Code of fair competition for the domestic freight forwarding industry as approved on December 18, 1933 by President Roosevelt

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Title:
Code of fair competition for the domestic freight forwarding industry as approved on December 18, 1933 by President Roosevelt
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Domestic freight forwarding industry
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p. 175-184 : ; 24 cm.
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United States -- National Recovery Administration
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Freight forwarders -- Law and legislation -- United States   ( lcsh )
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Cover title.
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At head of title: National Recovery Administration.
General Note:
"Registry No. 1411-25."
General Note:
"Approved Code No. 162."

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University of Florida
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All applicable rights reserved by the source institution and holding location.
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Aproe CoeN.12Rgsr o 4l-2


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


DOMESTIC FREIGHT

FORWARDING INDUSTRY


AS APPROVED ON DECEMBER 18, 1933
BY
PRESIDENT ROOSEVELT


1. Executive Order
2. Letter of Transmittal
3. Code





UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


For sale by the Superintendent of Documents, Washington, D.C. Prico 5 cents


Approved Code No. 162


Registry No. 1411-25























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.
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Approved Code No. 162


CODE OF FAIR COMPETITION
FOR THE

DOMESTIC FREIGHT FORWARDING INDUSTRY

As Approved on December 18, 1933
BY
PRESIDENT ROOSEVELT





Executive Order

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 Domestic Freight Forwarding Industry,
and hearings having been held thereon, and the Administrator hav-
ing 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 perti-
nent provisions of title I of said act, and that the requirements of
clauses (1) and (2) of subsection (a) of section 3 of 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 the findings and approve the report and
recommendations 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,
Admin listrator.
THE WHITE HOUSE,
December 18, 1933.
26901-33 (175)













DECEMBER 6, 1933.
The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the
Domestic Freight Forwarding Industry of the United States, on
which the hearing was conducted in Washington on the 17th of
October 1933, in accordance with the provisions of the National
Industrial Recovery Act.

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS

Maximum hours for employees are established as follows: General
office clerks-forty (40) hours in any one week. Local station
and/or platform clerks or laborers-forty-eight (48) hours per week,
averaged over any six (6) weeks' period. No employee is permitted
to work more than twelve (12) days in any fourteen (14) day period.
No freight-house laborer to be paid at less than at the rate of forty
(400) cents per hour. Office boys, messengers, sorting or pulling
clerks to be paid at the rate of two dollars ($2.00) per day of eight
(8) hours. Junior Clerks to be paid at the rate of two dollars and
fifty cents ($2.50) per day of eight (8) hours. Senior Clerks to be
paid not less than at the rate of three dollars and seventy-five cents
($3.75) per day of eight (8) hours. All employees who work in
excess of ten (10) hours in any one day shall be paid time and one
half their normal hourly rate of pay for such excess.
Employment of any person under sixteen (16) years of age and
any one under eighteen years (18) of age at occupations hazardous
in nature or dangerous to health is prohibited.

ECONOMIC EFFECT OF THE CODE

The Domestic Freight Forwarding Industry represents an excep-
tion in the present depression in that it has added to its personnel
and expanded steadily from year to year. Its personnel increased
about, fifty-five (55%) percent from 1929 to July 1933. There was
a further increase in personnel of eighteen and four tenths (18.4%)
percent and an increase in pay roll of about fourteen and seven
tenths (14.7%) percent following compliance with the President's
Reemployment Agreement. As a result of this Code, these gains
will be consolidated and further improved.
Through the provisions of this Code the Industry has an oppor-
tunity to control the uneconomic practices and abuses previously
indulged in by the irresponsible units to the disadvantage of the sub-
stantial concerns in the Industry. The standardizing and publish-
ing of rates will remove the unfairness to shippers by reason of the
past practice of competitors giving more favorable transportation
costs through secret bargaining for lower rates.
(176)






177


FINDINGS

The 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 applicant group imposes no inequitable restrictions on
admission to membership therein, and is truly representative of the
Domestic Freight Forwarding Industry; and that
(c) The C'ode as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
From evidence adduced during this hearing and from recommen-
dations and reports of the various Advisory Boards, it is believed
that this Code as now proposed and revised is satisfactory to this
Industry, labor, the public, and this Administration. It is recom-
mended, therefore, that this Code, as herewith submitted, be
approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.












CODE OF FAIR COMPETITION


FOR THE
DOMESTIC FREIGHT FORWARDING INDUSTRY

ARTICLE I-PURPOSES

To effectuate the policies of Title I of the National Industrial
Recovery Act the following provisions are established as a Code
of Fair Competition for the Domestic Freight Forwarding In-
dustry, and shall be the standard of fair competition for this In-
dustry and shall be binding upon every member thereof.

ARTICLE II-DEFINITIONS
As used herein:
(a) The term "President" means the President of the United
States.
(b) The terms "Act and "Administrator mean, respectively, the
National Industrial Recovery Act and the Administrator of Title I
of said Act.
(c) The term Industry means and includes the business of con-
solidating, assembling, and domestic forwarding of freight.
(d) The term "employee includes any person engaged in the
Industry in any capacity receiving compensation for his services
irrespective of the nature or method of payment of such compen-
sation.
(e) The term "employer includes anyone by whom any such em-
ployee is compensated or employed.
(f) The term "member of the Industry includes anyone en-
gaged in the Industry either as an employer or on his own behalf.
(g) The term member of the Code includes any member of the
Industry who shall expressly assent to this Code.
(h) The term "effective date means the tenth day after this Code
shall have been approved by the President of the United States.
(i) Population for the puI)oses of this Code shall be determined
by reference to the 1930 Federal Census.

ARTICLE III-HouRS

1. No local station and or platform clerk or laborer shall be per-
mitted to work in excess of an average of forty-eight (48) hours
per week during any six (6) week period.
2. No general office clerks shall be permitted to work in excess
of forty (40) hours in any one week.
3. No employee shall be permitted to work more than twelve (12)
days in any fourteen (14) day period.
(ITS)






179


4. No employer shall knowingly engage any employee for any time
which when totaled with that already performed with another em-
ployer, or employers, exceeds the maximum permitted herein.
5. Any employer who does the work of an employee subject to the
provisions of this Article shall be subject to the provisions of this
Code as to hours of labor.
6. The provisions of this Article shall not apply to persons
employed as solicitors, or employed in an executive or managerial
capacity who earn not less than thirty dollars ($30.00) per week, in
cities of less than 250,000 population, or in cities of 250,000 popula-
tion or more, not less than thirty-five dollars ($35.00) per week.
ARrTICLE IV-WAGES

1. No freight house laborer shall be paid at less than the rate of
forty (40) cents per hour.
2. No office boy, messenger, sorting or pulling clerk shall be paid
less than at the rate of two dollars ($2.00) per day of eight (8) hours.
3. No Junior Clerk shall be paid less than at the rate of two dollars
and fifty cents ($2.50) per day of eight (8) hours.
4. No Senior Clerk shall be paid less than at the rate of three
dollars and seventy-five cents ($3.75) per day of eight (8) hours.
5. All employees who work more than ten (10) hours in any one
(1) day shall be paid one and one half (12) times their normal
hourly rate of pay for all time worked in excess of ten (10) hours
in any one (1) day.
6. This Article establishes a minimum rate of pay which shall
apply irrespective of whether an employee is actually compensated
on a time-rate, piece-work, or other basis.
7. Unless an equitable adjustment of all wages above minimum
has been made since June 16, 1933, there shall be such an equitable
adjustment, and to that end, within thirty (30) days from the
approval of this Code, the Code Authority shall submit for the
approval of the Administrator a proposal for adjustment in wages
above the minimum. Upon approval by the Administrator, after
such hearing as he may prescribe, such proposal shall become bind-
ing as a part of this Code; provided, however, in no event shall
hourly rates of pay be reduced.
8. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage of not less than 80% of the minimum established by this Code,
if the employer obtains from the State Authority designated by the
United States Department of Labor a certificate authorizing his
employment at such wages and for such hours as shall be stated in
the certificate. Each employer shall file with the Code Authority
a list of all such persons employed by him. The number of such
employees of any elfployer shall not exceed 5% of the total employees
of any such employer.
ARTICLE V-GENERAL LA.nor. PnoVISIONS

1. No person under sixteen (16) years of age shall be employed in
the Industry. No person under eighteen (18) years of age shall be






180


employed at operations or occupations which are hazardous in nature
or dangerous to health. The Code Authority shall submit to the
Administrator within thirty (30) days a list of such operations or
occupations. In any State an employer shall be deemed to have
complied with this provision as to age if he shall have on file a
certificate or permit duly issued by the Authority in such State
empowered to issue employment or age certificates or permits show-
ing that the employee is of the required age. ,l
2. In compliance with Section 7 (a) of the Act it is provided:
(a) Employees shall have the right to organize and bargain collec-
tively 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) 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.
8. No employer shall reclassify employees or duties of occupa-
tions performed for the purpose of defeating the provisions of the
Act or of this Code.
4. No provisions in this Code shall supersede any State or Federal
law which imposes more stringent requirements on employers as to
age of employees, wages, hours of work, or as to safety, health,
sanitary, or general working conditions, or insurance, or fire pro-
tection, than are imposed by this Code.
5. All employers shall post complete copies of this Code in con-
spicuous places accessible to employees.
6. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.

ARTICLE VI-ORGANIZATION

CODE AUTHORITY

A Code Authority is hereby constituted to cooperate with the
Administrator in the administration of this Code.
1. (a) The Board of Directors of the Domestic Freight Forwarding
Association, as a body, shall constitute the Code Authority, but shall
not number more than ten (10) voting members to which may be
added, if the Administrator so determines, an additional voting
representative from the members of the Industry who are not
members of the Domestic Freight Forwarding Association, the
method of whose selection shall be subject to the approval of the
Administrator.
(b) In addition to membership as above provided, there may
be not more than three (3) members, without vote, to be appointed
by the Administrator. Such members are to be appointed for terms
of from six (6) months to one (1) year. The terms of such mem-
bers shall be so arranged that they do not expire at the same time.






181


2. The Domestic Freight Forwarding At-sociation and any other
association directly or indirectly participating in the selection or
activities of the Code Authority shall (a) impo,. no inequitable
restrictions on membership, and (b) submit to the Adminitrator
true copies of articles of association, bylaws, regulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the Adminis-
trator may deem necessary to effectuate the purposes of the Act.
3. In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and there after if he shall find that the
Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an ap-
propriate modification in the method of selection of the Code
Authority, or any sub-Code Authority.
4. Members of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and to
participate in the selection of the member or members thereof by as-
senting to and complying with the requirements of this Code and
sustaining their reasonable share of the expenses of its administra-
tion. Such reasonable share of the expenses of the administration
shall be determined by the Code Authority, subject to review by the
Administrator, on the basis of volume of business and/or such other
factors as may be deemed equitable.
5. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent, or employee of the
Code Authority. Nor shall any member of the Code Authority be
liable to anyone for any action or omission to act under the Code,
except for his own willful misfeasance or nonfeasance.
6. No decision of the Code Authority shall be made without the
favorable vote of seventy percent (70%) of the members of the
Code Authority.

POWERS AND DUTIES OF THE CODE AUTHORITY

7. The Code Authority shall have the following powers and duties
to the extent permitted by the Act, subject to the right of the
Administrator, on review, to disapprove any action taken by the
Code Authority.
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accord-
ance with the powers herein granted, and to submit the same to
the Administrator for his approval, together with true copies of
any amendments or additions when made thereto, minutes of meet-
ings when held, and such other information as to its activities as
the Administrator may deem necessary to effect the purposes of
the Act..
(b) To obtain from members of the Industry reports in respect to
wages, hours of labor, conditions of employment, and other matters






182


pertinent thereto in order that the President may be kept informed
with respect to the observance of the Code, and to make such
reports available to the Administrator.
(c) To make recommendations to the Administrator for modifica-
tions of the Code.
(d) To receive complaints of violations of this Code, make
investigations thereof, provide hearings thereon and adjust such
complaints, and bring to the attention of the Administratod for
prosecution, recommendations, and information relative to unadjusted
violations.
(e) To use such trade associations and other agencies as it deems
roper for the carrying out of any of its activities provided for
erein and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(f) If the Administrator shall so require, to create as an agency
of the Code Authority, a Joint Industrial Relations Board, consist-
ing of an equal number of representatives of employers and
employees, and an impartial 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
Industry.
(g) To cooperate with the Administrator in regulating the use
of the N.R.A. Insignia solely by those employers who have agreed
to, and are complying with. this Code.
(h) To establish or designate an agency on planning and fair
practice which shall cooperate with the Code Authority in develop-
ing fair inter and intra trade practices, and the stabilization of
employment.
(i) The Code Authority shall, as soon as possible after the effec-
tive date hereof, appoint three (3) individuals who shall, jointly
with three (3) individuals appointed by any other Transportation
Code Authority, hear and determine, subject to the approval of the
Administrator, any question which may be referred to them by either
the Code Authority of this Code or any other Transportation Code
Authority for adjudication. In cas? such joint committee fails or
refuses to decide within ten (10) days any question submitted, the
matter shall be referred to the Administrator for final disposition.
8. In addition to the information required to be submitted to the
Code Authority as set forth in this Article there shall be furnished
to Government agencies such statistical information as the Admin-
istrator may deem necessary for the purposes recited in Section 3 (a)
of the National Industrial Recovery Act.

ARTICLE VII-RATES AND TARIFFS

1. The Code Authority shall appoint committees on rates, tariffs,
charges, and terminal rules and regulations for each freight service
movement. Each committee shall have full authority to investigate
into and make recommendations to the Code Authority for the par-






183


ticular freight service movement. Each of such committees shall
consist of representatives of each member of the Industry who con-
ducts business in all railroad freight association territories of the
United States and of representatives of each other member of the
Industry who operates in the particular freight service movement
under review.
If the Code Authority shall find that such rates and tariffs are
fair and reasonable and in the interest of fair competition and are
not more than the rates and tariffs of common carriers, prescribed
by or on file with the Interstate Commerce Commission for the same
or similar services, then such approved rates and tariffs shall become
binding on all members of the Industry on their effective date. Due
opportunity for a hearing, however, shall be afforded by the Code
Authority to dissenting members of the Code, who, prior to the ef-
fective date of the recommended rate, tariff or charge, file protest
thereon with the Code Authority.
All decisions and findings of the Code Authority in the matter
of rates, tariffs, charges, and terminal rules and regulations relating
thereto, shall be subject to the right of the Administrator on his own
motion or on complaint filed, to review, suspend or cancel any such
decision or finding.
ARTICLE VIII-REGISTRATION

Each member of the Industry shall within thirty (30) days after
the approval of this Code register with the Code Authority a list
of his officers, places of business, and freight service movements, and
submit evidence of compliance with this Code and such other con-
ditions as shall hereafter be approved by the President after such
notice and hearing as he shall prescribe. After the said expiration
of the said thirty (30) days, the conduct of such domestic freight
forwarding business without such registration with the Code Au-
thority, is declared an unfair competitive practice and in violation
of this Code.
AIATICLE IX-UNFAIR TRADE PRACTICES

1. For all purposes of the Code the acts described in this Article
shall constitute unfair practices. Any member of the Industry who
shall directly, or indirectly, through any officer, employee, agent, or
representative, knowingly use, employ, or permit to be employed, any
of such unfair practices shall be guilty of a violation of the Code.
(a) Assessing or collecting less than the rates or charges approved
under the terms of Article VII of this Code; or granting or allowing
any rebate or concession and/or using any subterfuge to defeat such
approved tariffs.
(b) Contracting, either in writing or orally, with any customer
for the transporting of merchandise, or giving service in relation to
the same, for any given period of time.
(c) Willful misrepresentation or defamation of another member's
services, methods, personal or financial standing.
(d) Giving, permitting to be given, or offering to give, anything
of value for the purpose of influencing or rewarding the action of any




UNIVERSITY OF FLORIDA

3 1262 08850 2868
184

employee or agent of another in relation to the business of the em-
ployer of such employee or the principal of such agent without the
knowledge of such employer or principal.
(e) Maliciously attempting to induce the breach of an existing con-
tract between a competitor and his employees; or willfully interfer-
ing with or obstructing performance of such contractual duties or
services.
2. Within ten (10) days from the effective date hereof, the Code
Authority shall prepare and submit to the Administrator, a list of
specific unfair competitive practices within the Industry. Upon ap-
proval thereof by the President after such notice and hearing thereon
as the Administrator may specify, such unfair competitive practices
so listed shall become parts of this Code.

ARTICLE X-GENERAL

1. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against, small enterprises.
2. 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 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 lim-
itation, 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.
3. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to be based upon application to the Administrator
and such notice and hearing as he shall specify, and to become effec-
tive on approval of the President.
4. This Code shall continue in effect for the period provided in the
Act, unless sooner terminated in accordance with the law in such case
made and provided. When so terminated all obligations and liabili-
ties under the Code shall cease.
5. This Code shall become effective upon the tenth day after this
Code shall have been approved by the President of the United
States.
Approved Code No. 162.
Registry No. 1411-25.




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