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3 9999 06542 028 1

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OFFICE OF NATIONAL RECOVERY ADMINISTRATION

DIVISION OF REVIEW

THE CONTENT OF NIRA ADMINISTRATIVE LEGISLATION

PART D: ADMINISTRATIVE PROVISIONS IN THE CODES

by
C. W. Putnam

WORK MATERIALS NO. 35

Work Materials 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

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SPECIAL STUDIES SECTION
February, 1936

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OFFICE OF NATIONAL PECO^^EP.Y ADMINISTPJITION
DIVISION OF HE VIEW

THE CONTENT OF NIP.A ADI.ilNISTRJ^.TI^rE LE:>ISLATI0N

PAPT D: ADMINISTPATI\^ PRO'^ISIONS IN TI-IE
COI^ES

By
C» W. Putnam

SPECIAL STUDIES SECTION
February, 1936

9743

F H S '.I R D

The object of this study is to set forth in convenient form the
substantive 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. D-eppred by Ruth Aull, is con-
cerned with Executive and Administrative Orders and, in some cases,
Office Orders and Ilemoranda, legislative in nature; Part B, prepared by
Ruth Reticker, vfith the labor -provisions in the codes; Part C, prenared
l:>y Daniel S. G-erig, Jr. and Beatrice Strasburger, vrith the trade
practice provisions in the codes; Part Dj o'^eonred by C. \J, Putnam,
with the administrative provisions in the codes; Part E, prepared by
Ruth Aull, with the provisions of agreements under Sections 4(a) and
7(b); and Part P, prepared by Ruth Aull, with a type case: the Cotton
Textile Code. The work ^-'as under the general 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 re;^lation of industry
and trade. The theory of the Act was that through the sponsorship of
codes by trade or industrial associ=ations or groups, and through
voluntary agreements, such regulation would be cooperative with
industry and trade.

By Section 2 (b) of the Act the President was authorized to dele-
gate any of his functions and powers to such officers, agents, and
employees es he might designate or appoint. This power of delegation
was widely exercised and through the administrative activities of the
National Recovery Administration, established by the President under
Section 2(a) of the Act, 557 so-called industry or trade codes and 188
codes supplementary 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 number of agreements
v/as entered into under Sections 4(a) and 7(b) exclusive of the
President's Reemployment Agreement, based on Section 4(a), which \ras
"accepted" by more than 2,000,000 employers. The 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
terminated the existence of the codes, referred to the legislative
nspects of the code-malcing process in saying:

"It (the statutory plan) involves the coercive exercise of the
law-mal':ing power. The codes of fair competition "^hich the
statute attempts to authorize are codes of la^-^s. If valid,
they place all persons within their reach under the obligation
of postive 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 adrainistrrtive steps leading to approval, were less clearly
legislative, but the agreements under both Sections 4(a) and 7(b) con-
stituted, to the extent they were used, the detailed and substantive
expression of the legislative intent, Turtherraore, the position taken

9743

13 Wyjteg

oy the National Recovery Administration that the "ohrase "srjne effect as
a code of fair coi.iDeti tion" used in Section 7(b) referred to the fact
that the agreement when apioroved should cnrry the penalty provisions of
the Act, r-'ould, if sustained, tjive such a.Fv'eei-ients legislative aspects
indent ical ^^ith those of the codes.

In the administration of the National Industrial Reco\'-ery Act
many orders were issued which affected the actions or interests of per-
sons not connected with the National Recovery Administration or affected
the provisions 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 Nationp.l Industrial Recovery Board bear-
ing on the >idrainistration of Title I of the Act were, with a few excep-
tions, issued under the authority of the Act itself or ■'jjider the delega-
tion of power permitted by Section 2(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 guidance
of the personnel of the organization or for the ouroose of estahlishing
parts of the organization. Some of these orders nevertheless contained
provisions or requirements which directly affected code provisions or
indicated requirements uoon members of industry and in their scope seem-
ingly may be called legislative in nature.

It will be observed thp.t the -orovisions of the National Industrial
Recovery Act constituted a very snail portion indeed of the great
volume of administrative legislation under the Act. The substance of
the administrative legislation is to be -found in documents formulated
from various tj^/pes of administrative actiorio

The study is not concerned with evaluation of this administrative
legislation; it is not cone "-rned with evaluation of its consequences.
Such issues are treated in othor studies. This study is confined to a
statement of the content of the NIFA administrative legislation.

At the back of this reioort a brief stateme'it of the studies under-
taken by the Division of Review will be found.

L. 0. Marshall
Director, Division of Review
February , , 1936

11
9743

- CONT OF IJ.I.R.A. ADHINTSTJUTI^/E LEGISLA.TIOH -

PA3T D.
Adriinislsrative Provisions in the Codes

TABLE 0? CQIITENTS

INTEODUCTION,

I. THE C03E AUTHORITY SYSTElil.

A. SMALL CODE INDUSTRIES.

1. INTRODUCTORY. PAGE

(a) A Code Authority for Each Code 2

(h) A T.^nDical Small Code-Industry 2

(d) Three Types of Code Industries 3

2. SHALL CODS INDUSTRIES.

(a) TTuinber of '^mrtloyees 3

("b) ProiDortion of Concerns to EiriToloyees 4

(d) Administrative Results 5

B. LARGE UinT,ARY CODES.

1. OUTSTAllDIKG E:CAI.IPLES.

(a) Basic Manufacturing Industries 6

(d) Size of Concerns ImiDortant 6

C. LiLRGE FEDERATIONS.

1. FUl^^CTIONAL DIVISIONS.

(a) Su-D"olernents 8

(o) Other- p-^oduct Divisions 8

111
9743

TA3I^_0F CONTENTS
(Cont'd)

2. GEOGRAPHICAL DIVISIONS. PAGE

(a) Local Agencies 9

(0) State Regional and District Agencies 10

D. BORDERLINE AND SPECIAL CASES.

(1) Size 12

(2) Type of Organization 13

(3) Minor Variants 13

(4) Administrative Results 14'

II. PO\r_^RS AND DUTIES OF CODE AUTHORITIES.
A. GENERAL PO'^/ERS.

1. TO ADMINISTER THE CODE -15

2. ISSUE REGULATIONS 15

3. DIVIDE INDUSTRY 16

4. APPOINT .;DMINISTR.VTI^/E AGENCIES.

(a) Trade Associations & Autonomous Divisions .... 16

(b) Or^::anizr.tion of Agencies 17

(d) S'oecial Agencies 17

(e) Arbitration and Coordinating Con'iittees .... 18

5. INVESTIGATE AND ADJUST COMPLAINTS.

(a) Collection of Evidence 18

(b) Procedure at Hearings 18

6. COLI^CT STATISTICS ,19

9743

TA3 LS OF CONT E''TTS
(Cont'd)

PAOxE

7* BTIDGST EXPElfSES; PLAN Aim COLI^ECT ASSES SI 'lElTTS ... 19

8. AI'.IEIJDI'EjJTS, EXSlaPTIONS, STAYS Aiv^ n>TTERPPETATIONS .

(a) A'i.iendments 2G

(b) Exemptions 20

(d) Interpretatio'.is Pp

B. SPECIAL POw'SRS AND DUTIES.

1. POV.rSR TO SELL LABELS.

(a) Six SDecial Porters 21'

(b) Drastic Effect of Latels 22.

2, Il'ISPECTIOK OE ME13ERS' RECORDS 22'

5. DITTY TO SELECT A CON-^DEFTIAL AGENT 24'

4. ASSESS1:E;TT OF COSTS OE lUVESTIGATIOlIS AITD HEARIN&S. . 24-.

5. RICrHT TO COL'^CT LIQUIDATED DA 'AOES 25'

6. DUTY TO ;:AIvE SPECIAL FEPORTS 26

(a) 3y Industrv Men'bers to the Code Authority .... 26'

(b) Reports from the Code Authority to IJRA ..... 26'

(d) Dela?A in Reporting 27

C. DISCRETIOU ALLO\iED CODE AUTHORITIES.
1. EXTPJ]iIES OF DISCRETION.

(a) Subject to I\TvA Disa.Dproval 27

(b) More Supervision in Later Codes 28

(d) Nature of Powers 29

(e) Powers not Fully Exercised 29

9743

(Cont'd)

2. NORJvlAL DISCRETIOIT. PAGE

(a) Code Authority Exceptions on Llinor Points ... 30 .'^

(b) Similar Provisions in P.elated Codes ,30. •

(d) All Po^Ters Linited "by I'TIA. Interioretations . . . "3^

III. IIETHOES OE SELECTION OE CODE AUTHORITIES.
A. TRADE ASSOCIATIOII CONTROL.

1. COIITROL BY OirC TRADE ASSOCIATIOII.

(a) Ap'oroval Required by TIRA 34

(b) Balance Between Efficiency and Democracy ... 34

(d) Details of Choice by Trade Association .... 34

(e) Temporary Association Code Authorities .... 35

(f) Federated Trade Associations 35

2. T.iO OR riORE ASSOCIATIONS COITTROL.

(a) Examples 36

(b) Effect on Hinority Representation 36

B. GE:teRAL INDUSTRY EDUCTIONS.

1. DEIiOCPA.CY NEEDED.

(a) Not Ensured by Trade Associations 37

(b) Promoted by Elections 37

2, TRADE ASSOCIATION IN:^LUE'i'CE.

(a) As a Political Party 37

(0) By Supervising Elections 38

Members of Code Authority

9743

TAJ3I£ 0? CONTEN TS
(Cont'd)

3. VOTING COiroiTIOIIS. PAGE

(a) Suffrage Limited to Assenting K.emlDers ^8

("b) Weighted Voting . « 39

(d) Administrative Results 40

C. PROPORTIONAL Pj:P"cj:SENT.,\TIOi: GUARj\l>TTEED.

1. GEirPJlL PRINCIPLES.

(a) Major and Minor Groups Represented 4]_

(b) T^/pes to be Discussed 4]_

2. GUARANTEED REPRESKTTATION FOR NON- ASSOCIATION I'.aNORITIES.

(a) Importp.nce of Minorities 42

(b) Methods of Selection 42

3. EXTHA-IIlDL^STRY "EPRSSENTATION.

(a) Administrative M.embers •43n

(b) Labor Re-oresentation 44

(d) Re-ore sentatives of Other Code Industries .... 44

D. MINOR METHODS.

. 1. APPOINTIffiNT 3Y !IRA ^^

2. APPOINTl'^NT 3Y DIVISIO^^AL CODE AUTHORITIES.

(a) Simple Appointment 4.g

(h) Double Appointment 4g

(d) Other ImRA Solutions ^n/ ■

Vll

9743

- APPElvIDIX -

1. Summary of G-eogranhical Agencies,

2. Tallies of Snecial Po-vers.

3. Lists of Codes Containing Rare Administrative Provisions.

4. Text of Common Administrative Provisions.

5. Explanation of Charts of Administrative Provisions.

6. Charts of Administrative Provisions.

VI 11

9743

3CNTENT OF N I 2 A .ADi/ilNISTilATITE LEGISLATION

PART D. ADMINISTRATIVa PHOVISIONS IN TILS CODES .

INTRODUCTION

Section 3(a) of the National Industrial Recovery Act authorized
the President to approve "codes of fair competition" for industrial '
groups. It did not specify wiio s'lould draft or administer such codes.
The policy of the Act, however, (as declared in Section 1) was "to
provide for the general welfare by promoting the organization of in-
dastry for the purpose of cooperative action among trade groups, (and)
to induce and maintain united action of labor and management under ade-
quate sanctions and supervision." Accordingly, tlie National Recovery
Administration invited trade and industrial groups to submit drafts of
codes \7laich should provide for an industry committee to help adminis-
ter . the code.

Such codes were revised by NRA after consultation with labor and
consumer representatives. Each such code contained a set of "adiTiinis-
trative provisions" wliich established a "code authority," defined its
powers, and provided for its selection. These administrative provi-
sions resembled constitutional legislation for each industry. Tlieir
terms were subject to interpretc?.tion and control by VBA administrative
orders. Their content varied v/idely, since it was adapted to the
needs and desires of each industrial group.

In general, code authorities were to exercise advisory powers
over a wide field and were held responsible for the ministerial details
of administration, (such as conducting elections and receiving reports
on prices and employment). Tliey were selected by and from industry
members, all or x^art of whome might act through trade associations.
Tlieir impcrtance varied, of course, with the size of the industry.

Tliis report will summarize the content of these administrative
provisions adding enough description of surrounding circumstances to
explain the effect of the various rules. In the aggregate, tliese ad-
ministrative provisions set up the machinery for united action by in-
dustry and labor under gcvernment supervision. Tliey carried the co-
opera-tive regulation of industry to a new high point.

974

•7

CONTEITT C? I-T I H A ADMIITI3T2ATIVS L3GI3LATI0i'I

PilRT D
ADMINISTRATIVE PROVISIONS III THE CODES

I. THE CODE AUTHORITY SYSTEM.

A. SMALL CODE INDUSTRIES. .••••■

1. INTRODUCTORY.

(a) A Code Authority for Bach Code.

Rales need men to apply them. To carry out the con-
ception of self-government of iijdustry NPA approved the selection of
nu-nerous industry committees (*)usually called Code Authorities to ad-
minister their codes under I^lRA supervision. Each industry selected
its own Code Authority and raised funds to pay its expenses. Each
code delegated certain ppwers to its Code Authority (subject ta NRA
policies), indicated a method of selection, and defined tlie concerns
which were subject to its administration. (**)

(b). ■ A Typical Small Code- Indus try .

Tlius, on November 8, 1933, President Roosevelt
approved Code No. 188 for tiie Ladder Manufacturing Industry. Article
VI - Administration^ provided: "To further effectuate the policies of
this Act a Code Authority is hereby set up to cooperate with the Ad-
ministrator in the adm.inistration of this Code. The Board of Trustees
of t!'ie American Ladder Institute, together with such (non-voting) re-
presentatives as tiie President or Administrator may designate

is hereby designated as such Code Authority."

Aiiiong t'ie pow-ers delegated to this Code Authority
was the riglit to require statistical reports. It could, therefore,
engage a staff to receive such reports. Like all Code Authorities it
raig.it be authorized to investigate and adjust complaints of violation
of its Code, so could appoint a complaints committee for that purpose.
The industry was defined as including all concerns engaged in the
manufacturing and selling of ladders and ladder products in the
United States. Eorty-two concerns employing 560 workers became members

(*) A few codes use such terms as Supervisory Agency, Recovery
Coraraittee, Control Comiiittee, or Emergency Com:nittee to
designate similar agencies.

(**) Code Authority powers, and methods of selection will be
treated in subsequent sections.

,9743

-3-

of the industry -under this definition. In 1923 "th.ere had been 50 con-
Cijrns end 950 employees. All concerns (*) coming v/ithin the definition
were subject to this code and to this Code Authority whether or not
they were members of the American Ladder Institute.

(d) Th.ree Types of Code Industries .

Small unitary , large unitary and federated .

The Ladder Manufacturing Industry was decidedly
small, and its organization might be described as unitary since one
Code Authority did all thie work of a-irnini strati on, without establisxiing
either product or geographical divisions. On these points it was
typical of the small ITRA. codes which constituted at least three-quar-
ters (**) of the -577 "nuiTibered" codes. That three-quarters, however,
covered less than one-quarter of the 24 million employees (***) under
NSA. The other three-quarters of industry was covered by 70 "major"
codes, each containing at least 50,000 employees. The three largest
covered over one million workers apiece. ?rom the point of viev/ of
organization these large codes may in turn be divided into two classes.
One group may be described as unitary industries, usually composed of
large firms, which, contrived to administer their codes with only one
Code Authority. Tlie other group may be described as federated indus-
tries. Administration of these federated codes was parcelled out to
numerous subordinate (divisional) agencies. N.H.A. applied special
names and numbers to these divisional agencies and to the sub-codes
whic: they adi'nini stored, but in essence each one resembled a small
industry which had lost its "'onitary" form of government by "oniting
with other small industries into a federated code,

2. SLJILL CODE INEUSTSISS (UHDSil 50,000 Si;iPL0Y33S) .

(a) Number of Employees .

The bulk oi these 507 numbered codes employed a
simple unitary organization appropriate to t.ieir small size. Some, to
be sure, were subdivided to a considerable extent. Taus, No. 148,

(*) In a vory few codes concerns were not subject to the rules

unless they had assented to the code. Daily Newspaper Pub-
lishing, No. 238, is the leading example of such "assent"
codes.

(**) Cur figures are so rough and incomplete that it is difficult

to draw exact lines between these groups. Employment dropped
sharply after 1928-1929 and recovered sharply under most
codes, but in varying degrees for eac]i industry.

(***) Tlie size of a coda industry can be measured by either the
number of employees, the number of firms, or the volume of
production (expressed in dollar volume of sales, number of
tons, pounds, etc., or dollar value added to product.)
Since NRA was largely concerned with labor, the number of
workers employed in an industry is the most common criter-
ion of its size.

-4-

Pyroteclmic Manufa-cturing, with only 37 members and 1,350 employees, was
solit into three product divisions (Commercial Fireworks, Display Fire-
works, and Fasees) each of which had its special representatives on
the Code Authority. The number of employees in each industry varied
from year to year, but IT.H.A. records (*) indicate that almost 300 of
tliesG industries employed not over 5,000 workers between 1929 and 1933.
Several employed less than 100 woricers at some period during those
years. Not over 200 employed from 5,000 to 50, 000 workers.

(b) Proportion of Concerns to Smployees .

The number of concerns in each industry and the
number of employees per company varied even more widely than did the
number of workers. At least 34 codes had less than IC cembers. By
contr.T.st, Retail Jewelrj'' (No. 142) is credited with 19,998 employing
concerns. The following table will illustrate th.e various types of
variation. Tlie term "average concern" is deceptive in such tables. In
nearly every case a few large companies collaborp.ted with numerous small
ones. Large companies malcing or sellin-^ an article as a small side-
line would count on suc/i averages as a "small" company.

TABLE 1

SAi..PL5:S 0? 2A.T10 OF mJivDEix C
Name of Code

ICRKEHS TO }rUI.3E?.

OF CONCERNS

No. of No. of

Average No.

Concerns lorkers

of '.Yorkers

Per Concern

197 - He tail Farm Equipment 12,242 30,894 2.5

340 - Liotorcycle I.lanuf acturing 2 777 388.

394 ~ Lightning Hod Manufacturing 15 75 5.

Each small code represented the desire of a trade
association to enjoy its own code independent of other groups. Appar-
ently, tiiis desire for autonomy at tlie expense of economy is normal at
the prferent stage of industrial organization in Anerica. More than
5,000 codes were originally submitted to N.H.A. , th.e vast iiiajority by
small industries. Heducing this number to 576 was one of the most
difficult tasks of N.H.A. Most of it was achieved by federating the
most cooperative industries into larger units, now listed among the 70
code industries of 50,000 or more employees. About three-quarters of

(*) All following figures from Research and Planning surveys.

9743

industry was intes^rated in this manner. Tlie 507 small codes represent
t"e -JLii- integrated (*) residue,

(d) Administrative Hesults .

Sacli sucn small code was relatively easy to ad-
minister when considered by itself as a separate unit. As a mass, how-
ever, they clotSSed the wheels of N.H.A. administration. During the
period of code approval, their existence multiplied the number of
TJublic learings. After approval, their labor and trade practice rules
displayed so many variations tliat they challenged rational tabulation.
Overlapping of jurisdiction was common, and the multiplication of Code
Authority offices built up the exj-iense of code administration to a
prohibitive sum. Some consolidation of these small units will be a
necessary preliminary to any further progress in industrial government.

(*) An'^ther residue, of course, were the codes still awaiting
approval in I.iay 1935,

9743

9745

-5-

E. LA RGE Ul^ITARY CODES ,

1. nUTSTAlIDIIIG SXALIPLES.

(a) Basic Maniif a.c t ur in^ Indus tries.

■ In tli. 70 largest code industries two types cf organ-
iii.T'.tion vrcr> distin;:;,"a.islm"blc , the imitary and tlic fedrratcd, Hot all
codes fell squarely within cither jSirouiD, hut the tyi^ica.1 extremes
dilfcrcd so widely fro:-;; one another and from the small code industries
that the cistinction is worth noting. At least 20 code industries wore
clearly imits.ry. Outstanding examples a,rc as follows:

T13LE 2

AVERAGE SIZ:

05^ COIIGEEIIS

17 CERTAIN LARGE I lAlITJTAC TURING COLES

Name of Code

401

174

1 -

3
44
16

Automohilc Manufacturing

Copper

Iron and •Steel

Ruhoer Tire Lr.nufacturing

Cotton Textile

Wool Textile

Boot and Shoe

~ '^^

hosiery

No. of

"To. of

Average No.

Concerns

Workers

of Workers
per Concern

447,000

6,000

64,000

3 , 500

388

420,000

1,000

75,000

1,800

1,381

433,000

400

588

151,000

200

818

206,000

250

853

130,000

150

(To realize the large size of such concerns vrc may note tliat the aver-
age num'oer of v/orkcrs per concern in 70 largest industries and Trades
v/as only nine )

( b ) giz^ of Qonccrns Im-'oortant

^11 these were mining or i.icQTjfacturing industries producing
staple goods in large f ctorics. This imiDlics tiia,t their memlDcrship
v/as composed of few hut largo cone rns. The size of the dominant cor-
porations was f^.r larger tnan the average size. Thus-, in Ruther Tire
Manufacturing, 4 cone- rns proouced 75'yo of tnc volume; hence must have
employed some 50,000 workers "between them, or l.'\0C0 each. The other
36 firms averaged less tlian 1,000 each. These differences are signifi-
cant, "becaiise the politico.l •'Tower of a large concern in industrial
goverru.ient was even greater tiicin its size v/ould indicate. Since it
stood to gain or lose more th--:.n a snail comcern it was justified in
employing e sv^ecialist in code affairs, ae.d could afford to send him
to distant meetings. At such meetings a ma.nagcable number of high-
grade representatives could discuss administrative matters direc';ly
instead of corresponding about them vdth geographical or fijnctional
divisions. As a result of this situation, those unitary industries
v;crc well-organized even "before the a'-)proval of the code. In the
majority, there ■ -as one dominant trade association v/hich was given a
■prominent part in code administration.

9743

( c ) Unit ary Apparel Codes*

Another t;;/pc of "UJiitary ^.nd vigorous c^de government is ex-
C;mplified "by certain apparel industries • These were not composed of
very largo firms, as a rule, nor organized into single trade associa-
tions. Tncir raeml3ership and problems, however, were largely concen-
trated in or around Ticyi York City, (Cotton Garment Industry v/as an
exception, v/ith only 3fo of concerns in New York City). Organized
labor v/as us\ially represented on these Code Authorities, which were
very active in sec-.iring labor compliance. IT.R.A. labels and routine
inspection of members' records were freely used. "IThatever branch
offices tney set up in non-union centers, such as Chicago and St. Louis,
rcprcsoiited the Compliance Department of the, central Code Authority;
they were not chosen by local areas and did not undertake general ad-
ministrative duties. Similar organizations can bo f^und in codes of
less than 50,000 employees. The fallowing table shows the chief 'ex-
anrples of this type of code.

TABhE 3

SIZE OF CONCERNS III APPAREL CODES

Apparel Codes — v e ^^^5 0,000 Emp 1 o y e e

Ho, & Name of Code

15 - Men's Clothing

Employees
i n Thous ands

150,000

23 -

Undcrwear

50,0/^0

64 -

Dross Manufacturing

88,000

118-

Cotton Garment'/

2oa,ooo

373-

Infants & Children's ■
Wear

A. .75,0^0

Goat a.nd Suit

29.000

151-

Millinery

26, COO

363-

Men' s Neckwear

3,000

164-

-Knitted Outcrv/ear

28,000

194-

Blouse Ci b.iirt

3.000

No. of

No.

of .

Labor and

is Concerns

Workers

Labels

(per concern)

• 3,400

Labor repre-
sentatives and
labels .

600

■ 4,080

3,800

:..... 1,320

- -2,600

n - '

1,500

750

Labels

. 100

Labor repre-
■ sentatives

and

labels

9743

-8-

Ce L.vRaE r£DE?vA Ti c::s.

1. rUNCTIOj.'AL DIVISICl'JS.-

( a) Su"polements »

At the other extreme from the compact ajid "unitary code
industries were the sprawling federations. These '-/ere composed of
fimctional or geographical divisions nhich reported to IIHA through a
Basic or iJatiom.l Code Authority, liach such division was administered
by a Code Authority selected hy division members, which commonly
employed a secx-etary and appointed a complaints committee. It worked
with and upon industr:'- members v/hile the Basic Code Authority dealt
'-dth KRA, Six federated industries contained 175 of the 201 supplementary (*)
code industries in "b\RA»

tail::] 4

jUi:3JR 0? supPLiii.iLrTS li SIX LARCri:sT f::d':.raticns

ilo . and ITaoe of Co'J.e

No . of I\To . of rlo . of

• Concerns- .1inplo:'/'ees Sup'^lements

8^- - ;?abricated I.letals

6,723

-13,000

105 - Automotive Parts 1,200

201 - '..liolesalin^j ^--o.OOO

2'^_u- - Construction

508 - ]?isliGries 5,000

3^^7 " LiachiiiGry a AllieJ. Pro- 778

c'-uc t s

79,000
'•.■.•60,000

150,000' 2,400,000

200,000

9':.-,ooo

10
23
21
12

206,700 ■ 3,6---6,000

175

(b) Other Pro-J.uct Divisions.

The

(*) iTPuA c.escribed these divisional codes as " suppleiaentary"

suo ■■l>:i.i-':nts recoived the nwnber of their parent code [plus a letter
T'. us, SurplGi.iont Ho. 1 of Fabricated Hetals, was No. 84-A, ivletal-
lie "all Structure. Supplement No . 5^1 was No. 34-B 2, Pile llaiiu-
facturin;. A few :.ivisions were established by sc")arate pamphlets
cculled aroendices and consolidations. T.hese were cotuited as
suo -ilenents. Concerns were subject to the Basic Code Authority

until

.;uo"::)lonent;

:.ry

code v/as aroroved for that .<:roup . IThen a

suj .^leLientary code was ap"oroved, its members reported to the Basic
Co'.\o Authority throu^^h the Supplementary Code Authority.

97-:3

-9-

Other .'indv.stries had an eoually elaborate set of "divisions" (*)
\."liich :v;ere not nrmioerec. Gu-opj.ciaents but vliich represented important
jroups.

TA3LS 5

.y-JtarLR Qi rivisio/S ii: ter^' iahoi; ccd2 i:"ustries

9 - Luiaber L Tiuber 17 "divisions", 5 "subdivisions"

120 -- Paper co Rilp 21 "subordinate" codes

237 - G-raplric Arts Id- "ind.;.stries" , subdivided re:.,ionally;

17 "National Product Grou;os"

Vrhorever supplements or di-visions existed the -oarent code was
called ti.e .Basic or Laster Code. Its Code Authority v;p,s selected from
its divisional members in various ways. As a rule it contained labor
rules a 'pliCcA-ble to tne './hole industry. The supplementary and divisional
codes were usually based on function; that is, thoy covered a group of
co.icerns ma-iUfacturin';-; t]ie Scuine product, sellin/'- the same conunodity or
performin." ohe sa.ie service. Individual methods for selecting divisional
code autiiorities were also set uo in each supplementary code, or in the
rules for eacl; functional division.

2. .GZOGHAPKICAL DIVISIOITS .

(a) Local Af.'encies .

Besides subordinate a",encies for fuictional 6-ivisions,
national Code Authorities, v/ith the ap- iroval of !TEA, set up a large
nuTiber of .'re o-;: rap: deal subdivisions(*'^) , eacli acu.iinistered by a subordi-
nate Cole Aut?mrity. There v/as no rule or uniformity as to the size of
such areas, Soi.ie C'^de AT--thorities divided the whole co-untry into two or
three districts; others set uo ten to twenty' '"re/iions" each containing
several States, w:iile others -out in a Code Authority into each '-if the
^^-8 States, sometimes . addin;- a sex)arate agency for such large metropo-
litan areas as New Yorh and Chicago . The most nuiuerous class of those
districts was set up by a few ;iant Retail Trades. Ea-ch one centered
in some city or tov/n and was called a local Code Authority. l^Io limit
v;as set oj the codes on tlie number which might be established. Sup-
plementary and divisional Code Authorities could also set up geographical

(*) Vfhere a group v/as given separate rules and a separate Code Autho-
rity iii the same T^amohlet as the Basic Code, ITRA reports and analyses
omit tliat division from the list of supplements, even thou h the code it-
self calls the cdvisional rules a "supplementary" code. Retail Kosher
Meat, in l^o . :>i-0, Retail Leat Trade, is an example, llo special mimbers
are assignee, to sa(.;h divisions. The codes themselves describe them oy a
variaty of names ana numbers.' Their Code Authorities report to 1\[RA
through the Basic Code Authority as do supplementary Code Authorities. Such
divisions are usually as large and as important as numbered supplements,
or even as munbered codes*
i*^) See list in Appendix

-10-

siibdi vis ions. The followinjT;: were actioall:/ set up jy May 27, 1935!

TABLE 6

Local A ,enciss of Nuiribered Co;".es:

4-..3

1S2

196

Retail Trade
Retail i:TMr{*)
V/holesale Tobacco Trade
Retail Food and G-rocery)

787
3-1-1
156

695

Vfholesale Food aiid Grocery)

Motor ''ehicle Retailin.^- 1".00

Local A^jencies of Supplpmentary Codes:

24^-— A General Contractin{;^
244^,B Paintin^r,- c": Paperiian^infi
2'^:'L— P Illectrical Contracting
24'i->-I Plmnbin;-; Contracting;;
287 A-lCoi.Ti.iercial Relief printin.^

314

325

360

464

i-AQ •

104

13::7

Total

• • •

3755

3279

( b ) State, Re;2:ion3,l arid District A^:encics ,

These also v/cre cor.iiaon in lar:;je trades or service industries •
Often, several ty .es of ^-eOi^.Taphical divisions were coubined as in

4o - I.Iotor Vehicle Retailing ' 54 State Advisory Committees

Local a'^encies av^thorized in' cities

109 - Cruslied Stone c: Gravel 16 Re^iional, 70 District and

49 State Agencies,

278 - Truclzintj State and Interstate Cormnittces

282 - Restaurant

State and District

123 - Structural Clay

5 Joint Re^^;ional .Comn'iittees,
43 Re.:,ional

These relatively few State and Re ■;ional unpaid committees v/ere
sometimes supplemented by full-tiiue supervisors who were sent out from
the IJationcil Code Authority office. The&e were used anong.
large codes in tne follov.'ing iiidus tries:

(*) No. 60 Retail Drucj, is technically -^ Division because its Code is
published in the same. -oanTohlet as ITo . 60, Retail Trade. Its administra-
tion is entirely separate, so it is usualTy treated as a basic code with
the s..uAe number of Retail Trade.

Q rfA T

-].l-

Ice

TAELZ] 7

ccd:.,s p-(0"idii;^ tor iidividual sup":rviso:is

"•-3 Re.'.ions

-v.-o2 - TiiOlesale To'3c.cco

20 Divisional Coc.e Authorities, each,
with a. Code Supervisor and one or more
x^e;;,ional Idrectors.
47 Hef.lonal Direc'cors

Codes imc.er 50,000 v/ori:ers with sirperviscrs:

153 - Liachii^G Tool C. 3quipi.ient 5 Zone S"irpervisor7 A, enciec

5 Zone Supervisors
(14-- Sub-Zone At,encies, 18 Trading
Area Coi-:.aittees)

219 - Bed -.in ■ h.anufacturin;

285 - Beaut;/ d Bi'.rher Sliop

Enui ....ont Su-3lies Tra.de

50 Zone Grievance Corajuittees, and
30 Zone Li rectors

11 Re'ional Coiiii.iittees , each with
1 attorney-niana.^er

10 Re^'lonal Coivuidttees, each with
1 Ref:ional Director

LP- 17 :Yr.eat plcur Liillin:,

( c ) Admini s trative Re suits of Federations .

"IThat ever, the systeu oi' divisions, these elaborate hierarchies-
obviously slowc.L down adiTiinistration . Duo partly to the prevalence
of small CO. ..earns engaged in' ihtrar-state" basiness the following codes
jroved unworhable and were suspended bv "xecutive Order lie. 6923.

TA3L:: 8

CODZS SUSPL1TD.ID 3Y :iRA BSPORL LAY 1955

a. Major Codes
297 - Advertisin,, Distributing
121 - Hotel

1^-7 - Lie tor Vehicle Storage cc Parliin
281 - Laundry
398 - Barber Shop, Trade

xjStablisliiiients Emoloyees

1 , 20
20,000
18,300

6 , 000
50,000

100,000
291,000
150,000
255,000
200,000

97d3

-12-

TAI.L:] 8 (covJt.)
CCI)E3 S-JSP-JITD::!) 3Y llilA BE70IS i.JlY 1955

!b. iviinor Cc6.es:

Us t 'il/l i slxnen t s Sm :)1 oye e s

2^1-0 - Advert! sin : Display

ICl - Cleanin. • c: Dye in

372 " Show Eeb^iilc'inc

:oo

4,500

8,000

1,500
50,000
40,000

Tiiis retreat from a y/ice field of accivity indicates the difficulty
of administerin-j such decentralized inc.ustries. In 1355 field super-
vision hy lRA was bein^: :.nau urated to meet these conditions. Lar^je
federations of industries seem tc be bettrr tnan unor;::£:'jiized small
codes, but they reouire s")eci;,l :/£LchinGry iot their control.

D. B 0ItD~:a.Ihi: Al^D SPLCIAL CASES .

1. SIZE

The most obvious borderline cases a;'Toear v/hen the line is
drav/n betv/een Liiijor code industries and minor code industries. ?ift/-
thousand ei.nloyeps v/as set as the miniiiHim for a major code to be
si._^ned by the President. If th; n^oiiber of employees v/as "normally"
less the code could be si- ned b /' the Ac'-ministrator, Production,
however, drop;;jed so far betv/ecn 1929 and 1932 and rose so rapidly in
1933 that it is difficult to say whx^-.t is the "normal" employment in a
^Iven industry.. Some inCus tries, moreover, (rayon weaving) are in-
creasing; each .^ear while othora (wool) are decreasin ;. Hence the
lower limits of the class of .lajcr industries iiiay exclude several
important industries and incrade some of lesser importance. Examples
follov; of extre:.:e decrease i:a emoloyment.

Table 9
Vol\iame of production in Codes Approachin;: 50,000 Worhers at Their Pealz.

ITamo of Coc.e

153 - Concrete Masonry
109 - Crushed Stone
103 - i.Iachine Tool
463 " Candy i.Ianuf acturin'

Thousand Thousa.nd Units of Pro- Units of Pro-

V/or]:ers \7orl:ers t.uction in
1928-29 1932-35 Thousands

1923-22

•:.i

20,

337

209

0.6 no fiures

:1.

duction in

Thousands

1952-33

no fi"^j.res

9743

-13-

2. TYPE GF ORGMIZATION.

While the distinction tetween unitary and federated code indus-
tries is most significant, certain industries do not fall squarely within
any group, in some cases this is "because the code itself is vague on this
point. In other cases, a code authority may be in process of transition.
Thus, Electrical Manufacturing was proposed by one association as a unita-
ry code. Towards the end of 1964: it had three supplements approved, and
was apparently intending to institute others (*), In its vigorous admin-
istration the Electrical Manufacturing Industry resembled a purely unitary
code. Similarly, Chemical Manufacturing Industry was planned as a fed-
eration but ceased to set up supplementary codes in August 1934, after
only three had been approved. This left the majority of its members di-
rectly responsible to the Basic Cpde Authority. Several large unitary
codes like Cotton Textile, and Iron and Steel had one or two small
"satellite" codes attached to them. These small codes were not important
enough to affect the character of the main code. Particularly among
small codes, one found alliances of a few products which were related in
somp. way, such as Candle and Beeswax, or Adhesive and Ink. The duality
of such codes was usually carried out in their organization.

3. MINOR VARIANTS.

Occasionally, the divisions were the real centers of power in an
industry. Thus in No. 287, Graphic Arts, and No. 330, Scrap Iron, the
divisions were called "industries" and the central agencies were "coordi-
nating committees." The Bituminous Coal Code, No. 24, set up 5 divisions
without any central agency for general administration. Similar conditions
prevailed in the following small codes; Coal Dock No. 337, and three Sup-
plements to a Fishery Code, No. 308. The effect was to have several code
industries subject to the rules of the same code, but not to any one Code
Authority. The usual hierarchy of agencies was also complicated by the
use of executive committees, which administered the code while the Code
Authority was not in session. This permitted a large Code Authority to
meet as seldom as once in three months. Such executive committees might
be set up in Code Authority By-Laws as well as in Codes. Important codes
employing this device were Fertilizer, No. 67, and Motor Vehicle Retail-
ing, No. 47. Occasionally, one agency was Code Authority for two codes,
as shown below:

Agency

Food and Grocery
Distributors' Council

National Editorial Association

Codes

186 - Retail Food and Grocery Code
192 - Wholesale Food & Grocery Code

287 A-2, Non-Metropolitan Newspaper

Publishing and Printing Code

287 A-5, Daily Newspaper Publishing
and printing Code

(*) The code authorities of these supplementary codes were to be appointed
by the trade association (National Electrical Manufacturers Asso-
ciation) which was the Code Authority for the Basic Code. This is
unusual and indicates that the unitary psychology was not extinct.

9743

-14-

Such situations occurred jusi oi'teh enou'-";!! to conius-e the student.
They did not infect code adiainistration as a v/hole.

ADi;iIlTISTR^.TIVE RESULTS.

Stripped of details and exceptions this analysis of KHA' codes
reveals: • '

(1) Onl,7 20 to 30 code industries — perhaps one-quarter
of industry —■* vdii ch were both lar e (over 50,000 v/orkers) and well
^nou^i;h or^^anized to require only ono Code Authority. In this ^r cup were
'fiorne of the', nior;t im:)ortan.t industries such as Cotton Textile, Iron and
Steel, and Automobile Manuiact\iring. Their . members operated lar/^e
factories Ouiployin^. hundreds of workers in each plant. The nuiiiber of
such members was onl^?- a fraction of the: immb.or in the less compact tra6.es
and service industries. Such industries v;ere v/ell fitted for control
by NRA procedure. They fulfilled the conception of en "industry" v;hich v/as
was current araph:; the' general public and in the NSA. They v/ere' not,
however typic-'d of code indusories as finally established.

■::>^-..;-.^

(3) The greater part of industry, perhaps one-half,^',
into 30 to 40 hu;;^-e federations, mostly trades and service industries".
The very lar.;es/ (*) industries, including Retail Trade, Construction,
Trucking, Petroieum, Lumber, and Restaurant, v/ere in 'this /^roup.
This does not mean that their members were large concerns. On the
contrary these industries v/ere composed of many thousands of small con-
cerns (averaging l.ess- thaii 9 employees per concern) and v/ere divided
and subdivided into h-undre^ls of local and functional groups. Self-
government for such industries, v/as difficult and even more difficult to
organize and supervise from l/Tashington, ' ..

(3) Five hundred or more small industries, (all with
less than 50,000 employees and the majority with less than, 5,000)
made up the remaining one-quarter of industry. Industry members de-
manded erodes for these small jro-jps, buL the niimber and variety of
their organizations prqved confusin to administrators and even more

so to students.

• J. ' ■ , ■ ■

Th-ese_ distinctions of size and or^^cnization are important in con -
edsering the problems of any one code or in Soudyin,. the orgazination -
of industry as a whole. The following sections en. Code Authority
Pov/ers and I.iethods of Selection v/ill frequently refer tc "small" and
"large" codes, although NRA r^dles and procedure applied to all Codo
Authorities regardless of the size of their industries.

(*) The first three in this group are crec itod v;ith a total of 5 million
employees. The total for the group' is estir.is,..ed at over 7 million
workers. Fi;..ures on the number of ei'tablishi^ients are too uncertain to
quote, but they i;iust be in the hnTidrcd' thouSc^iids .

3743

-15-

II, POVEP.S AlID DUTIES OP CODE AUTHORITIES.

A. GE ItEBAL F OWEES.

1. TO ADI,IIi;iSTEIl TIIE CODE.

A miniijuim of necessr.ry -oo^vers vrrs authorized "hy each code in very
general terms. The most common provisions authorized the Code Author-
ity to: —

(1) Administer the Code.

(2) Issue rules and reflations for (a) its own ;orocedurc,
(d) enforcement of code provisions.

(3) Divide the industry Into districts or product or^canizations.

(4) Appoint local Code Av.thorities and other Agencies.

(5) Investi :r-te <nnd adjust, complaints,

(6) Collect statistics from members on r)roduction and employ-
ment.

(7) Budget e:cpenses, plan and collect assessments.

(8) H.."ommend action on amendments, e::cQptions, stays and inter-
pretations. .

Subsequent orders and intororetations have added little to these
powers "by way of amplification. Certain observr>tions, however, may "be
made on their aoplication. The ;;enerrl duty of administering the code
included transmitting I'JHA instructions, engaging a paid staff, and
suggesting changes in the code. If these activities were neglected,
NBA State Compliance Offices would still administer the labor provi-
sions of the code, and such trade practices (*) as did not need any
further action by the Code Authority. Price-filing systems and uni-
form -orinciToles of cost accounting could not be enforced until the
Code Authority took the necessary "orelininary action,

2. Issue Regulations

Such rules were called code authority by-laws ar.d sometimes in-
cluded provisions dealing with methods of selecting future code author-
ities. Thus the by-lnws of the code a.uthorit}'- for the Scientific
Apparatus Industr^^, ap-oroved "oj IfHA administrative order 114-13, pro-
vided that the code authority should consist of president rnd rice-

(*) These offices handled a total of 137,000 labor complaints and
40,000 trade practice complcdnts.

9743

-16-

president of the association and the chairmen of nine sections of the
industry to he elected at a rueetint'^ of the entire industry. Methods
of voting within the code a-.ithority, might also he provided in code
authority hjr-laws, as v;hen the "by-lav/s of the code authority for the
Cordage and Tr^ine Industry (approved in ilRA administrative order IJo.
303-2) provided that no motion should carry without a vote of the .
code authority raerahers r/ho represented concerns ^-dth tno-thirds of
the net dollar sales of the industry.

Code authorities were a^lso authorized to issue regulations for the
administration of their codes. Such regulations couD-d "be disapproved
"by the Administration, hut were not submitted to liRA as a matter of
routine for aiDprovr.l hy administrative order. The hulk of such rules
dealt with ministerial details, such as the date a^id place of elections,
or the form in v/hich prices were filed. Occasionally these rules dealt
with more important matters, such as the weighting of votes, or the re-
presentation of special classes on code authorities. Thus General
Order #3 of the Retail Solid UHiel Code Authority provided that in divi-
sional elections one vote should he cast for each 500 tons of copI sold
and that one representative should he selected from each of three
classes of dealers: "rff iliated" , "eouii^-iDod" , and "unequi;o-oed. "

3. DIVIDE INDUSTRY

Code Authorities were allowed a free hand in dividing their indus-
tries into geograohicpl districts or grouping their members according to
products manufactured, commodities sold, or services performed. Some of
these grouos were indicated in each code under the titles of supplemen-
tary or subordinate codes, ajppentices, consolidations, "industries,"
or National Product Groups. Others, especially geographical divisions,
were set up rif ter the code v/as a'oproved. They were based, naturally,
on existing trade associations pnd their s'Dheres of influence. KRA did
not rttem;ot to im'oose any uniform "pattern of districts. Hence, some code
industries were divided into only two or three regions, others into one
district for each State, and stil"^. others subdivided into hundreds of
local (city of town) districts, IlcUiy industries, of course, were so con-
stituted that no divisions were necessary.

4. APPOINT ADLIIIIISIRATIYI] AGKJCI23,

( a) Trade Associations and Autonomous Divisions .

Practically ever;'- code authorized the Code Authority to delegate
its ,30w:n-'o "to such trade associations and other agencies as it deems
proT^er" (*)« Host late codes added a proviso that "nothing herein shall
relieve the Code Authority of its duties and responsibilities under this
Code, and that such trade associations ajid agencies shall at all times
be subject to and comply with the "irovisiovis hereof." TTherever geogra-
phical or functional divisions had bee;i S'.?t U3 in the code for electoral

(*) 84r-U, Bright Uire Goods ;:rnufrct-.ri;i- I^.dustry

9743

-17-

purposes their governirij^ "bodies, v/ere norriially appointed "by the central
Code Authority to execute the -provisions of the code, (*)• It was char-
acteristic of the code government that the same influential grouos uhich
had helped to draft a code should "be a-)pointed to administer it locally*

(h) Or^::aniza ti on of A;^?:encies »

normally such agencies dirolicated the organization of the central
Code Authority by engaging a secretary and setting u;o a complaints com-
mittee to investigate and adjust comjlaiiTts. They found fccts, trans-
mitted instri-ictions, and recommended measures to the parent Code Author-
ity for pro ■;,; itation to KRA. It wj-.s these local rjid functional agencies
which were ii close touch with' individual members of each industry*
Much of the success of code administration depended on the efficiency of
the liaison maintained bet^/cen national Code Authorities and their
scattered offspring,

Local complaints comnitteos and/or field agents could also be set
up in distant cities by the complaints committee of the National Code
Authority^. Unitaiy Code Authorities extended their activities in this
manner instead of setting up divisional agencies. Secretaries of such
conmiittees •7ere appointed and paid from the central office. Occasionally
a code (♦♦) specified that full-tiie supervisors should be employed to
guide and correct the activities of local agencies*

( <l) S-oecial Agencies ,

Besides its local" general agents, certain Code Authorities needed
special agencies to apply the provisions of their code. The nature of
these agencies deoended upon the industry''. Thus apparel codes frequently
authorized label agencies to issue labels, and committees on "design
pirrcy" to register and protect original designs. Construction codes
needed "bid depositories" to standardize the making and receipt of
bids. The Struct-oral Steel Code rnd others authorized an "estimating
bureau" in regulating lump-sum bidding. It was to.estimate the amount of
reinforcing materials, etc., required in a project, and combine it with
the bidder*s list of prices, ' Service bureaus for teclinical advise were
sometimes provided for^ as were credit bureaus, though later legal
opinion vie- >! them with suspicion. All these functions might have been
performed by the Code Authority, but a more disinterested agency was con-
sidered preferable. The establishment of such agencies was less super-
vised by ITHA than was the ap-oointment of Code Authorities rnd the adop-
tion of bud."-ets, •

(*) See proviovLS section for a discussion of the number of such agencies,

(**) No, 43, Ice, for exrjnple. Other Code Authorities did this without
a specific orovision in the code.

9743

-18-

.(e) Ar"bitration : ncl Coordinr.tln^^ Cominittees, . . . ■

Machinery to -.Treserve the internal riid external peace of an. industry
might also "be set up Ly Code Authorities. Aroitration committees were
often demanded "by codes, to settle all disputes "between fellow raenbers.
"Later" or "i2idustrial disputes" coiarnittees, to handle strikes, were
provided in 60 codes or 7fo of the total*' " Finally "coordinating commit-
tees" were authori-jed- in 320 codes. The majority of such committoes
were to coordinate trade practice rules with other industries in the same
market,. Others were to consider cooper.- tion with other industries on
matters of general -.lolicy.

. 6. IITVLSTIGA'TE AID ADJUST C0I.3^LAIiJTS. /,

(a) Collection of Evidence, '^ ■ ■•-.

Complaints of code violation were probably the most important
problems under any code. Code Authorities could take executive action
to discover complaints by sending out field rgents to inspect members'
factories and payrolls. The "ipwers of such agents ,were never clearly
defined, and were variously interpreted. (*) Complaints based on the
result of these investigations, ' or on spontaneous complaints by. individual
members were brought before the Code Authority or more of ten' before .5/
"complaints committee" specially designated to handle charges of '.co"de
violatiQn. ' Authority to handle either trade practice qr labpj coiiplaints
had to bespecif ically granted by rIRA to the Code Authority., ■ .

(b) Procedure at Hearings . ., ^ ,. ^_

Each complaints com^mittee was required to draw uo a plaJi of pro-
cedure and submit it to ITHA for approval. .Complaints were to ^ye made
in writing by any injured party. The respondent wa.s j(;iotif ied of the
charge and given a personal 'hearin,g.' The "name , of the complainant was.
withheld in labor , con jlaints. , After tiie hearing,' the complaints com-i
mittee made two decisions. First, it decided whether or not a viola,-
tion had occured. This involved a findijig of .fret as, to the respondent's
conduct and the price at which he sold the article or the wr..ges he paid
the employee. Often it included an .inter^jretation of 'law as to whether
or not such conduct constituted a violation. The respoi^de^t could

appeal this decision. ".„.

' ' j. ■

Second, the committee had the right to "adjust" or "dismiss"" the
comprint on the respondent's promise "to conply in the future, plus .
r(?stitution of back v;a.ges in a labor case. Similar decisions were made
by the IIRA Com-Qliance Offices.

Formal a"o :>eals could be taken from th'^ decision of 'a Complaints
Committee, or respondents could merel.y decline to adjust. In either,
case, the file v/as referred to ICIA. Aj .^eals fr.oin' local liidustry com-

(*) Their right to force rn ins ;)ectio:i of ne foers' record will be dis-
cussed below under S":)ccial Poers.
9743

-19-

mittees might hnve to "be submitted to "higher" Code Authorities, If
an interpretrtion of lav/ wns nccessrry, it '-rc.c, secured from the Deputy
Administrator in charge of the code. In any event, the co.se vd.s re-
ferred to an IIRA Compliance Council (at first in TJashington only, later
in any one of nine regions). The record vas revier/ed to ca,tch obvious
errors or lack of evidence, Further investi. :ations could "be requested
of the Federal Trade Commission, Opportrdiity for a, personal hearing
wo.s accorded to respondents, many of wnora accepted the opportunity to
adjust. If adjustment \7as declined, the Com."')liance Council would re-
move the violator's Elue Eagle and refer the case (through ITBA litigations
Divisions) to the Department of Justice or the Federal Trade Commission
for further legal action,-

6. COLLECT STATISTICS

Statistical reports were su'TOOsed to furnish information on produc-
tion and employment which would "be of value "both to an industry and to
the government. Such information was sorely needed. Often, reliable
inf orraatio".-! w.as lacking on such simple poiiits as the nvjnber of concerns
or the number of workers in a given industry. Census figures were of
little assistance because the census classifiCeations did not corresaond
to the boundaries of code industries. Unfortunately, this service
'seemed of less imnedio.te importpi^ce to Code Authority secretaries than
securing compliance and collecting assessments. It got under vray in
onlya few industries,

7. budget' SXPEiiSES. PLAi* AID COLLECT ASSSSSIEHTS.

The collection of assessments vras an important point which received
less attention than it deserved in the eexly period of the code marking.
The National Industrin.1 Recovery Act does not mention Riny assessments
on industry, and many ea.rly codes are equally silent, apparently on the
theory that such contributions -r/ould be made voluntarily. Later it be-
came evident that the expense of code administration would be consid-
erable, and that certain concerns would not make contributions unless
they were legally obliged to. Accordingly, a model orovision for majida-
tory a.ssessments was drawn up by iQA laAT^^'ers and incorporated, often
by amendment .in the majority cf codes. It pur sorted to make failure to
pay a,ssessments a violation of the code. The amount and basis of assess-
ments were to be -'i^roposed l:)-/ the' Code Authority, The combination of
these Dowers was so drastic that IJEA ass-'.imed close supervision over them,
Budgets had to be submitted by Code Authorities to NBA for review and
approval. Inevitably, this caused considerable dela..3'" a.t a critical per-
iod of Code Authority development. Similar precautions ha.d to be exer-
cised with respect to the -pressure iised to collect assessments. Care
was necessary in phra.sing ony demand for v^ayment, IIRA finally established
a special section to cooperate with Code Authorities in collecting
assessments.

9743

-20-

8. Ai/I3NDi/iEI'JTS, EXSiiPTIGNS, STAYS AITD INTERPH3TATI0N3.

(a) AnencLnents .

Arnen.dinents to codes, might "be proposed "by Code Aut?i-
orities acting for tlieir' industry. Codes differed as to the authority
granted to Code Authorities to speal=: for their, industries. The Y,1A
llodel Code (section 1660-1) provided that a Cod.e Authority might "recom-
ment to the Administrator any action or measures deemed advisable. . .
which shall oecome effective as a part hereof upon approval by the Ad-
ministrator after such notice and hearing as he may specify," One
hundred and seven (107) codes (l3.8^) contained this clause. Amend-
ments submitted by the Code Authorities could be approved by the Ad-
ministrator, after the usual NRA routine without a public hearing,
althougli opportunity to file objections v;as given to all industry
members. ChlyCTXi 'I'l^iJidred and fort/- two (143) codes (18, S'^) required
that the industry be consulted directly by means of a public hearing
before the amendment was approved. Still other rules on amendments,
many specifying that the Code Authority shall not bind the industry
to anything were contained in four hundred and three (403) codes (51^).
Tlie silence of the remaining 225 codes (16^) was interpreted to re-
quire a public hearing for all amendments. Administrative routine
for tlie approval of amendments was subject to prpctically the same
checks as the original approval of tie code. ITaturally, the opinions
of the Code Authority carried great weig.it in these negotiations
since they were based on long experience in the industry and expressed
the policies of an important group.

(b). Exe m'o tions . " ,

Exemptions fron code rules were granted by NHA.
If an individual employer could prove that a rule was inflicting un-
due hardsxiip upon .lim he could be exempted by N.'RA from the operation
of the rale. Since such issa.es involved policies, they were quite
properly referred, by the deputy to the five Advisory Boards and to
the Code Authority. As in the case of amendments, decisions v^ere
drawn up by the deputy for t.ie signature of the Division Adiviinistra-
tor and submitted to the Review, Division. If . the applicant wished
to appeal frpm this decision an indipendent "Industrial Appeals Board"
was set up to hear his appeal, ' ;

An exemption was rarely granted if the Code Auth-
ority advised against it. Delay was the element to be combated in
this procedure, since the final decision had to be made in V/asliington,
One promising solution for this problem was tried by the Cotton Garment
Code Authority. It established an Exemp|iions Committee, (called the
"industrial . committee" ) on which both labor and capital were repre-
sented. This committee w-^,? pledged to make whatever local iftvestiga-
tion was necessary and to send its reco.nmendations to Washington with-
in 24 hours after receiving the request,

Code provisions might also be "stayed" either in

9743

-21-

the Executive order w'iic.'\* approved each code or subsequently by the
Administrator. Stays were granted only for temporary relief, permanent
stays being considered tantarr.o'ont to amendment and contrary to policy.
They could be used, therefore, as exemptions were, to relieve any hard-
sliips which would have resulted from a strict application of a code
rule. In theory, a stay as the name implies was directed toward code
provisions, whereas exemptions applied only to individuals. Code
Authorities were never authorized to stay any code provisions.

(d) Interpretations .

Since this system of collecting opinions on policy
was so well establisiied, NRA applied it to the process ol "^ s suing in-
terpretations of codes. Requests for such interpretations came in
steadily from NRA State Directors' Offices from various industrial
adjustment r-.gencies and the Code Authorities. Each_ request was sub-
mitted to the Code Authority and to the five Advisory Boards. The
decision of the deputy and his division administrator could be rejected,
or a modification suggested by the Heview Division. Tliis procedure,
well adapted to securing views on policy from various sources, did not
always in-sure uniformity, speed, or finality for these judicial deci-
sions. Nevertheless, it gave the Code Authority quite as much influ-
ence as could be expected.

Occasionally a code contained an express provision
that the Code Authority could interpret (*) the code, subject to
disapproval by IIRA. Examples of such codes are t]ie Lumber, Steel and
Graphic Arts Codes. Such general powers were considered excessive and
were- not granted in codes approved later. Similar results, neverthe-
less, were produced 7/henever industrial com^nittees applied code rules
to particular situations. A respondent, for example, might claim
that a certain rule did not apply to his case. If a complaints com-
mittee refused to accept l.is defense, they were practically inter-
preting the code rales. If such an interpretation came to the notice
of NBA, by appeal or otherwise, it was duly reviewed. Few minutes of
complaint hearings, however, were sent to a^HA., so that if a respondent
acquiesced in the ruling of a complaints corrmittee, it usually remained
in force. As a result code authorities and their subordinate agencies
did interpret codes to a considerable e^ftent. Another year or two
would have allowed 1\;RA. to discover these rulings and correct them if
necessary. Final review by the Federal courts would have followed in
due time on disputed points.

B. SPECIAL POWERS AITD DUTIES .

1. POWER TO SELL LABELS

(a) Six Special Powers .

Special powers generally put teeth into Code provi-

(*) In such cases t]'.e Code Authority felt free to publish
their interpretations of doubtful passages.

9743

-22-

sions. Hot all Code Autliorities were permitted to exercise them. T-ieir
force was soraeti.aes diminished by NRA rulings. Prominent among tliem
were:

1. Power to sell laoels.

2. Higlit to inspect members' records.

3. Daty to select a confidential agent.

4. Assessment of costs of investigations and
complaint hearings.

5. Liquidated damages.

6. Duty to make special reports,
(b) Drastic ;3fiect of Labels .

T.iese powers were centers of controversy. Each one
was so effective that tiere was constant temptation to abuse it. The
sale of labels, for example, was first intended to raise money. It
was particularly common in the apoarel industries. In all, 43 codes
required the use of NRA. labels. To increase its effect, eight con-
sumer industries (including the detail Trade) agreed not to sell un-
labelled goo'ls if tlie code for that industry required, that they bear
labels. At first, Code Auth.^rities, were given full charge of maicing
and selling labels for their industries. It was found tliat firms
were thereby placed entirely at tlie mercy of their Code Autl.orities.
A refusal to sell labels could com;;3letely sliut off a member's sales.
He mig-t be ruined before he could get an" appeal to T/ashington. The
presence of union representatives on. the Code Authority migh-t prevent
such pressure on union shops, but not necessp.rily on non-union estab-
lishments. As a result of several investigations, and Y,3A "Label
Officer" was established in Ilew York and other apparel centers to
approve all requests for labels in consultation with the Code Authori-
ties, and to settle all appeals on that point,

2. IITSPECTION OP wiE:.iBE2S' KEOOIOS.

Inspecting members' records was bh important activity
of every Code Authority. Payrolls migLit need inspection to verify a
complaint of v;age- cut ting, or sales records to disprove a charge of
selling below cost. Information on similar subjects came to the Code
Authority in the form of statistical reports. These, if suspicious,
migiit need to be investigated for concealed violations. Again, as
in Graphic Arts Code, an investigation migiit be necessary to determine
whet'ier a member' s system of cost- accounting; was in accordance with
code requirements. If tne member complained against agreed to an in-
spection, no problem arose. If he raised objections, over 100 codes
and supplements or 15j of the whole largely chemical codes, gave the
Code Authority express power to force such an investigation. Admin-
istration lawyers, however, did not approve of the enforcement of such
rules except in accordance with a standard procedure. Tliey prepared

9743

-23-

the following model provision whic was inserted in 41 codes and
suppl ernen t s .

"Each member of the industry shall keep accurate and
complete records of its transactions in the industry
whenever such records may be required under any of the
provisions of this Code, and shall furnish accurate
reports based upon such records concerning any of such
activities when required by the Code Authority or Ad-
ministrator, If the Code Authority or the Administra-
tor shall determine thet substantial doubt exists as
to the accuracy of any such report, so much of the
pertinent books, records, and papers of such member
as m.ay be required for the verification of such re-
port may be examined by an impartial agency, agreed
upon between the Code Authority and such member; or,
in the absence of agreement, appointed by the Admin-
istrator. In no case shall the facts disclosed by such
examination be made available in identifiable form to
any competitor, wliether on the Code Authority or other-
wise, or be given any other publication, except such
as may be required for the proper administration or
enforcement of the provisions of this Code."(*)

In spite of these safeguards there was some doubt as to the
legality of forcing an inspection of members' records. This power was
so useful in settling complaints of violations that every effort was
made to retain it in one form or another.

(*) NRA (Office Manual, Section 1611 - 1).

9743

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'3.- DUTY TO SELECT A COI^IDEUTIAL AGEITT.

The information renuested from industry inembcrG in
statistical reports might include such intimate details as the mem-
ber's costs of production, lists of customers, and similar data.
This was particularly true in such industries as the detail Monument,
v/here the identity of a particular job could be detected from its
specifications. Concerns supplying such information were often an-
xious that it should not be divulged to their competitors*. Hence,
practically all codes provided that individual reports should be kept
confidential, and that the material contained in them should not be
published until it had been combined with other figures into general
industry statistics. But such provisions were not sufficient par-
ticularly in the small ones where the Code Authority members who re-
ceived such reports might be the very comiDetitors feared by the re-
porting concerns. Accordingly, 227 codes or ZQf-o of all codes and
supplements provided that reports should be received and collated by
some "confidential agent,"

Considerable latitude, in theory and practice, was
allowed Code Authorities in selecting these confidential agents.
Seventy-five codes and supplements (8,5> of all codes and 15, 5'^^ of
large codes) expressly permitted the Association or one of its of-
ficers to act as the confidential agent. In contrast, about 100 codes
specified that the confidential agent should be "neutral," "impartial"
or "outside the industry." In practice, many Crde Authorities appointed
the secretaries employed by local agencies to be confidential agents.
Such appointments elicited some complaints, since they designated an
agent who v/as in close relationship v;ith the immediate competitors of
reporting members, iJRA stood ready to hear complaints that improper
persons hs.d been appointed a.s confidential agents, (especially v/here
the code reouired that they be "impartial", etc.), but did not require
the appointments to be submitted to it for prior approval. Undoubtedly
less criticism occured where some public or educational research agency
was appointed as a confidential agent.

4, ASSESSMENT OF COSTS OF INVESTIGATIONS AND HEARINGS

The costs of complaint hearings and investigations are
rarely mentioned in codes. In the absence of any express reference,
such costs were paid out of the general funds for administering the
codes, A fev; codes, mostly supplements to the Fabricated Metals, Codes
so stated. About 30 codes provide that the cost of an investigation
should be borne by the mem.ber investigated, provided that the investi-
gation showed that he either violj.ted the code or furnished false in-
formation. Most of these cod.es did not distinguish between investiga-
tion as part of the hearing on a complaint, and investigation of books
merely to verify suspicious statistics. Often, of course, the furnish-
ing* of false information constituted a violation, A few others includ-
ing the Graphic Arts Code, provide that costs of a complaint hearing,
aside from any investigation, should be a.ssessed against a respondent
found guilty. Occasionally, the complainant was required to pay costs

9743

if the complaint was ■'broUi;^t "irivoloiisly" or if the respondont was
acGuitted. (*) At least two industries, Industrial Safety Equipment
Manufacturin;'^: and the Gas Appliance Industries required a- complainant'
to deposit money when ma'^.^iin^?; a complaint, to Ido applied a.gainst costs
if the respojident was acquitted. The amount of costs to he paid v/as
nowhere stated, sn presumably it was determined '^oy the Code Authority,
In only one code (Copper) was the duty to -oay costs limited to those
concerns v/hich ha,d expressly assented to the code, and hence to this
rule.

Such rules follow the precedents set "by courts for impos-
ing costs on the party who loses the suit or is convicted of crime.
It seemed reasonable when codes were first drafted -that a violator
should compensate the Code Authority for the expense which he caused.
Upon more mature consiaeration, however, lEiA lavr/ers decided that Code
Authorities did not have the ri^;ht to assess costs against merahers, and
therefore, were not included in later codes.

5. RIGHT TO COLLECT LI '.^UIDJ.TSD D.'J.iAGES

Licuidated 6:amage provisions permitted industry merahers
to agree wdth one another that if they violated the code they would pay
a fixed sum to some common fund for each offense. Several industries
wanted the power to 'impose penalties for violations as part of the "ad-
justment" of a comrjlaint, 'They pointed out that it v;ould pay a concern
to violate its code "('by cutting wages or prices) so long as it had a
chance to escape detection, and suffered no penalty if caught, Eine
and imprisonment by the Eederal courts might require months to apply,
and often seemed too severe for the repentant violator. To take care
of this problem the Investment Saiikers' Code allov/ed the Code Committee
to impose "penalties" a.nd a- "fine," Similarly the Reinforcing Materi-
als Code authorizes "_liq_ui_d ated dan;a:'';es or ot her pe nalty," Even with-
out such authorization, the Motor Vehicle Retailing Code imposed a
few fines until stopped by MRA,\ The Courts have ruled that fines are
illegal and they cannot be collected in the guise of licuidated damages,
A model provision for licuidated damages v/as, therefore, prepared by
NRA., It provided for an agreement separate from the code, v;hich bound
only the members Yiho signed it.(**) The amount of dfjuages was described
as closely as possible. Thus, for a v/age or hour violation, the re-
spondent v/ould pay to the Code Authority a sum e~ual to back v/age s due
under the code. For other labor violations, such as employing child
labor, and for trade' practice violations, a fixed sum differing in
various codes v/as set as the amount of damage to be paid. Collection

(*) Asphalt and :.''astic Tile, Rock a.nd Slag Wool Manufacturing,
Preformed Plastic Products, all small codes,

(**) KRA Office Manual, l^So.l

9743

-p^-

Y/as by civil suit. Pa,yments for labor violationG were to be dis-
tributed among employes affected. Payments for trade practice viola-
tions were to be applied to the expenses of administration, and the
balance distributed B.:nong parties to the af^reement v/ho were complying
v;ith the code. In thin form, thougli constantly under suspicion, pro-
visions for liouidated damages yibtc increasing in number, largely ''oy
amendment of established, codes'. Thirty-one codes and supplements
(.3.5'j) carried this provision in May 1935; seventeen by amendment.

^, Duty to make s-oecial reports:

' ^- 2Z J-^^J'istj./. ilSIS^srj^ _t ^tjp.e ^Co^de___4u-yio r i_t^

Three kinds of special studies or reports were men-
tioned in 'S'PA codes:

(a) Purely optional — from the Codte Authority

to mA,

(b) ComT)ulsory — from industry members to the

Code Authority.

T^rpe (a) reports dealt with standard sub.-jects, such as
the desirability of some price or production control for the industry
in question. Others held "nromise of more statesmanlike action in sta-
bilizing employment or coordinating relating codes. The importance of
such studies is diminished by the fact that they could have been made
or omitted regardless of the provision in the code.

Type (b) reports v/ere reouired of industry members by
the God.e Authority. They showed the prevalance of some practice v;here
fairness was in dioubt. Details of "eoui table adjustment" (of v/ages
above the minimum), employ.ient of learners, homework, overtime, sales
on consignment, distress sales, or- refund.s for goods returned, v/ere
thus reported. Presumably the Codte Authority would use this informa-
tion to decide whether more or better rules were needed on these sub-
jects, but it was under no obligation, to report or recommend anything
to jSELlx. The information thus collected will be a valuable basis for
future regulation of industry, if it can be secured and published,

b. Reiiorts jDxJ^.ode_Authqr_it:/^^

Codes also imposed on Code Authorities the d.Mty
of making certain reports to be used for N?ji purposes. Twenty-three
out of 43 large codes rcc^uircd such reports. Some v/erc reouired for
use in applying rules already approved. The most coiiimon of these were
lists of hazardous occupations (from v/hich minors v/ere excluded) and
standards for safety and health. Reports and recommendations v/ere also
required of Code "Authorities on subjects v/hich needed regulation but on
v/hich no agreement had been reached when the code v/as aDproved, As a
rule, a tim.e limit v/as set v/ithin which these reports v/ere to be rend-
ered.

9743

-37-
c. . Snob jects . ■

. The subjects -'of the reports varied from code to code
and dealt v/ith highly controversial matter. Thus, a covmnittee of the
Trucking Industry vAas to. report and make recomincnd?.tions on t?ie payment
of wages for "v/aiting time, off duty, and dead-heading." A Cotton Tex-
tile Committee v/as to study "v;ork assignment" (the stretch-out system).
The Graphic Arts Industry was to' study prevailing wages, the' proper com-
plement of men rcouired for relief printing mechanical equipment,' the
apprenticeship situation in Lithographic Printing, and job classifica-
tions in Trade Mounting and -^'inishing. In the Soot and Shoe Code the
Planning and ?air Practice Committee, was to undertake an investigation
of the minimum wage scale and report on it not later than March 1934,
The Fishery'- Code -jSithority v/as to meet with Government Conservation
agencies to formulate a plan to conserve fish and tc inalce recommendations.
The Furniture. Manufacturing Industry' v/as to investigate homework' and
report within ^0 days. Tne 5 Code Authorities of the 5 industries under
the Scrap Iron Code were to study a,djustments of minimum v/ages and maxi-
mium hours for fi months after code approval and submit recommendations.
The Cotton Garment Industry was to repc^rt on wa^ e differentials between
North and South, and on urhan and rural minimum. Retail Rubber Tire
Industry was to study the problem of "consecutive employment, and report
v/ithin 90 days. The Canning Code Authority was to list perishable, sea-
sonal, and non-seasonal products. Dress Manufacturing Industry v/as to
report on style piracy v/ithin ^0 days, -and on a provision for introduc-
ing apprenticeship systems by January 1, 1934,

^» Delay J^n ReToortjji^.

The list of subjects for reports "and recommendations
comprises some of the mcst difficult subjects. The reports v/ere ex-
pected to provide solutions for proolems on v/hich industry representa-
tives coul-d not agree, even v/hile v/orking close to ilRA^ Naturally, an
agreement was no easier to reach after the pressure v/as removed. As a
result, these reports were rendered late or not at all, in the case of
the Trucking Industry, months passed before agreement could-" be reached
on the composition af the cominittee. Should a similar situation arise
in the future, government representatives should have the right to in-
itiate such studies and act upon their ov/n judgment in case the Code
Authority failed to report on the date set,

„ C. DISCRETI ON ._ALLOVffiJ}. _CODE _AUTHO?J TIES .

1. EXTREMES OF DISCRETION.

(a) Subject t o IJRA DisaDuro val , . - -•

The majority of pcv/ers described in the pre-
ceding section were to be approved in adv,.nco by NRA, or were sc
clearly described in the code tnat only one ridnisterial details v/ere
left to the Code Authority, -hat was is.a r.?Ti.i- 1 method of Code Admin-
istration, Exceptions to r.hr. t normal me:ho'' occurred when a code al-
lov/ed the Code ;f^uthority to act' on som^e sucjo^t r/ithout first securing

9743 • •

-.'JO-

NRA. approval. Such acts were always subject to review and disap-
proval by KRA, but reviev/ was slow in some instances. If a Code
Authority had the right to act without NRA, whether or not it had to
report its action, it v/as exercising real discretion,

( "b ) More Su Deryis ion J.n JLat^e_r _Co,(ig-g.«

In describing the discretion allov/ed Code Au-
thorities, certain provisions should not "be considered representa-
tive. MA policy on the discretion allowable to Code Autherities
developed in the direction of greater supervision "by the Adminis-
trator, The later codes showed the effects of this development,
since they permitted only a moderate amount of discretion to the
Code Authority. Early code provisions v/ere not thus limited and are
not therefore,' true statements of code authority powers. To cuote
a National Industrial Hecovery 3oard statement of policy dated
May 2, 1933 (*), "they merely revealed ori,';;inal intentions, not what

actually happened A good many of the features contrary to policy

were prevented from over going into ef feet. ... Special powers hestowed
by codes on Code Authorities were withdrawn whenever justification
through misuse gave opportunity."

The development from less to more NHA supervi-
sion was not regular cr orderly. iThe process ef. code making in-
volved plans by industry, censored by NRA. Hence a strong trade as-
sociation dealing with one deputy might get more concessions on a
given date than another industry confronted by a 'different deputy,
A series of codes for steel-'product industries will Illustrate both
the uneveness of the application cf IIHA policies and the transition
from extreme to moderate Code Authority powers. The codes listed be-
low all represent the extreme «f discreti'^n granted to Code Authori-
ties on <tr about the dates on which they were approved. Other codes
approved near those dates carry less drastic powers. Even in these
extreme codes, however, the amount of discretion granted diminishes
steadily frem August 1933 to August 1934.

TABLE 10

SAMPLES OF EXTREME CODE AUTHORITY DISCRETION IN FOUH STEEL CODES

Date No. Name of Code Fix Inter- Assess Liaui- Decide

Approved of Fair pret 'Costs dated Whether

• Code Price Code of Damages Agent

Audit

■Aug/l/33 • 11 Iron and Steel X X X X X

Nov/ll/33 127 Reinforcing .

'• ■ ■- Materials .X XXX

May/30/34 11 Iron and Steel

■ Amendment " X X . X X

July/ll/34 480 Structural Steel, etc. X • X X

Aug/l/34 495 Steel Joist X X

(*) Code Revision^M emorandumlo . 1, Evolution^of Trade Pract ice Poll c fe s ,
9743

-29-

Thc letter X si(r;nifies that tho pov/er dopcri'bed in the heading was
granted to the industry by its code. In all these codes the Code Au-
thority or a majority thereof v;as formed from the Association. Iron
and Steel was much the largest, with oOO concerns and 430,000 v/orkers.
The amendment of the Iron and Steel Code in May, 1934 shows the ten-
dency to reduce Code Authority pov/ers. Reinforcing Matei'ials was so
closely allied to Iron and Steel that its code proposed to refer cases
of violations to the Am.erican Iron and Steel Institute for action, as
v/ell as to its own Code Authority, Its "basing points, v/age districts,
and hourly rates were the s(?jiie as in Iron and Steel. The Structural
Steel Code never went into effect. Some nf its powers were cut dov/n
"by the order aiDproving it, and the v/hole code was eventually stayed.
The Steel Joist Code had 900 workers in 1929 and only 95 in 1933. Its
code frankly imitated the Reinforcing Materials Code, hut the reduction
in powers indicates the chan^,e in NRA policies.*

( d ) Nature of Fo;7_ers.

The Code Authority powers listed in this table
were all unusual. Fixing prices v/as concealed in each case under a
rule that the Code Authority might reject a filed price which it con-
sidered unfair.

The right to interpret the code was expressed so
, "broadly in both codes that it chvicusly would not he enforced hy KRA.
Thus the Ir.-^n and Steel Code stated that the interpretations of its
Code Authority should he "final and conclusive". The Structural Steel
Code contained an unusual rule to the effect that the Code Authority
had the right to construe the code but that a meeting of all industry
members might substitute a new ruling.

Assessing the cost of an audit or investigation
against the concern investigated, included the right to force an in-
spection cf books.

LiQuida.ted damages could be collected from all Code
members, and the amount could be fixed by the Code Authority,

Deciding whether a customer was an agent or not was
important because sn agent was entitled to a substantial discount from
the price charged to a regalar customer. In such cases the application
of the rule is ouitc as important as the rule itself.

( e ) Po_v7e_r G. Jfe 1 _Fi il_lx _Ex e_rci s ed . .

Apparently these pov/ers were exercised so moderately
that little resistance v/as aroused in the industr"/. The Iron and Steel
Industry had 15 valid trade practice complaints_f iled during its whole
history, v/rthL>at one on hand in May 1935, The -Reinforcing Materials
Industry had two and the Steel Joist Industry none. A Code for Struc-
tural Steel Industry was not in force in May, 1935. These may be com-
pared with 233 complaints on hand in May, 1935 under Electrical Manu-
facturing Code and industry roughly comp-.rable to that of the Iron and

(*) .See the introduction.
S743

-30-

Steel. Ividently, the phrr,cing of these extreme powers is not a fair
indication of the extent to v/hich iclA. permitted them to "be exercised.

2. NCPJ.iAL LISCHBITIOIT

( a) Code Authority i]xcVptlons_.on .Mi.no_r Points,.

More normal tyocs of v.i jcretion allov/ed Code Au-
thorities to modify the ri/-<or of code" rules in special cases. Thus,
in the rare plans for dividinse, existing "business "by limiting;- produc-
tive ca-oacity, the Code Authority could normally grant permission to
build nev! -olants v/ithout W?A approval. If permission was denied, an
appeal cculd "bo talcen to 1^!?A.. Cn minor activities, such as sales of
seconds or discontinued lines, and sales on consic^^inient. Cede Authori-
ties could sometimes f-rant exceptions or prescribe re^rulations without
]^RA ar)proval. Occasionally, specific rules (usually providing for
price-filing) could he -out into force or discontinued at will by a Code
Authority. The exercise of such powers needed v/atchin^;;, because it
might arouse chprges of favoritism, but as compared vnfh the total
amount of Code Authority activity the discretion involved in these
rules T/as of little conseouence.

( b ) Sijnilar ^Pr o vis ions _i .n -Q.QJ"-y^A^- „o^ Relatejil .Codes.

Li'cc other fashions in administrative rules, cer-
tain provisions were common in groups of codes dravm up by the same
lawyers, Thus, both tlie lar^^e Paper and Pulp Federation (2- sub-
codes) and 22 industrial paper codes allowed the Code Authority to
establish and discontinue an open-price system at will^ This was done
by tv/o types of provisions; one, used in the Paper and Pulp Code, es-
tablished an open-price filing system but allov/ed the divisional Code
Authority ti suspend it; the other t:;rpe of provision stated that the
Code Authority could "from time to time determine that an open-price
plan of selling shall be put into effect." Similarly, 12 supplementary
Machinery and Allied Products Codes contained an identical clause on
filing price lists. Ih.e Paper Distributing Codo stated clearly that
the Code Authority could choose v/hat Drices should be reported. The
Wholesaling Code also contributed freely to the list of exceptions by
allowing its 23 Divisional Code Authorities to put in an open-price
system, and to reduce the basic v;crk week to less than fi days. The
chart below will show that the Paper and Wholesale Codes account, be-
tv/een them, for an undue proportion of exceptions.

9743

TalDle 11

^TU1.tb::1R of codes P^',Ri.iITTIRG CODE AUTHORITY, WITHOUT
NIRA APP-ROVAL, TO ;JjL0W EXEMPTIONS FROM OR MAI^ RULES
REGARLIIJG:

Subject N-umber of Per Cent of

Regula ted Codes _A1^1 ,Cj3 de s ,.

Distress Merchandise 78 a/ 10'^^

Sales on Consij^nment 91 ^Z ■ 11.9^

Hours Provisions 44 _c/ 5,Sfo

Wage Provisions 8 d/ 1,%

Miscellaneous P>Z ef O.S'Jj

a/ Fine (9) of these v/ere codes for industries manufacturing some
paper specialty and 22 were supplements to Code ITo. 201, Whole-
saling.

b^/ Nineteen (19) of these codes were for industries manufacturing
some paper specialty and 11 were supplements to Code No. 201,
Wliolesaling,

£/ Twenty-four (24) of these codes were supplementary to Code

No. 201, V'nolesaling. They permitted the Divisional Code Au-
thorities to reduce the number of days of y/ork per v/eek.

d/ These were all exceptions from certain classifications of workers,

e^l Tv/elve (12) of' these v/ere supplements to Code No. 347, Machinery
and Allied Products Industry, on price lists.-

When one Code Authority could make rules or grant
exemptions on several of these subjects, it could exercise a, consider-
able amount of discretion. Thus, the Insecticide and Disinfectant
Manufacturing Industry Code provided in Article VI: -

"(c) No quantity discount shall be allowed on
any order for insecticides amountin{i; to
less than 545,00 except under conditions
prescribed or approved by. the Code Author-
ity.

"(e) Nothing in Sections 1 and 2 of this Article .
shall be interpreted to prevent any sale in
good faith of any products that any member
of the industry may be discontinuing in his
line, or damaged goods rr inventories which
must be converted into cash to meet emergency
needs, upon such terms and conditions and in

9743

increasinj;^ or decreasing II'PA supervision accordin/^ly,

( d) Al 1^ P o \7 e r G L irn i t e d J3y _FRA I nt e r pr_e_ t a t i o n s .

Code rules, therefore, should be read in the
light of i*SA policies and practices ra,txier than taken literally from
the codes. Until the Federal courts had spoken, ISA had a duty to keep
these hastily drafted provisions within the limits of the National In-
dustrial Pxcovery Act. Waen this effort was successful, code problems
were minimized. Most difficulties in administration occurred when code
rules \7ere ignored, nr in conflict v/ith other codes, or used by one
faction to harass another, Wlicn an industry was divided against itself,
no document could secure cooperation.

9743

-3^1-

III. IvSTKODS or SSLSCTICn OF CODZ AUTHORITIES.

A. 'TPJJDE ASSOGIATiOlI COUTHCL.

1. COITTP.OL

T)---

CUE TRADE ASS3CIATI0I!,

(a) A'T^rov-l Required "by licLl.

Every code provided the method "by vniich its Code
Authority should be selected. If no a^reen'-nt could he -reached at the
moiaent , the usual rule -..'as th.it the selection should oe "hy a fair
method of election to he ap-iroved "by f.ie A^biinistrator. " Out of 886
codes r-.'id sui ^leaents 190 ■•)ost;-)Onod the method of election of their
Code Authority ...emhers. 3y iiay 1C35 only 14 such methods had not yet
"been fixed. In every case the na..es of the Code Authority members had
to be reported to IIRA v.'ith -yroof th" t they v.'ere selected according to
code ;)rovisions.

(b) Bal-aice T^etveen Efficiency and Democracy.

IIRA pstabliohed :io one method of selecting Code Auth-
orities. The de-outies sou^-;ht to strike a balaxice in each case between
efficiency r.p re'rresented by Trade Association Control and true re'or-^seni-
tation of all interests involved. The most im;oortpnt devices employed
to secure true re"oresentation v.-ere general industry elections and the
guarojiteein^^ of seats to definite minorities. Both these last methods
were i.iore ci^mbersome and e"~oensive for le.rge industries thpji for small,
so \?ere less often employed in the largest codes. Only five general
elections were held in the 35 largest industries v/nich covered half the
total of employees. In all codes and supplements, 301 general industry
elections "-ere held (35^o of the total).

Table 12: ijuinoer of Elections -raid Guaranteed iiinorities.

Size-Groups

ilo. of

General

Elections

>ercent

Guaranteed

Industry

r.inorities

srcent

35 over 130,000

35 50-130,000

—

70 largest

All 8G6

301

351

:) Efiicien

•C7

in Trade

Association Go

Practically ever;;,^ code was sponsored by at least one
trade association. Its members had acouired confidence in one another
through years of collaboration, and had established a com :ion fund and an
e:oerienced staff v.hich could turn at once to the ^-ork of code adminis-
tration. Hence, whenever the trr-.de association included all the members
of an industry, it seemed both fair and vise to permit the trade associa-
tion to aiainister the code subject, of course, to IIRA supervision.

(d) Details of Choice by T-p'^'de Association.

To im-olement this control, I^TIA first reviewed the

9743

-35-

"by-lav.'s of the association to see that they contained no inequitable re-
strictions on ineml-jershi-D or voting. The code night then -orovide that the
Code Authority should "be either;

1. Tiie Association itself (*)

2. Its 3oard__of pi_rectors

3. Its Code CoiiiiTiittee

4. Appointed "by its Board of Directors

5. Appointed "by its President

6. Sleeted "by its members

All these methods achieved so nearly the sv-me result
that they may "be lumped under the heading, "All Code Authority Members
Selected by or From one Trade Association." Under this heading would
fall :

l^umbered Codes: 116 out of 577 or 19^
Supplements and

Divisions: 53 out of 239 or 22.^
Large Codes: 17 out of 70 or 24.3^

(e) Tem'Dorary Association Code Authorities.

This method avoided so much delay in launching
code administration that tera"oorary Code Authorities v'ere often appointed
from the dominant trade association, v/ith instructions to arrange an
election for a ■^oerraanent Code Authority v'ithin a fiz'ied period, usually
from one to four months. Such Associr. tion Code Authorities are not
counted in the tables of pen'aanent Code Authorities v/hich accompany this
report. In m<any cases, hov/ever, since the life of many codes was short,
a temporary Code Authority was in control during all, or -practically
all, the period of code administration.

(f ) Federated Tr-:-de Associations.

It should be noted that all trade associations
were not equally compact, so that their efficiency might vary accord-
ingly. Fabricated lietals Federation, for e-;a::iple, which ap-oointed the
Code Authority for Code llo. 34, ras solit into 113 or more divisions each
of which was so independent that it had, or planned to have, a supple-
mentary code. Similarly, the International Association of Garment Manu-
facturers selected the Code Authority of Cotton Garment Code No. 118
from its 16 subdivisionai grou'os. The Motor Bus Association not only
allowed weighted voting, but was a federation of 11 districts, each of
which sent one re-oresentative to the committee which selected the in-
dustry members for the Code Authority of the Code. Within such feder-
ated trade associations arise all the problems of divisional represent-
ation v/hich are discussed in Section III, D, below.

(*) In rare cases. Since the Association had to act through its elect-
ed officers this made difficulties only when a list of Code Author-
ity i.iembers vas re-uired. Strictly -siecCzing, the several thousand
members of an association would have to be listed in such"cases.

9743

2. T^O OR ::SyB2 ASSCOIATICIIS COITTHOL.

(a) SxaiToles.

Unfortunately, the raajorlty of indus':rien vere orr^an-
ized under several trade ascoci- tionc, or contr.ined a sutstrntial nun-
lier of concerns viiich ^?'ere not .ae-foers of any trode association. Where
several trnde anrocirtions clainied to s :-'ea/: for an industry, IIRA selr.ct-
ed those which -ere mor.t truly represent tive and' accorded each one its
share of representation on the Code Authority. Tliis mi£;ht result in a
long list of ine-nhers. Tlie National Retail Code Authority, for example,
contained representatives from nine associations, as follov/s:

National Retail Dry floods Association

National Shoe R^ta^il'^rs Association

National Retail Hard-'are Ac^sociation

liail Order Association jf America,

Nati~jnal Association of P.ctail Clothiers d Furnishers

Na.tiona.l R(itc:il FiJ.rnit.ure Association •

Limited Price Variety Sfores

National Association of La sic L'ercliants

National Council of Slioe Retailers
Similarly, the Cotton Tpxtile Code v-as originally administered by a.
'^Cotton Textile Industry Coranittee, the a-yolicant herein, or by such
successor com,aittee or com.lttees as may hereafter he constituted "by the
joint action of the Cotton Textile Institute, the iimericrm Cotton Manu-
facturers As-soci-tion .--.nd the Na.tional Association of Cotton Manufactu.rv
ers. " Sy suhseouent a.ieniments the follov/ing associations v/ere admitted
to the circle of electors:

National Rayon 'Joavers Association

National A,isocirtion of Fijiishers of Te:"^tile Fabrics

Til r e ad I n s t i tut e

kercerizers As-ocia-tion of America
Allowaiices had to be ;r:a.de fo.- differences in size in these various g
groups. Size v;as U'jually comouted on the basis of volu_me of -production.
Many concerns, moreover, were members of more than one association, ei-
ther because they carried on va,rious processes or because they vrisiied to
belong to a. central organization like the Cotton Textile Institute as i
well as to a, southern group like the Americaai Cotton Manufacturers Asso^'.
elation, or a northern group such as the National Association of Cotton
Manufacturers. As a result of these complications it is im"30ssiblc to
trace the fairness of representation in such systems.

(b) Effect on Ll^nority Rpijresentation.

Minorities of non-as30cia.tion me/;ibers, labor unions,
and such organi'::ations , were less often represnnted on raulti-association
Code Authorities, "Da.rtly because so many ■:)oints of viev; were already
represented ssiC. -oa.rtly because of the difficulty of detennining the
oroper ai.iount of such representation. Shou.ld a. separate candidate be
elected by all who were not members of the dominant association, or one
from concerns in each process, such a.^mercerizing, •••ho were not members
of the iviercerizers A-oociation, but might be of other pa.rtici"oating
associa^tions? Or should separatte Code Authority members be elected by
the few concerns who were not members of any association? Similarly,

9743

-37-

if unions -were to "be re"^resented, hov; ■ lany and ^-'liich ones? It was the
lar^e code indr^stries, as a rule, v/hicli needed :;Tulti- association Code
Authorities so the lar^^-e codes contained fewer -provisions for self-elec-
ted minority re^resent-^t ion tJicn did the snaller ones.

Table 12: ?ro->ortion of Self-Elpcted ITon- Association He-iresentat ion.

Size-G-rou-Ts ITo. of Codes vdth Percent

Self-Elected I.iinorities of Total

35 over 130,000 3

35 50 - 130,000 7

70 lar-^est 10 14.

All 586 269 30.

B. GENERAL liJDUSTHY BLECTIOMS.

1. DEMOCRACY HEEDED.

(a) IJot Ensured "by Trrde Association.

Trade-association control wa-^ the aost ;oroiT!ising
method for ensuring speed in the establishment of a Code Authority and
efficiency in its administration. Such control, however, was always
open to the charge of oeing undejiocratic. Trade associations usually
included the large firr.is which "produced the greater 'oart of the volume
of their industry, hut did not necessarily include a majority "by number
of all concerns in the industry. Moreover, even if a trade association
included 51^ of nn industry its own policy was iDresui-.iably decided by a
majority of its own members. Hence 26^5 of the industry could theoret-
ically control the whole. Tra.de-association control, therefore, became
identified in the "^o"oular conce-'ition --'ith the domination of large firms
over the "Little f ellovf. " iJPA. ^"as coriiTiitted to the ;:irinci'ole of true
representation for ctll elements of the industry, so it often insisted
that certain democr£.tic devices be e.i cloyed in Code Authority selection.

(b ) Pr 0^10 ted by Elections.

Prominent among the devices were general industry
elections. Ho seats were guaranteed to eji:^ association or non-associa-
tion members. Sl;ites ••ere nominated by comimittees, from the floor, or
by mail, and ballots cast by individual members of the industry. Such
elections resembled the ;5olitical elections in the average American
State. Such Stc-tes are termed democracies, so such industry elections
appear at first glcince to be dem.ocratic. This democracy, however, is
hampered by certain conditions ^--hich do not obtain in -political elect-
ions.

2. THADE ASSOCIATIOn IHITLUEIICE.

(a) As a Political Party.

L'^-ast obvious but most cor.imon of these conditions
was the "oarticipa.tion of one or more SDonsoiing trade associations as a
kind of political party. As such it exerted at least the usual influence

9743

-38-

of an orgcnized niinority. Its organization was usually established over
a vide, -irea, 'ind ireauently circulTited its viev/s by means of some trade
oublica-tion. Its leaders were accustomed to conferring on policies
which tneir fjllowers would support. By c.ntrast the non-association
mer.^bers vere often small firms in distant ports of the country, with few
means of cor.i:iuiiic:-tion. Even v.dthout specific a.uvantages granted by the
code, trade association me^-ibers had a better chance to swing an election
than did the unorganized members. V/lien a trade association did win a
general election, its whole slate was elected, so tha.t minority -parties
got iio representation at all.

(b ) I<y Su-?ervising lilections.

Definite advant^-^ges in elections, moreover, were
often granted by codes to trade a-sociations. A*^oroximat°ly 200 codes
and supplements err^ressly "provided thr^t the association should "super-
vise" elections. Even where the code, did not reouire such su'oervision,
N?uA naturally turned to the s')onsors of the code for assistance in dra^"-
ing U'j a list of concerns qualified to vote, irooosing a slate of can-
didates, and coimting the ballots. 1!he plrxce and date of meetings or
of receiving mail o pilots was also normaJly referred to trade assoc-
iation officials. IIa>.turally they would maize sure tha.t the method
ado'oted 'id not o>erate to their disadvajitage.

Besides granting the ;50wer to steer elections, 157
codes (l7.7^i) re'r'uired trade association officials to direct their a.d-
ministration. This was arranged for by m.aking certain trade associa-
tion officials ex-officio ..lembers of the Code Authority. Besides the
votes thus ''granted, the presence of these veterans in industrial organ-
ization must have had a decided Influence on their less experienced
colleagues. This influence "ould normally be exercised to secure
efficient .management, but it might also facilitate an attack on non-
association interests.

3. VOTING C0i:DITI01IS.

( a ) S'.iffrage Limited to Assenting llembers.

Besides offering special advantages to trade associa-
tions, code el-'ctions freouently i..voosed certain conditions and nualif-
ications v.-iich affected all voters in elections. Thus, 137 codes
stated e": ressly that no conce--n could "participate" in code governDlpnt
unless it had assented, in vrriting to the code. The i.^odel Assessment
Provision si.iilarly limited the "benefits of the code" to those who
had paid their contributions. These two orovisions might exclude from
voting a considerable number of concerns. The Retail Solid !Puel bud-
get, f r exai'.Tole, out of an annual total of 146 millions of retail ton-
nage, listed only 110 million tons on v.-hich assessments had been or
v/ere ex-^ected to be collected. Tliis would mean thtit nearly one-ouarter
of the industry, counting by volu.ie, v.'as disfranchised. If this ton-
nage w:~is --^ut out hy the smaller firms - as it "orobably was - the pro-
■■)ortion vrould be even great-r. Such a system was consistent with

-?9-

abstract justice, but it tended to widen the ga,_3 between dissenting
groiiTDs. Sroerience showed that in sev-^ral industries, including Retail
Solid i\iel , a. few rebellious xirr.-js believed that "paying assessments
was like sending amr.Tonition to the enemy." De"oriving them of votes
v;ould confirm this attitude.

(b) Weighted Voting.

Another complication in Code Authority elections was
caused '^y the fact that the concerns varied greatly in size. Large com-
TDanies regularly paid assessments based on volume of production. It
was not considered fair to give a one-man concern as much power as a
large corporation. Several codes, therefore, provided tha.t some or all
Code Authority members should be elected by votes weighted according to
volume of production. " •

Tab 1 e 13: Cod es T)roviding for Weigh ted V oting at Elections.

Size-Grou-Qs Total Elections Total Weighted Percent
35 over 150,000 ' S '3 37

35 50 " 130,000 27 ' • 4 'i.4

886 total codes and

divisions 570 131 . 23

The totals of elections include both elections for the
whole Code Authority ojid elect ions for a minority elected by and from
non-associa.tion members. The totals of v/ei,.:hted voting inclu.dG cases
where half the Code Authority is elected by votes weighted according to
volume and hp.lf by a numerical majority. These figures do not include
provisions for weighted voting which may be foimd in trade association
by-laws. They do include cases in which individual votes are not weigh-
ted, but a similar result is rerched by reserving certain seats on the
^ode Authority for the representatives of larger firms; as where all
members vcte^tog ether, but half the seats are to be filled by members of
the 10 largest com;-»anies, and -half by representatives of 90 smaller corr-»
cerns.

In the 35 lar^e'-t (iodes all '^lections v,dth weighted
votes were general elections. In one of these elections votes for all code
Authority members Y/ere weighted; in the other two votes for half the mem-
bers only ^ere weighted. In the total of 886 codes and su;o-?leraents 64
instances^ of weighted voting w'ere sup-7lied by tv;oindustry divisions.
Equipment and that is in the industry in tlie Wnolesaling trade. The
sup-ilements to two federated coc-es in those divisions. Machinery and
Allied Products, and the Wliolesaling Trade, accounted for most of this
weighting. No one -orinci-olo caJi be discerned which will explain the
amount of weight assigned to vol-u-ne in the various codes. In every
case each firm was allowed at least one vote. Usually no one concern
was permitted to cast the iii.ajority of a.11 votes in the industry. Fre-
quently, the weight allov/ed to volume decreased as the volnjne increased,
as when a concern got three additional votes for its first million of
sales but only two additional votes for the second million, and one
additional vote for its third. Weighted voting was deliberately ad-
opted as a principle by IIHA and derives some im-oortance from that fact
alone. Its actual effect upon democracy in code administration supple-

9743

-40-

nents the efiect of al'^.o'.ring trac.e associations to se?_ect Code Authorities,
"but is lesr iniDOrtant "because ferer elections nere held in the largest
code

7"'^esides these najor conplicati'^r-s in voting there are e
feu general rales nhich affect the result to a. lesser degree. Thus,
many codes expressl.y provide that "ballots nay "be cast hy nail. This is
an assistance to the snail er concerns nhich cannot afford to send, re-
presentatives to 8 distant meeting. Verj'' rarel;,'- an attenpt rras made to
secure ninority representation oy alloring concerns c"inulative voting,
that is to C'jjiulate (either vote once for all positions or to pile up rll
votes for one candidate), Tv^enty-f ive (*) codes or supplenents contain
provisions for cumulative voting. It is nost corrnon in sr.all codes in the
Food Division and in the Cheynicals Division. In only one election ras the
classic Eare Sj'S.tem of Proportional Representation enplo3''ed. Ainong these
:ninor situations is that in v;hich an incustry is so snail that each nern"ber
can aropoint a representative to the Code Authority. This is perh^aps the
most der:ocr8.tic method of government "but is ohviously impractical for anj'-
but the smaller industries. Only 24 codes emploj-ed it, — 2,7fo of the
total.

Another rare condition involved the situation n'nen all
resolutions h;'- the' Code Authority required the votes of more than a majoril
say three-fourths of its merfoers. This requirement of special majorities
for votes nithin the Code Authority ras used rhere very large firms rraived
their claim to a majority of votes, hut insisted on a veto. It r^as pre-
scri"bed for Code Authorities a,ppointed "by trade associations as T^ell as
for elected "boo.ies. Only 25 codes (3^ of the total) contained such a pro-
vision. Six of them rere in the largest 70 (11-^) and 7 rrere in the ITon-
Metallic Mineral Division,

( d) Administrative Results .

After these limits upon voting are considered, general
industry elections appear to have "been less of a factor in industrial
democracy' than uould "be imagined. In the 35 largest codes, covering one-
half of industry, onl^r five general elections nere ■orescri"bed. Votes rrere
ueighted in tvo of these; Transit and Trucking. A third, T7ool Textile,
required decisions "by a three-fourths' vote in the divisions. The last
t"7o, Silk Textile and Bonling rnd Billiard Operating, expressly limited
their suffrage to assenting memhers. In smaller industries, 'df course,
elections nere easier to conduct, and hence more common. There is no
evidence, horrever, that compliance rras more easily secured in code in-
dustries TThich elected their Code Authorities.

(*) See list in Ap'oendix.

9743

C. PnOPQKT I GLIAL ?J]F:i[i:STlvTAT 1 01' GUAPJU'T'EED .

1. G-E1;E?AL PPJIICIPLES .

( a ) liajor and l.inor C-roups lie-ore sent eel .

IIHA. has proved itself y.iore nodern than the average politi-
cal system l)y accepting the principle of representation for ^linority
groups. The najor ;3roups for rhich sucli representation rrojs ;orovided may
"bo classec as:

1. Functional (based on sane products, coiriodities or service)

2. Geographical (based on sa.ne locality)

3. Associational (najority gaaranteed to nenbers; ninority to

non-nenbers)

4. Size (ueighted voting)

Partial List of Linor Bases for Representation (*):

5. Race (Toneral Service Code requires one colored nenber)

6. xleli:;;ion (separate divisional code for Retail Kosher Lloat)

7. Lang'aage (G-raphic Arts in Hrj-.^aii ha.s se-parate division for

ideographic printers)

8. Price Range (Limited Price Vai'ie by Stores in Retail Trade and a

separate code for '.edron find Lorr Priced Jeuelrj')

S. I.'ethod of Sale (1 ail Order AsGOcia,tion of Aierica in Retail Trade)
Extra- Indus try Representation o f;

10. Labor Unions

11. Conswiers

12. HEA

13. Other Code Authorities

( b ) T^'Des to be Discussed .

Representation for i.iany of these interests has already been dis-
cussed. Thus, the system of functional division largely ensured that
concerns engaged in the sajne processes received separate representation.
Geographical divisions provided separate representa.tion for localities.
Weighted voting, in a sense protected the rights of a numerical minority

(*) Union affiliations is another basis, but the examples of it are

concealed beneath associationaJ groups in several textile apparel
codes, esDeciall^;^ hil liner:".

974

-42-

of large firms. Sponsorin.'^ trade associations desired such represen-
tation, pjid provided for it either oy setting up divisions (*) or "by
requiring that ono or more candidates "be nominated from some unorgan-
ized group, such as wholesalers, or nanufacturers on t".;e P^xific Coast,
If a trade associr.tion rras administering a code, it 3 "b^^-lars might be
expected to provide for sinilar representation ^'here necessary'-. This
section rill be chiefly concerned ^.-ith the type of representation rrhich
was not sought "by sponsoring trade associations hut "hich t/as inserted
at the rea^uest of USA. The chief t;;^es of such ^linority representa-
tion are for:

ITon-association neinhers of industry'

Labor unions

Consumers

IIEA

2. GUAPJUITEID KEPEESErTATIOi: TOR i:0!T-ASSOCIATION riilOHITIES.

(a) Importance of .Minoritie s.

ITon-association minorities los.rticipated, of course, in
general industry'- elections. The usual system, hov/ever, of nominating
say five candidates and having each concern vote for five, tended to
elect the majoritj^ slate as a v/hole nithout giving any representation
to the minority, even if it \7r.s of substantial size. Elections, more-
over, as already pointed out, involved considerable delay and expense.
Hence, many codes provided that a definite "lajority of Code Authority'-
members siiould be selected from trade association -^embers, but that an
equally definite minority shopld be selected from non-association mem-
bers to represent their interests. As a rule, the loroportion of non-
association men T;as rather less tha:! their proportion of the industry
production, since it uas e:coocted that cooperating firm.s rould join
the association and be rep re rented through it. The presence of even
one minority member on a Code Authority gave minorities more protec-
tion than they nould receive in sji ordinarj-- legislative body, because
the minority member if out-voted on an issue co'iild appeal to IIEA for
protection.

( "b ) i.:ethods of Selection .

Ton-association members r.-ere selected in several nays,
with slightly' different results. The most common r.ethod uas to have
them selected by and from their ovm munber. Often, because of their
disorganized sitiiation, it ras jrovidcd that non;^association members
might elect a representative if^ they so desired , but that if they tool:
no action, one might be appointed by IIPA.. Perhaps for the same rea-
son it ras sometimes provided that the non-association member should

(*) For the effect of "Division" on other forms of representation
see Section D, folloring.

9743

-43-

■be^.ecte6. "by the vote of association nenoers (*) or by the industry
as a vrhole. Occasionally, IIEA appointed minority reinresentatives in
the first instance. '

Table 14:

i.ietnods of Se^.ectin;., Non-Association Minority Representatives .

Elected by

Ilon-Ass'n. B.y Assn. or By Total Percent

Lenbers Industry IIRA

35 codes over 130,000 3 2 21

35 " 50 - 130,000 7 2 9

70 largest 10 4 2 16 21

886 codes and

supplenents 26S 51 31 351 40

Each of these nethods had its disadvantages, Guaranteed minorities,
nevertheless, cane nearer reproducing the industrial situation rrithin
Code Authorities than did other nethods of selections. They periiitted
the efficiency of the trade association najority to be tempered but not
blocked bj^ the votes of the minority.

3. EXTrA.-IlIDUSTRY rffiP:;J]SI^IITATI01I.

( a ) Administration Lenbers .

Whatever the composition of a Code Authority, its discre-
tion was checked in almost every case by the presence of government
representatives aTjpointed by I'llA luid called "Ac'jninistration i.'embers."
These members were appointed to practically all basic or numbered codes.
Thej^ were also authorised on supplenentarj' codes, and on n-nmerous func-
tional divisions. The3- nere not attached to geographic divisions
except in Lumber and Bituminous Coal Industries. These Adniinistration
Iviembers had the right to attend ever^^" official meeting of the Code
Authority and could rocommend suspending its action by reporting to
URA. I.iany actions of Code Authorities were thus suspended, and valua.ble
information secured for NRA.

(*) Since a representative normally' represents the men who

select him, this method of selecting non-association men
permitted the selection of com^ilaisant dummies. Thus,
in selecting the Code Authoritj^ for Porto Rico, the non-
association member chosen ^'qi^ the Association V7as not a
small baJier but a retired bpJrer of means v.no had been a
member of the Association ■'ontil his retirement.

9743

-44-

(Td) LaDor Representation .

Representatives of Labor 'jere given seats on the code auth-
orities of trenty-five indu'^. tries ^^hich manufactured apparel, and on
the code authorities of eleven other industries. These thirty-six
codes amounted to 4^ of all codes. Of the tuGnt„'-five Daoor reoresenta.-t'i
tives authorized in apparel codes, eleven nr.d no vote. Labor nen were
appointed as non-voting representatives on 17 other codes "by adminis-
trative order. It was ahle to force its way into the code authorities
of the industries in which laoor was tnorou/hly organi::ed 'before the
adoption of the code. The influence of such union members was frequent-
ly cast on the side of association ^lembers, who -//ere more likely to have
wage aiid hour agreements with tho ■a:iion, sue. were anxious to raise non-
association and non-union standards to arx equal level. Sometimes these
labor representatives were appointed by the dominant unions in the
industr;]^; at other times they were appointed by IHA. on the recommenda-
tion of its Labor Advisory Board. They differed from Administration
Members in that the3/- had the right to vote in many cases. Their pre-
sence on a code authority amouritcid to a guarantee that compliance with
labor rules would be vigorously pursued.

( c ) Consumer Representation .

In 10 nuiabered codes only, a code author! tj'' member was ap-
pointed to represent the interest of consumers. Six of these codes
were in the Pood Division. The majority were approved late in 1934.
Four of these members were nominated for iIRA appointment by the KRA.
Cons"umers' Advisory Board in the following codes:

No. 467- Cigar Manufacturing Industry
" 462- Wholesale Tobacco Trade
" 466- Retail Tobacco Trade
" 445- Baking Inc'ustrj'

Others vrere selected from various groiros. Thus for the Anti-Hog
Cholera Serum Industry?-, the Secretary of Agriculture chose a consumer
representa.tive. Farmers' Coo]peratives were represented on the Seed
Trade Code Authority. Similarly, a nominee of the American Bowling
Congress was to serve on the Code Authority of llo. 346, Bowling and
Billiard Operating Code Authoritj^. The Shoe Rebuilding Trade,
provided for consumer representatives on its local committees. Finally,
on all ticket distributing questions, the Legitimate Theatre Code Auth-
ority permitted the attendance of representatives of the l"!'ational
Theatre Ticket Distributors, Inc., aJid of the Theatre Ticket Brokers
Association of IJev; York City. Such consumer representatives might be
expected to scrutinize carefully the administration of trade practice
rules, and to prevent undue increase in price.

( 0-) Representatives of Other Code Industries .

Both in theory and practice the adoption and administration of code
rulee by one indue try might affect the interests of other code indus-
tries. The establisnment of numerous "coordinating committees" testi-
fies to this interrelationship. Only in exceptional cases, however,

9743

-45-

T7as the representative of one code industry made a nenber of the code
authority of another group. The Luj"ioer ciid Tinher Products Industry-
provided in its code authority re.culations that one representative
of lumber wholesalers and one of lu.iher retailer? should sit on its
code authority. The Precious Jewelry i^anul^acturin^^ and iledi-'am and Loxr
Priced Jewelry Manufacturing Industries each allowed a representative
of the other industry'- to sit on its code authority. The Retail To-
"bacco Code specified that its code authority should include one repre-
sentative from the Diug Trade and one iron retail G-rocnry. Pinally,
the Copper Industry Code Authority had rr:Ong its members one man ap-
pointed "oy the Code Authority for the Cop-ier and Brass hill Products
Industry, and one appointed by the TTire and Cable Subdivision of the
Electrical hanuf acturing Induntr^?-. Fnile formal representation of
this t;>npe is rare, industries must have secured plenty of mutual repre-
sentation through the overlapping membership of trade associations and
code industries. All such re^jresentation, like the labor and consumer
members, contributed to the stability of code authorities by giving
outside groups an influence on code decisions commensurate with their
financial interest in such decisions.

9743

-46-

D. HIirOR METHODS . • •

1. appoiiitt,i:nt by ijea.

If industry nembers dcsirred a code, "but could not agree on
a Code Authority, NPA undertook to fill the ^^ap. Sixteen (*) codes were
thus administered. In the majority'- the menbers of the Code Authority
were either naried in the code, or were to "be ap^oointed later by the Pre-
sident or the Adninistrator. The Petroluem and Motion Picture Codes were
outstanding examples of governmental appointrients iiiade necessary "by dis-
sensions at the time the code was approvc^^.c To meet the emergency of the
resignation or removal of the industr-'' menhers of a Code Authority, a
General Code Authority was also set up composed of IIRA representatives.
It could step into any vacancy and ad-iinister any code until new elections
or until the Code Authority arrived at sone other solution. The Cotton
G-arment and Retail Solid Fuel Industries were the largest industries thus
administered. A few smaller one such as the Industry'-, Schiffi, the Hand
Machine Embroidery, Shuttle Manufacturing, the Ring Traveller Manufacturing
Industry, and Horse Hair Dressing Industry, entrusted their administration
to this General Code Authority. In one agitated industry (Live Poultry,
a Code Supervisor was ap-^ointed joirtly by ITPA and the Secretary of Agri-
culture. He had full power to administer the code with the assistance
of an industry advisoi^'- committee. Like the other appointments, this was
done to meet ?,n emergency situation.

2. APPOIITTMENT BY DIYISIOIIAL CODS AUTHORITIES.

(a) SimDle ApDointment

Federa.ting numerous small industries or geographical divisions
under one central Code Authority raised serious problems of representation.
When groups were sufficiently separate to ba set up as self-governing div-
isions, they naturally desired separate representation. Hence 31 codes,
7 of them large, provided th-'^t the central Code Authority should be composed
of members each one of v;hom wai either the chairman of a Divisional Code
Authority or elected by that body.

(b) Double Appointment .

Still other steps in elections were prescribed in some codes.
Thus the Egg Case Subdivision sent its representative to constitute, with
6 others, the Wooden Package Division Code Authority, which sent one re-
presentative to the Lumber and Timber Products National Code Authority,
Similarly, the Dallas Local printers Club elected one representative to the
Texas Zonal Code Authority which helped to choose the directors of the
United Typothetae of America, an association which was the Code Authority
of the Commercial Relief Printing Industry, and contributed 7 members to
the National Relief Printing Appeal Board which, in turn, designated 10
out of the 20 members of the National Graphic Arts Coordinating Committee,
which dealt direct with NRA.

(*) See list in Appendix.

9743

-47-

( c ) Pro"blems of Reprerentation.

This system of selecting Code Authorities tended to limit
the nature of minority representn,tion. For example, the Y/holesaling
or Distribution Trade was split into 23 supplementary (divisional) code
industries. Each Divisional Code Authority* elected one o"" more menbers
to the General Code Authority, Of the Divisional Code Authorities 4 T7ere
elected, 2 appointed by one association, 12 had an association majority
with a self~elected minority, and 5 an association majority with a
minority appointed by NRA, Sone of the sup;-)lementary codes in this Trade
were still further sub-divided. Thus Wholesale Dry Goods was split into
7 commodity divisions and 7 "territorial membership zones. The commodity
divisions each ap-oointed one member to the General ITliolesaling Code
Authority, and also one each to the Divisional Code Authority. Territorial
divisions each sent one representative to the Divisional Code Authority,
to which the directors of the Wholesale Dry Goods InstitutB appointed five
more members.

In estimating the composition of the General Wholesaling
Code Authorit^^, it is clear that commodity minorities v/ere thoroughly
represented through their trade associations. Even so small a group as
the Notions TTholesaling Subdivision of the Wholesale Dry Goods Association
received a representative. Geographical minorities, however, as represent-
ed by the 7 ■■ erritorial zones in Wholesale Dry Goods Association did reach
the General Code Authority. Non-associational minorities, likewise, though
represented on 17 out of 23 Divisional Code Authorities, were not normally
elected to the General Code Authority, because the majority in each Div-
isional Code Authority was selected from an Association. If labor or con-
sumer representatives had been on Divisional Code Authorities they too
would be squeezed out by this process. The national Code Authority might
easily contain 100^ of New York trade association members without any of
the minority representation which ITPA desired. Moreover, minority repre-
sentation could not be transferred from each division vrithout doubling or
trebling an already unwieldy General Code Authority, Soraev/hat similar
results occurred where elected State Code Authorities elected one member
to a National Code Authority, as in the Code for the Motor Vehicle Main-
tenance Trade. Each region was then represented on their National Code
Authority, but there was no room left for functional or non-associational
minorities. Selecting Code Authorities by or from divisions tended to des-
troy minority representation,

(d) Other NRA Solutions .

Other IIEIA codes were split into divisions but met their
representation problem in another viay. At lea.st three other methods were
employed. In the Trucking Industry, for example, the members of several
regions (each 3 or more States) sent delegates to an electoral college.
Four such delegates were chosen in each region by a majority vote of a
convention of State Code Authorities in each region. One each of such
delegates had to be a regular route common carrier, one a contract operator,
one a local cartage opera,tor, and one from some other functional group.
This electoral college elected to the National Code Authority one member
from each region. Other codes such as Fisheries and Fabricated Metals
Industries concealed the machinery of representation by having divisional

9743

-48-

associations federated into one iDasic association Trhich appointed the
Basic Code Authority, Still other codes added a fen minority repre-
sentatives to the l^ational Code Authority, Thus, the Code Authority of
the Motor Vehicle detailing Trade nas c.omToosed of the chairmen of the
State Advisory Conntittees, plus 5 used-car dea,lers. Finally the Machinery
and Allied Products Industry for;^ot its divisions entirely rfaen electing
its Basic Code Authority and sent out "ballots for a mail election at
large. This last arrange-nent nas simple out rould not ensure any minority
representation unless comhined r^ith the sj^^stem enployed by the Brush
Manufacturing Industry. (*) This T7as the classic Eare System of Pro-
portional Representation nhich allons industry members to form their orm
groups, and automatically gave each ten percent of the industry a repre-
sentative on the Code Authority, (**)

(*) See Administrative Order 360-54 for details.

(**) The Hare System of Preferential voting is designed to permit

ea.ch substantial minority to form its ovzn group, and to secure
representation proportionate to its numbers. Nominations are
made by petition, so tliat from tnenty to forty names can appear
on the ballot. Voters are directed to mark their first, second,
third, etc. choices, on as many names as they please. Ballots
are then counted ?Jid collected into piles according to the first
choice^ expressed on each one. To elect nine men (the usual
number) all candidates uho are designated as first choice on
one-tenth of the total number of ballots cast, are declared
elected and their ballots set aside. The candidate r^ith the
least number of first-choice ballots is then eliminated, and
his ballots distributed among the surviving candidates, accord-
ing to the second choices expressed on them. If some of the
second choices on such ball.ots are for men already decls.red
elected, the ballots are added to the pile of the candidate
indicated on them as the next choice of the voter. If this
distribution of ballots gives any candidate a full tenth of
the total vote cast, he is declared elected. The process
continues, eliminating the candidate ^'ith least votes after
each distribution, until nine men have been declared elected.
These constitute the committee. The system is easier to
operate than to describe, and is often used in America in
connection rith city-manager plans for municipal government.

9743

-49-

- COl'TELTT OF iT.I.R.A. ADMIIIISTRATIVS I^GISLATIOIT -

PART D.
Administr, ,tivc Provisions in the Codes

(Tr.iDlc of Contents)

1, SUl'IIviARY ty Codes of Regional, Str.tjc District r.nd Locn,l

Agencies r.ct-ii.:illy set up "by M-^.y 1935.

2, TABLES of Special Powers Granted to Code Authorities of the

70 Largest Industries Arranged According to the
Method of Selection, ',s follows:
A.- Trade Associations Select All Code Authority MomlDers.
B.- General Industry Elections Held for Code Authority MemlDers.
C- Majority of Code Authority Mein'b..rs Gui.^rantecd to Trade

Associations; Minority to l'on~Association Memhers.
D.- Divisional Code Authorities Appoint Ir.tional or

Basic Code Authorities,
E.- IIRA Appoints Code Authorities,

3, LISTS of Codes Cont fining the Rarer Af'T.iinistrative Provisions,
A.- All Industry Kfcmbcrs arc Code Authority Members,

B,- Code Authorities Appointed "by ITRA or ITamed in Code,
C,~ Codes Providing for Cumulative Voting for Code Authority,
D.- Special Majorities Required for Votes "by the Code Authority,
E,- Textile Codes with Le-hor Representation,
F,- Other Codes with Lahor Representation,
G.- Codes with Consuaer Representation,

H,~ Code Authorities Authorized to Interpret Their Code,
I,- Codes with Liquidated Dania-ges Previsions,
9743

-50-
J.- Codes G-rr.nting Their Code Authorities Gencr-^J Power to
Add Minor Rules Affecting Trade Prp.ctices, With-
out IIEA Approvr,!,

4, TEXT of Comrnon Administrative Provisions,

5, Explanation of Attached Charts of
Administrative Provisions in Codes.

6, Charts of Administrative Provisions,

A. Summaries of Organization, and Powers and Duties, in
70 Major Code Industries, and in all Code Indiistries,
Including Supplements and Divisions.

B. Organiz.^.tion ^f Code Authorities in 35 Largest Indus-
tries E-.ch Employing Over 130,000 Viforl:ers.

C. Organization of Code Authorities in 35 Industries Em-
ploying 50 - 150,000 Workers.

D. Powers and Duties of Code Authorities in 35 Largest
Industries, each Ein-oloyiiig Over 150,000 Workers.

E. Pov/ers and Duties of Code Authorities in 55 Industries
Each Employing 50,000 to 130,000 Workers.

9743

APPEliDIX 1-

1 • Simnn-^.ry " by Cod es of Regiona l ,Stp.tc, District or

Local Code Authority Ar'X.ncics

24 - Bit-uminous Coal

31 - Lime

33 - Retail Lmil:cr & Build-
ing Material

39 - Farm Eouipmcnt

40 - Electric Storage & Wet
Priirr.ry Battery

43 - Ice

5 Eivision.al, 17 SuDdivisional,
4 District

16 Lime Industry Manufacturing
Districts

32 Divisional, 409 Trade Practice
Complaints Comrnittees

2 Regional Compliints Boards,
8 Division-.il Complaints Bon,rds

25 Regional Com]:)laints Boards

43 Committees of Arbitration and
Appeal

46 - Motor Vehicle Retailing 54 State Advisory Committees

52 ~ Mutu£?J Savings Br.nl^

15 Regional Code Authorities,
19 Crrou-p Code Authorities

60 - Retail Trade

60 - Retail Drug Trade

61 - Industrial Supplies €:

l/Iachi no r y D i s t r i but i ng

64 - JJress Manufacturing
67 ~ Fertilizer

51 St.ate Code Authorities,
787 Local Code Authorities

341 Local Code Authorities

31 Regional Committees

8 Industrial Adjustm.cnt Agencies

12 Zone Committees

84- 1-1 Electro-Plating & Metal 12 Regional Code Committees
Polishing & Metal Finishing

109 - Crushed Stone, Sand &
Gravel

118 - Cotton Garment

16 Regional Committees, 70 District
Committees, 48 State Committees

11 Regional Compliance Committees

123 - Structural Cl.ay Products 5 Joint .Regional Committees,

43 Regional Committees

9743

■52-

124- Motion Pict-aro

139- Mn.chinc Tool & Eqiiipincnt
Listribiiting

141- Investment B.-.nl:crs

142- Retail Jewelry

164- Knitted Outerwear

167- Sot Up P^pcr Box

176- Paper Dictrituting Trade

31 Grievance Boards, 34 Clearance
and Zonin^i^ Boards

5 Zone Supervisory Ai^encies with

5 Zone Supervisors, 14 Su"b-Zonc
Agencies, 13 Trading Area
Coinraittccs.

17 P.egion/.l Comniittccs

215 Local Code Authority Agencies

6 District Trade Practice
CoiTTolaintr Committees

18 Divisional Complaints Committees

7 RcgionpJ CoiTimittecs, 36 Area
Sub-Committees

182- Retail Food & Grocery Code)

Authority )695 Local Code Authorities

196- Tnolesalc Pood & Grocery f~)

Code y

197- Retail Farm Equipment

201-C Comiiiercial Stationery &
Office Outfitting Trade

2 Divisional Code Authorities

15 Regional Code Authorities, 14
Sub-Regional Code Authorities,
2 Tr.j.dc Practice Complaints Com-
mittees

201-G Ra,dio Tnolesaling 56 District Agencies

201-1 Leather & Shoe .jTindings 36 Regional Corainittces

217- Dental Lc.boratory Distrib- 12 Regional Code Authoritie!
uting

219-Bedding Manufacturing

223- Construction Machinery
Distributing Trade

234- i.Iacaroni

244-A General Contr .ctin^-^

30 Zone Grievance Committees with
30 2one Directors

20 District Committees

6 Regional Industrial Adjustment
Agencies

49 State Administrative Agencies,
314 Local Agents

244-B p-^inting, Papcrhanging & 325 Local Code Authority Agencies
Decorating

9743

-53-

244-P Electrical Contracting

244-1 Pl-um"bing Contracting

244- J Resilient Flooring
Contracting

244-P Heating, Piping cz Air
Conditioning

265- Coffee

277- Gray Iron Fo-undry

278-Trucking

280- Retail Solid Fuel
288-Resta-urant

286-Beauty C^ Barber Shop
Equipment Supplies

12 Regional Code Authorities,
96 District Code Authorities,
360 Local Adjninistro.tive Agencies

39 State' Compliance Committees,
464 Zone Compliance Committees

15 Administrative Committees

11 Regional Committees, 52 Local
Administrative Agencies,

22 Sta,te Administrative Committees

16 Regional Code Authorities
30 Chr.pt ers

48 State Code Authorities,

12 Rcgionals

49 Divisional Code Authorities

33 State Code Authorities, 33
District Code Authorities

11 Regional Gomjnittees each with
an attorney manager

287-A-l Commercial Relief Print- 17 Zone Committees, 104 Regional
ing Offices

.287 A-2 ITon-Metropolitan llcws- )

paper Publishing ) 4-7 State Code Authorities

287 A-5 Daily ilewsi^aper Publish-)

ing cand Printing )

287 D-3 Advertising Typo£,r.'^phy 1 Zone

287 E-2 Bank & Commercial
Stationery

287 E-5 Label Manufa-cturing

287 D-1 Trade Typesetting

314- Wholesale Coal

6 District Committees,
10 Sub-District Committees

2 Regional Code Authorities

3 Regional Code Authorities

1 Regional Code Authority plus
5 Coordination Committees to
work with Retail Solid Fuel

364-Clay Drain Tile Manufacturing 4 ''.Regional Code Authorities
365-Sand, Lime & Brick 7 Regional Code Authorites

366-Retail Monument

16 Regional Code Authorities

9743

-F-A"

399-HouseholcL Goods Storage &
Moving Trade

14 Regional Adminictrative Boards

406~Boat Building Sz Boat Repair- 5 Divisional Code Authorities
ing

421-Mar'ble Quarrying & Finishing 1 Regional Committee

19 Local 'Trade Practice Com-
"olaints Committees

&46-C^nning

449- Wholesale Monumental Granite 9 Divisional Control Committees

458-Wholesale Confectioners'

462-Wholesale TolDacco Trade

499-Rcfrigcrated Warehousing

543-Motor Vehicle IJainte nance
Trade

LP-10 B:.'ewiHg

IiP-14 Country Grain Elevator

LP- 17 Fneat Flour Milling

lP-18 TTnolesale Fresh Fruit &
Vegetable Distributive

287-Law Printing

445-Bal-:ing

10 Zone Conimittccs , 84 Local
Code Authorities

20 Divisional Code Authorites
each with a Code Supervisor
and one or more Regional
Directors, 47 Regional Direct-
ors, 156 Local or Area Code
Authority Agencies

8 Regional Trade Practice Com-
plaints Coninittees

45 Tempo rn,ry State Comraittees

17 Regional Labor Boa.rds
(never recognized)

2 Regional Code Authorities,
9 State Code Authorities

10 Regional Committees, each
with one Regional Director

55 Local Committees

11 Zone Directors

40 Regional Code Authorities

9743

-55-

AP?Eia)IX - 2 TABLES OP SPECIj\i PO<iEl^S

?able A ^1

Special Pouerc of Code Authorities Selected iDy or
From Trade. Associations in fO Largest Industries.

1. Cotton Textile

U. Electrical Mfg.

9. Lumber & Timber

11. Iron and Steel

l6. Hosiery

-I?. Automobile Mfg»

2U. Bituminous Coal

33 • Retail Lumber

37* Builders' Supp.

UU. Boot and Shoe

• 60. Retail Trade

82. Steel Casting

SU. Fabricated tict,
— - •

101, Cleaning, etc»

105. Automotive Parts

lis. Cotton Garment

120. Paper & Pulp

123. Structural Clay

IU5. Furniture

122. Retail Food

196. Wholesale Food

Vol-

In-

un-

spect

tary

Rec-

Ass.

ords

Conf. In-

Agent ter—

is T/A pret

or Secy . Code

Add Grant

Minor Minor

Tr/Pr Exempt

Rules tions

£/

2I
a/

X X

97U3

-56-

Table A (Cont'd) :

ay..

Special Povrers of Code Authorities Selected "by or
From Trade Asrociations in 7^ Largest Industries,

Vol-

In- ■.■■

Conf.

In-

Add

Grant

un-

spect

Agent

ter-

Minor

tary

Rec-

is ?/a

pret

Tr/Pr

Exempt

Ass*

ords

or Secy.

Code

Rules

tions

2UU. Construction

275. Chemical Mfs.

3O8. Fishery

373. Infants' Weoj.-

UU5. Baking

5UO. Retail Meat

LP-8 Grain E-^:chan£:es

Totals: 2g Colos:

a/ The powers selected for this table are those uhich r.llow the

greatest discretion to the Code Authority, Voltmtary collection
of assessments is also included, "because that is characteristic
of the strongest trade associations. Provisions whose meaning is
doubtfull are listed to permit investigation and verification.

b/ Article X.

c_l Schedule H, para^'raph P.

d/ Article VIII, (e).

e/ Article VIII, E.

f/ Through the Industrirl. Committee, Article :\V or Special Administrator,
Appendix A.

£/ Article VI, (e), "Allouable Cost."
h/ Article VI, (g)

57^3

-57-

Table B

Special Powers of Code Authorities Selected "by
G-enerrl Election Among JO Largest Industries,

Vol- In- Conf ♦ In- • Add . Grant

un- spect Agent tei-«» • Minor . Minor

tary Rec- is T/A pret Tr/Pr Exemp-

Ass. ords or Secy , Code Rules tions .

2. Shipbuilding, etc* x

3. Wool Textile x
21. Leather x

28, Transit x x

k'S* Ice X

lU?, SlikrTextilSi x

IU7. Motor Vehicle x

I7U. Rubber Tire x x x

27s. Trucking

297* Advertising, Distr, x

3^6, Bowling, etc, x

3U7. M API X XX

399» Household Goods, etc, x

UOl, Copper XX x

^U6, Canning

U7U. Needlework in P, R,

LP-18 Alcoh. Bev. IThols,

Totals: 17 Codes, 9 5 3 3

97H3

Table C

-58-

Code Ar.tliorities ^ith Guaranteed Tr-c.e Acsociation
Majoritien and Non-Association Ilinorities in 70
Lari^est Codes.

1 5 . lien ' s CI o t hi n-;;

23 . Unde rwe ar , etc.

Uy. Banlcers

Gk, Dress

66. Motor Bas

121. Hotel

277. Gray Jron ITdy.

2S0. Eota.l .-:.ol. 2"ael

281. Lsrii'XL/ Trade

2S2. He St -^1- rant

392. Real I's-:;. J^cl:.

U5S. Bottled Soft Drin]

U67. Cigar Mfg.

LP-IS Wliol. Ft, ?ruit

Vol-

In-

Conf.

In—

Add

Grant

un-

spect

Agent

ter-

Minor

tary

Rec-

is T/A

"oret

Tr/Pr.

ExemD-

Ass.

ords

or Secy,

Code

Rules

tions

Totals: ik Codes:

97^+3

-59-

Table D.

Code An.thorities Appointed by Divisional Code
Authorities in 70 Largest Industries*

U6. Motor Veliiclo
156. Rubber life.

201. miolesslin^, etc

287 • Graphic Arts

330* Scrap Iron, etc.

362. Photographic, etc.

5^3* Motor Yeh, li.iiint.

Vol- In- Conf.

un- spect Agent

t??ry Rec-
Ass. ords

IS T/A

or Sec:/'.

In- Add Grfint-

ter- Minor Minor

pret . Tr/pr, Exenip-

Code Rules tions a

Totals: 7 Codes.

Table E.

Specir.1 Powers of Code Authorities Appointed
by IJPA, Among 70 Largest Industries.

10. Petroleum

I2U. Motion Picture

Vol- In-

Conf.

In-

Add

C-rant

un- spect

Agent

ter-

Minor

Mi no r

tary Rec-

is T/A

pret

Tr/Pr.

Exemp-

Ass. ords

or Secy.

Code

Rules

tions

393. Barber Shop

Totals: 3 Codes.

97^3

50-

APPENDIX - 3. LISTS OF CODIilS CONTAINING THE RA.RER ADMINISTRA.TIVE ■

PROVISIONS.

A. CODES FROVIDINCt THAT ALL LSLBERS OF INDUSTRY SHALL 35 ON
CODE AUTHORITY .

31-A Dolomite Division of Lime Code

207 Ball Clay Production

326 Fibre Wallboard

353 Insulation Board

365 Sand Lime Brick

409 Flexible Insulation

533 Window Glass

186 End Grain Strip Wood Block

383 Toothpick

405 Shoe Form Division of Shoe Last

269 Carbon Black •■■■

492 Stereotype Dry Mat

347-X Roller & Silent Chain

385 Railroad Special Track Equipment

517 Ring Traveller

453 Licorice

491 Imported Green Olive

14 Rayon & Synthetic Yarn

303 Cordage & Twine
84-F-l Hog Ring & Ringer Manufacturing

83 Office Equipment

243 Slide Fastener

344 Metal Lath —

B . CODES NAJ^ilNG COD E AU THORITY IN THE CODE OR PROVIDING THAT
IT SHALL BE APPOINTED BY ITO A

Named in Code ;

124 - Motion Picture

12 - Photographic Manufacturing
129 - Radio Broadcasting"

Appointed by ITRA or
Other Government Agency:

10 - Petroleum (from industry nominations)
184 - Shoe and Leather Finish (half only)

29 - Artificial Flower and Feather
398 - Barber Shop Trade

LP-12 Live Poultry Industry (one Administrator appointed
by NRA jointly with Secretary of Agriculture)

9743

•-dI-

Under General
Code Authority:

517 " Ring Traveller

518 - Shuttle Manufacturing

534 - Horse Hair Dressing

535 - Brattice Cloth

280 - Retail Solid Fuel (when Code Authority resigned)

118 - Cotton Garment (Code Authority removed)

239 - Porcelain Breakfast Furniture Assembling (Code

Authority resigned)
256 - Schiffli etc., Embroidery (Code Authority resigned)

C. C ODES FROVIDIIIG FOR CUK^^LATIVS VOTIIIG FOR CODE AUTHORITY -

361 Perfume, Cosmetic, etc.

391 Insecticide & Disinfectant

545 Botanical Drug

545 Essential Oil

545 Spirit & Oil Soluble Gum . ■

545 Vanilla Bean

545 Water Soluble Gum

233 Railway Brass Car, etc.

320 Hide & Leather Working Machine

376 Air Valve

265 Coffee

349 Mayonnaise .. . . '

378 Peanut Butter . .. ."

464 Cocoa & Chocolate

475 Yeast

546 Pacific Coast Dried Fruit . ■ .

547 Seed Trade .

548 Package Cheese
188 Velvet

287 C-3 Securities & Bank Note Engraving

287 E_9 Playing Cards , .

447 Private Home Study School

201-V Wholesale Jewelry

314 Wholesale Coal . .

487 Importing Trade ...

D. CODES WITH PROVISION REQUIRING SPECIAL MAJORITIES IN VOTES
WITHIN CODE AUTHORITY. . .

401

Copper

Asbestos

189

Coated Abrasives

326

Fibre Wallooard

353

Insulation Board

420

Gypsum

533

Window Glass

541

Flat Glass

9743

-62-

481 Wood Preserving

339 Printing Ink

174 Rubber Tire

347-X Roller & Silent Chain

385 Railroad Special Track Equipment

349 f.'a^onnaise

516 Flavoring Products

3 Wool Textile

14 Rayon & S;/nthetic Yarn

451 Candlerick Bedspread

21 Leather

84-B Hand Chain Hoist

84-D Electric Industrial Truck Manufacturing

480 Structural Steel & Iron Fabricating

162 Domestic Freight

101 Cleaning & Dyeing

33 Retail Lumber

E. LABOR RZPRESENTATIQII 01! NRA CODES
1. Voting Members .

A. Textile Apparel.

Industry

Blouse & Skirt
Cap & Cloth Hat
Coat & Suit

Cotton G-arment
Covered Button
Dress

Hosiery

Ladies' Handbag
Leather cS: Woolen
Knit Glove
Men' s Clothing
Merchant & Custom
Tailoring
Millinery
Undergarment^'^
Negligee

Wom^en's Neckwear
& Scarf

Nominating Agency

a/
L. A. B.
L. A. B.

International Ladies

G-arment Workers Union

L. A. 3. 4'

L. A. B. 1

International Ladies 3

Garment Workers Union

L. A. B. 2

L. A. B. 1

L. A. B. 2

L. A . B. 5

(L. A. B. ) 1

(Journeymen's Tailor's Union) 1

L. A. B. 2

L . A. B . 2

Number of Labor
Representatives

2
2
2

a/ NRA Labor Advisory Board

9743

-63-

Industry

Burlesque

Legitimate Theatre

Motion Picture
Motion Picture
Laboratory
Radio Broad- i
casting I

B. Amusement Industries

Nominating Agency

Brewing
Cigar
Plumbing
Contracting

Transit

Designated by
Administrator

Unions Designated in

Code

By Employees' Nomination

By Em.ployees' Nominf>tion

Number of Labor
Representatives

(for each class of
employe when consider-
ing in their problems)

(.Same as Burlesque)
(Same as Burlesque)

By Employees' Nomination (Same as -burlesque)

C. Miscellaneous.

Employees
L. A. B.
United Assn. ,
Journeymen Plumbers &
Steamf it ters .
Administrator

1
3

2. Without Vote.

A. As a Result of Provisions in Codes

Industry

Ai'tificial Flower

& Feather

Corset & Brassiere

Cotton Cloth Glove

Fur Manufacturing

Hat Manufacturing

Hjittei'i' Fur Cutting

Infants & Children'^s ••

Wear

Light Sewing

Men' s Neckwear

Nottingham Lace Curtain

Pleating, Stitching &

Bonnaz

Schiffli Hand Mach.

Emb. Thread, etc.

Retail Solid Fuel

Nominating Agency

Number of Labor
Representatives

t. A. B.

L, AwB.

Li A. B,

L. A, B.

L. A. B.

ii A. B.

L. A. B.

Amalgamated

Lace Operators

of Amer. '(Curtain Sec.)

L. A. B.

L. A, B.

9743

-64-

B. Ey Administrative Order

Industry Number of Labor
^ • Representatives

Barber -Shop 1

Bituminous Coal 1
Construction: (Mast.er)

Painting, F. H. , etc. 1

Electrical Cont.. - 1

Mason Cont. " 1

Corrugated & Solid Fibre 1

Cotton Textile • 1

Fur Dressing & Dyeing '1

Handkerchief 1

Luggage & Fancy Leather 1

Restaurant 1

Retail Tobacco 1

Retail Trade 1

Saddlery 1

Scrap Iron ; ■\' *. 1

Shipbuilding '' ^ 1

Wholesale Tobacco 1

G. CODES PROVIDING FOR CONSUMER-REPRESENTATION ON CODE AUTHORITY

LP-7 Anti-Hog Cholera Serum

445 Baking .v' :.

467 Cigar Manufacturing

547 Seed Trade

8 Legitimate Full Length Drama

346 Bowling & Billiard Operating Trade

462 Wholesale Tobacco Trade

60-A Booksellers Trade ' ' • :

60-B Retail Custom Fur Manufacturing ■"'.'■

466 Retail Tobacco Trade

H . CODES GRAI^TTING TO CODE AUTHORITY POWER TO. INTERPRET CODE .

11 Iron and Steel

425 Manganese

442 Lead " , ":

31 Lime " ' .

36 Glass Container

Lumber & Timber Products

120 Paper and Pulp

172 Rayon & Silk Dyeing ' . ,

202 Carpet and Rug

235 Textile Processing

132 Malleable Iron

480 Structural Steel & Iron Fabricating

141 Investment Bankers

9743

-65^

124 Motion Picture

487 Importing Trade

33 Ret?iil Lumter

142 ?.et?;il Jevelry

287 Graphic Arts

I . CODES CONTAIinNG V.ODEL F 3m':I SSIVE LIQ.UIDATBD DAivAGES
FROV ISIOIT OF D3FAHTUHE FROh SUCH MODEL PROVISION .

99 Asphalt Shingle & Roofing

11 Iron and Steel

11-Cl Wire Reinforcement

92 Floor & Wall Clay. Tile

302 Candle Manufacturing

85 American Petroleum Equipment

258 Cast Iron Boiler

234 Macaroni
445 Baking

202 Carpet and Rug

84-A Metallic Wall Structure

84-C Chain Manufacturing

84-H Hack Saw Blade

84-Hl Wire Rope and Strand

237 Alloy Casting

354 Small Arms t- Ammunition

127 Reinforcing Materials Fabricating

495 Steel Joists

480 Stri ctural Steel and Iron Fabricating

346 Bovling & Billiard Operating Trade

37 Builders' Supplies Trade

J. COD ES GRAIITIirG TO CODE AUTHORITY GEl'SR AL POWER TO ADD MINOR
TRADE PRACTICE PROVISIONS WITHOUT R5FERENCE TO N R A

11 Iron and Steel

10 Petroleum

3 Wool Textile

172 Rayon & Silk Dyeing

235 Textile Processing

355 Rug Chemical Processing Trade
16 Hosiery

118 Cotton Garment

58 Cap & Closure

88 Business Furniture

124 Motion Picture

101 Cleaning & Dyeing

362 Photograph & Photo Finishing

163 Wholesale Automotive

525 Retail Trade in Hawaii

9743

-66-

APPEinDIX 4

4. TIXT OP COLIiON aDI.IIITISTRATIVE PROVISIONS.

The follo\"ing administrative provisions arc standard and are in-
serted in r.nm^r codes. Their content is ocst ejqplained in their own
words,

(a) True Representation .

In order that the Code Authority shall at all tines "be truly
representative of the industry, and in other respects conply with the
provisions of the Act, the Adninistrrtor jiay provide such hearings as
he may deeu proper; and, thereafter, if he shall find that the Code
Authority i:-, not truly reiDresentn.tive or does not in other respects
comply with the provisions in the Act, he rnav require an ap"oropriate mod-
ification in the method of selection of the Code Authority,

("b) Lip."bility of Code' Authority .Hemhers .. :

iTothing contained in this code shsll constitute the raemlDers
of any Code Authority partners for rjiy loru-oose, nor shall any memher
of any Executive Coniiittee he liable in any manner to anyone for any
act of any other memher officer or employee of such Executive Coiimittee,
Nor shall <?jny memDcr of any Executive Con/iittee, exe^rcising reasonable
diligence in the conduct of his duties hereunder, he liable to anyone
for any act or omission to act under this code except for his own mal-
feasance or nonfeasance,

•(c) NRA Power to Review Any Act ion.

The Code An.thorit;' shall have the following powers- and duties
to the extent -^emitted by the Act; provided, that, if the Administrator
shall determine that any action of the Code Aathority or any agenc-?- there^
of is unfair or unjust or contrary to the public interest, the Adminis-
trator na"/" require thrt such action be susiDended to afford an opportun-
ity for investigation of the merits of such action and further consid-
eration by the Code Avthority or agency pending final action, which
shall not be effective unless the .Adrainistrptor approves or unless he
shall fail to disapprove after 50 days' notice to him of intention to
proceed v/ith such action in its original or modified form.

(Code No, 415, Commercial Fixture Industry, May 3, 1934.)

(d) Model Code Provisions . (1670. l)

It being found necessary in order to support the administra-
tion of this code and to maintain the standards of fair competition es-
tablished hereunder and to effectuate the policy of the Act, the Code
Authority is authorized:

To incur such reasonable obligations as are (1670. ll)
necessary- and proper for the foregoing our-ooses, and to meet such

9743

-67-

o'bligations out oS funds Which may "be raised as hereinafter pro-
vided and which shall be held in trust for the purposes of the
Code;

. To submit to the Administrator for his approval, sub- (1670.12)
ject to such .notice and opportunity to be heard as he may deem
necessary (l) an itemized bud£;et of its estimated expenses for
the foregoin,'^ purposes, and (s) an equitable basis upon which
the funds necessary to sxi-oport such budget shall be contributed
by members of the trade/ industry;

After such budget and basis of contribution have been (1670.13)
approved by the Administrator, to determine and obtain cq^uitable
contribution as above set forth by aJl members of the trade/ industry,
and to that end, if necessary, to institute legal proceedings there-
for in its ovm nrme.

3ach m.eraber of the trade/ industry shall pay his or (1670.14)
its oquitable contributicn to.' t^ic ojqijense a of the maintenance
of the Code Authority, determined as hereinabove lorovided, and
subject to rules and regulations pertaining thereto issued by
the Ad:rainistrator. Only members of the trade/ industry complying
with tne code and contributing to the expenses of its adminis-
tration as hereinabove provided, (unless duly exempted from
making such contributions,) shall be entitled to participate in
the selection of members of the Code Authority or to receive the
benefits of any of its voluntary activities or to make use of any
emblem or insignia of the National Recovery Administration.

The Code Authority shall neither incur nor pay any ob- (1670.15)
ligation substantially in excess of the amount thereof as
estimated in its approved budget; and shall in no event ex-
ceed the total amount contained in the approved budget exce-^t
upon approval of the Administ.rator; and no subsequent budget
shall contain any deficiency item or expenditures in excess of
prior budget estimates except those which the Administra-cor shall
have so ap;o roved.

Section 2. Emergency Provisions, (a) if the
Administrator, after investigation shall at any time find both
(l) that an emergency has arisen within the Industry adversely
affecting small entciprises or wages or labor conditions, or
tending tov/ard monopoly or other acute conditions which tend to
defeat the purposes of the Act; and (2) that the determination
of the stated minimum price for a specified product within the
Industry for a limited period is necessary to mitigate the con- -
ditions constituting such emergency d^\C to effcct-'oate the pur-
poses of the Act, the Code Authority ma.y cr.use an imipartial
agency to investigate costs and to recoirj.iOnd to the Adminis-
trator a determination of the stated minimum -^rice of the product
affected by the em.ergency and thereupon the Acministrator may

9743

~ob-

proceed to determine such stated minim-um price, ("b) When the (1704.2
Administrator shall have determined such minimum price for Cont'd)
a specified product for a stated "oeriod, v;hich price shall
be reasonably calculated to' mitigate the conditions of such
emergency and to effectuate the purooses of the National In-
dustrial Hecovery Act, he shall publish such price. Thereafter,
during such stated period, 'no member of the Industry shall sell
such specified products at a net realized price belov/ said stated
minimum price and any such sale shall be deemed destructive price
cutting. From time to time, the Code Authority may recommend
TcvieT^f or reconsideration or the Adjninistrator may cause any
determinations hereunder to be reviewed or reconsidered and
appropriate action taken.

(f) In addition to infomiaticn required to be submitted
to the Code Authority there shall be furnished to government
agencies such statistical information as t.he Administrator may
deem necessary for the purposes recited in Section 3(a) of the
National Industrial Recovery Act,

(Office Order ITo. 34, September 12, 1933.)

(g) Vlilfrdly Destructive Price Cutting . (Model Code

1703.1)
Any member of the Industry or of any other
Industry or the customers of either may at any time complain to
the Divisional Code Authority that any filed price constitutes
unfair competition as destructive price-cutting, imperiling
•small enterprise or tending toward monopoly or the impairment
of code wages and working conditions. The Code Authority shall
within 5 days 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;|3apers shall be referred
to. the Research and Planning Division of the National Recovery
Administration which shall render a report and recommendation
thereon to the National Industrial Recovery Board.

(h) Short Form of Liquidated Damage Agreement . (Code No. 84 C

March 27, 1935)
Any member of the Industry may enter into an
agreement with any other member or members of the Industry pro- ^
viding for the pa;yTiient of liquidated damages by any party there-
to upon violation by him of any provision of the Code; provided, j
however, that such agreement shall become effective and binding j
on the parties thereto only after the execution thereof shall
have received the consent of the National Recovery Administration.

(i) Code Coordination .

"To appoint a trade practice committee which shall
meet v/ith the trade practice comm.ittccs appointed under such

9743

'--69-

other codos as may "be related to tlie trade/industry for the pur-
pose of formula tiriig fair trade -oractices to govern the re-
lationships betv/een ■oroduction and distritution 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,"

(Required hy Office Order Ho. 66, Fehruary 2, 1C34.)

9743

-70-
APPENDIX 5

• 5. EXPLAIUTICN OF GlIAZTS 0? ADi.:iNI3T-lATIV3 PROVISIONS

Tliese charts sinmnarize the most significant administra-
tive provisions in all l'2A Codes. On sheet A the "Condensed Statement"
combines the headings most frequently referred to in this study en the
"representative character" and "powers and duties" of Code Authorities.
The second set of totals summarizes in greater detail the organization
provisions for Code Authorities in the same codes. The third set of
totals summarizes the powers and duties granted to those Code Authori-
ties.

Slieets 3 and C score the representation and organization
of the 70 major industries (over 50,000 employees) under the same
headings as the second set of totals on saeet A. Slieets D and a.
score the powers and duties of the 70 major industries under the same
headings as the third set of totals on sheet A.

No attempt is made to record the administration of codes
subsequent to final approval of their provisions. Fnere, for example,
the method of selection of a Code Authority is to be determined subse-
quent to the approval of the code as a whole, the administrative order
approving the final method has been read and recorded. '^Ilhere, however,
a code authorizes the establisliment of Regional Code Authorities, no
statement has been made about whether any regional s were actually set
up.

The total of codes whose "Representative Organization"
is recorded are: —

576 numbered codes

201 supplementary codes

109 product divisions with separate
Code Authorities

886 total recorded.

In recording the "Powers and Duties" the product divi-
sions are omitted, because their powers are the same as those of the
parent code. Geographical divisions are not recorded, because their
organization and powers are set up uniformly in the parent code.

The letter "X" under a heading indicates that a main
code prescribes that form of organization, or grants that power. The
letter "D" indicates that the power is granted to one or more of its
Divisional Code Authorities; "XD" indicates that the power is granted
in the main code for its divisions. "X \- D" indicates it is granted
in both the main code and the divisions.

Percentages in sheet A are calculated on the basis cf
70 for the major codes. For minor codes they are calculated on a

-71-

"basis of 886 for the organization and 777 for the powers and duties.
The 70 largest cedes include all "inajor" codes and cover roughly three-
fourths of all industry eligible for codes. The lcn.rg3st 35 (s"'^.eets 3
and D) cover approximately one-half of all such industry.

The code provisions were not uniform in phrasing.
Headings, therefore, have been set up according to their significant
effect. Thus, the heading "All Code Authority Members Selected 3y or
From One Trade Association" includes cases where the Code Authority
was the trade association, or was its code committee, or was elected
by trade association members.

Sometimes the meaning of a provision was in doubt.
This occurred fairly often in sheets C and E. Thus, in Code ITo. 347,
the assessment provision sounds mandatory but was interpreted to be
voluntary. The preliminary scoring of these codes was done by the
Legal Division, and doubtful cases scored according to the opinion of
the chief of the Legal Checking Section. If there was doubt whether
a code gave a power (tlxis occurred freouently in the "power to add trade
practices") the code was scored so txiat c, reader could look it up and
form his own opinion.

Similarly, on sheets B and D, where a general election
was to be held but four of the men elected must be from a trade asso-
ciation and one a non-association :,ieraber, the code is checked under
"minority representation" not under tae heading of an election.

On sheets B and D, headings 6 and 7 should be read to-
gether. Heading 6 covers only cases in which National Code Authority
members were actually appointed by Divisional Code Authorities.
vYliere National Code Authority members v/ere elected in geographical or
product divisions, or where they were nominated and voted upon nation-
ally but one or more must be members of certain divisions, the code
has been scored under No. 7, "Divisions of Special Importance," so
that the reader raiglat look up the exact method if interested.

The Powers and Duties selected for tabulation, on
sheets C and E, are chosen for the amount of discretion which they
allow to Code Authorities. Subjects well covered by Post-Code Analysis
publications (such as use of labels and orice policies) have been
omitted. Of the subjects included in tae tabulation, those in the
first group were marked as important by inclusion in the Model Code
as published in NRA Manual. The significance of those in the other
groups is based on tiie amount of discussion and complaints v/nich they
have caused.

9743

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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 he
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, sha'l make available for the protection and promotion of
the public interest an adetiuate review of the effects of the Administration of
Title I of the National Inc. .strial Recovery Act, and ti j principles and policies
put into effect thereunder, and shall otherwise aid the ^resident in carrying out
nis 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 secti.ns 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 cede formation including an acccvnt of the
sp )ns ring 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 cede 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 fo rmation
and administration.

The Code Histories, (including histories of certain NRA units or agencies) are not
mimeographed. They are to be turned over to the Department of Commerce in typewritten form.
All told, approximately eight hundred and fifty (850) histories will be completed. This
number includes all of the approved codes and seme of the unapproved codes. (In Work Mate -
rials No 18 . C ontent s 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 .

- li -

set forth the origination of the code, the sponsoring group, the evidence advanced to sup-
port the proposal, the report of the Division of Research and Planning on the industry, th*
recomniendations 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 inforaation relating to amendments, interpretations, exemptions, and other rulings. The
materials mentioned in this paragraph v.-ere of course not a part of the work of the Division
of Review. )

TKE WORK MATERIALS SERIES

In the work of the Division of Review a considerable numler of studies and compilation!
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 W aterj,als No 17. Te ntative O utlines and Summaries of
S tudies in Process , these materials are fully described).

Industry S tudies

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.

- ill -

Women's Apparel Industry, Some Aspects of the

Tra de P ractic e Stud ies

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 Ccffee 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 (1924-1936): A classification for

comparison with Trade Practice Provisions of NRA Codes.

Labor Stjidies

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, Homeworkers Survey

Administrativ e Studies

Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con-
ditional Orders of Approval

Administrative Interpretations of NRA Codes

Administrative Law and Procedure under the NIRA

Agreements Under Sections 4(a) and 7(b) of the NIRA

Approved Codes in Industry Groups, Classification of

Basic Code, the — (Administrative Order X-61)

Code Authorities and Their Part in the Administration of the NIRA
Part A. Introduction

Part B. Nature, Composition and Organization of Code Authorities
Part C. Activities of the Code Authorities
Part D. Code Authoriti- 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 Provi ions and Related Subjects, Policy Statements Concerning

Content of NIRA Administrative Legislation

Part A. Executive and Administrative Orders

Part B. Labor Provisions in the Codes

Part C. Trade Practice Provisions in the Codes

Part D. Administrative Provisions in the Codes

Part E. Agreements under Sections 4(a) and 7(b)

Part F. A Type Case: The Cotton Textile Code
Labels Under NRA, A Study of

Model Code and Model Provisions for Codes, Development of
National Recovery Administration, The: A Review 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 of 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 Prograun

Legal Studies

Anti-Trust Laws and Unfair Competiti n

Collective Bargaining Agreements, the Right of Individual Employees to Enforce Provisions of

ommerce Clause, Possible Federal Regulation of the Employe r-Emplo yee 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 P ssibility 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

irade 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.

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STUDIES SERIE S

The Evidence Studies were originally undertaken to gatl.er 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
>^oncerned with the nature, size and operations of the industry; and with the relation of the
iiidustry to interstate com-uerce. 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 studios
follows: "^^

Automobile Manufacturing Industry

Automotive Parts and Equipment Industry

Baking Industry

Boot and Shoe Manufacturing Industry

Bottled Soft Drink Industry

Builders' Supplies Industry

Canning Industry

Chemical Manufacturing Industry

Cigar Manufacturing Industry

Coat and Suit Industry

Construction Industry

Cotton Garment Industry

Dress Manufacturing Industry

Electrical Contracting Industry

Electrical Manufacturing Industry

Fabricated Metal Products Mfg. Industry and

Metal Finishing and Metal Coating Industry

Fishery Industry

Furniture Manufacturing Industry

General Contractors Industry

Graphic Arts Industry

Gray Iron Foundry Industry

ilosiery 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
Needleworl; 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 establishments, firms, employment, payrolls, wages, hours, production capacities, ship-
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports.
They also include notes on the principal qualifications that should be observed in using the
data, the technical methods employed, and the applicability of the material to the study of
the industries concerned. The following numbers appear in the series:
9675.

- vl -

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