NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MOTOR BUS INDUSTRY
AS APPROVED ON APRIL 26, 1934
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Approved Code No. 66--Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
MOTOR BUS INDUSTRY
As Approved on April 26, 1934
APPROVING AMENDMENT TO THE CODE OF F.IR COMPETITION FOR THE
MOTOR Bus INDUSTRY
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 approval of an amend-
ment to a Code of Fair Competition for the Motor Bus Industry,
and hearings having been duly held thereon and the annexed report
on said amendment, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amendment and the Code as
constituted after being amended comply in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act, and do hereby order that said amendment
be and it is hereby approved, and that the previous approval of said
Code is hereby modified to include an approval of the said Code in
its entirety as amended.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
SOL A. ROSENBLATT,
April 26, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report of the hearings on an amendment to the Code
of Fair Competition for the Motor Bus Industry conducted in Wash-
ington on the 16th day of January, 1934, with adjourned meetings up
to and including the 23rd day of March, 1934, in accordance with the
provisions of the National Industrial Recovery Act and the Code of
Fair Competition for the Motor Bus Industry, Article VI, Section 2,
Every person who requested an appearance was fairly heard in
public in accordance with the regulations of the National Recovery
Administration. There were present duly authorized representa-
tives of the Code Authority and other representatives of the
The amendment adds to Article VII, Section 2 of the said Code
an additional Subsection designated Subsection (c).
The Code of Fair Competition for the Motor Bus Industry,
approved October 31, 1933, contained no provision for the establish-
ment of minimum rates, fares or charges of any kind or character
which has resulted in destructive, unfair and below cost competition
by members of the Industry. The National Association of Motor
Bus Operators submitted an amendment which will correct this con-
dition by providing for the establishment of minimum rates, fares or
charges in specific cases, below which it shall be unfair competition
for members of the Industry to furnish transportation.
Labor representatives were present at the first hearing and have
stated that they have no objection whatever to the said amendment.
There were no other objections at the hearing.
The Deputy Administrator in his final report to me on said amend-
ment to said Code, having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) The amendment to said Code and the said Code as amended
are well designed to promote the policies and purposes of Title I
of the National Industrial Recovery Act including the removal of
obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for
the general welfare by promoting the organization of industry for
the purpose of cooperative action among trade groups, by inducing
and maintaining united action of labor and management under ade-
quate governmental sanction and supervision, by eliminating unfair
competitive practices, by promoting the fullest possible utilization
of the present productive capacity of industries, by avoiding undue
restriction of production, by increasing the consumption of indus-
trial and agricultural products through increasing purchasing power,
by reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection (b) of Section 10 thereof.
(c) The National Association of Motor Bus Operators was and is
an industrial association truly representative of the aforesaid Indus-
try and that said association imposed and imposes no inequitable
restrictions on admission to membership therein and has applied for
or consents to this amendment.
(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to the approval of
For these reasons, this amendment has been approved.
HUGH S. JOHNSON,
AIPRTL 2G. 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE MOTOR BUS INDUSTRY
There shall be added to Section 2 of Article VII of the Code of
Fair Competition for the Motor Bus Industry the following Sub-
section to be known as Subsection (c).
ARTICLE VII, SECTION 2, SUBSECTION (C)-RATES AND TARIFFS
In order to carry out the purposes of the Act including the lim-
itation of hours of employment, the payment of minimum wages
herein established and the furnishing of employment for labor, it
is the purpose of this Section to permit, in specific cases of inter-
state transportation, the establishment of minimum rates, fares or
charges below which it shall be unfair competition for members of
the Industry to furnish such interstate transportation, but not to
permit thereby the establishment of maximum reasonable rates, fares
or charges. After any rate, fare or charge has become effective in
either of the ways herein provided, it shall be unfair competition
for any member of the Industry engaging in such transportation
to publish, demand or collect any rate, fare or charge which is less
than the effective rate, fare or charge until the same has been modi-
fied or revised pursuant to the provisions of this Section.
a. Any member of the Industry may at any time file a complaint
with the Code Authority that any rate, fare or charge for interstate
transportation, whether or not prescribed under the provisions of
this Section or filed by a member of the Industry, is below the low-
est reasonable cost of furnishing such transportation and therefore
results in unfair competition. Upon receipt o(f any such cortplaint,
the Code Authority shall give at least ten (10) days' notice of hear-
ing to all members of the Industry who are directly affected by
such rate, fare or charge. At such hearing, to be held within thirty
(30) days after receipt of the complaint, unless otherwise provided
by the Administrator, the Code Authority together with the Admin-
istration Member thereof shall procure and hear all pertinent facts
including statistics relating to the cost of the service in question.
If the Code Authority shall find at such hearing that any such rate,
fare or charge complained of is below the lowest reasonable cost, as
defined by the Administrator, of furnishing such transportation
and therefore results in unfair competition, the Code Authority shall
arrive at a minimum rate, fare or charge necessary to meet such
lowest reasonable cost of the service to be rendered. Such rate, fare
or charge so arrived at shall be immediately submitted to the Ad-
ministrator and shall be advertised for a period of five (5) days by
posting a copy of the same in the Post Office of such of the terminals
between which the rate, fare or charge is applicable, unless the
Administrator shall otherwise provide.
b. Such rate, fare or charge shall become effective on the fifteenth
day from the date of the first advertisement thereof as hereinabove
provided unless within such period
(1) a member of the Industry shall file an appeal to the
Administrator to review the action of the Code Authority; or
(2) an interested party other than a member of the Industry
files a protest with the Administrator that such rate, fare or
charge has been improperly established.
c. In case of such an appeal or protest, the Code Authority shall
give immediate notice thereof to all members of the Industry
directly affected by such rate, fare or charge, and such rate, fare or
charge shall become effective only upon approval of the Admin-
istrator as hereinabove provided. Any party so appealing or pro-
testing shall submit to the Administrator the cost data, or other
information on which said appeal or protest is based, and the
Administrator shall immediately submit copies of the same to the
Code Authority. If the Administrator shall find, after such notice
and hearing as he may prescribe,
(1) on appeal by a,.member of the Industry, that the Code
Authority acted pursuant to the provisions of this Section in
establishing such rate, fare or charge; or
(2) on protest filed by any interested party other than a
member of the Industry, that the rate, fare or charge has been
properly established; or
(3) that any modification of any such minimum rate, fare
or charge appealed from or protested will carry out the pro-
visions of this Section;
he may approve such minimum rate, fare or charge or appropriate
modification thereof which shall become effective when he shall
d. The Code Authority may at any time on its own initiative or
on complaint filed, lower the minimum rate, fare or charge estab-
lished under the provisions of this Section. The denial of any such
complaint or the refusal to act thereon within fifteen (15) days shall
be subject to review by the Administrator.
e. The application of the provisions of this Section shall be subject
to rules and regulations with respect thereto issued by the Admin-
istrator, and the Administrator after three (3) days' notice to the
Code Authority, may, in his discretion, cancel or suspend any rate,
fare or charge so fixed at any time.
Approved Code No. 66. Amendment No. 1.
Registry No. 1741-2-03.
UNIVERSITY OF FLORIDA
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