BOSTON PUBUCUBRARV
3 9999 06317 52U "
OFFICE OF NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
THE PRESIDENT'S REEMPLOYMENT AGREEMENT
By
H. Conrad Hoover
WORK MATERIALS # 82
^ c^^^\.\ Av^
NRA ORGANIZATION STUDIES SECTION
MARCH, 1936
OijiICE Oi RATIONAL pJiCuV'-;HY .JDMIITISTiiATIOF
DIVISION or ilEVIEW
THE FKLSIDET'T'S fi^KivULOYkErT AGiJiiEMENT
By .
Ho Conrr-d Hoover
NBA OHGAl'IZATIOr SrjDIES SIJCTIGl.I
lIARCH 1936
?819
This study of "The President's Reemployment Agree^'ient" v;as prepared
ty n'^r. H. Conrpo Hoover of -jho ITHA Organizpti^n Studies Section, ivir.
Vi'illiam W. Fardslcy in charge.
The Agreement ras entered into "by laore than t'-o million employers
as ? ster in the reemployment progrr-.a initipted by the National Industrial
Recovtry Act, This report treats of the Agreement in considerable detril,
including discussion of its development, the problems of its administration,
and the orgpnization established by the National Recovery Administration
to handle the acministrr-tive details. Certain conclusions and recom-
mendations, found in Chapter YII, and Anpenaix I suggest areas for further
research.
In the falT of 1933, a census "'as taken vhich shov/ed striking response
on the -Dart of industry ^-ith respect to an increase m employment and
payrolls, V/ork materials No^ 63, "iji Analysis of the PRA Census", by
Mr. Max Sasuly, sets forth in quantitative terms the extent of this
response.
At the back of this report \''i^l be found a orief statement of the
studies •'ondertaken by theEivision of Reviev*
L, G. Liar shall
Eirector, Division ofRevie^''
March 19, 1936
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TABLil Oi' GOFTENTS
?AC-»;
Generpl Beviev viii
Introductior , ix
Cho.pter I, the President 's jieemplo'.-nient Irograrn 1
I. Administrption For Industrial i.ecovery 1
A. Adainistrptor Tor Industripl hecovery 1
B. Special Industrirl recovery ;oard 1
1. Origin 1
?e Acts Ferfonaed Fertaininj; to the Tr.A 1
3. Dis50lution and Creation of the National
i'aerr;ency Council ?
II . The Flan and its D>^rveloi:;i:ient ?
A. District Oi'iices, DeTDartment of Commerce 3
P. The Fret'ident 't. l-.ee'iTCloyiaent Lducation C'-^mpaign . 4
1, ■^arepu of Fuolic ...elrtions, UjA 4
r 0 Loc-'^l F-A Coiainittees 4
C. T'i strict l-.ecovery Boards 5
D. State ' ecovery Boards 5
E. otate ";ecover"' Councils 6
F. Tbe Frer-idcnt ' s ^eetQ- lovment "rive 6
1. Tne Z.i"nlov,;rs ' Fart 6
(a) :arnin.-; ?nc Securing;; the Tdlue iJpgle ... 5
(b) Larnin?;' and oecurin^": the Blue j^pgle in
Exceptional case? 7
(l) here a Core riad "'een S^J-bnitted .. 7
(e) .here a Code -Ipd Been Approved ... 7
(o) Cases of Incividual ilsrcship 8
2. The Sraploveer. ' Fart 6
3. Tne Public ' s Fart , 6
&. ?FA Folicy i^oard 8
Chapter II, Fresicent 's HeemnloT.ient A^j: ecraent 9
I. Authority 9
I I . Origin 9
III. I'ature 10
I'"'. Furpose 11
A. To Bridge Time I-Jeeced to Brin/-^ i.uoiabf^-rs of Trades
and Industries Under Codes 11
B. To ilirainate Crilc Labor 11
C. To Spread Purci^asing Fovrer 11
B. To Create FuDlic Opinion 11
i]. To r.elieve Unfrir Corapetiticn Between Inter st^-^te
and Intrastate i^.nterprises 11
I. To Beternine Froblens of Ti'Pdes and/or Industries 12
G-. To Develop a sale or Stanc'ard For Labor Conditions
in all Trades and Industries in all Locrlities
at about the same Time 15
H. To TDretjare ^e;aters of Trjde and Industries For
Codes. 12
I. To Peisucde, Irciiectly, Industries to Sujait Cocesl?
J. To Ease Co-apetitive Inequplities "■'.et'='ecn Codified
and Uncodified Inoustirer 1?
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tclS
FAG-E
V. FroviGions of the Agreement
VI. Explan.-'tions anc'. Irterrretationc of the ;^reeraent 15
A. Fpracraph rl, Guild Labor 15
1. Ofricial SxplPUPtion 1^
B. FarPfi'raph #?, Fours Apolicrble to Mor.-Ir/3\istripl
'orkerspnd Store or Service Operptioni? 15
1. Of ficii-1 L.\.planrtions 1^
2. Lmi-lo"ments Included in Farp.grnph fS (Non-Indus-
trirl '..orVers) l^
3. EraiDloyments Uot Intended To Be Covered by FFJi . 16
4. FJceimDtions i'rom .,iaxi;aiam Koar Frovir.ions 16
(a) ' Paraprarh -4, F.iA 1^
(b) Galencar Yepr-End Inventories Ic^
(c) Fiscrl Year-Snc Inventories • 16
5. Mi'iimara " rees Anrlicpble to Faragrrph #?
E:T.ployees
6. Store or Service Orjerptions ••• 1^
C. Paragra-oh #3, ::sxiniu;a Hours Applicable to Industrial
or ker &
1. Official iuxpl ana t ions 1"
?. iiodilicrtion of Faragrrpn ^3 • 1'^
3, Effect of {.iodif ication of Faragrapn *^3 on
Signerp of FRA ■*■
4, Smulovnents !'Iot Intended to De Covered by Pl-A . 1?
5, Exen-Dtiono From ..axirna;i Hours Frovisions 1?
6, rlJLtensions of the PFJl • 1'^
7, i.;inimu-a .ageB AoTjlicaole to "aragrapn -r3
il-raployees ;
r. Paragraph *4, i.uloyees „xe.iptcd from ivlaxiimim
Fours Frovisions ^
1. Off ici:-^l hxplan.'-tionii 1^
2. ^mployuic-nts Uot Intended to be Covered by FRA . 16
3. jinergency iaintensnce anc henrir ork 16
4. E>.ecutive pnd managers .^ 1^
5. Exe'nptions from .laiimni hour provisions 18
(a) Calendar Yefr-iilnd Inventories 16
(d) Fi'^-cal Yerr-^.na Inventories 19
(c) :pnr-ers or i^ecutivet: Atceiving liore Tnsn
$35.00 per .eek 1^
(c) Frot esKional jrersons 1=*
(e) To-rs Of Lesr Tnan £500 Population 19
(i ) O'^ner Operated Storeb 19
E. Faragra-Dh $5, . inirrr^ia \..a-:es Anplicablo to Fon-
Industrial Yorkers = ^^
1. Oificial E.'-planationb -^ 1^
2. E:anlo}^inents to -.nich Faxrgrsph t*6, TlA iiinimum
ares are Aprlicable 19
3. Smrlovments 1-Tot Intended to be Covered by rFA . 19
4. Fxcentions to ?ncl Fxcr-'ptions iro i FliA "linimu'Ti
',ai-;e Frovisions ^^
5. I Mediate Trade Area ""^
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FAOS
F. Fpragraph =^6, Miniimin .e^e^ Applicatle to Indus-
trial ..orkers r:0
1. Off ici?-l Ji^tDleriEtionG 20
2. Eraplovments to '.■nich I-arpgraph #5, PhA Llininiura
V.'flges pre Aprlicpole 20
3. Era-ploYinents not Intenc'ed to be Covtred by ^lA 30
4. ZxctDtione to snd '^xenptions froia ^hA i-Iininium
vta';e Provisions 20
5. Kourl7 Rate 20
G. Para^^raxih #7, Co.apensation for liimiloyirient 20
1. Of-^'icial i:xDl?natiors and Basic InterpretationsJO
?. Preservation o± a.'-;e "differentials ?0
3, ProblBi.'.E ?1
H. Paragraph ^6, ijitiEuuterfu. :e 21
1. Official '.xplanr tier , 21
I. Faragrach v'B, Antiprof iteering 21
1. Oiiicial Explanation 2?
2. i^rices 22
J. raragra^^ii 410, Cooreration 22
1. Official .:.x-Dlanntion 22
K. Faragra'cii =^11, Cooes 22
1. Official rJxplrnatior. 22
L. Paragraph #12 , Apnro-oriate Ac justrnents 2?
1, Official Lxplana ;,ion 22
2. ..elief to G-overnment Contractors 22
'.'I, Paragraph #13, Ter'ii nation of ^nd Suostitution to
the Fr.A 22
1. Official J2:xplanation 23
2. Effect of Approval of a Core upon Continuation
of the rRA 23
N. Parafi;raph #14, i-is.cepti'ons 23
1. Official Explanation 24
VII. Duraction of the ji^greeinent 24
A. Original Agree ::ient 24
3. lirst ?jctension ;-4
C. Second ano .. iral jixtensior 25
II. Present Status 26
Chapter III, Pj-esicent's Lee roloyient A'-'^re' nent -olicies 27
I. Initial "olicies 27
I I . PPJ^ -olicy Poard 27
A. Origin am" -'urnose 27
B. Organization 27
C. Teriaination 27
III . 31ue Pa -le Division, YrA 28
A. Origin and Organization 28
P. Sections Hanc'lin:': PRA Policies 26
C. l.e organization 28
r. TeriQinatior. 28
IV. Conroliande Division, rx-.A 28
A. Origin an'-': Blue Eagle Pranch 28
3... Labor and Adninistrative Branches 29
C. Analysis Braiich 29
gq-i q - • Termination 29
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^f. Fationrl CoiTlirnce 3oarf" T:9
A. Oi i dn ; no. Fiu pose , 2'd
B. Oi-ganization ?9
C. Termir?ixion 50
VI. Advisor''- Coancil, Co .TOliFnce Division, H.Ji oO
VI I . Compliance Coancil , N-Ji. ['0
VIII. Substitatior.s to the FiA PO
A. Autnoritv TO
?. i'iodiiicetiors of Su>jf titutiorip, 31
C. InstructionE: lor f'aij littinr Petitions ror
Substitutions = 31
1. If ?■ Code v"^e on 'lie --'ith the Control division
KRA 31
?. If no Ccc'e had ucen 3ub':utted to Control
Pivision 31
D. Policies ..-'ollo'-ed by tne r'A '^olicy J-^oard in
Considering Petitions for SuDstitutionc to the FhA . 31
1, Proicsed Code Provisions vs. FIiA Provisions .... 31
?. Abfience of Proposed Co: e Provibions 31
3. Junctions of FI-J^ Policy or^rc 3^
4. Procedure 32
5. Per-cline for Sur.initting Petitions for Sub-
stitutions 33
E. 1-V'ture of Substitution to the PnA and Industries
Affected 33
P. Aionlication of Approved Suo£ titutions 34
G. Cjnments 35
IX. Interpretatiors of the P~J. 37
A. St/ecial Inter-oi etations Co.i. dttee 37
B. Fational Labor Board 37
C. FFJt Policy o-rd 38
D. Interpretation Section, l-'ue Eagle Divisioi^, IL-A ... 38
X. E---ceptions to the P?.A (Cases oi Iririvicual Hardsbi-o) .... 38
A. Author it-' 38
B. Essential Information r.unaired to be Suomitted by
Petitioners , 39
C. E:cceptions Section, (lue La^le Division, WPA. 40
1. Policies .Vollo""ed oy NIA. in Considering
Petitions for j^.ceiitions to the PrLA 41
2. Procedure Policed oy ]'j-.A in Considerirg
Petitions for E.vceotions to the PP;A 43
D. Local VEA Core-oliance Poards 44
1. Petitions for Ej^ceotiors Presented Under
Faragranii =^14, FIiA . 44
(a) local HRA Coinoliance Board i-e^-,ulations for
Handling Paragranh =fl4 Petitions 45
2. Petitions for Per:nis&ion to Operate Under Union
Contracts 46
(a) Local WPJL COi'"'lirnce Poard Pe-ulations for
Handling 46
E. State FP.A Coiiiolience ."irectors 48
F. Volume and Disnosition , 49
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PAGE
XI. Government Contracts and Loans 49
A. Awarding of Governnent Contrpcts or Loans Contingent
uuon CoraT3li.^nce '"ith FJ-.A or Approved CodeE; 49
1. .::--eGutive Order -6246 49
c. ?>ecutive Order =rt:/646 oO
3, Puolic -.'orks Acmiristrption Ac-^lations 51
3, Ilelief to Government 3ontr?ctors 51
1. Act Providinv^ Relief to Government Contr-^ctors 5?
XII. Enforcement of FHA 52
A. Public Opinion , , 52
S. Surrender of the Blue Eagle 53
C. Types of ^fiolations and DisiDOsition 54
Chapter I?, Adminirtr-'^tion of the President's J.<ee-a-oloyment
A-gree lent 56
I. Headquarters ('u'sshinyton, ?. 0.1 56
A. Blue' Eaf^le Division, WrA 56
1. Executive Section 56
2. ixecovery Boards b' ction 56
3. Comrjlaints Section 56
4. Reor^i-anization 55
5. F: ocedure 57
a. Termination 57
B. Complia.nce Division, iL.A 58
C. >'ational Ccmnliance .■op.i'd., IhJi. 5S
I>. Adjustment of PrJi. Coiplaints ant iiestoration of
Blue Eagle 59
II. I'ield 59
A. Local ;ediation boards , 59
B. Local NFJ\. Coinpliance Boards 60
1. Origin 60
2. P^arpose 60
0. Organization 61
4, lieprecentation 61
5, Permanent Ci airman 61
6, Nature 62
7, Procedure for i.rnc.ling Coraplaints oi' Non-
Compliance i--ith the PEA 62
8, Duration 67
C. State ITPA Co:apliance Difi^ctors 67
D. Hegional Administration 68
1. Origin 68
2. F.egions 68
3. Junctions and Powers of F.efjional Directors ... 69
4. He.^ional Compliance Councils 69
Chapter V, Results end Accompli shuents 71
I. Signatories to the FrJi 71
II • Emriloyment and Payrolls 71
III. Co-nplirnce 71
Chapter VI , Problems 72
I. Policies and Inter-nretf tions 72
A.. Delay in Development pnc Promulgation 72
B. Fear that it rras I;apGsr.iole to Conmly and Stay in
Business 72
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9819
3. i'err thpt the ''^resicent :;ifl;ht ixercise the Power
Deleepted ur.cer Section 10{o), Yliik 72
D. ii^ilure oi Substitutions to the PllA to Define
i.lernberFhip and Enrolo;/- rs 73
E. Field Agencies 73
F. rifficulty pnd Failure oi" Field Atjencies to
Fstf-blish Alleged Violations 74
Ct. Centralization vs. Pecentralization of a^nforccment . 74
H. Public Opinion Sole 3asis of Enforcement 74
Chapter VII, Conclusionc. and ilecommendations 75
Append ix I '^6
Appendix. A. iiemornndum on para.'jraph -r--? of the FRA 77
Appendix 7-. Blue Eagle Division, Ivr^A 80
Appendix C. Blue Zpgle Division, NPJl reorganization 65
Ap'^endix D. Coiapliance Division, YhA B7
Appendix k,. National Compliance Board 94
Appendix F. FHA Substitutions 96
Appendix G. G-eneral Interpretations, Explanations, In-
structions and itulin'^ Pegardin.^ the PFlA 132
Appendix 11. Public Act 7^369 177
Apnendix I. FEA Census-Tabulation by States, Employment
ano Payrolls; June, October, 1933 179
9819
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Section 1 of the National Industrial RecoYeiy Act declared
tne existence of a nntional emerf^ency productive of "ddespread unemploy-
ment and disorganization of industry. One '--eapon adopted for combatting
this emergency was the Fresicent's Rncmployment Agreement, ?'idely known
as the PRA, '^hich was announced July cO, 1933 as an agreement to be entered
into with the President by employers with the primary objectives of
increasing employment and at the same time expediting the code making
program of the Kation-.l Recovery Administration. The A=°:reement was
based on Section 4a of the Recovery Act and its provisions dealt mainly
rith child labor, maxim'ara hours and jainimura wages. It did not include
any trade practice provisions.
This is a study of the Agreement, including its development
and its ac;ninistration by ITLA.
TRA policies '-'ere developed r.no ad.ninistered by and tnrough
the NBA Administrator, various boards and councils and field agencies.
The Agreement was entirely voluntary and the only method oi enforcing
compliance was the withdrawal of an employer's right to use the emblem
adopted to symbolize participation in the Agreement - the ^rell-known
Blue Lagle.
Taking everything into consideration, the PltA. was unquestionably
a success and undoubtedly accoinplisaed as much if not more than was
expected of it, Nevertheless, it is possible that the earlier and more
defini*-e development of policies with respect to the agreement, particu-
larly as to substitutions for certain provisions granted industries
and as to exceptions from iull compliance with its terms, i-ould have
made it even more effective.
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9619
INTRODUCTION
In -ipproving the National Industri.-^l Recovery Act, (*) the
President 'of the United States and the 73d Congress declared the
existence of a National Emergency of widespread Tinemployment and dis-
organization of Industry, ^hich "burdened interstate and foreign com-
merce, affected the puhlic welfare, and undermined the standards of
living of the American people. To comhat the declared national
emergency, the NIHA authorized the President, in addition to other
"broad powers, to enter into agreements with, and to approve voluntary
agreements "between and among, persons engaged in a trade or industry,
later organizations, and trade or industrial organizations, associa-
tions, or groups, relating to any trade or industry, if in his judg-
ment such agreements would aid in effectuating the policy of this
title with respect to transactions in or affecting interstate or
foreign commerce, and would "be consistent with the requirements of
clause (2) of suhsection (a) of section 3 for a code of fair competi-
tion. (NJRA, Title I, Section 4(a)
Although this report is intended to be limited to a discussion of
the President's Reemployment Agreement, its origin, development, pro-
visions, interpretations, rulings, errola-nations, su'bsti tut ions, ex-
ceptions, policies, administration, results nnd pro"blems; it should "be
kept in mind that "The President's Reemployment Program" discussed in
Chapter I and the Agreement itself w^re also instrumental in developing
and creating interest in Codes of Pair Competition on the part of the
Puhlic and especially employers '^ho later "became subject to provisions
of approved Codes.
(*) (Pu"blic - No. 67- 73d Congress (H. R. 5755), approved on June,
16, 1933.
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.C-il4?T33-^i
I.' ad;:;iiiist3atioi" fcr ijdust:.ul ?zcov3HY
A. AIi;.;I:TIS:?-^-1?0R for I'JDUS'JRIAL 1.ZC0V3RY
PuTS^UMit to authority ;Trovided in Title I, i'.IRA, tho President, on
Jiine 16, 1933, aopointod Genarr'.l H-u^h Johnson to bo the Adjninistrator for
Industrial Recovery, and ?.uthorized him on July 15, 1'3"3, subject to the
general a;oproval of the &7ec:.al Industrial Recovery Board, to a^-^point the
necessary personnel on a perr.Ta.nent hasis, to fi;c tiieir compensation, and
to conduct such hearint;s and to c::ercise such othei^ f^oiictions as were
vested in the President "by Title I, IIIRA, except the a-yTroval of codes,
or mslcin^. agreements, or issxia.nce of licenses, or e::erciGe of powers con-
ferred in Section 3 (e), 6 (c), 8 (h), 9 and 10. (Execiitive Orders #6173
and #-6205-A) .
3. SrZCIAL I1IDUST:-J.-;L R":C0V~RY 30a?D (Juiie 16, 1S33 to
Decei-noer 18, 1933)
1. ORiaiE.
Pursuajit to authority provided in Title I, 1:IR;x, the President, on
June 16, 1933, also appointed a S'^ecial Indoistrial Recovery Zoard to he
composed of the follonin^ merahers: The Secret?,ry of Commerce, Clia-irman;
The Attorney General; the Secretary of the Interior; the Secretary of
A,:-, ri culture; the Sec-retary of Labor; the director of the Budget; the
Adjninistrator for Inductrial Recovv^ry and the Chairraavi of the Federal
Trade Commission.
2. ACTS PZ5F0RI.3D PSRTAIhi.'G TO THZ PR.I '
Acts performed "by the Special Industrial "ecovery Board pertaining
to the PRA were:
(a) Approval of IIRA Bulletin -"l- "Statement By the President of the
United States of America Outlining Policies of ; the HRA.", Jtine 16, 1933.
(o) Voted that arran^^ements he made for usin^, tne ,26 District Offices
of tr.e Department of Cornrrierce to act as ~3;_,ional. Representatives of LIRA.
(iTRA Release #40, dated July 10, l.>3o).
(c) A^-n-oval of HPA Bulletin vl^S- "The Prei^ident's Reemployment
Program," July .30, 1933. ■
(d) Ap --roval of ITPuA Bulletin i;=D~ "Re ulatrons On Procedure For
Local HPA. Cor.r?liance Boards", Se-tenher L?, 1S33. •
(e) Aptroval of IIRA Bulletin )=6- "Suhstituted wages and riours Pro-
visions of the PPA.", Octooer 14, 1933.
(f) It is also possiLOle that the Special Industrial Recover^'' 3o?,rd
considered the 31 Basic Inter-^retations of the PRA, later incorporated
in iTRA Bulletin -,/4.
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3. DISSOLUTION (CSHATIOI' OF TIIS ITATIOITAL Z;.Z2GZ'CY CCITJCIL) .
On Decemoer 18, 1952, the l-resident ordered th?t ?.ll members of the
Special Incliistrial llecoverir I^oard, incx-cuiin^ the Attorney General, the
Director of the 3iidt^et and the Chairman of the Federal Trade Commission,
be designated and included as members of the national Emergency Cotincil,
created on ITovember 17, 1933, and tlia.t all f-Jiictions and duties of said
Board here-'^.fter be e:-:erciscd and -serforraed by said Council. (Sxecutive
Orders #6515 and 7^ 6433-A) .
II. TIC PUi: AID ITS D^^ZlLO'^ViZJI
In si^-nlnj^ the law (ilational Industrial Recovjry Act) on June 15,
1933, the President said:
"The first ^art of the Act prooooes to our industry a ^reat
spontaneous cooperation .to put millions of men bach to their
regular jobs this summer. The idea is cimly for enroloyers
to hire more men to do the existing, ^-orl: o-y reducinj^ the \70rk
hours of each nan's neek and at the same time payint,, a liv-
ing; \-i?.za for the shorter v/eeh.
It is a challenge to industry which has long insisted tlrnt, . . ■
given the right to act in -oiiison, it could do much for the
general good v/hich has hitherto been "onlavful. From todaj^ it
has tha.t right. It is not only the slackers within trade
grouis who may stand in the path of our common -ur-iose. In
a sense these groras com;pete with er.cn other, and no single
industry, and no s,e-)P.v?:te cluster of industries, can do this
job alone, for exactly the same reason that no sini^le enrployer
can do it alone. In other words, we can imagine such a. thing
as a slackor industry.
This law is also a challenge to labor, h'orkers, too, are here
given a nev^ cha.rter of rights long sought and hitherto denied.
But they laiov/ th-at the first move e;pected by the i^ation is a
great cooperation of all ernr-iloyers, by one single mass action,
to improve the case of workers on a scale never. attempted in
--'jiy nation. Industries can do this only if they lia.ve the
support of the whole public and es-iTecially, of their ovm workers.
It is, further, a challenge to .-^c'liiinistration. We are relaxing
some of the safegua.rds of the antitrust laws. The ^ublic must bo
protected against the abuses tha-t led to their en-'-ctment, and to
this end we are -outting in --)l?ce- of old princi-:)las of unchecked
corrnetition some nevT Government controls.
finally, this law is a challenge to our v/hole -Teople. There is
no power in American that can force against the public will such
action as w e reouire. But there is nc grouo in America tlia.t can
withstand the force of an aroused ;:^ublic opinion. This great
cooperation c-an succeed only if t:j)se y/ho bravely go forward to
restore jobs have -agressive public support and those who lag are
made to feel the full weight of -yabli'c disa -/proval. "
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"3- '
In anticipation of Codes of S'?iir Co.a-:^etition -irovicled for in the
Act, and the President's loliCv to put -^eoiole "b-'Ch to work, to eliminate
starvation varies and to cons-ume the e."cesr, capacit; of industrial -olants
resulting from mass -production - pricot sorred far in advance of wages,
enrsloi^nont -nd -rarc]i--sing -oc-'er, as ^ .o::!le not in ousiness as well as
those engaged in a trade or industry hegan to buy predicts and store
them in warehouses. The raising of wages and shortening of working
hours increased coets. Com-panies, localities and indn.stries were com-
■jeting for trade and labor. It was necessary to develo-o a rule or
authoritative standard for labor conditions in all industry and all
localities at about the s-me ti;ne. All industries were not organized
into tradie associations. Ivia:i;/ applying for codes were not ready to re-
ceive them. Intrastate commerce and industry competed with interstate
commerce and industry. Immediate action was inperative.
At the outset it was aonar-int th-i't tlie orocess required in approving
codes which involved ore-oaration, submission and the holding of hearings
v.?,s not conducive to immediate action, at leost si:: weeks was i-eqxiired
to 3-)ut a major code throu_;h the mill. It was indispensable to do some-
thing to avert a new collapse and crash, A shorter method was needed
to bridge the time involved in bringing ind.ustries under codes. To
bridge this gap and to e:r7edite his r iem-olojTaent program the President
offered to enter into an individual agreement with each member of a
trade and/or industry T.'hich became Icnovrn as the Presid.ent's Reemployment
Agreement (PRA.) .
A. DISTRICT OFriCZS. DS?AaTi.2rJT OF G0i.:,:3IlC3.
On July 10, 1953 the Siecial Industrial Recover;^- Board voted tha.t
arrangements be made to use the 26 District Offices of the Department
of Commerce as regional IIRA. representatives. H?A v/as to pay for extra
work done by the District Offices on aqcorjit of services rendered NRA
(NRA Release #40) .
Ifenagers of the Departmeiit of Commerce District Offices were
called to Washington on July 11, 1933 ''oy General Jolmson for the pur-
pose of determining how they might best cooperate with HRA rnd to re-
ceive instructions 'hy various ITRA officials regarding its plans,
policies and purposes.
According to liaison cirQiil?.rs addressed, to District Offices by
L. H. Peebles, Liaison Offic-r, Bureau District Offic-s --^nd T\xUl, the
functions of the District Offices relating to the PRA were:
(1) Receive signed PRA's and render daily re;oorts to liRA as to
the nusiber received and. nv.mberof em5loyes covered-,
(2) Supply favorable lIRA infon.iation to the local press, chambers
of comir.erce a:id other civic bodies.
(5) Submit to lIRA all items of colorful p'oblicity.
(4) Issue simultaneously to the press and to post offices.
Lists of 31ue Zteigle employers in metropolitan areas.
(5) Che.cl:: signed certificates of Compliance ''.'ith lists of PRA. , ■
si^n-'^.torias.
(6) Subnit to ',insiii-aii:ton ■oetitiouf for e;;ce-?tions urider Prra-
gra-^li #14, ?2A. ' ' . ■ ■ -
(7) l:\irnisli ilPA ritli nars stories on ?HA cannai^n developments
in their loci ?.re'i.s, corml?.ints, Irbor troiil/lec aiid locc.l ITPA
editorials.
(3) Coopere.te T.dth Locp.I I!HA CcTiipliance Boards in an advisory
capacity,' only. In no c?sa y/ore they to issue arbitrary instructions
or lay dovrn rules and re^^ulations.
B. THB PRESIDZITI'S HBB::-LGYI.B:'T BBI:CaTI ■i:AL CALPAIGII
1. BUPZl^lU OP PUBLIC PdilLATIualS
With fev/ exce-^tions a law siich as the IIIHa, affecting long es-
tablished i:5ractices, natioi'.vdde in e iztent, cannot be adequately en-
forced without an aroused and almost ravanimous "oublic o^^mion. Realiz-
ing thi' , General Jolmson soon after his sT^ointment a-s AdTiinistr^tor
of the r^A. ;^lanned a nationwide educ-^tional caiii^aign designed to speed
the return of pros"Terity throw^htthe e:c5ansion of consuTier purchasing
■oover in accordance with the --rincrTl-js set lorth in the ITIBA.
Under the suTcrviBion of I.'ir. Ch?rles S. Horner, director of the
newly created Biireau of Public Relations, ITPA Public Relations Division,
the President's Reemployment Educational Campaign was launched on .'
July 21, 1933, to arotise )ublic interest in the President's Recrrroloy-
ment Program (lI?A Release #75), Organization, speahers and press
divisions v/ere set v.! u:ider I'lessrs. Prank R. '.Jilsnn, Louis J. Aber
and Robert St. Clair resoectively.
The 'Tresr: throughout- the country dis-^l?yod prominently in their
coluimis the rims, -lans, information and (Sr.ta furnished by l^RA. in press
releases. The radio was used c::tensivoly, speakers Bureaus were organized,
shorts were prepared -nd featured on the screens of motion picutre -and
legitimate theatres, radio stars and cor-!S of S"Tep.kers appealed in every
possible way to the patriotism of the -KJODle to_ sxipport the President
in tnis Drive in 'much the' same manner as they used in " .utting, across"
the Liberty Loan Drives during the Jorlf. V/ar.
2. LOCAL iIRA COi.u.JTTBBS : _
One of the first acts performed by i;.r. Horner as Director of the
5IRA Bureau of Public, Relations was to organize Local 1I3A CoiTiraittoes.
Over the si^gnature of General Johnson telegrams were sent to the
President's of Chambers rf Coiimercc or other leading civic oi-ganizations
in cities 10,000 populations and over, and letters in cases of cities
under 10,000 requesting them to take the initiative iraiiediately in
organizing carrroaign committees in their res'oective comm'ujiities to be
comroosed of 'the Llayor, the official heads of the CMmber of Commerce,
Clearing House Associatio'n, Rotax-y, Ki'/anis, Lions, Retail i.lerchants' ,
9819
-5-
Fcdcraticn cf Lator. Advertising Cliib, Federation ofJVomen's Gluts, ,
Welfare societies, Ministerial Association, 3eal Sstate Association,
and any other civic orf^anization v/nich in their judgement was repre-
sentative, of any innrotant element in the economic life of each com- •
munity.
These communications stated tliat the functions of the committees
were to direct a campaign of education and organization -../hich was to
"be a part of a national movement to speed the return of prosperity
through the e:qoansion of consumer purciiasing power in accordance with
the principles set forth in the HIRA.
According to a rei^ort made hy Mr. Korner, Local HRA Committees
were estahlishcd in some 6,220 towns and cities and he estimated that
there were approximately 1,500,000 volunteer workers in the field work-
ing under their raiporvision.
C . DISTRICT BSC0V351Y BOAHJS
On July 20, 1933, General Johnson and the Special Industrial
Rooovory Board au.thorized the creation of one district recovery hoard
of seven members to he appointed by the President for each cf the 26
districts of the Department of Cornruerce, to consider, advise, and re-
port to HEA on the progress of the execution of NIRA, and to T,ass upon
such matters as were referred to them for action by HRA.. The member-
ship of each District Recovery Board was to consist' of one person pro-
minent in each manufacture, retail trade, wholesale trade, banking,
farming, labor, and' social service who v:as v/illing to volunteer his
services without, compensation (HHA Bulletin -^S) . The local District
Ivlanagers of the Department of Commerce served as Secretaries to- the
Boards.
D. STAT3 F.3C0V3RY BOARDS
On July 20, 1933, General Johnson and tlie Special Industrial
Recovery Board annouiiced the creation for each state of a state
Recovery Board of nine members to be appointed by the President.
The board rias to serve without compensation and it v;as authorized to
select a chairman and secretary from among its ovm members (iTRA
Bulletin #3) .
The memberships were to be truly representative of commercial, in-
dustrial, labor, and civic interests nf each state. The State Recovery
Boards were to advise and report uroon the execution of ITIRA i'n their
states and to receive and act upon all mr.tters referred to them by HRA
or by their district boards. On August 9, 1933 General Johnson sent a
telegram to the governor of each state submitting the names of those
drafted by tlie President to serve as members of the State Board and re-
questing the governors to organize the Boards and allocate a section of
the state to each of the nine members. Meetings of State Recovery
Boards were subject to call of the governor. At the first meeting each
Board was authorized to decide upon and promulgate "its own rules and
Trocedure, .;.
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E. STATE rGCOVERY COU~ICILS
A State Recovery Council was also created lay General Johnson and
the Special Industrial Hecoveiy Board on July 20, 193o, to "be organized
by and to rerve in coo'oeration with each State Hecovery Board, Upon
application to the State Recovei-y Board by any state labor, manufactur-
ing, trade, civic, social-service or welfare association, organization,
or club, the presiding officer thereof v/as entitled, ex officio, to
membership on the State Recovery Coimcil. The fu:iction .of the council
was to recommend to the beard any necessary action with regard to the
organization presided over by any member of the council, to request
the services of the Board and of NRA in any proper matter to the end
of perfecting 3.nd strengthening e'.ny such organization, and to assist
to make available to the Administration of HRA the services of any such
organization (NRA Bulletin #3).
P. THE PRESIDEi^TT'S HEBIvPLOYI.lSNT DRIVE
General Jolinson on July 23, 1933 announced the appointment of
General Thomas S. Hammond, as Executive DirectoT .'of the President's
Reemployment Program, to carry out the Reemoloyracnt Program, and to
act as liaison between the Administrator and the Public in interperting
HRA policies regarding Roamployraent Agreements with industries and
trades (iRA Release #91). ■•• '
The President 's Reemr)loyment Drive v/as announced- on July 20, 1933
by General Johnson and the S^oecial Industrial Recovery Board to be
launched on July 27, 1933 (NRA Bulletin //S and #4).
1. THE ELIPLOYERS' PART'' '■
During the three days beginning July 27,, 1933, letter carriers del-
ivered at each place of business, v^'here throe or more persons vcre em-
ployed, a message from the President, accompanied by a copy of the form
for the PRA; a certificate of corai^liance form, and a return envelop
addres&ed to the district office of the Department of Commerce. Any such
employer failing to receive this material by August 29, 1933 could obtain
it from his local postmaster. On July 29, 1933 it was annoujicod that
employers of fewer than three persons could obtain PRA forms at their
local post offices (HRA Release #130).
Because the first distribution of PRA forms through the post offices
was limited to businesses employing more than three persons, employers
of less than three persons and even the local "oostmasters were of the
opinion that small emoloyefs were not e:r:ectod to cooperate in the Pre-
sident's Beemployraent Program. This. led to confusion and tdnded to delay
the signing of the Agreements as some postmasters at first refused to
furnish PRA forms to small em?^3loyers who applied for them.
(a) Earning And Securing The Blue Ea.gle
The Employers' part was to act at once and earn the NRA Blue Eagle
Insignia and display at his place of business by taking the following
steps:
9819
1. Sign the ?'3A
2. Shorten the hours of fc\ctory vorkerr. to ofi hours per. ■'.7ee]c,
and of Gil other envolnyess fo 40 hours per vvo.ek' (?.I?A PaiT^.graphs -'^^a to #4)
3. Haise wages. (PHA Parat^ra.hs #5 to vr?)
4. Refuse to errmloy Child Lahor (PHA. P^ra^ra-oh #1).
5. Cooperate with the President (PSA Pragraiahs -',^8 to #13).
6. Mail the signed Agreement to the District Office of the Depart-
ment ftf Commerce in the franlzed addresred envelope provided.
7. Put the Agreement into effect. '
8. Sign the Certificate of Compliance provided.
9. Deliver the signed Certificate of Compliance to the local
post office and receive tlic Blue 3ag:la, the official FFA. insignia
awarded .to employers cooperating \vith 1-IHA for dis-:)lay to the Public
in order that eliy could determine who v;ere rr were not cooperating.
(h) 3arnin~ And Sacu.rir.ft- The Blue ll9.?:,le in Sccc-otional Cases
(1) Whore a Code H?.d Seen Suhmit ted (Paragraph #13, PH/0 —
If a whole trade or industry r/as unahie to live up to the
PEA, the_ cnnloyer v;a,s instructed to get together at once, with
other employers in the trade or industry and, in a group, s'obmit
a code of fair competition to 1:.'RA. Since it took some tine for a
code to "be approved after its s-abmittal, such groups were permitted
to petition HEA to substitute wa^e and hour provisions of the sub-
mitted code for PHA wage and hour provisions. In the event i!HA
elected to approve such substitutions the em-ylnyer was allowed to
put the substituted provisions into effect and he v/as instructed
to add to his Certificate cf Comroliance the following clause;
"To the extent of iTRA consent as announced, we have complied with
the PRA by complying with the substituted provisions of the code
submitted by the ^Trade/ Indus try. " If a substitution to the
PEA was consented to by ITPJl, after the employer had put the PEA
into effect and obtained the Blue Eagle, he was allowed to operate
under the substitution without signing another Certificate of
Compliance.
(2) Where a Code Had Been Approved —
If a code of fair competition had boon approved by the Presi-
dent, which was applicable to the employers' business, he was not
required to sign the PEA to obtain the Blue Eagle, but he sliould
sign a Cer-^ificate of Compliance, adding to it the following state-
ment: "'i7e have complied with the operative provisions of the Code
for the Trade/ Industry,
9«T 9
, -8-
(3) Cases Of Inclivid.-a?l Ifeirdship —
(See Ch. II, Section 5-lT, ?Rra,^,r^.^Dl-i #14, 3:-:ceptions,- A-opendix G
Pai-a.-rapli #14, F2A; Cfeoter III "?I14 Policies - Exceptions To
Ixie PRA.".)
2. TIG agLOYSSS' PART
The employees' pr?_rt vas to do their "best on the job and to cooperate
T/ith HHA. and emyjloyers in peaceful adjustment of differences, and to
share with tne -unemployed the benefits of the program.
3. THE PimLIC'tS PART
The public's part - and especially the part of women (vYho control
the bulk of buying) was to stipport all those em';3loyers and employees
v/ho did their -larts to put Tsreadvi/inners back to vjork. An i!EA Consumers'
badge of cooper? tion was printed and a\7ardad to every consumer in the
U. S. T/ho cooperated in the President's Heemoloyment Drive and signed
the follovdng statement of cooperation: "I v/ill coo"oerato in reem^Tloy-
ment by srp-iorting and patronizing ciVfjloyers and workers who are members
of NRA.."
G. PRA. POLICY BOARD .
A P3A Policy Board was a-0;:ointcd on Au^-usfV, 1933 by the Admin-
istrator of liJA to (l) correlate the -lolicies pursued in General
Hammond's PRA Aduiinistr-^ tive and Mr. Horner's Educational Campaign,
(2) consider and re jort to the ITational Recover;'" Adininistrator upon
petitions for substitutions to the PRA., and (3)to issue all PRA. inter-
pretations (See "PRA. Polic;y Board" - PZA Policies, Chapter III.)
9319
CliAPTKl II
pnESID:::'T'S HUEMPLOYLCIM AGHllEiffiliT
I. AUTHOP.ITi
Section 4(n), Title I of the irstionnl Iud:\strir.l Recover''- Act
(Pablic - "/o. 57-73cl Coiii'^resc) stp.tes:
"The President is authorized to enter into r'£;ree;ientG ^Tith,
and to a-o n-ove voliintari"- r.t'^reei.-ie:its betreeza and anon..j;, persons
engaged in a trade or industry', Ir.hor organizations, and
trade or industrial organizations, associations or 'groups,
rela.tin.-v to any trade or inuuGtr^ if in his jud;;-ment such agree-
■.nent vrill aid in effectua.tin;; the T)olic7 of this title v/ith re?-
spect to transactions in or affecting interstate or foreign cora-
raerce, ajid -'ill 'oe consistent ^-ith the renuiror.e;its of clause (2)
of subsection (a) of section 7> for a code of fair conpetition. "
II. ORIGIiT ■ '
»
"On the night of JUI7 IQ, the Industrial Advisory Borird held
J a joint meeting ^.7ith the Labor and Consuner Boards, The subject
of discussion rras labor provisions of an emergency master ■blanliet
code.
Considerable discussion ensued as to the hours and vrages that
TTOuld be equitable under an energency master blanket codfe. After
severrl hours discussion in- the general neeting it '"'as decided
tha.t f sub-comnittee retire to an adjoining roon and consider the
matter ajid renort bac]' to the general co-xiittee. On this sub-
coiiraittee "ere a-roointed '.It, G-erard S'TOpe ajid i.ir. Alfred ?. Sloan,
Jr., of the Industrial Ac.visor;'- Board, ;'r. TTillirn G-reen "nd Dr.
Leo Tolnaja of the Lao or Bo am, and iirs. Charles C. Bunsey of the
Consujiers Board.
The sub-connittee reported bad: to the gen.errl comitt-ee
asse:ibled the follo'-'ing su,ggested provisio-i.s:
1. ?or the energenc"'' period no minors under 15 years of r.f^e.
2. Maxinuin 40 hours for stores, banlrs and all office ervAo-yees,
public utilities other than transportation (sone iiention t7E.s made
of railroad clerhs e."ce-ot those having agreenents) , salesnen, ex-,
cepting executives ajid traveling salesmen. Kininun 'jage - $15.00
.per —eel:. Distinction night be made according to the size ajid
loccJ.ity of the community. ^, • •
3. - ]ia.nai"a.cturing industries - 35 hours ^er ^'eel: in the 13 ^eck
perioo., \7ith the right to v;or?: a, maximu'-i of 40 hours in en;/ 4
reeks of that oeriod, and not more . tha.n 3 hours of any one day in
an;'' one r^eelc.
9819
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4, i'iniinum \ir.-ge for ujishillud. At first this '•'PS recoranended
as follows: 45 cents oy the Lal:or Cornr''ittee; the Industrial
Coimittee thought there should oe a distinction hetveen nen and
voEien - 40 cents for ;.ien and cc for wonen. This rras la.ter a^-reed
upon by the coifoined igrou^s as r ninimun of 40 cents for every
body 'without distinction as to se;:,
«
Considerable discussion eyisueo. as to certain phases of the
reconriendations of the sub-connittee, particularl-' (a) on the
economic necessity of some distinction in '."'ages r.s betvreen male
and fe.iale labor, (b) some mention as to the necessity of regional
differevices, and (c) certain discussion bearing on the need of
reasonable tine to rearrange -sc'iedules.
Pollouing these general discussions the provisions as outlined
above '-ere finally found to be acceptable to all of the Boards.
On the question as to v/hether or not the so-called 'blajihet
code' vith its attendant plan of cara-Dcdgu as it had been outlined
by General Johnson at the morning session shoiuLd be stvoerimposed,
some members both of the Industrial Advisory Board and the Laoor
Board ex-oressed doubts a.3 to i^hether this treatment '7as advisable.
KoT7ever, it was .the consensus of o-oinion that nhile our J3oard did
not indorse the plan (as it nas our binder stc\nding that the Genera.l
had not requested from the 'loard.s any definite recom lendation on
this particular feature), if the Hecovery Administration decided
to go c'lhead and put it into effect they i^ledged their full coopera-
tion in an effort to i.ialce it o, success."*
From the above and consultation ^lith various IIRA officials it
appears that General Johnson develo-ied most of the provisions of the
PRA. Collaborating ~ith General Johnson i.n this task vere Secretary of
Labor Perkins, Secretary of CoraTiiorGO .lo-ier. Attorney General Cummings
and possibly other me.mbers of the President's Ca.binet in a.ddition to
Messrs. Gerard S-7ope , Alfred P. Sloa^o., Jr., Uillia.m Green, Dr. Leo
¥olman, Hrs. Charles C. R"arase-', Donald Richberg, and Alvin Brorm.
In a, radio address of July 24, 1933, the President said, "This
31a.nket a.greement carries the unaiiimous ap'oroval of the three Boards
:7hich I have apoointed to advise in this. Boards representiii;; the great
leaders in Labor, in Inaustry, and in Socia.l Service."
III. ilAxURE
The President's Reemployment Agreement '.7as a voliin.tary agreement.
There nas no force used, unless public o-:)inion and patriotism might be
considered as such, to cojipel anyone to sign the' agreement. It rras not
La\7 and no one was subject to its provisions unless they ha,d signed.
Industrial Advisory Boa,rd minutes of a joint meeting of the In-
dustrial, Labor, and Consujner Advisor;"- Boards, and General Johnson,
July 10, 1953.
9C19
-li-
lt ras a personrl a4;ree;nen,t between the si.jner p:.uI tlie President to
shorten hours of ei.voloynent and raise va{;es, and hy so doin;^ to coooerate
in a nation-- -ide program to raise va^jes, create and spread employment
and thus increase ojid spread purchasin£; power. It has been generally ■.,
held by the courts to 'be enforceable by pji enployee as a third party ;. :•.
beneficiary.
IV. PUZPOSE
A. TO 3ROG-S 111.12 ^nnJiZ) TO ?ar."& lESirJZRS 0? TPlADES ium hdustpjizs
U1D2R CODES OP "-'AIR COIIPETITIOi;
At the outset it v'as apparent that the orocess required in approving
codes, authorized in Section 3 of the Act, "hich involved "oreiDaration,
submission and the holding of herrings 'vas not conducive to imnediate
action. At least si:c ^--eehs '-ere required to ptit a major code through
the mill. To avert a ne- collapse and crash in trades and industries,
it vas ira")erative that a shorter plan be evolved. A preliminary step
in the plrii for industriol self-government was necessary.
3. TO ELIJIIITaTE CHILI) LA30H
TTides-oread cut-throat coraToetition irith its resulting lo\7 prices
caused najiufacturers njid those engaged in the trades to cut their costs
to the lor'est -oossible minimum. One method of lowering costs nas the
use of child labor.
C. TO SPRE-AD PUIlC?jlSi:.'(> POTTER
By spreading enploynent, reducing 'rorking hours, raising the
general level of rrages. Increasing \men;oloynent, cutting vrages and
greatly increasing the T.'orking hours of those still -^orkinjg drastically
curta.iled purchasing poorer.
D. TO CFJZATE PUBLIC OPIl.'IOh'
Uith fen exceptions a Ian as broad as the I'Tational Industrial Re-
cover-/ Act, affecting long established practices, nationrdde in extent,
cajinot be adequately enforced Trithout an aroused and almost unanimous
public o-pinion.
E. TO RELIEVE UlIPAIR COIPETITIOi; 3ET!7EEi; PUlffiLY Ili'TRASTATE AI.El
. lUTERST-tiTE E1ITE3PRISE
Inasmuch as the orovisions of the Act limited enforcement of its
provisions to businesses engaged in or affecting interstate commerce,
the proble;?. of fitting rjui-ely intrastate business into the President's
Emergency Heenrploynent Program becaiie one of paraiiiouiit importajace. The
members of tra,des and/or industries engaged -ourel^'- in intrastate commerce
were free to do more or less as they pleased tinless state legislatures
amended state la;ws to conform to the Kationa.l Industrial Recovery Act.
9819
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F. TO D5TERI.iIKIE FRC3LE1.IS OF TRiLDES AIvTD/OH IITIDUSTRIES
Lij jstablishiri:,; r. f;enerp.l rule pjici ap-olj^'in.; ninimiin -'a-'^os and
raaxiiaiun hours to all trades and industries, the, Adininistration, throu^^'h
requests for e;:ceptions accompanied ay data to substantia.te f-^reat and
unavoida'cle hardshro, '7as r.lDle'to determine the s-oecific problems peculiar
to an individual trade or industr/.
^« TO DEVELOP A RIIKJ OH STAl.DAia l-'OLl LAZJQR C0::'Diri0IT5 III ALL TRADES .
AIiD IL"DUST11IES Ii; ALL LOCALiriES AT aEOUT THE SAI.IE THE
The code -,rocess required too nuch time to do this.
H. TO PlfflPifflE I'iElEJERS OF TRADES AlZ) F-DUSTEIES FOE CODES
The "orovisions of earl-'- codes r.ubnitted by tr.'ides and industries
for approval indico.ted that they nere not yet rea^dy to acceot the nore
or less drastic chan^jes required to fulfill the aims of the Preside:it's
Reenild'Tnent Agreement. A lars-e nu:aber of trades rnd indixstries did
not have as -'gII orgpnize". trade associations as hR.d been pre3u-o':)osed.
I. TO PEESUDE, IIDIIIECTLY. I1DU3TRIES :'0 SUEI.ilT CODES OF FAIR
COI;lFETITIOr[
Paragraph ITo. 11, PRii states: "To coo;oerate to the fullest e;:tent
in having a code of fair competition submitted \)j his industr?'' at the
earliest possible date and in any event before September 1, 1935."
Paragraph ITo. 1.3, PRA states: "This agreement shall cease.... if the
I^IRA so el.ects, upon subi'jission of a code to \'hich the undersigned is
subject and substitution of any of its provisions for pn;y of the terns
of this agreement." The '7age aJid hour provisions of the P?Ji Tiere nore
drastic thrji r.-a.s contemplated for the codes. Relief lay in the sub-
mission of codes, which enabled URi). to determine the problens peculiar
to a, parti cvJ.ar industry/ or trade.
J. TO EASE GOi.iPETITIVE IxGQ.UiELITIES EET-GElf CODIFIED ..dlD
IFTCOFIFIED IIDUSTRIES
Unless something Tjere done to persuade all trade and iiidustrips to
operate uiider certain minimum wages and maximum hours at ap'oroximately
the same time, those required to operate under the provisions of ap'orov-
ed codes would be ola.ccd at a conroetitive disadvantage, because the
ws.ge and hour provisions of the codes tended to increase their costs.
V. PR0VISI0:TS of the PP-ESIDEFT'S REELiPLOYliE'JT AGREEiEGlTT:
The iprovision of the agreement in full, as originally announced,
follows:
"During the period of the Preside-j.t ' s emergency reemployment drive,
that is to say, from August 1 to December 31, 1933, or to any earlier
date of approval of a Code of Fair Co'.ipetition to v'hich he is subject,
the undersigned hereby agrees with the President as follows:
(1) After August 31, 1933, not to emoloy any person under lb
i'ears of age, encemt that -oersous between 14 and IS nay 'b euolo^red
9819
-13-
(but not in mrnufacturin--^ or raechajiic. 1 industi-ies) for not to exceed
3 hours per day and those hours "oet'-etin 7 a.n. pnd 7 n.u. in such rork
as "-'ill not interfere with hours of dry school.
(2) Hot to '^ork rny acco-ontin ;, clerical, ■b'-nkiUiS, office, ser-
vice, or sales :eriii:)loyees (exce-ot outside' salesr.ien) in aii^r store, office,
department, estalilishnent , or public utility, or on anj'- automotive or
horse-dra'"'n -lassen^er, express, delivery, or freight service, or in
any other place or manner, for more than 40 houi's in finy 1 i-'eek and not
to reduce the hours of any store or service operation to "belov; 52 hours
in aiiy 1 ''eek, unless such hours uere le'-";s than 52 hours per rreek he-
fore July 1, IQ^jo, and in the latter case not to reduce such hours at
all,
(3) ITot to e-Toloy p.ny factor-',- or inechanicrl r-orker or artisan
nore then a inpxinuji r.'ee]i of 35 hours until Dece'i'ber 31, 1933, out uith
the rifj'ht to rork a nr^inu'i yeel- of 40 hours for .'^ny 6 vreeks ijithin this
period;' anc. not to eimloy any norker nore than 8 hours in £uiy day.
(4) The ]a.^::cinum hours fixed in the fore^oinj^ oarar^raohs (2) and
(3) shall not a^roly to enployees in estahlishments enroloyinc not nore
than t'-o persons in to^-nis of less than 2,500 po-julation v'hich to'Tiis are
not 'part of a larger trade area; nor to registered phar lacists or other
prof essionaJ. persons e:.Tploycd in their ■'orof ession; nor to enployees in a
laaiiajjerial or executive capacity, T.'ho noi: receive more than $35 per iTeek;
nor to en-Dloyees on ener';ency naintenance and repair '-ork'; nor to very
speciaJ. cfses '^here restricbions of hours of hi^jhly skilled workers on
continuous -orocasses v'ould 'unavoidphl"-' reduce production hut, in an3''
such special case, rt least time and one third shall he paid for hours
TTorked in excess of the rnaxinui. Po-oulation for the purooses of this
agree.ient shall he detemined oy reference to the 1930 ?edera,l census.
(5) Hot to pay any of the classes of enoloyees nentioned in para-
graph (2) less than $15 per ^eek in any city of over 500,000 pop-ijlation,
or in the irai.iediate trade area of such city; nor less than $14.50 per
r-eek in enir city of oetv/een 250,000 rnd 500,000 "oopulation, or in the
iimnediate tra.de area of such city; nor less than $14 per -neek in any
cit;- of oetrreen 250,000 sjid 500,000 loopulation, or in the innediate trade
area, of such city; sua in to^-^ns of less than 2,500 ;oo;oula,tion to increase
all Trages h^'-not less than. 20 percent, orovided that this shall not re-
quire raj;es in e::cess of $12 per 'ree;:.
(0) Hot to ;oay any en^^loyee of the classes mentioned in paragra/oh
(3) less than 40 cents per hour unless the hourly rate for the ssjne class
of "ork on Ju!.-;'- 15, 1929, vres less than 40 cents per hour, in uhick latter
case not to pay less than the hourly rate on July 15, 192^, and in no
evant less than 30 cents per hour. It is agreed that this paragraph'
estahlishes a guarahteed r]iniK''.im rate of pay rega.rdless of whether the
enroloyee is coia>ensated on the hasis of a tine rate or on a piece^-'ork
performance.
(7) Hot to reduce the co;.ipe'xi;.;ation for e-T-.-loynent now in excess of
the ninir.Tuin wages here'by ag;reed to (-.lot^-ithsta.'-.ding that the hours work-
ed such enoloynient raay oe here'by recl-.iced) and to increase the pay for
9819
-14-
such enrploynent "by an equitable rerdjxistnent of ell pay schedules.
(S) Hot to use any sul5terfu;^e to frustrate the s-oirit and intent
of this agreement rhich is, anong other things, to increr.se enr)loynent
by a universal covenant , to renove obstruction to conrierce, nnd to
shorten hours and to raise ^7a^•es■ ±ot the shorter y^eeh to a livin-:; hasis.
(9) ITot to increase the price of any herchandise sold after the
date hereof over the -orice on July 1, 1935, "oy riore than is made nec-
essary "by actual increases in -^roductioM, r'eplacenent , or invoice costs
of nerchai:idise , or hy ta::es or other costs resultin;^ fro:-! action ts-hen
pursuant to the Agricultural Adjustraent Act, since JuJy 1, 1933, ajid,
in setting such price increases, to give full "ei:;'ht to probable in-
creases in sales volume and to refrjln from taking profiteering advant-
age of the consuning public.
(10) To sup^oort and patronize establishments nhich o.lso have
signed this agreement Piad are listed as neubers of 1!. R. A.
(National Recovery Administra.tion) .
(11) To cooperate to the fullest e::tent in having r. Code of Pa,ir
Competition submitted by his industry at the earliest possible da.te,
and in pny event before September 1, 1933.
(12) lUiere, before June lo, 1933, the -undersigned had contracted
to purchase goods at a fixed price for delivery during the -oeriod of
this agreement, the undersigned rill make an a:o 5roi?ripte adjustment of
said fixed price to meet any increase in cost crused b^'- the seller
having signed this President's Reem-oloyment Agrcenent or havin ; become
bound ''oy an:/ Code of Pair Competition approved by the President.
(13) This p,greement shall cease UDOn approval "02^ the President of
a code to nhich the undersigned is subject; or, if the J.E.A. so elects,
upon submission of a code to rhich the ■'undersigned is subject ojid sub-
stitution of any of its -orovisions for any of the terms of this agree-
ment.
(14) It is agreed that pjiy person 'jho nishes to do his nart in
the President's reemployment drive by signing this a.gree -.ent, but rho
asserts that some particular provision hereof, because of -oeculiar cir-
cumstances, ijill create greo.t and unavoidr-ole hardshi;^, may obtain the
benefits hereof by signing this agreement and putting it into effect and
then, in a petition ap")roved by a, re-ore senta.tive trade association of
his industry-", or other representative organization designated by lI.Pu.A. ,
may apply for a sto^r of such provision pending a summary investigation
by il.P.A. , if he agress in such ap'olication ' to abide b]"- the decision of
such investigation. This agreement is entered into oursuajit to section
4(a) of the National Industrial Recovery Act a/nd subject to all the terms
and conditions required 'by sections 7(a) and 10(b) of that a.ct.
9819
-15-
Dated , 19.35.
(Si£;n here)
( npne )
(Ol'.'icial oocitio:a)
(i'li'M '■■nd cor'i5oration nrne)
(Industry or trade)
(iJunber of enploj-ees at, the date' •of signing)
(Street) . . . ' ' ' i ■
(To-.m or city) . (State) " *
VI. EXPLAi.'ATIOj'S AiiD IhTIlHPllETATIOh'S OF THE AGHEHIEliT
A. PARAGRAPH #1, -CHILD LABOR -,
(1) After Au^yjist 51, 1955, not to employ'pny person under 16 years
of af-;e, exce-)t thpt i^ersons "bet^Teen 14 and 16 may lie enoloyed (but not
in manufacturing or mechanical industries), for, not to exceed 5 hours ;oer
day and those hours bet-'een 7 a.m. nnd 7 p.m. in such vork as vdll not
interfere pith hours of dry school.'''*
3. PAPJ\.C-RAPH -^2. HOUES APPLICA3LS' TO ITOII-IIDUSTHIAL TJOPJCSES
Al.D STOHS or SZRVICE 0?Zr.^TIO'j'S
(2) ITot to nork any accoujitinc, clerical, banking, office, service,
or sales erroloyees (except outside salesiien) in ai:ij'' store,
office, departhient, establishneht, or public utility, or on
aiiy automotive or horse-dravm passen£;er, e:nress, delivery,
(*) In discussing belon the -orovisioiis of the i^L^reeiient , they are
first presented in their ori ;inal fom, followed by a, sumnary of
the provisions, explanations aJil interpretations in 'jhich' re-
ferences are- i.iade to pji elabore-te compilation of all a.vallable
interpretatioiis, explanations, instructions and rulin:"^s regard-
ing; the a.'jreeneht which nill be foiind in the a;opendix.
(**) OrnCIAL Z:3^L\L"ATI0i; - See "Paragra^jh-^rO- , PRA.," Appendix "G".
9819
-16u
or freight service, oi' in any other place or -lanner , for more than
• ' . 40 hours in an^^ 1 we^c .and .nqt .to reduce the hours of any store or
service ooerat'.on to helo',-/ 52 hours in a.nv 1 rreek, -onless such
■' ■ • hoars were less than 52 hours per week hefore Jul^;- 1, 1933^ and in
the latter case not to reduce such hours at all.
1. OFFICIAL EXPLAMTIOITS - See "Paragraph #2, PHA" , Ap-oendix "G"
2. EMPLOYliEi\IT I^JCLUDED BT PARAGRAPH #2 (NON-IEDUSTRIAL '?0:RKERS)
"Barbers, beauty parlor operators and employees, dish washers,
drivers, deliven'-men, elevator opera.tors, janitors, watchmen, porters,
restaurant workers, filling station oioerators . '.' .(Basic Interpretation
#12, General Johnson, HUA. Bulletin #4) Maintenance forces including
charwomen, window cleaners, etc. (Basic Inter-pretation #18, General
■Johnsonj 1>IRA Bulletin. #4) Shoe shine employees, pptatp inspectors in
the city or in warehouse, private dectives receiving not more than $35
per week employed by a private agenc^'-, caddies emplo^'-ed by golf clubs,
cemeter-"- workers, no n- agricultural emplo^'-ees of horse dealers.
3. EtlPLOYlVlENT iTOT INTEIH^ED TO BE CO'^/ERED BY V3A - See Appendix i'G" -
and "Professional Occupations" Appendix "G".
4. EXELIPTIONS FHOi: MAXII.Wl' HOUR PROVISIONS
(a) Paragraph #4. PRA. Section "D" . infra.
(b) Calendar Year-End Inventories
"Any employer subject to the PRA may emplo^^ any employee,
during two consecutive weeks after the date hereof (December 16,
1933), any number of hours necessary to com"olete such inventory,
provided each emplo^'-ee so employed is paid at least time and
one-half' for all hours worked in excess of the raaximura hours per
. day or week specified for such emplovee hy the PRA or approved
substitution." (National Compliance Board, December IS, 1933)
( c) Fiscal Year-End Inventories
By unanimous vote, the Board (National Compliance Board)
instructed the Compliance Division to grant to petitioners
whose fiscal year-ends occur between now (January 9, 1934) and
Ifer 1, 1934, exceptions allowing thera to work their employees
in accordance with the provisions of the blanlcet exceptions
from the PRA. (National Compliance Board, January 9, 1934)
5. HINIiviUn WAGES APPLICABLE TO PARAGRAPH #2, PRA EIZPLOYEES - See
"Paragraph #5, PRA", Section "E" infra.
5. STORE OR SERVICE OPERATIONS
"The hours of an^'- store or service operation may be reduced
below the minimum specified in Paragraph ,#2, PRA, if the reduction
is in accordance with a practice of seasonal reduction of hours
and does not result in reduction of the weekly pay of employees."
9819
-17-
(Basic Interpretation if8, General Johnson, l-IRA bulletin ,^4)
"The Aificreeinent imposes no linitation on the naximum hours
of o-oeration of a store or service." (Basic Interpretation #11,
General Joh.ison, NBA Ballet in =r4)
C . FA?AG?-i\PI-' 7^3. I jLXIL.Ui : HO^HS APPLICABLE TO IKDUSTinAL ¥QRI{ERS
(FACTOZf O'^ MEC'IAl'IGAL •JOHIiE.R OR ARTISAlv)
"(o) }Iot to er.iilo-" an-'' factory or nechanical '.TOrker or
artisan nore than a rjaxinurn week of o5 hoars mtil Decemher 31,
1933, tat with the right to v/ork a maximirn week of 40 hours for
any 6 peeks within this period; a:id not to eCToloy any v/or'cer more
than 8 hovo-s in any 1 da''."
1. OFPICIAL EXPLAi^TATIOl'S - See "Paragraph #3, P?A" , Apoendix "G" .
2. LIODIFICATIO:^ OF PALIA.GRAPK 3
Por the niOT'oose of encoura'^ing eni>lo/ers to si.^n.the President on
Octoher 3, 1933 nodif ied paragraph #3 of the Asreenent to read as
follor's;
"Fot to emplo"' any f actor;;' or mechanical worker or artisan
more than a maxiraun week of 35 hours until Deceraher 51, 1933; and
not to enoloy any v/orker more than 8 hours in any 1 da*''." (Execu-
tive Order #6304)
3. EEEECT 0? HODIPICATIOII OP PARAGPAPH 3 OiT SIGITEHS OP PEA
"Signators of the PPA prior to Octoher 1, 1933, oa.^ht to be
allowed to employ emplo^'-ees under paragraph 3 of the PRA. (permitt-
ing 40 hours work per week v^here necessary) a total of six weeks
from the dates of their signatures of the :°rA to the effective
dates of codes for their industries, and that those who signed
sibseouent to October 1, 1933, should be restricted to the 35
hour week." (National Cor.Toliance Board, iia'^ 17, 1934)
4. ElPLOYiSITS HOT lUTSi'DED TO BE C0''/EP3D BY PRA - See Appendix "G"
and "Professional Occapations" , Apoendix "G".
5. EXSiP'TIOHS PROM MAXIIvfOl.: HOUR PROVISOi^TS
(a) Paragra.-oh #4, PRA, - See "D" infra.
(b) Calendar Year-End Inventories - See "Paragraph #2, PRA",
"B" supra.
(c) Fiscal Year-End Inventories - See "Para^raDh #2, PRA",
"B" supra.
6. EXTENSIOITS OF THE PRA - See Executive Orders #6515, December 19,
1933 and #5578, April 14, 1934
9819
-18-
7. MlKIMTu 'JAGES APPLICjffiLE TO PAaAGRAPH tJ=3 ElIPLOYESS -.See "Paragraph
#5, PPji", "?" infra.
D. PARA-GRAPH #4, EIv^LOYEilS EXELPTED FROLi IvIAXII/njI.i HOUR P::i0^nsiOHS
"(4) The maximum hoijirs fixed in the foregoing paragraphs
(2) and (3) shall not appl^^ to emoloyees in estahlishmsnts enploy-
ing not more than two persons in towns of less than 2,500 po-oula-
tion which towns are not part of a larger trade area; nor to regis-
tered pharmacists or other professional persons employed in their
. profession; nor to emplo^'-ees in a managerial or executive capacity,
who now receive more than $35 per week; nor to eniiDloyees on emerg-
ency'' maintenance and repair work; nor to ver^^;- special cases where
restrictions of ho"Jirs of highly skilled workers on continaous pro-
cesses would unavoidably reduce production hut, in any such special
case, at least time and one third shall he paid for hours worked in
excess of the maximum. Po-oiilation for the purposes of this agree-
ment shall he determined by reference to the 1930 Federal census."
1. OFEIGIAL EXPLAIIATIOr - See "Paragraph ,^4, PRA" , Appendix "G".
2. EtiPLDYliEWT ITOT INTEtlDED TO BE CQi/ERED BY PRA. - See Appendix "G"
and "Professional Occupations", j^pendix "G".
3. Ei'.ISRGEECY MAI1TTEJ!A1''TGE AITD REPAIR lOmi -
"Hours worked in excess of the maximum by employees on
emergency maintenance or repair vrark shall he paid at the rate of
time and one third." (Basic Interpretation #7, General Johnson,
I\[RA Bulletin #4)
4. EXECUTIVES AWD I.IAMGERS
"In the PRA it is provided that the maximum hours shall not
apply 'to er.Tplo3^ees in a managerial or executive capacity who no¥\r
receive more than $35.00 per week. ' There are provisions in var-
ious codes excepting from the limitation upon hours of those des-
cribed as 'managers' or 'executives' and corai-)laint has been re-
ceived that in many instances eranlovee.s are classified as 'managers'
or 'executives' either for the purpose, or with the result, of ex-
empting them from limitations upon hours. It has not been the in-
tention of the administration in approving such exceptions to pro-
vide for the exemption of any persons other than those who exercise
real managerial or executive authority, which persons are invested
with the responsibilities entirely different from those of the wage
earner and. come within the class of the higher salaried employees.
It will be presumed that no eraplo-"-ee receiving less than $35.00 per
week will be classified as a 'manager' or 'executive' so as to be
exempt from an^'- provision of any code regulating the maximum hours
of work pernitted in a trade of industry." (General Johnson, October
13, 1933, release #1178)
5. EXEL'lPTIONS PROii MAXniUi: HOUR PR0VISI017S
(a) Calendar Year-End Inventories - See "Paragraph #2, PRA.",
"B" supra.
9819
-19-
(b) Fiscal Year-End Inventories - See "Paragrapli #2, PEA",
"E" supra.
(c) I.ianagers or Sxecutives Receivin.p; More tlip.n $S5 Per Week
"The maxim-ujn ho.irs fixed in paragraphs #2 and #3, PRA do not
appl",'' to an e:Tnlo^''ee receivin.^ more than $35 per \7eek and who is
acting,- primarily, altho-a-;h not wholl^^, in a manaf-Terial or executive
capacity." (Basic Interpretation #15, General Johnson, MA Bulletin
( d) Professional Persons
"The follO¥/ii\i; are included, among professional persons within
the meaning of paragraph #4, PHA: Newspaper reporters, editorial
writers, rewrite men and other raeT'iters of editorial staffs, internes,
n-irses, hospital technicians, research technicians." (Basic Inter-
pretation #19, General Johnson, HUA Bulletin ^i=4)
(e) Towns Of Less Than 2500 Po-pa-lstion.
Certain emplovers in towns of less than 2500 popiilation — See Execx^tive
Order #5354, #6710 and Administrative Order #X-"72.
(f). Owner-O'oerated Stores - See Appendix "C-"
E. PARAGPAPH #5. Mllllirjl' 7AG3S APPLICABLE TO NOIT-IIIDUSTRTAL ¥OIg;EHS
(PA?.iiG2APH .#2. e:.ploy-h:s)
"(5) Kot to pav any nf the classes of employees mentioned in
paragraoh (2) less than $15 per week in any city or- over 500,000
popiilation, or in the inmediate trade area of such city; nor less
than $14.50 per week in any city of "between 250,000 and 500,000
population, or in the immediate trade area of such city; nor less
than $14 per week in sirr city of "between 2,500 and. 250,000 popula-
tion, or in the inaen.iate trade area, of such city; and in towns of
less than 2,500 population to increase all waf-^es ty not less than
20 percent, provided that this shall not reouire v/ages in excess of
$12 per v;eek. "
1. OFFICIAL EXPLA-MTIOrS - See "Paragraph #5, PPA" , Apoendix "G".
2. El'I?L0YIv3"i?TS TO WHICH PASAGSAPH 7f5, PPA MINILIUl.i WAGE PROVISIONS
A?E APPLICABLE - See "Paragraph #2", "B" supra.
3. El.PLOYIZErTTS rOT INTEriDED TO BE COVERED BY PRA - See Appendix "G",
and "Professional Occimations" , Appendix "G".
4. EXCEPTIONS TO AlH) EXELPTIONS FROI! PRA i.;il-:i:."U"i- WAGE PROVISONS - See
"Paragraph #4, PRA - 'Emergency Liaintenance and Repair Work' and
'Sxenrotions from Maxirju^ Hoar Provisions', "D" supra; also see
'Apprentices', Part-time employees ', Suostit .itions, and General
Expla.nations etc., Append.ix "G".
9819
-20-
5. ILi[EDIA::'E THADE A-^A -
"Inmediate Trade Area is- the area in 'Thich there is direct
retail competition. In case of question, the decision shall be
made "by the local chamher of cominerce or similar organization sub-
ject to review hy the State Recovery Board." (Basic Interpretation
#13, General Johnson, W3A Bulletin #4)
F. PARAGRAPH #6, MIIIkTJI.I WAG-ES APPLICABLE TO II^USTRIAL WORI^EHS
(PARAGRAPH #5. EMPLOYEES)
"(6) iJot to pa-,'' an}'' employee of the classes mentioned in
paragraph (3) less than 40 cents ler hour unless the hourly rate for
the same class of work on July 15, 1929, was less than 40 cents per
hourv in which latter case not to pay less than the hourly rate on
July 15, 1929, and in no event less than 30 cents per hour. It is
agreed that this paragraph establishes a guaranteed minimum rate of
pay regardless of whether the employee is coraoensated on the basis
of a time rate or on a piecework performance."
1. OPEICIAL EXPLAIJATIOr - See "Paragraph #5, PRA" , Apoendix "G".
2. Et'tPLOYIJElTTS TO 'IHICH PARAGRAPH #6, PRA inHILIUi; WAGE PROVISIONS ARE
APPLICABLE - See ''Paragraph #3", "B" suDra.
3. EirPLOYivEEIITS NOT IKrrEn)ED TO BE COVERED BY PRA - See Appendix "G"
and "Professional Occupations", Anpendix "G".
4. EXCEPTIONS TO Aim EXEIiPTIONS FROII PRA MINIliUi; WAGE PROVISIONS .- See
"Paragraph #4, PRA - 'Energenc-^ Maintenance end Repair work' and
'Exemptions from Maxira\am Hour provisions', "D" sur)ra, also see
'Apprentices', 'Part-time em-oloyees', Substitutions and General
Explanations etc. Appendix "G".
5. HOURLY RATE - See "Earnings", Appendix "G".
G. PARAGRAPH #7. COi.PSNSATION POR EI/IPL0YMEI7T
"(7) Not to reduce the compensation for employment now in
excess of the minimum wages hereby agreed to (notwithstanding that
the hours v/orked in s ich employment may be herebv reduced) and to
increase the pa^'' for such employment by. an eqm table readjustment
of all pay schedules." ' .
1. OFFICIAL EXPLANATION AND BASIC INTERPRETATIONS - See "Paragraph #7,
PRA", Appendix "G".
2. PRESERVATION OF WAGE DIFFERENTIALS
"Qaestion: We have been asked whether Paragraph #7, PRA re-
quires an increase in wages a-11 along the line above the minimum,
entirely apart from shortening of hours. In other words, the ques-
tion is asked whether Paragraph #7, PRA requires a oreservatiori, in
some degree at least, of wage differentials all the v;av up." (F. S.
Pollalc, October 18, 1933) "Anrwer: Implication is that higher
wages should be adjusted by collective bargaining if possible to be
in line with increase in minimiuns." (D. R. Richberg, October 18, 1933)
9819
3 . PH03LEI,iS
laajiy problems aros'e as a resalt of Paragraph- 7?, PIlA in spite of
Basic Interpretations =,rl, #20 and #21, inco:->3orated in 'JRA Bulletin #4.
Soine idea cf the resxltin",- confusion was indicated in the follov;ing excerpt
fron the r.in\;tes of a neetln.-;^ of the Industrial Advisor--'- Board held
Au^ast 5', 19oo:
"The blanl-et co<"le, as finallv presented, contndned several
additions' which. had jiever heen sutiralttcr; to the Advisory Boards
and that so'-ie of the present coni'usion is due to the insertion of
these parE.3raphs. This v/as especiall-/ true as to Paragra-jh #7,
and it xja.s stated that no menber of the Bo.r-'.rd knev an-'-thin.^ about
this para.:e;r?ph. "
, Further indication's of. -l-'he confusion resultin{r froin Para.-;raoh #7,
PZA vrill be found in the 131A LB;";?! DivisioriL (^'ra.niclin S. Pdllal:) memoran-
dum dated Au"-;ast 7, 1033, incorporated in the Appendi::.
H. ' PA'U'"-"lAP^f ' #3 . ' A'':TISTr- TE^-'TIGE '' ' •
""Jot to use Bxvr subterfu.;-,:e to frustrate the spirit and intent-
of .this a5:reenent- which .is, arnon.; other thin",'?, to increase^ emplo-"/--
inent b"'- a '•nni.Yersal cove'nant, to renove obstructions to connerce,
and to shorten hoiirs anr'' to raise wages for the shorter weelc to a.
living /oasis. "
1. OFITICTAIi'EICPLAi-ATIO:" - See "Para-'^raph #G , PRA" , ApDe-ndi:: "P". •
I. PAPoiG^AP"! Tr9, AirriP'^.O^ITSErTC- ■' ■
"(3) ..Hot to increase the brice of any "lerchandise sold aJter
the. date hereof . over the irice on Julv 1, 19L3, by rnore than is made
necessary by act .lal increases i'n orod-act ion, replacement, or in-
voice,costs ox .nerchaxi.dis.e , or b"'- taxes or other costs resulting
fron a.ctia:i tal-en p'orsnant to 'the .^;'T;riCult-j.rr'l Adjust ^uent Act,
since J"al:' 1,, 1955, and, in setti'a.;? sacn -price i'ncreases, to give
f-ull weifrht to probable increases in sales volu:.ie and to refrain
■•• . ■ -f roa talciuT orof iteerin-- advnnta^--;e of '/ne co:as"'aj:un;'r -ouolic."
(9819)
-22-
1. OFFICIAL EXPLANATIONS - Sec "Paragra-Dh *j, At)T)endix "G. "
2. PRICES
"where the July 1, 1933, price; was a distress "Drice,
the employer signing the agreement may take his cost
price on that date as the base for such increase in
selling "Drice as is -Dermitted hy Paragra-oh #9."
(Basic Interoretation #5, General Johnson, NRA
Bulletin #4)
J. PARA.GRAPH #10. COOPERATION
"(lO) To su-DT)ort and patronize establishments which also
have signed this agreement and are listed as members of N.R.A.
(National Recovery Administration) . "
1. OFFICIAL EXPLANATION - See "Paragraph #10, PRA, " ApT)endix "G."
K. PARAGRAPH #11. CODES
"(ll) To cooperate to the fullest extent in having a code
•f fair competition submitted by his industry at the earliest
possible date, and in any event before September 1, 1933."
1. OFFICIAL EXPLANATION - See Paragraph #11, PRA," Appendix "G. "
L. PARAGRAPH #12. APPROPRIATE ADJUSTMENTS
"(12) Where, before June 16, 1933, the undersigned had con-
tracted to purchase goods at a fixed price for delivery during
the period of this agreement, the undersigned will make an
appropriate adjustment of said fixed price to meet any in-
crease in cost caused by the seller having signed this
President's Reemployment Agreement or having become bound
by any code of fair competition approved by the President."
1. OFFICIAL EXPLANATION - See "Paragraph ='il2, PRA," Appendix "G. "
2. RELIEF TO GOVERNIvIENT CONTRACTORS
Relief to government contractors, in the event costs of
performance of such contracts were increased as a result of
compliance with the PRA and codes of fair competition, was
provided by the 73rd Congress and the President. See "Public
Act #3G9, Appendix "H. "
M. PARAGRAPH #13. TERMINATION OF AND SUBSTITUTIONS TO THE PRA
"(13) This agreement shall cease upon approval by the
President of a code to which the londersigned is subject;
of, if the N.R.A. so elects, upon submission of a code to
which the undersigned is subject and substitution of any
of its provisions for any of the terms of this agreement."
9819
-23-
1. OFFICIAL EXPLANATION - See "Paragraijh #13, PRA, " A^TDendix "0."
2. EFFECT OF APPHOVAL OF A CODE UPON COKTIITOATION OF Tlffi PRA
(a) "Members of p trade cr industry c-neratinp \mder the PRA,
or nrfOTOved. substituted -Drcvisions, at the time of
a-Dt)roval of a pcTraanent code by the President may con-
tinue o-oei'ating unde:r the PRA or aToroved substitution
until the effective date of the code, or may begin oper-
ating under the .vagc 'and hour -nrovisions- of the code at
any time bet^i^een the date of apprcval by, the President
and the effective date." (General Jojinson, October 25,
1933)
(b) "It is the opinion of the Legal Division, NRA, that the
PRA does not cease until the signatory to the PRA is
bound by the provisions of a code which has become
effective." (Stanleys. Surrey, February 7, 1934)
(c) "A non-signatory of the PRA ought to sign* the PRA before
he may elect as to whether or not he will abide by the
FRA or by the code during the period between a-onroval
and effective dfte of the code for his industry."
(National Compliance Board, February 17, 1034)
vd) "In cases where a code exempts a person. from its pro-
visions with respect. to certain of his operations,
then there is no code to which he is subject with
.. . respect to those operations and the signatory of PRA
should be required to comply with such provisions of
the PRA as relate to. those operations." (National
• Compliance Board, February 15, 1934). Also see
Chapter III, Section VIII, "PRA Policies - Substitutions
To the PRA,"
N. PARAGRAPH ;J^14. EXCEPTIONS
"(14) It is agreed that any person who wishes to do his part
in the President's reemployment drive by signing this agreement,
but who asserts tliat some particular provision hereof, because
of peculiar circiimstances, will create great and imavoidable
hardship, may obtain the benefits hereof by signing this agree-
ment and putting it into effect and then, in a petition ap-
proved by a representative trade assooiation of his industry,
or ether representative organization designated by N.R.A., may
apply for a stay of such provision pending a summary investi-
gation by N.R.A. , if he agrees in such application to abide
by the decision of such investigation. This Agrecip'ent is
entered into pursuant to Section 4(a) of . the National Industrial
Recovery Act and subject to all the teras and conditions re-
quired by Sections 7(a) and 10(b) of tha.t Act.
9819
-24-
I. OFFICIAL EXPLANATIONS AND BASIC INTE^HETATIONS — See
"ParagraDh i^l4, PRA.," Apnenflix "G" also see Cha-oter III,
Section X, "PRA Policies - Exceptions To The PRA."
VII DURATION OF TTffi AGREE! SNT. ■
A. ORIGII-TAL AGREEi.XJT (August 1, .1933 — December 31, 1933)
Signatories to the President's Reemployment Aj_'^reeraent agreed
with the President to comply witn its provisions (l) during
the ■nerioc' of the President's Emergency Reem-nloyment Drive,
August 1, 1933 to ppcember 31, 1933 (opening paragraph of the
, Agreement) er (2) until approval hy the President of a code of
fair competition to which the signatory was subject (paragraph
13, PRA) or (3) if the KRA so elects, u^on submission of a
code to which the signatory was subject and substitution of
any of its provisions for any of the terms of the Agreement
(paragraph 13, PRA),
The Legal Division, ITRA, on February 7, 1934, interoreted the
phrase "ap-oroval by the. President of a code to which tlie under-
signed is subject" to mean tliat the -orovisions of the code must
be binding unon the signatory to the PRA before he is released
from the obligations of the Agreement. Therefore, the PRA
docs "not cease in such cases until, the signatory to the
PRA is bound by the provisions of a code which has become
effective. (See Paragraph vl3. Termination of and
Substitutions To The PRA," p. 3l).
As mentioned the Presicient's Agreement was a tempora^ry measure
to tide over the time until all employers and employees could
coQ-nera-te under codes of fair comrietitinn. A signatory to
the PRA agreed to cooperate to,, the fullest extent in having
a code submitted bj'' his industry at the earliest -Dossible date,
and in any event before September 1, 1933 (naragraTDh 11, PRA).
3y limiting the original Agreement to December 31, 1933, the
Administration evidently honed to have all employers operating'
under codes by that date. This proved to be impossible so the
President offered to. extend the Agreement.
■ B. FIRST ,EXTENSION (January 1, 1934 to April 30, 1934)
On December 19, 1933, the President offered to extend the
Agreement as follows, , .
' "I hereby offer to enter into the President's Reemoloy-
. ' ' raeht Agreement with every employer, insofar as he is
not covered by an approved ,code of fair, competition,
for a further period of 4 months from January 1, 1934,
to April 30, 1934, or to any earlier date of approval
of a code of f."ir comnetition to which he is subject."
(Executive Order -.-eSlS)
9819
--35-
Executive Order -0515 stiecified further that,
"all- substitutions- and .exeijmtion& aTtinrqved, and all
exce-ntions- granted to -oarticular Qrtrolq.yers, before
January 1,^ 1934, vwill a-oT^ly to the President's Reeinploy-
inent Agreement as, so extended" ■
and,
"Emplcyers. who shall have already signed' the' President's
.Heemnloyinent Agxeeraent /before January 1, 1934, may
acceTDt this offer of extension by disislay of the Blue
Eagle on or after January 1, 1934/ .Enroloyefs who shall
not liave signed the President's Heenroloymont- Agreement
■bef o.i;e- .Ja,nunry 1,. 1934, may accept this' offer of ex-
. . tens,ic}nb.y. signing the President's Reemployment Agreement."
SECOIID Alip .EKIAL -EXTEFSIOU (liay 1, 1935 to the -date the
signatpry became subject to an :apiproyed code pf fair com-
■oetition} ■- ■ • . .
On April 14, 1934, the President again offered to extend
the PEA -as ..follows:
"I hereby offer to enter into the President's Reemployment
Agreement with tAe head of, every, business establishment
as tp any part of his business not subject- .to an approved
. ; -code of foir competition,. /for a furthei* period beginning
May 1, 1934,. -and ending: v)>he.n that part of his business
becomes -siibject .to an approved code- of fair competition."
(Executive Order .#6678-A) •
: .Executive Order- -^tgeVS-A snecified further that,;
■ ■ ■ , ^ ■ ■ . ■ ■
"all substitutions and, eptentptions anprbved, and all
exceptions granted to particular empl-oyers, before
?iay 1, 19-34, will, apply to the President's Reemploy-
- ragnt Agreement as s-Q extended"
and, i , ,
. "Employers, .who; slial-l have ; signed, the President's Re-
. employment, Agreeme-nt.: before May 1, 1934, may accept
this: offer, of extension- by, diST^lay, by them,- sliall be
deemed an acceptance of this offer. Employers who
shall: not have signed the President 's Reempldyment
Agreement before May 1, 1934, may accept -this offer
of extension by signing. the iPresident 's Reemployment
Agreement. " • ■ •
9819
-26"
D. PHESENT STATUS _ .
"The contract (PRA) formulated by the offer extended
by Executive Order No. 6673-A and accepted by dis-
play of the Blue Eagle after May 1, 1934, must be
construed to terminate at the latest on June 16,
1935. This contract was entered into by virtue of a
statute which by its terms wa.s to expire no later
than Jujie 16, 1935. We. cannot consider that employers
intended to bind themselves not only for the specified
period of the Act, but for any subsequent term which
Congress m.ay specify by amendment of the Act, Executive
Order Ko. 7076 dated June 15, 1935, continues in effect
all existing Executive Orders so far as consistent
with the recent amendments to the K.I.B.A. I do not
think this can be construed to extend the P.R.A. since
if we consider that the original offer of an agreement
carried the implied terra that the agreement was to
'■ extend' only until June 16, 1935,; the extension of this
Executive Order has no effect. Therefore, I am of the
opinion that the P.R.A, could not in any event have been
deemed to be binding upon any employer beyond June 16, 1935,
in the absence of any acquiescence, on his part and on the
President to an extension of the agreement.
' 'However, I would go further. It seems to me that the
P. P. A. must be deemed to have- been abrogated by the
President en May 27, 1935. On that date following
the Schechter decision, the President announced to
the public, through Donald P.. Richberg, that the en-
forcement of all existing codes would be suspended,
and this announcement carried the clear inference that
no further codes would be approved; at least until
furliher legislation is enacted. It wa.s clearly the
intention of the P.R.A. (at least of its latest ex-
tension) that it should be binding upon that small
minority of employers who were not subject to approved
codes. They would be placed at no competitive disad-
vantage since most other employers were subject to
codes. The agreement in terms was to terminate upon
the approval of a code. Wlien on May 27, all codes
were in effect abrogated and the possibility of the
approval of further codes was eliminated, I think we
must deem the P.R.A. to have been suspended.
Whether the Schechter decision invalidated the P.R.A.
retroactively is another question and one which will
require careful study. The same problem would be
involved if we wish to propose another P.R.A, at the
present time," (G-eorge Bronz, Legal Division,
June 21, 1935)
9819
C? APT El"; III
F-'^^'SiDr.-T "-.EiiTLor-rT .;•:-"!_: ^:"T policies
I. i.-ni;j. PFJi FOLiciiS
Initial P?Jl tc liciet r^re cpvelop^d Oj/-- the ■A^''.ni"".istr?.tor in
coll-^.toratioG '.-dt/x tl;e G^pci'l I:ic'-astrial Recover]/- Board, ap loirited o^ '
the President (Errec.itive Order #6173, Jiine 15, 1933) I'rhich: aroroved IIRA
Eulletiiis I'Tr.'bers 1, 2, Z, 5 -nd o, rnd t'u- thrfif Advisory Bo"rds
(Industrial Advi soxr Bo",rd, a'.:),)Ointed "by the Sec. etary of Coimerce;
Lal'Or Advisor" 3o-.rd, appointed oy the Secreta.ry of La)or; Consuners Advisory
Board, appointed "by the Acij-iinistrator) ,
Educstionnl policies wer^ developed ?nd promul ;atp.d by the 1>TR A Public
Helations Division -under the supervision of ''.r, Ch?j.-les S. Horner. Policies
concernin:^ tha'Presidei-it ' s Reenoloy;ien-t -Program v/ere deve].cppd and pro^^ul-
gated b;)- Ge.-.eral Thonas S, Ha.-.inond, Expcutive Bir-^ctor of the President's
Emergencj'- Rf enoloyp.eut PrO;:;ra::i*-. . Petitions for permission to , substitute
provisions of sxibnitted codes for -provisions of the PRA, authorized in
Parrjraph #13, PRA '.Tere in the bef-inning h-^ndled by Deputy Administrators
appointed to consider p-^oposed co6.es sub'^itted to -the AdTiinistrration for
approval. This ■orocedu:'e cused general confusion and r^siilted in the
est^.blishnent of the PRA Policy Soarci. ■,..,'
II. PfJ. POLICY EO^iFD (Au£7J.st V, 195:: to October 26, 1935)
A. ORIGIN MV Ilii-ioSJi' . .
On Aa"ust'7, 1933, the Administrator a-ooointed the PRA Policy Board
to (l) correlate the policies pursued in General HarTriond's PRA Administration
and I'.T, ricrner's Educational Drive (2) consider and report to the national
Recovery Adm.inistrator upon petitions for substiitutions of code provisions
for PRA provisions (Paragraph #13, PIlA) and (5) to issae all interoretations
of the PRA. (Office Order lo. 13, dated A^ugust V, l'."33).
B. 0~-GA.^IZATIC:-:
The personn.?! of the originral PRA Policy 3o--rd co'isisted of (1)
Ch^irmaji piv Adninistrator' s Representative, Robert -J. Stevonn, (£) a
representative of Labor assigned from the Labor Advisory Boa""o ,' W. E.
Leiserson, (3) a representative of Industry assigned by the Industrial
Advisory' Board, Edfrard R, Stettinus, Jr., (4) Secretary ?nd Liaison Officer
"ith the Industrial Liediation Board, Robert K. Straus, and (5) a l°gal
A^.visor to the Chpdrmaji selected from the IIRA Legal Divisirn, I-Cilbourne
Jojr.ston,
C. T£Ri.:ihATIC'T
./. ■ -
The PRA Polio;- Bcro co'itinu-'d to e-ecut'^ the f-unctions mentioned
above until the establishment of the .latlon-^l .Co!.i -jlia-nce 3o'r.d on October
25, 1933, 3,t i-iiich tine the PRA Policy Board iTas a.bolished and all of its
duties and .functions necescary to be oerforwed ■■■'■7e-re tr'"':isfprred to the
National Compliance Board, (O fice Order #40, October "'6, 1933),
9319
-28-
III. BLUiL EAC-L£ DIVISIOxT ilHA (Aumst 1^, 1933 to Cctooer 23, 19S3)
A, QUI an: AI'3 O'^GAillZAxICJ
According to Office Gi-cler Tf2, dnted Aa-us r 1^, 1S33, signed "by
T. S. Ha:ir-,ond, Execu.tive Director, President's Repinoloyiaent PrograiA, the
design-tion of tli^^.t office (President's He^mploynent Progran) ras to "be
"Blue Ea-ile Division, f "lA. " The o-'i-in-;.! 'Slae E-^/rle Division consisted
of 8 sections: (1) Executive Section, (2) Information Section, (3)
Recovery Boards Section, (4) Comolpiiits Section, (5) Interpretation
Section, (6) E::ceotions Section, (7) Trade Atsoci-.tion Section, (o)
Insignia Sec+ion - Although the Insignia Section is included in the Blue
E? le Division set uo as outlined in a Bl.'.e Eagle Division memorandum
d-'ted Au'-ist 11,'1S53, there appears to te some question regarding the
Insignia Section coming under the Blue Eagle Division, as the Section is
omitted from all subsequent Blue Eagle Division memoranda, (See "Blue
Eagle Division, 131 A, " Appendix "B")
B. SECTIG1'?S H.UTDLIIv'g PIA PLLICIES
The sections of the Blue Eagle Divisions handling PRA policies were
(l) E::ecutive Section, which was charged ' ith cl.= arin" all administrative
Hcatters r^garCing decisions of policy either within th° Division or from
the PRA Policy Board (B.E.D.T. #1); (2) Interpretation Section which
disseminated inf or'-aation regarding the obtaining of the Blue Eagle and
elaborated on "basic interpretcations incorpor'nted- in NRA Bulletins #4 and
those jaade "by the PRA Policy Board (B.E.D.i.:. #2 and 1^); and (3)
E^rceations Section, '"^liich was designated to receive' n.ll petitions for
e:-ception, ."uthorized ..nder Paragraph #14, PRA. (B.E.D.i:. #2 -md #in),
.C. REGRGAillZATIO"^ ■■ '
Office Order #35, dated Sept-^mber Ic, 1 33, authorized. a r-eorganization
and colsolidation of the Blue Eagle Division "by Lr. Franic Healy appointed
to tahe ove:; the duties heretofore performed by General Hannoitd. According
to B.E.D.U. #13, Septeyiber 30, 1933, all sections of t"he Division \rere
abolisiied azid W. P. Parnsworth, Asbist:^nt Counsel, Blue Ea.gle Division was
assigned the responsibility fdr interpreting and explaining the PRA and
substitutions allowed t"nere-ander. Although 'it \7as not stated, his resoon-
sibility was subject to final approval of the PRA Polic^r Board, • Also see
Appendix "C". • -
D, ' . TERIvIIKATIOII
With the establishnent of the iIRA Con:)liance Division on October 26,
1935, the Blue Ea"le Division, IJRA, becane the Blue Eaig'le Branch of the
Gonpliance Division, (Office Order #40).
IV, C0MPLIA:":CE DIVISIOI' ir.l (October 26, 1933 to August 29, 1935)
A, Or.IGIK ii'IDJjLUE EAGLE BRAIICK
On October 25, 1933 there was established in liRA, a ComiTliance Division,
headed by a. ilatioaal Comiliaiice Director. The Bl .e Eagle Division, NRA,
became t"ne Blue Ea^'le Branca of the Compliance Division and continued in
charge of Lr, Pran': Healy, Chief, (Oifice Order fo, 4n)
-29-
Tli- 51.i.e 'Ea":le Zri..iCh, Conoli- .ce Oivision '"as r'^sponsi'blp for all
n-'.tt'TS co"tce:-nin?: the "PHA, incl '.ciu- ir.tpr'prct -tions, e::ce-oticis 'icl
permission to oper^tp under Union Contr'\cts, complaints of non-ccruli 'nee
and correspondpncp ■Itli St-^te, 'District ?nd Local Bof^rds, (Gf'^lce i'enoran-
dum dated Octolier 23, 19L-.3). Aloo se^ "Comoliance Division, ITIA",
Appendi?: "D".
3, LAIC" AD ■:j?:'i:"ist::aii''E :nA 'c^s
On rnvp-'oer 24, 19l:'.5, the ;31ue Ea-^le Branch, Cop,r;liancp Division, was
a.nal™a^«ted ivaC. consolida.ted in the Lahor, Tracie Practice and. Administrative
Brajiches o* the Comoli^uce Division (0. 0, #45 and C.D.G.r. #1). The Labor
Branch h-ndled p'^titions for '-::ceptions frcra the PEA (a.uthorized in
Paragraph 7rl4, FHA.) and. the Administrative Branch handled corres-oondence and
information (Interprptations) rejardin<^ the PHA (C.D'.O.M. #l).
C. A::^YSIS 32AiJCH
Th"^' Anal3''sis Branch, Ccnoliance Division, estahlished April 12, 1934,
absoroed the personnel ^.nd daties of the Laoor and. Tra.de Practice Branches
abolished (C- G. #85) PPiA correspondence and interpretations '-^ere also
handled bj?- thp Analysis Branch,
D. T£::a,:i':ATiGiT . . • ,
The personnel, recoids aaid jna.te:-ial of the Oompli.ance Division,
KQA Pe^ional and State Offices -.v^re transferred to the Field Division,
ImPA, on Aujjust 29, 1955. (Gf:"ice Iistriiction #21)
V. ?ATIG:;AL CGLTLIAIICE JGARD (October 2S, 1933 to hay 21, 1934)
.. " "A. OR 1 511' ALP PU7.P0SE , '
A "a-tiori"! Ccm'jliance Boaid ve.z 'established in the IIHA on October 26,
1935 for the purpose of: (l) performing ill necessary d.j.ties and fiinctlons
of the PRA. Policy Board, abolished., (2) uoon reference of coraolaints from
the national Compliance Director, iindert-iiiin.^ further attempts at adjust-
ment, recommend- e-"ceptions, remove the Blue Jila^le, or recommend reference
to the Federal Trade Commission or the Attorney General for p-opropriate
action (Office Order #40). Although Office Order #40 and Office j'emorandum
dated October 28, 1933, stated that no division of KEIA other than the
Blue £a~le Branch, Compliance Division, should attempt to interpret the
PPlA, all such interpretations were considered and approved, b.y the. National
Compliance Board, Also see "National Comoliance Board", pages- 137 - 139.
B. ClG.U'IZATIOg
The personnel of the oririnxl "vai"ional Co.rapliance Board (first meeting
October 30, 1953), consisted of: (l) Acting Chairman, Colonel Robert ¥.
Lea (I'.'r. ¥n. i, Da,vis, a,ppointed Chairnan and ".'at i onal Com-oliajice Director,
IToveraber 24, 1953, Office Order #45), (•) Actin^- Industrial Adviser, Mr,
C, L, Heyni^er, '{V.Tm L, D, Thompkins ap'ocinted Industrial Adviser by the
Chairmaji of the Industrial Advisory Bo ^rc on or -^bout llovenber 1, 1933),
(3) Labor Adviser, Dr. Lee Woln.an, appointed b-r the Chairm-'n of the Labor
3819
-so-
Advisory Bo-^rd, Peraani=nt Advisers to the rational C^'TClirince Board:
(1) Counsel, Frp.nlclin S. Poll''k, •^.ssigned by the Le-^al Division, V3.A,
(2) Economic end Statistical Adviser, Stanley I, Posner, assigned bjr the
Research .•^.nd Plcnning Division, l\iEA. £:-:ecative Secretary, G. Claiborne
Royall,. Jr. (Ofiice Orders #40 md #45).
C. l:£?:i:U'ATIC':'^i
On i:.ey 31, 1934, the lT"tion\l Corajli^nce Lo-rd '"^.s pbolish'^d and its
functions anc a^-rsonnel ■■■er^ t.;'nisf '^rred to the Corajliance Division, 'i-TRA.
(Office 0- cVr ^fSn).
VI. 'ADVlSOTf 'COUITCIL , CGIPLIAI'::Ch: Division, :mA. (ray 35, 1S34 to June 8,
1S54)
Dr. Altme^^er, Chief of the- Comoliancp Division, '.IRA, on ''ay 33, 1S34,
requested and authorized the neinbers of the luational Com-oliance Board
(abolished) to continue to serve as Councilors until further notice,
(pirst Bpeting Advisory Council, Co;.Toli-^nce Division 2\TRA) . The functions
and duti("-s revi.ained the sane as thos*^ delegated to the former National
Compliance Board. Capt'in Heni"" Williams vo.s aopointed Chairman aoid
Messrs. Behne^r rnd Ruialey continued cas Labor and Industrial Advisers,
respectively.
VII. COi,PLIiii>i'CE COUNCIL, iJRA
'On June 8, 1934, the nane of the Ac'vic-ory Coancil, Coraoliance
Division, IIRA, v.'as chan-?:ed to Compli-nce Council, IJTlA, because of conflicts
?7ith other Advisory Councils. Captain Henry Williams continued as Chairman
of the Compliance Council until his resignation on September 5, 1934,
Mr. Ruinley continued as Industrial Adviser and also acted as Chairman.
La.ter, a second Com--jliance Council, ITIA, 'Tas orgaJiized to assist in
disposing; of the la.rge volume of cases '7hich had accumulated. Mr. Eumley
served as Industrial Lember and Chairman of one, and lir. Behney as Labor
Menber and Chairman of the other,
VIII. SIE.STITOTIOl^TS TO PHE PRESIDJillTT' S '"iELIPLOTiiEITT AG-REEMEIT?
A, AUTHOt.ITY'
The authority for slloi'iiar trades and industries to substitute certain
provisions of codes of fair competition, submitted by them for approval by
ERA, for correspond iiv'^ provisions of the PRA, was incorporated in Paragraph
#13, PRA, '"'riich stated: "This agreement shall cease - — , if the IIRA so
elects, rcoon sabmission of a, code to rrhich the undersigned is subject and
substitution of any of its provisions for any of the terms of this
agreement".
In the beginning the petitions submitted b;'- trades and industries
to substitute proposed code provisions for PRA provisions vere handled by
the Deputy Administrators hrndling the particilar codes. This procedure
resulted in general confusion axid lack of uniformity in policy and resulted
in establishment of the PRA Policy Board on August V, 193?>. Among other
duties assigned to tais board, it \7as to "consider a.:\d. report to the
National Recover"'- Administiator upon petitions for substitutions of code
provisions for PRA provisions under Section 15, PRA (0.0. #13)",
9819
-51-
'^* i:OPiriCATIGgS GF SlFiSIITUTIQ-TS
In ad:atioii to a;TOrovir.:: 'oubstitiitio'io to f.ip P""A, the "".A in ^. n-'on'bpr
of instances approved modifications of th.-3 suuPtitutions, p,s -for example,
the 'QiodifiCc.tion of the SMOstitution for P-r-.-raph ^;^3, P'lA (n-^ximum hours
applicable to industrial :7orkers) granted' to the I-'eat Packin.'; Industry'-",
approved 'b-r General Johnson on J'one 15, 1954 for a period of four 'Teehs
and subsequer.tl^'- e-tended until January 10, 1S;;;5. The ; odif icatirn
nentioned nar. appi-oved on rt coiTienda.tion of the federal Surplus Relief
Corporation, in order to further the energenc7 cattle ouyinj; and beef
canning pr0::;rar: for relief of the dr^ought cituatirn, and on account of the
difficulty of obtaining and training additionnl employees to meet the
emergency situation during the summer and fall of 1934,
C. INSTFJJCTIGi:S rOK SHEhTTIiyG PETITIQ-.'S 10:^. SUPSTITUTIOirS
le I" A CGD£ .7AS Uh 7IL^ -."IIH I'd.: CGi:T~:GL DIVISIGi', lUA,
The petitioner vas instructed to: (1) oo'- ^in th^ code or :\ co-'oy
thereof, (2) prepare a "petition for ITRA consent to substitution", in
quad ruoli c:\te soecial forms provided, setting out in full the code
orovisions to be substituted ajid tn<^ P3A paragraphs to be elimin^'ted bj^
nuTiper, and (3) present the code anc the petition, together vrith credentials
sho-.7ing that the petitioners r'ere duly constituted representatives of the
trade or industr;','- to the Secretary of the PPA Policy Bogrd.
2. IP "0 CGD£ HAD BliElT SU3I;ITT£I! TG THS CG'IT^.GL 3IVISIGF
The petitioner vas advised: (l) that a basic code muf^t be submitted-
before the PHA Policy Board could consider any petition (to exoedite the
submission of a basic code for this -purpose a model form xia.s provided),
(?) to frame its code as closely to the model form as practicable, in
order to ercpedit? the consideration of the petition by the Bo^rd, and (3)
th^t the so-called "basic code" need not be submitted to the Control
Division, LHiA, but "ight copi-es should 'be submitted directly to the
Secretary-- of the Board as set forth in (3) above.
D. PGLICIES TGLLG'TES 3Y THE p-^A PGLICY jSGA^.-'^'' Ill CG'JSIDsrJ-TG
PiflTIGUS TC^ 3U33TIT:t:IG1:S 1(J TaZ P2A
PHA Policy Board instructions to petitioners -jere as follorfs;
1. PSGPGSEI) code FI10VISIG:TS VS, PHA PRGVISIGiiS
"--?^ v;ill not elect to approve the substitutions of the provisions
of Codes for Paragraphs of PHA unless such Code Provisions cover the same
ground as the PHA paragraph aud unless the substance of such -orovisions are
within the spirit of the PPJl, i.e., to snorten hours and raise wages to
increase employment and -purchasing po-^er to approxiriately the 1929 level,"
2. A5S£1IC£ GP CGD£ P^GTISIGi^S
"liElA allo'-3 no modifications of PHA if ther'^ is no Code r^rovision ^-/hich
can be substituted. The PHA Policy 3or.,rd has no jurisciction to act in
such cases",
9819
-S2"
5. FUliCilcrc OF FRA POLICY ".OJCD
"The only fmctign of the Bora-d is to mss on the n-oplic-oilit^^ of '
the Code provisions as -litten. This does not allow anv" targrininp-" or
necotiatmg or personal interviews. ' Such a procedure is not only ina-'TOro-
priate, tut it does not allovr for the -^ororaot treatment to vrhich all
petitions are entitled". Hov.-pver, the prohibition was waived in rainy
inst.ances,
"To cooper?.te with those who are vailing to -mend the wa/^:es and hours
provisions of a suhmitted codp so as to have it within the spirit of PRA
for substitution ourposes, the following procedure has "been adopted:
(1) Obtain fro^u th^ r^c^ption clerk '-, work sheet, fill this in,
stating in the oroper pl-ces (a) the shortest -possible "ork week, (b)
the highest possible wage, which the industry must have or go without
the Blue Eagle.*
(2) Leave the iTorh sheet -ith the Secretar-"- of the Board. J\Tote:.
Petitioners may attach to the v/ork sheet statistical data to show that
these provisions will bring wages and hours to approximately the 1929
level. (Employment data requested, for wage earners only, was (a) number
employed in the industry in 1929, (b) number employed in latest available
period in 19S3, (c) average hours actually worked per wage earner in 1929,
and (d) average hours actually'- worked oer week per v^rage earner in latest
available period in 1953. Wages data requested was (a) average hourly,
wage rates for unskilled wa,?e earners (male and female) in 1929, (b)
average hourly wage rates for unskilled (male and female) in latest
available "oeriod in 1933, In cases where the oetitioner requested
tolerances r^^oove the mavinun ^'ork week, they werr -^sked to submit actual
employment dat- by months for 1929, 1932 and available months in 1933,
Although thp Work Sheet stated, "no petition to substitute for
paragraphs other than 2 - Laxinura Hours; 3 - haxim-om Hours; 4 - Exemptions
and S - Minimum Wages, will bp considered" this policy was not adhered to
as a study of the P2A substitutions approved will show. (See MA Bulletin
t6 and "PRA Substitutions, Appendix "7", especially substitutions ap^iroved
for "Utilities" covering paragraphs 2 to 7 inclusive aaid "Bailor ITewsoaper
Publishing" covering all paragraphs of the PRA exceot #8 - Anti-Subterfure.
and fr^in _ Cooperation).
(3) _ Mrphe Policy Board will render a decision on this basis as
soon as possible (after a statistical analysis has been made to determine
whether or not the proposed w-^ges and hours, will bring em-olojTnent and
purchasing power to approximately the 1929 l.=vel) ".
(4) - "If the Policy Board approves the optition it will draft
a coee provision which will include the requesi-ed changes. This draft will
be orepared for the signature of tne oetitioner and v/hen signed will be
immediately sent by the board to General Jonnson for his agnature. "
"Apparently this means a, statement of the shortest wpek ,and highest
wage the indu.stry could ador)t."
9819
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(5) "If the -Detition is rojocteo oy the Board, the Board
will return the Work Sheet with a notation as to the: (a) work
week, and (b) minimum \-ia.Qe, which vill be api^rovod by the Board.
If the Industry a^^rees to this, the Bo^rd v,-ili draft Code sections
which include these provisions — this \-ill be approved by the Board
and sent to General JCimSoh".
5. D3ADLIHZ FOi: SUBivilTTIlTG PETITIOITS FOR SUBSTITUTIOKS
In a .nemorandum dated Se^otember 6, 1933, General Hammond
recommended to the SPA acaninistrator that no petitions for sub-
stitutions to the PilA. b'o considered in cases where proposed codes
v/ere filed with I3A after i.iidnight September 15, 1333. Press He-
lease 742, dated September 13, 1933, states tha.t October 1, 1933
was the deadline for BUbstitutihii proposed code provisions for
P3A provisions, and that the s^ibstitutions of code provis inns wh;rc
less than 1,000 employees were involved, would not be approved.
IIRA. 3r-llctin Hn. 6, "Substituted Vfei'es and H9,urs Provisions of the
PRA.", dated October 14, 1933, states on page III tl:ia,t no further
substitutions will be approved. 31:wCcpt in a fev/ ca.ses .such as the
Cotton Seed Crushing Industry/ substitiition approved December 1,
1933, no substitutions to the PIIA vi'ere ap-oroved ?fter October 1,
1933. •■■
3. MTUIS OP SUB.STITUTIOl^'S TO TK3 PHA. AlID II'DUSTRIBS AFFECTSD
V/ith few exceptions, the substituted provisions dealt with
nothing but wages or hours or both. iI?A Bulletin ''■& - "Substituted
\Tages and Hours Provisions of the P?A", d5.tod October 14, 1C33,
signed by General Jolinson, IIHA Acljuinistrator and a--'proved by
Secretary of Commerce Ropor, Chairman, Special Industrial Recovery
Board, contains the text nf all substitutions to the PRA ai^proved
or authorized by the IIPA, except those for trades and industries
covered by approved codes October 14, 1933 and the few substitu-
tions approved subsequent to tlia.t date. The substitution approved
on July 31, 1933, for the "Retail Dry Goods, Department, Specialty
Shop, Lfeil Order, Lien's Clothing: and Furnishings, Furniture, Hard-
ware, and Shoe Store Trade" w3.s omitted, because approval of the
"General Retail Code" v;as erq^ected at an early date (*).
(*) In Appendix "F" of this report an attempt ha.s been made
to furnish corriplete inforrar.tion relative to; (l) the names
of all industries and/or trades v..iich petitioned to NRA.
for permission to substitute or modify substitutions of
proposed code provisions for PRA provisions, (.?) paragraphs
affected, (3) action t aken and date thereof, (4) reason for
rejecting or withdrawal of the petition, (5) industries
authorized representa-tive, and in cases where a code was
approved which was applicable to the trade and/or industry,
the approval and effective dates.
(Footnote continiied on next page)
9819
-34-
A study of the PIIA. Policy Board files indicates the follow-
ing pertinent infornmtion:
(l) Substitutions approved 385
(3) Petitions for stibstitutions rejected
by lIHi (including 3 rejected by the
industry (bir.jciLe, terra cctta, witch
hazel) after HSA had modified the
petitions 134
(3) Petitions presented b\it no record of
action t alcen 2
(4) Petitions for substitutions withdravm
by indiis try 45 ■
Total number of Inc'ustries -iietitionint; IT3A. for s\\b-
stitutions to P3A. ' 566
(5) Modifications of substitiitions to "BRil, . . . 13
P. APPLICATIOH OF APPaOVED SUESTITUTIOHS
All employers in a trade or industry, for which 1T3A 3.pproved
substitutions to the PHA, were permitted to operate under the
substituted provisions instead of the corresponding provisions
of the P?A. In every case the paragraphs of the PHA remained
in full force wi thout change , except where IIRA elected to substitute
propQS3d..code provisions for corresponding; PPA provisions, (KPA
Bulletins ;"-4 and, 7r6) . "it is not proper for firms to quorate under
the wages and hours provisions of the proposed code for their in-
dustry when such provisions have not yet been accepted for substi-
tution of tlB PHA. Pirais signing the PPA vdth the notation that they
v/ill operate under the hours and v^ages provisions of the proposed
code for their industry should have their agreements returned to
them with the advice that the provisions of the PRA. apply to their
employees until such time as their proposed indoistry code has been
accepted for substitution. "Vihere an employer is honestly in doubt
about which proposed industry code applies to his business, the KRA
docs not object to his operating under the accepted substitution of
a propased code which seems to apply to him and will consider him
(*) Footnote continued.
This code information as presented is incomplete, as it
involves a conTplicated -problem due to the fact that except
in a few instances definitions of the trades or industries
involved were not incorporated in tho substitutions and also
due to the problem of multiple code coverage. The time alloted
for submission of this report will not peimit as exhaustive a
study PS it required.
See also Uorlc 1/iaterials No. 30.
9819
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as operating in haiTionj'' v/itli the spirit of the ?xtA if he does
so." (Liasison Circr.lar ■,^39, Septeober 8, 1S33). "Vfnen an em-
ployer has signed the PRA, ivithout modification, and where siib-
seq-uently a modification of the ??A has Tjeen approved for a ^iven
industry, of which the emi-jloyer is a member, such employer may
operate under the approved modification of the T?A for his industry,
just the same as any other employer in this industry. To do other-
wise \7ould be to most u.yustly penalize those v/ho have Gho\7n a most
ccramendable and patriotic spirit of cooperation". (T. S. Hammond,
Au^. 5, 1933).
"Approval of a substitution by the IIRA is not a guarantee
that the substituted provisions \?ill be approved v,'ithout clian£;e in
the permanent Code of Fair Ccmi^etition for the TDarticular trade
or industry". (MRA Bulletin :}6) .
The fact that USA consented to the substitxitio.i of the wages
and hours provisions of a proposed code for corr isponding provisions
of the ?RA did not deprive a member of the particular industry involved
of his right to petition for indiviciual relief due to unavoidable hard-
ship as provided in Paragraph -"14, PEA. (h:RA Bulletin -H)
G. coi.i:..3:i:TS
In a n\ijnber of instances, especially in the cases of "Utilities"
and^the "feat Pachinj;; Industry", the substitutions allov/ed the members
to do practically anything they desired and yet operate under the PHA.
1. UriLIIIBS (Blectric Light and Power, Gas Operating Utility,
natural Gas, Telegraphic CoraiTiuni cations and
TeleT)hone ConTpanies)
The substitutions approved for these industries cancelled Para-
graph #7, PSA, which provided that the cornpensation for employment
now in excess of the minimum wages specified, should not be reduced
(notwithstanding tl:iat the hours wor-:edin such eniployment may be rs-
duoed) and to increase the pay for such employment by an equitable
readjustment of all pay schedules, No provision was incorporated
in the substitutions for Paragraph ■,}7 cancelled; therefore, they
were not required to maintain wage scales above the minimum and they
were not required to readjust equitably all pay schedules. See also
"Telegraphic communications industry", Appendix "G".
2. H3AT PACKIilG IKDUSTHY
Paragraph 4 (a) substitution approved for the Meat Packing
Industry states: "The rr^xiraum hours fixed in the foregoing paragraphs
?r2 and #3 shall not apply to orai^loyces in executive, managerial",
supervisory or technical capacities, nor to their immediate assis-
tants", and (b) " oiroloyces exercising managerial functions viiio
now receive more than $35.00 per week". The wording of these ^ara-
g-raphs presented a n-amber of problems: (l) Pamgraph .HCb) exempted
irorc maximum hours employees exercising managei-ial functions only in
9819
-36-
tlie event they received more tlTan $35,00 per week, while Paragraph
vr4(a) exempted from raazimiiiii hours, employees in executive, mana^';erial,
supervisor;/ or teclinical capacities, regardless of the weekly salary
received, and (2) the term "immediate assistant" was not definite
and was construed to include rany employees which never should or
were intended to "be exempted from the maximum hours provisions.
9819
IX. INTZBPiffiTATIONS OF THE PEA
A. SP5CLA.L INTE^gRETATIOlIS COMIJITTSE
The PRA as originally drafted was subject to interpretation
even before it was released to employers for signature on July 27, 1933.
This is indicated in IIRA. release #98, dated July 25, 1933, which states:
"Machinery for interpreting and clarifying the "blanket code, as
promulgated by the President, was set up in the I\r'RA today. A Committee
headed by G^meral Hammond, will receive and answer questions in relation
to interpretation of the code." This Committee, consisting of General
Hammond, Executive Director, President's Peemoloyment Program as Chair-
man, and representatives of industries, consumers, labor and the K1A. le-
gal staff, after several sittin.-;s of almost 24 hoiirs per day, developed
20 basic interpretations of the FIIA.
After ap-oroval by General Johnson, the 21 basic interpretations(* '^
(the 21st developed lateral were incorpOx-ated in NIIA. Bulletin #4 - "What
the Blue Eagle Means to You and How You Can Get It, Official Statement
of the Blue Eagle Division, NRA,." These basic interpretations were re-
le-^sed to the public as follows: Numbers 1 to 6, July 28, 1933, NRA.
release #124; Kum'^ers 7 to 12, July 31, 1933, release # 140; Nujnhers
13 to 19, July 31, 1933, release #147; Nmibers 20, August 3, 1933, re-
lease #168; and Numher 21, August 21, 1933, release #412.
B. KATIOML LABOR BOAPJ (UATIOJTAL BOAPD OF ABBITRATION''
Fear that the remarkable evidence of cooperation in the com-
mon cause of restoring employment, increasing of purchasing power,
and gratifying progress already made, might be endangered by differing
interpretations of the P?J\. by some employers and employees, led the
Industrial and Labor Advisory Boards on August 4, 1933, to unanimously
recommend the creation of a Board to protect every interest and to
which differences might be referred, The creation of this Board (er-
roneously named "National Board of Arbitration") was announced on Aug-
ust 5, 1933 in ITRA release #195.
In Executive Order #6511, Deceiriber 16, 1933, the President stated
that "The National Labor Board, created on August 5, 1933, to 'pass
promptly on any case of hardship or dispute that may arise from inter-
pretation or application of the PRA' , shall continue to adjust all in-
dustrial disputes, whether arising out of the interpretation and opera-
tion of the PRA or an?/ duly approved industrial code of fair competi-
tion, and to comDOse all conflicts threatening the industrial peace of
the country. All action heretofore taken by this Board in the discharge
of its f-inctions is hereby approved and ratified." The original Na-
tional Labor Board, as recommended by the Industrial and Labor Advisory
Boards, consisted of Honorable Robert P. Wagner, Chairman; Dr. LeO
Wolman. Chairman, Labor Advisory Board; Walter C. Teagle, Chairman, In-
dustrial Advisory Board; V/illiam Green, John L. Lewis, Gerald Swope and
Louis E. Kirstein.
(*") "See ATDr>endix G.
9819
-38-
It is doubtful whether the National La,bor Board as such, ever acted
on any interpretations of the TRk; hov?cver, they did handle a number of
PRA ca.ses involving labor disputes.
C. -PRA POLICY BOAl-il)
In anno\incing the aiooointraent of the PRA Policy Board on Au-
gust 7, 1933, General Johnson stated; "All interpretations of the PRA
requested Dy the Industrial Mediation Board, General Hamraond or other
proper' authorities shall issue from this Board. "
After the abolishment of the PRA Policy Board on October 26, 1933,
all its duties and functions were delegated to the National Compliance
Board and later to the Advisory Council, Compliance Division and final-
ly to the Compliance Council, KR.i, See Office Orders #18 and #40; "F3A
Policy Board, Chap. Ill, Sec. II and "National Compliance Board," Chap.
Ill, Sec. V, supra.
■ D. INTERPRilTATIONS SECTIONS BLUE EAGLE SIVISIOl.' :iRA
The public announcement ( IDA release #98, July 25, 1933 "^ of a
Committee to receive and answer questions regarding interpretations of
the PRA and the release of the agr^eraent 'to em'oloyers for signature on
July 27, 1933, resulted in an avalanche of inquiries by mail and wire.
To handle these inquiries and to promulgate interpretations and rulings
made by the PRA Policy Board, General Hamraond on August 11, 1933, estab-
lished the Interpretations Section of the Blue Eagle Division. See
"Blue Eagle Division NRA, " Appendix "B."
The Interpretations Section in reolying to inquiries received from
employers and consumers followed the' principles set -forth in the 21 ba-
sic inte:fpretations. In cases where the inquiries v;ere not covered by
the basic interpretations, .the problems were presented to the PRA Po-
licy' Board. Due to the great number of problems s-lbraitted, the Policy
Board as a Board was unable to render decisions without delay which re-
sulted in many interpretations and rulings being made b3r the legal ad-
viser to the Board (Kilbourne Johnston"^ and later '(Tm. P. ParnsworthV'
'Subsequent to the abolishment of the Blue Eagle Division NRA, and
the establishment of the Compliance Division, NRA, on October 26, 1933,
inter-oretations were handled by Blue Eagle, Administrative, and Analy-
sis Branches of the Compliance Division, NRA, in the order named.
TJndor the heading "General Inteipretations, Explanations, Instruc-
tions and Rulings Regarding the PRA, " in Appendix "G" of this report,
an attempt has bee made to compile and list all interpretations, etc.,
used in explaining and administering the P31A, and wherever possible the
source is given. ■ '
X. EXCEPTIONS TO THE PRA (CASES OF I jDIVIDUaL HARDSHIP)
A. AUTHORITY
The authority for granting exceutions to Individual Employers,
after signing the P31A, in cases where some particular provision or
9819
-40-
(6^ In cases of a petition requesting exception to maximuin hears,
the exact mamter of hours desired in lieu of maxim-um PRA hours
and/or any applicable approved substitution thereto.
(7) In cases of a petition requesting exception to minimum wages,
the exact wage rate desired in lieu of the wage rate pres-
cribed in the agreement and/or any applicable approved sub-
stitution.
(8) A statement that the petition had been approved in writing
by a representative of the Trade Association of the petition-
ers industry, the Local Chamber of Commerce, or a representa-
.tive of a similar organization designated by ilRA.
Note: Subsequent to September 12, 1933, petitions were re-
quired to be submitted to Local NRA Compliance Boards for pre-
liminary apBroval and not to any other organization or agency.
(9) Total number of petitioner's emuloyees, and the number affec-
ted by the exception requested.
(1^) Duties of employees affected by exception requested.
(11) A promise to abide by the decision of KRA on the petition and
in the event of a decision against the petitioner, effective
as of date of MRA decision, the original PRA. provisions and/
or provisions of any applicable apDroved substitution previous-
ly stayed by preli;ninary approval by any organization autho-
rized by IJEA.
(IS) A labor shortage certificate sigTied by the Federal Reemploy-
ment Service State Director in cases where petitions to work
longer hours were based on a shortage of labor. (Policies
followed by Exceptions Section, Blue Eagle Division, NRA.
C. EXCEPTIONS SECTION, BLUE EAQLE DIVISION, NRA
As soon as the PRA was released to employers for signature,
NRA received a large number of petitions requesting relief from certain
provisions which were causing the individual .employers great and unavoid-
able hardship.
To handle the increasing volume of petitions for exceiotions. Gene-
ral T. S. Hammond, Executive Director, President's Reemployment Program,
established on August 11;. 1933, an Exceptions Section of the Blue Eagle
Division. Mr. M. H. Pettit was appointed Chief of the Section and he
was followed by Colonel J. G. Cowling as Chief on September 7, 1933.
(See "Blue Eagle Division, NRA," Appendix "B." .
In addition to handling ordinary petitions for exceptions to the
PRA (Paragraph #14), the Exceptions Section," handled .Petitions for per-
mission to operate under Union Contracts calling for- hours longer than
the maximum allowed in the PRA. These petitions were handled in the
same manner as those presented under Paragraph #14, PRA.. (See "Con-
tracts Labor Union," Apnendix "G."
9819
-41-
Sutsequent to the atolislment of the Blue Ea^le Hivision, NRA, and
the establishment of the Compliance Division, NRA, on Octoher 26, 1933,
petitions for exceuticns were handled h^r the Blue Ea.^ile, Labor and
Analysis Brpjiches of the Compliance Division in the order named.
1. POLICIES FOLLOWED BY NRA IN CONSIDERING PEITTIONS FOR EXCEPTIOIIS
TO THE PRA
Although it was difficult to determine just what constituted "great
and unavoidable hardship, " such petitions were generally granted in the
event the petitioner clearly indicated that his only alternative was to
dismiss the era-oloyees concerned or close down the entire establishment.
Based on a thorough examination of the petition, ' the following policies
were observed by NRA:
{a) The- petition was denied if the plea was vague and unavoidable
hardship was 'not clearly substantiated. In cases where the petitioner
clearly shov/ed that the increase in labor costs due to compliance would
ruin his business because of lack of capital and/or sustained losses
for several years immediately preceedinsj signing of the PRA, the peti-
tion was given careful consideration.
(b) ' Then the petitioner pleaded scarcity of skilled labor, the pe-
tition was denied pending certif icati. n of labor shortage by the Federal
Reemployment Director of the petitioner' s district.
(c) Petitions requesting exceptions for peak season operations
were usually denied in cases where oeriods of three months or more were
involved and an adequate labor supply was available, where there was a
possibility that regular eraoloyees counted on peak -oeriods for income
to carry them through slack periods the petition was usually given fa-
vorable consideration but generally overtime nay of one and one-half
times the emiDloyee's regular rate of compensation was required in such
cases.
(d) In cases where the petitioner clearly established that due to
the peculiar nature of his business it was necessary to train new em-
ployees in the establishment and an earnest effort wr.s being made to do
this, the -oetition was sometimes granted for a specific period.
(e) A simple plea of competitive disadvantage with firms not ope-
rating under the agreement was as a rule not considered sufficient for
the granting of an exce-otion, because there were also competitive advan-
tages in operating under the P?A and displaying the Blue Eagle.
(f) TThere firms enjoyed business resultin^^ from Federal sources,
their petitions were usually denied.
(g) There was a prevailing beli&f that the nearness of the distri-
butor to the ultimate consumer meant a greater competitive advantage to
signers of the P31A., therefore, in such cases as laundries, restaurants
and other retail outlets the operators should be willing to be placed at
a considerable wage disadvantage before requesting relief from the pro-
visions of the PRA.
(h) Petitions based wholly on the plea that competitors were granted
9819
-42-
exceptions, were denied. If, however, the petitioner established that
such action resulted in serious hardship in his case, the petition might
"be given favorable consideration.
(i) In cases where new industries- or new estalilishraents in old
industries could not "be operated at a profit without operating under
low labor standards, the reasons for existence of such business were
seriously questioned.
(j) So called "non-profit" and "service industries" required spe-
cial study, (l) It was felt that many agencies such as retail credit
agencies, set up to prevent losses due to bad accounts, should not be
considered as "non-profit" agencies, and therefore, they should not be
given any special consideration; (2) it was also believed that distinct-
ly service organizations such as Y.M.C.A's, Y.w.C.A.'s, etc., should
not be granted exceptions in departments competing with outside groups,
such as restaurant or where no special benefit saccrueeL to the era-oloyee.
However, in cases where the employment might be considered as training
for public service, exceptions might be warranted.
(k) Theoretically the status of a provision of proposed codes
should have no bearing on considerations of exceptions to the PRA.; how-
ever, if approvalof a code to which the petitioner would be subject,
was imminent, it was not considered good policy to overrule a Local
Compliance Board and alter changes in wages and hours temporarily autho-
rized, for a short time pending approval of the code.
(l) Where the petitioner requested relief from the FHA on the groiond
that he would conform to the provision of the industry's proposed code,
the petition was denied because to do otherwise would mean prejudging
the code.
(m) Deputies were usually consulted before acting on petitions
for exception to the FHA, if proposed codes for the petitioners indus-
tries had been given public hearings and they were in the final stages
of development, for the purpose of ascertaining their status and pro-
visions likely to be approved.
(n) If a petition requested more relief than would likely be pro-
vided in a code awaiting approval, the petition was either denied or
modified to conform to the provisions expected to be approved in the
code.
(o) In cases where a substitution had been approved for the peti-
tioner's industry, the petition was denied and a copy of the substitu-
tion was sent to the petitioner unless the substitution failed to meet
all requirements of the petitioner.
(p) If a code had been approved which was applicable to the pe-
titioner' s industry, the petition was denied and the petitioner was
notified that he must operate under the code provisions.
(q) In cases of Union Contracts made prior to PRA where a copy
of the Contract was submitted with the petition (l) if the employees
were paid by the day, week or month, the petition was denied; (2) if
the employees were paid by the hour and the petitioner had attempted
-43- ■
to adjust the raaxinum hours of employment downward and eouitauly adjust
upward the hourly '--age rate, and the Union would not agree, the
o'-tition -as f,T-nted; ot-\er'7ise, the netition was denied or the
•Detitioner reauested to attevipt such adjustments.
(r) Petitions referring to Paragraph #12, HiA, (forward contracts)
were given soecial consideration and the petitioner Was advised to
either seek an adjustment from the o-ther party or the petition was
decided on its o\7n merits.
(t) Petitions involving section 7(a) of KIEA were denied.
2. PROCEDITS F0LL0M:D BY EU 11^ CONSIDEP.ING PETITIONS FOR EXCEPTIONS
TO TES PRA
Petitions for e-cer.tion<3 to the PRA received by the "Exceptions
Section, Blue Eagle Di-ision, were first .assigned to analysts for
review, brief digests ''ere prepare/ii and the petitions and digests after
being reviewed bi' Assistant Counsels were submitted to the National ^
Compliance Board or their authorized representatives for final considera-
tion. In cases of doubt advice was obtained from DeiDuty Administrators,
the Labor and/or Industrial Advisory Boards, or the. Liaison Office to
A. A. A.
On November 28, 1933, the following r-lans presented by Mr. Pollak
to the National ComiDliauce Board were apT)roved for handling future
petitions and the 20GT or mo^-e on hand at that time awaiting action:
.(a) FUTIffiE PETITIONS (LOCAL)
(1) Table all restaurant petitions until December 15, 1933,
except those asking for a variation of mo-e than 10;:. in hours and/or
wages.
(2) All other petitions to be acted on by the Compliance
Division without consultation with the National Compliance Board except
in extreme cases.
(3) Petitions involving non-unanimous ap^oroval by a Local NRA
Compliance Board and extreme cases (exce'ot as established by TD-r^ecedent)
to be referred to the National Compliance Board,
(b) FUTITRS P5TITI01TS (NON-LOCAL)
1. No general rules ^^e-'-e formralatcd for tabling or approving
future -oetitions (non-local), e::ce-ot vfhere covered by ^orecedent; all
were considered by the National Compliance Board, Advisory Council,
Corarpliance Division', NRA, or the Comoliance Council, NRA.
(c) PEjTDING PETITIONS .
1. Table if unaninouslv" a-onroved r-nd they were not "extreme."
2. Review if "extreme" or not unanimously anproved by local NRA
Compliance Boa.rds,
9819
„44-
(d) NON-EXTEEHE CASES
Petitions reouesting relief within the following limits were not
considered extrcne ;
1. Original PRL. . .- , '
(a') Paragranh 7^2 (Maximum Hours) - 44 Sours"
("b') Paragraph #3 (Maximum Hours) - 40 Hours, or 8 hours in
any one day
(c') Paragraph #5 (Minimum Wages) —
In Cities of Not less than
.. Over 500, ODC $13.50
'I . 250,000 13.05 . _.
.. ■ ^ 'I 2,500 12.60 -
Under 2,500 10.80
(d') Paragraph #6 (Minimum Vages)- Not less than 27 cents.
(2) SUBSTITUTIONS- TO THE PRA
(a') Hours - 10 percent provided that except in Paragraph #2
(Maximum Hours) - 48 hours and Paragraph #3 -(Mpximura Hours) - 44 hours,
and provided that in cases of substitution and no modification had "been
made of Paragraph #3 (maximum hours) forty hours vras to he the limit..
("b') Wages - Same as ahove (IC)
(e) LOCAL VS NON-LOCAL TRADES OR IITOUSTTUES
It was agreed hy the National Compliance Board that where the
facts presented in the body of the netition indicated that the petitioner
was operating in competition with outside estp.hlishments even though
the petitioner was in an industry ordinarily considered local, the
petition itself should he treated as non-local.
On Decemher 5, 1933, Dr. A. J. Altraeyer, Chief, Compliance Division,
NEA, reported to the National CoratDliance Board that 2000 petitions for
exceDtions to the PEA were still Trending and that the formula approved
hy the Board on November 28, 1933 had eliminated only 20< of the entire
group. Dr.- Altmeyer then submitted a new formula, the approval of _ .
which was held in abeyance until the next meeting to enable further
study. On December 6, 1933, the Board authorized Mr. Behney, Labor
Adviser to work with the Exceptions Section in examinin,- all petitions
for exceptions to the PEA which had not already been r.-cted upon and to
use his best judgment in recommending disposition thereof with advice
that decisions of Local NBA Compliance Boards should not be overruled
without good and sufficient reason.
D. LOCAL NRA COMPLIANCE BOARDS
1, PETITIONS FOR EXCEPTIONS PEESENTED UNDEE PARAGEAPH #14, PEA
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Prior to the orij^anization and estrblisliment of Local ITRA.
Compliance Boards, petitioners for exceptions to the PRA, (Paragraph
#14) were instructed to have their petitions aB-oroved ty their trade
Association, Local Chamber of Commerce or other representative
organization designated by NRA and then submit it to the Administration
for final action. (iTRA. Bulletin 7f4).
Subsequent to Septeraoer 12, 1933, petitioners were instructed to
submit all petitions for exception from the various -orovisions of the
PRA, direct to their Local N3A Coraoliance Board and from that date
(September 12, 1933) no petition should be presented to or- accepted by
Trade Associations, Chambers of Commerce or an;;'' other organizations.
(KRA Bulletin Tf5).
(a) LOCAL ITRA C0I1FLIA1CE BOA^S REG-ULATIOHS FOR RAEDLIIia
PA^'AGFiAPH #14. PRA PETITIONS yOR EXCEPTIONS (ivEF-A
, BULLET I!J -7^5)
(1) "All -oetitions for exemption from the provisions of the
President's Reemployment Agreement under paragraph (14) thereof (herein-
after called "Petitions") should be submitted, in duplicate direct to
the Board (Local ITRA Compliance Board).
(2) From the date of these regulations, September 12, 1933, no
petition shall oe presented to or accepted by trade associations,
chambers of comnerce, or any other organizations.
(3) The Question presented by a petition is whether or not some
particular provision of the President's Agreement, because of peculiar
circumstances, 'Tould create great and unavoidable hardship in the
case of the individual petitioner. The burden is on the petitioner to
present sufficient facts in his vrritten petition to decide this
question. The petition should be signed and sworn to before a notary,
(4) 'Jo exenption from paragraphs No, 1 (Child Labor); No. 8
(Anti-Subterfuge); No, 1 (Cooperation); No. 11 (Codes); or No. 13
(Termination and Substitution), of the President's Reemployment
Agreement may be approved and no exemption from a statement of an
interpretation or understajiding of Section 7 (a) or Section 10(b) of
the National Industrial Recovery Act may be approved.
(5) If the board finds 'by unanimous vote that the petition is
justified by the facts, it should be approved and the petitioner
informed of this fact. He maj'' then operate under his petition without
displaying anjr "provisiona.l" bar upon his Blue Eagle.
(6) If the board finds by unanimous vote that the petition is not
justified by the facts, it should be disapproved and the petitioner
informed of this fact,
(7) In either of the above cases, one copy of the petition, with
the Board's action and the reasons therefor, should be forwarded to the
secretary of the District Recovery Board at the District Office, The
other copy should be kept in the files of the board, NRA may reverse
the action of the board in these cases if it finds that such action is
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unjustif ied. In order to prevent such reve"sals, the board should
assu:'e itself of NBA policies "by requests for information from the
secretary of the District Recovery Board at the District Office in all
douhtful cases.
(8) If the "board finds by a' majority vote tnat- the petition is
or is not justified "by the fa.cts, the petition, with majority and
minority reasons for approving or rejecting it ap-oended thereto, should
"be forwarded to the Secretary of the District Recovery Board at the
District Office, a copy "being kept in the files of the Board, An
approval in such cases will operate as provisional permission to pro-
ceed in accordance with the petition as approved, pending final action
by KRA. Until such time as WA does act, the petitioner should be
informed that he may not display the Blue Eagle except s'ith a. white
bar across its breast bearing the word "Provisional".
(9) If a substitution has already been granted for the employer's
trade or industry, the Board should require a mvich clearer showing of
individual hardship before granting an individual exemption with respect
to the substituted provisions.
(IC) In any case in which the petitioner asks for more than one
exemption, each exemption should be considered separately and a
separate decision made on each, so that a petition may be approved in
part and denied in part of the facts so warrant.
(11) In no case 'should a group exemption be allowed. Paragraph
#14 of the President's Agreement applies only to cases of individual
hardship. , ; •
(12) In every case a copy of the petition with a notation of the
decision of the Board and a copy of the recommendation of the Board, if
any, should be kept in the files of the Board.
(13) The files of the Board on exceptions should not be open to
the public". _ * . ' • '
2. PETITIONS POP. PEmnSSION TO OPERA.TE UNDER UIHON CONTRACTS
Originally, petitions to operate under Union Contracts were sub-
mitted directly to 'the NRA for consideration. The approval of a
trade association or other representative organization '-as not required
(NRA Bulletin #4). Following the establishment of Local NRA Compliance
Boards, petitions involving Union Contracts were first submitted to
these Boards for consideration, and then to 'the WA for final considera-
tion (NRA Bulletin '#5).
(a) LOCAL MA CONPLIANCE BOARD REOULATIONS FOR HANDLING PRA.
PETITIONS TO OPERATE UICDER UNION CONTPACTS (MIA. BUL^^TIN
1^5).
(l) "Every petition to work employees under a Labor contract for
longer hours than are permitted under the President's Reemployment
Agreement should be signed in duplicate at the foot of the petition by
the petitioner, and sworn to before a Notary, It should be accompanied
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ty t'?o certified co-oies of the contrnct.
(2) If the laoor contract crlls for the payment of \7ages (at a
rate r'bove the rninimiim under the President's Reemt)loyinent Agreement)
by the day, 'veek, or month, the^e should be no grounds for a petition.
By Daragraph #7 of the President's Reemployment Agreement, the employer
h-is -oromised to reduce the hours of -'orkers Daid by the day, TOek or
month, to the maximum under the Arreeraent -ithout reducin;^ their pay
by the day, -eek or month. He is, therefore, obliged to make an offer
to tnis effect to his eriTDloyees under the contract, and undoubtedly
the offer 'vill be accepted. Such petitions should be refused unless the
em-oloyer crji show some unusual reason why his emioloyees are iin'^'illing
to work shorter hours a,t the same wage.
(5) The -n^-oTjer cp.bb for a Lfbor contract petition is one in which
the contract calls for Dayment of the em-oloyees by the hour. An
em^i)loyer with such a contract should Toropose to his workers a reduction
o*:* their hours to the maxiitnun, coiipled with an uiDward equitaole readjust-
ment of their hourly rate, in accordance with paragra-oh #7 of the
President's Reemriloyraent Agreement, rs explained in basic interpreta-
tions #1 and #20. If the employer and his employees cannot agree on
•the equitable -readjustment, so that an agreement cannot be reached for
a reduction of hours, a netition may be filed.
(4) If no atteirot has been made at arriving at an eouitable
readjust lent by agreement the petition should be denied.
(5) Provided, 'that it is a proTier case for a ;oetition, as
described above, the Board should then satisfy itself that the con-
tract is a bona fide contract. If it was made on or after June 16,
but not before the date when the employer signed the President's
Reen~3loyment Agreement, the Borrd snould make certain that the contract
was not made to evade the President's Reenriloyment Agreement.
(6) If the contract wp.s made after the em-oloyer signed the
President's Seen^loyment Agreement, or for the purpose of evasion, the
netition should be denied.
(7) The ->Detation shoiild also oe denied if the contract is subject
"to change or termination at the' will of the employer.
(8) If the petition indicates that mediation by the Board might
lead to agreement between the em-oloyer and his employees, the Board
should attempt mediation. This should be done by contracting the
emcloyees, or their represent.^^tives , pnd offering to mediate. If the
mediation is successful, the Board ma^r give permission to the employer
to operate under conditions agreed u\on by the employer with liis
employees.
(9) If the mediation fails, or if the Board finds that mediation
is useless, the Board may give nermission to the emxiloyer to operate
under the existing contract.
(IC) In any c-se '^here the Board believes that further mediation
should be attempted, it should refer trie petition, ^-ith a re-oort on
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r
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the situp.tion, direct to the 'Nntional Lator Board, 'iashington, D.C. A
re-oort o-f this section should "be sent to the Secretary of the District
Rrjcuvery Board at the District Office.
(11) If a TDetition is denied or amDroved, one cony of the
petition and contract -ith a report of the Board's actipn and reason
therefor should "be forwarded to the Secretnry of the District Recovery
Board at the District Office, The other co'oy of the; petition and con-
tract should "be kent in the files of the Board,
(12) Where the petition has been denied because of the failure of
the e roloyer to attenot an equitable readjustment (4) above, the employe
^-jill Je entitled to the Blue Eagle if he shortens the hours to the
maximum, and keens the ^'eekly envelope entact. In this case the
emoloyee gets the same weekly r;age he received under the union contract
(provided that i^age is over the minimum provided for the President's
Agreement), If the eranloyer later atterants to malce adjustment, he ryill
be entitled to oetition again.
(13) If the petition is denied because- the- emnloyer signed the
union contract after signing the Agreement, or to ".evade the Agreement,
he may earn the Blue Eagle only by keeping the ^veekly, pay evelope intact,
and conforming to the maximum hours provisions of the President's
Agreement,
(14) If -the netition is denied because the contract is subject to
change or termination at the x^ill of the emnloyer, the employer will be
entitled to the Blue Eagle only if he comnlies with all the nrovisions of
the President's Agreement". (Also see "Contracts (Labor Union) " and
"Parafgraph #7, PEA", Ar>-'endix "G".) , -
E, STATE Wk COMPLI.^TCE DI^iECTORS
In the Spring of 1934, after the PRA had oeen extended by
Executive Order, the functions of Local UFA Comnlipnce Boards relating
to petitions for excentions to the PRA were carried on by State NRA
Co Toliance Directors, Although many Local Cora-Dliance Boards were
retained after the establishment of State Directors, they acted for a
time only in an advisory ca,-Dacity, without authority to grant exceptions
in the first instance.
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E, VOLUME AND DISPOSITION
1, FRICn TO ESTAnLISHLIiiNT OF LOCAL NHA COMPLIANCE BOARDS
Although the following figures are ariproximate, they cover very
closely the volume of exceptions handled hy NEA prior to the establish-
ment of Local NBA ComDliance Boards:
Approved (Usually as a result of personal interview) 100
Denied (Special consideration required) 500
Denied (Intervening Codes, substitution granted,
deficiency in petition, 7 (a) cases,
child Ifbor cases) 24,200
Sent to Local KEA Comi-liance Boards li_200
Total number received after approval by
Trade Associations, etc., 26,000
2. AFTER ESTABLISHMENT OF LOCAL NRA COMPLIANCE BOARDS
Denied (intervening Codes, unanimously denied by
Local ComDliance Boards, termination of
period involved, 7 (a) and Child Labor
Cases,) 2,919
Denied (Special Consideration required) 697
Approved, as presented '*'*°
Approved after modification 1,014
Fending May 28, 1935 ;
2
Total received from Local Compliance Boards and
State Directors, 5,077
XI. OOVEEIJMENT CONTRACTS Al^ LOAITS
A, AWARDING OF GOVEE-VIvjENT CONTRACTS OR LOAIig, CONTINGENT UPON
COI.gLlAi:CE WITH PEA OR AP F50V£p_C0DES '
■1. EXECUTIVE ORDER #6245
"(1) Contracts for Supplies. Every contract entered into
within the limits of tne United States by the United States or any of
its agencies or instrumentalities , except as set forth in the
proviso under rersgraph (a) below, shall provide and require that (a) The
Contrpctor shall complv , if there be no approved code with the
provisions of the President's Reemployment Agreement without regard
to whether the Contractor is himself, a party to such code or agreement ,
(b) If the Contractor fails to comply with the foregoing
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provisions, the Goveriiment may by written notice to the Contractor
terminate the Contractor's right to proceed with the contract, and
purchase in the o-pen market- the -undelivered portion of the supnlies
covered "by the contract, and the contractor and his sureties shall be
liable to the Government for any excess cost occasioned "the Govern-
ment thereby.
' (2) Disbursing Officers. No Disbursing Officer sliall
be liable for any -nayment made under the provisions of the foregoing
Act (Public No. 67), or any Executive Order issued under Authority
of that Act, or for the unobligated balance of any overoajmient
involved. "
Executive Order =^-6246 cited kbove, in part, specified that
Government Contractors may have their contracts with the Government
terminated in the event they failed to comply with the -orrvisions
of the PRA., if there was no aiDplicable code ap-oroved for their
industry. In Executive Order ,','6646, dated March 14^ 1934, the
President, by virtue of authority, vested in him as President rf the
United States specified that:
2. EXECUTIVE ORDEH #6646,
"(1 (a) All invitations to bidders hereafter promulgated 1
by or in behalf of any executive department or inde-oendent establishment
or other agency or instrumentality of the United States, including '
Government-owned and Government-controlled corporations , shall contain
a provision to the effect that no bid will be considered unless it in-
cludes or is accompanied by a certificate duly executed by the bidder
if engaged in any trade or industry for which there is no apioroved code
of fair comrietition, then stating that as to such trade or industry he
has become a party to and is complying with and will continue to comply
with an agreement with the President under Section 4 (a) cf the National
Industrial Recovery Act. (Note: The PRA was promulgated under Section 4
(a) cf the NIRA).
(1 (b) No bid which does not comply with the foregoing
requirements shall be considered accepted.
(1 (c) All contracts and .-ourchase orders authorized by
any agency of the United States shall contain a provision to the effect
that the party or parties awarded any such contract or purchase order
shall comply if engaged in any trade or industry for which there is
no approved code , then, as to such trade or industry, with an
agreement with the President as aforesaid; and that the United States
shall have the right to cancel any contract for failure to comply with
such provision and make open market purcha,ses or have the work called
for by the contract otherwise performed, at the expense of the Contractor.
(1 (d) No agency of the United States and no Government
Contractor or su-oplicr shall hereafter acceDt or purchase for the -oer-
formance of any contract or purchase order or enter into any subcontracts
for any articles, material, or supplies in whole or in part produced or
furnished by any nerson who shall, not' have certified that he is complying
with and will continue to comply with- in case there is no approved
code for the whole or any -oortion thereof, then, to that extent, with
an agreement with the President as
9819
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sfor^ssid,
(l («) Th** foT-.roinrs nrovisims of this or^i^r shall- liVP-
wis'^ aTDt^ly to ^IT n.ontrpcts .-m^ mrch-''s= or^'-rr, anthori^pd hv an^ StatR,
Ivfunicinal Coruor^tion, Local Sxi-bdivision, Person or Goiroor.-ition, m
donn-cti-n -ith xiroj'^cts carri'^c' O" t o- to I3- ■v-r.-i'^d n-a+, wholly or m
•part, -ith funds loan-d '^r f^r.-nt»d h- any nr°nc-' of th« Unit-d Stnt-s,
S?nd Pll r.ontrpnts rn(^ agr="''T=^nts for th^ m.^kinf of any suoh loan or
Igrant sh.-n -ontain a provision r'^auirin? th« State, I'AiniciTDal Corooration,
Locpl S-hdivision, Pprs'^n or Comorati-n rpne.ivlnj?: snch loan or grant, to
coiroly with th° ■nrovisi'^ns of th= ord^r: Pro-''i(^'^d, '
(a) Any ■o'^rson fals"='l-'" c°rtifyin^ as to comoliance
as aforesaid "-ho submits an^^ 'such -oroTDOSPl, hid, f^ontract or subcontract,
or acc<=")ts any -nurchps" or'^°r, may he punished as Tjrovid^d in Section
10 (a) of th-"NIRA ".
3. PUBLIC TOMS ADIHNISTRATL IJ 713G"; lATIONp (F7A BULLETIN *5l)
"(a) No hid .'"i"'l h^ r^c^iv^d form any contractor
— -if th^r^ h'^ no such' ari'oroyp.d cod^ of fair com-oetition, '"ho has not •
sign'^d and co^npi i<=id ^ith th'^ -orovisions of th^ PBA.
(h) No suhc^ntra'^t shaTi ^0 i ^t to any suhcontractor
if th'^r" h^ no a.rioroyed cod" — ~, '^ho has not sii°^'^d and corar)lifid
with th'^ PRA.,
(c) Onl'?- articl=!s, -nat^rials anci 3U"o^->li°s ■nroduced ■
'onder th^ PEA shai.l "b" iis^d hy any contractor or subcontra'-tor in
io«=irforraanc° of any '^ork coy^r^d 'hy -.th^ hid, °xn<=.V)i ^H'='n-th° contracting
officer certifies that this r'^auireTnent is not in the -o-ahlic int^r^st or
that the consea"''ent cost is unr^as'^nahle", .
B. RELIEF TO GOVSriTirElTT COI'TTBAGTOPS
On A-ug-ist 6, 19'^3,,(IIRA release #':^00) the- President said: "It has
be-^n brc ight to my at-^ention that in many instances hardshin may be iraoosed
UT)on emoloyers who sisn the P?A , -ho haye ureyiously made contracts
'"ith the G-oyemraent to sunr^l'"' goods or s'^ryices a^ fixed -orices ^''hich may
be inadeauate in yi^w of increased costs caused by shortening hours or
incr'='asing "nges in compliance -ri th agr°=^.°nts or oodes.
The "Dolicy of th" A-^njinistrati-n '"as stated in th° statement whicTi I
issued u-non signing the NIRA , This policy '^as carried ^^or^^ard in the
oroyision '^f Paragranh #1P, PPA, under which thos° making this agreement '^ith
the President also agreed to 'make an airoro-DTiate ridjustm'='nt of said fixed
cric= to m'=^t "n-"- incr^as" in cost caused by the seller, having signed the
P?J> ' , '
The United. States Goy^rnrn'^nt as a buv°r of go"ds should be "'illing
itself to take action simlTar to th-^t recomn=nd°d '0 -orivate buyers. Therefor^,
■"herev^r adjustment can be made under existin.^ la", I sha"' "* recommend that
they be made -'juider authority now possessed b^ the Executive D^-Dartm^nt.
I shall recajnnend that th= next Congress, me°tin^ in January, 1974, take
action giving authority to th^ Exec^xtive Do-oartments, under such safeguards
9819
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as th'=? Congress may axnrove, and Tnaking a.n'^'- necessary a-D"DrOTDriations to
■nrovidi=i ■ f or r'^coiTO'^nsing s^^inh ■bu'"''=!rs' Hio havp, in good faith and '-'hoi e-
h^art^dly coonRrat'^c' Trith th^^ Administration of th*^ IIIEA, and as a result
th'=!reof sho-ild Piquita.'bly h" alio^^d an incr'^as'^' in thp T)rices of good.s
furnished' in th=> int=!rim in accordance '-'ith th<^ t°rms of c^ntra-cts
ent°r°d into ''^ith the G-ovQrnm'^nt -prior to JirnQ 16^ 1933.
Because this same sit^i-atlon exists '^ith regard to- em-uloyers '^ho ha.ve
previo^isl'^'' made cont-acts ™ith States, M-uni'^.i-oalities, or oth°r local
Governments, I further recommend to tlae G-ov^rnors of the various States and
to execLitives of Counties and M\inici-Da± Units that they take siraila,r action
to allO" for eouitahle arljustments in such cas°s".
I. ACT PHOVIDING RELIE? TO GOVEPlTIffilTT CONTEACTOHS.
On June 16, 1934, the President fulfilled his "ororaise of Augu.st.6, 1933
in anioroving Putlic Act No. 369, ai^rjroved "by the 73d Congr°ss ^hich -orovided
relief to Government contra'^tors '-'hos^ costs "f r^erformance wppp increased
as a result of compliance '-^ith the NIRA airiroved June 16, 1933, and for oth^r
■DUTDOses. In this connection it should h" -oointod out that such relief -^as
authorized on"! ■>'• in cases '^'h^^r" corniolianc^ ^-Tith the NIRA was established and
irrhpr^ contracts w^re ent^r^ri into '^ith the United States -orior to August
10, 1933 (see PuMic Act') No. 369, a-niDrov°d . June 16, 1934, ArD-oendix "H".)
XII. ElIFORC'^IffiNT L? TliE PPA.
A. PITBLIC OPIHIOW. ■ ' - ■ . .
In signing th-^ NIRA, the President said:- "This Ta,'^ is a chaTi'='ng° to
our '-^hole n^OTDle. Ther° is no -DO'T^r . in America tha.t can force a^^ainst the
nuhlic-'-'i"' T such action as '-p r'^o'iire. But th^r" is no groira in America
that can 'withstand th^ force of an aroused -mhlic oioinlon. This gr°at
coo-oeration can succ^^d on^ v if thos-^ ''ho bravely go for'^ard to restore
johs have ag.q:"-essive -outlic suio-oort and those "rho l^g ar<= m-ad-^" to f'=°l th'^ \
full i^eight of iDuhlic disa-o-oroval." (NPA "luTietin No. 1.)
In a g'-neral statem°nt of -policy and -ouroosp of the PRA signed hy
General Johnson and Secreta^-y of Commerce RoDer, Chairman, Sn^ecial Industrial
Recovery Board, on Jul^^ ?0, 193:% it ^as stated: "There is no forc° here
exce-Dt conscience and opinion. This is an a.ni^eal to those good instincts
of our ToeoTole '-'hich have never he^n besought in vain. This is a t°st of
-oatriotism. It is th° time to d°monstrat'= th^ faith of our fathers and cr
belief in ourselves. Wr, are a TDeo-ole disciplined by democracy to a self-
control sufficient to -unite our niirohasing -oc^er — our labor -DO'""=r -- our
management ipo'-er to car--y out this great National oov^nant '-ith vigor, '-ith
determination but i^ith calm comoosur^ and fair -ola.y "rhich should always
mark the American way." (I'IRA Bulletin =^3),
This nolicy of basing enforcement of the PRA solely u-ioon Dublic o-oinion
'•'as follo'-'ed during the ontire -period of its existence by General Johnson
and the Administration, , . ; .
To enable th^ ipublic to do its part, the NI?A emblem kno^-n as the''3lue
9819
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Eagle" was designed, nrinted and sur)-olied to all signers of the PHA uiDon
nresentation of a signed certificate cf compliance with the Agreement.
Any person obtaining the 31\ie Eagle in the mrnner mentioned was permitted
to disT)lay the emblem so long as he continued to comply with the Agreement
and by so doing he indicated to the wiblic that he was coo-oerating with
the Administration in its effort to solve the problem of reemployment
and therefore merited su-oport of the -public for his business.
B. SUHRE!OEH OF THE BLUE EAGL5
By authority delegated to the Administrator by the President in
Execvitive Orders #6173, #6205 and #6337, General Johnson specified that
"when, in the judgment of the said Administrator or his duly authorized
representatives, any -oerson lias failed to comrjlj'- with said agreement or
code, or vrhen any -oerson lias imtiro-oerly obtained said emblem, such
person shall surrender said emblem on demand of the said Administrator
or his duly authorized representative, aid shall not thereafter display
or use the same without the written permission of the said Administrator.
Any person who violates any cf the foregoing rules and regulations may
be punished, as provided in Section 10 (?) of the TIRA., by a fine not
to exceed Five Ilundred Dollars ($500.00) or imprisonment not to exceed
six months, or both." (Rules and Regulations concerning Display of
I^IA. Emblem, October 17, 1G33) .
Reports from l-JRA field ai_^encies and complaints received by NRA
alleging non-compliance with the PRA, indicated that during the period
of the President's Reemployment Drive (August and September, 1933),
especially consumers and generally speaking employers themselves in most
instances were ardent in their desire to see that the Agreement was
observed; inquiry was made upon purchasing goods and if there was any
doubt as to whether the establisiiment was n-oerating under PRA provisions,
patronage was refused. The public considered violation of the Agreement a
crime and they felt that prompt, vigorous criminal action should be taken
against the offenders.
The belief that criminal action should and v;ould be taken against
violators of the PRA was later enhanced by a misleading statement re-
garding "Rules and Regulations Concerning Display of KRA emblem" incor-
porated in l-IRA release #1239, dated October 17, 1933, which said
"Violators of the PRA today face not only the loss of their Blue Eagles
but also, as a result of an Executive Order issued by President Roosevelt,
the same penalties - fines or imprisonment or both - provided by the WIRA
fjn^jviolators of permanent Codes of Fair Competition." In many cases the
press opposed to the Administration and in some cases those favoring the
Administration featured headlines inferring or stating that the Administra-
tion would subject PRA violators to fines and/or imprisonment penalties
of the HIRA. Tliis made it extremely "difficult for the Administration to
explain to complainants, the public and cooperating eimoloyers , tliat en-
forcement of the PRA rested solely upon removal of the Blue Eagle and
public opinion, and as early as the Fall' of 1933, public opinion in support
of the PRA began to diminish.
The inability of the NRA to handle promptly the great volume of
complaints alleging violations of the PRA because of the early centralized
authority for removing the Blue Eagle delegated to the Administrator and
9S19
-54-
his ^•athoriz'='d r'=r)r'=>S'=ntptiv=! th':! National Conrolisnc^ Board had a further
demo ra:li zing Influ^nc^ '^n ■ou'blic oiDinion, It is ouite •oossi'ble that
denentrallzation of this authority to Stpt« NEA Coyn-pliance Dir'^ctors
a.t an -^iarT i-^^r dpt^ might hav^ ma-t^irisiTy ascist^d in maintaining PulDlic
suDTsort of th*:; PRi.
C. TYPES OF VIGIATIOUS AITD DISPOSITIONS
1. Mnni/OT' 7AG^S AI-ID flAXIlRJH H0URS"(PAMGPAPHS 2, 3, 5, 6, PRA-).
(a) R'^stauranti •
(l) Ho-'irs "ork<=!d - 49 to 56 hours T)°r ^^e^k, male ■
and female.
54 hours .per week.
PRA. Maximum Hours aD^Dlicahle - Female 48, male
(2) Wages paid - meals and room on"'y (no cash) to
meals, room, laundry and $4o00 per week,
PRA Minimixm Wages arir^li-na'ble - 26 cents ■oer hour.
Permissible to deduct a maximum of $3.00 rer we^k for meals "orovided
such was the practice ririor to June 16, 1933,
(3) DisTDOsition!
Violations Rer,orted • — September 6, 19.'^3 Blue Eagle
ordered surrendered Decemher 1?, 1933.
(h) Baking Industry*
(l) Hours worked - up to 1? ho^^rs per day, 84 hours
per week.
hours per w^ek.
per hour.
PRA Maximum Hours applicable - 8 hours per day, 50
(2) Wages paid - ^16 to $?0 per week.
PRA MinimuD wag°s spplicahle - 30 cents to 40 cents
(3) Disposition:
Violations Reported — February 14, 1934,
respondent prosecuted February 26, 1934 under P^-nnsylvania State Labor
Law for violation of Child Labor Act. Blue Epgle ordered surrendered May
15, 1934,
2, COIIPENSATIOII FOR EMPLOYMENT (PARAGP^APH #7, PRA),
„„.^ (a) Baking Industry:
9810 : ■ ^
"55-
(1) Union contract in force called for a 4n-hour
work week. ti:r.e and a-half for overtime.
tfj^.Ttlll'^f " ''-''T^ \°^^" ^^^^ ^'"-^i- taking)
time and a- third for overtime (emergency).
lo^f ws"to"-:r"' '' '^^""^^^ ^"^^ -^^ f-- 48
^0 44 hours to mcre-ise wage rate on an hourly basis
(4) Interpretation No. 20 of Paragraph 47 V^R^ u^
gra,h 7 prevents the redaction o/o':* fl^^i^ Tn ^
(5) DispDsition:
unio"!""" '• "'^' =°™1''"' "loa by local lak.rs
re-omml"^! Il' M?' "™''°"' ^"^^ Complianco Board
awrdorea. ''" ''" — *-"= Blue .agle te ordered
about tho tinp +hi. ^ rignt. An effort was made
PRA was to apply rigidly in all cases, even in those
where the wag« rates were in the higher brackets Tf
Board had'°™°-°"f°"''"' =""' ''" '•""""^l ComplLnce
s^r-rL :? :r;."\iL^S?et: rp;i"^?,L\\:rs.:-
an applicable code had been approved? '^'''^*'°" ^"^^
... ... : . .. ., ■ - ... ...... ;-56-
CIUPTLH IV
..... . AIi;ilTISTBAII01".,0r TIL:; HRi:SLl;i.;i^T»S' 1035=11011.11111 AGffiESlIEiTT
I. TIIiAD(ciUiffiTLH3"CT'^AoEli;GT0i:,ij.' C) '
. -A' SLM 54GLE_DIXIlL0iI>- ^^^ (A-af-u;:t IC,' _10C>5 !to Octobpr 26, 1933)
, As .previouslu..nentiQned, .General Jclmsrn-.cn (>r abroit July 22, 1935
appointed C-neral Thomas S. Hajninond, Expca.tivGB.i rector,, President's Her-
emplojiiient Program to develop and promulgpte its ..olicies. General
Ham;nQnd,_ on .A\i^,-aBt 10,,.. 1933-, rnnounced that tlie desi.-^nation of Ms office
would "oe ■"BliiiQ ISafJe Division, .iTFA.". Confinain; verbal instructions
previously ./jiven, G-eneral IlaiTBuona, on Au nast 23, 1933 announced that the
newly' estalilished .Blue Eagle Division, NBA. was charged v/ith the adminis-
tration of KRA Bulletin #5, "The President's EeemployiTient Program",
dates July 20, 1953, in which was incoipoi.^atec't , -the, "'President' s Reemploy-
ment Agreement." (Also sec "Blue Lagle Division, 13EA" , Appendix"B", )
Prior to the CF.tahlishment of loca.l HHA compll^Jic'e Boards on or about
Septemoer 1, 1933, the efforts of the WRA. were directed to explaining
and indxiciag.. emplo.ycrs to s.ign- the.'PPA, and little- attention was paid
to. -.a.«niru. strati on. With- the .establis-hraent of the. Blue Eagle Division
NEA, a nuiTiber of sections Y/ere created for the purp-ose- of carrying out
preliminary administration functions.
1.; ..EXECUTIVE SECTIOII,', -•:'■
.The Exeeiiitive -Section, Blue Eagle Division, NSA Was created to
clear all .adininistrativ.e matters rei,.;arding (l) : decisions -of policy either
within the- division o^- froiii the PHAPolicy Boara, (2) refiuests for ex-
pen cdtxires of money, -(s) persoiiivel, (l-). contacts -with rtther governmental
department G, (.5). liaison contact v/ith the 26 District 'Offices of the
Department of C-omtacrce. -(-B.E.D.Liw: #l) ; -•■ . ::.":
•■2. "PJiCOVEHX BOARDS .SEGTIO-II ■ •
This Section was created to maintain contact with the field thru
state, and District. Recovery Bo'prds £uid--Co\incil.s and Drcal NRA Couimittees
(B.E.D.i.i. #1 and #1C0. • -■.■-:-■
■ , ;3» , COIIPLAIUTS- SECTION' ■ ■'■■'■■ '■ ' ■ "
To handle all complaints from the ficTd -as affecting rperption of tlie
PEA, incliidlng complaints relative to use of the Blue Eagle, a complaints
section was established in the Blue Eagle Divisicn. Complaints relative
to the right to produce or production of the insignia wei-e handled by the
Insignia Section (B.E.D.M. #1 and #10).
4. PEOEGAinZATIOF (September 30, 1933).
Pvjfsr.cint to 1\IEA Office Order f35, .3ept'^mber IC, 1933, the Blue Ep-ile
Division, IffiA, Ur. Frank Healy, Chief proceeded to consolidate and re-
organize the Division to accomoda.te itself to the second phase of the
Blue Ea^le Caiup.-iign. To effect this reor^;anization, all Sections were
abolished, effective September 50, 1953 and there remained only one mean
0819
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function of the Division - the administration of the PRA. thru Locrl ITHA
Cnniplirnce Boards, which incltided a supervision of State and District Bocros,
the creation of Local NEA Coinplirnce Bor-rds, the hondlin^ of recoiimendations
and reports on complaints a::d petitions coMn-- from Coumliance Boards and
the^mterioretation of the PflA and various substitiitions^hereunder
(B.E.D.I.I. -jl3). Also see "Blue Eacle Division, ¥..R.A. Hecr-anization •»
Appendx "C", ^' *
Althoxxsh all sections of the Blue Eagle Division, NFA v/ere abolished
en September 30, 1933. the oranch of the clvision handling PRA c.mplai-ts
was reierred to for convenience as the complaints section which was the
successor to the ori.-.inal complaints, section. In addition to haiia'in,-
complaints received direct from the complaiaantG, complaints referred^b-
the Wliite HotU'se, and complaints which accompanied questionnaires returi>-
ed to the Censiis Bureati; this Section handles PEA easels received from
L»cal HEA Coi,;pli2nce Boards, v.hich they had been luiable to adjust.
5. PEOCZDUKS
(a) Com-olaints IJot Considered by Locrl Compliance Boards.
^ Complaints received directly by the Blue Z^gle Division were either
referred to Local im. Compliance Boards for investi >o.tion and recoraaenoation
as to_ their Oasposition, or a letter was addressed to the complainaiit
advising that the allegations presented cdd not constitute a vialaticn .
in j.-ome cases the complainant was advised to secure additional evicence
to support his allegations of non-compliance and to refer the matter
to hi:: Loc:l KHA Compliance Board,
(h) C^2iIlIZlainls_ Considered by Local EEA Compliance Boa
rds.
investigated cases involving alleged nor^ compliance with the PEA
receivea from Local Compliance Boards were referred to trained analysts ,
for analyzing end further recorar::emied findings. In considering these
casesthe analyst was required to determine whether or not the "Local
to^iipliance Board had followed in detail the procedure for handlin- P^^
ccmplamts as outlined in IIEA Bulletin #5, and to detemine whether
or not in his opinion the allegations constituted a violation of the
t-xviU^ In some cases, because of lack of evidence, the cases were returned
to tne i.ocal Compliance Board or the complainant or respondent or both
wioh a request to supply additional pertinent information and data.
In analyzing PEA cases the analyst was required to fill out a detailed
complaint a-ialysis fomi in which was incoiporated pertinent information
aeemec necessary to establish a violation. These forms provided for t>.e
recomiaencation of the analyst as to the nature of action to be taJcen oy
tne ..aoional Compliance Board, Each case was considered by three analysts,
•1 _-/nicn tne writer '"as one, and then referred to the Division's Chief
Assistant Counsel, Chief Cg^^sel and the Chief of the Division before
presentation to the Ilational Compliance B-ard for final action.
6. iEEl.;i-/^TIOH (Cctober 26, 1933, Office Order #4C)
f^ -3?'' ^f ^^f-"" 26, 1933, the reorganized Blue Eagle Division, IJEA becaxie
tne Blue ^s^le Branch of tli£. Compliance Division established as of that da.te. ^.
9819
B.
COIvPLIAfCS DIVISIOII. HEA (October 26, 1933 to August 29, 1935).
As -oreviously mentioned tlieBlue 3-gle Division, ITRA, bec--me tne
Blue Er.gio Branch of the Compliance Eivision, KM established on October
26 1933. The Blue Eagle Branch, Com:)lianco Division continued to
--d^inister the PHA until November 24, 1933 at which time it was ajnalg?.-^
mated and consolidated' into the Labor, Trade Practice and Administra-
tive Branches of the Com-oliance Division -mrsuant to IIRA Office Order
#45. ,
Following the amalgamation and consolidation of the Blue Eagle
Br-nch, administration of the .PHA Y^as, handled by the (l) Labor Br-.nch,
cha.rged with handling con^pl^-ints of violation of PRA 1-bor provisions
-nd (2) Trade Practice Branch, charged with handling corai5laints of
violations of all provisions of the PHA other than those involving
labor provisions. .- ■'
On A-oril 12, 1934, the personnel -nd duties of t:ie Labor and Trade
Practice Branches were absorbed by the Analysis Branch, Compliance
Division established on that day by IJHA Office Order #85, and from
April 12, 193:4 to May 27, 1935, administr-.tion of the PHA was h-ndled
by the Analysis Branch, Compliance Division, 1TR.I, thro\-igh Local HRA
Compliance Boards and State KPA CoiiFili-nce Directors subject to approval
of the Compliance Council, IIHA and the Chief of the Compliance Division,
IIEA.
The procedure follov/cd, in handling alleged viol'tions of the
PEA, by successors to the Heorganized Blue Eagle Division, NHA was in
the main the same as that followed by the Blue Eagle Division.
C. MTIOML COLgLIAllCE EOAHD
With the establisliment of the H-tional Compli-.nce Bo-rd, IIHA on
October 26, 1933 (Office Order vH^O) , the first real efforts we.-e made
to enforce the PHA. As mentioned under "Enforcerrent of the PHA" in
Chapter I li, enforcement of the PHA rested solely upon public opinion
and' removal of the Blue Eagle insignia in cases vifhere violations of
the Agreement were established to ' the satisfaction of the NHA Adminis-
trator. In establisliing the llational Compliance Board, General Johnson •
stated that its duties were to "ondortake further attempts at adjust-
ments, recommended exceptions and remove the Blue Eagle in cases of
complaints referred to it by the National Compliance Director.
Upon refe'rence of cases. of alleged violations of the PHA to the
Nationa.l Coraplip.nce BQ"-rd by the National Conrpliance. Director after the
conrolaints had been analysed and digested by the Compliance Division,
the Board set a da.te for hearing and so notified the respondent advis-
ing that he would be given an opportunity to be heard in person or be
represented by counsel or both, although this wr:s not necessary. After
hearing the case the Board, in the event the members felt the data sub-
mitted warranted such action, r'^commended that the respondent make
certain adjustments and if such adjustments were not made within a
specified time, the respondent vfas ordered, 'by telegram over the Ad-
ministrator's sign-^-ture to surrender his insignia to the local post-
master. The local postmaster was also advised of the Board's action.
9819
-59-
hoT/ever he ^7'^.s not requested to deia^.nu or t'\ke r.ny "ction tov;-\rd ODtr.in-
ing the Blue 3o:i;;le. The r-.bove -irocedure in ^JLainisterins the PRA v/^.s
follo\7od hy the Advisory Council, Ccmpli/Mi.ce Division, the Compli-\nce
Cou:icil, IIHA r.nd the H;-e;ion'^.l Councils, successors to the ll'^.tion-^.l
Con5)li'".nce Bc-rd, except orders for reniovin.; th^ 31uo S'^.^'le in c-.ses
he-'.rd oy Re^ion'.l Councils, v.-jiich '.-ent out over the sign^.ture of the
Hegion'^.l Director. A-yoc^-ls -.s-^inst removal of the insignir^. were her.rd
by the IJEA Industri^Ll Appeals Bo-^rd.
D . ADJUSTI.ailT OF PM COi.PL/.IlTT-S JC'D P3ST0riATI01T 03? TH3 BLU3 aAGL3.
Restor?.tion jf the Blue Ba^'le insigiii-?. y.'o.s couti:i£ent upon ap-
plication by the respondent and, a satisfactory adjustment of all conrolaints.
Before a complaint vras considered adjusted or the Blue ^lagle was restored,
the respondent was required to fulfill the followir:.j requirements:
(1) Reinstate any or all er.flloyees di,scha.r;-,ed for registering
complaints.
(2) Ivialce full restitution of b?ck wages dr.e, calculated on the
basis of the correct wage specified in the PBA, in cases where a lower
wage had bee:: -oaid than that provided in the Agroeuent, If necessary,
the respondent was permitted to mahe such payments in installments pro-
vided he gave a promissory note or judg:nent note or posted other forms
of sec^ority. In cases where there was some question as to the ability
of the respondent to pay, the case was referred to the State Adjustment
Board for their co:isideratien with a view to compromisi:ag at a lower
figure in the event the employees would not obtain anything if such a
com:i:romise was not made. V/here it, was inroossible to secure evidence as
to the exact amount due, the credibility of the couTilainant ^nd respon-
dent were weighed. It was pointed out that any civil rights the employee
had regardin:: pay;iient of back wages were not prejudiced by the State
Adjustment Board's ap iroval of less than 100^^ restitution.
(3) As a rule the ITational Gomoliance Board required that at
least time and one-third be paid for all time \,-or::ed in excess of the
maxim-am hours specified in the PRA or ap-oroved substitution thereto
xmless a definite rate for such overtime was provided.
II. ?I3ID
A. LCCAL i.zBDIATIC'-T 30APJS
In a radio address, Augnist 23, 1933, General Joimson announced the
second phe.se of the President's HeerolojTnent Program which ho character-
ized in the following language, "The next effort will be to mop up the
abuses and all the energy that has been expended in the first month of
explanation will be turned on this second task of cleaning up chiselers."
The need for t^^is second plia.se had been driven home in ra3.ny ways - con-
sumers and emoioyers forr-'arded thousands of complaints to IIPA, charging
noncompliance on the part ox the P?A signers; telegrams and letters were
forwarded to iJRA by Local ^TRA Committees from all over the country re-
questing among other things, authority to (l) organize Arbitration Boards,
(2) act as they deemed advisable to enforce the ??A or (3) remove the
9819
-60-
Bl-UG Eagle in cases where the sicner h-^.d failed to comply, or was delay-
ing coiTP5li?xce, hut raeanwaile was displaying the. Blue Eagle.
On Septernher 2, 1933, General Ha.ramond announced tliat delihera.te
wilful "chiseling" would not he tolergted, that it was felt the tine
had come and it v/as planned to set up local Mediation Boards in each
commujiity in which there Y/as a Local ill^ Committee. It v/as at first
conteiirplated that all comolaints against consumers or employers vrould
he registered 7/ith Local Mediation Boards for the pnroos'e of inducing
conri'jliance hy education, conciliation and mediation as far as oossihle.
(B. E. Letter #6)4 The. life of Local Mediation Boards as stich v/as of
short duration, as the name was changed to Local NHA Corajpliance Boards
on Septernher 11, 1933.
B. LOCAL ITHA COMPLIAIICE BOAPuDS (September 11, 1933 to June 15, ;1934)
1. • OHIGIN
In a letter dated September 11, 1933, adressed to ITHA Local Committee
Chairmen, General Johnson stated "We must secure 100,j coinplianc'e v/ith
the PEA by all erar^loyers now under the Eagle. To accomplish this speedily
and effectively, you are hereby requested to establish in your community
an NEA Compliance Board."
•■■ 2. PURPOSE
The duties of Local '-TPvA Complia.nce Boards vera education, ' concilia-
tion and mediation in lia.ndling (a) coraiDlaints of noncompliance with the
PHA; (b) petitions for exceptions imder Paragra.ph •//•14, PRA (See "Excep-
tions to the PRA-Local IIRA Compliance Boards"); and (c) petitions for
permission to operate on the longer hour schedule of existing ■union
contracts, instead of the naxiimim hours of the PEA (See "Exceptions to
the PEA - Local ITPA Compliance Boards"). Local ITEA Compliance Boards
had no powers of enforcement except upon ex^Dress directions from VJash-
ington, they were local representatives of the ITEA and were not affilia-
ted with any other organization.
9819
"61-
3, ORGMIZATIOIT.
In cr,:5anizin£- a Local Ki^A Compliance Soard, the Local NRA Couir.iittee
Chairman was instnicted to:
(a) Convene iiTinedi-tely and act as chairman of a nominating committee
composed of individuals reprej;entin{: the interests of labor, trade, indus-
try and the consumer, for the purpose of naming the.nembers of the Coi>-
pliance Boards, To secxire the i^jroper representation the heads of the
following organisations were ap-iointed members of the nominating corni-nittee:.
Chamber of Cor.irr.erce, Retail Merchaiits Association, Manufacturers Assoc-
iation, some representative labor organisation, Federation of Women's
Clubs, and the local Bar Association,
(b; Upon convening the nominating committee, the Chairman advised
them that they had been called together for the sole Oxxty of naming the
6 members of the Loc^l fioapliance Board,
If it ^7as deemed advisable, and more expedient to form a couaity coii>-
pliance_ board, siich was permissible provided the consent and cooperation
was obtained of all the other towns in -the county v/hich had previously
been reqv-ested to form Ooi.ipliance Boards,
4. i5SPHSSEi'?rATI0H
(a) Employee in Industry- A tnaly representative employee in indus-
trial labor, if there was axi industry in the conmunity, elected f - r his
leadership, intelligence and standing in i. he community and among his
fellows.
(b) Lm.ployec in Retail or Y/holesale Trade - A truly representative
employee in retail or vdiolesale trade in the community,
(c) Smployer in Industry- A truly representative industrial
employer, if there was an industry in the community.
(d) Ei;:ployer in Retail or Wholesale Trade - A truly representative
employer in the retail or v/holesale trade in the comjnUnity, Both employer
members should have been men who had been leaders in the KRA movement.
(e;. Ccnsumer - A representa.tive of the consumers in the comnimity
prefera^bly a-woman v'ith no direct interests or connection with Trade
or Industry, other than those of a consiuner,
( f ; Legal - -^ lavc'-er in good standing v/ith the State Bar Association
and in the community, selected for his leadership in the profession,
5. PLP:.IAIIEi!T CIIAIK.iAlJ
As soon as the appointment of the Board was completed, the Legal
Member, as Chairman pro tem, was notified and instructed to call the fir'jt
meetirig of the Soared imraediately, for the purpose of naming a seventh
member 3,s permanent chairman. The.' permanent cliairman v/as required to ha.ve
administrative and organizing ability aiid mature judginent, he should enjoy
9819
"62-
the respect of the eritire coi.munity, and was required to be free from any
connection - pclitical, financial, or otherwise ■-.cAvhich would cast an: doubt
on impartiality of his decision. It was further suggested that retired
leaders of coi.iiaercial or professional life be considered for this nomin-
ation, riTanediately upon completion of the Board organization and appoint-
ment of the permanent Chairman, he was instructed to so notify the Lxecutive
Section, Blue Eagel Division, NEA to enable thera to fu.rnish the Board
with detailed instructions with regard to procedure and confirmation
or modification of the nominations, ^he: term of appointment was originally
for 45 days. Approximately 4100 Local Compliance Boards were organized
and functioned,
6. IIATUEE.
There was no provision made for allowance of s£.5.aries or 3xpenses
to Local Coinpliance Boards by the Federal Government other than the
extension of the franlcing privilege for all official comiiunicr tions.
On October 21, 1933, General Johnson advised that a.rrangements had been
made with the Federal Smployment Relief Administration so that relief
workers cou.ld be supplied to LocaJ- .Compliance Boards upon request, 'These
workers were to be paid from the emergency relief fund (G, B. Letter #8).
Because all State a.-d Local CWA projects expired on March 31, 193^'-, the
use of relief workers was discontinued. In the main Local IIRA Compliance
Boards f Uiicti one d without Fifederal aid, and althou^gh they did a remarkable
job as a whole, better results might have been obtained if they had been
properly staffed and allowances made for salaries and expenses.
7o raCQIlDUBl. FOE I-IA^IDLIwG- GOi.iPLAilTTS OF KOUCOilPLIMGE WITH TIL^ PHA
Local KRA Compliance Boards were not councils of inqtiisition or
compulsion. Their function was primarily to be of service to all em-
ployers, who liad signed tlie PEA, by keeping them informed of the meaning
of the Agreement and the individxial employer's obligations under it.
As a guide to be used by all Local Compliance Boards in handling coraplain+.Q
alleging violations of the PSA, General Johnson and the Special Inw.s-^
trial Recovery Board issued the following regulations, which were publish-
ed ir. IIRA Eu.lletin f>5, "Regulations on Procedure for Local NRA Compliance
Boards", dated September 12, 1933:
"(a) Rgceipt of Gom')laints.
(1) All complaints J.aist be presented to the local ICIA. Compliance
Board (hereinafter called the 'Board") in the Employer's community. All
complaints should be in writing and signed by the person making the
complaint (hereinafter called the 'complainant').
(2) The legal member of the Board should be designated as secretary
to the Board and should be charged with the duty of receiving and exaJH-
inging all complaints. He shou.ld reject all those in which the f^-cts. aa
stated, if true, do not constitute noncompliance with the President's^
Agreement, If he is in doubt as to whether or not the facts stated, if
true, do constitute noncompliance, ho should request a ruling from HRA
through the Secretary cT the District Recovery Board at the District Office
on the stated facts,
9819
-63-
(b) Notice to Employer of Complaint.
(1) The Employer should be notified of the complaint. It is
very important that this notice be mnde in the proper manner. In many
instpnces, mere notice of the fact that a complrint has been filed will
be sufficient to induce immediate compliance. Tae whole tone of any
notification, whether written, telephonic, or personal, should be that
of assuming that the Employer is complying and that the complaint is
due to some misunder-standiiag, "'hich the Employer can clear up by explain-
ing the situation to a representative of the Board. The employer should
not be given the name of the compl;inant unless the Employer requests
it and the cOTiplainant a;>:rees.
(2) In no event should the fact that a complaint has been
filed against an Employer be made public.
(c) Education.
(1) Since in the notice to the Employer the offer is made to
explain the President's Agreement to him, this explanation should be
made at the time of giving the notice, if telephonic or personal, or,
if the notice was written, by personal interview. These interviews
should not be before the whole Board. The legal mem.ber or other member
or representative of the Board should contact the Employer, informally,
for the purpose of clearing up any misunderstanding in the Employer's'
mind ss to the application of the President ' s Agreement to him.
(2) If the vblufne of- cases before the Board is so great that
the members of the Board are hot able to conduct these personal inter-
views themselves or rhere it is impossible for it to handle all cases
with necessary dispatch, it may be necessary for the Board to expand.
Much of the volume of work on complaints can be handled by appointing
representatives of the Board to contact the Employer before the hearing
in an effort to induce voluntary compliance by explanation and concilia-
tion. These representatives should be appointed oy a majority of the
Board and operate under the direction of the legal member. They should
be selected for their, tact and knowledge of the FHA. Persons with some
legal training should be conoidered for such appointments. In no case
may these representatives be used as investigating agents. Their function
should be to help the Employer, to londerstand his obligations, not to
cross-question nor intimidate himi.
If the number of cases which have to be heard by the
Board, sitting as a .single body, becomes too great, the Board may appoint
seven more mem.bers, representing the same interests and filling the same
requirements as me.mb.ers of the original Board. In great cities it may
be necessary 'to appoint several of 'these boards. They should operate' as
departments of the original Board and should be responsible to it so
that there is uniformity of treatment.
In any case where tne Board is expanded by the appoint-
m.ent of additional members (as distinguished from representatives) such
appointm.ents should be reported to NBA in Washington for confirmation or
9819
-64-
modification. A duplicate of this report should he mailed to the Secre-
tary of the District Recovery Board at the District Office.
(3) The Board member or representative should mnlce every^
effort to induce compliance hy conciliation .and explanation. The B^loyer
should be furnished with copies of these regulations and othe^r ,o,ff isi^l
explanatory releases of ITHA on the President's Agreement .' If ^it ^, appears
that the reason for noncompliance is unavoidable hardship, the Employer s
Remedy of Exceptions under paragraph (14) of the President,' s 'Agreemen^
should be explained to him. , . > . ,•
(4) If an understanding cannot be reached by this method, the
Employer should be given an opyortunity to state his case before the
entire Board.
(5) If an Employer claims that he has a stay of certain pro-
visions because of the fact that he has had a petition approved by a trade
association, chamber of commerce, or other organization, the Board should
check this by contacting the organization. If the organization still has
the petition it should be turned over to the Board. The Boar^. will then
consider it as an original petition. In some cases the organization may
ha.ve given the Employer to understand that the petition had t)en finally
approved. There has never been any authority from HRA for such final
approval. However, if it vould be a serious injustice to the Employer to
reverse this unauthorized apjroval, much weight should be given to this
fact. If the petition has already been forwarded to NRA in Washington
this fact should be im-^ediately communicated to the Compliance Board
Section, Blue Eagel Division, NRA, Washington, D. C. Pending a report
from Washington the petitioner may continue to operate under the provis-
ional stay.
( d) Notice of Opi-.-ortunity to Appear Before the Board .
Notice of opportunity to appear before the Board and state his
case shall be mailed to the Employer in a franked envelope. In no event
shall this notice be made public unless the Employer chooses to do so
himself. A copy of these regulations and other "aterial mentioned in
paragraph 4 (c) should be attached to this notice, if the employer has
not already been furnished such material.
(e) Hearing.
( 1) The employer may nOt be forced to aprear before the Board.
The Board should Yeev in mind at all/times that he is there voluntarily and
should govern its attitude toward him accordingly. The proceeding must
not tr-ke on the character of litigation or of inquisition.
(2) Although the Employer may be represented by counsel, if he
so desires, there is no necessity for this- The Employer may not be
forced to answer questions. In fact, it should not be found -ecessary
to ask any questions except as an aid to the Employer in maki g his
voluntary statement. No questions should be asked except those strictly
9819
-65-
necessr.ry to determine whether or not the Employer is complying. This
hearing should not be taken advantage of as an opportunity to pry into
a man's business. The Board has no power to compel the attendance or
exam.ination of witnesses, or to compel a submission of books or other
papers to the Board. If the Employer takes the position of 'standing
on his constitutional rights' or 'refusing to answer questions because
they might tend to incriminate him,' it should be explained to him by
the legal member that the President's Reemployment Agreement is not a
statute to be enforced by law but a voluntary individual covenant.
It should be r.ssujned that if the Employer is acting within
the spirit of the Agreement, he will be ready and willing to come for-
ward with a frank statement of his position in order to clear up any
misunderstanding. Ho',«-ever, it should be explained further, that a
refusal to answer a question will be considered contrary to the spirit
of the Agreement if the answer to the question would determine whether
or not the Employer w^s complying. Such a refusal should be noted by
the Board in making its report to IIPJI.
(f) Decision by the Board of Action to be Taken.
(1) All the decisions of the Board should be arrived at by
majority vote. All members of the Board should be given an opportunity
to approve or disapprove all decisions (whether on complaints, exceptions,
or union contracts) . All reports should bear the signature of all mem-
bers, who should indicate thereon their approval or disapproval.
(2) The facts, as found, may vary from the facts as stated
in the original complaint. If this is the case and there has been no
decision by NRA on the same facts, a ruling should be obtained through
the Secretary of the District Recovery Board at the District Office.
On this ruling the Board should base its decision.
(3) If the Board decides that the Employer has been complying
with the Agreement, the case should be dropped, and the Employer should
be furnished with a Letter of Compliance, which he may display near his
N?A. insignia.
(4) If tne Board decides that the Employer has not been com-
plying with the President's Agreement, the Employer should be notified
of the facts which the Board has decided constitutes noncompliance. He
should then be given an opport'onity to state that he will rectify the
conditions which constituted noncompliance in his case imm.ediately, and
that he will report to the Board wnen he has complied. If after such a
report the Board is satisfied that the Employer is complying, he should
be given a Letter of Compliance.
If the Employer refuses to comply after being given an
opTDortunity to rectify the conditions which constituted noncompliance
in his case he should be told that the Board is forced to report the
facts of his case to ITRA and to recommiend that the proper Federal author-
ity be directed to rem.ove his Blue Eagle.
9619,
a second com
-66-
If after an Employer has received a Letter of Compliance.,^
mlaint is filed on the same grounds of noncompliarce as tne • •
first; and the Board, after a hearing finds that the ^-P^^f ^^.^^ .^/^"^
willfully not complying the Board snould send its recommendation to re-
move tne' Blue Eagle to N5A without giving the Employer anotner cnance to
comply and report.
(5) The Employer should be given the opportunity to s^^i*. ,
a written statement of his position to the Board, df he so desires. ■ ThiB
statement must accompany the Board's report to WA- ■
(6) If a -bona fide complaint has been filed and t'.e Employer
notified of this fact, hut the Employer refuses- .o see the ^^^''^^/'^f ^^
or representative, or to make a statement to the Boar., the Board should
report these facts to NRA With the recommendation- of tne Boftrd. _^___^
(g) Reports. Hecommendat inn ^, and Records. _^
(1) ■ All reports for information and all reports ahd:recDnAen-
datious with regard to complaints, should he mailed to the Secretary 6f
the District Recovery Board at the District Office. -■ ^
(2) The report should include: the original complaint; a
signed certificate by the legal member, or other appropriate ^^^^^^^^'^^
representative that, notice of complaint was given, the -Pl°y- the ^em-
ployer had his obligations explained to him and was supplied with these
reflations and other explanatory material, the employer was given a
noSce of op^rtunityto be heard; 'a summary of the Employer s s atement
To the Board! if he made one; which should be signed by the ega -mb-
of the Board, and by. the Employer, if he is willing; if tne ^'^Pl^f ^^J
cline^ to make anv statement or refused to sign any statement made such
, ficts should be'oted; and any additional facts which the Board consider:
to be the point . . •
(3) The Board should include a recomjnendation of the action
to be taken in each case in which a majority has ^-?'^'\l''fJlll'J'''
been noncompliance. It snould be signed by all members of the Board .
voting in the majority. , ' ,
In addition to the m^ajority reccmmendation. the dissent-
ing minority should submit a signed recomrT,endation. together with a
statement of the reasons for their dissent.
(4) In addition to tne reports submitted in each individual
case of noncompliance. Progress Reports will be requested from time to
time by the Secretarv of the District Recovery Board. For this reason
th^Board .horidkeei a record of. all complaints, and the disposition
of each. . :
In all cases where a hearing has been had, and a decision of
compliance -made, a record should be kept of the Employer's statement,
and the reasons why. a finding of compliance was made.
9819
-67-
In all cases where a finding of nonconplipnce was made, but
the Employer agreed to comply irr.:^ediately, a record should be kept, so
that if the Employer does not comply, or fnils to coinply in the future,
his previous record will be available.
(h) ?iles.
The files of the Board on coTiplaints should not be open to
the public.
8. DURATION
-•although the ori^rinal term of appointment of members of Local
Compliance Boards were for a period of 45 days, they were requested to
continue until further notice.
According to Executive Order 7f6433-A, creating the National
Em.ergency Council, and as amended by Executive Order rf6512, dated
December 16, 1933, all NRA volunteer field agencies were to be abolished,
effective January 16, 1934. Because .it was desirable and necessary to
defer the abolition of such volunteer agencies at th.nt time, The President
on January 16, 1934 ordered that the effective date for abolition of
volunteer field agencies be, deferred, and that they should continue to
function until they are abolished by the Executive Director, N.E.C.
(Executive Order rf656l) .
Upon authorization by the Executive Director, NEC,(*) General
Johnson, on June 15, 1934, abolished the Local NRA Compliance Boards,
and their functions and duties were performed by State NRA Compliance
Directors.
C. STATE NRA CO^.PLIAI.'CE DI^CTQR.
On January 12, 1934 the National Emergency Council, -created "
on November 17, 1933 (Executive Order rf6433-A) to coordinate the functions
of the various emergency agencies, nnnounced the names of the State
Directors responsible for NRA Code Compliance within their respective
States. An office was established, under the supervision of the NEC
State Director in each State, which performed along State lines, the
same functions as were performed by District Compliance Directors
(formerly managers,- District Offices, Department of Commerce) appointed
pS such by 3-eneral Johnson on October 19, 1933.
The -.70 rk of State Directors of tne NEC also later called
State NRA Compliance Directors included liaison work with the Local NRA
Compliance Boards in each State. The District CoT/pliance Directors
were appointed Executive Assistants to the State Directors and in some
c§ses they were later appointed State FRa Compliance Directors.
V?ith the abolishment of Local NRA Compliance Boards on June
15, 1934 the State NRA Compli;-.nce Directors were made responsible for
(*) Information received from General Council to the Executive Direc-
tor, NEC.
9819
-68-
the Administration of the PRA. Complaints arising under the FHA were
> -,3i,:ri in the s?ime manner as those arising under approved codes. Petit-
ions for exceptions from PRA pr:;>visions. were, in most cases submitted
first to the proper Local Adjustment Board for their recommendations,
although this was not necessary, however, the excepted provisions did
not become effective until the Local Adjustment Board' s recommendations
were approved by the State Director. As in the case of Local Compliance
Boards, final decision on all petitions for exception from PRA provisions
rested with NRA in Washington, and all such petitions were to be submitted
to Washington with the recommendations of the Local Adjustment Board if
any and the State Director.
In some cases PRA cases were heard by the State or Local Adjustment
Boards or both before being referred to Washington for final action, al-
though this procedure was not required.
Violators of the PRA, were subject only to the penalty of removal
of tlffi Blue Eagle by the National Compliance Board and its successors
the Advisory Council, Compliance Division, NRA; the Compliance Council,
NRA and later the Regional Councils. State Directors were never author-
ized to remove Blue Eagles for PRA violations, nor were they authorized
to refer PRA cases to U. S. District Attorneys for prosecution.
D. REG-IONAL ADMINISTRATION
1. ORIGIN.
In a memorandum dated December 8, 1934, Mr. Sol A. Rosen-
blatt, Director of Compliance and Enforcement authorized the Chief of the
Compliance Division (i'r. L. J. Martin), in order to increase the effect-
iveness of Compliance Adminisc.ratioa and Enforcement, to take all steps
necessary to establish and administer a system of Regional Administration
along certain lines, subject to l^r. Rosenblatt's general supervision and
direction. This proved to be necessary as the two Compliance Councils
were unable to handle the large volume of PRa and code cases that had
accumulated.
2. REGIONS
By January 1, 1935 or shortly thereafter, the Chief of
the Com.pliance Division pursuant to authority vested in him by the Dir-
ector of Compliance and Enforcement, divided the United States into 9
regions as follows, each Region headed by a Regional Director appointed
by Mr. Rosenblatt, but subject to direct supervision of the Chief of
the Compliance Division.
I
9819
-69-
Hegion Regional Director States
ifl fv'erton L. Emerson L'ass. , fee., R.H. , R.I., Vt., Conn.,
Boston, Mass.
jf2 Anna Rosenberg, Hew York, N.Y, Kev; York and New Jersey
f3 G. R. Parker, Washington, D.C. Cel., D.C. , I'.A., Fa.,, N.C., Va.
r4 W, L. K'itchell, Atlanta, Ga ; Ala., Fla., Ga . , Miss., Tenn., La.,
S. C.
f5 Benedict Crowell, Cleveland, 0. Ky., iviich., Ohio., W. Va.
ff6 C. F. Riimely, Chica^^'o, 111. 111., Ind., Ko . , Wise.
#7 A. F. Cook, Omaha, Neb.- Colo., la.. Neb., N.D., S.D., Minn.,
Wyo . , Kan.
r8 Ernest L. Tutt, Dallas, Tex. Ark., N.M. , Okla., Tex.
#9 Donald Renshaw, San Francisco, Calif., Ariz., Ida., Mont., Nev . ,
Calif. Oreg. , Vv'ash., Utah.
3. FUNCTIONS AI-ID POWERS OF REGIONAL DIRECTORS
The functions and powers of the Regional Directors were:
(a) To direct the activities of NRA with regard to compliance
administration and to cooperate with the Litigation Division in its
activities .
(b) To direct the activities of the. State NRA Compliance
Directors in their Region with authority (in addition to the other powers
herein conferred) to exercise any of the powers that have heretofore been
conferred upon State Directors.
(c) To withdraw and restore the right to display the Blue Eagle,
after consideration of the recommendations of their Regional Compliance
Council .
(d) To refer cases of noncompliance through the member of the
Litigation Division assigned to their office to the proper United States
Attorney, with the request that civil or criminal proceedings, or both,
be instituted pursuant to Section 3(c) and 3(f) of the NIRA. This did
not deprive State Directors of the authority heretofore conferred upon
them in this regard. (Note: This did not apply to the FRA.)
4. REGIONAL COi:PLlAi:CE COUNCILS.
nine regions to hear ana* conbio.
°'p'^al Comrliance Council was established in each of the
.oc-oR of alleged violations of approved
codes and the PRA. Regional Councils were Organized along the same line
as the Compliance Council, MA, each council consisted of a l»"t>^- represen-
tative, a representative of industry and an i.inporti 0.1 cnairman.
9813
-70-
Sutsequent to the establishment of T^egional Councils, the State Compli-
ance Directors referred all cases alleging violations cf the PRA which
they were .unable to adjust, to the proper Regional Director and Regional
Council for final disposition.
Although' the Regional Director upon recommendation of the Regional
.Compliance Council had authority to withdraw and restore the right to
display the Blue Eagle, neither the Regional Director nor the Regional
Compliance Council except Region -ffS were authorized to interpret the
PRA or consider' excfeJ)'tions to the Agreement authorized under Paragraph
13. .Such matters were referred, for final disposition, to ^ the Compliance
Division, NRA and the members of the Compliance Council, Region tf3 in
Washington. This was necessary to maintain' uniformity of policy. All
PRA cases which had been previously handled by the Compliance Council,
NRA in Washington were referred to Region rf=3 Compliance Council; the
successor to the Compliance Council, NRA; for final disposition or
restoration of the Blue Eagle in cases where the respondent, had been
ordered to surrender the "insignia.
9819
CHAPTER V
RESULTS AND ACCOJ.OPLISHMEKTS
I. SI^KATCRIES TO TKs: PRa
According to the final renort (week ending Auril 28, 1934)
received from KRA Field Offices 2, 317, 838 Afi;reeraents were siie;ned,
affecting 14,762,029 employees. According to General Johnson,
96^^- of Coinerce and Industry were ^brought voluntary under the NIRA
by the PRA. This does not necessarily mean that 2,317,838 emiDloyers
signed the Agreement as in some instance?. tliR PRA was signed by
Branch Managers for their resiDective branches. From the same
source it was rerorted that 2,261,766 Certificates of ComiDliance
with the PRA were signed. Subsequent to Arril 28, 1934, there were
very few if any additional signatories to the PRA..
II, EMPLOYMiaiT AND PAYROLLS
A census of all employers taken by the Statistics Section of
the Research and Planning Division, NRA, during the latter -oart of
1933, revealed that eraDloyment in the United States had increased
from 10,868,004 in June, 1933, to 12,564,344 in October 1933,. or
15,6"^-; while weekly iDayrolls had increased from te38 ,458,411,00
in June, 1933 to *282, 613, 470,00 in October, or an increase of
18.5?? during the same period the 'weekly income per worker increased
from $21,94 to "^22. 49 (*). It will be noted that the data has been
tabulated by States. The Statistics Section, NRA, is now engaged
in making further checks on the above data and tabulating the data
by industries, and it is planned to incorijorate comrlete data
broken down by States and Industries in the final report.
In the "NRA-PRA Census" mentioned above, an attempt was made
to obtain re-oorts from all cmriloyers, some 2,500,000 card Question-
naires were ^nailed, a-c-oroximately 900,000 or 36"^ were returned,
III, COlvIPLIAlICE .
The Field Section, I'^RA, reports that apDrozimately 600 cases
on non-compliance witlithc PRA were docketed in IIRA, A total of
184 employers operating- under the PRA were ordered to surrender
their Blue Eagle insignia. Upon' application by employers who were
ordered to surrender the Blue Eagle and after the complaints of
non-compliance with the PRA had been satisfactorily adjusted,
l^RA restored the right to display the insignia to 32 employers.
(*) The results of the above "NRA-PHA Census" have been incorporated
in "PRA Census-Tabulation by States, Employment and Pa-rrolls —
June, October, 1933," on pat^e 224.
9819
-73-
CHAPTLM VI
p :oi;l:oI:s
I. POLICirS AUD IiITEIiPZ:TATI':rS
A. ":delai" II" irvzLOPi .1;:':: .a:'d f:-^:.uioatio:"
As -oreviousl;- rjentionec' the Acijiinistrr.ti'^n' '-as iqrcec. to do
soj-'.ething irinediatel^^ to avert a ne- cnllapse in Tr-.der, r.jic, Indus-
tiy dUrins the S'onner of ^ 1933. Tae President's ?.eeinl03T.ient Pro^ran
£?jid the P3A '-ere launched one nonth after the arorovpl o2 the "I?i.,
"before -ojiiple tine had oeen afforded to detemine in detail proper
policies. It should also "oe pointed out in this connection that as
the Administration had no criterion, to folio-, the T?A "as necessar-
ily an exp'erinent, ^-hidi resulted in rnanj^ conflict?, revisionr. ^id
anTDigultj- in policies and inter^p-etations. It ^mp ph3'-sicall^- ii-
poesihle^for the PHA Policy Board as a I-o/.rc" to act on all inteirrce-
tations reouired to ; nswer the .thousands of que-tions that arose in-
nediately aater the launching of the canpaign; therefore, nany "^ere
made "oy the Coujicil to the Board end hy the Chief and staff of the
Interpretation Section, Blue I.^i^le Division, I'PA.
B." PEA?- TILIT, IT ms LIPOSSIBLB TO^ CO. .PLY. AID 3?AY ir "::USTf:sS
.. Even thoijufdi Paragraph #1-1:,, T?A provided for .relief i'n case-.
of individual grea.t and unavoidahle hardsliip, "ipjiy employers at first
• hesitated 'to sign the Agree^.ent-, oecause.of fear th:,t they, could
. not com-oly, or he cause they did not understaricl just '.-ha.t --as e:^-
pected of then regarding -c^ges riid hours. This, prohlen -7as solved
through education.
C. EEA2 TKiT TIIE PISSIBEI'V' ..ICHT E:J]-tCISE THE FQ'-EB BBlSavTEB
UIDEP oEGTIOn 10 (h) IIIPuA
Early Bcoort received by fPA indicated that many employers
were hesitating to sign the PBA because of fear that, under Section
10 (h)-, IHIIA, the President might e:;ercise his povfer to ccjicel or
r.iodify any order, approval license, iHile or regulation issued and
. , thereby change the terns of the .i.gr8enent.
said:
In ans'-er to this -jjroblen, 3-enercl Johnson, on Aujgust 5, 1933,
"In the first place I question the validity of this intei^
pretation of the IT. I. r\ A. The right to cancel or
modify his ora action doeV not imply anjr :.:rant of oc^er
to the President to change the obligation entered into
by a person v.'ho has signed an agreement '-dth th^ Pre-
sident. Certainl:^ it is unthinkable that the President
'-ould ask employers to sign agreements reserving to
himself the -.wer to re"rits the agreement ajid then
hold the other party bound by rji obligation he never
assumed. Indeed it is surprising to think" that ?ji3rone
sliould imoute rny such intention to the Precic.ent".
D. rAlLU3E or SUSSTITUTIOIIS TO THE PHA. TO DErH'E liSJSSl^SHIP ATI)
"...PLOYLZS
E:;cept in c fe'-' inntiinces the Substitutions to the PBA apr)roved
for various trai:"es rno. indtistries failed to define the nein'bershi-i
of oji indurtrj'' and to claGsify r.uuorous enT)lo3''neg. ^\xl excellent
exanple of this -.v.-oole-; -^111 be fovLnd in the cane of the Tovrea
Pf.chin:; Coupnny, involvin^^■; their sle'o^shter house near Phosni::,
Arizon",, Adjacent to its slaughter house, the a.'Toellant maintained
concentration corrals into "hich cattle for slau:^hter -'ere conce'i-
trated rfter the;' ha.d l:een fattened said conditionod. In addition
to the concentration corrals, tl'.e ap"iellcjit operated feed lots rrhere
cattle arriving frori tiie ranches i-fe re l:ept fron three to six nonth?.,
vntil the;- '-ere in proper condition for slau^hterin ;. Three of
thece feed lots -ere located frov.i' five to 70 niles fron the slau^iter
house, the lourth --as pdjocent.
The diities of the feeding lot employees consisted solely'" in
feeding and caring for the cattle, none performed duties in the
slaxi_,hterhouse, packing plant or in concentration corrals. The
appellant contended that f^uch er^TOloyees sho\ild he classified as
agric\iJLtural employees, vjad. therefore not sr.bjcct to the 'orovisions
of the PHA.
On July 23, 1954, the Compliance Council, I'.TA voted unanimously
that employees in feed lots adjsxent to pa-ching plants he classified
r..s industrial employees, and that as such, the PrlA wage aind hour
provisions vould apply. Subsequently the Tovrea Packing Company
appealed to the TBA Industrial Appeals Board, the above decision of
the Compliance Cojjicil IIEA P-nd its subsequent modif ics,tion of Pob-
ruary 18, 1935, malting it retroactive to July 23, 1934. On April
12, 1935, the illlA Industrial Appeals Board recom:iended that the
niling of the Compliance Co-oncil -..-hich classified the AppellaJit's
T70rkers in its concentration and feeding lots in Phoeni::, Arizona,
e.s industrial workers be modified ao as to 'classify the rorkers in
the feeding lot as agricultural enplo;''or3s r^nd, therefore, relieve
the appellant of the obligation to ^Gn"oly -.-ith the provisions of
the PH/. in reg-ard to its enplo-ees rit this feeding lot. Before final
action ^^as teJ:en on the recor.--;enda„tion of the Industrial Appeals
T'orrd the Suprem.e Court rendered its decision on l?v4. ond no further
action ^cs talien on this case.
I. r:iLj AGZITCIIS
As 22revio-asly ijointed out, the Hecover;'' Boards (State and Dis-
trict) and the Local Compliance Boards operated on a voluntarjr baris,
generally spealring no Federal or local funds '-'ere made available for
reimbursing the members rjid the personnel ov their offices. Althou;'ih
in the main, the LocpJ. Compliar^ce Boards did a remarkable job, it is
reasonable to suppo:=e that better results "-ould hr.ve been accom-olished
if provisions had been made by the 2-ovorri.ment to enle,rge their staffs
rjid at least reimburse their enplo;"ee^. In some cases the personnel
of the Local Con.pliaiice T o-.:.rds '.rere not jDroperl;- selected and given
9819
•-74-
cmpl e ■ t rain in.'^,
r. PirncuLTY ai:d pailuhi: o:: ?illd .a^itciss to z-?a::lisi^ ALLrcrp
VIOLATIOITS
In sorie crses it 't.o prtac';icaH2'" irroossible to establish al-
leged viol.'^.tions because the conplainant d refused to pemit the use
of their nejnos throuf^h lerr of losin;.: their jobs. r::ec"ative Order
^^5711, V.p,-f 15, 1934, oxithorizin;; the a^D'olic-.tioh oi Tines an.d/or
inprioOiiraent prescribed in Sectl-ai 10 (a), 7l2k, to er.iilojrers sub-
ject to a code '-.ho disnisoed o:" deuoted airy eriiployee i^or nahinj a
coaplaint or ^Ivin^- evidence vith respect to an:;' alleged violation
did not ap::>l;' to euployees operating- imder the P3A by the national
Co-;pliance 3o?,rd and it:- s^iccessors and they required that any
er.plo3''ee disnis^ed or den.ot'::. i^'or re^jort^ng alleged- violations n'ast
be reinstated before any case -Tould 'o^:: considered adjusted.
iicny cases -ere referred to 'Jashinjtcn for c.ction 'Thich had
not been properly considsred by the Local uonpliance Boards as re-
quired in ITRA Bulletin ^5, and in numerotis instpnces the alle;2sd
violations rrere not established,
G. ' CErT5AlIZATI01T ¥S SECEiTTHALIZATIOI- OF SEFOHCBnEIIT
Until the estc.blishi.ient of Regional Adr:inistration in January'"
19S5, all YRh. Eield Agencies, as far as the FRii -jas concerned, op-
erated in on Stdvisory ca'nacitj,'- only. Therefore, all cases of rlle^^ed
PPA cares '■"ere required to be fori7arded to the ComplisJice Division,
IIRA., 'I'cshinj'jton, for final action ond- renoval of the insignia, when-
ever iTarranted. Tliis policy created conriderable dela,y actin', oi
the cases and undoubtedl;' had considerable bearing on non-coripliance,
li. PUBLIC QPIl'IOiJ SOLE BASIS 01 EEEOItCEiinTT
u£ji3' people feel that Public o-oinion TTa,s not suj:ficient to en-
force the PHil. The writer is of the opinion that "Riblic Oijinion"
is sufficient provided the proyrom is not burdened -'ith corralicated,
anbiguous, ra'altitudinous and conflicting r^olinys and inter;jretations,
?nd provided a,dequste nachiner^' is set tip to educate, adjninister and
act iororaptly on alleged violations.
S819
"75-
CHAPTER VII
CONCLUSIONS AND ?ECO!v:,IENDATIONS
I. THE PRESIDENT'S RESMPLOYIvffiNT AGREEMENT
It is doubtful. whether any other plan having the same ohjectives
as these of the PRA would have hecn laore effective. The Agreement un-
doubtedly shortened the time required to bring members of trades and
industries under codes cf fair competition by indirectly persuading them
to submit codes for approval. It was important in furthering the policy
adopted under the Act rf preventing the enroloyment of children. It
increased employment through the shortening of hours and this increase
in employment was not effected inmost instances at the expense of
wages. In fact, the statistics gathered on the results of the Agreement
indicate not only tliat totnl weekly payrolls were increased but that
generally there was ah increase in the weekly earnings of the workeir.
Incidentally, the foregoing tended to eaualize competition between
interstate and intrastate commerce and allayed the development of com-
petitive ineaualities between codified and uncodified industries by .
establishing a rule or standard for labor' conditions in all trades and
industries in all Irrealities at the same time. While this standard was
affected by the granting of substitutions for provisions of the Agreement,
nevertheless, there? w?s undoubtedly an equalizing of conditions as to
hours and wages generally.
The Agreement also prepared enterprises for codes, revealed some
'>f the special problems of trades and industries and helped, at least
for a time, in maintaining public opinion favorable to the Administra-
tion's reeraplsyraent drive. In short, it more than fulfilled the
Administration's expectations.
II. PROLiULGATIONS, POLICIES, ADMINISTRATION AW ENEORCEIffiNT
Discounting the" declared National emergency and need for imm.ediate
action, experience has indicated that haste should be avoided in launching
such a plan as the President's Reemployment Agreement. Wlierever possible
the wording of such agreements should be simplified and the statements be
specific rather than general and thus reduce to a minimum the necessity
for making interpreta.tions and explanations.
Before launching the plan, policies should be clearlj'' established
and defined; adequate machinery should be set up to educate those ex-
pected to enter agreements as to what is expected cf them and to ad-
minis'oer and secure compliance with the agreements.
In the light of NRA experience the use of insignia available for
display by these who croperate seems effective in aiding in the attain-
ment of objectives as long as public opinion remains actively favorable,
but it must bo recognized thiat the boycottin-;; aspect of the use of
insignia presents important Questions of policy.
The advisability of using voluntary organizations for administration
and for securing compliance is questionable because under such cir-
cumstances, the agencies are apt to be understaffed and full time cannot
be devoted to the work. Any personnel engaged in such work should have
adequate training.
9819
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APPEivlDIX I
FURTHER RESEARCH
Due to limitations of time in the oeveloTjment fif this study it
hs.s not been found possible to give adeauate attention to all asDects
of a subject as broad in scone as was the President's Reenroloyment
Agreement. There is set forth below a list of siibjects suggested
for further research. Wliile some of the^n have been dealt with in
this reTJort to the extent that circumstances permitted , the treat-
ment has not been as thorough as other?'ise might have been possible.
The list of subjects is as follows:
1.
2.
3.
4.
5.
6.
The development of the plan for the Agreement.
The origin and development of certain policies and in-
terpretations.
The effect of the Agreement upon emplo;TTient in industries
^■rhose individual members continued under it because codes
were not approved for their industries.
Details of the administration of the Agreement, particularly
in respect to problems arising under it.
Co:2pliance with the Agreement as compared with compliance
with codes, which would necessitate a study of compliance
in selected industries, the primary object being to de-
termine the possibilities of maintaining labor standards
by voluntary agreements.
The effects of the Agreement, especially on wages and
hours. As to this, while only one chart was available for
inclusion in this report, the reader's attention is di-
rected to statistical compilations prepared from information
collected from more than 500,000 signers of the P.R.A. by
the Statistics Section of the Division of Review.
METHODOLOGY
This study w"s de-"-eloped by reference' to pertinent TI.F.cA. files
and to the various orders, memoranda, press . releases and bulletins
referred to in the te:
sultation wir.h
activities in ccmiecti
ro. where it seemed advj -ab] -i by ccn-
rioijs in'-:! ■ v.tJi-Lals closely associated wi -oh HoP.A.
■Ji the P.R.A.
9819
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APPdH^DIX A
August 7, 193? , "
KEIA Legal rivision
M'^.lCP.^vTDI])/! ON Tl-JAaRkW 7 0? THE
Many rieo-cle worked on drafting this TDaragra-':h. I question vrhether
they all intended the same thing by it.
On any intei-oretation the -oaragra-Dh ar)-Dlies only to eimDloyees
above the miniriXim wage grouD, and. ai'tis to give them some "orotsctirtn.
Their "coinr>ensation'' , however that is interpreted, is not to be reduced,
and their "iDay" is to bo increased, by an ''equitable readjustrnsnt" , whose
■purTDOse, on all thecrieo. is to compensate in whole or x)art for a reduc-
tion of hours cf 'sork.cr -bo T.aintain in whole or uart long-standing wage
differentials, or both.,
Three theories '-f this iDaragra^h will be mentioned here, Each
gives a different meani-:g to "comDensation" ,
1. On one theory, "compensation'' means weekly earnings and not only
must they be kert where they are (even though hours are ■ shortened) , but
they must be increased by an "equitable readjustment" to preserve the
differential between the bottom groun and those above it.
This works out as follows: a factory emoloyee now works seventy
hours a week for forty cents an nour, earning fb28.00 ner week. He is
cut to thirty-five hours^ He must still get $28<,00 per week, idIus an
"equitable readjustment" to rreserve his differential above the bottom
group. As his hours are cut in half, his pay rer hour '^ill be more than
doubled.
As a natter cf language, there are a.rguments that this is what the
paragraph means; the phrase "compensation for employment" appears to
have been used deliberately instead of "wages" and if this is not the
meaning, wnat is the purpose of the par-^nthetical phrase "notwithstand-
ing that the hours worked in such emnlo^nnent may be hereby reduced"?
This construction, however, has been definitely rejected. One
reason is the drastically increased labor cost per hour which it leads
to, as shown by the illustrrticn already given. Another reason is shown
by the follot'i.a^ T'llusfcraticn; t'^o men are working in the same town at'
the same rate per houi' and at the same kind of work, but one man is work-
ing more hours per week than the other and hence is receiving more dol-
lars per week than the other. Both of them are working more than the
maximum number of hours. Under this interpretation, one would receive
more dollars per week than the other, when they both worked the maximum
week of thirty-five hours-.
2. On another theory, "compensation" jroans tne general level of
weekly earnings in th«. industry for the particular '-cind of work in ques-
tion. This construction will permit the redaction of the weekly earnings
9819
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of an eniDloyee receiving more than -the e-eneral level of weekly earnings
in the industry, tut would T^revent an employer from depressing the level
of weekly earnings on account of the shorter hours. He would he^ obliged,
■by an equitable readjustment, to increase the hourly ray (in the case of
persons paid by the hour) so as to preserve the general level and also
so as to preserve wage differentials.
This interoretation is more flexible than the first one considered
here, but has been re'jected on account of its vagueness and the difficulty
there would be in applying it.
?. The' third construction is the one which Interpretation numbers
one a.nd twenty attempted to make plain. On this construction, the word
"compensation" means cents per hour in the case ~of those paid by the hour
and means dollars per day, week, month of :/ear in the case of those paid
by the day, week, month or year. In other words, the employer promises
not to reduce the quoted basis of pay.
Under this construction, persons paid by the hour earn less per
week when their hou-rs are cut,, and an equitable readjustment is to be
made to compensate in some degree for the loss of earnings and also in
view of wage differentials. An employee paid by the day, week, or month,
on the other hand, would receive Just as much for the snorter day, week,.,
or month, and the only occasion for an increase by an equitable readjust-
ment would be to preserve a wa^-e differential.
The main difficulty '"ith this construction is the indef initeness
of the notion of equitable readjustment, especially in the case of an
employee paid by the hour. This construction rejects the view that an,
employee paid by the nour must receive as much for the shorter week as
he-formerly got, but at the same time , it' recognizes that his hourly pay
should be increased to some d-e.-'ree on accoant of the decrease of his
hours. But to what degree should the hourly pay be increased? 5hat is
the level of weekly earnings that we are s;ooting at? This is the, nub
of the difficulty.
It has been suggested that a forty hour week should be considered
as normal, and that therefore the level we are .'shooting at is the level
of weekly earnings which the employee would .have had if he had worked for
forty hotirs a week at his eld rate. It was felt that this rule was a
reasonable one, but that to lay it down flatly. in an Interpretation would
amount to a change in the president's Agreement. It is therefore hinted
at, instead of being expressly stated, in examples 1 and 2 in Interpreta-
tion number one. In Interpretation number twenty, the notion of "normal
work week in the industry" appears in place of the hint of forty hours as
a normal work week.
There are some cases, however, in which it is not fair to take the
worker's present hourly rate as a figure to use in computing what he
would earn in a forty hour we'-:>k or a normal work week. His wages may
have been recently increased, or they may have been abnormally high, or
a forty-hour week based nn them might place the employer at an unfair
competitive disadvantage. It was indicated in Interpretations number 1
and 20 that the "equitable readjustment" might properly take account of
factors like this.
9819
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The 153310 difficulty in irteruretin.?: -naraeraph 7 is this: we want
a construction that is Drecisc, so tnfit a "business man ifill Vrnow just
what he is to do. At the sarae time, we want something fle?:i"ble enough
to be fair in the many ?-oecial cases that we '^ill never I'now about ahead
of time. We must choose between definiteness and flexibility. I doubt
whether there ca-n bo any very satisfactory cora-promiso between them.
The latest suggestion that has been made is that em-oloyoes naid by
the hour should receive the rate of -oay which was -prevailins- on July 15,
1929, if hif;^her than their TDresent rate. It has been suggested that this
should be laid down as a rule and also that it shnuld be stated by Gen-
eral Johnson as his notion of what an "eauitable adjiistment" would be.
Wage differentials would thus be frozen to the July 15, 1929 level, and
equitable adjustments to preserve wage differentials could larobably be
omitted. This Tro'cosal has the advantage of definiteness. Its chief
disadvantage is its rigidity. There will also b'? cases in which work
of the kind in question did not exist in July 15, 1929.
A draft intcmretation along these lines is attached (See page 121).
It should be noted that this interpretation makes a sharp differ-
ence in the treatment of those raid by the day or week and those roaid by
the hour and that this line of division is by- no means always the same
as the division between nhite collar workers and factory workers. This
is true, also, of Inter-oretations 1 and 20, and is due partly to the way
the PBA is dravm.
Franklin S. Pollak.
SUGCrEST'^D INTEilPH^TATIOK OP PAHAGEAPH 7
Employees doing work of a character '-hich was paid by the employer
by the day or week on June 15, 1933, shall be paid the same amount per
day or week as they are obtaining nm.7, even if their present day or week
is snort ened by the Agreement,
Employees doing work of a character which was paid by the employer
by the hour on June 15, 1933 shall be paid at the hourly rate which
prov?iled for such work in the same community en July 15, 1929, or at the
present rate, whichever is higher.
9319
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irrEiTDix B
BUJE ILAGLE DIVISIOIT, YBA
I. ESTiGLISEED - AUGUST 10, 195S
I:-. Office Order ^'=2, df-tcd August 10, 193S, sibiicd by T.S.Haimnond,
Executive Director, President's Eccnnloyment Fro^reia, Geuerc.l Kamiaond
announced th; t oi:. and r.fter tli?.t dr.te, the designation of his office
v;ould he "Blue Er.glc Division, IIRA". On August 23, 1933, General
Hriimond, Executive Director, Blue Eagle Division, announced (con-
firming verhr.l instructions previously given) the a-T^ointment of
LIr. R?-^ D. Snith as Executive Officer of the Blue Eagle Division in . '.
addition to his duties as Assistant to the Executive Director of the
President's Reemnloyraent Program. (B.E.D.Ll. ,#l) .
II. PURPOSE
On August 11, 1935, R. D. Smith, Assistant to the Executive
Director, Blue Eagle Division, ITuA., in a memorandum announced that
General Hammond's Division v/as ch^,r^ed vdth the administration of TRL
Bulletin #3. "The President's Reemployment Program", dated July 20,
1933. This announcement was confirmed hy Gcncrrl MamiTiond in Blue Eagle
Division Kemorandum #1 (B.E.D.Ia.tI) , dated AugU£:.t 23, 1933.
III. ORGAiTIZATIOH
A. SEC? I Oils
1. EXECUTIVE SEGTIOiT
(a) Duties - To clear all administrative matters regarding
(1) Dccisicns of policy either within the
division or from the PPA. Policy Board
(2) Requests for ex-ienditures of money
(3) Personnel
(4) Contacts with other governmental departments
(5) Liaison contact with. 26 Bureau of Poreign
and Domestic Commerce District Offices.
(b) PERSOIHISL
(1) Executive Director, Blue Ea^.lc Divisi'T^n -
T. S. Hammond - August 10, 1953, Office
Order #2 - licmorandujn signed by T. S. Hajnmond
as Executive Director, President's Re-
employment Progroiii; also xJ.E.r.i-.ffl and fr'lO.
T."s. Eamr.iond transferred from PPJl to ITRA -
September 16, 1933 - 0. 0. #35.
9819
-31-
(s) Executive Officer, ^.E.Divir.ior. rxA Assistr.nt
to the Executive Director - E. D. Smith -
;:cnio Cs.cc.C AU;^ust 11, 1905; -.■.£. D.i.i.i'r'l and #10,
dated August 23 a... a Scptcnibcr 7, 1235.
(5) Assistr.;:t lo Executive Director av.d Liaisor-.
Officer tc PEA Pclic;i- Board - Ililliourne
J :-ly.:sto:\ - ::.E.D.i:.#10, Sc-itcnber 7, 1953.
(<.) Assistant - T-.C.Sarl:- - A.vast 18, 1933 -
IliUl Excel .tivcs
(C) Assistant - C-ccr^c 3. );artii_, Au^^ust IC, 1935 -
ITA. Executives
(6) Assistant - R. T/. Grain, AUji^ust IV, 1953 -
(7) Chief Cler^: - Lav/rencc Cardrell, Au;;ust IS, 1933 -
rRA Executives
2. liTOniATIOr SECTIOIT (E.E.D.;:.7>2, 7, 10 and 13)
(a) I'-" C:-IAEG-E - Coor^c 3. Ifertin - Aur^,u-,t 31, 1933
;.;cmcrandrr.i. Relieved August 31, 1933. (L.E.D.M.#7)
(b) CHIB? - P.. U. Grain - August 31, ]933 - 3.E.D.I.;.
-^^7 and #10. Handle all ca,llers rcquestin^g in-
formation re 3.E. i PPA. - 3.3.D.i;.#2 and 7 and 10.
3. EECOVEP.Y 3CA::DS SECTlOl' (3.E.D.iI. #2, 10 and 13).
(a) Duties
(l) '.>.in'tain contact with field throufjh State
and District P.eccverj Loards and Councils
3.E.D.iI.=;r2 and 10 rnd I Senior pjidujn d3,ted
AUi_,ust 11, 1935.
t^
to
(2) Consider certain .xttcrs pertainin,
ilLl Local Cor.u.dt tecs - ." ■.E.D.;.i.#2.
("b) PEPSOllTEL
(1) Chief - 3oaz Long - August 11, 1955,
1 xKio r an.dvjii and 3 . E . D . u . # 1 0 .
(2) Assistant Chief - D. C. Glassic - B.E.D.IJ.
#10, Sc-->-Gember 7, 1933,
9819
-82-^
4. COiTLAIilTS SZCTIOr (3.2. D.i:. #2, 10 and 13)
(a) DUTII5
(l) rlrndle all conr'-laints from field as
affecting operati:n of PEA, including
infringement of use of Blue Eagle -
August 11, 1933, memorandum and
:\E.D.H. #2 and 10.
(b) FEnsom'EL
(1) Chief - John D. lioorc - August 11, 1933,
I.Iemo and I3.E.D.;;.#10.
(2) Invcstirxtor - Thomas F. Sice - I.E.D.::.
#10.
5. HT'ZE?J'3ETATI01- SSCTIOr (I;.E.D.I;.t';=2, 10 and 13)
(a) DUTIES
(1) Information "bj- mail as to hovr to get the
:31ue Eai^lc - Aug. 11, 1933 L"emorandum.
(2) Interpret the PHA - 3.E.D.1.:.#2 and 10.
(b) FEP.SOIItlEL
(1) Chief - Colonel Lester G. Wilson -
August 11, 1933 Ilemorandum.
(2) Chief - E. S. Long - August 29, 1933-
Ilemorandum from Jjong to Dictators also
B.E.D.I.I.irlO, September 7, 1933.
(3) Assistant - W. 2. Pitts - September 7,
1933 - xi.E.D.i,;.#lO.
(4) Assistant - G. C. Hinchley - Sc;-)teraber 7,
1933, 3.E.D.LI.#10.
(3) Assistant - T. G. Early - September 7,
1933, B.E.D.I.I.vlO.
6. EXCEPTIOIIS SECTIOr (r..E.D.!;. #2, 10 and 13)
(a) DUTIES
(l) Pcccive rll -ictitions for Excc-itions under
Paragra;-)h 14, PRA - August 11, 1953, memo-
randum and B.E.D.i,;.v2 and 10.
9G19
-85-
(b) FZP.SOn^rEL
(1) Chief - :i. H. Pcttit - Au^.ust 11, 1933
ucrnors-iiduni.
(r.) Assistant - J. G, Cowling - IK-uA.,
E"ccutivc dated August 18, 1953.
(2) Chief - J. G. Cowli-g - Scptombcr 7, 1933
J. r.. D. ;;. #10.
(0) Assistrnt to Chief and Lct.Fl Adviser -
Tranlclin S. PollrZr - September 7, 1933 -
jj . Z. D. i.l, 7,-10,
(4) Assistant - L. H. Brin - Sentcnbcr 7, 1951
B. E. D. li. #10.
7. lilSIC-ITIA SECTICIT
(a) DL'::iss
(l) Physical distribution of 3. E. -
Ilenoranduxi August 11, 1933.
J^« ih.
(.?.) Pcrnission to reproduce
licniorandum Au^.unt 11, 1933.
(b) PEESCri'TEL
(1) In charjvc of originr.l office - le.ter known
as Insignia Section - Alvin Brown.
(2) Chief - E. i.i. Jeffrey - August 11, 1933.
(3) Assistant - IT.LI.r-uvall - Aug-ust 11, 1933.
(4) Chicf-lV.Li.Duve.ll-Sarly part cf Sept. 1953.
(c) COlE.IErTS
There appears to be some question rcga-rding the
Insignia Section coming under the Blue Ee,gle
Division as 3. E. Division IIcnior?.nduia' s beginning
August 23,1933 .mrke no reference to this section.
B. TPADE ASSOCIATION- SECTIOI" (B.E.D.I,i.#2, 5, 10 and 13)
(a) DUTIES
(l) Estrblish contact rith and rssist members
of Trade Associatitns in coning under PEA-
August ,?C, 1933-3. S.D.:;.#2.
9819
-84-
(?) Have inver.tigs-tions made v/ith reference
to complr.ints of sudden, end high in-
creases of ]-)riccs for commodities pur-
sur.nt to signing PEA and not under Codes-
Au^-ust 31,1333 - 3.E.D.:t.#5.
(o) FSIlSOimEL
(l) Chief - A. S. Youn^; - Septcutcr 7, 1933 -
r.E.D.L;.#io.
IV. REOEGANIZATIOK
A. AUTHORIZED - September 16, 1933 - 0. 0. #35.
B. ALL SEG?IOITS AgOLISHED - Septerabrr 50, 1933 - 3.E.D.M.#13.
9819
-85-
appei:dix g
liUE ::ao-le divisiolt itpa
■ 3!]0?:!}^-i"izATio::
I. AUTEORIZZD - Seriteiaber 15, 1335 - 0. 0. #33
II. PUFPOSE - B.E.r. .. -yio - Sciitc-ijer oO, 1933
A. A3Ji:.'isTH:.Ticr o:;- t:-i: pra tk^oug:; coj-PlicumCe boa-^js
1. 3U?32visicr o: state ;i::D i)ist;;ic2 boards
2. ciSiiTici: or Loaj. 3C].?LiAi:..;: :-oa:ds
3. KAIIDLIIIQ or 2:.GOi.;.EUi:..TI01IS AilD ZEPORTS 01' JO:,;PLAirTS
.j:e petitioes coi:i:'g ehoi.: colplleioe 30a:ids
4. E/EDLIilG or lETEEP'.ICTATIOES 01 PPA AID VAHIOUS SUESTITU-
TlOnS THE.'TTO
III. PEESCiTAL J^lTi DUTIES
A. C" lEP - Eraiil'. Hc^alj' - Se-otenber 15, 1933 - 0.0. -735 rnd E.E.I>.iI.
#13
1. ASSIST.UTT CHIEF AlTD AGTIEG GHIEl^ IE ABGSHCE CI" THE CHIEP
E. Joimston - Septenoei" 50, 1955 - E.E.E.E. #15
2. COITiISEL - Eranhlin S. Pollci: - Se^^tcnber 30, 1933 - 3.E.D.
H. #13, resTorxsible for hejidling oi' conplni;its rnd peti-
tions -^nd all m'^.tters in connection there'."'ith
(a) ASSIST;e:T COEESEL - T::i. p. Parns-zorth - Seiotenber
30, 1935. 3. E. E.O.I--. #15 - Eesyionfsible for inter-
"oretrtion?! and e::planation of PPA juad various ouo-
stituti:.ns thereunder.
5. ASSIST.UTT EOE JZCO'n.?:! EOAHDS - Eoaz Long - Se:ot. 30, 1955-
3.E.D.O.U. # 15. Eesponsitle for the handling' of all ;.iat-
ters 3.rising in conrection vith State and District 3ecover3'-
Eooxds.
4. AS3ISTAI:T rOP. COLPLIAITCE 30/aEiS - John Svope - Se;ot. 50,
1935 - B.S.D.O.E. #13. Pes;Donsi'ble for handling all no^tters-
arising in connection ^'ith crec?.tion and functioning- of
local Gonplicmce 3oa,rL.5.
5. ASSISTAITT POP OEEICS l.AlEiGE. ELIT - E. G. Earl—Sept. 50,
1953 - B.E.D, O.E. #13. Pesponsible for all natters con-
cerning the -oro'oemechrnical fionction of the Division ^nd
9819
-36«
nnintain liu,ison -.dtii and oet-'een the or;:,.-nizr.tion.
IV. TLBIII'ATIOII - Octo^oer 36, IDIJZ - 0. 0. #40
A. '.Ll^ EAG-LE SIVISIO:' Gl-IAITO-IO TO 2USE li:,QiLZ 'JFAHCH. COi.-?LIAIIGE
Livisio:: . . ■ .
9819
-87-
APPEl-DIX n
coMPLiAi'Ci] mvisici:, isa
I. ESTABLISICD - 0CT03ZS 25, 1953 - Q-pICS CRDBR -HO
II. PURPos:: - OFFICII o'fflsp. fio
A. ?'jl AID C0S2S
Chf>i'{ied vlth the (.".uty of p.ttemDtin;.T to r'Jju?!: all complaints of
violr.ticais of the P1A rnr Coc''.es of ?oir Goproetition.
3. ZIGIOl^L AS^l<OrZS
Set up ?.nc su'cer^rise such ""-e.^ioncl A.cencies as may be deoned
necessary to effect such pojiistment.
c. PZPjiAi^^T ^giokll 1":^ coi,iFLiAi:c::: system
Proceed to crerte a pe-^mo.nent Ptegional iHA Conrolionce System.,
mi. ORGAnZATIOi" - . ,
A. :-±2A-D - ilATIOFAL GOiiPLI^i^CZ: DI'^'^CTCil
1. General Jo.mson, Acting;, pending ao;ooint!nent of National
Compliance Director - Office Order fHO.
2. P.obert '■ . Lea, Actin""' for Johnson temporaril", -oendin.™ per-
manent appointment - Release #1510 - iJovember 2, 1933.
3. ";.'illiaa H. Davis, appointed Fational Compliance Director -
November 24, 1933 - Office Order #45.
■ • ■ (a) ASSISTAITT "ATIOI'AL CO: PLIAUCi: DIRECTORS
November 29, 1933 - Office Order Mo.
(1) A. J. Altmeyer, -.elieved 4/12/34 - Office nemo. #180
(2) i:. Johnston, Relieved 4/12/34 - Office. :iemo. . #180
(3) Traiilc Ilealy, "-Relieved 4/12/34 - Office Ilemo. #180-
Janua.ry 25, 1934. Office Memorandum.
4. Above positions abolished April 12, 1934 - Office Order #85.
5. Chief - A. J. Altmeyer - 4/12/34 - Office i-ierno. #130.
(a) Assistant Chief - Tfm. Ja]r Hoff - C.D.O.I.i. #17.
(b) Counsel - H. S. Pollak - CD. O.I.:. #17.. .
(c) Economic Adviser - H. "Teiss - C.D.O.i.;. #17.
6. Chief - L. J. iiartin - J^aly 11, 1934 - 0. i.!. --^250.
. B. BRAI'CSS
1. ADuinSTr-ATIVE 3?ji:"C:-i ( C.O. #40, 45 and 85; O.M. #180; C.D.O.M.
#1 end #17)
9319 . , . . ■
"88-
(a) DUTIZS
(1) Prepare a tap6Tt,'i,r conjunction with Division
Administrators anc the Trace Associrtion Division iTOon the Organization
of Code Authorities vdthre2;brd:'t'o.;i;ianaiing' particular- tj^oes of com-
-olairts - 0.0. #40.
(2) Perform those executive f\incti'->ns hit..erto per-
formed oy the folic In.:; personnel of the Blue Ea^ie Jranch - C.D.O.ii. #1 -
ll/29/3o. . - ,
(a) Recovery Borrcs Personnel
■■ • - ■ (b) Compliancf^ Boerds Personnel
(c) Correspondence and irformation
(Interpretation) Personnel
id) I.:ail Section Personnel
(e) Office ; .pjiagement and Chief Clerk's Office
Personnel,
(b) PBRSOr'1-^L
(1) Chief - G. C. loval', Jr. - 10/25/.'53.
0.0. #40. Relieved 11/24/33 - 0. 0. #45
(2) Chief - K. Johnston - 11/24/33 - 0.0. #45.
C.D.O.M. #1 - 11/29/33. Relieved 4/12/34 - O.H.
M.
a 80.
(a) Assistant - ^m. Ja;/ Hoff - 11/29/33 -
C.D.O.M. #1. Relieved 4/l2/o4 - O.J:. #180
(3) Chief - •:m. Jay Hoff - 4/12/34 - O.i:. #180
Assistant - K. TTatson - C.D.O.M. #17.
(a) ?ield Section
Chief - Jolm Sr/o ^e - 11/29/33 - C.E.'O.M. i#7 .
Relieved 4/12/34 - O.U. #180.
Assistant for District Compliance Directors-
Donald Renshall - 11/29/53 - C.D.O.M. #1.
Assistant for Inf orm.T.tion and Correspondence
G. C. Hinclcley - 11/29/33 -: C.D.O.M. #1.
■ ■ • Assistant for Recover/. Boards - Carl J'ir.h -
11/29/33. . .
Assistant for Local Compliance Boards - ^. B.
Pitts - 11/29/33 - C.D.O.M'. #1 . ' . . . ■ '
. ... Field Section .rem.oved from Administrative Brrnch
and constituted Pield' Branch -.4/12/34— 0.0..#85. ■)
(b) Executive Section
Chief - T. G. 3arr^ -' 11/29/33 - C.D^O.Li. #1.
Assistant - L. Care -"ell - 11/29/33 -•■C.D'.b.M.
( c) Control ?nd Correspondence Section
Also #17.
#!■ and 17,
Chief - R. M. Barnett - C.D.O.M. #17,
Assistajit -hE. A. Collins - C.D.O.M. #17.
9819
-b9-
2, TiUDU PHACTICL ^RAIJCII (O.O. f.O, 45 rnu #85; C.D.O.l.i. vl
and #11. )
(a) I'UTI^o
(l) Kantle conipiFints of violption-s ol ell ,n-ovi-
sion: of s.p_)i'oved code-- other then Labor Provisions -0^/2. 0.i.i. #1.
(3) -?;nc..le complpiiiti; o-f violations of PHA provi-
sions other thra-i Lrbor u'ovisions pnO. petitions foi- exception therefrom.
CD. O.i;. vl,
(b) F:.RoOJl'hL
(l) Actin,; C:.ief - K. Johnston 10/^735 -O.O.if'O
(j) L. D. Toii.Jcins a r.jointei. to orgrni^e and acnini-
ster T. P. Livi -ion - ll/3-.:/33 - 0.0. ff45.
• i'S) Chief - L. D. TouTidns - ll/,?9/?.3 -CD, O.ii. irl.
(t.) As-istsnt, John Iliff - 11/39/33-0.5.0.1;. #1.
(b) Assistant, :i. II. vValler " " "
(c) Assistant, Major T.A. Price " " "
(-) Chief - J. ;.;. iaryes - 1/35/S4 -O.H. <": C D.0.l.i.^fll-
l/:J0/5A
relieved -. /l3/3<t
(a) Legal Af^^lstant - Georje J. Jelcanrn -
1/30/3'^- - C.I.O.;... ttII.
• ■ ■ (b) As-i:;trnt - Ko^-^ard It. Ileyion, l/SC/S-'l-, CD..
CM. # li.
(c) ::x;: miner - 11. "'. seller, " "
II ti
((i) Trade Practice Branc}.! cuoli' hed f-. 1 ":. 5<': -
0,0, ifuo.
(^) Trrce Prrctice Branan )erHonnel absorbed by
Analyr-ic Lranch cstabli'iued d/l2/3^ - 0.0.-v85.
5. LA::0E BAI"C:J ( O. O. --^^^.O ana V-S5; O.'d. rl&C; C.D.O.K, #l)
(■a) LUTILS
(l) Handle comolaints of violations of Labor jrovisionc
o
f a,p_jrovec codes - CL. O.li. vfl - 11/29/33.
(2) xianale complaint'-:, of violations of PEA Labor Provi-
sions and ,;etitions for exception therefrom - CD.O.M. #1. - 11/ ?9/33.
(b) ?Zi:ibOr..':^L
(l) Chief - A.J. Altmeyer - lG/26/33 - 0.0. #40.
(a) Co-unsel - Wl;. h. i-lvin- 11/39/33 - C.D.O.i.i. #1.
relieved ^_/l2/3'. O.li.- #lc;0.
(2) Acmiiiistrative .;s..istc:-.t - J. C '.Tootten - 11/39/33,
C. D, O.u. Tfl.
9319
(3) As-istrnt for PEA exception - Z. Y/. Y/ells -
111 2.9 1 ZZ. C.D.O.H. #1.
( £') Le.'.el Asjist.nt - G-. V. Johncon -
11/29/L3'- c;d;o.h. #1. ■ • '
(uO ■ Lfc,^j?I Assistr.nt - J. F. Heely - 11/.39/33
CD. O.H. 7rl,
(-'.). Asfistf-nt for PRA Ccraplaints - Pl.M. 3?rneto -
11/29/C&- CD. O.Li. #1.
C D. 0. i.l, ifl»
(a') Legrl Assist.-nt - : . A. Olmie - 11/29/:
(6) As-i stent for Code com ,1; ints - 3en M. Willians
ll/29/33-C jj. 0.1.;. 7,-1. A:jpointe6. Executive Secrctrry, Advisory CoiJ-ncil-
6/2S/o^.. - .Division iiienioranc'xim ( ? ) .
(?') LeH'al Asrjir.tent - T-ios. Marshall -
11/29/33. cr.o.M. il.
: (c) LABOR r;RA::CH A30LIJI.LD - ^.712/34 0.0. Tr3[3
( d) LA30Z BI-Al'Cn Plj^iSOLll'lL A.jS0H:3LD 3Y AI-IALYSIS BRAI^'C'I
LSTA3LIbHLD'^^7l2/34 - 0.0. i^^CS.
4. BLU:. LAGLZ BEArCH - (Formerly 'niovn ,?f, 3LUi: ZkGU^ BI VI 31 01",
NHA) 0.0. ,f4C rnd =p45; O.IvI. dated 10/28/33 and 11/9/33; CD.O.Iu. vL
(a) IiU^IiS ' • - • ■
(l) Eosponsible for all matters regprding the PRA, ' in-
clv.v..in.; interprt-tatioiir' , exceptions., perrais'';ion to operate under v.nion
contract:'., coiTrplrintrj of non-compliance pnd correspondence vri. th State,
Discrict : nd. Local Boaro.s. O.I.i. dated 10/28/33.
(b) P:.,ESONin:L
(1) Ciiief - Prrnk Healy - 10/2f>/53 - 0.0. -MO.
(2) Assistant Chief, K. Johnston - 10/28/33 - 0. Ivi.
(3) Ap?.i',tant for Compliance Boards - John Sv/ope, in
chai';:;e of all matters rela.tin.^^ to or^-rnization, and functions and con-
tact --ith Local Corapllrnce Boards - 10/29/53 - O.'M.
(4) Counsel - Franklin S. PollaJc, in char,2:e of comialrints
and sU:2:^estionG - IC/2o/33 - 'O.L,;; Pollack as pi -nee. to Compliance Ilvision
as Le.:^-al Adviser - 11/9/33 - O.M.
(5) Asf.istant to Chief, v'ifm. 1,1. Calvin, in charge of
Exceptions and Coraijlaints Section- 11/ 9/ 33-0, 'll, Sr. As-^-'t. to Calvin -
J.C V/'oottcn in chariT:e,of i^xceptions -- 11/9/33 - O.I.i.
Jr. A"s't to G-alvin - J.w'. Iliff in charge of Excentions-
ii/s/33 - O.i..
Sr. As'-.'t to G.^-lvin - .^, i>'. l/Vellr: in charTe of Comliints
11/9/33 - O.M.
3819
-91-
(6) Ccunsel - Wm. P. Farnsworth, in charge of Interpre-
tation;: and Substitutions - 10/ 28/33 - T.lvi; Farnsworth transferred to
Aiauseraents Section - 11/9/33 - T.Ivi,
(?) Assistant to Chief - G. C. Hincl-lcy, in char^je of
Interpretations, Sectj.on - 11/9/33 - CM,
Sr. Assistant to Hinchley - P. C. Alsop - 11/9/33.
O.ll.
( c) AiJALGAI.JiTl-D AID C01'S0LIDAT::I:S Il'TTO LAJOH, THADL PRACTICE
Ai:i! ADI.J-'I STRATI V:^ £IiAl\CII;.G - 0.0. 7r45, ll/2^i/zZ and C.D.O.M.
i:. 7rl-ll/29/33.
5. A::ALYSIS BRAIv'CII (O.O. fSS; O.M. #180; C.D.O.M-. #1?)
(a) LSTABLISILD APRIL 12. 1934 - O.r. ,,--85 '•' ' . • • '
(b) o:tajjTiZAiio¥ Aia piniiomn^L-
(1) Chicji - Wm. M. Calvin- 4/12/34 -- 3.M. #180 and •
C.D.O.H. #17.
(2) Acjnini strati ve Ass't. - J. H. Vfootton - C.D.O.M.
yl7.
(3) Trade Practice Consultant - H. R. Heydon - CD. .0,1)1.
ffl7. ■ ■
(4) Assistants - L. S. Lightner, J. L. Peebles, B. M, •
Willi e2r.s, C.D.O.M. #17. . . ■ " '
(5) Assistants assi-^-ned b;,' Office of Counsel - j^.A. Cltuie,
L. Gay, J, Ilallfm, T. C. Liprshall, F. Meely-C. D.Q.M, #17,
6. FIl^LL .jRAlJCH (0. 0. 7r85; 0..,,. #180; C.D.O.M. #180)
(a) COIISTITUTID 4/12/3-^^ - 0.0. #85.
( b) OaGAKIZATIOl? AID P'..Ri0M-n.L
(l) Chief - John Swone -. 4./l2/'34 - O.M. #130 and C.D.O.li.
#17. " ' . . • ■
(a') Acministratl-^eAssistrnt, G. C. Hinckley-
C.D.O.ii, 7rl7.
Assistants - R. Byers, R. Donovrin, H. Dotterar,
U. 3. Pitts, J. J. Reinstein, N. Shirley- C.D.O.i.I. Tfl7.
7. GOVLRM.j:.iyr CCrTr.ACT A'JD COlviPl^TITIOIT JLCTION (0. 0. #85; U.M.
#180; C.D.D.eo #17)
(a) lST3Sm^nL^^^Jl^jA^__0.J.j^^
(b) ORGAHIZAI-IOi"
(a') Assistant - G. V. Johnaon - C.D.O.M. #17.
(b') As-.iptrmt - Jolon 'Knox - - ' " "
9319
"92- .
C. ?ZTa iii'l-lTT ADVISZHS 10 COMPLIMCL IJVISIOII (Authorized by 0.0. f:0
^ ;~ "" 10/26/53)
1. OFFICE OF THL CCUNGLL (O.O. #40 " and #45; O.M. #180; C.D.O.M, #1
(a) COUI-TSLL. - Fi-?.ril-lin S. Pjllack, designs ted by Legal
Division - ll/2' /33 - O.o'. #45 pnd C.D.O.lvI. #1 - 11/29/33.
("b) ASSISTAl'IT - Vm. M. Galvin, Assigned to Chief, Labor
.Branch - 11/29/33 - C.D.0.H..#1. ?.aieved -/12/3A - O.M. #180.
(c) ASSISTANT - Frank Hursey - 11/29/33 - C.D.O.M. #1.
( rl) LLGAL ASSISTAl'TTS
(1) Assignee, to J^. W. ¥ells, Ass't Chief, Labor Branch for
PEA E::ce jtions,
(a') G. V. Johnson - 11/29/33 - C.D.O.M. #1.
' (bO J. F. keels - ■" " ". .. . ,
;' (2)Assigned to ii. M. Bamett, Ass't. Chief Labor Branch for
PRA Complaints . ,
(a') „li^., A. Clune - 11/29/33 - C.D.O.M. #1.
(3) Assigned to Ben M. Williams, Ass't Chief', Labor Branch
fpr Code, Complaints
' (a') Thomas Marshall - 11/29/33 - C.D.O.M. #1.
(4) F. A. Hi'ley - 11/29/33 - C.D.O.M." #1.
(d) AssiQTied to Wm. U. Galvin, Chief, Analysis Branch
(a') L. A. Clune - C.D.O.M. #17.
(b') L. Gay - " , "
(c') J. Hallam - " "
(d') Thomas Marshall- "■ "
,(e'.) F. Meels - , " " : ;
(6) Assigned to Wm. Jay Hoff, Chief Administrative Branch '
'(a') K. Yfatson - C.D.O.M. #17.
2.I0FFIGE OF LCOTIOMIC AHD STATISTICAL ADVISEE (O.n. #40 and #45;
C.D.O.M. #1.)
(a) LC OKOMI C AFP _ STATl^Tj'c^4. JjjIIgj^ - Stanle;y I. Posner,
designated by Research rnt. Planning Division - 11/2-./33 -
0.0. #45 end C.D.O.M, fl. . .
9819
-93-
IV. TLr::i:'ATioii - AuavsT ;39, 1935 (oivici, i:y;Tr.uCTioH #2)
A. FLruSO'NAL I^COiaS Alu- i-'IAE-^lEIAL Oi'' TliZ COI^CLU'C::. DIVISION,
KEA, Se^ionel and State Cfiice'.; were transferred to the Field Division,
KBA.
}819
-94-
APPEiroiX E
NATIONAL COirPLIAWCE EOaED
I. ESTABLISHED - October 26, 1935 - Office Order #40.
II. PUHPOSE - Office Order #40
A. PEA POLICY BOARD
Perform all necessary duties and functions of the PRA Policy
Board alJolished,
B. COlgLAIi:TS
Upon reference of complaints from the National Compliance Direc-
tor, to uiiderta.':e further attenr^ts to adjitstment, recommend excep-
tions, remove the Blue Ea^le or recommend referrence to the Federal
Trad.e Commission or the Attorney Genera,l for appropriate action,
III. OEGAIIIZATIOH AiTD PEESOliilEL
A. CI-AIPJJAI'T
national Compliance Director, Cliairman (O.O. #40),
1, Pending appointment of a national Com-oliance Director, the
follovdng acted as Acting Clia.irraan: Colonel Rohert W. Lea,
ICiloourne Jolinston, G-, C, Royall, Jr., ¥. J. Hoff and Stanley
1, Posncr,
2, to, n.. Davis, National Compliance Director, 11/24/33 - 0. C»
•;H5. Relieved as national Compliance Director, 4/l2/o4 (O, 0,
#85 and 0, M, #180), Dut continued as Chairman, National
Compliance Board uiitil ahout Liay 15, 1933,
3, Dr. Altmeyer and Captain Menry Williams acted as Chairman
until the Board was aholished on Ilay 51, 1934, '
B, INDUSTRIAL ADVISER - Appointed hy the Chairimn of the Indaistrial
Advisory Board,
I, C. L, rieyniger, Acting Adviser - lo/oi^/33
3, L. L. Tomphins - ll/l/33
3. ¥. J, Barrett, Acting Adviser - ll/l6/33
4. R. J. Hamilton - ll/20/33
5. C. J, Rarasherg - 11/31/33
6. C, J. Rumley, Acting Adviser - 11/2E/o3, Adviser - 5/l0/54
7. Hugh Comer, Acting Adviser - 1/.23/34,
8. B, A, Brennan, Acting Adviser - l/27'/34. Adviser - 3/5/34
9. W. Yf, Tangerman, Acting Adviser 3/6/34
10. C. Yf. Churchill, 3/50/34
II. C. H. Sudler, Acting Adviser - 5/2/34
?819
-95-
C. LAIBOB ADVISER - Appointed "by the Cliainmn of the Lahor Advicory
Board
1. Dr. Leo 'Jolman - 10/^"/33
2. Dr. W. J. WoolGton, Acting Lahor Adviser - 11/8/33
T. F Eehncy, Acting; Lahor Adviser - 11/13/33 - Adviser ll/l4/33
o,
D. E}SCUTI^i: SECRETARY
1. G. C. Royall, Jr. - 10/26/35 - 0. 0. #40.
S. COU!'^SEL - Assigned by Legal Division, EEIA
1. Franklin S. Pollal: - 10/26/33 - 0. 0. #40 and #4-5.
F, EC0:T0::IC MD statistical adviser - Assigned hy Research & Planning
Division
1. . Sto.nley I. Posner - 10/26/33 - 0. 0. #40 and #45.
G. ASSISTAI^TT MTIOIvAL COkEPLIANCE DIRECTORS
1. A. J. Altmeyer - 11/24-/33 - 0. 0. f-45. Relieved 4/12/34 -
0. 0. -#G5 and 0. M. #180
2. Kilhoiirne Johnston - 11/24/33 - 0. 0. #85 and 0. M. #180.
3. Frank Healy - 11/24/33 - 0. o. #85 and 0. M. =#180.
4. J. M. Mayes - 1/25/34 - 0. H. Relieved 4/12/34 - 0. 0. #85
and #180,
H. FOSITIOHS AND TITLES OF NATIONAL COMPLIAliCE DIRECTOR, AILD ASS.I_S_TMT
COIJLIAITCE DIRECTOR - Aholished 4/12/34 - 0. 0. #85.
IV. TERMINATION - May 21, 1934 (O.O. #90)
A. FUrlCTIOi'iS AND PERSOHIEL - Transferred to the Coiropliance Division,
NHA.
i819
-96-
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-\32-
APPENDIX G
GE^^INrai^W AT K)N^_^XPL MAT I OI'IS^. INSTRUCTIONS MP RULINGS_
i£££SSM!TS - See "Professional Occupations" .
ACTORS, MDJJIGHT CLUB _ENTERTAniERS_ IJUVENILj). - Such minors are pro-
hibited froia working, if the theatre or cluh wants the Blue Eagle (.Card
#1182) (*). Also see "Minors" and "Paragraph #1, PRA" .
ADVSRTISSKKTS ^ InTEWSP./^ER - "A news^^apcr may not accept advertisements
carr5.'ing the Blue Eagle nVitil ndv^rtisero ' names are actually posted on
the Konor Roll, or else until the employer produces oorac receipt or
other evidence from the Postmaster. Gencrnlly speaking, the NRA exer-
cises no authority over newspaper advertising columns. It is not, how-
ever, permitted to publish any so--called honor list or list purporting
to enumerate l^IRA members unless all are included. Any list that does
not include all establishments that come under the. Eagle must definitely
state in the advertisement or at the head of the list that this is only
a partial list and does not include all. The idea of this is of course
to prevent any NRA member who docs not agree to pay to have his name
included, from being considered by consumers as not among those who
have joined." (Card #1183 and release #731).
AGRICULTURAL vVORKERS - "Agricultural workers are all those employed by
farmers on the farm when they are engaged in growing and preparing for
sale the products of the soil and/or live stock; also, all labor used
in growing and preparing perishable agricultural commodities for market
in ori.5i:-.al perisha];le fresh form. liThen workers are employed in pro-
cessing farm produces or preparing them for market, beyond the stage
customarily performed within the area of production, such workers are
not to be deemed agricultural workers." (Drafted by Dr. V^Tolman, Chairman
I'IRA Labor Advisory Board, approved by George N. Peek, formerly co-
Administrator, AAA and General Johnson).
APPREl'TICES - "The minimuni wage provisions of the Agreement do not
apply to apprentices if ijuader contrr.ct with the employer on August 1,
1933, but no one shall be considered an apprentice within the meaning
of this interpretation, who has previously completed an apprenticeship
in the industry." (Basic Interpretation #9, General Johnson, NPJl Bulletin
#4).
"Employers are permitted to hire apprentices after signing the PRA,
but not at less than minimum wage unless such apprentices were under con-
tract prior to August 1, 1933, unless specifically provided for under a
substitution to the PRA. Apprentices are not considered as professionals
except that in schools such as nursing schools, v/herc the training is
professional, they are excepted from wage and hour provisions. V/here
(*) "Card # ~ " refers to the cards on which were incorporated the
various interpretations, etc., promulgated by the Blue Eagle Divi>
si on, iTBA.
9819
■1\ ■..«i.nr»„,y^^ -.. ,J^.:
-133-
substitutions to the PRA limit the xjercentage of ap-orentices that may
be employed, the percentage shall he based upon the number of employees
in the particular establishment affected. 'No employee shall be con-
sidered rii apprentice unless there is a definite agreement between him
and his employer as to the length of his aprjrenticeship and the amount
of remuneration during said apprenticeship.' (C. S. Long). No one shall
be considered an apprentice who has previously Completed an apprenticeship
in the industry." (Card #1188).
"Employers are not expected to hire oi contract for apprentices
after they sign the PRA. Interpretation #9, referring to apprentices,
covers only those who are actually apprentices before August 1, 1933.
The object of the President's Reemployment Program is to put \inemployed
men back to work. Therefore, why train younger men for positions that
can now be filled with iineraployed men? Apprentices, during the period
of apprenticeship may be paid at a rate not less than BO'J'j of the minimum
rate; such aijprentice class shall not consist of more than 5',3 of all eir.-
ployees in any esta.blishment . Each factory would be a separate establish-
ment. (Lt. Johnston).
ARTIS'::S (INCLUDING COLflvISRCIAL ARTISTS) - See "Professional Occupations".
ARTISTS, PHOTOGRAPHIC - "The status under PRA of Photographic Artists is:
(1) Complete exce-otion for those receiving more than $35.00 per week,
(2) Actual artists are excepted, (S) Others of this class, not covered by
Paragraphs 2 and 3, are to be averaged at 40 hours over a 6 weeks period."
(Policy Board or thru Mr. Richberg, August 25, 1933). Also see
"Professional Occupations."
BACK V/AC-SS DUE EMPLOYEES BY VIOLATIONS OF PRA. POLICY ON COLLECTION -
"The NRA Policy is well established that the National Compliance Board or
a local Compliance Board may properly require an Adjustment by restitution
of back pay as a condition to continued display of the Blue Eagle under
PRA or as a condition to restoration of the Blue Eagle. A number of local
Complia;ice Boards are on record as refusing to py.t themselves in the
position of collection agencies. As a matter of practical administrr.tion
we may advise the Local Compliance Boards to assist in recovering back
pay. The Local Compliance Boards may adopt the r^olicy cf withholding
recommendation for removal of Blue Eagles from violators of PRA who make
restitution to employees." (National Compliance Board, December 13, 1935).
BAKING INDUSTRY, - "Bakery deliverymen should be limited to a 40 hour week
as Called for in the substitution (paragraph 2) to the PRA approved for
the industry." (Advisory Coxmcil, Compliance Division, June 6, 1934( ,
"Outside salesmen as it appears in the Baking Industry substitution, shall
be interpreted to mean the sajne as the term "salesman" as defined in
Section S, Article II of the Baking Industry Code which became effective
July 9, 1934 which says 'The term salesman as used herein shall mean the
employee on bakery routes, whether wholesale, house-to-house, or other-
wise, and any other sales employee whose principal duties and functions
are -performed not less than 6C,j of his working hours outside the establish-
ment or any branch thereof by which he is employed, and who regularly
delivers the bakerj"- -oroducts vmich he sells.'" (Compliance Council,
NRA, July 16, 1934).
-134-
311-jK CG1TSE5VATGRS Al^ Bjiinc :^5CEI'rHS - "If the "banlc desires to display
the Blue Eagle they come within PllA.. " (C S.' Long). :
3aZB"CUE AiTD HGT XG STAIIDS - I'Considered as restaurojits under the PRA. "
(C. S. Long). "Tips received iDy such employees are not apart of their
minimum compensation." (l. G. 'Vilson, August 19, 1933).
EAHBER AIT) BEAUTY SHoFS - "
Subletting of Chairs in Barher end' Beauty Shops - "A harher who
subleases a chair in a "barber, shop and who also operated on this basis
prior to June 16, 1933, is an independent contractor and is subject to
neither maximiua hour nor miniraiun nage provisior.s. " (C. S. Long).
Barbers Paid Solely on Cor..uissions.- ,"Under the substitute pro-
visions applying to. barber and beauty shops, all barbers (except those
exempt in Paragraph 4, PEA, fend owner-operators, mthout employees) are
limited to a 48 hour work week. All barbers (except as mentioned above)
are limited as to ■ maximum hours but are no.t limited as to minimum wage."
(Lt. Johnston). This latter interpretation appeaxs to be illogical, and
was never enforceable.
Barber Shops and Beauty Shops, without Employees - "There has been
a great deal of difficulty over the barber ejid beauty shop substitution
especially so .as they have attempted to limit the hours of the small-
shops to 52. It is, of course, possible for one man shops to get the
Blue Eagle, by the owner signing the straight PRA, but it is the opinion
of the Deputy Administrator in charge of the Code that submission will
be hastened and participation increased if the idea gets around that the
entire industry is bound by the substitution. The Board has talcen a
midway stand on this sjid has sent the attached letter to the Associated
haster Barbers of America. Of course, if a man writes in and asks a
point blank cuestion, 'Can I get the Blue Eagle by signing the PRA with-
out substitutions', we must tell him that he can, but where possible,
use a copy of this letter as an answer. Partnership and owner operated
B3.rber and Beauty shops, without employees, are limited to 52 hours per
week of shop operation in order to operate under the substitutions granted
and signed by Administrator Hugh S. Johnson on August 8, 1933 for the
Barber Shop and. Beauty Shop Industry. This limitation will continue in
effect until the matter is finally settled by approval of a Code for the
Industry by the President." (PFA Policy Bocrd - '7, P. Farnsworth).
BARTER LEAGUES - "Barter Leagues employing help and paying v,dth food,
shelter and other necessities of life are not exempt from the PFA.. Such
employees must receive, at least the minimuia wage and must not be re-
quired to work in excess of the maximum hours permitted by the PFA and
any substitutions thereto. Whether the employees receive compensation
in money or commodities, etc. is a matter for adjustment between the em-
ployees- and the League." (C. S. Long).
3ATTIHG M:D PADDING IITDUSTRY (SUBSTITUTIONS).- Definition - "The term
'Batting and Padding Industry' as used herein is defined to mean the
manufacture of batts and pads. These batts or pads are manufactured
principally from cotton or wool fibres processed over garnett machines
or, cards for resale purposes. These batts or pads are used primarily by
9819
the purchaser to upholster autouohile 130(1163, to upholster furniture,
and for insulating purposes, as well as in the manufacture of comforters
r.nd nr.ttresses, and oth.-5r proav.cts so filled." (P3A Policy Board,
August 9, 1933).
3EAUTICIiJj:S " See i' Barters".
BS^CTY SHOPS - See "Barters".
BBG-I^^'ERS - See "Students and Learners".
BILL CCLLECTCRS, CUTSIPE tr. CCuISSItl' - See "Coaiission "Torkers".
BLUE STaRS G1: irSiG-i:iA - see "Insisni;.i" .
BCATBirG IIPTTSES - "If smell ond they are really priv-te homes the few
domestic servants are excepted. But if in competition 'vith restaurants,
the restaurant substitution applies. If large estatlisliments and run on
a hotel besis, employees ;. re suLject to the F U-.. " (Lt. Johnston).
BGAP-DS OF TIL4J)3 - See " Chamber of Conmerce".
BOOT BLACK STjli^DS - See "Shoe Shine Stands".
BBuaTCH ESTABLISH..!: 'TS - f Chain store oraiiches, etc.) "In cases --.There
there are not more than two eniployees in tov,ns of less than 2,500 and
not part of a Irrger trade area, employees are not subject to maximum
hours. (Paragraph 4, PRA) , because the manager signs the .Agreement and
the Certificate of Compliance for his o\7n p rticular brnnch. The wages
of these employees shailo, be rpdsed p.t least 20'^b. if raising of wages
20;o brings the pay above the minimum specified for that particular busi-
ness, then they need be paid only that miniiiium." (Card To. 1199, also
see Bxecativo Order ^6710 which refers to "not more than 3 establishments"
rather than "2 employees")'. ""h^re the manufacturing establishments,
chain stores, chain restaurants, etc. , have many est:i.blish2nents in
different loqations and different cities, the managers of these branches
are expected to sign the PRa and Certific-te of Compliance applying to
the employees under their control." (Card lio. 1199).
"It is not necessrry for the owuer of a chain of shops to sign the
PRA. for each shop in order to display the Blue Eagle in each shop. In
cases T.^here the O'Tner of a cliain of shops h:.s signed the PRA, the em-
ployees in each shop of the chain are subject to the provisions of the
PRA and any applicable substitutions approved thereto." (F. S. Pollak,
ITovember 13, 1935). This rioling ues net xuiiformly followed by the
Compliance Division, 'i:?A..
BUY~RS (cut SI be) - See "Comiiission '"forkers".
CABBIES or 'XL? COURSES - "Caddies are covered by paragraph 2, PRA.
If caddies are employed by a club they must be paid the minimum wege.
If the club does not employ the caddies, but merely permits them to stay
at the club while awaiting engagements, the caddies are in business for
themselves, pnd wage end hour provisions do not apply." (C. S. Long).
9819
-1?6-
Cjqri'IlTG II'SUSTRY Sl'BSTITUTIGII - Sut-paragraph (c), Paragraph 6, has teen
interpreted to mean that the average of the total wAges of all employees
in Class 3 employed in any one establishment in the same homework operation,
must eoual the minimum wage for that region. (llilA. Bulletin #6).
CAZBGNATSD BET^RAGE INDUSTRY - See "Soft Drink Industry Substitution".
CARRIERS GIT A WAG-E BASIS - See "Daily Newspaper Publishing Industry
Substitution", "IJon-iuetropolitan publishing^Printing and Printing In-
dustry Substitution", and "Newspaper and Magazine Distributing Industry
Substitution".
CELiETZRY WGRKERS - Covered by Paragraphs 2 and 5, PRA (Card :.-'1202).
CERTIFIED PUBLIC ACCGUITTAI^TS - See "professional Gccupations" .
CERTIFICATE GF CG^PLIAJJCE - See "Date of Compliance".
CHAIN STGRE BRAl-IChES - See "Branch Establishments".
CHAIN STGRE LAITAGERS - Such managers do not come under the "very special
case'' clause of paragraph 4, pllA, the $55.00 clause applies and they
should not be wor]:ed ov'^rtime even th'-ugh they are paid time and one-third
for overtime. (Lt. Johnston). See "Branch Establishments" .
CHAJiBERS CF CGIvl-'ERCE - "Chambers of Comiaerce are expected to sign PRA
and put into effect the provisions of the Agreement with respect to hours
and V7ages of employees. If a Cliamber of Commerce desires a stay of the
provisions of the PRA respecting wages and hours of employees, it cannot
appro"'3 its own application for relief, but must secure approval from
some oi^sr organization in its community such as the Rotary Club or the
Kiwaiiis Club." (C. S. Long).
CHARGES FGR MEALS. KENT, LAUmRY, ETC.- bee "Deductions from Wages".
CHARITABLE GRGANIZATIGNS - See "Non-Profit Grganizations" .
CHIL'D LABGR - See "Paragraph 41, PRA" and "Minors".
CIGAR MANUFACTURING I1:DUSTRY - " . . the rate of pay for all 'strippers'
whether machine or hand shall be 22-j^ an hour minimtun" - this refers to
paragraph "C" of the substitution to the PRA approved for the industry.
(Advisory Council, Compliance Division, May 23, 1&34).
CIGARETTE, CHEWING, AND Si.IGKING TQBACCG AND SIUFF INDUSTRY - ( Sub-
stifution for prragraph 6, PRA) - "The minimum wage for stemraers, etc.,
on piece work must yield an average return to the workers as a group in
that classification of not less than 265* per hour. The average return
shall be calculated on a group basis and net on an individual basis."
(Advisory Council, Compliance Division, June 6, 1934).
CLERKS IN GTGRES - "These employees must be guaranteed the minimum wage
specified in the PRA whether or not they are employed on a partialis'- or
solely commission basis." (l. G. Wilson, August 19, 1933).
9819
-137-
COLLECT Gas - "For all practical purposes outside collectors are regarded
in the same light as outside salesmen if working- entirely on a commission
"basis. If the collectoi' vms r/crking on the tasis of a vrage plus com~
missions, prior to June 16, 1933, he is considered as coming under the
minimum wage provisions of the PHA hut is exempt from the limitations
on working hours." (interpretation Section, Blue Eagle Division, rlRA.),
COLLEC-SS (BUSIi'ESS AIID FBI VAT']: l- See "Schools and Colleges ('business and
private) . "
CGLLEC-5 STUDEHTS -^ See "Students and Learners".
CCMIEIiCIAL AP-TISTS.- See "Professional Occupations".
COU^El-lCIAL DUPLICATIHG -Ars i,4ILI':Ta I'^rUSTRY - "(l) Employees in this
industry engaged in regiilar routine office work for their employer (not
filling orders for customers) shall he considered as paragraph 2 em-
ployees, (2) Employees in tliis industry engaged in filling orders for
customers, producing such material for mailing and placing it in the
mails, shall he considex-ed as productive or factory employees (paragraph
3 employees (paragx'aph 3 employees)." (Compliance Couiicil, !IRA, June
29, 1934).
CGI.I-ISSIGH 'TGBIvERS (iriSISE 6 OUTSIDE) - "At the present writing, sales-
men solely on comi^iissiou arc not defined as employees and consequently
do not come under the provision of the PRA as to v/ages find hours."
(Card #1215).
"In the case of any salesman who, prior to J\ine 16, 1953, was
operating on a fuarantead wage hasis end suhsequent to June 16, 1933 was
changed to wholly commission hasis, it ivill he assumed that the change
was made to evade the provisions of the PiU. and would he in violation
of Paragraph 8, P3A - Suhtex-fuge." ( CtU'd =:fl215).
"It is permissihle to hire employees on a wholly commission hasis
suhsequent to June 15, 1933, provided it was customary for the employer
so to do prior to June 16, 1933, or was customary as a.pplying to the
class of employees in th;:.t line of hiisiness prior to June 16, 1933."
(Card Tfl215').
" S-o-hstitutions to the PIl.4 approved for particular trades or in-
dustries and inteipretations thereto may alter the ahove." (Card 7/^1215).
Salesmen on Comi;iission having drawing accounts - "If the drawing
account is merely a-n arrangement of convenience hetween the employer and
the salesman, permitting the l.tter to ohtain advances of money which are
later deducted from the com:nissions V7hich are ea.rned, the status as a
salesman on commission is not altered, BUT if the drawing a c count is in
any way a guarantee, it is considered a ha.se pay arrangement, and in such
case the salesman cannot he regarded as a salesman entirely on com-
mission." (Card 121b).
"Outside Buyer working on coramission vathout any salary guaranty
has the ssjne status as an outside salesman v.'orking on commission. The
conpensation to he ohtained in either case is contingent upon the volume
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of ■business." ( Card #1214).
"Outside Collector who works wholly on commission has the same status
as an outside salesman wholly on commission." (Card 1^1214).
Automotive Maintenance Industry - "Automobile repair men paid on a
commission "basis are piece workers, and are subject to maximum hours and
minimum wage provisions Of the PHA and suDstitutions thereto approved for
the Retail Automotive Maintenance Industry." (Card ^1=1579).
CGFSTITUTIOIIAL RIGHTS AITD/OR IMI.'IUIJITIES - "There can he no inclusions or
changes to the PRA such as 'provided, that "by signing the Agreement we
waive no constitutional right or immunity.'" (Card -7,^1489).
CONTRACTS - "The signing of the PFA. does not a"brogate any union contract
or any other "bona fide contracts, nor does it authorize or permit the
violation of such contracts." (PRA Policy Board or thru Mr. Rich"berg,
August 25, 1933).
CONTRACTS (APPRENTICES) - See "Apprentices".
COI'ITRACTS (EEJERAL) - "Existing Federal Laws require that contracts
sliall he awarded to the lowest "bidder. It is the policy of the Adminis-
tration, however, to advocate legislation as soon as possi"ble, providing
that" contracts shall "be awarded to f irms and individuals that are mem"bers
of the NRA. " (Card #1226). See "Government Contracts and Loans", page
74; PulDlic' Act #369; aid Executive Orders #5246 and #6646.
CONTRACTS FOR GOODS AtTj/oR SERVICES - "Concerning contracts entered into
prior to June 16, 1933 with suppliers who later increased prices un-
reasona"bly for goods or services contracted for "before June 16, 1934,
purchasers may require proof that such increases were necessitated "by
reason of the suppliers' adherence to the PRA and that such increases
are not in excess of the actual increased costs caused "by compliance
with PRA.
"Paragraph, 12, PRA does not cover contracts made after June 16,
1933. An ar"bitrary date had to "be set and date of the Act is an
appropriate one and especially 'since peak prices at that time'.
"Concerning cjiestion of v/hether contracts made prior to June 16,
1933 can "be cancelled when permanent code goes into effect, in cases
where costs of raw materials have increased to such an extent that the
finished product must sell "below cost; this is not a question under the
President's Agreement, "but a question of what will happen when a parti-
cular permanent code goes into effect. Neither the President's Agreement
nor any code is intended to a"brogate existing contracts. The president's
Agreement provides for adjustments in the cases of contracts made prior
to June 16, 1933. Whether or not a similar adjustment clause will "be
included in the permanent code for this particular industrj'- is a point
to "be taken up with the Deputy to whom this industry is assigned."
(Lt. Johnston).
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"Paragraph 12 PEA presents a simple and concise statement in vhich
the "buyers of ^oods -ourchased on contract prior to June 16, 1933 agree
to make an ajjiiro-nriate adjustment of -orice to "leet any increase in cost
caused by the seller having signed the Agreement or having 'become bound
by any ap'oroved Code, ^''o excetjtions are provided in Parpgra-nh 12 other
than that such increases are to be made only in cases '"here the seller
of goods has either signed the Agreemenit or has become bound by coming
under the "code. The PRA is a voluntary agreement of the signer rith
the President in T^hich the signer agrees to do certain things in order
to meet a National ■Emergency. In vie^ of the fact that the PEA is not
law, the apflication of ParagraTjh 12 is entirely de-oendent UT:ion armro-oriate
adjustment between the buyer- and the seller. It is in fact almost entirely
contingent upon the good faith and the sense of moral obligation and fair
play on the "oart of the buyer. There is nothing in the PEA which in itself
is intended to abrogate existing contracts. The matter of Drice adjust-
ment in Paragraph #18 is one- for mutual agreement between the parties
concerned." (Card*1488).
CONTRACTS (LABOR UITION) - "If you have a contract with a labor organi'Tiation
calling for longer hours than the President's agreement allows, and this
contract was made in good faith by collective bargaining- and ca.nnot be
changed by you alone, try to get the labor organi?a.tion to agree to a re-
duction to the maximum hours allowed by the President's agreement. If
the labor organization will not agree, you nay apply to KEA for permission
to work your employees as many hours a week as the contract calls for.
Send to HRA a request for this permission, with a 'certified copy of the
labor contract, and any statement if the fapt you desire.
"This apnlication will be handled by MRA in the same manner as an
ap-olication for relief in cases- of individual har-dshi-o, filed under para-
graph 14 PEA, but it will not be necessary to obtain the a-o-oroval of a
trade association or other o rganizpti'^n. If IWA approved your application
or is -able to bring about any modification of the contract, ■"■ou will then
be granted permission to work 'emplo^'-ees in accordance with the contract as
originally written or modified, and can then sign the Certificate of Com-
pliance adi^ing to it the following: 'Except as required to comply with
the terms of the agreement in effect between the undersinged and the
^labor organization.'" (General Johnson, I'^EA Bulletin M) .
"The following language - 'If NRA approved your ap'olication or is
able to bring about any modification of the ' contra.ct' - means th^t l'T?A,
upon receipt of a petition for permission to o^-^erate under a Union Contract,
will investigate as far as possible to determine how far the employer has
made a bona fide attempt to have the contract modified by negotiation i"'ith
the Labor Organization. If ISIA feels the employer has not obtained all
the modification possible, NPA will negotiate directly ^^ith the Labor Or-
ganization in question." (Lt. Johnston). Also see "Local I'TIA Compliance
Board Regulations for handling PRA petitions to operate under union con-
tracts - Exceptions to the PRA", pages 70 to 72
COIITRACT (OIL COMPAKIZS) - "The question has arisen as to whether Section V,
Article 2 of the Petroleum Code applies to contractors supplying services
or material t» the oil industry (such as fabrica.tors of steel plates).
The answer is tliat Section V, Article 2 does not apply to such contractors,
9819
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Fho should oTDerate under their own suhstitu-tirins for the PPA, unless in
fact they are operating vfithih the Petroleum Industry, such as subcon-
tractors who, drill oil vrells. " (Card =41225).
CORPOBATIOKS ^QF^ICERS ATIP STOCKHOLDERS) - "officers are .employees and
not exempt fi'om maximum hour ■orovis ions, PRA, if under ^t^SS.OO vev rveek.
Stockholders who are employees have the same status." (Card #1227).
COUMTEY CLUBS - See "Kon-Prof it Organizations".
COUNTY GOVERTO/IENT. EHPLOYESS - See "aovernments".
CUEB SERVICE EMPLOYEES - "Such employees must be over 1<=, (see paragraioh 1,
PRA) and must receive at least the minimum hourly rate specified in the
Restaurant substitution exclusive of tips." (L.G-. 'Vilson, August 19, 1933).
DAILY ICEV.'SPAPER PUBLISHING INDUSTRY ( SU3STITUTI0H) - "Carriers on a wage
basis shall be loaid the minimum wage specified for sales emioloyees for a
full week and an h'^urly rate based on 40 hours per week for less than a
full week." (National Com-oliance Board, January 25, 1934).
DAIRIES." small:.- see "Farmers". ' ■ ' '
DATE OF COMPLIANCE - "It is expected that all employers desiring to co-
operate with the President's recovery program will sign the Agreements
promptly and mail them in. It is recognized, however, that it will be
physically impossible in many instances to adjust employment conditions
and to hire the necessary additional personnel in order to connly with the
Agreement on August 1, 1933. For that reason, provision has been made for
issuing the Blue Eagle only upon the filing of a certificate fo com-pliance.
It should be possible in most instances to make the necessary adjustm.ents
and file a certificate of compliance within the first week of August, 1933,
and such action, taken as promptly as possible, will be regarrled as carry-
ing out the Agreement in good faith." (Basic Inter-oretation =*3, General
Johnson, NEA Bulletin =*4).
DEDUCTIONS FROM WAGES "- "Excent in the restaurant industry, no deductions
for any purpose may be mnde from the minimum wage in any event. The pay
envelope must be delivered intact to the employee. The substitution a-p-
plying to the restaurant industry provides . specif icially that deductions
may be made from the Day envelone for meals furnished to employees, when
such was the custom x>rior to June 16, 1933, and thpt the amount deducted
shall not exceed 25t^ per meal or 1^3,00 in any one week. Inaugurating such
deductions, when they were not customary urior to June 16, 1933, is con-
sidered a subterfuge until the contrary is pro"e.n. " (Card #1233)
"Bona fide charges as distinguished from' deductions nay be permitted
under certain circumstances if the employee first receives the pay envelope
intact. These cover situations in which the employer acts in the capacity
of landlord, where he rents uniforms or where the employer -performs some
other service for the employee, as where he launders uniforms. If it was
not the custom to make a. charge for such service prior to June 16, 1933,
it should certainly not be made now, Ihere a customary charge was made
prior to June 16, 1933, for example, for the rental of wearing apparel,
or where laundering had uniformly been handled by the employer and a charge
9819
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made for it prior to June 16, 1933, the eniTDloyer may continue to make a
reasonalile charge for such St^rvice, In every such car-e it shall "be
mandatory that the employee have the O'otion of furnishing the same ser-
vice himself (herself) and be relieved from the charge," (Cards Nos.
1233 & 1234).
"There can he no deduction from the pay envelope exce-ot for meals
as specifically provided in the rest urant substitution. As to the
charges or rental of wearing apparel and for laundering same, in no case
should the charge be compulsory. That is, if t}ie emolcyee can supply
himself (herself) with uniform -^earing apparel, and is willing to under-
take the individual laundering, the employee should be allowed to do this
without charge. Further, if it was not the custom to make such charges
prior to June 16, 1933, they should certainly not be made now. Where the
renta.1 of "^earing apparel has been a customary charge and where launder-
ing has uniformly been handled by the restaurant, the emoloyer may con-
tinue to make a reasonable charge for such services. In no event nay
deductions be made from oay envelopes. Also note that no other kind of
dedacticn may be made in any other industry. The only allowable deduction
from weekly wages anywhere is that provided for meals m the rpstaurant
substitutions." (Policy Board signed K. Johnston, August 26, 1933).
Work Spoiled Through Carelessness - "The ruling of the Textile Code
Administrator regarding work spoiled through carelessness - 'garments
spoiled thrrogh carelessness of employees real or alleged is one of the
risks of business and no docking of employees for SDoiled work is oer-
raissible' - may well be used as a basis for interpretation in other lines
of business. Deductions for 'work spoiled through carelessness' is one
of the most easily abused practices for the ourrJOSPS of reducing the
minimum wage, and in most cases would be a viola.tion of paragrai^h 8,
PRA. " (October 17, 1933 - W. P. Farnsworth),
"Reductions from wages cannot be npide to covfr loss of timp or loss
of material as a result of carelessness." (October 26, 1933 - Int,
Section) .
DEFECTIVES. PHYSICAL OR ^LENTAL, including Sutler annuat^d EmDloyees, ^ho
are really Pensioners - See "Sheltered Workers",
on
DELICATESSE'T STORES - "Selling food products and serving meals should be
clps:;:^! as grocery stores unless thpy have a/real TPstaurant in connecti
therewith, Vrnen this is true, they should comply with the restaurant
subsuitution, " (Lt. Johnston).
DELI'^^iPRY MEN - "Under PRA, without modification, there is no daily
limit of hours of labor; but a definite maximum limit of 40 hours ner
week, No provision for overtime. Watch substitution for various trades
and industries." (Card #1236).
"The Policy Board has held repeatedly and has specifically insisted
on the inclusion in substitutions that deliverymen be in a category wholly
separate from that of outside salesmen. In general our rule has been a
limitation of 48 hours per week. Outside salesmen are completely exempted
under PRA, Outside salesmen having delivery functions are not to be
classed in the category of outside salesmen to be exe n^ted frf^m m?iximum
working hours." (PRA Policy Board - Robert K. Straus).
9619
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DSNTAL ESTABLISH'.iEKTS - See "Professional Occupations."
DEPARTI'Eira STOUE EI-FLOYEES - "Employees in departnent store restaurants,
"barber shops, beauty shot)S, grocery departments, dry goods and other de-
partments shall work under the substituted provisions to the PRA. for
restaurants, barber shops and beauty shops, grocery stores and retail
stores, as the case may be, provided they devote the major part of their
time to the particular kind of T^ork mentioned. Department store workers
Fho attend to such servicing as repairs to electric refrigerators, radios,
etc., are considered service employees, under Paragraph 2, PEA, Alteration
worlrers in department- stores are under Paragraph 2, PRA r^hen their duties
also include those of a clerical or sales nature; but if the duties are
strictly those of a mechanical artisan nature, they come under Paragraph 3,
PRA. " (Card #1238). . ., ,
DIFFE53NTIALS - "The Policy Board rill not create territorial differentials,,
after substitutions to the PEA are granted; but this matter, of course,
may be adjusted when he-brings .are held in connection vifh formulating the
permanent code. Employers vrho find thrt the lack of a differertial ^orks
a great and unavoidable Hardship, may petition for stays under Paragraph
14, PEA. In allowing differentials as between the North and South, State
boundaries have in most cases been the basis for delimination - not cities
or trade areas thereof. The Policy Board, therefore, rules that retailers
in New Albany, Indiana, though in the same trade area as Louisville, Ky. ,
must pay the Northern rate." (PRA Policy Board - R. K. Straus).
DIRECT IviAIL ATVEETISIHO SFRVICE EiviPLOYEES - See "Comjnercial Duplicating
and Mailing Industry".
DISCHAEGINa EMPLOYEES. - "There is nothing in the Agreement or in the
modified Agreement of August 11, 19.33 which prevents any manufacturer
from replacing incompetent employees with competent ones, providing, of
course, they earn the minimum wage and do not work longer than the maximum
hours." (L.G. Wilson). See also "Incompetent Employees".
DISC:iAR&E OF Et.'iPLOYEES IN VIOLATION OF SECTION 7(A) OF NIRA. WAGES DTJRING
UNEJvlPLOYT.'iENT - The Board voted unanimously to approve the statements of
policy contained in the following memorandum dated January 9, 1934, which
Mr. Hursey read to the Board:
"I am advised by Mrs. B. M. Sterns, Administrative Assistant for the
National Labor Board, that in no case has the National Labor Board attempt-
ed to require payment by an employer to an employee, dischareied because
of union activities, wages for the time such employee was not working.
"The National Labor Board has entered into agreements with certain
employers to reinstate such discharged employees and in those cases in
\vhich the employer failed to carry out such agreement have later required
the employer to pay the discharged employee for the time lost after the
signing of said agreements." (National Compliance Board, January 9, 1934).
9819
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DISTRICT OF COLUTIEIA - "The District of Colum'bia is meant to be excluded
from Southern State listings ^less it is STDecif ically included."
vCard ^1317).
"^n- ^.ST I C EMFLO^n lEKT - "Includes cooks, waitresses, kitchen maids, chamber-
maids, butlers, laundresses, nurses, chauffeurs, gardeners, etc. Vxcmiotion
is based not on occupation, but uron the fact that it is a T^nvate home.
If not a T^rivate home (including homes with a fev boarders) such employees
are not exempt from PEA. '» (Card #1078, C. S. Long).
DRA.?IK5 ACCOUNTS - See "Commission TJorkers".
J)vv annns COTTON BATTIT^^G ICTUSTRY (SUBSTITUTION) - Definition - "The
term 'Dry Goods Cotton Patting Industry' as used herein is defined to
mean the manufacture of garnetted and/or carded cotton fibre put up in
the form of paper-banded and/or similar channels for consumption by the
ultimate purchaser in the making of comforts, q;iilts pads pillows and
other similar articles." (PRA Policy Board, Aug^ist 19. 1933).
EARNINGS - "The phrase 'hourly rate', .Paragraph 6. PRA is clear when ap-
plied to a class of rrork paid on a flat hour or day rate. It must be
interpreted however, to be applied to a class of work which on July 15,
1929 was paid on a piece-rate basis. Every piece-rate is figured and
set on a 'base-rate'. The base-rate is selected as representing the fair
earning per hour of the normal worker. The piece-rate is t he rate per
piece which multiplied by the number of pieces produced by the average
worker will produce not less than the 'base-rate'. Many piece ^ojkers
earn far above the base-rate. Sub-normal workers may earn less than the
base rate. But if the ' base- rate' - were selected as minimum it would be
fair to both employer and worker...and it would gLiarantee all piece-workers
a minim-am wase above what the subnormal piece worker got m 1929 or gets
now. Jurthe?. the selection of the 'base-rate' in 1929 as a minimum under
the PRA, alternative for the 40^ rate, Paragraph 6, PRA, will prevent an
advantage from accruing to an employer who starting from a 'base-rate ,
set his^piece rate low, or 'tight' as the industry phrases it. To take
average earnings as a minimum in such a case would penalize the worker
who worked under a piece-rate that prevented good workers from exceeding
the base-rate and made it impossible for normal or subnormal workers to
reach the base rate." (D. E. Richberg).
TmnCATTONAT. ORGAniZATIOI'S AT-TO INSTITUTIONS - See "Non-Profit Organizations",
^I"CT?TC LIGT--T A-^ vn—R B^USTRY SUB.STITUTION (PARAGRAPHS "B" AITO "C" -
"The Phiiase 'emergency maintenance and repair employees' in paragraph (B)
refers to employees engaged on emergencies within the normal probability
of operation and of a character for which emergency crews pre commonly
maintained. The phrase 'employees engaged on emergency work' in paragrapn
(C) r-fers to emergencies outside the normal probability of operation such
as a severe lightning storm, a sleet storm, a wind storm, a turbine wreck
a boiler explosion, the failure of a transformer, or a break in a gas main,
or a heating main, and other like emergencies." (Compliance Council, ^.KA,
September 21, 1934).
9819
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144
£MB AIMERS - See "Professional Occupations".
£MFLCY£ES HLLEING MORE THAM ONE JC3 - "The IHIA strongly disaporoves of
employees engaging workers whom they know to be already holding down a
full time job elsewhere. The reason for this is quite obvious since the
whole purpose of KIRA is to to increase and spread erauloyment. Employers
who sign the PRA are expected to cooperate in the drive to increase and
spread eraiDloyment to the limit of their ability. Since it is the emoloyer
and not the employee who signs the PRA, there is nothing to restrain an
employee from accepting two jobs (if he is lucky enough to find them)
except his own sense of fair pl^^y toward his fellow worker who is still
unsuccessfully seeking emr)loyment. " (L. C. #52),
Et/TlLYMENTS MOT INTENDED TO 3E COVSREH BY PRA -(Basic Interrjretation #6,
General Johnson, IIRA Bulletin #4 and General Interpretations as indi-
cated), - (1) Professional occupations - "doctors, lawyers, la'" clerks
within the meaninf of State La'PS requiring a clerkship and law students
given specific duties to perform such as preparation of briefs, research
assignments, etc," (Card No, 1296); "registered pharmacists, internes,
nurses, student nurses of all kinds, ministering to human beings,
technicians, graduate veterinary narses" (Card #1340); "embalmers, f^ineral
directors, laboratory workers and apprentices in dental establishments
having had professional training and working in a "orof essional capacity,
radio engineers and engineers in other highly technical t)rofessions,
artists (if their work is creative and not of a roatine nature)" (Card
#1341); "certified public accountants, newspaper photographers, ontometrists, j
doctors of ootoraetry and of optometric science" (Card #1342); "news-
paper reporters, editorial writers, rewrite, men and other members of
editorial staffs, hospital technicians, research technicipins" (Basic
Interpretation #19, General Johnson, NPA Bulletin #4), also see main
heading "Professional Occupations"; (2) Employees of Federal. State and
Local Governments and other Public Institutions and Agencies - "State,
county and municipal governments are not under compulsion to operate
under the PRA, but if they want to display the Blue Eagle they must
comply with PRA" (Card #1268; (3) Agricultural Yi?orkers - "All those era-
ployed by farmers on the farm when they are engaged in growing and preparing
for sale the products of the soil and/or live stock; all labor used in
growing and preparing perishable agricult\iral commodities for market in
original perishable fresh form (labor involved in processing farm pro-
ducts or preparing them for market beyond the stage customarily per-
formed within the area of production, is not to be deemed agricultural
labor); landscape gardeners, nurserymen and greenhouse employees if their
work is agricultural in fact, but in a city establishment they come -under
the provisions of PRA unless substitutions state otherwise" (Card #1186);
(4) Domestic Servants - "Cooks, waitresses, kitchen maids, chambermaids,
butlers, laundresses, nurses, chaufferers, gardeners, etc., in private
homes or homes with a few boarders" (Card #1078); (5) "P^^rsons buying
goods and selling them independently or persons selling solely on
commission (not including persons regularly employed to sell on com-
mission, with a base salary or guaranteed compensation)." Also see
paragraph #4, PRA, for certain employees to which maximum hours fixed in
paragraphs 2 and 3 shall not apply.
9819
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Students and Learners - "The PHA does not a-nr.lv to bona fide students
of vocational schools (including Beauty Shop and Barber Students). The
term 'student' is limited to those who receive no remuneration either by-
wage, comi.iissions or gratuities. Students and learners may be emnloyed
on a rholly commission basis, in vhich case the hour and wage provisions
of the PPA do not a^Dply. " (Card ^1384).
g^^-^YI.'iKT AGEIJCIES OFERi^.TING UED5R THE BLUE EAGLE - "Such agencies
need not limit their activities to prospective employers who are
operating under the Blue Eagle." (Card #1248).
ENGIinERS - See "Professional Occupations".
ESTABLISK:5MT5 WITHOUT EIIFLOYEES - "Owners operating their own establish-
ments without any employees majr obtain the insignia of NBA by signing the
Agreement and a Certificate of Compliance." (Basic Interpretation =*14,
General Johnson, IffiA Bulletin =H).
EXE g^T IVES - See "Paragraph H, Provisions", page 26-
EXP?J:SS AGE]:'ICIES. PiAILROAD - "There are certain cases such as charitable
organizations where any sust)icion of a 'consumer -nressure' because of not
signing is ridiculous. Then other cases such as municipally owned opera-
tions, railroads, etc., where there are complications making it perhaps
'so difficult that the business cannot sign. However, the answer is to
any 'except' question that the President expects everyone to sign. The
difference between NRA. and PRA must be kept constantly in mind. PRA is
a voluntary agreement with the President. Railroad Express Agencies are
capable of signing the PRA." (PRA policy Board or thru Mr. Richberg,
August 25, 1933),
FAI.'ILY STORES - "It is wrong to say that wife and children are excepted
from Paragraphs 2 and 5,.. PEA. No such exception has been or will be
made. If a wife or relation or anybody employed, is 'in with' the owner
as a 'joint venturer' they are in effect co-owners and no employees. If a
relation is act'Oally employed, the employer must conform with the PRA as
to them - the fact that they are related m.akes no difference. One serious
problem, however, is found in the employment of minor children. There is
a serious question as to whether the employer - employee relationship can
supplant the parent - child relationship because of the fact that under
the common law the father is entitled to the er'.rnings of the minor children.
However, a definite ruling to this effect might leave -the door wide open to
wholesale violations of Paragraph =^1, PRA, and it is highly undesirable
that any such ruling be issued. Where you are confronted with this specific
question, it is proper to merely say that if a person is an employee in
fact, they must be treated in conformity with the employer's agreement
with the President," (Lt. Johnston).
FAPJIERS - "Farmers may obtain the Blue Eagle if they comply with the PRA,
Basic Interpretation Ho. 6, NRA Bulletin Ho. 4, in which it is stated that
agricultural labor is not intended to be covered by the PRA means that it
9819
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rras intended th^t ernployers of such lator should not be under any conmul-
sion to sign the PEA. Any farmer in trade or industry rho connlies rrith
the terms of the PRA. as to his agricultural later rviii, of course, be
entitled to the Blue Eagle." (Basic "Exolanation 42, General Johnson, MIA.
Bulletin, #4).
"Farmers engaged in processing '-'holesaling or retailing of goods,
are entitled to che Blue Eagle under Inten^retation *14, even though they
have no ST^nloyees other than purely agricultural eraiDloyees; but if they do
have eTnT)l.>yoas rho assist them in processing, ^wholesaling ori. retailing,
then t.'.iey rjust comply with the wage and hour Drovisions of the PHA as to
such cmnloyees in order to earn the Blue Eagle." (PRA Policy Board or
thru f'r. Kichberg, August 25, 1933). "If farmers have employees which
perform duties of route salesmen and Fish, to obtain the Blue Eagle, they
must loay thsra, and all their other employees engaged in commerical com-
petition wi-;;h the pluid Filk Industry, the minimim wages xirovided for in
the Fliiiu ¥il^c I-vdiistry Substitution, and they must conform to all the
othe--orn--iH;ions of the Fi"A and the substitutions approved for the Fluid
I'lilk Industry." (Lt. Johnston).
"Farmers ot)erating small dairies and employing a few helpers must
place tho'.r milk tilant employees and retail sales employees (including
milk rouue sale'snen) under the PRA and substitution^ thereto, apioroved
for the Fluid Milk Industry, if they desire the ^l.ue Eagle. Their agri-
cullural em-oloyees (including mil'-iers) are not covered by the PRA.."
(Card #1253). - . ■
FEDEPJJj CONTRACTS - See "Contracts (Federal)",
FEED STOKES HAiroi.IF& CtROCERIES - "If the store is urimarily a feed store,
it comes under the Retail Feed Distributing Trade substitution to the PRA..
If it is primarily a grocery store, it comes under the Food & Grocery
Distributing Industry substitution to the PRA.. In the rare case where it
would be impossible to determine what the predominating character of the
store is, there will be no harm done because of the similarity of the two
substitutions."' (Lt. Johnston).
"The selling of food, either for human or animal consumr)tion is not
governed by the Retail Code. That is, such firms should continue opera-
tion -under the PRA. and ap'oroved substitution modifying this until a ver-
manent' code for that loarticular industry has been aiD-oroved. " (F. L. =^9,
November 20, 1933).
FLUID MILK INDUSTRY SUBSTITUTION (PARA.GRA.PH 7) - "A downward readjustment
in coapensstion for emploiTnent in excess of rainimiim '-ages is not TDrohibitedj'
by the"^ substitution for the Fluid Ililk Industry for paragraph 7, PEA -oro-
vid-.d such downward readjustment is. in fact equitable, on the basis of the
cirL-i.irr.sta.nces and conditions which obtain in the employer's mills market-
in.?; fir ea, - (National Industrial Recovery Board, March 23, 1935). "Re-
gular dsliverymen a.nd ' spot '• deliverymen in the Fluid lUlk Industry be
lixit ed to the forty-eight hour week called for in Paragraph 3 of the modi4
fief l-'RA. for the industry." (Advisory Council, Compliance Division, June
6, 1934).
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FOOD FP.QCSSSD'G ESTABLISa-ziBTTS - "Such establishments as coffee roasting,
food canning, etc., come i^jider the PRA pending adoption of s\ibstitute
provisions or permanent code for the industry. However, \intil adoption
o'f a perma-ient code, employees in the jobbing, T.-.holesale or retail sales
departments come under the substitution for the Food S-. Grocery Distributing
Industry.!' (Card #1259-a)
FOOD PBODUCTS - "The Grocery Codes do not apply to strictly manufacturing
operations. L'here maniif ^cturing and selling are engaged in by the same
firm, the selling end only shall come under the Grocery Code." (Card #1259).
FORD AGS'^TS - "Ford agents who have signed the PRA and are com-olying with
its provisions or acce-oted substitutions riiade thereunder '''hich apply to
their employees may display PRA insignia. According to NIRA a permanent
code for a given industry ™hen ap-oroved by the President covers all members
of that industry, not merely signers of the code. It is assumed that an
individual member of an industry is complying with provisions of his code
until proven otherwise." (L. C. #52, SeiDtember 21, 1933).
FUNERAL DIRECTORS - See "Professional Occupations".
"GARAGS miOYEES shall be classified according to, the natu.re of the vork
they are performing. If this ^-'ork is of f service nature, Paragraph 2
applies. If the men are machinists ^r mechanics ^-hose time is devoted
mainly to such work. Paragraph 3 applies. Emploj^ees whose duties a.re
mainly attending to gasoline pump sales, see Petroleum Code."
GARDE" 5RS - "If employed by a private home, are considered domestics, and
therefore er-zemrit from PRA, minimum wages and maximum hours." (L. C. #57,
September 27, 1933).
GAS STATICTT ATTEITDAI'TTS - Paragraph 2, PRA employees. (L.G. Wilson,
August 19, 1933),
GMERAL STORES - "Employees engaged in general stores should not sell other
than food stuffs during hours in excess of 40 in any given week. It is not
reasonable to provide unfair competition for local hardi^'are, dry goods, etc.,
stores by allowing general store employees to sell other than food stuffs
during a full 48 hour period. This does not apply in to^ms of less than
2,500 "'hen such town is not part of a larger trade area. This ruling
should not be taken to limit the hours of operation of any store in any
way." (PRA Policy Board or thru Mr. Richberg, August 25, 1933).
"In cases where general stores have different departments as - flour,
corn neal, salt, dairy and poultry feed, grain and hay - the proprietor
should decide what kind of store is being opera.ted and not try to benefit
himself by adopting the maximum hour provisions of a certain substitution
merely because of the fact that he hatjuens to carry some things which would
fall under that substitution, thereby -oerraitting him to work his emploj'ees
longer hours." (PRA Policy Board). Also see "Department Store EmplOj^ees",
9819
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GIFTS. IxT COrxiECTIQ]; ^'ITH S-LSG - See "Preniims" .
GOLF COUItSE !;'OPJCEas - I'TJorkers on golf courses cxe cl-ep.rl?/ covered 'oj
■parp.["raph 2, PSA, and can in no sense be considered agricultural workers,"
"(L, C. #57, Septernljer 27, 1933). :
GOVEElf.aiTTS. FEIlEPaJj. STATIC. COUIITY OH IIUlTICIPiiL EIPLCYEES - "State,
County and l.funicips.l Governments are not under comvulsion to o-iierate
under provisions of PPiA; "but, if the]^ desire to displaj the Blue Eagle
they must eonrplv i7ith PRiV, " (Card #1268) , "Decision regarding the
placing of Federal Governnent orders for 'laterial and services irith
Blue Eagle contractors e:cclusivel3' or Haiviiig the provisions of PEA
for such contracts Oulj is ao to each PederpJ mrchasing officer."
(Mr. Rich"berg),
GRAILi ELEVATOR (COUITTRY) IHJUSTHY (SUBSTITUTI'":I) - Definition - "The
tern 'Countr;'- Grain Elevator' is hereby defined to be an 'elevator'
engaged in the business or receiving grain in less thrji carloo.d lots
and having ;^err.iane:it elevator and/ or ^-'arehouse facilities fbr receiving
and shipping. grain," (PKii Policy Board, August 24, 1935).
GRATUITOUS EliPLOYIISIIT - "im emloyer operating under the PRA is not
perjMitted to accept the services of anyone gratis. To do so iiould
elir.iin-ate a. paid enrolo-ree." (informal interiTretatim b^^ L. G. ITilson,
August 19, 1933).
GREE: .HOUSE EMPLOYEES - "Greenhouse enoloyees are classed a.s agricultural
T7orl:er". if their vork is agricultural in fact; but in a city estaolish-
nent ■ they cone under provision of the PPlA unles.s. sub stitxit ions sta.te
othervise." (Card #1136), "Employees of greenhouses, i-rhich ;:)roduce
food "oroducts, are to be considered a,gricultural 'Torkors regardless of
the fact the greenhouse be T7ithin or nithout the city limits."
(interpretation Section), "By unanimous vote the Board approved the
follo'7ing classification of greeiihouse '-'orkers, submitted 'hy Messrs,
Ga.lvin and Behney:
"All greenhouse workers e;..nlo''-ed by florits and nurseries shall be
classed as indus .rial Trorkers, subject to: the provisions of PRA and
approved substitubions thereof", (iJationaJ Connliajice' Board, IGIA,
December 19, 1933),
HAiroiCiiPPED Eif?LOY:]ES - See " Sheltered Porkers" .
HATTAIIAli" ISLAIDS - "An^'^ employer in the Ha'.7aiian Islands who r.dshes to
sign the PFiA will be entitled to the Blue Ea,gle, The Administration is
under the iiTroression that there are unusua.l factors in the Hawaiian situ~
ation which might make it inadvisable to build up the sane pressure on
trade or industry to come in under the WRA as is necessary in the States,
Pending a full investigation of the economic and political situation in
HaiiTaii the Administx-ation does not V7ant to make a definite statement of
policy with rega.rd to extension of the Itecovery movement to include the
Hawaiian Islands," (Card #1281)
HOLIDAYS (LEG..\L) - "Legal holidays are those holida^ys recognized by Federal]
and/ or State and/or Municipal Governments, Tflien each holidaj'"S fall in the
middle of the week it is the intent of the PRA that employees who are em-
ployed by the week or month shall not be comr^elled to make up time so lost,
9819
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f'but shall receive their full weekly or monthly pay), when it is customary
to shut down the plant, of-fice or place of business during such holiday."
(Card =*1275). "Legal holidays were taken intf> consideration in maximum
hour and minimum wage clauses of the PRA.. It is not in accordance with the
intent nor spirit of the PRA to require employees to make up time lost on
account of a legal holiday. However there is nothing in the PRA prohibit-
ing such employees as are paid on an hourly or a piece work basis to work
extra hours in order to make up for pay lost on holidays, except that they
shall not work longer than thn raaxim\im hours nerraitted in the PRA and ap-
proved substitutions." (C. S. Long).
HOJ,IE WOEK - See "Sweat Shops".
HORSE DEALERS - "Employees covered by paragraphs 2 and 5, PRA unless they
are in fact agricultural." (Card =*1277)..
HOSPITALS - "re have a ruling from Vv. Richberg, August 18, 1933, being
interpreted, means th-t all hospitals which are distinctly not oiDerated
for profit cannot be forced to apoly for the Blue Eagle. However we
are to ask them to do so on account of the clerical and other service em-
ployees that they have on theri payrolls, especially in view of the fact
that they would be adding to the material sup-port of the President's Re-
employment Program, and would get in return public suDDort accorded all
institutions that are able to apply for the Blue Eagle. There are other
similar institutions, such as churches and charitable organisations which
are evidently non-profit organizations, which would come \inder thise same
policy." (L. G. 'Wilson, August 21, 1933). Also see "Signing the PRA
and Certificate of Complia.ncc".
HOSPITAL TECHNICIANS - See "Professional Occupations".
HOT DOa STAIIDS - "Considered as restaurants under PRA". (Card #1073,
C. S. Long).
HOURLY WORKERS - "Hourly workers are paid for each hour worked. "
(L. C. *46, September 16, 1933).
ICE CFJEAivI I^IAmJEAC TURING ItlDUSTRY - "Regular deliveryraen and 'spot' delivery-
men in the Ice Cream Manufacturing Industry should be limited to 48 hours
per week, as called for in paragraph 3 of the substitution to the PRA ap-
proved for the Industry." (Advisory Cou-icil, Compliance Division, June
6, 1934).
IIMZDIATE TRADE AREA - "Immediate trade area is the area in which there is
direct retail competition. In case of question, the decision shall be made
by the local chamber of commerce or similar organization subject to review
by the State Recovery Board." (Basic Interpretation ^13, General Johnson,
NEA Bulletin. #4).
IMPORTS - "General Hugh S. Johnson, Administrator, TJRA,. has announced the
establishment of an imports division, to handle all requests by industries,
labor or trade organizations, for tariff adjustment, restrictions or pay-
ments of fees. Under NRA, any labor or trade organization which has com-
plied with the terms of the Act may complain to the President th^t articles
are being imported to the detriment of the competitive position of similar
9819
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domestic articles. The President is empowered to have an immediate
investigation, require the paynent of fees or may restrict the importa-
tion of such articles. As a general matter, the industry making the com-
plaint will De expected to make a prima facie case before their request
will "b'e forwarded to the President and requests for relief may he made
only after a code has heen approved." (Card -'^1495).
INCCMPETE'JT EIIPLOYEES - "There is nothing in the Agreement or in any of
the suhstitutions thereto which says an employer may not replace incom-
petent employees with competent ones; provided, the new employees earn the
minimum wage and do not work longer than the maximum hours specified.
However, discharging employees earning substantially over the minimum wage
in order to replace them with new, em.ployees at a lower wage is a violation
of Paragraph 8, PRA. " (Card #1282).
IMDEPETOENT TELEPHOW COMFAMIES STOSTITUTIONS - "Inde-pendent Telephone
'Company employees- who are subject to call 12 hours "oer night, for the
numberof nights thal^- constituted a full week's work at the -narticular
exchange on July 1, 1933, shall be compensa.ted for a full week's work '■
whether or not they have iDerforned actual work totalling the maxim\mi
hours of actual work laerraitted in paragraph (a) af the terms set forth
in the letter dated August 31, 1933 fiFDm the U. S. Independent Telephone
Association .to the Policy Board. Employees subject to call 12 hours "oer
night for less than the number of nights that constituted a full week at
the particular exchange on July 1, 1933, shall be n^id on a' pro rata basis.!'
(Compliance Council, IfflA, September 27, 1934). "Since Clause VII does
not ap"oear in the PRA substitution for IndeiDendent Tele'nhbn'^ Companies and
since it was the intent of the parties concerned that it be omitted, the
only wage clauses governing Independent Telephone Companies are clauses
VI and VIII of the substitution ariproved for Telephone Comxjpnies."
(S. S. Surrey, Legal Division, February 9, 1935).
lEDUSTRIAL WORKEES - See Paragraphs #3 and #6, PEA, pages 24 and 28.
INSIDE SALESl'.iEM V;OBKING SOLELY CN COMIilSSION - "Such emioloyees are exempt
from maximum hour and minimum wage' requirements of the ■ PRA,- if employed
solely on gommission prior to June 16, 1933, see Interpretation 46, How-
ever, transferring a clerk from , salary or part salary to commission basis
after that date, in order to avoid wage or hour provisions of PRA is a
.subterfuge and violates paragraph 8, PRA,"' (Lt. Jolmston) . Also see
"Commission '"''orkers".
IMSIGUIA. BEGULATIOMS GOVERNING USE OF
1. Stamping Insignia on -packaged products - "Whether insignia is
placed upon individual package or outside cartons is optional. The
Insignia, may be shown upon one or the other. In addition, every packer
having the right to use the Insignia should file -^"ith each wholesaler and
retailer a suitable certificate that he is a menber of NRA, which certi-
ficate will be open to inspection by housewives and others who have signed
the pledge in support of the President ' s Reemployment 'Program, and furnish
the retailer with shelf insignia to be displayed with their products.
9819
H
-151-
The idea iDehind this, ruling;; is, that- deal ei's and raaaufapturers should
protect themselves ty, in some way, showing that their products are made
under the Blue Eagle," (Card #1284). See also Adminiscrative Order
#X-138.
2. Se33r?duct_ign - "The WA insignia or 31u3 Eagl:; has "been'off icia^ly
adopted, liy 'the United States G-overnT.ont , to signify ipeitership in the
NRA, 'iTe are 'unatle to authorize' srry^ alteration of .tb.e wording or its
position, form, propgrtion or (^olor combination of the official FEA In-
signia may be reproduced in any solid color employed in the printing of
the container used, Castings, Cc\r-vingc or • impressions may be in the natural
color of material used. For rubber staiaps any solid color may be used,
"TYe are unable to authorize' temporary or other use or re-nroduction.
of the official NEA insignia until the PilA a.nd Certificate of Compliance
or Code is signed rith accepted iJM substitutions, if any, or without
accepted WRA. substitutions, if none. ' ■..■''
"Reproduction of the official Blue Eagle insignia for NRA I'fembers
is authorised by this office to deno'ce NFA member r- hip only, or an as-
sociation Tvith raeinbershi-D. The insignia bearing the word "menber" may
be placed uron such member's equipment, goods, communications and pre-
mises." (Card -'1255).
"The insignia must be used so that, it will clearly indicate to the
general public th^'t' the ■nerson. or firm using the insignia is a member of
the IJR.Il. Further,: era m'"ribei s. may distribute free to employees and con-
sumers, articles- bearing the insignia and carrying the words 'consumer'
or 'employee ' . •
"The insignia is. the property of the United States G-overnment and
cannot be approTDriated in whole or in iDart , for private purposes. Re-
production of the insignia is 'not authorized for -purposes of copyright
or registration as' a trademaik or trade nane/for decoration, or for
private barter e.T<A sale. Authorization is ncfgrarted to indiscriminately
buy or sell, at retail, novt;ities.. buttonS; emblems, pencils, etCc , bear-
ing the 'consumer' insignia- Such sales tre made at the seller.' s own
risk. -Owners coerating their own establishments without any employees
may obtain the insignia of }TBA by signing the Agreement and a Certificate
of Compliance." (Card #1286). • •'■ ' • •
"In connection with the a'bove. Section 5 of the Trade-Mark Laws of
the United States provided 'That no mark by which the goods o.f the owner
of the mark may be distinguished from other goods of the same class
shall be refused registration as a trade-mark on account of the nature
of such woric unless such mark: (a) consists of or com-orises unmoral or
scandalous matter, (b) consists of or comiorises the flag' or coat of arms
pr other insignia of the United States or any simulation. thereof , or any
state or munici-oality or of - - -." (Card #1287). Also see Executive
Order Ho.' 6337 and Release No. 1627..
3 , Attaching Blu^^ Stars to Blue Eaaile Insign-ia for each, adclitional
Em-ployee addei - "This TDractice is not officially authorized, ^tars
must not be lolaced over the Eagle or over its blank background, but must
'ce placed above, below, or to each side of the insignia." (Card =*1287)
9819
■V
-152-
4. White strip across Insif:nia ^-'here an employer is operating
under an exception - See "Stays" and Release No. 495.
lUTERKES (hospital) - See "Professional Occupations".
INVENTORIES - See "Paragraph ^2, PRA, Provisions", page 23.
IRRIGATION PROJECT SuPLOYE~S ".'HO TlfilP TTATE TO RICE FIELDS. Employer
Receiving Proportion of Rice Crop as Remuneration - "Office employees
under Paragraph 2 and 5, PRA; oilers, firemen, and engineers under Para-
graphs 2 or 3, as case may "be." (Lt. Johnston).
JE.."ISH HIGH HOLIDAYS - "are not considered legal holidays unless so re-
cognized "by state or Federal Government. Employees of a trade for vhich
approved hours do not limit daily hours may make up loss of time for
Jewish holidays pro.vided the ireekly hour limitation is not exceeded,"
(L. C. =^45, Septemljer 1-e,— 1933).
LABOR CONTRACTS - See "Contracts (lator union)".
LANDSCAPE GARDMRS - "classed as agricultural wrkers if their work is
agricultural in fact; hut in a city estahlishment they come under the
provisions of the PRA unless substitutions state otherrise." (Card
#1186).
LAUNDRY DELIVERYivIEN - "Laundry deliverymen should be classified as 'Pro-
ductive Labor' (Substitution to the PRA approved for the Laundry Industry)
regardless of whether they are paid by connission, or guarantee plus com-
mission, or straight salary." (National Compliance Board, ITay 22, 1934).
LAUM)RY INDUSTRY SUBSTITUTION DEFINITIONS - "(l) Laundry Establishment
as used herein is defined to include any place where any article of
clothing, napery, blankets, bed-clothing, or fabrics of any kind whatso-
ever are washed and/or ironed for hire provided th-^t nothing included in
this definition shall prevent an individual from pursuing the vocation
of manual labor. (2) Productive Labor is defined to include (a) any em-
ployee, and (b) any owner or manager or members of his family, connected
with or employed by any laundry establishment and actually engaged in
working on or handling articles left for washing and/ or ironing, (3)
Office Employees include all clerical, accounting and service employees
working in the office of any laundry establishment and in retail stores
used as collection and delivery outlets," (PRA Policy Board, August
8, 1933).
LAW CLERKS AND lAff STUDENTS - See "Professional Occupations".
LAW FIRIvIS - "Law firms which have one or more employees are expected to
sign the PRA." (L. G. Wilson, August 14, 1933). •
LAWS. STATE AND F3DERA.L. IN CONFLICT "TITH PRA - "If the provisions of
the PRA or substitutions can be' compiled with without violating existing
law, they do apply; but the NRA cannot abrogate PederRl or Stpte Laws."
(C. S. Long).
9819
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LOIIGSHOP.Si.iEN - See "Stevedores".
LEAE2:EP.S m See "Students & Leprners".
LUNCH FOimTAIMS A^ID LUNCH COb"NTSRS (DRUG STORED - "Lunch fountains or
lunch counters, in drug stores, mien they are i^ell defined departments,
employees of rhich operate exclusively therein, should be governed by
substitutions for the PRA apxiroved for the restaurant industry, nnd the
provisions of sucn substitutions govern with reference to deductions for
food obtained." (F. L. -^9, November 20, 1933).
LUI-ICH HOURS - See "Stagf-ering Hours".
liAIHTENAI'JCE EliPLOYEZS - "(1) Emergency maintenance employees to be exemnt
from maximum hour -orovisions, under Paragrarih 4, PRA, must be in fact
'emergency maintenance'; (2) Under substitutions, T^here the phrase 'main-
tenance and repair cre^vs' is used, it signifies those emT)lo"'ees whose
duties are 'to maintain existing facilities or maintain existing facilities
or machinery in a certain state or condition"and not to r)rovide or con-
struct such facilities or machinery. 'Renair crews' means those employed
to restore to a sound or good state after decay, injury, dilapidation, or
partial destruction. As generally used in PRA and substitutions 'maintain'
is synonymous with" 'keep in repair'." (Card ='*'1497)
MANAGERS - See "Paragraph #4, Provisions", page 25.
iZALS. DEDUCTIONS FOR - See "jJeductions".
L'EAT I.iARKZTING - "Both wholesale and retail meat markets should operate
under the accepted substitutions of the code for the Food and Grocer;/-
Distributors Trade, pending adoration of a retail meat code." (interpre-
tation Section, October IS, 1933).
iJEAT PACKING II.n)USTRY - The Board decided that "paragraph 4 (,f) of the
substitution approved for the I'eat Packing Industry shall be interpreted
to limit to 48 hours -oer week the work of outside salesmen with delivery
duties". (National Compliance Board, November 13, 1933). "Deliver:'^en
in the Keat Packing Industry should be limited to the 48 hour week covering
employees engaged wholly or partially in performing the functions of whole-
sale or retail distribution (Paragraph 4 (f) substitution to PRA approved
for the i:eat Packing Industry'." (Advisory Council, Compliance Division,
June 6, 1934).
MECHANICS. AUTO REPAIR SHOPS - "The hours of labor ire not to be computed
on the basis of actual productive .hours; but on basis of hours spent in
the shop." (PRA Policy Board or thru Mr. Richberg, August 25, 1933),
i.ZEETINGS. SALES - "Sales raeptings if held during working hours, regular
employees shall not be docked for time spent in meeting, A reasonable
araoimt of time spent in compulsory meetings held after working hours
need not be included in computing working hours." (C. S. Long).
Iffil'ITALLY HA1TDICAP:^ED EI.IPLOYEES - See "Defectives".
9819
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lilLK (FLUID') DSLIVIinYIEII- "Regular deliverr/nen aJid,.'s-TOt deliver/men'
in the Fluid Ililk Industry should oe linited to the 48 hour rreek called
for in Parpgraph 3 of the suhstitution to the PRA approved for the
Fluid i;ilk Industry," (Advisory Council, Cocroliance Division, June 6,
1934).
illlTQHS - "Children on the stage or in nitjht cluhs are orohihited fron
Tvor'-inc, if the treatres or night cluos erqoect to display the Ulue Eagle,"
(L, G. Vilson), Also see "ParaGraph #1, PEii" .
i.IINICIPxiL LilPLOnZS - "The 40 hour v/eek does not eooly to municipal
employees hut municipally ovmed utilities are affected. The point is,
if a state or miinicipality or public utility (whether -ouhlicly or private-
ly owned) wants to sign the PPJl rnd get the Eagle, they oust com:oly with
its provisions." (PRil Policy Board or thru. ilr. P.ichberg, AuiTUst 25, 1935).
See "G-overnments" o
irUITICIPALITIZS^ COUl'TY ALP STAE G0VSRIi151:TS - "If not under VRii may
display the IIEA enblen in lTRi\ denonstrntions, but no on nunicipal build-
ings unless the city is volunt-^rily conolj'-ing with Pl'Ul. " (Lt, Johnston).
i.iTJSICI/JIS - "Linited to d. 40 hour week and Paragraph 5, PRA for miniimra
wages." (Card #1310). . .
NATURAL GAS IlIDUS'IRT SL^STITUTIOII - "Gas-conditioning plant operators
whose oresence is essential to the efficient ajid s.Tife operrticn of gas-
conditioning plants, are interpreted to be in the class of station
operrtors and cone under the same Trovisions as to hours of 'laoor as
iDrovided in the substitutions approved for the iJatural Gas Industry."
(PRA policy Board, August 11, 1933)
IIET7SFAPER iuHD I'lAGAZIIlE DISTRI3UTI1TG IliDUSTRY SUTISTITUTIOII - "Carriers
on a wa'je basis shall be "oaid the ninimun wage for a full week in urbpji
and rural sections and an hourly rate based on a 43 hour weel: for less
than a full week," (national Comliance Board, January 25, 1934).
IIETTSPAPIJR PHOTOGRAPHERS - See "Professional Occuisations",
ITIGHT CLUB EITTERTAIIIERS (JUVEIIILE) - See "Actors and llight Club
Entertainers (Juvenile)", "Hinors" and "Paragraph #1, PRA".
IIOIICOi'IliEECIAL EIIPLOYERS - "There is nothing to prevent an enriployer of
labor outside of trades and industries, any professional man or organi-
zation or a,ny non-profit organization, from signing the president's
Reemplojrrnent Agreement and conforming to its rirovisions. This does not
mean, however, that there is anj'' coraimlsion to do so, othe^ than that
resulting from a desire to cooperate, when ajopropriate, with a general
progra.m of shorter hours and higher wa-';es.
To the extent that labor is en-oloyed in occupations comparable
with trades or industries, it is, of course, desirable that similar
conditions -prevail. This applies to -orofer,sional men or organizations,
hosoitals, educa.tional institutions, or any non-profit organization."
(Basic Explanation #1, Gen ral Jolinson, ilRji BuJ.letin #4).
9819
"155-
NON- INDUS TRIAL WORKERS - See "Paragraphs #2 and #5, Provisions", pages
22 and 27, Also see "Signing the PRA and Certificate of Compliance,"
yON-METROFQLITAN FUELISHING- PRINTING AND PRINTING INDUSTRY SUBSTITUTION' -
"Carriers on a wage basis shall be paid the minimum wage specified for
sales employees for a i'ull week and an hourly rate based on 40 hours per
week for less than a full week," (National Compliance Board, January 25,
1934).
NON-PROFI T QRGANI Z AT I ONS - (Philanthropic, Charitable, Educational or
Religious) - "Non-profit organizations are considered as emrloyers for
•the purposes of the agreement," (Basic Interpretation #16, General Johnson,
NRA Bulletin #4), "The PRA is a voluntary measure and may be signed by
anyone whu desires to sign it, including hospitals,, charitable or social
well are organizations. So far as permanent codes are concerned, it is
not expected that codes w:.ll cover hospitals, charitable or social welfare
organizations in general, as they are not engaged in trade or industry.
There is nothing to prevent any of these organizations from signing the
PPJi. and cjnforming to its provisions. This does not mean, however, that
subject to the following sentence, they are under any compulsion to do
so, other th^n that resulting from a desire to cooperate whereever appro-
priate and so far as possible with a general program of reemployment at
shorter hours and higher wages, Wlienever hospitals or social welfare
organizations, even if not organized for profit, actually engage in a
trade or industry, they should sign the PRA, and they may come within the
terms of iDermanent codes." (f^ard #1313),
NURSERYMEN - "Classed as agriculturpl workers if their work is agricultural
in fact; but in a city establishment they come under provisions of the FRA
-unless substitutions state otherwise," (Card #1186). See also "Greenhouse
EmTDloyees",
NURSES - See"Professional Occupations".
PPPIGE BUILDING INDUSTRY SUBSTITUTION ^ "The term 'watchmen' as used
in the substitution for PRA for the Office Building Industry includes
employees whose duties are primarily those of watchmen but who in addition
operate elevators for accomodation of tenants entering and leaving after
usual working ho-urs, and who also perform light porter work,"
(Compliance Council, NPA., October 1, 1934).
OFFICE ElgLOYEES (LAUNDRY) - See "Laundry Industry Substitution Definitions",
OIL COMPANY CONTRACTS - See "Contracts (Oil Companies)",
OPTOMETRISTS - See "Professional OccUpgtions",
G\.NER- OPERATES STORES - "Owners operating their own establishments without
any employees may obtain the insignia of NRA by signing the Agreement and
a Certificate uf Compliance," (Basic Interpretation #14, Gsneral Johnson,
NRA Bulletin #4), aIso see "Family Stores",
PRA PARAGRAPHS (OFFICIAL EXPLANATIONS)
The following "Official Explanations of the PRA" were incorporated
in NRA Bulletin #4, approved by General Johnsun and T, S. Hammond,
Executive Director, President's Reemployment Program.
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FAxlAG-?..'-PH -yl, PHA (Child Labor) -"This means that after August 31, 1?33,
you ajree not to enroloy 3nj children under 14 years old in any l:ind of busi-
ness. You nay emiDloy children TDet"een.l4 and 16 years old, but only for 3
hours a d;?y end those hours :P::-st be oot 'een 7.' in the morning and 7 at night,
and arranged so as not to interfere, with school. You agree not to- employ
any children under 16 years old in a manufacturing or mechanical industry at
any tine."
FAHAQ-RAPH #2, PHA. (Hours applicable to ITon-Industrial Workers and Store or
Service Q-oerations)' - "This means that yoU' agree not to work any of the
kinds of employees listed in this lara^graph (except outside salesmen) for
more than 40 hours a i^rcek. This paragraph covers all employees e:-:ce;ot fact-
ory workers, mechanical 'workers and artisans. However, no limit on hours anc
no minimu.m ^-age applies, to ourely agricultural^ labor, domestic serv?iits, or
■oersons working for you solely on a commission basis; but if you have -oer-
sons working for you who are guaranteed a base pay in addition to their com-
mission, then their base pay plus commissions jmist equal the minimum wage.
"This Agreement sets no naxitnum on the number of hours you may keep
your business open. You. agree not to keep your ■'fholesale, retail or service
establishment open less thaii 52 hours a ^--eek unless it was open less than
52 hours a "eek before July 1, 1935; Even then you agree to keep it open as
long as you used to keep it open before July 1 Of course, if you have al-
ways kept your store open shorter hours in the summ.er months you can continue
to do so this summer, but you should "oay ..3^our , employees the same amount each
week that they "ill get when you keep your r-tore open full time.
The "tores w'i'th more thrn t"o employees which remain open the longest
are contrijuting the most to carrying out the pur'jose of -the A)^;reement.
The stores with two or less employees -hich can be open only the minimum
noimber of hours required are doing the most to fulfill their part."
FARACrPAPH 7^3, PEA (Maxiraom Hours applicable to Industrial TJorkers - Factory
or liechanical Y?orker or Artisan) - "This means that if you are employing
factory or mecha,nical workers or. artisans, you agree not to work them more
than 35 hours a week and not more than 8 hours in any one day.
"Wlien you have "more tl:;ian the usual amount of work to do and can't get
additional -'orkers, you may employ this class of employees up to 40 hours
a week in any 6 weeks, but even in this case you rmst not work them more
than 8- hours a day."
PABAG3APH #4, PRA (Employees Exempted from Maximum Hour Provisions) -"This
means that there are certain employees whom you may work longer hours than
are allowed by paragraphs 2 and 3, P.P. A.
"If your business is in a small town (population less than 2,500 by the
1930 census) and you do not employ more than two i^ursona, the limit on hours
does not apply to these employees. If your town, is really a part of a larger
business eommiraity, the limit on hours does, apply to these employees.
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"The limit on hours does not aprly to your employees who are wholly
or primarily mpnagers or executives, as long as they receive $35 a week.
Professional persons, like doctors, lawyers, registered pharmacists and
nurses, may be employed without any limit on hours.
wo
"Where employees are doing emergency jobs of maintenance or repair
. rk, they may be kept on the job for longer hours, but you agree to pay
them at leest time and one third for hours worked over .the limits set in
paragraphs 2 and 3, FEA,
"There are a few very special cases where highly skilled workers must
be allowed to work more than the limit of hours in order to keep up output
on continuous process, but, here again, you agree to pay them at least time
ard one third for the hours they work over the limits set in paragraphs 2
and 3, FRA.. "
PARAGRAPH #5, FRA (Minimum Wages applicable to Non-Industrial Workers -
Paragraph #2 Employees) - "Thi-s sets out the schadule of minimum wages which
you agree to pay all emtloyees, except factory or mechanical workers or
artisans. The wages are set out, in terms of dollars per week, but if your
employees are paid by the hour, you may use the following schedule:
Place of business
(Population by 1930 Census) Minimum wage
In cities c-f 500, COO or over. . 37-g cents per hour
In' cities of betv?een 250,000 .^nd 500,000 , , . 36^ cents per hour
In cities of between 2,500 and. 250,000 .... 35 cents per hour
"If your business is in a town of less than 2,500 population, you
agree to raise all wages at least 20 .percent. If raising all wages 20
percent causes you to loay over $12 per week, then you need only pay the
$12 per week,
"If there is any doubt in your mind as to whether your business is
in the 'imnediate trade area' of a city, you should ask your local chamber
of commerce or other similar organization for a decision on the matter.
The general rule is that the 'immediate trade area' is the area in which
there is direct retail competition,"
PARAG-KAPE #6. PEA (Minimum Vfeges apr)licable to Industrial Workers -
Paragraph ifZ Employees) - "This fixes the minimum wage which you agree to
pay factory an,d mechanical workers and artisans. The following schedule
may help you to find out the proper rate:
If the rate for the same kind of work in
the same community on July 15, 1929, The minimum rate which you
was - agree to pay is -
More than 40 cents an hour , 40 cents an hour
30 cents to 40 cents an hour The July 15, 1929, hourly rate
Less than 30 cents an hour 30 cents an- hour
"Instead of paying by the hour, you may pay by the week at a rate
which gives the same weekly earnings for a week of 35 hours. For example,
instead of 40 cents an hour, you may pay $14 per week,
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"If you had a contract on ur before August 1, 1935, with a learner
or apprentice, you do not have to pay him the miniinum wage, but no one
should be classed as a learner or an apprentice who has ever been employed
as a regular worker in yo\ir industry,
PAAAGRAFH #7, VRA (Compensation for Employment) - "Paragraph #7 means,
first, that comrensation of employees above the minimum wage group (whether
now fixed by the hour, day, v/eek, or otherwise) shall not be reduced, either
to compensate the employer for increases that he may be required to make in
the minimum v/age group in order to comply with the agreement, or to turn
this reemployment agreement into a mere share- the-work movement without a
resulting increase of total purchasing:; power. This first provision of
paragraph 7 is a general statement of what shall not be done,
"The rest of Paragra-nh 7 is a particular statement of v?hat shall be
done, which is that rates of pay for employees a.bove the minimum wage
group shall be increased by 'equitable readjustments'. No hard and fast
rule can be laid down for such readjustments, because the vari-ations in
rates of pay and hours of work would make the application of nny formula
unjust in thousands of cases. We present, however, the folio i'ing examples
of the need for and methods ot such readjustments:
"Example 1. Employeen now wjrking 40 hours per week in factories.
When hours are reduced to ?5, the present 'rate per hour if increased one
seventh would provide the same compensation for a normal week's work as
before,
"Example 2, Employees now working 60 hours per week in factories.
When hours are reduced to 35, a rate per hour if increased one seventh
might be insufficient to provide proper compensation. But, to increase
the rate by five sevenths, in order to provide the same compensation for
35 hours as previously earned in 50, might impose an inequitable burden
on the employer. The 60-hcur week might have been in effect because of
a rush of business, although a 40-hour week might have been normal
practice at the same hourly wage. Seasonal or temporary increases in
hours now in effect, or recent increases in wages, are proper factors to
be taken into consideration in making equitable readjustments,
"The policy governing the readjustment of wages of all employees
in what may be termed, the, higher wage groups requires, not a fixed rule,
but 'equitable readjustment'.- in view of long standing differentials in
pay schedules, with due regard for the fact that pay rolls are being
heavily increased and that employees will receive benefits from shorter
hours, from the reemployment of other workers, and from stabilized employ-
ment which may increase their yearly earnings.
"The foregoing examples .indicate the necescity of dealing with this
problem of 'equitable readjustment' of ' the higher rates of prr on the
basis of consideration of the varying circumstances ano condi''ions of the
thousands of enterprises and employments' involved. Any attempt to define
a ^aational standard would be productive of widespread injustice. The
National Recovery Administration will, through local agencies, observe
carefully the manner in which employers comply with their agreement to
make 'equitable readjustments', and will take from time to time and annoxmce
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from Washir.-gton such action as may be necessary to correct clear cases of
unfairness and to aid conscientious employers in carrying out in good
faith the terms of the agreement,
"When an era-ployer signs rn agreement and certifies xiis compliance
and also joins in the r.ubmission of a Code of Fair Competition before
September 1, 1933, his determination of what are 'equitable readjustments'
should be accepted at least prior to September 1, as a prima facie com-
pliance 7'ith his agreement, pending action by WAA upon the code submitted,
or rny .other action by NRA. taken to insure proper interpretations or ap-
plications of agreements. This rill afford NKA an opportunity to survey
the general results of the reemployment program and to iron out difficulties
and misunderstandings over agreements that are of a substantial character,"
(Basic Interpretation #1, July 28, 1933, General Johnson, NRA Bulletin #4)«
"Paragraph #7 prevents the reduction of compensation in excess of
the minimum, whether. it is paid by the hour, day, week, or month.
"Therefore, ar employee previously paid by the day, week, or month
will receive as much for the shorter day, week, or month,
"An employee previously paid by the hour ?/ill receive as much per
hour, but as shortening his hours will reduce his actual earnings per
day or i^eek his compensation per hour is to be increased by an equitable
readjustment,
"There is no fixed rule which can be applied to determine what is
an equitable readjustment. In general, it will be equitable to figure
what the employee would have earned at his previous rate per hour in a
normal week in the industry, and then to increase the hourly rate so as
to give him substantially the same compensation as he would have gotten
for that normal week. Bat cmsideration laust be given to other factors,
including: Is the existing rate hif-:h or low compared with the average
rate paid in the industrv? ,iill the resulting adjustment result in an
unfair competitive advantage to otner employers or other trades or
industries? 7/111 a long-standing wage differential be lost if there is
no increase in the existing rate?
Union Contracts
"Tfliere an employer is bound by the terras of a contract with a
labor oragnization entered into as the result of bona fide collective
bargaining and he is unable to effect a change in such contract by agree-
ment in order to comply with the terms of the President's Reemployment
Agreement, he may certify his compliance with the President's Agreement
with the following exception: 'Except as required to comply with the terras
of agreement in effect between the undersigned and
^ . , (name of labor '
orgajiization)
"It should be understood that nis exception can be made only in the
case of a contract not subject to change at the discretion of the employer
and then only after a. certified copy of the contract has been filed with
the National Recovery Administration and its approval has been given to
the exception stated.
9819
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"When application is made for anprovrl of such an exception, the
application will be handled by the National Recovery Administration in the
same manner as applications for relief in cases of individual hardshi-o filed
under paragraph 14 of the President's He employment Agreement, provided,
however, that the approval of a trp.de association or other representative
organization will not be required." (Basic Interpretation #20, August 3,
1933, General Johnson, ¥RA Bulletin #4).
• "The follo'j7ing paragraph is added at the end of interpretation no, 20:
, "When application is made for approval of such an exception, the
application will he handled by the National Recovery Administration in
the same manner as applications for relief in cases of individual hardship
filed under paragraph 14 of the President's Reemployment Agreement: Pro-
vided, however. That the approval of a trade association or other repre-
sentative organization will not be required,
"With this addition, the last -three paragraphs of interpretation
no, 20 are as follows:
"i7here an employer is bound < by the terms of a contract with a
labor organization entered into as the result of bona, fide cc_lective
bargaining and he is unable to effect a change in such contract by
agreement in order to comply with the terms of the President's Agreement
with the following exception: 'Except as required to comply with the
terms of agreement in effect between the undersigned and
(Karae of labor organization)
"It should be understood that his exception can be made only in the
case of a contract not subject to change at the discretion of the employer
and then only after a certified copy of the contract has been filed with
the National Recovery Administration and its approval has been given to
the exception stated,
"When application is made for approval of such an exception, tne
application will bo handled by the National Recovery Administration in the
same manner as applications for relief in cases of individual hardship
filed under paragraph 14 of the President's Reemployment Agreement: Pro-
vided, however. That the approval of a trade association or other repre-
sentative orgaJiization will not be required." (Basic Interpretation #21,
August 21, 1933, General Johnson, NPA Bulletin #4). Also see "Contracts
(Labor Union)" and "Contracts".
PARAGRAPH #8, PRA ( An ti subterfuge) - "This is the heart of the whole
Agreement, The President's Plan is to cure this depression by increasing
purchasing power. You can help him put this plan over by voluntarily
signing this Agreement to shorten hours and raise wages. There is no
FORCE to compel you to sign this Agreement, It is not LAW. It is a
personal Agreement between you and the President. The Presidont expects
you to do everything in your power to carry out the spirit oi the Agree-
ment after you sign it. This means wholehearted cooperation bir really
EARNING the Blue Eagle - not by just getting it and then not doing your
part,
9819
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"It would be a 'subterfuge to frustrfte tne spirit pnd intent of
this Agreement' to sign it prd then put all of your employees on a straight
comraission bpsis - or any other tx'ick to avoid doinis; vhp.t yuu oroiuise to do,"
FAR\CrR:^H #9, F'RA (Ahtiprof iteering) - "The object ^i' this -prrpigraph is to
prevent DroriteerJng or Gueculation, so th«3t prices "ill not rise faster
thn.n purchasing po\-er, and destroy the President's Pl;'.n, The danger to be
avoided was pointed oat' by the Pre^^ident on June 16, 1933, in the statement
which he made on signii-g the Recovery Act. He said, then:
'If re nov inflate prices as last and as far as we increase wages,
the whole •oroject vill be set at naugfit. We cannot hope for the full
effect of this plan unless, in these first critical m-.nths, and, even
at the expense of full initial profits, we defer -nx'icc increases as
long as poGsiblec If ve can thus start ■\ strong, sound upward spiral
of business activity our industries will have little doubt of blacl'-ink
operations in the last quarter of this year. The pent-un demand of this
people is very great, and if ve can release it on so broad p. front, we
need not fear a lagging' recovery. There is greater danger of too much
feverish speed. '
"If you were selling your laerchandise on July 1, 1933, below cost,
you may take your cost price on 'that date as the basis for determining
the allowaole increase under this uaragraph, "
FAR^C-5AFH #10^ PPA (Cooperation) - ''The success of the President's
Re employ me lit Agr^d'nen'- I'rogfc'.ra deponc^s upon public s"a.pport going to
those who raise wages and sli'^rten hours in accordance v.dth this agreement,
in order to reray tnem for the extra expense v/hi oh they have incurred in
doing their parts "
FAKAG-MPH #11, P.?J\. (Codes) - "This agreement is a temporary measure to
tide over the ti:ae frcn now until all eirr)lo/ers and erarloy^es can cooperate
under codes oi fair competition under the l^ationfl Industrial Recovery Act,
You agree, in this paragraph, to do all /ou can to have a code submitted
for your trade or incustrv before September 1, 1933,''
PAM&EAPH #12, FljA (Appropriate Adj^st;ii£nts) --"This agreement will,
usually, increase the costs uf those who sign it. The purpose of this
paragraph is to pass any svich increased costs along from one signer to
another, and so on to the consumer.
"If you have a contract Lade before June 16, 1933, to buy goods at
a fixed price, you agree to make an arrangement with your seller so that
you pay him for the extra ccr.t to him caused ty his having signed this
agreement, or having come under a code appioved by the President,
"In some cases the final buyer is the Government, which, under
eKis.ting lai-, is generally not allowed to pay more than the contract price.
The President has anno-jnced that he will recommend- to Congress that appro-
priations oe made to allow the Government to play its part by paying
Government contractors who have signed the a=;ree;.ient for their increased
costs. The President nas also appe-led to the States and cities to take
action permitting them to do likewise.
9819
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"You should hc've no fenr that, because your buyer h?s not signed, you
will be left with the increased cost on you alone. The President expects
every emnloyer to sign this agreement." Also see "Contracts'^ "Contracts
(Feceral)", "Contracts for Goods and/jr Services" and "Public Act #369", ;
FAAAGilAFH #13. PEA (Termination of and Substitutions to the FaA) -
"As pointed out in the explanation of -paragraph #11, PKA, the President
plans to have all Dusiness govern itself under codes, and therefore codes
should be promptly' submitted. If FLA finds that the wages and hours
provisions of a code v/hich has been submitted are within the spirit
of this agreement, KHA will authorize your industry to operate -under
those -provisions rather than under the wages and hours provisions of
this agreement," (Official Explanation, General Johnson, NRA Bulletin #4),
"All employers are expected to sign the PRA, whether codes have been
submitted to NEA or not (unless such codes have already "been approved);
but after the President has ap-proved z code, or after InTSA has approved
of the substitution of the provisions of a code fur afireements in the
trade or industry covered, conformity with the jcoda- provisions by an
employer will be regarded as compliance with his individual agreement,"
FAIiAGRAPH #14, FPJV (Exceptions) - "If you really want to do your part
in the President '"s Eeemr)loyment program, sign this Afi'reement. If some
particular -cart oi this Agreement causes you, as an individual emrloyer,
great and unavoidable hardship, you raay obtain relief by taking the
followin,: steps:
"(a) Sign the agreement and m^il it to your District Office of
the Department of Commerce,
"(b) Pre-pare a -^-^etition to FEA setting out the reasons why you
cannot comply \fith certain -provisions, ^nd requesting that an exception
be made in your case,
"(c) Have this petition approved by vour trade association. If
there is no Trade Association for your business have your petition ap-
proved by your local Chamber of Commerce or other representative organi-
zation designated by NBA.
"(d) If the Trade Association or other urganizaticn approves your
petition, send it to FEA in Washington with this approval,
"(e) Comply with all the provisions of the Agreement except the one
yju are petitioning to have excepted,
"(f) Sign the certificate of compliance, adding to it the following
clause: 'Except for those interim provisions regarding wages and hours
which have been approved by tne Trade Association',
Deliver this certificate of compliance to your p>ist office. You will
receive a Blue Eagle, but before displaying it, you must put a, white
bar across its breast vdth the word 'provisional' on it. If ''■our
petition is finally approved by IIEA you may take the tar down. If your !
petition is not approved by KEA you ;aust cjmply with the agreement in
full.
9819
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"The i?ct th?t FRA. has c-">nsenbed. to the sabstitution of the wages
and hours provisions of the cede suV-raitted oy your tr.-^.de or industry,
for the wa^es and hours prcv3.rions rf the President's Aereement does
not deprive you of your remedy under this paragra-Dh,
"If vou feel that even v/ith the substituted provisions, the
President's Agre-ment vvill cause yuUf individually, a §,reat and unavoid-
able hard-^hip, you should follow tno steps outlined in this paragrn.ph.
When you sitin the Certilicate of Coiupliance you should add the following:
'To the extent of URA conser.t as announced, we hr-^ve c^inrc.lied with the
President's A£;reeinent by corplyixig 7/ith the substituted pro/isions of
the code submitted by the Trac"?/ Inducr.ry ' ; and 'Except
for those interim provisions regf>riing wa^es and hours which have been
approved by the Trade Associntiono '
"A person who believes that some particular provision in the Agree-
ment', because of peculifjf circu.^star>ces, vdll create fr;reat and unavoid-
able hare '-■hip soald prepare n petit: en to N.tA asking lor a stay of this
provision as to hini, Ks sl:oa"'d then sub.'pJ t thi;- petition to the trade
associati-'n of his industry^ or, if there is none, to tne local chamber
of cominerce or similar reprersenbstive organization, designated by NKA for
its aporo^sl. The v/r^tten ar.proval of thQ trade, assoo^iation or siich other
organization will be accepted bj !J?A as the basis for a temporary rtay,
without f-arther investigation, pending dscision by K-<A. The pefition
must contain a prcmioe to abj.de by FHA's decision, so that if NEA decides
against t-;e -petitioner he miist -ive effect to the provision v^hich was
stayed fr-.im the dat» of the decision of Wr.A^
"The retiti -n and approval of the trade association or other
organization^ as pr.escvlbecl above, should be forwarded to NKA in
Washington-; and the errployer's signed copy of the President's Reemployment
Agreement should be s.?nt .1,0. the Tistrict Office of tns i^epartiaeut
of Commerce, After complyint; r^ith theje reqi .irsments the employer will
be entitled to receive and-display tne ]:<lus . Lagle by delivering his
certificate of compliance to his post Office.
"Paragraph 14 if not ''intended to pi ovide for group exceptions,
but only to .^eet cases of individui.al hardship,"
PAMlvERS - "j3oha fide partners in rn enterprise are not employees and
the partnership does net have to c 3mple v/iori the ?RA as to the individual
working partners, Howevert rrtch subterfugfce " (Lt, Johnston), "Partners
working in. coop'^rative establishments under agree...ent to pro-rate the
proceeds in proportion to the ^lass jf work assinged to each co-(»7orker
are classed as uvners and are not covered by the minir;.um wage provisions
of the PhA. " (e, a. Cross, Legal Division),
PART-TIME .EMPLOYEES - "The minimum wage for a part-time worker in an
emrloymen''- descrioed in paragr-iph 2. PEA, is a wage such that if the
employee "^vorked at that 'r^age f ;r a full veek of 40 h.^urs he would receive
the icLninium weekly wage prescribed f jr hin by tie Agieement. The niinimam
wage for a part-time worker in an employient described in paragraph 5,
PEA. is the mini^aia wage per hour trescrioed Dy para'jraph 6, PEA.,'' (Basic
Interpretation #10, General Johnson, 17RA. Bulletin #4), "Two reg-ular
employees, plus any fraction of an employee because jf a part-time arrange-
ment is 'more than two persons' for the purp.se of Paragraph 4, Pr.A which
9819
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'says 'maximum hours - - sh?ll not sv^lr to employees in estatlishments
employing n^t more than two persons in tov^ns of less than 2,500
population - - - ' " (Lt, Jo?mston) , See also Executive Order #5710,
PENSIONED EMPLOYEES - See "Sheltered '.workers",
PHILANTHROPIC GHGMIZATIQNS - See "fon- profit Organizations".
PHOTO-FINISHING INDUSTRY (SUBSTITUTION) - Definition - "The term
'photo-f inisning (sometimes known as amateur finishing or as developing
and printing) as used herein is defined to mean the service of develop^-
ing exposed photographic rcli films, plates, cut films, or film packs,
and the making of prints, enlargements, and photographic specialties
therefrnra. '" (PRA Policy Board, Aureus t SO, 1933).
EfffflOCrRAFHIC ARTISTS AND PHOTOGRAPHERS - See "Pr.:)fessi^nal Occupations",
PHOTOGRAPHIC MANUFACTURING INDUSTRY SUBSTITUTION - "The term 'employees'
as used herein shall include all persons Forking for wages and employed
in the conduct of such operations, excepting th^se persons ^ho serve in
executive, administrative, supervisor'/, sales and/^r technical capacities."
(FRA Policy Bsard, August 4, 1933).
PHYSICALLY H^gJDlCAPPED EMPLOYEES - See "Sheltered V/orkers".
FHYSICIANS - "All employees of doctors are subject to the PRA. Employees
who are in fact professionals, such as internes, nurses and technicians,
are not subject to the maximum huur provisions of the PRA, but are subject
to minimum wages. Non-professional employees, of ci.urse. are subject to
both maximum hours and minimum wage provisions. Student p.urses are not
subject to maximum h/ars, but if emoloyed in a doctor's office, they are
subject to minimum wages. If the doctor employs not over t^^'o persons and
his office is located in a t.jwn jf less than ?,500 population which is
not a part of a larger trade area, his n-'n-prof essional employees are not
subject to maximum hour provi.sions. Physicians in these snialler communities
should raise the wages or salaries 'f all employees, whether professional
or n n-prjf essional, by at least 20;i, if they are below the minimum
specified in the PRA. If such increase of 2C)fo brings the wage or salary
over the minimum, then the physician need only pay the minimum. All of
the ab'jve is contingent upon the desire of such physicians to comply with
the FRA and display the Blue Eagle." (T, S. Hammond, September 14, 1933),
PIECE VV'0R1{ - See "Earnings".
POPULATIONS - "In cases where the 1930 Federal Census shows that a town
at that time had a population of over ?,500, and where, the population has
subsequently shrunk to below 2,500, it has been ruled that upon certifi-
cation of the Mayor, Town Clerk, or ii^tiier competent authority, that the
present population varies from the 1930 Federal Census, the certification,
rather than the census, governs for purposes of classil ication under the
TRA." (Card #1333).
"In cases where several toi'/ns of substantiallv the sa-ne population
are in the immediate vicinity of each" other and '"here one of tnese to"'ns
9819
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has' a Chamber of Commerce and a Con-Dlipnce Board, the Chamber -.f
Commerce pnd NEA Complipnce '"card should -use every efiort tc> induce
neighboring tOT'ns to allow these organizations in the to^-n or towns
to include wther towhs mentiured within its trade area, by discussions
with NiiA representatives ^^r Comnliance Boards in the i..ther towns (if
any); other-rise by commmicatin..^^ with and ascertpining the ^dshes of
a majority jf voters ar.d pro'iinent citizens of the adjoining towns.
Every attempt' should be made to reach a sou:i.d and unbiased decision
locally, concerning trace are? quesciuns.. Shou"! d it be im-DOssible to
reach such a decision because of OToposition on the part of adjoining
to-^ns, the question, of course^ must be rof erred to the State Recovery
Board f-.r prbitrcty decisionr '' (Card ^^1454)0
P0I172HS - ''Cjvered by Paragraphs 2 and 5, FriA unless specifically mentioned
in a substitution." (Card #1334),
POST OZFICE EI'-JFLOYEES VtHIRD CLASS POST OjTICES) - "First Assistant
Postmaster General Joseph Or, O'KariOuev states under date of September 6
that 'while clerical erroloyees in thira clrss post offices are appointed
by the postmaster arid are tuiaer his direct -supervision-, their salaries
are paid from allowances autaorized by the Department out of Government
funds* They are, 'therefore, considered Federal employees and are subject
t'o such compensation deductions under the Act of March 20, -1933, as are
applicable to a.l^. oth'e? Federal emplovees'. In vie"^ ..f the foregoing,
it is n^t reces3i-ry f or .thir.i class P^stnasters to observe maximam hour
and minimujui w&fe provicslons 'dth respect to their employees." (Card
#1503) c
POTATO IKSPECTG'RS - '-If potato iTiSpectors vTork in the field or on the
farm, they are under the Agricultural Adjust:iient Admiaistration, and are
n^.t c;oncer:aed with FSA.< If they pru potato inspectors in the city or in
warehouses, they come under Pararraphs 2 and 5,- FEA.' They are not con-
sidered professional workers." (Ce S, L-ng).
PF.£MTUt.iS, PxvIZES- ETCc - "Fre:aiuiiis, prizes, etc., are sales promotion
aids and have nothing to du ^with va.-'es anc. h.urs under the PRA, except
as forbidden in substituted provisions "i:':r a particular business."
(C. S. Long).
P3.ICE FIXII-"G - "Under the FRA. the NIIA does not favor any price-fixing
agreements " (Caj'd #1336).
PxtlSOy LABOR - "The PRA does n-.t apply directly to prison labor products
wnicn compete with private industries, Ttie PPJ\. '"•as not intended t j affect
the policy of the se^-er-l states on pri.son labor in any way. The iTiiA has
no established policy on this point. However, since all state institutions
will find it impossible to sigh the PRA, prison made go^ds in-tne public
market --'ill n.t bear the Blue Eagle and thus ind.irectly there is a very
definite effect," (Lt. Johnston) c
FRIVid:E rSTECT?"^ES - "It is n'.t advisable to> extend the definition
'Professional' as used in Paragraph 4, FPA beyond the recognized,
established professions. A, Piivate detective, irorking for a private
agencv, is an employee included in Paragraphs #2 and #5, PEA,, and
should not be worked more th^n the raaxinium hours specified, nor snould
9819
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he Ise paid less than the minimum wage provided in Paragraph #5, PRA.
However, if such a private detective is receiving more than $35, per
week, he is pr^^bably in such a position of sole responsibility that he
would foil in the 'executive' class and, therefore, exempt from maximum
hour provisii'ns. If he d.oes not receive as much as $35. per ^eek, he is
not within this class. If it is necesrary for such an employee to work
continuously on the same case, so that it will be impossible to restrict
the number 'f hours '^'hich he should w^rk, he should receive time and
one-third," (Card #1483).
FRODUCTIVE LA30E (lAOTDxlY) - See "Laundry Industry Substitution
Def initi jns".
F5.0FESSI0NAL OCCITATIQNS - "It is n^t the intent of the PEA to compel
professional people, as employers, to c^me under the Agreement; but it is
the desire ^f the Administration that such employers shall cooperate with
the Program by complying i''ith the pr^ visions of the FRA. In this con-
nection it should be noted that employees who are in fact professional
people- such as internes, nurses and technicians - are not subject to
the maximum hour provisions, PL.A, but they are subject to minimum wage
requirements, Non-Professional employees, of course, are subject to
both maximum hour and miniimim wage provisins," (Lt. Johnston and
C, S. Long). Also see "Employments n ^t Intended to be Covered by the
PEA" and "Signing the PrJl and Certilicate of Comnliance, "
Artists (Including Commercial Artists) - "Ii their work is creative,
they may be called prof essi'^nals; but if their it'ork is of a routine
nature, such as filling in, colorin;.'', lettering, etc, t;iey are subject
to maximum hours provisions oi" tne P^.A. " (Lt. Johnston),
Certified Public Accountants - "are considered as professionals
under Paragraph #6, PfJl. The Certified Public Accountants themselves
are considered professionals, but theii- j"anior accountants and clerical
helpers are under Paragraph #2, PPJ^, pending adoption .f a permanent
code -r substitute provisi .-ns for the Public Accounting business,"
(C. S. Long)
Dental Establisliments - "Laborat rv ^-orkers and apprentices in
dental estpblishiaents are not considered prof essionrls "uncer basic
Interpretat i'jn #6 and #19, l-IRA' "(ulletin #4, unless in fact thev have had
professional training?; and are workin • in a professional capacity,"
(Card #1341),
?uneral Directors and Embalmers - "(l) Einbalmers are 'professional
person'; employed in professions', (?) Funeral Directors are either the
same as 'Embalmers' or a:re 'employees in a managerial or executive
capacity, who now receive more than $3;^, per '"eek'. In any event, we
feel that these two classes should be exemrt from maximum hour provisions
of PEA." (F'iA Policy ^oard).
Hospital Techniciars, Internes, neseairch Technicians - "are in-
cluded among professional persons within the meaning of Paragraph #4,
PEA." (Basic Interpretation #19, llhA julletin #4),
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Law clerks snd Law Students - "A law clerk, within the meaning
of State Laws requiring: a clerkship, is in p professional rather than
a clerical status ?nd is exempt frum the mrxinnim houi' provisions but
not the miniraum wage provisions. Ho^^'ever, lawyers who evade the intent
of the Agreement by usin-S" law clerks, who have passed the Bar examination,
as filing clerks, stenographers, etc., (instead of in serving processes,
assisting in the T,re->»aring' of briefs, etc.) and working them over 40 hours
a week, are violating Paragraph #8, PEA. This subject has been brought
up many times and it is highly undesirable to issue a definite ruling on
the point because of s^me very difficult legal problem which would probably
require a ruling adverse to the intent of the Agreement." (Lt. Johnston).
"Students reading law in a law office do not have to be paid the
minimum wage if they are not employees. If they are given specific
duties to perform such as preparation of briefs, research assignments,
etc., they are then professional persons employed in their profession
and although exempt from maximum hour provisions they are not exempt
from rainimam wage provisions. If they are given clerical duties so that
in fact they are not 'employed in their profession' they are not even
exempt from maxim'am h^ur provisions," (Lt. Johnston).
Newspaper Photographers - "For the purposes of the PRA, they are
reporters, whether they obtain pictures or news." (C. S. Long),
Newspaper Reporters. Editorial Y/riters "rewrite men and other members
of editorial stafis are considered as 'Professional Persons'." '(Basic
Interpi .tatiun #19, Tt.A Bulletin No, 4).
f
Nurses - "AH kinds mnistering t .^ h-uman beings are not limited as
to maximum hours of lab^r under Paragraph #2, PM, but they are Subject
to minimum wage provisions, Faragranh #5, PRA.. The same ruling applied
to graduate veterinary nurses. Student aurses in hospitals are not subject
to minimum wage -provisions, TiJ,* Stuifent or undergraduate nurses in a
doctor's office are subject to rainiiiRin wage provisions, PRA." (C« S. Long),
Optometrists (jncluding doctors jf optometry and doctors of
opto:netric science)_ - "are regarded ,as professionals; and when employed
and working in their professional capacity, they are not limited to maxi-
mum hours. Non-rrof essional assistants to the above should be classified
as skilled craftsmen, subject to maxiinum hour and minimum wage provisions."
(Lt, Johnston).
Radio Engineers
and Engineers in uther Higher Technical Professions -
engineers shall be considered professionals depends
"Whether or not such --^, -- , ,-- - -
entirely upon the conditions. Such engineers are under professional clfissi-
fication until other pruven. " (Card #1341),
Teachers "who actually teach in '-rivate schools are considered pro-
fessionals and are exempt as to maximum hours," (Card #1362),
PUBLIC UTILITIES. RAILROADS 01. OTHER JOnsAS 0E_ TrJA^SFORTATION SERVICE -
"Please do not give any opinion, verbally or in writing, to the effect
that Public Utilities, Railroads or other Forms of Transportation service
do not come within the NIRA., The fact is that they all come within the
NIfiA, and it is only a question of policy as to whether or how the pro-
visions of the NIRA shall be applied. Jurisdictional questions are very
9519
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dangerous and, therefore, uiiless you kno^r' the official r-alin§,''-.p^ljea&fi do
net undertake to, state it," (Legal Division memorandum signed ty
Donald R, Richber'g atout August 10, 1933). ' - •
Rj^DI'O T^HGIHEgRS r- See "Professional Occupations".
REAL ESTATE OFERATOitS OR AGENTS -' "v^ho manage properties that are not
entitled to the Plue Eagle because of the refusal of the owners to com-
ply i-"ith Fr.A, may display the Blue -Eagle in- their otti offices if they
put FRA into effect so far as their own employees, over vhom they have
full and di-rect -c-on'trol, are concerned. The Blue Eagle must not. he
displayed, however, on the riremises which they manage, if OT'ners of such
premises refuse compliance." (Lt. Johnston).
RECON'STRUCTION FINAJJCE C0jiP0.-iA.TI0N - "Labor on rirojects financed by the
Reconstruction Finance Corporation is covered by the PRA. " (Lt. Johnston)
RELIGIOUS OjlGANIZATIONS - See "Non-Prof it Orga:ni2ations",
RENT (DEDUCTIONS FOR)' - "No ' deductions 'shall be made from the pay envelope
or check, for, room rent, meals or anything else. The single exception
to this occurs "in the sub5,tituted provisions "foi restaurants, Wiich pro-
vides that "deductions' may be made for meals rher such vas the custom prior
to June 16, 1933." (C. S. Long). Alsu see "Deductions".
REPAIRMEN - "Automobile 'repairmen on commission are piece workers, and
subject to PPiA mini'num wages and ma'xirauta hours." (interpretation Section,
October 3, 193:). _ , . , ■ ,.
I^'PLACE^iENT OF ElVIFLOYEES - See" "IncomiDetent Employees''*.
REVOCATION OF SIGNATURES' OF PRA - ■""See "V^ithdi'awing from PRA". ' ' . .
RIGHTS. CONSTITUTIONAL ANP/OR lUtCTITIES - See "Constitutional Rights".
SALES PROMOTION AIDS - See "Premiums".
SANDWICH STAIJDS - See "Barbecue and Hot Dog Stands."''
S^CHOQLS AND COLLEGES (BUSINESS AND PRIVATE) " OFERA.TED FOR PROFIT -
"Pending the adaption of a specific code for private schools, such schools
are expected ta sign the PRA and put into effect its hours and wages pro-
visions respecting its employees-.- - -
' (1) Teachers f-ho actually teach are considered professionals under
interpretation 6 and are exempt as t.. maximum h jurs,
(2) Office and miscellaneous workers are cuvered ''by Paragraphs 2
and 5, PRA. ' ' ' .■ . . . - . :
,(3) Employees in school kitchens and dining rooms may .-e worked ■
under the restaurant substitution. " ( Interpret-it ion Section, September 23,
1933).
9819
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SECTIQt' 7-a. NIRA. LABOR FEOVISIONS - "The labur provisions of Section 7-a
of the Industrial Recovery Act auturaaticall^ apply to an employer upon
signing the FRA in the same manner as it comes into full effect '"hen the
President signs a permanent code." (General Hammond),
SERVICj: EM?LOYEES_,vs„jvlAINTENANCE EigLQYEES - "For the purposes of the
FRA, servicr employees are those empl'.-yees vho perform the came daily
or perlodi*.al functions in connectioa vith the operation of a plant or
business (such as elevator operators, scrubbers, engineers and firemen,
window washers, rindow trimners and store clerks); while maintenance em-
ployees are defined as those employees whu are available for repairing
breakdowns in machinery and other vork '-hich becomes necessary at irregular
intervals. In this connection, the term' service employees' is not used
in- the sense uf employees rendering service to the public." (C, S. Long).
SHELTERED '..ORKERS - "Persons who are limited in their earning power
through physical or mental defects, age, or other infirmities (physical
or mental defectives, including superannuated employees vh o are really
pensioners), may be employed on light duty below the minimum wage set by
the PRA, and for longer hours than are therein authorized, if the employer
obtains from the State Labor Commission a certificate authorizing the em-
ployment of such defectives in such manner," (Basic Explanation #3,
General Johnson, NRA Bulletin #4). "It has been ruled that in the case
of employees who are superannuated or mentally or physically defective,
an- eaployer can pay part of the minimum wage with an insurance company
making up the balance. Such an arrr>n^ement is equitable for the employer,
the employee and the insurance company," (Lt. Johnston),
"The above has been amended to read: 'State labor coraraission will
be guided ty the instructions of tiie United States Department of Labor
in issuing such certificates. In any state where there is no state labor
commission or analagous authority, application for such a certificate
will be made direct to the United States Department of Labor in Washington.'"
(Local ITtA Compliance Board Memo (C3 7) dated October 9, 1933).
SCRIPT - "It is the intent of the Fr.A that increased wages shall be real
and payable in cash or checks readily convertible into cash. There may
be special cases such as those of municipalities, Counties or states and
even private employers where temporary shortage of cash may make this
impossible for the time being. Any script issued in such emergency should
be convertible into cash at a definite day in the near future and should
not be issued r-s a means of evading provisions- of the PRA." (interpre-
tations Section),
SHOE REBUILDING AKD REFAIRIFG - "Any service activity which is entirely
independent of retail dealing, such as shoe rebuilding, is at present
guvprned by the PRA and not by the retail code. Shoe rebuilding or
alteration which is incidental to tne sale of shoes, is governed by the
retail c -de. But snoe rebuilding jr repairing operatijns, where the
price to the- consumer is preponderantly for labor costs, as distinguished
from costs of merchandise not substantially altered for the purposes of
sale, are not retail operations. Accordingly most independent shoe repair
shops are not imder the retail code. The primary test shjuld be whether
the activity is one in which the selling aspect, as distinguished from
the servicing aspect, pred )minates„ " (i'.L. #21, December 12, 1933 -
Statement iy NRA) ,
9819
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i
SHOE SHINE STAND EMPLOYEES - "Sn.e shine employees come under I-aragrapl^r,-, *2
and #5, FSA. If these emiDloyees woi-ked on a purely commission basis prior I
to June 16, 1933, they ::iay continue to do so, and in such case they are
not subject tu either minimum wages or maximum hours. New employee's may
be added on a straight ' commission basis, provided employment on this basis
has been the custom In 'the past. However, it is a violation of Paragraph ■■
FHA to change to a commission basis employees who have been receiving wage
or base pay plus commission. It is likewise a violation of Farpgraph #8,
PEA for proprietors of shoe shine stands to attempt to evade the purposes
of the FRA by leasing shoe shine equipment to former employees '-^n a basis
which wijuld allow these 'employees a percentage oi' the receipts, this
making the employees proprietors in their ovm right," (Card #1568),
Also see "Commission Viforkers, and "Tips and G-ratuities",
SHOW CAFD VfelTERS - See "Window Trimmers and Show Card Writers".
i
SIGNING THE FRA AND CERTlJi'ICATL OF COivrLlAIvCE - "An em-oloyer engaged in
several different businesses or emoloying labor vf several different
classes shoiild sign but .,ne agreement," (Basic Interpretation #17, I
General Johnson, NRA Bulletin #4), "Tiihere manufacturing establishments,
chain stores, chain resta'orants, etc,, have many establishments in dif-
ferent locations and different cities, the managers of these branches are
■expectedto sign the PRA and Certificate :^i . Com-^liance applying to the
employees under their control," (C, S. Long),
"Hospitals, not engaged in carrying on a trade or industry, do not
come within' the purview of the NIRA, so as to coiae under the ordinary
'requirements of e. code of fair competition. There is nothing to prevent
any employer of labor outside of trades and industries, any professional
man or organization or any non-profit organization, from signing the PEA
and conforming to its provisions. This dues not mean, :ho"'ever, that they
are under any compulsion to do so other than that resulting from a desire
to cooperate i^-here appropriate, and so far as possible, with a, general
program of reemployment at shorter hour's and higher •'■•ages. To the extent
that labor is employed in occupations comparable with those engaged in
trade or industry, it is of course desirable that similar conditions
should prevail," (Mr, Richberg, August lb, 1933),
SMALL COMICTNITIES - "Employers in small communities having neither a
trade association or Chamber of Commerce should apply to the Trade
Association Section, Blue Eagle Division, NRA f -^r designation of proper
organization to consider petitions for, exceptions to the PRA under
paragraph 14." (Lt, Johnston),
SNUFF- See "Cigarette, Chewing, and Smoking Tobacco and Snuff Industry,"
SOCIAL SERVICE INSTITUTIOHS - See "Non-Profit Organizations",
.SOFT DRINK INDUSTRY SUBSTirJTION - "Exemption of drivers and route salesmen
from limitation of maximum hour provisions extended beyond November 5,
1933," (National Compliance Board, November 1, 1935), i
SPLIT SHIFTS - "If splitting hours of employment has in fact increased
employment and wages and comes within the intent of the PRA, it is per-
missible, but if splitting hours is a means uf evading employment and
9819 " ■ ' ■
-171-
the intent of the agreenient it mny be considered ps staf;;gerinf: hours and
in violation of Paragraph 8, PitA. " (C. S. Long). Also see "Ctag£:ering
Hours",
STAG-5E"TNC- HCUP.S "Any unusual or extraordinary arrangement of hours of
labor of esa-olovees ('"fhether vith respect to corresponding hours of
other ennolovees in the establishment, o-.- vith respect to ordinary practices
in the narticular business or comitiuna. ty) , if it tends to violate the spirit
or the Dur-Doses of FHA, is considered ' stagf;ering hours', with intent to
evade the provisions of PRA. " (C. 3. Long). "An employer has a right to
have some, employees start work earlier than others, but the employee's
lunch hour must not exceed that of the general business community."
(L.C. #46, September 16, 1933).' "Lunch periods are not included in
working houi'sj hov/ever, unreasonably long lunch periods may be interpreted
as an attemft to evade the provisions of the FHA« The answer depends upon
the facts in the case," (Card #1575).
STATS GOVERNKISFT. EaFLOYEES - See "G. vernments",
STATE LAT^^S m CONFLICT VJITH FHA - See 'Caws".
STAYS FROM HOUK AND WAGE ?p:OVISIJNS Cb A TENTATIVELY APPROVES SUBSTLTUTION -
"The fact that a substitution has been consented to by NRA. for an industry,
does not deprive an individual of his remedy under Paragraph 14, PRA.
This means that even though che ind'^.rfry has been authorized to operate
under vage and hour provisions of their code in place of similar provisions
of PRA there may still be peculiar reasons vhy the application of these
provisions to an individual wjuld v;o;-k a great and unavoidable hardship.
A petitioner in such a case should follow the identical procedure for one
seeking an exception vrhere no substitution has been allowed for his trade
or industry. The individual should have his petition approved by his
trade association and send it to Washington together x-'ith this approval.
He may then sign the Certificate of Compliance by adding to it the following
notation; (l) To the extent of TEA consent as announced, we have comx)lied
with the FRA oy complying '''ith the substituted provisions of the Code
submitted by the Trade Ir.oustry, ajid (?) Except for those
interim provisions regarding v/ages and hours which have been approved
by the Trade Association." (Card #1379).
"He may comply with all provisions of FRA except those which he is
petitioning to have excepted. Upon signing the Certificate of Compliance
he will receive the "Slue Eagle from the Post Oflice, but before displaying
it, he must put a white bar across its breast with the word 'Provisional'
on it. If the petition is finally approved by NFA, he may take the bar
down. If the petition is not apcroved by NRA, he must comply with the
Agreement and any approved substituted provisions in full." (Card #1360),
Also see "Substitutions."
STEEL PLATE EABRICATORS - "Section 5, Article 2, Petroleum Code is not
intended to apvlv to contractors of this Code, Stoel Plate Fabricators
should operate under their own substitution." (Lt, Johnston).
STEVEDORES. LOFG-SFGREluEN. u'HARE EIvIPLCYELS, SAILORS Al^H) CREWS OF VESSELS -
"These classes of labor are under Far.-jraph #2 and #5, FRA, pending specific
9B19
/
-172-
ruling jr adoption of substitute provisions or permanent Codes aiDolying to
them", (Lt, Johnston),
STOCKHOLDERS OF CORPOIUITIONS -- See "Corpuratiuns".
STORE OR SERVICE OPEIiATIONS (HOURS) - See "Fpragraph #2, Provisions, FKA, "
pages 22 to 24.
STUDENTS- AUD LEARI'IERS - "The FRA does not apply to uona fide students of
vocational schools (including Beauty Shop and Barber Shop students). The
term 'student' here is limited to those i^ho receive n-j remuneration either
by wages, commissions or gratuities. Students and learners may be employed
on a wholly commission basis, in which ©ase the hour and wage provisions,
FRA do not apply." (Card #1384), "Hourly wage rates apply to students
working their way thru school, paid with board and tuition." (informal
interpretation by L, G, Vfilson, August 19, 1933). Also see "Apprentices",
and "Professional Occupations",
STUDENT ^jORKERS - "The Policy Eoara'^ states that it is best not to give
out a 'definite ruling' in regard to these students who are employed during
the summer, consequently it would seem that they would have to be con-
sidered, as regular, employees, and if the employer wants to make an exception
he should submit a formal petition under Paragraph 14, FRA to his local
trade association, etc, and if it is approvecA it should go thru the
regular channels to Mrs, Pettit's section. !' College students working in
restaurants for as, much as four hours per day for their board with no
other monetary considera.tion cannot be considered an exception ■ to thePRA,
the strict application of the terras of the restaurant substitution would
require restaurants to pay students and make. ded.uctions not to exceed
$3.00 per '^eek, and in the case of 4 hours a day would requ.ire monetary
consideration in excess of the meals under the minimum wage scale effective. '•
(Lt, Johnston).
SUBSTITUTIONS TO THE FFA' - "The employer has the choice of remaining
bound by the original FRA, or operating under approved substitutions
thereto applying to his parti-cular business or inc'ustry. " (FRA Policy
Board - VI, p, Farnsworth), "If he has signed the original PSA and
Certificate of Complipnce it is not . necessary for him to sign a second
Certificate of Compliance (with the Consent . Clause added) upon approval
of substitutions, provided he wants to operate under the substitutions
rather than the original PRA. " (Card #1585),
SUPERAMUATED EltflFLOYEES - See "Sheltered Workers",' ' ' .
SV/EAT SHOPS - "An employer taking advantage oi 'sweat shops' outside of
his place of business at less than wage ajid fiour provisions, FRA,
violated the Agreement, Concerning home virork in general, '"'atch for
subterfuge. The WA r'e.quired payment of minimum wage in compliance with
FRA," (Card #1388).
.TAXI DRIVERS - "Taxi drivers are employees unless they are independent
contractors; in no case are they outside salesmen. If they are not
independent contractors, they are subject to maximum hour and minimum wage
provisions. If they hi'^fi the cab themselves or if they are on a straight
qpT q ■ *
-] 7,-3-
commission basis, they are procpbly independent contractors. If they have
a flat guarantee plus a commission or bunus, they are employees and the
guarantee plus commission imist at least equal the miniraum wage," (Card
#1389), "Taxicab drivers under para^-raph #2, TEA, ii n^t owners of their
ov7n cab." (L. 0. Mlson, Axi^ust 19, 1933),
T£ACHSES - See "Schools, Private".
TECm\TIClArS - See "professional Occur)ations".
TEL£G-}^a:HIC COMMJNICATIONS IKDUSTI-:! - "Telegraph messenger boys are exempt
from miniuum wages (zone rates are n.jt to be reduced). In offices located
in cities or towns or isolated places where not more than three employees,
exclusive of messengers, are engaged, employees including messengers are
exempt from maximum hours, provided such employees shall not total more
than 10=^ of the total employees emplj'/ed, " (Int, Section),
"The word 'messenger' v.;here it appears in the substitution approved
for the Telegraphic Communications Irda&try, shall include only outside
messengers, effective December 15, l'd33, " (National Compliance ""^oaro,
November 14 and ?2, 1933),'
"The provisions of the PEA are applicable to messengers in the
Telegraphic Communications Industry engaged in delivering advertising,
samples, and bulk materiel. In the substitution apr roved for this industry,
the word 'messenger' was intended to include only those messengers deliver-
ing telegraph messages and ccing work tnat is strictly related to the
telegraph industry, including the delivery of addressed matter not in
bulk quantities. It was not contemplated that the substitution should
apply to messengers delivering bulk rdvertising, samples, etc. When
telegraph messengers are doing work >^ther than that specified aoove,
they should be employed at the wage rate and hours specified in the
PRA. " (National Compliance Board, November 28, 1933).
"Due to unusual circumstances, a substitution was allowed for
paragraph #7, FPJi., for the T'elegrapnic Coninunications Industry. This
removes the requirement for an equitable readjustment, but it does not
mean that zone rates must not be raised. It is to be h-pod that these
conpanies will carry out the purpose and spirit of the PEA. Dy making an
equitable readjustment, although by r strict legal interpretation they
are not recuired to do so." (V.. P. Farnsworth, October 10, 1933),
"Under the substituted provisi'^.'n for Paragraph 7, PRA approved for
the Telegraphic Comrounications Industry, "'hen the hours of work of an
employee paid by the hour are reduced to the maximum under the substi-
tution, his hourly r?te must be increased so that his vreekly compensation
will be the sawe as before the reduction in hours," (PEA Policy Board,
October IS, 1933).
"The changio-'^ of managers of branch telegraph offices from p salary
basis to a comiriiss--:Jn basis is considered a violation oi the IRA in the
event the change results in ^ decrease in their net income." (Advisory
Council. Compliance Division, June 6, 1934).
9819
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TEHHITORIAL POSSESSIOIIS - I'Due to the entirely different 'hours of labor
and TTg.'^e rates prevailin,^ in our territorial- -oossessions, ve are not
planning to extend to them the PRA.. It is- obvious th?t they cannot "be
regulated on the same basis as , indust|"ies in the United States. Of course,
Section 3A of this Law applies to the insulp.r ;nossessions. If a.ny Code
is presented by them v/e shall ha,ve to apt on iti" (Rugh S. Johnson).
Also see "Farraiian Islands".
TKIKD CLiiSS POST OFFICES - See "Post Office Emplo-^ees".
TIPS AI'D GRATUITIES- - "In no case nay tips or p;ratuities be a-n--^lied in
computing a. minimum wage." (Lt. Johnston). "However, it is considered
perfectly proper for restaurants, clubs, etc. to substitute a service
charge for tir)s and allot whatever portion of the revenue derived from
this charge to- the waiters the management consider -oro'oer. "atch sub-
stitutions or codes for exceptions." (Card #1394).
TOBACCO (CHET:ING M'TD Si-Oi:ilTa). - see "Cigarette, Chewing, .-md Smoking
Tobpcco and Snuff Industry".
TRADE AREA ( Ii 3 ED I ATE) - "'Immediate trade area' is the area in which
there is direct retail competition. In case of question, the decision
shall be made by the local chamber of commerce or similar organisation
subject to review by the State Recovery Board," (Basic Interpretation
No. 13, KRA Bulletin #4). ■ ^. '.
TRADE ASSOCIATIONS PE?. SE - "Trade associations may upon cor.pliance with
PRA, be awarded the Blue Eagle even.' though their industries have not signed
under PRA or Code, as an- organic p.t ion is an entit^^ in Itself. Hov/ever,
it should avoid giving the im.pression that its permission to use the
Blue Eagle extends to the industries v;hich it reioresents. " (Lt. Johnston).
TRAI^SPORTATION SERVICES - See "Public Utilities, Railroads or Other
Forms of Transportation Service".
TRUCK DRIVERS - "Deliveryraen who incidentally take, orders and whose
duties come under Paragraph #2 and #5 PRA, are not excepted from maximum
hours nor from rainimxim wage provisions unless they are wholly on a com-
mission basis. However, check all substitutions _for exceptions to the
above, and note parti cularlj/- substitutions applving to the Trucking, Bakery,
Fluid Iviilk, and Laundry Industries. The above ruling as to truck drivers
who sell also ap;olies to drivers A"'ho buy on commission - such as truck
driver purchasers of farm produqts, .junk, etc.". (Card #1399). "Until such
time as the Trucking Industry Code is approved, it is temporarily agreed
that time and one-third be paid for excess of 40 hours per week or 8 hours
per day in emergency in case .of truck drivers on long hauls." (PRA Policy,'-
Board or thru Ifr. Richberg, August 25, 1933). Also see "Deliverymen",
"Commission VJorkers", and "Trucking Industry".
TRUCKIITG IITOUSTRY. APPLICATIONS OF SUBSTITilTIONS -."(1) The Trucking Industry
substitutions ap-oly to the entire truck transportation industry (except
transportation of passengers) including employees on trucks used by other
trades or industries transporting their ovm. goods exclusively. (2) Indus-
tries which use trucks should work their truck drivers and helpers under
9819
~17c-
the trucking industry substitutions, unless substitutions for their own
industry cover these employees." (C-^rd ^14'''0). "Under the trucking sub-
stitution, a helper on a truck doing lot?xi\r, union/ in^, ?Jid driving in
an emergency sh:vald he -oaid for the tint- he is en route from "ooint of de~
parture of the truck to a destination at '•'hich loading or \mloading is to
te done." (F. S. Folia':, Januai-y 17, 19.V.).
IMIO:^ COirriL.CTS - see "Contracts (Lahor Union)".
U2:I0':J F-ZFESSZlilTATIVSS - ":ir. Richberg nas ruled that it is illse'^al for
an employer under a code or the PRA to refuse to -eet and confer vith
the chosen renresontatives of the emploj'"ees, even though such reioresenta-
tives are not in his employ, llr. Richherg has also strted that an emnloyer
is vithin his rights in such a case in refusing to deal with a labor union
official rho has not been designated as a representative of the employees."
(L. C. #58, September 28, ISSr^.^ ■
UTILI'TY COiviPAallLS FRIVATELY OUliED vs E:CJCUTIirE Oim^gR #6?54 - "Privately
ovned utility com-oanies located in tovnis of less than 2,500 persons iT^hich
have 5 or less emplo^.^ees are relieved from obrerving the PPA, or codes of
Pair Competition if service is furnis'ied locally for only one to'-'n in "hlch
it is located." (T. I. "Cmerson, Legal Division, yarch 27, 1834).
TZTEHIMRY ITJRS'ES - See "Professional Occupations",
VOCATIONAL STTIDE-TS - See "Students and Learners".
•^JAC-S DIPPZPJ^'-'TIALS - See "Paragraph #7, Provisions", page 28.
WATCHi'SK - "Under the original unmodified PEA, T^atclunen are subject to
Paragraphs #2 and 45. Tiienever T.-atcb:en are specifically 'excepted' in
approved substitutions for either Paragraphs i'f2 or #3, PSA, the-:"- are not
amendable to either marcimwa hours or minimum rages, Hovever, if their
hours are shorm in substitutions for either Paragraphs #2 or #3, PEA, to be
limited by, for example, the average nwiber of hours emplo'-ed over a speci-
fied period; the-r are to receive the minimum wage S'-iecified imder Para-
graph #5, PEA." (Lt. Johnston). Office Building T7atchmen - See "Office
Building Industr'-'^ Substitution".
TTillPC STRIP PIT I.:SIC-HIA - See "Insignia".
"I!n)0T7 TRD.aZI'-S A"-^ SHO".: CARD •.'.'RITERS - "Such occuroations ore not classed
as professional unless tney are highl'^ trained and skilled and their ^'^ork
is creative ratner than routine. It is apparent that to be classed as
professional such vorkers should be ejiplo^'^ed primarily in their professional
capacities." (P. L. #9, 'Jovember 20, 19o3).
fflTHDRA^IiTG iriLO:: ITRA AFTER SIC-'/I!'G PI^^ - ";"o firm or individual rho has
once signed the PFA may r-ithdr?^' from the pledge until the expiration there-
of December 31, 1933. If an employer ^ho signed the Agreement finds, be-
cause of pec^oliar circumstaaces in his individual case, great and unavoid-
able hardship rill rea.-a.lt in complying strictly '"ith a].l provisions of the
9619
-176- • •■
Agreement, he may petition for a stay from the provisions ','hich '^ould l
cause this hardship, as lorovided in Paragraph ^14, PRA. " (Lt* Johnston).
"Anyone continuing to display the Blue Eagle after each of the t-'o ex-
tensions of the PEA effective January 1, 1934 and I'ay 1) 19"4 ^as con-
sidered as bound by the provisions of the PEA aJid any- ap-oO i cable approved
substitutions thereto until a code of fair competition ap-olicable to the
signers business became effective." (See Executive Orders t*^6516 and
#5578~A) .
TOEK SPOILED THROUaH CAEELESSI^SS - See "Deductions from 7ages".
WOBK T7SEK - I'An employer may folloT7 the calendar rreek or establish his
own fiscal week. In the case of a fiscal week, the succeeding week
starts where the preceding week ends. Por example, if the eraplo^'^er should
set Wednesday as the beginning of his fiscal week, this week would end
the following Tuesday evening and the next week would begin the following
Wednesday morning." (interpretation Section, October 2, 1933).
WOIMD STRIPE ON INSIGNIA - See "Insignia".
9819
-177-
APPENDIX H
PUSLIC - m. 369 - 73d CONGRESS
H.R. 9002
AN ACT
To provide relief to Governiient contractors "hose costs of preformance
were increaaod as a result of compliance with the Act approved June
16, 1933, and for other purposes.
HE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED ST;.TES OF AI.EERICA IN CONGRESS ASSEi.IBlED, "That the Comptroller
General of the U.^ited States be, and he is hereby, authorized and
directed to adjust and settle on a fair and equitable basis claims
of persons who entered into a contract or contracts with the United
States prior to August 10, 1933, including subcontractors and mateP-
lalaan-': performing work or furnishing material or necessary fuel
direct to the- contractor under such contracts, for additional costs
incurred by reason of compliance on and after August 10, 1933, with
a code or codes of fair competition approved by the President under
section 3 of the Act approved June 16, 1933, knovm as the "National
Industrial Recovery Act", or by reason of compliance with an agree-
ment with the President executed under section 4 (a) of said Act in
the p.erformance after August 10, 1933, of the contract or any part
thereof. If the event tho.t such contract was pEEformed wholly or
in part by a surety on the bond of the contractor, the claim may be
presented by and settlement made with such siirety, but such surety
shall have no greater rights than v/o^ild have a cc rued to the con-
tractor had such contractor completed the contract. Any contractor,
subcontractor, or completing surety desiring an adjustment and
settlement with respect to any such contract under this Act for
increased costs incurred after August 10, 1933, by reason of com-
pliance with the codes or reemplc.'xient agreements shall file with
the department or administrative establishment concerned a verified
claim itemizing such additional costs, and any subcontractor on any
such contract may file his claim directly with the head of the de-
partment or independent establishment concerned or through the con-
tractor. After the claim has been excjnined by the head of the de-
partment or independent establishment concerned, or such person or
persons as he shall designate, the claim shall be transmitted to the
Comptroller General of the United States, accompanied with an ad-
ministrative finding of fact and recommendation with respect to the
claim.
Sec. 2. In no event shall any allowance exceed the amount by
which the cost of performance or such part of the contract as was
performed subsequently to August 10, 1933, ''as directly increased
by reason of compliajice with a code of codes of fair corarpetition,
or with an agreement v/ith the President, as aforesaid.
Sec. 3. In no event shall any allowance be made which would
result in a profit to the claimant exceeding 7 per centum on the cost
of performance of the contract in respect of which the claim is made.
The head of the department or establishment concerned, subject to the
9819
-178- .
approval of the Comptroller General, shall have the authority, from
time to time, to determine the act-aal cost and profit thereon.
Sec. 4. No claim hereiinder shall be considered or allowed -unless
presented within six months from the date of approval of this Act or,
at the option' of the claimant, within six months after the completion
of the contract, except in the discretion of the Comptroller General
for good cause shovTn "by the claimant. ■ ■ ••
Sec, 5. Appropriations for the purpose of paying claims allowed
hereunder and the expenses of determining the claims are hereby
authorized.
Sec. 6. In all proceedings under this Act witnesses may te com-
pelled to attend, appear, and testify and produce hooks, papers, and
letters, or other doc-uments; and the claim 'that any such testimony
or evidence may tend to incriminate the person giving the same shall
not excuse such witness from testifying, "but such evidence or testi-
mony shall not "be used against such person in the trial of rny crim-
inal proceeding. Nothing in this Act shall in any way relieve or
excuse any officer of the United States or any claimant froi. prosecu-
tion under any statute of the United States for any fraud or criminal
conduct.
Approved, Ji^ne 16, 1934.
9819
179
At-fEi<SIZ I
PBA CSMSUS - TASULATIult BY STATUS
BKPLOYlUCrr A..I) PATSC'J-S. JIWE, 0CT03ER, 1933
jlTiBlon and State
Establlanaents
EBBlojBent
Weekly Pavroll
Tieeklv Income Per Wnrlrar
?er cent
of Total
mimber
Reporting
June
October
Per cent
^une
Oetooer
Per cent
Per cent
Uunber
dumber
Per cent
Kuoiber
Huiflber
of Total
Ohan»
of Total
Cnune«
•j»Hi2 STaKS
100.00
643,060
100.00
10,868.004
12.5b4.344
15.6
100.00
$238,458,411
$262,613,470
18.5
$21.94
$22.49
sn LNCLAKS
S.TU
50,199
10.U9
1,096.101*
1.260.139
15.0
9.50
22,797.037
2b.949.Ol8
18.2
20.80
21.38
Mklnt
.«■
5.538
.68
7'*.399
84.301
13.3
• 55
1,305.604
l,522,P2g
16.6
17.55
18.07
i;«w Haopsblre
.57
3.648
.64
69,302
77.345
11.6
.45
1.063.272
1,303,^34
22.1
15.41
16.86
V«r»oiit
,•55
2,25s
.18
20,044
22,987
14.7
.16
370,906
441,680
17.2
18.81
19.21
liassAChu3etts
h.^s
29.1*31
5.'*1
587.705
671,628
1'*.3
5.40
12,884,409
15. 040.970
16.7
21.92
22.39
BhOvie Island
.72
4,600
1.00
108. 909
126,119
15.8
.90
2,150,26b
2.611,015
21.5
19.74
20.71
i-.onnectlcul
i.bf
10. 721*
2.J7
235.805
277.809
17.8
2.10
5.011.520
6.027.971
20.3
21.25
21.70
.,I-uLi aTULWIC
24.1*1
156.979
27.28
2.904.594
1.360.721
13.4
30.03
71.04q.l65
85.5K6.120
17.2
Slbft-
25.47
aw T'-rk
12.93
83.158
13.'»9
1.466,061
1,657.706
13.1
17.26
41,150,693
9.040.358
47.135.779
l'*.5
28.07
28.43
Mw Jersey
3.'*1
21,951
3.62
333. '*31
446,235
13.4
4.04
11,164,712
15.8
24.50
25.02
PennSTlranla
6.07
51.870
10.17
1. 105.109
1.256.780
13.7
9.31
22.258.114
27.285.629
22.6
20.14
21.71
fiST aoHTH CjarrSAL
a,U2
137. 72S
22.59
J.454.S18
?.663.s;i
17.«;
22.64
51. ■140.115
o4. 375.038
19.2
21.^9
22.12
Ohio
0.30
40,508
b.53
710.017
834.214
17.5
0.26
l'*.925,599
17,809.925
19.3
21.02
21^35
19.34
iB'ilana
2.63
18,208
2.37
258,083
310,991
20,5
2^04
'*,874.915
19,920,034
6,013.17/
23.3
18^ 89
Illinois
b.30
40,541
7.61*
630,564
994.187
19.7
8^35
24,529.568
23.1
23.98
24.67
VI caiman
3.33
21. '•37
'♦.06
441.273
500.687
13.5
4^14
9,870,239
10,866,345
10^3
22.17
20.47
21.75
llsconsin
2.65 .
17.93'*
1.98
214.831
243.896
13.5
1.84
4.399.148
5.134,023
16. 7
21.05
-LSI iiu-.IK CEilBAL
11.21
72.231
6.42
097.S55
800.115
14.7
5.98
14.267.178
16.726.957
17.2
20.44
30.91
,lnnesota
2.U3
15.599
1.51*
16t,923
198.539
18.9
1.52
3.628.285
4, 35'*, 797
20.0
21.74
21.93
lom
2.16
13.862
1.01
109,335
125,574
14. 9
.88
2.067.833
2,448,586
17.3
19.10
19.50
Ussourl
3.01
19,3'*8
2.1*7
268,277
293,011
11.1
2.31
5,519,218
6,381,909
15.6
20.57
21,42
1. Dakota
.1*1
2,611
.11
12,115
15,180
25.3
.10
244.047
305,399
401,184
25.1
20.14
20.12
S. Dakota
M
2.823
.15
16,636
18,91-
13.7
.15
357.993
12.1
21.52
21.22
Istraska
1.23
7.896
.53
57,266
bb,224
15.6
.48
1,156,110
1,347,987
16.6
20.19
20.35
1.57
10.092
.62
67.303
77.670
15.4
.53
1.273.692
1.486.811
16.7
18.92
19.14
am ATLAHTIC
7.95
51.095
8.96
974.246
1.12/.2b8
15.7
6.51
15.511.392
19.544.174
25.8
15.94
17.34
Dllavaxe
.19
1,231*
.15
15.922
18.302
14.9
.14
333.178
390,433
17.2
20.93
20.14
21.34
Hsrrland
1.10
7.050
1.31
1-12,091
167.042
17.6
1.20
2.862,197
3,455,007
20.7
20.69
Dlst. Coliimbla
.Ub
2.989
.^1
50.632
56.POI
11.0
.55
l.309.9'*7
1,'*13,772
7.9
25.87
25.16
TlrglQla
1.26
8,108
1.26
137.1'*3
159,'* jO
16,3
•92
2,185,412
2.706,946
21.9
34.9
15.9"*
16.98
1. nrelnla
.87
5.577
1.37
1^3.371
175.239
22.2
1.06
2,516.177
3.394.083
17.55
19.37
S. Carolina
1.06
6,806
1.79
19'4,242
225.793
16.2
1.02
2,422,465
3,208,065
32.4
12.47
14.21
5* .'arollna
.62
3.96U
.86
93.920
102.202
8.8
.43
1,034,232
1,383,201
33.7
11.01
13.53
jeorgla
1.25
8.039
1.25
135.553
152.464
12.5
.81
1,919.801
2,415,697
25.8
14.16
15.85
norlda
l.lt
7,128
-Rh
61 . 172
70.575
15.0
.40
947.983
1.175.4b0
24.0
15.45
16.66
USt SCVTE CE.-TRAL
1.99
25,670
3.55
38O.030
447.901
- lOjO
20.2
. .2.37 .
.77
5»648^'*1.8.
1,329,274
....7:..?o?,930.
2,324,372
27.5
14.61
16.08
laatucky
1.20
?.707
.98
106,448
127.910
27.1
1/^13
13.17
Tionessee
1.19
7,b72
1.19
129,304
145.031
12.1
.81
1,927,348
2.342,(98
21.6
14 •JO
I6.I5
Alabaaa
1.05
6,7'*3
1.07
116,263
132.921
14.3
.62
1,481,168
1.953,238
31.9
12^74
14.69
KlsslsslpDi
.55
7.39
3.548
.31
13.955
•.2.033
2it.8 .
• 17
410.028
iS.g^22_
10.316.912
41.9 .
24.8
12.09
H.19
11.86
■iS? :.:;= CEiTRlT,
47.513
3.97
431,700
520.549
20.6
3.47
8.282.290
i<*.so
Arkansas
.67
'*,338
.32
S"*. i^b
45,818
25.2
.21
504,902
078,310
34^3
14^43
15.48
I.oui«lana
.79
5.073
.72
/8,a7
91.24b
16. V
.55
1,305.648
1.618,472
24.0
16^69
17.74
Oklaaoma
1.58
10.175
.70
75.906
93.812
23.6
.65
1.554.731
1,930,923
24.6
20^48
20.65
>xas
z.ka
27.927
15.962
2,2,3
1.17
242,581,.
127.529
291.673
2.06
4.917.009
6.103.201
-_g!*xl.„.
__22,.?I__
20.92
-uiiAi;:
154. era
21.1
1.12
2,6^.658
3,391,627
26.7
21^00
21.93
Hon tana
.38
2.473
.12
13.2/8
15,875
19.0
.13
312,304
395.415
26.6
23.52
24.91
Idaho
.36
2.312
.14
I5.15f
19,393
27.9
.12
293.917
390,53/
32.9
19.39
20.14
Vroodng
.18
1,188
•09
9.901
12,0(8
28.0
.09
223.311
305,853
37.0
22.55
24.12
-olorado
.85
5,441
.39
42,323
51,298
21.2
.37
8/8.194
1.111.074
26.5
20.75
21, bb
Se» keilco
.17
1.109
.08
3,803
10.412
18.3
• 07
161. 907
204.604
26.4
18.39
19.65
Arizona
.23
1.447
• 12
12.097
14.683
15.0
.12
278,383
319,441
14.7
21.93
21. /b
Utah
1,599
.21
22.373
26.^(4
19.7
.19
456,334
578, /46
26.7
20.42
21.62
. aeTada
.06
393
.03
2.997
3.557
13.7
.03
72.808
66.157
18.3
24.2a .
34.22
rACinC
JaanlQ^on
1.62
10,407
6,30
1.06
114, 9d4
824.038
133,815
20.3
20.7
0.95
• 98
16.564. /44
2,341,184
20.uo4,332
2,680. /6b
23.0
. 24,18
20.36
24,28
20.75
Oregon
1.01
6.527
.67
73.179
93,020
27.1
• 62
1,474,504
1,906.902
29.3
20.15
20.50
California
6.71
4l.l4g
4.57
496.863
592.203
19.2
5.15
12. (49.056
15.217.164
19.4
25.«!6 .
..^.JQ ...
AIL crazas 1/
3.05
19.601
9.6b
1.050.062
1.184.918
12.8
10.70
?';,bRQ,1<:(4 28.4q5.4b2
11.1
24.41
24.05
1/ ^Bta for rpiestloiirialrQB ifolch do not clearly indicate that a Breakdown iias been made on a proper geographical basli; data for establiehnenta operating In
two or Bore States, auch as, railroads, steam boats, pipe lines, telephone and telegraph, and po'^er companies; the reports of companies having plants In
Tarlous States for which individual reports were not submitted Init for Wiich a master report was supplied; and dAta from returns received for a State
after the State had been sent to the Tabulation Section for punch.in^ and tabulating*
5819
DlTielon of Reriew
U.S
-180-
APFEIIDIX J
(Eight conies to be submitted)
BASIC CODE FOR SUBSTITUTIONS 3EF0EE
THE POLICY BOARD IN T. "■-. A. FOR SECTIONS
TO
INCLUSIVE.
DEFINITION:
The term trade/industry
as used herein includes "but is not limited to
SECTION I. LABOR PROVISIONS:
A. Employees shall have the right to organize and bargain col-
lectively through re-oresentntives of their own choosing,
and siiall "be free from interference, restraint, cr coercion
of emr)loyers of labor, or tlieir agents, in the designation
of such representatives or in self-organization or in any
other concerted activities for the Tjuroose of collective
bargaining or other mutual -dd or protection;
B. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing or assisting a labor or-
ganization of his own choosing; and
C. Employers shall comply with the maximtmi hours of labor,
minimum rates of pay, and other conditions of employment,
approved or prescribed by tiie President.
SECTION II. CHILD IA30R:
After August 31, 1933, no person under 16 years of age shall
be employed; PROVIDED, however, that where a state law
specifies a higher minimum fige, no person below the age so
specified by such law, sliall be employed within that state.
SECTION III. ivIAXIMUM HOURS:
A. E:3Dloyees not covered by Section III B (except outside sales-
men) may not be employed in any place or manner for more
than months' period, but may be employed a maximum
week of _____^ hours for any weeks, within any
months periofi; provided, however, that such
employees may not be employed more than eight hours in any
one day. The hours of any store or service operation shall
not be reduced to below _______ hours in any one week, unless
such hours were less than hours per week before
July 1, 1933, and in the latter case, such hours shall not
be reduced at a.11.
9819
B. i'o factory or mechanico.l ror-jer or nr'isnn shall be employed more
t,haia a naxinam 'Tcek of hours, averai-^ed over a
months' peiiod, but ;nay be emoloyed j^ marciman T^eel: of
hours for any ■'"oeks '"ithin such month?- ' TDcriod; pro-
vided, ho'-'ever, that such employees shall not be employed nore
tha.n hours in any one day.
C. The maximum hoars fixed in the foregoing -oara^ra-ohs III A and III
3 shall not aooly to employees in establishments em-oloying not
noro than t'-JO oersons in tc-ns of less theji 25f^C' population, -'hich
to'.7ns a,re not a part of a larger trade area; nor to registered
■ohai-macist s or othur -orofessional nersons erroloj^ed in their pro-
fessions; nor to em-oloyees in a managerial or errectxtive caoa.city,
\7ho receive more than $35. 0^'- ppr rreek; nor to emx)loyees on emer-
'^ency maintenance and re-oair 'TOrk; nor to very sTjecial cases 'There
restrictions of ho^rs of hi<;hly skilled "orkers on continuous "oro-
cesses ^.^ould unavoidajly reduce loroduction (sta.te cla.sses and '"'ork),
But in any such SToecial case, at least time and one-third shall be
■paid for hours 'Torked in excess of the mpximam hours per day liere-
inbefore i^rovided; not to _^.
The pouulation for the -ourposes of this Code shall be determined by
reference to the 1930 Peo.eral Census.
SECTIOIT IV. LETII^IUlv: "^GES:
A. £m-oloyees in tne clpr.ses covered by paragraph III A shall be paid
not less than dollars r)er ^reek in an;'"
cit^/ of over 500,0' C -copulation or in the immediate trg,de area of
sij.ch a city; nor less than dollars per
rreek in any city of Dctwoen 2,500 and 250,000 -oo-Dulation, or in
the immediate trade area of rrach city; and in to;ms of less than
2, 50C population, wages shall be increased by not less than
percent, .-orovided that this shall not require ^■^a.ges to be paid in
excess of per '"'eek.
3. E:a^lo3"ees of tne clasres mentioned in paragraph III B sliall be
paid not less than cents per hour. It is agreed that
this -jaragra-Toh establishes a guaranteed minimum rate of pay, re-
gardless of "fhether the employee is con-oensated on the bases of a
time rate or on niece work performance,
C. (List here erccentions to and e :em')tions from the above wage fig-
ure, if any.)
SSCTIOIT y. PEESIDEfTTIAL LGDIFICATIOl"! ;
The President may, from time to time, cancel or modify any order,
a-o-oroval, license, ruling or regulation issued under this title.
9819#
OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION
THE DIVISION OF REVIEW
THE WORK OF THE DIVISION OF REVIEW
Executive Order No. 7075, dated June 15, 19^55, 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 studies,
legal studies, administration studies, miscellaneous studies, and the writing of code his-
tories. The materials which ivere 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 he found in the files,
out 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
Materials No ^8, Contents of Code Histries, will be found the outline which governed
the preparation of Code Histories.)
(In the case of all approved codes and also in the case of some codes not carried to
final approval, there are in NRA files further materials on industries. Particularly 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~l .
-ii-
set forth the origination of the code, the sponsoring group, the evidence advanced to sup-
port the proposal, the report of the Division of Research and Planning on the industry, the
recojsmendations 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 data (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 Materials Nq. 17, Tentative Outlines and Summaries of
Studies in Process, these materials are fully described).
Industry Studies
Automobile Industry, An Economic Survey of
Bituminous Coal Industry under Free Competition and Code Regulation, Economic Survey of
Electrical Manufacturing Industry, The
Fertilizer Industry, The
Fishery Industry and the Fishery Codes
Fishermen and Fishing Craft, Earnings of
Foreign Trade under the National Industrial Recovery Act
Part A - Competitive Position of the United States in International Trade 1927-29 through
1934.
Part B - Section 3 (e) of NIRA and its administration.
Part C - Imports and Importing under NRA Codes.
Part D - 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
- Ill -
Women's Apparel Industry, Some Aspects of the
Trade Practice Studies
Coaniodities, Inforniation Concerning: A Study of NRA and Related Experiences in Control
Distribution, Manufacturers' Control of; Trade Practice Provisions in Selected NRA Codes
Distributive Relations in the Asbestos Industry
Design Piracy: The ProbJem 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 i^ractice Rules of The Federal Trade Commission (1914-1936); A classification for
comparison 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 Industrial 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
Adainistrative Interpretations of NRA Codes
Administrative Lav? and Procedure under the NIRA
Agreements Under Sections 4(a) and 7(b) of the NIRA
Approve Codes in Industry Groups, Classification of
Basic Code, the — (Administrative Order X-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—2.
I
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 Gcvernmeat
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 ic 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 ;f Establishing Proper Economic Standards, Legal
Memorandum on Possibility of
Industrial Relations in Australia, Regulation of
Intrastate Activities Which §o 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 -jf Federal Recovery Legislation History and Analysis
Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility i.f 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 Labi,r?
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 dnd 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, naterial 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.
- vi -
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, and Lacquer, Mfg. Industry
Coffee Industry Plumbing Fixtures Industry
Copper and Brass Mill Products Industry Rayon and Synthetic Yarn Producing Industry
Cotton Textile Industry Salt Producing Industry
E^l^gtrical Manufacturing Industry
THE COVERAGE
The original, and approved, plan of the Division of Review contemplated resources suf-
ficient (a) to prepare some 1200 histories of codes and NRA units or agencies, (b) to con-
solidate and index the NRA files containing some 40,000,000 pieces, (c) to engage in ex-
tensive field work, (d) to secure much aid from established statistical agencies of govern-
ment, (e) to assemble a considerable number of experts in various fields, (f) to conduct
approximately 25% more studies than are listed above, and (g) to prepare a comprehensive
summary report.
Because of reductions made in personnel and in use of outside experts, limitation of
access to field work and research agencies, and lack of jurisdiction over files, the pro-
jected plan was necessarily curtailed. The most serious curtailments were the omission of
the comprehensive summary report; the dropping of certain studies and the reduction in the
coverage of other studies; and the abandonment of the consolidation and indexing of the
files. Fortunately, there is reason to hope that the files may yet be cared for under other
auspices.
Notwithstanding these limitations, if the files are ultimately consolidated and in-
dexed the exploration of the NRA materials will have been sufficient to make them 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.
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