INTERNATIONAL LABOUR OFFICE
STUDIES AND REPORTS
Series B (Economic Conditions) No. 19
NATIONAL
RECOVERY MEASURES
IN THE
UNITED STATES
GENEVA
1933
Published in the United Kingdom
For the INTERNATIONAL LABOUR OFFICE (LEAGUE OF NATIONS)
By P. S. KING & SON, Ltd.
Orchard House, 14 Great Smith Street, Westminster, London, S.W. 1
PRINTED BY ALBERT KUNDIG
GENEVA.
CONTENTS
Page
INTRODUCTION
vu
Part I:
A.
Legislative Measures
TEXTS OF LAWS:
National Industrial Recovery Act
Agricultural Adjustment Act and Emergency Farm Mortgage
Act
Emergency Railroad Transportation Act: Title I
Federal Emergency Relief Act
Unemployment Relief Act
National Employment Service Act
B.
SUMMARY OF OTHER RECOVERY MEASURES
Part II:
A.
23
51
59
63
65
70
Industrial Codes
TEXTS OF CODES:
President's Reemployment Agreement
Retail Trade:
Substitute
Presidential
Agreements
Cotton Textile Industry
Wool Textile Industry
Shipbuilding and Shiprepairing Industry
Electrical Manufacturing Industry
Coat and Suit Industry
Theatrical Industry
Iron and Steel Industry
Petroleum Industry
Photographic Manufacturing Industry
Automobile Manufacturing Industry
Bituminous Coal Industry
B.
3
LIST OF CODES APPROVED
77
Reemployment
84
90
101
106
110
117
126
138
164
187
192
197
223
INTRODUCTION
The present Report consists in the main of a compilation of the
principal legislative measures fundamental to the National Recovery
Programme in the United States, together with a number of Industrial Codes adopted under the National Industrial Recovery Act.
The Report falls into two parts. The first part gives the texts
of six Acts having a more or less direct bearing upon industry and
labour: the National Industrial Recovery Act; the Agricultural
Adjustment Act embodying the Emergency Farm Mortgage Act;
the Emergency Railroad Transportation Act (Title 1); the Federal
Emergency Relief Act; the Unemployment Relief Act; and the
National Employment Service Act. These texts are followed by a
summary account of other legislative measures entering into the
Recovery Programme which, while highly important in themselves,
are nevertheless not so directly related to industrial and labour
questions.
The second part reproduces the texts of the President's Reemployment Agreement (the so-called " Blanket Code "), the modifications of this Agreement approved for certain retail trades, and
a selection, in chronological order, of the first Codes of Fair
Competition to be adopted under the National Industrial Recovery
Act. A list is also given of the various Codes approved up to
20 September 1933.
No attempt has been made to analyse or comment upon either
the Acts or the Codes. In the case of two of the most important
Acts (the National Industrial Recovery Act and the Agricultural
Adjustment Act and Emergency Farm Mortgage Act), charts have
been prepared with the intention of indicating the main provisions
of these measures in a convenient and summary form. It should
be noted, however, that neither these charts nor the summaries of
the Acts not reprinted in full are intended as an interpretation.
What it is desired to do is to set before the reader the original
documents essential to any adequate comprehension of the action
now being taken in the United States.
In order to facilitate the task of those whose interest is primarily
in the labour provisions of the Recovery Programme , it may be
Vili
INTRODUCTION
useful to indicate where the most important passages bearing on
this matter are to be found. Section 7 of the National Industrial
Recovery Act contains passages relating to collective bargaining,
minimum wages and maximum hours of work of the very greatest
importance. In the same Act the provision for a large public
works programme (Sections 201-206, 220) is no less significant.
The labour clauses in the Emergency Railroad Transportation Act
(Section 7) are. noteworthy. The provisions for employment and
relief set out in the Federal Emergency Relief Act of 1933, the
Unemployment Relief Act and the National Employment Service
Act likewise call for attention. In reading them it is necessary
to bear in mind that no general scheme of unemployment insurance
is in operation in the United States.
Among the Codes, the so-called " Blanket Code " is of special
interest inasmuch as it may be taken as representing what the
National Recovery Administration presumably considers as the
" norm " of labour conditions. Among the various Industrial Codes
reprinted, Section VII of the Automobile Code, relating to collective
bargaining, has attracted special attention. Section 8 of the Coat
and Suit Industry Code, with its provision for representation of
trade unionists, is likewise remarkable.
Finally, it should perhaps be emphasised that these various
measures, as they stand, are to a great extent subject to time
limits. The National Industrial Recovery Act is in force for two
years, and one of its most important provisions (Section 4) for
one year. The President's Reemployment Agreement is effective
only until 31 December 1933. The Codes, in a number of cases,
are open to revision after a period of ninety days.
It is hoped to publish later a further volume containing documents illustrating any modifications and developments of the
American Recovery measures.
PART I
LEGISLATIVE MEASURES
President may license business enterprises and withdraw licence in event of unfair
competition. (S. 4.)
Codes exempt from antitrust laws. (S. 5.)
Imports may be restricted
if they are held to endanger
Codes. (S. 3 (e).)
Industrial associations must
give President account of acti• vities and President may impose rules upon associations.
(S. 6.)
Codes of Fair Competition
Codes to include provisions
relative to collective bargaining, maximum hours and minimum wages. President authorised if need be to fix labour
standards. (S. 7.)
Codes to be submitted by
Industrial associations.
If
tbey do not, President may
impose Codes. (S. 3.)
$25 million revolving fund
for subsistence homesteads,
for redistribution of industrial •
population. (S. 208.)
NATIONAL INDUSTRIAL
RECOVERY ACT
Federal Emergency Administration of Public Works set
up. (S. 201.)
Comprehensive programme
of public works to be prepared; including housing and
slum clearance. (S. 202.)
President given power to
regulate oil transportation.
(S. 9.)
$3,300 million appropriation
made. (S. 220.)
Public Works
Certain taxes imposed.
(SS. 2H-19.)
Grants may be made to
States, municipalities and
other public bodies. (S. 203.)
Secretary of
authorised to
Second Liberty
sinking fund
(S. 210.)
Specific grants for certain
purposes — highways, national park roads, etc.
(SS. 204-5.)
Provisions re labour employed on public works; thirty
hour week prescribed. (S. 206.)
The National
Industrial
Recovery Act is effectioe for two years except
business undertakings) which is for one year only.
the Treasury
borrow under
Bond Act, and
provided for.
S. 4 (licensing
of
A.
TEXTS
OF LAWS
NATIONAL INDUSTRIAL RECOVERY ACT
[PUBLIC—No. 7 6 — 7 3 D CONGRESS]
[H. R. 5755]
AN ACT
To encourage national industrial recovery, to foster fair competition, and to
provide for the construction of certain useful public works, and for other
purposes.
Be it enacted by the Senate and House of Representatives
United States of America in Congress assembled,
of the
TITLE I—INDUSTRIAL RECOVERY
DECLARATION OF POLICY
SECTION 1. A national emergency productive of widespread unemployment and disorganization of industry, which burdens interstate
and foreign commerce, affects the public welfare, and undermines
the standards of living of the American people, is hereby declared
to exist. It is hereby declared to be the policy of Congress to remove
obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof ; and to provide for the
general welfare by promoting the organization of industry for the
purpose of cooperative action among trade groups, to induce and
maintain united action of labor and management under adequate
governmental sanctions and supervision, to eliminate unfair competitive practices, to promote the fullest possible utilization of the
present productive capacity of industries, to avoid undue restriction
of production (except as may be temporarily required), to increase
the consumption of industrial and agricultural products by increasing purchasing power, to reduce and relieve unemployment, to
improve standards of labor, and otherwise to rehabilitate industry
and to conserve natural resources.
ADMINISTRATIVE AGENCIES
SEC. 2. (a) To effectuate the policy of this title, the President is
hereby authorized to establish such agencies, to accept and utilize
such voluntary and uncompensated services, to appoint, without
regard to the provisions of the civil service laws, such officers and
employees, and to utilize such Federal officers and employees, and,
4
TEXTS OF LAWS
with the consent of the State, such State and local officers and employees, as he may find necessary, to prescribe their authorities,
duties, responsibilities, and tenure, and, without regard to the
Classification Act of 1923, as amended, to fix the compensation of
any officers and employees so appointed.
\b) The President may delegate any of his functions and powers
under this title to such officers, agents, and employees as he may
designate or appoint, and may establish an industrial planning and
research agency to aid in carrying out his functions under this title.
(c) This title shall cease to be in effect and any agencies established
hereunder shall cease to exist at the expiration of two years after
the date of enactment of this Act, or sooner if the President shall
by proclamation or the Congress shall by joint resolution declare
that the emergency recognized by section 1 has ended.
CODES OF FAIR COMPETITION
SEC. 3. (a) Upon the application to the President by one or more
trade or industrial associations or groups, the President may approve
a code or codes of fair competition for the trade or industry or subdivision thereof, represented by the applicant or applicants, if the
President finds (1) that such associations or groups impose no
inequitable restrictions on admission to membership therein and are
truly representative of such trades or industries or subdivisions
thereof, and (2) that such code or codes are not designed to promote
monopolies or to eliminate or oppress small enterprises and will not
operate to discriminate against them, and will tend to effectuate the
policy of this title: Provided, That such code or codes shall not
permit monopolies or monopolistic practices : Provided further, That
where such code or codes affect the services and welfare of persons
engaged in other steps of the economic process, nothing in this
section shall deprive such persons of the right to be heard prior to
approval by the President of such code or codes. The President may,
as a condition of his approval of any such code, impose such
conditions (including requirements for the making of reports and the
keeping of accounts) for the protection of consumers, competitors,
employees, and others, and in furtherance of the public interest,
and may provide such exceptions to and exemptions from the
provisions of such code, as the President in his discretion deems
necessary to effectuate the policy herein declared.
(b) After the President shall have approved any such code, the
provisions of such code shall be the standards of fair competition for
such trade or industry or subdivision thereof. Any violation of such
standards in any transaction in or affecting interstate or foreign
commerce shall be deemed an unfair method of competition in commerce within the meaning of the Federal Trade Commission Act, as
amended ; but nothing in this title shall be construed to impair the
powers of the Federal Trade Commission under such Act, as
amended.
(c) The several district courts of the United States are hereby
invested with jurisdiction to prevent and restrain violations of any
NATIONAL INDUSTRIAL RECOVERY ACT
5
code of fair competition approved under this title ; and it shall be
the duty of the several district attorneys of the United States, in
their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and restrain such
violations.
(d) Upon his own motion, or if complaint is made to the President
that abuses inimical to the public interest and contrary to the policy
herein declared are prevalent in any trade or industry or subdivision
thereof, and if no code of fair competition therefor has theretofore
been approved by the President, the President, after such public
notice and hearing as he shall specify, may prescribe and approve
a code of fair competition for such trade or industry or subdivision
thereof, which shall have the same effect as a code of fair competition approved by the President under subsection (a) of this section.
(e) On his own motion, or if any labor organization, or any trade
or industrial organization, association, or group, which has complied
with the provisions of this title, shall make complaint to the
President that any article or articles are being imported into the
United States in substantial quantities or increasing ratio to
domestic production of any competitive article or articles and on
such terms or under such conditions as to render ineffective or
seriously to endanger the maintenance of any code or agreement
under this title, the President may cause an immediate investigation to be made by the United States Tariff Commission, which
shall give precedence to investigations under this subsection,
and if, after such investigation and such public notice and hearing
as he shall specify, the President shall find the existence of such
facts, he shall, in order to effectuate the policy of this title, direct
that the article or articles concerned shall be permitted entry
into the United States only upon such terms and conditions
and subject to the payment of such fees and to such limitations
in the total quantity which may be imported (in the course of
any specified period or periods) as he shall find it necessary to
prescribe in order that the entry thereof shall not render or tend
to render ineffective any code or agreement made under this title. In
order to enforce any limitations imposed on the total quantity of
imports, in any specified period or periods, of any article or articles
under this subsection, the President may forbid the importation of
such article or articles unless the importer shall have first obtained
from the Secretary of the Treasury a license pursuant to such regulations as the President may prescribe. Upon information of any
action by the President under this subsection the Secretary of the
Treasury shall, through the proper officers, permit entry of the
article or articles specified only upon such terms and conditions and
subject to such fees, to such limitations in the quantity which may
be imported, and to such requirements of license, as the President
shall have directed. The decision of the President as to facts shall
be conclusive. Any condition or limitation of entry under this subsection shall continue in effect until the President shall find and
inform the Secretary of the Treasury that the conditions which led
6
TEXTS OF LAWS
to the imposition of such condition or limitation upon entry no
longer exists.
(/) When a code of fair competition has been approved or prescribed by the President under this title, any violation of any provision thereof in any transaction in or affecting interstate or foreign
commerce shall be a misdemeanor and upon conviction thereof an
offender shall be fined not more than $500 for each offense, and each
day such violation continues shall be deemed a separate offense.
AGREEMENTS AND LICENSES
SEC. 4. (a) The President is authorized to enter into agreements
with, and to approve voluntary agreements between and among,
persons engaged in a trade or industry, labor organizations, and
trade or industrial organizations, associations, or groups, relating
to any trade or industry, if in his judgment such agreements will
aid in effectuating the policy of this title with respect to transactions
in or affecting interstate or foreign commerce, and will be consistent
with the requirements of clause (2) of subsection (a) of section 3 for a
code of fair competition.
(b) Whenever the President shall find that destructive wage
or price cutting or other activities contrary to the policy of this
title are being practiced in any trade or industry or any subdivision
thereof, and, after such public notice and hearing as lie shall specify,
shall find it essential to license business enterprises in order to make
effective a code of fair competition or an agreement under this title
or otherwise to effectuate the policy of this title, and shall publicly
so announce, no person shall, after a date fixed in such announcement, engage in or carry on any business, in or affecting interstate or
foreign commerce, specified in such announcement, unless he shall
have first obtained a license issued pursuant to such regulations as
the President shall prescribe. The President may suspend or revoke
any such license, after due notice and opportunity for hearing, for
violations of the terms or conditions thereof. Any order of the
President suspending or revoking any such license shall be final if
in accordance with law. Any person who, without such a license
or in violation of any condition thereof, carries on any such business for which a license is so required, shall, upon conviction thereof,
be fined not more than §500, or imprisoned not more than six
months, or both, and each day such violation continues shall be
deemed a separate offense. Notwithstanding the provisions of
section 2 (c), this subsection shall cease to be in effect at the expiration of one year after the date of enactment of this Act or sooner
if the President shall by proclamation or the Congress' shall by
joint resolution declare that the emergency recognized by section
1 has ended.
SEC. 5. While this title is in effect (or in the case of a license, while
section 4 (a) is in effect) and for sixty days thereafter, any code,
agreement, or license approved, prescribed, or issued and in effect
under this title, and any action complying with the provisions
NATIONAL INDUSTRIAL RECOVERY ACT
7
thereof taken during such period, shall be exempt from the provisions of the antitrust laws of the United States.
Nothing in this Act, and no regulation thereunder, shall prevent
an individual from pursuing the vocation of manual labor and selling
or trading the products thereof; nor shall anything in this Act,
or regulation thereunder, prevent anyone from marketing or trading
the produce of his farm.
LIMITATIONS UPON APPLICATION OF TITLE
SEC. 6. (a) No trade or industrial association or group shall be
eligible to receive the benefit of the provisions of this title until it
files with the President a statement containing such information
relating to the activities of the association or group as the President
shall by regulation prescribe.
(b) The President is authorized to prescribe rules and regulations
designed to insure that any organization availing itself of the benefits of this title shall be truly representative of the trade or industry
or subdivision thereof represented by such organization. Any organization violating any such rule or regulation shall cease to be entitled
to the benefits of this title.
(c) Upon the request of the President, the Federal Trade Commission shall make such investigations as may be necessary to enable
the President to carry out the provisions of this title, and for such
purposes the Commission shall have all the powers vested in it with
respect of investigations under the Federal Trade Commission Act,
as amended.
SEC. 7. (a) Every code of fair competition, agreement, and license
approved, prescribed, or issued under this title shall contain the
following conditions: (1) That employees shall have the right to
organize and bargain collectively through representatives of their
own choosing, and shall be free from the interference, restraint, or
coercion of employers of labor, or their agents, in the designation of
such representatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection; (2) that no employee and no one seeking employment shall be required as a condition of employment to join any
company union or to refrain from joining, organizing, or assisting
a labor organization of his own choosing; and (3) that employers
shall comply with the maximum hours of labor, minimum rates of
pay, and other conditions of employment, approved or prescribed
by the President.
(b) The President shall, so far as practicable, afford every opportunity to employers and employees in any trade or industry or subdivision thereof with respect to which the conditions referred to in
clauses (1) and (2) of subsection (a) prevail, to establish by mutual
agreement, the standards as to the maximum hours of labor, minimum rates of pay, and such other conditions of employment as may
be necessary in such trade or industry or subdivision thereof to
effectuate the policy of this title ; and the standards established in
such agreements, when approved by the President, shall have the
8
TEXTS OF LAWS
same effect as a code of fair competition, approved by the President
under subsection (a) of section 3.
(c) Where no such mutual agreement has been approved by the
President he may investigate the labor practices, policies, wages,
hours of labor, and conditions of employment in such trade or
industry or subdivision thereof ; and upon the basis of such investigations, and after such hearings as the President finds advisable, he
is authorized to prescribe a limited code of fair competition fixing
such maximum hours of labor, minimum rates of pay, and other
conditions of employment in the trade or industry or subdivision
thereof investigated as he finds to be necessary to effectuate the
policy of this title, which shall have the same effect as a code of fair
competition approved by the President under subsection (a) of
section 3. The President may differentiate according to experience
and skill of the employees affected and according to the locality of
employment; but no attempt shall be made to introduce any classification according to the nature of the work involved which might
tend to set a maximum as well as a minimum wage.
(d) As used in this title, the term " person " includes any individual, partnership, association, trust, or corporation; and the terms
" interstate and foreign commerce " and " interstate or foreign commerce " include, except where otherwise indicated, trade or commerce among the several States and with foreign nations, or between
the District of Columbia or any Territory of the United States and
any State, Territory, or foreign nation, or between any insular
possessions or other places under the jurisdiction of the United
States, or between any such possession or place and any State or
Territory of the United States or the District of Columbia or any
foreign nation, or within the District of Columbia or any Territory
or any insular possession or other place under the jurisdiction of
the United States.
APPLICATION OF AGRICULTURAL ADJUSTMENT ACT
SEC. 8. (a) This title shall not be construed to repeal or modify
any of the provisions of title I of the Act entitled "An Act to relieve
the existing national economic emergency by increasing agricultural
purchasing power, to raise revenue for extraordinary expenses
incurred by reason of such emergency, to provide emergency relief
with respect to agricultural indebtedness, to provide for the orderly
liquidation of joint-stock land banks, and for other purposes ",
approved May 12, 1933 ; and such title I of said Act approved May
12, 1933, may for all purposes be hereafter referred to as the
" Agricultural Adjustment Act."
(b) The President may, in his discretion, in order to avoid conflicts in the administration of the Agricultural Adjustment Act and
this title, delegate any of his functions and powers under this title
with respect to trades, industries, or subdivisions thereof which are
engaged in the handling of any agricultural commodity or product
thereof, or of any competing commodity or product thereof, to the
Secretary of Agriculture.
NATIONAL INDUSTRIAL RECOVERY ACT
9
OIL REGULATION
SEC. 9. (a) The President is further authorized to initiate before
the Interstate Commerce Commission proceedings necessary to prescribe regulations to control the operations of oil pipe lines and to
fix reasonable, compensatory rates for the transportation of petroleum and its products by pipe lines, and the Interstate Commerce
Commission shall grant preference to the hearings and determination of such cases.
(b) The President is authorized to institute proceedings to divorce
from any holding company any pipe-line company controlled by
such holding company which pipe-line company by unfair practices
or by exorbitant rates in the transportation of petroleum or its
products tends to create a monopoly.
(c) The President is authorized to prohibit the transportation in
interstate and foreign commerce of petroleum and the products
thereof produced or withdrawn from storage in excess of the amount
permitted to be produced or withdrawn from storage by any State
law or valid regulation or order prescribed thereunder, by any board,
commission, officer, or other duly authorized agency of a State. Any
violation of any order of the President issued under the provisions
of this subsection shall be punishable by fine of not to exceed $1,000,
or imprisonment for not to exceed six months, or both.
RULES AND REGULATIONS
SEC 10. (a) The President is authorized to prescribe such rules
and regulations as may be necessary to carry out the purposes of
this title, and fees for licenses and for filing codes of fair competition and agreements, and any violation of any such rule or regulation shall be punishable by fine of not to exceed $500, or imprisonment for not to exceed six months, or both.
(b) The President may from time to time cancel or modify any
order, approval, license, rule, or regulation issued under this title ;
and each agreement, code of fair competition, or license approved,
prescribed, or issued under this title shall contain an express provision to that effect.
TITLE II—PUBLIC WORKS AND CONSTRUCTION
PROJECTS
FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS
SECTION 201. (a) To effectuate the purposes of this title, the
President is hereby authorized to create a Federal Emergency
Administration of Public Works, all the powers of which shall be
exercised by a Federal Emergency Administrator of Public Works
(hereafter referred to as the " Administrator "), and to establish
such agencies, to accept and utilize such voluntary and uncompensated services, to appoint, without regard to the civil service laws,
such officers and employees, and to utilize such Federal officers and
10
TEXTS OF LAWS
employees, and, with the consent of the State, such State and local
officers and employees as he may find necessary, to prescribe their
authorities, duties, responsibilities, and tenure, and, without regard
to the Classification Act of 1923, as amended, to fix the compensation
of any officers and employees so appointed. The President may delegate any of his functions and powers under this title to such officers,
agents, and employees as he may designate or appoint.
(b) The Administrator may, without regard to the civil service
laws or the Classification Act of 1923, as amended, appoint and
fix the compensation of such experts and such other officers and
employees as are necessary to carry out the provisions of this
title; and may make such expenditures (including expenditures for
personal services and rent at the seat of government and elsewhere,
for law books and books of reference, and for paper, printing and
binding) as are necessary to carry out the provisions of this title.
(c) All such compensation, expenses, and allowances shall be
paid out of funds made available by this Act.
(d) After the expiration of two years after the date of the enactment of this Act, or sooner if the President shall by proclamation
or the Congress shall by joint resolution declare that the emergency recognized by section 1 has ended, the President shall not
make any further loans or grants or enter upon any new construction under this title, and any agencies established hereunder shall
cease to exist and any of their remaining functions shall be transferred to such departments of the Government as the President shall
designate: Prodded, That he may issue funds to a borrower under
this title prior to January 23, 1939, under the terms of any agreement, or any commitment to bid upon or purchase bonds, entered
into with such borrower prior to the date of termination, under
this section, of the power of the President to make loans.
SEC. 202. The Administrator, under the direction of the President,
shall prepare a comprehensive program of public works, which shall
include among other things the following: (a) Construction, repair,
and improvement of public highways and park ways, public buildings, and any publicly owned instrumentalities and facilities; (b)
conservation and development of natural resources, including control, utilization, and purification of waters, prevention of soil or
coastal erosion, development of water power, transmission of electrical energy, and construction of river and harbor improvements
and flood control and also the construction of any river or drainage
improvement required to perform or satisfy any obligation incurred
by the United States through a treaty with a foreign Government
heretofore ratified and to restore or develop for the use of any State
or its citizens water taken from or denied to them by performance
on the part of the United States of treaty obligations heretofore
assumed: Provided, That no river or harbor improvements shall be
carried out unless they shall have heretofore or hereafter been
adopted by the Congress or are recommended by the Chief of Engineers of the United States Army; (c) any projects of the character
heretofore constructed or carried on either directly by public author-
NATIONAL INDUSTRIAL RECOVERY ACT
11
ity or with public aid to serve the interests of the general public ;
(d) construction, reconstruction, alteration, or repair under public
regulation or control of low-cost housing and slum-clearance projects; (e) any project (other than those included in the foregoing
classes) of any character heretofore eligible for loans under subsection (a) of section 201 of the Emergency Relief and Construction
Act of 1932, as amended, and paragraph (3) of such subsection (a)
shall for such purposes be held to include loans for the construction
or completion of hospitals the operation of which is partly financed
from public funds, and of reservoirs and pumping plants and for
the construction of dry docks ; and if in the opinion of the President
it seems desirable, the construction of naval vessels within the terms
and/or limits established by the London Naval Treaty of 1930 and
of aircraft required therefor and construction of heavier-than-air
aircraft and technical construction for the Army Air Corps and
such Army housing projects as the President may approve, and
provision of original equipment for the mechanization or motorization of such Army tactical units as he may designate : Provided,
however, That in the event of an international agreement for the
further limitation of armament, to which the United States is
signatory, the President is hereby authorized and empowered to
suspend, in whole or in part, any such naval or military construction
or mechanization and motorization of Army units : Provided further,
That this title shall not be applicable to public works under the
jurisdiction or control of the Architect of the Capitol or of any
commission or committee for which such Architect is the contracting
and/or executive officer.
SEC. 203. (a) With a view to increasing employment quickly
(while reasonably securing any loans made by the United States)
the President is authorized and empowered, through the Administrator or through such other agencies as he may designate or create,
(1) to construct, finance, or aid in the construction or financing of
any public-works project included in the program prepared pursuant
to section 202 ; (2) upon such terms as the President shall prescribe,
to make grants to States, municipalities, or other public bodies for
t h e construction, repair or improvement of any such project, but no
such grant shall be in excess of 30 per centum of the cost of the labor
and materials employed upon such project; (3) to acquire by purchase, or by exercise of the power of eminent domain, any real or
personal property in connection with the construction of any such
project, and to sell any security acquired or any property so constructed or acquired or to lease any such property with or without the
privilege of purchase : Provided, That all moneys received from any
such sale or lease or the repayment of any loan shall be used to retire
obligations issued pursuant to section 209 of this Act, in addition to
any other moneys required to be used for such purpose; (4) to aid in
the financing of such railroad maintenance and equipment as may
be approved by the Interstate Commerce Commission as desirable
for the improvement of transportation facilities; and (5) to advance,
upon request of the Commission having jurisdiction of the project,
12
TEXTS OF LAWS
the unappropriated balance of the sum authorized for carrying out
the provisions of the Act entitled "An Act to provide for the
construction and equipment of an annex to the Library of Congress ", approved June 13, 1930 (46 Stat. 583); such advance to be
expended under the direction of such Commission and in accordance
with such Act: Provided, That in deciding to extend any aid or
grant hereunder to any State, county, or municipality the President
may consider whether action is in process or in good faith assured
therein reasonably designed to bring the ordinary current expenditures thereof within the prudently estimated revenues thereof. The
provisions of this section and section 202 shall extend to public
works in the several States, Hawaii, Alaska, the District of Columbia, Puerto Rico, the Canal Zone, and the Virgin Islands.
(b) All expenditures for authorized travel by officers and
employees, including subsistence, required on account of any Federal
public-works projects, shall be charged to the amounts allocated to
such projects, notwithstanding any other provisions of law; and
there is authorized to be employed such personal services in the
District of Columbia and elsewhere as may be required to be engaged
upon such work and to be in addition to employees otherwise provided for, the compensation of such additional personal services to
be a charge against the funds made available for such construction
work.
(c) In the acquisition of any land or site for the purposes of
Federal public buildings and in the construction of such buildings
provided for in this title, the provisions contained in sections 305
and 306 of the Emergency Relief and Construction Act of 1932, as
amended, shall apply.
(d) The President, in his discretion, and under such terms as
he may prescribe, may extend any of the benefits of this title to any
State, county, or municipality notwithstanding any constitutional
or legal restriction or limitation on the right or power of such State,
county, or municipality to borrow money or incur indebtedness.
SEC. 204. (a) For the purpose of providing for emergency construction of public highways and related projects, the President is
authorized to make grants to the highway departments of the several
States in an amount not less than $400,000,000, to be expended by
such departments in accordance with the provisions of the Federal
Highways Act, approved November 9,1921, as amended and supplemented, except as provided in this title, as follows:
(1) For expenditure in emergency construction on the Federal
aid highway system and extensions thereof into and through municipalities. The amount apportioned to any State under this paragraph
may be used to pay all or any part of the cost of surveys, plans, and
of highway and bridge construction including the elimination of
hazards to highway traffic, such as the separation of grades at crossings, the reconstruction of existing railroad grade crossing structures,
the relocation of highways to eliminate railroad crossings, the widening of narrow bridges and roadways, the building of footpaths,
the replacement of unsafe bridges, the construction of routes to
NATIONAL INDUSTRIAL RECOVERY ACT
13
avoid congested areas, the construction of facilities to improve
accessibility and the free flow of traffic, and the cost of any other
construction that will provide safer traffic facilities or definitely
eliminate existing hazards to pedestrian or vehicular traffic. No
funds made available by this title shall be used for the acquisition
of any land, right of way, or easement in connection with any
railroad grade elimination project.
(2) For expenditure in emergency construction on secondary or
feeder roads to be agreed upon by the State highway departments
and the Secretary of Agriculture: Provided, That the State or
responsible political subdivision shall provide for the proper maintenance of said roads. Such grants shall be available for payment
of the full cost of surveys, plans, improvement, and construction of
secondary or feeder roads, on which projects shall be submitted by
the State highway department and approved by the Secretary of
Agriculture.
(b) Any amounts allocated by the President for grants under
subsection (a) of this section shall be apportioned among the several
States seven-eights in accordance with the provisions of section
21 of the Federal Highway Act, approved November 9, 1921, as
amended and supplemented (which Act is hereby further amended
for the purposes of this title to include the District of Columbia),
and one-eighth in the ratio which the population of each State
bears to the total population of the United States, according to the
latest decennial census and shall be available on July 1, 1933, and
shall remain available until expended; but no part of the funds
apportioned to any State need be matched by the State, and such
funds may also be used in lieu of State funds to match unobligated
balances of previous apportionments of regular Federal-aid
appropriations.
(c) All contracts involving the expenditure of such grants shall
contain provisions establishing minimum rates of wages, to be predetermined by the State highway department, which contractors
shall pay to skilled and unskilled labor, and such minimum rates
shall be stated in the invitation for bids and shall be included in
proposals for bids for the work.
(d) In the expenditure of such amounts, the limitations in the
Federal Highway Act, approved November 9,1921, as amended and
supplemented, upon highway construction, reconstruction, and
bridges within municipalities and upon payments per mile which
may be made from Federal funds, shall not apply.
(e) As used in this section the term " State " includes the Territory of Hawaii and the District of Columbia. The term " highway "
as defined in the Federal Highway Act approved November 9,
1921, as amended and supplemented, for the purposes of this section,
shall be deemed to include such main parkways as may be designated
by the State and approved by the Secretary of Agriculture as part
of the Federal-aid highway system.
(/) Whenever, in connection with the construction of any highway project under this section or section 202 of this Act, it is necess-
14
TEXTS OF LAWS
ary to acquire rights of way over or through any property or tracts of
land owned and controlled by the Government of the United States,
it shall be the duty of the proper official of the Government of the
United States having control of such property or tracts of land with
the approval of the President and the Attorney General of the
United States, and without any expense whatsoever to the United
States, to perform any acts and to execute any agreements necessary
to grant the rights of way so required, but if at any time the land
or the property the subject of the agreement shall cease to be used
for the purposes of the highway, the title in and the jurisdiction
over the land or property shall automatically revert to the Government of the United States and the agreement shall so provide.
(g) Hereafter in the administration of the Federal Highway Act,
and Acts amendatory thereof or supplementary thereto, the first
paragraph of section 9 of said Act shall not apply to publicly owned
toll bridges or approaches thereto, operated by the highway department of any State, subject, however, to the condition that all tolls
received from the operation of any such bridge, less the actual cost
of operation and maintenance, shall be applied to the repayment of
the cost of its construction or acquisition, and when the cost of its
construction or acquisition shall have been repaid in full, such bridge
thereafter shall be maintained and operated as a free bridge.
SEC. 205. (a) Not less than $50,000,000 of the amount made available by this Act shall be allotted for (A) national forest highways,
(B) national forest roads, trails, bridges, and related projects, (C)
national park roads and trails in national parks owned or authorized,
(D) roads on Indian reservations, and (E) roads through public
lands, to be expended in the same manner as provided in paragraph
(2) oi section 301 of the Emergency Belief and Construction Act
of 1932, in the case of appropriations allocated for such purposes,
respectively, in such section 301, to remain available until expended.
(b) The President may also allot funds made available by this
Act for the construction, repair, and improvement of public highways in Alaska, the Canal Zone, Puerto Rico, and the Virgin Islands.
SEC. 206. All contracts let for construction projects and all loans
and grants pursuant to this title shall contain such provisions as are
necessary to insure (1) that no convict labor shall be employed on
any such project; (2) that (except in executive, administrative, and
supervisory positions), so far as practicable and feasible, no individual directly employed on any such project shall be permitted to
work more than thirty hours in any one week; (3) that all employees shall be paid just and reasonable wages which shall be
compensation sufficient to provide, for the hours of labor as limited,
a standard of living in decency and comfort ; (4) that in the employment of labor in connection with any such project, preference shall
be given, where they are qualified, to ex-service men with dependents,
and then in the following order : (A) To citizens of the United States
and aliens who have declared their intention of becoming citizens,
who are bona fide residents of the political subdivision and/or county
NATIONAL INDUSTRIAL RECOVERY ACT
15
in which the work is to be performed, and (B) to citizens of the
United States and aliens who have declared their intention of becoming citizens, who are bona fide residents of the State, Territory, or.
district in which the work is to be performed : Provided, That these
preferences shall apply only where such labor is available and qualified to perform the work to which the employment relates; and
(5) that the maximum of human labor shall be used in lieu of
machinery wherever practicable and consistent with sound economy
and public advantage.
SEC. 207. (a) For the purpose of expediting the actual construction of public works contemplated by this title and to provide a
means of financial assistance to persons under contract with the
United States to perform such construction, the President is authorized and empowered, through the Administrator or through such
other agencies as he may designate or create, to approve any assignment executed by any such contractor, with the written consent of
the surety or sureties upon the penal bond executed in connection
with his contract, to any national or State bank, or his claim against
the United States, or any part of such claim, under such contract ;
and any assignment so approved shall be valid for all purposes, notwithstanding the provisions of sections 3737 and 3477 of the Revised
Statutes, as amended.
(¿>) The funds received by a contractor under any advances made
in consideration of any such assignment are hereby declared to be
trust funds in the hands of such contractor to be first applied to
the payment of claims of subcontractors, architects, engineers, surveyors, laborers, and material men in connection with the project,
to the payment of premiums on the penal bond or bonds, and premiums accruing during the construction of such project on insurance policies taken in connection therewith. Any contractor and
any officer, director, or agent of any such contractor, who applies, or
consents to the application of, such funds for any other purpose and
fails to pay any claim or premium hereinbefore mentioned, shall be
deemed guilty of a misdemeanor and shall be punished by a fine
of not more than $1,000 or by imprisonment for not more than one
year, or by both such fine and imprisonment.
(c) Nothing in this section shall be considered as imposing upon
the assignee any obligation to see to the proper application of the
funds advanced by the assignee in consideration of such assignment.
SUBSISTENCE
HOMESTEADS
SEC. 208. To provide for aiding the redistribution of the overbalance of population in industrial centers $25,000,000 is hereby made
available to the President, to be used by him through such agencies
a6 he may establish and under such regulations as he may make, for
making loans for and otherwise aiding in the purchase of subsistence
homesteads. The moneys collected as repayment of said loans shall
constitute a revolving fund to be administered as directed by the
President for the purposes of this section.
16
TEXTS OF LAWS
RULES AND REGULATIONS
SEC. 209. The President is authorized to prescribe such rules
and regulations as may be necessary to carry out the purposes of
this title, and any violation of any such rule or regulation shall
be punishable by fine of not to exceed $500 or imprisonment not to
exceed six months, or both.
ISSUE OF SECURITIES AND SINKING FUND
SEC. 210. (a) The Secretary of the Treasury is authorized to
borrow, from time to time, under the Second Liberty Bond Act,
as amended, such amounts as may be necessary to meet the expenditures authorized by this Act, or to refund any obligations previously issued under this section, and to issue therefor bonds, notes,
certificates of indebtedness, or Treasury bills of the United States.
(b) For each fiscal year beginning with the fiscal year 1934 there
is hereby appropriated, in addition to and as part of, the cumulative
sinking fund provided by section 6 of the Victory Liberty Loan
Act, as amended, out of any money in the Treasury not otherwise
appropriated, for the purpose of such fund, an amount equal to
2 y2 per centum of the aggregate amount of the expenditures made
out of appropriations made or authorized under this Act as
determined by the Secretary of the Treasury.
REEMPLOYMENT AND RELIEF TAXES
SEC. 211. (a) Effective as of the day following the date of the
enactment of this Act, section 617 (a) of the Revenue Act of 1932
is amended by striking out " 1 cent " and inserting in lieu thereof
" iy2 cents".
(b) Effective as of the day following the date of the enactment
of this Act, section 617 (c) (2) of such Act is amended by adding
at the end thereof a new sentence to read as follows : " As used in
this paragraph the term ' benzol ' does not include benzol sold for
use otherwise than as a fuel for the propulsion of motor vehicles,
motor boats, or airplanes, and otherwise than in the manufacture or
production of such fuel."
SEC. 212. Titles IV and V of the Revenue Act of 1932 are amended
by striking out " 1934 " wherever appearing therein and by inserting
in lieu thereof " 1935 ". Section 761 of the Revenue Act of 1932 is
further amended by striking out " and on July 1, 1933 " and
inserting in lieu thereof " and on July 1, 1933, and on July 1,1934 ".
SEC. 213. (a) There is hereby imposed upon the receipt of dividends (required to be included in the gross income of the recipient
under the provisions of the Revenue Act of 1932) by any person
other than a domestic corporation, an excise tax equal to 5 per centum of the amount thereof, such tax to be deducted and withheld
from such dividends by the payor corporation. The tax imposed by
this section shall not apply to dividends declared before the date of
the enactment of this Act.
(b) Every corporation required to deduct and withhold any tax
under this section shall, on or before the last day of the month fol-
NATIONAL INDUSTRIAL RECOVERY ACT
17
lowing the payment of the dividend, make return thereof and pay
the tax to the collector of the district in which its principal place
of business is located, or, if it has no principal place of business
in the United States, to the collector at Baltimore, Maryland.
(c) Every such corporation is hereby made liable for such tax
and is hereby indemnified against the claims and demands of any
person for the amount of any payment made in accordance with the
provisions of this section.
(d) The provisions of sections 115, 771 to 774, inclusive, and 1111
of the Revenue Act of 1932 shall be applicable with respect to the
tax imposed by this section.
(e) The taxes imposed by this section shall not apply to the dividends of any corporation enumerated in section 103 of the Revenue
Act of 1932.
SEC. 214. Section 104 of the Revenue Act of 1932 is amended by
striking out the words " the surtax " wherever occurring in such
section and inserting in lieu thereof " any internal-revenue tax."
The heading of such section is amended by striking out " surtaxes "
and inserting in lieu thereof " internal-revenue taxes." Section
13 (c) of such Act is amended by striking out " surtax " and
inserting in lieu thereof " internal-revenue tax."
SEC. 215. (a) For each year ending June 30 there is hereby imposed upon every domestic corporation with respect to carrying
on or doing business for any part of such year an excise tax of $1
for each $1,000 of the adjusted declared value of its capital stock.
{b) For each year ending June 30 there is hereby imposed upon
every foreign corporation with respect to carrying on or doing business in the United States for any part of such year an excise tax
equivalent to §1 for each $1,000 of the adjusted declared value of
capital employed in the transaction of its business in the United
States.
(c) The taxes imposed by this section shall not apply—
(1) to any corporation enumerated in section 103 of the
Revenue Act of 1932 ;
(2) to any insurance company subject to the tax imposed by
section 201 or 204 of such Act ;
(3) to any domestic corporation in respect of the year ending
June 30, 1933, if it did not carry on or do business during a part
of the period from the date of the enactment of this Act to June
30, 1933, both dates inclusive; or
(4) to any foreign corporation in respect of the year ending
June 30, 1933, if it did not carry on or do business in the United
States during a part of the period from the date of the enactment
of this Act to June 30, 1933, both dates inclusive.
(d) Every corporation liable for tax under this section shall make
a return under oath within one month after the close of the year
with respect to which such tax is imposed to the collector for the
district in which is located its principal place of business or, if it
has no principal place of business in the United States, then to the
collector at Baltimore, Maryland. Such return shall contain such
2
18
TEXTS OF LAWS
information and be made in such manner as the Commissioner with
the approval of the Secretary may by regulations prescribe. The
tax shall, without assessment by the Commissioner or notice from
the collector, be due and payable to the collector before the expiration of the period for filing the return. If the tax is not paid when
due, there shall be added as part of the tax interest at the rate of
1 per centum a month from the time when the tax became due until
paid. All provisions of law (including penalties) applicable in
respect of the taxes imposed by section 600 of the Revenue Act of
1926 shall, in so far as not inconsistent with this section, be applicable in respect of the taxes imposed by this section. The Commissioner may extend the time for making the returns and paying the
taxes imposed by this section, under such rules and regulations as he
may prescribe with the approval of the Secretary, but nò such
extension shall be for more than sixty days.
(e) Returns required to be filed for the purpose of the tax imposed
by this section shall be open to inspection in the same manner, to
the same extent, and subject to the same provisions of law, including
penalties, as returns made under title II of the Revenue Act of 1926.
(/) For the first year ending June 30 in respect of which a tax is
imposed by this section upon any corporation, the adjusted declared
value shall be the value, as declared by the corporation in its first
return under this section (which declaration of value cannot be
amended), as of the close of its last income-tax taxable year ending
at or prior to the close of the year for which the tax is imposed by
this section (or as of the date of organization in the case of a corporation having no income-tax taxable year ending at or prior to the
close of the year for which the tax is imposed by this section). For
any subsequent year ending June 30, the adjusted declared value in
the case of a domestic corporation shall be the original declared
value plus (1) the cash and fair market value of property paid in
for stock or shares, (2) paid-in surplus and contributions to capital,
and (3) earnings and profits, and minus (A) the value of property
distributed in liquidation to shareholders, (B) distributions of earnings and profits, and (C) deficits, whether operating or nonoperating; each adjustment being made for the period from the date as of
which the original declared value was declared to the close of its
last income-tax taxable year ending at or prior to the close of the
year for which the tax is imposed by this section. For any subsequent year ending June 30, the adjusted declared value in the case
of a foreign corporation shall be the original declared value adjusted,
in accordance with regulations prescribed by the Commissioner with
the approval of the Secretary, to reflect increases or decreases (for
the period specified in the preceding sentence) in the capital
employed in the transaction of its business in the United States.
(g) The terms used in this section shall have the same meaning
as when used in the Revenue Act of 1932.
SEC. 216. (a) There is hereby imposed upon the net income of
every corporation, for each income-tax taxable year ending after
the close of the first year in respect of which it is taxable under
NATIONAL INDUSTRIAL RECOVERY ACT
19
section 215, an excess-profits tax equivalent to 5 per centum of such
portion of its net income for such income-tax taxable year as is in
excess of 12% per centum of the adjusted declared value of its
capital stock (or in the case of a foreign corporation the adjusted
declared value of capital employed in the transaction of its business
in the United States) as of the close of the preceding income-tax
taxable year (or as of the date of organization if it had no preceding
income-tax taxable year) determined as provided in section 215.
The terms used in this section shall have the same meaning as when
used in the Revenue Act of 1932.
(b) The tax imposed by this section shall be assessed, collected,
and paid in the same manner, and shall be subject to the same provisions of law (including penalties), as the taxes imposed by title I
of the Revenue Act of 1932.
SEC. 217. (a) The President shall proclaim the date of—
(1) the close of the fiscal year ending June 30 of any
year after the year 1933, during which the total receipts of the
United States (excluding public-debt receipts) exceed its total
expenditures (excluding public-debt expenditures other than
those chargeable against such receipts), or
(2) the repeal of the eighteenth amendment to the Constitution,
whichever is the earlier.
(¿>) Effective as of the 1st day of the calendar year following the
date so proclaimed section 617 (a) of the Revenue Act of 1932, as
amended, is amended by striking out " 1 % cents " and inserting in
lieu thereof " 1 cent ".
(c) The tax on dividends imposed by section 213 shall not apply
to any dividends declared on or after the 1st day of the calendar
year following the date so proclaimed.
(d) The capital-stock tax imposed by section 215 shall not apply
to any taxpayer in respect of any year beginning on or after the
1st day of July following the date so proclaimed.
(e) The excess-profits tax imposed by section 216 shall not apply
to any taxpaper in respect of any taxable year after its taxable year
during which the date so proclaimed occurs.
SEC. 218. (a) Effective as of January 1, 1933, sections 117, 23 (¿),
169, 187 and 205 of the Revenue Act of 1932 are repealed.
(b) Effective as of January 1, 1933, section 23 {r) (2) of the Revenue Act of 1932 is repealed.
(c) Effective as of January 1, 1933, section 23 (r) (3) of the Revenue Act of 1932 is amended by striking out all after the word
" Territory " and inserting a period.
(d) Effective as of January 1, 1933, section 182 (a) of the Revenue
Act of 1932 is amended by inserting at the end thereof a new sentence
as follows : " No part of any loss disallowed to a partnership as a
deduction by section 23 (r) shall be allowed as a deduction to a
member of such partnership in computing net income."
(e) Effective as of January 1, 1933, section 141 (c) of the Revenue
Act of 1932 is amended by striking out " except that for the taxable
20
TEXTS OF LAWS
years 1932 and 1933 there shall be added to the rate of tax prescribed by sections 13 (a), 201 (b), and 204 (a), a rate of three fourths
of 1 per centum " and inserting in lieu thereof the following:" except
that for the taxable years 1932 and 1933 there shall be added to the
rate of tax prescribed by sections 13 (a), 201 (b), and 204 (a), a rate of
three fourths of 1 per centum and except that for the taxable years
1934 and 1935 there shall be added to the rate of tax prescribed by
sections 13 (a), 201 (b), and 204 (a), a rate of 1 per centum ".
(/) No interest shall be assessed or collected for any period prior
to September 15,1933, upon such portion of any amount determined
as a deficiency in income taxes as is attributable solely to the amendments made to the Revenue Act of 1932 by this section.
(g) In cases where the effect of this section is to require for a
taxable year ending prior to June 30,1933, the making of an incometax return not otherwise required by law, the time for making the
return and paying the tax shall be the same as if the return was for
a fiscal year ending June 30, 1933.
(h) Section 55 of the Revenue Act of 1932 is amended by inserting
before the period at the end thereof a semicolon and the following :
" and all returns made under this Act after the date of enactment
of the National Industrial Recovery Act shall constitute public
records and shall be open to public examination and inspection to
such extent as shall be authorized in rules and regulations promulgated by the President ".
SEC. 219. Section 500 (a) (1) of the Revenue Act of 1926, as
amended, is amended by striking out the period at the end of the
second sentence thereof and inserting in lieu thereof a comma and
the following: " except that no tax shall be imposed in the case of
persons admitted free to any spoken play (not a mechanical reproduction), whether or not set to music or with musical parts or accompaniments, which is a consecutive narrative interpreted by a single
set of characters, all necessary to the development of the plot, in
two or more acts, the performance consuming more than 1 hour and
45 minutes of time."
APPROPRIATION
SEC 220. For the purposes of this Act, there is hereby authorized
to be appropriated, out of any money in the Treasury not otherwise
appropriated, the sum of $3,300,000,000. The President is authorized to allocate so much of said sum, not in excess of $100,000,000, as
he may determine to be necessary for expenditures in carrying out
the Agricultural Adjustment Act and the purposes, powers, and
functions heretofore and hereafter conferred upon the Farm Credit
Administration.
SEC. 221. Section 7 of the Agricultural Adjustment Act, approved
May 12,1933, is amended by striking out all of its present terms and
provisions and substituting therefor the following:
" SEC. 7. The Secretary shall sell the cotton held by him at his
discretion, but subject to the foregoing provisions: Provided, That
he shall dispose of all cotton held by him by March 1, 1936: Provided
NATIONAL INDUSTRIAL RECOVERY ACT
21
further, That, notwithstanding the provisions of section 6, the Secretary shall have authority to enter into option contracts with producers of cotton to sell to the producers such cotton held by him, in
such amounts and at such prices and upon such terms and conditions
as the Secretary may deem advisable, in combination with rental or
benefit payments provided for in part 2 of this title.
" Notwithstanding any provisions of existing law, the Secretary
of Agriculture may in the administration of the Agricultural Adjustment Act make public such information as he deems necessary in
order to effectuate the purposes of such Act."
TITLE III—AMENDMENTS TO EMERGENCY RELIEF
AND CONSTRUCTION ACT AND MISCELLANEOUS
PROVISIONS
SECTION 301. After the expiration of ten days after the date upon
which the Administrator has qualified and taken office, (1) no
application shall be approved by the Reconstruction Finance Corporation under the provisions of subsection (a) of section 201 of
the Emergency Relief and Construction Act of 1932, as amended,
and (2) the Administrator shall have access to all applications, files,
and records of the Reconstruction Finance Corporation relating to
loans and contracts and the administration of funds under such
subsection : Provided, That the Reconstruction Finance Corporation
may issue funds to a borrower under such subsection (a) prior to
January 23, 1939, under the terms of any agreement or any commitment to hid upon or purchase bonds entered into with such
borrower pursuant to an application approved prior to the date
of termination, under this section, of the power of the Reconstruction Finance Corporation to approve applications.
DECREASE OF BORROWING POWER OF RECONSTRUCTION FINANCE
CORPORATION
SEC. 302. The amount of notes, debentures, bonds, or other such
obligations which the Reconstruction Finance Corporation is authorized and empowered under section 9 of the Reconstruction Finance
Corporation Act, as amended, to have outstanding at any one time is
decreased by $400,000,000.
SEPARABILITY CLAUSE
SEC. 303. If any provision of this Act, or the application thereof
to any person or circumstances, is held invalid, the remainder of
the Act, and the application of such provision to other persons or
circumstances, shall not be affected thereby.
SHORT TITLE
SEC 304. This Act may be cited as the " National Industrial
Recovery Act."
Approved, June 16, 1933, 11.55 a.m.
In event of restriction of production, a
tax is imposed upon
processors of the restricted
commodity
(and may also be imposed on competing
commodities) to provide benefits to producers restricting production. Compensating tax imposed on similar imported commodities. Tax to be
refunded on exports.
(SS. 9, 15 and 16.)
Secretary of Agriculture may provide for
the restriction by voluntary agreement of
production of wheat,
cotton, field corn, hogs,
rice, tobacco, milk and
milk products, and
may make benefit payments on this account ;
may issue and revoke
licences designed to
eliminate unfair practices in marketing.
(S. 8.)
TITLE
Bonds to be issued to
value of $2.000 million
to re-finance
farm
mortgages. (Part 1.)
I:
Agricultural
TITLE
Adjustment
Emergency
Mortgage
Act
AGRICULTURAL
Cotton producers, in return
for restricting production, given options to take up Government stocks of cotton. (Part 1.)
Authorises open market purchases of securities at direction
of President to extent of
$3,000 million. (S. 43.)
ADJUSTMENT ACT
and
EMERGENCY FARM
MORTGAGE ACT
TITLE
III:
Special
Monetary
and Financial
Powers
Authorises united States
notes to be issued at direction
of President to extent of
$3,000 million. (S. 43.)
$100 million made
available for loans to
joint-stock land banks
to provide for orderly
liquidation. (Part 2.)
II:
Farm
Act
$200 million made available
as loans to farmers, to refinance indebtedness, provide
working capital and repurchase foreclosed farm property. (Part 3.)
Authorises coinage of silver
at fixed ratio to gold, acceptance of silver in part payment
of debts owed by foreign Governments, and Issue of silver
certificates to corresponding
amount. (S. 45.)
Authorises reduction in
weight of gold dollar up to
50 per cent. (S. 43.)
Tide I shall cease to be in effect whenever the President finds and proclaims
that the national economic emergency in relation to agriculture has been ended.
AGRICULTURAL ADJUSTMENT ACT AND
EMERGENCY FARM MORTGAGE ACT
[PUBLIC—No. 1 0 — 7 3 D CONGRESS]
[H. R. 3835]
AN ACT
To relieve the existing national economic emergency by increasing agricultural
purchasing power, to raise revenue for extraordinary expenses incurred by
reason of such emergency, to provide- emergency relief with respect to
agricultural indebtedness, to provide for the orderly liquidation of jointstock land banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I—AGRICULTURAL ADJUSTMENT
DECLARATION OF EMERGENCY
That the present acute economic emergency being in part the consequence of a severe and increasing disparity between the prices of
agricultural and other commodities, which disparity has largely
destroyed the purchasing power of farmers for industrial products,
has broken down the orderly exchange of commodities, and has seriously impaired the agricultural assets supporting the national credit
structure, it is hereby declared that these conditions in the basic
industry of agriculture have affected transactions in agricultural
commodities with a national public interest, have burdened and
obstructed the normal currents of commerce in such commodities,
and render imperative the immediate enactment of title I of this Act.
DECLARATION OF POLICY
S E C 2. It is hereby declared to be the policy of Congress—
(1) To establish and maintain such balance between the production and consumption of agricultural commodities, and such marketing conditions therefor, as will reestablish prices to farmers at a
level that will give agricultural commodities a purchasing power
with respect to articles that farmers buy, equivalent to the purchasing power of agricultural commodities in the base period. The base
period in the case of all agricultural commodities except tobacco
shall be the prewar period, August 1909-July 1914. In the case of
tobacco, the base period shall be the postwar period, August 1919July 1929.
(2) To approach such equality of purchasing power by gradual
correction of the present inequalities therein at as rapid a rate as is
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TEXTS OF LAWS
deemed feasible in view of the current consumptive demand in
domestic and foreign markets.
(3) To protect the consumers' interest by readjusting farm production at such level as will not increase the percentage of the
consumers' retail expenditures for agricultural commodities, or
products derived therefrom, which is returned to the farmer, above
the percentage which was returned to the farmer in the prewar
period, August 1909-July 1914.
PART 1—COTTON OPTION CONTRACTS
SEC. 3. The Federal Farm Board and all departments and other
agencies of the Government, not including the Federal intermediate
credit banks, are hereby directed—
(a) To sell to the Secretary of Agriculture at such price as may
be agreed upon, not in excess of the market price, all cotton now
owned by them.
(¿>) To take such action and to make such settlements as are necessary in order to acquire full legal title to all cotton on which money
has been loaned or advanced by any department or agency of the
United States, including futures contracts for cotton or which is
held as collateral for loans or advances and to make final settlement
of such loans and advances as follows :
(1) In making such settlements with regard to cotton, including
operations to which such cotton is related, such cotton shall be taken
over by all such departments or agencies other than the Secretary
of Agriculture at a price or sum equal to the amounts directly or
indirectly loaned or advanced thereon and outstanding, including
loans by the Government department or agency and any loans senior
thereto, plus any sums required to adjust advances to growers to
90 per centum of the value of their cotton at the date of its delivery
in the first instance as collateral to the department or agency
involved, such sums to be computed by subtracting the total amount
already advanced to growers on account of pools of which such
cotton was a part, from 90 per centum of the value of the cotton to
be taken over as of the time of such delivery as collateral, plus
unpaid accrued carrying charges and operating costs on such cotton,
less, however, any existing assets of the borrower derived from net
income, earnings, or profits arising from such cotton, and from
operations to which such cotton is related; all as determined by the
department or agency making the settlement.
(2) The Secretary of Agriculture shall make settlements with
respect to cotton held as collateral for loans or advances made by
him on such terms as in his judgment may be deemed advisable,
and to cany out the provisions of this section, is authorized to
indemnify or furnish bonds to warehousemen for lost warehouse
receipts and to pay the premiums on such bonds.
When full legal title to the cotton referred to in (b) has been
acquired, it shall be sold to the Secretary of Agriculture for the
purposes of this section, in the same manner as provided in (a).
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
25
(c) The Secretary of Agriculture is hereby authorized to purchase
the cotton specified in paragraphs (a) and (b).
SEC. 4. The Secretary of Agriculture shall have authority to
borrow money upon all cotton in his possession or control and
deposit as collateral for such loans the warehouse receipts for such
cotton.
SEC. 5. The Reconstruction Finance Corporation is hereby authorized and directed to advance money and to make loans to the Secretary of Agriculture to acquire such cotton and to pay the classing,
carrying, and merchandising costs thereon, in such amounts and
upon such terms as may be agreed upon by the Secretary and the
Reconstruction Finance Corporation, with such warehouse receipts
as collateral security: Provided, however, That in any instance
where it is impossible or impracticable for the Secretary to deliver
such warehouse receipts as collateral security for the advances and
loans herein provided to be made, the Reconstruction Finance
Corporation may accept in lieu of all or any part thereof such other
security as it may consider acceptable for the purposes aforesaid,
including an assignment or assignments of the equity and interest
of the Secretary in warehouse receipts pledged to secure other
indebtedness. The amount of notes, bonds, debentures, and other
such obligations which the Reconstruction Finance Corporation is
authorized and empowered to issue and to have outstanding at any
one time under existing law is hereby increased by an amount
sufficient to carry out the provisions of this section.
SEC. 6. (a) The Secretary of Agriculture is hereby authorised to
enter into option contracts with the producers of cotton to sell to
any such producer an amount of cotton to be agreed upon not in
excess of the amount of reduction in production of cotton by such
producer below the amount produced by him in the preceding crop
year, in all cases where such producer agrees in writing to reduce
the amount of cotton produced by him in 1933, below his production
in the previous year, by not less than 30 per centum, without increase
in commercial fertilization per acre.
(¿>) To any such producer so agreeing to reduce production the
Secretary of Agriculture shall deliver a nontransferable-option
contract agreeing to sell to said producer an amount, equivalent to
the amount of his agreed reduction, of the cotton in the possession
and control of the Secretary.
(c) The producer is to have the option to buy said cotton at the
average price paid by the Secretary for the cotton procured under
section 3, and is to have the right at any time up to January 1,1934,
to exercise his option, upon proof that he has complied with his
contract and with all the rules and regulations of the Secretary of
Agriculture with respect thereto, by taking said cotton upon payment by him of his option price and all actual carrying charges on
such cotton ; or the Secretary may sell such cotton for the account of
such producer, paying him the excess of the market price at the date
of sale over the average price above referred to after deducting all
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actual and necessary carrying charges: Provided, That in no event
shall the producer be held responsible or liable for financial loss
incurred in the holding of such cotton or on account of the carrying
charges therein: Provided further, That such agreement to curtail
cotton production shall contain a further provision that such cotton
producer shall not use the land taken out of cotton production for
the production for sale, directly or indirectly, of any other nationally
produced agricultural commodity or product.
(d) If any cotton held by the Secretary of Agriculture is not
disposed of under subsection (c), the Secretary is authorized to enter
into similar option contracts with respect to such cotton, conditioned
upon a like reduction of production in 1934, and permitting the
producer in each case to exercise his option at any time up to
January 1, 1935.
SEC. 7. The Secretary shall sell the cotton held by him at his
discretion, but subject to the foregoing provisions: Provided, That
he shall dispose of all cotton held by him by March 1, 1936:
Provided further, That the Secretary shall have authority to enter
into additional option contracts for so much of such cotton as is not
necessary to comply with the provisions of section 6, in combination
with benefit payments as provided for in part 2 of this title.
PART 2—COMMODITY BENEFITS
GENERAL POWERS
SEC. 8. In order to effectuate the declared policy, the Secretary
of Agriculture shall have power—
(1) To provide for reduction in the acreage or reduction in the
production for market, or both, of any basic agricultural commodity,
through agreements with producers or by other voluntary methods,
and to provide for rental or benefit payments in connection therewith
or upon that part of the production of any basic agricultural commodity required for domestic consumption, in such amounts as the
Secretary deems fair and reasonable, to be paid out of any moneys
available for such payments. Under regulations of the Secretary of
Agriculture requiring adequate facilities for the storage of any
non-perishable agricultural commodity on the farm, inspection and
measurement of any such commodity so stored, and the locking and
sealing thereof, and such other regulations as may be prescribed
by the Secretary of Agriculture for the protection of such commodity
and for the marketing thereof, a reasonable percentage of any benefit
payment may be advanced on any such commodity so stored. In any
such case, such deduction may be made from the amount of the
benefit payment as the Secretary of Agriculture determines will
reasonably compensate for the cost of inspection and sealing, but
no deduction may be made for interest.
(2) To enter into marketing agreements with processors, associations of producers, and others engaged in the handling, in the
current of interstate or foreign commerce of any agricultural com-
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
27
modity or product thereof, after due notice and opportunity for
hearing to interested parties. The making of any such agreement
shall not be held to be in violation of any of the antitrust laws of
the United States, and any such agreement shall be deemed to be
lawful: Provided, That no such agreement shall remain in force
after the termination of this Act. For the purpose of carrying out
any such agreement the parties thereto shall be eligible for loans
from the Reconstruction Finance Corporation under section 5 of the
Reconstruction Finance Corporation Act. Such loans shall not be
in excess of such amounts as may be authorized by the agreements.
(3) To issue licenses permitting processors, associations of producers, and others to engage in the handling, in the current of
interstate or foreign commerce, of any agricultural commodity or
product thereof, or any competing commodity or product thereof.
Such licenses shall be subject to such terms and conditions, not in
conflict with existing Acts of Congress or regulations pursuant thereto, as may be necessary to eliminate unfair practices or charges that
prevent or tend to prevent the effectuation of the declared policy and
the restoration of normal economic conditions in the marketing of
such commodities or products and the financing thereof. The Secretary of Agriculture may suspend or revoke any such license, after
due notice and opportunity for hearing, for violations of the terms or
conditions thereof. Any order of the Secretary suspending or
revoking any such license shall be final if in accordance with law.
Any such person engaged in such handling without a license as
required by the Secretary under this section shall be subject to a
fine of not more than $1,000 for each day during which the violation
continues.
(4) To require any licensee under this section to furnish such
reports as to quantities of agricultural commodities or products
thereof bought and sold and the prices thereof, and as to trade
practices and charges, and to keep such systems of accounts, as may
be necessary for the purpose of part 2 of this title.
(5) No person engaged in the storage in a public warehouse of
any basic agricultural commodity in the current of interstate or
foreign commerce, shall deliver any such commodity upon which
a warehouse receipt has been issued and is outstanding, without
prior surrender and cancellation of such warehouse receipt. Any
person violating any of the provisions of this subsection shall, upon
conviction, be punished by a fine of not more than $5,000, or by
imprisonment for not more than two years, or both. The Secretary
of Agriculture may revoke any license issued under subsection (3) of
this section, if he finds, after due notice and opportunity for hearing,
that the licensee has violated the provisions of this subsection.
PROCESSING TAX
SEC. 9. (a) To obtain revenue for extraordinary expenses incurred
by reason of the national economic emergency, there shall be levied
processing taxes as hereinafter provided. When the Secretary of
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TEXTS OF LAWS
Agriculture determines that rental or benefit payments are to be
made with respect to any basic agricultural commodity, he shall
proclaim such determination, and a processing tax shall be in effect
with respect to such commodity from the beginning of the marketing
year therefor next following the date of such proclamation. The
processing tax shall be levied, assessed, and collected upon the first
domestic processing of the commodity, whether of domestic production or imported, and shall be paid by the processor. The rate
of tax shall conform to the requirements of subsection (¿>). Such
rate shall be determined by the Secretary of Agriculture as of the
date the tax first takes effect, and the rate so determined shall, at
such intervals as the Secretary finds necessary to effectuate the
declared policy, be adjusted by him to conform to such requirements.
The processing tax shall terminate at the end of the marketing year
current at the time the Secretary proclaims that rental or benefit
payments are to be discontinued with respect to such commodity.
The marketing year for each commodity shall be ascertained and
prescribed by regulations of the Secretary of Agriculture : Provided,
That upon any article upon which a manufacturers' sales tax is
levied under the authority of the Revenue Act of 1932 and which
manufacturers' sales tax is computed on the basis of weight, such
manufacturers' sales tax shall be computed on the basis of the weight
of said finished article less the weight of the processed cotton
contained therein on which a processing tax has been paid.
(b) The processing tax shall be at such rate as equals the difference
between the current average farm price for the commodity and the
fair exchange value of the commodity ; except that if the Secretary
has reason to believe that the tax at such rate will cause such
reduction in the quantity of the commodity or products thereof
domestically consumed as to result in the accumulation of surplus
stocks of the commodity or products thereof or in the depression of
the farm price of the commodity, then he shall cause an appropriate
investigation to be made and afford due notice and opportunity for
hearing to interested parties. If thereupon the Secretary finds that
such result will occur, then the processing tax shall be at such rate as
will prevent such accumulation of surplus stocks and depression of
the farm price of the commodity. In computing the current
average farm price in the case of wheat, premiums paid producers
for. protein content shall not be taken into account.
(c) For the purposes of part 2 of this title, the fair exchange value
of a commodity shall be the price therefor that will give the commodity the same purchasing power, with respect to articles farmers
buy, as such commodity had during the base period specified in
section 2 ; and the current average farm price and the fair exchange
value shall be ascertained by the Secretary of Agriculture from
available statistics of the Department of Agriculture.
(d) As used in part 2 of this title—
(1) In case of wheat, rice, and corn, the term " processing "
means the milling or other processing (except cleaning and drying)
of wheat, rice, or corn for market, including custom milling for toll
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
29
as well as commercial milling, but shall not include the grinding or
cracking thereof not in the form of flour for feed purposes only.
(2) In case of cotton, the term " processing " means the spinning,
manufacturing, or other processing (except ginning) of cotton;
and the term " cotton " shall not include cotton linters.
(3) In case of tobacco, the term " processing " means the manufacturing or other processing (except drying or converting into
insecticides and fertilizers) of tobacco.
(4) In case of hogs, the term " processing " means the slaughter
of hogs for market.
(5) In the case of any other commodity, the term " processing "
means any manufacturing or other processing involving a change
in the form of the commodity or its preparation for market, as
defined by regulations of the Secretary of Agriculture; and in
prescribing such regulations the Secretary shall give due weight
to the customs of the industry.
(e) When any processing tax, or increase or decrease therein,
takes effect in respect of a commodity the Secretary of Agriculture,
in order to prevent pyramiding of the processing tax and profiteering in the sale of the products derived from the commodity, shall
make public such information as he deems necessary regarding
(1) the relationship between the processing tax and the price paid
to producers of the commodity, (2) the effect of the processing tax
upon prices to consumers of products of the commodity, (3) the
relationship, in previous periods, between prices paid to the producers of the commodity and prices to consumers of the products
thereof, and (4) the situation in foreign countries relating to prices
paid to producers of the commodity and prices to consumers of the
products thereof.
MISCELLANEOUS
SEC. 10. (a) The Secretary of Agriculture may appoint such
officers and employees, subject to the provisions of the Classification
Act of 1923 and Acts amendatory thereof, and such experts as are
necessary to execute the functions vested in him by this title ; and
the Secretary may make such appointments without regard to the
civil service laws or regulations : Provided, That no salary in excess
of $10,000 per annum shall be paid to any officer, employee, or
expert of the Agricultural Adjustment Administration, which the
Secretary shall establish in the Department of Agriculture for the
administration of the functions vested in him by this title. Title
II of the Act entitled "An Act to maintain the credit of the United
States Government ", approved March 20, 1933, to the extent that
it provides for the impoundment of appropriations on account of
reductions in compensation, shall not operate to require such
impoundment under appropriations contained in this Act.
(b) The Secretary of Agriculture is authorized to establish, for the
more effective administration of the functions vested in him by this
title, State and local committees, or associations of producers, and
to permit cooperative associations of producers, when in his judg-
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ment they are qualified to do so, to act as agents of their members and patrons in connection with the distribution of rental or
benefit payments.
(c) The Secretary of Agriculture is authorized, with the approval
of the President, to make such regulations with the force and effect
of law as may be necessary to carry out the powers vested in him
by this title, including regulations establishing conversion factors
for any commodity and article processed therefrom to determine
the. amount of tax imposed or refunds to be made with respect
thereto. Any violation of any regulation shall be subject to such
penalty, not in excess of $100, as may be provided therein.
(d) The Secretary of the Treasury is authorized to make such
regulations as may be necessary to carry out the powers vested in
him by this title.
(e) The action of any officer, employee, or agent in determining
the amount of and in making any rental or benefit payment shall
not be subject to review by any officer of the Government other
than the Secretary of Agriculture or Secretary of the Treasury.
(/) The provisions of this title shall be applicable to the United
States and its possessions, except the Philippine Islands, the Virgin
Islands, American Samoa, the Canal Zone, and the island of Guam.
(g) No person shall, while acting in any official capacity in the
administration of this title, speculate, directly or indirectly, in any
agricultural commodity or product thereof, to which this title applies, or in contracts relating thereto, or in the stock or membership
interests of any association or corporation engaged in handling,
processing, or disposing of any such commodity or product. Any
person violating this subsection shall upon conviction thereof be
fined not more than $10,000 or imprisoned not more than two years,
or both.
(h) For the efficient administration of the provisions of part 2
of this title, the provisions, including penalties, of sections 8, 9,
and 10 of the Federal Trade Commission Act, approved September
26,1914, are made applicable to the jurisdiction, powers, and duties
of the Secretary in administering the provisions of this title and to
any person subject to the provisions of this title, whether or not a
corporation. Hearings authorized or required under this title shall
be conducted by the Secretary of Agriculture or such officer or
employee of the Department as he may designate for the purpose.
The Secretary may report any violation of any agreement entered
into under part 2 of this title to the Attorney General of the United
States, who shall cause appropriate proceedings to enforce such
agreement to be commenced and prosecuted in the proper courts of
the United States without delay.
COMMODITIES
SEC. 11. As used in this title, the term " basic agricultural commodity " means wheat, cotton, field corn, hogs, rice, tobacco, and
milk and its products, and any regional or market classification,
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
31
type, or grade thereof; but the Secretary of Agriculture shall
exclude from the operation of the provisions of this title, during
any period, any such commodity or classification, type, or grade
thereof if he finds, upon investigation at any time and after due
notice and opportunity for hearing to interested parties, that
the conditions of production, marketing, and consumption are
such that during such period this title can not be effectively
administered to the end of effectuating the declared policy with
respect to such commodity or classification, type, or grade thereof.
APPROPRIATION
SEC. 12. (a) There is hereby appropriated, out of any money in
the Treasury not otherwise appropriated, the sum of §100,000,000
to be available to the Secretary of Agriculture for administrative
expenses under this title and for rental and benefit payments made
with respect to reduction in acreage or reduction in production for
market under part 2 of this title. Such sum shall remain available
until expended.
(b) In addition to the foregoing, the proceeds derived from all
taxes imposed under this title are hereby appropriated to be available to the Secretary of Agriculture for expansion of markets and
removal of surplus agricultural products and the following purposes
under part 2 of this title : Administrative expenses, rental and benefit payments, and refunds on taxes. The Secretary of Agriculture
and the Secretary of the Treasury shall jointly estimate from time
to time the amounts, in addition to any money available under subsection (a), currently required for such purposes; and the Secretary
of the Treasury shall, out of any money in the Treasury not otherwise appropriated, advance to the Secretary of Agriculture the
amounts so estimated. The amount of any such advance shall be
deducted from such tax proceeds as shall subsequently become available under this subsection.
(c) The administrative expenses provided for under this section
shall include, among others, expenditures for personal services and
rent in the District of Columbia and elsewhere, for law books and
books of reference, for contract stenographic reporting services, and
for printing and paper in addition to allotments under the existing
law. The Secretary of Agriculture shall transfer to the Treasury
Department, and is authorized to transfer to other agencies, out of
funds available for administrative expenses under this title, such
sums as are required to pay administrative expenses incurred and
refunds made by such department or agencies in the administration
of this title.
TERMINATION
OF ACT
SEC. 13. This title shall cease to be in effect whenever the President finds and proclaims that the national economic emergency in
relation to agriculture has been ended ; and pending such time the
President shall by proclamation terminate with respect to any basic
agricultural commodity such provisions of this title as he finds are
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TEXTS OF LAWS
not requisite to carrying out the declared policy with respect to such
commodity. The Secretary of Agriculture shall make such investigations and reports thereon to the President as may be necessary
to aid him in executing this section.
SEPARABILITY OF PROVISIONS
SEC. 14. If any provision of this title is declared unconstitutional,
or the applicability thereof to any person, circumstance, or commodity is held invalid the validity of the remainder of this title and the
applicability thereof to other persons, circumstances, or commodities
shall not be affected thereby.
SUPPLEMENTARY REVENUE PROVISIONS
EXEMPTIONS AND COMPENSATING TAXES
SEC. 15. (a) If the Secretary of Agriculture finds, upon investigation at any time and after due notice and opportunity for hearing to
interested parties, that any class of products of any commodity is
of such low value compared with the quantity of the commodity
used for their manufacture that the imposition of the processing
tax would prevent in whole or in large part the use of the commodity in the manufacture of such products and thereby substantially
reduce consumption and increase the surplus of the commodity, then
the Secretary of Agriculture shall so certify to the Secretary of the
Treasury, and the Secretary of the Treasury shall abate or refund
any processing tax assessed or paid after the date of such certification with respect to such amount of the commodity as is used in
the manufacture of such products.
(b) No tax shall be required to be paid on the processing of any
commodity by or for the producer thereof for consumption by his
own family, employees, or household; and the Secretary of Agriculture is authorized, by regulations, to exempt from the payment of
the processing tax the processing of commodities by or for the producer thereof for sale by him where, in the judgment of the Secretary, the imposition of a processing tax with respect thereto is
unnecessary to effectuate the declared policy.
(c) Any person delivering any product to any organization for
charitable distribution or use shall, if such product or the commodity from which processed, is under this title subject to tax,
be entitled to a refund of the amount of any tax paid under this
title with respect to such product so delivered.
(d) The Secretary of Agriculture shall ascertain from time to
time whether the payment of the processing tax upon any basic
agricultural commodity is causing or will cause to the processors
thereof disadvantages in competition from competing commodities
by reason of excessive shifts in consumption between such commodities or products thereof. If the Secretary of Agriculture finds, after
investigation and due notice and opportunity for hearing to interested parties, that such disadvantages in competition exist, or will
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
33
exist, he shall proclaim such finding. The Secretary shall specify
in this proclamation the competing commodity and the compensating rate of tax on the processing thereof necessary to prevent such
disadvantages in competition. Thereafter there shall be levied,
assessed, and collected upon the first domestic processing of such
competing commodity a tax, to be paid by the processor, at the rate
specified, until such rate is altered pursuant to a further finding
under this section, or the tax or rate thereof on the basic agricultural
commodity is altered or terminated. In no case shall the tax
imposed upon such competing commodity exceed that imposed per
equivalent unit, as determined by the Secretary, upon the basic
agricultural commodity.
(e) During any period for which a processing tax is in effect with
respect to any commodity there shall be levied, assessed, collected,
and paid upon any article processed or manufactured wholly or in
chief value from such commodity and imported into the United
States or any possession thereof to which this title applies, from
any foreign country or from any possession of the United States
to which this title does not apply, a compensating tax equal to the
amount of the processing tax in effect with respect to domestic
processing at the time of importation: Provided, That all taxes
collected under this subsection upon articles coming from the possessions of the United States to which this title does not apply shall
not be covered into the general fund of the Treasury of the United
States but shall be held as a separate fund and paid into the Treasury
of the said possessions, respectively, to be used and expended by
the governments thereof for the benefit of agriculture. Such tax
shall be paid prior to the release of the article from customs custody
or control.
FLOOR STOCKS
SEC. 16. (a) Upon the sale or other disposition of any article
processed wholly or in chief value from any commodity with respect
to which a processing tax is to be levied, that on the date the tax
first takes effect or wholly terminates with respect to the commodity,
is held for sale or other disposition (including articles in transit)
by any person, there shall be made a tax adjustment as follows:
(1) Whenever the processing tax first takes effect, there shall be
levied, assessed, and collected a tax to be paid by such person equivalent to the amount of the processing tax which would be payable
with respect to the commodity from which processed if the processing had occurred on such date.
(2) Whenever the processing tax is wholly terminated, there shall
be refunded to such person a sum (or if it has not been paid, the
tax shall be abated) in an amount equivalent to the processing tax
with respect to the commodity from which processed.
(b) The tax imposed by subsection (a) shall not apply to the
retail stocks of persons engaged in retail trade, held at the date the
processing tax first takes effect; but such retail stocks shall not
be deemed to include stocks held in a warehouse on such date, or
3
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such portion of other stocks held on such date as are not sold or
otherwise disposed of within thirty days thereafter. The tax refund
or abatement provided in subsection (a) shall not apply to the retail
stocks of persons engaged in retail trade, held on the date the
processing tax is wholly terminated.
EXPORTATIONS
SEC. 17. (a) Upon the exportation to any foreign country (including the Philippine Islands, the Virgin Islands, American Samoa,
and the island of Guam) of any product with respect to which a tax
has been paid under this title, or of any product processed wholly
or in chief value from a commodity with respect to which a tax
has been paid under this title, the exporter thereof shall be entitled
at the time of exportation to a refund of the amount of such tax.
(b) Upon the giving of bond satisfactory to the Secretary of the
Treasury for the faithful observance of the provisions of this title
requiring the payment of taxes, any person shall be entitled, without
payment of the tax, to process for such exportation any commodity
with respect to which a tax is imposed by this title, or to hold for
such exportation any article processed wholly or in chief value
therefrom.
EXISTING CONTRACTS
SEC. 18. (a) If (1) any processor, jobber, or wholesaler has, prior
to the date a tax with respect to any commodity is first imposed
under this title, made a bona fide contract of sale for delivery on or
after such date, of any article processed wholly or in chief value from
such commodity, and if (2) such contract does not permit the
addition to the amount to be paid thereunder of the whole of such
tax, then (unless the contract prohibits such addition) the vendee
shall pay so much of the tax as is not permitted to be added to the
contract price.
(b) Taxes payable by the vendee shall be paid to the vendor at
the time the sale is consummated and shall be collected and paid to
the United States by the vendor in the same manner as other taxes
under this title. In case of failure or refusal by the vendee to pay
such taxes to the vendor, the vendor shall report the facts to the
Commissioner of Internal Revenue who shall cause collections of
such taxes to be made from the vendee.
COLLECTION OF TAXES
SEC. 19. (a) The taxes provided in this title shall be collected by
the Bureau of Internal Revenue under the direction of the Secretary
of the Treasury. Such taxes shall be paid into the Treasury of the
United States.
(b) All provisions of law, including penalties, applicable with
respect to the taxes imposed by section 600 of the Revenue Act of
1926, and the provisions of section 626 of the Revenue Act of 1932,
shall, in so far as applicable and not inconsistent with the provisions
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
35
of this title, be applicable in respect of taxes imposed by this title :
Provided, That the Secretary of the Treasury is authorized to permit
postponement, for a period not exceeding ninety days, of the
payment of taxes covered by any return under this title.
(c) In order that the payment of taxes under this title may not
impose any immediate undue financial burden upon processors or
distributors, any processor or distributor subject to such taxes shall
be eligible for loans from the Reconstruction Finance Corporation
under section 5 of the Reconstruction Finance Corporation Act.
TITLE II—AGRICULTURAL CREDITS
PART 1—AMENDMENTS TO FEDERAL FARM LOAN ACT
ISSUANCE OF BONDS BY LAND BANKS
SECTION 21. Section 32 of the Federal Farm Loan Act, as amended
(U.S.C., title 12, sec. 991), is amended by adding at the end thereof
the following new paragraph:
"Until such time as the Farm Loan Commissioner determines that
Federal farm-loan bonds (other than those issued under this paragraph) are readily salable in the open market at a yield not in excess
of 4 per centum per annum, but in no case more than two years after
this paragraph takes effect, Federal land banks may issue farm-loan
bonds as authorized under this Act, for the purpose of making new
loans, or for purchasing mortgages or exchanging bonds for mortgages as provided in paragraph 'Second' of section 13 of this Act.
The aggregate amount of the bonds issued under this paragraph
shall not exceed $2,000,000,000, and such bonds shall be issued in
such denominations as the Farm Loan Commissioner shall prescribe,
shall bear interest at a rate not in excess of 4 per centum per annum,
and shall be fully and unconditionally guaranteed as to interest by
the United States, and such guaranty shall be expressed on the face
thereof. In the event that it shall appear to the Farm Loan Commissioner that the issuing bank or banks will be unable to pay upon
demand, when due, the interest on any such bonds, the Secretary of
the Treasury shall, upon the request of the Commissioner, pay the
amount thereof, which is hereby authorized to be appropriated out
of any money in the Treasury not otherwise appropriated. Upon
the payment of such interest by the Secretary of the Treasury the
amount so paid shall become an obligation to the United States of
the issuing bank or banks and shall bear interest at the same rate
as that borne by the bonds upon which the interest has been so paid.
After the expiration of one year from the date this paragraph takes
effect, if in the opinion of the Farm Loan Commissioner any part of
the proceeds of the bonds authorized to be issued under this paragraph is not required for the purpose of making new loans or for
purchasing mortgages or exchanging bonds for mortgages as herein
provided, such bonds may be issued within the maximum limit herein
specified for the purpose of refinancing any outstanding issues of
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Federal farm-loan bonds; but no such bonds shall be issued after
two years from the date this paragraph takes effect for the purpose
of such refinancing. Any borrower who obtains a loan from a
Federal land bank after the date this paragraph takes effect may, at
any time after the expiration of five years from the date such loan
was made, tender to such bank on any regular installment date,
bonds issued under this paragraph in an amount not to exceed the
unpaid principal of his loan, and the bonds so tendered shall be
accepted by the bank at par in payment of any part of such unpaid
principal."
PURCHASE, REDUCTION, AND REFINANCING OF FARM MORTGAGES
SEC. 22. Paragraph " Second " of section 13 of the Federal Farm
Loan Act, as amended, is amended by adding at the end thereof the
following new sentence:
" In order to reduce and/or refinance farm mortgages, to invest
such funds as may be in its possession in the purchase of first
mortgages on farm lands situated within the Federal land-bank
district within which it is organized or for which it is acting, or to
exchange farm-loan bonds for any duly recorded first mortgages on
farm lands executed prior to the date this paragraph, as amended,
takes effect, at a price which shall not exceed in each individual
case the amount of the unpaid principal of the mortgage on the date
of such purchase or exchange, or 50 per centum of the normal value
of the land mortgaged and 20 per centum of the value of the permanent insured improvements thereon as determined upon an appraisal
made pursuant to this Act, whichever is the smaller: Provided, That
any mortgagor whose mortgage is acquired by a Federal land bank
under this paragraph shall be entitled to have his farm-mortgage
indebtedness refinanced in accordance with the provisions of sections
7 and 8 of this Act on the basis of the amount paid by the bank for
his mortgage."
EXTENSION OF LOANS
SEC. 23. Paragraph "Tenth" of section 13 of the Federal Farm
Loan Act, as amended (U.S.G., title 12, sec. 781), is amended by
adding at the end thereof the following: " The terms of any such
extension shall be such as will not defer the collection of any
obligation due by any borrower which, after investigation by the
bank of the situation of such borrower, is shown to be within his
capacity to meet. In the case of any such extension made prior to
the expiration of five years from the date this paragraph as amended
takes effect, or in the case of any deferment of principal as provided
in paragraph ' Twelfth ' of section 12 of this Act, it shall be the
duty of the Secretary of the Treasury, on behalf of the United
States, upon the request of the Federal land bank making the
extension, and with the approval of the Farm Loan Commissioner,
to subscribe at such periods as the Commissioner shall determine,
to the paid-in surplus of such bank an amount equal to the amount
of all such extensions and deferments made by the bank during the
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
37
preceding period. Such subscriptions shall be subject to call, in
whole or in part, by the bank with the approval of the Commissioner
upon thirty days' notice. To enable the Secretary of the Treasury
to make such subscriptions to the paid-in surplus of the Federal
land banks, there is hereby authorized to be appropriated the sum
of $50,000,000, to be immediately available and remain available
until expended. Upon payment to any Federal land bank of the
amount of any such subscription, such bank shall execute and deliver
a receipt therefor to the Secretary of the Treasury in form to be
prescribed by the Farm Loan Commissioner. The amount of any
subscriptions to the paid-in surplus of any such bank may be repaid
in whole or in part at any time in the discretion of the bank and
with the approval of the Farm Loan Commissioner, and the Commissioner may at any time require such subscriptions to be repaid
in whole or in part if in his opinion the bank has resources available
therefor."
REDUCTION OF INTEREST ON LOANS AND DEFERMENT OF PRINCIPAL
SEC. 24. Section 12 of the Federal Farm Loan Act, as amended
(U.S.C., title 12, sees. 771-772), is amended by adding at the end
thereof the following new paragraph:
" Twelfth. Notwithstanding the provisions of paragraph ' Second,'
the rate of interest on any loans on mortgage made through national
farm-loan associations or through agents as provided in section 15,
or purchased from joint-stock land banks, by any Federal land
bank, outstanding on the date this paragraph takes effect or made
through national farm-loan associations within two years after
such date, shall not exceed 4% per centum per annum for all interest
payable on installment dates occurring within a period of five years
commencing sixty days after the date this paragraph takes effect ;
and no payment of the principal portion of any installment of any
such loan shall be required during such five-year period if the borrower shall not be in default with respect to any other condition or
covenant of his mortgage. The foregoing provisions shall apply
to loans made by Federal land banks through branches, except that
the rate of interest on such loans for such five-year period shall
be 5 per centum in lieu of 4% per centum. The Secretary of the
Treasury shall pay each Federal land bank, as soon as practicable
after October 1, 1933, and after the end of each quarter thereafter,
such amount as the Farm Loan Commissioner certifies to the Secretary of the Treasury is equal to the amount by which interest payments on mortgages held by such bank have been reduced, during
the preceding quarter, by reason of this paragraph ; but in any case
in which the Farm Loan Commissioner finds that the amount of
interest payable by such bank during any quarter has been reduced
by reason of the refinancing of bonds under section 32 of this Act,
the amount of the reduction so found shall be deducted from the
amount payable to such bank under this paragraph. No payments
shall be made to a bank with respect to any period after June 30,
38
TEXTS OF LAWS
1938. There is authorized to be appropriated, out of any money
in the Treasury not otherwise appropriated, the sum of $15,000,000
for the purpose of enabling the Secretary of the Treasury to make
payments to Federal land banks which accrue during the "fiscal year
ending June 30, 1934, and such additional amounts as may be
necessary to make payments accruing during subsequent fiscal years.
INCREASE OF AMOUNT OF LOANS TO BORROWERS
SEC. 25. Paragraph " Seventh " of section 12 of the Federal Farm
Loan Act, as amended (U.S.C., title 12, sec. 771) (relating to the
limitations as to amount of loans), is amended by striking out
" $25,000 " and inserting " $50,000, but loans to any one borrower
shall not exceed £25,000 unless approved by the Farm Loan
Commissioner."
DIRECT LOANS
S E C 26. Section 7 of the Federal Farm Loan Act, as amended,
is amended by striking out the last paragraph and inserting in lieu
thereof the following new paragraphs:
" Whenever it shall appear to the Farm Loan Commissioner that
national farm-loan associations have not been formed in any locality
in the continental United States, or that the farmers residing in
the territory covered by the charter of a national farm-loan association are unable to apply to the Federal land bank of the district for
loans on account of the inability of the bank to accept applications
from such association, the Farm Loan Commissioner shall authorize
said bank to make direct loans to borrowers secured by first mortgages on farm lands situated within any such locality or territory.
Except as herein otherwise specifically provided, all provisions of
this Act applicable with respect to loans made through national
farm-loan associations shall, insofar as practicable, apply with
respect to such direct loans, and the Farm Loan Commissioner is
authorized to make such rules and regulations as he may deem
necessary with respect to such direct loans.
" The rate of interest on such direct loans made at any time by any
Federal land bank shall be one-half of 1 per centum per annum
in excess of the rate of interest charged to borrowers on mortgage
loans made at such time by the bank through national farm-loan
associations.
" Each borrower who obtains a direct loan from a Federal land
bank shall subscribe and pay for stock in such bank in the sum of
$5 for each $100 or fraction thereof borrowed. Such stock shall
be held by such Federal land bank as collateral security for the loan
of the borrower and shall participate in all dividends. Upon full
payment of the loan such stock shall, if still outstanding, be canceled at par, or, in the event that such stock shall have become
impaired, at the estimated value thereof as approved by the Farm
Loan Commissioner, and the proceeds thereof shall be paid to the
borrower.
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
39
" Each such borrower may covenant in his mortgage that, whenever there are ten or more borrowers who have obtained from a
Federal land bank direct loans under the provisions of this section
aggregating not less than $20,000, and who reside in a locality which
may, in the opinion of the Farm Loan Commissioner, be conveniently
covered by the charter of and served by a national farm-loan association, he will unite with such other borrowers to form a national
farm-loan association. Such borrowers shall organize the association subject to the requirements and the conditions specified in this
section, so far as the same may be applicable, and in accordance with
rules and regulations of the Farm Loan Commissioner. As soon as
the organization of the association has been approved by the Farm
Loan Commissioner, the stock in the Federal land bank held by
each of the members of such association shall be canceled at par, and
in lieu thereof the bank shall issue in the name of the association an
equal amount of stock in said bank, which stock shall be held by said
bank as collateral security as provided in this section with respect
to other loans through national farm-loan associations. Thereupon
there shall be issued to each such member an amount of capital
stock in the association equal to the amount which he previously
held in said bank, which stock shall be held by said association as collateral security as provided in section 8 of this Act. The board of
directors of said association shall adopt a resolution authorizing
and directing its secretary-treasurer on behalf of said association to
endorse, and thereby become liable for the payment of, the mortgages taken from its charter members by the Federal land bank.
When it shall appear to the satisfaction of the Farm Loan Commissioner that all the foregoing conditions have been complied with,
and upon the granting of the charter by the Farm Loan Commissioner, the interest rate paid by each charter member of such association whose loan is in good standing shall, beginning with his
next regular installment date, be reduced to the rate of interest paid
by borrowers on new loans made through national farm-loan associations in the same Federal land-bank district at the time the said
loan was made to such charter member.
" Charges to be paid by applicants for direct loans from a Federal
land bank shall not exceed amounts to be fixed by the Farm Loan
Commissioner and shall in no case exceed the charges which may
be made to applicants for loans and borrowers through national
farm-loan associations under the provisions of sections 11 and 13
of this Act."
LOANS TO RECEIVERS
SEC. 27. Any receiver appointed by the Federal Farm Loan Board
pursuant to section 29 of the Federal Farm Loan Act, as amended,
or any receiver appointed by a district court of the United States,
is authorized, for the purpose of paying taxes on farm real estate
owned by the bank or securing the mortgages held by it, with the
approval of the Farm Loan Commissioner, to borrow from the
Reconstruction Finance Corporation and to issue receiver's certifi-
40
TEXTS OF LAWS
cates against the assets of such bank as security for any loan received
from the Corporation under this section, and such certificates shall
constitute a prior lien on such assets. The Reconstruction Finance
Corporation is authorized to make loans to such receivers for the
purposes of this section.
FEDERAL FARM-LOAN BONDS AS SECURITY FOR ADVANCES BY FEDERAL
RESERVE BANKS
SEC. 28. The eighth paragraph of section 13 of the Federal Reserve
Act, as amended, is amended by inserting before the period at the
end thereof a comma and the following: " or by the deposit or pledge
of bonds issued pursuant to the paragraph added to section 32 of the
Federal Farm Loan Act, as amended by section 21 of the Emergency
Farm Mortgage Act of 1933."
PART 2—JOINT-STOCK
LAND BANKS
LIMITATIONS ON ISSUE OF BONDS AND LENDING
SEC. 29. After the date of enactment of this Act, no joint-stock
land bank shall issue any tax-exempt bonds or make any farm loans
except such as are necessary and incidental to the refinancing of
existing loans or bond issues or to the sale of any real estate now
owned or hereafter acquired by such bank.
LOANS TO JOINT-STOCK LAND BANKS TO PROVIDE FOR ORDERLY
LIQUIDATION
SEC. 30. (a) The Reconstruction Finance Corporation is authorized and directed to make available to the Farm Loan Commissioner,
out of the funds of the Corporation, the sum of $100,000,000, to be
used, for a period not exceeding two years from the date of enactment of this Act, for the purpose of making loans to the joint-stock
land banks organized and doing business under the Federal Farm
Loan Act, as amended, at a rate of interest not to exceed 4 per
centum per annum, payable annually. Such loans shall be made
upon application therefor by such banks and upon compliance with
the requirements of this section. The amount which may be loaned
hereunder to any such bank shall not exceed an amount having the
same proportion to the said $100,000,000 as the unpaid principal of
the mortgages held by such bank on the date of enactment of this
Act bears to the total amount of the unpaid principal of the mortgages held by all the joint-stock land banks on such date.
(¿>) Any joint-stock land bank applying for a loan under this
section shall deliver to the Farm Loan Commissioner as collateral
security therefor first mortgages or purchase-money mortgages on
farm lands, first mortgages on farm real estate owned by the bank
in fee simple, or such other collateral as may be available to said
bank, including sales contracts and sheriff's certificates on farm
lands. The real estate upon which such collateral is based shall be
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
41
appraised by appraisers appointed under the Federal Farm Loan
Act, as amended and the borrowing bank shall be entitled to borrow
not to exceed 60 per centum of the normal value of such real estate as
determined by such appraisal. Fees for such appraisals shall be
paid by the applicant banks in such amounts as may be fixed by the
Farm Loan Commissioner. No such loan shall be made until the
applicant bank, under regulations to be prescribed by the Farm
Loan Commissioner, (1) shall have agreed to grant to each borrower
then indebted to the bank under the terms of a first mortgage a
reduction to 5 per centum per annum in the rate of interest specified in such mortgage, beginning at his next regular installment date
occurring more than sixty days after the date of enactment of this
Act, and (2) shall have agreed to the satisfaction of the Commissioner that during a period of two years from the date of enactment
of this Act the bank will not proceed against the mortgagor on
account of default in the payment of interest or principal due under
the terms of its mortgage and will not foreclose its mortgage unless
the property covered by such mortgage is abandoned by the mortgagor or unless, in the opinion of the Commissioner, such foreclosure is necessary for other reasons. Such loans shall be made to
aid the orderly liquidation of any such bank in accordance with such
plan as may be approved by the Farm Loan Commissioner. Before
any such plan is approved by the Commissioner he shall be satisfied
that the plan carries out the purposes of this section and that such
part of the proceeds of the loan as is devoted to settlements with
bondholders will be used only to effect an equitable settlement with
all bondholders. After the plan has been approved by the Commissioner he shall require the bank to mail a copy thereof to all its
known bondholders and to publish a notice setting forth its provisions in at least three newspapers having general circulation.
LOANS BY THE FARM LOAN COMMISSIONER TO JOINT-STOCK
BANKS FOR EMERGENCY PURPOSES
LAND
SEC. 31. (a) Out of the funds made available to him under section 30, the Farm Loan Commissioner is authorized to make loans,
in an aggregate amount not exceeding $25,000,000, at a rate of interest not to exceed 4 per centum per annum, to any joint-stock land
bank for the purpose of securing the postponement for two years
from the date of the enactment of this Act of the foreclosure of first
mortgages held by such banks on account of (1) default in the payment of interest and principal due under the terms of the mortgage,
and (2) unpaid delinquent taxes, excluding interest and penalties,
which may be secured by the lien of said mortgage : Provided, That
during the period of postponement of foreclosure such bank shall
charge the mortgagor interest at a rate not exceeding 4 per centum
per annum on the aggregate amount of such delinquent taxes and
defaulted interest and principal with respect to which loans are
made pursuant to this section. The amount loaned to any joint-stock
land bank under this section shall be made without reappraisal:
42
TEXTS OF LAWS
Provided, That the amount loaned with respect to any mortgage on
account of unpaid principal shall not exceed 5 per centum of the
total unpaid principal of such mortgage, and the total amount
loaned to any such land bank with respect to any mortgage shall not
exceed 25 per centum of the total unpaid principal of such mortgage.
(b) No such loan shall be made with respect to any mortgage
unless the Farm Loan Commissioner is satisfied that the mortgagor,
after exercising ordinary diligence to pay his accrued delinquent
taxes, and meet accrued interest and principal payments, has
defaulted thereon ; and unless the bank shall have agreed to the satisfaction of the Farm Loan Commissioner that during such two-year
period the bank will not foreclose such mortgage unless the property covered thereby is abandoned by the mortgagor or unless in
the opinion of the Farm Loan Commissioner such foreclosure is
necessary for other reasons.
(c) Each such loan shall be secured by an assignment to the Farm
Loan Commissioner of the lien of the taxes and/or of the bank's
mortgage with respect to which the loan is made: Provided, That
the part of each such lien so assigned representing the interest and
principal due and unpaid in any such mortgage which has been
assigned to the farm loan registrar shall be subordinate to the
existing lien of the bank for the balance of the indebtedness then or
thereafter to become due under the terms of such mortgage ; but the
Farm Loan Commissioner may require the bank to furnish additional collateral as security for such loan, if such collateral is
available to the bank.
(d) The Farm Loan Commissioner is authorized to make such
rules and regulations as may be necessary to carry out the purposes
of this section and to make the relief contemplated immediately
available.
PART 3—LOANS TO FARMERS BY FARM LOAN COMMISSIONER
REDUCTION OF DEBTS AND REDEMPTION OF FORECLOSED FARMS
SEC. 32. The Reconstruction Finance Corporation is authorized
and directed to allocate and make available to the Farm Loan Commissioner the sum of $200,000,000, or so much thereof as may be
necessary, to be used for the purpose of making loans as hereinafter
provided to any farmer, secured by a first or second mortgage upon
the whole or any part of the farm property, real or personal,
including crops, of the farmer. The amount of the mortgage given
by any farmer, together with all prior mortgages or other evidences
of indebtedness secured by such farm property of the farmer, shall
not exceed 75 per centum of the normal value thereof, as determined
upon an appraisal made pursuant to the Federal Farm Loan Act, as
amended ; nor shall a loan in excess of $5,000, be made to any one
farmer. Every mortgage made under this section shall contain
an agreement providing for the repayment of the loan on an amortization plan by means of a fixed number of annual or semiannual
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
43
installments, sufficient to cover (1) interest on unpaid principal at
a rate not to exceed 5 per centum per annum and (2) such payments
equal in amount to be applied on principal as will extinguish the
debt within an agreed period of not more than ten years or, in the
case of a first or second mortgage secured wholly by real property
and made for the purpose of reducing and refinancing an existing
mortgage within an agreed period no greater than that for which
loans may be made under the Federal Farm Loan Act, as amended,
from the date the first payment on principal is due: Provided, That
during the first three years the loan is in effect payments of interest
only may be required if the borrower shall not be in default with
respect to any other condition or covenant of his mortgage. No
loan shall be made under this section unless the holder of any prior
mortgage or instrument of indebtedness secured by such farm property arranges to the satisfaction of the Farm Loan Commissioner
to limit his right to proceed against the farmer and such farm
property for default in payment of principal. Loans under this
section shall be made for the following purposes only: (1) Refinancing, either in connection with proceedings under chapter VIII
of the Bankruptcy Act of July 1, 1898, as amended (relating
to agricultural compositions and extensions), or otherwise, any
indebtedness, secured or unsecured, of the farmer, (2) providing
working capital for his farm operations, and (3) enabling any
farmer to redeem and/or repurchase farm property owned by him
prior to foreclosure which has been foreclosed at any time between
July 1, 1931, and the date of the enactment of this Act, or which is
foreclosed after the enactment of this Act. The provisions of paragraph " Ninth " of section 13 of the Federal Farm Loan Act, as
amended (relating to charges to applicants for loans and borrowers
from the Federal land banks), shall, so far as practicable, apply to
loans made under this section. As used in this section, the term
" farmer " means any individual who is bona fide engaged in farming
operations, either personally or through an agent or tenant, or the
principal part of whose income is derived from farming operations,
and includes a personal representative of a deceased farmer.
REGULATIONS
SEC. 33. The Farm Loan Commissioner is authorized to make
such rules and regulations, and to appoint, employ, and fix the compensation of such officers, employees, attorneys, and agents as may
be necessary to carry out the purposes of this title and to make the
relief contemplated by this title immediately available, without
regard to the provisions of other laws applicable to the employment
and compensation of officers and employees of the United States:
Provided, That no salary or compensation in excess of $10,000 shall
be paid to any person employed under the terms of the foregoing
section.
44
TEXTS OF LAWS
FACILITIES OF FEDERAL LAND BANKS AND NATIONAL FARM LOAN
ASSOCIATIONS MADE AVAILABLE
SEC. 34. The Federal land banks and the national farm loan
associations are authorized, upon request of the Farm Loan Commissioner, to make available to him their services and facilities to aid
in administering the provisions of this title.
PENALTIES
SEC. 35. Any person who shall knowingly make any material false
representation for the purpose of obtaining any loan under part 3
of this title, or in assisting in obtaining any such loan, shall, upon
conviction thereof, be fined not more than $1,000, or imprisoned not
more than six months, or both.
PART 4—REFINANCING OF AGRICULTURAL IMPROVEMENT DISTRICT
INDEBTEDNESS FOR THE BENEFIT OF FARMERS
LOANS BY RECONSTRUCTION FINANCE CORPORATION
SEC. 36. The Reconstruction Finance Corporation is authorized
and empowered to make loans as hereinafter provided, in an aggregate amount not exceeding $50,000,000; to drainage districts, levee
districts, levee and drainage districts, irrigation districts, and similar
districts, duly organized under the laws of any State, and to political
subdivisions of States, which prior to the date of enactment of this Act,
have completed projects devoted chiefly to the improvement of lands
or agricultural purposes. Such loans shall be made for the purpose of
enabling any such district or political subdivision (hereafter referred
to as the "borrower") to reduce and refinance its outstanding indebtedness incurred in connection with any such project, and shall be
subject to the same terms and conditions as loans made under section
5 of the Reconstruction Finance Corporation Act, as amended ; except
that (1) the term of any such loan shall not exceed forty years; (2)
each such loan shall be secured by refunding bonds issued to the
Corporation by the borrower which are a lien on the real property
within the project or on the amount of the assessments levied on
such property by the borrower pursuant to State law, or by such
other collateral as may be acceptable to the Corporation; (3) the
borrower shall agree not to issue during the term of the loan any
bonds so secured except with the consent of the Corporation; (4)
the borrower shall pay to the Corporation, until all bonds of the
borrower held by the Corporation are retired, an amount equal to
the amount by which the assessments against the real property
within the project collected by the borrower exceed the costs of
operation and maintenance of the project and interest on its
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
45
outstanding obligations; and (5) the borrower shall agree, to the
satisfaction of the Corporation, to reduce the outstanding indebtedness to the borrower of the landowners within such project by an
amount corresponding to that by which the indebtedness of the
borrower is reduced by reason of the operation of this section, to
distribute the amount of such reduction among such landowners on a
pro rata basis, to cancel and retire its outstanding bonds in an
aggregate amount equal to the amount of the reduction so distributed, and to permit the Corporation, in the case of the payment of the
bonds of the borrower or the liquidation of such project, to participate in such payment or in the proceeds of such liquidation on the
basis of the face amount of the bonds so retired plus the face amount
of the bonds held by the Corporation as security for the loan. No
loan shall be made under this section until the Reconstruction
Finance Corporation (A) has caused an appraisal to be made of the
property securing and/or underlying the outstanding bonds of the
applicant, (B) has determined that the project of the applicant is
economically sound, and (C) has been satisfied that an agreement
has been entered into between the applicant and the holders of its
outstanding bonds under which the applicant will be able to purchase
or refund such bonds at a price determined by the Corporation to be
reasonable after taking into consideration the average market price
of such bonds over the six months' period ending March 1, 1933,
and under which a substantial reduction will be brought about in
the amount of the outstanding indebtedness of the applicant.
SEC. 37. The Reconstruction Finance Corporation, upon request
of the Secretary of the Interior, is authorized and empowered to
advance from funds made available by section 2 of the Act of
January 22, 1932 (47 Stat.L. 5), to the reclamation fund created
by the Act of June 17, 1902 (32 Stat.L. 388), such sum or sums
as the Secretary of the Interior may deem necessary, not exceeding
$5,000,000, for the completion of projects or divisions of projects
now under construction, or projects approved and authorized.
Funds so advanced shall be repaid out of any receipts and accretions
accruing to the reclamation fund within such time as may be fixed by
the Reconstruction Finance Corporation, not exceeding five years
from the date of advance, with interest at the rate of 4 per centum
per annum. Sums so advanced may be expended in the same way
as other moneys in the reclamation fund.
PART 5—INCREASE OF LENDING POWER OF RECONSTRUCTION
FINANCE CORPORATION
SEC. 38. In order to provide funds to carry out the purposes of
this title, the amount of notes, debentures, bonds, or other such obligations which the Reconstruction Finance Corporation is authorized
and empowered under section 9 of the Reconstruction Finance Corporation Act, as amended, to have outstanding at any one time, is
hereby increased by $300,000,000.
46
TEXTS OF LAWS
PART 6—FUNCTIONS OF FARM LOAN COMMISSIONER U N D E R
EXECUTIVE ORDERS
SEC. 39. If and when any executive order heretofore transmitted
to the Congress pursuant to title IV of part II of the Legislative
Appropriation Act of 1933, as amended, shall become effective, all
functions, powers, authority, and duties conferred upon or vested in
the Farm Loan Commissioner by this title shall be held and exercised by him subject to all the terms and conditions in any such
Executive order the same as if such functions, powers, authority,
and duties were specifically named in such Executive order or orders.
PART 7—MISCELLANEOUS
PERFECTING ORGANIZATION FARM CREDIT ADMINISTRATION
SEC. 40. The Governor of the Farm Credit Administration is
authorized, in carrying out the powers and duties now or hereafter
vested in him or the Farm Credit Administration by law or under
any Executive order made under title IV of part II of the Legislative Appropriation Act of 1933, as amended, to establish, and to fix
the powers and duties of, such divisions, agencies, corporations, and
instrumentalities as he may deem necessary to the efficient functioning of the Farm Credit Administration and the successful execution
of the powers and duties so vested in the Governor and the Farm
Credit Administration. This section shall not be construed to
restrict the authority of the President under title IV of such Act, as
amended: Provided, That no salary or compensation shall be paid
to any officer, agent, or other person employed under this section in
excess of $10,000 per annum.
LOANS TO FRUIT GROWERS
SEC. 41. That in making loans to owners of groves and orchards,
including citrus-fruit groves and other fruit groves and orchards,
the Federal land banks, the farm land banks, and all Government
agencies making loans upon such character of property may, in
appraising the property offered as security, give a reasonable and
fair valuation to the fruit trees located and growing upon said
property and constituting a substantia] part of its value.
PART 8—SHORT T I T L E
SEC. 42. This title may be cited as the " Emergency Farm
Mortgage Act of 1933."
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
47
T I T L E I I I — F I N A N C I N G — A N D EXERCISING P O W E R CONFERRED BY
SECTION 8 OF ARTICLE I OF THE CONSTITUTION: T O COIN MONEY
AND TO REGULATE THE VALUE T H E R E O F
SEC. 43. Whenever the President finds, upon investigation, that
(1) the foreign commerce of the United States is adversely affected
by reason of the depreciation in the value of the currency of any
other government or governments in relation to the present standard
value of gold, or (2) action under this section is necessary in order
to regulate and maintain the parity of currency issues of the United
States, or (3) an economic emergency requires an expansion of credit,
or (4) an expansion of credit is necessary to secure by international
agreement a stabilization at proper levels of the currencies of various
governments, the President is authorized, in his discretion—
(a) To direct the Secretary of the Treasury to enter into agreements with the several Federal Reserve banks and with the Federal
Reserve Board whereby the Federal Reserve Board will, and it is
hereby authorized to, notwithstanding any provisions of law or
rules and regulations to the contrary, permit such reserve banks
to agree t h a t they will, (1) conduct, pursuant to existing law,
throughout specified periods, open market operations in obligations
of the United States Government or corporations in which the
United States is the majority stockholder, and (2) purchase directly
and hold in portfolio for an agreed period or periods of time
Treasury bills or other obligations of the United States Government
in an aggregate sum of $3,000,000,000 in addition to those they may
then hold, unless prior to the termination of such period or periods
the Secretary shall consent to their sale. No suspension of reserve
requirements of the Federal Reserve banks, under the terms of section 11 (c) of the Federal Reserve Act, necessitated by reason of
operations under this section, shall require the imposition of the
graduated t a x upon any deficiency in reserves as provided in said
section 11 (c). Nor shall it require any automatic increase in the
rates of interest or discount charged by any Federal Reserve bank,
as otherwise specified in t h a t section. The Federal Reserve Board,
with the approval of the Secretary of the Treasury, may require
the Federal Reserve banks to take such action as may be necessary,
in the judgment of the Board and of the Secretary of the Treasury,
to prevent undue credit expansion.
(b) If the Secretary, when directed by the President, is unable
to secure the assent of the several Federal Reserve banks and the
Federal Reserve Board to the agreements authorized in this section,
or if operations under the above provisions prove to be inadequate
to meet the purposes of this section, or if for any other reason
additional measures are required in the judgment of the President
to meet such purposes, then the President is authorized—
(1) To direct the Secretary of the Treasury to cause to be issued
in such amount or amounts as he may from time to time order,
United States notes, as provided in the Act entitled " An Act to
48
TEXTS OF LAWS
authorize the issue of United States notes and for the redemption
of funding thereof and for funding the floating debt of the United
States ", approved February 25, 1862, and Acts supplementary
thereto and amendatory thereof, in the same size and of similar color
to the Federal Reserve notes heretofore issued and in denominations
of $1, $5, $10, $20, $50, $100, $500, $1,000, and $10,000; but notes
issued under this subsection shall be issued only for the purpose of
meeting maturing Federal obligations to repay sums borrowed by
the United States and for purchasing United States bonds and
other interest-bearing obligations of the United States: Provided,
That when any such notes are used for such purpose the bond or
other obligation so acquired or taken up shall be retired and canceled. Such notes shall be issued at such times and in such amounts
as the President may approve but the aggregate amount of such
notes outstanding at any time shall not exceed $3,000,000,000.
There is hereby appropriated, out of any money in the Treasury not
otherwise appropriated, an amount sufficient to enable the Secretary
of the Treasury to retire and cancel 4 per centum annually of such
outstanding notes, and the Secretary of the Treasury is hereby
directed to retire and cancel annually 4 per centum of such outstanding notes. Such notes and all other coins and currencies heretofore or hereafter coined or issued by or under the authority of
the United States shall be legal tender for all debts public and
private.
(2) By proclamation to fix the weight of the gold dollar in grains
nine tenths fine and also to fix the weight of the silver dollar in
grains nine tenths fine at a definite fixed ratio in relation to the gold
dollar at such amounts as he finds necessary from his investigation
to stabilize domestic prices or to protect the foreign commerce
against the adverse effect of depreciated foreign currencies, and
to provide for the unlimited coinage of such gold and silver at
the ratio so fixed, or in case the Government of the United States
enters into an agreement with any government or governments
under the terms of which the ratio between the value of gold and
other currency issued by the United States and by any such government or governments is established, the President may fix the weight
of the gold dollar in accordance with the ratio so agreed upon, and
such gold dollar, the weight of which is so fixed, shall be the standard
unit of value, and all forms of money issued or coined by the United
States shall be maintained at a parity with this standard and it
shall be the duty of the Secretary of the Treasury to maintain such
parity, but in no event shall the weight of the gold dollar be fixed
so as to reduce its present weight by more than 50 per centum.
SEC. 44. The Secretary of the Treasury, with the approval of the
President, is hereby authorized to make and promulgate rules and
regulations covering any action taken or to be taken by the President under subsection (a) or (b) of section 43.
SEC. 45. (a) The President is authorized, for a period of six
months from the date of the passage of this Act, to accept silver in
AGRICULTURAL ADJUSTMENT AND FARM MORTGAGE
49
payment of the whole or any part of the principal or interest now
due, or to become due within six months after such date, from any
foreign government or governments on account of any indebtedness
to the United States, such silver to be accepted at not to exceed the
price of 50 cents an ounce in United States currency. The aggregate value of the silver accepted under this section shall not exceed
$200,000,000.
(b) The silver bullion accepted and received under the provisions
of this section shall be subject to the requirements of existing law
and the regulations of the mint service governing the methods of
determining the amount of pure silver contained, and the amount
of the charges or deductions, if any, to be made;.but such silver
bullion shall not be counted as part of the silver bullion authorized
or required to be purchased and coined under the provisions of
existing law.
(c) The silver accepted and received under the provisions of this
section shall be deposited in the Treasury of the United States, to
be held, used, and disposed of as in this section provided.
(d) The Secretary of the Treasury shall cause silver certificates
to be issued in such denominations as he deems advisable to the
total number of dollars for which such silver was accepted in payment of debts. Such silver certificates shall be used by the Treasurer of
the United States in payment of any obligations of the United States.
(e) The silver so accepted and received under this section shall
be coined into standard silver dollars and subsidiary coins sufficient,
in the opinion of the Secretary of the Treasury, to meet any demands
for redemption of such silver certificates issued under the provisions
of this section, and such coins shall be retained in the Treasury for
the payment of such certificates on demand. The silver so accepted
and received under this section, except so much thereof as is coined
under the provisions of this section, shall be held in the Treasury
for the sole purpose of aiding in maintaining the parity of such certificates as provided in existing law. Any such certificates or reissued certificates, when presented at the Treasury, shall be redeemed
in standard silver dollars, or in subsidiary silver coin, at the option
of the holder of the certificates: Provided, That, in the redemption
of such silver certificates issued under this section, not to exceed one
third of the coin required for such redemption may in the judgment
of the Secretary of the Treasury be made in subsidiary coins, the
balance to be made in standard silver dollars.
(/) When any silver certificates issued under the provisions of this
section are redeemed or received into the Treasury from any source
whatsoever, and belong to the United States, they shall not be
retired, canceled, or destroyed, but shall be reissued and paid out
again and kept in circulation ; but nothing herein shall prevent the
cancelation and destruction of mutilated certificates and the issue
of other certificates of like denomination in their stead, as provided
by law.
(g) The Secretary of the Treasury is authorized to make rules and
regulations for carrying out the provisions of this section.
4
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SEC. 46. Section 19 of the Federal Reserve Act, as amended, is
amended by inserting immediately after paragraph (c) thereof the
following new paragraph:
" Notwithstanding the foregoing provisions of this section, the
Federal Reserve Board, upon the affirmative vote of not less than
five of its members and with the approval of the President, may
declare that an emergency exists by reason of credit expansion, and
may by regulation during such emergency increase or decrease from
time to time, in its discretion, the reserve balances required to be
maintained against either demand or time deposits."
Approved May 12, 1933.
EMERGENCY RAILROAD TRANSPORTATION
ACT 1
[PUBLIC—No. 6 8 — 7 3 D CONGRESS]
[S. 1580]
AN ACT
To relieve the existing national emergency in relation to interstate railroad
transportation, and to amend sections 5, 15a, and 19a of the Interstate
Commerce Act, as amended.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the " Emergency Railroad Transportation Act, 1933."
TITLE I—EMERGENCY POWERS
SECTION 1.
As used in this title—
(a) The term "Commission" means the Interstate Commerce
Commission.
(6) The term "Coordinator" means the Federal Coordinator of
Transportation hereinafter provided for.
(c) The term " committee " means any one of the regional coordinating committees hereinafter provided for.
(d) The term " carrier " means any common carrier by railroad
subject to the provisions of the Interstate Commerce Act, as
amended, including any receiver or trustee thereof.
(e) The term " subsidiary " means any company which is directly
or indirectly controlled by, or affiliated with, any carrier or carriers.
For the purpose of the foregoing definition a company shall be
deemed to be affiliated with a carrier if so affiliated within the
meaning of paragraph (8) of section 5 of the Interstate Commerce
Act, as amended by this Act.
(/) The term " employee " includes every person in the service of
a carrier (subject to its continuing authority to supervise and direct
the manner of rendition of his service) who performs any work
defined as that of an employee or subordinate official in accordance
with the provisions of the Railway Labor Act.
1
Title II (" Amendments to Interstate Commerce Act ") is here omitted,
as its effect cannot be understood without reference to the original Act and
as its provisions are in any case less directly related to industrial and labour
questions. Further reference to it is made on page 73 below.
52
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(g) The term " State commission " means the commission, board,
or official, by whatever name designated, exercising power to
regulate the rates or service of common carriers by railroad under
the laws of any State.
SEC. 2. In order to foster and protect interstate commerce in
relation to railroad transportation by preventing and relieving
obstructions and burdens thereon resulting from the present acute
economic emergency, and in order to safeguard and maintain an
adequate national system of transportation, there is hereby created
the office of Federal Coordinator of Transportation, who shall be
appointed by the President, by and with the advice and consent
of the Senate or be designated by the President from the membership of the Commission. If so designated, the Coordinator shall be
relieved from other duties as Commissioner during his term of
service to such extent as the President may direct ; except that the
Coordinator shall not sit as a member of the Commission in any
proceedings for the review or suspension of any order issued by him
as Coordinator. The Coordinator shall have such powers and duties
as are hereinafter set forth and prescribed, and may, with the
approval of the President, and without regard to the civil service
laws and the Classification Act of 1923, as amended, appoint and
fix the compensation of such assistants and agents, in addition to
the assistance provided by the Commission, as may be necessary to
the performance of his duties under this Act. The office of the
Coordinator shall be in Washington, District of Columbia, and the
Commission shall provide such office space, facilities, and assistance
as he may request and it is able to furnish. The Coordinator shall
receive such compensation as the President shall fix, except that
if designated from the Commission, he shall receive no compensation
in addition to that which he receives as a member of the Com-;
mission.
SEC. 3. The Coordinator shall divide the lines of the carriers into
three groups, to wit, an eastern group, a southern group, and a
western group, and may from time to time make such changes or
subdivisions in such groups as he may deem to be necessary or
desirable. At the earliest practicable date after the Coordinator
shall have initially designated such groups, three regional coordinating committees shall be created, one for each group, and each
committee shall consist of five regular members and two special
members. The carriers in each group, acting each through its
board of directors or its receiver or receivers or trustee or trustees
or through an officer or officers designated for the purpose by such
board, shall select the regular members of the committee representing that group, and shall prescribe the rules under which such
committee shall operate; but no railroad system shall have more
than one representative on any such committee. In such selection
each carrier shall have a vote in proportion to its mileage lying
within the group. The two special members of each committee
shall be selected in such manner as the Coordinator may approve,
EMERGENCY RAILROAD TRANSPORTATION ACT
53
one to represent the steam railroads within the group which had
in 1932 railway operating revenues of less than $1,000,000 and the
other to represent electric railways within the group not owned by
a steam railroad or operated as a part of a general steam railroad
system of transportation. Each such special member shall have
reasonable notice of all meetings of his committee at which any
matter affecting any carrier which he represents is to be considered,
and may participate in the consideration and disposition of such
matter. Members of the committees may be removed from office
and vacancies may be filled in like manner.
SEC. 4. The purposes of this title are (1) to encourage and promote
or require action on the part of the carriers and of subsidiaries subject to the Interstate Commerce Act, as amended, which will (a)
avoid unnecessary duplication of services and facilities of whatsoever nature and permit the joint use of terminals and trackage
incident thereto or requisite to such joint use: Provided, That no
routes now existing shall be eliminated except with the consent of
all participating lines or upon order of the Coordinator, (b) control
allowances, accessorial services and the charges therefor, and other
practices affecting service or operation, to the end that undue
impairment of net earnings may be prevented, and (c) avoid other
wastes and preventable expense; (2) to promote financial reorganization of the carriers, with due regard to legal rights, so as to reduce
fixed charges to the extent required by the public interest and
improve carrier credit ; and (3) to provide for the immediate study
of other means of improving conditions surrounding transportation
in all its forms and the preparation of plans therefor.
SEC 5. It shall be the duty of the committees on their own
initiative, severally within each group and jointly where more than
one group is affected, to carry out the purposes set forth in subdivision (1) of section 4, so far as such action can be voluntarily accomplished by the carriers. In such instances as the committees are
unable, for any reason, legal or otherwise, to carry out such purposes
by such voluntary action, they shall recommend to the Coordinator
that he give appropriate directions to the carriers or subsidiaries
subject to the Interstate Commerce Act, as amended, by order;
and the Coordinator is hereby authorized and directed to issue and
enforce such orders if he finds them to be consistent with the public
interest and in furtherance of the purposes of this title.
SEC. 6 (a). The Coordinator shall confer freely with the committees and give them the benefit of his advice and assistance.
At his request, the committees, the carriers, the subsidiaries, and
the Commission shall furnish him, or his assistants and agents, such
information and reports as he may desire in investigating any
matter within the scope of his duties under this title; and the
Coordinator, his assistants, and agents, and the Commission, shall
at all times have access to all accounts, records, and memoranda of
the carriers and subsidiaries. If, in any instance, a committee
has not acted with respect to any matter which the Coordinator
54
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has brought to its attention and upon which he is of the opinion that
it should have acted, under the provisions of section 5, he is hereby
authorized and directed to issue and enforce such order, giving
appropriate directions to the carriers and subsidiaries subject to
the Interstate Commerce Act, as amended, with respect to such
matter, as he shall find to be consistent with the public interest.
(b) Insofar as may be necessary for the purposes of this title, the
Commission and the members and examiners thereof shall have the
same power to administer oaths and'require by subpena the attendance and testimony of witnesses and the production of books,
papers, tariffs, contracts, agreements, and documents and to take
testimony by deposition, relating to any matter under investigation,
as though such matter arose under the Interstate Commerce Act,
as amended and supplemented; and any person subpenaed or
testifying in connection with any matter under investigation
under this title shall have the same rights, privileges, and immunities
and be subject to the same duties, liabilities, and penalties as are
provided in the case of persons subpenaed or testifying in connection
with any matter under investigation under the Interstate Commerce
Act, as amended.
SEC. 7. (a) A labor committee for each regional group of carriers
may be selected by those railroad labor organizations which, as
representatives duly designated and authorized to act in accordance
with the requirements of the Railway Labor Act, entered into the
agreements of January 31, 1932, and December 21, 1932, with duly
authorized representatives of the carriers, determining the wage
payments of the employees of the carriers. A similar labor
committee for each regional group of carriers may be selected by
such other railroad labor organizations as may be duly designated
and authorized to represent employees in accordance with the
requirements of the Railway Labor Act. It shall be the duty of
the regional coordinating committees and the Coordinator to give
reasonable notice to, and to confer with, the appropriate regional
labor committee or committees upon the subject matter prior to
taking any action or issuing any order which will affect the interest
of the employees, and to afford the said labor committee or committees reasonable opportunity to present views upon said contemplated action or order.
(¿>) The number of employees in the service of a carrier shall
not be reduced by reason of any action taken pursuant to the
authority of this title below the number as shown by the pay rolls
of employees in service during the month of May, 1933, after
deducting the number who have been removed from the pay rolls
after the effective date of this Act by reason of death, normal
retirements, or resignation, but not more in any one year than 5
per centum of said number in service during May, 1933 ; nor shall
any employee in such service be deprived of employment such as
he had during said month of May or be in a worse position with
respect to his compensation for such employment, by reason of any
action taken pursuant to the authority conferred by this title.
EMERGENCY RAILROAD TRANSPORTATION ACT
55
(c) The Coordinator is authorized and directed to establish
regional boards of adjustment whenever and wherever action taken
pursuant to the authority conferred by this title creates conditions
that make necessary such boards of adjustment to settle controversies between carriers and employees. Carriers and their employees shall have equal representation on such boards of adjustment for settlement of such controversies, and said boards shall
exercise the functions of boards of adjustment provided for by the
Railway Labor Act.
(d) The Coordinator is authorized and directed to provide means
for determining the amount of, and to require the carriers to make
just compensation for, property losses and expenses imposed upon
employees by reason of transfers of work from one locality to another in carrying out the purposes of this title.
(e) Carriers, whether under control of a judge, trustee, receiver,
or private management, shall be required to comply with the provisions of the Railway Labor Act and with the provisions of section
77, paragraphs (o), (p), and (q), of the Act approved March 3, 1933,
entitled " An Act to amend an Act entitled 'An Act to establish a
uniform system of bankruptcy throughout the United States,'
approved July 1, 1898, and Acts amendatory thereof and supplementary thereto."
SEC. 8. Any order issued by the Coordinator pursuant to this
title shall be made public in such reasonable manner as he may
determine and shall become effective as of such date, not less than
twenty days from the date of such publication, as the Coordinator
shall prescribe in the order; and such order shall remain in effect
until it is vacated by him or suspended or set aside by the Commission or other lawful authority, as hereinafter provided, and such
order may include provision for the creation and administration
of such just pooling arrangements or for such just compensation
for the use of property or for carrier services as he may deem
necessary or desirable and in furtherance of the purposes of this title.
SEC. 9. Any interested party, including, among others, any
carrier, subsidiary, shipper, or employee, or any group of carriers,
shippers, or employees, or any State commission, or the Governor
of any State, or the official representative or representatives of any
political subdivision thereof, dissatisfied with any order of the
Coordinator may, at any time prior to the effective date of the order,
file a petition with the Commission asking that such order be
reviewed and suspended pending such review, and stating fully
the reasons therefor. Such petitions shall be governed by such
general rules as the Commission may establish. If the Commission,
upon considering such petition and any answer or answers thereto,
finds reason to believe that the order may be unjust to the petitioner
or inconsistent with the public interest, the Commission is hereby
authorized to grant such review and, in its discretion, the Commission may suspend the order if it finds immediate enforcement
thereof would result in irreparable damage to the petitioner or work
56
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grave injury to the public interest, but if the Commission suspends
an order, it shall expedite the hearing and decision on that order as
much as possible. Thereupon the Commission shall, after due
notice and a public hearing, review the order and take such action
in accord with the purposes of this title as it finds to be just and
consistent with the public interest, either confirming the order or
setting it aside or reissuing it in modified form, and any order so
confirmed or reissued shall thereafter remain in effect until vacated
or modified by the Commission.
SEC. 10. (a) The carriers or subsidiaries subject to the Interstate
Commerce Act, as amended, affected by any order of the Coordinator
or Commission made pursuant to this title shall, so long as such order
is in effect, be, and they are hereby, relieved from the operation of
the antitrust laws, as designated in section 1 of the Act entitled
" An Act to supplement existing laws against unlawful restraints and
monopolies, and for other purposes," approved October 15, 1914,
and of all other restraints or prohibitions by law, State or Federal,
other than such as are for the protection of the public health or
safety, in so far as may be necessary to enable them to do anything
authorized or required by such order made pursuant to this title:
Prodded, however, That nothing herein shall be construed to repeal,
amend, suspend, or modify any of the requirements of the Railway
Labor Act or the duties and obligations imposed thereunder or
through contracts entered into in accordance with the provisions
of said Act.
(b) The Coordinator shall issue no order which shall have the
effect of relieving any carrier or subsidiary from the operation of the
law of any State or of any order of any State commission until he has
advised the State commission of said State, or the Governor of said
State if there be no such commission, that such order is in contemplation, and shall afford the State commission or Governor so
notified reasonable opportunity to present views and information
bearing upon such contemplated order, nor unless such order is
necessary, in his opinion, to prevent or remove an obstruction to or
a burden upon interstate commerce.
SEC. 11. Nothing in this title shall be construed to relieve any
carrier from any contractual obligation which it may have assumed,
prior to the enactment of this Act, with regard to the location or
maintenance of offices, shops, or round-houses at any point.
SEC. 12. The willfull failure or refusal of any carrier or subsidiary
or of any officer or employee of any carrier or subsidiary to comply
with the terms of any order of the Coordinator or of the Commission
made pursuant to this title shall be a misdemeanor, and upon c onviction thereof the carrier, subsidiary, or person offending shall be
subject to a fine of not less than $1,000 or more than $20,000 for
each offense, and each day during which such carrier, subsidiary, or
person shall willfully fail or refuse to comply with the terms of such
order shall constitute a separate offense. It shall be the duty of
any district attorney of the United States to whom the Coordinator
EMERGENCY RAILROAD TRANSPORTATION ACT
57
or the Commission may apply to institute in the proper court and
to prosecute under the direction of the Attorney General of the
United States all necessary proceedings for the enforcement of the
provisions of this title and for the punishment of all violations
thereof, and the cost and expenses of such prosecution shall be paid
out of the appropriation for the expense of the courts of the United
States: Provided, That nothing in this title shall be construed to
require any employee or officer of any carrier to render labor or
service without his consent, or to authorize the issuance of any
orders requiring such service, or to make illegal the failure or refusal
of any employee individually, or any number of employees collectively, to render labor or services.
SEC. 13. It shall further be the duty of the Coordinator, and he
is hereby authorized and directed, forthwith to investigate and
consider means, not provided for in this title, of improving transportation conditions throughout the country, including cost finding
in rail transportation and the ability, financial or otherwise, of the
carriers to improve their properties and furnish service and charge
rates which will promote the commerce and industry of the country
and including, also, the stability of railroad labor employment and
other improvement of railroad labor conditions and relations; and
from time to time he shall submit to the Commission such recommendations calling for further legislation to these ends as he may
deem necessary or desirable in the public interest. The Commission
shall promptly transmit such recommendations, together with its
comments thereon, to the President and to the Congress.
SEC. 14. The expenses of the Coordinator except so far as they are
borne by the Commission in accordance with the provisions of
section 2, but not including the expenses of the coordinating com-"
mittees, shall be allowed and paid, on the presentation of itemized
vouchers therefor approved by the Coordinator, out of a fund
obtained from assessments on the carriers, and said fund is hereby
appropriated for the payment of such expenses. It shall be the
duty of each carrier, within thirty days after the date of enactment
of this Act, to pay into this fund, for the first year of the operation
of this title, one and one-half dollars for every mile of road operated
by it on December 31, 1932, as reported to the Commission, and to
pay into said fund within thirty days after the expiration of such
year a proportional amount covering any period of extension of this
title by proclamation of the President under section 17, and it shall
be the duty of the Secretary of the Treasury to collect such assessments. Any amount remaining in the fund when this title ceases
to have effect shall be returned by the Secretary of the Treasury
to the carriers in proportion to their contributions. The carriers
and the Pullman Company shall be permitted, anything in the Interstate Commerce Act, as amended, to the contrary notwithstanding,
to provide free transportation and other carrier service to the
Coordinator and his assistants and agents and to the employees of
the Commission when engaged in the service of the Coordinator.
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SEC. 15. The Commission shall not approve a loan to a carrier
under the Reconstruction Finance Corporation Act, as amended,
if it is of the opinion that such carrier is in need of financial reorganization in the public interest: Provided, however, That the term
" carrier " as used in this section shall not include a receiver or
trustee.
S E C 16. Any final order made under this title shall be subject to
the same right of relief in court by any party in interest as is now
provided in respect to orders of the Commission made under the
Interstate Commerce Act, as amended. The provisions of the
Urgent Deficiencies Appropriation Act of October 22,1913 (38 Stat.
L. 219), shall be applicable to any proceeding in court brought to
suspend or set aside any order of the Coordinator or of the Commission entered pursuant to the provisions of this title.
SEC. 17. This title shall cease to have effect at the end of one
year after the effective date, unless extended by a proclamation of
the President for one year or any part thereof, but orders of the
Coordinator or of the Commission made thereunder shall continue
in effect until vacated by the Commission or set aside by other
lawful authority, but notwithstanding the provisions of section 10
no such order shall operate to relieve any carrier from the effect
of any State law or of any order of a State commission enacted or
made after this title ceases to have effect.
Approved, June 16, 1933, 12.05 p.m.
FEDERAL EMERGENCY RELIEF ACT OF 1933
[PUBLIC—No. 15—73D CONGRESS]
[H. R. 4606]
AN ACT
To provide for cooperation by the Federal Government with the several States
and Territories and the District of Columbia in relieving the hardship and
suffering caused by unemployment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the Congress
hereby declares that the present economic depression has created a
serious emergency, due to widespread unemployment and increasing
inadequacy of State and local relief funds, resulting in the existing
or threatened deprivation of a considerable number of families and
individuals of the necessities of life, and making it imperative that
the Federal Government cooperate more effectively with the several
States and Territories and the District of Columbia in furnishing
relief to their needy and distressed people.
Sec. 2. (a) The Reconstruction Finance Corporation is authorized
and directed to make available out of the funds of the Corporation
not to exceed $500,000,000, in addition to the funds authorized
under title I of the Emergency Relief and Construction Act of 1932,
for expenditure under the provisions of this Act upon certification
by the Federal Emergency Relief Administrator provided for in
section 3.
(¿>) The amount of notes, debentures, bonds, or other such obligations which the Reconstruction Finance Corporation is authorized
and empowered under section 9 of the Reconstruction Finance
Corporation Act, as amended, to have outstanding at any one time
is increased by $500,000,000: Provided, That no such additional
notes, debentures, bonds, or other such obligations authorized
by this subsection shall be issued except at such times and in such
amounts as the President shall approve.
(c) After the expiration of ten days after the date upon which the
Federal Emergency Relief Administrator has qualified and has
taken office, no application shall be approved by the Reconstruction
Finance Corporation under the provisions of title I of the Emergency
Relief and Construction Act of 1932, and the Federal Emergency
Relief Administrator shall have access to all files and records of
the Reconstruction Finance Corporation relating to the administration of funds under title I of such Act. At the expiration of such
ten-day period, the unexpended and unobligated balance of the
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funds authorized under title I of such Act shall be available for the
purposes of this Act.
SEC. 3. (a) There is hereby created a Federal Emergency Relief
Administration, all the powers of which shall be exercised by a
Federal Emergency Relief Administrator (referred to in this Act as
the " Administrator ") to be appointed by the President, by and
with the advice and consent of the Senate. The Administrator shall
receive a salary to be fixed by the President at not to exceed
$10,000, and necessary traveling and subsistence expenses within
the limitations prescribed by law for civilian employees in the
executive branch of the Government. The Federal Emergency
Relief Administration and the office of Federal Emergency Relief
Administrator shall cease to exist upon the expiration of two years
after the date of enactment of this Act, and the unexpended balance
on such date of any funds made available under the provisions of
this Act shall be disposed of as the Congress may by law provide.
(b) The Administrator may appoint and fix the compensation of
such experts and their appointment may be made and compensation
fixed without regard to the civil service laws, or the Classification
Act of 1923, as amended, and the Administrator may, in the same
manner, appoint and fix the compensation of such other officers
and employees as are necessary to carry out the provisions of this
Act, but such compensation shall not exceed in any case the sum of
$8,000; and may make such expenditures (including expenditures
for personal services and rent at the seat of government and elsewhere and for printing and binding), not to exceed $350,000, as are
necessary to carry out the provisions of this Act, to be paid by the
Reconstruction Finance Corporation out of funds made available
by this Act upon presentation of vouchers approved by the Administrator or by an officer of the Administration designated by him
for that purpose. The Administrator may, under rules and regulations prescribed by the President, assume control of the administration in any State or States where, in his judgment, more effective
and efficient cooperation between the State and Federal authorities
may thereby be secured in carrying out the purposes of this Act.
(c) In executing any of the provisions of this Act, the Administrator, and any person duly authorized or designated by him, may
conduct any investigation pertinent or material to the furtherance
of the purposes of this Act and, at the request of the President, shall
make such further investigations and studies as the President may
deem necessary in dealing with problems of unemployment relief.
(d) The Administrator shall print monthly, and shall submit to
the President and to the Senate and the House of Representatives
(or to the Secretary of the Senate and the Clerk of the House of
Representatives, if those bodies are not in session), a report of his
activities and expenditures under this Act. Such reports shall,
when submitted, be printed as public documents.
••'.. SEC. 4. (a) Out of the funds of the Reconstruction Finance Corporation made available by this Act, the Administrator is authorized to
FEDERAL EMERGENCY RELIEF ACT
61
make grants to the several States to aid in meeting the costs of
furnishing relief and work relief and in relieving the hardship and
suffering caused by unemployment in the form of money, servicer
materials, and/or commodities to provide the necessities of life
to persons in need as a result of the present emergency, and/or to
their dependents, whether resident, transient, or homeless.
(b) Of the amounts made available by this Act not to exceed
§250,000,000 shall be granted to the several States applying therefor,
in the following manner: Each State shall be entitled to receive
grants equal to one third of the amount expended by such State,
including the civil subdivisions thereof, out of public moneys from
all sources for the purposes set forth in subsection (a) of this section;
and such grants shall be made quarterly, beginning with the second
quarter in the calendar year 1933, and shall be made during any
quarter upon the basis of such expenditures certified by the States
to have been made during the preceding quarter.
(c) The balance of the amounts made available by this Act,
except the amount required for administrative expenditures under
section 3, shall be used for grants to be made whenever, from an
application presented by a State, the Administrator finds that the
combined moneys which can be made available within the State
from all sources, supplemented by any moneys, available under
subsection (b) of this section, will fall below the estimated needs
within the State for the purposes specified in subsection (a) of this
section: Provided, That the Administrator may certify out of the
funds made available by this subsection additional grants to States
applying therefor to aid needy persons who have no legal settlement
in any one State or community, and to aid in assisting cooperative
and self-help associations for the barter of goods and services.
(d) After October 1, 1933, notwithstanding the provisions of
subsection (b), the unexpended balance of the amounts available
for the purposes of subsection (b) may, in the discretion of the
Administrator and with the approval of the President, be available
for grants under subsection (c).
(e) The decision of the Administrator as to the purpose of any
expenditure shall be final.
(/) The amount available to any one State under subsections (b)
and (c) of this section shall not exceed 15 per centum of the total
amount made available by such subsections.
SEC. 5. Any State desiring to obtain funds under this Act shall
through its Governor make application therefor from time to time
to the Administrator. Each application so made shall present in
the manner requested by the Administrator information showing
(1) the amounts necessary to meet relief needs in the State during
the period covered by such application and the amounts available
from public or private sources within the State, ite political subdivisions, and private agencies, to meet the relief needs of the State,
(2) the provision made to assure adequate administrative supervision, (3) the provision made for suitable standards of relief, and
(4) the purposes for which the funds requested will be used.
62
TEXTS OF LAWS
SEC. 6. The Administrator upon approving a grant to any State
shall so certify to the Reconstruction Finance Corporation which
shall, except upon revocation of a certificate by the Administrator,
make payments without delay to the State in such amounts and at
such times as may be prescribed in the certificate. The Governor
of each State receiving grants under this Act shall file monthly with
the Administrator, and in the form required by him, a report of the
disbursements made under such grants.
SEC. 7. As used in the foregoing provisions of this Act, the term
" State " shall include the District of Columbia, Alaska, Hawaii, the
Virgin Islands, and Puerto Rico ; and the term " Governor " shall
include the Commissioners of the District of Columbia.
SEC. 8. This Act may be cited as the " Federal Emergency Relief
Act of 1933."
Approved, May 12, 1933.
UNEMPLOYMENT RELIEF ACT
[PUBLIC—No. 5—73D CONGRESS]
[S. 598]
AN ACT
For the relief of unemployment through the performance of useful public
work, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That for the purpose of relieving the acute condition of widespread distress and
unemployment now existing in the United States, and in order to
provide for the restoration of the country's depleted natural
resources and the advancement of an orderly program of useful
public works, the President is authorized, under such rules and
regulations as he may prescribe and by utilizing such existing departments or agencies as he may designate, to provide for employing
citizens of the United States who are unemployed, in the construction, maintenance and carrying on of works of a public nature in
connection with the forestation of lands belonging to the United
States or to the several States which are suitable for timber production, the prevention of forest fires, floods and soil erosion, plant
pest and disease control, the construction, maintenance or repair of
paths, trails and fire-lanes in the national parks and national forests,
and such other work on the public domain, national and State, and
Government reservations incidental to or necessary in connection
with any projects of the character enumerated, as the President
may determine to be desirable: Provided, That the President may
in his discretion extend the provisions of this Act to lands owned by
counties and municipalities and lands in private ownership, but
only for the purpose of doing thereon such kinds of cooperative work
as are now provided for by Acts of Congress in preventing and
controlling forest fires and the attacks of forest tree pests and diseases
and such work as is necessary in the public interest to control floods.
The President is further authorized, by regulation, to provide for
housing the persons so employed and for furnishing them with such
subsistence, clothing, medical attendance and hospitalization, and
cash allowance, as may be necessary, during the period they are so
employed, and, in his discretion, to provide for the transportation
of such persons to and from the places of employment. That in
employing citizens for the purposes of this Act no discrimination
shall be made on account of race, color, or creed; and no person
under conviction for crime and serving sentence therefor shall be
employed under the provisions of this Act. The President is
64
TEXTS OF LAWS
further authorized to allocate funds available for the purposes of
this Act, for forest research, including forest products investigations,
by the Forest Products Laboratory.
SEC. 2. For the purpose of carrying out the provisions of this Act
the President is authorized to enter into such contracts or agreements with States as may be necessary, including provisions for
utilization of existing State administrative agencies, and the
President, or the head of any department or agency authorized by
him to construct any project or to carry on any such public works,
shall be authorized to acquire real property by purchase, donation,
condemnation, or otherwise, but the provisions of section 355 of the
Revised Statutes shall not apply to any property so acquired.
SEC. 3. Insofar as applicable, the benefits of the Act entitled " An
Act to provide compensation for employees of the United States
suffering injuries while in the performance of their duties, and for
other purposes ", approved September 7, 1916, as amended, shall
extend to persons given employment under the provisions of this
Act.
SEC. 4. For the purpose of carrying out the provisions of this Act,
there is hereby authorized to be expended, under the direction of the
President, out of any unobligated moneys heretofore appropriated
for public works (except for projects on which actual construction
has been commenced or may be commenced within ninety days,
and except maintenance funds for river and harbor improvements
already allocated), such sums as may be necessary; and an amount
equal to the amount so expended is hereby authorized to be
appropriated for the same purposes for which such moneys were
originally appropriated.
S E C 5. That the unexpended and unallotted balance of the sum
of $300,000,000 made available under the terms and conditions of
the Act approved July 21,1932, entitled " An Act to relieve destitution," and so forth, may be made available, or any portion thereof,
to any State or Territory or States or Territories without regard to
the limitation of 15 per centum or other limitations as to per centum.
SEC 6. The authority of the President under this Act shall continue for the period of two years next after the date of the passage
hereof and no longer.
Approved, March 31, 1933.
NATIONAL
EMPLOYMENT
SERVICE
ACT
[PUBLIC—No. 3 0 — 7 3 D CONGRESS]
[S. 510]
AN ACT
To provide for the establishment of a national employment system and for
cooperation with the States in the promotion of such system, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That (a) in order
to promote the establishment and maintenance of a national system
of public employment offices there is hereby created in the Department of Labor a bureau to be known as the United States Employment Service, at the head of which shall be a director. The director
shall be appointed by the President, by and with the advice and
consent of the Senate, and shall receive a salary at the rate of $8,500
per annum.
(b) Upon the expiration of three months after the enactment of
this Act the employment service now existing in the Department
of Labor shall be abolished; and all records, files, and property
(including office equipment) of the existing employment service
shall thereupon be transferred to the United States Employment
Service; and all the officers and employees of such service shall
thereupon be transferred to the United States Employment Service
created by this Act without change in classification or compensation.
SEC. 2. The Secretary of Labor is authorized, without regard to the
civil service laws, to appoint and, without regard to the Classification
Act of 1923, as amended, to fix the compensation of one or more
assistant directors and such other officers, employees, and assistants,
and to make such expenditures (including expenditures for personal
services and rent at the seat of government and elsewhere and for
law books, books of reference, and periodicals) as may be necessary
to carry out the provisions of this Act. In case of appointments
for service in the veterans' employment service provided for in
section 3 of this Act, the Secretary shall appoint only veterans of
wars of the United States.
SEC. 3. (a) It shall be the province and duty of the bureau to
promote and develop a national system of employment offices for
men, women, and juniors who are legally qualified to engage in
gainful occupations, to maintain a veterans' service to be devoted to
securing employment for veterans, to maintain a farm placement
service to maintain a public employment service for the District
5
66
TEXTS OF LAWS
of Columbia and, in the manner hereinafter provided, to assist in
establishing and maintaining systems of public employment offices
in the several States and the political subdivisions thereof in which
there shall be located a veterans' employment service. The bureau
shall also assist in coordinating the public employment offices
throughout the country and in increasing their usefulness by
developing and prescribing minimum standards of efficiency, assisting them in meeting problems peculiar to their localities, promoting
uniformity in their administrative and statistical procedure, furnishing and publishing information as to opportunities for employment and other information of value in the operation of the system,
and maintaining a system for clearing labor between the several
States.
(b) Whenever in this Act the word " State " or " States " is used
it shall be understood to include the Territories of Hawaii and
Alaska.
SEC. 4. In order to obtain the benefits of appropriations apportioned under section 5, a State shall, through its legislature, accept
the provisions of this Act and designate or authorize the creation
of a State agency vested with all powers necessary to cooperate with
the United States Employment Service under this Act.
SEC. 5. (a) For the purpose of carrying out the provisions of
this Act there is hereby authorized to be appropriated (1) the sum
of $1,500,000 for the fiscal year ending June 30, 1934, (2)
$4,000,000 for each fiscal year thereafter up to and including the
fiscal year ending June 30, 1938, (3) and thereafter such sums
annually as the Congress may deem necessary. Seventy-five per
centum of the amounts appropriated under this Act shall be apportioned by the director among the several States in the proportion
which their population bears to the total population of the States
of the United States according to the next preceding United States
census, to be available for the purpose of establishing and maintaining systems of public employment offices in the several States
and the political subdivisions thereof in accordance with the provisions of this Act. No payment shall be made in any year out of
the amount of such appropriations apportioned to any State until
an equal sum has been appropriated or otherwise made available
for that year by the State, or by any agency thereof, including
appropriations made by local subdivisions, for the purpose of maintaining public employment offices as a part of a State-controlled
system of public employment offices; except that the amounts so
appropriated by the State shall not be less than 25 per centum of
the apportionment according to population made by the director for
such State for the current year, and in no event less than $5,000.
The balance of the amounts appropriated under this Act shall be
available for all the purposes of this Act other than for apportionment among the several States as herein provided.
(b) The amounts apportioned to any State for any fiscal year
shall be available for payment to and expenditure by such State,
NATIONAL EMPLOYMENT SERVICE ACT
67
for the purposes of this Act, until the close of the next succeeding
fiscal year; except that amounts apportioned to any State for any
fiscal year preceding the fiscal year during which is commenced the
first regular session of the legislature of such State held after the
enactment of this Act shall remain available for payment to and
expenditure by such State until the close of the fiscal year next
succeeding that in which such session is commenced. Subject to the
foregoing limitations, any amount so apportioned unexpended at
the end of the period during which it is available for expenditure
under this Act shall, within sixty days thereafter, be reapportioned
for the current fiscal year among all the States in the same manner
and on the same basis, and certified to the Secretary of the Treasury
and treasurers of the States in the same manner, as if it were being
apportioned under this Act for the first time.
SEC. 6. Within sixty days after any appropriation has been made
under authority of this Act the director shall make the apportionment thereof as provided in section 5 and shall certify to the Secretary of the Treasury and to the treasurers of the several States the
amount apportioned to each State for the fiscal year for which the
appropriation has been made.
SEC. 7. Within sixty days after any appropriation has been made
under the authority of this Act, and as often thereafter while such
appropriation remains available as he deems advisable, the director
shall ascertain as to each of the several States (1) whether the State
has, through its legislature or its governor, as the case may be,
accepted the provisions of this Act and designated or authorized
the creation of an agency to cooperate with the United States
Employment Service in the administration of this Act in compliance
with the provisions of section 4 of this Act; and (2) the amounts,
if any, which have been appropriated or otherwise made available
by such State and by any agency thereof, including appropriations
made by local subdivisions, in compliance with the provisions of
section 5 of this Act. If the director finds that a State has complied
with the requirements of such sections, and if plans have been
submitted and approved in compliance with the provisions of section
8 of this Act, the director shall determine the amount of the payments, if any, to which the State is entitled under the provisions of
section 5, and certify such amount to the Secretary of the Treasury.
Such certificate shall be sufficient authority to the Secretary of the
Treasury to make payments to the State in accordance therewith.
SEC. 8. Any State desiring to receive the benefits of this Act shall,
by the agency designated to cooperate with the United States Employment Service, submit to the director detailed plans for carrying
out the provisions of this Act within such State. In those States
where a State board, department, or agency exists which is charged
with the administration of State laws for vocational rehabilitation
of physically handicapped persons, such plans shall include provision for cooperation between such board, department, or agency and
the agency designated to cooperate with the United States Employ-
68
TEXTS OF LAWS
ment Service under this Act. If such plans are in conformity with
the provisions of this Act and reasonably appropriate and adequate
to carry out its purposes, they shall be approved by the director and
due notice of such approval shall be given to the State agency.
SEC. 9. Each State agency cooperating with the United States
Employment Service under this Act shall make such reports concerning its operations and expenditures as shall be prescribed by the
director. It shall be the duty of the director to ascertain whether
the system of public employment offices maintained in each State is
conducted in accordance with the rules and regulations and the
standards of efficiency prescribed by the director in accordance with
the provisions of this Act. The director may revoke any existing
certificates or withhold any further certificate provided for in section 7, whenever he shall determine, as to any State, that the cooperating State agency has not properly expended the moneys paid to it
or the moneys herein required to be appropriated by such State, in
accordance with plans approved under this Act. Before any such
certificate shall be revoked or withheld from any State, the director
shall give notice in writing to the State agency stating specifically
wherein the State has failed to comply with such plans. The State
agency may appeal to the Secretary of Labor from the action of the
director in any such case, and the Secretary of Labor may either
affirm or reverse the action of the director with such directions as
he shall consider proper.
SEC. 10. During the current fiscal year and the two succeeding
fiscal years the Director is authorized to expend in any State so
much of the sum apportioned to such State according to population,
and so much of the unapportioned balance of the appropriation
made under the provisions of section 5 as he may deem necessary,
as follows:
(a) In States where there is no State system of public employment offices, in establishing and maintaining a system of public
employment offices under the control of the Director.
(b) In States where there is a State system of public employment
offices, but where the State has not complied with the provisions of
section 4, in establishing a cooperative Federal and State system of
public employment offices to be maintained by such officer or board
and in such manner as may be agreed upon by and between the
Governor of the State and the Director.
The authority contained in this section shall terminate at the
expiration of the period specified in the first paragraph of this
section, and thereafter no assistance shall be rendered such States
until the legislatures thereof provide for cooperation with the
United States Employment Service as provided in section 4 of this
Act.
SEC 11. (a) The director shall establish a Federal Advisory Council composed of men and women representing employers and employees in equal numbers and the public for the purpose of formulating policies and discussing problems relating to employment and
NATIONAL EMPLOYMENT SERVICE ACT
69
insuring impartiality, neutrality, and freedom from political influence in the solution of such problems. Members of such council
shall be selected from time to time in such manner as the director
shall prescribe and shall serve without compensation, but when
attending meetings of the council they shall be allowed necessary
traveling and subsistence expenses, or per diem allowance in lieu
thereof, within the limitations prescribed by law for civilian employees in the executive branch of the Government. The council
shall have access to all files and records of the United States Employment Service. The director shall also require the organization
of. similar State advisory councils composed of men and women
representing employers arid employees in equal nuiribers and the
public.
(b) In carrying out the provisions of this Act the director is
authorized and directed to provide for the giving of notice of strikes
or lockouts to applicants before they are referred to employment.
SEC. 12. The director, with the approval of the Secretary of
Labor, is hereby authorized to make such rules and regulations as
may be necessary to carry out the provisions of this Act.
SEC. 13. The Postmaster General is hereby authorized and
directed to extend to the United States Employment Service and to
the system of employment offices operated by it in conformity \vith
the provisions of this Act, and to all State employment systems
which receive funds appropriated under authority of this Act, the
privilege of free transmission of official mail matter.
Approved, June 6, 1933.
B. SUMMARY
OF OTHER
MEASURES
RECOVERY
The foregoing section gives the texts of the outstanding
Recovery measures bearing directly upon questions of industry and
labour. There are, however, a number of other measures forming
part of the Recovery programme which, while having a less direct
bearing upon industrial and labour conditions than the Acts reproduced above, are nevertheless of great importance in the financial
and economic situation. It is proposed to make a very brief
summary of these measures with the object of enabling the Recovery
programme to be conceived as a whole. Needless to say, such a
summary must necessarily be very general and is not to be considered as constituting in any sense an interpretation of the Acts
in question.
The Recovery measures summarised here are as follows:
Economy Act.
Independent Offices Appropriation Act, 1934.
Act amending the National Prohibition Act.
Emergency Banking Act.
Banking Act of 1933.
Securities Act of 1933.
Act relating to the Reconstruction Finance Corporation.
Resolution repealing the Gold Clause.
Farm Credit Act of 1933.
Home Owners' Loan Act of 1933.
Emergency Railroad Transportation Act, Title II.
Tennessee Valley Authority Act.
Of these Acts, the first three are chiefly important in the present
context by reason of their effect upon the budgetary and tax
situation. The Economy Act, which has as its declared object
" to maintain the credit of the United States Government ", deals
first of all with the question of payments to war veterans. Such
payments are limited, with few exceptions, to persons disabled as
OTHER RECOVERY MEASURES
71
a result of disease or injury incurred or aggravated on active
service (whereas an allowance had formerly been granted to
veterans whose disabilities were not due to military service), and
powers are given permitting general reductions in the amount of
these payments. The Independent Offices Appropriation Act, 1934,
provides that such reductions shall not exceed 25 per cent.
The second part of the Economy Act deals with United States
Government officers and employees. It makes provision for a reduction in the salaries of such officers and employees to an amount not
exceeding 15 per cent., the reduction in question to be based upon
the decline in the cost of living. It also reduces the salaries of
Congressmen by 15 per cent. The third part of this Act makes
provision for further economies by the reorganisation of executive
departments.
The object of the Act amending the National Prohibition Act is
given as " to provide revenue by the taxation of certain nonintoxicating liquor and for other purposes ". It permits the man ufacture and sale of beverages containing not more than 3.2 per cent.
of alcohol by weight, such beverages to be taxed at the rate of
§5 per barrel of 31 gallons.
The next large group of Acts deals with banking and financial
measures. The Emergency Banking Act gives the President power
in any period of national emergency to regulate transactions in
foreign exchange, transactions between banks, and the export
or hoarding of gold or silver bullion or currency. Title II of this
Act, known as the Bank Conservation Act, empowers the Comptroller
of the Currency to take over a bank and make any necessary
reorganisation and liquidation. Title III permits of the issue of
preferred stock by any national banking association for the purpose
of obtaining funds, which stock may be subscribed by the Reconstruction Finance Corporation. Title IV makes provisions for the
issue of treasury notes to banks against certain eligible assets.
The Banking Act of 1933 is designed to " provide for the safer
and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes ". Among other important
provisions, it widens the membership of the Federal Reserve
System by admitting mutual savings banks; prohibits (with
certain exceptions) the payment of interest on demand deposits;
provides for the regulation of interest rates on time deposits;
separates commercial banks and affiliated houses doing security
72
OTHER RECOVERY MEASURES
business; and creates a Federal Deposit Insurance Corporation to
guarantee bank deposits.
The Securities Act of 1933 aims at providing " full and fair
disclosure of the character of securities sold in interstate and
foreign commerce and through the mails, and to prevent frauds
in the sale thereof ". It places restrictions upon the use of the
mails for selling or delivering securities, makes provision for the
furnishing of detailed information concerning new security issues
and foreign securities, and sets up a corporation to safeguard the
interests of foreign security-holders.
The Act relating to the Reconstruction Finance Corporation
authorises the Corporation " to subscribe for preferred stock and
purchase the capital notes of insurance companies ". It also lays
down that the Corporation shall not make, renew or extend any
loan to any company paying excessive compensation to any of
its officers or employées.
The purpose of the Resolution repealing the Gold Clause is given
as " to assure uniform value to the coins and currencies of the
United States ". It lays down that " every provision contained
in or made with respect to any obligation which purports to give
the obligee a right to require payment in gold or a particular
kind of coin or currency, or in an amount in money of the United
States measured thereby, is declared to be against public policy;
. . . Every obligation, heretofore or hereafter incurred, whether
ór not any such provision is contained therein or made with
respect thereto, snail ï>e discharged upon payment, dollar for
dollar', in any coin or currency which at the 'time of payment is
legal tender for "public a'n'd 'private debts ".
The 'Farm Credit Act of 19$3 is designed primarily " to 'provide
for organisations within the Farm Credit Administration to make
loan's for the 'production and marketing of agricultural products ".
ft makes provision fòV a revolving fund of $120 million, to be
obtained in pa'rt from "the "Reconstruction Finance Corporation,
and establishes twelve Production 'Credit Co-operatives, a Central
Bláhk fó'r Co-operatives aid 'twelve Banks for Co-operátives, all
designed 'to furnish credit 'facilities for farmers.
Th'é tío'me Owners' xLoan Act of 1933 has among its chief aims
" t ó ¿Vovide e'mergency reïie'f with respect to home mortgage
mdeitedn'ess, tó refinance borile 'mortgages, to extend relief to the
owners of nò'm'éfs occupied By 'them and who are Unable to amortise
thei'r 'debt "eïsêwh'eVe ". À ffomè Owhè'rs' Loan Corporation is set
up Wítn capital 'hc-'t excee'd'in'g $200 nifllion, to Be obtained from
OTHER RECOVERY MEASURES
73
funds provided by the Reconstruction Finance Corporation. This
Home Owners' Loan Corporation is authorised to issue bonds up
to $2,000 million, which may be exchanged for home mortgages or
sold to obtain cash with which to buy mortgages. Home owners
are required to make regular payments so as to reimburse principal
and interest within fifteen years.
The two remaining measures—the Emergency Railroad Transportation Act, Title II, and the Tennessee Valley Authority Act—
fall into no particular category. The Emergency Railroad Transportation Act, Title II (Title I of this Act is reproduced textually
above), amends the Interstate Commerce Act, and in particular
re-defines certain of the powers of the Interstate Commerce
Commission.
The Tennessee Valley Authority Act is described in the official
summary as : " to improve the navigability and to provide for the
flood control of the Tennessee River; to provide for re-forestation
and the proper use of marginal iands in the Tennessee Valley;
to provide for the agricultural and industrial development of said
valley; to provide for the national defence by the creation of a
corporation for the operation of Government properties at and
near Muscle Shoals in the State of Alabama ". • Among other
things, it authorises the Authority to engage in the manufacture
and sale of fixed nitrogen and fertilisers.
PART II
INDUSTRIAL GODES
A.
TEXTS
OF CODES
PRESIDENT'S REEMPLOYMENT
AGREEMENT »
Approved by President Roosevelt on July 20, 1933
To every employer:
1. This agreement is part of a nation-wide plan to raise wages,
create employment and thus increase purchasing power and
restore business. That plan depends wholly on united action by
all employers. For this reason I ask you, as an employer, to do your
part by signing.
2. If it turns out that the general agreement bears unfairly
on any group of employers, they can have that straightened out
by presenting their proposed Code of Fair Competition.
FRANKLIN D. ROOSEVELT.
President's Reemployment Agreement (Authorised by Section 4 (a,)
National Industrial Recovery Act)
During the period of the President's emergency reemployment
drive—that is to say, from August 1 to December 31, 1933, or to
any earlier date of approval of a Code of Fair Competition to which
he is subject—the undersigned hereby agrees with the President
as follows:
(1) After August 31, 1933, not to employ any person under 16
years of age, except that persons between 14 and 16 may be employed (but not in manufacturing or mechanical industries) for not
to exceed three hours per day, and those hours between 7 a.m. and
7 p.m., in such work as will not interfere with hours of day school.
(2) Not to work any accounting, clerical, banking, office, service
or sales employees (except outside salesmen) in any store, office,
department, establishment or public utility, or on any automotive
or horse-drawn passenger, express, delivery or freight service, or
in any other place or manner, for more than forty hours in any one
week and not to reduce the hours of any store or service operation
to below fifty-two hours in any one week, unless such hours were
i The so-called " Blanket Code ".
78
TEXTS OF CODES
less than fifty-two hours per week before July 1, 1933, and in the
latter case not to reduce such hours at all.
(3) Not to employ any factory or mechanical worker or artisan
more than a maximum week of thirty-five hours until December 31,
1933, but with the right to work a maximum week of forty hours
for any six weeks within this period ; and not to employ any worker
more than eight hours in any one ¿ay.
(4) The maximum hours fixed in the foregoing paragraphs (2)
and (3) shall not apply to employees in establishments employing
not more than two persons in towns of less than 2,500 population,
which towns are not part of a larger trade area; nor to registered
pharmacists or other professional persons employed in their profession; nor to employees in a managerial or executive capacity,
who now receive more than $35 per week; nor to employees on
emergency maintenance and repair work; nor to very special cases
where restrictions of hours of highly skilled workers on continuous
processes would unavoidably reduce production; but, in any such
special case, at least time and one-third shall be paid for hours
worked in excess of the maximum. Population for the purposes
of this agreement shall be determined by reference to the 1930
Federal census.
(5) Not to pay any of the classes of employees mentioned in
paragraph (2) less than $15 per week in any city of over 500,000
population or in the immediate trade area of such city; nor less
than $14.50 per week in any city of between 250,000 and 500,000
population, or in the immediate trade area of such city; nor less
than $14 per week in any city of between 2,500 and 250,000 population or in the immediate trade area of such city; and in towns of
less than 2,500 population to increase all wages by not less than
20 percent., provided that this shall not require wages in excess of
$12 per week.
(6) Not to pay any employee of the classes mentioned in paragraph (3) less than 40 cents per hour unless the hourly rate for the
same class of work on July 15, 1929, was less than 40 cents per
hour, in which latter case not to pay less than the hourly rate on
July 15, 1929, and in no event less than 30 cents per hour. It is
agreed that this paragraph establishes a guaranteed minimum rate
of pay regardless of whether the employee is compensated on the
basis of a time rate or on a piece-work performance.
(7) Not to reduce the compensation for employment now in
excess of the minimum wages hereby agreed to (notwithstanding
that the hours worked in such employment may be hereby reduced)
and to increase the pay for such employment by an equitable
readjustment of all pay schedules.
(8) Not to use any subterfuge to frustrate the spirit and intent
of this agreement, which is, among other things, to increase employment by a universal covenant, to remove obstructions to commerce,
and to shorten hours and to raise wages for the shorter week to a
living wage basis.
PRESIDENT'S REEMPLOYMENT AGREEMENT
79
(9) Not to increase the price of any merchandise sold after the
date hereof over the price on July 1, 1933, by more than is made
necessary by actual increases in production, replacement, or invoice
costs of merchandise since July 1, 1933, or by taxes or other costs
resulting from action taken pursuant to the Agricultural Adjustment Act, and, in setting such price increases, to give full weight
to probable increases in sales volume and to refrain from taking
profiteering advantage of the consuming public.
(10) To support and patronize establishments which also have
signed this agreement and are listed as members of the N.R.A.
(National Recovery Administration).
(11) To co-operate to the fullest extent in having a Code of Fair
Competition submitted by his industry at the earliest possible date
and in any event before September 1, 1933.
(12) Where, before June 16,1933, the undersigned had contracted to purchase goods at a fixed price for delivery during the period
of this agreement, the undersigned will make an appropriate
adjustment of said fixed price to meet any increase in cost caused
by the seller having signed this President's Reemployment Agreement or having become bound by any Code of Fair Competition
approved by the President.
(13) This agreement shall cease upon approval by the President
of a Code to which the undersigned is subject; or, if the N.R.A. so
elects, upon submission of a Code to which the undersigned is
subject and substitution of any of its provisions for any of the terms
of this agreement.
(14) It is agreed t h a t any person who wishes to do his part in
the President's re-employment drive by signing this agreement but
who asserts t h a t some particular provision hereof, because of
peculiar circumstances, will create great and unavoidable hardship,
may obtain the benefits hereof by signing this agreement and putting
it into effect and then, in a petition approved by a representative
trade association of his industry, or other representative organization designated by N.R.A., may apply for a stay of such provision
pending a summary investigation by N.R.A., if he agrees in such
application to abide by the decision of such investigation. This
agreement is entered into pursuant to Section 4 (a) of the National
Industrial Recovery Act and subject to all the terms and conditions
required by Sections 7 (a) and 10 (b) of that Act.
Interpretations of President's Reemployment Agreement 1
The President's Reemployment Agreement was written in
language intended to be flexible to meet many varieties of condi1
The following interpretations are taken from NATIONAL INDUSTRIAL
Press Releases, Nos. 124, 140 and 147, of
28 and 31 July 1933. Certain additional interpretations have since been
made, but the official texts of them are not available at the time of going
to press.
RECOVERY ADMINISTRATION:
80
TEXTS OF CODES
tions. As a result, interpretations will be required from time
to time as uncertainties in the application of the agreement
develop.
INTERPRETATION N O .
1
(Concerning Paragraph 7)
Paragraph 7 means, first, that compensation of employees above the minimum
wage group (whether now fixed by the hour, day, week, or otherwise) shall
not be reduced, either to compensate the employer for increases that he may
be required to make in the minimum wage group in order to comply with the
agreement, or to turn this Reemployment Agreement into a mere share-thework movement without a resulting increase of total purchasing power. This
first provision of paragraph 7 is a general statement of what shall not be done.
The rest of paragraph 7 is a particular statement of what shall be done,
which is that rates of pay for employees above the minimum wage group
shall be increased by " equitable readjustments ". No hard and fast rule can
be laid down for such readjustments, because the variations in rates of pay
and hours of work would make the application of any formula unjust in thousands of cases. We present, however, the following examples of the need for
and methods of such readjustments:
Example 1. Employees now working forty hours per week in factories.
When hours are reduced to thirty-five, the present rate per hour if increased
one-seventh would provide the same compensation for a normal week's work
as before.
Example 2. Employees now working sixty hours per week in factories.
When hours are reduced to thirty-five, a rate per hour if increased one-seventh
might be insufficient to provide proper compensation. But, to increase the
rate by five-sevenths, in order to provide the same compensation for thirty-five
hours as previously earned in sixty, might impose an inequitable burden on
the employer. The sixty-hour week might have been in effect because of a
rush of business, although a forty-hour week might have been normal practice
at the same hourly wage. Seasonal or temporary increases in hours now in
effect, or recent increases in wages, are. proper factors to be taken into
consideration in making equitable readjustments.
The policy governing the readjustment of wages of all employees in what
may be termed the higher wage groups requires, not a fixed rule, but " equitable
readjustment " in view of long standing differentials in pay schedules; with
due regard for the fact that payrolls are being heavily increased, and that
employees will receive benefits from shorter hours, from the reemployment
of other workers, and from stabilized employment which may increase their
yearly earnings.
The foregoing examples indicate the necessity of dealing with this problem
of "equitable readjustment " of the higher rates of pay, on the basis of consideration of the varying circumstances and conditions of the thousands of enterprises and employments involved. Any attempt to define a national standard
would be productive of widespread injustice. The National Recovery Administration will, through local agencies, observe carefully the manner in which
employers comply with their agreement to make " equitable readjustments ",
and will take from to time and announce from Washington such action as may
be necessary to correct clear cases of unfairness and to aid conscientious
employers in carrying out in good faith the terms of the agreement.
When an employer signs an agreement and certifies his compliance and also
joins in the submission of a Code of Fair Competition before September 1, 1933,
his determination of what are " equitable readjustments " should be accepted,
at least prior to September 1, as a prima facie compliance with his agreement,
pending action by N.R.A. upon the Code submitted, or any other action
by N.R.A. taken to insure proper interpretations or applications of agreements.
This will afford N.R.A. an opportunity to survey the general results of the
Reemployment Program and to iron out difficulties and misunderstandings
over agreements that are of a substantial character.
PRESIDENT'S
REEMPLOYMENT
INTERPRETATION No.
AGREEMENT
81
2
(Concerning Paragraph 14)
A person who believes that some particular provision in the agreement,
because of peculiar circumstances, will create great and unavoidable hardship
should prepare a petition to N.R.A. asking for a stay of this provision as to
him. He should then submit this petition to the trade association of his
industry, or, if there is none, to the local Chamber of Commerce, or similar
representative organization designated by N.R.A., for its approval. The
written approval of the trade association, or such other organization, will be
accepted by N.R.A. as the basis for a temporary stay, without further investigation, pending decision by N.R.A. The petition must contain a promise to
abide by N.R.A.'s decision, so that if N.R.A. decides against the petitioner, he
must give effect to the provision which was stayed, from the date of the decision
of N.R.A.
The petition and approval of the trade association or other organization,
as prescribed above, should be forwarded to N.R.A. in Washington; and the
employer's signed copy of the President's Reemployment Agreement should
be sent to the District Office of the Department of Commerce. After complying
with these requirements the employer will be entitled to receive and display
the Blue Eagle by delivering his certificate of compliance to his Post Office.
Paragraph 14 is not intended to provide for group exceptions, but only to
meet cases of individual hardship.
INTERPRETATION No.
3
(Concerning Date of Compliance)
It is expected that all employers desiring to cooperate with the President's
recovery program will sign the agreements promptly and mail them in. It is
recognized, however, that it will be physically impossible in many instances
to adjust employment conditions and to hire the necessary additional personnel
in order to comply with the agreement on August 1. For that reason,
provision had been made for issuing the Blue Eagle only upon the filing of a
certificate of compliance. It should be possible in most cases to make the
necessary adjustments and file a certificate of compliance within the first week
of August, and such action, taken as promptly as possible, will be regarded
as carrying out the agreement in good faith.
INTERPRETATION NO. 4
(Concerning Paragraph 13)
All employers are expected to sign the agreement, whether Codes have
been submitted to N.R.A. or not (unless such Codes have already been
approved) ; but after the President has approved a Code, or after N.R.A. has
approved of the substitution of the provisions of a Code for agreements in the
trade or industry covered, conformity with the Code provisions by an employer
will be regarded as compliance with his individual agreement.
INTERPRETATION No. 5
(Concerning Paragraph 9)
Where the July 1, 1933, price was a distress price, the employer signing the
agreement may take his cost price on that date as the base for such increase
in selling price as is permitted by paragraph 9.
INTERPRETATION No.
6
(Concerning Employments Covered by the Agreement)
The following groups of employment are not intended to be covered by the
President's Reemployment Agreement:
1. Professional occupations.
6
82
TEXTS OF CODES
2. Employees of Federal,. State and local governments and other public
institutions and agencies.
3. Agricultural labor.
4. Domestic servants.
5. Persons buying goods and selling them independently or persons selling
solely on commission, provided, however, that persons regularly employed to
sell on commission, with a base salary or guaranteed compensation, come
within the requirements of the agreement.
INTERPRETATION N O . 7
(Concerning Paragraph 4)
TIME AND A THIRD FOR HOURS WORKED IN EXCESS OF THE MAXIMUM
EMPLOYEES ON EMERGENCY MAINTENANCE AND REPAIR WORK
BY
Hours worked in excess of the maximum by employees on emergency
maintenance or repair work shall be paid at the rate of time and one-third.
INTERPRETATION No.
8
(Concerning Paragraph 2)
SEASONAL REDUCTION OF HOURS OF OPERATION
The hours of any store or service operation may be reduced below the
minimum specified in paragraph 2, if the reduction is in accordance with a
practice of seasonal reduction of hours and does not result in reduction of the
weekly pay of employees.
INTERPRETATION NO. 9
(Concerning the Minimum Wage for Apprentices)
The minimum wage provisions of the agreement do not apply to apprentices
if under contract with the employer on August 1, 1933, but no one shall be
considered an apprentice within the meaning of this Interpretation who has
previously completed an apprenticeship in the industry.
INTERPRETATION NO.
10
(Concerning the Minimum Wage for Part Time Workers)
The minimum wage for a part time worker in an employment described in
paragraph 2 of the agreement is a wage such that if the employee worked
at that wage for a full week of 40 hours he would receive the minimum weekly
wage prescribed for him by the agreement. The minimum wage for a part
time worker in an employment described in paragraph 3 of the agreement
is the minimum wage per hour prescribed by paragraph 6 of the agreement.
INTERPRETATION NO.
11
(Concerning Maximum Hours of Store Operation)
The agreement imposes no limitation on the maximum hours of operation
of a store or service.
INTERPRETATION No.
12
(Concerning Employments Included in paragraph 2)
The following are among the employments included in Paragraph 2:
Beauty parlor operators
Elevator operators
Restaurant workers
Barbers
Drivers
Janitors
Dish washers
Delivery men
Watchmen
Porters
Filling station
operators
PRESIDENT'S REEMPLOYMENT AGREEMENT
INTERPRETATION No.
83
13
(Concerning Paragraph 5)
" Immediate trade area " is the area in which there is direct retail competition. In case of question, the decision shall be made by the local Chamber
of Commerce or similar organization subject to review by the State Recovery
Board.
INTERPRETATION No.
14
(Concerning Owners of Stores Without Employees)
Owners operating their own establishments without any employees may
obtain the insignia of N.R.A. by signing the agreement and a certificate of
compliance.
INTERPRETATION NO. 15
(Concerning Paragraph 4)
The maximum hours fixed in paragraphs 2 and 3 of the agreement do
not apply to an employee receiving more than Ç35 per week and who is acting
primarily, although not wholly, in a managerial or executive capacity.
INTERPRETATION NO. 16
(Concerning Non-Profit Organizations)
Non-profit organizations are considered as employers for the purposes of
the agreement.
INTERPRETATION No.
17
(Concerning Signing of Agreements)
An employer engaged in several different business or employing labor of
several different classes should sign but one agreement.
INTERPRETATION NO. 18 (See also No. 12)
(Concerning Employments Included in Paragraph 2)
The following are among the employments included in paragraph 2:
Maintenance forces (including charwomen, window cleaners, etc.).
INTERPRETATION No.
19
(Concerning Professional Persons)
The following are included among professional persons within the meaning
of paragraph 4:
Newspaper reporters, editorial writers, rewrite men and other
members of editorial staffs.
Internes, nurses, hospital technicians, research technicians.
RETAIL TRADE
Substitute Presidential Reemployment
Agreements
Approved by the National Recovery Administration on July 31, 1933
Retail Dry Goods, Department, Specialty Shop, Mail Order,
Men's Clothing and Furnishings, Furniture, Hardware, and Shoe
Store Trades
A Code has been submitted for the retail dry goods, department, specialty shop, mail order, men's clothing and furnishings,
furniture, hardware, and shoe store trades—and for any other
retail establishments subscribing to this Code, which trade or
industry has requested the substitution of the following paragraphs
of said Code:
3.
Maximum Hours.
(A) On and after the effective date of this Code no individual or organization selling at retail shall work any employee
(except executives whose salaries exceed $35.00 per week, or
registered pharmacists or other professional persons employed
in their profession, or outside salesmen, and except outside
deliverymen and maintenance employees who may be employed
forty-eight hours weekly or more, if paid time and one third
for all hours over forty-eight hours weekly) for more than
forty (40) hours per week, excepting at Christmas, inventory,
and other peak periods employees may work forty-eight (48)
hours per week for a maximum of not to exceed three weeks in
each six months.
(B) And not to reduce the hours of any store or service
operation to below fifty-two (52) hours in any one (1) week,
unless such hours were less than fifty-two (52) hours per week
before July 1, 1933, and in the latter case not to reduce such
hours at all.
(C) The maximum fixed in paragraph 3 (A) shall not apply
to employees in establishments employing not more than two
persons in towns of less than 2,500 population, which towns are
not part of a larger trade area.
RETAIL TRADE
85
4.
Minimum Wage.
On and after the effective date of this Code, retail stores shall
establish minimum weekly rates of wages for the retail trade for a
work week specified in Section 3 (A) as follows :
(A) Within cities of over 500,000 population (by reference
to the 1930 Federal census) or in the immediate trade area of
such cities at the rate of $14.00 per week.
(B) Within cities of from 100,000 to 500,000 population (by
reference to the 1930 Federal census), or in the immediate trade
area of such cities at the rate of $13.50 per week.
(C) Within villages, towns, or cities with a population of
2,500 to 100,000 (by reference to the 1930 Federal census),
unless they are included in a trade area as defined by paragraph
(A) or (B), at the rate of $13.00 per week.
(D) The minimum wages that shall be paid by employers
in the retail trade to any of their employees shall be at the
rate of one (1) dollar per week less in the Southern section of
the trade than the rates specified in paragraphs (A), (B), and
(C) of Section 4.
The South is defined as the following States—Virginia,
West Virginia, North Carolina, South Carolina, Georgia,
Florida, Kentucky. Maryland, District of Columbia, Tennessee,
Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, and
Texas.
(E) In the entire United States, in villages, towns, and
cities under 2,500 population to increase all wages by not less
than 20 percent., provided that this shall not require wages
in excess of $11.00 per week.
Except that on and after the effective date of this Code,
junior employees between the ages of sixteen and eighteen
years, inclusive, with less than six months' experience in any
retail store, shall be paid at the rate of $2.00 less for a work
week as provided in Section 3 (A), and except that apprentice
employees more than eighteen years of age with less than six
(6) months' experience in any retail store shall be paid at the
rate of one (1) dollar less for a work week as provided in
section 3 (A), provided that the minimum shall not be less than
at the rate of $11.00 per week.
for the following paragraphs of the President's Reemployment
Agreement :
" (2) Not to work any accounting, clerical, banking, office,
service or sales employees (except outside salesmen) in any
store, office, department, establishment, or public utility, or
on any automotive or horse-drawn passenger, express, delivery,
or freight service, or in any other place or manner, for more than
40 hours in any 1 week and not to reduce the hours of any store
or service operation to below 52 hours in any 1 week, unless
86
TEXTS OF CODES
such hours were less than 52 hours per week before July 1,
1933, and in the latter case not to reduce such hours at all.
" (4) The maximum hours fixed in the foregoing paragraphs
(2) and (3) shall not apply to employees in establishments
employing not more than two persons in towns of less than
2,500 population, which towns are not part of a larger trade
area; nor to registered pharmacists or other professional
persons employed in their profession; nor to employees in a
managerial or executive capacity, who now receive more than
$35 per week; nor to employees on emergency maintenance
and repair work; nor to very special cases where restrictions
of hours of highly skilled workers on continuous processes
would unavoidably reduce production, but, in any such special
case, at least time and one third shall be paid for hours worked
in excess of the maximum. Population for the purposes of
this agreement shall be determined by reference to the 1930
Federal census.
" (5) Not to pay any of the classes of employees mentioned
in paragraph (2) less than $15 per week in any city of over
500,000 population, or in the immediate trade area of such
city; nor less than $14.50 per week in any city of between
250,000 and 500,000 population, or in the immediate trade area
of such city; nor less than $14 per week in any city of between
2,500 and 250,000 population or in the immediate trade area
of such city; [and in towns of less than 2,500 population to
increase all wages by not less than 20 percent, provided that
this shall not require wages in excess of $12 per week. "
After consideration, and with the approval of labor advisors and
industrial advisors, as shown hereon, I recommend that N.R.A.
elect to substitute said Code provisions for said provisions of the
P.R.A. and to authorize employers to sign the agreement subject to
such substitution and to signify their compliance with the P.R.A.
by adding to the standard statement of compliance the following
sentence :
"To the extent of N.R.A. consent as announced we have
complied with the President's Agreement by complying with
the substituted provisions of the Code submitted for the retail
dry goods, department, specialty shop, mail order, men's
clothing and furnishings, furniture, hardware, and shoe store
trades—and/or any other retail establishments subscribing to
this Code. "
n.
Food and Grocery Distributing Trade Industry
A Code has been submitted for the food and grocery distributing
rade industry, which trade industry has requested the substitution
cf the following paragraphs of said Code:
RETAIL TRADE
87
ARTICLE I
The term " food and grocery distributors " as used in this Code
shall mean and apply to and include any person, firm, corporation,
partnership, association and any others wholly or partially performing the functions of wholesale and/or retail distribution (except the
farmer as a producer; nor shall it be applicable to strictly manufacturing operations) engaged in the business of assembling, distributing andselling raw and/or prepared foods, and merchandise entering
into or used in connection with or in the keeping, processing or
preparation of the same for use or consumption; and such other
merchandise as is by custom classified and commonly referred to as
part of a grocer's stock.
ARTICLE
III
Section 1. 9U1 employees of food and grocery distributors shall
have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from interference,
restraint or coercion of employers of labor, of their agents in the
designation of such representatives, or in self-organization, or in
other concerted activities for the purpose of collective bargaining,
or other mutual aid or protection.
Section 2. No employees and no one seeking employment in the
food and grocery distributing trade shall be required as a condition
of employment to join any company union or to refrain from joining
a labor organization of his own choosing.
Section 3. All members of the food and grocery distributing
trade shall comply with the maximum hours of labor and minimum
rates of pay herein set forth.
ARTICLE
VI
Section 1. The maximum hours of labor shall be 48 hours per
week and no one shall be employed more than 8 hours in any
24-hour period, excepting on the day preceding a legal holiday and
on an additional 12 days (when the maximum hours in any one day
shall not exceed 10 hours) in any six months period.
Section 2. The minimum hours of any store or service operation
shall be 52 hours per week, providing however that where store or
service operations were less than 52 hours per week before July 1,
1933, this minimum requirement shall not apply nor shall such
hours be reduced.
Section 3. The maximum hours fixed in the foregoing sections
shall not apply to employees in establishments employing not more
than two persons in towns of less than 2,500 population, which
towns are not a part of a larger trade area, nor to employees in
managerial or executive capacity who now receive more than
§35.00 per week, nor to outside salesmen or delivery men, nor to
employees on emergency maintenance and repair work, nor to very
88
TEXTS OF CODES
special cases where restrictions of hours would unavoidably reduce
production; but, in any such special case, at least time and one
third shall be paid for hours worked in excess of the maximum.
Section 4. The minimum wage for all classes of employees shall
be as follows:
(a) Not less than $15 per week in any city of over 500,000
population, or in the immediate trade area thereof,
(b) Nor less than $14.50 per week in any city of between 250,000
and 500,000 population, or in the immediate trade area thereof,
(c) Nor less than $14.00 per week in any city of between 2,500
and 250,000 population, or in the immediate trade area thereof,
(d) Employees with less than six (6) months' experience in this
trade may be paid $1.00 per week less than hereinbefore prescribed.
(e) The minimum wages which shall be paid by employers in this
trade to any employees shall be at the rate of $1.00» per week less
in the Southern section of the trade than the rates specified in
paragraphs (a), (b), and (c) and (d), hereabove.
The South is defined as the following States—Virginia, West
Virginia, North Carolina, South Carolina, Georgia, Kentucky,
Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma,
Texas, Maryland and the District of Columbia.
(/) In towns of less than 2,500 population all wages shall be
increased by not less than 20 percent, provided that this shall not
require wages in excess of $12.00 per week.
(g) Population for the purposes of this Code shall be determined
by reference to the 1930 Federal census.
(h) Not to reduce the compensation for employment now in
excess of the minimum wages hereby agreed to (notwithstanding
that the hours worked in such employment may be hereby reduced)
and to increase the pay for such employment by an equitable
adjustment of all pay schedules.
ARTICLE V
This agreement is in all respects subject to (1) the provisions of the
Agricultural Adjustment Act and (2) the Executive Order dated
June 26, 1933, by which the President delegated to the Secretary
of Agriculture certain of his powers and functions under the
National Industrial Recovery Act.
for the following paragraphs of the President's Reemployment
Agreement :
" (2) Not to work any accounting, clerical, banking,
office, service or sales employees (except outside salesmen) in
any store, office, department, establishment, or public utility,
or on any automotive or horse-drawn passenger, express,
delivery, or freight service, or in any other place or manner,
for more than 40 hours in any 1 week and not to reduce the
hours of any store or service operation to below 52 hours per
RETAIL TRADE
89
week before July 1, 1933, and in the latter case not to reduce
such hours at all.
" (3) Not to employ any factory or mechanical worker or
artisan more than a maximum week of 35 hours until December 31, 1933, but with the right to work a maximum week
of 40 hours for any 6 weeks within this period; and not to
employ any worker more than 8 hours in any 1 day.
" (4) The maximum hours fixed in the foregoing paragraphs
(2) and (3) shall not apply to employees in establishments
employing not more than two persons in towns of less than
2,500 population, which towns are not a part of a larger trade
area; nor to registered pharmacists or other professional
persons employed in their profession; nor to employees in a
managerial or executive capacity, who now receive more than
$35 per week; nor to employees on emergency maintenance
and repair work; nor to very special cases where restrictions
of hours of highly skilled workers on continuous processes
would unavoidably reduce production ; but in any such special
case, at least time and one third shall be paid for hours worked
in excess of the maximum. Population for the purposes of
this agreement shall be determined by reference to the 1930
Federal census.
" (5) Not to pay any of the classes of employees mentioned
in paragraph (2) less than $15 per week in any city of over
500,000 population, or in the immediate trade area of such
city; nor less than $14.50 per week in any city of between
250,000 and 500,000 population, or in the immediate trade area
of such city; nor less than $14.00 per week in any city of
between 2,500 and 250,000 population, or in the immediate
trade area of such city; and in towns of less than 2,500 population to increase all wages by not less than 20 percent., provided
that this shall not require wages in excess of $12.00 per week."
After consideration, and with the approval of labor advisors and
industrial advisors, as shown hereon, I recommend that N.R.A.
elect to substitute said Code provisions for said provisions of the
P.R.A. and to authorize employers to sign the agreement subject
to each substitution and to signify their compliance with the P.R.A.
by adding to the standard statement of compliance the following
sentence :
" To the extent of N.R.A. consent as announced we have
complied with the President's Agreement by complying with
the substituted provisions of the Code submitted for the food
and grocery distributing trade industry. "
COTTON TEXTILE INDUSTRY
EXECUTIVE ORDER
July 9, 1933.
The Cotton Textile Code, a stenographic transcript of the hearing
thereof, a report and recommendations of the National Recovery
Administration thereon (including a special statistical analysis of
the industry by the Division of Planning and Research) and reports
showing unanimous approval of such report and recommendations
by the Labor Advisory Board, the Industrial Advisory Board,
and the Consumers' Advisory Board, having been submitted to the
President, the following are his orders thereon.
In accordance with Section 3 (a), National Industrial Recovery
Act, the Cotton Textile Code submitted by duly qualified trade
associations of the Cotton Textile Industry on June 16, 1933, in
full compliance with all pertinent provisions of that Act, is hereby
approved by the President subject to the following interpretations
and conditions:
(1) Limitations on the use of productive machinery shall not
apply to production of tire yarns or fabrics for rubber tires for a
period of three weeks after this date.
(2) The Planning Committee of the Industry, provided for in
the Code, will take up at once the question of employee purchase
of homes in mill-villages, expecially in the South, and will submit
to the Administration before January 1, 1934, a plan looking
toward eventual employee home-ownership.
(3) Approval of the minimum wages proposed by the Code is not
to be regarded as approval of their economic sufficiency but is
granted in the belief that, in view of the large increase in wage
payments provided by the Code, any higher minima at this time
might react to reduce consumption and employment, and on the
understanding that if and as conditions improve the subject may
be reopened with a view to increasing them.
(4) That office employees be included within the benefits of the
Code.
(5) The existing amounts by which wages in the higher-paid
classes, up to workers receiving $30 per week, exceed wages in the
lowest paid class shall be maintained.
(6) While the exception of repair shop crews, engineers, electricians and watching crews from the maximum hour provisions is
COTTON TEXTILE INDUSTRY
91
approved, it is on the condition that time and one-half be paid
for overtime.
(7) While the exception of cleaners and outside workers is
approved for the present, it is on condition that the Planning and
Supervisory Committee provided by Section VI prepare and submit
to the Administration, by January 1, 1934, a schedule of minimum
wages and of maximum hours for these classes.
(8) It is interpreted that the provisions for maximum hours
establish a maximum of hours of labor per week for every employee
covered, so that under no circumstances will such an employee be
employed or permitted to work for one or more employers in the
industry in the aggregate in excess of the prescribed number of
hours in a single week.
(9) It is interpreted that the provisions for a minimum wage in
this Code establish a guaranteed minimum rate of pay per hour of
employment regardless of whether the employee's compensation is
otherwise based on a time rate or upon a piece work performance.
This is to avoid frustration of the purpose of the Code by changing
from hour to piece-work rules.
(10) Until adoption of further provisions of this Code necessary
to prevent any improper speeding up of work to the disadvantage of
employees (" stretch-outs ") and in a manner destructive of the
purposes of the National Industrial Recovery Act, it is required
that any and all increases in the amount of work or production
required of employees over that required on July 1, 1933, must be
submitted to and approved by the agency created by Section VI
of the Code and by the Administration and if not so submitted such
increases will be regarded as a prima facie violation of the provision
for minimum wages.
(11) The Code will be in operation as to the whole industry, but
opportunity shall be given for administrative consideration of every
application of the Code in particular instances to any person directly
affected who has not in person or by a representative consented and
agreed to the terms of the Code. Any such person shall be given
an opportunity for a hearing before the Administrator or his
representative, and for a stay of the application to him of any
provision of the Code, prior to incurring any liability to the enforcement of the Code against him by any of the means provided in the
National Industrial Recovery Act, pending such hearing. At such
hearing any objection to the application of the Code in the specific
circumstances may be presented and will be heard.
(12) This approval is limited to a four months' period with the
right to ask for a modification at any time and subject to a request
for renewal for another four months at any time before its expiration.
(13) Section VI of the Code is approved on condition that the
Administration be permitted to name three members of the Planning
and Supervisory Committee of the industry. Such members shall
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TEXTS OF CODES
have no vote but in all other respects shall be members of such
Planning and Supervisory Committee.
FRANKLIN D. ROOSEVELT.
Code of Fair Competition for the Cotton Textile Industry,
as Approved by President Roosevelt, Subject to the Provisions
of the Foregoing Executive Order
To effectuate the policy of Title I of the National Industrial
Recovery Act, during the period of the emergency, by reducing
and relieving unemployment, improving the standards of labor,
eliminating competitive practices destructive of the interests of
the public, employees, and employers, relieving the disastrous
effects of overcapacity, and otherwise rehabilitating the cotton
textile industry and by increasing the consumption of industrial
and agricultural products by increasing purchasing power, and in
other respects, the following provisions are established as a Code
of Fair Competition for the cotton textile industry:
I. Definitions.—The term " cotton textile industry " as used
herein is defined to mean the manufacture of cotton yarn and/or
cotton woven fabrics, whether as a final process or as a part of
a larger or further process. The term " employees " as used
herein shall include all persons employed in the conduct of such
operations. The term " productive machinery " as used herein
is defined to mean spinning spindles and/or looms. The term
" effective date " as used herein is defined to be July 17, 1933,
or if this Code shall not have been approved by the President
two weeks prior thereto, then the second Monday after such
approval. The term " persons " shall include natural persons,
partnerships, associations, and corporations.
II. On and after the effective date, the minimum wage that shall
be paid by employers in the cotton textile industry to any of their
employees—except learners during a six-weeks' apprenticeship,
cleaners, and outside employees—shall be at the rate of $12 per
week when employed in the Southern section of the industry and
at the rate of $13 per week when employed in the Northern section
for 40 hours of labor.
III. On and after the effective date, employers in the cotton
textile industry shall not operate on a schedule of hours of labor
for their employees—except repair shop crews, engineers, electricians, firemen, office and supervisory staff, shipping, watching
and outside crews, and cleaners—in excess of 40 hours per week
and they shall not operate productive machinery in the cotton
textile industry for more than 2 shifts of 40 hours each per week.
IV. On and after the effective date, employers in the cotton
textile industry shall not employ any minor under the age of 16
years.
COTTON TEXTILE INDUSTRY
93
V. With a view to keeping the President informed as to the
observance or nonobservance of this Code of Fair Competition,
and as to whether the cotton textile industry is taking appropriate
steps to effectuate the declared policy of the National Industrial
Recovery Act, each person engaged in the cotton textile industry
will furnish duly certified reports in substance as follows and in
such form as may hereafter be provided:
(a) Wages and hours of labor.—Returns every four weeks showing
actual hours worked by the various occupational groups of employees and minimum weekly rates of wage.
(b) Machinery data.—In the case of mills having no looms,
returns should be made every four weeks showing the number of
spinning spindles in place, the number of spinning spindles actually
operating each week, the number of shifts, and the total number
of spindle hours each week. In the case of mills having no spinning
spindles, returns every four weeks showing the number of looms
in place, the number of looms actually operated each week, the
number of shifts and the total number of loom hours each week.
In the case of mills that have spinning spindles and looms, returns
every four weeks showing the number of spinning spindles and
looms in place, the number of spinning spindles and looms actually
operated each week, the number of shifts, and the total number of
spindle hours and loom hours each week.
(c) Reports of production, stocks, and orders.—Weekly returns
showing Production in terms of the commonly used unit, i.e. linear
yards, or pounds or pieces; stocks on hand both sold and unsold
stated in the same terms and Unfilled Orders stated also in the
same terms. These returns are to be confined to staple constructions
and broad divisions of cotton textiles. The Cotton-Textile Institute,
Inc., 320 Broadway, New York City, is constituted the agency to
collect and receive such reports.
VI. To further effectuate the policies of the Act, the Cotton
Textile Industry Committee, the applicants herein, or such successor
committee or committees as may hereafter be constituted by the
action of the Cotton-Textile Institute, the American Cotton Manufacturers' Association, and the National Association of Cotton
Manufacturers, is set up to cooperate with the Administrator as a
planning and fair-practice agency for the cotton textile industry.
Such agency may from time to time present to the Administrator
recommendations based on conditions in the industry as they may
develop from time to time which will tend to effectuate the operation of the provisions of this Code and the policy of the National
Industrial Recovery Act, and in particular along the following
lines:
1. Recommendations as to the requirements by the Administrator
of such further reports from persons engaged in the cotton textile
industry of statistical information and keeping of uniform accounts
as may be required to secure the proper observance of the Code and
promote the proper balancing of production and consumption and
the stabilization of the industry and employment.
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TEXTS OF CODES
2. Recommendations for the setting up of a service bureau for
engineering, accounting, credit, and other purposes to aid the
smaller mills in meeting the conditions of the emergency and the
requirements of this Code.
3. Recommendations (1) for the requirement by the Administrator
of registration by persons engaged in the cotton textile industry
of their productive machinery, (2) for the requirement by the
Administrator that prior to the installation of additional productive
machinery by persons engaged or engaging in the cotton textile
industry, except for the replacement of a similar number of existing
looms or spindles or to bring the operation of existing productive
machinery into balance, such persons shall secure certificates that
such installation will be consistent with effectuating the policy of
the National Industrial Recovery Act during the period of the
emergency, and (3) for the granting or withholding by the Administrator of such certificates if so required by him.
4. Recommendations for changes in, or exemptions from, the
provisions of this Code as to the working hours of machinery which
will tend to preserve a balance of productive activity with consumption requirements, so that the interests of the industry and the
public may be properly served.
5. Recommendations for the making of requirements by the
Administrator as to practices by persons engaged in the cotton
textile industry as to methods and conditions of trading, the naming
and reporting of prices which may be appropriate to avoid discrimination, to promote the stabilization of the industry, to prevent and
eliminate unfair and destructive competitive prices and practices.
6. Recommendations for regulating the disposal of distress merchandise in a way to secure the protection of the owners and to
promote sound and stable conditions in the industry.
7. Recommendations as to the making available to the suppliers
of credit to those engaged in the industry of information regarding
terms of, and actual functioning of any or all of the provisions of
the Code, the conditions of the industry and regardingthe operations
of any and all of the members of the industry covered by such Code
to the end that during the period of emergency available credit may
be adapted to the needs of such industry considered as a whole
and to the needs of the small as well as to the large units.
8. Recommendations for dealing with any inequalities that may
otherwise arise to endanger the stability of the industry and of
production and employment.
Such recommendations, when approved by the Administrator,
shall have the same force and effect as any other provisions of
this Code.
Such agency is also set up to cooperate with the Administrator in
making investigations as to the functioning and observance of any
of the provisions of this Code, at its own instance or on complaint
by any person affected, and to report the same to the Administrator.
COTTON TEXTILE INDUSTRY
95
Such agency is also set up for the purpose of investigating and
informing the Administrator on behalf of the Cotton Textile Industry as to the importation of competitive articles into the United
States in substantial quantities or increasing ratio to domestic
production on such terms or under such conditions as to render
ineffective or seriously to endanger the maintenance of this Code
and as an agency for making complaint to the President on behalf
of the Cotton Textile Industry, under the provisions of the National
Industrial Recovery Act, with respect thereto.
VII. Where the costs of executing contracts entered into in the
Cotton Textile Industry prior to the presentation to Congress of the
National Industrial Recovery Act are increased by the application
of the provisions of that Act to the industry, it is equitable and
promotive of the purposes of the Act that appropriate adjustments
of such contracts to reflect such increased costs be arrived at by
arbitral proceedings or otherwise, and the Cotton Textile Industry
Committee, the applicant for this Code, is constituted an agency
to assist in effecting such adjustments.
VIII. Employers in the Cotton Textile Industry shall comply with
the requirements of the National Industrial Recovery Act as follows :
" (1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection ; (2) that no
employee and no one seeking employment shall be required as a
condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing; and (3) that employers shall comply with the maximum
hours of labor, minimum rates of pay, and other conditions of
employment, approved or prescribed by the President."
IX. This Code and all the provisions thereof are expressly made
subject t© the right of the President, in accordance with the provision of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under Title I of said Act, and specifically
to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
X. Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code or
additional Codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act consistent
with the provisions hereof.
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TEXTS OF CODES
Executive Orders applying Provisions of the Cotton Textile Code to
Other Industries
EXECUTIVE ORDER, JULY 15,
1933
In supplement to an application filed for approval of a Code of
Fair Competition for the Throwing Industry, the applicants have
requested immediate approval of certain provisions of said Code,
with amendments thereto, and after due consideration, acting under
the provisions of the National Industrial Recovery Act, I agree with
the applicants who have filed said Code for the Throwing Industry
that the provisions of Sections III, IV, V, IX which, as amended,
are identical with corresponding provisions in the Cotton Textile
Code, approved by me July 9, 1933, should be made effective as
amended on July 17, 1933, which is the effective date of the Cotton
Textile Code, and I therefore hereby approve of said provisions of
said Code for the Throwing Industry, as amended, subject to the
interpretations and conditions imposed by me on my approval of
the corresponding provisions of said Cotton Textile Code and subject
further to such revisions or modifications as I may find proper after
a hearing has been held on such Code of Fair Competition for the
Throwing Industry, now set for July 25, 1933.
EXECUTIVE ORDER, JULY 15,
1933
In supplement to an application filed for approval of a Code of
Fair Competition for the Cotton Thread Industry, the applicants
have requested immediate approval of certain provisions, and after
due consideration, acting under the provisions of the National
Industrial Recovery Act, I agree with the applicants who have filed
said Code for the Cotton Thread Industry that the provisions of
Title 2, paragraphs 5 and 6, and the provisions of Title 3, paragraphs
4 and 5, which are identical with corresponding provisions in the
Cotton Textile Code, approved by me July 9, 1933, should be made
effective on July 17, 1933, which is the effective date of the Cotton
Textile Code, and I therefore hereby approve of said provisions of
said Code for the Cotton Thread Industry subject to the interpretations and conditions imposed by me on my approval of the corresponding provisions of said Cotton Textile Code and subject further
to such revisions or modifications as I may find proper after a
hearing has been held on said Code of Fair Competition for the
Cotton Thread Industry.
EXECUTIVE ORDER, JULY 15,
1933
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, and pending
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COTTON TEXTILE INDUSTRY
action upon a Code of Fair Competition to be presented by the
Silk Association of America,
I agree with the Committee representing the Broad Silk and
Rayon Weavers Division, the Converters Division, the Special
Fabrics Division, the Ribbon Division, and the Woven Label
Division, of the Silk Association of America, that they shall be
bound beginning July 17 by the provisions of the Cotton Textile
Industry Code as set forth in the telegram, dated July 14, offering
this agreement to the President of the United States, pursuant to.
Section 4 of the National Recovery Act, which telegram is signed
by Henry E. Stehli, James C. Black, Paul C. Debry, Sol C. Moss,
Ramsay Peugnet, George G. Sommaripa, and addressed to Mr.
Nelson Slater, Deputy Administrator, Department of Commerce,
Washington, D.C., with the express understanding t h a t this agreement is subject to cancellation at any time without notice.
EXECUTIVE ORDER, JULY 15,
1933
A Code of Fair Competition for the Cotton Textile Industry has
been heretofore approved by Order of the President dated July 9,
1933, on certain conditions set forth in such order. The applicants
for said Code have now requested the withdrawal of condition 12 of
said order providing for the termination of approval at the end of
four months unless expressly renewed, have accepted certain other
conditions, have proposed amendments to the Code to effectuate the
intent of the remaining conditions, and have requested t h a t final
approval be given to the Code as so amended and on such conditions.
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, on the report
and recommendation of the Administrator and on consideration,
It is ordered t h a t the condition heretofore imposed as to the termination of approval of the Code is now withdrawn and t h a t the
Code of Fair Competition for the Cotton Textile Industry is finally
approved with the conditions so accepted and with the amendments
so proposed, as set forth in Schedule A attached hereto.
SCHEDULE A
APPLICATION TO THE PRESIDENT BY THE COTTON TEXTILE INDUSTRY
COMMITTEE FOR FINAL APPROVAL OF CODE OF FAIR COMPETITION
FOR THE COTTON TEXTILE INDUSTRY
The Cotton Textile Industry Committee, the applicant for the approval of
the Code of Fair Competition for the Cotton Textile Industry, submitted for the
approval of the President June 16,1933, and as revised June 30,1933, accepts
the interpretations and conditions to the approval thereof set forth in paragraphs 1, 3, 7, 8, 9 and 13 of the order of the President dated July 9, 1933,
and asks the approval of the President to the following amendments to such
Code as properly complying with and effectuating the conditions provided for
in paragraphs 2, 4, 5, 6, 10, and 11 of said order of approval, and asks for the
final approval by the President of the Code of Fair Competition {or the cotton
textile industry as so amended, and on the conditions so accepted and with
7
98
TEXTS OF CODES
the omission of the condition in paragraph 12 of such order as to the termination
of the approval at the end of four months.
1. It shall be one of the functions of the Planning and Fair Practice Agency
provided for in Section VI of the Code to consider the question of plans for
eventual employee ownership of homes in mill villages and submit to the
Recovery Administration prior to January 1, 1934, its report in the matter.
2. On and after July 31, 1933, the maximum hours of labor for office
employees in the cotton textile industry shall be an average of forty hours
a week over each period of six months.
3. The amount of differences existing prior to July 17, 1933, between the
wage rates paid various classes of employees (receiving more than the established
minimum wage) shall not be decreased—in no event, however, shall any
employer pay any employee a wage rate which will yield a less wage for a work
week of 40 hours than such employee was receiving for the same class of work
for the longer week of 48 hours or more prevailing prior to July 17, 1933.
It shall be a function of the Planning and Fair Practice Agency provided for
in Paragraph VI of the Code to observe the operation of these provisions and
recommend such further provisions as experience may indicate to be appropriate
to effectuate their purposes.
4. On and after the effective date the maximum hours of labor of repair
shop crews, engineers, electricians and watching crews in the Cotton Textile
Industry shall, except in case of emergency work, be forty hours a week with
a tolerance of 10 percent. Any emergency time in any mill shall be reported
monthly to the Planning and Fair Practice Agency provided for in Paragraph 6
of the Code, through the Cotton-Textile Institute.
5. Until adoption of further provisions of this Code that may prove necessary
to prevent any improper speeding up of work (stretch-outs), no employee of
any mill in the cotton textile industry shall be required to do any work in
excess of the practices as to the class of work of such employee prevailing on
July 1,1933, or prior to the Share-the-Work Movement, unless such increase is
submitted to and approved by the Agency created by Section VI of the Code
and by the National Recovery Administration.
6. This Code shall be in operation on and after the effective date as to the
whole cotton textile industry except as an exemption from or a stay of the
application of its provisions may be granted by the Administrator to a person
applying for the same or except as provided in an executive order. No
distinction shall be made in such exemptions between persons who have and
have not joined in applying for the approval of this Code.
Respectfully submitted.
THE COTTON TEXTILE INDUSTRY COMMITTEE,
GEORGE A. SLOAN, Chairman.
Dated July 15, 1933.
A M E N D M E N T TO CODE OF F A I R COMPETITION FOR T H E COTTON T E X T I L E
INDUSTRY
XVII. To make proper provision with regard to the stretch-out (or specialization) system or any other problem of working conditions in the cotton
textile industry, it is provided:
1. There shall be constituted by appointment of the Administrator a Cotton
Textile National Industrial Relations Board, to be composed of three members,
one to be nominated by the Cotton Textile Industry Committee to represent
the employers, one to be nominated by the Labor Advisory Board of the
National Recovery Administration to represent the employees, and a third
to be selected by the Administrator. This National Board shall be provided
by the National Recovery Administration with a per diem for actual days
engaged in its work and with such secretarial and expert technical assistance
as it may require in the performance of its duties.
2. The Administrator, upon the nomination of tne Cotton Textile National
Industrial Relations Board, shall appoint in each State in which the cotton
COTTON TEXTILE INDUSTRY
99
textile industry operates a State Cotton Textile Industrial Relations Board
composed of three members, one of whom shall be selected from the employers
of the cotton textile industry, one from the employees of the cotton textile
industry, and a third to represent the public.
3. Whenever, in any cotton textile mill, a controversy shall arise between
employer and employees as to the stretch-out (or specialization) system or any
other problem of working conditions, the employer and the employees may
establish in such mill an industrial relations committee chosen from the
management and the employees of the mill and on which the employer and
the employees shall have equal representation of not more than three representatives each. If such a committee is not otherwise established, the employer
or the employee, or both, may apply to the State Industrial Relations Board
for assistance and cooperation in the establishment in such mill of such industrial
relations committee. The term of service of each such mill committee shall be
limited to the adjustment of such controversy or problem of working conditions
for the adjustment of which the committee was created.
If the representatives of the employers and of the employees in such industrial
relations committee are unable to arrive at an agreement and united action
with respect to such differences of opinion, the representatives of the employers
or of the employees, or both, may appeal to the State Industrial Relations
Board for cooperation and assistance in arriving at an agreement and united
action.
It shall be the duty of such industrial relations committee to endeavor
to adjust such controversy. - In cases where such committee reaches agreement
with respect to any such controversy, such agreement shall be final except
that it shall be submitted to the Cotton Textile National Industrial Relations
B oard for review and approval under such regulations as such National Board
may establish.
This provision for such industrial relations committee within the particular
mills shall be without prejudice to the freedom of association of employees
and the other provisions of Section 7 of the Industrial Recovery Act.
4. It shall be the duty of the State Industrial Relations Board, where their
assistance is requested, as provided in subsection 3, to cooperate with employers
and employees in organizing industrial relations committees in individual cotton
textile mills and to cooperate with such committees in the development of
conference procedures and in the adjustment of differences of opinion with
respect to the operation or introduction of the stretch-out system and other
problems of working conditions.
In the event that the State Industrial Relations Board is unable to bring
about agreement and united action of labor and management in a controversy
so appealed to it, such State Industrial Relations Board shall present the
controversy to the National Industrial Relations Board for hearing and final
adjustment.
5. The National Industrial Relations Board shall hear and finally determine
all such questions brought before it on appeal by the State Industrial Relations
Boards and certify its decisions to the Administrator and shall have authority
to codify the experience of the industrial relations committees of the various
mills and State boards with a view to establishing standards of general practice
with respect to the stretch-out (or specialization) system or other problems of
working conditions.
EXECUTIVE ORDER
OF
ADMINISTRATOR
J u l y 30, 1933.
A Code of F a i r C o m p e t i t i o n for t h e C o t t o n T e x t i l e I n d u s t r y h a s
b e e n heretofore a p p r o v e d b y t h e P r e s i d e n t on c e r t a i n t e r m s a n d
c o n d i t i o n s . I n accordance w i t h t h e provisions of a further E x e c u t i v e
O r d e r of t h e P r e s i d e n t d a t e d J u l y 15, 1933, after such a p p r o v a l ,
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TEXTS OF CODES
hearings have been granted by the Administrator to certain persons
directly affected by the said Code and who have claimed that applications thereof have been unjust to them and have applied for an
exemption therefrom with reference to the limitation of the use
of productive machinery as applied to the production of tire yarns
or fabric for rubber tires, in addition to the exemption granted
by the President in his Code Approval No. 1 in Paragraph (1)
thereof which extended for a period of three weeks after July 9,
1933.
Pursuant to the authority vested in me under Title I of the
National Industrial Recovery Act, approved June 16, 1933, and
by virtue of Executive Orders thereunder issued by the President
and pursuant to the provisions of the Executive Order dated
July 15, 1933, providing for a stay of the application of Codes
under certain circumstances where justice may require; it appearing
to me on the basis of the showing made at the hearings above
mentioned, that a temporary scarcity and disruption of the supply
of tire yarns or fabrics for rubber tires may result if this stay be
not granted pending adjustment to the requirements of such Code
and in order that there may be equality of treatment:
The application of the Cotton Textile Code is hereby stayed
pending determination by the President of the issues raised by the
applications for exemptions hereinbefore referred to, insofar as
such Code, including therein the interpretations and conditions
contained in Executive Orders of the President relating thereto,
applies to limitations of the use of machinery in use for the production of tire yarns or fabrics for rubber tires.
HUGH S. JOHNSON,
Administrator.
Recommended for approval by:
W.
L. ALLEN
Deputy Administrator.
WOOL TEXTILE INDUSTRY
EXECUTIVE ORDER
J U L Y 26,
1933.
A Code of Fair Competition for the'wool textile industry, having
been heretofore submitted to the National Recovery Administration, hearings having been held thereon, and an Amended
Code of Fair Competition having been submitted on July 25, 1933,
said original Code and said Amended Code having been submitted
by duly qualified and authorized representatives of the industry
complying with the statutory requirements as representing 80
percent, of the capacity of the industry, and said Code being in full
compliance with all pertinent provisions of the National Industrial
Recovery Act, Now Therefore,
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, on the report
and recommendation of the Administrator appointed by me under
the authority of said Act, and on consideration:
It is ordered t h a t the said Code of Fair Competition for the wool
textile industry, as amended and submitted on July 25, 1933, is
hereby approved, subject to the following condition:
(1) To effectuate further the policies of the Act, a Wool
Textile Industry Committee be created to cooperate with the
Administrator as a Planning and Fair Practice Agency for t h e
wool textile industry, which Committee shall consist of five
representatives of the wool textile industry elected by a fair
method of selection, to be approved by the Administrator, and
three members without vote appointed by the Administrator.
FRANKLIN D.
ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
Code of Fair Competition for the Wool Textile Industry, as Approved by
President Roosevelt, Subject to the Provisions of the Foregoing
Executive Order
Submitted by National Association of Wool Manufacturers on July 15, 1933,
as Amended by Resolutions of the Board of Directors of the Association
on July 24, 1933
To effectuate the policy of Title I of the National Industrial
Recovery Act, during the period of the emergency, by reducing
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TEXTS OF CODES
unemployment, improving the standards of labor, eliminating
practices inimical to the interests of the public, employees, and
employers, and otherwise to improve the condition of the wool
manufacturing industry, to increase the consumption of industrial
and agricultural products by increasing purchasing power, and in
other respects, the following provisions are established as a Code
of Fair Competition for the wool textile industry:
I—DEFINITIONS
*
As used herein the term " wool textile industry " shall include,
the following branches: Manufacture of worsted men's wear,
worsted women's wear, carded men's wear, carded women's wear,
blankets, cotton warp fabrics, reworked wool, knitted woolen goods,
worsted sales yarn (Bradford System), worsted sales yarn (French
System), carded sales yarn, and combing, wool scouring and carbonizing, and such other related branches as may from time to
time be included under the provisions of this Code.
The term " employers " shall mean all persons who employ
labor in the conduct of any branch of the wool textile industry,
as defined above.
The term " employees " shall mean all persons employed in the
conduct of any branch of the wool textile industry, as defined
above.
The term " effective date " shall mean August 14, 1933, or, if
this Code shall not have been approved by the President at least
two weeks prior to that date, then the second Monday after such
approval.
The term " person " shall mean any individual, partnership,
association, trust, or corporation.
II—MINIMUM WAGE
On and after the effective date, the wages that shall be paid
by any employer to any employee, employed North of the Mason
and Dixon Line, shall be at not less than the rate of 35 cents an
hour, or of $14 per week for forty hours of labor.
On and after the effective date, the wages that shall be paid by
any employer to any employee, employed South of the Mason and
Dixon Line, shall be at not less than the rate of 32% cents an
hour, or of $13 per week for forty hours of labor.
As to wages of employees now receiving not less than the minimum wage established by this Code, no employer shall, on or after
the effective date, pay any such employee a wage rate which will
yield a less wage for a work week of forty hours than such employee
was receiving for the same class of work for the established longer
week of forty-eight hours or more prevailing prior to the effective
date.
WOOL TEXTILE INDUSTRY
103
I I I — H O U R S OF LABOR
On and after the effective date no employer shall employ any
employee in excess of forty hours per week, this, however, not to
apply to hours of labor for repairship crews, engineers, electricians,
firemen, office, sales and supervisory staff, shipping, watching and
outside crews.
Until adoption of further provisions of this Code t h a t may prove
necessary to prevent any improper speeding up of work (stretchouts), no employee of any mill in the wool textile industry shall
be required to do any work in excess of the practices as to the class
of work of such employee prevailing on July 1, 1933, unless such
increase is submitted to and approved by the Administrator.
I V — H O U R S OF OPERATION OF MACHINERY
On and after the effective date, no employer shall operate any
comb or any spinning spindle or any loom or any knitting machine
for more than two shifts of forty hours each per week.
V—EMPLOYMENT OF MINORS
On and after the effective date, employers shall not employ any
minor under the age of sixteen years.
VI—REPORTS
For the purpose of supplying the President and the Administrator
with requisite data as to the observance and effectiveness of this
Code, and as to whether the wool textile industry is taking appropriate steps to enable it intelligently to adjust its hours of labor,
wages, and productive capacity to changing demands of consumers,
industrial trends, and other conditions in accordance with the
declared policy of the. National Industrial Recovery Act, each
employer shall furnish regular reports as hereinafter provided. The
National Association of Wool Manufacturers, 229 Fourth Avenue,
New York City, is hereby constituted the agency to provide for
the collection and receipt of such reports and for the forwarding
of the substance of such reports to the President, the Association
to provide for receiving and holding such reports themselves in
confidence. Such reports shall be in such form, and shall be furnished
at such intervals, as shall be prescribed by the Association, and
shall contain such information relevant to the purposes of this Code,
as shall be prescribed by the Association from time to time, including
information with respect to the following or related subjects:
1.
2.
Employment, hours, wages, and wage rates.
Production, orders, billings, and stocks (in process and
finished) of products manufactured.
104
TEXTS OF CODES
3.
4.
5.
Financial and cost data.
Activity, purchases, sales, and scrapping of machinery.
Consumption and stocks of raw materials.
V I I — P R I O R CONTRACTS
It is hereby declared to be the policy of this Code that where the
costs of executing contracts for wool or worsted yarns or textiles,
entered into prior to the effective date of this Code, are increased
as a result of the operation of provisions of this Code, appropriate
adjustments of such contracts should be made so as to reflect such
increased costs, and further, t h a t where the performance of orders
for wool or worsted yarns or textiles, accepted prior to the effective
date of this Code, is delayed or prolonged as a result of the operation
of provisions of this Code, appropriate additional time should be
allowed for the completion of such orders. The National Association
of Wool Manufacturers is hereby constituted an agency to assist
in effecting such adjustments, where such adjustments are not
agreed upon by the parties.
VIII—PROVISIONS FROM RECOVERY ACT
Employers shall comply with the requirements of the National
Industrial Recovery Act as follows:
" 1. That employees shall have the right to organize and
bargain collectively through representatives of their own
choosing, and shall be free from the interference, restraint or
coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other
concerted activities for the purpose of collective bargaining
or other mutual aid or protection;
" 2. That no employee and no one seeking employment
shall be required as a condition of employment to join any
company union or to refrain from joining, organizing or
assisting a labor organization of his own choosing; and
" 3. That employers shall comply with the maximum
hours of labor, minimum rates of pay, and other conditions
of employment, approved or prescribed by the President. "
IX—CANCELLATION OR MODIFICATION
This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with Section 10 (b)
of Title I of the National Industrial Recovery Act, from time to
time to cancel or modify any order, approval, license, rule or
regulation issued under Title I of said Act.
WOOL TEXTILE INDUSTRY
X—CHANGES
105
AND ADDITIONS
Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may,
with the approval of the President, be modified or eliminated in
such manner as may be indicated by the needs of the public, by
changes in circumstances, or by experience; all the provisions of
this Code, unless so modified or eliminated, shall remain in effect
until the expiration date of Title I of the National Industrial
Recovery Act.
In order to enable the industry to conduct its operations subject
to the provisions of this Code, to establish fair trade practices within
the industry and with those dealing with the industry, and otherwise to effectuate the purposes of Title I of the National Industrial
Recovery Act, supplementary provisions of this Code or additional
Codes may be submitted from time to time for the approval of the
President.
XI—PARTIAL
INVALIDITY
If any provision of this Code is declared invalid or unenforceable,
the remaining provisions thereof shall nevertheless continue in full
force and effect in the same manner as if they had been separately
presented for approval and approved by the President.
I, WALTER HUMPHREYS, Secretary of the National Association
of Wool Manufacturers, do hereby certify that the foregoing is a
true copy of the Code of Fair Competition for the wool textile
industry submitted to the Administrator under the National
Industrial Recovery Act on July 15, 1933, as amended by vote
of the Board of Directors of the said Association at a meeting held
at the Hotel Washington, Washington, D.C., on July 24, 1933.
Dated July 25, 1933.
W A L T E R HUMPHREYS,
Secretary.
SHIPBUILDING AND SHIPREPAIRING
INDUSTRY
EXECUTIVE
ORDER
July 26, 1933.
A Code of Fair Competition for the shipbuilding and shiprepairing Industry, having been heretofore submitted to the National
Recovery Administration, hearings having been held thereon, and an
Amended Code of Fair Competition having been submitted on
July 25, 1933, said original Code and said Amended Code having
been submitted by duly qualified and authorized representatives
of the industry complying with the statutory requirements as
representing 80 percent, of the capacity of the industry, and said
Code being in full compliance with all pertinent provisions of the
National Industrial Recovery Act, Now Therefore,
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, on the report and
recommendation of the Administrator appointed by me under the
authority of said Act, and on consideration:
It is ordered that the said Code of Fair Competition for the shipbuilding and shiprepairing industry, as amended and submitted on
July 25, 1933, is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
Code of Fair Competition and Trade Practice for the Shipbuilding and
Shiprepairing Industry, as Approved by President Roosevelt
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the shipbuilding and shiprepairing industry.
1—DEFINITION OF TERMS
The terms " shipbuilder " and " shiprepairer ", when used in this
Code, includes a person, partnership, or corporation engaged in the
business of building, fabricating, repairing, reconstructing, remodeling, and assembling oceangoing, harbor and inland water-way
vessels, and floating marine equipment of every type above ten tons,
including the building within their plants of machinery, equipment,
and other ship's parts.
SHIPBUILDING AND SHIPREPAIRING INDUSTRY
107
2—GENERAL REGULATIONS
The shipbuilders and shiprepairers will comply with the following
specific provisions of the National Industrial Recovery Act:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor or their agents, in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
3—REGULATIONS OF HOURS OF W O R K
(a) Merchant Shipbuilding and Shiprepairing.—No employee on
an hour rate may work in excess of an average of thirty-six (36) hours
per week, based upon a six (6) months period ; nor more than forty
(40) hours during any one week. If any employee on an hourly rate
works in excess of eight (8) hours in any one day, the wage paid will
be at the rate of not less than one and one half (1 %) times the regular
hourly rate, but otherwise according to the prevailing custom in
each port, for such time as may be in excess of eight (8) hours.
(b) Shipbuilding for the United States Government.—No employee
on an hourly rate may work in excess of thirty-two (32) hours per
week. If any employee on an hourly rate works in excess of eight (8)
hours in any one day, the wage paid will be at the rate of not less
than one and one half (1 %) times the regular hourly rate, but otherwise according to the prevailing custom in each port, for such time
as may be in excess of eight (8) hours.
(c) Exceptions.—For a period of six (6) months exception may be
made in the number of hours of employment for the employees of the
shipbuilders engaged in designing, engineering and in mold loft and
order departments and such others as are necessary for the preparation of plans and ordering of materials to start work on new ship
construction, but in no event shall the number of hours worked be in
excess of forty-eight (48) hours per week, and in no case or class of
cases not approved by the Planning and Fair Practice Committee
provided for in Section (8).
4—MINIMUM W A G E RATES
(a) The minimum pay for labor, except apprentices, learners,
casual and incidental labor, shall be at the rate of forty-five (45)
cents per hour in the North and thirty-five (35) cents per hour in the
South.
108
TEXTS OF CODES
(1) Apprentices and learners shall not be paid less than the minimum wage after two (2) years of employment.
(2) Casual and incidental labor to be paid not less than eighty
(80) percent, of the minimum wage, the total number of such casual
and incidental employees in any calendar month not to exceed eight
(8) percent, of the total number of skilled and semiskilled employees
during the same period.
(b) The amount of differences existing prior to July 1, 1933,
between the wage rates paid various classes of employees receiving
more than the established minimum wage shall not be decreased.
In no event shall any employer pay an employee a wage rate which
will yield a less wage for a work week of thirty-six (36) hours than
such employee was receiving for the same class of work for a forty
(40) hour week prior to July 1,1933. It is understood t h a t there shall
be no difference between hourly wage rates on commercial work and
on naval work, for the same class of labor, in the same establishment.
5—PROHIBITION OF CHILD LABOR
On and after the effective date of this Code, employers shall not
employ any minor under the age of sixteen (16) years.
6—ARBITRATION OF EXISTING CONTRACTS
Where the costs to the contractor of executing contracts entered
into in the shipbuilding and shiprepairing industry prior to the
presentation to Congress of the National Industrial Recovery Act
or the adoption of this Code are increased by the application of the
provisions of t h a t Act or this Code, it is equitable and promotive of
the purposes of the Act t h a t appropriate adjustments of such contracts to reflect such increased costs be arrived at by arbitral proceedings or otherwise and the applicants for this Code constitute
themselves a Committee to assist in effecting such adjustments.
7—UNFAIR METHODS OF COMPETITION
To accomplish the purpose contemplated by this Act, the members
signatory to this Code agree that the following practices are hereby
declared to be unfair methods of competition.
(a) To sell any product(s) or service(s) below the reasonable cost
of such product(s) or service(s).
(1) For this purpose, cost is defined as the cost of direct labor plus
the cost of materials plus an adequate amount of overhead, including
an amount for the use of any plant facilities employed as determined
by cost accounting methods recognized in the industry (and
approved by the Committee constituted for the enforcement of this
Code as provided in Section 8 (a)).
(b) To give or accept rebates, refunds, allowances, unearned discounts, or special services directly or indirectly in connection with
any work performed or to receipt bills for insurance work until payment is made.
SHIPBUILDING AND SHIPREPAIRING INDUSTRY
109
8—ADMINISTRATION
(a) To effectuate further the policies of the Act, a Shipbuilding
and Shiprepairing Industry Committee is hereby designated to
cooperate with the Administrator as a Planning and Fair Practice
Agency for the shipbuilding and shiprepairing industry. This Committee shall consist of five representatives of the shipbuilders and
shiprepairers elected by a fair method of selection, to be approved
by the Administrator, and three members without vote appointed by
the President of the United States. Such agency may from time
to time present to the Administrator recommendations based on
conditions in their industry as they may develop from time to time
which will tend to effectuate the operation of the provisions of this
Code and the policy of the National Industrial Recovery Act.
(b) Such agency is also set up to cooperate with the Administrator
in making investigations as to the functioning and observance of any
provisions of this Code, at its own instance or on complaint by any
person affected, and to report the same to the Administrator.
(c) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provision of Clause 10 (¿>) of the National Industrial Recovery Act, from
time to time to cancel or modify any order, approval, license, rule,
or regulation issued under Title I of said Act, and specifically to the
right of the President to cancel or modify his approval of this Code
or any conditions imposed by him upon his approval thereof.
(d) Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in the circumstances or experience may indicate. It is contemplated
t h a t from time to time supplementary provisions to this Code or
additional Codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act consistent
with the provisions thereof.
(e) This Code shall become effective not later than ten (10) days
after its approval by the President.
H.
GERRISH SMITH,
President, National Council of American
JOSEPH HAGG,
Shipbuilders.
Jr.,
New York ¿f New Jersey Dry Dock
Assn.
JAMES E. BARNES,
615 Southern Building,
Washington,
D.C.
ELECTRICAL MANUFACTURING INDUSTRY
EXECUTIVE ORDER
August 4, 1933.
An application having been duly made pursuant to and in full
compliance with the provisions ol Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the electrical manufacturing industry,
and hearings having been held thereon and the Administrator
having rendered his report containing an analysis of the said Code
of Fair Competition together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said Code of Fair Competition complies in all respects
with the pertinent provisions of Title I of said Act and that the
requirements of clauses (1) and (2) of subsection (a) of Section 3
of the said Act have been met:
Now, therefore, I, Franklin D. Roosevelt, President ot the
United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Administrator and do order that the said Code
of Fair Competition be and is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HUGH S. JOHNSON.
Code of Fair Competition for the Electrical Manufacturing Industry,
as Approved by President Roosevelt
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a National
Industrial Recovery Code for the electrical manufacturing industry :
I—DEFINITIONS
The terms " electrical manufacturing industry " as used herein
is defined to mean the manufacture for sale of electrical apparatus,
appliances, material or supplies, and such other electrical or allied
products as are natural affiliates. The term " person " as used
ELECTRICAL MANUFACTURING INDUSTRY
111
herein shall include natural persons, partnerships, associations,
trusts, trustees, trustees in bankkruptcy, receivers and corporations. The term " employer " as used herein shall include every
person promoting, or actively engaged in, the manufacture for sale
of the products of the electrical manufacturing industry as herein
defined, provided, however, that organizations or groups of employers representing a substantial part of any branch or subdivision
of the industry may be exempted by the Administrator from the
provisions of this Code. The term " effective date " as used herein
is defined to be the eleventh day after this Code shall have been
approved by the President of the United States.
II
As required by Section 7 (a) of Title I of the National Industrial
Recovery Act, the following provisions are conditions of this Code :
" (1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and
shall be free from the interference, restraint, or coercion ot employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protection ; (2) that no employee and no one seeking employment shall
be required as a condition of employment to join any company
union or to refrain from joining, organizing, or assisting a labor
organization of his own choosing; and (3) that employers shall
comply with the maximum hours of labor, minimum rates of pay,
and other conditions of employment, approved or prescribed by
the President."
Ill
(a) On and after the effective date employers shall not employ
anyone under the age of sixteen years.
(b) On and after the effective date the minimum wage that
shall be paid by any employer to any employee engaged in the
processing of the products of the electrical manufacturing industry
and in labor operations directly incident thereto shall be 40 cents
per hour, unless the rate per hour for the same class of labor was
on July 15, 1929, less than 40 cents, in which case the rate per hour
paid shall be not less than the rate per hour paid on July 15, 1929,
but in no event shall the rate per hour be less than 32 cents per
hour, and provided, also that learners may be paid not less than
80 percent, of the minimum rate paid determined in the manner
above provided, but the number of learners receiving less than such
minimum rate so determined shall not exceed 5 percent, of the total
number of employees engaged in the processing of products and
in labor operations directly incident thereto.
(c) On and after the effective date the minimum wage that shall
be paid by any employer to all other employees, except commission
salespeople, shall be at the rate of $15 per week; provided, however,
112
TEXTS OF CODES
that office boys or girls, and learners may be paid not less than
80 percent, of such minimum wage, but the number of such office
boys or girls, and learners paid at a rate of less than $15 per week
shall not exceed 5 percent, of the total number of employees
covered by the provisions of this paragraph (c).
(d) The minimum rate of wages provided in this Article shall
apply to all employers in all localities unless the Administrator or
his representative shall fix a lower rate for particular localities.
(e) Not later than ninety (90) days after the effective date the
electrical manufacturing industry shall report to the Administrator
through the Board of Governors of National Electrical Manufacturers Association the action taken by all employers in adjusting
the hourly wage rates for all employees receiving more than the
minimum rates provided in paragraph (b) of this Article.
IV
On and after the effective date employers shall not operate on
a schedule of hours:
(a) For employees engaged in the processing of products of the
electrical manufacturing industry, and in labor operations directly
incident thereto, in excess of 36 hours per week.
(b) For all other employees, except executive, administrative
and supervisory employees, and travelling and commission salespeople, in excess of 40 hours per week.
Provided, however, that these limitations shall not apply to
those branches of the electrical manufacturing industry in which
seasonal or peak demand places an unusual and temporary burden
upon such branches; in such cases such number of hours may be
worked as are required by the necessities of the situation, but at
the end of each calendar month every employer shall report to the
Administrator through the Board of Governors of National Electrical Manufacturers Association in such detail as may be required,
the number of man hours worked in that month on account of
seasonal or peak demand requirements, and the ratio which said
man hours bear to the total number of man hours of labor during
said month; and
Provided, further, that these limitations shall not apply in
cases of emergency, but at the end of each calendar month every
employer shall report to the supervisory agency, hereafter provided
for, in such detail as may be required, the number of man hours
worked in that month for emergency reasons and the ratio which
said emergency man hours bear to the total number of man hours
of labor during said month.
V
National Electrical Manufacturers Association is hereby designated the agency for administering, supervising and promoting the
performance of the provisions of this Code by the members of the
electrical manufacturing industry.
ELECTRICAL MANUFACTURING INDUSTRY
113
With a view to keeping the President of the United States and
the Administrator informed as to the observance or non-observance
of this Code and as to whether the electrical manufacturing industry
is taking appropriate steps to effectuate in all respects the declared
policy of the National Industrial Recovery Act, each employer
shall, not less than once in each year, prepare and file with the
Board of Governors or the Executive Committee of the National
Electrical Manufacturers Association an earnings statement and
balance sheet in a form approved by said Board of Governors or
said Executive Committee or in a form acceptable to any recognised
stock exchange. Each employer shall likewise prepare and file
with such person or organization as the Board of Governors or the
Executive Committee of National Electrical Manufacturers Association may designate and at such times and in such manner as
may be prescribed, statistics of plant capacity, volume of production, volume of sales in units and dollars, orders received, unfilled
orders, stock on hand, inventory, both raw and finished, number
of employees, wage rates, employee earnings, hours of work, and
such other data or information as the Board of Governors or the
Executive Committee of National Electrical Manufacturers Association may from time to time require.
VI
Except as otherwise provided in the National Industrial Recovery
Act, all statistics, data and information filed in accordance with the
provisions of Article V shall be confidential, and the statistics,
data and information of one employer shall not be revealed to any
other employer except that for the purpose of facilitating the
administration and enforcement of the provisions of this code, the
Board of Governors or the Executive Committee of National
Electrical Manufacturers Association by their duly authorized
representatives (who shall not be in the employ of any employer
affected by this Code), shall have access to any and all statistics,
data and information that may be furnished in accordance with
the provisions of this Code.
VII
Any employer may participate in any endeavors of National
Electrical Manufacturers Association in the preparation of any
revisions of, or additions or supplements to, this Code by accepting
the proper pro rata share of the cost and responsibility of creating
and administering it, either by becoming a member of National
Electrical Manufacturers Association or by paying to it an amount
equal to the dues from time to time provided to be paid by a
member in like situation of National Electrical Manufacturers
Association.
VIII
Every employer shall use an accounting system which conforms
to the principles of and is at least as detailed and complete as the
8
114
TEXTS OF CODES
uniform and standard method of accounting set forth in the Sixth
Edition of the Manual of Accounting, prepared and published by
the National Electrical Manufacturers Association, and a costing
system which conforms to the principles of and is at least as detailed
and complete as the standard and uniform method of costing to
be formulated or approved by the Board of Governors or Executive
Committee of National Electrical Manufacturers Association, with
such variations therefrom as may be required by the individual
conditions affecting any employers or group of employers and as
may be approved by the Board of Governors or the Executive.
Committee of National Electrical Manufacturers Association or the
supervisory agency and made supplements to the said Manual of
Accounting or method of costing.
IX
No employer shall sell or exchange any product of his manufacture at a price or upon such terms or conditions that will result
in the customer paying for the goods received less than the cost
to the seller determined in accordance with the uniform and standard method of costing hereinabove prescribed, provided, however,
that dropped lines, seconds, or inventories which must be converted
into cash to meet emergency needs may be disposed of in such
manner and on such terms and conditions as the supervisory agency
may approve and ae are necessary to move such product into
buyers' hands, and provided further that selling below cost in
order to meet existing competition on products of equivalent
design, character, quality or specifications shall not be deemed a
violation of this Article if provision therefor is made in supplemental
Codes for any branch or subdivision of the industry, which may be
hereafter prepared and duly approved by the Administrator.
X
If the supervisory agency determines that in any branch or
subdivision of the electrical manufacturing industry it has been
the generally recognized practice to sell a specified product on the
basis of printed net price lists, or price lists with discount sheets,
and fixed terms of payment which are distributed to the trade,
each manufacturer of such product shall within ten (10) days after
notice of such determination file with the supervisory agency a net
price list or a price list and discount sheet as the case may be
individually prepared by him showing his current prices, or prices
and discounts, and terms of payment, and the supervisory agency
shall immediately send copies thereof to all known manufacturers
of such specified product. Revised price lists with or without
discount sheets may be filed from time to time thereaiter with the
supervisory agency by any manufacturer of such product, to
become effective upon the date specified therein, but such revised
ELECTRICAL MANUFACTURING INDUSTRY
115
price lists and discount sheets shall be filed with the supervisory
agency ten days in advance of the effective date, unless the supervisory agency shall authorize a shorter period. Copies of revised
price lists and discount sheets, with notice of the effective date
specified, shall be immediately sent to all known manufacturers of
such product, who thereupon may file, if they so desire, revisions
of their price lists and/or discount sheets, which shall become
effective upon the date when the revised price list or discount sheet
first filed shall go into effect.
If the supervisory agency shall determine that in any branch
or subdivision of the electrical manufacturing industry not now
selling its product on the basis of price lists with or without discount
sheets with fixed terms of payment the distribution or marketing
condition in said branch or subdivision are similar to or the same
as the distribution or marketing conditions in a branch or subdivision of the industry where the use of price lists with or without
discount sheets is well recognized, and that a system of selling on
net price lists or price lists and discount sheets should be put into
effect in such branch or subdivision, each manufacturer of the
product or products of such branch or subdivision shall within
twenty (20) days after notice of such determination file with the
supervisory agency net price lists or price lists and discount sheets
as the supervisory agency may direct containing fixed terms of
payment showing his prices and discounts and terms of payment,
and such price lists and/or discount sheets and terms of payment
may be revised in the manner hereinabove provided.
Ño employer shall sell directly or indirectly by any means
whatsoever any product of the industry covered by the provisions
of this Article at a price lower or at discounts greater or on more
favourable terms of payment than those provided in his current
net price lists or price lists and discount sheets.
XI
Aggregations of employers having a common interest and common
problems will be grouped by National Electrical Manufacturers
Association for administrative purposes in various subdivisions or
product classifications and report of such grouping made to the
Administrator.
XII
In each subdivision or product classification there will be a
supervisory agency approved or appointed by the Board of Governors or the Executive Committee of National Electrical Manufacturers Association and report thereof made to the Administrator.
If formal complaint is made to National Electrical Manufacturers
Association that the provisions of this code have been violated by
any employer, the proper supervisory agency shall investigate the
facts and to that end may cause such examination or audit to be
made as may be deemed necessary.
116
TEXTS OF CODES
XIII
The President may from time to time cancel or modify any
order, approval, license, rule, or regulation issued under Title I
of the National Industrial Recovery Act.
XIV
Such of the provisions of this Code as are not required by the
National Industrial Recovery Act to be included herein may, with
the approval of the President of the United States, be modified or
eliminated as changed circumstances or experiences may indicate.
This Code is intended to be a basic Code, and study of the trade
practices of the electrical manufacturing industry will be continued
by the Board of Governors of National Electrical Manufacturers
Association with the intention of submitting to the Administrator
for approval, from time to time, additions to this Code applicable
to all employers in the electrical manufacturing industry and
supplemental Codes applicable to one or more branches or subdivisions or product classifications of the electrical manufacturing
industry, such supplemental Codes, however, to conform to and
be consistent with the provisions of this Code as now constituted
or hereafter changed.
XV
If any employer of labor in the electrical manufacturing industry
is also an employer of labor in any other industry, the provisions
of this Code shall apply to and affect only that part of his business
which is included in the electrical manufacturing industry.
COAT AND SUIT INDUSTRY
EXECUTIVE ORDER
August 4,1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the coat and suit industry, and hearings
having been held thereon, and the Administrator having rendered
his report containing an analysis of the said Code of Fair Competition, together with his recommendations and findings with respect
thereto, and the Administrator having found that the said Code of
Fair Competition complies in all respects with the pertinent pro^
visions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section 3 of the said Act have been
met:
Now, therefore, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested in me by Title I of thé
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said Code of
Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
Code of Fair Competition for the Coat and Suit Industry, as Approved
by President Roosevelt
Submitted by American Cloak and Suit Manufacturers Association, Inc.,
Industrial Council of Cloak, Suit, and Shirt Manufacturers, Inc., and
Merchants Ladies Garment Association, Inc.
PART
I—LABOR
To effectuate the policy of Title I of the National Industrial
Recovery Act, during the period of the emergency, by reducing and
relieving unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of the public,
employees and employers and otherwise rehabilitating the coat and
118
TEXTS OF CODES
suit industry, the fallowing provisions are established as a Code of
Fair Competition for the coat and suit industry:
FIRST
DEFINITIONS
The term " effective date " as used herein is defined to be the
first Monday following the approval of this Code by the President.
The term " persons " as used herein shall include natural persons,
partnerships, associations, and corporations.
The term " employer " as used herein shall include every person
(whether individual, partnership, association, or corporation) engaged in the production and/or wholesale distribution of coats and
suits, as contractor, subcontractor, manufacturer, submanufacturer,
wholesaler, or jobber.
The term " manufacturing employee " as used herein is defined
to mean one who is engaged in the cutting, machine operating,
hand-sewing, pressing, basting, examining, sample making, finishing, draping, pinning, busheling, grading, or any other hand or
machine operation upon garments in any factory in the coat and
suit industry.
The term " nonmanufacturing employee " as used herein is
defined to mean all persons engaged in the coat and suit industry
not included in any of the above classifications.
The term " coat and suit industry " as used herein is defined to
include the manufacture and/or wholesale distribution of women's,
misses', children's, and infants' coats, jackets, capes, wraps, riding
habits, knickers, suits, ensembles, and skirts, in whole or in part,
made of woolen, silk (only when made into tailored garments),
velvet, plush, and other woven or purchased knitted materials. In
such instances where a single concern is engaged in the manufacture
and/or wholesale distribution of such commodities as well as the
manufacture and/or wholesale distribution of other commodities
not described above, such concerns will be deemed a part of the
coat and suit industry to the extent of that portion of their business
that lies in the field herein defined.
For the purposes of administration two areas have been established: the Eastern Area shall include the States of Maine, New
Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut,
New York, Pennsylvania, New Jersey, Delaware, and Maryland;
the Western Area shall include all parts of the U.S.A. not included
in the Eastern Area. The Baltimore market is included in the
Eastern Area with the provision that the employers' association
therein may request the appointment of a Commission by the
Administrator to determine after investigation what modifications
should be granted, if any.
SECOND
On and after the effective date, employers in the coat and suit
industry shall not employ as manufacturing employees any persons
COAT AND SUIT INDUSTRY
119
under the age of eighteen (18) years, and as nonmanufacturing
employees any persons under the age of sixteen (16) years.
THIRD
On and after the effective date, employers in the coat and suit
industry shall not operate on a schedule of hours of labor for their
employees, except clerical and service employees working in office
and shipping departments, in excess of thirty-five (35) hours per
week.
Such work shall be divided into five (5) working days, the working
hours to be from 8.30 a.m. to 4.30 p.m. with one hour interval
for lunch. Nonmanufacturing employees shall not work in excess of
forty (40) hours per week. There shall be no more than one shift of
workers in any day. No overtime is permitted except t h a t the
Administrator may grant an extension of hours in the busy season
when and if, in his judgment, labor in the industry is fully employed
and conditions make such an order advisable.
This provision shall apply to any individual who may do the
work of a manufacturing employee as defined herein.
No home work shall be allowed and no work shall be done or
permitted in tenement houses, basements or in any unsanitary
buildings or buildings unsafe on account of fire risks.
FOURTH
On and after the effective date, the basic minimum wage t h a t
shall be paid by employers in the coat and suit industry to any of
their nonmanufacturing employees shall be at the rate of $14
per week.
FIFTH
Eastern Area.—On and after the effective date, manufacturing
employees, for the Eastern Area, enumerated below, shall be paid
not less than the following minimum wage scale, for each full
week's work:
Per week
Coat and Suit Cutters
$47.00
Samplemakers
40.00
Examiners
36.00
Drapers
29.00
Begraders on Skirts
32.00
Bushelmen who also do Pinning, Marking, and general work on Garments
36.00
The employers in the crafts enumerated below shall work on a
piece rate basis. They shall receive guaranteed minimum wages,
not less than the following:
Per hour
Jacket, Coat, Reefer and Dress Operators, Male
Jacket, Coat, Reefer and Dress Operators, Female
$1.00
.90
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TEXTS OF CODES
Pa hour
Skirt Operators, Male
Skirt Operators, Female
Piece Tailors
Reefer, Jacket, and Coat Finishers
Jacket, Coat and Reefer Finishers' Helpers
Jacket, Coat, Reefer and Dress Upper Pressers
Jacket, Coat, Reefer and Dress Under Pressers
Skirt Upper Pressers
Skirt Under Pressers
Skirt Basters
Skirt Finishers
Machine Pressers
$.90
.80
.90
.85
63
1.00
.90
.90
.85
.60
.60
1.30
All manufacturers in the Eastern Area operating outside t h e
limits of New York and Philadelphia shall operate on a scale ten (10)
percent, less than provided herein for the Eastern Area.
In fixing piece work rates on garments, the same shall be computed on a basis to yield to the worker of average skill of t h e
various crafts for each hour of continuous work, the following
amounts :
Per hour
Jacket, Coat, Reefer and Dress Operators
Skirt Operators
Piece Tailors
Reefer, Jacket and Coat Finishers
Jacket, Coat and Reefer Finishers' Helpers
Jacket, Coat and Reefer and Dress Upper Pressers
Jacket, Coat, Reefer and Dress Under Pressers
Skirt Upper Pressers
Skirt Under Pressers
Skirt Basters
Skirt Finishers
Machine Pressers
.
$1.50
1.40
1.30
1.25
1.00
1.35
1.25
1.25
1.25
80
.70
1.80
Western Area.—On and after the effective date, manufacturing
employees, for the Western Area, enumerated below, shall be paid
not less than the following minimum wage scale, for each full
week's work:
Per week
Coat and Suit Cutters
Semiskilled Cutters
Clothing and Lining Pilers
Pilers
Canvas Cutters
Apprentice Cutters for six months
Sample Makers
Examiners
$41.00
39.00
33.00
28.00
26.00
22.00
40.00
32.00
The employees in the crafts enumerated below shall work on a
piece-rate basis. They shall receive guaranteed minimum wages,
not less than the following:
Male, per hour
Jacket, Coat, Reefer and Dress Operators
$.85
Skirt Operator
.75
Jacket, Coat, Reefer and Dress Upper Pressers
85
Jacket, Coat, Reefers and Dress Under Pressers
.77
Jacket, Coat, Reefer and Dress Part Pressers
.65
Jacket, Coat, Reefer Finishers
.75
Apprentices in the above classifications for a period not exceeding six
months . . . . . . . '
.60
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COAT AND SUIT INDUSTRY
Female, per hour
Jacket, Coat, Reefer and Dress Operators
Jacket, Coat, Reefer and Dress Operators (semi-skilled)
Skirt Operators
Lining Ironers
Jacket, Coat, Reefer and Dress Finishers
Jacket, Coat, Reefer Finishers' Helpers
Jacket, Coat, Reefer, Skirt Buttonsewers
'.
Apprentices in the above classifications for a period not exceeding six
months
10.75
.62
70
.60
.63
53
.53
.47
In fixing piece-work rates on garments, the same shall be computed on basis to yield to the worker of average skill of the various
crafts for each hour of continuous work the following amounts :
Male, per hour
Jacket, Coat, Reefer, and Dress Operators
Skirt Operator
Jacket, Coat, Reefer, and Dress Upper Pressers
Jacket, Coat, Reefer, and Dress Under Pressers
Jacket, Coat, Reefer, and Dress Part Pressers
Jacket, Coat, and Reefer Finishers
$1.26
1.15
1.26
1.15
.92
1.10
Female, per hour
Jacket, Coat, Reefer, and Dress Operators
Jacket, Coat, Reefer, and Dress Operators (semiskilled)
Skirt Operators
Lining Ironers
Jacket, Coat, Reefer, and Dress Finishers
Jacket, Coat, Reefer Finishers' Helpers
Jacket, Coat, Reefer, Skirt Buttonsewers
?0.95
.88
90
.82
.84
.70
.70
The Western Area shall operate on the basis of the present
existing classifications subject to further study by the Coat and
Suit Code Authority who will make recommendations to the
Administrator for such changes as will eliminate such competitive
irregularities as may be found to exist.
Both Areas.—Compensation for employment now in excess of the
minimum wage set forth herein shall not be reduced, notwithstanding that the hours worked in such employment may be hereby
reduced.
SIXTH
During the years 1924 and 1925, an unemployment insurance fund
was established and existed in the coat and suit industry. It was
discontinued because of the general disorganization of the industry.
There is every hope and expectation on the part of the employers
and employees that through the National Industrial Recovery Act
steps may again be taken to put into active operation an unemployment insurance fund. Accordingly, such fund shall be resumed
as soon as the enforcement of uniform labor standards and general
stabilization have reached a point at which the provisions for
payment of unemployment insurance contributions can be generally
enforced throughout the industry. The time when the conditions
in the industry shall have reached a point when such fund may be
reestablished shall be determined by the Code Authority herein-
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TEXTS OF CODES
after mentioned and the Administrator. When it is reestablished,
it shall be in accordance with such provisions as shall be determined
upon by the said Code Authority and the Administrator.
SEVENTH
Further to effectuate the provisions of this Code and to eliminate
substandard and sweatshop conditions in the coat and suit industry,
all garments manufactured or distributed shall bear an N.R.A.
label, which shall be attached to every garment. It shall bear a
registration number specially assigned to each employer in the
industry and remain attached to such garment when placed on sale
by the retail distributor. All employers, as herein defined, whether
or not members of the associations herein mentioned, may apply
to the Coat and Suit Code Authority for a permit to use the N.R.A.
label, which permit to use the label shall be granted to them, but
only if they comply with the standards set forth in this Code. The
Coat and Suit Code Authority hereinafter mentioned shall establish
the appropriate machinery for the issuance of labels, inspection,
examination, and supervision of employers engaged in the industry
of such garments.
EIGHTH
The responsibility for the administration and enforcement of
this Code shall be vested in a Coat and Suit Code Authority.
This Coat and Suit Code Authority shall be constituted as
follows :
Two members selected from each of the three associations
submitting this Code;
Two members selected by the International Ladies' Garment
Workers Union;
Two members selected collectively by the associations in the
Western Area.
The Coat and Suit Code Authority is expressly authorized to
deputize its representatives to do and perform such acts as may be
necessary to carry into effect the provisions, purpose, and intent
of this Code.
The Coat and Suit Code Authority shall be empowered to consider
and act upon the following recommendations:
(a) Recommendations as to the requirement by the Administrator of such other and further reports from persons engaged in the
coat and suit industry of statistical information and the keeping of
uniform accounts as may be required to secure the proper observances of the Code and promote the proper balancing of production,
distribution, and consumption and the stabilization of the industry
and employment.
(¿>) Recommendations for the setting up of a Service Bureau for
engineering, accounting, credit, or any other purposes that may aid
in the conditions of this emergency and the requirements of this
Code.
COAT AND SUIT INDUSTRY
123
(c) Recommendations for the making of rules by the Administrator as to practices by persons engaged in the coat and suit
industry as to methods and conditions of trading, the naming and
reporting of prices which may be appropriate to avoid discrimination, to promote the stabilization of the industry, to prevent and
eliminate unfair and destructive prices and practices.
(d) Recommendations for regulating the disposal of distress
merchandise in a way that will secure the protection of the owners
thereof and at the same time promote sound and stable conditions
in the industry.
(e) Recommendations as to the making available to the suppliers
of credit to those engaged in the industry all information regarding
terms of and actual functioning of any or all of the provisions of the
Code, the conditions of the industry and regarding the operations of
any and all persons engaged in the industry and covered by this
Code, to the end that during the period of the emergency available
credit may be adapted to the needs of the coat and suit industry,
considered as a whole, and to the needs of the small as well as of
the large units.
(/) Recommendations for dealing with any inequalities that may
otherwise arise that may endanger the stability of the industry
and/or production and employment.
Such recommendations, when approved by the Administrator
shall have the same force and effect as any other provision of
this Code.
The Coat and Suit Code Authority shall have power to examine
all books of accounts and records of employers so far as necessary
to ascertain whether they are observing the provisions of this Code,
and all employers shall submit their books and records for such
examination.
The Coat and Suit Code Authority shall have power to appoint
a director, a staff of accountants, and such other employees as
may be required for the effective discharge of its functions.
The expense of maintaining the Coat and Suit Code Authority
shall be borne by the International Ladies' Garment Workers
Union, the parties to this Code, and all other employers in the
industry in such proportions and amounts and in such manner as
may be determined by the Coat and Suit Code Authority.
The Coat and Suit Code Authority shall proceed through subcommittees to evolve standards for size and quality, including
shrinkage tolerance and color fastness and protection against
piracy in styles, and shall report within three months after the
taking effect of this Code, such standards to be effective three
months thereafter.
NINTH
It is recognized that in the Eastern and Western Areas the
methods employed to a very large extent in the production of
garments in the coat and suit industry necessitate the employment
of contractors and submanufacturers.
Accordingly, all firms
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TEXTS OF CODES
engaged in the coat and suit industry who cause their garments
thus to be made by contractors and submanufacturers as aforesaid
shall designate the contractors actually required, shall confine and
distribute their work equitably to and among them, and shall adhere
to the payment of rates for such production in an amount sufficient
to enable the contractor or submanufacturer to pay the employees
the wages and earnings provided for in this Code, together with an
allowance for the contractor's overhead.
To insure the observance of this provision, the committee named
in this Code, together with the Administrator, shall formulate
provisions to carry into effect the purpose and intent hereof.
TENTH
Employers in the coat and suit industry shall comply with the
requirements of the National Industrial Recovery Act as follows:
(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall
be free from interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives
or in self-organization or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection ;
(b) No employee and no one seeking employment shall be
required, as a condition of employment, to join any company union
or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
ELEVENTH
(a) This Code is not designed to promote monopolies and shall
not be availed of for that purpose.
(b) The provisions of this Code shall not be so interpreted or
administered as to eliminate or oppress small enterprises or to
discriminate against them.
TWELFTH
Wherever in this industry agreements between employers and
employees arrived at by collective bargaining shall exist or shall
come into existence hereafter, all the provisions of such agreements
with reference to labor standards not prohibited by law and not
inconsistent with NI RA shall be administered as though a part
of this Code.
THIRTEENTH
This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
COAT AND SUIT INDUSTRY
125
vision of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under Title I of said Act, and specifically
to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may,
with the approval of the President, be modified or eliminated as
changes in circumstances or experience may indicate. It is contemplated that from time to time supplementary provisions to this
Code or additional Codes will be submitted for approval of the
President to prevent unfair competition in price and other unfair
and destructive competitive practices and to effectuate the other
purposes and policies of Title I of the National Industrial Recovery
Act consistent with the provisions hereof.
THEATRICAL INDUSTRY
EXECUTIVE ORDER
August 16, 1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the legitimate full-length dramatic and
musical theatrical industry, and hearings having been held thereon
and the Administrator having rendered his report containing an
analysis of the said Code of Fair Competition together with his
recommendations and findings with respect thereto, and the
Administrator having found that the said Code of Fair Competition
complies in all respects with the pertinent provisions of Title I of
said Act and that the requirements of clauses (1) and (2) of subsection (a) of Section 3 of the said Act have been met:
Now, therefore, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved.
Approval recommended:
FRANKLIN
D. ROOSEVELT.
HUGH S. JOHNSON.
Code of Fair Competition for the Legitimate Full-Length Dramatic and
Musical Theatrical Industry, as Approved by President Roosevelt
PREAMBLE
To effectuate the policy of Title I of the National Industrial
Recovery Act, to remove obstructions to the free flow of interstate
and foreign commerce and to promote cooperative action to reduce
and relieve unemployment, improve standards of labor, eliminate
unfair competitive practices, avoid restriction of production,
increase purchasing power and rehabilitate industry, particularly
as it pertains to the dramatic and musical comedy theatre known
as the legitimate theatre with the expressed purpose of revitalizing
it as a national institution so that the road may be restored and
THEATRICAL INDUSTRY
127
plays may once more be given in every part of the country, the
following is adopted as a Code of Fair Competition for the dramatic
and musical comedy theatre known as the legitimate theatre.
ARTICLE I—DEFINITIONS
1. The term " effective date " as used herein is defined to be the
tenth day following the approval of this Code by the President.
2. The term " legitimate " is what is generally known as the
legitimate full-length theatrical performances of dramatic and
musical plays as differentiated from grand opera, vaudeville,
presentation, " rep " show, " tab " show, tent show, wagon show,
Chautauqua, showboat, burlesque or motion or sound picture
performances.
3. The term " stock " is defined as legitimate theatrical performances rendered by a resident company of actors appearing in
legitimate theatrical productions of dramatic or musical plays
theretofore and previously produced, and which productions so
given are changed at stated or frequent intervals.
4. The term " persons " as used herein shall include, without
limitation, natural persons, partnerships, associations, and
corporations.
5. The term " employer " as used herein shall include every
person engaged in the management or ownership of theatres presenting, or the management or production of, full-length dramatic
or musical plays.
6. The term " employee " as used herein shall include every
person employed by any employer (as above defined).
ARTICLE II—ADMINISTRATION
1. With the approval of the President there shall be constituted
a National Legitimate Theatre Committee to consist of one duly
authorized representative each from Actors' Equity Association,
Chorus Equity Association, the International Alliance of Theatrical
Stage Employees and Moving Picture Machine Operators of U.S.
and Canada, American Federation of Musicians of the U.S. and
Canada, United Scenic Artists of America, one duly authorized
representative from the group of employees not hereinbefore
embraced, one representative from the Dramatists' Guild of the
Authors' League of America, three duly authorized representatives
from the National Association of the Legitimate Theatre, Inc., two
duly authorized representatives from the National Dramatic
Stock Association (which shall have three representatives as
members whenever questions relating solely to stock productions.
are considered), and not more than three representatives who may be
appointed by the National Recovery Administrator.
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TEXTS OF CODES
2. With the approval of the President such committee shall be
empowered to assist the National Recovery Administrator in
administering the provisions of the Act as set forth in this Code;
may initiate and shall consider such recommendations and regulations
and interpretations including trade practices as may come before
it and in such case shall, in deliberations held without publicity
and recorded in writing, submit to the National Recovery Administrator its advice, setting forth in each instance whether said committee unanimously approves or unanimously rejects or is disagreed
upon the proposal, and in such events the National Recovery
Administrator shall determine.
3. Such committee shall also supervise the application of this
Code and shall notify any and all persons subject to the jurisdiction
of this Code of its provisions and regulations and shall designate
such agents and delegate such authority as may be necessary to
effectuate such purposes.
4. As and when any question shall be deliberated upon by the
National Legitimate Theatre Committee with respect to the distribution of theatre tickets, two duly authorized representatives from
the National Theatre Ticket Distributors, Inc., shall thereupon and
only with reference to such questions become members of said
National Legitimate Theatre Committee.
ARTICLE III—GENERAL LABOR PROVISIONS
1. The employers agree that employees of employers subject to
the jurisdiction of this Code shall have the right to organize and
bargain collectively through representatives of their own choosing,
and shall be free from the interference, restraint, or coercion of
employers of labor, or their agents, in the designation of such
representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid
or protection; no employee of employers subject to the jurisdiction
of this Code, and no one seeking employment from such employers,
shall be required as a condition of employment to join any company
union or to refrain from joining, organizing, or assisting a labor
organization of his own choosing; employers subject to the jurisdiction of this Code shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
2. To effectuate Section 7 of the Industrial Recovery Act and in
the interest of an American standard of living, the employers declare
themselves in favor of fair scales of wages, proper hours and working
conditions for all of their employees.
3. There are a number of rules and regulations presently
existing in respective or collective agreements between the employers and their organized employees. The employers and employees
pledge themselves to work for a readjustment of any and all
conditions or rules or regulations which prove either to result in
THEATRICAL INDUSTRY
129
prohibitive production costs or in any loss of employment among all
the employees of the employers.
ARTICLE
IV—ACTORS
1. For actors with more than two years' theatrical experience,
the employers agree to pay a minimum wage as follows:—Where
the box-office price of the theatrical attraction is §4.50 or more top
price, the minimum wage shall be $50 per week; where the top
box-office price of the theatrical attraction is §4.00 or more but less
than $4.50, the minimum wage shall be §45 per week; where the top
box-office price of the theatrical attraction is more than §3.00 but
less than §4.00, the minimum wage shall be §42.50 per week; where
the top box-office price of the theatrical attraction is §3.00 or under,
the minimum wage shall be §40 per week.
2. For actors with less than two years' theatrical experience the employers agree to pay a minimum wage of §25 per
week.
3. For the chorus there shall be a minimum wage of §30 per
week, the employers subscribing to the wages presently fixed by the
Chorus Equity Association.
4. The employers agree that at the end of two weeks of rehearsals, they will pay a full week's salary to all actors receiving §100
a week or less; that for the first and second weeks of production
half salaries shall be paid. This provision is designed to aid and
assist actors who may require funds during the rehearsal periods.
The prepayment of such actors is in the nature of an advance payment
of salary.
5. There presently exist abuses with respect to the hours of labor
of actors during the rehearsal period. The employers recognize
that such abuses exist and hereby pledge themselves to the Actors'
Equity Association and the Chorus Equity Association and through
the National Legitimate Theatre Committee to adopt and put into
force, subject to the approval of the National Recovery Administrator within the shortest possible time after the effective
date of this Code, regulations of such hours of labor during the
rehearsal period which will be fair, just and humane conforming
to the spirit of the National Industrial Recovery Act, and for
the violation of which rules and regulations penalties shall be imposed.
6. The employers agree to a week of not more than 40 hours for
actor employees. By reason of the peculiar nature of this industry
this provision shall not be binding during the rehearsal periods,
such periods having been above provided for.
7. Upon the payment of the week's salary herein provided for at
the end of the two weeks of rehearsals, any bond or monies deposited
by the employer shall be reduced by the amount of payment
actually made against such salaries as described.
9
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TEXTS OF CODES
ARTICLE
V—MUSICIANS, THEATRICAL STAGE EMPLOYEES
MOVING PICTURE MACHINE OPERATORS
AND
For those employees associated with organizations of or performing the duties of theatrical stage employees, moving picture
machine operators or musicians, there shall be a minimum wage
of thirty dollars ($30.00) per week for eight performances per week
and pro rata per performance or for rehearsals, and a forty-hour
week. However, where the prevailing wage scale as of July 1,
1933, enforced by the American Federation of Musicians or any
of its locals with respect to musicians and enforced by the International Alliance of Theatrical Stage Employees and Moving
Picture Machine Operators or any of its locals with respect to
theatrical stage employees or motion picture machine operators,
whether weekly or daily, and the division of hours of labor, whether
weekly or daily, are at a rate exceeding the minimum weekly wage
scale herein provided for or less t h a n the maximum number of
hours per week herein provided for, such prevailing scales and
hours of labor throughout the country shall be deemed to be and
hereby are declared to be the minimum scale of wages and maximum
number of hours with respect to such employees under this section
of the Code.
ARTICLE VI—SCENIC ARTISTS
Since the relations of the employers are with firms of scenic
artists having contractual relations with organizations of such
labor, no minimum wage or maximum number of hours of labor
with respect to such labor is fixed herein.
ARTICLE V I I — T R A N S F E R M E N
The situation above set forth with respect to the scenic artists
prevails also with respect to transfer men. The employers declare
in favor of revision of the agreements of the Theatrical Truckmen's
Union and the Allied Theatrical Transfer Association and pledge
themselves to work for a readjustment of their present transfer
costs.
ARTICLE VIII—THEATRICAL W A R D R O B E ATTENDANTS
For those employees associated with organizations of or performing the duties of theatrical wardrobe attendants, there shall
be a minimum wage of $30 per week for a 40-hour week. However,
where the present prevailing wage scale enforced by t h e Theatrical
Wardrobe Attendants' Union is a rate exceeding t h e minimum
weekly wage scale herein provided for, such prevailing scale
THEATRICAL INDUSTRY
131
throughout the country shall be deemed to be and hereby is
declared to be the minimum scale of wages with respect to such
employees under this Code.
ARTICLE IX—COMPANY MANAGERS AND HOUSE TREASURERS
There shall be a minimum wage of $40 per week for a 40-hour
week for company managers and house treasurers.
ARTICLE X — P R E S S REPRESENTATIVES
There shall be a minimum wage of $50 per week for press representatives stationed in any particular locality and $75 per week
for press representatives who are traveling. The employers agree
t h a t they will give one week's notice of dismissal and agree t h a t
the employment of any press representative will be for not less
than one week. Due to the varied nature of the work of the press
representatives, it is not practical to fix a maximum number of
hours per week.
ARTICLE X I — O T H E R EMPLOYEES
1. For all other employees of the employers such as ushers,
ticket takers, scrubwomen, theatre attendants, etc., there shall be
a minimum wage of 30 cents per hour for a 35-hour week. There
shall be a minimum wage of 30 cents per hour for porters for a
40-hour week.
2. Electrical workers, engineers, firemen, oilers, or other skilled
mechanics who are directly employed by the employers as defined
in this Code, shall receive a minimum wage at the rate of thirty
dollars ($30) per week for a 40-hour week whether such wage shall
be computed hourly, daily or weekly. If the prevailing wage scale
and maximum number of hours per week as of July 1, 1933, as
fixed in any contractual agreement between the employers and
associations of any of such employees, however, shall be at a rate
exceeding the minimum wage scale herein provided for or less
than the number of hours per week herein provided for with respect
to any of such employees, such scales and hours of labor in the
localities where same were enforced shall be deemed to be and
hereby are declared to be the minimum scale of wages and the
maximum number of hours with respect to such employees in such
localities under this section of the Code.
ARTICLE X I I — S T O C K PRODUCTIONS
1. Anything herein contained to the contrary notwithstanding,
employees of employers engaged in presenting resident stock
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TEXTS OF CODES
company productions shall receive minimum wages and work not
longer than the maximum hours as hereafter in this article provided :
A. Actors, (a) In cities of more than 500,000 population, not
less than six actors regularly employed in the stock company shall
receive a minimum wage of §40 per week; other actors shall receive
a minimum of $25 per week; jobbers shall receive a minimum of
$15 per week; local jobbers shall be employed pursuant to the rules
of the Actors' Equity Association.
(b) In cities of less than 500,000 population or in neighborhood
or suburban localities in cities of more than 500,000 population,
not less than four actors regularly employed in the stock company
shall receive a minimum wage of $40 per week; all other actors,
excluding jobbers, shall receive a minimum of $25 per week;
jobbers and local jobbers shall be employed pursuant to the rules of
the Actors' Equity Association and shall be paid a minimum wage
of not less than f 14.50 per week in any city of between 250,000
and 500,000 population, of not less than $14.00 per week in any
city of between 2,500 and 250,000 population, and of not less than
$12.00 per week in towns of less than 2,500 population.
(c) The maximum number of hours for actors in stock companies
shall be 40 hours per week (rehearsal periods by reason of the
peculiar nature of stock company productions not being included).
(d) For the chorus there shall be a 40-hour week with a minimum
wage scale. In productions presented during the period from May
30 to Labor Day in any year, $25 per week where the highest
admission price is $1 or less, and $30 per week where the highest
admission price is more than $1 ; and in productions presented
during any other period in any year, $30 per week where the highest
admission price is $1 or less, and $35 per week where the highest
admission price is more than $1.
B. Stock company managers shall receive a minimum wage of
$25 per week for a 40-hour week.
C. Stock treasurers shall receive a minimum of $20 per week
for a 40-hour week.
D. Press representatives shall receive a minimum wage of $25
per week for rendition of exclusive services to the employer. By
reason of the varied nature of the work of such employees it is not
practical to fix a maximum number of hours per week.
E. The provisions of Article XI, section 1, of this Code are
hereby incorporated herein.
F. The provisions of Article V and Article XI, section 2, of this
Code are hereby incorporated herein in all respects, saving to the
stock company employees however the advantages of any special
provisions in their favor enforced by or provided for in collective
bargaining agreements with associations of such employees.
2. The provisions of Article XIV of this Code shall not apply
to employers presenting stock company attractions.
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ARTICLE XIII—CHILD LABOR
Employers shall not employ any employees under the age of
sixteen years. However, with the consent of the proper governmental authority the employers may employ an actor under the
age of sixteen years to fill a role especially written for a child actor
or to fill a part requiring the services of a child actor.
ARTICLE XIV—DRAMATISTS
1. The Dramatists' Guild of the Authors' League of America,
Inc., as a means of ascertaining whether, in the Guild's opinion,
certain provisions will operate to encourage theatrical production
and thereby cause employment of actors and other employees of
the legitimate theatre, as a temporary expedient voluntarily agree
to pass an amendment to the Minimum Basic Agreement in substance as follows:
2. Upon the execution of any production contract executed
between the effective date of this amendment and September 15,
1934, the dramatist shall be paid a sum of not less than $500, not
returnable under any circumstances, which sum shall be an advance
against royalties if the play runs three consecutive weeks in New
York City and which shall not be deducted from royalties if the
play does not run the said three weeks in New York City. If the
manager closes the play at the end of the first week's production,
the manager shall pay to the dramatist his royalties in full to the
date of closing and he shall thereupon be entitled to share to the
extent of 15 percent, in all monies received by the dramatist whçn
the dramatist sells or otherwise disposes of the motion picture
rights in such play; if the manager closes the play at the end of two
full consecutive weeks' production, he shall pay to the dramatist
his royalties in full to the date of closing and thereupon his share
of the said proceeds from the sale or other disposition of the motion
picture rights shall be 25 percent. If the play fails to run three
weeks the control of the sale of the motion picture rights shall be
with the dramatist, but the sale shall be made through the motion
picture Arbiter in order to protect the manager. This amendment
shall become operative upon the effective date of this Code, provided
the managers signatory to the Minimum Basic Agreement shall
have ratified such amendment at a meeting.
ARTICLE XV—PARTICIPATION
IN CODE
Any existing employers as herein defined, or employer who shall
become such hereafter, whether members of any association or no
may participate in the Code and any subsequent revisions, addition ,
or amendments thereof, by indicating their intention of full
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subscribing to the provisions of the Code, and by assuming the
responsibilities of such participation.
ARTICLE XVI—TRADE PRACTICES
1. The employers agree that it shall be an unfair practice to
violate the terms of any booking agreement. This declaration is
required by reason of the abuses which have taken place in connection with cancellation of booking of road attractions in direct
violation of the terms and provisions of such road booking
attractions.
2. The employers agree that it shall be an unfair practice for
any employer to aid, abet, or assist in the voluntary release or
dismissal of any actor for the purpose of permitting such actor to
leave the cast of an attraction then playing in order to accept
employment in motion pictures. This declaration is required in
order to preserve and protect the rights of all concerned in the
presentation of a legitimate production in such instances where one
of the players to enter motion pictures with the aid and assistance
of the employer leaves the attraction, weakening the same and
necessitating the closing of such attraction and the resultant
unemployment of other persons associated in the presentation of
such attraction.
3. The employers agree that it shall be an unfair practice for
any employer to aid, abet, or assist in the voluntary release or
dismissal of any author, dramatist, or actor employed in rendering
his exclusive services in connection with the production of a motion
picture for the purpose of securing the services of such author,
dramatist, or actor.
4. The employers pledge themselves not to distribute any of
their tickets to any cut-rate ticket agency in the event any such
ticket agency shall discriminate in the handling or distribution of
such tickets in turn to the public. By discrimination is meant the
favoring of certain attractions against others.
5. The employers pledge themselves to eliminate the abuses now
existing with respect to the distribution of legitimate theatre
tickets to the public. The employers agree that they will not
distribute their tickets to the public directly at prices in excess
of the theatre box office price fixed for such tickets. The employers
agree that they will not distribute their tickets to the public through
agencies except
(a) To recognized bona fide agencies regularly and customarily
engaged in the offering of theatre tickets to the public, and
(è) To such agencies which will not charge the public for such
tickets any sums in excess of their box office price plus a
proper agency fee satisfactory to the National Legitimate
Theatre Committee.
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135
In the enforcement of the foregoing provisions the employers
shall treat all agencies equally.
6. The employers pledge themselves to retain in the box office
for sale direct to the public a fair percentage of seats in all parts
of the house; this percentage to be determined by the National
Legitimate Theatre Committee.
7. It shall be an unfair practice for employers to aid or assist
in the indiscriminate distribution of free passes for attractions.
8. It shall be an unfair practice for employers to aid or assist
in the "throw-away" ticket system under which admission to the
theatre may be secured by presentation of a ticket slip good for a
number of tickets upon payment of a small charge. This provision
shall not apply unless three or more productions are being presented
in direct competition with each other (road shows and try-out
attractions not being productions within the meaning of this
section 8 hereof).
ARTICLE XVII—RELATION OF THE THEATRE TO THE PUBLIC
1. The relation of the theatre to the public should be grounded
on honesty and a policy of fair dealing. The employers, therefore,
reiterate the need of honest and non-discriminatory sale and
distribution of tickets.
2. The employers declare themselves in favor of a sincere and
honest advertising policy.
3. The employers agree not to distort reviews by deletion or
otherwise in their advertising, and give a false impression of what
a critic has said.
4. The employers pledge themselves to adhere to the advertised
time for curtain raising.
ARTICLE XVIII—DECLARATION OF POLICY
1. To eliminate sub-standard and sweatshop conditions in stage
productions, and to assure the patrons that the productions have
been given under proper standards in accordance with the National
Industrial Recovery Act, all such productions shall be advertised
under an N.R.A. label.
2. The employers pledge themselves to cooperate to establish a
uniform standard form of contract with booking agencies for all
legitimate attractions.
3. The employers agree that in all cooperative productions the
minimum wages for all employees shall be those as prescribed in
this Code.
4. The employers agree that, in so far as they can control the
distribution of the same, the motion picture of a currently playing
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legitimate attraction should not be permitted to be released until
such attraction has had the fullest opportunity to complete its run
and enjoy road showing.
5. The employers agree to the employment of actors, except
where they themselves employ such actors directly, through agencies recognized and acceptable to the Actors' Equity Association.
ARTICLE X I X — S P E C I A L T R Y - O U T ATTRACTIONS
Special try-out attractions (known as "summer season companies"
or "winter season companies" as the case may be) are excepted
from the operation of Articles IV, V, VIII, IX, X, XI, and X I I
of this Code. The National Legitimate Theatre Committee shall
consider and recommend provisions embracing the subject matter
of such articles of this Code for such production.
ARTICLE XX—VIOLATIONS
Violations by any persons subject to the publications of this
Code, of any provisions of this Code, or of any approved rule issued
thereunder, or of any agreement entered into by him with the
aforementioned National Legitimate Theatre Committee to observe
and conform to this Code and said rules, is an unfair method of
competition and the offenders shall be subject to the penalties
imposed by the National Industrial Recovery Act.
ARTICLE
XXI—AMENDMENTS
This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provision of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule or regulation, issued under Title I of said Act, and specifically
to the right of the President to cancel or modify his approval of
this Code or any conditions imposed by him upon his approval
thereof.
Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in circumstances or experience may indicate. It is contemplated
t h a t from time to time supplementary provisions to this Code, or
additional Codes, will be submitted for approval of the President
to prevent unfair competition and other unfair destructive competitive practices and to effectuate the other purposes and policies
of Title I of the National Industrial Recovery Act consistent with
the provisions hereof.
THEATRICAL INDUSTRY
137
ARTICLE XXII—SAVING PROVISION
If any court of competent jurisdiction shall finally determine
that any article or section of any article in this Code shall be
invalid, all other articles and sections of this Code shall nevertheless
remain and continue in full force and effect in the same manner
as though they had been separately presented for approval and
approved by the President.
IRON AND STEEL INDUSTRY
EXECUTIVE ORDER
August 19, 1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Gode
of Fair Competition for the Iron and Steel Industry, and hearings
having been held thereon and the Administrator having rendered
his report together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of
clauses (1) and (2) of subsection (a) of Section 3 of the said Act
have been met:
Now, therefore, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title
I of the National Industrial Recovery Act, approved June 16,1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
Code of Fair Competition of the Iron and Steel Industry, as Approved
by President Roosevelt
ARTICLE I—DEFINITIONS
Wherever used in this Code or in any schedule appertaining hereto
the terms hereinafter in this Article and in Schedule E annexed hereto
defined shall, unless the context shall otherwise clearly indicate,
have the respective meanings hereinafter in this article and in such
Schedule E set forth. The definition of any such term in the
singular shall apply to the use of such term in the plural and vice
versa.
IRON AND STEEL INDUSTRY
139
SECTION 1. The term " the United States " means and includes all
of the territory of the United States of America on the North
American continent.
SEC. 2. The term " the President " means the President of the
United States of America.
SEC. 3. The term " products " means only pig iron, iron or steel
ingots, and the rolled or drawn iron or steel products which are
generally named in Schedule F to the Code as at the time in effect
and standard Tee rails of more than 60 pounds per yard, angle
bars and rail joints, or any of such products.
SEC. 4. The term " the Industry " means and includes the business
of producing in the United States and selling products, or any of
them.
S E C 5. The term " member of the Industry " means and includes
any person, firm, association or corporation operating a plant or
plants in the United States for the production of products, or any
of them.
SEC. 6. The term " the Code " means and includes this Code and
all schedules annexed hereto as originally approved by the President
and all amendments hereof and thereof made as hereinafter in
Article XII provided.
S E C 7. The term " member of the Code " means any member of
the Industry who shall have become a member of the Code as
hereinafter in Section 3 of Article III provided.
S E C 8. The term " the Institute " means American Iron and
Steel Institute, a New York membership corporation.
S E C 9. The term " the Board of Directors " means the Board of
Directors (as from time to time constituted) of the Institute.
SEC 10. The term " the Secretary " means the secretary of the
Institute at the time in office.
SEC 11. The term " the Treasurer " means the treasurer of the
Institute at the time in office.
SEC 12. The term " unfair practice " means and includes any
act described as an unfair practice in Schedule H annexed hereto.
SEC 13. Wherever used in the Code with reference to the Industry
or any member of the Industry or any member of the Code, unless
the context shall otherwise clearly indicate:
(a) The term " plant " means only a plant for the production of
one or more products in the Industry;
(b) The term " prices " includes only prices for products produced in the Industry;
(c) The term " wages " indues only wages for labor performed
in the Industry;
(d) The term " labor " means only labor performed in the
Industry;
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(e) The term " hours of labor " or " hours of work " includes
only hours of labor or hours of work in the Industry ; and
(/) The term " employee " means only an employee in the
Industry.
SEC. 14 The term " the National Industrial Recovery Act "
means the National Industrial Recovery Act as approved by the
President, June 16, 1933.
SEC. 15. The term " the effective date of the Code " means the
date on which the Code shall have been approved by the President
pursuant to the National Industrial Recovery Act.
SEC. 16. The term " the Administrator " means the Administrator appointed by the President under the National Industrial
Recovery Act and at the time in office.
SEC. 17. The term " the Administration " means the agency
established pursuant to the provisions of Section 2 of the National
Industrial Recovery Act.
ARTICLE I I — P U R P O S E OF THE CODE
SECTION 1. The Code is adopted pursuant to Title I of the
National Industrial Recovery Act.
SEC. 2. The purpose of the Code is to effectuate the policy of
Title I of the National Industrial Recovery Act insofar as it is
applicable to the Industry.
ARTICLE I I I — M E M B E R S H I P IN THE CODE
SECTION 1. It is of the essence of the Code t h a t all members of
the Industry which shall comply with the provisions of the Code
shall be entitled to participate in its benefits upon the terms and
conditions set forth in the Code.
SEC. 2. Any member of the Industry is eligible for membership
in the Code.
SEC. 3. Any member of the Industry desiring to become a member
of the Code may do so by signing and delivering to the Secretary a
letter substantially in the form set forth in Schedule A annexed
hereto.
SEC. 4. The rules and regulations in respect of meetings of members of the Code are set forth in Schedule B annexed hereto.
ARTICLE
I V — H O U R S OF LABOR, R A T E S OF P A Y , AND OTHER
CONDITIONS OF EMPLOYMENT.
SECTION 1. Pursuant to subsection (a) of Section 7 of the National
Industrial Recovery Act and so long as the Code shall be in effect,
the Code shall be subject to the following conditions:
IRON AND STEEL INDUSTRY
141
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
(2) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
Sec. 2. Since the beginning of the present depression and the
consequent reduction in the total number of hours of work available
in the Industry, its members have made every effort to distribute,
and with a remarkable degree of success have distributed, the hours
of work available in their plants so as to give employment to the
maximum number of employees. It is the intention of the Industry
to continue that policy insofar as practicable, to the end that the
policy of Title I of the National Industrial Recovery Act may be
effectuated, and that work in the Industry shall insofar as practicable be distributed so as to provide employment for the employees
normally attached to the Industry. The basic processes in the
Industry are of a continuous character and they cannot be changed
in this respect without serious adverse effect upon production and
employment. As demand for the products of the industry and,
therefore, for labor shall increase, hours of labor for employees in
the Industry must necessarily increase; but, except in the case of
executives, those employed in supervisory capacities and in technical
work and their respective staffs and those employed in emergency
work, insofar as practicable and so long as employees qualified for
the work required shall be available in the respective localities
where such work shall be required and having due regard for the
varying demands of the consuming and processing industries for
the respective products, none of the members of the Code shall
cause or permit any employee to work at an average of more than
40 hours per week in any six months' period or to work more than
48 hours or more than 6 days in any one week. On or after
November 1, 1933, as soon as the members of the Code shall be
operating at 60% of capacity, they shall adjust the operations of
their plants so that, except as to executives, those employed in
supervisory capacities and in technical work and their respective
staffs and those employed in emergency work, they will establish
the 8-hour day for all their employees. For the purposes of this
Section 2 the first six months' period for each employee in the
employ of any member of the Code at the effective date thereof
shall begin with that date, and the first six months period for any
employee thereafter employed by any member of the Code shall
begin with the date of employment of such employee by such
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CODES
member. After the date of the employment by any member of the
Code of any employee such member shall not knowingly permit
such employee who also shall have performed work for one or more
other employers to work for such member such number of hours
as would result in a violation of the Code had all such work been
performed for such member.
SEC. 3. None of the members of the Code shall employ in or about
its plants in the Industry any person under 16 years of age.
SEC. 4. Throughout the history of the Industry geographical wage
differentials have existed, due in the main to differences in living
costs and general economic conditions and the ability adequately
to man the industries in the respective localities. The establishments in the Industry in the different localities have been developed
under such differences in wages and, after a survey of the matters
bearing on such differences in the various sections of the United
States, for the purposes of this Article IV the wage districts
described in Schedule C annexed hereto have been established.
SEC. 5. Until changed by amendment of the Code as hereinafter
in Article XII provided, the minimum rates of pay per hour which
shall be paid by members of the Code for common labor (not including that of apprentices and learners) in the Industry in the respective
wage districts described in such Schedule C shall be the rates set
forth in Schedule D annexed hereto. None of the members of the
Code shall pay common laborers (not including apprentices and
learners) in its employ in the Industry in any such district any rate
of pay less than the rate specified for such district in such Schedule
D, and any violation of this provision of the Code shall be deemed
an unfair practice. Such rates of pay shall not, however, be understood to be the maximum rates of pay for their respective districts,
but, until changed as aforesaid, none of the members of the Code
shall be required to pay its common laborers in the Industry in any
of such districts a rate of pay higher than the rate specified for such
district in such Schedule D, except as such member shall have agreed
to pay such higher rate in any agreement heretofore or hereafter
made by such member with its employees. Until this provision
shall have been changed by amendment as aforesaid, each member of
the Code will pay to each of its employees in the Industry who on
July 14, 1933, was receiving pay at a rate of pay per hour in excess
of the rate of pay per hour then being paid by such member for
common labor a rate of pay per hour which shall be at least 15 per
cent, greater than that which such employee was then receiving;
provided, however, that the foregoing provision shall not be so
construed as to require any member of the Code to make any
increase in the rate of pay per hour to be paid by such member to
any of its employees in any wage district that will result in a rate
of pay per hour which shall be higher than the rate of pay per hour
paid to employees doing substantially the same class or kind of
labor in the same wage district by any other member of the Code
which shall have increased its rates of pay per hour in accordance
IRON AND STEEL INDUSTRY
143
with such provision. In the case of employees (not including
apprentices and learners) performing work for which they are paid
per piece of work performed, the minimum rate of pay which each
member of the Code shall pay for such work shall be sufficient to
produce at the average rate of performance of such work at the
time prevailing at the plant of such member where such work is
performed the minimum rate of pay per hour provided in the
Code for common labor at such plant.
ARTICLE V—PRODUCTION
AND N E W CAPACITY
SECTION 1. It is the consensus of opinion in the Industry that it
is not necessary, in order to effectuate the policy of Title I of the
National Industrial Recovery Act, to make any specific provision in
the Code for controlling or regulating the volume of production in
the Industry or for allocating production or sales among its members.
It is believed that the elimination of unfair practices in the Industry
will automatically eliminate any overproduction therein and any
alleged inequities in the distribution of production and sales among
its members. Adequate provision shall be made under the Code for
the collection of statistics regarding production and of other data
from which it may be determined from time to time whether overproduction in the Industry exists and whether in the circumstances
any restriction of production is necessary in order to effectuate the
policy of Title I. The Board of Directors shall furnish to the
Administrator summaries or compilations of such statistics and
other data in reasonable detail. Should it at any time in the
circumstances as they shall then exist appear to the Board of
Directors t h a t the policy of such Title I will not be effectuated in
the Industry because of the fact t h a t through the Code production
therein is not controlled and regulated, then the Board of Directors
is hereby empowered, subject to the approval of the President,
after such conference with or hearing of interested persons as he may
prescribe, to make, modify, or rescind such rules and regulations for
the purpose of controlling and regulating production in the Industry,
including the fixing of such liquidated damages for violations of
such rules and regulations, as such Board shall deem to be necessary
or proper in order to effectuate the policy of such Title I. All such
rules and regulations from time to time so made and in effect shall
be binding upon each member of the Code to which notice thereof
shall have been given.
SEC. 2 It is also the consensus of opinion in the Industry that,
until such time as the demand for its products cannot adequately
be met by the fullest possible use of existing capacities for producing
pig iron and steel ingots, such capacities should not be increased.
Accordingly, unless and until the Code shall have been amended as
hereinafter provided so as to permit it, none of the members of the
Code shall initiate the construction of any new blast furnace or
open hearth or Bessemer steel capacity. The President may,
however, suspend the operation of the provisions of this section.
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ARTICLE VI—ADMINISTRATION OF THE CODE
SECTION 1. The administration of the Code shall be under the
direction of the Board of Directors. The Board of Directors shall
have all the powers and duties conferred upon it by the Code and
generally all such other powers and duties as shall be necessary or
proper to enable it fully to administer the Code and to effectuate
its purpose.
SEC. 2. The Secretary shall act as Secretary under the Code.
Under the direction of the Board of Directors, he shall keep all
books (except books of account) and records under the Code and,
except as such Board shall otherwise provide, shall collect, file,
and collate all statistics and other information required by the Board
of Directors for the proper administration of the Code.
S E C 3. The Treasurer shall act as Treasurer under the Code and,
under the direction of the Board of Directors, he shall have custody
of, and have charge of the disposition of, all funds collected under
the Code; and he shall keep proper books of account showing the
collection and disposition thereof.
S E C 4. The Board of Directors shall have power from time to
time (a) to appoint and remove, and to fix the compensation of, all
such other officers and employees and all such accountants, attorneys, and experts as the said Board shall deem necessary or
proper for the purpose of administering the Code and (b) to fix the
compensation of the Secretary and the Treasurer for their services
in acting under the Code.
SEC. 5. The expenses of administering the Code shall be borne by
the members thereof. The Board of Directors may from time to
time make such assessments on account of such expenses against
the members of the Code as it shall deem proper, and such assessments shall be payable as such Board shall specify. The part of
such expenses which shall be assessed against each member of the
Code shall bear the same relation to the total thereof as the number
of votes which, pursuant to the provisions of the Code, such member
might cast at a meeting of the members thereof held at the time of
any such assessment shall bear to the total number of votes that
might be cast thereat by all the then members of the Code. Failure
of any member of the Code to pay the amount of any assessment
against such member for a period of thirty days after the date on
which it became payable shall constitute a violation of the Code.
SEC. 6. The Board of Directors may from time to time appoint
such committees as it shall deem necessary or proper in order to
effectuate the purpose of the Code, and it may delegate to any such
committee generally or in particular instances such of the powers and
duties of the Board of Directors under the Code as such Board shall
deem necessary or proper in order to effectuate such purpose. Any
member of any such committee may be a member of the Board of
Directors or an officer or a director of a member of the Code or a
IRON AND STEEL INDUSTRY
145
person not having any official connection with any member of the
Code or with the Institute, as the Board of Directors shall deem
proper.
SEC. 7. The members of the Code recognize that questions of
public interest are or may be involved in its administration.
Accordingly, representatives of the Administration consisting of
the Administrator and one or two other persons appointed by him
(who shall be persons not having or representing interests antagonistic to the interests of members of the Industry) shall be given
full opportunity at such times as shall be reasonably convenient
to discuss with the Board of Directors or any committees thereof
any matters relating to the administration of the Code and to
attend meetings of the Board at which action on any such matters
shall be undertaken and to make recommendations as to methods
or measures of administering the Code. Due notice of all such
meetings of the Board of Directors shall be given to such representatives of the Administration. The records of the Board of Directors relating in any way to the administration of the Code shall be
open to such representatives at all reasonable times. They shall be
afforded by the Board of Directors complete access at all times to
all records, statistical material, or other information furnished or
readily available to the Board of Directors in connection with, or
for the purposes of, the administration of the Code. The Board
of Directors, acting directly or through one or more committees
appointed by it, shall give due consideration to all requests or
recommendations made by such representatives of the Administration and render every possible assistance to such representatives
in obtaining full information concerning the operation and administration of the Code, to the end that the President may be fully
advised regarding such operation and administration through
reports that may be made to him from time to time by such representatives, and to the end that the President may be assured that the
Code and the administration thereof do not promote or permit
monopolies or monopolistic practices, or eliminate or oppress
small enterprises, or operate to discriminate against them and to
provide adequate protection of consumers, competitors, employees,
and others concerned and that they are in furtherance of the public
interest and operate to effectuate the purposes of Title I of the
National Industrial Recovery Act.
ARTICLE VII—PRICES AND TERMS OF PAYMENT
None of the members of the Code shall make any sale of any
product at a price or on terms and conditions more favorable to the
purchaser thereof than the price, terms, or conditions established by
such member in accordance with the provisions of Schedule E
annexed hereto and in effect at the time of such sale ; nor, except as
otherwise provided in such Schedule E, shall any member of the
Code make any contract of sale of any product at a price or on
10
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terms and conditions more favorable to the purchaser thereof than
the price, terms and conditions established as aforesaid and in
effect at the time of the making of such contract of sale.
ARTICLE VIII—UNFAIR PRACTICES
For all purposes of the Code the acts described in Schedule H
annexed hereto shall constitute unfair practices. Such unfair
practices and all other practices which shall be declared to be unfair
practices by the Board of Directors as provided in paragraph M of
such Schedule H or by any amendment to the Code adopted as hereinafter in Article XII provided and at the time in effect, shall be
deemed to be unfair methods of competition in commerce within
the meaning of the Federal Trade Commission Act, as amended,
and the using or employing of any of them shall be deemed to be a
violation of the Code, and any member of the Industry which shall
directly or indirectly, through any officer, employee, agent, or representative, knowingly use or employ any of such unfair practices,
shall be guilty of a violation of the Code.
ARTICLE IX—REPORTS AND STATISTICS
SECTION 1. The Board of Directors shall have power from time to
time to require each member of the Code to furnish to the Secretary
for the use of the Board of Directors such information concerning
the production, shipments, sales, and unfilled orders of such member
and the hours of labor, rates of pay, and other conditions of employment at the plant or plants of such member and such other information as the Board of Directors shall deem necessary or proper in
order to effectuate the purpose of the Code and the policy of Title I
of the National Industrial Recovery Act. The Board of Directors
may require that any such information be furnished periodically
at such times as it shall specify and may require that any or all
information furnished be sworn to or otherwise certified or authenticated as it shall prescribe. Failure of any member of the Code
promptly to furnish to the Secretary information required by the
Board of Directors and substantially in the form prescribed by it,
shall constitute a violation of the Code. The Board of Directors
shall not require any information regarding trade secrets or the
names of the customers of any member of the Code.
S E C 2. Any or all information furnished to the Secretary by any
member of the Code shall be subject to checking for the purpose of
verifications by an examination of the books and accounts and
records of such member by any accountant or accountants or other
person or persons designated by the Board of Directors, and shall
be so checked for such purpose if the Board of Directors shall require
it. The cost of such examination shall be treated as an expense of
administering the Code; provided, however, that, if upon such
IRON AND STEEL INDUSTRY
147
examination any such information shall be shown to have been
incorrect in any material respect, such cost shall be paid by the
member of the Code which furnished such information.
SEC. 3. The Board of Directors shall require the members of the
Code from time to time to furnish such information as shall be
necessary for the proper administration of the Code.
SEC. 4. To the extent that the Board of Directors may deem that
any information furnished to the Secretary in accordance with the
provisions of the Code is of a confidential character in the interest
of the member of the Code which shall have furnished it and that the
publication thereof is not essential in order to effectuate the policy
of Title I of the National Industrial Recovery Act, such information
shall be treated by the Board of Directors and by the other members
of the Code, if any knowledge of it shall have come to them, as
strictly confidential ; and no publication thereof to anyone or in any
manner shall be made other than in combination with similar
information furnished by other members of the Code, in which case
the publication shall be made only in such manner as will avoid the
disclosing separately of such confidential information.
SEC. 5 Summaries or compilations in reasonable detail of all
information which shall be furnished to the Secretary pursuant to
the provisions of this Article IX shall be made periodically and sent
to the Administrator.
ARTICLE X—PENALTIES AND DAMAGES
SECTION 1. Any violation of any provision of the Code by any
member of the Industry shall constitute a violation of the Code
by such member.
SEC. 2. Recognizing that the violation by any member of the Code
of any provision of Article VII or of Schedule E of the Code will
disrupt the normal course of fair competition in the Industry and
cause serious damage to other members of the Code and that it will
be impossible fairly to assess the amount of such damage to any
member of the Code, it is hereby agreed by and among all members
of the Code that each member of the Code which shall violate any
such provision shall pay to the Treasurer as an individual and not
as treasurer of the Institute, in trust, as and for liquidated damages
the sum of $10 per ton of any products sold by such member in violation of any such provision.
SEC. 3. Except in cases for which liquidated damages are fixed in
the Code and in cases which shall rise to actions in tort in favor
of one or more members of the Code for damages suffered by it or
them, the Board of Directors shall have power from time to time to
establish the amount of liquidated damages payable by any member
of the Code upon the commission by such member of any act constituting an unfair practice under the Code and a list of the amounts
so fixed shall from time to time be filed with the Secretary. Upon
148
TEXTS OF CODES
the commission by any member of the Code of any act constituting
an unfair practice under the Code and for which liquidated damages
are not fixed in the Code or which does not give rise to an action in
tort in favor of one or more members of the Code for damages
suffered by it or them, such member shall become liable to pay to the
Treasurer as an individual and not as treasurer of the Institute, in
trust, liquidated damages in the amount at the time established by
the Board of Directors for such unfair practice and specified in the
list then on file with the Secretary as aforesaid.
SEC. 4. All amounts so paid to or collected by the Treasurer under
this Article X or under Section 4 of Schedule E of the Code shall be
held and disposed of by him as part of the funds collected under the
Code, and each member of the Code not guilty of the unfair practice
in respect of which any such amount shall have been paid or collected
shall be credited with its pro rata share of such amount on account of
any and all assessments (other than damages for violation of any
provision of the Code) due or to become due from such member under
the Code, or in the case of any excess, as shall be determined by the
Board of Directors, such pro rata share to be computed on the same
basis as the last previous assessment made against such member on
account of the expenses of administering the Code as hereinbefore in
Section 5 of Article VI provided. All rights of any person who shall
at any time be the Treasurer in respect of any amounts which shall
be payable to him because of the commission by any member of the
Code of any act constituting an unfair practice under the Code,
whether payable under the provisions of this Article X or under any
other provision of the Code, shall pass to and become vested in his
successor in office upon the appointment of such successor.
SEC. 5. Each member of the Code by becoming such member
agrees with every other member thereof that the Code constitutes
a valid and binding contract by and among all members of the Code,
subject, however, to the provisions of Section 6 of Article XI, and
that, in addition to all penalties and liabilities imposed by statute,
any violation of any provision of the Code by any member thereof
shall constitute a breach of such contract and shall subject the
member guilty of such violation to liability for liquidated damages
pursuant to the provisions of the Code. Each member of the Code by
becoming such member thereby assigns, transfers, and delivers to
the Treasurer as an individual and not as treasurer of the Institute,
in trust, all rights and causes of action whatsoever which shall
thereafter accrue to such member under the Code for such liquidated
damages by reason of any violation of the Code by any other member thereof, and thereby designates and appoints the Treasurer as
such individual the true and lawful attorney in fact of such member
to demand, sue for, collect, and receipt for any and all amounts
which shall be owing to such member in respect of any such right
or cause of action, and to compromise, settle, satisfy, and discharge
any such right or cause of action, all in the name of such member
or in the name of the Treasurer individually, as he shall elect.
IRON AND STEEL INDUSTRY
149
SEC. 6. Anything in the Code to the contrary notwithstanding, the
Board of Directors by the affirmative vote of two thirds of the whole
Board may waive any liability for liquidated damages imposed by or
pursuant to any provisions of the Code for any violation of any provision thereof, if in its discretion it shall decide that such violation
was innocently made and that the collection of such damages will not
to any material extent tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
ARTICLE XI—GENERAL PROVISIONS
SECTION 1. Any notice, demand, or request required or permitted
to be given to or made upon any member of the Code shall be
sufficiently given if mailed postage prepaid addressed to such member at the address of such member on file with the Secretary. A
waiver in writing signed by any member of the Code of any such
notice, demand, or request and delivered to the Secretary shall be
deemed to be the equivalent of a notice, demand, or request duly
given or made, whether or not such waiver was signed and delivered
before the time when such notice, demand, or request was required
or permitted to be given or made.
SEC. 2. Nothing contained in the Code shall be deemed to constitute the members of the Code partners for any purpose. None of
the members of the Code shall be liable in any manner to anyone for
any act of any other member of the Code or for any act of the Board
of Directors, the Treasurer or the Secretary, or any committee,
officer, or employee appointed under the Code None of the members
of the Board of Directors or of any committee appointed under the
Code, nor the Treasurer, nor the Secretary, nor any officer or
employee appointed under the Code, shall be liable to any one for any
action or omission to act under the Code, except for his wilful
misfeasance or nonfeasance Nothing contained in the Code shall
be deemed to confer upon anyone other than a member of the Code
any right, claim, or demand whatsoever not expressly provided
by statute against any member of the Code or against any member
of the Board of Directors or of any committee appointed under the
Code or against the Treasurer or the Secretary or any officer or
employee appointed under the Code.
SEC. 3. As soon as members of the Industry which would, if then
members of the Code, have the right to cast at least 75 % of all the
votes that might be cast at a meeting of the members of the Code, if
all members of the Industry were then members of the Code and
present at such meeting, shall sign and deliver to the Secretary
letters substantially in the form set forth in Schedule A annexed
hereto, the Board of Director shall submit the Code to the President
pursuant to the provisions of Title I of the National Industrial
Recovery Act and, upon the approval of the Code by the President
pursuant to the provisions of such Title I, it shall constitute a
binding contract by and among the members of the Code and the
150
TEXTS OF CODES
provisions thereof shall be the standards of fair competition for the
Industry; subject, however, to amendment or termination as
hereinafter in Article XII provided, and subject also to the provisions of Section 6 of this Article XI.
SEC. 4. To the extent required or made possible by or under the
provision of Title I of the National Industrial Recovery Act the provisions of the Code shall apply to and be binding upon every member
of the Industry whether or not such member shall be a member of
the Code. No member of the Industry which shall not also be a
member of the Code shall be entitled to vote at any meeting of members of the Code or to any other right, power, or privilege provided
in the Code for the members thereof.
SEC. 5. The Board of Directors shall have power from time to
time to interpret and construe the provisions of the Code, including,
but without any limitation upon the foregoing, the power to determine what are products within the meaning of that term as it is used
in the Code. Any interpretation or construction placed upon the
Code by the Board of Directors shall be final and conclusive upon
all members of the Code.
SEC. 6. The members of the Code recognize that, pursuant to subsection (b) of Section 10 of the National Industrial Recovery Act,
the President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said ActARTICLE XII—AMENDMENTS—TERMINATION
SECTION 1. The Code may be amended at any time in the manner
in this Section 1 provided. The changing of any schedule hereto or
the addition hereto of any new schedule shall constitute an amendment of the Code. All amendments shall be proposed by the Board
of Directors by vote of the majority of the members thereof at the
time in onice. Each amendment so proposed shall be submitted to
a meeting of the members of the Code which shall be called for such
purpose upon notice given in accordance with the provisions of Section 1 of Schedule B and Section 1 of Article XI of the Code. If at
such meeting members of the Code having the right to cast at least
75 % of all the votes that might be cast at such meeting, if all the
members of the Code were present thereat, shall vote in favor of the
adoption of such amendment, such amendment shall be submitted
by the Board of Directors to the President for approval, if approval
thereof by him shall then be required by law. Every such amendment shall take effect as a part of the Code upon the adoption thereof
by the members of the Code as above provided and the approval
thereof by the President, if approval thereof by him shall be required
as aforesaid.
S E C 2. The Code shall continue in effect for a period of ninety
(90) days after the effective date thereof in order to afford to the
President an opportunity to determine upon the recommendations
IRON AND STEEL INDUSTRY
151
of the representatives of the Administration, for which provision has
heretofore been made in Article VI, whether its provisions will effectuate the purposes of Title I of the National Industrial Recovery
Act, as further defined in said Article VI, subject, however, to
amendment at any time as hereinbefore provided, and also subject
to the reserved power of the President to cancel or modify his
approval thereof. The Code shall continue in effect after the
expiration of said period of ninety (90) days in the absence of the
exercise of such reserved power on the part of the President, or in
the absence of the exercise by members of the Code of the power
which they hereby reserve to terminate the Code at any time after
the expiration of said period of ninety (90) days by the same
action by them as is above provided for the amendment thereof.
When so terminated all obligations and liabilities under the Code
shall cease, except those for unpaid assessments theretofore made
in accordance with the provisions of the Code and those for
liquidated damages theretofore accrued under any provision of the
Code.
August 17, 1933.
SCHEDULE A
FORM OF LETTER OF ASSENT TO THE CODE
To the Secretary of American Iron and Steel Institute, Empire State Building,
New York, N. Y.
DEAR SIR: The undersigned, desiring to become a member of the Code of
Fair Competition of the iron and steel industry, a copy of which is annexed
hereto marked Annex A, hereby assents to all of the provisions of said Code
(hereinafter referred to as the Code), and, effective as of the date on which the
Code shall have been approved by the President of the United States of America as therein provided, or as of the date on which this letter shall have been
delivered, if delivery thereof shall have been made subsequent to the date of
which the Code shall have been approved by said President as aforesaid, by the
signing and delivery of this letter becomes a member of the Code and effective
as aforesaid hereby agrees with every person, firm, association, and corporation
who shall then be or thereafter become a member of the Code that the Code
shall constitute a valid and binding contract between the undersigned and all
such other members.
Effective as aforesaid, pursuant to Section 5 of Article X of said Code, the
undersigned (a) hereby assigns, transfers and delivers to the Treasurer under
the Code, as an individual and not as treasurer of American Iron and Steel
Institute, in trust, all rights and causes of action whatsoever hereafter accruing
o the undersigned under the Code for liquidated damages by reason of any
v olation thereof by anyone, and (b) hereby designates and appoints said
Treasurer as such individual the "true and lawful attorney in fact of the undersigned, to demand, sue for, collect, and receipt for any and all amounts which
shall be owing to the undersigned in respect of any such right or cause of action,
and to compromise, settle, satisfy, and discharge any such right or cause of
action, all in the name of the undersigned or in the name of said Treasurer,
as said Treasurer shall elect.
For all purposes of Section 1 of Article XI of the Code the address of the
undersigned, until it shall file with the Secretary of American Iron and Steel
Institute written notice of a change of such address, shall be as set forth at the
foot of this letter.
Very truly yours,
152
TEXTS OF
CODES
SCHEDULE B
THE
R U L E S AND REGULATIONS IN R E S P E C T OF M E E T I N G S OF
MEMBERS OF THE CODE
SECTION 1. A meeting of members of the Code may be called and held at any
time by order of the Board of Directors, or by members of the Code having the
right to cast at least 50% of all votes that might be cast at such meetings if
all the members of the Code were present thereat, on not less than three days'
notice to each of such members stating the time and place of such meeting and
the purposes thereof.
SEC. 2. At each meeting of the members of the Code each member thereof
shall have as many votes as shall equal the quotient obtained by dividing by
500,000 the aggregate amount in dollars of the invoiced value of the products
delivered by such member for consumption within the United States during the
preceding calendar year. Fractions in such quotient shall be disregarded ; provided, however, that each member of the Code shall have at least one vote. All
questions as to the number of votes which each member of the Code shall be entitled to cast at any meeting of the members thereof shall be determined by the
Board of Directors. Any person or firm who shall be a member of the Code may,
and any association or corporation which shall be a member of the Code shall,
vote at meetings of the members of the Code by proxy in writing duly executed
by such member and filed with the Secretary. Any such proxy may be for a
specified meeting or be a general proxy for any or all meetings that may be held
until such proxy shall have been revoked by an instrument in writing duly executed by the member of the Code which gave such proxy and filed with the
Secretary.
S E C 3. At each meeting of the members of the Code, members thereof
having the right to cast at least 75% of all the votes that might be cast at such
meeting, if all the members of the Code were present thereat, shall constitute
a quorum for the transaction of business at such meeting.
SCHEDULE C
DESCRIPTION OF W A G E DISTRICTS
1. Eastern District.—Comprises that part of the United States which is north
of the State of Virginia and east of a line drawn north and south through the
most easterly point of Altoona, Pennsylvania; that part of the State of Maryland which is west of such line ; and the Counties of Monongalia, Marion, and
Harrison in the State of West Virginia.
2. Johnstown District.—Comprises Cambria County and the City of Altoona
in the State of Pennsylvania.
3. Pittsburgh District.—Comprises the Counties of Westmoreland, Fayette,
Greene, Washington, Allegheny, Beaver, Butler, Armstrong, and Jefferson and
that part of the County of Clearfield which is west of a line drawn north and
south through the most easterly point of Altoona, all in the State of Pennsylvania.
4. Youngstown Valley District.—Comprises the Counties of Lawrence, Mercer,
and Venango in the State of Pennsylvania and the Counties of Trumbull, Mahoning, and Columbiana in the State of Ohio.
5. North Ohio River District.—Comprises »the cities along the Ohio River
north of the City of Parkersburg, West Virginia, and the Counties of Belmont
and Jefferson in the State of Ohio and the Counties of Marshall, Ohio, Brook, and
Hancock in the State of West Virginia.
6. Canton, Massillon, and Mansfield District.—Comprises the Counties of
Stark, Tuscarawas, Summit, and Richland in the State of Ohio.
7. Cleveland District.—Comprises the Counties of Ashtabula, Lake, Cuyahoga,
and Lorain in the State of Ohio.
8. Buffalo District.—Comprises that part of the State of New York west of a
line drawn north and south through the most easterly point of Altoona, Pennsylvania, and Erie County in that State.
IRON AND STEEL INDUSTRY
153
9. Detroit-Toledo District.—Comprises the Counties of Seneca and Lucas in
the State of Ohio and the Counties of Monroe, Lenawee, Jackson, Wayne,
Oakland, Macomb, and Washtenaw in the State of Michigan.
10. South Ohio River District.—Comprises the State of Kentucky, the City of
Parkersburg, W.Va., the cities along the Ohio River south of said City, "the
Counties of Guernsey, Muskingum, Jackson, and Butler in the State of Ohio
and the County of Wood in the State of West Virginia.
11. Indiana-Illinois-St. Louis District.—Comprises all the State of Indiana,
except the County of Lake ; all the State of Illinois, except the Counties of Lake
and Du Page and the Chicago Switching District; the City of St. Louis and the
County of St. Louis in the State of Missouri ; and the County of Rock in the State
of Wisconsin.
12. Chicago District.—Comprises the Chicago Switching District; the Counties
of Lake and Du Page in the State of Illinois; the County of Lake in the State of
Indiana; and the Counties of Kenosha, Racine, and Milwaukee in the State of
Wisconsin.
13. Southern District.—Comprises all that part of the United States south of
the States of Maryland, West Virginia, Kentucky, and Missouri, and the States
of Texas and Oklahoma, but does not include the County of Jefferson in the
State of Alabama.
14. Birmingham District.—Comprises the County of Jefferson in the State of
Alabama.
15. Kansas City District.—Comprises the County of Jackson in the State of
Missouri.
16. Duluth District.—Comprises the County of St. Louis in the State of
Minnesota.
17. Colorado District.—Comprises the State of Colorado.
18. Utah District.—Comprises the State of Utah.
19. Seattle District.—Comprises the County of King in the State of Washington and the County of Multnomah in the State of Oregon.
20. San Francisco District.—Comprises the Counties of San Mateo, Alameda,
Sacramento, and Contra Costa in the State of California.
21. Los Angeles District.—Comprises the County of Los Angeles in the State
of California.
SCHEDULE D
MINIMUM RATES OF PAY FOR COMMON LABOR
Per hour
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Eastern District
Johnstown District
Pittsburgh District
Youngstown Valley District
North Ohio River District
Canton, Massillon, and Mansfield District
Cleveland District
Buffalo District
Detroit-Toledo District
South Ohio River District
Indiana-Illinois-St. Louis District
Chicago District
Southern District
Birmingham District
Kansas City District
Duluth District
Colorado District
Utah District
Seattle District
San Francisco District
Los Angeles District
$0.35
37
40
40
40
37
40
38
40
37
37
40
25
27
35
37
40
39
38
37
35
154
TEXTS OF CODES
SCHEDULE E
CONCERNING PRICES AND TERMS OF PAYMENT
SECTION 1. Wherever used in the Code the terms hereinafter in this Section
1 defined shall, unless the context shall otherwise clearly indicate, have the
respective meanings hereinafter in this Section 1 set forth. The definition of
any such term in the singular shall apply to the use of such term in the plural
and vice versa.
(a) Until Schedule F of this Code shall have been amended as in Article XII
of the Code provided, the term " basing point " for any product means one of the
places listed in such Schedule F as a basing point for such product. Thereafter
the term shall mean one of the places listed in such Schedule F as at the time in
effect as a basing point for such product.
(b) The term " base price " of any product means the price for such product
f.o.b. a basing point, before any extras in respect of such product shall be added
or any discounts for early payment or deductions shall be allowed or made.
(c) The term " period of free credit " means the period of time between the
date of a shipment of a product to the purchaser of such product and the date
from and after which such purchaser shall be required to pay interest on the
purchase price of such product or any part thereof which shall not have been
paid prior to the expiration of such period.
(d) The term " date of invoice " means the date of the invoice of any product.
(e) The term " discount for early payment " means the amount of the
deduction allowed for the payment of an invoice of products before the expiration of the period of free credit in respect thereof.
(/) The term " an affiliated group " means one or more corporations connected through stock ownership with a common parent corporation, if (1) at least
75 % of the stock of each of such corporations (except such common parent
corporation) is owned directly by one or more of the other corporations, and
(2) such common parent corporation owns directly at least 75 % of the stock
of at least one of the other corporations. The term " an affiliated company of a
member of the Code " means (1) a corporation which is one of an affiliated
group that also includes such member of the Code, or (2), in case the member
of the Code is a person, firm, or association, a corporation at least 75 % of the
stock of which is owned by such member. For the purposes of this paragraph (/)
the term " stock " does not include nonvoting stock which is limited and
preferred as to dividends.
SEC. 2. Each member of the Code shall, within ten days after the effective
date of the Code, file with the Secretary a list showing the base prices for all its
products, and from and after the expiration of such ten days such member shall
at all times maintain on file with the Secretary a list showing the base prices for
all its products and shall not make any change in such, base prices except as
provided in this Schedule E. Each such list shall state the date upon which it
shall become effective, which date shall be not less than ten days after the date
of filing such list with the Secretary; provided, however, that the first list of
base prices filed by any member of the Code as above provided shall take effect
on the date of filing thereof. None of the base prices shown in any list filed by any
member of the Code as herein provided shall be changed except by the filing by
such member with the Secretary of a new list of its base prices, which shall
become effective on the effective date therein specified which shall not be less
than ten days after the date on which such new price list shall have been so filed.
In the case of pipe of sizes or kinds which are sold on a list and discount basis,
for the purposes of this Section 2 the list of base prices shall consist of a price list
and one or more basing discount lists, from which the base prices of such pipe
shall be determined ; provided, however, that in the case of oil country tubular
goods there shall be filed in lieu of a list of base prices a price list and one
or more basing discount lists from which the delivered prices of such goods
shall be determined.
S E C 3. Except as hereinafter otherwise provided in respect of standard Tee
rails of more than 60 pounds per yard, angle bars, and rail joints, the base price
for any product shown in any list of base prices filed by a member of the Code
IRON AND STEEL INDUSTRY
155
in accordance with the provisions of the foregoing Section 2 shall be as follows :
(a) If such member shall operate a plant for the production of such product
which is located at a basing point for such product, f.o.b. such basing point, or
{b) if such member shall operate a plant for the production of such product
which is not located at a basing point for such product, f.o.b. the basing point
for such product nearest in terms of all-rail freight rates to such plant, or (c) if
any Gulf or Pacific Coast port shall be listed as a basing point in Schedule F
of the Code as at the time in effect, f.o.b. cars dock such port. Except as otherwise provided in this Schedule E, each member of the Code shall file with the
Secretary and maintain on file with him a list showing the base price for each
of its products for each basing point for such product at which a plant of such
member for the manufacture of such product shall be located and for each
basing point for such product which shall be nearest in terms of all-rail freight
rates to any plant of such member for the manufacture of such product not
located at a basing point for such product; and if any Gulf or Pacific Coast port
shall be listed in such Schedule F as a basing point for a product, such member
may show in such list its base price for such product at such basing point.
All base prices shown in the list so filed shall constitute the published base
prices of such member for the products and for the basing points shown in such
list. Except as aforesaid, none of the members of the Code shall file any list
of base prices showing any price for any of its products other than the base
price for such product f.o.b. the basing point or basing points for such products
as hereinbefore provided. The published base price of each such member for
any product (except standard Tee rails of more than 60 pounds per yard,
angle bars, and rail joints) for any basing point for such product other than that
or those shown in the list of base prices so filed by such member shall be deemed
to be the lowest base price for such product at such other basing point which
shall be shown in the list of base prices filed by any other member of the Code
and then in effect. All base prices for standard Tee rails of more than 60 pounds
per yard and all base prices for angle bars and rail joints shall be f.o.b. mill
of the producer thereof, or, in the case of rails, angle bars, and rail joints
carried by water from any Atlantic Coast or Gulf port to any Gulf or Pacific
Coast port, c.i.f. the port of destination. Lists of prices filed with the Secretary
pursuant to the foregoing Section 2 and to this Section 3 shall be open to
inspection at all reasonable times by anyone.
S E C 4. Except as otherwise provided in this Schedule E of the Code, all prices
quoted and billed by any member of the Code for any product (except standard
Tee rails of more tnan 60 pounds per yard, angle bars and rail joints and oil
country tubular goods, which shall be quoted and billed as hereinafter provided)
sold by such member from and after ten days after the effective date of the
Code shall be delivered prices, which (disregarding the extras, if any, required
by, and the deductions, if any, that may be made pursuant to, the provisions of
the Code) snail be not less than the sum of (a) the published base price of such
member for such product effective at the time of the sale thereof and (¿>) the allrail published tariff freight charges from the basing point on which such base
price is based to the place of delivery to the purchaser thereof or, (1) if such
place of delivery shall be at such basing point, the published tariff switching
charges to such place of delivery from the plant of any member of the Code for
the production of such product at such basing point nearest in terms of such
switching charges to such place of delivery; or, (2) if such place of delivery shall
be at a Gulf or Pacific Coast port that is listed in Schedule F as a basing point,
the published tariff switching charges to such place of delivery from the dock for
discharging products nearest in terms of such switching charges to such place of
delivery ; provided, however, that (a) in any case in which such product shall be
delivered by other than all-rail transportation, the member of the Code selling
such product may allow to the purchaser a reduction in the delivered price otherwise chargeable under this Section 4 at a rate which shall have been previously
approved by the Board of Directors and filed with the Secretary; and (b) in the
case of plates, shapes, or bars intended for fabrication for an identified structure,
for the purpose of establishing the delivered price thereof, the place of delivery
shall be deemed to be the freight station at or nearest to the place at which such
structure is to be erected, and not the shop of the fabricator; and (c) subject as
hereinafter in this Section 4 provided, if any list of prices filed with the Secretary
156
TEXTS OF CODES
by any member of the Code pursuant to this Schedule E and at the time in effect
shall show a specified rate of deduction from the price of any product to be allowed by such member on any sale of such product to any jobber for resale, such
member may, from and after the date on which such list shall have become
effective, allow to any jobber to whom such member shall sell such product for
resale a deduction from such price to such jobber for such product at a rate not
greater than the rate so shown in such list ; and provided, further, that the Board
of Directors by the affirmative vote of three fourths of the whole Board may
permit any member of the Code in special instances or members of the Code
generally to sell or contract for the sale of any product produced by such
member or members at a base price which shall be less than the then published
base price of such member or members for such product at the respective
basing points therefor of such members, if by such vote such Board shall
determine that the making of such sale or contract of sale at such less base
price is in the interest of the Industry or of any other branch of industry
and will not tend to defeat the policy of Title I of the National Industrial
Recovery Act by making possible the using or employing of an unfair practice.
The Board of Directors shall prescribe such rules and regulations as it shall
deem proper by which the question of whether or not any purchaser or prospective purchaser of any product for resale is a jobber shall be determined,
and in granting any permission as aforesaid, the Board of Directors shall
prescribe such rules and regulations in respect thereof as in its judgment shall be
necessary in order to insure to the members of the Code that action in accordance with any such permission shall not result in an unfair practice; and thereafter such Board may by like vote rescind any permission so granted or modify,
cancel, or add to any rules and regulations so prescribed. The Secretary shall
send to each member of the Code a copy of all such rules and regulations prescribed by such Board with respect to the determination of the question of
whether a purchaser or prospective purchaser for resale is a jobber and he shall
give notice in writing of all action so taken by the Board of Directors to each
member of the Code which at the time shall be engaged in producing the kind
of product in respect of which any such permission was granted. Before any
member of the Code shall allow any such deduction to any jobber or sell for
resale to any purchaser who shall not be a jobber any product pursuant to any
permission so granted to such member, such member shall secure from such
jobber or such other purchaser an agreement substantially in a form theretofore
approved by the Board of Directors and filed with the Secretary whereby such
jobber or other purchaser shall agree with such member (a) that such jobber or
other purchaser will not, without the approval of the Board of Directors, sell
such product to any third party at a price which at the time of the sale thereof
shall be less than the price at which such member might at that time sell such
product to such third party, and (b) that, if such jobber or such other purchaser
shall violate any such agreement, he shall pay to the Treasurer as an individual
and not as treasurer of the Institute, in trust, as and for liquidated damages the
sum of $10 per ton of any product sold by such jobber or such other purchaser in
violation thereof. Except as aforesaid, all prices quoted and billed by any
member of the Code for standard Tee rails of more than 60 pounds per yard,
angle bars, and rail joints sold by it from and after ten days after the effective
date of the Code (disregarding extras and deductions as aforesaid) shall be not
less than the published base price of such member for such rails, angle bars, and
rail joints effective at the time of the sale thereof f.o.b. mill of the producer,
or, in the case of rails, angle bars, or rail joints carried by water from any
Atlantic Coast or Gulf port to any Gulf or Pacific Coast port, c.i.f. the port of
destination. Except as aforesaid, all prices quoted and billed by any member
of the Code for oil country tubular goods sold by it from and after ten days
after the effective date of the Code (disregarding extras and deductions as
aforesaid) shall be not less than the delivered price for such goods determined
by deducting from the published list price of such member for such goods effective at the time of the sale thereof the published basing discounts applicable to
such goods effective at such time. In case at the effective date of the Code any
valid, firm contract to which a member of the Code shall be a party shall exist
for a definite quantity of any product or for all or a substantial part of the requirements of the purchaser thereof (a) at a fixed price, or (b) at a price that carijbe
IRON A N D
STEEL
INDUSTRY
157
definitely determined in accordance with the provisions of such contract, or (c)
at the market price for such product at the date when a definite quantity thereof
shall be specified under such contract and such contract covered a sale of 20 %
or more of the total quantity of such product produced and sold in the United
States in the calendar year 1932, it is recognized that such contract will tend to
establish the market price for such product during the remainder of its life and
that, if the other members of the Code which produce and sell such product
shall by the foregoing provisions of this Schedule E be prevented from selling
such product during the remainder of the life of such contract at as favorable a
price and on as favorable terms and conditions as those provided for in such
contract, then unfair competition as between the member of the Code which
shall be a party to such contract and the other members thereof and also as between the other party to such contract and its competitors may result. Accordingly, anything herein to the contrary notwithstanding, during the remainder of
the life of such contract any member of the Code may sell such product at a
price and on terms and conditions as favorable as (but not more favorable than)
the price, terms, and conditions provided for in such contract.
SEC. 5. The Board of Directors shall have power on its own initiative, or on
the complaint of any member of the Code, to investigate any base price for any
product at any basing point shown in any list filed with the Secretary by any
member of the Code, and for the purpose of the investigation thereof to require
such member to furnish such information concerning the cost of manufacturing
such product as the Board of Directors shall deem necessary or proper for such
purpose. If the Board of Directors after such investigation shall determine
that such base price is an unfair price for such product at such basing point,
having regard to the cost of manufacturing such product, and that the maintenance of such unfair base price may result in unfair competition in the Industry, the Board of Directors may require the member of the Code that filed the
list in which such unfair base price is shown to file a new list showing a fair base
price for such product at such basing point, which fair base price shall become
effective immediately upon the filing of such list. If such member of the Code
shall not within ten days after notice to it of such determination by the Board of
Directors file a new list showing such fair base price for such product at such
basing point the Board of Directors shall have power to fix a fair base price for
such product at such basing point, which fair base price, however, shall not be
more than the base price of any other member of the Code at that time effective
for such product at such basing point and in respect of which the Board of
Directors shall not theretofore have begun an investigation or a complaint shall
not have been made by any member of the Code. When the decision of such
Board fixing such fair base price shall have been filed with the Secretary and the
Secretary shall have given notice thereof to such member, such fair base price
shall be the base price of such member for such product at such basing point,
until it shall have been changed as in the Code provided. A notice of all decisions
of the Board of Directors under this Section 5, together with the reasons
therefor, shall be filed with the President.
S E C 6. The Board of Directors by the affirmative vote of a majority of the
whole Board may establish maximum rates of discount and maximum periods of
free credit, other than those specified in Schedule G of the Code, which may be
allowed by any member of the Code with respect to the sale of any product or
products to jobbers for resale as permitted by the provisions of Section 4 of this
Schedule E. The Secretary shall give notice in writing of any action taken by
the Board of Directors in accordance with the provisions of this Section 6 to each
member of the Code which at the time shall be engaged in producing the kind of
product in the sale of which any such other rates or periods shall have been
established by such action. Except as aforesaid and except as elsewhere in this
Schedule E of the Code otherwise provided, the maximum rates of discount for
early payment and the maximum periods of free credit which may be allowed by
any member of the Code shall be the rates and periods specified in said Schedule
G. Except as aforesaid, all invoices for products sold by any member of the Code
after the effective date of the Code shall bear interest from and after the expiration of the period of free credit at a rate which shall be not less than the then
current rate established by the Board of Directors and filed with the Secretary
158
TEXTS OF CODES
Nothing in the Code contained shall prevent any member of the Code from
allowing credit to any purchaser or allowing any purchaser to delay payment in
respect of any invoice for a longer period than the maximum period of free
credit specified in such Schedule G or such other maximum period as shall be
established in accordance with the provisions of this Section 6; but, if any
member of the Code shall allow credit to any purchaser or allow any purchaser
to delay payment in respect of any invoice for a period longer than such
maximum period of free credit, then such member shall charge and collect
interest on the amount in respect of which credit shall be so allowed or the
payment of which shall have been so delayed at a rate not less than the current
rate established and filed as aforesaid.
S E C 7. Except as in this Schedule E of the Code otherwise provided, any
extras added to, and any deductions made from, the base price for any product
sold by any member of the Code in determining its quoted or billed price for such
product shall be uniform for all members of the Code. The rates of such extras
and of such deductions shall be those approved from time to time by the Board
of Directors as being in accordance with the trade practice customary in the
Industry at the effective date of the Code and as meeting the requirements of the
Code. Lists showing such rates shall be filed with the Secretary and shall be
open to inspection at all reasonable times by anyone. In case any member of the
Code shall sell any product to which any such rate of extra or deduction shall
apply, except as aforesaid, such member shall add an extra at a rate which shall
not be less than the rate of extra applicable to such product theretofore approved
by the Board of Directors as aforesaid and at the time in effect and none of the
members of the Code shall make any deduction at a rate that shall be more
favorable to the purchaser of such product than the rate of deduction applicable
to such product theretofore approved by the Board of Directors as aforesaid and
at the time in effect; provided, however, that nothing in the Code contained
shall be so construed as to prevent any member of the Code from selling or
contracting to sell any product for use by the purchaser thereof in the manufacture of articles for shipment in export trade within the meaning of the term
" export trade " as it is used in the Export Trade Act under an agreement by
such member of the Code with such purchaser that, when such articles shall
have been shipped in such export trade, such member of the Code shall make
an allowance at a rate approved by the Board of Directors and a statement of
the approval of which shall theretofore have been filed with the Secretary, which
rate in the opinion of such Board shall be sufficient to enable such member of the
Code or such purchaser to meet foreign competition in the sale and delivery
of such product or such articles, as the case may be.
S E C 8. The practice of shipping products on consignment may result in
unfair competition and it is the intention of the Industry to eliminate such
practice as soon as possible after the effective date of the Code. Accordingly,
except to the extent necessary to carry out arrangements existing on the effective date of the Code and which shall have been reported to the Board of Directors, from and after such date none of the members of the Code shall deliver
products, other than pipe, on consignment except to an affiliated company of
such member. All arrangements for the delivery by any member of the Code
of products on consignment (other than consignments to an affiliated company
of such member and other than consignments of pipe) existing on the effective
date of the Code shall be terminated on or before June 30, 1934, and all stock
held on consignment on that date shall either be sold to the consignee or possession therof shall be taken by the consignor. The Board of Directors shall investigate problems presented in the elimination of consigned stocks of pipe and
shall recommend to the members of the Code which shall be parties to then
existing arrangements with respect to shipments of pipe on consignment (other
than consignments from a member of the Code to an affiliated company) such
action in respect thereof as such Board shall deem proper and designed to
accomplish the termination of all such arrangements (other than as aforesaid)
at as early a date as possible.
S E C 9. For all purposes of this Schedule E, a delivery of any product made
pursuant to a contract of sale shall be regarded as a sale thereof made at the
time of the making of such contract. Except in the case of a product required
IRON AND STEEL INDUSTRY
159
by a purchaser for a specified definite contract of such purchaser with a third
party at a fixed price, none of the members of the Code shall make any contract
of sale of any product by the terms of which the shipment of such product is
not required to be completed before the end of the calendar quarter year ending
not more than four months after the date of the making of such contract.
S E C 10. Nothing in the Code contained, however, shall be so construed as
to prevent the performance by any member of the Code of a valid, firm contract
existing and to which it is a party at the effective date of the Code for a definite
quantity of any product or for all or a substantial part of the requirements of
the purchaser thereof (a) at a fixed price, or (b) at a price that can be definitely
determined in accordance with the provisions of such contract, or (c) at the
market price for such product at the date when a definite quantity thereof
shall be specified under such contract. If any member of the Code shall at
the effective date thereof be a party to any contract for the sale of any product
by such member which by its terms is to continue after December 31, 1933,
and by its terms the price to be paid for such product by the other party to
such contract is related to the market price thereof at the date when a definite
quantity thereof may be specified under such contract and may be less than
such market price, then such member shall within thirty days after the effective
date of the Code file a copy of such contract with the Secretary in order that
the Board of Directors may consider it and take such action in respect thereof
consistent with the rights and obligations of the parties to such contract as
such Board shall deem proper.
S E C 11. A sale made by any member of the Code indirectly through any
affiliated company of such member shall be deemed to be a sale made by
such member.
SEC. 12. Nothing in the Code contained shall be deemed to apply to or
affect the sale of any product for direct shipment in export trade by any
member of the Code within the meaning of the term " export trade " as it is
used in the Export Trade Act or, unless and to the extent that the Board of
Directors shall otherwise determine, the sale of any product by any such
member for direct shipment to the Philippines, Hawaii, or Puerto Rico or
other insular possessions of the United States of America.
S E C 13. If and to the extent requested by the Administrator, all decisions
of, permissions, and approvals given by and rules and regulations made by,
the Board of Directors pursuant to any provisions of this Schedule E shall
be reported to him.
SCHEDULE F
L I S T OF BASING P O I N T S
The places hereinafter in this Schedule F listed are the basing points for
the respective products named.
Axles—Rolled or forged:
Pittsburgh, Pa.
Chicago, 111.
Birmingham, Ala.
Bale Ties:
Pittsburgh, Pa.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Duluth, Minn.
Gulf Ports 1
Pacific Coast Ports 2
Bars—Alloy steel, hot rolled :
Pittsburgh, Pa.
Bars—Alloy steel, hot rolled.—
continued :
Buffalo, N.Y.
Chicago, 111.
Canton, Ohio
Massillon, Ohio
Bethlehem, Pa.
Bars—Cold finished, carbon, and
alloy:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Gary, Ind.
1
Except as otherwise shown in this Schedule F, the Gulf Ports are Mobile, Ala., New
Orleans, La., and Orange, Port Arthur, Beaumont, Baytown, Galveston, and Houston, Tex.
a The Pacific Coast ports are San Pedro (includes Wilmington) and San Francisco (includes
Oakland), Calif.; Portland, Oreg.; and Seattle (includes Tacoma), Washington; and San
Diego, Calif.; for Plates and Structural Shapes only.
160
TEXTS OF CODES
Bars—Concrete reinforcing :
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Gary, Ind.
Birmingham, Ala.
Youngstown, Ohio
Gulf Ports
Pacific Coast Ports
Bars—Iron:
Pittsburgh, Pa.
Troy, N.Y.
Jersey City, N.J.
Dover, N.J.
Philadelphia, Pa.
Columbia, Pa.
Lebanon, Pa.
Reading, Pa.
Danville, Pa.
Burnham, Pa.
Creighton, Pa.
Richmond, Va.
Louisville, Ky.
Terre Haute, Ind.
Bars—Merchant steel:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Gary, Ind.
Birmingham, Ala.
Gulf Ports
Pacific Coast Ports
Bars—Tool steel:
Pittsburgh, Pa.
Syracuse, N.Y.
Bethlehem, Pa.
Girder rails:
Lorain, Ohio
Steelton, Pa.
Ingots, blooms, billets, and slabs—
Alloy:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, 111.
Canton, Ohio
Massillon, Ohio
Bethlehem, Pa.
Ingots, blooms, billets, and slabs—
Carbon:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Gary, Ind.
Birmingham, Ala.
Youngstown, Ohio
Light rails—60 lbs. or less per yard :
Pittsburgh, Pa.
Chicago, 111.
Birmingham, Ala.
Mechanical tubing:
Pittsburgh, Pa.
Canton, Ohio
Shelby, Ohio
Detroit, Mich.
Milwaukee, Wis.
Pig iron—Foundry, malleable, openhearth basic, and Bessemer:
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Youngstown, Ohio
Neville Island, Pa.
Sharpsville, Pa.
Erie, Pa.
Bethlehem, Pa.
Swedeland, Pa.
Birdsboro, Pa.
Hamilton, Ohio
Jackson, Ohio
Toledo, Ohio
Granite City, III.
Detroit, Mich.
Duluth, Minn, (except open- .
hearth basic)
Provo, Utah
Everett, Mass.
Sparrows Point, Md.
Pig iron—Low phosphorus :
Birdsboro, Pa.
Steelton, Pa.
Standish, N.Y.
Johnson City, Tenn.
Pipe—Rigid electrical conduit :
Pittsburgh, Pa.
Evanston, 111.
Pipe—Standard, line pipe, and oil
country tubular products:
Pittsburgh, Pa.
Gary, Ind.
Lorain, Ohio
Plates:
Pittsburgh, Pa.
Chicago, 111.
Gary, Ind.
Birmingham, Ala.
Coatesville, Pa.
Sparrows Point, Md.
Gulf Ports
Pacific Coast Ports
Railroad tie plates:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, 111.
Birmingham, Ala.
St. Louis, Mo.
Kansas City, Mo.
Minnequa, Colo.
Weirton, W.Va.
Portsmouth, Ohio
Steelton, Pa.
Pacific Coast Ports
IRON AND STEEL INDUSTRY
Railroad track spikes:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Youngstown, Ohio
Portsmouth, Ohio
Weirton, W.Va.
St. Louis, Mo.
Kansas City, Mo.
Minnequa, Colo.
Philadelphia, Pa.
Lebanon, Pa.
Columbia, Pa.
Richmond, Va.
Jersey City, N.J.
Pacific Coast Ports
Sheet bars:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Youngstown, Ohio
Canton, Ohio
Sparrows Point, Md.
Sheets :
Pittsburgh, Pa.
Gary, Ind.
Birmingham, Ala.
Pacific Coast Ports
Skelp:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, 111.
Youngstown, Ohio
Coatesville, Pa.
Sparrows Point, Md.
Steel sheet piling:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, 111.
Gulf Ports
Pacific Coast Ports
Strip steel—Cold-rolled:
Pittsburgh, Pa.
Cleveland, Ohio
Worcester, Mass.
Strip steel—Hot-rolled:
Pittsburgh, Pa.
Chicago, 111.
Structural shapes:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, 111.
Birmingham, Ala. (standard
shapes only).
Bethelhem, Pa.
Gulf Ports
Pacific Coast Ports
161
Tin plate, tin mill black plate and
terne plate:
Pittsburgh, Pa.
Gary, Ind.
Pacific Coast Ports
Tubes—Boiler:
Pittsburgh, Pa.
Tube rounds:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Wheels—Car, rolled steel:
Pittsburgh, Pa.
Chicago, 111.
Wire—Drawn, except as hereinafter
specified :
Pittsburgh, Pa.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Anderson, Ind.
Duluth, Minn.
Worcester, Mass.
Gulf Ports
New Orleans, La.
Galveston, Tex.
Houston, Tex.
Pacific Coast Ports
Wire nails and staples,
wire, and wire fencing:
Pittsburgh, Pa.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Anderson, Ind.
Duluth, Minn.
Gulf Ports
Pacific Coast Ports
barbed
Wire rods:
Pittsburgh, Pa.
Cleveland, Ohio
Chicago, 111.
Birmingham, Ala.
Wire^-Spring:
Pittsburgh, Pa.
Cleveland, Ohio
Chicago, III.
Worcester, Mass.
Pacific Coast Ports
Wire—Telephone:
Pittsburgh, Pa.
Cleveland, Ohio
Waukegan, 111.
Muncie, Ind.
Trenton, N.J.
Worcester, Mass.
Sparrows Point, Md.
11
162
TEXTS OF CODES
SCHEDULE G
MAXIMUM" RATES OF DISCOUNT FOR EARLY PAYMENT
AND MAXIMUM PERIODS OF FREE CREDIT
MAXIMUM RATES OF DISCOUNT FOR EARLY PAYMENT.
In the case of products shipped from plants located east of the Mississippi
River to Pacific Coast Ports and which shall be invoiced from such plants—V2 of
1%, if the invoice of such products shall be paid within 25 days from the date of
such invoice ; in all other cases—y2oî 1 %, if the invoice of such products shall be
paid within 10 days from the date of such invoice; provided, however, in the
latter cases, that any member of the Code may allow such discount of y2 of 1%
for payment within 10 days on the basis of settlements three times in each
month, asfollows:
(1) On invoices for products dated from the 1st to the 10th, inclusive, in any
month, such discount may be allowed on payment of such invoices on or before
the 20th of such month ;
(2) On invoices for products dated from the 11th to the 20th, inclusive, in;
any month, such discount may be allowed on payment of such invoices on or
before the 30th of each month ; and
(3) On invoices for products dated from the 21st to the end of any month,
such discount may be allowed on payment of such invoices on or before the 10th
of the next following month. Any discount allowed in accordance with the provisions of this Schedule G
shall apply only to the invoiced value of the products specified therein and not
to any part of the transportation charges on such products.
MAXIMUM PERIODS OF FREE CREDIT
In the case of products shipped from plants located east of the Mississippi
River to Pacific Coast ports and which shall be invoiced from such plants—45
days; in all other cases—30 days.
SCHEDULE H
LIST OF UNFAIR PRACTICES
For all purposes of the Code the following described acts shall constitute
unfair practices :
A. Making or promising to any purchaser or prospective purchaser of any
product, or to any officer, employee, agent or representative of any such
purchaser or prospective purchaser, any bribe, gratuity, gift or other payment
or remuneration, directly or indirectly.
B. Procuring, otherwise than with the consent of any member of the Code,
any information concerning the business of such member which is properly re-1
garded by it as a trade secret or confidential within its organization, other than
information relating to a violation of any provision of the Code.
C. Imitating or simulating any design, style, mark, or brand used by any
other member of the Code.
D. Using or substituting any material superior in quality to that specified"
by the purchaser of any product or using or substituting any material or any
method of manufacture not in accord with any applicable law, rule, or regulation of any governmental authority.
E. Cancelling, in whole or in part, or permitting the cancellation in whole or
in part of any contract of sale of any product, except for a fair consideration, or
paying or allowing to any purchaser in connection with the sale of any product
any rebate, commission, credit, discount, adjustment, or similar concession other
than as is permitted by the Code and specified in the contract of sale.
F. Disseminating, publishing, or circulating any false or misleading information relative to any product or price for any product of any member of the Code,
or the credit standing or ability of any member thereof to perform any work or
IRON AND STEEL INDUSTRY
163
manufacture or produce any product, or to the conditions of employment
among the employees of any member thereof.
G. Inducing or attempting to induce by any means any party to a contract
with a member of the Code to violate such contract.
H. Aiding or abetting any person, firm, association, or corporation in any
unfair practice.
I. Making or giving to any purchaser of any product any guaranty or protection in any form against decline in the market price of such product.
J. Stating in the invoice of any product as the date thereof a date later than
the date of the shipment of, such product, 'or including in any invoice any product shipped on a date earlier than the date of such invoice.
K. Making any sale or contract of sale of any product under any description
which does not fully describe such product in terms customarily used in the
Industry.
L. Rendering to any purchaser of any product in or in connection with the
sale of such product any service, unless fair compensation for such service shall
be paid by such purchaser.
M. Any violation of any other provision of the Code, whether or not therein
expressed to be such, or using or employing any practice not hereinabove in this
Schedule H described which the Board of Directors by the affirmative vote of
three fourths of the whole Board shall have declared to be a practice that would
tend to defeat the policy of Title I of the National Industrial Recovery Act and,
therefore, an unfair practice, and of which determination by such Board the
Secretary shall have given notice to the members of the Code and to the
President.
PETROLEUM INDUSTRY
EXECUTIVE ORDER
August 19, 1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Petroleum Industry, and hearings
having been held thereon and the Administrator having rendered
his report together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of
clauses (1) and (2) of subsection (a) of Section 3 of the said Act
have been met:
Now, therefore, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I
of the National Recovery Act, approved June 16, 1933, and otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said Code of
Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S.
JOHNSON.
Code of Fair Competition for the Petroleum Industry, as Approved by
President Roosevelt
PREAMBLE
To meet the emergency in the petroleum industry; to increase
employment, establish fair and adequate wages, enlarge the purchasing power of persons related to this industry and improve
standards of labor; to conserve the Nation's petroleum resources
and to prevent physical and economic wastes which demoralize
the national market to the detriment of consumers and producers
and to restrain and avoid recurring abuses in the production,
transportation and marketing of petroleum and its products which
directly obstruct the free flow of interstate and foreign commerce
by causing abnormal and disturbing temporary fluctuations in the
supply of petroleum or its products that are not responsive to actual
demand and prices and disrupt the normal flow of interstate
PETROLEUM INDUSTRY
165
commerce in petroleum and its products; and to prevent the growth
of monopoly resulting from unfair competitive practices; and to
protect the Nation from an unnecessarily wasteful depletion of this
natural resource essential for the national defense and safety and
the continued functioning of the Nation's transportation facilities
t h a t are dependent for operation on an adequate and economic
supply of petroleum and its products and to accomplish and
effectuate the policies set forth in the National Industrial Recovery
Act, this Code of Fair Competition governing the petroleum industry
is adopted.
ARTICLE
I—GENERAL
SECTION 1. The provisions of this Code shall become effective
two weeks after approval thereof by the President.
SEC. 2. The term " American Petroleum Industry " includes the
production, transportation, refining, and marketing of crude petroleum and its products ; and is inclusive likewise of natural gasoline
and the production of natural gas in conjunction with petroleum.
The term " person " shall include natural persons, partnerships,
associations, trusts, including trustees in bankruptcy and receivers
and corporations. The word " President " shall mean either the
President or any agent, employee, or agency empowered by the
President to act in his stead.
SEC. 3. Such of the provisions of this Code as are not required to be
included therein by the National Recovery Act, may, with the
approval of the President, be modified or eliminated as changes in
circumstances and experience may indicate.
SEC. 4. This Code is hereby declared subject to the right of the
President from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of the National
Industrial Recovery Act.
S E C 5. Agreements between competitors within the industry for
the purpose of accomplishing the objectives of this Code, or any of
them, or for the purpose of eliminating wasteful duplication of
manufacturing, transportation, and marketing facilities are hereby
expressly permitted, but such agreements shall not become operative
until specifically approved by the President, and suitable public
notice shall have been given of such agreements. Such agreements
may at any time be disapproved by the President and upon such
disapproval they shall cease to be valid.
ARTICLE
II
SECTION 1. In drilling, production, refinery and pipe-line operations, the maximum hours for clerical employees shall not exceed
40 per week and the rate of pay for each geographic division shall
not be less than the minimum stated in Section 2. All other
employees in these operations, except executives, supervisors, and
their immediate staffs and pumpers on " stripper " wells located so
166
TEXTS OF CODES
as to make relief impracticable, shall work not more than 72 hours
in any 14 consecutive days, but not more than 16 hours in any
two days.
To establish geographic divisions for the petroleum industry, the
geographic divisions as shown by the United States Department of
Labor, Bureau of Labor Statistics wage reports (October 1929) have
been adopted. The minimum hourly rates for the employees
above specified, other than clerical, in each of these geographic
divisions shall be as follows :
Minimum rates
per hour (cents)
Middle Atlantic Division:
New York, New Jersey, Pennsylvania
52
New England:
Maine, New Hampshire, Vermont, Rhode Island, Massachusetts, Connecticut
52
East North Central:
Ohio, Indiana, Illinois, Michigan, Wisconsin
52
West North Central:
Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska,
Kansas
48
South Atlantic:
Delaware, Maryland,
District of Columbia, Virginia, West Virginia,
North Carolina,1 South Carolina,l Georgia,1 Florida1
45
East South Central:
1
Kentucky, Tennessee, Alabama, * Mississippi
45
West South Central:
Arkansas,l Louisiana,x Oklahoma, Texas 1
48
Mountain:
Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Nevada,
Utah
50
Pacific:
Washington, Oregon, California
52
SEC. 2. In market operations all employees (other than those
employed in filling or service stations, garages, or other institutions
which sell gasoline to the public) including clerical, but excluding
executives, supervisors and their immediate staffs, and outside
salesmen, shall work not more than 40 hours per week. The minimum rates for such employees in each of the geographic divisions
above specified shall be as follows:
Minimum rate
per hour (cents)
Middle Atlantic Division:
New York, New Jersey, Pennsylvania
New England:
Maine, New Hampshire, Vermont, Rhode Island, Massachusetts,
Connecticut
East North Central:
Ohio, Indiana, Michigan, Wisconsin, Illinois
West North Central:
Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska,
Kansas
47
47
47
42
1
For refinery and pipe-line work in States so marked, not more than ten percent., constituting common labor only, of the total number of employees in any plant or operation
may be paid at not less than 80 percent, of this minimum rate.
PETROLEUM INDUSTRY.
167
Minimum raie
per hours (cents)
South Atlantic:
Delaware, Maryland,
District of Columbia, "Virginia, West Virginia,
40
North Carolina,1 South Carolina,1 Georgia,1 Florida x
East South Central:
1
1
40
Kentucky, Tennessee, Alabama, Mississippi
West South Central:
1
1
1
40
Arkansas, Louisiana, Oklahoma, Texas
Mountain :
Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Nevada,
45
Utah
Pacific:
Washington, Oregon, California
47
SEC. 3. No filling or service station employee, nor any employee of
any garage or other institution selling gasoline to the public shall
work more than 48 hours per week. Nor shall any such employee
receive less than $15.00 per week in any city of over 500,000 population or in the immediate trade area of such city; nor less than
$14.50 per week in any city between 250,000 and 500,000 population, or in the immediate trade area of such city; nor less than
$14.00 per week in any city of between 2,500 and 250,000 population, or in the immediate trade area of such city; and in towns of
less than 2,500 population such employees shall receive wage
increases of not less than20 per cent. : Provided, That this shall not
require wages in excess of $12.00 per week: And provided further,
T h a t no employee shall receive a smaller weekly wage for the shorter
work week than was his weekly wage on July 20, 1933.
SEC. 4. I t is the purpose of the labor provisions of this Code t h a t
all employees engaged in similar work in each of the geographic divisions shall be placed on the same basis of hours and receive at least
t h e minimum earnings provided for each class of work in the
industry.
To effectuate this purpose, the differentials between the rates for
skilled jobs and the minimums established in this Code for common
labor will not be less than those existing in the industry in each geographic area on July 1, 1929; but in no case will such differential for
first grade refinery stillmen be less than 45 cents per hour or for
rotary drillers less than 75 cents per hour.
SEC. 5. Every person subject to this Code shall insert a provision
in all contracts made by him for work within the industry, whereby
the contractor agrees t h a t his employees, or those of any subcontractor, shall receive the rates designated by this Code for each respective
class of work and shall not work in excess of the schedule of hours in
this Code.
SEC. 6. On and after the effective date of this Code the employers
in the Petroleum Industry shall not employ any person under the
age of sixteen years.
1
For market operations in States so marked, not more than 10 percent., constituting
common labor only, of the total number of employees in any plant or operation may be paid
at not less than 80 percent, of this minimum rate.
168
TEXTS OF CODES
SEC. 7. Employees in this industry shall have the right to organize
and bargain collectively through representatives of their own
choosing, and shall be free from interference, restraint, or coercion
by employers of labor, or their agents, in the designation of such
representatives or in self-organization, or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection. No employee in this industry, and no one seeking
employment therein, shall be required as a condition of employment
to join any company union or to refrain from joining a labor organization of his own choosing. Employers of labor in this industry
shall comply with the maximum hours of labor, minimum rates of
pay, and other conditions of employment approved or prescribed
by the President.
SEC. 8. The provisions of this Code regulating hours of labor and
wages of employees shall be deemed violated by any device or
method by which employees, as recognized in the industry on July
1, 1933, are or are attempted to be removed from such present
recognized status of employees by means of drilling contracts,
commission contracts, lease and agency, or any other agreement.
ARTICLE III—PRODUCTION
SECTION 1. The President is hereby requested, after such investigation and hearing as is prescribed by, and subject to the limitations
contained in, title 1 of the National Industrial Recovery Act, to
limit imports of crude petroleum and petroleum products for
domestic consumption to volumes bearing such ratio to the estimated volume of domestic production as will effectuate the purposes
of this Code and the National Industrial Recovery Act.
SEC. 2. Withdrawals of crude oil from storage shall be subject to
approval by the Planning and Coordination Committee but for the
remainder of 1933 shall be limited in the aggregate to an average not
in excess of 100,000 barrels daily. Additions to storage beyond the
necessary limits of fluctuations in working stocks shall be made
only with the approval of the Planning and Coordinating Committee.
SEC. 3. Required production of crude oil to balance consumer
demand for petroleum products shall be estimated at intervals by a
Federal Agency designated by the President. In estimating such
required production, due account shall be taken of probable withdrawals from storage and of anticipated imports. The required production shall be equitably allocated among the several States by the
Federal Agency. The estimates of required production and the
allocations among the States shall be submitted to the President for
approval, and, when approved by him, shall be deemed to be the net
reasonable market demand, and may be so certified by the Federal
Agency. The allocations when approved by the President shall be
recommended as the operating schedule for the producing States and
for the industry. In any States where oil is produced on account of
PETROLEUM INDUSTRY
169
back allowables, total current allowables shall be reduced accordingly.
SEC. 4. The subdivision into pool and/or lease and/or well quotas
of the production allocated to each State is to be made within the
State. Should such quotas allocated in conformity with the provisions of this section not be made within the State or if the production of petroleum within any State exceeds the quota allocated to
said State, the President may regulate the shipment of petroleum or
petroleum products in or affecting interstate commerce out of said
State to the extent necessary to effectuate the purposes of the
National Industrial Recovery Act and/or he may compile such
quotas and recommend them to the State Regulatory Body in such
State, in which event it is hereby agreed that such quotas shall
become operating schedules for that State.
If any subdivision into quotas of production allocated to any
State shall be made within a State, any production by any person,
as person is defined in Article I, Section 3, of this Code, in excess of
any such quota assigned to him shall be deemed an unfair trade
practice and in violation of this Code.
SEC. 5. In any State in which no regulatory body or officer
charged with the duty of allocating quotas within said State exists,
and under the laws of which any person in any trade or industry
within said State is required to comply with the terms of any Code
of Fair Competition for such trade or industry approved under
Title I of the National Industrial Recovery Act, the President may
designate an agency within such State to compile quotas within
said State. Such compilations, upon approval by the President,
shall become operating schedules for the petroleum industry within
said State. If any subdivision into quotas of production allocated
to any such State shall be made within the State, any production
by any person, as person is defined in Article I, Section 3, of this Code
in excess of any such quota assigned to him shall be deemed an
unfair trade practice and in violation of this Code; and, further,
persons engaged in the petroleum industry or any branch thereof
in any State may adopt a Supplemental Code, for that State to be
effective when approved by the President, covering any matter
relating to the petroleum industry not in conflict with the provisions
of this Code.
SEC. 6. During such periods as the production of crude petroleum
in any State is within the allocation to that State, as provided in
Section 3, Article III, of this Code, it shall be an unfair practice
within that State to buy, sell, receive in exchange, or otherwise
acquire Mid-Continent crude petroleum of 36°-36.9° A.P.I, gravity
during any calendar month at a price per barrel (to the nearest
cent) less than that which will be determined by multiplying the
average Group 3 tank car price per gallon of U.S. Motor gasoline of
60-64 octane rating during the preceding calendar month as
ascertained and declared by the Federal Agency designated by the
President, by the constant 18.5. The constant 18.5 represents the
170
TEXTS OF CODES
relationship, during the period 1928-1932, between the average
price per barrel of Mid-Continent crude petroleum of 36°-36.9°
A.P.I, gravity and the average Group 3 price per gallon of U.S.
Motor gasoline of 57-65 octane rating or 58-60 U.S. Motor gasoline.
For crude petroleum of lower or higher gravity and /or different
quality and/or in different locality, fair and .equitable differentials
between the price of 3S°-36.9° Mid-Continent crude petroleum,
determined as above prescribed, and the prices quoted for other
crude petroleums shall be observed. Each company or individual
purchasing crude petroleum shall file a certified copy of its price
schedule and subsequent price changes with the Planning and
Coordination Committee. Such contracts for the purchase of
crude oil as were in existence on the effective date of this Code
shall not be affected by the provisions of this section during the
period of the contract: Provided, That a certified copy of each such
contract is filed with the Planning and Coordination Committee
within thirty (30) days of the effective date of this Code. Such contracts, however, may not be renewed except with the approval of
the Planning and Coordination Committee.
(a) For a test period of not to exceed ninety days, the President
may prescribe the base price of the gasoline described in Section 6
of this Article to which said constant shall be applied and, at the end
of said period,the President may revise the formula set forth in said
Section 6 or add such additional formulae relative to the wholesaling
and retailing of petroleum and its products in such manner as in his
opinion may be necessary to effectuate the purpose of the National
Industrial Recovery Act. If and whenever the President shall prescribe a base price for gasoline, then it shall be an unfair trade
practice to buy, sell, give or receive in exchange or otherwise dispose
of or acquire such gasoline at a lower price.
SEC. 7. Wild-catting shall not be prohibited because the future
maintenance of the petroleum supply depends on new discoveries
and new pools, but the shipment of petroleum or the products
thereof in or affecting interstate commerce which was produced in a
new field or pool which is not developed in accordance with a plan
approved by the President is unfair competition and in violation
of this Code. For the purpose of this Code a new field or pool is
one discovered after date of approval of this Code and in which ten
producing wells have been completed.
ARTICLE IV—REFINING
SECTION 1. To achieve greater accuracy in balancing production
and consumption, to prevent the injurious effect upon interstate
commerce of an unbalanced accumulation of gasoline inventories in
any part of the country, and to facilitate equitable access of refiners
to the allowable supply of crude oil, the Federal Agency designated
by the President shall divide the country into eight refining
districts and shall suggest a proper relationship between inventories
of gasoline and sales thereof for each district.
PETROLEUM INDUSTRY
171
SEC. 2. The Planning and Coordination Committee shall appoint
subcommittees for each refining district. Said subcommittees shall
call the attention of refiners within their respective districts to the
existing and recommended ratios between gasoline inventories and
sales within said districts. If any refinery claims that inequities
exist in the availability of supplies of crude oil it shall make complaint to the subcommittee for the district within which it is
situated. Said district subcommittee shall endeavor to adjust such
controversy; if it cannot do so, it shall refer such complaint to the
Adjustment Committee of the Planning and Coordination Committee. The Adjustment Committee, after proper statistical study
of the ratio between claimant's inventory and sales, and upon
recommendation of the Planning and Coordination Committee,
shall hold public hearings, upon due notice, with a view to arbitration.
SEC. 3. Should any refiner have an inadequate supply of crude oil
available from current purchases, within economic transportation
limits, then he may withdraw or purchase from storage such oil
as may be necessary to make up the deficiency. In such cases a
special report shall be made by such refiner to the subcommittee,
which may prohibit further withdrawals by providing the deficiency
from current sources at competitive prices. In the event of such
purchase from storage then it shall not be an unfair trade practice
for the owner of storage oil to make such sale.
SEC 4. The storage of gasoline in amounts greater than is
required to provide for the necessary fluctuations in working stocks
and to meet the variation resulting from seasonal demand, as
determined by the Planning and Coordination Committee, is an
unfair trade practice and is prohibited.
ARTICLE V—MARKETING
Rule 1.—The provisions of this Code relating to transactions of
refiners, distributors, jobbers, or wholesalers with retailers and
others selling or consigning petroleum products to consumers shall
apply to all accounts, of any description, under which refiners,
distributors, jobbers, or wholesalers sell their products or cause their
products to be sold to consumers or to retailers, or to others selling
petroleum products to consumers.
Rule 2.—Whenever any merchant or vendor of any and all types
of merchandise offers for sale at wholesale or retail motor fuels,
motor lubricants, motor gasoline, or naphtha of a petroleum
nature he shall, insofar as his business pertains to these products,
be bound by the regulations of this Code.
Rule 3.—All refiners, distributors, jobbers, and wholesalers shall
conspicuously post at each point from which they make deliveries,
and at places there readily accessible during business hours to the
public, all prices for which naphtha, gasoline, motor fuel, lubricating
oil, grease, kerosene, and heating oils are sold.
172
TEXTS OF CODES
With the exception of sales made directly by refiners, all such
prices shall remain in effect for at least twenty-four (24) hours after
they become effective. Refiners must post for twenty-four (24)
hours the prices for all sales made the previous day. The posting
shall include the following:
The prices for all classes, types, methods, and quantities of
deliveries, except those under previously executed contracts, being
made from the place where the price is posted, a schedule of all
discounts offered and the terms thereof and a statement of all
terms as to freight rates and deliveries. If different prices are
offered to different classes of buyers, such prices shall be separately
posted. The posted prices shall include, among others, the prices
for spot sales. When prices are posted for deliveries in tank
wagons or tank trucks, the posting shall describe the area to which
the prices apply. All sales shall be made at the posted prices
applicable thereto, and no departure shall be made from the prices,
schedule, or discounts or from the terms posted applicable to any
such sale.
All retailers, and others who sell to consumers, shall conspicuously
post at the place from which delivery is made, and at places there
readily accessible during business hours to the public, one price at
which each brand, grade, or quality of naphtha, gasoline, motor fuel,
lubricating oil, grease, kerosene, and heating oil are sold. All
retailers and others who sell to consumers, unless prevented therefrom
by applicable law, shall separately post in the same manner all tax
they are required to pay or collect because of the sale of naphtha,
gasoline, motor fuel, lubricating oil, grease, kerosene, or heating oil.
All prices posted shall remain in effect for at least twenty-four (24)
hours after they are posted.
All sales shall be made at the posted prices applicable to the
brand, grade, or quality of the commodity sold.
Coupon books or other scrip of any nature, if used, shall be sold
and redeemed at their face value without any discount.
No one shall make any deviation from his posted price by means
of rebates, allowances, concessions, benefits, scrip books, or any
other device whereby any buyer obtains any naphtha, gasoline,
motor fuel, lubricating oil, grease, kerosene, or heating oil at a
net lower cost than the applicable posted price; except that commercial consumers may secure gasoline, motor fuel, and other oils,
on contract quantity basis under conditions established by the
Planning and Coordination Committee.
The provision of all previously executed then existing contracts
regarding price will be available for inspection upon the direct
request of any competitor, unless such request shall be made for
the purpose of unfairly obtaining information, in which event the
decision whether such contract shall be made available shall be made
by the authority, committee, or commission provided in Rule 4
of this Article, or such agency as it may designate.
On a change in the posted price, no adjustments, allowances,
credits, or refunds shall be given to any buyer on deliveries already
made.
PETROLEUM
INDUSTRY
173
Abnormal deliveries in anticipation of price advance and acceptance of orders for subsequent deliveries at prices effective before
advances are prohibited.
Rule 4.—Refiners, distributors, jobbers, wholesalers, retailers, and
others engaged in the sale of petroleum shall not sell any such
refined petroleum products below cost of manufacturing or importation into the State where offered for sale, plus reasonable expenses
in the cost of marketing as observed under prudent management,
fixed taxes and inspection fees by the Federal or State Government, or any political subdivision thereof, provided, however, that
any person is permitted to meet competition in violation of this rule
concerning which he has made complaint to the Planning and
Coordination Committee, or any authorized agency thereof, but
only pending action thereon.
An authority, committee, or commission delegated by the National Recovery Administration for such purposes shall receive
complaints of violation of this rule and make such investigation
and/or hold such hearings as it deems necessary to determine
whether the prices complained of are in violation of this rule.
Rule 5.—The schedule of credit attached hereto marked Appendix
" B " is hereby adopted by the petroleum industry as a uniform
basis of credit to be applicable to all deliveries made after the
effective date of this Code. The granting of a longer term of credit
or a larger rate of discount by any refiner, distributor, jobber,
wholesaler, or retailer than that allowed by this schedule shall
constitute an unfair method of competition.
Credit conditions of contracts made prior to the effective date of
this Code are excepted from the provisions of this rule.
Rule 6.—Inasmuch as there are firms and corporations in the
petroleum industry who severally or through firms and corporations
owned or controlled, constitute and comprise a complete or integrated unit in such industry or produce and refine petroleum and
market the products manufactured therefrom, the business thereof
shall be so conducted that the several branches of this industry,
viz. producing of petroleum, refining, and marketing of refined
products, may be carried on upon a profitable basis and that no
one or more of the said branches shall obtain or receive excessive
or disproportionate gain or profit therefrom to the exclusion of any
other branch of this industry.
Rule 7.—Refiners, distributors, jobbers, wholesalers, or retailers
shall not hereafter sell, lease, loan, or otherwise furnish to consumers
of petroleum products or to anyone engaged in the sale of petroleum
products at retail, any pumps, tanks, air compressors, greasing
equipment or guns, lubsters, or other equipment or accessories
(excepting only pump globes and the usual advertising signs), for the
storage, display, vending, delivering, or consumption of petroleum
products, except as otherwise provided in paragraph 3 of this rule.
Notwithstanding the prohibition hereinabove contained, any cooperative society, association, or corporation of the type described in
4,74
TEXTS OF CODES
Rule 29 of this Article shall be permitted to purchase for cooperative
distribution to any member or members thereof, equipment of the
kind hereinabove described, intended for exclusive use by such
member or members.
If equipment of this kind, type, or description hereinbefore mentioned now in operation becomes damaged, destroyed, or worn out,
it shall not be replaced by any refiner, distributor, jobber, or
wholesaler.
The equipment of the kind, type, or description hereinbefore
mentioned, furnished, loaned, or leased before June 15, 1933, by
any refiner, distributor, jobber, or wholesaler to or installed with
any retailer or consumer shall, at the expiration of any contractual
relation, and on the request of such retailer or consumer, be sold by
such refiner, distributor, jobber, or wholesaler to such retailer or consumer, or, in the absence of a sale of such retailer or consumer as
herein provided, shall be sold by the refiner, distributor, jobber, or
wholesaler, who has made the loan, to any other refiner, distributor,
jobber, or wholesaler who is about to begin supplying petroleum
products to such retailer or consumer, on the request of such other
refiner, distributor, jobber, or wholesaler at the original invoice
price plus actual cost of installation, less a depreciation of 15% per
annum, but in no event at a price lower than that fixed in thé
schedule hereto attached, marked Appendix " A ". In the event
of a purchase as herein provided by such other refiner, distributor,
jobber, or wholesaler, such equipment may be loaned, leased, or
licensed to the retailer or consumer at such location by any new
supplier subsequently acquiring title thereto.
This rule does not apply to the sale of equipment by the manufacturer thereof where such sale is not conditioned upon the purchase
or use of petroleum products. This rule does not apply to special
equipment used in connection with the sale and distribution of
propane, butane, and other liquefied petroleum gases.
Rule 8.—Refiners, distributors, jobbers, wholesalers, or retailers
shall not construct, repair, lease, loan, or furnish driveways,
buildings, canopies, air compressors, grease lifts or pits, grease
equipment, grease guns, air towers, light poles, flood lights, material
for driveways, buildings, or canopies, or any other equipment of
any character whatsoever in connection with service stations or
the storage, display, or sale or consumption of petroleum products
(excepting only pump globes and the usual advertising signs and
except as provided in Rule 7 of this Article) for or to anyone
engaged in the sale or delivery of petroleum products to consumers
or for or to consumers.
Nothing contained in Rules 7 and 8 of this Code shall prohibit
refiners, distributors, jobbers, or wholesalers or retailers from
installing at or furnishing or equipping with any of the devices
mentioned in Rules 7 and 8 any station or place where petroleum
products are sold to consumers, which station or place is owned,
in fee by such refiner, distributor, jobber, or wholesaler, or held by
such refiner, distributor, jobber, or wholesaler under a valid and
PETROLEUM
INDUSTRY
175
binding lease, and at the time the lease was executed the leased
premises were not improved with any building or other facility or
equipment for the sale or storage of petroleum products, or held by
such refiner, distributor, jobber, or wholesaler under a valid and
binding lease for a period of at least five years, which lease provides
for a substantial rental not determined by the volume of petroleum
products sold at the premises and which does not contain any
provision permitting either party thereto to cancel or terminate it
or the term thereby granted before the expiration of five years
from the beginning of such term.
Nothing contained in Rule 8 shall prohibit any individual from
setting up a station or place for the sale and distribution of petroleum
products and from furnishing his own equipment at his own expense.
Rule 9.—Refiners, distributors, jobbers, or wholesalers shall not
make any repairs to any equipment of any kind owned by retailers
or consumers ; and shall not make any repairs to any equipment now
loaned or leased to or installed with retailers or consumers which
necessitates the removal from the premises of the equipment in
order to effect the repairs.
Refiners, distributors, jobbers, or wholesalers may make any ordinary repairs to any equipment now loaned or leased or otherwise
furnished to retailers or consumers, provided such repairs can be
made without the removal of such equipment from the premises.
Rule 10.—Refiners, distributors, jobbers, or wholesalers shall not
do any painting, nor furnish any paint free, or sell any paint for or to
consumers, or for or to retailers, except for pumps through which
the products of the refiner, distributor, jobber, or wholesaler are
sold and except for usual advertising signs. Any new supplier shall
assume the obligation of painting out colors identifying previous
suppliers of the retailers or of anyone selling petroleum products
to consumers with some neutralizing color other than that customarily used to identify places through which the products of the
refiner, distributor, jobber, or wholesaler doing the painting are
sold or dispensed. Before any refiner, distributor, jobber, or
wholesaler paints over any sign or color of another refiner, distributor, jobber, or wholesaler, he shall communicate with the refiner,
distributor, jobber, or wholesaler whose signs or colors are involved
inquiring whether such refiner, distributor, jobber, or wholesaler
has any written contract which would be violated by such proposed
painting. Any refiner, distributor, jobber, or wholesaler to whom
such inquiry is presented shall respond thereto within ten days
from date of notice giving the information requested and if such
proposed painting would violate any contract which it holds shall
offer to submit the contract for inspection at its office. If such
proposed painting would violate the contract so submitted, the
painting shall not be done.
Refiners, distributors, jobbers, or wholesalers may sell paint
direct to any other refiner, distributor, jobber, or wholesaler.
Nothing hereinabove contained shall prevent any cooperative
society, association, or corporation of the type defined in Rule 29
176
TEXTS OF CODES
of this Article, from buying paints for cooperative distribution to
any member or members thereof, provided that the purchase or
sale of such paints shall not be conditioned upon the purchase or
sale of petroleum products.
Rule 11.—Except in such cases as constitute exceptions to the prohibitions contained in Rules 7 and 8 of this Article, refiners, distributors, jobbers, or wholesalers shall not lend, lease, or otherwise
furnish any equipment of any character, whatsoever, except trademarked pump globes and other usual advertising devices, to anyone
purchasing or receiving petroleum products by tank car, tank barge,
truck train, or pipe line or to anyone selling petroleum products for
resale or consumption.
Rule 12.—When any pump, tank, or other device for the storage,
display, consumption, handling, or sale of naphtha, gasoline, motor
fuel, or lubricating oil, bears the name, trade mark, or trade name
of any person, firm, association, or corporation engaged in the
manufacture or sale of any such commodity, no other person, firm,
association, or corporation shall deliver into or deliver for sale from
such pump, tank, or other device, or any tank or other container
connected therewith, any naphtha, gasoline, motor fuel, or lubricating oil, other than that manufactured, sold, or distributed by the
person, firm, association, or corporation whose name, trade mark
or trade name is so affixed. No person, firm, association, or corporation shall in any way knowingly be a party to the substitution
of one grade or brand of naphtha, gasoline, motor fuel, or lubricating
oil, for another.
Rule 13.—Refiners, distributors, jobbers, or wholesalers shall not
loan money to retailers or others engaged in the sale of petroleum
products, or to consumers, for any purpose whatsoever and shall not
extend any credit to any retailer or to anyone engaged in selling
petroleum products to consumers except for merchandise sold for
resale. Refiners, distributors, jobbers, or wholesalers shall not pay
for or reimburse to any retailer or consumer, either directly or
indirectly any property tax, privilege tax, license fee or tax, inspection fee or tax, chain-store tax, or any other charge, tax, or impost
levied or assessed by any taxing authority upon any retailer or
consumer in connection with the operation of any place or facility
for the sale of petroleum products, nor advance money for the same.
Rule 14.—Refiners, distributors, jobbers, or wholesalers shall not
pay rentals or otherwise pay for the privilege of displaying advertising on premises where naphtha, motor fuel, lubricating oil, grease,
kerosene, or heating oil are sold.
Rule 15.—No refiner, distributor, jobber, wholesaler, or retailer or
other person engaged in the sale of petroleum shall knowingly
induce, attempt to induce, or assist a party to break a then existing
written contract for the sale of petroleum products or a then
existing lease of the premises used for the sale of petroleum products between that party and another.
PETROLEUM
INDUSTRY
177
No refiner, distributor, jobber, wholesaler, retailer, or other person
engaged in the sale of petroleum products shall sell or deliver any
naphtha, gasoline, motor fuel, lubricating oil, grease, kerosene, or
heating oil to anyone knowing that such sale or delivery will violate
or prevent the performance of a then existing written contract
between the person to whom the sale or delivery is made and
another.
No contracts in violation of this Code are protected under this
rule. Nothing herein contained shall preclude the sale or delivery of
any naphtha, gasoline, motor fuel, lubricating oil, grease, kerosene,
or heating oil to any person who justifiably refuses further compliance with any existing written contract.
Rule 16.—Lotteries, prizes, wheels of fortune, or other games of
chance shall not be used in connection with the sale of petroleum
products.
Rule 17.—Except by permission of the Planning and Coordination
Committee, refiners, distributors, jobbers, wholesalers, retailers, and
others engaged in the sale of petroleum products shall not give away
oil, premiums, trading stamps, free goods, or other things of value,
or grant any special inducement in connection with the sale of
petroleum products.
Rule 18.—Except by permission of the Planning and Coordination
Committee, gasoline shall not be sold or delivered from tank wagons
or trucks to motor vehicles except in emergency cases.
Rule 19.—Pending decision by the Federal Trade Commission as
to whether the lease and agency, lease and license methods of marketing of petroleum products constitute an unfair trade practice:
(a) No new contract shall be written under either method,
(b) Any such contracts now in effect shall not be renewed for a
period exceeding one year, and the cancellation privilege shall be on
notice not exceeding thirty days,
(c) Provisions of Rules 7 and 8 shall apply in all instances to
existing lease and agency and lease and license contracts, and to
renewals, as above defined,
(d) Insofar as lease and agency and lease and license agreements
are concerned, the provisions of Rule 15 shall not apply to soliciting
the sale and purchase of petroleum products, and
(e) Should the Federal Trade Commission fail to render a final
decision on the validity of lease and agency and lease and license
agreements within 60 days of the effective date of this Code, the
President, or agency designated by him, may make a final decision
prohibiting such marketing methods, or authorizing them without
condition or upon such conditions as he or it may prescribe; or the
President or agency designated by him may, in his or its discretion,
temporarily prohibit the use of such marketing methods pending the
decision of the Federal courts, or he or it may temporarily authorize
such methods pending decision of the Commission and of the courts,
either without condition or upon such conditions as he or it may
prescribe.
12
178
TEXTS OF CODES
Rule 20.—Refiners, distributors, jobbers, or wholesalers may own
service or filling stations or sites for same and may fully equip such
stations or sites and may lease, operate, or license such stations or
grant a license to anyone to operate such stations for the distribution of petroleum products manufactured or sold by such refinerT
distributor, jobber, or wholesaler, or such refiner, distributor,
jobber, or wholesaler may employ anyone as agent of such refiner,
distributor, jobber, or wholesaler for the sale of petroleum products
thereat.
Rule 21.—No one shall make any delivery of naphtha, gasoline,
motor fuel, kerosene, range oil, lubricating oil, or heating oil at any
refinery, terminal, or bulk plant to a reseller into any wagon, truck,
tank wagon, or tank truck owned or operated by or for such
reseller. The term " reseller " as herein used shall not be construed
to include any agent selling such commodities on a commission
basis. Deliveries may be made in exchange for similar commodities
received by the person making the deliveries from the person to or
for whom the delivery is made.
Nothing in this rule contained shall apply to deliveries made to
bona fide jobbers either in their own vehicles, or for their account,
from refineries, terminals, or bulk plants.
Rule 22.—Refiners, distributors, jobbers, wholesalers, or retailers
shall not render any burner service in connection with the sale of
heating oils and fuel oils unless a fair and reasonable charge is made
for such service, which in no event shall be less than $10.00 per year
and an additional charge made for the replacement of any parts at
not less than their reasonable cost. Nor shall any refinery, distributor, jobber, wholesaler, or retailer grant a commission of any
kind to any person other than a regular employee of such refiner,
distributor, jobber, wholesaler, or retailer in connection with such
sales unless there is a contract between such refiner, distributor,
jobber, wholesaler, or retailer and a dealer, distributor, or manufacturer of oil burners providing for the payment of a commission to the
latter for the sale of heating oils and fuel oils to oil burner users where
such sales are evidenced by signed contracts. This rule is not to be
construed to prohibit advisory service.
Refiners, distributors, jobbers, wholesalers, or retailers shall not
sell to consumers of heating oils and fuel oils for delivery by tank
wagon or tank truck on a contractual basis for a period exceeding
twelve months.
No refiners, distributors, jobbers, wholesalers, or retailers shall
knowingly sell any heating oil or fuel oil to consumers in tank car
lots unless said consumers have facilities for receiving and storing
tank car lots.
Rule 23.—Refiners, distributors, jobbers, wholesalers, and retailers shall permit any duly authorized employee, agent, or representative of the Planning and Coordination Committee to make any
inspection or examination of books, records, contracts, plants, or
stocks of merchandise to determine if there has been any failure
PETROLEUM
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179
to comply with the provisions of this Code or any failure of the
refiner, distributor, wholesaler, or retailer, or by any other person,
firm, or corporation to pay any tax required to be paid because
of the receipt, sale, or use of any naphtha, gasoline, motor fuel,
lubricating oil, greases, kerosene, range oil, heating oil, or any other
petroleum product.
Rule 24.—Evasion of taxes in the sale of petroleum products gives
to evaders an undue and unlawful advantage over legitimate
marketers and is unfair competition within the meaning of the
National Industrial Recovery Act.
Rule 25.—The broadcasting or publishing, in any manner, of a
claim, representation, or implication which leads to a false or
incorrect conclusion in regard to the goods, prices, or service of the
advertiser, or in regard to the goods, prices, or services of a competitor, or which lays false claims to a policy or continuing practice of
generally underselling competitors, is an unfair and uneconomic
practice and is prohibited.
Rule 26.—In all sales of trade-marked or branded petroleum products for resale, refiners, distributors, jobbers, or wholesalers may,
by contract, require purchasers to sell at prices therein designated
for such resale; and may further require that if such products are
thereafter sold by such purchaser for resale, that the original
purchaser shall incorporate a similar provision in the contract with
its purchaser for resale.
Any purchaser who agrees to sell any refined petroleum products
at the prices designated therefor by the refiner, distributor, jobber,
or wholesaler from whom purchased shall make all sales thereof at
prices not less than those so designated.
Rule 27.—The unauthorized use by any person, firm, or corporation of the trade mark, trade slogan, insignia, or emblem of any
trade association in the petroleum industry, or the assertion or
claim, by advertisement or otherwise, by any person, firm, or
corporation that he or it is a member of any such association when
in fact not a member thereof, shall be an unfair trade practice.
Rule 28.—The provisions of this Code shall not prevent an association, society, or corporation organized or incorporated on the
cooperative plan under any law or any State, territory or District
of Columbia or of the United States as defined in Rule 29 of Article 5
òf this Code from paying patronage dividends to the members or
stockholders of such an organization in accordance with the provisions of the law, the articles of association, articles of incorporation, and/or by the laws of such association, society, or corporation, and the payment of such patronage dividends by such cooperative organizations shall not be construed as a violation of this
Code, nor shall the payment or distribution of such dividends be
construed under this Code as an unfair method of competition; it
being specifically understood that such dividends shall not be paid
to nonmembers or nonstockholders.
180
TEXTS OF CODES
Rule 29.—All farm cooperative societies, associations and/or corporations organized under the laws of any State, territory, or District
of Columbia or of the United States, membership in which is
restricted to persons whose chief source of livelihood is farming or
other cooperatives organized and existing on July 1, 1933, and
which comply with paragraph 12, section 103, of the Revenue Act
of 1932, and which distribute their patronage dividends to such
members only, shall be exempted from certain provisions of
Article V as hereinbefore specified; provided, however, they shall
be otherwise fully subject to the provisions of Article V.
Rule 30.—This Code shall not apply to contracts actually made
prior to the date on which this Code is formally approved. Upon
the effective date of this Code it shall apply to all such contracts as
soon as any cancellation or termination thereof can be legally
accomplished.
This Code shall apply to all contracts made after the date on which
this Code is formally approved, and shall apply to all renewals or
extensions made after that date of contracts made prior thereto.
The provisions of this Code shall not apply to transactions between
subsidiary or affiliated companies. Companies shall be considered to
be affiliated when one owns the majority of the outstanding capital
stock of the other, and when the majority of the outstanding capital
stock of each is held by the same individual, corporation, or association, or, in the case of cooperative associations as defined in Rule 29
of Article V of this Code, when the local associations collectively own
the majority of the outstanding stock of the central cooperative association. The parent companies owning the majority of stock in other
companies shall be responsible for the observance of such subsidiary
or affiliated company of the provisions of the rules of this Code.
The provisions of this Code shall not apply in respect to sales made
in the United States for export to foreign countries.
Rule 31.—A violation of any of the rules of this Code shall constitute an unfair method of competition.
In the event any rule of this Code, or part of any such rule, should
be disapproved or held invalid, such action shall in no way affect any
other rule or part thereof.
ARTICLE VI—TRANSPORTATION
The transportation subcommittee of the Planning and Coordination Committee shall investigate transportation practices and rates,
and shall from time to time recommend to the President such action
as may be appropriate to be taken under the National Industrial
Recovery Act, or otherwise.
ARTICLE VII—ORGANIZATION
SECTION 1. The administrative machinery for the effectuation of
this Code shall consist of:
PETROLEUM
181
INDUSTRY
(o) The Planning and Coordination Committee, representing the
petroleum industry and the National Recovery Administration.
(b) A Federal Agency to be designated by the President.
SEC. 2. The Planning and Coordination Committee shall consist of
fifteen members, three of whom (without vote) shall be representatives of the National Recovery Administration and appointed by the
President and twelve of whom shall be representatives of the petroleum industry, and, for purposes of immediate organization, appointed by the President from nominations made by a group or
groups within the industry in such manner as may be prescribed
by the President.
SEC. 3. The Planning and Coordination Committee is set up to
cooperate with the Administrator as a planning and fair-practice
agency for the petroleum industry. Such agency may from time to
time present to the Administrator recommendations which will tend
to effectuate the operation of the provisions of this Code and the
policy of the National Recovery Act and is charged in particular
with endeavoring to promote the fullest possible cooperation with
State regulatory bodies.
S E C 4. The Planning and Coordination Committee shall have a
Chairman from its own membership and the following working technical subcommittees:
(a) Statistical Committee.
(b) Production Committee.
(c) Refinery Committee.
(d) Marketing Committee.
(e) Accounting Committee.
(/) Labor Committee.
(g) Adjustment Committee.
(h) Transportation Committee.
SEC. 5. The Federal Agency designated by the President shall
make such estimates of petroleum requirements and such recommendations, allocations, and inventories as may be required for the
effectuation of this Code.
SEC. 6. In order to provide necessary data upon which to base its
studies for the purposes of this Code, the Federal Agency designated
by the President and the Planning and Coordination Committee are
empowered to call upon the industry for the necessary statistical and
other reports and any refusal to supply reports is a violation of
this Code.
APPENDICES
APPENDIX
A
Schedule of Equipment Prices to be Used as a Basis of Purchase or
Sale Between Oil Companies
„„„N°îh
Lower Than
All makes of Blind Pumps, including Duplex and all sizes 1 to 5 gallons
capacity
Î20.00
BLIND GASOLINE PUMPS
T
182
TEXTS OF CODES
N
VISIBLE PUMPS
°t
Lower Than
5-gallon dry or wet hose Visible, 10- or 15-gallon Dry Hose Visible.
Dual Bowl Visible (all types), 5-gallon blind pumps with 5 or 10
Visible attachment, Remote Control Visible Air-lift Visible:
All of the above
$20.00
10- and 15-gallon Visible Web Hose, all makes
40.00
10- or 15-gallon Visible Web Hose, electric power operated. . 50.00
ELECTRIC
METER
T
PUMPS
Electric Flow Meter Pumps, with or without air separator
$45.00
Electric Displacement Meter pumps, without air separator
70.00
Electric Displacement Meter Pumps, with air separator
85.00
On any of the above pumps furnished in Twin type the price
shall be double t h a t of the single unit.
GASOLINE BUGGIES OR WHEEL
TANKS
Any capacity, identified by Underwriters' Label
Same as above, not identified by Underwriters
$50.00
25.00
SKID TANKS WITH PUMPS
Skid tanks used for gasoline, kerosene, or distillate, up to 550-gallon
capacity, equipped with pump, any type
$25.00
COMBINATION GASOLINE OR KEROSENE UNDERGROUND TANKS
WITH PUMPS
100- to 200-gallon capacity, with 1 gal. or rotary pump
MISCELLANEOUS
PUMP
$25.00
EQUIPMENT
Hydraulic Systems, Drop Cylinder Jobs, Remote Control Systems,
and any other special type of equipment, including airport equipment and equipment used to serve marine trade, etc., shall be
considered special equipment. Purchase or sale price shall be
arrived at by joint appraisal on the premises.
UNDERGROUND TANKS
Underground Tanks shall be bought or sold at prices shown below,
which include all installation costs, labor, materials, freight, etc., up
to and including the installation of the pump itself (value of pump
not included) on the following basis:
280-gallon tank
550-gallon tank
1,000-gallon tank
2,000-gallon tank
$35.00
50.00
75.00
100.00
These prices are for tanks of any specification, galvanized or black
steel as now installed.
Capacities of tanks shown above are normal sizes and may vary
10 % more or less. For each additional pump installed on one tank
add $10.00 for installation cost.
PETROLEUM
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Where the original installation of the tank and piping involved the
removal and replacing of concrete, an allowance of 25cents per square
foot, with a maximum allowance of 60 square feet for each tank and
60 square feet for pipe trench, shall be added to price of the
respective size tank.
Where tanks are installed under unusual conditions due to ordinances or regulatory restriction which resulted in excessive costs,
the purchase or sale will be based on the actual cost of such installation less 10 % per annum depreciation on equipment and material
used plus actual labor cost;
Odd-size tanks not covered by the above classification shall be
bought and sold at a price interpolated between those specified.
Underground tanks, and any part of the underground installation
in connection therewith, may be repaired or replaced by the owner
thereof. If replaced, the new tank shall be of the same capacity as
original and the original removed from the premises or made unfit for
use.
AUTOMOBILE LIFTS, RACKS, AND PITS
Automobile lifts of plunger type will be bought or sold at the
invoice price date of seller's purchase, plus freight, less 15 % per
annum depreciation from date of invoice, plus a flat installation
charge of §40.00, plus an allowance for concrete, if any, installed by
owner of lift, up to a maximum of 400 square feet, based on 20 cents
per square foot.
Portable steel automobile lifts, grease and wash racks will be
bought or sold on invoice price date of seller's purchase plus freight,
less 25 % for depreciation and obsolescence per annum from date of
invoice. No allowance for installation cost.
Pits and nonportable racks will be bought or sold on a basis of
joint appraisal on the premises at time of exchange.
COMPRESSORS
•All air compressors will be bought or sold on a basis of invoice
price date of seller's purchase, plus freight, less 25 % per annum
depreciation and obsolescence from date of invoice. No installation
cost considered.
KEROSENE EQUIPMENT
Kerosene equipment shall be bought or sold at the following
for the respective sizes and classes.
60-to 65-gaIlon square kerosene tank equipped with pump . . . .
110-to 112-gallon square kerosene tank equipped with pump . . . .
150-to 165-gallon square kerosene tank equipped with pump . . . .
200-to 220-gallon square kerosene tank equipped with pump . . . .
prices
$12.00
15.00
25.00
30.00
ROUND PORTABLE KEROSENE TANKS
Equipped with pump.
60-to 120-gallon capacity
$6.00
184
TEXTS OF CODES
RECTANGULAR KEROSENE TANKS
Equipped with pump.
60-to 65-gallon capacity
?12.00
CELLAR KEROSENE OUTFITS
Equipped with stand pipe and pump.
60- to 120-gallon capacity installed
each $40.00
250-to 270-galIon capacity installed
each 70.00
50-to 120-gallon miscellaneous faucet tanks and tin pump tanks . . 2.00
LUBRICATING
50-gallon
60-gallon
15-gallon
30-gallon
60-gallon
60-gallon
90-gallon
OIL
EQUIPMENT
round lubricating oil tank
square lubricating oil tank
rectangular lubricating oil tank
rectangular lubricating oil tank
rectangular lubricating oil tank
2-compartment lubricating oil tank
3-compartment lubricating oil tank
$3.00
3.00
3.00
7.00
9.00
10.00
15.00
Any of the above lubricating-oil equipment equipped with meter
adds $1.50 to the above price.
l-quart oil bottles
each $0.10
Tray for 1-quart oil bottles
0.25
l-quart barrel pumps
1.00
Miscellaneous lubricating equipment such as air systems, built-in
installations, underground installations, miscellaneous portable
equipment, etc., not specifically mentioned in the above lubricatingoil equipment shall be considered special and the purchase or sale
price shall be arrived at by joint appraisal on the premises.
GREASE EQUIPMENT
25-lb. grease bucket or kit without motor
$3.00
Same as above with motor
7.00
100-lb. grease outfit without meter
3.00
Same as above with meter
7.00
No charge for dolly in connection with the 100-lb. grease outfit.
Miscellaneous grease equipment such as built-in installations,
portable equipment, power guns, special portable guns, hand guns,
grease gun boards, etc., not specifically mentioned in the above
grease equipment shall be considered special and the purchase or
sale price shall be arrived at by joint appraisal on the premises.
Where grease boards furnished by supplier carry trade mark
advertising which cannot be readily effaced by any practical means,
supplier shall remove them from the premises.
MISCELLANEOUS EQUIPMENT
Air and water standards, flood lights, and lamp posts or any
equipment not specifically mentioned herein will be bought or sold
on a basis of joint appraisal on the premises at the time of exchange.
PETROLEUM
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185
Sign posts will be considered as property of oil company and shall
be removed.
All signs owned by oil company may be bought or sold by joint
appraisal.
ARBITRATION
In case any dispute arises over prices and values of all the
respective equipment herein mentioned which do not definitely
state a price, the suppliers involved shall choose an arbitrator who
shall be a disinterested representative from some other oil company
in the immediate vicinity, to whom the suppliers shall present their
case. The decision of the arbitrator chosen shall be final.
APPENDIX B
MAXIMUM CREDIT TERMS
Credit Terms
(1) Gasoline and Kerosene Sales:
In tank-car and barge shipments
*
'
In tank-wagon deliveries
Service-station deliveries
Coupon books, in denominations of not less than
ten dollars, may be sold at face value, without
discount, for cash, or on credit payable net in
thirty days. Coupons books issued by any
company may be redeemed by any retail outlet
where the trade-marked products of that company are sold.
One percent 10 days
from date of shipment, net 30 days.
One percent on sight
draft payments.
Load-to-load, for net
15th proximo. No
cash discount.
Coupons or payments,
net in thirty days.
Truck-Train Deliveries from refineries and terminals One percent 10 days
or bulk plants to jobbers' bulk plants (3,500 gallons
from date of shipor over).
ment, net 30 days.
One percent on sight
draft payments.
(2) Gas Oil and Fuel Oil Sales:
In tank-car or barge shipments, or deliveries to ships' One percent 10 days
burners.
from date of shipment, net 30 days.
One percent on sight
draft payments.
Truck-Train Deliveries:
From refineries and terminals or bulk plants to One percent 10 days,
jobbers' bulk plants (3,500 gallons or over).
from date of shipment, net 30. One
percent on sight draft
payments.
186
TEXTS OF CODES
In Tank-Wagon Deliveries:
To resellers
To consumers
(3)
.
Load-to-load or net
15th proximo.
Net 15th proximo.
L u b r i c a t i n g - O i l a n d Grease Sales:
In tank and drum-car shipments:
Unbranded oils and greases
Branded oils and greases
L.C.L. Shipments:
All oils and greases
Truck and tank-wagon deliveries:
All oils and greases
Service-Station Deliveries . '
One percent 10 days
from date of shipment, net 30 days or
30-60-90-day trade
acceptances.
One percent 10 days
from date of shipment, net 30 days, or
30-60-90-day trade
acceptance.
One percent 10 days or
net 15th proximo.
One percent 10 days,
net 15th proximo.
Coupons or payments
net in 30 days.
PHOTOGRAPHIC MANUFACTURING
INDUSTRY
EXECUTIVE
ORDER
August 19, 1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Photographic Manufacturing Industry,
and hearings having been held thereon, and the Administrator
having rendered his report containing an analysis of the said Code of
Fair Competition, together with his recommendations and findings
with respect thereto, and the Administrator having found that the
said Code of Fair Competition complies in all respects with the
pertinent provisions of Title I of said Act, and that the requirements
of clauses (1) and (2) of subsection (a) of Section 3 of the said Act
have been met :
Now, therefore, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said Code of
Fair Competition be and is hereby approved, subject to the following
condition :
(1) To effectuate further the policies of the Act, a Photographic
Manufacturing Industry Committee be created to cooperate with the
Administrator as a Planning and Fair Practice Agency for the
Photographic Manufacturing Industry, which Committee shall
consist of seven representatives of the Photographic Manufacturing
Industry elected by a fair method of selection, to be approved by the
Administrator, and three members without vote appointed by the
Administrator.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
Code of Fair Competition for the Photographic Manufacturing Industry,
as Approved by President Roosevelt, Subject to the Provisions
of Foregoing Executive Order
To effectuate the policy of Title I of the National Industrial
Recovery Act, during the period of the emergency, by reducing and
relieving unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of the public,
188
TEXTS OF
CODES
employees and employers and otherwise stabilizing the Photographic Manufacturing Industry and by increasing the consumption
of industrial and agricultural products by increasing purchasing
power, and in other respects, the following provisions are established
as a Code of Fair Competition for the Photographic Manufacturing
Industry :
I
Definitions.—A. The term " Photographic Manufacturing Industry " as used herein is defined to mean the manufacture of any of
the following photographic products:
(a) Cameras, exclusive of professional motion-picture cameras
using film having a width of 35 mm. or greater.
(b) Motion-picture projectors, exclusive of professional motionpicture projectors using film having a width of 35 mm. or greater.
(c) Amateur and professional photographic film, plates, and
paper.
(d) Photographic accessories, equipment, and supplies, except
photographic mounts and photographic chemicals.
B. The term " employees " as used herein shall include all persons
employed in the conduct of such operations, excepting those persons
who serve in executive, administrative, supervisory, sales, special
accounting, and/or technical capacities.
C. The term " employers " shall include partnerships, associations,
trusts, including trustees in bankruptcy and receivers, corporations,
and all persons who employ labor in the conduct of any branch of the
Photographic Manufacturing Industry as defined above.
D. The term " effective date ", as used herein, is defined to be the
tenth day after the approval by the President of the United States
of this Code or any part thereof or addition thereto.
II
On and after the effective date the minimum wage that shall be
paid any employee in the Photographic Manufacturing Industry
shall be at the rate of thirty-five cents ($.35) an hour, or fourteen
dollars ($14.00) per week for forty (40) hours of labor except that
learners may be paid not less than eighty percent. (80%) of such
minimum wage during a period limited to sixty (60) days ; that the
total amount paid to such learners shall not exceed in any calendar
month five percent. (5%) of the total wages paid to all employees of
such employer during such month ; and provided further, that the
provisions of this paragraph shall not apply to apprentice machinists
and apprentice toolmakers who are now under contract with their
employer under forms approved by the National Metal Trades
Association or any branch of such association.
Ill
On and after the effective date the maximum hours of labor for
employees shall be forty (40) hours per week, subject to the following
limitations and exceptions:
PHOTOGRAPHIC MANUFACTURING INDUSTRY
189
A. That the average hours worked per week by any individual employee shall not exceed the maximum established when figured over
a period of three (3) months.
B. That the maximum hours established shall not apply in cases of
emergency or in those departments or divisions of the Photographic
Manufacturing Industry in which seasonal or peak demand places an
unusual and temporary burden for production upon such departments or divisions, except that in all such cases no employee shall be
permitted to work more than an aggregate of one hundred forty-four
(144) hours per year in excess of the maximum limitations above
provided.
C. That the maximum hours established shall not apply to employees engaged in research and experimental capacities or to
emulsion makers engaged in secret processes, or to designing and
tooling engineers.
D. That the maximum hours established shall not apply to repair
shop crews, outside crews, and cleaners, but further provided that all
such employees shall be paid at the rate of time and one half for all
hours per week over forty.
IV
On and after the effective date employers shall not employ or have
in their employ any person under the age of sixteen (16) years.
V
As required by Section 7 (a) of Title I of the National Industrial
Recovery Act the following provisions are conditions of the Code :
" (1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection;
" (2) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
" (3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President."
VI
With a view to keeping the President of the United States and the
Administrator informed as to the observance or nonobservance of
this Code, and as to whether the Photographic Manufacturing Industry is taking appropriate steps to effectuate in all respects the
declared policy of the National Industrial Recovery Act, each employer shall prepare and file with the Code Committee of the Photographic Manufacturing Industry, composed of seven members,
190
TEXTS OF CODES
hereinafter appointed, and at such times and in such manner as may
be prescribed, statistics covering number of employees, wage rates,
employee earnings, hours of work, and such other data or information as the Code Committee of the Photographic Manufacturing
Industry may from time to time require for the use of the
Administrator.
Except as otherwise provided in the National Industrial Recovery
Act all statistics, data and information filed in accordance with the
provisions of Article VI shall be confidential, and the statistics, data
and information of one employer shall not be revealed to any other
employer except that for the purpose of administering or enforcing
the provisions of this Code, the Code Committee of the Photographic
Manufacturing Industry shall have access to any and all statistics,
data and information that may be furnished in accordance with the
provisions of this Code.
If formal complaint shall be made to the Code Committee that any
of the provisions of this Code have been violated by any employer
in the Photographic Manufacturing Industry, the Code Committee
shall promptly investigate the facts and to that end may cause such
examination to be made as may be deemed necessary in the circumstances, the result of such examination to be reported, if required, to
the National Industrial Recovery Administration.
VII
If any employer in the Photographic Manufacturing Industry is
also an employer of labor in any other industry the provisions of this
Code shall apply to and affect only that part of the business of such
employer which is included in the Photographic Industry.
VIII
This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provisions of Section 10 (b) of the National Industrial Recovery Act, from
time to time to cancel or modify any order, approval, license, rule
or regulation, issued under Title I of said Act and specifically to the
right of the President to cancel or modify his approval of this Code
or any conditions imposed by him upon his approval of this Code
IX
Such of the provisions of this Code as are not required to be included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in circumstances or experience may indicate. It is contemplated that
from time to time supplementary provisions to this Code or additional conditions will be submitted for the approval of the President
to prevent unfair competition in prices and other unfair destructive
and competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act, provided,
PHOTOGRAPHIC MANUFACTURING INDUSTRY
191
however, t h a t no modification or amendment of this Code shall be
made by the members of the Code without the consent in writing of
members employing at the time at least two-thirds in number of the
employees subject to the provisions of this Code.
X
All of the provisions of this Code, unless revised, modified, or repealed as hereinabove provided, shall remain in full force and effect
until the expiration date of Title I of the National Industrial
Recovery Act.
XI
M. B. Folsom is hereby appointed Secretary of the Code Committee. His duties shall be to accept and file applications for membership in the Code, to keep records of all proceedings relating to this
Code, and to conduct correspondence with members of the Code
relating to all matters arising under the Code. In case of his
resignation or death or inability for any reason to act, his successor
shall be selected by the then members of the Code.
XII
L. Dudley Field, E. H. Gates, Sherman Hall, Thomas J. Hargrave,
J. H. McNabb, Gilbert E. Mosher, and Richard Salzgeber are hereby
appointed the seven members of the Code Committee. Any member
of the Code Committee may act either in person or by proxy. In
case of the resignation, death, or incapacity to act of any member
of the Code Committee, his successor shall be selected by the then
members of the Code.
By
L. DUDLEY F I E L D .
E. H . GATES.
SHERMAN H A L L .
THOMAS J. HARGRAVE.
J. H. M C N A B B .
GILBERT E. MOSHER.
RICHARD SALZGEBER.
AUTOMOBILE MANUFACTURING
INDUSTRY
EXECUTIVE ORDER
August 26, 1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Automobile Manufacturing Industry,
and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said Code of Fair
Competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section 3 of the said Act have been
met:
Now, therefore, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested in me by Title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said Code of
Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HUGH S. JOHNSON.
Code of Fair Competition for the Automobile Manufacturing Industry
as Approved by President Roosevelt
The following provisions are established as a Code of Fair Competition for the Automobile Manufacturing Industry:
I—DEFINITIONS
The term " motor vehicles " as used herein means automobiles,
including passenger cars, trucks, truck tractors, busses, taxicabs,
hearses, ambulances, and other commercial vehicles, for use on the
highway, excluding motorcycles, fire apparatus, and tractors other
than truck tractors.
The term " Industry " as used herein includes the manufacturing
and assembly within the United States of motor vehicles and bodies
therefor, and of component and repair parts and accessories by
manufacturers or assemblers of motor vehicles.
AUTOMOBILE MANUFACTURING INDUSTRY
193
The term " employees " as used herein means all persons employed
in the conduct of such operations.
The term " employers " as used herein means all individuals,
partnerships, associations, trusts, and corporations in the Industry
by whom such employees are employed.
The term " Chamber " as used herein means National Automobile
Chamber of Commerce, a trade association having its office at
No. 366 Madison Avenue, New York City.
The term " effective date " as used herein means the tenth day
after this Code shall have been approved by the President of the
United States.
The term " expiration date " as used herein means December 31,
1933, or the earliest date prior thereto on which the President
shall by proclamation or the Congress shall by Joint Resolution
declare t h a t the emergency recognized by Section 1 of the National
Industrial Recovery Act has ended.
The term " city " as used herein includes the immediate trade
area of such city (which in the case of Detroit shall be deemed to
include Pontiac and Flint).
II—WAGES
On and after the effective date, and to and until the expiration
date:
The minimum wages of factory employees covered hereby shall
be at the following hourly rates regardless of whether the employee
is compensated on the basis of time rate or piece rate or otherwise :
Cents
in cities having 500,000 population or over
43
in cities having 250,000 and less than 500,000 population . . 41%
in cities or towns having less than 250,000 population . . .
40
Provided, however, t h a t apprentices and learners and females
not doing the same work as adult males shall be paid, not less than
87 y2 percent, of said minimums, but the number of such apprentices
and learners and females not doing the same work as adult males
employed by any employer shall not exceed 5 percent, of the total
number of factory employees of such employer including subsidiary
and affiliated companies.
Equitable adjustment in all pay schedules of factory employees
above the minimums shall be made on or before September 15,
1933, by any employers who have not heretofore made such adjustments, and the first monthly reports of wages required to be filed
under this Code shall contain all wage increases made since May 1,
1933.
The minimum wages qf office and salaried employees covered
hereby shall not be less t h a n the following weekly rates :
in cities having 500,000 population or over, at the rate of §15 per week.
in cities having 250,000 and less than 500,000 population, at the rate
of S14.50 per week.
in cities or towns having less than 250,000 population, at the rate of
$14 per week.
13
194
TEXTS OF
CODES
III—HOURS
There are substantial fluctuations in the rate of factory production
throughout each year, due mainly to the concentration of a large
part of the annual demand for cars within a few months, and also
to the slowing down of employment in connection with changes in
models and other causes beyond the Industry's control.
To lessen the effect on employment of these conditions, it has been
the policy of the Industry to adjust working hours, in order to retain
the greatest number of employees and so far as practicable adjust
the manufacturing schedules of component parts to allow a more
uniform schedule of hours. The Industry will continue this policy.
The progressive falling-off of retail sales during the years of
depression, resulting in the necessity of repeated adjustments downward in production schedules, had its important influence in causing
an abnormal fluctuation in employment schedules.
Before the presentation of this Code, the Industry had gone far
in spreading available work to relieve unemployment and under
this Code it proposes to spread the work as far as practicable in its
judgment, consistent with the policy of giving each employee a
reasonable amount of work in each year.
For this purpose it is made a provision of this Code t h a t employers
shall so operate their plants t h a t the average employment of all
factory employees (with exceptions stated below) shall not exceed
thirty-five hours per week for the period from the effective date to
the expiration date, and the hours of each individual employee shall
so far as practicable conform with this average and shall in no case
exceed the same by more than three percent.
In order to give to employees such average of thirty-five hours
per week, it will be necessary at times to operate for substantially
longer hours, but no employee shall be employed for more than six
days or 48 hours in any one week, and all such peaks shall be absorbed in such average.
In order that production and employment for the main body of
employees may be maintained with as few interruptions as possible,
it is necessary, and it is a part of this Code, that the supervisory
staff and employees engaged in the preparation, care, and maintenance of plant machinery and facilities of and for production, shall
be exempt from the weekly limitations above provided, but the
hours of employment of any such exempted employee engaged in
the preparation, care and maintenance of factories and machinery
of and for production shall not exceed 42 hours per week averaged
on an annual basis.
Office and other salaried employees, covered hereby, receiving less
than $35 per week shall not work more than 48 hours in any one
week and not more than an average of 40 hours per week for the
period from the effective date to the expiration date. Employees
receiving more than $35 per week and executives and managerial
and supervisory staffs are not subject to any hourly limitations.
The Industry recognizes the serious problem of major fluctuations
in production due to concentrated seasonal customer demand and
AUTOMOBILE MANUFACTURING INDUSTRY
195
changes in the rate of production caused by changes in models,
which changes are necessary. The Chamber pledges itself to make
a further study of this problem in an effort to develop any further
practical measures which can be taken to provide more stable and
continuous employment and to reduce to a minimum the portion of
employees temporarily employed and to submit a report thereon
to the Administrator by December 1, 1933.
IV—CHILD LABOR
Employers in the Industry shall not employ any person under the
age of 16 years. The Chamber states that child labor has at no
time ever been a factor in the Automobile Industry.
V—REPORTS AND STATISTICS
Each employer engaged in the Industry will furnish to the
Chamber as hereinbelow provided, approximately every four weeks,
duly certified reports in such form as may hereafter be provided
showing actual hours worked by the various occupational groups of
employees and wages paid.
VI—ADMINISTRATION
For the purpose of supplying the President and the Administrator
with requisite data as to the observance and effectiveness of this
Code and the administration thereof, the Chamber is hereby
designated—
(a) To collect from the members of the Industry all data and
statistics called for by this Code, or required by the President, or
reasonably pertinent to the effectuation of Title I of the National
Industrial Recovery Act, and compile the same, and disseminate
among the members of the Industry summaries thereof, all in such
form and manner as the Chamber shall reasonably prescribe subject
to approval by the Administrator.
(b) To represent the Industry in conference with the Administrator with respect to the application of this Code and of said Act
and any regulations issued thereunder; provided, however, that as
regards all matters mentioned in this paragraph (6), the Chamber
shall have no power to bind the Industry or any subdivision thereof.
The President or the Administrator may designate a representative
to participate in such conferences, who shall have access to all data
and statistics collected by the Chamber as above provided. The
Chamber or its authorized committee or agent shall hold itself in
readiness to assist and keep the Administrator fully advised, and
to meet with the Administrator's representative from time to time
as requested to consider and study any suggestions or proposals
presented upon behalf of the Administrator or any member of the
Industry regarding the operation, observance, or administration of
this Code.
(c) The duties of the Chamber above referred to shall be exercised by the Chamber by its Board of Directors, which may delegate
196
TEXTS OF CODES
any of said duties to such agents and committees as it may appoint
whose personnel, duties, and powers may be changed.
VII
Employers in this Industry shall comply with the following
requirements of Section 7 (a) of Title I of the National Industrial
Recovery Act.
Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection ; (2) no employee and
no one seeking employment shall be required as a condition of
employment to join any company union or to refrain from joining,
organising, or assisting a labor organization of his own choosing;
and (3) employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved or prescribed by the President.
Without in any way attempting to qualify or modify, by interpretation, the foregoing requirements of the National Industrial
Recovery Act, employers in this Industry may exercise their right
to select, retain, or advance employees on the basis of individual
merit, without regard to their membership or nonmembership in any
organization.
VIII
As required by Section 10 (b) of Title I of the National Industrial
Recovery Act, the following provision is contained in this Code:
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under said Title.
IX
By presenting this Code, the Chamber and others assenting hereto
do not thereby consent to any modification thereof and they reserve
the right to object individually or jointly to any such modifications.
X
Such provisions of this Code as are not required to be included
therein by the National Industrial Recovery Act may, upon the
application of the Industry or a subdivision thereof and with the
approval of the President, be modified or eliminated. It is contemplated that from time to time supplementary provisions to
this Code or additional Codes may be submitted in behalf of the
Industry or various subdivisions thereof for the approval of the
President.
BITUMINOUS COAL INDUSTRY
At the time when the present Report went to press the International Labour Office had not received the complete official texts
of the Code and regional agreements as approved by the President
for the bituminous coal industry. In view, however, of the
exceptional interest attaching to this industry it was decided to
reproduce such official texts as were available (namely, the Executive Order of 18 September 1933 and the Executive Order and
Schedule A as approved 29 September 1933) together with the
texts of the Code and Appalachian Agreement as given in the
New York Times of 18, 22 and 23 September 1933.
EXECUTIVE ORDER
September 18, 1933.
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a,Code
of Fair Competition for the Bituminous Coal Industry, and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said Code of Fair
Competition, together with his recommendations and findings
with respect thereto, and the Administrator having found that the
said Code of Fair Competition complies in all respects with the
pertinent provisions of Title I of said Act and that the requirements
of Clauses (1) and (2) of subsection (a) of Section 3 of the said
Act have been met:
Now, therefore, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Administrator and do order that the said Code
of Fair Competition be and is hereby approved, subject to the
following conditions:
(1) There shall be added to the first paragraph of Section 3 of
Article VII of the Code the following sentence:
" All coal producers subject to the Code shall furnish to any
government agency or agencies designated by the Administrator
such statistical information as the Administrator may, from time
to time, deem necessary for the purposes recited in Section 3 (a)
9
198
TEXTS OF CODES
of the National Industrial Recovery Act and any reports and other
information collected and compiled by a Code authority, as heretofore provided, shall be transmitted to such government agencies as
the Administrator may direct."
(2) There shall be added after the first sentence of Section 4 of
Article V I I the following sentence:
" The President may appoint not more than three members
of the Industrial Board in addition t o , or in substitution for one
or more of, the aforesaid six members of the divisional Code authorities."
(3) Schedule A as attached to the Code recommended by t h e
Administrator is approved with the understanding that any basic
minimum rates not fixed therein m a y be approved or prescribed
b y the President at any time prior to the effective date of this Code
b y a supplementary Executive Order.
(4) Because it is evident t h a t attempts by those submitting
Codes to interpret Section 7 (a) of the National Industrial Recovery
Act have led to confusion and misunderstanding such interpretations
should not be incorporated in Codes of Fair Competition. Therefore, Paragraph (b) of Article V must be eliminated without, by
this exclusion, indicating disapproval in any way of the joint
statement of the Administrator and general counsel of the National
Recovery Administration, which has been attached to the Code as
Schedule B and was incorporated by reference in said Paragraph
(b) of Article V.
(5) The exception to the definition of " employee " in Article II
belongs in Article I I I . Accordingly, the words " except members
of the executive, supervisory, technical and confidential personnel "
are stricken from the third paragraph of Article II. These same
words are inserted in the first paragraph of Article I I I after the
words " No employee."
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
Code of Fair Competition for the Bituminous Coal Industry,
as Approved by President Roosevelt, Subject to the Provisions of the
Foregoing Executive Order1
ARTICLE
I—PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act the following provisions are submitted as a Code of
Fair Competition for the bituminous coal industry and upon
approval by the President shall be the standards of fair competition
for this industry.
1
New York Times, September 18, 1933. This text, as published in the
New York Times, has been checked and found to agree (account being taken
of the amendments effected by the Executive Order of 18 September) with an
officiai text of Articles I-XI, as amended and approved by the President.
*
BITUMINOUS COAL INHUSTRY
ARTICLE
199
II—DEFINITIONS
As used in this Code the terms " industry " as applied to the
bituminous coal industry means the production and original sale
of all kinds of coal (except anthracite), lignite, and the production
and original sale of coke other than by-product coke.
The term " employer " includes any person employing labor in
any phase of the industry.
The term " employee " includes all persons employed in the
industry except members of the executive, supervisory, technical
and confidential personnel.
The term " Administrator " means the official designated by the
President to administer the National Industrial Recoverv Act.
ARTICLE III—MAXIMUM
HOURS OF LABOR
No employee shall be employed in excess of forty hours in any
calendar week after the effective date of this Code. No employee
shall be required or permitted to work more than eight hours in
any one day at the usual working places or otherwise in or about
the mine (exclusive of lunch period), whether paid by the hour or
on a tonnage or other piece-work basis.
There shall be excepted from the foregoing limitations (a)
employees required because of accidents which temporarily necessitate longer hours for them; (b) supervisors, clerks, technicians
and that small number of employees at each mine whose daily
work includes the handling of man trips and/or haulage animals and
coal in transit and those who are required to remain on duty
while men are entering and leaving the mine.
The foregoing maximum hours of work shall not be construed
as a minimum; and if at any mine a majority of the employed
workers express their desire, by written request to the employer, to
share available work with bona fide unemployed workers of the same
mine, the number of hours' work may be adjusted accordingly
by mutual agreement between such employed workers and their
employers.
ARTICLE
IV—MINIMUM
R A T E S OF
PAY
The basic minimum rate for inside skilled labor and the basic
minimum rate for outside common labor shall be the rate hereinafter set forth in Schedule A for each district therein described
for each such classification of labor, with the understanding t h a t
other classifications of employment will maintain their customary
differentials above or below said basic minimum rates and t h a t payments for work performed on a tonnage or other piece-work basis
will maintain their customary relationship to the payments on a
time basis provided in said basic minimum rates.
200
TEXTS OF CODES
ARTICLE V—CONDITIONS OF EMPLOYMENT
(a) Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and
shall be free from the interference, restraint or coercion of employers
of labor, or their agents, in the designation of such representatives
or in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection; (2) no
employee and no one seeking employment shall be required as a
condition of employment to join any company union or to refrain
from joining, organizing or assisting a labor organization of his
own choosing; and (3) employers shall comply with the maximum
hours of labor, minimum rates of pay and other conditions of
employment approved or prescribed by the President.
(b) In the submission or acceptance of this Code the interpretation is adopted of the requirements transcribed in the foregoing
Paragraph (a) from Section 7 (a) of the National Industrial
Recovery Act, which was jointly announced by the Administrator
and general counsel of the National Recovery Administration on
August 24, 1933, a copy of which is attached to this Code as
Schedule B.
(c) Except as otherwise hereinafter provided, all coal mined
on a tonnage basis shall be weighed and the miner paid on the basis
of a 2,000 or 2,240 pound ton. The miners shall have the right to
a checkweighman, of their own choosing, to inspect the weighing of
coal; Provided, that where mines are not now equipped to weigh
coal a reasonable time may be allowed to so equip such mines; and
provided, that in any case where rates of pay are based on any
other method than on actual weights, the miners shall have the
right to check the accuracy and fairness of the application of such
methods, by representatives of their own choosing.
(d) The net amount of wages due shall be paid semi-monthly
in lawful money or par-check at the option of the operators. Any
deductions from employees' pay, if not a matter of agreement, shall
be in conformity with such general rules and regulations as the
Administrator may prescribe for the purpose of preventing unfair
deductions, or those which may in effect lower the rates of pay
herein provided.
(e) Employees other than maintenance or supervisory men
or those necessary to protect the property shall not be required as a
condition of employment to live in homes rented from the employer.
(/) No employee shall be required as a condition of employment to trade at the store of the employer.
(g) No person under seventeen (17) years of age shall be
employed inside any mine or in hazardous occupations outside
any mine, provided, however, that where a State law provides a
higher minimum age, the State law shall govern ; no person under
the age of sixteen (16) shall be employed in or about a mine.
(h) As soon as possible after the adoption of this Code, the
National Recovery Administration shall undertake, through a
BITUMINOUS COAL INDUSTRY
201
designated committee or agency, an investigation for the purpose
of reporting on or before December 31, 1933: Upon (a) the practicability and cost (assuming the maintenance of existing rates of
pay) of applying to bituminous coal mining a shorter work day
and work week; (b) The effect of and advisability of revising
wage differentials in the various divisions and districts of the
industry and, in the event of recommended change, specification
of the amount thereof; (c) The sales prices obtained for coal,
or reasonably to be anticipated, up to the time of the report, for
the purpose of determining whether wages and employment can be
further increased or maintained without imposing undue burdens
upon the industry.
On January 5,1934, there shall be held a conference between representatives of employers and employees operating under this Code
together with representatives of the National Recovery Administration, for the purpose of determining what, if any, revisions may
be desirable at that time of the wages, hours and differentials, or
any other requirements of this Code, on the basis of conditions
then existing and the report of representatives of the National
Recovery Administration made as hereinbefore provided.
Unless revised by mutual agreement, as the result of said conference beginning January 5, 1934, the hours of work, minimum
rates of pay and wage differentials as set forth in this Code shall
continue in effect until April 1, 1934.
ARTICLE VI—UNFAIR PRACTICES
SECTION 1. The selling of coal under a fair market price
(necessary to carry out the purposes of the National Industrial
Recovery Act, to pay the minimum rates herein established, and
to furnish employment for labor) is hereby declared to be an
unfair competitive practice and in violation of this Code. In order
to determine the fair market price, agencies shall be established,
as hereinafter provided, and sales of coal at any time at a price
less than a fair market price determined and published, as hereinafter
provided, shall create against any person selling at a lower price
a prima facie presumption that such a person is engaged in destructive price-cutting and unfair competition. It shall be proper
in determining such fair market price to take into consideration,
in addition to the matters above set forth, also competition with
other coals, fuels and forms of energy or heat production.
SEC. 2. The fair market prices of coal of any grade and character
referred to in the next preceding section, subject to the power of
review hereinafter stated, shall be:
(a) The minimum prices for the various grades and sizes in
the various consuming markets which may be established for future
application by a marketing agency or by marketing agencies, of
whatever form or howsoever constituted, now existing or hereafter
created or organized, acting for coal producers truly representative
202
TEXTS OF CODES
of at least two-thirds of the commercial tonnage of any coal district
or group of districts, such minimum prices to be effective when and
as announced as provided in Section 4 hereof.
(b) The minimum prices for the various grades and sizes in
the various consuming markets, where no such marketing agency
exists, which may be established for future application by the
respective Code authorities hereinafter set up, for their respective
areas, after having given consideration to the various conditions
and circumstances entering into the sale of each grade and class
of commercial coal produced in the district or group of districts
it represents, such minimum prices to be effective when announced
as provided in Section 4 hereof.
(c) As a basis for determining the fair market price to be
announced and published, as provided in the two preceding
clauses, the Code authorities shall utilize the classifications of
coals made by such agencies as are referred to in Clause (a) of
this section and shall classify the coals in said districts not sold by
such agencies and also the coals in the districts referred to in Clause
(b) of this section to which the various prices apply. Said Code
authorities shall at all times provide and keep open an office during
business hours to which any coal producer in said districts and any
representative of the Administrator may apply for information
with respect to said classifications and prices.
(d) The term " marketing agency " or " agency " as used in
this Article shall include any trade association of coal producers
complying with the requirements of a marketing agency and
exercising the functions thereof.
SEC. 3. The fair market prices established for future application
under the provisions of Section 2 (a) shall be reported to said
Code authorities by any such marketing agencies in such manner
as may be required by such authorities.
SEC. 4. The fair market prices of bituminous coal, established
as aforesaid by such agencies and Code authorities shall be published
on the effective date of this Code, after approval by the Presidential
member of the Code authority (acting under the direction of the
Administrator), who in his approval may permit a reduction or
increase in said prices by action of said agencies or authorities
within the limits which he may prescribe, and thereafter shall
be published whenever any change is made therein, and not less
frequently than once each month, and on the first of the month.
Simultaneously with such publication, said fair market prices
of bituminous coal shall be transmitted by the Code authorities
to the National Recovery Administrator for his further review
and subsequent action.
SEC. 5. Both the records and the data of such marketing agencies, and of said Code authorities shall be open to inspection and
investigation by any agent of the Administrator whom he shall
appoint for that purpose. Should such an agent of the Administrator disapprove of any changes proposed in any fair market
BITUMINOUS COAL INDUSTRY
203
prices from those previously approved by the Administrator as
being in excess of any reductions or increases allowed in such
approval, such changes shall not be made effective unless and
until the Administrator shall approve of them.
SEC 6. The consignment of unordered coal, or the forwarding of
coal which has not actually been sold, consigned to the producer or
his agent, is a violation of this Code ; provided, however, that coal
which has not actually been sold may be forwarded, consigned to the
producer or his agent at rail or truck yards, tidewater ports, river
ports or lake ports and/or at docks beyond such ports, but such
consignments shall be limited to cover :
(a) Bunker coal.
(b) Coal applicable against existing contracts.
(c) Coal for storage (other than in railroad cars) by the producer
or his agent in rail or truck yards or on docks, wharves or other
yards for resale by the producer or his agent.
SEC. 7. The adjustment of claims with purchasers of coal in such
manner as to grant secret allowances, secret rebates or secret
concessions creates price discrimination and is a violation of this
Code.
SEC. 8. The prepayment of freight charges with intent or with
the effect of granting a discriminatory credit allowance is a violation
of this Code.
SEC. 9. The giving in any form of adjustments, allowances, discounts. credits, or refunds to purchasers or sellers of coal, for the purpose or with the effect of altering retroactively a price previously
agreed upon in such manner as to create price discrimination is a
violation of this Code.
SEC. 10. The pre-dating or the post-dating of any invoice or
contract for the purchase or sale of coal, except to conform to a bona
fide agreement for the purchase or sale entered into on the pre-date
is a violation of this Code.
SEC. 11. Terms of sale shall be strictly adhered to; and the
payment or allowance of rebates, refunds, credits, or unearned
discounts, whether in the form of money or otherwise, or extending
to certain purchasers services or privileges not extended to all
purchasers under like terms and conditions, is a violation of this
Code.
SEC. 12. An attempt to purchase business, or obtain information concerning a competitor's business by gifts or bribes, is a
violation of this Code.
SEC. 13. The intentional misrepresentation of analysis and/or
sizes or the intentional making, causing or permitting to be made, or
publishing, of any false, untrue, misleading or deceptive statement,
by way of advertising, invoice, or otherwise, concerning the size,
quality, character, nature, preparation or origin of any coal,
bought or sold, is a violation of this Code.
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TEXTS OF CODES
SEC. 14. The unauthorised use, either in written or oral form, of
trade-marks, trade names, slogans or advertising matter already
adopted by a competitor, or deceptive approximation thereof, is a
violation of this Code.
SEC. 15. Inducing or attempting to induce, by any means or
device whatsoever, a breach of contract between a competitor and
his customer during the term of such contract, is a violation of this
Code.
SEC. 16. Nothing in the foregoing sections of this Article shall
prevent any American producer from creating special prices for
overseas exports.
S E C 17. The splitting or dividing of commissions, brokers'fees,
or brokerage discounts, or otherwise in any manner through sham
or indirection the use of brokerage commission or jobbers' arrangements or sales agency for making discounts, allowances, or rebates,
or prices other than those determined as provided in this Code,
to any industrial consumer or to any retailer, or to others, shall be
a violation of this Code.
SEC. 18. To sell to, or through, any broker, jobber, commission
account, or sales agency, which is in fact an agent for an organization of retailers or industrial consumers, whereby they secure
indirectly a discount, dividend, allowance, or rebates, or a price other
than that determined as provided in this Code shall be a violation
of this Code.
ARTICLE VII—ADMINISTRATION
SECTION 1. For the purposes of administration of this Code the
bituminous coal industry is hereby divided into five divisions as
follows :
Division No. I—Pennsylvania, Ohio, lower peninsula of Michigan,
Maryland. West Virginia, Kentucky, Northern Tennessee (including
all counties not included within Division No. I l l ) , Virginia and
North Carolina.
Division No. II—Iowa, Indiana and Illinois.
Division No. Ill—Alabama, Southern Tennessee (including
Marion, Grundy, Sequatchie, White, Hamilton, Bledsoe and Rhea
Counties) and Georgia.
Division No. IV—Missouri, Kansas, Arkansas, Oklahoma and
Texas.
Division No. V—New Mexico, Colorado, Utah, Wyoming, North
Dakota, South Dakota, Montana, Idaho, Washington, Oregon,
California, Nevada and Arizona.
In each of the foregoing five divisions, subdivisions may be •
established, as hereinafter provided.
S E C 2. Divisional Code Authorities.—For each of the foregoing
divisions there shall bè established within ten days after the
effective date hereof, or within such further time as may be permitted by the Administrator, a divisional Code authority, or
BITUMINOUS COAL INDUSTRY
205
subdivisional Code authorities for the administration of this Code
within such division, either for the division as a unit, or for subdivision thereof, respectively, as may be determined. All the members
of a Code authority, except one (without vote and to be appointed
by the President) shall be selected by an association or associations,
or a committee of coal producers within the division or subdivision which shall be truly representative of the industry therein
and impose no inequitable restrictions on admission to membership.
A full report of any such action taken to establish a Code authority
shall be made to the Administrator and shall become effective upon
approval by him. A subdivision shall consist of a geographical area
within which all coal producers shall be entitled to membership
in the association or committee establishing the Code authority.
The Administrator shall have power to limit the number of subdivisions within a division and to determine any controversy
arising in the establishment of such a Code authority, and his
decision shall be conclusive as to compliance with the requirements
of this section and of the National Industrial Recovery Act in the
initial establishment of such a Code authority.
In the event that subdivisional Code authorities are established
within a division, such subdivisional Code authorities shall establish
a divisional Code authority to exercise the functions hereinafter
provided for a divisional Code authority and any other functions
which may be conferred upon the divisional Code authority by
the subdivisional Code authorities, all in conformity with any rules
and regulations prescribed by the Administrator. One member of a
divisional Code authority, without vote, shall be appointed by the
President.
A Code authority shall administer this Code in its division or
subdivision and shall have the duties and exercise the powers which
are conferred upon it in this Article and in Article VI of this Code,
and shall have authority to adopt appropriate by-laws, rules and
regulations for the exercise of its functions.
Marketing agencies or trade associations may be established or
maintained within any division or subdivision by a voluntary
association of producers within any producing district therein,
as such district may be defined by the Code authority, and function
under such general rules and regulations as may be prescribed by
the Code authority with the approval of the Administrator, for the
purpose of preventing any unfair practices, as defined in Article VI
of this Code.
SEC. 3. Each Code authority shall collect and compile any
reports and other information required under the National Industrial Recovery Act ; and in investigations of any complaint of unfair
practices the Presidential member of a Code authority shall have
power to require reports from, and shall be given access to inspect
the books and records of producers within the jurisdiction of such
Code authority to the extent he may deem necessary for the
determination of the validity of the complaint.
206
TEXTS OF CODES
The expense of administering this Code by a divisional (or
subdivisional) Code authority shall be borne by those subject to such
Code authority, each paying his proportionate share, as assessed,
computed on a tonnage basis, in accordance with regulations
prescribed by the Code authority with the approval of the
Administrator.
SEC. 4. Industrial Board.—There shall be established within ten
days after the creation of the divisional Code authorities a National
Bituminous Coal Industrial Board, consisting of four members
designated by the divisional Code authority of division No. I, two
members designated by the divisional Code authority of division
No. II, one member each designated by the divisional Code authorities of divisions Nos. Ill, IV and V and the five members of the divisional Code authorities who have been appointed by the President.
This board shall have the duties and exercise the powers conferred
upon it in this Code, or any revisions thereof, and particularly shall
meet from time to time at the call of the Administrator, who shall be
ex officio chairman thereof, to consider and to make recommendations to the divisional Code authorities and to the President as to any
amendments of this Code, or other measures which may stabilize
and improve the conditions of the industry and promote the public
interest therein.
SEC. 5. Labor Relations.—(a) Any controversy concerning
hours, wages and conditions of employment, or compliance with the
provisions of Article V of this Code, between employers and employes who are organized or associated for collective action shall,
if possible, be adjusted by conference and negotiation between
duly designated representatives of employers and such employees,
meeting either in a mine conference or district conference or divisional conference, as the machinery for such conference may be
established by agreement of the parties thereto; and it shall be the
duty of employers and employees to exert every reasonable effort to
establish such a machinery of adjustment and to utilize it to
negotiate to a conclusion such controversies wherever possible.
(b) Any such controversy which cannot be settled in the manner
so provided and which threatens to interrupt or has interrupted,
or is impairing, the efficient operation of any mine or mines to such
an extent as to restrain interstate commerce in the products thereof,
shall be referred to the appropriate bituminous coal labor board,
established as hereinafter provided, and the decision of said board
shall be accepted by the parties to the controversy as effective for a
provisional period of not longer than six months, to be fixed by the
board.
(c) During the consideration of any such controversy either
by the agreed machinery of adjustment or by the bituminous coal
labor board, neither party to the controversy shall change the
conditions out of which the controversy arose or utilize any coercive
or retaliatory measures to compel the other party to accede to
its demands.
BITUMINOUS COAL INDUSTRY
207
(d) If any such controversy shall involve or depend upon the
determination of whom are the representatives of the employees
chosen as provided in Section 7 (a) of the National Industrial
Recovery Act, the appropriate bituminous coal labor board,
through any agent or agency it may select, shall have the power
to determine the questions by an investigation and, if necessary,
by a secret ballot taken under its direction.
(e) A bituminous coal labor board shall be appointed by the
President for each division, except there shall be two boards for
Division No. I, to exercise the powers herein conferred upon it,
which shall consist of three members, one to be selected from
nominations submitted by organizations of employees within
such division, one to be selected from nominations by the divisional
Code authority and one who shall be a wholly impartial and disinterested representative of the President. The expenses of such
board shall be met by equal contributions from the employers
and employees nominating members, the amount and method of
collecting which shall be determined by regulations prescribed
by the President.
(/) There shall be a national bituminous coal labor board
composed of the members of the six divisional labor boards which
may be convened upon call of the Administrator in the event that :
1. A controversy involves employers and employees of more
than one division, or
2. The decision of a divisional labor board affects operating
conditions of more than one division either directly or because of
its effect upon competitive marketing, or
3. In the opinion of the Administrator the decision of a divisional labor board involves the application of a policy affecting the
general public, or the welfare of the industry as a whole.
The national bituminous coal labor board may exercise all the
powers conferred upon a divisional labor board, either in giving
original consideration to a controversy, or in reviewing the decision of a divisional labor board, which may be either affirmed, set
aside and/or modified.
ARTICLE
VIII—SAFETY
Employers and employees shall co-operate in maintaining safe
conditions of operation in compliance with the applicable requirements of State laws or regulations in conformity therewith.
ARTICLE IX—AMENDMENTS
Any Code authority may propose amendments to this Code
from time to time effective generally or as to the area within its
jurisdiction which, after submission to any other Code authority
affected thereby (which shall include the divisional Code authority
in case of an amendment proposed by a subdivisional Code authority), may be recommended by the Administrator for the approval
of the President.
208
TEXTS OF CODES
ARTICLE
X
This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provision of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order,
approval, license, rule or regulation issued under Title I of said Act
and specifically, but without limitations, to the right of the President to cancel or modify his approval of this Code or any conditions imposed by him upon his approval thereof.
ARTICLE
XI—EFFECTIVE
DATE
AND TERMINATION
This Code shall become effective on the second Monday following
its approval by the President, and shall continue in effect until
April 1, 1934, and thereafter in the absence of the exercise of the
power reserved to the President in Article X, subject to the exercise
of the option, after thirty days' notice to the Administrator, by
any coal producer to withdraw his consent after April 1, 1934,
to the further enforcement of the Code as a Code to which he has
voluntarily given his consent.
SCHEDULE A
[Schedule A follows in the Code. It gives minimum wages
for inside skilled labor and minimum wages for outside common
labor b y districts in Pennsylvania, Ohio, Michigan, West Virginia,
Kentucky, Maryland, Virginia, Tennessee, Indiana, Illinois,
Iowa, Missouri, Kansas, Arkansas, Oklahoma, Texas, Alabama,
Georgia, New Mexico, Colorado, Utah, Wyoming, Montana,
Washington, North Dakota and South Dakota.] 1
SCHEDULE B
STATEMENT CONCERNING SECTION 7 (a) OF NATIONAL INDUSTRIAL
RECOVERY A C T
The plain meaning of Section 7 (a) cannot be changed by any
interpretation by any one. It is the function of the Administrator
and the courts to apply and to interpret the law in its adminis1
The content of this Schedule and the exact position with regard to it are
not indicated in the newspaper report, but it would appear that it was incomplete and that the minimum rates of pay for certain districts at least were,
in fact, negotiated separately and at a later date than the other provisions of
the Code. The complete text of Schedule A, as finally approved on 29 September 1933, is given on pages 221-222 below.
BITUMINOUS
COAL
INDUSTRY
209
tration; and no one else can assume this function and no official
interpretation can be circumscribed, affected or foreclosed by any
one writing his own interpretation into any Code or agreement.
Such an interpretation has no place there and cannot be permitted.
The words " open shop " and " closed shop " are not used in
the law and cannot be written into the law.
These words have no agreed meaning and will be erased from the
dictionary of the NRA.
The law requires in Codes and agreements that " employees
shall have the right to organize and bargain collectively through
representatives of their own choosing."
This can mean only one thing, which is that employees can choose
any one they desire to represent them, or they can choose to represent themselves. Employers, likewise, can make collective bargains with organized employees, or individual agreements with
those who choose to act individually; provided, of course, that
no such collective or individual agreement is in violation of any
State or Federal law. But neither employers nor employees
are required, by law, to agree to any particular contract, whether
proposed as an individual or collective agreement.
The law provides that employees shall be free from the interference, restraint or coercion of employers in the exercise of their
rights established by the law. The conduct of employers which is
here prohibited has been defined by the Supreme Court in the case
entitled T. & N. 0. R. R. v. Brotherhood of Railway Clerks, 281
U.S., 548. The rulings of the Supreme Court lay down the law
which governs the NRA.
Under Section 7 (a), employers are forbidden to require " as a
condition of employment " that an employee shall either " join
a company union," or " refrain from joining, organizing, or assisting
a labor organization of his own choosing." The law does not
prohibit the existence of a local labor organization, which may be
called a company union and is composed only of the employees
of one company. But it does prohibit an employer from requiring,
as a condition of employment, that any employee join a company
union and it prohibits the maintenance of a company union, or
any other labor organization, by the interference, restraint or
coercion of an employer.
If there is any dispute in a particular case over who are the
representatives of the employees of their own choosing, the NRA
will offer its services to conduct an impartial investigation and, if
necessary, a secret ballot to settle the question.
The NRA will not undertake in any instance to decide that a
particular contract should be made, or should not be made between
lawful representatives of employees and employers; or to decide
that a contract which has been lawfully made should not be
enforced.
Cooperation in all industrial relations depends largely on the
making and maintenance of agreements. The NRA will promote
and aid such cooperation.
14
210
TEXTS OF CODES
AGREEMENT COVERING THE APPALACHIAN FIELD
In approving this agreement the President attached to it a
memorandum saying:
" In approving this agreement it is with the understanding
t h a t the hours and wages and conditions of employment recited
herein may also be applied to the employees who are not parties
hereto and that the requirements of Section 7 (a) of the NRA will
be complied with in carrying out this agreement." 1
Appalachian Agreement
2
This agreement is made and entered into pursuant to the provisions of Section 7 (¿>) of the National Industrial Recovery Act,
and shall become effective upon approval by the President of the
United States as provided therein.
This agreement, made the 21st day of September, 1933, between
t h e Northern Coal Control Association, a voluntary association
on behalf of each member thereof, and the Smokeless and Appalachian Coal Association, a voluntary association on behalf of each
member thereof, hereinafter referred to as the operators, parties of
the first part ; and the International Union United Mine Workers of
America and Districts 2, 3, 4, 5, 6, 17, 19, 30 and 31, hereinafter
referred to as mine workers, and on behalf of each member thereof,
party of the second part. (New districts of the United Mine Workers
of America may be established in this territory.)
Witnesseth: It is agreed t h a t this contract is for the exclusive
joint use and benefit of the contracting parties, as heretofore defined
and set forth in this agreement ; and it shall be construed as binding
upon and effective in determining only the relations with each other
of those represented by the parties signatory hereto.
1
New York Times, 23 September 1933. Commenting on the position thus
created, the New York Times observed: "Now that the basic wage agreement has been signed for all operators in the Appalachian field except those of
Western Kentucky and Alabama, events of the next few days will indicate
whether these fields will be included, by signature, in the agreement. But
whether the Western Kentucky operators and their fellows in Alabama sign
the agreement or not, they will be covered by the Coal Code, and will also be
expected to comply with the wages fixed in the wage schedules." The text
of Schedule A, containing minimum rates for the 17 districts in the industry,
was finally approved on 29 September 1933, and is given on pages 221-222
below. On the same day the President approved the text of a special Agreement under S. 4 (a) of the National Industrial Recovery Act providing for the
observance in the so-called " captive mines " (bituminous coal mines operated
by employers members of the Iron and Steel Code for the production of coal
for use by them or by their subsidiary or affiliated companies in operations in
or related to the Iron and Steel industry) of conditions hours and wages " as
favourable to the employees as those prevailing in the district in which such
mines are located."
2
Rearranged from New York Times, 22 September 1933.
BITUMINOUS COAL INDUSTRY
211
It is the intent and purpose of the parties hereto that this agreement will promote an improved industrial and economic relationship
in the bituminous coal industry, and to set forth herein the basic
agreements covering rates of pay, hours of work, and conditions of
employment to be observed between the parties in the following
districts constituting the Appalachian territory:
Northern Coal Control Association Territory—Pennsylvania,
Ohio, together with Ohio, Brook and Marshall Counties of West
Virginia, and Northern West Virginia, including counties of Monongahela, Marion, Harrison, Preston, Taylor, Barbour, Randolph,
Upshur, Lewis, Gilmer, Braxton, Webster and that portion of
Nicholas County containing coal or coal mines along the line of the
B. and 0. Railroad.
Smokeless and Appalachian Territory—The State of Virginia,
Northern Tennessee, that part of Kentucky lying east of a line
drawn north and south through the city of Louisville, and that part
of West Virginia not included in Northern Coal Control Association
Territory, as set out above, and except Grant, Mineral and Tucker
Counties of West Virginia.
MAXIMUM HOURS AND WORKING TIME
Eight hours of labor shall constitute a day's work.
The eight-hour day means eight hours' work in the mines at the
usual working places for all classes of labor, exclusive of the lunch
period, whether they be paid by the day or be paid on the tonnage
basis; except in cases of accident which temporarily necessitates
longer hours for those mine workers required on account thereof;
and also excepting that number of mine workers in each mine whose
daily work includes the handling of man-trips and those who are required to remain on duty while men are entering or leaving the mine.
The eight-hour day, five-day week (forty hours per week), as
provided in this agreement, shall prevail.
The following classes of mine workers are excepted from the
foregoing provisions as to maximum hours of work :
All mine workers engaged in the transportation of men and coal
shall work the additional time necessary to handle man-trips and all
coal in transit, and shall be paid the regular hourly rate.
When day men go into the mine in the morning they shall be
entitled to two hours' pay whether or not the mine works the full two
hours, but after the first two hours the men shall be paid for every
hour thereafter by the hour for each hour's work or fractional part
thereof. If for any reason the regular routine work cannot be
furnished inside day men, the employer may furnish other than
the regular work.
Drivers shall take their mules to and from stables and the time
required in so doing shall not include any part of the day's labor,
their work beginning when they reach the change at which they
receive empty cars, but in no case shall the driver's time be docked
while he is waiting for such cars at the point named. The method
212
TEXTS OF CODES
at present existing covering the harnessing and unharnessing of
mules shall be continued throughout the life of this agreement.
Motormen and trip riders shall be at the passway where they
receive the cars at starting time. The time required to take motors
to the passway at starting time and departing from the same at
quitting time shall not be regarded as a part of the day's labor,
their time beginning when they reach the change or parting at which
they receive cars, but in no case shall their time be docked while
waiting for cars at the point named.
Holidays to be recognized are referred to the various district
conferences for settlement.
BASIC
TONNAGE
RATE
Pick mining is the removal by the miner of coal that has not been
undercut or overcut by a machine. The basic rate for pick mining
and handloading of coal shall include the work required to drill,
shoot and clean and load the coal properly, timber the working
place, and all other work and customs incidental thereto.
In the districts represented by Northern Coal Control Association
a shortwall machine differential of ten cents (10 cents) per net ton
between pick and machine mining rates shall be maintained.
Any change in mining methods or installation of equipment that
relieves the mine worker of any of the above duties and increases his
productive capacity shall be recognized and a piece-work rate agreed
to therefor properly related to the basic rate.
The standard for basic tonnage rates shall be 2,000 pounds
per ton; where the gross ton of 2,240 pounds is the measure the
equivalent rate shall be paid.
The basic tonnage, hourly and day wage rates for the various
producing districts represented in this conference are shown in the
attached Schedules A, B and C, which are parts hereof.
Yardage and deadwork rates in all districts shall be increased
twenty (20) per cent.
CHECKWEIGHMEN
The mine workers shall have the right to a checkweighman,
of their own choosing, to inspect the weighing of coal; provided
that where mines are not now equipped to weigh coal a reasonable
time may be allowed to so equip such mines; and provided that in
any case where on account of physical conditions and mutual agreement wages are based on measure or other method than on actual
weights, the mine workers shall have the right to check the accuracy
and fairness of such method, by a representative of their own
choosing.
Cars shall be tared at reasonable intervals and without inconvenience to the operation of the mine. Care shall be taken of the cars
in their usual running condition.
At mines not employing a sufficient number of men to maintain a
checkweighman, the weight credited to the mine workers shall be
checked against the billing weights furnished by railroads to the
BITUMINOUS COAL INDUSTRY
213
operators, and on coal trucked from such mines a practical method
to check the weights shall be agreed upon. Such weights shall be
checked once a month.
The wages of checkweighmen will be collected through the pay
office semi-monthly, upon a statement of time made by the cheek weighman and approved by the mine committee. The amount
so collected shall be deducted on a percentage basis, agreed upon
by the checkweighman and clerk, from the earnings of the mine
workers engaged in mining coal and shall be sufficient only to pay
the wages and legitimate expenses incident to the office, except
where the method of payment is otherwise provided by State law.
If a suitable person to act as checkweighman is not available
among the mine workers at the time, a man not employed at the
mine may be selected upon mutual agreement.
The checkweighman, or checkmeasurer, as the case may require,
shall be permitted at all times to be present at the weighing or
measuring of coal, also have power to checkweigh or checkmeasure
the same, and during the regular working hours to have the privilege
to balance and examine the scales or measure the cars, providing
that all such balancing and examination of scales shall only be done
in such a way and at such time as in no way to interfere with the
regular working of the mine.
It shall be the further duty of checkweighman or checkmeasurer
-to credit each mine worker with all mercantile coal mined by him on
a proper sheet or book kept by him for that purpose. Checkweighmen or checkmeasurer shall in no way interfere with the operation
of the mine.
BOYS
No person under seventeen (17) years of age shall be employed
inside any mine nor in hazardous occupations outside any mine;
provided, however, that where a State law provides a higher
minimum age, the State law shall govern.
EXEMPTION UNDER THIS CONTRACT
The term mine worker as used in agreement shall not include mine
foremen, assistant mine foremen, fire bosses, or bosses in charge of
any classes of labor inside or outside of the mine, or coal inspectors
or weighbosses, watchmen, clerks, or members of the executive,
supervisory and technical forces of the operators.
MANAGEMENT
OF
MINES
The management of the mine, the direction of the working force,
and the right to hire and discharge are vested exclusively in the
operator, and the United Mine Workers of America shall not
abridge these rights.
It is not the intention of this provision to encourage the discharge
of mine workers, or the refusal of employment to applicants because
of personal prejudice or activity in matters affecting the Unite 1
Mine Workers of America.
214
TEXTS OF CODES
MINE
COMMITTEE
A committee of three (3) mine workers shall be elected at each
mine. The duties of the mine committee shall be confined to the
adjustment of disputes that the mine management and mine
workers, or mine workers, have failed to adjust. The mine committee shall have no other authority or exercise any other control,
nor in any way interfere with the operation of the mine. For
violation of this clause the committee or any member thereof may be
removed from the committee.
SETTLEMENT
OF
DISPUTES
Should differences arise between the mine workers and the
operator as to the meaning and application of the provisions of this
agreement, or should differences arise about matters not specifically
mentioned in this agreement, or should any local trouble of any
kind arise at any mine, there shall be no suspension of work on
account of such differences, but an earnest effort shall be made to
settle such differences immediately :
First—Between the aggrieved party and the mine management;
Second—Through the management of the mine and the mine
committee ;
Third—By a board consisting of four members, two of whom shall
be designated by the mine workers and two by the operators.
Should the board fail to agree, the matter shall be referred to an
umpire to be selected by said board. Should the board be unable to
agree on the selection of an umpire, he shall be designated by the
Administrator of the National Industrial Recovery Act. The
decision of the umpire, in any event, shall be final.
The district conference may establish an intermediate board
consisting of two (2) commissioners, one representing the operators
and one representing the mine workers, with such powers as said
conference may delegate.
Pending the hearing of disputes, the mine workers shall not cease
work because of any dispute; and a decision reached at any stage
of the proceedings shall be binding on both parties thereto and shall
not be subject to reopening by any other party or branch of either
association except by mutual agreement.
Expense and salary incident to the services of an umpire shall be
paid jointly by the operators and mine workers in each district.
DISCHARGE
CASES
When a mine worker has been discharged from his employment
and he believes he has been unjustly dealt with, it shall be a case
arising under the method of settling disputes herein provided.
In all discharge cases, should it be decided under the rules of this
agreement that an injustice has been dealt the mine worker, the
operator shall reinstate and compensate him at the rate based on the
earning of said mine worker prior to such discharge. Provided,
however, that such case shall be taken up and disposed of within
five days from the date of discharge.
BITUMINOUS COAL INDUSTRY
ILLEGAL
215
SUSPENSION OF WORK
A strike or stoppage of work on the part of the mine workers shall
be a violation of this agreement. Under no circumstances shall the
operators discuss the matter under dispute with the mine committee
or any representative of the United Mine Workers of America during
suspension of work in violation of this agreement.
IRREGULAR WORK
When any mine worker absents himself from his work for a period
of two days without the consent of the operator, other than because
of proven sickness, he may be discharged.
PREPARATION OF COAL AND MINING PRACTICE
Each district agreement shall provide for the preparation and
proper cleaning of coal. Proper disciplinary rules and penalties
shall also be incorporated in such agreements.
SAFETY
PRACTICE
Reasonable rules and regulations of the operator for the protection of the persons of the mine workers and the preservation of
property shall be complied with.
ENGINEERS' AND PUMPERS' DUTIES
When required by the management, engineers, pumpers, firemen,
power plant and substation attendants shall under no conditions
suspend work, but shall at all times protect all the company's
property under their care, and operate fans and pumps and lower
and hoist men or supplies as may be required to protect the
company's coal plant.
SHIFTS
The operator shall have the right during the entire period of
this agreement to work all the mines, or any one or more of them,
extra shifts with different crews.
When the mine works only one shift it shall be in the daytime,
but this shall not prevent cutting and loading coal at night in
addition to the day shift cutting and loading.
PAY
DAY
Pay shall be made semi-monthly and at least twice each month.
COKE AND CLEANING PLANTS
Proper rules may be negotiated in district conferences to provide
for continuous operation of coking and cleaning plants.
MISCELLANEOUS PROVISIONS
Matters affecting cost of explosives, blacksmithing, electric
cap lamps and house coal are referred to the district conferences.
216
TEXTS OF CODES
To the extent that it has been the custom in each district, all
bottom coal shall be taken up and loaded by the mine worker.
The cutter shall cut the coal as directed by the operator.
DISTRICT CONFERENCES
District agreements shall be made dealing with local or district
conditions, and it is agreed that such district agreements shall
embody the basic rates of pay, hours of work and conditions of
employment herein set forth, and all specific rights and obligations
of operators and mine workers herein recognized.
This agreement shall supercede all existing and previous contracts,
and all local rules, regulations and customs heretofore established
in conflict with this agreement are hereby abolished. Prior practice and custom not in conflict with this agreement maybe continued.
All internal differences are hereby referred to the various districts
for settlement, with the understanding that only by mutual consent
shall anything be done in district conferences that will increase the
cost of production or decrease the earning capacity of the men:
Provided, however, all yardage and deadwork rates not specified
in this contract shall be properly adjusted.
JOINT WAGE CONFERENCE
A joint conference of representatives of Northern Coal Control
Association and Smokeless and Appalachian Coal Association
and of the International Union, United Mine Workers of America,
shall be held in accordance with the following provisions of the Code
of Fair Competition for the bituminous coal industry:
" On January 5, 1934, there shall be held a conference between
representatives of employers and employees operating under this
Code, together with representatives of the National Recovery
Administration, for the purpose of determining what, if any,
revisions may be desirable at that time of wages, hours and differentials, or any other requirements of this Code, on the basis of
conditions then existing and the report of representatives of the
National Recovery Administration made as hereinbefore provided.
" Unless revised by mutual agreement, as the result of said
conference beginning January 5,1934, the hours of work, minimum
rates of pay and wage differentials as set forth in this code shall
continue in effect until April 1, 1934."
This agreement shall become effective after approval by the
President and on the same day that the bituminous coal Code
applicable to the territory embraced herein shall become effective,
following its approval by the President; and it shall continue in
effect until the first day of April, 1934.
In witness whereof each of the parties hereto, pursuant to proper
authority, has caused this agreement to be signed by its proper
officers.
BITUMINOUS COAL INDUSTRY
U n i t e d Mine W o r k e r s of A m e r i c a :
217
B y J O H N L . L E W I S , presi-
d e n t ; P H I L I P M U R R A Y , vice p r e s i d e n t ; T H O M A S K E N N E D Y , s e c r e t a r y .
Northern
Coal Control A s s o c i a t i o n : B y J . D . A.
MORROW,
president; W A L T E R J O N E S , secretary.
Smokeless a n d A p p a l a c h i a n Coal Association: B y E . J . M A H A N ,
president; H. E . H A W T H O R N E , secretary.
T h e j o i n t scale c o m m i t t e e for t h e mine w o r k e r s a n d o p e r a t o r s
also signed.
SCHEDULE A
T h e basic r a t e s established in t h e following n a m e d d i s t r i c t s :
Tonnage rates
per 2,000 lbs
WESTERN PENNSYLVANIA
run Of mine coal
Pick mining, thin vein
Thick vein
Machine loading, thin vein
Thick vein
Cutting, short wall machine, thin vein
Thick vein
SO.70
.65
.52
.48
.08
.07
CENTRAL PENNSYLVANIA
Pick mining
Machine loading
Cutting, short wall machine
.70
.52
.08
CONNELLSVILLE, PA.
Pick mining
Machine loading
Cutting, short wall machine
.56
.40
.06
WESTMORELAND-GREENSBURG, PA.
Pick mining
Machine loading
Cutting, short wall machine
.65
.48
.07
THICK VEIN, FREEPORT, PA.
Pick mining
Machine loading
Cutting, short wall machine
.65
.48
.07
OHIO AND THE PANHANDLE DISTRICT OF NORTHERN WEST VIRGINIA
Pick mining
Machine loading
Cutting, short wall machine
.70
.52
.08
T h e following h o u r l y a n d d a y wage r a t e s shall b e p a i d in all
mines in P e n n s y l v a n i a , Ohio a n d t h e P a n h a n d l e d i s t r i c t of N o r t h e r n
W e s t Virginia for t h e classification of o c c u p a t i o n s s h o w n h e r e i n :
CLASSIFICATION
OF
OCCUPATIONS
INSIDE
Motprmen, rock driller
Drivers, brakemen, spraggers, snappers, coal drillers, trackmen, wiremen, bonders, timbermen, bottom cagers . . .
Pumpers, trackmen helpers, wiremen helpers, timbermen
helpers, and other inside labor not classified
Greasers, trappers, flaggers, switch throwers
Hourly
Rate
Day
Rate
SO.595
$4.76
.575
4.60
.545
.375
4.36 •
3.00
218
TEXTS OF CODES
OUTSIDE
Bit sharpener, car dropper, trimmer, car repairmen, dumpers
Sand dryers, car cleaners, other able-bodied labor . . . .
Slate pickers
Hourly
Day
Rate
Rate
$.48
$3.84
.45
3.60
375
3.00
Skilled labor not classified to be paid in accordance with the custom at
the mine.
SCHEDULE B
Basic rates established in the Northern West Virginia district:
Tonnage rates
per 2,000 lbs.
run of mine coal
$0.56
.40
.06
Pick mining
Machine loading
Cutting, short wall machine
The following hourly and day wage rates shall be paid in all
mines in the Northern West Virginia district for the classification
of occupations shown herein:
CLASSIFICATION OF OCCUPATIONS
INSIDE
Motormen, rock driller
Drivers, brakemen, spraggers, snappers, coal drillers, trackmen, wire men, bonders, timber men, bottom cagers . . .
Pumpers, trackmen helpers, wire men helpers, timber men
helpers and other inside labor not classified
Greasers, trappers ; flaggers, switch throwers
Hourly
Rate
$0,565
Day
Rate
$4.52
.545
4.36
.515
.345
4.12
2.76
OUTSIDE
Bit sharpener, car dropper, car trimmer, car repairmen,
dumpers
Sand dryers, car cleaners, other able-bodied labor . . . .
Slate pickers
.45
.42
.345
3.60
3.36
2.76
Skilled labor not classified to be paid in accordance with the custom at the
mine.
SCHEDULE C
Basic rates established in the following named districts :
NEW RIVER
Machines loading
Cutting, short wall machine
Tonnage rates
per 2,000 lbs.
run of mine coal
$.442
.075
WINDING GULF
Machine loading
Cutting, short wall machine
.384
.07
GREEN RIVER
Machine loading
Cutting, short wall machine
.392
.055
219
BITUMINOUS COAL INDUSTRY
POCAHONTAS
Machine loading
Cutting, short wall machine
TUG
Tonnage rates
par 2,000 lbs.
run of mine coal
.375
.045
RIVER
Machine loading
Cutting, short wall machine
.357
. 045
KANAWHA
Machine loading
Cutting, short wall machine
.42 2
.07
LOGAN
Machine loading
Cutting, short wall machine
.332
.052
WILLIAMSON
Machine loading
Cutting, short wall machine
BIG
.358
.056
SANDY-EKLHORN
Machine loading
Cutting, short wall machine
.465
.08
HAZARD
Machine loading
Cutting, short wall machine
.402
.08
HARLAN
Machine loading
Cutting, short wall machine
.41
.07
SOUTHERN
APPALACHIAN
Machine loading
Cutting, short wall machine
.43
.08
VIRGINIA
Machine loading
Cutting, short wall machine
.408
.067
T h e following h o u r l y a n d d a y wage r a t e s shall b e p a i d in all
m i n e s in t h e N e w River, W i n d i n g Gulf, Green R i v e r , P o c a h o n t a s ,
T u g River, K a n a w h a , L o g a n , W i l l i a m s o n , Big S a n d y - E l k h o r n ,
H a z a r d , H a r l a n , S o u t h e r n A p p a l a c h i a n a n d Virginia districts for
t h e classification of o c c u p a t i o n s s h o w n h e r e i n :
CLASSIFICATION OF OCCUPATIONS
INSIDE
Motormen, rock driller
Drivers, brakemen, spraggers, snappers, coal drillers, trackmen, wiremen, bonders, timbermen, bottom cagers . . .
Pumpers, trackmen helpers, wiremen helpers, timbermen
helpers, and other inside labor not. classified
Greasers, trappers, flaggers, switch throwers
Hourly
Rate
$0,545
Day
Rate
$4.36
.525
4.20
.495
.325
3.96
2.60
.43
.40
325
3.44
3.20
2.60
OUTSIDE
Bit sharpener, car dropper, trimmer, car repairmen, dumpers
Sand dryers, car cleaners, other able-bodied labor . . . .
Slate pickers
Skilled labor not classified to be paid in accordance with the custom at
the mine.
220
TEXTS OF CODES
Revised Code of Fair Competition for the Bituminous Coal Industry
EXECUTIVE ORDER
September 29, 1933.
A Code of Fair Competition for the Bituminous Coal Industry was
approved by an Executive Order dated September 18, 1933, subject
to certain conditions including a condition that basic minimum
rates not fixed in Schedule A, as attached to the Code, might be
approved or prescribed by the President at any time prior to the
effective date of the Code, which provision was also incorporated
in the Code in said Schedule A. Following said Executive Order of
September 18th further consideration has been given to said basic
minimum rates and said Schedule A has been revised so as to
include additional rates, either agreed upon and submitted for
approval, or recommended as those which should be prescribed by
the President.
The associations and groups of coal producers and individual
coal producers submitting said Code for the approval of the President, also authorized the Administrator to make such minor changes
as might be desirable to improve its language without substantially
altering the substance thereof.
Now, therefore, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested in me by Title I of the
National Recovery Act, approved June 16, 1933, and otherwise,
and upon the recommendation of the Administrator do order that :
(1) Schedule A, as revised and attached to this Order, is hereby
approved as the schedule of basic minimum rates approved or
prescribed by the President and incorporated in the Code of Fair
Competition for the Bituminous Coal Industry, as provided in
Article IV of said Code.
(2) In order to correct a typographical error in the Code and
in the Executive Order of September 18th, in the two places where
the phrase " six members of the Divisional Code Authorizes "
occurs in Article VII, Section 4, this shall be corrected to read
" five members of the Divisional Code Authorities ".
(3) In order to provide for the impartial decision of any controversy submitted to the National Bituminous Coal Labor Board
there is hereby imposed, as a condition upon the functioning of
said Board, that only the impartial and disinterested representatives
of the President appointed to the Divisional Labor Boards shall
participate in the dicisions of the National Bituminous Coal Labor
Board, the other members thereof acting only in an advisory
capacity.
(4) Subject to the conditions of the Executive Order of September 18, 1933, and the modification thereof and other provisions
of this order, the Code of Fair Competition for the Bituminous Coal
Industry is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended
HUGH S. JOHNSON.
221
BITUMINOUS COAL INDUSTRY
SCHEDULE A
Basic Minimum Rates
Minimum inside
Skilled Labor
Dollars
Cents
per day per hour
District
Minimum
Common
Dollars
per day
outside
Labor
Cents
per hour
District A
Pennsylvania
Ohio
Lower Peninsula of Michigan 1
Panhandle District of West
Virginia
4.60
4.60
4.60
57 y2
57 y,
57%
3.60
3.60
3.60
45
45
45
4.60
57 y2
3.60
45
District B
Northern West Virginia
4.36
54 y2
3.36
4.20
4.20
52 y2
52 y2
3.20
3.20
40
40
4.20
4.20
4.20
4.20
52 y2
52%
52% .
52% .
3.20
3.20
3.20
3.20
40
40
40
40
4.57 y2
57V.
4.20
52%
5.00
62% '
4.00
50
4.70
4.56
58»/.
57
4.00
3.86
50
48 y4
District G
Missouri, Kansas, Arkansas
and Oklanoma
3.75
46 V.
3.28
41
District H
Western Kentucky
4.00
50
3.00
37%
3.40
3.40
3.40
42%
42%
42%
2.40
2.40
2.40
30
30
30
2
District C
Southern West Va. 3
Eastern Kentucky *
Upper Potomac District of
West Va. 5
Maryland
Virginia
Northern Tennessee 6
.
42
District D
Indiana
District E
Illinois
District F
Iowa
Wayne and Appanoose
Counties of Iowa
s
District J
Alabama
Georgia
Hamilton and Rhea
1
Counties of Tennessee!
1
2
I7
|
Includes Hancock, Brooke, Ohio and Marshall Counties.
Includes Monongalia, Preston, Marion, Harrison, Taylor, Lewis, Barbour, Gilmer,
Upshur, Randolph, Braxton and Webster Counties and those mines in Nicholas County
served
by the B. & O. R. R.
3
Includes all mines in counties of West Virginia not named under Districts A and B and
under
the
Upper Potomac District.
4
Includes all mines in Kentucky located east of a north and south line drawn along the
western
boundary of the City of Louisville.
5
Includes Grant, Mineral and Tucker Counties.
6
Includes
all counties in Tennessee not named Districts J and J-l.
7
Excludes Wayne and Appanoose Counties.
8
Includes all mines in Kentucky west of a north and south line drawn along the western
boundary of the City of Louisville.
222
TEXTS OF CODES
SCHEDULE A — continued
Minimum Inside
Skilled Labor
Cents
Dollars
per hour
per day
District
District J-\
Marion, Grundy, Sequatchie, 1
White Van Buren, Warren 1
and Bedsoe Counties of 1
Tennessee
J
Minimum outside
Common Labor
Dollars
Cents
per day
per hour
3.84
48
2.84
35%
4.48
4.44
56
55%
3.75
3.75
46'/B
5.00
62%
3.75
46 ' / .
Utah
5.44
68
4.48
56
District N
Southern Wyoming
Northern Wyoming
5.42
5.42
67%
67%
4.44
4.54
55%
56%
Montana
5.63
70»/,
4.82
60%
District P
Washington
5.40
67%
4.00
50
District Q
North Dakota
South Dakota
4.00
4.00
50
50
3.20
3.20
40
40
District K
New Mexico
Southern Colorado
1
District L
Northern Colorado a
46 V.
District M
District 0
1
2
Includes all counties in Colorado not named under District L.
Includes Jackson, Larimer, Weld, Boulder, Adams, Arapahoe, El Paso, Douglas,
Elbert and Jefferson Counties.
JVote. — Differences between districts in the foregoing minimum rates are not to be
considered as fixing permanent wage differentials or establishing precedents for future wage
scales.
B. LIST OF CODES
APPROVED
LIST OF CODES APPROVED BY
PRESIDENT ROOSEVELT
Up to and Including 20 September 1933 1
Code
Date of
approval
July 9
Cotton Textile
The following industries also are operating
under the Cotton Textile Code, with varying
provisions, by Executive Orders of the dates
shown:
Broad silk and rayon weavers
Converters
Cordage and twine
Cotton thread
Garment manufacturers
Pajama manufacturers
Ribbon
Silk and rayon dyeing and printing . .
Textile
finishing
Special fabrics
Throwing industry
Underwear and allied products . . . .
Wo%en label
Shipbuilding and Shiprepairing
Wool Textile
Electrical Manufacturing
Coat and Suit
Corset and Brassiere
Lace Manufacturing
Theatrical (Legitimate)
Iron and Steel
Lumber and Timber Products
Petroleum
Fishing Tackle
Photographic Manufacturing
Rayon and Synthetic Yarn
Hosiery
1
July 15
„15
„27
,,15
,,26
„26
„15
„22
„21
„15
„15
„21
„15
. .
Compiled from the United States News, Aug. and Sept. 1933.
July
„
Aug.
„
„
,,
,,
„
„
,,
„
,,
„
,,
26
26
4
4
14
14
16
19
19
19
19
21
26
26
224
LIST OF CODES APPROVED
Code
Men's Ready-to-Wear Clothing
Automobile Manufacturing
Motion Picture Laboratory
Wallpaper Manufacturing
Leather
Cast-Iron Soil Pipe
Salt Industry
Bituminous Coal
Transit Industry
Underwear Manufacturing
Textile Bag Industry
Artificial Flowers and Feathers
Linoleum and Felt Base
Gasoline Pumps
Oil Burners
'.
Date of
approval
Aug. 26
,, 26
Sept. 8
,,
8
„
8
„
8
„ 11
„ 18
„ 20
„ 20
„ 20
„ 20
„ 20
,, 20
„ 20