Full text of "Work materials ..."

liiiiiififii

3 9999 06317 oU' '

OFFICE OF NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW

ADMINISTRATIVE AND LEGAL ASPECTS OP

STAYS

EXEMPTIONS AND EXCEPTIONS

CODE AMENDMENTS

CONDITIONAL ORDERS OF APPROVAL

Ely C. Hutchinson
D. L. Boland
W. M. Chubb

WORK MATERIALS NO. 74

NRA ORGANIZATION STUDIfiS SECTIOl^
MARCH, 1936

Oi''FIC.5 OF i'AMONAL -Ii;. CO VS. 11' ADi4llJIG'"PJLTI0N
Division OF ^;VIE^

9844

ADMINlST:UTr/S Al-TD LE(JAL ASPECTS OF
STAYS
E]a;iPTI0JI3 AiS ErXEPTIOUS
COrE Ai.iEirLj.iTNTS
CONPITIOIIAL OIiDExuS.OF APPROVAL

Ely C. Hutchinson

D. L. Bolend
W. li. Cliubb

NRA OHGAi'JIZATIOH STUTIES SECTIOII
LiAHCH, 1956

1^/3

This stuciy is in effect a series of nrelinin-'^ry renorts on
Exemptions and Exceptions, Stays, and iunendraents by Mr. D. L. Boland
and on Conditional Orders of ApTjroval ty Mr. W. M. Chubb. An additional
section, Part OKE, on Administration, by Mr. Ely C. Hutchinson has been
added. The report was prepared by the NEa Organization Studies Section,
Mr. William 7. Bardsley in charge.

All of the devices here examined, i.e., "Stays", "Exemptions",
"Amendments" and "Conditional Orders of Approval", were 'widely used by
the National Recovery Administration in meeting and attennting to solve
■oroblems arising either during negotiations on loroposed codes or under
codes after their approval. The reiiort deals -Tith the legal and sub-
stantive aspects of the subjects, but because of limitations of time and
TDcrsonnel some administrative aspects of the subjects are not covered.
Appendix Ko. I, in each of Parts TIL to PI\'3] inclusive, points cut areas
for further study. Appendix No. II, in each of Parts T'ffO to FIVE in-
clusive, gives a comprehensive outline for further study of its narti-
c\ilar subject.

At the back of this report will be found a brief statement of the
studies undertaken by the Division of Review.

L. C. Marshall
Director, Division of Review

March 24, 1936

9844

1A3LZ or cc:'v::.:^:s

Pafie

SUJ.lLiARY 1

Part I

ADIallllSTRATIOlI

Procediirrl Aspects ^

Tlo\: Cl'.art - St£,ys 6

Plov; Cliart - Exeirrotions ?

?lov/ Chart - Aiencjie.-its 8

Coiicitional CrCers of Ao rovrl 9

Stay;;, Lxemptions r:ir'. Zjxce:)tioi.;S, CoJ.e Aiuenc,;.;cnts. . 11

Ac'j.iinistiTtivc Aspects 12

P.ec?, jiti.lation 14

Conc.itio:irl Orders of Ai^roval, Frvorable Prctors. . 14

Cov-'Mtionrl Orders of AT.rcvr.l, U:.frvor,rble Factors. 15

Strys, E:'ei;iptions cnC Code A;.iena.ier.ts 15

PA2T II

Introdtiction 13

Clirpter I - leases of PoTTcr 21

Chr;.pter II - IJole'jation of Po''er to G-rpnt Strys 23

Chapter III - Defiriition of the ter.Ti "Stay" 25

Types of Stays 25

Chapter IV - ixthods of Lxtjrcise of, Stsys 23

Chapter V - Cr'-ses of the Lxercise of Pov/er to Stpy -

Types of Code Provisions Affected 28

Tyoes of Code Provisions Suojected to Stays 33

Labor Provisions 33

Code Authority Provisions 3^

Trade Practice Provisions 35

Time of Issuance of Stay 39

Retroactive Str.ys 42

Conditional Stays 42

Denial of Stays 43

Period of Stay 43

Cha^oter VI - Evaluations pnd Concliv^ions 44

9844 -ii-

T.V2LB p y CC:T' ::iTS (Cont'd)

PiUT III

Introduction 68

Cligpter I

Bases of Pov/er 71

Chapter II

Definition cjid Scope of Terms "Er.eiV! ition" onC. "Exception" 79

Clifpter III

I)ele/;ation of Pov/er to Grant or Deny Lxcr.iptions and

Lxce^tions 32

Presio.ent's Keeraploj-iaent A,;;;reenent 83

Codes xuider Section 3(a) 83

Joint AAA end ITilA Codes 84

Crertion of rrtional Industrial l:-ecover;- Board 85

i;ele.2;ation of Power to Lesser Officials 85

Territorial Acrninistrators 85

i.liscellruieous Dele;i'ations 86

I.e^ional Offices 87

Code Authorities 87

Chapter IV

Analysis of ApplicE.tions for rnd Orc.ers of IxeiMptions

and Exceptions - Cjuses - T^^pes - Gcc^e Provisions Affected 88

Labor Provisions 88

Wage Differentials 90

Child Lahor - Apprentices 90

Trrde practice Provisions 91

C-eo-raphical Ori;;in of A'plicctions 92

Period of Exemption 93

Retroactive Exemptions 94

Conditional E7:eu itions 95
98d4 " -iii-

TABLE OF COKTEUT S (Cont'd)
Chapter IV ( Contiraied)

Hefnons - Denial of !IJ:ce. ; <tions 97

Coc.e Activity as to l.xcia itions 98

Generfl lixecv.tive riiC. AOinirii::tr; tivt iSxe- ijjtions 100

IHxei.rition - By Code Provision 101

Chapter ?

Evaluations anC Conclusions 102

PAST IV

Introduction 116

Chapter I - liases of Power 117

Liniitf.tions upon Povcr of Aiuencinent 123

Chapter II - Definition and Scope nf the Terra Aiaendjnent !; 125

Chapter III - Dele;:;ation of Pov/er to A^jorove or

Disapprove Aaencj-ients 128

P r e s i den t ' s H c c;;i 1 1 o ^ m en t Af :r e ei.ien t 1 28

Codes Under Section 3(a) 130

Joint AAA-IHA. Codes 130

Creation of iletional Industrial Recovery Board 131

Delegation of Power to Lesser Officials 131

Territorial Aciministrr.tors 131

Hegional Offices 132

Li.iiitr-tion upon Exercise of Pov;er to Aiaend. 152

Chapter IV - liethods ':>f Exercise of Power of itocucjuent 133

Chapter V - Analysis of Amendments of Codes - Typec

of Code Provisions A-ifectedt 135

Amencanents Aiiectin^^ Application oi the Codie 135

Labor Provisions 137

Hour and. Wage Provisions 133

Code Authority 144

Trade Practice Provisions 146

Liscellaneous Code Provisions 147

Chapter VI - Evalu.ations and Concliisions 149

Appendix llo. 1. - Pi.irther Research - Unfinished Phases of

the Study 152

Appendix ITo. 2. - Outline 154

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TA3LE CJ CCIIT EITTS (Cont'd)

PAP.T V

Pace

Introduction 161

Chapter I - Viu-.t lovers of Cjrii'ovcl of codes, a^jreeiaents

and euendinents were coiii erred b/ tl?.e Act? ... 1G2

Chapter II - Y/liat dele;;ations of pov.'er of approval were

made and what powers retained? 167

Chapter III- Wiat cii-c".ijnstrnces attended the er.rliest xises
uf the device of conditional ap.u'oval of:

(a) Codes 169

(b) A:jreenents 175

( d) Otlier minor ad'iiinistrrtive actions. . . . 174

Chapter IV - Wiat atteupts v/ere made to obtain assent of pro-
ponents to conditional ort'ers of approval? . . 176

Chapter V - ITnat wore the most fretp.ent types of conditions

in orders of approval? 177

Chapter VI - What necessities of administration were served

by conditional orders of aporoval? 178

Chapter VII- V.'hat evidence of coiaplirnce or non-couplience
v.'ith conditions of epproval are to be foui'.d?
Uhat was the le/j?l effect of non-coi.plirnce?. . 179

Chapter VIII-Coulc the desired conditions have been incorpor-
s,ted in the codes tlieos elves v/itho"o.t vjidue
difficulty? 180

Chapter IX - Prou an evaluation of tlie e;:perience related

above v/hat constructive s\''g^'estions cpji be made
to fju.ide new legislation and iroper "plans fcr
a..dministration touchinij ujon the use ef condi-
tional orders of approval? 181

Appendices 182

ITo. 1. Unexplored Soig-ces of i-t-^terials for Further Study 133

I'o. 2. Outline 184

i'O. 3. I/etails of various types of conditions
in orders of Fp;u'ovr:l, covering';; fll
basic codes of ?rir coiapetition. 190

9844 -V"

_1-

SUIMA2Y

This work is composed of five "Parts" snd is an assembly of so-
called "preliminary drafts" of reports prepared 'Dy staff members of the
Adiiiinistrative Protlems Review Unit of the KEA Organization Studies
Section, Division of ?.cview»

The reports treat "Administrative Aspects", "Stays", "Exemptions",
"Ai^nclTiSiits^^- ■ and "Conditional Orders of Approval". With the exception
of "Part One", each "Part" contains an appendix, thus eliminating a
f;eneral appendi;:.

PAST QUE

_ ADHIlM I STPc^lTIVE ASPECTS . Part Oiie sets forth the high spots of the
procedure whicxi used the powers of stay, exemption, and code amendment.
Since conc'.itiorial orders of approval were in themselves, a means, in-
cident to code approval, of staying or amending certain code provisions
or of creating exemptions thereunder, tney also are discussed.

"Plow diagrai'^s" showing the progressive steps followed by the
organization in each type of action are shov/n Jind descrited. Actual
records of elapsed tines for putting cases through the procedure are
given.

A recapitulation presents the factors n,s to conditional prdcrs of
approval favoral^le and unfavorable to a.dministration and procedure,
points to the influence of numerous opposed forces, all of which were
present in the administrative pro>)lens of the NEA at one time or another,
and records certain other of the autlior's opinions.

P,AHT TWO

STAYS . The stay as aji instrumentality for the administration of
the National Industrial Recovery Act plaj''ed an inportant part wherever
it was put into effect. It was used "both as a permanent and a tempor-
ary means of meeting, reconciling and at times mandatorily settling
the myriad, newly- experienced prohlems that developed with the ex-
perience of administering the Act.

It was one of several instrumentalities used in the same general
way and each of these is a separate part of this report. This part
deals particularly with the l&?;al rnd substf:ntive aspects of the
adoption and exercise of the power of stay.

Chapter I treats the bases of this power. Its delegation is
outlined in Chapter II. Chapters III and IV define the stay and the
methods of its exercise. Chapter V orings together the causes for
the use of stays and the types of probleus to which they were applied,
while Chapter VI evaluates the facts found and draws conclusions there-
from.

9844

~2—

PART THBEE

EXEI^tPTIO MS. In this Prrt the granting "by IIRA of exemptions from
the provisions of codes is treated, especially as to the legal aind
substantive aspects of such grants. An eiq)lanation and analysis of
various types of exemptions is presented and the confusion in term-
inology between stays and exemptions is discussed.

Chapters I, II and III deal with the basis of the power of Exemp-
tion, define the scope of the terms Exemption and Exception and dis-
cuss the delegations of the power to grant or deny exemptions and ex-
ceptions. Chapter IV analyijes the types of application for exemptions,
their effects upon codes and the types of exemptions, such as r-^tro-
active and conditional. Chapter V is the evaluation of the factors
developed by the study and the conclusions drawn therefrom.

The reader is referred to "History of General Exemptions", Work
Materials No. 75, for a discussion of Executive and Administrative
Orders pertaining to general exemptions.

FART EOUR

A]\fflHDMENTS . Although the power to amend codes was not definitely
set forth in the Act, it was frequently and effectively used during
the code period. Part IV of the study discusses the use of such power.
Chapters I, II and III deal with the bases in the Act for the power
of Amendment and its delegation. Chapter IV treats of the methods
by which the power of amendment was exercised. Chapter V analyzes
amendments and gives the types of code provisions affected by them,
and Chapter VI sets forth the author's conclusions.

F.iRT FIVE

CONDITIONAL ORDER OF APPROVA L. The first executive order issued
by the President approving a code under the National Industrial Re-
covery Act — that for the Cotton Textile Code ~ was a "Conditional
Order of Approval." It contained thirteen conditions which had to be
satisfied before complete approval could be granted. Final approval
was granted subsequently by a second order.

Following that first order, a great many codes were approved by
the "conditional" method. The phrasing generally was such as to create
doubt as to whether the codes so approved were actually effective as
to those provisions which the NRA fully approved, until the conditions
in the order had actually been met. This question is one on which there
was no adjudication.

This part of the study discusses the. various aspects of condi-
tional orders of approval and includes a list of sucli orders and the
conditions they contained.

Chapters I and II are on the powers of code approval as conferred
by the Act and their delegation. Chapter III discusses the circum-
stances which attended the earliest uses of Conditional Orders of
9844

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Approval. Chapters IV and V doal with such matters as proper repre-
sentation of industry, assent of proponents and prevalent types of
conditions. Ch;'pter VI is upon the value of the Conditional Order,
administratively. Chapter VII deals with industries' compliance with
the conditions and the legal effects of non~corrpliance, while Chapter
VIII endeavors to answer the question whether codes could have been
so written as to avoid the use of conditional approvals. Chapter IX
is an evaluation and conclusions are drawn therefrom.

It is questionable whether the Act contemplated or permitted the
effective approval of voluntary codes when the order of approval con-
tained conditions not specifically assented to.

If, as appears, codes approved in this manner were really pres-
cribed, as provided for in Section 3 (d) of the Act, there is reason
to question the authority of the Administrator to sign the orders of
approval. The reason for this is tha.t the delegation of power to the
Administrator to approve codes specifically excepted prescribed codes
under Section 3 (d)

In general, little or no attempt was made, as a controlled pro-
cedure, to obtain assent to the conditions contained in the orders
of approval before the announced effective dates. As a rule, compli-
ance vdth the conditions was tardy.

9844

~4.

PAET OITE: A2ICEIII STRATI Oil

Ely C. Hutchinson

9844

-5-

PAHT ONE
ADLilinSTEJi.TION

I . Procedural Asoects.

All four of the title subjects of this study were instilments
widely used ty the National Recovery Administrstion to meet or at-
tempt to solve prolrlems arising in the negotiations over proposed
codes or under the administration of approved codes. The authors of
the parts of the study dealing with the particular subjects have treat-
ed especially their legal and substantive aspects. Yet, their admin-
strative use and the procedural aspects of such use are olivioiisly
important pr.rtr, of the subjects.

Stays, Adiaendments pud Exemptions and Exceptions were handled
administratively in fairly unifonn fashion by all the industry divi-
sions of K3A and generally in accordance with the requirements of the
NRA Office Manual (*), after it was issued in Aagust, 1934. Prior
to the issuance of the m^inual, procedure for the various administra-
tive functions was established by office orders or memoranda ajid this
sar.e practice was follo-.ved when it became necessary to modify the
manual instx-uctions more quickly than the new manual sheets could be
issued. Thus, the manual was never quite up to date but served, rather
to record the changes already put into effect.

Using the data, obtained from the manual, modified by later mem-
oranda and supplemented by personal inquiry of qualified personnel,
the author prepared a series of "flow charts" showing the procedure
for the different types of actions (**). These charts are reproduc-
ed on the next three pages in illustration of the manner as of April
10, 1955, in \Yhich Stays, Exemptions and A-iendments were handled,
according to the general practice. 'There were exceptions in some
divisions, but none -were serious.

Tile broken lines used in the dirgrnms to denote intermediate
movements, conferences, etc. between the numerous administrative units
should not be thought of as representing r?. simple and direct exchange.
On the contrary, these exchanges and conferences were highly complex.
They arose from a continuous and frequent Iv prolonged effort of the
deputy administrator in charge of an action, to contact the people he

(*) See KHA Office Msnual - Central Eecord Section - NRA Files.

(** ) Report of the Committee for the Stud^/- of Administrative
Procedure, Hay 21, 1935. Central .Record Section - NRA
Files.

9844

STAYS

-ft-

PIRT ONE

Any Int. Pty,
i-,

^ Depo Adn.

I Ind.

Code Asst,
— J —

-.it.

Div, Adn.

Adr.u Off, r~

Lat,

— yr"

Con.
— TT"

L.D<
— 7r~

E&P

Advisory Boards

Ind. - Industrial

Lab. - Labor

Con. - Consumers

L.D. - Legal Division

E&P - Research & Flapping

Steps of Progress

Intermediate wiove-
nents, Conferences,
etc.

In Exceptional Cases

■•■- - After Signature

1. Emergency Stay nay be signed. "Pro tenpore" by Division Administrator,

2. Division Adiuinistrator may call public hearing.

3. Field investigation by Compliance,

9844

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PART ONE

EXEMPT! OITS

Code Autho

-vkji:

Any Int. Tty.

#~'

Depo Adm

I llndo

Lab.

Con,

L.D,

Cede Ascto

DiVo Adn.

7<; —

Advisory Boards

Ind. - Industrial

Lab. - Labor

Con. - Consumers

L.D. - Legal Division

R&P - Research & Planning

Steps of Progress

Intermediate Move-
ments, Conferences,
etc.

In Exceptional Cases
After Signature

Delays

Communicate with U, S. Snpioyment Service,

Field investigations by Complir.nce,

Possibility of referring cases to Advisory Council,

" " appeal .
Emergency e::emptions nay be signed "Pro tempore" by Division Ad-
ministrator.

Division Administrator may call public hearings,

fcy be reff erred to Administrative Officer in special circuastancest
Compliance Officer has authority to grant exemptions if Division
Administrator fails to act within 3^ hours.

Sb44

Ai'Sl^JDIffiKTS

-e>

PART ONE

Any Int. Pty

^ Code Eec.

Adv i s .
Council

Con.

Leg. D.
7;

y. .v.

Advisory Boards

R & P

— 7S

Ind. - Inaustrial

Lab. - Labor

Con. - Consumers

L.D. - Legal Division

E&P - Research & Planning

Steps of Progr<=,3s

Intermediate i'iove-
ments, Conferences,
etc.

In Exceptionrl C«ses
..fter Signature

9844

-9-..

was supposed to, within NEA, in order to get the views of some, recoro-'
mendations of others and instructions of still others and to endeavor
from all to effect a reconciliation hetv/een the views, often opposed,
of members of the industry and NUA,

As of April 6, 1935, there were nine rppli cations for stays still
in progress through NEA which were more than thirty days old and still
incomplotci. The actus.l time thus far in process for th-ese ranged
from 41 days to 240 days. Two cases had "been between 61 and 65 days
in progress. Three cases between 126 and 131 days; one case between
201 and 205 days; and one case between 2S3 and 240 days. Between Sept-
em.ber 1, 1934, and February 1, 1935, seventy three stays were granted.
Tlie elapsed time for putting them through 1-IHA procedure ranged from
1 to 20 days and 301 to 220 days. Tliere were two cases in the longer
period. Tiie weighted average tine was 42 days.

As of April G, 1935, there were in process of ITRA. procedure 293
cases of proposed amendments more than thirty days old and incompleted.
The actual time these cases had been in progress ranged from 31 days
to 332 d.ays. The cases were well scattered between these extremes,
with 43 cases aJready 150 days or more in the process of completion.
Between September 1, 1934, and Febraary Si, 1935, there were actually
concluded 204 amendments to codes and the time in process varied be-
tween L-20 days and 301-320 days, there being one case in the latter
bracket. The weighted average of actual completion tines was 100 days.

As of Api-il 6, 1935, there were in process of NBA. procedure 300
cases of exemption more thaxi thirty days old and incorapleted. The
actual time these cases had been in progress ranged from 31 days to
278 days. There were still in process 213 cases between the ages of
175 and 278 days. Between September 1, 1934, and February SI, 1935,
there were actually conclud.ed 580 exemptions. Tlie time periods for
these varied between brackets of eight in 1-30 days and one in 201-
220 days. The weighted average time for completion was 60 days. (* )

A. Conditional Ord ers of Approval.

Conditional Orders of Approval of codes were the first evidence
of the emergency pressure method of codification. Each industry was
invited to prepare its own code of fair cpnpetition. Those industries
commanding the greatest man-power were concentrated upon first by NEA
in code negotiations, since their codification should get the greatest
niunber of men back to work. Many provisions included in the earlier
codes were copied into the ones that followed. This was the quickest
way to get something together and since there was no NEA model code
with official sanction until November 5, 1933, (almost five months
after approval of the Becovery Act) ajid but few policy announcements,
the method was open to cumulative error.

(* ) Tliese figu.res are from the Eeport of the Committee for Study of
Administration Procedure, May 21, 1935, Central Becord Files —
(NEA files)

9844

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■ At an early date doubts arose as to the truly representative
character of some code sponsors. Protests and opposition to the ideas
of coimnittees acting for the sponsors develpped at the public hearings,
sometimes after weeks of preparatory negotiation between IIRA and the
committees.

I'eanwhile, the declared policy of NRA. was that an emergency exist-
ed and no stone should be left unturned to get industries under codes
and men back to work. Time was of the essence in all procedure.

Industries for the most part responded Cooperatively. But despite
this,' differences arose between NRA and industry and between representa-
tives of the same or related industries. Although most of them were
amicably settled, times came when a few conflicting views were dead-
locked and were, in the opinion of NRA, causing unwarranted delay.

The prospect of continued disagreement in these and other circum-
stances which tended to slow down industry codification, was met by
accepting those parts of the codes as to which there was accord and
issuing an order for their approvaJ, conditional upon the acceptance
by industry of certain limitations proposed by the NRA to adjust the
deadlocked issues. An executive or cidrainistrative order of this type
was a Conditional Order of Approval.

Sometimes tne conditions had the effect of modifying certain code
provisions. Sometimes they nullified them. Sometimes the effect upon
the code was permanent and at others, temporary.

Usually the order approved the code conditionally upon the stay
or amendment of certain provisions, the providing of exception there-
from or the addition of other provisions. This procedure was generally
successful in getting the acceptable parts of a code into operation
without the delays which would most certainly have followed refusal
of the NRA to act at all until the code was acceptable in all details.
The method, nevertheless, frequently changed the status of a code from
one voluntarily entered into, to one in which certain conditions were
imposed by NRA.

Provided that the industry to which a conditional order of approval
had been issued had a code committee which was representative of the
industry, the procedure generally resulted in the acceptance of the
conditions by industry and the full effectiveness ef the code as thus ^.
modified. But where the representation was in doubt, or where someone
made claim that the application of the conditions was unjust, or where
a claim was made that the conditions had not t?een submitted to the same
procedure as that followed for the regularly accepted provisions of the
code, effectiveness might be in doubt.

It is not entended to create the impression that all conditional
orders of approval were written with the intention of imposing condi-
tions upon industry. Yet there is only one case of record in which,
on acceptance of the conditions, a second, clear-cut order of approval
was issued. This was in Code No. 1, Cotton Textile Industry. Hie
first order of approval was conditional. The second was final and

9844

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■anconditional.

It appears clearly that as a matter of procedure there was no
adiuinistrative provision by NUA. by -.Thich an entire industry could be
heard on the conditions of approval made by HRA.

jlji approved code, apart from coi.ditions in the order of approval,
had been subjected to the full process of public notice and hearing
and opportunity for all who were interested to participate in its
fonnulation or, at least, to offer' objections. Tiie codes which v/ere
subjected to conditional orders of approval, on the other hand, con-
tained conditions inserted by IJRA. without public notice or hearing,

.'^ . Stay s, Ecenipt i_ons_aiid Except ions, uo de .Araen dment s.

A procedural application of the Stay w&.s established by Executive
Order No. 6205-B, dated July 15, 1933, which provided that those who
had not in person or by representative participated in establishing
or consenting to a code and who claimed that applications of the code
were unjust, should by applyin^^ within ten days after the effective
date of the code, be given an opportunity -for a hearing and that no
liability to enforcement, of .the code would be incu.rred by the applicant
pending the determination of the issues raised. This provided a second
line of protection for those who had not objected to provisions of a
proposed code in the course of the procedure through which codes passed
before receiving approva.l.

Tlie Administrator wa.s not given the poT,'er to stay code provisions
after a code had been approved, •until Pebr.iary 8., 1934, although he
was given the power of approval of the "elimination" of code provisions
on December 30, 1933.

A request for a stay could originate v^ith the code authority or
any interested panrty. It was referred to the deputy administrator in
charge of the code involved. The deputy then sent notification of the
request to the three advisory boards, Industrial, Labor and Consumer,
and to the Legal Division and Research cjid. Planning Division, all of
which discussed the proposal ainong themselvesj and sometimes with each
other, and wrote their views to the deputy. Upon conclusion by the
deputy, sometimes following innumerable conferences and adjustments
as to the proper action for UPJl to tpice. he would have the order drawn
with the assisteiice of the Legal Division, and would forward it to the
division administrator's code assistejit. Ihen, for the first time, the
Review Division was contacted to pass upon the conclusions of the deputy
and to review them for policy and consistency. The Review Division
had its own legal staff and it was not unusual for it to differ materi-
ally with the members of the Legal Division. Vflien, in the opinion of
the Heviev/ Division, the deputy's conclusion or its presentation was
not as it should be, the file was returned to the code assisttint with
appropriate comment. Thence it was returned to the deputy whose duty
it then was to satisfy the requirements pointed out by the Review Div-
ision, provided its recommendations were accepted as- being correct.

9844

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The original action of the depiuty soraetifaes required weeks to
consummate. The second action, at the instsaice of the Review Division,
frftquently took as long or longer if the corrections were in contro-
versial matters. Soiaetir.ies this process was repeated a third time
tefore every view was satisfied or otherwise disposed of.

As the procedure was organized, there was no provision requiring
tact tetween the deputy and the Review Division while the deputy was
first preparing his case, so that there could "be no assurance that
his action would "be approved until it had been completely prepared and
submitted.

When finally all the interested units were either overruled or
satisfied, the order went to the division administrator for approval,
thence again to the Review Division, thence to the Administrative
Officer for signature and thence to the Code Record Section for record-
ing.

Except as to the number of steps required and_ the number of units
of NRA to be referred torn as sho\mi by the "flow" charts above the pro-
cedure for handling exemptions and code amendments was similar.

1 1 . Administrative Aspects.

Stays, exemptions and code amendments were indisjDensable instru-
ments in the reconciliation of the manifold conflicts, controversies,
overlaps of code jurisdiction, code authority aggressions, geographical
labor provision disputes and other problems constantly appearing be-
fore the administrative staff of the IIRA from almost. as many directions
as there were industries and trades.

The primary business of ITRA was of course the making and the ad-
ministration of codes for industries and trades. Each code had certain
tasic provisions, and rules as to their acceptability (*) were grad-
ually developed from the days when codes were assembled largely on the
basis of provisions in or experiences gained from those already approv-
ed. Elsewhere there have been discussed the circumstances under which
the code definitions of industries and trades were written, why they
freq:uently overlapped and how problems of overlappiiig definitions,
multiple code coverage and classification arose (**).

(* ) National Recovery Administration Bulletin No. 2, Basic Codes of
Fair Competition, June 19, 1933; also, Office Manual, Index
11-1000-1999, Code Mailing and Amendment, September, 1934.

(** ) "Problems of Administration in the Overlapping of Code Defini-
tions of Industries and Trades, Multiple Code Coverage, Classifying
Individual Members of Industries and Trade - A report of the Divi-
sion of Review. NRA files.

9844

-12-

Adjustments were mnde frequently in these types of cases ty the
use of stays and exemptions and amendments. 'Bie types of cases for which
adjustment had to he made were many more than had "been anti ciliated.
Then too, a great deal of ingenuity ras used in their presentation to
NRA hy industry. The WRA in turn undouhtedly suffered from shortcomings
of its own administrative concepts, or5;.aiization, personnel and proced-
ure.

The wide discretion ai,ion._5 deputy administrators in some respects
and the lack of divisional coordination resulted in closely similar
problems "being settled in different divisions, and even in the same
division, through widely differing administ'rcitive approaches. This
situation was aggravated by the lack of a clear definition, administra-
tively, betv;een, for ex;imple, exemptions, stays and exceptions; aaendmrnt
and TTiodif ications;' intirrprift^tions and explanations. (*)

At first the term "Exemption" included "Exceptions" and "Stays"
as well (**).

later the term "E:-:Gmption" was described as any ruling whereby
an individual group or class " vithin cin industry " is released from the
full operation of "a cc de provision '' (*** )

Still later the KHA personnel was ihstincted that "To preserve
uniformity of iisa^e, the term 'Exceptions* will not be used as a synonym
for 'Exenptions' " (****)

Hie terms "amendment" rnd "modification" were used interchangeably
until September, 1934, (***** j after which tne Office Manual permanent-
ly established the term "amencfxient" '^md discontinued the hitherto more
or less synonymously used terms of "modification", "supplement", "re-
vision", "addition'! ?nd "adjustment."

(*) See Administrative' Interpretations of NUA. Codes - A

Eivision of Review report.

(**) Administrative Order X-27, May 5, 1934. ' IIEA files.

(***) Part III, par. 3210, Office Manual, Sept. 1, 1934.

(****) Ibid.

(*****) NiLV Office Manual, Part II, Inde:.'; 5010.

9844

-14-

The records show no noticeable unifoiroity in selecting any one
instrumentalit/ as the proper means for reconciling problems in the
same category. Tliey do, however, reflect an effort to keep the codes
in order as far as possible by a consistent process of pjriendment when
opportunity offered. On the other hand, code authorities were very
cautious about requesting amendment of their codes, since they were
aware that an opening of a code for araendment might lead to the pro-
posal by NHA that more changes than those requested by the industry
be made.

Pending the working out of amendments, stays were used as a pro
tempqri* -sclution of some difficulties and sometimes such temporary
stays were so maintained as to have practically permanent effect.
The service codes were virtually placed in suspension as to all pro-
visions other than those pertaining to labor, by the exercise of the
stay. At other times the provisions of dne code were summarily stayed
by NEA to avoid hardship in cases of overlapping codes. Stays were used
frequently to eliminate code provisions which IIRA studies or revised
policy determined were objectionable.

III. Recapitulation ;

.Conditional orders of approval as used by ITHA were subject to two
interpretations in administration:

A. Favorable Factors

1. Tliey were effective in short-circuiting the regular
methods of code formulation, thus aiding the purpose
of immediately getting industries under codes.

2. They avoided delays in putting the immediate desiderata
of codification (minimum wages, maximum hours for lal/or,
reemployment, etc.) into effect.

3. They effectively closed arguments between NBA personnel
and industry representatives, featured by unwillingness
of industry to modify its position to conform to policies
of NHA.

9844

-15-
B. Unfavora'ble Pactors ;

lo The conditions in the orders v;ere frequently of such nature
.as to practicrdly chcnKQ the code's status from voluntary to
imposed.

2. If the conditions in the order were not met, there was
question whether or not the code was legally in effect.
(Flat Glass Mfg. Industry, Code Ho, 54l) and enforceable,

3. The method of inserting so le conditions into an- order of
approval evaded (intentionally or not) the orocesses of pro-
cedure adopted for voluntary code formulation.

4. The use of conditional orders of ap'oroval involved the
question of whether they v/ere proper procedure and,' therefore,
good administration.

Stays, B:;emptions and Code Araendments :

These instr\ii-ients of adr^iini strati on v/ere used widely to adjust and
reconcile proDleras resulting from the policy and procedure of code
malcing. In the earlier days each was apiolied lar/^ely according to the
personal ideas of the III-iA official having the case in charge. There
were no general rules rigidly regulating the use of each. To the end
of the code period some deouty adiiinistrators differed in their opinions
as to the proper application of sta^'^s, exemptions and amendments to
certain prohlems of a6.ministration and frequently each could point to
•erci sting exaftiples' in su]pnort of- his opiniono Ercpedicncy frequently
dictated the selection of the instrument for accomplishing a desired
ende Procedure for applying the instruments was cfomplicated oy the
administrative practice of interposing additional checks wherever and
whenever a new weakness or failure of organization appeared.

The author's study of the administration of ITHA. in connection with
this and other reports, has engendered som.e ideas vrhich are here re-
corded:

Ic Wrapped in the prohlom of administering the IIIRA. \/ere
definite elements which vraro opposed socially, economically
and industrially, and few indoud of those responsible for
the administration know ho'.7 to relate them, or what to ex-
pect from them, v/ell enough to make the f-'ondamcntals plain
to the men 'v7ho were to make the iHEA a success. A few of
.thuso opposed forces \"crc:

Capital and labor

Honopolj'' and competition

Controlled economy and Lais so z fairc

Agriculture and industry

Big business and little business

Mechanization and unomplo;"ment

Pair competition and destructive competition

Now industrial products and old

Seller and buj/cr

9844

-16-

2. Some of those forCv,s v.'crL nroscnt- in practically every-
situation vdth -..iiich administration had to deal.

3. The objectives of iJIPJl fut-orc as v/oll as .irosent, per-
manent as v;ell as cmorgcnc;", \7crc never sufficient!;''
knovm to or understood by raanir of those entrusted uith
the execution of its policies and procedure, to procure
the o^^tinu:!! efficiencj'' in administration.

4. For the nost p»rt, personnel v/as faithful and energetic
and gave all it had in the effort to do what v;as inmed-
iately in front of it, "but many officials had little
idea v/hat it vras all aliout or the time to find o-at.

5. In any large and grovring organization it is necessar;''
: ' to depend to a great e:ctent upon the juagnent and

initiative of individurils to maintain the policies and
carry out objectives. Hov; could this Dc done to best
advantage i.Then the- philosophy and many objectives of
administration wore obscure and little understood?

6. The logical thing happened, namely, administration
rules nere bid.lt to correct errors v/hich occurred be-
cause there had been no rules. Thtis, -.vhile this tended
to -correct previous troubles it did not prevent the
occurrence of ne'j ones.

To conclude, it is believed that this chapter upon the administra-
tive aspects of stays, e:;emptions and code amendments and conditional
orders of approval, taken together with the individual reports (*)
contain sufficient proof to confirm the statements that:

1. . There v/as no comprehensive plan of classification of

industries and trades upon vdiich to found a general
administrative -oolicy and coordinate the procedure
for industry codification.

2, There v/as no authoritative unit vrithin I'tpJi. whose sole
piorpose it was to correlate administrative experiences
and engage itself energetically in advance planning of
the procedure necessary to keep the organization aliead
of its problems.

It is not claimed that the removal of these two deficiencies
\70uld have corrected all the troubles. It \;ould, however, have been
effective in reducing the numbvir of problems and improving the pro-
cedure and, consequently, the dispatch vdth v/hich the problems re-
maining were handled* The cumulative effect v/ould have been greater
administrative efficiency.

(*) Parts II, III, IV and V hereof.
9844

-17-

FART TWO: STAYS

D. L. Boland

9844

-18-
INTEODUCTIOH

The NKA Organization Studies Section of the Divisiur jf Review has
designated the subject of stays as r matter for separate study. The sub--
ject treats '?'ith the exercise of tnis particular form of administrative
power by the National Recovery Administration. The various rroblems,
questions, and difficulties attendant upon the administration of the
National Industrial Recovery Act (*) were in many instances met and in
some cases postponed by the use of the "stay". Its use ras widespread.
Its purposes and intents covered all phases of NSA from the vie^fTDOint cf
legality, policy, and administration.

The evidences of the use of the stay are found in the KRji. files
and records, from v/hich the bases of this report were derived. Invest-
igation of the files for information relating to the various subject
headings set forth in the table of contents were made. Compilation of
the material obtained and the digesting thereof were conducted for the
main purpose of presenting in this preliminary report various problems,
which, to the author of the report, seemed primary and important. The
investigations and the report thereof embodied herein concern'j tlie-
issues presented by the exercise of the power of stay as a legislative
problem. The bases of power set forth in the Act, the reasonable im-
plications therein and deficiencies thereof, both real and apparent,
have been the background of this investigation and preliminary report.

This report tells of aoministrative action legislatively conferred
and legally delegated. The latter phase has been a further subject of
study and the report sets forth the various administrative delegations
of power and references to unauthorized uses thereof. The phases of •
administrative delegation of power i^hich are considered herein refer
more to the actual exercise of the power in a suostantive manner rather
than administrative details and procedure. Investigations and apprai-
sals of the various administrative mechanics as to the handling of a.v^-
lications, routing of papers and other procedural phases have not been
considered.

A study in its entirety of the files, orders of approval of codes
and of amendments,, and other official pronoujiceraents of the NRA relat-
ing to codes which were in some way subjected to tne exercise of the
power of stay was impossible, at least for tne purpose of this report.
The study con-.erns itself with the orders of approvals of five hundred
and twenty (520) codes, (Codes Nos. 1 to 520, inclusive). In addition
a selected number of codes were investigated as to the use of the stay
where this administrative power was used in specific cases other than
in the order of approval of a code or amendment thereto. The list of
such codes is as follov7s:

LIST OF CODES EXAMINED

Cotton Textile

Shipbuilding and Shiprepairin g

(*) 48 Stats^ 195 (hereinafter referred to as the Act)

9844

-19-

Yfool Textile

31ectrica 1 K-nrnfacturinf.;

Coat and Suit

liice Manuf-'^.ctiiring

Coriet r.nd Brr.ssior:;

Legitmato Pull Leiijith Draniatic ?.nd Eusic-^.l Tho-^.tric^'l

LuTibcr f.nd Tirrlber Product;:;

Iron and Stee""

Photographic Manufacturing

Pishing Tackle

Hpyon and Synthetic Yarn Producing

Men's Clothing

Hosiery

Automohilo Manufacturing

Cast Iron Soil Pip 3

'iTall Pajier Manufacturing

Sr.-lt Producing

Leather

Motion Pictur:: Lahorrtory

Undervroar and Allied Products Manufactiiring

Bituminous Coal

Oil Burner

Gasoline Pimtp ivianuf--.ct"i.u:'ing

Textile Bag

Transit

Artificial Ploi;i^or and Feather

Linoleum and Pelt Base Man^^fac-turing

Lime

Knitting, Braiding and Wire Covering Mfc'/^liine

Hctail Luiihor, L-uJi-hor Products, Building Materials

and Building &)ecialties
Laujidr;'- and. Dry Cleaning MftCxiinei^y M^imfictiiring
Textile Machinery Manufactv.ring
C-la.ss Container
Builders Supplies Trade
Boiler Manufacturing
Parm Equroment

Electric Storage and Yfet Primary Battery
Women's Belt

Li:iggage and P,nncy Leather Goods
Ice

Boot and Shoe Mpnufacturing
Sadd-lery H^-jnuiacturing
Motor Vehicle P.jt?iiing Trade
Banlcers
Silk Textile
Oj'ti ca 1 Manuf ? c tur ing
Autori3.tic Sprinkler
Umo re 1 la M& nuf a c tu-r ing
LIutua.l Savings Bar^'cs
H-ndicerchief
Throv,'ing
Conrpressed Air
Heat Exchange

9844

-20-

Ptiinp Manufacturing
Cap and Closuro
Lferkin^^ Devi cos
He tail Trade

Paint, Varnish, and Lacquer Mr.nufr-^turing
Business Furniture, Storage Equipment and Filing; Supply-
Asphalt Shingle and Roofing tianufacturing
Dress Manuf8,cturing
Paper and Pulp
Millinery
Can Manufacturers
Wholesaling or Distrihlxting Trade
Scliiffli, the Hand Machine Ilmhroidery and the Embroidery

Thread and Scallop Cutting
Men's Keclcwear
Aluminum
Cigar Manufacturing

The investigation primarily sou: ht tjio jonerjl causes for the admin-
istrative exercise of the power of stay and from the material noted atove,
this report 3.tterrpts to sot forth some of the reasons why the Hational
Hecoverj^ Administration, cither upon its own initiative or upon the app-
lication of some interested party, deemed it nccoscary to either grant
or deny a stay of the provisions of a code of fair competition. An ana-
lysis of code provisions subjected to stays iias been made, with particul-
ar stress being laid upon maximum hours and minimum wage provisions, code
authority provisions and trade practice rules. The author stresses the
preliminarjr nature of this report and the inability to ezihaust all re-
cords, but intends to set forth as a result of the study already made,
some answer to the question - "What did HEA do with regard to the use
of the power to stay cede provisions?" and from the -answers thereto,'
to submit suggestions and conclusions for legislative purposes and con-
sideration.

9844

-21-

Bases o? p o^'s?.

'Tlie Act ras anjrov' d by the President of tne United States on June
15, 195o, An exar.inetirn of the provisions of the Act discloses nn use
of or reference to thevord "rta^", tut throi:ighout the Act there are
sufficient le^^islative declarations which warrant and justify the use of
the DOwer of stay. The theory of the Act v^a^J a delegation of oower to
the President trith certain limitations u.pon the exercise thereof, vhich
delegs-tion required an exercise of administrative discretion as a means
of oroper acainistration of the Act. Section 3 (a) of the Act contains
pertinent language regarding the exercise of the power of the stay. Cer-
tain standr.rds and requirements \:ev>.^ imposed upon the President as to
the jrporovo.l of codes and the eection further provided that inhere the
codes affected persons, the President could, as a condition of his ap-
proval of a code provide "exceptions to and exemptions from the provi-
sions of such code. " This thought of a power of discretion in the Presi-
dent obtains throughout the Act. It is found in Section 10(a) in which
the President was authorised to prescribe rules r.nd regulations and in
Section 10(b), which authorized the Presid.ent to

"cancel f^nd modify any order of approval, license,
jrUe or regu].ation isr.ued * * *, n

In viev; of these specific references in the Act to the power of the Presi-
dent to nake exemptions and to cancel or modify his orders of approval,
it is imru-estioned that the President in the exercise of this power and
the discretion granted to him wb.o permitted to stay the provisions of the
code if he fovjid that such action would effectuate the declared purposes
of the Act,

The Act orovides for various kinds of codes other than those speci-
fically mentioned in Section 3(a) (*) but attention is directed to the
statements in these -oarticular sections that the approval of these vari-
ous t^'^oeF of codes or a<RTeements would have the same effect as a code of
fair cojipetition approved by the President under the provisions of Section
3(a). The power conferred by Section 3(3), when coupled v.'ith the gen-
eral grant contained in Section 10(b), is of sufficient latitude to ao")ly
to all forms of codes and. agreements authorized by the Act.

The po'-'-er conferred upon the President to grant or deny stays was
by the terms of the Act rather general. Limitations were imoosed, but
the ambit of administrative discretion was of wide range. Section 1 of
the Act ret forth the declared policies end. -ourrjoses of the Act and the
President was empowered to exercise this right of stay when "necesse.ry
to cari-j'- out the ouriDOsed of this title". Section lC(a) states:-

H*) See Sections 3(d), end 7(c)

9844

"ns the President in his discretion deoias necessary to effectuate
the policy herein declared"

Section zi^) prescribes :-

"for the protection of conuiirnors, coinpetitors, enployoes and others"
and:-

"in f-artherrnce of the imolic interest"

The oi^eratioii and effect of a stay is similar to that of an exemp-
tion. The author has prepared a report on the latter subject and has
considered in detail the "bases of DOwer for the use of this latter men-
tioned form of administrative relief. It is sue^'gested that reference to
the report on Exeinptions (Chapter I - Bases of Power) will show authority
for the statement contained in the foregoini^ •Dara:::;raphs. For purooses of
brevity and avoidance of duplication the content of such cha.-oter has not
been set forth herein.

The reasonable i.iiplications in the Act convey the existence of the
power in the. President to approve a code or not or to approve part of a
code, to imioose limitations or. exceptions or modifications u-oon the opera-
tion of that code. This power connotes the meaninc^, purriose and effect of
a stay aiid as such the use thereof by the President or any official to whom
this pov/er has been properly delet-;ated is vvithin the scope and extent of
the let,'islative declarations contained in the Act.

CHAPT ER II

JELSOATIOIT Qg POWEH TO GHAI-TT STAYS

On June 16, 1933, the date upon which the Act was signed by the Presi-
dent, General Hugh S. Johnson was a-o-oointed by the President to be Adminis-
trator for Industrial Recovery. This Presidential Order authorized the
Administrator for the ensuing thirjry days to do such "other and necessary
work as authorized under Title I of the said Act". The Executive Order of
appointment also ap-oointed a Special Industrial Recovery Board composed of
the Secretary of Commerce as Chairman, the Attorney General, the Secretary
of Interior, the Secretary of Agriculture, the Secretary of Labor, the
Director of the Budget, the Administrator for Industrial Recovery and the
Chairman of the Federal Trade Coininission. The authority conferred upon
General Jolmson was made subject to the general approv.al of this Board' (*).
On July 15, 1933, the liower originally t.,ranted under Executive Order Ho,
6173 was continued with certain limitations (**). On the same date
(July 15, 1933) the President set up a regulation and modified any pre-
vious Executive Order inconsistent with its terms. This regulation is as
follov/s :

"A:iy code of fair co'.rinetition approved by me shall be deemed in full
force and effect on the effective date as stated in the code; but after

(*) See Executive Order No. 6173
(**) See E;cecutive Order Ko. 6205-A.
9844

the a'oorovrl of a cods and ?is an incident to the iminediate eni-orcement
thereof, hearings way "be given "by the Adrainir.trator or nis designated
representative to persons (hereby defined to include natural nersons,
partnerships, asi.ociations or coroor/itionr. ) v/ho ha-ve not in person or "by
a. represe;itative particioated in esta'blishing or consenting to a code,
"but ii7ho are directly affected there"by, and vrho claim that anplications
of the code in larticdlar instances are lorgust to them and vho apply for
an exce-.tion to, or exemotion from, or modification of the code. Such
"oersons so ao 'lying, within ten days after the effective date of the code,
shall "be given an opportunity for a hearing and determination of the is-
sues raised -orior to incurring any li,';."bilit >■ to enforcement of the code,
and the Admi listrator shall, if justice requires, stay the application of
the code to all similarly affected pending a determination Isy me of the
issTies raised," (*)

The su"bstrj.ice of the a"bo.ve quoted 3xec\i.tive Order specifically conferred
UTDOn the Admii^istrator the oorer to stay the application of a code u-oon
the recei -it of an arjplication for aji exception therefrom, not onljr as to
the person -.iho mr de the a\)plicatior., hut also -oersons who were similarly ■
e,ffectGd, This i-xecutive Order makes tha first reference to the use of
the term "stay" and is the first s lecific dv3legr:tion of power from the
President, On Decem"ber 30, 1.933, the Presidrjnt delegated to the Adminis-
trator for Industrial P.ecovery the po-'er of approval of the "elimination"
of any one or more provisions of any code of fair competition. This order
also pormitted the Administrator for Industrial Recovery to ap-orove excep—
tions from the provisions of a code (**).

The 'ooviev granted to the Administrator to act on aoplications re—
ceived within the time period set in Execxitive Order Y-O, 62(. 5-B restricted
the proper and efficient use of the s tey. On Fehr-oarj-- 8, 1934, the Presi-
dent, "bj' Sr.ecutive Order ITq, 6590-A, authorized the Administrator for
Industrial Recovery to prescri"be rules and regulations covering stays and
other forms of relief from codes of fair conpetition approved under Title
I of the s aid Act. This order extended, the TD0-.7er of the Administrator in
such a ma:iner as to permit the use of the stay a.fter a code had "become
effective a.nd did not restrict the use of t'ne power to orders of approvals
of codes.

These po'.rers which ha,d heen conferred uoon the Administrator were "bY
the terms of Executive Order ¥,o. G859 - Septem"ber 27, 1934, transferred
to the National Industrial P.ecovery Board, which Board, "by its Adminis-
trative Orders, a.uthorized the issue-nce of orders of approval -Thich nec-
essarily ir_cl"ded orders of stay "by the Administrative Officer (***),

No f-jrther delegations of por/er to use the stay were st)ecif ically
made. Tl.e pover to stay orovisions of codes as such was peculiarly con-
fined^ to the Adjainirtra.tor and the National Industrial Recovery Board,

(*) See Ex..^cutive Crdor No. 62Ct5-B

(**) Executive Order 6543-A

(***) See Aiainistrative. Order X-93, September 28, 1934

9G44

liowever, thic method of administrative action vv.s, used in some instances
"by lesser of^-'icials of tne National Recover:' AdrainiGtration, The po-.7er
of approval of code exeimDtions, exceptions, and such forms of adminis-
trative relief were from time to time dele;5:ted to le.-ser officials, the
exercise of 'Thich req-.iired administrative dircretion. Often findings,
protests, 73olicies, and other consiclerations resulted in an administra-
tive stay of the intended relief, Fo form , of vritten delegation of this
power v;a5 made as the i^se thereof was considered iTrplied and contained
in the 2^o\7er cf exemption granted by the Aci.Liinir?trntor or the ITationcl
Industrial Secovery Board to the T)articiilar officer,

Acjninistrative action har, slvrays -jreser.ted the question of due
procesG, For -our-ooses of tim.e-savin^ a)id e::Tediencv, it being nracticcll^
impossible to conduct hearings upon all matters submitted to the Adminis-
tration, the Adrainistrator set up the procedure 'c.'.own as "notice or oppor-
tunity to be heard". The operation of this procedure resulted in the ad-
ministrative approval of a particular matter with a ten, fifteen, twent3'-,
thirty, or sicty-da,y stay of the operations of the provisions of that
particular matter in order that interested Dersons might, if they so
wished, object. This power, when used by the Administrator or the Na-
tional Industrial Recovery Board, wa^ in accordance with the Presidential
delegations hereinbefore menticned, but when used by lesser officials of
the National Recovery Adrainistration was in accordance with implied power
which accompanied the particular delegated power rather than according
to specifically'" delegated aixthority.

The President's Reemployment Agreement provided in Par8,^raih 14
thereof for a stay of the lorovisions thereof ^.'ending a su;nmary investiga-
tion by the National Recoverj'- Administration (*), The official exolane^-
tion of the PRa (**) makes reference to Paragraph 14 and in the explana*»
tion thereof states that an individua-1 employer may make application 'for
a stay in accordance i^ith the provisions of Paragraph 14. Interpretation
No. 2, concerning Paragra,nh 14 (***) sets forth the procedure and its •
effect a,E a temporary stay without further investigation pending decision
by NRA, The interpretation states tha.t Paragraph 14 is not intended to
provide for group exce^otions, but onlv to meet cases of individual hard-
ships. 'This report does not concern itself with applications submitted
to NRA in accordance with the provisions of Paragraph 14 of the PRA. It
is true the word "stay" is used in this -oaragra-oh, but in view of the
fact the.t the paragraph is limited to esses of individual application
the consideration of these applications are found in the NILl Organization
Sections Study on Exemptions. No other Presidenticd delegation of power,
to stay the operation of the PRA is foixnd.

(*) See 131A. Ballet in No. 3, Jul:^ 2C, 1933,

(**) See NRA Bulletin No. 4

(***) See NRa Bulletin No. 4

9844

-25-

OIIAPTSR II I

BEFI IMITION OF TKB TET^v l "STAY "

The 'jori "stsy" in its ordinar:^ nieaning is a "staying or stopping,
or state of "oeing stayed; suspension of motion or progre,2sion, a h^lt,
stc-jHc;, stoji, :;. stoppin;3, or nore -usually a suspension of procedure or
execution Ly judicial proceedings or executive mands.te", (*)

Tlie term "stay" in it's legal sense ms nany connotations. It relates
to Gucii tilings as a stpy of foreclosure, a stay of court proceedings, a
stay of an action of Ip.w, and Acts of a Legislature prescrioing a stay in
certain cases set forth in the legislation, a stay of execution (**).

As stated above, there is no reference to the terra "stay" in the
national Industrial Recovery Act and at the heginning of the Administra-
tion of the Act no administrative definitions or explanations of the term
were issued. Chapter II refers to the use of the term "stay" in Para-
graph 14 of the PPA. This reference -'as one of the first occasions upon
which the term "stay" was used by the Administration. The fact that the
interuretation of this paragraph made it apply .to individual cases showed
a disx30sition upon the part of the Administration, to make the term apply
to individu.£!.l applications for relief. As the iidjnini strati on of codes
and of the PBA continued, reference to individual applications v^as made
h?/ the tern "ereraption'' rather than tne term "stay".

Early in the process of code form-olation, the Administration found
that for "oui-'OOses of enfcrcement of policy or recognition of protests it
"became necessary to sta^^, in the order of & Torovel of a code, the actual
operation of -oart of the orovisions of th'.t code, either permanently or
for B. limited period. of time. The use of this method of aministrative
power resulted in the reference to the term "stay", which reference was
actioally confined to orders of approval or modifications thereof. Later,
experience in the administration of codes disclosed the necessity of ex-
ercise of the power to stay provisions of codes alrea'iy ai^proved, either
upon application to or initiation hy the iffiA. Consequejitly, the use of
the terra "stay" wa-s enlarged to include modifications of orders of appro-
vals of codes. The meaning of the term "stay" was that the stay affected
all memhers of an industrj?- or recognized divisions, either geo.graphical
or industricl, and that an> exemption anplied to a single individual or
group of incTividuTils.

TiO administrative definition of the term "stay" was made •'until Ma3' 5,
1934, when the Administrator for Industrial Secovery, hy Administrative
Order X-27, issued rules and regulations concerning the modifica.tion of
and exemptions from approved codes of fair competition. In Paragraph 1
of such Administrative Order it wa.s stated that the term "exemptions"
shall include exceptions and stays and all rulings whereby an individual,

(*) Webster's New International Dictionary, Merriam Edition, 1934, P. 2037
(**) Volume 3, Bouvier's Law Dictionary, Hawle's Third Revision P. 31-55
9844

- 26 -

group, or class is relcap.ed from the full ^Deration of a provision of a
code. This definition partially confirmed the already existing unoffi-
cial definition mentioned above and no chan^^o thereof v/as made in defi-
nition imtil the issuance of the "N2A Office '.'anur-jl in Septemher 1934.
The Office i'iaiiual states, in Part III, p. 3210:-

"The term 'stay' includes any ruling whe;reoy an entire industry is
released from the full operation of a code provision, (i.e., wherehy
a code iDrovision is temiDorarily suspended)."

This subsequent definition restricts the scope of the term "stay" to an
entire industry, but stays issued after this official definition applied
both' to an entire industry and subdivisions of an industry, so that the
original unofficial intention of the aptilication of a stay actually per-
sisted. In other words, the use of the stay would be invoked for the
Construction Industry and the Painting and Pa^oerhanging Division of the
Construction- Industry, whereas an ''exeirption" applied to a single indi-
vidual or group or class of individuals. The meaning of the terra and
the aivove mentioned limitation as to its application has been taken as
a basis for the research conducted for pumoses of this report and the
results obt$.ined from an analysis of various stays will ani^ly only to
those stays Y/hich were issued against entire industries or recognized
divisions thereof.

An.. examination of the records of the various stays issued by the
Administration discloses widesriread interchangeable use of the term
"exemption" and the term "stay". The provisions of a code would be
stayed as to a single individual and an entire industry would be exenioted
from the provisions of the code. (*) The interchangeable use of these
terms resulted in great confusion as to the nature of the administrative
action taken. It is true that the result of the action -was the same, but
this administrative division had been set up and, of necessity, required
separate treatment. Delegations of -power differed as to these forms of
administrative action. This fact requires more strict adlierence to the
defined classes of action. As a matter of record, exeinptions were found
which were in fact stays with the reverse situation equally existent.
The files were equally disorganized. Proper classification of the records
has been attempted, so that this report will be based \ipon evidences of
"stays" as defined in the foregoing paragraph.

TYPES OF STAYS

The sc0T)e of the use of the stay varies as to its extent and appli-
cation. The first type is known as a General Stay - one which stayed all
of the provisions of a code and applied to all members of an industry.
This form of General Stay was utilized very rarely at the time of the
original code mailing. (**)

(*) See ITBA Orders 72-13, and Order 259-37

(**) See order of approval of the Millinery Industry Code (Code Ho. 151,
December 15, 1933) and order of approval of Spice Grinding Industry
Cod,e (Code No. 424, May 11, 1934)

9844

The use of the General Stay 'becfrrne snore ir-ides^read during the period of
administration of codes, particularly i^dth respect to the orders of ap-
provals of an^encljuentSc Any nuiiber of a'^endments of codes were approved
vith ;\ sta;/ of the 0)err:.tion of the rmendinont provisions for a specified
period of time. The stay applied to all raemters of the industry and ap-'
plied to all of the ter.-.is of the amend^Tient. This form of stay was used
particularly in connection with satisf ication of due procecs require-
ments. (*)

Another form of stay was one which was general in its extent as to
code ■:irovisibns covered, but limited in its application to members of
the TBrticiolar industry affected, Tliis type of stay was used on many
occasions in the order of approval of a code and was also used at the
time of the order of avprovel of en amendment to a code.(**)

A t"~pe of stay issued hy the Administration was specific as to the
extent of tlie code orovisions covered and jF^eneral as to the ariplication
to meir-hers of the industry or trade affected. These types of stays were
found, both in orders of a,pprovals of codep. and amendments, (***)

(*) See the Ice Iv^dustry Code, iimendraent 1, Order 43-1, April 24, 1934;
Metal Tallin Ind^osti'v Code, ii.menrijnent 1, Order 154-1, Aio^^ast 2, 1954

(**) The order of aisproval of the Dresr. I'lanufacturing Code (Code lIo.54—
October 31, 1933) stayed all of the provisions of the code as to
manufact-.u"e of dresses whose chief content was cotton, both house
and wtLsh, oending further hearing. The order of approva.1 of the
Knitted Guterwee>r Industry Code (Code '3o. 164 - December 18, 1933)
stayed all of the provisions of the code 'as to manufacturers of
knitted outerwec.r for infants and cnildren, sized from infancy to
age 15, imtil determination of their inclusion in the code.

(***) In the orcer of the aii'oroval of the i.Iedium and Low Priced Jewelry
ManufcvCt-oring Code (Code Ko. 75 - December 23, 1933) the "orovision
of payment of time and one-third for all hoxirs over forty (40)
hours per week to all emplojz-ees was staj^ed until March 1, 1934,
In the orcer of a,-Dproval of the ria,g Manufacturing Industry Code
(Code lo, 352 - March 31, 1934) the homework provisions in tha.t
code -revQ stayed for a oeriod of thirty days, the effective date
of the code. In the order of approval of the labor provisions of
the Brewing Industry Code, the said provisions were stayed for a
period of ten days.

9344

-28-

Another form of stcy is foiind - one 'vhich -'ag snecific as to its
extent in connection with code -irovisions end also cs to its aoplication
to members of industry ,, (*)

CHaPML 11

METHODS or i^xaacisi: or sr.^ ys

The iise of the pouer of staj'- vras evide^iced in various forms of ad-
ministrative action by the HEA, Trie President, on Ma"" 26, 1934, hy Ex-
ecutive Order To. 6723, stayed all of the provinions of the codes of the
service trs,des and industries exceot certain labor "orovisions, Tliis is
an example of the exercise of the •oower of general stay by the President,
Likeirise, the poT/er of general stay was exercised by the Administrator
in Administrative Order X-5, of Pebruar?/ 2, 1934. Tlie operrtion of a
prior aci:.iinistrative order (Adjainistrative Order X-4) vas stayed for a
period of thirty days and later this same order ^^-as -oermanently stayed
by Administrative Order X-8, dated March 3, 1934. In addition, the
National Industrial Recovery Borrd, in Administrative Order X-136-2 sta;-ed
the operation of Paragraph 2 of Adrainistrs.tives Order X-136 insofar as
it related to the code authorities or agencies thereof i-'hich nere sneci"
fically'set forth in the said Administrative Order X-135-2.

The Administrator exercised the pcver of the stay in orders of e"o-
provals of codes, amendments, pnd other miscellaneous matters. The ad-
ministrative use of the sta"^ also is evidenced inse-oarate orders issued
to extend, terminate, or modit;y a stay theretofore issued. On some oc-
casions a separate order was issu.ed to stay som.e or all of the iDrovisions
of a code AThich order, was not linked with an order of aporoval of a code
or an amendinent, but a^ separate and distinct exercise of the "oower to
grant stays.

Causes op 711:; E]csi:-.ci3E op po-;,j]]p.

OP STAY - TYPES OP COPE PllOVI-
SIOl'S APFECTED

Adiinistrative action, such o,s £i stay, may be made for one or vari-
ous reasons. Primarily, its purpose is to afford relief from the equal
application of code provisions; to enable the administrative agency to v
maintain control of and adherence to its rioles and regulations; and also
to prevent the ap-oroval of code provisions which are not in conformity

(*) In the order of approval of the Ins-'olation Board Manufacturing Code,
(Code i^o. 353 - March 22, 1934) the epiDlication of the '^'age and hour
provisions was stayed as to the territory of Hawaii. In the order
of approval of the Cotton Textile Industry Code (Code llo. 1 - July 9,
1933) the provisions relating to limitation of machine hotirs were
sta;'-ed insofar as they a,pplied to the prodiiction of tire yarns and
fabric for rubber tires.

9844

with legal requirements or declared policy. The National Recovery Ad-
rainintrr.tion -ran oresented with problems necessitating this form of
administrative action. Some sponsoring t^rro-a-os submitted codes contain-
ing illegal _oroviGions, Attei^ipts of the Administration to cause a dele-
tion of these ohjectionahle ^orovisions often were of no avail and in
such cr-ses the use of tae po^.'er of stay was necessary, in order to "prop-
erly aporove the code. In sdcdtion, the Administration, "being presented
with the -jroblera of codification of industry pnd the necessity of admin-
istration thereof, naturally anno-oiiced various policies which were de-
signed to cr.rr;'' out the purpose of the Act under which the program was
progressing. Oftentimes code provisions as submitted did not conform
to the pjinounced policy end for pun}0ses of consistency a.nd adherence
to this polic;'- it bece-Tie necessary, x7.pon the part of the Administration,
to exercise its power of stay.

The Im3A, in its adiainistration of the Act, which involved the is-
suance of rules paid reg-alations having the force end effect of law, nec-
essarily wp,s presented with and obliged to follow due process require-
ments. In the early stages of the codification of industry, all of the
proposed, codes were submitted and considered at a public hearing. As
the details of adiiinistration increared with respect to amendment of
codes, interpretations, exemptions, classifications, Code Authority
rights arxd obligations, and other matters, it was found to be a practi-
cal impossibility to sul.ri^it. all of these matters, many of them routine,
to 'the for: lality of a 'ijublic hearing. The recognition of this practical
imoossibilitT' resulted in the set-un of the "orocedure commonly referred
to as "Ifotice of Cp-'oortijnity to be heard". This particular form of
notice involved the uss of the oower of stay. An order was signed re-
lating to the particular ma.tter, but the or^eration thereof was stayed
for a specified period during which interested oorties could object to
the effective operation of the particalar matter approved. This form
of stay T,a,s exteasively used by the administration.

The inver,tigation of the' records of iIRA relating to stays was con-
ducted along tvfo lines. First, -^jhe orders of aoprovals of codes (l to
520 incl\isive) v;are examined and the orders of approvals of ejnendraents
of such codes Y^ere also examined. Second, the records of the following
codes: —

Alu.T-'inran Graphic Arts

Asohalt Shingle and Roofing Ice

Automatic Snrinliler Ladder

Automobile Iianufact\rring Lime

Automotive Parts andL Equipment Lia-nber and Timber

Bituminous Coal Men's Clothing

Boot and Shoe Men's Kecla'rear

Builders Su^oply Trace Iviillinery

Business Furniture r^otion Picture

California Sardine Processing Motor Vehicle Retailing

Can Lianirfacturers Oil Burner

Cabined Salmon Paint, Yarnish & Lacquer

Cerpet and R-'og Ppperboard

C£.st Iron Soil Pipe . Paper and Pulp

9844

-;«-

Cement

Cigar Ilanufacturin^

Coat and Suit

Construction

Cotton C-arnient

Cotton Ter-tile

Daily ITe'.7spaper Publishing

Dress : xnufacturing

Electrical Ma.nufacturing

Fertiliser

Fire Extinguisher

Fishery (Basic Code)

Floor C: Wall Clay Tile

Funeral Sapnly

Furnitiu-e

Gas Appliance and Apparatus

Glass Container

Silk Textile

Plumbing Fi::tures

Puwp Manufacturing

Ra:^/on and Synthetic Yarn

Retail Drug

Retail Trade

Rafoer Mr.nui'acturing

Riiliber Tire Manufacturing

Sc-lt

Schiffli

Set Up Paper Box

Shipbuilding and Shinrepairing

Steel Casting

Trucking

Wholesale Tobacco

Wliolesale Trade

Wool Textile

Canning

Iron and Steel

were exai.:ined for the Tounoose of deteraining v/hether or not a stay had
been issued at a time other then the time of the order of approval of
a code or amend-nient,, The codes examined disclosed six hundred and fifty-
four (654) orders which contained a stay; five hundred and ninety-eight
(598) of such stays were a part of orders of approvals of codes or amend-
ments and fifty—six (56) orders of stays Here issued at a time other
than at the time of the code or amendment approvrl.

The orders were examined as to the particular code involved, pro-
visions sta^^ed, and the reasons for the issuance of these orders. .A
classification of the problems oresented shows tlte general causes for
the issuc.nce of stays hereinbelow set forth:

5.
6.
7.

Geographical problems

Recognition of protests

Legality

I'lecessitv of further study

(a) by l\iRA

(b) by industry or trade
¥RtL policy

Pending amendment

Industrial subdivisional problem^s

Due process

Sixteen orders of approvals of codes stayed the operation of the
codes in entirety for various periods of time, (*) A few of these
stays applied to certain t;^'pes of mrnufacturers; e.g., the order of

(*) See ort'er of approval of the Coffee Industry Code (Code No. 265),

the Fisheries Code (Code No, 3C8), Mayonnaise Code (Code No. 349),

Peajiut Butter Code (Code No. 378), Spice Grinding Code (Code !To.
424).

9844

ar>Tjroval of the Dres'^^ Manufacturing Code (Code No. 64) stayed all of the
provisions of the code as to the manuf actiare of dresres v/hose chief content
was cotton pending further hearing. The order of approval of the Knitted
Oaterwear' Industry;- Code stayed all of the -orovisions as to manufactiirers
of knitted outerwear for infants and children. In some cases the code
was approved for a trial period and stayed in its entirety after a cer-
tain specified date for ■oiu'-poses of further study or amendment, as in
the order of approval of the Millinery Industry Code (Code Ko. 151) which
stayed all of the provisions of the code six months after the date of
the order pending submission of reconmendations regarding continuance
or amendnent of the code. Stays of all provisions of codes were issued,
either at the time of the order of approval or sutseo^uently, when objec-
tions snd protests to such rirovisions were recognized". (*)

The Administration issued a numher of orders of stays of amendments
and the records investigated for the -ourTioses of this preliminary report
show the following:

Stays of cmenainQnts labor ■ 13

Stsys of amendments code authority 85

Sta^'^s of amendr^ients • trade practices — 34

The entire operation of an amendment was usually stayed to meet
due process requirements, i'^*) In some cases amendments were stayed for
reasons other than due process requirements. (***)

On some occasion;- the a'j --lication of a code was stayed for the uur—
poses of effecting a consolidation of that particolar code with some
other code, (****)

Prom tine to time classification orjolems arose vjhich were caused
either hy multi-^le cr ds coverage or overlapping definitions. . The pro-
blems created often resulted in a stay of a code provision insofar as
certain operations under tliat code I'ere concerned, or insofar as certain
members of tne industr;'^ subject to that code were concerned. In the

(*) See Administrative Order ITo. 48C-4 which stayed the operation of
the Structural Steel and Iron Fabricating Code indefinitely and
without the assent of the industry.' See also order of approval
Ilrcc.roni Code (Code To. 234),

(**) See Fabricated Metal Products Code So. 84, Amendment Ho.l; Retail
Farm Ecvuipment Code Ko. 197, Amendment llo. 1; Printing Equipment
Code To, 257, Amendment I-Io.l.

(***) See Cotton Garment Industry Code IJo. 118, Amendment Wo, 15

(****) See Wire Seinforcement Code, the provisions of which were stayed
for the purposes of considering consolidation of the Iron and
Steel Code; the Cleanser Manufacturing Code was stayed for pur-
poses of consolidation with thei Soap and Cleansing Llanufacturing
Code; e-nd the Manganese Steel Casting Code for the purposes of
consolidation with the Steel Casting Code.

9844

-32-

Oriental Ruf, Irrocting Code ITo. 4o7, Sup:leri3nt !To. 1, the order stayed
the provisions of the Wholesale and Distributing Trade as to f.'holesalers
of oriental nogs in order to permit operation under the Importing Trade
Code. Tliese classification problems often arose in connection with
territorial protleins, especially v/here se-nurate territorial codes were
being considered. (*) Likewise stsys "rere issued because of overlapping
code definitions, (**)

A number of orders of aporovels of co6.es embodied administrative
action, v/hich vras in the nature of a stay, biit 7'ere more sweeping and
decisive than the ordinary form of sta-.''. These orders by their terms
"eliminated" provisions from codes and usually Trere invoked in cases
where the particular provision ran counter to legal objections or were
not in conforraitv with the announced -oolicy of the Administration. The
effect of these orders not only stayed the operation, but rendered the
particular provision n-'oll and void and deleted it from the code, Admin~
istrative policy announced that the so-called "merit clause" relating
to the promotion of employees and increase of wages on a merit basis was
against policy and in several "ases the merit clause set forth in the
code was eliminated, (***)

Provisions affecting the rights and obligations of code authorities
also felt the effect of "elimination, "

A'iministrative objection to Administration members of a code autho-
rity being ap-oointed without ejroense to the industry \7as found to be
objectionable in the Foimdry Equipment Industry Code No. 264, so the
order of approval "eliminated" the ^Trords "v/ithout expense to the indus-
try". In the same code labor policy objected to an exception from maxi-
mum hour provisions T/hich included members of the staffs of executives,
executives, and other specified emplovees. The recognition of this'
objection resulted in elimination of the terms "members of their res-
pective-staffs". (****)

(*) See Order LTo. M6-4 relating to persons engaged in canning pine-
apple and can manufacturing in Hawaii. MA files

(**) See Orders Nos. 287-2-i and 288-2-A relating to conflict between

the 7ewspaper Publishing Code and the G-ra.phic Arts Code, I\iBA file's

(***) See Orders of approvals of the Boiler lianufacturing Code No. 38;
Boot and Shoe Industry, Code No, 44; Hotel Industry Code No. 121;
Ox^re^cet-rlene Industry Code. No. 155, and the order of ap-oroval of
the Bituminous Qoal Code No. 24, where a "weighing" clause was
eliminated, ERA files

(****) It shoiild be noted that this order eliminated parts of a code
provision rather than the entire provision itself. For a re-
cognition of objections to labor provisions, see also the order
of approval of the Steel Joist Industry Code No. 495, NEA. files

9844

-33-

Trade practice policy often required the exercise of the nov/er of
elinination vith respect to trade practice orovisions, (*) All of the
rtove e::araples conts,ined clauses or oortions of clauses vhich if per-
mitted to rer.ia.in in the code vroiild have conflicted vrith lep;ality or the
policy of the Administration relating to lahor and trade practice pro-
visions, IiBA insignia; and the like, fjid as a resuJLt, this -oo'7er of
"elimination", which '.Yas in the nature of a stay, was exercised hy IIRA.,

TYPES 0? CODE F ROYISIOIIS SI IE.J..t!:CTEI> TO STaYS

The use of the power of stay covered oractically ever-^ t-roe of
code provision submitted to I'M - labor, code autuorit:)'-, trade practice
and general provisions ^

LABOR P F.OVI SIOI'TS

An exa^-nination of the code provisions stayed, discloses some rather
interesting information. The use of the power of stay 'oy the Adminis-
tration was nost usuall-- applied to trade pra,ctice provisions, and in
a lesser degree to lahor -Drovisions of codes. Of the latter, the maxi-
mum hour and minimum ve-^e -orovision of codes were the ones most usually
stayed, "but the various general la.tor provisions likewise met with the
exercise of this adninistrative power. Tabulation of the records in-
vestigated relating to lahor provisions shovrs the following:

See order of anproval of the Horseshow and Allied Products Code
1^0. 325 (price list provisions); Bulk Drinking Straw Industry Code
llo, 331 (unaerselling clause); Beverage Dispenser and Equipment
Code To, 334 (sales contrary to ouhli^hed price list clause); Opti-
cal IPnolesale Code Ho, 443 (unifor.a discoimts); Metal Hat Die and
Wood Hat Block Industry Code T'^o. 221 (clauses regulating the use
of IIBA insignia')? Cigar Container Industry Code Ko, 135, Amendment
i\ro, 1 (Code Authority oontrihutions clauso). I'IHA. files

9844

-34- ■

STAYS or L.^BO::i PIIOVISIOFS of C0D3S (* )

TYPS OF CODE PF.OVISIOI'T I-TO. OF STAYS

Minimum T/rises 22

IJinimum iTages (Geographical prea) 4

IJinimiii:-! xrages (industrial subdivision) — ■ 4

MaximiTin li.iurs — 23

Maximum luturs (CT-eograohical area) — 1

Maximum houi's (industrial subdivision) 3

Definitions of t^'pes of employees 2

Home v;ork provisions 8

Child labor provisions 1

Piece rs,te — — 1

Method of pajonent of ?7ages 1

Handicapped worl'-ers 1

Equitable adjustment of fiages ■ 1

Most of the stavs of the maxim.uia hour pjid miniraiim nage provisions
were made as a result of protests bv interested parties, either the
wages v/ere too high or too lot/. This fs,ct is more strongly borne out
by the above table showing administrative recognition of difficulties
as to geographical sections of an indiistry and also industrial divisions
thereof. The stavs of home work provisions were the result of labor
policy e.s announced by MA, ns were the "eliminations" which ^ere mostly
deletions of the so-called "merit clause". All other stays of labor
provisions were granted because of exceotional conditions existing in
the industry sAid. the need for particular relief fron the operation of
the particulrr provisions,

C0D3 AUiiioairx Pr:ovisio::s

■jhen the President issued en'^orcement of an order of approval of
a code, problems in its administration were e:cpected and, as the codi-
fication of industries Txrogressed, various policies were announced to
meet the difficulties seen at that time. In adaition, the National
Industrio-1 Recovery Act imposed certain requirements upon the Adminis-
tration as to the truly representative nature within the industry of
persons or groups participating in the f emulation of the code, (**)
The enforcement of these legislative requirements and policy announce-
ments were sometimes evidenced by stays of code authority provisions;
i.e., the code provisions which created the code authority as an in-
dustrial s,d:ainistering body with certain rights thereto and obligations
thereon. The t^npes of code authority provisions subjected to stays,
insofar as the investigation for nurooses of this report is concerned,
were :

(*) In addition, it should be noted that thirteen (l3) amendments of

labor Tjrovisions were stayed and seven (?) "eliminations" of labor
provisi''-ns or oarts thereof were issued.

(**) Section 6 of the Act
9844

-35-

IYP:^S of code PHOVISIONS FUI'SEBR

Election of Code ^i.uthorit-'- - participr.tion

of trc.de as.:ociation 3

Insignia •— 1

Reports end schsdiiles — ■ ~- 3

Coda autiiority finances 81

Liabilit-;- of code authority 1

Incorporation of code authority 1

Label provisions 1

Adjustment of vrages above the rainia'iiin ~ code

authorit;/- proposal — ■ 1

Code authorit"* po?/ers of classification

(a) Industrial or trade — 1

(*) (b) Geographical 2

Legal objections (the reouirei.ients of Section 6 of the Act) caused
the stays of the code authority election provisions in the three cases
tabulated above. The rtays of the label, incorporation, liability and
insignia provisions above noted, prevented the conferring of e:xcess
power upon the code authorities involved. All of the code authority
finance provisions, i^'ith the exception of nine (9), were stayed in
order to meet due process requirements; the remaining nine (9) provi-
sions were sta.yed insofar as Paragraph 3 of Administrative Order X— 36
(relating to a,ssessraents upon the major line of business of a member
of industry) vas concerned. The stays of code authority provisions
relating to classifications were the res'jJ.t of protests by the several
Advisory Boprds of the Administration,

TrADT . PI JlCTICi: PPO VISIONS

Trade practice Drjvisions of a code involved various ty^^ies of
trade regulations, Troxde practice rules can be classified as follows:—

(a) r-oLes renerally a.cceoted in law

(b) rules desirable to indtistr?/ or trade, but not fully
accepted in law

(e) unenforceable r-iles

The hopes of industries and trades in the sponsorship of codes
were hi:;h. It was e:cDected oy many members that the approval of the
code would result in the solation of all their industrial or trade
troubles. Consequently, trade practice rules in all of the above class-
ifications were submitted s-nd strenuously urged by code snonsors. The
early promulga.tion of codes for e.cknowledged reasons of expediency and
the sincere attempt to effectuate the iromediate reeroplo-'/-ment of American
labor resulted in the inclusion of undes-irfble and ^menforceable provi-
sions in coc'es. As Ad; .inistretive e?rperience increased, various

(*) These vrere two eliminations of code authority provisions, both of
which related to objectionable feat^ores of the code authority fi-
nance x^hase of administration,

9844

policicr. y'ere en-unciated, ror^tricting t:ie r;cope of r.ccepta'ble trajde
practice provisions, v;hich policies rrn contrary to the form of the
provisions contained in the above nentioned earl;'^ co.les. This situa-
tion caused code s-oonsors to stress their positio't nore strongly nnd
to refuse consent to '.7ithdrn,v; or delete the particular ohjectionahle
trade practice provisions. In addition, the o.ovjlopraent of Adminis-
trative e:;perience required the initiation of various studies and in-
vestigations to determine the value of particular trade practice rules,
their effect upon small enterprise, cons-ujaers, laoor and other in-
terested groups, the tendencies thereof to\7ards raonopolj'', price fixing
and other evils and also the acljninistrative prohleras presented. In
short, the use of a stay in connection vith trade practice provisions
carried exit the Acliiinistration's determination to adh.ere to announced
policies as far as possible, thereby overriding objections of incoistry
or groups thereof, and at the saiae time enforced the ordinary re-
quirements of administrative lavf. Kiis exercise of foresight did not
obtain in the cases of all codes and, aS a resixLt, the po'jer of stay '
was exercised at a time subseqixent to the approval of a code tr.:on a "'
shov.'ing to or finding by IJRA. that the pr.rticular approved code or pro-
vision thereof nas resulting-; in unreasonable and xmfair aPrlica.tion.

perhaps a correct approach to a study of stays of trade practice
provisions would be an examination of the psxticular code provisions
affected, bearing in mind' the classification of tra.de practice rules
set forth in t/ie opsnin.'^ paragraph of this subsection. (*) iJo attempt
has been made at this time to classify/ the various trade practice
rules, but the results of the investigation shous certain types of
trade practice provisions vrhic. had been subjected to stays, all of
-.Thich are tabulated as follo'js;-

TfPBS OF TRAX iE PP-A CTIC E F~0VI3IC1TS ITO . OF STAYS

ResoJe price maintan.-jice 10

Requirement of charging trans ■;orta.t ion costs to merchant 5

Prohibition of sale of existing stock

(Distress raerchpjidise) 1

Kethod of determining price differentials 1

Definition of "transportation charges from wholssaler

to customer" 1

Provision for pa^Tiient of volurae allcaaices to retail stores 1
Establishment of differential discoimts betiveen vholesalers

aiid other classes of purciiascrB ■ 2

Open price filin^-; systems 19

V/aiting period - open Tarice systems 183

Ilerchandisin-^ plans 5

Prohibition of adulteration nnd v.; i sir abiding 1

Provision prohibiting con^-racto:- to cut nr.torial for

msiiufacture of garment 1

Percentage' limitation upon retail price 2

Provision incorocrating Federrl Pood and Dn^g Act 1

provision fi--ing ..laxiniim disco-or.ts and tarns of s.^le — 15

Provision including employees ' contract in "int^.rft,i-ence

v,'it]i competitors' contrp^cts" clause 1

Provisions perraittin-; man-'of acturor to su--gc;'t res;'Ie nini-

::.tua prices- 3

(*) See Ghapter~y ~

9344 ■ ■

-57-

TYPES OF TRAD E PPAGTICE F?.0 VISI01IS (COITT IIlUhlD) ITO . 0? STAYS

ProhilDition of receipt of ".crip for payment of merchandise- 2

ProhilDition againct dictri tutors -onaer'rellin.;; jottern 1

Prohibition of r.alen contrary to r)ub].ished price lists 2

Prohioition of production of custom-made goods comparable

to standard points 1

Uniform conditions of S'^le and nethods c:f estinates and

quotations 1

Definition of "contractor" 1

Fixed minimum ter..iP of sale 8

Linitation of credit period on goverrj.-i8-.t Tourchase^ 1

Fixed estimate foruula 1

prohibition of future sales and deliveries

(requirement of report) 1

Hequirement of agreG.uent betreen jobber'j and distributors

to fi^-e price schodales in accordance with code 1

Peauirement of a,~rcement to resell in accordpn.ce T;;itl,.

code provisions ' 5

Prohibition of c.uota,tion of "-TlceG other than f.o .c .factory 2

Special rules regardin bids to governuuntal agencies 15

Prohibition of cou2'ions and preniui 8

Prohibition of "breaZ: end tol.e" merchandise distribution 3

prohibition of assumption of conscquental daJ-ia/jes 2

Prohibition of furnishin^;; detailed shop drav,'in;?;s of prodiicts 9

prohibition of fti^-nishing shop drai^inp^s iTithout chrrge 3

Prohibition of destructive price cittin- 9

Prohibition of "pooled bu;"in.':" 5

Prohibition of "trade-in" allovrances 11

Provisions settin~- forth proper trade, mark rules 8

prohibition of diEcem.ination of false inforiiation regarding

products . 6

Prohibition of consignir-ent sales 1

prohibition of inducement of .breach of contract 5

Provision prohibiting sales in evasion of code 4

Mandatory reciuirenont of registration of agents, dis-
tributors, -etc. . 1

Provision permitting free advice and consultation services

to ourchasers 1

Prohibition of absorption of inspection oherges 1

Provision enempting sales to export trade 1

Uniforn acco'OJiting and cost-finding syste'i 7

Prohibition of giiE',rantses 1

Prohibition of rent-^l of -oroducts 1

prohibitio'^. of discoiuits except cash dirco'.'.nts 1

Establishment of tne uniform pgenc" contract 1

Provision requirin;;; p-ablicp.tion of prices covering in-

stallatio:i of prod-acts ■ 1

prohibition of allovfcnces for advertising 1

Prohibition o- attaclxient of IIRA label to o garment not

made u;ider the code 1

TOIi\L 403

Ten of the above list of trade practice provisions were stayed
through the process of "elimination." Those provisions irhich were so
elii.iinated a.re as follows:

9G44

■■-33-
TYPE O:.- C ODE PROVISI OII rO ■ 0? ELinilTATIOlTS

Resale price nrlntonance 1

Ssto.lDlishjnent of i.:p~i:.i-ui;i disccjJits 1

Prohibition of futare nales ryjl fijit^^ro deliveries 1

Prohibition of salef? contrar;' to published price list- 1

Prohibition of imdersellin*?; jobbers bj distributors — 1

Provision pernitting suggestion of Miniau.: resale price 1
Inclusion of employees' contracts in "int.-rf orence

v;ith competitors' contract" clause • 1

Inclusion of Federo.l jTcod and Dr-ug Act 1

Provision prohibiting adulteration and misbranding 1

It should be noted from the above tabulations tJi-.t nost of the
trade practice provisions stayed related to price provisions, either
with respect to uininui,! prices, resale price maintenance, maximum dis-
counts and terms of sale or open price filin;- systems. The tabulation
shows stays of provisions ^,^nich ordinarily -roulo. be classified as de-
sirable and enf orceo.ble; e.g., adulteration pnd misbranding clauses -
interference i--ith mothers' contract. Exe.mi-nation of the stays of these
particular provisions discloses that the stay was issued not because of
the p'urposes of the particular provision but rather that the provision
was improperly dra,fted pr too stringent or extensive in its scope and
application. Ilethods of obtaining iiniform prices, or at least in-
formation as to the cost, equally fell under this gavel of administrative
action. Uniform cost systems, methods of estiiaa.ting pjid Quotations were
submitted by various code-sponsoring pf^roups, but such contemplated pro-
visions ran afoul of either tho legal or policy req_uirements of UEA
resulting in a stay of the orovision.

The exanination of the records of the trade practice provisions
subjected to sta.ys did not in o,ll cases disclose reasons wiiy the paj--
ticular stays had been applied. In addition, the author has not had an
opportLinity to fully oxploro all of tlie records relating to these
various stays, however, some of the files pracl orders examined did dis-
close some res.sons and, for purposes of this report, certa,in classifi-
cations of reasons have been made end a te.bvLlation thereof set forth,
'"'hich gives some picture of wh^' ITTIA. exercised this a^uiiinistrative
re.iedy. The tabulation is as follows;

EEASOHS FCR STAYS OP TRADE PRACTICE PHOVISIOi'S 1KJI3ER

For further investigation 7

For determinant ion of advisability of a;v^roval

of code provisions 2

Consideration and determination by ilRA 2

Consideration of objections to provisions 8

Stays resulting from general studies initif.ti^d by !I2A 188

Further investigation and hearing 5

Pendin:- recognition of code authority 1

Due process requirouents 75

Pending future corapa,ct 1

Industry reauest for additional time for str.dy 1

Pendin submission of evidence by industry 14

Pending satisfactory arrangement for confidential treatment

of price information ■ 2

TOTAL S06

9844

-39-

It iG rc?,lizcr. tlv--t the p.tove r^oneral clr.nsif icc.tions of reasons
do not g'io'.-' th3 pTSTponoT of tiio "fiirtlier iiiveTti£;?,tions and lioaring",
the ''ntu-'.ien initirtsu "b • "TRA or ih3 olDjections beinf] considered.
In so..ie cases partic-jlr.r circ:.iiist^'ji.cer; may j^avc existed in particular
industries ■ hich roquircd fintlier stucy or investigation. ( *) To delve
into these reasons, a fortii r rjid more orJiaustive study must be con-
ducted.

The above tabulation sho";s soi^o one hundred and eighty-eight (188)
trade practice provisions stayed becaus-! of studies beingr conducted by
WRA. Th' majority of these stays 'related to the v.'aiting period betveen
the tii-ie of filin:^: of price lirts with a code 8.uthority and the effect-
ive date of .ruch price listr. Office Order ITo.63, issued by the di-
rection of the Adiinistrator on January 25, 1934, announced that a
stud3" as to price ch,?jajros '.vas being ;.iade and that code provisions re-
l3,tin^' to open price associations 7;ould be stayed in the order of
approval of the code. The scope of this order was later modified, (**)
but its result vras a great nu.iber of st^ys of the waiting period pro-
vision of open price systo'As.

It is of int'^i'est to note that oi^T-hteen (18) stays of trade prac-
tice provisions nere is'~aied, i.'hicj- '•ostponed the effective dates of
fa,ir trade practice provisions .( *^''*)

The investigation of the recorde of stpys of trade practice pro-
visions discloses that nost of the stays wore issued at the time of the
order of a.pprov3l of th~ code and tha,t in s'\ch orders either one or •
several provisions of the code were affected thereby. It is ftirther
disclosed that two hur.dred and eight (206) codes, practically half of
the codes exanined, contained a stay of trade practice provisions in
the order if approval of the code. A list of rush cod.es is set forth
in Append.ix ITo . 2, hereto attached.

Ti:s 01' loS^jju^gs or stay

As stated in Chapter IV, ante, the po'-er of stay -'pr- exercised by
the Actoinistration at tir.es other than the tine "f the order of approva,l
of the code £jid investigation wa,s directed to certain codes to study
ord.erc of stays issued at a ti:.;e siibsequent to an order of approval of
the code. The examination discloses that nost of such stays had been
issued as a result of a;pplication by a particular industry or trade
and that the code provisions from whica relief was sought referred to
maximur-i ho-ju.-s or mininun wages, although a. few such orders of stay re-
lated to relief from trade i3ra.ctice provisions. The schednle set forth

(*) The order of jpproval of tiie hotic.i picture Code, Code llo .124,
stayed, cert? in trade prrctice provisions relating to the pa],""-
ment of excessive salaries to executives and other employees.
This provision si"fected th.e sala'ries of motion picture stars
and the effect of the limitation upon these salaries \7as un-
known at the ti-ie of the order of. approval of the coc-e. As a
resr.lt, the "orovision was stayed xuntil YUA had an opport-'onity to
investigate the effects of tl^e provision.

(**) See Office Orders yos . S3-A and o::-" - Jan-uary 37,1934.KRA ZTiles.

(*=■*) See Order 1^0. 47-3, lanhers Code - Order "Jo. 454-2, Optical
Retail Trade Code. ItfJA li'iles .

9844

-40-

in Appendix ITo . 3, att.-ched hereto, is helpful in detenninin-;: the codec
and code provinions affected and the rea::'>onG advanced for the grant of
a stay sulDsequent to code appr.'-oval . (*)

Appendicen ITor,. 3 pr^d 4 oaid the conment reif-.ting thereto dis-
closes that codes rere li':el/ to he rAihJected to.strys ?.t an" tine
diiring the period of its approvaJ. of ac-"'»i'.iir. tration. Some codes had
no stays for anj' ptirposes 'Whatsoever, others only one md still others
a nui-nhor of stays. The follovin/- schedule lists tlie variotis codes
exajnined i,7hich hac. i.iore th.;,n one str,,7:

CODES HAVIIJG- ilOEE I EM: Ol S STAY IT O. 0? STAYS

1. Cotton Textile : 13

2. Shiphuildiuf :Xid Shiprepairin," 2

3. Wool Textile ' 4

4. Electrical iTJivifacturinj 2

3. Liraher and Timher — 5

18. Cast Iron Soil Pipe 2

21. Leather 4

23. Underwear and Allied Prciucts 4

24. BitTouinous Coal 5

25. Oil Burner ■ 2

33. ?.eto,il Lui-iher 3

38. Boiler Jianuf acturin.- 3

39. Farm EqudpLient 3

46. Ilotor Vehicla Hetailin,-^ 3

.48. Silk Textile -^ 3

54. Throning . 3

60. Retail Trade 9

64. Dress J.'anuf'.ictiro-in? 4

68. Road ilachinerjr ■ 2

69. liillinery aji^: Dress T'-in'-iin^ 2

82. Steel Castin; 4

84. Eahricated Uetel Products--- 4

88. Business Furniture, etc. 5

93. '.feshin.'^ and Ironing Lachinc 4

95. Buff Slid, polishing TTlieel 2

102. Shovel, Dra/^line and Crane 2

118. Cotton Garment 9

121. Hotel 3

124. L'otion Picture 3

125. Upholstery am' Drapery 2

128. Cenent ■ 2

142. Retail Jerrelry : 3

151. Millinery 4

155. 0^y-Acetylene 5

157. Hair Cloth Kanui^acturin-- 2

175. Paper Distrihutin.^ 2

182. Retail Food a:". C-rociry 4

(*) The infor'iation set fortli i^i t'le tabulation v.'as obtained partially

fron the author's exajiinatior. of the JTRA records relatin,f7 to
exemptions ca\C. also the records relating; to stays. The interchangeahle
use jf the term "staj''" and "exerjvption" resulted in the interchajageahle
filing of stays and exemptions, however, for i3vr-ooses of the talnala.tion,
the records relate only to exemptions or stays which '7ere .-ranted to an
entire industry or a recognized suhdivision thereof.
9844

-41- .

coHEs HAvii'g iio:ic ' TA': o-:s stat (cc:ti::;j:d) "O . o? stays

195. TTaolesr.le Food r.ri/' Orocox"'' 3

201. V'-olenpl'; or Dir-trib-ati-.v:- 5

204, pl-unbinr;; FiictureG 3

234. I'o.cp.roni 5

2;37. AlJ-07 Ca-tin- 5

2'J:9 . Tag- 2

25C . "ire ?.od and Tu-te 2

237. printing Equipment 2

250. Ornsiiental ilouldinf 2

264. Foiondry Eauipraent 3

256. Inleoid U-ater Carrier 2

257. Used Textile Ba£: 2

274. Sav7 a:id Steel 3

232. Restaurant 4

285. Beauty and Barber Slio-ri 2

287. C-rapMc Artn 5

298. Uipin^: Cloth 3

313. Steel TTool 2

206. ii'ica. 4

308. Ficliei-/- 5

311. P.eady I'irced Concrete ^ 2

319. ITev/spaper Printing Pres3 2

327. lachine-Applied Strple, etc. 2

329. L^Dholsterj'- Sprinr— 3

332. Ladier5 Handbaj 2

334. Beverage Dicpensin"; 3

341. Fiber and I.'etal 7or]c lutton-^ 2

347. Tachinery and Allied Products — 9

354. Snail Arns, etc. 3

353. l.en's !7ec];near 2

355. Sand Liae 2

367. ;;etpl Treati-.g 2

37C. peanut Butter 3

3C6. Unbrella, Prajpe 4

393. Soft Fibre 2

337. Spray Painting Eqixipvient 2

399. liousehold Goods Stora.'ve : 3

410. pLetail Rabbor Tire 3

414. Bobbin and Spool 2

416. leatlier Cloth Fabrics 2

421. Larble Quarrying 2

423. Drop Forging 2

445. Barring 5

451. CandlBT/ick Bedspread 2

454. Optical Retail-- 2

4-58. Uholesele Confecticners- 4

450. Preserve, Maraschino Cherry ■---'■ • 2

452. Uliolesale Tobacco ' 3

453. Candy Ilanuf.act-aring 4

465. Hetail Tobacco ■■ 3

467. Cigar ]';amiio.ctiJiring 2

471. Trailer hrn-of acturing 2

474. ITeedleuork - Puerto Rico 2

9844

COSES KAVIlTCr il ORE TH AI : OITZ STA T (CO'.TTrTr.TZD) ITO .0 7 STAYS

478. Secondary Steel 2

480. Structural Steel 3

485. Cotton GinniHf^ llacliineri'' 2

490. Imported Date Paching 3

508. TJliolesale Pluialjing, etc. 2

509 . i.iarine Equipment 2

84
88
105
201
275
347

CODES SUPPLEtSIITAj^Y TO B AS IC G0DZ5

Fabricated Hetal Products 44

B^^sines^. Furniture, etc. 2

Autonotive Parts and Equipment 3

Vfliolesale and DistriTDutinf,; '■ 5

Chemical liamife-cturing 3

Hacliinerj and Allied Products 33

EETROACTIVE STAYS

IJo examples of retroactive sto,7'.5 '-'ere found.

COiroiTIOIJAIi STAYS

A fevf stays \7ere found to 'jhich vere a,ttached conditions imposed
upon the persons seeking the relief in the stay. Stays of laoor pro-
visions often conta.inod a condition as to the payment of an overtime
rate foi- hours ^'or':ed in excess of the maximum hoijir5.(*) Sta';''s of
trade practice provisions in some cases contained conditions. (**)
The ahove examples of conditional stays v/ere ones issued after the
time of the approval of tha code. In some cases a stay in an order of
approval of a code contr.ined a condition lay -'hich certain parties
afforded the relief of the staj/" woijld he required to do something r;ith
respecy to the continuajice or termination thereof. (***) The author of
this preliminary report has considered the suoject of conditional
exemptions. (****)

( *) See Order 151-25, in 'hich a stay from the provisions of a

code requiring payment of time aaid one-half for overtime 'iras
granted on condition that a,n overtime ra,te of time and one-
third 'be paid. In this order a fiu"ther condition was im-
posed - that the industry --orh its employees the first five
(5) dr.ys of the week. See a-lso Order 457-2. ITRA Piles.

(**) See Order 50-105, st£\y of loss limitation provisions on con-
dition that no sales he made to memhers of the industry at less
than six per cent {&p) ahove cost. (1I3A Piles)

{***) See Order 41 - Order 347-15. IIEIA Piles.

(****) See Preliminary Report on E:;emptions pjid Sxcentions. ICIA

Organization Studies Section, Division of :^.evie-.7, IIRA Piles -
Chapter IV, Page 40. The legal phases of exemptions ha.ve heen
discussed therein and since it is the opinion of the author that
a stay and an exemption are to all practical extents the same,
it is suggested that reference he ma,de to the treatment of
conditional exem'otions hereinhefore mentioned.

9844

-43-

^JiLAi _OF_S TAYS

The records of the oruoro of ar>r^°'V3.1n of coden and amendments
dif.cloGe no denials of stays as the"- all referred to grants of sta^s
or else vrere silent on tlie su'bject. The author has had no opportunity
to exojnir.e the records of the various coc'es in v/aich applications for
stays or considerations hy IIRA of protests, had caused conteiirplation
of a stay, which stay did not materialize at the tine of the order of
approval of the code. In addition, there has heen no opprrt''ar.ity to
ex?imine the records of various codes with respect to applications for
Etrys received Idj . in accordance \.'itli the rule and ref;ulation set
forth in Sxecutivf O^der Ho. G2C5-B, suit a , ho\:evcr, exrjnination of
the records of stays is;3ued after op^'roval of a code shows that one
stay W3.S denied. (*)

FERICP or STAY

Administrative disr-.rotiou with respect to the .^rajit of stays
includes deterrninafion o.s to duration thereof, ^f. necessity, ajid
properly so, this phase of discretion is m-oosed in the administrative
a-jency. The URA e:rercised thl:; rig.it hy <=::-a.ntir\5 stays for various
poriods of time, rrn'^^in- froi.; one day to an unlimited period, in some
occasions, it heca^e necessjr-'- to e-:ten5. the period of sta'y and in some -
cases r'hen the need of •, st-\ was no longer evident, either uroon
ap';dica.tion hy particular interested parties or iriitia.tion h-/ MA, the
duration of the stcj was terminated. (*=•=)

The followin,-; tabulation discloses t'le periods of tij.ie for vrhich
strys v/ere -ranted;

PERIO D OF STA Y IIP. OF ST AYS

To June 16, 1935 8

One year 1

Sir racntlis to one year 8

ninety days to sir: nontlis : 20

Sixtj*- to ninety days 26

Thirty to sixty days ?0

Fifteen to thirt " days V3

Ten to fifteen days 120

Two to ten days 14.-

One day '1

Pendina- study-. IV

Pending fva-the>r order ■ 220

■ Pending amendiaent or hea,ring 13

Pending su^brnission of evidenc:"^ hy industry or trade 16

Pending election of code authority 2

(*) See Order No. 88-18 IJPA Piles hy whicn the Steal Shelving Division
of the Business Furniture, Storage Equiphient and Piling Supply
Code v.'r.s denied a stay of the trade practice provisions relating
1 mar he t ing .

(**) See Order ITo . 4-15-13, Pr,l:in- CoTe - E-tension of r stay; also

Ordprs llos. 467-33, 467-40,467-46, 457-48; see Adj-iinistrative Order
X-B, teruination of stay. NHA Piles.

9844

-44-

A nxuTitc-r of or'lero of ztrrj- do. not disclcne the purticulpr period
for v'hich the nt-,' v/ar, -ranted. In .'.dditi^'n, r.orue orders of ctr.ys re-
lated to severr.l provisions of tho code - one provision vrould "be stryed
for a period of sixty (60) da^'s ,?jid a.notli3r provir.ion stayed for a
period of thirty (30) days - s,ltlioii,.-]i one or er is involved, the various
periods cf time l%ave "been included in the r.'bove tatiilation.

As stated alcove, due process requircnonts '/cro met nith jm order
of stay v/hich v/as laiov;n as a "notice of opportunity to' c'bject ." The
majority of such staj's involvin<'^ due process requirements were either
for a period of ten (10) days or fifteen (15) days. A great number of
stays v/hich nere issued "-oendin ■ further order" v.'ere the result of (l)
show cause order (somewhat in the nature of p. "notice of op jortuiit]''
to oe hoard" and involving due process requirements) (2) Office Order
ilo . 63, su'ora , which referred to the comoD.etion of a study of open
pricu filing systeis.

Other orders of stay varied as to dui'ation. T'e stays for long-er
periods of tine were for t.e urooses of study of -oarticailar industrial
evils which were a.ttempted to V.e removed through the vehicle of code
provisions which ITEA was hesitant to ap'orove . The shorter periods of
stays were to meet temporary situations e::istinv^: in industries; e.g.,
necessities of overtime for inventory taking - tine lost through
holidays and other emergency requirements.

CILAPT5H VI

EYALU ATIOrS AITD C O yCLUSIONS

The purjioses of a stay pre similar to those of an exemption (*).
Its use and exercise depend upon legislative grajit. zjid. administrative
1e,w dictates that the exercise of this power should "be fair and reason-
able. No mention of the term "stay" or any power thereof is found in
the Act. Any such power is "basec purely upon a construction of the Act,
the wording of-^v:hich is sufficient for an implication of a •':rant of
power. In view of this lacl: of specific mention of the term and state-
ment of power, it is s-aggested that contempla.ted legislation, if any,
make special reference to the povrer of stay and that full and adequate
provision be made whereby the agency charged with the a.dministration of
the Act be permitted to exercise this pov/er at any or all times, either
generally or specifically.

It is the a^uthor's opinion that the sa,fest r:liajace upon the basis
of power to grant a stay is found in Section l'^(b) supra . The chronicle
of the delega.tion of power to gi'ant stays as set forth in Chapter II,
supra , discloses that genera^l power had been conferred trprn the Adminis-
trator but tha.t the powers conferred bj"- Section 10, were expressly re-
served to the president. It is time that specific mention of power to

(*) See Preliminary Report on Exemptions and Exceptions, NRA. Or-

gajiization Studies Section, Division of Review - Chapter V, page
48, IIRA Files.

9344

grant r,tayc is found in Executive' Ordor 350 j-B, "but t.j.is delegation
is limitcJ. to certain a-.plications received from specified individuals
witliin a definite period of time. On Eccembor 20, 1933, Frccidcntial
delegation of power referred to " er.e.n-itions and eliiniiiationsO , but still
no power of stay was mentioned. _ It may bo argued that tiio powers of
stay were so si-iiilar to tliose of elimination and exemption that there
was no need of specific mention. It issabraittcd that the actual exer-
cise of the power of stay should be based UDon delegations specifically
uentioning the power a;ad that, in view of the fact that a stay relates
to an entire industry or a rococnized subdivision thereof, cither
•f^eO;^raphical or industrial, the delegations shovld be limited to the
Adininistrator or Administrative Board, with a possible delegation, if
necessary, to an officer authorized to handle grants or denials of
stain's and exemptions (*).

Chapter III hereof sets forth tie various attempts to define the term
"stay". No legislative definition loft a charted course for ;JPJL in this
respect. Various definitions of t-^c power differed from its actual use,
7ne line of demarcation -v/^s arbitrary and many times it -Tas disrein;arded.
Interchangeable use of such tcri'As as "exemption" ," stay" and" exception"
caused adininistr tive co. fusioa. The term "elimination" likewise finds
no legislative guide. LTo li.itations were imposed- as to when a "stay"
or aji climiation" should be invoked, ^ords as such are mere vehicles
but when used adi'ninistrptivcly, subst?j.ico and procedure demand defini-
tions and clarity. It is therefore su.ggcsted that legislative defini-
tions of the terms " st?y'' and "elimination" should h'-ve been made.

A suggested definition of the term "stay" is - adiiinistrativc action
whereby an individual, group of individuals, either geographical or in-
dustrieJ., or an entire industry is relieved from the operation
of the provisions of a code, in whole or in part, by the order of
approval of the code. (**)

ho suggested definition of the term " oli;;-iination"is made. Its use
depends upon the policy of and approa,ch to code-malting. Approval of a
code ca^ be witldield until all objectionable fea,tares taererf are de-
leted, thereby -el imina,ting need of this form of aduinistrativc action.

(*) See Preliminary Report on Exemptions and Exceptions, IIRA Organization
Studies Section, Division of Review - Oha:ptcr V, Page 53.

(**) See Proliaiinary Report on Exemptions and Exceptions, IWA Organization
Studies Section, Division of Eeviev; - Chapter V, Page 52

9844

-46-

If the oppocite procedure- is adopted, a full lerislative definition
of the term shouli' be snt forth.

The grant or denial of a stay involve e the exercise of administra-
tive discretion subject to certain lirnitatjont; set forth in the law.
Limitations imposed "by Coaeress in the Act were in effect "to effectu-
ate the policies of the Act", whicn ijolicies were set forth in Section 1
thereof. It is admitted tiiat tnese limitations T^prnitted an ambit of
wide administrative action. The necessities of fair=^«" reasonable use
of the ;oower of, stay within administrative discretion are apparent and
some criteria therefor should be set forth. The criteria should take
the form of standards set forth legislatively whereby power could be in-
voked upon proof and finding that the particular situation is one "'hich
comes within the limits of tne standards. It is- sugsestec that ^^he
creation of these standards be based upon the experiences of N"RA in its
use of this power. Thp sources of tnese experiences could be found, in
the various reasons why codes or code provisions were staj'^ed. Some
treatment thereof is set forth in Chapter \ of this report.

This report has been concerned with stays and has limited itself to
those which affected entire industries or. a recognized subdivision there-
of. All tjrpes of stays were found as a res^ult of the investigation -
some aoplying to entire industries; other aonlying to separate individ-
uals. In actual administrative practice, tne term "stay" was synonymous
witn that of "exemption". The files and records "^rere treated in the
same manner and the author finds that the problems of and reasons for
the use thereof were alike.

The use of conditional stays often amerir^ed code -r^rovisions. The
practice of attaching conoitions to orders of stay or exemption may re-
sult in invalidity of the condition, deoending uoon its relation to
the purooses of the Act and the exemotion (*").

(*) See Part Three hereof, Chapter IV.

5844

47-

Part .Hvo
Apoendix No. 1

i??{En EZbi.\;.c-: - 'j^'^ivib:.'-^ ? . -S .s op ."is study

Ttiis reiDort has been ^ri-Tfiarily concerned with infomation vmich
would bo on benefit to le^gislative com.iit tees or confereacvs. A cony
of thtj outline (*) sug-sests ^. more detailed review of the suoject. A
nuaijfr of t-ections of such outline hrve not oeen considered in this
re-Qort. Questions of -procedure, admiuistr- tive details, routing of
applications, considerations had by various Advisory Boards and the
metuod of final administrativo dotermma&ion arc not considered herein.
The analysis of the ty-ocs of code provisions subjected to stays dis-
closns that this adminir.trutive power was utilized to meet due -oroccss
requirements. The form of such a stay, ivs effectiveness as a form of
notice to interested parties and also the question whether or not its
use met with the le^jal requirements of due process are all subjects
which are im-oort.-;iiit to a rounr^ed and complete re-^ort of thr- subject.

Tiie advisability of the use of "elimination" as an administrative
weanon in the orocess of code-nakiag is dependent uoon tae questions
of -orocedure .and policy relating to the snonscring and requirements of
code aTorovals, therefore, the so-ondness of administrative nolicy as to
the use of " iliminaoion" is a subject worthy of consideration.

The use of the power of stay for substantive reasons oftnn was
without notice to ind-uscry, labor or other interested groups. The
questions as to vfhether or not the intended use of the power cf stay
should ue nade the subject of prior notice and, .if neccssarj?- subjected
to ouolic nearin^^; ,also consi ierations of due process have not been
touciicd in this report.

Administrative use of tao 3t:;y was evidenced in a,pprovals of a
number of code administration matters; e.^., code authority by-laws,
trade -oractice complaint .pla_is , budgets and other matters. ViTnat NRA
did v;itn respect to these phases of its activities insofar as tne
subj'^-ct of stay in conctrue.d is not covered, oy this report.

A complete analysis of tne types of code provisi-ins subjected to
stays and the reasons for such stays saould benefit tue study. It is
true that this phase of the subject is covered in this report in a
preliminary form. There could be furtaer developmLont of this section
f the s tudy .

The axLthor nas not been ■t.ble to .o:^.lo-re the records of those
situations which resulted in the denial of stays and tue reasons for
such denials 'would be a contribution to tne further study of the subject.

(*) Appendix lo, 2

9S44

-43-'

STAYS
(Outline)

1. Introduction.

1.1 Objective and scrope of study.

2. Bases in the Act.
2.1 Section 3 (a) .

2.2' Application of Sec. 3(a) to Sec. 4, Sec. 7(b), and Sec. 7(c).

2.3 Sec. 6(e) pad 6(b).

2.4 Sec. 10(a) and Sec. 10(b).

2.5 Limitations, if any, u-oon the President.

2.6 Heasonable iraolj-catio.is.

3. Definition.

3.1 Ordinary definition.

3.2 Legal definition.

3.3 Administrative definition - cnanges thereof.

3.4 Discussion of relation to terms "oxomption" and "exception".

4. Delegation of power to grant stays.

4.1 Necessity of delegation and extent tnereof.
4.11 To the Administrator.

4.111 P.H.A.

4.112 Oodes.

4.113 J'orm of delegation

4.114 Limitations on dele;.rc..tion.

4.2 Retentions of power by President.

4.3 Transfer of pov-er to IJ . I.v.a.:3 .

4.31 Rules and reg-olations of X.I.R.B. re£-arding executive
grants or refusals of stays.

9844

-49- Part Two

Apoendix No. 2.

4.311 Form of approval.

4.312 Formalities of issuance.

4.313 Ciianges.

4.4 Additional delegations of, liraitaticns or conditions on
power granted to i\I.I.;.i.B.

Note: For purposes of study of subsequent delegations of pciver to
lesser "boards and of-ficdrs tne Administratdr and l.I.H.B,
will be considered together.

4.5 Delegations to lesser "boards and officials.

4.51 Necessity

4.52 Early phases of N.R.A. adrainistrati on.

4.53 Delegation to Division Administrator permitting
temporary and energency stays.

4.54 Limitations upon delegation.

4.55 Delegation to territorial administrators.
4.55 Legal aspects of such delegations.

4.6 Delegation of power for purposes of appeal.
4.61 Industrial Appeals Board.

5. Itmds of stays.

5.1 General - stay of all provisions of a Code.

5.2 Partial - stay of some provisions of a Code.'

5.3 Grovip - stay of all or some provisions of a Code,
affecting a group,

5.4 Typical cases.

6. Time of issuance of order of stay.

6.1 Approval of Code.

6.2 After approval of Code.

6.3 Ap.'^roval of amendment.

6.4 After approval of amendment,

6.5 Aporoval of Code administration matters.

6.6 After approval of Code administration matters.
9844

50-

Part T^TO
Appendix "Jo. 2.

7. General causes of sta^s of codes or amendments.

7.1 At time of Code ap iroval or Code amendment.

7.11 Legality.

7.12 Legislative clariy and draftsmanship.

7.13 ?or purposes of study.

7.14 Gonilict \/ith other Codes.

7.141 ApJi'oved Codes.

7.142 Codes pending approval.

7.15 Enforcement of policy.

7.16 i\ecognition of protests.

7.17 Coordination or conflict v/ith other governmental
agencies.

7.171 Federal.

7.172 State or municipal.

7.18 Sec. 5 and Sac. 6(a).

7.19 True representation.

7.11 Dif "^riculties of administration, compliance and
enforcement.

7.12 j.iefusal of industry to accept adininistrative cnanges.

7.13 Otaer causes.

7.2 After time of Code approval or Code amendment.

7.21 Legality.

7.22 Cnanges in policy.

7.23 Dif-Ticulties of administration, compliance and
enforcement.

7.24 iion-cooperation 'of industry.

7.25 Geographical problems.

984-i

-51-

Part Two
Appendix No. 2.

7. 25 iiultiple code coverage.

7.27 Increase of exemptions.

7.28 foreign competition.

7.29 Pending amendment.
7.21 Otner causes.

8. Types of code provisions subjected to stays.

8.1 Code definitions.

8.11 Industry or subdivisions thereof.

8.12 Members of industry and classifications tnereof.

8.13 Distribution agencies.

8.14 Commodities.

8.15 Analysis of bases of applications and industries affected.

8.2 Labor provisions.

8.21 Maximiom hours.

8.211 IJorraal week period.

8.212 Normal day period.

8.213 Overtime tolerances.

8.214 Peak: period.

8.22 i/IinimujB wages.

8.221 Normal rate..

8.2211 Hourly rate.

8.2212 Piece rate.

8.2213 TTeekly rate. •

8.222 Overtime rate.

8.223 Apprentice rate.

8.224 Skilled rate.

9844

-52-

Part T^vo
Appendix No. 2.

8.225 Union contract rate."

8.23 Ciiild lator.

8.24 Apprentice li'nitations.

6.25 Handicapped \¥orkers.

8.26 Standards of safety and health.

8.27 Home work.

8.28 Stretcn-oiit.

8.29 Scrip payments.

8.21 Equitable readjustment of \/a5es atove the minimum.

8.22 Posting.

8.23 Collective "bargaining.

8.24 i.iiscellaneous.

8.25 Bases of applications for stays of labor provisions.

3.2^ Analysis of industries which v;ere subject to stays of
labor provisions

8.22 Development of labor policy vdth respect to stays.

8.28 Legiil aspects of labor provision stays.

8.29_ Evaluation of ezqperie.ices.

i.3 Trade practice provisions.

8.31 General analysis aid discussion Of trade practice

provisions with respect to stays thereof, the provisions
being grouped as follo'.vs:

8.311 Generally accepted in law.

8.312 Desirable but not fully accepted in law,

6.313 Desirable but no basis in law.

6.314 Undesirable.

8.315 Unenforceable.

9844

-53-

Part Two
Appendix Ho. 2.

8.32 Code Authority rtiles and regulations having force and
eiiect of trade practice . rules.

8.33 Price policy.

f .-■. 8.331 Price fixing.

8.3311 Pixed prices.

8.3312 Lowest reasonable price.

8.3313 Llodal mark-up.

8.332 Price control.

8.3321 Loss leaders.

8.3322 Loss limitations.

8.333 Open price systems.

8.3331 Institution of system.

3.3332 Particular cantracts.

8.3333 Method of operation.

Note; For purposes of discussion bid depository systems are included
under tnis sub-division.

8.334 Cost provisions: -

8.3341 Sales below cost.

8.3342 Obsolete goods.

8.3343 Emergency disposals.

8.3344 Competition.

8.335 Accounting systems.

8.3351 necessity of approval of Administrator.

8.3352 Complexity of system.

8.3353 Difficulties of installation.

8.336 Sales reporting systems.

9844

-.j4-

Part 'Two
appendix i\Io. 2.

9. 3ode Authority provisions.

9.1 Rifrhts of God.? Authority.

9.2 Obligations and duties of Code Authority.

9.21 Optional.

9.22 Mandatory. : . .

9.3 Use of stay to enforce. ' '

9.31 Representative elections.

9.32 Prevention of undue association participation.

9.33 Legality. •

9.34 Policy.

10. Code Authority finances.

11. Latels •■

11.1 Bases of applications.

11.2 Use of stay 'for

11.21 Control.

11.22 Yifithdrawal.

11.23 Policy.

11.3 Effect of stays granted.

12. Statistical reports.

12.1 Executive orders of gencr,?.l application.

12.2 Bases of ap Jlications.

13. Conditional orders of arjproval.

13.1 Nature of sta^r graxited.

13.2 Effect upon conditional orders.

13.3 Effect upon policy sTid general code structure.

14. Miscellaneous code provisions subjected to stays,

15. Government contracts.
9844

Part r.vo
Appendix No. 2.

15.1 Executive Orders 53.i7 and 6645.

15.2 Stays of codes provisions caused "by Government contracts.

15.3 Nature and effect of stays for government contract purposes.

16. Period of stay,

16.1 Duration of Act.

16.2 Duration of code,

16.3 Temporary.

16.4 Emergency.

17. Types of orders, etc., other than code provisions vmich were
subjected to stays.

17.1 Executive orders,

17.2 Administrative orders.

17.3 G-eneral rules and regulations.

18. Procedure.

18.1 Source of application.

18.11 Industry.

18.12 Labor.

18.13 Governmental ageacies otiier than N.R.A.

18.14 Consujners.

18.15 Otners.

18.2 Application directed to

18.21 Washington.

16.22 Field offices.

18.23 Code Authority.

18.24 Other governmental agencies.

9844

Part Tv7o
Appendix No. 3.

18.3 Consideration by N.H.A« of application.

18.31 Interoffice.

18.32 Extra-office.

18.33 Due process.

18.4 Final action on application.

18.41 Form.

18.42 notice.

19. Stays instituted ty IT.R.A.

19.1 Bases of action.

19.11 Policy.

19.12 Legality.

19.13 pi'otests.

19.131 Industry.

19.132 Labor.

19.133 Consujiier.

19.14 IlecOfl;nition of recomiuendations of advisory boards.

19.2 Analysis of industries and provisions stayed by N.R.A. on,
its o\m motion.

19.3 Effect of stays instituted by lT.il. A.

19.31 Iidustry.

19.32 Labor.

19.33 Consuiers.

20. Power of subsequent modification or termination.

20.1 N.K.A. initiation.

20.2 Application by industry.

9844

-57-

Part Two

Ap Jendix ilo. 2.

20.3 Application ^by labor.

20.4 Application by consiojuers.

20.5 Application by Code Authorities.

20.6 3ases of application.

20.7 Effects. of modification or termination.

21. Evaluations.

22. Conclusions.

23. Bibliography.

9B44

Part Two
Appendix No. 3

LIST OF CODES V.'H iCH ?ERE SUBJICTIS TO A STAY OF
SOIaE OR ALL 3F THE TfiADS PRAGTI CE P:;QVISIj1JS
TMExlEOF la riJE OllIiEiS OF APP.^IOVAL 0^ SUCH CODES

CODE, ao . '.U u.iE GE CODS

96 - Buff and polisuing Uneel

124 - ,iOtioa picture .

182 - P.etail Pood Jc Grocery

196 - UholesaLe Pood li Grocery ■ ■ ■•

202 - Carpet & K"ug Manufacturing

204 - plumbing Fixtures

234 - l.'iacaroni

236 - Cooking & Renting

237 - Alloy Casting

239 - porcelain Eruakfast Furniture AsseraTDling

240 - Advertising Display Installation Trade

241 - Ciicwing Gum Manufacturing
243 - Slide Fastener

84-2 - Hand Chain Hoist

84-3 - Chain i.Ianufacturing

64-4 - Electrical Industrial Truck Maiufactioring

245 - CTnx^nted & Solid Fibre Shipping Container

246 - Paper Disc ;.iilk Bottle Cap.

247 - Food Dish & Pulp & Paper Plate

248 - Glazed and Fancy Paper

249 - Tag Industry

250 - Wire, Hod & 'Tube Die

252 - Cylindrical Liquid Light Paper Container

257 * Printing Eqaipraent

259 - Hat Manufacturing

260 - Ornamental Moulding, Carving & Tiirning

261 - Foundry Supply

263 - Machine Knife & Allied Steel Products

268 - Secondary Aluninum

269 - Carbon Black

270 - Wood Heel

272 - Unit Heater and/or Unit Ventilator

274 - Saw ci Steel products

282 - Restaurant

286 - Beauty and Barber Shop

287 - Graphic Arts

289 - Cloth Heel

290 - Photographic Mount

291 - ITood Cased Lead Pencil

293 - Gunuaing Industry

294 - Guniraed Label « Embossed Seal

295 - Taterproof paper

9844

-53-

CODE NO.

Part T'-'O
Appendix 3,
NAMIOF CODE

296 - Fluted Cup, Pan Liner & Lace Paper

300 - Lye ' .

301 - Sar.ple Card

304 - Outdoor Advertising

305 - Fitre Can & Tute

306 - t.'ica

307 - Stay Manufacturing
311 - Ready Mixed Concrete
313 - Steel Wool Industry

315 - Industrial Safety Eauipment

325 - Horseshoe & Allied Products

327 - Machine Applied Staples & Stapling Machine

329 - Upnolstery Spring & Concessions Mfg,

331 - Bulk Drinking Straw, Etc.

333 - Canvas Goods

334 ►• Beverage Dispensing Equip.

341 - Fibre & Metal V?ork Clothing Button

349 - Mayonnaise

356 - Fullers Earth Producing

359 - Preformed Plastic Products

"752 - Photograiohic & Photo Finishing

364 - Clay Drain Tile Manufacturing

365 - Sand Lime Brick

366 - Retail Monument

367 - Metal Treating

369 - ExTDanding & Specialty Paper Products

370 - Open Paper Drink, Cup & Round Nesting Paper Food Container

371 - Sanitary Milk Bottle Closure
84-7 - Tool & Implement

84-8 - Hack Saw Blade Manaf acturing

84-9 - Forged Tool Manufacturing

84-10 - Cutlery, Manicure Iraolement & Papers & Paper Hangers,

Tool Mfg, , etc.

84r-12 - Power & Gang Lav^n Mower

84-11 - Tackle Block Mfg,

377 - Reclaimed Ruhher Manufacturing

378 - Peanut Butter

382 - Transparent Materials Converters

385 - Railroad Special Track Equipment

386 - Umbrella Frame, etc,
388 - Sandstone

391 - Insecticide & Disenfectant

394 - Lightning Rod Mfg.

397 - Spray Painting & Finishing ' .

399 - Household Goods Storage & Moving

403 - Bleached -Shellac Hanof acta.ring

406 - Boatbailding. & Boat Repairing

409 - Flexible Insulation

-•410 - Retail Rubber Tire & Battery Trade

412 - Loose Leaf & Blank Book

9844

-,60-
III.

CODE m ,

414 - Bot"bin & Sno^l

^16 - L°?.ther Cloth & Lacouprpid i??'brir>,s

84-13 - Porcplain Snpmeling Mfg.

84-14 - Non-?prrou3. Hot, 'Tnt^r Tank

84-15 - Wrp.nch Unnufacturing

201- 4 - Beauty &. Bpr'berrEqvii-onpnt ... ' .

84-16 - Sna-D Past<=nftr I'fg,

308- 2 ~ Wholesale Lotster

419 - Soft Lime Rock

420 - OeyX) S'Oin

421 - Marti p Quarrying <?' l^urnisliing
423 - Dro-1 Forging

426 - Pa-oer Makers Felt

432 - STjecialty Acct. Siirroly

436 - Fur Manufacturing

444 - Shoe Pattern LIfg,
84-18 - Scre'-T Machine Products

275- 1 - Agricultural Insecticide & Fungicide

84-19 - Cap ScreiT Mfg.

275- 2 - Carton Dioxide

84-2C - Machine Screw Nut

308- 5 - Blue Crat

84-21 - Bright Wire Goods Mfg.

84-22 - Dra-D^ry & Carpet Hard'-are

84-23 - Machine Screw Mfg.

84-24 - Wood Serein Mfg.

347- 6 - Woodworking Mrichinery

347- 7 - Beates & Jordan & A"' lied Products

201- 8 - Wholesale Dry Goods

84-25 " Steel Package Mfg.

84-26 - Standard Steel Barrel & Drum

347- 8 _ Water I'^eter Mfg.

445 ~ Baking

448 - Optical Wholesale

450 - Dog Pood

455 - Metal Etching

456 — Ice Cream Cone

458 - Wholesale Confectioners

460 - Preserve, Maraschino Cherr?'- & Glace Fruit

462 - Wholesale Tohacco Trade

463 - Candy Man-'jf acturing
84-27 - Galvanized Ware Mfg.

84-28 - Joh Galvanizing Metal Coating

84-29 - Wpshing Machine Parts

84-30 - Milk & Ice Cream Can Mfg.

84-31 - Warm Air Furnace Mfg.

84-32 - Hog Ring & Ringer Mfg,

84-33 - Plexihle Metal Hose & Tuhing

84-34 - Wire Ro-oe & Strand

NA1!E OF CODE

9844

-61-

CODE lyTQ . IV. ■ NA1.CE: 0? CODE

347_ 9 - Di-'iiif^nd Core Drill

347-10 - liech'^nicpO, Lubric-tor

347-11 - ContiTctnrs p-'onp

347-13 - 'Taterpov'or Equi-rment In.l-astry

347-14 - Rolling; Hill Unchinory

84-35 - Cutting Die Mfg.

4- 1 - Refrigeration

347-15 - Pulverizing lla chine ry

201-11 - Eur Whclesalinf &. Distributing

347-16 - Steam Engine Mfg.

347-17 - Rock c^:: Ore Crushing

347-13 - Reduction Machinery

464 - Coca & Chocolate Mfg.

465 - Retail Tobacco

467 - Cigar Manufacturing

469 - Sulphnnated Oil Mfg.

471 - Tmilor Mfg.

472 - Warm Air Register
347-20 - Hoist Builders
347-19 - Hoisting Engine Mfg.
347-21 - Kiln Cooler & Dryer Mfg.

347-22 - Ccnve^'-or & Material Prepf^ration Material

34-35 - Lift Truck c^: Portable Elevator

105- 1 - Automobile Hot "Jater Heater

34-37 - Artistic Lighting Equroraent

105- 2 - ReL-ilacement Axle Shaft

o4-33 - Complete VJire & Iron Pence

347-24 - Roller & Silent Chain

201-12 - School Supplies & Equipment

477 - Public Se fating

479 - Cold Stor-ge Doer Mfg.

4:5 - Cotton Ginning Machinery

4_.9 - Safety Razor & Safety Racor Blade ivifg.

490 - Im-oorted Date Packing

34_40 - Cut Tack, '.Tire Taclc & Small Staple Mfg.

347-25 - Poorer Transmission

347-26 - Caster & Truck Floor Mfg.

347-23 - Water Softener & Elite r

1:4-41 - Open Steel Elooring

347-30 - Multi-lie V-Belt Drive

201-13 - Athletic Goods Mfg.

105- 3 - Leaf Spiring Mfg.

347-31 - Envelope Machine Mfg.

347-32 - Air Filter

347-33 - Gas Poi'ered Industrial Truck

347-34 - Sprocket Chain

34-43 - Vitreous Enameled "Jare

492 - Stereotype Dry Mat

9844

. -62-
CODE m . ' V. HAME OF CODE

201-14 - ■Joolons & Triiai.iin-s DiGtrituting

347-35 - Oil Field Pu:Tping -Engint- Mfg.

38- 2 - Filing Supnly

88- 1 - Fire Resistive S-^fe

347-36 - Refrigerating Machinery

347-37 - Concrete klixer

347-40 - Diesel Engine Mfg.

347-38 - Jac': Mfg. .. ,

347-39 - Railway Appli-ince Mfg.

347-41 - Hydraulic Machinery

507 - Sirrgical Distributors

508 - wliolosale plixntin.:"' Products, Heating Products, etc.
275- 3 - Industrial Alcohol

509 - Marine Equroment Mfg.

511 - Corrugated Rolled Metal Culvert Pipe
84-A:3r>.- 1 Fly Sr.-atter Mfg.

84-48 - Perforating Mfg.

84-52 - Tu"bular Split & Outside Pronged Rivet Mfg.

84-53 - Liouid Fuel Appliance

34-54 - Pile Mfg. " ■

9844

2-14

2-31
£-11

15-61
16-22

18-18

19-14

41-18

43-8

-63-
- I -

LIST GI'' STAYS I33UZD SU33:i;^US;!T TG CGIS
APPRO VjiL " OCIS PHGVI3IGi>r3 mI'J'ECTE'D -

RZiiSGi's t-ii::{Ej'gr

ORDER

HO.

CODB

1-101

Cottrn Textile

lA-5

Cotton Textile

2-3

Shiobtdlding a:

Shij)repniring

Shiiotuildinfi; .'^nd
Sliinretif'irin^

CGDIi: KlOYlolOl^

M?^ chine Hours

Hours (Spt. closing)

Hours (for certain
employees)

Nor rani hours and over-
time tolernncG

Shipbuilding and Normal hours and over-

Shiprer)pirin5 time tolerance

Lace Manufacturing Machine hours (Barmens
Machine)

Men's Clothim
Ho s ie ry

Norm^il hours
Leprnin.? period

Cast Iron Soil Pipe Normal hours
Ma chine ho ur s

■Jail Papei:

Women' s Belt

Lug.^age & Fancy
Leather

Normal week period

Normal wee^-. neriod

Normal "Joek Period

REASON

Limited equi-oraent

Impending strike.

To start produc-
tion,

Additional men
■unsatisfactory
for testing in-
stallations.

Emergencj'- nork.

Discriminate
against small
companies.

Peak demands.

To enable em-
ployees to learn
other skilled op-
erations and
assiire steady;" em-
ployment.

Discriminates
against small
enterprises.

Scarcity of skilled
help and peak de-
mands.

Sc^ircitjrof skilled
help and peak de-
mands.

Scarcity of skilled
help and poak de-
mands.

60-5

Retail Drug

Minimum wage outside
salesmen and drug store
delivery boys.

Until Hearing.

9844

"I - (Continued)

LIST 0? STAYS ISSUED SIIBSEQ,UEKT TO C&IIS .
APEROVIL - COIiE PR0VI3ICIIS AFFECTSD -
PiASGl^rS THEREFOR

ORDER MO.

60-6

60-2

60-16

5-16

3-17

3-22

50-20

5-22

25-6

71-58

71-66

88-6

COEl E
Retail Drug

■Retail Drug
Retail Drug

Coot nnd Suit
Wool Textile

Wool Textile

CODE P F.G VISIGK
normal D^y period.

All provisions

REASON

;'ore th?5n one hour
lunch period.

Relief for smnll
enterprises in
tOTOis of 2500 or
less.

Consecutive hcurs for Inventory,
specially skilled em-
ployees.

- II -

1 member of Code Autho-Pending araend-
rity selected from nent.

Infants nnd Goats Assn.

Rules of Practice
(Moisture Basis)

Rules of Practice
(for piece goods)

Autom^ic Sprinkler Unfair methods of
competition.

Disclose inforna-
ticn to competitors
and no useful ^ixr-
pose.

Ex^jort sales.

Pending amendment.
Difficulty of
enforcement.

Coat and Suit

Semi-Automatic
Sprinicler

Paint, Varnish,
and Lacquer

Faint, Varnish,
and Lacquer

Q,uotations or sales on Demor?'lized con-
invitation to hid. dition of industry.

Method of Assessment Non-represent'^tive
character of Code
Authority

tianufacture and sale Code conflict,
of shellac and vrnish
belov; cost.

Sgles helov^ cost.

Processing sche-
dules not extended.

Business Pumiture, Prohioitin.-- price guar-Relief to U. S,
Storage Equipment , etc. antee anc" sale belo'; Government
published -or ice.

9844

-65-

ORDER

m. COSE

SS-7 Business Ii\Lrr-iture,

Storage Zq.a'ii);'ie;_A ,
etc.

gS-lo Business Furniture,
Storage .Eciuipv.eat,
etc.

S2-25 Business i\irniture,
Storage Eqt!S.p.ijT3-nt;,
etc.

I5I-5 Millinery

I5I-7 Millinery

151-16 Millinery

151-12 Millinery

151-25 M illiner;/

151-30 Millinery

151-71 Millinerjr

363-11 Men's Kechtrepj:

CODE

IICVI3I0H

RSASOII

Quantity discountn Relief to U.S. G-overn-

ment

U67-2 Cigar Mfg.

467-7 Cigar Mfg.

U67-27 Cig-^r Mfg.

U67-33 Cigar Mfg.

Marketing Provisionc

Snles below putlisl'
ad prices to U. S.
Government.

Area Rates

Days per week as ap-
plied to shipping
crews .

Days per week as ap-
plied to shipping
crews.

Time and one-half
paji'incnt

Daily hours and
overtime pay

Hours

F.O.3. deliveries

Hours, Merchandising
Plan, Wages.

Wage exemption for
slow v/orkers

Overtine payment

Wages

Impractical to deter—'
uinc v;hether prices
conform to code.

Relief to U.S. Govern-
ment.

?ile Incomplete.

Unfair Competitive
condition.

pending amendment

Jile incomplete

Unfair ajid disar-
vantageous.

ll^lze up time lost
Christmas 3ay.

None given.

Pr^ virion creates
conftision and in-
equalties

Continuation of stay
in Executive Order of
Approval

Operating at a loss

Work on Armistice Day.

Unr-lDle to pay code wages
a,nd remain in business

ggUU

-66-

OHDER
NO.

CODE

I1.67-U5 -Cigar Mfg.
6C^5 Retail Drag

60-105 Retail Drag

CODE

FRO VI SIQI I

Over time

Minim-ora vtages for
drag store delivei
employees.

Loss limitations

REASON

Lincoln' s Birthday

None given

Confusion in ap-
plication of prov-
ision.

ggUU

-67-

PAHT THR3E
3}L0.ffTIOlIS AND EXCEPTIOITS

D. L. Boland

9844

-e?

niTEODUCTIOU

The purposes of this study are to disclose the question, problems,
limitations and deficiencies relating to exemption and exceptions which
were presented to or imposed upon the National Recovery Administration
in its capacity as a governmental agency cnarged with the formulation,
promulgation and administration of codes of fair competition under the
terms of the National Industrial Recovery Act. (*) The report endeavors
to treat certain phases of the above matters, v/hich, in the opinion of
the author of the report, are of primary importance. These phases are
concerned with the National Industrial Recovery Act and the bases of
power therein contained with respect to the subject of exemptions and
exceptions; the delegation of such power; the necessity of such delegation
and a recapitulation of the exercise of such pov/ers, both administrative
and delegative.

The report attempts to present an explanation and analysis of the
various kinds of exemptions and exceptions. The extent of the analysis
covers the causes of the application or applications or initiations
thereof, the considerations had thereon by the National Recovery Adminis-
tration and the nature of its decision.

The bases ox the findings set forth in this report result from an
investigation of the files and records of the Ilational Recovery Adminis-
tration and its official orders which relate to exemptions and exceptions.
Lack of time and personnel prevented an investigation of all the records
of the administration relating to this subject, so for purposes of this
preliminary report a selected list of codes was drawn up, such list
being made upon the basis that an exrjnination thereof would disclose in
the msan a cross-section of American industry and also a fairly represents
tive and reasonable picture of the problems and questions presented to
the Administration in connection with the subject of exemptions and ex-
ceptions. The list of codes is as follows:

LIST OF CODES EXAMINED.

Cotton Textile

Shipbuilding and Shiprepairing

Wool Textile

Electrical Manufacturing

Coat and Suit

Lace Manufacturing

Corset and Brassiere

Legitimate Full Length Dramatic and Musical Theatrical

Ltimber and Timber Products

Iron and Steel

Photographic Manufacturing

Pishing Tackle

Rayon and Synthetic Yarn Producing: __^

(*) 48 Stats. 195
9844

-6D-
LIS' J OF-CLDi:S HS-MIUZD ( Cont inued)

Men's Clothing

Hosiery

AutomolDile Mjinufact-uriri:^

Cast Iron Soil Pipe

YiFall Paper I'anufacturing

Salt Producing

Leather

Motion Picttire Laboratory

Underwear and Allied Products Manufacturing

Bituminous Coal

Oil Burner

Gasoline Pump Mpnufacturing

Textile Bag

Transit

Artificial Flower and Poather

Linoleum and Pelt Base Iwsnuf actuxing

Lime,

Blnitting, Braiding and \7ire Covering Machine,

3etail Lumber, Lumber Frod.ucts, Building Materials and Building

Specialties
Laimdrj'- and Dry Cle;ining Macninery Manufacturing
Textile Machinery Manufacturing
Glass Container
Builders Supplies Trade .
Boiler Manufacturing
Farm Equipment

Electric Storage and Wet Primaxy Battery
Women' s Belt

Luggage and Fancy Leather Goods
Ice

Boot and Shoe Mfinuf acturing
Saddlery Manufacturing
Motor Vehicle Retailing Trade
Bankers
Silk Textile
Optical Manufacturing
Automatic Sprinkler
Umbrella Manufacturing
Mutual Savings Banks
Handkerchief
Throwing
Compressed Air
Heat Exchange

Pump Manufacturing .

Cap and Closure
Marking Devices
Retail Trade

Faint, Varnish and Lacquer Manufacturing
Business Furniture, Storage Equipment and •'^iling Supply
Asphalt Shingle and Roofing Manufactiu'ing

9844

-70-
LIST OF CODES EXAIVillTBD (Continued)

Dress Man-afacturing

Paper and Pulp

Millinery

Can Manufacturers

Wholesaling or Distributing Trade

Schiffli, the Hand Machine Embroidery, and the Embroidery xhjread

and Scallop Cutting
Men's ITeckwear
Aluminum
Cigar Manufacturing

The objectives of this study have been mainly concerned with the
problem of legislation, keeping in mind at all times the content of the
President's letters to the chairmen of certain committees of the Congress
with respect to suggestions for future legislation embodying the prin-
ciples of the NRA. As a result, the a^lthor of the study has concerned
himself with the experiences of the National Rgcovery Administration vdth
exemptions and exceptions as a legislative question, the extent of the
power to grant exemptions and exceptions, the limitations upon such power,
the methods of use and exercise of that power, the methods of the dele-
gation of such power, and constructive suggestions as to the subject in
general. The outline of the study which is attached hereto is much more
comprehensive and includes phases of the study which are not made part
of this preliminary report, some of which are problems of procedure, ad-
ministrative detail, relationships with other governmental agencies,
more critical analyses of the subjects of this report and evaluations of
experiences relative thereto. This preliminary report is rather con-
cerned with the more important and substantive subjects hereinabove
mentioned.

Wo attempt has been made to extend the scope of the study or the
sources of material thereof beyond the actual files ajid records of the
National Recovery Administration. These records do not include those
of code authorities, other governmental agencies, or private individuals.
No conferences have been had with any such agencies or individuals. In
short, it is the intention of this report to present in preliminary form
some answer to the question - What did the National Recovery Administra-
tion do in the exercise of its power to grant or deny exemptions from
and exceptions to code provisions? Again, it is the intention of this
study to present in likewise preliminary form some answer to the question-
What should any future governmental agency embodying the principles of
NEA be empowered to do with respect to exemptions from and exceptions
to code provisions?

9844

-71-

„3 or POV'EH

T]ie National Ind-astrial Recovery Act (*) became la'v on June 16,
1933, Title I of such Act related to industrial recovery, and provided
in general for the set-up of various codes of fair competition.
Section 3(a) of the Act states as follows:

"Upon the application to the Presidsnt by one or more trade
or industrial associations or groups, the President may approve
a fcode or codes of fair coupe tition for the trade or industry
or subdivision thereof, represented by the applicant or
applicants, if the President finds (l) that such associations
or groups impose no inequitp'ble restrictions on admission to
members?iip therein and are truly representative of such trades
or industries or subdivisions thereof, and (2) that such code
or codes are not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to
discriminate a;=.':ainst them, and will tend to effectuate the
policy of this title: Provided, That such code or codes
shall not permit monopolies or monopolistic practices:
Provided further. That where sucn code or codes affect the
services and v/elfare of persons engaged in other steps of
the economic process, nothing in this section shall deprive
such persons of the right to be heard prior to approval by
. the President' of such code or codes. The President may, as
a condition of his approval of any such code, impose such
conditions (including requirements for the malcing of re-
ports and the keeping of accounts) for the protection of
consumers, competitors, employees, and others, and in
furtherance of the public interest, and may provide such
exceptions to and exemptions from the provisions of such
code, as the President in his discretion deems necessary
to effectuate the policy herein declared."

It is to be noted that under the terms of this particular
section the President was delegated certain power to

"* * * impose such coiiditions (including requirements
for the making of reports and the keeping of accounts)
for the protection of consumers, competitors, employees,
and others, and in the furtherance of the public
interest, and may provide such exceptions to and ex-
emptions from the provisions of such code, as the
President in his discretion deems necessary to effec-
tuate the policy herein declared."

(*) Public Resolution "nio . 67, House Resolution Wo. 5755, 73d Congress,
48 Stats. 195

9844

-72-

It is apparent from this particular section that Congressional dele-
gation of power had heen made up to the President to grant exemptions
and exceptions from the provisions of codes approved under the pro-
visions of the said Section 3(a). This sentence gives the President
power to do two things:

(1) To impose certain conditions: and

(2) To provide exceptions and exemptions.

As to the first, it says he "may, as a condition of his approval
of any such code, impose such conditions" .

As to the second, it is said he "may provide such exceptions to
and exemptions from the provisions of such code, etc."

A careful reading of the grant of pov/er reveals that the clause
"as a condition of his approval of any such code" surrounded hy commas,
is interposed "between ''mn7/'''^and "impose", whereas later "may" is again
repeated and placed just hefore "provide" without any such interposition.
It must follow, therefore, that the very language of the act is such
that no time condition is expressed, limiting the power to grant ex-
ceptions and exemptions.

Section 4(a) of the National Industrial Recovery Act provides as
follows:

"The President is authorized to enter into
agreements with, and to approve voluntary agreements
hetween and among, persons engaged in a trade or
industry, labor organization, and trade or industrial
organizations, associations, or groups, relating to
any trade or industry, if in his judgment such agree-
ments will aid in effectuating the policy of this title
with respect to transactions in or affecting interstate
'or foreign commerce, and will be consistent with the
requirements of clause (2) of subsection (a) of section 3
for a code of fair competition."

This section contemplates the creation of voluntary agreements
between the President and various groups, but exercise of the autho-
rity is subsequently conditioned upon the requirement that the agree-
ment is consistent with the provisions of the second clause of
Section 3(a) herein-above set forth. This clause refers to monopolies
and it may be arg-aed that the authority conferred upon the President"
by Section 3(a) to grant exemptions and exceptions from the provisions
of codes applies to Section 4(a) agreem.ents insofar as monopolies and
oppression of small enterprises are concerned.

Section 7(b) of the Act is as follows:

"The President shall, so far as practicable, afford every
opportunity to employers and employees, in any trade or industry
or subdivision thereof with respect to v/hich the conditions
referred to in clauses (l) and (2) of subsection (a) prevail »

9844

r73-

to establish by mutual ngrc^raent, the st;jir4fjLr(is ^3 to the
maximum hours of labor, •lini'rurr. rat'-o 01 .pay, at.A such other
conditions o.f emplQ.vrnont as m.-\,7 be necqssary in sucii. trade
or industry or su'Bdivision thereof to effectuate the policy
of this title, and the stand ardrj est.sblished in such agree--
ments, when approved by the Prsoidont, shall have the same
effect as a code of fair competition, ."■pprov^'d by the
President imder subsection (a) of section 3,"

Section 7(c) of the Act provides:

"Where , no such mutual agreement has been approved by the
President he may investigate the labor practices, policies,
■• . wages, hours of labor, and conditions of employment 'in such
trade or industry or subdivision thereof; and upon the basis
of such investigations, and after such hearings as the
President finds advisable, he is authorized to prescribe a
limited code of fair competition fixing such maximum hours
of labor, minimum rates of pay, and other conditions of
employment in the trade or industry or subdivision thiireof
investigated as he finds to be necessary to effectuate the
policy of this title, which shall have the same effect as
a code of fair competition approved by the President under
subsection (a) of section 3. The President- may differentiate
•according to e:cperience and skill of the employees affected
and according to. .the locality of emplo;j'ment ; but no attempt
shall be made to introduce any classification according' to
the nature of the work involved which might tend to set a
maximum as well as a minimum '-age."

The above two sections contemplate circumstances under which
maximum hours of. labo.r and minimum rates of pay and other conditions
of employment might be made the subject of an agreement between the
President, employers spid employees of any trade or industry or sub-
division thereof or the occasion of the exercise of the povi;er by the
President to prescribe a limited code of fair competition as to
maximum hours of labor, minimum rates of pay and other conditions of
employment. The agreements so • contemplated under the terms of
Sections 7(b) and 7(c) necessarily were to be considered as having
the same effect as a code of fair competition approved under the pro-
visions of Section 3(a). Tlie effect of this declaration carried the
full authority conferred in Section 3(a), which, as hereinabove
mentioned, conferred upon the President the power to grant
"* * * exceptions to * * and exemptions from * * * the provisions
of such codes * *" .

The administration of the Act necessarily required some latitude
of administrative discretion. The provision made therefor was Section
10(a) of the Act, which is:-

9844

-74-

"The President is autiTorized' to prescribe such rules
and regulations as may be necessary to carry out the pur-
poses of this title, and fees for licenses and for filing
codes of fair competition and agreements, and any violation
of any such rule or reflation shall he punishable by fine
of not to exceed $500, or imprisonment for not to exceed
six months, or both."

Section 10(b) provides:-

"The President may from time to time cancel or modify
any order, approval, license, rule or regulation issued
under this title; mid each agreement, code of fair compe-
tition, or license approved, prescribed, or issued under
this title shall contain an express provision to that effect."

The power conferred upon the President by these two sections
permitted discretion in the grant or denial of exemptions or exceptions,
authorized the creation of rules and regulations relating thereto and
the cancellation and modification of any order, rule or regulation.
These sections enlarge upon the power conferred to grant exemptions
and exceptions with the further additional requirement that eacJi code
contain the express provisions of Section 10(b) , which seems to be the
safest to rest the power to grant exemptions and exceptions.

The power conferred upon the President as set forth above is
broad and subject to few limitations. These limitations are expressly
set forth as follows:

In Section 3(a) -

"for the protection of consumers, competitors, employees
and others and in the furtherance of the public interest
* * * as the President in his discretion deems necessary
to effectuate the policy herein declared."

Section 7(b) provides - •

"as may be necessary * * * to effectuate the policy of
this title; * *,"

Section 7(c) provides -

"* * as he finds to be necessary to effectuate the policy
of this title."

Likewise Section 10(a) contains a limitation upon the exercise of
administrative discretion -

"as may be necessary to carry out the purposes of this title".

9844

-7j-

An ex.aminatiijii of S(.ctionl, Title I, oi the National Industrial
Recovery Act discloGes a ler;lslctivc d-icl.-iVntion of the existence of
a great national eraergency and olno various widespread protliims and
conditions in American industry and labor which, through the extent
of their seriousness and effect necesssirily required the exercise of
great administrative discretion on the part of the person charged v/ith
the admini titration of the law. These legislative declarations set
forth the policj'' and purposes of the Act and ns such constitute the
standards to which the President was required to adhere and act as
limitations upon the grant of power hertiin'oefore mentioned.

The legislative history of the NIHA is particularly meager upon
the question of exemptions and exceptions to codes. An examination
of the committee reports in both Houses, the hearings before. those
committees, and the debates in Congress upon the submission of the
Recovfiry Bill itself furnishes only slight support to siny policy of
malcing exemptions to the operation .of codes. Hovrever, such material
as may possibly bo regarded as bearing upon the point is herewith set
forth.

Regarding Section 7(c) of thu Act, Mr. Richberg had this to say
before the Comi'nittee on Wriys and Lieans of the House:

". . .1 ¥/ill just refer you .to the next section on page
8, where the President is authorized, where no mutual
agreement has been approved, to investigate the conditions
piid to 'est, ' lb 11 sh a 'limit'.Kl 'codo 'of . fsiir oainpotition v/hich
fixes maximum hours of- labor, minimum rated ef pay, -and'
other working .conditions; and on page 9 the specific
provision is made that 'the President may differentiate
according to experience and skill of the employees affected
and according to the locality of employment' • And that is
the thought which runs throughout the, billy ..a;S I understand
it." (Page 71, May 18, 1953).

Concerning the spse section of the Act, Senator Wagner had this
to say before a hearing of the same committee:'

"... Where no agreement can be reached or has been
approved, the President is authorized to investigate and
to prescribe by way of a limited code or as a part of a
general code the standards of hours, v-'ages and conditions.

"Of course, in those cases, in his investigation he raust
take into consideration the locality, difference in .the
cost of living in certain localities, and other matters
which enter into a determination of hours and wagQS and
conditions, with which we are all familiar." (-May 19, 1933).

9844

-76-

As finally passed, Section 7(c) of tne Act .--jives definite sanction
to a differentiation -

"accordin,j to experience and skill of the ernploj'-ees affected
and accordine; to the locality of the emplo^^.Tiient ."

Therefore, the raeaninf; of the Act upon this point seyms to have "been
?/ell presented at the foregoing committee hearinf^-.

Concernin/;; Section 4(a) of the Act, SenT.tor War";ner said at the
hearing hefore the Committee on Finance of the United States Senate:

".... In addition to the voluntary code, and the compulsory
code, there is also provision that a portion of an industry
may enter into some agreement that is different from the
codes, bocause the government talces it out of the code for
some specific purpose. For instance, in some locality
conditions exist that do not exist within the trade gene-
rally, and that may require, rather than an exception in
the code, a definite agreement tiotvoen. the Governr.ient and
the individual industry." (Page 3, May' 22, 1935).

This recognition of differentiation hy locality applies only to
the agreement features, and does not hy its terms apply to volxintary
codes and compulsory codes.

The following hrief colloqu;^ hetwoen Senators La Follette and
Wagner at another hearing hefore the s.?jne committee relates to Section
10(Td) of the Act:

Senator La Follette. "Senator Wagner, did you and your associates
consider the advisability of conferring power upon the President
to amend or revoke these codes of fair competition in cases where
it was demonstrable that the public interest was being injured
by their continuance?"

Senator Wagner. "That -is right in the act. He may modify,
cancel, or do anything to the order.

Section 10(b) of the Act seems to be the safest reliance in
justifying exemptions and exceptions to codes. The wording of the
Section is so broad that the President seems clearly to have the
povfer of granting exemptions and exceptions. (*)

Thti report of the House Committee on Ways and Means upon the Re-
covery Bill has little to say which bears upon the subject of exemptions
and exceptions. The follov;ing are the only excei--pts from the report
which are. in point:

(*) It is interesting to note that the Administrator assumed he had
power to grant exemptions - See Office Order, December 7, 1933 -
although the powers conferred by Section 10 had been reversed by
the President (See Executive Order 6205-A) NRA. files.

9844

„ 77 -

". . .If coder,, ar-TGcrnonts, or licenc'.-;: orov..; f;mlty, the power
is reserved to the Presid-.Mt, \:,\d:T iKction 9.(b) , to cancel or
modify any order, a-.Tn-ovrl, license ,. r.ilc or re^julation issued
under this title."

Section 9(b) later liecaine Section 10(b) as finally ennct'id:

"... TOiereas a code of fair coninetition will "bo made for an entire
trade or industry and must be made by those truly representative of
the trade or industry, these voluntary agreements can be entered
into by }iarties in an industry or in more than one industry. The
code binds all persons engaged in a trade or industry, but an a,;;ree~
ment binds only those entering into it. Thus the -orovisions for
codes and agroemant sUpT)lement each other and provide a thoroughly
flexible liiachinery of industrial operation." (pages 3 and 4 of
House Report i^o. 159, supra).

Of course, the last 'of '-'the foregoing excerpts merely explains the
difference betv/een a code and a voluntary a-reernent. If anything is to
be gained from this portion of the report it would seem to be that codes
are presumed to be binding upon all m>^mbers of an industry alike.

In the report of the Senate Coiamittee on ITinance uoon the National
Industrial Hecovery Bill there is nothing which relates to the subject
of exceptions and exemptions. (*)

From the debates in Congress we likewise find little inaterial. The
follov/ing excerpts from the Con,^ressional Record are sub stc-mti ally all
of the material which in relevant:

The Presiding Officer. (l.:,r. lleely in the chair.) "... The next
amendment was., on page 7, line 21i -after the name 'President," to
insert 'shall find that destructive wage or price cutting or other
activities contrary to the policy of this .'title are being practiced
in any geographical area or in any subdivision of any trade or in-
dustry, and . .. .'" (Pag-:; 5355,' Senate, Jixie 3, 1933)

Mr, Black, "iv'r. Pr.osidc-nt, there was aji amendment pending to that
particular amendment. Hint y/as the pending question, as I under-
stood. The amendment was to strike from the amendment the v/ords
'in any geographical area'," (Page 5355, Senate, June 3, 1933)

Mr. George. ". . • If the Senator from I.lississippi is going to
insist uiDon it, I shall move to strike out 'in any geographical
area or' on page 7,' and the same language on page 8 of the bill,"

See footnote on next page.

9844

Mr. Ilcrrisori. "iJin.7 I aay to the Sen.- .tor fi'om Georgia that
I aia not inaistinj p.' rticulcrly oa. ;:iy proposition- in that
regard, 'because this ?:uenduent v. .3 offered in the- comit-
tee, and, of course, I fuel th.-.t I ouf.ht to ctand "by the
action of the coLiinittee; "bat Geriei';„l Jolmson, -when he ap-
peared hefore the coramittee, naid he did not think it was
necessary as to this matter. I o,skecl unanimous consent
for the reconsideration of the vote "by which it was adopts
ed in order to get the matter before the Senate, so that we
could dispose of it."

Mr. G-eorge. "I make that motion, Mr, President, and sug-
gest the absence of a quorum unless it is accepted."

Ivlr. Presiding Officer. "The ahsence of a quorum is sug-
gested. The clerk will call the roll." (Page 5259,
June 8th, 1933.)

After a roll call with 92 members ^uiswering, the foregoing dis-
cussion of licenses under Section 4('b) of the Act was continued. Sec-
tion 4(h) was finally passed without the provision as to geographical
areas.

The following remarks of Mr. Black illustrate the opposition to
the unsuccessful attempt to mal-re the license features have a geograph-
ical aspect:

"... I strenuously ooject to iia.ving any one state marked
off with lines around it, and the statement made to the
public that ttere is an infection in that State in a par-
ticular industry. It seems to me that we should either
have the rules applied to on entire industry or that they
should not apply to it a.t all. I can see nothing fair, when
there might be an investigation of some couplaint made about
one State, saying that v^e will require every person engaged
in the business in that St.-\te, drawing a line arouad it, to
be licensed, but that we will m.-ilve no such requirement of
those engaged in the same industry in jiny other State. . ."
(Page 526', June 8, 1933)

This portion of the legislative history seems of doubtful value to.
us because the license features of the Act were not exercised by the
president, and his power to license expired by the terms of .the Act a
year earlier than the other provisions of the Act.

(*) See Report EFo . 114 of the Senate, 73d Congress, 1st Session.

9844

-79-

An "exenption" in t.e crdinory rneeTiin^; of t'.e wcr'l is "t".-e act
of exem_Dtin,;; or stc.te oi' 'oein^i oxer.ipted; ireedcni frr.m any charge,
burden, evil, etc., te v/l.icl- others f..re subject; inx.iunity; privilege;
* * *M _ (* ^

According to Ulie strict lesgal definition the term "exemotion"
relates "to t'le' right g^ven by lavrt: a debtor tc retain a portion
of -h.s property without its being lirble tc execution at the suit of
a creditor, or t:, a distress for rent." (**)

I^ie ordinary me-^ning of t.e terrn "e::Gepti:n'' is "the act of
excepting or executing; exclusion; restriction by tailing out some-
thing \7.ich ot-ien/ise v/uulu. be included; as in a clo,ss, state.r.ent,
cr rale. -

"T-iat v/hicl. is excepted or trJcen out frou others;
person-, thing, or ca-"e specified as distinct, cr
not included; as, aL.icst every general rule has
its excepti..n." (***)

The legal nerjimg oi t!-e ten.; "excepti-on" 'i-;.s severs.1 applica-
tions, but for tne purp-'ses of t'^is study refers to m exclusion
from the general rulss fnd operations of t-.e la':/. (****)

Tno ITational Recovery Achn:.n '.:-:trati'n from tie "utset recognized
its pov;er to grant exemptions end fexceptions. Paragraph 14 of tie
originaJ Prosiderit's P.eeuployment Agreement (Ij) hulletin iJo. 3,
National Recovery Administration, of tie Presidont' s Reemployment
Program, July 20, 1S33, specifically provided f r petitions for sts,ys
of the particulrr provisions pending a sum;,iF,ry inve^'tiga.ticn by T.BA.
Tlie order of approval of tie first IIRA Code (Cotton Textile) which

(*) Ifebster's 1"g\7 Internc.tional Dictiona.ry :f the English Language,

G. cz C. herrian Co., 195d, at p. 767.

(**) Bouvier' s Lav^ Dictiona;:y, Rarde' s Tliird Revision, Vol. 1,

p. 1153.

(***) ".Vebster's Hev/ International Dictionary of tne English
Language, G. d C. herria.-n Co., lCo4, at 5. 763.

(****) Bcuvier's Law Dictionary, Rav/le' s Tliird Revision, Vol. 1,
■2. 1108.

9844

-80-

contained an exce-pticn as to certain member'^ of t:.s industry frora
tliG "orovisi ^ns re:'uirinjj mach .ne licur lirr.itationG. Tlie use of t'.iir,
ncyVier coiitijiued, Lut no s,d.iiinistrative attenot to define tlie terras "stay"
"exei-iption" rnd "e::ce;^tion" were used .sync r^TTCously and witlicut re-
gard 'to any crderly definition snd statement oi t-'e scope of the
meanings of tlie various terms. Tnis intercl:.ange of t'.e use of tlie
terms neces'-.arily required clarification and on i.fcy 5, 1934,
Hughs. Jo^.mson, Adiiiinistrator for Industrial Keccvery, by Adininis-
ti'ative Order IJo, X-37 , jxefiCribed rules and regulaticns concerning
exceptions tc sjid exemptions from approved codes of fair co:apeti-
tion. Tlie order defined tne term "exemption" r.s follows:

"The term 'exemption' sliral include 'exceptions'
a:id 'stays' and all rulings v/aereby an ir.divi'Iual,
group or class .Is relopsed frjra tne full o";5eration
of a provision of ,". code."

It will be seen from tliis au'ninistrr.tive definition tiat tie term
"exemption" and "exception" rolated t: ;-: releaee from an approved
code and t/i,-.t tlie intention of t"ie Icjnini stration w.",;.; to consider
tjiem in the ss^.ie meaning and sense. This admiiii strati ve definition
continued to be operative until approximately Septef.jer 1, 195<1, when
the Administre,tion issued an Office Manual. Pert III, -)ar. 3510,
of the Office i.ianual , descr_bed tl.e term "exemption" c.s follows:

"Tlie term ' Exemption ' includes any ruling whereby
an individual, group, or class v/ithin an indus-
try is released frora the full operation of a code
prevision. "

Paragra,;3h 3210 further states -

"To preserve -ojiifornity of u~age t.e ter.i 'Sxce.ticns'
will not be used as a synon.y-m for 'Exem ;tions' .

Such Office Manual contains the followin.;; statement:

"Superseding all previous Office Orders and hemoranda,
includin^^ all Administrative Orders ;ind all Executive
Orders v/iti general application of rlPA.. "

and further declares:- ■

"It is the purpose of the Ofr'hce Llanual to:-

"To eliminate r.11 conflicts and
obscurities in existing Office
Orders, Office Lleraorania, and
Administrative Orders."

"Upon completion of the first
edition all previous Office Irders
and iiemcranda will be revoked."

9844

-81-

This Office li,?jauc'l v;.'\s jrdvrc.l by" t'le directicn of the Administra-
tor 31V. t;..e crdoi of \ss\wnco t';\9.ecf v/r.s sijmed by (}. A. Lync, tie
Adraini strt.tive ' f f icsr.

It './ill ba noted from t.-^ cbove t"_i?vt t e Cffice Lianual varies
from t]i.e definition set fortl. in Ac-ininistrative Order X-27. According
to the strtenent of V. e exjlfuirti.-n r,f the Office l;ianual the tenns of
Adrainistrc:,tiv3 Order X-'37 were suv-erseded and a.cccrdingly would "be
affected, but the author of tlio report, durinj the course of his in-
vestijc-.tion , conferred wit;i llr. I.ielvin Sirns, Assxsta.nt Counsel of the
Legal Division of tiie I'PlA,. rej;s.rdin.i; tie definitions of the terms
"exem_jtions" and "explanations" contained in the Office Lianual.
l.;r. Si::is v/as a ue.aber o'l tlie convnittee appointed by the Administrator
to prep;.u-c the Cffice Lipjiual and v/as well acquainted witii the circuin-
str?jLces surroimd the inclusion of Part III, F-.r. 3210. lir. Si.ns ex-
plains the variance in t-at th.o reference to the term "exception"
related onl / tc tie situation cre-.ted by the Presidential use of the
term "exception" in hxecutive Carder 66<l-6 relating to Goverrjiaent con-
tracts sjid that it v/as the mtenticn.of t.ie drcvftcrs of the Office
lianual tc treat t.--.e botn terias as synonomous v;ith t"ae one different
instance mentioned, ho ct.ier official administrative definitions
of the terms have been mads and for tl.'.e purposes of this report the
originrJ intention of the Administration s^irll be follo\.'ed and th.e
terms "exemptions" ?aid "exceptions" shell be used synonomously.

9844

-3ii-

CHAPTX: III

DglgGATION OF POSTE R TO GRAIIT OR p -ZII Y 3X31g TI 0HS AIID BXCHPTIOIIS

Under the terms of Section 2{p.) r.nd 2(13) of the 1' 124-, the President
was authorized to establish such ag^encics, accept the services of and to
utilize Federal officers and enrployeec, prescrihe their authorities, and
to delegate any of his functions and powers u:ider the title of the Act to
such officers, agents, and employees. The particular sections in quest-
ion are as fellows:

" To effectuate the policy of this title, the President is hereby
authorized to establish such agencies, to accept and utilize such
voluntary and tmcorrrpensatod services, to appoint, v/ithout regard
to the provisions of the civil service laws, such officers and
employees, and to utilize such Federal officers and employees,
and, with the consent of the State, such State and local officers
and employees, as he ma.y find necessary, to prescribe their auth-
orities, duties, responsibilities, and tenure, and, without regard
to the Classification Act of 1923, as amended, to fix the compen-
sation of any officers and employees so appointed.

"The President may delegate any of his functions and powers under
this title to such officers, agents, and employees as he may des-
ignate or appoint, and m3.y establish an industrial planning and
research agency to aid in carrying out his functions under this
title."

Pursu3.nt to this authority, the President on June 16, 1933, by
Executive Oi-der No. 6173, appointed Hugh S. Jolmson, as Administrator
for Industrial Recovery under Title I of the Act. Under the terms of
the said order the President further appointed a' special Industrial
Recovery Board to be composed of the Secretary of Commerce as Chair-
man, the Attorney General, the Secretary of the Interior, the Secret-
ary of Agriculture, the Secretary of Labor, the Director of the Sudget,
the Administrator for Industrial Hecoverj^, and the Chairman of the Fed-
eral Trade Conmission. General Jolinson, Administrator for Industrial
Recovery, was granted authority for thirty days subject to the approval
of the special Inc-ustrial Recovery Board, to appoint the necessary
personnel on a temporary basis and to conduct the v/ork authorized
under Title I of the Act. On July 15, 1933, the President, be Execut-
ive Order llo. 6205-A, continued the appointment of Hugh S. Jolmson as
Administrator for Industrial Recovci-y and authorized him, subject to
the general approval of the aforementioned Specia.1 Industrial Recov- .
ery Board, to appoint the necessary personnel on a permanent basis,
and among other things to exercise functions invested in the President
by Title I of the Act, except the apnroval of codes, mr.I:ing of agree-
ments, issuance of licenses, or exercise of power confori-ed in Sect-
/ ions 3(e), 6(c) 8(b\ 9 andlO. The first specific reference to exempt-
ions in the various delegations of power by the President to the Admin-
istrator is found in Executive Order iJo. 6205-B of July 15, 1935, in
which the President granted the Administrator power to stay the prov- ^
isions of a code upon the receipt of an application for an exception
to or an exemption from a code from persons who allege d that the op-
eration of a code would result in undue hardship.

9844

Early i:.i the ac-ministr-tion of Titlu I of tho llo.tional Iriciuo+.i-ial
Rocoveiy Act tho President invokod the -jotqts contr.incd in Section 4(a)
of the Act to institute tho procrain of agi-o racnts Imows as the President's
Reemployment Agreement. This pi-ogram T^as-anno-jncod by Bulletin llo. '6,
issued July 20, 1935, and on September 13, 1933, Bulletin "Jo. 5 of the
National Hccovcry Admini strati on, as approved by the Administrator and
the Chairman of the National Industrial Hccoverj' Board, (apparently a
misnomer for the Special Industrial Recover;/ Board), set forth re£,ulat-
ions and procedure for local NRA Compliance Boards. Those boards were
set up for the iiandling of complaints of non-compliance and petitions
for exceptions from the terms of the PEA and wore coi.posed of members
who volunteered their services in tho particular districts in which they
lived. The boards were empowered under Section 2 of the Bulletin to
receive all petitions for exceptions from the provisions of the PRA
and to grant exceptions in cases of peculiar circ-umstances or groat
and unavoidable Ijardship. Certain exceptions from the delegation of
this power were set forth in Section 2 of the bulletin. It was con-
fined to consideration of individxxal coses of individual Imrdship and
in general these boards were pei-mittcd to .grant exceptions from the
wage and hour provisions of tho PRA. llo specific delej^.tion of power
to grant cxc.jptions to and cxo!TK)tions from the PRA wa.s made by the
President at tho time of the issuance of Bulletin Uo. J, but on IIov-
ember 23, 1933, the President, by IJxecutivc Order Ko. 6443, authorized
the Administrator to grant exceptions to and exein^itions from agreements.
(Referring to the President's Recrdployment Agreement).

Tho loc-3,1 KRA Compliance Boards operated on a voluntary basis and
consisted ms.inly of members of local committees which had been set up
by civic gro"up3 at the time of the institution of the Pl^ campaign.
These boards were created in pra.ctically every city and town in the
United Sta.tes and e xcrcisod the power grant.cd from the time of the
issua.nco of Bulletin lie. 5. ■ . . -

In the meantime, tho Administrator ret-ained the final power to
grant PRA exeirptions. Office Order ITo.. 40., issued by the Administrat-
ion over tho signature of ' AlvinBi-ovm,' Assistant Administrator and
3::ecutive Officer, created a National Conrpliance Board, which Board
was empowered to rocomitiGnd oxcoptions and the Eagle Bra,ncn of the
Compliance Division of the Administration was designated as the bodj"
to grant cxcmi^tidns from the PRA . !Io other specific administrative
delegations of the ^ovTor to gi'ant PRA exemptions and exceptions has
been found in tho records of i'PA.

CODZSamDZR SI:GTI01T 3(a )

Immediately after June IG, 193'-, tho IIRA began the. codification'
of industry and trade and the approval of various codes stibmitted nec-
essarily required exercise of power to grant exemptions therefrom. The
iriginal delegation by the President was of general description, but tho
Administrator acted thereunder until December 30, 1933 , v;hen tho Pres-
ident, by Executive Order Ho. Go43-A delegated to the AcLainistrator the
following functions and pov:ers;

9844

-84-

"(2) The ap-proval of any *** exception or exemption from ***
any one or more provisions of any code of fair competition."

This delegation specifically related to codes and incorporated pow-
er theretofore generally granted. It specifically shows that no limita-
tions were placed upon the Administrator other than those contained in
the Act in the exercise of the power conferred.

A further Presidential delegation of pcier to grant exemptions oc-
curred on March 14, 1934, when the President, in the exercise of the ex-
ecutive and governmental discretion to impose such conditions as may te
necessary in the governmental purchasing activities, set forth in Execu-
tive Order No, 6646 certain requirements with regard to bids submitted to
governmental agencies and at .the same time in paragraph 5 of the order
empowered the Administrator for Industrial Recovery to mal-:e exceptions
in specific cases and otherwise under the order when in the judgment of
the Administrator justice to the public interest would be best served
thereby.

JOINT A. A. A. MD IT.R.A. CODES

The National Recovery Administration v/as primarily concerned with
the codification of industry for the purposes of industrial recovery.
The Presidential program also included the rehabilitation of agriculture
through the vehicle of the Agricultural Adjustment Administration and in
the terms of the Agricultural Adjustment Act (*), the Secretary of Agri-
culture was appointed as Administrator of the Act,

On June 26, 1933, the President, by Executive Order No. 6182, dele-
gated to the Secretary of Agriculture all of the functions and powere
(other than the determination and administration of provisions relating
to hours of labor, rates of ;oay, and other conditions of employment) as
referred to in Title I of the Act with respect to the industries and trades
engaged partly in the handling of milk and its products, tobacco and its
products, and all foods and foodstuffs. This delegation was subject to 'O
the reservation of power in the President to approve or disapprove pro-
visions of any code. This delegation was re-affirmed in Executive Order
No. 5207 dated July 21, 1933, and on January 8, 1934, the President, by
Executive Order No. 6551, transferred all of the functions and pov^ers
theretofore delegated to the Secretary of Agriculture to the Administra-
tor for National Recovery insofar as these functions and powers related
to certain industries which were set forth in the order and which were
also the subject of subsequent agreement between the Secretary of Agri-
culture and the Administrator for Industrial Recovery. The result of
this Executive Order placed codes co-vering industries and trades which
were closely allied to the regulations of the Agricultural Adjustment
Administration under the power of the Administrator for Industrial Re-
covery who had theretofore been delegated pc'er to grant or deny exemp-
tions and exceptions.

(*) Public Resolution No. 10, 73d Congress.

9844

-85-

- CREA.TI01I or ITATIOiJAL IIDUSTHIAL RaCOVZRY BOARD

In Septemoer 1934, the Jrosident decided uyion. p, chanf^e in the form
of the administerinri' nody of the llrtionr.1 Industrial E.<=cover7 Act.
General Jolinson had resigned ar, Adrainistrntor for Indurstrial Recovery
and on September 27, 1934, tho President, "oy IJxecutive Orden' Up, 6G59,
created the National Industrial Recovery Borrd, consisting of severe
menhers. The order appointed Cl.^ Uillinns, A. D. Uliiteside, Sidney
Hillraan, Leon C. Llrrshall, a.nd ITalton Hamilton as menbers of the Booxd,
and apoointed Blaclavell Snith LegaL Adviser aid Leon Henderson, Economic
Adviser to the Boa.rd. These ti70 advisers served as ex-officio raenhers
of the Board, The five menhers aooointed (other than ex-officio mem-
hers) rrere om^oi.Tered to aduinister, -under the direction of the President,
Title I of the Act, and the Boa.rd i.t-^s authorized to exercise all powers
theretofore conferred hy executive orders uoon the Administrator for
Industrial Recovery. This creation of the Board and transfer of ■oo-'er
from the Administrator to the Board necessarily carried the poner to
grant or deny exen-otions or execDtior.s, theretofore s^ranted to the Ad-
ministrator,

DEL5GATICII 02 ?0T7JR TO L::S5ER OI'fflCIALS

Applications for excGptions and Gxcm-Ttioi.s frou the -orovisions of
the codes increased as the number of r:r)TOve-l codes increased. At the
outset of the Administration, individurl r, .'plications for exemptions
were granted or denied jy presidciitiaJ. orders (*). Later such others v.'ere
signed by General Johnson, but the volume of a r-)licntions so increased
that the delegation of ]jO"7er to lesser officials of tho ITPA became neces-
sary.

On liarch 36, 1934, General JoixnQon, through the vehicle of Office.
Order Ho, 75, set u-j a procedure to be follo-./ed in r-'olings on code a,dmin-
istration problems, P?.rt of this procedure relr.ted to exceiotions and
exemptions and provided that each Division Administrator rras em'sonered to
malre rulings on a^'")plic,ations far exemptions and exce-otions and that the
Division Adininistrator' s decision r,'ould bo final, subject onl"" to the
ultimate disa-xoroval of the Adrainistratpr himself. This -oo-fer of the
Division Adr/iinistrator v/as continued throughout the code administration
period of NRA, (**) IJo further delegations "cre ma.de to officials under
the supervision of Division AdminiGtra-tiors, although Deputy Administrators
were given pov.'er cf recorainendation,

TSimiTOR IAL iLDi.IIITISTIUiTOllS .

During the course of code administration, territorial iDroblems arose
and many applications wer.j received for exenrotions from territorial codes

(*) See Executive Orders llos. 6274-S296 IIRA files.

(**) See Office Orders IIos. 87 and 89, Office MeraDrandvun llo , 248, and
Part III, Section 3225 IffiA Office llrnual - 3235. 1.

9844

-36-

or the application of national codes to the territor-^. These -jroblens 'ej
recognized hj the AdminiGtr-tion (*). Shortly after the issuance of
these orders, the IJEA. established a Territorial Division, '.vhich -t'.s
charged --ith matters rel.-tin;; to the territorial adiainistration of
codes, -particularly in Hn,v?aii and Puerto Rico (**), After considera-
tion as to the problems presented and the most effective method of hpjidl-
ing territorial eicem'itions, the national Industrial Recovery Board dele-
gated to the Deputy Administrator for the Territory of Tiavraii the auth-
ority tn grant exemptions from codes of fair com^^etition a-j'provei excul-
sively for the Territory of Hawaii. (***) This ,delei;,Ttion vas subject
to the conditions of ' the action tloxne bein.;' in accordance •'jith the rules
and re,2:ulati(>ns rnd toIIg;'' of 'the L'rti -lal Industrial Recovery Board
and thrt all action taken by the Deputy Administrr tor for the Territory
of Hawaii be reported to rnd bo subject to revie'- ond disa-ior oval bjr
such Board.

Shortly after the a";ove delej-jation regarding Har/aiian codes the
Deputy Adrainistrator for the Territory of Alaska '-'as ruthorized "to exempt
or refuse to ezeiirat from any provision of any code of fair competition
to the extent that such code p;rnlieG to mj transaction ^uthin the Terri-
tory of Alaska". This authority did not aopl^'' to ezemotions from the
following soecified codes:

Cr.;ming Indus trj'-

Canned Salmon Indus trj''

LtTJiioer and Timber Products Industries

Fisheries Industry/

This authority r.-a.s /-;rp.nted by the national Industrial Recovery Board on
May 3, 1935 {****),' ' '

No official dolegr tion ^-^s made to the Deput"/ Administrr-tor for
Puerto Rico and the Virgin Islands, although the IJa.tional Industrial Re-
covery Board had planned r similar grant of authority a.s had been made
to the De-Quty Administrator for Hawaii.

If I SOELLAIIEOUS DELEGAT I PITS

A further delegation of porter was made with res-oect to the issuance
of exemptions on Aoril 9, 1934, when Genera.l Johnson created the office
of Adininistr.-tive Officer and designated such Officer "to act on all
matters not other-rise assigned \7hich do not require the Administrator's
personal attention, including final approval in the name of the Admin-
istrator of codes arid other documents requiring the AJjninistra.tor's^- action
****". The national Industrial Recovery Board continued this office and

(*) See AdjQinistra,tive Ordor X-GO - Office Order llo. 104 - Kl£ file.

(**) ■ See iCln. Office ileinorajidum of December C9, 1933.

(***) Office Lleraorandum No, 348 - March 19, 1935.

(****) Office Liemorandur.1 No. 356 - NliA files.

9844

-87-

its order conferrin'c th^ authority st^-tcs "to c.-cecutc s.rrj or rll papers,
documents, or other instru'.ients in ■■•ritin;-; required in the performance .
of the functions F',nd pb-u'cra dole;;at!j'. to op.id !3o-Td oy said Executive
Order and othenrise, includin;', Dut vithout linitr.tion, the -lovrer to
issue order's, r.iD")r ovals, rules or rofjulations". (*)

A fei^ laiscelianeouT dele^r.tionr, o:' a.uthority to -^rrnt or deny exemp-
tions were nrde in connoction v.'ith various -ohasos of code a.djninistration.
Executive OrCer No. 664G related to oonr^lir'ncG with codes for piuTDOses of
bidding on &ove:rnment contracts. This ^-jr.s primarily a matter of coravoli-
ance and on Decciher 15, 1934, the Director of Com^Dliance and Enforcenent
was authorized 'by the Administrator to grmit exceptions from the provi-
sions of this Executive Order (**).

The neccBsity of efficient hendlir.f: of o.pplicp.tions for exemptions
motive.ted the authorization of the Chief of the Com-^li,?jice Division to
grant or deny an ap-)licrtion for an exemption which had been referred "by
any of the St.- te Cou-|oliance Directors (***)j when the ordinary procedure
resulting in a decision ty a. Division Administrator ha^d caused undue
delay.

EZGIOilAL OZ^ICSS

No evidence other than the territorial dele^^-ation ha.s "been found
showing BXTf decentralization of the authority to grant or deny exemptions.
The 1-IKA maintained offices in each strte under the direction of a state
director aaid on January 1, 1935, created a regional organization which
divided continentpl United States into eight regions, ca.ch under the dir-
ection of a regional director. It was contenolated thr.t the authority to
grant or deny exeiTDtions vrould oe delegatr-d to theTo itJgional directors,
hut the -olans for this deaentralization of the authority never materializ-
ed (****), In addition, the Code Administrati n Division of HEA was
decentrrli::ed "by the a y ..ointment of regional directors of code adminis-
tration. Offices '--ore authorized in Hew Yorl', Chicr 'O and Saoi ITrancisco,
"but there wrs no delegati n of azxthority rela.ting to exe iptions to these
officials.

cod:: althqritiss

CertPoin codes ay their terms authorized code authorities to grant
exemptions from the jrovisions of the -oa.rticular codes v'hich they ■■-ere
administering. The aiTjroval of these provisions necessfril;'' constituted
a further delegation of the governmental authority, hut this rc'oort does
not consider this ohase of the nuestion, as it will "be treated hy the
Revie- Studies Group rejortiii^-; upon the ractivities of code authorities,
as sucli.

(*) Admi:"iistrrtive OrJ-cr :C-107, Ilovenler 1, 1934- Administr-^ tive

Order X-93, Septembor 28, 1934 - iJlA. files.

(**) See Executive Order ::o.564G - Ad:aini3trrtiVe Order :'C-123 - IfflA files.

(***) Office Order No. 108 - Au^ast IS, 1:)34, in IW. file

(****) See USA Compliance Division Field Letter IIo, 190.
9844

CIIAF'TSR IV

AMALYSIS OP aPPLICATIQlIS 'FOR Ai'O OPJZP.S OF
EiSl/iPTIOlIS Ai'ID ZXCZP T IOIIS - CAUSES - TYPZS -
C ODZ PaOVISIOlTS AEl^CTED

The Aaturo of the terns "c::cnption" and "c;ccc-ption" and tho
"basis of the administrative grant thereof is to bring relief to a
particiilar individual or groiro of individiir-ls fron hardship, -onfair
situations and other conditions which arc caused "by -uniform applica-
tion of code provisions. The stud;;'- of the subjoct of e-comptions and
exceptions has been based upon an analysis of tho reasons vhy aopli-
cations for cxenptions ^,'ere nade , the considerations Imd by the llationall
Recovery Administration on such applications and the bo.ses for the grant,
denial, or modification of the relief requested. The puthor of the re-
port was aided by a former re'oresentative of the Labor Advisory Board,
who had, during the course, of the code administration, maintained a
record of exemptions from labor provisions. The files of this indivi-
dual v;ere nade available and the index v/hich she kad prepared was used
as a guide in the examination of the actual records and portfolios of
the official orders of grants and denials of exeirations. The investi-
gation caused the ex-iriination of the entire records of the official
orders of exemptions or denials thereof as to the codes. which are listed
in the Introduction to oart Three, supra .

Five hundred and fifty-foux (554) orders of exemption or denial
thereof were examined, of v/hich fo-ur hundred and ei/jht (408) orders
granted exemptions from codes and one hxmdred and forty-si:: (14S)
orders denied the relief requested in the apolication. All of such
orders related to the above memtioned codes, and ap-olied to both labor
and trade practice provisions.

LABOi PHOVISIOIIS

The orders of e::emptions or denials thereof and the supporting data
fovmd in portfolios which were studied disclose that most of the exem'o-
tions granted related to labor provisions and that, in very few cases
were exemptions granted to members of industry from trade practice pro-
visions. A tabulation of the tjrpe of labor provisions to which the apT)-
lications for exemptions were directed and which the WJA officially
either granted or denied discloses the following:-

T;'T>e of Labor Provision Ilunber of Orders

Normal minimum wage provisions 170 "

Skilled minimum wage provisions 8

Overtime wage provisions 12

Apprentice minimum wages 5

Squitp.blc readjustment of wages above the minim-um- 4

Korraal iaa:-:inam hoiirs 295

Peak period hours 2

Hatchmen - ma:-cimujn hours— 8

Overtime tolerance - maximiun hours 29

Child labor provisions 3

Limitation of number of apprentices

or learnei's . • 14

9844

-89-

TyiJe of Labor Pro-v ision - - IT-um"ber of Orders

Slov; vrorker toleraiace.s 21

ProhilDition of home work 2

Specified piece rates 1

liachine hour linitations 65

Production control 7

All labor provisions 2*^

The total of the above tabulation does not coincirie with the num-
ber of orders issued because in manj'' cases an order of exemption was
issued uhich referred to sev.eral provisions of a code, ho-jever, the
tabulation has listed each provision affected.

The records of the orders of the grpaits or denials of exemptions
in most cases contained the application for the exemption, which appli-
cation usually contained the reasons for the application. Examination
of these applications found that most of the exemptions sought were
based upon scarcity of skilled help, seasonal pealc demands, or rush of
orders, as distinguished from rash of orders in a pea!: season. It was
likewise found that financial difficulties of members of industry or
trpxle and iinfair advantages because of geographical differentials
prompted the filing of applications v/ith ilPJl. In addition, most of the
applications relating to machine hour limitations acted upon set forth
necessities of production adjustment or seasonal peal: demands as the
causes therefor. A complete tabulation of the reasons set forth in the
applications for labor exemptions, v/hich supplications were acted upon
either in the form of a grajit or denial thereof shov;s the following:

Reason . IJo. of Aprilications

Departmental diff iculties--r^ 65

Pe?lc demands 63

P.ush of orders 56

Hardship 44

Foreign competition 2

o. j^.."' Cp"orrs3ioia of .sma^-.i/entexprises-' 11

Strikes 6

Emergency (bre,?Jcdovjn) 10

Inventory 11

Scarcity of skilled help ing

Production adjustment 29

Introduction ne'.v articles or process 5 '

Poor Equipment 3

Lack of equipment 14

Lack, of spacc^, 7

Pire— • 4

To start production ' 2

To mal:e career (child labor) 2

Pinancial difficulties 40

Geographical differentials : ' 30

Haaidic.apped or inefficient wor]:ers ' 19

Hulti'ijle codes '■ "10

9844

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Eeason No. of Applications

Competition with exempt firms 2

Inconvenient location 4

Pending investigation 4

Tine lost due to holidays 7

Change of plant operation 13

Charitable institution 1

Shipment delaj'^s 2

Non-compliance of competitors 8

The ahove tabulation, as in the case of the tabulation of code pro-
visions, does not represent each individual applica.tion. Most of the
applications set forth only one ground for relief, but in some cases
various reasons were specified in seeking one exception. It was found,
as a result of the investigation that the reasons, scarcity of skilled
help aiid peak demands vrere linl^ed together, and that the relief request-
ed related to maximiira hour provisions and ovartime minimum wage rates,

WAGE DIZi?£R£l\lTIAL S

ilo cases were found which involved am application for an exemption
from wage diff erentia.ls as to sex, but as stated above, a number of
applications from the minimum \7age provisions v/ere submitted, giving as
reason for relief requested the fact that geographical differentials of
wages vrould impose hardships. A number of these applications originated
with southern manufacturers or in. states bordering those sections in
which a lower geographical differential had been set up. (*) Likewise
various codes set up rates of pa;'' for specified areas, the application
of which resulted in some cases of hardship. The' application for
exemptions from these area rates alleged competitive disadvantages- that
made it impossible to continue the operation of these wages. This sit-
uation araong the codes examined was particularly evident in the adminis-
tration of the Millinery Code (**).

CHILD LABOR- APPRENTICES

The records disclose that only three applications for exemptions
from the child labor provisions of the codes examined were made. These
cases involved boys of 14 and 15 5'"ears of age, ajid in two cases, the
reason given wa,s to embark the boy upon a career. The reason given in
the third case was tliat the father vrished his son to work for him in his
plant. Some applications for permission to employ more learners than
specified in the code occurred in the Handlierchief Code (***)^ the
Milliner;- Code (****^, jj^e reason for such applications was the opening

(*) See Order No. 49-6 axid. Order No. 57-19 in NRA files.

(**) See Order No. 151-9, Order No. 151-24 a:id Order No. 151-5^^,
in NRA files.

(***) See Order No. 53-5;

(****) See Order No. 151-69 in ilRA files.

9844

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of ne\7 o.epartiiients. Relief from the application of tercentages as to
emplojTi.ient of apprentices was also sought; also a number of applica-
tions for exenptipjis from a wage tolerance as to sIo'.t workers which was
set forth in the CJicar lua-niifr.cturing Code. The usual reason given for
the e;:en;ptions from the percentage of apprentice? eriiployed Tvas that
there w.s a scarcity of skilled help and it was necessary to employ ad-
ditional apprentices to carr3'' on production. In some cases, relief
frora the pa,j,Tnent of ppprentice vrage was requested, hut in all these
cases the relief asked related to overtine ratfesri'ather than relief,
frora the pa,yment of minim^un \7ages. Onl>/ '..one ca,se v;as found in which
the applicant asked for permission to pa^"- learners below the minimun
wagps, which application v7aG 'denied (*).

A number of applications requested exemption from the overtime
tolerance provisions of codes. These applications were verj"" numerous
in the administration of the ;)Paper and Pulp Code, Code jlo. 12^^, r<nd
the reasons given .therefor were necessities of bolstering inventory and
inabilit:' to meot orders on time (**). A particular industrial reason
was also given in these particular applications, which was lack of suf-
ficient \7ater power.

TPAiiE peactigj: p::;gv:sioes

As stated above, the orders of exe:.TOtion ex.ariined, disclosed few
which affected trade pra.ctice provisions of codes. A tabulation of the
types of trade practice provisions is a-s folloT^s:

TYPjUS GI'' TPAD-fl PRACTICS PELVISIGITS irUI.ZBEa

All trade practice provisions 2

Productions control 7

Consignment sa,les 1

Price Filing- ■■ • 1

Loss limitation 1

Sales below cost — 2

hislabeling 1

Uniform ter^s nf sale . 1

Container specifications 1

Merchandising plaiis 2

The main reason set fortn in tne applications relating to trade
practice provisions was that the particular applicant was losing busi-
ness and tha.t his continuance therein was dependent upon the relief
requested. Anotner main reason which was set forth with res"nect to
applications for exemptions from production control provisions, sales
below cost and loss limitation, was that the competitors of the appli-
cnjat were not compl-'-ing with the particular orovision. Relief from the

(*) See Order lie . 120-1^5 in ITRA files.

(**) See Orders hos. 12i^-ll, 12'"i-12, 12^-29 and 12r>-37 - l^IRA files.

9844

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code provisions relating to containpr specifications and mislabeling
provisions was requested upon the basis that thp aprilicant had a stock
of cans and containers on hand -^M that the non-use of tt»se containers
would result in great loss to hin. It is interesting t'^vcte the
Administration denied all of tae qoclicitions for exerouya^ns from trade
practice provisions, with the exception of t'f'o.

No orders of exemption were found among the code^ ^"jcamined, sif-
fccting code authority provisions or tne rights -md ooiigations of the
code authorities created under the orovisions of any such code.

GEOrrHAPHICAL LEI GIN OF APPLICATIONS

The origin of aDulications for exemption as to geographical con-
siderations was widespread. Of course, it is realized that the codes
selected fqr examination for the purposes of this preliminary report
would have a very marked effect upon the geographical locations of
the applicants. In many cases the members of the industry or trade
were concentrated in a particular section of the country which would
neccesarily affect the geographical picture, however, the tabulation
set forth below will give some idea as to the origin of applications
for exemption which were officially acted uraon.

districts No. of Applicants

New England (t'aine, New Hampshire, Vermont,

li'assachusetts, Rhode Island, Connecticut) 8?

Middle Atlantic States (New York, New Jersey,

Pennsylvania, Delaware, Maryland, District

of Columbia) — — 157

Southeastern States (Kentucky, Tennessee, North Carolina

South Carolina, Georgia, V/est Virginia, Virginia) 63

G\ilf States (Florida, Alabama, Mississippi , Louisiana — 16

Middle West (Ohio , I ichigan, Indiana, Illinois,

Missouri, Nebraska, Iowa) 121

Southwestern States (Texas, Oklahoma, New Mexico,

Arizona, Arkansas,, Kansas) 19

Northwestern States (Wisconsin, Minnesota, North

Dakota, Souta Dakota"^ 20

Rocky Moijjitain States (Colorado, Wyoming, Utah,

Nevqda) 11

Pacific Coast States (California, Oregon) 11

Pacific Northwest Statrs (V/ashington, Idaho, I'ontana)- 6

9844

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Distric ta Yi r . q-^ An-oli cat ions

Puerto Rico -- . . __ 2

Hawaii n

Alaska a

As stated above, an examination of tne records of the orders of
exemotion incladed t.ie location of t.ie particular apolicant or aT>i--ll
cants therefor. For th<= ournoses of information as to the origin of
aoolications wit-i respect to potialaten districts of the country, the
author has caused a tabulation to be made, shoT-in-.- the distribution of
the origin of applications for exemotions uuon which some official ac-
tion '^as taken with resoect to the si?e of the towns or cities in which
tac oarticular anolicant was located.

Ho. of Crdcrs

Citips of a r.'iillion lorioulation or over 125

Cities with population of 5''0, nnn to l,nnn.^nnn 43

Cities witn loopulation of ir>r>,riro to ^nn^nnn 114 (*)

Cities with pooulation of 50,"ino to inn.oon 53

Cities and towns with TDOioulntion under 5C-,>y-C) I55

In some cases the "ror": sheets on '^iiicn t;ie ab^ve tabulation was made did
not give exact in:f oriiation as to t .le location of the aoolicants - some
cases such as, ''Seventeen rapr.bers of trie industry on the Pacific Coast",
"Members of th^ incastr,/ operating in cor.oetition witti tne Dress I'anu-
facturers" and otaer like designations were unable to be charted as
to location. It is submitted t;ia+ t'i<-^ aoove tabulation reoresents prac-
tically 95;c of all of tae order:-, studied and accordin,Tly oresents a
picture of tae oooalation situ.ation to t.nat extent.

peeils lf e:;el; lPtic:t

The power conferred upon tne President in tne Act oerraitted the
granting of exemptions -^nd exceotions "-itiiin tiie discretion of tne
President, provided t.ie oolici-'S oi tae Act '^"ere effectuated. Th^ exer-
cise of tnis discretion was evidenced in tnp Deri'^d for whicn exemntions
were granted. Scrne aoi-.lications were ref-eived in wnich relief was re-
quested for a liruted oeriod; e.g., one day, one wee":, one month. Other
applica,tirns made nc mention of tne oeriod of time of relief reqaested.
Considerations apon the aDolications had by IfRA often resulted in a
limitation or aa extension of tne time of tne exemrition granted. In
addition, some aoplications requested exemotions for a limited oeriod
and subsequently asked for an extension nf tne exemiDtion for either a
furtner limited oeriod or an unlimited oeriod. All ohases of the period
of exemotions aooearinr in tne orders rf exemotions were studied for this
preliminary reoort. Tne tabulation is as follo'^s:

(*) Note: Records '"f oooulaticn c'larts set forth in the World Almanac,
1935 Edition, were consulted for ourooses of this tabulation.

S844

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PgHICD HC. OF EXEt^TION S

Unlimited .-.-." ——. "^^^

To June 15 or 16, 1935 — '■ "6

Pendina: Hearing 'ir Stady 6

To the EXTDir^ition c" t.ie C''de 1

Until Terminated , 3

PendinF Amendment 2

Sixty Days cr Over 62

Thirty to Sixty Bays 44

Fifteen to Thirt"' Days 53

Cne week to tio \7eeks 5^

Two days to one week 20

Cne day 15

No general analysis of the reasons for these various periods of
exemptions can Ise m^de, V7ith tae exceution of a few. It w^s found that
the exemptions for various Deriods of -time ™ere asked because of various
conditions. An examination finds that the exemiotions granted for one
day or for tne iDericd of from t'^o days to one '-eek ^&Te requested for
the purpose of taking inventory, to repair troken-dovm machinery or to
meet some emergency situation. The unlimited exemotions "^ere granted
d-urin^ tnp early oart of MA administration of codes -^nd being coexten-
sive Tfith the Act, terminated on June 16, 1935. On .or about
February 1, 1955, the Administration becqjne increasineily mindf-ol of the
date of tae termination of the Act, and, as a matter of nolicy, the
source of "hich the author has not explored at this time, orders of
exemption were soecifically not permitted to continue beyond June 16,
1935, Some ^oFd3 lis. stated June 15, 1935 - others - June 16, 1935.
This difference most orobably arose from a misapr)rehension as to the
actual date of termination of tie Act.

The exemotions granted for tne oeriod pending a hearing, study or
amendment are self-explanatory.

RETELACTIVh: £X£tvPTIOgS

Not all applications for exem-)tion were t.ie result of foresight.
Some members of industry or trade being presented vith an emergency
situation, violated tie code provisions and later made aoplica,tion to
tae Administration for exemption from the code to cover the violation
theretofore committed. In addition, applications for exemiotions were
directed to the Administration before tne date upon which the requested
relief v-oulc" take effect, but due to difficulties in routinf', reference to
to Advisory Boards and otner orocedural require-^ents, tap actual deci-
sions as to tae exemotion vas not made and the order of exemption is-
sued until after tae tx'^.p noted in the aoolic^tion had TDartially or
totally elaosed. For example - Crder >Io.3-51 (T7ool Textile Code)
gr'^nted an exemption from tne normal hour orovisions of that code :frora
March 4, 1335 to J'ay 1, 1935 - the order was signed on "arch 8, 1935;
in order Ko. 59-19 (larking Devices Code) the order of exemption was
signed on January 10, 1935 exempting the applicp.nt from the normal hour
provisions of the cod/- from December 31, 1934 to January 10, 1935, the
date upon rhich the order was signed. These cases are kno-tTi as retro-
active exemptions.

9844

The iDOwer of the President to t_,rant axeijptions was of wide latitude,
Guhject only to the liuiitTtirius thit the action should effectuate the
policies of the Act, but the Act does nob contain any specific legisla^-
tive declaration exonio t in^^ certain cliisses or groans of individuals from
the provisions of codes which related to MCiribers of industry or trade.
The absence of this stntatory assurni^tion required administrative exer-
cise of dispensing, powers which necessarily operate upon a foresight
basis. The power to exeinpt v.dth respect to future acts is admitted and
in cases vrtiere applications for exomptio:is v/ere received by tlm adminis-
trative 3t3ency prior to the time to which the exeroption related can
equilly be justified because adnuniEtr''.tive remedies had been sought.
It is true that some penalties accrued as a result of the tardy order of
cxeiiTption, but these considerations are offset by the activities of the
seeker of the remedy. Tnc Constitution does not deter an interested
party from seekint^ administrative remedies and for so doin^;, viola-tions
prior to the adjudication upon the application will not be imposed. (*)
However, in cases where the applicant chooses to av/ait proceedings and
violates the code, the penalties may be imposed. The grant of an exentp- ■
tion in the last mentioned case or on a retroactive basis, is not a
grant of relief from code provisions which have already been violated
but is more in the nature of a nolle prosequi exercised by prosecutors
in the administration of criminal JusTiice. The failure to prosecute
cases is in reality largely an administrative matter controlling a de-
sired effort to accomi-jlish the general piirposes of' a criminal law, even
though in many cases some wrong-doers are allowed exemptions from the
strict torm.s of the statute. It is true that in certain statutory enact-
ments, the effects of which are retroactive, certain exemptions are set
forth. These t^q^es of statutes do not apply here in these cases because
of the absence of mj statutory declaration in the Act. It is the author's
opinion that retroactive ex'omotions, as such, were not in fact exemptions
from -orovisions of codes but condonations of violations already committed
and administrative declarations of intentions not to prosecute, v;hich
declarations are similar to the practice in the criminal law imovTO as
nolle prosequi,

c oiroiT I o:'AL EjSi.pTi o:i_s

A number of orders of exemptions issued by the Administration ex-
empted the j:xsrticular applicant or groups of applicants from the provi-
sions of the code on condition that certain things be done or that cer-
tain requirements be satisfied. (**) The conditional form of exen^tion
did not occur in each case.

(*) ffadJex^S-Outliern R. Go. v. Gcorria . 235 U.S. 651, 652, 569. See alsc
New York Public Service Commission Law, Section 24.

(**) See Order 54-55, Order llo. 120-10- I>iEA Files.

9844

-96- -
TYPiCS ..GF COirorTI GIIS IiviPOS£g__BY_IjRA i:UIAB£R

Payment of '(Vage rates soeci.'ied in tiie oj-der of exemption 9

P.equirement of abiding; "by txif minimum wnge rates in the code — 1

Adherence to rules and ri=,"ulations of tnc Administration 1

Requirement tnat new emoloyees be hired at code rate 1

Requirement that no work be done on a holiday 1

Requirement thit Administrative oermis&ion to incr°qre TDercenta.5e

of estimated volume be obtained 1

Comnliance with code 4

Requirement that overtime be oaid during certain specified m.onthsl

Requirement that no excessive maximum hours be worked 1

Limitation of period of apnrenticeship 1

Lirait'ation of number of apprentices and payment of time and

one-half for overtime 12

Requirement of no pay-cut 1

Limitation on reduction of personnel 2

Limitation on working 95 hours in two weeks 1

Limitation of maximum daily hours and maximum weekly hours with

requirement of deduction from "oeak season tolerance- 2

Requirement that overtime be averaged over 13-week period 1

Limitation of 4S hours a week 1

Requirement of payment of time and one-half for overtime 12

Requirement of payraent of time and one-third for overtime 11

Limitation upon n^uraber of hours of overtime 11

Requirement of reoort of additional hours worked 1

The majority of these imposed conditions related to the payment of
minimum wages or adherence to certain maximum hour requirements. There
is no doubt of the power of the Administration to exempt the particular
applicant or apolicants from the provisions of tne code either upon a
partial or complete basis as to both extent and time, however, the im-
position of a condition must bear a relationship to the general purposes
of the statute in order to have a valid condition. (*)

The declared- policy of the Act, among other things, relates to the
promoting of the organization of industry, the reduction and relief of
unemoloyment and the improvement of the standards of labor. An exami-
nation of some of the types of condii"ions tabulated above might show
a relation to the declared purposes of the Act, however, some of them
may be oven to question. In addition, it is subject to question
whether or not tne Administration should affix a condition to an exemp-
tion order '"nicn is not a part of the code and which a member is not
already bound to comply with. These various phases of the question^.
resulted, in tne ooinion of the author, in man^' invalid conditions
which '"'ere attached to orders of exemption.

The invalidity of these conditions raises two points, one, the
effect upon the minimum wage provision, two, the effect uoon the appli-
cant. It would apoear tnat the grant of an exemption to i^hich an

(*) See Smith v. CaJioon, 283 U. S. 553 (193^)
9844

invalid condition ir>s n.ttachecl '"oula be r\ vilid evenotion but that the

condition woald he inopentive. In U; S. v. Ciiicaf^o, etc., Railway Co .,

282 U. S. 511 (1031) t:ie Interstate- Cor'r,erce Comniission attached in-
valid conditions to its e^rr\nt of a per?iit to issue securities and after
the securities were issued t.'..e' court neld tnat even thou^^h the coiidition
was not severable from the b=icis of the oerT.it, the condition could be
ignored. (*)

It would seem that an investi, coition of the conditions attached to
orders of exeinctions would be no* cess ax";'' in order to determine, with the
background o^ tne legal principles hereinabove stated, whether or not
the conditions imposed were valid in f'-'.ct =ind in law.

There is also tap larger field o:^ investi "fition that, assuming the
conditions attached to orders of exemptions 'fere valid, '"ou^d they in
fact modify the provisions of tae code or cause ambiguity to arise there-
from?

HEASC'TS - ng-II AL C^^ EXE?.'? tIUMS

An investigation discloses that of the oroprs ex-^mined one hundred
and forty-six (146") thereof denied t;ie aoplication for exemption and in
some cases the Administration took occasicn to exoresi; its reasons there-
for. A tabulation shows the following:

RKASOITS FOR D.t ::i aAL OP -IXEiPTILM I^TO/EEK UF CKDEBo

Grant of Exemotion would be unfair to corapetitoi"s 14

Grant of exemption would' result in code collapse — 1

Applicants are code violators 3

Absence of Proof of hardshlo ■ • , 9

Code authority and the Adr-.irii strntion con&idered

grant a particular precedent : • 3

Market over- supplied ■

(Machine hoTir limitation exemption) — • 1

Skilled help available 4

Conditions of aioplicant not dissimilar from tiiose of

othpr m.embera of trie industry 3

Minim.um wages too low to justify exemption 1

The few reasons above tabulated are not of much help in determining
the factors in the actual decision of denial. The orders of exemiDtion
are rather general in their statements of reasons and nc findings of fact
were contained therein. The power of exemotion, as granted by the Ife-
tional Industrial Pecovery Act, is United, to tn^ finding that tne action
is "necessary to effectuate tne oolicy of t.ie Act".

(*) See NRA Legal research memorandum 883, May 16, 1925, memorandum on
tae effect of tae conditional exemotion order.

9844

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The power to grant exemotions is executive in character and it is
presamed that the exercise of po";er was in accordance witn the limita-
tions laid down by Congress, (*) All of the orders of exemotion
examined contained a statrment that the particular administrative ac-
tion set forth in the order was "necessary to effectuate the oolicy
of the Act." This finding, coupled with the authority of a line of
decisions holding that an order of exemption is valid even though ma,de
without any formal findings (**), rendered the action of the Adminis-
tration valid within the terms and limitations of t^ie National Indus-
trial Recovery Act.

CLD£ ACTIVITY AS TO EXEMPTIONS

The activity of tne particular codes studied for Dumoses of this
report in the realm of exemptions may be of interest and the following
tabulation has been made, which snows the name of the code studied and
the number of orders of exemotion found therein. The tabulation also
shows the particular code orovision to which most ao-olications for
exemption referred:

NA'ii C? CODE

No. OF ORDERS CODE PROVISION MOST
OFTEN AFFECTED

Cotton Textile

Shipbuilding & Shiprepairing

Wool Textile

Electrical i. anufac taring

Coat & 2 Suit

Lace Manufacturing

Corset & Brassier

Legitimate Full Lcngta Dramatic

& Musical Theatrical
Lumber & Timber Products (incomplete)
Photographic Manufacturing
Fishing Tackle

Rayon Synthetic Yarn Producing
I en' s Clothing
Hosiery

Automobile Manufacturing
Cast Iron Soil Pipe
Wall Paper Manufacturing
Salt Producing
Leather

Motion Picture Laboratory
Underwear & Allied Products
Oil Burner

30 Machine hour -orovisions

9 Overtime wages

38 Machine hours & normal

maximum hours

67 Normal hours and wages

7 iVagp area rates

20 Maximwn hours

Normal wages

Normal maximum hours

Machine hours

Overtime tolerance

Normal maximum hours

Lvertime tolerance <

Normal hours

Machine hours

All -orovisions

(*) See Panama Refining Co. v. P^yan, 55 Sup. Ct. 242 (lySS),
page 283

(**) See NRA Legal research memorandum 680, March 2, 1935, memorandum
of law on the administrative law governing exemptions.

9844

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NA^•£ OF CODE

KL.OF 0HD":KS CLD£ PROVISION TOST
OF-TSN AFFECTED

Gasoline Pumo

Textile Bag

Transit

Artificial Flower 'x Feather

Linoleum & Felt Base

Lime

Knittinf^, '^raidine: & Wire Cover-
ing Machine

Retail Eilmbe'r

Laundrv & Dry Cleaning

Textile Machinery

Glass Container

Builders' Suoolirs

Boiler Manufacturing

Farm Equipment

Electrical Storage & Wet Primary
Battery

v7omen' s Belt

Luggage & Fancy Leatner Goods

Ice

Boot & Shoe Manufacturing, •■■

Saddlery Manufacturing

Iiiotor Vehicle RetaiiL Trade

Bankers

Silk Textile

Optical M-anuf acturing

Automatic Sprinkler

Umbrella Manufacturing

Mutual Savings '.Banks..

Handkerchief

Throxving

Compressed Air '

Heat Exchange

Pump Manufacturing

Cap & Closiire

Ma.rking Devices

Retaiih Trade

Drest Manirf acturing

Paint, Varnish & Lacquer

Paper & Pulp

Millinery

Can Manufacturers

Wholesale a Distributing Trade

Schif f li , Hand Embroidery, etc.

Men' s Neckwear

Aluminum

Cigar Manufacturing

1
2
12
4
9
2

Normal hours
Normal minimum wagps
Wages, r^Xid hours
Normal maxim.im hours

Normal ma>:imum hours

Normal maximum hour;:
Overtime tolerance

Wages and hours

f.inimum wages
Overtijne tolerance
Maximun hours
Child labor
Machine hours
Hours

Hours

Learners

Minim.ura wages

Minimum wages

Wages and hours

Minimum wages

Overtime tolerance

Maximum hours

Skilled wages

Wages and hours

Overtime tolerance

Area wage rates and per-

centage of anorentices

Hours

I'axinum hours

Normal maximum hours

I'unimum wages

Hours and wages

Slow-worker wage toler-

ance

9844

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GENFRAL EXECUTIVE A:;D AJI'INISTHATIVE EXEt/PTIGNS

This chapter has so far concernf-u itself 'vith tap treatment of
Administrative orders of grant or denial of exeTotions which were issued
after the approval of a code, tiiat is, during tne coarse of code admin-
istration. The content of the study has been baaod "i:^on orders 'affecting (
or a few particular codes. As the qd-nini strati on of codes progressed,
various problpras arose wnicta required drastic and widespread action,
either Executive or Administrative, which would find some exoression in
the issuance of general exemotions.

An order of general exemotion was one issued feitte.r by. the Ei^esr-
dent or tne Administrator and applied to all codes, or to all codes
which were affected by tne particular situation covered. A few samples
suffice. (*) Experience taught the Administration that the operation
of tne PPiA in small towns and hamlets resulted in many cases of hardship
in local retail trade and service trade establishments. The solution
of the problem lay in exemiDtions of those affected, so on October 23,
1933 the President, by Executive Order Ko. 6354 issued a general exemp-
tion from certain provisions of the PSA to employers engaged locally in
retail trade and local service trades, whose place or places of busi-
ness were located in towns 6f less than 2500 iDopulation. This form of
general exemotion was not exercised by the President on many occasions,
but was utilized by tae Administrator to meet nrobleras relating to
policy, hardshio and other situations. Charitable and publicly endowed
hospitals found undue hardship with resDect to purchase of materials
from members of industries subject to codes. This condition resulted
in the issuance of Administrative Order No. X-4 (January 23, 1934) where-
by those members of codified industries who sold materials to charitable
and publicly endowed hospitals were exempted from the provisions of the
codes relating to sales. Difficulties of assessment of members of in-
dustry for code administration necessitated tne- use of this -oower of
exemption, as evidenced by Administrative Order X-3b (**"> MA j^olicy
required some consideration insofar as codes applied to sheltered work-
shops, and in tne execution of this policy a general exeraution was
granted whereby sheltered workshoos '-^ere exeinpted from the operations
of codes on certain conditions. (***) This power of general exemotion
was used on very few occasions by tie Administration and it is mentioned
here for the q.iroose of sho'-'ing one particular tyoe o:f exem-otion and

(*) See also Administrative Order No. X-14n _ MA files

(**> For more detailed treatment of general exemptions created

by Executive and Administrative Orders se^ ""istory of General
Exemptions", vTork Materials No. 75.

(***) Administrative Order X-9, Jarch 3-, 1954, in IIRA files.

9844

-101^

the metnod of execution thereof. On some occT.sions a eener-'il PTeTotion
was issued, upon th'= at)iolication of tie interested parties, as in the
case of Administrative Order No. X-&. .,■*•:"•'■

£XE?.^PTION - B Y CODE PROVISION

Various codes ^s subniitted for aoDroval, and some as agreed uoon
between the sponsors thereof and tne Administration, contained pro-
visions settini^ up exemrjtions from tne provisions of the code. A
usiial pxemijtion found in codes related to sales for exnort whereby the
provisions of the code did not apoly to export sales (*). Other types
of exemptions were written into codes and operated to relieve members
of the industry from the operation of some or all of the provisions of
a code. Various questions arise in connection with these tyo^s of
exemptions, but the author aas not had an opportunity to fully consider
them. One of these problems relates to the above mentioned type of
exemption by which code definitions of export trade varied from the
definition of interstate and foreign comraerce found in 7 (d) of the
Act.

(*) For example, Article X, Oil Field Pumping Engine f/ianuf acturing
Code, T^Io. 547, Supo. 35, Codes of Fair Competition, Vol. XIV,
p. 357.

9844

-103-
CHAP1ER Y
EV.&LUATIO'iS MTD COiilCLUSIOgS

The oor/er to grant exemptions is one easily susceotiole of atuse and one,
the exercise of \7hich, can result in complete defeat of the purposes of legis-
lation from I'hich the exemption is granted. The reasons for the po\7er of
exemptions or dispensing peers, as they are sometimes called, can be broken
dovm as follo\7s:

1. Tefinite ascertainuent of general
legislative language without the
necessity of specific penalties or
law suits.

2. Recognition of special cases which
cannot fit into a general rule,

3. Relaxation in cases of an emergency
nature where humanitarian considerations
are concerned.

4. Relaxation of questionable policies,
especially those of an economic
nature (*).

The above classifications show reasons for the allowance of e xeraptions and
each one of them enables a just enforcement of the Act and as such are necessa:i
to effectuate the policy of the Act,

Chapter I refers to various sections of the Act upon which the power to
grant exemptions can be predicated. Specific mention of the phrase "ex-
ceptions to and exemptions from" in 'Section 3(a) leads to the conclusion that
this section was intended to grant this power. This section however, in the
main specifies procedure for the submission of codes and for the conditions of
a-o-orovsl thereof. Some doubt might arise that the power, to exempt or except
relateed to the time of the order of approval, but a careful reading of this
grant of power reveals that it is not liaked up with the order of approval but
rather is repeated so that there is no such limitation upon the power to grant.
This conclusion is based on the construction of the Act. Chapter I also stated
that a grant of power to exempt vras conferred by Section 10(b), Some doubt
may arise as to whether exemptions and exceptions axe included within the
phrase "cancel or modify", however, it is suggested that the specific s^tatement
be set forth in new legislation, if any, as to power of exemption. Such state-
ments should make it clear that the power to grant exemptions may be made at
the time of the order of approval of the code or afterwards; that the exemption
may be modified or terminated; and that power to exempt may apply to an in-
dividual, group of individuals, industrial subdivision, an entire industry, or
American industry in general, J

Chapter I mentions the administrative discretion conferred upon the Presi-
dent in the exercise of the power of exemption. An arbitrary action with res-
pect to exemptions is not proper and substantive guides as to the subject of
e xemptions denote general principles of fair cl assification. These principles

(*^) Preund, Administrative Powers Over Persons and Property (1928), Pages 128"
9S44 ' to 139, inclusive.

-103-

fa]l into one ox t^-o categories - (l) classifications must be fnir and
reasonable and not arbitrary, (2)' all persons nithin the class must be treated
alike so tliat others not at the moment si:-'lyina; for exemi-jtion may make a loli-
cation at a later time uoon a sho\;in£; that they are within the class so
fefined (*). It is true there is n^' guarantee' in the Fifth Araendment of the
Federal Constitution of eq-oal nrotection of the la.'S, but in cases arising
under the Fourteenth Amendment of the Federal Constitution it does prescribe
eq.ual protection of laws, which ■.vill serve as a. precedent for determining
valid classifications in the exercise of the power of exemptions. (**)

The necessity of exem-ntions being fair and reasonable and that the
application thereof be equally unifoi'ra would indicate that the power to exempt
should be granted legislatively in accordance with a declaration of standards
upon which the exercise of administrative discretion could be predicated
and limited. This form of ^rant of power could specifically set fort', the
various requirements for the grant of an exem-'jtion and require th^t uoon
sufficient showing and a finding thereof by the administrative agency that the
applicant came within the limitation of such standards, the exemption could
be issued.

The issuance of such an exerar)tion could, under the terms of the statute
be declared a precedent for all other -oersons equally situated, thereby meet-
ing the requirements of a fair and reasonable excraotion aptjlying to all persons
in the same category. For the -numoses of information, it coxold be required
that notice a,nd -oroof of condition similar to that of the precedent should be
submitted to the administrative a^rency by the particular person or group of
persons so similarly situated. This requirement of report and ijroof would
enable the administrative agency to take a^ction with respect to any particular
problem which would arise by virtue of the -orecedent crea.ted.

The above mentioned standards for rules and classif icatiois find a basis
for a statement thereon in Section 1 of the present Act. Elaborations upon
these standards can be obtained in some degree from the information set forth
in the Chapter entitled "Causes of Exern'oti^ns". The reasons set forth in the
ap"olicaticns will serve as some criteria for the standards sug.zested. It is

(*) oee l\\3A Legal research meraorand-'am No, 4C6 , November 16, 1934, memo-
randttm of law concerning substantive giiides in granting exemptions,

(**) See Connoly v. Union Sewer Tipe Co . , 134 U.S. 540, 22 S. Ct. 431,

46 L. ed. 679 (1902)
Central Ltunber Co , v. South Dakota , 226 U.S. 157, 33 S.Ct. 66, 57 L. ed.

164 (1912)
GuLf. Colorado & Santa Fe Hr.y.Co . v. Ellis , 165 U.S. 150, 17 S.Ct. 260

61 L. ed. 685 (1897)
Jone s V. Brira, 165 U.S. 180, 17 S. Ct. 282, 41 L, ed. 677 (1897

Se.-^board Air Line Iiwy . v.. Seegers, et 'al , 2C7 U.S. 73, 28 S. Ct. 28

52 L. ed. 108 (19C7)
German Alliance Insurance Co . v. Hale , 219 U.S. 3C7, 31 S. Ct. 246,

55 L. ed. 2S9 (1911)
P.adice v. New York , 264 U.S. 292, 44 S. Ct. 325, 68 L, ed. 690 (1924)

9844

-104-

reglized that ver-- little information is containsd in this reocrt as to the
reasons for exem.tipns from .trade -oractice -.rovisions and also code authority
provisions, "but sone inforraation must be avail^^TDle in scrae of the studiics
being conducted 'oj the Trade Practice . Studies Section of. the Division of ''
Hevie-' and a further study of this subject \7ill discover them.

Exaiainstioia of records of WTU in respect to the use of the terms
"exemption", "e::cev)tion" and "stay"' shows' attempts on the -nart of^ the Adminis
tration to differentiate the meanirss thereof, folio-Tad by' attempts to treat
the terms srynon-mously, resulting in interchangeable iise of the terms. Utter
confusion resultea as to the exact meaning of the administrative use of the
various terms. Adjuinistrative orders covering identical situations in one
case TOuld e:vempt the particular applicant from the provisions of the code
and in the other, stay the provisions of the code as to the particular ap-oli-
cant. It is true that the effect of the a diainistrative action does not depen
upon mere terminology, but for -jurrjoses of a dministrative cl-rity, the pro-
cedure and the lihe, it is recomniended that legislative definitions of the
terms "exemption" a.nd "exce-otion" be made to act as guides to administrators
of any new Act. It is suggested that the term "exerrotion" refer to adminis-
trative action by which the particular member of sn industry or trade or
several members thereof, including geogrjmhical or indaxstrial subdivisions,
or the entire moustry, are relieved from full or iDartial ooeration of a code
and that an exerarition cannot operate unless there has been a r^rior obligation
to abide by the code.

^ The terra "exception" should refer to administrative action whereby an \
individual, group of individuals, either in geogrn-nhical or industrial sub-
divisions, or an entire industry or trade is relieved from the operations of
a code, or portion thereof, by the terms of the code itself .

The terra "stay" should refer to administrative action whereby an in- '
dividual, grouo of individuals, either geogra-ohical or industrial, or an
entire industry would be relieved from the operation of the r,rovisions of
a code, in whole oria part, by the order of apiDroval of the code. The stay
operates from the time of the promulgation of the code and recognizes the
existence of the particular provision but relieves persons x..m the ODeration
thereof fron the time of the order of apv,roval. The effect of an orderof
stay -issued after the approval of the code would, under the suggested defi-
nition, be an oxeraption and not a stay. The suggested definitions raay serve ;
sorae guide and it is ,:ost strongly urged that some clarification of the terras
be made.

This report lists the actual official record of the delegation of iDOwer
to grant exemptions. ^ The record of itself is in the main sufficient. An
examination of the files discloses various deviations in the authority grantee
It is true, consideration of speed and emergency , confronted the Adminis t rat ioj
in 1933 and the early part of 1934. Such matters as delegation and the uropei
expression thereof seemed of secondary irar)ortance. . In addition, the excesses
of authority found in the records were not attributed to the Administrator or
the National Industrial Recovery Board, but .rather to the lesser officials of
KRA. Lack of ocordination of activities and Tjrecedents upon which their
actions could be based Were very strong contributing causes of these excesses
of authority. If the sugg.;stion relating- to standards and classifications as
to exemrjtions iS followed, the necessity of gross delegation would not be so
real. The variances may in some cases have been due to problems of procedure
9844

and intercfrice c^eration. The situation is not cf such ini-nortanco as to re-
quire legislative action, lio- over, it is suf-fTcsted that the -oower to grant ex-
eiimtions should remain in the administrative a 5,ency v/ith the possibility of
some dele:^:ation to an oxenmtion off icef , ':T'ho ' should "be the only one permitted,
other than the head of the administrative agency, to exercise this power.
Since this report has not considered auestirns of d^lay and inefficiency r/ith
resT^ect to geographical considerations, the question of the re~ional docentrali*-
zation of authorit"'- is left o oon as to su3;,-;5Estion, hoirever, the plan initiated
1)7 the National Industrial Hecovory Board nith resr)ect to exemptions in terri-
torial codes as evidenced 'hj Office Memorandum No, 348, March 19, 1935, should
tie cont'inued. It is the or)inion Of the author that the v.holesale delegation
of the -oovcr to exera-ot resulted in lac': cf coordination and little knoi-'ledge
of the' extent and nuiriter of the aVolicatirns being stibmitted, thereby re-
sulting in inequities, code brea:'-do\7ns and arbitrary rulin-^s. A tighter,
closer and mor^ carefully guarded c-ntrol of this poi,7er would restilt in better
ad'iinistrativo use thereof.

The elimination of th.^ causes of exera'otions depends upon the tj'pes of code
provisions to which exemptions would be addressed. The analysis of e xem^itions
and codes in Chapter IV, is more a matter of historj?- than a basis for concrete
suggestion ps to loarticular codet. The experience had with certain industries
as to certain provisions, of course, is helpful, provided the same type of
provisions would be submitted by the same 'industrTr, AJ'rnowledge of the
conditions in the industry 'of ten ,j,s the controlling factor as econCinic and
industrial conditions raaj''' change , but it is suggested that, in consider-^tion
of any new codes, particular attention be paid to the following: Multiple
codes, overlapping definitions, peak seasons in the 'industry, adequate pro-
visions for rush of orders,, availability of skilled help, financial condition
of the members of the industry, the departmentalization of the industry, labor
unrest in the industry, r^eograohical differentials, all of which result in
applications for excmptidns.

The a-athor does not feci 'q-aalified, upon the basis of this report, to
submit any recovanendations regardin-; trade practice provisions.

It is suggestcid that with respect to the neriod of an exemption, great
latitude and discretion be reposed in. the administrative agency.

It is *sug,.?«sted tliat retroactive exemptions, as such, be eliminated
and that if situations arise whereby -oower of condonation shoiold be utilized,
that it be used in that manner rather than in the forn of a retroactive ex-
emption.

It is the opinion of the author that a number of administrative orders
of exemptions contained conditions which, under the ordinary niles of law
of ccndlticnal exemptions, were invalid. The necessity of conditions in
exemptions is recognized, but the administrative exercise of the imposition
of these conditions should be liraited ''oj st'^tutory declarations as to the
types cf conditions which could "ce inncsed, bearing in mind the legal re-
quirement that the condition must bear relaticnship to the matter upon which
the order of exen'-iticn is issued.

9844

-104-

realized that ver-',- little information is containad in this roocrt as to the
reasons for exem 'tif^ns from ,t>rPde practice irovisions and also code authority?
provisions, 'out sone info r-nat ion must be avail^ible in scrne of, the studiics
teing conducted oy the Trade Practice . Studies Section of the Division of
Sevie',' and a further study of this subject trill discover them.

Exaiainatio^ of recoi'ds of l<[3ji. in respoct to the use of the ternjs
"exemption", "ercception" ano. "stay"' shows attempts on the part of the Adminil
tration to differentiate the meanirgs thereof, follCTad by attempts to treat
the terms synon^-moxisly, resulting in interchangeable use of the terms. Uttei
confusion resulted as to the exact raeanin.? of the administrative use of .the
various terms, Adjainistrative orders covering identical situations in one
case would e:-:erapt the particular ap;olicant from the provisions of the code
and in the other, stay the provisions of the code as to the particular appli-
cant. It is true that the effect of the administrative action does not daper
upon mere terminolC;,y, but for ^jurposes of a dministrative clrity, the pro-
cedure and the lihe, it is re contended that legislative definitions of the
terms "exemption" and "exception" be made to act as ;'5uides to administrators
of any new Act, It is suggested that the terra "exemtion" refer to adninis-
trative action by which the particular member of pn industry or trade or £
several members thereof, including geogrjinhical or industrial subdivisions- "
or the entire inoustr;/', are relieved from ful'i. or partial o-oeration of a cod<
and that an exera-ntion cannot operate unless there has been a -nrior obligatioi
to abide by the code, JL

The term "exception" should refer to administrative action whereby an
individual, group of individuals, either in .geogrni-hical or industrial sub-
divisions, or an entire industry or trsde is reli(iv.?d from the operations of
a code, or portion thereof, by the terms of the code itself .

The terra "stay" should refer to administrative action whereby, an in-
dividual, grou'o of individuals, either geogra-ohical or industrial, or an 1
entire industry would be relieved from the operation of the provisions of ^
a code, in whole or in part, by the order of approval of the code. The stay
operates from the time of the iDromuljation of the code and recognizes the
existence of the particular provision but relieves persons ^-,m the operatioi
thereof fron the time of the order of aporoval. The effect of an order of
stay 'issued after the approval of the code would, under the suggested defi-
nition, be on exeraption and not a stay. The suggested definitions may serve
some guide and it is ,;ost strongly urged that some clarification of the termi
be made.

This report lists the actual official record of the delegation ©f povrer
to grant exemptions. The record of itself is in the main sufficient. An
examination of the files discloses various deviations in the authority grants
It is true, consideration of speed and emergencj'- .confronted the Administratic
in 1933 and the early part of 1934, Such matters as de-legation and the prop(
expression thereof seemed of secondary ira-oortance, _ In addition, the excessei
of authority found in the records were not attributed to the Administrator oi
the National Industrial Recovery Board, but .rather to the lesser officials o]
WEA, Lack of ocordination of activities and i^recedents upon which their
actions could be based were very strong contributing causes of these excesses
of authority. If the suggestion relating to standards and classifications as
to exemptions iS followed, the necessity of gross delegation would not be so
real. The variances may in some cases have been due to problems of procedure

and intercfTice o^:ieration. The sitviation is not cf such iimortance as to re-
quiro legislative scticn, ho- over, it is suf-r Tested that the nc-nor to grant ex-.
emntions should remain in the administrative p ^.^ncy v/ith the possibility of
some delegation to an oxemntion officer, r^ho ' should he the only one permitted,
other than the head of the administrative agency, to exercise this power.
Since this re-pcrt has not considered questir^ns of d.^laj'' and inefficiency r/ith
res-oect to geographical considerations, the question of the regional decentrali*
zation of authorit-'- is left o ocn as to su:;gostion, however, the plan initiated
by the National Industrial Hecovery Board rith rcsncct to exemptions in terri-
torial codes as evidenced b"/ Office Memorandum No, 348, March IS, 1935, should
be cont'inued. It is the o-oinion Df the author that the v-holesale delegation
of the ;oc"er to exera-nt resulted in lac': of coordination and little knoi-'ledge
of the extent and nmnber of the aVolicatirns bcin^, s^ibmitted, thereby re-
sulting in inequities, code brea::-do\7ns and arbitrary rulings. A tighter,
closer and raor- carefull^'/ guardec". c-~ntrcl of this porrer wovild result in better
ad'iinistrativo use thereof.

The elimination of th- causes of cxera-otions dspends uoon the tj-pes of code
provisions to v/hich exemptions would be addressed. The analysis of exem-ntions
and codes in Chapter IV, is more a matter cf histcr;'' than a basis for concrete
suggestion as to laarticular codet. The experience had vdth certain industries
as to certain provisions, of course, is helpful, provided the same t3rpe of
provisions wo-old be submitted bj^ the same 'industr^r. A.i'inowledge of the
conditions in the industry 'of ten ,is the ^controlling- factor as econcnic and
industrial conditions may' change, but it is .suggested that, in consider-^tion
of any new codes, particular attention be paid to the following; Multiple
codes, overlapping definitions, peak seasons in the 'industry, adequate pro-
visions for rush of orders, availability of skilled help, financial condition
of the members of the industrjr, the departmentalization of the industry, labor
unrest in the industry, r'-oograohical differentials, all of which result in
applications for exemptidns.

The author does not feel 'qualified, upon the basis of this report, to
submit any recoia^iendations regardin.r trade practice provisions.

It is suggestc'.d that vrith respect to the -rieriod of an exemption, great
latitude and discretion be reposed in. the administrative e^^^ency.

It is 'suggested tliat retroactive exemptions, as such, be eliminated
and that if situations arise whereby oower of condonation shovild be utilized,
that it be used in that manner rather than in the forn of a retroactive ex-
emption.

It is the opinion of the author that a number cf administrative orders
of exeraT)tions contained conditions which, under the ordinary niles of law
of conditional c:;empticns, were invalid. The necessity of conditions in
exemptions is recrgiized, but the administrative exercise of the imposition
of these conditions shoiild be limited by st-^tutcry declarations as to the
types cf conditions which could "oe im"ocsed, bearing in mind the legal re-
quirement that the condition must bear relationship to the ma.tter upon which
the order of exenoticn is issued.

9844

-lOB-

PAHT T'IRSE
Appendix No. 2

4. .524 Regional nnd Strte Direc-tors
4.5241 E:ctent of delegation.

4.52411 Service Cedes.

4.52412 Codes in aenaral.

4.525 Territorial adininistrfltors.

4.5251 Limitations and requ.irements.

4.526 Delegation to Cede Authorities ty
4,5,";61 Code prevision.

4.5262 • Administrative order.

4.5263 Bj-lavfs of Code Authorities.

4.5264 General sd'ainistration ;:)elicv.

4.5265 Legal aspects of delegation to Code
Authorities.

4.6 Dele;j;ation of ;oower for purposes of ap'oeal,

4.61 Industrial Appeals Board.

4.62 Advisory Coiincil.

4.63 Adiiinistrator end Hatienal Indu.stri3l Recover'/ Board.
5. •• Kinds of exera-jticns and exceptions.

5.1 Exeni-oti':^n from provisions of all codes.

5,11 C-oneral - exempts certain -oersons fron all codes.

5.111 Exclusion of individual rianual laoor - selling -
marketin-? of iroduce of farm in Act,

5.112 Causes of ;enornl exem-Dtions.
5.1121 Prisons.

5,112.? Eeder-'^l er State com-'-iotition.
5.1125 Sheltered TToricshops.
■3 „ 1124 Territorial ;orobl3ras,

5.1125 Form cocperatives. •

5.1126 Trade, or industry in toxins of 2500 or less,

5.1127 Geographical problems,

5.1128 Llulti 'le codes. '

5.1129 Other causes.
5.112]^ T"'pic-nl cases.

5.113 Method of exe ntio-i, . •

5.2 Complete individual exempti'-n.

5.21 Exem'Tts one or more industry or trade aemhers from
''^11 provisions of p code,
5.211 Causes,

5.2111 Sm.Tll riraotint of business under code,

"1,2112 Multiple codes.

5.2113 Geogra-ihical proble;ns.

5.2114 Banlcruptcies and business failares.

5.2115 Receiver shins.

5.2116 Foreign comnetition.

5.2117 Subject tr other governnent agencies.

5.3 Partial individual exemption,

5,31 Exempts one or more industry or trade nembers from
Tj.?rt of the provisions of a code.

9844

-109-

Exein-oticns pnd exce-jtions fron crda 'orcvisions relating to labor;

Gil Hyp&s c-f hour and wbges exeiTotions,

5.11 Unlimited,,

6.12 Ccnditional.

5.13 T^roical cnses.

6.2 i.iaxii.'iiun hoiors.

6.21 Normal periods.

6.22 Pep.'- iDeriods.

5.23 Overtime tolerances.

6.3 .Minimum vages. ,

6 . 31 No rm3 1 ra te . ,

6.32 Overtime rote.

5.33 Apprentice rate.

6.34 S'^-illed rate.

5.35 , Union contract rate.

5.4 Reasons for maximtmi hour and minira-uia \7age exemptions.

5.41 Geogra'ohical dif iere:itipls.

5.42 Inahility to operate under code -orovisicns.

6.421 Scarcity of labor,

5.4211 Ccmmon.

5.4212 Ap-orentice.

5.4213 Skilled,

6.422 Peak demands,

6.423 Rush of orders.

5.424 Inventory bolstering.

5.425 Emer.^ency T7ork.

6.4251 Protection of property.

6.4252 "i.Iaintena::.ce,

6.4253 IJeath^r, fire, acts of God.

6.426 Competitii^n' with uncodified industries.

6.427 Pcdoral and state competition.

6.428 Financial difficulties.
6.42S DenartLiental diff icv-lties.

6.5 Gener-'-il labor provisions.

6.51 Child labor

6.52 Apprentices.

6.53 HandicaoToed workers.

6.54 Standards of safety and health.

5.55 Home work.
5,55 Stretch out.

6.57 Scri^o -'ia3n'aents,

6.58 Equitable readjustvient of wages above the ninim-um.

6.59 Posting.

6.51_ Collective bargaining;.
5.52 Miscellaneous.
6.,6 Ty^Dical cases and discussion thereof as to
6.61 Bases of exemptions.

6.52 Developiuent of policj'-, ■ .

6.53 EvaLiation of e:gperiences.

9844

-llp-

7. Excraotions .?nd exceptions from trnde iDracticc -orovisicns,

7oi p«n.A.

7.2 Codes.

7.0 Kinds of provisions.

7.31 Gener.?! trpde practice rules.
7„S11 Codes.

7 = 3111 Generally ncceptod in la':.'.

7c3112 desirable but not fully accepted in law.

7o3113 Lesirsble but no basis in lou.

7.3114 Undesirable.

7 . 31J 5 Unenforce-^. ble .

General annl3/sis and disear^sion of tx-JcJe ■iracticc rules from vievrncint of
cxep.ptions and exrc-'ptions. '

7.32 Code Autii'irity rules and regulaticns havin-'^- force
and effect cf trade p-.-.ctice rules.

7.33 Price oriicyo
7.331 priee fixing.

7.3311 : ■■. 'xod ^.ricos.
7o3312 LcT/est reoconaole orice.
7 1,3313 Modal raark-uo;
7.3--i2 J^rice control.

7.3321 Less leadors.

7.3322 Loss limitations.

7.333 Open iirice systems.

7.3331 Institution cf system.
7,.3S32 Particular contracts.
7,3333- Hethcd cf oeration.
No bC ; Jor pui-pose of dj.scussians bid deMc'aitdry s-ystenis are inclr.ded
under this '.nb-division, •■■''■

7.334 Cost prrvisicns;-

7.3341 Galot; Dolon cost.

7.3342 Obsolete goods,

7 r 3343 Jil^.-iCrgency disposals.
7.334-i Con. edition. " •

7.335 Account in;? systems.

7.33.51 Necessity of approval of Administrator.
7.3352 Complexity of system. ■
7c3353 JDiff icvlties of installation,
■7,335 SaJ.es rcporti:.'-: systems.

8. Exem-otions and cxcej.'tiions from Code A.uthcrity provisic.as,

8.1 Duties required by code provisions,

8.11 Organization cf 'jGde Autliori i.;^-.

8.12 Kenorfs b"'" Code ijuthorities.

8.13 Compliance activitiet,..

3^14 Gonei-al code administr-'tirn.
B.2 IT,?.. A. rules and -'ot^ulations rc-gardin;; activities cf
Code Atithoriticti.

5.3 General executive and a di.uni strati ve order re--;;arding Code Authorities.
o,31 Ora:finization,

J, 32 Mandatory requirements,
.?'.33 Code administration.
C,34 Compliance.

9344

-Ill-
Code Authority finances.

9.1 Necessity of ^.xeciption,

9.11 Adiiiinistrative Order X-19 ^nd. siibscquent oi-aprg
rclatiniS thereto.

9.2 Development of terninaticn of oxenption.

9.21 Necessity.

9.22 Eases of applications thurefdr.

9.23 Considerations by N.R.A.

9.24 Determinations.

9.241 Complete termination.

9.242 Partial termination.

9.25 Effects.

9.251 N.R.A. policy.

9.252 Code Authority finances.

9.253 Com"oliance and enforcement.
Labels.

10.1 Bases of .exemptions from lahel iirovisions.

10.2 Effect of exemptions granted

10.21 Upon industry members,

10.22 Com-'iliance

Exemptions from requirements' of re-ocrting data,

11.1 Where Code Authority is reporting; agency.

11.2 Wiiere re-oorts are required fron individual members of
industry,

11.3 Usual governmental reports

11.4 General executive or administrative orders as exemptions
from re-)ort-making.

11.5 Hiiles and regi-Jations re exemptions fro-, rcijort-making.
Government contracts,

12.1 Discussion of Executive Orders 6337' and B646 as to
exemptions,

12.2 Bases of a-y lic=ition for exemptions from executive orders,

12.3 Nature ^nd extent of ex.-.nptions granted,

12.4 Effect of exemptions upon purpose of executive orders.
Conditional orders of approval.

15.1 Natijre of exemptions requested.

13.2 Considerations by N.H.A.

13.3 Determinations.

13.4 Effect upon conditions and j;eneral code structure,
i.iiscellancous e::em;)tions,

14.1 Code Provisions.

14.2 Executive and administrative orders,

14.3 Policy,

14.4 N,R,A, rules and regulations.
Time of e:-emption,

15.1 Diiration of Act,

15.2 Torai30rary period,

15.3 Retroactive,

15.4 Conditional

15.5 Emer:;:ency.

9844

-lis-
le,. Procedure a.s to exemptions.

15.1 Application 'hj .

16.11 Industry member.

16.12 Industry grou'o.
16.15 Code Authority.

16.131 Rational.

16.132 Local.

16.14 Instituted by N.H.A.

16.141 Industry Division.

16.142 Le;a,-al Division.

16.143 Advisory boards,

16.144 Field offices. .

16.145 Other departments of N.Fv.A.

16.15 Government, agencies other than II.R.A.

16.16 Labor.

16.161 Individual.

16.162 Group of em-oloyees.

16.1621 Unorganised, .•■

16.1622 Union.

16.2 To whom T/as application directed.

16.21 Washington.

16.22 Field offices.

16.23 Code Authorities,

15.24 Other governmental agencies,

16.3 Consideration of application.

16.31 3v deput:%

16.32 Advisory Boards,

16.33 Research and Planning Division

16.34 Legal Division,

16.35 Administration members snd. Code Atithcri.ty.
.16.36 Review Division

16.37 Extent of consideration by beards, etc., and

limitations thereon.
16.53 Division administrators..
16.59 Higher officials and President.
16.3]- Extent of consideration of. briefs pro and con.
16,32 Field offices - N,R.A.

16.4 Due process rer[uirement.

16.41 Arjplica.tions submittod to hearing.

16.411 tj^e , form and e xtent of notice,

16.412 Place of hearing.

15.413 Record of hearing.

16.42 Applications submitte.d to an opportunity to .Ov. heard.
16.421 TjTpe, form and extent of notice.

16.43 Application receiving no public consideration.

16.44 Discussion of treatment of applications with
regard to due iirocess requirements,

16.5 Final action on apnlication.

16.51 Form.

16.52 Notice.

16.6 Time of submiasionc of application.

16.61 Before effective date of Code.

16.62 Code administration.

16.63 During ccmoliance com^olaint,

15.64 During litigation.

9344

-,113-

cf exeni'otion.

Autiicrities to grant exemptions
rrant excimDtions.

16.7 Time of handling 3p;olications.

16.71 A'oplicTtions received in field,

15.711 Geogrophical cnsiderstions.

16.712 Bala^^s caxi.sed oy i-cference to Washin--;ton,
1C-.713 T]A)ical ceses.

16.72 A"i:"olicatirns received "by or referred to Washington,

16.721 Routing of applications.

16.722 Necessity of reference to "bo-rds.

16.723 Causes of delay.

16.724 Effects of delay on

16.7241 Code structure.

15.7242 Compliance.

16.7243 Enforccnr^nt.
Power of subsequent modif icfition or tcrrainatioi

17.1 N.R.A. initiation.

17.2 Applicption Toy industry.
1'^.3 ApTJlication by labor.

17.4 Application by Code Authorities.

17.5 Application by other parties.

17.6 Bases of ap^ilication.

17.7 Effects of modification or termination.
Substantive problems.

13.1 Should K.E.A. -o;rmit Code
pnd exceptions.

13.2 Should K.R.A. -nermit field offices to

13.21 Torapornry.

13.22 Emergency,

13.23 Permanent,

13.24 If revie?' should be had by Washington,

13.3 What requirements of due process should be considered by N.H.A.

13.31 Kotice.

13.32 With or vrithcut hearing.

18.4 Should applications for exemptions and exceptions be
referred to:

13.41 Code Authorities.

13.42 Other governmental agencies.

13.43 Administration members.

13.5 General legcl effect of amendr^ients, stays and interpretations
UTJon exemptions and exceptions.

18.6 Should the exemption or exception ruling be a precedent for
all parties similarly situated.

13.7 Goneral legal aspects of

13.71 Retroactive exemptions.

13.72 Temporary exemptions,
1^,73 Conditional exemptions.

Effect of exemptions.

19.1 Industry

19.2 Labor.

19.3 General code structure.

19.4 Initiation of amendments - stays,

19.5 O"opression of small enterorises.

19.6 Monopoly.

19.7 Development of pel icy.

-114-

20. Discussion of procedure and constructive su,£.gsstions relating thereto,

21. Evaluations,

22. Conclusions.

23. Bibliography.

9344

-115-

PAI-iT ?OUR: cod:: AiaiDMl^lITS

D. L. B J la- Id

9844

-116-
lilTECDUCTIOlT

Undor the --authority of Executive Order ITo. 7075, Jime 15,
1935, the Organization Studies Secticn cf the Division of Review
hr.s designated the subject - Araondriients - for study .^.nd report.
The subject -X-^plies to those phases of the activities cf ITPJl
as a governmental aj^jency in its treatment of amendiaents to codes.
The probloms, questions, and attendant raa-tters relative to the
subject are presented in this report. The content cf the r ncrt
is primarily concerned T.'ith the bases of power, dele£;ati-ns of
such power, the necessities of such power and :.'f the extent of the
delegation thereof. The report also considers the tyi'ios of code
provisions amended, the industries affected by such aiaendments, and
the effects of such amendments.

An analysis of the types of code provisions amended and new
code provisions inserted in codes 'oy way of amendment is set forth.
Some treatment of the benefits and detriments of amen(?Lments to the
particular industries concerned is included in the report - such treat-
ment beinL; limited to amendi"nents of labor provisions.

As a basis for this reiort, toie author ha,s ccnpiled a list of
all araendinents approved from J^vne 16, 1933 to I.iay 2, 1935, inclusive,
(approximately eight hui:idred) . The list also sets forth the nature
of the amendments as to the type of code provision affected. lie
attempt hs.s been made to explore the causes for such amendments and
the considerations had by 1-T3A prior to approval. Time, for the

purposes of this reTjort, did not permit, althoti^li some r,mencljnents
?7hich resulted from applications of -oolicy have been noted.

The sources of this report and the findings set forth therein
are the files and records of the national jlccovei^' Administration.
lie outside sources of inforroE'.ticn ha.ve been, investigated and no
conferences or conversations ha,ve been had with any other governmental
agencies or any private individuals^ The records of code authorities
and trade associations have not beon examined, as the intention of
this re-jort is to present in preliiuinary form from ITIiA sources some
answer to the questions:- (l) YJas the 2:)ower to amend codes properly
conferred uoon ITHA? (2) '.Vhat did IIHA do in the exercice of this power?
(3) 'j'liat should any f"Lirti\re governjnental agency, embodj^ing '.ne principles
of ij3A, be empowered to do va th res-oect to amendments of cooes?

9844

-117-

.AS::s or ?o :x

On Juno Ih, 1Sj3j t'^'-Q Froricent signec. the ITationr.l Inc'-usti-ial PlS-
covery Act. {■'■) Title I tliernof relstci". to innistri.r.l recovery r-nd aiong
other thin ;k v^ovic.en for the io'^valr.tion g" _ji'0'ail^ irtion of coc.cs of fair
CO 'petition. Section 3 (p) o:" the Act ntates:

"U"jon the e;o;plicrtion to th.e Presicent o"' one or lore
trc?,de or in-hAstri-.l aanociations or .';ro"Li"_":.s, the Fresi-
clent AC'-- p-jprove a code or coSes of fair conpetition for the
trac'e or inC:r.stry •"r r;-a"j'"ivision thei-eof, represented
"by the a", licant or a;,. -lica- ts, i:' the President ^inds
(l) t.nr.t cuch r.ssociatioj'iS or ,:rojp'S inpose no ineouitahle
restrictions on arViission to le. "hership therein and are
truly representative of sv.ch trades or i:".c-i.iEtries or suo-
divisions thereof, r.nd ('^) that such code or codes are
not desip'ned to pio;:ote lonopolies or to e"'.i 'inate or op-
press Enall cntororises rnd ■■.ill not o^pcrrate to discri-
r.rinate a-^ainst the:, a^nd ■•-'i'J.l tend to e.-fectuate the
policy 0"^ this title; ?:.o-'ic cd, Shat ?raeh code or codes
shall -not ■pe^r:.iit laono'polies or n.ono poli-- tic' prc.ctices:
Frovir.ed further, '^'hrt •diiere s^ich codt or codes ..affect
the 5er"."iceG and -.'oi.fare. of perso.-.s cn,-;a;:ed in other
steeps of the econo ic -process, nothin'-.in this section
shall de.-^rive s-ach persons q-j" tiie ri h_t to he heard
prior to approval h;' the President of s^ach code or codes.
The President r.r--, as c? condition of his av. roval of any
s\ich code,. i-rooFS such, co^nditions ( i-icludi^n.;; require:"ients for
the 'jai'-i^ji : o" reports and tl..o hee^pi'ny of rcco-o.nts) "or
the -protection of co'iru-icrs, co:'ipc;titors, e-vplo^;ees, and
others, and m furtheia-nce of "'die -puolic interest, and
na- provide. s"a.3h er.ceptior.s to anc^ enenptions ■froM the
provir.ions of such coc'e, £.s the Presicent in .^.is. f iscre-
tion dpo:!S necessary' to cff>'ctur.te t'-te policy h^erein
declared. " ■

Section 3 (<^''-) of the Act states:

"Upon hie o-'^n notion, or if conplaint is .lac.e to .the President ■
that ahuses ininical to the puhlic interest and contrary to
the policy herein declared are ■prevr.lent in a;iy trade or in-
dastry or suhdivision thereo'f, ?.nc". if 'no coce o^f fair cojrpe—
tition therefor has the .-etof ore "been s.pproved ''o'j the President,
the President, after s^ach ■puhlic notice a-nd hearing e.s he
shall s'^ecify, nay prescribe r,nC. approve a code of fair con-
petition for such trarhe or ind^c.stry or siijr'.ivision thereof,
'.Thich shall have the s-". ic effect .as a code of fair conpeti-
tion approved by the President under suusection (a) of this
section. "

(*) Puhlic ..esolution llo. '>7, 11.-1. 5753i 1:''^"'^'- Con"ress, US Stats.
1S5, hereinafter crllcd the "Act."

- 118 -
Section 4(a) of the Act states:

"The President is authorized to enter into agreements with, and to
approve voluntary agreements "between and among, persons engaged in
a trade or industry, labor organizations, and trade or industrial
organizations, associations, or groups, relating to any trade or
industry, if in his judgment such agreements will aid in effectuat-
ing the "Dolicy of this title with respect to transactions in or
affecting interstate or foreign commerce, aiid v/ill he consistent
with the requirements of clause (s) of subsection (a) of section 3
for a code of fair competition."

Section 7(b) of the Act states:

"The President shall, so far as practicable, affoi'd every opportunity
to employers and employees in any trade or industry or subdivision
thereof with respect to v.'hich the conditions referred to in clauses
(l) and (2) of subsection (a) prevail, to establijh "oj mutual agree-
ment, the standards as to the maximum hours of labor, minimum rates
of pay, and such other conditions of emoloyraent as may be necessary
in such trade or industry or subdivision thereof to effectuate the
policy of this title; and the standards established in such agree-
ments, when approved by the President, shall have the same effect
as a code of fair competition, aoproved, by the President under sub-
section (a) of section 3."

Section 7(c.) of the Act states:

"Where no such mutual agreement has been approved by the President
he may investigate the labor practices, policies, wages, hours of
labor, and conditions of employment in such trade or industry or
subdivision thereof; and upon the basis of such investigations, and
after such hearings as the President finds advisable, he is authorized
to prescribe a limited code of fair competition fixing such maximum
hoTirs of labor, minimum rates of pay, and other conditions of eii>-
ployment in the trade or industry or subdivision thereof investigated
as he finds to be necessary to effectuate the policy of this title,
which shall have the same effect as , a code of fair competition
approved by the President under subsection (a) of section 3. The
President may differentiate according to experience and skill of the
employees affected and according to the locality of enployment; but -•
no attempt shall be made to introduce any classification according
to the nature of the work involved v/hich might tend to set a maximum
as well as a minimum wage."

The above quoted sections all refer to various t-foes of coded or agreements
which would serve as bases for amendments thereof, but it is to be noted
that in none of the quoted sections of the Act is fo-und any reference or
specific mention of the terra "amendment" or the power to amend.

-119-

U^caninp.tion of Sections 10 (a) anr. 10 (li), --iiich provicle as
folic rs:

"Section 10 (a) - The Frosicent is oratlioirizecL to pi-ecril)e

such rules anc-. re^'ul.-^tionK as nprj be nocessa:;y to carr," out

t-iie pxirposes o:" this title, a.n(' fees for licenses anc. :"or

filin"- codes o: fair conpetition anc. a,:;ree-ients, anr". any

violation o"? a.n" such rule or re-rcl^-'^'io-'"^ shall De '"unish-

ahle "by fine of not to exceec". O^OC, or i:rpr isonraent for ^

not to e::ceeo. si:: lonths, or "both,

"Section 10 ( b) - The Presic.ent 'lay fron ti::e to tine cancel
or .lo^'ify any orf.er, nprovpl, license, rule, or regulation
issu.ec". unc^.er this title; anc^ each a',;reeMent, coc.o of fair
conpetition, or licnnse approved, prescrioec., or isstied un-
der this title shall contain an or.'oress provision to tliat
cf r^ect."

lihe-Tise sho'js no specific nention of such terv.i or po'-er. This lad: of
le;:;islative declaration requires a construction of the Act upon -Thich
to precicrte the po''er to enend coc'.cs,

A usual ■.lethoc"'. of statiitory constr'action is:-

"to have recourse to tlie leyislative "nistory

of the.Act and Statenents 'by those in chaiY^e

of it e.urinj; its consideration by the Con^-ress."

U . S . V, Great Northern Ite il-'ay Co., t?o7 U.S.

ikk, y^h; 15^.

See also U. S « ^? h issouri Pacif ic r.ail-'ay Co. ,

071-' TT c '^C.O 0~l'"

The legislative hie-tor;- of the KI2A revopls that the sponr;orshiD theieof
intended to ;:ive the President broad povers. An c::a-iination of the
record of the hearin.'-js before the House and Sena.te o:a the Act, of the
reports of the Senate Con::ittee o:a finance and the House Cornnittee on
T7a"s anc'. iieans and of the Conference f.eport discloses sone help.f\il
i:iforr.iatio:a. The lan:_uai2;e used 'o'j Senator 7a,yner of Isev Yorl:, vhen
acx.ressin£ the SenF.te on June 7> 1S33> lenf.s sone alo. to construction
of the Act, '^''ixe SenP.tor saio.:-

"But if any trp.c.e or inc^ustry crnnot or -'ill not cooperate in

the fornulation 0:" a voTontary code, the Fresicbent is authorized,

after pro^jer investi.^a.tions anc. hearinys, to prescribe a coc'.e in-

cludiny all the salutary anc"'. protective features of the voluntary ^

codes. Or if any trade or inc,\\str;' volun.tdrily arrives 2X sone of

the rectiirenents of a coc^.e anc"". ne "elects others, the President nay

in a proner n.anner prescri"be thes-.' others ancb include all in

p. yeneral code," (*)

(*) 77 Cong, rec, l-Io, 70, p. I^S^S
t 9844

-13G-

It -'ill oe o'')served that the Senator spohe o"" volun'-.r.-:;;- codes r.nc. of the_
■orotec vive features of such codes. In these respects he also clearl;'
spo]:e of codes forned under Section 3, (s-) on applica.tion of the industry.
Section 3 (a) contains provisions ••hich are "aalutar-- anc'. protective,"
ho'-eve;;, the Senator's tise o" the "ord "preTcrihe" fine's no op.sis there-
for in Eectio:! 3 i^) » ^i^e '?ord toes appear in Sections j (d) and 7 (c).
It '-"ould therefore appear that vrhen Senator 'Ja ;ner used the ''ords
nuoted above, he '-/as referring-; to Section 3 (^0 '"'h-sn spealrin^; of
voluntar;^ codes and to Section 3 C^"-) ''hen socahin': of prescrihcd codes.

The le,^;irlative co;v-ent rcardin." Section 10 (h) f'ivcs ■■:oro li'iit
upon the 'pOTer of mend. :ent:

(a) Ihe President had po'^er to .lodify or cancel
any action trhen lij hin:

"Section S (h) (") a-athori7.od the Prosidcnt
to ::odif r or cc'o.cel n:"i.y action tr':en hy hin
under the title." (Senator j'a-;ner, Ii.2.
5:65, paje S^.)

(h) The Presic'ent unfer Section 10 (h) had the
po "er to -lodii'y fruit" p "reorients:

"If codes, ajreenents, or licenses prove

faulty, the pc-rer is rcservec" to t]:.e I-ro"

si'-ent v:.\:.e:? Section 9 ("t)) to cancel

or Mod.ii7y an;- order, ap":;roval, license, ' • •

■j^U-le or reyalation issued under t'lis

title." (H. E. 130* (hpport o'" -the House

Co'i::ittee on 'Ja^s and ilcans.) {'op't 3«) '

"Section 9 {^) ";'rovideG as iie: etof ore
strted, for the' cancellation or :.:odifica-
tion of any orr^cr, a.:rovrl., lic:nsc, ixile,
or rculahion issxied under this title. "(**)
(ihid.U)

"The o"aes':ion that ^as raisec. a fe-- linutos

ago hy hr. Le "is — that is, ahout this de'^eyation

of authorit"- and a'jout the aclninistrator ■ —

is so inpoi-tant that I -ondered if you th.o"aght

that the hill itself, in its present for::,

covers ever;' thin' ; that -rould oe necessa:.y-

or -hether any further restrictions should

he offerer, as to the r.d^inistrator, or

■'hether anythin,-' vould ho s'Lvy'ested 'o'j you

r.lony that line." (ah-. Trear, Ihid.lll.)

(*) Section S (0) Irter hecr:..ie Section 10 (h)

(**) Sections $ (a) and 9 (h) I'.ter oeca-.e Sections 10(r) rrj_ 10 (h).

"Of cov.rsr I cc/.'i '-..ll v.nf.eL-;:tr:i('. -ov.r C5ncs:..-r;, CoPi.'^'reGs-
\pn; "but I till it; tar.t M'u-'.t ■ rf s ;-)UJj:osn'l,-- c.one to :i,"J;e
the po-'er .".a unrestrictec r.s josci'dr '".uri'i,-- tiiese on-
er.-jenc,"' (".r-s,. jecPr.Ka thiiYjs ciirnge f:-o-i L-..,/ to cV.y. "
(Senator ■jLvjn.er, I"jid. Ill)

(cl) A reference to the, ""in^ncc Co ■•^ittee hGrrrr.'iii in th"' b>.ivo,te
secriG to c'.isclose f. rather yointpc". que- ':ion or the ;; oner of
the President to r lend codes i;nd inf"ics.tet. t...;,t it "as the
intention to permit -^he Fresif.ent to anenf. codes -There the
puhlic interest rics hein/;; injured "by the continuance oi the
particular code,

"Senator La ZPollete: S3na.tor '.Tafjner, r"id ^'ou
rnd ;^'o\ir associates consider the advisaljilit^ of
conferring; poorer upon the President to anend .jr' '
revohe these codes of fair co .>.etition in cases
' i7here it ijas c'evionstrahle that the puhlic interest
~as heinfj injured ''jy their continuance?

"Sons.tor "Taf^hei-: 'That is ri;;lit in tlie rc't. He :.\p-/
:no6.ify, cancel, or ;"o anythi'.v to the order, "
(Eea,rin-s;,'s before the Cc:r.r^ttee on Pinanco, 'Jnited'
States Senate, 73rd Con,-:resr, 1 Ses' ion, G. 1712 and
E. P. 5755; ^0, 21.)

An analysis of the aoove; mentioned references' discloses that one of the
authors of this Act, •i\ile not i;:i'-'in;: a positive rns-.'er, :'e plied' in ?
vein to sui];.;'est that rjider Section 10 (h), the president do'e's have po"'er
to mend codes.. '-hen the'- a-^e detrin.ental to the puhlic interest. There
are other stat'enents in the le;'jislrtive' historj' -hich sho-r. that the
President has po'Ter to correct fault" codes and, lihe'-.'ise, a sta-te^ent
referrin; to Section 10 ('b) that anp ciction' could he trl'en.

It r.ay he ar.p.ied thr t the po-'cr conferred upon the President h;"
Section 3 (^'-) :~

"Tlie Presic ont nay, as 0. confltion of. his ap-.roval of any
such code, i'.iposL sr.ch conditions ( inclu-dinfj rccuirenents
for the nrliin,-'; of reports and the hee^;i"A:; of account?) "or
the protection 0..; ?,on^;"uj:3rs, co-.;petitor.s, enplpyees, and
others, anc. in furtherance o" the ■juhlic interes.t, ano may
'orovide such errce;. bions to and e:ce;:ptions f rq 1 thepprovi-
sions of s\ich coc^e, as the President in his discretion deevis
necessary to effcc.tua.te the olicy he:-ein declared,-"

is sufficient to 'ivc r "/0'"'er of a.'.ent'' lent. The. repetition of the -'ord
"ucy" ■'oeforc the -ord "provide" .-j'i.oo-s an iiitention that no ti;.:e coni-l,tion
s'.ioliIl- attach to or li'-'.it 'the po" 'or to, pjiend codes. Lir.:e"ise, there is
no state::ent thrt the iv os'ed provisions i.ri.st he 'ratified !)-■ the industry,
a-l-'".hou"h tho ori ;inal application for r code -ro.st he voluntarily suh-
nitted. It -'or.ld scon that the use of the -ore- "iposc" indicates thrt
the 00 'er to a. ^enc, a-s conferred cy Section 3 i^-) , '"?-s not tied to the
volj.intary fea.tures of the first oart of th-at Sect;.on,

qsUU

-123-

Section 10(b) is the safest part of the Act upon which to base
the power of amendment (*).

It may be reasoned that the po^'-ers contained in Section 10(a)
with respect to the prescrir,tion of rules o.nd re;5ulntions may be
invoked for use as a po'^cr of rmendraent. The reliance upon this
section should be predicated upon the contention that code pro-
visions are roles and reg-jilations (**). If this argument is proper,
then strength rould be given to the p-Dnlica.bility of Section 10(b)
in that this section expressly refers to the terras "rule and regu-
lation".

The voluntary nature of codes submitted under Section 3 (a)
caused discussion by some NRA. officials as to the power to amend
codes without adherence to this theory and -Dolicy of industrial or
trade volition. Some believed that no power existed whereby such
codes could be modified v-ithout the assent of the industry affected. (***)
Section 10(b) in part requires -

"Each a;-;reement, code of fair competition . •
shall contain an expressed provision to that
effect".

In other words, a mandatory expression of the power set forth in
Section 10(b) was required in each code of fair competition. All
codes contained such a provision, a typical one being:

"1. This Code and all the provisions thereof are ex-
pressly made subject to the right of the President, in
accordance with the provisions of subsection (b) of
Section 10 of the National Industrial Recorery Act,
from time to-, time to caacel or modify any order <

(*) One legal periodical takes it for grajited that the President
may modify or amend code provisions at will, irrespective of
whether or not the members of industry assent. "Except in
the Iron and Steel Industry, the codes do not purport to be
agreements between their members and in no case between mem-
bers and government . . . the fact that the President can
amend codes both before and after approval (citing Section
10(b)) recnforces this conclusion." 47 Harvard Law Heview,
100, Ivjov ember 1933. )

(**) , See NRA Legal Research Memorandum No. 68, June 29, 1934 -

Power of President to Amend AAA Codes Without Assent of the
Industry Affected.

(***) See NRA Legal Research Iv'eraorandura No. 68, supra - Also NRA
Legal Research I^emorandum No. X-297.

9844

-122-

o,_i3rovcl, license, rule, or reruletion issued under
Title I of said Act and specii'icc^ll;^ 'out \;itliOut
linitaticn, to tae rignt of t.ie President to cancel
or Modifv xiis approval of this Code or any conditions
inrcoscd "by I'iin upon his ap_.jroval thereof." (*)

The volxmtary inclusion of such a provision 'oy the sponsors of a code
under Section 3(a) v/ould infer ai assent to sv-hsequent e::ercj-se5. of the
general pov/ers set forth in Section 10(o).

Section C(a) peri.uts the President to

"ii.ipose such conditions . . . for the protection
of consuHers, competitors, employees and others

This form of exercise of the power of amendment vas the imposition of
a condition upon the order of approval of a code, either previously grant-
ed or to he issued in the future. The theory of this exercise of pov/er
seems to he in the nature of a "continuing condition", which attached to
the order of approval and coiild he exercised "oj the president at any
time (**). An example of this form of . aaendnent is found in Executive
Order 6711-A (llay 15, 1934) "vrhich states in the last par;igraph thereof -

"This order . . . shall operate c',s a condition upon any
previous orders approvini^ any code of fair competition
under Title I of the national Industrial Recovery Act".

It is interesting to note tnat this Executive Order also sets up rules
and regulations and a requirement that no provision of the code shall he
construed or applied as to viols,te the rules and regulations prescrihed
hy the order.

The various theories of constru-ing the existence in the Act of the
power of amenchmerit have h^en set forth ahove and it is the author's con-
clusion that the pov/ers contained in Section 10(h) are sufficient to in-
clude the power of amendi.ient of codes.

LI.ilTATIOHS UPOl^ POUEH OP AUMSuMT

The po\/er conferred hy the Act '.'as suhject to few limitations. The
purposes of this legislation necessarily required an amhit of wide ad-
ministrative discretion. This discretion with respect to the power of
amendment was e:>rpressed in various wa.ys in the Act, hut all referred to
the same limitation. Section 10(a) in part says -

(*) Article YIII, Code of Pair Competition for the Pleating, Stitch-
ing and Boni'.az and Hcnd Erahroiderj"- Industry.

(**) See ;i{A Legal Research Liemorandura iTo. 63, supra.

3844

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. nrccnsary to carry out the piorposes of this title

Section 3(c.) in pra-t stt tes -

1'. . lor tiie protection oi' co;?, jetitors, cons\i:.iers, em-
ployees r,nd otacrs and in f-arthorance of the putlic in-
terest ... as the President in his discretion deems
necessary to effectuate the policy herein declc.red. "

These limitations show that the po'7er of the President to amend codes,
v/ith two exceptions, v/r.s subject only to the requirement that the action
effectuate the policies of the Act, which were stated in Section 1 of the
Act.

It woxild seem that a limitation of a mandatory nat^ure upon this modi-
fying power of the president results from the provisions of Section 7(a)
of the Act, v/hich, among other thiMi'rcs, provides -

"Every code of fair competition, ag'reement, aiid license
approved, prescribed, or issued under this Title shall
contain the following conditions ..."

This language would appear to deny tjie rir;ht of tl^e President to substant-
ially modify any code provisions required to be i:icorporated by Section
7(a). A similar denial appears to have been imposed by Section 10(b) in-
sofs,r as aanendinents of code provisions incorporate the substance of
Section 10(b).

9844

ciiapti:h II

DIlFIiIITIOII AlID SCOP.: 0? TIIS TrJL .i Ai.iI]ITI): JEIJT

An amendMent , in the ordinary application ni tlie tern is -

I'Aij alteration or change for the tetter; correction of
a fault or of faults; reformation of life by quitting
vices.

"In public bodies; i.ny alteration raade or proposed to
be made in a bill or motion by adding, changing, sub-
stituting or oraitting.

"Law: Correction of en error in a writ or process." (*)

The legal d.efinition of the terra "ainondnent" is as follows:-

"Axnendnent in Legislation - An alteration or change
of something proposed in a bill or esta.blished as
law. Thus the Senate of the United Statds may amend
•raonejr-bills passed by tho House of Representatives,
but cajanot orif;inate such bills. The Constitution
of the United .States contains a provision for its
ainend:nent. (U. S. Constitution, Article 5)

"In practice - The correction, by allo\,'ance of the
court of an error committed, in the progress of a causCk .

"Amendments at common law, independently of anj-- statutory
provision on the .subject, are in e.ll cases in the dis-
cretion of the court, for the furtherance of justice.
Under statutes in modern practice, they are vex-y liberally
allowed in all formal and most substantial matters, either
without cost to the party auending, or upon such terms as
the court thiiUcs proper to order. (See Jeofaille)

"An amendment, where there is something to amend b-;-, may
be made in. a crininal as in a civil case. 12 Ad. & E.
217; Con , v. Parker , 2 Pid:. (iJass. ) 550." (**)

ITo mention of the term "ai'.iendmrnt" or "amend" is found in the Act, but
Section 10(b) uses the term "modify". The ordinary yaeaning of this term
is to alter or qualify. The word is synonymous with the term "amend"
(*** ) .

(*)" TJebster's l.'ev/ International Dictionary of the English Languag ,
Quarto Edition of the Herriam Scrie-j, 197.4; p. 69.

(**) Bouvier's Law Dictionary, Ha\'le!s Tliird Revision, Vol. 1, p. 187

(***) Roget's Thesaurus of English Uords and Phrases - iiawson, Inter-
national Edition.

9844

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The Arlvainistration reco,2;ni:3Gc. itt'. po-,;ei- to aiuend code provisions,
"but 'because of its ira:iedir.',to ccid .Ji'os'jiu-; concern over the codification
of industr-;-, no c-.ttewnt va.v. i.iauo to dofi;ie tue term "ajaenunent" {*).
The use of the teru I'liodification" finds its origin for liEA use in
Section 10(1'), such use rcferrini; to the oo^.-cr of aucnd-.ient (**). The
terms I'raodification" and "aincndnent" ■,7ere used interchs-ngealDly "by liEA
until Ivir^ 5, 19S4, at uhich tiue C-cn'ral Johnson, Administrator for In-
dustrial Recovery, hy Administr^itive Order :;-;:7, prescribed -

".. rules and renulations concerninf: sj:ienG:-!euts to,
modifications .. of, .. ap'^roved codes .."

The order defined the term "..lodif ication" as follous:-

"The term 'modification' shall include 'amendments'
and all rulings whereby a code is amended by adding
a provision thereto or chuu^iiK; or omitting any pro-
vision thereof".

The effect of this Administrative definition placed both the terra "modi-
fication" and "ainendr.ient" on the same, basis and incorporated the unof-
ficial accepted meaning,, at that time, of both terms; viz., changing" of
addition to, or omission of code provisions (***), This administrative
definition continued, but after the period of codification of industrjr
drev; to a close and the requirevients of code administrr^ticn became more
apparent, the popiilar use of the term "modification" gradually gave Wfy
to the use of the term "amendmOxit" rnd, on or about September 1, 1934,
(the date of the issuance of the Office Manual) administrative recogni-
tion of this change in the reference to the pov.'er. of ainendi-ient was nexle.
Part II, Paragraph 5000 of such Office i,iejiua.l defines the term "amend-
ment" as follows :-

"'Amendment', as applied to iTBA codes, means any
addition, deletion, or other change in 3.ny language
thereof".

Paragraph 5010 of such Part of the Of- ice Ilanual sts.tes:-

"To preserve uniformitj'- of usage, the terms 'modi-
fico.tion', 'siipilemcnt ' , 'revision', 'addition'
pn.d 'adjustment' ■..■ill not be used to describe
'amendments'". . ""

(*) It is to be noted that tne term "pnended" is used in the order
of ap "Toval of the code for the Shipbuilding a:id Shiprepairing
Industr;^-, Code Ho. 2, July 26, 1935; Paragrcph 12 of the order of
approval of the Cotton Textile Industry Code. Ho. 1, July 9, 1933
states "this approval is limited to the f oiir months period '>."ith
the 'right to asl: for modification at any time . . .".

(**) See Office Order Ho. 44 - ITovember 21, 1933, HBA files.

(***) Sec also l^A Office Order Ho. 75 - Liarch 26, 1934.

9844

'This annoiince ic T.t effected a uni:.'ci':it" of eizpression v;ith respect to the
tern "aiaendue-.t" i:nC. superseded - "c'.ll previous Off ice .Orders -".iid Iler.io-
randa, includinj-; -J-i.iir.iitrative Orders ano. i;::ecutive Orders of ge'ieral
application to i7-1A". (*)

Exar^iiiation of the 6.efinitio:i set. fortn in Acxiinistrative Order
X-27 sjid the Of- ice Majiub-l sho"./s a sinilarity in the scope of the tei'm
"amcnd'-ient" in tjic'u it refers to additions, deletions and chanf^es of a
code "provision" (as stated in Adr.iinistrative Order X-27) or code "loji^-
uage" (as stated in the Office I.Ianual.)

I'O other official aduinistrative definitions of the terra have "been
found and for purposes of this report the definition of the term "aiiend"
:ient" as set forth in the Office uanual, tof;ether uith the explanation
Trith respect to the terns "modification", "suppleuent ", "revision",
"addition" end "adjustment" T/ill o.pplj-.

(*) This Office litausd "as ordered op the O.irection of the Adjnin-
istrator and the order of issucu^ace thereof \7as signed ty G. A»
Lynch, the Administrative Officer.

S3-i4

-128-
CHAPTER III

DILEC-ATIOil 0? POUm TO APFHOVE OH DISAPPxlOVS
AIlCIIDkIS'TS

The terns of the Act autnorized the president to estahlish such
agencies, to accept the services of and to wtii.ize pedersd ofi'icers and
employees, to prescrihe their authorities, to delegate an3'- of his func-
tions and powers under the Title of the Act and to fix the compensation
of such officers, agents a.m enployees. It also authorized the appoint-.,
ment of officers and employees (*). In accordance v;ith this authority,
the president, on June 16, 1933, appointed Hugh S.'Johnson as Adminis-
trator for Industrial Recovery \nmer Title I of the Act and further
appointed a Special Industrial Recovery Board, the merahership of which
T/as the Secretary of Cor.imerce, as Chairman, the Attorney General, the
Secretary of the Interior, the Secretary of Agriculture, the Secretary
of Lahor, the Director of the Budget, the Administrator for Industrial
Recovery and the Chairman of the Federal Trade Cor.imission. The order
of appointment authorized General Johnson to appoint the necessary per-
sonnel for the period of thirty (30) de^ys and to conduct the work aiith-
orized under Title I of the Act (**). One month later, the President
continued the appointment of Hugh S. Johnson as Administrator for In-
dustrial Recover^r and authorized him, subject to the general approval
of the Special Industrial Recover}- Boexd, to exercise the functions
invested in the President under Title I of the Act, except the approval
of codes, making of agreements, issuojice of licenses or exercise of the
power conferred by Sections 3(e), 6(c), 8(h), .9 and.. 10. The., limitations of
this order reserved the po\;er of amendiient to the-President. Subsequent
delegations of po;;er of amendment were made relating to various phases
of iJRA codes end for purposes of orderly treatment they '.Till be separ-
ately set forth {***)'.

PRLSIDEIE'S REii:i.PLOri.:EiIT AGEEEI.IB1IT

The difficulties of im^^adiate codification of industry resulted
in the initiation of the President's Reemployment Agreement, which was
a general of f er -to employers to cooperate \7ith the President in the pur-
poses of the Act (**=!=*).

(*) Sections 2(a) end 2(b), ^~

{**) See Executive Order 5173 - June 16, 1S33, I'IRA files.

(***) It should be noted ths.t the powers ejid the membership of the

Special Industrial Recovery Board were transferred to the IJationaL
Emergency Council, See Executive Order ITo. 6513, IIRA files.

(****) See national Recovery Adj-.iinistration Bulletins ITo. 1, 3 and 4 -
1933.

9844

-129-

Tlie PHA ic":es no nCiition of anend:.ents or i.iodiiicftions thereof but Pai-?^
graph 14 peruits applicn.tions for stays pending investigation of individual
cases restating in hardship. The administration of the PEA and the appli-
cations received raider parci^raph 14 showed need for certain amendments of
particular provisions of the PEA v;ith respect to certain employers or
groups subject thereto. Accordingly, on ilovenher 22, 1533, the President
authorized the Adiainistrator for Industrial Hccovery -

I'to Malre nodifications of .. srid agreei.ients, or an3'-
similar agreements here.:>i'ter entered into or aporoved
"by me hy E::ecutive Order, as he msy, after investiga^
tion, .find necess^arj'- in p;a-ticulf.r insts^-nces in order
to avoid undue hardship". (*)

This grant of authority to aiacnd eigreements related only to the PEA and
the S;:ecutive Order expresoly excepted the pov/er of amendment of codes of
fair competition.

One phase of PEA '.'hich in some Trays constituted amenczjchts thereof,
should "be mentioned at this point. Paragraph 13 provides: -

"This agreement shall cease upon approval by the Presi-
dent of a code to nhicli the rmdersigned is subject; or,
if the ilEA so elects, upon submission of a code to
v.h.ich the undersigned is subject, pjid substitution of any
of its provisions for any of the terms of this agree;.ient. "

This section caused a nu.iber of substituted T/a^ge and hour provisions of the
PEA,i7hich vere issued by permission of the VHk, the effect of r/hich was to
substitute certain provisions of proposed codes of a nuiber of trades and
industries for certain provisions of the PEA. The actual result of these
substitutions was amend],:ents of the PEA insofar as it affected and applied
to various members of industries cjid trades •./ho had submitted proposed codes
ojid also obtained substituted provisions. The Administrative detail re-
la-tive to the issuance of these substituted provisions was delegated to
the PEA Policy Board, although prior to that time petitions for substitu-
tions had been handled b^^ the "^articula^r depaVt^-Q-.-^inistrator (*=^). ilo
specific delegation of this power was made "oj the president, although the
terms of Paragraph 13 of the PEA indicate the delegation of power to the
lIEiA to determine whether or not a substitution should be made. These sub-
stituted provisions were issued on October 14, 1S33 b^^ the AdiJinistrator
with the approval of the chairman of the Special Industrial Eecover^'- Board.
(***) These acts of ai-iendment of the PPJl, even if not specifically aAith-
orized by the President, were subseo^uently ratified oy him (****).

(*) Ercecxitive Order "Jo. 6443, llovember 22, 1C33, ITEA liles. -
(**) See Office Order I'o. 18, Axi^ust 7, 1^:53, ITEA files.
(***) See i;ational Eecovery Adrainistration 3-jJ.letin To. 3.
(****) See Ei:ecutive Order ilo. 6515, Dece-.foer IS, li:33, IIRA files.

9844

-130-

The Aduinisti-'etor retained the -povrrr to' cnerA the PRA and the in~
vestigatio:-! has disclosed no other specific ad;.iinistrativo delegations
of such po^,■•er or imj other enlarjC^emerts thereon uy Preciidential order,

CODES UlIDER SBCTIOi: '::(a)

As stated ahove, the President retained the pov:er of amendrient of
codes at the tirae of his original delegaticns of po':er to the Adrainistrator,
hov/ever, specific delegation of the pov/er of sjaendnent V7as nade to the Ad-
ministrator for Industrial Recovery onDecemlDer 30, 1933 (*), This auth-
ority uas enlarged upon hy the terms of Executive Order 2To. 6500-A,
PelDruary 8, 1934, in v/hich the President authorized the Administro-tor for
Industrial Recovery to prescri'be rules end reg-alations governing aj.iend:.ients
to or modifications of codes of fair competition.

A specific delegation of pov/er relating to codes is fov.nd in Executive
Order ijo, 675G-A, Jiine 28, 1934, in v'hich tne president offered to enter
into an agreei/ient v/ith members of certain service trades to "be specified
"by the Adi-iinistrator upon certain conditions. The order authorized the
Administrator to supplement the provisions of the Executive Order "by such
rules and regulations cJid anendiuents, as the Administrator in his opinion
determined '.vould efiectxiate the pui'poses of the Order and the Act.

JO I ITT AAA iuIS IiaA CODES

The purposes of the iTIRA were industrial recovery and reemployment
of lahor engaged therein. The Agricult-aral Adjustment Administration was
concerned ^vith the rehabilitation of agriculture and under the terms of the
Agricultural Adjustment Act '(**). ^lie Secretary of AfTiculture nas appoint-
ed as Adininistrcitor of that Act,

Some inaustries and trades are closel;'- allied T;ith agricultiire aiid on
June 26, 193o, the President delegated to the Secretary of Agriculture all
Of the functions and voxiers, v/ith certain limitations, conferred by Title I
of the Act with respect to ind^istries end trades engaged particularly in
the handling of milk end its -oroducts and all foods and foodstuffs. The
delegation vias subject to the reservation of the pov/er in the President to
approve or disapprove provisions of any such code (***), Difficulties of
this joint administration required some segregation of the xiov/er and on
January 8, 1934, the President trEiisf erred the po\7ers theretofore delegated
to the Secretary of Agriculture to the Administrator for Industrial Re-i
covery insofar as the exercise of these porers affected certain indxistries
v/hich were stated in the order and which were to be the subject of sub-
seqiient agreement between the Secretary of Aigricu.lture and the Administra.tor
for IndListria.1 Recovery, Enlargement of these powers theretofore delegated
to the Secretaa-y of Agricultai-e and the Administrator for Industrial Re-

(*) Scie Executive Order ilo. G545-A, Decn:.iber 30, 1933, iiRA files.

(**) Public Resolution llo, 10, 73d Congress.

(***) See Executive Order IJo. 6182, J-me 26, 1933; Sxecxitive Order
No. 6207, July 21, 1933 reaffirmed this delegation, llRA files.

-131-

cover7 r/r,s :r.de 'by the President in Executive Order ITo. 5764, J-uiae 2S ,
1934, Td7 'Jhich the approval of any anendjient or -.nodif ication of any pro-
vision or provisions of any code of fair competition v/as to "be exercised
"by the particular officer v/ith respect to those code provisions which
such particular officer was authorized to oAninister. No record of any
further Presidentic-l delegations of autliority with respect to JLAA-IKA
codes has oeen found.

Cl^IEATIOl? Ox^ I-IATIQl^AL IIISUSTEIAIj RECOVERY BOATJ)

A chsjige in the form of the Aduinistrc.tive Agency was nade 'by the
President v;hen he created the I'ational Industria,l Recovery Board, sub-
sequent to the resignation of General Johnson as Administrator for In-
dustrial Recovery (*). The provisions of this Executive Order axithorized
the Board to exercise all of the po'.vers theretofore conferred hy Exec^ative
Orders upon the Adi-iinistrator for Industrial Recovery. This transfer of
power necessarily'- carried the power of aaenduent, the record of delega^
tion of which is set forth aoove.

DELEC-ATIOl^ OE POTTER TO LESSER Or?IGIALS

The po'./er of approval of ej.iendnients of codes wt\s exercised "by the
President until the time of delegation set forth in E^rcecutive Order IIo.
6543-A. This power was then exercised "03;- the A(5-iainistrator as affirmed
by Paragraph III, Section 3 of Aduinistrative Order ITo. X-27, May 5, 1S34.
Diiring the early pert of 1S34 the nunher of ainendnents submitted to ERA
began to increase and further delegation of the po^7er to ajaejid seened nec-
essarj!-, but the power of final ruling on these natters was retained by
the Ac'i.iinistrator (**). On April 9, 1954, the Administrator created the
office of Ad;ninistrative Officer end designated hira to exercise the duties
which woTild not reo^uire the Adiainistrator' s personal attention, including
final approval in the name of the Acaninistrator of -

".. codes and other dociLients requiring the Ad:ninistra,tor' s
8.ction .." (***)

The ifetional Industrial F;.ecovery Eoard, after its organization,
authorized the Adiainistrative Officer, siib.ject to its general direction,
to execute papers and documents and to exercise the power of isouance of
orders of approval, or rules and reg-ulations (****).

TERRITORIAL ADI.IIIIISTRATORS

The formulation, pro:.Tulgation and ac'Lministre.tion of codes in the
territories of the United States presented specific problems as to the
method of exercise of the po'.rer of aiaencjaent. ITo delegation of this

(=*=) ExecL.tive Order Eo. 535G, Septe.b.er 27, 1954, I'liA files.

(**) See Of.; ice Order xlo. 75, ERA files.

(***) Office Order ITo. 85, iIRA files.

(****) See Administrative Order X-93, September 28, 1934 and Aojninistrative
Order ilo. X-107, "Jo v ember 1, 1934, .. EA files.

9844

-132-

loouer '.vas .lade to' Territorial Aclninistrators, ?,ltho-u£;h. certain ri3.1es
and regulations "./ere set up wliereby tnese territorial at'jnin istratoru were
required to do certain acts, nostly procedura.1, prior to the actual
approval of an amencL.ient of a territorirl code (*).

IIEG-ICILA.L OriTICES

Durir^ the latter part of the year 1C54, the Administration in-
stituted a decentralization of the adi-iinistrative pov.er './ith cjn. at-
tendant delegation of various phases of the au-tiiority conferred "by
the Act. Regional offices were established under the direction of a
Regional Director and some delegation to these Regional Directors of
the pover to auend codes v/as contemplated, out never acttially v/as
inade (**).

LIi.:iTATIG'i'IS UPOII SSEIICISE OF FOT/ai TO Ai-SrlD

Through the vehicle of codes, the Aduinistration frou tiiae to tiue
delegated various powers to code authorities; e.g., collection of re-
ports, investigation of complaints, etc. ITo exrjxole of unqup,lified de-
legation to code authorities of the povrer to amend has been found, but
various t^^pes of limitations ur)on the exercise of the poTrer by ilEA "'ere
set forth in certain codes. Soue code provisions required the prior ap-
proval of an f-jnendaent by a majority' or fixed percentrge of aji industry
or trade; other cbdes req.uired the approval of the proposed amendment by
the code authority (***). other t;'-pes of linitations were included in
the codes; e.g., the presentation of the codes was not an assent to any
future a.mendj:ient s . The e::tent of the investigation in connection with
these tj'-pes of code provisions has been very United, altho^igh questions
do arise as to the propriet;r of such delegation or lir.ita„tion upon, the
exercise of governmental poiTer and also the legal question of the effect
of such a limitation upon the broad pov.'ar set forth in the Act.

(*) See Administrative Order ITq. X-60, July 2, 1534; Office Order
ro. 104, Ji.ay 14, 1934, ITU. files.

(**) See IvRA Coirolio,nce Division Field Letter IJo. ISO, iIRA files.

(***) See the Iron ohd Steel Code ITo. 11, Article XII, Section 1, Codes
of Fair Competition.

9844

-133-

]THGDS OF EJCiSlCISi: Or PO".:rP- CR AliEi'n.IEUT

The pov/er of anend;.ient is evidencec. in scvei'al '.Tays - (l) general
E::ectitive or Administrative Order, (2) order of approval of specific
amendment, (3) conditional order of ap'iroval. (Strictly speaking this
T/as not "ai.iendiaent" since the code r/as onlj'- p.pprovca in consideration
of the uodification. )

ProH time to time, legal and policy requirements necessitated the
issuance of an Errec.itive or Administrative Order wheretiy all codes a-o-
proved or to he approved were amended to conform to the provisions end
requirements of the psrticf-lnr E:-:ecutive Order (*). Likeirise, Executive
and Administrative Ordersv.'ere is-ued; \/hich, although in the form of an
administrative interpretation, may in sono cases have had the effect of
a general amendment (**). The usual form of these orders, which were in
the nature of interpretstions, i s as follov;s:

".. no provision of any Code of Fair Competition, egree-
;:ient, or license, which he.s he?:etofore "been or may here-
after he approved, prescrihed or ispued pursuant to said
Title of" said Act shall he so construed or applied a,s to
violate the following rules and regulations ..." (***)

ITo further consideration of the ■.■ethod of general amendment has been made
for the purposes of this report "oecause this method of administrative action
is morei.of an exercise of po\7ers of interpretation, and as such, will he
treated in the study on interpretation:;.

(*) E:;ecutive Order Ko, 546-1-, llovemher 27, 1S33, prescrihed rules
and reg-alations '.hich had the effect of ainendiients of any in-
consistent provisions relating to conmercicil hrihery provisions.
Executive Order ITo. 5479, Decemher 7, 1933, providing for the
suhmission of sto,tistical information hy persons subject to codes
cj::ended every code of fair competition theretofore approved and
imposed a condition in the order of a.pproval of s. code thereafter
approved. See Administrative Order ITo, X-51, Juiie 15, 1934 for
an example of an Ad:.iinistrative Order of general amendjaent, IIRA
files.

(*=^) Executive Order llo. 6G06-A, February 17, 1S34; Executive Order
llo. D606-F, February 17, 1S34; Executive Order ilo. 6711-A, May
15, 1134, IIEA files.

(***) Executive Order ITo. oGOG-F, su'ora.

^844

-134-

An order of approval o:? a specific ancnd-ient v.'as the nost coi.imon
nethod of e::ercise of this adninistrative por/er, Usvially an pjaendraent
T/as proposed 'b;'- an industry group and after hearing and consideration by '
imk, it xieis 8,pproved by an Ac-iinistrative Order r relating to the particular
anendi.ient (*). A method of raouif icr..tion (erroneously called anendnent)
of proposed codes used frequently by i,7vA was the conditional order of ap-
proval. This forn of aduinistrative action is evidencea in the order of
approval of c. code. Such order of approva,l sets forth the adoption and
ap ^rov£.l of the code, but conditions approval upon the inclusion of a new
section in the code not originally subaitted b;- the sponsors thereof, or
a aodiiication of certain language of the provision contained in the code
as subaitted or the eli-inination of a. particuJ-ar provision (**).

(*) See Code ilo. 31S, Anendnent .IJo. 1; Code To. 84, Ai.iencunent I'^o. 1;
Code ITo. 131, Aiaendraent ITo. 1.

(**) See order of approval of the Boot a^id Shoe ilanufa-cturing Industry
Code, ilo. 44, October 3, 1933 for a.n exa-mple of an elimination
of a, portion of the Code; See order of approval of the Umbrella
Llanufacturing Code ilo. 51, October 9, 1933, for an example of an
addition of a provision; See order of a.pproval of the Artifical
Linb Llanufacturing Industry Code V.o. 514, Aug-ast 23, 1954, for
exarjole of a change in the provisions of e code.

SS44

•135-

■ ■ ^ ■. CEAPTia V

AlTAIiYSIs'oP AL Elli)i.S'TS Qg CODES - TxPg3

07 CODE pi.QV'ioiGJS a:j^±egt ed

Investigation df the records relative to auenu:nents has resulted
in a compilation of all of the amenc^ients approved fron J'lne 16, 1C33
to uay 2, 1S35.- The bulk of fcie' compilation refers to specific amend-
ments of particular codes dtA an attempt has "been Made to determine v/hat
amends.ients vere ap'oroved, rrhat tj^es of code provisions '.vere aiiiended, what
types 01 code provisions ivere adf.ed to or deleted from codes. Some ef-
fort has been made to stuc^- the .effects of such araendi.ients upon the code
structure and vdiat purposes v/ere' sought or a.ccomplished by particular
amenc"j.ients. The author wt-.s able to ezcer.ine only labor and code authority
amendments in the last mentioned phase of the stud^^. The v/riter has 'lieA
no opportunity to 3,nalyn;e, the purposes c::).d. effects of a:yjnd:ients of trade
practice provisions.

Ai,EKJLiE;ITS-AI'irEGTIi;G- APPLIGATIOl: GIT TKS CODE'

One of the f irst 'pro.blems confronting .TA in the codification of
industry was the correct ^definition of i.idustrj?- and the elimination of
the troublesome mattery' of LUiltiple coverage, overlapoiiis industry de-
finition, classification. and other, questions. relative to the jurisdiction
of the code insofar a-s .the industry prodacts or activities thereto v/ere
concerned. One method of solution waa avaendment of the definition of the
particular industry.'; .or . trade, oi' /.leiiber thereof. In soiio cases, the scope
of the code vas enlarged and in others it was limited. The investigation
disclosed tnat s i'xty- seven (67 )■ codes had been amended, either as to the
definition of the industry'- or trado,,,- or definition of the member of the
industry or trade',' or 'products of the indxistry or trade-. The following
tabulation lists the names of th.e various codes so amended end the tj^e
of pxiend lent:

i:Ai.IE or IPDUSTR;

Ai.iEi:Di.n:r?i:
':ri.iBER./

PROVISIOiT

Al.IEiiDED

10.
11.
12.
13.
14.
15.

Advertising Specialty
Air Transport
BcJcing

Ban].: Instrument llfg.
Beauty & Bc.rbcr Shop .
Mechanical Eo^uipi.ient
Bedding llfg.

Beverage ' Dispensing Equip .
Boiler i.Ifg.
Builder's Supplies
Candle mfg.

Canning & Packing l.Iachinerj
Canvas Stitched Belt
Cast Iron Soil pipe
Chinaware d Porcelain Ufg.
CO;.i iercial Eef ri,',-err„tor

65-1,
111-3
445-2
273

236-2

219-2

334-3

33-1

302-1
75-1

422-1
13-3

126-3

131-1

Definition of Industry ■
Ha\.'ai'i included in definition
Definition of chain store balcer
Change in definition

Definition of Indastr3'-

Definition

Definitions

Definition

9844

-136-

16, Concrete Masonry

17, Construction Machinery

18. Cork

19. Cotton Garment

20. Cotton Textile

21.
22.
23,
24.

25.

26.
27.

29,

30,
31,

32.
33,
34.
35.

Dress Mfg,

Earthenware Mfg,

Farm Equipment

Fuller's Earth Producing &
Marketing

Funeral Supply

Fur Dealing Trade

Furniture & Floor Wax &
Polish

Hosiery

Industrial Supplies ac Dis-
tributors Trade

Knitted Outerwear

Knitting, Braiding

Legitimate Theater

Lime Industry

Luggage <3c Fancy Leather Goods

Lumber & Timber Products

36. Metallic Wall Structure

37, Millinery

38. Millinery & Dress Trimming

Braid & Textile

39, Musical Merchandise

40. Needlework Ind. Puerto Rico -174-2

41, Nonferrous Hot feter Tank Mfg. C4-N-1

133-2

Definition

223-1

Definition

199-1

Definition

118-1

Definition

118-4

Addition to definition

118-8

Definition (cotton wash dresse

1-1

Definitions

1-2

Definitions

64-8

Definition

322-2

Definition

39-2

Definition

356-1

Definition

90-3

Definitions

381-2

Definition

224-1

Definition

16-3

Definition

61-3

New definition

164^2

Definition

32-1

Definition

8-1

Definition

31-2

Definitions (New Code)

42-1

Definition

9-8

Definition

9-13

Definition

9-19

Definition

9-32

Definition

84-A-l

Definition

151-2

Definition

69-2

Definition

209-1

Additions to definitions of

42.

Novelty Ciartain, Draperies,

etc, 79-1

43,

Oxy-Acetylene

155-1

44,

Packaging Machinery

7S-2

45,

Paint, Varnish & Lacquer

71-1

46,

Pl-umbing Fixtures

204-3

47.

Print Roller & Print Block

368-2

48,

Prison Equipment

84-Ml~l

49.

Railway Car Building

285-1

50,

Rayon & Synthetic Yarn

Producing

14-1

51.

Retail Trade

60-3

52,

River & Harbor Improvement

■434-1

53,

Road Machinery

68-1

54,

Salt Producing

20-2

55,

Shipbuilding

2-2 .

56, Shoe & Leather Finish
9844

184-1

industry
Definition (e?cports)
Change in definition of

industry
Definition
Definitions
Definition
Definition

Definition . ■>■

Definition
New definition
Definition

\. ■
Definitions
Definition.
Definition
Definition
Definition
Changing definition to exclude

boatbuilding
Definition

-137-

57. Shovel, Dragline & Crane-' '■'■■■•• 102-3 definition

58. Soap & Glycerine Mfgk- • . . 83-1 Defiflitipn _

59. Steel Tubular & Firebox '• 62t-1.' '. '. Change in definition of

..'.'.'.. . products ■ '

60. Tag Industry 249-1 Definition of member

61. Tanning Extract 37-^1 Definition

62. Textile Processing 235-4 Definition

63. Upholstery & Drapery Textile .125-1' Definition of member of

Industry deleted

64. Warm Air Eegister 472-1 . Definition

65. Wholesale Food & Grocery ■ .

Trade •• :i9G-3 Definition

66. Wood Plug 115-2 . . Definition

67. Wool Textile 2-1. Definitions

Other types of the definitions. set forth in. the code were made subjects
of amendments. Such matters -as definitions of subdivisions of industries
or trades, products, types of employers and employees, geograiDhical sec-
tions were submitted for Amf5.udraent. The fol,lo\tJng .tabulation. _
shows the tj'pes of definitions amended and the number thereof:

DEFINITION

Industry ; '. .

Member of industry. ......_ '..".. .'.

Subdivisions of industry.......'....,.'.

Products ■ '..'.'.'.'.

Employer '.'.'.'.'.'.

Employee '....'.'..

Skilled employee. .... • . .

Territorial subdivisions of industry

Customer. . . ^ .,

Geographical area. »

NO. OF .'AI-.ffiM)M-BNT5

17
, 30

, • • 10

, ■ 5

LABOR PROVISIONS

All types of labor provisions were submitted to amendment. In* ad-
dition, the attempts of N.R.A, to revise codes so as to bring them under
the then existent policy resulted in additions of a number of labor pro-
visions which incorporated such labor policy. The codes ap"oroved in the
early days of N.R.A. were, in many cases, sketchy. Administrative exper-
ience with the enforcement of such labor provisions prompted revisions
and additions of various types of labor provisionso- In some cases con-
ditions in the parti,cylar industry resulted in inequitable situations,
causing either an increase or decrease of the maximum hour provisions
with an occasional attendant change in the minimum wage provisions. The
following tabulations disclose the labor provisions amended and the num-
.ber of amendments relating to such provisions:

HOLIR PROVISIOiVlS

9844

Normal maximum hours .... I 54

Overtime hours 13

Normal day period 5

Normal week period 8

Maximum hours for watchmen & .firemen . 14

Maximum hour exception for emergencies,.,, 2

-138-

Maximum hours - Skilled help, 11

Exemptions. 1

Salesmen and Executives,..-.... 1

Female 1

WAGE PROVISIONS

Normal minimum wages 35

Overtime wages 5

Skilled wages 11

Apprentice wages 5

Learners wages 6

Handicapped persons 4

Piece rate 9

Wage adjustment above minimum. 12

Sex wage differentials 8

Geographical wage differentials ; . 20

•. GENERAL LABOR PROVISIONS

Child labor '. 9

Home work 7

Safety & health standards 26

Posting labor provisions............ 19

Handicapped workers ■.'.'.'..... 18

Method of payment of wages. ..'.,'... 4

Dismissal clause .....'....'. 1

Hazardous occupations .■.'.. 7 _ .

All of the various types of labor ameridments set. forth in the
above tabulation were not changes in 'the' wording of existing p.rpyi- ....
sions. All codes contained normal minimum' wage and maximum .h.o.ur provi-
sions, and an amendment of these provisions represented a change in the
wording thereof. In a few cases deletions of- existing provisions were
made while a number of amendments were additions to the existing pro-
visions. Most such additions were general labor provisions relating
to safety and health standards, requirement of posting of labor provi-
sions and provisions for handicapped workers. In. some cases, maximum
hour and minimum wage provisions were added for apprentice or skilled
help,

HOUR Aim WAGE PROVISIONS

The investigation of labor provisions has resulted in a compilation'
of the codes, the minifnum wage provisions of #iich were amended up to
May 2, 1935, An analysis of the original code provision and the amended
provision- was made to determine the effect of the amendment upon the
original provision of the code as fo all phases of minimum wage provisions.
A similar analysis was made with respect to maximum hour provisions
and the various compilations hereinbelow set forth are the result of
such analysis and represent all changes, deletions and additions to
minimum wage and maximum hour code' provision's as approved up to M=3.y 2,
1935. ^ .... '".

The following list shows the' Various codes which were amended as to

minimum wage provisions and likewise,, sets forth the type of provision
amended: - - •

9844

-139-

NAi.n: or jOds

1. Artificial Flover & Tccther

2, Artifici-1 Limb
5, BalciniV

4, Bitwninous Coal

5. Blouse Sc Skirt kfg»

6. Builders Supplies

7. Can Mfg.

8. Crzinin.g

9. Cast Iron Soil Pipe

10, ChinaT/are & Porcjlain Lifi:;,

11. Coat & Suit

12, Concrete Masonry

13. Cotton G-anaent

14. Cotton Textile

15. Dresn Mf g, '

16. I?loor & Uall Clay Tile Mf:.;,

17. Presli TJater Pearl Button
13, Z?unGrcl Service

19, jTur Dre rising & xur Dyeing

20, Graphic Arts

21, Knitting, Braiding, etc,

22, Leather

23, Le:_,itimate Theater

24, Light Sevring, Except Garments

25, Lime Industry

26, Lumber cjid Timter

27, liacaroni

28, i.ien's Clothing

29, Gf.rter, Suspender & Belt

30, Millinery

31, Paper & Pulp

32, Peanut 3u.tter

33, 2s,ilrra7 Car Building

34, Hefractories

35, rietail Toed & Grocery
9844

AJ-lEIDiViEKT
^TUlvil-'-ER

29-1
514-1
445-3 snd

24-1

24-2

24-3
194-2

37-2
152-i

446-4

18-1

18-3

126-5

5-1

5-2

133-2
118-1

118-7

?.nd 3

1-1

64-5

92-2

31D-1

384-3

lGl-5

287-5 a.nd 8
32-1
21-2
8-1
226-3
31-2
9-1,3,7,
9,10,17,21
234-3
15-2

94-2
151-2
120-3
378-1
285-2
168-1

182-3

PROVISION

MIENBED

Wage s

Wages for apprentices

Wages, special ein^jloyces,

adjustment
Minimum v.'age scale
Nev basic wage scaD.e
Wage rpotes for District " G"
Exemptions from minimum wage
WaF':e s
Territories & possessions

wage district
Exceptions to deductions of
prages, minimum wage for
Havaii District.
G-eogra.TDhic wage differentials
Wage adjustment above minimum
Equal pay for ^^omen
Wages (Geographical district)
jjcw Geographical wage dis- ,
trict, vage provision for all
cla.sses of employees, female
wage differential
Wages, minimum wage.
Wages on certain tj^pes of .

g?^rm.ents
Minimum wage diff erenti.-ls;
wages for employees.
Wages; above minimum
Wage district
Wa,ge district
Wage 3.djustments
Wage (guneral provisions)
Wage s
Wage s
Wages

Wage adjustment above -linimum
Wage s

Wages of learners *

Wa^ges, adjustment

Wage s

Wage differentials

Wages on certain types of

ga.nnents
Wages of apprentices
Wages

Wage provisions
Wage adjustments above minimum
Wage 3.djustments
Wage provisions; adjustment

above minimum.
Wages

-14C-

nAuH cr co":g

36. 2±:i^ Trcvolcr hf^.

37. Se.CCle- iufg.

38. Shi' 'liuildiiig

39. Stracturcl Cl?y Procoictr

40. iranr-^p.rent M?.terialc Con-

verting^

41. V:?.!! Paper h'lf^.

4?. 71iOlGs-''.lc Food .': G-rocery
4.1. '''holopplc Toljp.cco
44. V'recl'i'.i-" .■. Salva^je

A list relating, to hours, s
ment'-- of ninim'om va=,e "orovisions,

NAivi:: oz coDz

rui.ii?:

017-1
4o-l

2—"
12 "■'-1

.382-'5
19-1
196-/
462-1
:'1S-1

PSOVISIOIT

Ai^iiynp

iviinim'uiii v-?.^g

GeOt-,ra-.ihical va^e differ-
enti?ls; vrages for v-orien.
Wage adjustment
Mod. of G'^0£,ra;oiiicai -::^.^e
District

Kevv' wa^.e ;orovisions
Equal pay for women
Payment of w--;^es
Wage rates
Wa^-es

imil?r to the for3^,oi:
if as follo-'s:

list as to a;:vrMd—

1. AdYei-tic.-i-.i_^ S-ooci^lty

2. Art !"eedle'-^or''.c

3. Ai'tificial rioi:cr c; Feather

4. Artificial Lirnb

5. Autonojile Mfg.

6. Automotive Farts C-. 3quroment

iif ,1 .

7. Ba]-i:i: Indurtry

8. Bever-a-^e Dis'oensiag Hcuip,

9. Bit\v.ii::Lou£ Coal

10. BuilJcrr Su— olies

11. Car.t Ii'o:: Soil Pipe

12. Coat c, Stiit

13. Concrete ..asonry

14. Cotton &:^::ment

15. Cotton Te::tile

16. Jferthsnrare Lfg.

17. Slectrot:--in£, ■ c- Stcreo-

t:"i-\.

18. Faiv.i "Jf -ointment

AkZi-JBi.iZi

) ±

■TY?-;s ::

r-FCVISIOlTS

iTUiZF-

—

65-1

Hours

335-2

Hours

29-1

Hours

ol4-l

Hours

17-2

Hours

10^-1

44.J-.J

34-1

37-2

18-1

5-1

133-2

118-7

1-1

1-2

•322-"

179-1

39-2

Hours - orocessin^, c,
l'.iaintenance e.uTlo5''ee£ ,
office h s^ilorie. receiv
los<- than $'':3. ^ •■■e<=!:.
Hour's for P9mi-ha'i''ica"-'"?

em">loyees
Hour-exera-'itions for sale

men c: executives; e;;ie

gencjf cre^.-s
Hours-7 hour-5 day '■ee'-;
Hours
Hours

Hours V

Hours for watchmen
Hours - mfg. employees
Hours of labor, machine '.
Hours of outside eui loj'e

£ cloaners
Limitin: finiv-hint^ rarchi-

to tvo 40 hr. shifts'
Hours

i,.-' ri.;Ta . noi\rs not to 'oe

Co: .r-:.f' ercd minimuj?.
Hotir"^ "or vatchjiien ;., firemen;

e.'tce^tion to maxi-nm. h.rs.

-141-

Mm~ or coi

TYP-S CF IROVISIO'TS

19. Fimci-t.l D'CToly

20 . Fur D r e s c i n£, & Dy e i n^:

21. GlaGG Container

22. Gra-ohic ;,rts

23. Hair c. Jvte Folt

24. Hosiery

2o. ?:cus Tiiolc Ice Eefritjorator
26. Enitie'"'. Outerv:ear

27. Knittin; , JBraidin^x,, etc.

28. Lrce i.ifi;..

29. Leather

30. Lc;;_,itim?,te Theater

31. Lirno I:aduGtry
3Ij. Lii-Mjcr c Timoer •

33. l.i?."-\:?.ne&e Industry

34. Millinery

35. Motion Picture

36. Lru-tvr.l Saving,? Ban'cs

37. Oyster Shell Crushers

38. Oxy-Acetylene

39. Paint, Varnish & lacquer

40. Photo_ra-3.hic & Photo

Finishing

41. P.eiractories

4J. F.etail Food, d Grocery

43. So tail Trade

44. _-dni^ Traveler

45. P.o'oc c; Allied Product;

46. S^Adlery Lf; .

47. Snr-'ouilJin,

48. Sillr Tc::tilu , •

49. Tn::tile ?.a ,

50. Textile Print Poller

Ln^, raving

90-1

161-1

Hours for on^ineerr,, fire-
men, outside delivery r.ien,
emergency renair crev/s

Hours for working in fancy
dressirt, and raljuit c.:.v-

isions. Deleted i.i a.iaeiid-

rnent no, 6.

36-1

Hours, iDasic & for ■..•atc/men

287-2 & 8

Hours; aaximum hr. 3r:ce-.tions

■ -73-1

Hours

16-1 & 2

Machine hours

16-3

Hours ("oroductive) , "j?i.ic

uouio and e-ce'otio-.s

18r^-2

Ho"urs

164-2

Hour' ; or sic, of en_:ins^rs.

i"^.tch ;en; exenTntio'^.s;

linit-^tions of

3'i-l

Hour'^

fi-3

Hoi'.,.r''; I.fe"imum & ma.c.:.i:ie

21-1

Hourr for s-necial £,rou:;s

of '^orl'ers

8-1

Hours

31-2

Hours (general Cc exe:ntions)

9-11

Allov.rable hours oi o"- sration

'42^-1

Hourc, hoif.t men, pvjuj men

ljl-2

Hours (^eneral)

124-4

Hourv

o2-l

Old hotirs deleted for nep

452-1

Hours

135-1

Hours

71-1

Hou.rs

362-2

Hours

168-1

Basic hours

182—7

60-3
60-8

51 7-1

211-1
45-1

43-1
27-1

524-2

Hours, salesmen, vatcrjie:-
service « maintenance
oinployees; executives.

Reduction of store .^lo'irs;
hour exerrrptions

Hour exeroi^tions for clafc
of labor; houi's fc::
^-atciinien cc g.uardus

Hours; exce-'Dtions for re-
-.lair crews; executives;
maximum hours for saler

Hotirs

Hour:-, O'^'sic

Ho-'vr". , o-'^sic

Hour? for outside cro-s

Hours, b^.sic

Hours

9844

-142-

NAivG or core A;'OTD;;"i"T YfP'ZS OF ?POVISIO''S
ITUI'BTIR

51. Textile Procepsing 2^5-3 Hours, ODcning C: Closrag

52. Uno-err'-'e' r c. Allied Products

l.if;^. 23-2 & 3 Hours, machine

53. U-Tholstery (i Dra-oory Textile l'.^5-l Hours, general >1 oxce'-;tion
64. Usee". Textile Ba^ 267-1 Hours, for peek periods
.55, Taiolssale Confectioners 458-1 Hour provision

56. 'Tliolesrle Food ci Grocery Tr-Adel96-3 Hours

57. "wool Textile 5-1 Hours, tasic

3::rmi:>?.tion of the original hour and wa; ,e ■provisions and the ?:Tie::d-
ments tHereof of the above listed codes discloses tiic follovving ini o nnr- -
tior.:

TYPPS or CCP3 PPOVISIOH Ai.H'I'lD 50. OF AfO^VH: 'TS

1« i.'i?.::i;'num hoxirs

(a) Amendment resulting, in no change in

the normal maxira'ujn hour ;Trovisions 20

(1:) Araendjnent resulting, in increase in

normal maximum nours — : 48

normal mavtimi'un nours : 3

2. Hormal Minimui'n l/a.i.es

(-: ) Amencljiient resultin.y in no chani^e in

the normaJ minimum ^"age "provisions 5

(h) Amendment resulting in increase of

normal ainiitium viages 22

norrtial minimum \^ages 14

3. Overtime Wages

(a) Amendment resulting in addition of or ""^

revision of minimum overtime ra/,es 13

(h) Amendment oroviding for maximum hoxirs

for overtime v-ork • 28

4. '.Tatclimen

(a) Amendment rirovidin^ maximum hotu's for
watclimen l-""

(b) Amendjnent ^irovidin . uiininuii ^-gcs foi'

gs-i'^

-145-

TY?::s 01' go:,:: prcvisioi' ai "itdid 'tq. oy ,;ir

J. Ofirce and S:^1g<^, Iriiploycos

{r-) Ajaendmont vjrovidi'nii miiaimwn wa4,os and

:naxii;i-aTi hours .for tnis .tjrnc of employGO -• '^

(0) AmcncliriGnt oxceoting office anc salor;-
oiT'oloyoos from minimiim vage "jrovisior's 16

o. Sl:illcG. Erjployccs

(p) Amendment as to rainimum 7.'ai,os 7

(j) Aineiidment. as to rna.xim'um hours 6

7. ;"o:i-skillcd ImoloyoGS

{?) Amondm-^nt cs to minimum wa^^os — ->

' (b) Arac'icij'iGnt as to maximyjn hoi'.rs 13

8„ A"?; rori-tico.s '

{■■') Amoncjiiont definii:^., "ar>;jrentice" — 1

(j) A-mcndmont ss to .i&xiiiri-ur. hoxirs .''-

(d) AjnGjidiTiont as tc cnnlojinont of V'-i"-

cPntai^G of a'ToranticGS "

S. liita.stry Suhdiviaions

(-) Amondmont as to aiiviiiaVtia vaj-Gb 6

("j) ijncvidmont ?s to ■'a:.i::-.vrn hours ■ 5

li:. Area and C730t;raj:ihical Ratos of T^y

(-) Arcp ratGs of v^.y ■ 1?

(1) r-ofinition of aroas — • — 1

(c) Gcos^ra-ohical ratos for no.rtnorn district — ; — 2
('..) &G0i,raphical rates for soiithorn district — ; — 4
(o) G-eogra-ohical rates for torritories 2

11. Aiiicndmont providing ^.ox v.-age differentials "

IS. iiours of opening and closin, 4

1' . Amendment providing for oqus 1 rates of pay for

ma.lo and female employees ?

14. Prcvir.ion as to handicapped persons

(iDurcentas, g) ' ' 6

i;.'. Z::ccption of emoloyees earninj-, ^"<^ o:' inore froui

Y.xv e ?nd ho v.r "Provisions — ■ 1?

IE, 3.f.les for payment of va^cs 4

9844

-144-

The atove tabul-'^tion shovs the t^njes of amcndiaents of Inhor loro-
visions and v/ith respect to the insxirauin horn' and minimvun wage provisions,
discloses ','hether or not nn increase or decrease thereof was effected by
the particular amendment. The author has had nc opportunity to investi-
gate the causes for "these amendments of labor -Drovisions in order to
determine 'Thether or not such amendments ^-rere initiated "by URA. or "^ere
the result of apnlication therefor by the code authority or industry in-
volved. The tabulations present some nicture of 'ihat occurred f^enerally
in connection with amendments of Inbor -Drovisions.

CO DE AUTHORITY

NRa codes provided for the creation and establishment of a body com-
posed of industry members for the ouroose of administering the code. This
organization was usually called a "code authority", altho-ogh other terras
were used to designate it. The makers of the early codes uaid little
attention to the rights and obligations of a code authority, but as code
administration proceeded, experience taught I'lRA that various powers
theretofore granted were too broad or too limited. Requirements of Section
3 (a) and Section 6 ^.'ith respect to representation of industry attached
to the establishment and maintenance of a code authority so that provi-
sions relating to the election cf membership of these boards oftentimes,
because of legal requirements, policy and for the purpose of prevention
of oppression of small enterprises, necessarily had to be amended. The
administration of a code bj^ a code authority and its efforts to effect
compliance and enforcement required funds, the collection of which de-
pended upon a statement of oov;er in the code. These requirements re-
siilted in additions of provisions to codes permitting the collection of
contributions for the maintenance cf the code authority and issuance cf
WRA insignia and labels. Compliance activities with resnect to :.
codes were handled jointly by code authorities and the Administration,
Statements of power relating to the handling, adjudication and disposi-
tion of labor and trade practice complaints necessitated amendments to
codes conferring power upon the code authorities to conduct these
activities. The administration of codes by code authorities often dis-
closed the top-heaviness and inefficiencies of national code authorities.
Decentralization of this i-ihase of code administration resulted in
amendments of code authority provisions ^'hereby divisional and local code
authorities were permitted to be established. In addition, other matters
prompted other amendments of code authority nrovisions, as the following
tabiilation shows;-

TYP5 OF CODE PROVISION NO. OF AtffllTOEHTS

Election, membership and constitution of

code authority 126

Code authority contributions and finances 331

NBA insignia and label nrovisions 32

Creation of labor complaints committees - 6

Creation of trade practice complaints committees 19

permission to collect statistics and reports 62
Creation, membership and constitution of

divisional or local code authorities - 37

Additional general powers and obligations 18

9844

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TliG fol'J.ovan.c^ lirt s.hov'G -'^.ic raij.ib ; ; oi' coaof; raid tno na.ne tics'-'oi
which v.erc anondod with iL-Gsviec i; to tao oonstitution of tho coo.c 'iLtliOX'ity.
The torrn "co" ctitution" r.s uso... iii tair. re-nort refsrs to the cocVj -pi'o-
visions '"hicli '-/erG in the n.-^.tarc of -"'. I'.t-'^tor.'.op.t of the ri^^hts ^.m. ooli.^,'?.—
tioiis 01 the ■ code authority and of the 'nenfoer^-. thor:of. These -jrovirions
usually i-clatcd to the liability of the members of the code authority,
AdministiT-tive pov/er of r^usi^oncinn of their activities, rights of e.rbitr-?.-*-
tion, 'oov-cr to submit rccominenda tions to the -s.c'miristrp.tion, i:)ov".jr to set
up rc,-,io]ial committees and the other usual code authority provision'o
found in tiv:; tAodel Code. These industries are listed and set forth as
an e:r:am;;'lo of the efforts of ".'IjIA to standardise code provisions relating
to code ruthoritics and to describe the riivhts and oblij;:3.tions of code
authority menders as saicli; ".

MivIE OF CCD:

AMSKDklUT

DAT:

9.
10.
11.
12.
13.

14.
15.
16.
17.

18.

19.
20.
21.
22.

23.
24.
25.
26.
27.
28.
29.

70.
31.

Advcrti:i.i,^ Specialty

Air Filter

Alloy c Industry

ArtM'icirl Flower & Feather

AcoDstos

3oil-r i.If^,-.

Drattico Cloth Mfg.

Grot lion ooil PiT"c

Clr:'- ;>xU. Snele Hoofir:;

Concrete I/asonrj''

G o " 1 s t rue t i e n Ivla chi ne i-y

Corset C. Brs-ssiorc

Cotton Textile

Ulectric Iioi'-t ^i Monoi-pil
Pibro Can and Tube
Fur Ivianxifactxirin^,
itirniture { . Floor Yf-:/: c;

Polish
C-ro-_^hic Arts

Industrial Furnace Mf^,.
Investment Bankers
Legitimate Theater •
Lime Industry'-

& Allied Products
p.rryinJ3 "c Finishint

6d-
347-:
5-
29-
BO-
SS-

IS-
389-
■133-

Fl-1

-15-1

•1

-1.

-2

-35-1
-3

7
1
1

■ 1'

30..;-
436-

2?4-

237-

287-

357-

141-

31-

347-

4:31-

15-

84-

151-

-1

-8

Machine r

l.I?.::blo Q

ivlen • s G lo thing

Metallic '.Yall Structure

i.iillincry

Hecdlev^ork Ind. in Puerto ?dco474

ITovelty Cv.rtpin, Draperies,

Bedspreads & ITovelty Pillow 79
Oil Burner 35

Ornamental Moulding 360

i.-l

January 1 , 1"''.;
Hoverabor 2 :, l':34
December IS, 1934
xi.ugust 14, 19^:4
April 27, 1^"4
August ,rj8, If.' 4
April 22, IS")
Aiigust "l, 1" '1
December 7, l"''-:-
October 10, 1^'4
Juno 23, ir3'':
December ^1, l-':-34
ITbvember 8, 1?3'T
De cemb e r 2'" , 1*^ 33
July 17, 1 3'-:
October 1,;,1..'34
July 6, 1 3-:
FoDruary 1' , 1^735

July 1^, -/-'.
July 3,-'1934. .
AiOi-jis-t, 11?; ■■■1934
April 30, 10-3
February 1, 1934
October 22, 1934
February 10, 1034
A-oril 1, 193.1
May 18, 1934
October 24, 1934 '
December 13, 19:'3
October 30, 1934
ITove-mber '^, 19"4:
July 20, liv-A

August 24, 1934
Soptember 17, 1934
A->ril 28, 1934

9844

■146-

NAiAC OF CODI

Alv.^I-li.'ivi.i;i;T

bat;

33. Paint, Varnish & Lacquer Vl-1

33. PhotoBTfohic ci Photo Finisiiiii;: ;5'^2-2

34. Pliuabiiit: Pixtures 204-,?

35. ?ri:iter's Rollers 1C6-2

36. ite.yon J; Silk Dyeing 172-4

37. ?Lest?.ur&nt 282-2

38. Hin-i Trc-.velor 517-1

39. Rohe €: Allied Products 211-1

40. Shi;?l3uilding 2-1

41. Shoe (i Leather Finish 184-1

42. Soft Fit re Mfg. 393-2

43. Textile 3?.g 27-1
44» Textile Processing 235-3

45. Throwing 54-2

46. Umhrella 51-2

47. Undenverr ; Allied Products '^3-2 '

48. "J-^holstery £ Dra-^ery Textile 135-1

49. VJall Paper L-ifg. 19-1

50. Y/arra Air, Furnace Mf,-,. -2

51. V.Tiolosale Lillinary 201-^;-!

52. VJool Felt i-fg. 143-1

March ']., Z.- "A
March 4-, IZ"""-)
April 2'^, 1^'"4
1-Tovem'ber 37, 1£"A
March 19, 19^L'
Dccenfoer lb, 1934
December IG, 1934
April 26, 1934
October 10, 1933
August 2, 1934
October 25, 1^34
December ?"', 1933
August 6, l-;34
April 19, 1934
July 27, 1^3'1-
May 10, l-.:""4
February 6, 1933
December '^'J, 1C-"
June 37, 19 74
Augiist 30, l'^"4
llovember 30, 19 "4

T13AD1] PPACTIC:] PPOVISIOJ'S

The majority of amendments rtiferrcd either to code authority or
trade practice -orovisions, but the number of actual .provisions affected,
related to trac'e ■:)racticc rules. The types of trade practice roles set
forth in varion.s codes covered a number of subjects and no attemot has
been made, for the purposes of this preliminary report, to set out each
particular trade practice rtile. Th- variety of such rules makes such a
tabulation too much of a task at tnis time, noFever, the author naG atte:T:t-
ed to compile certain information ret,ardin^ smencijnents of traae pr: ,;tj.ce
rules. The following classification is used as a basis:-

(a) Tr?de "oractice riiles having ba?is in la'-.
.(b). Trade practice rules Ijaving some basis in l"'".
(c) Desirable trade practice 'rules from an indus-
trial vicppoint but h=^.vin'g no basis in lav.

The author has set of-t in the Outline of thir. sxibjoct, which is attached
hereto and ma.rked Appendix Wo. 1, t' o other classifications of these rules; .
viz., -j^ulesirable trade practice rules and unenforceable trade practice
rules. This report cannot concern itself with these tro last mentioned
classifications at this time, because of the need of reference to the
Trade Practice Studies and the Legal Enforcement Studies, which the av.thor
has not been ?ble to fill for this report. The number of tr?de practice
provisions , (-according to the above mentioned classifications) -hich v/ere
subjected to amendment are ss follows:

Trade practice rules liaving be sis in la^-. 119

Trade practice rules having some basis in la^-- — 106

9844

-147-
Desirable to indvintry "l/Ut h'-^.'/irit, no b-j.sir: in lav — 20o (*)

Tno follo'.Ting specif ic sifieno iier.ts rol^-^tirirA to certain rhasos oi tr? c.o
practice rules and in ad.lition to tjr.osc listed abov3 r..r--':-

Prico fi:;in,"_ rv?

ProhiLition of sales 'bclo"- coct - ,"4

Open price systems 4 5

Unifoi^ra co>t accovintin^ 20

Production control 7

Machine hour limitationr 7

Prohihition Ox ne\- instaliations

of .nachinery — 4

The FV.thor of this renort lias had no opportunity to examine the
reasoui vl'iy these various trade 'oractice rules v^ere amended, whether or
not the a.rnencaiicnts vrere sponsored by industry or ITRA. and vriiat effect
those a.menc!j".ients lia.d upon the co3.e structure. It is hoped the t thi'^
prelininary report rill give some idea of the cuestions prosentod.

iiisc:^LUi.'".ous 0C21. ?:ovi3ic\is

The formation of codes resulted in some instances of impro^oor ^-ordin^i'
m'nich, occai\se of tho tremcnduoris administrative Job presented Fcre not
noted at tnat time. LOi^islative draft smanshro rccpaived e correction of
these mistal;cs (**)

The chanL/e of the form of administration from t^na.t of an individual
administrator to a board ros'alted in a number of amer.dmcntc: s^^bstitutin:,
the \7ordr. "llational Indu.strial Fecovcry Board" for the vord "Acmini&trc.tor"

(*) A fev; examples of the classification noreinabove sot fortn may be

helpfv.l. Tj'pes of code provisions vnich ^tsvo toon included in Class
(a) are - commercial bribery, false advertising, liquidated dam.a^.c
agreements, false invoicin:,, defamation of competitors, and secret
rebates. Class (b) includes orovisions such as - design -^ii-acy,
imitation of trade merles, style airacy, s'olittin^ of commissicrs,
prohibitions against advertising allowances ant? optional stanc'arfs
ciaiiscs. Clasci. (c) includes ^irovisions such as - "oniform discoi^'ait
anc credit terns, Iocs limitation, prohibition of consignment sales,
prohibition of future contracts, requirement of inclusion of tr-^.rspor—
tation cost in piorchasing price, etc.

(**) See Ame-\dmont iJo. .?0, Lumber and Timber Prodiicts Code - Jan-'Ja.ry ri,
19o5 (the v;ord "industry" changed to "industries"). See Amendment
No. 2, Metallic Jail Structure Code - March 7, 1S55 (the words "and/or
offer for sale" were added after the -word "sell". The ori^ina.l
■intent bcin^ tl^i3.t offers of sale rorc includec' in the word "sell").
See also Amendment !:lo. 4, Electrical Manufacturing Code - Aoril 25,
lCCi3.

(***) SL;e Arnendmiont Ho.. 1, The Ctirlod Hair Manufacturing Code - Fobrua.ry 6,
1933.

9844

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On -?. nvinoer of occ?sions coOe y.-rovisions, l)ec?.u£e oi ■■'^oor draf ts,:!?.!!-
snip, imjTO'per expression of the intent of the STjonsors, f?mbiguity or other
reasons, resulted in sit^uations vhoi-e the "^ordinf; v.'?s not suhjact to in-
terprctr.tion sufficient to cover the original intent or r'^move the ambi-
guity. Some provisions vere susceptible to interpretation, but such
intororetatioii might result in a distortion of the languaj^e (*). On some
occasions actua.1 interoreta tions were in effect beyond the interpretative
scope of the code provision and of necessity required amendment. The author
of this re-?iort has had little opjortxmity to examine sucn situations, rhich
actua.lly led to amendment of the code, but this cause rf amendment is
mentioned and is sug^gested as a phase of the study fit for further in-
vestigation.

Investigation discloses tiiat seven (7) amendments related to the
effective date of the code, all of v;hich extended the ex;oiration do.te (**).

(*) See Air.endjnent Ho. 1, Prison Equipment Manufacturin;-^ Code - I'ovcmber 6,
1334.

(**) See Ai.iencinents Nos. 1, 3, 4 and 5 of txio Automobile irifnufacturini;;
Code.

9844

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ZTALlATICa^S AITL C&i'CLUSICIIS

It \7?.s roqxiirc;! that tho i:-olicios - f tho Act bo ,i;ivcr. c::-
prossicn in codes cf fair ccm-outitiov:. Tiio nov.'or o-" code-rrr'.lzine
oi.i'br?.ccd the x\ill purpose of tlio Act ?.na -/r.s t'ho fuLid'^.mcntal reason
for tho oxercisG of power, A ccr.pf.nion pov;cr \:3.s tiir.t cf amend-
merit of codes. Gv--?.rantoes of this power ?.nd its proper use meet
the most fundament-?! rules of achninistrative law. Therefore, a
coiqjlote evaluation of and nell considered suggestions re/,ard-
ini:^ 1I?A amond:;ionts insofar as the ooA/er to am^^nd \'7a3 c:>:ercisod
is a requisite of this report,

Clir.ptor I discusses the various legislative sources of the
po^vor to amend Codes, llo mention of the power is definitely stated
orccept in Section 10(h). Gonsti'u.ction r.i' the provisions of some
sections of the Act at least i;_,iveE some "basis unon which this ad-
ministrative power irry- be predicated, Tho l-jgislative history
refers to an' intention to coaf.-r such power but the bases found and
inferred are not as perfectly set forth as was possible so to do.
The ide'~'. of voluntary and innosed codes caxised doubt as t-; the
existence of the po'.7or to amend voluntaiy code provisions. It is
therefore s-ug^_,-ested tho.t now le;^islati-n, if any, contain adoqu?,te
•'^nc' specific reference to the po-;'er of amendment of codes; that
either a distinction as to exercise of the pov.-er be made between
amendmionts of volrLntar;; codes and revisions of imposed cedes or
that no Each distinct! rn be nkade; tiir.t full loowor be conferred with
resooct to tho time of exercise thereof; viz., at time of code
approval or any time t.ieroait ^r.

Tho limitations of a "juinistrative discretion arc few, as dis-
cus-od in Chapter I. Tho 'oower .'. f amendment, bein^^' such a lar-
reachinf v/aapon, sh-uld bo s'abject to well defined standards of
discretion. The policies of th^ Act arc a basis, bo.t it is sup-
r'csted th-'^t standards, ^-enorally incori^oratiri; the reasons for
amencmo-nts, particularly those offered by industry and trade and
conceded beneficial i^olic;'" reqiiirem^nts of 1I7A, be legislatively
establishod as a £,uide to and linitati.m. :r. the aclxdnistrativo
arency.

A cooplote definition jf the term "o.mencinent" so far as the
use of tho power and tjie scope of its rp ">licati^n are concerned,
is suggested. The discussion of this -lart of tho subj^jct iii Chr.ptor
II is sufficient to warrant the s-ap^es'tion.

Chaptor III presents a record of tho delectation cf the power
of '^menchaont. ilo Sc.rious deficiencies apoiear, although the refer-
once to arid use- of tho power to "substitute" P?A provisions could
be clarified and specifically brourht uaidcr tno power to "-mend".

9844

-150-

The retention of the -poY;er to amend by thu A'.'-ministrator and
the lJatio:o,r.l Industrial P.ecover;,' Board in deemed jvood policy and
ICoislrtive limitations iirjon dele.^ations to lesser officials are
sugiL:ested.

There appears to be no criticism oi s'OtiJ^esti-.n as to the use
of an order of approval of a sviccific am^^nclment. Use of a general
order of amendment and a condition-'.l order of approval is dependent
upon the extent of tne legir.lative statement of the pov/er. (*) If
broad discretionaiy powers are to be set forth, it is suggested
that the power to generally amend 1 s included therein. In addition,
the 'use of conditions should be limited so that this exercise of
the power of amendment v/ill be d^no onl.y vhen the amendment bears a
relation to the policy of the Act.(**)

The analysis of labor amendments dir.clos.js the results of IPA'S
leadership and policy of iniprovement cf labor provisions and the
additions of provisions incorporating labor policy. It arjpears from
the tabulations that most amendments cf Ir.bcr provisions related to
special tj^pjs Of erajoloyees; e.g., watchmen, apprentices, etc. The
number of cb-£'.nges of area and geographical rates of paj^ discloses
the trouble enco-'ontered by this form of v-age and hcur-fixing but
also shows the advants^ge of a flexible code prevision. It should
be noted ti:i?.t the majority of revisions of maximum hours "permitted
an increase thereof and that most of the changes of normal minimum
wages resulted in increases.

The amendments of cede ain.thority "orovisious covered all features
of code adiviinistrati'-n. I/iany were bro-ag;ht about by the policy and
regulations regarding code authorities. Amendments relating to
contributions, assessments, labels, collection of statistics, labor
and trade -practice c^ra-plaints corniTiittees conformed to the Adminis-
tration's suggestions. (***) The conferri:!,;^ 'f additional general
powers in most c-ases re;^rescnted industrial subscription to model
code provisions relating tc code aiithorities.

The amendments v;hereby the election and membership of code
authorities were affected usually affected industry/ or trade repre-
sentation; e.g., subdivisions of industry or trade, non-association
groups, and trade associations, i.ijthods of notice, balloting and ^'

(*) See comment in this Chapter, su-ira.

(**) Sou Part three hereof. Chapter IV, f..r discussion re.
conditions.

{***) :::^ Bulletin ITo. 7: Bxorutive Order ■ o. • 6479; Executive
Order. llo. 6678, :i?A fii>s.

Q844

-151-

other mr^tters inci.ent to i.acjtin.s lil:ov/isc v/ere incorporated in
such amendments.

The c-ntent of t^iis re;;iart v/ith rot'/ai-d t .- araendrnonts of trade
practice inilj^s does n;t justify ^ii evaluation and conclusion. The
purpose of this repcrt is to present in ;orelirainary form, the problems
of amendments of codes. Tiio trea.tment of such problems is not ado~
quate, hut serves as a oasis for further study, investigation and
report.

9844

•153-

FURTH£H H£3EiVRCIi - . UlIii::gLuTl!£S EVL&^'lS oF : £H£ . . _.

fart ?oim
APFEEDi:: no. !.■

The outline of the study (Appendix No. 2) sets forth in detail the
Various aspects of the subject of code amendments. This report does
not attempt to cover all of the sections of the outline.

The administrative details of procedure relative to the receipt of
applications for amendments, the handling and routing thereof and all
matters concerning efficient administration of the Act for speedy pro-
cedural treatment of amendjnents to codes; the method of reference of
amendments to code authorities, considerations thereon had by various
Advisory Boards and other details precedent to the actual approval or
denial of applications for amendment all mii^ht receive further con-
sideration.

As stated in Chapter III, various limitations upon the power of
amendment were set forth in codes, such limitations conferring upon
code authorities and industries the right of origin and/or approval
of the amendment prior to administrative approval. This report has
concerned itself with the bases of power of amendment. It is the
author's opinion that the approval of codes with provisions limiting
the administrative povrer of amendment may have been contrary to the
provisions of the Act, so it is sugr-i'tisted that study be made to deter-
mine whether or not any legislative limitation upon such code provis-
ions would be desirable.

Q,uestions of due process, alwnys a part of administrative consider-
ation of amendments, have not been considered herein. Hearings, notices
thereof, the record and the sufficiency of all such matters are of
primary concern to an administrative ap^ency. It is suggested that this
phase of the subject be considered to determine v;hether or not specific
rules and regulations relating to this matter should be legislatively
set forth (*) .

Various problems were encountered in regard to the right of sponsor-
ship of amendments. The Act said "truly representative" with respect
to codes, but said nothing about sponsors of amendments. The author
has conducted some investigation in regard^to this fundamental question,
but suggests further study so that concrete evaluations and conclusions
can be made. Some administrative rules and regulations were announced
( **) which looked to a code authority as the proper sponsor.

(*) See report on Administrative Law and Procedure under the NIRA

A rejjort of the Division of Review NRA files.
(**) See Administrative Order No. X-27, ILIA files.

9844

-153-

The status of applications by individuals or groups and the right and
advisahility of administrative conside'ration thereof, with or without
reference or approval "by a code authority or an industry, are matters
of importance to the subject of amendments. These questions are linked
with the problems caused by code limitation of the power of amendment
hereinabove mentioned.

Procedure was adopted whereby an application for an amendment sub-
jected a code to reconsideration and general revision (*). Thi^ method
of review resulted in ( l) issuance of better codes, (2) hesitancy by
industry in the submission of necessary and beneficial amendments, (3)
breakdowns of code structure and enforcement because of industrial or
labor refusal to accept suggested amendments, (4) practical imposition
of amendments. The advisability of such a policy and the causes and
effects thereof are suggested for further study.

Many amendments related to the jurisdiction of the code. Reasons
for such amendments might be investigated in order (l) to determine
means of presenting problems of jurisdiction, (2) to formulate methods
and policies of codification, (3) to arrange a proper classification of
industry, trade, products and services and (4) to prepare suitable
definitions for future use. Further study should reveal important
information bearing on these objectives.

The causes underlying the amendment of labor provisions, particularly,
their sponsors and the objections to them and the effects of thfe amend-
ments are matters of interest and are suggested for further study.

(*) Office Orders Nos. 73 and 86, NRA files.

9844

-154-

^0:i::IS?H^JIVS PaOELEiiS ?I1Y 1ITJ
OUTLIiS

Aii:ioei-iTS

1. Introduction

1.1 Objective cyiC. scope of the study

2. Bases, in the Act
. 2.1 Section 3(a)

2.2 Sections 10 (o.) r.nd 10 (b) ..

2.3 Application of Sees. 3(a), 10(a) and 10(17) to J,ecs. k, 7(b)
and 7(c)

2.^+ Legal aspect c of po'.7er conferred
2.5 Limitp.tionsj if any, upon President

3. Definitions

3.1 Ordinary c.efinition ■ • ,

3.2 Adrainistr,'- tive definition - chanjjes thereof

3.3 Discussion of relation to' term "modification"
h. Delegation of po' e:.' to approve ajnendraents

U,l To the AfciniGtrator

k.2 To N.I.R.E.

U. 3 Retentions of pov/er by the President

h.h Delega.tion of joint power

k.kl A.A.A.

h.kZ P.A.C.A.
U.5 Delegation of povfSr by Administr.^tor or/J.I.R.B. to .

U.5I Division Aduinistrators

4.52 Territoricl Acijninistrators

U.53 Liraitation and requirenents

5. llethods of ,?j:ienc"j':ent s of codes

5.1 General enecutive or administrative order

5.11 Araenoj.ient s of all codes

5.12 Amencfcentrj of more than one code

5.2 Approval of specific amendment

5.21 Industry' application

5.22 La.bor application

5.23 G-overmentE-2 action

5*3 Legal discussion of methods employed

^.k Code limitations on exercise of method of c^xiendment

5.^1 Necessity of assent of industry

5.^2 Kon-v/aive;; of constitutional rights

6. Types of codes subject to amendment

6.1 P.R.A.

6.11 General '- necessity of assent

6.12 Substituted provisions

6.2 Codes under Sec. 3i^) p-^^ Sec. 3(^^)

6.3 Labor agrear.ents under Sec. 7(b)

G,h Rales and regulations having effect 01 a. code

SSkk

-155-

7. C-eneral menu: iciitn orl" rj.l codes by exetnitive or r.cninistrp.tive
orders
7tl Purposes

7.11 Policy
7.1^ Lo :: lit;-
7.13 Cla,vit7

7.l'l- Ror.ovrl o:? coiiflictc. -^dth othoi' Ir.'s' or .yove-'-nmental

a:,'enciRs
7.15 Other 7>irjo;es
7.2 'Effects

7.21 On gonevT,! co'le stricture

7.22 Indu^tr;-

7.23 Labor
7.2U Corsu-^.ers

S. ■ i":"Ui. initiftion of r.;iend!nents
S.l .'Causes

g.ll AdjuctLier.t to policy

5.1 2 Le.-.-Iity

U.I3 Code ,'\c>.iinis"Lrnt ion difficulties

6,1k Cor,pli?iice

8.15 Enforcevient

r .16, ?.ecO:";r-itio;i of protesting groups

S.I7 Overlcvopirifj definitions

3.1s Clp.rit" ;-.nd draftsmanship

6.19 liicrerne of exemptions

8.11 Ifon—susccptiljility of interpretrtion of code provision

8.1_2 G-eC::;;ro,p'.iic",l reasons

8.1^ Si}-iplific"tion of code stiiicture

8.131 Consolidation of codes

8,12.2 Co:.-solidp.tion of industry divisions

S.IJ^ 1.0 del Code

S,l_34 I:::l:,L'j;eiaent of scope of Incxistry Drsic Codes (as
cUst i:\mi shed from 'MA Basic Code.)
2.IU I'odificr;':i in of Code iiuthority set— iip
S.l^ Li 'it: ti'" or er.larfjenent of oovrers of Code Authority
S.l^ Oo'^er p .reposes
8.2 G-eneral dicc-.cci n of I'T.Ji.A. require: 'ent that application for
air.endment opened the entire Code for r.cninistrative study and
revision

8.21 Rirposes

8.22 Z;f:7ects

S. Annlvsis of applications for amendiiients r.'id a-:e:idr-ents of code
provisions •■ith respect to

9.1 Code .fefi:iitions

9.11 I:adustL'- or ruodivisions thereof

3.12 I-'erfoers of industry and classification thereof

9.13 ^istriJAtio:! ?;=;encies
g.lU Co: 1:10 Cities

9.2 Lator provisio;?.s
9.21 1 i?;::i- rcu ' '_ .o" i_ s

9.211 I.'or::T.l week period

5.212 l.or:ial d.a^r period

9.213 Overtirae tolerance
9.21U Pe.'l: -oeriod

9SUU

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3.22 Miniriuin 'T.^^es

9.221 ror]-.?.l tiTX.e

S» 2^-11 Hourly rate

5.2212 Piece rate

5.2213 '..■eelrly rate

9.222 Overtine rate

9.223 Apprentice rate
9.22U Gkillec. rr.te
9.225 Union contrr'.ct rate

9.23 Child lajor

9.2U Apprentice li:dt.:tions

9.25 Kandicrpped •■orhers

9.26 StpndrJ.'ds of surety and health

9.27 Horae Tork
9.2s Stretch-out
9.29 Scrip pa,yr.ents

9.21^ Equitaole re-djustnent of wages above tlie .rlnijirujQ
9.22 Postinc

9.22. Collective or.iYJ^-ining
9- 24 Miscellaneous

9.2^ jevelopnent of lalsor policy '.7ith respect to rj.iehd'-ients
9.26 Legal r.spects of la.bor provision '^jiendients
9.2j[_ EvalUcition of eiqperiences
9..3 Trade prp.ctice provisions

9.31 C-eneral anc.l[ • si s and discussion of tr.C.e practice
provisions being grouped a,s follows:

9.311 r'-enercJ_ly accepted in law

9.312 Desirable but not fully accepted in law
9*313 Desirable but no ba.sis in la\7

9.314 Undesirable

9.315 Unenforcible

9.32 Price policy

9.321 Price fining

9.3211 Pi"ed prices

9.3212 Lo::est reasonable price

9.3213 --odel mark-up

9.322 Price control

9.3221 Loss leaders

9.3222 Loss limitations

9.323 Open price systeras

9.3231 Institution of system

9.3232 Particulr;. contracts

9.3233 -'ethod of operation

Note: 7or purposes of discussion bid depository s"'stens are included
under this sub-division

9.324 Cost provisions:-

9.3241 Seles below cost

9.3242 Obsolete goods

9.3243 Ilr.ergency disposals

9.3244 Cor.ipetition

9844

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'9«J!25 Ac CO.-.: it in^^ s.ysterns

S^j'SI;')! Mecessity of ?;c2irov".l of Acuiinistrp.tor
9.J'.?.f'.'' Co'.i:ple-cit7 of yy;;te:i
3.:;;y>3 Diffxciilties of innt-JLlatlon
9o2o Srleti reportinf?; sj'stoins
9. U Amendment G of CoC.e Aiitluorit;,- orovisionG
9t^l I'lGcessitiGG of a^nendracnts

'9«^2 A.ien'lnentc rffecting rifiiits of Coc.e Aatliority
9«'+3 AiciiOjientG r.fiecting o'bligations of Co'de Authority
S.4h AMencu'.e::tG incorporating suc^i'-estions and regulations

of IT.!:. A.
:,'.U5 Le/;;rlity "

9.46 Poiicy ■ ■

9.47 5'in?,nces

9. Us Incorporation.

9.U9 Tr "e csfjociation participation

9.5 Labels

9'51 Seceosity for use of labels

9 '5'- Tiroes of r.'.iendment's submitted eig to ■• .

9'.521 Control
, 9. [322 Policy

9.523 finances
9*53 Tjn? e s of i ndu s t r 1 e s su"b mi 1 1 i n,°' 1 r'D e 1 a.:.ien drae nt s

9.6 3t;vfcistical I'leports

9.61 S:".ecutive order of December 7i.l;/53

9.62 T'Aies of a.iendments submitted .ae, to

9.621 C-overmnental reports

9.622 Coc'-e Authority reports

9.7 Conditional orders of approval

9.71 A'.-iend^.ents subTnitted incorporating- conditions

9.72 Amend-ients chan,^.;ing conditions
9.2 Miscellarieoi^s code amendments

10. Period of aj-iendnent
10 ,'1 -Suration of Act

10.2 Dura,tion of Clode

10.3 Tenrporarj.'
10. U Ei;ergenc3^

11. Amendments of orc'ers _ '

11.1 Executive and rdiinistrative orders of generr.l a.pplication

11.2 Orders of approval

11.21 Codes

11.22 Aieiid.;ents

12. Procedure as to ai'.end'.ents
12.1 Application by

12.11 Industr-y ■"-e. -ber

12.12 Industr-' ;;roup

12.13 Code -j.-'.tAority
12.131 :iational

'12.132 Local .
12. lU Instituted' by H;H.'A.

I2.IUI Industry Division
12,l'!-2 Lc;i:a.l Division
I2.1U3 Advisory' boards

9SUU

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12.1^:-^ rield offices

12.1'-r5 Other departnents of ■..!.?.. ^.

12.15 Govei'nr.:cnt p.-^^encies other tiian "iI.r..A.

12.16 Lc;oor

12.161 Individual

12.1o2 f'-roup of eniployees

12.1621 Uinor-sanized

12.1622 Union

12.2 Considei'rtiori 01 apv'lic- tion

12.21 3y C.eiTiti'

12.22 -^dvicor7 I3or„rds _ ■

12.23 Research and Planning Division
12. 2U LeQcl Division

12.25 AcJi'.inistration laerabers and Code „-.thority

12. 20 Reviev: Division

12.27 Srztent of consideration "by boards, o-;c., and

li: '.i tr t i :.ns thereon
12.2s Dixrisic";! adiinistr.-'tors
12.29 Either officials n.nd President
12.21_ Z::tent of considera,tion of briefs pro aud con
12.22_ Field offices - K.R.A.

12.3 Dae process rcrairernent

12.31 Applications submitted to hearij'i.£

12.311 1'3'pe, forn and extent of notice

12.312 Place of hearing

12.313 Record of hearing

12.32 Applications subraitted to an op;~ortu;iity to be heard
12.321 ^S-'pe, forn and extent of notice

12.33 Application receiving no public consi^'-eration
12.3^+ C-enerrd legal aspects

13. J'inal action

13.1 Porm

13.2 Notice

lU. Analysis of procedtire and tine cons\ined in the handling of appli
cations for a- lencj-.ents
lU.l Interoffice
IU.2 Intraoffice

14.3 Field offices
lU.4- Dae process

IU.5 Extra — li.R.A. reference
IU.6 Effect of policy ralings
IU.7 Protests

lU.S Conpa,rison ■:ith procedure of other govennuent agencies '

IU.9 Causes of c.elay
lU.l Effects of delay
15» Analysis of rj.ienchients

15.1 ^mendnents sv.bnitted ^oy private groups

15.11 Effects upon code

15.12 Effects upon industry

15.13 Effects u_;'On labor
15. lU Effects upon consumers

15.2 Amend::ients i:istituted by w.R.A.

15.21 Effects -apon industry

15.22 Effects upon labor

15.23 Effects upon N.R.A.
15. 2U Effects "apon consumers

3Ekk

-Lo'J-

16. Sabstnjitive TJi'oble .s

16.1 t'hat I'igJ.ts 01 s;- onsors.iip of rvieiuients r.hov..lo. 1)0 granted?

16.2 What conci ..e:,\-,tion of .-iacn.'.nents shoal'", 'ue ,:,f:!'orded industry
and 1p.oo"_- 0:.' ".. ,-..A.

16.3 Shoulr'. u-io .Q- g:.' of f"'enera.l ;viond,annt of c.ll cotles be utilized?
l^.U What p, r-tici:;r':.ion should irtdastry r.r.'" '...■'■jov h-^.ve in the

issuance of 0L'."-crs of .reneral aiieni.'. :e::ts?

16.5 17hat roruiro' '.cntc 01 3.ue process Siic'-lv'. \:c ,:,c.hc.red to by IHIA,?

16.6 Should li-'J^ ii.ctitute araendinentr. on its o-.rn :;.otion?

16.7 Effect of • lord.ents on priorly crrnted e:::e--iptions
(See Outline 0:1 Exemptions and FiXceptions)

16. 5 Should fiol'. of:;'ices be .-'^ranted po^rrer to rJiend codes?
16.9 Should r:".?.«A. o'len a code for general revision upon the

r.ubnis:;ior. of r,:i a\iplication for a specific P.'nendment?

17. r.ffects of ;. 'Oiid-ients on

17.1 Code structure

17.2 Declared pivjposos of the Act
17 '3 Large bi-'.sinesL imits

17.4 Small enterprises
17«'5 Monopolies

17.6 N.^.A. policy

17.7 Le;~ality

17 .5 Industry
17.9 Labor
17.1 Consujiiers

18. Evaluation
19 • Conclusions
20 . 3ibl i ograpli;/

9SUU

•160-

PART FIVE : CONDITIONAL ORDERS OF APPROVAL
By • ■

W. U. Chubb

-161-

IIITn0:'TJC7I0N

The "Administrative Problems ?.-view" was set up to make a re-
view of certain key problems wnich prrsented administrative difficultieo
during the neiiods of code forimilntion and administration and to examine
some of the methods develoTj'-d for nandlinj them.

Such iiroblems hai, on one xiand, to do with Classification, Over-
lapping Definitions and Multiole Code Gov- rage which v/ere fundamentally
inherent in any attempt to codify industry and, on the other hand, to do
witn oroblems of ffdjustment to developed policies, and of methods and
machinery for reconciling and adapting the administration of codes under
the various difficulties met due to practical conditions. This latter
tyoe of -oroblems gave' rise to the use of such devices as Conditional
Orders of A^proval, Amendments, Exemptions, Stays and Interpretations.

All of Che above -oroblems and also a collateral study of the
subject of Uncodified Industries are being reviewed and discussed in sep-
arate reports.

The accompanying d1;udy covers only conditional oroers of ap-
proval and because of its nature, does not, to any great degree, tie in
with the otnpr studies, but in common with the general objects of all rf
these studies, emphasis has been -nut u-oon an analysis of the experiences
during tne code period pointing toward substantial guides for the drafting
of new legislation and plans for its successful administration.

All oodes have been examined for conditions imposed in the order
of approval and tne various types cf .conditions classified in- Appendix "3"
herein. A representative number ' of ' typical cases have -been analyzed as
to, tne function nerformed or attempted oy the use of this device, its
successes and failures, and the legal problems .generated by its application.

In Appendix "2" uereto will be found a detailed outline which
was originally prepared witn great care for an exhaustive treatment of
the subject. La.CK of time and the difficulty of locating -records under
present conditions prevented this exhaustive analysis of all cases, but
anyone desiring to make a more complete examination of the subject will
find that outline-and the' references -iven to be very useful.

The principal phases of tne subject that have important bearing
as guides in th(- preppra,tion of new legislation and subsequent adminis-
tration thereunder, hhve been prepared in the form of questions and this
revip\'V has only attempted to collect data adequate to answer these ques-
tions.

The present sub-title .embraces a review principally ^'f conditional
orders of approval of codes, agreements' and amendments as issued by the
President, the Administrator and the l^'IRB, but also to a limited extent,
conditional orders of approval of minor administrative actions by the
Administrator and by division administrators in such cases as code
authority elections', by-laws, trade practice complaints committees, etc.

9844

-162«-

CHAPT'i23 I .

FART FIVE.

WHAT POWERS OF AFFROVAL O F CODES . AGRESMEN TS AID AIJBNDMEHTS
WERE CO'NFEigiED EY TIE ACT?

In order to olitain a proper orientation for this review, it is first
necessary to examine just what specific powers of approval were con-
ferred by the Act and if the language "be not clear, to go "back to such
evidence of intent as may te shown by hearings before the Congressional
Committees prior to the passage of the Act. (*)

(a) VOLUNTARY CODES

Section 3 ( a) of the Act conferred powers upon the President
to approve codes voluntarily applied for, as follows:

"Section 3 (a) . Upon application to the President by
■■ * * * associations or groups, the President may approve a
code or codes * * * if the President finds * * * (i) * * *
no inequitable restrictions or admission to membership * * ♦truly
.representative * * * * and (2) * * *code or codes * * * not * * *
promote monopolies or eliminate or oppress small industries * * *
Provided * * * shall not permit monopolies * * *; Provided
further * * * nothing * * * shall deprive (certain) persons of
right to be heard prior to approval * * *. The Presiden t may .
as a condition of his approval of any such code , impose such -
conditions * * * for the protection of consumers, competitors,
employees and others in furth.^rance of the public interest, and
may provide such exceptions to arid exemptions from the provisions
of such code, as the President in his discretion deems necessary
to effectuate the policy herein declared."

(b) PRESCRIBED CODES

Section 3 (d) of the Act conferred power upon the President
to prescribe and approve a code uiider the following conditions:

"Section 3 (d) Upon his own motion , or if complaint is
made to the President that abuses * * * are prevalent in any
trade or industry * * * and no code * * * has been approved

*** the President after * * * public notice and hearing * * *
may prescribe and approve a code * * * which shall have the
same effect as a code * * =t= approved by the President iindor
subsection (a) of this section."

(*) In the quotations following the underscoring of certain parts
has been added by the aiithor a2:Ld does not appear in the Act itself.

9844

-163-

( c) AG-HEEivZElJTS

Section 4 (a) of the Acb confei-red pov/er upon the President
to enter in af^reer.euts Y;ith, nml approve voluntarv agreements bety/een
persons as follows:

"Section 4 (a) The President is authorized to enter
into agreemexits with, and to approve agreements between and
araong, persons engaged in a trade or industry, labor or-
gfini::ations, and trade or industrial organizations, asso-
ciations or groups * * * if in his judgment such agreements
will aid in effectuating the policy of this title with respect
to transactions in or affecting interstate or foreign commerce,
and will be consistent .with the requirements of clause (2)
of subsection (a) of section 3 for the code of fair
competition."

(d) LABOR A:-RESME1ITS . ■ .

Section 7 (b) of tne Act required the Presidentto afford
every opportunit,-' to employer r, and employees to establish by mutual
agreement standards as to maximum hours, minimum rates of pay and other
conditions of empjlo^inent and such agreements when approved "by the
President "shall have the same effect as a code * * * approved by the
President under subsection (a) of Section 3". This implied the power
to approve.

Section 7 (c) of the Act conferred pov/er upon the President
to investigate labor conditions in a trade or industry where no mutual
agreement concerning labor conditions had been approved under Section
7 (b) , and to prescribe a limited code fixing certain labor conditions,
which "shall have the same, effect as a code * * * approved by the Presi-
dent under subsection (a) of section 3."

( e) AliEliDMBlOTS

Section 10 (b) of the Act conferred power upon the President
to modify any order, or approval issued under the Act. This established
the power to approve or prescribe amendments.

(f) LICEi:SIITG FEATURE

. Section 4 (b) of the Act conferred power upon the President
under certain conditions to license business enterprises. This power
expired June 16, 1934 and was never used, hence no conditional orders
were involved under it.

Inasmuch as orders of approval in their intended effect and
in many cnau^ their legal effectiveness departed far from the provisions
of the Act, it ig deemed important to analyze the sections outlined
•above carefully to determine just what was provided in the Act, particu-
larly in Section 3 (a) and Section 3 (d) PVithpr.izin^ "conditions".

9844

-164-

Considering Sections 3 {p) and 3 (d) of the Act together, it
is aDparent that the former ras intended to provide the machinery for
voluntary codes alone and the latter v.-as intended to provide the
machinery for prescrihed codes alone (often termed ii.iposed or compulsory
codes.)

Section 3 ( a) provided that " Zhe President may, as a condition
of his aTPproval of any such code, impose such conditions * * * as the
President in his discretion deen:s necessary * * *" . (Underscoring added)

It is very evident that this wording in connection with a code
voluntarily applied for, conteinplatea that conditions imposed "by the
President were conditions of and antecedant to the granting of his final
approval, leaving the voluntary code in a suspended state of effective-
ness prior to inclusion of or assent to the conditions imposed, and did
not contemplate the authorizing of arhitrary conditions in his final
approval of any code voluntarily applied for without thereby rendering
the code in fact a prescribed code. To preserve the voluntarj/' nature of
codes under Section 3 (a), any such imposed conditions must necessarily
have heen assented to or included "by duly authorized sponsors of the
voluntary code prior to its tecoming effective or the code was a pre-
scribed code.

It is evident that ho matter what might "be the importance of
an imposed condition, the principle is the same, for it clearly would
be impossible to draw any line of demarcation based upon importance of
the imposed condition. It has been generally considered that there
were no codes prescribed ujider the provisions of Section 3 (d)-, but
codes voluntarily applied for and approved with conditions in the order
of approval unassented to by the duly authorized sponsors must be con-
sidered as falling under Section 3 (d) "upon the motion" of the
President.

If such codes were approved by either the Administrator or
the National Industrial Recovery Board with conditions in the order
of approval unassented to, the codes would appear to be legally non-
effective because of lack of delegated power of approval londer Section
3 (d) . (See Chapter II)

The only code containing imposed conditions in the order of
approval \7hich appears to have had the conditions assented to and a
further clear order of final approval issued, v;as Code IJo. 1, Cotton ^
Textile Industry (discussed more fully later herein).

Thereafter conditions, some of a vital nature, others unim-
portant, were imposed in many orders of approval and the codes con-
sidered effecliive by the NRA as voluntary codes without the issuance
of subsequent orders of final approval after the conditions were
satisfied by assent or othervrise. In many such cases (probably a large
majority) the sponsoring bodies proceeded upon the basis of the con-
ditional approvals and organized for administration of the conditionally
approved codes and thereby tacitly assented to the conditions imposed.
This probably legalized the approvals as voluntary codes although the

9844

-165-

eff ectiveness as respecting,- individual industry members might still
depend upon the forn of authorisation £^;iven to the sponsoring tody.

Under Section 3 (cl) for codes def iiiitel^^ prescrihod "by the
President, it -.■■o\-.ld he unlilvel^ th,-.t nny co-iditions '-ould ever he re-
quired in the order cf approv.?! since the President necessarily could
control every provision prescrihorl therein.

Under Section 4 (a) for vorant.ary agreements entered into, or
approved hy the President , no pover to impose conditions was granted
hy the Act since the reference in Section 4 (a) to clause (2) of Section
3 (a) was only to the requirements thereof.

Under Sections 7 (b) ind 7 (c) for mutual ' agreements and for
prescribed limited codes covering labor, conditions , no specific power
to impose conditions was granted by the Act. Such agreements or codes
upon approval had the same effect as codes approved under Section 3 (a).
Conditions in the approval order would therefore serve to render such
ac.Teements noneffective until assented to, unless specifically pre-
scribed by the President himself. In the case of prescribed limited
codes under Section 7 (c) it would be unlikely that any conditions would
ever be required in the order of approval since "the President could con-
trol every provision prescribed therein.

In support, if necessary, of the conclusion that Section 3 (a)
covered voluntary codes only and Section 3 (d) covered prescribed codes
only, rendering codes approved conditionally by the President, in fact,
prescribed codes, attention may v/ell be directed to the intent shovm by
the statements of Senator Wagner in exj laining the original National
Industrial Recovery Act on May 32, 1933 before the Senate Committee on
finance as follows:

"Senator Wa.gner. * * * The national industrial recovery
bill has as its single objective * * * reemplojTTient * * * at *
wages sufficient to secure comfort and decent living. This * * *
end is to be reached by * * * cooperative action within industry,
encouraged by law and supervised by the President for the pro-
tection of the public, and * * * expenditures for public works,

* * * the bill centralizes authority in the President * * *.
Despite this centralized power, the emphasis is upon voluntary
action. * * * trade and industrial association or group to
prepare * * * for approval a voluntary code * * *. YiThen such a
voluntciTy code is approved by the President * * * binding upon
the entire trade or industry * * *. * * * no code shall be
approved unless * * * (certain conditions are met as to true
representation, no monopoly, no discrimination — embodies labor
provisions of Section 7 (a)

"Thus far I have discussed codes which are voluntary

* * * and it is primarily upon such spontaneous action that
the bill relies. * * * But if any trade or industry cannot
or will not cooperate in the formation of voluntary codes,
the President is authori?,ed, after proper investigations and

9844

-166-

hearings, to prescrilie * * * codes * * * or if any trade or
industry volvintarily arrives at some of the requirements of
a code, and neglects others, the President may in a proper
manner prescribe these others £ind comhine all in a general
code. * * * in absence of need of general code * * * pre-
scribe a lir'iitod code dealing only with (labor conditions)

"Senator Gore. The three categories, what are they?

"Senator Wagner. The voluntary code, the compulsory code,
the licensing feature, which -I will come to, and then there
is the agreement provision."

9844

-167-

J:^1!I^2 il

P'/JBAS AJIAIICID?

T>-e first dele;;r.tion of r.pprovr.l .lowers by tlie President was
made to tJ.e Aflxiinir-trator oy Executive Or.'.er Ho. 6j43-A, December 30,
1933, e.-3 fcllcA'is:

"(l) 1!.^G a^Jproval of codes cf fair competition,
v.'it:. tAe exception of cedes for major in-
dustries (beinji in general tlio-e industries
noriiially employing in excess of 50,000 em-
ployees) as SG classified by tlie Adminis-
trator for Industrial Zeccvery pjid witli the
exception also of any code of fair competi-
tion i ."posed under secticn 3 (d) of said
title of the a-ct.

"(l) 11^3 appr-vel of any amendment or modifica-
tion to, exception or exemption frci, or . ' .
eli-.-dnation of rxij one or more provisions of
any code ox fair competition.

"(3) i^othinti lierein contained '^...all be con.:trued
as amendini^ any previous delegations of
power to any otier Deojr.rti.ient of tl^e ,r-cvern-
ment."

Executive Ordor H c. G443, rTcvember 22, 1S33 delegated ^ower
to tPe Administrator to .rcdify, or grant exceptions to or exemptions
from, a.;:^re3ment'- under Title I, tPen or thereafter entered into or
appr.ved by tie Pi'esic''.ent.

Pxecutive Crder No. 65S0-A, Febraary 8, 1934, delegated power
to tlie Acaiiinir-trator to prescribe rales and regulE,tions governing
amencLuents, modifications, exemptions, exceptions and stays .and
other forms of relief from approved codes.

Executive Order No. 6750-A, June 37, 1934, delegated power
to tie Aih.i..nistrator to enter into agreements under Section 4 (a)
wit: ersons engaged in trade or industry in Puerto Pico, h'awaii
and Aip.oha.

Executive Crder liO. 6764, Jiuie 29, 1934, delegated power of
approvri of codes covering in ^^eneral food indu'tries jointly to
tP.e Secretary of A:;riculture and tie A'lrainistrc.tor except major in-
dustries ajid codes imposed under Section 3 (d) and also delegated
pcv/er of approval of a:fiendmen t s , otc. to e^.C-i for the codes adiuin-

•168- -

istered by eac". . respectively. Tl-:.r: order clarifiec''. tlie "broad dele^a-
ti.n ,^iven tc tl:e Adi^-mir-trator "ander Zy.ecutive Ordar ITo. 654o~A.

H;:ec\'.t:'.ve Order "do. 6359, 3e ..te/.iber 27, 193-,.-, rodelej^r.ted, amonj.
ot'ier!?, all ;,:oi.7ers of approval tderetcfore dele.,ated to tlie Ac'jTiinis-
trator, to tlie ITaticnal Industri'.l llec^very 3crrd.

Executive Order Vo. 6999, l.iarc'i 50, 1953, redel3:^ated all of
t"'.e f-unctions and powers v/itli certairi. specified exceptions, iron
tae Secretary oi A^'ricul tare to tLs ITational Indastrial Heccvery
Board vrit'i res,~iect to five specified food indur-try codes.

984-4

-169-^,

:ji?T;.iii III

TViiAT CIHOiSTivliCES ATT.£::DJiD TS£ UiG^ OT T::Z DEVICE OF

cc.NDiTi'ri: Ai-PXVA L CT (_ ) ccij^s, (o) A" :i::]:i.;ekt s . (c)
Ai.iE: :a:E:"T3 aI'D (d) o^hek ,^^ixi a di.:i:;i5tra.tive actioics ?

(a) C'DES

Code IIo. 1, Cotton Textile Industry wp.s approved by the President
J'aly 'J, ] 933 on thirteen coi.ditio.iS which v/ere immediately referred
to t.:.3 Indur.try, ^.scented to, or satisfactorily adjusted and the con-
ditionally'" approved code amended accordinj^ly. Prior to the designated
effective date, tlie President issued July 16, 1933 a furtier E::ecutive
OrO.er in v»h^ch:

"It is ordered that the condlti:n heretofore
imp; sod as to the terrainaticn of approval jf
t±ic Code is nov/ V'/ithdraivn and that the Code
of Tair Competition for th.e Cotton Textile
Industry is linallj'" approved with the condi-
ti^^ns so proposed, as set f rth. in Schedule
A rtuFXiiOd lereto."

Th:i.s action conformed literally to the clfuse in the Act,
Secti..n 3 (a), "Tl:e President ma~', as a condition of his approval
of sjiy such code, i.apose such conditions *** as the President in
his discretion deems necesso.ry to effectuate tl^e policy herein de-
clared." Cede ilo. 1 thereby retained a purely voluntary status and
was effectively'' approved under Section -j (r.) of tie Act.

Code ITo, 3, 'Jool Texti].e Iniv.stry, was tie next code approved
conditionally. It was approved July 26, 1D33 hy the President on
condition th.at "a Wool Textile Industry Co-iimittee he created ***".
In til is case Cas early as Jiily 26, 1933) apparently the literal
mepjiinj.; of the clause of the Act, of Section 5(a) quoted above, was
lost si/;;ht of, and tiiis Code was by the terms of the Order in a
state of suspended approval until the condition was complied witii.

Code ho. 6, Lace Mn,nufa.cturin£; Industry, approved August 14,
1933 by the President on c-ndition that a. Ls.ce Manufacturing Indus-
try (Cede Authority) be elected. Code History states (p. -27) that
three days later the- industry witi 90fo present held- a meeting to
elect such comiiiittee, thus satisfying the condition.

Code No. 12, PhotograpLiic iianuf ac turing Industry, approved
August 19, l'J33 by the President on condition that a Photographic
Llanufac turing Committee be created. This condition was not met
until October 30, 1934, over a year later, apparently througli mis-
understanding that tne required committee necessitated an election
and was not satisfied by the group of soven appointed as the code
committee. The legality of considering the c>:de effective as a

9344

-170-

voluntr.r-' coCc in tlio ■ic'.nti'ie ■ li. 'lit hrvo successfully "ocon ch:,?.lcn-';cc'.
hr.f. i iportrnt c''Ses fi,;.Gnc'cc. tliorcon,

Coc.c iro. 13, '■'isiii:,-'- • T.-C' ■■''.:. Inc'i^stry, ■'■■'r- ".TjrovoC. A-.v-Li.st 1$, 1333
"b;,'' the Frcsic'Gnt a^i.jjcct to ■• co.ifition rcriuirin-;; rncncl lent "as soon as
prr.cticr/ole" of tl-c Associr.tioji ''r.-l; -rE, -.'hicli -:'ern i'l conflict ^-"ith
Section 3 (<-) (l) of the Act, ilraifeGtl:-, this coc'.c coulc. not lip.ve lieon
lef;r.lly rpprovcc". rnc^ effective until thif ' T.r? c'ono -itnout viol-'^tin," a
Epccific recjuire icnts of tliF, Act,

Coc.o JTo, ih, ?.a7on r,nc. S^-ntiiGtic Yai-n K-'-nufacturinf; Inc'ustry,
"ap;;rove(."- Auiist 2fS, 1S33 "07 the rreGlecnt of the conc.ition, conpliance
'•'itli '-'hich ±h horcl)"''' -'equiroo, that reports shall "be furnished fron tine
to ti :c to the Ac-iinistratoi' V/ each nnplo3/cr" concerning Ir.'bor infoma-
tion. I>uiifest"'.; , failure of any cTToloycr to conpl;/ -;ith this conc.ition
at "n;;'' ti.ie .Tcn the coc'.c ler^ally revert to a state of eus jenc.ed r :pro-
v.-l.

There io no evidence th'^t this condition "as '.et at any tiue acre
th^n hj'- lero rccifent o'-'' trrnsnittin.-^' a copji of infornation e::changcd

'.lonthl-/ anon." only four of the principrl nrju^fact^irers r^hordn^' '.7r^f:e

rates. This v/a'~- in no snnse a. reoort, (See Coce History pp. l6l-lo2.)

The le,';^al ef:"cctiv>inoss of the code could have heen cha,llen£;ed until

reports "cre suhiitted "by each enploycr in accordp.nce -'ith the order of
approval.

Code IJo, 31, Line Industry.'', '-as approved Octover 3. 1^33 ""^Y 'the
President on' condition that the Association a?:iend its "by-la-'s. This is
reported to have ooen satis;"ied. Sir jiojiths later an avienoxient "as
.approved April 1, 1935> "'ith e::tennive conditions in its order of
approval partially a,';reed to "by the incur.try p.r,C. pa.rtially regr,rded "by
the indxistr;'- as elininatin^- the c'erircc" inclusion of provisions a."bsolutely
necessary for proper adainistration of the code, ¥.0 assent to the con-
citions in the order of approva.l of the r:icncr.ient rppCcars froi.i the
record.

Code No, 9» aiend'-.ient to Liiiiher c'; Ti.n'bGr Products, Action
Octo'osr '3» 1933 "i^y the ?resit"ent. This is not a conditional order of
ap.rovrl, "but is cited as an instrnce of en ineffective approval, (See
"l^ound Yor.vie I, frfje fOJ,, Codes of Pair Corpetition) , The President
has here :orcly r.i;':ncd a recon londation addressee' to hir: "b;,^ the Auiinis-
trator, ,

Code Ko, 5'-"'> >juff rnd Folishin:;; '.nieel Industry, '-as approved Koven-
"oor h, 133fe ^^7 the President on condition that one of the unfair trade
practice ^niles "be deleted --hich crlled for resale price na.intena,nce.
There a:: ears to he no evidenc3 of assent to this deletion other than
tacit asr-ont in the orfjanizatioji and -"unctionin;-; of the code .-u thoritj'',
■•'hich 'v"s the g-^oup sponsorinf':; the code.

Code ilo, 12;., Unholstery and Dra;pory Ter.tile Industry '-?a.s approved
llovei.foer 27> ''■S33 \'' the President on conc.ition that certrin classes of
r.anufr.cturcr'j cotild elect not to "be "ooimd upon notice ;uven -'ith a.
given ti;ie linit (later er.tenc.ed to Dece i"ber 23, 1S33«) Industry

3SU1;-

-171-

;-.p--arentl;,' cosiroc" this conrition --hiclL w.C.c it 'co; sible fol' then to f;et
r. coc'e, -\i(. r,ltliour;b. the cor/ition": "■.''>e^,i"' not to lir.vc been specif icnlly
£\Hsentec'. to, the orgmizr.tion r.nc". oocro.tion of the code rjuthority inplied
tec it r.sscnt.

/
Code Ho, l'>?, Cr.M llr.uufr-.cturi:--/;; T:id\'.r.ti'", -v.s r.ppi'oved Decenber I5,
1933 ^7 tlie ?:.-e;:;:i('er.t - -itli t'vo c j.;/ i Giorr; , the nocond r eqaiinng s-abnis-
Eion of atrtistic"! i:i:'or':r-tion to lOA., T'loi-e r;pper.rs to "be no record of
asGcnt to the conditions i'-.'OPcd o\-.t 7.ih(vi3e there is no record of o"b-
lection nnr the coCe authority election .-.nd operation lent tacit assent
to tho concition-o, in the or('.cr of r: .rovrl.

Coco iTo. 20;';:, Carpet and liMQ 'fenufacturinc Industry, '-/as approved
Jrnurrp ].;•;, 193''i- ^"^7 the President on condition that a provision con-
cerainp "voliiJio ■"llo'-'ance" oc s taycc\ pendin-:; further investigation.
Thir \-'r.s done on account of opposition raiscid "by hviying syndicates ajid
••holcsale (."i"-tri"outinp o'r.;;ani;^ations, llo infornation is availahle
sho ■inj\,' industry reaction or rny assent to the stay.

Code i\o, 23G, Cool"in:P and Heating Appliance iianufacturing Indv.stry,
'-'as approved Ja:Taary 3'^, 193^^ ^V 't^'^C' Adninistrator on condition that
the -aitin.-:; "oeriod hct-'ccn filint" of prices pnd their effective date be
str.yed, JTo recorc" was found of industry assent to this prescribed con-
dition, The Ac'ainistrator' s delej^-atec po^er soeci'^icrlly e::cluded ap-
■orovrl of pv.-:scribed codes. The effectiveness of the approval of this
code, "-'ith ji condition, 'las therefore subject to challen;;;e until the
condition ■ -as assented to.

Code "do, 25s, Crst- Iron Boiler rnd ?.adiator Industry, '7?-s a.pproved
Feb:.uary j, 193'r by the Ac'ninistrator on condition that the provision
covering resale price --irintenance be deleted. This '-/as stated to be
"?- very serious blo" to the ■lopo of the industry that cut-throat conpe-
tition -ould be retarced or arrested," (Code History, Part II, p. I7).
J.o p.ssent to this deletion fron the code as approved by the industry
appears to be of record.

Code I'o, 33C', Scrap Iron, ]Ion-rerious Scrap iietals and "Jaste
liaterials Trade, " 'as ap rove." by the Presicient liarch 12, 193^'" on condi-
tion that a report be lado not later tha.n oO da;rS after effective date
"hether su.p:rP.e;aentary code 'vas necessary for the "'Taste Paper Tra,de. "
This report -'as received fron. the code authority on April I7, 193^'-
requestini^ a heariny on a proposed supplenenta-1 code. Hence, assent
to the condition --as iirolied by corroliance thercvith. (Code Plistory p,
19).

Code ilo, 35^, S::all Ai'JS and Ariunition lianufacturin^; Indt\stry
'.vas approved by the Adninistra-tor subject to conditions (rnon^ others)
that the "]iedf;e" clause dealing -ith non-i-aiver of cons ti tut iona.l ri^phts
and non-consent to nodif ications be eliainp.tet. Uritil these conditions
'-'cre assented to "oy the Industry, the code 'Ta^s in a suspended state of
effectiveness as r voluntary code unter Section 3 C^-) being approved only
by the Adnini strator "ilh conc'itions, rnd -jhose delegated authority by
Er:ec-.i-tive Order sp.-cif ically e:r.ccpted the peer to prescribe codes.

-17?-

CocTe L'6, 355> Pi'efor.ioc. Plp-stic Pro.'uctf? Int.ustry, "r.s reproved
"by the Acur>istr;\tor Iirrcli 23, l.^S''' "'itli ". condition tiir.t the ".revisions
"be strj'-oc" conccrnin;; r. "^itin • jcrioc. het'een the filinj^ mC. effective
QpXe of pi'ic3 ter.is. So frr '-.s l:no".'n, indtis'ir;.' ; iGMbers cid not o'bjcct
to tliis st'-^Vj rn'- or£;rniz".tion ^nd opciTtions of the code r;athority lent
tpcit rssent to th-j code r-G r.pcroved --ith tlie conditions.

Code i'lo, 3S2, rho.toGi-'phic rnd rhoto Finishin,;; Industry, r,"_roroved
'.Ic.rch 53 » 1S3^» "l^t 'oy i'iie President -'ith r.n idonticr.l condition r'.nd
pdnilr.r rer.ction of Industry r.s voider code iTo. 339»

Code V.o. 3^5, f.et".il iIon\inent InduBtry, rp a-ovcd hy the Ad:.iinistra-
tor darch 26, IQ3U ith an io.onticrl con:Ution to that for Code Ko, 353,
The; stay \'r.z never lifted, i"o rec'~>rd 0" assent or oljjection appears.

Code No, UOI, Coper Industry, "as approved April, 21 , IS3U and in
the order ver3'- c::tensivc, conditions '-ere plrced.

Assent ■ -as /;ivcn Tj- • :ie:i"bers of the In("ustry, "out under protest thp,t
ne'-' Article VII (i.'rrhctin': Provisions) ^las "inposed" on the Industry, in
letters as follo^'s:

Anerican hotrl Co-pany L'ry 10, I53U

Anaconda Copper .'lininr;^ Conpan;' April 2U, 153'+'

Kennecott Cop'^er Corporation ""Uvy U, 193^

Phelps Dodge Cor-oration April 2U, I93U

Five others on dptcs April 2'!- to ilry '(, I53U

iMpt'/ithstandin,-'?; these 'Protests, the -lenLjers of the Industry proceeded
•7ith the or.;Tanization of their code authority '•nC- acliercd to all of the
'jrovisions of the Coc'e, thus the conditions in thP or'cr of ap'oroval
'icy te consiiTered to~iu.'ve received later i lolied assent.

Code No. kOZ , Under,2T.rnent and 1-Ie;jli^.:ee Industry, '^"s a'-proved
April 27, 153^'- "or the Ac ninistrato'.- 0:1 five conditions. The code His-
tory ;"ives no record of rssent or o'oposition. The code authority '-as not
recO;:^'nizefr u.ntil July 9, 153'-' ^'^c- to difv'iculty of or.paiization due to
rivalry to t'TO sponsorinj^; /;;roups. Hf f ectivoncss o:f the approval on
condition '^rs doubtfrJ-,

Code No, -1-20, Cypru.: Industry, approved ;iay 7, 193-1- ""^7 the Adiiinis-v
trator on condition tiiat the ■■aitiny porioT te deleted under price fil-
in.r; ana, evicence "be suh::itted to avorr„jint_; of hours •"as necussarj'',

No record of assent. Industry ''as so.ie-'hat disappointec". in not
"bcin^; peruitted to \-.se a weitin-.; perioc in connection '-ith price filing,
but no strcmious o'bjection'ir. vie? of study being nade ''oy IJ2A. The code
ruthoritjT- appointed a coi'.ittec to report on averagin,-; o"" hours, and
upon their report the averaging of hours • -as per litter" to renain in the
code.

Code No, ^03, Canc'y lianj.ifapturiiv; Incustrjr, '-rr.s approved Ju.ne 11,
-!;'3'^ ^7 the PresiCent on four conditions to •■hich there .appears no
sr.ccific assent hy the Industry* Only one "condition," that staying

-17 ?~

the 'T.itinf ocrioc., is re-sorted to lirvo cusec'.. rpprccir.'ble invfiistr;'
rerctio:i. Here :-.rn7 nc.foors foi-esn;- thr,t the clDsence of the -/p.itinc
pcrioc. -otilo. heep priccp churnirl^^•, r. phenomenon '-hich r.ctur.lly occurred
(Co'^-e History, p. yO) .

Coc.c To, Uo7, Ci.:;p/r hrjiufrcturin-; In, ^^jtry, --p-E r-:provcc June I3,
153^ ''^7 ^''■'^-- President on four conciti ■^ns. "'hero i?. no rccorc" of r.Esent
to the concitions nor of olijection thereto. A cofo r.uthority -cs
electee' July 2, ISy''- "hich lent tr.cit rssont to the code concltionrlly
rpproved o.s 'bein-': voluntri';'.

Code ITo. US9, Sulphonr.tod Oil l.rnuf "cturin,'; Infustrp, -t.s r.pproved
June 2 J, 1934 h;/ the Afninistrr.tor on the condition' that certain provisions
coverin;-; price filinr end r. --aitin..',- periof^ oe str.ycc".. Industr:" die. not
desire to str,'" "iid hp resolf.tion of th"-" code rutho'^itp on i'Iove:foer f,
153-!- stated thrt the str.y operated to revent efficient operation under
the code anc nade it iricor.si'ble to carr-' out the xirpose of the _T.ct
and requested thcat the stay oe terun" ted. This -'ar. not c-onc oecause
approval of waitin'.; peiiofs ' -as contrary to the ;o!'.ic" 0:^ lUA. The
election and. functionin.^- of the code- r.uthorit;^ --rohaoly conntituted
tacit assent to the code -'ith the condition "but the effectiveness of the
code, arrinst any inc'ivid-cal :;e".iuer of the ind\ir.try ■ dio ii;jht have
challen/jed it as a ""ropcrited code, -rs, r"ouhtf"o.l.

Code To. Us'o, Corn Coo Pipe Industry, -.'as rpproved Aupu.st 7, 153^^
"by the Aduinistrator on condition that a report he suhi.:itted v;ithin %
da:-s on a st'id^r of iinin^ju.i rrtos of pay. This --as not ''.one ■-ithin the
Go c"-ays ll.'it and -^ppp.rently never co'iplied -ith. "The code, therefore,
hecane non-effective 50 deys after its stated effective date "by the
tens of the ofder of apj:.'ov"l, anc. probahly :.vipht have "been lailed in
coxirt PS never effecti'.e bccrusc of lach of c'-eler;ated authority in the
Administrator to aeorove r. vol^j-ntar^" code c'nanj'jed 'd-j r prescri'bed con-
dition.

Code ifo. 5U1, flat C-lasG i:rnu:"acturirif Industry, -as approved hy
the h'lI-G, su"bJQct to tiie condition the.t Section 2 ("b) of Article III
be st-yed. This section provided for tolerance in hours durin.:" a peah
period f.nc. '-.'P.s consic^ere';" p. vitl .rrt 0:' the code "oy certain ::r.nufactu—
rers. The pp/Drovpl "ijih. this condition unassented to, rendered the code
and as such the lilPfl • 'P.s --itliout dele.^'atcd puthorit" to eff ectivel:''
approve. T"-o ie':i'bcrs of the Industry protested. The code coi:ittee
refiised to orp.^nize t'ne coce p.uthorit;- \inder the provisions of the code
until the concition -t.s Ir.ter rcriove'." h" m orCer ter:-iin-'ti?ip the
"ctay", ("hich str;" had not "oeen specif icp.ll" ordered). In tne :ca.n-
tine, the co'"c coMiittee clr.i'iof. the coce ■ -af.. not lc-f>ally effective.
Serious coiroli'^ncc cases hine;ed upon the effective date of this code,
■hich had not "'ooc.n settled at tlic tine of the Schcchter Decision,

(b) AGZTI]hEhTS

A representrtivc nufoe:. 0.' liscellancaous oi-dcrs of a;oprovr.l, or
agree lonts, lip.vo "been revie-.'od p.s fol'^.o-'s:

(r.) i\;:ro.c:\rro.tr ".y tlic Prorif :iit r._""o:-oYin ; laljor provi-
sionr of AAA coc^.cs,

(ij) Ai'-rcr-ients on ■_;-":'ti"ll;- cr-pletoc", coi'.os, r.llier- to
the Cotton Tortile In:'iicti-7. -"'iicse -cvq . ov cert 'in ■.•rovisiona '-'hich.
receiver', the Prci'^iclent' s fornr.l ,',.yn:.-ovf 1 in r'.c.v.:,nce o:'.' a/Teeiient upon
the --hole coces. Sti.ch p;irtiP.7L ■'v.Tc'nn.ontr. -.•ere :\r.:'!.c siilDiect to the s?ne
conditions rs r-^;;.lioc. to the Cotton Ter.ti'^.e Code, '.,'ith the "inrl
p.p'crov-",! of the Cotton Te:;tile Code tncse con'",itions -•ci'o r.utonf.tically
Br.tisfied.

llo n-fiiinistrr-.tive ("iff ic\".ltieB or otho:? interruptions to the
re;5,-al?,r procec'u.rc. in h^^ndlin:;; these crsep-. , d\ie to the r-' i cC. conc'itions
of r.pprcvr.l, rre recorfcd.

A Ir.rge nuAer of orr'crs of ap roval of r:iend:'.ents to codes -'ere
revie-,7ed, rnd ver'- fe\' conc.itionc, in the orders of ry-jTovdl found. In
I'^enerr.l, ariendnents '-ere r.ot svihject to presr/arc for r,_.prov".l. They
"ere so c^'^refullp end cph.ly consider jc tlir.t chr.v;n!. rs required '"'ere
:-!r,dc cnC. asscntec, to prior to prcsentriion for r;;p:-ov-l.

Such conditions rs, r-jpe^rec" 'ere in the .ir.in siMple (c_;rv;le sho"'n
'bolovO.(*) f'nd not vitrl to the Indus^'ry, r:.v. •:orcover, oould oc pres-
crihed -ith fi\ll le;;;r,l effectiveness j"" rc.^ion of the provifi-ions of
Section 10 (b) of the Act, "nc tl'e dele;;r-tion of those po- ers of ::odi-
ficrtion to the Adninistrr.tor rnd Ir.ter to tie 11TP3. specifically hy
Sr-ecutive orders ITo. 3'_^hj>~A rx.C ITo. Zo'^'^ res"" ectively.

(c") OTsIER IJlIO.l ADhlillSTlAflVI ^.CTIOITS

A vast n"ujil)cr of ninor ;:d;vinif.;trative rctions -"-ere acc«^nplished
"by approvals of tho Adiinisti^rtor, trie National Inc'istrial llecovery
Ijoard, the Division Ad':'.i;.-iistrrtors, rn;' the Assistrnt Ach'.inistrative
Officer for Code Axithorit^' Bvi.dpots, for r.uch tatters as approval of
nethods of code ruthority selections, co'fe avithority elections, ■'oy-la'"-s,
trac^c prrcticc comlrints' co".r:ittces rnd pl.^ns, juc/":cts, etc,

A larfie "proportion of tliese a/TO"i-oval'" "-ere raihject to conditions
in order to ac -jvist the doc\i:ients to H.A "■olic;^. The for"i a;-/ recuire- '■■
nents for these focviients 'ere ;;ro"':ul rted in ad:ii-'istrative orc-ers
fron ti","ie to ti;ic,,anc" "tho ,ar_thority to i rpose conditions -as inherent.
The i.iroosition of conditions '.'a'-, in the vast .irjority o:' c"ses, to
pronpf.y "■leriit the functio'nin;-; of the ad/rinistrative rf;:cncy involved,
'"here only r"iinor adjust 'ents to "olicy "'ero '~ c^c^^c^- neces."-ary """dch "ould

(*) Enarole: C.ncnt Infastry A: icncf ,„nt llo. 1 r;.^ roved ha-' 11, 1Sj5 hy
IT.I.h.B. svfo.j ct to conditions:

(1) Tnat a trrd.c prfcticc s^l'.linp :"il.. a"p"lica'olc to shipy'.cnt
" to U.S, CT0Vcrn"K."nt rt 1; ."nf .jrant rrtcs oc stayod to rfford
ti K. for further stxidy.
(r:) That Article covcrinp non-consent to :odif icrtio"n be dctictv-d.

c,;:UU

-175-
not prevent pro;o,.r functioni;"'.;:?.

These cnn(ritionr,l orc'.err oi r;..provr,l ".rcsontuc'' no t iff iculti^vs in
^:cn^.rr]. , er.cc'pt in obtrinin^'j cvic'.onco of s^.tisfrctory coiplirncc •■ith
their terns •,'horo further r.ction ".rr.s rcoTiirec".,

SfclrU

-17c-

chapxeh IV

YfflAT ATTEMPTS .jEHS MaIE TC 02TAU aSSZNT Ci' CODE PRCPGITENTS TO

GGJDITIGNAL C::Dr:RS C? iiPP:X.""'iiL'-

Prior to the condition&l jvoyirovals there a-imerirs to hpve been, in
general, consideratle effort in most codes to brin,^ them into ccnfcrmity
with policy, "but due to the pressure to ,?et codes approved, in-optience
^ith the last adjustments -^fter T)rior extended delays resulted in abandon-
ment of efforts tc obtain isscnt to these last chane;es, deletions and
additions and the practice of taliini' care of then by conditions imioosed
in the orders of a"onroval.

In code No. 1, Cotton Textile Industry, and code Ho. 6, Lace Manu-
facturing Industry, effort w?is made and assent to adjustments received
before the effective dates of the codes. In the other codes condition-
ally apTJroved, which have been reviewed, there seens to have been little
or no attempt to obtain prompt assent of the -nroponents to the conditions,
in many cases months elapsed, and in some cases no attempt ••'as made to
obtain assent.

9844

-177-

,.KAT VSRE THE MOST FREQ^UZV^T TYPIS CF CCCDITICNS Ii: C:OE:iS OF aTFHGVAL-^

The Orders of AiD^ircval of 557 Codes -'ere exanined for conditions.
Of these codes, 261 were found to contain froa one to fovx or five con-
ditions, some more, a roU;3;h examination of many r.ore sup'olementery codes
ax)t)ears to sho'^^ an even greater orcportion npnroved conditionally, post
conditions were of only routine inoort in their effect upon the conduct
of their business h;r members of the industr">'' concerned, but a number
'-'ere of vital import and aiio-unted to forcin-- a code upon the industry.
(a tabulation of details of various tj^pes of conditional orders is given
in Appendix "3" hereto.)

The most frequent tj'pes of conditions were;

(a) In early codes, the condition thot »n administrative
body be created. This led to the code authoritv.

(b) Condition that the by-laws of the -r)artici;oating
as"=ociation be changed to correct discriminatory
Torovisions.

(d) Condition that attempt to interpret or modif,y
Section 7 (a) of the Act oe olimin-^ted.

(e) Condition that provisions for classif ic-^tion of custom-
ers be stayed pendin-: investigation.

(f ) Beginning about Feoruary 1, 1934. Condition that waiting
period between filing of nrices and effective date
thereof be stayed and hearin^r held thereon.

(g) Condition that homc'-'orV be xirohibited and a study of
same made.

(h) Condition that hearing may be held, at O'otion of
Administrator on any provision and subseauent
orders have effect of condition of ar)"i")roval.

(i) Condition that a "hed.-'e" clause reserving consti-
tutional rights if the code be modified -as to be
deleted-.

(j) Condition that provision prohioitin.j couT'^.ns or -ore-
raiums be stayed.

(k) Condition that code authority submit recommendations
to adjust hour and wage rjrovisions to conform with
other codes.

9844

-178-

CiiAPTZR VI

TTiLj EECsssiTii^G or ■oiiiiTisTrLJJici: "::?■!: suitj.j by coipitioiial

0.RDSR3 Qj? ApPriOVAlT

The principal nocessities of condition?! orders of a-o iroval as used
T/ere to expedite the ari'iroval of codes '-'here sponsors -»cre tard;'" or
difficult to reoch in assenting to chanfes, or e.dverse to the changes
which established -loolicy required.

Many codes v/ero suhjectetl to procrastin.-'.tion so ni^rhed as to make
it ap"iea,r they nere heing purposely delayed by the sponsors by the de-
vice of including provisions rcougnrnt to adininistration -policy. The
Administration ^-^^.s loath to specifically utilize Section 3 (d) of the
Act and the alternative selected nas ,fehe conditional order of ap;oroval
as a supposed means of presrerving a voluntary status under Section 3
(a) and force a code on the stalling indastry.

There is verbal evidence th::.t some conditions of rroproval 'lere in-
sorted at the instance of sponsoring con littecs to taJ-ce fron those com-
mittees the onus of failiu-e to include or e::clude provisions co:iforming
to the desires of certain nenbcrs of their industry, but 'vhich the IRA
rrould not -oermit. In other nords to "save the face" of the committee.

9844

-179-

GKAPTin VII

\ rtlAT ZVIJBI.'Cl': 0? COII P LIAITCE OB- UON-COuPLI/JICi: UITH coiypiiioiis
OF APPI^OVAL .U^.: 10 IC ECUliS? _J7il4T TL13 IHL LZGAL Ili.'ZZCT 0?
r;01T-C0I.i?LIAIIC37

In the cases of code No. 1, rjid code ITo. 6, heretofore discussed,
the conditions were incorporated in the code or fully ST'.tisficd end con-
iTlied nith.

In ot?ier cases the coip^lirncr: ivr.s usurll;' vcvr trrdy uhere action

07 ir.dustry r;^cncics rr:^ ronuirod and even thou-'^:h '■ ti,.ir; linit iras net,
corn-^liaiice '-'.s often not coj-i:)lcto oeforo that date, (As instances zee
codes llo. 12; ^o 14 rnd ITo 493.)

In n''jjnerous cases a condition of a^r^rovpl required rcTorts on hours
and '^a'iCs frcn all raemoors of the industr''' vhich vras not complied nith
generally or fully \Titliout strcnous effort on the part of the deputies,
once the code \r-r 6 r.p-irovcd.

In the cases of conditio::? in the orders of ajriroval for ■ninor actions
couolipncj \~as usually •ji"'^'-!""'*^ o^: satisfactory adjustments nade and very
little difficulty erroerienccd.

The luf'al effect of non-coiv^lf-'nce nith conditions in the ap'oroval
order for code v;t'S in .-general to render those codes non-effective in
Liany inst?Jices h.y the v£:ry v;ordi;ig of the order pnd in many instances 'rhore
approval "oy the President vao to render such codes in fret pr'-scribed codes.
Liany conditio^:i of r.-j'-iroval ca^rricvl tine li^nits for the carrvin£; out of the
condition riid th code ^ ■■::ere ler^ally effective u; to that limiting date,
"but thereuoon "because ineffectiv''. u:itil the condition ■^.•as satisfied. Still
other codes vere approved suDJect to the condition thr,t all nciahers of the
industry inaJce reiorts fron tiiac to ti ic. Such codes effective at the start
lo_';all/ la':)sed into a non-effective stn.tus nncnevor one member of the indus-
try failed to render r re'.'uii-od re -)crt.

Many codes after JmurTy 1, 1934 Trero a >iroved "by the ^vt'jn 'nistrator
or "by the ". "IHA v.'ith conditio-^s vitallv advei-oO to sono or all the nem'bors
of the industry, rrithoTit Industry rssent. The effect "ps that the. >, codes
'-^ore, in f^ct -orcncrioed, and as such the A'ininistrrtor and the "illllA. nere
witliout dele-y-'.ted rinthurity to a-.-'-.irovc. Sucia codes wore non-e"f ective
legally.

9844

-lar-

O-'AI-TZll VIII

COULD TlIE DSSIHED C0;..DI TI0a3 "AY'S 3BEK IITCOH?'' HATSD
IIT TrZ CGD^S T:i:;,^ELV53 V^ITIjJJT UHDUE DI?riCULTY?

In a very large m.^jority of cases tlie conditions imoose;''. by
t'lB orders of approval of codes were of a miner nature and with
very little furt'ier effort assent to incorporation witliin tie
code itself could have "been read.-.ly obtained, definitely pre-
serving the voluntary nature of such codes and obviating the danger
of legal non-effectiveness tiirou^;,.: failure of compliance.

In many other cases where the conditions required were of an
important natiire and assent not obtainable, or the industry was
using those rejjaired provisions to stall off approval, there was
still the avenue of the prescribed code under Section 5 (d) of the
Act. There is n doubt but th;:.t Section 3(d) should have been
specifically used frequently. Such action would !:ave greatly
speeded codification and removed the tendencies of many industries
to stall off approve.1. It would also have brought better cedes in
the later stages of codification.

0844

-lai-

CHAPTZR IX

PRGI.i M EVALUATIOl.: 0? TEE SXPEEIEl'TCE IRZLaTED ABOVE iTHaT CO'SSITJCTIVE
SUGC-ESTIClvS CA1\T 3E liADZ TO C J 11)2 JNEV; 'LZGlSLj^UOl^ AID • ^:.C3^£5 PLaKS ?GIl
ADMIITI SmA-JlOrT TCUCinKu UPC-Iv TEE U3~ G? COV .SITIGlJ.JiL C::J)EriS O ff .^paOVAL ?

The principle r^s set frrtii in Section Z{i) nx tae Act fcr v^l-'ontarj'-
codes is "believed to De so^jjid, namel:'- t^'iot th3 President should liove the
po\7er tc impose conditions tliat must be met in a volimtrry code -is a
requisite precedent to his opprovol "out the wordinfi should have heen so
clarified as to indica.te that every code approved as a volimtary code was
definitely that, rand that it should contrin nothin,?- not actually assented
to, so that in every such case necessarily'- a clean order of ap'iroval could
have heen issued, P?^ilinr: assent the required eliminations, additions or
alterations should have "been made in the code itself, industry invited to
assent thereto, and failing to do so, the code should hrve hecn promijtly
prescrihed under Section 3(d) of the Act.

Much confusion as to legal effectiveness would thereoy have heen avoided
at the time of approval cr suhseqn.ent thereto.

The provision under 3(a) of the Act sho'-ild he rei7orded so.ne'-hat as
follo^^s:

"The President, as a r:?q^uisitc precedent to 'ipproval
of anj"- code voluntarily a iplicd for, may require the
elimination, addition or alteration of such provisions
therein as he deems necessa.r;'- for the protection of
constiraers conroetitors, employees and others in furtherance
of the public interest, and any such code voluntarily
applied for shall, upon full assent when altered as so
required, be approved as a voluntary code. In the ab-
sence of such full assent of the proponents, the pro-
visions of Section 3(d) shall arpply. The President
subsequent to his approval of a-n.j vclontax;/ code may
grant such exceptions to, or exemptions from any pro-
visions .thereof v/hich nary be apvlied fcr, and as in his
discretion he deems just and nccessar^r to effectuate
the policy herein declared,"

9844

-182-

Pj\:.T 7im

APPEJDICES

3844

iiPPZllIDIX Ho. 1

iTi:3:[pL0iGD souHc::s oi' ijni-'jij. I'oii ?u:iTH-;ii study.

The Coac Histories shonld cont;'in nuch v'^lur'.blo inf ornatioi on con-
ditions in the orders of f-o u-ovfl. Chpr^tor II, Section D-4, is allocated
to this subject "07 the st.vndfrd Code History Outline.

Administr- tive Ord.^rs, includin • the seritjs und^^r the diff.jrent cod^s,
sho-dld show conditions thr^t 'rere included in r-.V'- orders issued rs codo r,d-
:iini3tr"tion rets in conjunction ^^^ith the proiroval of stn.ys, -ijaondmonts ,

oxern'otion-; r,nd excc-oticns, clpssif ictio -.s, inilinvs, etc.

Ajxndi:: '"0. 2 outline, s tho subject of this prrt of the study in
detrdl and Till he found to su,j-:e3t hrer^.s for further res69,rch.

9844

APPEIOIX 1:0 . 2

COKDITIOiliiL OEDEHS OF APFHOVAl

(Outline) ! . ■•1-;.:

Ajjpendix No. 2,

FART I

Conditional Orders of Approval of Codes, Agreements
and A"iencu'nents.

1.0 Introductory

1.1 Statement definint-^ subject and field •embraced
2.0 Basic sources covering subject

2.1 Provisions in IIIRA

2.11 Powers conferred upon tlie President

2.111 Concerninti' codes volvuatarily applied for

3.112 Concernin;:^ codes imposed

2.2 Delegations of pov/er of approval made to Administra-
tor and the Nllffl

2.21 Authority for delegation

2.22 Hensons leading to delegation

2.23 Executive Orders making delegation

2.24 Reservations in delegation

3.0 Use of conditional appi'oval

3.1 By the President

3.11 First code for \?hich used

3.111 Purposes of conditions

3.112 notification to proponents

3.113 Portion of industry actually affected

3.114 Evidence of industry assent

3.115 Reaction of industry and labor

3.12 Other codes for which used that presented
unusual circumstances (3.12, 3.13, 3.14, etc.)

3.2 By the Administrator and NIBB

3.21 First Code for which used

3.211 Purposes of conditions

3.212 Notification to proponents

3.213 Portion of industry actually affected

3.214 Evidence of industry assent ,•

3.215 Reaction of industry and labor

3.22 Other codes for which used that presented
unusual circumstances. (3.22, 3.23, 3.24, etc.)

4,0 Development of Policy

4.1 Policies announced in Executive Orders, if ?Jiy

4.2 Policies announced by the Administrator and IJIRB

4.31 Use of provisions of Office Orders Wos 63,63A
and 63B, January 27, 1934

4.3 Circumstances attending first use of conditional order of
approval

4.31 Facts presented and recommendations

4.311 By Division Adninistrator

4.312 By Deputy

4.313 Reports of Advisory Boards

4.314 Legal comment
9844

-185-

4.32 Considered "by whom and analysis nipde

4.33 State:ient of policy, if made

4.4 Policies, if any, annoiiiiced on subject by policy groups, viz:

4.41 Policy Board created by 0.0. 7f35, Sept. 16, 1933

4.42 Policy Board reor.^^ani-^ed by 0.0. ,,-55, Jon. 6, 1934

4.43 Policy Committee created :b'j 0.0. #58, Jan. 12, 1934

4.44 Policy Boards created by 0,0. 7f7-i, llrr. 23, 1934

4.45 Assistant Administrator for Policy under 0.0. 7f83,
April 9, 1934

4.46 Advisory Council created by 0.0. 7f89, May 21, 1934

5.0 Discussion of legal requirements dictating necessity in orders

of approval for certain conditions
6.0 Substantive aniilysis of all conditional orders of approval

(Codes - Amendments)

6.1 Frequency of use Codes Amendments

Total orders of ap"oroval to

Kay 27 , 1955 ■

Without condition

Containing conditions

6.2 Classification of codes as to groups where conditional
orders of approval were most frequently used

6.3 Most usual forms of conditional orders of approval in
successive stages of code raaicing.

6.4 Conditional orders of approval in specific cases which
industry or labor regarded as altering code vitally

6.5 Evidence of degree of industry assent

6.51 Specific assent

6.52 Tacit assent

6.53 Opposition

6.6 Types of conditions imposed

6.61 Hours, T/ages, tolerances, other labor provisions

6.62 Administration
6.53 Classification

6.64 Tracie Practice

6.65 Reports required

6.65 Control of production and allocation of business

6.67 Price or cost accounting

6.68 Other

7.0 Substantive Analysis Agreements under Section 7 (b) of the M?Jl
(Brealcdown to be developed upon examination of data.)

8.0 Evaluation

8.1 Justification for use'

8.11 To avoid approval delays

8.12 To override opposition to established policy

8.13 To protect labor interests

8.14 To protect consumer interests

8.15 To protect industry interests-

8.151 Small companies

8.152 Lai'ge companies

8.153 Overlapping industry interests

8.16 To avoid illegality

8.17 General disctission of other reasons

9844

-18G-

8.2 Hefiction oi industry or lobor

8.21 Com-Dliance

8.22 I'Ton-compliance

3.221 Neglect

3.222 Opposition

8.223 Challenge of authority under voluntary code
apTolication

8.23 Sn for cement, if any requ.ired

8.3 Discussion of coraplisnce or non-compliance with the conditions
imposed

8.31 Stays, modifications or terminations of conditions
imposed.

8.32 Subsequent extension of time limits specified

8.33 Efforts of N.H.A. to enforce compliance

8.34 Effects of non-compliance

8.341 Legal effect upon code itself

8.342 Effect upon industry

8.343 Effect upon labor

8.344 Effect upon consiKier

8.35 Effects of compliance

9.0 G-eneral conclusions and constructive su^^rjestions
10.0 Bibliography

(Partial sugf-;estions)
IIIRA

Exec. Order if6175
Exec. Order 7r6543-A
Exec. Order 7f685S
Exec. Order -^'6205-3
Exec. Order 7f6750-C
Exec . Order. vr6949

Administrative Orders in Code Hecord Section
Minutes of meetings of Policy G-roups
Vols. II, A and S of codes involved

9844

-1S7-

FART II . Appendix Ho. 2.

C-onaitio?ial Orders of Approvrl - i.iinor Aclministrativ-! Acts.

1.0 Introductory

1.1. Strtereut dofinin.- subjoct and the field emtraccd
2.0 Basic Sources covering suliject

2.1 Administrative actions setting up cooe nuthorit^ conceiot

2.2 Provision for ac'mini strati ve approvals and delegations of
poY^er to apnrove indicating any limitations of povers

2.21 Method of election of Code ^iUtnority

2.22 Election of Code Authority

2.23 By-Lav.'s

2.24 Trade practice cor:.pl;dnts plan aiid committee
2»25 L:-.bor complaints find disputes plan and committees

2.25 Stfiys and exemptions or terminations thereof
2.27 Bur'gets (treated "by Code Autnority finance Unit)
2 •28 Price systems

2.29 Cost Systems

2.2J. Ti;;;.3 extensions for required actions

2.22 Other code authority agencies
',2.23 Standards of safety nnd health

2.24 Lists of ha^arc'ous occupations

2.25 Applications for increased capacity
"2.2^ Plans of allocation of production

2.27 Classification of custouiers

2.28 Lowest reasonahle cost

2.29 MDdal marlrjp
Etc. Etc.

3.0 Use of conditional approvals ( erxludin,'; all instances involving
correction of unimportant clerical errors)

3.1 3y the Administrator

3.12 First importaiat admi.iistrative order for which used
3.121 Purposes for vrhich used

3.1211 Legal re';:uirem3nts
0.1212 Administrative requirements
3.1213 To conform to established policy
3,1314 To avoid delays
3.1215 To provide for further study of
conditions imposed
3.132 notification to applicants

3.123 Units affected

3.124 Evidence of compliance

3.125 Reaction of miits affected

3.126 Discussion of effect of conditions

5.1261 On industry uiiits affected

3.1262 On labor

3.2 Discussion of other tirp^ca.1 cases of' use of conditional
approvals by the Administrator, by the HIHB, or by Division
Admi.iistrators segregated into the following headings: viz:
3.21 Lethod of election of code authorities

3.23 Election of Code Authority
3.23 By-Laws

9844

-18:-

3.24 Trade practice complaints plan and committee

3.35 La"bor complaints and disputes plaii and committees

3.26 Stays and exemptions or termination thereof

3.27 Budgets (treattjd b.y Code Authority Finance Unit)

3.28 Price systems

3.29 Cost systems

3.21, Time extensions for ren_uired actions

3.22 Other code authority agencies

3.23 St'Uidards of safety and health

3.24 Lists of hazardous occupations
3.2:5 Applications for increased capr-city
3.26. Plans of allocation of production
3.22 Classification of customers

3.2.8 Lowest ?Leasona"ble cost
3.29. hodal mar leap
Etc. Etc.
4.0 Development of Policy

4.1 Policies announced hy Administrative Orders

4.2 Discussion of policies, if any, announced "by the various
policy groups

4.21 Policy Board created oy 0.0.7f35, Sept. 13, 1933

4.22 Policy Board reorganized hy 0.0. #55, Jan. 6, 1934

4.23 Policy Committee created "by 0.0. 7f58, Jan. 12, 1934

4.24 Policy Boards created "o:^ O.C. Tf74, Mar. 26, 1934

4.25 Assistant Administrator for Policy under 0.0.if83,
April 9, 1934.

4.25 Advisory Council created "by 0.0. #89, llay 21, 1934
5.0 Discussion of legal requireiaents dictating necessity,'- fbr

conditions in various orders of approval
6.0 Substantive analysis of all orders of approval of 25 selected

codes

6.1 Frequenc;' of use of conditional approvals

Total orders of approval considered "

Without conditions ■( *)

Containing conditions (*)

5.2 Classification of administrative actions where conditional
orders of approval were most frequently used.

5.3 Most usual types of conditions imposed in successive stages
of NSA development of Code Administration

6.31 Hequiring deletions

5.32 Requiring material amendment

6.33 Requiring future actions (Other than documentary

alternations) "

5.4 Evidences of compliance with conditions of approval

5.5 Evidences of op;,josition "by industr;.'' to conditions imposed
7,0 Evaluation

7.1 Justification for use

7.11 To avoid delays in "beginning operation

(*) .Required t^'po graphical corrections not to "be considered as
conditions

9844

-189-

7.12 To override op;oosition to established policj'

7.13 To protest lator interests

7.14 To protect cons\iinar interests

7.15 To protect indastr;' interests
7.1E1 Small companies

7.152 Lai'ge cor.ipaiiios

7.153 Overlapping i.iuustr:/ interests

7.16 To avoid illegality

7.17 G-eueral discussion of other reasons

7.2 Reaction of industry or labor

7.21 General discussion

7.22 Compliance

7.23 Kon-compliance

7.231 Neglect

7.232 Opposition

7.2/4 Eniorcenient (if a:iy) required

7.3 Discussion of compliance or non-compliance with the
conditions irripoaed

7.31 Stays, modification or termination of conditions
imi^osed

7.32 Extension of time limits specified
7.53 Efforts of iJ.H.A. to enforce compliance

7.34 Effect of non-compliance

7.341 Legal effect upon code administration

7.342 Effect upon industry or industry members

7.343 Effect upon labor

7.344 Effect upon conswaer

7.35 Effects of compliance

8.0 General conclusions and co^.structive sug.gestions
9.0 BibliOi^raphy

E:::ecutive Orders

Administrative Orders (X series)

Code Af'jninistrative Orders in Code Record Section

Deputy Eiles

9844

-190-

APPEiDi:: iTo. 3

Details of Various Tj/nes of Conditions in

oisrr.s 0? .app^.oval

Coverin,'; ?11 Bo.sic Codes of Tair Co'toetition

984-^

-191-

lPPROFi:D COjDS

ITo, Industry

1 Cottoi"'. Textile Industry*

(Condi tionall]'' ?;o"oroved
o;- the President 7/0/33)

*1T0TE: nxecutive Ordc:r
of Jiil;^ 16, 10u3, go.ve
fi:\r.l r;oproval to the
Coce, t?,s amended rith-
the a.ssent of the In-
dustry-, fiid satisfr.c-
tion of such of the
conditions as rrere
finally reqriired hj
the President,

coi'DiTiovs ir or.DZF. or approval

(1) Li litations on use of productive
machiner:/ not to appl;!" to tire
yarns or r'ahrics for rulDljor tires
for 3 ne^l-s

(2) Plojining Co;Tiittee of Industry uill
suDuit ouestion of e:xplo'/ee pur-
chase of homes in i.iill-villD<2;es,
especiall;- in the South, to Acu.iin-
istration hefore Jan, 1, 13 J4 looh-
in;2 to'.vard eventual employee houe-
oraiershi-Q

(3) Ap^oroval of minirnurn n.-.ges — suhject
uc" "be reopened if and as con-
ditions iiiprove.

(4) Office e:.r3loyees he included in
the oenefits of the Code

(5) The existinfj eziounts "02'' "./hich "rages
in the hi^^her-paid classes, ut to
iTorkers receiving $30 ■■ler yeelz,
©::ceed i.7at"es in the lovest "oaid
class, shrll he na.intained.

(5) Tine pxid. one half to he oaid in
case of overtine for rep:\ir shop
crens, engineers, electricinJis
and '.Tatchins crens

(7) Cleaners and outside '^orhers e-:ce-o-
ted u:atil 'Pla-nning and Supervisor;-
Cotiittee suhmit schedule of "lini-
muji -nd nsjiiviuia hours Jan. 1, 1334

(9) hinimun nage mepjis iiininui.i rate of
pa,;'" whether, con-iensated on a tivie
rate, piece T/ork, or other hasis

(10) iiinount of T'orh of employees after
July 1, 1933 shall not he increased
hecpuse of aininuia vrages

(11) Any person not consentin-; to Code
shall he given hearing and a teiipor-
axir stay of lia.Dilit-'' -oending such
hearing

(12) Approval limited to 4 noiths Tiith
right to ask for modification or
renewal

(15) Adrainistration to he given ri];ht to
ap-Qoint 3 memhers on Planning o:nd
Supervisory Co-xiittee of Industry,
'-without vote

9344

-192-

ITo.

APPP.OVTD C0D2
Indust"-'y

co'^iTioi'3 r^ cr.DZ". or .^pp^.oyal

Uool Te::tile Industry
(n-n-oved lJ2&]'oo b^
the President)

6 Lace Ilfg. Industrj'-

(r;Toroved C/14/33 "bj-
■ tlie President)

12 pilot ogra---)liic Lf,> Ind.
(ar-. roved 3/?,9/?5 "bj/-

tlie President)

13 pishing Tachle Indxi-stry
(a;To roved 8/10 /:>3 t;-

the President)

14 ?.a""on r^id SjTithetic Yarn
Producing Industr-/
(a;iproved 8/26/33 D7

the President)

19 :Jall Pa-oer ilfg. Ind.
(cTToroved 9/7/33' "b--

the President)

20 Salt Producing Inclustry
(a,;roroved 9/7/33 'bj-

the President)

23 Underwear a:-id /J.lied
Products '. :fg, Industr;-
(aro-oroved 9/18/33 "b-^

the President)

24 3itu;iinous Coal Industry
(a;^proved J/lO/33 137

the President)

Industry co:iriittee to te created as
a Planning and Pair Practice agenc;?';
5 representatives of industr" ?Jid
3 vrithout vote for Adiiinistration

One condition. 3-'"Xie X-j-r^e as Code 'Jo.
3 aoove.

One condition, Sriie t;'roe
3 a'bove.

Association 37-La'"'s to ^•do. pnended to
contain.no restrictions as to Asso-
cia.tion "lenoership,

?.e"oorts required to oe sutaitted \rj
each erroloyer as to Tropes, hours, ?Jid
otherwise as the Acininistrator na;''
recni-ire

One condition. Sane t:'*oe as Code ITo,
3 atiove.

One condition. Sane t'^^ie as Code ;"o,
3 a'bove.

Sta"/ of 14 da"'s for nanufacturers to
sho'7 cr?j.se Thy the-^ should not oe in-
cliided ui-'.der the Code (Sec. 1(c) of
definition)

(1) Soxie t"~oe rs Code ''o. 14 above

(3) Srne t^^ie as Code "'"o. 3 above

(5) ;;ininu:i rates not fi::ed in Schedule
A nay be a.-^;oroved or "rrescribed
•orior to effective date of Code
b'- a supplenento.ry Order.

(4) AtterTot to interpret Section 7 (a)
of the Act i;i Schedule 3 (Code Sec,
(b) of Art, Y) stricken out

(5) Clerical rearrc?jigenent of li' cita-
tion of definition of enplo^'"ee
-placed i;-. Art. Ill instead of
Art. II

9844

-193-

;j'PnOv"D COD"
Ind-.-.tr:;-

30 :D:.Tior3 i:' cv-^r: c? i-PP~o"7;.Ji

25 Oil learner Industry
{o-yoTOVcd. 9/lC/5r; 07

the p-^esiclent)

26 C!-asoli:^e Pimp i.ifg. Ind.
(a-xjroverl S/lP/3o ■by

tlie President)

23 Trr-HBit Indiistr;"-

("."7oroved 9/1.': /oo 1)7
the Preside-it)

CI Line Industry

(ao"iroved 10/0/j£ "by
the P:;esider.t)

33 IJoiler Kfg. Industr:'
( ap-oroved lO/o/oo "b;;-
the p-' osideiit)

59 rn.r:! EcTd"oraeut Ind'-astr;
(ayoroved 10/3/33 07
the President)

41 TTonen* s Delt Indiistiy
(s,-o-oroved 10/3/35 h;'-
the President)

4-3 Ice Industry

(a;Torovod 10/3/35 07
the President)

44 hoot -nd Shoe life* I^-<i»
(approved 10/S/o3 07
the President)

43 Silh Tc::tile Industr7
(a-r-;roTed 10/7/35 hv
the President)

One condition. Srne t'-oe rs Code 0,
3 ahovo.

Or.3 condition. Sane t-.^^e e.s Cod-e 7o,
3 ahove.

(1) 'lorhijif: hor.rs in contracts "hich
na7 he renewed, shall not "oe in
excess of the ninir.mn rec-u.ired
137 the code

(2) Sane t3'-'oe as Code j'o. 13 ahove

S?ne t""oe rs Code ho, 15 cahove.

One coridition. Sane t-ppe as Code :.'o.
24 (4) nhove.

One condition. Snrae tvme as Code ho,
P4 (4) ahove.

Ore co"i''ition. Sarae t'^pe as Code ""^o,

IS aho-'ie.

One corJitio'i, Sane t'^-je as Code '.'o,
3 ajoV'j,

One co-:dition, 3r"ie t;~oe as Code ho.
24 (4) above

hiniiron ".".'age to rp'oly to lowest class
01 v.'orkers onl;'', e::en-otin;^' shilled --nd
peni-s!:illef' vorkers.

9344

-194-

AiTP-O'CD com]

Indus t r;;'

0--:^tior,l I.'f;> Industr"
(r.-oproved 10/9/3" 07
the President)

Unorella I'fc* Industrj
(r.pproved 10/9/o'6 ^-r "
the President)

:>,r].:inf; Hevicos Industi-^
(cvD-oroved lO/.'O/oC; 07
the Pr^esident)

Dress i.'fg. In'Justr3''
(r-pproved lO/ol/'C "b;'-
the President)

£5 Advertising S-pccialt".-
•■ Ir.dt1.Etr7

(a-'Toroved IC/ol/;^; h:'
the President)

G6 Tc;- rnd Pla7t]tin;-;s In-
dus tr"

(rpr roved ll/4/'io oj
the president)

96 -Jv.f: nnd Polishing wheel
Industr7

(f.ro roved ll/4/3o 1)7
the President)

105 I;r,chine Tool ,-nd '.''OTQiriQ
ilc.chiner" Inditstr:"
(r;Toroved ll/o/r'o "b^"
the President)

113 Cotton Cro.rnent Industr^^
(r.-o;.)roved ll/\7fc:. 07 '
the President)

coiDiTioirs i;: croz?. oi app~.o/al

One condition, Sr.n9 ti'-ie f.s Code l!o»
3 rhove.

Ovie condition. Sr.ue t'^r^e r.s Code ".'o.
o n,"oove.

One CO idition. S-'ie t.-'^pe rs Code :'o,
5 r.bovo.

(1) ha-^^e scrdc in .estern r.rer^. (Art, ''/I,
Sec, 5) stewed uiatil further hep,r-
in~

( ?) Pendin;'; sr.ch sta-' niniiuin rate shall
he $14.00 (Art, IV, sec. 7)

(3) Ap'olication of code str/'ed -.s to
nanufacture of dresses in chief of
cotton content rjitil such hearing;

(1) '.la^ie a-nd hour "orovisions shall oe
superseded 'oi' those of the Print-
in." Indtistr'' v.'hen a-rro roved

(2) Spiae t;^-ie rs Code 'fo, 3 aoove

One co:\dition.. Provisions for ti:.ie and
one-third for overt ine staged tuntil
Januar-'- 1, 1954,

One condition, Sta" of (Art, VI 1, Sec,
a) "orovision attervotin,'; to fir: orices.

One condition, f.eservation of right
on "evievr to disapprove or nodif7 cJi;'".
action taJsen "oy the sur)ervisor7 oQexic"

(1) Seto v:p rociuirenents. for acceptahle
Strte prison laoor Codes

(2) Srne t;~oe a,s Code i'o, 64 (l) -^.bove

-1913-

IIQ

j\pp~o\^:i) coDi;

Indttstry

ITersprint Industry
(r.-TOroved 11/17 /:;rj '.r^
the P"esiucnt)

1.10 P?;oei- rjid PuZ.p Industry
(oriroved 11/17/33 ^3-
tlie president)

inl "otel Indvi-str;'

(a.-y-) roved 11/17/33 07
the Pres:lde::t)

124 ; 'ot ion Picture industry
(rn-^roved ll/:;7/33 h;-
the President)

l.?5 Uoh-olster" and Ijraoer"
[je-:tile Industr-r
(a-ynroved 11/S7/33 Td"/

the President)

CO Di^±'io::3 I.' cnz-i or app:.07al

Provision r.ir.de "or hep,rin;_^ for detorrin-
li-iQ r'derun.c'^ of rinir-ian vrr-es cstahlirjlied
"d;- the code.

Ore condition, Sa.-ie t:-r,e rs Code :^o.
11 D r.'oove.

(1) S-.Me t---ie r.5 Code I'o. 24 (4) Xmvq
(:) S-'UC tyoe -3 Code I'o, IIC nljove
(3) r-arthor order shrll constitute r.
nodif ication of the Co6.e,

(1) S''.. ;n t:"- 10 as Code "'o. 103 pfoove

(.-') !"li.",h-t of re;iov.:il of any ;:e:.ioer o:.!
the Code imthorit""- rnd 3111)3 titi\t ion
therefor

(3-) ".i.;ht to insure ::!ro-oer re-T'esen-
tntion of th-e emloyers on the
code ruthority

( ') S^ispends provision rei;^nrdin;: e::ces-
sive co^Toensation to er^tecutiveo
-oendi:\- "^urther investi-^r.tion

(3) "./ritersi authors ;jid drrjir-tists
exerroted fron certain code "provi-
sions, oein.-\- .considered in "crea-
tiA-e ^-orh"

(1) C-r nts e::e- ration fron this Code

to : ;r^iuf r.cturer ■^;ho has "been 0"iera—
tin;' "-aider another code if he so
elects -nd files intention

(3) Provision that loo:i na"/ not o-ierate
t^ro 40 hour shifts "oer '-ee:: stayed
for 1-3 da-'"s.

1<:7 3einfurcin./3 materials
Pabricctin;-; Industrj""
(a-yp roved ll/'^7/33 'b:'
the President)

130 Precious Jevelr" Proluc-
i::;;: Industr:'"
( .a-y-iroved 11/27/33 hy
the President)

One coj-Ldition. Sane t"~pe as Code "o,
103 -hove.

0;ic condition, Sp/ne t;~oe as Code
Go aoove.

9844

-106-

APF".0\'2'D CODS

II 0. Industry

151 :;illiner;- Indutitr^'

(rrroroved l,?/l&/3o "b;
the President)

152 Crii r.arrj-facturers Iiid,
(a-D-o roved 12/l5/'uZ "j'f
tlie President)

153 7?.lve rnd rittinr;s iifg.
Irdustr;;'

(c-rroroved 12/15/33 "b:/
the President)

153 0::""-Acet"-lene Iiid.

(r;o"oroved 12/15/55 ^oy
the President)

164 "nit ted Ou-ter'.'ear Ind,
(a;ip roved l2/in/33 'b-'-
the President) .

174 "iihher Tire l^c I'id.
(a'T-!roved 12/21/33 hy

the President)

175 ileditui and Lo': Priced
JeTelr;- I'.fg. Industry'-
(a.pp roved 12/23/33 uy

the President)

179 i;iectrot:,'^oin{; ?iid Ster-
eot3'-oinr; Industry
(avvoroved 12/25/33. h"/
the President)

:o:D':::io::s i:: orTiir. or .-iPpr.ovAL

(l) Code stayed arter Jiay" 15, 1C34
until favorable re-oort of Code
Authority Tor continu?-nce
(3) SF-ne t;;'-oe as Code I'o. 64 (l) apove
(3) Persons suf-'erin/^; tmdue hardshros
i;;r?ated o 5":ortiu^it7" for relief,

(1) All other territories .-md possess-
ions of U» S. shall ho suoject to
Hawaiian '.'a'je District herein.

(2) Srne t^^^^^e as Code ilo, 14 ahove

One co:idition. Price lists filed shall
he availaole for ins;:>ection of nil the
trade -or.rties concerned.

Ond condition,
34 (4) aoove.

S~'-ie t'jve as Code

One condition. Sane t:~oe as Code h'o,
23 aoove

One condition, p.eservation to :iodify
code provisions after investigation h;
Adjni-iistrrtor. and Zr,T,C. r.dthin 90 da^

One condition. Sa::ie t^Tie as Code :"o,
06 ahovc.

(1) EiTOloyees m.y sha.re vorlz ^.-ith local
nechanics in their trrde ^:''iie:i su-ch
hours adjusted hy mutual a,'';rec;-jent
uith their enploj-ers, and such ye-
ouest riin;^'' he aio^oealed to local
lahor hoards

(2) Adiii-iistrator nay v/ithin 3 months,
reouire this industry to hecone
■o'-rt of C-ra.phic Arts Industries
after hearing; and trithoiit chnaa^;®
of definitions or adi.iinistrative
■provisions.

9844

-197-

\'o, Inc'ustr:/

130 pilot o-Ir.iiir.'^.vinr: Ind,
(c-.-T^rovec. lI'/'o/C'L 07

103 '.ctr.il "000. ,0116. CTOcei
'"•rrde

( r.-o; 3 rovod IZl'^Ofo'^ &:'
the presic^ent)

iJ'l: jlo-.-:e rnd S^iirt V.i
Indies tries
(r-oprovod 12/''0/L~o
the President)

196 '"liolescle I'ood and
C-rocer:" Trr.de
(r.-o:?roved l/-l/o-l d;
the Preside.it)

202 Crroet r.nd T;ii£; Iir,nu-
f r c tiir i n^' I ndus t vj
(a-roroved l/lr/o4 hy
the P-eoident)

204 Pl-u.-ihiiij;:- rixtiires I-.-.d,
(r.-Toroved 1/13/54 07
the Acx:inisti-:-.,tor).

217 Dental LalDorr.tor^ T/ad,
(a-Toroved l/.?2/c;4 jy
th.e Adaini G tr p.tor)

co: "iiTioi's ::" o~j)ii:i c:'' .•jpp".ov:.l

(1) 3rne t---.3 rs Cole ■.'c, 170 r.oovo (l)
00 Sf:.:o t-^rpe r.s Code '.■^0, 179 -oove {■)

(1) Provision -purport int.- to set ni:ii;.Tu;'i
trpjas--Tort.:',tion charf-cs to n^rc'-icj.at
stn:-ed ZO dT's -jendintj he-ri-r^-

(; )" Irovisicn --revioiisl;' covered 07.
7eder.~l statute eliiiinr.ted

([■) Sr;:ie t7oo c.s Code "0. lOo roove.

One condition. I^n-.ifacture -■xio. ^.r-.le of
r,-,.ecific p.rticles sta^i-ed as conin:; "Ojider
codo until hefirinc to det'-jrrnine '-.-hether
or not snch nrooerl"' cones under the code.

(]) St"/7 of 50 dr.7s on setting up

clar.sificr.tion of custoners
{7:) Srr.e t^oe as Code 102 (l) aoove
(l-) ri-;ht of 17, S. '/holesale Grocer's

As:j'n to reorescntrtion on code

ruthorit:^ to he considered
(4) S-ne t7oe as Code 132 (2) ahovo
(r) S'-ne t:pe as Code 103 ahove

Or.a co:idition. Volune discount -:ro-
vision str.--Gd, (Art. VII, Sec, 10 (a)

One co'ndition. Sr:ie t"oe as Code 7o.
105 (1) ahov3

One condition. Li:iit^,tion of hours
r.hall he 40 erxe-ot r.-hore th-ire is onl]
one erT:do7ee in the lahor'-tor7 "hen
it shall he 44

231 Si.\rirhcal Tressing Ind,
(arrro^-ed 1/27/34 hj
the Acjii'-istrator)

One co/.dition. Snae t7oe as Code 70i
13 aoove.

XL'TT.O^rET) CODE

lio. Indtistry

232 iierchcindise 'J-rehowsin.'^
Trr.de

(r;.rirovGd 1/27/54 "b"
the Ad:.ii ni ? trr t o r)

235 ?.ailnr7 Zrass Car p.nd.
Loconotive Jo^.rrLal ?>ep.r-
ir.£;s .'^;i':' Cr.stingG Ilfg.
Industry

(ci;o-nroved 1/29 /S4 d;-'
the Adin.inistrrtor)

234 '..iacr.roni Indur.tr7

(r-pprovcd 1/20/34 "b/
the Adiainistrr.tor)

236 Coohin;; and Heatintj kp-
■jliance lifg. Indtistry
(rrproved 1/30/34 by

the Acljiinistrator)

237 Allej^ Castinj Indiistrj
(a.-op roved 1/30/34 oy

the Adninistrator)

239 Porcelain Breakfast ;?iu--
r.ib.ire Assenljiinf^ Ind,
(a-.TOx'oved 1/50/34 oy

the Adninistrator)

240 Advertising Dis-ola:' In-
stallation Trade
(a;oproved 1/30/34 ''oy

the Ac'iiinistr-'tor)

241 Chev/ing O-ura Ilfg. Ind.
(a-Toroved l/o0/34 03'-

the Ac'-^inistrator)

243 Slide Tastener Ind,
(approved 1/31/54 "by
the Ac'j.vinistrator)

CO- T^i i'io::s i" or.'Di]ri or afp'.icmal

One cc:".".-' tion. S-'.ne t-'-e as Godo ITo.
13 ahovn.

One con'..ition. S^ne t''""ie as Code "o.
13 above.

(1) Sr:.ie t:-o2 as Code ITo. 151 ( 0)
atove

(2) O'len orice filing stayed for 50
dr-ys.

Ona conoition. Stay of v;aiting "oeriod
het'./een filin;- of prices and effective
date of revised orice list for SO days

(1) Sp:ig t;Tpo as Code I'o, 13 ahove

(2) Sane tyoe as Code IIo. 236 a.hove

One co-.'icition. Sane t^-^e as Code lio.
235 aDove,

One co'idition. Sane t^-oe ns Code I'o.
236 ^.'bove,

One cor.dition. Sane t':~oe as Code iTo.
236 abov:i.

(1) Sane tyje as Code Lo, 13 aaovo.

(2) Sraie tj'pe as Code llo, 236 above.

9844

-133-

API' ROVED OODE

C'JMDITI.KS ir CrDE-. OF APPROVAL

No.

Industry

245 Corrugated and Solid
Fibre Shiprjing Con"-
tainer Industry
(a-Dproved S/l/S-i by
the .Administrator)

One condition. Samo type as Code I'o.
2?6 above.

2-^6 Paper Disc I. ill: I'ottle
Cap Industry
(approved 2/l/3^ .by
the Adr^inistrr^tor)

One co.ndition. Same t.^rpe as Code No.
2?6 fibove , couTjled "'ith provision for
hearing i»'ithin 90 d^ys if so der-ired
by the .Acnlnistrator.

2^7 Food -^ish and Pulp and
Paper PL.te Industry
(approved 2/l/34 by
the Administrator)

One condition. Same type ■ s Code No,
2-^6 a.bove.

2'±8 Glazed and Fancy Paper
Industry

(approved. 2/l/3-i by
the Administrator)

One condition. Same type as Code ''O.
2t.-6 above.

2'±9 Tag Industry

(approved 2/l/o'i b;;
the -iidministra.tor)

One condition. Same t-qrie as Code To.
2-^6 above.

250 ""ire, Rod, and Tube Die
I idustry

(approvea 2/1/04. by
tne Administrator)

One'condit ion. Same t^Ape ? s Code No.
2Se above.

252 Cylindrical Liquid

Xight- Paper Container

Industry

(approved 2/l/2^ by

the Administrator")

One co.idition. Sajne tjnae ap Code No,
2''.ce above.

25-± Athletic Goods hfi^. Ind.
(approved 2/2/31 by
the Administrator)

One condition., Same type as Code ^'0.
13 above, coupled '"ith provision for
hea.'in< '"ithin 90 days if so desired
by the Administr' tor.

257 Printing Equipment In-
dustry and Trado
(approved 2/2/34 by
the Administrator)

'"'ne condition. Same type rs Code No,
236 above.

98-^^

-20C~

APPROVED CODE

coraiTi Fs ir opj)Er( of approval

No.

Industry

258 Cast-iron Boiler and Cast-
iron Eadiator Industry
(approved 2/3/34 by
the Administrator)

One condition. Provision '"estricting
sale to '--holesaier "'ho sells to dealer
at prices belov listed urice of such
member stricken out.

259 Hat Mfg. Industry
(approved 2/5/3^ by
the Administrator)

260 Ornamental loiding,
Carving and Turning Ind.
(approved 2/5/34 by

the Administrator)

One condition. Same tyve as Code No.
236 above.

One condition. Same type as Code i^o.
236 above.

261 Foundry Supply Industry
(approved 2/5/34 by
the Administrator)

One condition. Same type as Code No.
236 above.

263 Machine Knife and Al-
lied Steel Products
kfg. Industry
(approved 2/6/34 by
the Administr- tor)

264 Foundry Equipment Ind.
(approved 2/6/3-i by
the Administrator)

265 Coffee Industry
(pTDp roved 2/6/34 by
the Administrator)

267 Used Textile Sag Ind.
(approved 2/8/34 by
the Administrator)

One condition. Same type as Code No,
236 above.

(l) Limiting exemntion from hour pro-
visions.
(2/ Relative to Administration Members

(1) Same type as Code No. 151 (3) above

(2) Seme type as Code No. 264 (l) above

One condition. Same tyne as Code No.
119 above.

268 Secondary Aluminum Ind.
(approved 2/8/34 by
the Administrator)

One condition. Same type as Code Np.
236 above.

269 Carbon iilack Mfg. Ind.
(approved 2/8/34 by'
the Administrator)

One condition. Same type as Code No.
236.

9844

APPROVED COrE

C01:LITI0;S IN OulEU OF APPROV.sjj

iii?j_ Indu stry

2V0 "ood Heel Industry
(a^proTed 2/9/54 liy
the Adriinistr- tor)

272 Unit Heater and/-or Unit
Ventilator i-ifg. ind,
(approved 2/l0/34 by
the Administrator)

One ccnrlition. Same tyije as Code To,
2oG f.bove.

One condition. Same type as Code I'^o,
236 atove.

274t Sa-^ and Steel Products
[fs;. Industry
(apr)roved 2/lO/o4 ty
the Administrator)

One condition. Stays filing; of lorices
for period of 60 days or until s com-
pletion of a study of open price asso-
ciations "by NPA.

276 Pleating, Stitching and
Bonnaz and Hond. Embroid-
ery Industry
(approved 2/lO/o^x by
the President)

One condition. Same as Code To,
119 above.

Trucking Industry
(approved 2/10/3^= by
the President)

280 Retail Solid luel Ind,
(approved 2/l-±/'o-± by
the President)

281 Laundry Trnde
(approved 2/16/3^: by

• the President)

One condition. Vehicles engaged in
"■ rehousing of furniture shall register
'^'ith Code Committee of proposed Code
for Household Goods Storage and l>:oving
Trade and if, sporoved, thereafter ^ith
the Code uthority.

One condition. Same type as Code To.
174 above.

(l) 5 conditions setting uo trr.de

areas and control boards therefor.

182 Restaurant Industry
■(approved 2/16/3-^ by
the President)

(1) Provisions regarding spread of
vTorking hours and number of shifts
per day stayed.

(2) V/ork '-'oek shall not be increased
. prior to dote of order.

(Z) Further investig' t i ^n of stop loss

nrovision ordered.
i^i) Same type as Code No. 119 above.

98'±4

IC2-

Ko.

approv?:d gcde

Industry

285 Railway C^r juilding' Ind.
(approved S/ie/S-i Isy
the Administrator)

286 Beauty and Earber Shop
iviechanical Equipment
Mfg. Industry
(approved 2/16/34 by
the Administrator)

287 Graphic Arts Industries
(approved 2/17/ 3'i by
the President)

288 Daily J^Ievspaper Publish-
ing Business
(approved 2/17/3^^: by
the President)

289 Cloth i-eel Industry
(approved 2/17/34 "oy
the Administrrtor)

290 Photographic Lount Ind.
(approved 2/17/3"* by
the Administrator)

CONDITIONS ir ORDIR OF APPROVAL

(1) Definitions of Industry and of
members of the Industry varied.

(2) I:aximuTi hours of po^er plant em-
ployees decreased..

(3) Same type as Code No. 13 above*

One condition. Same as type in Code
No. 236 above.

(1) Power given to Labor Boa.rd in Sec,
2'i, pj^rt I given to code authority
and compliance boards, and Section
setting up board deleted. Labor
Board set up by Administrator with
powers and duties.

(2) Maximum hours set up not to be con-
strued as minimum.

(3) Provision for hearing on definitions
and other provisions in code,

(4) Provisions for posting code pro-
visions as .to hours, wages and em-
ployment a,s well as the Order.

(0) Same type as Code No. 13 above.
(6) Same type as Code No. 113 (l)

(1) Determination of hours and wages
for news department workers shall
be made not later than 60 days
hence.

(2) Administration members shall give
particular attention to minors de-
livering and selling newspapers.

(3) This was inserted to give notice
that regardless of the hedge against
modifications under Sec. 10 (b), the
President could utilize the pro-
visions of Sec, 3 (d) of the Act.

One condition,
above.

One condition.
2 t£ above.

Sane type as Code 236

Same tyoe as Code No,

9844

-2C3-

APPSOVID CODE

L"o. In dus tty/

291 '.'ood Cased Lead Pencil
l.tg. Industry
(au|iroved 2/l7/S% by
the Adrainistrator)

COrDITIONS Ii' ORDER OF A" P' OVAL

One condition. Same type a.s Code No.

13 above.

Price structure st-yed -oendin^ further

investitration.

292 Chillea Gar 'heel Ind*
(ao roved 2/17/ 3-± by
the Administrator)

293 Crumm.in^' Industry
(aioproved 2J17Jo-x by
tne ^cminist rater)

One condition. Sfune type rs Code No.
13 above.

One condition. Same tyne ss Code IJo.
2-i6 above.

294 Guinned Label and Embossed
Seal Industry
(apnroved 2/l7/3'i by

'the Administrator)

295 ^.aterp^oof Paioer Industry
(approved 2/l7/3-i by

■ the Administrator)

296 I luted Cup, Pan Liner

' nd Lnce Paper Industry
(ap-nroved 2/17/3-^ by
the Administrator)

297 Advertising Distributing
■ Trade

(aptiroved 2/17/3^ by
the Presiaent)

One condition. Same type as Code No.
2--6 above .

One condition. Same t;'7-r)e as Code V.o,
24e abo ve .

One condition. Same type as Code Fo.
2'i6 above.

(1) Eoys l*x and 15 may be eraDloyed
not to exceed 3 hrs per day be-
t'^een 7 a.m. and 7 p.m.

(2) Same t^/pe as Code ITo. 287 (3) above

(3) Effects of hours and r-^tes of pay
01 office i"orkers to be reported
in 90 days.

298 Wipin ; Cloth Industry
(approved 2/17/3^ by
the Administrator)

300 Lye Industry
(approved 2/19/3t: by
the Administrator)

301 Sample Card Industry

One condition. Same ty^;e as Code No.
119 above.

One condition. Same tyi.ie as Code No,
2-3:6 above.

One condition. Same tyoe as Code No.
2-- 6 above.

QB'i'A

ilo

APF'^.O^rEB CODE
Induntry

304 Outdoor Advertisiiv; Trade
(approved' 3/24/34 "by

the Aojiinistrr-tor)

305 Fibre Cr.n and TulDe Ind.
(approved 2/24/34 ty
the Aoiiinistrn^tor)

306 i:ica Industry
(approved 2/24/34 hy
the Administrator)

307 Stay Ilfg. Industry
(approved 2/25/34 "by
the Administrator)

308 Fishery Industry
(approved 2/26/34 hy
the President)

311 Ready Kixed Concrete Ind.
(approved 2/27/34 hy

the Ac!jiiinistrator)

312 Narrow Fahrics Ind.
(approved 2/27/34 hy
the Administrator)

313 Steel ¥ool Indxistry
(approved 2/28/34 "hv ■
the A&viinistrator)

315 Industrial Safety Equip-
ment IndvLstry and In-
dustrial S8.fet2'- Equipment
Trade

(approved "by the Aclninis-
trator 3/l/34)

318 lleFsppper printing press
Industry

(approved 3/5/34 hy
the Administrator)

323 Die Casting i;ff^. Industry
(approved 3/s/34 hy
the Administrator)

-r;04-

COIDTTIOIIS III OHDE?. CP AF'priOVAL

One condition. Snj'.e type as Code ITo
236 ahove.

One condition. Same t^Toe as Code Vo .
245 aljove .

(1) Importer? must he shorrn to he a
representative gro-ap hefore in-
clusion.

(2) Snme type as Cod.3 x!o .246 ahove.

(1) Some tj-pe as Code ITo .287 (3) ahove

(2) Same type as Code ITo .24 (5) ahove

8ne condition. Sai'ie tjT:e as Code l!o.
151 (3) ahove.

One condition. Sane type as Code Vo
236 ahove .

One condition. Stay of homework in
the Indiistry and provision for a
study of situa.tions relative thereto,

One condition. Sane type as Code llo
235 aoove .

One condition, Ssxie type as Code Vo
235 aoove .

One condition. Firemen limited to 45
hours rather than 48 ner 'jeek.

One condition. Ssxie tj^pe as Code ITo
13 ahove.

9844

afp:"-OVi:d codt:

-205-

I'o.

Infustr;/

Z25 'Iiorseshoe cjicl Allied
Products ::fA-. lid.
(approved 3/3/34 'b-j
the Adiinistrrtor)

327 i;acuin.e Applied Staple

and Stapling ilachine Ind.
(ap;")roved z/io/o'h "by
the Ai lini s trator )

329 Upholstery S'jrinf and Ac-
cessories Vfs. Ind.
(approved 3/l0/34 'oy

the Ad .i:iist:'ator)

330 Scro.p Iron, llonferros
Scrap l.'etals rnd 7r,ste
i-aterials Trpde .
(aporoved 3/12/34 'ay
the President)

331 Lulh Drinlzin^ Strav.',
trapped Drinhinfj Straw,
^ijrapped Toothpick and
Wrapped Vanicure Stic^c
(approved 5/l4/"4 "by
the Acjiinistrritor)

332 Ladies' ^'and'oag Ind.
(approved 3/14/34 o^'"
the Ad-iinis t i ator)

333 C^-nvas Goods Ind.
(approved 3/16/34 "by
the Administrator)

334 3ever;i^e Dispensing- Soui^j
.nent Industry

(approved 3/16/34 Iv
the Awiinistrator)

341 Pihre and I'etal '.lork

Clothing Button iXfr.Ind
(approved 3/17/34 hy
the Ac'j-iinistrator)

345 Collapsihle Tube Ind.
(ap-oroved 3/17/34 hy
the Ai'ninistrator)

(1) Snj.ie type as Code ■'0.233 aoove

(2) S.3J-1C tj'pe as Code ITo . 96 above

(1) Saie t-^po as Code yo . 236 aliove
(3) Srxie t;~oe as Coce I^o . 13 ahove

(1) Spire tj'ne rs Code 'Jo. 235 alDOve

One condition. Code Authorit3- and/or
Administration '.Inrj'ber shall report
whether sur)"''leraental code necessary
or desirphle .

- (1

ScJiC- t/npe as Code ITo. 236 ahove
hininiin pnd raaicirauia hours via.de
to ^J^;lly to veah periods only not
exceeding 12 weeks per year
Savie t^^e as Code yo . 96 ahove
S^'.;ie t"^e as Code -llo . 153 a-hove .

Definition of "scni-s'tilled" en-
plo",''ee stayed ijntil suitr.bl.e one
presented -to Auninistrator .
Soiie t'"oe as Coc'e Fo . 3 c'bove.

Sa -e tyoe as Code yo . 243 above
provision for a j^reneral lahor
s tudy .

S'Tie tj^oe as Code jo . 33c ahove
Srv-ie t^'-^e as Code "do. 96 aoove

One condition. SaJ.ie t^npe as Code llo.
245 ahove .

One conditio!. Sane tirpe as Code I"o .
312 ahove.

One condition. S?;ie t:^e s.s Code I^o .
15 ahove .

9844

■-no6-

347

349

APPROVED CODE

Industr;\

llacliinery and AllioA
Products Industr;.'
(rjpproved "by 3/17/34
the President) \

Mayonnaise Iic-astry
(approved 3/21/34 "by
the Ad].!inistrator)

co:t):tio:-s t: c^de:. of af?-:OVal

(1) Sar.e t'-pe as Code "Jo. 13 ahove

(2) Same t;npe as Code "To . 287 (3) atove

(1) Sa.ne t-^pe as Code "Jo. 151 (3) alDOve

(2) Sa;ie t:--e as Code '-o . 245 ahove

(3) Ho-urs of ■.Tatcliinen limited to 56
rather than 53

352 Flag i'fg. Industry One condition,
(approved 3/21/34 ty ahove .

the Adj'iiinistrator)

353 Insulation Board Indus tr^r
(approved 3/32/34 hy
the Aduinistrator)

354 Snail Arms and A"-'.iiunition
lifg. Indus tr-!-
(approved S/22/34 hy
the Administrator)

355 Fuller's Earth Producing
and I'arlcetinr; Industry
(approved "/23/34 hy
the Adxi in i s t rat or )

359 Preformed Plastic Fro-
due t s I ndus t r ;;'■
(approved 3/23/34 hy
the Administrator)

350 Brush hfg. Industry'
(approved 3/25/34 hy
the Administrator)

352 Photographic s,nd Photo
Finishing Industry
(approved 3/23/54 "by
the President)

363 .Ken's Hecla-'ear Industr;''

(ap:oroved 3/24/34 "by
the President)

364 Clay Drpln Tile Hfg.
• Indtistry

(approved 3/24/34 "by
the Administrator)

Snme t3nDe as Code 312

One condition. Hours and wa^es to
Hawaii shall "be stayed pending fur-
ther order.

(1) General amendment to the hour
provisions

(2) r.elative to resale prices

(3) Same tj'pe as Code j'o .288 (3) ahove

One condition. Sfjae t-foe as Code Vo .
246 ahove .

One condition. Same t^.noe as Code ITo .
245 ahove

One condition. Ssxie t;rpe as Code No
2G8 (3) ahove .

One condition. Saiie type as Code ".To
235 a'bove .

One condition. Provision made for
study and report on the schedule
of r.iinimum piece rate wares.

One condition. SaiaG ty:oe as Code ITo
245 a'bove .

9844

ITo.

app::OVZp code

InuiAstry

cOxiTiTioiis ir opde;:. of ap?:"iovil

365 Srvicl-Linie Iricl;: Ind.
(approved 3/36/34 "by
the Ac^ministrator)

365 1-ietail i 'ontunent Indf^tr.
(ap-oroved 3/26/3'! "by
the Adninistrator)

357 r.etcJ Tract in,-- Indus try
(s;oproved 3/26/34 by
. the Adiiiinistrator)

359 Exofinding and S;oecip,lty
Ps,per Products Industry/
(approved 5/26/34 "oy
the Acuiinistrrtor)

370 Open Pnper I)rin]:in;- Cup
and iLO-ijuid iTesti-i^; Fap3r
Food Conteaner Industry
(approved 3/2 6/ 34 'oy
the A'Ministrator)

371 S2j.iitary I'.il]: Bottle
CloEurG Industry
(approved 3/26/34 hy
the Aclj-iinistrator)

372 Shoe Tlehuilding Trade
(approved 3/27/34 hy
the President)

373 Infants' and Children's
Wear Industry
(approved 3/27/34 "by.
the President)

374 Tannin^;'- Extract Industry
(ariproved 3/29/34 0^

the A'"^i!iinistrator)

377 Reclained Euhher I'fy.Ind.
(approved 4/2/34 "by

the AAruinistrator)

378 Peanut Butter Industry
(approved 4/4/34 "by
the Adninistrator)

One conc/ition. Sriie type
245 rhove

Code To

One co^idition. Saine type as Code ;'o
246 ahove

0n3 condition,
245 ahove

Srxie tjn.-)e as Code yo

(1) Sane type as Code ITo .246 ahove

(2) Herring nay "be had at o;otion of
Adriinistrator on any provision,
and subsequent orders have the
effect of conditions in approving
the code.

(i) 'Saiae ty;oe as Code ITo . 245 a'bove

(2) Spn3 tiroe as Code ITo . 359 (2) a'bove

(1) Sojne tj'pe as Code ITo . 245 ahove

(2) Saae type as Code Ho . 359 (2) a'bove

One condition. Saie type as Code ]'o
93 Eibove

Three con: itions prescribed to avoid
overls^ppins' def initio-.is ^^'ith other
codes.

One condition. Sane tj'pe as Code T.o .
359 (2) above

One condition. S.ame t^'-pe as Code ITo .
245 above .

(1) Sr-.ie type as Code 1^0.151 (3) above

(2) Sc-,;ae t-ype as Code.Uo. 246 above

9844

-2-C8-

APFI.OVED CODE

COITDITIOIIS I.I C-iDIll OF iiPPLOVAL

¥.0.

InoAistry

382 Transparent Uaterials
Converters Industry
(e^p proved 4/4/34 "by
the Ac^'oninistrator)

384 7i.-mero.l Service Indiistr:;'-
(approved 4/4/34 Toy

the Adninistrator)

385 llailroad Special Track
E qiiipment I If f^ . Indus try
(approved 4/5/34 ty
the Adninistrator)

386 UmlDrella Fr?iie and Un-
Tsrella Hardvrare llfg. Ind
(approved 4/6/34 by

the Administrator)

388 S ands t o ne I ndus t r j^-
(approved 4/6/34 hy
the Adininistrator)

(l) Sa.ie t --po as Code Ho. 246 above
(:3) Saie t-pe as Code iTo . 369 (2) above

One condition. Provides that a certain
trado practice shall not supersede any
Stpta Lan.

One; condition. Sane type as Code ITo .
24G above

(1)
(2)
(3)

(4)

(5)

(1)
(2)

(3)

Sa^.ie t'HTie as Code 'Jo .
Sane t^^oe as Code iTo .
Insi~nia provisions s
fiirther stitdy be made
Code Authority reorge
nore representative.
Same type as Code No •

Sajne t?'"pe as Code IIo .
"Jot a true condition
isation containing a
precedent by JTRA for
In event of revision
visions of Limestone
Industry shall submit
visions .

246 above

312 above
tayed until

by ITEA.
nized to be

13 above.

245 above
biit a rational-
disclaimer of
other codes,
of labor pro-
Code, Sandstone

like re-

390 Steel Plate Fabricating
Industry

(approved 4/6/34 by
the Administrator)

391 Insecticido and Dis-
infectant ilfg. Industry,
(approved 4/6/34 by

the Ac'jninistrator)

393 Soft Fibre Ih^-'j. Industry
(approved 4/9/34 by

the Aoministrator)

394 Li.~htnin- Rod Ilfg. Ind.
(Approved 4/19/34 by
the A^'jninis Lrator)

One condition.
369 (2) above

One condition.
236 above .

Snme type ^s Code ITo.

Srme t;T)e as Code ilo

One condition. Certain provisions
regardiiig price filing stricken out,

(1) Sa.me type as Code ITo. 245 above

(2) S?j.ie type as Code iJo . 13 above

397 Spray Painting and Finish- (l) Sane tj'pe as Code :To . 235 above

ing Equipment Ilfg. Ind.

(approved 4/13/34 by the

Adi^inistrator)
9844

-209-

APPP-OVED COZE

COIDI'^IOIIS Ii: aiQzZ: OF APPROVAL

llo. Industry

398 Barter Shop Trade

(a;pproved 4/l9/ v'l- "by
the President)

(l) 5 conditions rs to d.esignating

trade areas, locel adrninintrr.tive
Boards rnd assents fron represen-
tative Trade nemters before code
effective .

401 Copper Industry

(approved 4/21/34 by
the Administrator)

(l) Subctitutos an entire ne-./ Article
VII on liarhetin^r iDroviaions.

402 Se-'.Tin,- Machine Industry
(approved 4/21/34 by
the Administrator)

One condition.
13 above .

S?j.ie t^Tje as Code ITo .

403 Bleached Shellac i.'fg.Ind. One condition,
(approved 4/2l/o4 by 236 above,
the Adjiinistrr.tor)

Same type as Code ITo

)5 Boatbuilding and Boat-
repairin- Industry
(approved 4/24/34 by
the Administrator)

One condition. Same t^npe as Code ITo ,
23G above .

407 Dr- Color Indn.stry
(approved 4/25/3^:- by
the Auninistrator)

408 Undergarnent end ITcgligec
Industry

(approved 4/27/34 "oir
the Administrator)

One condition,
280 (3) above .

Srjiie t'n:)e as Code No

(1) Study cjid heariiig prescribed to
determine whethei: code' authority

is representative.

(2) Same t^'pe as Code ITo. 333 above

(3) No reduction of wages to be made
pending above study.

(4) Sets up Industrial Relations Board
(o) tJatcliiien and non-mpjiuf acturing em-
ployees TDrescribed a maximu-i hour
rate .

409 Flexible Insulation Ind.
(aTjprove'd 4/30/34 by
the Aclministrator)

410 P.etail Rubber Tire and
Batterj' Trade
(approved 5"/l/34 by
the President)

One condition. Same type as Code !To ,
236 above .

(1)

(2)
(3)

If Ad linistrator determines that an
eraergenc:^ exists, he may determine
a lowest reasonable cost.
Same t^rpe as Code No . 236 above .
Code Authority to subinit recom-
mendations to render hour and wage
provisions similar to other codes.

9844

~21C-

APPltOVED CODE
No. Industry

412 Loose Leaf and Blanlc
Book Indus tr7/
(approved 5/l/34 "by
the Adninistrator)

413 Pasted Shoe Stock Ind.
(approved 5/3/34 hy
the Acl-rninistrator)

414 BoVoin and Spool Ind.
(approved 5/3/34- hy
the Administra,tor)

415 Commercial Fixtures Ind.
(approved 5/3/34 hy

the Ac-rainistrator)

416 Leather Cloth and Lac-
quered Fahrics, ¥indo¥7
Shade Cloth and Roller
and Book Cloth and Im-
pregnated Fahrics Ind.
(approved 5/3/34 hy
the Afj-ininistrator)

419 Soft Lime Rock Ind.
(approved 5/7/34 hy
the Admini s tr.ator )

COIIDITIOITS I-^ 0:iDE?. OF APF?-OVAL

(1) Srne type as Code iTo . 235 ahove

(2) Sai.ie type as Code No. 359 (2) above

(1) Scne tj.'pe r.s Code "Jo. 369 (2) ahove

(1) Hours cut from 48 to 45 as maxirauia
for maintenance crews, ens-ineers,
firemen, etc,

(2) Seme trpe as Code 'iTo. 236 ahove .

One condition. S:une tjrpe as Code To.
13 above .

(1) Scjne tjnpe as Code Ho. 236 above

(2) Sajne t-'pe as Code Ho. 96

(3) Same t:'pe as Code ITo. 28S (3) above

(1) So.ne tjrpe as Code Mo. 236 above

(2) Code Authority to submit evidence
that averaging hotirs is necessary
in the Industry'-

420 Gypsum IndListry
(approved 5/7/34 by
the Administrator)

421 Marble Q;ua,rrying and
Finishing Industry
(approved 5/9/34 by
the Administrator)

423 Drop Forgine- Ind.

(approved 5/10/34 by
the Ar'jninistrator)

(1) St'jne t^'pe as Code Ho. 235 above
•(2) Sejne t-'pe as Code Ho. 419 (2) above

(1) Ssj.ie type as Code Ho. 236 above

(2) Same type as Code No. 410 (3) above

(3) Sam.e type a3 Code No. 419 (2) above

(1)

(2)
(?)
(4)

Ha::imum ho\n-s lo'.7ered for peaJc
periods, seasonal demands, con-
tinuous processes, etc.
Sa.ie t-'/pe as Code ITo. 288 (3) above
Sp:;ie t-pe as Code No. 235 above
Sr^xie t/.Tie as Code No . 13 above .

424 Spice Grinding Industry
(approved 5/ll/34 by
the Ac'jninistrator)

One condition. S.rj.ie tyoe as Code Ho.
151 (3) above.

9844

-:ai-

APPROVED CODE
Industry

426 Paper Haulers' Felt Ind.
(arp'oroved 5/ll/54 oy
the Ain i ni s t rat or )

430 Pa.cl'atsG uedicine Ind.
(approved 5 /lb/ ''A "oy
the Acbliinistrator)

4"! Toll 3rid^':e Industry

(o.pTsroved s/iv/s-l- "by .
the Aoj'.inistrator)

432 Specialty Acco-onting Sup-
ply Ilfg. I'xltistry
(approved 5/17/34 'oy
the AcLniiiistrator)

435 Cotton Pickery Indtiatry
(approved 5/17/34 T;y,
the Airiinisti-ator)

436 Yar Llfg. Industry
(approved 5/15/34 hy
the AjJninistra,tor)

437 Bicycle V^fg. Industry
(aoproved 5/21/34 hy
the A'ninistra-tor)

444 Shoe Pattern Mf-:;^. Ind.
(approved 5/26/34 hy
the Adr::inlstrator)

445 Bahin; Industry
(approved 5/2S/34 hy
the President)

4-16 Cannin,-: Industry;

(approved 5/2S/34 h;,
the president)

COiyDITIGlIS III OliDER OF APPROVAL

One condition. Sriie type as Code llo .
236 rhove.

One condition. Sfie tYP® as Code /^o .
573 ahove .

(l) Sa;ie tyoo as Code Ho. 373 ahove
(r,) S". .e ti^e as Code To. 13 a'oove
(3) Provision Tiade for puhlicly o'jned

toll oridres to hecorae nernhers

of the industry.

One condition. Saao type as Code IIo .
235 ahove .

(1) Provision thp.t nothing in the
Code shall ra-oly to ejqport trade
stayed pcnd.inj; filinr; of ohjections
for 10 days.

(2) Same t^'pe as Code llo. 410 (3)
ahove ,

(1) .Sruie type as Code Ho. 151 (3)
' ' ahove

(2) Sane t^-pe as Code Ho. 274 ahove .

(1) S-Jas t^roe as Code Ho. 14 ahove

(1) Gaiae tj-pe as Code Ho. 236 ahove

(1) Spme type as Code Ho. 256 ahove

(2) Stay of provision prohibiting
,' the givinf; of preniuias a,nd

coupons

(3) S'vie type as Code Ho. 14 ahove.

(?.) Co:i:Tittee ap:oointed for standards
of Quality c-^iid labelling re-
Quireiiients, to raa':e report in
90 days.

(2) Sane type as Code Ho. 14 ahove.

9344

—'-/IS*-

No.

APPHOVSD CODS
Industry

UUS Optical TJholesrJ-e Inclustr/
and Trade

Approved 'ol^S^-l'^'- ''^'J
the Adrninistrr.tor

i+50
U5I

U5g

Dog Food Industry
(approved ^j'^S^j'y^-r "oy
the Adrainistrctor

Candle\7ick 3edspraa.d Ind.
(approved 6/1/3'!- "b;'
the Adiiinistr.'.tor)

Metal Etching Industii^''
(approved 6/4/34 "by
the Adrninistrr.tor)

Ice Cream Cone Inc^ustry
(approved 6/U/3U oy
the Adrainistr.-tor)

TTholesale Con:?ecti oner's'

Industry

(n,]3proved 6/6/3'^ jy

Admi ni s t r a,t r)

U59 Bottled Soft DrinI: Ind.
(approved 6/7/3''" ^L'
the President)

U60 ■ Preserve, Ilr/r&.sohin.o

Cherry and Glr.ce Truit

Industry

(approved 6/0/3U ty

the Adininistrrtor)

U62 Wliolesale Totacco Trade
(approved b/S/3'-!- ''^'J 't-^e
Administrator)

coiiDiTiOiTs i:: orJDs::i or approval

(1) Ilnxii'TOii mu'^lj^jr of hours made ider>-
t i c al r c ;,-. r dl ess f p opul at i o n .

(2) Code Authority not given po'ier to
arbitr-.to Ir.oor disputes.

(3) Same type as Code ITo. I96 (1) above.

(4) Same t^n^e as Cof.e ITo. 35^ (2) above.

One condition. Sane type as Code No.
236 above.

(1) Minuraura prescribed for hone-jork
and a stuo^' and hearing provided
therefor.

One condition. Sane type as Code No.
236 above.

(1) Same type as Code No. 23U above

(2) Sarae tj'pe as Code No. !-^U5 (2) above

(1) Same t:r^e as Code No. 236 above

(2) Sane ty.e r.s Code No. U% (2) above

(3) Sane t:'pe as Code No. I5I (3) above
(U) Sanctions of ua^^jon jobbers as tO'

na::inui'A hours stryed.

One condition. Sane tj-pe as Code No.
lU above.

(1) Same type as Code No. 236 above

(2) Same tj'pe as CoCc No. 6>-L (l) above
(female rr-tes and audit aysbem); ,-

(1)

(2)
(3)
(4)

(5)

Merchandising pla-n stayed until
agreement reached ^ith Cigar ln~
dustiT and SetaJ.1 Tobacco Trade,
Same tj-^oe as Code No. 23S above.
Same t:'-pe as Code No, 27^ above.
Nei-r section substitu.ted for price
ctitting piif. declrXation of an
emergency.

Hour and wage provision not to
become effective for tv/o weeks.

9Sl|U

-313-

No.

APPROVED CODI
Indasti'S''

COITDIT'IOIIS

CLJHR 01- ..VPHIOVAL

Ub3 Candy Mfg. Inouctr:'
(approved 6/il/3^ ''oy
the President)

U6U Cocoa and ghocolate Ilfg.
Industry

(approved ,6/1^/3^'- "^'J
the Administrrtor)

U66 Retail Tobacco Trc.cle
(approved GjilS/j/h "by
the President)

U67 Cigar Ilfg. InduGtr;'
(approved 6/l3/3^v "b^^
the President)

U69 Sulphonated Oil i.Ifi".
Indu.stry

(approved 6/2b/3^l "ijy
the Administrator)

U70 Aluninuni Indiistr:/
(6/26/3U hy the_
Admini strator)

U7I Trailer Mfg. Indi\::tr3''
(approved 6/^6/3^ oy
the Admini strr.t or)

U72 TJarm Air Register Ind,
(approved 6/r^.o/3':- l>y
the Adr.iini strator)

hlh Needlevfork Industr- In
Puerto Rico
(approved S/P.C/jM "by
the President)

(1) Same tyoc r.s Code No. P.^G atove

(2) Same t:roe r.s Code No. U% (2) above

(3) Same type rs Code No. I51 (3) above

(U) Sa.Tie tjrje ; n Code Ho. II9 above.

One condition. Stne tj
hk[) (2) above.

-.'6 as Cade Ho.

(1) Same type a.s Code No. U62 (l) abo^e

(2) Same tjrpe a,s Code No. 235 above

(3) Same ty;oe as Code No. 27U above

(k) Some type as Code No. U62 (U) above

(5) Same type r.s Code No. U62 (5) above

(1) Same type a.s Code No. U62 (l) above

(2) Same type as Code Ho. 236 ^^^^^

(3) Same type r.s bode uo. 274 above

(U) Same type rs '^ode Ho. U62 (5) above

(1) Sane type as Code Ho 27^ above

(1) Code approved for trial period of
90 days'.

(2) Same type as Code No. 17^ above.

(1) Sane type r,c Code No. 236 above
Stay of provision saying members
shall not sell below their indi-
vidual cost until good cause to
the contrar" shovm,

(3) Sane -ty-ps as Code Ho. I3 above,

(1) Differential discount to large
purchasers deleted.

(2) Sajiie tj'pe as Code Ho. U7I (2) above.

(1) Menb'3rs given er.enption from cer-
tain en^jj^iercted rel.ated codes.

(2) Code Authority to siabmit plan to
• issue uniforn l.rbles rith U.S.

Industries.

(3) Homev;orkers to be paid defficiency
they 'Tould receive if v/orking at
the f.actor'' under the Code.

98^4

-214-

APPROV :D COD^
No . Industry .

474- (continued)

COITDITIOIJS I'N OltDZR OF APPROVAL

(4) CommisKion set up to maJce recom-
me-idations for posKible code
modifications.

(5; Study of waf;e scale and piece
work tesis •orescribed.

475 Yeast Industry
(a/proved 7/2/34 hy
the Administrator)

476 Hatters' Fur Cutting Ind.
(approved 7/3 /.'54 ty

the Administrator)

One condition. Iviinimum wage rate in-
creased from 40 to 45 cents laer hour.

One condition,
151 a"bove.

Same tvoe as Code llo,

477 Public Sea.tin;; Industry
CaioTDroved 7/10/34 by
the Administrator)

478 Secondary Steel Product;
Tferehousing Trade
(approved 7/10/34 by
the Administrator"^

479 Cold Storaf;e Door ilf^.
Industry

(approved 7/11/34 by
the Administrator)

480 Structural Sto?l snd Iron
i ■•ving Industry

(a, >d 7/11/34 by

the i aiistrator)

One condition. So.rae ty-oe as Code No.
236 above.

One condition--Code only a :)^roved for
90 da^rs.

'lours and wages stayed temporarily
imtJ.l cause shown why they sho^uld
not become effective.
Members to comply with provisions
■oending above stay.

Same ty^e as Code "Jo. 236 above.
Same tyioe as Code Ho. 13 above.

Brection work to be governed by'
Construction Industry.
■Jew wage rate substituted with ex-
ception as to hours for watclimen,
etc.

No employee to be dismissed for
reporting alleged violation.
Same type as Code 408 (l) above.
Kew "selling belo"' cost" provision
added.

Firm of public accoiuitants to make
within tvro months v report of
direct and indirect charges.
Sr-me tyoe as Code 28;:i (3' above.
', inimxim rates of pa""' set uio by
district i-..
(9) Nev; trade oractices ac'ded: purchas-
ing beloi-' advertised -orice; ship-
TDing in transit privilege to other
iDOints than specified in order.
('10) Sam:^ tvTDe ^s Code No, 369 (2) above.

9844

?15-

Ai'PHLVro ClDE

C01\IDITIGwS IN CHDE'R 07 AFPP.CVAL

Industry

482 Dental Goods and Fquipment (1) Samp tyve as Code 36S (?) above

Trnde

(a:ooroved 7/13/34 by

the Administrator)

(2)
(3)
(4)

(5)

(o)
(V)

Same t;,rpe as Code 480 (2) above
S?9me ty-pe ps Code 408 (4) above
kodel provision substituted ns
failure to o^y asscssmentt; under
bud ;^e t .

Compli^/'ce witn code nnd oaynent
of assessments to entitle member
to participate in selection of Code
Authority and enjoy benefits.
Prohibition of consip^nnent of
equipment exceot on contract ao-
proved by Code Authority.
Pa^TOent of rebates revised, b"'' lem
section.

483 Electric Hoist and '
rail f'fg. Industry
(aporoved' 7/13/34 b-,
tne Administrator)

One condition.
13 above.

Sa'~ic ty-oe as Code ''To.

484 VAiolpsale l.onumental
Marble Industry
(aporoved 7/14/34 by
the ■ Administrator)

(1) 'Jar^e rat>=s and overti^ie orovisions
aDjroved oendin^-^ 90 da?/ study

(2) Provision re method of pa^'nnent of
wqgps stayed until stay in P.etail
Trade Code bp determined.

485 Cotton O-innin - Kachlnery (1)

Mfg. Incustry (2)
(ap'oroved 7/16/34 by

tiie Administrator) (3)

Sane tyop as ^oce 236 above,
kaximam hours of heat firemen
stayed bO da?/s.

Southern ''VagF- rate to be recon-
sidered after oeak oeriod in
industry.

486 Comme-rcial Venicle Body
Industry

(approved 7/16/54 by
the Ad-^'^inistrator)

488 ;Velt Ifg. Incustry

(ap-oroved 7/20/34 by
t'le Administrator)

(l^t Same t^rpe as Code 373 above

(2^ Game type as Code 'To. 119 above

(3) Same tyae as Core -To. 3 above.

Cne condition,
^('n revised.

i aximum hours of ^'atch-

489 Safpty Razor and Safety
Hazor Blade J.'fgi Ind.
(approved 7/21/34 by
the Acviinistrator)

(1) Same t ^oe as Code "lo, 13 above.

(2) ."revision for sale only thru recoc
nized v;holesalers sta'''ed .

(3) Penalty for imitation of lab'ls,
etc. stayed.

9844

-216-

APPRLV£D CODE

COKDITlL'i'TS rs L?mi. L^ AP"^HOVAL

No.

Industry

490 Imported Date Fackiric Ind.
(approved 7/22/34 by
the Administrator)

492 Stereotrype Dry Hat Ind.
(approved 7/27/34 ty
the Administrator) .

One condition. Same type as Code i\To.
236 above.

(1) Same tyoe as Code No. 236 above

(2) Stud.y "orovided for Dossibility of
UTOward. revision of female emoloy-
ees.

493 Industrial Oil Burning
Equipment hff:. Industry
(axjproved 7/30/34 by
the Administrator)

495 Steel Joist Industry
(aoTDroved 8/1/34 by
the Administrator)

497 Textile Examining, Shrink-
ing and. Refinishing Ind.
(approved 8/6/34 by
the A>'ministrator)

One condition. Members of this industn;
given blanket exerarjtion from Oil Burner
Industry Code

(1) All wa^e rates and districts set
up in Schedule A eliminated and

a basic wage with a Southern dif-
ferential substituted therefor.

(2) Uuon termination of code, only
liabilities shall be liquidated
damages or unpaid assessments.

(3) Same tyoe as Code No. 369 (2) above

(1) Same tyoe as Code No. 373 above.

(2) Same type as Code No. 13 above.-

498 Corn Cob Pipe Industry
(approved 8/7/34 by
tne Administrator),

One condition. Same tyoe as Code No.
119 above.

499 Refrigerated ./arehousin^
Industry?-

(approved 8/8/34 by
tne Administrator)

501 Manuf acturimt' ind .Vhole-
sale Surgical Industry
(approved 8/9/54 by

tne Aaministrator)

502 Upward- Acting Door Ind.
(approved 8/11/34 by
the Administrator

One condition. Same t-pop ^s Code 'Jo.
369 (2) above.

(1) Same tjnoe as Code No. 369 (2) above

(2) Same tyoe as Code 288 (3) above

(l) Same type as Code No. 13 above.

9844

;i7-

Ko.

APPECVliD CUD£
Industry

CLUDITIL^'S I' L^DE:1 l~ AFPHOV;

502 Pretzel industry

(aporoved 0/11/34 by
the Administrator)

504 Animal Glue Industry
(ap-oroved 8/?-'?/34 by
the Administrator)

507 Surgical Distributors
Trade.

(aporoved 8/2'±/34 by
the Administrator)

508 Industry of Vvhole saline
Plumbing Products, Heat-
ing Products and/or Dis-
tributing Pipe, Fittings,
and. Valves.

(approved 8/25/54 by
the Administrator)

509 f arine Equi-oment r';fg.
Industry

(approved 8/27/34 by
the Administrator)

510 Assembled 7?a.tch Industry
(approved 3/27/34 by
the Administrator)

9844

One ccnc ition. Cede Autnority to iaves-
tigate' within cO days T.nd reiDort on
the effect of machine oxjerators and oven
men and general r^-^le labor as to ws.-'es.

(1)

(1)
(?)

(5)

(4)

(5)

(6)

(7)

(8)

(to

(1)
(2)

(1)

(3^

(1)

(2)

(3)
(4)

Present hour ^nd •■^a.^e orovisions,
vith exceuticns thereto, to be
ao^roved for 60 days, ?ind then
either those orovisions or nev
orovisions therein prescribed shall
be effective, according to +he
pleasure of the Administrator.

Same tyoe qs Code No. 359 (2) above
Definitions of outside salesmen and.
collectors revised.
i'Jew wage rates and hours prescribed
with exceptions thereto provided.
Provision for handicacoed -oersons
inserted

.('ages above minimum not to be re-
duced.

Provisions made for sefetv and
health of employees
Kodel provision for col"'ectin.^
information from industry
}]ev7 provision prescribed for imi-
tation of design, etc.
Same tyoe as Code No. 354 (2) above

Same t" je -as Code No.
Same t'^'oe as Code "To.

373 abo^'e.
236 abn-e.

Same t:/X)e as Code No. 235 above.
Provision deleted attem-otin^ to
tpc': on frei.-^ht and other chareos
as cost.
Sa'ne t'.^ce as Code No. 373 above.

Substitution of provision for re-
turn of defective products.
Am.eudec:. orov-ision r<= breaching of
contracts irith com-oetitoir.
I odel hours for of.fice employees/
Same tj'pe as Code ITo. 369 (2) above/

318-

No . Industry

511 Corrugated Rolled-i, e.t.^1
Culvert Fipp Industry
(aporcved 8/27/34 by
tne Administra'*"or)

514 Artificial Limli Mfg. Ind.
(apioroved 8/28/34 ij
the Ac3niinistrator )

517 I?ing Traveler I'ifg. Ind.
(aporoved 9/7/34 by
the Ac'ministrator')

518 Shuttle I 'fg. Industry
(a;pproved 9/7/34 "by
the Administrator

519 Natui-al Cleft Stone Ind.
(aporoved 9/11/34 hy
the Acrainistrator)

521 Adhesive and Ink Industry
(approved 9/19/34 by

the Adm inistrator)

522 Automotive Chemical
Specialties Iv.fg. Industry
(approved 9/27/34 by

the Administrator)

524 Pickle Packing Industry
(approved 10/4/34 by
aTIEB, G. a. Lynch)

525 Retail Trade in the Ter-
ritory of Hawaii
(approved in/ 15/34 by
NIP^, G. A. Lynch)

528 Pecan Shellin.r Industry
(approved in/ 23/ 34 by
NIRB, G. A. Lynch)

CCIvDITI'^ilS III URDl^. CF APPROVAL

(1) SaJiip tyoe as Corle No. 369 (2) above

(2) Same type as Code ';,To. 235 aboA^e

(1) Same tyoe as Code t^To.369 (2) above

(2) Same t.-'-pe as Code :Ro.5n7 (5) above

(3) ¥,0 member shall file revision ut)-
ward of filed orice within 48
hours,

(l) Order to become ef-^ective within
in days unless ^'ooc? cause shown
to contrary

One condition. Same tjnoe as Code No.
517 above.

One condition. Same t^/De as Code No.
419 (2) above.

One condition. Same tvne as Code No.
4in (5) above.

One conc'ition. Same t'.noe as Code No.
4in (3) above.

One condition. Same t^nje as Code No.
4in (3) above.

(1) Same type as Code No. 373 above

(2) I/Iinimum wages as to outside sales-
men stayed

(3) I'linim-om wages as to employees en-
ga^red at least dO^J of time outside
staj'^ed

(4) Same t^'pe as Code Fo. 517 above

One condition. Same t-',noe as Code No.
410 (3) above.

9844

-:jic

529 Ph.n,i-r;iacr'Uoic-.]. inC- Jdo-
lo.2,ic'-l Iiu i,i::.try
(r.^;?rovpd 10/."'5/r '. Dy
ill?3, G-. A. L-nc'ii)

531 Stainef^^- a;iu Leadec' G-Lasc
I:ic -'iptry

(a/pproved ll/s/Cv''. "oy
SlZb, YiT. A. i±a.rriirio,n)

53'1- Horve "a-ir DrRssinj Iiid,
(s.r.->roved ll/-.,4/' .■■! uy
iTInIi, 7. A. .-::^.rriin'in)

535 Lrattico Clotli IL>.'» Ind.
(approved l.^/ZS/'Z^ 'oy
rni?, 7. A. :narrir:-n)

536 Ciilorlne Control A ■;•'?.-
ratuG Ii'.durtrr ar.;' Tra'"e
(c:v:-,rQved l,?/l3/C4- ty

Ellffi, r. A. &-rin'in)

55c WoMen'r- '.'ec"'?"ear 'ind
Scarf }'f^, Ir.d-actry
(ayxoroved lii/lS/S-i 'by

1113E , Y'. A, irarriinrji)

54r iictpil 1,'op.t Trade

(av-roved 12/:;l/G4 ty
the Prccident)

CC-'DI JIG'S I.T 0"1lL:^ 0? APniOVAL

One condition, ^Sti-.tic-ticr- to 'be jatlier-
oc b;v Code Authority in 4 months with
the vlo'.- 01 ancno.in::; or othervlcc, the
hours :\r.d va^jos provisions ir. the cede,

0: •-' condition. Providing for suhmiosion
of fividc.icc to support vai;je dd'ferentials
based u '0:i classes of -irocLv-Cts.

One coiidioion. Sanr t;-;ie as Cod.e I'o.
517 above.

O'.ie co.-dition.
517 ahovG.

Sar.ie ''^}npe as Code llo,

One cor.di '-ion.- .Sant. tr^-pe as .Code IIo.
"17 ?bnve.

(l) Sxe?.r)tion niven to manm^ctiirers of
dresses vhere snch nec''r.'ear mad.e
1:\ c rn jiuicbion vith the dress in
tViO ssrac shop
(?) SoxTj ty->e as Code llo. 54 (l) ahove
(■:') ".axiniir.1 cash discount -provision

stayed i^endin^; study, and a maxi-
inviw "orovided d.urin{^ that period.

(l) Definition of indnstry amended, as

nell .as that of "es^.^hlish-ient" ,
(/3) Srj-iC type as Code ITo, 336 (4) above
(o) ?ollo\ in^;,, provisions stayed Uiitil
siiitahle suustit"'itGs may he fjinid;
iiisroprcsentation of non-confomin^
articles; nisora.idin." or lahelincj
pricing provisions, during enercency
and 1 herv.'i s e ,

541 Flat Glass Hi;:-. Industry
(approved 12/?2/34 "by
ITJIffl, W. A. K*,rriman")

543 r.otor Vehicle [Maintenance
Irade

(a,pproved 1/13/35 'oy
the President)

One condition. Stay oi exceptions to
naximu.;i ho\>rs d.irin^:: peah period.s set
un hy rn;'ustry.

(1) Sp.r.:3 ty^e as Code Ho. 373 ah ova,

(2) price ciitting, e;;er~ency and re-
cell of hid p revisions stayed
ui'xtil further order.

)84-^

APT'T^OT'ED CODE

?44 Auto Hebuildivn; -xiid :;c-
finic-hirii" 'I^r-^Ae
(:v-y roved l/;>l/35 by
tiie President)

545 >.tiiral Or.anic Productc
Irjrustry

(--■Tovad l/-:ji/S5 ty
I'ini;, ^. A. "■r-.rrinan)

'"'-7 Seed Trade

( o:>rovcd ,'j/;:/",5 oi?

IIIIv:, W. A. Ho,rrinian)

543 Ci£,,-u-ctte, S:roIf , c-iew-
ij^ig v'.nci. Srno::int"; Tutacco
Mfi3,-. Industry
(approved ^fd/?.^ by
ti'ie President)

551 Clock Hi-. lulustry
(approved ,3/2S/35 by
2TIS5, W. A. Harrimn)

552 Music Publishing: lucustrj
A-.vproved S/-'/;3'5 by
ITIEB, ?J, A. ":Iarrinn,n)

553 Hestnujrant Trade ih the
Territory of -lanaii
(ap2:)rovod 3/3/35 by

illPU, YiT. A. Harriman)

554

556

9844

'r;IJic ArtE^ Industry in
tile I'crritnry of yawaii
(a-;proved 3/7/55 by
hllffl, W. A, Harriman)

2inc Industry
(aii2\roved 3/2S/35 by
ITIEB, W, A. Rarrinan)

Tnolesale and Ptetail Auto-^
mobile Sales, Suoply Repair,
lirantenance and Service In-
dustry in the Territory of
Hawaii (approved 3/26/35 b^^
HIPdB, W. A. Harriman)

-220-

coiTPiTioHs r.- ojo:np o: ArP.iovAL

(■3) Pen-.lty of not particiriatin- in
election fo^ not ^^ayin^, assess-
iifi^ts, etc. stayed uatil after
the c^de aut ority is initially

(1)

i-ifi t:-e as Code Ho. 543 (2) above.

(1) S.-i.ie t-'-pe

Code

0. 533 above.

One condition. Provisions CTi-.rantee-
ing against decline of -rice either be-
fore or after delivery, or canceling-
of contracts to avoid marhet loss °
stayed pending; further order.

(1)

Study by Research and Planning
on v-aj^es and hours provided for
v/ith reservation to Board to tpi-e
action after due notice as it
deems necessary.

lg condition. Same t\me a--
:^69 (2) above.

Code Ho,

--.e condition. Ap-proval of code shall
iio. conc.one or sanction any acts alle-ed
in tnc petition filed in case noxj pend-
i^k m J. S. District Court, or rny de-
crees vmicli nay be entered therein. '

(1) Saiae type as Code Ho. 474 (l) above
U; Same tj-pg as Code Ho. 517 above.

(1) Sane type as Code Ho. 474 (l) above
I..; Same tynoc as Code Ho. 517 above

(1)
(-)

(1)
(a)

(•^0

Sane t;y-pe as Code Ho, 419 (2) pbove
Impartial investi:,'ator to review
conditions in South as to code vraces
11^}; P°ssiDilicy of revision in 90 days
Same oj^se as Code Ho. 474 (l) above
Snjue t.^HDe as Code No. 517 above".
Entire price structure (jpen price
filinc, emergency and accounting
provisions) stayed pending shovdng
of need therefor.

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 of the various trades and
industries heretofore subject to codes of 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 Review.

The study sections set up in the Division of Review covered these areas: industry
studies, foreign trade studies, labor studies, trade practice studies, statistical studios,
legal studies, administration studies, miscellaneous studies, and the writing of code 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 HISTORIES

The Code Histories are documented accounts of the formation 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 which were held, and
the activities in connection with 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 Commerce in typewritten form.
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^ 1§, Contents of Code His to ries , will be found the outline which govarned 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 worthy
of mention are the Volumes I, II and III which constitute the material officially submitted
to the President in support of the recommendation for approval of each code. These volumes
9768—1.

-ii -

set forth the origination of the codes, 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 amendments, 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 work of the Division of Review a considerable number of studies and compilations
of >..ata (other than those noted below in the Evidence Studies Series and the Statistical
Material Series) have been made. These are listed below, grouped according to the char-
acter of the material. (In Work Ma terials No . 17 . Tentative Ou tlines and Sum maries of
Studies in Process , the materials are fully described) .

I ndustry Studies

Automobile Industry, An Economic Survey of

Bituminous Coal Industry under Free Competition and Code Regulation, Ecnomic 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 - Exports 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 Twenty-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

iVomen's Apparel Industry, Some Aspects of the

T rade Practic e Studies

Commodities, Information Concerning; A Study of NRA and Related Experiences in Control

Distribution, Manufacturers' Control of: Trade Practice Provisions in Selected NRA Cod^s

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.

Trade Practice Rules of The Federal Trade Commission (1914-1936); A classification for

comparision with Trade 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 1933-35

Fur Manufacturing, Commission Report on Wages 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 Industri5.1 Relations
PRA Census of Employment, June, October, 1933
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

Approved Codes in Industry Groups, Classification of

Basic Code, the — (Administrative Order X-61)

Code Authorities' and Their part in the Administration of the NIRA
Part A. Introduction
Part B. Nature, Composition and Organization of Code Authorities

9768—3 .

(irfj lo RioecEfl.

'.1 ;. .1 r.

.•HOiBisfC .

;^:li^U liii^

- Iv -

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.

THE EVIDENCE STUDIES SERIES

The Evidence Studies were originally undertaken to gather material for pending court
cases. After the Schechter decision the project was continued in order to assemble data for
use in connection with the studies of the Division of Review. The data are particularly
concerned with the nature, size and operations of the industry; and with the relation of the
industry to interstate commerce. The industries covered by the Evidence Studies account for
more than one-half of the total number of workers under codes. The list of those studies
follows:

Automobile Manufacturing Industry
Automotive Parts and Equipment Industry
Baking Industry

Boot and Shoe Manufacturing Industry
Bottled Soft Drink Industry
Builders' Supplies Industry
Canning Industry
Chemical Manufacturing Industry
Cigar Manufacturing Industry
Coat 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 observed in using the
data, the technical methods employed, and the applicability of the material to the study of
the industries concerned. The following numbers appear in the series:
9768—5.

Asphalt Shingle and Roofing Industry Fertilizer Industry

Business Furniture Funeral Supply Industry

Candy Manufacturing Industry Glass Container Industry

Carpet and Rug Industry Ice Manufacturing Industry

Cement Industry Knitted Outerwear Industry

Cleaning and Dyeing Trade Paint, Varnish, ana 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 carec 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 accessible
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.
9768—6 .