Code of fair competition for the transit industry


Material Information

Code of fair competition for the transit industry as approved on September 18, 1933 by President Roosevelt
Portion of title:
Transit industry
Physical Description:
vi, 6 p. : ; 24 cm.
United States -- National Recovery Administration
U.S. G.P.O.
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Publication Date:


Subjects / Keywords:
Transportation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
At head of title: National Recovery Administration.
General Note:
Registry no. 1741-1-08.
General Note:

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Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939934
oclc - 48023932
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negistry No. 17ul-1-es8







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U.3. DEP~fO~W

Executive Order of President Roosevelt
Report of Administrator
Report of Deputy Administrator
Text of Code


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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 ap~proval of a Code
of Fair Competition for the Transit Industry, andi~ hearings having
been held thereon andl the Administrator havingr rendered his report
containing an analysis of the said Code of Fair Competition to-
gether with his recommendations and findings wsith 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 thle requirements of clauses (1)
and (2) of Subsection (a) of Section 3 of the said Act have been~ melt.
NOW, THEREFORE, I, Fra2nklin D. Roosevelt, President of
the United States, pursuant to the author~ity vested in me byT Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt the findings and approve the report and
recommendations of the Administrator and dlo order that the said
Code of Fair Competit~ion be and it is hereby approved, subject to
the following* conditions:
(1) In approving the Code of Fair Competition for the T'ransit
Industry, it is to be understood that paragrapl -2 of Article VII,
refers to all labor agreements arrived at by collective baraning1
and that as to the language of this paragrap~h, the approval hl
be construed to mean thlat existing labor contracts between members
of the industry and employees may be continued in effect to their
various exp~iration dates, unless moedifiedl by mutual agreement, bult
arle not incorporated as a part of the Code. Where thae prrovisions
of any such expiring contracts include, extensionis or renewa~ls thereof
b~y arbitration or otherwise, such provisions mnay have thre same force
and effect as other provisions of such contracts! but in the process
of extension or renewal of any such contrnets, as pr~ovided by their
terms and conditions, no working~ hours shall be set up which are
in excess of the miaximuml nlow~ed in this Codle, and th~e minimum
wrage provisions shall not be less than those provided in this Code.
(2) The American Transit Association shall as soon as possible
after the effective dlate of this Code amend its Constitution and By-
laws wherever it may be necessary so that in the judgment of the
Administrator there wFill be no inequitable restrictions imposed on
nememership in the Association.
Approval recommended :
A dmin istrator.
September 18. 19~33.
1323i6 *--133-106---33 (nIII

SE~PTEMBER 15, 1933. 1
The Whi~te How~e.
Mr~ D)EAR \R. PR1ESI~DENT: I have the honor to submit and recom- ;
mend fo~r your: approval the Code of Fair Competition for the
Transit Industry.
T~he followting exhlibits are included or attaclhed:
(1) Final Code Sulbmitted.
(2 iN~otice of Hea ring.
()Transcript of the Records.
(5i) Statfistical A1~nalys'is of the D~iv8ision of Economic Research and
(6) Report of Deputy.
An analyvsis of the provisions of the Code has been made by the
Administration. I iEnd that the Code complies wsith the require-
ments of Clauses 1 and 2, Subsection (at) of~ Section 3 of the N~ational
'Industrial Acdt.
I am, my dear MIr. President,
Very~ sincerely yours,
(Signed) HJUanI S. JoHNSON,
A dmzin istr~ator.

S-EPTEMB1En 15, 1933.
To: General Hugh S. Johnson, Admninistrator.
From: 1Halcolmi BIluir, Deputy Administrator.
Subject: Report on Code of Fair Competition for Transit Industry.
This is a report of the hearing on the Code of Fair Competition
for the Transit Industry of the United States, conducted in Wa~sh-
ington on the 29th of August 1933 in accordance with the provisions
of the National Industrial Recovery Act.
Reports by the following are included or attached:
1. Industrial Advisory Board.
2. Consumer's Advisory Board.
3. Labor Advisory Board.
4. Legal Division.
5. Division of Economic Research and Planning.
This Code hias the approval of the Industrial, Consumers, and
Labor Advisory Boards, and of the Legal Division and the Division
of Economic Planning.
Approval of the Code by the Legal D~ivision is based on the con-
dition that Parlagraph of Article 'VII be called specifically to th~e
Administrator~'s attention, and that the proposed Executive Order
include, as it does, a condition that existing labor contracts are not
incorporated as part of the Code. This paragraph (Article II-2)
states in substance that companies under the Code and :representatives
of labor agree to adhere to existing labor contracts. Inasmuch as
both labor and industry have approved the provision, the Deputy
Administrator joins wvith the Labor Advisor in strongly recom-
miending that it be retained.
LBnon Pnov'IsIOns

lifaximumn working hours are established according to classes of
employees, ranging from 40 hours per wTeek for ~general office eml-
ployees up to 48 hours per week for the workers directly engaged in
the servicing and operation of transportation vehicles. T1Co care for
requirements peculiar to the Transit Industry, the Code permits the
maximum hours to be averaged over a six-month period, also for an
allowance (above the 48-hour maximum) of not more than sixr hours
per week in the time worked b;yT the operating ctlass of employes
The minimum wage is to be not less than 40 cents per hour for
workers on an hourly rate. If the hourly rate was less than 40 cents
an hour on July 15, 1929, the rate under the Code may be lower, but
not less than 30 cents an hour. For salaried office workers a minii-
mum is provided of from $15.00 to $12.00 per week, varying with
population. Employment of persons under 16 years of age is


Under the recommended Code, the Transit Industry will reemploy
7,250 additional worikers_ arnccring to an estimate made by the
Division of Economic Research and Planning. This will increase
the annual pay roll of the industry by some $11,000,0001, or about
3!,%r. The actual number of additional workers mlay be somewhat
less than the 7,250 mentioned, in proportion to the number of wForkers
comings under existing Inbor contracts that permit a wrork week in
excess of the maximum presented in the Code.
The income account. of the transit industry, representing an invest-
ment of more than four billion dollars, writh an additional billion
dollars invested in the manufacturing and- distribution of electrical
energy, shows a net loss of about $6.110,0100 in 19:32, as against a net
income of about $81,57f0,000 in 1929. Because of this financial situa-
tion it is believed that the burden of increased wag~res, which the
induist~ry seemed w~illing to assume under the Codle, is all that can
be fairly expected at t~he present time.

The Deputy Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including without limita-
tion, subsection (a) of Section 7, and subsection (b) of Section 10
thereof. and that
(b) The American Transit Association, the app~liennt group, is
truly representative of the Transit Indlustry, althouigh its C'onstitu-
tion and byla ws might possibly be used to pr'event members of the
Industry from becoming members of thle Asso~ciation. Beenuse of
this situation it is believed that the agppoval of the Code should be
subject to the condition, as incorporated in the proposed Executive
Order, that the American Transit Association mend its bylaws so
that any inequitable conditions wrill be eliminated\.
(c) The Cod~e as recommnnende is not d~esigned to promote mon-
opolies or t~o eliminate or oIppress smnial enterprises anld will not oper-
ate to discrim~inate against them, and will tenld to effectuante the policy
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Clode be immediately
Respectfully submitted.
Deputy Admini~Strator.



To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted by the Ameri-
can Transit Association on behalf of andi for the Transit Industry,
and upon approval by the President shall be the standard of fair
competition for this Industry.
To the end that the Transit Industry may do its part in national
economic recovery and carry out the purposes set forth above, the
proponents of this Code represent that it is necessary that this Code
reflect some of the fundamental natural differencess between this
Indlustryr and production and distribution industries, which rse ais
follows :
1. The Transit Industry generally is unable to p~ass on to the con-
sumer increased- costs resulting from its effort to carry out the pur-
poses of the National Industrial Recovery Act, because (a) it's
rates are controlled by State regulatory authority or muniicipal
franchise and (b) even if increased fares were permitted, they are
now, with few exceptions, at the upper economic limit and further
increases would not produce increased revenue.
2. Wage rates of transit labor have been reduced less than in
most. other industries, having been decreased an average of less thian
10 percent from the peak levels of 1929-30. Freedoml from seasonal
fluctuation in employment sustains annual employee earnings, and
voluntary sprealingr of ork- has kepnt uinemployme~n to a minimum.i
3. The operating units within this Industry in general are not
in competition with each other, and when such competition exists
it is, with very few exceptions, subject to full regulation by state
authority or murnicipal franchise. B~ut though regulated: as to com-
petition within the Indlustry, mass transportation is subject to keen
competition from nutomobiles operating for hire as taxicabs, service
cars, or on a share-expense basis with little or no control by public
regulatory bodies.

(A) The term "' Transit Industry ", as used herein, shall mean and
include :
1. Electric railways and trolley bus lines transporting passengers
by electric car or trolley bus; provided that electric railways engaged
in both intrastate and interstate commerce may operate either the
intrastate or interstate portions of their business, or both, under this
Codle unless prevented by Federal law.
2. Automotive buses transporting,-~. passengers solely within State
hines, except when engaged in interstate commerce.

3. Automotive buses transporting passengers in interstate com-
merce or in both intrastate and interstate commerce where such
operations are conducted entirely within a single metropolitan area
or within a group of municipalities when the transportation service
is essentially urban or suburban in character.
4. The performance of all service and the transaction of all busi-
ness incident to the operation of the foregoing facilities.
(a) No new bus route or bus line or extensions to existing bus
routes or lines shall be established in interstate commerce without
also complying with the licensing anid rate provisions of any Code
of Fair Comipetition adopted for the M~otor Bus Industry relating
(b) Th~e agency set up by the provisions of Article VI, A-4 hereof,
shall have jurisdiction to hear and finally decide all disputes in
regard to a specific route or line being or not being engaged in
interstate commerce beyond the limitationsu provided for mn para-
graphi 3 of this AIrticle.
(B) The term employee ",? as used herein, includes any person
engaged in any phase of the Transit Industry, irrespective of the
method of payment of his compensation or of the nature of his
interest otherwise, inl said Industry.
(C) The termi person ", as used herein, includes, but shall not
be limited to, natural persons, trusts, trustees, receivers, trustees in
ba nkruptcy, partnersh ips, associations, private corporations, and
municipal corporations and other governme~ntal agepncpes to t~he full
extent permitted by Inwr.
(D) The ter~m "' memberr of the Industry ", as used herein, includes
all employers of thle aforesaidl employees andi any person operation
a vehicle inl the Tr~ansit Indlustr~y on his own behalf, irrespective of
whether he be an employer.
(E) The term effective dlate ", as used herein, means the four-
teenth dayr after this Code shall havte been approved byS th'e Pr~esident
of the United States.
(F) Population for the p~urpoises of this Code shall be dletermlined
by reference to the 1930 Fedleral Census.
On and after thec effective da~te the following employees in the
Transit Industry shall not ~or~k or be permitted to ~or~k in excess
of the following hours in any one week except as hereinafter set
forth, or as other~ise p-rovi;ded in existing labor agreements:
Hours Der aveels
A. Genlernl office emlog,-yees.--- -_--__--______- ___ ..... 40
B. General shop empl~oyee~s-- _. -_ __ _._ 44
C. Car house and garage service employees, maintenance,
track, line, power house, and substation department
employees .. .-------- ------ ---------------- 1. 4
D. Trainmen, bus operators, ticket agents, and related trans-
portation group s___ __ _-__ ___ ----- -------------- 48
With ano llcwnunce not to exceed 6 hours per week,
as hereinafter set forth. The Transit Industry re~cog-
nizes the desirability of an eight-bour daoy and 48-hour
week, but mlany of the companies cannot now ask
their men to accept the reduction in their wages result-
ing from such a reduction in hours and it is impossible
for the Industry to assume the burden of an increase

ifn the hourly rates of pay to offset such reduction.
The Industry is required to. provide practically con-
tinuous service, and a greater part of it for an 18-hour
period or more each day; its vehicles must be dispatched
from ear houses or garages singly and not in groups
leaving at the same instant, and their return is made in
a similarly irregular fashion, according to the varying
demands for serv-ice. Ino div'idinig the work among this
class of employ\ees, notwithstanding the fact that every
effort may be made to equalize the number of hours
worked, substantial variations in length of runs (day's
work for this class of employees) cannot be avoideltd.
Therefore employees in this class may work on a gradlu-
ated schedule of hours, provided that no such employee
shall be allowed to work in excess of salidl 48 hours by
more than 6 hours per week. This provision of maximum
hours shall be considered as fully complied with if the
average number of hours per week for any individual
measured over a six-months' period ball fall within
the prescribed maximum. This maximum hllbe
reached by not more than 10 percent of the total number
of such employees. Members of the Industry shall not
increase the present hours of labor for trainmen and
bus operators now prevailing except as may be agreed
upon in connection with existing or new agreements;
provided, however, that this shall not prevent increasing
hours for such trainmen and bus operators as are not
receiving a reasonable amount of work, but in no, event
shall the hours of labor be increased beyond those
prescribed in this Code.
The maximum-hour provisions of this Code shall not apply to
emergency crews or during the period of emergencies such as snow-
storms, floods, fires, or other causes beyond t~he control of the member
of the' Industry.
Thie following classes of employees shall be exempt from the pro-
visions of this Article and of Article IVl of this Cod~e:
(a) Mnageme~P~~nt,~ executive, andl supervisory employees receiving
$35.00 or more per week;
(b) Janitors, watchmnen, crossing fingmen and gatemen, and those
employees who are commonly termed 'e wTorker-pension "' employees.
This class shall not exceed 5 percent of the total number of employees
of the member of the I~ndustry.


The minimum-wage rates except as otherwise provided in existing
labor agreements, shall be as follows:
For employees paid on a weekly or a monthly basis, not less than
$j15.00 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 of between 250,000 and 500,000 population, or in the imme-
diate trade area of such eity; nor less than Il$1.00 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
not less than $12.00 per week.
The minimum wage for employees compensated on a weekly or
monthly basis who work less than full time shall be the pro rats
amount of th~e mninimna specified above.

For employees paid on an hourly rate, not less than 40 cents per
hour unless thle hourly rate for the same class of work on July 15,
1929, was less than 40 cents per hour, in which latter case not less
than the hourly rate on July 15, 1929, and in no event less than
30 cents per hour.
WIrhe~e pi)eceworkr, cooperative or profit-sharing rates exist, the
total wages paid per week to any employee so working, divided by
the number of hours actually: worked per week by such employee,
shall be equal to at least thee minimum hourly wages prescribed in this
Office boys and girls and messengers, under 21 years of age, and
a~pprentices shall be paid not less than 80 percent of the minimum
wages pr~escribedl in this Code; provided, however, that the number
of such employees shall not exceed 5 percent of the total number
of employees of the member of the Industry.

No person under 16 years of age shall be employed in thre Transit

To further effectuate the policies of the Act, a Code Authority is
hereby set up to cooperate with the Administrator in the administra-
tion of this Code.
(A) 1. Thne Code Authority shall consist of seven (i7) voting
mlember~s. Not more than three (3) nonvotinga additional represent-
ativ-es mray be: appointed by the Adm~inistratorI. One of such voting
members shall at all times be the President of the American Transit
Assoctiation, and~ o~ne shall be? the~ Mnagn~~ing-Director of said Associa-
2. The remaining five members shall be elected by a vote: of mem-
bers of the Industr~y and shall represent the various interests in the
The selection of such, candidates atnd the mlethodl of electing such
members shall be subject to approval by) thle Administrator. At
least two (2) of sa~id voting members shall be representatives of
labor, and at least one (1) may be a representative of a member of
the Industry not holding membership in the Amnerican Transit
3. Any trade or industrial association participating in the selection
or activities of the Code Authority shall impose no equitable
restrictions on admission to membership therein, anld shall evidence
compliance with this provision in any7 manner required by the
4. The Code Authority shall as soonl as possible after the approval
of this Code, appoint two (2) Individuals who shall jointly with two
(2) individuals appointed by~ the 1\Iotor Bus Code Authority7 hear and
finally determine any~ question that may be referred to it by the
Transit Code Authority as to whether any individual bus opera-
tion de~fined in Art~icle II, parlagraph ~A-3, of this Code shall be
included under this Code. In case the joint board fails or refuses to

decide within ten (10) days any question submitted, the matter shall
be referred to the Administrator for final disposition.
5. An appeal from any action by the Code Authority affecting the
rights of any person subject to this Code may be taken to the
(B) The Code Authority shall have the following duties and
powers to the extent permitted by the National Industrial Recovery
;Act and subject to review by the Administrator:
1. To admlinister the provisions of this Code, secure adherence
thereto, hear complaints, and otherwise carry out for the Transit
Industry the purposes of the Act as herein set forth.
2. To require reports from the members of the Industry with
respect to wages, hours of labor, conditions of emnploymuent, number
of employees, and other matters pertinent to the purposes of this
Code, in order that. the President may be kept informedl with respect
to the obs~ervance ther~eof.
3. Equitably to proportion and collect from time to time the cost
of establishing and maintaining the Code Authority fromt suc-h miem-
bers of the Industry who fully participate in the Codle by exer-
cisinga the right to vote and/'or to use the N.R.A. insignia. Only
such members who participate in the expense of establishing and
maintaining thle Code Authlority shall be permitted publicly to
evidence their participation by displaying the N.R.A. insignia.
The Ciode Authority1, subject to review by the Admninistrator, shall
authorize the use. of the N.R.A. insignia to nlm~emes of the Industry
according to the provisions of this paragraph.
4. After consulting the Industry, to make recommendations to the
Administrator for the revision, modification, or alteration of this
Code from time to time.
(C) Whereaas it is deemed unfair competition by the Transit In-
ductryl for anyV typec of transportation cairrying passengers for hire
in areas served by members of this Industry to pay substantially
lower wages or to permit substantially longer workiing hours than
those established by this Industry in this Code, the Codle Authority
is hereby empowered to assist in the securing of stay orders and
exemptions from the Admlzinistraitor in respect of any area affected
by unfair competition of a competing industry, to confer with Code
Authorities of competing industries, to file petitions for the modifica-
tion of or complaints under the Codes of competing industries, and
otherwise to take such steps as mlay be necessary or proper to place
the Transit Industry on a basis of fair competition.

1. (a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of~ employers of
labor, or their agents, in the designation of such representatives or
mn self-or~aganization or in other concerted activities for the purpose
of collective bargaining or other muitual aid or protection;
(b) No employee and no one, seeking employment shall be required
as a condition of employment to join any) company umaon or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing; and


3 1262 08851 7791

(c) Employers shaHl comply with the maximum hours of labor
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President, as provided herein.
2. Mlany of the street railway and bus companies which come
under the provisions of this Code have working agreements with
their employees through American Federation of Labor Unions,
which provide the wages, hours of labor and working conditions, and
further provide for arbitration in all disputes of any kind that can-
not be mutually adjusted, practically all of which agreements also
provide for renewals through mediation and arbitration. It is
understood and agreed to by the companies under this Code that all
labor agreements will be lived up to and carried out, and this pro-
vision is agreed to by representatives of the employees. The em-
ployees of some of the companies that come under this Clode have
local associations, organizations, or other plans of collective bargain-
in.Howfever, it is clearly understood that if either the employees
under the American Federation of Labor Unions or under the afore-
said local associations, organizations, or other plans want to change
their form of organization under the provisions of section 7 (a) of
the National Industrial Recovery Act, they are at liberty to do so as
that section provides.
3. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Subsection (b) of Section 10 of the National Industrial
Recovery Act, fromt time to time to cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said Act.
4. Within each state, members of! the Industry shall comply with
any laws of such, state imposing more stringent requirements, regu-
Int~ing the age of employees, wages, hours of work or health, fire, or
general working conditions, than under thiis Code.
5. If this Code or any provision thereof, because of peculiar
circumstances, will create great and unavoidable hardship to any
member of the Industry, such member in a petition approved by
the Code Authority may apply for a stay of this C'ode or such
provision thereof, pending a summary investigation by the National
Recovery Administration, if such member of the Industry agrees
in such petition to abide by the decision of such investigation. The
refusal of any such approval shall be subject to review by the
6. In the case of any member of the Industry also employing
labor in any other industry, the provisions of this Code shall apple
to and affect only that part of such member-'suieswihi
included i~n the Transit Industry.
7. This Code shall terminate whenever Title I of the National
Industrial Recov~ery Act ceases to be in effect, but not later than
June 15th, 1935.