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 24 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 26 TEXTS OF LAWS 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 28 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- 30 TEXTS OF LAWS 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 32 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 34 TEXTS OF LAWS 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 36 TEXTS OF LAWS 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 50 TEXTS OF LAWS 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 TEXTS OF LAWS (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 TEXTS OF LAWS 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 TEXTS OF LAWS 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. 58 TEXTS OF LAWS 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 60 TEXTS OF LAWS 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 92 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. 94 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. 96 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 97 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 , 100 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 102 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 .90 120 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 . . . . . . . ' .60 121 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- 122 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 124 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. 128 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. 9 130 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 132 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. 133 THEATRICAL INDUSTRY 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 134 TEXTS OF CODES 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. THEATRICAL INDUSTRY 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 136 TEXTS OF CODES 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; 140 TEXTS OF CODES (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 142 TEXTS OF 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. 144 TEXTS OF CODES 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 10 146 TEXTS OF CODES 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 INDUSTRY 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 INDUSTRY 183 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 INDUSTRY 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. 204 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