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Code of fair competition for the bituminous coal industry as approved by President Roosevelt in executive orders of September 18, 1933, and September 29, 1933, incorporating so far as possible the conditions of the executive orders in the text of the code

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Title:
Code of fair competition for the bituminous coal industry as approved by President Roosevelt in executive orders of September 18, 1933, and September 29, 1933, incorporating so far as possible the conditions of the executive orders in the text of the code
Portion of title:
Bituminous coal industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
xvii, 11 p. : ; 24 cm.

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Subjects / Keywords:
Bituminous coal industry -- Law and legislation -- United States ( lcsh )
Genre:
Federal Government Publication ( MARCTGM )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 702-45."

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Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
63654863 ( OCLC )
ocm63654863

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Full Text


Registry No. 702-45


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION
FOR THE

BITUMINOUS COAL INDUSTRY


AS APPROVED BY PRESIDENT ROOSEVELT
IN EXECUTIVE ORDERS OF SEPTEMBER 18, 1933, AND
SEPTEMBER 29, 1933, INCORPORATING SO FAR AS
POSSIBLE THE CONDITIONS OF THE EXECUTIVE
ORDERS IN THE TEXT OF THE CODE


UNIV. OF FL LII.


DOCUMENTS DETOY


U.S. DEPOMTORY


SDO OUR PART


Executive Order-September 18, 1933
Executive Order-September 29, 1933
Executive Order-September 29, 1933
Letter of Transmittal
Report of Deputy Administrator Simpson
Text of Code
Schedule A




UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


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


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This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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EXECUTIVE ORDER


CODE OF FAIR COMPETITION FOR THE BITUMINOUS COAL INDUSTRY
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Bituminous Coal Industry, and hearings
having been held thereon and the Administrator having rendered his
report containing an analysis of the said Code of Fair Competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said Code of Fair
Competition complies in all respects with the pertinent provisions of
Title I of said Act and that the requirements of clauses (1) and (2) of
subsection (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said Code of Fair
Competition be and is hereby approved, subject to the following
conditions:
(1) There shall be added to the first paragraph of Section 3 of
Article VII of the Code .the following sentence:
All coal producers subject to the Code shall furnish to any
government agency or agencies designated by the Adminis-
trator such statistical information as the Administrator may,
from time to time, deem necessary for the purposes recited in
Section 3 (a) of the National Industrial Recovery Act and
any reports and other information collected and compiled by
a Code Authority, as heretofore provided, shall be transmitted
to such government agencies, as the Administrator may direct.
(2) There shall be added after the first sentence of Section 4 of
Article VII the following sentence:
The President may appoint not more than three members of
the Industrial Board in addition to, or in substitution for one
or more of, the aforesaid six members of the Divisional Code
Authorities.
(3) Schedule A as attached to the Code recommended by the
Administrator is approved with the understanding that any basio
minimum rates not fixed therein may be approved or prescribed by
the President at any time prior to the effective date of this Code by a
supplementary Executive Order.
(4) Because it is evident that attempts by those submitting Codes
to interpret Section 7 (a) of the National Industrial Recovery Act
have led to confusion and misunderstanding, such interpretations
should not be incorporated in Codes of Fair Competition. Therefore,
paragraph (b) of Article V must be eliminated without, by this
(III)





IV

exclusion, indicating disapproval in any way of the joint statement of
the Administrator and General Counsel of the National Recovery
Administration, which has been attached to the Code as Schedule B
and was incorporated by reference in said paragraph (b) of Article V.
(5) The exception to the definition of "employee" in Article II
belongs in Article III. Accordingly, the words "except members of
the executive, supervisory, technical and confidential personnel"
are stricken from the third paragraph of Article II. These same
words are inserted in the first paragraph of Article III after the
words "no employee."
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
September 18, 1933.
Approval recommended:
HUGH S. JOHNSON,
Administrator.









EXECUTIVE ORDER


REVISED CODE OF FAIR COMPETITION FOR THE BITUMINOUS COAL
INDUSTRY
A Code of Fair Competition for the Bituminous Coal Industry was
approved by an Executive Order dated September 18, 1933, subject
to certain conditions, including a condition that basic minimum rates
not fixed in Schedule A, as attached to the Code, might be approved
or prescribed by the President at any time prior to the effective date
of the Code, which provision was also incorporated in the Code in
said Schedule A. Following said Executive Order of September 18th
further consideration has been given to said basic minimum rates and
said Schedule A has been revised so as to include additional rates,
either agreed upon and submitted for approval, or recommended as
those which should be prescribed by the President.
The associations and groups of coal producers and individual coal
producers submitting said Code for the approval of the President,
also authorized the Administrator to make such minor changes as
might be desirable to improve its language without substantially
altering the substance thereof.
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Recovery Act, approved June 16, 1933, and otherwise,
and upon the recommendation of the Administrator do order that-
(1) Schedule A, as revised and attached to this order, is hereby
approved as the schedule of basic minimum rates approved or pre-
scribed by the President and incorporated in the Code of Fair Com-
petition for the Bituminous Coal Industry, as provided in Article IV
of said Code.
(2) In order to correct a typographical error in the Code and in the
Executive Order of September 18th, in the two places where the
phrase "six members of the Divisional Code Authorities" occurs in
Article VII, Section 4, this shall be corrected to read "five members
of the Divisional Code Authorities."
(3) In order to provide for the impartial decision of any controversy
submitted to the National Bituminous Coal Labor Board there is
hereby imposed, as a condition upon the functioning of said Board,
that only the impartial and disinterested representatives of the Presi-
dent appointed to the Divisional Labor Boards shall participate in
the decisions of the National Bituminous Coal Labor Board, the other
members thereof acting only in an advisory capacity.
(4) Subject to the conditions of the Executive Order of September
18, 1933, and the modification thereof and other provisions of this
order, the Code of Fair Competition for the Bituminous Coal Industry
is hereby approved.
FRANKLIN D. ROOSEVELT.
SEPTEMBER 29, 1933.
Approval recommended:
HUGH S. JOHNSON,
Administrator.
























EXECUTIVE ORDER
In accordance with the provisions of the Code of Fair Competition
for the Bituminous Coal Industry heretofore approved, I hereby
appoint the Administrator, Hugh S. Johnson, to serve temporarily
as a member (without vote) of each Code Authority created as pro-
vided in Article VI, Section 2, of said Code, with the power in said
Administrator to designate an agent with full authority to act in his
behalf as a member (without vote) of any Divisional or Sub-Divi-
sional Code Authority thus created, reserving to myself the power to
appoint directly, in substitution for the temporary appointment of
the Administrator, a member of any such Divisional or Sub-Divi-
sional Code Authority.
FRANKLIN D. ROOSEVELT.
SEPTEMBER 29, 1933.
(VI)










SEPTEMBER 17, 1933.
General HUGH S. JOHNsON,
Administrator, National Recovery Admininistration,
Washington, D.C.
DEAR SIR: I present herewith for your consideration and recom-
mendation to the President the Code of Fair Competition for the
Bituminous Coal Industry.
Efforts were under way to secure the cooperation of the Bitumi-
nous Coal operators prior to and in anticipation of the passage of the
National Industrial Recovery Act.
The state of utter disorganization in the industry involving the
prevalence of unfair competitive practices, particularly in the pay-
ment of low wages in order to permit of unreasonably low coal prices,
furnished a good example of the effects of unrestrained competition
in an industry capable of great overproduction in relation to existing
consumer demands. In numerous ways the Bituminous Coal Indus-
try has furnished more convincing evidence of the need for the
integrating force of the National Industrial Recovery Act than any
other industry in the nation.
The initial and immediate activity of the Administrator and the
present writer after your appointment was an effort to bring about
a greater coordination and cooperation between the operators in the
different sections of the country in this industry and largely in re-
sponse to this effort there came into being the Northern Coal Control
Association and the Smokeless Appalachian Coal Association, repre-
senting almost all producers in the Appalachian coal area which pro-
duces approximately 70% of the national Bituminous coal tonnage.
These associations join in presenting a Code of Fair Competition,
this being a remarkable exhibition of cooperation among coal pro-
ducers who have been engaged for a generation in bitter competitive
operations. Other associations in various regions presented separate
Codes as did certain groups of individual producers thus offered to
the Administration the problem of harmonizing in some manner the
divergent views represented in some twenty-eight different Codes.
This industry also presented the unique problem of one in which
there was far-reaching organization of labor on an industrial basis,
The United Mine Workers of America having contracts with many
operators in many fields and claiming organization of workers in
many other fields where no contractual relations existed.
The difficulty of reconciling all the conflicting elements in this
situation can hardly be overemphasized. During the progress of
discussion following the public hearings representatives of the Appa-
lachian Associations requested the aid of the Administration in
facilitating the negotiation of a contract between these associations
and the United Mine Workers of America, and it was evident to the
Administration that this step having been taken a successful conclu-
sion to these negotiations was of the utmost importance in bringing
about the submission of a code for the industry as a whole.
In the detailed report which will be prepared for your consideration
all the steps taken and the problems involved will be given more
(VIJ





VIII


adequate consideration. At the present time in view of the urgent
need for the recommendation and approval of the code which was
finally adopted and submitted for approval on September 16 by rep-
resentatives of approximately 95 percent of the national tonnage, it
is desirable to make recommendations only as to the following minor
details:
1. There is a provision in Article VII, section 3, requiring each code
authority to collect and combine any report and other information
required under the National Industrial Recovery Act. This should
be supplemented by a definite obligation imposed upon the industry
to furnish to government agencies such statistical information as the
administrator may deem necessary for the purposes recited in Section
3-A of the National Industrial Recovery Act in the form of an
Executive Order to be recommended to the President. An appro-
priate provision will be drafted to cover these requirements.
2. In Article VII, Section 4, provision is made for establishing an
Industrial board to consist of nine members designated by the several
divisional code authorities and the six members of the divisional
authorities who have been appointed by the President. It appears
that the provision as written may unduly restrict the President in
placing on the Industrial Board only his appointees to the divisional
code authorities.
Accordingly, it is recommended that as a condition of approval
the President reserve the right to name not more than three mem-
bers either in substitution for, or in addition to the six presidential
appointees made members of the Industrial Board by the present
provision of Section 4, of Article VII.
3. Schedule A fixes basic minimum rates for various districts and
parts thereof leaving the rates for certain producing areas to be either
approved or prescribed by the President prior to the effective date of
the code. In view of progress made since the submission of the code
in determining those rates not fixed in schedule A as submitted, I am
able to recommend the revised Schedule A attached to this report,
and desire to make it plain that no rates as fixed in Schedule A as
submitted have been changed.
The code as recommended complies in all respects with the perti-
nent provisions of Title I of the Act. The groups submitting the
code impose no inequitable restrictions on admission to membership
therein and were truly representative of the Bituminous Industry.
The code as recommended is not designed to promote monopolies
or to eliminate or oppress small enterprises and will not operate to
discriminate against them, and will tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
From evidence adduced during the hearing and all available infor-
mation,' it is believed that this code as now proposed and revised
represents an effective, practical, equitable solution for this industry,
and its approval as herewith submitted is recommended.
Respectfully submitted.
K. M. SIMPSON,
Deputy Adminiistrator.
Approved:
HUGH S. JOHNSON,
Administrator.








SEPTEMBER 18, 1933.
General HUGH S. JOHNSON,
Administrator, National Recovery Administration,
Washington, D.C.
DEAR SIR:
I submit herewith my report on those aspects of the Bituminous
Coal Industry which affected the formulation of the Code of Fair
Competition for that Industry.
This report supplements my letter of transmittal of September
17, 1933.
Respectfully submitted.
K. M. SIMPSON,
Deputy Administrator.


18032--18S-53-33-2











SALIENT FACTS OF THE INDUSTRY


The Industry as defined in the Code includes all enterprises engaged
in the "production and original sale of all kinds of coal (except
anthracite), lignite, and the production and original sale of coke other
than byproduct coke." Purposely omitted from the scope of the
Code are anthracite and byproduct coke operations and the activities
of wholesaling and retailing which do not fall within the meaning of
"original sale", i.e., first sale after the stage of production.
The following statistics indicate the position of the industry in
recent years:

Statistical position of the bituminous coal industry

Year 1919 1926 1929 1930 1931 1932

Prodlic tion (net tons)'...... 4 r o. A F.73.3'.6, 9S5 534,98.50 467. 526. 299 3S2. 089, 39C 308, 370,000
Tot.l value f o.b. mines i.... tl,1ltU,1lh..013I 1, 13.412.000 ( 952,. 7.sI, 0(00 $'95, 4b3. U00 $llSS, 95, 000 $391, 630,000
Value per ton .............. $2 4 $2. $1.7 $1 70 $1.51 1.27
Number waee earners I...... r .21, 9'J 59.], 6,47 502, 993 493, 202 450, 213 398, 715
Nun brr w e eir er ..45, 7 ............. 45, ..........................-------------- -----,--.
Average number of days
mine, ,.p rated' I........... 19. 21 21 17 1 60 145
Total wages paid ........... $682. $ rn l, 0.. ..1 ............ 0. $574.....072...... -----....
Total wage- per worker '.... 250.6 ............. -------.25-3.02..-.....-........_-----. -- -. -
stlio waFes to value of
roducts.................. 81.......... 60.32 .......... ............----..----------- .......

I As reported h-,y Bureau of Mines.
SA, reportcee tI. BureJiu of hle Census
Based on number of wage earners reported by Bureau of the Census.
NOTE.-The number of men reported by the Bureau of Mines represent- the total of the number em-
ployed at indli\ dual mines whether operated for 20, 60, 100, 300, or other number of days during the year.
Thu', for a minen which oper.atd for n'jly part of nne inonth and was idle the remainder of the year, the
number of men employed for such time is include in the iotal for the year on the same basis as if the men
hall been eniply.,yc.-d throughout the year. T he number reported by the Bureau of 1 lines does not represent,
therefore, the aver pe em.jployment throughout the year, but rather the number employed in the year,
whether for the whole year or for only a short period
The averape number of wave earner- reported by the Bureau of the Census was obtained by totalling the
number employed on the 15th day of each month (or the nearest representative day) and dividing the result
by 12.

Unlike most industries, that of bituminous coal began to feel the
effects of economic maladjustment, in 1924. Since that time the
condition of the industry has become progressively worse, notwith-
standing the increasing tempo of most. industries up to the summer
of 1929. For the 30-year period ending in 1918, the average annual
increase in the production of bituminous coal was approximately
18,000,000 tons. During the period 1918-29 this trend of annual
increase disappeared. In only three years-1920, 1923, and 1926-
did production approach that for 1918. The average for the 5 years,
1916-1920, was 533,644,561 tons, for 1921-1925, was 481,298,798
tons, and for 1926-1930, was 518,878,039 tons. Output in 1931 was
382,089,396 tons, and in 1932, 308,970,000 tons.
Since 1920 the trend of mine realization for coal has been down-
ward. The average for the four years 1919-1922 was 3.08. For the
succeeding years the average realization was as follows:
1923------------ 2. 68 1927 ---------- 1. 99 1931------------ 1. 54
192------------ 2. 20 1928 ----------- 1.86 1932_ ---------- 1.27
1925------------ 2. 04 1929 --------- 1. 78
1926------------ 2.06 1930 ----------- 1.70
IS)







With the wage bill constituting 60-65 percent of the total cost of
production and wages practically the only flexible item in costs, the
result has been that the burden of declining prices has fallen in
greatest force on the wage earners. Thus, the coal industry was an
economic "sore-spot" for at least five years before the collapse in 1929.
Not only did labor suffer during all this period but many mining op-
erations were forced into receivership and reorganization and earnings
were far from adequate on the investment in the industry. In 1929,
a year of high production, corporations in the industry (as classified
by the Bureau of Internal Revenue) reported a net loss of $11,300,000.
The reported net loss for 1930 was $42,071,000. Similar data for
other years are not available.
The condition of the industry was particularly acute in 1931, 1932,
and the first five months in 1933. Beginning m June considerable
improvement in production has taken place and since the first of
July the output has exceeded that for the corresponding period in
1931, although still remaining considerably below normal and about
26.5 percent below the production during the corresponding period
in 1929.
EMPLOYMENT-HOURS AND WAGES
A full study of the hours and wages problems of the industry is
contained in the Report of the Division of Economic Research and
Planning, summary of which is given below:
The industry employed 503,000 wage earners in 1929, 399,000
in 1932, and approximately 294,000 in July 1933. The number em-
ployed in the industry has decreased greatly in recent years, falling
from a peak of 704,793 wage earners in 1924. However, the average
number of days worked per year by wage earners has been far from
adequate. In only three years since 1920 has the average working
time exceeded 200 days, and for the 12-year period the average has
been 180 days per year. The average working time per week for mines
in 1929 was 34 hours, with a minimum of 28.7 hours per week in June
and a maximum of 39.2 hours per week in February. In 1932, the
average working time was 22.8 hours per week, ranging from 15.7
hours in June to 28.9 hours in October. Therefore, the 40-hour week
provided in the Code should easily allow of a total production equal
to that for 1929, on the basis of mine capacity and workers available
in that year. However, 1929 output at particular mines could not be
equalled and for certain kinds of coal might not be possible of achieve-
ment under the 40-hour week. Estimated employment for the six-
month period-September 1933 to February 1934-based on the
assumption that 200,000,000 tons will be produced during that period,
would provide employment at a 36-hour per week average for 331,000
wage earners. On a 32-hour average, the number employed would be
approximately 372,000. The index of employment for the industry
indicates 295,000 employed in June 1933, averaging roughly 30 hours
per week and 294,000 in July, averaging approximately 36 hours per
week.
Reemployment in the coal industry is entirely dependent upon a
substantially increased demand for coal. With output at 308,000,000
tons in 1932, the average weekly working time was but 22.8 hours
and the average number of days worked was only 145. Therefore,
increase in working time for those employed may be expected to





XII


take place before reemployment, of greater numbers on any appre-
ciable scale. At the present time some mines are operating six days
per week; the reduction in working time of employees in these cases
will result in a shifting to other mines whose operating time is less
and to some extent, the employment of some additional men. How-
ever, the increase in numbers employed to be reasonably expected
cannot be appreciable in view of the limited number of days which
the mines have operated.
Wages constitute from 60 to 65 percent of the cost of producing
bituminous coal. Total wage-bill data for the bituminous-coal indus-
try are available only for the years covered by the decennial Census
of Mines and Quarries. The wage bill (including contract work) in
1919 was $685,457,034 and $576,689,699 in 1929. The pay roll of
1929 was 16 percent less than 1919, and the value of coal, f.o.b.
mine (out of which wages must be paid) showed a like decline. Thus,
in 1929, when the value added by manufactures as a whole exceeded
the 1919 level by 28.5 percent, the value of products on the bitu-
minous-coal industry dropped 16 percent in spite of an increase of
about 17 percent in production.
In addition to the decrease in working time afforded employees
during the depression, average hourly earnings have been declining
since 1924. The trend of hourly earnings for outside laborers, for
inside laborers, and for trackmen are shown in the following table
for the area east of the Mississippi River:
Average hourly earnings of skilled and unskilled occupational groups in important
coal fields 1 for specified periods, 1919 to 1933

Northern Southern Northern and
fields fields southern fields
combined
Year Period
Track- Outside Track- Outside Track- Outside
men laborers men laborers men laborers

1919 Jan.-May ------------ --------------$0.628 $0.529 $0. 510 $0.419 $0.585 0. 479
1921-22 Oct. 1-Feb. 15.------------------------.. .829 .669 '.69S 512 *. 7SI 601
1924 Oct.-Dec....------.------...... ------- --- .864 .718 .577 .430 .747 57
1926-27 Nov. 26-Mar. 22-.....-....-- ..........-...... .19 .669 .566 .433 t98 .539
1929 First quarter-----.... ..-- ..--- ----------- .699 .559 .550 .419 .62 ?4 .483
1931 First quarter .....-..----------- ...--- 651 .542 .622 .408 .589 .473
1933 First quarter-...---------. ------------- .479 .3S9 .365 .288 .422 .336

I Weighted by number of men employed in each field and average number of days mines were operated.
Illinois, Indiana, Ohio, and Pennsylvania.
I Kentucky, Tennessee, Virginia, Alabama, and West Virginia.
SDoes not include Tennessee and Virginia.

For the purpose of determining minimum rates of wages, it has
been necessary to consider the competitive relationships of the many
producing districts in different coal-consuming markets. Such treat-
ment is in accord with the historic development of the industry,
which has been determined by the necessities of competition based on
quality of coal, freight rates, the labor market and other factors.
The relative importance of each of these factors varies from field to
field. Moreover, the importance of each factor is difficult to measure.
As far as practicable, however, the number of districts has been
kept to a minimum and the spread in rates has been reduced to the
narrowest limits possible and still promote competitive equilibrium.
Rates submitted in the numerous codes proposed by operators showed






XIII


wide variations, both as to the minimum wages and the differentials
between different competing areas. It would be utterly impossible
to reconcile all the conflicting rates proposed by the different interests
involved. The effort has been to arrive at a set of rates which
would result in the least economic dislocation and at the same time
carry out the purposes of the N.I.R.A.-employment and increased
purchasing power.
No data are available from which may be determined with accuracy
the magnitude of differentials which should exist between competing
districts. However, such data as are available have been carefully
analyzed before approval of any rate (except where rates were fixed
by contract). For the most part, the differentials in rates of pay
represent agreements arrived at by representatives of different geo-
graphical divisions within the industry as being fair and equitable, and
approved by the N.R.A. The reasonableness of the rates and differ-
entials can only be determined after the Code has been in operation
and the results reviewed. Such review is provided for in the Code,
which requires that a study be made under the direction of the
Administrator before December 31, 1933; and that the provisions of
the Code be reviewed in the light of developments during the first!
three months of operation at meetings to be held beginning January
5, 1934.
The Code provides minimum rates for two classes of labor, namely,
outside common labor and inside skilled labor (basic minimum).
The Code further provides that "other classifications of employment
will maintain their customary differentials above or below said basic
minimum rates and that payments for work performed on a tonnage
or other piecework basis will maintain their customary relationship
to the payments on a time basis provided in said basic minimum
rates." The rates established by the Code represent substantial
increases over the rates prevailing earlier in the year for all fields
except for those fields under union contract. The weighted average
increase in hourly rates for skilled employees for the area east of the
Mississippi River is 13 cents, or 30.8 percent over the average rate
which prevailed in February 1933; that for outside common labor is
9.3 cents, or 27.7 percent higher. Increases for certain individual
states or districts are considerably higher than the average, while
those for Illinois, Indiana, and areas under contract west of the
Mississippi remain unchanged.
On the other hand, practically all the rates are lower than those in
effect in 1929. For the area east of the Mississippi River, the weighted
average of inside skilled labor rates established by the Code is 7.2
cents, or 11.5 percent lower than those prevailing in 1929, while outside
common labor rates average 5.4 cents, or 11.2 percent under 1929.
Although the hourly rates compare favorably with those established
in other codes, the earning possibilities under the Code are adversely
affected by the characteristically short working week afforded by the
industry. For the full 40-hour week prescribed by the Code, the
average earnings for inside skilled labor (basic wage) would be $22.08
and for outside common labor would be $17.16.
The rates established by the Code with corresponding rates pre-
vailing in the first quarter of 1933 and 1929 are shown in the following
tables.








XIV


Hourly wage rales established by approved code compared with those prevailing in
February 1933 and first quarter, 1929. In Statcs east of the Mississippi River


Field


Pennsylvania.. -----------.............................
Central........................------------...
Western -- -------................................
Ohio__-------- ---------------
Ohio and Pennsylvania------------.......................
Michigan.----------------
Panhandle, W.Va......-------...... --------.........
Northern West Virginia .-----------..................
Smokeless and Appalachian:
Southern West Virginia------.......... --........
Eastern Kentucky--- ------------ --------
Virginia __--.....-..................--------
Northern Tennessee-......------.... ----.....--..
Upper Potomac, W.Va------. ---........... -----.
Maryland-------------..............................
Indiana ------------------------------------ -
Illinoisa ............................................
Illinois------------------ ------
Western Kentucky----------------...........................
Alabama--- --....-------................. -----------..
Georgia..----.................
Tennessee (Hamilton and Rhea)-- -- --
Southern Tennessee---- ---------------- ---

Weighted average,3 north of Ohio River.......-------.
Weighted average,a south of Ohio River--------...........

Weighted average,3 east of Mississippi River----......


Approved rate


Inside
skilled
labor-
ers


Out-
side
labor-
ers


Bureau of
Labor. Febru-
ary 1933


II-I I- [I


$0. 575 $0.450
........ ........

.575 .450
575 .450
.575 .450
.575 .450
.645 .420

.525 .400
.525 .400
.525 .400
.525 .400
.525 .400
.525 .400
.572 .525
.625 .500
.500 .375
.425 .300
.425 .300
.425 .300
.480 .375

.585 .470
.518 .393

.552 .429


1 Includes Panhandle and upper Potomac districts.
Entire State.
Weighted by number of men employed in each field and average number of days mines were operated.

Hourly wage rates established by the approved code compared with union contract
rates in effect in 1933 and 1929 in States west of the Mississippi River


Field


Iowa (Wayne & Appanoose)....--.---..--
Iowa (except Wayne & Appanoose)----
Missouri_ --------
Kansas....--..... .-----------. --
Arkansas.--..--........------. ---.......
Oklahoma ........-----...................
New Mexico ..-------...------...... --..
Southern Colorado---------.......-------.
Northern Colorado------------ ------
Utah.........--------.........
Southern Wyoming.......................
Northern Wyoming ......................
Montana--------.. .............---
Washington..............................
North Dakota.....------................
South Dakota --.......----------.......


$0.57

.468%
.46%
.466
.56
S555
.625
.68
.67%4
.67-4
.70)1,
.675
.50
.50


$0.48H4
.50
.41
.41
.41
.41
.46%
.46%
.46%9
.56
.555
.5694
.60M
.50
.40
.40


'$0. 469
469
469
'. 469
..........

(4)

677
.677
.725
.675
..---..----
.---------


$0.50
1. 409
409
'. 3S9
2. 3E9
------y----
(4)

.550
.56%4
.603
.500
.. .. 5


$0. 725
.625
633/



.875

.84
.84
.899
.844
---- 8 ---


$0. 044
0.645
.545
........--
---.-.--.-
..........
5645



.569

.736
.74%
.80
.625
----------


Bureau of
Labor, first
quarter, 1929


Track-
men


Out-
side
labor-
era


Track-
men


$0 441
.455
.433
.392
.434


1.350


.890
.8381
2.335


577
.623
.343
.303



.479
.365

.422


Out-
side
labor-
ers


$0. 496
.520
.481
.532
.501

1.482

.449
.444
.354
3.337

.694
.700
.422
.272



.559
.419

.483


$0.325
.342
.315
.343
.328

1.283

.307
.293
.260
255


.528
.494
.287
196



.389
.287

.336


.0. 6S6
.689

.626
.677

1.586

.573
.577
.487
2.440


.760
.762
.625
.459



.699
.550

.624


I Exclusive of Randolph. Macon, and Adair Counties. Contract of Southwestern Interstate Coal
Operators' Association, and Ray and Clay Counties Operators' Association.
SCherokee and Crawford Counties.
I Contract of Arkansas-Oklahoma Coal Operators' Association.
Rocky Mountain Fuel Co.'s rate is $0.6563 for trackmen and $0.50 for outside labor.










CHILD LABOR
No person under seventeen (17) years of age shall be employed
inside any mine or in hazardous occupations outside any nune,
provided, however, that where a state law provides a higher minimum
age, the state law shall govern; no person under the age of sixteen (16)
shall be employed in or about a mine.
MAXIMUM HOURS FOR ALL EMPLOYEES
Not over 40 hours per week during any part of the year.
Exceptions.-(a) Employees required because of accidents which
temporarily necessitate longer hours for them; (b) supervisors,
clerks, technicians, and that small number of employees at each mine
whose daily work includes the handling of man trips and/or haulage
animals and coal in transit and those who are required to remain on
duty while men are entering and leaving the mine.
Provision is made in the Code for an investigation for the purpose
of reporting on or before December 31, 1933, upon the practicability
and cost (assuming the maintenance of existing rates of pay) of
applying to bituminous coal mining a shorter work day and work
week.
The Code makes provision for sharing of available employment
upon the expressed desire of the employees, and adjusted by mutual
agreement between employed workers and their employers.

PRICE PROVISIONS
Article VI of the Code requires that coal must be sold at a fair
market price, i.e., a price necessary to carry out the purposes of the
N.I.R.A., to pay the minimum rates of wages established, and to
furnish employment for labor. Minimum prices are to be established
by selling agencies, truly representative of two thirds of the commer-
cial tonnage of any coal district or group of districts, all prices being
subject to the approval of the Administrator.
The provision that prices shall be published and made subject to
review and approval of the Administrator should reduce materially
uneconomic and destructive competition among the various fields.
Through this control the Administrator may do much to establish
proper equilibrium among the producing fields and promote the de-
velopment of markets which are related geographically and economi-
cally to the producing centers. Much of the long and wasteful
"cross-hauling" of coal should be eliminated by the establishment of
proper price differentials.
The pricing and marketing provisions of the Code are expected to
relieve the industry of much of the cutthroat competition that has
existed and obviate the dumping of coal at ruinous prices, which has
demoralized markets, and resulted in mine realizations for coal inad-
equate to provide decent levels of wages. It affords a means by which
wage earners in the industry need not bear the burden of inadequate
prices and makes possible a degree of stabilization never heretofore
achieved in the industry.
The Code provides public representation on the National Bitumi-
nous Coal Industrial Board to assist and advise the Administrator in





XVI


all matters relating to the operation of the Code and its effect upon
the consumers' interests.
ADMINISTRATION
The Code provides for maximum degree of autonomy within the
five Divisions established. Each Division shall be administered by a
Code Authority, composed of members truly representative of the
producers within the area, and one member, without vote, appointed
by the President.
The Presidential members of the Divisional Code Authorities shall
constitute the National Bituminous Coal Industrial Board. (The Pres-
ident may appoin t not more than three members of the Indust rial Boa rd
in addition to, or in substitution for one or more of, the aforesaid mem-
bers of the Divisional Code Authorities.) The National Board shall
advise and assist the Administrator in the administration of the Code.
For the settlement of labor disputes, there is provided in the Code
for the establishment of a Bituminous Coal Labor Board in each
Division. (Except there shall be two Boards for Division No. 1.)
The members of the six Bituminous Coal Labor Boards shall constitute
the National Bituminous Coal Labor Board. The duties of the
Board shall be to administer labor matters and disputes for the indus-
try which fall outside the province of the District Boards or which,
the District Boards have been unable to handle or compose; however
in order to provide for the impartial decision of any controversy
submitted to the National Bituminous Coal Labor Board there is
imposed, as a condition upon the functioning of said Board, that only
the impartial and disinterested representatives of the President
appointed to the Divisional Labor Boards shall participate in the
decisions of the National Bituminous Coal Labor Board, the other
members thereof acting only in an advisory capacity.
All activities, decisions, and promulgations of authority of the
several administrative agencies provided for in the Code are subject
to the review and approval, or veto, of the Administrator for the
Industry.
In addition, the Administrator is empowered to (1) prescribe rules
and regulations to prevent unfair deductions in wages, (2) investi-
gate, through a designated agency, wages, hours, and other elements
of the Code, (3) direct Presidential members of Code Authorities,
(4) review and approve or veto market prices proposed by sales
agencies established under the Code, (5) prescribe the furnishing of
statistics to government agencies, (6) convene National Bituminous
Coal Labor Board when necessary, (7) recommend for approval of
President proposed amendments to the Code by any Code Authority,
and such other duties expressed in the Code.
FINDINGS
I have found that-
(a) The Code complies with the pertinent provisions of Title I,
National Industrial Recovery Act, including, without limitation,
subsection (a) of Sec. 7, and subsection (b) of Sec. 10 thereof.
(b) The several Code Authorities established under the Code are
truly representative of their respective districts and impose no
inequitable restrictions upon admissions to membership.





xvII

(c) The Code, as submitted and amended, imposes necessary con-
ditions for the protection of consumers, producers, and employees,
will not permit monopolies or monopolistic practices, or eliminate or
oppress small enterprises, and will not operate to discriminate against
them.
(d) The Code has been approved by the Labor Advisory Board, the
Industrial Advisory Board, and the Consumers' Advisory Board.
I have, therefore, recommended approval of the Code, as submitted,
to be effective until April 1, 1934, as provided in Article XI thereof.
Respectfully submitted.
K. M. SIMPSON,
Deputy Administrator.















CODE OF FAIR COMPETITION FOR THE BITUMINOUS
COAL INDUSTRY
ARTICLE I-PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the bituminous-coal industry and upon approval
by the President shall be the standards of fair competition for this
Industry.
ARTICLE II-DEFINITIONS
As used in this Code the term "Industry" as applied to the
Bituminous Coal Industry means the production and original sale
of all kinds of coal (except anthracite), lignite, and the production
and original sale of coke other than byproduct coke.
The term "employer" includes any person employing labor in
any phase of the industry.
The term "employee" includes all persons employed in the
industry.
The term "Administrator" means the official designated by the
President to administer the National Industrial Recovery Act.
ARTICLE III-MAAXIMUM HOURS OF LABOR
No employee, except members of the executive, supervisory,
technical, and confidential personnel, shall be employed in excess of
40 hours in any calendar week after the effective date of this Code.
No employee shall be required or permitted to work more than
eight hours in any one day at the usual working places or otherwise
in or about the mine (exclusive of lunch period), whether paid by
the hour or on a tonnage or other piecework basis.
There shall be excepted from the foregoing limitations (a) em-
ployees required because of accidents which temporarily necessitate
longer hours for them; (b) supervisors, clerks, technicians and that
small number of employees at each mine whose daily work includes
the handling of man-trips and/or haulage animals and coal in transit
and those who are required to remain on duty while men are entering
and leaving the mine.
The foregoing maximum hours of work shall not be construed as a
minimum; and if at any mine a majority of the employed workers
express their desire, by written request to the employer, to share
available work with bona fide unemployed workers of the same mine,
the number of hours' work may be adjusted accordingly by mutual
agreement between such employed workers and their employers.

ARTICLE IV-MINIMUM RATES OF PAY
The basic minimum rate for inside skilled labor and the basic
minimum rate for outside common labor shall be the rate hereinafter
(1)







set forth in Schedule "A" for each district therein described for each
such classification of labor, with the understanding that other classi-
fications of employment will maintain their customary differentials
above or below said basic minimum rates and that payments for work
performed on a tonnage or other piecework basis will maintain
their customary relationship to the payments on a time basis provided
in said basic minimum rates.
ARTICLE V-CONDITIONS OF EMPLOYMENT
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection; (2) no
employee and no one seeking employment shall be required as a
condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing; and (3) employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
(b) Except as otherwise hereinafter provided, all coal mined on a
tonnage basis shall be weighed and the miner paid on the basis of 2,000
or 2,240 pound ton. The miners shall have the right to a check-
weighman, of their own choosing, to inspect the weighing of coal:
Provided, that where mines are not now equipped to weigh coal a
reasonable time may be allowed to so equip such mines; and pro-
vided, that in any case where rates of pay are based on any other
method than on actual weights, the miners shall have the right to
check the accuracy and fairness of the application of such methods,
by representatives of their own choosing.
(c) The net amount of wages due shall be paid semimonthly in
lawful money or par check at the option of operators. Any deductions
from employees' pay, if not a matter of agreement, shall be in con-
formity with such general rules and regulations as the Administrator
may prescribe for the purpose of preventing unfair deductions, or
those which may in effect lower the rates of pay herein provided.
(d) Employees other than maintenance or supervisory men or
those necessary to protect the property shall not be required as a
condition of employment to live in homes rented from the employer.
(e) No employee shall be required as a condition of employment
to trade at the store of the employer.
(f) No person under seventeen (17) years of age shall be employed
inside any mine or in hazardous occupations outside any mine, pro-
vided, however, that where a state law provides a higher minimum
age, the state law shall govern; no person under the age of sixteen (16)
shall be employed in or about a mine.
(g) As soon as possible after the adoption of this Code, the Na-
tional Recovery Administration shall undertake, through a designated
committee or agency, an investigation for the purpose of reporting on
or before December 31, 1933; upon (a) the practicability and cost
(assuming the maintenance of existing rates of pay) of applying to
bituminous coal mining a shorter work day and work week; (b) the







effect of an advisability of revising wage differentials in the various
divisions and districts of the industry and in the event of recommended
change specification of the amount thereof; (c) the sales obtained for
coal, or reasonably to be anticipated, up to the time of the report, for
the purpose of determining whether wages and employment can be
further increased or maintained without imposing undue burdens
upon the industry.
On January 5, 1934, there shall be held a conference between rep-
resentatives of employers and employees operating under this Code,
together with representatives of the National Recovery Admin-
istration, for the purpose of determining what, if any, revisions may
be desirable at that time of the wages, hours, and differentials, or any
other requirements of this Code, on the basis of conditions then
existing and the report of representatives of the National Recovery
Administration made as hereinbefore provided.
Unless revised by mutual agreement, as the result of said confer-
ence beginning January 5, 1934, the hours of work, minimum rates
of pay, and wage differentials as set forth in this Code shall continue
in effect until April 1, 1934.

ARTICLE VI-UNFAIR PRACTICES
SECTION 1. The selling of coal under a fair market price (necessary
to carry out the purposes of the National Industrial Recovery Act,
to pay the minimum rates herein established, and to furnish employ-
ment for labor) is hereby declared to be an unfair competitive prac-
tice and in violation of this Code. In order to determine the fair
market price, agencies shall be established, as hereinafter provided,
and sales of coal at any tine at a price less than a fair market price
determined and published, as hereinafter provided, shall create
against any person selling at a lower price a prima facie presumption
that such a person is engaged in destructive price cutting and unfair
competition. It shall be proper in determining such fair market
price to take into consideration, in addition to the matters above set
forth, also competition with other coals, fuels, and forms of energy
or heat production.
SEC. 2. The fair market prices of coal of any grade and character
referred to in the next preceding section, subject to the power of
review hereinafter stated shall be-
(a) The minimum prices for the various grades and sizes in the
various consuming markets which may be established for future
application by a marketing agency or by marketing agencies, of
whatever form or howsoever constituted, now existing or hereafter
created or organized, acting for coal producers truly representative
of at least two thirds of the commercial tonnage of any coal district
or group of districts, such minimum prices to be effective when and as
announced as provided in Section 4 hereof.
(b) The minimum prices for the various grades and sizes in the
various consuming markets, where no such marketing agency exists,
which may be established for future application by the respective
Code Authorities hereinafter set up, for their respective areas, after
having given consideration to the various conditions and circum-
stances entering into the sale of each grade and class of commercial
coal produced in the district or group of districts it represents, such







minimum prices to be effective n hen announced as provided in Section
4 hereof.
(c) As a basis for determining the fair market price to be announced
and published, as provided in the two preceding clauses, the Code
Authorities shall utilize the Classifications of coals made by such
agencies as are referred to in clause (a) of this section, and shall
classify the coals in said districts not sold by such agencies and also
the coals in the districts referred to in clause (b) of this section, to
which the various prices apply. Said Code Authorities shall, at all
times, provide and keep open an office during business hours to which
any coal producer in said districts and any representative of the
Administrator may apply for information with respect to said classifi-
cations and prices.
(d) The term "marketing agency" or "agency" as used in this
Article shall include any trade association of coal producers com-
plying with the requirements of a marketing agency and exercising
the functions thereof.
SEC. 3. The fair market prices established for future application
under the provisions of Section 2 (a) shall be reported to said Code
Authorities by any such marketing agencies in such manner as may
be required by such Authorities.
SEC. 4. The fair market price of bituminous coal, established as
aforesaid by such agencies and Code Authorities shall be published
within fifteen days after the effective date of this Code, after approval
by the Presidential Member of the Code Authority (acting under the
direction of the Administrator), who in his approval may permit a
reduction or increase in said prices by action of said agencies or
Authorities within the limits which he may prescribe, and thereafter
shall be published whenever any change is made therein, and not
less frequently than one each month, and on the first of the month.
Simultaneously with such publication, said fair market prices of
bituminous coal shall be transmitted by the Code Authorities to the
National Recovery Administrator for his further review and subse-
quent action.
SEC. 5. Both the records and the data of such marketing agencies
and of said Code Authorities shall be open to inspection and investi-
gation by any agent of the Administrator whom he shall appoint for
that purpose. Should such an agent of the Administrator disapprove
of any changes proposedin any fair market prices from those previously
approved by the Administrator as being m excess of any reductions
or increases allowed in such approval, such changes shall not be made
effective unless and until the Administrator shall approve them.
SEC. 6. The consignment of unordered coal, or the forwarding of
coal which has not actually been sold, consigned to the producer or
his agent, is a violation of this code; provided, however, that coal
which has not actually been sold may be forwarded, consigned to the
producer or his agent at rail or truck yards, tidewater ports, river
ports, or lake ports, and/or docks beyond such ports, but such
consignments shall be limited to cover:
(a) Bunker coal;
(b) Coal applicable against existing contracts;
(o) Coal for storage (other than in railroad cars) by the
producer or his agent in rail or truck yards or on docks,
wharves, or other yards for resale by the producer or his
agent.





5

SEC. 7. The adjustment of claims with purchasers of coal in such
manner as to grant secret allowances, secret rebates, or secret con-
cessions creates price discrimination and is a violation of this Code.
SEC. 8. The prepayment of freight charges with intent or with the
effect of granting a discriminatory credit allowance is a violation of
this Code.
SEC. 9. The giving in any form of adjustments, allowances, dis-
counts, credits, or refunds to purchasers or sellers of coal, for the
purpose or with the effect of altering retroactively a price previously
agreed upon in such manner as to create price discrimination is a
violation of this Code.
SEC. 10. The predating or the postdating of any invoice or con-
tract for the purchase or sale of coal, except to conform to a bona fide
agreement for the purchase or sale entered into on the predate is a
violation of this Code.
SEC. 11. Terms of sale shall be strictly adhered to; and the pay-
ment or allowance of rebates, refunds, credits, or unearned discounts,
whether in the form of money or otherwise, or extending to certain
purchasers services or privileges not extended to all purchasers under
like terms and conditions, is a violation of this Code.
SEC. 12. An attempt to purchase business, or obtain information
concerning a competitor's business by gifts or bribes, is a violation of
this Code.
SEC. 13. The intentional misrepresentation of analysis and/or
sizes or the intentional making, causing or permitting to be made, or
publishing, of any false, untrue, misleading, or deceptive, statement,
by way of advertising, invoice, or otherwise, concerning the size,
quality, character, nature, preparation or origin of any coal, bought
or sold, is a violation of this Code.
SEC. 14. The unauthorized use, either in written or oral form, of
trade marks, trade names, slogans, or advertising matter already
adopted by a competitor, or deceptive approximation thereof, is a
violation of this Code.
SEC. 15. Inducing or attempting to induce, by any means or device
whatsoever, a breach of contract between a competitor and his cus-
tomer during the term of such contract, is a violation of this Code.
SEC. 16. Nothing in the foregoing sections of this Article shall
prevent any American producer from creating special prices for over-
seas exports.
SEC. 17. The splitting or dividing of commissions, brokers fees,
or brokerage discounts, or otherwise in any manner through sham or
indirection the use of brokerage commission or jobbers arrangements
or sales agency for making discounts, allowances, or rebates, or prices
other than those determined as provided in this Code, to any indus-
trial consumer or to any retailer, or to others, shall be a violation of
this Code.
SEC. 18. To sell to, or through, any broker, jobber, commission
account, or sales agency, which is in fact an agent for an organization
of retailers or industrial consumers, whereby they secure indirectly
a discount, dividend, allowance or rebates, or a price other than that
determined as provided in this Code shall be a violation of this Code.







ARTICLE VII-ADMINISTRATION
SECTION 1. For the purposes of Administration of this Code, the
Bituminous Coal Industry is hereby divided into five divisions as
follows:
Division No. I.-Pennsylvania, Ohio, Lower Peninsula of Michigan,
Maryland, West Virginia, Kentucky, Northern Tennessee, (including
all counties not included within Division No. III), Virginia and
North Carolina.
Division No. II.-Iowa, Indiana, and Illinois.
Division No. III.-Alabama Southern Tennessee, (including
Marion, Grundy, Sequatchie, White, Hamilton, Bledsoe and Rhea
Counties), and Georgia.
Division No. IV.-Missouri, Kansas, Arkansas, Oklahoma, and
Texas.
Division No. V.-New Mexico, Colorado, Utah, Wyoming, North
Dakota, South Dakota, Montana, Idaho, Washington, Oregon, Cali-
fornia, Nevada and Arizona.
In each of the foregoing five divisions, subdivisions may be estab-
lished, as hereinafter provided.
SEC. 2. Divisional Code Authorities.-For each of the foregoing
divisions there shallbe established within ten days after the effective
date hereof, or within such further time as may be permitted by the
Administrator, a Divisional Code Authority, or Subdivisional Code
Authorities for the administration of this Code within such division,
either for the division as a unit, or for subdivisions thereof, respectively,
as may be determined. All the members of a Code Authority, except
one (without vote and to be appointed by the President) shall be
selected by an association or associations, or a committee of coal
producers within the division or subdivision which shall be truly
representative of the industry therein and impose no inequitable
restrictions on admission to membership. A full report of any such
action taken to establish a Code Authority shall be made to the
Administrator and shall become effective upon approval by him. A
subdivision shall consist of a geographical area within which all coal
producers shall be entitled to membership in the association or com-
mittee establishing the Code Authority. The Administrator shall
have power to limit the number of subdivisions within a division and
to determine any controversy arising in the establishment of such a
Code Authority, and his decision shall be conclusive as to compliance
with the requirements of this Section and of the National Industrial
Recovery Act in the initial establishment of such a Code Authority.
In the event that Subdivisional Code Authorities are established
within a division, such Subdivisional Code Authorities shall establish
a Divisional Code Authority to exercise the functions hereinafter
provided for a Divisional Code Authority and any other functions
which may be conferred upon the Divisional Code Authority by the
Subdivisional Code Authorities, all in conformity with any rules
and regulations prescribed by the Administrator. One member of a
Divisional Code Authority, without vote, shall be appointed by the
President.
A Code Authority shall administer this Code in its Division or
Subdivision and shall have the duties and exercise the powers which
are conferred ITon it in Lhis article and in Article VI of this Code, and







shall have authority to adopt appropriate by-laws, rules and regula-
tions for the exercise of its functions.
Marketing agencies or trade associations may be established or
maintained within any division or subdivision by a voluntary associa-
tion of producers within any producing district therein, as such district
may be defined by the Code Authority and function under such
general rules and regulations as may be prescribed by the Code
Authority, with the approval of the Administrator, for the purpose of
preventing any unfair practices, as defined in Article VI of this Code.
SEC. 3. Each Code Authority shall collect and compile any reports
and other information required under the National Industrial Re-
covery Act; and in investigations of any complaint of unfair practices
the Presidential member of a Code Authority shall have power to
require reports from, and shall be given access to inspect the books
and records of producers within the jurisdiction of such Code Author-
ity to the extent he may deem necessary for the determination of the
validity of the complaint. All coal producers subject to the Code
shall furnish to any government agency or agencies designated by the
Administrator such statistical information as the Administrator may,
from time to time, deem necessary for the purposes recited in Section
3 (a) of the National Industrial Recovery Act; and any reports and
other information collected and compiled by a Code Authority, as
heretofore provided, shall be transmitted to such government agencies,
as the Administrator may direct.
The expense of administering this Code by a Divisional (or Sub-
divisional) Code Authority shall be borne by those subject to such
Code Authority, each paying his proportionate share, as assessed,
computed on a tonnage basis, in accordance with regulations pre-
scribed by the Code Authority with the approval of the Administrator.
SEC. 4. Industrial Board.-There shall be established within ten
days after the creation of the Divisional Code Authorities a National
Bituminous Coal Industrial Board, consisting of four members desig-
nated by the Divisional Code Authority of Division No. I, two mem-
bers designated by the Divisional Code Authority of Division No. II,
one member each designated by the Divisional Code Authorities of
Divisions No. III, IV, and V and the five members of the Divisional
Code Authorities who have been appointed by the President. The
President may appoint not more than three members of the Industrial
Board in addition to, or in substitution for one or more of, the afore-
said five members of the Divisional Code Authorities. This Board
shall have the duties and exercise the powers conferred upon it in
this Code, or any revisions thereof and particularly shall meet from
time to time at the call of the Administrator, who shall be ex officio
Chairman thereof, to consider and to make recommendations to the
Divisional Code Authorities and to the President as to any amend-
ments of this Code, or other measures which may stabilize and im-
prove the conditions of the industry and promote the public interest
therein.
SEC. 5. Labor Relations.-(a) Any controversy concerning hours,
wages, and conditions of employment, or compliance with the provi-
sions of Article V of this Code, between employers and employees
who are organized or associated for collective action shall, if possible,
be adjusted by conference and negotiation between duly designated
representatives of employers and such employees, meeting either in a







mine conference or district conference or divisional conference, as the
machinery for such conference may be established by agreement of the
parties thereto; and it shall be the duty of employers and employees
to exert every reasonable effort to establish such a machinery of
adjustment and to utilize it to negotiate to a conclusion such contro-
versies wherever possible.
(b) Any such controversy which cannot be settled in the manner
so provided and which threatens to interrupt, or has interrupted, or is
impairing the efficient operation of any mine or mines to such an
extent as to restrain interstate commerce in the products thereof,
shall be referred to the appropriate Bituminous Coal Labor Board,
established as hereinafter provided, and the decision of said Board
shall be accepted by the parties to the controversy as effective for a
provisional period of not longer than six months, to be fixed by the
Board.
(c) During the consideration of any such controversy either by the
agreed machinery of adjustment, or by the Bituminous Coal Labor
Board, neither party to the controversy shall change the conditions
out of which the controversy arose, or utilize any coercive or retaila-
tory measures to compel the other party to accede to its demands.
(d) If any such controversy shall involve or depend upon the deter-
mination of who are the representatives of the employees chosen as
provided in Section 7(a) of the National Industrial Recovery Act, the
appropriate Bituminous Coal Labor Board, through any agent or
agency it may select, shall have the power to determine the questions
by an investigation and, if necessary, by a secret ballot taken under
its direction.
(e) A Bituminous Coal Labor Board shall be appointed by the
President for each Division, except there shall be two Boards for
Division No. I, to exercise the powers herein conferred upon it, which
shall consist of three members, one to be selected from nominations
submitted by organizations of employees within such Division, one
to be selected from nominations by the Divisional Code Authority
and one who shall be wholly impartial and disinterested representative
of the President. The expenses of such board shall be met by equal
contributions from the employers and employees nomina ting members,
the amount and method of collecting which shall be determined by
regulations prescribed by the President.
(f) There shall be a National Bituminous Coal Labor Board com-
posed of the members of the six divisional labor boards which may be
convened upon call of the Administrator in the event that-
1. A controversy involves employers and employees of more than
one division, or
2. The decision of a divisional labor board affects operating con-
ditions of more than one division either directly or because of its
effect upon competitive marketing, or
3. In the opinion of the Administrator the decision of a divisional
labor board involves the application of a policy affecting the general
public, or the welfare of the industry as a whole.
The National Bituminous Coal Labor Board may exercise all the
powers conferred upon a divisional labor board, either in giving
original consideration to a controversy, or in reviewing the decision
of a divisional labor board, which may be either affirmed, set aside
and/or modified.







A ARTICLE VII-SAFETY
Employers and employees shall cooperate in maintninin safe
conditions of ope:;ation in compliance with the applicable requirements
of State laws or regulations in conformity therewith.
ARTICLE IX-AMENDM ENTS
Any Code Authority may propose amendmr-nts to this Code from
time to time effective generally or as to the area within its juris-
diction which, after submission to any other Code Authority affected
thereby (which shall include the divisional Code Authority in case of
an amendment proposed by a subdivisional Code Authority), may
be recommended by the Administrator for the approval of the
President.
ARTICLE X
This Code and all the provisions thereof are expressly made subject
to the right of the President, in accordance with the provision of
subsection (b) of Section 10 of the National Industrial Recovery
Act, from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act and specifi-
cally, but without limitations, to the right of the President to cancel
or modify his approval of this Code or any conditions imposed by
him upon his approval thereof.

ARTICLE XI-EFFECTIVE DATE AND TERMINATION
This Code shall become effective on the second Monday following
its approval by the President, and shall continue in effect until April
1, 1934, and thereafter in the absence of the exercise of the power
reserved to the President. in Article X, subject to the exercise of the
option, after 30 days' notice to the Administrator, by any coal producer
to withdraw his consent after April 1, 1934, to the further enforcement
of the Code as a Code to which he has voluntarily given his consent.











SCHEDULE A

BASIC MINIMUM RATES


Minimum inside Minimum outside
skilled labor common labor
District
Dollars Cents Dollars Cents
per day per hour per day per hour

DISTRICT A
Pennsylvania.....--------------.--....-----------... .--..----. 4.60 57% 3.60 45
Ohio ...----......... ....-----..---------- 4.60 57% 3.60 45
Lower Peninsula of Michigan. ----- ----------- 4.60 57% 3.60 45
Panhandle District of West Virginia I---.---. --.-----....------. 4.60 57% 3.60 45
DISTRICT B
Northern West Virginia 2-------------------------------------- 4.36 54% 3.36 42
DISTRICT C
Southern West Virginia s--------------------------------- ----- 4.20 52% 3.20 40
Eastern Kentucky ---------------------...--------------------- 4.20 523 3.20 40
Upper Potomac District of West Virginia s----... .--------.. ---. 4.20 52 3.20 40
Maryland.--.................. .. ....-------------------- 4.20 52 3.20 40
Virginia---...........---------. -------------------------- 4.20 52% 3.20 40
Northern Tennessee -----------........--------------------.. 4.20 52 3.20 40
DISTRICT D
Indiana-..-----...... ---------------------- 4. 57% 57g 4.20 52%)
DISTRICT E
Illinois.......------------------------------------------ 5.00 62% 4.00 50
DISTRICT F
Iowa '-..................--------------------.. 4. 70 58% 4.00 50
Wayne and Appanoose Counties of Iowa -----........ ----... 4.56 57 3.86 48)4
DISTRICT G
Missouri, Kansas, Arkansas, and Oklahoma..-------.... ---.... 3.75 463 3.28 41
DISTRICT H
Western Kentucky 8s..-------.......... .-------------------- 4.00 50 3.00 37%
DISTRICT I
Alabama......--------............-------------------.--. 3.40 42% 2.40 30
Georgia -------......----------......... ----------------- 3.40 42 2.40 30
Hamilton and Rhea Counties of Tennessee----.... -----------.. 3.40 42% 2.40 30
DISTRICT G-l
Marion, Grundy, Sequatchie, White, Van Buren, Warren, and
Bledsoe Counties of Tennessee..----------.. ----------------- 3.84 48 2.84 351
DISTRICT K
New Mexico .-----.............. ---------.-------------. 4.48 66 3.75 463
Southern Colorado ------------............------------- ----. 4.44 55% 3.75 46%
DISTRICT L
Northern Colorado0 o____ ____ _______----------- ----------------5.00 62% 3. 7 46%
1 Includes Hancock, Brooke, Ohio, and Marshall Counties.
I Includes Monongalia, Preston, Marion, Harrison, Taylor, Lewis, Barbour, Gilmer, Upshur, Ran-
dolph, Braxton, and Webster Counties and those mines in Nicholas County served by the B. & O. R.R.
3 Includes all mines in counties of West Virginia not named under districts A and B and under the
Upper Potomac District.
Includes all mines in Kentucky located east of a north and south line drawn along the Western bound-
ary of the City of Louisville.
6 Includes Grant, Mineral, and Tucker Counties.
6 Includes all counties in Tennessee not named Districts J and J-1.
7 Excludes Wayne and Appanoose Counties.
8 Includes all mines in Kentucky west of a north and south line drawn along the western boundary of
the City of Louisville.
9 Includes all counties in Colorado not named under District L.
10 Includes Jackson, Larimer, Weld, Boulder, Adams, Arapahoe, El Paso, Douglas, Elbert, and Jeffer
son Counties.
NOTE.-Differences between districts in the foregoing minimum rates are not to be considered as fixing
permanent wage differentials or establishing precedents for future wage scales.
(10)







11


BASIC MINIMUM RATES-Continued


Minimum inside Minimum outside
skilled labor common labor
District
Dollars Cents Dollars Cents
per day per hour per day per hour

DISTRICT M
Utah .....------------------------------- 5. 44 68 4.48 56
DISTRICT N
Southern Wyoming--------------------------- 5.42 673 4.44 556
Northern Wyoming---------------------------- 5.42 67. 4.54 56
DISTRICT O
Montana --------------------------------- 5.63 709 4.82 6034
DISTRICT P
Washington--------- ---....---------------------------- 5.40 67H 4.00 50
DISTRICT Q
North Dakota------.. ---------.------------------ 4.00 50 8.20 40
South Dakota...........---------------------------------- 4.00 50 3.20 40





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Registry No . 702-45 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE BITUMINOUS COAL INDUSTRY AS APPROVED BY PRESIDENT ROOSEVELT IN EXECUTIVE ORDERS OF SEPTEMBER 18, 1933, AND SEPTEMBER 29, 1933, INCORPORATING SO FAR AS POSSIBLE THE CONDITIONS OF THE EXECUTIVE ORDERS IN THE TEXT OF THE CODE v .... -s 1. Executive Order-September 18, 1933 2. Executive Order-September 29, 1933 3. Executive Order-September 29, 1933 4. Letter of Transmittal 5. Report of Deputy Administrator Simpson 6. Text of Code 7. Schedule A UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1933 For sale by the Superintendent of Documents, Washington, D.C. -Price 5 cents

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This publication is for sale by the Superintendent of Documents, Government Printing Offic e, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala.: 257 Federal Building. Boston, Mass.: 1 801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex.: Chamber of Commerce Buikl.ing. Detroit, Mich.: 2213 First National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, Ind.: Chamber of Commerce Building. Jackso nville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadway. Louisvill e , Ky.: 408 Federal Building. Memphis, Tenn.: 229 Federal Building. Minneapolis, Minn.: 213 Federal Building. New Orleans, La.: Room 22 5 -A, Customhouse. New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa.: 933 Commercial Trust Building. Pittsburgh, Pa.: Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. St. Louis, Mo.: 506 Olive Street. San Francisco, Calif.: 310 Customhouse. Seattle, Wash.: 809 Federal Building. (II)

PAGE 3

EXECUTIVE ORDER CODE OF FAIR COMPETITION FOR THE BITUMINOUS COAL INDUSTRY An application having been dul y made, pursuant to and in full compliance with the pro v isions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for my approval of a Code of Fair Competition for the Bituminous Coal Industry, and hea rings having been held thereon and the Administrator having rendered his report containing an analysis of the said Code of Fair Competition together with his recommend ations and findings wit h re spect thereto, and the Administrator having found that the said Code of Fair Competition complies in all re spects with the pertinent provisions of Title I of said Act and that the requirements of clauses (1) and (2) of subsection (a) of Section 3 of the said Act have been met: NOW, THEREFORE, I Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in me by Title I of the National Industrial Recovery Act, approved June 16, 1933, and otherwise, do adopt and approve the report, recommendations and findings of the Administrator and do order that the said Code of Fair Competition be and is hereby approved, subject to the following conditions: (1) There shall be added to the first paragraph of Section 3 of Article VII of the Code -the following sentence: All coal producers subject to the Code shall furnish to any government agency or agencies designated by the Administrator such statistical information as the Administrator may, from time to time, deem necessary for the purposes recited in Section 3 (a) of the National Industr i a l Recovery Act and any r eports and other information collected and compiled by a Code Authority, as here tofo re provided, shall be transmitted to such government agencies, as the Administrator may direct. (2) There shall be added after the first sentence of Section 4 of Article VII the following se ntence: The President may appoint not more than three members of the Industrial Board in addition to, or in substitution for one or more of, the aforesaid six members of the Divi s ional Code Authorities. (3) Schedule A as attached to the Code recommended by the Administrator is approved with the understanding that any basio minimum rates not fixed therein may be approved or prescribed by the President at any time prior to the effective date of this Code by a. supplementary Executive Order. (4) Because it is evident that attempts by those submitting Codes to interpret Section 7 (a) of the National Industrial Recovery Act have led to confusion and misunderstanding, such interpretations should not be incorporated in Codes of Fair Competition. Therefo re, paragraph (b) of Article V must be eliminated without, by this (III)

PAGE 4

IV exclusion, indicating disapproval in any way of the joint statement of the Admin istrator and General Counsel of the National Recovery Adn1inistration, which h as been attached to the Code as Schedule B and was incorporated by reference in said paragraph (b) of Article V. (5) The exception to the definition of "employee" in Article II belongs in Article III. Acc ordingly, the words "except m e mbers of the executive, supervisory, technical and confidential personnel" are stricken from the third paragraph of Article II. These same words are inser t ed in the first paragraph of Article III after the words "no employee." FRANKLIN D. ROOSEVELT. THE WHITE HousE, September 18, 1933. Approval recommended: HUGH S. JOHNSON, Administrator.

PAGE 5

EXECUTIVE ORDER REVISED CODE OF FAIR COMPETITION FOR THE BITUMINOUS COAL INDUSTRY A Code of Fn.ir Competition for the Bituminous Coal Industry was approved by an Executive Ord e r dated Septen1ber 18, 1933, subject to certain conditions, including a condition that basic minimum rates not fixed in Schedule A, as attached to the Code, might be approved or prescribed by the President at any time prior to the effective date of the Code, which provi s ion was also incorporated in the Code in said Schedule A. Follo,;,ving s:1id Executive Order of September 18th further consideration has been given to said basic minimurn _ rates and said Schedule A has been r evi3ed so as to include additional rates, either agreed upon and submitted for approval, or recommended as those which should be pres c ribed by the Presid en t. The associations and groups of coal producers and individual coal producers submitting said Code for the approval of the President, also authorized the Administrator to make such minor changes as might be desirable to improve its language without substantially altering the substance thereof. NOW, THEREFORE, I, Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in me by Title I of the National Recovery Act, approved June 16, 1933, and otherwise, and upon the recommendation of the Administrator do order tbat-(1) Schedule A, as revised and attached to this order, is hereby approved as the schedule of basic minimum rates approved or pre scribed by the President and incorporated in the Code of Fair Competition for the Bituminous Coal Industry, as provided in Article IV of said Code. (2) In order to correct a typographical error in the Code and in the Executive Order of September 18th, in the two places where the phrase "six members of the Divisional Code Authorities" occurs in Article VII, Section 4, this shall be corrected to read "five members of the Divisional Code Authorities." (3) In order to provide for the impartial decision of any controvers7 submitted to the National Bitummous Coal Labor Board there 1s hereby imposed, as a condition upon the functioning of said Board, that only the impartial and disinterested representatives of the President appointed to the Divisional Labor Boards shall participate in the decisions of the National Bituminous Coal L abo r Board, the other members thereof acting only in an advisory capacity. (4) Subject to the conditions of the Executive Order of September 18, 1933, and the modification thereof and other provisions of this order, the Code of Fair Competition for the Bituminous Coal Industry is hereby approved. FRANKLIN D. ROOSEVELT. SEPTEMBER 29, 1933. Approval recommended: HUGH S. JOHNSON, Administrator. (V)

PAGE 6

EXECUTIVE ORDER In accordance with the provisions of the Code o f Fair Competition for the B i tuminous Coal Industry heretofore approved, I hereby appoint the Administrator, Hugh S. Johnson, to serve temporarily as a member (without vote) of each Code Authority created as pro vid ed in Article VI, Section 2, of said Code, with the power in said Admin istrator to designate an agent with full authority to act in his behalf as a rn.embe r (without vote) of any Divisional or Sub-Divi sion al Code Authority thus created, res er ving to myself the power to appoint directly, in substitution for the temporary appointment of the Administrator, a member of any such Divisional or Sub-Divi sional Code Authority. FRANKLIN D. ROOSEVELT. SEPTEMBER 29, 1933. (VI)

PAGE 7

General HUGH S. JOHNSON, SEPTEMBER 17, 1933. Administrator, 1 \/ational Reco very Administration, TVashington, D.O. DEAR SrR: I present herewith for your consideration and recommendation to the President the Code of F air Competition for the Bitununous Coal Industry. Efforts were under way to secure the cooperation of the Bituminous Coal operators prior to and in anticipation of the passage of the National Industrial Recovery Act. The state of utter disorganization in the industry involving the prevalence of unfair competitive practices, particularly in the payment of low wa,ges in order to permit of unreasonably low coal prices, furnished a good example of the effects of unrestrained competition in an industry capable of great overproduction in relation to existing consumer demands. In numerous ways the Bituminous Coal Industry has furnished more convincing ev id ence of the need for the integrating force of the National Industrial Recovery Act than any other industry in the nation. The initial and immediate activity of the Administrator and the present writer after your appointment was an effort to bring about a greater coordination and cooperation betv.-een the operators in the different sections of the country in this industry and l a rgely in re sponse to this effort there came into being the Northern Coal Control Association and the Smokeless Appalachian Coal Association, repre senting almost all producers in the Appalachian coal area which pro duces approximately 70% of the national Bituminous coal tonnage. These associations join in presenting a Code of Fair Competition, this being a remarkable exhibition of cooperation among coal pro ducers who have been engaged for a generation in bitter competitive operations. Other associations in various regions presented separate Codes as did certain groups of individual producers thus offered to the Administration the problem of harmonizing in some manner the diver gent views repre sen ted in some twenty-eight different Codes. This industry also presented the unique problem of one in which there was far-reaching org an ization of labor on an industrial b asis, The United Mine Workers of America having contracts with many operators in many fields and claiming organization of worke rs in many other fields where no contractual relations existed. The difficulty of reconciling all the conflicting elements in this situation can hardly be overemphasized. During the progr ess of discussion following the public hearings repres entatives of the Appa lachian Associations requested the aid of the Administration in facilitating the negotiation of a contract between these associations and the United Mine Workers of America, and it was evident to the Administration that this step having been taken a successful conclu sion to these negotiations was of the utmost in1portance in bringing about the submission of a code for the industry as a whole. In the detailed report which will be prepared for your consideration ail the steps taken and the problems involved will be given more (Vil)

PAGE 8

VIII adequate consideration. At the present time in view of the urgent ned for the recommendation and approval of the code which was finally adopted and submitted for approval on September 16 by rep resentatives of approximately 95 percent of the national tonnage, it is desirable to make recommendations only as to the following minor details: 1. There is a provision in Article VII, section 3, requiring each code authority to collect and combine any report and other information required under the National Industrial Recovery Act. This should be supplemented by a definite obligation imposed upon the industry to furnish to government agencies such statistical information as the administrator may deem necessary for the purposes recited in Section 3-A of the National Industrial Recovery Act in the form of an Executive Order to be recommended to the President. An appropriate provision will be drafted to cover these requirements. 2. In Article VII, Section 4, provision is made for establishing an Industrial board to consist of nine members designated by the several divisional code authorities and the six members of the divisional authorities who have been appointed by the President. It appears that the provision as written may unduly restrict the President in placing on the Industrial Board only his appointees to the divisional code authorities. Accordingly, it is recommended that as a condition of approval the President reserve the right to name not more than three mem bers either in substitution for, or in addition to the six presidential appointees made members of the Industrial Board by the present provision of Section 4, of Article VII. 3. Schedule A fixes basic minimum rates for various districts and parts thereof leaving the rates for certain producing areas to be either approved or prescribed by th~ President prior to the effective date of the code. In view of progress made since the submission of the code in determining those rates not fixed in schedule A as submitted, I am able to recommend the revised Schedule A attached to this report, and desire to make it plain that no rates as fixed in Schedule A as submitted have been changed. The code as recommended complies in all respects with the pertinent provisions of Title I of the Act. The groups submitting the code impose no inequitable restrictions on admission to membership therein and were truly representative of the Bituminous Industry. The code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate against them, and will tend to effectuate the policy of Title I of the National Industrial Recovery Act. From evidence adduced during the hearrng an.d all available information, it is believed that this code as now proposed and revised represents an effective, practical, equitable solution for this industry, and its approval as herewith submitted is recommended. Respectfully submitted. Approved: HUGHS. JOHNSON, Administrator. K. M. SIMPSON, Deputy Administrator.

PAGE 9

IX. SEPTEMBER 18, 1933. General HuGH S. JOHNSON, Administrator, Nat i onal Recovery Adminis trat ion , Washington, D.O. DEAR SrR: I submit herewith my report on those aspects of the Bituminous Coal Industry which affected the formulation of the Code of Fair Competition for that Industry. This report supplements my letter of transmittal of September 17, 1933. Respectfully submitted. K. M. SIMPSON, Deputy Administrator. 18032-183-53-33-2

PAGE 10

SALIENT FACTS OF THE INDUSTRY The Industry as defined in the Code includes all enterprises engaged in the "production and original sale of all kinds of coal (except anthracite), lignite, and the production and original sale of coke other than byproduct coke." Purposely omitted from the scope of the Code are anthracite and byproduct coke operations and the activities of wholesaling and retailing which do not fall within the meaning of "origina l sale", i.e., first sale after the stage of production. The following statistics indicate the position of the industry in recent years: Statistical position of the bituminous coal industry Year 1919 1926 1929 1930 1931 1932 -Production (net tons)1 ______ 465,860,058 573,366,985 534,988,593 467,526,299 382,089,396 308,370,000 Total value f.o. b. mines 1 ____ $1,160,6 16,013 $1,183,412,000 $952,781,000 $795,483,000 $588,895,000 $391,630,000 Value per ton 1 ______________ $2.49 $2.06 $1. 78 $1. 70 $1. 54 1. 27 Number wage earners t ______ 621,998 593, t\47 502,993 493,202 450,213 398,715 Number wage earner s 2 ______ 545, 798 -------------458 ,732 -----------------------------------A verage number of days mines operated i ___________ 195 215 219 187 160 145 Total wages paid 2 __________ $682,601,068 -------------$574,800,072 ------------------------------------Total wages per worker a ____ $1,250.65 -------------$1,253.02 ------------------------------------Ratio wages to value of products __________________ 58.81 -------------60.32 ----------------------------------1 As reported by Bureau of Mines. 2 As reported by Bureau of the Census. a Based on number of wage earners r eported by Burea u of the Census. NoTE.-The number of men reported by the Bureau of Mines represents the total of the number employed at individual mines whether operated for 20, 50, 100, 300, or other number of days during the year. Thus, for a mine whi ch operated for only a part of one month and was idle the remainder of the year, the number of men employed for such time is included in the t,otal for the yea r on the same basis as if the men had been employed throughou t the year . The number reported by the Bureau o f Mines does not represent, therefore, the average employment throughout the yea r, but rather the number employed in the year, whether for the whole year or f or only a short period. The average number of wage earners reported by th Bureau of the Census was obtained by totalling the number employed on the 15th day of each month (or the nearest representative day) and dividing the result by 12. Unlike most industries, that of bituminous coal began to feel the effects of economic maladjustment in 1924. Since that time the condition of the industry has become progressively worse, notwithstanding the increasing tempo of most industries up to the summer of 1929. For the 30-year period ending in 1918, the average annual increase in the production of bituminous coal was approximately 18,000,000 tons. During the period 1918-29 this trend of annual increase disappeared. In only three years-1920, 1923, and 1926-did production approach that for 1918. The average for the 5 years, 1916 1920, was 533,644,561 tons, for 1921-1925, was 481,298,798 tons, and for 1926-1930, was 518,878,039 tons. Output in 1931 was 382,089,396 tons, and in 1932, 308,970,000 tons. Since 1920 the trend of mine realization for coal has been down ward. The average for the four years 1919-1922 was 3.08. For the succeeding years the average realization was as follows: 1923 _ _ _ _ _ _ _ _ _ _ _ _ 2. 68 1927 _ _ _ _ _ _ _ _ _ _ _ _ 1. 99 193 L _ _ _ _ _ _ _ _ _ _ _ 1. 54 1924-_ _ _ _ _ _ _ _ _ _ _ 2. 20 1928 _ _ _ _ _ _ _ _ _ _ _ _ 1. 86 1932 _ _ _ _ _ _ _ _ _ _ _ _ 1. 27 1925 ____________ 2. 04 1929 ____________ 1. 78 1926____________ 2. 06 I 1930____________ 1. 70 (X)

PAGE 11

XI With the wage bill constituting 60-65 percent of the total cost of production and wages practically the only flexible item in costs, the result has been that the burden of declining prices has fallen in greatest force on the wage earners. Thus, the coal industry was an economic "sore-spot" for at least five years before the collapse in 1929. Not only did labor suffer during all this period but many mining op erations were forced into receivership and reorganization and earnings were far from adequate on the investment in the industry. In 1929, a year of high production, corporations in the industry (as classified by the Bureau of Internal Revenue) reported a net loss of $11,300,000. The reported net loss for 1930 wa . s $42,071,000. Similar data for other years are not available. The condition of the industry was particularly acute in 1931, 1932, and the first five months in 1933. Beginning in June considerable improvement in production has taken place and since the first of July the output has exceeded that for the corresponding period in 1931, although still remaining considerably below normal and about 26.5 percent below the production during the corresponding period in 1929. EMPLOYMENT--HOURS AND w AGES A full study of the hours and wages problems of the industry is contained in the Report of the Division of Economic Research and Planning, summary of which is given below: The industry employed 503,000 wage earners in 1929, 399,000 in 1932, and approximately 294,000 in July 1933. The number em ployed in the industry has decreased greatly in recent years, falling from a peak of 704,793 wage earners in 1924. However, the average number of days worked per year by wage earners has been far from adequate. In only three years since 1920 has the average working time exceeded 200 days, and for the 12-year period the average has been 180 days per year. The average working time per week for mines in 1929 was 34 hours, with a minimum of 28.7 hours per week in June and a maximum of 39.2 hours per week in February. In 1932, the average working time was 22.8 hours per week, ranging from 15.7 hours in June to 28.9 hours in October. Therefore, the 40-hour week provided in the Code should easily allow of a total production equal to that for 1929, on the basis of mine capacity and workers available in that year. However, 1929 output at particular mines could not be equalled and for certain kinds of coal might not be po s sible of achievement under the 40-hour week. Estimated employment for the sixmonth period-September 1933 to February 1934-based on the assumption that 200,000,000 tons will be produced during that period, would provide employment at a 36-hour per week average for 331,000 wage earners. On a 32-hour average, the number employed would be approximately 372,000. The index of employment for the industry indicates 295,000 employed in June 1933, averaging roughly 30 hours pBr week and 294,000 in July, averaging approximately 36 hours per week. Reemployment in the coal industry is entirely dependent upon a substantially increased demand for coal. With output at 308,000,000 tons in 1932, the average weekly working time was but 22.8 hours and the average number of days worked was only 145. Therefore, increase in working time for those employed may be expected to

PAGE 12

XII take place before reemployment of g reat e r numbers on any appre ciabl e sca le. At the present time some mines are operating six days per w eek; the reduction in working time of employees in these cases will result in a shifting to other mines whose operating time is less and to s ome extent, the employment of some additional men. How ever, the increase in numbers employed to be reasonably expected cannot be appreciable in view of the limited number of days which the mines have operated. Wages constitute from 60 to 65 percent of the cost of producing bituminous c oal. Total wage-bill data for the bituminous-coal industry are avail a ble only for the years covered by the decennial Census of l\fines and Quarries . The wage bill (including contract work) in 1919 was $685,457,034 and $576,689,699 in 1929. The pay roll of 192 9 was 16 p ercent less than 1919, and the value of coal, f.o.b. mine (out of which wages must be paid) showed a like decline. Thus, in 1929, when the value added by manufactures as a whole exceeded the 1919 level by 28.5 percent, the value of products on the bituminous-coal industry dropped 16 percent in spite of an increase of about 17 percent in production. In addition to the decrease in working time afforded eniployees during the depression, average hourly earnings have been declining since 1924. The trend of hourly earnings for outside laborers, for inside laborers, and for trackmen are shown in the following table for the area east of the Mississippi River: Average hourly earnings of skilled and unskilled occupational groups in important coal field s 1 for specified periods, 1919 to 1933 Northern Southern Northern and fields 2 fields 3 southern fields combined Year Peri o d Track-, Outside Track-Outside Track-Outside men laborers men laborers men laborers 1919 Jan.-May ______ ----------------------------$0.628 $0.529 $0. 510 $0.419 $0.585 $0.479 1921-22 Oct. 1-Fe b. 15 ______________________________ . 829 . 669 j . 698 j . 512 1 • 7 8 1 j . 601 192 4 Oct.-Dec ___________________________________ . 864 . 718 . 577 . 430 . 747 . 576 1926-27 Nov . 26-Ma r . 22 ____________________________ . 819 . 669 . 666 . 433 . 698 . 539 1929 Firs t quarter _______________________________ . 699 . 559 . 550 . 419 . 624 . 483 1931 Firs t quarte r _______________________________ . 651 . 542 . 522 .408 . 689 . 473 1933 First quarter _______________________________ . 479 . 389 . 365 . 288 . 422 . 336 1 Weighte d by number of men employed in each field and average number of days mines were operated. 2 Illinois, India n a , Ohio, and P ennsylvania . 1 K entucky, T enne ss ee , Vir ginia , Alabama, and West Virginia. i Does n o t includ e T ennes s e e a n d Vir ginia . For the purpose of determining minimum rates of wages, it has been nece ssary to consider the competitive relationships of the many producing districts in different coal-consuming markets. Such treatment is in accord with the historic development of the industry, which h a s be e n determined by the necessities of competition based on quality of coal, freight rates, the labor market and other factors. The rel a tive importance of each of these factors varies from field to field. Moreove r, the importa nce of each factor is difficult to measure. As f a r a s prac tic a ble, how e ver, the number of districts has been kept t o a minimum and the spread in rate s has been r e duced to the narrowes t li mits po s sible and still promote competitive equilibrium. Rates submitted in the numerous codes proposed by operators showed

PAGE 13

XIII wide variations, both as to the minimum wages and the differentials between different competing areas. It would be utterly impossible to reconcile all the conflicting rates proposed by the different interests involved. The effort has been to arrive at a set of rates which would result in the least economic dislocation and at the same time carry out the purposes of the N.I.R.A.-employment and increased purchasing power. No data are available from which may be determined with accuracy the magnitude of differentials which should exist between competing districts. However, such data as are available have been carefully analyzed before approval of any rate (except where rates were fixed by contract). For the most part, the differentials in rates of pay represent agreemen ts arrived at by representatives of different geo graphical divisions within the industry as being fair and equitable, and approved by the N.R.A. The reasonableness of the rates and differ e nt.ials can only be determined after the Code has been in operation and the results reviewed. Such review is provided for in the Code, which requires that a study be made under the direction of the Administrator before December 31, 1933; and that the provisions of the Code be reviewed in the light of developments during the first1 three months of operation at meetings to be held beginning January 5, 1934. The Code provides minimum rates for two classes of labor, namely, outside common labor and inside skilled labor (basic minimum). ' The Code further provides that "other classifications of employment 1 will maintain their customary differentials above or below said basic minimum rates and that payments for work performed on a tonnage or other piecework basis will maintain their customary relationship to the payments on a time basis provided in said basic minimum rates." The rates established by the Code represent substantial• increases over the rates prevailing earlier in the year for all fields except for those fields under union contract. The weighted average increase in hourly rates for skilled employees for the area east of the Mississippi River is 13 cents, or 30.8 percent over the average rate which prevailed in February 1933; that for outside common labor is 9.3 cents, or 27.7 percent higher. Increases for certain individual states or districts are considerably higher than the average, while those for Illinois, Indiana, and areas under contract west of the Mississippi remain unchanged. On the other hand, practically all the rates are lower than those in effect in 1929. For the area east of the Mississippi River, the weighted average of inside skilled labor rates established by the Code is 7 .2 cents, or 11.5 percent lower than those prevailing in 1929, while outside common labor rates average 5.4 cents, or 11.2 percent under 1929. Although the hourly rates compare favorably with those established in other codes, the earning possibilities under the Code are adversely affected by the characteristically short working week afforded by the industry. For the full 40-hour week prescribed by the Code, the average earnings for inside skilled labor (basic wage) would be $22.08 and for outside common labor would be $17.16. The rates established by the Code with corresponding rates pre vailing in the first quarter of 1933 and 1929 are shown in the following tables.

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XIV Hourly wage rates established by approved code compared with those prevailing in February 1933 and first quarter, 19 2 9. In States east of th e Mississippi River Bureau of Bure a u of Approved r ate L abor, FebruL abor, first ary 1933 quarter, 1929 Field Inside OutOutOut• skilled side Trackside Track side l a borl abor-men l abor-men labor• ers ers ers ers ---Pennsyl van ia ________________________ : ________________ $0. 575 $0. 450 $0 .441 $0.325 $0.686 $0.496 Cen traL ______________________________________________ _ -_______ _ . 455 . 342 . 689 .520 Western ______ ___ ________ _________________________________________ _ . 433 . 315 .684 .481 Ohio _________________________________________________ _ Ohio and Pennsylvania_------------------------------Michigan ____________________________________________ _ Panhandle, W. Va _________ ----------------------------Northern West Virginia ___ ----------------------------Smokeless and Appal achian: Southern West Virginia __________________________ _ Eastern Kentucky ____ ----------------------------Virginia __________________________________________ _ N ortbern Tennessee ______________________________ _ Upper Potomac, W.Va ___________________________ _ Maryland ________________________________________ _ Indiana ______________________________________________ _ Illinois _____________________ _ _ ________________________ _ Western Kentucky ___________________________________ _ Alabama _____________________________________________ _ Geor gia ______________________________________________ _ Tennessee (Hamilton and Rlrea) _____________________ _ Southern Tennessee ______________________ ____________ _ • 575 . 575 . 575 . 675 . 645 . 525 . 525 • 525 . 525 . 525 . 625 . 672 . 625 . 600 . 425 . 425 . 425 .480 Weighted average,3 north of Ohio River_______________ . 6 85 Weighted average,3 south of Ohio River_______________ . 518 Weighted average,3 east of Mississippi River__________ . 552 1 Includes Panhandle and upper Potomac districts. 2 Entire State. . 450 . 450 . 450 . 4 6 0 .420 .400 . 400 .400 .400 . 400 .400 . 625 . 600 . 375 . 300 .300 .300 . 375 . 470 . 393 .429 . 392 . 434 ---------------I . 3 5 0 . 381 . 390 . 338 2 . 335 ----------------• 677 . 623 . 343 . 303 . 479 . 365 . 422 . 343 .328 ----------------1 . 283 . 307 . 293 . 260 2 . 255 -----------. 528 .494 . 287 .196 . 389 . 287 . 336 . 626 . 677 ----------------I. 586 . 573 . 577 . 487 2 . 440 --------------. 760 . 762 . 525 . 459 . 699 . 550 . 624 • 632 . 601 ----------------I. 482 .449 . 444 . 354 2 . 337 ----------------.694 . 700 .422 • 272 • 659 .419 .483 1 Weighted by number of men employed in each field and average number of days mines were operated. Hourly wage rates established by the approved cod e compared with union contract rates in effect in 1933 and 1929 in States west of the Mississippi River Field Iowa (Wayne & Appanoose) _____________ _ Io':Va (ex_cept Wayne & Appanoose) ______ _ M1ssour1 _________________________________ _ Kansas ___________________________________ _ Arkansas ________ _________________________ _ 0 klahoma ________________________________ _ New Mexico _____________________________ _ Southern Colorado _______________________ _ Northern Colorado _______________________ _ Utah _____________________________________ _ Southern Wyoming _____________________ _ _ Northern Wyoming ______________________ _ Montana _________________________________ _ Was hington ______________________________ _ North Dakota ____________________________ _ South Dakota ____________________________ _ Approved rate Union contract rate, 1933 Union contract rate, 1929 i----------1---------1-----,-----Ins ide skill ed labor $0.67 . 58J4 .46 .46 .46 .46 . 66 . 655 . 625 . 68 .67 .67 . 70 . 675 . 50 . 50 Outs ide laborers $0. 48 . 50 . 41 .41 . 41 . 41 .46 .46 .46 . 66 . 555 .56 .60 . 50 . 40 .40 Track men Outside common labor Trackmen Outside common labor ---------------} $0. 725 $0 . 64 ----------$0. 50 I $0. 460 I , 409 , 625 • 645 2 • 469 2_ 409 . 63 . 545 3 • 460 3 • 3 8 9 __________ ----------a. 469 a. 389 ___________________ _ . 677 .677 . 725 . 675 . 550 .56 .603 .500 . 84 .84 . 899 . 844 . 569 . 736 . 74 .80 . 625 1 Exclusive of Randolph, Macon, and Adair Counties. Contra ct of Southwestern Interstate Coal Operato r s' Association, and Ray and C lay Counties Operato rs' Association. 2 Cherokee and Crawford Counties. 1 Contract of Arkansas-Okl a homa Coa l Operato rs ' Association. • Rocky Mountain F uel Co.'s rate is $0.6563 for trackmen and $0.50 for outside labor.

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xv CHILD LABOR No person under seventeen (17) years of age shall be employed inside any mine or in hazardous occupations outside any mine, provided, however, that where a state law provides a higher minimum age, the state law shall govern; no person under the age of sixteen (16) shall be employed in or about a mine. MAXIMUM HOURS FOR ALL EMPLOYEES Not over 40 hours per week: during any part o f the year. Exceptions.-(a) Employees required because of accidents which temporarily necessitate longer hours for them; (b) supervisors, clerks, technicians, and that small number of employees at each mine whose daily work includes the handling of man trips and/or haulage animals and coal in transit and those who are required to remain on duty while men are entering and leaving the mine. Provision is made in the Code for an investigation for the purpose of reporting on or before December 31, 1933, upon the practicability and cost (assuming the maintenance of existing rntes of pay) of applying to bituminous coal mining a shorter work: day and work week. The Code makes provision for sharing of available employment upon the expressed desire of the employees, and adjusted by mutual agreement between employed workers and their employers. PRICE PROVISIONS Article VI of the Code requires that coal must be sold at a fair market price, i.e., a price necessary to carry out the purposes of the N.I.R.A., to pay the minimum rates of wages established, and to furnish employment for labor. Minimum prices are to be established by selling agencies, truly representative of two thirds of the commer cial tonnage of any coal district or group of distri cts, all prices being subject to the approval of the Administrator. The provision that prices shall be published and made subject to review and approval of the Administrator should reduce materially uneconomic and destructive competition among the various fields. Through this control the Administrator may do much to establish proper equilibrium among the producing fields and promote the development of markets which are related geographically and economi cally to the producing centers. Much of the long and wastef ul "cross-hauling" of coal should be eliminated by the establishment of proper price differentials. The pricing and marketing provisions of the Code are expected to relieve the industry of much of the cutthroat competition that has existed and obviate the dumping of coal at ruinous prices, which has demoralized markets, and resulted in mine realizations for coal inadequate to provide decent levels of wages. It affords a means by which wage earners in the industry need not bear the burden of inadequate prices and makes possible a degree of stabilization never heretofore achieved in the industry. The Code provides public representation on the National Bituminous Coal Industrial Board to assist and advise the Administrator in

PAGE 16

XVI all matters relating to the operation of the Code and its effect upon the consumers' interests. AD MINISTRATION The Code provides for maximum degree of autonomy within the five Divisions established. Each Division shall be administered by a Code Authority, composed of members truly representative of the producers within the area, and one member, without vote, appointed by the President. The Presidential members of the Divisional Code Authorities shall constitute the National Bituminous Coal Industrial Board. (The President may appoint not more than three members of the Industrial Board in addition to, or in substitution for one or mo re of, the aforesaid mem bers of the Divisional Code Authorities. ) The National Board shall advise and assist the Administrator in the administr ation of the Code. For the settlement of labor disputes, there is provided in the Code for the establishment of a Bituminous Coal Labor Board in each Division. (Except there shall be two Boards for Division No. 1.) The members of the six Bituminous Coal Labor Boards shall constitute the National Bituminous Coal Labor Board. The duties of the Board shall be to administer labor matters and disputes for the industry which fall outside the province of the District Boards or which, the District Boards have been unable to handle or compose; however in order to provide for the impartial dec ision of any controversy submitted to the National Bituminous Coal Labor Board there is imposed, as a condition upon the functioning of said Board, that only the impartial and disinterested representatives of the President appointed to the Divisional Labor Boards shall participate in the decisions of the National Bituminous Coa l Labor Board, the other members thereof acting only in an advisory capacity. All activities, decisions, and promulgations of authority of the several administra tive agencies provided for in the Code are subject to the review and approval , or veto, of the Administrator fol' the Industry. In addition, the Administrator is empowered to (1) prescribe rules and regulations to prevent unfair deductions in wages, (2) investi gate, through a designated agency, wages , hours, and other e lements of the Code, (3) direct Presidential members of Code Authorities, (4) review and approve or veto market prices proposed by sales agencies established under the Code, (5) prescribe the furnishing of statistics to government agencies, (6) convene National Bituminous Coal Labor Board when necessary, (7) recommend for approval of President proposed amendments to the Code by any Code Authority, and such other duties expressed in the Code. FINDINGS I have found that-(a) The Code complies with the pertinent proVIs10ns of Title I, National Industrial Recovery Act, including, without limitation, subsection (a) of Sec. 7, and subsect ion (b) of Sec. 10 thereof. (b) The several Code Authorities established under the Code are truly representative of their respective districts and impose no inequitable restrictions upon admissions to membership.

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XVII ( c ) The Code , as submitted and amended, imposes necessary con ditions for the protection of consumers, producers, and employees, will not permit monopolies or monopolistic practices, or eliminate or oppress small enterprises, and will not operate to discriminate against them. (d) The Code has been approved by the Labor Advisory Board, the Industrial Advisory Board, and the Consumers' Advisory Board. I have, therefore, recommended approval of the Code, as submitted, to be effective until April 1, 1934, as proveded in Article XI thereof. Respectfully submitted. K. M. SIMPSON, Deputy Administrator.

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CODE OF FAIR COMPETITION FOR THE BITUMINOUS COAL INDUSTRY ARTICLE I-PURPOSES To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are submitted as a Code of Fair Competition for the bituminouscoal industry and upon approval by the President shall be the standards of fair competition for this Industry. ARTICLE II-DEFINITIONS As used in this Code the term "Industry" as applied to the Bituminous Coal Industry means the production and original sale of all kinds of coal (except anthracite), lignite, and the production and original sale of coke other than byproduct coke. The term "employer" includes any person employing labor in any phase of the industry. The term "employee" includes all persons employed in the industry. The term "Administrator" means the official design ated by the President to administer the National Industrial Recovery Act. ARTICLE III-MAXIMUM HouRs OF LABOR No employee, except members of the executive, supervisory, technical, and confidential personnel, shall be employed in excess of 40 hours in any calendar week after the effective date of this Code. No employee shall be required or permitted to work more than eight hours in any one day at the usual working places or othe rwise in or about the mine (exclusive of lunch period), whether paid by the hour or on a tonnage or other piecework basis. There shall be excepted from the foregoing limitations (a) em ployees required because of accidents which temporarily necessitate l onger hours for them; (b) supervisors, clerks, technicians and that small number of employees at each mine whose daily work includes the handling of man-trips and/or haulage animals and coal in transit and those who are required to remain on duty while men are entering and leaving the mine. The foregoing maximum hours of work shall not be construed as a minimum; and if at any rn_jne a majority of the employed workers express their desire, by written request to the employer, to share available work with bona fide unemployed workers of the same mine, the number of hours' work may be adjusted accordingly by mutual agreement between such employed workers and their employers. ARTICLE IV-MINIMUM RATES OF PAY The basic minimum rate for inside skilled labor and the basic minimum rate for outside common labor shall be the rate hereinafter (1)

PAGE 20

2 set forth in Schedule "A" for each district therein described for each such cln, ssification of labor, with the understanding that other classi fications of employment will maintain their customary differentials abo-v e or below said basic minimum rates and that payments for work performed on a tonnage or other piecework basis will maintain their customary relationship to the payments on a time basis provided in said basic minimum rates. ARTICLE V-CONDITIONS OF EMPLOYMENT (a) Employees shall have the right to organize and bargain col lectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) no employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and (3) employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. (b) Except as otherwise hereinafter provided, all coal mined on a tonnage basis shall be weighed and the miner paid on the basis of 2,000 or 2,240 pound ton. The miners shall have the right to a check weighman, of their own choosing, to inspect the weighing of coal: Provided, that where mines are not now equipped to weigh coal a reasonable time may be allowed to so equip such mines; and pro• vided, that in any case where rates of pay are based on any other method than on actual weights, the miners shall have the right to check the accuracy and fairness of the application of such methods, by representatives of their own choosing. (c) The net amount of wages due shall be paid semimonthly in lawful money or par check at the option of operators. Any deductions from employees' pay, if not a matter of agreement, shall be in conformity with such general rules and regulations as the Administrator may prescribe for the purpose of preventing unfair deductions, or those which may in effect lower the rates of pay herein provided. (d) Employees other than maintenance or supervisory men or those necessary to protect the property shall not be required as a condition of employment to live in homes rented from the employer. (e) No employee shall be required as a condition of employment to trade at the store of the employer. (f) No person under seventeen (17) years of age shall be employed inside any mine or in hazardous occupations outside any mine, pro vided, however, that where a state law provides a higher minimum age, the state law shall govern; no person under the age of SL'Cteen (16) shall be employed in or about a mine. (g) As soon as po ss ible after the adoption of this Code, the National Recovery Administration s hall undertake, through a designated committee or agency, an investigation for the purpose of reporting on or before December 31, 1933; upon (a) the practicability and cost (assuming the maintenance of existing rates of pay) of applying to bituminous coal mining a shorter work day and work week; (b) the

PAGE 21

3 effect of an advisability of revising wage differentials in the various divisions and districts of the industry and in the event of recommended change specification of the amount thereof; (c) the sales obtained for coal, or reasonably to be anticipated, up to the time of the report, for the purpose of determining whether wages and employment can be further increased or maintained without imposing undue burdens upon the industry. On January 5, 1934, there shall be held a conference between representatives of employers and employees operating under this Code, together with representatives of the National Recovery Administration, for the purpose of determining what, if any, revi s ions may be desirable at that time of the wages, hours, and differentials, or any other requirements of this Code, on the basis of conditions then existing and the report of representatives of the National Recovery Administration made as hereinbefore provided. Unless revised by mutual agreement, as the result of said confer ence beginning January 5, 1934, the hours of work, minimum rates of pay, and wage differentials as set forth in this Code shall continue in effect until April 1, 1934. ARTICLE VI-UNFAIR PRACTICES SECTION 1. The selling of coal under a fair market price (necessary to carry out the purposes of the National Industrial Recovery Act, to pay the minimum rates herein established, and to furnish employ m~nt for labor) is hereby declared to be an unfair competitive prac tice and in violation of this Code. In order to determine the fair market price, agencies shall be established, as hereinafter provided, and sales of coal at any time at a price less than a fair market price determined and published, as hereinafter provided, shall create against any person selling at a lower price a prima facie presumption that such a person is engaged in destructive price cutting and unfair competition. It shall be proper in determining such fair market price to take into consideration, in addition to the matters above set forth, also competition with other coals, fuels, and forms of energy or heat production. SEc. 2. The fair market prices of coal of any grade and character referred to in the next preceding section, subject to the power of review hereinafter stated shall be-(a) The minimum prices for the various grades and sizes in the various consuming markets which may be established for future application by a marketing agency or by marketing agencies, of whatever form or howsoever constituted, now existing or hereafter created or organized, acting for coal producers truly repres ntative of at least two thirds of the commercial tonnage of any coal district or group of districts, such minimum prices to be effective when and as announced as provided in Section 4 hereof. (b) The minimum prices for the various grades and sizes in the various consuming markets, where no such marketing agency exi ts, which may be established for future application by the respective Code Authorities hereinafter set up, for their respective areas, after having given consideration to the various conditions and circum stances entering into the sale of each grade and class of commercial coal produced in the di~trict or group of districts it represents, such

PAGE 22

4 minimum prices to be effective '"'hen announced as provided in Section 4 hereof. . (c) As a basis for determining the fair market price to be announced and published, as provided in the two preceding clauses, the Code Authorities shall utilize the Classifications of coals made by such agencies as are referred to in clause (a) of this section, and shall classify the coals in said districts not sold by such agencies and also the coals in the districts referred to in clause (b) of this section, to which the various prices apply. Said Code Authorities shall, at all times, provide and keep open an office during business hours to which any coal producer in said districts and any representative of the Administrator may apply for information with respect to said classifi cations and prices. ( d) The term "marketing agency" or "agency" as used in this Article shall include any trade association of co.al producers com plying with the requirements of a marketing agency and exercising the functions thereof. SEc. 3. The fair market prices established for future application under the provisions of Section 2 (a) shall be reported to said Code Authorities by any such marketing agencies in such manner as may be required by such Authorities. SEc. 4. The fair market price of bituminous coal, established as aforesaid by such agencies and Code Authorities shall be published within fifteen days after the effective date of this Code, after approval by the Presidential Member of the Code Authority (acting under the direction of the Administrator), who in his approval may permit a reduction or increase in said prices by action of said agencies or Authorities within the limits which he may prescribe, and thereafter shall be published whenever any change is made therein, and not less frequently than one each month, and on the first of the month. Simultaneously with such publication, said fair market prices of bituminous coal shall be transmitted by the Code Authorities to the National Recovery Administrator for his further review and subsequent action. SEc. 5 . Both the records and the data of such marketing agencies and of said Code Authorities shall be open to inspection and investigation by any agent of the Administrator whom he shall appoint for that purpose. Should such an agent of the Administrator disapprove of any changes proposed in any fair market prices from those previously approved by the Administrator as being 1n excess of any reductions or increases allowed in such approval, such changes shall not be made effective unless and until the Administrator shall approve them. SEc. 6. The consignment of unordered coal, or the forwarding of coal which has not actually been sold, consigned to the producer or his agent, is a violation of this code; provided, however, that coal which has not actually been sold may be forwarded, consigned to the producer or his agent at rail or truck yards, tidewater ports, river ports, or lake ports, and/or docks beyond such ports, but such consignments shall be limited to cover: (a) Bunker coal; (b) Coal applicable against existing contracts; (c) Coal for storage (other than in railroad cars) by the producer or his agent in rail or truck yards or on docks, wharves, or other yards for resale by the producer or his agent.

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5 SEc. 7. The adjustment of claims with purchasers of coal in such manner as to grant secret a . llowance s, secret r ebates, or secret con cessions creates price discrimination and is a viol ation of this Code. SEc. 8. The prepayment of freight chu . rges with intent or with the effect of granting a discriminatory credit allowance is a violation of this Code. SEc. 9. The giving in any form of adjustments, allowanc e s, discounts, credits, or refunds to purchasers or sellers of coal, for the purpose or with the effect of altering retroactively a price previously agreed upon in such manner as to create pric e discrimina .tion is a violation of this Code. SEc. 10. The predating or the postdating of any invoice or contract for the purchase or sale of coal, except to conform to a bona fide agreement for the purchase or sale entered into on the predate is a violation of this Code. SEc. 11. Terms of sale shall be strictly adhered to; and the payment or allowance of rebates, refunds, credits, or unearned discounts, whether in the form of money or otherwise, or extending to certain purchasers services or privileg es not extended to all purchasers under like terms and conditions, is a violation of this Code. SEc. 12. An attempt to purchase business, or obtain informatio n concerning a competitor's business by gifts or bribes, is a violation of this Code. SEc. 13. The intentional misrepresentation of analysi s and/or sizes or the intentional making, causing or permitting to be made, or publishing, of any false, untrue, misleading, or deceptive, statement, by way of advertising, invoice, or otherwise, concerning the size, quality, character, nature, preparation or origin of any coal, bought or sold, is a violation of this Code. SEc. 14. The unauthorize d use, either in written or oral form, of trade marks, trade names, slogans, or advertising matter already adopted by a competitor, or deceptive approximation thereof, is a violation of this Code. SEc. 15. Inducing or attempting to induce, by any means or device whatsoever, a breach of contract between a competitor and his customer during the term of such contract, is a violation of this Code. SEc. 16. Nothing in the foregoing sections of this Article shall prevent any American producer from creating special prices for overseas exports. SEc. 17. The splitting or dividing of commissions, brokers fees, or brokerage discounts, or otherwise in any manner through sham or indirection the use of brokerage commission or jobbers arrangements or sales agency for making discounts, allowances, or rebates, or prices other than those determined as provided in this Code, to any industrial consumer or to any retailer, or to others, shall be a violation of this Code. SEc. 18. To sell to, or through, any broker, jobber, commission account, or sales agency, which is in fact an agent for an organization of retailers or industrial consumers, whereby they secure indirectly a discount, dividend, allowance or rebates, or a price other than that determined as provided in this Code shall be a violation of this Code.

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6 ARTICLE VII-ADMINISTRATION SECTION 1. For the purposes of Administration of this Code, the Bituminous Coal Industry is hereby divided into five divisions as follows: Division No. ].-Pennsylvania, Ohio, Lower Peninsula of Michigan, Maryland, West Virginia, Kentucky, Northern Tennessee, (including all counties not included within Division No. III), Virginia and North Carolina. 1 Division No. JJ.-Iowa, Indiana, and Illinois. Division No. JJJ.-Alabama Southern Tennessee, (including Marion, Grundy, Seguatchie, White, Hamilton, Bledsoe and Rhea Counties), and Georgia. Division No. JV.-Missouri, Kansas, Arkansas, Oklahoma, and T exas. Division No. V.-New Mexico, Colorado, Utah, Wyoming, North Dakota, South Dakota, Montana, Idaho, Washington, Oregon, Cali fornia, Nevada and Arizona. In each of the foregoing five divisions, subdivisions may be estab lish ed, as hereinafter provided. SEc. 2. Divisional Code Authorities.-For each of the foregoing divi s ions there shallbe established within ten days after the effective date hereof, or within such further time as may be permitted by the Administrator, a Divisional Code Authority, or Subdivisional Code Authorities for the administration of this Code within such division, either for the division as a unit, or for subdivisions thereof, respectively, as may be determined. All the members of a Code Authority, except one (without vote and to be appointed by the President) shall be selected by an association or associations, or a committee of coal producers within the division or subdivision which shall be truly representative of the industry therein and impose no inequitable restrictions on admission to membership. A full report of any such action taken to establish a Code Authority shall be made to the Administrator and shall become effective upon approval by him. A subdivision shall consist of a geographical area within which all coal producers shall be entitled to membership in the association or committee establishing the Code Authority. The Administrator shall have power to limit the number of subdivisions within a division and to determine any controversy arising in the establishment of such a Code Authority, and his decision shall be conclusive as to compliance with the requirements of this Section and of the National Industrial Recovery Act in the initi a l establishment of such a Code Authority. In the event that Subdivisional Code Authorities are established within a division, such Subdivisional Code Authorities shall establish a Divisional Code Authority to exercise the functions hereinnJter provided for a Divisional Code Authority and any other functions which n1ay be conferred upon the Divisiona l Code Authority by the Subdivisional Code Authorities, all in conformity with any rules and regulations prescribed by the Administrator. One member of a Divisional Code Authority, withou t vote, shall be appointed by the President. A Code Authority sha ll administer this Code in its Div ision or Subdivision and sha ll have the duties and exerc ise the pow ers which are con f erre -l n o n it in e,his article and in Article VI of this Code, and

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7 shall have authority to adopt appropriate by-laws, rules and regula tions for the exercise of its functions. Marketing agencies or trade associations may be established or maintained within any division or subdivision by a voluntary associa tion of producers within any producing district therein, as such district may be defined by the Code Authority and function under such general rules and regulations as may be prescribed by the Code Authority, with the approval of the Administrator, for the purpose of preventing any unfair practices, as defined in Article VI of this Code. SEc. 3. Each Code Authority shall collect and compile any reports and other information required under the National Industrial Recovery Act; and in investigations of any complaint of unfair practices the Presidential member of a Code Authority shall have power to require reports from, and shall be given access to inspect the books and records of producers within the jurisdiction of such Code Authority to the extent he may deem necessary for the determination of the validity of the complaint. All coal producers subject to the Code shall furnish to any government agency or agencies designated by the Administrator such statistical information as the Administrator may, from time to time, deem necessary for the purposes recited in Section 3 (a) of the National Industrial Recovery Act; and any rep orts and other information collected and compiled by a Code Authority, as heretofore provided, shall be transmitted to such government agencies, as the Administrator may direct. The expense of administering this Code by a Divisional (or Sub divisional) Code Authority shall be borne by those subject to such Code Authority, each paying his proportionate share, as asse ss ed, computed on a tonnage basis, in accordance with regulations pre scribed by the Code Authority with the approval of the Administrator. SEc. 4. Industr ial Board.-There shall be establi she d within ten days after the creation of the Divisi onal Code Authorities a National Bituminous Coal Industrial Board, consisting of four members designated by the Divisional Code Authority of Division No. I, two mern bers designated by the Divisional Code Authority of Division No. II, one member each designated by the Divisional Code Authoritie s of Divisions No. III, IV, and V and the five members of the Divisional Code Authorities who have been appointed by the President. The President muy appoint not more than three members of the Industrial Board in addition to, or in substitution for one or more of, the afore said five members of the Divisional Code Authorities . This Board shall have the duties and exercise the powers conf er r ed upon it in this Code, or any revisions thereof and particularly shall meet from time to time at the call of the Administrator, who shall be ex officio Chairman thereof, to consider and to m ake recommendations to the Divisional Code Authorities and to the President as to any amendments of this Code, or other measures wruch may stabilize and im prove the conditions of the industry and promote the public interest therein. SEc. 5. Labor R elations.-(a) Any controversy concerning hours, wages, and conditions of employment, or compliance with the provi sions of Article V of this Code, between employ ers and employee s who are organized or associated for collective action shall, if possible, be adjusted by conference and negotiation between duly de~ignated representatives of employers and such employees, meeting either in a

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mine conference or district conference or divisiona] conference as the machinery for such conference may be established by agreemen1t of the parties thereto; and it shall be the duty of employers and employees to exert every reasonable effort to establish such a machinery of adjustment and to utilize it to negotiate to a conclusion such contro versies wherever possible. (b) Any such controversy which cannot be settled in the manner so provided and which threatens to interrupt, or has interrupted, or is impairing the efficient operation of any mine or mines to such an extent as to restrain interstate commerce in the products thereof, shall be referred to the appropriate Bituminous Coal Lubor Board, established us hereinafter provided, and the decision of said Board shall be accepted by the purties to the controversy as effective for a provisional period of not longer than six months, to be fixed by the Board. (c) During the consideration of any such controversy either by the agreed machinery of adjustment, or by the Bituminous Coal Labor Board, neither party to the controversy shall change the conditions out of which the controversy arose, or utilize any coercive or retailatory meusures to compel the other party to accede to its demands. (d) If any such controversy shall involve or depend upon the determination of who are the representatives of the employees chosen as provided in Section 7 (a) of the National Industrial Recovery Act, the appropriate Bituminous Coal Labor Board, through any agent or agency it may select, shall have the power to determine the questions by an investigation and, if necessary, by a secret ballot taken under its direction. (e) A Bituminous Coal Labor Board shall be appointed by the President for each Division, except there shall be two Boards for Division No. I, to exercise the powers herein conferred upon it, which shall consist of three members, one to be selected from nominations submitted by organizations of employees within such Division, one to be selected from nominations by the Divisional Code Authority and one who shall be wholly impartial and disinterested representative of the President. The expenses of such board shall be met by equal contributions from the employers and employees nominating members, the amount and method of collecting which shall be determined by regulations prescribed by the President. (f) There shall be a National Bituminous Coal Labor Board com posed of the members of the six divisional labor boards which may be convened upon call of the Administrator in the event that-1. A controversy involves employers and employees of more than one division, or 2. The decision of a divisional lubor board affects operating con ditions of more than one division either directly or because of its effect upon competitive marketing, or 3. In the opinion of the Administrator the decision of a divis"onal labor board involves the application of a policy affecting the general public, or the welfare of the industry as a whole. The National Bituminous Coal Labor Board may exercise all the po'.vers conferred upon a divisional labor board, either in giving original consideration to a controversy, or in reviewing the decision of a divisional labor board, which may be either affirmed, set aside and/or modified.

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9 ARTICLE VII-SAFETY Employers and employees shall coop<'rate in muintnining safe conditions of operation in compliance with :he applicable requirements of State laws or regulations in conformity therevi'ith. ARTICLE IX-AMEND 1:ENTS Any Code Authority rn.ay propose amendm0nts to this Code from time to time effective generally or as to the area. within its juris diction which, after submi sion to any other Code Authority affected thereby (which shall include the divisional Code Authority in case of an amendment proposed by a subdivisional Code Authority), may be recommended by the Administrator for the approval of the President. ARTICLE X This Code and all the prmrisions thereof are expressly n1ade subject to the right of the President, in accordance with the provi;ion of subsection (b) of S ction 10 of the National Industrial Recovery Act, from time to Lime to cancel or modify any order, approYal, license, rule, or regulation issued under Title I of said Act and specifi cally, but without limitations, to the right of the President to cancel or modify his approval of this Code or any conditions in1posed by him upon his approval thereof. ARTICLE XI-EFFECTIVE DATE AND TERMINATION This Code shall become effective on the second Monday following its approval by the President, and shall continue in effect until April 1, 1934, and thereafter in the absence of the exercise of the power reserved to the President in Article X, subject to the exercise of the option, after 30 days' notice to the Adn1inistrator, by any coal producer to withdraw his consent after April 1, 1934, to the further enforcement of the Code as a Code to which he ha,s voluntarily given his consent.

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SCHEDULE A BASIC MINIMUM RATES Minimum Inside Minimum outside skilled labor common labor District Dollars Cents Dollars Cents per day per hour per day per hour DISTRICT A Pennsylvania _________________________________________________ _ Ohio __________________________________________________________ _ Lower Peninsula of Michigan _____ -----------------------------Panhandle District of West Virginia! _________________________ _ DISTRICT B Northern West Virginia, _____________________________________ _ DISTRICT C Southern West Virginia! ______________________________________ _ Eastern Kentucky 1 ___________________________________________ _ Upper Potomac District of West Virginia a ____________________ _ ~~~f~f~d===================================" ================= Northern Tennessee 4 _________________________________________ _ DISTRICT D Indiana _______________________________________________________ _ DISTRICT E Illin ois ________________________________________________________ _ DISTRICT II' Iowa'----------------------------------------------------------Wayne and Appanoose Counties of Iowa ______________________ _ DISTRICT 0 Missouri, Kansas, Arkansas, and Oklahoma ___________________ _ DISTRICT H Wes tern Kentucky 8 __ ----------------------------------------_ DISTRICT 1 Alabama ______________________________________________________ _ Georgia _______________________________________________________ _ Hamilton and Rhea Counties of Tennessee ____________________ _ DISTRICT G-1 Marion, Grundy, Sequatchie, White, Van Buren, warren, and Bledsoe Counties of Tennessee_------------------------------DISTRICT K New MeYico __________________________________________________ _ South ern Colorado 9 ___________________________________________ _ DISTRICT L Northern Colorado 10 __________________________________________ _ 4.60 4. 60 4. 60 4. 60 4.36 4.20 4.20 4.20 4.20 4.20 4.20 4.57 5.00 4. 70 4.56 3.75 4.00 3. 40 3.40 3.40 3.84 4.48 4.44 5.00 57 57 57 57 54 52 52 52 52~2 52 2 52 57H 62H 58 57 46 50 42 42 42 48 62H 3.60 3.60 3.60 3.60 3.36 3.20 3.20 3.20 3.20 3.20 3.20 4.20 4.00 4.00 3.86 3.28 3.00 2. 40 2. 40 2. 40 2.84 3. 75 3 . 75 3. 75 45 45 46 45 42 40 40 40 40 40 40 52 50 50 4SU 41 37 30 30 30 35 46 1 Includes Hancock, Brooke, Ohio, and Marshall Counties. 1 Includes Monongalia, Preston, 1\1arion, Harrison, Taylor, Lewis, Barbour, Gilmer, Upshur, Ran dolph, Braxton, and Webster Countie3 and those mines in Nicholas County served by tbe B. &: 0 . R.R. a Includes all mines in counties of West Virginia not named under districts A and B and under the Uppe r Potomac District. 'Includes a ll mines in Kentucky located east of a north and south line drawn along the Western bound-ary of the City of Louisville. 1 Includes Grant, Mineral, and Tucker Counties. 6 Includes all counties in Tennessee not named Districts J and J-1. 1 Excludes Wayne and Appanoose Counties. 8 Includes a ll mines in Kentucky west of a north and south line drawn along the western boundary of the City of Louisville. 9 Includes all counties in Col orado not name d under District L . 10 Includes J ackson , Larimer, Weld, Boulder, Adams, Arapahoe, El Paso, Douglas, Elbert, and Jeffer son Counties. N0TE.-Differences between districts in the foregoing minimum rates are not to be considered as fixing permanent wage differentials or establishing precedents for future wage scales. (10)

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11 BASIC MINIMUM RATEs-Contin 1ed Minimum inside Minimum outside skilled l abo r co=on l abo r District Doll a rs Cents Dollars Cents per day per hour p er day per hour DISTRICT M Utah ___________________________________________________________ 5 .44 68 4.48 56 DISTRICT N Southern Wyoming ____________________________________________ 5 .42 67 4.44 55 Northern Wyoming ____________________________________________ 5.42 67 4.54 56 DISTRICT 0 Montana _______________________________________________________ 5.63 70 4.82 60)4 DISTRICT P Washington ____________________________________________________ 5.40 67 4.00 50 DISTRICT Q North Dakota __________________________________________________ 4.00 50 3 .20 40 South Dakota __________________________________________________ 4.00 50 3.20 40 0

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UNIVERSITY OF FLORIDA II I II IIIIII Ill Ill lllll lllll II IIII IIIIII IIII Ill llll Ill llllll Ill I I 3 1262 08850 2975