one representing the Operators and one repre- 
senting the Mine './orlcers vdth such powers as said conference may delegate. 

Pending the hearing of disputes the "Mine V/orkers shall not cease 
work because of any dispute; and a decision reached at any stage of the 
proceedings shall be binding on both parties thereto, and shall not be 
subject to reopening by any other party op branch of either association 

9759 



except by raiitiial .•^.gr'=ement. 

Exoense and salary incident to the services of an urn'oire shall he 
paid jointly by the Operators and Mine '.Workers in each district. 

riSGHAHG.E CASES 

T-Tien a Iviine '.'orker has been dischargr-d from his employment and 
he believes he has beer unjustly dealt with, it shall be a case arising 
under the Tiethod of settling disputes herein provided. In all discharge 
cases should it be decided under the rules of this Agreement that an 
injustice has be.^n dealt the Mine Worker, the Operator shall reinstate 
md compensate hxn at the rat? based on the ea.rning of said Mine Worker 
prior to such discharge. Provided, ho-rever, that such case shall be 
taken j.p and disposed oi ii^ithin five days from the date of discharge. 

ILLEGAL S7SPSNGI0N O" ;/GPK 

A strike or <;toppage of work on the part of the Mine TTorkers shall 
be a violation o;f t'lis .'agreement. Under no circumstances- shall the 
Operator d3 f.::uss the matter zander dispute with the Mine Committee or 
any representative of ths United Mine Workers of America during susToen- 
sion of wci'k in violation of this Agreement. 

lEEEC-UL-J^ WOHK 

■j.hpn auy Minp Worker abserts hir^self from his ^-ork for a oeriod 
of trvo days without the consent of the Operator, other thfn because 
of -oroven sickness, he nay be discharged, 

PREPAKATIOI OF CO.^ .lira MUTING PP.ACTICE 

Each district q^Teement shall nrovide for the preparation and 
proper denning of coal. Proper disciplinary r^iles and penalties 
shall be incorporated in such agreements, 

SAFETY PPACTICE 

Reasonable rules and regi-ilations of the Ooprator for the protection 
of the persons of the Mine Workers and the pres'^rvation of property 
shall be complied with<, 

ElIGMEERS AND PL¥iPERS DUTIES 

'.ihen required by the management, engineers, plumpers, firemen, 
cower plant and substation attendants shall -under no conditions suspend 
.work but shall at all times protect all the company's property under 
their care, and operate fans and p-omps md lower and hoist men or 
supplies as m-^y be required to protect th'-^' comorny's coal plant. 

SHIFTS 

The Operator shall have the right duj.-in,:: the >--ntire period of this 
Agreement to work all the mines, or ''.iiy o^^' or more of them, extra shifts 

9759 



with different crews. 

When the mine works only one shift it shnl 1 be in the d^y time, 
hut this shall not prevent cutting and loading coal at night in 
addition to the day shift cutting and loading. 

PAY DAY 

Pay shall be made semi-monthly and at least twice each month. 

COKE AUD CLEANING PLANTS 

Proper rules may -be negotiated in District Honferences to provide 
for continuous operation of coking and cleaning' plants. 

MSCELLANEOUS PROVISIUIS 

Matters affecting cost of explosives, blacksmithine, electric cap 
lamps, and house coal are referred to the district conferences. 

To the extent it has been the cvistom in e-'ch district, all bottom 
coal shall be taken up and loaded by the l ine TTorker, 

The cutter shall cut the coal as directed by the Operator. 

DISTRICT CONFE^i;NC£S 

District agreements shall be made dealing with local or district 
conditions, and it is agreed that such distriot agre-'nents shall embody 
the basic rates of pay, hours of work, and conditions of employment 
herein set forth, mi all specific rights and obligations of Operators 
and Mine Vilorkers herein recognized. 

This Atgreement shall supersede all existing and previous contracts; 
and all local rules, re,galations ?ind customs heretofore established in 
conflict with this Agreement are hereby ■ abolished. Prior practice and 
custom not in- conflict with this- Agreement may oe continipd. 

All internal differences are hereby referred to the various 
districts for settlement, with the understanding that only by mutual 
consent shall anything be done in district conferences that will in- 
crease the cost of production or decrease the ecirning capacity of 
the men. 

Proper arrangements for collections for the United Mine'Torkers 
of America shall be made in District Conferences. 

DIFFERENTIALS 

Within fifteen days after the signing of the Appalachian Joint. 
Vfage Agreement the Joint Sub-Scale Com.mittee of sixteen (16) of this 
Conference shall meet at the time and place designated bv the Chairman. 
The Committee shall there and then forthwith draft plms, set up the 
machinery and establish the procedure- to dispose of the disputes before 

9759 



this Conference as to tonnage and dpy i^age rate differentials and 
fix; the. time limits within which final determination of all such dis- 
putes shall be made, which in no event shall be later than February 
1, 1936. 

In the event the Committee is unable within three (3) d;y s to 
agree upon any matter or matters' connected with the performance of this 
duty, the question !=-± issue shall be immediately laid before a Judge of 
the Supreme Court of the District of ' Coliunbia, and his decision, after 
hearing, shall be final and immediately effective, No decision as to 
rules, regulations or procedure on the uart of any Commission, Board, 
Committee or Tribunal selected to dispose of this differential problem 
shall impose a reduction in tonnage, yardage, deadwork, or dfiy mage 
rates on the mine workers affected. 

In the pvent a report requiring changes in differentials is made, 
the Appalachian Conference shall be reassembled on or before Fpbrxxary 
1, 1936, to make effective -such revisions, 

. . ■ : . APPALACKIAiv JOIKT Coi^£K£NC£ 

4 Joint Conference of representatives of the Eastern Bituminous 
Coal Association, Georges Creek and Upper Potomac Coal Association, 
Somerset County Coal Operators' Association, 'Vestern Pennsylvania Coal 
Control Association, Ohio Coal Control Association, I'ichigan Coal 
Operators' Association, northern pRnliandle of Est Virginia Coal Operators' 
Association, Northern TJest Virginia Subdivisional Coal Association, 
Operators' Association of the 'Jillianson Field, Big_ Sandy-Elkhorn Coal 
Operators'- AssociatiohV Hazard Coal Operators' Associai- ion, Kanawha 
Coal Operators'. Association, Logan Coal Operators'.. Association, Southern 
Appalachian Coal Operators' Association, New River Coal Operators' 
Association, Pocahontas Operators' Association, T/iriding Gulf Operators' 
Association, Greenbrier Coal Opera,tors' Association, Harlan County, 
Kentucky, coal operators signatory hereto, and Virginia coal operators 
signatory hereto, and the International Union United Mine 7orkers of 
American and Districts 2, 3, 4, 5, 6, 16, 17, 19, 24, 28, Sn and 31, 
shall be held in' the City of New York, N.Y., February 17, 1937, to 
consider what, revisions, if any, shall be pipde in this Agreement as to 
hours, wagea and conditions of emplo^onent. 

This Agreement shall become effective October 1, 1935, and shall 
continue in effect to April 1, 1937, 

In witness whereof each of the parties hereto pursuant to proper auth- 
ority, has causfrd this Agreement to be signed , by. its proper officers. 

NOTE 

Signed by representpt ives of all districts except Harlan, Hazard, 
Virginia, and Southern Appalachian, 

1:30 A.M., Seiotember 27, 1935- 

9759 •■'*•. 



SCHEDULE A 
Basic Rates established in the following named Districts: 

Western Pennsylvania 

Pick Mining, Thin Vein 

Pick laininfj, Thick Vein 

Machine Loading, Thin Vein 

Machine Loading, Thick Vein 

Cutting Shortwall Machine, Thin Vein 

Cutting Shortwall Machine, Thick Vein 



Central Pennsylv,ania 



Pick Mining 

Machine Loading 

Catting, Shortfall Machine 



Southern Somerset County, Fennsylv^xii; 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 



Connellsv ille, Pennsylv ania 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 



Westmoreland-Greenshurg, Pennsylvania 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 



Thick Vein Free port , Pennsylvnnia 



Pick Mining 

Machine Loading 

Cuttiijg, Shortwall Machine 



Tonnage Rates 
Per 2,nnn lbs. 
Run of Mine Coal, 



.84 
.68 
.64 
.10 
.09 



.89 
,68 

.in 



.75 

.56 
.08 



.84 
."64 
.09 



.84 
,64 
.09 



Northern T,'est Virginia 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 



,75 

,585 
.085 



9759 



S(JH£IfUlE A 
(Continued) 



Ohio and Pan-Handle District 
of Northern '-/est Virg-inia 



Pick Mining 

Machine Loading 

Cuttinf, Shortwall Machine 



.89 
.68 
.10 



Michigan 



Pick Mining 

Machi.ne Loading 

Cutting, Shortwall Machine 



1.102 
,851 
.151 



Mechanical Loadinr, Conveyor Dpvices 
and Strip Pits 

Seventy cents ($.70) per day increase shall be applied to all 
miners employed- on a day or ho^orly rat e on mechanical loading and con" 
veycr devices, and to all employees engaged in production in strip pits. 

Where tannage, footage or yardage rates are paid on conveyors or 
otner mechanical loading devices, the percentage of increase to he added 
to such rates shall he the s'ame percentage of increase as is applied 
to t,he basic loading and cutting rates, 

. The following hourly and Day Vv'sge Hates shall be paid in all mines 
in the Pennsylvania, Ohio, i/iichigan. Northern Pan Handle of West Virginia, 
and the Northern '.Vest Virginia. Districts for thp classification of occupa- 
tions Eho"'n herein: ■■ . ■•..-:, .. 



Inside 



Clasrdf icat ion of 
Occupations 



Hourly 
Rate 



Day 
Rate 



'otormen. Rock Driller 



$.809 



$5.66 



Dri.vers, Brakemen, Spraggers, Snappers, 
CoaJ. Drillers, Trackmen, Wiremen, 
Bonders, Timberraen, Bottom Cagers 



5.50 



Pumpbers, Trackmen Helpers, '"iremen ■.•.■.'..■'...•.,■.■.. ■.'■, 

Helpers, Timbermen Helpers, and other 

inside labor not classified .751 

Greasers, Trappers, Flaggers, Smtch Tnrowers .557 



5.26 
3.90 



9759 



SCHEDITT.E A 
(Continued) 



Clpissif ication of 
OccupationE 



Outside 



Hourly 
Pate 



Day 
Hate 



Bit Sharnener, Car Drcnner, Trimmer, 
Car Reoairmen, D'amners 



.677 



4.74 



Sand Dryer, Car Cleaners, Other 
Able Bodied Labor 

Slate Pickers 



,643 
,557 



4,50 

3.90 



Skilled labor not classified to be oaid in accordance with the custom 
at the mine. 



SCHEDULE B 

Basic Rptes established in the following named Districts: 

i'.aryland and Uoper Potomac 

District, Including Grant, t.ineral 

and Tucket Counti es of ..est Virginia 

All Seams except Bakerstown and ..aynesburg 



Tonnare Rates 

per 2,r)nn lbs. 

Pun of Mine Coal 



Pick Alining 

Machine Loading 

Cutting, Shortwall fechine 



Bakersto'-n Seam 



Pick J/fining 

Machine Loading 

Cutting, Shortwall Machine 



Pick Mining 

Machine Loading 

Cutting, Shortwall Machine 



Wayne sburg Seam 



,812 

.61 

,in 



.87 
.73 
.10 



.87 
.68 
.10 



9759 



SCHEDULE B Tonnage Rates 

(Continued) per 2,000 lbs. 



Machine Loading 

Cutting, Shortw^ll Machine 



Machine Loading 

Cutting, Shcrtwall Machine 



Machine Loading . 

Cutting, Shortfall Machine 



Machine Loading 

Cutting, Shortwall Machine 



Machine Loading . 

Cutting Shortwall Machine 



Kana^fha 



Logan 



TTilliamson 



jig Sandy- Elkhorn 



Hazard 



Karl an 



Machine Loading 

Cutting, Shortwall Machine 



Virginia 



Machine Loading 

Cutting, Shortwall I'achine 



Southe rn App-ilachian 



Machine Loading 

Cutting, 'Shortw-'ll Machine 



New liiver 



Machine Loading 

Cutting-, Shortwall lachine 



PQp.ahontasrT ag: River 



Machine Loading 

Cutting, Shortwall Machine 

9759 



■Run of Mine Coal 



582 
,09 



,492- 
,072 



,518 
,076 



625 
10 



562 
10 



,568 
.087 



.59 
.10 



.602 
.095 



,517 

,065 



Machine Loading 

Cutting, Short wall Machii 



-281- 



SCHEDiHE B 
(Continued) 



findinp" Gulf 



Greentrier 



.544 
.09 



Machine Loading 

Cutting, ShortvTall Machine 



.552 
,075 



Mechanical Loading, Conveyor Devices 
and Strip Pi ts 

Seventy cents ($.70) per day increase shall be aoplied to all miners 
employed on a day or hourly rate on mechanical loading !3id conveyor devices, 
and to all employees engaged in production in striD pits. 

Wliere tonnage, footage or yardage rates are paid on conveyors or 
other mechanical loading devices, the oercentp^ge of increase to he added 
to such rates shall he the same percentage of increase a.s is anplied to 
the hasic loading and cutting rates. 

The following hourly and day wpge rates shall he Daic in all mines 
in the Marj'-land and Upper Potomac District, including Grant, Mineral 
and Tucker Counties of 7,'est Virginia; Kanawha, Logan., Tfilliamson, Big 
Sandy-Elkhorn, Hazard, Harlan, Virginia. Soathern Aooalachian, New 
River, Pocahontas-Tug Kiver, "inding Gulf, Grefnhrier, Harlan and 
Virginia District for the Classifications of occuoations shcm herein; 



Classifications of 
Occupations 



Hourly Hate 



Day Rate 



Inside 

I'Otormen, Rock Driller 

Drivers, BraJcemen, Spraggers, Snoopers, 
Coal Drillers, Trackmen, TJiremen, Bonders, 
Timhermen, Bottom Cagers 

Pumpers, Traclanen Helpers, '.Tiremen 
Helpers, . Timhermen Helpers, and Other 
inside labor not classified 



$.751 



$5.26 



5.10 



Greasers, 
Throwers 



Trappers, Flaggers, Switch 



.50 



3.50 



9759 



-282- 



SCPLEDULE B 
(Continaed) 



Classification of Hourly Rate - Pay. Rate 

Occupgj i ons , _. , ; r ,-,,..,,■... ..--i/. ■ ■ 



Outside 



Bit Sharpener, Car Dropper, Trimmer, . ., ■ 

Car Repairmrn, ]>Ljupers _.62 . r-..'. .;.,, 4,34, 

San Dryers, Car Cleaners, Other Able . ... ,..^.- 

Bodied Labor • .586 ' '" 4.10 

Slate Pickers .50 3.50 

Skilled labor not clasbified to be paid in accordance with the custom ( | 
at the mine. 



y.0 



9759 



-233- 
A?PBgIiIX 



N.R.A. 

Legal Research October 21, 1935. 



IvEMORAiroUlvi OF LAff COlTCSaiTIlIG THE EFI^ECT 
OF Ihjl SCH^CHTER sec I si Oil UPON SLCTIOHS 
4 (a) and 7 (b) of luI.R.A. 



Q:aestion 
A letter from U. \I. Si7ift dated October 21st reads as follows: 

"I would very greatly appreciate your pre- 
paring for this Unit as soon as circumstances 
will permit a memorandum of law on the following 
subject: 

'Effect of Schechter decision upon 

Sections 4 (a) and 7 (b) of IIIRA. '" 

No statement of facts are given. 

Discussion 

Sections 4 (a) and 7 (b) of the original II. I.R.A. read as follows 

"Sec. 4. (a) The President is authorized to 
enter into agreements with, and to approve volun- 
tary agreements between and among, persons engaged 
in a trade or indixstry, labor organizations, ajid 
trade or industrial organizations, associations, 
or groups, relatirig to any trade or lnd\istry, if 
in his judgment such agreements will aid in effec- 
tuating the policy of this title with respect to 
trajisa.ctions in or affecting intersta.te or foreign 
commerce, and "ill be consistent with the require- 
ments of clause (2) of subsection (a) of section 
3 for a code of fair conpetition." 



9759 



-284- 



"Sec. 7. (t) The President slinll , so fpr r.s 
practicpl^'le, Jifford ev(3r7 op-o'brtiinity to emoloyers 
and employees in my trrde or indtistrv or subdivi- 
sion tlieraof pith respect to T,-^hich the conditions 
referred to in clauses (l) rnd (2) of su'osection 
(r..) prevail, to est-blish "uy nutunl ajreenent, the - , 
standards r-s to the raaximuin hours of lahor, ninira'cm 
rates of oay, p.nd such other condition;;, of er-roloy- 
raont as nay be necessary in such trade or industry 
or suhdivision thereof to effectuo,te the policy of 
this title; and the standards established in such 
agreements, 'rhen o,-0|jroved by. the President, shall 
have the sarne effect as p. code of fpir competition, 
ap'oroved b,y the President uno.er subsection (a) of , 
section 3t" 

The original Act vrrs mended 'jy Conj-Tiress on June 14, 1935. Sec- 
tion 1 of the Amendment orovides for a,n e.v:teusion of the Act until 
April 1, 1956. Section 2 of the Amendment reads as follcTs: 

:•■■ .■• "Sec. 2. All the provisions of. Title I of 

such Act deleratint; -oor-er to the President to ap- 
prove or irescribe codes of faur com;oetition and 
■orovidinA' for the enforcement of such codes are 
herebj'- renealed: Provided., That the exemption pro- 
vided in section 5 of such title shall extend only 
to agreements and rction thereunder (l) ^luttlng 
into effect -the reqiiirements of ' section 7 (aOt i^"" 
cludinr: mini7.Tuui "r-'es, m-^ximura hours, and ••prohibi- 
tion of child Ifbor; and (2) prohibiting unfair 
cormetitive practices vrhich offend against existing 
la^T, including the anti-trust Ir^TS, or uhich con- 
stitute tmfadr methods of competition under the 
Federal Trrde Commission Act, as amended." 

Full cognizpiice should he taken of thi;") amending statute ^-jhen 
making any discussion or considering Sections 4, (a) and 7 (b). It is 
the last expression of legislative vill upon the 'subject end specifi- 
cally declares that all the provisions giving the President po^Ter to 
prescribe or enforce codes 6f fair competition are repealed. This en- 
-.ctraent effectively disiDOses of all such provisions in the original 
Act, including Section 3» 

Speaking' from a strict and limited legal vievrooint, the tvro Sec- 
tions under consid oration are still in existence. The Schechter deci- 
sion did not specifically declare them invalid, nor did Congress reiDoal 
them. Whatever validity these sections may have, there should be no. 
dis8g;reement to the assertion that these sections are still on the 
statute books. Hot having been declared invalid by the Courts, ergo, 
they are -oresump.bly valid. The e:-tent of this validity Fould depend, 
in the final analysis, upon a Court's decision. Until such a decision 
is made any statement relative to the extent of their validity would 
de-oend largely upon the o-oinion of the writer. 



9759 



Section 4 {a) concerns itself i-'ith volu-ntrry r,t;Teements uhich may 
be approved by the President if, in his opinion, "such agreenents will 
aid in ef fectua,tin;5 the p'olicy of this title * * *". This Section con- 
tains no stateiient or exoression ps to Fhat shall ue contained in these 
agreements except that they rrill "aid in eff ectuatin..:; the policy of 
this title". This phro-se apparently has an important hearing upon this 
Section. Such oolicy, if'pjiy, is contained in Section 1. As strted hy 
the Supreme Court in the Schechter decision on pr'^e 13 (tera;D«): 

"* * * As the Government crndidly srys in its 
orief: 'The rrords 'nolicy of this title' clearly 
refer to the 'policy' which Conj-jress declared in 
the section entitled 'Declaration of Policy' - 
Section 1. All of the policies there set forth 
■ooint tc-7-^rd v single goal — the rehabilitation 
of industry pxii. the industrial recovery rrhich un- 
questionably was the major policy of Con":ress in 
adopting the National Industrial Recovery Act.'" 

The broad conceptions of industrip.l rehribilitation contained in 
Section 1 is the polic^^ i7hich is to be effectua.ted by the agreements 
contemplated under Section 4. This Sectio;\ was the srune one used r:S 
a declara.tion of policy for the Codes, This concltxsion is strengthened 
by "the fpct thpt the phrase heretofore quoted v-s used in both Section 
15 and Section 4. Therefore, the reriarks that the Suorerae Court ha,s 
made relative to Section 1 would have great pertinency in determining 
its present meaning. On -opge 12 (temn.) of the Schechter decision, 
the Court stated: 

" Por ? statement of the authorized objectives 
and content of the 'codes of fair competition' we 
are referred repeatedly to the 'Declaration of 
Policy' in sectim one of Title I of the P.ecovery 
■ Act. Thus, the approval of a code by the President 
is conditioned on his finding thr t 'it v/ill tend to 
effectuate the policy of this title', * * ♦ * id. 
The 'policy herein declared' is manifestly that 
set forth in section one. That declaratio:a embraces 
a broad rrnge of objectives. Ai.iong them we find the 
elimination of 'unfair cor-ppetitivo practices', Sut 
even if this clause were to be taken to rela.te to 
pr/ictices which fall under the ban of existing laws, 
either common or statute, it is still onl-y one of 
the authorized aims described in section rine." 

Under Section 4, whp.tever "will old in effectuating" the general 
purposes of Section 1 may be included in these agreements. The only 
restrictions placed upon the contents of these agreements by Section 
4 (a) i's the "monooolies -and monopolistic practices" iDrovision of 
Section 3. It might even be contended that this limitation was elimi- 
nated by the Supreme Cotirt because th:; Court specifically declared that 
Section 3 was invalid. The fact that Section 3 and Section 4 are so 
closely in -pari mrteria would cast considerable doubt ui:)On the efficr.cy 



9759 



"286- 



and vplidity of Section 4. The fol].o\7ing eir^ression on page 15 (terrrp.) 
l)y the Supreme Court ai^pep.rs to strengthen that doulDt: 

"But these restrictions ler.ve virtually untouched 
the field of ' nolicy envisaged "by section one, and, 
in that v;ide field of legislative possihilities, 
the -roroponents of a. code, refraining fron moitopo- 
listic designs, nay roam at \;ill and the President 
rnay ap-)rovo or disapprove their proposals as he may 
see fitc That is the precise effect of the further 
finding that the President is to nake — that the 
Code '\7ill tend to effectu.ate the -oolicy of this • 
title'. While this is called a finding, it is really 
hut a statement of an opinion as to the general effect 
upon the promotion of trade or industry of a scheme of 
law. These are tho only findings ^Thich Congress has 
made essential in order to put into operation a legis- 
lative code having the aims descrioed in the 'Declara- 
tion of Policy'" . 

Particular attention should he drawn to the interioretation of the 
phrase "effectuate the policy' of this title". The 'court held that 
this wa,s an. opinion, not a finding. The -ohrase is used in hoth Sec- 
tions 3 and 4. Thus, it \70uld apperr that, aside fron the "monopolies 
and monopolistic" phrase and possibly Sections 6 (a, h) and 7 (a), 
there oxe no limitations u"oon what shall he contained in these agree- 
ments. The proponents of an agreement may "roam at will" .in the wide 
field of lahor, trade, rid industrial rehahilitative possihilities 
envisaged hy Section 1, and the "President :ary rpprove or disaroprove 
these -oroDOsals f^s he nay see fit". 

The really redeeming aj:id distinguishing feature resides in the 
fact that the codes were raandcatory, and hecane penal laws; the agree- 
ments r-re voluntary, and no Penalty for violrtion is attached. In 
many respects the agreements h-ave a contractual reserahlance, in some 
res-:)ects they reseiihle treaties. TJhcther or not this Section 4 (a) 
adds anything to -orevious suDsisting law is a matter not under con- 
sideration. However, the agreements contemplated by Section 4 (a) 
being -ourely voluntary, the courts wo-old probably never be required to 
consider the question of delegation of power, and the entire discus- 
sion on that -ooint remains more or less theoretical aaid abstract. The 
Federal Trade Commission has held many trrde practice conferences cul- 
minating in agreements similar to those contem-olated under Section 4 
(a). No specific statute directs that such meetings shall be held or 
agreements signed. Moreover it is difficult to place such an inter- 
pretation on Section 5 of the Federal Trade Commission Act. never- 
theless it is done, desoite the lack of statutory authority. 

The Schcchter decision did not change the status of Section 4 (a)» 
YHiatever validity it had prior to that ti'ie, it still retains. 



9759 



~287- 

Section 7 (b) -orovides in prru that the Presiuent should pfford 
every op-oortiuiity for eni'iloyers and erroloyees to "estrblish "by niatual 
agreement" certain strndards of laboring conditiojis. Hights of con- 
tract, with respect to such conditions, "between e-roloyers nxid era-^iloyees, 
is more or less an inherent ri-ght. The phrase allowing the President 
to affort an op-oortunity is a euphonious eupheuisra. Eowevor, it does 
appear that only those 'j.-^rties respecting the collective "bargaining 
clause and the clause outlawing "yellow dog" contrrcts (which clauses 
rre conta.ined in Section 7 (r) pre the ones who nn,y tnlce advantage of 
Section 7 ("b)« TJo to this joiut the Section docs not seem to have any 
legal o"bjection. Thus for onl?/ a voluntary agreenent is contemplated. 
Such voluntary agreements are also conteuplated "by Section 4 (a). 3ut 
Section 7 ("b) then states that when such la'bor conditions are esta"blished 
"by agreement and. ap-o rove 1 by' the President, the conditions shall "become 
standards and " shall have tlie saxiia effect as a code of frdr conioetition 
arjproved "by the PresiLi.ent under sunsection (a) of Secti on 5"» 

Prior to the Schechter decision there - -ere two intoripretations 
advanced res^ectiu"; this Section. One 'ts - the agreement bound all 
those who signed it, ■■nd no others , in the same majiner a^s a contract; 
it could he. enforced at'^:a,inst t"he signers in the saxie manner a.s a code, 
a viola.tioh in interstate commerce "being a. \iisdenea„nor; "but the Presi- 
dent's .approval rmst have "been o"btrined "before it was a binding contract. 
The other interoretation advanced was - the a.greejient, when approved 
by the President, "oecame bi-idi-v," on all members -^nd erroloyees of that 
industry in the fame rna.nner as a Cede; tha.t those members who did not 
sign were bour.d in the same manner as a dissenting minorit;.'' was bound 
by a code, thus the signers were borjid by contract and the dissenters 
by the mandatory strictures of a» code. 

In view of tbo lajig-aa.ge used in this Section, and interpreting 
that language in tlie light' of the entire Act, the writer was_ oersonally 
inclined to'-'.ard the latter interpretation, because the first interpre- 
tation was merely a reitera.tion of then existing la.w and added nothing 
thereto (aside from the doubtf\il question of Federal enforcement of 
hours -ind wa^ies). Obviousl],'- Congress intended that the ".hrase -under 
consideratio:: should be given its full natural effect, and the first 
inter"3retai.tion did not carry out this rale of st'-tutor^r construction. 

The objection to either of t^iese interpretations a.rises from the 
fact that neither takes into consideration Public Resolution lie, 26 
or the Schechter decision. The first pairt of the Schechter decision 
clearly indicates that the President would be er-zercising an unconsti- 
tutional delegation of po^-'er if he a.tte:j)->ted to give to such .agreement 
the effect of a- code, and Public xles-Qlution Ho, 2S clean'ly states that 
"all provisions of Title I of such iict delegating power to th.:: Presi- 
dent to approve or prescribe coi.'.es'of fair competition and providing 
for the enforcement of such codes rre hereby repealed," _-., 

The nhra.se "same effect as" has never received a. judicial inter- 
pretation. Uebster's definitions of the" two wo"-':- when combined mean 



9759 



~23.G- ■ 

"IdenticrJ. consequence". Section 7 ("b) does not stp.te tha.t the agree- 
ment shall be a code of fair coinioetition., 'out states that it shall 
have the sane effect 'as a code of fair competition-. 

Thus, v/hether based on the Schochter decision or on Public Reso- 
lution Noo 26, the conclusion is vrell nigh inescapable that certain 
parts of Section -7 (b) hrve no force a,nd effect. Tolcing into consid- 
eration the amending act and. the Schechter decision, it is necessary 
to delete at least the last phrase: 

"end the standards established in such agreeBients, 
when approved by the President „ shall have the spjne 
effect a,s p. code of fair corapetition, ap :)roved Isy 
the President under subsection (r.) of section 3." 

TThen this is done, the ouestior^s arise - TTnat is left? Cnxi the 
section be so deleted and still remain effective? The rema.inder merely 
states that em-olcyees and employers "ho qurlify may "establish by mutual 
agreement" certain conditions of labor. ' It does not even state that ^1 

a contrp.ct is to be consumnftod bet^-reen the ":iarties. ' The, statute says 
"establish b-/ mutiial rgreement" . In Portland Terminal Co. et al v. 
Boston & liaine R. R. . 144 Atl. 390 (laiue 1929) the court had under con- 
'sideratron a statute using the rrord "agreement", rjid refuting the in- 
ference of contract, the court said a.t p» 393: 

" * * * They rely in support of this claim on the 
la'.7 of contracts, and invoke the nell recognized 
orinciple tha.t yjhen one of the parties to a con- 
tract signs a nriting and the other orally accepts 
it, both a,re boimd. Bishop on Contracts (Enlarged 
Ed.) i 342; r.nd TJilliston on Contracts, vol. 1, s 
90 a. 

"We are not convinced that this contention caJi 
be sustained. The question hero is not one of the ^^ 

la.n of contrpcts. but of statutory ccnstruction . \§ 

pjid the -Qroper nerning to be ascribed to the \-'ords 
'written agreement' in the light of context and 
siibject- matter involved. The question is not whether 
the Boston & Ilaine Railroad is 'bound' to the Jlaine- 
Central Railroad Corapa;;iy or the Partland Terminal 
Corrrppn:/ and liable in a suit at lp,w upon its con- 
tract, but whether ;oroiportionate chrarges by the ter- 
minal coimTan,'"" hove been fixed by an agreement within 
the terms of the statute \7hich still exists and can 
be enforced in this proceeding. 

"It is a fundrjriental rule in the construction 
of statutes that, miless inconsistent with the plain 
meaning of the enactme-it,, words and iDhrases shall be 
construed according to the common meaning of the 
laji,";uage, and technical words and -ohrases, and such 
a,s have a peculiar me.-^iiing, convey such technical 

9759 



9759 



c^ni pecuD.iar me?jiing. R, 3. c. 1, s, 6, In nnd of 
this major rule is the rule thr.t legrl terms rre pre- 
siiraed to he used Mccordin'; to their legp.l signifi- 
c-^iice, ilcLellpn v. Lu:it. 14 Lie , 258 

" 'Af:reem3nt' is defined hy ITetster ps: ^A concur- 
rence in on engagement that sj:^i3ething shall oe done or 
omitted; an exchange of promises; mutual -understrnding, 
arrangement or stipulation.' It is 'the Irnguage en- 
Dodying recrorocal -riromises.' 

"Mr. Uilliston, in hi?, work on the lav of contracts, 
vol. 1, page 2, s. 2, srys: 'An agreement is a^i expres- 
sion h:/ two or more persons of assent in regprd to some 
present or future performance hy one or more of them. 
Agreement is in some respects a ''dder torn thrn contract. 
It covers executed sales, gifts, and other transfers of 
pro-oerty. It rlso covers -oronises to '-■-hich the la^r attaches 
no legal obli, j.-tlon. ' 

"In Sage v. Uilcox, o Conn. 81, 35, it is srid: 
'The -Tord "pgree;:iGnt," in its poimlrr rjid -unusual signi- 
fication, means no more than concord; the union of t\70 
or more minds; or a concurrence 9f vie\-^s and intention 
* * * This concord or union of minds, jn^y "be lar.-ful or 
imla- ful: 'yrit h consider r tic -., or ^rit hout; creatin.?: rn 
phli.'-at ion^ or no ohli — tion. Still. o->r the universal 
undi^i-strndin- of ma^ikind. -proved hy daily and houxly con- 
versc-.tion. it is an a;:ree:]cnt. ' 

"And continuing, the rriter of this o-oinion says: 
'If the inouiry be mr,de, ^rhether there exists an agree- 
ment, \7hich the la.iT rill enforce, the subject matter 
limits the signification of the term "pgreement," mid. 
gives it a nev^ p,nd. peculiar raepning. The question does . 
not regard the Dro-^d and comoreherjsive intendment of the 
term.p nor its usual and oopular acceptation; hut the ob- 
ject of inquiry is, an agreement of a s-oncial nature, 
distin^^iished by a legrl .consideration, and enforcible 
in a court of justice. * * * The mind, influence by the ■ 
popular ond more familiar use of the term 'agreement,' 
considers the Ian as pointing to promises only; but if, 
from a:iy soiirce it a;opears that the consideration was 
meant to be embraced, the peculiar and technical sense 
of a legal r.nd suf '-icient co:itract, is seen to hrve been 
intended. * * * The nord "o-reement." if there be nothing 
to limit its me^nin,'^-. re-r r ds promises only, and not 
their comiderrtion, 

" 'i.greement' has received multi;3le definition and 
construction in the courts of this conjitr^^ and England, 
illu.strrt ing both the brord and coi.rprehensive sco-pe of 
the term in its usixal ajid general use rnd its limited 
significance in the light of context and subject-matter 
to v;hich it has reference. It does not seem necessary 



here to nrlze the o:>ai'^usti/e revie-'-r neccssrxy to 
point out the di-stinctions and repsons cop.trolling 
the ucny constructions -olp.cpd on the uord, Cr-ses 
coverin" this field r.re collected r?ji6. diger>ted in 
2 C. Jo 979 et seq, , r.lso under fippropriate titles 
in TJords .p.nd ,?hrr'.sos, ]?ifjt pnd Second Serios. 

"■Ihrrnin;i ■ to the strtutory provision "beforo us, 
-.76 n.re confirmed in the vi6^~ thnt the ^-'ord ''■\(3;reement' 
n.s tljere used, hp.s r. hronder raeaniiig than the v/ord 'con- 
trrct,' rnd its cre'-'ti-3n pnd existence cinnot oe raer- 
sitred oy that urr.nch'of the lr',7o 

"* * * The single- natter left to the violation 
ruid judgnent of the parties is the fi^:in.; of their 
proportionate lialiili'ty for terminal chrr^-es. If the 
'■ railroads cpji agree, these' proportionate charges a.re to 
' '■'oe fixed hv the vritten agreoraent' of rll such rail- 

road coT.nrnies. If they cannot agree, the proportions 
are to oe deterninrid ^o^r tho Ijoard of rrllroad coninis- 
sio:ier3." (Underscorin ; snvO.ied. ) 

Thus it ap'oerrs thrt the Section does not necessarily mean " contract*^', 
and this; cou-nled vith the contemnlp,tei.l deletion destroys the effective- 
ness of the Sectioj^. Ooviousl--- then, tlie phrase cannot "be separated 
from the remainder, and --hen such separation cannot he nade, the entire 
section 'cfust fall. (See Hn^./ard v. 111. C. H, Co. . 505 U.S. 463, 52 L, 
ed. 297-; SijraiCTie v. Thorn'oson . 118 U.S. 90, 30 L. od. 115). 

,, Conclusio n 

1. The status of Section 4 (a) remains u:ichanged, its vrlidity 
"being unaffected "by' the Schechter decision, 

2, The Schechter decisicn casts much douot on the validity of 
Section 7 ("b). To ~ivc the section any . validity, the de-oendent and 
controlli:v; clauses mtist "je deleted, rendering the remainder ineffectual. 



' 17. A. H'littlesey, 

Attorney. 

WAW:K 



9759 



-291- 
APPEiroiX II.U. 

OFriCE irsTr.ucTioN 

!T0. 28 
Sentenlier 30, 1935 

VOLUl^ARY AC-RE3,IE1TTS 

The attached announcenent from the THiite House 
dated September 30, 1935, is distributed to official: 
of the organi'^ation for their information. 



L. J. Martin 
Acting Acuninistrator 
national Recovery Adninistration 

I!he TTnite House announced that, to assist industr;- in ta^'ing advant~ 
age of the suggestion of the President as to the use of the opportunities 
afforded hy the Nationa Industrial Recoverj?- Act for voluntary agreements 
under KIPlA., the President had by Executive Order ITo. 7192 of September 26, 
1935, delegated to the Federal Trade Conmission authority to ap-orove certain 
trade practice provisions contained in voluntary agreements submitted -gur- 
suant to Section 4 (a) of Title X of said Act. 

In a letter of August 24, 1955, to Senator Harrison and Chairman Doughton 
the President said: 

"Pending determination by the Congress of rhether further in- 
dustrial legislation rdll be enacted, it is ho-oed that industrial 
groups nill, in increasing numbers, avail themselves of the pro- 
visions of the Joint Resolution extending National Industrial Re- 
covery Administration nhich permit agreements (l) putting into ef- 
fect the requirements of Section 7 (a), ninimun wages, maximum 
hours and prohibition of child labor, and (2) prohibiting unfair 
competitive practices vhich offend against existing law. Such 
agreements, i-'hen approved 'o-j the President, as to matters covered 
'hy the Joint Resoliition, are exemijted ercoressly from the penalties 
of the antitrust larrs, including criminal -orosecutions, injunctions, 
and treble damages. By such action, industr3'- can undoubtedly do 
much to preserve the verj substantial gains made while the codes 
were in effect. Applications for approval of such agreements should 
be filed with the Federal Trade Commission. 



9759 



"Ino.ustr^'- n-'.y cor.tin-ae totcO e r:dvr,ntp./Te of the far.iliar 
trace nrpctice conference nrocedui'e of the Federal Trade Ccn- 
nission. " 

Tlie PreRident har, renue^ted the Teder.ol Trade CoriTnission and the 
ITatioiial P.ecovery Adninirtration to cpo-oerate in handling volur.tary agree- 
nents under ITI2A i;.. tlie folloring mr inef: 

1. All proposed agreenentr for volvjiatry industrial cooperation sut- 
mitted uider TIM extended shall be filed at the office of the Federal 
Trar'e Co.ir.is^ion. If in addition to ^irovisions for collective "bargaining, 
maxi-nu" hours, riininu!:i vrages, etc., as required by Section 7a of ITIRA., any 
such ag-reeneiit a] so contains trade practice provisions covered h-'- nunbered. 
clause 2 of the proviso of Section^ of the Joint Resolution extending HIEA, 
each of tl:e tro classes of -orovisions snail a-opea,r in a separate title, viz: 

Title (a) Provisions covered by mvibored clause 1 of the -oroviso of 
Section 2 of the Joint Resolution extending SIRA, vix, provisions 
putting into effect the require: lents of Section 7a, including min- 
inun wages, na-iTau^ hours pnd prohibition of child labor. This 
class 01 provisiors is hereinafter referred to as "labor provisions". 

Title (b) Trad.e practice i^rovisions covered ay nunbered clause 2 
of the proviso of Section 2 of the Joint Resolution extending 
lilRA, viz. "trade -orrctice lorovisions prohibiting unfa.ir com- 
petitive practices '^hich offend- agpinst existing lar', including 
the antitrust lays, or r'hich constitute unfair nethods of compe- 
tition, under tae Federal Trade Co^jaission Act, a.s amended." 

The proponent of any such proposed' agreement for voluntary industrial 
cooperation ma,y file simultaneously thererith, a,t the office of the Federal 
Trade Corrmirsion, any otlier provisions, viz. orovisions not entitled to ex- 
emptions under either numbered cla,use 1 or numbered cla^ise '2 of the proviso 
of Section 2 of the Joint Resolution extending rlllA., it being understood 
that such provisions are submitted for aprirova.l of the Commission under its 
trade practice conference -nrocedure, 

2. Promptly nvon the filing of a pronosed voluntary industrial agree- 
ment uith the Federal Trade Commission, tae Trade Commission shall refer 
the title containing "labor provisions", to ilRA. IIRA shall consider such 
proposed la,bor provisions through a mechanism similar to thrt uhich it has 
used in the -oart, including a Lnbor Advisory Unit and an Industrial Advisory 
Unit, (set up in conference rith th6 De-oartment of Labor p.hd the Department 
of Co--]merce, res-oectively) , and the holdi ig of o;'-ien hearings. As a result 
of such procedure, I^tRA shall in due course detem.ine whether or not to re- 
commend approval of the proposed "labor provisions". 

7>, Having m?de its decision, ITIA. shall return such provisions and re- 
commendatior 5, supported by a transcript of the he.arings <?nd its findings 
of fact, to the Trade Commission, 

4. Pending consideration of ..the labor provisions of the iTroposed 
voluntary industrial agreem.ent by IIRA, the Trade Commission shall examine 
such s^greement to see wJiet'ier it includes a title containing trade tjractice 



9759 



-293- 

provisions covered by nunbered clause 2 of the proviso of Section 2 of the 
Joint Hesolution extending; iIIEil, If the agreenent contains SMch title the 
Coinnission shall proceed a.fter notice, hearings a.-id other procedure duly 
had to deternine whether or not to arj-jrove or disapprove the sane. If its 
determination shr.ll be in favor of disapproval, the Connission shall forth- 
'vith naJ:e an order to such effect Tind-er authority delegated to it by Ex- 
ecutive Order V.o, 7192 of Septenher 26, 1935, and specificall;/ referring to 
sach Executive Order. If the Conmission shall favor approval of such trade 
practice provisions, tl^e Corinission shall trs.nsnit to the president the 
labor provisions and reconnendation of iUvA, if favorable, together irith a 
statement o.s to the Commission's pjpproval of the other provisions of the 
agreement, for the President's action on the labor provisions. The Commis- 
sion shall auait receipt from the President of notification of his action 
upon the labor provisions of such agreement and upon notification of such 
ap-oroval shall ma'-e an order ar)proving such trade practice provisions u-^der 
the authority delegated to it by the said Executive Order ITo. 7192, and 
specif i call?/ referring to such Executive Order. After apr>roval by the 
President and the Federal Trade Conmission, the agreenent shall became bind- 
ing upon the parties thereto in accordance '"ith its terns. If the Commis- 
sion shall be notified by the president thp.t he has disapproved the labor 
provisions of such agreenent, the proponents shall be a-t liberty to request 
the Conmission to consider such trade practice provisions under its trade 
practice conference procedure as heroin belorr mentioned or to rithdran the 
sane. 

5. The Federal Trade Conmission shall have iDhysical custody of com- 
pleted vo]iinta,ry agreements. 

6. TJhile the labor ant", tr8.de "oractice provisions are under consider- 
ation, the proponent of the agreenent may submit to the respective govern- 
mental agencies considering -them modifications of sixch provisions or may 
agree to proposed modifiCc.tiO'ns. Applications for ariendnents after approval 
shall be handled in the sane opnner as ori^inp.l ar. plications. 

7. If proponents of a voluntary agreement for industrial cooperation 
file ^ith the Trade Commission under KI?lA extended, a title containing labor 
provisions and also a title containing trade practice orovisions covered by 
nuibered clause 2 of the proviso of Section 2 iSf the Joint Resolution ex- 
tending ITIPA a,nd at the saie time file otner and additional provisions not 
entitled to exemptions under said Joint Resolution, the Trade Commission 
shall proceed to act upon such nther and additional provisions under its 
established trade practice conference procedure, 

8. Proponents of an a.greorient for voluntarj'- industrial cooperation 
may, if they so desire, Dubriit to the Trade Commission trade practice pro- 
visions T7hich are covered b;?- nur-ibered clause 2 of the proviso of Section 2 
of the Joint Reso].ution extending ITIHA for consideration and action by the 
Commission under the trade practice conference procedure, ra.ther than un.der 
ITIRA extend.ed, it being understood that the a-oi^roval by the Tra.de Com.mission 
under that procedure does not carry the exemption conferred by the Joint Re- 
solution extending illPA.. Wliere such trade ;nractice provisions 'are submitted 
for consideration and action unc^er the trade practice "orocec'ure, the;;- need 
not be accompanied b;'- labor provisions. 



9759 



~294- 
APPSiDIX VY 

TO: • L. J. Lartin, Acting Adninistrator 

FEOil: E. W. Dchlberg, De-outy Adninistrator 

SUBJECT: Volujitary Lf:.bor Ap^reement Cfndle i.IanxLfacttu'ing Industrj^ 

I sii-TDiiiit hei-er'ith ny re-Qort, ana.l]^sis, findings of fact and re- 
connendcticns nitli respect to Title A of tha agreement for the Candle 
iian\ifactu.riag- Industry submitted for the a;o3roval of the President, 

Analysis and Fin din gs of Pact: I analyze said Title A of said 
agreement and find ss follows: 

1, That -oitrsnant to the -orovisions of Title I of the Ifetional 
Indr.strial Hecover-^ Act ap -roved. Jiane 16, 19?3, as amended \vr the ;j.oint 
resolution aToroved J-ane 14, 1955, E-:ec.-itive Order No. 7192 dated Se'jt- 
emhcr 25, 1935 and the ■orocec'-are annjunced by the Vrxiite House September 
50, 1955 an agreement for voluntar-" industrial cooperation uas submitted 
by the Cand.le Hanufactuj-ing Industry en Sent ember 30, 1935 to the Federal 
Trade Commission r/hich on October 8, 1935 transmitted: Tia.e A, or the labor 
Torovisions thereof, to the llational Hecovery Administration for its find- 
ings of fact and rocom.m.endations, 

2, That on October 20, 1935, L. J. I.iartin, Acting Administrator 
for the Hational Recover^- Adininistration issued notice of hearing ilo, 2 
providing for an. open hearing- to be held before him in the De-oa,rtment of 
Commerce Euilding, Room 2062 on November 1, 1935, at 10 A.M. for his con- 
sideration of said oroposed voliHitarj'' agreement. Copies of said notice 
together uith a copy of said Title A were mailed to the governors of all 
of the states and territories of the United States, to all first class 
post offices for the mu^.-iose of having said notice -olaced on official 
bulletin boards therein; to all lcn.own members of the said Candle Iia,nii— 
facturing Indus tr:,r, to all 'ino'-'n, persons engaged in other steps of -the 
economic -orocess T/hose service and welfare might be a,ffected, and to 
various labor unions and trade associations whose members might be in- 
terested in said her.ring. A copy of said notice and Title A of said 
proposed agreement was olaced on the official bulletin board of the 
National Recovery Administration and cciec of t>i.e said notice were re- 
leased for general oublication to nev/soaoers and trade associs,tion and 

1 abo r j our nal s . 

3, That -oursuant to said notice an open hearing was held before 
me as Demty Section Director of the Division of Business Cooperation 
of the llational Recover^'- Adi.unistration, I being duly axithorized Vj the 
Actir.g Administrator to conduct aaid hearing. At the said hearing an 
oo-iortunity to be heard either through oral or written statements was 
given to all interested parties present. The right to file briefs by 
ITovember 5, 1935 was .'-iven to all interested parties. Two representa- 
tives of said Candle MaJiufactuTing Industry were present at the hearing 
and gave testimonj;-, A Consumers' . representative also participated in 
the hearing. In addition to the testimon-' offered at the aaid hearing 

9759 



-295- 

and tlie evidence subr.itted prior to the closinf: of the record, I have 
had "'ocfore ue a studjr nade hy the Division of Revier and re-^orts of the 
various advisor^r hcards ::nd other advisors of the National Recover3'- 
Admii'.istration concarnine; the -orovisions of said Title A. 

4, That sulosequent to the herring, the orooosed vol-untary agree- 
ment \7as redrrfted to incoroorate certain formal matters suggested "b;^ 
the he. rin,"s and the -oost-he:,ring conferences and the same was suhuitted 
to the ;:_enhers of the Industry end. ^as executed a numter of counter-oarts 
^hich to::ether constitute the Agreement for the Industry. Tlie A{--'ree:ient, 
8. coj" of --hich is anneiced hereto ; r.d made a part hereof, ?7ill oe pre»» 
served in the files of the Wa^tional Hecovery Administration, It has 
Leen sifvied 'oz'' certain menhers of the Industry as evidenced "b-,^ a list 

of si^jnr.tories attached hore-7ith and ;aade a- ;oart hereof. The Agreement 
is ocing suhmitted to all hnorn memh-rs of the Industrjr, 

5, (a) That the origin of said Industrjr can he traced had: to 
the eaxly days of the religion, the Catholic, Spisco-^al and Hehren 
Church reouire, Ir^ canons or lavs, the use of caJidles in certain cere- 
monies and ivhich s-oecif:f the minimum percenta.ge of heeswax to be con- 
tained in the candles so used, 

("b) That there are three major divisions of the product, the 
Church CcJidle Division, the Fancy Candle Division, and the Household 
Candle Division. The church candle, is a religious necessitjr, as stated 
in (a) coove, a.nd the demand therefor is fairly stahle. The demand for 
fancy crndles is influenced hy the style factor and also varies directlj'- 
T7ith the business cycle. The use of household candles for ordinary 
lighting -jurposes has almost vanished due to the inroads of gas, electric 
and kerosine lamps rnd lighting fi::tures. Its chief use now is in emer- 
gencies, and the flashlight has reduced that field to a great extent, 

(c) That the -orinci^al ravf materials entering into the fin- 
ished product are heeswarc, stetirin (including tallow), paraffin and 
cotton wicking, 

6, That said Industry is comparativelj'' small in nwnher of luiits, 
volrme, and number of era^:loyees, Althou;':h there is evidence of the 
existence of some 60 plants, 23 cannot be located and are assumed to 
consist of mere "backroom" operations. For 1934, total annual sales of 
the h-nown m-anufacturers are estimated at $6,000,000.00, 

22, That the labor provisions of the said voluntas'' agreement 
are not designed to eliminate or oou-ess small enter-orises and will not 
operate to a.iscriminate against them. Tlie opportTinity accorded to all 
members of the industry to become signatories to the agreement will malie 
it possible for them to compete fairly and on an equal basis. Tliis is 
assura:ice that there will be no discrimination against small units and 
the possibility of the elimination of small enterprises is negligible nor 
is there anv indication of the use of ijractices which wou.ld oppress or 
destrop smsll com.-oet iters. If small enterprises do not choose to become 
signatories to the agreement they raa:^ em-nlo^- cheaper labor, work their 
em-oloyees long hours and use child labor and thereby be placed in a more 
advaatageous com/oetitive position with respect to the signatories of the 
agreement, 
9759 



-■296- 



33. That otservance of the labor provisions of the said voluntary- 
agreement nill, in nj judgment, aid in effectuating the TOlicy of Title I 
of the national Ind:u.strial Recover?/ Act, as amended and extended, vfith 
respect to transactions in or affecting; interstate and foreign commerce 
and will he consistent rith the requirements of clause (2) of subsection 
(a) of Section 3 of said Act hy reason of the fact that they will pro- 
mote the organization of industry for the purpose of cooperative action 
among trade groups, induce and maintain united action of lahor and man- 
agement under adequate p-overnment sanctions and suDervision, eliminate 
unfair competitive lahor loractices, increase the consvjnption of indus- 
trial and agricultural products through increasing purchasing power, 
reduce rnd relieve imemployment hy improved standards of lahor and 
otherwise rehahilitevte ls."bor and industpgf, 

24, That the lahor provisions of the said voluntary agreement 
comply in all respects with the pertinent provisions of Title I of the 
said Act includingj hut v/ithout linitation, clau.se (2) of sutsection 
(a) of Section 3, suhsection (a) of Section 7 and' suhsection (h) of 
Section 10 thereof. 

Recommendations 

Accordingly, , I. res'^ectfully recommend the approval of Title A 
or the lahor provisions of the attached vol'-antary agreement for the 
Candle Hanufacturing Industry to become effective in accordance with 
its t erms , ' 



Deputy Section Director 
Division of Business Cooperation 
.,193 . 



Ato^ roved 



Section Director, Division of Business Cooperation 



Director, Division of Business Cooperation 



Acting Administrator of the National ilecovery Administration 



-297- 

VOLUMTASY AGEEEMEIIT 
"between members of the 

TflJOLESALE TOBACCO TPAHE 

The imder signed members of the ^olesale Tobacco Trade have entered 
into the follo'.7ing voliontary agreement: 

ARTICLE I - PUEPOSES. 

The parties hereto agree \?ith each other to observe all the provisions of 
this agreement in consideration of the benefits thereby accruing to each 
party hereto and for the purrjose of eliminating unfair competitive practices 
in the industry, reducing uneraplosTnent, im-nroving standards of labor, 

ARTICLE II - DEFIIIITIONS. 

Section 1, The term "Wholesale Tobacco Trade" means and includes all 
selling and distributing at wholesale of tobacco products and allied lines# 

Section 2. The term "tobacco products" includes, v/ithout limitation, 
all cigars, stogies, cheroots, little cigars, cigarettes, smoking tobacco, 
chewing tobacco and snuff o 

Section 3. The term "allied lines" includes, without limitation, all 
products ordinarily marketed by a member of the Wliolesale Tobacco Trade, such 
as, confectionery, groceries, playing cards, pipes, syrups, stationery, drugs, 
and novelties. 

Section 4. The terms "wholesale tobacco distributor", "wholesale dis- 
tributor" and "member of the Trade" mean any person engaged wholly, or par- 
tially, either as an emoloyee or for his own account, in the wholesale tobacco 
trade. 

Section 5, The tenn "wholesale tobacco establishment" or "establishment" 
means eny place of wholesale business at which more than one-half the dollar 
value of sales made consists of tobacco products, or at which the principal 
line of business is the sale of tobacco products. 

Section 6. The term "employee" includes any and all persons engaged in 
the wholesale tobacco trade, however compensated, except a member of the trade. 

Section 7. The term "employer" means any person by whom any such em- 
ployee is compensated or employed. 

Section 8, The term "executive" means an em.ployee responsible for the 
management of a business or a recognized subdivision thereof. 

Section 9. The term "outside salesman" means an employee who. is engaged 
wholly or partially in selling outside the establishment, or any branch there- 
of, where he is employedo 

Section, 10, The term "outside delivery employee" means an employee 
engaged primarily in delivering merchandise outside the establishment where 
he is employed, 
9759 



-298- • 

Section 11, T-ie term "^mtcliinnn" lueMiE an employee v;ho for not less tlian 
ninety (90) percent of liis -vvorkin- hours is en vo.{jefl in v/atcnin-^ mi.C. r.;aB:cd.inQ 
the premises of the estr.blisliraent. 

Section 12. The terra " aporenticc" i;.ep.ns en er.iployee r/it'i less than one 
(l) i.ionth's e:rierience in ti.e v.h.olcsfile toha.cco tr^x'.e. 

Section 13. The ter.u "person" includes all individuals, firi.is, partner- 
sliips, unincoiporatod associptiuns, corporations and ot.ier for-as of enter- 
"orise. 

Section 14. The tern "State" means any State or Territory and the 
District of. Golru.i'bia. 

Section 15, The tern "South" includes the folloi?,dng States: Vircinia, 
'Test Vir^-inia, horth Gr-rolina, South Carolina, Georgia, rlorida, Zentuchy, 
Tennessee, Alal).r;ia, hississinpi, Arkans?s, Loaiyiana, Oklahoma,' New i.iexico , 
and Texas. 

Section 16. Pop^ilption f or , t-..e prr jqses of t;.is Aj'-:ree;-;ent-' sh.all -"be 
determined oy reference to the Irtedt census of fcie United States. 

Section 17. The tern "/ssoci- tion" .uieans tne Hational' Associ'atioii 'of 
Tobacco Dis.trihutors,- Inc. ' , ,. . _,,.,, . , , ■ 

'.. '.:;.\- ■■ "-■■ ARTICLE III- "OUHS. 

Section 1. Except as hereinafter provi>:''ed, no cnployee of any- wholesale 
tobacco cstahlishienli siiall he pei-r-itted to work in excess of forty (40) 
hours in p,ny one 'ledz. 

Section 2. '.Tatd-Xuon ji,ay he perat'-ed to ivork not in excess of fifty-six 
(56) aours in any one v^cck. • 

Section 3. Outside delivery empibyees and oillin.-? and shin-pin^; clerks 
and cashiers workin:', in conjunction with the outside delivery esaployees in 
work of such nature that aiiy ine^ iVality of hours would interrupt the routine 
of the outs.-de c'elivery de-»jart:.ient laay h-e perv,.itted to v/ork not in excess of 
forty-ci-ht ( ::3) ^lours in any one \7eek. 

Section <.-, Tor a. period not to c:.:cecd one (1) nionth in the cilandrr 
year, er.p)loyees :aay he peruiitted to nor]: overtiine^ not in excess of five (5) 
hours of the naJxiiiiu-n per '.yeek. All such er.tr- hour;; shall "be conrjcnsated 
for at the rate of time and one- third. • •' ' - 

Section 5. Executives w'.'.o earn not les'3 than thirty-five (35) dollars 
per v/eik and outside salesmen, ..;ay he per.iittod to vork in excer^s of the 
maximujn hours provided in this a.,;roer.ient. 

Section 5. Fo employee sliall he ;nenp.iitted to v/ork more than six (6) 
days in any seven (7) day period. .,, • ' 

Section 7. Ho v/holesale tohacco estahlisijinent shall perfonn any sales 
or service operations on Sundf^ys. 

9759 



-299- 

^TICLE IV - "ja:.-zs. 

Section 1. Sxcenot as hereinafter provided, the minim-oin weekly rates 
of -va^en wliio-i slxpll "be paid to employees of \¥iiolesale tol>acco esta.blisiraents 
for a -rorh-v.-eek as specified in Article III of this Agreement - whetJicr sucl:. 
'.?a.--;es are calculated upon axi hourly, weekly, nionthly, co--:iission, or any 
other "basis - shpll be as follo'-'s: 

(a) 'Tithin cities of over 500,000 population, no employee shall "be 
paid less thaji at the rate of '16.00 per week for a forty (d-0) hour work -week. 

(o) nit>-in cities of from 100,000 to 500,000 population, no employee 
shall be pr.id less than at the rate of ^15. 00 per week for a forty (40) hour 
work- week. 

(c) Uithin cities of from ?.5,000 to 100,000 po-oulation, no employee 
shall be paid less than at the rate of $l^.-.00 per week for a forty (40) hour 
work- week. 

^( d) In the South employees mtiy be paid .'Jl.OO less than the minimum v/rge 
ates rirovided above. 

Section 2. Delivery helpers not to exceed one for each delivery vehicle 
used by the wholesale distributor, may be paid at the rate of not less than 
ei<'::;hty (30) per cent of the minimim w:,:'<?-^ "Drovided in Section I of this 
Article. 

Section 3. Apprentice emisloyees i^nay be paid at the rate of $1.00 less 
than the minimu-a wa;fes -orovided in Section 1 of this Article, 

Section 4. ITo outside salesman, whether employed on a commission basis 
or otherwise shall be paid less thaii at the rate of ;25.00 per week. 

Section 5. No person employed as a watc:ii-;aai shall be paid less than at 
the rate of -316.00 per week for a fifty-six (r;6) hour week. 

\ Section 6. ho office employee shall be p; id loss than at the rate of 
-^16.00 for a forty (40) hour work-week. 

ARTICLE V - uEhZ3j\L LAEOxi fhOVISI^h'S. 

Section 1. Employees sl.all have tlie rif^ht to or 'anize and bar£;ain 
collectively throurh representa.tives of their own choosm:;, ajad shall be free 
from the inter-Terence, restraint, or coercion of employers of labor, or their 
a;:;ents, in t].e designation of such representatives or in self-or/;;aniza,tion 
or in other concerted activities for the purpose of collective bargaining 
or other mutual aid or protection. 

Section 2. ho employee and no one scekin.": employ. lent shall be required- 
as a condition of emT)lo;^^.',ient to join any comoany union or to refrain from 
joining, oiyjanizing, or assistinfj a labor or-^anization of his own choosing. 



9759 



-30O 

Ssction 5. Empoyers s'-iall coaply vdt- t e niaxii'-r.im rours of labor, 
;iinini"u:ii rates of pay ?xiO. otlier com'.: t ions of e.r-'lo"/:ient, a"; 'proved or pre- 
scribed "oy t'.ie president. 

Section 4. Fo person under tlie a"G of sixteen (L6) years sliall be 
employed in tl.e v/iiolesale tobpcco trade. 

Section 5. To person imder eighteen (IS) years of a:;e siirjl be em- 
ployed or be pCiTnitted to vrork, at ope'rations or occupations liazardoiis in 
nature or detrir.ient;^l to health. 

Section 6. Employers snpll rnaJce pa.yinent of all '-'ages in lawful currency 

or by negotiable cheeks, pay-able on deriand. All contracts of employment 

shall prescribe pa.ynent of w.^^es at least every two weeks and salaries at 
least as often as every month. 

Section 7, ITo provision in this Agree.ient shall su-oerscde any State or 
Federal Lav/ -jhich imposes on employers more stringent renuirements as to age 
of employees, wages, hours of work, or as to safety, heal-Qa , sariitary or ■ 
general working conditions, or insurance or fire protection, tl^an are im- 
TDOsed by this Agreenient. 

Section C. Emploj'-ers shall not change the method of payment of employeet 
compensation or re-classify employees or duties of occup?itions performed 
by employees or engage in any other subterfu;-e so as to defeat the purposes 
of the Act or thp provisions of this Agrenmenfc. 

Section 9. JIo employee paid at a rate in excess of the mini:;ium shall be 
discharged and reemployed at a lower rate of pay for the purv^ose of evading 
the provisions of this Agreement. 

Section 10. All employers snail keep posted complete copies of the 
■Drovisions of this Agreement dealin" v/ith hours, wages and conditions of em- 
ployment in cons^'icuous places of o?sy and continuous access to empiloyees. 

Section 11. Every employer sliall m,ake reasonrble provision for the 
safety and health, of nis employees at tne place and during the hours of their 
employment. 

Section 12. Female em.ployces performing substantially the s>anie work as 
male employees, sh.all receive tne sa,iic rate of pay as male employees. 

Tiic fore .oing is -'ssentod to by tLie following member of the 'Tnolesale 
Tobacco Trade. 



^Company 



Bates: 1935. 



9759 



-301- 



APPaiTSIX X X 



Registry No, 3 

ITATIOFAL IJ^GOVEEY ADMIITISTE-iTIOH 

Title A (Labor Provisions) of 
Proposed Voluntary Agreement for the 
EXPAIffiilEC- A1\D SPECIALTY PAPER PRODUCTS IlOUSTEY 
Set for Patlic Hearing November 1, 1935 

The labor provisions of a voluntary agreement for the Erooanding 
and Specialty paper Products Industry in the present form merely 
reflect the proposal of the above-mentioned Industry, and none 
of the provisions contained therein are to be regarded as having 
received the approval of the national Recovery Aiiininisti-ation 
as applying to this Industry. 



9759 



502 

This a^reenent made and entered into this day of 1935, 
■fay and oetween the imdersigned raemters of the Expaiidin;- and Specialty Paper 
Products Industry, witnesseth: 

■Whereas, we the parties to this agreement are all engaged in the 
manufacture of handfold bellovrs expanding v/allets, file folders and pockets, 
expanding files, expanding mailing wallets and other handfold expanding de- 
signs, principally from wood pulp, jute and hemp rope fihre papers, (mostly 
of the familiar reddish-brown color), cloth and canvas covered papers, imita- 
tion leather, etc. , and 

■Sliereas, unreasonable and uneconomic manufacturing and marketing 
practices have in the past been indulged in by us, when in competition with 
each other and with other manufacturers of the same products, and 

■Whereas, we believe these unreasonable and uneconomic manufactur- 
ing and marketing practices can be eliminated by our concerted action under 
orderly and legal procedure, pursuant to Section 4 (a) of Title I of the 
National Industrial Recovery Act, as amended, subject to the approval of the 
President and for the purpose of eliminating unfair competitive practices in 
the E:cpanding and Specialty Paper products Industry, reducing unemployment, 
improving standards of Ir-bor, and otiierwise aiding; in effectuating the policy 
of Title I of the National Industrial Recovery Act, as amended, 

ilow, therefore, in consideration of the premises, the mutual cove- 
nants hereinafter set forth, and otiier good and valuable considerations, paid 
by each patty hereto, the receipt and s-iiff iciency of which is conclusively 
acknowledged, it is hereby mutually understood and agreed as follows: 

TITIiS A - LABOH PROVISIONS 

First , that we hereby appoint the Board of Directors of the Ex- 
panding and Specialty Paper products Institute to be the Administrative Agency 
for carrying out the terras of this Title, with the stipulation that the said 
Board of Directors shall employ an impartial, disinterested agent for the 
collection and compilation of labor statistics, and for any and all other 
duties of a confidential or clerical nature, that may grow out of this agree- 
ment, such person or firm to be hereinafter referred to as the Administrator; 

Second , that nothing in this Title shall ever be taken or con- 
strued as implying, recommending or suggesting any restriction whatsoever 
upon the liberty and duty of each of us to determine independently each and 
every element of his own prices, discounts and terms, the selection of his 
own customers and territory, the oj.-iount of his own uroduction, and every 
other detail of h^s own business, in res-nect of which the law affords him 
liberty of action. 

Third, that we will not reouire or -t^erinit our emplo'/ees to work 
hours in excess of the limits prescribed in the following schedule: 

(a) TTatchmen: Fift^'^-six (56) hours in any one wee]:, bvit not more than 
six (6) days in any seven (7) day period; or fifty-six (56) hours 
in any one week, but not more than eight (8) hours in any one day. 



J759' 



503 

(t) Chauffeurs, truckdrivers and their helpers; One hundred eighty 

(180) hours in any period- of four (4) consecutive reeks, provided, 
hoTrever, that time worked in excess of nine (9) hours in any one 
da5- or forty-five (45) hoiirs in anj'- one ^jeek will be paid for as 
not less than time and one-half » 

(c) En-^ineers, firenen, electricians, filter plant employees, electric 
and hydroelectric operators: One hundred sixty-eight (168) hours 
in any period of four (4) consecutive weeks, provided, however, 
that time rrorked in excess of nine (9) hours in any one day or 
forty-five (45) hours in any one vreek will "be paid for as not less 
than time ajid one-half, 

(d) All other laborers, mechanical workers or artisans e-iployed in any 
plant, mill or factory, or on work connected w ith the operation of 
such plant, mill or factory: Eight (8) hours in any one day and 
forty (40) hours in anj^ one ueelc, provided, however, that these 
Eaximura limits may be exceeded in any twelve (12) v,-eeks of each 
calendar year, provided that all tine worked in excess of eight 
(8) hours in any one day or forty (40) hours in any one week 

will be paid for s.s not less than time and one-half, and provided, 
further, that no e'rolo:;-ee vrill be required or -oermitted to work 
in excess of ten (10) hours in any one day or forty-eight (48) 
hours in any one week, 

(e) Employees regularly engaged in a managerial, executive or super- 
visory capacity and their .personal secretaries, receiving thirty- 
five ($o5,C0) aollars or more per weeic, and outside salesmen: 

ICo limitation. 

(f) All other employees: Forty-eight (48) hours in any one week but 
not to exceed three hundred twenty (320) hours in any period of 
eight (S) consecutive weeks. 

No limitation contained in said schedule will apply to employees 
of any class when engaged in emergency repair or emergency maintenance 
work occasioned by brealedo\ms or involving protection of life or property, 
provided, however, that all time v/orked in excess of the limitations 
prescribed in said schedule will be oaid for as not less than tim.e and 
one-half, 

None of us will permit any employee to v.'ork for any time which, 
when totaled with th3t already performed with another emi^loyer or emT)loyers 
in this industry, exceeds the maximum permitted herein, 

J]o female employee will be required or permitted to v/ork betv/een 
the hours of 10:00 P. n. and 6:00 A.L', 

ITo emplo?/ee of the classes included \inder paragraphs (b), ,(c) 
(d) and (f) of this Article will be required or permitted to work more 
than six (6) days in aaiy seven (7) consecutive days, 

Fourth , that the minimum rate of wage of any employee, other than 



office and clerical employees, employed in any plant, mill or factory, or on 
work connected with the operation of any such plant, mill or factorjr, will be 
as follows: 



9759 



304 
(a) 356- per hour for all employees engaged in hand folding, giiraraing, rnd 

assembling operations and the ins;:iection, connected ^7ith such operations; 
4:0ii per hour for all other such emploj^ees, 

("b) The minimum rste of vage of eny office or clerical employee ',7ill "be 
$15.00 per week, 

(c) This article establishes a minimum rate, of pay which will ap'oly 
irrespective of whether an employee is actually compensated on time 
rate, piece work or other basis, 

(d) Office boys and girls under eighteen (18) years of age, to the extent 
of no more than 5fo of the total number of employees described in 
paragraph (b) hereof, may be employed at a wage of not less than 80$^ 
of the minimum prescribed by said paragraph, provided that at l3a,st 
one such office boy or girl may be employed by each member. 

(e) Female employees performing substantially the same work as male 
employees will receive the same rate of pay as male employees, 

(f) A person whose earning capacity is limited because of age, physical 
or mental handicap, or other infirmity, may be employed on light work 
at a wage below the minimum estrblished by this agreement if the 
employer obtains from the sttite authority, designated by the United 
States Department of Labor, a certificate authorizing such person's 
emploi'A-'ient at such wages and for such hours as shall be stated in 
the certificate. Such authority shall be guided by the instructions 
of the United States Department of Labor in issuing certificates to 
such persons, 

(g) Persons loarning an occtraation snail be paid not less than 66''/o of 
the minimv_m prevailing wage for sixch occti.pation provided that the 
number of such learners em.i^loyed by any member of the Industry shall 
not exceed 10^ of the nuraber of employees in such occupation but 
shall not be limited to less than 2 persons, and that learners shall 
not be employed as such for a period in excess of six weeks, 
irrespective of whether they are employed by one or m.ore employers, 

I'ifth . that 

(a) Ho person -under sixteen (15) years of, age will be eraxiloyed in the 
industry'. Ho person under eighteen (13) years of age will be 
'employed at operations or occupations which are hazardous in nature 
or dangerous to health, 

(b) Employees will have the right to organize and bargain collectively 
through representatives of their or.m choosing, and will be free from 
the interference, restraint, or coercion of employer's of labor, or 
their agents, in the designation of such representatives or in self- 
orgsjiization or in other concerted activities for the purpose of 
colle ctive bargaining or other mutual aid or protection. Ko employee 
and no one seeking emplo:;'ment will be required as a condition of 
employment to join any company union or to refrain from Joini-ng, 
organizing;, or assisting a labor orgrmization of his own choosing. 



9759 



365 

(c) llo provision in this agreement shall supersede any State or Federal 
lau v.'hich imposes on enployurs more stringent requirements as to a^e 
of employees, wages, hours of vtork, or as to safety, health, sanitary 
or general r7orking conditions, or insurr.nce or fire protection, than 
are imposed "by this Title* 

(d) ',/e will not 2-"eclassify employees or duties or occupations performed 
or engage in any other suhterf-oge for the purpose of defeating the 
;:iurposes or provisions of this Title, 

(e) T.'e will mal:e reasonable provisions for sci^ety and health of our 
employees at the place and during the hours of their employment, 

(f) The manufactiire or partial nanufacture of any product of the industry 
in homes will "be prohibited. 

Sixth , that 

(a) Our books of record will be open to investigation by the Administrator 
at any time, so that he may know that each of u.s individually, is 
adhering to all of t!ie provisions of thi? Title; and further 

(b) That upon any complaint by any party to the agreement, alleging 
failure by another party hereto, to comply in any detaal with any 

of the labor provisions hereof, va will submit any or all of oui- per- 
tinent books and records to an exar.ination by the Administrator or such 
Certified Pablic Accountant as he may appoint, for the purpose of 
determining whetner or not the complaint is justifiec; 

(c) Further, that in the event such examination supports the a,llegations 
made, the manufacturer committing the infraction, will pay the cost, 
of the examination, including travelling expenses and disbursements; 

(d) Further, that in the event such an examination discloses no failure 
to comply in letter or in spirit, with the provisions hereof, then 
the expenses of the examination shall bj borne by the manufacturer 
making the allegation. 

Seventh, since the violation by a party hereto of any provision 
of this Title will disrupt the normal course of fair competition in the 
industry and cause serious damage to others, and since it will be impossi- 
ble accurately to determine the amount of such damage, we therefore adopt 
the follov/ing metliod of liquidating such damages: 

1. Any partj;- violating any provision of this Title shall pay to the 
Treasurer of the Administrative Agency, upon determination of violation 
by the Administrator, or the impartial tribunal provided for in Article 
Eight hereof, amo^onts a,s set forth below: 

(a) For the violation of any v/a,;e -provision, an amount equal to the 
difference between the wages which have been paid and the wages 
which would have been paid if the member had complied with the 
applicable provisions of this Title; 



9759 



306 

(b) For the violation of any hour t)r6vision, an a^Tioimt equal to the -jages 
payable for ths overtiiie n.t the re,,ailar rate iDa.yable imder the terms of 
thic Titlo, to the enroloyee or employees who ^7orked overtime, 

(c) Tor the violation of any labor provision of tais Title other than an 
hciar or \7a:^e provision One Htijiared ($100) Dollars: 

2,- All amounts so paid to or collected by the Treasurer of the Admin- 
istrativB A£:e:-.cy, under the provisions of this Section, shall be ao-nlied by 
him as follows: Equitable distribution of all damages paid therefor shall 
be made among all employees directly affected by such violation, 

3, Tlie Administrative Agency may waive liability for payment of liquid- 
ated (damages for any violation it finds to have bean innocently made piid re- 
sulting to no material injury, 

4, The Treasurer of the Administrative Agency, as an individual, and 
not as Treasurer, by acceptin:7 office, accepts the trust established by this 
contract and agrees to perform the duties of Trustee hereunder until his 
successor in office may hsve been a^Dpointed, 

E ighth , that if any party to this agreement having been adjudged 
by the Administrator as having been in violation of any of the provisions 
of this Title and subject to njiy of the liqiiidated dajnages, desires to appeal 
from this decision to an indenendent tribunal the Administrative Agency/ is 
empowered to select ■zu.cli trib-jnal. AJ.l incidental e:rpenses connected with 
such adjudicrticn shall be borne by the party requesting such service, 

GEi^SRAL FaOVISIGNS 

ilinth , any one of the na^rties to this agreement may withdraw his 
signature therefrom upon giving due notice of such action to each of the 
other parties to the agreement and the Administrator, thirty (30) days prior 
to the effective date of such withdrawal. 

Tenth, the President may from tine to time cancel or nodif;- this 
agreement or any part thereof providing, however, that any party hereto may 
withdraw from this agreement within thirty (30) days after receipt of notice 
of said Mc dif ication, 

iiileventh , the terms of this agreement shall be in effect so long 
as Title I of the Eational Industrial Recover;'- Act, as amended,' shall be in 
full force and effect, bxit in no' event for a period of more than one (l) 
year from, the date hereof. 

In witness whereof the" parties hereto have hereunto set their 
hands and seals as of the da,y and year first above v/ritten. 

Name of Firm 



Authorized Signature_ 
Address 



9759- 



ATDpendix Y Y 



NATIOKAi KZCOWm ASMIIJISTEATIOU 



Registry ITo. 2 



Title A (Lator Provisions), of Proposed 

Voluntary ■Agreement for the 

CAIIDLS MAmii^ACTURDIG IMUSTRY 

Snt for PulDlic Hearing lIov&in"ber 1, 1935. 

The lalDor -provisions of a volxintary agreement for the Candle 
Manufacturing Industry in the present form merely reflect the 
proposal of the a"bove-inentioned Industry, and none of the 
provisions contained therein are to be regarded as having 
received the approval of the National Recovery Administration 
as applying to this Industry. 



9759 



This agreement made and entered into this day of 193 , 
"by and between the undersigned memhers of the Candle Manufacturing Industry, 
witnesseth: 

Tyhereas, we the parties to this agreement are all engaged in the 
manufactiire of candles, and 

T^hereas, unreasonalDle and uneconomic manufacturing and marketing 
practices have in the past "been indulged in "by us, when in competition with 
each other and with other manufacturers of the same products, and 

Whereas, we helieve these unreasonable and uneconomic manufactur- 
ing and marketing practices -can. "be eliminated "by our concerted action under 
orderly and legal procedure, pursuant to Section 4 (a) of Title I of the 
National Industrial Recovery Act, as amended, su"bject to the approval of 
the president and for the purpose of eliminating unfair competitive prac- 
tices in the Candle Manufacturing Industry, reducing unemployment, improv- 
ing standards of labor, and otherwise aiding in effectuating the policy of 
Title I of the National Industrial Recovery Act, as amended, 

Now, therefore', in consideration of the premises, the mutual 
covenants hereinafter s3t forth, and other good and valuable considera- 
tions, paid by each party hereto, the receipt and sufficiency of which 
is conclusively actmowledged, it is hereby raatually understood and agreed 
as follows: 

TITLE A - LABOR PROVISIONS 

First, that we hereby appoint the Board of Directors of the 
Candle Manufacturers Association to be the Administrative Agency for 
carrying out the terras of this Title, with the stipulation that the said 
Board of Directors shall employ an inpartial, disinterested agent for 
the collection and compilation of labor statistics, and for any and 
all other duties of a confidential or clerical nature, that may grow 
out of this agreement, such person or firm to be hereinafter referred 
to as the Administrator. 

Second , that nothing in this Title shall ever be taken or 
construed as implying, recommending or suggesting any restriction what- 
soever, upon the liberty and duty of each of us to determine independent- 
ly, each and every element of his own prices, discounts and terms, the 
selection of his own customers and territory, tne amount of his own pro- 
duction, and every other detail of his own business, in respect of which 
the law affords him liberty of action. 

Third, that we will not require or permit our employees to 
work hours in excess of the limits prescribed in the following schedules: 



9759 



-3C9- 

(a) Watchmen: Fifty-six (55) hours in any one Treek, but not more than ' 
six (5) days in any seven (7) dpjy period; or fiftjr-six (56) hours 

in any one week, but not nore than ei~ht (8) hours in any one day. 

(b) Chauffeurs, truckdrivers and their helpers: One hundred eighty 
(180) hours in any period of four (4) consecutive weeks, provided, 
however, that time worked in excess of nine (9) hotirs in any one 
day or forty-five (45) hours in any one week will be paid for as 
not less than time and one-third, 

(c) Engineers, firemen, electricians: One hundred sixty-ei^rht (168) 
hours in any period of four (4) consecative weeks, provided, 
however, that time worked in excess of nine (3) hours in any one 
da,y or forty-five (45) hours in an;^'' one week will be paid for as 
not less than time and one-third. 

(d) All other laborers, mechanical workers or artisans employed in any 
^jlant, or factory, or on work connected with the operation of such 
plant, or factory: Eight (8) hours in any one day and forty (40) 
hours in any one week, provided, however j that these maximum limits 
may be exceeded in cny twelve (12) v/eeks of each calendar year, 
provided that all time worked in excess of eight (8) hours in any 
one day or forty (40) hours in any one week will be paid for as 
not less than time ai^.d one-third, and provided, further, that no 
employee will be required or permitted to work in excess of ten 
(10) hours in any one day or forty-eight (48) hours in any one 
week, 

(e) Employees regularly engaged in a managerial, execative_or super- 
visory capacity and their personal secretaries, receiving thirty- 
five ($35,00j dollars or more per v/eek, and outside salesmen: 

No limitation. 

(f) All other employees: Eorty-eight (43) hours in any one week bat 
not to exceed three hundred twenty (320) hours in any period of 
eight (8) consecutive weeks, 

iio limitation contained in said schedule will apply to 
eniployees of any class when engaged in emergency repair or emergency 
maintenance work occasioned by breakdowns or involving protection of 
life or property, provided, however, that all time worked in excess of 
the limite.tions prescribed in said schedule will be paid for as not 
less than time and one-third. 

Kone of us will permit any employee to work for any time 
which, when totaled with that already performed with another employer 
or employers in this industry, exceeds the maximuiQ permitted herein. 

Fourth, that the minimum rate of wage of any employee, 



9759 



-310- 
employed in sxij prc?iit, or factory, or on work connected with the opera- 
tion of any such ylant, cr factor^', nill l^e as follows: 

(a) 40:^ per hour, except employees engaged in light and non-hazardous . 
ocaipations of the vicking^ finishing and packaeing departments 
',.iio shall not he paid less than at the rate of thirty cents (SO,/') 
per hour. 

(h) The uiniimaiii rate of wage of any office or clerical employee will 
he $15,00 per week, 

(c) i.;inir-Tia:.i rates of pay estahlished hy this agreement will apply 
irrespective of whether an emoloyee is actuallj'" compensated on 
ti;.ie rate, piece work or other Dasis, 

(d) office hoys and girls under eighteen (18) years of age, to the 
extent of no more than Sfo of the total number of office employees 
luay he employed at a wage of not less than 80;t of the minimvjn, 
provided that at least one such office hoy or girl may he employed 
hy each menher, 

(e) Pemale e/uployees porforr.ing suhstantially the same work r?,s male 
employees will receive the same rate of pay as male em^Dloyens, 

(f) A person whose earning capacity is limited hecause of age, physi- 
cal or mental handicap, or other infirmity, may he employed on 
light work at a wage helow the minirmim established hy this agree- 
ment if the employer obtains from the state authority, designated 
oj the United States Department of Labor, a certificate authoriz- 
ing su.ch person's employment at such wages and for such hours as 
shall be stated in the certificr.te. Such authority shall be 
guided by the instruxtions of the United States Department of 
Labor in issuing certificates to s^ach persons, 

(g) persons learning an occupation shall be paid not less than 66^^ 
of the minim-urn prevailing T;age for such occupation provided that 
the nuraber of such learners employed by any member of the Industr;^ 
shall not excded 10^ of the number of employees in such occupation 
but shall not be limited to less thpn 1 person, and that learners 
shall not be enrployed as such for a period in excess of six weeks, 
irrespective of whether they are employed by one or more employers. 

Fifth , that 

(a) ilo person under sixteen (16) years of oge will be employed in the 
industry, Ko person under eighteen (iS) years of age will be 
erjployed at operations or occupations which are hazardous in' 
nature or dangerous to health. 



9759 



-311- 

(b) Employees will have the right to organize arid "bargain collective- 
ly through represeiitatives of their 0T"n choosing, and will he free 
from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of sach representatives 
or in self~organization or in other concerted activities for the 
purpose of collective bargaining or other imtual aid or protec- 
tion. T.o employee end no one seeking era^^loyment Trill be required 
as a condition of employment to join any coupaxiy union or to 
refrain from joining, orgEaiising, or assisting a labor orgaiiiza- 
tion of his ovm. choosing, 

(c) llo provision in this agreement shall supersede any State or 
federal law which imposes on employers more stringent require- 
ments as to ag'e of employees, we^es, hours of work, or as to 
safety, health, sanitary or general working conditions, or 
insurance or fire protection, than are imposed by this Title, 

(d) We Trill not reclassify employees or duties or occupations per- 
formed or engrge in any other subterfuge for the purpose of 
defeating the pur^:)OEes or previsions of this Title. 

(e) If aaiy party to tnis agreement is also a member of anotner indus- 
try the provisions of this Title shall apply to and affect only 
that part of his business which is included in the Candle Manu- 
facturing Industry. 

(f ) ITo party to this agreement shall cause or permit any part of the 
work of the production of his products to be performed at any 
place other than his or its factory premises or those of another 
manufacturer. 

Sixth , that 

(a) Our books of record will be open to investigation by the Adminis- 
trator at any time, so that he may know that each of us individual- 
ly, is adliering to all of the provisions of this Title; and further 

(b) That upon any complaint by any party to the agreement, alleging 
failure by another party hereto, to comply in any detail with 

ajiy of the labor provisions hereof, we will submit any or all of our 
pertinent books and records to an examination by the Administrator 
or such Certified Public Accountant as he may appoint, for the pur- 
pose of determining whether or not the complaint is justified; 

(c) Further, that in the event such examination supports the allega- 
tions made, the manufacturer committing the infraction, will pay 
the cost of the examination, including travelling expenses and 
di sbfur s ement s , 

(d) Further, that in the event such an examination discloses no 
failure to comply in letter or in spirit, vith the provisions 
hereof, then the expenses of the examination shall be borne by 
the manufacturer mailing the allegation. 



9759 • 



Seventh , since the violation b:/ a party hereto of any pro- 
vision of this Title will disn.-'.pt tiio ncrm-il course of fair competi- 
tion in the industry and cause serious dama^re to others, and since it 
will te inoossihle accurately to determine the aracunt of such damage 
we therefore adopt the follov/ing method of liquidating such damages: 

1. Any party violating any provisions of this Title shall 
pay to the Treasurer of the Adiiinistrative j\gency, upon determination 
of violation oy the Administrator, or the arbitrator or impartial tri- 
bunal provided for in Article Eight hereof, amoi.mt s as set forth below: 

(a) Por the violation of any vrage provisions, an amo-ont equal to the 
difference between the wages which have been paid and the wages 
T/hich would have been paid if the member had complied with the 
applicable provisions of this Title; 

(b) Por the violation of any hour provision, an amount equal to tne 
wages payable for the overtime at tl^e regular rate payable under 
the terms of this Title, to the empiloyee or einoloyees who worked 
overtime, 

(c) Por the violation of any labor provision of this Title other than {M 
an hour or wage provision One Hu.ndred ($100) Dollars: 

2. All amoT-uits so paid to or collected by the Treasurer of 
the Administrative Agency, under the provisions of this Section, shall 
be applied by him. as follows: Equitable distribution of all damag'es 
paid therefor shall be iaade among all employees directly affected by 
such violation. 

3, The Administrative Agency may waive liability for payment 
of liquidated damages for any violation it finds to have been innocently 
made and resulting to no material injury, 

4, The Treasurer of the Administrative Agoncy, as an individual, 
and not as Treasurer, by accepting office, accepts the trust established 
by this contract and agrees to perform the duties of Trustee hereunder 
■until his successor in office may have been appointed. 



{0 



Eighth , if any party to this afrreement having been adjudged by 
the Administrator as having been in violation of any of the provisions of 
this Title, and subject to any of the liquidated da:nages, desires to 
appeal from this decision to an independent arbitrator or tribunal, the 
Administrative Agency is empowered to select such arbitrator or tribunal. 
All incidental expenses connected with such adjudication shall be borne 
by the party requesting such service. 

i:ii-th , any violation of the provisions of this Title and an award 
or awards of arbitration hereuiider, and/or the entry of a judgment or decree 
or other action by virtue of eny violation of the provisions of this Title, 
shall not terminate this agreement, but the same shall continue in full 
force exid. effect until the termination thereof by limitation of time as 
herein set forth. 



9759 



-513- 
C-5]TiaAL ?Ii OVlSIO NS 

Tenth, this apireement raaj "bs amended, modified or terninated 
upon tho consent of the majority of the undersigned parties to the agree- 
ment in numlier and dollar volume of sales. 

Eleventh, the President may from time to time cancel or modify 
this agreement or any part thereof providing, ho'.7ever, that ajiy party 
hereto may withdraw from this agreement within thirty days after receipt 
of notice of said modification. 

Twelfth, execution of this agreement mpy "be made in counters- 
part with the same force and effect as if made in one original. 

Thirte enth, the term of this agreement shall he in effect so 
long as Title I of the "ational Industrial Recovery Act, as amended, shall 
he in full force and effect, hut in no event for a period of more than one 
year from the date hereof* 

fourteent h, this agreement shall he hinding upon the respective 
parties hereto, their hoirs, executors, a'iministrators, successors and 
assignees* 

Fifteenth, the invalidity of any portion of this agreement shall 
in no wai^ invalidate the remainder thereof. 

In witness whereof the parties hereto have hereunto set their 
hands and seals as of the day and year first atove written. 

Name of Firm 



Authorized Signature_ 
Addr e 3 s 



9759# 



OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 
THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, established the Division of Review of the 
National Recovery Administration. The pertinent part of the Executive Order reads thus: 

The Division of Review shall assemble, analyze, and report upon the statistical 
information and records of experience of the operations cf the vrarious trades and 
industries heretofore subject to codes cf fair competition, shall study the ef- 
fects of such codes upon trade, industrial and labor conditions in general, and 
other related matters, shall make available for the protection and promotion of 
the public interest an adequate review of the effects of the Administration of 
Title I of the National Industrial Recovery Act, and the principles and policies 
put into effect thereunder, and shall otherwise aid the President in carrying out 
his functions under the said Title. I hereby appoint Leon C. Marshall, Director of 
the Division of Revie*. 

The study sections set up in the Division of Review covered these areas: industry 
studies, foreign trade studies, labor studies, trado practice studies, statistical studies, 
legal studies, administration studies, miscellaneous studies, and the writing of cede his- 
tories. The materials which were produced by these sections are indicated below. 

Except for the Code Histories, all items mentioned below are scheduled to be in mimeo- 
graphed form by April 1, 1936. 

THE CODE HISTORIE S 

The Code Histories are documented accounts of the foruation and administration of the 
codes. They contain the definition of the industry and the principal products thereof; the 
classes of members in the industry; the history of code formation including an account of the 
sponsoring organizations, the conferences, negotiations and hearings v/hich *ere held, and 
the activities in connection ,vlth obtaining approval of the code; the history of the ad- 
ministration of the code, covering the organization and operation of the code authority, 
the difficulties encountered in administration, the extent of compliance or non-compliance, 
and the general success or lack of success of the code; and an analysis of the operation of 
code provisions dealing with wages, hours, trade practices, and other provisions. These 
and other matters are canvassed not only in terms of the materials to be found in the files, 
but also in terms of the experiences of the deputies and others concerned with code formation 
and administration. 

The Code Histories, (including histories of certain NRA units or agencies) are not 
mimeographed. They are to be turned over to the Department of CoJimerce in typewritten fora. 
All told, approximately eight hundred and fifty (850) histories will be completed. This 
number includes all of the approved codes and some of the unapproved codes. (In Work Mate- 
rials No. 18, Contents of Code Histories , will be found the outline ffhich governed the 
preparation of Code Histories.) 

(In the case of all approved codes and also in the case of some codes not carried to 
final approval, there are in NRA files further materials on industries. Particularly ^-orthy 
of mention are the Volumes I, II and III which constitute the material oflicially submitted 
to the President in support of the recommendation for approval of each code. These volumes 
9768—1. 



- li - 

set forth the origination of the code, the sponsoring group, the evidence advanced to sup- 
port the proposal, the report of the Division of Research and Planning on the industry, the 
recommendations of the various Advisory Boards, certain types of official correspondence, 
the transcript of the formal hearing, and other pertinent matter. There is also much offi- 
cial information relating to amendaients, interpretations, exemptions, and other rulings. The 
materials mentioned in this paragraph were of course not a part of the work of the Division 
of Review. ) 

THE WORK MATERIALS SERIES 

In the ffork of the Division of Review a considerable number of studies and compilations 
of data (other than those noted below in the Evidence Studies Series and the Statistical 
Material Series) have been made. These are listed beloff, gr:uped according to the char- 
acter of the material. (In Vfork M aterials No. 17, T entative Outlines and Su mmari es of 
Studies in Process , these materials are fully described). 

Industry Studies 

Automobile Industry, An Economic Survey of 

Eitu.uinous Coal Industry under Free Competition and Code Regulation, Economic Survey of 

Electrical Manufacturing Industry, The 

Fertilizer Industry, The 

Fishery Industry and the Fishery Codes 

Fishermen and Fishing Craft, Earnings of 

Foreign Trade under the National Industrial Recovery Act 

Part A - Competitive Position of the United States in International Trade 1927-29 through 

1934. 
Part B - Section 3 (e) of NIRA and its administration. 
Part C - Imports and Importing under NRA Codes. 
Part D - E.xports and Exporting under NRA Codes. 

Forest Products Industries, Foreign Trade Study of the 

Iron and Steel Industry, The 

Knitting Industries, The 

Leather and Shoe Industries, The 

Lumber and Timber Products Industry, Economic Problems of the 

Men's Clothing Industry, The 

Millinery Industry, The 

Motion Picture Industry, The 

Migration of Industry, The: The Shift of Tv,-enty-Five Needle Trades From New York State, 
1926 to 1934 

National Labor Income by Months, 1929-35 

Paper Industry, The 

Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans- 
portation, January 1923, to date 

Retail Trades Study, The 

Rubber Industry Study, The 

Textile Industry in the United Kingdom, France. Germany. Italy, and Japan 

Textile Yarns and Fabrics 

Tobacco Industry, The 

Wholesale Trades Study, The 

Women's Neckwear and Scarf Industry, Financial and Labor Data on 

9768—2 



Women's Apparel Industry, Some Aspects of the 

T rade Prac tice St udi es 

Comiaodities, Information Concerning: A Study cf NRA and Related Experiences in Control 
Distribution, Manufacturers' Control of: Trade Practice Provisions in Selected MRA Codes 
Distributive Relations in the Asbestos Industry 
Design Piracy: The Problem and Its Treatment Under NRA Codes 
Electrical Mfg. Industry: Price Filing Study 
Fertilizer Industry: Price Filing Study 

Geographical Price Relations Under Codes of Fair Competition, Control of 
Minimum Price Regulation Under Codes of Fair Competition 
Multiple Basing Point System in the Lime Industry: Operation of the 
Price Control in the Coffee Industry 
Price Filing Under NRA Codes 
Production Control in the Ice Industry 
Production Control, Case Studies in 

Resale Price Maintenance Legislation in the United States 

Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. 
Tiac'e Practice Rules of The Federal Trade Commission (1914-1936): A classification for 
comparison with Trado Practice Provisions of NRA Codes. 

Labor Studies 

Cap and Cloth Hat Industry, Commission Report on Wage Differentials in 

Earnings in Selected Manufacturing Industries, by States, 1933-35 

Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-1935 

Fur Manufacturing, Commission Report on Via^cs and Hours in 

Hours and Wages in American Industry 

Labor Program Under the National Industrial Recovery Act, The 

Part A. Introduction 

Part B. Control of Hours and Reemployment 

Part C. Control of Wages 

Part D. Control of Other Conditions of Employment 

Part E. Section 7(a) of the Recovery Act 
Materials in the Field of Industrial Relations 
PRA Census of Employment, June, October, 1935 
Puerto Rico Needlework, Homeworkers Survey 

Administrative Studies 

Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con- 
ditional Orders of Approval 

Administrative Interpretations of NRA Codes 

Administrative Law and Procedure under the NIRA 

Agreements Under Sections 4(a) and 7(b) of the NIRA 

Approve Codes in Industry Groups, Classification of 

Basic Code, the — (Administrative Order X-51) 

Code Authorities and Their Part in the Administration of the NIRA 
Part A. Introduction 
Part E. Nature, Composition and Organization of Code Authorities 

9768—2. 



Part C. Activities of the Code Authorities 

Part D. Code Authority Finances 

Part E. Summary and Evaluation 

Code Compliance Activities of the NRA 

Code Making Program of the NRA in the Territories, The 

Code Provisions and Related Subjects, Policy Statements Concerning 

Content of NIRA Administrative Legislation 

Part A. Executive and Administrative Orders 

Part B. Labor Provisions in the Codes 

Part C. Trade Practice Provisions in the Codes 

Part D. Administrative Provisions in the Codes 

Part E. Agreements under Sections 4(a) and 7(b) 

Part F. A Type Case: The Cotton Textile Code 
Labels Under NRA, A Study of 

Model Code and Model Provisions for Codes, Development of 

National Recovery Administration, The: A Review of its Organization and Activities 
NRA Insignia 

President's Reemployment Agreement, The 

President's Reemployment Agreement, Substitutions in Connection with the 
Prison Labor Problem under NRA and the Prison Compact, The 
Problems of Administration in the Overlapping of Code Definitions of Industries and Trades, 

Multiple Code Coverage, Classifying Individual Members of Industries and Trades 
Relationship of NRA to Government Contracts and Contracts Involving the Use of Government 

Funds 
Relationship of NRA with States and Municipalities 
Sheltered Workshops Under NRA 
Uncodified Industries: A Study of Factors Limiting the Code Making Program 

Legal Studies 

Anti-Trust Laws and Unfair Competition 

Collective Bargaining Agreements, the Right of Individual Employees to Enforce 

Commerce Clause, Federal Regulation of the Employer-Employee Relationship Under the 

Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial 
Regulatory Legislation 

Enforcement, Extra-Judicial Methods of 

Federal Regulation through the Joint Employment of the Power of Taxation and the Spending 
Power 

Government Contract Provisions as a Means of Establishing Proper Economic Standards, Legal 
Memorandum on Possibility of 

Industrial Relations in Australia, Regulation of 

Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com- 
merce Clause, Cases on 

Legislative Possibilities of the State Constitutions 

Post Office and Post Road Power — Can it be Used as a Means of Federal Industrial Regula- 
tion? 

State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis 

Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in 

Trade Practices and the Anti-Trust Laws 

Treaty Making Power of the United States 

War Power, Can it be Used as a Means of Federal Regulation of Child Labor? 

9768—4. 



laS Sy I PENCE STUDIES SERIES 

The Evidence Studies were originally undertaken to gather material for pending court 
cases. After the Schechter decision the project *as continued in order to assemble data for 
use in connection with tne studies of the Division of Review. The data are particularly 
concerned with the nature, size and operations of the industry: and ffith the relation of the 
industry to interstate commerce. The industries covered by the Evidence Studies acccunt for 
more than one-half of the total number ol workers under codes. The list ol those studies 

f0ll0ff3. 



Automobile Manufacturing Industry 
Automotive Parts and Equipment Industry 
Baking Industry 

Boot and Shoe Manufactv.ring Industry 
Bottled Soft Drink Industry 
Builders' Supplies Industry 
Canning Industry 
Chemical Manufacturing Industry 
Cigar Manufacturing Industry 
Coax and Suit Industry 
Construction Industry 
Cotton Garment Industry 
Dress Manufacturing Industry 
Electrical Contracting Industry 
Electrical Manufacturing Industry 
Fabricated Metal Products Mfg. and Metal Fin- 
ishing and Metal Coating Industry 
Fishery Industry 

Furniture Manufacturing Industry 
General Contractors Industry 
Graphic Arts Industry 
Gray Iron Foundry Industry 
Hosiery Industry 

Infant's and Children's Wear Industry 
Iron and Steel Industry 



Leather Industry 

Lumber and Timber Products Industry 
Mason Contractors Industry 
Men's Clothing Industry 
Motion Picture Industry 
Motor Vehicle Retailing Trade 
Needlework Industry of Puerto Rico 
Painting and Paperhanging Industry 
Photo Engraving Industry 
Plumbing Contracting Industry 
Retail Lumber Industry 
Retail Trade Industry 
Retail Tire and Battery Trade Industry 
Rubber Manufacturing Industry 
Rubber Tire Manufacturing Industry 
Shipbuilding Industry 
Silk Textile Industry 
Structural Clay Products Industry 
Throwing Industry 
Trucking Industry 
Waste Materials Industry 
Wholesale and Retail Food Industry 
Wholesale Fresh Fruit and Vegetable Indus- 
try 
Wool Textile Industry 



THE STATISTICAL MATERIALS SERIES 



This series is supplementary to the Evidence Studies Series. The reports include data 
on establishments, firms, employment, payrolls, wages, hours, production capacities, ship- 
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports. 
They also include notes on the principal qualifications that should be observecl in using the 
aata, the technical methods employed, and the applicability of the material to the study cf 
the industries concerned. The following numbers appear in the series: 
9766—5. 



Asphalt Shingle and Roofing Industry Fertilizer Industry 

Business Furniture Funeral Supply Industry 

Caady Manufacturing Industry Glass Container Industry 

Carpet and Rug Industry Ice Manufacturing Industry 

Cemect Industry Knitted Outerwear Industry 

Cleaning and Dyeing Trade Paint, Varnish, and Lacquer, Mfg. Industry 

Coffee Industry Plumbing Fixtures Industry 

Copper and Brass Mill Products Industry Rayon and Synthetic Yarn Producing Industry 

Cotton Textile Industry Salt Producing Industry 

Electrical Manufacturing Industry 

THE COVERAGE 

The original, and approved, plan of the Division of Review contemplated resources suf- 
ficient (a) to prepare some 1200 histories of codes and NRA units or agencies, (b) to con- 
solidate and index the NRA files containing some 40,000,000 pieces, (c) to engage in ex- 
tensive field work, (d) to secure much aid from established statistical agencies of govern- 
ment, (e) to assemble a considerable number of experts in various fields, (f) to conduct 
approximately 25% more studies than are listed above, and (g) to prepare a comprehensive 
summary report. 

Because of reductions made in personnel and in use of outside experts, limitation of 
access to field work and research agencies, and lack of jurisdiction over files, the pro- 
jected plan was necessarily curtailed. The most serious curtailments were the omission of 
the comprehensive summary report; the dropping of certain studies and the reduction in the 
coverage of other studies; and the abandonment of the consolidation and indexing of the 
files. Fortunately, there is reason to hope that the files may yet be cared for under other 
auspices. 

Notwithstanding these limitations, if the files are ultimately consolidated and in- 
dexed the exploration of the NRA materials will have been sufficient to make them accessiDio 
and highly useful. They constitute the largest and richest single body of information 
concerning the problems and operations of industry ever assembled in any nation. 

L. C. Marshall, 
Director, Division of Review.