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M' 



BOSTON PUBLIC LIBRARY 



3 9999 06542 025 



III ,s/5ypi.Pr 



OFFICE OF NATIONAL RECOVERY ADMINISTRATION 
DIVISION OF REVIEW 



THE CONTENT OF NIRA ADMINISTRATIVE LEGISLATION 
PART A: EXECUTIVE AND ADMINISTRATIVE ORDERS 

By 
RUTH AULL 

WORK MATERIALS NO. 35 



Work Matsrials No. 35 falls into the following parts; 



Part A 
Part B 
Part C 
Part D 
Part E 
Part F 



Executive and Administrative Orders 
Labor Provisions in the Codes 
Trade Practice Provisions in the Codes 
Administrative Provisions in the Codes 
Agreements under Sections 4(a) and 7(b) 
A Type Case: The Cotton Textile Code 




Special Studies Section 
February, 1936 



OFFICE OF NATIONAL RECOVERY ADLilNI STRATI ON 
DIVISION OF REVIEW 



THE CONTENT OF NIRA ADMINISTRATIVE LEGISLATION 
PART A: EXECUTIVE AI^ID ADMINISTRATIVE ORDERS 



By 
RUTH AULL 



SPECIAL STUDIES SECTION 
February, 1936 



75 



THE CONTENT PIT >TIEA AJI.IDIISTHATIVE LEGISLATION 

PART A 
TABLE OF CO IT TENTS 



INTRODUCTION .. 

CHAPTER I 

CHAPTER II 

CHAPTER III 

CHAPTER I^^ 

CHAPTER V 

CHAPTER VI 

CHAPTER VII 

CHAPTER VIII 

CHAPTER IX 

CHAPTER X 



A. Declaration of Policy (Section l) 

B. Expiration of Act (Section 2(c)) 



Page 
1 
3 



Administrative Agencies (Section 2(a)) 

Delegation of Pov/er ty President (Section 2(1)))... 

Code Approval and Substance (Section 3(a)) 

Mailing of Reports and Keeping of Accounts 
(Section 3(a)) , 



Exemptions ^'Jid Staj^-s (Section 3(a)) 

A. Procedure a,nd Delegation 

B. General Exemption Orders 



Compliance and Enforcement 
(Sections 3(b), (c) and (f )) . 

Imposed Codes (Section 3 (d)) 

Imports (Section 5(e)) 



Voluntary Agreements (Section 4(a)),.., 
A. President's Reemplo^'ment Agreement 



CHAPTER XI 

CHAPTER XII 

CHAPTER XIII 

CHAPTER XIV 



Territorial Agreements 

Service Trades Agreements 

Voluntary Agreements Since June 15, 1935 



Licensing (Section 4(b)) 

Exemptions from Anti-Trust Lans (Section 5) 
Manual Labor ( Section 5) 



Limitations upon Applicaticn of the Act 
(Sections 6(a) and (b)) 



CHAPTER 



XV 



Federal Trade Commission Investiga.tions 
(Section 6(c)) 



CHAPTER }CVI Requirements Concerning Labor (Section 7(a)) 



18 

20 
20 
22 



26 

30 

31 

33 
33 
35 
36 
37 

38 

39 

40 

41 

42 
43 



9675 






13 My 36 g 



CHAPT:;:H XVII Lator A^^reements (Section 7(b)) 4-7 

CHAPTER XVIII Limited Labor Codes (Section 7(c)) 48 

CHAPTER XIX Application of Agricultural Adjustment Act 

(Section 8) 49 

CHAPTER ]a: Oil Regu.lation (Section 9) 52 

CHAPTER }CXI Rules and Regulations (Section 10(a)) 53 

CHAPTER XXII Amendments (Section 10(1d)) 54 

CHAPTER XXIII Insignia 55 

Sheltered Y/orkshops 58 

Prison Industries 60 

Territorial 60 

CHAPTER XXIV Government Contracts 51 

CHAPTER ]av Budgets and Assessments 59 

APFEITDICES 

I national Industrial Recovery Act (public 57, 73rd Congress). ,73 

II Basic Code - Administrative Order ]C-'51 79 

III Adininistrative Orcier X-62 83 

IV Administrative Order X~63 87 

V Bulletin 7 88 

VI Office Order 37 121 

VII Bulletin 3 138 

VIII Administrative Order X-80 145 

IX Office Instruction #28 150 

X Forms 38-A and 191 154 



9675 



-11- 



PORBWOHD 

The object of this study is to set forth in convenient form the suli-. 
stantive content of administrative legislation under the authority of 
Title I of the National Industrial Recovery Act as found in the orders, 
codes and agreements. Part A, prepared "by Ruth Aull, is concerned v/ith 
Executive and Administrative Orders and in some cases, Office Orders and 
Memoranda, legislative in naturej Part B, prepared "by Ruth Reticker, with 
the labor provisions in the codes; Part C, prepared by Daniel S. G-erig, Jr. 
and Beatrice Strasburger, with the trade practice provisions in the codes; 
Part D, prepared by C» W. Putnam, with the administrative provisions in 
the codes; Part E, prepared by Ruth Aull, v/ith the provisions of agree- 
ments under Sections 4(a) and 7(b) ; and Part F, prepared by Ruth Aull, 
with a type case: the Cotton Textile Code. The work was under the gen- 
eral charge of G. C. Gamble, Coordinator of the Special Studies Section. 

Title I of the National Industrial Recovery Act delegated to the 
President unprecedented powers with respect to regulation of industry 
and trade. The theory of the Act was that through the sponsorship of 
codes by trade or industrial associations or groups, and through volun^ 
tary agreements, such regulation would be cooperative with industry and 
trade. 

By Section 2(b) of the Act the President was authorized to delegate 
any of his functions and powers to such officers, agents, and employees 
as he might designate or appoint. This power of delegation was widely 
exercised and. through the administrative activities of the National R&- 
covery Administration, established by the President under Section 2(a) 
of the Act, 557 so-called industry or trade codes and 188 codes supple- 
mentary to the basic codes came into being. These codes were approved 
under the authority of Section 3(a) of the Act. In addition a smaller 
but none-the-less considerable n-ujiiber of agreements was entered into under 
Sections 4r(a) and 7(b) exclusive of the President's Reemployment Agree- 
ment, based on Section 4(a), v^ich was "accepted" by more than 2,000,000 
employers, Tlie codes were to be as binding as any Act of the Congress, 
and the code-making administrative processes under the Act may aptly be 
described as sub-legislative. 

The Supreme Court in its decision on the Schechter case, which ter- 
minated the existence of the codes, referred to the legislative aspects 

of the code-malcing process in saying: 

"It (the statutory plan) involves the coercive exercise of the law- 
making poT/er. The codes of fair competition which the statute at- 
tempts to authorize are codes of laws. If valid, they place all 
persons within their reach under the obligation of positive law, 
binding equally those who assent and those who do not assent." 

The agreements entered into under the Act, at least with respect to 
the administrative steps leading to approval, were less clearly legisla- 
tive, but the agreements under both Sections 4(a) and 7(b) constituted, 
to the extent they were used, the detailed and substantive expression of 
the legislative intent, iVrthermore, the position taken by the National 
Recovery Administration that the phrase "same effect as a code of fair 
competition" used in Section 7(b) referred to the fact that the agree- 
ment when approved should carry the penalty provisions of the act, would, 
if sustained, give such agreements legislative aspects identical with 
those of the codes. 
9675 -iii-r 



In the administr.^.tion of the National Industrial Recovery Act many 
orders v/ere issued wnich affected the actions or interests of persons not 
connected with the National Recovery Adininistration or affected the pro- 
visions of codes. The Executive Orders issued by the President and the 
Administrative Orders issued "by the Administrator for Industrial Recovery 
or in the name of the national Industrial Recovery Board bearing on the 
adrninistrrtion of Title I of the Act v/ere, with a few exceptions, issued 
under the authority of the Act itself or under the delegation of pov/er 
permitted by Section o(b) . A substantial percentage of such orders, 
through the nature of their provisions, were legislative. Within the 
National Recovery Administration Office Orders or Office Memoranda were 
issued primarily as instructions to or for the guid.'once of the personnel 
of the organization or for the purpose of establishing parts of the or- 
ganization. Some of these orders nevertheless contained provisions or 
requirements which directly affected code provisions or indicated re- 
quirements upon members of industry and in their scope seemingly may be 
called legislative in nature. 

It vail be observed that the provisions of the National Industrial 
Recovery Act constituted a very small portion indeed of the great volume 
of administrative legislation under the Act. The substance of the ad- 
ministrative legislation is to be found in documents formulated from 
varioiis t^'pes of administrative action, 

Tno stu.dy is not concerned vath evaluation of this administrative 
legislation; it is not concerned with evaluation of its consequences. 
Such issues are treated in other studies. This study is confined to a 
statement of the content of the ITIRA administrative legislation. 

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



L, C. Mrix shall 
Director, Division of Review 



February 17, 1936 



9675 



-IV- 



^ k 



-1- 

THE COITTEITT 0? ITI.RA AJMIITIS TRATIVE LEOISLATIOIT 

PART A 

Introduction 



This part of the study sets forth the suhstantive content of 
Executive and Administrative Orders and, in some cases, of Office Orders 
and Mei.ioranda issued -under authority of Title I of the National Industrial 
Recovery Act or in the course of its r.dininistration which were legislative 
in nature and related to activities of the National Recovery Administration. 
AdjTiinistrative or other orders issued under particular codes are not 
included in this portion of the study. 

Chapters I to XXII inclusive are concerned with those orders whose 
origin is traceahle to specific sections of the National Industrial Recov- 
ery Act; Chapters XXIII to XXV inclusive, with those orders lacking 
statutory basis in the Act. 

Executive Orders are signed only "by the President of the United 
States. Under Title I of the National Industrial Recovery Act, Executive 
Orders were the media for delegating the powers and duties of the 
President as authorized by Section 2(b), approving codes under Section 
3(a) and agreements under Section 4(a), issuing rules and regulations 
under Section 10(a), and canceling or modifying codes, agreements and 
regulations under Section 10(b) . 

The general X- series of Administrative Orders were issued by the 
Administrator for Industrial Recovery and, after the appointment of the 
National Industrial Recovery Board, in the name of the Board by the 
Administrative Officer. Eowever, there were a fev/ exceptions as the 
Chairman and the Executive Secretary of the National Industrial Recovery 
Board each signed at least one Adrainistrative Order. After delegation 
of powers to the Administrator by the President, Administrative Orders 
were the instruments of the administration of such delega.ted powers. In 
many instances, Adrainistrative Orders were complementa.l to Executive 
Orders — e.g., Executive Order 6723, which provided for the suspension 
of certain provisions of such service trades codes as were designated by 
the Administrator who made the designations in Ad-ninistrative Orders X-37, 
X-50 and X-54. In addition, thousands of Administrative Orders, and 
some Executive Orders, were issued tinder the various codes bearing the 
code and serial numbers by way of identification. This type of order v/as 
issued in granting or denying petitions for exemption, in interpreting 
code provisions, in appointing members of code authorities and, in short, 
in giving effect to the numerous administrative decisions under codes, 
and were in most cases signed by the Division Administrators to whom 
authority had been delegated by the Administrator. 

Office Orders were issued by the Executive Officer, later by the 
Administrative Officer under authority of the Administrator, and occasion- 
ally by the Administrator. Many Office Orders dealt with procedural or 
organizational matters, but they were used also to set forth requirements 
as to code provisions. (*) 

(*) E.g., see pp. o-ll, below. 
9675 



Office Memoranda were issued "by the Executive Officer, latter "by 
the Administrative Officer, and were largt'ely instructional in nature. 
Some of them, however, suggested clauses for inclusion in codes, (*) some 
imposed requirements upon code authorities, (**) and some delegated 
authority to various Deputy Administrators. (***) 



(*) E.g., see p. 8 et seq., "below. 
(**) E.g., see pp. 70, 71 and 72, "oelov;. 
(***) E.g., see p. 36, "below. 



9675 



FAUT A 
CHAPTER I 
A. DECLARATION OF POLICY 
Section 1 



Section 1 of Title I of the National Industrial Recovery Act 
(PulDlic 67 of the 73rd Congress) follows; 

• "A national emergency productive of widespread unemployment 
and disorganization of industry, which burdens interstate ' 
and foreign commerce, affects the puhlic welfare and under-* 
mines the standards of living of the American people, is 
hereby declared to exist. It is hereby declared to be the 
policy of Congress to remove obstructions to the free flow 
of interstate and foreign commerce v/hich tend to diminish 
the amount thereof; and to provide for the general welfare 
by promoting the organization of Indus trj"" for the purpose 
of cooperative action among trade groups, to induce and 
maintain united action of labor and management under adequate 
governmental sanctions and supervision, to eliminate unfair 
competitive practices, to promote the fullest possible 
utilization of the present productive capacity of industries, 
to avoid undue restriction of production (except as may be 
temporarily required) , to increase the consumption of 
industrial and agricultural products by increasing purchasing 
power., to reduce and relieve unemplojrment , to improve 
standards of labor, and otherwise to rehabilitate industry 
and to conserve natural resources." 



B. EXPIRATION OF ACT 
Sectio n 2(c) 



Section 2(c) provided that Title I was to cease to be in effect 
and any agencies established thereunder were to cease to exist at the 
expiration of two years after the date of enactment of the Act, or sooner 
if the President by proclamation or the Congress by joint resolution 
should declare that the emergency recognized by Section 1 had ended. 

Ho Executive Orders were issued under authority of this Section. 

On June 14, 1935, Public Resolution 26 of the 74th Congress was 
approved by the President. This resolution, among other things, changed 
the date of expiration of the Act to April 1, 1936. 



9675 



-4- ' 

Ca&PTER II 
ADI.:INISTRA.TIVI] AG3NCISS 
Section 2(a ) 

Section 2(a) of the. Act (*) authorizecL the President "to establish 
such agencies, ... to appoint, without regard to the provisions of the 
civil service larjs, such officers and employees, ... as he may find 
necessary, to prescribe their authorities, duties, responsi^bilities and 
tenure, and, ^.Tithout regard to the C].a.ssification Act of 1923, as amend- 
ed, to fix the compensation of any officers and employees so appointed." 

Executive Order 6173 'of June .16, 1933, ap-oointed the Administrator 
for Industrial Recovery, and a Special Industrial Recovery Board, com- 
posed of the Secretary uf Coraraerce as C^halrmaJi, the Attorney General, 
the Secretaries of Agriculture and Lo"bor, ..the Director of the Sudget, 
the Administrator for Industrial Hecovery and th^^ Chairman of the Feder- 
al Trade Commission, : 

J?olloT7ing the resignation of the Administrator, Executive Order 
6859, Sept-^mher 27, 1934, creaiised the National Industrial Recovery 
Board and appoirrted five merahers and two ex-officio merahers. Executive 
Order 6993 of March 21, 1935, added trro full-fledged memhers to the 

Board. 

Eollomng the S-apr'uie Court decision in the Schechter case the 
National Industrial Recovery Board" \7as terminated and an Acting Adminis- 
trator was appointed hy Executive Order 7075 of June 15, 1935, to pro- 
vide for the continuing sclifiinistration of the provisions of Title I of 
the National Industrial Recovery Act as amended "by Public Resolution 
26, approved June 14, 1935, The same order established the Division of 
Review and the Division of Business Cooperation and appointed the 
Directors thereof. The Advisory Council. was also therehy established 
and its memhers appointed. 



(*) "The Act" as hereinafter used refers to Title I of the National 
Industrial Recover^/- Act, approved June 16, 1933. See Appendix I. 



9675 



-5- 

CHAPTEE III 
DEIiEGATION OF POWER BY PRESIDENT 
Section 2(Td ) 

In classifying the various orders according to their subject 
raatter, those delegating various DOwers must necessarily "be considered 
"both in this section on the delegation of power hy the President and in 
the sections relating to the types of pov;ers delegated. In order to 
avoid too much duplication this section sets forth hriefly orders "by 
■■-'hich th e President delegated povjers . vhile orders further delegatin g 
powers are set forth in the sections dealing with the suhject matter 
thereof. Moreover, orders having a hearing on NRA activities delegating 
powers of the President to the Secretary of Agriculture are not con- 
sidered in this portion of the study hut in connection with the section 
of the Act specifically providing for the delegation of functions to 
the aforementioned official. 

Section 2(h) of the Act provided that "the President may delegate 
any of his functions and powers ... to such officers, agents, and em- 
ployees as he may designate or appoint..." 

The Administrator for Industrial Recovery was appointed hy Execu- 
tive Order 6173, June 16, 1933, and was to "have authority, suhject to 
the general approval of the Special Industrial Recovery Board, to appoint 
the necessary'" personnel on a temporary "basis to con'Tuct hearings and to 
do such other and necessary work as authorized," 

By Executive Order 6205-A, July 15, 1933, the Administrator was 

authorized "to appoint the necessary personnel on a permanent hasis, to 

fix their compensation, and to conduct such hearings and to exercise 

such other functions as are vested in (the President) hy Title I of said 
Act, except the approval of codes, etc." 

Executive Order 6205«B of the same date gave to the Administrator 
authority to stay the application of a code to persons who had not 
participated in establishing or consenting to a code if application was 
made hy affected persons within ten days after the effective date of the 
code. 

By Executive Order 6337, dated Octoher 14, 1933, the President 
authorized the Administrator for Industrial Recovery "to prescrihe such 
rtiles and regulations as he may deem necessary to si^iplement, amplify, 
or carrj'- out the purposes and intent of the rules and regulations pre- 
scrihed" in that order and "to take such other steps as he may deem ad- 
visahle to effectuate such rules and regulations or any rules and regu- 
lations so prescribed "by the Administrator, and to appoint personnel and 
delegate thereto such powers as may "be deemed necessary to accomplish the 
purposes of this order," 

Executive Order 6353 of Octoher 23, 1933, among other things, era- 
powered the Administrator "to make such preliminary investigations as he 



9675 



may deem advisable with reference to matters relating to relief -under 
section 3 (e)" of the Act. The Adi.iinistrator was also to "prescribe reg- 
ulations to govern the making-of coniplaints snider said section 3(e)". 

'ihe Administrator v/as authorized "by Exeaitive Order 6439, ITovember 
18, 1933, to adopt a seal for F?lA and copies of all documents authenti- 
cated thereunder by the Administrator or anyone duly appointed "by him 
were to he admitted in evidence equally, with the originals, thereof, pur- 
suant to the authority thus granted, the Administrator forthwith adopted 
a seal and appointed a certification clerk by Administrative Order ' 
X-1, November 20', 1933. 

Executive Order 6443, ITovember 22, 1933, authorized the Administrator 
to make such modifications of, grant such exceptions to and exetrptions 
from agreements entered into under Title I of the National Industrial He- 
coverj' Act; this authorit", however, was not to relate to modification 
of codes of fair coropetition. 

The president delegated to the Administrator by Executive Order 
6543-A, December 30, 1933, the pov/er to approVe codes for industries 
other then those employing more than 50,000 employees and other than those 
irirposed r.nder Section 3(d) of the Act, The same order gave the Adminis- 
trator authority to approve "any amendment or modification to, exception 
or exemption from, or elimination o"f any one or more provisions of any 
code of fair competition." 

The Administrator r'as authorized by Executive order 6590-A, Feb- 
ruary S, 1934, to "pres'.-ribe rules and regulations governing amendments 
to, Modifications of, e.^creptions to, exemptions from, stays of, and other 
forms of relief from, codes' of fair coii'rpetition." 

Executive Order 6590-B, also Issued Febniary 8, 1934, authorized the 
Administrator to "prescribe ru-les and regulations requiring persons sub- 
ject to codes .... to post or display the terms and provisions of said 
codes . . . . " 

Executive Order 6723, Hay 26, 1934, directed that all provisions in 
codes of such service trades as shoiild be thereafter designated by the 
Administrator were to be suspended, until further orders, except provisions 
governing child labor, ::£.ximura hours of work' and minimum rates of pay and 
the mandatory provisions of sections ?(a) ojid 10(b). 

By Executive Order 6750-A of June 27, 1934, the Administrator was 
delegated "the power to enter into agreements ... with persons engaged in a 
trade or industry" in the Territories of Puerto Rico, Hawaii or Alaska, 
if in his judgment such agreements would aid in effecttiating the policy 
of the Act with respect to transactions in or affecting interstate or 
foreign commerce and would not tend to promote monopolies or eliminate 
or oppress small enterprises. 

Eollov/ing the resigna,tion of the Administrator, the National Indus- 
trial Recovery Board was created by Execative Order 6859 (September 27, 
1934) and was authorized "subject to the general approval of the Industri- 
al Emergency Committee (created by Executive Order 6770, June 30, 1934, 
which order was subsequently amended by Executive Orders 6860 and 6889-A 
of September 27 and October 29, 1934, respectively), to promulgate admin- 
istrative policies, to appoint, employ, discharge, fix the compensation. 

9675 



-7- 

define the duties and direct the conduct, of the personnel necessary for 
its adj.iinistration and to exercise all those powers heretofore conferred 
"by Executive Orders upon the Administrator for Industrial Recovery." 

The national Industrial Recovery Board V7as terminated and the office 
of Adi.iinistrator of the National Recovery Administration was created "by 
Executive Order 7075, June 15, 1935. The Administrator was to administer 
the provisions of Title I of the Act as amended by Public Resolution 26, 
approved June 14, 1935, "and was to exercise all those powers theretofore 
conferred by Executive Orders upon the National Industrial Recovery Board, 
subject to the limitations u'oon such powers contained in Public Resolution 
26. 



9675 



-8- 

CliAPTEH IV 

CODE APPRO ViUj HID a'B STANCE 

Section 3 ( a ) 

This portion of the study sets forth the sulDstantive content of the 
various orders issued concerning cJode approval, the provisions which 
were from time to time required to he inserted in codes, and those modi- 
fying to some degree codes previously or thereafter approved. 

Section 3(a) of the National Industrial Recovery Act provided that 

"Upon the application to the President oy one or more trade or 
industrial associations or groups, the president may approve a 
code or codes of la.ir competition for the trade or industry or 
suhdi visions thereof, represented "by the applicant or applicants, 
if tlie president finds (l) that such a.ssociations or groups im- 
pose no inequitahle restrictions on admission to membership 
therein and are truly representative of such trades or industries 
or subdivisions thereof, and (2) that such code or codes are not 
designed to promote monopolies or to eliminate or oppress small 
enterorises and will not operate to discrir.iinate against them, 
and will tend to effectuate the policy of this title: provided . 
That such code or codes shall not permit monopolies or monopo- 
listic practices; provided furthe r, That where such code or 
codes affect the services and welfare of persons engaged in 
other steps of the economic process, nothing in this section 
shall deprive such persons of the right to he heard prior to 
approval by the president of such code or codes." 

A memorandum from the Executive Officer to all deputies and staff 
members of September 11, 1933, set forth that minimum price and fair 
practice provisions in codes should not be so phrased as specifically to 
exempt articles in export trade. It was also stated that the mere fact 
that articles v/ere manufactured for export should not exempt them from 
labor provisions. In brief, exemptions were to be granted only upon 
showing of hardship under an existent code provision and not by the 
code per se . 

Office Order 34 of September 12, 1933, anticipated Execative Order 
6479 by almost three months in requiring all codes thereafter submitted 
to contain the following provisions re statistical reports: 

"In addition to information required to be submitted to the 
code authority, there shrll be furnished to government agencies 
such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3(a) of the 
National Industrial Recovery Act." 

The same Office Order instructed all deputies to advise industries 
already under approved codes that no provision of any code relieved any 
industry from the obligation of continuing to make customary statistical 
reports to government departments and to supply any additional infor- 
mation "the Admini strait or may from time to tim.e deem necessary ..." 

9675 



-9- 

Executive Ord.er 6479 of DecemlDer 7, 1933, referred to above, which 
should have preceded instead of following the aforementioned Office Order, 
reiterated in large part the phraseology of the Office Order arid added 
"but one proviso - that all codes theretofore approved were modified to 
require code authorities and "all or any of the persons subject to such 

code(s) (to) furnish such statistical information as the Admin~ 

istrator may deem necessary," (This order, affecting as it did codes 
previously approved, can be considered to have been issued under the 
authority of Section 10 (b) of the Act,) 

Office Order 38 (October 24, 1933) prescribed that codes there- 
after were to make the following provisions for the constitution of 
code authorities: members of the code authority representing the in- 
dustry were to be chosen by the industry by a method properly devised 
in each ccse to insure representation of all interests. In case 
selection by the industry was impossible due to conditions peculiar to 
the industry, appointment by the President might be made. Further, 
the government was to be represented on code authorities by from one to 
three members without vote to be appointed by the Adi^iinistrator, At 
least one of these was to have had a backgroxmd of experience in the 
industry or in an allied industry but without interest at the time "or 
embarrassing previous connection therewith,"- Questions of the number of 
members to represent the government in the case of each code and the 
qualifications to be required were to be referred to the Administrator 
for decision, G-overnraent members v/ere to be appointed for terms of six 
months to one year but the terns on a given code authority were to be so 
arranged as not to expire at the same time. 

Ah unniimbered Office Memorandum of November 22, 1933 — in addition 
to provisions irrelevant to this study — provided that thereafter pro- 
visions in codes vesting duties in certified public accountants were to 
read "by a certified public accountant or by an accountant having the 
equivalent in qualifications and ability ..... provided, hovrever, that as 
to any service to be performed in any particular state such ac- 
countant in any event shall have the qualifications required by law in 
such state " ^parently this proposed code provision was not en- 
tirely acceptable to all concerned because on January 29, 1934, another 
unnumbered Office Ilemorandun was issued ^'in answer to objections" to 
the previous one which suggested the follov/ing wording: "by a certified, 
registered, chartered, or any other lawful practitioner of public ac- 
countancy." 

Sxecu.tive Order 6464 was issued November 27, 1933, because of 
"confusion and misapprehension" which had arisen regarding the meaning 
of certain commercial bribery provisions included in codes theretofore 
approved. That order interpreted all such provisions to mean the fol- 
lowing, and further provided that future provisions v/ere to conform: 

"Ho member of the industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of 
influencing or rewarding the action of any employee, agent, or 
representa,tive of another in relation to the business of the 
em;oloyer of such employee , the principal of such agent or the 
represented party, without the knowledge of such employer, 
principal or party. Commercial bribery provisions shall not 

9675 



-10- 

Tdg construed to prohibit free and general distribution of 
articles commonly used for advertisi'Oe; except so far as such 
sxticles are actually used for cor-imercial "bribery as herein- 
above defined." 

In other words, as tlie order further stated, such provisions were not 
intended to interfere with an industry/ dealing; specifically with the 
subject of premiums in any way it might have proposed if approved by 
the President. 

Office Order 54, Januriry 5, 1934, provided that persons affected by 
provisions of a code to which they were not subject were entitled to 
register objection at the public hearing on such code and, "after having 
registered such objection, to confer and seek to agree with the proponents 
of the code in question." 

Office Order GS-B, January 27, 1934 (a revision of Order 63-A, of 
the same date, which in turn revised "Order 63 issued two days previously) 
provided tha,t any provision for a waiting period before filed prices 
becaJ.ie effective in codes not yet approved was to be stayed for sixty 
da>;;''s by the order of approval pending completion of a studj'' of open price 
associations. 

An unnuT-fbered Office Memorandum of January 27, 1934, concerning 
lElA review of acts of code authorities, prescribed the inclusion of the 
following ;orovision in subsequent codes: 

"If the Administrator shall determine that any action of a 
code authorit;,'- or an^'- agency thereof may be unfair or unjust 
or co-.itrary to the public interest, the Administrator may 
reo^uire that such action be suspended to afford an opportunity 
for investigation of the merits of such action and further 
.consideration by such code authority or agency pending final 
action which shall not be effective -onless the Administrator 
approves or unless he shall fail to disapprove after thirty'- 
days' notice to him of intention to proceed with such action 
in its original or modified form." 

An unnumbered Office lIemorandu:.i of Januar?/ 29, 1934 announced tha,t: 

"The following has been adopted as a standard clause provid- 
ing for uniform cost accounting and may be used also as a. 
substitute for similar clauses in approved codes if the indus- 
tries desire to change: •: 

'The Code Authority shall cause to be formulated 
an accounting system and methods of cost finding 
snd/or estimating capable of use by all members 
of the industry. After such system and.methods 
have been formulated, full details concerning 
them shall be made a.vailaJble to all members. 
Thereafter all members sha.ll determine and/or 
estimate costs in accordance with the principles 
of such methods. '" 

9S75 ■ 



n 



-11- 

Office Order 66, February 2, 1934, in part provided: 

"It is desired that the following para^aph "be recommended to 
all industries who are in the course of formulation of new codes 
or the revision of approved codes for inclusion among the powors 
and duties of the code authority: 

'To appoint a trade practice committee which shall meet 
with the trade practice committees appointed under such 
other codes as may he related to the trade/ industry for 
the purpose of formulating fair trade practices to govern 
the relationships hetween production and distribution 
employers under this code and under such others to the 
end that such fair trade practices may he proposed to 
the Administrator as amendments to this code and such 
other codes. '" 

An unnurahered Office Llemorandum of February 3, 1934, provided 
in part: 

"The following has "been approved as a standard provision 
for codes relating to limitation of prices: 

'Uhen the Code Authority'- determines that an emergency 
exists in this industr?/- and that the cause thereof is 
destructive price-cutting such as to render ineffective 
or seriously endanger the maintenance of the provisions 
of this Code, the Code Authority may cause to he determined 
the lowest reasonable cost of the products of this industry, 
such determination to he subject to such notice and hear- 
. in.'^ as the Administrator may require. The Administrator 
msQT approve, disapprove, or modify the determination. 
Thereafter, during the period of the emergency, it shall 
be an unfair trade practice for any member of the industry 
to sell or offer to sell any products of the industry for 
which the lowest reasonable cost has been determined at 
such prices or upon such terms or conditions of sale that 
the buyer will pay less therefor than the lowest reasonable 
cost of such products. 

*¥hen it appears that conditions have changed, the Code 
Authority, upon its own initiative or -upon the request of 
any interest ed party, shall cause the determination to be 
reviewed. ^" 

Office Order 71, March 14, 1934, provided that the following was 
thereafter to be included in every code which had not at that time been 
formally submitted by the industry. 

"Every eraploj'-er shall provide for the safety and health of 
eiTiployees during the hours and at the places of their emplojonent, 

"Standards for safety and health shall be submitted by the 
code authority to the Adrainistrator within six months after the 
effective date of the code." 

9S75 



-12- . 

The sajne order further provided that each code axithorit^ was to create 
a cor.rnittee on sai'ety and health to study the riuiii"ber and causes of acci- 
dents and health hazards in the industry and to recommend a plan for 
organized safety work for vaxious t;;/pes and sizes of companies and mini- 
mum staiidards for safety and health. 

Administrative Order X-51 of June 15, 1934, follows: 

"¥lienever,, in accordance \7ith the provisions of a code of 
fair, competition, a code authority submits to the Administrator 
standards for safety and. health and such standards are approved 
"by the Adrainistrator, the standards thus approved shall there- 
after he part of such code axio. shall be enforceable as such." 

An unnumhered Office remoraJidura of Maxch 19, 1934, provided 
that: ■ ,'. 

"The use of premiums or coupons may he prohibited by an 
industry when the desire for such prohibition is general, 

"Prohibition of the use of premiui:as or coupons will not be 
a.Dproved v/here a memb,er of the industry has iDeen accustomed 
to make a proper use 'of prei.ii^jms or coupons and objects to 
the prohibition." 

On June 12, 1934, Office Memorandum 232 was issued which provided 
that there should be no -g eneral provisions in codes prohibiting the use 
or premiums but that the use of oremiums in ways which involved commercial 
briber^r, lotterjr, misrepresentation, fraud, or deception in an^r form was 
to be prohibited., .Hq re oyer," inasmuch as certain uses of premiums would 
constitute methods of evading trade practice provisions, code provisions 
prohibiting selling' belov,^ cost should require that all premiums be in- 
cluded in the compp.tatipn of cost and, sinila-rly, open price provisions 
should require that all terms and conditions of sale j including premiuLis, 
be filed. 

Office Memorandum 315 of December 6, 1934, concerning premiums and 
"free deals", in essence reiterated the provisions of Office Memorandum 
232 relating only to premiums just set forth. 

Executive Or lor 6678 of April 14, 1934, set forth a clause for in- 
clusion in coder providjig for the collection of expenses of code adminis- 
tration. jJhis order, and the various Adi.iiristrative Orders on this subject 
are considered in -ohe section on '"Budgets and Assessments." (*) 

Office Llemorandum 212 of May 24, 1934, after pointing out that an 
amendjiient to the Lumber and Timber Product's Code had been approved provid- 
ing for the "establishment of rules of forest practice and the operation 
of forest areas on a sustained yield basis" provided that thereafter any 
code of fair competition covering forest operations was to include 
provision for conservation measijj*,es. 

Appended to Office Memorandum 228, issued June 7, 1934, were code 
provisions concerning open price , filing, costs and price cutting, and cost 
finding and accounting, which provisions, were to be included in codes 

(*1 See p. 59, below. ~~~~ 

9675 



-•lo— 

pending at that tine (*) and thereafter submitted hy industries desiring 
those t^'pes of trade practice provisions. The provisions follow! 

OPEN PRICE PILING 

"Section 1. Each menher of the trade/ industry shall file 
T7ith a confidential and disinterested agent of the code authority 
or, if none, then with such an agent designated "by the Administrator, 
identified lists of all of his prices, discounts, rehates, allowances, 
and all other terms or conditions' of sa,le, hereinafter in this article 
referred to as 'price terms', which list shall completely and accurate- 
ly conform to and represent the individual pricing practices of said 
member. Such lists shall contain the. price terms for all such standard 
products of the industry as are sold or off ered for sale "by said 
memher and for such nonstandard products of said member as shall be 
designated by the code authority. Said price terms shall in the first 

instance be filed within days after the date of approval of this 

provision. Price terms and revised price terms shall become effective 
imi.iediately -apon receipt thereof by said agent. Immediately upon 
receipt thereof, said agent shall by telegraph or other equally prompt 
means notify said mcmbf^r of the time of such receipt. Such lists and 
revisions, together with the effective time thereof, shall upon re- 
ceipt be immediately and simultaneously distributed to all members of 
the industry and to all of their customers who have applied therefor . - 
and have offered to defray the cost actually incurred by the code 
authority in the preparation and distribution thereof end be available 
for inspection by any of their customers at the office of such agent. 
Said lists or revisions or any part thereof shall not be made avail- 
able to any person until released to all members of the industry and 
their customers, as aforesaid; provided, that prices filed in the 
first instance shall not be released until the expiration of the 

aforesaid day period after the approval of this code. The code 

authority shall maintain a perman^^nt file of all price terms filed as 
herein provided, and shall not destroy an^'* part of such records except 
upon written consent of the Administrator, Upon request the code 
authority shall furnish to the Adrainistra-tor or any duly designated 
agent of the Administrator copies of any such lists or revisions or 
price terms. 

"Section 2. When a member of the trade/ industry has filed any 
revision, such member shall not file a higher price within forty- 
eight (48) hours. 

"Section 3. No member of the trade /industry shall sell or offer to 
sell any products/ services of the trade/ industry, for which price 
terms have been filed pursuant to the provisions of this article, 
except in accordance with such price terms. 

"Section 4. No member of the industry shall enter into any agree- 
ment understanding, combination or conspiracy to fix or maintain 
price teriQs, nor cause or attempt to cause any member of the industry 

(*) The requirement of inclusion in pending codes was not observed 
administratively in all cases and in some instances where the sub- 
stance was included modification of the wording of the Office Memo- 
randum was permitted. 

9675 



"14- 

to chsiige his price terms "by the use of intiniidation, coercion, 
or any other influence inconsist.-nt vith the maintenance of 
the free and open market which it -is the purpose of this 
Article to create." 

' COSTS AlH) PRICE GUTTING : 

"Section 1. The standards of fair competition for the industry 
v/ith reference to -pricing -oracticos are declared 'to he as folio -7 s J 

"(a) YJilfully destructive price cutting is an unfair method of compe- 
tition and is forhid'den. Any member of the industry or- of any other 
.industry or the customers of either may a.t ar^ time complain to 
. the Code Authority that any filed -orice constitutes unfair compe- 
tition a.s destructive price cutting, imperiling s'-aall enterprise 
or tending tov/rrd monopoly or the impairment of code wages and 
working conditions. The- Code Authority shall within- 5 days afford 
ajn op-oq'rtunity 'to the member filing the price to answer such com- 
plaint, and shfdl v/ithin 14 days malce a ruling or adjustment there- 
on, .If such ruling is not concurred in "by either party to the 
corap?.'ain't,,' .all papers shall be referred to the Research and Planning 
Division of iIRA which shall render a. report and recoramendavtion 
thereon to the Administrator, 

"(h) TThen no declared emergency exists as to any given -oroduct, 
there is to "be no fixed minimum "basis for prices. It is intended 
that sound cost estimating methods' should "be used and that con- 
sideration should "be given to costs in the determination of pricing 
policies, 

, "(c)' 77hen an emergency exists as to any given product, sale 
"below the stated minimum -orice of such product, in violation of 
Secti'on 2 hereof, is for"biddon. 

"Section 2. Emergency Provision s; 

"(a) If the Administrator, after investigation shall at any time 
find "both (l) tha-t an emergency has arisen within the industry 
•fidversely affecting small' enterprises or wages or labor conditions, 
or tending toward monopoly or other acute conditions which tend 
to defeat the purposes of the Act; ajad (2) that the determination 
of the stated minimum price for a specified product within the 
industry for a limited oeriod is necessary to mitigate the con- 
ditions constituting such emergency • and to ■ effectuate the purposes 
of th6 Act, ttie Code Aathority may Ccvase an impartial agency' to 
investigate costs Snd to recommend- to the Administrator a determina- 
tion of the stated minimum, price, of .the. product affected by the 
emerf^ency and thereupon the . Adinjnistra.tpr may -procfeed to determine 
such str.ted minimum price... _. ....1 

"(b) TTlieh the Administrj^tor s'hall have determined such stated 
minimum price for a specified product fbr a stated period which 
price shall.be rea;sonably calculated to mitigate the conditions 
of such emergency and to effectuate the -purposes of the National 
Industrial Recovery Act, he shall publish such price. Thereafter, 



9675 



-15- 



during such stated period, no member of the industry shall sell 
such specified products at a net realized -orice below said stated 
minimum pri.ce and any such sale shall be deemed destructive 
price cutting. From timc3 to time, the Code Authority may recom- 
mend review or reconsideration or the Administrator may cause ajiy 
determinations hereunder to be reviewed or reconsidered and 
appropriate action taken. .. 

COST FINDING AHD ACCOUNTING 

"Section . The Code Authority shall cause to be formulated 

methods of cost finding and accounting capable of use by all 
members of the industry, and shall submit such methods to the 
Administrator for review. If aporoved by the Administrator, full 
information concerning such methods shall be made available to 
all members of the industry. Thereafter, each member of the 
industry shall utilize such methods to the extent found practicable. 
Nothing heroin contained shall be construed to -oermit the Code 
Authority, any agent thereof, or any member of the industry to 
suggest uniform additions, percentages or differentials or other 
uniform items of cost which are designed to bring about arbitrajy 
uniformity of costs or prices." 

Administrative Order X-61, July 10, 1934, provided that an industry 
at that time uncodified might apply either for the Basic Code (*) 
thereunder or for "consolidation and complete coverage by the existing 
code for the proper kindred industry, subject to stay as to applicant 
industry of provisions then inconsistent 'v7ith policy." If an applica- 
tion for the Basic Code had been made by a truly representative body 
of the industry and if there had been no objection "by any party in 
material interest after ten (lO) days published notice to all concerned," 
such code was, "7\rithout further hearing, reference to Advisory Boards 
or other adiiiinistrative action, (to) become effective ten (lO) days after 
its approval ...." The order further Torovidod that if any industry not 
yet codified did not apply for the Basic Code or for consolidation 
within thirty (30) days after the date thereof and if the Administrator 
found that wages, hours and conditions of labor in such industry were 
inimical to the public interest and contrary to the policy of the Act, 
the idministrator would, within forty (40) days after the date thereof, 
provide for a hearing in accordance with Section 3 (d) of the Act to 
determine v'hether a code covering hours of labor, rates of pay, and 
other working conditions was not to be prescribed thereunder. (**) 

Administrative Order X-62, of July 10, 1934, provided that the 
General NRA Code Authority was to be appointed by the Administrator and 
prescribed its powers and duties. The same order (***) prescribed 
procedure for filing prices, reba>,tes, discounts, commissions and 

(*) See ApTDendix II. 

(**) 1^0 adrninistr.-^tive action v/as taken under the last part of this 
order. 

(***) See Appendix III. 

9675 



-16- 



condit.ons of sale -under the B-sic Code. Administrative Order X-63 (*) 
(July 10^ 1934) prescribed rules and reflations concerning wages, 
hours rjid other conditions of employment under the 3a,sic Code. 

Office i'viemorandum 267 (July 20, 1934) set forth code provisions 
which were to "be suhstsntially followed in codes Toroviding for class- 
ification of customers, 'but no such Tiro-':-'03ed provision nor any class- 
ific:-tion thereunder was to be ap"oroved if it would tend to fix uniform 
prices, discounts, or differentials, or to establish resale price main- 
tenance, eliminate or suppress, or discriminate against any customer or 
class of customers. The provisions follor/: 

"The Code Authority shall cause to be formulated and keep 
current a classification of all tyoes of customers of the 
industry. Such classification shall be subject to the dis- 
approval of the Administrctor and shall contain: (a) A 
complete list of all of the classes of customers of the 
industry, including a class to cover every known type of 
custom.er; and (b) definitions or descrrotions of the several 
cla.sres in t-.^rms of functions performed, or in other appropriate 
terms such as purcha.sers of defined quantities. ■ 

"After submission to the Administrator, if there is no dis- 
ap'oroval or request for suspension of action within twenty 
(20) days, full information concerning the classification 
shall be made available to all members of the industry. No 
one shall- by" intimidation, coercion, or other undue influence 
cause or attempt to cause the inclusion of any customer in 
or the exclusion of any customer from any class of customers, 
or the exclusion of any class of customers from the classifica- 
tion, or the use of uniform or stipulated i^rices, discounts, or 
differentials and each member of the industry may at all times 
classify his own customers in accordance vrith his own judgment," 

Administrative Order X-130, dated January 4, 1935, interpreted pro- 
visions in codes extending minimum hourly rates of -oay to T)iece-workers. 
In part, the order follows: 

"Under any such provision in any code, an employer shall com- 
pute the minimum compensation oayable to each "oiece-work 
employee on the basis of a -neriod of not more than seven con- 
socvLtive days. Each employer shall loay to each of his piece- 
work employees for work performed by said employee during 
such -eriod an amount not less than the product of the minimum 
hourly rrte prescribed in said code multiplied 'oy ^^e number 
of hours worked by said employee during such period. " 

Attached to Office Memorandum 326 of January 5, 1935, v/ere provisions 
to be used in codes in which it was desired to jregulate advertising 
allowances. The provisions follow: 



(*) See Appendix IV. 
9675 



-17- 



"ilo ine:-.oer of the trade /industry shall designate as an 
^advertising allowance*, a 'promotion allo'.'/ance' , or 'by a 
similar terra, any nr ice reduction, discount, "bonus, rebate, 
concession, or other form of allOT/ance, or any consideration 
for pxlvertising or promotion services, offered or given: "by 
him to any customer, 

"No meyilDer of the trade/industry shall offer or give any 
consideration merely for 'pushing', 'advertising', or 
other^vise. than- for definite and specific advertising or 
promotion services. Such consideration shall Ids given only 
pursuant to a separate '/written contr.'rct therefor, which 
shall specifically and completc-ly set forth the advertising 
. or .promotion services (in such manner that their specific 
■character may "be, understood "by other members of the trade/ 
industry and their customers) to be performed by the recipient 
of said consideration, the precise consideration to be paid 
or given therefor by said member, the method of determining 
performances, and all other terms and conditions relating 
thereto.^ 

Executive Order 6949^ dated Jrmuary 22. 1935^ resolved the moot 
question of the waiving of constitutional rights ''oj assenting to a' 
code by provigllng th^t it' vies, imderstood that neither the Government 
nor ex^'j meLiber of industry v/aived, cr could properly insist that the 
other hati i^aived* any constitutional right by approving, assenting to, 
or cco-;>f.ra'' i.ig.inioer- a, code. The ap"D:r6v-al orders of a) 1 codes thereto- 
fore aTjroved' were mcdiiied by that order to the extant necessary to 
make it a condition- thereof and of' all codes thereafter ap'oroved. 
(This order, affecting as it did codes previously approved, can be 
considered to have been issued under the authority of Section 10 (b) 
of the Act.) 

iiopenacd to Office Ivlombrandurn 331 (January 29, 1935) was the 
fblloT'ing orovi&ion for "iise in codes where members of industries or 
trades desired liquidated damages agreements as aids to compliance, 

"Any member of the industry (trade) may; enter into' an agree- 
ment 'ith any other member or members of the industry (trade) 
providing for the -cayment of liquidated damages by any party 
thereto u-oon violation by him of any provision of the Code, 
provided, however, that such agreement shall become effective 
and binding on the paxties thereto only after the execution 
thereof chall have received the consent of the National 
Recovery AdministxTtione " 



9675 



CHAPTER V 

ILAJCIlfG OF ES1^0R::S AM ^Tii3 KEEPIiia OF ACCOUITTS 

Section Z{pS) 



Section 3(a.) Qf the Act, i-n addition :to laying- the foiindation for 
code approval .procedure ©.nd the siihstance of codes, provided that "The 
President may, as a condition of his approval -pf any such code, impose such 
conditions (including requirements for the making of reports and the 
keeping of, accounts') for the protection of consumers, competitors, emr- 
plo3'"ees, and others, and in furtherance of the puhlic interest •«.." as 
he deemed necessary. 

As to the making of .reports. Office Order 34, dated September 12, 
1933, and Executive Order 6479 of Secemher 7, 1953, prescrihed that all 
codes J "both previously o.nd thereafter approved, "be modified to require 
that all persons suhject to a code furnish such statistical information 
as the Adrainistrabor may deem necessary for the purpose recited in ^ 
Section 3(a). These orders, hecau-se they deal \7ith the suhstance of 
codes, have "been treated fully in Chopter IV of this study, (*) 

Pursuant to the authority given the Administrator "by Executive 
Order 6479, Administrative Order X-IQ vTas issued March 16, 1934, and 
required all persons su"bject to codes to "furnish, from time to time 
such reports concerning payrolls, employees, And man-hours vrorked, upon 
forms approved "by (the Adjninistrator J arid "bearing a facsimile of (the 
Administrator's) signature as may "be requested" "by the Bureau of La"bor 
Statistics a.nd,Fede!ral BJid State agencies v:o rki ng in cooperation there-- 
rith. The identity of the firm or individur.l supplying such information 
was not to "be disclosed nor vrere individual reports to "be disclosed to 
other than STJorn employees of such agencies or of the National Recovery 
Administration, 

Office Memorandum 334 of January 31, 1935, set forth procedure for 
statistical reporting© The NHA Research and Planning Division vTas to 
request code authorities to su'bmit their statistical, forms and proced- 
ure, and cha^nges therein, for reviev: and advice, and to deposit nith 
that division tvjo copies of all summaries of price, production, la'bor 
and other statistical data promptly upon preparation* Research and 
Planning nas empor^ered to investigate the reporting systems of code 
authorities and to audit the statistical reports su"braitted "by them? also 
to collect directly from mem"bers of industry, such special information, 
not availa'ble elsenhere, as Tjas necessary from time to time for 
recommendations on questions of -oolicy. 

There xrere no general Executive or Administrative Orders issued re- 
quiring industry mem"bers to keep accounts, such requirements "being im- 
posed "by va,rious individual codes. T\7o Office Memoranda an 



(*) See rp. 8, ?, s'bove, 
9C75 



-19- 

•annuni'berea on^ of Jammrj^ 29, 1934 and No, 228 of Jime 7, 1934 pre- 

scrilDGcL cost accoTaiting provirsions for inclusion in codes rhere in- 
dustries desired such -orovisionsa These two memoranda have "been treat- 
ed in Chapter IV hereof, (*) 



(*) See pp. 10, 12, 15, a.l:ove,- 
9675 



-20- 
CHAPTER VI 
EXEMPTIONS A1!D STAYS' 
Section 3(a) 

This chapter is divided into tv70 parts - in one of which are con- 
sidered the various orders prescriuing procedure and delegating powers 
concerning exemptions while the other setn forth the various exemptions 
granted "by general Executive and Administrative Orders. 

A. Procedure and De l egation 

Section o(a) of the act in part provided that "the President may, 
as a condition of his approval of any sucli code, ...provide such excep- 
tions to and exemptions from the provisions of such code" as he in his 
discretion duemed necessary to effectuate the policy of the Act. If 
Section 3(a) peraiitted of exceptions ,and exesiptions only at the time of 
code a ;roval, then section 10(1)), in providing that the President might 
"from time to time cancel or modify" any order or approval under the Act, 
appears to provide the legal "basis for exemptions and exceptions at any 
time d'oring the life of a code. 

The President ty Executive Order 6205-3, da.ted July 15, 1933, dele- 
gated to the Administrator authority, if justice required, to stay the 
application of a code if persons who had not "participated in establish- 
ing or consenting to a code" made application within ten days of the ef- 
fective date for an exception to, exemption from, or modification of the 
code. Such oersons so Dp'plying were to "be "given an opportunity for a 
hearing and determination of the issues raised prior to incurring any 
liability to enforcement of the code..." 

The Administrator wp.s empov/ered by Executive Order 6443 of November 
22, 19.S3, to raal:e such modifications or grant such exceptions to or ex- 
emptions from a,t7;reenents under the Act as, after investigation, he mi.rht 
find necessary in particular instances in order to avoid undue hardship. 
This authority, however, did not relate to modifications of or exemp- 
tions from codes . 

The procedure for grantin-:^ exemptions on account of shortage of 
workers was set forth in an unmimberec. Office I.Iemorandum of December 7, 
1933. After stating thcit the cardinal princi">^le governing decision on 
exemptions was to spread emplo^'Tiient, this moinorandum provided that ex- 
emptions were not to be granted unless it was demonstrated, by certifi- 
cate from the state branch of the IT. S. Employment Service, if possible, 
that there wore no available competent men for the required work. The 
petition for exemption was to be passed on by the proper code authority 
v/hose recomiiendation was to be NEA's guide save in exceptional cases; 
the petition was to be approved by labor, industrial and legal advisers; 
further, a hearing v/as to bo denied to no one and wherever practicable 
v;as to be held prior to granting an exe.rotion but in any case the Admin- 
is tro-tor's order wa.s to be fr.amed so that objections could subsequently 
be heard. If information other than that supplied by the applicants for 
exeuptions as to the availability of v/orkers was not o"btainable, it was 
considered desirable that exemptions be conditioned upon the pa.yment of 

9575 



-21- 

an increased rate for all hoiirs over .those prescribed in the code. It 
was fiu'ther provided that exemptions shoulC. "be granted for the shortest 
prcacticatle definite period, with posci'de extensions. 

(This Office Meraorandiun apparently riit.ticipated Executive Order 6543- 
A, set forth "below, hy freely stating that "the Administrator has the 
power ajid authority to grant these exempt ioiis" even though Executive Or- 
der 6443, issued only two weeks earlier, expressly stated that the Ad- 
ministrator's authority did not extend to exemptions from codes. Further- 
more, Executive Order 6205-A, dr;.ted J'aly 1;5, 1Q33, gave the Administrator 
authority among other things "to conduct such hearings and to exercise 
such other functions as are vested" in tho President "by Title I of the 
Act, except the approval of codes, etc. The exception of code approval 
from the Administrator's jurisdiction "by tnis earlier order would seem 
to indicate exemption-granting was li]:ewise excepted, and the further 
fact that Executive Order 6443 of llovcmher 22, 1933, excluded the grant- 
ing of exemptions under codes makes this positive.) 

An Office Kemorand-urn superseding that of December 7, 1933, undated, 
"but apparently issued March 15, 1934, further provided that petitioners 
for exemptions on account of shortage of vrorkers "should suhrait adequate 
information on hours, n^jmber of employees, wages, and nature of work in 
order to substantiate tho need for exemptions." By that time, also, it 
was tho-ught that "hy reason of the urgency of most such requests there 
will "be no opportunity for prior hearing" "but suhsequent objectors were 
to he heard. The concept of the "shortest practicable definite period" 
had also changed but it was conceded that "exem'otions should be express- 
ly subject to cancellation, in the event of showing of proper c?:ase 
therefor." 

By Executive Order 6543-A, issued December 30, 1933, the Adminis- 
trator was delegated authority to aporovo any <'::jnendraent or modification 
of, exception to or exemption from, or elii.iination of any one or more 
provisions of any code. 

Division Administrators were fcrmsl^.y given authority to grant or 
deny exemptions on January 16, 1934, by Office Order 60. At least, that 
order stated that final rulings on exemptions nhould be made only "by 
the division administrators, subject to the disapproval of the Adminis- 
trator." 

Administrative Order X-27 of May 5, 1934, prescribed rules and 
regulations concerning exemptions, the term being defined as including 
exceptions, stays, and "all rulings whereby an individual, group or 
class is released from the full operation of a provision of a code." 
The procedure prescribed was that all proposals for exemptions filed 
with the Code Authority w;e re to be considered by it and forwarded, to- 
gether with its recomiaendation thereon, and v/ith reasons for such recom- 
mendation to the National Recovery Administration through the Adminis- 
tration Member, at the earliest possible mo:nent and, in any event, within 
ten days of the filing thereof, for such action as might be found ap- 
propriate. When it appeared to the satisfaction of the Administrator 
tha.t any such proposal would tend to effectur.te the policies of the Act, 
he \7as to give his approval. 

9675 



A portion o? the Office Mpnual* issued on AiigUot 30, 1934, largely 
recapitulated tl^o content of orders previously issued on exemptions. 
By thr.t time it vras recognized that "gro-u?p e-em'otions and stays should 
"be liEiited to a definite period of tine, since permanent changes of this 
nature should he effected hy code a'liendraent" , hut in all cases they 
should he expressly suhject to cancellation. No one other than a Divi- 
sion Administrator was authorized to grj?nt exemptions or emergency st3,ys 
and only the Administrator v;as to issue final rulings on stays. Appli- 
cations for exemptions were to he made either to KRA or to the code 
authority hut all applications, except those for emergency exemptions., 
were to he referred to the Code Authority for finding? of fact, recom- 
mendations and the reasons therefor. The deputy was also to use the 
fact-finding facilities of the Research and Planning Division and in 
cases where the code authority was unahle to furnish necessary facts the 
deputj'' might request the Chief of the Compliance Division to assign a 
field investigator to make the necessary survey. It was incumhent upon 
the applicant to suhmit adequate inforina.tion on hours, numher of em- 
ployees, wages and nature of work to suhstantiate the alleged need for 
Gxenptiono. 

Further clarification of the exemption process v.'as contained in 
Office iicmorandum 319 of Decemher 13, 1934. A petition for exemption 
did not automatically stay the provisions of a code except in the case 
of petitions within the terms of Executive Order 6205-B. The effective 
date of pTi.y exemption wa.s to he fixed hy the order of approval. Exemp- 
tions from lahor r^rovisions were not to he made retroactive. Violations 
of code provisions prior to exemptions were within the jurisdiction of 
the Compliance Division; hence, the chief of that division was to he 
consulted hefore granting retroactive exemptions. Petitions for exemp- 
tion from hour ana wage provisions on the sole claim that compliance 
there\7ith wp.s iinpossihle for financial reasons, even v/herc employees 
were i-illing to agree and competitive advantages were unimportant, were 
to he granted only upon full evidence of great and unusual hardship. 
Exemptions were not to he granted on grounds of non-compliance on the 
part of co';.-.x3 titers . A finding of violation was not to prejudice the 
right to petition for exemption hut the circumstances of the violation 
were to ho taken into consideration in actipn on the petition. Deni-al 
of a i^etition was to he considered as lepving the situation as if no 
petition had heen made-, so that the case with, respect to violation and 
restitution was to he considered on its merits as if there had heen no 
petition. 

On April 15, 1935, under Office Memor,andujn 352, standard forms were 
issued for use a.s appropriate in the various types of exemption appli- 
cations, suhject to revision where not ada.ptahle. 

B . Q-eneral Exemption Orders 

Executive Order 6354, dated Octaher 23, .1933, in releasing employers 
engaged only locally in retail trade or service industries who were not 



The Office Ma.nual, the first edition of v:hich was issued August 29, 
1934, superseded all previous Office Orders and Memoranda. 



;675 



-23- 

employing more than five persons and were located in towns under 2500 
population from conplismce with provisions of the PlIA, also released 
such employers from obligations not voluntarily assumed under the pro- 
visions of a code approved "by the president. This order was intended 
to relieve small "business enterprises in snail tov^Tis from fixed otligar 
tions which might impose exceptional hardship tut it was expected, as 
stated in the order, thixt all nucli enterprises would conform to the 
fullest extent possible v;ith the re q'L.ireraents, which would "be otherwise 
obligatory upon them. 

Executive Order 6710 of I.Iay 15, 1?C^4, modified Executive Order 6354 
by exempting employers engaged only locally in retail tra.de or local 
service trades or industries who operated "not more than three establish- 
ments and whose place or places of "business was or were located in a 
town or towns each of less than 2500 population from those provisions of 
the PEA and of approved codes which related to hours of employment, 
rates of pay, the minimum prices at which merchandise might "be sold or 
services performed, and the collection of assessments, except in so far 
as any such employer after the effective date of the order might signify 
to the Administrator his intention to "be "bound by such provisions. 

Executive Order 6723 of I.Iay 26, 1934, suspended, until further 
orders, all provisions in codes of such service trades or industries as 
were thereafter designated by the Administrator, except provisions gov^ 
erning child labor, maximum hours of work and minimum rates of pay and 
the mandatory provisions of Sections 7(a) and 10(b), 

Administrative Order X-37, also of Kay 26, 1934, designated the 
following service trades for inclusion vdthin the purpose and intent of 
Executive Order 6723: I.Iotor "Vehicle Storage and parking, Bowling and 
Billiard, Barber Shop, Cleaning and Dyeing, Shoe Rebuilding, Advertis- 
ing Display Installation, and Ad.vertising Distributing Trades. 

Administrative Order X-50 of June 15, 1934, designated the Laundry 
Trade and Administrative Order X-54 of June 28, 1934, designated the 
Hotel .Industry for inclusion within the intent and purpose of Executive 
Order 6723. 

Administrative Order X-4, dated January 23, 1934, (to become ef- 
fective within ten days) exempted members of industries who sold or 
might sell supplies or materials to hospitals of the United States which 
were supported by public subscription or endo\'7ment, and not operated for 
profit, from compliance with provisions of applicable codes governing 
sales. The exemption was limited to, and operative only in connection 
with, sales made by such members to such institutions. This order V7as 
stayed for thirty days by Administrative Order X-5, of February 2, 1934, 

Administrative Order X-8, March 3, 1934, made permanent the stciy 
of Administrative Order X-4 in so far as it affected the X-Ray and 
Electro-Medical j^paratus Industry as covered by the codes for the 
Electrical Manufacturing and Scientific Apparatus Industries and all •. 
other industries, which sold a substantial part of their supplies or 
materials to hospitals. 



9675 



-24- 

Administrative order X--24 of ^ril,21, 1934, extended the permanent 
stay of Order X'-4 to the Signalling Apparatus Sul^di vision of the Elec- 
trical luanafacturing Industry, Administrative Order X-39, May 28, 1934, 
provided that thenceforth meinhers of theBituninous Coal, ^nolesale Coal 
and PuCtail Solid Fuel Industries were not exempted in any respect from 
full compliance with provisions of their codes in selling coal to 
hospitals. 

While not specifically an order derJLing v/ith exeniptions, Executive 
Order 6606-F, dated Eehruary 17, 1934, constituted in suhstance an ex- 
emption as to handicapped workers a:id therefore is here referred to. It 
set forth ruiles and regulations and provided that no code provision was 
to be so construed or applied as to violate such regiila-tions. In sub- 
stance the order provided that "a person v;hose earning edacity is 
limited because of age, physical or cental handicap, or other infirnity, 
may be employed on light work at a wage below the rainiiiiuia established 
by a code, if the employer obtains fro':i the state authority, designated 
by the United States Department of Labor, a certificate authorizing 
such person's enrployment at such wages and for such hours as shall be 
stated in the certificate ... Each employer shall file monthly with the 
code authority a list of all such persons employed by him, showing the 
wages paid to, and the maximum hours of work f.or such employee." 

Administrative Order X-9,. dated March 3, 1934, provided that 
"charitable institutions, or activities thereof conduct'ed not for profit, 
but for the purpose of providing remunerative emplo^Tnent for physically, 
mentally or socially, handicapped workers" (which institutions and activ- 
ities were thereafter referred to as 'sheltered workshops') were exempted 
from codes covering activities in wliich they were engaged, on the con- 
dition that any sheltered workshop in order to become entitled to such 
exenrption sign a pledge that it "oald not: "(l) employ minors under 
sixteen (15) years of age, except such as are there for in struct ionaJ. 
purposes as approved by a Regional Committee ... . (2) engage in de- 
structive price— cutting or any other unf.air method of competition, 
(3) wilfully hamper or retard the purposes of the Act. 

TJhile not termed an exemption order. Executive Order 6711-A, 
dated May 15, 1934, did in effect exempt certain persons from provisions 
of codes abolishing homework. The order provided that a person phys- 
icaJ-ly incapacitated for work in a factory or other regular place of 
business and free from any contagious disease, or a person whose ser- 
vices were absolutely essential for attendance on a person who was bed- 
ridden or an invalid and both such persons were free from any contagious 
disease, might bs permitted to engage in homework at the same rate of 
■wages as were paid for the same type of work performed in the factory 
or other regular place of business if a certificate was obtained from 
the state authority or other officer designated by the United States 
Department of Labor, Any employer engaging such a person was to keep 
such certificates on file and was to file with the code authority con- 
cerned the name and address of each worker so certificated. The order 
was not to apply to any codes theretofore or thereafter approved for 
"food or allied products trades, industries or subdivisions thereof, 
which contain provisions prohibiting the manufacture and/or processing 
of food "oroducts in homes," 



9675 



-25- 

Executive Order 6?50~c, dated June 27, 1934 (effective July 15, 
1934) was in effect an exemption from the minimam V7a!p;e and maxira-um hours 
provisions of codes for meraoers of industries employing apprentices, if 
certificates permitting the employr^.snt . of such persons in conformity with 
a training progra^i were first obtained frc::a an agency to he designated 
by the Secretary of Lator. The term, •'appi.-'^.i'itice'' \7aq, clofined to mean a 
person of at least 16 years of ago who hc^d entered into a written con- 
tract with an employer or an a-ssociab: o"i of einployers which provided for 
at least 2,000 hours ,of reasonahly continuous employraiGnt for such person 
and his participation in .em approved program of training. 



9675 



-26- 

CHAPTER Vil 

COICPLIMOE AND ENFGRCElffilW 
Sections 3 ("b) . (c), and (f) 

This chapter sets forth the content of orders relating to coiiipliance 
and enforcement; however, orders dealing v/ith NRA. insignia and its with- 
drav/al in the event of non-corapliance are considered in Chapter XXIII , 
hereof,* 

Secticn 3(13) of the Act provided that the provisions of an approved 
code v-ere tc "be the standards of fair competition for the trade, inrlustry 
or suhdivinion thereof, and that any violation of such standards in any 
transactions in or affecting interstate or foreign commerce was to "be 
deemed an unfair method of competition in commerce within the meaning of 
the Pedero.1 Trade Commission Act, as amended. 

Section 3(c) of the Act invested the several district courts of the 
United States with jurisdiction to prevent and restrain violations of any 
code of fair competition approved under the Act and imposed upon the sev^* 
eral district attorneys of the United States, in their respective dis- 
tricts, under tho direction of the Attorney G-enerri". .. ohe duty of institu- 
ting proceedings in equity to prevent and restrain such violations. 

Section 3(f) of the Act provide^ that any violation of any provision 
of an approved code in any transaction in or ^affecting interstate or 
foreign coiximerce was to he deemed, a misdemeanor and upon conviction 
thereof an offender was to he fined not more than $500 for each offense, 
and. each day such violation continued was to he deemed a separate offense. 
It must he noted here that Section 10 (a) of the Act prescribed a fine cf 
not to exceed $500 or imprisonment for not to exceed six months, or hoth, 
for violations of rules and. regulations issued hy the President und.er 
the Act, 

The Act authorized voluntary codes of fair competition (Section 
3(a)), mandatory codes (Section 3(d)), lahor agreements (Section 7(h)), 
voluntary agreements (Section 4(a)), limited lahor codes (Section 7(c)), 
and. licensing (Section 4(h)), The powers given under Sections 3(d), 
4(h) and 7(c) were never exero.ised and no penalty was provided in the Act 
for violations of agreements entered into under Section 4(a),** 

The first order relating to the suhject of compliance was Executive 
Order 6246, dated August 10, 1933, which provided that every contract 
entered, into within the limits of the United States, hy the United States 
or Diij of its agencies or instrumentalities for supplies mined, produced, 
or manufactured in the United States, was to require the contractor to 
comply with all provisions of the applicable approved code, or, if there 
was no approved, code, with the provisions of the President's Reemployment 
Agreement, \7ithout regard to whether the contractor is himself a party 
to surh code or agreement, 

* See p. 55, helow 
** However, hy way of penalty, the Blue Eagle insignia was withdrawn by 
NRA for violation of such agreements, 

9675 



-27- 

Executive Order 6337, Of^-tober 14, l933t provided that no one nas 
falsely to represent himself as discharging the' o"blig?cti^<rtie or con^ilyiiig 
with the previsions of the President's ReenTploynent Agreement or of cjny 
approve^' oo'^e or of any rule or regulation presorihed to.narry out the 
purposes of the Act, 

(office Order 40, Oct.o"bor 26. 1953, . established the Compliance 
Division, headed "by a National Gompliaice Eir'ectdr.-. and charged with the 
duty of endeavoring to adjust all ci^Dplaints of violations; also, the 
National Gorapliance Board which, upon reference of complaints from the 
Conrpliance Director, was to undertnJre further attempts at adjustment, 
recommend exceptions, remove the Blue Eagle, or recommend reference tr . 
the Federal Trade Commission or the Attorney General for appropriate 
action, ) •' " . 

Office Order 51, dated Deceraher 27, 1933, instructed each Deputy 
Administrator to advise each Code Authority that no suit to enforce a 
cods was to he "brought \7ithout prior approval of NRA and that any liti^^ 
gat ion 'against a code authority was to "be reported promptly to NRA, all 
communications to "be addressed to the deputy in charge of the code. 

Executive Order 6590-B, issued Fehruary 3, 1934, d.elegated authority 
to the Administrator of ERA to prescri"be rules and re;gulations requiring 
persons suhject to codes to post or display the terras and previsions of 
said, codes, or otherwise "bring such terms and provisions to the attention 
of any and all interested, persons, including employees. The Administra- 
tor v/as further authorized to take such steps as he might deem ad.visahle 
to effectuate such rules and. regulations prescihed "by him. 

Administrative Order X-6, Ee"bruar2'- 12, 1934, prescri"bed rules end. 
reguLr.tions governing the posting of lahor provisions of codes as fol- 
lows: That every person suhject to any code was to register, within 
thirty days of the ord.er, the effective date of the code, or the da.te 
upon which he "became suhject, whichever v;as latest, the full name of his 
enterprise, together with a statement of the num"ber of shops, esta'blish- 
ments or separate units thereof and their location, rjith the code author-^ 
ity of the trade or industry of v.-hich he \7as a mem"ber. Upon registra- 
tion, or as soon thereafter as was possi"ble, each such person was to "be 
furnished, with official copies of provisions of the code to \7hich he was 
suhject relating to hours of la"bor, rates' of pay and other cond.itions rf 
eraplojnnent , such copies to "be kept conspicuously posted, at all times "by 
such person in each shop, esta"blishment or separate unit of his enters 
prise to the extent necessary to make them freely accessi'ble to all e]>- 
ployees. The employer was also to secure from the cod-e authority and to 
post alongsid.e the copy of code provisions a certified copy of any 
exemption, exception or modification permitting him to pay lower wages 
or work his employees longer hours or establish conditions of employment 
less fa.vorahle to his employees than those presci"bed "by the suhject cod.e. 
No employer was to display incorrect copies of cod.e provisions or exer.TO— 
tions; he was to post provisions of each code to which he was su'bject 
and was to comply with any code provisions relating to posting. 

Administrative Order X-7 of Ee"brua.ry 28, 1934, superseded Adminis'- 
trative Order X-6 concerning regulations governing the posting of lahor 



T^rovisions, The later or'-ler ma^ie it in 01^1111:3 ent upon the employer to ap- 
ply to his code authority or co'le authorities for official copies of 
labor 3^rovision<; within forty-five days of the da.te of the order, the 
effective da.te of "the code or the date upon uhich the applicant "became 
suhject to the code, whichever was latest. In addition, the AtSministra- 
tor^s power to remove the Blue Eagle for failure to comply with those 
regulations was set forth, 

Ar'ninistrative Order X-82, September 1, 1934, added to the regular^ 
tions governing posting. of labor provisions the proviso that officisJ. 
copies, in addition to containing provisions of codes relating to hours 
of labor, rates of pay and other conditions of employment were to con- 
tain such conditions, orders, interpretations, explanations or statements 
issued, by the President or the, Administrator as part or in connection 
with DJij order approving a code or anj'- amendment thereto relating to 
labor xjrcvisions; other interpretations, orders and explanations, a-11 to 
such extent as NHA might d.eem ad.vina-ble to effectuate the purposes of 
those rules and regulations in the. case of each code, 

(office Order 74 .of I.iarch 25, 1934, established, the Litigation 
Division und.er the G-eneral Counsel to coordinato all ITHA litigation,) 

Adziinistrative Order X~12 of I.Iaroh 3C , 1934, provided that all in- 
dustries operating und.er approved codes requiring the creation of agencies 
for the adjustment of either labor complaints, and disputes*, or both, 
were innediately tr- set up such agencies unless they had already d.cne so, 
Where a cod.e required only one agency to handJ.e either labor complaints 
or disputes, the industry was to create .immediately another agency to 
handle the other type of cases. Industries operating uiider cod.es not 
providing for the creation of agencies to handle labor complaints and 
disputes were to create Industrial Relations Committees to handle both 
types cf ca.ses, while industries which already h^d Industrial Helations 
Comixiittees were to report immediately to the Administrator on the person- 
nel, scope and functioning of their committers. ,..., 

(office Order 85 ©f April 12, 1934, reorganized the Compliance 
Division, established, by Office Ord.er 40, and. provided for a Chief of 
the Division instead of a National Compliance Director, which position 
was abolished,) 

Administrative Ord.er X-29, May 12, 1934, provided that all code au- 
thorities and. industrial ad.justment agencies theretofore authorized to 
handle a particular type of complaint !'in the first instance" were there- 
by officially authorized to handle such complaints, ' Ood.e authorities and. 
industrial ad.justment agencies not yet authorized to handle complaints 
were not to represent themselves as so authorized and were to apply for 
such authorization, provided, however, that all code authorities were 
permitte d to hand le complaints fi l ed, with them voluntarily by the comr ^ 
plaingjit . If complaints of a character which a code authority or in- 
dustrial adjustment agencj^ was "oificially authorized" to handle were 
filed with 1-IRA, they were to be forv.-arded to the officially authorized 

* Cf. Bulletin No,' 7, Janua,ry 22, 1934, Hanv^l for the Adjustment of 

.C'"ai^laints by State Directors and Codo Authorities , See Appendix V, 

9675 ■ 



■ -29- 

code authority or agency imless the complainant had indicated that he pur- 
posely filed the complaint v/ith the NEA or the substance of the complaint 
so indicated. 

Executive Order 6711, May 15, 1934, prescri^bed that no employer sub- 
ject to a code was to dismiss or demote any employee for mak:ing a com- 
plaint or giving evidence with respect to an alleged -violation of the pro- 
visions of any code. 

(Office Order 90, May 21, 1934, aoolished the national Compliance 
Board, estal^lished "by Office Order 40, dJjcI transferred its functions and 
personnel to the Compliance Division. Oiiice Order 92, undated, "but ap- 
parently issued June 1, 1934, created the office of Assistant Administra- 
tor for Field Administration to whom the Compliance and Litigation Divi- 
sions were to report. ) 

Administrative Order X-69, July 27, 1934, abrogated Administrative 
Order X-12.* Code Authorities that had not already done so were requested 
to submit to the Administrator for approval plans for the handling of 
labor complaints , which might be handled by a bi-partisan committee or by 
a committee of impartial members; in either case, the plan of organization 
and the personnel of the committee were subject to NRA approval. Groups 
of related trades or industries might cooperate in establishing a single 
committee; or, if an industry, due to small size or other good cause, re- 
quested that labor complaints be handled by the Compliance Division, a 
decision would be reached in the light of the particular facts involved. 
This order did not affect boards theretofore authorized to deal with labor 
disputes, but any industry contemplating such a board was advised to con- 
sult with the National Labor Relations Board created under authority of 
Public Resolution 44 of the Seventy-third Congress by Executive Order 
6763 of June 29, 1934. Cases heard "by boards theretofore or thereafter 
authorized to deal with labor disputes might be reviewed by the National 
Labor Relations Board. 



* See p. 28, above. 
9675 



CHAPTER VIII 

iivi?osi]D cones 

• Section 3(d ) 



Section 3(d) of the Act ;;>rovid9d: 

"Upon his own motion, or if complaint is made to 
the President that aousec inimical to the public interest 
and contrexy to the policy herein declared are prevalent in 
aXLZ'' trade or industry or subdivision thereof, and if no 
code of fair competition therefor has theretofore been ap- 
proved b-' the President, the President, after such public 
notice and hearing as he slia.ll specify, maj'' prescribe and 
approve a code of fair competition for such trade or industry 
or subdivision thereof, which shall have the same effect as 
a code of fair conpetitjon approved by the President under 
subsection (a) of this section." 

The pouer delega^ted to the President to iiiipose codes was never 
exercised and no orders were issued under the au-thority of this sectio-n:,- 






9S75 



-ol- 
CHAPTSll IX 
IMPORTS 
Section 5 (e) 

Section 3 (e) of the Act follov/s: 

"On his own notion, or if any labor organization, or 
any trade or industrial organization, association, or group, 
which has complied with the pro'/isiorxS of this title, shall 
make complaint to the President that any article or articles 
are "being imported into the United States in suhstantial 
quantities or increasing ratio to domestic production of any 
competitive article or articles and on such terms or under 
such conditions as to render ineffective or seriously to en- 
danger the maintenance of any code or agreement under this 
title, the President maj^ cause an immediate investigation to 
"be made "by the United States Tariff Commission, which shall 
give precedence to investigations und.er this suDsection, and 
if, after such investigation and such pulDlic notice and 
hearing as he shall specify, the President shall find the 
existence of such facts, he shall, in order to effectuate 
the policy of this title, direct that the article or articles 
concerned shall "be permitted entry into the United States 
only upon such terms and conditions and subject to the pay- 
ment of such fees and to such limitations in the total 
quantity which may "be imported (in the course of any specified 
period or periods) as he shall find it necessary to prescribe 
in order that the entry thereof shall not rend.er or tend to 
render ineffective any code or agreement made under this 
title. In order to enforce any limitations' imposed on the 
total quantity of imports, in any specified period or periods, 
of any article or articles under this subsection, the 
President may forbid the iiiportation of such article or 
articles unless the importer shall have first obtained from 
the Secretary of the Treasury a license pursuant to such 
regulations as the President raa;>'- prescribe. Upon information 
of any action by the President under this subsection the 
Secretary of the Treasury shall, through the proper officers, 
permit entry of the article or articles specified only upon 
such terms and conditions and subject to such fees, to such 
limitations in the quantity which may be imported, and to 
such requirements of license, as the President s"hall have 
directed. The decision of the President as to facts shall be 
conclusive. Any condition or limitation of entry under this 
subsection shall continue in effect until the President shall 
find and inform the Secretary of the Treasury that the con- 
ditions which led to the imposition of such condition or 
limitation upon entry no longer exists."... 

(Office Order 33, dated Septei'iber 8, 1933, established the Imports 
Division as an administrative agency to "liandle all requests" to the IIEIA 
under the foregoing provision. The order further provided that an 



-32- 

industr"' was to be e:qpected to make a prima facie case "before the case 
would be referred to the President.) 

Executive Order 6353, dated October 23, 1933, empowered the 
Acijninistrator to maive such preliminary investigations as he night deem 
advisable \7ith reference to matters relating to relief under section 3(e) 
of the Act and to prescribe regulations governing the maJcing of com- 
plaints under the said section. With reference to any complaint or 
preliminary investigation the Administrator was to be entitled to such 
sworn or unsworn information from interested parties as he might deem 
desirable, was to determine whether the facts disclosed appeared to 
warrant further investigation, and was to make recommendations to the 
President who would either direct that no further action be token or 
that the United States Tariff Commission make an immediate investigation 
with such public notice and hearings as the President specified. The 
findings of fact, report of all proceedings, and the recommendations of 
the Tariff Commission were to be transmitted to the President with a 
copy to the Administrator who was also to malce recommendations to the 
President concerning action to be taken. 

Office Ordo- 37, dated October 24, 1933, pre-. v.-. .-d rules and 
regulations c^ivi.-^rn.lng the form in which complaii.'.'' '.;a>-er Section 3(e) 
were to be r::-.'!.-" ano. t.t -cached thereto were blanlcs .: v' 1 i-ig for detailed 
inform.ation coLccming each commodity the imports oi vhich were the 
subject of c.VT.i'-.int. (*) 

(Office Order 37-A, October 24, 1933, named tm« Chief of the 
Imports Division ai tlie NBA official to exercise the power of the 
Administra.tor under Executive Order 6353, under supervision of the 
Admi nistrator.) 

An Office Iv'emorandum, unnumbered, of November 17, 1933, pre- 
scribed that code provisions which directly or indirectly would restrict 
or handicap iinportations were to be avoided inasmuch as Section 3 (e) 
provided a method for relief where an industry was subjected to increas- 
ing competition from imports. Importers were to be given an opportunity 
"tro attend hearings and present their vicvvs and objections concerning 
ginj'' provisions possibly affecting imports. 



(*) See a.p;oendix VI 
9675 



-33- 

CEAPTER X 

VOLUNTiiEY AGHEE.2NTS 

Section 4 (a) 

Section 4(a) of the Act authorized the President "to enter into 
agreements rith, end to approve voluntary agreements 'bet'i^een and araon^, 
persons en^c^ed in a trc-dLe or industry, labor organizations, and tred-e 
or industricl orggnizations, associations, or groups, relating to any 
trade or industry, if in his judgment such agreements will aid in ef- 
fectuo'.ting the policy of this title v/ith respect to transactions in or 
affecting interstate or foreign commerce" and provided such agreements 
would not permit monopolies or monopolistic practices. 

During the code period of IT£U>, the president's lieemployment Agree- 
ment v/as the most important formul'':-.ted under Section 4(a). Others enter- 
ed into under this section of the Act were territorial said service trcd.es 
agreements as well as ruboer tire mejiufacturers '. and distributors' end. 
captive mine agreements. This portion of the study sets forth the sub- 
stantive content of orders reletting to (1) the President's Rpemplnyment 
Agreement, (2) territorial agreements, (3) service trades agreements, 
and (4) voluntary agreements as authorized under Public Resolution 26 of 
the 74th Congress. 

A* President's Eeemployinent Agreement 

uBA Bulletin Uo. 3(*) d£.ted July 20, 1933 outlined the President's 
emergency reemployment drive extending from AiJgust 1 to December 31, 1933, 
and set forth the president's Reemployment Agreement under authority of 
Section 4(r^,) of the Act. This bulletin was issued over the signature of 
the Administrator and approved by the Special Industrial Recovery Board. 
In brief, signers of the PRA agreed (a) not to employ any person under 
16 yecrs of er^ except that persons between 14 and 16 might be employed 
("but not in manufacturing or mechanical industries) not to exceed three 
hours per dcy between 7 a._ m. and 7 p. m. in such work as would not in- 
terfere with hours of day school; (b) not to emplo;'- c:ij clerical or of- 
fice enplo;^''€s more than forty hours in any one weelc; (c) not to employ 
aJiy factory or mechanical worker more than a maxinrom week of thirty-five 
hours until December 31, 1933, and not more than 8 hours in any one day, 
but iTith the right to. work a maximuin week of 40 hours for any 6 weeks with- 
in the period; (d) these maximum hours not to apply to employees in es- 
tablishments employing not more than two persons in towns of less than 
2,500 popijlation r*or to employees in a managerial or executive capacity; 
(e) not to pa^' any clerical or office employee less than $15 per week in 
cities over 500,000 nor less than $14.50 per week in cities between 250,- 
000 and 500,000, nor less than $14 per T.-eek in cities between 2,500 and 
250,000; (f ) not to pay any lactorj or mechanical worker less than forty 
cents per hour unless the hourly rate for the same class of work on July 
15, 1929, was less than forty cents, in which latter case not to pay less 
than the hourly rate on July 15, 1929, and in no event less than thirty 
cents per hour; and (g) not tc reduce the compensation for employment not 
in excess of the mininrom wages of the PSA. 

(*) See Appendix 711 
-9575 



«34- 

(The PIsA. Policy Boia"d v;as apoointed under Office Order IS, Aw:ust 7, 
1933, rJid •..\?,s authorized to issue all PPJl interpretations and to consider 
all petitions for substitutions of code provisions for PEA provisions.) 

Ixecutive Order 6246, dated Au^-ust 10, 1933, recuired contractors 
supplying the United States or ru)y of its agencies or instrumentalities 
to coLToli'' v;ith the provisions of the P^iA.* 

Zxecutive Order 6304, of Octooer :-), 1933, raodified that part of the 
PRA- prescribing a maxiraum week of 35 hours for factory or mechaniccd T.-ork« 
ers by eliminating the permissive six-v-ee]: "peek period of 40 hours per 
week for enployers who signed the PHA on or after October 1, 1933; prior 
signatories were not affected by this order. 

rriecutive Order 6337, dated October 14, 1933, provided as a rule end 
regulation \umer Section 10(a) of the Act that no one was to represent 
himself falsely as discharging the obligations or complying with the pro- 
visions of the P5A.** 

rzecutive Order 6354, October 23, 1933, modified eJiy provisions of 
any order, approval, rule 'or regulation theretofore issued under the Act 
inconsistent therewith. and provid-ed, ajnong other things, that provisions 
of the Pilal were not to apply to employers engaged only locally in retail 
trade or service industries who do not employ more than five persons rnd 
who iX'e locr.ted in towns of less than 2500 population, except such em- 
ployers v:ho had signed the PHA ojno. wished to continue in compliance there- 
with.*** 

::::ecutive Order 6710,**** dj.ted i.:ay 15 1934, moo.ified Executive Or- 
der 6354 b^- e::einr)ting employers engaged only locally in retail trade or 
service tr. c.es or industries who operated notmore than three establish- 
ments each locc' ted in a town under 2500 population from the wage and hour 
provisions of the TJA, except in so far as any such employer should signify 
his intention of being bound b:/ such provisions. 

Liiecutive Order 6443, November 22, 1933, authorized the Administrator 
to m:;ke ruch ..modifications of,, and. grant such exceptions to, and exei.rptions 
from, agreenents entered into under the Act as he might, aJter investiga- 
tion, find necessfXy in particular instances to avoid undue nrxdsnips. 

Ii::ecutive Oraer 6515, d-.ted Decewioer 19, 1933, extended the p?^4. 
from Jc^iua-.v 1, 1934, to April 30, 1934,' or to any esTlier date of approv- 
al of an applicable code, Display of the 31ue Eagle on or after Jmucry 
1, 1934, by employers who had earlier signed the PEA was to evidence their 
acceptajice of the PRA extension, employers who had not yet signed might 
still do so, gjid all substitutions and exemptions approved and all excep- 
tions grcnted to particular employers before January 1, 1934, were to ap- 
ply to the extended PEA, 



* See p. r;,^, r.bove, Lud p. 61, below, for fuller discussion of this 

order 
** Tor a fuller discussion of this order, see pp. 5,27 above and p. 55 

below 
*** See also p.. 22, above ' 

**** Por fuller discussion of this order see p. 25,. above.. 

9675 



-35- 

E:cecutive Order 6678-A of April 14, 1934, further extended the PRA. 
from lla;;' I3I934, as to any pr.rt of an emprcyex's "business not suliject tc 
an approved code until such tijne as that part of his-tnisiiLess becai.ie guTd- 
ject to c.n e.pproved code, Eiaplovers who had not signed the ?R1 prior to 
May 1, 1934, might enter into the agreement, v^hile . display of the Blue 
Eagle on or si-ter May 1, 1934, oy eai'lier signers would evidence their "^ 
continued compliance with the TIA. All substitutions and exemptions pp- 
proved cud exceptions granted "before May 1st were to continue appliccbla* 

B. Territorial Agreements 

Originally, it was the plan to bring industries in territories end 
insular possessions under the same code applicable to continental United 
States rc.ther than write separate codes.' 

An uniTOnibered Office l.Iemoranduia of December 1, 1933, set forth the 
fact that codes covered territories and insular possessions unless specific- 
cally excepted there frojn; therefore, unless some impelling reason for 
exception existed, codes were hot to be limited in their general geogra- 
phical application, 

Txecutive Order 5750-A of J-one ?,7, 1934, delega.ted to the Administra- 
tor the porer to enter into agreemen-os, pursuant to Section 4(a) of the 
Act, with persons engaged in a trade or industry in Puerto Rico, and the 
Territories of Hav/aii or Ale,ska, if in his' judgment such agreements would 
aid in effectuating the policy of the Act with r espoct to transactions in 
or affecting intersta^te or foreign coimnerce and would not promote mono- 
polies or tend to eliminate or oppress small enterprises. 

Administrative Order X-60 of July 2, 1934, provided that trades and 
industries in the Territories of Puerto Rico aaid Hawaii were to be exempt 
from codes theretofore approved until September 1, 1934, and from codes 
thereafter approved for a period of six vroeks following the dates of siich 
approvals. If the Deputy Administr.ator for the Territory so ordered for 
a trad.e or industry, the exemption wa^s to remain in effect only as to 
those Avho entered into and complied with sn agreement under Executive 
Order 6750-A, so long as such agreement remained in effect. This order 
did not affect any exception or exemption of a specified trade or industry, 
or subdivision thereof, or of a specified person or persons, theretofore 
or thereafter gra^nted, nor any code or modification of a code for a trade 
or industry'- in Hawaii or Puerto Rico. At any time before the expiration 
of a general exemption under this order any truly representative trade or 
industrial association or group which imposed no ineqxi table restric- 
tions on admission to membership therein might apply for modification of 
a code or for the approval of a separate code for the tra.de or industry 
in the territory. Any person directly affected who claimed that appli- 
cation of a code would be unjust to him" and applied for an exemption v/as 
to be given opportunity for a heaa*ing and determination of the issues rais-- 
ed prior to incurring any liability to enforcement of t he code and the 
Deputy Administrator for such territory was, if justice required, to stay 
the application of the code in the territory for all similarly affected 
pending determination of the issues involved. 

Adrainistrative Order X-80, dated August 27, 1934, approved the form 
of Adi.iinistra.tor ' s Territorial Cooperation Agreement attached thereto as 
Exhibit A,* 

* See Ap-oendix VIII 



-36- 

Office Memorand-um 348, dated March 19, 1835, authorized the' Deputy 
Administrator for the Territory of Hawaii to exercise all of the powers 
delegated to or vested in the National Industrial Recovery Board "by 
virtue of any code theretofore or thereafter approved exclusively for 
the territory, except the power to approve amendments to, or codes sup- 
plementary to such code. The Deputy for Hawaii was also authorized to 
grant exemptions from, to stay provisions of, or to make interpretations 
of, codes approved exclusively for the territory. However, all action 
taken hy the Deputy for Hawa,ii was to he in conformity with the rules and 
regulations and policy estahlished Dy the inyi and was to. he promptly 
reported to, and subject to review and disapproval "by, the National 
Industrial Recovery Board. 

Office Memorandum 356 of May 3, 1935, authorized the Deputy Adminis- 
trator for the Territory of Alaska, subject to general supervision and 
review hy the National Industrial Recovery Board, to exempt or refuse to 
exempt any member or members of a trade or industry on application from 
any provision of any code to the extent that such code applied to any 
transaction within the territory. Such authorization, however, did not 
apply to exemptions from any provisions of the codes for the Canning, 
Canned Salmon, Lumber and Timber Products, and Fishery Industries. 

C . Service Trades Agreement s 

Executive Order 6723 of May 26, 1934, in part provided that in any 
loca,lity in which 85}b of the members of any service trade or industry, 
the provisions of v/hose code had been suspended, (*) proposed to agree 
with the President to abide, by any local code of fair trade practices 
suggested by them for that locality, which schedule had been approved by 
the Administrator,, the Administrator was authorized to make such agree- 
ment. Thereafter, no member of such industry in such locality was en- 
titled to display appropriate NHA insignia unless he was complying witli 
all terms of such agreement in addition to the non-suspended provisions 
of the code . 

By Executive Order 6756-A of June 28, 1934, the President offered 
to enter into an agreement with the members of such service trades not 
theretofore codified, whereunder any member displaying appropriate NBA 
insignia evidenced his agreement to comply with the standards of labor 
approved by the Administrator, on the condition, however, that in any 
locality in which 85^^ of the members of any such trade had proposed a 
local code of fair trade practices, and such code having been approved 
by the Administrator, no member was entitled to display NRA insignia 
unless he was complying with all' terms of such local code in addition to 
the said standards of labor. 



(*) , By Administrative Order X-37 of May 26, 1934, provisions 
of codes for the following were suspended: 

Motor Vehicle Storage and Parking, Bowling and Billiard, 
Barber Shop, Cleaning and Dyeing, Shoe Rebuilding,. 
Advertising Display Installation- and Advertising Distributing 
Trades; Administrative Order X-50 of June 13 and Administrative 
Order X-54 of June 28, 1934, respectively included the Laundry 
Trade and the Hotel Industry among those whose codes were sus- 
pended. 
9575 



-37- 

Administrative Order X~53 of June 28, 1934, in part provided that 
local code committees for service trades, upon application to the 
Administrator, might be authorized to cooperrite with NRA in coordina- 
tion and execution of the service trades program. Schedules of fair 
trade practices, wherever suita.ble to the needs of the locality, were 
to conform to the practices originally contained in the designated 
codes, proviaed, however, that practices, including those relating to 
minimum price, were to be apioroved only in accord^-'jice with existing KRA 
policy on such matters, 

D . Voluntary Agreements since June 15, 1935 

After the apioroval of Public Resolution 26 of the 74th Congress 
on June 14, 1935, which left to the President authority under the Act 
only to enter into voluntary agreements with members of trade or in- 
dustry, several Executive Orders \7er0 issued concerning such agreements. 
The function of the Division of Business Coopera.tion, established by 
Executive Order 7075, (June 15, 19o5) was "to aid in the voluntary 
maintenaaice by trpde axid industrial grouos of standards of fair competi- 
tion, in the elimination of unfair competition in the . employment of 
labor or in trade practices.'' By Executive Order 7192 of September 25, 
1935, the Presicent delegated to the Federal Trade Commission- all 
authority vested in him to apr)rove provisions, in the '.7ords of Public 
Resolution 26, "prohibiting unfair competitive practices which offend 
against enlisting lav;, including the anti-trust lav/s, or v.'hich constitute 
unfair methods of competition under the i'ederal ??rade Conmission Act, 
as amended." Executive Order 7193, issued the same day, delegated to 
the Coordinator for Inoustrial Cooperation the d^.ty of receiving from 
the Federal Trade Commi.-ision "after consideration by the National Recovery 
Administration of the provisions Droposed under Section 4(a) of the 
National Industrial Recovery Act as require the aporoval of the Presi- 
dent ..,. and to present the same to the President for his considera- 
tion." (*) 



(*) Executive Orders 7192 and 7193 were clajriiied by an Executive 
Statement issued September 30, 1935. See Ap-Dendix IX, 



9675 



' CHAPTER' XI 

LICEHSING ■■ 
Section 4 ("b) 



Section 4(13) of the Act, providing for the licensing of any trade 
or industrj'- or subdivision thereof in order to make effective a code of 
fair competition or an at^reement, was to expire one year, after the date 
of enactment or sooner if the President "by proclamation or the Congress 
Id;'" joint resolution declared that the emergency had ended. V/henever the 
President found that destructive wage ur price cutting or other activi- 
ties contrary to the policy of the ■ Act were "being practiced in eJ^ir trade 
or industry, and, after necessary puhlic notice and hearing, found it 
essential to license "business enterprises in order to malce a code effec- 
tive, and so announced pu"blicly, no person v/as, after a date fixed in 
stich announcement, to engage in or carry on any "business, in or affecting 
interstate or foreign conferee, unless he had first o"btained a license 
issued pursuant to the President's regulations. Such licenses might "be 
suspended or revoked, after due notice and opportunity for hearing, for 
violations, of the terms or conditions thereof. Any order of the Presi- 
dent suspending or revoking any such license v/as to "be final "if in 
accordance 'with law." Any person v/ho, without such a license or in 
violation of any condition thereof, carried on any such "business for 
which a license was so required was, upon conviction thereof, to "be fined 
not more than $500, or imprisoned not more than six months, or "both, and 
each day such violation continued was to "be deemed a separate offense. 

Ho Executive Orders were issued concerning the power to license 
trades and industries, nor indeed was the pov/er ever exercised. , , 



375 



-39- 

CliAPi'E'a XI : 

EXSJIPTION FROM Ami-TBJJS'H LAVfS 

Secoioii 5 



The first para-^raph of o''^ctj.orx 5 of tLa Act provided that •.vhile 
Title I rras in effect (or in the case of a licen^je, while :;ection 4(a) 
uas in effect) and. for 60 days thereafter, an^'' code, agreement, or 
license approved, prescribed, or issued and in eff'^ct iinler that title, 
and ajiy action complyinf^ Y/ith the -orovisiors thereof vv.'^.s to he oxeropt 
from the provisions of the anti-trust lav/s of the ijnit^-'d Sta^'es. 

This is another section '^.f the Act under which no Executive or 
other orders were issued. 



!675 



-4-0- 
CHAPTER XIII 
KiAlIUAL LABOR 
Section 5 



The second "oaragraph of Section 5 provided that nothing in the 
Act, and no regulation thereunder, nas to prevent an individual from 
pursuing the vocation of manual lahor and selling or trading the products 
thereof; nor was anything in the Act, or regulation thereunder, to prevent 
anyone from marketing or trading the produce of his farm. 

Likewise, no Executive or other orders were issued under authority 
of this section of the Act. 



9675 



-41-- 
CHAPTSa XIV 
LIUITATIONS UPON APPLICATION OF TIIE ACT 
Sections 6(a) and ("b ) 



Section 5(a) of the Act -orovided that "no trade or industrial 
association or gro-up shall "be eligilDle to receive the benefit of the 
provisions of this Title until it files with the President a statement 
containing such information relating to the activities of the association 
or group as the President shall loy regulation prescribe." 

Section 6(13) authorized the President to prescribe rules and 
regulations designed to insiire that any organization availing itself of 
the "benefits of the Act were truljr representative of the trade or industry 
or subdivisions thereof, represented by such organization and any organiza- 
tion which viola.ted any such rule or regulation v/as to cease to be en^- 
titled to benefits under the Act. 

No Executive or other orders were issued specifically under the 
authority'- of Sections 6(a) and (b). However, Executive Orders 6173 and 
eSCS-A, of June 16, and July 15, 1953, respectively, delegated to the 
A(?x.iinistrator the po?/er "to conduct such hearings and to exercise such 
other functions" as were vested in the President, except the approval of 
codes, agreements, etc. Under this general authority the Administrator 
had prepared application blanks (*) for the presentation of codes, which 
blanks, .xaong other things, called for statistical data on the representa- 
tive character of the trade association making application for a code. 



(*) See Appendix X. 



9575 



-42" 
,CHAPTEH XV 
PEDE51L TRADE COMI-HSSION IIWESTIGATIONS 
Section 6(c ) 



Section 6(c) of the Act provided that, tipon the request of the 
President, the Federal Trade Commission was to nal^e such investigations 
as uere necessary to enable the President to carry out the provisions of 
the Act, and for such purposes the Commission was to have all powers 
vested in it with respect of investigations under the Pederal Trade Com- 
mission Act, as amended. 

Executive Order 6569, of Janustry 20, 1934, prescribed that whenever 
anj'' coEiplainaJit was dissatisfied with the disposition by any Federal 
agency, except the Depaitment of Justice, of 8j)y coinplaint charging that 
any person, partnership, corporation, was engaged in any monopolistic 
practice, or practice permitting or promoting a monopoly, or tending to 
eliminate, oppress or discriminate against small enterprises, which was 
allegedly in violation of the provisions of any code, or allegedly 
sanctioned by the provisions of such code but allegedly in violation of 
Section o(a), such complaint was to be transferred to the Federal Trade 
Commission by such agency upon request. of the coniplainant. Upon receipt 
of any such complaint the Federal Trade Commission might institute pro- 
ceedings against such persons, pa^rtner ships, corporations, as it might 
have reason to. believe were engaged in. the aforesaid practices, whenever 
such proceedings v/ould be to the interest of the public. However, if in 
any case the Federal Trade Commission determined that any such practice 
was not contrary to the Drovisions of the Federal 1'rade Commission or 
Clayton Acts, instead of instituting such proceeding, it was to transfer 
the complaint, with the evidence and other information. pertaining to the 
matter, to the Department of Justice. The power conferred -upon the 
Federal Trade Commission by this Executive Order was not to be construed 
as being in derogation of any of the powers of said Commission under 
exist in.?: law. 



9575 



-45- 

CHAPTEH XVI 
EEqUIESMENTS COITCERITING LABOR • .. 
Sect ion 7(a ) 

Section 7(a) of the Act, ind'oded in all codes as required ty the 
provision of the Section per se , and partially administered as to com- 
pliance "by the National Lator Board and suhsequently "by the National 
Labor Relations Board, follows: 

"Every code of fair competition, agreement, and license approved, 
prescribed, or issued under this title shall contain the follovr- 
ing conditions: (l) That employees shall have the right to 
organize and "bargain collectively thro-ugh representatives of 
their own choosing, and shall be free- from the interference, ro*. 
straint, or coercion of employers of lahor, or their agents, in 
the designation of such represento'.tives or in self-organization 
or in other concerted activities for the purpose of collective 
"bargaining or other mutual aid or protection; (2) that no 
employee and no one seeking employment shall he required as a 
condition of employ-Dent to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of 
his ovj-n. choosing; and (3) that employers shall comply with the 
maximum hours of la"bcr, minimum rates of pay, and other condi- 
tions of emplo;,Tnent, approved or prescribed by the president." 

National labor and National Labor Relations Boards 

The creation of the National Labor Board was announced by Press 
Release 195 of August 5, 1933, which Board was continued by Executive 
Order 6511 of December 16, 1933, to settle by mediation, conciliation or 
arbitration all controversies between employers and employees which tend- 
ed to impede the purposes of the National Industrial Recovery Act, 
provided, however, that the Beard might decline to take cognizp^nce of 
controversies between employers and employees in any trade or industry 
where a means of settlement, provided for by agreement, industrial code, 
or Federal law, had not been invoked. The Board v/as empowered (l) to 
establish local or regional boards, upon which employers and employees 
were to be equally represented, and to delegate thereto such powers and 
territorial jurisdiction as it deemed necessary; (2) to review determina- 
tions of local or regional boards where public interest so required; and 
(3) to make rules and regulations governing its procedure. 

Executive Order 658'^, dated Febraary 1, 1934, provided that when- 
ever a substantial ntmiber of employees in any plant or enterprise 
requested the National Lab<^r Board to conduct an election to enable them 
to choosp representatives for the purpose of collective bargaining, the 
Board was to make arrangements for and supervise the conduct of an 
election under rules and regulations prescribed by itself. If after 
employees' representatives had been duly elected, the Board determined 
that an employer declined to recognize or deal with. said representatives, 
or T/as in any other way refusing to comply with the reauirements of 

9675 



-.44— 

Section 7(a), the Board was to report its determination promptly to 
the Administrator for Industrial Recovery for appropriate action. 

Executive Order 6612-A of Feliruary 23, 1934 modified Executive 
Order 6580 "by including an. employer's interference with the National LalDor 
Board's conduct of an election among violations of Section 7(a). Findings 
of violation, together with appropriate recommendations, were to 'be re- 
ported to the Attorney General or to the Compliance Division of NHA, 
instead of to the Administrator - as provided "by tKe previous order. 
The Compliance Division was not to revie'j the Board's findings "but it had 
the power to take appropriate action "based thereon. 

Executive Order 6763 of June 29, 1934, created the National Lahor 
Relations Board in connection with the Department of Later under authority 
of Puhlic Resolution 44 of the 75rd Congress and provided that the Nation- 
al Lahor Board was to cease to exist on July 9, 1934. The new Board was 
authorized to investigate issues, facts, practices and activities of 
employers or employees in any controversies arising under Section 7(a) 
of the Act; to order and conduct elections; to hold hearings and make 
findings of fact regarding complaints of discrimination- against or dis- 
charge of employees or other alleged violations of Section 7(a) vyhenever 
it MB.s in the puhlic interest; and to act as a "board of ' voluntary arbi- 
tration upon the request of parties to a lahor dispute. 

Executive Order .7074 of June 15, 1935, continued the existence 
of the National LaDor Relations Board until July 1, 1935; Executive Order 
7090 of June 29, 193&, continued the Board until August 1, 1935; Executive 
Order 7121 of July 31, 1935, continued the Board until Septem"ber 1, 1935; 
and Public No. 198 of the 74th Congress created a National La"bor Relations 
Board end provided that upon e^ppointment of its mem"bers the old Board was 
to cease to exist. . ' 

Autom.o"bile Labor Board 

Administrative Order X"ll of March 26, 1934 esta"blished a "board of 
three for the automotive industry, composed of one la"bor, one industry 
and one neutral representative, and governed by the following "principles 
of Settlement". 

1. The employers agreed to bargain collectively with the 
freely chosen representatives of groups and not to discriminate 
in any way against any employee on the ground of his union labor 
affiliations. 

2. If there were more than one group each bargaining committee 
was to have total membership pro rata to the number of men each 
member represented. 

3. The Board was to have access to all payrolls and to all 
lists of claimed employee representation and in cases where no 
lists of employees claiming to be represented had been disclosed 
to the employer, there was no basis for claim of discrimination. 

4. The Government made it clear th^t it favored no particular 
union or particular form of employee organization or representa- 
tion, but that its only duty was to secure absolute and uninflu- 
enced freedom of choice without coercion, restraint, or 
intimidation from any source. 

9 675 



-45- 

5. The Industry understood that in reduction or increases of 
force, such human relationships as married men with feunilies 
shall come first and then seniority, individual skill and ef- 
ficient service. 

Administrative Order X-SG of April 27, 1934, extended the jurisdic- 
tion of the Boa,rd to pass upon questions of representation, discharge and 
discrimination arising within the Automotive Parts and Equipment Llanufac- 
turing Industry as might he submitted "by parties thereto. 

National Steel Lahor Relations Board 

The National Steel Later Relations Board was established under 
authority of Puhlic Resolution 44 of the 73rd Congress hy Executive Order 
6751 of June 28, 1934. In connection with lahor prohlems relating to the 
iron and steel industry, it was authorized to investigate, hear and 
determine any charges of interference, restraint or. coercion of employees 
in the exercise of their rights as defined, in Section 7(a) of the Act or 
Article IV of the Code for the Iron and Steel Industry; to hold elections 
and to have access to such payrolls and other documents as would enahle 
the Board to prepare and certify lists of employees eligible. to vote in 
elections; and to serve as a hoard of voluntary arhit ration or create 
hoards of voluntary arhitration. 

Executive Order 7085 of June 24, 1935, continued the Steel Lahor 
Board until July i, 1935, while Executive Order 7091 of June 29, 1935, 
continued the Board "until further order." 

Textile Boards 

The Cotton Textile National Industrial Relations Board was created 
"by Section XVII v/hich was added to the Code for the Cotton Textile 
Industry August 8, 1933 and amended July 10, 1934. The Textile National 
Industrial Relations Board, composed of five members — one each to he 
nominated hy the Code Authorities for the Wool Textile and the Silk 
Textile Industries to represent the employers of those industries; two 
to he nominated hy the NRA Lahor Advisory Board, one each to represent 
the employees of those industries; and a fifth to he selected hy the 
Administrator — was established hy Administrative Orders 3-20 and 48-8 
of June 28, 1934, to conciliate and arbitrate lahor controversies in 
those industries. 

Executive Order 6340 of September 5, 1934, created in connection 
with the Department of Labor under authority'" of Public Resolution 44 of 
the 73rd Congress the Board of Inauiry for the Cotton Textile Industry 
to inquire into the general character and extent of the complaints of 
the workers and the problems confronting the employers in the cotton 
textile, wool, rayon, silk and allied industries, and to consider ways 
and means of meeting said problems and complaints. 

Executive Order 6858 of September 26, 1934 created the Textile 
Labor Relations Board, composed of three Special Commissioners appointed 
by the President, under authority of Public Resolution 44 of the 73rd 
Congress in connection v;ith the Department of Labor. The Board was 
authorized to investigate, hold hearings and make findings of fact a.s to 

9675 



►.46- 

any alleged violation of Section 7(a) of the Act, and to refer such 
findings to proper governmental agencies for appropriate action; and with 
respect to codes for the cotton textile, silk textile and wool textile 
industries, to investigate, hold hearings and make findings of fact as to 
any alleged violations of said codes v;ith respect to hours of work, rates 
of pay or other conditions of employment and to refer such findings to 
the proper agencies for appropriate action. Appeals on questions of law 
in cases involving Section 7(a) of the Act or rarts of codes might "be 
talcen from the Textile Lahor Relations Board to the National Labor Rela- 
tions Board in cases in which (l) the Textile Labor Relations Board 
recommended review, (2) difference of o;oinion existed in the Board, or 
(3) the National Labor Relations Board deemed review would serve public 
interest. This Executive Order also abolished the Cotton Textile 
National Industrial Relations Board, the Textile National Industrial 
Relations Board 8.nd the Board of Inquiry for the Cotton Textile Industry, 
above referred to. 

Executive Order 7084 o^*^ June 24, 1935, continued the Textile Labor 
Relations Board until July 1, 1935, vrtiile Executive Order 7089 of June 
29, 1935, continued the Board "until further order." 



i675 



-47- 

CHilPTEE JCVII . 
LABOR AGHEEJffilJTS 
Section 7(b ) 

Section 7("b) of the Act provided that the TrQ^sident 
v/as, so fcr as practicable, to afi'ord every opportunity to em- 
plovers and employees in aiiy trade or industry or subdivision thereof- 
to establish by mutual agreement the standards as to the maximum 
hours of labor, ' minimum rates of pay» and such other conditions of 
employment ' as' might be necessary in such trade or industry or sub- 
division thereof to effectuate the policy of the Act; and the stan- 
dards established in such agreements, when approved by the President, 
v;ere to have the sajne effect as a code approved by the President 
under Section 3(a). 

!Eiere v/ere no general Executive or Administrative Orders 
issued under authority of Section 7(b) . Labor Agreements were 
entered into by the employers and em.ployees of onl;- tv/o industries - 
— the Construction ancl the Bituminous Coal Industries. 



9675 



-43- 
CHAPTER XVIII 
LB/IITED LkBOR CODES 
Section 7(c) 

Section 7(c) of the Act provided that where no mutual agreement had 
"been approved by the President he might investigate the labor practices, 
policies, 'vrages, hours of labor, and conditions of employment in any trade 
or industry or subdivision thereof; and upon the basis of such investiga- 
tions, and after such hearings as the President found advisable, he was 
authorized to prescribe a limited code of fair competition fixing such 
maximum hours of labor, minimum rates of pay, and other conditions of em- 
ployment in the trade or industry' or subdivision thereof investigated as 
he found necessary?' to effectuate the policy of the Act, which was to have 
the same effect as a code approved by the President under Section 3(a). 
The President might differentiate according to experience and skill of 
the employees affected and according to the locality of emplojrment; but 
no attempt was to be made to introduce any classification according to 
the nature of the work involved which might tend to set a maximum as well 
as a minimum wage. 

No limited labor codes were prescribed, nor were any general orders 
issued under the authority of Section 7(c) . 



9675 



-49- 

CHAPT3H XIX 

APPLICATION OF AGHI CULTURAL ADJUSTl^SNT ACT 

Section 8 

Section 8 provided that Title I of the National Industrial Recovery 
Recovery Act was net to "be construed to repeal or modify any of the pro- 
visions of Title I of the At:;ri cultural Adjustment Act. In order to avoid 
conflicts in the administration of the Agricultural Adjustment Act and 
the National Industrial Recovery Act, the President was permitted to de- 
legate any of his functions and powers under the National Industrial Re- 
covery Act with respect to trades, industries or suhdivisions thereof 
which were engaged in the h ndlinj of any agricultural commodity or pro- 
duct thereof, or of any competing commodity or product thereof, to the 
Secretary of Agriculture. 

The President on June 26, 1933, hy Executive Order 6182 delegated 
to the Secretar;;" of Agriculture "all functions and powers (other than 
the determination and administration of provisions relating to hours of 

lahor, rates of pay, and other conditions of employment) with 

respect to trades, industries, or suMivisions thereof engaged princi- 
pally in the handling of milk nnd its products, tohacco and its products, 
and all foods and foodstuffs "but reserving the pov/er to ap- 
prove or disapprove of the provisions of any code" to the President, 

Executive Order 6207 of July 21, 1953, simply reaffirmed the dele- 
gation set forth in Executive Order 6182, notwithstanding Executive 
Order 6205-A of oulj 15, 1935, v/hich provided that the Administrator was 
to exercise the functions vested in the President hy the Act» 

The jurisdiction of the Secretary of Agxiculture was widened "by 
Executive Order 6345 of October 20, 1933, to include "up to the point 
of first processing off the farm" agricultural commodities — livestocl:, 
poultry, fur-hepring ajiim.als and bees, flowers, nuts, fruits — human and 
animal food, nonfood products of grains, inedible animal and vegetable 
oils end. fats, crushing of cottonseed or flaxseed, etc. If question 
arose as to jurisdiction over any specific trade or industry, it was to 
be "finally and conclusively determined by agreement between the Secre- 
tary of Agriculture and the Administrator" or, if they did not agree, 
then the question was to be submitted to the President, whose decision 
thereon was to be final and conclusive. 

Executive Order 6551 of January S, 1934, set forth lists of trades 
and industries, the jurisdiction over some of v^iich was thereby trans- 
ferred to the Administrator from the Secretary of Agriculture, while 
others remained under the Secretary's jurisdiction. However, any func- 
tions raid pov/er s could "by v/ritten agreement between the Secretary of 

Agriculoui'e and the Administrator be redelegated to the Secretary 

or be delegated to the Administrator as the case may be." In order that 
certain matters could be dealt with under provisions of the Agricultural 
Adjustment Act without conflicting with the exercise of powers under the 
National Industrial Recovery Act, the Administrator's powers were limited 
even as to trades and industries within his jurisdiction. Tlie Adminis- 
trator was not, without the written approval of the Secretary of Agri- 
culture, to exercise his functions and powers through the fixation or 
9675 



control of prices, brokerage fees, comiTiission rates and marketing quotas 
in connection with the p-oi^chr-se of c.;^ricult-aral cor;i::iodities from pro- 
ducers and the subsequent sale or disposition by first processors of the 
first processed crticlcs; crt)clits and financial char/;es v/ith reference 
to pgTicultural products; purchasing arrangeinents mth regard to agri- 
cultural cornj^iodities in their original form; plmt capacity and/or its 
allocation. 

Joint approval "by the Secretary of Agriculture and the Administra- 
tor of codes of fair competition for those industries with respect to 
which "both the Secretary of Agriculture and the Administrator might 
exercise frictions and powers was prescribed by Executive Order 6764 of 
June 29, 1934. Codes for trades or industries having more than 50,000 
employees and Section ?(d) codes were excepted from this joint approval, 
but the approval of amendments, exemptions, etc., v/as to be by the 
Secret rxy of Agriculture for code provisions he v/as authorized to ad- 
minister rnd by the Administrator for those over v;hich he had jurisdic- 
tion. 

Executive Order^ -6999 of March 30 » 1935, transferred five agricul- 
tural codes from the jurisdiction of the Secretary of Agriculture to 
that of the National Industrial Recovery Eoard with the same provisos 
as in Executive Order 6551 that prices, brokerage fees, marketing quotas, 
plant capacity, etc. v/ere not to be fixed or controlled by the Board 
without the v/ritten approval of the Secretary of j\griculture. 

Tiie problem of cooperatives, though not exclusively agricultural, 
is generally associated with farm problems, hence the various Executive 
and Administrative Orders concerning cooperatives vdll be dealt with in 
this portion of this Study. By Executive Order 6355 of October 23, 

1933, the President ordered that no provision in any code of fair com.- 
petition, agreement or license, which had theretofore been or might 
thereafter be approved, was to' be so cons^crued or applied as to prohibit 
the pa;;ment- of patronage dividends in acccrdance with lav; to any member 
by any bona fide and legitimate, cooperative organi2:ation, including any 
farmers* cooperative, if such patronage dividends v/ere paid out of 
actual earnings of such cooperative organization :ind. were not paid at 

the tine when such member made a purchase from such cooperative organizar- 
tion. 

Executive Order 6606-A of February 17, 1934, prescribed that no 
provision in any code was to be construed or applied so. as to make it a 
vialation of any code to sell to or through any bona. fide and legitimate 
cooperative organization or to prevent any such cooperative organization 
from being entitled to receive, and/or distribute to its members as 
patronage dividends the proceeds from any discount or commission. The 
Administrator was authorized to determine whether, in any doubtful case, 
an organization was or was not a bona fide and legitimate cooperative 
orgaXLization. 

Following this order, Administrative Order X-35 was issued May 18, 

1934, defining farmers' and consumers' cooperatives. A bona fide rjid 
legitimate cooperative organization must ( l) be duly organized under the 
laws of any state, territory or the District of Columbia; (2) allow to 

9675 



-51- 

eacli momlDer ov/iiin;>; one fullj'- paid share one vote and only one, except 
that a res^-ional cooperative association may provide for votin,^ "based 
upon the vol-ume of business done "by its members; (3) operate on a c^^op- 
erative basis for the mutual benefit of its members, all income, after 
providing; for sirrplus and reserves, and -pajment of dividends on stock 
or membership capital of not to exceed 8^j per annum, cumulative, to be 
distributed to members or shareholders at stated jjeriods but not more 
freciiently than semi-annually; (4) transact business with. and for and 
on behalf of non-members for an ainount not greater in value durin^^^ any 
fiscal year than business trajisacted v/ith and for and on behalf of mem*- 
bers f.UL-ing the same period; (5) permit members and stockholders to have 
access to the records for purpose of determining salaries paid officers 
and employees, no salaries or commissions to be paid except for services 
rendered; (5) distribute patronage dividends eciUcilly to all members 
and/or stocliiolders, who have complied v^^ith membership requirements, in 
proportion to their purchases and/or sales, but not in the form of a re- 
fund at time of purchase, and not evidence such dividends by any agree- 
ment to distribute any specified dividend; and operate in accordance 
with applicable codes and Executive Orders 6353 and 6606~A. 

Administrr.tive Order X-98 v/as issued. October 12, 1954, interpret- 
ing Executive Order 66O0-A in so far as it applied to the allowance of 
brokerage commissions to cooperative org£mizations. This order pres- 
cribed that no provisions of any code theretofore or thereafter ap- 
proved v/ere to be so construed or applied as to malie it a violation of 
any such code for ajny member of any industry to pay or allow a broker- 
age coOTTiisslon to any bon,-; fide and legitimate cooperative organization 
perform.ing services or engaged in functions for which other persons 
might properly be paid such a commission. In determining whether a 
cooperative organisation was performing such services and functions no 
cogni::^ance T;as to be taken of the fact that said cooperative organisa- 
tion would distribute its actual earnings, whether acquired in the form 
of brokerage commissions, or otherv/ise, to its members in the form of 
patronage dividends, notv;ithstanding also the fact that the members vrho 
in due course might receive a part of sa.id brokerage commission as a 
patronage divid.end m.ight be the purchasers of the product or service in 
connection with which the said commission was rejilized. 



9675 



-52- 

CliAPTEH XX 

OIL P^GULATION 

Section 9 

Tlie President was authorized iinder Section 9 (a) to initir.te "be-* 
fore the Int^rstato Commerce Commission proceedinf-^s necessary to pres- 
crioe reo^'ul rations to control the operations of oil pipe lines and to 
fix reasonable, compensatory rates for the transportation of petrolevim 
and its products by pipe lines, and the Interstate Commerce Commission 
was to {;,Trait preference to the hearin^-s and determination of such cases; 
under Section 9 (b) , to institute proceedings to divorce from my hold- 
ing co:npa:iy any pipe-line company controlled by such holding company 
which pipe-line company ''oi^ unfair practices or by exorbitant rates in 
the transportation of petroleum or its prodr.ct3 tended to create a 
monopoly; under Section 9 ( c) , to prohibit the transportation in inter- 
state and foreign commerce of petroleum arnd its products produced or 
v;ithdraTm from storage in excess of the amount permitted to be produced 
or \;ithdravm from storage by aiiy state law or valid regulation or order 
prescribed thereunder, by any board, commission, officer, or other duly 
authorized agency of a State. Any violation of any order of the Presi- 
dent issued under these provisions was to be punishable by fine of not 
to exceed $1,000, or imprisonment for not to exceed, six months, or both, 

Tlie Petroleum Code, negotiations for which were carried on by ITPA, 
was appro-ved August 19 and was modified in several particulars on Sept«* 
ember 13, 1933. I^xecutive Order 626n-A of August 29, 1933, designated 
the Secretary of Interior as the Administrator and the Department of 
the Interior as the Pederal agency provided by the code to exercise on 
the President's behalf all the functions and powers vested in him by 
the Act rnd the Code. 

Tlie Executive Orders issued under the authority of Section 9 had 
no direct bearing on KRA activities and are therefore not set out in 
this study. 



9675 



CHAPTER XXI 

HULSS XSD RSCrULATIONS 

Section 10(a) 

Section 10(a) of the Act authorized the President to 
prescrioe such rules and re^yulations as v;ere necessary to carry 
out the purposes of Title I of the National Industrial Recovery 
Act, aiid fees for licenses rnd for filing- codes of fair compe~ 
tition and agreements, (*') and any violation of any such rule or 
regulation v/as to he punishahle "by fine of not to exceed $500 or 
imprisonment for not to exceed 6 months, or "both* 

The rules and re^/alations issued hy the President under 
authority of this Section and "by the Administrator under authority 
delega.ted to him "by the President pertained to various suhject 
matters; hence, the substantive contents of orders prescrihing rules 
and regulations are set forth in the chapters of this study dealing 
v;ith their subject matter. 



(*) ITo fees for licenses and for filing codes of fair competition 
and agreements were ever -nrescribed or imposed. 

9675 



-54- 
CYUiBTZ?. XXII 

AJ.'IEiIDh.E:]TS 
Sect ion 10(o) 

Section 10(b) oi the Act provided that the Presi- 
dent ;.ii;;,'ht "from time to time cancel or ..lodifj; an-"- order, arv* 
provr.l, license, rule, or retaliation issued vaidor this title;" 
and each a-reement or code apr.roved was to contain pn express 
provisicii to th.nt eiiect. 

As has heen noted elsev/here in t^iis study, certain 
Sxec"o.tive Crd?rs can be considered as issued under the authority 
of Section 10(b) but they have "oee-n included in chapters deal- 
in^^ with their subject matter. 



9675 



-55- 

^CKAPTSR XXIII 

INSIGNIA 

Kiere v;as no specific provision in the Act for the use of insi^^nia 
"but ln.te in July, 193o, the Blue Eagle v/r.s o.evised as an emblern to 
signif'y compliance' vdth the PHA. Tlie first order relating to insignia 
was E::ocutive Order 5337, issued October 14, 1933, which provided in 
part that no one v/as to display or use any emlilem or insignia or any 
repro '.uction of any emblem or insignia of the National Recovery Adminis«- 
tration contrary to any rules or regulations prescribed thereunder by 
the Aoj.iini s tr at or • 

Ac'ministrativG Oxder X~3, January 17, 1904, dealt with issuance 
of labels beajringlTHA insignia and provided that where the code author-^ 
ity hac. the exclusive right to issue labels, it was not to refuse to do 
so on the ground of non-compliance unless it was prepared to certify to 
NRA a prima facie case of non-compli-:ince vath the code or the miles and 
regulations of the code authority. In the event of such rvjfusal the 
code authority was to certify to NRA for decision by the National Com- 
pliance Director a com.plete file, showing the alleged non-compliance 
by the applicant not later- than the day followin,^: such refusal. All 
other refusals v;ere immediately to be certified showing the grounds 
therefor to NRA. 

An unnumbered Office Mem.orandum of March 3, 1934, authorized code 
aathoi-ities to use the Blue Eagle on their stationery if the hours aJid 
v;a;;es of their employees were \;ithin the reouirements of their code for 
like workers. 

Ac":Tiinistrative Order X-19 of April 12, 1954, created a Code Blue 
Eagle as property of the United States Oovernment and provided that no 
person wa.s to display, and on finding by NRA any person might be public- 
ly deprived of the right to display, any Blue Eagle if he violated any 
provisions or the spirit and intent of any code. Presidential agreement, 
or regu-lation, duly prescribed and approved. 

Acjninistrative Order X-22 of April 19, 1934, reiterated the pro- 
visions of X-19 without Change. 

Acministrative Order X-36, dated May 26, 1934, in part provided 
tha.t no member of a tra'.e or industry v/as to be deprived of the right 
to display the Blue Erxgle because of non-pa.yraent of his equitable contri- 
bution. to code administration expenses unless such member had been given 
notice of contribution due and had failed to pay amount due within thirty 
days of receipt of notice or had ngt filed a protest against the contri- 
bution within fifteen days of receipt, of notice. 

Aciiiinistrative Order X-38 of May 23, 1934, provided, r-unong other 
things, that the exclusive power to issue labels was vested in the code 
authority- for ea.ch of the industries — v/hose codes either theretofore 
or thereafter approved — contained maaidatory label provisions. All 
contracts for the purchase of labels by said code authorities were to be 
m^ade after competitive bidding and no person or firm other than those 
specifically authori7.ed were to manufacture or deal in labels bearing the 

9675 



•56- 



NHA emblem or insignia or any labels whose form, contents or insignia 
are so similar thereto as to be deceptive. The pov/er to vdthdraw or 
v/itiihold labels v/as reserved to the Administrator or to such agencies 
as he miifjht de'si^ate, but code euthorities raij~'ht issue, subject to 
disapproval by the Administrator, such rules, re;Aulations or forms, or 
modifications thereof, as v/ere nocessary in the administration of the 
lab'el provisions of their respective codes and which were not incon- 
sistent therewith or with any general re;^lations issued concerning 
labels. Upon application to the code authority labels were to be issued 
to all members of the industry subject to the code who had signed a 
statement certifying that they were complying with. all provisions of 
their codes and of the Act ?nd with all rules and regulations duly 
adopted pursuant thereto :ind that they v;ould use labels issued to them 
only GO long as they continued in compliance. No one was falsely to 
represent himself as complying, and v;henever the code authority had 
cause tc "believe rJiy ^^^ subject to the code was in violation thereof, 
it was to give due notice of the charge and an adequate opportunity to 
be heard. If after such hearing there was sufficient evidence of vio- 
lation in the judgment of the code authority it might suspend the 
issuance of labels to such person or firm. The code authority v;as im- 
mediately to file a summary of the record of the hearing with such 
recomr.iendations as it might deem proper with the NHA Compliance Divi- 
sion, which division had the pov;er, upon the record or after further 
hearing, to withhold the issuance of labels, to v/ithdraw the right to 
use labels or tc tal-e such other appropriate action as it might deem 
necessary. 

The charge fer Inbels by the respective code authorities was at 
all times to be subject to the supervision and orders of the Adminis- 
trator and v;as not to be more than an amount necessary to cover the 
actual reasonable cost thereof, including actual printing, distribu- 
tion and administration and supervision of the use thereof.. 

Office Memorandum 229 of June 9, 1954, provided in part that no 
limitation such as assent to the code .was to be imposed upon the right 
of employers operating in conformity with the provisions of approved 
codes to receive and displpy Slue Eagle insignia and that thenceforth 
administrative approval would not bo given to any code provision or any 
code authority by-law or regulation which sought to impose such a con- 
dition* 

Executive Order 6723 of May 2S, 1954, suspended all provisions in 
codes of such service trades or industries as thereafter were designat- 
ed ''oy the Administrator, except provisions governing child labor, maxi- 
mum hours of vrark, minimum rates of pay and the mandatory provisions 
of Sections 7(a) and 10 (b) of the Act, and provided that any member of 
such trade or industry was entitled to display NRA insignia so long as 
he was complying with the non-suspended provisions of such codes; pro— 
vided^ however, that after the adoption of a local. code of fair trade 
practices by 35 per cent of the members of such trade in any given 
locality, any member displaying insignia was also tc be complying with 
all tenns of such code. 



9675 



-57- 

Executive Order S756~A, dated Jime 28, 19o4, v/Iiich provided for 
local service trades agreements where 85 pjr cent of the memlDers of any 
desi^'nated trade a^^reed to a local coc'e of fair trade practices also 
provided that no mem'ber of a trade under a local Eigreernent v/as entitled 
to displaj'" IIHA insignia "unless he was complying;, with all terms of such 
local code, 

Ac'inini strati ve Order X-53 of June 28, 1954, provided in part that 
members of local service trades (the fair trade practice and code ad- 
ministration provisions of whose codes were suspended "by Executive Or- 
der 3723, ahove referred to) displaying insignia v/ere deemed to agree 
with the President to complj'' v/ith hoiu's of labor, rates of pay and other 
conditions of emplo^nnent under said code, and after the approval of a. 
local code of fair trade practices, then to comply with such fair pra.c- 
tices* 

. Atlministrative Order X-135 of February 25, 1935, delegated to the 
resp,ective code authorities T/hose codes made the use of labels mandatory 
the pOT/er to issue and administer the use of labels, subject to the 
provisions of the order foid such other rules ;and regulations as may be 
promulgated by l\f3A. Each such code authority was, within thirty da;;'S 
after the effective date of the order, to submit to NRA such rules end 
regulations for the sale, issue and administration of the use of the 
label ^as might be necessery to carry out the provisions, of the order. 
Such.r-ules rnd .regula.tions .-eind any rules and regulations v/hich might be 
submitted oir v/ay of amendment or addition thereto v;ere to be deemed 
ariproved and were to become effective fourteen days after being sub- 
mitted unless disapproved or amended by N3A within such period. Labels 
v/ere to bear the Blue Eagle unless ITPJl otherwise provided and were to 
be so attached to the article that all matter printed or otherwise set 
forth thereon would, be "visible upon reasonable inspection." Labels 
issued- within an industry for use in one price class or on one type of 
product were to be ijiiiform in design and were not to be used in any 
other price class or on enir other type of rjrticle. Contents of labels 
were subject to the disapproval of HEA. Any transfer or use of labels 
unauthorized b^"" rules and regTilations of the code authority concerned 
was expressly prohibited. In addition to provisions similar to those 
of Ac'ministrative Order X-38, above referred to, prohibiting any member 
of an indlustry subject to a code containing majid.atory label provisions 
from selling, dealing in or using any label bearing the Blue Eagle other 
than that issued by the Code authority for such industry, Order X-135 
also provided that no persons or firms, whether members of the industry 
concerned- or not, other than those specifically authorized ^oir the re- 
spective codie authorities, were 'to. manufacture, ca.use to be manufactur- 
ed, sell or deal in labels bearing the Blue Eagle which were designed 
for -or were susceptible of use in any industry subject to a code con- 
taining a mandatory label provision; nor were any such persons or firms 
to manufacture, cause to be manufactured, sell or deal in any labels which 
were designed or had- the tendency to simulate emblems or insignia issued 
under the authority of the respective code authorities* 

Provisions similar to those of Administrative Order X-38 requiring 
all applicants for labels to sign statements of complirnce and prohi- 
biting any one from falsely representing himself as in compliance were 
also included. 
9675 



-53- 

Uncler Acixiinistrative Cr»:'or X~135 no code o.uthority V7as to suspend or re- 
surae the issue of lal/els or vdthura;/ or restore the right to use la.tels 
unless the Conplictnce ond Enforcement Director or the IIRA Lahel Atrency 
had issued an order approving and directing:; such action. Neither the 
code authority nor any cfJicer nor any employee thereof v/as to impose, 
denic:id or accept an^?" fine or make the pajTtient of a fine a condition 
precedent to not recom-nonding the denial or suspension of the issue of 
labels, nor were they to demand or accept the painnent of the costs of 
investi/;;ation without the erpress approval of the NHA Lah.el Agency. Ho 
char^^'e for laoels v/as to take effect until approved by NRA and such 
char.^-e v/rs to he subject to the supervision, modification and disapprov- 
al of the I'IPA. i^o code authority vras to spend funds derived from the 
sale of labels except under the provisions of a bud^^et submitted to and 
duly approved by I'HA. and in no case were sv.ch funds to be used to malce 
contributions to trade association expenses or to the expenses of other 
or^'anizations, except that such funds might be used to defray the ex- 
penses of a regularly constituted code authority or of such agencies 
of such code authority as it mi-zht deem advisable to employ in ac'inin- 
istering its code to the extent permitted by its budget and its code. 
Code authorities were to mal'e such reports, concerning the sale, charges, 
issuance , distribution, suspension, v/ithdrrwal, investigation and ad- 
ministration of the use of labels bearing IIRA insignia as the NUAl might 
fro:n time to time require. 

Ao-niinistrative Order X-I08, issued March 50, 1935, provided that 
no one v/as to reproduce the Blue Eagle insignia — whether for parti- 
cular trades or industries operating under codes, issued under the PRA, 
or for sheltered worksnops — for his own use or for the use of another 
v/ithout v<Titten authorir^ation from the NRA. 

Reproduction authorizations theretofore issued by the ITHA were 
continued in force but each such authorization and all reproduction 
authorizations thereafter issued might be cancelled at any time by the 
IIHA upon a finding 01- it that the reproducer had violated any provi- 
sion of any code, Presidential agreement, rule or regulation prescribed 
or approved under the Act. 

Admini strati-;^ Order X~144 of September 4, 1935, cancelled all 
authorizations to reproduce the Blue Eagle theretofore issued and pro- 
vided that thereafter no one v/as to reproduce either for his own use or 
for the use of another an;,'' Blue Eagle emblem or insignia, issued, 
adopted or approved by the KHA or any label bearing any such Blue Eagle 
insignia or emblem. 

SHSLTEIED WORKSHOPS' INSIGNIA 

Ad'ainistrative Order X-9 of March 3, 1954, provided, among other 
things, that a shelterad workshop which had signed and was complying 
with the pledge not to employ minors nor to engage in destructive price 
cutting or v.-n-j other unfair method of competition would be entitled, 
while so complying, to use any appropriate insignia of the NRA. In the 
event pin.i'- sheltered v/orkshop violated its pledge, the full record in 
such case v/as to be reported to the N?A. by the National Sheltered ITorl^ 
shop Committee (created by this order) for revocation of the right to 
use N?Jl insignia. 



-59- 

Ar'ministrative Order X~28 of May 11, 1934, provided, among other 
things, that the insiv^iia used "by sheltered vrarkshops was to "be the same 
Blue Eagle issued \inder the FRA with the addition of "S.W. Permit ITO. 

", and that it was to appe^U" on all products made "by a sheltered 

workshop where similar goods privately manufactured were required "by a 
code to "bear insignia. 

Ad:ninistrative Order X-59, dated July 2, 1934, authorized the Ha»- 
tional Sheltered Workshop Committee to print and' issue the HRA insignia 
designated "by Order X-28 and to charge not m.ore than an amount necessary 
to cover the cost of printing and the reasonable cost of administration 
and supervision of the use thereof. Prior to issuance of labels the 
Committee was to determine whether an institution was or was not a 
"sheltered workshop" on the basis of information furnished by the in- 
stitution; insignia w<.re then to be issued to duly designated shelter- 
ed Y/orkshops v/hich had signed the pledge of cooperation and such work- 
shop could continue displaying or using insignia so long as they were 
complying with conditions of the pledge. All sheltered, workshops pro- 
ducts were to bear labels and such products might be purchased, sold or 
exchanged by retailers v/ho would not therefor be in violation of Section 
2, Article IX of the Retail Code. *•' In all cases v/nere the sheltered 
workshop did not have title to products, or v/here a person subject to 
a code did further manufacturing v;ork upon products, no NEA insignia 
were to be placed on such products unless bhe person having title or 
the person by v/hcra the products would be finished hold a certificate 
from the code authority of the applicable code. 

Administrative Order X-81 of September 1, 1954, vested the National 
Sheltered Workshop Committee with the exclusive power to issue to 
sheltered workshops labels bearing NSA insignia, provid.ed the workshops 
had signed pnd were complying with their pledge of cooperation. Upon 
receipt of complaint thnt a workshop was in violation of any of the 
conditions of its pledge, or any order applying to it, and after an 
adequate opportunity to be he^ird, the Committee m.ight suspend the 
issuance of labels to such v/orkshop and was immeddately to file -with 
the lIPuA Compliance Division a summ^ary of the record of hearing with such 
recommendations as it m.ight deem proper. The Compliance Division was 
then to proceed njid to have such powers and duties as -were provided in 
the case of suspension of issuance of labels by a code authority. 

Adjninistrative Order X-lll-l of February 9, 1935, provided in part 
that the National Sheltered Workshop Committee was to make its report 
and recommendations concerning workshops alleged to be in violation of 
their pledge or any rule or regulation to the National Industrial Re- 
covery Board, which Board might either overrule the Coramiittee's ord.ers 

* "No retailer shall purchase, sell, or exchange any merchandise manu- 
factured under a Code of Pair Competition which requires such mer- 
chandise to bear an NRA label, unless said merchandise bears such 
label. Any retailer rightfully possessing the insignia of the NRA 
who has in stock or purchases similar merchandise which has been manu- 
fa.ctured. before the effective date of the Code of Pair Competition 
requiring such merchandise to bear an NRii. label may attach thereto 
the NRA insignia.!' 

9675 



-60- 

as to suspension of issuance of latals or withdraw the right to use 
latels njnd exhihit insij_,nia from the workshop in violation. 

PRISON IMDUSTPJES irSIG-NIA 

Achninistrative Order V-2, issued A}oril 19, 1934, provided that all 
goods, wares, or merchandise mode, in v;hole or in part, in the penal or 
correctional institutions of ':my state which v/as adhering to the Cor.:— 
pact of Pair Competition for the Prison Industries of the United States 
of A'lierica, or made in such institutions of any political suodivision 
of such stc'tes, ivere to "bear an ITRA identification symhol whenever 
similar gooc.s rpr'n oy industries covered '"oy codes vere required to hear 
an ITHA lahel e iEf.rh srvTnDol v/as to hear a serial registration numher 
assif^ned to each cta^-e,.. political s^j-hdivision or inotitution thereof 
by the Prison La'bc.v .tviithority. The symhol v/as to "be attached to pro- 
cucts viheii sold, shipped or distributed hy any penal or correctional 
institution subject to the provisions of the Prison Compact, IIHA 
identification sjTnbols v.-ere to bo used only by institutions or states 
which hrd been granted permits to use such insignia, and permits were 
to be graiited only mien applications therefor v/ere accompanied by certi- 
ficates of compliance with the Prison Compact pjid were to continue in 
force on]^'" so lon^s as the institutions to which. permits were issued 
were coniplying v/ith the Compact. 

xlie IJHA identification symbol authorized by Administrative Order 
V"2 v/as to be the NHA insignia issued under the PSA except that the 
word "member" was to be omitted and under the words "we do our part" 
were to be the follov/ing words "Ident. No, ". Tiie charge m.ade by the 
Prison Labor Authority for such symbol was at all times to be subject 
to ••■.hs supervision and orders of the President and was not to be more 
thfjn a"'] amount necessary to cover its design, printing, fabrication, 
distribv. ■".i )n and administration, -cjid. supervision of the use thereof. 

-•dr.-;--:?.istrative Order V-3 of June 12, 1934, provided that the word 
"CompacJ'' was to be printed above "Ident. No, " on all labels there- 
after i-br:.3d but the order in no v/ay affected those issued prior to that 
date. 

TERRITORIAL INSIGNIA 

Administrative Order X~60 of July 2, 1934, authorized the Deputy 
Administrators for the Territories of Hawaii and Puerto Rico to have 
prepared end to issue labels to members of trades or industries in the 
territories corresponding in design to those issued by code authorities 
for corresponding mainlpud ino.ustries. Such deputies were to provide 
rules and regulations governing the m.anuf acture, issuance and use of 
such labels, and v/ere to impose charges corresponding to rules and regu- 
lations 8JLd charges for similar labels issued for corresponding indus- 
tries on the mainland. Labels issued for Hawaii were to bear the letter 
"H" G:id for Puerto Rico, the letters "P.R." A certificate of compliance 
with the territorial agreement was required prior to issuance of labels* 



9675 



-61- 

CHAP'TE-R XXIV 

GOVSmaiElTT COKTIUCTS 



There vras no provinion in the Act concerning government contracts. 
Nevertheless, Executive Order 6246 — the first order issued requiring 
contractors vrith the government to comply uith all previsions of the ap- 
plicable approved code or with the PHi — "began uith the words "By virtue 
of the authoritj;^ vested in (the President) "by the Act of Congress en- 
titled 'An Act to encourage national industrial recovery, etc.'" The 
second order relating to government contracts — Executive Order 6646 — 
was issued "By virtue of authority vested in me as President of the United 
States, etc." (*J 

Executive Order 6246, dated Auj-nJst 10, 1933, provided that every con- 
tract entered into within the limits of the United States or "by the United 
States or any of its agencies or instiiuuentalities for supplies mined, 
produced, or manufactured in the United States, v/as to provid-e and require 
that the contractor v;as to coi.iply with ell provisions of the applicable 
approved code for the trade or industry or subdivision thereof concerned 
or with the provisions of the PHA, without regard to \7hether the con- 
tractor was himself a party to such code or agreement. If the contractor 
failed to comply with the foregoing provision, the government could "by 
written notice to the contractor ten".inate the contractor's right to pro- 
ceed with the contract and purchase in the open market the undelivered 
portion of the supplies covered "by the contra,ct, and the contractor and 
his sureties v;ere to be "lia,ble to the goverrjiient for any excess cost oc- 
casioned by the government thereby." 

Executive Order 6646 of Ilarch 14,. 1934, provided that all invitations 
to bidders thereafter promulgated by or in behalf of any executive depart- 
ment or independent establishment or other agency.' of the United States was 
to contain a p>rovision to the effect that no bid was to be considered un- 
less it included or was accompanied by a certificate duly executed by the 
bidder stating that the bidder was complying and would continue to comply 
v/ith each approved code of fair competition to which he was subject, or 
if engaged in any trade or industn/- for which there was no approved code, 
then with the provisions of the PEA. Wo bid which did not com-oly with 
the foregoing requirements was to be considered or accepted. All contracts 
and purchase orders authorized oy any agency of the United States were to 
contain a provision to the effect that the party or parties awarded any 
such contract or purchase order were to comply with the provisions of 
each applicable code or with the PBA and that the United States was to 
have the right to cancel any contract for failure to comply with such pro- 
vision and to malce open market purchases or have the work called for by 
the contract otherwise performed, at the expense of the contractor. No 
agency of the United States and no government contractor or supplier was 
thereafter to "accept, or purchase for the performance of any contract or 
pur chase. order or enter into any subcontracts for an.y articles, materials, 
or supplies, in whole or in part produced or furnished by any person" who 
had not certified that he was complying and would continue to comply with 
each applicable code or the PPA.. 

(*) Apparently any authority in the Act for the issuance of these orders 
must rest on Section 10(a). 

9675 



The forei^olnr; -orovisions of Executive Order 664-6 vrere likewise to 
"apply to all contracts and Durchase orders authorized by any state, 
municipal coirporation, local subdivision, person, or corporation in con- 
nection V'ith projects carried out or to "be carried out, viholly or in 
part, rrith funds loaned or granted oy any agency of the United States," 
and all contracts and agreements for the making of any such loan or grant 
were to contain a provision requiring the state, nuniciiDal corporation, 
local subdivision, person or cor];joration receiving such losji or grant, to 
comply with the provisions of the order; provided that this paragraph was 
not to be constraed as requiring the restriction of the use of materials 
to those produced within the United States nor to require price differen- 
tials in favor of such materials. 

Any person falsely certifying as to compliance v;ho submitted any such 
proposal, bid, contract, or subcontract, or accepted any purchase order, 
might be punished by a fine of not to exceed $500 or imprisonment not to 
exceed 6 months, or both, and in the event of false certification by any 
person the unfinished portion of any contract to which he was party might 
be completed at the expense of the person gu.ilty of such false certifica- 
tion and his sureties, if any. 

The Administrator was authorized to make exceptions in specific cases , 
or otherr.'ise under the order whenever such action was recommended to him J 
by an agency of the United States and when in the judgment of the Adminis- 
trator justice or public interest wo->ald best be served thereby. 

Exceptions from Executive Order 664 6 

Administrative Order X-13 of April 6, 1934, excepted all government 
contracts and purchase orders to be performed in the Canal Zone from the 
provisions of Executive Order 6646. 

Administrative Order X-15 of April 11, 1934, excepted "all purchases 
which must be made or contracts or leases which must be performed in for- 
eign countries" from the ojjeration of Executive Order 6646. 

Administrative Order X-16 of April 11, 1934, excepted from the pro- 
visions of Executive Order 6646 any contracts, sub- con tracts and/or pur- 
chase orders entered into to perform work covered by a defaulted contract 
when the defaulted contractor's sureties failed to complete such contract, 

Administrative Order X-17 or April 11, 1934, excepted from the opera- 
tion of Executive Order 6646' the following: (l) emergency purchases less 
than $50, and other emergency purchases, including those based on tele- 
graphic bids, when in the purchasing officer's opinion it was not possible 
or practicable to obtain certificates of compliance; (2) all contracts, 
leases or purchases of any nature made r.dth or/ from any state government, 
or of any 2J0litical subdivision thereof except contracts for projects 
carried out wholly or in part with government funds; (3) all leases in- 
volving rental of land for any purposes where no services were rendered 
to the govemm.e2it by the lessor; (4) all leases involving annual rental 
of not exceeding $500; and (5) purchase orders, contracts or leases made 
in American possessions or territories outside of continental limits of 
the United States where territorial codes or territorial modifications 
of basic codes had not been approved. 

9675 



-63- 



AclTiini street ive Order X-23, dated April 19, 1934, excepted all 
leases for Post Office quarters in such cases where field investiga- 
tions and ne;;i;otiations had been completed and where administrative 
routine had oeen effected as of that drte from the provisions of 
Executive Order 6646. 

Administrative Order X-25 of April 26, 1934, excepted an individual, 
trustee of a railway company, from the operation of Executive Order 
6646 and from codes then or later ap"Droved in expending funds received 
from the Reconstruction Finance Corporation in accordance with his 
agreement with RFC or by order of the Intersta.te Commerce Commission, 
However, funds for any contracts entered into by the trustee, to in- 
sure the ;oerforraance of which he obtained security from the contractor, 
were to be expended by the contractor subject to all applicable codes. 

Administrative Order X-30 of May 15, 1934, excepted from the opera- 
tion of ExecuLtive Order 6646 contracts negotiated by the Immigration 
and Naturalization Service, United States Department of Labor, cover- 
ing (l) detention ajid maintenance of aliens in county jails and other 
public or charitable institutions; (2) water, gas, electricity, tele- 
phone aJid other services furnished by public utilities as a part of 
their regular service; (3) medical care of aliens by private physicians 
and (4) hospitalization of aliens, 

Adminis.trrtive Order X-ol of May 15, 1934, excepted from the pro- 
visions of Executive Order 6G46 movements of government freight or 
personnel over steamship, air plane, bus or express lines where publish- 
ed tariff rates were in effect. 

Administrative Order X-32 of May 16, 1934, rescinded Administrative 
Order X-16, set forth above, (*) concerning defaulted contracts. 

Administrative Orders X-33 and X-34, both of May 16, 1934, except- 
ed specific contracts from the provisions of Executive. Order 6646, 

Administrative Order X-40 of May 29, 1934, excepted from the opera- 
tion of ExGcutivG. Order 6646 cooperative agreements between the Depart- 
ment of Agriculture and individuals, corporations and/or other persons 
for the -Q^jjrpose of effecting or conducting experimental work in con- 
nection with agricultural products including the manufacturing or pro- 
cessing of agricultural products or derivatives, provided any monetary 
consideration paid to the cooper-'tors did not exceed actual cost. 

Administrative Order X-41 of May 29, 1934, excepted from the 
provisions of Executive Order 6646 the Anerican University of Washington, 
D. C, as a lessor for quarters to house the Fertilizer Investigations 
of the Bureau of Chemistry and Soils. 

Administrative Order X-42 of May 29, 1934, excepted from the 
operation of Executive Order 6646 all materials and articles of forei;2'n 
origin purchased under Title III of the Act ap-oroved March 3, 1933, 

(*) See p, 62, above, 
9675 



-64- 



entitled "Aii Act making pporopriations for the Treasury and Post Office 
Departments for the fi-scal year ending Jiine 30, 1934, and for other 
purposes." 

Acaninistrative Order X-43, drtod June 9, 1934, cxco-Dted from the 
provisions of Executive Order 6646 all persons, concerns. or industries 
not included in or ccvered "by the National Industrial Recovery Act or 
who through Executive or Adriinistrptive Orders w^re exempted from the 
operation or application of approved codes or the PHA, provided that 
the "bidj.er certified th-^.t he or it 'jras not included or covered or iras 
exempted as aforesaid.. 

Administrative Order X-44 of June 9, 1934, excepted from the opera- 
tion of Executive Order 6646 contracts for star route service, regula- 
tion screen "body motor vehicle service and mail messenger service, in 
all cases vrhere proposals x^evQ invj.ted on or "before March 14, 1934. 

Administrative Order X-45 of June 9, 1934, excepted leases for 
Post Office quarters in response to invitations antedating Executive 
Order 6646 from the provisions thereof, 

Administrptive Order X-46 of June 11, 1934, excepted from the 
operation of Executive Order 6646 all purchase orders, or contracts for 
supplies or equipment, or for the procurement of services, or open 
market purchases, when the agp;regate amount did not exceed $100 in any 
instonce; provided that contracting or purchasing officer certified 
that it was either irapracticahle or impossible to obtain a certificate 
of compliance, •■ 

Administr.-^tive Order X-47 of June 12, 1934, excepted a specific 
lease of quarters until September 1, 1934, from the provisions of 
Executive Order 6646. 

Administrative Order X-49 of June 13, 1934, excepted leases or 
agreements with Yale University for space and services furnished the 
Department of Agriculture from the opcrrtion of Executive Order 6646. 

AdministrativG Order X-52 of June 25, 1934, e::cepted from the 
provisions of Executive Order 6646 all activities of the Reconstruction 
Finance Corporation pursuant to its statutory powers as of June 8, 1934, 
except agreements e::ec-j-ted after March 14, 1934, and agreements executed 
prior thereto which permit additional conditions to be imposed by RFC. 

Administrative Orders X-55, X-56, X-57 c'lnd X-58, all of June 29, 
1934, excepted specific contracts from the operation of Executive 
Order 6646. 

Administrative Orders X-64, X-65, both of July 10, 1934, and X-66 
of July 17, 1934, excepted specific contracts and leases from the pro- 
visions of Executive Order 6646. . , 

Administrative Order X-67, of July 18, 1934, excepted from the 
operation of Executive Order 6646 a.ll contracts for tug boat and tow 

9675 






-55- 



boat services vrith all Departments and agencies of the United States 
Govornjieit, pending the approval of the code for the industry and 
notice of such ap"Droval to the Procurement Division of the Treasury, 

Administrative Order X-68, issued J^ily 26, .1934, designated the 
Administrr^tor for the Petroleum Industry to decide any dispute which 
arose "betv^een any agency of the United States and any "bidder, con- 
tractor, sup-nlier, or other person as to compliance with the Petroleum 
Code in connection nith any proT)Osal, hid, contract, suh-contract, or 
purchr^se order mentioned in Executive Order 6646. 

AoJiiiriiv '•rr-'/ive Order X-70 of August 2, 1934, excepted a specific 
lease from the "ciovisions of Executive Order 6646. 

Administrative Order X--71 of August o, 1934, excepted from the 
operrtion of Executive Order 6646 contracts for public utility services 
comprising teleDhone, electricity, gas, rrptor and stesm, 'Fhenever in. 
the judgi.ient of the procurement of contracting officer it was im- 
pra.cticahle or. impossible to obtrin certificates of compliance, pro- 
vided that the agency awarding any contr.-^.ct under this exce-otion certi- 
fied to the ITP^ "'ia Procurement ■ Division, Treasury Department, (l) 
services covered, (2) tern of contrrct, and (3) nruiies of parties thereto, 

AoJiiinistra.tive Orders^ X-74, X-75, X-76 and X-77, all of August 20, 
1934^, exce-Dted sp^ecific contracts from the Drovisions of Executive Order 
6646. " 

Adtiinistrative Order X-79 of August 24, 1934, excepted from the 
operrticn' of Executive Order 6646 all contracts with all Departments 
and agencies of the United States G-overniiient for transporting freight 
and/o.r ^passengers on the Columbia Hiver audits tributa^ries and on all 
inland v^aters west of the Cascade Ivioantains bet\/een the Columbia Hiver 
and the northern bOLmdary of the Sta.te of California Trending the 
approval of the code for the Inland Water Carrier Trade in the West 
Division of the United States, Columbia llivor District* 

Administrative Order X-83 of September 5, 1934, excepted a specific 
lea'-.'e from the iDrovisions of Executive Order 6646; Order X-86 of Sep- 
tember 14, 1934, likewise excepted the extension of a lease until a 
FederaJL Building, then under construction, v;as available for occu-pancy. 

Administrative Orders X-87 ajid X.-88 of September 17 and September 
21, 1934, res"nectively, excerpted STjecific contracts from the operation 
of Exec-tive Order 6646. 

Administrative urders X-90 of September 21, 1934, and X-91 and 
X-92 of September 22, 1934, excepted specific contracts from the provi- 
sions of Executive Order 6646. 

AcViinistrative Orders X-94 and X-95 of October 9, and X-96 of 
October 10, and X-97 of October 11, 1934, excepted specific contracts 
from the o-oeration of Executive Order 6646. 



9675 






Administrative Orders X-9y, X-IOO ,ruid X-lOi, all of October 17, 
1934, excepted specific contracts from the provisions of Executive Order 
6646. 

Administrative Orcer X-102 of October 22, 1934, exce-oted from the 
operr.tion of Executive Order 6646 a loan contract betrreen IlEC and 
the Metropolitan I7ater District of Southern California provided the 
District coLTplied strictly vith Chaioter 1039, Statutes of 1933, Sec- 
tion 4, of the State of California, that the District requested all 
persons submitting bids to furnish certificates of compliance to each 
applicable aporoved code or to the PHA, and that the District complied 
with any and all aporovod codes which would apT)ly to private persons 
or concerns for any oioeraticns or enterprises \mdertaken by it in com- 
petition v'ith private industry^ 

Adninistrative Orders X-103, X-104 ajid X-105, all of October 23, 
1934, excepted specific contracts and a lease from the provisions of 
Executive Order 6546. 

Adninistra.tive Orders X-ins, X-1^^9, of November 1, and X-llO 
of November 7, 1934, excepted specific contracts from the operation of 
Executive Order 6546. 

Administrative Orders X-112 of November 14, X-113 of November 15, 
X-114 and X-115 of November 16, and X-116 of November 27, 1934, ex- 
cepted specific contracts from the ■orovisions of Executive Order 6646« 

Adi.iinistrrtive Orders X-113 of December 5. X-120 of December 7 
and X-121 of December 12, 1934, excepted specific contracts from the 
operation of Executive Order 6646. 

AdLiinistrative Order X-123 of December 15, 1934, designated and 
authorized the Compliance and Enforcement Director as the agent of the 
National Industrial Recovery Doard to decide all questions arising 
under Executive Order 6646 i^ithin the ju.risdiction of said Board, ex- 
cept such as '-'ere within the jurisdiction of the Administrator for the 
Petroleum Indiistry by virtue of Administr?^tive Order X-68 (*) and in 
its authority, to issue necessrry orders to effect such decisions. 

Administrative Orders X-125, X-126, X-127 and X-128, all of 
December 18, 1934, excepted specific contracts and a lease from the 
provisions of Executive Order 6546- 

Administrative Order X-129 of December 26, 1934, excepted a 
specific lessor from the requirement of securinj^; miscellaneous articles 
or supplies only from persons certified as in compliance with applicable 
codes or PEA, provided that the exception did not epply to articles 
or supplies furnished directly to or on acco-unt of space covered by 
the lease. 



(*) See p. 55, above. 
9675 



-67- 



Administr^tive Crc.ers G-C-71 (*) of 'January 9, 1935, excepted a 
specific lease; GC-72, Janupry 15; GC-73, January 16; GC-74, January 
22; C-C-75, January ^5; GC-76, January 28; GC-77, February 25; GG-78, 
March 26; GC~79 and GC--80, both of April 1, and GC-81, April 5, 1935, all 
excepted s-oecific contracts from the orerrtion of Executive Order 6646, 

Administrative Order GC-82 of April 8, 1935, excepted the invita- 
tions to bid and contract in a specific instance from the provisions 
of Exocr.tivc Order 664G, 

Administrptive Orders GG-83, April 10; GC-84, ADril 19; GC-85 
and GC-86 and GC-87, all of May 15; and GC-88, May 22, 1935, excepted 
specific contracts from the operation of Executive Order 6646. 

Administrptive Order GC-89 of May 29, 1935, excepted from the 
operation of Executive" Order 6646 all action ordered under paragraphs 
one to six inclusive, until further notice. Administrative Order GC- 
90 of June 3, 1935, modified GC-89 "by exceiDting from the operation of 
Execr.tive Order 6646 action ordered under parpgraphs one to four in- 
clusive, only. However, the intent of "both GC-89 and GC-90 was 
virtually to rescind Executive Order 6646 by granting a general exera-otion 
to the o-oerrtion thereof. This, of course, was a concomitant of the 
Supreme Co-uxt decision of May 27, 1935, in the Schechter case, 

Administrptive Order X-48 of June 12, 1934, -orovided that members 
of ind.ustry subject to codes, notwithstanding any code provisions to 
the contrary governing the making of quotations to governmental agencies, 
who bid or might bid on contracts to be awarded by governmental agencies, 
might: (a) Quote prices and terms of sale to governnental agencies 
as favorable as those permitted to be quoted to any commercial buyer 
for IVxe quantities; (b) Q;uote definite prices or terms of sale not 
subject to adjustment resulting in increased cost during the life of 
the contract, for definite quantities and for definite periods not to 
exceed three months (unless a longer period was "oermitted "hor any code); 
(c) Q;aote definite prices or terms of sale, not subject to adjustment 
resulting in increased costs during the life of the contract, for in- 
definite quantities and for definite "oeriods not to exceed six months 
(unless a longer 'oeriod was permitted by any cod.e); (d) Qp.ote prices 
and terms to apply on contracts to become effective not more than 
sixty days from the date of the opening of bids; (e) Q^ote -prices F.O.B. 
point of origin and/or F.O.E. destination. 

The exemption granted by Administrative Order X-48 was limited to 
and opera.tive only in connection with quotations made by members of 
industry to governmental agencies; nothing in the order was to operp.te 
to permit deviation from or abandonment of open price and cost pro- 
tection provisions of codes, nor to relieve any such member at any 
time from the duty of complying with all other provisions of such codes. 

(*) At the begin ing of 1935 all Administrative Orders relating to 
govox-n:uent contracts v/ere renurnbered in a new series, GG-, and 
were no longer -orinted as general Administrptive Orders, 

9675 



-68- 



Executive Order 6757 of June 29, 1954, Drovided in part that any 
person sutraitting a "bid to o- governMentrl agency might quote prices 
15 per cent "belo'.? filed "orices -under the apolicable code, if, after the 
hids uere opened, each "bidder quotiag a price -or prices "below his filed 
price .or prices immediately filed a copy of his -"bid viith the code author- 
ity or other apnropriate agency. The order also authorized the Adminis- 
trator upon complaint to reduce the 15 per cent tolerance hut not "below 
5 per centj if after due investigation he found that the 15 per cent 
tolerrzice permitted "by the order was resulting in des tract ive_ price 
cutting in a particular trade or industry, All -orior Executive Orders, 
including Executive Order 5646, set forth ahove (*) \7ere modified to 
the extent that, they were in conflict or inconsistent rith Executive 
Order 6767. 



(*) . See p, 61 et seq. 



9675 



-59- 

CKIPTER XXV 

BUD&ETS AKD ASSESGI/EITTS 



There was no provision in the Act for the collection of expenses 
of code administration and in a mmioer of the early codes no provisions 
concerning code administration expenses appeared, that problem "being 
left to the code authorities.- It was not until April 14, 1934, that 
Executive Order 5678 was issued requiring code authorities to suhmit for 
NRA approval "budgets and "bases of contri"bution. A clause suggested for 
inclusion in codes was set forth as follo'js: 

"1. It 'ceing found necessary, in order to support the 
administration of this Code and to maintain the standards of 
fair competition established 'by this Code and to effectuate 
the policy of the Act, the Code Authority is authorized, 
subject to the approval of the Administrator: 

"(a) To incur such reasonable obligations as are 
necessary and proper for the foregoing purposes and to . ' ■ 
meet such obligations oiit of funds which may be raised 
as hereinafter provided and which shall be held in 
trust for the purposes of the Code; 

"(b) To submit to the Administrator for this 
approval, subject to such notice and opportunity to be 
heard as he may deem necessary, (1) an itemized budget 
of its estimated expenses for the foregoing purposes, 
and (2) an equitable basis upon which the funds neces- 
sary to support such budget shaJl be contributed by 
members of the Industry; 

"(c) After such budget and basis of contribution 
have been approved by the Administrator, to determine 
and secure equitable contribution as above set forth 
by all such mombers of the Industry, and to that end, 
if necessary, to institute legal proceedings therefor 
in its own name . 
"2. Only members of the Industry complying with the Code and 
contributing to the expenses of its a^drainistration as provided in 
Section 1 hereof shall be entitled to participate in the selection 
of the members of the Code Authority or to receive the benefit 
of its voliontary activities or to make use of any emblem or insig- 
nia of the National Recovery Administration." 

Administrative Order X-2C, of the same date, prescribed supple- 
mentary regulations to the effect that a member of a trade or industry, 
the code for v/hich contained a provision Y/horeunder non-payment of an 
equitable contribution of the costs of code administration was to be 
deemed in violation of that code only if the Administrator had approved 
an itemized budget and an equitable basis of contribution. It was also 
clearly to be set forth that the member had received due notice of 
contribution due, which notice stated (l) the basis of contribution and 
the fact that it had been approved by the Administra,tor, (2) that con- 
tinued non-payment after thirty days of the receipt of the notice was a 
violation of the code, and (3) the right of the member to file a protest 

9675 



-70- 

uithin 15 days on the ground that the "basis of contribution as applied 
to such member was unjust or that the basis of contribution was not being 
followed by the code authority. If the member l^ad not paid the amount 
due within ^0 days of the receipt of the notice and if he had failed to 
file a protest within 15 days from the date of notice, he was open to the 
charge of violation. IIo member of any trade or industry, however, was 
to be deemed in violation of a code for failure to contribute to the 
expenses of administration of the code for any trade or industry other 
than tha.t which embraced his principal line of business, subject to such 
exceptions as NHA might provide. 

Office Memorandum 199, of May 5, 1934, further prescribed that 
either a public hearing or an opportunity to be heard was necessary in 
the case of every budget and basis of contribution, the circumstances in 
each case to determine. This memorandum further provided that "adeauate 
steps sho"ald be taicen by the code authority to safeguard the funds". 

Administrative Order X-oS of May 26, 1934, #iich rescinded Order 
X--20, contained provisions similar to Administrative Order X-20, with the 
exception of Paragraph III: 

"Pending determinations by ITBA with respect to specific 
Codes upon cause shov;n by a Code Authority or otherwise, every 
member of a trade or industry is hereby exempted from any 
obligation to contribute to the expenses of administration of 
any Code or Codes other tlian the Code for the trade or 
industry which embraces his principal line of business, provid- 
ed that he shall submit such information and comply with such 
regulations with respect to such exemption as N?lA may require 
or prescribe ." 

Farther requirements concerning budgets and bases of contribution 
T;ere prescribed by Office Memorandum 263 of July 17, 1934. At that time 
it was stated that if collection of funds was on a voluntary basis, no 
approval was necessary, but a budget and basis of contribution should be 
submitted to KRA. As to budgets, the definite period of time covered was 
to be stated; only items authorized by code provisions were to be includ- 
ed; pre-code expenses were not to be included in that portion of a budget 
to be met by compulsory'' contributions; and budgets for sub-code authori- 
ties, were to receive separate approval unless approved as a part of 
budgets of national code authorities. Bases of contribution must conform 
to code provisions, must be reasonable in amoiont, equitable in operation, 
and properly related to the budget. The code authority was to malie 
provision for the safeguarding of funds as follows: 

"(a) Designation of the person or persons who will 
receive and account for all funds. 

" (ti) The giving of adequate security by him or them. 

"(c) The segregation of the Code Authority funds 
from all others, separate bank accounts being necessary. 

"(d) The keeping of accurate records of receipts and 
disbursements, of amounts levied, of amounts receivable, 
of amounts payable, and of commitments. 

"(g) The submission of periodic reports to NRA.. 

"(f) An annual audit by independent oatside competent 
agency" . 

9675 



-71- 



Achninistrative Order X-78 of August 21, 1934, provided that no 
order or termination of the exemption under Paragraph III of Adminis- 
trative Order X-36 (*) was to "be construed as requiring any member of 
!>ny trade or industry to contribute to the exoenses of the administra- 
tion of any code covering retail or wholesale aistrihution other than 
that code which covered his principal line of retail or wholesale dis- 
tribution, 

Ac^Jiiinistrative Order X-119 of December 5, 1934, reiterated in 
large paxt the provisions of Office Memorandum 263 concerning the pro- 
tection of funds received by code authorities. Instead of annual aU'its, 
as required by the Office Memorandum, audits at the expiration of each 
budget period by com.petent, independent auditors, were required. In 
addition, the code authority was required, irithin 60 days of the budget 
closing d-^te, to distribute to all members of the traae or industry \7ho 
paid assessments or otherwise contributed funds, a report of its finan- 
cial operr.tions for the budget period, and to file a copy thereof with 
the KEIA. Each code authority -jas required to furnish such information 
regarding its observance of the provisions of this order as the NBA 
might deem necessary, and any action of a code authority if found by 
MA not to be in accord '"-ith this order was subject to its disapproval. 

It was further required "oy Office Memornndum 323, issued December 
20, 1934, that code authoi'ities obtaining funds by means of voluntEiry 
contributions were to submit a report to the MA as of December 31, 
1934, The report was also to include copies of all assessment forms 
of notices sent to members of the industry. 

The single assessment i3rin6iple for establishments eng?^^ed in 
retail distribution was established by Administrative Order X-131, 
issued Jc-^nupxy 7, 1935. 3y that order each retail establishment was 
required to contribute only to its Torincipal line code authority based 
upon its total retail business either (l) at the rate of assessment 
aporoved for the principal line code or (2) upon its principal line 
at the rate aprroved for the principal line code and upon each iainor 
line at the rate a~p"oroved for e^ch minor line code. 

Administrative Order X-136 of February 26, 1935, required all code 
authorities whether collecting contributions on a voluntary or manda- 
tory basis to submit on or before Mnxch 31, 1935, to NRA for its 
apioroval an itemized budget of the estimated expenses of code adminis- 
tration for the current fiscal "oeriod and thereafter for each subse- 
quent fiscal period. The budget was to set forth in detail the duties 
of all officials and employees, their salaries and all office and other 
expenses to be incurred by the na-tional code authority and each regional 
code authority. No code authority was after March 31, 1935, to make sxiy 
expenditure of funds not in accordajice with a budget duly approved by 
the IIEA, After fifteen days from the date of this order each code 
authority whose code did not authorize collection of assessments on a 
mandatory basis was to solicit contributions only on forms which clearly 
stated, in effect, "this solicitation is for a purely voluntary contri- 
bu-tion, and while such contribution is deemed essential to carrying on 

(*) See p. 70, above, 
9675 



code administration no legal prosecution will follow non-pajnnent. " All 
forms used for the solicit^^tion of contri"butit;;ns "by epch code authority 
were to "oe sulDraitted "before use to the ITEA and were subject to disapproval 
by ERA. 

Office luemorrjidura 346 of March 18, 1935, provided that thereafter 
no "budgets and bases of contribution were to be ap-nroved containing 
fixed ninimum or maximum contributions, flat contributions uniform in 
amouiit for all members of an industry- or trade, or sliding scale contri- 
butions providing for increased or decreased payments in accordance with 
specified brackets of the basis of contribution. 

The problem of nuisrnce contributions vfere dealt -ith by Adminis- 
trative Order X-139 of April 10, 1935, which provided that thereafter 
applico/tioiis for ap-oroval of budgets and bases of contribution were to 
contain recommendations for repsonable classifications designed to elimi- 
nate nuisance contributions and for exemiDtions designed to avoid in- 
equitable contributions on articles not marketed per se , ajid all orders 
of approval of buagets issued after April 30, 1935, were to fix such 
reasonable classifications ajid exem-otions, EF..ch code authority then 
operc-.ting -onder a budget and basis of contribution not containing pro- 
vision for such reasonable classifications and exenrotions was to submit 
recommendations therefor before lupy 15, 1935, and, in the event any code 
authority failed so to do, the National Industrial Recovery Board after 
due consideration of all relevant facts would establish such classifi- 
cations and exemptions. 

Each separate establishment, whose lorincipail line of business 
measured oy dollar volume was retail distribution, v;as exerarpted by 
Administrative Order X-140 of April 11, 1935, from eny obligc-.tion to 
contribute to the eicpense of administration of any minor line non- 
retail code governing abortion of such establishment's business, pro- 
vided that that portion of busixiess governed by such non-retail code 
did not requ.ire the full time services of t"'0 or more employees, and 
provided fu.rther that in lo event was this order in any way to effect 
the obliga.tions of any such establish-ient to affix labels and to pay 
for such labels at rates approved by the ITEA pursuant to applicable 
code provisions and to Ac^-ministrative Orders X-58 and X-135. (*) 

Office Memorandum 351, of April 10, 1935, provided that a code 
authority could, without affording notice and opportunity to be heard, 
suspend the collection of assessments or reduce the rate of assessment 
below that authorized by its budget and basis of contribution provided 
that (l) such suspension or reduction was applied uniformly and equit- 
ably to all mem.bers of the industry and (2) such suspension or reduc- 
tion was to be effective and deemed approved if ITRA approved or failed 
to disapprove the same after 10 days' notice to l^A of the intention 
to initiate su.ch suspension or reduction. A code authority would 
resume its original basis of assessment or adopt a basis of assessment 
not grerter than its original one without affording notice and opport-unity 
to be lieard by complying with the sajno requirements as to suspension or 
reduction. 

(*) -See Chapter on Insic7;nia , pp» 55, 57 above. 
9675 



-73- 

APIEiroiX I. NATIOITAL IlIDUSTPJAl RECOVERY ACT 

(r-al:lic— Ho. 67— 73d Congress) 
(H.R. 5755) 

AI'T ACT 

To encouracjs national industrial recover^.^ to foster faif" competition, 
and to provide for the construction of certain useful public works, and 
for other purposes. 

Ee it' Mac ted "by the Senate and House of Representatives of the United 
Stntes of Americ a in Con^;ress asser nhled, 

TITLE I— IIT^USTPJAL RECOVERY 

Declaration Of Policy 

SECTIOIT 1, A national emergency productive of widespread unemployraent 
and disorf.'anisation of inc'ustry, ' v/hich "burdens interstate and foreign 
commerce, affects the public v/e If ai'e, and undermines the standards of 
livin ; of the Anierican people, is hereby declared to exist. It is here- 
by declared to be the. policy of' Congress to remove obstructions to the 
free flor of interstate and fd'eign commerce which tend to diminish the 
amount thereof; rnd to provide fo'r the general welfare by promoting th^ 
organization of industry for the purpose of cooperative action ainong 
trade groups, to induce '\nd maintain united action' 6f labor and manage- 
ment under adequate governmental sanctions and supervision, to eliminate 
unfair eomjpetitive pi'act.'.ces, to promote the fullest possible utiliza- 
tion- of "the present productive capacity of industries, to avoid undue 
restriction of production (e:;.cept as may be temporarily required) , to 
increG.se the consumption of industrial and agricultural products by in- 
creasing purchasing power, to reduce and relieve unemplojnuQnt , to im- 
prove standai'ds of labor, and otherwise to rehabilitate inaustry and to 
conserve natural resources'. 

Administrative Agencies 

SEC. 2. (a) To effectuate the policy of this title, the President is 
hereby authorized to establish such agencies, to accept tmd utilize such 
volunt£iry and uncompensated services, to appoint, without regard to the 
provisions 01 the civil service lav;s, such officers ;and employees, and 
to utilize such Federal officers and employees, and, with the consent of 
the State, , such State and local officers and employees, as he may find 
necessar^^, tc prescribe their authorities, duties, responsibilities, and 
tenure, and, without regard to the Classification Act of 1923, as amend- 
ed, to fix the compensation of aiiy officers and employees so appointed. 

(b) T]ie Pi'esident may delegate cjiy of his functions and powers under 
this title to such officers, agents, and employees as he may designate or 
appoint, ctA may enta.blish an industrial plannin;^ and research agency to 
aid in carrying out his functions under this title. 

(c) Tliis title shall cease to be in' effect and miy agencies establish- 
ed here'under shall cease to exir^t at the expiration of two years after 
the date of enactment of this Act,, or sooner if the President shall by 
proclamation or the Congress shall Idj joint resolution declare that the 
emergency recognized by section 1 has ended. 

9675 



-74- 

Codes of Fa.ir Competition 

SEC. 3, (a) Upon the aTDplication to the President "by one or more 
trade or industrial ansociations or p-roims, the President may approve 
a code or codes of fair com^^etition for the trade or industry or su1>- 
division thereof, re-oresented "cy the applicant or applicants, if the 
President finds (l) that such associations Or groups impose no in- 
equitalDle restrictions on- admission to memhership therein and are truly 
representative of such traders or industries or siibdivisions thereof, 
and (2) that such code or codes are not designed to promote monopolies 
or to eliminate or or)press small enterprises and vrill not operate to 
discriminate against them, and vrill tend to effectuate the policy of 
this titles Provided, That such code or codes shall not permit monopo- 
lies or monopolistic practice ss Provided further . That where such code 
or codes affect the services and -p^elfare of iDersons engaged in other 
steps of the economic. process, nothing in this section shall deprive 
such persons of the right to he heard -orior to approval "by the President 
of such code or codes. The President may, as a condition of his ap- 
proval of any such code, impose such conditions (includ.ing requirements 
for the making of reports and the keeping of accounts) for the protec- 
tion of consumers, competitors, eniplcyees, and others, and in further- 
ance of the puhlic interest, and may provide such exceptions to and ex- 
emptions from the provisions of such code, as the President in his dis- 
cretion deems necessary to effectuate tho policy herein declared, 

(h) After the President shall have approved any such code, the pro- 
visions of such code shall "be the standards of fair competition for 
such trade or industry or suhdix'-ision thereof. Any violation of such 
standards in any transaction in or affecting interstate or foreign com- 
merce shall he deemed an unfair method of competition in commerce vrithin 
the meaning of the federal Trade Commission Act, as amended; hut nothing 
in this title shall "be construed to impair the po^rers of the Federal 
Trade Commission under such Act, as amended, 

(c) The several district courts of the United States are herehy in- 
vested -^Tith jurisdiction to prevent and restrain violations of anj'' code 
of fair competition approved under this title; and it shall he the duty 
of the several district attorneys of the United States, in their re- 
spective districts, under the direction of the Attorney General, to in- 
stitute proceedings in equity to prevent and restrain such violations, 

(d) Upon his o-rm motion, or if complaint is made to the President 
that ahuses inimical to the puhlic interest and contrary to the policy 
herein declared are prevalent in any trade or industry or subdivision 
thereof, ejnA if no code of fair competition therefor has theretofore 
heen approved hy the President, the President, after such puhlic notice 
and hearing as he shall specify, may prescrihe and approve a code of 
fair competition for such trade or industry or suhdivision thereof, 
Fhich shall have the same effect as a code of fair competition approved 
hy the President under suhsection (a) of this section, 

(e) On his ovm. motion, or if Buy lahor organization, or any trade or 
industrial organization, association, or group, which has complied rrith 
the provisions of this title, shall make comola-int to the President that 
any article or articles are heing imported Into the United Sta.tes in 
suhstant'al quantities or increasing ratio to domestic production of any 
competitive article or articles and on such terms or under such condi- 
tions as to render ineffective or seriously to endanger the maintenance 

9675 



-75- 

of any code or a^rer^ment under this title, the President mav cause an 
immediate investigation to be made "by the United States Tariff Commission, 
which shall -^'ive precedence to investigations imder this subsection, and 
if, after sr.ch investigation and such public notice and hearing as he 
shall specify, the President Khali find the existence of such facts, he 
shall, in order to' effectuate the policy of this title, direct that the 
article or articles concerned shall be permitted entry into the United 
States only upon such terms pjid conditions and subject to the payment of 
such fees ajid to. such limitations in the tcto.l quantity which may be im- 
ported (in the course of any specified period or periods) as he shall 
find it necessary to prescribe in order that the entry thereof shall not 
render or tend to render ineffective any code or agreement made under 
this title. In order to enforce any limitations imposed on the total 
quantity of imports, in any specified period or periods, of any article, 
or articles under this subsection, the President may forbid the importa- 
tion of such article or articles unless the importer shall have first 
obtained from the Secretary of the Treasury a license purBuant to such 
regulations as the President may prescribe. Upon information of any ac- 
tion by the President under this subsection the Secretary of the Treasury 
shall, through the proper officers, permit entry of the article or arti- 
cles specified only upon such terms and conditions and subject to such 
fees, to such limitations in the quantity which may be imported, and to 
such requirements of license, as the President shall have directs. The 
decision of the President as to facts shall be conclusive. Any condition 
or limitation of entry under this subsection shall continue in effect 
until the President shall find and inform the Secretary of the Treasury 
that the conditions which led to the imposition of such condition or 
limitation upon entry no longer exists. 

(f) When a code of fair competition has been approved or prescribed 
by the President under this title, any violation of any provision thereof 
in any transaction in or affecting interstate or foreign commerce shall 
be a misclemeajior and upon conviction thereof an offender shall be fined 
not more than $500 for er-cli offense, and each day such violation contin- 
ues shall be deemed a separate offense. 

Agreements and Licenses 

SEC. 4. (a) The President is authorized to enter into agreements v/ith, 
ond to approve voliontrry agreements between ani among, persons engaged 
in a trade or industry, labor organizations, and trade or industrial or- 
ganizations, associations, or groups, relating to any trade or industry, 
if in his judgment such agreements vdll aid in effectuating the policy 
of this title with respect to transactions in or affecting interstate or 
foreign commerce, and v;ill be consistent vdth the requirements of clause 
(2) of subsection (a) of section 3 for a code of fair competition. 

(b) Wlienever the President shall find that destructive wage or price 
cutting or other activities contrary to the p^olicy of this title are 
being pra.cticed in any trade or industry or any subdivision thereof, and, 
after such public notice cind heriring as he shall specify, shall find it 
essential to license business enterprises in order to make effective a 
code of fair competition or an agreement under this title or otherwise 
to effectuate the policy of this title, and shall publicly so announce, 
no person shall, after a date fixed in such announcement, engage in or 
carry on onj business, in or affecting interstate or foreign commerce, 
specified in such announcement, unless he slriall have first obtained a 
license issued pursuant to such regulations as the President shall jpre- 
•967'=^ 



-76- 

scribe. The President may suspend or revoke anj" such license, after due 
notice end opportunit;;' for. herrin.3, for violntions of the terras or condi~ 
tions there,oi. Aitj order of the President suspending or revoking any 
such license shall be finj-il if in accordpjico with law. Any person who.,, 
without such a license or in violation of any condition thereof, carries 
on any such "business for rhich ;: license is so reo^uired, shall, upon con- 
viction thereof, he fined not more than ip500, or imprisoned not more than 
six months, cr "both, and each do.y such violrtion continues shall he deem- 
ed a separate offense. ITotv/ithstandin;;; the provir.ions of section 2 (c), 
this subsection shall cease to "be in effect at the e:cpiration of one year 
after the date of enactment of this Act or sooner if the President shall 
"by proclamation or the Congress shall "by joint resolution declare that 
the eraer^,-enc" reco"Tii:^ed hy section 1 has ended. 

SEC. 5. Ifnilc this title is in effect (or in the case of a license, 
while section 4 ( a) is in effect) and for sixty days thereafter, any code, 
agreement, or license approved, prescribed, or issued and in effect under 
this title, and any action complying with the provisions thereof talien 
during such period, shall be exempt from the provisions of the antitrust 
laws of the United States. 

Nothing in. this Act, and no re^julation thereunder, shall prevent an 
individual from pursuin;- the vocation of manual labor and selling or 
trading the products thereof; nor shall anything in this Act, or regula- 
tion thereunder, prevent anyone from marketing or trtiding the produce of 
his farm. 

Lipiitaoions Upoii Application Of Title 

SEC. D« (a) No trade or industrial association or groujj shall be 
eligible to receive the benefit of the provisions of this title until it 
files with the President a statement containing such information relat- 
ing to the activities of the association or group as the President shall 
by regulation prescribe. 

(b) The President is authorised to proscribe rules and regulations 
designed to insure that any org^nizotion availing itself of the benefits 
of this title shall be truly representative of the trade or industry 

or subdivision thereof represented by such organization. Any organiza- 
tion violating any such rule or regulation shall cease to be entitled to 
the benefits of this title. 

(c) Upon the request of the President, the Federal Trade Commission 
shall malce such investigations as may be necessary to enable the Presi- 
dent to carry out the provisions of this title, ajid for such purposes the 
Commission shall have all the powers vested in it with respect of investi- 
gations under the Federal Trade Commission Act, as amended. 

SEC. 7. (a) Every code of fair competition, agreement, and license 
approved, prescribed, or issued under this title shall contain the follow^ 
ing conditions: (l) Tnat employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employers 
of labor, or their agents, in the disignation of such representatives 
or in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; (2) that no 
employee and no one seeking employment shall be required as a condition 
of emplo^Tnent to Join any ccmpaoiy union or to refrain from joining, or- 
g£inizing, or assisting a labor organization of his ovm choosing; and' (<5) 

9675 



-77- 

that emplo^-ers shall comply with tne maxiiriTini hours of la^bor, minirnum rates 
of • pay, aiid other conditions of emplo;,7nent , approved or prescribed by the 
President. 

(b) The President shall, so far as practicable, afford every opportun- 
ity to employers and employees in any trade or industry or subdivision 
thereof vdth respect to which the conditions referred to in clauses _( l) 
and (2) of subsection (a) prevail, to establish by mutual agreement, the 
■standards ; s to the maximum, hours of labor, rainimium rates of pay, end 
such other conditions' of employment as may be necessary in such trade or 
industry or subdivision thereof to effectuate the policy of this title; 
and the s"'';--Lidards -established in such agreements, when approved by the 
President, shall have the same effect as a code of fair com.petition, ap- 
proved '^D'j the President under subsection, (a) of section 3. 

(c) Wiiere no such mutual a;'-:reement has been approved by the President 
he may invectirate the labor practices, policies, wages, hours of labor, 
and conditions of employment in such trade or industry or subdivision 
thereof; and upon the basis of such investigations, and after such hear- 
ings as the President finds advisable,. he is authorized to prescribe a 
limdted code of fair competition fixing such maximum hours of labor, 
minimum rates of pay, and other conditions of emplo^Tnent in the trade or 
industry or subdivision thereof . investigated as he finds to be necessary 
to effectuate the policy of this title, which shall have the same effect 
as a code of fair competition approved by the President under subsection 
(a) of section 3. The President may, differentiate according to exper- 
ience nnC shill of the employees affected and according to the locality 
of employment; but no attempt shall be made to introduce any classifica- 
tion according to the nature of the Y/ork involved which might tend to 
set a maximum as well as a minimum wage. 

(d) As used in this title-, the term "person" includes any individual, 
partnership, association, trust, or corporation; and the terms "inter- 
state and foreign commerce" and "interstate or foreign commerce" include, 
except where otherwise indicated, trade or commerce among the several 
States and vdth foreign nations, or between the District of Columbia or 
aiiy Territory of the United States and any State, Territory, or foreign 
nation, or between any insular possessions or other places under the 
jurisdiction of the United States, or betv/een any. such possession or 
place vxiC: any State or Territory of the United States or the District of 
Columbia or any lorei^;^! nation, or within the District of Columbia or any 
Territory or any insular possession or other place under the jurisdiction 
of the United States. 

Application Of Agricultural Adjustment Act 

SEC. 8, (a) This title shall not be construed to repeal or modify any 
of the provisions of title I of the Act entitled "An Act to relieve the 
existing national economic emergency by increasing agricultural purchas- 
ing power, to raise revenue for extraordinary expenses incurred by reason 
of such emergency, to provide emergency relief with respect to agricul- 
tural indebtedness, to provide for the orderly liquidation of joint-stock 
land banlis, and for other piu-poses" , approved I/Iay 12, 1933; and such 
title I of said Act approved May 12, 1933, may for all purposes be here- 
after referred to as the "Agricultural Adjustment Act," 

(b) The President may, in his discretion, in order to avoid conflicts 
in the adjiinistration of the Agricultural Ad.justment Act and this title, 
delegate my of his functions and powers under this title with respect 
to trades, industries, or subdivisions thereof v/hich are engaged in the 
handling of any agricultural commodity or product thereof, or of any 
9675 



-78- ^•^^^^• 

competir.,;; co/jiviouit;; or pi'o6.uct thereof, to the Secretary of Agriculture. 

Oil Regulation 

SEC. 0. (a) The President is further authorized to initiate "before the 
Interstate Corimerce Co'Tunission proceedings necessary to i^rescribe regu~ 
lations to control the operations of oil pipe lines and to fix reasonable, 
compensatory rates fot the transportation of petroleum and its products 
^y pips lines, and the Interstate Commerce Commission shall grant pre- 
ference t-^ the hearings nnd determination of such cases, 

(h) Tl:o President is authorized to institute proceedings to divorce 
from any holding company sjiy pipe-line company controlled by such hold- 
ing company which pipe-line company oi^ unfair practices or by excrbitcjit 
rates in bho transportation of petroleum or its products tends to create 
.? monopoly. 

(c) Tile President is authorized to prohibit the transportation in 
interstate ajid foreign commerce of petroleum and the products thereof 
produced or \;ithdrav.'n from storage in excess of the jfmount permitted to be 
producoc. or withrrav.'n from storrge by any State law or valid regulation or 
order prescribed thereunder, by any board, commission, officer, or other 
duly authorized agency of a State. Any violation of any order of the 
President issued under the provisions of this subsection shall be punish- 
able by fine of not to exceed .pi, 000, or imprisonment for not to exceed 
six months, or both, 

Rules cnc. Regulations 

SEC. 10. (a) The President is authorized to "prescribe such rules and 
re^gulations as ^may be necessary to carry out the purposes of this title, 
and fees for licenses pnd for filing codes of fair competition and agree- 
ments, a^id anj*" violation of f^jiy such rule or re^rulation shall be punish- 
able by fine of not to exceed .^5500, or imprisonment for not to exceed six 
months, or both, 

(b) Tlie Presicient nvy from, time to -tim.e cancel or modify any order, 
aporoval, license, rule, or reg\ilation irsued under this title; and each 
agreement, code of fair competition, or license approved, prescribed, or 
issued under this title shall contain an. express provision to that effect. 



- 79- ~ •■ 

APPEiraix II - BASIC com 

ADU1TISTKA.TIVE 0RD3?. ITO. X-61 
PLAIT FOR G0IiC?L3T10'J 0? C0D3 LiA-KIlIG 



3y virtue of authority vested in rae as Adiiiinistrator for Industrial 
•Recovery under Title I of the ITationai Industrial Recovery Act, and in 
order to provide a sirirole moans of giving a code forthwith to those 
industries remaining uncodified who desire a code and in order thereby 
to free URA. for administration of approved codes, it is herehy ordered 
that : 

1. This Plan is availa"ble to any industry not yet codified under 
said Act (with the exception of industries, including local service 
trades, for specific ca,use designated "by the Administrator for different 
treatment). Any such indii.stry may apply to the Administrator for codi- 
fication "by a.pplicp.tion oi the Rasic Code (RxhiLit "A", annexed) as the 
code for such indafltry. Tne^ hour and wage provisions to he included in 
said Basic Code, as to any applicant industry, shall be those already 
approved for the proper liindred industry,, aa determined "by the Admini- 
strator, after a.v.e consideration of representations of the applicant 
industry and oth'-^r relevant data. An uncodified industry, instead of 
applying for the Basic Code, may apply for consolidation and complete 
coverage hy the existing code for the proper kindred industry, subject 
to stay as to applicant industry of provisions then inconsistent with 
policy. 

2. If any sucn a-oplication is made "by a truly representative body 
of the industry and if there be no objection by any party, in ma.terial 
interest after ten (lO) days published notice to all concerned, such 
Code shall, vdthout further hearing, reference to Advisory Boards or 
other administrative action, become effective ten (lO) days after its 
approval "oy the Administrator, in industries em'-:)loying less than fifty 
thousand (50,000) persons, or by the president in all other industries, 

3. All uncodified industries which desire codification (excepting 
those specially designated as above) are requested so to apply for such 
Basic Code or for consolidation with codes for kindred industries. If 
after the approv8.1 of such application for any industry, it desires ad- 
ditional fair trade pra.ctice provisions or modifications as to such in- 
dustry of the Basic Code, or the code with v/hich consolidated, such in- 
dustry may apply therefor at any time and will be accorded a prompt 
hearing and determination vvith respect thereto. Any industry which de- 
sires to consolidate under the code of a kindred industry may -do so on 
approval cf the Administrator even after becoming subject to the Basic 
Code. 

4. It is not intended by this Plan -to force all remaining uncodi- 
fied industries under codes, but as to any such industry not yet codi- 
fied which does not apply for such Basic Code, or for consolidation as 
above, within thirty (30) days after the date hereof and in which the 
Administrator shs-ll determine tliat wages, hours, and conditions of labor 
constitute an abuse inimical to the public interest and contrary to the 

9675 



policy/ of said Act, the Adninistrator rill within forty (40) days after 
the date hereof provide for a hearing in accordance ■^ith Section o (d) 
of said Act to deternine \;hether a code coverin;?: hours of labor, rates 
of oay, and other 'rror-rinf conditions shall not "be -orescritied thereunder, 



HUGH Sj. JOHITSOi:. 
Administrator for Industrial Recovery, 



vTashington, D, G. 
JvCLl- 10, 1934 



ZASIC CODi: 
J^aly 10th, • 1934. 
-oOo- 

aHTICLE I. . . 

To effectuate the policies of Title I of the rational Industrial 
Recover^'' Act, the following provisions are estalDlished as a "basic Code 
of ?air Competition which shall g-oi-ern every inda.str3'- applying therefor 
in accci-dance with Administrative Order IJo, X~61, dated Julj'' 10, 1934, 

ARTICLE II 

Section I. I-iours. 

170 ei-iploj-ee shs.ll he peri-itted to work in excess of hours 

in any one week, e:ccept that for weeks in amy one calendar 

3''ear, sjoy enoloyee nay he permitted to work not more than hours 

per week. All hours in e::cess of per day or per week sliall 

be paid for at not less than one and one-half (l-l/s) times the eniployee's 
regtilar rate. 

Section 2, Exce-ptions. 

7xie provisions of Section I shall not apply to enplo3'-ees engaged in 
emergency r.iaintenance or emergency repair work involving "brealcdown or the 
protection of life or pro-oerty, nor to persons emplo^/^ed in a, managerial 
or executive capacity who earn regularly Thirty-five Dollars ($-35.00) per 
week or more, nor to any other class of employees which the Administrator 
shall find uroon application of true representatives of the trade or in- 
dustry" should he subjected to aji exemption or modification in accordance 
with iT.R.A, policy; provided, however, tha.t employees engaged in such 

9675 



-61- 

emer.c^enc^'' m^'Antenance and enerc:enc7 re-oair work shall "be paid at one and 
one-half ( 1-1/2) times their normal rate for all hours worked in excees 
of fort^' (40) hours oer week. 

Section 5. MiniTnun ¥a.g:es . 

ITo eiroloyee shall "be oaid in any pay period less than at the rate 
of per vreelz for hours of lahor, except in 



in which rec:-;ion no ernplo:^^ee shall he paid in any pay period less ths-n at 
the rate of per week for ^ hours of lahor. 

Section 4. TJa.^es in_ General. 

All wa,5es shall he adjusted so as to maintain a differential at least 
as (:vee.t in amo\mt as Vnat existing on June 15, 1C33, between wages for 
such employment 3-r_:'. the ninirv?.. In no case shall there he any reduc- 
tion in hourly rates; nor in weekly earnings for any reduction in hours 
of less than thirty T)er cent. 



' ' ARTICLS III. 
Section I. Child Labor. 



xTo person -jr-der sixteen years of age shall be employed in the in- 
dustry'" in an;^ capacity, L'o person under eighteen years of age shall be 
emplo;red at operations or occupations which are hazardous in nature or 
dangerous to health. The Code Authority sha-11 submit to the Administra- 
tor for a;oproTal before October 1, 1934, a list of such operations or 
occupations. In any State an employer shall be deemed to have complied 
with this provision as to age if he shall have on file a valid certifi- 
cate or permit duJ."'- signed by the authority in such State empowered to 
issue employment or age certificates or oermits, showing that the em- 
ployee is of the required age. 

Section 2. A'opr entices. 

Tlie hours and wages of regularly indentiired apprentices in skilled 
trades or occupations of the Indus tr;/" may depart from the standards here- 
inabove prescribed; provided that the terms of emplo'^nnent and the course 
on instruction of such apprentices shall conform to standards uniform 
throughout the trade or industry and approved by the Administrator, 

S ection 5. H andica"DT)ed Persons. 

A person whose earning capacity is limited because of age, ph^ysical 
or mental handicap, or other infir:n.ity, may be employed on light work at 
a wage below the minimum, established by this Code, if the eiiiployer ob- 
tains from the St£„te authority designated by the United States Department 
of Labor, a certificate authorizing such person's employment at such 
wages and for such hours as shall be stated in the certificate. Such 
authority/' shall be guided by the instructions of the United States De- 
partment of Labor in issuing certificates to such persons. Each em- 
ployer shall file monthly with the Code Authority a list of all such 

9675 



-82- 

percoiiG e:.r-Dlo""ed "b"- him, shovrin,'^ the wages "laid to, and the maxim-um hoiirs 
of v.'orl: for siich en-olo^ee. 

Section 4. Sr .fet^^ gnd Health . 

Hver;,' e:.rolo:"er snail nalce reasonable provicions for the safety and 
health of his employees at the place and during the hours of their em- 
plo:7:-3iit. Standards for safety and health shall "be sutinitted "by the Code 
Autlioritp to the Adniinistra-tor for aoprovel vrithin six months after the 
effective date of this Code, Tlie standards approved shall thereafter "be 
a part of this Code e.Rc. enforceahle as such. 

Section 5, "'-eo-^lred Laoor Cla uses, 

Tlie provisions of Section 7 (a) of said Act are herehy incorporated 
heroin "by this reference and shall be coLTolied with. 



AI'.TICLS IV. 

Adiin i ;: tro t ion. 

Tliis Code shall he administered hy the General IIRA Code Authority 
which shall oe selected -oursua-it to, have the powers specified in and 
function in accordance with Adrainistrative Order X-62, da.ted July 10, 
1934; provided, however, that, on ap^oroval hy the Administrator, any in- 
dustr;^ so desiring may elect its own Code Authority to have powers and 
to function in the manner prescribed for the General IIEA Code Authority 
and under such rules and regrlations as the Administrator may prescribe, 

AETICLZ Y. 
Trgode Practices. 



(a) It shall be an unfair method of competition for any member of 
P-ny trade or industr3'- subject liereto to violate any rule of fair trade 
practice for such trade or industry even if not herein contained when 
approved 'oy the Administrator, or, in the case of trade practice provi- 
sions for trades or industries imder the jurisdiction of the Secretary 
of Agricult'ore when approved b^"- such Secretary, on application concurred 
in b;?- seventy-five (75) per cent of the members of such trade or industry, 

(b) Prices, rebates, discounts, commissions and conditions of sale 
shall be filed as prescribed in Administrative Order ITo. X-62, dated 
July 10, 1954, and it shall be an unfa.ir method of competition to violate 
or fail to comply with the terms of that Order, 

ARTICLE VI. 



Section 10 (b) of said Act is hereby incorporated herein by re- 
ference and this Code is e::oressly made subject thereto. 



9675 



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APPEltDIX III 
ADMINISTRATIVE ORDER ilO, X-62 

SUPPLEIvIEIITIlIG ADrilll STRATI VE ORDER WO. X-61, DATED JULY 10,1334, 
AiTD THE BASIC CODE AInTITEXED THERETO. 

;* :)e ******** * 

By virtue of the authority vested' in ne as Administrator for In- 
dustrial Recovery under Title I, of the National Industrial Recovery Act 
and to supplement Administrative Order No, X-61, dated July 10, 1934, and 
the Basic Code annexed thereto, it is hereby ordered that: 

A.' General NRA Code Authority . 

1, The General NRA Code Authority, provided for in. Article IV 
of said Basic Code, shall be appointed "by the Administrator 
and shall serve without expense to the Industries subject to 
such Code, 

2, Such Code Authority shall have the follOT7ing powers and duties; 

(a) To insure the e::ecution of the provisions of the Code 
and to provide for the compliance of the trade/in- 
dustry, with the provisions of ■ the Act, 

(b) To adopt by-laws and rules and regulations for its 
' ., procedure, 

(c) To obtain from members of the trade /industry such in- 
'formation and reports as are required for the admin- 
istration of the Code., In addition to information 
required to be submitted to the Code Authority, 
members of the , trade/industry subject to said Basic 
Code shall furnish such statistical information 

as the Administrator .may deem necessarj?- for the 
purposes recited in Section 3(a) of the Act to 
such Federal and State agencies as he may des- 
* ignate; provided that nothing in the Code shall 
relieve any member of the trade/ industry of any 
existing obliga,tions to furnish reports to any 
Government agency. No individual report shall be 
disclosed to imj other member of the trade/in- 
dustry or any other party except to such other 
Government agencies as may be directed by the 
Administrator, 

(d) The General rIRA Code Authority shall submit to the 
Administrator within 90 days after the aporoval 

of this Basic Code a list of industries covered 
by the Basic Code, in which vjork on any part of . ■ 
the product is performed in the home and/or work 
is contracted oat. The General ITRA Code Authority 
may also submit a list of special problems affect- 
ing particular industries operating under the Basic 

9675 



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Code, and recoraiaendations pertaining thereto, 

(e) -To made recomnendations to the Administrator for 
the coordination of the administration of the Code 
and such other codes, if ar^ , as may "be related 

to or affect members of the trade/industry, 

(f) To recommend to the Administrator any action or 
measure deemed advisable, including f^jj-ther Tair 
trade practice provisions, to govern members of the 
trade /industry in their relations with each other 
or with other trades/industries; measures for in- 
dustrial planning, a.nd stabilization of employ- 
ment, , 

3. Open Price Filing, 

As orovided for in Section (b) of Article V of said Basic Code, 
prices, rebates, discounts, commissions, and conditions of sa.le 
shall be filed in accordance with the following provisions: 

1, ilach member of the trade /industry shall file with a confiden- 
tial and disinterested agent of the code authority or, if 
none, then with such an agent designated by the Administrator, 
identified lists of all of his prices, discounts, rebates, 
allowances, pjnd all other terms or conditions of snle, here- 
inafter in this article referred to as "price terms", which 
lists shall completely and accurately conform to and represent 
the individual pricing practices of said r.ember. Such lists 
shall contain, the price terms for all such standard products 
of the industry as are sold or offered for sale by said member 
rnd for such non-standard products of said member as shall be 
designated by the code authority. Said nrice terras shall in 
the first instance be filed within 30 do;;'S after the date of 
sloitoyfOl of this provision. Price terms and revised price 
terms shall become effective immediately upon receipt thereof 
by sa,id agent. Immediately upon receipt thereof, said agent 
shall by tele:^raph or other eq-iially prompt neans notify said 
member of the tine of such receipt. Such lists and revisions, 
together with the effective time thereof, shall upon receipt 
be im-iediately aid simultaneously distributed to all members 
of the industry and to all of their customers who have applied 
therefor and have offered to defr-^y the cost actually incurred 
by the code a.uthority in the preparation and distribution there- 
of and be available for inspection ^oy any of their customers 
--.t the office of such agent. Said lists or revisions or any 
part thereof Lhall not be made available to any person until 
releaspd to all members of the industry and their customers, 
as aforesaid; provided, that ;orices filed in the first instance 
shall not be released until the e:>rpiration of the aforesaid 30 
^..y leriod after the approval of this code. The code authority 
shall maintain a permanent file of all price terms filed as 
heroin provided, -aid shall not destroy any part of such records 
except upon written consent of the Administrator. Upon request 



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the code authority shall furnish to the administrator or any 
duly desi£;nated agent of the Administrator copies of any such 
lists or revisions of price terms, 

2, V.'hen any member of the trr-.de/ industry has filed any revision, 
such raeraher shall not file a higher price within forty-eight 
(48) hours, 

3, IJo raemher of the trade/ industry shall sell or offer to sell 
a-ny product, services of the trade/ industry, for which price 
terms have been filed pursuant to the provisions of this 
article, except in accordance with such price terms, 

4, Ho member of the industry shall enter into any agreement, 
understanding, combination or conspiracy to fix or maintain 
price terms, nor cause or attempt to cause p.ny member of the 
industry to change his price terms by the use of intimidation, 
coercion, or any other influence inconsistent with the main- 
tenance of the free and open market which it is the purpose 

of this Article to create, 

C. Costs and Price Cutting. 

1. The standards of fair competition for the trade/ industry with 
referer.ce to pricing practices are declared to be as follows! 

(a) I7ilfully destructive price cutting is an unfair method 
of competition and is forbidden. Any member of the 
trade/ industry or of any other trade/ industry or the 
customers of either nay at any tine complain to the 
Code Authority that any filed price constitutes un- 
fair conpetition as destructive price cutting, im- 
periling small enterprise or tending toward monopoly 
or the impairment of code wages and working condi- 
tions. The Code Authority shall within 5 dsys afford 
an opportunity to the member filing the price to 
answer such complaint and shall within 14 days make 

a ruling or adjustment thereon. If such ruling is 
not concurred in by either party to the complaint, 
all papers shall be referred to the Research and 
Planning Division of liriA. which shall render a report 
and recommendation thereon to the Administrator, 

(b) Fiien no declared emergency exists as to any given 
product, there is to be no fixed minimum basis for 
prices. It is intended that sound cost estimating 
methods should be used and that consideration should 
be given to costs in the determination of pricing 
policies, 

(c) '.Tiien an emergency exists as to any given product, 
sale below the sta,ted minimum price of such product, 
in violation of Section 2 hereof, is forbidden. 



!675 



2, EnevF.ency Provisions . 

(a) If the AcL-niiiistrator, aTter investigation shall at 
any time find "both (l) that .an emergency has arisen 
within the trade /industry adversely affecting 
snail enterprises or T7a:^es or laljor conditions," 
or tending tovzcrd monopoly or othe^^r acute con- 
ditions v/hich tend to defeat the purposes of the 
Act; and (2) that the detei"~ii nation- of the stated 
minimum price for a specified product within the 
trade /industry- for a limited period is necessary 
to mitigate the conditions constituting such 
emergency and to effectuate the purposes of the 
Act, the Code Authority may cause an i;apartial 
agency to investigate costs sui^ to reconnend to 
the Administrator a deterninatioji of the stated 
raininum price of the produ.ct ai'fected "by the 
emergency and thereupon the Administrator nay 
proceed to determine such stated minimum price, 

(h) TTiien the Adninistrator shall have determined such 
stated nininun price for a specified product for 
a stated period, which price shall "be reasonably 
calculated to mitigate the conditions of such 
emergency and to effectuate the purposes of the 
IJational Industrial Recovery Act, he shall pub- 
lish such price, Thereafter, during such stated 
period, no menher of the trade /industry shall 
sell such specified products at a net realized 
price "below said stated mirJ.mum price and any 
buch s.ale shall "be deemed destructive price 
cutting.. From time to tine, the Code Authority 
may recommend review or reconsideration or the 
Administrator nay cause any determinations here- 
"■juder to be reviewed or reconsidered and appro- 
priate action taken. 



I-TJC-H S^ JGH-TSOIT . 
Administrator for Iridustrial Recovery, 



Washington, D, C. 
July 10,1934. 

S675 



-87- 

iiPPElCDIX IV 
ADMI III STRATI VE CEDER 'TO. X-65. 

PRESCRIBIIIG RULES AliD REGULATIONS TO SUPPLEMENT ADMINISTRATIVE 
ORDER NO. X-61, DATED JULY 10, 1954, AND THE BASIC 
CODE ANNEXED THERETO, 

By virtue of authority vested in me as Administrator for Industrial 
Recovery under Title I of the National Industrial Recover^'- Act the follow- 
ing rules and regulations are hereby prescri'bed to supplement the above- 
mentioned Administrative Order and Code: 

1, The minimum rates of pay provided for in Article II of said 
Basic Code shall apply, irrespective of whether an employee 
is actually compensatud on a tim.e rate, piece-work, or other 
basis, 

2, Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male 
era-oloyees. 

3, No employer shall permit any employee to work for any time 
which, when totaled with that alveB^d^r performed for another 
employer or employers exceeds the maximum permitted herein, 

4, No employer shall reclassify employees or duties of occupa- 
tions performed or engage in any other subterfuge so as to 
defeat the purposes or provisions of the Act or of said Basic 
Code, 

5, No employer shall dismiss or demote, any employee for mai<:ing a 
complaint or giving evidence with respect to an alleged viola- 
tion of the provisions of any Code of Fair Competition, 

6, Code Authorities selected by industry in accordance with 
Article IV of said Ss.sic Code shall function at the expense 
of the industry in accord;ance with such further rules and 
regulations as the Administrator may prescribe, 

7, No provision hereof, of said Administrative Order No, X-61 
or of said Basic Code, shall supersede any State or Federal 
law which imposes on employers more stringent requirements 
as to age of employees, wages, hours of work, safety, health 
and sanitary conditions, insurance, fire protection or general 
working conditions, than are imposed thereby, 

8, No provision hereof, of said Adiuinistrative Order No, X-61, 
or of said Basic Code shall be so applied as to permit 
monopolistic practices, or to eliminate, oppress, or dis- 
criminate against small enterprises. 



Washington,D.C. HUGH Sj_ JOHNSON . 

July 10,1934 Administrator for Industrial Recovery, 

9675 



i 



-88- 



APPENDIX V 



National Recovery Administration 
Bulletin No. 7 



For The 
ADJUSTMENT OF COJ/IPLAINTS 



By 

state Directors and 
Code Authorities 



9675 



-89- 

AMEimiOTTS TO MA BULLETIN 110. 7 

Administrative Order iTo. X-14 

Ai^ENDlIENT OlIE 

(To "be inserted at Paf^e IS, Bulletin No. 7) 

Part Tuo, Section IV, "HandliniT^ of Complaints "by the State Director" 
is amended "by a,dding at the end thereof the. following: 

"F.' REFERENCE TO TIiZ DIS^I-RICT ATTORNEY BY THE STATE DIRECTOR 

If at any time the State Director is convinced that the facts 
relative to a complaint conclusively establish' a violation which the 
respondent shows no disposition to correct or adjust, the State Director 
may imnediately refer the entire record- in the case to the appropriate 
District Attorney of the United States for action instead of the National 
Compliance Director as provided in Paragraph D, 5 (p, 17 above). When- 
ever a case is so referred, under this paragraph, the State Director will 
inform the respondent of such reference and will imnediateljr transmit a 
complete transcript, in triplicate, of the entire record of the case to 
the Control Section of the Compliance Division of NRA. " 

AliENDIvENT TWO 
(To "be inserted at Page 32, Bulletin No. 7) 

Part Three, Section IV, paragraph C, "Handling of Accepted Com- 
plaints "by an Industrial Adjustment Agency" is amended "by adding at the 
end. thereof the foil owing j 

, "12.'REiEPJ;NCE TO TIS DISTRICT ATTORlffiY BY ADJUSTMENT AGENCY 
" AUTHORIZED TO HANDLE THE CCLEPLAIITT IN THE FIRST INSTANCE 

(a) If at any time the highest Adjustment Agency finds that 
lihe facts relative to a complaint conclusively establish a violation 
which the respondent shows no disposition to correct or adjust, the case 
ma3' be imnedia.tely referred to-the a"opropriate District Attorney of the 
United States through the State Director for the State in which the 
appropriate District Court of the United States is. located. 'Thenever a 
case is so referred under this paragraph the highest Adjustment Agency 
will inform the respondent of such reference and the State Director will 
imiediatelj'- transmit a complete transcript in triplicate of the entire 
record of the case to the Control Sectio?i of the Com"oliance Division of 
NRA-. 

" (b) Fnere a Code Authority has divisional, regional or local 
Industria.l Adjustment Agencies authorized by NRA, the Code Authority may 
provide that such divisional, regional or local Industrial Adjustment 
Agency'" shall have power to refer cases to the appropriate District At- 
torney, through the State Director, in accordance with the procedure 
outlined in the foregoing paragraph. " 



)675 



-90- 

Al-ElIDiaJlIT THREE 

(To be inserted at Pa^e 16, Bulletin Ho, 7) 

Part Tno, Section IV, Para.'^raph C, 3, "State Adjustment Board — 
i!\Lictions" is amended by adding: to the end thereof the follor^ing: 

"(e) In any case r/here the State Director has decided to refer 
a case cirectl;/ to the appropriate District Attorney of the United States 
(as provided in Part Tr;o, Section IV, Paragraph F, page 18), or rzhere he 
has been requested to so refer a case by an Industrial Adjustment Agency 
(au provided in Part Three, Section IV, paragraph C, 12, page 32), he 
Jiay submit the case to the Adjustment Board for its advice and recoramen** 
dations," 

Hugh S. Johnson, 

Adninistrator . 
April 5, 1934. 



ADLIIIIISTR/ITIVE OPtDER iJO. X-2S 

JU.IE1IDME1TT TO ITEA BULLETIN NO. 7 

AI-EinDI/EEITT POUR 

The practice of authorizing: Code Authorities and Industrial Adjust- 
ment A;'--^ncies to handle com-olaints " on reference " is hereby discontinued; 
no further Code Authorities or Industrial Adjustment Agencies rill be 
authorized to handle complaints "on reference" and beginning June 15, 
193'-1-, no further com-olaints rill be referred " on reference " to Code 
Authorities or Industrial Adjustment Agencies nor so authorized. 

The use of the term " authorized in the first instance " is discon- 
tinued and the term " off iciall?/ authorized " substituted. 

Code Authorities and Indust»fal Adjustment Agencies heretofore 
authorized to handle a particular tj'^oe of complaint " in the first instance. 
are hereby "off iciallj/.authorizjed" to handle such complaints. Code 
Authorities ana Industria.l Adjustment Agencies not so authorized should 
make application to be "officially authorized." The application should 
be made in accordance rith NPA Bulletin ITo. 7, Part Three, III, 

A Code Authority or Industrial Adjustment Agency rhich has not 
been ^officially authorized" to handle a particular type of complaint 
shall not represent that it is authorized to receive such complaints, end. 
complaints filed rith State ilElA Compliance Directors or other Agencies 
rill not be forrarded to it, provided, horever, that all Code Authorities 
are -permitted to handJ.e comiplaints filed rith them voluntarily by the 
com-plainant . 

If a complaint of a character vrhich a Code Authority'- or Industrial 
Adjustment A;'sency is "officially authorized" to handle is filed by a 

9675 



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complainr-nt uith NBA, either ■'.vith a State Director or in T7ashington, 
the conplaint \7ill "be forwarded to the officially authorized Code Author- 
ity or Inc.uc trial Adjustment Agency, unleso the complainant indicates 
that he purposely filed the complaint nith ITBA or that fact appears from 
the sut stance of the complaint. 

So much of Bulletin I'o, 7 as is inconsistent vrith this Amendment 
is superseded. Administrative Order X-12, dated iiarch 30, 1934, remains 
in full force. 

Hugh S. Johnson, 

Administrator . 

May 12, IS 34. 



9675 



92 

NATIONAL RECOVSHY ADl.lINISTaATION 
BULLETIN NO. 7 



JAITUARY 2.i, 1934 






PART ONE— int:ioduction 

I. Code administration Page 

A. Industry administers codes subject to tlie ultimate 

responsibility of NilA. 95 

3. Tv;o aspects tc Code administration — (l) Plgnning and 

progress; (3) Compliance 95 

C. Pundamsntal that Industry should effect laotii •- 95 

D. Enually fundainental that NRA v;ill supervise and act 

where Industry does not 96 

E. Industry organized through trade associations for 

"planning and progress" 96 

II. Code compli&nce 

A. Industry in general is not already organized for com- 
pliance 96 

3. Definitions 

1. Industrial Adjustment Agencies ■ — 96 

2. Labor complaints 97 

3. Trade practice complaints 97 

4. Labor disputes — 97 

C. l/iost Industries are organized to handle trade practice 

complaints 97 

D. Labor complaints present rmich more difficult problems 

and reouire a regional adjustment system 97 

E. N2A has a field adjustment system v/hich will fill the 

gaps in industrial self-government 97 

7. Complaints to be filed with the St^te Director until 
an Industry' s Industrial Adjustment Agencies nave 
been authorized to handle such complaints "in the 

first instance" 93 

J. Coordination of Industrial Adjustment .Ag:encies and 
NHA is provided for 

1. State Directors 98 

2. Convplaints handled 'o'-j Industrial Adjustment 

Ac^encies "on reference" 98 

3. CoiuOlaints Liandled ''oj Industrial Adjustment 

Agencies "in the first instance" 98 

4. Complaints adjusted jointly by lOrlA and Industrial 

Adjustment Agencies 93 

5. Eight to file complaints witn NPA. directly 99 

9675 



93 

Page 
II. NRA and tiie Code Aatlurities are adjustaient aigencies, 

not enforcement agencies 99 

J. The Department of Justice and t'.ie Federal Trade Oom- 
inission are the enforcein'-mt au,encies of the lovern- 

nient 99 

K. This MaJiual sets out rales for adja^tment 99 

1. All complaints mast be treated confidentially 99 

2. Final rulings on interpretations, exceptions, ex- 

em^;tions and modifications are to be made by iJRA, 

not by Code Authorities or by State Directors 100 

PART TI0~ADJU3T..lENT BY Ti.::: STATS DIRECT jHS OF TH3 
NATIONAL El.iSF.SSNCY COUNOIL OF 30iA?LAINTS OF NRA 
CODE V0ILATI0N3 

I. Staff for NR.i compliance work 101 

II. Receipt of complaints 

A. Form of complaints 101 

3. .There complaints should be filed 102 

C. Routing of complaints 102 

III. Complaints w-iich might have been filed with arothier agency 102 

A. Ccm.pl ai n ■'. -i involving labor disputes 102 

3. Complaints which might have been filei with an Indus- 
trial Adjustment Agency in the first instance 102 

IV. Handling of complaints '^oy t'he State Director 102 

A. Rejected complaints 

1. Complaint? based on misunderstanding 105 

2. Deficient complaintsT — 103 

3. Complaints indicating a. deficiency in a Code 103 

3. Accepted complaints 

1. Complaints which. Industrial Adjustment Agencies 

are authorised to handle on reference 103 

2. Complaints which are to be handled directly by 

the State Director 104 

C. State Aijustment 3oard 

1. General 105 

2. 0rga,ni2aticn — 105 

3. Functions 106 

D. Reference to tlie National Compliance Director by the 

State Director 106 

E. Action taken in ^Vashington 

1. Natir.nal Compliance Director 108 

2. National Compliance 3oard 103 

V. The use of Field Adjusters 

A. Ceneral 108 

3. T.Tpes of Adjusters 

i. NPA. employees 108 

2. Employees on the staff of cooperating agencies 109 

C. Technicue of field investigation 109 

9675 



94 

PAilT TaHia— ^JJSai/LilKT 3^ CODE JlUTTIuHITIjlS '^? GGIIPLAINTS 
^ N3A GODS VIOLATIONS 

Page 

I. Introduction 111 

II. Organization of Industrial Adjuctraent Agencies 

A. For trade practice complaints 111 

B. For labor complaints ■ 112 

C. For labor disputes 112 

D. Definitions 113 

III. Procedure to be follov/ed by a Code Authority to obtain 

authorization for its Industrial Adjustment Agencies to a,d- 
just trade practice complaints, labor complaints or labor 
disputes 

A. Authorization from NRA. is required 113 

B. Reports by the Administration Member of the Code Author- 

ity to NilA 113 

IV. A sugt^ested procedure to be followed by a Code Authority in 

the adjustment of complaints 

A. Form of complaints 114 

3. Receipt of complaints 

1. 'Tliere complaints should be filed 114 

2. So"urces of complaints 114 

3. Com;:jlaints improperly filed with an Indu?-trial Ad- 

justment Agency 114 

4. Acceptance or rejection of complaints 115 

C. handling Ji accepted compIa,ints by an Industrial Adjust- 

ment Agency 

1. All compla,ints must be treated confidentially 116 

2. Xotico to respondent that complaint has been filed — 116 

5. '(There respondent ad^nits violation 116 

4. 'Jnere respondent denies violation 116 

5. Field Adjuster' s report 117 

6. Right to appear in person 117 

7. Arbitration 117 

8. Report of adjustment or return to State Director of 

complaint ^ifindlel on reference 117 

9. Trail Siiiittal of a case to IJRA by Adjustment Agency 

authorized to handle the complaint in the first 

instance 118 

10. Labor disputes 119 

11. Recommendations 119 

D. Complaints referred to an Industrial Adjustment Agenc?/ by 

the National Compliance Director 120 

E. G-eneral 

1. Relati'-n of the highest Industrial Adjustment Agency 

to Divisional, Regional and Local Agencies 120 

2. Suits by Code Authorities 120 



9675 



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PART ONE— INTRODUCTION 

It is the purpose of this Manual to indicate the method by which 
■complaints of violations of NRA Codes of Fair Competition will be 
handled by NRA and by Code Authorities. This Introduction sets 
out the fundamental relationship between Industry and NRA in 
Code Administration with particular emphasis on that relationship 
as it bears on the problems of adjusting complaints of violations of 
NRA Codes. 

I. CODE ADMINISTRATION 

A. INDUSTRY ADMINISTERS CODES SUBJECT TO THE ULTIMATE 
RESPONSIBILITY OF NRA 

After a Code has been approved, there remains the prob- 
lem of Code administration. The responsibihty for insuring that 
Codes are administered and that the public is protected Ues with 
the Administrator; but the aim of NRA is to give to Industry, 
through its Code Authorities, the widest possible range of self- 
government, subject to the ultimate responsibility of the Adminis- 
trator. Consequently, practically all Codes provide that the Code 
Authority thereof is to administer the Code. 

B. TWO ASPECTS TO CODE ADMINISTBATION— (1) PLANNING 
AND PROGRESS; (2) COMPLIANCE 

There are two aspects to Code Administration: (1) Planning 
and Progress and (2) Compliance. The first aspect includes such 
functions as economic planning and research for the Industry, 
reports and recommendations on conditions in the Industry, collec- 
tion of statistical data, preparation of cost accounting methods, 
etc. The second aspect includes: (a) The instruction and educa- 
tion of those subject to the Code as to their responsibilities there- 
under so as to anticipate and avoid complaints of noncompUance. 

(b) The adjustment of complaints of noncompliance by educa- 
tion, findings of facts, and the pressure of opinion within the Industry. 

(c) The adjustment of complaints by conciliation, mediation and 
arbitration, (d) The rendition of reports to the enforcement 
agencies of government in those cases where all other means have 
failed. Such reports should be based upon adequate findings of 
fact. 

C. FUNDAMENTAL THAT INDUSTRY SHOULD EFFECT BOTH 

It is fimdamental, within both the letter and intent of NIRA 
(the National Industrial Recovery Act), that as much as possible of 
both aspects of Code administration be effected by Industry itself. 
This shoidd be done through the Code Authority (specifically provided 
for in the Code). 



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-96- 



D. EQUALLY FUNDAMENTAL THAT NRA WILL SUPERVISE AND 
ACT WHERE INDUSTRY DOES NOT 

It is equally fundamental, within both the letter and intent ol 
NIRA, that the ultimate responsibility for cificicnt Code administra- 
tion lies with NRA, which will supervise Code administration by 
Code Authorities, To carry out this responsibihty most Codes 
provide for one or more Administration Members to sit on the Code 
Authority without vote, but with a veto on all acts of the Code 
Authoiity in Code administration (subject to review by NRA). In 
addition, NRA will directly administer the Code itself wherever an 
Industry is unable to administer it or fails to administer it, or where 
there are certain functions of Code administration which by their 
nature government should perform directly. 

E. INDUSTRY ORGANIZED THROUGH TRADE ASSOCIATIONS FOR 

"PLANNING AND PROGRESS " 

In an Industry sufficiently organized to have agreed upon a 
Code of Fair Competition, there usually will be no need for Govern- 
ment administration in the "planning and progress" field. These 
functions Industry is already performing for itself through its trade 
associations. A trade association may be a Code Authority, or may 
be used by a Code Authority, as provided in the Code. It is the policy 
of NRA to build up and strengthen trade associations tluoughout all 
Commerce and Industry so that they may perform all Code adminis- 
trative functions. A Trade Association Division has been established 
in NRA to carry out this policy and to advise and assist Industry in 
the performance of these functions. 

II. CODE COMPLIANCE 

A. INDUSTRY IN GENERAL IS NOT ALREADY ORGANIZED FOR 
COMPLIANCE 

The field of administration for compliance is an entirely new 
one. No Industries were heretofore organized with this function in 
view. Until an Industry is organized to perform this function NRA 
will have to perform it, but it is the policy to pass this function on to 
all Industries as rai)idly as they are ready to receive it. An Industry 
may not undertake administration for compliance until it has received 
an express authorization to this effect from NRA. 

B. DEFINITIONS 

1. Industrial Adjustment Agencies 

The term "Industrial Adjustment Agency" wherever 
used in tliis Manual refers to any Agency of an Industry for obtaining 
compliance with its Code. The Code Authoritv itself will sometimes 
be the only Industrial Adjustment Agency for the Industry. More 
often, and preferably, Complaints Committees will be established by 
the Code Authority and they mil in turn establish Adjustment 
Agencies for divisions of the Industry (Divisional Industrial Adjust- 
ment Agencies), or for territorial regions (Regional or Local Industrial 
Adjustment Agencies). In some cases Industrial Adjustment 
Agencies may be set up by an Industry in addition to its Code 
Authority. 

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2. Labor Complaints 

The term "labor complaint" wherever used in this 
Manual refers to a comjjlaint alleging a violation of the labor pro- 
visions of a Code. 

3. Trade Practice Complaints 

The term "trade practice complaint" wherever used in 
this Manual refers to a complaint alleging a violation of any provision 
of a Code other than the labor provLsions. 

4. Labor Disputes 

The term "labor dispute" wherever used in this Manual 
refers to a situation where a strike or lockout exists or is threatened — 
or to a complaint wliich because it primarily involves Section TCa) 
of NIRA may lead to a labor dispute. 

C. MOST INDUSTRIES ARE ORGANIZED TO HANDLE TRADE 
PRACTICE COMPLAINTS 

As soon as a Code Authority is set up and ready to function 
it will usually be well enough organized to adjust most complaints of 
violations of the tra/le practice provisions of the Code. Such com- 
plaints involve the rights of one employer against another employer 
within the Industry. Trade associations and other existing agencies 
of industrial self-government are well adapted to handle this type of 
complaint. 

D. LABOR COMPLAINTS PRESENT MUCH MORE DIFFICULT 
PROBLEMS AND REQUIRE A REGIONAL ADJUSTMENT SYSTEM 

The function of securing compliance with the labor provisions 
of Codes presents a much more difficult problem of organization and 
administration. Labor complaints, by their very nature, require a 
regional system of fact-finding and adjustment agencies. In order to 
protect the interests and rights of an emplovee under a Code, there 
must be agencies convenient in location and functioning so as to pro- 
tect the interests of the employee. Very few Industries are organized 
at tins time along lines suitable to adjustment and fact-finding in this 
type of case. Complaints of violations of labor provisions should 
not be referred to Industrial Adjustment Agencies unless the interests 
of the employee are adequately protected. (See Part Three, II, B, 
page 24.) 

E. NRA HAS A FIELD ADJUSTMENT SYSTEM WHICH WILL FILL 
THE GAPS IN INDUSTRIAL SELF-GOVERNMENT 

The Government has provided comphance agencies in each 
of the forty-eight States under the direction of the State Directors 
of the National Emergency Council. 

As the volume of complaints increases it iuav become necessary 
in many cases to provide for local governmental adjustment agencies, 
which \^ill report up through the State Directors. This governmental 
regional organization is a part of the Comphance Division of NRA 
under the direction of the National Compliance Director in Wasliing- 
ton. It will fill the gaps in industrial self-government. To the extent 
required, it will act for an Industry while the Industry- is organizing to 

9675 



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handle compliance problems for itself; or where an Industry in a cer- 
tain territory has no Industrial Adjustment Agencies; or where an 
Industry, though organized to handle trade practice complaints, has 
no machinery to handle labor complaints; or where the Industry fails 
to carry through in its efforts to adjust a complaint; or where for any 
other reason it is necessary for the governmental rather than the 
industrial system to act. 

F. COMPLAINTS TO BE FILED WITH THE STATE DIRECTOR 
UNTIL AN INDUSTRY'S INDUSTRIAL ADJUSTMENT AGENCIES 
HAVE BEEN AUTHORIZED TO HANDLE SUCH COMPLAINTS 
•♦/iV THE FIRST INSTANCE" 

Until an Industry has an Industrial Adjustment Agency 
authorized to handle a particular type of complaint "in the first 
instance" (see Paragraph G, 3, below) all complaints of that type 
should be filed by the complainant with the State Director. 

G. COORDINATION OF INDUSTRIAL ADJUSTMENT AGENCIES 
AND NRA IS PROVIDED FOR 

1. State Directors 

The Compliance Division will keep the State Directors 
constantly informed as to which Industrial Adjustment Agencies are 
to handle particular types of complaints in particular territories, so 
that the State Directors may cooperate with them. 

2. Complaints Handled by Industrial Adjustment Agencies 
" On Reference" 

State Directors may be instructed to refer all complaints 
of a certain tj'pe to an Industrial Adjustment Agency on reference. 
This means that all complaints of this type filed with a State Director 
will be referred to an Adjustment Agency of the Industry (except 
where to do so would be subversive of the interests of an interested 
party or of the public) with instructions to report back ^\4thin a 
specified time to the State Director as to the progress made in hand- 
Img the case. 

3. Complaints Handled by Industrial Adjustment Agencies 
*' In the First Instance" 

An Industrial Adjustment Agency may be authorized to- 
receive complaints in the first instance and the State Directors will 
be instructed accordingly by NRA. Publicity will be given to such 
instructions so that all interested parties may know that one should 
complain directly to the Industrial Adjustment Agency. Thereafter, 
all such complaints 'will be adjusted within the Industry' and only 
such complaints as the industrv fails to adjust will be handled by 
NRA. 

4. Complaints Adjusted Jointly by NRA and Industrial 
Adjustment Agencies 

^ATien an industry is completely organized to adjust all 
complaints, it may still be advantageous for it to call upon NRA to 
supplement its functioning. Thus, the preliminary investigation 
of some complaints may be done at the request of an Industrial. 

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Adjustment Agency by a regional governmental agency and the 
facts reported to the Industrial Agency. This again illustrates the 
fundamental theory underljdng NIRA of industrial self-discipline 
with governmental partnership. 

5. Right to File Complaints with NRA Directly 

Even where an Industrial Adjustment Agency has been 
authorized to handle complaints in the first instance or on rejerence a 
complainxint always has the right to file his complaint with NRA either 
in Washington or through the State Director in order to protect his or 
the public interest. 

H. NRA AND THE CODE AUTHORITIES ARE ADJUSTMENT 
AGENCIES, NOT ENFORCEMENT AGENCIES 

The system outlined by this Manual is designed to insure 
the speedy elimination, by adjustment, of such noncompliance as is 
due to misunderstanding, and the prompt prosecution of all cases of 
wilful noncompliance. Through the various Industrial Adjustment 
Agencies and the State Directors, all persons against whom complaints 
have been lodged will be given ample opportunity to demonstrate 
their desire to cooperate and to make restitution for any violation 
due to misunderstanding or ignorance. But cases of wilful violation 
will always be forwarded promptly to Washington for reference to 
the enjorcement agencies of the Government. 

J. THE DEPARTMENT OF JUSTICE AND THE FEDERAL TRADE 
COMMISSION ARE THE ENFORCEMENT AGENCIES OF THE 
GOVERNMENT 

Ultimately, all unadjusted complaints reported up through 
an Industry by Industrial Adjustment Agencies will be referred to 
the Compliance Division of NRA in Washington, as will all unadjusted 
complaints reported up by the State Directors. If the National 
Compliance Director is unable to effect an adjustment, such complaints 
will be referred to the National Compliance Board. If it is unable 
to effect compliance it will turn the case over to the appropriate 
enforcement agency of the Federal Government — either the Depart- 
ment of Justice or the Federal Trade Commission. These will invoke 
the sanctions provided by law or take other action within their powers. 

K. THIS MANUAL SETS OUT RULES FOR ADJUSTMENT 

In the adjustment of complaints either by Industrial Adjust- 
ment Agencies or by State Directors, there are certain cardinal 
principles which must be followed. The Regulations set out in Parts 
Two and Three of tliis Manual embody these principles. However, 
there are two rules which are so important as to be deserving of 
particular mention here. These are: 

1. Ail Complaints Must be Treated Confidentially 

(a) If the name of the complainant is revealed it may 
mean the loss of his job. Conversely — the mere revelation of the fact 
that a complaint has been filed against an employer may arouse 
adverse public opinion which might be disastrous to his business. 
Therefore it is important to keep the names of the parties confidential. 

94GS9 ' 1327 34 3 

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(b) If it is necessary to use the name of the complainant in 
order to eflFect a satisfactory adjustment and the complainant has not 
already given permission to use his name, the complainant's permis- 
sion to do so should be requested. The mere fact that the respondent 
demands the name of the complainant does not, in itself, make it 
necessary to reveal the complainant's name in order to adjust a case. 
In all cases where the complainant states that he does not wish his name 
to he revealed his wishes must be respected. 

2, Final Rulings on Interpretations, Exceptions, Exemptions 
and Modifications are to be Made by the National Recov- 
ery Administration, not by Code Authorities or by 
State Directors 

(a) Definitions 
(i) Interpretations 

This term includes all rulings on the meaning of 
the language of a Code where the intent of that language is in doubt, 
i.e., where a knowledge of the surrounding circumstances and of the 
general policies of NRA on the part of the person or body making tlie 
ruling fails to remove the necessity for a decision on which reasonable 
men, equally well informed, might differ. Where no decision is 
required on which reasonable men, equally well informed, might differ, 
the ruling is not an interpretation but merely an "explanation." 

(ii) Exceptions and exemptions 

These terms include all rulings whereby an indi- 
vidual, group or class is released from the full operation of a provision 
of a Code. 

(iii) Modifications 

This term includes all rulings whereby a Code is 
amended by adding a provision thereto or changing or omitting any 
provision thereof. 

(b) Final Rulings 

Industrial Adjustment Agencies and State Direc- 
tors are encouraged to disseminate authoritative information on and 
explanations of Codes; but the promulgation of a final ruling on any 
of the above matters has the same effect as the promulgation of an 
approved Code and therefore it must be given the same balanced con- 
sideration by the Industry and NRA which was given to the promul- 
gation of the Code. Therefore no ruUngs on these matters may be 
made except by NRA in Washington after receiving the recom- 
mendations of the Code Authority. 



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PART TWO.— ADJUSTMENT BY THE STATE DIREC- 
TORS OF THE NATIONAL EMERGENCY COUNCIL 
OF COMPLAINTS OF NRA CODE VIOLATIONS 

Part Two of this Manual is confined to Regulations outlining the 
manner in which complaints alleging violations of NRA Codes of 
Fair Competition will be handled by the State Directors of the 
National Emergency Council. These State Directors are charged 
with the duty of adjusting, whenever possible, all Code violations 
not adjusted by Industry and to that end, under these Regulations, 
will do everything within their power to secure compliance through 
education and explanation. 

The State Directors are not enforcement officers. The enforcement 
agencies of the Government are the Federal Trade Commission and 
the Department of Justice. 

L STAFF FOR NRA COMPLIANCE WORK 

In addition to an adequate clerical staff each State Director will 
be provided with the following personnel for NRA compliance work: 

(a) A Labor Compliance Officer. 

(b) An Office Manager. 

(c) A Legal Adviser (when necessary). 

Although only a skeleton organization will be provided at first, it 
will be expanded by NRA upon the recommendation of the State 
Director as the volume of work increases. For example, when the 
volume of trade practice complaints warrants, a Trade Practice 
Compliance Officer will be appointed. The Office Manager will serve 
as the Trade Practice Compliance Officer until the volume of such 
cases warrants an additional appointment. 

WTien the volume of field work requires, enough Field Adjusters 
will be appointed to handle all complaints promptly. Until then, 
the Labor Compliance Officer and the Trade Practice Compliance 
Officer may act as their own adj usters. The Office Manager and the 
Legal Adviser may also act in this capacity. 

The State Director is responsible for all action taken by his staff 
under these Regulations and may make such office rules as he deems 
desirable for the supervision of the activities of his staff. 

II. RECEIPT OF COMPLAINTS 

A. FORM OF COMPLAINTS 

Complaints of Code violations will be in writing, preferably 
on the NRA Complaint Form, copies of which may be obtained at 
all Post Offices, except fourth class. Anonymous complaints will be 
acted upon at the discretion of the State Director. 

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B. WHERE COMPLAINTS SHOULD BE FILED 

Complaints to be filed vvith the State Director should be 
sent to the office (or branch office) of the State Director for the terri- 
tory in which is located the establishment or the person against whom 
the complaint is registered (hereinafter called the "respondent")- 

C. ROUTING OF COMPLAINTS 

Complaints will be routed by the mail clerk to the Labor 
Comphance Officer or the Trade Practice CompUance Officer, depend- 
ing upon whether they are labor or trade practice complaints. A 
competitor maldng a labor complaint against an employer may elect 
to have such a complaint treated as a trade practice complaint. In 
that case, if there is an appropriate Industrial Adjustment Agency 
authorized to handle trade practice complaints the complaint will be 
referred to that Agency. 

m. COMPLAINTS WHICH MIGHT HAVE BEEN FILED WITH 
ANOTHER AGENCY 

A. COMPLAINTS INVOLVING LABOR DISPUTES 

Complaints which involve a situation where a strike or lockout 
exists or is threatened and complaints which, because they primarily 
involve Section 7(a) of NIRA, may lead to labor disputes will be 
forwarded directly to the appropriate Industrial Adjustment Agency 
or, if none is authorized to handle labor disputes, to the appropriate 
Regional Labor Board of the National Labor Board. \Miere a com- 
plaint is referred to a Regional Labor Board a brief report of such ref- 
erence will be made to the National Labor Board and the complainant 
will be informed that the complaint has been so referred. If the 
alleged violation of Section 7(a) is merely incidental to another type 
of complaint, the matter will be handled as a labor complaint, not as 
a labor dispute. 

B. COMPLAINTS WHICH MIGHT HAVE BEEN FILED WITH AN 
INDUSTRIAL ADJUSTMENT AGENCY IN THE FIRST INSTANCE 

NRA will periodically inform the State Directors as to which 
Industrial Adjustment Agencies have been authorized to receive par- 
ticular types of complaints in the first instance directly from the 
complainant. These complaints will be fonvarded to the appropriate 
authorized Industrial Adjustment Agency, without any request for a 
Progress Report, unless the complainant indicates that he purposely 
filed the complaint with the State Director or that fact appears from 
:he substance of the complaint — e.g., a complaint that the Code 
Authority is dominated by hostile or monopolistic interests — in which 
case the complaint was properly filed with the State Director. When- 
ever a complaint is transmitted to an Industrial Adjustment Agency 
the complainant will be so notified. 

IV. HANDLING OF COMPLAINTS BY THE STATE DIRECTOR 

All complaints which on their face appear to have been properly 
filed with the State Director will be examined for sufficiency. All 
doubtful complaints will be referred to the Legal Adviser for an 

9675 



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opinion as to their legal sufficiency. If the Legal Adviser is in doubt 
as to the legal sufficiency of a complaint, he should request, through 
the State Director, a ruling from NRA in Washington. 

A. REJECTED COMPLAINTS 

1. Complaints Based on Misunderstanding 

A complaint will be rejected if it is obviously crank, or 
where, even if all the facts as stated therein are true, those facts do 
not constitute a violation of a Code. In the latter case, the complaint 
will be acknowledged and returned to the complainant with an 
explanation as to why it has been rejected. 

2. Deficient Complaints 

If it appears from the complaint that any provision of a 
Code may have been violated, but the complaint does not clearly 
state sufficient facts to establish a violation, the complainant will be 
advised wherein he failed to set forth a violation and will be requested 
to furnish additional information. 

3. Complaints indicating a Deficiency in a Code 

In some cases a complaint may indicate that conditions 
are permitted by a Code which violate the spirit and intent of NIRA 
or of the Code and yet do not constitute a technical violation of the 
Code because some provision of the Code is loosely drawn. In such 
a case, an explanatory letter will be sent to the complainant and the 
respondent and a report will be made to the National Compliance 
Director. 

B. ACCEPTED COMPLAINTS 

If a complaint states facts which, if true, constitute a 
violation of a Code, the complaint will be accepted. Accepted com- 
plaints fall into two classes and will be handled as follows: 

1. Complaints which Industrial Adjustment Agencies are 
Authorized to Handle on Reference 

(a) Digests (fully setting forth the facts of the com- 
plaint) or copies will be made in triplicate of all such complamts. 

(b) One copy of the digest or of the complaint will be 
referred to the appropriate Industrial Adjustment Agency. A case 
so referred will be accompanied by a letter requesting a Progress 
Report as soon as possible, but in no event later than two weeks 
from the date of reference. 

(c) A notice will be sent to the complainant stating that 
the complaint has been so referred and stating the name and address 
of the Adjustment Agency. 

(d) If no report is received ^vithln the time specified the 
appropriate Compliance Officer will write the Agency to which the 
complaint was referred and request that a Progress Report be made 
by return mail. If there is no satisfactory answer to this inquiry by 

9675 



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return mail, the Compliance Officer will report this fact to the State 
Director who will advise the Agency that unless immediate word is 
received he wdll proceed to adjust the complaint directly on the assump- 
tion that the Agency has been unable to do so. The State Director 
will allow sufficient time to elapse to receive an answer and if no 
satisfactory answer is forthcoming within that time he will then instruct 
the Compliance Officer to proceed in the manner outlined below for 
adjusting complaints directly. 

(e) If the Agency reports that the complaint has been 
adjusted, the complaint will be filed as adjusted and the complainant 
will be so advised. 

(f) If the Agency reports that it is unable to adjust the 
complaint the State Director will proceed in the manner outlined be- 
low for adjusting complaints directly. In tliis case, however, all 
correspondence, interviews and findings of fact made by the Agency 
may be availed of as part of the record. 

(g) The State Director will keep a record of all com- 
plaints sent to Industrial Adjustment Agencies on reference and when he 
believes that any such Agency is qualified to handle a particular type 
of complaint in the first instance he will make such a recommendation 
to the National Compliance Director. 

2. Complaints which are to be Handled Directly by the 
State Director 

(a) In every case where adjustment is undertaken by 
the State Director the first step will be to inform the respondent of 
the nature of the complaint, explain the part of the Code which it is 
claimed he is violating and ask him for a statement of his position. 
At the same time the State Director will furnish him with a copy of 
the Code for his Industry and a copy of the pi in ted statement entitled 
"Information for Persons Charged with Violation of an NRA Code" 
(in the form prepared for use by State Directors). If the respondent 
does not reply within a reasonable time, the State Director will im- 
m.ediately communicate with him again to the same eft'ect by regis- 
tered mail, enclosing a copy of the Code and of the printed statement 
just mentioned. 

(b) If the respondent admits the violation alleged but 
furnishes satisfactory evidence that he is now complying, is willing 
to comply in the future and has made equitable restitution for past 
violations, the case will be considered as adjusted and the complainant 
and the respondent will be so notified. Where an employee has 
been discharged for filing the complaint, the discharge will be treated 
as an aggravation of the original violation, and reemployment of the 
complainant will be a condition precedent to filing the case as adjusted. 

(c) If the respondent denies the facts as alleged, or if he 
admits the facts but takes issue as to the meaning of the Code or 
asserts that he is not subject to the Code or there is a conflict of 
Codes, and if the respondent fails to satisfy the Compliance Officer 
that he is not violating a Code, he should be invited to appear at the 
office of the State Director and state his case, when in the opinion of 

9675 



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the Compliance Officer such an mterview is expedient and might 
facilitate an adjustment. If no interview is held or if, after an inter- 
view, the case is still unadjusted, and it appears desirable for a Field 
Adjuster to visit the respondent, arrangements for such a visit should 
be made. (For the use of Field Adjusters see page 18.) If in any 
case there is doubt as to the meaning of the Code or as to whether the 
respondent is subject to the Code, or where there is a conflict or 
possible conflict of Codes, an official ruUng should be obtained from 
NRA in Washington. 

(d) Field Adjuster's Report 

(i) If the Report of the Adjuster indicates that 
the respondent has not violated any provision of an approved Code, 
the complainant will be so advised by the Compliance Officer. If no 
further word is received from the complainant within a reasonable 
time, the case will be filed as adjusted and the respondent so advised. 

(ii) If the Adjuster's Report indicates that the 
respondent is willing to comply and make equitable restitution for 
his past violations, the Compliance Officer will file the complaint as 
adjusted upon being furnished satisfactory evidence of present com- 
phance and equitable restitution, and will so advise the complainant 
and respondent. 

(iii) If, on the other hand, the report of the 
Adjuster indicates that the respondent refuses to comply or make 
equitable restitution for past violations or has failed to furnish a 
satisfactory explanation, the Compliance Officer — if he decides further 
action on his part would be futile — will lay the case before the State 
Director with his recommendations. The State Director wiU inform 
the respondent of the action which he decides to take thereon. 

(e) Arbitration 

If at any stage in the adjustment of any complaint 
arbitration is an appropriate means of adjustment the CompUance 
Officer may seek to induce the parties to arbitrate. 

(f) All complaints must he treated conjidentially. See 
Introduction, Part One, page 7. 

C. STATE ADJUSTMENT BOARD 

1. General 

If in any case either the complainant or the respondent 
is dissatisfied with the final decision of the Comphance Officer, he 
should be afforded an interview with the State Director. If he is 
dissatisfied with the final decision of the State Director it should be 
made clear to him that he has the right to appeal to, and to appear in 
person before, the Adjustment Board, or to file a statement with that 
Board. 

2. Organization 

There will be one or more Adjustment Boards in each 
State. The number and location of these Boards will depend upon 

9675 



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the volume of cases submitted for consideration. The Board will be 
composed of an equal number of members (approved by NRA) repre- 
sentative of employees and of employers respectively, and a chairman 
representative of the public, agreed upon by the other members, to be 
appointed by the President. 

The State Director will designate his Officer Manager 
to serve as Executive Secretary of the Adjustment Board. Clerical 
assistance will be furnished by the Office of the State Director. 

The Legal Adviser on the staff of the State Director 
will advise the State Adjustment Board on legal matters whenever 
it so requests. 

Whenever a respondent makes a statement before the 
Adjustment Board, a summary of the statement should be promptly 
prepared by the Executive Secretary of the Board or the Legal 
Adviser. The summary should be signed by the respondent, if he is 
wilUng. If he decUnes to sign it, a statement to this eflfect should be 
added to the sunomary. If the respondent declines to make any 
statement before the Board, the Board's recommendations should 
note that fact. 

3. Functions 

(a) A case will be submitted to the Adjustment Board by 
the State Director where either the complainant or respondent has 
requested such reference or where the State Director desires to place 
a matter before the Board. 

(b) The Board will not decide on what action should be 
taken on cases, but will make recommendations to the State DirectDr 
on matters submitted to it by him. The Board may recommend 
anv action which may be taken by NRA as indicated in paragraph E 
below. Where the recommendations of the Board are not unani- 
mous, the signed recommendations of each member should appear. 

(c) If the State Director decides not to take action on a 
complaint but upon submission to the Adjustment Board a majority 
of the Board recommends that action should be taken, then, unless 
the complainant v^-ithdraws his complaint or the respondent compUes 
with the recommendations of the Board, the State Director will 
report the case to the National Compliance Director. 

(d) All recommendations of the Adjustment Board be- 
come a part of the record and whenever a case is forwarded to the 
National Compliance Director the original signed recommendations 
will accompany the case. 

D. REFERENCE TO THE NATIONAL COMPLIANCE DIRECTOR BY 
THE STATE DIRECTOR 

1. If adjustment has not been ejffected by the foregoing 
procedure the State Director will inform the respondent that unless 
the respondent furnishes satisfactory evidence of compliance within 
a stated number of days the complaint will be forwarded to the 
National Compliance Director in Washington for appropriate action. 

2. If such evidence is not supplied within the number of 
days stated, the State Director will inform the respondent that he 

9675 



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is forwarding the case to the National Compliance Director. After 
allowing the respondent sufficient time to furnish evidence of com- 
pliance by return mail, the State Director will forward the case to 
the National Compliance Director with his recommendations. The 
State Director may recommend any action which may be taken by 
NRA as indicated in paragraph E below. 

3. On forwarding the case to the National CompUance Direc- 
tor the State Director will transmit to him: 

(a) The original complaint. 

(b) A copy of the digest or of the complaint. 

(c) All previous correspondence on the case. 

(d) All original evidence, including all affidavits and all 
reports of Field Adjusters (if any). 

(e) The recommendations of the Adjustment Board (if 
the case was referred to the Board). 

(f) A summary of the respondent's statement before the 
Adjustment Board (if he made an oral statement to the Board) and 
his written statement to the Board (if he filed such a statement). 

(g) A report signed by the State Director setting forth: 

(i) That notice of the complaint was furnished to the 
respondent with an explanation of his obligations with reference to 
the subject matter of the complaint. (See paragraph 4 below.) 

(ii) That a copy of the Code was furnished to the 
respondent. (See paragraph 4 below.) 

(iii) That a copy of "Information for Persons 
Charged with Violation of an NRA Code," in the form prepared 
for use by State Directors, was furnished to the respondent. (See 
paragraph 4 below.) 

(iv) A summary of the facts with reference to the 
violation, as found by the State Director, including relevant dates, 
names, hours, wages and the Uke. 

(v) Details of any personal interviews the respond- 
ent had at the State Director's office. 

(vi) Any other pertinent facts within the knowledge 
of the State Director. 

(vii) The State Director's recommendations. 

4. If the respondent did not answer, either personally or 
by letter, the State Director's first notice of the complaint, the State 
Director's report should further state that the matters referred to 
in (i), (ii) and (iii) immediately above were seat to the respondent 
by registered mail, and the original Post Office registry receipt should 
accompany the report. 

5. If at any time the State Director is convinced that a com- 
plaint conclusively sets forth a violation which the respondent shows no 
disposition to correct or adjust, the State Director may immediately refer 
the entire record in the case to the National Compliance Director without 
following the steps outlined above. However, after a case has been 

9676 



-108- 



referred to the National Compliance Director under this paragraph, 
the respondent will be informed of such reference. He will also be 
informed that he has a right to appear before, or file a statement with, 
the Adjustment Board within a stated number of days. If the 
respondent appears before or files a statement with the Adjustment 
Board within the time set, the Board's recommendation should be 
forwarded to the National Compliance Director as soon as the case 
has been considered by it. If the respondent does not appear or file 
a statement within the time set, notice to that effect should be 
promptly given by the State Director to the National Coniphance 
Director. 

E. ACTION TAKEN IN WASHINGTON 

1. National Compliance Director 

When an unadjusted complaint is referred to the National 
Compliance Director he will take such action as he may deem advis- 
able. If he is unable to adjust the complaint or feels that he should 
not make further attempts at adjustment, he will refer the case to the 
National Compliance Board. 

2. National Compliance Board 

Upon the reference of a complaint, with reports and recom- 
mendations thereon, to the National Compliance Board, that Board 
may decide to: 

(a) Undertake further attempts to reach an adjustment. 

(b) Call a pubHc hearing on the case to be held in Wash 
ington or locally. 

(c) Remove the Blue Eagle of the respondent and give 
pubUcity to this fact. 

(d) Recommend to the Administrator that the case be 
referred for appropriate action to an enforcement agency of the Gov- 
ernment, the Department of Justice, or the Federal Trade Commis- 
ion. When a complaint is referred to one of these agencies, it may 
make further investigations or it may take appropriate legal action of 
a civil or criminal nature. 

V. THE USE OF FIELD ADJUSTERS 

A. GENERAL 

When a case reaches the stage where there are controverted 
issues of fact, the use of Field Adjusters often becomes necessary to 
effect an adjustment. However, they should not be used as inquisi- 
tors and great care must be taken not to give that impression in the 
field. 

B. TYPES OF ADJUSTERS 

1. NRA Employees 

In some instances all of the adjusters will be staff em- 
ployees responsible only to the National Recovery Administration. 

9675 



-109. 



These may work directly out of the State Director's OfEce or may be 
stationed at points elsewhere in the State, reporting to the State 
Director's Office as occasion requires. 

2. Employees on the Staffs of Cooperating Agencies 

(a) The State Director will establish cooperative relations 
with available Federal and State Agencies within his State which have 
in their employ field representatives who might be utilized as Field 
Adjusters. There are many possible degrees of cooperative relation- 
ship. An individual employee of a cooperating agency may be 
authorized to investigate the facts of an individual complaint, or such 
an agency may be authorized to find the facts in all complaints which 
are referred to it. 

(b) No final arrangements for cooperative relations should 
be completed until a report has been made to the National Compli- 
ance Director and his approval has been given to the proposed 
arrangements. 

C. TECHNIQUE OF FIELD INVESTIGATION 

1. (a) The Labor and Trade Practice Compliance Officers 
are responsible for the assignment of complaints to their Field Ad- 
justers and the supervision of their activities in making necessary 
investigations. 

(b) Field Adjusters will submit their proposed itineraries 
in advance for the approval of the appropriate Compliance Officer. 
In the preparation of itineraries the distances to be travelled should 
be kept to a minimum. Likewise, if it is necessary to make a special 
trip of some distance and it is possible that no responsible person 
will be available for interview, an appointment should be made 
beforehand. 

(c) Field Adjusters will make daily and weekly sum- 
maries of their activities and will make complete reports on each 
complaint. 

2. A Field Adjuster should never enter any premises 
without first calling upon the respondent to announce his presence 
and discuss the complaint. 

3. If the respondent admits the facts as alleged in the 
complaint, his explanation should be obtained and a statement 
procured from him as to what he will do to end and to make equitable 
restitution for any violations which he admits. 

4. If the respondent admits the facts as alleged but takes 
issue as to the application of the Code to those facts, a clear explana- 
tion of the reasons for hi^ position should be obtained. 

5. If the respondent denies the facts alleged in the com- 
plaint, the Field Adjuster should request permission to examine 
the appropriate records (such as time cards, pay rolls, canceled 
checks, invoices and sales slips). If the respondent refuses, the 
Field Adjuster should not insist upon access to such, records. How- 
ever, he should explain to the respondent that his refusal will be an 
indication that he does not desire to adjust the complaint and will 

9675 



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operate to his disadvantage. If the respondent still refuses, the 
Adjuster should report the fact. 

6. Field Adjusters should not interview employees during 
working hours or upon the employer's premises without the per- 
mission of the employer. 

7. Field Adjusters should bear in mind at all times that 
it is their function to find the facts and explain the respondent's 
obligations under the Code to him. They should never engage in 
argument or dispute. 



-111- 



PART THREE.— ADJUSTMENT BY CODE AUTHORI- 
TIES OF COMPLAINTS OF NRA CODE VIOLATIONS 

L INTRODUCTION 

It is the fixed policy of the National Recovery Administration, as 
explained in the general Introduction to this Manual, to leave admin- 
istration for compliance to Industry itself as far as possible. But 
the ultimate responsibility for the administration of Codes rests with 
NRA, and the work of obtaining compliance cannot be left to any 
particular Industry unless that Industry is properly organized for 
that purpose. To the extent to which it is not so organized that work 
will be performed by NRA. 

This part of the Manual sets forth: 

(a) certain acceptable standards for the organization of Industrial 
Adjustment Agencies. 

(b) regulations governing the procedure whereby an Industry 
may obtain NRA's approval of its Industrial Adjustment Agencies. 

(c) a suggested procedure to be followed by these Agencies in the 
adjustment of complaints. 

In so far as this part of the Manual refers to the organization of 
Industrial Adjustment Agencies and the routing of complaints 
among them what is set forth here is merely one possible procedure. 
Industries will differ in their needs and will be free to propose plans 
suited to their individual requirements. However, so much of this 
Manual as governs the method of authorization of Code Authority 
organization and so much as governs the relationship of Industrial 
Adjustment Agencies to the National Recovery Administration are 
NRA Regulations. 

IL ORGANIZATION OF INDUSTRIAL ADJUSTMENT 
AGENCIES 

A. FOR TRADE PRACTICE COMPLAINTS 

A Code Authority desiring to adjust trade practice complaints 
should organize a Trade Practice Complaints Committee. Its mem- 
bers should be representative of different groups and interests in the 
Industry, and should be persons of high repute for character, intelli- 
gence and fair-mindedness. As this Committee will have important 
responsibilities it should be small enough to function actively, and its 
members should be persons who are free to give to the Committee as 
much time as its work may require. The Committee should have a 
legal adviser (unless one of its members is qualified to act as legal ad- 
viser and assumes the obligation to do so) and an executive secretary 
who will be charged with the responsibility for all routine correspond- 
ence and records. The Administration Member of the Code Author- 
ity will be a member of the Committee without vote but with a veto, 
subject to review by NRA. He will be responsible to NRA for the 
proper functioning of the Committee. 

Subject to the approval of the Code Authority, the Commit- 
tee may set up divisional, regional or local Industrial Adjustment 

9675 



-113- 



Agencies and use available agencies in the Industry, such as existing 
Trade Associations. If desired, the Committee and its divisional, 
regional or local Adjustment Agencies may be set up for only certain 
of the divisions of the Industry or regions of the country, leaving the 
other divisions or regions to the governmental agencies. 

B. FOR LABOR COMPLAINTS 

If the Industry desires to adjust its own labor complaints, it 
must provide adequate adjustment machinery. The interests of the 
employees in the Industry must be protected by this machinery. 
In order to set up adequate machinery a Labor Complaints Com- 
mittee should be organized. 

An approved organization of such a committee would be one 
having an equal number of representatives of employers and em- 
ployees, who would choose an additional member as chairman. The 
representatives of the employers may be appointed by the Code 
Authority subject to the disapproval of NRA. The representatives 
of the employees should be chosen in such manner that all employees 
in the industry may be represented as fairly as possible. A possible 
method of selection may be appointment by the President (or the 
Administrator, in industries with less than 50,000 employees) upon 
the recommendation of the Labor Advisory Board of- NRA. Any 
other organization agreed upon by the employees and employers in 
the Industry may be approved by NRA. The Committee should be 
small enough to function actively, and its members, as far as possible, 
should be persons who are free to give the Committee as much time 
as its work may require. The Committee should have a legal adviser 
and an executive secretary who Will be charged with responsibiUty 
for all routine correspondence and records. The Administration 
Member of the Code Authority will be a member of the Committee 
without vote but with a veto, subject to review by NRA, and will be 
responsible to NRA for the proper functioning of the Committee. 

The Committee may set up divisional, regional or local Agencies. 

The Committee and its divisional, regional and local Indus- 
trial Adjustment Agencies may be organized to function for only 
certain of the divisions of the Industry or regions of the country, 
leaving the other divisions or regions to governmental agencies. 

C. FOR LABOR DISPUTES 

An Industry which desires to adjust its own labor disputes 
(subject to any regulations which may be issued by the National 
Labor Board or the Administrator) should set up a Labor Disputes 
Committee. Its membership and organization should be in accord- 
ance with what has been said above with reference to the Labor 
Complaints Committee. The procedure to be followed in the settle- 
ment of labor disputes is not covered by this Manual. 

The Labor Disputes Committee may be organized to cover 
only certain divisions or regions, and may have divisional or regional 
agencies, which, if desired, may be identical with the divisional or 
regional agencies of the Labor Complaints. Committee. 

If a Committee is organized to handle both labor complaints 
and labor disputes, it may be referred to as the Industrial Relations 

9675 



-lis- 



Committee of the Industry. In any event, where an industry has 
both a Labor Complaints Committee and a Labor Disputes Com- 
mittee their work should be coordinated. 

D. DEFINITIONS 

The term "Complaints Committee" is a collective term for 
Trade Practice Complaints Committees, Labor Complaints Com- 
mittees, Labor Disputes Conamittees and Industrial Relations 
Committees (''highest Industrial Adjustment Agencies"). The term 
''Industrial Adjustment Agencies" includes all the Complaints 
Committees and all divisional, regional and local Adjustment 
Agencies. 

III. PROCEDURE TO BE FOLLOWED BY A CODE AUTHORITY 
TO OBTAIN AUTHORIZATION FOR ITS INDUSTRIAL 
ADJUSTMENT AGENCIES TO ADJUST TRADE PRACTICE 
COMPLAINTS, LABOR COMPLAINTS OR LABOR DIS- 
PUTES 

A. AUTHORIZATION FROM NRA IS REQUIRED 

Many Codes of Fair Competition contain statements that 
the Code Authority is authorized or required to adjust complaints of 
various kinds within the Industry. Such statements are not in 
themselves an authorization to the Code Authority to proceed to 
adjust complaints. In addition to what is stated in the Code con- 
cerning the duties of the Code Authority in this connection, the 
Code Authority must obtain NRA's approval of the proposed set-up 
of Industrial Adjustment Agencies and after those agencies have 
been actually set up the Code Authority must obtain NRA's authori- 
zation for them to proceed with the adjustment of complaints. This 
approval and authorization should be requested through the Admini- 
stration Member of the Code Authority in formal reports to NRA. 
As soon as the Deputy Administrator has notified the Code Authority 
that it is authorized to receive complaints in the first instance or that 
it is authorized to handle complaints on reference, the Deputy Admin- 
istrator v/ill certify this fact to the National Compliance Director, 
so that appropriate notice may be given to the State Directors. 

B. REPORTS BY THE ADMINISTRATION MEMBER OF THE CODE 
AUTHORITY TO NRA 

These reports should be submitted in tripUcate and set forth: 

1. The names, addresses and occupations of all members of 
the Industrial Adjustment Agencies and a statement of the groups 
and interests represented by each member (when the members have 
already been selected) ; 

2. An explanation, in the case of all Industrial Adjustment 
Agencies organized to handle labor complaints or labor disputes, of the 
manner in which the representatives of the employees have been or 
are to be selected; 

3. The business addresses of all Industrial Adjustment 
Agencies (if already fixed); 

4. The exact scope of all Industrial Adjustment Agencies; 
and 

9675 



-114. 



5. Whether complaints within the scope of a divisional^ 
regional or local Agency are to be filed with it in the first instance 
or with a higher Adjustment Agency or with the State Director. 

All changes in Industrial Adjustment Agencies must be 
reported in like manner. 

IV. A SUGGESTED PROCEDURE TO BE FOLLOWED BY A 
CODE AUTHORITY IN THE ADJUSTMENT OF COM- 
PLAINTS 

A. FORM OF COMPLAINTS 

1 . Complaints of Code violations will be in writing, prefer- 
ably on the NRA Complaint Form, copies of which may be obtamed at 
all Post Offices, except fourth class. 

2. Anonymous complaints will be acted upon at the discre- 
tion of the Adjustment Agency. 

B. RECEIPT OF COMPLAINTS 

1. Where Complaints Should be Filed 

If a Code Authority has been authorized by NRA to 
handle complaints of a particular type in the first instance, complaints 
of that type should be filed with the appropriate Industrial Adjust- 
ment Agency except where a complainant exercises his right to file 
his complaint with the State Director. 

2. Sources of Complaints 

The State Director is the only person who should file 
complaints with an Industrial Adjustment Agency authorized to 
handle complaints on reference only. Such an Agency will probably 
receive complaints from other sources by mistake. An Agency 
authorized to handle complaints in the first instance will receive com- 
plaints from all sources, including the State Director, the Code 
Authority, employers and employees in the Industry, and the gen- 
eral public. 

3. Complaints Improperly Filed with an Industrial Adjust- 
ment Agency 

Complaints will be filed with' an Industrial Adjustment 
Agency which should not be filed with it at all. The principal classes 
of such complaints and the manner in which they will be handled are 
as follows: 

(a) Complaints Not Relating to the Code for 
That Particular Industry 

If there is an Adjustment Agency authorized to 
handle complaints in the first instance in the Industry involved in the 
complaint, the Adjustment Agency which erroneously received the 
complaint should forward it to that authorized Agency. If there 
is no such Agency, or if the Agency receiving the complaint is in 
doubt, the complaint should be forwarded to the proper State Direc- 



9675 



-115- 



tor. In either event the complainant should be notified of the 
action taken. 

(b) Complaints Relating to the Code for That 
Industry But of a Character Which the 
Particular Adjustment Agency Which Has 
Received the Complaint is Not Authorized 
TO Handle 

If there is in the Industry an appropriate Adjust- 
ment Agency authorized to handle complaints of this character in the 
first instance, the complaint should be forwarded to that Agency. 
Otherwise it should be forwarded to the State Director. 

(c) Complaints Received in the First Instance by 
AN Adjustment Agency Authorized to Adjust 
Complaints of That Character on Refer- 
ence Only 

Copies or digests of the complaint should be made, 
and the original complaint, together with two copies of the digest or of 
the complaint, should be sent immediately to the proper State Direc- 
tor. Thereafter the complaint should be handled by the Adjustment 
Agency in the same manner as if it had been referred to the Agency 
by the State Director for handling on reference. 

4. Acceptance or Rejection of Complaints 

(a) Examination of Complaints 

All complaints which are proper ones for the Indus- 
trial Adjustment Agency receiving them to handle will be examined 
for legal sufficiency. Where the volume of complaints makes it 
desirable the Agency should retain a legal adviser. 

(b) Rejected Complaints 

(i) Complaints based on misunderstanding 

A complaint will be rejected if it is obviously 
crank, or where, even if all the facts as stated therein are true, those 
facts do not constitute a violation of the Code. In the latter case, 
the complaint should be acknowledged and returned to the complain- 
ant with a brief explanation as to why it has been rejected. 

(ii) Deficient complaints 

If it appears from the complaint that any 
provision of the Code may have been violated, but the complaint 
does not clearly state sufficient facts to establish a violation, the 
complainant should be advised wherein he failed to set forth a viola- 
tion, and may be requested to furnish additional information. 

(iii) Complaints indicating a deficiency in the Code 

In some cases a complaint 'may indicate that 
conditions are permitted by the Code which violate the spirit and 
intent of NIRA or of the Code and yet do not constitute a technical 

9676 



<-U6- 



violation of the Code because some provision of the Code is loosely 
drawn. In such a case, an explanatory letter should be sent to the 
complainant and to the respondent, and a report always should be 
made to the National Code Authority. 

(iv) Accepted Complaints 

If a complaint states facts which, if true^ 
constitute a violation of the Code, the complaint will be accepted. 

C. HANDLING OF ACCEPTED COMPLAINTS BY AN INDUSTRIAL 
ADJUSTMENT AGENCY 

1. All Complaints Must Be Treated Confidentially 
See Introduction, Part One, page 7. 

2. Notice to Respondent That Complaint has Been Filed 

In every case where adjustment is undertaken by an 
Industrial Adjustment Agency, the first step should be to inform 
the respondent of the nature of the complaint, explain the part of the 
Code which it is claimed he is violating, and ask him for a statement 
of his position. At the same time the Agency should furnish him 
with a copy of the Code and a copy of the printed statement entitled 
"Information for Persons Charged with Violation of an NRA Code," 
in the form prepared for use by Industrial Adjustment Agencies. 
If the respondent does not reply within a reasonable time, the Agency 
will immediately communicate with him again to the same effect by 
registered mail, enclosing a copy of the code and of the printed state- 
ment just mentioned. 

3. Where Respondent Admits Yiolation 

If the respondent admits the violation alleged but 
furnishes satisfactory evidence that he is now complying, is willing 
to comply in the future and has made equitable restitution for past 
violations, the Adjustment Agency should notify the complainant 
and the respondent that the complaint has been filed as adjusted. 
Where an employee has been discharged for filing the complaint, the 
discharge should be treated as an aggravation of the original viola- 
tion, and reemployment of the complainant must be a condition 
precedent to filing the case as adjusted. 

4. Where Respondent Denies Violation 

If the respondent denies the facts as alleged, or if he 
admits the facts but takes issue as to the meaning of the Code or 
asserts that he is not subject to the Code or there is a conflict of Codes, 
and if the respondent fails to satisfy the Adjustment Agency that he 
is not violating a Code, he should be invited to appear at the office 
of the Adjustment Agency and state his case, when such an inter- 
view seems expedient and likely to facilitate an adjustment. If no 
interview is held or if, after such an interview, the case is still unad- 
justed, and it appears desirable for a Field Adjuster to visit the 
respondent, arrangements for such a visit shpuld be made. The Field 
Adjuster may be either an adjuster in the service of the Adjustment 
Agency, or an NRA Field Adjuster in the service of the State Director. 

9675 



-117. 



If the services of one of these Field Adjusters are desired by the 
Adjustment Agency, a request should be addressed to the appropriate 
State Director. In any case where there is doubt as to the meaning^ 
of the Code or as to whether the respondent is subject to the Code or 
where there is a conflict or possible conflict of Codes, an official ruling 
should be obtained from NRA through the Code Authority. 

5. Field Adjuster's Report 

(a) If the Report of the Adjuster indicates that the 
respondent has not violated any provision of the Code, the com- 
plainant will be so advised by the Adjustment Agency. If no 
further word is received from the complainant within a reasonable 
time, the case will be filed as adjusted and the respondent so advised. 

(b) If the Adjuster's Report indicates that the respond- 
ent is willing to comply and make equitable restitution for his past 
violations, the Adjustment Agency will file the complaint as adjusted 
upon being furnished satistactory evidence of present compliance 
and equitable restitution, and will so advise the complainant and 
respondent. 

(c) If, on the other hand, the report of the Adjuster 
indicates that the respondent refuses to comply or make equitable 
restitution for past violations or has failed to furnish a satisfactory 
explanation, the Adjustment Agency — if it decides further attempts 
to adjust the complaint on its part would be futile — will inform the 
respondent of the action which it decides to take thereon. 

6. Right to Appear in Person 

If in any case either the complainant or the respondent 
is dissatisfied, it should be made clear to him that he has the right to 
appear in person before the Adjustment Agency or to file a statement 
with that Agency and, if still dissatisfied, to take the case up to a 
higher Adjustment Agency or wT.th the State Director or NRA in 
Washington. If the respondent makes a statement before the 
Adjustment Agency, a summary should be immediately prepared. 
It should be signed by the respondent if he is wiUing. If he refuses 
to sign it this fact should be noted in the summary. If he refuses 
to make any statement that fact should be noted in the Agency's 
file on the case. 

7. Arbitration 

If at any stage in the adjustment of any complaint arbitra- 
tion appears to be an appropriate means of adjustment, the Adjust- 
ment Agency may seek to induce the parties to arbitrate. 

8. Report of Adjustment or Return to State Director of 
Complaint Handled on Reference 

(a) Where a complaint is being handled by an Ad- 
justment Agency on reference it will make a Progress Report to the 
appropriate State Director as soon as possible. Such a Report must 
be furnished within the time specified by the State Director, in no 
event more than two weeks from the date of reference. 

9676 



-U8- 



(b) When a case which an Adjustment Agency is 
handling on reference is disposed of by being satisfactorily adjusted, 
a report should be promptly made to the State Director. 

(c) When a case which an Adjustment Agency is 
handling on reference is not disposed of b\^ being satisfactorily adjusted 
within tlie time specified by the State Director and the State Director 
is not satisfied -with the progress indicated by the Progress Report, 
the State Director will proceed to handle the case directly and wiU 
80 inform the Adjustment Agency. 

9. Transmittal of a Case to NRA by Adjustment Agency 
Authorized to Handle the Complaint in the First Instance 

(a) If the particular Adjustment Agency authorized to 
receive a particular complaint in the first instance is unable to adjust 
it, it should forward the original complaint and all relevant papers to 
the next higher Adjustment Agency, together with a report sufficient 
to serve as a basis for the report required in case of ultimate trans- 
mittal of the case to NRA. (See Paragraph (c) below.) If this latter 
Agency is unable to effect adjustment and there is a higher Adjust- 
ment Agency, it will forward the case to that Agency in the same 
manner. Detailed regulations regarding transmittal from one Adjust- 
ment Agency to a higher Adjustment Agency should be furnished by 
the highest Adjustment Agency. 

(b) If adjustment has not been effected by the fore- 
going procedure, the highest Ajustment Agency may inform the 
respondent that unless the respondent furnishes satisfactory evidence 
of compUance within a stated number of days, the complaint will be 
sent to NRA in Washington. 

(c) If such evidence is not supplied within the number 
of days stated, the highest Adjustment Agency should inform the 
respondent that it is transmitting the case accordingly. After allowing 
the respondent sufficient time to furnish evidence of compliance by 
return mail, the highest Adjustment Agency will forward the case to 
NRA, with its recommendations. On forwarding the case to NRA, 
the highest Adjustment Agency should transmit: 

(i) The original complaint. 

(ii) A copy of the complaint or of a digest of the 
complaint. 

(iii) All previous correspondence on the case. 

(iv) All original e\'idence, including all affidavits and 
all reports of Field Adjusters (if any), and all findings of fact by lower 
Adjustment Agencies. 

(v) The recommendations of the highest Adjust- 
ment Agency and of all other Adjustment Agencies that have handled 
the case. 

(vi) Summaries of the respondent's statements before 
the Adjustment Agencies that have handled the case, and any written 
statements submitted by him. 

(vii) A report signed by a proper officer of the 
highest Adjustment Agency setting forth: 

9675 



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(aa) That notice of the complaint was furnished 
to the respondent, with an explanation of his obligations with 
reference to the subject matter of the complaint. (See paragraph (d) 
below.) 

(bb) That a copy of the Code was furnished to 
the respondent. (See paragraph (d) below.) 

(cc) That a copy of "Information for Persons 
Charged with Violation of an NRA Code," in the form prepared 
for use by Industrial Adjustment Agencies, was furnished to the 
respondent. (See paragraph (d) below.) 

(dd) A summary of the facts with reference to 
the violation, as found by the highest Adjustment Agency, including 
relevant dates, names, hours, wages and the like. 

(ee) Details of any personal interviews the 
respondent had at the office of Adjustment Agencies handling the 
case (in so far as such interviews are not covered by summaries of the 
respondent's statements). 

(ff) Any other pertinent facts within the knowl- 
edge of the highest Adjustment Agency. 

(d) If the respondent did not answer, either personally or 
by letter, the first notice of the complaint, the highest Adjustment 
Agency's statement should further state that the matters referred to in 
(aa), (bb) and (cc) immediately above were sent to the respondent by" 
registered mail, and the original Post Office registry receipt should 
accompany the report. 

(e) If at any time the highest Adjustment Agency is con- 
vinced that a complaint conclusively sets forth a violation which the 
respondent shows no disposition to correct or adjust the case may be 
immediately referred to NRA without following the steps outlined 
above. 

10. Labor Disputes. 

If at any time in the adjustment of a complaint, a 
situation develops where there is a threatened or actual strike or 
lockout, the complaint, together with a report of all action taken 
thereon to date and of all other pertinent facts, will be referred direct 
to the appropriate Industrial Adjustment Agency if one has been 
authorized to handle labor disputes, or, if not, to the appropriate 
Regional Labor Board of the National Labor Board. 

n. Recommendations. 

(a) An Industrial Adjustment Agency may recom- 
mend anv action which may be taken by NRA as indicated in Part 
Two, IV,^ E, page 18. 

(b) All recommendations for action to be taken by 
NRA should be signed by the members of the Agency making the 
recommendations (together with a statement as to the interests each 
member represents). 

(c) Where the recommendations of the Adjustment 
Agency are not unanimous, the signed recommendations of each 

9675 



'TM- 



member should appear (together with a statement as to the mterestis 
which each of them represents). 

D. COMPLAINTS REFERRED TO AN INDUSTRIAL ADJUSTMENT 
AGENCY BY THE NATIONAL COMPLIANCE DIRECTOR 

A complaint relating to an Industry which has no Adjust- 
ment Agency authorized to handle complaints of that character 
either in the first instanee or on reference may be sent by NRA to the 
Code Authority of the Industry, to attempt to settle the complaint 
through the weight of public opinion in the Industry. The Code 
Authority may sometimes be in a position to do this, even though it 
has no Agency in the Industry to handle such complaints. 

E. GENERAL 

1. Relation of the Highest Industrial Adjustni'^nt Agency to 
Divisional, Regional and Local Agencies 

In each Industry in which divisional, regional or local 
Adjustment Agencies are set up, the Complaints Committees of the 
Code Authority should issue regulations which cleariy define their 
relations to the divisional, regional, and local Agencies. These 
regulations must be filed with NRA and should cover at least the 
following points: 

(a) The nature of the complaints which may be handled 
by each- divisional, regional or local Agency. 

(b) The reports to be made by all the Agencies to the 
Complaints Committees as a basis for their reports to the National 
CompUance Director. 

(c) Whether complaints may be filed by the complainant 
direct with the divisional, regional or local Agencies and, if not, where 
complaints so filed in error should be sent. 

(d) The manner in which complaints will be sent upon 
review or appeal to higher Agencies. For example, the regulations 
may provide that if at any time a lower Adjustment Agency is convinced 
that a complaint conclusively sets forth a violation which the respondent 
shows no disposition to correct or adjust the case may be immediately 
referred to the highest Adjustment Agency unthout following the steps out* 
lined above. 

(e) Communication with NRA. 

(f ) General rules and regulations for handling complaints 
in ampUfication of the procedure suggested in this Manual. 

2. Suits by Code Authorities 

Suits by Code Authorities and their P. djustment Agencies 
in relation to a Code fall in the field of enforcement rather than 
adjustment, and should not be brought without the express prior 
approval of NRA. All suits against Code Authorities should be 
promptly brought to the attention of NRA. 

Hugh S. Johnson, 



Administrator. 



9675 



•-121- 

APPEliniX VI. 
Office O rder No. 37 
October 24, 1935 



Rules and Refgrulations Governing Compl a ints Under 
Sect ion 3 (e ) of Title I of the 
national Industrial Hecover:/ Act 
Issued Pu rsuant to Exec utive Or der October 23, 1935 

(1) T7ho May Make Gom-olaint 

As prescribed in Section 3 (e) of Title I of the National Industrial 
Recovery Act, complaint may be made by "any labor organization, or any 
trade or industrial organization, or group which has complied with the 
provisions" of Title I of the ilational Industrial Recovery Act by having 
in actual operation a code or agreement pursuant thereto. Ordinarily 
complaints should be made by a trade, industrial or labor organization 
or by a group (organized or unorganized) of producers, representing more 
than half of the production of the article or articles which it is claim— 
ed are affected by competition from imports, 

(2) Under Fnat conditions Complaints may be Made 

Under the law, action may be taken ijinder Section 3 (e) only when im- 
ports of the article or articles which are the subject of complaint are 
substantial or are being entered in increasing ratio to domestic produc- 
tion of any competitive article or articles. The complainant must be 
prepared to furnish definite aJid detailed evidence that imports are on 
such terms or conditions as to render ineffective or seriously to en- 
danger the maintenance of any code or agreement, 

(3) To XTiiom Complaints Shop.ld be Addresse d and W i th TJhom Filed 

Complaints should be addressed to the president of the United States 
and tliree copies mailed to or filed with the Imports Division of the 
National Recovery Administration, Washington, D, C. 

(4) Form of Complaints 

Complaints should be made in the following form: 

(Place) 

, 193_ 



The President, 

White Eouse, 

Washington, D, C, 

Dear ur» President: 

The undersigned, having complied with the provisions of Title I of 
the National Industrial Recovery Act, do hereby, pursuant to Sections 
9675 



-122- 
3 (e) of said title, inake con;olaint that 



(ilane articles aiid the tariff 

■ are iDeing imported into the United States 

paragraphs covered 'b^ each) 

in such substantial quantities or in such increasing ratio to domestic 
production and on such terras or under such conditions as to render inef- 
fective or seriously to endanger the maintenance of the code of fair 

competition approved (or -orescrihed) by 3'"0u on 

(date) 
for agreeraent entered into with you 



( dat e ) 

for _, 

(Trade, or industry'- or suodivision thereof) 

In support of this complaint, \-ie are enclosing herewith the schedule 
of information required to "be filed with complaints under said section 

3 (e),. You will also find enclosed 

(List other tatles, "brief, affidavits, 



etc, enclosed) 

Furthermore, the undersigned and all parties in interest represented 
"by them are prepared to f-ornish to the ixational Itecovery Administration 
and/or the United States Tariff Commission all pertinent information in 
their possession, and to malce available all "books of account and all 
other records and papers for inspection and analj'-sis "by their duly ac- 
credited agents. 

It is understood that all information regarding the operations of 
individual producers, now given or v/hich will "be given or o"btained, is 
to "be held in confidence, ■ 

Respectfully, 

(signature of Comi::lainants) 
( Address of Conplainejits) 



(5) Schedule of Informati on 

nach complaint must "be supported hy such specific information a,s 
may "be necessary to esta"blish a prima facie case for an investigation 
under Section 5 (e). The tj^e of information necessary/ to ena"ble a de- 
cision on the question whether an investigation is warranted is out- 
lined in the Schedule of Information which follovrs. If the information 
called for therein is given fully at the time of filing a complaint, it 
not only will facilitate decision whether the complaint should "be made 
the subject of an investigation "but also will expedite the completion 
of fxie investigation should it he ordered. Some of the information 
called for, such as that with respect to -oroduction, is o"btaina"ble only 
from complainants and is a"bsolutely essential to determining the ques- 
tion whether an investigation is warranted, ; 

Hugh 3. fbhnson 
Adjministrator' 



►-123- 

SCHELULE OF SUPPORTING IlTFOmiATIOII TO ACCOI.rPANY COMPLAINTS 
UNDEIl SECTION 3 (e) OP TITLE I OP THE NATIONAL II^TDUSTRIAL RECOVERY 

ACT 



NOTE: A S EPARATE SCIIEPULE S HOULD BE I.ADE OUT IN DUPLI CATE FOR EACH COI.I^ 
MODITY LISTED IN TilE COi PLAINT. 



( \71iere it is not possible t o sup-ply the informat i on called for in 
a ny section of thi s sched ule, th e r eason s hould "be clearly and specifical>^ 
ly stated in that s ection , ) 

■^» Su'b.iect o f Complaint. 

(l) Name of the commodity the imports of which are the suoject of 
complaint 



(2) If complaint is confined to specific varieties, grades, or t^rpes 
of the commodity, state the varieties, grades or types to which it is 
confined , 

(3) State paragraph number in Act of 1930 covering the commodity which 
is the subject of complaint_ . 

3. Trend of Imports 

(This section should be made out only if import statistics are readily 
available to complainants. ) 

(1) By years 



Year 


In Quantity 

( ) 

unit 


In Value 


1923 : 

1925 

1927 

1929 J 

1931 

1932 







(2) By months 



Month 


(_. 


Quantity 
unit 


) 




In Value 






1931 1932 1933 1934 


1931 1932 1933 1934 


Januarj'- : 

February 

March 

April 

May 

June : 

July 

August : 

September 

OcT:ober 

IJovember 

December : 



















-124- 

C. E ange and variety of im'ports 

( Q;aestions in this section must be answered fully) 

(l) Describe the range and variety of imports as to tj'pe, variety, 
grade, weight, composition, degree of puritjr, and other distingij-ish- 
iiig characteristics. 



(2) What tj'-pGs, varieties, grades, etc., are the largest items of 
inport? 



D ^ Range and variety of domestic production 

(1) Xescrihe the range end variety of domestic production as to 
type, variety grade, weight, composition, degree of purity and other 
distinguishing characteristics. 



(2) Fnat types, varieties, grades, etc., are the largest items of 
production? 



■ ■ :•••-, 






5 : . : -. ,' '. ' ', '• 



-125- 

E. Con-:oa.ra"bility of im'oort s ai'id iproduction 

(l) State the varieties, t3n:)e3, ;^ra.des, vrei^-hts, etc, of imports 
and of domestic production which 8.re most nemrlj'' conparatle in use and 
price. In each case state which of the two, the domestic or the import- 
ed product, usually sells in a common mr.rket to the same class of h^iyers 
for the higher price; state also the difference, if any, "between the two 
in kind of material, in weight, construction, in Cje or finish, in purity, 
in appearance, or in other important characteristics. 



(2) If the commodity is one in which differences in quality are im- 
portant and if it is not too l)ulk:;\'' or too e:rpensive, suhmit (as ExhilDit 
A-1, A-2, A-3, etc.) sanroles of the imported grades and (as Ezdiihits B«l, 
B-2, B-3, etc.) sarrples of the domestic grades given ahove as most closely 
comparalDle with imports, B-1 with A-1, E-2 T/ith A-2, etc. List "below the 
samples, if any suomitted: 

E:dii"bit num"ber Description of sa-mple 

Items reToresentative of imports 

Exliitit A-1 
E:dii"bit A-2 
Erdiihit A-3 

Domestic items most compara"ble with 
imroorted sample 

E.-:dii"bit B-1 

Exhi"bit B-2 
ExhiDit B-3 



9675 



-127- 



(9) If the commodit;' concerned in the comolaint is a material used 
in further manufacture, into v/hat- finished product and v/hat tTpes 
or grades (high, medi-.mi, or 1ot7 price) of finished product, does the 



(a) Imported product go_ 



(h) Douestic product go_ 



9675 



-128- 

G» Prices of the domestic article concerned in the complaint 

(it is iiTioortant that the information ashed for in this section be ^Tjiven) 

(l) C-ive actunl net v^holesale sellin/^ prices in each month shown helov/ 
for one or tv/o j^rades or t^rpes v/hich are the largest items of domestic 
production and for one or two grades or types v;hich are m.ost coraparalDle 
with the principal items of import. 



Price Per 



Delivered to 



or F.0.3. 



(Principal market in which competition 
is enco-untered v/ith imports) 



(Shipping points) 



Month 

and 
Year 



Grade or grades produced in 
the U.S. in largest quaiitity 



Grade or grades most com- 
parable with imports 



(l-Taine of Gradel/ 



(Name of Gradel/ 



(Name of Gradel/ 



(Name of Gradel / 



1929 
July 

1932 
Jan. 
Apr. 
July 
Oct. 



1933 

Jan. 

July 

Aug. 

Sept. 

Oct. 

Nov. 

Dec. 

1934 

Jan. 

Feb. 

Mar. 

Apr. 

May 

June 

July 

Aug. 

Sept. 

Oct. 

Nov. 

Dec. 



1,/ If saiTple is being filed, give Exhibit Number 



9675 



-129- 



H. Do'Tiestic vto duct ion 

(l) Oi'fic i?.! production rt;-'tistics 

If readilv availaljle to' coiiijoiainants, give total domestic pro- 
duction of tiie commodity as rscordod hy some government agency or trade 
association for the follo^vin.j years I 



Tlie source of ii£aires given is 
Unit of ouantity is 



^^ 



leai 



19?3 
1925 
192? 
1929 
1931 
1932 
1933 



Total Domestic Jrroduction 



Q ,iiantity 



Value 



Doinestic pro^ uction of articles 
mos t compe titi ve Y/ith imports 
Qu.'inti'ty Value 



(2) Trend of -produc tion o f complainpnts . 

(The info'-mation here renuired is essential to the "disposition of sr^j 

r—. — IT ^~' '' 

complaintj ■ - . 

If "oractic'r'ble th-^ in'"'ivi'-''u''l pro-'^ucors shoul''; suhmit tlneir T)ro.-^u.c- 
tion of the com-^oditj- ■■-'■hich l^^i tlie !:n?'bject of com."nlriint to the tra'^e 
association or other agency representing them and the tahle helow shou..ld 
he made out f'^r the comhii^^ed proc^uction of all the:Dlants represented in 
the complaint. If that is done, arp'^enr' a''- ElrhihitiC separate tahles 
showin--^ the proriuction of; each -Dlant represente"'^ in the complaint. 

If not practicable f^pr individual producers to suhmit their t)roduc*«'. 
tion statistics to the trade association or other a-"'ency representin-'=: _ • 
them, each "orcducer may file separately with the iirroorts Division of the 
National Recovery Administration the statistics cajl-ied for in the tahle .;. 
"below. If that is da.one, merely state helov that in'^vidual ■nroducp'rs are 
separately suDmittinf; statistics of their productiion. 



If the com^olainant is a lahor or^rani^ntion, the '^ata shoiild "be 
suprilied, if possihle, for the firms with v/hich the memhers of the or- 
'Aanization are emTDloyed. 



9675 



-130- 



FRODUCTICH OF COl/iFLAINAITTS 



(Unit 01 Q,urntity) 



Month pjnd Year 


Total production of 


Production of the grade 




: the coriinodity 


or 'j^rades most compar- 
able with imports 


1929 






1931 


, ' 




1932 






J onur^xv-I-arcii 






April-jTine 






July- Sep teinber ' 






October-Decemlier 






1933 ! 






Jrnuary-I.larch ' 






April'-J'uiie 






July 






August 






September : 






October ! 






Ho vender ! 






DecernlDer ! 






1934 






January ! 






February 






March 






April 






May 






June 






July 






August 




: 


September 






October 






November 






December 




: 



9675 



-131- 

( 3 ) Inportonce of the ccnmodity in productio n 

(it is e£;.entinl to furnish the informati on Iiers called for) 

For erch plant represented in txie complaint, stote separately the 
percenta;;e vhich the commodity concerned in the complaiiit is of the total 
value of production (or- value of sales if V3lue of production is not 
availal)le) cf all coniiiodi ties in the plant. 



Ihiine rnd location of plant 


: Hrtic of the value of production of 
. : 'xorrrnodity concerned in the complaint 
: : to 'total value of production of all 

: com. iodi ties 




: (percent) 


: 1931 
• (percent) 


. (percent) 








, , 







































































9675 



-152- 

I. l^un'Der cf eniployes snd arao'ant of -payroll 

(The date. heTe called for are essential for the disposition of complaints) 

Tiie te.l)le belovr, vith respect to the rrom'ber of workers and the 
amount of pa^'rolls, should "be filled out separately for each plant re- 
presented in the complaint, or for selected plants, representative in 
^•eographic distribution, and representative of both large and small op- 
eratio::s and of different classes of producers (such as those with dif- 
ferent processes of production.) Horeover, if desired, each producer 
ma:/' not ciil" fill out but ma:.' file this table seraratel" for his riant 
or^, if he r.as ;r.ore than one 'cl-.nt, for each of his -plant s taken as re- 
present r.tive of his -production * If the individual concerns file the 
table separately?-, merely state belov: that individual producers are sep- 
arately submitting statistics of eraplo^Tiient and wages. In any case, the 
data given for indi\'idual concerns vrillbe held in strictest confidence. 

If the complainant is a labor organization, the data should be 
supplied, if possible, for the firms in which the members of the organ- 
ization are employed. 

T.ie data given in the table should be for vrorkers other than super- 
intendents, foremen ond office help and for the amount of the pa^Toll of 
these employes for the payroll period including the 15th daj' of the month 
named. 



)875 



-133- 



EMFL0YT::ii2:T AlID FAYI^OLL STATISTICS 



for 



Locate^ at 



(Fl-ce) 



Operated Dy_ 



(llpnie of prodiicinc' concern) 



Parroll 








Time plant in 


Period in~ 


Ij-amlDer of eraployeos. 


Fr 


yroll for - : 


o-peration dur* 


cludin;%' . 


en£^-aged -in producing ., 






ing pjiyroll 


15th of- 


' 




*" . • 


period stated 
in- 




All co.nraod- 


ConTf.ocit" 




:ToT workers : 


Hours 


. Days 




ities pro- 


; v.aicn is 


: All 


:on coirjiiodity: 








! duced in 


: sujject of 


:T:or::~ 


: which, is : 








plant 


. complaint 


ers 


:sujject of : 
s complaint : 







19P9 
Jan. 
July 

1932 
Jan. 
July 

1933 

Jan. 

Apr, 

July 

Aug. 

Sept , 

Oct. 

Nov. 

Dec. 

1934 

Jan. 

Feb. 

Mar. 

Apr. 

May 

June 

July 

Aug. 

Sept. 

Oct. 

Hov. 

Dec. 



9675 



-134- 

J. Costs of Production 

Complainants should sup;::.l^.' costs of production exclusive of 
interest on investment in the detail called for in the table "belov; for 
the first he If of 1953 en one or tv/o of the items produced in the f:reat>> 
est oua;itit:: in the United States and one or tv/o of the items most near- 
ly corrroarr.hle v.ath imports in price and use pjid listed in ansv.'er to 
question Z rhove . These costs should he ^iven separately for each plant 
represented in the ccm.plaint, or for selected plants representative in 
tgece^Taphic distrioution, and representative of Doth large and small 
operations and of different classes of producers (such as those using 
different processes of production.) koreover, each producer ma.y not 
only fill out "but may file this tahle separately for his plejit, or if 
he has mere than one plpjit. for each of his iplants ta>:.en as representa- 
tive of his 'production . In case this is done, merely state at this 
point in the schedule that individual producers are separately suo- 
raittin;,- cost data. In any case, the data ^iven for individual concerns 
will "be held in strict confidence. 

In adc'ition, shov for each plant for vrhich costs are ;£;iven for 

the first half of 1933, the cha2v:e, if any, in labor costs and othgr 

specified cost elements due to the adoption of a code or ag;reement un-' 

der the ITational Industrial pLecovery Act . 

If detailed costs are not £;iven in the Table below, there mast 
be shovm the approximate percentafje which labor costs were of total costs 
before aclierence to a code "or a^ree^nent and the approximate percentage 
which labor costs are of total costs since such adherence. 

If the complainant is a labor or;2:anization, the data should be 
supplied, if possible, for the firms in which the members of the orgiani- 
z at ion are emplo^'ed. 



9675 



135 



COSTS OF PR0DUCTIC:J exclusive of INTEREST ON 
. . IITVESTLIEHT 



For 



jocated at 



(Plant) 



(Place) 



Operated hy^ 



(I'arue of producin.j; concern) 



Unit of quantity 





: Items produced in : 
: ■ g r e a test ouan t i ty •: 


: Items most nearly com- 
: parable with imports 














:" " 1/ 

: (Faine of 
: Item) 


" "" 17" : 

(Larie of . : 
Item) : 


: "" IT 

: ( jame c f 
: Item) 


1/ 

(l-ame of 
Item) 


Llaterial : 










Labor : 

Factory expense, ox-: 

cept depreciation. . : 
Total depreciation. . : 
Depletion (if anjO . . : 
General and adminis-: 

trative ex'oen'^e. . . . ; 






Selling oxpcnsG (ex-: 
elude trade dis-. . . : 
co'unts) : 






Total : 







1/ If sample is being filed, give Exhibit nu:nber, 



9575 



-135- 
E. General 

(l) List principal reasons for asking action -under Section 3 (e) . 



(2) What is the nature of tr^e action you suggest be taiien under 
Section 3 ( e) . 



(o) List any additional e:dii"Dits (inhibit D, etc) vrhich yea are 
enclosin-T. Eesi^mate in a -general vrar the sujject of each eichitit. 



9675 



-137- 

Tlie imuer signed and all the firms represented "by them agree to 
mal<:e availa'cle all books and records necessarv for checliing the figures 
submitted in ansv;er to this schedule. 

Si^-natui-es Addresses 



Date: 



ITote: If f! complainant is a trac'e or industrial association,- list 
below each member interested in the complaint; if, a labor union, list 
each firm in which members of the union are eraplo'-ed in malving domestic 
articles competitive vdth the imported -article which Is .th,e. subject of 
complaint. 



Name ' . Address 



9675 



-138- 
APPEIJIjIX V II 
THE PRESIDENT'S REEI.tPLO*i]!ElTT PEOaRAIvI 
national Recovery AcLninistration — Bulletin ITo, 3 — July 20, 1933 
President's Reemployment Program 
(Afgree-ients vitli the President under section 4 (a) N.I.R.A.) 



1. Names 

To save space and time, we will call the Hational Industrial TLecover^'' 
Act IT. I.E. A,, and the national Recovery Administration, IT.R.A, 

S. Industrial self-f^oyernment 

3"CLlletin llo, 2, dated Jiine 19, 1933, shows how to submit codes of 
fair competition under N.I.R.A., section 3(a)« It permits industries and 
trade associations to or<ganize for self-government, to increase employ- 
ment end. improve laoor conditions, to wipe out iinfair practices, to 
discipline themselves, and to stalDilize their operations. ITothing will 
"be permitted to slow u;o thr.t process. It must .1:0 fast if business is to 
do for itself and for the countrr/ the great good offered "by N.I.R.A. 
It will proceed a,s "promptly as codes can come in and be heard. Nothing 
in this bulletin s.nC. nothing in our plans or statements change that 
process, which will go on without any regard whatever to the new and. 
additional pla.n set forth in this bv-lletin (iTo. 3). 

3 . C odes and agree le nts distin.-Tuished 

Eut s\7if t-moviiig changes require swift action. A rapid rise in 
prices 8.nd mass production is going on. Mass purchasing pc^er must rise 
as fast. The President has stated his policy to do this by prompt short- 
ening of the work week and raising of wages for the shorter week. Rules 
governing hours and wages of la.bor must be included in ever^'- code and 
codes must continue to come along as fast as possible. 3u.t whole indus- 
tries must organize and have many conferences before codes can be worked 
out e.nd. tha.t takes a long time. In this national emergency, we cannot 
delay broad reem-olo-nient while we wait for codes. If we are not to have 
a set-back in our returning prosperity, and if xie are to tal-re this 
chance to get out of this depression, we must act more quickly to get 
more and fatter pay envelopes to our workers. We can do this under 
section 4- (a), N.I.R.A., \/hich, in addition to codes, permits trade 
grourps and also individual employers to mr-ke AGREEIIENTS WITH THE PRESI- 
DEi^T EIHS3LP to do their iiart in this great effort. T7e are going to use 
additional pc-'er. This bulletin sets forth this swifter plan which is 
in addition to (and not in place of) codes. These new PRESIDENTIAL 
AC-RSSI.rElTTS should be sent in by all individual employers at once as 
provided in paragraph 7 of this bulletin, and codes should be sent in 
by Industries and trade associations as fast as they can be prepared as 
provided in Bulletin No. 2, N.R.A. 



9675 



-139- 

4 , T ine limit on Codes 

In order to assist these trades and industries which are not suf •• 
ficiently organized to present their codes i'h reiDresentative fashion and 
to help compose the difficult problems in other trades and industries 
TThere economic differences have delayed the suhmission of codes it is 
assumed that to all trades or industries vrhich have not submitted codes 
under section 3 (a) by September 1, 1935, the President will begin to 
hold hearings under section 3 (d) as fast as proper notice can be given 
and hearings arranged. 

So much for codes: The plan to create Nation-Tiide reeraplojTnent by 
PEESIDEIWIAL AGREEM3NTS as follows: 

5, The President's reenTOlo;^/ment drive 

A tru.ce on selfishness . — Before Labor Day — six weeks away — it is 
possible to solve the problem of raenployraent through individual AG-KE3S- 
MSNTS WITH THE PRESIDEl^T. But to do this the country must act quickly, 
vigorously, and boldly, as one man— get together in one powerful effort- 
declare a truce on selfishness. In this mass attaclr on depression there 
is a clear~cut part for every group. Members of each group are invited 
to become members of N.R.A. on the lolan set forth in this bulletin, • 

The em'oloyers ' part is to act at once end all together tq submit 
and scrupulously comply with AGSEElvIEHTS WITH THE PRESIDENT to shorten 
hours and raise wages and to cooperate with employees in peaceful adjust- 
ment of differences. The xiar-r to make these agreements is shor/n in 
paragraph 7, 

The em ployees ' ^oart in to do their best on the job, and to cooperate 
with U.S.A. and employers in peaceful adjustment of differences, I.Iore 
can be now done for workers through this cooperation of 125,000,000 
people than can ever be done "oy discord and dispute. 

The public's part — and especially the part of v/omen (who control '. 
the bulk of buying) — is to support all those employers and employees who 
do their parts to put breadwinners back to work. 

6 , Employers' badge of cooperation 

ITor the public to do its part, it must loiow which employers have 
done their part to put people back to work' by making these AGHEEIiENTS 
with the President and by codes. Every industry and everj'' employer who 
has agreed with the President on this plan, or who has had approved a 
code covering the vital subject of reemplo^Tnent , ?7ill be 'enrolled as a 
member of N.Pv..A. and given a certifica,te and a Government badge showing 
the seal of il.H.A. and the v/ords: " Member H.R.A. We do our ipa^rt ." It 
will be authorized to shov/ this badge on all its equipment, goods, com- 
munications, and premises. Lists of all employers authorized to use 
this badge will be on file at all joost offices so that an7/ m-isrepresenta.- 
tion bj' unauthorized use of N.R.A, badges can be prevented. 



9675 



-140- 

7 • "'"TlcT'grs* a-^^eer:er."t3 Trith the Presif-ent 

r.-i ii.T tlie three zb.:" ze^LrjitTi^ J'm17 27, letter cprriers trill de- 
live. ?_: rdch place of c'JLsiness a nessa^ fron the president, acconpanied 
Z" a cop~ of the fom of the President's Heenrloynent A^ereenent i a 
certificate of corpliance fom, and a ret'om enrelop-e addressed tc the 
iistrict office of the De'js.rt-ieiit of CoHBaerce, An.7 ei:plo7er rrho has not 
received this material tj July 29 can obtain it frcn his local postiaaster. 

Za.ch enployer Trho Trants to do his part irill sign the a^reenent and 
nail it in the return envelope, 

Cn cr after J,..i-rj.st 1, each enployer trtio has signed his agreenent 
and pu.t it into effect na:^ si§3i the certificate of coapliance, tal-ie it 
to his post office, ani receive the posters, etc., irhich evif.ence his 
nenhership in the H.P-.i, 

Ihe iistrict offices of the Tepsr-nenT of Connerce Trill prepare 
each Treeli a list cf a^ee^ents recei"- : 1 :n each tctm, and rrill send cne 
ccpy to "Tachineton and one coriy to the post office, rrhere it Trill "be post- 
ed for piiblic inspection. Postiaasters Trill send certificates of conpli— 
ance to the district offices, —here thej 't.II ce checked off a^ain 



o 1. y. — e 



— J. _ - « 



S» C^nE^jini^'^s ' "C-O.-^— '*f cooTierr^i^n 

ZTer7" consTiner in the Tniten States Trho rishes to cooperate in the 
President's ree-ipl OTTient drire and he considered as a nenoer in IT,2,A, 
nay p-t an7 tlie after A'liie'-ist 1, 193", 30 to the authorized estahlishnent 
in his locality (to he announced later^ and sign a statement of coopera- 
tion as follo-"s: 

" I "ill cco~)erate in ree'tnloyzignt h~^ supporting and "atronizing: 

^^- s-j.ch si^zier Trill then .:e given and -nay thereafter use the insignia 
of cons*ji2er nenhership in ir.?..A, 



There is herecv rrT^Tfl :r.e district recovery board of seven nen- 
bers for each distri: 7 ?-rtnent of CoEoerce to be arp : 
the president, Ihe \ -1_ consist of one person pronin-^" 

ran-ifc ct".ire, retail : ; "-^lesale trade, banlcing, famine, 1 
social service rrho is xrilling to volunteer his services "iT-ZMt corirensa- 
ticn. The local district nanager of the Pepartnent of Connerce -ill 
serve as secretary of the hoard. T^e hoard Trill consider, advise, 
report to H.H.A, on the nrogress cf the execution of 5.1.1..--. r:! -^ill 
pass upon such natters as shall he referred to it for acTicn ly l".l-.^. 

1'. State recover" "ccards 



There is herecy created for each State a :3tate recovery board of 
nine nenhers frcn each State to be a^^oointed by the President, rhe board 

9575 



"141- 

shall serve without compensation and shall select its chainnan and 
secretar,;'' fron amon:';^; its o\m. members. 

The menherships rill he truly representative of commercial, industri- 
al, labor, rnd civic interests of each State. The State hoards will advise 
and report upon the execution of N.I.R.A. in their States and receive and 
act upon all matters referred to thsm hy IT.EoA. or hy their district hoards. 
Each e'?over:ior will he notified of the appointment of the State hoard and 
it -will meet at the call of the governor. At th6 first meeting it will 
organize and decide upon and -oromul^ate its ov.'n iniles and procedure, 

11, State rec over^^ counci l . ' ■ 

There is hereby createc", to be organis^ed by and to serve in coopera- 
tion with each State board, a State recovery council, IJTDon application to 
the State recovery board by any State labor, manufacturing, trade, civic, 
social-service or p/elfare association, organization, or club, the presiding 
officer thereof is entitled, ex officio, to membership on the State recovery 
council. The function of the council is to recommend to the board 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 iT.R.A. in any 
proper matter to the end of perfecting and strengthening any such organiza- 
tion, and to assist to make available to the Administration of N.R.A, the 
services of any such organization. 

12, G eneral statement of policy and purpo se 

There is no force here except conscience and opinion. This is an 
appe.a.l to those good instincts of our people which hai,ve never been besought 
in vain, Sut it is not a ballyhoo campaign. The plan is new; the agreement 
is hot simple and a thorough public program 'of explanation is needed and 
will he cacried out. After four years of hopeless and seemingly helpless 
siiffcT-ihg and inaction, it v/ould be unforgivable not to open to the country 
the chance it now has under this law to unite once more to overcome an 
emergency and.," it may be, to defeat depression. 

This is a test of patriotism. It is the time to demonstra.te the 
faith of our fathers and our belief in ourselves. 'Je are a people dis*» . 
ciplipid Idj democracy to a self-control' — sufficient to luiite our purcha.sing 
pov/er— our labor pov;er — our management power to carry out this great na.- 
tiona.1 covenant with vigor, v/ith determination bu.t with the calm composure 
and fair play which should always mark the American way, 

Hugh S, Johnson, Administrator . 
Approved by: 

National Industrial Recovery Board 
Daniel C. Roper, 

Chairman 



9675 



-142- 

PE^SiraiT'S RE3;IPL0YI,E1IT AGSEElffiNT 

(Authorized ty section 4 (a) National Industrial Recovery Act) 

During tiie period of the President's emergency reemployment drive, 
that is to say, from Aug^ast 1 to December 31, 1933, or to any earlier date 
of approval of a code of fair competition to which he is subject, the 
undersigned hereby agrees with the President as follows: 

(1) After Aug-ast 31, 1933, not to- employ any person under 16 years 
of age, e::cept that persons between 14 and 16 may be employed (but not in 
manufacturing or mechanical industries) for not to exceed 3 hours per day 
£ind those hours between 7 a.m. and 7 p.m. in such work as will not inter- 
fere with hours of day school. 

(2) Hot to work any accounting, clerical, banlcing, office, service, 
or sales employees (except outside salesmen) in any store, office, depart- 
ment, establishment, or public utility, or on any automotive or horse- 
dra\7n passenger, express, delivery, or freight service, or in any other 
place or manner, for more than 40 hours in any 1 week and not to reduce 
the hours of any store ,or service operation to below 52 hours in any 1 
week, unless such hours were less than 52 hours per week before July 1, 
1933, and in the latter case not to reduce such hours at all. 

(3) Hot to employ any factory or mechanical worker or artisan more 
than a naximi'm week of 35 hours until December 51, 1953, but with the 
right to work a raaximu^n week of 40 hours for any 6 weeks within this 
period; and not to employ any worker more than 8 hours in any 1 da,y, 

(4) The mcLxim"an hours fixed in the foregoing paragraphs (2) and (3) 
shall not apply to emiDloyees in establishments employing not more than two 
persons in towns of less than 2,500 population which towns are not part 

of a larger tra.de area; nor to registered pharmacists or other profession- 
al persons employed in their profession; nor to employees in a managerial 
or executive capacity, who now receive more than $35 per week; nor to 
employees on emergency maintenance and repair work; nor to very special 
cases where restrictions of hours of highly skilled workers on continuous 
processes would unavoidably reduce production but, in any such special 
case, a,t least time and one-third shall be paid for hours worked in excess 
of the maximum. Population for the purposes of this agreement shall be 
deterinined by reference to the 1930 Federal census, 

(5) ITct to pay any of the classes of employees mentioned in para- 
graph (2) less than $15 per week in any city of over 500,000 population, 
or in the im'iediate trade area of such city; nor less than $14.50 per 
week in any city of between 250,000 and 500,000 population, or in the 
immediate trade area of such city; nor less than $14 per week in any city 
of between 2,5CC and 250,000 population, or in the immediate trade area 
of such city; and in towns of less than 2,500 population to increase all 
wages 'oy not less than 20 percent, provided that this shall not require 
wages in excess of ^12 per week, 

(6) I'ct to pay any enDloyee of the classes mentioned in paragraph 
(3) l?.ss tlian 40 cents per hour unless the hourly rate for the same class 

9S75 



-143- 

of \7orI: on July 15, 1929, Mas less than 40 cents per hour, in which lat- 
ter case not to pay less than the hourly rate on Ju].y 15, 1929, and in no 
event less than 30 cents per hour. It is agreed that this paragra-oh 
establishes a guaranteed minimum rate of vpjy re^^^ardless of whether the 
emploj^ee is conpensated on the "basis of a time rate or on a piecework 
performance. 

(7) ITot to reduce the compensation for enploynent now in excess of 
the ■..lininuii wages herel);/ agreed to (notwithstanding that the hours worked 
in such eiYi-oloynent may be hereby reduced) a.nd to increase the pay for such 
emplo3"'"nient by an equitable readjustment of all pay schedules, 

(o) Hot to use any subterfuge to frustrate the STDirit and intent of 
this agreenent which is, among other things to increase emplo;^anent by a 
universal covenant, to remove obstructions to coramerce, and to shorten 
hours and to raise wages for the shorter week to a living basis. 

(9) Hot to increase the "orice of any merchandise sold after the 
date hereof over the price on July 1, 1953, by more than is made necessary 
by actual increases in loroduction, replacement, or invoice costs of 
merchandise, or by taxes or other costs resulting from action taken pur- 
suant to the Agricultural Adjustment Act, since July 1, 1933, and, in 
setting such price increases, to give full weight to probable increases 
in saJ.es volume and to refrain from taking profiteering advantage of the 
consuriing Dublic. 



o ir' 



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

(11) To cooperate to the fullest extent in having a code of fair 
competition submitted by his industry at the earliest possible date, smd 
in any event before Seritenber 1, 1933, 

(12) Tjhere, before June 16, 1933, the undersigned had contracted 

to T3urchar.e goods at a fixed price for delivery during the period of this 
agreement, the undersigned will make an appropriate adjustment of said 
fixed price to meet any increase in cost caused by the seller having sign- 
ed this President's Reemploynent Agreenent or having become bound by any 
code of fair competition approved 'by the President. 

(13) This agreement shall cease upon approval by the President of 

a code to which the undersigned is subject; or, if the N.Pi.A, so elects, 
upon submission of a code to v/hich the undersigned is subject and substi- 
tution of any of its provisions for any of the terms of this agreement. 

(14) It is agreed that any person T;ho wishes to do his part in the 
President's reemployment drive by signing this agreement, but who asserts 
that some particular provision hereof, because of peculiar circumstances, 
will create great and unavoidable hardship, may obtain the benefits 
hereof by signing this agreement and putting it into effect and then, in 

a petition approved by a representative trade association of his industry, 
or other representative organization designated by N.R.A, , may apply for 



9675 



-144- 



a sts.s'- of such provision pending a summary investigation by N.R.A. , if 
he agrees in such application to abide by the decision of such investiga- 
tion. 'This agreeiient is entered into pursuant to section 4 (a) of the 
National Industrial Recovery Act and subject to all the terms and condi- 
tions required by section 7 (a) and 10 (b) of that act. 



Dated ,1933. 



(Sign here) 



(iTame) 


(official position) 


(Fi 


nn and corporation 


name) 




(industry or trad( 


3) 



(iTurnber of employees at .the date of signing) 



(street) 

(Tovn or city) (State) 



9675 



-145- 
i\PPENDIX 711 1 

Administrative Order IJo. X - 80 



APPROVING ONE FOmi OF AD:vHNISTH.A.TOR'S TSKRITORIAL 
COOPniATIOU AGKEHLENT 



Being enporered by Executive Crier No. 5750-A, dated 
June 27, 1934, to enter into at^reements pursuant to Sec- 
tion 4 (a) of the National Industrial Recovery Act with 
persois engaged in trade or industry in Puerto Rico or in 
the Territories of Hawaii and Alaska,, and having in Of- 
fice Order No. 102 dated July 14, 1934, indicated a de-r 
sire to approve tiic form of agree.nent to be entered into 
pursuant to Administrative Order No, X-60 dated July 2, 
1934; 

NOW THEIiEEORE . I apiorove the foru of Administrator's 
Territorial Cooperation Agreement which is attached hereto 
and marked by me as "Exhibit A"« 



HUGH S. JOHNSON 
Administrator for Industrial 
Recovery 



Aioproval Recommended; 



Linton M. Collins , 

Acting Division Administretor 



Washington, D. C. 
August 27, 1934 



111 



9675 



-146- 

EXHIBIT "A". 

AI)MIN ISTRA. TOR'S TEEIIITO FJAL CO OPSBATION AGRBEMENT 

((Authorized iDy Section 4(a) of the National Industrial Recovery Act, 
and Executive Order 'of Juno 27, 1934.) 

The undersigned herebj'- agrees v:ith the Adiainistrator for Industrial 
Recovery as follows: 

(l) This Agreement shall 'becoine effective upon approval thereof l)y 
the Ad'.iinistrator, and shall be and remain in effect until: (a) A sepa- 
rate code, or modification of mainland code, for the Territory, to which 
the ur.dersigiied is subject, has been approved by the President; or (b) 

The Deputy Administrator for the Territorj^- of shall order its 

termination; or (c) In any event, not later than June ,15, 1935, 

(.?) The term "employee" as used herein includes any and all persons 
engaged in the trade/ industry of the undersigned however compensated, 

(3) No employee shall be permitted to v/ork in excess of hours 

in any one week, or hours in any one day, except for weeks in 

any ca.lendar year, any emDloj'ee may be TDermitted to v;ork not more than 
hours per week, or hours per day. However, before under- 
taking to '-'ork any employees for the hours -oer weelj^ or hours per 

day, per 'it cod in the above exception, the undersigned will notify the 
Leput''- A'lmiii.i'jtrator for by letter addressed to him at 



of the :!.:;?. ^ii/lion to work emplovees for such period during specified weeks. 

All hcuro ill excess of per day or per week shall be paid for 

at not lers than one n.nd times the em^loj^'ee' s regular rate of pay, 

(4) The Torovisions of Paragraph 3 shall not a^oply to emplo3'"ees 
engaged in Qmevgency maintenance or emergency repair work involving break- 
down or the protection of life or property, nor to persons employed in a. 

managerial or executive caoacity v^ho earn regularly dollars per 

wee]: or mere; provided, however, that employees engaged in such emergency 

maintenance and emergency repair v.'ork shall be paid at one and 

times their normal rate for all hours worked in excess of hours 

per week, 

(5) ITo employee shall be paid in any pay period less than at the 

rate of per week for hours of labor. It is agreed that 

this paragraph establishes a guaranteed minimum ra.te of pay regardless of 
whetncr the em"oloyee is compensated on the basis of time rate or on a 
piece"Work performance, 

(6) Not to make any reduction in the full-time weekly?- earnings of 
kny emplo;;'-ee whose normal full-time v/eekly hours are reduced by 



per cent, or less, below those existing for the four weeks ending • 

When the norm.a,l full-time weekly hours of an employee are reduced by more 
than said per cent, the full-time weekly wage of such employee shall not 
be reduced by more than one-half of the percentage of hour reduction 
above said per cent. In no event shall hourly rates of pay be reduced, 
irres-oective of whether compensation is actually -oaid on an hourly, weekly 

9675 



-147- 

or other "basis, nor shall any wages "be at less than the mininum wa^es 
herein provided. Within days of the date hereof, (unless such ad- 
justment has "been made theretofore) the undersigned shall adjust the 
schedules of ^vages of his employees in such an equitahle manner as r/ill 
conform to the provisions hereinabove set forth, and still preserve wage 
differentiaJs reasonably proportionate to those in effect prior to the 
date of this Agreement. 

(7) No person under sixteen (16) years of age shall he employed "by 
the undersigned in any capacity. No person under eighteen (18) years of 
age shall be employed at operations or at occupations which are hazardous 
in nature or are dangerous to health. The undersigned shall submit to 

the Deputy Adninistrator for for approval before , 1934, a 

list of such OToerations or occupations, if sny. The undersigned shall be 
deemed to have complied with this provision as to age if he shall have 

on file a valid certificate or permit duly signed b3^ the authority in 
such territory or possession empov^ered to issue employment or age certifi- 
cates or permits showing that the employee is of the required age. 

(8) Learners or apprentices, not to exceed one in of the 

total number of employees, may be employed by the undersigned and shall- 

be paid not le.ss than '^j of the minim.um wage herein provided for 

during the first weeks of their employment in the trade or industrj'-, 

and not less than fo of the minimum wage during the second weeks 

of such employment. The undersigned will not knowingly employ as a learn- 
er or ap3:)rentice any person who has been employed in the trade or industry?* 

except for the remainder of the period of the weeks training which 

has not already been served. 

(9) A person v/hose earning ca;Dacity is limited because of age, 
phjrsical, or mental handicap, or other infirmity, may be employed on light 
work at a wage below the minimum established by this Code, if the under- 
signed obtains from the proper authority designated by the United States 
Department of Labor, a certificate authorizing such person's emplo^rrnent at 
such wages and for such hours as shall be stated in the certificate. The 
undersigned shall file monthly with the Code Authority a list of all such 
persons employed by him, showing the wages paid to, and the maximum hours 
of work for such employee, 

(10) To raalce reasonable provisions for the safety and health of 
his employees at the place and during the hours of their employment, 

(11) Hot to use any subterfuge to frustrate the spirit and intent 
of this Agreement vfhich is among other things, to increase employment by 
this covenant, to remove obstr^dctions to commerce, and to shorten hours 
and to raise wages for the shorter week to a living basis. 

(12) Whereas the policy of the Act to increase real purchasing 
power will be made impossible of consummation if lorices of goods and serv- 
ices increase as rapidly as wages, it is recognized that price increases 
should be delayed and that when made, the same should, so far as reasonab- 
ly possible, be limited to actual increases in the seller's costs, 

(13) To support and patronize establishments which have also signed 
an Adiiinistrator' s Territorial Cooperation Agreement or are operating 
under an approved Code, 

9675 



-148- 

(14) To display official copies of this Agreement or of the 
provisions hereof with respect to hours of labor, rates of paj'', and other 
conditions of employment, and to see that such official copies are posted 
conspicuously and in sufficient number so that all employees may freely 
and conveniently read the same. 

(15) That he will not dismiss or demote any employee for making 

a complaint or giving evidence with respect to an alleged violation of the 
provisions of the National Industrial Recover;^.'' Act, or an approved Code 
of Fair Com-oetition, or of this and other Agreements of the same nature, 

(16) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall be free 
from the interference, restraint, or coercion of employers of labor, or 
their agents, in the designation of such reprc^pntatives or in self- 
organization or in other concerted activities for the purpose of collective 
bargaining or other mutiaal aid or protection, 

(1?) ITo employee and no one seeking emplq^.Tiient shall be required 
as a condition of emp?.oyjnent to join any covioarj;- i.'nion or to refrain from 
joining, organizing, or assisting a labor oi-g.-j.i.'ir'frtion of his own choosing, 

(13) The undersigned sJiall co-.Dly v-ith the ma/iimum hours of labor, 
minimuii rates of pay,, and other conc.itions of emploj^ent approved or 
prescribed oy the President, 

(19) This Agreement is not intended and will not be permitted to 
promote monopolies or to elimina'ce or oppress small enterprises and will 
not be permitted to operate in a di:: criminatory manner against them but is 
intended to effectuate txie policy ci Title I of the National Industrial 
Recovery Act, 

(20) This Agreement and. all the provisions thereof are expressly 
made subject to the right of the Presic!<?nt, pursua,nt to Section l'^'(c) of 
the National Industrial Recovery Act, to ca.ncel or modify the app/oval 
given to this Agreement. 

(21) It is understood by the undersigned that the president may by 
rule or regulation prescribe that all of the provisions of this Agreement 
shall be observed, in which event the undersigned in violating this 
Agreement may become subject to punishment by a fine of not to exceed 
five hundred ($500) dollars and imprisonment of not to exceed six (6) 
months or both, 

(22) The undersigned further understands that in all cases where 
an exemption has* been conditioned upon the making of this Agreement any 
breach of said Agreement by the undersigned may operate forthwith to 
terminate both this Agreeraent and such exemption, and that the under- 
signed immediately may become subject to the applicable Code of ?air 
Competition, 

Date , 1934. • 



9675 






-l<i:9- 



( Signed here) 

(llaine) 



(Cfiicial Position) 



(jira and corporation name) 



(industr:/ or trade) 



(ITum'ber of employees at the date of 



(street) signing) 



(To^.Tii or city) (State) 

The Administrator for Industry Recovery 

Washington, D.C. 

Date: 



(To oe signed in duplicate - a copy rhen approved and signed by the 
Administrator ^'ill be returned.) 114~'115 



967*5 



_15n. 



APP5i.iDIX IX 



OFFICE IxiSTHUCTIOIT 

NO, 28 :•.: ."- ■■ .' 

Septeiiber 30, 1935 

V0L.1TT.JIY AG-PuEEllENTS 

The attached annoiincenent from the Wliite House 
dated Septenbcr 30, 1935, is distrituted to of-iciaJs 
of the organi2-aticn for their inf onriation. 



L. J. Martin 
Acting Administrator 
National Pvecovery Administration 



9675 



-151- 

The White House announced that, to ar.Gist industry in taking ad- 
vantage of the sug.Testion of the President as to the use of the oppor- 
tunities afforded by the National Industrinl Recovery ^ct for voluntary 
agreements under NIPJl, the President had "by Executive Order llo. 7192 of 
September 26, 1935, delegated to the Federal Trade Commission authority 
to approve certain trade practice provisivons contained in. voluntary agree- 
ments submitted pursuant to section 4 (a) of Title I of said Act, 

In a letter of Au:jaBt 24, 1935, to Senator Harrison and Chai rnsn 
Doughton the President said: 

"Pending determination by the C^'ingress of whether further 
industrial legislation \^i 11 be enacted, it is hoped that in- 
dustrial groups will, in increasing numbers, avail themselves 
of the provisions of the Joint Puesolution er.tending National 
Industrial Recovery Administration which permit agreements 
(1) putting into effect the requirements of Section 7 (a), 
miniraaim wages, maximum hours and prohibition of child labor, 
and (2) prohibiting unfair competitive practices which offend 
against existing lawy Such agreements, when approved by the 
President, as to natters covered by the Joint Puesolution, are 
exempted expressly from the penalties of the antitrust laws, 
including criminal prosecutions, injunctions and treble damages. 
By such action, industry can imdoubteily do much to preserve 
the very substantieJ. gains iiade while the codes were in effect. 
Applications for approval of such agreements should be filed 
with the Federal Trade Commission, 

"Industry may continue ^to take advantage of the familiar 
trade practice conference -orocedure of the Federal Trade 
Commission, " 

The President has requested the Federal Trade Commission and the 
National Recovery Administration to coopero.te in handling voluntary 
agreements under NIRA in the following manner: 

1, All proposed agreements for voluntarj^ industrial cooperation 
submitted under iIIRA e:-:tended shall be filed a.t the office of the- Fed.eral 
Tracie Commission, If in addition to provisions for collective bargain- 
ing, maximum hours, minimum vrages, etc., as required by Section 7a of 
NIRA, any such agreement also contains trade practice provisions covered 
by numbered clause 2 of the proviso of Section 2 of the Joint Resolution 
extending NIRA, each of the two classes of provisions shall apoear in a 
separate title, viz: 

Title (a) Provisions covered by numbered clause 1 of the proviso 
of Section 2 ojf the Joint Resolution extending NIRA, viz, pro- 
visions putting into effect the requirements of Section 7a,, in- 
cluding ninimum wages, maximum hours and prohibition of child 
labor. This class of provisions is hereinafter referred to as 
"labor provisions". 

Title (b) Trade practice provisions covered by numbered clause 
2 of the proviso of Section 2 of the Joint Resolution extending 

9675 



—1 f^9-. 



'JIRA, viz, "tr-ide pr^.ctice provisicns ov-hiniting unfair com- 
petitive practices which offend r.gainst existi'iir; lorr^ including 
the antitrust la'vs, or ■^hich constitate uiif-^lr notliods ^of conpe- 
titinn, under the Federal Tr-.de Coniiission Act, rs emended." 

The propommt of an;/ such proposed psreement for voluntary indus- 
trial cooperation nay file simultaneously therevjith, at the office of the 
Federal Trade Coninissicn, any other provisicns, viz, provisions not en- 
titled to exemptions under either nuiaoered clause 1 or numoered clause 
2 of the proviso of Section 2 of the Joint Resolution extending NIRA, it 
"being understood that such provisions are submitted for aporoval of the 
Cora.ission under its trade practice conference procedure, 

2o Promptly upon the filing of a proposed voluntary'' industrial 
agreement 'with the Federal Trade Commission, the Trade Commission shall 
refer the title containing "laoor provisions", to IJRA. IIRA shall consider 
such proposed labor provisions through a mechanism similar to that which 
it has used in the past, including a Labor Advisory Unit and an Indus- 
trial Advisory Unitj (set ^Jo in conference vith the Department of Labor 
ajid the "Department of Commerce, respectively), and the holding of open 
heai'ingSo As a result of such procedure, ITRA. shall in due co-orse deter- 
mine \7hether or not to recomme d approval of the proposed "labor pro- 
visions", 

3, Having made its decisionj IIHA shall return such provisions and 
recommendations, supported by a transcript of the hearings and its find- 
ings of fact, to the Trade Comiission, 

4, Ponding considera.tion of the labor provisions of the proposed 
voluntary industrial agreement b" NRA, the Trade Commission shall examine 
such agreement to see whether it ir.cludns a title containing trade prac- 
tice provisions covered by nuiabered clause 2 of the proviso of Section 2 
of the Joint Resolution extending NIRA. If the agreement contains such 
title the Com:.iission shall proceed after notice, hearings and other pro- 
cedure duly had to determine whether or not to approve or disap'orove the 
sane. If its determination shkll be in favor of disapproval, the Com- 
mission shall forthwith malce an order to such effect under authority 
delegated to it by Executive Order Ho,- 7192 of September 26, 1935, and 
specifically referring to such Executive Order, If the Commission shall 
favor approval of such trade practice provisions, the Commission shall 
transmit to the President the labor provisions ajid recommendation of NRA, 
if favorable, together with a sta,tement as to the Cofemissdon' s approval 
of the other provisions of the agreement, for the President's action on 
the labor provisions. The Commission shall await receipt from the 
President of notification of his action upon the labor provisions of such 
agreement and upon notification of such approva,! shall maice an order 
approving such trade practice provisions <jnde.r the authority delegated to 
it by the said Executive Order isO. 7192, and specifically referring to 
such Executive Order. After ap':)roval oy the President and the Federal 
Trade Commission, the a^iTeement shall become binding upon the parties 
thereto in accordance with its terms. If the Commission shall be notified 
by the President that he has disapproved the labor provisions of such 
agreement, the proponents shall be at liberty to request the Commission 

9675 



-153- 



to consider such trade practice provisions mider its trade practice . 
conference procedure as herein "below mentioned or to withdraw the same. 

5, The Federal Trr'de Co'^imission shall ha.ve physical custody of 
completed voluntary agreements. 

6. Wliile the lahor and trade practice provisions are •under consid- 
eration, the proponent of the agreement may submit to the respective 
governmental agencies considering them modifications of such provisions 
or may agree to proposed modifications. Applications for amendments 

after approval shall "be handled in the same manner as original applications« 

7o If proponents of a voluntary agreement for industrial coopera- 
tion file with the Trade Cominission under NIRA e::tended, a title contain- 
ing la.bor provisions and also a title containing trade practice pro- 
visions covered "by momocred clause 2 of the proviso of Sf=ction 2 of the 
Joint Resolution extending NIRA and at the snjne tiiie file other and ad- 
ditional provisions not entitled to exemptions under said Joint Resolution, 
the Trade Commission shall proce-d to act upon such other and additional 
provisions under its established trade practice conference procedure, 

8, Proponents of an agreement for voluntary industrial cooperation 
may, if they so desire, submit to the Trade Commission trade practice 
provisions which are covered by numbered clause 2 of the proviso of 
Section 2 of the Joint Resolution extending NIRA for consideration and 
action by the Comnission under the trade practice conference procedure, 
rather than iinder illRA extended, it being understood that the approval 
by the Trade Comnission under that procedure does not carry the exemption 
conferred by the Joint Resolution extending iTIRA. Where such trade prac- 
tice provisions are submitted for considerption and action under the 
trade practice procedure, they need not be accompanied by labor pro- 
visionso 



)675 



Form 3 3- A 



154 

A??31JDIX X 
•DOCUI.ElvTS TO 3^ SICi/JTTED WITH CODHS 



Already 
SuDniitted 



Heeded 



1. 12 co-)ies of code 

2. 4 copies of conplpted A"") Plication Form. 

3. 7 copies of constituion and b.y-l-y-s of 

the Trade Associption. 

4. 12 copies of letter of transr.itt.^l , inclr.ding 

aiiy statement or discussion of conditions 
in the industry, and the relation of pro- 
visions of the cod' to those conditions. 
(4 must he signed. ) 

5. 3 copie3 of list of members of association, 

i n c lu J. i ng addr esses. 

6. 7 copies of certified copy of I'linutes or 

other authorization of association 
iiuthorizinff the "presentation of a codn 



IJ.B. One copy of the fi\''e a^ttached application forms may oe retained for your 
files. 



SFCTIOIT I. 

SECT ion II. 
SFCTIOII III. 



SECTION IV. 
SECT I Oil V. 

SECTION VI. 
SECTIOj VII. 
SECTION VIII. 
SECTION IX. 



,.. l.-E.->OHAIIDUia OF CODE FORI-I 
Title and Preamble. 
Definitions of Scoie of Industry and Terminology of Code. 

Labor Provisions: 

A. Mandatory Penuireraents of Industrial Pecovery Act. 
Part 1, Section 7 (a). 

B. Prohibition of Child Labor. 

C. '"^age Pates. 

D. Hours of TJork. 

Provisions regarding Trade Practices. 

Descri-otion of Industry self-government agency and its 
reQ|iiirements. 

iiandatory provisions of Section 10 (b) of Act. 

Provision for Liodifi caption. 

Effective date. 

Signature. 



-155- 



APPLICATION FOR PRESENTATION OF A CODE OF FAIR COIIPETITION 



To the 



NATIONAL RECOV£RY ADMINISTRATION 

Code Record Section 

V/ashington, I),C, 



General Instructions 

1, Four copies of this Application for Presentation of a 
Code of Fair Competition must be. filed in the prescribed form 
"by an authorized representative of a trade association or an 
industry, 

2, Application forms may he secured from the Code Record 
Section of the National Recovery Administration either ''oy writ- 
ing for them or calling in person, 

3, The Code Record Section will furnish assistance in pre- 
paring applications. 

4, After an analysis of the application the applicant will 
he referred to a member of the Administration staff to review 
the Code and prepare it for presentation to the Deputy Adminis- 
trator who will be assigned to conduct the Public Hearing. 

5, Industries should not iinduly delay the filing of an 
application or a code because of an attempt to secure accurate 
data as herein indicated. ViTnere no statistics are available, 
estimates p.tq desired, 

6, "ilrienever deemed necessary by an i ndustry on account of 
peculiar conditions tnerein, the application may be accompanied 
by a statement discussing those features of the industry and the 
provisions of the proposed code designed to meet these problems. 



Form 191. 



9675 



-156- 



Eelease No, 504 



N.2.A. Office Classification 

General # 

Specific # 

Cross Index 



NATIC'NAl R£CCV£RY iUDLl HI STRATI ON 
Information Requested on Industries, Industrial Groups, and Trade Associations 

Part I - Industry Inf orraati "n 



* * * 



Filing Code 
Address 



City and State 



Date Established 



A. IlIDICATJi] PUlTCTICil OF BUSINESS RSPRESENTED 



I'.ianuf ac tui'e r s 



Fnolesalers, Jobbers, Brokers 



Retailers 



Contractors (Building) 



Service 



Mining 



I Transportation 



3. PRODUCTS OP IIIDUSTRY 

Briefly describe products, products, or services. 



2. (POR IvIAFUPACTUREBS OIILY) : Brief a-y describe product, products, or 

services of other industries v/hich are competitive with your products 



-157- 



Release No, 504 

C. SCOPE or INDUSTRY RilPR'CSE-JTJiD IN APFLICATICIJ 



National 



Re^^ionpJ. 
Includim 



State 
J Name _ 



Local 

Includim 



D. SIZE OF INDUSTRY 

(Use estimates ^iien exact 

fig-ares are uno'btaina'blen ) 1928 

1, NomlDer of concerns 

2, Aggregate r/amber of employees 

3, Aggregate invested capital $ 

4, Aggregate annual sales or produc- 
tion, in dollars or units $ 



5, Aggregate production capacity, by 
units or dollars (for manufactur- 
ing industry only) $_ 



(As of December 31) 



1929 



$. 



$. 



(NuT3: Uce the sane basis in riiis^/ering numbers 4 and 5) 



1951 



19.32 



1. Nujnber of concerns _ 

2» Aggregate n'omber of employees _ 

3, Aggregate invested capital $_ 

4, Aggregate annual sales or produc- 



tion, in dollars or units 



$. 



5. Aggregate production capacity by 
units or dollars (for manufactur- 
ing industry only) $_ 



(NOTE: Use the same basis in ans-rering numbers 4 and 5) 
Form 191 - 547 
9675 



1930 



1933 



-156- 

Eelease Ko. 504 

TRAPE ASSOCIATIONS 

!♦ List the National Trade Association or Associations representa- 
tive of ^onr inc'ustry* 

Name Address Year EstalDlished 



ao Is Association organized on a national or a regional or a 
comoined national and rej'^ional basis? Briefly describe organiza- 
tion structure of your Association. 



"b. If the applicant represents more than one Association. 
Fart II should be filled in for each separate association joining 
in inrMng the application, and a comprehensive report of all com^ 
prjrable data as asked for in Pai't II should be submitted. 



Form 191^547. 



5675 



-159- 
Release He . 504 

HATIOITAL EEQPJOM ADMINISTIIA.TIQM 
Fart I I " T rade A ssociation Information 
* * * * 



N.R«A. Office Classification 

Industry 

Code tj^ 



Cross-Index 

Not to "be filled in by applicants 



A. HBPEESENTATION OF ASSOCIATION , 

Total Concerns in Industry (Approximate) on 

Total Concerns - Ivlembers 

(Month) 
Total Concerns - Non-mera'bers 



on 




1933 


1953 


(Date) 




1933 



(Iv'onth) 



By dollars or units percent 
of Total 



Total Volume of Industry (Year of 1932) $ lOQ^j 

Volume of Members (Year of 1932) $ ^_ 

Volume of Non-Members (Yeai^ of 1932) $ ^ 



B. OFFICERS OF ASSOCIATION 



Name Office Held Concern 



C. CQI.MITTEF AUTHORIZED TO PPJJ]SENT CODE TO N.R,A , 

(indicate Representatives of Associations if more than one) 
Name Office Held Concern 



(NOTE: Attach copy of resolution or other action taken authorizing 
Jjorm 191-547 applicant (s) to present code. 
9675 



-160- 
Helease IJo. 504. 

D. STATISTICS 

SulDmit spmples of a.11 forms used in gathering statistical data. SuId- 
mit the latest results of any statistical information received, in- 
dicating for how many years previous these statistics are available. 
Answer the following: 

a# Total merahers reporting statistics 

h. Total non-memhers reporting statistics 



c. Percentage representation of statistics 
according to volume of all concerns in 

the industry, 

RemarlisJ 



E. CONSTITUTION Al^TD BY-LAWS .'. ■ 

Submit seven copies of constitution and "by-laws of the association or 
associr.tions submitting the code. 



Date -_ . Sif.nature 



(Turned) 



Form 191-547, 



9675 # 



OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 
THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, established the Division of Review of the 
National Recovery Administration. The pertinent part of the Executive Order reads thus: 

The Division of Review shall assemble, analyze, and report upon the statistical 
information and records of experience of the operations of the various trades and 
industries heretofore subject to codes of fair competition, shall study the ef- 
fects of such codes upon trade, industrial and labor conditions in general, and 
ot.ier 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. 

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 were produced by these secticns 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 
spjnscring organizations, the conferences, negotiations and hearings which were aeld, and 
the activities in connection with obtaining approval of the code; the history of the ad- 
ministration of the code, covering the organization and operation of the code authority, 
the difficulties encountered in administration, the extent of compliance or non-compliance, 
and the general success or lack of success of the code; and an analysis of the operation of 
code provisions dealing with wages, hours, trade practices, and other provisions. These 
and other matters are canvassed not only in terms of the materials to be found in the files, 
but also in terms of the experiences of the deputies and others concerned with code formation 
and administration. 

The Code Histories, (including histories of certain NRA units or agencies) are riot 
mimeographed. They are to be turned over to the Department of Commerce in typewritten form. 
All told, approximately eight hundred and fifty (850) histories will be completed. This 
number includes all of the approved codes and some of the unapproved codes. (In Work Mate- 
rials Nc_ 18, C ont ents of Code Histo rie s, 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 c nstitute the material officially submitted 
to the President in support of the recommendation for approval of each code. These volumes 
9675—1 . 



- 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 
recoinniendations 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 
Materials Series) have been made. These are listed below, grouped according to the char- 
acter of the material. (In Work Materials No_ 17, Tentativ e Outlines an d S ummaries of 
Stu dies in Proc ess, 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 

Construction Industry and NRA Construction Codes, the 

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 Income, A study of. 
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 
Statistical Background of NRA 

Textile Industry in the United Kingdom, France, Germany, Italy, and Japan 
Textile Yarns and Fabrics 
Tobacco Industry, The 
Wholesale Trades Study, The 

9675, 



- iii - 

Women's Apparel Industry, Some Aspects of the 

Trad e P ractice St udies 

Commodities, Information Concerning: A Study of NRA and Related Experiences in Control 
Distribution, Manufacturers' Control of: A Study of Trade Practice Provisions in Selected 

NRA Codes 
Design Piracy: The Problem and Its Treatment Under NRA Codes 
Electrical Mfg. Industry: Price Filing Study 
Fertilizer Industry: Price Filing Study 

Geographical Price Relations Under Codes of Fair Competition, Control of 
Minimum Price Regulation Under Codes of Fair Competition 
Multiple Basing Point System in the Lime Industry: Operation of the 
Price Control in the Coffee Industry 
Price Filing Under NRA Codes 

Production Control Under NRA Codes, Some Aspects of. 
Resale Price Maintenance Legislation in the United States 

Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. 
Trade Practice Rules of The Federal Trade Commission (1914-1936): A classification for 

comparison with Trade Practice Provisions of NRA Codes. 

Labo r Studies 

Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-1935 

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 
PRA Census of Employment, June, October, 1933 
Puerto Rico Needlework, Horaeworkers Survey 

Adm i nis t rativ e S tudies 

Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con- 
ditional Orders of Approval 

Administrative Interpretations of NRA Codes 

Administrative Law and Procedure under the NIRA 

Agreements Under Sections 4(a) and 7(b) of the NIRA 

Approved Codes in Industry Groups, Classification of 

Basic Code, the — (Administrative Order X-61) 

Code Authorities and Their Part in the Administration of the NIRA 
Part A. Introduction 

Part B. Nature, Composition and Organization of Code Authorities 
Part C. Activities of the Code Authorities 
Part D. Code Authority- Finances 
Part C. Summary and Evaluation 

9675. 



- iv - 

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 ] i 

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 and Evaluation 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 f NRA to Government Contracts and Contracts Involving the Use of Government 

Funds 
Relationship of NRA with other Federal Agencies 
Relationship of NRA with States and Muncipalities 
Sheltered Workshops Under NRA 
Uncodified Industries: A Study of Factors Limiting the Code Making Program 

Legal Studies 

Anti-Trust Laws and Unfair Competition 

Collective Bargaining Agreements, the Right of Individual Employees to Enforce Provisions of 

ommerce Clause, Possible Federal Regulation of the Employer-Employee Relationship Under the 

Delegation of Power, Certain Phases of the Principle of. with Reference to Federal Industrial 
Regulatory Legislation 

Enforcement, Extra-Judicial Methods of 

Federal Regulation through the Joint Employment of the Power of Taxation and the Spending 
Power 

Government Contract Provisions as a Means of Establishing Proper Econ mic Standards, Legal 
Memorandum on Possibility of 

Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com- 
merce Clause, Cases on 

Legislative Possibilities of the State Constitutions 

Post Office and Post Road Power — Can it be Used as a Means of Federal Industrial Regula- 
tion? 

State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis 

Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in 

Trade Practices and the Anti-Trust Laws 

Treaty Making Power of the United States 

War Power, Can it be Used as a Means of Federal Regulation of Child Labor? 

9675. 



THE EV IDENCE 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 comnierce. The industries covered by the Evidence Studies account for 
more than one-half of the total number of workers under codes. The list of these studies 
follows: 



Automobile Manufacturing Industry 

Automotive Parts and Equipment Industry 

Baking Industry 

Boot and Shoe Manufacturing Industry 

Bottled Soft Drink Industry 

Builders' Supplies Industry 

Canning Industry 

Chemical Manufacturing Industry 

Cigar Manufacturing Industry 

Coat and Suit Industry 

Construction Industry 

Cotton Ganaent Industry 

Dress Manufacturing Industry 

Electrical Contracting Industry 

Electrical Manufacturing Industry 

Fabricated Metal Products Mfg. Industry and 

Metal Finishing and Metal Coating Industry 

Fishery Industry 

Furniture Manufacturing Industry 

General Contractors Industry 

General Contractors Industry 

Graphic Arts 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 
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 establish:nents, firms, employment, payrolls, wages, hours, production capacities, ship- 
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports. 
They also include notes on the principal qualifications that should be observed in using the 
data, the technical methods employed, and the applicability of the material to the study of 
the industries concerned. The following numbers appear in the series: 
9675. 



- vi - 



Asphalt Shingle and Roofing Industry 

Business Furniture 

Candy Manufacturing Industry 

Carpet and Rug Industry 

Cement Industry 

Cleaning and Dyeing Trade 

Coffee Industry 

Copper and Brass Mill Products Industry 

Cotton Textile Industry 

Electrical Manufacturing Industry 

9675. 



Fertilizer Industry 

Funeral Supply Industry 

Glass Container Industry 

Ice Manufacturing Industry 

Knitted Outerwear Industry 

Paint, Varnish, and Lacquer, Mfg. Industry 

Plumbing Fixtures Industry 

Rayon and Synthetic Yarn Producing Industry 

Salt Producing Industry 



« 



I