The President's reemployment agreement

MISSING IMAGE

Material Information

Title:
The President's reemployment agreement
Series Title:
Work materials ;
Physical Description:
ix leaves, 181 p., vi leaves : ; 27 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Hoover, H. Conrad
Publisher:
Office of National Recovery Administration, Division of Review, NRA Organization Studies Section
Place of Publication:
Washington, D.C.
Publication Date:

Subjects

Subjects / Keywords:
Unemployment -- United States   ( lcsh )
Economic policy   ( lcsh )
Genre:
federal government publication   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )

Notes

Bibliography:
Includes bibliographical references.
Statement of Responsibility:
by H. Conrad Hoover.
General Note:
"March 1936."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 020509752
oclc - 55215314
System ID:
AA00018847:00001

Full Text






THE PRESpIDENT'S &EMPLYBBBBB


HOOVER


HW.M.NO -924



















fssl



CLASS
BOOK__
DOw. MOM
















































































S.. :::.... ...
MAP,










.ii '. ;::
1,gc..











3 .3, *.


44:.:* ,.,







.. .. .....t















14_








i IViii~i














4










OFFICE OF NATIONAL RECOVERY ADMINISTRATION

DIVISION OF REVIEW














THE PRESIDENT'S REEMPLOYMENT AGREEMENT

By

H. Conrad Hoover


WORK MATERIALS # 82

















NRA ORGANIZATION STUDIES SECTION
MARCH, 1936















014 ICE 0i o t;.TIOr.t.L -JOOV AY .^,.; ISTVATI .1

DIVISIoA OF iAEVLvV




















T'i& FR.IS ::2"'ERS RiTJELOY; ._T AGihEiSNT

B-r

H. Conrad Hoover























NRA OF.G,,IZATI(F STUDIES SECTION
i.LA*C 1936


9819






By W. P. A.
A1 8L940J






FO.h;, O.ED


This study of "The resident'ss R,. Lm'loyment A irr' i-.nt" Twas r.r,,--.-red

by tar. H. ConrPd Hoivw r of' -he "7L. 02-r.izetifn Studies Sectij.n, i.xr.

William W. rardsley in charge,


ir-c A'reemc-ent v'as ent-,red into by ;iore than tlio million employers

as a sten in the redeployment program initiated by the National Industrial

Recovery Act. This ret.jrt treats of the Acreement in considerable detail,

including discussion of its development, the problems of its administration,

and the or.--nizetion establishn.d by the Yational Recovery Administration

to handle the administrative details. Certain conclusions and recom-

mendations, found in Chapter VII, and Arpendix I su--est areas for further

research,


In the fall of 1933, a census 7as taken v'hich showed striking response

on the part of industry 7,ith respect to en increase in employment and

payrolls, 'ork materials :o 83, "An Analisis of the PRA Census", by

Mr. Max Sasuly, sets forth in quantitative terms the extent of this

response.


At the back of this re-port wi'l be found a orief statement of the

studies undertaken by theDivision of Review.






L. C.. Marshall
Director, Division ofRevier




March 19, 1936


9819


- i -

















Digitized by the Internet Archive
in 2013











http://archive.org/details/presidentsr36unit






Tk:-L OQ' 2uCTENTS


Generi l Beview ....................................... viii
Introd,.ictior ............................................... ix
Chapter I, the Tresident's fmrlo.me t Fro *:- .. ................ 1
I. Administration For Incdustrial recoveryy ............... 1
A. Adminisitr-,tor For Industrial Recovery ........... 1
B. Special Industripl recoveryy joprd ............... 1
1. Origin ..................................... 1
2. Acts Ferformed Pertaining to the Fr.A ...... 1
3. Dissolution ?n'' Creation of the Nltional
Emer'-L ncv Council . . . . . . . . . ....
II. The Plan and its D2velonnment ......................... 2
A. District Of:ice2, -rr-rtment of Commerce ........ 3
P. The Pre,&ident' r`eeml]oy'aent Lducation Cmrnmppign 4
1 Bureru of Public ...elrtions, NIA ............ 4
' Loc l Ir. Committees ....................... 4
C. T'istrict 'wecov(--~r "oprds ........................ 5
D. Stte -',ecovery 73opr6 .. ........................... 5
E. St.te Recoverr Councils ......................... 6
F. The Preiont' s '.ee'lovment -lrive ............ 6
T1. he rlovwrsl Part ............. .......... 6
(a) :rnin1 pnc Securin- the Blue Eagle ... 6
(b) arriig a~d Securin{n the Blue Pgle in
Exceptionni. erses o..................... 7
(1) 'here a Code Hiad -'een SLabaitted .. 7
(2) 'here 8 Code J-id een Approved ... 7
(3) Cases of Incividual Hardship .... 8
2. The amloyeef.' I art ........................ 8
3. The Public's Part ............................. 8
0G. .A Tolicy oard .................................. 8
Chapter II, President's poe'. '1oT.ent .?i element ................. 9
I. Authority .......................................... 9
II. Origin ................................................. 9
III. Yature ............................................... 10
IV. Purpose .............................................. 11
A. To Bridge Time Needed to 3Bring I embers of Trades
and Industries Under Codes ...................... 11
B. To Eliminate 0 ild Labor ........................ 11
C. To Sprer-. urcsin orer ....................... 11
D. To Create Public Opirion ........................ 11
_'. To believe Unr'ir Competition -etvreen Interstate
and Intrastate ,nterorises ..................... 11
?. To Deternine Frobleis ol Trades and/or industries 12
G. T) Develop a .:1le or Stanc ird For Labor Conditions
in all Trades ano Industries in all Loclities
at about the same Time ............... ...12
H. To nrcrjnre '.en.bern o- T':, de an6 Industries For
Codes ............................................. 12
Co odes. ... ... . e. . . . . o. . e . . . . 1
I. To Persuade, Irdirectly, Industries to Suo:it Codesl2
J. To Ease Co-:petitive Inequalities 'Iet-eon Codified
and Uncodified Incustires ....................... 12


-ii-













V. Provisions oi the Arreement ............................. 12
VI. Fx p- 'lnitions an6 Inter' ret i n o: the r...r.-'nt ....... 15
A. r--rr'rr rh -l, Cnil6 Labor ............. ... ....... 15
1 Official :. lnttion ............................ 15
B. Far-.:rqii:h y2, 'ours Apolicrble to on-Ir-Listripl
workers end Store or Service Or-erptions ............ 15
1, OfficiJl Lxrnlanrtions ........................... 16
". -.m'lo*mnents Included in Pra,-gra.ph 12 (Von-Indus-
tripl '1 or':t rs) .................................. 16
3. i.vrlo'ietits Fot Inten-i(fd To ?e Coverud or F.- 16
4. Fxempotions .Froia axiiaum Hour Frovisions ...... 16
(a) -Fr. r-i-. F rrA ........... .......... .... 16
(b) Celencar Yer-hnd Inventories ............ 16
(c Fiscfl Yepi-Er6 Inventories ...... .......... 16
5. I'niiniram i',es Aponlicble to PrPrpr'h #2
E-'loyees . ..................................... 16
6, Store or Service C-ner.-tions ................... 16
C. Par:'Th 43 maximumm Hours Applicable to Industrial
workerss ................. .............................................. 17
1 Officipl JElX nations ......................... 17
<. todiiicttion of Parprrpin 3 ............ ........ 17
f3. fect of 'odificftion of Pare.raph =3 on
Si.-ers of *7 ................................... 17
4. .n'.op-'icnts '*ot Irtnderc to be Covered by P-A 17
5. E. x r-,tion. From.n axiim;i 'Hours Provisions ...... 17
6. extensions of the P.A .. ............ ............... .. 17
7. iinimuxa ;-E.es Anolic0ble to !rhrr. rprDh F3
r plorecs ................ ...................................... 18
D. ParrpF. =!, a.:.ployees -,e.iptcd from i'4miiiaum
Pours Provisions ......................................18
1. Offici pl Z -pl, nations ......................... 18
2. mploy.aents ?ot Intended to be Covered bv PRA 18
3. Erjergency maintenance nno eCnorir ork ......... 18
4. Executive 7nd 'an -:ers .. ........................ .. 18
5. xe'nptions from .axiia r-our Provisions ....... 18
(a) Calender Yepr-znd Inventories ............ 18
(b) _Iscal Yeer-rnd Inventories ................. 19
(c) .np.ers or ,:.ecutives Aeceiving !iore Than
A-. 90 per *eek .. ........... ................... 19
(U) rofess i-nl Persons ..................... iy
(e) To--rs Of Less Tnan 2500 Population ....... 19
(1) Owner Operpted Stores .................... 19
E. FuaragrniDh i.u, !ir:imuM r es Applicable to 1on-
Industrial orkeer.s .................................. 19
1. Official E plannations ......................... 19
C. E. imlo, ments to whichic h PaF ; ', -EA ..inimuna
'a7es Pre ArrlIiceable ........ ........................ .. 19
3. E-vlo-mnents Not Internded to oe Covered by F.A 19
4. L;centions to and Exemotions -roi PF.-A 'inirrmni
-.ne Provisions ............... 19
5. Inmedipte Trade Area .............. ................. 20


-iii-


9819
















F. -r'r.'r.i, =6, lv'inimam + -e! Applicable to Indus-
trial .or.kes 20
1. Official .A 1 1,nations ........................ 20
2. En lorinents to ,.nich arr-.'r:ph #4, PiaA iyinirUm
P,'U- Pre A. rlicpble ... .. . .. ... . .... 20
3. Employment not Intended to be Cov(red by 9iA 20
4. Exctotions to and Exenptions from FRA i.inimum
1C"L Provisions .......................... 20
5. Hourl, .5 te ................................. 20
G. Para.-rph --,7, Co:ipensption for ',nnlo'n..nt ........ 20
1. f/ici. xolpnrtiorTs end 3psic Interpretntionrc20
2. Fr.:-'ervation of a3je ->ifferentipls .......... 20
3. ProbleuAs ..I........................ ........... 21
H. Flr-r-T)h =S -ntisuoterfu:e .................... ...21
1. 0fficil xplpnrtion ........................ 21
I, For 'rF:*-. -9, Antir- )fiteerin. ................... 21
1. 0i.fici 1 -l'.rjipention ... .............. 22
2. Prices ....................... .............. 22
J. Faragrp-o. -10, Cooperatior ....................... 22
1. Officic-1 :.xDopn,,tion ......................... .22
T1. Fnrp rp-r h All, C e 0 C .... ......................... .
1. Official i.lrnption ........................ 22
L. Paragraph 7, ApproD ite Ajustments ......... 22
1. Ot ici?1 Lxpl nni+ on ......................... 22
2. L.elief to Government Contrpctors ............ 22
:J. Parp.Tpr'I 41,3, Ter ination of lnd Subotitution to
the FA ..............................................22
1. Official .--clrnation ........................ 23
'2. Effect of Appriovl ol a Coce upon Continuation
ox the riA .................................. 23
7. Paira-ippi jl+ j, ceptiuns ........................ 23
1. Ofificirl I}.:lI nation ........................ 224
VII. Duraction of the '.,,reea.cnt . ......................... .. 24
A. Ori inrl A rec nt................................. 24
B. lirst j!xtersion .................................. ?4
C. Second, ano l'irl .tension ........................ .25
D. Present Stptus ......................... ...............76
Chapter III, President's ht *,AG.eit A ie', ent policies ........ 27
I. Initial policiess ...................................... 27


II. PRA Policy 7o-rd .... .............. ....
A. Origin PnC -urtnose ...............
B. Or-anization .....................
C. Termination ......................
III. Blue '- 1e Division, Y-HA .............
A. Origin and Or,- P. Sections HanClinpo 7+A Policies ..
C. .,eorgenizatio ... ........ ........
D. Ter:.-iinPtio ......................
IV. Compliande Division, *xA .............
A. Origin and Blue Eagle 3ranch.....
B. Lpbor and Administrative Branches
C. Analysis Branch ............ .....
9819 B. Ter.iination ......................
-iv-


................
................
...............
....... .......I.
.I.II.I .I..I..I. II.I .i
.I.II.II.I.. ..i.ii.ii.i

. . .. .. . .
. . . .. .. . .
. .II. .I.. ..i. ii. ii.i
. . .l..l. . .

. .. . .. .















V. Yationrl Co imrlirnce 3oarf ............................... '9
A. Ori -in no FU pose ........................... .. '9
B. Orr-nization .9..................................... Z 9
C. Ti- r inio . . i . I . . . . . . . .b .I . . . i . .
C. T- rmirqtion .. . . . . .. . . . . .
VI. A6visor" Coancil, Coimolitnce Division, iT .............. SO
VII. CdoiTn1ince Co nciT, 'Tv- . .0
V Cd .p l c C i . . . . . . *. . . . . . . . "
VIII. Substitutions to the FHA ......... ..... .. .... 0
a. eutnority ..........................................
A.1 4un r ty .+ . . ., . . .i . + . .i . . .l . . .i . + . .I . .. 3
3O. lor iic-tions of Suo-titutions ..................... 1
C. Instructions for Suu iittin' Petitions +or
Substitutions ......................... ............ 31
1. If Code ws or ile +ith the Control Division
INKA .......................................... 31
2. If no Code had been Sub-itted to Control
Division .................. ...................................... 21'
?. Policies :'oll') e5 bby7 tne PFA rolicr 3o-oprd in
.onsi('erin- -etitionF7 for Suostitutions to the FLA 31
1. Fro.oosed Oode Frovi;io')-s VS. PIRA Provisions .... 31
2. Abr ence of Prol-osed Co, e P-rovisions ........... .... 31
3. functions of FL"A Policy onrd .. ................. 32
4. ProceCure ...................................... 32
5. reacline for Submitting Petitions for Sub-
stitutions .. . . . . ............................. 33
E. Nature of Substitution to the PaA and Industries
Affected ........................................... .... 33
F. Avolication of Aoproved SuO-.titutions .............. 34
G. Comments .................... ............. ............... .... 35
IX. Interpretations of the FziA ............................ ... 37
A. Spcciel Intcr-o:; etFtions Co .1.ittee .................. 37
B. ationel. Lalor Boprd ........... ........................ 37
C. PBA Policy o ...................................... 38
D. Interpretation Section, -'ue .1 Ie Divisior, IL-A ... 38
.X. Exceptions to the TL.!A (Cases oi' incivicul Hi rdshi).... 38
A. Authority .................................. .......... 38
B. Essential Inforation -;qired to be Suoinitted by
Petitioners .......... ............................... 39
'C. cetions section, lue L>r.le Division, 1%!vA ....... 40
1. cetlon~s Section, ..
1. Policies kollo-'ed oy r:'A in Considering
Petitions for .-ce-rtions to the PFA& ........... 41
2. Procedure vollo,'ed b., ihA in Considering
Petitions for r.,.e-Jtions to the --RA .............. 43
D. Local A' CopmTliance Sonrds ........................ 44
1. Petitions for Exce7tions Presented Uneer
Ppr--r r/,i -14, PPA ............................ 44
(a) Local TRA Comoli-,nce -oar6 reaulations for
Rnc~lin 0 P-.i.'- :rnoh 1`4 Petitions......... 45
2. Petitions for Permission to Operate Under Union
Contracts ..................... ................... 46
(a) Locl NSA Co rli,-nce -oard I.e.ulations for
Sr-' 1 in; ......... .. . . . .......... 46
State Co: mlip-Uarce -irectors ..................... 48
F. Volume and Disnosition ....................... ........ 49
_V--










*F.V

XI. Government Contrncts Dnr:' Loan ......................... 49
A. Awrrdif" of C-ovurnnment Contrvcts or Lunn- Contingent
upon Comrolinnce with FA or Approvcd Codes ........ 49
1. :ccutive Order *c # *....................... 49
2. Executive Order -3546 .................... ... 50
3. 1-ui lic 1.'or-ks Ac'iri istr-tion .n>. _--illations . .. 1
3. eliefto Government Contrctors .................. 51
I. Act Providing. kRelief to Government Contractors 52
XII. Enforcement of PRA .. ...... ... .... ........... .... 52
A. Public Opinion ,.............. ......................... 52
B. SurrEnder of the Blue agle........................ 53
C. "rpes of Violftions end Disposition ............... 54
Chapter IV, Administrption of the President's I-ee.roloymnent
A -'rLe ient ............................................ 56
I. Herd quarters (1asiiin :ton, C.) .. ........... ............ 56
A. 3lue E'--Ie Division, LJLA ............. ...............
1. Executive Section ............................. 6
2. necoverv Boards Section ...................... 56
3. C JmTl.-ints Section .... ........ ................. 56
4. Reor anization ............................... 56
5. ?- ocedure .................................... 57
6. Termination .. ... ...................................... 57
B. Co'-pliance Division, ILA ....................... 58
C. "tionl Cmliance oad, .A ....................58
D. Adjustment of PEA Co.iplrlints Pnc. Restur.-'tion of
B31ue E, le ............................ .. ... ...... 59
II. Field ................................................... 59
A. Local editionn Doards .................. ............. 59
3. Locil NLA Comnplince Boards ....................... 60
1. Origin ........... ......................................... .... 60
2. Purpose .............. .......................................... 60
3. Organization ................. ................ 61
4. Representation .... ............. .... .......... 61
b, Permanent Ci-airman ........................... 61
6. 7qture . ............. ............................... 62
7. Procedure for -andling Coraplaints of 1'on-
Comolio-ce with t?. FRA .. ..................... 62
8. Duration ..................................... 67
C. State 1FA Compliance Ditectors .................... 67
D. Re7iornl Admiristrption ......................... 68
1. origin ................. .. .. ............... .... 68
2. .e-,'i ons ...... ........... ..................... 68
3. auctions and Fo"-ers of regional Directors .. 69
,-. Regional Compliance Councils ................... 69
Chapter V, Results and Acco;mplishments ........................... 71
I. SiMnatories to the PIA .................................. 71
II. _m 'lovment and Favrolls ................................ 71
III. Comiplicnce . ........................................................ .... 71
Chapter VI, Problems ........................ . ................. 72
I. Policies and Interpretptions ............... 72
A. Delav in Develop-ient pno Pronulgation ............... 72
B. Fear that it was I: rossiole to Com-oly and St!,y in
Busiress ............ ............................................. .... 72
-vi-
9619





















'* '" ' .j












C. ,'err that the president :.iiht exercise the power
Dele'.--,ted under Section 10(o), YI-RA ................
E. 1pilure of Substitutions to the PRA to Define
I.Le:ahership r'ncd Emriclo7 es ..............................
E. Field ercies .. .. ........................................
F. Difficulty and Failure ofi' Field Aencies to
Establish Alleged Violptions ....... ....... .... ..
G. Centralization vs. Pocentralization of Enforcement .
H. Public Opinion Sole 3,sis of' Lnforceinent ...........
Chapter VII, Conclusions and 3.ecoinm.cr.ctions .....................

ADu endix I ...................................................


Appendix
Anpend ix
A_ C-nd ix
AD,'t ndix
Arnendix
Appendix
A.pendix

Apoendix
Appendix


:emorrndumn on ?ara;raph f-7 of the PRA ...........
Blue Ea-gle Division, M-RA ........ ....... ..........
Blue E.4le Division, NF.A heor-rnization ........
Compliance Divisionr, 1i1A ........................
National CorinliPnce Board ......................
PRA Substitutions .... ....... ... ...............
General Interpretations, Explanations, In-
structions and -.-ulir ; Pegerding the PPRA .........
Public Act '369 .......... .. ..... ...................
PRA Census-Thbulation by Stptes, Employment
and Payrolls; June, October, 1933...............


PAGE


72

73
73

74
74
74
75

76
77
80
85
87
94
96

132
177

179


-vii-


9819













Section 1 of the national Ind.-.-trial W-'cov.r Act declared
the existence of a national emer-wercv productive of ,"ide.vnresd unemploy-
ment end disorganization of' industry. One -'eapon adopted for cimbr,-tting
this emergency was the president's Recmplovrment A: as the PiiA, which was announced July 20, 19S3 as an arreemncent to be entered
into with the President I'v emnolovfrs with the primary objectives of
increasing emniolomLnt and at the same time expediting the code making
progrrm of the rational Recovery Ad:niristration. Tle A reeinont P"as
based on Section 4a of the Recovery Act end its provisions dealt mainly
with child labor, maximum hours arc' :,inimain wages. It did not include
any trade practice provisions.

This is P study of the Agreement, including its development
and its administration by 'EA.

PEA policies were developed anC ad.riir.istered by and through
the NRA Administrator, various boards and councils and field agencies.
The Agreement was entirely voluntary and. the only method of enforcing
compliance was the withdraw.nl of an employers right to use the emblem
adopted to symbolize participation in the Agreement the well-known
Blue Eagle.

Taking everything into consideration, the PRA was unquestionably
a success and undoubtedly accomplished as much if not more than was
expected of it. Nevertheless, it is possible that the earlier and more
definite development of policies with respect to the agreement, particu-
larly as to substitutions for certair provisions granted industries
and as to exceptions from full co:iplipnce with its termias, -'ould have
made it even more effective.


-viii-


GfiYE~l .L r.,Vi,,o









IfTTRODUCTION


In approving the National Industrial Recovery Act, (*) the
President of the United States and the 73d Congress declared the
existence of a National Emergency of widespread unemployment and dis-
organization of Industry, which burdened interstate and foreign com-
merce, affected the public welfare, and undermined the standards of
living of the American people. To combat the declared national
emergency, the NIRA authorized the President, in addition to other
broad powers, to enter into agreements with, and to approve voluntary
agreements between and among, persons engaged in a trade or industry,
labor organizations, and trade or industrial organizations, associa-
tions, or groups, relating to any trade or industry, if in his judg-
ment such agreements would aid in effectuating the policy of this
title with respect to transactions in or affecting interstate or
foreign com:ierce, and would be consistent with the requirements of
clause (2) of subsection (a) of section 3 for a code of fair competi-
tion. (NIRA, Title I, Section 4(a)

Although this report is intended to be limited to a discussion of
the President's Reemployment Agrenement, its origin, development, pro-
visions, interpretations, rulings, e:-.lanations, substitutions, ex-
ceptions, policies, administration, results and problems; it should be
kept in mind that "The President's I'eenployment Program" discussed in
Chapter I Pnd the Agreement itself were also instrumental in developing
and creating interest in Codes of Fair Competition on the part of the
Public and especially employers who later became subject to provisions
of approved Codes.


(*) (Public No. 67-73d Congress (H. R. 5755), approved on June,
16, 1933.


9819


-ix-







-1-


C',uu"I-2 I

T:2 P=2S1:17.70'S R R:.ULCY-?T -RCi.Li

AD;i, I:ISTVTIC- FOR I-TDVSJT.I-L L' -C-'

A.- ADi.J.LIS~Th.:TOR 1' Ix:_33L.L _____Y

Pursu-ln.t to authority provide in Title I, I"Ri, thC President, on
June 16, 1933, .-.pointed General hi-'_ Johnson to bj the ._0rrAnistr'itor for
Industrial R.Bcov..ry, and anuthlorized him on July 15, 19-3, subject to the
general approval of tho Snecial Industrial R.cov..-ry Board, to appoint the
necessary -ersonnel on a permanent basis;, to fix their compensation, and
to conduct such hea-ings and to exercise such, other flmctions as were
vested in the President by Title I, 3;I7A, excerpt the a- )rov.l of codes,
or mrnalin agr-....nents, or issuance of licenses, or exercise of powers con-
ferred in Section 3 (e), 6 (c), 8 (b), 9 and 10. (Executive Orders t6173
P nd j6205-A).

B. SPCIAL IDiST: IAL 30COVRY 30AD (June 16,'. 1933 to
Decemoer 18, 1933)

I. ORIGIN.-

Pursuant to. authori-ty povide- in Title I, ITIRA, the President, on
June 16, 1933, also appointeQ a S-ecial industrial R-ecovery boardd to be
comlrosed of the, follo7ipi1" liembors: Thle Secret-.r-: of Cormmerce, Chairman;
The Attorney General; the Secretary of the Interior; the Secretary of
ALriculture; the Secretary of Ljbor; *the Diro.ctor of the Budlet; the
Administrator for i-iductrial _Recovr,: and the Chi.rma.i of th Federal
Trade Commission.

2. ACTS ?ZCAL2D ?7 T71.11 TO TII pBA

Act.s performed b, the S-ecial Industrirl Tecovery Board pertaining
to the PA. were:..

(a) Ai---roVal of ITRA Bulletin '1- "Statement By the President of the
United States of America Outii-ing Policies of the -:TLA,", June 16, 1933.

(b) Voted that arra-n.,emnts b;e made for usin- tiie 26 District Offices
of the De-oartment of Commner-c' to act as ,e.io-:2l Rerepeentatives of .i.A.
(N1RA Release #40, dated July 10, 1S33)..

(c) A-v'rov-.l of ITFA Bu-lletin 13- "The Presicident's Reem.loyment
Progra:,i," July 20, 1933.

(d) Aproval of 1.?A Bulletin ;'5- "2e ulations On Procedure For'-
Local ITA Con-liance Boards", Septe,-:ber 12, 1933.

( -e) Aproval of, PA MBulletin L6- "Substituted Wages and Hours Pro-
visions of the PBA", October 14, 19.33

(f) It is also possible that the S.ecial Industrial Recover- Bo3ard
consiLered the 21 Basic Interorutations of the PRA, later incorporated
in ITRA Bulletin r4.




-2-


3. DISSOLUTIO1 (C?.~ATIOi OF T.:I -ATICIAL "' :c-ZCY CCU7CIL).

On December 18, 19Z, the i-resc'-eut ordered the.t .ll members of the
Suecie.l Industrial coverey 0.oa:'. in.~icuding the Attorne: General, the
Director: of t:he 2,udLet and tlie Ch.ir-: i.n of the Federal Trade Commission,
be de.eigna.ted d. included as members of the iNational Emergency Council,
cre-.ted on iTovember 17, 193.3, andC that all- functions and duties of said
3oar herearfter be exercised and -erformed by said Council. (Executive
Orders ,651. .i.nd q?6433-A).

II. T.C -L.: A-:D ITS D3VZLC9?IJ TT

In siur-inL. the 1-v (iTtion'l I.xirtrial Recovry Act) on June 16,
1933, the ?resiLent said:

"Thl.e first ;-?rt of th'e Act rrosoes to our inCiustry a .reae.t
s-)ontr.neous coo-eration to ,-ut millions of :.ien' b"c': to their
re- ul .r jobs this summer. The idea. is cimnily for crnloyers
to hire more men to do the ex:isting 'eorlt by recucin, the vork
hours of each .,an's neek a-.nC'- at the same time aPain,. a liv-
ing iwege for the shorter week.

It is a challenge to industry which has long insisted that,
given the right to act in unison, it co-.--ld io much for the
general -ooLd .-hich' has hitherto been unl?.-ful. From today it
ha..s that rit'ht. It is not only, the silc:cers vritnin trade
grou)s w.ho maj stand in tLie ).th of our cormnon -urose. In
a sense thee Jroups cor.T.)Jete vit- erch other, and. no single
industry, and no se-ra.te cluster of industries, can do this
job alone, for exactly the same reason that no single employer
c-n Co it rilo-.e. In other rords, -e can imagine such a thing
a.s a. slr.cl:-r industry.

This layv is also a. challenge to labor. workersrs, too, .are here
:iven a neo- chE'.rter of rights lon- sought cn& hitherto denied.
3B.t the' mow tnr.t the first move e-Dected by the .action is a
greatt cooperation of all em-,loyers, by one single mass action,
to iTprove the case of workers on a scale never attenrnntel. in
*-ny -nation. Industries can do this only if they have the
sup-p.ort of the whole public and especially of their ox.n ordersrs.

It is, further, a5 challenge to r.('.inistration. We are relaxing
some of the sa,.fegu-ards of the antitrust lavs. The -'ublic must be
protected,. against the abuses that led to their en-ctment, and to
this endi %re are -)utting in ',l-.ce of old principles of unchecked
conT-etition some new Government controls.

Finally, this lawv is a challen e to our whole --eople. There is
no po'.ver in Anerica.n that cr.n force. ac.ainst the a.blic will such
action as viw e require. But there is no grou, in America that can
withstand the force of an aroused -.ublic o-inion. This grert
coopern.tion can succeed only if those viwho bravely go forv-.rd to
restore jobs have aggressivee p-ublic support nrid those v.ho lag are
m.de to feel the full weight of publici c disc nroval."


9819




-3-


In antici-ation of Codes of F *i: C,..i petition "-rovi('.d for in the
Act, and the President's policy to put -oeonle b!ck to work, to eliminate
starvation ,at, es and to cor.or.e the e-;ccss capacity of i.iCdustrial -olants
resulting from mass -)roC.uctio' pricx soelrod far in a.dv.mce of v,',es,
employmn.:nt %nd _TYUrch.S": ", r, ? .o-.lc not in bvu.inss as well as
those engaged in a trade or inc:usti.r be'ean to buy pror.ucts and store
them in warehouses. T'.he raisin of vl;es and shortening: of working
hours inicr.-sod costs. Conmanieij, loc-lities and industries wore com-
-)ctin; for trade and labor. It was neces.a.r: to &ovelo-o a rule or
authoritative standard for labor conditions in all industry and all
localities at about the s-,me time. All.industries wore not orE:.fniz2d
into trade associations. .a-. aplyi;-i for codes wore not ready to re-
ceive them. Intrpstato commerce and industry corm-eted with interstate
commerce and industry. Immediate action -as inmerative.

At the outset it was7 a --i.rent th.t the -orocegs required in approving
codes which involved -rc-oration, submission and the holding of hearings
Yas not co-nducive to immediate action, at least six: wee'-s was required
to nut a major code through t'-e mill. It was indisiernscble to do some-
thing to a.vert a new collapse and crash. A shorter method was needed
to bridge the time involved in bringing industries under codes. To
bridge this gap and to exedite his riemnloyment program the President
offered to enter into an individual agre -):rent with each member of a
trade and/or industry which b.-cr me 1uo,-n as the President's Reermployment
Agreement (PRA).

A. DISTRICT OFFICES, D=A.Rl'7IT- OF C0'` C=.:C

On July 10, 1933 the Special Industrial Recovery Board voted that
arrangements be made to use the 26 District Offices of the Departmont
of Comhmerce as regional 1TRA representatives. ITA was to pay for extra
workz done by the District Offices on account of services rendered NRA
(NRA Release #40).

Managers of the De-partment of Commnerce District Offices were
called to Washington on July 11, 1933 by General Johnson for the pur-
nose of determining how they might best cooperate with TRA and to re-
ceive instructions by various iTRA officials regarding its plans,
policies and purposes.

According to liaison ciraulars addressed to District Offices by
L. H. Peebles, Liaison Officer, Bureau District Offices and iPA, the
functions of the District Offices relating to the PRA were:

(1) Receive signed PRA's and render daily reports to 1-RA as to
the number received and number of eraloyes cov red.

(2) Siply favorable iURA information to the local press, chambers
of commerce and other civic bodies.

(3) Submit to 1TRA all items of colorful publicity.

(4) Issue simultaneously to the press and to post offices.
Lists of 31ue Eagle employers in metropolitan ar_.s.


Q10 n




-4-


(5) Chec'. signed certificr-tes of Coom.litnce "ith lists of PRA
siMn.tori 3s.

(6) Subnit to j*siington etitiovs. for e::ce-:tions under Prrp.-
,-,l'C: j5 14, PRA.

(7) iArnishi ILA -.;it-i ne'-s stories or. P?iA ca.maijn -ev-lo-ments
in their loc"l areas, coiT?.-ints, l-bor tro'ule3 and loc. 1?A
editori-a 1s.

(0) Coo)erc.te with Loc.l --RA Ccrapliaence 3oards in en aCdvisory
ce..--.pcit; only. In no cse wVere they to issue arbitrary instructions
or lay Jo'.vn rules a.u re ulatioiis.

3. T?2 UYZSIDX'IS a2;2LOYCi:i3T DLCJCI .'AL CAiuAI&GU

1. BURu2AU OF PUBLIC ?CLATI&IS

With fewv exce-tions a l.w such .r-s thie IIRA, affection& long es-
taolis.ied practices, n-tio:'.riC.e in e ::t:%it, cnn-not be pdoquately en-
forced without ?.n aroused and -almost vuz:-iinous -ublic o"'.nion. Rosliz-
inz thi-, General JoLhnson soon fter his Ry'ointm-ert as Aclrninistrntor
of thec 171A ilrnned. nationwide eL.c-'tiona.l cm?si1n signednd to sneeCe
the r-turn-i of prosperity thiroL'.hittha e:-:nansion of consumer -)urch.asing
Tho'.'er in accordance with the 'rincin!is set .ortIh in the 1TI-A.

Under the su'-,crvision of i.ir. Chr-les S. Horher, c.ir-ctor of the
ne-Tly create. 3ureau of z-ubiic Reli.tions, 1-RA Pubiolic Relations Division,
the Preside-nt's ReIknloym.ent E2LCcation.l CCamaig7n was launched on
July 21, 1933, to ?rouse -ubjiic inter-t in the President's Recnmoloy-
ment Proram (IFA Re.lea.se ,75). Orc-..nization, s)eahers and press
divisions were set -c) un,..=r iezsrs. Fr-nk R. 'Jilson, Louis J. Aber
a.nd Robert St. Clair resv)ectively.

The ire -. thro-..-:hout the country clisl-" .C. -y)rominlently in their
columns the eimi, l-'.21s, information ar'. -.tte finished by 1IRA in press
releases. The radio was used e.xtensively, s-.ealtcrs Bure.us nero orgealiized,
shorts were--)repa.red -id fe.-tured on the screens of motion -icutre .nd
legitimate theatres, radio st-.'s an. co-.'s of s-ePUcfl's E-nealec. in every
'ossible way to the D).triotisin of the -eo-)le to su"port the President
in this Drive in -.uch the sam me riannr as they used in "-1utting across"
the Liberty Loan Driv.es .uring the Jorld W'ar.

2. LOCAL IT.s COiIJTT]2S

One of t&. first acts performed b, L..r. Homer as Director of the
ITURA 3ure--u of ioublic Relaticncs w-.s to organize Local 1iA Committees.
Over the si n-.ture of General Johnsou t.l ramss v'ere s-mnt to the
President's of Chambers cf Conmicrce or other leading civic organizations
in cities 10,000 pop-)ulations and over, -'.nd letters in cases of cities
under 10,000 requesting" them to tako t.ie initiative immediately in
organizing campaign committees in their res-ective communities to be
composed of the Mayor, the official heads of the C'a_ mber of Commerce,
Clearing House Association, Rotary, Ki,.anis, Lions, Retail I.Lerchants',


9819







Fcdcratizn of L-.bor. Advertis'i:; Club, F, F.-ration of '7omen's Clubs,
Welfare societies, Ministeria.l A-z.ociation, Real 7.tatc Arsoci-tion,
and -ny other civic or,5.nization which in their ju'.-ei.i.nt was roprc-
sentntivc of -nfy inmrotant element ir- the oconoiaic life of e.-chh co.--
munity.

These commaniCations stated that the fu:ictions of the commrlttces
were to direct a camar.iin of education and oV.l-iiz tion u,,hich was tc
be a part of a national movement to specd the return of prosperity
through the mansioniin of consl,'r urcpsinj power in accordance with
the principles set forth in the 1IIRA.

According to a report made by Mr. Horner, Local ITBA Committees
were established in some 6,220 towns and cities and ho estimated that
there wore a-ppro:.-iinV.tely 1,500,000 volunteer workers in the field ',orh-
ing under their supervision.

C. DISTRICT RCO0VTiY BOARDS

On July 20, 1933, General Johnson and the Special Industrial
>',,vory Board authorized the creation of one district recovery board
of seven members to be a-ppointed by the Prosid.ent for each-of. the 26
districts of the Deoartment of Commerce, to consider, advice, and re-
port to IPRA on the progress of the execution of NIRA, and tc pass upon
such matters as were referred to them for action by NRA., The mrriember-
ship of each District Rccov.-ry Board was to consist of one person pro-
minent in each manufacture, retail trade, wholesale trade, banking,
farming, labor, and social service who was willing to volunteer his
services without, compensation (iTRA Bulletin ,A3). The local District
Managers of the D::partment of Cbm.ncrce served as Secretaries to the
Boards.

D. STATE R-COV7RY BOAF.S

On July- 20, 1933, General Johnson and the Special Industrial
Recovery Board announced the creation for each state of a state
Recovery Board of nine members to be appointed by the President.
The board was to serve without compensation and it ;was authorized to
select a chairman and secretary from among its own members (NTRA
Bulletin 73). '

The membenshins were to be truly representative of commercial, in-
dustrial, labor, and civic interests of each state. The State"'Recovery
Boards were to advise and report upon the execution of NIRA in their
states and to receive and'act upon all matters referred to them by NRA
or by their district boards. On August 9, 1933 General Johnson sent a
telegram to the governor of each state submitting the names of those
drafted by the President to serve as members of the State Board and re-
questing the governorss to organize the Boards and allocate a section of
the state to each of the nine members. Ml.etings of State Recovery
Boards were subject to call of the governor At the first meeting each
Board was authorized to decide upon and promraulgate-its own rules and
procedure




9819


-5-




-6-


7. STATE RECOVERY COUITICILS

A State Recovery Council was also created .by General Johnlmson and
the Soocial Industrial Recovery Board on July 20, 1933, to be organized
by and to serve in cooperation vith e,.ch State Recovery Board. Upon
application to the -State Recovery Soa.r( by any state labor, manilfactur-
ing, trade, civic, social-service or welfare association, organization,
or club, the .residing officer thereof was entitled, ex officio, to
membership on the State Recovery Covuncil. The function of the council
was to recommend to the board any necessary action with regard to the
organiz-tion -resided over by any memfber of the council, to request
the services of the Board and of 1TRA in any proper matter to the end
of -orfecting and' strengthening any such organization, and to assist
to make available to the Administration of NYA the services of any such
organization (IRA Bulletin s3).

F. THE PRSSID IT' S R3ZL?.LOY:.IT DRIVE

General Johnson on July 22, 1933 announced the -a;ointment. of
General Thomas S. Hamnond, as Executive Director of the President's
Reemployment Program, to carry out. th- ReenToloyment Program, and to
act as liaison: between. the. Administr tor and the Public in interoerting
ITRA policies regarding Re3r-oloyment Acreements with industries and
trqdos (URA Release ,-91). .

The Presidet ts Reemnloyment Drive wr.s .nnotnced on July 20, 1933
by Gen3ra.l Johnson anc'. the S-)ecial Industrial Recovery Board to be
launched on July 27, 1933 (lIRA Bulletin ;;3 and -r4).

1. TIE ELOY RS' PART

Daring the three days beginning J'.ly 27, 1933, letter carriers del-
ivered at each -lace of business, where three or more persons vore em-
ployed, a message from the President, accompanied by a copy of the form
for the PEA; a certificate of comroliance form, and a return envelop
addressed to the district office of the Derartment of Commerce. Any such
employer failing. to receive this material by August 29, 1933 could obtain
it from his- loc.l )ostmaster. On July 29, 1933 it was announced that
employers of fewer than three -ersons could obtain PRA forms at their
local oost offices (WRA Release JL130).

Because the first distribution of PRA forms- through the post .offices
was limited to businesses ermpiloying more than three persons, employers
of less than three persons and even the local "-ostmasters were of the
opinion that small employers riere not e.-,ected to cooperate in the Pre-
sidentls Reemployment Program. This led to confusion and tended to delay',
the signing of the Agreements as some -ostmasters at first refused to
furnish PRA forms to small employers who aolied for them.

(a) Earning .And Securing The Blue -a;le

The Emp.loyers' "part was to act at once and earn the 1TPA Blue Eagle
Insignia and display at his place of business by taking the following
stops:


9819







1. Sign the PA


2. Shorten the hours of fctora wo'orirs to ; hours- per week,
and of all other eomloyees to 40 hours ,er ..,'-k (P'A ?P-r'gr-i'Ahs *,' to #4).

3. Raise :-.es. (P-A P- r-- :.. Lls to i7)

4. Refuse to eomloy Child Labor (FRA Paragra.ih 1L). -

5. Cooperate with the Fresidr:-.-.t (PRA Pr.g.:a-ohs #8 to 'FI3).

6. Mail the signed Agreement to the District Office of the De-part-
ment of Commerce in the firn' :.d addclressed envelope provided.

7. Put the Aro'meinont into effect.

8. Sign the Certificate of Conmpliance provided.

9. Deliver the signed Certificate of Compliance to the local
post office arind receive the 3lue E?-s:l,. the official RITA insignia
awarded to om)loyers cooperating wfth lipsA for display to the Public
in order that ehy could determine who were or were not cooperating.

(b) Earni.ma And Securing The Blue Eagle in Exceptional Cases

(1) 71h.re a Code Had Been Submitted (Paragraph .Il3, PRA) -

If a whole .trade or industry 'ias. unable to live up to the ;
PRA, h m eonployer fwas instructed to get together at once, with
other employers in the trade or industry and, in a group, submit
a code of fair competition to 1BA.. Since it took some time for a
code to be approved after its suumittal, such groups were permitted
to petition MRA to substitute wae and hour provisions of the sub-
mitted code for PRAI w'.-e and hour -provisions. In the event iTA
elected to ao-pprove such substitutions the employer was allowed to
put the substituted provisions into effect and he was instructed
to add to his Certificate of Com'liance the following clause:
"To the extent of ITRA consent as announced, we have complied with
the PRtA by complying with the substituted provisions of the code
submitted by the ___ Trade/Industry." If a substitution to the
PRA. was consented to by ITA, after the ermloyer had put the PRA
into effect and obtained the Blue Eagle, he was allowed to operate
under the substitution without signing another Certificate of
Compliance.

(2) Where a Code Had Been Aporoved --

If a code of fair comnoctition had been approved by the Presi-
dent, which was applicable to the employers' business, he was not
required to sign the PRA to obtain the Blue Eagle, but he should
sign a Certificate of Coimrliance, ding to it the following state-
ment: "We have complied with the ooerative provisions of the Code
for the Trade/Industry.


9819





-8-


(3) Cases Of Individual Fardshin -

(See Oh. II, Section 6-I1T, P.-rer-.-h -`14, Excentions, A-pendix G
Par?.a rarh Y14, PEA; CIhanter III "P-RA Policies Excentions To
Tnei pay'.)
2. THE EziLOYEZS' PART

The em:,loyoes' o-rt 'as to .0o their best on the job and to coo-erate
with RA c..nd eT-jloyers in -,erceful adjustment of O"ifferences, anr.. to
share with thE vhemployed the benefits of the program.

3. THE iKtBLIC.S PART

The -.ublicls ;)art and es-ecially the -art of women (who control
the bbulk of buying) was to sr:)-.)ort all those emn-ioyers and enrmloyees
who did their -arts to )ut breadwinners b-'ch to .or';. An K'RA Consmners1
badge of cooper ticmn was printed and ?.7-rdeC. to e-very consumer in the
U. S. who cooperated in the- President's ReerTriloyrnent Drive and signed
the following statement of cooerption; "I will coo)erte in reenoloy-
ment by smaiortin; .nd .)'.tronizing ei.;loyers and worlcers who are members
of 1TRA."

G. PRA POLICY BOAPL

A PA Policy Board was a.,.i'.ointod orn Auu-.At7, 1933 by the Admnin-
istr:.tor of 7T2A to .(i) correlate thn. -'olicies pursued in General
Harmmond's PA Adm;iinistra.tive anM Mr. Hornert's Educational Campaign,
(2) consider and re-ort to the lTa.tional Recovery A(Ininistrator upon
petitions for substitutions to the PA, and (3) tissue all A inter-
pretations (See "PEIA Policy Bo?.rU'd" P_: Policies, Chapter III.)


9919





-9-


*. CI:A?T:::L II

PiEGS ID:; T' S "., ;, -Ln I :'T A Fr; ,. T

I. AUTHOIr.iY

Sectic-i 4(a), Title I of the 1:rtionr! Iidustria! Recovery Act
(Public io. 37-73e. Con-re'.'- ) sta.tcs:

"The Presi.rldnt is authorized to enter :'nto Pcree cents 7ith,
nid to n) )rove voluntary r- r.- o >ts bet.-een and :-,-on ', persons
eu:-.;ed in a trade or industry, ]robor r.',-'nzattons, and
trtzd1 *or in-ustrial or, nizations, 2ssociationls or ;rou)'s,
relatin.l to any tr.'ie or industr-, if h is ju!l,,ment such agree-
aent will aid in effectu.tin-7 the oolic7 of this title yith rev
aspect to transactions in or z- ectin interstate or foreign com-
m3erce', nd. IvTll be consistent r-ith tha renluir+ene:-ts of clause (2)
of subsucticn (a) of section 3 for code of fair cornpctition."

II. OWIGL:

"Oni the night of July 10, the Idustrial Advisory Board held
a joint neetin2 with the Lp.oor a-nd Consizier BoarsIs. The subject
of discussion wras labor provisions of a:i energenc-r faster blanket
Code,

Consideroible discussion e sued as to the hours an ''p.ges that
T70ulc. be equitable under an ener.?:e-ncc master hbladket code. After
several hours discussion in the general :meeting it ,was decided
thet a sub-cominittee retire to an adjonini roon and consider the
matter p.nd re'-ort ba.c: to the '.-ener!- co:..ittee. On this sub-
coii.iittee vere a'-.ointe& "'h. 'erard Sio-e andL .r. Alfred P. sloan,
Jr., of the Industrial uviisor" 3oa.r', :'r. Tillir,- Green and Dr.
'Leo "Jolnan. of the Labor -.r0 -., an& ?:rs. ChErles C. : unsey of the
Consu-,ers 3oarc.

The sub-commrittee rep-)orted baci to the -enierrl cojvnittee
asserfoled. the follo-in,7 su.:jested provisio'-s:

1. Tor the e ier,-encv period no minors under 16 years of age.

2. I.Txinum 40 hours for stores, banks and -.l office erDloyees,
public utilities other than trans-orta,.tiGn (soue mentionn was made
of railroad clerks exce-ot those having agreements), salesmen, ex-
cepting executives and traveling salesnen. Iini7inun 7a-e $15.00
per 'tee':. Distinction -ii,:ht be nade accord iniv to the size and
*local itr of the co.inmity.

3. IIanu-_actur ing industries 35 hours -er 7eel in the 13 "eek
perioU, with the ri/;ht to wor5; a maximum of 40 hours in n.:,- 4
reeks of 'that oeriodi, ando not iore than 8 hours of any one day in
an- onie week.


9819




-10-


4. -i-i.ium- :.'m.:e for unsl-illue6.. At first this -ras recommended
as "ollo-'s: 45 cents .by the La'.or Co:!Tittee; the Industrial
Com-iittee thought there should be .r, distinction between men and
ooen 40 cents for ;7en rind 32 for 0or:en. This ur.s later agreed
upon b-- the coTibine.d ro'as .s Ps .'nini..nLi of 40 cents for every
body without distinction os to se::.

Considerable discussion e tsue.. ns to certain phases of the
recom--Lend,',.tions of the su'j-con-iittee, p.articun--lr (a) on the
economic necessity of some distinction in -ages as between male
and fe ile labor, (b) some mention as to the necessity of regional
dif.ere:.ces, and (c) certain discussion bearing on the need of
reasonable tine to rearrange schedules.

Following; these general discussions the provisions .s outlined
above -ere finally found to be acce-table to all of the Boards.

On the question as to whetherr or not the so-called 'blanket
code' rith its attendant )lanI of crJfm.jijn as it had been outlined
by Genierl.l Johnson at the norninij session sho-_Ild be sui)erim.Posed,
soi,,e meTbers both of the Industri?.l Advisorr Borrd and the Laoor
3oard ex-oressed doubts rs to *-:'ether this treatment 7as advisable.
However, it -;as the consensus of opinion that while our Board did
not iAndorse tne pln (as it vas oar understrndin7 that the General
had not requested froTm the 3or.-zds ai.n- definite recon lendation on
this .).rticulnr featuree, if the Tecover-v Adninistration decided
to go ahead and jut it into effect they '-)led.eedL their full coopera-
tion in nn effort to :ir&!e it o. success."*

Frc--i the above -nd con0sultntion 7ith various -RA officials it
a-ppears thv-.t General Johnson developed most of the provisions of the
PRA. Collaborr.,ti:-i -ith 'Gonerr-l Johnson in this task were Secretary of
Labor Perkins, Secretary- of Comi,.,rce -0on-er, Atto]-ner General Curiinirrs
and nossibil- other ne-ibers of the President's Cabinet in addition to
Hessrs. Gerard S-"o)e, Alfred P. Sloa:", Jr., 'Jillivz Greeni, Dr. Leo
Woman, Irs. Char.les C. Runse-, Don?,ld 2ichberj, aond Alvin Bror.m.

In a' radio address of July- 24, 1933, the President s.id, "This
Blanket ea.reenent crries the un n.i:ious ao-)rovrl of the three Boards
which I have appointed to advise in this, Boards re-oresentinv; the great
leaders in Labor, in Inausutry, and in Social Service."

III. iJATUFE

The President's Reemnlonen.t Agreenient 'was a voluntary agreement.
There .r-as no force used, unless public o-)inion and patriotism might be
considered E.s such, to co:iel anyone to sin the agreement. It was not
Law_ and no one was subject to its provisions unless they had signed.



Industrial Advisory Board rainutes of a joint neeting of the In-
dustrial, Labor, and Consuiaer Advisorr Doards, and Generlpi Johnson,
July 10, 1953.


9C19







It -as a ntersonrl .'/recr'",t 6etTeen tbe si ',Ler anu. tlie Preside it to
shorter hours of en.)loro,'nt and raise r.,i;es, 1:v'. so doing, to cooorate
in a natlon-',ide pro.-rm to rise ,.r es, crr-:2te and spri i d emn lo'Tlmnt
and thus increooe and sread purcari.,slA -o'.er. It has been eonorally
held bc the courts to be c.i/orce)ol6e oy ,an enTl.o-'c as a third party
beneficiary.

IV. PURPOSE

A, T. 3RI,-7 Ti:: .I:"-: TO :'ii1" I L;r'-Rs ?r r::LrS .^, ;TDUSTIS
UIDR CCI.3 0 7 V6 p I A GO-2TIQ

At the outset it vras et-)arent that the process required in approving
codes, authorized in Section 3 of the Act, Which involved orero.ration,
submission aind t, e holdin- of vie.'in;_s xw.s not conducive to imriediate
action. At least six ,"eeks T'ere required to put P. r.-jor code through
the mill. To avcrt a ne- collapse and crash in trndcs and industries,
it 'as imperative that a shorter plan be evolved. A preliminary step
in the plfn for industrial self-government was necessary.

3. TO ELI'iI:.ATE CHILD LA3OR

,'idesnread cut-throat competition with its resulting low prices
caused nanufafcturers and those en-'r' "ed in the trades to cut their costs
to the lov:est -oossible minimum. One method of lowering cQsts was the
use of child labor.

C. TO SPRpAD PURC!-ASt'1 PO.2R

By snrer-di: er.-loynent, reduci. -working hours, raising the
general level of 17'e. Incre1sin i cuneryloymrent.,. cutting wages and
greatly increase;,.: the wrorkin"' hours of those still work'-in7 drastically
curtailed purchasing: power.

D. TO CREATE PI"LIC OPI::TIG1

With few exceptions a law as broadI as the national Industrial Re-
cover, Act, affecting lonr established practices, nationwide in extent,
caiiot be adequately enforced without an aroused and Jalmost unanimous
public opinion.

'. TO RLLELIEV-',: UIFAIR C'].2TIOl ,,..TZ., PUhiLY I: TTASTAT Aim
ThnzRS:^.mT:] z:2P.'z'p w S

Inasmuch as the -orovisions of the Act limited enforcement of its
provisions to businesses en'aL:ed in or affecting interstate commerce,
the probleia of fitting ,-urely intrastate business into the President's
Emnergencv Reeimrol:oyent Program became one of paramount importance.. The
members of trades and/or industries engaged purely in intrastate commerce
were free to do more or less as they pleased unless state legislatures
amended state lawvis to conform to the National Industrial Recovery Act.

46. .


9819




-12-
F. TO DTErI IIIE FRC3BLEIS OF TRJ.LS AHD/OR IThDUSTRIES
3y establishin- .. ..ener1.., rule -nd ap--lyin ; d.iniyaun "**'es and
maxiimw hours to -I! trades ad industries, the Adiinistration, through
requests for e:-ceptions acco.rpanied by data to oubsta.itiate great and
unavoidable hard-ji-,. i'-.s -.ble to dcterlnine h.Ie specific -problems peculiar
to an ind4ivid-uL.l tr-ue or industry .

G. TO DEVELOP A IZUrL; O1 STA,:=AD 1'O1R LA3O0R CO:.DITIO:,S IN AJLL TRADES
Aiii' iI-DUSTiL'S n: ALL LOCALILJLS AT A3OU T-Z SAME TI!E

The code processs ?.'cqcm.ireL. too -iuch time to d.o this.

H. TO PREPARE it[E!EJS 0. T:ADE'S A:-D I:DUTSTRIES 2OR CODES

The provisions of eor1-l codes mib'-itted by trades eand industries
for approval indicated th]nt tlhe-, rero not yet ready to accent the nore
or less drastic changes required to fUf-ill the Pins of the Preside:it's
1Reem-lo,-T]ient Agreeriont. A l.r.-re number of trades -%nd industries dCid
not have asti.ell orgnize.'. trr.de asscciatious ."s had been ,resu-sosed.

I. TO .-RSUD. IiDIIC2LY IDUST--S TO SIUJIIT CODZS OF 'AIR
CQOT:"H TI O.1T

Paragraph WTo. 11, PRA states: "To coop)erate to the fullest extent
in having a code of fair competition sub::i.t-ed by his industr'r at the
earliest russible date and in any event before Se)tenber 1, 1933."
Paragraph I1o. 13, PRA states: "This rec:ie-.it shall cease.... if the
ITRA so elects, upon suibnission of a code to whichh the undersi.gned is
subject and substitution of anqy of its provisions for any of the terrs
of this agreement." The '7ane and hour provisions of the PA were more
drastic than Was conte;roTated for the codes. relief l y in the sub-
mission of codes, which enabled iRA to determine the -)roblenris peculiar
to a particular industry or trade.

J. TO 2ASE C'ipTIT-iIVz ILFUAUITIES 3-27 CODIFI-D grD
Iu:COFIFII:D IiD)USTi.IES

Unless something were done to persuade all trade and industries to
operate under certain mninir -.i wa-'es and maxir.iur.i hours at an .roximiately
the same tiTe, those required to o-)erate under the provisions of approv-
ed codes would be placed at a competitive disadvantage, because the
wage and hour provisions of the codes tended to increase their costs.

V. PROVISIONS 0 THE FPPESID-::T'S IE!-I LOYi;: T AG- EilI.T:

The provision of the a'reeinent in full, as originally announced,
follows:

"During the period of, the *Presidet It's eTierency redeployment drive,
that is to say, from August 1 to December 31, 1933, or to anir earlier
date of approval of a Code of 7air Competition to whichh lie is subject,
the undersigned hereby agrees-'ith the Presie--nt as follows:

(1) After Au7ust 31, 1.933, not to e6m-oloy -xiy person under 10
years of age, e-:ce-t -'"hliat, erso.is bet-,een 14 -nid 16 mny 'e emoloyed


9819







(but no-t in nnufcurin; or nechaiiic 1 industries) for not to e.':ceod
3 hours ier ,-,/r .ind those hours beten 7 a.n. and 7 n.u. in such vorh:
rs -rill not interfere with hovirs o.' d:'y s;,i"ol.,
1
(2) ;'ot to ,ork "i counting :, clerical, ba.ll'..', office, ser-
vice, or sales erirnl"-o-:- (e.:ceit oUtsi(Le s.les'ien) in a:r store, office,
department, stablishncnt, or public utility, or on my a automotive or
hors'e-dra~mn 'sas-sener, express, delivery, or freight service, or in
any other pl.ce or itann:er, for -lore than *.''D hours in .1"- 1 veel: and not
to reduce the hours of ay store or service oPern-.tion to below 52 hours
in any 1 ,,eekl, unless -such hours were le-s than 52 hour. per *-eel: be-
fore July 1, u, and in the latter case not to redcv'e suci hours at
all.

(3) 'ot to e-nTloy ".r.n- factory or mechanical vorler or artisan
iore then a i!xi-un week of 35 hours until Dece'-oer 31, 1933, but with
the ri.:ht to i-or! r- .i n","i.,e.v d ,ee of 40 hours for -ny 6 weeks within this
-oeriod; an-C. not to on)lotv an," worker more than 8 hours in any day.

(4) T' ximun hours l'i:'2d in the fore-oinng .ar7r '." lhs (2) and
(3) shall not ai--l .to eroloyees in establishments employin, not' more
than *t.vo -er.zons in tons of less than 2,500 population. which tomis, are
not -art of a lar-er trade area; nor .to registered p,ernacists or other
-rofessional persons employed in their profession; nor to omDloyees in a
manajerial or executive caoacity, .,,ho no- receive more 'han $35 'er t-reek;
nor to en-)loy-ees on ener;encyr maintenance and repair -ork; nor-to very
soecia.!-c,' ses here restrictions of hours of highly skilled workers on
continuous processes would unavoid.-bly reduce production but, in antry
suci special case, s.t least time and one third shall be paid for hours
worked in-excess of the maximuu'. Po-ulation for the Dur-ooses of this
Pgree.ient shall be deter!ineCd by reference to the 1930 Federal census.

(5) Trot to Tnr any of the classes of employees mentioned in para-
:;rn.h (2) less than $15 per ,eek in any city of over 500,000 population,
or in the i:ii.eli.te trade area of such city; nor less than $14.50 per
T-eek in any city of between :.30,000 and 500,000 population, or in the
immediate trade area of such city; nor less than $14 oer week in any
city- of between 250,000 and 500,000 : population,. or in the iineediate trade
eree of such city;,,- and in to-ms of less than 2,500 po;)ulation to increase
Ell 7a.;es by not less than.20 Derceit, providedd that this shall not re-
quire ,:, :es in e::cess of $12 per week.

(S) Fot to .,:,y any employee of the classes mentioned in paragraoh
S(5) less than 40 cents per hour unless the hourly rate for the s-:.e class
of "orL on July 15, 1D:2, 7as less than 40 cents -er houri in which latter
cpse not to pay less than the hourl- rate on:.July 15, 1929, r,-i.. in,no
ev.nt less than 30 cents per hour. It is agreed that.this para!ra)h
establishes a g-uarahteed minimum rate of pay reca-rdless of whether the
e:-oloyee is compensated on the basis of a tine rate or on a pieceeork:
performance.

(7) i7ot to reduce the co-iee.iation for e.1.loyr!.ent now in excess of
the minimum wc.;es hereby r -red to (notithstandin.:1 that the hours w7ork-
ed such emrploymient may be hereby relice.l) and- to increase the ay for


9819








such employ-.ent, b.y an equitable readjustment of eall -:C.r schedules.

(,-) lot to use nyr subterfuge to frustrate the spirit a-nd intent
of this agreeTe.-nt i'hich is, anong other things, to increase err)lo'-ient
b7 a universal covenant, to remove obstruction to corierce, and to
shorten hours a1nd to rise w-ales for the shorter -eel: to a living" basis.

(9) 1lot to increase the price of any nerehandise sold after the
late hereof over the rice on Julr 1, 1953, by :lore tha: is made nec-
essr:r-- ";r a.ctuaJ. increases in -)roductio.-, rela.cene.it, or invoice costs
of ne-r-cha-.idise, or by ta::xes or other costs resulting: fro' action te2:en
3ursusnt to the A-ricultui'rp.l Adjustlient Act, since J-uly 1, 193C, oand,
in setting such price increases, to .sive full -ei .ht to-probable in-
crensesin sales volum-e .anL. to refrain from thakin'- )rofiteering ac'vant-
age of the .consiuming ruolic.

(.10) To su)-Dort and patronize establishments 7hich also have
signed this agreement ani- are listed as -ie3.ibers of '. 2.. A.
nationall Recovery Adi.inistration).

(ii) To cooperate to the fullest e::tent in having a Code of Fair
Co;:rmetition submitted by his industr-" at the earliest possible date,
and in anr event before September 1, 1935.

(12) Where, before June 13, "1933, the undersi.gned had contracted
to purchase r:oods at a fix::ed -orice for delivery during the -oeriod of
this a.-,reenent, the undersigned rill r ice an an))roo.)rite -.djustnent of
said fixed -.rice to rieet an.- increase in cost ca.usea 0"b the seller
having: si-nedi this President's Reerrm.loy.ient Agr-ee"-ent or having ; become
bound b.- an:Code of Fair Conm)etition ap )roved '-r the President.

(IS) This P?reeient shall cease u')on f iarovnl b the President of
.a code to nhich the undersigned is subject; or, if the -.nr.A. so elects,
upon. submission of a code to rhich the undersigned is subject and sub-
stitution of any of its provisions for a,.ny of the terns of this agree-
nent.

(14) It is agreed that any person r7ho ishlies to do his part in
the Preside.at's ree'nilonent drive b; si;nin.: this acre: c-it, but rho
asserts that so-ie -oartical.ar provision hereof, because of oculiar cir-
canistances, -il1l create great and unavoiia..ble hardshi), la obtain the
benefits hereof by si.-nin.- this a.greea.ient and )uttin; it into effect and
then, in a petition an)rovel by a re-,resontative trade association of
his indclustry, .or other representative or.ganization designated by ,..,A. ,
may apoly-.r for a stry of such provision p)endin-: a summary investigation
by ..A. if he agrees in such apx'lication to a.bide by the decision of
such investigation. This n.a'ree-ent is entered into mursuarnt to section
4(a) of the iiational Industrial Recovery Act andl subject to all1 the terns
and conditions required by sections 7(a,-) and 10(b) of tht act.


9819









(Sicn here) IN.. I.. . . . . . . . 0

( o o .. . . . . .
(Of:''iciol position)

(Virr:i .nd corporation nrume)

(Inindustrr or trodr)

(Tlh oer of eii ,lcecos .at the date of sicnin.;)

S i 0 0 . .
(Street)

* S S S S J S . S S S S S S S S J
(To 'n or city) (Sta.te) *


VI. ZXPIALATIo0fS A10 D L:1.?..H.u2TTI01:S OF TIM AGfl-1I "lT

A. PARAGRAPH 1., CHILD LABOR

(1) After August,31, 1933, not to employ ,ny person under 16 years
of age, except that p-ersons bet'7een 14 and 16 :in,- be emi)oyed (but not
in manufacturin. or mechanical industries) for not to exceed 3 hours per
day aii those hours bet-een 7 a.m. ,n-d. 7 p.m. in such -or]-: as will not
interfere rith hours of d1ay school.**

3B." PAPRC-RAPH :;-2_ _IURS APLIC2L.L r0 :;Oii-I:.JU3T.IAL 7O?,L.ES
AiD STO1'OE OR SERaVIC_ OPEPTIOiS

(2) -Tot to work any accouiting, clerical, baking, office, service,
or sales ernalo3'ees exceptt outside* salesmen) in aaw store,
office, depart ieit, esta'lishnent, or public utility, or on
ayi automotive or horse-ciran-r passe:-ir, exoress, delivery,


(*) In discussing belo'7 the provisios -of the A:rceient, the- are
first presented in their original for'i, followreU by a swunrn ; of
the provisions, explanations ani interpretations in --hich re-
ferences are made to an elaborate compilation of all available
inter-oretations, exolanations, instructions and rulin-s regprd-
ing the r>greement which will be found in the ao)enLix.


(i") O-rmrCIAL 2I uL;ATI01 See "Partr-rph -`1, PRA," Appeni:.: "G".


9819


.Doted a .






-16-


or freight service, or in any otier place o'r 'lanvier, for more than
40 hours in an" 1 week and not to reduce the '-ours of any store or
service ojeratt.on- to below, 52 ho-irs' in an" 1 7eek, unless such
honrs were less than 52 hours per week before Julr 1, 1933, and in
the latter case. not to reduce such hours at all.

I. OFFICIAL EXPLANATIOI:S See "Paragraph #2, PRA", Appendix "G"

2. EMPLOYI-ETIT. INCLUDED I.-PARAGRAPH #2 (NOT-INDUSTRIAL WORKERS)

"Barbers, beauty parlor operators and employees, dish washers,
drivers, deliver'rmen, elevator operators, janitors, watchnmen, porters,
restaurant workers, filling station operators." (Basic Interoretation
#12, General Johnson, NRA Bulletin #74) iiaiitenance'forcus including
charwomen, window cleaners, etc. (Basic Inter-retation #18, General
Johnson, ,RA .Bulletin A#4) Shoe shine employees, .otato inspectors in
the cit'r or in warehouse, nri'vate dectives receiving not more than $35
per week emnnlored by a private agency, caddies emolo-re. by. golf clubs,
cemetery workers, non-agricultural emolorees of horse dealers.

3. E.PLOY]EIT i.TOT T ET.-DED TO BE CO'.RED BY PBRA- See Appendix "G"
and "Professional Occupations" Apendix "G".

4. EXELPTITONS FRO] I..AXTI.U' HOUR1 PROVISI01S

(a) Paragraph #4. PRA. Section "D". infra.

(b) Calendar Year-End Invent-ries

"Anyr enplover subject to the PRA may ei-rlo',r any employee,
during two consecutive weeks after the date hereof (December 16,
1933), anyr number of hours necessary to complete such inventory,
provided each employee so enoloyed is paid at least time and
one-half for all hours worked in excess of the maximum hours per
day or week specified for sucn emT-lovee by the PRA or approved
substitution." (National Gomoliance Board, Dece-riber 16, 1933)

(c) Fiscal Year-End Inventories

By unanimous vote, the Board (National Compliance Board)
instructed the Compliance Division to grant to petitioners
whose fiscal year-ends occur between now (January 9, 1934) and
May 1, 1934, exceptions allowing them to work their employees
in accordance with the provisions of the blanket exceptions
from the PRA. (National Compliance Board, January 9, 1934)

5. MII-ILU;,I WAGES APPLICABLE TO PARAGRAPH #2, PRA EI2LOYEES See
"Paragraph #5, PRA", Section "E" infra.

6. STORE OR SERVICE OPERATIONS

"The hours of an-'store or service operation may be reduced
below the minimum specified in Paragraph #2, PRA, if the reduction
is in accordance with a practice of seasonal reduction of hours
and does not result in reduction of the weekly pay of employees."
00Q1




-17-


(Basic Interpretation `7.-3, "rcne?',l Johnson, I-7U :i"ll.tin #I)

"The A-'eement iiraooies no limitation on the maximum ho',rs
of operation of a store or service." (Basic Interpretation 11,
General Joh ison, BRA 1- letin 4)

C. PA_ L. _AZ-" -,-. L_.Tij. H'rO:RS APLTCALZ TO I0iD;ST:(IAL WO ,ET1RS
(FACO2i_ 0-' IE-CC'IAkIC.;L. "70R1El OR ADIS~dr)

1" "(3) Mot to emlo-r -' foctorv or rlechinical ',ori:cr or
artisan nore than q. maaximnum week of 55 ho ir -mntil December 31,
193-, bit with the ril-ht to work a maximum T1eel. of 40 hours for
an-' 6 -'eelks within this period; and not to e!?loy7 an" v/or-er more
than 8 hours in nn. 1 da,." 1
1. OFFICIAL -L&Ar)LATIOlS See "F-ra-raoh -j3, P-A", Ap:endi:: "G".

3. *l.:ODIFICATIC" CF PA LAG-^APH 3

For the purpose of encoura1inn- emolovers to sign, the President on
October 3, 1933 modified -arazraph -r 3 of the AT'-ree-ent to read as
follows:

"Yot to employr any factory or mechanical worker or artisan
more than a rmaximun week of 35 hou-rs until December 31, 1933; and
not to emoloy anv worker more than 8 hours in n-r 1 da1-r." (Execu-
tive Ord.er 46304)

3. EFFECT OF0 MODIFICATION OF PARAGIPAPH 3 ON SIGITETRS OF PBA
"Signators of the PIk prior to October 1, 1933, oight to be
allowed to employ employees under paragraph 3 of the PRA (permitt-
in- 40 hours work p-er week where necessary) a total of six weeks
from the dates of their signatures of the P?A to the effective
dates of codes for their industries, and that those who signed
s.bseauent to October 1, 1933, should be restricted to the'35
hour week." nationall Cop-liance Board, Iliav 17, 1934)

4. EiPLOYiEi!TS 1OT I:!ZI1DED TO BE COVERED BY'P'A See Appendix "G"
and "Professional Occupations", Appendix "G".

5. EXEiPTIONS F.OM MALXIIJIU' HOUR. PROVIS0iTS

(a) Par.--r-.ih #4. PRA, See "D" infra.

(b) Calendar Year-End Inventories- See "Paragraph 42, PRA",
"B" sprora.

(c) Fiscal Year-End Ihventories See "Paragraph 2, PRA"
"B" surora.

6. EXTENSIOIS OF T:HE PRA See Executive Orders ',3515, December 19,
1933 and :5678, April 14, 1934


9819






-18-


7. MIlIlLTi AGES APPLICABLE TO PARAGRAPH 7-3 EIDLOYEES See "Paragraph
J6, PRA", "117" infra.

D. PARAGRAPH #4, Ei.PLOYERS EXEMPTED FRO. I.CAXIIFJI.i HOUR PROVISIONS

"11(4) The maximum hours fixed in the foregoing paragraphs
(2) and (3) shall not applyr to employees in establishmBnts employ-
ing not more than two persbns in towns of less than 2,500 poopula-
tion which towns are nbt part of a larger trade area; nor to regis-
tered pharmacists or other professional persons employed in their
profession; nor to employees in a managerial or executive capacity,
who now receive more than $35 per week; nor to employees on emerg-
ency maintenance and repair work; nor to very special cases where
restrictions of hours of highlyr skilled workers on continuous pro-
cesses would unavoidably reduce production bit, in any such special
case, at least time and one third shall be -oaid for hours worked in
excess of the maximum. Po-oulation for the purposes of this agree-
ment shallbe determined by reference to the 1930 Federal censuss"

1. OFFICIAL EXPLALTATIOI: See "Paragraph A,4, PRA", Appendix "G".

2. E IPLDYIET NOT INTEiDED TO'-BE COVERED PY PRA See Appendix "G"
and "Professional Occupations", Appendix "G".
3. Ei..RGEITCY MAI IITEAITCE AND .7 PAIR 70Ri -

"Hours worked in excess of the maximu-. by employees on
e!.ergency maintenance or repair work shall be paid at the rate of
time and one third." (Basic Interjretation #7, General Johnson,
I'JRA Bulletin #4),

4. EXECUTIVES AMD MANAGERS

"In the PRA it is provided that the maximum hours shall not
applir 'to employees in a managerial or executive capacity who now
receive more than $35,00 per week.' There are provisions in var-
ious codes excepting from the limitation upon hours of those des-
cribed as 'managers' or 'executives' and complaint has been re-
ceived that in many instances emolovees are classified as 'managers'
or 'executives' either for the purpose, or with the result, of ex-
empting them from limitations uoon hours. It has not been the in-
tention of the administration in approving such exceptions to pro-
vide for the exemption of any persons other than those who exercise
real managerial or executive authority, which persons are invested
with the responsibilities entirely different from those of the wage
earner and come within the class of the higher salaried employees.
It will be presumed- that no errploTee receiving less than $35.00 per
week will be classified as a 'manager' or 'executive' so as to be
exempt from any provision of an7r code regulating the maximum hours
of work permitted in a trade of industry." (General Johnson, October
13, 1933, release #1178)

5. EXEI.PTIOHS FROfM MAXIjMU HOUT PROVISIONS

(a) Calendar Year-End Inventories See "Paragraph #2, PRA",
"B" supra.
9819






(b) Fiscal Year-End Inventories See "Para"raoh -2, PRA",
"E" supra.

(c) inan-ers or ExecutILves Recei-'.'in- :,oro thrn $a5 Per Week

"The maximum hours fixed. in nracr:voh'3 ^ and. d53, PPA do not
apol- to an employee receiving more than $35 per week and '.,ho is
actin'- primarily, althou -"' not vPhollv, in a nana,:erial or executive
caa.citv."_ (iBasic Interporetation 015, General Johnson, -RA Bulletin
#4)

(d) Professional Persons
"The follo',in-. are included. among-, professional persons within
the meaning of pa-'qrarah #4, PHA: New:paper reporters, editorial
writers, rewrite .]En and other me fbers of editorial staffs, internes,
nurses, hospital technicians, research technicians." (Basic Inter-
-oretation J19, General Johnson-, IMA Dulletin '4)

(e) Towns Of Less Than 2500 Pop-ulationt

Certain eimployrers 'in towns of less than 2500 population--See Executive
Order -#6354, :#6710 and Administrative Order :#X-72.

(f) Owner-operated- Stores -' See Aopendix "G"

.. PARAGRAPH :5,-5, -iII..1 ?7AGCS APPLICABLE TO IT0OT-IiDUSTRAL 0ORCERS
(PAPRA^PH #2, E3.PLOYT:S)

"11(5) Not to pay an-,, of the classes of employees mentioned in
oaragraih (2) less than $15 per week in an' bity ok' over 500,000
oooulation, or in the immediate trade area of suchcity; nor less
than $14.50 per '-reel: in anr-,r city of between 250,000 and 500,000
population, or in the immediate trade area of.1'sich city; nor less
than $14 p-er week in anyr city of between 2,500 and 250,000 popula-
tion, or in the iimediate trade area of such- cit.t; and in towns. of
less than 2,500 population to increase all 'v.ages by not less than
20 percent, provided that this shall not reoLire 7a.-es in excess of
$12 per week."

1. OFFICIAL EXPLiATIO--S See "Paragraph ", PRA", 4Appendix "G".

2. EL,2LO.I 'iTS TO TTHICH PARAGRAPH F5, PRA UIITII..T: WAGE PROVISIONS
APPLICA3L, See "Paragraph 7r2", "B" supra.

-. :PLOYi-17TS 1OT TIW' -DED TO E-E COVERED BY P.RA See Appendix "G",
and "Professional Occupations", Appendix "G".

4. EXCEPTIONS TO AIM.D EiPTIOI'TS FTOU1 PRA HIiIIUP ,7AGE PROVISONS See
"Paragraph PI, PRA 'E..arEe.c- LIainten:amce and Reoair Work' and
'Exemotions froiu Maxiuamn Hour Provisions, "I sIXra; also see
'Apprentices', Part-time employees'. Su'bstitutions, and General
Explanations etc., A'endix "G".


9819





-20-
5. Ii D EDIATE TRADE AREA -
"IImmediate Trade Area is the area in -hich there is direct
retail competition. In case of question, the decision shall be
made bby the local chamber of coun.erce or similar organization sub-
ject to review by the State Recovery Board." (Basic Interpretation
#13, General Johnson, I7-A Bulletin #4)

F, PARAGRAPH j6, MINI:li WAGES APPLICABLE. TO INDUSTRIAL WORKERS
(PARAGRAPH #3, EMPLOYEES)

"(6) Not to pay any employee of the classes mentioned in
para-ra-h (3) less than 40 cents 3er hour unless the hourly rate for
the same class of work on July 15, 1929, wvas less than 40 cents per
hour, in which latter case not to pay less than the hourly rate on
July 15, 1929, and in no event less than 30 cents per hour. It is
agreed that this paragraph establishes a guaranteed minimum rate of
pay regardless of whether the employee is compensated on the basis
of a time rate or on a piecework performance."

1. OFFICIAL EXPLANATIO See "Paragraph #6, PRA", Appendix "G".

2. E,'IPLOYIEITTS TO '1HICH PARAGRAPH #6, PR.A iI.Ui. WAGE PROVISIONS ARE
APPLICABLE See "Paragraph 3"1, "B" saora.

3. EWPL0Y.1,E'.TS IJOT lITEIDED TO BE COVERED B3 PRA See Apoendix "*G"
and "Professional Occuoations", Apuencdix "GI".

4. EXCEPTIONS TO ANID EXEMPTIOTS F'ROI PRA MINIMU'i WAGE PROVISIONS See
"Paragraph #4, PRA 'Emergenc-r maintenance and Repair work' and
'Exemptions from Maximum Hour Provisions', "D" suora, also see
'Apprentices', 'Part-time employees', Substituti6ns and General
Exolenations etc. Appendix "GI".

5. HOURILY RATE See "Earnings", Appendix "G".

G. PARAGRAPH #7, COi.PEIISATIOIT FOR EiPLOYME1T

"(7) HTot to reduce the compensation for employment now in
excess of the minimum wages hereby agreed to (nfiotwithstanding that
the hours worked in s .ch eprolovment may be hereb-' reduced) and to
increase the pay for such employment by an equitable readjustment
of all pay schedules."

1. OFFICIAL EXPLAITATIONT AID BASIC IITTEPIETATIO1S See "Paragraph #7,
PRA", Appendix "G".

2. PRESERVATI011 OF WAGE DIFFERENTIALS

"Question: We have been asked whether Paragraph #7, PEA re-
quires an increase in wages all along the line above the minimum,
entirely apart from- shortening of hours. In other words, the ques-
tion is asked whether Paragraph #7, PRA requires a preservation, in
some degree at least, of wage differentials all the wa: Uo."1 (F. S.
Pollak, October 18, 1933) "Answer: Implication is that higher
wages should be adjusted by collective bargaining if possible to be
in line with increase in minimums." (D. R. Richberg, October 18, 1933

9819




*-" 1-


3. PR03 2LS

i.,any 'bbles rose s arose s resalt f P;,.'' r1-. ;,7, P1A in zc.-:,ite of
Basic Irnter)retations ,ol, v icooat in '7A TulIetin #i .
Sone i. .e of the res l .tin co If si n v.3s indicated in the followin excerpt
front the nin'ztes of i ;eetn- : of the i' .l-trial Aiiso-r Board held
August 3, 1955;

"The blanket co 'e, as fi:.n-l'^in zreented, cont--.inr. several
adc'iti)ns ..icl :,-" ;ievtr Ieei i;bi'Lttco, to .ei Advisor- .oards
anu that so'ie of the present co'iL,1 iislon is (.!.ie to the insertion of
these -i.r i Ta/ 's. This ',.'is es'oecial.r true as to Prra'-ra'h :.,'7,
aid. it ",ns state. that no meiiber of the 3ordl. kne an-ti' 1;- about
this oar .7,'"'/.."

Fu-tner indications cf the conf'sio" rci 4..fo: P 7,
PRA wi.1 be fo-,'" in the "7A '-r. D-ivision (Frm:1 in S. Polla.:) memoran-
.umn dated A-.vust 7, lIo, incoiodrnt*.lk in the Appendi:i.



"1Tot to use Za- suterfu,';e to frustrate the spirit and. intent
of this a-ree-ient vhicha is, arnon-, other thin sz, to increase emolov-
'rent br a mini -erupl covenant, to remove obstructions to connuerce,
an&. to shorten hours ant. to raise wages for the shorter week to a
living basis "*

1. 0TFFIC AL E:PLAIATIOr See "Par'rAoh -l, P_" Ap endix "C-"

[. PAG-O.I_, AP1 ,9, A .IP?-.C .TT.E..TG-

"(9) Tot to increase thie rice of any- merchandise sold after
the date hereof over the .rice on Julv 1, 19L3, by Tore than is mad-e
necessary by act-al increases in 5rod'iction, re.placement, or in-
voice costs of :ierchandiso, or b taxes or other costs resulting
from action taken -ors-aant to the '.ric-l.turnl ..just-ent Act,
since Jul- 1, 1933, end, in setting 0 sach price increases, to give
full wei.-'it to 3robalje increases in sr.les volzl.e ;,n1. to refrain
fromi takin.- profiteering. aIvnnta; e of ',he co S'.-.:in puihlic."


(9819)




-22-


1. OFFICIAL EXPLANATIONS See "Paragraph 4v, Aknendix "G."

2. PRICES

"where the July 1, 1933, price was a distress price,
the employer signing the agreement may take his cost
price on that date as the base for such increase in
selling price as is permitted by Paragranh #9.11
(Basic Interpretation #5, General Johnson, NRA
Bulletin #4)

J. PARAGRAPH #10, COOPERATION

"(10) To supDort and patronize establishments which also
have signed this agreement and are listed as members of N.R.A.
(National Recovery Administration)."

1. OFFICIAL EXPLANATION See "Paragraph #10, PRA," Apoendix "G."

K. PARAGRAPH #11, CODES

"(ll) To cooperate to the fullest extent in having a code
of fair competition submitted by his industry at the earliest
possible date, and in any event before September 1, 1933."11

1. OFFICIAL EXPLANATION See Paragraph #11, PRA," Apopndix "G."

L. PARAGRAPH -.12, APPROPRIATE ADJUSTMENTS

"(12) Where, before June 16, 1933, the undersigned had con-
tracted to purchase goods at a fixed price for delivery during
the period of this agreement, the undersigned will make an
appropriate adjustment of said fixed price to meet any in-
crease in cost caused by the seller having signed this
President's Reemployment Agreement or having become bound
by any code of fair competition approved by the President."

1. OFFICIAL EXPLANATION- See "Paragraph M12, PRA," Appendix "G."

2. RELIEF TO GOVERNvMENT CONTRACTORS

Relief to government contractors, in the event costs of
performance of such contracts were increased as a result of
compliance with tho PRA and codes of fair competition, was
provided by the 73rd Congress and the President. See "Public
Act #369, Aoppendix "H."

M. PARAGRAPH 13. TERMINATION OF AND SUBSTITUTIONS TO THE PRA

"(13) This agreement shall cease upon anproval by the
President of a code to which the undersigned is subject;
of, if tho N.R.A. so elects, upon submission of a code to
which the undersigned is subject and substitution of any
of its provisions for any of the terms of this agreement."


3819






1. OFFICIAL EXPLAITATION See "Paragraph #13, PHA, Annendix "G.1

EFFECT OF APPROVAL OF A CODF UPON COUTI:TUATIOIT OF T:i PRA

(a) "MT'embers of a trade or industry ooeratinr undir the PRA,
or nrnorov'd substituted orcvisions, at the time of
aoorcval of a permanent code by thp President may con-
tinue oneranting under the PRA or a-nnroved substitution
until the effective date of the crdre, or may begin oner-
ating under the 'agc rand hour provisions of the code at
any time between thedate.of anorrcvl by the President
and the effective date." (General Johnson, October 25,
.1933)

(b) "It is the opinion of the Logal Division, NRA, that the
PRA does not. cease until the signatory to the PRA is
bound by the provisions of a code which has become
effective." (Stanley S. Surrey, February 7, 1934)

(c) "A non-signatory of the PRA ought to sign the PRA before
he may elect as to whether or not- he will abide by the
PRA or by the code during the 'er3od between aoroval
and effective dnte of the code for his industry."
(National Compliance Board, February 17, 1934)

(d) "In cases where a code exempts a person from its pro-
visions with res-ect to certain of his operations,
then there is no code to which he is subject with
respect to those o-erations and the signatory of PRA
should be required to, omply with such provisions of
the PRA as.relate to those operations."11 (National
Compliance. e3oard., February 16, 1934). Also see
S Chapter III, Section VII1,."PRA Policies,- -Substitutions
To the PRA,".

N. PARAGRAPH l14, EXCEPTIONS

"(14) It is agreed that any person who wishes to do his part
in the President's reemployment drive by signing .this. agreement,
but who asserts that some particular provision hereof, because
of -oeculiar circumstances, will create great and- unavoidable
hardship, may obtain the benefits hereof by signing this agree-
ment and putting it into effect and then, in a petition ap-
proved by a representative trade association of his induastry,
or other representative organization designated by N.R.A., may
apoly for a stay.of such provision pending. a summary investi-
gation by N.R.A., if he agrees in such a-olication, to abide
by the decision of such investigation. This Agreemient is
entered into pursuant to Section 4(a) of the-National Industrial
Recovery Act and subject to all the terms and conditions re-
quired by Sections 7(a) and 10(b)'of that Act.


9819







I. OFFICIAL EXPLANATIONS Alt BASIC INTERPRETATIONS -- See
"Paragraph #14, PRA," Appendix "G" also see Chapter III,
Section X, '"PRA Policies Exceptions To The PRA."

VII DURATION OF THE AGREEIMNT.

A. ORIGINAL AGREEI.ETT (August 1, 1933 -- December 31, 1933)
Signatories to the President's Reemployment Agreement agreed
with the President to comply with its provisions (1) during
the period of the President's Emergency Reemnloyment Drive,
August 1, 1933 to December 31, 1933 openingg oaragraoh of the
Agreement) 6r (2) until approval by the President of a code of
fair competition to which the signatory was subject (naragranh
13, PRA) or (3) if the NRA so elects, upon submission of a
code to which the signatory wRs subject and substitution of
any of its provisions for any of the terms of the Agreement
(paragraDh k13, PPA).

The Legal Division, -?.A, on February 7, 1934, interpreted the
phrase "aoproval by the President of a code to which the under-
signed is subject" to mean that the provisions of the code must
be binding unon the signatory to the PRA before he is released
from the obligations of the Agreement. Therefore, the PRA
does not cease in such cases until the signatory to the
PRA is bound by the provisions of a code which has become
effective. (See Para-raph "13, Termination of and
Substitutions To The PRA," p. 31).

As mentioned the PresiCent's Agreement was a temporary measure
to tide over the time until all employers and employees could
cooperate under codes of fair competition. A signatory to
the PRA agreed to cooperate to the fullest extent in having
a code submitted by his industry at the earliest possible date,
and in any event before September 1,'1933 (naragraph 11, PRA).
3y limiting the original Agreement to December 31, 1933, the
Administration evidently honed to have all employers operating
under codes by that date. This proved to be impossible so the
President offered to extend the Agreement.

B. FIRST EXTENSION (January 1, 1934 to April 30, 1934)

On December 19, 1933, the President offered to extend the
Agreement as follows,

* "I hereby offer to enter into the President's Reemoloy-
ment Agreement with every employer, insofar as he is
not covered by an anproved code of fair competition,
for a further-neriod of 4 months from January 1, 1934,
to April 30, 1934, or to any earlier date of approval
of a code of fnir competition to which he is subject."
(Executive Order "6515)


9819







Executive Order G6515 specified further that,


"all substitutions and exemptions annroved, and all
exceptions granted to particular r employers, before
January l, .1934,. will anpnly to the President's ReermTloy-
minent Agreemient as so-extended"

and,

"Employers who shall have already signed the-President's
Reemnloyment Agreement before. January 1, 1934, may
a.cceot this offer of extension by display of the Blue
Eagle n or after January 1, 1934. Employers who shall
not -iave signed the President's Reemployment Agreement
before Jaiuary 1,:1934, may accept this offer of ex-
.. tension by signing the President's Reemnoloyment Agreement."

C. SECOITD A:TD FI:AL EXTErSIO (:Iay 1, 1935 to the date the
signatory became subject. to an anoroved code of fair corn-
oetiti on)-

On April: 14, 1934, the President.again offered to extend
the. PRA as follows: -

"I hereby offer to enter into the President's Reemployment
Agreement with the head 'of every business establishment
as to any-part of his business not subject to an approved
code of fair com-et,ition, .for a further period beginning
May 1934,j and ending. when that part of his business
becomes -subject to an approved code of fair c omoetition."
S (Executive Order #6678-A)

Executive Grder -46678-A specified further that,

"'tall substitutions and. e;cmptions, anDroved, and all
exceptions granted .to particular: emrnployers, before
May 1, 1934, will apply to the President s Reemploy-
.ment Agreement. as so extended"

and, . .

"Employers who. shalll have signed the President's Re-
Semplymnent Agreement before May *1, 1'334, may accept
this. offer. of. extension- b, display by them shall be
deemed an acceptance of this offer. Employers who
S. shall not have signed the President' s Reemoloyment
Agreement before May 1, 1934,- may accept,.this offer
of extension by .signing, the: -President's Reemployment
Agreement." . ,


9819




-26-


D. PRESENT STATUS

"The contract (PRA) formulated by the offer extended
by Executive Order No. 6678-A and accepted by dis-
play of the Blue Eagle after May 1, 1934, must be
construed to terminate at the latest on June 16,
1935. This contract was entered into by virtue of a
statute which by its terms was to expire no later
than June 16, 1935. We cannot consider that employers
intended to bind themselves not only for the specified
period of the Act, but for any subsequent terma which
Congress may specify by amendment of the Act. Executive
Order No. 7076 dated June 15, 1935, continues in effect
all existing Executive Orders so far as consistent
with the recent amendments to the N.I.R.A. I do not
think this can be construed to extend the P.R.A. since
if we consider that the original offer of an agreement
carried the im-olied term that the agreement was to
extend only until June 16, 1935, the extension of this
Executive Order has no effect. Therefore, I am of the
oniniun that the P.R.A. could not in any event have been
deemed to be binding unon any employer beyond June 16, 1935,
in the absence of any acquiescence on his -art and on the
President to an extension of the agreement.

However, I would go further. It seems to me that the
P.R.A. must be deemed to have been abrogated by the
President on May 27, 1935. On that date following
the Schechter decision, the President announced to
the -nublic, through Donald R. Richberg,. that the en-
forcement of all existing codes would be suspended,
and this announcement carried the clear inference that
no further codes would be approved; at least until
further legislation is enacted. It was clearly the
intention of tne P.R.A. (at least of its latest ex-
tension) that it should be binding upon that small
minority of employers who were not subject to ao-Droved
codes. They would be placed at no competitive disad-
vantage since most other employers were subject to
codes. The agreement in terms was to terminate unon
the aonproval of a code. When on May 27, all codes
were in effect abrogated and the possibility of the
aponroval of further codes was eliminated, I think we
must deem the P.R.A. to have been suspended.

Whether the Schechter decision invalidated the P.R.A.
retroactively is another Question and one which will
require careful study. The same problem would be
involved if we wish to propose another P.R.A. at the
present time." (George Bronz, Legal Division,
June 21, 1935)


9819




,'7- 1r


C'.tF :". I I T

P'>:TD:'T "'Ei7PLOT T Z.- iTT POLICIES

I. I ITI.UL P ".A PO I C 113

Initial P?2A >elicies 7'nre Ivyeond '- the' A'i inis'trn'tor in'
coll-boration 'vith the Speci'-l Iin stril 2r:cove-r Board, apooi-ted by
the Pr-sident (E:',cative Ore.er K.17, June 1, lt-.5) 'lich au roved I1TA
Bullcti:is s "u:-.1ers A, 2, 3, ,7 -.,.. '1..r the t,,r,- Advisorv .o-rds
(Indastr:i-1. Avisor', Bo-a.1,., o )Ointec. b- the Se? et2.:' of Co:;rezrce;
LaLor Advisor- 30o-,!', pointstc'. by the Sec1ret2.y of La)or; Consuiers Advisory
Bo 'd, a-)oiint, i-'. the A 'i "st .tor).

Education Poolicies were developed "n: -ro.ul :atu1 1 b'j the. '-RA Public
Relations Division in'- the supervision of ?r. Chtrles S. -Horner. Policies
concer'nin- the PresidentI 's Reen loy ient,.Pro.v' w- ere developed. and pronul-
gated bu-r Ge.:-.eral Tho:S..B S. Hwanon6., E-,-"cutive Dir-6to' of ti Presidents
Em'- r-eacy Rt enploynent Pro-;r.;i. Petitions for. )F-rrnis:ion to substitute
provisions of submitted codes for provisions of the PRA, auto prized in
P-'r.;ruoh lC, PTqA- rere in the beginning handled byr Deut-r' A'riinistrators
appointed to consider p-o-oser coc.es cui.il-tted to the AO-ii-istration for
approval. This procedu e caused general confusion and r-sulted in the
estj,)lishxne.-it of the .-PRA Policy Boa-d.

II, P7?A POLICY 1r.DC' (August 7, 1953 to October 26, 1935)

A. OPRTGIN AT,! ?UP56S4 .

On Aua.ust 7, 'l19j3, the Acdlinistrator aooointed the PRA Policy Board
to (1) correlate the policies pursued in General ianriond-Is PRA.Administration
and !:r6 Hornerls EVuc.tional Drive (2) consider and report to 'the T .tional
Recovery ATm".nistrator upon petitions for substi-tutions of code provisions
for PRA nrovisicns (P'ir- r'.oh 'i3, PrdA) and (5) to issue all inte.rpretrtions
o1 the PFRA. (Office GOrder :o. 18, dated Au-ist 7 133)

B3. C-, 1I:ATI( C 7

The personal of the original P" A Policy 3-7rd- co-sisted of (1)
Chairman -.''* Aknministrator's Rep-oresentaitive, .11obert T.* Stevens, (2) a
representative of Labor assi --1-. from the La.bor Ad.visor:- Bon. -1,-.* S,
Leiserson, (3) a representative of Industry assigned by the Industrial
Advisory Board, Ei'.-'ard R. Stettinus, Jr., (4) Secretary snd Liaison Officer
it:- t- Ini.ustrial Uediation Bo?.ri, Robert K. Straus, '.nd (5)' a, lgal
A.visor to t:ie Ch'-irmc.n selected. from the .A LUe.al Division, Kilbourne
Jo ..--ston+ .

C. T EBI;I ATIC:T`

The PRA Policy Bo'.rd continu-6d to e::ec, t- b- lp functions mentioned
above until the establishment of the irttion-1l Coma)liance Bo--rd. on OctoLer
26, 19335, at -hich tine the P'_r. Police' Loa.d P. abolished 'and all of its
duties awid Eunctions necessary to be performed were tr nsferred. to the
i national Com-oli -:i:ce B3o7rd. (0,f ice order r f40 October'26, 1933).


9819






-28-

III. LTUL LAC-LA DIVISIU? 1iRA (Au-wust I, 1S33 to October 23, 193)

AI 02IGIW E LED 0.J.t:IZA'I IC

According to Office Lrrder #2 dated A.'.s in, 1933, signed by
T. S. Ha.2road, Lxecb.tive Dirictor, Pr;. si.deit1 s Repmiloyvent Program, the
c.esi.n.-tion of t.h-t office (Presi'entLts -eie-mfloornent Pro=ra-') ras to be
"31-? l-'le Division, :T'A."1 Th o:.'i-in-,.l 3Blue E?.,gle Division consisted
of C sections: (1) Ex-.ecLtive Section, (2) Information Section, (3)
FLecovery z-o-.rc.s Section, (4) Comol-ints Section, (5) Interoretntion
Section, (6) t-'centions Section, (7) Tr-Ce Azsoci.-tion Section, (8)
Insigniv. Section Althourh 'th Insi.-nin. Section is included in the Blue
E. le Division set u.) as outlined in a 31B...e Eagle Division memorandum
d.ted Aurust 11, 1923, tiere appear to be some question regarding the
Insimnr-. Section coming LLnder the Blue Eagle Division, as the '.Section is
omitted fr-om ll subsequent Blae E..gle Divisionmemoranda. (See "Blue
Ea-le Division, FRA," Ap)ondi-' "B")

B. SfGTIU1TS H.U:DLIG PMA POLICIES

The sections of the Bluae En..le Divisions handling PRA policies were
(1) E::ecutive Section, xuhich' uas cha.-,"ec. -ith cl-arin- all administrative
nrtters :L-.garcinF decisions of policy either within the Division or from
the PRA Policy Boprd. (L.E.D.i". ,1); (2) Interoretation Section which
disseiinpted information ren-Er.rinc the obtainin, of the Blue Eaglk .and
elaborated on basic i-itey"or=tn.tions incorporated in ITNRA Bulletins #4 and
those !nare br the FRA Policy- Lorr (3.E.D.I.':. #2 an. 10)* and. '()
Exceotions Section, -'.ilch w.s desi.n-a.t-d to receive i.ll petitions for
e-ce5ptio a, -.ithorized ...nder Par- r.-.ph #1-, PI. (B.E.D.I. #2 ntd #In).

C. TtEO2GSGIZATICK

O0- ice Order #Z5, d.ited Se-ot.=mber. 1', 1 33, authorized, a reorganization
and colsolidatiun of the Blu Eagle Divirion bg, Ir. Frani-: 'ealy appointed
to take ove-- thr- duties heretofore performed by General Harmnond. According
to B.iE.D.,;. #I3, Sente:!ber 30, 193, all sections of th- Division were
abolished. -,rid W. P. Fa.rnsworth, AsList-nt Counsel, Blue Eagle Division was
assigned the responsibility for interpretin- and explaining the PRA and
substitutions allo'ied tUereu-nder, Althou[-'h it was not stated, his resoon-
sibili'y Tras subj-=ct to final approval of- the PRA Policy Boardb. Also see
Append i- "C".,

D. .TERMIKIATIGIT

With the establishment of ttie IRA Cori )liance Division on October 26,
1932, the Blue EL-le Division, ITRA, becaine the 3lue Eagle Branch of the
Co.noliance Division. (Office Order #40).

IV. COMPLIA1'CE DIVISIO?- I,7 (October 26, 1933 to August 29, 1935)

A. 0?IGIN AYD .LUE EAGLE BRANCH

On October 2?5, 1933 there 'as established in ITRA, a Comnliance Divisi
headed by a IUational. Comliance Director. The Bl.-e Eagle Division, NRA,
became the Blue Ead-le BrancL of the Comfliance Division and continued in
charge of L.r-b Fr-an': Healy, Chief. (Office Order '.'o. 40)




--...-


Tv 5.e .',e rach, C... licp 7.i-ision -is rs-ooisiblN for !.i1
n. 'tt-rs co:ice.'nia,: the P2A, incli in *' i r rCt- tions, e::cr"tions i 0 .s
oermlssion ,to .oper-tz u:''r 'L"1io.i Co,1tr cts, coMn-Il.!tu of non-comoli -nce
-nm correscpoh.i-nco -itA State, DTistrict >n Loc-l ".',rCs. (Ofice Te'-or-'n-
dum d.-.tep October .-, i..). Also se- "Co--.liaiic Division, :'IA",
Appr,',;iL'.i "D".

LA .1 iw' -' V -...i. 1 .,A C' .S

On Irovepbor 2':, 1.' 2, the :lue E:-'le 3ranc c,, Co'; lia-.nc Division, -was
ar.riT-t n5. an( co,solidate6 in the La'bor, T-' Branches o6 .the Com3li,-ice Division (0. 0. #45 and C.D..'. -'). Th0 Lroor
Br-nch h-nc.led -*otitions for -:-ceptions from the PRA (authorized in
P-t r r-.)nh -1,-I PRA) -na. the Administrative Branch handled correspondence and
information (Interprptations) re rin the PRA (C.D.Q.M. #1).
C A: L1, SS 1 3 7 '11 C

Th- Anolysis --"i-ch, Conmoli-.nce Division, established April 12, 1934,
absorbed the personnell "nc duties of the Laoor .nd T".-'.f,e Practice Branches
abolished (0. 0. 2o3) P7A corres-oondenc4 a.nd interoprptations -ere ,lso
handlcd by the Analycis Br-nch.

D. iTrI:ATICL'

The personnel, records anci nate:'ial of the Conp-lia.nce Division,
HiA Re-ion?.l end State, Offices '--re transferred to the Fild Division,
NIRA, on Aug-ust 29, 1955. (Office I-istruction #21)

V. !A1IGOIAL COLTLIA:ICE -OAiD (October 26, 1933 to iay 21, 19341

A. ORIiT. AD PLrTP-POSE
44
A national Com).liajnce 3oa-.d was established in the IRA on October 26,
19CZ for the purp-oose of: (1) performinF *ll necessary tiess and functions
of the PRA Policy Board, abolished, (2) uoon reference of complaints from
the National ComDliance Director, dert-:i.-. further attempts %t adjust-
ment, recommend. e:-ceotions, remove the Llue E.7-le, or recomnend reference
to the Federal Trrade Commission or the Attorney General for r-.:,roriate
action (Office Order #40). Although Office Order #40 ant' Office i'emorEndum
dated October 28, 193S, stated that no division of TRA other than the
Blue Ea-'le Branch, Compoliance Division, should attempt to interpret. the
PA, Pl1 such. interpretations were considered and! approved b- the"7'ational
Comr.li.nce Board. Also see "ITc.tional Comoliance Board", pages 137 139.

Be C-G-A7IZATIONI

The personnel of the ori in-31 :Tafional Compliance Board (first meeting
October 30, 1933), consisted of: (1) Acting Chairman, Colonel Robert T.
Lea (Mir. Wn. H..Davis, appointed Chairuan -nd 7-Ttional Conroliance Director,
November 24, 1933, Office Order 7145), (:) Acting Indc.istrial Adviser, 1Ir.
C. L. Heyniger, (Ir. L. D,. Thomprkins a;ocinted. Industrial Adviser by the
Cha.ir.n of the Industrial A'visory ,oTf on or -bout i'Tovpnber 1, 1933),
(3) Labor Aiviser, Dr. Leo Wolman, i-ppointed by the Chairnman of the Labor


9819





-30-


Advisory Bo-rd. Permanent Advisers to the iUationr-.1 C'ilic-nce Bo?.rd:
(1) Colunsel, ?rvnklin S. Poll-!!., -si.pned by-the Lel1 Division, IRA,
(2) Economic -ind StAtistical Adviser, Stanley I. Posner, assigned by the
Research 7nd PIrnning Division, i1rA. Executive Sec-etary, G. Claiborne
Ro'rall, Jr.. (Offic- Otders 4-n r-nd 1.5).

C. iT.II.ATICi

On I 71y ?1, 131-, t- 'ti-'nr.-'l Corn )li -nce Bo-n' *e-- ?bolish!md and its
functions ink w-rson:-l -.'- t: -n-fr'..e t., nAr Comiliance Division, i'2A.
(Office O-err r).

VI. Ac:ISO.:" COU.CIL CO:ULIA'-C DI'ISIW-J, :TPA (:--r 33, 1934 to June 8,
1l%4)

Drc. Altneer, Chief of thc- Com)liancp Division, -A7, on >'ay 23, 1934,
requested i..:d *...thorize. the -it: ,bem- of' the 1-n tional CorrMliance Board
(abolishr'd) to continue to serve as Councilors until further notice.
(First n-etin. Ad-isory Council, Co.nli 'ince Division U,-RA). The functions
anC dutii-s :eu ined the st.-ie as thos- dele ated- to the former National
Coramlince 1o -. d Cpt-in Tenr-" lVil'ians P6.s up., ointed Chlpirman and
L..essrs. Behneiy --id Rumil'- continu-.d -.s Labor -aid Industrial Advisers,
r ?so ect ivel-.

VII. C.OiPLIA;ICE COU1:CIL, .7rA

On Ju--ie 8, 1924, thie nrr1""e of the AC'vieorr Co.uncil, Comfliance
Division, ITRA, ,.'as chn'nrpd to Com)li-nce Council, ?1.1A, because of conflicts
with other Advisory Co-Lccila. CO.ptn.in Henry Williams continued as Ch.irmani
of the Complia.-ice Council until his resignation on Seotember 5, 1934.
1:r. Ruml7y continued as Industri-il Adviser and also a.cted as Chairman.
Later, a second Corm-liance Council, -.A, wvas organized to assist in
disposing, of the large volume of cases '7hich h'ad accumulated. xr. Rumley
served as Industrial Member and Chairman of one, Pnd 'Er. Behney as Labor
Member and Chairman of the other.

VIII. SIU.SIITUTI0*ITS L-: I'HE PRLSIDEVIT'S '>.SI.PLOIET AGREEIEITT

A. A7JTHT-ITY

The authority for allov-in:" trades and iu-idustries to substitute certain
-)iovisions of codes of fair cnmpetitio:n, submiitte@ by them for approval by
LIP., for co--respondin. provisions of the PRA, vas incorporated in Paragraph
*r_1, PRA, 7'hic '. stated: "This a.greepent shall cease -- if the ".iPA so
elects, uoon submission of a code to &-'ich thp undersiz.ned is subject .nd
SLW'ostitIAtion of any of its provisions for a.ny- of the terms of this
are.= ne-e i t t",

In the beginning- the petitionss submitted by trades and industries
to substitute proposed code pn'ovisions for PJA oi-ovisions were handled byr
the Deputy Administrators 1h-ndlina the -)airticul.:r codes. This procedure
resulted in general confusion onid la.ck oi --nifornuity-in policy and resulted
in establishment of the PRA Policy 5o-..rd on Au.'-:.st 7, 1935. Among other
duties assigned to tlis board, it r-s. to "consider and report to the
ilational Recover- A'J.nin-'ist-'ntor upon petitions for substitutions of code
provisions for PRA provisions under Section 13, PRA (0.0. #18)".


9819







'3. I:CDI -I'A'IC"'c C7 I' SI'ITUTTIO'T

In a 'ition to n' iOrovii. ;..lat:,.titutions to t'eip ?P"A, the "A in n uil'-r
of inst.ces ?'-: roved mof.ific'tions of tC sustit ltions, s for- eF':;lle,
the 'Ioiific'tion o" t`ie S.iustitution for P-i- i.. 't ,3, PMA (rlximu>.i hours
applicable to itd-L.strial workers ) .-.r1. to the 1'et P,-.'in- Induwstry",
apmrovei b-r Generil Johnson on June 13, 19.' -for a )eriod of four 7eeks
nnd subsequ.tly e-tende( aitil J-'nu-r" 10, 1555. The oc'i 'icatirn
nmntionec ,!.- apc ovec on rk com -i .w-tion oi the r- Surplus relieff
Corporation, in of.'r to furteier thir- ecergenc cattle uuyin: .rnc` beef
coz_.nin- -ro rani for relief of the d&-c- ht situation, aid on account of the
difficulty of obtainin.-" and ti'inini ,'"itionn1 emp)loypes to ieet the
emer,;ency situation during the summer 2nd fall of 194.

C. I::s ,jc:I s:'s .o- SI: i TI 3 PETITIII'S G- T STIT UTIi-'S

1.I IF A CC(2 IAS 7: TILL 7ITH lHi COKi0?OL DIVISIO0T, :A.,

The petitioner w es instructed to: (1) obt-'in the code o0. a copy
thereof, (2) prepre a ")ptition for 72A consent to substitution", in
quad.ruolicate soeciil form.is provided, setting out in full the code
provisions to be substituted tand thp PIA :'ar'-i;:.rphs to be eliminated by
number, .n-, (3) present the code an,. the petition, together r-ith credentials
sho-7infl that the petitioners were duly constituted -re. resentatives of the
trade or indCastry to the Secretary of the P3A Policy Board.

2. I1 :70 CODE HAD BiZIT SILIin''TD TO THr C0iITROL DIVISIOIT

The -etitioner was advised: (1) that a basic code must be submitted
before the PRA Policy Board could consider arny petitionn (to expedite the
submission of a basic code for this purpose a model form j-as provided),
(2) to fr-ame its code as closely to the model, form as practicable, in
orde- to e:.-pedite the consideration of the petition by the Board, and (3)
tht the so-called Tbasic code" need. not be submitted to the Control
Division, ,.-'A, but eight copies should be submitted directly to the
Secretary of the loard as set forth in (3) Kcove.

CD. POLICIES I(LLOGED !Y -Z F'-A PTLIY: NA- I": COCTSDE-.I-,r
PE1I71IC.'3 T(7 SUT3STIT7TIO.S 110 : PA

PRA Policy Do7r-d instructions to petitioners were as follo-rs:

1. PROPOSED CODE PROVISIO:IS VS, P _A ?,OVISIOIS

"-71A will not elect to aporove the substitutions of. the provisions
of Codes for Pr:e-;raphs of PRA unless such Code Provisions cover the sane
,.round as the P3A paragraph and unless the substance of such provisions are
within the spirit of the PPA, i.e., to shorten hours and raise '-.a,-es to
increase employment and pmuchasin: po'er to appo-'oximately the 1929 level."

2. ABSE:CE CF CODL PlC7ISG1:S 7

"ITRA alloT-s no modifications of PMA if therr is no Code provision ,7hich
can be substituted, The PRA Polic- Bo-.r6 has no jurisdiction to act in
such cases",


9819




-32-


FLCTICI-:2 Or PRA POLIrY 7-.Q.j3

"The onl> function of the BoLn..r is to .niss or. t.e ,.)olic-bilit'y of
the Co,.e provisions as -'aittea. This ,'.oes not allow7 any barr.ining or
ne.:otiating o"r :-erson.l intervie-s. Sac-, a. rocP,.a,--e is not only inappro-
priate, but it ,o.s. ot .llo:- :or thip )ror.i)t treat-int to whichh all
petitions are ertitled". IHovC.7r--r, the prohibition -as waived in mWny
inst n.nces.

4. P2uc::-u'ms

"To cocpe-"-te 7ith those rlho are .Iillin to rfel,. the Tiages and hours
provisions of a sabmittcd' coa- so as to h-'ve it '-ithin the spirit of PRA
for substitution ouurnoss, the follo-ing ocedure has been adopted:

(1) Obtain fro.a, th- r-c=-tion clerl '-ork sh.'et, fill this i'n,
stetin7 in the -roaper ol-c-s (n) th- shortest possible '.-ork reek, (b)
the highest possible wa-.p, wi ich th.- industry mast have or go without
the Blue Eq.,le.*

( U) Leave the 7or': sheet -ith the Secr.tar-, of the Board. iote:
Petitioner- m.-'. -tL+tach to the uiork sliheet statistical data to sho. that
these Drovisions r.'ill brin. wa.res and. hours to aporoximatply the 1929
level. (Employment data requested, for wage earners only, wvs (a) number
employed in the industry in 1929, (b) number employed in latest available
period, in 1S7, (c) average hours actually r orke',. per :ae earner in 1929,
and (d) avera -eP hours actuAllr worked oer nenl: per we_-e earner in latest
available period in 1923. Wages data requested vE.s (a) aver-Pge hourly,
7wa.e nrtes for unskilled aor,.e e'-.-ners (m,-le and female) in 1929, (b)
aver-.ge hourly av.ae rates 'or unskilled (Orle nW> f>-ale) in latest
available 'ePrioL. in 1SiJ. In cases where the eiptitioner requested
toler,-nces o-ove th? m.r:-i:"un ''or: -reek,, the-y 'pr'e -,skeC. to submit actual
emoloymenit .'-.t by ionths for 199, 1332 ,id ,.v-il-.bla months in 1933.

Although Flh, Work Sheet '.ta.eda, "n1o .etition to substitute for
para.:raophs other: than 2 Laxinu.. Hours; 3 I'ax-imun Hours; 4 Ex:emptions
and - I.iiin-i.im Wa7.es, .-ill b- considered" this policy wias not adhered to
as a study- of th. P _A substitutions apDrovwd 'i-dl show. (See NRA Bulletin
#. and "PRA Substitations, Appenadix: "", esoeciail-r substitutions approved
for "Utilities" coverinE px-.,,ra-phs 2 to 7 inclusive and "Daily Nerwspaper
Publishing" covering all paragraphs of the PEA except #8 Anti-Subterfuge,
anLd -in Cooperation).

() "The Policy, Bo-rd will render a decision on this basis as
soon as possible (after a st,,.tisticel analysis has been made -to determinee
whether or not the DroposF-d vges and hours nil! bring employment and
purchasing power to approximately the 1929 .l-avei)".

(4) "If the Policy Boar.<' a.iplro-es the ')-tition it will draft
a coc'e provision which vill incldue the rcques-tec chnnrges. This draft will
be prepared for the signature of the )etitioner a.nC when signed will be
imnmedliately sent byr the borrd to General joa.,son for his sEnature."

"Apparently this rie.ns st..ternrnt of the sh:,rtest rrek and highest
vTaglP the ind.istry could -.a6cnt."


98103







(5) "If the -etition is r.ject by the Board, the Board
will return the Work Sheet 'ith a notation -s to the: (a) work
week, anc (b) irnirnunm wa:e, whichh r'ill be .-ov'd eb.' the board .
If the Industry a2rees to this, tho Bo'rcl vUill draft Code s.-ctions
which incluc'e these provisions--this will be appmrov.ed by the Bo;ird
an.' sent to Genercal 'Jo L n.

5. DD7 LIIT:] 70- SU.-3 ITTIITG PETITICUIS FOR SUBSTITUTIOINS

In a memorandum deated Sintembor G, 1933, General H-mmond
reccmrn-n.'.ed to the 1I?A *-iniiiistrator that no petitions for sub-
stitutions to the PiA be conside'r6d ic n 'cases where proposed codes
were filed v:ith NA after midnight Sentemher 15, 1/33. Press Re-
lease 742, dated September 13, 1933, states that October 1, 1933
was the deadline for substitiitin proposed code provisions for
PRA provisions, and that the substitutions of code provisionswh-ro
less than 1,000 employees v.'ere involved, would not be aoproved.
IRA Bulletin "Tn. 6, '"'Subs'titut'dd Wages ahcd H?.urs Provisions of the
PRA", dat2d October 14, 1933, states on pa-e III that no further
substitutions will be af:proved. Except in a few cases such as the
Cotton Seed Crushin 'Ilndustry substitution approved' December 1,
1933, no substitutions to the P-A were approved efter October 1,
1933. ....

E. NATUR3 OF SUISTITUTIOUS TO '1:3 PT A A"D Ii'DUST2IdE3 AFFECT7D-

With few'exceptions, the substituted provisions dealt with
nothing but wages or hours or both. 1'TA Bulletin ',6 "Substituted
'.ages and Hours Provisions 0lf the P'IA", dated October 14, 1233,
signed by General Johnson, NRA Administrator and approved by
Secretary of Commerce Roper, Chairman, Soecial Industrial Recovery
Board, contains the text of all substitutions to the PRA approved
or authorized by the ZT'A, except those for trades and industries
covered by approved codes October 14, 1933 and the few substitu-
tions approved subsequent to that date. The substitution approved
on July 31, 1933, for the "Retail Dry Goods, Depart.ment, Specialty
Shop, Mail Order, Men's ClothfnC and Furnishings,. Furniture, Hard-
ware, and Shoe Store Trade" was omitted, because a.:proval of the
"General Retail Code" was expected at an early date (*).



(*) In Appendi:.: "F" of' this report an attempt has been made
to furnish complete information relative to; (1) the nmes
of all industries anc./or trades which petitioned to INRA
for permission to substitute or modify substitutions of
proposed code provisions for PRA provisions, (2) paragraphs
affected, (3) action taken and &ate thereof, (4) reason for
rejecting or withdrawal of the petition, (5) industries
authorized.representative, and in cases where a code was
approved which was applicable to the trade and/or industry,
the approval and effective dates,
(Footnote continued on next page)


9819






-34-


A study of the PRA Policy, Board files indicates the follow-
ing pertinent information:

(1) Substitutions approved. ....... ......... 385

(.) Petitions for substitutions rejected
by URA includingt 3 rejectedbby the
industry (birccle, terra cotta, witch
hazel) after RL-' had modified the
petitions............... ......... ....* m. 134

(3) Petitions presented but no record of
action t aklcen............................. 2

(4) Petitions for substitutions withdrawT.i
by industry ............................ 45

Total number of Industries netitionin 1ITA for sub-
stitutions to PRA.................................. 566

(5) Iviodifications of substitutions to PEA.... 13

F. APPLICATIOIT OF APPROVED SUBSTITUTIONS

All employers in a trade o0- industry, for which 1TRA 'approved
substitutions to the PRA, wYere p-ermitted to-operate under the
substituted provisions: instead of the 'corresponding provisions
of the ??A. In every case the paragraphs of the PRA remained
in full force Without change, except where ITRA elected to substitute
propos3d.code provisions for corresponding *PPA provisions. (N A
Bulletins ;7'-4 and r6). "It is not proper for firms to operate under
the wages and hours provisions of the proposed code for their in-
dustry when such provisions have not yet been accepted for substi-
tution of thiPRA. Firmns signing the PRA with the notation that they
'lill operate unc.er the hours and wages provisions of the proposed
code for their industry should have their agreements returned to
them with the advice that the provisions of the PRA apply to their
employees until such time a.s their proposed industry, code has been
acce-oted for substitution. "iWhere an employer is honestly in doubt
about which proposed industry code applies to his business, the N1RA
does not object to his operating under the accepted substitution of
a proposed c.de which seems to apply to him and will consider him o.,




(*) Footnote continued.

This code information as presented i6 incomplete, as it
involves a Qcomplicated problem due to the fact that except
in few instances definitions of the trades or industries
involved were not incorporated in the substitutions and also
due to the problem nf multiple code coverage.' The time allowed
for submission of this report will not permit as exhaustive a
study as it required.
819 See also VWork Materials Io. o0.
9819








as op.ratin- in hUiT.1ony with the spirit of the PRA if he docs
so." (Liasison Circular tnbo ,9, Steber 8, 133). n an em-
ployer hns siLn,-d the PI., without modification, and rv'hre sub-
sequcntly a modification of the ?L has been apC'ovId for a ,ivcn
industry, of which the eorployer is a m:..iber, such erlo;'r .ay
operate -Lnecr the p-')roved modificationn of the PA for his industry,
just the sa'm. as any other eirployer in this industry. To do other-
wise would, be to most unjustly penalize those vho have shonm a most
ccmm.-ndable and patriotic spirit of cooperation". (T. S. 7rrr.-ondl,
Aug. 5, 1933).

"Approval of a substitution by the PT? is not a guarantee
that the substituted provisions will be approved without change in
the permanent Code of F.-ir Ccmpetition for the a-rticular trade
or industry". (T-hA bulletin 76).

The fact that 1PA consented to the subostitutioni of the wages
and hours provisions of a proposed code for corresponding provisions
of the PRA did not d.-prive a member of the particular industry involved
of his right to petition for indiviS'.ual relief due to unavoidable hard-
ship as provided in Pergraph :,"14, PRA. (1T.A Bulletin :"4)

G. CO]l,- :TS

In a number of instances, especially in the cases of "Utilities"
and the "Meat P?.ching Industry", the substitutions allowed the members
to do practically anything they desired and yet operate under the PRA.

1. UTILITIES (Electric Light and Power, Gas Operating Utility,
ITatural Gas, Telegruiphic Comnmunications and
Telephone Cotm-anies)

The substitutions approved for these industries cancelled Para-
graph #7, PRA, which provided that the compensation for er.:ployr.ient
now in e::cess of the minimum wages specified, should not be reduced
(notwithsta.nding.-, that the hours worhedin such ermploymjnt may be re-
duced) and to increase the pay for such employment by an equitable
readjustmmnt of all .a::, schedules. Io provision was incorporated
in the substitutions for Paragraph 7 cancelled; therefore, they
were not required to m'.intain wage scales above the minimum and they
were not required to readjust equitably all pay schedules. See also
"Telegraphic communications industry" Appendix "G".

2. .:.-.-T PAC:II.G I TDJSTRY

Paragraph 4 (a) substitution approved for the ,eat Pacl]ing
Industry states: "The maximum hours fixed in the fore-oin" paragraphs
#2 and 7r3 shall not apply to---ermloyees in executive, managerial,
supervisory or technical capacities, nor to their imrnndiate assis-
tants", and (b) -----emrployees exercising managerial functionswho
now receive more then $35.00 per we". The wording of these para-
graphs presented a number of problems: (I) Para.:raph ,:4(b) exempted
from raximum hours employees exercising rnr.nLerial functions only in


9819






-36-


the event they received more than $35.00 per week, while Paragraph
#4(a) exempted from maximum hours, employees in executive, managerial,
supervisory or technical capacities, regardless of the weakly salary
received, and (2) the term "immediate assistant" was not definite
and.was construed to inacluder.any eranloyees which never should or
were intended to be exempted front the mximun hours provisions.


9819




,-~,-,


IX. INTERPRETATIONS OF THE PRA

A. SPECIAL I !TE..PRETATIO"IS C01,.1,IITTEE

The PRA as ori.inallv drafted was subject to interpretation
even before it was released to employers for siUn.iture on July 27, 1933.
This is indicated in IRA release #9E, dated July 25, 1933, which states:
"IMachinery for interpretin,-:; and clarifying: the blanket code, as
promulgated by the President, was set up in the IRA today. A Comlittee
headed by G.'neral Hamnjiond, will receive and answer questions in relation
to interpretation of the code." This Committee, consisting of General
Hammcnd, Executive Director, Presid.lont's 3eem-)lovment Program as Chair-
man, and representatives of industries, consumers, labor and the I'A le-
gal staff, after several sittin':s of almost .24 hours per day, developed
21) basic interpretations of the P2A.

After approval by General Johnson, the 21 basic interpretations(*'
(the 21st .developed later) were incorporated in NRA Bulletin #4 "What
the Blue Eagle I.eans to You and How You Can Get It, Official Statement
of the Blue Eagle Division, NRA." These basic interpretations were re-
le-sed to the public as follows: Numbers 1 to 6, July 28, 1933, NRA
release #124; Kuinlmers 7 to 12, July 31, 1933, release # 140; Numbers
13 to 19, July 31, 1933, release #147; Numbers 20, August 3, 1933, re-
lease #168; end Namber 21, August 21, 1933, release #412.

B. NATIONAL LABOR BOAJ I. 0- OF ARBIT TION

Fear that the remarkable evidence of cooperation in the com-
mon cause of restoring employment, increasing of purchasing power,
and gratifying prog-ress already made', might be endangered by differing
interpretations of the PRA by some employers and employees, led the
Industrial and Labor Advisory Boards on August 4, 1933, to unanimously
recommend the creation of a Board to protect every interest and to
which differences might be referred. The creation of this Board (er-
roneously named "National Board of Arbitration") was announced on Aug-
ust 5, 1933 in TIRA release #195,

In Executive Order #6511, Decer.ber 16, 1933, the President stated
that "The National Labor Board, created on August 5, 1933, to 'pass
promptly on any case of hardship or dispute that may arise from inter-
pretation or application of the :PRA', shall continue to adjust all in-
dustrial disputes, whether arising out of the interpretation and opera-
tion of the PRA or an,, duly approved industrial code of fair competi-
tion, and to compose all conflicts threatening the industrial peace of
the country. All action heretofore taken by this Board in the discharge
of its functions is hereby approved and ratified." The original Na-
tional Labor Board, as recommended by the Industrial and Labor Advisory
Boards, consisted of Honorable Robert F. Wagner, Chairman; Dr. Leo
Wolman, Chairman, Labor Advisory Board; Walter C. Tcagle, Chairman, In-
dustrial Adv7isory Board; William Green, John L. Lewis, Gerald Swope and
Louis E. Kirstein.


(*1 "See Appendix G."


9819







It is doubtful whether the National Labor Board as such, ever acted
on any interpretations of the FRA; hQwever,' they did handle a number of
PRA cases involving labor disputes.

C. PRA POLICY BOAPD ..

In announcing the apooointment of the PRA Policy Board on Au-
agust 7, 1933, General Johnson stated: "All interpretations of the PlA
requested by the Industrial Mediation Board, General Hammond or other
proper'authorities shall issue from this Board."

After the abolishment of the PRA Policy Board on October 26, 1933,
all its duties and functions were delegated to the Nlational Compliance
Board and later to the Advisory Council, Compliance Division and final-
ly to the Compliance Council, Ii,, See Office Orders #18 and #40: "PIA
Policy Board, Chap. III, Sec. II and "INational Comoliance Board," Chap.
III, Sec. V, supra.

D. INTERPRZTATIONS SECTIONS BLUE EAGLE DIVISIONU.-1RA

The public announcement (;.'A release #98, July 25, 1933) of a
Committee to receive and answer questions regarding interpretations of
the PRA and the release of the agreement to em-oloyers for signature on
July 27, 1933, resulted in an avalanche of inquiries by mail and wire.
To handle these inquiries and to promulgate interpretations. and rulings
made by the FRA Policy Board, General Hammond on August 11, 1933, estab-
lished tnie Interpretations Section of tl-e Blue Eagle Division. See
"Blue Ea-gle Division IlA," Apo6ndix "B." .

The Interpretations Section in reolying to .inquiries received from
employers and consumers followed the principles .set forth in the 21 ba-
sic interpretations. In cases where the inquiries were not covered by
the basic interpretations, the problems were presented to the PRA Po-
licy Board. Due to the great number of problems submitted, the Policy
Board as a Board was unable to render decisions without delay which re-
sulted in many interpretations and rulings being made by the legal ad-
viser to the Board (Kilbourne Johnston) and later 17m. F. Farnsworth-.

Subsequent to the abolishment of the Blue Eagle Division NRA, and
the establishment of the Comoliance Division, NRA, on October 26, 1933,
interpretations were handled by Blue Eagle, Administrative, and Analy-
sis Branches of the Compliance Division, JURA, in the order named.

Under the heading "General Interpretations, Explanations, Instruc-
tions and Rulings Regarding the PRA," in-Appendix "G" of this report,
an attempt has bee made to compile and list all interpretations, etc.,
used in explaining and administering the P.A, and wherever possible the
source is given.

X. EXCEPTIOiS TO THE PRA (CASES OF INDIVIDUAL HARDSHIP)

A. AUTHORITY

The authority for granting exceptions to Individual Employers,
after signing the PRA, in cases where some particular provision or


9819




-39-

provisions of the PRA would create great and unavoidable hardship is pro-
vided in Paragraph #14. FA, which states:

'tIt is agreed that any person who wishes to do his part in the Pre-
sident's Reemployment drive by signing this agreement, but who asserts
that some particular provision hereof, because of peculiar circum-
stances, will create great and unavoidable hardship, may obtain the
benefits hereof by signing this agreement and putting it into effect
and then, in a petition aooroved by a trade association of his in-
dustry or other representative organization designated by NRA, may
apply for a stay of such provision ending a summary investigation
by NRA if he agrees in such application to abide by the decision of
such .investigation. This agreement is entered into pursuant to sec-
tion 4(a) of the National Industrial Recovery Act and subject to
all terms and conditions required by section 7(a) and 10(b) of the
Act. 1

"Exceptions" to the PRA should not be confused with "Substitutions."
Exceptions a-olied only to Individual Employers while substitutions to
the PRA after approval by NRA applied to all members of a particular in-
dustry or trade.

B. ESSENTIAL INFORMATIO/i REQUIRED TO BE SUBRiITTED BY PETITIONERS

Exceptions to the PRA, under Paragraph #14 could be granted
only in the event peculiar circumstances would cause great and unavoid-
able hardship upon application of-PBRA provisions by.an individual employ-
er to his business. The burden of proof of "great and unavoidable hard-
ship" was on the petitioner and sufficient data and information was re-
quired to substantiate such hardship.

There was no standard form developed for presenting petitions for
exceptions to the PRA; however, it was necessary that the petitioner sub-
mit and certify to the following information and data:

(1) Name and complete address of petitioner.

(2) Name of trade, industry, organization or Association to which
the petitioner's business would be applicable. Also specific
information regarding the nature-of the petitioner's business.

(3) A statement that the petitioner had signed the P-RA, had put it
into effect, had signed a certificate of compliance and was
or was not displaying the Blue Eagle.

(4) A statement that the petitioner believes and asserts that a
certain provision or provisions of the PA would create a great
and unavoidable hardship because of peculiar circumstances in
his enterprise.

(5) Statements in detail setting forth sufficient facts to substan-
tiate the petition's contention that because of peculiar cir-
cumstances compliance with the PRA and/or applicable substitu-
tion was causing Aeat and unavoidable hardship.


9819






-40-


(6) In cases of a petition requesting exception to maximum hours,
the exact number of hours desired in lieu of maximum PRA hours
and/or any applicable approved substitution thereto.

(7) In cases of a petition requesting exception to minimum wages,
the exact wage rate desired in lieu of the wage rate pres-
cribed in the agreement and/or any applicable approved sub-.
stitution.

(8) A statement that the petition had been approved in writing
by a representative of the Trade Association of the netition-
ers industry, the Local Chamber of Commerce, or a representa-
tive of a similar organization-designated by ,IRA.

Note: Subsequent to September 12, 1933, petitions were re-
quired to be submitted to Local NRA Compliance Boards for pre-
liminary approval and not to any other organization or agency.

(9) Total number of petitioner's employees, and the number affec-
ted by the exception requested.

(10) Duties of employees affected by exception requested.

(11) A promise to abide by the decision of IRA on the petition and
in the event of a decision against the petitioner, effective
as of date of 1RA decision, the original PRA provisions and/
or provisions of any applicable approved substitution previous-
ly stayed by preliminary approval by any organization autho-
rized by IMA.

(I1) A labor shortage certificate signed by the Federal Reemploy-
ment Service State Director in cases where petitions to work
longer hours were based on a shortage of labor. (Policies
followed by Exceptions Section, Blue Eagle Division, NRA.

C. EXCEPTIONS SECTION, BLUE EAGLE DIVISION, NRA

As soon as the PRA was released to employers for signature,
NRA received a large number of petitions requesting relief from certain
provisions which were causing the individual employers great and unavoid-
able hardship.

To handle the increasing volume of petitions for exce-otions, Gene-
ral T. S. Hammond, Executive Director, President's Reemployment Program,
established on August 11, 1933, an Exceptions Section of the Blue Eagle
Division. Mr. M. H. Pettit was appointed Chief of the Section and he
was followed by Colonel J. G. Cowling as Chief on September 7, 1933.
(See "Blue Eagle Division, NRA," Appendix "B."

In addition to handling ordinary petitions for exceptions to the
PRA (Paragraph #14), the Exceptions Section, handled Petitions for per-
mission to operate under Union Contracts calling for hours longer than
the maximum allowed in the PRA. These petitions were handled in the
same manner as those presented under Paragraph #14, PRA. (See "Con-
tracts Labor Union," Apoendix "G."




-41-


SSubsequent to the abolishment of the Blue Ea;lo Division, NRA, and
the establishment of the Comoliance Division, NiRA, on October 26, 1933,
petitions for exceptions were handled br the Blue Ea.le, Labor and
Analysis Brpnches of the Complianco DiviSion in the order named.

1. POLICIES FOLLO.I'/D BY ILRA Iii CONSIDERING :EITTIONS FOR EXCE'TIOiIS
TO THE PRA

Although it was difficult to determine just what constituted greatt
and unavoidable hardship, such petitions were g.jnerally granted in the
event the petitioner clearly indicated that his only alternative was to
dismiss the enmoloyees concerned or close down the entire establishment.
Based on a thorough examination of the petition,, the following policies
were observed by !IRA:

(a)' The petition was denied if the plea was vag-ue and unavoidable
hardship wag not'clearly substantiated. In cases where the petitioner
clearly showed that the increase in labor costs due to complianc'6 would
ruin his business because of lack of capital and/or sustained losses
for several years immediately proceeding signing of the PRA, the peti-
tion was given careful consideration.

(b) T-hen the petitioner pleaded scarcity of skilled labor, the pe-
tition, was denied pending certification of labor shortage by the Federal
Reemplo3yaent Director of the petitioner's district.

(c) Petitions requesting exceptions for peak season operations
were usually denied in cases where periods of three months or more were
involved and an adequate labor supply was available, where there was a
possibility that regular employees counted on -eak periods for income
to carry them through slack periods the petition was usually given fa-
vorable consideration but generally overtime nay of one and one-half
times the employee's regular rate of compensation was required in such
cases.

(d) In cases where the petitioner clearly established that due to
the peculiar nature of his business it was necessary to train new em-
ployees in the establishment and an earnest effort was being made to do
this, the petition was sometimes granted for a specific period.

(e) A simple plea of coTnoetitive disadvantage with firms not ope-
rating under the agreement was as a rule not considered sufficient for
the granting of an exception, because there were also competitive advan-
tages in operating under the ,PPA and displaying the Blue Eagle.

(f) Where firms enjoyed business resulting from Federal sources,
their petitions were usually denied.

(g) There was a prevailing belief that the nearness of the distri-
butor to the ultimate consumer meant a greater competitive advantage to
signers of the P3RA, therefore, in such cases as laundries, restaurants
and other retail outlets the operators should be willing to be placed at
a considerable wage disadvantage before requesting relief from the pro-
visions of the PRA.

(h) Petitions based wholly on the plea that competitors were granted


9819





-42- -


exceptions, were denied. If, however, the petitioner established that
such action resulted in serious hardship in his case, the petition might
be given favorable consideration.

(i' In cases Where new industries or new establishments in old
industries could not be operated at a profit without operating under
low labor standards, the reasons for existence of such business were
seriously questioned.

(j) So called "non-profit" and "service industries" required spe-
cial study, (1) It was felt that many agencies such as retail credit
agencies, set up to prevent losses due to bad accounts, should not be
considered as "non-profit" agencies, and therefore, they should not be
given any special consideration; (2) it was also believed that distinct-
ly service organizations such as Y.M.C.A's, Y.J.C.A.'s, etc., should
not be granted exceptions in departments competing with outside groups,
such as restaurant or where no special benefit saccrue.e& to the emnoloyee.
However, in cases where the employment might be considered as training
for public service, exceptions might be warranted.

(k) Theoretically the status of a provision of proposed codes
should have no bearing on considerations of exceptions to the PRA; how-
ever, if approvalof a code to which the petitioner would be subject,
was imminent, it was not considered good policy to overrule a Local
Compliance Board and alter changes in wages and hours temporarily autho-
rized, for a short time pending approval of the code.

(l) Where the petitioner requested relief from the PRA on the ground
that he would conform to the provision of the industry's proposed code,
the petition was denied because to do otherwise would mean prejudging
the code.

(m) Deputies were usually consulted before acting on petitions
for exception to the FIRA, if proposed codes for the petitioners indus-
tries had been given public hearings and they were in the final stages
of development, for the purpose of Escertaining their status and pro-
visions likely to be approved.

(n) If a petition requested more relief than would likely be pro-
vided in a code awaiting approval, the petition was either denied or
modified to conform to the provisions expected to be approved in the
code.

(o) In cases where a substitution had been approved for the peti-
tioner's industry, the petition was denied and a copy of the substitu-
tion was sent to the petitioner unless the substitution failed to meet
all requirements of the petitioner.

(p) If a code had been approved which was applicable to the pe-
titioner's industry, the petition was denied and the petitioner was
notified that he must operate under the code provisions.

(q) In cases of Union Contracts made prior to PRA where a copy
of the Contract was submitted with the petition (1) if the employees
were paid by the day, week or month, the petition was denied; (2) if
the employees were paid by the hour and the petitioner had attempted


9819





-43-


to adjust the maximum hours of employment downward and equitably adjust
upward the hourly "-ge rate, and the Union would not agree, the
0,-itition "-s er'ntc--; otI.'r-iise, the petition was denied or the
petitioner reaueste': to atte:ipt such adjustments*

(r) Petitions referring. to Parnrn-ouh 0l2, IA, forwardd contracts)
were given special consideration ,.nd the petitioner was ndvisod to
either seek an adjustment from the other i:arty or the petition was
decided on its own merits.

(t) Petitions invtvin; section 7(a) of 1TIRA were denied.

2. PROCEDURE FOLLOWED BY ITA I-r CONSIDERING P2TITIOiTS FOR EXCEPTIONS
TO THE PRA

Petitions for e-ceotions to the PBA received by the "Exceptions
Section, Blue Eagle 'Di-ision: were first assigned to analysts for
review, brief digests -ere preo-ired .nd the petitions and digests after
being reviewed by Assistant Counizels were submitted to the Nitional
Compliance Board*or their authorized representatives for final considera-
tion. In cases of doubt advice was obtained from Deputy Administrators,
the Labor and/or Industrial Advisor": Boards, or the Liaison Office to
A. A.A.

On November 28, 1933, the following plans presented by Mr. Pollak
to the National Oom-oliance Board were approved for handling future
petitions and the 20C) or more on hand at that time awaiting action:

/ (a) FUTIEm PETITIO-S (LO-AL) )

(1) Table all restaurant petitions until December 15, 1933,
except those asking for a variation of mor-e than 10:; in hours and/or
wages.

(2) All other petitions to be acted on by the Compliance
Division without consultation with the National Compliance Board except
in extreme cases.

(3) Petitions involving non-unanimous approval by a Local NRA
Compliance Board and extreme cases (except as established by precedent)
to be referred to the INational Compliance Board.

(b) FUTURE P'jTITIO:TS (NCOI-LOCAL)

I. No general rules were formulated for tabling or approving
future petitions (non-local), e-:ceot where covered by precedent; all-
were considered by the [itional Comoliance Board, Advisory Council,
Compliance Division, -IB, or the Compliance Council, NRA.

(c) PEITDING I gTITIO:'S

'1. Table if unanir.ousl'r a-ooroved -nd they 1*ere not "extreme."1

2. Review if "extreme" or not unanimously aoproved by local NRA
Compliance Boards. '

9819 .




-44-


(d) NON-EXTREI I CASES

Petitions requesting relief within the following limits were not
considered extreme:

1. Original PEA.

(a') Paragraph #2 (Maximum Hours) 44 Hours

(.bt') Paragraph 73 (Maximum Hours) 40 Hours, or 8 hours in
any one day

(c') Paragraph #5 (Minimum Wages) -

In Cities of Not less than

Over 500,000 SL3.50
S250,OOr .. 13.05
I 2,500 12.60.
Under 2,500 10..80.

(d') Paragraph #6 (Minimum W.ages)- ?Tot less than 27 cents,

(2,) SUBSTITUTIONS TO TIE PRAL

(a') Hours 10 percent provided thn.t except in Paragraph #2
(Maximum Hours) 48 hours and Paragraph #3 (Maximum Hours) 44 hours,
and provided that in cases of substitution and no modification had been
made of Paragraph f3 (maximum hours) forty hours was to be the limit,

(b') Wages Same as above (1C')

(e) LOCAL VS NON-LOCAL TRADES OR INDUSTRIES

It was agreed by the National Compliance Board that where the
facts presented in the body of the petition indicated that the petitioner
was operating in competition -ith outside establishments even though
the petitioner was in an industry ordinarily considered local, the
petition itself should be treated as non-local.

On December 5, 1933, Dr. A. J. Altmeyer, Chief, Compliance Division,
1IRA, reported to the National Comoliance Board that 2000 petitions for
exce-otions to the PRA were still rending and that the formula approved
by the Board on November 28, 1933 had eliminated only 204 of the entire
group. -Dr. Altmeyer then submitted a new formula, the anoroval of
which was held in abeyance until the next meeting to enable further
study. On December 6, 1933, the Board authorized Mr. Behney, Labor
Adviser to work with the Exceptions Section in examining all petitions
for exceptions to the PRA which had not already been s'cted upon and to
use his best judgment in recommending disposition thereof with advice
that decisions of Local NRA Compliance Boards should not be overruled
without good and sufficient reason. ..

D. LOCAL NRA COMPLIANCE BOARDS

1. PETITIONS FOR EXCEPTIONS PRESENTED UNDER PARAGRAPH #14, PRA
9819






-45-


Prior to the organization and establishment of Local ITRA
Comoliance Boards, petitioners for exceptions to the PRA (Paragraph
rl4) were instructed to have their petitions aouroved by their trade
Association, Local Chamber of Commerce or other representative
organization designated by IPA and then submit it to the Administration
for final action. (1,RA Bulletin #4).

Subsequent to September 12, 1933, petitioners were instructed to
submit all petitions for exception from the various provisions of the
PRA direct to their Local NIRA Compliance Board and from that date
(September 12, 1933),no petition should be presented to or accepted by
Trade Associations, Chambers of Commerce or anry other organizations.
(MBA Bulletin #5).

(a) LOCAL INRA CO0PLIANCE BOA :D REGULATIONS FOR KA1DLING
PA[AGPAPH 14. PFRA PETITIONS FOR EXCEPTIONS (1,?A
BULLETIN --5)

(1) "All petitions for exemption from the provisions of the
President's Reenrloyment Agreement under -oaragraph (14) thereof (herein-
after called "Petitions") should be submitted in duplicate direct to
the Board (Local NIRA Compliance Board).

(2) From the date of' these regulations, Sepotember 12, 1933, no
petition shall be presented to or accented by trade associations,
chambers of-commerce,' or any other organizations..

(3) The question presented by a petition is whether or not some
particular provision of the President's Agreement, because of peculiar
circumstances, would create great and unavoidable hardship in the
case of the individual petitioner. The burden is on the petitioner to
present sufficient facts in his written petition to decide this
question. The petition should be signed and sworn to before a notary,

(4) No exeTiption from paragraphs No. 1 (Child Labor.)'; No. 8
(Anti-Subterfuge); No. 1 (Cooperation); No. 11 (Codes); or No. 13
(Termination and Substitution), of the President's Reemployment
Agreement may be approved and no exemption from a statement of an
interpretation or understanding of Section 7 (a): or, Section 10(b) of
the National Industrial .Recovery Act may be approved,.

(5) If the board finds by unanimous 'vote that, the petition is
justified by the facts, it should be approved and the petitioner
informed of this fact. He may then operate under his petition without
displaying any "provisional" bar upon his Blue Eagle.

(6) If the board finds by unanimous vote that the petition is not
justified by the facts, it should be disaonroved -nd the petitioner
informed of this fact.

(7) In either of the above cases, one cony of the petition, with
the Board's action and the reasons therefore, should be forwarded to the
secretary of the District Recovery Board at the District Office. The
.other copy should be kept in the files of the board. NRA may reverse
the action of the board in these cases if it finds that such action is


9819





-46-


unjustified. In order to prevent such reve-sals, the board should
assure itself of IRA policies by requests for information from the
secretary of the District Recovery Board at the District Office in all
doubtful cases.

(8) If, the board finds by a majority vote that the petition is
or is not justified by the facts, the petition, with majority and
minority reasons for approving or rejecting it avnendetl thereto, should
be forwarded,.to the Secretay, of the District Recovery Board at the
District Office, a cony being, kept in the files of the Board. An
approval in such cases '-ill operate as provisional permission to pro-
ceed in accordance with the -petition as approved, pending final action
by NRA. Until.such time as 1N1RA does act, the :ptitioner should be
informed that he may not display the Blue Eagle except .*ith a white
bar across its breast bearing the word "Provisional".

(9) If a substitution has already b.een.granted for the employer's
trade or industry, the Board should require a ituch clearer showing of
individual hardshi- before granting an individual exemption "lith respect
to the substituted provisions..

(10) In any case in which the petitioner .asks for more than one
exemption, each exemption should-be considered separately and a
separate decision made on each,'so that a petition may be approved in
part and denied in partof the facts so warrant.

(11) In no case should a group exemption be allowed. Paragraph
#14 of the President's Agreemeht applies only to tases of individual
hardship.

(12) In every case a co'oy of the petition with a notation of the
decision of the Board and a cooy of the recommendation of the Board, if
any, should be kept in the files of the Board.

(13) The files of the Board on exceptions should not be open to
the public". -

2. PETITIONS FOP.PER AISSION TO OPERATE UNDER. UNION CONTRACTS
i
Originally, petitions to operate under Union Contracts were sub-
mitted directly to the NA for consideration. The approval of a
trade association or other representative organization "as not required
(IRA Bulletin #4). Following the establishment of Local TMRA Compliance
Boards, petitions involving.Union Contracts were first submitted to
these Boards for consideration, and then to the FRA for final considera-
tion (IRA Bulletin #5)*

(a) LOCAL NRA C01!PLIANCE BOARD REGULATIONS FOR HANDLING PRA
PETITIONS TO OPE" r5).

.(l) "Every petition to work e"rmoloyees under a Labor contract for
longer hours than are permitted under the President's Reemployment
Agreement should be signed in duplicate at the foot of the petition by
the petitioner, and sworn to before a Notary. It should be accompanied


9819




-47-


by two certified copies of the contract.

(2) If the labor contract calls for the payment of wages (at a
rate Pbove the minimum under the Pre-.ident's Reemnoloyment Agreement)
by the day, "eek, or month, the-e should be no grounds for a petition.
By oRragraoh #7 of the President's Reenrloyment Agreement, the employer
hns promised to reduce the hours of workers maid by the day, vweek or
month, to the maximum under the Akreement -ithout reducing ; their pay
by the day, "'eek or month. He is, therefore, obliged to make an offer
to tais effect to his employees under the contract, end undoubtedly
the offer,'7ill be ncceoted. Such petitions should be refused unless the
emioloyer can show some unusual reason why his employees are unwilling
to work shorter hours at the same wafe.

(3) The orooer cese for a Labor contract petition is one in which
the contract calls for payment of the employees by the hour. An
employer with such a contract should prdpose to his workers a reduction
o& their hours to the maximum, coupled with an upward equitable readjust-
ment of their hourly rate, in accordance with paragraph #7 of the
,President's Reemn-oloyment Agreement, ".s explained in basic interpreta-
tions #1 and #23. If the employer and his employees c!-nnot agree on
the equitable readjustment, so that ann agreement cannot be reached for
a reduction of hours, a petition may, be filed.

(4) If no atteiipt has been made at arriving at an equitable
readjustment by agreement the petition should be denied.

(5) Provided,. that it is a proper case for a petition, as
described above, the Board should then satisfy itself that the con-
tract is a bona fide contract. If it was made on or after June 16,
but not before the date when the employer signed the President's
Reerrmoloyment Agreement, the Board should make certain that the contract
was not made to evade the President's Reemioloyment Agreement.

(6) If the contract was made after the employer signed the
President's Eeem-oloyment A"reernent, or for the ouroose of evasion, the
petition should bedenied.

(7) The petition should also oe denied if the contract is subject
to change or termination at the will of the employer.

(8) If the petition indicates that mediation by the Board might
lead to agreement between the emrployer and his employees, the Board
should attempt mediation. This should be done by contracting the
em-oloyees, or their representatives, and offering to mediate. If the
mediation is successful, the Board may give permission to the employer
to operate under conditions agreed uoon by the employer with his
employees.

(9) If the mediation fails, or if the Board finds that mediation
is useless, the Board may give permission to the employer to operate
under the existing contract.

(10) In any case here the Board believes that further mediation
should be attempted, it should refer the petition, -7ith a re-oort on





-48-


the situation, direct to the National Labor Board, Washington, D.C. A
report of this section should be sent to the Secretary of the District
Recovery Board at the District Office.

(11) If a petition is denied or arnroved, one cooy of the
-petition and contract -ith a report of the Board's action and reason
therefore should be forwarded to the Secretpryr of the District Recovery
Borrd at the District Offibe. The other cony'of the petition and con-
tract should be ke-ot in the files of the Board.

(12) Where the petition has been denied because of the failure of
thile e-Toloyer to attemot an equitable readjustment (4) above, the employer
,Till oe entitled to the Blue Eagle if he shQrtens the hours to the
maximum, and keens the "eekly envelope entact. In this case the
employee gets the same weekly wage he received under the union contract
(provided that wage is over the minimum provided for the President's
Agreement). If the employer later attempts to make adjustment, he will
be entitled to -oetition again.

(13) If the petition is denied because the employer signed the
union contract after signing the Agreement, or to evade the Agreement,
he may earn the Blue Eagle only by keeping the weekly pay evelope intact,
Pnd conforming to the maximum hours provisions of the President's
Agreement.

(14) If the petition is denied because the contract is subject to
change or termination at the will of the emoloyrer, the employer will be
entitled to the Blue Er.gle only if he complies with all the -orovisions of
the President's Agreement". (Also see "Contracts (Labor Union)" and
"Paragraph #7, PRA", Aroendix "G".)

E. STATE IWA COMP0LIAITICE DIRECTORS

In the Sprine of 1934, after the PPA hMd oeen extended by
Executive Order, the functions of L'ocal ITRA Comoliance Boards relating
to petitions for exceptions to the PRA were carried on by State NRA
Coioliance Directors, Although many Local Compliance Boards rere
retained after the establishment of State Directors, they acted for a
time only in an advisory capacity, without authority to grant exceptions
in the first instance.


9819





-49- .I


F. VOLUME APTD DISFOSITIONT

1. FtI .n TO ESTA3LISHLElUT OF LOCAL NRA COMPLIAN1CE BOARDS

Although the following figures are anproximate, they cover very
closely the volume of exceptions handled by IiRA prior to the establish-
ment of Local NRA Compliance Poards:
r
Approved (Usually as a result of personal interview) 100

Denied (SDecial consideration required) 500.

Denied (Intervenin- Codes, substitution granted,
deficiency in petition, 7 (a) cases,
child lnbor cases) 24,200

Sent to'Local NEA Comrliance Boards 1,200

Total number received after approval by
Trade Associations, etc., 26,000

2. AFTER ESTABLISHMENT OF LOCAL NRA COMPLIANCE BOARDS

Denied (Intervening Codes, unanimously denied by
Local-.Compliance Boards, termination of
period involved, 7 (a) and Child Labor
Cases,) 2,919

Denied (Special Consideration required) 697

Approved as presented 445

Approved after modification 1,014

Fending May 28, 1935 ____ 2

Total received from Local Compliance Boards and
State Directors, 5077

XI. GOVEFVME!IT CONTRACTS AITD LOA'S .

A. AWARDIMNG OF GOVEF.^T CC-iTRACTS OR LOADS COTIIGEKT UPONUP0
CO'IPLIA1'CE WITH PRA OR Ar k-uVED CODES'
1., EXECUTIVE ORDER #6246 ..

"(1) Contracts for Supplies. Very 'contract entered into
within the limits of the.United States -- by the United States or any of
its agencies or instrumentalities ------ except as set forth in the..
proviso under -a.regranh (a) below, shall provide end require that (a) The
Contractor shall comply .----, if there be no approved 'code -- with the
provisions of the President.1s Reemployment Agre.emdn.t --- 'without regard
to whether the'Contractor ishimself'a party, to such code or agreement --
(b) If the Contractor fails to comply wiAth the foregoing


9819
















IfA

I. ,



i: i


, :!',









)j
1 : "; s' i
,i'":^"



















W 1
Al-T



L1
!-.j.',
', [.i,











!,'I
L ,.;%,'.i



,'4





is



i-',














II
ii 1 :





'.




rrt


-50-

provisions, the Government may by written notice to the Contractor
terminate the Contractor's right to n-oroceed with the contract, and
purchase in the onen market the undelivered portion of the sunnlies
covered by the contract, and the contractor and his sureties shall be
liable to the Gvernment for any excess cost occasioned the Govern-
ment thereby.

(2) Disbursing Officers. No Disbursing Officer shall
be liable for any nayment made under the provisions of the foregoing
Act (Public ITo. 67), or any Executive Order issued under Authority
of that Act, or for the unobligated balance of any overpayment
involved. '

Executive Order :46246 cited above, in part, specified that
Government Contractors may have their contracts with the Government
terminated in the event they failed to' comn-oly with the n-orcvisions
of the PRA, if there was no annlicable code a-oroved for th6ir
industry. In Executive Order ',L6646, dated March 14, 1934, the
President, by virtue of authority vested in him as President of the
United States specified that:

2." EXECUTIVE ORDER #6646

11"(1 (a) All invitations to bidders hereafter promulgated
by or in behalf of any executive department or independent establishment
or other agency or instrumentality of the United States, including
Government-owned and Government-controlled corporations-----, shall contain
a provision to the effect that no bid will be considered unleLs it in-
cludes or is accompanied by a certificate duly executed by th. bidder-----
if engaged in any trade or industry for which there is no ap-Droved code
of fair competition, then stating that as to such trade or industry he
has become a party to and is complying with and will continue to comply
with an agreement with the President under Section 4 (a) of the National
Industrial Recovery Act. (.Note: The PRA was promulgated under Section 4
(a) cf the NIRwA).

(1 (b) NTo bid which does not comply with the foregoing
requirements shall be considered accepted.

(1 (c) All contracts and purchase orders authorized by
any agency of the United States shall contain a provision to the effect
that the narty or parties awarded any such contract or purchase order
shall comply----if engaged in any trade or industry for which there is
no approved code-------, then, as to such trade or industry, with an'
agreement with the President as aforesaid;'and that the United States
shall have the right to cancel any contract for failure to comply with
such provision and make open market purchases or have the work called
for by the contract otherwise performed, at the expense of the Contractor.

(I (d) No agency of the United States and no Government
Contractor or su-oplier shall hereafter accept or purchase for the oer-
formance of any contract or purchase ordet or enter into any subcontracts
for any articles, material, or sun-olies in whole or in nart produced or
furnished by any -oerson who shall not have certified that he is complying
with and will continue to comnly with------ in case there is no avDDroved
code for the whole cr any portion thereof, then, to that extent, with
an agreement with the President as
9819







Bforospid.
(1 (P) The foreroinr rovisicns of this ordOr shall like-
wiso awoly to all. ontr-cts Pnr nmrchps- orOers authori"'d bv an', State,
Municipal Coroorotinn, Local Subdivision, Person or Coroorntion, in
donnocti-n -ith projects carried o-'t or to bp arri-a.d on, wholly or in
part, "-ith funds loan-c. or ,r.fnt-d bry nnv oanc'- of the United Stat.s,
snd all rtontr.cts onrl ngro-ints for the"makinpn of any such loan or
grant shall Pontain a, orovision roauiriny tha State, I'municioal Corooration,
l6cal S'bdivision, P.rson or Coroorati-n ren.iv-ing such lon or'grant, to
con ly with the provisions of th- order Prvidd,------ ------------ ,

(a) Any r -rson falsqclr certifying .as to corrroliance
as aforesaid who submits 'anrf such -oro-oospl, bid., contract or subcontract,
or accents any -our'.hpsa ord.r, may be punished as provided in Section
10 (a) of thelIMA---" .
3. PUBLIC ,WORKS An IGmSTRATLIT "G NATIONS (Pt7A BULLETIN '5l)

"(a) No bid -i'l be rqccived form any contrPctbr---
---if thoro be no such ao'.rove.' code of fair comnytition who has not
signed and complied with the rovisions'of 'thl PIA.

(b) No subcontrapt shall be lot..to, any subcontractor
-- if thorp bp no acDroved cod.---, -ho has nmt sig-ed and. coTrolied.
with tho PRA. ....

(c) Only articles, mptqrials pnd suoD-lis -oroducad
undLer---- the PRA sh.ll bo us- by any contractor or subcontractor .in
p.rformanc- of'any work covered by thq bid., exceot _h.n .th4 contracting
officer c-rtifies that this r:quirpli.nt' is not in the Dublic interest or
that the conso..-'ent cost is unrs na-,.bl.e, .

B. RELIEF TO GOVEImPTITT Ctl.TRA -TORC

On August 6, 1973, (NBA rle.pse, T200) the Prasident said: "It has
beon bro-ight to-. my attention that in many instances hardship may be imposed
ioon employers who eign the PPA--, oh have previously made contracts
with the Governmont to suTonlr' goods or services atfixed riches which may
be inadeauate in view of incroso9.a costs caus-d'by shortening hours or
increasing -ages in compliance -ith agreRments or codes.

The policy of th- Adfinistratirn was stated in the statement which I
Issued unoon signing the NIRA-.- This policy "as car.ri-d forward. in the
provision of Pa-pgraoh #12, PEA, under which those making this agreement -ith
the President also agr-ed to 'make an acoro-priate adjustment of said fix-ed
Drico to moot ony incrapss in cost "caused by the seller having signed the


The United States Government as a buyer of gods should .be, killingg
itself to take action similar to that recommended to nr ivate buyers. Therefore,
berevar adjustment can be made under existing la-, I shal'I recommend that
they be made under authority no- possessed by the Executive D-oartnmont.
Z shall recommend that tho next Congress, meeting in January, 1934, take
bCtion giving authority to the Executive D-cprtments, und-r such safeguards
r819







as the Congr-ss may sanrove, and making any necessary arorooriations to
nrovid. for re.comnPnsing s"eh buyers '-lho have in good faith and "hole-
hearted]y cooperqtee with the Administrntion nf th' NIRA, and as a result
thereof sho-ld equitably. be allowed nn increase in the Drices of goods
furnished in the interim in acnordance -ith the terms of -cntracts
entered into "ith the Government prior to J,1ne 16. 1933.

Because this same situation exists ',ith r.egord to employers '"ho have
previouslb- made cont-pcts 'ith States, Muniiinalities, or other local
Governmenrits, I further recor-end to tIhe Governors of the various States and
to executives of Counties anid M-,miciTjaL Units tht they take similar action
to allo-' for eouitr+ble ajutrnmnts in such cases".

I. ACT PROVIDING RELIEF TO GOVrTIlTh2T COMTTFACTURS.

On June 16, 1934,the. President fulfilled his nTrom'ise of August 6, 1933
in arsooroving Public Act No. 369, aunroved by the 73d Congress -"hich -orovided
relief to Government contrp-tors -,hose costs -f performance were increased
as a result of comolisnce -ith the NIRA a-onroved June 16, .1933, and for oth3
nurposes. In this connection it sh--.ld be T)ointed out that such relief -as
authorized onl.', in cases -here cornoliance -ith the NIRA -as established and
i-here contracts -"r- entered into "ith the Unitee. States orior to August
10, 1933 (see Public Act)No. 369, porov-d June 16, 1934, A-nendix "H".)

XII. EITFORCEWIEITT -F THTE PPA.

A. PUBLIC OPITIOiTN.

In signing the NIRA, the President said: "This la- is a challenge to
our "ho] neooDle. There is no Qoo,-r in America that can force against the
oublic-,i'l. such action as -'e require. But +ther is no ground in America
that can withstandd the force of an arbused :v.ublic opinion. This great
coo-oeratinn can succeed, on1v if those '-'ho bravely go forward to restore
jobs have ag-ressivo Dublic sunnort and those who ] g are made to foel the
full -eight of public diso-.roval." (NPA Rulletin No. 1.)

In agenernl statement of policy and -ouroosp of the PRA signed by
General Johnson and Secretory of Com'prce Ro)r', Chairman, Soecial Industripl
Recovery Board, rn Jul"- 20, 1933, it '-as stated: "Thereq is no force here
exceot conscience and opinion. This is an a.n-,'l to those good instincts
of our -oeonle rrhirh have never been besoght in vain. This is a test of
patriotism. It is the time to demonstrate the faith of cur fathers and o'r
belief in ourselves. We are a reo-onle disciplined by de9toracy to a self-
control sufficient to unite our n-ar-hssing nower --. our labor no0,r,-- our
management no--er to carry out this great National rovenant -ith vig6r, -ith
determination but with calm composure and fDrir -olay which should always
mark the American way." (NIRA Bulletin 43).

This -olicy of basing enforcement of the PRA solely uoon public opinion
"as followed during the entire period of its existence by General Johnson
and the Administration.

To enable the -oublic to do its part, the NIA emblem kno-n as the "Blue


9819




-524-


Eagle" was designed, printed and sunnlied to all signers of the PRA union
presentation of a signed certificate Cf compli:Lnce with the Agreement.
Any person obtaining the 31ue Engle in te inrmnner mentioned was permitted
to display the emblem so long as he continuied to comnly with the Agreement
and by, so doing he indicated to thle public that he was cooperating with
the Administration in its effort to solve the problem of reemployment
and therefore merited support of the public for his business.

B. SUMREMDER OF THE BLUE EAGLE

By authority delegated to the Administrator by the President in
Executive Orders #6173, #6205 and ,63?37, General Johnson specified that
"when,.in the judgment of the said Administrator or his duly authorized
representatives, any person has failed to comply with s iid agreement or
code, or when any person has imnnronerly obtained said emblem, such
person shall surrender said emblem on demand of the said Administrator
or his duly authorized representative, .nd shall not thereafter display
or use the same without the written permission of the said Administrator.
Any person who violates any of the foregoing rules and regulations may
be punished, as provided in Section 16 (:) of the YIRA, by a fine not
to exceed Five Hundred Dollars (o500.0CC) or imprisonment not to exceed
six months, or both." (Rules and Regulations concerning Dis-olay of
1.RA Emblem, October 17, 1933).

Reports from PEA field agencies an6 complaints received by ITRA
alleging non-compliance with the PRA, indicated that during the period
of the President's Reemployment Drive (August and Sentember, 1933),
especially consumers and gonerelly s-.ealk.ing employers themselves in most
instances were ardent in their desire to see that the Agreement was
observed; inquiry was made upon purchasing -goods and if there was any
doubt as to whether the establishment was nrerating under PRA provisions,
patronage was refused. The public considered violation of the Agreement a
crime and they felt that nromnt, vigorous criminal action should be taken
against the offenders.

The belief that criminal action should and would be taken against
violators of the PRA was later enhanced by a misleading statement re-
garding "Rules and Regulations Concerning Disnlay of NRA emblem" incor-
porated in IRA release 11239, dated October 17, 1933, which said
"Violators of the PRA today face not only the loss of their Blue Eagles
but also, as a result of an Executive Order issued by President Roosevelt,
the same penalties fines or imprisonment or both provided by the NIRA
for violators of per nanent Codes of Fair Competition." In many cases the
Dress oonosed to the Administration and in some cases those favoring the
Administration featured headlines inferring or stating tiat the Administra-
tion would subject PRA violators to fines and/or imprisonment penalties
of the NI.RA. This made it extremely difficult for the Administration to
explain to comnlainants, the public and cooperating employers, that en-
forcement of the PRA rested solely unon removal of the Blue Eagle and
public opinion, and as early-as the Fall of 1933, public opinion in sunnort
of the PRA began to diminish.

The inability of the NRA to handle nrcmntly the great volume of
complaints alleging violations of the PRA because of the early centralized
authority for removing the Blue Eagle delegated to the Administrator and

S9819






-54-.



>.' y.[ his pithorizcd rcores:ntetivw the National Conmolianco Board had a further
....' demoraliz.in- jnflu-nce rn public opinion. It is ouite possible that
!''ij; denentra]lization of this authority to Stptc NRA Com.ipliance Directors
at an earlier dpta might have material ascistcd in maintaining Public
rsuo-ort of the PRA. .....

S, ~C. TYPES OF VIOLATIONS AID DISPOSITICITS

1:i 1. MIITIIUI'T 7AGS Am T'T 7AX11aJfl HOURS (PARAGPRAPHS 2, 3, 5, 6, PRA)

I .i (a) Restaurant:

ii (I) Ho,-.,-s -ork4d 49 to 56 hours n0r weak, male
[9,l and female.

i '-.' PRA MaxiTntn Hours applicable Female 48, male
., 54 hours -per week.

i" (2) Wages raid meals'and room only (no cash) to
''"i meals, room, laundry and U4o00 opr "e=k.

'ai~P PRA Minimum Wages aoplinable 26 cents per hour.
".: Permissible to deduct a maximum of $3.00 -Der wr.k for meals provided
^ 1,such was the practice -orior to June 16, 1933.

,ii -(3) Disposition:

i;' *Violations Ror.orted September 6, 1933 Blue Eagle
I ordered surrendered December 10, 1933.

i' () Bakin Industrv

II: (i) Hours -orked up to 12 ho'-rs oer day, 84 hoiirs
per week.
1 ,
(, PRA Maximum.H1ours ao-licable 8 hours 'oer day, 50
;..: hours per week.

r^ (2) Wages raid t1F to $?0 prar week,

;F PRA Minimum wages aonlicable 30 cents to 40 cents
i, ..^ -opr hour.
T i:!E ."
pr r(3) Disposition:

Violetirns Reported February 14, 1934,
'U:! respoondent prosecutee Febr-.ary 26, 1934 under Pennsylvania State Labor
'.* ^Law for violation of Child Labor Act. Blue gF-le Prdered surrendered May
?. 15, 1934.

~2. COI.TPENSATICN FOR EMPLOYIIENT PARAGRAPHH #7, PRA).

1 (a) Baking Industry:
9819
[ ,J l






(1) Union contract in force called for a 48-hour
work week, time and a-half fur overtime.

(2) PRA called for a 1--hour work week (machine baking)
time and a-third for cvprtime emergencyy).

(3)r.Respondent proposed to decrease work week from 48
to 44 hours, to ingrcise wnge rate on an hourly basis
by 5 percent, and reduce overtime compensation to
time and one-third.

(4) Interpretation No. 20 of Paragraph #7, PRA -- "Para-
granh 7 prevents the reduction of compensation in excess
of the minimum, whether it is paid by the hour, day,
week, or month."

(5) Disp:sition:

October 3, 1933, complaint filed by local bakers
union.

October 31, 1933, Denver Local Compliance Board
recommended that the resmondentls Blue Eagle be ordered
surrendered.

Subsequent to December 14, 1933 the Labor Branch
Compliance Division in recommending to the National
Compliance Director that he discuss the case with the
respondent's attorney stated that "according to tho
strict letter of the PPA and approved substitutions, the
complainants in this case are right. An effort was made
about the time this case arose to get from the General
Counsel, a statement as to whether Interpretation No. 20,
PRA was to aopply rigidly in all cases, even in those
where tho wage rates were in the higher brackets. If
silence may be taken for consent, Interoretation No. 20
applies throughout the whole scale of wages."

June 15, 1934 -- Case filed in closed file pending
possible resurrection, as the Baking Code was approved
and had become effective, and the National Compliance
Board had previously ruled that it would not order the
surrender of the Blue Eagle for a PRA, violation after
an aoplicable code had been approved.


9819







C'iAPTITR IV
ADn;I1;IST:iATI-:',i OF TILL PI.SI-.-TI'S Ifli:-PLOiai-T AGRFEIK.T

I. MLADiLART-S (WAJHIiC-TO,'D. ,

A.. DBUI AGLL DIVISIO1 > IRAh (Auguo.t 1C, 1933 to October 26, 1933)
As previously mentioned., General Johnson on or about July 22, 1933
appointed. C-neral Thomas S. Hamnmond, Executive Director, President's Re-
emploinient Program to develop anc' prc.,'.iulgte its .olicies. General
Hammnondi on Au-,ust 10, 1933, -.pnnounced..that the. designation of his office
would- be "Blue Ea-,le Division, I[A". Confiruin,; verbal instructions
previously -iven, General Ia .mon&, on AuQ.tst 23, 1933 announced that the
newly establishe. B3ue Lr-ngle Divisicn, IIA was charged with the adminis-
tration of !TiTA Bulletin #3, "The Presidenit's Reemployment Program",
dates Jul- 1'0, 193, ii, vi'hic-i 'as incorporated the "President's Reemfloy-
ment AFree,.ent." (Also sre "Blue agle Division, IFRA", Appendix"B".)

Prior to the establishment of local i1EA com-lience boards on or about
September 1, 195U, the efforts of the I1ThA were directed to explaining
and indrLcii- cmoloycrs to si,jn the PRA, and little attention was paid
to aC'sinistratin.. Vith the establisluient of the Blue Eagle Division
ITRA, c n-miber c-f sections were created for the purpose of carrying out
prelii.iinar;- administration functions.

1. LL2CUTIVL SECTI0i:

T'e ZxecLi.tive Section, Blue Eagle Division, N2A was created to
clear all a4C;.iinistrative matters .res;rding (l) decisions of pclic; either
within t-ie. division or from the PRA Policy Boerc., (2) requests fnr ex-
penc(it'.res of money, (3) .ersoni-.el, ( t) contacts with other governmental
department, .(5)', liaison contact v ith the 26 District Offices of the
Depart;.uent of .Conii,-icrce (3.E.-D ... ) #1

2. .JJCOVcqY YARDS SZCTIOI'

This Section was created to maintain contact with the field thrur
state n-td Dlistrict Recovery Boards and ..Councils and Lccal INBA Committees
(B.2.D.i;. -1 anc #10).

3.. .COI'.LA-I.TS S2CTICIG

To hadle all complaint,; fro-m the ficld, as" affecting operation of the
PRA, includin-g eomlai--t relative to us.c of tie 31ue Eagle,a comr)le.ints
section wvas establishcQ in the Blue 2ale Divisicn. Co:riplaints relative
to the ri ,ht to produce or ,)ro7LL-.ction of the insi-,nia were handleC. b, the
Insi.:nir Section (3J.E.D.i,. #1 ndl r-10)..

4. iORC-AII ZATIOI (Seto- uber 3n, 193)

PuL-.rsua-nt to 1MP Office Order r3, 3epter.ober 1;, 1933, the Blue ep:le
Division, 1URA, 1ir. FrarJ-- Healy, Chief proc.Fed_ to consolidate and re-
orgr .ize the Division to ac.-omoCa;r itself to the second phase of the
Blue 2rp le Co .p-ign. To effect thiis reor anization, all Sections were
abolisheC., effective September 30, 1933 and there remained only one main


@819





-C7-


function of the Division the ..dninistr.tion of t]- P1A thru Loca.l Ti'A
Cnimplirnce -'r-,ards, which inclvi1-.d a su'G"vi.;ion of State and District )Boards,
the creation of Local liRA- Cr::1ii-'nce ir .rds, the hanl.l i.n; of r-crj:,..ie.ndatiins
and re)corts on coin ,lnints *..(, petition cc.'..i.'' from C iw.lianci Boarde Ond
the i.iter)retp.tion of the PRA and various substitutions thcrpundpr
(B.E.D. iU. i;). Alkr. see "Blue Xa,,le Divisicn, Y.,%.A. 'eor-anization,"
Appenr'.ix "C"11.

Although all s':ctions of the Blue j le Division, lPA were abolished
en September 30, 1933, the or-,nch of the (Aivisi' n hancliL, PRA c.iplai.-ts
was referred to for convenience as t-l, co.p,>-ints section whichc, was te.c
successor to the original complaints. section. In addition to heaiC.lin-
comolaints received direct from the complaiinnts, complaints referred by
thep Wi-iite 1I,3urso, and co'.iplAints which acc-...panied questionnaires returin-
ed to the Census B'reau; this Section handles PEA craj.r .; received from
Locol i"AA Coipliance Boards, which they had been unable to adjust.

5. PROCEDUME

(a) Comp-laints NTot Considered by Local Compliance Boarc.s.

Comn--lints received c'irectly by the Blue ,'Egle Division were either
referred to Local 17RA Compliance Boards for investigation and recomnmendation
as to their disposition, or a letter was addressed. to the complainant
advising the-t the allegations .resented did not constitute a violation
In -riime c,-ses the cr.mplainant was advised to secure additional evidence
to support his allegations of non-crn'pliance and to refer the matter
to hi-. Local NRA Compliance Board.

(b) Cm:plaints Co:.1,idered by Local NRBA Compliance Boards.

Investigated c-scs involving; alleged norr-compliance with the PBRA
received froi.. Local Coripliance -.-ards were referred tn trained analysts
for anal:'zing and further recommended findings. In considering these
cases the analyst vas required to determine whetherr or not the Local
Compliance Board had followed in detail the procedure for handling PIA
complaints as outlined in IRA Bulletin -5, and to determine whether
or not in his opinion the allegations constituted a violation of the
PRA. In se@me cases, because of lack of evidence, the cases were returned
to the Local Compliance Board or the complainant or respondent or both
with a request to suoply add-itional pertinent information and data.

In analyzing PRA cases the analyst was required to fill out a detailed
complaint analysis form in which was incorporated pertinent information
deemed necessary to establish a violation. These forms provided for the
reco,hienc.ation of the analyst as to the nature of action to be taken by
the ITatio-nal Cimpliance Board. Ench case was considered by three analysts,
of i'hich the writer was one, and then referred to the Division's 3hief
Assistant Counsel, Chief Counsel and the Chief of the Division before
presentation to t>.. 'Tational Compliance Brard for final action.

6. T-'J,1I-ATION`(Cctober 26, 1933, Office Order #40)

On October 26, 1933, the reorganized Blue 72afle Division, IlA becoi.ie
the Blue 2agle Branch of the Compliance Division established as of tht date.


9819




-58-


B. CO12LIAiCE DIVISION, 1TA (October 26, 1933 to August 29, 1935).

As previously mentioned. tl.e Blue 3&.gle Division, !TRA, became the
Blue Eaglo Br:nch of the Cornli.ace Division, NRA established on October
26, 1933. The. Blue Eagle Branch, Comn1i..nce Division continued to
a.dnminister the PRA until.iIoyember 24, 1933 at which time it was amc:.lga-
mated .and consolidated into the Labor, Tr-de Practice and Administrz-
tivo Branches of the CorToliance Division -ursuannt to 31RA Offi'ce Order
#45.

Following the a.m-lga.mation and consolidation of the Blue Ea.-gle
Br-nch, administration of the PRA vwas handled by the (1) Labor Bra.nch,
charged with handling complaints of violation of PRA l-bor provisions
and (2) Trade Pr-.ctice Bra.nch, cha-rged with handling compla-ints of
viola-tions of all provisions of the PRA other tha.n those involving
l?.bor provisions.

On April 12, 1934, the personnel -anid duties of the L-.bor 2nd Trade
Practice Br--.nches were -bsorbad by the Analysis Br-nch, Compliance
Division established on tlr.t dr.y by iLRA Office Order 785, a.nd from
April 12, 1934 to M.y 27, 193d, .dmianiEtr-tion of the PRA was h-ndled
by the Analysis Br-'.nch, Conipli-nce Divisio:, ISRA, through Local KRA
Complia.nce Boa.rds and St.-,te NRA Cotpli-nce Directors subject tj approval.1
of the Compliance Council, iTRA 2nd the Chief of the Corpliance Division,
1TRA.

The procedure followed, in hndLling alleged viol-'tions of the
PRA, by successors to the Reorg-.nized Blue Eg&le Division, NRA was in
the mr.in the same as that followed by tt;e Blue '3,cgle Division.

C. ITATIONAL CO0LWL-LICE BOARD

With the establishment of the Na.tional Comoliance Bo-rd, NRA on
October 26, 1933 (Office Order 7140), the first real efforts were made
to enforce the PRA. As mentioned under "Enforcement of the PRA" in
Chapter III, enforcement of the FRA rested. solely upon public opinion
and removal of the Blue .a-gle insignia in cases where viola..tions of
the Agreement were established to the satisfaction of the NRA Adminis-
trator. In establishing the I-tion-al Compliance Boa.rd, Genera.l Johnson
st-.ted that its duties were to undertake further attempts at adjust-
ments, recommended exceptions and remove the Blue Eagle in cases of
complaints referred to it by the N-ational Compliance Director.

Upon reference of cases of alleged violations of the PRA to the
National Compliance Be-rd by the 'National1 Compliance Director after the
complaints had been an-lysed and: digested by the Conrrli-nce Division,
thL Board set a date for hearing andi so notified the respondent advis-
ing that he would be give2i a-n opportunity tod be her.rd in person or be
represented by counsel or both, -.although this wa.s not necessary. After
hearing the case the Bo:.rd, in the event the members felt the data sub-
mitted warranted such -.ction, r-.commended that the respondent make
certain adjustments .and. if such .adjustments were not made with-ln a
specified time, the respondent wvrs ordered, by telegranm over the Ad-
ministra.torts signature to surrender his insig.nia to the local post-
master. The loca..l postmaster was a-.lso advise-d of the Board's a-ction,


9819




-F 9-


however he wr-.s not rcqu.-stcd to 0.-, ,. or t '.- -n.,,' action tov-rd. obt.in-
ing the 31u l. The rbov- irocepurj in .linietcri. th- PRA '/-.s
follow-d by the Ac'visory Cov.:cil, Cc anli^..ce Divi .ictu, the Comrlimnce
Council, TIRA -.nd th.2 R "ir.v.'l Councils, succssoir". to thi i1.tij *
Compli-nc- 3o-rd, exccept ord.: rs for ro)Iovin; th;-. 31ui. E'\.;le in c-sL-s
he-.rc. by Reion".1 Cotuicilz, xhich '.ent out over t' e zi.j.r .ture of the
Region.l Dir:ctor. A-..-.ls i. nst r.!nov 1 of tA. ii iani2 were hc-rd
by the 1IRA In&.ustriril Appc," is Bo!-rd.

D. ADJ'UST..::1'T COF ?' C0i.L.I:T:S "-D ?:Z'2l.TICV 07 Tfi; :=LU: ZAGLE.

Restoration of the Blue a :le inri iii a wts continent upon ap-
plication by the respondent and a satisfactory adjustment of all complaints.
Befurc a corr)laint vwas co.isidered adjusted o0 the 7luo 71hgle was restored,
the respondent was required to fulfill the following ; requirements:

(1) Reinstate any or all employees discharged for re.gistering
complaints.

(2) Make full restitution of blck v'nges due, calculated on the
basis of the correct '.aLe sEecified in the ??A, in cases where a lower
wage had bee.. paid than that provided in the Aor.c.nent. If necessary,
the respondent was permitted to male such payments in installments pro-
vided he g.ve a promissory note or ju-':njnt note or hostedd other forms
of security. In cases where there was some question as to the ability
of the responde-it to pay, the case was referred to the State Adjustment
Board for their consi,.errtion with a view to compromising at a lower
figure in the event the employees would not obtain anything if such a
compromise was not made. Where it was impossible to secure evidence as
to the exact amount due the crxlibility of the co..rplainant and respon-
dent were weighed. It w'.s pointed out that any civil rights the employee
had regardin- p.-.it of back wa.eos were not prejudiced by the State
Adjustment Board's :ap;roval of less than 100` restitution.

(3) As a rule the iTational Comoliance Board required that at
least time and one-third be paid for all time worked in excess of the
maximum hours specified in the PRA or ap-oroved substitution thereto
unless a definite rate for such overtime was provided.

II. FIELD

A. LCCAL JI;TIC:I "2.S

In a radio address, August 23, 1933, General Johnson announced the
second phase of the President's Reenmloyment Program which he character-
ized in the following language, "The next effort iil be to mop up the
abuses and all the energy that has been expended in the first month of
explana.tion will be turned on this second task of cleaning up chiselers."
The need for this second phase had been driven home in many ways con-
sumers aud er-)loyors forwarded thousands of complaints to INRA, charging
noncompli?.nce on the part of the PRA signers; telegrams and letters were
forwarded to iiRA by Local NIRA Committoes from all over the country re-
questing among; other things, authority to (I) or-nize Arbitration boards,
(2) act as they deemed advisable to enforce the PRA or (3) remove the



9819




-60-


Blue Eagle in cases where the siGner had failed to comply, or was delay-
ing comnoliance, but meanwhile was displa:,ing the Blue Eagle.

On Seitomber 2, 1933, General Hammond announced that deliberate
wilful "chiseling" would not be tolerated, that it :was felt the time
had come and it wns olannad to set up loc.ml Mediation Boards in'each
community in which there was a Local 1TRA Committee. It .was at first
contemjplated that all complaints against consumers or employers would
be registered with Local M.ediation Boards for the muroose of inducing
compliance by education, conciliation and mediation as far as possible.
(B. E. Letter #6). The life of Local Mediation Boards as such was of
short duration, as the name was changed to Local I.RA Compliance Boards
on September 11, 1933.

B. LOCAL IRA C01PLIA7CE BOARDS (September 11, 1933 to June 15, -1934)

1. ORIGIN

In a letter dated Se-otember 11, 1933, addressed to I1A Local Committee
Chairmen, General Johnson stated "Wie must secure 100, coinpliance with
the PRA by all employers novw under the Eagle. To accomplish this speedily
and effectively, you a're hereby requested to establish in your community
an 1IRA Compliance Board. *

2. PURPOSE

The duties of Local 1TRA Compliance Boerds were education concilia-
tion and mediation in handling (a) complaints of noncomplianc- with the
PRA; (b) petitions for exceptions under Paragraph "14, PRA (See "Excep-
tions to the PRA-Local ITRA Compliance Boards"); and (c) petitions for
permission to operate on the longer hour schedule of existing union
contracts, instead of tle maxiimaz hours of the PRA (See "Exceptions to
the PEA Local ITPA CoiTpliance Boards"). Local ITRA Corpli-nce Boards
had no powers of enforcement except upon express directions from Wash-
ington, they were local representatives of the URA Pnd were not affilia-
ted with any other organization.


9819






3. ORGAIIZATIOi.


In or.:anizin., a Local NRA Crmr-iii n.ce Board, the Local NRA Couii u ttee
Chairman .;11 instractrl'. t-):

(a,) Conivene iixiedirtel, aLd act as chairman of a n,,riinating coi-,.ittee
coinm.sOL of iindivii'uals repre3entiiL the interests of lab),.,r, trade., indus-
try an,:L the cons'Iucr, for the purpose cf naming n,,rs of the Coi-
pliance Boards. To secure the proper representation the heads of the
folloving orjrni.ation, wore apgointerL mcrimb-rs of the nominating coi.mittee:,
Chamber of Co:.r.orcc, Rtail Mer:..a'ts Association, I.Manufactu'ers Assoo-
iaticn, soiae representativee lrbor organisation, Federation of-.Womenlis
Clubs, and the !ocal 3:.r Association.

(b) Upoi convonin: the nominating committee, the Chairman advised
them t'irt they h-d been called together for the sole duty of nr',inn- the
6 members of the Local kowplianne Board.

If it was deemed advisable and more expedient to form a county con-
pliance borrd, such was permissible jrcvil&e thc consent and cooperation
was obtriieod of all the other towns in.'the county which had previously
been requested to form Oo:.poli-nce Boards.

4. .2PFI.SA'IOI

(a) Er.iloyee in Industry.- A truly representative employee in inCuas-
trial labor, "if there wv'as an industry in the community, elected f4 leadership, intelligence and standing in uhe community and among his
fellows. ,.

(b) -LFr-loyee iIi Retail 'or Wholesale Trade A truly representative
employee in retail or ,-'Jhoesale trade in the community.

(c) Employer i- Industry- A truly representative industrial
cmpluyer, if there was an indr.stry in the community.

(d) .I.ployer in Retail or Wholesale Trade A truly representative
employer in the retail or wholesale trade in the community. Both em-oloyer
members should have been men who had been'-leaders in the IM, movement.
(; Ccns'umer A representative of the consumers ia the coi,-r.ni ty
prefrralblty a woman with no direct interests or connection with Trade
or Ir-c'. :-i other t.- those of a consumer.

(a ,r A laxr in 7. ood stand;i .I with the -State Bar Associa-tion
and i: ti e moiinmity, selected for his "'leadership in-the profession.

5. PJAU3;:T CI&IR:L1:

As soon as the apriointment of the Board was completed, the Legal .
Member, as C.',.i r.a in pro tern, was notified and instructed tQ. call the first
meeting of. the Board immediately, for the purpose of naming a seventh
member as permanent chairman. The-' permanent chairman was required to have
administrative and organizing ability and mature ju-xac.ipnt, he should. enjoy


9819





-62-


the respect of the entire coi.m.,unity, and wa: required. to be fr.ne from any
connection political, financial, or otherwise which would cast an- C.oubt
on im-oartiality of his decision. It was further suggested th[t retired
leaders of coi.iriercial or professional life be considered for thiis nomin-
ation. Imi.-Lediately upon completion of the Board organization and appoint-
ment of the permanentt Chairman, he was instructed to so notify the Executive
Section, blue Eagel Divisiocn, NRA to enable them to furnish the Board
with detailed instructions with regard to procedure and confirmation
or modification of the nominations. T'he-term of appointment was originally
for 45 days. Approx-imately 4100 L-)cal Compliance Boards were organized
and functioned.

3. NATUREE.

There was no provision made for allowance of salaries or expenses
to Local Corrrmpliance Boards by the Federal C-overnment other than the
extension of the franking privilege for all official coia.iunications.
On October 21, 1933, General Johnson ac'.vised that arrangements hadl been
made with the Federal Emnrloyment Relief Administration so that relief
workers could be supplied to Local Compliance Boards upon request. These
workers were to be paid from the er.ergency relief fund (C. B. Letter 78).
Because all State a:d Local CWA projects expired on March 31, 193--, the
use of relief workers was discontinued. In the main Local ITRA Coapliance
Boardcls functioned without FTderal aid, and although they did a remarkable
job es a whole, better results might have been obtained if they had been
properly; staffed and allowances made for salaries and expenses.

7. rICODUmL FOR HA1IDLIiC, C0ijPLM.TTS OF NO1TCO1TLIALICE WITH TL. PRA

Local IMA Compliance Boards were not councils of inquisition or
compulsion. Their function was primarily to be rof service to all ei-
ployers, vho had signed the PRA, by keeping them informed of tie meaning
of the Agreement and the individual employers obligations under it,
As a guide to be used by all Local Cci.pliance Boc.rds in handling complaints
alleging violations of the PRA, General Johnson and the Special Indusm
trial Recovery Board issued the following reLulations, which were publish-
ed ii iTRA Bulletin ,#-5, "Regulr.tions on Procedure for Local NRA Complimance
Boards", dated September 12, 1933:

"(a) Receipt of Comolaints.

(1) All complaints must be presented to the local ITRA Compliance
Board (hereinafter called the 'Boardi) in the Employer's community. All
com-olaincs should be in writing and signed by the person making the
complaint (hereinafter called the 'complainantQ).

(2) The legal member of the Board should be designated as secretary
to the Board and should be charged with the duty r.f r ceiving and exam-
inging all complaints. He should reject all those in which the facts. aa
stated, if true, do not constitute noncompliance with the President's
Agreement, If he is in doubt as to whether or not the facts stated, if
true, do constitute noncompliance, he should request a ruling from NRA
through the Secretary ce the District Recovery BQard at the District Office
on the stated facts.

9819




-63-


(b) Notice to SrryIloyer of Compl'.int.

(1) The Emplo;er should be notified of the complaint. It is
very import-nt that this notice be mnoe in the proper manner. In mnny
instances, mere notice of the fict that a complaint has been 'filed will
be sufficient to induce immediate compliance. The whole tone of any
notification, whether written, telerhonic, or peroonnl, should be that
of assuming that the Emrloyer is complying ond that the complrint is
due to some misundersta$ini, whichc h the Er:ployer can clear up by explain-
ing the situation to a representative of the Board. The employer should
not be given the name of the complinint unless the Emplo:,er requests
it nnd the complainant agrees.

(2) In no event should the fact that a complaint has been
filed against an Employer be made public.

(c) Education.

(i) Since in the notice to .the Emr.lo;'ur the offer is "-ade to
explain the President's Aareement to him, this explanation should be
made at the .time of giving the notice, if telephonic or personal, or,
if the notice was written, by personal interview. These interviews
should not be before the whole Board. The legal member or other member
or representative of the Board should contact the Employer, informally,
for the purpose of clearing up any misunderstanding in the nEmployer's
mind as to the application of the President's Agreement to him.

(2) If the volume of cases before the Board is so great that
the members of the Board are not able to conduct these personal inter-
views themselves or '.'here it is impossible for it to handle all cases
with necessary dispatch, it Tiay be necessary for the Board to expand.
Much of the volume of work on complaints can be handled by appointing
representatives of the Board to contact the Eriployer before the hearing
in an effort to induce voluntary compliance by explanation and concilia-
tion. These representatives should be appointed by a majority of the
Board and operate under the direction of the legal member. They should
be selected for their tact and knowledge of the PRA. Persons with some
legal training should be considered for such appointments. In no case
may these representatives be used as investigating agents. Their function
should be to help the Employer, to understand his obligations, not to
cross-question nor intimidate him.

If the number of cases which have to be heard by the
Board, sitting as a single body, becomes too great, the Board may appoint
seven more members, representing the same interests and filling the same
requirements as me:ibers of the original Board. In great cities it may
be necessary to ar-oint several of these boards. They should operate as
departments of the original Board and should be responsible to it so
that there is uniformity.of treatment,

In any case where the Board is expanded by the appoint-
ment of additional members (as distinFuished from representatives) such
appointments should be reported to NRA in Washington for confirmation or


9819








modification. A duplicate of this report should be- mailed to the. Secre-
tary of the District Recovery Board at the District Office.

(3) The Board member or representative should mnke every
effort to induce compliance by conciliation and explanation. The Employer
should be furnished with copies of these regulations and other official
explanatory releases of ITRA on the President's Agreement. If it appears
thnt the reason for noncompliance is unavoidable hardship, the Emiployer's
Remedy of Exceptions under paragraph (14) of the President!s Agreement
should be explained to him.

(4) If an understanding cannot be reached by this method, the
Employer should be given an opportunity to state his case before the
entire Board.

(5) If an Employer claims that he has a stay of certain pro-
visions because of the frct that he has had a petition approved by a trade
association, chamber of commerce, or other organization, the Board should
check this by contacting the organization. If the organization still has
the petition it should be turned over to the Board. The Board will then
consider it as an original petition. In some cases the organization ma$
have given the Employer to understand that the petition had been finally
approved. There has 'never been any authority from HRA for such final
approval. However, if it would be a seri6u.s':injustice to the Employer to
reverse this unauthorized aprroval, much weight should be givin to this
fact. If the petition has already been forwarded to IT'RA in WTshington
this fact should be im-ediately communicated to the Compliance Board
Section, Blue Eagel Division, INRA, Washington, D. C. Pending a report
from Washington the petitioner ma; continue to operate under the provis-
ional stay.

(d) Notice of Opportunity to Apear Before the Board.

Notice of opportunity to appear before the Board and state his
case shall be mailed to the Employer in a franked envelope. In no event
shall this notice be made public unless the Employer chooses to do so
himself. A copy -of these, regulations and other -aterial mentioned in
paragraph 4 (c) should be attached-to this notice, if the employer has
not already been furnished such material.

(e) Hearing.

(.1) ..The emplQoyer may n)t be forced to anr-ear before the Board.
The Board should keep in mind at all/times that he is there voluntarily and
should govern its attitude toward him accordingly. The proceeding must
not tnke on the character. of. litigation or of inquisition.

(2) Although the Employer may be represented by counsel, if he
so desires, there is no necessity for this. The Employer may not be
forced to answer questions. In fact, it should'not be found necessary
to ask any questions except-as an aid to the Employer in making his
voluntary statement. No questions should be asked except thoue strictly


9819


-64-





-65-


neces;-.ry to determine whether or not the Em- loyer is compl.-iring;. This
hearing should not be taken rLdv!rt-'1e of as an opportunity to pry into
a man's business. The Board has no power to compel the attendance or
examination of witnesses, or to compel a submission of books or other
papers to the Board. If the Employer takes the position of 'standing
on his. constitutional rights' or 'refusing to answer questions because
they might tend to incrimi.,nte him,' it should be explained to him by
the legal member that the President's Reemployment Agreement is not a
statute to be enforced by law but a voluntary individual covenant.

It should be assumed that if the Employer is acting within
the spirit of the Agreement, he will be ready and willing to come for-
ward with a frank statement of his position in order to clear up any
misunderstanding. However, it should be explained further, that a
refusal to answer a question will be. considered contrary to the spirit
of the Agreement if the answer to the question would determine whether
or not the Employer wns complying. Such a refusal should be noted by
the Board in making its report to NRA.

(f) Decision by the Board of Action to be Taken.

(1) All the decisions of the Board should be arrived at by
majority vote. All members of the Board should be given an opportunity
to approve or disapprove all decisions (whether on complaints, exceptions,
or union contracts). All reports should bear the signature of all mem-
bers, who should indicate thereon their approval or disapproval.

(2) The facts, as found, may vary from the facts as stated
in the original complaint. If this is the case and there has been no
decision by NRA on the same facts, a ruling should be obtained through
the Secretary of the District Recovery Board at the District Office.
On this ruling the Board should base its decision.

(3) If the Board decides that the Employer has been complying
with the Agreement, the case should be dropped, and the Employer should
be furnished with a Letter of Compliance, which he may display near his
NRA insignia.

(4) If the Board decides that the Employer has not been com-
plying with the President's Agreement, the Employer should be notified
of the facts which the Board has decided constitutes noncompliance. He
should then be given an opportunity to state that he will rectify the
conditions which constituted noncompliance in his case immediately, and
that he will report to the Boared when he has complied. If after such a
report the Board is satisfied that the Employer is complying, he should
be given a Letter of Compliance.

If the Employer refuses to comply after being given an
opportunity to rectify the conditions which constituted noncompliance
in his case he should be told that the Board is forced to report the
facts of his, case to NBA and to recommend that the proper Federal author-
ity be directed to remove his Blue Eagle, '


9819.







If after an Employer has .received a Letter of Compliance,
a second complaint is filed on the. same grounds of noncompliance as the
first; and the Board, after a hearing finds that the Employer has been
willfully not complying the Board should send its recommendation to re-
move the Blue Eagle to NRA without giving the Employer another chance to
comply and report.


(5) The Employer should be given the opportunity to submit
a written statement of his position to the Board, if he so desires. This
statement must accompany the Board's report to NRA.

(6) If a bona fide complaint has been filed and the Employer
notified of this fact, but the Employer refuses to see the Board member
or representative, or to make a statement to the Board, the Board should
report these facts to NTRA with the recommendation of the Board.

(g) Reports. Recommendations, and Records.

(1) All reports for information and all reports and recommen-
dations with regard to complaints, should be mailed to the Secretary of
the District Recovery Board at the District Office.

(2) The report should include: the original complaint; a
signed certificate by the legal member, or other appropriate authorized
representative that, notice of complaint was given the employer, the em-
ployer had his obligations explained to him and was supplied with these
regulations and other explanatory material, the employer was given a
notice of opportunity to be heard; a summary of the Employer's statement
to the Board, if he made one; which should be signed by the legal member
of the Board, and by the Employer, if he is willing; if the employer de-
clined to make any statement or refused .to sign any statement made such
facts should be noted; and any additional facts which the Board considers
to be the point.

(3) The Board should include a recommendation of the action
to be taken in each case in which a majority has decided that there has
been noncompliance. It should be signed by" all members of the Board
voting in the majority.

In addition to the majority recommendation, the dissent-
ing minority should submit a signed recommendation, together with a
statement of the reasons for their dissent.

(4) In addition to the reports submitted in each individual
case of noncompliance, Progress Reports will be requested from time to
time by the Secretary of the District Recovery Board. For this reason
the Board should keep a record of all complaints, and the disposition
of each.

In all cases where a hearing has been had, and a decision of
compliance made, a record should be kept of the Employer's statement,
and the reasons why a finding of compliance was made.

9819





-67-


In all cases where a finding of nonconplince was made, but
the Employer agreed to comply ir.-ediately, a record should be kept, so
that if the Emplo:-er does not comply, or fails to comply in the future,
his previous record will be available.

(h) Files.

The files of the Board on complaints should not be open to
the public.

8. DURATION

Although the oric'inal term of appointment of members of Local
Compliance Boards were for a period of 45 days, they were requested to
continue until further notice.

According to Executive Order if6433-A, creating. the National
Emergency Council, and as amended by Executive Order 16512, dated.
December 16, 1933, all NRk volunteer field agencies were to be abolished,
effective January 16, 1934. Because it was" desirable and'necessary to
defer the abolition of such volunteer agencies at that time, The President
on January 16, 1934 ordered that the effective date for abolition of
volunteer field agencies be, deferred, and that they should continue to
function until they are abolished by the Executive Director, N.E.C.
(Executive Order if6561).

Upon authorization by the Executive Director, NEC,(*) General
Johnson, on June 15, 1934, abolished the Local'NRA Compliance Boards,
and their functions and duties were performed by State NRA Compliance
Directors.

C STATE IRA COAFLICE DI ECTC OR.

.On January 12, 1934 the National Emergency Council, created
on Novemyrber 17, 1933 (Executive Order Pf6433-A) to coordinate the functions
of the various emergency agencies, announced the names of the State
Directors responsible for NRA Code Compliance within their respective
States. An office was established, under the supervision of the NEC
State Director in each State, which performed along State lines, the
same functions as were performed by District Compliance Directors
(formerly managers, District Offices, Department of Commerce) appointed
,s such by General Johnson on October 19, 1933.

The- work of State Directors of the NEC also later called
State NRA Compliance Directors included liaison work with the Local ITRA
Compliance Boards in each State. The District Compliance Directors
were appointed Executive Assistants to the State Directors and in some
cgses they were later appointed State BRA Compliance Directors.

With the abolishment of Local FRA Compliance Boards on June
15, 1934 the State NRA Compliance Directors were made responsible for

(*) Information received from General Council to the Executive Direc-
tor, 1TEC.
9819






-68-

the Administration of the PRA. Complaints arising under the FRA were
h;indled in the s':me manner as those arising under approved codes. Petit-
ions for exceptions from PRA provisions were in most cases submitted
first to the proper Local Adjustment Board for their recommendations,
although this was not necessary, however, the excepted provisions did
not become effective until the Local Adjustment Board's recommendations
were ar-pTroved by the State Director. As in the case of Local Compliance
Boards, final decision on all petitions for exception from PRA provisions
rested with ITRA in Washington, and all such petitions were to be submitted
to Washington with the recommendations of the Local Adjustment Board if
any and the State Director.

In some cases FiA crnses were heard by the State or Local Adjustment
Boards or both before being referred to Washington for final action, al-
though this procedure was not required.

Violators of the FRA were subject only to the penalty of removal
of thL Blue Eagle by the National Compliance Board and its successors
the Advisory Council, Compliance Division, NRA; the Compliance Council,
NRA and later the Regional Councils. State Directors were never author-
ized to remove Blue Eagles for PRA violations, nor were they authorized
to refer PRA cases to U. S. District Attorneys for prosecution.

D. REGIONAL ADMINISTRATION

1. ORIGIN.

In a memorandum dated December 8, 1934, Mr. Sol A. Rosen-
blatt, Director of Compliance and Enforcement authorized the Chief of the
Compliance Division (Dr. L. J. Martin), in order to increase the effect-
iveness of Compliance Administrationi and Enforcement, to take all steps
necessary to establish and administer a system of Regional Administration
along certain lines, subject to Mr. Rosenblatt's general supervision and
direction. This proved to be necessary as the two Compliance Councils
were unable to handle the large volume of PRA and code cases that had
accumulated.

2. REGIONS

By January 1, 1935 or shortly thereafter, the Chief of
the Compliance Division pursuant to authority vested in him by the Dir-
ector of Compliance and Enforcement, divided the United States into 9
regions as follows, each Region headed by a Regional Director appointed
by Mr.. Rosenblatt, but subject to direct supervision of the Chief of
the Compliance Division.


9819





-69-


Region Regional Director States

7fl Merton L. Emerson UMass., Ne,, I.H., R.I., Vt., Conn.,
Boston, Mass.
,r2 Anna Rosenberg, New York, N.Y. le'."' York and New Jersey

f3 G. R. Parker, Washington, D.C. Del.,.D.C., Md.,, Pa., N.C., Va.

f4 W. L. Mitchell, Atlanta, Ga, Ala., Fla., Ga., Miss., Tenn., La.,
S S. C.
F5 BenedictCrowell, Cleveland, 0. Ky., ,'ich., Ohio., W. Va. *

f6 C. F. Rumely, Chicago, Ill. IiI., Ind., Mo., Wisc.

if7 A.F. CCook, Omaha, Neb. Colo., Ia., Neb., N.D., S.D., Minn.,
: Wyo., Kan.
t8 Ernest L. Tutt', Dallas, Tex. Ark,, N.M.',- Okla., Tex.

I9 Donald Renshaw, San Francisco, Calif., Ariz., Ida., Mont., Nev.,
Calif. Oreg., Wash., Utah.


3. FUNCTIONS AID POWERS OF REGIONAL DIRECTORS
The functions and powers of the Regional Directors were:
(a) To direct the activities of NRA with regard to compliance
administration and to cooperate with the Litigation Division in its
activities.

(b) To direct the activities of the State NRA Compliance
Directors in their Region with authority (in addition to the other powers
herein conferred) to exercise any of the powers that have heretofore been
conferred upon State Directors.

(c) To withdraw and restore the right to display the Blue Eagle,
after consideration of the recommendations of their Regional Compliance
Council.

(d) To refer cases of noncompliance through the member of the
Litigation Division assigned to their office to the proper United States
Attorney, with the request that civil or criminal proceedings, or both,
be instituted pursuant to Section 3(c) and 3(f) of the NIRA. This did
not deprive State Directors of the authority heretofore conferred upon
them in this regard. (Note: This did not arply to the PRA.)

4. REGIONAL COMPLIANCE COUNCILS.

"- '"--enql Comrliance Council was established in each of the
nine regions to hear anadcojb.... "s of alleged violations of approved
codes and the PRA. Regional Councils were Organized along the same line
as the Compliance Council, NRA, each coiincil conslsted of a Ia- represen-
tative, a representative of industry and an impt"Ax, chairman.


9819




-70-


Subsequent to the establishment of Regional Councils, the State Compli-
ance Directors referred all cases alleging violations of the PRA which
they were unable to adjust, to the proper Regional Director and Regional
Council for final disposition.

Although the Regional Director upon recommendation of the Regional
Compliance Council had authority to withdraw and restore the right to
display-the-Blue-Eagle, neither the Regional Director nor the Regional
Compliance Council except Region ?3 were authorized to interpret the
PRA or consider exceptions t-) the Agreement authorized under Paragraph
13. Such matters were referred, for final disposition, to the Compliance
Division, 1RA and the members of the Compliance Council, Rogion t3 in
Washington. This was necessary to maintain uniformity of policy. All
PRA cases which had been previously handled by the Compliance Council,
IfRA in Washington were referred to region f3 Compliance Council; the
successor to the Compliance Counci-, NRA; for final dispositi6n or
restoration of the Blue Eagle in cases where the respondent had been
ordered to surrender the Insignia.


9819





-71-


C tLAPTER V


RESULTS AND ACC:'7.PLISHMEKTS

I. SIGNATORIES TO TH7 PRA

According to the final report (week ending April 28, 1934)
received from NIdA Field Offices 2, 317, 838 Agreements were signed,
affecting 14,762,029 employees. According to General Johnson,
96% of Com-.erce and Industry were brought voluntary under the ITIRA
by the PRA. This does not necessarily mean that 2,317,838 employers
signed the Agreemcnt as in some instances tie PRA was signed by
Branch Managers for their respective branches. From the same
source it was retorted that 2,261,766 Certificates of Comrliance
with the PRA were signed. Subsequent to April 28, 1934, there were
very few if any additional signatories to the PRA.

II. EMPLOtMENT AND PAYROLLS

A census of all employers taken by the Statistics Section of
the Research and Planning Division, NRA, during the latter -Dart of
1933, revealed that employment in the United States had increased
from 10,868,004 in June, 1933, to 12,564,344 in October. 1933, or
15,6%; while weekly payrolls had increased from c238,458,411.00
in June, 1933 to $282,613,470.00 in October, or an increase of
18.5 during the same period the weekly income per worker increased
from $21.94 to t22.49 (*). It will be noted that the data has been
tabulated by States. The Statistics Section,!NRA, is now engaged
in making further checks on the above data and tabulating the data
by industries, and it is planned to incorporate complete data
broken down by States and Industries in the final report.

In. the RA-PRA Census" mentioned above, an attempt was made
to obtain reports from all employers, some 2,500,000 card auestion-
naires were mailed, approximately 900,000 or 364 were returned.

III. COMPLIANCE

The Field Section, FRA, reports that approximately 600 cases
on non-comtliance ritlh the PRA were docketed in NRA. A total of
184 employers operating under the PRA were ordered to surrender
their Blue 'Eazle insignia., Upon application by employers who were
ordered to surrcn-Lr the Blue Eagle and after the complaints of
non-compliance with the PRA had been satisfactorily adjusted,
NRA restored the right to display the insignia to 32 employers.


(*) The results of the above "'TRA-PRA Census" have been incorporated
in "PRA Census-Tabulation by States, t'Emloyment and Parrolls --
June, October, 1933," on -aze 224.


9819









CnAPT,: J VI


P .OZ:L. S

I. POLICIES AiD I1rwTZi.PrTArI:'--S

L. -_L.&'Y II- DEVELOC i:T W l'-- Po::0:.ULT:*C.TIO:
7.LA- I~ -j: rd7T

As ;reviluLsly :ientioaee the Adniinistrrtirni1.as- fbrceC. to do
sc- et ing: iTnrinc iatel-r to avert a ne" collapse in Tr-K6.e'& pai'-in&us-
tr- dL.uring the Surner of 1953. TLe President' eeinloynent Prozra"
.nc the PRA -"ere launched one nonth after? .te a'T)roval o_ the :IPA,
oeflre sn.iple tine h-id been -fi'orCded to. f.etemrine in -eta.il -rooer
,)olicie%. It should. also oe oointe... out in this connection that -5
tC.e Adm.inistration hd,.. no crite-ri:in.to folIo',, the PA "as ncce-sz--
il.: an e:qperi:ient, r-hich resulted. in nan...r conflicts, rovisio-m'. n1.
a-ibiguity in -.)olicie. anC. intero-:eto.tions. It 'aP )hysicall- i.i-
:ocsible for the PPLA Polic- ZoarK as a so '_ to ct on 11 intern-e-
tm-.tions rerui-ied to ;nswver the ;:'iousanJ.s o- que-tions that arose in-
Tmiiatel, a ztar the launching of the canpair;n; therefore, nany -'ere
Mo.de by the Council to the ~-rod:C. nd b'- the CQhie" and. staff of the
Interpretation Section, Dlie Er.cle Division, J"tiA.

"* .. PITA'. THAT IT WAIUS-OSSIBLE TO CO._LY A::D S-7AY PT 'USIiTSS
*" ~ ~ ~ '9 :"*
Even thou.-,h Pc.ragraph #1-., PA provided for relief in case',
o* individun.l great and. :i-.voidable hards'Uip, n-an:' employers at first
heitarteC to- siin the A,-ree'ient, because-of fear th .t they could
not compTrly, or because the-- c.id not understand juct :'hat -,as e:-
.ected of then regarding --ge. ?-ni hiurs. T:.is rroblen 7as solved
thiou.zh educotion.
C. 7ZE TI.-TT TIHE FRESIDiT ;.ICT{T & JiCISZ TlI PO'TE-- DLEGATWI
UD1-DER SECTION 10 (b) :TIA?

Early escortt received by -A iT.icfted thr.t many employers
"were hesitating to si.n the PEA because of fear that, under Section
10 (b), UTI2A, the President might e::ercise hi:, power to cancel or
u:o.if-: any orc.er, approval licensRe, zrle or re.gula.tion issued and
thereby change the terms of the '.tx;reement.

In answer to this proble!.i, 3cneral Jomhnson, on August 5, 1953,
said:

"In the first place I question the validity of this inter-
pretation of the IT. I. Ra A. The ni-jit to cancel or
modify his OTM action doe.- not iLiply any' rant of -o-er
to the President to chr.nge the obligation enteredd into
by a person ,ho has signed an '-igrebnent -ith the Pre-
sident. Certainl- it is unthinka.bl, that the President
-ould as.: employers to sirn r.grcerients retervinr to
h-inself the -o"er to re'-rite the a'-;reerent nid then
hliold. the other party bound by -.n oblir.-tion he never
assumed. Indeed it is surprising to thin]: that anyone


231;




-73.-.


should iTr'ute rn: such intenttion to 1'he President".

D. IAI-U E o0- sUi'sIUTICs T, .- pFA `. ":--. E v .::'0I- P ?*__
S0Y LO' lLS

r cext in a fe'- inst-nces -'.. Substituti:) to the PBA ac,'roveC
for various tr. es nd i'..'ustries ..ailed to l,'fine the nember-i'i
of cr. indutr .-.. to cl'; .if ..u.i rous emplo-yes An ,-.c-Lllent
e::-.ri;:.le of this ipoble> '-ill be found, in th6 ca're of the Tovrea.
Pr.cl- iL -; Com-t:L-, iinvolvi-.; their zl-u-;hter house nec Pnocni-:,
Arizonr. Adjacent to its slau'hter house, the i. icllant maint.U-ined
concentration corrals into whichh cr.ttle for slau);hter -'ere conce-i-
trr.ted cfter they had. '-en fattened. a 6. conditioned.. In a.,iiion
to the concentration. corrals, the cp-ollomant operated feed lots where
cattle arriving fror, ther^.nches ,ere. l-ept flo i three to six months,
ritil the, r ere in proper condition for .lau'-ihterin;. Three of
these fee,. lots "ere locatecd fro: five to 70 niles from the slnit hter
houe, the fourth -as ?'d.j.csnt.

The duties of the feccl,.i,' lot employees consisted solely in
feedai, cnc caring for the cattle, none perfor-e.' d-uties in the
slaexwhterhouse, pe.:l1:i... .lant or in concentration corrals.. The
appellant contended tho.t such employees should be classified. as
cricultural employees, _-ncI -h.refore not subject to the provisions
of the -L.

On Ju.ly 23, 1934, the Complia.nce Council, I A! voted unanimousl-
that enployecs in feed lots adjacent to p,.c:'ing, plants be classified.
as industrial employees, an& that as -such, the P2A wage and ho-ur
pro% isions ouldC apply. Subsequent> the Tovr?_a Packing Comp-yn
ap--ealed to the i7A, Industrial bp:eals 3oarC, the above decision of
the Compliance Council ITRA and its subsequent modification of Feb-
rua i 18, 1935, making it retroactive to July 23, 1934. "n Anril
12, 1935, the 1I3A Industrial Appeals Boa:-rd recomn ended that the
nruln, of the Compliance Council --hich classified the Appellmant s
workers in its concentration .nd fcE ; lots in'Phoeni::, Arizona,
as industrial Trorhers be uoc.ifieoC. ao as to classify the workers in
th.. feedir.-' lot as agricultural emloyoees nd, the:.-fore, relieve
the aellant of the obl-igation to comply ",-ith the provisions of
the PaA in regard to its employees ot this feeding lot. before final
action ras taken on the recor'lendation of the Industrial A- eIs
"o- rd the Suprene Court rendered its decision on iTP7A end no further
action ,as taken on this case.

E. JFLD A(YIT7S

A's previously pointed out, the llecover, Boards (State an(! Dis-
trict) and the Local Co-ryn i.r.ce Doards oper.-.tedC. on a voluntary" bo.is,
generally spec.ain no Federal or locn ... u1.-.r rere maae available for
reimbursing the mer'bers cmnd the per:.onnel o-. their offices. Although
in the main, the Loca.l Yx-,i-i..cs 7?o r:.s dciU a ':,.a:able job, it is
reasonable to suppose th".t otter --eU _'lt. -old-,,. h'.ve been accorn!lished
if provisions had been nmade by the .'n:.mrent to nir-.rge their staJfs
and at least reimburse their emn9loyee-. In sone cases the persoi-niiel
of the Local Corpl-iic-ice 'o.: '_ere not *.roperl-" selected and givenn
9819







rrjr-le training.


2. DIFFICULTY AI:D FAILL-JI O ?ILLD A-TC2:CIES TO -:TA.LIS{ ALL D
VIOLATI01IS

In sone c.ses it '-o -racicall- irroossible to establish al-
le'eC. viol-tions because the ;.o'.lain uits refauej to permit the use
of their nrmeF thrmch-'.,' f--r oi ].os-in-" th.ir jobs. .-:ecutive Or('er
-" I' 15, 1 L-, ... .Lvorizin the rtnlic.tion 0f "ines and/or
ir:.-risoiunent ;r'ecri*ec. i:n Secti-n 10 () "1im, to er.ployers sub-
ject to a coc-e -ho c isilize .'. o- ce'.E:cotec- an7." em-)loree for mal.in- a
co,--l-laint or -:iving evidC.nco 'ith res.-ect to -n- -llege. violation
cic. not a.x:li to ei.ilo"cefl olne-.tin.-. ,.r'uiner the P by the National
Co.,-,liajce Board rin it fuc': es-ors and the-- require'a that an:-
er-)loy&e .iXis--e" or ceiot:. for re-)ort-n; ?.liey.ccd violations must
be r in-.t.ted.before oany; cc.sc oulC. : consider-d a.dju.sted.

,.:ny cases ere reforrea- to "To'shinr.jtcn. for action which h h'.d
not beE;n properly consid-re' b-:- the Local. *3on.lia:ice -Joards as re-
,.uired in V'RA Balletin 45, :'.nd in numerous instances the alleged
violations -iexe not established,

-. CZI-T-LIZATIOiT VS DEC-L.:TALIZATIOi: OF ENFORCIr=TT

Until the est..blih-.ient of Regional AdLinistration in January
1955, -.ll 1"2ij Field Acenci2s, -.s fa.r as the PR;,. .?as concerned o-)-
er-itel". in .an advisory canacit-r cnly. Therefore, all cases of a.llee(C
PJ. cares r-erLe required to Je forwarded to the Compliance Division,
I R,, -,r sntiington, for final action -.nd removal of the insignia --hen-
ever &arranteLd. This policy created considerable delay, actin, on
the cases and owdoubtedl- had considerable bearing on non-compliance.,

H. PUrLIC OPIUIOiT SOLT' BASIS 0: :1F0IC_ :L72

Ucn7- people feel thc t Public opinion V.as not sufficient to en-
fQrce the .PR.IL. The n.riter is of the o-iniorn that "Public Oninion"
is sufficient -rovir'ed the ;Jr.o;ron is not burd.ened "-ith complicated,
rnbiguous,. multitudinous and conflicting ; rulings and interi-retations,,
mn. provided adequate n.chi-ery, is set un to educa.te, administer cand
coct promptly on allege( violations.
















S 81S