History of general exemptions

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Material Information

Title:
History of general exemptions
Series Title:
Work materials ;
Physical Description:
vi, 53, vi leaves : ; 27 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Lamar, Lucius Q. C
Publisher:
Office of National Recovery Administration, Division of Review, Code Histories Unit
Place of Publication:
Washington, D.C.
Publication Date:

Subjects

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

Notes

Bibliography:
Includes bibliographical references.
Statement of Responsibility:
by Lucius Q.C. Lamar.
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 - 020509953
oclc - 57291281
System ID:
AA00018849:00001

Full Text





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OFFICE OP NATIONAL RECOVERY ADMINISTRATION


DIVISION OF REVIEW












HISTORY OF GENERAL EXEMPTIONS

By

Lucius Q. C. Lamar


WORK MATERIALS NO. 75


















CODE HISTORIES UNIT
MARCH, 1936




























**' r1 o .










OFFICE OF NATIO1:AL RECOVERY ADMINISTRATION:


DIVISION OF REVIEW













HISTORY OF GENERAL EXEMlPTIONS

By

Lucius Q. C. Lamar


CODE HISTORIES UNIT
MARCH, 1936


9845






9AG7 '3GUND
By W. P. A.

34







FOREWORD


This history of General Exemptions was prepared by Mr.

Lucius Q, C. Lamar, Exemption Group Supervisor of the Code

Histories Unit, Mr. Robert C. Ayers in charge.

The history, the operation, and the effects of the Executive

and Administrative Orders which created general Pxemo ions have

been treated in this work. The ter- 'uener'i Exemptions" as

here used means thoso emotionsns which wr' no limited in their

application to a uartica.lur zod-&. Work Mat'-rials No. 74 on

"Administrativ- and Legal Aspects of Stays, Exemptions and

Exceptioas, Code Amendments, Conditional Orders of Approval'9

contains allied material.

The exhibits referred to in the text are not here reproduced.

They may be found in the NRA files under the title NRA Studies

Special Exhibits, Work Materials No. 75.

At the back of this report will be found a brief statement

of the studies undertaken by the Division of Review.





L. C. Marshall,
Director, Division of Review





March 25, 1936


9845


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TABLE CF CCNTEI-TS


Page

Sumima ry 1

General Exemptions:

A. Exemption to members not participating in
establishing code.
Executive Order cf July 15, 1933, No. 6205-B 3

B. Co-overatives.
Executive Order of October 23, 1933, No. 6355 9

C. Towns under 2500 oonulation.
Executive Order of October 23, 1933, iTh. 6354 13

D. Service Trades.
Executive Order of ":a'r 27, 1934, 'o. 6723 16

E. Exemptions as to Sales to Hosjitals.
Administrative Order of Januarv 23, 1934,
Order 1So. X-4 and others 20

F. Handicanued Workers.
Executive Order of ?ebruary 17, 1934,
No. 6606-F 25

G. Homewer'7ers.
Executive Order of Jay 15, 1934, 'o. 6711-A 29

H. Apprentices.
Executive Order of June 27, 1954, ITo. 6750-C 33

I. Sheltered *Torkshons.
Administrative Order of Mlarch 3, 193',
Order No. X-9 and others 42

J. Government Contracts
Executive Order of 1'Larch 14, 1934, No. 6646 44


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Page


K. Exemption from Assessnents.
Administrative Order of ADril 14, 1934,
No. X-20 and others 47

L. Territorial Possessions.
Administrative Order cf July 2, 1934, No. X-60
and others 52

EXHIBITS

(These exhibits are not reproduced in mimeooranhed form. Thoy
are on file in bound form in NRA Studies Special 7xhi.bJts,
Work materials 'NTo. 75)

1-A Memo from Malcolm Sharp re origin of Executive
Order 6215-B
1-B Liemo front B. Lotwvin re origin of Zxecutive
Order 6205-B
2 Executive Order 6205-B Granting exemptions
to non-psrticipating members
3 Memo from L. J. 3ornard re Interpretation of
Executive Order 6205-B
4 IMemo from L. J. Bernard re Inter-retation of
Executive Order 6205-B
4-A Rerorts of Exemptions under Executive Order
6205-B from Construction Unit, Industry
Section No. I
4-B Reports cf Exemptions under Executive Order
6205-B in industries other than Construction
Unit from Industrv Section I
4-C Reports of Exemntions under Executive Order
6205-B from Industry Section II
4-D Retort of E:*;emctions under 7x::xcutive Order
6205-B from Industr,- Section IV
4-E Reports of Exemptions under Executive Order
6205-B from Industry Section V
5 Executive Order 6355 Exemptions to Cooperative
Organizations
6 Executive Order 6GC'6-A Suunlement to and
Amplification of Executire Order 6355
7 Administrative Order X-35 Definition of
Farmers' and Consumers' Cooperatives
8 Administrative Order 182-11 and 106-11 -
Interrretption of administrative Order X-35


-iii-


9845







Exhibits (Continued)


9 Administrative Order X-98 Internreting Executive
Order 6'06-A Insofar qs it wn-rlies to allorwance
of bro!.erage ccmmissions to corn'r-tives
10 Bulletin 3o. 3 The President's ?.eemolomynent
Program
11 Executive Order 6354 Exenr)tin,? towns of less than
2300 nonulation
12 Executive Order 6710 Amendment of Executive Order
6754
13 Administrative Order X-72 Sur nolementing Executive
Order 6710 and designating trades and industries
subject to exemptions
14 Executive Order 6723 Exemutions to Service
Trades
15 Executive Order 6756-A Authorizing local codes
from unqualified service trades
16 Administrative Order X-53 Relating to service
trades, the subject of Executive Order 6723
17 Letter from Executive Committee of Cleaning and
Dyeing Trade to the President attempting" to
withdra-" assent tc code
18 Reply of Hugh S. Johnson, Administrntor, to letter
from Executive Committee (Zxhibit 17)
19 Administrative Order X-4 Granting exem-otions to
Hospitals
20 Administrative Order X-5 Extending effective
date of Administrative Order X-4
21 Administrative Or.er X-8 Qrantin- permanent stay
of Administrative Order X-4 in connection with
certain industries
22 Executive Order X-24 Stayin -orovisions of Admin-
istrative Order X-4 '7ith respect to the
Signalling Apnrijratus Subdivision of the Electrical
Manufacturing Industry
23 Administrative Order X-39 I;odifving the Adminis-
trative Order X-4 and e-:centing therefrom certain
industries
24 Executive Or'der 66C06-F Granting exemptions to
Handicaoped ,or'.-ers
25 Instructions from U. S. Labcr Deoartment dated
November 8, 1934, relative to Fjndicapped
workers
26 Report from U. S. Labor Department dated December
9, 1935, covering Handicapped workers











9845 -iv-







Exhibits (Continued)


27 Post Code anlyrsis, S'rial 7'n. 78, by lesenrch
and Plannin, Division, of Code Provisions re-
gardin.T Kandicnoped hmi)lcy;ees
28 Executive Order 6711-A .xernuition to Home-
'.-orkers
29 Report from U. S. en-oartment of Labor dented
June 1, 1934, regarding Kome Jcrk
30 Report from U. S. Eenr;rtment of Labor dated
December 9, 1935, upon exemption to Home
workersr s
31 Form of Apnrentice Contract prepared by the Federal
Committee on Apprentice Training
32 Bulletin iTo. 1 of Federal Committee cn Aporentice
Training
33 Excerpt from Report of July 25, 1935 of the Federal
Committee on Apprentice Training
33-A Report Bntitled tne Aporentice Training Program
Under the N.R.a. by the Federal Committee on
Apprentice Training
33-B Post Code Anal'sis, Serial Fo. 74, of Provisions
regarding, Learners and Apprentices
33-C Post Code Analysis, Serial No. 74-A, SuTplementing
Analysis of Provisions regarding Learners
and Apprentices
33-D Executive Order 'o. 6730-C Txenption to
Anprent ices
33-E General regulationon No. 1 re Anprentice Training
by Secretary of Labor
33-F Bulletin No. 2 of the Federal Committee cn
Apprentice Training
34 Administrative Order X-9 Exemption to Sheltered
;Workshons
35 Administrative Or.ier X-28 Aprointing national l
Sheltered SWorksho-os Committee, etc.
36 Administrative Order X-) Authorizing the
National Sheltered Wjorkshon Cornittee to
Issue tne N.R.A. Insignia
37 Administrative Order X-Rl wnendin- and Supple-
menting Administrative Order :Z-59
38 Executive Order 6646 Requiring Certificate of
Compliance on Government Centr&ects
39 Administrative Order X-48 Exemption in con-
nection with quotations made to Governmental
agencies
40 Executive Order No. 6767 modification of
Executive Order 6646









9845






Exhibits (Continued)


41 memorandum from Laurence A. "Knap-, dnted June 6,
1934, re.:arding, assessinenrts
42 Execuative Order 6678 e1,rting to Collection of
Expenses of Cod.e Administration
43 Administrative Order X-30 xerl~tions Governing
Collection of Exroenses of Code administration
44 Administrative Order X-36 Reoalatiens Governing
Collection of Exp-enses of Code Administration
Administrative Order X.-36-1 Interpretation of
Paragraph III of Administrqtive Order
X-36
Administrative Order X-36-2 Internretation
of Exem-rtion in PRragranh III, of Adminis-
trative Order X-36
45 Administrative Order X-60 Exemptions of Trades
and Industries in Hawvaii and Puerto Rico,
etc.
46 Administrative Order X-80 Appnroving Form of
Administrator's Trrritori,?!l Cooperation
Agreement
47 Office Memorandum Wo. 3.6 Authorizing the
Deputy Administrator for Alassha tc decide
Applic-tions for Exerntions
48 Office Iiemornndum- :,'o. 357 Prescribing Pro-
cedure for Deuuty Administratrr in the Exercise
of the Authority riven under 0. I'. ITo. 356,


-vi-








- 1 -


This is *x brief histu.r of a r'l :xc;i-.)ti ns from cndo
-' rOV iurSs. '.;h tcOi. ". C. er .:. ..i ti a" r. ..r, used means
those excm tions not lii.it:., i.- t,i .\- .'-.icrtio-: tc --).rticu-
lp.r code "out extend either to D11 c'.ifie'. in,..ustrios or a group
or class of i-..L.trius. Tr ,y,.rlc, lxecutivo Or;:"er 6205-D,
9.-filies to any and 2ll co 'us thnerca-tor .,nrovoc. ]:2cutive Or-
der 6711-A, ':Lich -r.nts a.n o;a:rti.-m tc )ermit home wvork, ?--plies
only tb those co.'.es '-hie.. -.'r:hibit home wo.':.

Plainly, t".: a urosc; o- t'ils 1wo0: haI.s boon to nlaco in a
sin;lo vol-tuno the ossentinl foeaturos of" ?-1l the generall oxcn-)tions
tc s.,rvo as ;. ILindboolz: or start i. C)oi-t fcr e zaore com orehensive
stu.i'; i OL x n; th;: tc ....rtic i xe r-,-,tions. -T.erefore, an en'eavor
has bc-a ;*.-' o to (.evelo'n a-rijfl-- a cl!or iCac. of cac.. cf the gener-
.1 exc-nMti.-)ns. "2is involved, first t.u 'jac'.zrovu''. or coni('itions
whic: m-. .J nocxssr."i- tn.:. isGr cc oe t.c particular order; secon,
a sumnma_-, n- thi- c-.rtur itself; rvuiC third( Lonceal treatment of the
o or- ti:.?;s- n 1. ..i' :ct of tbD orc cr.

Thu sor.rccs cf ir'S rtli:. *r. obtai-.:: :. )rim.arily frorm the
)ri-in?.i T-:ccvutivc .d Ac...tnist_'..ti- e Orc.rs an'.d,' the supporting docu-
iArntF )eriaini,. th:retc. Er cv.'2, iLi r.:- c-esOs there vwis no su.e)orting
docwu.entc, or y 1-. ocuxnent n o file sn.in.. the c..rcumstancos surround-
inu the isc.uanco of th:- *3.rticul-.r order. In such cases wherever
-)ossible tL. vritcrs o" tiis histo-' conferrc.d vith the 1MiA offi-
cials '-,:hC iv... tcrsonrlly ihkndlcd t.L particular order or had some
)crsonai ex-rari-ncc rolkti2g to it r.ra, obtai--ii\] verbally such in-
fo rmati.n as the official h.a. or obtained loc.ds to other documentary
evidence.

In the s .nce rmainer considerable mrm.trial was obtained in devel-
o-ting the various sub-to'oics, such r'.s "Operetion and Effoct" and
'1Adainistr-tio..n of Ord.ur", t.isJ sfc--t..ics boi:-v comreion'jo many of
the main topics.

Specific instances of i:if. rr.nati'-:,- acquired froe sources other
than the official records arc t.'? f,: lloi:g:

Executive Order 6205-2:- T.,e background of this Order f om
valccJ.in Shrrp (See *dhibit ITo. IA) .13. 3. Lotrin (see exhibit ITo.
13). .eo-ort including, the number n'- 3n ispositicn of exemptions
were o-erativ'j under ;xecutive Order from Robert II. Campbell,
Deputy Director, Section I of tie Division of B3isiness Cooperation
covering codes in toic Construction Industries exhibitss :o. 4-A).

Lilke report fro;:i "7. P. 2ilis, Director, Section I, of exemp-
tions uri.er the Ordj3r in co. -s constituting; the Basic i.aterials and
Forest Products Inrustries. (hEcxaibit 4-U.)

Like re):,rt of such exem--tions from Industry, Section II, from


D845





K,2


c. cc cl'scifr:.i e .1. ".,; numi ct'" ," In "L t i.j... (T:-tiijit.s 4-C).

Li'. rc r't fr 1. Ir'.u .t.., ,.cti ), IV, fuj,.i co 'cs ui .er the
c .1c: .'ic-t.ti 'n. o ..`_ .- ,s n In...ustrics. (T --iuit 4-J).

Si::-l.lr re )'rt fi;- r n,.str. .)Cc'Iio0 V, cf uucnI axenT-tions
c'.*. "c..s i. rr-Lic n.rts I,-,lLtriLs, Inl.rn. "tjr 2"rrier TrR.Ce,
.... t.l n: t -..c Sawvicm -':".'..Gs .,_,cc :.-.i, :-'r.c-to Y icLa and :-.'e-aiian
"5 _.Cs, i..nc u ,-s, r'Llic i'.s, tion, n u'..'jru-rOt 1In,,strios.

T..r ; .. -1. cr o-ts fr-.. I .-. t/; 3...ctic L1 aiich incluC'.es
" :K il-c 2.... hch.oic.. is.

3o-j.3l.'.t ivL.s: 'jrv,.i: l ". -.ct 'ith 'enim -'.on J. C1.--.:Q, formcr-
i- -.' .ic nrF-l.tst: nt 0 v..'G;, jU. Gc ,.. '..'.j _. -s .iv 5i .i -nfL ;.li ,o r
tcn..tiv- hist 4.', c0 i''.-v b :. )IV.' .a

L; L 6 Vk2C -' -0
?. '.-ZIL "mUi.' 3. .0 ,O rv.l. t i /.:-- 1OU .I c?:-t tact 'ith Al..ison
J-.-.-z I'.. 21l :::cv.ti-o .ssL stsSt- t of l-i. -'iM.tr'ib-ative 2rades Divi-
si :.'!

S rvice T'i'n-.cs:- Przinl1 contact iti 1 r..(2. Col o.n, Actinj
pssst-..:.t _, .utj' I..-- th-. Iistri'u ti .. 'j.r. C.es 2ivisi.:n.

&,l0s to :o&.'it?.3lS at.. c.fls, -X r-ti.ns to S to lttred .Jorkzsho)s:-
Lffic L.: J.ooiC, f :c7-irl:' '.-c'_,ivo .'ssista.it of tJOhe Tublic At,0oncies
ivisi.. n, .. a::ocutive Sc-'ota. of thGe '-tio-1..-i S.eltered VWorl:siior
"o.a'ittca.

: i.."icn.yloL r.olz:c s an,'. :.L;I..... . ...rs:: :- is. Clara :i. years ,
assistant Dircctcr, Divisi:: n of Lauor Sio.ndard.s, United States Dopart-
,.:.cnt of LZ-bn:r aLi Ck irm'rn of 0' *,;ol C .i:.-ittoc oln JA-prentice Train-
i .r; (So.. also i'c ..-rt of lab :. j-'a tmont on t.".i'c-.pped '.or'-ors,
xAlibit : a. :6 *-. rcor.t on .no'.:or-:ors, ,rhiydbit L;o. 30).

A.-"rcotic Trra'in;:- H. 3. t"ducrsen, T-c.,iical Sccrotar,' of
Sc-ora.l Z;.'..nttee on A-r.ontice Trai-n.i:l,, -nc1 u:.-nlcycos of the com-
.i 'ttcc.

-.var.ient Contracts:- Tench T. l:aryo, 0o--mer Unit Chief, Inter-
t- ti Unit, o.Rvi.,; Divisi &n, ,.": forn.erly hindleO. the review of
c:-cc)ti):is fro..: :-ecutive OrC.cr 36746.

?'--r-c '.crc rt..' exe ticn.! tiat clo n: t come within the scone of
t.ir ."'c rU. "n'. f-r usefl.1 i:U'onLiation rejx.rLiir cxxc.)tins in general
..- roedcr ic iL:vit:'d to "An.iiniistrativi n:(r Lcgal Aspects of Stays,
-':.)tiO '. ;xGptis, Co .,-,:o.,ants, Con)'itional O0--Cors of
.Mir v?.l, 1 .: r-- trials 74.


845




- ILj -


A. x2":.':rS 20 ,...'_. 0? '?Lj2IC'.:^_1' J STA3LISFI'G
COD'",

I. O'i.-_in o Orf .r
II. Thei Ordoer
III. Cn-struction oT '.e O 7,r
(1) Arm..i..OLts tc c.0.cs ia- be r tayer.. under
the T:ccutiv Cr.'.er
(2) P-.rtici-ation
(C) Representation
(4) VJhother action is tni. t of an cxemonrtion
or str.y
IV. Oration and effectt
V. .ncndusion.


I. Ori,in of Or,.'er

The Daticnal Industril Locov-. r Act wr-s cy-rcved Jun- 113, 1033.
The first co'c, .th't t if Cotto-n 2til lu'Stry, was a-- .rovod
by the Prcsi..'cnt onu Jl' ., r ... () T-'ic Or-l,'-r of Approval ccntein-
ed the conditi-ns -h..t ac:r!i"-istrativc c-jnisicration should be 6ivon
the a--:,licatio-n cf e-ny -erson directly affected by the code who had
not in .-.rson or by i-cpr,-sentativO cj:'sntetC. thereto an.. that any
such ierso-i should. b-, Jivcn c.:i oo tcrt-unity for a hearing before
the A.ji.inistratcr ox his re-roscntative, prior to incurring any
liability under the c.CLo by en' of t-.,- moans providedd in the Nation-
al IndustriaJ. Recovery Act (See condition (ii) of the Or6er of
Approval).
T. .e~lit idsiblt on-i''
T.c ossijility of li -ti:, involving tLhe legality and con-
stitutionrlit: *1 t-lw co.'.c v'ith r:s)cct to enforcement of its pro-
visions u-ion non-asson-iti.-, ..iemnbers wv-.s c.isic.ud by the legal staff
and tht nuesti.:-c 'as raised vhet-::- such non-assoentin members had
been given duo notice an.i op-ort.lit.,- for rrm.L::!i objections to the
proposed co.:'.e, csccilly as t_'. n.lt," provisions of the fTational
Indu.strial coverr' Act vrore c-.isiL.Jrc. to h-ave been severe. This
conCition o0 t Order *rovi.'. f" r tn.v o-rbortunit:r for hearing
va?.s accordingly i'nsertcr! t-) met such njssiole objections. There
vas hovwevcr criticism fro:': s .-*:.. v ot t-e mcabers of .this inLdustry
urni th.e round thiat t1is c,.-,sitlo; "'es tc: broad as a.llovin, more
imA.,unity from liability t: non-asse:tin: mer.be's than was .icceass-
an'.

After the provwl cf this c.:.e3 it v.was .deemed necssar: to have
a general order "rovini, for notice anJ oo)-ro'tiuiity for hearing,
applicable to P11 cc'.cs. An order was e.ccrdci-jy C.rafted by the legal



(1) Printed Coc'. Volui I, 1po 1.


9845




-4-


-t "' :' -A "it.A t'. i,,' : -' :bviatin t..,' .rincic-'l cbjucticn
tot c : iti .. tc. 1." L vi;r t C- tc t. : 2',xtile Co'e. ( )
*:n 'i." J l I.., i-.7,:-'_, t .. ?-" .i .-t ', ',:. t,^ or '.-, 71,hich w.s desig-
nate). as Za'cutiv Cr-,r <'-2.

II. :.. Cr.cr

hi[, z;-c-,;:iv- C'rx viedcd f.r h-rri.,s aftor tne anproval
0" a c t- ).rs.'. *',:,- n ,t cit...' i:h e- rs.- or b-- rdfpr.sontative
,;:tici At.J( ii cstablishin -.r h.', not c--isente. tc. such coOde, who
clri,:d that in )'rticular ii-,ta-ices tIL; c'.e V ?s unajust tc them and
a,1liCL' f.r I ex1m)ti -. t,.r fr:m. P*.rs ns s. Ei))lying within ten
days aft.r tl.- ef.'.'ctiv.2 dnt. :f thz co'. v'.re Livjn an opportunity
far a hari.a ?n'' deterr.,inti r. .-f thu issued. raised -rior to incur-
rin,a any liability unJer ti-.- c:.IL. ThM -.-'ni:.iist-rator Might also,
if justice required., st-y thi -) ,lic-.tin -f th- c-- e to all si.iilar-
ly !ffeCtcd ,c)ndin,. th dct Jiii".ti- :-.f the issues raised.

The Orde.r '-ith f-'.rl Mts 3cittf'. is 9s follows:

"Any cc.Le -f fair c nctiti n ? 'rcved by me
sh-ll be doomed( in full force an, ef.'ect :;i the
effective dr-te as stated in the c:dae; but after the
a-n'roval of a cedo an_' -.?s an incident t- tl. immediate
en':rcemrant thcr.of, he--riils may be Jiven uy the
At.inistrator or his dcsignated ra.-)rsentativ t.' ner-
sons (h.-rcby Olefined t: inclu'. n--atur?.l ersjons, .artn-r-
shis, assiciatimns r c:rn-cra.ti .-zs) vl'ho ieha.v- nt in -ner-
s n- j" o; rs r-rntativ. ~)arti-.i-itc'1. in establishing.
or c"-Is.ntiw to a c-'de, but h- ri- ciroctly affected
th.rc.y, ?nt *"o cl..biis tht alic--t_ ns :f the code
in :-)2rticulpr instances ar. u'ijust t: then ,: ,-ho
91:ly fLr 'n :xccnti:n to', :r xeiJuti-n f;ri:., or modifi-
cati.n f the code. Such -ers.:ns s: *: lyi.i,, ',ithin ten
.ys aft-r thu cffectiv. (C.tc cf tJ c-''c, shall be ,iven
an -3) r'tunit, fcr a h^arin;; anC. d-t-nninati-n of the
issues raised --)rior t incurri;- r-ny liabiliLy tc en-
f-rcrment ,f the co-:, :,. thu AJlUinistretcr rhP.ll, if
justice requires, stay the Y.)lication f the-3 code to
-.11 simil-rly affected nunr.in a dterninnti-n by me
DI tilu issues .aised."(3)

A-s '.ill be observed fr.m:, the executivee Or,'.r, tic more filing
cf the a):licati:n withini n tie tJn day perioDr'. A-" the effect cf re-
li-vi', t'._ ;licant fr-; t-he .-peration of tnu code until an
-)D)jrtunity hab. bedn bivcf fir a hoarin, II- -r-li6ainiry shovrin



( ) Se ....2:orn.icmz f'-rr, .aIc:li Sha:", :.krly of-the Legal Livisicn
.n,' .r-nicu Lnt'-in if ti, Lc7.l! Divisi-,n, x.Thibits 1-a and 1-B
ris -ctively.

(3) Cc-y -f Zxocutive Opder 6?063-_ "xhioit 2.


2845




c


upon the merits was require. This relief w.s limited, however,
only toc th,:se ,.. did it -r..*-tic-ilte in establishing the code
or hadL net c-,nsentdlJ thereto.

III. Coontruvcti .n ,f tri 0O s-.r

(1) Amendments to codes could, be stayed
under the Executive OrdJr

It was held tiht since, an amended code became pro tanto a new
code that the Executive Order w.-s applicable to amencdments;(4)
hence members of the --articular industry who had n.t consented to
such amendment or participated in its adoption could file their
objocticns within the ten day -perioc, in v-hich event a stay of
the amendment became operative as to them.

Uho were the .-ersc.ns "wjho lravo nt in --erson or by
raprosontative *iartici-ated in establishiing
or consenting to a codee"

(2) ?a?.rticinatin

Under this Order. a nurson '.h merely apnneared at the public
hearing on the cede "but objectedC. to- th.e code cculV'. net be said t-,
have "participated in the ostablis.hin- -, or consenting to a code",
unless his Tbjecti-n v.as sustained.', a-id the code amended accordling-
ly; (5) hence personss so. apCcarinj anc. objectin-, to a code were
eligible to file m...-nlication 1Aithin the ten d.&,' period.

(3) Re ,resentati'-n

In order to nave been eli-ible as a nonparticipant the appli-
cant must nc.t have narticii-ated eith..r in -ersocn or by a representa-
tive at the hcarinL. .hetneAr or :-"t ?. :ers:.n was represented at
the hearing w-.s ordinarily qu sti.a 1 CK-ress authorization.
However, questions dic. arise as to whether such representation ex-
isted even though no express wutitrit:.' was conferred; for example,
whether the persons apaa.rin. C-.I behalf of the trade asscciati:-.n :r
other sponsorintg, organization re)rdsented thuj individual members of
such organization to the extent tih.t a. member vould be deemed to
have participated in the establishment of the code. The Retail Jewel-
ry Cod.e provided that the Code Authority might mal-_e recommendations



(4) ,ieiaorandurn from L. J. %ernard, Legal Council for the Review
Division, to 3. L.i. Jeffrey, dated. Septeardbc 27, 1934, in re
application fDr exennti;n of Click '..a.tci Company, Retail
Jewelry Trar.e (Ore-.-r flo. 142-24), irarl:ed Exhibit ITo. 3.

(5) See memorandum from L. J. 3Bernard t:,' 3. ;.. Jeffrey, Review
Division, dattd. July 27, 1934-1, Exhibit 4.


9845




-0-


brs.-d :!n c&.u.iti ..s in tii.t tracj, 1.,ifch "cn anrjval of the Admin-
istrat-: hall b..c.;.u : rativu r.E. a part cf tliat CLde. 'JiLre the
C. u AUt.. 'it; h-1d 0.c.. its mc .r.unc'.aticns )1ursuant t:' such pro-
visi S.-.iic.A i b .-n a r--vedj -in,. thorf .-'e become a part of the
c-.cd, it '.- h'old ti-Lt tlhe C:c._ Auth,.rit. "-s t:. such actik.n renresent-
.-d t. ..itit. in..'ustr:,' anl all 'rsb~rs tz.reA' had therefore partici-
o!\t2. bV r. irwsentati'n in th.; ustablisinm.-nt c'- sucnh amendment, h.nca
th. sta.y -:as inz,-'rative as t-. a mn. ,b~r -vcn thmu,.h h: files his
-.bj zcti. ;s within n thj 10 da:- )..ricd.(G)

(4) 7h.cther icti n is that 0o: -An excnr,)ti:.n or stay-

It will be n: ted tiat the Or&'d. &rants relief to persons "who
9?-lI f ?.; uxca"-ti.t to, c.r c.xcnTroti fr':r, or a modification of
t-. c.&t.U Theru s.j:ns n.i: doubt ti.t tL relief -"undin. such
nj?.rin vws th-t o-' n ex-ri ti:.n cs C.istinguished from a stay nDt
.nl;. fru te ,;x);rcss linc-a a f te Cr'.er but fr'.a the express
d. i i-ti fi th. t>f "ex.nti a" .nica e.i.;lis t-. :alinfs which
reloas- an in~ivix..cl, ,rou-, or class '.,ithin *:'n industry fr:.m the
full om..ati:n of a code "r-vision as disting-uished fr-m tliA.t of the
tjnrn: f"st-.:y' -hich e.m)li.s t- n t !-_sn than an entire i:ilC.ustry.(6A)
- vcrt.lkss the rclif provided by tho Crder was almost univor-
sally r-f-rrod to as a "stay unCder Executive Ord'r 6"'03-Z", The
term "sty" nc C'.o'abt was adopted because of th. --'hraseolc.y :f the
last stntcncc _f the Order, i.e. "and the A.'.ni-istrator shall if
justice requires, sta thL -.pplicati.,n :" thi c-..e tc a.ll similarly
affoct;.11. ..Zaile generally a:avym as a "stay" th1 relief was hcwmver
hanciljd as an axenm'ti.n P.nd orders tcrminatinj the "stay" were signed
by thj Divisi-n AK"r.inistratcrs.

IV. oe:ati.n and Effect

The relief provided by the Order v'.s availed cOf quite -enerally
by non-ao.sseiti.j, ma.-Qb'rs of th- industry. Hearings in many c-.ses
v:re delayed with th-; result tirh.t man.y mcmbors of industry enjoyed
-x rotijns for cc:-sid.rrablo noriods of time anc' in ra.ny instances
du rini n t.c ntir-. life of the codc. Unc.r the OrCer the exeazotio-ns
became onurative uxjn the mere filing, of th-e a-1lica-ti..i -ithout
t',- njc.ssit- of sh-ing.
mrkirc~ a sh:"'ing.

'.il> ru.)rts fr..lm a.l in ust:ris airve n:t been received, reports
have bu.n receiveJ. fr:.m 410 inC.ustriks. Th.,- co;,nrise Txhibits 4 A,



(G) ..jor[ n. uE:l.11! fr ;. L. J. -3,r-n..rd, 7' .liuit -'IT-. 5

(6A) Definitio-1 of "'xerqtin" Office i..nu1l'III, Sec. 3210-flr-i "Stay"
S-cti.n 3211 S.: clso R-view Divisi:n PricuCernt ITc. 87, Office
.--U I -III S.cti_. 7200.

*- J "'. ' -'


98.1-5





rp


4 B, 4 0, 4 D, rnd 4 1. Un .:cJc1.ivC Ordrir, 317 .%plic.tions
w r^ 'A mz&-. i 2i;,.:- it :.. .Y. csas. In 287 cases
no final acti;. "r..C V._.: t1 .-:,' aT,. .tt' .'i'- :in .- in .-I tfect
during thc *if f t.-, cS..:.(?)

-hi ro")ort 'r.'m, TLn U 'i 1 i S nt. LtE comfll)lutC !nd is
therofc.ru susc^..tibl. :,f fart., r n'- lysiss. It includes th., basic
Construction C:c. rni 23 su-'rlcr.r.Lt'i ccdAs of t'he Construction
Industry. Tho r&'.rt als.e 1: clu'.ei, ) othr inr'ustrias in tiat Sec-
tio;n. An -.nv.lysis if tlis r.--sort sh.-ws the fll,:-1'ving:

z.-. z- c- c .cs involved 33

a'o. of iv) !ic!?ti-is 435

.I:,. of casus in vhich fiin.l
'.is-oositioi has been !.u-J 135

,,c. of cE.scs i-,- V.ic n: ..is-
)ociti: r ins been ,.:'e 270

Priods -' st:;/s it 139 ca.sJs:

"Lesc tn;-n one rnt.. fr.i the cffectivo deatc. ,f cede 2

?r -.m 1 tc ,.f ni:-iuIs 0

ir'om 7 0C 3. n.tis 26

Froa S to 9 il-ntltS 3

?rom 9 tc 10 "i:nths 86

From 10 t- Ii. 11 moit-,s 64

From 11 t-, I ,.on....tlhs 1


V. C-n.iclusi-n

rim tlhe -.bovc it ill b- n *t ". th't large number of concerns
obtained coi-lte irmit r.... libil.i- ;; uder ccC'..-s bby the mere
filing of an licatin ithut ti.; ncssity of rrA-a.in oven a prima.
face shot .in, .;.ny f r i, ln. .I-ic'. of timid: and in th mn.jority
of caszs during; thu cnti:'e lif. cf tc.e code. here hearings wver held
th stays ; in .-ost instances t -r.-iin.ted, indicating that mcst of
such a-r)lica.nts v;3r, not entitled' t:., relief. It vculd tharefcrc
a t'?r tnPt s 11 n-:vision shuuld h,-ave be:- ma.ce. f-r a prc-upt deter-
mincatin of such ?.-)plicaticns. Possibly a general crder requiring
suppeplefimtaro-- o" ,)ost-co.-' he!.rin s uop,-i such ?.p"licaticns within a


9845


(7) The dCis-)ositimn of 1C0 -;y)licatiCns n:t sh-n'n







st-tud o-ridC fr;-m th,.v .ffectiv. dn.tes -I c "es wril- have met
t h. l C-l Ind .c.- is t i tIti t :11n- 1 r-2nui r mcnnts and at tn.- samae time
ins'ur,. n.l-:,'t is-'sisti n. A sin.;..- I.arinL- might I.ve been
.llov.w r "ii mr.':,b -.s 'bj-jctin, t: a cods. F:r members who
cul.' :i t attAd sucn .rin,';, ,rv.visi.n coul-" 1aiv; been made
:':r sj.-.issi .. .f f.cctual data ?.:n. briefs t' ':A -a or before the
date S. uch ihealrint -,"r within suc'. -rrscribod 'eri-.d.


9845




- 9 -


B. EJM.TIOCNS TO COOPERATIVES

I. Origin of Order
II. Executive and Acministrntive Orders
III. Administration
IV. Operation and Effect
V. Conclusion

I. Origin of Order

There has been in existence for a number of years cooperative or-
ganizations. The genuine cooperative is ordinarily the Farmer's Coopera-
tive or the Consumers' Cooperative. They are usually incorporated. The
Farmers Cooperative performs the function of a marketing agency for the
farm products of its members and in many cases also acts as a purchasing
agency, usually for supplies used in the production of the products
marketed by the organization.

As a purchasing agency the organizations secure the quantity dis-
count which is passed on to the members, usually in the form of patron-
age dividends. These dividends are paid at fixed periods and represent
the net income after the deduction of administrative and fixed expenses
and are payable to the member in amounts proportionate to their resp-ec-
tive purchases. Consumers cooperatives operate on the same- principle
except that it acts merely as a purchasing agency and does not include
the marketing feature. There are other so-called cooperatives which
contain some but not all of the features of the above described organiza-
tions, as, for example, establishments which allow discounts to pur-
chasers but which do not act solely as agents of the members.

A number of codes contain provisions designed to limit the payment
of rebates, refunds and unearned discounts to purchasers. It can, there-
fore, be readily seen that such provisions prohibit or might be construed
to prohibit the operations of cooperatives. -In order to permit coopera-
tives to continue to function the Department of Agriculture recommended
IMn Executive Order excepting cooperatives from such code provisions. As
a result of such recommendations, tie President on October 23, 1933
signed Executive Order No. 6355. lj

II. Executive and Administrative Orders

This Executive Order provided that i.-; code or agreement theretofore
or thereafter approved should be construed to prohibit the payment of
patronage dividends in accordance with law by any bona fide and legi-
timate cooperative organization, including farmers cooperatives, pro-
vided such patronage dividends were paid out of actual earnings and were
not paid at the time the member makes the purchase from the cooperative
organizations.

It wil. be noted that the above Order is not in the form of an
exemption. As to codes thereafter formulated it constituted a general
policy that no code should contain provisions prohibiting the payment
of patronage dividends by cooperatives under the conditions prescribed.

lJ Copy of Executive Order No. 6355, see Exhibit No. 5.


9845




- 10 -


However, us to those codes previously approved containign provisions
prohibiting the payment of patronage dividends or susceptible of that
construction, the order operated to relieve cooperatives from such pro-
visions an& to that extent amounted to a general exemption.

The immunity of cooperatives from code provisions was further en-
larged by Executive Order 6606-A, dated February 17, 1934. i] This
Crder declared (1) That no provision in any code or agreement thereto-
fore or thereafter approved should be construed to make it a code vio-
lation to sell to or through any bona fide and legitimate cooperative
or any intervening agency of such cooperatives; (2) That no code should
be construed to prevent such cooperatives from being entitled to receive
or distribute to its members as patronage dividends or otherwise the
proceeds derived from any discounts, commission, rebate or dividends
ordinarily or by code provision, allowed to purchasers of wholesale or
middle-mon quantities; (3) The Administrator was authorized to determine,
after such hearings ana proceedings as he may deem necessary, whether in
any doubtful oase, an organization is or is not a bona fide and legi-
timate cooperative organization entitled to the benefits of this Order.

Pursuant to the above Executive Order the Administrator by an Order
dated May 18, 1934, 2/ entitled "Definition of Farmers, and Consumers
Cooperative" No. X-35, prescribed the following conditions to be ful-
filled in order that such organizations be entitled to the protection
of the Executive Order: (1) Be organized under laws of a state, terri-
tory of the District of Columbia; (2) Permit each member owning one
paid share of membership one vote only in matters affecting management
of the organization, unless otherwise provided by the law under which it
is incorporated; provided a central or regional association made up of
cooperative associations may permit voting based upon volume of busi-
ness done by members with regional association, or on the #umber of mem-
bers in the member association; (3) Operate on a cooperative basis for
the mutual benefit of members, and all income, after providing for re-
serves an! dividends on stock not-to exceed 8%, must be distributed to
members or shareholders on patronage basis at stated periods not more
frequently than semi-annually; (4) Non-member business not to exceed in
value the member business during any fiscal year; (5) Permit members
access to records to determine compensation of officers and employees,
and no salaries or commissions are to be paid except for actual ser-
vices; (6) Distribute patronage dividends to members according to amount
of business with the association; may permit such dividends of a non-
member to accumulate until they equal the value of a share of stock when
the same may be issued; patronage dividends must not be made in form of.
refund at time of purchase; no evidence of any such dividends by agree-
ment or representation to distribute a definite amount may be made; (7)
Not more than 3% of the Capital raised may be allowed for service or
organizers; (8) Conduct its affairs in the interest of the members. The
control or management may not be by non-cooperative organizations or
Persons to whom surplus savings or unreasonable compensation are pqid;
and may not be required to buy commodities from a specified non-coopera-
tive concern; (9) Comply with codes for industries in which they operate.

l/ Copy of Executive Order No. 6606-A, See Exhibit No. 6

2/ Copy of Administrative Order, Exhibit No. 7.


9845




-11 -


On Ju!:e 1', 1934, a. ruli' -.n i-tecroretrtinn -'. ,'si sued (Administra-
tion Order Y'ns. l-'P?" ,. 1"-.'..), (*1 tt. r c fect that Administrative
Order X-35 ar',li d to ?vy l'on :fi;.. a-d lecri.imn.te con,-,erative and 7as not
limited to farmers' cr1 cr:s.ieirs' orpnnizatirnn. This ruling wras made
necessary because, o' t'.ni doubt creet'd I',r th? ca-otin of X-35, i.e., "De-
finition of Farmnrs' e1d Cons'uimrs' Co.-n.'-ratives."

On October 12, 1934 Administrative Order 'o. X-98 was issued for the
purpose of clarifying the provisions of Z--ecutive Order No. 6606-A.
Order X-?8 deals vith brokera'.e commissions, rlrovidrinm that no code shall
be construed or aoolIled to m'a'-e it a violation thereof for a member to
nay a brokerage commission to s bona fide pnli legitimate cooperative ner-
forming the function for s'hich other rersors may rrorerly be uaid comnensa-
tion, and that no cognizance shall be taken of the fact that such coooera-
tive will distribute its earnings, including such brokerag-e commisr-ions,
to its members in tiie form of patronage dividends, or ti ? fact that such
members may be the nurchLasers of the products in cornniction with 71hich such
commissions were realized. (**)

III. Administration

In acordance ,ith Cf.fice .morandum 205, matters rlating to coonera-
tive organization re referrc'1 to Division 8, 'f which Mr. Linton I.
Collins was the Division Administrator. 7.is division was later named
the Public Agenci.s Division. T'.e furnter rersonrel was as follows:

Assistant fe-out:, Ad-ministrator, V. J. Clarke

Lpgal: Howard E. 7ahrernbrock'c, Sydney R. Pri-.ce,
Peter Seitz, Willian ,-ise

Research and Planning: James rorter Davis

Labor: Rose Schneiclrmann, Sydney Sufrin

Consumers: The. late Mrs. L'ary Rumsey, 1%rcer G. Johnston

Industrial: "alter Whtte

IV. 0-o.ration and effect

There has te-n considerable objectic:-. on the tart of sone industries
to the protection afforded cooperatives. The controversy was particularly
acute in the Salt Lianufacturerst i-Austry, the Code Authority for that
industry being o-oosed to the recognition of certain coo-perative organiza-
tions as bona fide distributors of their product It was orincirally due
to this controversy that Administrative Order X-98 (dealing -rith brokerage
commissions) was issued. There "as also objection from the Food Industry,
the code for this industry having definitely prohibited the payment of
brokerage to bu-wers -r to ar.its If buyers.

(*) Administration Orc'er "0os. 1,2-11 and IC6-11, Exhibit Mo. 8

(**) Order X-98, Se- Exhibit Yo. 9


9845




- 12 -


particular nbjectinn -as irectcd agaInst Administrative Order X-98,
the Nublic Arencics Division havinT received in the mnnnth of I.'ay, 1035,
over 100 letters requesting a recor.nsideratinn of this Order. To meit
these protests thc matter of rns:ible revision of Orders X-35 and X-98
was referred to a committee consisting of Uessrs. Walton Hamilton, member
of the Natinnal Industrial Recovery Board, Willard L. Thorp, member of
the Advisorv Council end 1r. Linton I. Collin-, revision Administrator.

A tentative draft of a orooised ruling was ore-oareec' ecluding the
so-called commercial coo-eratives from the definition of bona fide. and
legitimate coo-uoratives as that term w7as usrd in the Exeocutive Orders.
No formal order was actually i-Ssaed, hnoever, due to the fact that the
decision of the Sch'chter Cres- ras rcAder'd before final action by the
Cofni tt ?e.

V. Conclusion

Cooperative organizations se'm to have become firmly established in
this country. In the aggreg-ate they carry on a large volume of business.
This is especially true in the "lest. A ncre conmoreher.sive understanding
of the subject wnuls reauire a social study nf coowuratives. While much
of the controversy involved the matter of determinin.g What was to be con-
sidered the genuin- and legitimate coo-eriptive, actually it is believed
there was a more basic conflict between the t'o methods of business.
iHan;- of tIe code provisions were desired to -romote the welfare of the
particular industry with the resultant adva.ta.re to all the members of
the particular industry. This is particularly true rith regard to the
various provisions relating to*-rices and terms of sale. On the other
hand the cooperative cuts squarely through organization by industries to
the detriment of the industry but to the corres-ooncing advantage of the
producer or the consumer or both. The immediate benefit therefore to the
consumer and producer is aTnarent and ao-'ears to have been demonstrated by
the growth of large cooperative or-anizations. Whether the cooperative 0
method is of benefit to business or society generally or whether its ulti-
mate Pffects might be detrimental even to the rnroducer or consumer is a
more debatable question. It is -robable t'iat coonorativ s have not de-
velo-ed to a roint where their effects on general bus'hess can be measured
and at this stape of development, one's opinion is governed largely by
his basic philosophy of social economy. I
ti
A preliminary draft of a THistory if Coo-oeratives has been oro-osed by 3
the Public Agencies Division. Considerable ir-formation contained herein
was obtained from this preliminary draft.

Me


^45




- 1..3-


C. EXE1 TIOiS TO E .PLOY 2S liT TO7.'S OF LESS THAIT 2500 POPULATION

I, Re!..:tin: to Pre.ic.ent' .3 Reee'-.lo-nnent
Agreerie nt
II. Rel ,tiz? to Coces
III. Ooer'tion ".1U Ef...'ect

I. Relating to presire-it's Reemployment Agreement
The Tational Recovery Act, :-)roved June 13, 1933, authorized. the
President to enter into and approve voluntary agreements with persons
engaged in a trade or industry and vith labor, trade or industrial
associations, relating to an;, trade or industry.

The president's Reemployment ACreement "as issued pursuant thereto,
to remain in effect until the aooroval of a code bby the President to
which the signatory became subject or until substitutions of any of
the provisions of the Agreement (Paragraph 1). In paragraph (4) of the
Agreement it was provided that the ma2:im-nm hours fixed in paragraph (2)
and (3) thereof, were not to .apply to est.blisihnents employing not more
than t'7o persons in towns of less tl-.an 2500 po)ul.'.tion which towns were
not part of a larger trr.de area. 1

II. Relating to Coe.es

SIn Executive Order To. 6354,2 dcted October 23, 1933, it was stated
that the purp-ose of the e'emaptior. thereby conferred wa.s intended to re-
lieve small business enterprises in small tor'ns from fixed obligations
which might inJose exce .tional hardship but that it was expected that
all such enterprises would conform to the fullest extent possible -ith
the requirements which -ould have been otherwise ooligr.tory upon them,
The -Order -.rovided that the President's Reeiyjlorient Agreement should
not be held. to apply to employers engaged only loca.ll-" in retail trade
or in local service industries (not in interstate conilerce) 'ho do not
employ more than five persons and are located in towns of less than
2500 population (according to the 1970 Federal Census) which are not
in the immediate trade erea of a city of a larger population except
that employers who have signed the Agreemecnt and desire to continue
to comply therewith may do so. It was further provided that the exemp-
tion should also apply to the same extent to those employers signing
the. PRA but at that tin.e subject to a substituted code from those ob-
ligations not voluntarily, assumed under such code.

It will be noted that Executive Order 6354 differs principally
from the provision in PRA in that: (1) PP.A relates to all establish-
ments, the Order effects only retail trade and local service indus-
tries; (2) PRA limits the exemption to establishments employin.r not
more than two persons, the Order limits the exemption to taose emoloy-
ing not more than five persons; (a) the former releases employers solely
from the provisions of PEA whereas the latter releases signatory parties

Bulletin To. 3 containing PRA, Exhibit io. 10

2
Executive Order ITo. 6354, Exhibit o0, 11


9845




- 14 -


tn P..A nMt r:l i'fr-n t..e -r.'r'-*,. r of PFA L'.it to the came extent from
--'.*- n,. vli.-n, *n'" t-1 rlLli-iti-n: not volunt:.rily azsumed by them under


.. nn.,' Ma::y 1 l'K3, ',rz-,ie ..:- Z?. r -r 1rn":-' c -.e c-nly iccilly in retail
tradr or l.)c-.l rcrvic- trade, who -T.!rnt not more th-n three establish-
:.OrLt:- i:n t y .". -f lers "'.n 5-. 5 -,ul-4. tion F.nd nnt in the iipmedia.te
tr"-'e :r.-a ,f a lar;.r to-'n. vo'il. bc nxomn it fro!,- thie lreidlent's Re-
e*m I"M,!,r..t A. r'repnrnt ar.: th-r.e -ririions of apnrrovei codes relating
t t '-.rv, v.'a',es, m:i r-i'ur ',riceG of .;"fc.L.cdi:t- or services and collec-
ti-,ni *V 3.3.-...ent., ,:'cc-',t inzoflir az emloy-rs .nfiht signify their
intcnti.-n to "cc Lr-and.

.. r.f1c"t o.f t.he ? ..-nd..e;nt ..z tc extend. t.e c" ..mrtion to employ-
Prc v.' Trmcnt'c not m"re tbh-in tree eztablislunentz rather tien five,
a: vrviced tL. t ;, previous Or-cler :.nd allo' to exep-mt eriployers not only
fr-r" the provisions of FRA but froi. haur, wae, n.iniuun price and assess-
m-nt collection Tir.visiZns of codes a: well.
4
A.lnini:-.trative Order X7- datpd Aucast 6, 1934, proscribed rules
and regi-lationz relating to th.n ap-olication of Zxecrtivc Order 6710
and dc.:i-^ates the "retail or l-)cal se-vi2e trades" to be: Ba dring
(retail), I:otr Vehicle Storac. and Parking, Ret-.il -'iod and Grocery,
Ret-.il Je.velry, K-etail Tobacco, -.etail Trade (incl;.'irng -ruc and Book-
-eller:), Barber Shop, Bowling an: Lilliard 1pcroting Tr-'i:.e, Cleaning
arn, D,-yeing La'.rarr,, Rral Esttit t r,:era.re, S:.oc fleuuiiLa'er, Hotel,and
r.xzta-arr.nt In.'ustry and the foll.vri:ing industrie:- :r trade not then
r.difipdi, C.n-fectionprs, :.ilkl: at -..etail, Be-auty Parlors and such other
tr-''r-. or inuztrie. as the Ar'r..inistr-tor wv).-ld frolm time to time desir-n-
at-, TI.- term "trvmr" vwns ,lzo d- fi:'irc an' i the con.-itions un er v.'-ieh
"t.vn of I less th' -a :5 r ropulat inn" were deemed t) be "in the immediate
trauri ar-a" of a lrcnr city. :'.nu"facturing -.n'.'holer'.ling. %.Pre ec-
"ludnd fr.r-m the Ordr. T-h.c method of relief w.'a -nroviCed for employers
net ln"l',".d in the. oxcrT.,ticn b-at '.--ho claimed t-, be injured from com-
netiti n if t;o:p e'-er. trd. T'.hoso Fn;-r,,ed both in .,ne cf t'hec above C
d-zic-ratod trade- or incdu.ftries, !.-nd a business not so included, where .
sz'-ih nporationz: ,'ere not r-adily :"-i,rcg'ble ".ere exempt only were the
Ocinr::z cnvnred by tiat. order constituted tn-c ernmloyerts principal line
../ :-i"n r.d-uct c-onzitutted mc.re t'.:.n 50 ,er cr-et of the gross sales.
W..r' tie b'.tinoss vwas zegrrgrible only the department whose' princi-oal
'c2Z1:r: (a:- at",vm dpfinrd) covered by t.!c trades )r i-ndustries enumer-
atod n.CV vC r. xxe:;tytd. nWhen part of :I business '/ac exemnted the em-
r.l-..r .-'as not lihbly f'.r oaces:-.,cntz "Lonsod u-oni th-.P-t -art. DErnloyers
'- :_.1i'-. vita cidrs to the extent not excm-ted were entitled to d.is-
Trlay ":' i.:-.,isnia.

3 ."7"ini.trptive .rdc-- :'o. 46-I d.ted 1.y 29, 1234, it was ruled
t.-. i.-c r: :.-. ...- d in tr-e Motor Ve':icle Rt- ilinfc Trade were bound
-cy .t* d f-- trt i..try rr -rdlc-,: of t.-C' nie of the town in
,," ? .' r-- 1 ...*. ,t, --~'. U J "~
..... "t "' 'f 'Cz ins: v-ac located.

III, &..rrati-n andL ffnet
--t^n t...:_tl:c .ib-,tvo ord-.rz thnLr.- "',s little further adninistrati_.
E.:ec.ti/ve r-' .E:71 -, E:hicit 7'o. 12
Ar3i-. trnEi-,r r,'rr X-72, B::h-.ioit Mo. 13
93 45




-15-


action. The Code Authorities investigated 2nd followed up the matter
of what to.ms were entitled to the exeTrptionr. The United States Census
records were ordinarily conclusive uioon the question of whether or not
the population of a particular town was less than 2500. However Adminis-
trative Order X-72-1, dated August 28, 1934, recited that the census
of 1930 listed the town of Glasgow, Montana as a town of less than 2500
but that it appearing that the population of that town was then in excess
of 2500 it was ordered that for the purposes of the administration of
Executive Order 6710 such town should be deemed to have a population in
excess of 2500.

Question also arose as to whether a particular community was within
the immediate trade area of a larger town. This arose in a number of
instances concerning factory communities located outside the boundaries
of towns. However these controversies were usually settled without the
necessity of official rulings. On the whole the exemption to establish-
ments in towns of less than 2500co population seemed to have become oper-
ative with very little complications.


9845




- 16 -


' X7. -.. S -'-' So 1 2VICln -.L-5
I. ",ri~i.i .-f 3rd'-r
I!. E:"-cutive ru* A.i.'.r.i'Li Lr -,.ive Orcerr-
II. c: rr. t i i ;nr. i r.t
i. Crin". of Orlc.r
5 -:i .L .' C ... ter v- v P in. i, cvn- ist- of tiose
tr- ..- ., ir'ust'ri s ''.ich ,jcror.: o : r: :,icl serviccr such as b' rber
..,- ", I', :'i.' n : d-:.'ci.*.'y .:te s eotc. At th'e ti. '? "f the z., rovnl
of t r c: c -;:zir cr- ie t-.t .". e-.:r- by 7rc 'resen.ta.tives
of t'.:.-c w 2trie' :.nct :,r -r nJ:t, c'. vier i ti'.:.ir surelyy loc2-l or
:t- -- . .r. c.,-.-jr ct-..r, t"r .t ..*.il I 'iu;tri'1 .ecr.-ry Act w7? a- 'l.ic..'o]
...._ki Or,'.er a r:vi .: t..c Co p -.ir thie -...rter Shop Trr..de (l-To. .9E
. i C.-C'. ,t ;lis co.c hr,..., not tec- e ef: cfiective -urintil ccrtc.in
S,::,. I1 ". e'r i jn .i ]o fortn c..r',.: ful ii.1led, in- nLiincL the require:'..ent
. .c C-,-'c Authorit, ,z ri o'tc th, co-undn.rl c f trade ireas, ezt:.ulis
I. il -,"'.*:.nitr tivc o?-. :r such tr e are...s a. Z -t the Co-le Author
en L i..t'i 2 mricc zt tbi"iz3.tzon .oreoent in such tr--'.e area v'ith the
Frc i:nt :,.e Lrc. l AcIr;inistr,'tiv-e B3o'r' r.nr n 't e- tL'ip.n 7,', of the
i'Z. 6cr -f nc..,ber- of th.e tr ce in suc. WrCa. (i) Simillx"r c, ritions '-ie'-e
en'u._,"'icd in L.-e Codle fr.r the La-undry Tr--'-e. (2)

T'. Tr.. fr servi .ce te..ar: :c eriy inc. ectu-l, even
as tc in.liutric i.i rhich ?o'. :. oE cfe e. fective. Tiese industries
- i:. :r:err....s n.-,il entcr-Dric-c. T.-e"c e:-ist' in -.hi, branch
nf ini t.': r.'.,ooly, .a hij her .l.cr:ent -.,r ,f rjn-:!flln cornm inie- or
' r'-l.t .tr -.ri et'rc ?n., tco=. e.lP!I:r i -.1 o'.:i c..i e :-.an, t'iar. i:. anry otuier
cr:-i.- ..ru.-try. As a rc-:ul-., j-,,rizn.t4on in these industrieF wac
i. i -,.it.* T.,e n'et rcoult '" r ".opt complete bref]-C.ovim in co'"e
r.rr. *\r .v- *i A ...cr c ..i .it'' _n-cri t- n '.f t'.e co:maitions ?revr.ii i,;
t 7"m.: -i::'e '-i! ..... Oc fui i tC. C,.r.'r Histo.rie. for incustrie- .

7i. Z::cut ivc Ar. :., A-.. i ctat-.,tive Or '.re

In -racr to -ect `:isn -rit tin., executive Order No. 6723 u:as
is .c'- b:, the Przccicd at ,-,i My 2C, 1Th*1:. It -nrovid,.d thit "l -rn-
visim" i-;l ",o'-,- :'.f cu-'. c7r.rvicc tr.,dcoc nr inriuctries -'s --hould
:.rt ":.;tccr ce ae1i.-.-a:ed b,.- the Ac.iinistr-"tor wcre .-uspcnded, exce-pt
t,..,c ,f cil," L: -r :;inirn'w H) r, I.ini:muui Boy rnd the rnnd..tory
)*n:,.':iz :r.z -jf Secti in 7(a) .:LI. 1ii (') rf t1le ITti -nal Inc.ust'i-.l
Rc'.e .-, Act, .,rovi..r'. -'.at in an- Icc .litZ, in ""1-ich 35 of Lhe Tierr,-
r: Lc. tr .'p or inu ...L"y fhll. r.er t- abide by a
c )L f:.- th'..t c.li ., the Aili:.istrccor, aft-r ap rov?. 1 of



(1) ol. IX, .':,'. 3C]. Y'. Volu:e" C'..e

(.') V)l. VI, "',' e ?.-I :Co'-'.c Vo .. *f C


"?-.":4'5u.: ,f C




. 17 -


such code, v.s authorized c.i. o,1CPr ,i.to such -.t-ree-i.ents. (7)

In tic? let,.er of reco, -'en;Ld.m,.ui ri.t, ... 't o tile A inini stra tor
to the Fre:-i'. ?.'.'L it ,'.- ....' L z..,jdies of the o:?eraiti)n and
effect of co.".L S for c rt- :-.. tr-. 'm *n 4;'.'.LL tries indicated'.
the necer-ity f-ir rclie-, L.- A ,_i t- ecA ',yi/e acjninistr-tive
burden in securinL., "il ci ,)rt r,, ti;i- c co ', '.n':'. to -ncrmit of more
effective rCdmn.'.nistr ti-'n ,, oth:-- ccdoz iavi.ir greater concern with
the industri.-al structure, wh-ch .zd ccn .Ldulv h:.n.pered thereby.

By Executive Order No. 6755-A, (4) dctcd June E, 195"4, the
President offered to enter into a.n .rce:; .icnt ,'i th number. of Cuch
service trades not theretofore codified, on condition that in any
locality eighty-five ,)oqr cent of the members thereof should agree
to abide oy a local code of tr.a,e -ractices cu.c"t,- ed by them for
tnat locality.

Executive Orcer 672N,, ,.lrvinc )-ovi.e'O. thjt the Auministrator
should cC.esign-)te the tr..&e, :c./, i.ust'ie" incl.c.e uir.'.er the Order
the following Adminict-:;tive 5-"..r r.::ere icc-ued:

Or,.er ]!oe. X-- ated :i.,' .xR, l?3i, dcsi noting M.otor Vehicles;
Stora,.e & P:2.c-:irg; 3o', .1 & .- :.ii r(,s; 1-rber Shop; Cleaning
& Dyeiin; Advertisi:.L Tjispl:-y Instr 1 nation & Ad.vertising; Distri-
buting Tra de.

Order No. X-5C, d-..Le-' J'_.i 15, l' 4, Launr ry.

Order Ho. X-54, date., JuLe 2, 1-27A, Hotl.

On June 2', 19-4, Ac Fmlnistr:Ativ6 Or.der X-53, was issued pre-
scribing rules at ref'u1,ti: -m with re- 'ect to the o--erabion of Execu-
tive Order 67.25, inc> .i..-.; the conditi,.-- m. o.r vihich members subject
to the OrLder were entitle. O di-1:..y the Ilr Fa-le. It was also
provided tiat a'l. .art- of ti' d t -i Ti-). coK'es, to the extent nec-
essary, were in. effect for t i- ic .s of the operation of Execu-
tive Ordr'er 6723, exce-t tr. e r:.ctice ar.. codc.e administration pro-
visions. (5)

As previousl;- st te. the -'.rber Sh-,r an1. the L-n'dry Tra.de Codes
were not to becoDme o-cr-ti-e untill ti-.e f-.lfillment of the conditions
prescribed in the Or.'.er of A.,,rov.l.. At he time of the above
Executive Order, those con.. itionc hki na.t b-cn fulfilled, and


(3-) Executive Order T-.-o 3,- -, 6 :.) ioit ITO.
(K) Executive Order NIo. (5756-A, Lxhibit Ioo. 15

(5) Akrministr,..tive Or.'.rr ::-53, 2xhlbit Ho. 16


9845




- 18 -


h. xncc s'.kCi O-rCLrs v',.r;: n t *1ff -ctiv.i. ,The A cni.-ist-rative Order,
tj-.-r-f r 2.v-' such -,'rovisi n effective f. r th. *irp'se of on-
_rr.ti L Lu r Zxecutivc Orr .r 3/23.

III. Oper"ti -n n f ect

.>c -xjcutive Order wn.s n t flav rably received by the trades
-nd inc'ustrics affected. C-nsiderabl.- off:rt had -reviously been
r.Tde tL .r_anize t:-.s. industries mn-.re -effectively, Liany were en-
ct-'av: rind t Lstablish minizmuin rrice nr.visi-:-s. A series of con-
f-.r.:nces ;.'crc boinb hJid in various -narts -f the United States with
Svi'1.v, of rzmcdying; tinu breacj-.,vn in c)d6 ccrcoliaice in the Hotel
Industry,, c-a. a movermnnt was -n feet to establish minimum rates.
Th-. Ordor in quusti,-.n, of c-ursJ, nullified all such efforts.

Cede Auti,:.ritis in th- industries affected wJre, in effect,
nb--lish.d b,- ths Order. Th,;rj was, therefore, considerable resent-
mont fr:u. these industries.

On Jun2. 20, 1934, the Zxecutive Comittej of the Cnde Auth:-.r-
ity for tl.c Cleaning and Dyeinb Trade wrt-3 tile President "th-t this
C>.c Auth-rity considers th.t the cdec for the- In.'ustry was no
ion&-r in f)rce a:..d eff.-ct with res'e)ct to rtnv .f its 't-'ovisions aCond
tlhat, so far as it .was with-in t".-ir )o';.7r, thi assent to this code
is th-reby vithdrawn."(6)

On Jtvi.- .36, 1034, tl.o Acministratc.r replied that inasmuch as
the administrative pr-.,visi-ns :f thi Cleoaninz and Dyeing Code wcre
sus)-ende'. by- Bxccutivo Order 5723, th.e Cc,.e Authrrity authorized
under such -r':visi :ns was, ?ccordingly, suspendor' and .could n:.t,
thre-f:,r.-, at that time, be deemed t- be rn-)rosentativ: of that
Trad: hrve authority t; act in its behalf, hence the assent
t. this code could. n-.t b, '.:ithdr2.wrn by th-t body. (7)

Pursuant t: the Zxecutiv- Order, Iccal codes wore submitted by
th. f-lloring industri..s ancd trades -

Cleanir,n. and Dyc-in, submitted 3.n reximatcly 54 local codes,
n-arly 2.11 :f which c,..ntained provisions f-.r miinimum prices.

Sn:_ Rebuildin. Industry submitted 277 local codes, nearly
all' j'h71iich crntaincd orovisicns for minimum prices.

Brrb. r S3h Industry s-ubmittcd 277 icc.cl codes, 'll of
"hich contain-d requests for minimum -onricas.



(.) C'p:' :' ltt-r fr C-_. C'omG itteo Exhibit ':o. 17

(7) :py ":, th2 uba-vc letter Zxhibit :io. 18


9S.45




- 19 -


M,[ot-)r Vehlcle -'-,, Stu'...,, rx. .i1>t .ed. 3.

La u'.r' Tr (.dIe sL uLJf1 i t r,( C. 1.

.The t--.. .i.. i..('W t *-- C n.,L nir.ntilne sm.bmitced no codeca

The ,*olic,- c:, fI *..' :- rut o '",. rove 'r,",vio1 ns for esta-olish-
inx; minimum -rices. The -efre, of Ic. a! c' c lmitt' ,c there were
a -roved c;i' four i. t'-.c SL-oe Re uildi.i :.-.. t'o iaCleaning -'r.Dye-
iiic. ., o :3 coLc v, royv. ic L-.jt crnt i. mi"'iimin -rice provisions.
(8)

Since t.-, Code Authority v'as the enforcement as wvell -. the
adminictretive as"ercy of in.ustr?',, t'-,e cli,,in..tijn of such .o'.ics
resulte'-., in still reaLer cdizro,-arc "or thee code provisions re-
mainin, in effect, i.e., l-wor 'rovisi.:. CoCe cnforcr'.-2t in
those tr-c-es or i.nCustries oere virtua.l>,' dan'oned n'' nmn-com-
pliance oecz_.ie Le.er:.i. This vituz.tL.:n L ntilnue.b until the date
of the Executive Oiffcr susoc lndiCi .' coce-.



(3) See also Ci-.ter IV of .reci.cn;r une'r Sczt .ons 4 (a) and. 7 (b)
of "I. I. A. .", b Cvcstc,-. A. Giblin, A.h;i:iistrr-tion Stu' ies.


9345





- 20 -


S* T J -. ^ L "--- a.J Y__J'_ --_' AL
... -; "'" 1 " I 5 L "' : -; V SP-T .rJ. "DLS

I. ri i "i "- V'c "'
,r -j.. r
liT. "' rr.- ti n an) ,"fect
TI. Conci.v.i-in


-. 5riin of C;rder

An r. 1 )lic .ti-n, on be".alf :" v:.e :.os.t-.i t s of the
r.itcJ t-.tc. su. :".rte. j ,...blic ubccr-.,t:rn cr enz.;ivinenrt and not
r-m :-ted for m-r fit, ,-n.:...,,e r ':r .'n eyeii tion 1'ru.: ?.ny Code to all
,'hx.str';.: or tracle ..e.;bier- e 7. ;C ?.1in i ,:it:i -uc.. .i, s )ita] s. As a
result cf such -.. icti., ALLtr.i.ti'.t .vt. r'er X-. via's signed
bv .'.u. 3. Jo..nscn, Admin strat: r, u t,-n te reco-,icaentzt:.n of
A. D. '..itcsii'e, Divisioh Ac'.nin: st-Y.t.,r.

I1. lie CrCe-'e

Thec essence of t-.d ,rder is ruote'.l E.3 iafllo.;s:

"it is '.ercb7 :r,.'er,2d tl..t thc. se members of
industries sAbject t- cc:tes of rir _22.:.:.eti-
t-L, whIc sell o :c na; ell su)_..l .- o r ..ts.terials
to 1 .:c*-It?.ls z t.-e Unite(d 3t tLs ,Aiic:. arce
'u0orted b; :-ablic siUsc:di':ticn o-' encd-wmnent,
t-nd not o-,er tc',. i- r -"r-. it, vit: In t.ie limita-
tior.ns .er.n.-_n,'t:r -jrcv eLe(., be. adI t'-ey n.re
...c-ebo exei._'ted. fr..,r c P..ce C -..ti. 'r:vis jun.
cf suc.. codes r-vernin sa-es, roitd, :-?v-
ever, tl.at tCe e:.e.ntin --r'.b" ranted s..-all.
be 1.im, tc'. t- on o)er-.tive only in connection
:it:.- sac sale- :.iade by suc. rv...iberb tc such.I
i'.-tj tuti ,ns. "1

Further -prLvi.ion was .SaV!Q f. r it t: trk.e effect in ten
(1,c) ..la -, Anfless ot:.erx,.Lb .irdereK by tie .L.-ni tractorr and was I-ted
Jn.i -r., .'. J H.

iII. 'rr.t -:. rn n a.cct

l1c dcubt t'.e .-r oso c: t- is cr'.er was to relieve c-.ari-
t-,'be hrs -tl s from -.ur'.m -n t-'ie bi'r-len of nx.tiunal recovery and
t..e--b2 _ncr'Cse t.-c usefulnes.s of t:.e fuii6.s ct their dis-nosal. ZoVw-
ever, tl.n .-dor Le.l scarcol, been s-.ne, w en objectionss to it came
:o'..rln, int: t:-e 'RA. Th.-.se inluEtrie' rlyin& larel- u-on hospital
tr:le a-.'. w. Oc )nere op-,r..txn: under c-,&a3= or t.e PRA made objection



3Se :..ib It l" 1. 1D.

934_5


Ii




- 21 -


on the k:rnunt.:" t'.at th.Iey coLi.i. nt '-el below establis-ed prices and
coimly wt the '-.-.it f t .. c .e: c.r P.?A :ts to hIurs and wages.
As a result oi th;.sc 'r t'i=t.;, Aio::ti., trative Order X-5-, was issued
February t, '.. 3y the t-.';; i t.aLt :r.er, t-eo rc.visions of
Admninistrat.ive r,'ler X-4' vur .ot7 : -'Cr )e.ri.-d of t'hirty (30.) .ays
from late cf X-3 to -Ive ciLr', :-..- n tr t'ic -,ujccti-ns made.
The crdcr rescrrv,'. t:'e rijlIt tU t..c Atit i. .'trr'tr t. susend t-he
effective date th.eroof by fu:'t--.r rC&.r.

In the petitionn or brief 3/', ctec0. ?ebrry, 26, 1.o3-, nd
presented on be.-clf of the X-' a- an"' EZectro-Ie-icm.l Products Gro )s
of tl'-e 7lectricaJ i.,irxufacturin0o Industry, a jr;test was ;?ade t:;, t'-he
Stayin.. >. er fci X-'". azd t..e continuation cf X-4. Tie follovinj ex-
cerits fromi that document seaem to give a. picture of conditions during
the -eriod cf X-5:

"As soon as it becanie Lenert.ll. kno,.cn' that
Order X-C:, d-rted January ?3, 1934, .1ci been
issud, a very mnrlked decreasee in jusinLss
occurred in.i the X-Ray arim. .lectro-:;ed. cal
GrcL)ps, due to t-.-e ooct. t'.-t t'.e h"o:-.-m7 talks
of t1lis country dlenim, od exemptions from
th.-e ccJ-. for t'..eir ?A.rc.rt:-e ; since t-,e
ij-su,.j.c, of t'..e StR.int hdor, al-l or..,rs
of c'st..:ners -.,ve oeen '.,.. in abeyance
waen:-hn; the finr.?.l decision -: this latter.
This ctacina.tionr in business will continue,in
our opinion, r"... long- as there is any delay in
dRcidiJi wh'et er t-:. ori inal ?rdt! r X-': will
be a lovwol to stand ,'r will be ,era&r.aently
withCdrw.mn. B.. sed on the Antici r.ti.-r th-at
Crde' X-4 will be aLl]i;ed to rc.r.in in effect
after i,.rc. 5t1", c.-i. oe,-it-j.l i 13altimore -has
a].irady Ldem-nded ojf us ;. 1'3, d sccunt rn aur
proeuctt whic.. it a.nt c, -'ts 7L^."'c 2-S-'Y.

"ie are ni.. longer -.nter -;te'l in a f-urth.er stay
of t--e original ord-r and '..rewit nit
factu-cl data wlic.,. we know v'ill furnish suffi-
cient information to warrant t.e 'R.1\ t- with-
draw ,'Qr.er X-- )er,.. nt..4ntly, at least insofar
as it relates t;. the X-_tty an; ,lectro-: edi-
cal 9rc.ducts.



J/ See Exibit iTo. 2-0.

3/ This document is filed in folder marked "Division VIi7TTI-
Charitable Institutions X-' S. R. Prince, Jr. "
and at te tire cf this wrr.tin'; is in the custody of
Effie Lee Lo-re, formerly Act:'.ng Executive Assistant,
Division VIII.


'9845






L ~


" Jc .c.::,L'..lt3e' t. t t e -,Itentior, ,;-.c1C of
t..e I -s-'U,.:JIce :,i r:.1-er X-' is CC,.-L ien.l-ao? e.
-J. z -!u
t ., .i .aV ittl,: cct. ct o.n ..o.t -n .. -
t -' ., -.uc- ,. t c-- ... ,.'" fcC ,' i
r.rn-t.-rc, l i-.cne, ;.:i!. t.- i:x.r2 -'.j...jr t/
ot.er- itc:;s i-.rc..".sec1 'y -_ .. t b e.c-.
/ear. Tr.-es.- lz..tter nane'-. n^\..tries :'r,?y
ini it possible e to rcffur t'-he o.'-,.t'ls,
s Ceci- . countsts on )rc .r-e. bec.'.aso
tV.eir t:,tal sales to -..s-ntrl. -.re rinet :-Lore
t:.an 5 or ]0, o.' t'.c total s.-les c"& suc.:
r>Wustr-es." It is mcr .>.rnort:,nt t- n-te
t -.t Cn tie c-t:e 'f t.-t X-a?.y an' 21.ectrc-
,:edic[.l Groun1 cf V'tu Electricel lslauf.-ctur-
in, Ind.-Lstry, oDr s-'.les t-), hos- itr.ls is 60,
ol .'air '*mus-se-s anLC closely al1ief' .-.re our
sales to dcctsrs of -.6, additional, tlus
a.cc: -unt-nL, for all but 4 o, -.ur sales. flere-
fhre, we )resent t'h.> brief, *asl:in, t-.at t.-e
,n.-nuH.cturer's of NX-Ray --m.Q Electrc-::edical
rod,:ducts be exerftcd under -4.



"UnC'.er t-e tcnnm oa" t e .-,ri jn".l Cr." X-4i we
fr-.ij to see :-ow our ;.anuifacturer.3 can differ-
entiate betv.,een sales made t%' Fny class of
..&-'it"ls, duo tD the fact t.h-at it is r.!n.:st
i.s s.ssble t: (.of.cfne the so-called I nriv-nte
..- jitel' or t c se -n.t,? t1.s v .--c are su)-
dcrte. izblbc ,ub3cri"^ticn-3 mi..l endo.vnments
en.. not o~errted for "rf:t. (A'. an exaMDlO,
ii t'.e City "f eal t .icre, all -ics.:,itLs re-
cei.ve a. set min every yec.r fro:.. t'-e State of
.ryland r r-:i tL.e Citj; Jon.ms iop'1in3
.os.itail receives E. ver- substc.nt"..al suwa 3,..ch
.eL,..r frc..i t'.e State. Another ir.tance is t.-e
.-,s'.'s. : tal in 3-ookl.jn, 1'e.., York, v.--cl.
s r-an for ,roj.'et -nd, ,n t-..e t_.er .r.n., re-
ce,.ve- free ao-bulaace service fr;, th.e .it/
of e-..' York, -aid for by ta.xes.)



"..r .-r X-- ...l:es no st7te.ients &S to ..._et..er
exe;.; te.. ..s-itals incl.t:Le t--:--e U -s itals
su trte;'. by t-.xes. -7e believe tC.at t e-' are,
an i.- n-t, the CrC.cr will scon l-ave t: be ex-
ten.'el t- include tVwn. O*****

"T..: n .. t:-n C..;n -.rises as to w'.,et.er t'is
:rfter wo"i.: nr- t so.-n be --Lrt-_er c;ten .e-1. to
ec.:tc; ti-nvtl institutions, tax-su:.jorte. and


9345





- 23 -


ot-erv: .!-e, v/L c.. us' X-k 1:.'. :,t. 7'.ctr--,..eLical
." I "' ./^ i.", t,

.'e es 'ectfua!ly cae!l &.ur 'ttentlon t. the fact
t'.'t Grnr. X-..'. .:-03 n)t prevent --urc'_asini by
.c s ,'' t..3 s f-n,'. t QeI,.' : "-.el1 i/,; t .' :tl.er-". "We
knrw t-,.t cur" r:-:u)r c:n ut :aE .nt-tn ce.es tc
,l ctcrs on puLti.-.ed Drices .-it.in tli-- C.de
re. v.lati ins --rd at t4'e s- ..,c ti.n.i T--. t-1 ._ -
t:'-tJ-.s witL. t- te1 d -r 'A s t sr. c, of
all exist..ng codes. '.7e bel ieve t"-he i'.ctors
will natur. liv unr:c se,' t*.ro:u,-.. iC:.s it-- or
te.,u-.:' cnurl 'rces en,- t at would br-ing
-rct.LCt lL..:. all .f our ba.]ncss utIer exemc-
tion fr:r'. cc !es ;n sr.le-."

T-.e '.ocuxne:it ,,'.e, c.,n to ,Aoint ouat t'-at t- per,:it t-,7 application
of X-4 tc t-ePr 1inc'.-t'r' .1lJ. l1e:-ve t'-. in'.ivi.ua.l manufacturers and
venCors t[-e ri,;.t to let,-frm-ng v;-.-t..er .' ny .spita] was :r lwas not
with'.in thie sco't r74 t-.e ort- .;r, tCr t A- \ctux. foster )rice-cutting and
discrimination anl ot-_er unZ'.ir tr;: "e Tr.-ctclcer.

In res --...nse t; t-'e vi r'..as ; )r.. t :,t- s .'t .e, Arininistrative
Crder X-r .. wa- iPsaa.ed, Lrrcz 3, 219 T ii s rider mi.ere )crmanment
thie stw'y create' by X-5 ins-fa' ac it affected thie X-Ra.; and. Zlectro-
iedic,C.i Apparrtu as uovcro.'. bL t.-- C'-.de. fr t-he Elctrcal i;axnu-
facturin; Indu-str', th-e Scient-f'-c Appart.-.. ini-ati'? cnc. nil othcr
in-lustri s t.at et-.tjl is..e'l t: tie sat'. -facti-r. :nf th.e A...ii.nitra.tor
t"-.t a sutb Lrt!,! ,tr ..rt of t e-- su clie':- o.r .':t.irial. s -.ere sold to
AiosAitl.s cver_...L b, X--'1 )lso :f-t..--'ed t-ic- Adrministrator thi -t
justice re.i'are'- t" c rc,-e' 0r::t('. te b rd ,r X-3, T.is Crder was
si ned by .uL" S. Jcr-..--o,- l-i ..tr,-tc r r :r,,--. trial .Recovery,
Sur-n t- .e reccraLren1.k-tin 1i A!. it;: =:-c.de, Division AdministrE.tor.

Later it va,. eFtabli e. to t. c -. ti.ia&.ticn of tl'-e Adminis-
trator t.-.t r s t'.b at.,tal f.t f t-e t j. .-l e a.nJ. -a.terials -f t'he
sinjulliti Al.':.r'atis 3ub.'iv .s.'.n Jf t.' -1.ectrlc7I -,.anufacturi:.-_ In-
.-ustry were solJ. to ..s )t.AKs .:j t e Un-teL Stttes su,-'ortec. by
public s-.scrf u"-on this i ln11 AC-. nistr.t.ve "er -. /, sued A 1r 21,
1934, .t'-"ed '_erLiaC.nent."Ly t.-e ta'3.' X--' i-n s, far as it affected
ti is n..u:-ltr;'.

AdmJni.-istrrtJve s*rder t- v Was i-sued lay 23, -14. TL'is
crier mcdf;Led X--- s- rs t: rq,..ir, mL.aobers of t.-e 3' tur.in*-oi.uS Coal
Industry, t--.i: .7 .-lesle Co.1 In...uc- trv Fn-- tl-e -etil 5lid Tuel I-'I-
'A.ustr: t- fa' ly cc... ly wit t-.. r3quire.ient: o C-.P.al CO:dFs in sell-



A/ See 3:' ib.t -. 21.

3/ Se Bx ibit Io. 22.


See x1._:ibit :-o. 23.





- 24 -


in,, coal L- itl S. t-e ,h.rier stated the r-.'n f,'r t.ie issuance
;- t t ob.jCct, r. s iald been Ie. t 3 t-' ?r:cv-S -i." of :-4 by me:,bers
, :, t- C:." T-,,lu:try, n.. t.,-.t t iad beeiL e-t'-bl'.s-.ed tc. t'.e satis-
f-.cti n c;' t..c AC.7ninistr tor t .t justice r2nouire: t'. :,icdifi cation.
T t n t.-ce-bl: t'-.At t-.e recitation clause 4cr'- net ol-, "th.t a
sub -.t-t.:1 ).rt o-:' t cir su' p-! i cs or :-:.,torr-:,ln r-ro "ol to such
.... t -" -; et -1t 'n t.3 St...inL. u e cf :2-3

T.c rec rd.'d s'.cwv t'ir-.t `,.ndr-st:-y "ie..u.er-w. w':. '-.ad. c-nsi-ler.ble
,'.eali..1; v/ithi hro ital: an. '.ierc subject t' a c-'.e or a PTA made
ccsic',.prabl.e objection t., X-4 in s 17r x t iA ffecta-1. t.ieir indus-
try, bec use t. c c:.:.er, ii. -."? ct, r r. ij.: ted. t. en.i frrm r'.ealin.-
wvit...t. o-:.'tE.ls. Sich '.-n ei--'ect re.;ulte'. ,rc s itn' s refusing
t- .al v:it.. Fuc' mernb-ers wvitlout a suostant.a] retc.-cti':.: in )rices.
In c -e. wvl ere .fe::.bers ; c. code rf-.fased t: race -r-ce-- to
. S-:tn-.s, .'clcs e verc I-.ln, t ent:.i'el.y curtailed, :-en'- ng r. doter-
.'..nfrtI-r i t-.e AL.m n-i :tr'.t:-.' z.- t. ,..et.-.r c.r n' t su-cl- industry
:,c.xbers s-.uld c ).-n.y witi, t.-ic rovi si-ns o- t..-eir coa.e. TIis
ccnr.it,"n br-uj.t about consdcrer.ble c,;Is-.n c-nc'rnin.C t'.e
:rlcr X-- during, tie e'-rly inm-cxt :: actc-?, its issUrfice, vi.-CA V.m,.S to
a -rcat ex;:tent corrected b.y Adm'.nitrntiva ('o.c'rs X-S, X--' end
JX-X -` c.t


IV. CcnclaLsiens

Th.e records indicate tlhet t-i. .e",e'.-sin- a.. brcuj"it
about a c;oclition wv.-ere t..e nu.:.ber of c o 'e r m'.i". n. c rr.trule
.ic s)_t"l zti it.n n whole -r in :y.rt r.-al. r,'atly increased over
p)re-'..e)i'essi:n ties S.I. l. t l ei.e..so t .' s s'i-scr: 'ti-n .nl. done.-
ti:n- t. ,i-. .;taiv h;c.i rec'.e-" .m c.u-. lo-w..,r level, tlus Alacing
u.-o. t.P olu.derr 01 t:-e institute rs & burc-en vwi--c.. tl-ey were
financi.illy., unable tr carry. To mr.ke t e cs-. t-ls .'rc-.ase
sui,. ieS at t: c. i,-cra-'ae" :.' r.cc3 caused by t.'- c-sdev a:. P_-A wou- d
bu't -reffce t'Leir ability to carry t'-e stcr.dily inrcre. sI.n burden.
T'-,.e Actir-istrative Crder X-4 ...C tie effect :i dis.tributin,: this
bur..en ar..on, in.--utr a,.d because f t-.i: --csuit t'.se industries
w.i3. s :x.p?-j r ) roducti-n v-.' utilized by os ils were given n re-
lief from t -e ,r'ler. 7ith ti.ere l1st-,nent icne'. 1ndi'.C-1tries being
excluded', frrc.-, t:-.e ..)ovii )ns of X-.!, t'.i t ):rtiOl: of t.ne extra
Jlrlen :.f t- e '.os 'itr- s wi'.'.c- was s. lfteC t _nxtu.rtr' was spread
...n; L,:. ustry members w;:' --.e :rer.t iaj -rLt. o0 2-:ales; -,ere made in
c i-.f.r.. -i tc coee reu!E-.ticns.


3845




- 25 -


7. ~ADI CAPP'D ORDERSS



I. Ori ir of Order
II. T:c:-tive Order !T0. 1".6-F
I.I. Pronc-,.'Lre
IV. S'-m.n.r'" of Administration b'" Labor
D-ioart-nment


I. Oiigin of Order

Thn c6odification o-:' industry nresente3 the problemm of the effect
u-.)on tCie continued e.ir.loyznent n.f oersons hvndicaroed bv physical or mental
'defect or by reason of a.se or o-ther infirmities. It can readily be seen
'that a minimum wage r-quirlen-t miih-t result ir the ?ischar-e of those em-
ployees rho by reason of such disabilities did not me,-ot the standard of
efficiency required. T.is '.-'.- soon recog- "7.d.

Bulletin ."o. 5, cont.aii s intcroretotln f t'ie President's 7.eemoloy-
ment Agreement, Interoretation 'o. "1, Para.,wrah 3, being as follows:

"PqrBns xo E.re lIuit3d i'n tL ir .-ar ,ir., uo,.7er through
physical 'or mental defects, '-e nr other infirmities may be
emolojed nn lijht duty belo'- thle mair:i:-.' 'a-e set by thie
President's Agreeier.t, ard 4rr lor,-."er iov.rs than are therein
authorized, if the e-rlo--er obtains from the Strtc. Labor
commission a certificate authorizing ths eflolo-.?rnt of such
detectives in such .nmanner.

As codes suoerseded thp PFA t-.e ou-stion was -reser.ted as to -7hat
q psqttion should be iade of authori7atilns to -1'rloy hanaicapoed wvrork-
ers issu:-ad to concerns '"..en they rere *uler P7ZA card nu.Ierous request for
advice -ere received fr-,m stat..e anuthoritie.s desigr'ated to issue these cer-
tificates. This cave rise to the issuance -f Txecutive Order Wo. 66G6-F.

II. Tyecutive Order :'-o. 6606-F

This Order -nas signed February 17, 1934, and recited that a question
had arisen or :iimlit thereafter arise as to whetherr the minimum -rage and
maximum hour provisions precluded those handicaroed by physical or mental
defect, age or other infirmity frrnm their former o-ooortunities if obtain-
ing employment. The Order provided in -:-,art as follows: (*)

"A person whose earn-n' ca-oacity is limited because
of age, physical cr nantal han-dicao, or other deformity,
may be emolcyed on light "-ork at a ,,"ae benlo, the mini-
mum established by a Code, if the en-olorer obtains from
the state authority desio-'Lated by the United States De-
nartment of Labor a certificate authorizing such -erson's

(*) Executive Order o. 66506-F Tx5hibit i'o. 24



9845




- 25 -


c -I o-'-'ent at such rvages mnC. for such hours as shall be
started in the certificate. Such authority shall be
rcii(eO' by the instructions of the United States Deoart-
-,.e..t oC Labor in issuing certificates to such oerons.
Lack en.'.loer shall file monthly r'ith the Code Authority
list -,f all such r-ersons e-inployed by hin, showing the
r'rcrs aid to, -"nd tile mnaxi!lum hours of V'orl- for, such
e i. -,. o-ce s. "

III. Procedure

Th'e A'.:inistration of the e::e-i-.tion relnting to handicanneO persons
-ere in the hands of the United States Denart-ent of Labor. On 'ove-ber
8, 1J-., tl'.bt Denart-ient issued. Instructions to gaide State Authorities
in thie issuance of Certificates to Handica-ped workerss; (*) etc., r'which
prescribed the method of p-roeedure in such cases substantially as follows:

(1) An application was required to be filed by the enplo.7er -ith
the authorized state agency, to contain information concerning the enployree,
such as his occupation, earnings and the wiges and schedule oronoseCL for
him as "ell as the minimum rage and naximun hours applicable to the saLne
o-ccvoation uider the code. Where the handicap nas other than age, a oc-
torts certificate, stating the exact. nature and degree of the disa.bility
was to be obtained and here the handicap res mental deficiency, a certi-
ficate r.as required from a psychiatrist or a neurologist. The certificc.te
was requireC, to be from a physician holCing public office. Wherever :os-
sible, the state authority ras to make an investigation at the place of
emplo -.ent.
(2) In determining whetherr an employee was to be classified as a
handicap ece. worker, it v'as necessary to distinguish between workers rith
infirn.iities -nd those whom the employer considered slow but who hlad no
specific handicap. It vas also necessary to distinguish workers rtho had
physical or -ental defects but whose earning porer was not impared "by
such Cefects,

The reduction in rages defended unon the extent of the hand.icam.
iWhen c code contained' no provision relating to handica-o)ed rworkers the
rase Pllowed .as describedd at not less than 75 per cent of the code :-iini-
maLn for ti-.t industry unless specifically ap-.roved. 'LTy the Depart'ieat of
Labor. iHo'-ever, a differential of as low as 10 -ocr cent was allor-ed. '-here
the hanC.ica-) warranted. such differential. Longer hours tlan those -re-
scribed. b- thie code for normal workers vas not oer-iitted, both because of
the tende.nc- to reduce the hour standards for all vrorkers and because
the hlindicapn-jed person, in general, r'as not physically able-to 'ore: lo-o'er
hours tnaa: a normal person.

(5) UJ-less specifically approved by the Labor Denartnenti -. certi-
ficate to "'ork for less than the ninirlua? vage was not ner-iitted to be
gra:.ted for -iore than 5 pTier cent of the working force in a given estab-
lishnent, e-ceot i-here a code specifically nernitted the enploy,.ient of a

(*) Instructions issued by Labor Department Exhibit Yo. 25


9845




- 27 -


larger .ercentage. However, one hendicap-'ed 'or'.:er r'as allowed in each
establis.zieut, no matter how small, rhen, in the judgment of the State
Aut-Lorit- issuing; certificates, the applic-tion ras justified by the facts
of the chose.

(4) .::ecntions to the rules of the United States De-oartnent of La-
bor that a -Lendicapned person may not be oaid less than 75 uer cent of
the liniui, or that not more than 5 per cent of the workers in an-c one
pla-.t should be so classified, v'as provided for in unusual cases of hard-
ship to tl-e orl-:ers uron the recommendation nf the State Authority.

(5) ii-ht watchmen were not ern''itte. to r'ork longer hours than
prescribed. by the- codee-.--If -hours -rere not limited bk.y.a code, a certi-
ficcte r.as issued nernitting employment for such hours as seemed to the
issuing officer to be jLstified.

(6) A oersonLreceiving vorkmen's comnensation on account of injury
could6- be e'n-jlo-ed at less than the miniijium on .liht vorkL until he '-.s
able to r'es-uwe his job -rovidod thie employer reported the -:articulars
of such light work to tiue State official desi.niPted to issue certificates
and to the State Suoervisor of Vocational Rehabilitation.

IV. Suo',in.rv of Adninistratiun b-r L.bor Depart.Ient

The Divisinn of Labor Standards, United StIctes Derrrtnent of L.bor,
issued a report covering Hand i capped Worl-ers. (*') For more detailed
stue.r this report will nirovo i!luninating. In general it may be stated
that the Labor De'artuient uas confronted with the necessity of promulgat-
ing a uniform Policy 'itli respect to the issuance of certificates to en-
ploy hanJicapoTjed workers. With te view of accomplishing uniformity of
local adziinistrrtion, the state issuing' officers net in Boston in
Sente-tiber, 1234, rwhichr meeting: was attenc'cc. by officers from the leading
industrial states. Anong; tie -,roblens considered ras that of fixing an
age of e-iplo.yees t',ic,. snoul.c be considered old for the purpose of the
Executive Order. It was Ceter-nined that disability from this cause varied
to such an extent in individual crises anC depended so much on the parti-
cular -'or'_ that no arbitrary ace limit could be fixed. Another question
was what percentage of the number of such workers should be allowed, a
concern as compared. to the total number nf employees. This -oercenta-e
as has been seen was limited to five ier cent.

A sumLTary of a.Tplicati-ins for certificates while not com')lete shov7
a total of 21,136. Formal arolications -ero granted and. certificates
issues. in 17,203 cases. Ak.I ic.ti-i.ns rere refused in 3,233 cases. Cei-
tificates 7ere issued in a.t least 261 different codes ?-id in 44 states
and the District of Columbia. The greatest number of exem-n-otions for
handiccapoed vor'ers u.v7s front the Cotton C-erient Code, there being 6,735
certificates issued from the minimum .age orovision of this code or mcre
than one third the total nu:iber of certificates issued. The next hih-
est number was in the Canning Industry with 1,653 certificates. 23 coc'.es
accounted for not less tnan 14,245 certificr".tes or approximately C4 oer

(*) Report of Labor Deoartnent on Haidicao-ied Torl-ers Exhibit 1'o. 26


9845




- 2E -


coit )f t:,. totpl issued. 276 certificates were revoked for violations
cf t:.e terms under which they r'ere issued and 591, cancelled for various
other reasons.

;asny cf the codes contained r.rovisions relating to handicapped
work.rs. A summarization of 475 codes crerared by the Research and Plan-
nin Di-.-iision of NRA (* short's 277 codes, 2 amendments and 9 suppolenentary
rodos containing provisions for exemptions of handicarred workers.

information oi thiis subject is also to be found in "Policy on -'C'os
telc'- t'e minimum" Work materials Io. 45.

(*) Re:,ort of Research and Planning Exhibit ro. 27




f1:


9845




- 29 -


G. HOME. 0FJF" S


I. Origin of Order
II. Executive Order No. 6711-A
III. Procedure under Order
IV. Summr'ry of Administrntion under Order


I. Origin of Order

A practice has n.,evailed among industrial concerns of offering
emnoloymrnt to )ersons "no for various reasons arp confined to their homes.
The type of work is of such nature that it is nc.t necessary to be -erfcrmed
in the factory but could be done in the homes. 'rhile this offers an on-
Dortunity for emDloyment to mnny inho would otherwise have no means of earn-
ing a livelihood the practice on the whole nis tended to create unfair com-
netitive conditions bec'.use it is difficult for tie competitor of the con-
cern emnloying homrueworckurs'to maintain fair standards of nours, i;ages and
working conditions for tneir employees w.ho work in the factories. Previous
to NRA some efforts nnd been m?..de to conLtr-l1' his practice ana reduce its
evils to a minimumm consi-jern-ble number of codes nrohibited homework.
These code -rovisionn, howeverr, brougnt forth n number of complaints from
individual v.orkers who u'ere confined to their homess bcruse of age, infirm-
ity or because trnfir services were n-edndto cnr.-., for an invalid.

In .9rcn 19.-2, a consult.-.tion ;,.%s n-.ld uetwern the Secretary of
Labor and the Ad.ninistr-,tor of the. .A wviicnr re-sulted in the setting Un of
a joint committee of NRA ana te DDc-nrument of Labor to study trie problem.
As a result of tne comnittre's activities r:n executive order wqs recommended
to the President wnich result-d in the issuance of executivee Ordcr NJo.
6711-A.

II. Exr.cutivn Order No. 671]-A

This Order was signed May 15, 133-. It recited that the question
had arisen or might thereafter arise as to v.netner the abolition of home-
work had precluded crt-Ain -'ersons ,.rio vpre incno-acitated for factory work
from tneir former oonortunity of obtainin- ,mr)loyment nnd unen provided
tnat no code in which homework is oroniuitcd theretofore or thereafter
approved should oe construed or a-'mlied ns to violate tmne regulations there-
inafter set forth.(*) These regulations provided in part as follows:

"i. A -person could tie nermitt;-d to engagei in home-
v ork at th- same r-.te nf wo,/ges naid for the
same type of work performed in the factory or
other regular olr.ce of business if a certificate
was obtained from the St- te authority
or other officer designsrted by tue United
States Denartment of Labr, such certificate
was to b-' granted in ",cco'd-mice with instruc-
tonsd issued by"t'ihe UUiited St'te -s-Dep-rtment
of Lat)or, Provided --------
(*) Executive Order 1o. 6711-A ExClibit ;,o. 28. '


9845




- 30 -


(a) Such person %,as onys.ically incan.citated
for work in n factory or c.ther regular
niace of business and wns free from any
contagious disease; .or

(b) Such person w.as unable to le'-ve nome
because 1is or ner services were ab-
solutely ess-ntial for attendance on
R person who w s bedridden or an in-
valid and bota such persons were free
from any contagious lis- se.

"2. ,ny employer engaging such a person should keeu
such certificate on file and file '.ith the Code
Authority for ti.e trade or industry or subrivi-
sion thereof concerned the name and address of
p.ch worker so cartificpued.

Tinis order sLiould ,ot a-pply to mr nffpct Codes
of F.-rir Comnetition therptofore or tnpreafter
approved for food or allies -roducts trades,
industries or suodiivisions thereof, wnich con-
tained provisions -orchibiting the manufacture
and/or processing of food products in homes."

III. Procedure under Order

Pursuant to the order, the U. G. Department of Labor on June 1,
1934, issued instructions relating tn the certificates,(*) in which it
was recited that the order an-ilied to codns arnrovcd or to be thereafter
approved, which contained a nrovisinn pronibiting iome work in the industry
or wart thereof, excepting the food or allied nrrducts industries, nd had
ni effect upon codes which did not contain such a prohibition, and furtner
provided substantially .qs follows:

(a) A joint wonlicatinn for the ct-rtificate was to be made by
the nome worker and the employer on a form furnished by the Demartment of
Labor, through the State agency, stating the reasons for the worker's con-
finement to nome, the rate of -ay per unit of work, the time required to
complete a unit, the number of units given out at one time, and the time
allowed for completion of the work. Tue worker was required tn certify
that he would personally perform the work, and the pm'oloyer was required
to certify tnat ne would na,/ th- same .iece-work rate iaid in the factory;
that all material, etc., would be furnished, delivered, and returned by
th' employer and at his expense, .nd that no d-ductions would be made for
snoilage or for imnerfect work.

(b) In edition to the re-sons giv-n in 1 (a) and (b) of the
order, the instructions authorized issuance of a certificate if the hnme
worker was accustomed to this metnod of work before ttiF code pronibitlon,
nnd was too old to make an adjustment to factory routine.
(w) "Instructions for Issuance of Certificntes P-rmitting Home Work in
Special Cases," etc., Exntibit No. 29. I


9845




- 31 -


(c) To mqint-.in the codp i. onioitions, the State Autnority was
to invest ate the aoT)lic-tion to determine if the exemption was justified,
and th- stF,nd'.-rds sot forLh were to be strictly' aonlied. The issuing
officer could require a medical certificate signed by a ruolic health
onysician as to nhysics.l incapacity, and no ablE-bodied -ecrson under fifty
was to be considered too old to make tue necessary adjustmentt to factory
work.

(d) The certificate could.be issued if justified, specifying
the amount of work given to the emoloyee during a specified D.eriod, not
to exceed that which could be comrnIeted during code ours.

(P) The certificate was to. he issued in quadruplicate, one copy
far tne worker, one for the employer., one for the code authority, and one
for Lhe file in the issuing office.

(f) More stringent State la-'s or regulations affecting nome-
work wviere not to be suncrseded by the provisions under wnich certificates
were issued.

(g) "o limitation of Thi number )f incapacitated workers to
each employee was -)rcvided, but caution vwas to be exorcised to prevent
fraud if numerous aunlicants vere received from qny one firm.

(h) -A certificate could be revoked if (1) the reason for granting
same ceased to ex,:ist; (k) the work vwas performed by a -erson other tnn
the employee named; (3) the employer g-,ve out work in violation of author-
ized conditions.

IV. Snurnmary cf Administrfition und?r Order

The Division of Laboi Standards. UnitX.tj.at.jtPs Department of
Labor, issued a r-.port cov-eri'rf'6"ikeipticns to nome-wvrorkers, reference to
which is made for more detailed study of this subject.(*)

A me'-ting of the stnte is.iuing officers was held in Boston,
Massachusetts, in Sentember 1934, to discuss the problems wnich arise in
connection with the administration of exemptions to horr.e-v'ork prohibitions.
Among the problems conside-red were cases of mothers confined to their home
by the core of young cnil,.-'.ren, nomeworkcrs vno wnile not inca-onitated for
factory work, lived at -oronibitive distances from factories. It was de-
cided that the Executive Order should not n-.ply in such cases and that
certificates should not therefore be issued.

Reports were received from the State issuing officers on the ac-
tion taken on anolications for c-rtificat-s. ;thile not absolutely complete,
figures have been assembled b-scd on those records. They show the follow-
ing:

Formal ncti-n was taken on 5,C65 aon-olicat ions. Of this number
2,608 certificates were issued and certificat-s -eore refused in 2,457 cases.

(*) Report of Denartment of Labor on Homcwdrkers, Exilibit No. 30.


9845




- 32 -


The number of cprtificrt:s issued is insignificant ns comnoared te the
total number of homeworkers formerly a.tacned to tiese industries. Ap-
nlicaLi)ns 3 -.ro gr'-inted in 23 States; novevcr the number issued did not
reach substantial "ro-ortions *-xci)t in a few states.

ne following table snovws tte mbpr of a-:olic-.tions
,ranted .nd rfusea for the ten industries in whicr 100 or more certif-
icates wore issue'.


Industry

Men s Neckwonr ...................
M-Irciant and custom tailoring ....
Infants' and children's wenr.....
Artificial flovpr qnd fenther....
'ndergqrment and Negligee ........
Men's garLor3, suspenders, etc...
Pleating, stitching, and bannaz
and nand embroidery..............
Toy and nl Vty ing ................
Tag. . . ........................ .
Cotton garment ...................


Number of certifi-
cates issued
8C7
220
192
160
153
111

126
121
118
116


umber of aDolica-
tions refused
523
73
131
151
219
141

447
150
43
100


4. See -agc 7 of -cport, Exniuit 17o. 30.

The greatest number of aonlications were from concerns located in the
State of New York, being 5,065 apnolicrtions, of which 2,608 were granted
and 2,4b7 rojccted. Next in rrder wns that of P-nnsylvania, with 391
ao*lic-tions, 247 of which were granted and 141 rejected. Tnen followed
California with 270 applications, of vhich 220 vwere granted and 50 re-
jected.(*)

B. Information on this subject is also to be found in "Policy
on Wages below the Minimum", Work Materials 1n. 45.


(S) For further information rn this subject s e f"I.R.A. and Industrial
homeworkk" by 0. W. Rosenzweig N.?F.A. Labor Studics.


9845





- 33 -


H. APPBEITIC2 TRAINING

I. N: tu.ro of Ap)renticc Training
II. Origin of Order
III. E-:ccutive OrL'er 6750-C
IV. Orn ni zr.tion
V. Al. :inistr,- tion
VI. Conclusion

I. Nature of Aiprentice Trrining

The tern ",ounrentice" is defined as "one -,ho is bound by indenture
or by legC/ agreement to serve another personn for certain time iith a
vie,: to learn an art or trade in consideration of instruction therein
and formerly usually of nrintenrnce b, the mrastcr." I

IWhil3 the ,bove is no doubt -an ancient definition, it is still
generally saorking ar- -daqu-.te tern for .resent day uage.

Thus, the distinction bet-eon "e%,rmitice" rnd "le,-rner" or
"beginner" becomes y-l'nifo-et, the fornior usuall:r -oelicc to the youth
and the training; is Puidr ,jentrlly cn education ,roccss, rhich the eim-
'loyer is obli-tedi to norfornri by the tz-rNis of the rrentice agree-
ment. 2/

"UnC.er y-roentice traini i; young men .nd -,o!.en ar.re
given bro'-d -n- couprehc'nsivo trn.ini-,"- i.: i.ll branches
of skillod occunr-,tions.

"It i7, of ri.-.'r- i-)o't:1.'c1 t.i- t every-one under-
stand t.hi'-t r, '. r.-it ice trr inii, i- fnu.nupwntl.;y an edu-
cationrl rocesu. It is first rnn' foremost training for
.. vocation. This ro.,r.;i c;-:iut r should not Lie re-
gnarQed ,merely *-,s .r- -rm-ns for farnishinc em ,lormneat to
young .'Iersons.

"An. )rentice trainin; stan'.s out in shrp[ contr-st
to th.3 eTn-loyr.ent of helper., to the trrc..e schoci course
in rhich the student receives ao e'.:)rience in work under
normal rcr-l conct.iti ..s, -rnd to the nirnute snecinlization
of oper' tors." 3/

II. Origin of Order

The need for. special training in tr-des "nd industries has long
been recolnized. In l al'i, a Federal Do;.u.r- for Vocational Education Unas
established by .an pact of Con.-ress. Subse.Tj.ently this --ork was placed


iJ .7ebsterls I.e- Inttorn; t.i- .1d Diction-r r

2/ Form of ,p-PreAtice a-roement issued by Federal Comnaittee on Appren-
tice Trnining, E:!.ibit iTo. 31.

3/ Bulleti.i No. 1, pr..oe 2 of Federal Cornlittee on Ap-orentice Training -
Exhibit :To. 32.
9845




- 341 -


under the ffic& o:' Ed'.c-,'tio"., Interior De ),rtlent rnlL r no'-: division
of ti:-'t ow.'ico crornted nr.-:eod tn. Division of Vocrtional Trnining. Ho-o-
ever, durin"-i thm d -erossion the trsininr- of ne,' -orkLurs fell to a D)int
-rherc it ... z r-ctic."lly noCli;ible. "Skilled hel -7s 7 bundant and
cmloy1rer. fyo,.fnd reduction. of costs irroerr-tivc; training .)rogrpns inpugen
ated d-arii. oros-nerouz tinmcs '-ere 1r.r.cl' Pbr-ndonoe." 4/

Althouw. th.o iI:'tioi-al Indu':trial Recovery Act ',as a.)proved June 16.,
1933, no ,en.-rpl )rcvijio m -,.s :..-dc for .a-,Lnrontice trai.ing nnd no actio
rr-,s tae'.-n wntil Febr-'. ry 1, 1'C34, i-hen Hr. Leon H3nderson, Director,
escsrrc- 2-n'i P1-:'.in,-; Division, a ,',oiitc. r, committee to investigate
t,.is -"roblem rnd m.ad.e reco;mfoe:n.dtions.

I';eanwhilo, mn.ny codes haId been a)i)roved, n-ost of- which failed to
include : any provision for -') 'rentice training -nd the fen codes th.t
hpd such rovisions -ere enor.-ll;. in,.cLeqA.trte for systeman.tic training.
On the othrr hinn th- codes "ore blocl:in"- prenticee rgreenents since
'.r:jes under co....es -c--c higher thun thrt usun.lly o.aid api.)rentices vt the
beginning of their tr,-ininr 'criod. 5j

The menb-o shii- of the Committee r'-,ointed by Hr. }Henderson, con-
sistedc of si::teen Putn.orities on tne orobie;i, r:nr'sontin' the 7, 4,De-
sprtmnent of L-b'or, the Off'ic, of Z'ia-crtioi, om-lo-,r's, organized lrbor
and Stbte De)rrt'ients of Educ-.tion. The Cor.iittee '"-as corrp)ose'of the
follo-,in.. cr.-onnel: 6_/


Dr. A. J. iltemerer,
Chief, Lc-or 3rranch,
Corlli-nc3 Division

J-irs. CI.r?'- i,. -.e"e-r,
Director, Industrial Division
Cr-ilureno s .tus-. ui
De artmer.t of Lroor

i.r. 7. A. Clvin, Ass 1t. to
S-.c'y.-Tre.-s., John P. Fre'-,
M'etel tr,-des Dc-o-.-rtmnent,
Amecrican Fecim-a t ion of L-',bor.

1ir. Frr'n': C.us'h.L, ,
Chief, In0iztri.rl duc-ticn Service
07."ic.. o c- crt- -on

Mr. J. 17. Diet-',
Supt. cf Pu.,lic R.'l1-tions,
.,cstern 1-_octric Com)rn:r.


Dr. C.rl Ruasbenbush,
Technical Adviser,
L-.bo--' A.visory :3oa.:'d IlRA

;1r. Str.nley I. Posner
Economic Advisor,
Re..enrch 0-nd Planning
Division 1IRA

iHr. ,iter i'. Simon,
Supervisor o: A-)rentices.ip]
In,'&ustrirl Coniission of
Wisconsin

Dr. Willian H. Stead,
Associate Director
U. S. ':-.,lo-.ent Service

Hr. F. J. Trinder,
Snco-Lo--ell Textile iWrchine
Co! an-.ny


4/ P-e I of >-.hi'bit :To. 32

5J P,-ce 1 .::cerpt front Le -ort of Julv 5, 1935 by.r Ferleri'nl Cnmmittee
on Ay-r-ti.ce Trr iinir.g Z:hihit ;o. 33

6J Personnel of the Co-riittee )r-..-e 2 of report c.n A)-rontice Trn.inii
Prorran_ un'.er ",-'A. :dhi"bit' .o. 3"-A.
9845 1





- 35 -


Mr. C. R. Dooloy, F.n:,-er, Di'. J. C. Right,
Ini.ustriil Rcl -) ins, Assist. U. S, Commissioner for
Secony-Vacuum Oil Coifo, nn Vocati..nrl Dducr.tion

M.rs. Betty Hav.ley, Ex., Sect., I-r. Guy G. Via,
Advisory ";onrd on Indust:.'ial Educa.tion, Ile-,port ioe'-s ShipbuilCling
.o0 d of ..ducrtio-i, 4er. York City Coirman:.

Mr. John J. Seidcl, Dir..ctor,
Voc-.tional Eeuc-' ti,,i for rrl].nc.,
.'r. Seidel '!as Execttive Secrotr-.r-r of
the Co:.iritteo-.

The studyr of0' th.e. Co!.m.ittee sno'-scL:

"1. Thpt thc. terms 'Leginner', 'Ilear-iir' ?-,i
'anorentice' hadJ .,eon used interchangeally in the codes.

"2. Tht nest so-c.-l.ed 'aoyxrentice provisionss '
-rere for short ore,.':in: in' -,eriod. of front one to
nine months.

"3. Thrt o:ily 4.3 per c o--t cC the' coC.es contained
provisions for genuine n- )rentice tr. i;iin,." 7J


III. Executive Or.:er '750-0

As a. result of- this inv,-.cti .tion r.'i. the recom.irndn.tion of the
Committee th. Pr'sidic.it on Juno 27, 1924, isiue&' Z::ecutive Order 7To.
6750-0.

This OrCer ,rovidoc'. t no :rovisio., in -ny Code or agreement nhich
had theretofore been or '-Yoril. thoror.frcr .e r : )roved sho-.-ld be so construed
or a;.) lie2. as to viol,"te t.c- r-.iles rd. re alptiorIn- t.erein rfter Dronul-
gated. These ru.es in subst-rnce -'ere:

1. A personn ---s Qormittsd to jbe enn--loyed -s an
F-f )rentice :rt loss thr- the niinitrnua -'.:,e or in excess
of max:imumri' hours of labor if -, member of ni indLustry
should. obtain fro:, an A';ency e..-trbliuhed b- the Secre-
tary of Lrbor c,:-rtificte -.cr;iittu such einloyrnent
in conformity '.:it'.- a tr: inin'-r rror.--i offered by such
A-.:ency, sucl cni-loynicnt to con.iti.nue until the certifi-
cate shoul'l be revoked.




7/ Pa,_e 2 Excerpt of eo-,ort of July J, 1935 3:iibit No. 33.
See '-iso suairTarizption of i. .-::ntices nd' lqnd rne" provisions
in codes b, i.esearch rnid. Planning, 11-:hibit No. 33-B and 33-0.


9845




- 3G -


If


2' The t c rn "-"mr notice" should ne"- -. person of
t 1i: "t 16 y': r.3 or r .o -'d entered into ., writtenn
conto-cK "-ith t.- e:--i-.l'-rw or -n rs.socin.tion of m-Tloywcrrs
r,-.ich l..rovideo for ,'t lo -it 2C'J hours of r'e2.son:blr con-
tinu.i. ,-. loziont -id :.is .:r'tici 'iti-: in -n r -)roved
nroa rr tr- i.-ii s t 'Doi ci .i'cvi(ec'L.

3. A Co',it-oc soul. be e Arilislied b- the Sccro-
tar' of L'..aor to -dviso the Secret ;-y in the exorcise of
th.e )o-.C. therein cwifrr'-C. r 'n :, to oerforri sc'chi other
functions --s the. Secrct:-'r..' *.iht dire ct. :his Committee
should .,- co:i)osea of one or -ior"- rL'or" -cnt.-tives of the
Office of Educr.tt'..n, th',.? ti.n.! Rocov ry Aiuinistrr.-
ti. -n ?nd th. United St:-tcs De rrtment of Lrbor.

The Ord2r f-urther .-ithorizeo. the Sccrct.rr1 oa Lb-.or to -orescribe
furth-.r rule.3 rj- reL-dl."rtion:',. -nC take such otier .te.,s rs he 'light
deem necesspr- to ef:'ectu-.te tnh. O0-.er. Or.-Cor's <-))rovin,; codes or agree-
ments incD.isistent "ith this Or..er "e:.'. io.lifiead occordi.igly, )-rovided
tie em)lo"--.r elected to b,-co:ic .'.:j'ct to the Or .or. The OrC.er becane
_:ff'3ctive July 15, 1934. 8/


IV. Orft:-i i z.tL ion

Purs'.v ;,t t.-i the- authority c,.-.ferred 'y the Z::e-cutive OrL'er, the
Secret-.ry of labor a. *ointc:. the 7ollo'-'inl menb.'rs to coaisitute the
Federal. Coi.-u'iitteo on A'.jrantice Traininc:

Mrs. C1.r' "'. 3eyor, Chairmrjn, Assistrn,--jit Director, Division
of Lrbor Stazndrrds, U. S. ec'ar'tmacnt o L.bJor, rep-)resentinc
the De)-rtment of Lahor.
Alternate Dr. WTilliam :'. Ste-d, As':oci.'tc Director, U. S.
Em.-lo 'ient Service.

Fr. Fr-:il. Cushm'-n, Chief of Inmtustrin.. :cxic tion Service,
Division rf Voc-tio: .l Zduc-tio:., Office of &.6ucr-'.tioA, repre-
senti'.' the Of 'ice of Ldc'tion.
Altcrn- to '..r. .. V. T il i:\;tn, j-pn:'t, Intiustrirl Zducn-r
tion S.-rvice, Divisioi Voc-.tio-irl 2ucrtioa, 0-":ice of
-'.Iac ti 2.

,:r. St"nley- I. Posner, Rese-rch ,n.& ?leauin,; Division,
?.tio r..i-l RecovrDj- Adjiinistr-ti,.,:i rc'nret-ntin; the National
_Lecov"g"r --vAiclnistr tifn.
idtcr.nrx to Dr. Hri-, r-eiss, Assist-it to t"-' -;,ecutive
Se3: :_ t-r', J. tic'.-al 2Iecov:,-r., A -liinistrr tioez. .

On -u.jast 14, 1954, uLrsua.nt to thu :-athoriz:rtion cont-ined in the
E-:ecutive O" er, the- Secretp.r-- o' lab,,o- issuo& "C-enr.'-! 1e:-alition iTo. I"


a/ Executivc Or er 'io..?3O-C Ztiibit To. 3$-D

9J p-- r o' the kx)renticu Trrininig Pro:rr i 1niler thie iqA h.chibit
No. 3- .


9945


II





- 37-


prescribing further rules and re.rt'Ltions for the carr-,in; out of the
po.-rontice trainiin.. -romramn, l0/ This Ad iinistra.tive Order directed
thic. CoT.-Jnittc.e to )re,,'.r'? end recommend to the Secretor, ba,,sic sta-ndnrds
for use in the tr'.ining jromrnn. Stch st..ndanJs rieht be varied accord-
inE to the occupr.tion bat the troinin.g "e'iod cho'l.2. not be loss than
2000 hours nor more thnn 10,000 hours of rer,-isonble continuity. I'Tot
ljs,: t1:,.n 144 hours -icr z-er should be devote to ,:rotm. instructions
in :enrr."l ,nd technical subject' un(-..er thon direction )f -)iublic author-
; cities but the conbinee hours of -ork ,nd instiruction should not exceed
44 hours )er i eok. The bejinnin; -'..:c ut not ube less thpn l 5% of the
Sbasic r-te i'or journjyrmon )revrilin,: in the- occu.): tion nnd. locality.and
the -Tne Dust ,ie incremasd periodic lly darin' the life of tha contract,
the river e re for the entire a ',rcntice trn.ini.-, -.eriod b.in,- not
less thsa 50 )or cent o:" thu b: sic ''.-'e ir-.te. The Cor.-nitteE vms rlo
directed to revie-- the .-ctivities of all strt-c : .encies and re Jort to
the Secretary u.-hetlier any suca L,-;e.cr snoul'. or: designated. The Committee
sho':-lC a2so recomimiend to the Scretary such Other regional, loc-1, general
or special agencies ,3n r..ii;ht ";oe necessary to supervise the trvinin.T of
a-o irentices. The Co-aitt.ee Ohoul.L traIsniut to th.j Secr-et .ry nominations
for meribershio in any such-'. .'ci- ]... b (I) :.2.A, ; (2') U. S. Er)loy-
ment Service or e.=,lo-,lnt ,'ervicc L.- t.a. Stnto ,-'iero s'.ich a.,enc'r ,-a.S
created; (3) Strte Boar,. of' Ve'-,-ticn a. Tr".i--.in._; (4) St...to Labor De-)art-
ment; (5) Or..aanization. o'f En lo yes in the ),rrticulc-r state; -nd (6)
Organization ol Em-iloyer.- i..: the )r'ticllt srte. lver- such agency
should (1) .do(o-)t :s teo :er.iount -jicIin :.rijncnjle the edbicr.tion rnd
training of aniwerftices; (2) .ado b.- ic s.t-'nd..r. -t lest equal to
those )irscribcd a- th;c territory; (3-) ac a'..tnori-wcd to issue certifi-
cates 'eriiittin." ei .,l o ment o r- -rentic;.:; (4) ir,-Pre rjid ex:ecute a.
general l-in for- sue-visio.i o" pi rntice tr-.niig .ich should include
the a.-))raisiir ;'.-d -.? )rovin o c eecif-.'ic -.ro;:ra.is, a m.rovin.-" contracts
o,' a.orenticeshi re.4 isterin a'nren ti;e-, sZ)uervising the training,
cancelling contr-.ccs issiiin di-Jloim.s.

Pursi.unt to tie n'Jove :..T..i:'.iStr-tive O0r..or the '-Tor: of organizing
the strte co.n.]ittee -,"s be -mni. A series of re'ionial meetin,:s conducted
by 1.Ir. William ", ?Patterson, :x:-cutive Secret.rr of the Co,.nittee on
jtorentice T'aininj, .. s bew.i Au,'ust 23, 1924, an.', continued until
October 9, 1934. As a res-.ul'. o' th -' i ectn.: Stn.te C,',o-i iittees -,ere
organized .n.. their a ointiliot.; officially mude '- the Secretp.r', o-' Labor.

The Fede,'-rl Cor;..ittee on Aapprcntice Training sent out to the Str.te
ComAittees '-ritten ii-.tructioes relen-ised -nder cLdte of October 20, 1934,
relating to the or-ani-ation of the St-te Committees 'nd of Trade Advis-
ory Co:aittee-> :-.-td s-ecifin: the functions of both and also standards
in the a.dinistr-tion of the a !)'rentice trainin,-l program by the State
Committee. IL_ Generally these instr-uction's follow Instructions lio. I,
issued b-- the Secret-riy o.' L.-bo"r .)rrvinuslr, refL :r :C to. The instruc-
tions issued by the Con .ittee. .T7ere, ho-.:evcr, mo:-e olebor-te and specific.
The State Couiittees, bi,-i,; ,.;enciez set ua )ursurmnt to the authorization
contained in Instr.tctions 110o I, the Instr'-.cti.ons from the Federal2


I_/ General Ite.-ul.rti: iTo. 1 exhibitt Jo. 3.-S.

ij/ Instructions issucL" b federal l Committee see ).ge 4 to 8, inclu-
sive, of -.e)ort o." Co-mittce Exhibit "o, 33-A.
9845





- 3e -


Cc:.;initt- ,4. Ll tin- to r.'-irescnt tion of groups ;n. t-flcis o50 the Strte
Committees follo'-ed ti. rei uirr,:,'.iL,,S th.' IndICt ucti ns fro; thie Soc:'o-
tpr, o: L be'-', c:c-crit th.'at '.h Co' littecs Indjtructions -'ore s )cifi-
cry ujsi:"-tC.. iL'$U St t. Co'iii'-nco Division, inzterd of LA -nd the
t.te ic 'Ati -n o' Lo.fVor in.;t.,n, o:f -rn or(.-:izrtic-i of enilooyces in
ths .-:rtic.Jrr" St-'tec. The other jodie'o rerce:, .. .. d--;i' the snme rs
in th.i Instructions fro the Secretrr-, i.o., St.r te Dc.'r-'tnont of Lr-bor,
St-te 1oP:.' for Vocr.tion.-l Euuc'tion, Thplo:,y'rnt SLi-rVicc p16. n Orr:-niza-
tion ol' En 'loyers. The functions o0' th. St tr. Committee -'ere to super-
visc the trv'i.-in o ; .'-.rentices in -cco -ice -'it"- the stnjc.rc r ,' proved
b-,, te Secr. t.-r o Lv'.ior -'Aich, inclu.le,.'. ; ,-.rovrl of .- iprenticc contracts
issuin ; c,-rtificc.teL-, re -istorini .)-)rentice-., su)orvisin.- tl'e trn.i ing
of r -rcnticcs, cooper- tin,- 'it.i educCti.uial raLt'.oritics in the school
)ro--ri,c&ncelling contracts r ". i.suin c'.i )Jc mas. The instructions .Iso
'uri;d but LdiLL nt rec.irt the est-'llislinent of -r de Advisor-y Connittee
for c-ch trrce to b- co,' osed of' e-resen; t iva-s o-' c., lo]-eos r-id en-loyeru
Such Conilittoes ou' 'ct in "'n r',visoi-r c-) citr oni such natters rs the
dceter-i.laat L. -i o' a uniform i contr-ct forn-, the )r-v.ili- rverr -;e rate for
journe. nen, coo )c.'rati 1,L -it'i racnocl r .dtho-,iti .s, t'"e- selection of r v-ren-
tices, nrttc rs o-' 'riovonce either of the -rc-'rentice or the c' lorer c-r.'..
oth.r mrt trs.

Bu :;:- 1:3, I 35, fnrth-thirce st.rt coi._itte-ns r.. forty-one AIrns
had been ,- -,revel. by the Secret-rr, of Lrbor. Th'i -round uork o-e the
orgr iiizetions, 'rjis 'nd policiess ,ns coi let d.

The feaer: 1 Con;ittee on A. rentice :rrinii cid' not ceaso to functi
ueon tho inve.lidrtion 'of the il-tion-l Industrial Rccov.r-T ,.ct. Executive
Order ,375,>-C, c s "ell ins the v :encius crei.teC:. tiereunder, ,-'ere extended
b, Exeuctive Ordor 7073, issuA- June 1.5, 1935. Srnction ins further given
this Colittee by Executive Order No. 7086, cretini; the Iirtio-uaJ Youth
Administr-ti ,) one of the objectives o- rhicch "'- the en>lonent tnd ap-
prentice trrininc: of tnc youths of the na.tion. Li The l.ationJ. Youth
Adi.i:Ustr ti:n h's dLcsign.-te, the Comiittee ns the ?cency for crrrying
on the a.))rentice 'hpse o.' it.s )ror'rr rnd c. re j:-eosent.- tion: of the htion
Youth OrJn.zizatign hrs been -,.pointed to the I'e,...'l Coiriittce, In Dece
b..:r, 1935, this Cozuiittoe consisteL. of th'- follo'in: )crsonnel: i3


Irs. Clar- i'. Dejcr, (Chairm.an)
Assistant Director, Division of Lnoor Stnda.rds,
J. S. Dec-;'.rt;.ient of Lrbor,
Alteranrte Dr. Willing H. Stera-'., Associ-te Director,
TJ. S. :--)loymenont Service.

Dr. Frin': Cushra-.mi, Chief of Industrirl Zd'd4c.-tion
Service, Division Vocntion Educ-tionl, Office of Educrtion,
A7 ternav.tc !::'. 2. V. Gillin ;to-i, Aent, Industripl
Educ-ti 'n Service, Division Voc.-tionrl ducptio'i,
0::'ic- o" Zducntio. ______________________

Pr/ -e 1, ,iulletin io. 2 of ?"e'e-.er-l Co.r-iittec on A-)orentico
Trai'ning E-hilhit 33J-F

13/ Fa.: 4, 3-.-llrctin lNo. 2 of Federal Co'u.ittce on A)'rentice Traiining-
Zxhibit 35-'r.


9845


I1





- 39 -


Mr. C. R. Dooley, I:an;;oer of Industrirl ?Rl- tions,
SecoyV-Vrcum.i Oil Coiipjnr, Inc.

Mr. John P. r,"y, Pro'irtcnt o" th, I;t?.l Trr.d_-s
De.r.rtneit, Am.eric,-n e'.eor.ti -n oa L;- bor.

Fr. !V;.ry H'. S. M.Inres, Director of Guid-Ince. PLnd
Pincencnt, i' ti nal Youth ACdninistr-tic' .

Dr. L. C. Miarshcll, Dir-ctor, Division of' 2cvie,
:';..'., ltrn-'te Dr. H1rrry Weiss, Chi .f,
Co.Lc Authority Adniinisto".ti'-,n unit, -''A.

i:r. Tilli-:ji 2, Prt.tcrson, Z.-ecuLtivL' Secret'rr.

VI. A&LiList r-tion

Tiile the or;hri.iz:tion b-d. "en lrr%^.l'. coaileate'- the r.ctual number
of aprenticeshi', contrrctu effecbt-c. '-t t:e ti -L Of invalicdation of codas
,-!s not ;rcv-t. I ro'-,ort o" coitr -cts cl'.-sv:iie& >.7 tird.r' :-nd industries
aE. br st-tes is coitrin,,L i.. th, Cc'::nit tees 2e 'ort. (Exhibit lI. 33-A)
This re )ort shio'-s tlrt o-i Jiule 16, 1935, the nriuinbior of a i rentices un-der
contract *r s 353; nub:ujr of em)loyoec.s 14-13; n-.l-ctr of occupa.ticnu 62.
The occupation xs containing the lar.. st ::nuLor of" t-?.:rentices 'ere thi-t of
Plumber, in 'h.ich thcr. -ere 62 c )-renticcs; ]Jchiinist, contr.inin- 52;
Fibre W.eaver 42 ,.ni. T .ol U:ur" oC. Thie stn-tcs cont-inin the Ipl-'-est
number of e ireiticcs in the or[e r n:"ie:. C'"ic Wisconsin, 220; Te::Gs, 50
and i.iichi jin, 44.


VI. Conclusion

The method, of su,-,.'viSio 1-, '-- tie .'-r.l Govgrn.mrnent of -Tn entice
trpinin-;s differs in s':vorrl res-scct, i'r-._,, thr.t c -)loycd. in the rei-ula.-
tion of7 industry thron.,.jth the 'MRA. lie follo-in: iill be noted:

1. i2.a functioned Lurel1- r s r f-'le-^.l r- enc',,. The 8.i )ren-
tice training 'ro; 'rm-, ho'ev,2r, -nrocee,. dl lore nc-rly uv-on strte lines.
The activee rd.ninistr tion o o.r-) )rcnticr t:"-i i., i, b-' the Stete Coiv-
nittee sub.jject to thn General Su':ervisicn of t'.>. Fec'e-al Com:iittee. An
a. Ificer of" C.h- St:-tej Governr.ient (' re-i'..snt!tive of the St."rte Lebor
Denrtmnnt) is P. main-merl of the Strt.c Cajii ittec. The Stt-.'.e o.' Wisconsin
h.s its o,'i -.,,-rc tico trri'i -- which h is ,d iinistcrea bl ,,- Str-te
Corrijision.. In kenlii'-. "i.t: tA.is situ-rtio-., the FeLerrl Comiuittee si:.ly
desisrt-n-tr *... t--is s:.o enc-', tI- St'-= i Co'i ittee. In frect, the rd-
ministr ti : o:' 0-du''rl Twrifinn }.:- proccedc.C' .)on the ider. of a coo-.)-
errtive ove'n it tc st 'cs rather tha.n u.,i the rssuiition of
exclusive" juris,.ict i-., irn the -ern 1 G}over i.n-it.

2. Th- A.inistr: ti,:i c- Xntio-irl Industrinl R-cover:,, Act
7r-s centralize'. 1rr;::l-1 in '7.-'hitnL toei, D. C.; the Ad-iiiistratioh of
ai-xren.tice tr.-.oinn -",rs localized. in the r-rfe-s o:' o.erution. This is
closely rol- te to tIn.? ,r.vi-,.As obse:'vr-.tion. Io-icver, the first refers


9845





- 40 -


to uesti ,ns of c nflict of CL'1i"- rnC. St-to Soverei ;nties -herea.s this
su '-csts t.ih rel. tiv.e '.i 'f,-renc,:s in centrrizo *.. doc.entrrlized
authority. 0O course, even the prenticee trr- i.-: ,,ro.-rm- rs not en-
tircl- clcentrrliz-.,c rs ,cnerr s'-io- revision "-s reserved in the Com-
..I it tec.

3. In tn.- ;,'oiinistr tic' o.-' r ,rcntice tr- ini their hr.s
been c i:siker-biy less o--er ,,.. i-ifluence b-'r ind.str-, thli;-n under ?Tl.

One -"' tie )ri:ie )ri.icioles o0' I4LA -' s sel '-government of indus-
try; hcnce, orn:,nizntion byr the individual industries ro.-;rCless 0o' local-
it,,r -n.i the election o7' code r-uthorities. Th-iile final l action in ost
:i"'tcr t ; reserve., ii il-LL, acttut-lly t.,e rocoiniendrtion of the code
authorities -,rvr,.ile unl..ss3 such recoriien.-.tio.:s contrnvtnod someP basic
policy. For c::r..i'lc, in or .:C r'-:tin or den'in- e':c.r)t:.G s the
recomji.endu.ti-ms of t'e code authorities *rie folio--eL in -.robrblv not
les;- than ninet;r (91) ei- cent o' such orders. L4J In,'.ustr-. is qiso re-
presente.. in thc' rj.inistrnti,-n of c-- enticeie tr'iniin,, but no to the
sL-ne e;:LC.t. On thj: ?ee"au l Con.'iitteo thtr. is ,on.e renresent-,tive of
induetr-, four rc.rs-entrtive:, of -...-C-Ici.-n' of the Fe.'rr-.l GovernuLient
*nd one of orL:'nized 1--bor. Pro-.ortionP.to re *rxee:.it tion on the Sta.te
Co'-rrittee is about the 3rne, the--r: bein,- thr.e ryjresentrtives of the
Irtional Government, on- of the St te La1bor Do -rtnont, one of organized
Ip.bor Pnd. one of industr-y,. I't '-ill further be noted that the re-]resen-
t tion of industry ,ndi lbor in equrl. As result of the r.bove set-ur,,
thrrc is 123ss -'o-,er in ny -p-i.rticul-r interest or clPss -.:id stronger
2overnmentpl control.

Ho-ever, it should be reco-nize.d th.rt the organization and -.dmin-
istr.-ti n of the :'eder!l A-o--ronrtice Trair.inrl iroC;r".:r is not in all res-
ct s conT'-rrble to th? "ork *-.erforncdi Tr I-TA. The former dels -'ith
a single :--roblemr, thic l.-tter --ith a vnst ;-nd con Ilex variety of oroblons.
Nevertheless, it is believed stud.'. of sxo;ie of the fentu-res above re-
ferre?, to n.a -'el1 rs a, study if the P,-;iinistr-t-on of e:emnrptions to
hoiie--orler n. handice)ne'i '-*ork]e.' nayr (cvel.o-) v:-lun.;)lc su.';"estions in
the ~)re-)r-rtion o." my, future federal le'islrtio2 to regulate industry,
sl.o.uld such future legislation oe crnsin..err.t. 14/.|

There is still on ainost liiitless field for th,_ tr,-.ininc of enplo"e
in industrial occu-pntions. A l-rrge )ercentr -e of e::ernotions -ere brsed
union th. ground thrt Rl.:illed -crkers -e-o' not rvailablo, es-eccinlly ex-
e-ritions to 'orriit e i.loyees to r'ork in e-:cess oP- th- :r.-iium houCrs. x-|
e t-.tions fro-- naxinuv.i hour -jrovisionr constitute- more then 50 'er cent
of the total cxerntions. 15/ The. fret thpt c'rloyers generally rere


14/ All e:xe.j.tions '-er- reviewed by the Revie Division Severn-I of
the "-riter3 of this History -7erc. in the Lxe:ntion Unit.

14a/ See also "St.te Recovery Le..islvtion in Ai c, o. -.crrl Recovery
Le :islrtion" Leo:-]. StuLdies.

15/ For -authorit-, for the r-bove st.rte-,ents, seo ..otc 14. This Unit
has .-lso oo;-riled .digest of OrL'.,rs ,-r-it;ia a.i denyring- e::ei.r--
tions cl-ssified b Grounds.


9845


U


EL
EJ




- 41 -


"illinj to ,.y more thir-n the normal rr-to oi' :.rr for overtime '-',ould
inlic-,"t t!- sinc. rity of their st.[tenents in this res-.iect r.nd th; t
it '-3s not in f ct .'rofit:',lc to hir. ta.- u"ne:.i ,loved Irbor that -,.s
a.vaila.blc, The situation c:istucL in innerir- .)lIe instances '-here in
community in 'ihich thevm- rs l.r :e rnera 'lo-oent tire 77-s also acute
short-;of o v..ilcble slillea Ir.oor. This could oc l,-.'cel a.llevia.ted
.r' the extensive )ro;rr i of :.)reaitice tra- ini.i

Inform-. tion on this subject iu nIso to '.o foimd in "Policy on
7 U7 :es below the Lia:imlwll" ork !'tk.ri Is i,. 45.


9845





- 42 -


I. S-:CL-L:RED WT-.X:YHOS

i. "ri-in L Exoempti.n
II. j'Jini -: t tiv c OrdLc.rc
III. C ncluci n


I. :ri in f Fx:r.vti '.n

S... iTcered '" rt::. '. ,'.t':.,' c...rit:.'Ile i:-nti t'.iti ... *"...i.:. pr videe cn-
pl -^,-,".c:-.t t :'a.clic.z1-: ,cr: ns. .-:.'nzlica'- e, -ers A-z ar' th'.:se unable
S ccc .r c or.- 1 ; .Tent i : .Zi .c1: "cr.c-v.ic c'.y c l, mental )r thier
di::.bilitiez. 7.c:'c are .C tcc'..re ."m".. reqd t ,C.. iT.stituti Ins i 1
tLc U.iited States. It *.,ac z n -c--li-ed t.i't t'.erc ipiztitutimns c 'Uld
n 't : :.c .- --l* : rny -, t.-c c ''2 visi ns. 3n taoe tier hand t.iere
'.,a: 2 nsidc_-r'tic b-jec'i ,i fr -1 i. ustr because .f I' e c:mpetitin
fr im -ac". in ti tut i ns .

'I. r?:br-mnr:y 1', 1234, ,- cr.4isi- n va: ar'-in-ted by :-Hu;h S. Jinm-
i.jn, t:.c nminiztrtr-.6r f .-A, :'"- tic p-a-) se .f inivesti, abin:. tihe
.r ic':. i tre r:.-c r.. t <;-Uie rec 'm..:n c t.ti nc r :ieces-
ca:-:,- .. t i ,. T..c c mn ri zi -. *"-..'.!s --e ,r.' f 1 the. f :11 "'ia.:

'. _:-e eric- r. v diard, ....:-i .rit C..cn,,)
-' .- --r v. S l.-ivan, .JaLi !.1. .ec 9tci1itat- J
a: J i, St P:.ul, lin" s- ta
"! . . .. A.. h .J
Sticy F. D-.ic, Charit'- aniza K 2 city,
Jc- rr City.
Y rI!
II. T ninist:'.-ative 02-'-er-

c '*. .ult -"' t'.h efl rt.s -.f the C'r.m'n.issi n, Administrative Order
.:. X. dated !.arch 3, 1734, *".:z is".ed ,':ic.; created a General e::erm-
ti i tU: all sheltprcd \:rkzh.p u- .-, certp.i.-i c nditi ns. This Order
fineefine. s'-eltcre:.- v, r:zc'-r t oc chiarititle inFtituti ns "r activities
t.c.e f c ': --icted -i t f-r :r fit, but f r t-s. --,n' e f viin. re-
miu ern.rtive cirl:",ent f r *-h,-ically, r-.enitally a... ci-1 i7.. .1 ica"'_ed(
v*-r .erz c *.rc i,' ;,-videC. t: t any s-elterec '7-r-rh t :e c-titldd t the
e::cm-rr- ti ul i a 'pled e b L'.ie i-ll '11 -.'ing e-'iect:

1. 7"-- t crr .,l .y ]in-r i- -'t'.?r ixtcen "ears -f a-c
.c.--.Crt Z -CI. '-c tr E t1 A' i c t r-c t i -n-.l U-
r nc cd b' -i. .i .' 1 3 m.ruittee Gub-
c.auently n:'- vided f~r-

t e.i c i : 1.cr- tr.ctive -r'icc-cuttir.n- r
":"-" :er unfair .:-t-z i. c-u n-.titi'n;
x, r ',"i U 4.
tI. t ly al l--:..er e rctrr'- t.-r ,ur',- ses
f title I f t.e ..t n .l In& uctrial Bec:vcry
Act;

4. T: r- e ret? C far a: .- cibl1e v'i 'h the Y7ti -i' 1
oc: very A. ii nitr'ti r; _nd

9843 1 cit S 54




. 4-3 -


5. To carry out so fari .:.r -;'-osible the intent and
-j.pirit of the 1Tationi... Iiustrial Recovery Act.

AdCrinim-tr:,tive ?r.cr cc. X-.8: which was si'-nc d y i,
a.;roiite.'. L "-c 'Tati .n l S',eltrrud "or:'hoi- CormALittee ?-n... .roviced for
the o"L i.' n -o.id use of i -. '.r:',priLte i.A si nia rn-1. s-,ecific'j1. the form
of plcd-c L bcr sig. e' ., T.ti.o)]. 3 elterc-c Work'h}o-:' eid i-rthcr
req,.ir''r the s -ic6. Co..L.ittce t:' ,C'-.i..nate t ie otvr;rr' l eou-v.phical
re. io.n ,t ti-e Unitcd Stc.tev. v'ic" werc roefcrrec to in A'ministrative
Or, or 'o. X-2. Tile "cro.m.n cl of th' C. .-:i d tco .',,*ointcr'. uno r this
Order %a7:

?i:. Occ.r 'i. Sullivan, Prei,.'.-2-t, :1ti .I ?.-l'i-ubilitnation
Association, St. P..ul, M.innesota.

i". Oliver A. .ric'.'i.Ln, 1ilv-vu.-oe Good Will I.. ustrics,
.il'au,.-Lc, *Wisc-nsin

,'r. Fctcr J. Splmnn, SEccr-tar-, jDr,.:lym. Industrial :Aomo
fn-o t",-e lind, Lr.kl;.T., Tewv York]

;lr. ..dviar ._.'.ic-'.w- e-i-, ?re. i.c. ,, Altro '.,o.-.:hon.,,
S.Fronx, o..ci Y -rk City

''. J-h il. :it.-, Jr., Li-.vcct.or, In-Lti tutij f.,r th-e Cri-n-r c &
..". 2i.. ..-,'o.., T 'or City

Recv. J:'.-L. O'rdy, ti.... C")j'.:I-,re.ice ni CAtholic Chiarities,
Wn..ip-.oton, L. C.

C.
AdJini- 3trativo O.i',r UT-. X-5&' "'as cz,'" c .. July 2, 193'1, and pre-
scribe&' -'ul.c" ar'.r re ,.latio-". `',-, t-.., il'.un.nco of laLels to shoeltcred
wor-ksnc-.. a-:.( t-he v.ze t. crc-f. T'.is Or'e \r as a.'.cn.'.ed by,, Administrative
Order lTo. c7-Ci .rhi'ca .u. l: . Lc .t.. i t.-c rovisio-ns of Crl.or ":.X-59.

A!in iii:trativc Or'.. r -"o. X-S! provide.'. that the committee should
issue labels ber.rir.g the NIRL insi nmi:, to shelcrcc(. wvorkshops and collect
the actual arn., reasonr.rbic cr.ot t,-creo+', t, 3t:r, in tie qualifications
of a1slicants, .-. to ,'et,:.niac. -i.et.ier or not t..c.v came vidthin the scope
of t"he s l_ ier,-d .-or:.: -,m e,..:cm.tion, ucL.jcct. to L .e c.isap:,,rovvl of the
Administ?'at"r, an, i- ..r?.l *-,'rvi".ec jor the ;u'orvizon of sheltered
worlksh'o' cxe!.,,)tio:10 as --ovicoc f-r i--:i.c Act.

III. !ca,.cl a-r i nn

A C r;nTplC to h".tor of Sr. a '. c' cr:'. 1 '7,7r-'1ops ".-i-L '-' .- c oon written b,, 'n iss
Effie Lee [;oore, -'.xcc. Livc Asvist-i-.r cf t.-e Futlic ALoencics Division,
an'd ailo Executive Sccr-ct-.-r' if t-he ',:.'i,-,.l S-cltcrcd 7"crl:shop Com.iittee,
It is th'ereforc miu:eccz.2rv- t.) treat icrc t-;e auninistrationr. of the com-
mittee. General' it b.:2 -. ztatcd, ho'ev-:r, thx-t the conflict between
industry an'". s'.icltered w'ir1:hops \.os la:'('"el. eli4iinatOd n.n rCeneral work-
ing. conditi-i-s witlinii th` '.-eltered ir:c o-i '-crc 'roatly i. .-i roved.'.

S2 See E:_-ibit 'e. 55
3 Sae E-h-ibit Jo. 36
See E-hibit _o. 37
. 5 See aloo,"Sn-ieltered Worzsho7s imnd.cr T:T.?..A.," by V. J. Clarke, and
Leo. G. Cyr, Adnr.inistrtion St-.cies





-44-1


J. u: 1Y-D' T7 1;:D PS C. cwwc:: CC r. c-S


I. Cprtifi:ate of Uomlinnce -'.eqcired
nf l i ('or.:,
II. 'rit in of Excm: in tf. i.' r: ,-
,,)veri..ent Crntractz
III. Administrative Order X-48
IV. E..xecut-ive C--fc ":* GG7
V. InLer.) re ti.m, 'f -xecutivr
Drder- p 'o. 6767
VI. CO nc luz 'iz


I. Certificate of ',mr'liaTnco eI, c:ic of ie'..e
C4 E 1ZA 19 ti e 9 it via
--;' ::..prvtive ',rc:iLer "o. tC46I _te/ "n-'cn 14, 193-a, it /as .:oD-
vided t..-t '11 i-.;vit.-tionc --r.' .: .-i bc".--e lf n'f t.e UTnited Statez Govern-
ment t )i' Cers S:,-Jn rovicde t-t :ir biL houl l :'be considered unless
the ti:. er- certified t,-it he acc o:y'lyi.-- vit the ;Jdc -) whLic: he
was sr jczt :r if t.-ic bi'(c'r 'n:- -i't zub.jcct to coC t'.-_%t he would
co0nplY wit;. t..c Presidents lec-' ioyr.iernt . ^rjvi2.e. t.m-t all J-rverinent c .',tr-.ct- .-.'',l c-it-i:-in i wn'vision re-
quirinj: Sut. omr.pli.n-ce but th,-t te'-ic ministr-to-.-....- --r.thorize-.- to
ma:e -e:ce-)tions i.-. -pecific casec..

II. .ri2i.: of EexpTrtijn t:, i.'.ders o.-i Covcrx n,10nt' Contracts

"ne of th-e effects of co'e -) er tic.' was th-: t in numerous
coze: c,.r.-.etinr- bids .mcre ic'.entic-i, in -rico thou -h i, most instances
the Go'vc--L..ent vwaz b.- lay re.aire'i to c.-i.itract vi'--; the lo-'est bi .:.er.

This was clai-med to have resulted frnomi '.ie -,,rice filing 'ro-
vision: of the codes and the f-urthier requir-ement of a certificate of
compliance under Ex.ecutive Order :-To. -3646.

Aczsuming that variations existe tw betvcen prices filed b,- the
memoirs -f a -articular industry, it is not entirely clear how such
rice filing" -ro-.ision. rcsulteC in icen ical bids althnouwh necessarily
the Li:.er: fr-eedom of action wasi restrictp' to the extent that he could
not i'. tlo,.': hiZ owrn price list. A further study of the effect of
-'rice :ili.g provisions, especially with respect to identical bids
I-.'.)l '-r;'vuce v-!au.lp infIrnintion. It :.ia- often been asserted that
S.Ic:. -,:iice filin-.-,roviriT.. tc-,:.e:1 t:, create a iuzif ir. price structure.
-ne :~C.C...Cion )" i.':entical bi-s .,ouli seem to substantiate this view.

!This onpi -ion i: further suported b, a C-)vernnient rublicVtion
entitlcK',"..e -mul-.ti.ns C-ove,-ir- idz .'*.. ifie" tD Offer rcvernment A en-
cies Fri-ez. 1%i. 3lnv: Puioliched Quotation:", bcin' the subject master
of the anctutive an'. A'ministrative Or. cr:- herei.x-.:tcr referred to.
The o-rti),'. of t-ec ,Lblication '.n-',lic.- ble is the following:

"To t-ce care of c?.Ses in vl.ich the full
_____15 c.r cent variatio:J. mi-y cause ..arLn'v.e to an
Execuivc rOn er '_o, 613-16, .:chicit .', 58


6r-A





- 45 -


industry'Is ,-icc str.tcture, the order rovides
that if complaint is filed, the A.i.iinistr-ator
for In ustril r.ec-,ve:'y :i"a after due investi.;a-
tion -.i. c in.-.in, of0 i.'-e f.actr reduce tn-c allow-
able -crc.ei-.tate, but in no cace to lees than 5
per ceC.t L'IO? the ,,ste. v'icez."

IlI, Ac"miniz t ratio ye O-rder X-43

O- June 12, 19A4, Ar.mi.iistm-otlve .rer X-.18 was issued, which
exem 'ted in1.uctry menucrs wLtO sho.ul there ,.fto- aid on coverzient c-.n-
tracts, froi.i compliance v.ith coCe --.v/is i on v1ic> -.rshibited anv' of
-.7 r A, n t '~t-,s n inf s c r, r -
the follovin." practices, anrd suc. lerer-., tv /itt m'cift such ro
1 hi 'itio s, c.-ulC: (a) Qu.-te i)ricec ri. tor:.is to cuch o.rncies as f.-.vor-
Sabl:. as bhase "-)rmittcd to ciruacr)ia I b";.'ers for like quantities; (t',
Quote ..einite .*ricec or terms-, bot subject to .adjustment relatin, to
increas'e"L cost for dc-ini.e.. .,
increase costs, for d'fnte 4uantiies anKr" for finitenie periods not
to exceed three i';ont;'- (iunless co,.c rovii.o'21 longer -neriod); (c) Sane
as (b) e-ceot fo-r in'.rfinitc qua.ntit.ics ,or Cc.ei-i:ite -er-iodc not to
exceed si:: month ; (C) ".. t.e ':-,ice- .',c. tc.'eris t *,ly. to contracts tc,
Become efiectivc njt rore t"_'..i ," .ay. ,ftLw' t'c U. i. i, bid -te (e)
Quote prices f.o.b. o,,inL of .:.riin '.nd/n-r 1 --ti: tion. The or-der
contained'., a rirovizo t -'., it Iho 1 nt -',rr.'.t 'cvi-itio, fr,',m or nb, ,.i.on-
ment of code, :)jpe.i -,-rice -n. cost r:tecti' ".L -.covi :'ic nn.C<

IV. Executive 0-'de- T,-, 'O

Er::ccti'vc Orc.er 11,. 364G was m',.ificc by Z'-ec;Ltive Order :To.
67S7, ap--rwved June 2', 1934-, ihiich'- auti'rL-.ed any person submittin,-
a bid to ti-o Lover-,icnt, at. i-ices w'ich, -LL-.d.eo." r.i a,- roved code,
GshoulC.d nLve 'Oeen filer v'ita the c: ...e -,ut,.-..ritv,'i.r to ti-,eir cuotai:ion
to quote .a -,)r-icc m-tu'_3r__ tt._i. pE7,r c,?rt :cleov, his filed price, Which
action vould be dee'rriG' ..-I r,.rli..to C,';.:.licp : ,it:L the Code require-
ments, if, ifter t.ie c id '.-. -C 0-.i. ed, 2c7 h Li.cOr '.'/hoC quoted belov, his
Filed -rice, inriditel;' filet: c,- of -ic old ".ith the code author-
ity or iesi "ated f enc:,. If r-ma"li.at ar ...a,-e t- the Ac.iAinistrator,
.id he fov-nd, after in.-:sti.-mtioi>, th]at L,-r. roilerr,-:oc of0 1l oer cent
resulted in K.estruct.iv'e -r-ice cutting he ".'as aut.n'crircd to issue a..
adninis trative :rder c;;...ci .l.e i.:.ler.c t n xtent ic cssar- t,
F prevent -rice c-.ittin:, but in nn event to f tIier.. c of less th,.n 5
per cent. The A-..iinist r.tor '"?.s 2irec.ted to. c:uc a tLidy to be rna'.e
of the effects -f t.ie Cr.der . .ta ,.o.a-.. -_ fT.ir com)ctition in sales
to ou.blic and privatee c..--t.-omr, ". to r-;,nort .ichin siy months.0

V. Interi'etation f -::-:ecutiveo ,r.er o. F7r"7

O.-n J)Uly 1 14 1,9 L_.c.al iic.mora."..ur ,,e,. 49 -,ts z nt ,byr I.r.
Black'ell Sm;ith t tthe L,- al Staff, in-te,-.reti,. Executive Order jo.
6767, so faEr as tilr ..'ice tolerrnce exc:.'rti.j' is cr ncern-d, substanti-
ally '..s follows:

2Arxminiztr... t-,pe Dr.er :X-48, I.hibit 4 &9

.Executive Order ITo. 57.57, -:-hibit "To. 4'7.


, 9845
IF




- 46 -


II


(a) The r.cner'.l e,-ms of t].. Orc.e-r nr':.it of no
*:(<, ti'L -,i,,* :.vr' cids 1 rr cent uelo, file.' rices
',)"d ) : arc L-" .vern.:F.-t a, n.icies vit-tho-.t. code
vi 'l. i n -/c.i t I'. r,-cultin, i.I ,Iricc Clo'- cost
,.- l,", 2':,? e inii'-r"- a-rices, rovide..'., .'& tie
S.ice iled, f 3:" :.ic. toler-.nce "'--s '.lovi':, '-is a
.-lid .-rice -i-u er t .- c Ole 'rovisio.io (b) A:-,y le.3al
i.:c r trcr tati .n f thie cl.us '. .ic1t require' t: -.t .- copy
.-f e-ch toler-'cc 'U i to be filed -'-ith the Core Author-
ity or a'c-Ency, oshoul' be cased v---n its ""ordi.-q whichh
',az oclieved n't to )..tif; ni i-.terjrenation that
filing ipuch u co-oy c., ntituted filing a revised price
v'hich then became 2vail lble as cach, to all purchasers.
(c', i t.ie A'ministr.tr found trL.t th-c 15 er cent
tolerance ''as resulti. v in destructive -o.ice cutting,
..c could rec, s. .e tn preventt such result, but the
tolcraice relucti. c-,l.:. not orcc-ed 10 -or cent.

VI., Co1cl- :i Dn

ITRA Cfficc 'z.nual, -art III, recijr- -100C, stated. tir..t Executive
Or .er -o. 6767 "1z .a.,t ceen very oxtcnsively .:p-ilic'., conseouently the
.lro'olenz :^n', i.-!vulveL in Govern.ien Caontrcts r'e:l. -.t'o lostiot exclusiv-ely
to o, : 7,,G6, on ;hzich the foll.'.7,ic sections '.r' uaI.scd.."

Since executive -rc'er A:,n -7.57 operated i:ithout the necessity of
furt".er c.-.cific orCerv the i'T-A would d in all r-'obability have no offi-
cial record of th.e extent to -'hich t".-.-z privilege c-nferreC. by this
or'cir '-as v-tiled ofi. -'oviever, -. member. oiddinG nelow their filed
T.ricez '.-cre required to submit such price quotations to code author-
ities or otherr confidential aencies the code authorities should nave
t;.i_ i.,f.rrF.tio.. Further study." from. tii source 1uii':t be of v.-lue.'







q\







'r'" t" r 3n, 6$.767, ,-dihi-it To. 4( C
... -cc .t ",' .L -rt k~
See Iso "Reol.tio.ihip nf :,R.A. to Goveriaent C:,nttricts and Conitrasts
Involvi.v: t.e. U:e of & -.ver-nrcnt Funds," t,: Jordcan D. Hill, A.'rminic-
tration Studies; Chatcr V of "Aireenmcnts U r Section 4(a) and 7(b)
of "I.R.A., cy C. .-itlin, A'lministr;-.tion Studies.
2.
9 ?4 5




- 47 -


X, ASS;SS: Th-: :;x- .I0o:

I. Origin of DJder
II. The OrI.Pr-
III. Jperati-. i Lf'_Lct
IV. 'rncliucion


I. Origin of ,-Kc.r

P-i .r tc 2xecutivc Ordcr h- '6'.?, c .t.rib.tio,ic to code a.Lifnis-
tration's exp.-Censs LLc'. Qcot o.0 volur.tary L-isi, ciner a standard ',ro-
visioi w1ich v'aC u; .t'i..ed i, ,n.'- cv-jed co.er and r'roviri.d t-iat .r.iocrs
were toj e c -tit lc.d to .-'art i.ci-.te iL. i:.- sl-.re t..e .: nefitc of the
activitiec- ol tho Cor.c Actt1ority, c.nC. ).rticin-tco in t'.e selection of
the ..ieoero tecreef o. .,i.se]tir. to :;niil co..Lplyin, '.,ith Co'de.c require-
ments a:n stistp.i.in, t'..L re r.coi.bole s-..re of administration n expcase,
sane to be determined o. the Code Authority, subject to review by the
Administrator, on tie tais of vjlo;te of o-'sinese, or other equitable
factors, Under such provision crnntrir;. i.i to the e:c'-,enses could not
be legally enforced.

rn nemrand from.. L,.uren.cc ". -LzaLo, ,evie;v -ivi-zion Coumsel, to
'.. Jeffrey, .-ated Jut-e l934 as to ta.1 purposes a.. effect of
Executive Order :'o. 06673, .rC. -i.iin i.tr active OrLer X-36, it 'as stated
that the Fresident issued the executive o.'."er to meet ..the vociferously
expresselL d-'esires of r'.-,:Ar in,.Lustries to -a]:o failure t) pay assessments
for e-ro.nscs of code a.vministratio.1 a vioLtiion of tte code.

,The Executive 3J-rer wav a-c 'r'.roved on A.ril 1K, 1934'.

II. The Order

The essential part of the order vas as follows:

It i-as orderedd "t'L at -the fnll.:rin clause or any
ar-.yro-priate m.xific-tio:L t'>ercof s.all become
effective -."s iart if r.y cde nf fair comoeti-
tion a.:,cr'oved -Lnder c.i.' 'itic (C-itle I of
.a.tional I,,.ustrial oeccve-ry Act of June 16,
1933), up..n a' 1 i c.tio r. t".er.-. i'o--r (1) -ours uiant
to the --rovisions of t'.e Cnde -i.:t.i,; t ie:'.d-
mentc taero-to or (2) b.-L', o.-,e o" .:-.ore trade or
i..custrial Os2ocii,, o ;.rcuows truly repre-
sentative of th-ie tr'to r irC-.''. or r il... ii
u. ._ . t,'. Io r .. 1-DIVI n.
thereof covereuL y th-. Code, if t.c A::inirtrator
for In.",strial Rcccvcr:- chc.ll fin.', toSt .'-,'roval by
lim of :uch clauses is necessary i: oi.er to ef-
fectuate tn ie p-licy of Title I of roi.'. Act:

Il1 It I-ing o"'urC necessary, in oruei- to

'Exhibit io. 41.
SExecutive Order ---o. 6678, Office manual Part V, V-C-29, Exhibit 42.

,-9 845

.A






support th.e administration of this code a.',, to
..:;int.'i, thLe st.n' ,r 'r.'Is .-f fair coinpetitio:n
Ezt:,'oliched b., t.A c Code a 'L. tc: ef'fect'ate the
-.olic; of th.e Act, the Code Authority is au-
t-.,ri:-:e, subject to tie a-prdval of the Arc.-
minictrat-r:
"(a) To incur reasonable obli,:ations
as are necessary r.nd -"roper f)r the foreroi'i;
pmuposes an t .-eet such obli.at-ions out of
funds whichh may be raised :-s ierei.i.fter .:,ro-
vidcd anC '.hici shiell be held in. trust for the
r.urses of t.'.e Coee;

"(b) To submit to t.'e ACminiistrator f1r
his a-,nroval, subject to such notice and op-rortunity
to be heard as he may deem necessary, (1) an itemized
budget of its esti1-.ated expenses for t.-o f're;;oing
purposes, ?and (2) an equitable basis u'-on .:hiich the
funds necessary to support such bud-et shall 'be con-
tributed by the members of the Inc.ustry;

"(c) After such bud:ct. 3,. basis )of c.-ntri-
bution have been a,-.roved b; the A ministrator,
to d.eterr'ine and secure equitable coitrib-.tion
as above set forth by all such members of -,he in-
dustry, a-. to that end, if necessary, to institute
leL.al proceedings therefore in its o'.T. name.

"2 Only members of the Industry complying with the Code
a,,d contributing to th.e expenses of its ac.ninistration
as provided in Section 1 hereof shall be entitled to
'articiwa.te in the selection of the members of the Code
Authority ir to receive the benefit of its voluntary
activities or to make use of any emblem or indignia of
the :Tational Recover.,- A.c-ministration."

III. OJperation .and Effect

On Arril 14, 1934, Administrative 0"rder X-200 wao issued, which
'-rovided fo-r th.e collection of expenses of code a.'..ninizstration, non-
ne.wment of ',".ich constituted a violation of the coCLe only if an item-
ize'-'L budget bad oeen ar-.-roved, and the cole authority certified thr.t
the ;,.nber h-,d been Liven notice of the ar-r-roved basis of contribution,
that non-payment within 30 d.'ys after such notice was a code violation,
that the .iconer had ri 9ht to protest, bout iad. failed. t- pay or file a
protest. It was furth-.er provided that no members should be in violation
of the code for fr.il'..re to contribute to any in.'ustr: other than thnt |
17hici-, embraced his irincinal line of business, obut any code authority
coul(' show cause to NRA why a mrnber subject to its code, should( con-
tribute to the expenses of same, in a:l'K'ition.i to a contribution by him
to ai.other code or codes.,

'Administrative Order X-20, Office 'i..nual, P..rt V, V-D-ll Exhibit 43.


9SE45


IF


Ii


- 4E -




- 49 -


On May 26, Administrative order X-364, uas issued, supplementing the
Executive Order arnd rescinding Administrative Order X-20. It prescribed
rules, regulations .and procedure governing the collection of contribu-
tions, amd provided as follows:

"Fending determinations by I1.R.A. with respect to specific Codes
upon cause shown by a Code Authority or otherwise, every member
of a trade or industry is hereby exempted from any obligation
to contribute to the expenses of administration of any Code or
Codes other than the Code for the trade or industry which em-
braces his principal line of business, provided that he shall
submit such information and co:.ply with such regulations with
respect to such exemption as IT.R.A. may require or prescribe."

It vas not a policy requirement that a code contain the mandatory
assessment provisions contemplated by administrative Order X-36, but
unless the requirements of tne Order wore met, contributions of a
compulsory nature could not bo collected (office i.Manual II 1670).

Subsequent administrative orders of interpretations, and granting
exemptions pursuant to the'order r-ere as follows:

Administrative order i:o. X-36-1, dated October 11, 1934,
held that an establishment wiich operated under more than one
divisional or sub-.divisional code, each having an approved
budget, was exempted by paragraph III of Administrative Order
X-36 from contributing to other thtmnthe division or sub-division
which constituted its principal line of business. (See Review
Division precedent Ulo. 63, paragraph III).

Administrative Order X--3$-2, dated liarch 30, 1935 held that the
exemption conferred by X-36, did not extend to the purchase of labels,
and all members of the industry were obligated to pay for labels at
the approved rates. (See Review Division'precedent No. 63, Para-
graph III).

Administrative Order X-78 "as issued August 21, 1934, providing
that, pending further order clarifying the problem of multiple assess-
ments in the Distributing Trades, no order of termination of exemption
under X-36 should be construed to:

(1) Require any member to contribute to any code covering
wholesale distribution by him, except the code covering his
: principal line of wholesale distribution, provided, however,
the termination should ap)ly to eny of his business other
than wholesaling.

(2) (Consists of a similar provision as applied to Retail
Trade members).

In construin (1i) above, the Legal Division, on February 21, 1935,
Held that a wholesaler wvas required to pay the code Authority for his
principal line of business only on the basis of business done under that
Sone code, and was not required to pay such principal line wholesaling
code authority on the basis of his entire wholesaling business (See
Review Division Precedent 1-1o. 63, Paragraph IV).
: (4) Adminirstrative Order X-6, Office Manual, Fart V, V-D-21, Exhibit 44.
UA-9845




- 50 -


Administrative Order X-122, approved December 14, 1934, provided
that because of conflict of the Graphic Arts Industries Code with certain
other codes, any establishment operating under one or more codes other
than the Graphic Arts Industries Code, which did not sell printed matter
in competition with producers under that Code, and which employed on
graphic arts processes not more than nine mechanical employees was ex-
empt from the provisions of said code governing the collection of assess-
ments for code administration expenses. This order was rescinded by
Administrative Order X-133, approved January 22, 1935, but the exemption
vwas substantially re-adopted.

Administrative Order X-131, approved January 7, 1935, established
a Si .-.le Assessment Principle for members engaged in retail distribution.
It terminated exemptions granted by X-36 or X-78, effective January 1,
1935, which applied to the retail business of retail establishments,
after which, a retail establishment, to the extent it engaged in retail
distribution, was required to pay a single assessment upon its total
retail business to the expense of its principal line code (l) at the
rate of assessment approved for that code, or (2) upon its principal
line at the rate approved for that code, and upon each minor line at
the rate approved for each minor line code. If contribution was made to
the expense of another code, based upon the business covered by that
code, credit and deduction therefore was to be taken in computing payment
to the principal line code. (See Review Division Precedent No. 63,
Paragraph V).

Administrative Order X-139, approved April 10, 1935, provided that
applications for approval of budgets and bases of contribution should
contain recommendations to eliminate (1) nuisance contributions and
(2) for exemptions designed to avoid inequitable contributions or
articles which were not marketed per so. (See Peview Division
Precedent No. 63, Paragraph VII).

Administrative Order X-140, approved April 11, 1935, granted a
qualified exemption of members engaged in a Principal Line Retail by
providing that separate establishments whose principal line measured
by dollar volume, was retail distribution, were exempted from contri-
bution to any minor line non-retail code governing a portion of the
business, provided (1) non-retail business did not require full time
services of 2 or more employees, and (2) the obligations of such es-
tablishments to affix labels, and pay the approved label rates, was
not affected. (See Review Division precedent No, 64, Paragraph VI).

IV. Conclusion

This problem is one of the results of multiple coverage. A concern
even though with respect to its own organization an integrated unit
might be subject to several codes. Each code may be totally different
with respect to contributions to the code authorities. One code may
contain a mandatory provision for assessment; another code may contain
a provision for voluntary contributions.- The bases of assessment or
contribution differed. For example, one code would be based upon dollar
volume of business, another upon production volume, by dollar volume of
payroll, or by the number of employees and many other different bases of
assessment. Finally, the rate of assessment varied with the individual


9845


2




















Ii




S51 -


industry. When the basis of assussmeit differed, it was difficult to-
ascertain whether or not a particular member was paying double assess-
ment or less than his proportionate share.

The difficulties wore in all probability not anticipated in the
early days of code formulations and these complications were met in
individual cases as they arose during the course of administration.
The fact that policy changed from time to time as embodied in the nu-
merous orders on the subject indicates that the difficulties were not
entirely solved. For example, under Administrative Order X-36 a concern
with 51 per cent of its business in one code and 49 per cent in another
might be exempted from assessment on the 49 per cent of its business.
The result was the flood of orders from a great number of industries
terminating this exemption.

"ith the experience of the past no doubt some broad policy in-
itiated at the beginning of the code making could be evolved. This
would involve as far as possible uniformity in the assessment pro-
visions of each code. If mandatory provisions are legal then all codes
might contain a similar mandatory provision.

The same uniform policy could be continued in the organization and
administration of the code authorities in respect to assessments. Thus,
a uniform bases of assessments could be adopted: For example, assess-
ments might be based upon the dollar volume of business. This would
eliminate many of the complications end uncertainties. There will still,
however, be the question of differences in rates of assessments. Con-
sidered as a tax, there is considerable merit in the position that the
rate be uniform in all industries. Cn the other hand this is opposed to
the idea of organization by individual industries and the belief that
each industry should be responsible for financing its ovmn administration.
SWhether the latter was adopted or not, it would seem well that a member
receive a single questionnaire and a single notice of assessment, and
that the apportionment of that assessment be worked out through a clear-
ing house or a system of credits of the code authorities involved. As
a matter of fact this principle was adopted in Administrative Order
X-131 with respect to establishments engaged in Retail Distribution.













5 See also Part D, entitled "Code Autnority Finances", by
H. P. Vose, of "Code Authorities and Their part in the
Administration of the IT.I.R.A.", II.R.A. Administration
Studio s.



9845




- 52 -


L. TERRIT ?-IAL r-OSSrESS I'lS


N. Adi "irt. t c S r'..r !o. X-,"
I D r .r. r i. n L
I .- Y. 7,-:t 'il i-o", i:,l :-d COL,
I'. C ).":c lur. Lon

I. Amir.iiSt'- tivc Or'cr ]o. X-60

:LC......i .tr tivc "1J .rLr .3o. X-6', o t3 Fcbra ry .', 1.9 4, cxc'tptc' tr .:'..s
-nid i::.vui--. rc i.- i', tcrritori E :. Fui'rto Rico '.n-1. H V.-ii from codes
thr tDiL ': p- roU u., til Sc -i-.-b r 1, 19.4, -.nC fro. co-'.:- s th-.rc ft r
p'r.,vc:' : rc j of si w '-:' `'6 Iv i ..t c t>,- I'f such pprovls.
It ,uirtcr ] ro'vil .d, :.'" v..r, t. t t'. .'-'d-r r'..l.i nut f-'ect ny
cxcm-:t ti.. or .;.::cctinn : ny, i.-. ustry or -'-cr-.on i.-. -uci tcrr'itories nd
t v t ". r 3:r.r zhu Ld nit ff.ct ny cC-)' fcr tr .".. o-r iiustr, in
Pu'rto Rico r'. H ii (nr ..ur: "'l-. mic il ,j. ..oc 1 cor .:2 or tr '.es .nd in-
du-.'tr'ic yc ul i r t' such torrito:-i o.-.). At n:', ti bcforc the cpir-.tian
of thc cy.-.: ti ,: th-cr'L'ty gr nt-d qu ificd .-,coci ti-;.-. i,. cith.-r of the
torritorio-- could ':,-* l, for nmdific tion .f co'. or the. p rov 1 of
sr r tc c,. .'. Provision 1-.s l- -. :c f r i-1T.-ls. (*)

II. Tceritori l Coopr tion Agrc m..nt

3 y A(miir.i'tr tivc Qr..rr Lio. X-8's:, c t. c A-,g-u.t 27, 1934, the. Ad-
maizi:tr tr -," ro'.-: d t..: fnrxr. of ihr. TLrritori-i C~o-rcr tion Agreement
for Puerto :dico, -:'v- ii nd A! .s"": -hich '7. s tt chc.. thcrcto. (**)

T5- Ajrc tn t prDvidcd th l it o-il r. n in effect intil (.)
C) r t,. cr.ca -1d Ox,.;.n n roved; (i .;c.C de-.,-utvy for the territory
or '. .:r -- tk 0.1 ,_1- c :-- -- 5, 1 "5
or.c,:._.r it t:rri:-tion; (c) not lt:r th ;-I J-aic 15, 197.5. The Agrccmcnt
furt.v-.r i..crI-':d t-rovisior. : r- ti to ,-xian m ;ic r., 1: it-on.l comnpns -
ti. for -v. --time, c:x:em;..tiun from rii ::irnur.A hour.r in codcs of emergency a.iii-
t. ic.- r::- -m ",ur'-, ci simrn -' cc, cq-ait L.: .-.Jur.t.i-:t, child 1 bor,
1- r.xir: m.,. ",- rc.iLiccs, h .ndic "-c.'. vor .-..., collective b r .1 inin, n.c
r.rovi. 1in.s Vi.'. 'rohii L' mo ol r0r n'. o .. r-ric of sm'1l entcr-rir-.

I-I. Exm'-ti n- from ini-n". C3'"s

A i:-t M coc,. '' :n ch t includAr' not o-.:" Continent I Unitec.-
St t.- b.HL ii, Purto Rico -n" Al-.':- "'cs.. A cocc w-"s consti'cIC s
- ini ..I. cu.jr if itc '.Lr-rn, ( ) inclum.c u.- t tc,;.vnt s to th.: extent of
it. ic :i-. n, or, (c) Ci.. n..t .._i... tht re of i. n- liC tion to x ::clurt.
ny or i :,I tho t: :-ritoric-, : pn.,.," io:.r. (***)


* A l ..l t ....i, '. "" t *, "*:: -io. 4 .-

(**) Adr-.i.:ir.- tivc: Dr:l.:r 1,io. X-.'E .nd Tcrriteri 1 C-opcr tion
A',;:'. : .* n Zyhibit To. 46.

(**) S "7.A. Office -.nul II-40'C-"'9.


9845




- 53 -


Office i'emorarndum iro. Y 5$, is-A:n6 :'?ay 3, 1934, authorized the De-
puty- Adj.inistratir for tne Territ-'-y of Alaska, subject to the suner-
vision of and revie-,: by t-.,e Itiona] Industrial Recovery Board, to grant
or deny e::enrtior:s from code -nrovisinns to the extent that a code ap-
plied to transaction within that tcrritnry-, except that such authoriza-
tion was not to apply to the folo.-n codes:

Canning Industry
Canned Salmon Industry
Lurmber and Timber Products Inc'ustry
Fishery Industr- (Including supuolementary-, Codes (*)

Office Memorandum No. 357, (**) issued .lay 3, 1P35, provided that
certain provisions, i.e., Part III, Section 3231 and 3234.2 should not
apply to the Deputy for Alaska in the exercise of the authority given
him'under Office 'emorandur, No. 356.

IV. Conclusion

This topic includes only the ac'ninistrative Order granting an ex-
emption from mainl--nd codeE in the territories and the related Office
.emoranca on the subject. Ho attempt is nade to treat the administration
of codes in these territories. Sp-'Li.9L studies end histories have been
prepared and written covering this subject, both generally and with re-
ference to particular trades and industries. (***)

(*) Office Iemorandun Ho. 756, Exhibit Fo. 47.

(** Office Hemornndumn 357, Exhibit ITo. 38.


(***) Generall .:


Puerto Rico:









Hawai i: -


"The Code Mlakinp Program of N.R.A. in Territories"
by F. J. Pufficy, Adsainintratinn Studies. "Chapter
IV of "Acreerents under Section 4(a) and 7(b) of
i. I. R. A.", by C. A. Giblin, Administration Studies.

History of :TRA Administration in the Territory of
Alaska, by 1. W7. Stead.

Report entitled "HiMh S-oots of IMA in Puerto Rico"
by Boaz Long. See also the following code histories
aEpplicable solely to Puerto Rico: Bak-ing, Motion
Picture, -nd Banking Lcy Frederick Sartorious; e:en's
Clothing by alter I;. Barrow; Cigar and Tobacco,
and Survey of .eedle-r-or`h Homeror-ers by J. P. S.
I:innet; and the Study of ITeedle-vork in Puerto P.ico
by J. P. S. liinnet end Boaz Long.

The following histories and studies by Frederick
Simpick: "A Survey of Labor Conditions in the
Principal Industries of the Territory of Hawaii";
"High Soot :emorandui" of NXPA in Hawaii; "History
of Graphic Arts in Hawaii and Retail Trade in
Hawai i."


9845#







I











i


I






OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION


THE DIVISION OF REVIEW

THE WORK OF THE DIVISION OF REVIEW

Executive Order No. 7075. dated June 15, 1935, established the Division of Review of the
National Recovery Administration. The pertinent part of the Executive Order reads thus:

The Division of Review shall assemble, analyze, and report upon the statistical
information and records of experience of the operations of the various trades and
industries heretofore subject to codes of fair competition, shall study the ef-
fects of such codes upon trade, industrial and labor conditions in general, and
other related matters, shall make available for the protection and promotion of
the public interest an adequate review of the effects of the Administration of
Title I of the National Industrial Recovery Act, and the principles and policies
put into effect thereunder, and shall otherwise aid the President in carrying out
his functions under the said Title. I hereby appoint Leon C. Marshall, Director of
the Division of Review.

The study sections set up in the Division of Review covered these areas: industry
studies, foreign trade studies, labor studies, trade practice studies, statistical studies,
legal studies, administration studies, miscellaneous studies, and the writing of code his-
tories. The materials which were produced by these sections are indicated below.

Except for the Code Histories, all items mentioned below are scheduled to be in mimeo-
graphed form by April 1. 1936.

THE CODE HISTORIES

The Code Histories are documented accounts of the formation and administration of the
Scores. They contain the definition of the industry and the principal products thereof; the
classes of members in the industry; the history of code formation including an account of the
sponsoring organizations, the conferences, negotiations and hearings which were held, and
the activities in connection with obtaining approval of the code; the history of the ad-
ministration of the code, covering the organization and operation of the code authority,
the difficulties encountered in administration, the extent of compliance or non-compliance,
and the general success or lack of success of the code; and an analysis of the operation of
code provisions dealing with wages, hours, trade practices, and other provisions. These
and other matters are canvassed not only in terms of the materials to be found in the files,
but also in terms of the experiences of the deputies and others concerned with code formation
and administration.

The Code Histories, (including histories of certain NRA units or agencies) are not
mimeographed. They are to be turned over to the Department of Commerce in typewritten form.
All told, approximately eight hundred and fifty (850) histories will be completed. This
number includes all of the approved codes and some of the unapproved codes. (In Work Mate-
Erials No. 1, Contents of Code Histories, will be found the outline which governed the
preparation of Code Histories.)



(In the case of all approved codes and also in the case of some codes not carried to
.final approval, there are in NRA files further materials on industries. Particularly worthy
of mention are the Volumes I, II and III which constitute the material officially submitted
to the President in support of the recommendation for approval of each code. These volumes
9768-1.







-ii -


set forth the origination of the codes, the sponsoring group, the evidence advanced to sup-
port the proposal, the report of the Division of Research and Planning on the industry, the
recommendations of the various Advisory Boards, certain types of official correspondence,
the transcript of the formal hearing, and other pertinent matter. There is also much offi-
cial information relating to amendments, interpretations, exemptions, and other rulings. The
materials mentioned in this paragraph were of course not a part of the work of the Division
of Review.}

THE WORK MATERIALS SERIES

In the work of the Division of Review a considerable number of studies and compilations
of ,ata (other than those noted below in the Evidence Studies Series and the Statistical
Material Series) have been made. These are listed below, grouped according to the char-
acter of the material. (In Work Materials No. 17, Tentative Outlines and Summaries of
Studies in Process, the materials are fully described).


Inldustry Studies

Automobile Industry, An Economic Survey of
Bituminous Coal Industry under Free Competition and Code Regulation, Ecnomio Survey of
Electrical Manufacturing Industry, The
Fertilizer Industry, The
Fishery Industry and the Fishery Codes
Fishermen and Fishing Craft, Earnings of
Foreign Trade under the National Industrial Recovery Act
Part A Competitive Position of the United States in International Trade 1927-29 through
1934.
Part B Section 3 (e) of NIRA and its administration.
Part C Imports and Importing under NRA Codes.
Part D Exports and Exporting under NRA Codes.
Forest Products Industries, Foreign Trade Study of the
Iron and Steel Industry, The
Knitting Industries, The
Leather and Shoe Industries, The
Lumber and Timber Products Industry, Economic Problems of the
Men's Clothing Industry, The
Millinery Industry, The
Motion Picture Industry, The
Migration of Industry, The: The Shift of Twenty-Five Needle Trades From New York State,
1926 to 1934
National Labor Income by Months, 1929-35
Paper Industry, The
Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans-
portation, January 1923, to date
Retail Trades Study, The
Rubber Industry Study, The
Textile Industry in the United Kingdom, France, Germany, Italy, and Japan
Textile Yarns and Fabrics
Tobacco Industry, The
Wholesale Trades Study, The
Women's Neckwear and Scarf Industry, Financial and Labor Data on
9768-2







- iii -


Women's Apparel Industry, Some Aspects of the

Trade Practice Studies

Commodities. Information Concerning: A Study of NRA and Related Experiences in Control
Distribution. Manufacturers' Control of: Trade Practice Provisions in Selected NRA Codes
Distributive Relations in the Asbestos Industry
Design Piracy: The Problem and Its Treatment Under NRA Codes
Electrical Mfg. Industry: Price Filing Study
Fertilizer Industry: Price Filing Study
Geographical Price Relations Under Codes of Fair Competition, Control of
Minimum Price Regulation Under Codes of Fair Competition
Multiple Basing Point System in the Lime Industry: Operation of the
Price Control in the Coffee Industry
Price Filing Under NRA Codes
Production Control in the Ice Industry
Production Control, Case Studies in
Resale Price Maintenance Legislation in the United States
Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry.
Trade Practice Rules of The Federal Trade Commission (1914-1936): A classification for
comparison with Trade Practice Provisions of NRA Codes.

Labor Studies

Cap and Cloth Hat Industry, Commission Report on Wage Differentials in
Earnings in Selected Manufacturing Industries, by States, 1933-35
Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-35
Fur Manufacturing, Commission Report on Wages and Hours in
Hours and Wages in American Industry
Labor Program Under the National Industrial Recovery Act, The
Part A. Introduction
Part B. Control of Hours and Reemployment
Part C. Control of Wages
Part D. Control of Other Conditions of Employment
Part E. Section 7(a) of the Recovery Act
Materials in the Field of Industrial Relations
PRA Census of Employment, June, October, 1933
Puerto Rico Needlework, Homewor;-.ers Survey

Administrative Studies


Administrative and Legal Aspects of Sta.s, Exe.aptions and Exceptions, Code Amendments, Con-
ditional Orders of Approval
Administrative Interpretations of NRA Codes
Administrative La.v and Procedure under the NIRA
Agreements Under Sections 4(a) and 7(b) of the iIRA
Approved Codes in Industry Groups, Classification of
Basic Code. the -- (Administrative Order X-61)
Code Authorities and Their part in the Administration of the NIRA
Part A. Introduction
Part B. Nature, Composition and Organization of Code Authorities
9768-3.








IV -
Part C. Activities of the Code Authorities
Part D. Code Authority Finances
Part E. Summary and Evaluation
Cade Compliance Activities of the NRA
Code Making Program of the NRA in the Territories, The
Code Provisions and Related Subjects, Policy Statements Concerning
Content of NIRA Administrative Legislation
Part A. Executive and Administrative Orders
Part B. Labor Provisions in the Codes
Part C. Trade Practice Provisions in the Codes
Part D. Administrative Provisions in the Codes
Part E. Agreements under Sections 4(a) and 7(b)
Part F. A Type Case: The Cotton Textile Code
Labels Under NRA, A Study of
Model Code and Model Provisions for Codes, Development of
National Recovery Administration, The: A Review of its Organization and Activities
NRA Insignia
President's Reemployment Agreement. The
President's Roemployment Agreement, Substitutions in Connection with the
Prison Labor Problem under NRA and the Prison Compact. The
Problems of Administration in the Overlapping of Code Definitions of Iniustries and Trades,
Multiple Code Coverage, Classifying Individual Members of Industries and Trades
Relationship of NRA to Government Contracts and Contracts Involving the Use of Government
Funds
Relationship of NRA with States and Municipalities
Sheltered Workshops Under NRA
UVcodified Industries: A Study of Factors Limiting the Code Making Program

Leal Studies


Anti-Trust Laws and Unfair Competition
Collective Bargaining Agreements, the Right of Individual Employees to Enforce
Commerce Clause, Federal Regulation of the Employer-Employee Relationship Under the
Delegation of Power, Certain Ph.ases of the Prin.iple of. with Reference to Federal Industrial
Regulatory Legislation
Enforcement, Extra-Judicial Methods of
Federal Regulation through the Joint Employment of the Power of Taxation and the Spending
Power
Government Contract Provisions as a Means of Establishing Proper Economic Standards, Legal
Memorandum on Possibility of
Industrial Relations in Australia, Regulation of
Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com-
merce Clause, Cases on
Legislative Possibilities of the State Constitutions
Post Office and Post Road Power Can it be Used as a Means of Federal Industrial Regula-
tion?
State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis
Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in
Trade Practices and the Anti-Trust Laws
Treaty Making Power of the United States
SWar Power, Can it be Used as a Means of Federal Regulation of Child Labor?
9768-4.











THE EVIDENCE STUDIES SERIES


The Evidence Studies were originally undertaken to gather material for pending court
cases. After the Schechter decision the project was continued in order to assemble data for
use in connection with the studies of the Division of Review. The data are particularly
concerned with the nature, size and operations of the industry; and with the relation of the
industry to interstate commerce. The industries covered by the Evidence Studies account for
more than one-half of the total number of workers under codes. The list of those studies
follows:


Automobile Manufacturing Industry
Automotive Parts and Equipment Industry
Baking Industry
Boot and Shoe Manufacturing Industry
Bottled Soft Drink Industry
Builders' Supplies Industry
Canning Industry
Chemical Manufacturing Industry
Cigar Manufacturing Industry
Coat and Suit Industry
Construction Industry
Cotton Garment Industry
Dress Manufacturing Industry
Electrical Contracting Industry
Electrical Manufacturing Industry
Fabricated Metal Products Mfg. and Metal Fin-
ishing and Metal Coating Industry
Fishery Industry
Furniture Manufacturing Industry
General Contractors Industry
Graphic Arts Industry
Gray Iron Foundry Industry
Hosiery Industry
Infant's and Children's Wear Industry
Iron and Steel Industry


Leather Industry
Lumber and Timber Products Industry
Mason Contractors Industry
Men's Clothing Industry
Motion Picture Industry
Motor Vehicle Retailing Trade
Needlework Industry of Puerto Rico
Painting and Paperhanging Industry
Photo Engraving Industry
Plumbing Contracting Industry
Retail Lumber Industry
Retail Trade Industry
Retail Tire and Battery Trade Industry
Rubber Manufacturing Industry
Rubber Tire Manufacturing Industry
Shipbuilding Industry
Silk Textile Industry
Structural Clay Products Industry
Throwing Industry
Trucking Industry
Waste Materials Industry
Wholesale and Retail Food Industry
Wholesale Fresh Fruit and Vegetable Indus-
try
Wool Textile Industry


THE STATISTICAL MATERIALS SERIES


This series is supplementary to the Evidence Studies Series. The reports include data
on establishments, firms, employment, payrolls, wages, hours, production capacities, ship-
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports.
They also include notes on the principal qualifications that should be observed in using the
S data, the technical methods employed, and the applicability of the material to the study of
S the industries concerned. The following numbers appear in the series:
9768-5.









- vi -


Asphalt Shingle and Roofing Industry
Business Furniture
Candy Manufacturing Industry
Carpet and Rug Industry
Cement Industry
Cleaning and Dyeing Trade
Coffee Industry
Copper and Brass Mill Products Industry
Cotton Textile Industry
Electrical Manufacturing Industry


Fertilizer Industry
Funeral Supply Industry
Glass Container Industry
Ice Manufacturing Industry
Knitted Outerwear Industry
Paint, Varnish, ana Lacquer, Mfg. Industry
Plumbing Fixtures Industry
Rayon and Synthetic Yarn Producing Industry
Salt Producing Industry


THE COVERAGE

The original, and approved, plan of the Division of Review contemplated resources suf-
ficient (a) to prepare some 1200 histories of codes and NRA units or agencies, (b) to con-
solidate and index the NRA files containing some 40,000,000 pieces. (c) to engage in ex-
tensive field work, (d) to secure much aid from established statistical agencies of govern-
ment, (e) to assemble a considerable number of experts in various fields, (f) to conduct
approximately 25% more studies than are listed above, and (g) to prepare a comprehensive
summary report.

Because of reductions made in personnel and in use of outside experts, limitation of
access to field work and research agencies, and lack of jurisdiction over files, the pro-
jected plan was necessarily curtailed. The most serious curtailments were the omission of
the comprehensive summary report; the dropping of certain studies and the reduction in the
coverage of other studies; and the abandonment of the consolidation and indexing of the
files. Fortunately, there is reason to hope that the files may yet be careC for under other
auspices.

Notwithstanding these limitations, if the files are ultimately consolidated and in-
dexed the exploration of the NRA materials will have been sufficient to make them accessible
and highly useful. They constitute the largest and richest single body of information
concerning the problems and operations of industry ever assembled in any nation.

L. C. Marshall,
Director. Division of Review.
9768--6.




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