Code of fair competition for the restaurant trade in the territory of Hawaii as approved on March 5, 1935

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Title:
Code of fair competition for the restaurant trade in the territory of Hawaii as approved on March 5, 1935
Portion of title:
Restaurant trade
Physical Description:
p. 153-167 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

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Subjects / Keywords:
Restaurants -- Law and legislation -- Hawaii   ( lcsh )
Genre:
non-fiction   ( marcgt )

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General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1728-31."
General Note:
"Approved Code No. 553."

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University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 645246513
ocn645246513
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AA00009890:00001


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NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION
FOR THE

RESTAURANT TRADE IN

THE TERRITORY OF HAWAII


AS APPROVED ON MARCH 5, 1935


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1935


I i
For sale by the Superintendent of Documents. Washington, D. C. - Price 5 cents


UNv. OF- FL LIU.




u.s. Dgoe ino


Approved Code No. 553


Registry No. 1728-31























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Portlanul, Oreg.: 215 New Post Office Building.
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San Francisco, Calif.: 310 Customhouse;
Seattle, Wash.: 809 Federal Office Building.,












Approved Code No. 553


CODE OF FAIR COMPETITION
FOR THE

RESTAURANT TRADE IN THE TERRITORY OF
HAWAII

As Approved on March 5, 1935


ORDER

CODE OF FAIR COMPETITION FOR THE RESTAURANT TRADE IN TIE
TERRITORY OF HAWAII
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 a Code of
Fair Competition for the Restaurant Trade in the Territory of
Hawaii, and hearings having been duly held thereon, and the Dep-
uty Administrator having rendered his report, and the annexed
report of the National Industrial Recovery Board on said Code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise
does hereby incorporate by reference the annexed report of the
National Industrial Recovery Board, and does hereby concur in and
adopt the findings of fact made therein, and does further find that
the said Code complies in all respects with the pertinent provisions
and will promote the policy and purposes of said Title of said Act,
and does hereby order that said Code of Fair Competition for the
Restaurant Trade in the Territory of Hawaii, annexed hereto, be,
and it is hereby approved, subject to the following conditions:
(1) That all members of the Restaurant Trade as defined in the
said Code under Article II, Sections 1 and 2 thereof, to the extent,
that they are engaging in the said trade in the Territory of Hawaii,
shall be exempt from the provisions of the Code of Fair Competition
for the Restaurant Industry, as approved on February 16, 1934,
provided, however, that the exemption hereinabove granted does not
extend to operators of hotel restaurants."
(2) This Code shall become effective thirty (30) days from the
date hereof unless good cause to the contrary is shown to the Na-


119420-1603-39---35


(153)






154

tional Industrial Recovery Board within twenty-five (25) days and
the National Industrial Recovery Board issues a subsequent order
staying or modifying this Order of Approval.
NATIONAL INDUSTRIAL L RECOVERY BOARD,
ByW. A. HARRIMAN, Administrative Officer.
Approval recommended:
ARMIN W. RILEY,
Division A dm iistrator.
WASHINGTON, D. C.,
March 5, 1935.













REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the
Restaurant Trade in the Territory of Hawaii. This Code was spon-
sored by the Hawaiian Territorial Restaurant Association. The
Public Hearing on this Code was held in Honolulu, T. H., on March
30, 1934. Adjourned Public Hearings were held April 2, 1934 and
April 11, 1934. There are approximately three hundred seventy-five
(375) firms and approximately one thousand (1,000) employees
in this Trade in Hawaii. The capital invested is slightly less than
One Million Dollars ($1,000,000) and the annual trade is slightly
less than Three Million Dollars ($3,000,000). The trade is domi-
nated by the Orientals. There are few large firms.

HOURS AND WAGES

The Code provides for a maximum fifty-four (54) "hour week
for males and forty-eight (48) hour for females. Employees are
not permitted more than six (6) days in any one week. Watchmen
and guards are permitted to work fifty-six (56) hours per week but
may not work more than thirteen (13) days in any fourteen (14)
day period. Chief cooks who receive not less than Eighteen Dollars
($18.00) per week are permitted to work seven (7) days per week
but not more than fifty-six (56) hours per week. Main tenance
employees are exempted from the maximum hours but must be
paid one and one-third (11/3) times their normal rate for all hours
in excess of the basic hour maximum permitted other employees.
In cases of emergency threatening. damage or destruction to the
property of a restaurant establishment, maintenance employees,
watchmen, and guards may be permitted to work in excess of six
(6) days per week. Executives receiving not less than Twenty-
five Dollars ($25.00) per week are permitted to work in excess of
the maximum hours. In restaurants employing twenty (20) work-
ers or less the number of workers who may be permitted to work
overtime is restricted to one worker for every five (5) employed.
In restaurants employing more than twenty (20) workers the num-
ber allowed to work overtime is restricted to one worker for every
five (5) for the first twenty (20) workers, and to one worker for
every eight (8) above twenty (20).
Non-service employees must be paid not less than Thirteen and
50/100 Dollars ($13.50) for a fifty-four (54) hour week in cities over
25,000 and not less than Twelve and 50/100 Dollars ($12.50) per week
in cities between 10,000 and 25,000 and not less than Eleven and
50/100 Dollars ($11.50) per week in places with a population less
than 10,000. Service employees must be paid not less than Twelve
(155)






156


Dollars ($12.00) for a fifty-four (54) hour week in cities over 25,000
and not less than Eleven Dollars ($11.00) per week in cities between
10,000 and 25,000, and not less than Ten Dollars ($10.00) per week
in places with a population of less than 10,000.
The Code prohibits child labor.

ECONOMIC EFFECT OF THE CODE

The proposed Code will result in an average weekly increase in
weekly wages of about thirty percent (30%) and an increase in em-
ployment of about twenty-five percent (25%).

FINDINGS

The Deputy Administrator for Hawaii in a letter addressed to
the National Industrial Recovery Board has made a clear and de-
tailed report of the present economic condition of this Trade. He
has made lengthy and detailed findings of fact in regard to said
Trade. The said report of the Deputy Administrator for Hawaii
with the findings contained therein is incorporated by reference into
this report. The National Industrial Recovery Board does hereby
expressly concur in and adopt the findings contained in the said re-
port of the Deputy Administrator for Hawaii.
For these reasons, this Code has been approved.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
A dm in; istrative Officer.
MARCH 5, 1935.












CODE OF FAIR COMPETITION FOR THE RESTAURANT
TRADE IN THE TERRITORY OF HAWAII

ARTICLE I-PURPOSES
To effectuate the policies of Title I of the National Industrial Re-
covery Act, this Code is approved as a Code of Fair Competition for
the Restaurant Trade, and its provisions shall be the standards of
fair competition for such Trade and be binding upon every member
thereof.
ARTICLE I1-DEFINITIONS
SECTION 1. The term "Restaurant Trade" as used herein shall
mean the business of operating, directly or indirectly or through
any subdivision, a restaurant, as hereinafter defined in Section 2.
SECTION 2. The term "Restaurant" as used herein shall include
any establishment which, for compensation, prepares and offers food
for consumption either on any of its premises, or by catering and
banquet service, or by box lunch service, or by curb service, and
customarily serves at least ten (10) people per day. This includes,
without limitation, concessionaires, wherever located, clubs, and
employee restaurants, but excludes school, hospital and hotel res-
taurants.
SECTION 3. The term Food as used herein shall mean nutritive
material intended for human consumption, in solid and/or liquid
form, whether simple, mixed, compounded, cooked, uncooked, or
otherwise prepared, excluding however, preparations sold or pro-
duced primarily for their vitamin content, or medicinal or quasi-
medicinal preparations.
SECTION 4. The term Member of the Trade as used herein shall
include, but without limitation, any individual, partnership, associa-
tion, corporation, or other form of enterprise engaged in the Trade,
either as an employer or on his or its own behalf.
SECTION 5. The term Employee as used herein shall include any
and all persons engaged in the Trade, however compensated, except
a member of the Trade.
SECTION 6. The term Employer" as used herein shall include
anyone by whom such employee is compensated or employed.
SECTION 7. The term "Curb Employee as used herein shall mean
employees engaged exclusively as outside salesmen serving curb
customers.
SECTION 8. Employee Retaurrants are those conducted in con-
nection with another business exclusively for the convenience and/or
financial accommodation of the employees of that business.
SECTION 9. The term Maintcinane Employee as used herein
shall mean an employee essential to the upkeep and/or preservation
of the premises and property of a restaurant.
SSee paragraph 2 (1) of order approving this Code.
(157)






158


SECTION 10. The terms "Watch men" and Guards" as used
herein shall mean employees engaged in watching and safeguarding
the premises and property of a restaurant.
SECTION 11. (a) The term "Service Employee" as used herein
shall include waiters and waitresses engaged in table and/or room
service, and hat and coat checkers, whose duties consist chiefly in
rendering direct service to customers and who regularly receive
monetary recognition from such customers for the services rendered;
provided however, that if the classification of any employee or group
of employees as service or non-service employees should operate to
discriminate unjustly between employees of the same restaurant
establishment or between restaurant establishments of the same class
operating under similar conditions, the National Industrial Recov-
ery Board on application by such affected parties, and on recom-
mendation of the Territorial Code Authority, may, after such notice
and hearing as it may deem necessary, make such reclassification as
justice may require.
(b) Employees who are engaged in serving the public from behind
the counter shall not be classified as service employees.
SECTION 12. The term Executive as used herein shall mean an
employee responsible for the management of the business or a recog-
nized subdivision thereof.
SECTION 13. The term Part-time Employee as used herein shall
mean an employee who works less than the maximum work week
prescribed herein.
SECTION 14. The term County as used herein means the City
and County of Honolulu as defined in Section 1717 of the Revised
Laws of Hawaii 1925, and each of the counties of the Territory of
Hawaii as defined in Section 1575 of the Revised Laws of Hawaii
1925.
SECTION 15. The terms President ", and "Act ", as used herein
shall mean, respectively, the President of the United States and
Title I of the National Industrial Recovery Act.
SECTION 16. Population for the purposes of this Code shall be
determined by reference to the Fifteenth Census of the United States
(U. S. Department of Commerce, Bureau of the Census, 1930).
ARTICLE III-HoURs

SECTION 1. Basic Working Days.-No employee shall be permitted
to work more than six (6) days in any one week, except as herein-
after otherwise provided.
SECTION 2. Basic Working Hours.-No male employee shall be
permitted to work more than fifty-four (54) hours in any one week,
except as provided in Section 4 of this Article. No female employee
shall be permitted to work more than forty-eight (48) hours in any
one week, except as provided in Section 4 of this Article.
SECTION 3. E.m.ployu'nt by Several Employers.-No employer
shall knowingly permit any employee to work for any time which,
when added to the time spent at work for another employer or em-
ployers, exceeds the maximum permitted herein.
SECTION 4. Exceptions to Maximum Hours or Periods of Labor.





159


(a) Watchmen and Guards.-Watchmen and guards shall not be
permitted to work more than thirteen (13) days in any fourteen
(14) day period and not more than fifty-six (56) hours per week.
(b) Maintenance Emnployi/ees.-The maximum hours of work pre-
-cri Ld in this Article shall not apply to maintenance employees,
provided, however, that such employees shall be paid at not less than
one and one-third times their normal rate for all hours worked in
excess of the maximum permitted their respective sexes under Sec-
tion 2 of this Article.
(c) Executives.-Subject to the conditions set forth in Section 5
of this Article, executives regularly receiving not less than Twenty-
five Dollars ($325.00) per week, exclusive of any charges for meals
may be permitted to work in excess of the maximum hours of work
prescribed in this Article.
(d) Chief Cooks.-Chief cooks who are employees receiving not
less than Eighteen Dollars (,.18.00) per week, exclusive of any
charge.. for meals, may be peirmiittved to work seven (7) days per
week but not more than fifty-six (56) hours per w\\-k.
(e) Emergency.-In cases of emergency requiring the specific at-
tention of a particular executive, maintenance employee, watchman
and/or guard, or threatening d;ua!;ige or destruction to the property
of a restaurant establishment. such exV'Ltlive receiving the salary
lhii ,iimlbove specified, maintenance employee, watchman and/or
gula:rd may be permitted to work in excess of six (6) days per week.
SEC-TION 5. Limitation Upon. Nuflmber of Pci,.,,,I Work'ing Unrce-
str'icted Ho'urs.-Notwithstanding the provisions of the foregoing
sections of this Article, and regardless of the number of peri-ons
otherwise permitted to wTrk unrestricted hours, the total number of
w,:-k.:rs in any restaurant (whether such workers are executiv.-,
pro~r'i, tors, partners, persons not receiving monetary wages, or
others) who may be permitted to work unrestricted hours, shall not
exceed the following ratio:
(a) In restaurants comprised of twenty (20) workers or less, the
total number of workers who may be permitted to woT k unrestricted
hours (not including the workers specified in Section 4 (a) of this
Article) shall not exceed one (1) worker for every (5) workers or
fraction thereof.
(b) In establishments comprised of more than 'i enty (20) workers,
the total number of workers (not including those workers specified in
Section 4 (a) of this Article) shall not exceed one (1) worker for
ev:-vry five (5) wol;ki- for the first twenty (20) work, .-s, and shall
not exceed one (1) worker for every eight (8) worlker-- above twenty
(20).
SECTION 6. Spread of Wo-,. '/,11t Hoiurs almd Yum.bcr of Shjift Pier
D,.y.-Not more than fourteen (14) coiji-ltive hoii,-' shall elapse
i- tween the 1'bgiinin.m and the t:'.nii!i tion of the hours worked by
any employee in any twenty-four (24) hour period and not more than
two (2) intervals off duty shall be p-rniiitted during the couri- of
such fourteen (14) consecutive hour period of employment. Time
out for meals within the fourteen (14) hour spread but not to exceed
a total of one (1) hour, shall not constitute an it;-~ val off duty
between split shifts.
11' 42 '---1603-39---35--2






160


A RTnI.E IV-W GES

SI.c'TON 1. Bi Rt;( Sclirdule of TVng(c.-(a) Except as hereinafter
other' ite p)'rvided. employees shall be paid each week at not less
than the minimtun rates of wages hereinbelow set. forth for a fifty-
Ifiii (54) h]our work week.

Population of cities or places Nonervice Service
employees employees
Over 23,900 .----------... ----............----..--------...-----......-... --- $13.50 $12.00
1 I.1:;1 to 25,000. ...-----------------..... --------......------.------- ----- 12.50 11.00
Le than 10,000-..-- -- -----------....... ..------.---.....--- ..-- 11.50 10.00

(b) (urb Elmploye",'s.-The minimum wages lprescribed in para-
graph (a) of Se,.tion 1 of this Article for service employees shall
apply to curb employees. The Territorial Code Authority may, how-
ever, appoint a joint committee of employers of curb employees and
employ'er.- who do not employ curb employees to investigate the effect
of the provi-ioni of this subsection upon the entire Restaurant In-
dustry. which committee may submit. to the National Industrial Re-
covn Bo(arl reconnineniidations baed upon its inv estigation and
study. for its further cmonideration of this provision or for the modi-
fication thereof. The National Industrial Re,-overy Board may, after
ncli notice and hearing as it may prescribe, approve such recoiiiinein-
dlati: -, and upon such approval by the National Industrial Re-
(v. r... Board, such rec-(omnlniidations lshll constitute a part of and
have the same forre and effect as the provisions of this Code.
(c) Cha'ir-e for Uniforms.-Where an employee is required by his
employer to wear a uniform, no deductions from tlhe minimum wages
prescribed in this Article shall be made by such employer, except
thit such uniform may, by agreement between .-i:ic empluvye.- and his
employer, be obtained and sold by the employer to such employee
at a price of not to exceed the ictual cost to the employer, subject
to the following conditions:
(1) that in the case of a female employee such price shall not
exs, Five Dollars ($5.00) per uniform;
(2) that in the case of a male employee such price shall not ex-
ceed Five Dollars ($5.00) per uniform, unless -ui'h uniform is of
such standard deo-ign that it may be ii-ed by such male em-ployee in
performing the same work for other employers in the same city or
place, in which ca:.- such price shall not exceed Twenty Dolla'r
($20.00) per uniform;
(3) that no employer shall permit any of his n:,-iit.; or employees
or engea'_ or conspire with any third party, to pursue any course of
action not permitted such employers by this Section;
(4) that in those cases where uniforms are plr'.eihacl dl. mtniloees
shall have the opti!nl to pur;.l-h:, such uniforms ouit-rigt, or to
r'i;iiill!'--o the employer at the rate of ten percent (10 ) of the
pric' per week; except that after notice to the Territorial Code
Authority, setting forth pcrtinnct facts, and aplpr'\-al by the Ter-
ritorial Code Authority, subject to review by the National Inldus-
trial Recovery Board, other rates may be agreed upon and author-
ized. If, upon termination of employment, such purchase price






161


shall iint have been paid in full, such employee shall, in the a:l-elnce
of a contrary agreoinornt by such employee, have the option to pay
the unpaid balance due forthwith and retain the uniform, or to
surrender such uniform to the employer, and thereby cancel the
obligation to make any further payments therefore. In lieu of such
purchase or in the case of uniforms requiring laundering, the em-
ployee may at his option rent such uniform front the employer or
'oIlpe.-n.-te the eiimployer for laiiundlry services, at a rate of not to
exceed the actual cost to the employer of laundering and in no
event to exceed twenty-five cents (250) for each laundering.
(d) No reductions from the minimum wages prescribed in this
Article, other than those specifically permitted in this Article or
:is may be required by law, shall be made for any l'l-po,-- what-
soever.
SEC(TIN 2. Li7itations on WVage Rh.,-ftioans.-No employer shall
make any reduction in the full-time weekly earning-; or the hourly
learning of any employee below those existing for the four weks
ending June 16, 19'::.
SF(TIoN,- 3. Charges.-(a) Charge for Meals.-W-here it has been
iltllulally ag.re.d between an employee and an employer that such
employe-P shall receive meals as a part of the remuneration of such
employee, a sum of not to exceed twenty-five cents (2.() for each
meal furni.h:i-d to such employee, but not to exceed a total of Three
Dollars ($:.00) per week, may be deducted from the wag.'s of -fi.h
employee. In no c;a,.- shall an employee receive less cash per w'.ek
because of this charge than that employee r;-ceiveil on June 16, 1'';;:,
for performing the same work.
(b) Charge for Lodging.-No .miiiployer shall make any d,-lduc-
tions from the minimum wages prescribed in this Article for lodg-
ing except under the following terms and conditions:
(1) Where lodging has been f',;nished to employees by e-tab-
lished custom in the restaurant establishment or by reason of pe-
culiar location ro'1uiring that employees be loldgd.
(2) No deductions shall exceed the sum of Two and 50/100 Dollars
($2.50) per week.
(3) No employee shall receive less cash per week because of this
charge than that employee received on June 16, 1933 for performing
the same work.
(4) No dedil tions shall be made except by miltual agreement
Ietweien employer and employee.
(5) No deduction ',-, shall be made unless prior thereto, application
has been made to the Territorial Code Authority, setting forth the
perti:nent facts spr.ifi,-d in paragraphs 1 to 4 inclusive of this sub-
section, and approval of the Territo-,rial Code Authority, subject to
review by the Nati,,lnal Indiu-tr i.l R,._.,very Board, has been obtai-nd.
Sc rON 4. Minimum Wage Established.-This Article estab-
lishe-s a minimum rant of pay irre-pIective of the basis on which an
employee is coimploi i:atd.
SECTIo, 5. Part-time E.I;i'7'1 I :.-Part-time employees shall be
paid not less than an hourly rate prop.,rtiioni:lt to the rates pre-
scribed in the foregning sections of this Article in accordance with
hours worked.






162


SE'TION 6. Hamni,;,-pl, ,il W il', ,, .-A person w1hoe earning ca-
p;a-ity is limited because of :ig:. physical or iii ental lhalndicap, or other
illfir iiity, may be employed on light work at a wage below the min-
imum established by this Code if the vitiployer obtains from the au-
thority designated by the Unitied State.- Departimelnt of Labor a
certificate authorizing his employm ii-et at such wages and for such
hours as shall be stated in the certificate. Each employer shall file
monthly with the Ten it,'ri;l Code Authority a list of all such per-
.-on, employed by him. showing the wages paid to, and the maximum
hours of work for such employee.
ARTICLE V` -G i: .l .. b LABOR PRO VII TNS

SECTION 1. Collecti'e BR,'lyiil.- (a) Einiloyhtees shall have the
right to orgalni.ze and bi ariain collectively through I'cpre-entativ\'
of their own choo-ing, and shall be free from interference, restraint,
or coercion of employers of labor, or their agent-, in the designation
of such representatives or in self-orgianiza tion or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No eiiiployee and no one seeking employment shall be re-
quired as a condition of employment to join any comlpanly iiuioin or to
refrain from ji,;nii,. organizing, or assisting a labor Lorgnlization
of his own chooI-iln1.
(c) Employers shall comply with the maximum hours of labor,
minimum rA'te. of pay, and other conlliin.'ins of employment, ap-
proved or prlc'ribed by the President.
S!-cloN 2. Safety and lHetith.-(a) Every employer shall provide
for the safety and health of employees during the hours and at the
pI:!,.-. of their employment.
(b) Standards for -:lfety and health shall be subliitted by the Ter-
ritorial Code Authority to the National iindili-ri;al Recovery Board
within six (6) months after the effective date of this Code.
St:i ( 3. Child Labor.-No person under eighteen (18) y;c-, ,S of
age shall be employed in the Trade in li:i::irdous occupation.-. No
person under sixteen (16) years of age shall be employed in the
Trade in any c:pl;,city. Any employer shall be devnii-.d to have
complied with this provision as to age if he shall have on file a cer-
tifi.i(1' or permit, duly signed by the Authority in the Territory
empowered to issue e employment or age certificates or p1i'nlits sho\-
ing that the employee is of the required ] age.
SECTION 4. TeC',Iroral Laws.-No provi--ilo in this Code shall
Lupi. -.-de any Territoiial or Federal law which imposes (on employers
more -! Ill)ent reuUir ci.'-it, as to ;1i, of employees, \\ger. hours of
wiork, or :;a to safety, health, sanitary or gcii.-rl working conditions,
or in-iran'e, or fire prn t--,'t in, than are imposed by this Code.
SI:' Inlo 5. Pi,':ni.-All enmplovers shall post and keep posted
copl'it. of this Code in conspicuous places n',es.-iblh: to all employees.
Every member of the Trade shall comply with all rules and regula-
tions rela:i've to the p',-tin_," of provisions of Codes of Fair Compe-
tition which may from time to time be prescribed by the National
Indu tri-al Recovery Board.






163


ARriCLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
AUTHORITY
SECTION 1. (a) Within sixty (60) days after the effective date
of this Code, there shall be constituted a Territorial Code Authority
consisting of seven (7) members to be elected by nimembers of the
Trade at a meeting or meetings called by the Temporary Territorial
Code Authority, upon ten (10) days' notice sent by registered mail
to all known members of the Trade who may vote either in person,
by proxy or by mail. Each member of the Trade shall be entitled
to one vote. The members of the Territorial Code Authority first
elected shall serve until their successors are elected. During such
sixty-day period, until such Territorial Code Authority has been so
constituted, the committee of the association sponsoring this Code
shall constitute the Temporary Territorial Code Authority. The
members of the Territorial Code Authority shall be elected in the
following manner:
Two (2) shall be elected by the members of the Honolulu Restau-
rant Men's Association on the Island of Oahu;
One (1) shall be elected by the members of the Maui Restaurant
Men's Association on the Island of Maui;
One (1) shall be elected by the members of the Kauai Restaurant
Men's Association on the Island of Kauai;
One (1) shall be elected by the members of the Hawaii Restaurant
Men's Association on the Island of Hawaii; and
Two (2) shall be elected by imemb'irs of the Trade, not members
of the Associations, or failing such election, such members shall be
appointed by the National Industrial Recovery Board from a list
submitted by non-liienbers of the above named Associations, or,
if such a list is not submitted, the National Industrial Recovery Board
shall appoint from nlembers of the Trade who are not nlmembers of
the Associations, two (2) members of the Territorial Code Authority.
Where a vacancy occurs in the membership of the Territorial
Code Authority, such vacancy shall be filled by the majority vote
of the remaining Code Authority members, provided that such va-
cancy is filled by a representative from the same group as was the
vacating member.
(b) In addition to membership as above provided, there may be
three (3) members, without vote, to be known as Administration
Members, to be appointed by the National Industrial Recovery
Board to serve for such terms as it may specify.
SECTION 2. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Territorial
Code Authority shall (1) impose no inequitable restrictions on mem-
bership, and (2) submit to the National Industrial Recovery Board
true copies of its articles of association, by-laws, regulations, and
any amendments when made thereto, together with such other infor-
mation as to membership, organization, and activities as the National
Industrial Recovery Board may deem necessary to effectuate the
purposes of the Act.
SECTION 3. In order that the Territorial Code Authority shall at
all times be truly representative of the Trade and in other respects
comply with the provisions of the Act, the National Industrial
Recovery Board may prescribe such hearings as it may deem proper;






164


and there after if it shall find that the Territorial Code Authority
is not truly representative or does not in other respects comply with
the provisions of the Act, may require an appropriate modification
of the Territorial Code Authority.
SECTION 4. Nothing contained in this Code shall constitute the
members of the Territorial Code Authority partners for any purpose.
Nor shall any member of the Territorial Code Authority be liable
in any manner to anyone for any act of any other member, officer
agent or employee of the Territorial Code Authority. Nor shall
any member of the Territorial Code Authority, exercising reasonable
diligence in the conduct of his duties hereunder be liable to anyone
for any action or omission to act under this Code, except for his
own wilful malfeasance or nonfeasance.
SECTION 5. If the National Industrial Recovery Board shall at
any time determine that any action of the Territorial Code Au-
thority or any agency thereof may be unfair or unjust or contrary
to the public interest, the National Industrial Recovery Board may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action and further consideration
by such Territorial Code Authority or agency pending final action
which shall not be effective unless the National Industrial Recovery
Board approves or unless it shall fail to disapprove after thirty
(30) days' notice to it of intention to proceed with such action
in its original or modified form.
SECTION 6. (a) Subordinate to the Territorial Code Authority
established in Section 1 of this Article, there shall be constituted
County Code Authorities for those counties of the Territory, where
in the opinion of the National Industrial Recovery Board the
Territorial Code Authority will require assistance of a regional
group in its duties of investigation, fact-finding, education, and re-
search. Members of the County Code Authorities shall be elected
in a manner satisfactory to the National Industrial Recovery Board,
by the Trade at large in the county where they are to serve and
shall be truly representative of the Trade in that county.
(b) In addition to membership on the County Code Authority
as above provided, there may be one (1) member, without vote,
to be known as the Administration member, to be appointed by the
National Industrial Recovery Board to serve for such term as it
may specify.
SECTION 7. Powers and DutieR.--Subject to such rules and reg-
ulations as may be issued by the National Industrial Recovery
Board, the Territorial Code Authority shall have the following
powers and duties, in addition to those authorized by other pro-
visions of this Code:
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the Trade with the provisions of
the Act.
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of the Trade such information and
reports as are required for the administration of the Code. In addi-
tion to information required to be submitted to the Territorial Code
Authority, members of the Trade subject to this Code shall furnish
such statistical information as the National Industrial Recovery






165


Board may deem necessary for the purposes recited in Section 3 (a)
of the Act to such Federal and Territorial agencies as it may desig-
nate; provided that nothing in this Code shall relieve any member
of the Trade of any existing obligations to furnish reports to any
government agency. No individual report shall be disclosed to
any other member of the Trade or any other party except to such
other governmental agencies as may be directed by the National
Industrial Recovery Board.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Territorial
Code Authority of its duties or responsibilities under this Code and
that such trade associate ions and agencies shall at all times be sub-
ject to and comply with the provisions hereof.
(e) To make recommendations to the National Industrial Re-
covery Board for the coordination of the administration of this
Code and such other codes, if any, as may be related to or affect
members of the Trade.
(f) (1) It being found necessary in order to support the adminis-
tration of this Code and to maintain the standards of fair competi-
tion established hereunder and to effectuate the policy of the Act, the
Territorial Code Authority is authorized:
a. To incur such reasonable obligations as are necessary and proper
for the foregoing purposes and to meet such obligations out of funds
which may be raised as hereina after provided and which shall be held
in trust for the purposes of the Code;
b. To submit to the National Industrial Recovery Board for its
approval, subject to such notice and opportunity to be heard as it
may deem necessary (1) an itemized budget of its estimated expenses
for the furagoing purposes, and (2) an equitable basis upon which
the funds nece-~s ry to support such budget shall be contrilbutedl by
lmembcri s of the Trade;
c. After such budget and basis of contribution have been approved
by the National Iidu:lt rial Recovery Board, to determine and obtain
equitable contribution as above set forth by all members of the Trade,
and to that end, if necessary, to institute legal proceedings thrrefor in
its own name.
(2) Each member of the Trade shall pay his or its equit:ible
contribution to the expenses of the maintenance of the Territorial
Code Authority, determined as hereinabove provided, and subject to
rules and regulations pertaining thereto issued by the National
Industrial Recovery Board. Only members of the Trade complying
with the Code and contributing to the expenses of its administration
as hereinabove provided, (unless duly exempted from making such
contributions,) shall be entitled to participate in the selection of
members of the Territorial Code Authority or to receive the benefits
of any of its voluntary activities or to make use of any emblem or
insignia of the National Recovery Administration.
(3) The Territorial Code Authority shall neither incur nor pay
any obligation substantially in excess of the amount thereof, as
estimated in its approved budget, and shall in no event exceed the
total amount contained in the approved budget, except upon ap-
proval of the National Industrial Recovery Board, and no subse-






166


quent budget shall contain any deficiency item for expenditures in
excess of prior budget estimates except those which the National
Industrial Recovery Board shall have so approved.
(g) To recommend to the National Industrial Recovery Board
any action or measures deemed advisable, including further fair
trade practice provisions to govern members of the Trade in their
relations with each other or with other trades/industries; measures
for industrial planning, and stabilization of employment; and
including modifications of this Code which shall become effective as
part hereof upon approval by the National Industrial Recovery
Board after such notice and hearing as it may specify.
(h) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
Codes as may be related to the Trade for the purpose of formulat-
ing fair trade practices to govern the relationships between employers
under this Code and under such other codes to the end that such
fair trade practices may be proposed to the National Industrial
Recovery Board as amendments to this Code and such other codes.
(i) To provide appropriate facilities for arbitration, and subject
to the approval of the National Industrial Recovery Board to pre-
scribe rules of procedure and rules to effect compliance with awards
and determinations.
(j) It shall create as an independent agency of the Territorial
Code Authority a Joint Industrial Board consisting of an equal
number of representatives of employers and employees, and an im-
partial chairman elected by the members of the Board, to deal with
all matters in the Code relating to hours, wages, and general labor
provisions. The designated employees' representatives shall be truly
representative of the employees of the Trade and chosen by such
employees. The membership of this Board shall be approved by the
National Industrial Recovery Board.
ARTICLE VII-UNFAIR TRADE PRACTICES
SECTION 1. Mi.representation.-No member of the Trade shall use
advertising, whether printed, radio, display, or bill-of-fare, or any
other form of publicity which is inaccurate in any material particu-
lar or misrepresents food, merchandise, service, credit terms, values,
or policies, and no member of the Trade shall use advertising and/or
selling methods which tend to deceive or mislead customers or pro-
spective customers.
SECTION 2. Free, Deals.-No member of the Trade shall offer or
give a free deal. The term free deal" as used in this paragraph
means a gift of free food, money, presents, advertising space, or
specimen meal, as an inducement to secure business; provided, how-
ever, that this section shall not be construed to prohibit free and
general distribution of articles for advertising purposes.
SECTION 3. Prizes and Premiums.-No member of the Trade shall
offer any prize or premium or gift in pursuance of a plan which
involves fraud or deception or lottery.
SECTION 4. Defamation.-No member of the Trade shall defame
a competitor by falsely imputing to him dishonorable conduct, in-
ability to perform contracts, questionable credit standing, or by other






167


false representation, or by falsely disparaging the grade or quality
of his goods.
SECTION 5. Breach of Contract.-No member of the Industry shall
maliciously induce or attempt to' induce, by any false or decept ive
means whatsoever, the breach of an existing contract between a com-
petitor and his source of supply or between a competitor and his
customer; or interfere with or obstruct the performance of any such
contractual relations with the purpose and effect of hampering,
injuring or embarrassing competitors in their business.
SECTION 6. Paymc/8s for Privilege of Working.-No employer
shall accept, nor shall he knowingly permit any of his employees
to accept money or gifts of any kind from an employee or prospec-
tive employee for the privilege of working or for any other advan-
tage.
ARTICLE VIII-'MODIFICATION

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of siubsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under Title I of said Act.
SECTION 2. Such of the provisions of this Code as are not required
to be included herein by the Act may, with the approval of the Na-
tional Indu.trial Recovery Board, 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 June 16,
1935.
ARTICLE IX--PICE INCREASES

Whereas the policy of the Act to increase real pur,.lniali *g power
will be made more difficult of con-lmmination if prices of goods and
services iincreaie as rapidly as wages, it is recognized that price in-
crease, except such as may be required to meet individual cost should
be delayed, and when made, such increases should so far as possible,
be limited to actual additional increases in the seller's costs.

ARTICLE X--MONOPOLIES, ETC.

No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.

ARTICLE XI-EFFECTIVE DATE

This Code shall become effective thirty (30) days after its approval
by the National Industrial Recovery Board.
Approved Code No. 553.
Registry No. 1728-31.




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