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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
BITUMINOUS COAL INDUSTRY
AS APPROVED ON JANUARY 25, 1935
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Approved Code No. 24-Amendment No. 6
Registry No. 702--45
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Approved Code No. 24-Amendment No. 6
AMENDMENT TO CODE OF FAIR COMPETITION
BITUMINOUS COAL INDUSTRY
As Approved on January 25, 1935
APPROVING AMENDMENT OF 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 approval of an amendment
to the Code of Fair Competition for the Bituminous Coal Industry:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise; does find that said amend-
ment and the Code as constituted after being amended comply in all
respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act, and does hereby order that
said amendment be and it is hereby approved to become effective
immediately and remain effective only until and including April 30,
1935, and that the previous approval of said Code is hereby amended
to include an approval of said Code in its entirety as amended.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HAmiMAN, Administrative Officer.
W. P. ELLIS,
WASHINGTON, D. C.,
January 5, 1935.
111342*--1465-111---35 f1 \
REPORT TO THE PRESIDENT
The White House.
SI : An application has been duly made pursuant to and in full
compliance with the provisions of the National Industrial Recovery
Act, for an amendment to the Code of Fair Competition for the
Bitumious Coal Industry, submitted by a Sub-Divisional Code Au-
thority of the Industry and an amendment submitted by the National
Recovery Administration for consideration at the public hearing,
held in Washington, D. C., January 4, 1935.
At this hearing, modifications of such proposed amendment were
submitted by the National Bituminous Coal Industrial Board, an
agency created and established under the Code for the purpose,
among others, of considering and making recommendations to the
President as to any amendments of the Code. Pursuant to the hear-
ing and to information and considerations properly before us, as
provided in the published notice of hearing, these amendments have
been revised. Also as a result of this hearing an amendment to
Article VI, Section 1 was approved January 8, 1935.
The existing provisions of Article VI, Sections 2, 3 and 4 and
Article VII, Section 2 of the Code for said Industry are entirely in-
adequate in view of the necessity for changing and improving the
methods and procedure in establishing fair market prices. An ex-
treme emergency confronts the Industry occasioned by the custom
of making forward contracts, under which the price for delivery of
coal might jeopardize the hour and wage provisions of the Code, re-
sulting in serious labor disturbances to the detriment of the public.
It is, therefore, evident that the proposed amendment of Article VI,
Sections 2, 3 and 4 and of Article VII, Section 2 of said Code, as
modified by the National Industrial Recovery Board, as provided in
the notice for public hearing thereon, will assist in improving the
existing inadequate provisions.
The Acting Deputy Administrator .in his final report to us on the
amendment to the Code of Fair Competition for the Bituminous
Coal Industry having found as herein set forth and on the basis of
all proceedings in this matter:
We find that pending such further order as the National Industrial
Recovery Board may enter thereon;
(a) The amendment to said Code and the Code as amended are
designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of inidutry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanctions and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present pro-
ductive capacity of industries, by avoiding undue restriction of pro-
duction (except as may be temporarily required) by increasing the
consumption of industrial and agricultural products by increasing
purchasing power, by reducing and relieving unemployment, by im-
proving standards of labor, and otherwise by rehabilitating industry
and conserving natural resources.
(b) The Code as amended complies in all respects with the pertinent
provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7 and Subsec-
tion (b) of Section 10 thereof.
(c) The Code empowers the National Bituminous Coal Industrial
Board to consider and to make recommendations to the President as
to any amendments of this Code. It also empowers any Sub-Divi-
sional Code Authority to propose amendments on behalf of the
Industry as a whole after submission to any other Code Authority
affected thereby (which shall include the Divisional Code Authority).
(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not operate
to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
In view of the emergency and conditions existing, said amendment,
as modified, is accordingly approved to become effective immediately
and for a temporary period to and including April 30, 1935, during
which period further consideration will be given to the problems
For the National Industrial Recovery Board:
W. A. HARRIMAN,
JANUARY 25, 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE BITUMINOUS COAL INDUSTRY
Modify Article VI by inserting to appear in said Article VI as
a preamble thereto and immediately to precede Section 1 thereof,
For the purpose of establishing and maintaining fair practices so
as to protect the public in its right to buy coal at reasonable prices;
to provide and maintain an adequate wage structure for employees;
and to protect the producers in their right to produce coal and sell
it in the markets, while observing the purposes of the National
Industrial Recovery Act, it is provided as follows:
and by modifying Sections 2, 3 and 4 of said Article VI in such
manner that the preamble to and Sections 1, 2, 3 and 4 of said Article
VI shall read as follows:
ARTICLE VI-UNFAIR PRACTICES
For the purpose of establishing and maintaining fair practices
so as to protect the public in its right to buy coal at reasonable
prices; to provide and maintain an adequate wage structure for
employees; and to protect the producers in their right to produce
coal and sell it in the markets, while observing the purposes of the
National Indu-trial Recovery Act, it is provided as follows:
SEcTION 1. The making of a contract to sell or offer to sell coal,
whether for iniii,-ldiate or future delivery, at a price below the fair
market prirc at the date of such contract or offer (regardless of
the dates specified for the making of deliveries), or any sale or
delivery of coal (other than puir.-ant to contract made in accordance
with the foregoing) below the fair market price thereof at the time
of delivery, determined as hereinafter provided, is hereby declared
to be an unfair competitive practice and in violation of this Code.
Such fair market price shall be determined and established as here-
inafter provided, and it shall be proper in determining such fair
market price to consider the purposes of the National Industrial
Recovery Act, the minimum rates of pay herein establi-hed, the
furnishing of employment for labor and the competition with other
coals, fuels, and forms of energy or heat production. (Amendment
NuilwIxr Five, January 8, 1935.)
SECTi:o 2 (a). The fair market prices of coal of any kind, grade
or size, referred to in the next preceding section, subject to the power
of review hereinafter stated, shall be-
(1) The minimum prices for the various kinds, 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 here-
after created or organized, acting for producers 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 an-
nounced as provided in paragraph (f) of this Section.
(2) The minimum prices for the various kinds, grades and sizes
in the various consuming markets, which may be established for
future application by the respective Code Authorities hereinafter
set up, for their respective areas where no such marketing agency
exists, such minimum prices to be effective when announced as pro-
vided in paragraph (f) of this Section.
(b) In determining such fair market prices, marketing agencies
and Code Authorities shall take into consideration, among other
factors, the purposes of the National Industrial Recovery Act, the
minimum rates of pay herein established, the furnishing of employ-
ment for labor, competition with other coals, fuels and forms of
energy or heat production, the customs, requirements and needs of
the buying and consuming public for various kinds, grades and sizes
of coal and the necessity for giving to consumers reasonable oppor-
tunity to buy and to producers reasonable opportunity to sell tneir
coal in usual and normal markets. Furthermore, in order to deter-
mine such fair market prices, the marketing agencies and Code Au-
thorities shall classify all coals, applying all factors usually con-
sidered in connection with physical structure and chemical analysis
and their effect upon the salability and use value of such coals, and
with due regard for the foregoing provisions, shall so price coals
as to afford producers reasonable opportunity to sell the coal in
competition with other coals, fuels and forms of energy or heat pro-
duction, and to this end the marketing agencies and Code Author-
ities shall give due regard to the prices made by competing districts,
but it shall be their purpose, while making competitive market prices,
not to make dumping prices in any area of consumption.
(c) The term "marketing agency" as used in this Code shall
include any trade association of coal producers complying with the
requirements of a marketing agency and exercising the functions
thereof as provided herein.
(d) Where a marketing agency functioning in any district or
group of districts acts as selling agent for producers of at least two-
thirds of the commercial tonnage, the Code Authority in announcing
the prices of coal of producers outside of such agency in such district
or group of districts shall utilize and follow the practices and meth-
ods of classification, and the classifications, used by such agency and
shall adopt the same prices for the respective classes of coal as those
fixed by such agency.
(e) The fair market prices established for future application un-
der the provisions of Section 2 (a) (1) shall be reported to said
Code Authorities by any such marketing agencies in such manner as
may be required by such Authorities.
(f) The fair market price or prices of bituminous coal established
as herein provided shall become effective, subject to appeal, suspen-
sion and modification as hereinafter provided, when the same shall be
approved by the Presidential Member of the Code Authority (acting
under the direction of the Administrator), and when published as
provided herein. In his approval the Presidential Member may per-
mit a reduction or increase in said price or prices by action of said
nm rketing agencies or Code Authorities within the limits which he
may prescribe. Said prices shall be published by the Code Authority
when so etaiblishied and approved by the Presidential Member and
from time to time there after as may be determined by the Code Au-
thority or required by the Administrator, and in any event when any
change is made therein. Simultaneously with such publication said
fair market price or prices shall be transmitted by the Code Author-
ity making or giving effect to and publishing any change in price, to
the National Recovery Administrator for his review and subsequent
(g) Each Code Authority shall, at all times, provide and keep
open an office during business hours to which any coal producer in
its district or districts and any representative of the Administrator
may apply for information with respect to classifications and prices.
SECTION 3. In order to prevent injustices among or between pro-
ducers, any producer shall be granted a hearing upon written com-
plaint, and the marketing agency or Code Authority which estab-
lishes fair market prices for the coals of such producer shall hold
said hearing within five days (unless extension of time is consented
to by such producer) after the receipt of said complaint, directly
or through such agency as it may establish. In such complaint, the
producer shall set out the grounds of his complaint, whether he is
objecting to the prices fixed on his coal, and whether he desires an
increase or decrease in his prices. He shall further set out whether
he is objecting to prices of other producers in the same district or
on account of prices in competing districts. The marketing agency
or Code Authority, shall, to the extent reflected in the evidence, take
into consideration, in addition to the factors set out in this article,
the market demand for the class of coal of the producer, the relative
operating time at the mines of the producer, as compared with
that of the mines of other producers in the same and competing
districts, their past production history, as well as the quality of the
coal and the comparative delivered value thereof to the consumer,
and such other pertinent facts as may be presented, and shall make
its decision within five days after the hearing, unless extension of
time is consented to by such producer. A record shall be made of
all the facts and evidence presented to the marketing agency or
Code Authority, as the case may be, at such hearing, and of the
decision rendered thereon. Such producer shall have the right of
appeal to an impartial Board of Arbitration which shall be set up
by such agency or Code Authority, as hereinafter provided; and the
decision of such Board shall be binding upon the producer and shall
constitute the decision of such agency or Code Authority.
SECTION 4. In order to establish fair competitive price relation-
ships and practices between marketing agencies and/or Code Au-
thorities representing different Divisions or Subdivisions, such agen-
cies and Code Authorities are hereby authorized and directed to
meet and confer with each other and endeavor to agree upon a basis
of fair competitive prices and practices relating thereto as between
such Divisions and/or Subdivisions. They shall take into considera-
tion the same factors as are considered by Code Authorities as be-
tween the producers within the Divisions or Subdivisions as' here-
inbefore set out. Any such agreements made between marketing
agencies and/or Code Authorities representing competing Divisions
and/or Subdivisions shall be submitted to the Administrator for
approval or disapproval and shall become effective within ten days
after receipt thereof by him unless disapproved as being against
the interest of the public. Such agencies and/or Code Authorities
shall endeavor to agree between themselves, subject to the approval
of the Administrator, on rules of procedure, notices of meetings,
and other necessary order of business for such meetings looking to
such agreements, notices of all of which shall be furnished to the
Administrator or his representative, who shall have the opportunity
to be present at such meetings. In default of an agreement as to
such rules and other procedural matter approved by him, the
Administrator may prescribe the same.
If any such agency or Code Authority shall be of the opinion that
any producer or producers represented by it is adversely affected by
any failure to reach such agreement, or that any prices or practices
relating thereto, heretofore or hereafter established in a different
Division or Subdivision, are unfair competitive prices or practices
relating thereto and no such agreement in respect thereof has been
reached, the dissatisfied agency or Code Authority shall have the
right of appeal to the National Coal Board of Arbitration, as herein-
ARTICLE VII-ADM IN ISTRATION
Change the designation of Section 2 to Sub-section (a) of Section
2 and add two additional sub-sections to said Section to be designated
(b) and (c), as follows:
(b) Every marketing agency and Code Authority establishing
prices as herein provided shall immediately set up and maintain a
permanent impartial Board of Arbitration for the marketing agency,
Division or Subdivision for which it acts, to which any producer
represented by such agency or Code Authority may appeal from any
decision thereof as to his classification or price or the practice com-
plained. of; provided, however, that any marketing agency or Code
Authority may elect to join with any other marketing agency or Code
Authority agreeing thereto, with the approval of the Administrator,
to set up such Board for their joint use for the purposes of this
Article. Such Board shall consist of not more than five members,
who shall not be connected directly or indirectly with the coal indus-
try during the time they serve as members of such Board. Such
Board shall prescribe rules of procedure and keep a record of its
proceedings. Any producer filing an appeal shall do so in writing,
accompanied by evidence of service of a copy thereof upon such Code
Authority or marketing agency. Such appeal shall be heard within
five days of the date of filing unless the producer taking the appeal
shall consent to extension of such time. Such Board in reaching its
decision on any such controversy shall be guided, as the basis of such
decision, by the principles upon which fair competitive market prices
and practices relating thereto are to be established as hereinbefore
provided in Article VI; and such Board shall decide the matters at
issue within ten days after the hearing and the decision of such Board
shall be final and binding on the producer and shall constitute the
decision of such Code Authority or marketing agency. If the de-
cision of the Board favors the complainant, the marketing agency or
Code Authority shall revise the price or practice complained of in
accordance with such decision, or in the case of failure of the said
Board to act within such ten days or such extended period as may be
consented to by the complainant, such agency or Code Authority shall
likewise revise such price or practice complained of as if the decision
had been in favor of the complainant.
(c) In order to settle disputes and controversies between or among
marketing agencies or Code Authorities representing different Divi-
sions or Subdivisions with respect to fair competitive prices and
practices relating thereto, there shall be created an impartial National
Coal Board of Arbitration of five members, who shall not be con-
nected directly or indirectly with the coal industry during the time
they serve as members of such Board. The nine members of the
National Bituminous Coal Industrial Board designated by the Divi-
sional Code Authorities shall constitute electors by majority vote to
elect, subject to the approval of the Administrator, and fix the sala-
ries of the members of said National Coal Board of Arbitration and
fill any vacancies thereon. The members of the National Coal Board
of Arbitration shall be paid salaries at the rate of not to exceed
$10,000, each per year and shall serve for a term of two years, subject
to removal by affirmative vote of at least six of said electors. Their
salaries and traveling expenses and all necessary office expenses shall
be paid by Divisional Code Authorities, contributing on a tonnage
basis. Complaints to such Board shall be in writing, setting forth
the reasons therefore, and may be made only by a marketing agency
or by a Code Authority. The Board shall make all necessary rules
and regulations for its operation and procedure and shall keep a
record of its actions and proceedings. Said Board shall hear all
complaints within ten days (or such additional time as may be con-
sented to by complainant) after receipt of formal complaint in writ-
ing, accompanied by evidence satisfactory to the Board that copy
thereof has been served upon the respondent marketing agency or
Code Authority. Copies of the complaints shall also be furnished
to other interested marketing agencies and Code Authorities and to
the Administrator in accordance with rules of the Board. The
Board shall decide all matters submitted to it within ten days after
the hearing unless the time is extended with consent of the com-
plainant and its action shall, subject to changes made under the pro-
visions of the Code, be binding upon the parties for a period of not
less than ninety days unless the Board in its discretion shall consent
to review its action, and thereafter until new matter is submitted by
the complainant sufficient in the opinion of the Board to cause it to
change its decision. In settling and determining the disputes and
controversies between Divisions and Subdivisions above referred to,
said National Coal Board of Arbitration shall be governed by the
same principles and standards, facts and factors as herein prescribed
for the marketing agencies, Code Authorities, and Boards of Arbitra-
tion in fixing prices and determining disputes respecting prices and
practices relating thereto. The decision of the Board shall be trans-
mitted to the Administrator for approval or disapproval and shall
become effective within ten days after its receipt by him unless dis-
approved as being against the interest of the public. Pending hear-
ing on and decision of such complaint the prices or practices com-
plained of may by order of the Board and on such conditions as it
may prescribe be suspended or modified.
Appropriate publication shall be made by the Code Authority
giving effect to any change in price required by such decision.
Approved Code No. 24-Amendment No. 6.
Registry No. 702-45.
UNIVERSITY OF FLORIDA
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