Business Library CLASS- BOOK- DOC. ROOM OFFICE OF NATIONAL RECOVERY ADMINISTRATION DIVISION OF REVIEW THE PRESIDENT'S REEMPLOYMENT AGREEMENT By H. Conrad Hoover WORK MATERIALS # 82 NRA ORGANIZATION STUDIES SECTION MARCH, 1936 OEFICE Qfi NATIONAL R] " IRY ADMINISTRATION DIVISION 01 REVIEW THE PRESIDE!!! '3 REE :*:rLOYi..E; T T AGREEMENT By H. Conrad Hoover NRA ORGANIZATION SIQDI^S SECTION MARCH 1936 '819 [AGAZINES BOUND By W. P. A. ftAR 1 81940 FORWQRD This study of "The President's .Reemployment Agreement" was prepared by uttr, H. Conrad He ;v r f She IHU. < Lzation Studies Section, Mr. William I'. Bardsley in charge. The Agreement was entered into "by more than two million employers as a step in the reemployment program initiated by the National Industrial Recovery Act. This report treats of the Agreement in considerable detail, including discussion of its development, the problems of its administration, and the organization established by the National Recovery Administration to handle the administrative details. Certain conclusions and recom- mendations, found in Chapter VI I, and Appendix I suggest areas for further research. In the fall of 1935, a census was taken which shoved striking response on the part of industry with respect to pn increase in employment and payrolls, Yfork materials No, 83, "An Analysis of the FRA Census", by Mr, Max Sasuly, sets forth in quantitative terms the extent of this response. At the back of this report wi^l be found a orief statement of the studies undertaken by theDivision of Review, La C„ Marshall rirector, Division ofReviev March 19, 1936 9819 Digitized by the Internet Archive in 2013 http://archive.org/details/presidentsr36unit TABLE OF CONTENTS General Review viii Introduction , ix Chapter I , thi resident ' s tei :m] 1 o , ra< nt Fro ;ra a I I. Administration For Industrial Recovery 1 A. Administrator For Industrial Recovery 1 Special Industrial Recovery ioard 1 1 . Origin 1 c\ Acts Ferformed Fertaining to the FRA 1 3. Dissolution am' Creation of the national Emergency Council £ II. The Plan and its Development 2 A. District Offices, Department of Commerce 3 P. The President's Reemployment Education Campaign . 4 1. Bureau oi Public delations, NRA 4 ?. Local NRA Committees 4 C. District •.ccovery Boards 5 D. State ecovery 3oerd.s 5 Ei State Fecover' 3ouncils 6 F. The Fresidcnt ' s Reemi lovraent "rive 6 1. The Employs rs '• Fart 6 (a) Earning and Securing the Blue Eagle ... 6 (b) Darning ar c Sec... ing the Blue Fpgle in Exceptional cases 7 (1) here a Core Had "Pen Submitted .. 7 (?) .here a Coco fled Teen Approved ... 7 (3) Cases or; Individual Hardship 6 2. The Employees ' Fsrt 6 3. The Public ' s Fart 8 0. PEA r olicy T: oerd 8 Chapter II, Fresirient's Reemployment Agreement 9 I . Authori ty 9 I I . Origin 9 III. Nature 10 IV. Furpose 11 A, To Bridge Time Tieeced to Brin,^ fciembers of Trades and Industries Under Codes 11 B, To Eliminate Ci ilc Labor 11 C, To Sprerc Furcnasing Fo'.-er 11 D« To Create Fublic Opinion 11 E. To r.elieve Unfair Competition Between Interstate and Intrastate ..nter-orip.es 11 F. To Determine Frob"! ems oi Trades and/or industries 12 C To Develop p Rule or Standard For Labor Coreitions in all Trades and Industries in all Localities at about the same Time 1? H. To DretJare Fe.nTers of Trade and Industries For Codes 15 1. To Peisurde, Indirectly, Industries to Suomit Cocesl? J. To Ease Competitive inequalities Between Codified and Uncodii ied Ineustires 12 -ii- 9cl9 V. Provisions 01 the Agreement 12 VI. Explanations and In1 bions of the Agreement 15 A. Paragraph --1, Guild Labor 15 I. Official Explanation 15 B« Faragraph w2, ;j oars Applicable to Non- Indus trial ' orkers rnd Store or Service Operrtionr 15 1. Official i.xnlanrtions 16 2. I.:nnlo r ments Included in Par* graph £2 (Non-Incus- trial V.orkers) 16 3. i-.moloyments Not Intenoe-d To He Covered by PLA . 16 4„ Exemptions Aoj luaximum Hoar 7rovicions 16 (a) Paragraph = A , I ..-.A 16 (b) Calendar Ye? r-Lnd Inventories 16 (c^ Fiscal Year-End Inventories 16 5. Minimum ages A'onli cable to r arpgra"oii #2 Employees 16 6, Store or Service Operations 16 C. Fara^rp-oh ~Z , Maximum Hours Applicable to Industrial orkers t 17 1. Official Explanations 17 2. iodif icetion of Faragraph ~5 17 2. ect of Modification of Faragraph ^3 on Signers of FHA 17 4 C Employments 'Jot Intended to be Covered "by PPlA . 17 5. Exemptions Prom aximuu Hoars Frovisiors 17 6. tixtensions of the PEA 17 7. Minimum jpges Applicable to Faragraph ^3 Employees 18 F. Faragraph #4, : :; iployees Lxcapted from Maximum Hoars provisions 16 1. Official Explanations 16 2« Employments Net Intended to be Covered bv PHA . 16 3. Emergency ilaintenance and Kepair ork 16 4. Executive and Managers 16 5. Exemptions from i.feximum --our Provisions 18 (a) Calendar Year-End Inventories 18 (b) I iscal Year-Lnd Inventories 19 (c) :.anr;;ers or Executives receiving More Then 35. DO pei .eek 19 (d) Professional Persons Id (e) To-rs Of Less Tnan 2500 Population 19 (i ) Owner Operated £ tores 19 E. Paragraph 05, inimum Images Applicable to Non- Industrial Workers ■ 19 1. Oificial Explanations 19 2. Employments to virion Paragraph #5, 7I.A Minimum "jages are Applicable 19 3. Employments Not Intended to oe Covered by FEA . 19 4. Exceptions to rnd Exemptions iroi FHA Minimum ~;age Provisions 19 5. I mediate Trade Area 20 9819 -iii- P. Paragraph #6, Kiniraum e ;es Applicable to Indus- trial orkers 20 1. Official Explj nations 20 ?. tits to »nich Paragraph #6, P.-. A Minimum . ages ?re Applicable 20 3. Employments rot Intended to be Covered by ?5A 20 4. Exceptions to ar.d Exemptions from PEA .iinimum ftage Provisions 20 5. Hourly Hate 20 G. Paragraph #7, Compensation for Employment 20 1 ( Official [;xpl a nations and Basic Interpretations?© 2. Preservation Ox age differentials 20 3. Problems 21 E. Paragraph -&, An ti subterfuge 21 1. Official explanation 21 I. Paragraph r 9, Antiprofiteering 21 1. Official Explanation 22 2. -rices 22 J. Paragraph 410, Cooperation P2 1. 01 ficia.l Explanation 22 K. Faragranh 411, Cooes 22 1. Official Explanation 22 L. Paragraph #!£ , Appropriate Adjustments 22 1. Official Explana.tior 22 2. Relief to G-overnment Contractors 22 M. Faragraph #13, Termination of and Substitution to the PixA~ 22 1 . Official Sxplanation 23 c. Effect of Approval of r Core upon Continuation oi the FiiA 23 K. Paragraph #14, Exceptions 23 1, Official Explanation 24 VII. Duraction of the Agreement 24 A. Original Agree aent 24 3. First Extension :" 4 C. Second ano Final Extension 25 D. Present Statue ?6 Chapter III, President's P.e< ;ploy*nent Agreement -olicies 27 I. Initial Policies 27 II. PRA "olicy Board 27 A. Origin and Purpose 27 B. Organization 27 C. Termination 27 III . Slue Ea 'le Division, NfiA 2& A. Origin and Organization 28 B. Sections Handling PPA Policies 28 C. Reorganization 28 P. Termination 28 IV. Compliance Division, 1'r.A 28 A. Origin and Blue Eagle Branch ?& P. Labor and Administrative Branches 29 C. Analysis Branch 29 9819 * * Termination 29 -iv- V. National Co rpliance Board A. Ori :in i no ;-"u; pose B. Organization £9 C. Termination 30 VI. Advisor^ Coancil, Compliance Division, 1PA. 30 VII. Compliance Coancil, NBA 30 VIII. Substitutions to the FHA 30 Authority 30 B. t/iodiii est ions of Substitutions 31 C. Instructions for Sub dttinr Petitions i or Substitutions 31 1. If r Code '" f or ■ ilo -uth the Control Pivision NBA 31 2. If no Code had been Submitted to Control Division 31 D. Policies .:'ollo< eo by tne FPA r olicy Board in Sonsidering Petitions for Substitutions to the FPA . 31 1. Proposed ~!ode Provisions vs. PHA Provisions .... 31 2. Ah; ence of Pro osed 3o< e Provisions 31 3. functions of FBA Policy Soard 35 4. Frocecure 32 5. leadline for Submitting Petitions for Sub- stitutions 33 E. Nature of Substitution to the PnA and Industries Affected 33 P. Application of Approved Substitutions 34 G. Comments 35 IX. Interpretations of the PSA 37 A. Special Interpi etations Co ± dttee 37 P. National Labor 3opt& 37 C. FEA Policy oard 36 D. Interpretation Section, : 'ue Eagle Divirio--, IL-A ... 36 X. Exceptions to the PHA (Cases oi Individual Hardship) .... 38 A. Authority 38 P. Essential Information kequired to bo Suomitted by Petitioners 39 C. Exceptions Section, O.ue Lagle Division, NHA 40 1. Folicies followed oy NBA in Considering Petitions for Exceptions to the PRA 41 2. Procedure Followed by NHA in Considering Petitions for Exceptions to the FPA 43 D. Local NBA Compliance Boards 44 1. Petitions for Exceptions Presented Under Paragraph #14, PHA 44 (a) "oca" 1 . NHA Compliance Poard regulations for H.-nclin: : ; Paragraph ~14 Petitions 43 2. Petitions for Permission to Operate Under Union Contracts 46 (a) Loc^l NBA Co ipliance Board Papulations for Handling 46 P. State NHA Compliance Directors 48 F. Volume and Disposition 49 -v- 981 9 PAGE XI. Government Contracts and Loan? 49 A. Awarding of Government Contracts or Loons Contingent upon Compliance with FEA or Approved Codes 49 1. . ecutive Order #6246 49 ! . Executive Order #6646 50 3. Fur. lie V'orks Administration Regulations 51 Relief to Government Contractors 51 1. Act Providing Reli< f to Government Contractors 5? XII. Enforcement of PBA 52 A. Public Opinion 52 E. Surrender of the Blue Eagle 53 C. Types of Violations ?nd Disposition 54 Chapter IV, Administration of the President's Reemployment Agree lent 56 I. Headquarters (Washington, D. C» ) 56 A. 31ue Eagle Division, NRA 56 1. Executive Section 56 2. Recovery Boards Sc ction 56 I . Complaints Section 56 4. Reorganization 56 5. F: ocedure 57 b. Termination 57 B. Compliance Division, ]L 'A 58 C. National Compliance Board, NRA 5S D. Adjustment of PRA Co rol? ints ant Restoration of Blue Eagle 59 II. Field 59 A. Local Mediation Boards 59 B. Local NRA Compliance Boards 60 1. Origin 60 2. Purpose bO 5. Organization 61 4. Representation 61 5. Permanent Chairman 61 6. Nature 62 7. Procedure for Eiandling Complaints of Non- Compliance with tl e FRA 6? 8. Duration 67 C. State NRA Compliance Directors 67 D. Regional Administration 68 1. Origin 68 2. Regions 68 3. junctions and Fo-ers of regional Directors ... 69 4. Regional Compliance Councils 69 Chapter V, Results and Accomplishments 71 I. Signatories to the FRA 71 II • Employment and Favrolls 71 III. Compliance 71 Chapter VI, Problems 72 I. Folicies and Interpretations 72 Delay in Development ?no Promulgation 72 B. Fear that it was Impossible to Comply and Stay in Business 72 ~vi- 9819 FAGE C. Fear that the President ilifijht exercise the Fower Delected uncer Section 10(d), FlKA 72 i rilure of Suucti tut ions to the PRA to Define Membership ^nd Eurclo/ es 73 E. Field Agencies 73 F. Difficulty and Failure of Field. Agencies to Establish Alleged Violations 74 G. Centralization vs. Decentralization of Enforcement . 74 K. Public Opinion Sole Basis of Enforcement 74 Chapter VII , Conclusion:; and Recommendations , 75 Append ix I 76 Appendix A. Memorandum on Paragraph #7 of the PRA 77 Appendix B. Blue Eagle Division, NKA 80 Appendix C. Blue Eagle Division, NRA Reorganization 85 AP'x.ndix D. Compliance Division, ¥hA 87 Appendix E. National Compliance Board 94 Appendix F. PRA Substitutions 96 Appendix G. General Interpretations, Explanations, In- structions and Ruling ^garding the PEA 132 Apoendix H. Public Act -36 9 177 Appendix I. PRA Census-Tabulation by Stptes, Employment and Payrolls; June, Octooer, 1933 179 9819 -Vll- G-JBNERAl r.EVILW Section 1 of the National Industrial Recover/ Act declared the existence of p national emergency oroductive of "ides"oread unemploy- ment rnd disorganization of industry. One weapon adv.>pted for combatting this emergency was the President's Reemplovment Agreement, widely known as the PRA, which was announced July £0, 1933 as an agreement to be entered into with the President by employers with the -primary objectives of increasing employment and at the same time expediting the code making program of the National Recovery Administration. The Agreement v 'bs based on Section 4a of the Recovery Act and its provisions dealt mainly with child labor, maximum hours arc minimum wages. It did not include any trade practice provisions. This is ? study of the Agreement, including its development and its administration by NRA. PEA policies "ere developed and administered by and tnrough the NRA Administrator, various boards and councils and field agencies. The Agreement was entirely voluntary and the only method oi enforcing compliance was the withdrawal of an employer's right to use the emblem adopted to symbolize participation in the Agreement - the well-known Blue Eagle. Taking everything into consideration, the ?RA was unquestionably a success and undoubtedly accompli sued as much if not more than was expected of it. Nevertheless, it is possible that the earlier and more definite development of policies with respect to the agreement, particu- larly as to substitutions for certair provisions granted industries and as to exceptions from full compliance with its terms, i-ould have made it even more effective. -VI ±1- 9619 INTRODUCTION In approving the National Industrial Recovery Act, (*) the President of the United States and the 73d Congress declared the existence of a National Emergency of widespread unemployment and dis- organization of Industry, which burdened interstate and foreign com- merce, affected the public welfare, and undermined the standards of living of the American people. To combat the declared rational emergency, the NIRA authorized the President, in addition to other "broad powers, to enter into agreements with, and to approve voluntary agreements "between and among, persons engaged in a trade or industry, labor organizations, and trade or industrial organizations, associa- tions, or groups, relating to any trade or industry, if in his judg- ment such agreements would aid in effectuating the policy of this title with respect to transactions in or affecting interstate or foreign commerce, and would be consistent with the requirements of clause (2) of subsection (a) of section 3 for a code of fair competi- tion. (NIRA, Title I, Section 4(a) Although this report is intended to be limited to a discussion of the President's Reemployment Agreement, its origin, development, -oro- visions, interpretations, rulings, explanations, substitutions, ex- ceptions, policies, administration, results and problems; it should be kept in mind that "The President's Reemployment Program' 1 ' discussed in Chapter I and the Agreement itself were also instrumental in developing and creating interest in Codes of Pair Competition on the part of the Public and especially employers who later became subject to provisions of approved Codes. (*) (Public - No. 67-73d Congress (H. R. 5755), approved on June, 16, 1933. 9819 ~mc- -1- CiiA?T3R i THB PRESIDENT'S BSSICPLO' i hT PRGGRAM i. .. administration for industrial rxqvbry A. ADMINISTRATOR FOR INDUSTRIAL RECOVERY Pursuant to authority provided in Title I, NIRA, the President, on June 16, 1933, appointed General Hugh Johnson to be the Administrator for Industrial Recovery, and aut lorized him on July 15, 1033, subject to the general approval of the Special Industrial Recovery Board, to appoint the necessary personnel on a permanent "basis, to fix their compensation, and to conduct such hearings and to exercise such other functions as were vested in the President by Title I, NIRA, except the approval of codes, or making agreements, or issuance of licenses, or exercise of powers con- ferred in Section 3 (e), 6 (c), 8 (b), 3 and 10. (Executive Orders #6173 and 46205-A) . B. SPZCIAL INDUSTRIAL R3C0VERY BOARD (June 16,. 1933 to December 13, 1933) 1. ORIGIN. Pursuant to authority provided in Title I, ITIRA, the President, on June 16, 1933, also appointed a Special Industrial Recovery Board to be composed of the following members: The Secretary of Commerce, Chairman; The Attorney General; the Secretary of the Interior; the Secretary of Agriculture; the Secretary of Labor; the hi rector of the Budget; the Administrator for Industrial Recovery and the .Chairman of the Federal Trade Commission. 2. ACTS PERFORMED PERTAINING TO THB PBA Acts performed by the Special Industrial Recovery Board pertaining to the PPA were: (a) Approval of NBA Bulletin -"1- "Statement By the President of the United States of America Outlining Policies of the HRA", June 16, 1933. (b) Voted that arrangements be made for using the 26 District Offices of the Department of Commerce to act as Begional Representatives of NRA. (HRA Release #40, dated July 10, 1333). (c) Approval of UFA Bull. .tin -','3- "The President's Reemployment Program," July .30, 1333. (d) Approval of 1TRA Bulletin $5- "Regulations On Procedure For 3' Local HRA Compliance Boards", September 12, 1333. (e) Approval of. HRA Bulletin #6- "Substituted Wages and hours Pro- visions of the PPA", October 14, 1933. (f) It is also possible that the Special Industrial Recovery Board considered the 21 3asic Interpretations of the PRA, later incorporated in HRA Bulletin ;f4. ORT9 -2- '• " 3. DIS30LUTI0H (CBEATIOl! OF TIE HATIG1TAL 3I-ERG-31TCY CCUl'CIL) . On December 18, 1952, the President ordered that all members of the Special Industrial Recovery Board, including the Attorney General, the Director of the Budget and the Chairman of the Federal Trade Commission, be designated and included as members of the National Emergency Council, created on llovernber 17, 1933, and that all' functions and duties of said Board hereafter be exercised and performed by said Council. (Executive Orders #6515 and #6433~A). : II. THE PLAIT AUD ITS DEVELOPMENT In signing the lav/ (national Industrial Recovery Act) on June 16, 1933, the President said: "The first part of the Act proposes to our industry a great spontaneous cooperation to put millions of men bade to their regular jobs this summer. The idea is simply for employers to hire more men to do the existing Fork oy reducing the work hours of each, man's week and at the same time paying a liv- ing wage for the shorter week. It is a challenge to industry which has long insisted that, given the right to act in unison, it could do much for the general good which has hitherto been unlawful. From today it has that right. It is not only the slackers within trade groups who may stand in the path of our common purpose. In a sense these groups compete with each other, and no single industry, and no separate cluster of industries, can do this job alone, for exactly the same reason that no single employer can do it alone. In other words, we can imagine such a thing as a slacker industry . This law is also a challenge to labor. Workers, too, are here given a new charter of rights long sought and hitherto denied. But they know that the first move expected by the Nation is a great cooperation of all employers, by one single mass action, to improve the case of workers on a scale never attempted in any nation. Industries can do this only if they have the support of the whole public and especially of their own workers. It is, further, a challenge to administration. We are relaxing some of the safeguards of the antitrust laws. The public must be protected against the abuses that led to their enactment, and to this end we are putting in place of old principles of unchecked- cormetition some new Government controls. Finally, this law is a challenge to our whole people. There is no power in American that can force against the public will such action as w e require. But there is no group in America that can withstand the force of an aroused public opinion. This great cooperation can succeed only if those 'who bravely go forward to restore jobs have agressive public support and those who lag are made to feel the full weight of public disapproval." )819 -o- In anticipation of Codas of Fair Co-Petition provided for in the Act, and the President's >olicy to put people back to work, to eliminate starvation wages and to consume the e::cess capacity of industrial olants resulting from mass production - prices soared far in advance of wages, employment and purchasing oov/er, as ople not in business as well as those engaged in a trade or industry began to buy products and store them in warehouses. The raising of wages and shortening of working hours increased costs. Companies, localities and industries were com- peting for trade and labor. It was necessary to develop a rule or authoritative standard for labor conditions in all industry and all localities at about the same time. All. industries were not organized into trade associations. Many applying; for codes were not ready to re- ceive them. Intrastate commerce and industry competed with interstate commerce and industry. Lnmediate action was imperative. At the outset it was apparent that the process required in approving codes which involved o reparation, submission and the holding of hearings was not conducive to immediate action, at least si:: weeks was required to put a major code through the mill. It was indispensable to do some- thing to avert a new collapse and crash. A shorter method was needed to bridge the time involved in bringing industries under codes. To bridge this gap and to expedite his reemployment program the President offered to enter into an individual agreement with each member of a trade and/or industry which became known as the President's Reemployment Agreement (?RA) . A. DISTRICT OPTIC BS, DBPARTL3LIT OP C0MLI3RC3. On July 10, 1933 the Special Industrial Recovery Board voted that arrangements be made to use the 26 District Offices of the Department of Commerce as regional ITRA representatives. ITRA. was to pay for extra work dene by the District Offices on" account "of services rendered ITRA (NRA Release #40). Managers of the Department of Commerce District Offices were called to Washington on July 11, 1933 by General Johnson for the pur- pose of determining how they might best cooperate with HRA and to re- ceive instructions by various ITRA officials regarding its plans, policies and purposes. According to liaison circulars addressed to District Offices by L. H. Peebles, Liaison Officer, Bureau District Offices and NBA., the functions of the District Offices relating to the PRA were: (1) Receive signed PRA's and render daily reports to ITRA as to the number received and number of employes covered. (2) Supply favorable ITRA information to the local press, chambers of commerce and other civic bodies. (3) Submit to ITRA all items of colorful publicity. (4) Issue simultaneously to the press and to post offices. Lists of Blue Ragle employers in metropolitan areas. OD1 o (5) Check signed certificates of Compliance with lists of PRA signatories; (o) Submit to Washington petitions for exceptions under Para- graph #14, PHA. (7) Furnish HRA with nevs stories on PRA campaign developments in their local areas, complaints, laoo.r troubles and local ITPA editorials. (3) Cooperate with Local PRA Compliance Boards in an advisory capacity only. In no case were they to issue arbitrary instructions or lay down rules and regulations. 3. THB PRDSIDBPT'S RPPP.PLOYIPdPT PDUCaTI jPAL CAi.PAIGH 1. 3UR3AU OF PUBLIC RBLATICPS With few exceptions .a law such as the ITIRA, affecting long es- tablished practices, nationwide in extent, cannot be adequately en- forced without an aroused and almost unanimous public op.inion. Realiz- ing thi^, General Johnson soon after his appointment as Administrator of the PRA planned a nationwide educational campaign designed to speed the return of prosperity through tthe expansion of consumer purchasing power in accordance with the principles set forth in the 1IIBA. Under the supervision of Mr. Charles S. Horner, director of the newly created Bureau of Public Relations, PRA Public Relations Division, the President's Reemployment Educational Campaign was launched on .' July 21, 1933, to arouse [public interest in the President's Reemploy- ment Program (PRA Re-lease #75) . Organization, speakers and press divisions were set up under Messrs. Prank R. Wilson, Louis J. Aber and Robert St. Clair respectively. The press throughout the country displayed prominently in their columns the aims, plans, information and data furnished by PRA in press releases. The radio was used extensively, speakers Bureaus were organized, shorts were prepared md featured on the screens of motion pi cut re and legitimate theatres, radio stars and corns of speakers annealed in every possible way to the patriotism of the people to support the President in this Drive in much the same manner as they used in "nutting across" the Liberty Loan Drives during the ,/orld War. 2. LOCAL 1TRA COiPnlTTBBS ; One of the first acts performed by Mr. Horner as Director of the PRA Bureau of Public Relations was to organize Local PRA Committees. Over the signature of General Johnson telegrams were sent to the President's of Chambers of Commerce or other leading civic organizations in cities 10,000 populations and ever, ■: nd letters in cases of cities under 10,000 requesting" them to take the initiative immediately in organizing campaign committees in their respective communities to be composed of the Mayor, the official heads of the Chamber of Commerce, Clearing House Association, Rotary, Kiwanis, Lions, Retail Merchants', 9819 -5- Federation ef Labor, Advertising Club, I deration of Women* a Clubs, Welfare societies, Ministerial Asaociation, Real Eatate Asaociation, *nd pny other civic organization which in their judgement was repre- sentative of any improtant element in the economic life of each con- muni ty. These communication a atated that the functions of the committees were to direct a campaign of education and organization which was tc be a part of a national movement to apeed the return of prosperity through the expansion of consumer purchasing power in accordance with the principles set forth in the HIRA. According to a report made by Mr. Horner, Local HRA Committees were established in some 6,230 towns and cities and he estimated that there were approximately 1,500,000 volunteer workers in the field work- ing under their supervision. C. DISTRICT RE COVERY BOARDS. On July 20, 1933, General Johnson and the Special Industrial Rooovory Board authorized the creation of one district recovery board of seven members to be appointed by the President for each of the 26 districts of the Department of Commerce, to consider, advise, and re- port to NBA on the progress nf the execution cf HIRA, and tc pa*33 upon such matters as were referred to thorn for action by HRA. . The member- ship of each District Recover:/* Board was to consist of one person pro- minent in each manufacture, retail trade, wholesale trade, banking, farming, labor, and social service who was willing to volunteer his services without, compensation (HRA Bulletin ->3) . The local District Managers of the Department of Commerce served as Secretaries to the Boards. D. STATE RECO VERY 30ARDS -. ... On July 20, 1933, General Johnson and the Special Industrial Recovery Board announced the creation for each state of a state Recovery Board of nine members to be appointed by the President. The board was to serve without compensation and it was authorized to select a chairman and secretary from among its own members (iTRA Bulletin #3) . The memberships wore to be truly representative of commercial, in- dustrial, labor, and civic interests of each state. The State" Recovery Boards were to advise and report upon the execution of IT IRA in their states and to receive and act upon all matters referred to them oy HRA or by their district boards. On August 9, 1933 General Johnson sent a telegram to the governor of each state submitting the names of those drafted by the President to serve as members of the State Board and re- questing the governors to organize the Boards and allocate a section of the state to each of the nine members. Meetings of State Recovery Boards were subject to call of the governor. At the first meeting each Board was authorized to decide upon and promulgate "its own rules and procedure. : 9819 -6- t • ■ l ' ' . ' - E. STATE HgCOVgjff COUNCILS s \" . '-'■'• • A State Recovery Council was also created by General Jolinsori and the Special Industrial Recovery Board on July 20, 1933, to be organized by and to serve in cooperation with each State Recovery Board. Upon application to the 'State Recovery Board "by any state labor, manufactur- ing, trade, civic, social-service or welfare association, organization, or club, the presiding officer thereof was entitled, ex officio, to membership on the State Recovery 'Council. The function of the council was to recommend to the board any necessary action with regard to the organization presided over by any member of the council, to request the services of the Board and of NRA -in any proper matter' to the end of perfecting and' strengthening any such organization, and to assist to make available to the Administration of NRA the services of any such organization (NRA Bulletin #3). ;.- . F. THE PRESIDENT'S 333MPL0YMENT DRIVE General Johnson on July 22, 1933 announced the -appointment. of : General Thomas S. Hammond, as Executive Director of the President's Reemployment Program, to carry out. the Reemployment Program, and to act as liaison.-between, the- Administrator and the Public in interperting NRA policies regarding Reemployment Agreements v/ith- industries and trades (NRA Release #91). ,. ; The President 's Reemployment Drive was announced on July 20, 1933 by General Johnson, and the Special Industrial Recovery Board to be launched on July 27,-1933 (NRA Bulletin #3 and #4). 1. THE ELPLOYERS 1 PART During the three days beginning July 27,. 1933, letter carriers del- ivered at each place of business, where three or more persons were em- ployed, a message f rom the. President, accompanied by a copy of the form for the PRA; a certificate of compliance form, and a return envelop addressed to the district office of the Department of Commerce. Any such employer failing, to receive this material by August 29, 1933 could obtain it from his local postmaster. . On July 29, 1933 it was announced that employers of fewer than three persons could obtain PRA forms at their local post offices (NRA Release #130). Because the first distribution of PRA forms- through the post offices was limited to businesses employing more than three persons, employers of less than three- persons- and even the local postmasters were of the opinion that small employers- were not expected to cooperate in the Pre- sident's Reemployment Program. This led to confusion and tended to delay the signing of. the Agreements as some postmasters at first refused to furnish PRA forms, to small employers who applied for them. (a) Earning And ;Se curing The Blue Eagle " The Employers' part was to act at once and earn the NRA Blue Eagle Insignia and display at his place of business by taking the following s t ctd s : 9819 -7- 1. Sign the PRA 2. Shorten the hours of factory workers to 3.') hours 'per week, and of all other employees to 40 hours p : er week (PRA Paragraphs ]^3 to #4) 3. Raise wages. (PRA Paragra lis #5 to #7) 4. Refuse to employ Child Lahor (PRA Paragraph #1) ; 5. Cooperate with the President (PRA. Pragraphs #8 to #13), 6. Mail the signed Agreement to the District Office of the Depart- ment of Commerce in the franked addressed envelope provided. 7. Put the Agreement into effect. 8. Sign the Certificate of Compliance provided, 9. Deliver the signed Certificate of Compliance to the local post office and receive the Dlue 3agle f the official 1TRA insignia awarded to employers cooperating with itRA for display to the Public in order that ehy coxild determine who were or were not cooperating. (b) Earning And Securing The Blue Eagle in Exceptional Cases (1) Where a Code Had Been Submitted (Paragraph #13, PRA) — - If a whole .trade or industry was. unable to live up to the PRA, the employer was instructed to get together at once, with other employers in the trade or industry and, in a group, submit a code of fair competition to 1TRA. Since it took some time for a code to be approved after its submittal, such groups were permitted to petition HEA to substitute wage and hour provisions of the sub- mitted code for PRA wage and hour provisions. In the event HEA elected to approve such substitutions the employer was allowed to put the substituted provisions into effect and he was instructed to add to his Certificate of Compliance the following clause: "To the extent of iTRA consent as announced, we have complied with the PRA by complying with the substituted provisions of the code submitted by the Trade/ Indus try. " If a substitution to the PRA was consented to by HRA, after the employer had put the PRA into effect and obtained the Blue Eagle, he was allowed to operate under the substitution without signing another Certificate of Compliance. (2) Where a Code Had Been At :> roved — If a code of fair competition had been approved by the Presi- dent, which was applicable to the employers' business, he was not required to sign the PRA to obtain the Blue Eagle, but he should sign a Certificate of Compliance, adding to it the following state- ment: "We have complied with the operative provisions of the Code f o r the_ JT rade/ Industry . 0R1 Q , -8- .. ■ (3) Cases Of Individual Hardship — (See Ch. II, Section 6— IT, paragraph. #14, Exceptions, Appendix G Paragraph. #14, FRA; Chapter III "r'RA Policies - Exceptions To Txie PE4»:; ) 2. THE EMPLOYEES' PART The employees' part v r as to do their test on the job and to cooperate with HRA and employers in peaceful adjustment of differences, and to share with the unemployed the benefits of the program. 3. THE, PUBLIC. IS PAST The public's part - and especially the part of women (who control the bulk of buying) was to support all those employers and employees who did their parts to put breadwinners back to work. An ITRA Consumers' badge of cooperation was printed' and awarded to every consumer in the U. S. who cooperated in the President's Reemployment Drive and signed the following statement of cooperation: "I will cooperate in reemploy- ment by supporting and patronizing employers and workers who are members of ITRA. 11 .-. G. PSA POLICY BOARD A PRA Policy Board was appointed on August"?, 1933 by the Admin- istrator of ITRA to (l) correlate the policies pursued in General Hammond's PRA Administrative and Mr. Horner's Educational Campaign, (2) consider and report .to ; : the National Recovery' Administrator upon petitions for substitutions to the PRA, and (3) to issue all PRA inter- pretations (See "PRA Policy Board" - PRA Policies, Chapter III.) 1819 -9- chapter II PEESIDEMT'S REEMPLOY!.! ! A ffl lEliElTT I. AUTHORITY Section 4(a), ? 1 itle I of the national Industrial Recovery Act (Public - i';'o. S7-73c. Congress) states: "The President is authorized to enter ^nto rgree lents with, and to an )rove voluntas rgreements bet-, mm and .-""ion', persons engaged in a tj-ade or industry, labor organizations, and trade or in'aistrial organizations, .a-ssociations or groups, relating to any trade or industry, if In his judg-ment such agree- ment will aid in effectuating the nolicy of this title rrith re*- spect to transactions in or affecting interstate or foreign com- merce, and will be consistent rith the requirements of clause (2) of subsection (a) of section 3 for p. code of fair competition." II. OHIGIil "On the night of July 10, the Industrial Advisory Board held a joint nee ting with the Labor and Consumer Boards". The subject of dxscussion was labor provisions of an emergency master blanket code. Considerable discus-sion ensued as to the hours ana wages that would be equitable under an emergency master blanket code. After several hours discussion in the general meeting it was decided tha* a sub- commit tee retire to er. adjoining room and consider the matter and report bach to the general committee. On this sub- committee "ere appointed Mr. Serard Swope and Mr. Alfred ?. Sloan, Jr., of the Industrial Advisory Board, Ilr. Uillian Green -nd Dr.. Leo yolman of the Lao or Board, and I Irs. Charles C. Bumsey of the Consumers Board. The sub-committee reported back to the general committee assembled the follo ,_ 'in~ suggested provisions: 1. Tor the emergency period no minors under 15 years of age. 2. Maximum 40 hours for stores, banks and all office employees, public utilities other than transportation (some mention was made of railroad clerks except those having agreements), salesmen, ex- cepting executives and traveling salesmen. Minimum wage - $15.00 per week. Distinction might be made according to the size and ■locality of the community. ■■ 3. Manufacturing industries - 35 hours per week in the 13 week period, with the right to work a maximum of 40 hours in c.ny 4 weeks of that period, and not more than 3 hours of any one day in any oiie week. 9819 -10- 4, Liinimura wage for unskilled. At first this was recommended as 7 olldws: 45 cents "by the Labor Committee; the Industrial Committee thought there should be a distinction "between men and women - 40 cents for Men and S3 for women. This was later agreed upon by the combined grouos as a minimum of 40 cents for every body without distinction as to se::. Considerable discussion ensued as to certain phases of the recommendations of the sua- commit tee, particularly (a) on the economic necessity of some distinction in wages as between male and female labor, (b) some mention as to the necessity of regional differences, and (c) certain discussion bearing on the need of reasonable time to rearrange schedules. Following these general discussions the provisions as outlined above were finally found to be acceptable to all of the 3oards. On the question as to whether or not the so-called '"blanket code' with its attendant plan of campaign as it had been outlined by General Johnson at the morning session should be superimposed, some members both of the Industrial Advisory Board and the Labor Board expressed doubts as to whether this treatment we,s advisable. However, it was the consensus of opinion that while our Board did not indorse the plan (as it was our understanding that the General had not requested from the Boards any definite recommendation on this particular feature), if the Recovery Administration decided to go ahead and put it into effect the]/ pledged their full coopera- tion in an effort to make it a success."* From the above and consultation with various 1IRA officials it appears ...that General Johnson developed most of the provisions of the PRA. Collaborating with General Johnson in this task were Secretary of Labor Perkins, Secretary of Commerce Roper, Attorney General Cummings and possibly other members of the President's Cabinet in addition to Messrs. Gerard Swope, Alfred P. Sloan, Jr., William Green, Dr. Leo T7olman, Mrs. Charles C. Rumsey, Donald R'ichberg, and Alvin Brown. In a. radio address of July 24, 1933, the President said, "This Blanket agreement carries the unanimous approval of the three Boards which I have appointed to advise in this, Boards representing the great leaders in Labor, in Industry, and in Social Service." III. NATURE The President's Reemployment Agreement was a voluntary agreement. There, wa.s no force used, unless public opinion and patriotism might be considered a.s such, to compel exiyone to sign the agreement. It was not Law and no one was subject to its provisions unless they had signed. * Industrial Advisory Board minutes of a joint meeting of the In- dustrial, Labor, and Consumer Advisory Boards, and General Johneon, July 10, 1933. 9S19 -li- lt ras a personal agreement between tin ier and the President to shorten -hours of employment and raise es, and by so doing to cooorate in a nation-- -ide program to raise n ;es, create .• read em )loyment and thus increase and spread yorchasing power. It has "been generally held by the courts to be cnforceao" 1 o oy en e:i loyec as a third party beneficiary. IV. PURPOSE A. TO 3RIDSE TIMS liEEDED TO BR Ii lG MEI.C3ERS 0? TRADES Alfl) IiPUSTRIES unde r code s oe air coi ^^ti fioir At the outset it van apparent that the orocess required in approving codes, axithorized in Section 3 of the Act, which involved preparation, submission and the holding of hearings was not conducive to immediate action. At least six weeks '-ere required to put a major code through the mill. To avert a. nen colla/ose and crash in trades and industries, it was imperative that a shorter plan be evolved. A preliminary step in the plan for industrial self-government was necessary. 3. TO ELININA TE CHILD LABOR Widespread cut-throat competition with its resulting low prices caused manufacturers and those engaged in the trades to cut their costs to the lowest oossible minimum. One method of lowering costs was the use of child labor. , C. TO SPREAD PURCHASING POWER By spreading employment", reducing working hours, raising the general level of wages. Increasing unemployment, cutting wages and greatly increasing the working hours of those still working drastically curtailed purchasing power. D. TO CREATE PUGLIC OPIN ION With few exceptions a law as broad as the national Industrial Re- covery Act, affecting Ion;; established practices, nationwide in extent, cannot be adequately enforced without an aroused and almost unanimous public opinion. E. TO RELIEVE UNF AIR COIIP ETITION "BETWEEN PURELY INTRASTATE A1D3 . INTERSTA TE ENTERPRISE Inasmuch as the provisions of the Act limited enforcement of its provisions to businesses engaged in or affecting interstate commerce, the problem of fitting purely intrastate business into the President's Emergency Reemployment Program became one of paramount importance., The members of trades and/or industries engaged purely in intrastate commerce were free to do more or less as they plea.sed unless state legislatures amended state laws to conform to the National Industrial Recovery Act. 9819 -12- TO SfflEBMIM mWTMH Oj ^ALSS ATO/OR irniMHm. r.«i..t..ro, ^Ir^^^X^'r^S^: 1 ^ T r T h unavoidable hardship ,..», able to de tern no the SecSic ^„m! ^ , • to an individual trade or industry. specific problems peculiar S. TODSVELCP_A2E3_0E STAinDAPS POH L/BOS CO-'nTT-Tn--q re' .,, «o.^,„ The code process required too rmch tine to do this. H. TO EHBMBB Mffiras 0? toils' ^ nynTSTBT^ ^ nA ^„ i.ae -orovisions of earl-'- codpq PTimnT + + Q ,q ^ . * i for approval indicated thai ttey"n t yet La£ ta T 1 f^ trieS or less drastic changes remii-ed t» ,l if -, : aCCe:t the nore Heemnloyaent Agreed! TTo£e nunoet o' t- " > "^ • ° f ^ Presite "' = not have as,,ell or g ani,ed trade ToIULIIT^^^IZ^. Paragraph ITo. 11, PM states: »To cobperntP tr *■>« -f .i , * ^iS?^:ssioiei4: i :nd°r:" i r r 1 ™ ^ "^-tr Par ? ^-ih-n 1. ^ ? 17 event oefore September 1, 1935." ^ara^rapn no. 13, P±U states: "This h^pptip^ ^n ' x ^°* HRA so elects, upon subnission oTl co^^^^T' ' ^^ ^ subject and substitution of a™ o* i?° 1 ,, ^ f S ™ der ^ned is of this agreement " TIip , T ™ ?*i P rovi sions for any of the terns drasMr th^T . n 3 and h0ur Provisions of the PPA nere more drastic than vras contemplated for the codes l^i w i„ ■ ^l Unless something were dore to -oersunflp -n +^ * ■. operate tinder , PT , + o^ • • persuade all trade and industries to the s^e tino Tn '^ "*&* md max ™ hours at approximately ed coTs would be I" "TT* t0 °"^^ ***** the Provisions of ap^rov- r™ ! r Placed at a competitive disadvantage because t-hf wage and hour provisions of the codes terwW tn ! De _cause tne jr wx out., uuues nenaea to increase their costs. V- PR OVISIOHS WJ Wjy m nxSWS_imm!mm AffiPPi^T. follows: Pr ° VlSi0n ° f the ^eenent in full, as originally announced, that ^^&^?si^*^£z^, date of approval of a Code of Pair Co"petmoh to which Ke^s ^iect the undersigned hereby agrees with the' President as fellows: ° ' -ears'of ^'"S* »•' W33 ' Mt *° *?1) Fiscal Year-End Inventor ies - See "Paragraph #2, PRA" , " T " smra. ( c ) managers or Executives Receiving Ilore than $55 Fer Week "The maximum hoars fixed in paragraphs #2 and #3, PRA do not apply to an employee receiving more than $35 per week and who is acting primarily, although not wholly, in a managerial or executive capacity." (Basic Interpretation #15, General Johnson, NRA Bulletin #4) ( d) Professional Person s "The following are included, among' professional persons within the meaning of paragraph #4, PRA: Newspaper reporters, editorial writers, rewrite men and other members of editorial staffs, internes, morses, hospital technicians, research technicians." (Basic Inter- pretation #19, General Johnson, NRA Bulletin #4) (e) Towns Of Less Than 2500 Population Certain employers in towns of less than 2500 population — See Executive Order #6354, #6710 and Administrative Order #X-72. (f) Owner-operated Stores - See Appendix "G" S. PARAGRAPH #5, NINII.luT WAGES APPLICABLE TO NON- INDUS TRIAL WORXERS ( PARAGRAPH tt2, EMPLOYE S) "(5) Not to pay any of the classes of employees mentioned in paragraph (2) less than $15 per week in any city or over 500,000 population, or in the immediate trade area of such city; nor less than $14.50 per week in any city of between 250,000 and 500,000 population, or in the immediate trade area' of such 'city; nor less than $14 -oer week in any city of "between 2,500 and 250,000 popula- tion, or in the immediate trade area of such city; and in towns, of less than 2,500 population to increase all wages by not less than 20 percent, provided that this shall not recjuire wages in excess of $12 per week. " 1. OFFICIAL EXPLANATIONS - See "Paragraph #5, PRA", Appendix "G". 2. EMPLOYMENTS TO WHICH PARAGRAPH w5, PRA MINIMUM WAGE PROVISIONS ARE APPLICABLE - See "Paragraph #2", '"B" supra. 3. EMPLOYMENTS NOT INTENDED TO BE COVERED 3Y PRA - See Appendix "G", and "Professional Occupations", Appendix "G". 4. EXCEPTIONS TO AND EXEMPTIONS FRON PRA NINIklTi" WAGE PROVISOES - See "Paragraph #4, PRA - 'Emergency Maintenance and Repair Work' and 'Exemptions from Maximum Hoar provisions', "T" supra; also see 'Apprentices', Part-time employees?, Substitutions, and General Explanations etc., Ao'oen&ix "G" . )819 -20- 5. IMiEDIATETRADE AREA - , ... . . ...... "Immediate Trade Area is the area in which there is direct retail competition. In case of question, the decision shall be made .b'y the local chamber of commerce or similar organization sub- ject to review by the State Recovery Board. 11 (Basic Interpretation #13, General Johnson, NRA Bulletin #4) F/ PARAGRAPH' #6, MINIMUM WAGES APPLICABLE; T.0 INDUSTRIAL WORKERS ; ( PARAGRAPH #3, EMPLOYEES ) "(6) Not to pay any employee of the classes mentioned in paragraph (3) less than 40 cents oer hour unless the hourly rate for the same class of work on July 15, 1929, was less than 40 cents per hour? in which latter case "not to pay less than the hourly rate on July 15, 1929, and in no event less than 30 cents per hour. It is agreed that this paragraph establishes a guaranteed minimum rate of pay regardless of whether the employee is compensated on the basis of a time rate or on a piecework performance." 1. OFFICIAL EXPLANATION - See "Paragraph #5, PRA" ," Appendix "G". 2. EMPLOYMENTS TO WHICH PARAGRAPH #6, PRA MINIMUM WAGE PROVISIONS ARE APPLICABLE - See"' "Paragraph #3" , "B" supra. 3. EMPLOYMENTS NOT INTENDED TO BE COVERED BY PRA - See Appendix "G" and "Professional Occupations", Appendix "G". 4. EXCEPTIONS TO AND EXEMPTIONS FROM PRA. 'MINIMUM WAGE PROVISIONS - See "Paragraph #4, PRA - 'Emergency Maintenance and Repair work' and 'Exemptions from Maximum Hour Provisions', "D" supra, also see 'Apprentices', 'Part-time employees ' , Substitutions and General Explanations etc. Appendix "G". 5. HOURLY RATE - See "Earnings", Appendix ,1 G". G. P ARAGRAPH #7, COMPENSATION FOR EMPLOYMENT "(7) Not to reduce the compensation for employment now in excess of the minimum wages hereby agreed to (notwithstanding tnat the hours worked in sich employment may be hereb^ reduced) and to increase the pay for such employment by an eq\ii table readjustment of all pay schedules." 1. OFFICIAL EXPLANATION AMD BASIC INTERPRETATIONS - See "Paragraph #7, PRA", Appendix "G". 2. PRESERVATION OF WAGE DIFFERENTIALS "Question-: We have been asked whether Paragraph #7,. PRA re- quires an increase in wages all along the line above the minimum, entirely apart from- shortening of hours. In other words, the ques- tion is asked whether Paragraph #7, PRA requires a preservation, in some degree at least, of wage differentials all the way up." (F. S. Pollak, October 18, 1933) "Anpwer: Implication is that higher wages should be adjusted by collective bargaining if possible to be in line with increase in minimums. 11 (D. R. Richberg, October 18, 1933) 9819 .. 1.. 3. PROBLEMS Many problems aroi p. : ' of Pari • i v7, PHA Ln spite of Basic Int< r '■ L, ;or mrated Ln NBA Bulletin 4 . Some idea of tin ••■ : Ln the following excerpt from the minutes of a neel of bhe Industr s i Advisorv Board hold August 3, 1953: "The I it co"e, as finally presented , contained several additions which had never been submitted to bhe Advisory Boards ana that some of the present confusion is due to the insertion of these paragraphs. This was especially true as to Paragraph : }7 , and it was stated that no member of the Board km ■ anything about this paragraph. " Further indications of the confusion resulting from Paragraph -1-7, P3A will be found in the EBA Legal Division (Franklin S. Pollal:) memoran- dum dated August 7, 1933, incorporated in the Appendix. H. PAIAG-TIAPH #8. AlmHStDgSBFUGS "Hot to use anv subterfuge to frustrate the spirit and intent of this agreement which is, among other things, to increase emplov- ment by a universal covenant, to remove obstructions to commerce, and to shorten hours and ! ;o raise wages for the shorter week to a living oasis. " 1. OFFICIAL EXPLAITATIOr - See "Paragraph #8 , PHA" , Appendix "G-". I. ?ja a .G-3AP~l tt9, AlTTIPBOriTIElhC 1 "(9) Tot to increase the price of any merchandise sold after the date hereof over the Trice on July 1, 1903, "by more than is made necessary by actual increases in production, replacement, or in- voice costs of merchandise, or by taxes or other costs resulting from action taken pursuant to the Agricultural Adjustment Act, since Julv 1, 1933, e^l, in setting such price increases, to give full weight to probable increases in sales volume and to refrain -from talcing profiteering advantage of '.he consuming ■oublic." (9819) . -22- 1. OFFICIAL EXPLANATIONS - Sec "Paragraph #S, Appendix "G. " 2. PRICES "where the July 1, 1933, price was a distress price, the employer signing the agreement may take his cost price on that date as the base for such increase in selling price as is permitted by Paragraph #9." (Basic Interpretation #5, General Johnson, NRA Bulletin #4) J. PARAGRAPH #10, COOPERATION "(10) To support and patronize establishments which also have signed this agreement and are listed as members of N.R.A. (National Recovery Administration)." 1. OFFICIAL EXPLANATION - See "Paragraph #10, PRA, ,1 Appendix "G." K. PARAGRAPH #11. CODES "(ll) To cooperate to the fullest extent in having a code ©f fair competition submitted by his industry at the earliest possible date, and in any event before September 1, 1933." 1. OFFICIAL EXPLANATION - See Paragraph #11, PRA," Appendix "G. " L. PARAGRAPH #12. APPROPRIATE ADJUSTMENTS "(12) Where, before June 16, 1933, the undersigned had con- tracted to purchase goods at a fixed price for delivery during the period of this agreement, the undersigned will make an apprspriate adjustment of said fixed price to meet any in- crease in cost caused by the seller having signed this President's Reemployment Agreement or having become bound by any code of fair competition approved by the President." ..1. OFFICIAL EXPLANATION - See "Paragraph #12, PRA," Appendix "G. " 2. RELIEF TO GOVERNMENT CONTRACTORS Relief to government contractors, in the event costs of performance of such contracts were increased as a result of compliance with the PRA and codes of fair competition, was provided by the 73rd Congress and the President. See "Public Act #369, Appendix "H. " M . PARAGRAPH #13. T ERMINATION OF AND SUBSTITUTIONS TO THE PRA "(13) This agreement shall cease upon approval by the President of a code to which the undersigned is subject; of, if the N.R.A. so elects, upon submission of a code to which the undersigned is subject and substitution of any of its provisions for any of the terms of this agreement." 9819 - 1. OFFICIAL EXPLANATION - See "Paragraph ^13, PRA," Annendix "G." (a) '"Members of a trade cr industry onerating under the PRA, or rmorovpd substituted nrovisions, at the time of annrcval of a permanent code by the President may con- tinue onerating under the PRA or a^nroved substitution until the effective date of the code, or may begin oner- ating under the .vagc and hour nrovisions of the code at any time between the. date. of a-oprcval by the President and the effective date." (General Johnson, October 25, 1033) ' t /. (b) "It is the opinion of the Legal Division, NRA, that the PRA does not cease until the signatory to the PRA is bound by the nrovisions of a code which has become effective." (Stanleys. Surrey, February 7, 1934) ( c) "A non-signatory of the PRA ought to sign the PRA before he may elect as to whether or not he will abide by the PRA or by the code during the neriod between annroval and effective date of. the code for his industry." (National Compliance Board, February 17, 1934) (d) "In cases where a code exempts a person from its nro- visions with resnect to certain of his operations, then there is no code to which he is subject with resnect to those onera.tions and the signatory of PRA should be required to. comply with such nrovisions of the PRA as. relate to those operations." (National Compliance Board , February 16, 1934). Also see Chapter" III, Section VIII.,. "PRA policies.- Substitutions To" the, PRA, 11 . ... N. PARAGRAPH gl4. EXCEPTIONS "(14) It is agreed that any nerscn who wishes to do his uart in the President's reemployment drive by signing this. agreement, but who asserts that some particular nrovision hereof, because of neculiar circumstances, will create great and unavoidable hardship, may obtain the benefits hereof by signing this agree- ment and putting it into effect and then, in a petition ap- proved by a representative trade association of his industry, or other renresentative organization designated by N.R.A. , may apnly for a stay. of such nrovision pending a summary investi- gation by N.R.A. , if he agrees . in such application to abide by the decision cf such investigation. This Agreement is entered into pursuant tp Section 4(a) of the National Industrial Recovery Act and subject to all the terms and conditions re- quired by Sections 7(a) and 10(b) 'of that Act. 9819 -24- I. OFFICIAL EXPLANATIONS AND BASIC INTERPRETATIONS — See "Paragraph #14, PEA," Appendix "G-" also see Chapter III, Section X, "PRA Policies - Exceptions To The PRA." VII DURATION OF THE AG-REEIIENT.. A. ORIGINAL AGREEI/ZENT (August 1, 1933 — December 31, 1933) Signatories to the President's Reemployment Agreement agreed with the President to comply with its provisions (l) during the period of the President's Emergency Reemployment Drive, August 1, 1933 to December 31, 1933 (opening paragraph of the Agreement) 6r (2)" until approval by the President of a code of fair competition to which the signatory was subject (paragraph 13, PRA) or (3) if the NRA so elects, upon submission of a code to which the signatory was subject and substitution of any of its provisions for any of the terms of the Agreement ( paragraph 13, PRA). The Legal Division, NRA, on February 7, 1934, interpreted the phrase "approval by the President of a code to which the under- signed is subject" to mean that the Provisions of the code must be binding upon the signatory to the PRA before he is released from the obligations of the Agreement. Therefore, the PRA does not cease in such cases until the signatory to the PRA is bound by the provisions of a code which has become effective . (See Paragraph #13, Termination of and • Substitutions To The PRA," p. 31). ■ As mentioned the President's Agreement was a temporary measure to tide over the time until all employers and employees could cooperate under codes of fair competition. A signatory to the PRA agreed to cooperate to the fullest extent in having a code submitted by his industry at the earliest possible date, and in any event before September 1, 1933 (paragraph 11, PRA). 3y limiting the original Agreement to December 31, 1933, the Administration evidently hoped to have all employers operating under codes by that date. This proved to be impossible so the President offered to extend the Agreement. ' B. FIRST EXTENSION (January 1, 1934 to April 30, 1934) On December 19, 1933, the President offered to extend the Agreement as follows, * •• ' • "I hereby offer to enter into the President's Reemploy- ment Agreement with every employer, insofar as he is not covered by an approved code of fair competition, for a further period of 4 months from January 1, 1934, to April 30, 1934, or to any earlier date of approval of a code of fair competition to v4iich he is subject." (Executive Order ^6515) 9819 Executive Order #0515 specified further t hat, "all substitutions and exemptions arvoroved,. and all exceptions granted to particular employers, before January 1..1934, will apply to the President's Reemploy- ment Agreement as so extended" and , "Employers who shall have already signed the President 's Reemployment Agreement before. January 1, 1934, may accent this offer of extension by display of the Blue Eagle on or after January 1, 1934. Employers who shall not have signed the President's Reemployment Agreement befpre January 1, 1934, may accept this offer of ex- . .tension by signing the President's Reemployment Agreement.' C. SECOIH) AIsD EIITAL EXTENSION (May 1, 1935 to the date the signatory became subject to an approved code of fair com- petition) • , On Aoril 14, 1934, the President .again offered to extend the PRA as follows :- "I hereby offer to enter into the President's Reemployment Agreement with the head of every business establishment as to any part of his business not subject to an approved code of fair competition,, for a further period beginning May 1, 1934|. and ending, when that part of his business becomes subject ,to an approved code of fair c omoetition. n . (Executive Order #6678-A) : Executive Order #6678~A specified further that, "all substitutions and, exemptions approved, and all exceptions granted to particular employers, before May 1, 1934, will apply to the President's Reemploy- •raent. Agreement as so extended" and, "Employers who ■ shall have signed the President's Re- employment Agreement before May •!, 1934, may accept this offer of extension bx display by them shall be deemed an acceptance of this offer. Employers who shall' not have signed the President's Reemployment Agreement before May 1, 1934, may accept, this offer of extension by signing, the. President 's Reemployment Agreement. " ..... 9819 -26- D. PRESENT STATUS "The contract (PRA) formulated by the offer extended by Executive Order No. 6678-A and accepted by dis- play of the Blue Eagle after May 1, 1934, must be construed to terminate at the latest on June 16, 1935. This contract was entered into by virtue of a statute which by its terms was to expire no later than June 16, 1935. We cannot consider that employers . intended to bind themselves not only for the specified period of the Act, but for any subsequent term which Congress may specify by amendment of the Act. Executive Order No. 7076 dated June 15, 1935, continues in effect all existing' Executive Orders so far as consistent with the recent amendments to the N.I.R.A. I do not think this can be construed to extend the P.R.A. since if we consider that the original offer of an agreement carried the implied term that the agreement was to extend only until June 16, 1935, the extension of this Executive Order has no effect. Therefore, I am of the o-oinion that the P.R.A. could not in any event have been deemed to be binding upon any employer beyond June 16, 1935, in the absence of any acquiescence on his r>art and on the President to an extension of the agreement. . ; However, I would go further. It seems to me that the . P.R.A... must be deemed to have been abrogated by the President on May 27, 1935. On that date following the Schechter decision, the President announced to the public, through Donald R. Richberg,. that the en- forcement of all existing codes would be suspended, and this announcement carried the clear inference that no further codes would be approved; at least until further legislation is enacted. It was clearly the intention of the P.R.A. (at least of its latest ex- tension) that it should be binding upon that small .. minority of employers who were not subject to arroroved codes. They would be placed at no competitive disad- vantage since most other employers were subject to codes. The agreement in terms was to terminate uoon the a-oproval of a code. When on May 27, all codes . were in effect abrogated and the possibility of the approval of further codes was eliminated, I think we must deem the P.R.A. to have been suspended. Whether the Schechter decision invalidated the P.R.A. retroactively is another question and one which will require careful' study. The same -problem would be involved if we wish to pro-cose another P.R.A. at the present time." (George Bronz, Legal Division, June 21, 1935) 9819 CHAPTER III PLOY T . ;i"T POLICIES I. I. ITIAL PRA POLICIES Initial PRA policies ■" re d.eve] ■ the A'ri- is'trator in collaboration with the Special Lidustrial Recovery Board., appointed 'by the President (£:: p c:.t ive Order #5175, June 13, 1933) '■•■rich ar^roved ilUA Bulletins ITumbers 1, S, 3, , ■ i d the three Advisor;/ Boards (Industrial Advisor/ Board', appointed by the Sec-e'tary of Connerce; Lai or Advisor" 1 3oard, appointed ~jy the Secretary of Labor; Consumers Advisory Board, appointed "by the Administrator). Educational policies were developed and. promul ;ated by the, HBA Public Relations Division under the supervision of I r. Charles S. Horner* Policies concerning the President's Reemployment- iProgram were developed and promul- gated by General Thomas S. Hammond, Executive Director of the President's Emergency Reemployment Program, Petitions for., permission to substitute provisions of submitted codes for provisions of the PRA, authorized in Paragraph , #13 , FRA '."/ere in the beginning handled by Deputy Administrators appointed to consider proposed codes submitted to the Administration for approval. This procedure caused general confusion and resulted in the establishment of the PRA Policy Board. II. PRA POLICY BOARD (August V, 1933 to October 26, 1935) A. OKI C I N AR1? PUB.E0S.S On Auust 7, 1955, the Administrator appointed the PRA Policy Board to (1) correlate the policies pursued in General Hammond's PRA Administration and Hr« Horner's Educational Drive (2) consider and report to 'the National Recovery Administrator upon petitions for substitution^ of code provisions for PRA provisions (Paragraph #13, P5A) and (5) to issue all interpretations of. the PRA. (Office Order Po. IB, dated August 7, 1933). B. O^GA HAT 1 05 The personnel of the original PRA Policy Board consisted of (1) Chairman anc Administrator's Representative, Robert . T . Stevens, (2) a representative of Labor assigned from the Labor Advisory Board, »T&* S«, Leiserson, (3) a representative of Industry assigned by the Industrial Advisors' Board, Edward R. Stettinus, Jr., (4) Secretary and. Liaison Officer ait 5 the Industrial Mediation Board, Robert K. Straus, and (a) a legal Advisor to the Chairman selected from the ERA Legal Division, Kilbourne Jo mston. C. TBRLI5ATICII J: . The PRA Policy Board continued to execute the functions mentioned above until the establishment of the National Compliance Bo-rd-on October 26j 1933, at vrhich tine the PRA Policy Board, was* abolished 'and all of its duties and functions necessary to be jerformed were transferred to the National Compliance 'Board. (Of ice Order #40, October* 26, 1933). 9819 -28- II I; BLUE EAGLE DIVISIGH MA (August in, 1933 to October 23, 1353) A. QUI GUT AHD ORGANIZATION According to Office Order #2 j dated August in, 1933^ signed by T. S. Hammond, Executive Director, President's Repmaloyment Program, the designation of that of i ice (President's Reemployment Program) .was to "be "Blue Eagle Division, L~RA. '! The original Bine Eagle Division consisted of 8 sections: (l) Executive Section, (2) Information Section, (3) Recovery Boards Section, (4) Comol^ints Section, (5) Interpretation ■Section, (6) Exceptions Section, (7) Trade Association Section, (S.) Insignia Section - Although the Insignia Section is included in the Blue Ea'le Division set up as outlined in a Bl.ie Eagle Division memorandum d^ted August 11, 1S53, there appears to "be some question regarding the Insignia Section coming under the BIup Eagle Division, as the '.Section is omitted from all ' subsequent Blue Eagle Division 'memoranda* (See "Blue Eagle Division, NRA, " Appendix "B") B. SECTIONS HANDLING PRA POLICIES The sections of the Blue Eagle Divisions handling PRA policies were (l) Executive Section, ■which was charged with clearin" all administrative matters regarding decisions of policy either within th° Division or from the PRA Policy Board (BiE.D.r* #1); (2) Interpretation Section which disseminated information regarding the obtaining of the Blue Eagle.: and elaborated, on basic interpretations incorporated in ERA Bulletins #4 and those made "by the PRA Policy Board (B.EiD.If.. #2 and 10)';' and. (3) Exceptions Section, which was designated to receive all petitions for exception, authorized under Par-graph #14, .PRA. .(B.E.B.i:. #2 ^ihd #LO). C. REORGANIZATION Office Order #55, dated. September- IS , 1' 33, authorized, a reorganizati and colsolidation of the Blue Eagle Division by L'r. Frank Healy appointed to take over the duties heretofore performed "by General Hammond. According to B, E.D.Li. #13, September 30, 1933, all sections of the Division were abolished, and 1. P. Barnsworth, Assistant Counsel, Blue Eagle Division was assigned the responsibility for interpreting and e:rplaining the PRA and substitutions allowed thereunder^ Although it was not stated, his respon- sibility was subject to final approval of the PRA Policy Board*. Also see Appendix "C"i D. . TERMINATION With the establishment of the NRA Compliance Division on October 26, 1933, the Blue Eagle Division, NRA, became the Blue Eagle Branch of the Compliance Division. (Office Order #40). IV. COMPLIANCE DIVISIOI: MRU (October 26, 1953 to August 29, 1935) A. ORIGIN ANDNBLUE EAGLE BRANCH On October 25, 1953 there was established in NRA, a Comaliance Divisior headed by a national Compliance Director. The Blue Eagle Division-, NRA, became the Blue Ea~:le Branca of the Compliance Division and continued in charge of LIr> Pranh Healy, Chief, (Office Order Kb-. 40) 0] • - . The 31j.e Ea'le c , ' Li .ce Division . onsib] or evil natters concernin : t te ERA, incl LC-in i •.'• r >r< t ; ■ ■ ■ , e: ce M I icL- permission .to .operate ir lhio*.i Contr cts, complaints of non-compliance and correspondence it i State, District and Local 3oerd.s. (Gjffice !*enoran- dum dated October 28, 1953)* Also see "Compliance Division, "MA", Appendix "D". 3. LAPP" AM .df T 'lSIPAirE MA CMS On Povember 24, 1933, ' ie lue Eagle Branch, Compliance Division, was amalgamated and consolidated in the Labor, Trade Practice and Administrative Branches o the Compliance Division (0. 0. #45 and C.D.O.h. #1)., The Labor Branch handled petitions for exceptions from the PRA (authorized in Paragraph #14, FILA) and the Administrative Branch handled correspondence and information (interpretations) regarding the FRA (C.D.O.M. #l). C. ANALYSIS BRANCH The Analysis Branc] , Compliance Division, established April 12, 1934, absorbed the Personnel and daties of the Labor and Trade Practice Branches abolished (0. 0. #85) PEA correspondence and interpretations r, ere also handled by the Analysis Branch* D. TERLITATI CN The personnel, records and material of the Compliance Division, NRA Regional and State .Offices rare transferred to the Field Division, MA, on August 29, 1S55. (Office Instruction #21) V. NATIONAL COMPLIANCE BOARD (October 26, 1933 to i ay 21, 1934) A. 5 1 GIN AID PURPOSE A National Compliance Board iras established in the NBA on October 26, 19C5 for the purpose of: (l) performing CL1 necessary daties and functions of the FRA Folic;/ - Board, abolished, (2) upon reference of complaints from the National Compliance Director, undertaking further attempts at adjust- ment, recommend exceptions, remove, the Blue Eagle, or recommend reference to the Federal Trade Commission or the Attorney General for appropriate action (Office Order #40). Although Office Order #40 and Office "femorandum dated October 28, 1933, stated that no division of MA other than the Blue Eagle Branch, Compliance Division, should attempt to interpret, the PRA* all such, interpretations were considered and approved by the" National Compliance Board. Also see "National Compliance Board", pages 137 - 139, Be ORGANIZATION The personnel of the ori ;in,l Corn )li nice Board r 'as abolish-d and its functions and 'oersonnpl her transferred to the Compliance Division, HRA. (Office Older #90). VI. ADVISORY COUHCIL 9 CGLPLIAHCi DIVISIOH, 3RA (l"ay 23, 1934 to June 8, 1934) Dr. Altmeyer, Chief of the- Compliance Division, 7RA, on hay 23, 1934, requested and authorized the members of the National Compliance Board (abolished) to continue to serve as Councilors until further notice. (First meeting Advisory Council, Compliance Division HRA). The functions andduties remained the same as thos^ delegated to the former National Compliance Board. Captain Eenry Williams yto.s appointed Chairman and Messrs. Behne3r and Rumley continued as Labor and Industrial Advisers, respectively. VII. COI.TLIAHCE CGUhCIL, NRA ■ On Jiine 8, 1934, .the name of the Ac"visor.3 r Council, Coimliance Division, 1JRA, was changed to Compliance Council, 1\!RA, because of conflicts with other Advisory Councils. Captain Henry Williams continued as Chairman of the Compliance Council until his resignation on September 5, 1934. Mr. Rumley continued as Industrial Adviser and also acted as Chairman. Later, a second Coimliance Council, RRA, was organized to assist in disposing of the large volume of cases which had accumulated. i.Ir. Rumley served as Industrial Member and Chairman of one, and Mr. Behney as Labor Member and Chairman of the other. ' VIII. SUBSTITUTIONS .20 THE PRESIDENT'S RiEMPLOYuEMT AGREEMENT A. AUTHOR IT? The authority? - for allowing trades and industries to substitute certain provisions of codes of fair competition, submitted by them for approval by HRA, for corresponding provisions of the PRA, was incorporated in Paragraph #13, PRA, which stated: "This agreement shall cease , if the I-1RA so elects , upon submission of a code to which the under si ;;ned is subject and substitution of any of its provisions for any of the terms of this agreement". In the beginning the optitions submitted by trades and industries to substitute proposed code provisions for PRA provisions were handled by the Deputy Administrators handling the particular codes. This procedure resulted in general confusion and lack ox uniformity in policy and resulted in establishment of the PRA Policy Board on August 7, 1933. Among other duties assigned to this board, it was< to "consider and report to the National Recover^ Administrator upon petitions for substitutions of code provisions for PRA provisions under Section 15, PRA (0.0. #18)". 9819 3. LODIBICATTCBC C? SUBSTITUTIONS In addition to approving substit il lp P"BA, ' ~"A in " nurabar of instances approved - c bit itions, as for example, the ^Modification of the Substitution "'or Par r T #3, PBA (maximum hours applicable to industrial workers) J o the Meat Packing Industry 11 , approved lr r General Johnson on Jane 13, 1934 for a period of four weeks and subsequently errfcende : L] January 10, 1S35. The ' odificaticn mentioned was approved on recomendation of the Federal Surplus Relief Corporation, in order to further the energency cattle ouying and beof canning program for relief of the drought situation, and on account of the difficulty of obtaining and training additional employees to meet the emergency situation during the summer and fall of 1934, c. ibsvruciiobs bob suzbi tibg petitions bob substitutions 1. IF A CODE .7AS OB 7ILZ ".."ITH I'Hii] CGKTRGL DIVISIG1T, K?JL The petitioner ;'?s instructed to: (1) obt-tin the code or a copy thereof, (2) prepare a "petition for BRA consent to substitution", in quadruplicate special forms provided, setting out in full the code provisions to "be substituted and th n PRA paragraphs to be eliminated by number, and (2) present the code an-" the petition, together rtith credentials shbwing that the petitioners were duly constituted representatives of the trade or industry to the Secretary of the PRA Policy Board. 2. IP NO CODE HAD B£EU SU3LUTTJ33 TO THE C0IITH01 DIVISION The petitioner was advised: (1) that a. basic code must be submitted before the PRA Policy Board could consider any oetition (to expedite the submission of a basic code for this purpose a model form was provided.), (2) to frame its code as closely to the model, form as practicable, in order to expedite the consideration of the petition by the Board, and (3) •that the so-called "■basic code" need not be submitted to the Control Division, BRA, but eight copi c es should be submitted, directly to the Secretary of the Board as sot forth in (3) above. D. POLICIES FCLLOBED BY THE PNA POLICY 30 AT) III CONSIDERING petitions bgr sib, st i r ddi oNS to ibb pra PRA Policy Board instructions to petitioners were "as follows: 1. PROPOSED CODE PROVISIONS VS. PRA PROVISIONS "BRA will not elect to approve the substitutions of the provisions of Codes for Paragraphs of PRA unless such Code Provisions cover the same ground as the PRA paragraph and unless the substance of such provisions are within the spirit of the PRA, i.e., to shorten hours and raise wages to increase employment and purchasing power to approximately the 1929 level." 2. ABSENCE OF CODE F>G7ISIG3S "NRA allows no modifications of PRA if there is no Code orovision which can be substituted. The PRA Folic3^ Board has no jurisdiction to act in such cases", 9819 „70_ 3. FUUCTICUS OF PHA POLICY BOAHD "The only function of the Board is to pass on the applicability of the Coo.e provisions as written. This does not allow an]- bargaining or negotiating or persons.!, interviews. Such a procedure is not only inappro- priate, "but it does not allow for. the prompt treatment to which all petitions are entitled",. However, the prohibition was waived in fflany instances. 4. PROCEDURE "To cooperate with those who are willing to amend the wages and hours provisions of a submitted code so as to have it within the spirit of PHA for substitution purposes, the following procedure has been adopted: (1) Obtain from the reception clerk a work sheet, fill this in, stating in the proper places (a) the shortest possible work week, (b) the highest possible wage, which the industry must have or go without the Blue Eagle.* (2) leave the work sheet,. .with the Secretary of the Board. Note: Petitioners ma] 7 " attach to the work sheet statistical data to show that these provisions will bring wages and hours to approximately the 1929 level. (Employment data requested, for wage earners only, was (a) number employed in the industry in 1929, (b) number employed in latest available period in 1933, (c) average hours actually worked per wage earner in 1929, and (d) average hours actually worked _ oer week per wage earner in la.test available period in 1933. Wages data/requested was (a) average hourly, wage rates for unskilled wage earndrs (male and female) in 1929, (b) average hourly wage rates for unskilled (male and female) in latest available period in 1933. In cases where the petitioner requested tolerances above the maximum work week, they were -asked to submit actual employment dat~ oy months for 1929, 1932 and available months in 1933. Although the Work Sheet stated, "no petition to substitute for paragraphs other than 2 - Maximum Hours; 3 - Maximum Hours; 4 - Exemptions and 6 - Minimum Wages, will b.<=> considered" this policy was not adhered to as a study of the PRA substitutions approved will show. (See MRA Bulletin #6 and "PRA Substitutions, Appendix "j 1 ", especially substitutions approved for "Utilities" covering paragraphs 2 to 7 inclusive and "Daily Newspaper Publishing" covering all paragraphs of the PHA except #8 ~ An ti- Subterfuge, and #10 - Cooperation). (3) - "The Policy Board will render a decision on this basis as soon as possible (after a statistical analysis has ''oe^n made to determine whether or not the proposed wages and hours will bring emploj^ment and purchasing power to approximately the 1929 l' 2 vel) ". (4) - "If the Policy Board approves the petition it will draft a code provision which will include the requested, changes. This draft will be -prepared for the signature of the petitioner and when signed will be immediately sent by the board to General Johnson for his signature. " » * "Apparently this means a statement of the shortest week and highest wage the industry could, adopt." 9819 - (5) "If the petition is reject by the Board, the Board will return the Vv'ork Sheet wit Nation as to the: (a) work week, and (b) minimum wa, i, . hich '/ill "be approved by the Board. If the Industry agrees to this, the 3oard v.'ill draft Code sections which include these provisions — this will he approved by the Board and Bent to General 'Johhs'on" . 5. D3ADLIN3 FOR SUBMITTING PETITIONS TOR SUB ST I TUT I Oil S In a memorandum dated September 6, 1933, General Hammond recommended to the NRA administrator that no petitions for sub- stitutions to the PRA' be considered in 'cases where proposed codes were filed with BRA. after midnight September 15, 1033. Press Re- lease 742, dated September 13, 1933, states that October 1, 1933 was the deadline for substituting proposed code provisions for PRA provisions, and that the substitutions of code p ro vis ions where less than 1,000 employees were involved, would not bo approved. NRA Bulletin No. 6',' "Substituted Wages and Ho.urs Provisions of the PRA", dated October 14, 1933, states on page III that no further substitutions will be approved. Except in a few cases such as the Cotton Seed Crushing Industry substitution approved' December 1, 1933, no substitutions to the PRA were ap-o roved after October 1, 1933. 3. NATURE OF SUBSTITUTIONS TO THE PRA AND INDUSTRIES AFFECTED 1 With few' exceptions, the substituted provisions dealt with nothing but wages or hours or both. FRA Bulletin $6 - "Substituted Wages and Hours Provisions of the PRA", dated October 14, 1933, signed by General Johnson, NBA Administrator and approved by Secretary of Commerce Roper, Chairman, Special Industrial Recovery Board, contains the text of all substitutions to the PRA approved or authorized by the NBA, except those for trades and industries covered by approved codes October 14, 1933 and the few substitu- tions approved subsequent to that date. The substitution approved on July 31, 1933, for the "Retail Dry Goods, Department, Specialty Shop, Efe.il Order, Men's Clothing and Furnishings,. Furniture, Hard- ware, and Shoe Store Trade" was omitted, because approval of the "General Retail Code" was expected at an early date (*). (*) In Appendix "E" of this report an attempt has been made to furnish complete information relative to; (l) the names of all industries and/or trades which petitioned to NRA for permission to substitute or modify substitutions of proposed code provisions for PRA provisions, (2) paragraphs affected, (3) action t aken and date thereof, (4) reason for rejecting or withdrawal of the petition, (5) industries authorized. representative, and in cases where a code was approved which was applicable to the trade and/or industry, the approval and effective dates. (Footnote continued on next page) 9819 -34- A study of the PEA Policy M&td. files .indicates the follow- ing pertinent information: . (l) Substitutions approved. ..... i.-»-/» . # . 385 (3) Petitions for substitutions rejected "by IRA (ihciucling 3' rejected :"by the industry (bij^cle, terra, cotta, witch hazel) after NEA : had modified the petitions.. '. ....... .'". . •'.•'. •■ . .■ 134 (3) Petitions presented "but no record of action t aken 2 (4) Petitions for substitutions withdrawn "by industry • 45 T^tal number of Industries petitioning NEA for sub- stitutions to P?A 566 (5) Modifications of substitutions to PEA.... 13 P. APPLICATION OF APPROVED SUBSTITUTIONS All employers in a trade or industry, for which NEA approved substitutions to the PEA,' ^/ere.' permitted to ^ operate under the substituted provisions -instead 'of the.; corresponding .provisions of the PEA. '■ In every-'ea'sd the paragraphs of the PEA remained in full force without change, except where 1TRA- elected to substitute propas3d„code provisions for corresponding PEA provisions. (NEA Bulletins #4 and #6). ' "It is not proper for firms to operate under the wages and hours provisions of the proposed code for their in- dustry when such provisions have not yet been : accepted .for substi- tution of the PRA. Firms signing the PEA with the notation that they will operate under the hours and wages' provisions of the proposed code for their industry should have their. agreements returned to them with the advice that the provisions of. the PEA apply to their employees until such time- as their proposed industry, code has "been accepted for substitution. "Where an employer is honestly in doubt about which proposed industry code applies to his "business, the NRA does not object to his operating under the accepted substitution of a propased code which seems to apply to him .and will consider him '. (*) Footnote continued. , . " This code information as "presented is incomplete, as it involves a complicated problem due to the fact that except in a few instances definitions of the trades or industries involved were not incorporated in the substitutions and also due to the problem of multiple code coverage.' The time alloted for submission of this report will not permit as exhaustive a study as it reqviired. See also Work Materials No. 30. 9819 -35- as operating in harmony with the spirit of the PBA if ho do< B so." (Liasison Circular #39, September 8, 1933). "When an em- ployer has signed the P3A, without modification, and where sub- sequently a modification of the PBA has been approved for a given industry, of which the employer is a member, such employer may operate under the approved modification of the P?A for his industry, just the same as any other employer in this industry. To do other- wise would he to most unjustly penalize those who have shown a most commendable and patriotic spirit of cooperation". ('!. S. Hammond, Aug. 5, 1933). "Approval of a substitution by the NBA is not a guarantee that the substituted provisions will be approved without cliange in the permanent Code of Pair Competition for the particular trade or industry". (NRA Bulletin #6). The fact that NBA. consented to the substitution of the wages and hours provisions of a proposed code for corresponding provisions of the ?BA did not deprive a member of the particular industry involved of his right to petition for individual relief duo to unavoidable hard- ship as provided in Paragraph #14, PHA. (NBA 3ulletin #4) G. COmJTS In a number of instances, especially in the cases of "Utilities" and the "Meat Packing Industry", the substitutions allowed the members to do practically anything they desired and yet operate under the PHA. 1. UTILITIES (Electric Light and Power, Gas Operating Utility, ITatural Gas, Telegraphic Communications and Telephone Companies) The substitutions approved for these industries cancelled Para- graph #7, PHA, which provided that the compensation for employment now in excess of the minimum wages specified, should not be reduced (notwithstanding that the hours worked in such employment may be re- duced) and to increase the pay for such employment by an equitable readjustment of all -pay schedules. 2>To provision was incorporated in the substitutions for Paragraph '}7 cancelled; therefore, they were not required to maintain wage scales above the minimum and they were not required to readjust equitably all pay schedules. See also "Telegraphic communications industry , Appendix "G". 2. M3AT PACKING INDUSTBY Paragraph 4 (a) substitution approved for the Meat Packing Industry states: "The maximum hours fixed in the foregoing paragraphs 7r2 and #3 shall not apply to employees in executive, managerial, supervisory or technical capacities, nor to their immediate assis- tants", and (b) " employees exercising managerial functions who now receive more than $35.00 per week". The wording of these para- graphs presented a number of problems: (l) Paragraph >4(b) exempted from maximum hours employees exercising managerial functions only in 9819 -36- the event they received more than $35.00 per week, while Paragraph #4 (a) exempted from maximum hours, employees in executive, managerial , supervisory or technical capacities, regardless of the weekly salary received, and (2) the term "immediate assistant" was not definite and' was construed to include rany employees which never should or were intended to "be exempted from the maximum hours provisions. 9819 -37- IX. INTERPRETATIONS OF THE PRA A. SP ECIAL INTERPRETATIONS COMMITTEE The PHA as originally drafted was subject to interpretation even before it was released to employers for signature on July 27, 1933. This is indicated in IRA. release #98, dated July 25, 1933, which states: "Machinery for interpreting and clarifying the blanket code, as promulgated by the Fresident, was set up in the NRA today. A Committee headed by General Hammond, will receive and answer questions in relation to interpretation of the code." This Committee, consisting of General Hammcnd, Executive Director, President's Reemployment Program as Chair- man, and representatives of industries, consumers, labor and the NRA le- gal staff, after several sittings of almost 24 hours per day, developed 20 basic interpretations of the FRA. After approval by General Johnson, the 21 basic interpretations^) (the 21st developed later") were incorporated in NRA Bulletin #4 - "What the Blue Eagle Means to You and How You Can Get It, Official Statement of the Blue Eagle Division, NRA." These basic interpretations were re- leased to the public as follows: Numbers 1 to 6, July 28, 1933, NRA release #124; Numbers 7 to 12, July 31, 1933, release # 140; Numbers 13 to 19, July 31, 1933, release #147; Numbers 20, August 3, 1933, re- lease #168; and Number 21, August 21, 1933, release #412. B . NATIONAL LABOR BOARD (NATIONS BOARD OF ARBITRATION ) Fear that the remarkable evidence of cooperation in the com- mon cause of restoring employment, increasing of purchasing power, and gratifying progress already made', might be endangered by differing interpretations of the PRA by some employers and employees, led the Industrial and Labor Advisory Boards on August 4, 1933, to unanimously recommend the creation of a Board to protect every interest and to which differences might be referred. The creation of this Board (er- roneously named "National Board of Arbitration") was announced on Aug- ust 5, 1933 in NRA release #195, In Executive Order #6511, December 16, 1933, the President stated that "The National Labor Board, created on August 5, 1933, to 'pass promptly on any case of hardship or dispute that may arise from inter- pretation or application of the PRA' , shall continue to adjust all in- dustrial disputes, whether arising out of the interpretation and opera- tion of the FRA or any duly approved industrial code of fair competi- tion, and to compose all conflicts threatening the industrial peace of the country. All action heretofore taken by this Board in the discharge of its functions is hereby approved and ratified." The original Na- tional Labor Board, as recommended by the Industrial and Labor Advisory Boards, consisted of Honorable Robert F. Wagner, Chairman; Dr. Leo Wolman, Chairman, Labor Advisory Board; Walter C. Teagle, Chairman, In- dustrial Advisory Board; William Green, John L. Lewis, Gerald Swope and Louis E. Kirstein. (*) "See Apoendix G. 9819 -38- It is doubtful whether the National Labor Board as such, ever acted on any interpretations of the FRAr however, 1 they did handle a number of P'SA cases involving labor disputes. C. PRA POLICY BOARD •'..:••'■..• In announcing the appointment of the PRA. Policy Board on Au- gust 7, 1933, General Johnson stated: "All interpretations of the PRA requested by the Industrial Mediation Board, General Hammond or other proper 'authorities shall issue from this Board." After the abolishment of the PRA Policy Board on October 26, 1933, all its duties and functions were delegated to the national Compliance Board and later to the Advisory Council, Compliance Division and final- ly to the Compliance Council, IRA, See Office Orders #18 and #40; "P3A Policy Board,' Chap. Ill, Sec. II and "National Compliance Board," Chap. Ill, Sec. V, supra. D. INTERPRETATIONS SECTIONS BLUE EAGLE DIVISION .NRA The public announcement (.NRA release #98, July 25, 1933^ of a Committee to -receive' and answer questions regarding interpretations of the PEA and the release of the agreement to employers for signature on July 27, 1933, resulted in an avalanche of inquiries by mail and wire. To handle these inquiries and to promulgate interpretations and rulings made by the PRA Policy Board, General Hammond on August 11, 1933, estab- lished 'the Interpretations SectiOh of' the 'Blue Eagle Division. See "Blue Eagle Division NEA, "'Appendix' "B, " . \' ■ . The Interpretations' Section in reolying to inquiries received from employers and consumers- followed the principles set forth in the 21 ba- sic interpretations. In cases where the inquiries were not covered by the basic interpretations, the problems were presented to the PRA Po- licy' Board. Due to the great number of problems submitted, the Policy Board as a Board wa.s unable to render decisions without delay which re- sulted in many interpretations and rulings being made by the legal ad- viser to the Board (Kilbourne Johnston*) and later Wm. F. FarnsworthV. Subsequent to the abolishment of the Blue Eagle Division NRA, and the establishment of the Compliance Division, NRA, on .October 26, 1933, interpretations were handled by Blue Eagle, Administrative, and Analy- sis Branches of the Compliance Division, . NRA, in the order named. Under the heading "General' Interpretations, Explanations, Instruc- tions and Rulings Regarding the PRA," in Appendix "G" of this report, an attempt has bee made to compile and list all interpretations, etc., used in explaining and administering the PRA, and wherever possible the source is given. :'..-•• X. EXCEPTIONS TO THE PRA (CASES OF IIJDIVI33UAI HARDSHIP) A. AUTHORITY The authority for granting executions to Individual Employers , after signing the FRA, in cases where some particular provision or 9819 -39- provisions of the FRA would create great and unavoidable hardship is pro- vided in Faragraph #14, FRA, which states: "It is agreed that any person who wishes to do his part in the Pre- sident 1 s Reemployment drive by signing this agreement, but who asserts that some particular provision hereof, because of peculiar circum- stances, will create great and unavoidable hardship, may obtain the benefits hereof by signing this agreement and putting it into effect and then, in a petition approved by a trade association of his in- dustry or other representative organization designated by NRA, may apply for a stay of such -provision sending a summary investigation by NRA if he agrees in such apolication tc abide by the decision of such investigation. This agreement is entered into pursuant to sec- tion 4(a"> of the National Industrial Recovery Act and subject to all terms and conditions required by section < 7(a") and lO(b , i of the Act." "Exceptions" to the FRA should not be confused with "Substitutions." Exceptions applied only to Individual Employers while substitutions to the PRA after approval by NRA. applied to all members of a particular in- dustry or trade. B . ESSENTIAL INFORMATION REQUIRED TO BE SUBMITTED BY PETITIONERS Exceptions to the FRA, under Paragraph #14 could be granted only in the event peculiar circumstances would cause great and unavoid- able hardship upon application of FRA provisions by an individual employ- er to his business. The burden of proof of "great and unavoidable hard- ship" was on the petitioner and sufficient data and information was re- quired to substantiate such hardship. There was no standard form developed for presenting petitions for exceptions to the PRA; however, it was necessary that the petitioner sub- mit and certify to the following information and data: (l") Name and complete address of petitioner. .. (2) Name of trade, industry,, organization or Association to which the petitioner's business would be applicable. Also specific information regarding the nature of the petitioner's business. (3) A statement that the petitioner had signed the FRA, had put it into effect, had signed a certificate of compliance and was or was not displaying the Blue Eagle. (4") A statement that the petitioner believes and asserts that a certain provision or provisions of the PRA would create a great and unavoidable hardship because of -peculiar circumstances in his enterprise. (5) Statements in detail setting forth sufficient facts to substan- tiate the petition's contention that because of peculiar cir- cumstances compliance with the PRA and/ or applicable substitu- tion was causing great and unavoidable hardship. 9819 -40- (6) In cases Of a petition requesting exception to maximum hours, the exact number of hours desired in lieu of maximum PRA hours and/ or any applicable approved substitution thereto. (7) In cases of a petition requesting exception to minimum wages, the exact wage rate desired in lieu of the wage rate pres- cribed in the agreement and/ or any applicable approved sub- stitution. (8) A statement that the petition had been approved in writing by a representative of the Trade Association of the petition- ers industry, the Local Chamber of Commerce, or a representa- tive of a similar organization- designated by 1IHA. Note: Subsequent to September 12, 1933, petitions were re- quired to be submitted to Local NRA Compliance Boards for pre- liminary approval and not to any other organization or agency. (9) Total number of petitioner's employees, and the number affec- ted by the exception requested. (10) Duties of employees affected by exception requested. (11) A promise to abide by the decision of NRA on the petition and in the event of a decision against the petitioner, effective as of date of NRA decision, the original PRA. provisions and/ or provisions of any applicable approved substitution previous- ly stayed by preliminary approval by any organization autho- rized by NRA. (l«l) A labor shortage certificate signed by the Federal Reemploy- ment Service State Director in cases where petitions to work longer hours were based on a shortage of labor. (Policies followed by Exceptions Section, Blue Eagle Division, NRA. '"■ C. EXCEPTIONS SECTION, BLUE EAGLE DIVISION, NRA As soon as the PRA was released to employers for signature, NRA received a large number of petitions requesting relief from certain provisions which were causing the individual employers great and unavoid- able hardship. To handle the increasing volume of petitions for exceptions, Gene- ral T. S. Hammond, Executive Director, President's Reemployment Program, established on August 11, 1933, an Exceptions Section of the Blue Eagle Division. Mr. M. H. Pettit was appointed Chief of the Section and he was followed by Colonel J. G. Cowling as Chief on September 7, 1933. (See "Blue Eagle Division, NRA," Appendix "B." In addition to handling ordinary petitions for exceptions to the PRA (Paragraph #14), the Exceptions Section, handled Petitions for per- mission to operate under Union Contracts calling for hours longer than the maximum allowed in the PRA. These petitions were handled in the same manner as those presented under Paragraph #14, PRA. (See "Con- tracts Labor Union," Appendix "G." -41- Sub sequent to the abolishment of the Blue Eagle Division, NRA, and the establishment of the Compliance Division, NRA, on October 26, 1933, petitions for exceptions were handled bv the Blue Eagle, Labor and Analysis Branches of the Compliance Division in the order named. 1. POLICIES FOLLOW BY NRA I IT CONSIDERING PEITTIONS FOR EXCEPTIONS TO THE PRA Although it was difficult to determine just what constituted "great and unavoidable hardship, " such petitions were generally granted in the event the petitioner clearly indicated that his only alternative was to dismiss the enroloyees concerned or close down the entire establishment. Based on a thorough examination of the petition, the following policies were observed by NRA: (a) The petition was denied if the plea was vague and unavoidable hardship was not clearly substantiated. In cases where the petitioner clearly showed that the increase in labor costs due to compliance would ruin his business because of lack of capital and/or sustained losses for several years immediately preceeding signing of the PRA, the peti- tion was given careful consideration. (b) When the petitioner pleaded scarcity of skilled labor, the pe- tition was denied pending certification of labor shortage by the Federal Reemployment Director of the petitioner's district. (c) Petitions requesting exceptions for peak season operations were usually denied in cases where periods of three months or more were involved and an adequate labor supply was available, where there was a possibility that regular employees counted on peak periods for income to carry them through slack periods the petition was usually given fa- vorable consideration but generally overtime pay of one and one-half times the employee's regular rate of compensation was required in such cases. (d) In cases where the petitioner clearly established that due to the peculiar nature of his business it was necessary to train new em- ployees in the establishment and an earnest effort was being made to do this, the petition was sometimes granted for a specific period. (e) A simple plea of competitive disadvantage with firms not ope- rating under the agreement was as a rule not considered sufficient for the granting of an exception, because there were also competitive advan- tages in operating under the PRA and displaying the Blue Eagle. (f) Where firms enjoyed business resulting from Federal sources, their petitions were usually denied. (g) There was a prevailing belief that the nearness of the distri- butor to the ultimate consumer meant a greater competitive advantage to signers of the PRA, therefore, in such cases as laundries, restaurants and other retail Outlets the operators should be willing to be placed at a considerable wage disadvantage before requesting relief from the pro- visions of the PRA. (h) Petitions based wholly on the plea that competitors were granted 9819 -42- - exceptions, were denied. If, however, the petitioner established that such action resulted in serious hardship in his case, the petition might "be given favorable consideration, (i) In cases where new industries or new establishments in old industries could not "be operated at a profit without operating under low labor standards, the reasons for existence of such business were seriously questioned. (j) So called "non-profit" and "service industries" required spe- cial study, (l) It was felt that many agencies such as retail credit agencies, set up to prevent losses due to bad accounts, should not be considered as "non-profit" agencies, and therefore, they should not be given any special consideration; (2) it was also believed that distinct- ly service organizations such as Y.M.C.A's, Y.W.C.A.'s, etc., should not be granted exceptions in departments competing with outside groups, such as restaurant or where no special benefit saccrueeL to the enraloyee. However, in cases where the employment might be considered as training for public service, exceptions might be warranted. (k) Theoretically the status of a provision of proposed codes should have no bearing on considerations of exceptions to the PBA; how- ever, if approvalof a code to which the petitioner would be subject, was imminent, it was not considered good policy to overrule a Local Compliance Board and alter changes in wages and hours temporarily autho- rized, for a short time pending approval of the code. (l) Where the petitioner requested relief from the PRA on the ground that he would conform to the provision of the industry's proposed code, the petition was denied because to do otherwise would mean prejudging the code. (m) Deputies were usually consulted before acting on petitions for exception to the FHA, if proposed codes for the petitioners indus- tries had been given public hearings and they were in the final stages of development, for the purpose of ascertaining their status and pro- visions likely to be approved, (n) If a petition requested more relief than would likely be pro- vided in a code awaiting approval, the petition was either denied or modified to conform to the provisions expected to be approved in the code. (o) In cases where a substitution had been approved for the peti- tioner' s industry, the petition was denied and a copy of the substitu- tion was sent to the petitioner unless the substitution failed to meet all requirements of the petitioner. (p) If a code had been approved which was applicable to the pe- titioner' s industry, the petition was denied and the petitioner was notified that he must operate under the code provisions. (q) In cases of Union Contracts made prior to PRA where a copy of the Contract was submitted with the petition (l) if the employees were paid by the day, week or. month, the petition was denied; (2) if the employees were paid by the hour and the petitioner had attempted 9819 -43- to adjust the maximum hours of employment downward and equitably adjust upward the hourly wage rate, and the Union would not agree, the oetition "as granted; otherwise! the petition was denied or the petitioner reauested to attempt such adjustments. (r) petitions referring to Paragraph #12, PEA, (forward contracts) re given soecial consideration and the petitioner was advised to • either seek an adjustment from the other party or the petition was decided on its own merits. (t) Petitions involving section 7(a) of IT IRA. were denied. 2. PROCEDURE FOLLO'.ED BY NRA IN CONSIDERING PETITIONS FOR EXCEPTIONS TO THE PRA Petitions for exceptions to the PRA received by the "Exceptions Section, Blue Eagle Division, were first assigned to analysts for review, "brief digests "ere prepared and the petitions and digests after being reviewed by Assistant Counsels were submitted to the National Compliance Board' or their authorized representatives for final considera- tion In cases of doubt advice was obtained from Deputy Administrators, the Labor and/or Industrial Advisory Boards, or the Liaison Office to A. A. A. On November 28, 1933, the following plans presented by Mr. Pollak to the National Compliance Board were approved for handling future petitions and the 2000 or more on hand at that time awaiting action: I (a) FUTURE PETITIONS (LOCAL) (1) Table all restaurant petitions until December 15, 1933, except those asking for a variation of mo:-e than 10;? in hours and/or wages. (2) All other petitions to be acted on by the Compliance Division without consultation with the National Compliance 3oard except in extreme cases. (3) Petitions involving non-unanimous approval oy a Local NRA Compliance Board and extreme cases (except as established by precedent) to be referred to the National Compliance Board, (b) FUTURE PETITIONS ( NON-LOCAL ) 1. No general rules were formulated for tabling or approving future petitions (non-local), except ^here covered by precedent;" all' were considered by the National Compliance Board, Advisory Council, Compliance Division, "NRA, or the Compliance Council, NRA. (c) PENDING- PETITIONS 1. Table if unanimously approved and they "ere not "extreme." 2. Review if "extreme" or not unanimously approved by local NRA Compliance Boa.rds. 9819 - ■■-•■■ „44~ (d) NON-EXTREilE CASES Petitions requesting relief within the following limits were not considered extreme : . 1. .. Original PRA, (a 1 ) Paragraph #2 (Maximum Hours) - 44 Hours (,b l ) Paragraph #3 (Maximum Hours) - 40 Hours, or 8 hours in any one day Not less than &13.50 13. ,-05 12. ,60 10. ,30. (c 1 ) Paragraph #5 (Minimum Wages) — In Cities of ..••:• •' ■ • Over 500', 000 .-;■: - :.-■• ..'■ •'«' 250,000 ..-;! ' : .i ; ■ '■' ' " " " ; 2,500 Under 2,500 (d') Paragraph #6 (Minimum Wages)- Not less than 2? cents, (2>- SUBSTITUTIONS TO THE PRA : '' : ', ; ■ (a') Hours.- 10 percent provided that except in Paragraph #2 (Maximum Hours) - 48 hours and Paragraph #3 (Maximum Hours) - 44 hours, and provided that in cases of substitution and no modification had been made of Paragraph #3 (maximum hours) forty hours was to be the limit. : (b 1 ) Wages - Same as above (lC) (e) LOCAL VS NON-LOCAL TRADES OR INDUSTRIES - • It was agreed by the National Compliance Board that where the facts presented in the \>odrj of the petition indicated that the petitioner was operating in competition with outside establishments even though the petitioner was in an industry ordinarily considered local, the petition itself should" be treated as non-local. On December 5, 1933, Dr. A. J. Altmeyer, Chief, Compliance Division, NRA, reported to the National Compliance Board that 2000 petitions for exceptions to the PRA were still sending and that the formula approved by the Board on November 28, 1933 had eliminated only 20$ of the entire group. -Dr. Altmeyer then submitted a new formula, the aooroval of which was held in abeyance until the next meeting to enable further study. On December 6, 1933, the Board authorized Mr. Behney, Labor Adviser to work with the Exceptions Section in examining all petitions for exceptions to the PRA which had not already been --vcted upon and to use his best judgment in recommending disposition thereof with advice that decisions" of Local NRA Compliance Boards should not be overruled without good and sufficient reason. ., ... D. LOCAL NRA COMPLIANCE BOARDS 1. PETITIONS FOR EXCEPTIONS PRESENTED UNDER PARAGRAPH #14, PRA 9819 -45- Prior to the organization and establishment of Local NBA Compliance Boards, petitioners for exceptions to the PBA (Paragraph rfl4) Fere instructed to have their petitions approved "by their trade Association, Local Chamber of Commerce or other representative organization designated by NBA and then submit it to the Administration for final action. (NBA Bulletin #4). Subsequent to Se^temoer 12, 1933, petitioners were instructed to submit all petitions for exception from the various "provisions of the PEA direct to their Local NBA Compliance Board and from that date (September 12, 1933) no petition should be presented to or accepted by Trade Associations, Chambers of Commerce or any other organizations, (NBA Bulletin #5), ( a) LOCAL NBA COMPLIANCE 30A : 'D REGULATIONS FOB HANDLING PARAGRAPH #14. PRA PETITIONS BOB EXCEPTIONS (NBA BULLETIN t^-5) (1) "All netitions for exemption from the nrovisions of the President's Beernoloyment Agreement under "paragraph (14) thereof (herein- after called "Petitions") should be submitted in duplicate direct to the Board (Local NBA Compliance Board). (2) Prom the da-te of these regulations, September 12, 1933, no -petition shall De presented to or accented by trade associations, chambers of- commerce, 1 or any other organizations. (3) The Question presented by a petition is whether or not some particular provision of the President's Agreement, because of peculiar circumstances, would create great and unavoidable hardship in the case of the individual petitioner. The burden is on the petitioner to present sufficient facts in his written -petition to decide this question. The petition should be signed and sworn to before a notary. (4) No exemption from paragraphs No. 1 (Child Labor.)'; No.. 8 (Anti-Subterfuge); No. 1 (Cooperation); No. 11 (Codes); or No. 13 (Termination and Substitution), of the President's Reemployment Agreement may be approved and no exemption from a statement of an interpretation or understanding of Section 7 (a) or, Section 10(b) of the National Industrial Recovery Act may be ap-oroved, (5) If the board finds by unanimous vote that, the petition is justified by the facts, it should be ap-oroved and the petitioner informed of this fact. He may then operate under his petition without displaying any "provisional" bar upon his Blue Eagle. (6) If the board finds by unanimous vote that the petition is not justified by the facts, it should be disapproved and the -petitioner informed of this fact, (7) In either of the above cases, one co-py of the petition, with the Board's action and the reasons therefor, should be forwarded to the secretary of the District Recovery Board at the District Office. The other copy should be kept in the files of the board. NBA may reverse the action of the board in these cases if it finds that such action is 9819 -46- unjustified. In order to prevent such reversals, the hoard should assure itself of. NRA policies "by requests for information from the secretary of the District Recovery Board at the District Office in all doubtful cases. .. . (8) If, the board finds hy a majority vote that the petition is or is not justified "by the facts, the petition, with majority and minority reasons for approving or rejecting it appended thereto, should be forwarded. -to the Secretary of the District Recovery Board at the District Office, a copy being, kept in the files of the Board. An approval- ■■"in such cases will, operate as. provisional permission to pro- ceed in accordance with the petition as approved, pending final action by NRA.- " .-• Until, -such time . as . NRA does act, the petitioner should "be informed that he may not display the Blue Eagle except, -/ith a white bar across its hreast bearing the word "Provisional"." (9) If a substitution has already ' h.een.. granted for the employer's trade or industry, the Board should require- a much clearer showing of individual hardship before granting an individual exemption with respect to the.- substituted .provisions.. - v .>•. ( 10)- In any -case in which, the petitioner .asks for more than one exemption, each exemption should -"be considered separately and a separate decision made on each, 'so that a petition may he approved in part and denied. , in. part ; -.of the. facts. so warrant. (11) In no case should a , group exemption he allowed. Paragraph #14 of the President's Agreement applies only to Cases of individual hardship, .... (12) In every case. a. copy of the petition with a notation of the decision of the Board and, a cppy of the recommendation of the Board, if any, should be kept, in the- files of the Board. " (13) The files of the Board on exceptions should not be' open to the public". :-. f ;■.,•.-,• 1 .■.-.■ 2.' PETITIONS -EbR, PERMISSION TO OPERATE : UNDER UN I OH CONTRACTS Originally, petitions to -operate under Union Contracts were sub- mitted directly to the. NRA for consideration.. The approval of a trade association or other representative organization ,,T as not required (NRA Bulletin #4). . Following .the. es tab lishment of Local NBA Compliance Boards, petitions involving. Union Contracts were first submitted to these Boards for consideration, and then to the' LIRA. for final considera- tion (NRA Bulletin. #5). ' : . .. (a) LOCAL. NRA- COMPLIANCE BOARD REGULATIONS FOR HANDLING- PRA PETITIONS. TO. OPERATE UNDER'"UIII0N CONTRACTS (NRA BULLETIN ,(l) ."Every petition to work employees under a Labor contract for longer hours than are ..permitted under the President's Reemployment Agreement should be signed in duplicate at the foot of the petition hy the petitioner, and.. sworn to "before a Notary. It should be accompanied 9819 -47- by two certified copies of the contract. (2) If the labor contract calls for the nayment of wages (at a rate Above the miniimim under the President's Reemployment Agreement) by the day, week, or month, the~e should be no grounds for a petition. By paragraph #7 of the President's Reeiroloyment Agreement, the enroloyer has promised to reduce the hours of workers naid by the day, week or month, to the maximum under the Agreement without reducing their pay by the day, ^'eek or month. He is, therefore, obliged to make an offer to tnis effect to his erroloyees under the contract, and undoubtedly the offer- will be accepted. Such petitions should be refused unless the employer can show some unusual reason why his employees are unwilling to work shorter hours at the same wage. (3) The proper cs.se for a Labor contract oetition is one in which the contract calls for nayment of the cnroloyees by the hour. An employer with such a contract should propose to his workers a reduction o + " their hoiirs to the maximum, couoled with an unward equitable readjust- ment of their hourly rate, in accordance with paragraph #7 of the .President's Reemployment Agreement, as explained in basic interpreta- tions #1 and #21. If the employer and his employees cannot agree on the eauitable readjustment, so that an agreement cannot be reached for a reduction of hours, a petition may be filed. (4) If no atteirot has been made at arriving at an eauitable readjustment by agreement the petition should be denied. (5) Provided, ' that it is a proper case for a petition, as descrioed above, the Board should then satisfy itself that the con- tract is a bona fide contract. If it was made on or after June 16, but not before the date when the employer signed the President's Reemployment Agreement, the Board should make certain that the contract was not made to evade the President's Reemuloyment Agreement. (6) If the contract was made after the employer signed the President's Eeemployment Agreement, or for the ourpose of evasion, the netition should be ^denied. (7) The "oetition should also oe denied if the contract is subject to change or termination at the will of the employer. (8) If the petition indicates that mediation by the Board might lead to agreement between the employer and his employees, the Board should attempt mediation. This should be done by contracting the errroloyees, or their representatives, snd offering to mediate. If the mediation is successful, the Board may give permission to the employer to operate under conditions agreed uoon by the employer with his employees. (9) If the mediation fails, or if the Board finds that mediation is useless, the Board may give nermir. sion to the employer to operate under the existing contract. (10) In any c.^se be i°t to any subcontractor if ther° b° no a.tyoroved code—, ^ho has not Signed and complied with the PEA. (c) Only articles, materials and supplies produced under the PEA shall b Q used by any contractor or subcontractor .in performance of any "ork covered by th Q bid, except "h°n th° contracting officer certifies thet this requirement" is not in the public inter°st or that the consequent cost is unreasonable", . • B. RELIEF TO GOVERN! -BAT C O NTRACTOR S ., On August 6, 19"3, (NBA release #?00.) the President said: "It has be°n brought to- my attention that in many instances hardship may be imposed upon employers who eign the PEA , '--ho have previously made contracts w ith the Government to suppI - " - * goods or services affixed prices which may be inadeouate in view pf incr°as°d costs caused'by shortening hours or increasing wag<= s in compliance with agreements or codes. The policy of th° Administration was stated in the statement which I issued upon signing the NIRA , This policy was carried forward in the provision of Paragraph #1?, PEA, under which thos° making this agreement with the President also agreed to 'make an appropriate adjustment of said fixed price to me°t any increase in cost 'caused by the seller having signed the PEA 1 The Unit°d Stat°s Government as a buyer of goods should be willing itself to take action similar to th-^t recommended 'o private buyers. Therefor , wherever adjustment can be made under existing law, I s ha n 1 recommend that they be made under authority now possessed bv the Executive Department. ■ shall recommend that the next Congress, meeting in January, 1934, take action giving authority to the Executive Departments, under such safeguards 9819 -52- as the Congress may atrorove, and making an - " - necessary appropriations to provide for recompensing such .Tyuyers ^ho, have, in good faith and whole- heartedly cooperated with .'the Administration nf the _NIRA, and as a result thereof shoul d equitably be allowed an increase in the prices of goods furnished in the interim in accordance -d'th the t°rms of -contracts entered into with the Gov ernment prior to June 16. 1933. Because this same situation exists with regard to employers who have previouslv made contracts with States, Municipalities, or other local Governments, I further recommend to the Gov Q rnors of the various States and to executives of Counties and Municipal Units that they take similar action to allow for equitable adjustments in such cas°s" • I. ACT PROVIDING RELIEF TO GOVERNMENT CONTRACTORS. On June 16, 1934, the President fulfilled his promise of August 6, 1933 in approving Public Act No. 369, approved by the 73d Congr°ss ^hich provided relief to Government contractors whos° costs of performance were increased as a result of compliance with the NIRA approved June 16, .1933, and for oth°3 purposes. In this connection it should be pointed out that such relief "as authorized only in cases where- compliance with^the NIRA was established and wher° contracts were entered into with the United States prior to August 10, 1933 (see Public Act)No. 369, approved June 16, 1934, Appendix "H".) XII. ENFORCEMENT OP THE PRA. A. PUBLIC OPINION . In signing the NIRA, the President said? "This law is a challenge to o\ir whole people. Ther° is no powop i n America that can force aeainst the public-wiTi such action as we require. But ther° is no group in America that can withstand the force of an arOused -mblic opinion. This gr°at cooperation can succ<= a d. on 1 v if those ■'-ho bravely go forward to restore jobs have aggressive public support and those who lag are made to f°°l th° ^ full weight of public disapproval." (NBA Bulletin No.. 1.) In a generol statement of policy and purpose of the PRA signed by General Johnson and Secretary of Commerce Rop°'r,' Chairman, Special Industrial Recovery Board, o n Julv 20, 1933, it ^as stated: "There is no force here except conscience and opinion. This is an a.pp°al to those good instincts of our people which have never b^en besought in vain. This is a t°st of patriotism. It is the time to demonstrate the faith of cur fathers and our belief in ourselves. We are a people disciplined ~by democracy to a self- control sufficient to unite oiir purchasing power .--. our labor powor.-- our management po^er to carry out this great National, covenant with vigor, with determination but with calm composure and fair play which should always mark the American way." (NBA Bulletin #3). This policy of basing enforcement of the PRA solelv upon public opinion was followed during the e n tire period of its existence by General Johnson and the Administration. To enable the public to do its part, the NRA emblem kno™n as the"3lue 9819 -53- Eagle" was designed, printed and supplied to all signers of the PRA uoon presentation of a signed certificate of compliance with the Agreement. Any person obtaining the Blue Eagle In the manner mentioned was permitted to display the emblem so long as he continued to comply with the Agreement and by, so doing he indicated to the public that he was cooperating with the Administration in its effort to solve the problem of reemployment and therefore merited support of the p\iblic for his business. B. SURREEDER OF THE BLUE EAGLE By axithority delegated to the Administrator by the President in Executive Orders #6173, #6205 and #6337, General Johnson specified that "when, in the judgment of the said Administrator or his duly authorized representatives, any person has failed to comply with said agreement or code, or when any person lias improperly obtained said emblem, such person shall surrender said emblem on demand of the said Administrator or his duly authorized representative, md shall not thereafter display or use the same without the written permission of the said Administrator. Any person who violates any of the foregoing rules and regulations may be punished, as provided in Section 10 (a) of the EIRA, by a fine not to exceed Eive Hundred Dollars ($500.00) or imprisonment not to exceed six months, or both." (Rules and Regulations concerning Display of ERA Emblem, October 17, 1933). Reports from ERA field agencies and complaints received by ERA alleging non- compliance with the PRA, indicated that during the period of the President's Reemployment Drive- (August and September, 1933), especially consumers and generally speaking employers themselves in most instances were ardent in their desire to see that the Agreement was observed; inquiry was made upon purchasing goods and if there was any doubt as to whether the establishment was operating .under PRA provisions, patronage was refused. The public considered violation of the Agreement a crime and they felt that -nrompt, vigorous criminal action should be taken against the offenders. The belief that criminal action should and would be taken against violators of the PRA was later enhanced by a misleading statement re- garding "Rules and Regulations Concerning Display of ERA emblem" incor- porated in ERA release #1239, dated October 17, 1933, which said "Violators of the PRA today face not only the loss of their Blue Eagles but also, as a result of an Executive Order issued o:j President Roosevelt, tne s ame penalties - fines or imprisonment or both - provided by the EIRA fj3r_v_iolators of permanen t Codes of Fair Competition . 1 ' In many cases the press opposed to the Administration and in some cases those favoring the Administration featured headlines inferring or stating that the Administra- tion would subject PRA violators to fines and/or imprisonment penalties of the EIRA. This made it extremely difficult for the Administration to ex-olain to complainants, the public and cooperating employers, that en- forcement of the PRA rested solely upon removal of the Blue Eagle and public opinion, and as early -as the Fall of 1933, public opinion in support of the PRA began to diminish. The inability of the ERA to handle promptly the great volume of complaints alleging violations of the PRA because of the early centralized authority for removing the Blue Eagle delegated to the Administrator and 9819 -54- his authorized representative the National Compliance Board had a further demoralizing influence on uublic. ooinion c It is quite possible that decentralization of this authority to Stat° NBA Compliance Directors at an earlier dat° might have materially assisted in maintaining Public support of the PEA. •. . .'■ C. TYPES OP VIQIATIONS AND DISPOSITION S , 1., MINIMUM !7A£?S AND MAXIf.IUll HOURS (PARAGRAPHS 2, 3, 5, 6, PPA) . (a.) Restaurant i . . ... (l) Hours worked - 49 to 56 hours n°r week, male ■ and female. PPA Maximum Hours applicable - Female 48, male 54 hours -per week. . (2) Wages paid - meals and room orOy (no cash) to meals, room, laundry and $4 o .00. per week, '.. . PPA Minimum Wages applicable - 26 cents per hour. Permissible ■ to deduct, a maximum of $3.00 ner w<=o]r for meals provided such was the practice prior to June 16, 1933. • • (3) Disposition: Violations Reported — September 6, 1933 Blue Eagl< ordered surrendered December IP, 1933. ■ (b) Baking Industry ? (l) Hours worked - up to 1? ho^rs T)»r day, 84 hours per week, hours per week<, per hour. PPA Maximum . Hours appli cable - 8 hours per day, 50 (2) Wages paid ~ %\% to $20 por week, ,.PRA Minimum wag°s applicable - 30 cents to 40 cents (3) Disoos.it ion: Violations Reported — February 14, 1934, respondent prosecuted February 26, 1934 under Pennsylvania State Labor Law for violation of Child. Labor Act. Blue 3 r gle prdered surrendered May 15, 1934. ■ . . 2. COMPENSATION FOR EMPLOYMENT (PARAGRAPH #7, PPA). (a) Baking Industry : 9819 *~ (1) Union contract in force called for a 48-hour work week, time and a- half fur overtime. (2) PRA called for a 14-hour work week (machine baking) time and a- third for overtime (emergency). (3) Respondent proposed ts decrease work week from 48 to 44 hours, to increase wage rate on an hourly "basis "by 5 percent, and reduce overtime conroensation to time and one-third. (4) Interpretation Ho. 20 of Paragraph #7, PRA — "Para- graph 7 prevents the reduction of compensation in excess of the minimum, whether it is paid by the hour, day, week, or month. " (5) Disposition: October 3, 1933, conrolaint filed by local bakers union. October 31, 1933, Denver Local Compliance Board recommended that the respondent's Blue Eagle be ordered surrendered. Subsequent to December 14, 1933 the labor Branch Compliance Division in recommending to the National Compliance Director that he discuss the case with the respondent's attorney stated that "according to tho strict letter of the PRA and approved substitutions, the comnlainants in this case arc right. An effort was made about the time this case arose to get from the General Counsel, a statement as to whether Interpretation No. 20, PRA was to auply rigidly in all casos, even in those where tho wage rates were in the higher brackets. If silence may be taken for consent, Interpretation No. 20 applies throughout the whole scale of wages." June 15, 1934 — Case filed in closed file pending possible resurrection, as the Baking Cade was approved and had beccme effective, and the National Compliance Board had previously ruled that it would not order the surrender of the Blue Eagle for a PRA violation after an applicable code had been approved. 9819 -.,, • - rr„ ... -56r-: ........ CEAPTER IV .4KiI13I5TRA.TI.QM OF THE PRESIJEET'S-FEEhPLOYlIEBT AGREELIEET i. ileaixjuartebs (waseiegtoe,d. c) A. , BE EE ■ EAGL E PI VI S I PIT , ERA (August 1C , 1933 to October 26, 1933) As previouslu mentioned, .General Johnson en or. .about July 22, 1935 appointed C-neral Thomas S. Hammond, Executive. Director, President's Re- employment Program to develop and promulgate its policies. General Hammond, on Augus.t 10, 1933, -announced- that the.. designation of his office would be "Blue -Eagle .Division, ERA". Confirming verbal instructions previously given, General ; Hammond, .on August 23, 1933 announced that the newly established Blue Eagle Division, ERA- was charged with the adminis- tration of ERA Bulletin #3, "The President's Reemployment Program", dates July 20, 1933, in which was incorporated the "President's Reemploy- ment Agreement." (Also see "Blue Eagle Division, ERA", Appendix"3". ) Prior to the establishment of local ERA compliance Boards on or about September 1, 1933, the efforts of the ERA were directed to explaining and inducing employers to sign the PEA, -and little attention was paid to administration*, With the establishment of the Blue Eagle Division ERA, a number of sections were created for the purpose of carrying out preliminary administration functions. 1. ■ EXECUTIVE SECTIOE -.'--.. The Executive Section, Blue Eagle Division, ERA was created to clear all 'administrative matters regarding (l) decisions of policy either within the, division -or ..from the PRA Policy Board, (2) requests for ex- penditur.es of money, (.3) personnel, (-!•) contacts with other governmental departments, -(,5), .liaison .contact with the 2S District Offices of the Department of ■Commerce (h. E.D.LI. .#l) ; ."■ , 2 r RECO VERT ..BOARDS SECTIOE . This Section was created to maintain contact with the field thru state and District Recovery -Boards and.. Councils and Local ERA Committees (B.B.D.LV #1 and #10). _■'■'■ [■■- 3.. COI'IPLAIETd SECTION , ■ • ' ■ ■ ■ -.- ■ ■•■' To handle all complaints from the field, as' affecting operation of the PRA, including complaints relative to use of the Blue Eagle, a Complaints section was established in the Blue Eagle Division. Complaints relative to the right to produce or production of the insignia, were handled by the Insignia Section (B.E.D.M. #1 and #10). 4. REORGANIZATION (September 30, 1933). Pursuant to ERA Office Order #35, September 16, 1933, the Blue Bade Division, NBA, I.I r. Frank Eealy, Chief proceeded to consolidate and re- organise the Division to accomodate itself to the second phase of the Blue Eagle Campaign. To effect this reorganization, all Sections were abolished, effective September 50, 1935 and there remained only one main 0819 - 7- function of the Division - th< administration of the PEA thru Local NBA Compliance Boards-, which incltided a supervision of State and District Boardsi the creation of Local NBA Compliance Boards, the dandling of recommendations and reports on complaints <• titirns coming from Compliance Board:; and the interpretation of the PRA and various substitutions thereunder (B.E.D.i.I. #13). Also see "Blue Eagle Division, N. It, A. Ncrrganization, H Appendix "C". Although all sections of the Blue Eagls Division, NBA were abolished en September 30, 1933, the jranch of the division handling PRA complaints was referred to for convenience as the complaints section which- was the successor to the original complaints, section. In addition to handling complaints received direct from the complainants , complaints referred by the White Hourse, and complaints which accompanied questionnaires return- ed to the Census Bureau; this Section handles PKA cases received from Local NBA Compliance Boards, which they had been unable to adjust. 5. PROCEDURE ( a.) Complaints Not Considered by Local Compliance Boards. Complaints received directly by the Blue Eagle Division were either referred to Local NBA Compliance Boards for investigation and recommendation a.s to their disposition, or a letter was addressed to the complainant advising that the allegations presented did not constitute a violation • In come cases the complainant was advised to secure additional evidence to support his allegations of hon~complian.ee and to refer the matter to his Local NBA Compliance Board. ( b) Complaints Considered by Local NBA Compliance Boards. Investigated cases involving alleged non~ compliance with the PRA received from Local Compliance Boards were referred to trained analysts for analyzing and further recommended findings. In considering these cases the analyst was required to determine whether or not the Local Compliance 3oard had followed in detail the procedure for handling PBA complaints as outlined in NBA Bulletin #6, and to determine whether er not In his opinion the allegations constituted a violation of the PHA. In some cases, because of lack of evidence, the cases were returned to the Local Compliance Board or the complainant rr respondent or both with a request to supply additional pertinent information and data. In analyzing PRA cases the analyst was required to fill out a detailed complaint analysis form in which was incorporated pertinent information deemed necessary to establish a violation. These forms provided for the recommendation of the analyst as to the nature of action to be taken ^oy the National Compliance Board. Bach case was considered by three analysts, of which the writer was one, and then referred to the Division's Chief Assistant Counsel, Chief Counsel and the Chief of the Division before presentation to the National Compliance Board for final action. 6. TERLIhATTON "(October 26, 1933, Office Order #40) On October 26, 1933, the reorganized Blue Eagle Division, NBA became the Blue Bagle Branch of the Compliance Division established as of that date. 9819 -58- B. COMPLIANCE DIVISION, NRA (October 26, 1933 to August 29, 1935). As previously mentioned the Blue Eagle Division, NRA, became the Blue Eagle Branch of the Compliance Division, NRA established on October 26, 1933. The Blue Eagle Branch, Compliance Division continued to administer the PRA until. November 24, 1933 at which time it was amalga- mated and consolidated into the Labor, Trade Practice and Administra- tive Branches of the Comoliance Division pursuant to NRA Office Order #45- "Following the amalgamation and consolidation of the Blue Eagle Branch, administration of the % FEA ; was handled by the (l) Labor Branch, charged with handling complaints of violation of PRA labor provisions and (2) Trade Practice Branch, charged with handling complaints of violations of all provisions of the PRA other than those "involving labor provisions. On April 12, 1934, the personnel and duties of the Labor and Trade Practice Branches were absorbed by the Analysis Branch, Compliance Division established on that, day by NBA Office Order #85, and from April 12, 1934 to May 27, 1935, -administration of the PHA was handled by the Analysis, Branch, Compliance Division, UFA, through Local HRA Compliance Boards and State NBA Compliance Directors subject tj approval of the Compliance Council, NBA and the Chief of the Compliance Division, NBA. The procedure followed, in handling alleged violations of the PEA, by successors to the Reorganized Blue Eagle Division, NBA was in the main the same as that followed by the Blue Eagle Division. C. NATIONAL COMPLIANCE BOARD With the establishment of the National Compliance Board, NBA on October 26, 1933 (Office Order #40) , the first real efforts were made to enforce the PRA. As mentioned under "Enforcement of the PRA" in Chapter III, enforcement of the PRA rested solely upon public opinion and removal of the Blue Eagle insignia in cases where violations of the Agreement were established to the satisfaction of the NBA Adminis- trator. In establishing the National Compliance Board, General Johnson stated that its duties were to undertake further attempts at adjust- ments, recommended exceptions and remove the Blue Eagle in cases of complaints referred to it by the National Compliance Director. Upon reference of cases of alleged violations of the PRA to the National Compliance BQard by the 'National Compliance Director after the complaints had been analysed and digested by the Compliance Division, the Board set a date for hearing anc 1 so notified the respondent advis- ing that he would be given an opportunity to' be heard in person or be represented by counsel or both, although this was not necessary. After hearing the case the Board, in the event the members felt the data sub- mitted warranted such action, recommended that the respondent make certain adjustments and if such adjustments were not made within a specified time, the respondent was ordered, by telegram over the Ad- ministrator's signature to surrender his insigni- to the local post- master. The local postmaster was also advised of the Board's action, 9819 -59- however he wis not requested to ad or fc ny ' Ctlon toward obtain- ing the Blue Eagle. The above procedure in Li ' rin ; the P?A was followed by the Advisory Council, Compliance Division, the Compli nee Council, ITRA and the R . ional Councils* succ ssors to th H tional Compliance Board, except orders for removiri th Blue Eagle in cases heard "by Regional Councils, which went out ov ir th • signature of the Regional Director. Appeals gainst removal of the insigni were heard by the UFA Industrial Appeals Board. D . ADJUSTLBITT 0? PRa COLPL/.IJ TTS A1 7 D RgST^ATIOl] 0? THE BLUB BAGLB . Restoration of the Blue Eagle insignia was contingent upon ap- plication by the respondent and a satisfactory adjustment of all complaints. Before a complaint was considered adjusted or the Blue Eagle was restored, the respondent was required to fulfill the following requirements: (1) Reinstate any or all employees discharged for registering complaints. (2) Make full restitution of back wages due, calculated on the basis of the correct wage specified in the PRA, in cases where a lower wage had been paid than that provided in the Agreement, If necessary, the respondent was permitted to make such payments in installments pro- vided he gave a promissory note or judgment note or posted other forms of security. In cases where there was some question as to the ability of the respondent to pay, the case was referred to the State Adjustment Board for their consideration with a view to compromising at a lower figure in the event the employees would not obtain anything if such a compromise was not made. Where it was impossible to secure evidence as to the exact amount due the credibility of the complainant and respon- dent were weighed. It was pointed out that any civil rights the employee had regarding payment of back wages were not prejudiced by the State Adjustment Board's approval of less than 100$ restitution. (3) As a rale the National Compliance Board required that at least time and one-third be paid for all time worked in excess of the maximum hours specified in the PRA or approved substitution thereto unless a definite rate for such overtime was provided. II. FIELD A. LCCaL uZDIATICIT BOARDS In a radio address, August 23, 1933, General Johnson announced the second pha.se of the President's Reemployment Program which he character- ized in the following language, "The next effort will be to mop up the abuses and all the energy that has been expended in the first month of explanation will be turned on this second task of cleaning up chiselers." The need for this second plia.se had been driven home in many ways - con- sumers and employers forwarded thousands of complaints to ITRA, charging noncompliance on the part of the PRA signers; telegrams and letters were forwarded to HRA by Local ITRA Committees from all over the country re- questing among other things, authority to (l) organize Arbitration Boards, (2) act as they deemed advisable to enforce the PRA or (3) remove the 981< -60- Bluo Eagle in cases where the signer had failed to comply, or was delay- ing comoliance, "but meanwhile was displaying the Blue Eagle. On September 2, 1933, General Hammond announced 'that deliberate wilful '"Chiseling" would not he tolerated, that it was felt the tine had come and it was planned to set up local Mediation Boards in 'each community in which there was a Local ERA Committee. It was at first contemplated that all complaints against consumers or employers would "be registered with Local Mediation Boards for the purpose of inducing compliance "by education, conciliation and mediation as f ar a s possible. (B. E. Letter #6)t The life of Local Mediation Boards as such was of 'short duration, as the name- was changed to Local HRA Compliance Boards on September 11, 1933. B. LOCAL HM COMPLIANCE BOARDS (September 11, 1933 to June 15, :1934) 1. ORIGIN '■ In a letter dated September 11, 1933, adressed to 1TRA Local Committee Chairmen, General Johnson stated "We must secure 100;j compliance with the PRA by all employers now under the Eagle. To accomplish this speedily and effectively, you are hereby requested to establish in your community an ERA Compliance Board."' ••"'- 2." PURPOSE The duties of Local ERA. Compliance Boards were education concilia- tion and mediation in handling (a) complaints of noncompliance with. the PRA; (b) petitions for exceptions under Paragraph #14, PRA (See "Excep- tions to the PRA-Loca.l ERA Compliance Boards"); and (c) petitions for permission to operate on the longer hour schedule of existing union contracts, instead of the maximum hours of the PRA (See "Exceptions to the PBA - Local 1TRA Compliance Boards"). Local ERA Compliance Boards had no powers of enforcement except upon express directions from Wash- ington, they were local representatives of the ITRA and were not affilia- ted with any other organization. 9819 -41- 3. ORGANIZATION. In organizing s Local NRA Compliance Board, the Local NBA Coramitti Chairman was instructs t*5j (a) Convene immediately and act as chairman of a nominating committee composed of individuals representing the interests of labor, trade, indus- try and the consumer, for the purpose of naming ?the.merahe re of the Cohh pliance Boards. To secure the proper representation the heads of the following organizations were appointed members of the nominating committee:. Chamber of Commerce, Retail Merchants Association, Manufacturers Assoc- iation, some representative labor organisation, Federation of Women' s Clubs, and the local Bar Association, (b) Upon convening the nominating committee, the Chairman advised them that they had been called together for the sole duty of naming the 6 members of the Local Compliance Board, If it was deemed advisable and more expedient to form a county com- pliance board, such was permissible provided the consent and cooperation was obtained of all the other towns in. the county which had previously been requested to form Compliance 3oards, 4. REPRESENTATION (a) Employee in Industry- A truly representative employee in indus- trial labor, "if there was an industry in the community, elected for his leadership, intelligence and standing in uhe community and among his fellows, ■■•"■' "•■' ..." .j . ,. (b) Employee in Retail or Wholesale Trade - A truly representative employee in retail or wholesale trade-in the community, ..... . ( c) Employer in Industry'- A truly representative industrial employer, if there was an industry in the community, ( d) Employer in Retail or Wholesale Trade - A truly representative employer in the retail or wholesale trade in the community. Both employer members should have been men who had be en'- leaders in the NRA movement, ( e) Consumer - A representative of the' consumers in the community preferably a woman with no direct interests or connection with Trade or Industry other than those of a consumer, (f) Legal - A lawyer in good standing with the State Bar Association and in the community, selected for his Teaderslrip in the profession, 5, FERIiANENT chairman As soon os the appointment of the Board was completed, the Legal ; Member, as Chairman pro tern, was notified and instructed, to call the first meeting of. the Board immediately, for the purpose of naming a seventh member as permanent chairman. The* permanent chairman was required to have administrative "and organizing ability and mature judgment, he should enjoy 9819 -62- the respect of the entire community, and was required to he fr-ie from any connection - political, financial, or otherwise - which would cast an; doubt on impartiality of his decision. It was iurther suggested thst retired leaders of commercial or professional life he considered for this nomin- ation. Immediately upon completion of the Board organization and appoint- ment of the permanent Chairman, he was instructed to so notify the Executive Section, Blue Eagel Division, NRA to enable them to furnish the Board with detailed instructions with regard to procedure and confirmation or modification of the nominations, ^he: term of appointment was originally for 45 days. Approximately 4100 Local Compliance Boards were organized and ftuictioned. 5. 1TATURE. There was no provision made for allowance of salaries or expenses to Local Compliance Boards by the Federal Government other than the extension of the franking privilege for all official communications. On October 21, 1933, General Johnson advised that arrangements had been made with the Federal Employment Relief Administration so that relief workers could be supplied to Local Compliance Boards upon request. These workers were to be paid from the emergency relief fund (C. B. Letter #8). Because all State a^d Local CWA projects expired on March 31, 1934, the use of relief workers was discontinued. In the main Local !>IRA Compliance Boards functioned without Federal aid, and although they did a remarkable job as a whole, better results might have been obtained if they had been propierly staffed and allowances made for salaries and expenses. 7* ITvCOE'DUBL' FOR HANDLING COMPLAINTS OF I0HC0MPLIAUCE WITH T:H PRA Local ERA Compliance Boards were not councils of inquisition or compulsion. Their function was primarily to be of service to all em- ployers, who had signed the PRA, by keeping them informed of the meaning of the Agreement and the individual employer 1 s obligations under it. As a guide to be used by all Local Compliance Boards in handling complaints alleging violations of the PRA, General Johnson and the Special Indus* trial Recovery Board rssued the following regulations, which were publish- ed in MA Bulletin #5, "Regulations on Procedure for Local NRA Compliance Boards", dated September 12, 1933: "(a) Receipt of Complaints . (1) All complaints must be presented to the local 1-TRA Compliance Board (hereinafter called the 'Board'-) in the Employer's community. All complaints should be in writing and signed by the person making the complaint (hereinafter called the ' complainant' ) • (2) The legal member of the Board should be designated as secretary to the Board and should be charged with the duty of riceiving and exam~ inging all complaints. He should reject all those.' in which the facts aa stated, if true, do not constitute noncompliance with the President's Agreement. If he is in doubt as to whether or not the facts stated, if true, do constitiite noncompliance, he should request a ruling from ERA through the Secretary c5 the District Recovery Bpard at the District Office on the stated facts. 9819 -63- ( b ) Notice to E mp loyer of Complaint . ( 1) The Employer should be notified of the compliant. It is very important that this notice be mode in the proper manner. In many instances, mere notice of the fact that a complaint has been filed will be sufficient to induce immediate compliance. The whole tone of any notification, whether written, telephonic, or personal, should be that of assuming that the Employer is complying and that the complaint is due to soma mi sunder standing, which the Employer can clear up by explain- ing the situation to a representative of the Board. The employer should not be given the name of the complainant unless the Employer requests it and the complainant agrees. (2) In no event should the fact that a complaint has been filed against an Employer be made public. (c) Education . ( l) Since in the notice to .the Employer the offer is made to explain the President's Agreement to him, this explanation should be made at the time of giving the notice, if telephonic or personal, or, if the notice was written, by personal interview. These interviews should not be before the whole Board. The legal member or other member or representative of the Board should contact the Employer, informally, for the purpose of clearing up any misunderstanding in the Employer's mind as to the application of the President's. Agreement to him. (?.) If the volume of cases before the Board is so great that the members of the Board are not able to conduct these personal inter- views themselves or where it is impossible for it to handle all cases with necessary dispatch, it may be necessary for the Board to expand. Much of the volume of work on complaints can be handled by appointing representatives of the Board to contact the Employer before the hearing in an effort to induce voluntary compliance by explanation and concilia- tion. These representatives should be appointed ~eople worked on drafting this paragra-rh. I question whether they all intended the same thing by it. On any interpretation the earagraieh apelies only to employees above the minimum wage groue, and ai-ns to give them some protection. Their "compensation", however that is interpreted, is not to be reduced, and their "eay" is to be increased, by an "equitable readjustment", whose ■purpose, on all theories, is to compensate in whole or part for a reduc- tion of hours of work, or -to maintain. in whole or nart long-standing wage differentials, or both. Three theories of this paragraph will be mentioned here. Hach gives a different .meaning to "compensation" . 1. On one theory, "compensation" means weekly earnings and not only must they be kect where they are (even though hours are shortened), but they must be increased by an "equitable readjustment" to preserve the differential between the bottom groum and those above it. This works out as follows: a factory employee now works seventy hours a week for. forty cents an nour, earning &28. 00 -oer week. He is cut to thirty-five hours. He must still get $28.00 per week, plus an "equitable readjustment" to preserve his differential above the bottom group. As his hours are cut in half, his p>ay -cer hour will be more than doubled. As a matter of language, there are arguments that this is what the paragraph means; the phrase "conreensation for employment" appears to have been used deliberately instead of "wages" and if this is not the meaning, wiiat is the purpose of the TDarenthetical phrase "notwithstand- ing that the hours worked in such employment may be hereby reduced"? This construction, however, has been definitely rejected. One reason is the drastically increased labor cost p>er hour which it leads to, as shown by the illustrption already given. Another reason is shown by the following illustration; two men are working in the same town at the same rate ioer hour and at the same kind of work, but one man is work- ing more hours cer week than the other and hence is receiving more dol- lars per week than the other. Both of them are working more than the maximum number of hours. Under this interpretation, one would receive more dollars per week than the other, when they both worked the maximum week of thirty-five hours. 2. On another theory, " compensation" means the general level of weekly earnings in th^ industry for the particular kind of work in ques- tion. This construction will permit the reduction of the weekly earnings 9819 -78- of an employee receiving more than the general level of weekly earnings in the industry, hut would prevent an employer from depressing .the level *? re '"ly -.■ Ti -c -:i ccc^int of the shorter hours. He would he ohliged, hy an equitable readjustment, to increase the hourly pay (in the case of persons paid by the hour) so as to preserve the general level and also so as to preserve wage differentials* This interpretation is more flexible than the first one considered here, but has been rejected on account of its 'vagueness and the difficulty there would be in applying it. 3. The third construction is the one which Interpretation numbers one and twenty attempted to make plain. On this construction, the word "compensation" means cents per hour in the case of those paid by the hour and means dollars per day, week, month of year. in the case of those paid by the day, week, month or year. In other words, the employer promises not to reduce the quoted basis of pay. Under this construction, persons paid by the hour earn less per week when their hours are cut, and an equitable readjustment is to be made to compensate in some degree for the loss of earnings and also in view of wage differentials. An employee paid by the day, week, • or month, on the other hand,. would receive just as much for the shorter day, week, or month, and the only occasion for an increase by an equitable readjust- ment would be to preserve a wage differential. The main difficulty m ith this construction is the indefiniteness of the notion of equitable readjustment, especially in the case of an employee paid by the hour. This construction rejects the view that an employee paid by the hour must receive as much for the shorter week as he-formerly got, but at the same time, it recognizes that his hourly pay should be increased to some degree on accoant of the decrease of his hours. But to what degree should the hourly pay be increased? What is the level of weekly earnings that we are shooting at? This is the nub of the difficulty. It has been suggested that a forty hour week should be considered as normal, and that therefore the level we are shooting at is the level of weekly earnings which the employee would have had if he had worked for forty hours a week at his eld rate. It was felt that this rule was a reasonable one, but that to lay it down flatly in an Interpretation would amount to a change in the President's Agreement. It is therefore hinted at, instead of being expressly stated, in examples 1 and 2 in Interpreta- tion number one. In Interpretation number twenty, the notion of "normal work week in the industry" appears in place of the hint of forty hours as a normal work week. There are some cases, however, in which it is not fair to take the worker's present hourly rate as a figure to use in comouting what he would earn in a forty hour week or a normal work week. His wages may have been recently increased, or they may have been abnormally high, or a forty-hour week based mi them might place the employer at an unfair competitive disadvantage. It was indicated in Interpretations number 1 and 20 that the "equitable readjustment" might properly take account of factors like this. 9819 ,-79*r The basic difficulty in interpreting oaragraph 7 is this: wo want a construction that is precise, so that a business man will know just what he is to do. At the sane time, we want something flexible enowh to be fair in the many special cases that we will never know about ahead of time* We must choose between definiteness and flexibility. I doubt whether there can be any very satisfactory compromise between them. The latest suggestion that has been made is that employees paid by the hour should receive the rate of -oay which was prevailing on July 15, 1929, if higher than their present rate. It has been suggested that this should be laid down as a rule and also that it should be stated by Gen- eral Johnson as his notion of what an "eaui table adjustment" would be. Wage differentials would thus be frozen to the July 15, 1929 level, and equitable adjustments to preserve wage differentials could probably be omitted. This proposal has the advantage of definiteness. Its chief disadvantage is its rigidity. There will also be cases in which work of the kind in question did not exist in July 15, 1929. A draft interpretation along these lines is attached (3ee Page 121), It should be noted that this interpretation makes a sharp differ- ence in the treatment cf those paid by the day or week and those paid by the hour and that this line of division is by no means always the same as the division between white collar workers and factory workers. This is true, also, of Interpretations 1 and 20, and is due partly to the way the PSA is drawn. Franklin S. Pollak. SUGGESTED INTERPRETATION OF PARAGRAPH 7 Employees doing work of a character rr hich was paid by the employer by the day or week on June 15, 1933, shall be paid the same amount per day or week as they are obtaining now, even if their oresent day or week is shortened by the Agreement. Employees doing work of a character which was paid by the employer by the hour on June 15, 1933 shall be paid at the hourly rate which prevailed for such work in the same community en July 15, 1929, or at the present rate, whichever is higher. 9319 -80- AFEEEDIX B BLUE EAGLE DIVISION, ERA I. ESTABLISHED - AUGUST 10, 1933 I:: Office Order #2, dated August 10, 1933, signed by T.S.Hammond, Executive Director, President's Reemployment Program, General Hammond announced that on and after that date, the designation of his office would be "El.ue Eagle Division, EPA".. On August 23, 1933, General Hammpnd, Executive Director, Blue Eagle Division, announced (con- firming verbal instructions previously given) the appointment of Mr. Ray D. Smith as Executive Officer of the Blue Eagle Division in . ". addition to his duties as Assistant to the Executive Director of the President's Reemployment Program. (B.E.D.II. ,#l). II.., PURPOSE On August 11, 1933, R. D. Smith, Assistant to the Executive Director, Blue Eagle Division, ERA, in a memorandum announced that General Hammond's Division was charged with the administration of ERA Bulletin #.3.., "The President's ReemplojTaent Program", dated July 20, 1933. This announcement was confirmed by G-eiacral Hammond in Blue Ea,glc Division Memorandum #1 (B.E.D.M.#l) , dated August 23, 1933. III. 'ORGANIZATION' A. SECT I PITS 1. EXECUTIVE SECTION (a.) Duties - To clear all administrative natters regarding: (1) Decisions of policy cither within the division or from the PEA Policy Board (2) Requests for expenditures of money (3) Personnel (4) Contacts with other governmental departments (5) Liaison contract with 26 Bureau of Foreign and Domestic Commerce District Offices. (b) PERSONNEL (l) Executive Director, Blue Ea^le Divisicn - T. S. Hammond - August 10, 1953, Office Order #2 - Memorandum signed by T. S. Hammond as Executive Director, President's Re- employment Program; also B.E.r.M.irl and #10. T. S. Hammond transferred from PEA to ERA - September 16, 1933 - 0. 0. #35. 9819 -81- (2) Executive Officer, 3. E. Division and Assistant to the Executive Director - R. D. Smith - Ilcmo dated Au nst 11, 1953; 3,E.D.M.#1 and #10, dat id k ! 33 a d September 7, 1933. (3) Assist b to Executive Director and Liaison Officer to PEA Policv Board - ICilbourne J hi-.stdii - 3.E.D.M,#10, September 7, 1933. (4) Assistant - T.C-.Earl'- - August 10, 1933 - . RA Executives (5) Assistant - George 3. Martin, August 18, 1933 - 1THA Executives (G) Assistant - R. YM Crain, August 10, 1933 - ERA Executives (7) Chief Clcrh - Lawrence Cardwell, August 16, 1933 - I31A. Executives IEFOEHATIOi: SEOTIOIT (B.E.D.M.#2, 7, 10 and 13) U) I-" CMA30S - George 3. Martin - August 31, 1933 Memorandum. Relieved August 31, 1933. (B.3.D.M.#7) (b) CEIEE-- 3. U. Crain - August 31, 1933 - B.E.D.M. #7 and #10. Handle all callers requesting in- formation re 3.3. 3 P3A - B.S.D.M.#2 and 7 and 10. RECOVERY 3C33.DS SECTI01T (3.3. D.M. #2, 10 and 13). (a) DUTIES (l) Maintain contact with field through State and District Recovery Boards end Councils 3. 3. D.M. #2 end 10 end Memorandum dated August 11, 1933. (?.) Consider certain roatters pertaining to IiRA Local Conrdtcccs - 3.E.D»M.#2. (b) F33S0I3T3L (1) Chief - 3oaz Long - August 11, 1933, Memorandum and 3. E. D.M. #10. (f) Assiste.nt Chief - D. C. Gla.ssic - 3.3.D.M. #10, Scro ember 7, 1933. 9819 ■ -82- 4. COIPLAIilTS SECTICB (B.E.D.K. #2, 10 and 13) . (a)' DUTIES ' (l) Handle all complaints from field as affecting operation of PEA, including infringement of use of Slue Eagle - August 11, 1933, memorandum and B.E.D.M. #2 and 10. (b) PERS01TBEL (1) Chief - John D. Moore - August 11, 1933, Memo and B.E.D.M.#10. (2) Investigator - Thomas F. Bice - B.E.D.K. #10. 5. niTEEPBETATIOB SE0EIO1T (E.E.D.M.#2, 10 and 13) (a) DUTIES (1) Information by mail as to how to get the Blue Eagle - Aug. 11, 1933 Memorandum. (2) Interpret the PHA - B. E.D.I.:. #2 and 10. (b) PEB50MEL (1) Chief - Colonel Lester C-. Wilson - August 11, 1933 Memorandum. (2) Chief - E. S. Long - August 29, 1933- Memorandum from Bong to Dictators also B.E.D.1.1.#10, September 7, 1933. (3) Assistant - 1. 3. Pitts - September 7, : 1933 -■ B.E.D.B.#10. (4) Assistant - G. C. Hinckley - September 7, 1933, B.E.D.i.I.#10. (5.) Assistant - T. G-. Early - September 7, 1933, B.E.D.M.v-10. 6. EXCEPTIONS SECTIOB (B.E.D.M. #2, 10 and 13) (a) DUTIES (l) Receive all petitions for Exceptions under Paragraph 14, PRA - August 11, 1955, memo- randum jvnd B.E.D. I.;.-;-- 2 and 10. 9C19 (b) PEESOl^EL (l) Chief - '... H. Pcttit -- Aiiust 11, 1933 Mo] (.-.) Assistant - J. C. Cowling - NRA, Executive dated August 18, 1935. (.?) Chief - J. G. Cowling - September 7, 1033 . . b. ::. #io. (3) Assistant to Chief and Legal Adviser - Franklin S. Pollak - September 7, 1933 - T. E. D. i.l« 7,-10. (•!■) Assistant - L. M. Brin - September 7, 1933 ?. E. D. !i. #10. 7. IITSIGITIA SECTICT (a) D UTIES (l) Physical distribution of 3. E. - I [emor a: . dun Augu st 11, 1935. (?) remission to reproduce 3. E. - Memorandum August 11, 1933. (b) P EhSCn iSL (1) In charge of original office - later known as Insigni? Section - Alvin Brown. (2) Chief - E. M. Jeffrey - August 11, 1933. (3) Assistant - tf.M.Duvall - August 11, 1935. (4) Chief-'.'.:.:. Duval 1-Sarly part cf Sept. 1955. (c) COLLECTS There appears to be some question regarding the Insignia Section coming under the Blue Eagle Division as 3. E. Division Memorandum 1 s beginning August 23,1935 make no reference to this section. TRADE ASSOCIATION SECTION (B.E.D.M.#2, 5, 10 and 15) (a) DUTIES (l) Establish contact with and assist members of Trade Associations in coning under PEA- August 20 , 19 35-3 .E .D. !I.#2. 9819 -84- (<0 Have investigations made vrith referer.ee to complaints of sudden and high in- creases of prices for commodities pur- suant to signing ERA and not under Codes- • • August 31,1932 - B.E.D.H.#5. (o) PE3S01IKEL (l) Chief - A. S. Young - September 7, 1953 - B.E.D.M.#10. IV. REOEC-AHIZATION A. AUTHORIZED - September 16, 1953 - 0. 0. #35. B. ALL SECTIONS ABOLISHED - September 50, 1953 - 3.E.D.M.#13. 9819 -85- APPEPDIX C BLUE ■ DIVISION '' 3330 I. AUTHORIZED - ' , 1333 - 0. 0. #3c II. PURPOSE - 3.E.D. . #13 - Se it ember 30, 1933 ' • Ai" i. isTgrnci: 0- -■::, pu pppoupp coaplic.paa: poapps 1. SUPERVISION STATE APD DISTRICT 30ARDS 2. creation c: lo-cllL j ..; pliaitce . oaaos 3. HANDLING C 3- DOIAEKDvIIOiTS AUD REPORTS 01" :0PPLAIPT3 AND PETITIONS COPE G PR01.i COI.iPLIANCE BOARDS 4. HANDLING Or rjTAEPAETATIONS 03 PEA iATP VARIOUS SUBSTITU- TIONS THE A TO III. ?::asct:al and duties A. C IPP - Prank Hoaly - September IS, 1933 - 0.0. #35 and 3.E.D.i.;. #13 1 . ASSISTANT C HIEF APD ACT ING CPtIPP IP A BSENCE "" THE GHIEP P. Johnston - September 30, 1933 - E. E.D.I... #13 2. COUNSEL - PranPlin S. Pollak - September 30, 1933 - 3.E.D. Ii. #13, responsible foi handling ol complaints rnd peti- tions and all matters in connection therewith (a) ASSISTAPT COUP: EL - U:i. P. 3?aynsT7orth - September 50, 1933. ".P.P. O.P. #13 - Responsible for inter- pretations one e:cplanation of PPA and various sub- stituti :ns thereunder. 5. ASSISTANT POP. RECOVERY BOARDS - Poaz Long - Sept. 30, 1953- P.E.D.O.P. # 13. Responsible for the handling of all mat- ters arising in connection vrith State and District Recovery 3oards. 4. ASSISTANT TOP COLPLIAITCP BOARDS - John Svrope - Sept. 30, 1935 - B.E.D.O.N. #13. Responsible for handling all natters- arising in connection vr ith creation and functioning of local Compliance Boarc s. 5. ASSISTALTT POP OEEICE iCANAGPE A 5 - 5. G. Earl—Sept. 30, 1933 - P.P. P.O.... #13. Responsible for all natters con- cerning the propermechanical function of the Division :vnd 9819 IV. -36- maintain liaison vrith end "betueen the organization. TEPIIIITATIOIT - Octooer 26, 1933 - 0. 0. #40 A. 1-LUL EAGLE DIVISION CKAIKE^ TO ZLEE IAGLI lAAU'CE, GOi.?LIAIICE Division 9819 .. .. appendix d compliance division, nea i. established - october 25, 1953 - office obdsh ■ ii. purpose - office order #. a. pr& and codes Charged with the duty of attempting to r&Just all complaints of violations of the PEA and Codes of Fair Competition. 3. REOI 01 : AL AGENCIE S Set up and supervise such Regional Agencies as may be deemed necessary to effect such adjustment. C. PggHAJvgllT REGION. J.- ERA COMPLIANCE SYSTE M Proceed to crer.te a permanent Regional ERA Comolisnce System. III. ORGANIZATION A. HEAD - NATIONAL COKPLIANCE DIRECTOR 1. General Johnspn, Acting, pending appointment of rational- Compliance Director - Office Order #40. 2. Robert "•• . Lea, Acting for Johnson temporarily pending per- manent appointment - Heleo.se #1510 - November 2, 1933. 3. William H. Davis, appointed rational Compliance Director - November 24, 1933 - Office Order #45. (a) ASSISTANT NATIONAL COMPLIANCE DIRECTORS November 29, 1933 - Office O r der #45. (1) A. J. Altmeyer, Relieved 4/12/34 - Office Eemo. 7 #180 (2) IE Johnston, Relieved 4/12/34 - Office Memo. #180. (3) Frank Eealy, Relieved 4/12/34 - Office Eemo. #180- January 25, 1934. Office Eemorandum. 4. Above positions abolished April 12, 1934 - Office Order #85. 5. c hief - A. J. Altmeyer - 4/12/34 - Office Eemo. #130. (a) Assistant Chief - Em. Jay Hoff - C.D.O.E. #17. (b) Counsel - H. S. Pollak - C.D.O.E. #17. (c) Economic Adviser - H. Eeiss - C.D.O.E. #17. 6. Chief - L. J. Martin - July 11, 1934 - 0. IE -^250. _ B. BRANCHES 1. ADEI EI STRATI VE BRANCH ( CO. #40, 45 and 85; .11. #180; C.D.O.M. #1 end #17) 9819 -88- (a) DUTIES (1) Prepare a report in conjunction vrith Division Administrators anc the Trade Association Division upon the Organization of Code Authorities vith regard to handling prrticular types of com- plaints - CO. #40. (2) Perform those executive functions hitherto per- formed by the folio 1 "ing uersonnel of the Blue Eagle Branch - C.D.O.M. #1 - 11/29/33. (a) Recovery Boards Personnel (b) Compliance Boards Personnel (c) Correspondence anc information (interpretation) Personnel (.&) hail Section Personnel (e) Office Management and Chief Clerk's Office Personnel. (b) PSRSOFME]L (1) Chief - G. C. Boyal, Jr. - 10/26/33. 0.0. #40. Relieved 11/24/33 - 0. 0. #45 (2) Chief - K. Johnston - 11/24/33 - 0.0. #45. C.D.O.M. #1 - 11/29/33. Relieved 4/12/34 - O.H. #180. (a) Assistant - 7m. Jay Hoff - 11/29/33 - C.D.O.M. #1. Relieved 4/12/34 - CM. ,#180 (3) Chief - Mm. Jay Hoff - 4/12/34 - O.LI. #180 Assistant - K. Watson - C.D.O.M. #17. (a) Pield Section Chief - John Svroie - 11/29/33 - C.S.O.M. #7. Relieved 4/12/34 - O.M. #180. Assistant for District Coirroliance Directors - Donald Ren shall - 11/29/33 - C.D.O.M. #1. Assistant for Information and Correspondence G. C. Hinckley - 11/29/33 - C.D.O.M. #1. Assistant for Recovery Boards - Csrl 7'ink - 11/29/33. Assistant for Local Compliance Boards - W. 3. Pitts - 11/29/33 - C.D.O.M. #1. Field Section removed from Administrative Branch and constituted Pield Branch - 4/12/34 - 0.0. 7 #S5. (b) Executive Section Chief - T. G. Sarly - 11/29/33 - CD. O.M. #1. Also #17. Assistant - L. Cardvrell - 11/29/33 - C.D.O.M. #1 and 17. (c) Control and Correspondence Section Ghisf - R. M. Barnett - C.D.O.M. #17. Assistant ~nE. A. Collins - C.D.O.M. #17. 9819 a -- 9- 2. TBADiJPRACTIC: RANCH (0.0. 040, ad #85; C.D.O.M. and #11. ) (a) PUT! (l) complaints i violations oJ: al] )rovi- ionr of approved co< I ■ . Labor Provisions -CvD. O.M. #1. (?) ',- iK.lt. complaints of violations of PRA provi- sion:' other than Labor revisions en letitions for exception therefrom. C. D. O.M. ,,-'1, (b) F MRiyQ.'ILL (1) Acting Chief - K. Johnston 1C/ 26/ 33" -0.0. #40 ( 2) L. D. Tompkins appointed to organize and admini- ster T. P. Division - 11/24/33 - 0.0. #45. (3) Chief - L. D. Tompkins - 11/29/33 -C.D.O.M. #1. (a) Assistant, John Hiff - ll/29/33-C.D.O.M. #1. (b) Assistant, H. II. Waller " ' " " (c) Assistant, Major P. A. Price " " " (4) Chief - J. w. Mayes - 1/25/34 -O.M. & C.D.0.iJ.#ll- 1/3Q/34 relieved './12/34 (a.) Legal Assistant - George J. Feldman - l/30/3< - C.D.O.M. #11. •(b) Assistant - Ho^ar-, •<. Wells in charge of . Complaints 11/9/33 - O.M. 3819 -91- ('6)' Counsel - Wm. P. Farnsworth, in charge of Interpre- tation:: and Substitutions - 10/28/33 - O.M; Farnsworth transferred Amusements Section - 11/9/33 - ").iu. (7) Assistant to Chief - G. C. Hinckley, in charge of Interpretations, Sect on - 11/9/33 - C.l.i. Sr. Assistant to Hinckley - P. C. Alsop - 11/9/33. ).M, (c) AMALGAMATED .AND CONSOLIDATED INTO LABOR, TJRADE PRACTICE AND ADMINISTRATIVE BRANC 5 -• O.9.- #45, 11/-24/33 and C.D.O.M. . #1- 11/29/ 33. 5. ANALYSIS BRANCH (0.0. #85; O.M. #180; C.D.O.M. #17) ( a) ESTABLISHE D APRIL 12, 1934 - Q.r , ^85 (b) ORGANIZATION Aim PERSONNEL (1) Cnief;-'Wm. M. Galvin - 4/12/34 - 3.M. #180 and C.D.O.M. #17. ■ • (2) Administrative Ass't. - J. H. Wootton - C.D.O.M, #17. (3) Trade Practice Consultant - H. R. Heydon - CD. .O.M. #17. (4) Assistants - L. S. Lightner, J. 'E; Peebles, B. M, Williams, C.D.O.M. #17. (5) Assistants assigned by Office of Counsel - B.A. Clune, L. Gay, J. Hallam, T. C. Marshall, F. Meely-C. D.Q.M. #17. 6. FIELD BRANCH (0.0. #85; 0.:,. #180; C.D.O.M. #180) ( a) CONST ITUTED 4/12/34 - 0.0. #85. ( b) ORGANIZATION A11D PER SONNEL (l) Chief - John Swope - 4/12/34 -O.M. #18C and C.D.O.M. #17. (a 1 ) AeministratLueAssistant, G." C. Hinckley - C.D.O.M. #17. Assistants - R. Byers, R. Donovan, II. Dotterar, M. B. Pitts, J. J. Reinstein, N. Shirley- C.D.O.M. #17. 7. GOVERNMENT CONTRACT AND COMPETITION JLCTION (0. 0. #35; O.M. #180; G.D.D.H. #17) ( a) ESTABLISHED 4 /12/34 .0. #85 (b) OR GANIZATION (a 1 ) Assistant - G. V. Johnson - CD. 0,'M. #17. ■ • (b>) Assistant - John Knox - " " 9819 -92- C Pnu.IAn.I3T ADVISERS TO COMPLIANCE DIVISION (Authorized by 0.0. #-.:0 10/ 36/ 33) 1. OFFICE OF THE COUNSEL (0.0. #40 and #45; O.M. #130; C.D.O.M. #1 & #17. ' ' '. . (a) COUNSEL - Franklin S. Pollack, designated by Legal Division - 11/24/33 - 0.0. #45 and C.D.O.M. #1 - 11/29/33. (b) A SSISTANT - Wm. M. Galvin, Assigned to Chief, Labor Branch - 11/29/ 33 - C.D.O.M. #1. Relieved 4-/12/34 - O.M. #180. (c) ASSISTANT - Frank Hursey - 11/29./ 33 - C.D.O.M. #1. ( d) LEGAL ASSISTANTS •,(l) Assigned to E.. W. Wells, Ass't Chief, Labor Branch for PEA Exceptions, ' ' (a 1 ) G-. V. Johnson - 11/ 29/33 - C.D.O.M. #1. (b>) J. E. Meels - " " ■ H [■ (2) Assigned to R. M. Barnett, Ass't. Chief Labor Branch for PEA 'Complaints ' "(a r ) E. A. Clurie - li/29/33 - C.D.O.M. #1. (3) Assigned to Ben M. Williams, Ass't Chief, Labor Branch for Code Complaints (a 1 ) Thomas Marshall - 11/29/33 - C.D.O.M. #1. (4) E. A. Riley - 11/29/33 - C.D.O.M. #1. (5) Assigned to Wm. M. Galvin, Chief, Analysis Branch (a') E. A. Clume - C.D.O.M. #17. ' (bO L. Gay - " " " (c') J. Hal lam - " " (cl 1 ) Thomas Marshall- " " " (e 1 ) F. Meels - " " (6) Assigned to Wm. Jay.Hoff, Chief Administrative Branch (a 1 ) K. Watson- C.D.O.M. #17. 2.L0EFICE OF ECONOMIC AND STATISTICAL ADVISEE (O.n. #40 and #45; C.D.O.M. #1.) (a) ECONOMIC AND STATISTICAL ALVISEE - Stanley I. Posner, designated by Research snd Planning Division - 11/24-/33 - 0.0. #45 and C.D.O.M." #1. ' ' 9819 -93- IV. T1EMI7ATI0N - AUGUST 29, 1935 (OFx'IC,: IIHTSUCTIOH $2) A. PLBSONAL SLCOKDS All SERIAL OV THE COMPLIAFGu EI VI 31 ON, NRA, Regional and State Office:, were transferred to the Field Division, KRA. 9819 -94- . APPENDIX E NATIONAL COMPLIANCE BOARD I. ESTABLISHED - October 26, 1935 - Ofiice Order #40. II. PURPOSE - Office Order #40 A. PRA POLICY BOARD Perform all necessary duties and functions of the PRA Policy Board abolished. B. COMPLAINTS Upon reference of complaints from the National Compliance Direc- tor, to undertake further attempts to adjustment, recommend excep- tions, remove the Blue Eagle or recommend referrence to the Federal Trade Commission or the Attorney General for appropriate action. III. ORGANIZATION AND PERSONNEL A. C HAIRMAN National Compliance Director, Chairman (0.0. #40). 1. Pending appointment of a National Compliance Director, the following acted as Acting Chairman: Colonel Robert ¥. Lea, Kilbourne Johnston, G. C. Royall, Jr., W. J. Hoff and Stanley 1. Posner. 2. Wm. H. Davis, National Compliance Director, 11/ 24/33 - 0. C. #45. Relieved as National Compliance Director, 4/12/34 (0. 0. #85 and 0. M. #180), but continued as Chairman, National Compliance Board until about May 15, 1933. 3. Dr. Altmeyer and Captain Henry Williams acted as Chairman' until the Board was abolished on Hay 21, 1934. B. IN DUSTRIAL ADVISE R - Appointed by the Chairman of the Industrial Advisory Board. 1. C. L. Keyniger, Acting Adviser - 10/3^/33 2. L. D. Tompkins - ll/l/o3 3. W. J. Barrett, Acting Adviser - ll/l6/33 4. R. J. Hamilton - 11/20/33 5. C. J. Ramoberg - 11/21/33 6. C. J. Rumley, Acting Adviser - 11/25/33, Adviser - 5/10/34 7. Hugh Comer, Acting Adviser - 1/23/34, 8. B. A. Brennan, Acting Adviser - 1/27/34. Adviser - 3/5/34 9. 1. W. Tangerman, Acting Adviser 3/6/34 10. C. W. Churchill, 3/30/34 11. C. K. Sudler, Acting Adviser - 5/2/34 9819 -95- C. LABO R ADVISER - Appointed "by the Chairman of the Labor Advisory Board 1. Dr. Leo Wolman - 10/30/33 2. Dr. W. J. Woolston, Acting Labor Adviser - 11/8/33 3. T. F Behney, Acting Labor Adviser - 11/13/33 _ Adviser n/14/33 D. EXECUTI VE SECR ETARY 1. G. C. Royall, Jr. - 10/26/33 - 0. 0. #40. E. COUNSEL - Assigned by Legal Division, ERA 1. Franklin S. Fellah - 10/26/33 - 0. 0. #40 and #45. F. ECONOM IC MP STATI STICAL A DVISER - Assigned by Research & Planning Division 1. Stanley I. Posner - 10/26/33 - 0. 0. #40 and #45. G. ASSISTANT RATIONAL COMPLIANCE DIRECTORS 1. A. J. Altmeyer - 11/34/33 - 0. 0. #45. Relieved 4/12/34 - 0. 0. #85 and 0. M. #180 2. Kilbourne Johnston - 11/24/33 - 0. 0. #85 and 0. M. #180. 3. Prank Healy - 11/24/33 - 0. 0. #85 and 0. M. #180. 4. J. M. Mayes - 1/25/34 - 0. H. Relieved 4/12/34 - 0. 0. #85 and #180. H. POSITIONS AND TITLES OF NA TIONAL COMPLIAN CE D IRECTOR AND ASSISTANT COMPLIANCE DIRECTOR - Abolished 4/12/34 - 0. 0. #85. IV. TERMINATION - May 21, 1934 (0.0. #90) A. 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" See "Professional Occupations" . r?^?^ S MUI&KT ..CLUB ENTERTAINERS (JUVENILE) - Such minors arc pro- Slinp? /£f 0m workin g. if the theatre or club wants the Flue Eagle (Card ffilB^; (*). Also see ii MinorG n and nparagraph #1 , PRA" . iDVERTISEAGNTS , NEWSPAPER - "A newspaper may not accept advertisements carrying trie Blue Eagle n'nt.iT advertisers' names arc actually posted on the honor Roll, or else until the employer produces some receipt or to enumerate NRA members unless all are included. Any list that does not include all establishments that come under the. Eagle must definitely state in the advertisement or at the head of the list that this is only a partial list and dies not include all. The idea of this is of course to prevent any NRA member who does not agree to pay to have his name included, from being considered by consumers as not among those who have joined." (Card #1183 and release #731). AGRI CULTURAL , WORKERS - "Agricultural workers are all those employed by farmers on the farm when they are engaged in growing and preparing for sale the products of the soil and/or live stock; also, all labor used in growing and preparing perishable agricultural commodities for market m original perishable fresh form. When workers are employed in pro- cessing farm produces or oreparing them for market, beyond the stage customarily performed within the area of production, such workers are not to be deemed agricultural workers." (Drafted by Dr. Wolman, Chairman NRA Labor Advisory Board, approved by George N. Peek, formerly co- Administrator, AAA and General Johnson). APPRENTICES - "The minimum wage provisions of the Agreement do not apply to apprentices if under contract with the employer on August 1, 1933, but no one shall be considered an apprentice within the meaning of this interpretaticn, who has previously completed an apprenticeship in the industry." (Basic Interpretation #9, General Johnson, NRA Bulletin #4). "Employers are permitted to hire apprentices after signing the PRA, but not at less than minimum wage unless such apprentices were under con- tract-prior to August 1, 1933, unless specifically provided for under a substitution to the PRA. Apprentices are not considered as professionals except that in schools such as nursing schools, where the training is professional, they are excepted from wage and hour provisions. Where (*) "Card # J' refers to the cards on which were incorporated the various interpretations , etc., promulgated by the Blue Eagle Divi- sion, NRA. 9819 -135- substitutions to the PEA limit the .percentage of apprentices that may be employed, the percentage shall be based upon the number of employees in the particular establishment affected. 'No employee shall be con- sidered an apprentice unless there is a definite agreement between him and his employer as to. the length of his apprenticeship and the amount of remuneration during said apprenticeship.' (C^ S* Long). No one shall be considered an apprentice who has previously completed an apprenticeship in the industry." (Card #1188). "Employers are not expected to hire or contract for apprentices after they sign the PRA. Interpretation #9 ; referring to apprentices, covers only those who are actually apprentices before August 1, 1933. The object of the President's Reemployment Program is to put unemployed men back to work. Therefore, why train younger men for positions that can now be filled with unemployed men? Apprentices, during the period of apprenticeship may be paid at a rate not less than 80^ of the minimum rate; such apprentice class shall not consist of more than 5$ of all em- ployees in any establishment . Each factory would be a separate establish- ment. (Lt. Johnston). ARTISTS (INCLUDING COMMERCIAL ARTISTS) - See "Professional Occupations". ARTISTS, PHOTOGRAPHIC - "The status under PRA of Photographic Artists is: (1) Complete exceotion for those receiving more than $35.00 per week, (2) Actual artists are excepted, (3) Others of this class, not covered by Paragraphs 2 and 3, are to be averaged at 40 hours over a 6 weeks period." (Policy Board or thru Mr. Richberg, August 25, 1933). Also see "Professional Occupations." BACK WAGES DUE EMPLOYEES BY VIOLATIONS OF PRA, POLICY ON COLLECTION - "The NRA Policy is well established that the National Comoliance Board or a local Compliance Board may properly require an adjustment by restitution of back pay as a condition to continued display of the Blue Eagle under PRA or as a condition to restoration of the Blue- Eagle. A number of local Compliance Boards are on record as refusing to put themselves in the position of collection agencies. As a matter of -practical administration we may advise the Local Compliance Boards to assist in recovering back pay. The Local Compliance Boards may adopt the policy of withholding recommendation for removal of Blue Eagles from violators of PRA who make restitution to employees." (National Compliance Board, December 13, 1933). BAKING INDUSTRY - "Bakery deliverymen should be limited to a 40 hour week as. called for in the substitution (paragraph 2) to the PRA approved for the industry." (Advisory Council, Compliance Division, June 6, 1934( , "Outside salesmen as it appears in the Baking Industry substitution, shall be interpreted to mean the same as the term "salesman" as defined in Section 6, Article II of the Baking Industry Code which became effective July 9, 1934 which says 'The term salesman as used herein shall mean the employee -on bakery routes, whether wholesale, house-to-house, or other- wise, and any other sales employee whose principal duties and functions are performed not less than 6£fj of his working hours outside the establish" ment or any branch thereof by which he is employed, and who regularly delivers the bakery products which he sells.'" (Compliance Council, NRA, July 16, 1934). -134- BAM CONSERVATORS AND BAHI EECgrfeRS - "If the bank desires to display the Blue Eagle they" come within PRA. " (C. S. Long). BARBECUE AND HOT DOC- STANDS - "-Considered as restaurant's under the PRA- " (C. S. Long). "Tips received "by -such employees are not apart of their minimum compensations » (L.' G. Wilson, August 19., 1933). BARBER Aim BEAUTY SHOPS «•• .■•:■. ■:••*■■. Subletting of Chairs in Barber and Beauty Shops - "A barber who subleases- a chair in a 'barber -'shop and who -also operated on this "basis prior to June 16, 1933, is an independent contractor end is subject to-, neither maximum hour nor minimum '-'-wage provisions." (C. S. Long)-. • -.- -r^.* Barbers Paid Solely on Commissions -- "I Under the substitute pro- - visions applying to" "barber and beauty shops, all barters (except those- . exempt in Paragraph 4, PRA, and owner-operators, without employees) are limited to a 48 hour work week. All barbers (except as mentioned above) are limited as to maximum hours ""but are not limited as; to minimum wage." (Lt. Johnston). This latter interpretation appears "to "be illogical, and was never enforceable. Barber Shops and Beauty Shops, without Employees - "There has been a great deal of :: difficulty over the barber and' beauty shop substitution especially so -as' they have attempted to limit, the hours of the small ■ shops to 52. -It is, of course, possible for one man shops to get the-' Blue Eagle, by the- owner "signing the straight PRA, but it. is the opinion of the Deputy Administrator in charge of the Code that submission will be hastened and participation increased if the idea gets- around that the entire industry is bound by the substitution. The Board has taken a midway stand, on. this .and. has sent" the attached letter to the Associated Master Barbers of America. Of course, if a man writes in and asks a -point blank cuestion, 'Can I get the- Blue Eagle by- signing the PRA with- out substitutions', we must tell him that he can, but where possible, . use a copy of this letter as an answer. Partnership and owner operated Barber and Beauty shops, without- employees, are limited to 52 hours per week- of shop operation in order to operate- under the substitutions grantee and signed by Administrator Hugh S. Johnson on August 8,. 1933 for the Barber Shop end Beauty Shop Industry. This limitation will continue in effect .until the matter is finally settled by approval of a Code for the Industry by the President." (PRA Policy Board - 7. P. Farnsworth). BARTER LEAGUES - "Barter Leagues employing help and paying with food, shelter .and other necessities of life are not exempt from the- PRA. • Such employees, must receive, at least the' minimum wage and must not be re- quired, .to., work in excess of the maximum hours permitted by the PRA and any substitutions: thereto... Whether the employees receive compensation in .money or .commodities', etc. is a. matter for adjustment, between the em- ployees-rand the League.." ' (C S. Long). '. •'--.., .... BATTING AND PADDING INDUSTRY ( SUBSTITUTIO NS) : - Definition - "The term ' 3r,t ting and padding --'industry' as used herein is defined to- mean the manufacture of bat ts and pads. These batts or pads are manufactured principally from ;: Cottoii-b : r wool fibres processed over -garnett machines or -cards ft r re sal e : purposes. These batts ' or pads are used primarily by 9819 -135- the purchaser to upholster automobile bodies, to upholster furniture, and for insulating panoses, as well as in the manufacture of comforters t trasses, and other products so filled." (PRA Policy Board, August 9, 1933). BEAUTICIANS - See " Barters". BEAUTY SHOPS - See "Barbers". DSC-IKi'ERS - See "Students and Learners". BILL COLLECTORS, OUTSIDE 0" CU ii.IS SlL" - See "Cora: dssion ' 'orkers" . BLUE STARS 0" IUSIC-UIA ~ See "Insignia". B0ARDIi T G HOUSES - "If small and they are really private homes the few domestic servants are excepted. But if in competition with restaurants, the restaurant substitution applies. If large establishments and run on a hotel basis, employees 'are subject to the PRA. ." (Lt. Johnston). BOARDS OF TRADE - See "Chamber of Commerce". B G 0T BLACK STAND S - See "Shoe Shine Stands". BEANCH ESTABLISH MENTS - (Chain store branches, etc.) "In cases where there are not more than two employees in towns of less than 2,500 and not part of a larger trade are-'., employees are not subject to maximum hours. (Paragraph 4, PRA), because the manager signs the Agreement and the Certificate of Compliance for his own o rticular branch. The wages of these employees should be raised at lea.st 20$. If raising of wages 20^ brings the pay above the minimum specified for that particular busi- ness, then they need be paid only that minimum." (Card To. 1199, also see Executive Order =6710 which refers to "not more than 3 establishments" rather than "2 employees"). "'.here the manufacturing establishments, chain stores, chain restaurants, etc. , have many establishments in different locations and different cities, the managers of these branches are expected to sign the PRA and Certificate of Compliance applying to the employees under their control." (Card JJo. 1199). "It is not necessary for the owner of a chain of shops to sign the PRA for each shop in order to display the Blue Eagle in each shop. In cases where the owner of a. chain of shops has signed the PRA, the em- ployees in each shop of the chain are subject to the provisions of the PHA and any applicable substitutions approved thereto." (P. S. Pollak, ITovember 13, 1933). This ruling was not uniformly followed "oy the Compliance Division, ERA. BUYERS (OUTSIDE) - See "Commission workers". CADDIES OP GCLP COURSES - "Caddies are covered by Paragraph 2, PRA. If caddies are employed by a club they must be paid the minimum wage. If the club does not employ the caddies, but merely permits them to stay at the club while awaiting engagements, the caddies are in business for themselves, and wage and hour provisions do not apply." (C. S. Long). 9819 -1367 CANNING INDUSTRY SUBSTITUTION - Sub-paragraph ( c) , Paragraph 6, has been interpreted to mean that the average of the total wages of all employees in Class 3 employed in any one establishment in- the same homework operatio., must eoual the minimum wage for that region. (NBA Bulletin #6). CARBONATED BEVERAGE INDUSTRY - See "Soft Drink Industry Substitution". CARRIERS ON A WAGE BASIS - See "Daily Newspaper publishing Industry Substitution", "Non-Metropolitan publishing-Printing and Printing In- dustry Substitution", and "Newspaper and Magazine Distributing Industry Substitution" . CEMETERY WORKERS - Covered by Paragraphs 2 and 5, PEA (Card -^1202). CERTIFIED PUBLIC ACCOUNTANTS - See "professional Occupations". CERTIFICATE OP CQ1PLIANCE - See "Date of Compliance". CHAIN STORE BRANCHES - See "Branch Establishments". CHAIN STORE MANAGERS - Such managers do not come under the "very special case 1 ' clause of paragraph 4, PRA, the $55.00 clause applies and they should not be worked overtime even though they are paid time and one-third for overtime. (Lt. Johnston). See "Eranch Establishments" . CHAMBERS OF COMMERCE - "Chambers of Commerce are expected to sign PRA and put into effect the provisions of the Agreement with respect to hours and wages of employees. If a Chamber of Commerce desires a stay of the provisions of the PRA respecting wages and hours of employees, it cannot approve its own application for relief, but must secure approval from some other organization in its community such as the Rotary Club or the Kiwanis Club." (C. S. Long). CHARGES FOR MEALS, RENT, LAUNDRY, ETC .- See "Deductions from Wages". CHARITABLE ORGANIZATIONS - See "Non-Profit Organizations". CHILD LABOR - See "Paragraph #1, PRA" and "Minors". CIGAR MANUFACTURING INDUSTRY - " . . the rate of pay for all 'strippers' whether machine or hand shall be 22-^ an hour minimum" - this refers to paragraph "C" of the substitution to the PRA approved for the industry. (Advisory Council, Compliance Division, May 23, 1934). CIGARETTE , CHEWING, AND SMOKING TOBACCO AND SNUFF IND USTRY - ( Sub- stitution for paragraph 6, PRA) - "The minimum wage for stemmers, etc., on piece work must yield an average return to the workers as a group in that classification of not less than 25tp per hour. The average return shall be calculated on a group basis and not on an individual basis." (Advisory Council, Compliance Division, June 6, 1934). CLERICS IN STORES - "These employees must be guaranteed the minimum wage specified in the PRA whether or not they ore employed on a partially or solely commission basis." (L. G. Wilson, August 19, 1933). 9819 . -137- COLLECTORS - "For all practical purposes outside collectors are regarded in the same light as outside salesmen if working entirely on a commission l sis. If the collecto ' was ;zorking on the basic of a roage plus com- missions, prior to June 16, 1933, .he is considered as coming under the minimum wage provisions of the PRA "but is exempt from the limitations cn working hours." (interpretation Section, Blue Eagle Division, IIRA). COLLEGES (BUSINESS AND PRIVATE V» See "Schools and Colleges (business and private)." CGLLEC-S STUDENTS ■» See "Students and Learners". CGI.IiE.xCIAL ARTISTS - See "Professional Occupations". COkUERCIAL DUPLICATING A1TD :1AILINC r'DUSTRY - "(l) Employees in this industry engaged in regular routine office work for their employer (not filling orders for customers) shall be considered as paragraph 2 em- ployees, (2) Employees in this industry engaged in filling orders for customers, producing such material for mailing and placing it in the mails, shall be considered as productive or factory employees (paragraph 3 employees (paragraph 3 employees)." (Compliance Council, IIRA, June 29, 1934). COIi.ISSION T70RKERS (il l SIDE e-. OUTSIDE) - "At the present writing, sales- men solely on commission ere not defined as employees and consequently do not come under the provision of the PHA as to wages and hours." (Card #1215), "In the case of any salesman who, prior to June 16, 1933, was operating on a guaranteed wage basis and subsequent to June 16, 1933 was changed to wholly commission basis, it will be assumed that the change was made to evade the provisions of the PEA and would be in violation of Paragraph 8, PHA - Subterfuge." (Card -1215). "It is permissible to hire employees on a wholly commission basis subsequent to June 16, 1933, provided it was customary for the employer so to do prior to June 16, 1933, or was customary as applying to the class of employees in that line of business prior to June 16, 1933." (Card #1215). "Substitutions to the PRA approved for particular trades or in- dustries and interpretations thereto may alter the above." (Card #1216). Salesmen on Co mmission having drawing accounts - "If the drawing account is merely an arrangement of convenience between the employer and the salesman, permitting the latter to obtain advances of money which are later deducted from the commissions which are earned, the status as a salesman on commission is not altered, BUT if the drawing a c count is in any way a guarantee, it is considered a base pay arrangement, and in such case the salesman cannot be regarded as a salesman entirely on com- mission." (Card -1216). " Outside Buyer working on commission without any salary guaranty has the saine status as an outside salesman working on commission. The compensation to be obtained in either case is contingent upon the volume 9819 -138- of business." ' (Card #1214). " Outside Collector who works wholly on commission has the same statu as an outside' salesman wholly on commission." (Card #1214). Automotive' Maintenance Industry - "Automobile repair men paid on a commission basis are piece workers, and are subject to maximum hours and minimum wage' provisions Of the PBA and substitutions thereto approved for the Retail Automotive Maintenance Industry J 1 (Card #1579). CONSTITUTIONAL RIGHTS AND/OR -IMMUNITIES - "There can be no inclusions or . changes to the PBA such as 'provided, that by signing the Agreement we waive no constitutional -right or immunity. '" (.Card #1489 ) . CONTRACTS - "The signing of the PRA .does not abrogate any union contract or any other bona fide contracts, nor does it authorize or permit the violation of such contracts." (PRA Policy Board or thru Mr. Richberg, August 25, 1933). CONTRACTS (APPRENTICES) ~ See "Apprentices". CONTRACTS (FEDERAL) - "Existing Federal Laws require that contracts shall be awarded to the lowest bidder. It is the policy of the Adminis- tration, however, to advocate legislation as soon as possible, providing that contracts shall be awarded to f inns and individuals that are members of the NRA." (Card #1226). See "Government Contracts and Loans", page 74; Public Act #369; aid Executive Orders #6246 and #6646. CONTRACTS FOR GOODS AND/pR SERVICES - "Concerning contracts entered into prior to June 16, 1933 with suppliers who later increased prices un- reasonably for goods or services contrapted for before June 16, 1934, purchasers may require proof that such increases were necessitated by reason of the suppliers' adherence to the PRA and that such increases are not in excess of the actual increased costs caused by compliance with PRA. "Paragraph, 12, PRA does not cover contracts made after June 16, 1933. An arbitrary date had to be set and. date of the Act is an appropriate one and especially 'since peak prices at that time'. "Concerning question 'of whether contracts made prior to June 16, 1933 can be cancelled when permanent code goes into effect, in cases where costs of raw materials have increased to such an extent that the finished product must sell below cost; this is not a question under the President's Agreement, but a question of what will happen when a parti- cular permanent code goes into effect. Neither the President* •. Agreement nor any code is intended to abrogate existing contracts. Th- resident's Agreement provides for adjustments in the cases of contract tde prior to June 16, 1933. Whether or not a similar adjustment cla - will be included in the permanent code for this particular indust* is a point to be taken up with the Deputy to whom this industry is assigned." (Lt. Johnston). 9819 -139- "Paragraph 12 PRA presents a simple and concise statement in which the buyers of goods purchased on contract prior to June 16, 1933 agree to make an appropriate adjustment of price to meet any increase in cost- caused by the seller having signed the Agreement or having "become hound by any approved Code. TT o executions are provided in Par-graph 12 other than that such increases are to be made only in cases r *here the seller of goods has either signed the Agreement or has become bound by coming under the code. The PRA is a voluntary agreement of the signer wiJhh the President in vhich the signer agrees to do certain things in order to meet a National Emergency. In view of the fact that the PRA is not law, the application of Paragraph 12 is entirely dependent upon appropriate adjustment between the buyer and the seller. It is in fact almost entirely contingent upon the good faith and the sense of moral obligation and fair play on the oart of the buyer. There is nothing in the PRA which in itself is intended to abrogate existing contracts. The matter of price adjust- ment in Paragraph #12 is one for mutual agreement between the parties concerned." (Card #1488). CONTRACTS (LABOR UK I ON) - "If you have a contract with a labor organization calling for longer hours than the president's agreement allows, and this contract was made in good faith by collective bargaining and cannot be changed by you alone, try to get the labor .organization to agree to a re- duction to the maximum hours allowed by the President's agreement. If the labor organization will not agree, you may apply to NRA for permission to work your employees as many hours a week as the contract calls for. Send to NRA a request for this permission, with a certified copy of the labor contract, and any statement of the fact you desire. "This application will be handled by NRA in the same manner as an application for relief in cases of individual hardship, filed under para- graph 14 PRA, but it will not be necessary to obtain the approval of a trade association or other organization. If NRA approved your application or is :able to bring about any modification of the contract, ^ou will then be granted permission to work employees in accordance with the contract as originally written or modified, and can then sign the Certificate of Com- pliance adding to it the following: 'Except as required to comply with the terms of the agreement in effect between the undersinged and the labor organization.'" (General Johnson, NRA Bulletin =*4). "The following language - 'If NRA approved your application or is able to bring about any modification of the contract' - means thr>t NRA, upon receipt of a petition for permission to operate under a Union Contract, will investigate as far as possible to determine how far the employer has made a bona fide attempt to have the contract modified by negotiation with the Labor Organization. If NRA feels the employer has not obtained all the modification possible, NRA will negotiate directly with the Labor Or- ganization in question." (Lt. Johnston). Also see "Local NRA Compliance Board Regulations for handling PRA petitions to operate under union con- tracts - Exceptions to the PRA", pages 70 to 72 CONTRACT .(OIL COMPANIES) - "The question has arisen as to whether Section V, Article 2 of the Petroleum Code applies to contractors supplying services or material t» the oil industry (such as fabricators of steel plates). The answer is that Section V, Article 2 does not apply to such contractors, 9819 -140- who should operate under their own substitutions for the PRA, unless in fact they are operating within the Petroleum Industry, such as subcon- tractors who drill oil wells." (Card ^1225). CORPORATIONS ^ OFFICERS &Ng STOCKHOLDERS ) - "officers are employees and not exempt from maximum, hour 'provisions, PRA, if under $35.00 ner week. Stockholders who . are employees 1 have '■ the same status.". (Card #1227). COUNTRY CLUBS - See- "Non-Profit Organizations". COUNTY . GOVERNMENT, : EMPLOYEES - See "Governments". CURB SERVICE EMPLOYEES - "Such employees must he over '16 (see paragraph 1, PRA) and must -receive :at least ; the minimum- hourly rate specified in the Restaurant substitution exclusive of tips." (L.G. Wilson, August 19, 1933). DAILY NEWSPAPER PUBLISHING INDUSTRY (SUBSTITUTION) - "Carriers on a wage basis shall be paid -the minimum wage specif iedj for sales employees for a full week and an hourly rate based on 40 hours per week for less than a full week." (National Compliance Board, January 25, 1934). - DAIRIES. SMALL : 1 ,- see "Farmers". DATE OF COMPLIANCE - "It is expected that all employers desiring to co- operate with the President's recovery program will sign the Agreements promptly and mail them in. It is recognized, however,, that it will be physically impossible in many instances to adjust employment conditions and to hire the necessary additional personnel in order to comply with the Agreement on August 1, 1933. For that reason, provision has been made for issuing -the Blue Eagle only upon the filing 'of a certificate fo compliance. It should be possible in most, instances to make the necessary adjustments and file a certificate of compliance within the first week of August, 1933, and such action, taken as- promptly as possible, will be regarded as carry- ing out the Agreement in good faith." . (Basic Interpretation -3, General Johnson, NRA Bulletin #4).-. : DEDUCTIONS FROM WAGES - "Except in the restaurant industry, no deductions for any purpose may be made from the minimum wage in any event. The pay envelope must be delivered intact to the employee. The substitution ap- plying to the restaurant industry provides specif icially that ded.uctions maybe made from the pay envelope for meals furnished to employees, when such was the custom prior to June 16, 193~, and that the amount deducted shall not exceed 25^ per meal or $3.00 in any one week. Inaugurating such deductions, when they were not customary prior to June 16, 1933, is con- sidered a subterfuge until the contrary is proven," (Card #1233) "Bona fide charges as distinguished from deductions may be permitted under certain circumstances if the employee first receives the pay envelope intact. These cover situations in which the employer acts in the capacity of landlord, where he rents, uniforms or where the employer performs some other service for the employee, as where he launders uniforms. If it was not the custom to make a charge for such service prior to June 16, 1933, it should certainly not be made now. ■ -Where a customary charge was made prior to June 16, 1933, for example, for the rental of wearing apparel, or where laundering had uniformly been handled by the employer and a charge 9819 -141- made for it prior to June 16, 1933, the enrol oyer may continue to make a reasonable charge for such service. In every such case it shall be mandatory that the employee have the ootion of furnishing the same ser- vice himself (herself) and be relieved from the charge." (Cards Nos. 1233 & 1234). "There can be no deduction from the pay envelope exceot f^r meals as specifically provided in the rest urant substitution. As to the charges or rental of wearing apparel and for laundering same, in no case should the charge be compulsory. That is, if the employee can suoply himself (herself) with uniform wearing apparel, and is willing to under- take the individual laundering, the employee should be allowed to do this without charge. Further, if it was not the custom to make such charges prior to June 16, 1933, they should certainly not be made now. Where the rental of ^earing apparel has been a customary charge and where launder- ing has uniformly been handled by the restaurant, the employer may con- tinue to make a reasonable charge for such services. In no event may deductions be made from oay envelopes. Also note that no other kind of deducti o n may be made i n any other industry . The only allowable deduction from weekly wages anywhere is that provided for meals in the restaurant substitutions." (Policy Board signed K. Johnston, August 26, 1933). Work Spoiled Through Carelessness - "The ruling of the Textile Code Administrator regarding work spoiled through carelessness - 'garments spoiled thrcugh carelessness of employees real or alleged is one of the risks of business and no docking of employees for sooiled work is per- missible' - may well be used as a basis for interpretation in other lines of business. Deductions for 'work spoiled through carelessness' is one of the most easily abused practices for the ourooses of reducing the minimum wage, and in most cases would be a violation of paragraph 8, PRA." (October 17, 1933 - W. P. Farnsworth). "Reductions from wages cannot be made to cover loss of time or loss of material as a result of carelessness." (October 26, 1933 - Int. Section) . DEFECTIVES, PHYS IC AL OR MENTAL, including Superannuated Employees, ^ho are really Pensioners - See "Sheltered Workers". DELICATE SSE N STORE S - "Selling food products and serving meals should be classed as grocery stores unless they have a real restaurant in connection therewith. When this is true, they should comply with the restaurant substitution." (Lt. Johnston). DELIVERY MEN - "Under PRA, without modification, there is no daily limit of hours of labor; but a definite maximum limit of 40 hours per week. No -provision for overtime. Watch substitution for various trades and industries." (Card #1236). "The Policy Board has held repeatedly and has specifically insisted on the inclusion in substitutions that deliverymen be in a category wholly separate from that of outside salesmen. In general our rule has been a limitation of 48 hours per week. Outside salesmen are completely exempted under PRA. Outside salesmen having delivery functions are not to be classed in the category of outside salesmen to be exe "oted frrm maximum working hours." (PRA Policy Board - Robert K. Straus). 9819 -142- DENTAL ESTABLISHMENTS - See "Prof essional "Occupations. " DEPARTMENT STORE EMPLOYEES - "Employees in departnent store restaurants, barber shops, "beauty sho;os, grocery departments, dry goods and other de- partments shall work under the substituted provisions to the PRA for restaurants, "barter shons and "beauty shops, grocery stores and retail stores., as the case may he, provided they devote the major nart of their time to the particular kind of work mentioned^ Department store workers who attend to such servicing as repairs to electric refrigerators, radio; etc., are considered service employees, under Pa.ragraph 2, PRA. Alterati< workers in department stores are under Paragraph 2, PRA when their dutie! also include those of a clerical or sales nature; hut if the duties are strictly t'hose.of a mechanical artisan nature, they come under Paragraph PRA." (Card #1238). DIFFERENTIALS - "The Policy Board will not create territorial differenti a.fter substitutions to the PRA are granted; hut this matter, of course, majr he adjusted when hearings are held in connection with formulating the permanent code. Employers who find that the lack of a differential ^ork a grea.t and unavoidable hardship, may petition for stays under Paragraph 14, PRA. In allowing differentials as "between the North and South, State boundaries, have in most cases "been the basis for delimination - not citie or trade areas thereof. The Policy Board, therefore, rules that retailer in New, Albany, Indiana, though in the same trade area as Louisville, Ky. , must pay the Northern rate." (PRA Policy Board - R. K. Straus). DIRECT MAIL ADVERTISING SERVICE EMPLOYEES - See "Commercial. Duplicating and Mailing Industry". DISCHARGING- EMPLOYEES - "TheTe is nothing in the Agreement or in the modified Agreement of August 11, 1933 which prevents any manufacturer from replacing incompetent employees with competent ones, providing, of course, they ea.rn the minimum wage and do not work longer than the maxima hours." (L.G. TTilson). See also "Incompetent Employees". DISCHARGE OF EMPLOYEES IN VIOLATION OF SECTION 7(A)' OF NIRA. TTAGES DURING j : UNEMPLOYMENT - The Board voted unanimously to approve the statements of policy contained in the following memorandum dated January 9, 1934, which Mr. Hursey read to the Board: "I am advised "by Mrs. 3. M. Sterns, Administrative Assistant for the* National Labor Board, that in no case has the National Labor Board attempll ed to require payment by an employer to an employee, discharged because of union activities, wages for the time such 'employee was not working. "The National Labor Board has entered into agreements with certain employers to reinstate such discharged employees and in those cases in which the employer failed to carry out such agreement have later required the employer to pay the discharged emoloyee for the time lost after the signing of said agreements." (National Compliance Board, January 9, 19341 9819 -143- D I STRICT OF COLUMBIA - "The District of Columbia is meant to be excluded from Southern State listings unless it is specifically included." (Card #1317). DOMESTIC EMPLOYMENT - "Includes cooks, waitresses, kitchen maids, chamber- maids, butlers, laundresses, nurses, chauffeurs, gardeners, etc. Exemption is based not on occupation, .but ur>on the. fact that it is a private home. If not a private home (including homes with a few boarders) such employees are not exempt from PRA. " (Card #1078, C. S. Long). DRAWING ACCOUNTS - See "Commission Workers.". DRY GOODS COTTON BATTING- INDUSTRY (SUBSTITUTION ) - Definition - "The term 'Dry Goods Cotton Batting Industry' as used herein is defined to mean the manufacture of garnetted and/or carded cotton fibre out up in the form of paper-banded and/or similar channels for consumpti on by the ultimate purchaser in the making of comforts, quilts, pads, pillows and other similar articles." (PRA Policy Board, August 19, 1933). EARNINGS -- "The phrase 'hourly rate', Paragraph 6, PRA is clear when ap- plied to a class of work paid on a flat hour or day rate. It must be interpreted however, to be applied to a class of work which on July 15, 1929 was paid on a piece-rate basis. Every piece-rate is figured and set on a 'base-rate'. The base-rate is selected as representing the fair earning per hour of the normal worker. The piece-ra.te is t he rate per piece which multiplied by the number of pieces produced by the average worker will produce not less than the 'base- rate'. Many piece workers earn far above the base-rate. Sub-normal workers may earn less than the base rate. But if the ' base- rate' . were selected as minimum it would be fair to both 'employer and worker, and it would guarantee all piece-workers a minimum wage above v'hat the subnormal, piece worker got in 1929 or gets now. further, the selection of the 'base- rate 1 in 1929 as a minimum under the PRA, alternative for the 40^ rate, Paragraph 6, PRA, will prevent an advantage from accruing to an employer who starting from a 'base-rate', set his piece rate low, or 'tight' as the industry phrases it. To take average earnings as a minimum in such a case would oenali%e the worker who worked under a piece-rate tha.t prevented good workers from exceeding the base-rate and made it impossible for normal or subnormal workers to reach the base rate." (D. E. Richberg). EDUCATIONAL ORGANIZATIONS AND INSTITUTIONS - See "Non-Profit Organizations", ELE r Jy I3_ '£ E -T A ND POTTR INDUSTRY SUBSTITUTION (PARAGRAPHS "3" AND "C " - "T.i ; .''u.i'. i 'emergency maintenance and repair employees' in paragraph (B) refers to employees engaged on emergencies within the normal probability of operation and of a character for which emergency crews are commonly mair. Gained . The phrase 'employees engaged on emergency work' in paragraph (C) refers to emergencies outside the normal probability of operation such as a severe lightning storm, a sleet storm, a wind storm, a turbine wreck, a boiler explosion, the failure of a transformer, or a break in a gas main, or a heating main, and other like emergencies." (Compliance Council, NRA, September 21, 1934). 9819 144 EMBALMERS - See "Professional Occupations". EMPLOYEES HOLDING MlRE THAN ONE JOB - "The NRA strongly disapproves of employees engaging workers whom they know to be already holding down a full time job elsewhere. The reason for this is quite obvious since the whole purpose of NIRA is to to increase and spread employment. Employers who sign the PRA are expected to cooperate in the drive to increase and spread employment to the . limit of .their ability.' Since it is the em'oloyer and not the employee who -signs the. .PRA, there is nothing to restrain an employee from accepting two jobs (if he is lucky enough to find them) except his own sense of fair play. toward his fellow worker who is still •unsuccessfully seeking emoloymeht". " (L. C. #52). EMPLOYMENTS NOT-, INTENDED, TO B E' COVERED: BY PRA : ~ (-Basic ■ Interpretation #6, General Johnson,.. NRA Bulletin #4 and 'General . Interpretations as indi- cated), .-* (1.) Professional occupations - "doctors, lasers, la™ clerks within the meaninf of State. !,Laws, requiring a clerkship and law students given specific duties- to., perform such as preparation of briefs, research assignments, etc." (Card No. 1296) ; "registered pharmacists, internes, nurses, student ..nurses of all- , kinds, ministering to. human beings, technicians, graduate .veterinary nurses" (Card #1340); "embalmers, funeral directors, laboratory workers and apprentices in dental establishments having had professional training and working in a orof e'ssional capacity, radio engineers and engineers in other highly technical, -orofessions, artists (if their work is creative and not of a routine nature)" (Card #1341); "certified public .accountants, newspaper photographers, optometrists, doctors of optometry and of optometr.ic science" (Card #1342); "news- paper reporters, editorial writers, rewrite, men and other members of editorial staffs, hospital technicians, research technicians" (Basic Interpretation #19, General Johnson, NPA Bulletin #4), also spe main heading "Professional Occupations"; (2) Employees of Federal. State and Local Governments and other Public Institutions and Agencies - "State, county and municipal governments are not under compulsion to operate under the PRA, but if they want to display the Blue Eagle they must comply with PRA" (Card #1268; (3) Agricultural Workers - "All those em- ployed by farmers on the farm when they are engaged in growing and preparing for sale the products of the soil and/or live stock; all labor used in growing and preparing perishable agricultural commodities for market in original perishable fresh form (labor involved in "orocessing farm -oro- ducts or preparing them for market beyond the stage customarily per- formed within the area of production, is not to be deemed agricultural labor); landscape gardeners, nurserymen and greenhouse employees if their work is agricultural in fact, bat in a city establishment they come under the provisions of PRA unless substitutions state otherwise" (Card #1186); (4) Domestic Servants - "Cooks, waitresses, kitchen maids, chambermaids, butlers, laundresses,, nurses, chaufferers, gardeners, etc., in private homes or homes with a few boarders" (Card #1078); .(5) " Persons buying goods and sel li ng them independently or persons selling solely on commission (not including persons regularly employed to. sell on com- mission, with a base salary or guaranteed compensation)." Also see paragraph #4, PRA, for. certain employees "to which maximum hours fixed in paragraphs 2 and 3 shall not apply. 9819 -1 tB- Students and learners. - "The PRA does not aoo] v to bona fide students of vocational schools (including Beauty Shop and Barber Students). The term 'student' is limited to those who receive no remuneration either by wage, comuissions or gratuities. Students and learners may be employed on a v holly commission basis, in which case the hour and wa^e provisions of the PRA do not aioply. " (Card 41384). F^^YMENT AGENCIES OPERATING UNDER THE BLUE EAGLE - "Such agencies need not limit their activities to prospective Employers who are operating under the Blue Eagle." (Card #1248). ENGINEERS - See "Professional Occupations". ESTABLISHMENTS WITHOUT EMPLOYEES - "Owners operating their own establish- ments without any employees may obtain the insignia of NBA by signing the Agreement and a Certificate of Compliance." (Basic Interpretation ^14, General Jlohnson, NBA Bulletin M) . EXECUTIVES - See "Paragraph #4, Provisions", page 26 EXPRESS AGENCIES. RAILROAD - "There are certain cases such as charitable organizations where any susuicion of a 'consumer pressure' because of not signing is ridiculous. Then other cases such as municipally owned opera- tions, railroads, etc., where there are complications making it perhaps 'so difficult that the business cannot sign. However, the answer is to any 'except' question that the President expects everyone to sign. The difference between NBA and PRA must be kept constantly in mind. PEA is a voluntary agreement with the President. Railroad Express Agencies are capable of signing the PRA."' (PRA Policy Board or thru Mr. Richberg, August 25, 1933), FAM ILY STORES - "It is wrong to say that wife and children are excepted from Paragraphs 2 and 5,.. PRA. No such exception has been or will be made. If a wife or relation or anybody employed, is 'in with' the owner as a 'joint venturer' they are in effect co-owners and no employees, If a relation is actually employed, the employer must conform with the PRA as to them - the fact that they are related makes no difference. One serious problem, however, is found in the employment of minor children. There is a serious question as to whether the employer - employee relationship can supplant the parent - child relationship because of the fact that under the common law the father is entitled to the earnings of the minor children. However, a definite ruling to this effect might leave the door wide open to wholesale violations of Paragraph #1, PRA, and it is highly undesirable that any such ruling be issued. Where you are confronted with this specific question, it is proper to merely say that if a person is an employee in fact, they must be treated in conformity with the employer's agreement with the President." (Lt. Johnston). FARMERS - "Farmers may obtain the Blue Eagle if they comply with the PRA. Basic Interpretation No. 6, NRA Bulletin No. 4, in which it is stated that agricultural labor is not intended to be oovered by the PRA means that it 9819 -146- was intended that employers of such labor should not he under any com-oul- sion to sign the PEA. Any farmer in trade or industry who comnlies vrith the terms of the PEA as to his agricultural labor will, of course, be entitled to the Blue Eagle." (Basic Explanation #2, General Johnson, NBA Bulletin, #4). "Farmers engaged in processing wholesaling or retailing of ^oods, are entitled to the Blue Eagle under Interpretation 4l4, even though they have no emplovees other than purely agricultural employees; but if they cL have employees who assist them in processing, "wholesaling on. retailing,* then they must comply with the wage and hour orovisions of the PRA as to such employees in order to earn the Blue Eagle." (PEA Policy Board or thru Mr. Richberg, August 25, 1933). "If 'farmers have employees vhich perform duties of route salesmen and wish to obtain the Blue Eagle, they must pay them, and all their other employees engaged in commerical com- petition with the Fluid Milk Industry, the minimum wages orovided for in the Fluid Milk Industry Substitution, and they must conform to all the otherprovisions of the PEA and the substitutions approved for the Fluid Milk Industry." (Lt.. Johnston) . "Farmers operating small dairies and employing a few helpers must place their milk plant employees and retail sales employees (including •milk route salesmen) under the PEA and substitutions thereto, approved for the Fluid Milk Industry, if they desire the Blue Eagle. Their agri- cultural employees (including milkers) .are not covered by the PEA." (Card #1253). . FEDERAL. CONTRACTS - See "Contracts (Federal)". FEED STORES HANDLING GROCERIE S - "If the store is primarily a feed store, it comes under the Retail Feed Distributing Trade substitution to the PEA. If it -is primarily a grocery store, it comes under the Food & Grocery Distributing Industry substitution to the PEA, in the .rare case where it "would be impossible to determine what the predominating character of the 'store is, there will be no harm done because of -the similarity of the tvn substitutions." . (Lt. Johnston). "The selling of food, either for human . or. animal consumption is not governed by the Retail Code. That is, such firms should continue opera- tion under the PRA and aporoved substitution -modifying this until a oer- iiianent code for that particular industry has been approved." (F. L. -9, November 20, 1933). FLU ID MILK INDUSTRY SUBSTITUTION (PARAGRAPH 7 ) - "A downward readjustment in compensation for employment in excess of minimum '"ages is not prohibit by the substitution for the Fluid Milk Indus tr;. r for paragraph 7, PEA pro- vided such downward readjustment is in fact equitable on the basis of the circumstances and conditions which obtain in the employer's mills market- ing a,rea, " (National Industrial Eecovery Board, March 23, 1935). "Ee- gular deliverymen and 'spot' deliverymen in. the Fluid Milk Industry be limited to the forty-eight- hour week called for in Paragraph 3 of the mod: fied PRA for the industry." (Advisory Council, Compliance Division, June 6, 1934). 9819 -147- FOOD PROCESSING ESTABLISHMENT S - "Such establishments as coffee roasti ;, food canning, etc., come under the PRA pending adoption of substitute provisions or oermanent code for the industry. However, until adoption of a oermanent code, employees in the jobbing, wholesale or retail sales departments come under the substitution for the Food & Grocery Distributing Industry." (Card #1259-A) FOOD PRODUCTS - "The Grocery Codes do not apply to strictly manufacturing operations. T/here manufacturing and selling are engaged in by the same firm, the selling end only shall come under the Grocery Code." (Card -71259), FORD AGENT S - "Ford agents who have signed the PRA and are complying with its provisions or accepted substitutions made thereunder i-'hich apply to their employees may display NRA insignia.. According to NIRA a permanent code for 'a- given industry when approved by the President covers all members of that industry, not merely signers of the code. It is assumed that an individual member of an industry is complying with provisions of his code until proven otherwise." (L. C. #52, September 21, 1933). FUNERAL DIRECTORS - See "professional Occupations". "GARAGE Ex.jPLOYEES shall be classified according to the nature of the work they, are performing. If this ^ork is of r service nature, Paragraph 2 applies. If the men are machinists >~>r mechanics "hose time is devoted mainly to such work, Paragraph 3 applies. Employees whose duties a,re mainly attending to gasoline pump sales, see Petroleum Code." GARDENERS - "If employed by a private home, are considered domestics, and therefore exempt from PRA, minimum wages and maximum hours." (l. C. #57, September 27, 1933). GAS STATION ATTENDANTS - Paragraph 2, PRA employees. (E.G. Wilson, August. 19, 1933). GEN ERAL STORES - "Employees engaged in general stores should not sell other than food stuffs during hours in excess of 40 in any given week. It is not reasonable to provide unfair competition for local hardware, dry goods, etc., stores by allowing general store employees to sell other than food stuffs during a full 48 hour period. This does not ap;oly in to'-ms of less than 2,500 ,r hen such town is not part of a larger trade area. This ruling should not be taken to limit the hours of operation of any store in any way." (PRA Policy Board or thru Mr. Richberg, August 25, 1933). "In cases where general stores have different departments as - flour, corn meal, salt, dairy and poultry feed, grain and hay - the proprietor should decide what kind of store is being operated and not try to benefit himself by adopting the maximum hour provisions of a certain substitution merely because of the fact that he happens to carry some things which would fall under that substitution, thereby permitting him to work his employees longer hours." (PRA Policy Board). Also see "Department Store Employees" ♦ 9819 -148- GIFTS. Ill COITIiECTIOh " f ITH S._LES ~ See "Premiums". GOLF COURSE WORKERS - "Workers on golf courses are clearly covered, by paragraph 2, PRA, and can in no sense "be considered agricultural workers." "(L. C. #57, September 27, 1933). GO VERN! IE1TTS. FEDERAL. STATS. COUNTY OH MUNICIPAL SIIPLOYSES - " State , County and Municipal Governments are not under compulsion to opera.te under provisions of PPuA; but, if they desire to display the 31ue Eagle they must eomply with PRA." (Card #1268) . "Decision regarding the placing of Federal Government orders for material and services with Blue Eagle contractors exclusively or waiving the provisions of PRA for such contracts only is uo to each Federal Purchasing officer." (Mr. Richberg). GRAIN ELEVATOR (COUNTRY) INDUSTRY (SUBSTITUTION ) - Definition - "The term 'Country Grain Elevator' is hereby defined to be an 'elevator' engaged in the business or receiving grain in less than carload lots and hnving permanent elevator and/ or warehouse facilities for receiving and shipping grain. 1 ' (PRA Policy Board, ' August 24, 1933). GRATUITOUS EMPLOYMENT ~ "An employer operating under the PRA. is not permitted to accept the services of anyone gratis. To do so -70uld eliminate a paid emplo3^ee." (informal interpretation by L. G. Nilsou, August 19, 1933). GREENHOUSE EMPLOYEES - "Greenhouse employees are Glassed as agricultural workers if their work is agricultural in fact; but in a city establish- ment they come under provision of the PRA unless substitutions state otherwise.." (Card #1186). "Employees of greenhouses, ^hich produce food products, are to be considered agricultural workers regardless of the fact the greenhouse be within or without the city limits." (interpretation Section). "By unanimous vote the Board approved the following classification of greenhouse workers, submitted by Messrs. Galvin and Behney: "All greenhouse workers e..x:)lo^ed by florits and nurseries shall be classed as indus ;rial workers, subject to : the provisions of PRA and approved substitutions thereof". ' (National Compliance Board, NBA, December 19, 1933). HAjED I CAPPED EMPLOYEES ~ See "Sheltered Workers". HAWAII Ah ISLANDS - "An3 r - employer in the Hawaiian Islands who wishes to sign the PRA will be entitled to the Blue Eagle. The Administration is under the impression that there are unusual factors in the Hawaiian situ- ation which might make it inadvisable to build up the same pressure on trade or industry to come in under the HRA as is necessary in the Sta.tes. Pending a full investigation of the economic and political situation in Hawaii the Administration does not want to make a definite statement of policy with rega.ro to extension of the Recovery movement to include the Hawaiian Islands." (Card #1281 ) • ' - HOLIDAYS (LEGAL) - "Legal holidays are those holidays recognized ~bzr Federal and/ or State and/or Municipal Governments. When each holidays fall in the middle of the week it is the intent of the PRA that employees who are em- ployed by the week or month shall not be compelled to make up time so lost f 9819 -149- (but shall receive their full week l y., o r mo.nth ly na y), when it is customary to shut down the plant, office or -place of business during such holiday." (Card ^1275)* "Legal holidays were taken into consideration in maximum hour and minimum wage clauses of the PRA. It is not in accordance with the intent nor spirit of the PRA. to require employees to make up time lost on account of a legal holiday. However there is nothing in the PRA. prohibit- ing such employees as am paid on an hourly or a piece work basis to work extra hours in order to make up for pay lost on holidays, except that they shall not work longer than th<^ maximum hours permitted in the TRA and ap- proved substitutions." (C. S. Long). HOME WORK - See "Sweat Shops". HORSE DEALERS - "Employees covered by paragraphs 2 and 5, PRA unless they are in fact agricultural." (Card #1277) ... HOSPITALS - »We have a ruling from Mr. Richberg, August 18, 1933, being interpreted,' means tbrt all hospitals which are distinctly not operated for profit cannot be forced to apply for the Blue ^agle. However we are to ask them to do so on account of the clerical and other service em- ployees that they have on theri payrolls, especially in view of the fact that they would be adding to the material support of the President's Re- employment Program, and would get in return public support accorded all institutions that are able to apply for the Blue Eagle. There are other similar institutions, such as churches and charitable organisations which are evidently non-profit organizations, which would come under thise same policy." (L. G. Wilson, August 21, 1933). Also see "Signing the PRA and Certificate of Compliance". HOSPITAL TECHNICIANS - See "Professional Occupations". HOT DOC STAMPS - "Considered as restaurants under PRA". (Card #1073, C. S. Long). HOURLY WORKERS - "Hourly workers are paid for each hour worked." (L. C. #46, September 16, 1933). ICE CREAM MANUFACTURING- INDUSTRY - "Regular deliverymen and 'spot' delivery- men in the Ice Cream Manufacturing Industry should be limited to 48 hours per week, as called for in paragraph 3 of the substitution to the PRA ap- proved for the Industry." (Advisory Council, Compliance Division, June 6, 1934). IMMEDIATE TRADE AR EA - "Immediate trade area is the area in which there is direct retail competition. In case of question, the decision shall be made by the local chamber of commerce or similar organization subject to review by the State Recovery Board." (Basic Interpretation *13, General Johnson, 'NRA Bulletin #4). IMPORTS - "General Hugh S. Johnson, Administra.tor, NRA, has announced the establishment of an imports division, to handle all requests by industries, labor or trade organizations, for tariff adjustment, restrictions or pay- ments of fees. Under NRA, any labor or trade organization which has com- plied with the terms of the Act may complain to the President that articles are being imported to the detriment of the competitive position of similar 9819 -150- domestic articles. The President is empowered to have an immediate investigation, require the payment of fees or may restrict the importa- tion of such articles. As a general matter, the industry making the com- plaint will be expected to make a prima facie case before their request ill be forwarded to the President and requests for relief may be made ly after a code has been approved." (Card -1495). on INCOMPETENT EMPLOYEES - "There is nothing in the Agreement or in any of the substitutions thereto which -says an employer may not replace incom- petent employees with competent ones; provided, the new employees earn th minimum wage and do not work longer than the maximum hours soecified. However, discharging employees earning substantially over the minimum was in order to replace them with new employees at a lower wage is a violatio of Paragraph 8, PPA. " (Card #1282). INDEPENDENT TELEPHONE COMPANIES SUBSTITUTIONS - "Independent Telephone Company employees who are : subject to call 12 hours oer night, for the numberof nights that constituted a full week's work at the "Particular exchange on July 1, 1933, shall be compensated for a full week's work whether or not they have performed actual work totalling the maximum hours of actual work "Dermitted in paragraph (a) off the terms set forth in the letter da.ted August 31, 1933 ftrom the U. S. Independent Telephone Association to" the Policy Board. Employees subject to call 12 hours oer night for less than the number of nights that constituted a full week at the particular exchange on July 1, 1933, shall be 09 id on a pro rata basi (Compliance Council, NBA, September 27, 1934). "Since Clause 'VII does not appear in the PEA substitution for Independent Telephone Companies an since it was the intent of the parties concerned that it be omitted, the only wage clauses governing Independent Telephone Companies are clauses VI and VIII of the substitution approved for Telephone Companies. " (S. S. Surrey, Legal Division, February 9, 1935). INDUSTBIAL WORKERS - See Paragraphs #3 and #6, PEA, pages 24 and 28. INSIDE SALESMEN WORKING SOLELY ON COMMISSION - "Such employees are exempt from maximum hour and minimum wage requirements of the PEA, if employed solely on commission prior to June 16, 1933, see Interpretation #6. How- ever, transferring a clerk from salary or part salary to commission basis after that date, in order to avoid wage or hour provisions of PEA is a subterfuge and violates paragraph 8, PEA," (Lt. Johnston). Also see "Commission Workers". INSIGNIA. BEGULA TIONS G-OVEBNING- USE OP 1. Stamping Insignia on packaged products - "Whether Insignia is placed upon individual package or outside cartons is ootional. The Insignia. may be shown upon one or the other. In addition, every packer having the right to use the Insignia should file with each wholesaler and retailer a suitable certificate that he is a member of NBA, which certi- ficate will be open to inspection by housewives and others who have signed the pledge in support of the President's Reemployment "Program, and furnish the retailer with shelf insignia to be displayed with their products. 9819 -151- The idea behind this ruling is,' that dealers and manufacturers should protect themselves by, in some way, showing that their products are made under the Blue Eagle." (Card #1284). See also Administrative Order #X-138. 2. Reproduction - "The NBA insignia cr 31ue Eagls has "been 'off icialfly adopted by the United States Govern neat, to signify membership in the FRA. 7e are unable ..to author. Ls« -6sy . sutfcesai ion of the wording or its position, form, proportion or color .combination of the official FRA In- signia maybe reproduced* in any solid color employed' in the orinting.of the container used t Castings, carvings- or impressions; may be in the natural color of material used. For rubber stamps any solid color may be used. l,T "e are unable to authorize temporary or other use or reproduction of the official FRA insignia until bhe Pl'A end Certificate of Compliance or Code is signed with accepted NBA substitutions, if any, or without accepted FRA substitutions, if none. "Reproduction of the official Blue 'Eagle insignia for FRA Members is authorised by this office to deto'ce NllA membership only, or an as- sociation v r ith membership. The insignia bearing the word "member" may be placed uoon such member's equipment, goods, communications and pre- mises." (Card -\L2S5); "The insignia must be used so that it will clearly indicate to the general public that the person or firm using the insignia is a member of the FRA.. Burther. FRA meinbeis may distribute free to employees and con- sumers, articles bearing the insignia and carrying the words 'consumer' or 'employee' . "The insignia is the property of the United States. Government and cannot be appropriated in whole or in part ; for private 'purposes. .Re- production of the insignia is not Authorized for purposes of copyright or registration as a trademark or '"trade name, for decoration, or for private barter and sale, ''Authorization is not granted to indiscriminately buy or sell, ai retail, novelties, buttons, emblems, pencils, 'etc., bear- ing the 'consumer 1 insignia-, Such sales -.re made at the seller's own risk. Owners operating their own establishments without any employees may obtain the insignia of FRA by signing the Agreement and a Certificate of Compliance." (Card #1286). "In connection with the above, Section 5 of the Trade-I'ark Laws of the United States provided 'That no mark by which the goods of the owner of the mark may be distinguished from other goods of the same class .- shall be refused -registration as a trade-mark on account of the nature of such work unless such mark: (a) consists of or corrorises unmoral or scandalous matter, (b) consists of or comprises the flag or coat of arms or other insignia of the United States or any simulation" thereof ,' or any state or municipality or of - - -." (Card #1287). Also see Executive Order Fo. 6337 and Release Fo. 1627. 3 . . Attaching B1up : Stars to Blue Eagle Insignia for each additional Employee added - "This practice is not officially authorized. Stars must not be placed over the Eagle or over its blank background, but must be placed above, below, or to each side of the insignia." (Card =^1287) 9819 -152- . ' 4. White .strip, across Insignia --here an em-plover is operating under an exception - See "Stays" and Release ■-No. 495. INTERNES (HOSPITAL ) - See "Professional Occupations". .INVENTORIES - See "Paragraph *2, PRA, Provisions", page 23. IRRIGATION PROJECT EMPLOYEES •."HO PUMP WATE TO RICE FIELDS. Enrolo-ver Receiving Pro-portion of Rice Crop as Remuneration - "Office employees under Paragraph 2 and 5, PRA; oilers, firemen, and ongineers under Para- graphs 2 or 3, as case may be." (Lt. Johnston). JE..ISH HIGH HOLIDAYS - "are not considered legal holidays unless so re- cognized "by state or Federal Government. Employees of a trade for which approved hours do not limit daily hours may make up loss of time for Jewish holidays provided the weekly hour limitation is not exceeded." (L. C. ^45, September 15, 1933). LABOR CONTRACTS - See "Contracts (labor union) ". LANDSCAPE GARDNERS - "classed as agricultural workers if their work is agricultural in fact; but in a city establishment they come under the provisions of the PRA unless substitutions state otherwise." (Card #1186). LAUNDRY DELIVERYMEN - "Laundry deliverymen should be classified as 'Pro- ductive Labor' (Substitution to the PRA approved for the Laundry Industry) regardless of whether they are paid by commission, or guarantee plus com- mission, or straight salary." (National Compliance Board, May 22, 1934), LAUNDRY INDUSTRY SUBSTITUTION DEFINITIONS - "(l) Laundry Establishment as used, herein is defined to include any place where any article of clothing, napery, blankets, bed-clothing, or fabrics of any kind whatso- ever are washed and/ or ironed for hire provided th-f your remedy under this paragraph. n If you feel that even .;i th the. .substituted previsions, the President's Agreement will cause you, individually, a great and unavoid- able hardship, you should follow bhi steps outlined in bhis paragraph. Y/hen you sign the Certificate of Compliance you should add the following! •To the extent of FRA. consort as announced, we have complied with the President's Agreement by complying with the' substituted provisions of the code submitted by '.he Trade/ Industry '; and 'Except for those interi.ii provisions regarding wages and hours which have been approved by the 7rnd.e Association* ' "A person who believes that some particular provision in the Agree- ment, because of peculiar circumstances, will create great and unavoid- able hardship sould prepare r uetition to KvtA asking for a stay 3f this provision as to him. He should ther submit thi; petition to the t- T ade associati m Df his industry, or, if there is nore, to tne local chamber of commerce or similar representative organization des igna ted -by FRA for its approval. The written approval of the trade association or such other organization yill oe accepted by ITRA as the basis for a temporary : r tay, without further investigation, rending decision by NRA. The petition must contain a premise to abide by FHA's decision, sj that if NRA decides against the petitioner he must give effect to the provision which was stayed from the cat" of 'the decision of NRA. "The petition and approval of the trade association or other organization, as vvez^/ L!5ed , bove, shou.ld be forwarded to NRA in Washington; and the employer s signed copy ^f ihe Fresiient's Reemployment Agreement should be' sent to the District Office of the Department of Jommeroe. After complying with these requirements the employer will be entitled to receive and display tnf work assinged to each co-worker are classed as owners and are not covered by the minimum wage provisions of the PRA." (E s A. Cross, -Legal Division). PART-TI ME EMPLO YEES - "The minimum wage- for a part-time worker in an employment described in ^paragraph £, PEA, is a wage such that if the emolovee worked at that -wage f ;r a full r eek of 40 huurs he would receive the minimum weekly wage prescribed for him by the Agreement, The minimum wage for a part-time worker in an employment described in paragraph 3, PRA. is the minimum wage per hour prescribed oy paragraph 6, PRA-" (Basic Interpretation #10, General Johnson, NRA Bulletin #4). "Two regular employees; plus any fraction of an employee because of a part-time arrange- ment is 'more than two persons' for the purp- se of Paragraph 4, PRA which 9819 -164- 'says 'maximum hours - - shall not apply to employees in establishments employing not more then two persons in towns of less than 2,500 population - - - ' " (Lt. Johnston) . See also Executive Order #6710. PENSIONED EMPLOYEES - See "Sheltered Workers"* PHILANTHROPIC ORGANIZATIONS - See "Non- profit Organizations". PHOTO-FINISHING INDUSTRY (SUBSTITUTION) - Definition - "The term •photo-finishing (sometimes known as amateur finisning or as developing and printing) as used herein is defined to mean the service of develop- ing exposed photographic} rcli films, plates, cut films, or film packs, and the making of prints, enlargements, and photographic specialties therefrom.'" (PRA Policy Board, August 30, 1933), EffffTOGRAFHIC ARTISTS AND PHOTOGRAPHERS - See "Professional Occupations". PHOTOGRAPHIC MANUFACTURING INDUSTRY SUBSTITUTION - "The term 'employees' as used herein shall include all persons Forking for wages and employed in the conduct of such operations, excepting those persons who serve in executive, administrative, supervisory, sales and/or technical capacities." (PRA Policy Board, August 4, 1933). PHYSICALLY HANDICAPPED EMPLOYEES - See "Sheltered Workers". FHYSICIAN5 - "All employees of doctors are subject to the PRA. Employees who are in fact professionals, such as internes, nurses and technicians, are not subject to the maximum hour provisions of the PRA, but are subject to minimum wages. Non-professional employees, of curse, are subject to both maximum hours and minimum wage provisions. Student nurses are not subject to maximum hours, but if employed in a doctor's office, they "are subject to minimum wages. If the doctor enrol oys not over two persons and his office is located in a town of less than 2,500 population which is not a. oart of a larger trade area, his non-professional employees are not subject to maximum hour provisions. Physicians in these smaller communities should raise the wages or salaries of all employees, whether professional or non-prof essional, by at least 20;o, if they are below the minimum specified in the PRA. If such increase of 20^ brings the wage or salary over the minimum, then the physician need only pay the minimum. All of the above is contingent upon the desire of such physicians to comply with the PRA and display the Blue Eagle." (T. S. Hammond, September 14, 1933). PI ECE WORK - See "Earnings". POPULATION S - "In cases where the 1930 Federal Census shows that a town at that time had a population of over 2,500, and where the population has subsequently shrunk to below 2,500, it has been ruled that upon certifi- cation of the Mayur, Town Clerk, or other competent authority, that the present population varies from the 1930 Federal Census, the certification, rather than the census, governs for purposes of classil ication under the PRA." (Card #1333). "In cases where several to^ ; ns of substantiallv the same population are in the immediate vicinity of each' .other and '-here one of these to v 'ns 9819 ' -165- has a .Chamber of Commerce and a Compliance Board, the Chamber of Commerce and FRA Compliance SOard should use every efiort to induce neighboring towns to all >w these organizations -n the town or towns to include other towjns mentioned within its trade area, by discussions with Nit|L representatives or Goa?plip.nce 3oards in. the i tncr 1 iwns (if any); otherwise by communicating with and ascertaining the wishes of a majority jf voters and prominent citizens of the adjoining towns. Every attempt should bo made to reach a sound and unbiased decision locally, concerning trade area qUeb ; :ions„ Should it be impossible to reach such a decision because of opposition on -the part of adjoining to*ms, the question, of course, must be referred to the State Recovery Board for arbitrary decision, '■ (Card fl4C4) e " PORTERS - ''Covered by Paragraphs 2 and 5, PRA unless specifically mentioned in a substitution. " (Card #1334), POST OFFICE EMP LOYE ES ( THIRD CLASS FOST OFFICES) - "First Assistant Postmaster. General Joseph C. O'M&honey states under date of September 6 that 'while clerical employees in third class post offices are appointed by the postmaster and. are under his direct supervision, their salaries are paid from allowances authorized by too Department out of 3-overnment funds. They are, therefore; considered Federal employees and are subject to such compensation deductions Under the Act of March 20, 1933, as are applicable to all other Federal ennlo ,r ees '<> In view uf the foregoing,, it is not necessary for third class Postmasters to observe' maximum hour ,and mini mum wace provisions with respect to their employees." (Card #1503). POTATO INSPECTORS - "If potato inspectors work in the field or on. the - farm, they are under the ' Agricultural Adjustment Administration, and are not concerned with FRA. If they are potato inspectors in the city or in warehouses, they come' under Paragraphs 2- and 5, FRA. They are not con- sidered professional workers. ,; (C. S. Long). ■ ". , i PRE i vlIlMS, PRIZ E S^ ETC. - "Premiums., •pri'zss-j etc. , are sales promotion aids ana mve nothing to do with wages and hours under the FRA, except as forbidden in substituted provisijns for a particular business.". (C. S. Long). PRICE" FIXING - "Under the FRA the NRA does not favor any price-fixing agreements," (Card #1336). PRISON LABOR - "The FRa does not apply directly to prison labor products whicn compete with private industries. The PRA was not intended, to affect the policy of the several states on prison labor in any way. .The FRA has no established policy on this po:nt c However, since all state institutions will find it impossible to sign the PRA. prison made goods in the public market ^'ill not bear the Blue Eagle and thus indirectly there r is a very definite effect," (Lt, Johnston). PR IVATE DEFECTIVE S - "It is not advisable to extend the definition 'Professional.' as used in Paragraph 4, FRA beyond" the recognized, established professions. A private detective, working for a private agency, is an employee included in Paragraphs #2 and #5, PEA, and should not be worked mjre than the maximum hours specified, nor snould 9819 >( r 166- he l»e paid less than the minimum «rage provided in Paragraph #5, PEA. However, if such a private detective is receiving more than $35. per week, he is probably in such a position of sole responsibility that be would fall in the 'executive' class and, therefore, exempt from maximum hour -provisions. If he does not receive as much as $35. per week, he is not within this class. If it is necessary fur such an employee to work continuously on the same case, so that it will be impossible to restrict the number of hours '-'hich he should ^urk, he shou 1 d receive time and one-third." (Card #1483). PRODUCTIVE LABOE (LAUNDEY) - -See "Laundry Industry Substitution Def initions"» r PROFESSIONAL OCCUPATIONS - "It is not the intent of the PEA to compel professiunal people, as employers, to come under the Agreement; but it is the desire of the Administration that such employers shall cooperate with the Program by complying with the pr ^visions of the FEA. In this con- nection it should be noted that employees who are in fact professional people- such as internes, nurses and technicians - are not subject to the maximum hour provisions, PRA, but they are subject to minimum wage requirements. Non-Professional employees, of course, are subject to both maximum hour and minimum wage provisions. " (Lt. Johnston and C. S. Long). Also see "Emnloyments nut Intended to be Covered by the PEA" and "Signing the PrA. and Certificate of Compliance." Artists (including Commercial Artists) - "Ii their work is creative, they may be called professionals; but if their work is of a routine nature, such as filling in, coloring, lettering, etc., tney are subject to maximum hours provisions of the PEA." (Lt. Johnston). Certified Public Accountants - "are considered as professionals under Paragraph #6, PRA. The Certified Public Accountants themselves are considered professionals, but their junior accountants pnd- clerical helpers are under Paragraph #2, PRA, oending adoption of a permanent code or substitute provisions for the Public Accounting business." (C- S. Long) Dental Establishments - "Laborat rv workers and apprentices in dental establishments are not considered professionals under basic Interpretation #6 and #19,. NEA "bulletin. #4, unless in fact thev have had professional trainings and are working in a professional capacity." (Card #1341). Funera l Directors and Embalmers - "(l) Embalmers are 'professional persons employed in professions'. (2) Funeral Directors are either the same as 'Embalmers' or are 'employees in a managerial or executive capacity, who now receive more than $3i>. per m eek'. In any event, we f eel . that these two classes should be exempt from maximum h^ur provisions of PEA." (FEA Policy Board), Hospital Technicians, Internes, nesearch Technicians - "are in- cluded among professional oersons within the meaning of Paragraph #4,- PRA." (Basic Interpretation #19, NEA Bulletin #4). : 9819 -1G7- Law clerks and Law Students - "A law clerk, within the meaning jf State Laws requiring a clerkship, is in p professional rather thaji i clerical status and is exempt from the maximum hour provisions but iot the minimum wage provisions. However, lawyers who evade the intent if the Agreement by using law clerks, who have passed the Bar examination, is filing clerks, stenographers, etc., (instead of in serving processes, assisting in the preparing of briefs, etc.) and w ;rking them over 40 hours i week, are violating Faragraph #8, PRA. This subject has been brought ip many times and it is highly und esirable to iss ue a definite r uling on the point because of some very difficult legal problem which would probably •equire a ruling adverse to the intent of the Agreement." (Lt. Johnston), "Students reading law in a law office do not have to be naid the ainimum wage if they are not employees. If they are given specific iuties to perform such as preparation of briefs., research assignments, ?tc. , they are then professional persons employed in their profession Uttc although exempt- from maximum hour provisions', they are not exempt 'rom minimum wage provisions. If they are given clerical duties so that j.n fact they are not 'employed in their. profession r they are not even exempt from maximum hour provisions." (Lt. Johnston). Newspaper Photograrhers - "For the purposes of the PRA, they are i-eporters, whether they obtain pictures or news," (C. S. Long), Newspaper Re-Dorters. ..Editori al V;r iters "rewrite men. and other members M editorial staffs are considered as 'Professional Persons'," (Basic interpretation #19, NRA Bulletin No, 4). Nurses - "All kinds ministering to human beings are not limited as o maximum hours of lab -r under Paragraph #2, PRA, but they are subject ■o minimum wage provisions, .Paragraph #5, PRA. The same ruling applied ■o graduate veterinary nurses. Student surses in hospitals are not subject o minimum wage provisions, PRA» Student or undergraduate nurses in a Loctor's office are subject to minimum wage provisions, PRA." (C # S. Long). C;: f jaetrists (including doctors of optometry an d_ do ctors of 'pto.-ietric science^ - "are regarded as professionals; and when employed Imd working in their professional capacity, they are not limited to maxi- mum hours. Nonprofessional assistants to the above should be classified is skilled craftsmen, subject to maximum hour and minimum wage provisions." Lt. Johnston). R adio Engineers and Engineers in other Higher Tech n ical Professions - "Whether or not such engineers shall be considered professionals depends entirely ur>on the conditions. Such engineers are under professional classi- fication until other proven." (Card #1341), Teachers "who actually teach in nrivate schools ere considered pro- 'essionals and are exempt as to maximum hours," (Card #1362), ,:U3LIC .UTILITIES, RAILROADS OR OTHER FOnJ/iS OF TRANSFORATION SERVICE - 'Flease do not give any opinion, verbally or in writing, to the effect pat Public Utilities,. Railroads or jther Forms of ■ Transportation service Lo not come within the NIRA. The fact is that they all come within the IIRA, and it is only a question of pjlicy as to whether or how the pro- visions of the NIRA shall be applied. Jurisdictional questions are very 1)819 -168- dangerous and, therefore, unless you know the official ruling, please do net undertake to state it." (Legal Division memorandum signed "by Donald R, Richberg about August 10, 1933), RADIO ENGINEERS - See . "Professional Occupations".,- : REA L ESTATE OPERATORS OR AGENTS - "who manage properties that are not entitled to the Blue Eagle because of the refusal of the owners to com- ply with NRA, may display the Blue Eagle in their o^ offices if they put PRA into effect so far as their own employees, over whom they have full and direct control, are concerned. The Blue Eagle must not he displayed, however, on the ■premises which- they manage, if owners of such premises refuse compliance," (Lt, Johnston), RECONSTRUCTION FINANCE CORPORATION - "Labor on projects financed by the Reconstruction. Finance Corporation is covered by the PRA," (Lt, Johnston) RELIGIOUS ORGANIZATIONS - See "Non-profit Organizations", RENT (DEDUCTIONS FOR ) - "No deductions shall be made from the pay envelope or check, for room rent, meals or anything else-. The" single exception to this occurs in the substituted provisions for restaurants, Hiich pro- vides that deductions may be made for meals when such was the custom prior to June 16, 1933," (C. S.rLong), Also see "Deductions". REPAIRMEN - "Automobile repairmen on commission are piece workers, and subject to PRA minimum wages and maximum hours," (Interpretation Section, October 3, 1933), REPLACEMENT OF EMPLOYEES - See « Incompetent Employees". REVOCATION OF SIGNATURES OF PRA - See "Withdrawing. from PRA". RIGHTS. CONSTITUTIONAL 'AND/OR IMMUNITIES - See "Constitutional Rights". SALES PROMOTION AIDS - See "Premiums". SANDWICH STANDS - See "Barbecue and Hot Dog Stands." SCHOOLS AND COLLEGES (BUSINESS AND FRIVATE) OPERATED FOR FBOFIT - "Pending the adoption of a specific code for private schools, such schools are expected to sign the PRA and put into effect its hours and wages -pro- visions respecting its employees. (1) Teachers VT ho actually teach are considered professionals under interpretation 6 and are exempt as to maximum hours. (2) Office and miscellaneous workers are covered by Fa' agraphs 2 and 5, PRA. (3) Employees in, school kitchens and dining rooms ney be worked under the restaurant substitution." (Interpretation Section, September 23, 1933). 9819 -169- SECTION 7-a. NI.RA. LABOR PROVISIONS - "The labor provisions of Section 7-a of the Industrial Recovery Act automatically apply to an employer upon signing the ?RA in the same manner as it comes into lull effect '"hen the President si^ns a permrnent code." (General Hammond), SE RVICE EMFLOYEE^vs^ivIA INTEN ANCE EMPLOYES - "For the purposes of the PRA, service employees are those employees who perform the same daily or periodiwal functions in connection with the operation of a plant or business (such as elevator operators, scrubbers, engineers and firemen, window washers, 'window trimners and store clerks); while maintenance em- ployees are defined as those employees who are- available for repairing breakdowns in machinery and other work ' hich becomes necessary at irregular intervals. In this connection, the term' service employees' is not used in the sense of employees rendering service to the public." (C. S. Long). SKELTERE D WORKERS - "Persons who are limited in their earning power :h rough physical or mental defects, age, or >other infirmities (physical or mental defectives, including superannuated employees who are really pensioners), may be employed on light duty below the minimum wage set by the PRA, and for longer hours than are therein authorized, if the employer obtains from the State Labor Commission a certificate authorizing the em- ployment of such defectives in such manner," (Basic Explanation #3, General Johnson, NRA Bulletin #4). "It has been ruled that in the case of employees who are superannuated or mentally or physically defective, an enrol oyer can pay part of the minimum wage with an insurance company making up the balance. Such an arrangement is equitable for the employer, the employee and the insurance company." (Lt. Johnston), "The above has been amended to read: 'State labor commission will be guided by the instructions of the United States Deparcment of Labor in issuing such certificates. In any state where there is no state labor commission or analagous authority, application for such a. certificate will be made direct -to the United States Department of Labor in Washington, '" (Local FRA Compliance 3oard Memo (C3 7) dated October 9, 1933). SCRIPT - "It is the intent of the PPA that increased wages shall be real and payable in cash or checks readily convertible into cash. There may be special cases such as those of municipalities, counties or states and even private employers where temporary shortage of cash may make this impossible for the time being. Any script issued in such emergency should be convertible into cash at a definite day in the near future and should not be issued as a means of evading provisions .of the PRA, n (interpre- tations Section), SHOE R EBUILDING A ND REPAIRING - "Any service activity which is entirely independent of retail dealing, such as shoe rebuilding, is at present governed by the PRA and not by the retail code. Shoe rebuilding or alteration which is incidental to the sale of shoes, is governed by the retail c^de. But shoe rebuilding or repairing operations, where the price to the consumer is preponderantly for labor costs, as distinguished from costs of merchandise not substantially altered for the purposes of sale, are not retail operations. Accordingly most independent shoe repair shops are not under the retail code. The primary test should be whether the activity is one in which the selling aspect, as distinguished from the servicing aspect, pred )minates„ " (J#L. #21, December 12, 1933 - Statement by NRA) , -170- SHOE SHI HE STAND .-EMPLOYEES - "Shoe shine employees come undei Paragraphs-, #£ and #5, FRA| If these employees worked on a purely commission basis, prior to June 16, 1933, they may continue to do so, and in such case they are not subject to either minimum wages or maximum hours, New employees mav be added on a straight commission basis, provided employment on this basis has been the .custom in the past. However, it is a violation of Paragraph # PEA to change to a commission basis employe-es who have been receiving v -ages or base pay plus • commission,. It is likewise a violation of Paragraph #8, PEA for proprietors of shoe shine stands to attempt to evade the purposes of the FEA by leasing shoe shine equipment to former employees on a basis which would allow these employees a. percentage of the receipts, thee making the employees proprietors in their own right," (Card #1568), Also see "Commission Workers, and "Tips and Gratuities", SHOW CAEJJ WEI TEES ~ See "Window Trimmers and Show Card Writers". SIGNING- THE PEA AND CERTIFICATE OP COMPLIANCE - "An employer engaged in several different businesses or. employing labor of several different classes should, sign but one agreement," (Basic Interpretation #17, General Johnson, NEA Bulletin #4), "'where' manufacturing establishments, chain stores, chain restaurants, etc., have many establishments in dif- ferent locations and different cities, the managers of these branches are expected to sign the PEA and Certificate of Compliance applying to the employees under their control," (C. S", Long), "Hospitals, not engaged in carrying on a trade or industry, do not come within the purview of the NIEA, so as to come under the ordinary requirements of a code of fair competition^ There is nothing to prevent any employer of labor outside of trades and industries, any professional man or organization or any -non-profit organization, from signing the FEA and conforming to its provisions.. .This dues not mean, however, that they are under any compulsion to do. so other than that resulting from a desire to cooperate i: "here appropriate, and so far as possible, with a general program of reemployment at shorter hour's and higher ' r ages To the extent that labor is employed in occupations comparable with those engaged in trade or industry, it is ,of course desirable that similar conditions should prevail," (Mr. Eichberg, August lb, 1933). SMALL COMMUNITIES - "Employers in small communities having neither a trade association or Chamber of Commerce should apply to the Trade Association Section, Blue Eagle Division, 'NEA for designation of proper organization to consider petitions for, exceptions to the PEA under paragraph 14. " (Lt. Johnston). SNUFF - See "Cigarette, Chewing, and. Smoking Tobacco and Snuff Industry." SOCIAL SEEVICE INSTITUTIONS - See "Non-Profit Organizations", SOFT DRINK INDUSTRY' SUB ST I 'TUT I ON ' - "Exemption of drivers and route salesmen from limitation of maximum hour provisions extended beyond November 5, 1933." (National Compliance Board, November 1, 1935). SPLIT SHIFTS - "If splitting hours of employment has in fact increased employment and wages and comes within the intent of the FEA, it is per- missible, but if splitting hours is a means of evading employment and 9819 -171- the intent of the agreement it may be considered ps staggering hours and in violation «-»f Faragraph 8, PEA." (C. S. Long), Also see "Staggering Hours", STAGGERING HOURS "Any unusual or extraordinary arrangement of hours of lab^r of emplovees (whether with respect to corresponding hours of other employees in the establishment, or with respect to ordinary practices in the particular business or community), if it tends to violate the spirit or the purposes of FEA, is considered 'staggering hours', with intent to evade the provisions of PRA. " (C. S. Long). "An employer has a right to have some employees start work earlier than others, but the employee's lunch hour must not exceed that of the general business community." (L.C. #46, September 16, 1933). "Lunch periods are not included in working hours* however, unreasonably long lunch periods may be interpreted as an attempt to evade the provisions of the FPA. The answer depends upon the facts in the case." (Card #1376). STATE GOVERNMENT. EMFLOYKES - See "Government s*. STATE LAWS IN CONFLICT WITH FEA - See "Laws". STAYS PROM HOUR AND t/AGE PROVISIONS 01' A TENTATIVELY APPROVED SUBSTITUTION - "The I'act that a substitution has been consented to by NEA for an industry, does not deprive an individual of his remedy under Paragraph 14, PEA. This means that even though the industry has been authorized to operate under wage and. hour provisions of their code in place of similar provisions of PEA there may still be peculiar reasons why the application of these provisions to an individual would work a great and unavoidable hardship. A petitioner in such a case should follow the identical procedure for one seeking an exception where no substitution has been allowed for his trade or industry. The individual should have his petition approved by his trade association and send it to Washington together with this approval. He may then sign the Certificate of Compliance by adding to. it the following notation: (l) To the extent of TEA consent as announced, we h?ve complied with the PEA by complying 1_r ith the substituted provisions of the Code submitted by the Trade Industry, and (P) Except for those interim provisions regarding wages and hours which have been approved by the Trade Association." (Card #1379). "He may comply with all provisions of FEA except those which he is petitioning to have excepted. Upon signing the Certificate of Compliance he will receive the "Blue Eagle from the Post Of i ice, but before displaying it, he must put a white bar across its breast with the word 'Provisional f on it. If the petition- is finally approved by NRA, he may take the bar down. If the petition is not aporoved by NEA, he must comply with the Agreement and any approved substituted provisions in full." (Card #1380), Also see "Substitutions. " STEEL PLATE FABRICATORS - "Section 5, Article 2, Petroleum Code is not intended to apply to contractors of this Code, Steel Flate Fabricators should operate under their own substitution," (Lt. Johnston). STEVEDORES, LONGSHOREMEN. wHAEF EMPLO Y EES. SAILORS AND CREWS OF VESSELS - "These classes of labor are under Paragraph #2 and #5, PEA, pending specific 9819 ::■ -172- ruling or adoption of substitute provisions or permanent Codes applying to them". (Lt. Johnston)'. STOCKHOLDERS OP .CORPORATIONS - See "Corporations". STORE OR SERVICE OPERATIONS (HOURS) - See "Paragraph #2, Provisions, FRA," pages 22 to 24. , STUDENTS AND LEARNERS - "The PRA does not apply to uona fide students of vocational schools (including 'Beauty ' Shop and'Barber Shop students). The term 'student' here is limited to those who receive no remuneration either by wages, commissions or gratuities. Students and learners may be employed on a wholly commission basis, in which ease the hour and wage provisions, PRA do not apply." (Card #1384). "Hourly wage rates apply to students working their way thru school, paid with board and tuition." (informal interpretation by L. G-. Wilson, August 19, 1933). Also see "Apprentices", and "Professional Occupations". STUDENT WORKERS - "The Folicy Board states that it is best not to give out a 'definite ruling' in regard to these students who are employed during the summer, consequently it would seem that they would have to be con- sidered as regular employees, and if the employer wants to make an excepti he should submit a formal petition under Paragraph 14, PRA to his local trade association, etc, and if it is approved, it should go thru the regular channels to Mrs. Pettit's section." College students working in restaurants for as much as four hours ner day for their board with no other monetary consideration cannot be considered an exception to the PRA, the strict application of the terms of the restaurant siibstitution would require restaurants to pay students and make deductions' not to exceed $3.00 per week, and in the case of 4 hours a day would require monetary consideration in excess of the meals under the minimum wage scale effective 1 ; (Lt. Johnston). _ : SUBSTITUTIONS TO THE FRA - "The employer has the choice of remaining bound by the original PRA, or operating under approved substitutions thereto applying to his particular business or industry. " (PRA Policy Board - W. P. Parnsworth). "If .he has signed the original FRA and Certificate of Compliance it is not necessary for him to sign a second Certificate of Compliance (with the Consent Clause added) upon apprpval of substitutions, provided he wants to operate under the substitutions rather than the original PRA." (Card #1355); SUPERANNUATED EMPLOYEES - See "Sheltered Workers". SWEAT SHOPS - "An employer taking advantage of 'sweat shops' outside' of his place of business at less than wage and hour provisions, PRA, violated the Agreement. Concerning home work in general, watch for subterfuge. The NRA required payment of minimum wage in compliance with FRA." (Card #1388). TAXI DRIVERS - "Taxi drivers are employees unless they are independent contractors; in no case are they outside salesmen. If they are not independent contractors, they are subject to maximum hour and minimum wage provisions. If they hi^e the cab themselves or if they are on a straight 9819 .] ;. -- commission basis, they are prooably independent contractors* If they have a flat guarantee plus a commission or bonus, they are employees and tne guarantee plus commission must at least equal the rainiinum wage." (Card #1389), "Taxicab drivers under paragraph #2, FhA, ii not owners of their own cab." (L. G. \ilson, August 19, 1933). TEACrfXRS - See "Schools, Private". TECHNICIANS - See "Professional Occupations". TELEQnAPHIC COM; .UNI CATIONS INDUSTiOc - "Telegraph messenger boys are exempt from minimum wages (zune rates are not to be reduced). In offices located in cities or towns or isolated places where not more than three employees, exclusive of messengers, are engaged, employees including messengers are exempt from maximum hours, proviied such employees shall not total more than 10$ of the -total employees employed*" (Int. Section). "The "'ord 'messenger' where it appears in the substitution approved ior the Telegraphic Communications Industry, shall include only outside messengers, effective December 15, 1j33." (National Compliance Board, November 14 and 22, 1933). "The provisions of the FitA are applicable to messengers in the Telegraphic Communications Industry engaged in delivering advertising, samples; and bulk material. • In the substitution approved for this industry, the word 'messenger' was intended to include onlv those messengers deliver- ing telegraph messages and doing work f hat is strictly related to the telegraph industry, including the delivery of addressed matter not in bulk quantities. It '"as not contemplated that the substitution should apply to messengers delivering bulk advertising, samples, etc. When telegraph messengers are doing work other than that specified above, they should be employed at the wage rate and hours snecified in the FRA. " (National Compliance Board, November 28, 1933). "Due to unusual circumstances, a substitution was allowed for paragraph #7, PEA, for the Telegraphic Communications Industry. This removes the requirement ior sn equitable readjustment, but it does not mean that zone rates must not be raised. It is to be hoped that these companies will carry out the purpose and spirit of the FRA by making an equitable readjustment, although by r strict legal interpretation they are not recuired to do so." (',. F. Parnsworth, October 10, 1933). "Under the substituted provision for Paragraph 7, PSA approved for the Telegraphic Communications Industry, -hen the hours oi work of an employee paid by the hour are reduced to the maximum under the substi- tution, his hourly rfte must be increased so that his weekly compensation will be the same as before the reduction in hours." (?RA Policy Board, October 19, 1933). "The changing of managers of branch telegraph offices fr^m a salary basis to a commission basis is considered a violation of the FRA in the event the change results in p decrease in' their net income." (Advisory Council. Compliance Division, June 6, 1934). 9819 -174- TERRITORIAL POSSESSIONS - "Due to the entirely different hours of labor and wage rates orevailing. in our territorial -oossessions, re are not planning to extend to them the PRA. It is obvious that they cannot be regulated on the same basis as industries in the United States. Of 'course, Section 3A of this Lav? applies to the insular possessions. • If any Code is presented by them we shall have to act on it." (Hugh S. Johnson). Also see '^Hawaiian Islands".- . THIRD CL^SS POST OFFICES - See "Post Office r Employees". TIPS AND GRATUITIES - "In no case nay tips or gratuities be applied in computing a minimum wage." (Lt. Johnston). "However, it is considered perfectly proper for restaurants, clubs, etc. to substitute a service charge for tips eaid allot whatever, portion of the. revenue derived from this charge to the waiters the management consider proper, "atch sub- stitutions or codes' for exceptions." (Card #1394), TOBACCO (CHEWING. AITS. .Sr.OKIHG) - See. !? Cigarette, Chewing, and Smoking Tobacco and Snuff Industry". _ ' TRADE AREA ( - It II HgD IATE ) • - "'Immediate trade area 1 is the area in which there, is direct retail competition. In case of question, the decision /shall be made by the. local chamber of commerce or similar organisation subject to review by the State Recovery Board." (Basic Interpretation No. 13, NRA Bulletin #4). ..■ TRADE ASSOCIATIONS PEP. SE - "Trade associations may upon compliance with PRA, be awarded the Blue Eagle even though their industries have not signed under ERA or Code, as an organization is an entit - " - in itself. However, it should avoid giving the impression that its permission to use the Blue Eagle extends to the industries which it represents," (Lt. Johnston). TRANSPORTATION SERVICES - See "Public Utilities, Railroads or Other Forms of Transportation Service". TRUCK DRIVERS - "Deliverymen who incidentally take orders and whose duties come under Paragraph #2 and #5 PRA, are not excepted from maximum hours nor from minimum wage provisions unless they are wholly on a com- mission basis. .However, check all substitutions for exceptions to the above, and note parti cularly substitutions applying to the Trucking, Bakery, Fluid Milk, and Laundry Industries. The above ruling, as to truck drivers who sell also applies to drivers who buy on commission - such as truck driver purchasers of farm products, junk, etc." (Card #1399). "Until such time as the Trucking Industry Code is approved, it is temporarily agreed that time and one-third' be paid for excess of 40 hours per week or 8 hours per day in emergency in case of truck drivers on long hauls," (.PRA Policy Board or thru Mr, Richberg, August 25, 1933). Also see "Deliverymen", "Commission Workers", and "Trucking Industry". TRUCKING INDUSTRY. APPLICATIONS OF SUBSTITUTIONS - "(l) The Trucking Industry substitutions apply to the entire truck transportation industry (except transportation of passengers) including employees on trucks used by other trades or industries transporting their own goods exclusively. (2) Indus- tries which use trucks should work their truck drivers and helpers under QR1Q -17! - ;ne trucking industry substitutions, unless substitutions, for their own industry cover these employees." (Card : 1 J 0). "Under the trucking sur- stitution, a helper on a truck doing loading, unloading, and driving in m emergency should be paid for the tine he is en route from noint of de- fcrture of the truck to a destination at which lording or unloading is to )e done." (F. S. Folia 1 :, January 17, 1934). ION CONTRACTS - See "Contracts (Labor Union)". JMIOH PdlPPJESENTATIVES - "Mr. Richberg has ruled that it is illegal for an employer under a code or the PRA to refuse to meet and confer with the chosen representatives of the employees, even though such representa- tives are not- in his employ. Mr. Richberg has also stated that an employer is within his rights in such a case in refusing to deal with a labor union official who has not been designated no a representative of the employees." (L. C. #58, September 28, 1933). UTILITY COMPANIES FRIVATELY OENED vs EXECUTIVE ORDER #6354 - "Privately owned utility companies located in towns of 'less than 2,500 "oersons which have 5 or less employees are relieved from observing the PRA or codes of Fair Competition if service is furnished locally for only one town in which it is located." (T. I. "Emerson, Legal Division, March 27, 1934). VETERINARY PURSES - See "professional Occupations". VOCATIONAL STUDE'TTS - See "Students and Learners", '..AGE DIFFERENTIALS - See "Paragraph #7, Provisions", page 28. WATCHMEN - "Under the original unmodified PRA, watchmen are subject to Paragraphs #2 and #5. Whenever watch en are specifically 'excepted' in approved substitutions for either Paragraphs #2 or #3, PRA, the" r are not amendable to either maximum hours or minimum wages. However, if their hours are shown in substitutions for either Paragraphs #2 or #3, PRA, to be limited by, for example, the average number of hours employed over a speci- fied period; they are to receive the minimum wage specified under Para- graph #5, PEA." (Lt. Johnston). Office Building Watchmen - See "Office Building Industry Substitution". WHITE STRIP PIT INSIGNIA - See "Insignia". WINDOW TRIMMERS A! W? SHOE CARD WRITERS - "Such occupations are not classed as professional unless they are highly trained and skilled and their v -ork is creative ratner than routine. It is apparent that to be classed as professional such workers should be employed primarily in their professional capacities." (F. L. #9, November 20, 1933). WITHDRAW DIG FROM NRA AFTER SIGN IMC PEA - "No firm or individual who has once signed the PRA may withdraw from the pledge until the expiration there- of December 31, 1933. If an employer who signed the Agreement finds, be- cause of peculiar circumstances in his individual case, great and unavoid- able hardship will reuult in complying strictly r, ith all provisions of the 9819 -176- Agreement, he nay petition for a stay from the provisions which rould cause this hardship, as "orovid'ed in Paragraph #14, PRA. " (Lt. Johnston). "AnjT-one continuing to'' display the Blue Eagle after each of the t^o ex- tensions of the PEA effective January 1,'. 1334 and I'ay 1, 19^4 was con- sidered as "bound hy the provisions of the. PEA and any applicable approved substitutions thereto until a code of fair competition applicable to the signers business became effective." (See Executive Orders #6516 and #6678-A) . . ' WORK SPOILED THEOUC-H CARELESSNESS -. See "Deductions from Wages". WORK WEEK - "An employer may follow the calendar week or establish his own fiscal week. In the case of a fiscal week, the succeeding week starts where the preceding week ends. For example, if the employer should set Wednesday as the beginning of his fiscal neek, this week would end the following Tuesday evening and the next week rrould begin the following ' Wednesday morning," (interpretation Section, October 2, 1933). WOTOD STRIPE ON INSIGNIA - See "Insignia". )819 -177- APPEIJDIX H PUBLIC - NO. 369 - 73d CONGRESS H.R. 9002 AN ACT To provide relief to Government contractors whose costs of preformance were increasod as a result of compliance with the Act approved June 16, 1933, and for other purposes, 3E IT ENACTED BY THE SENATE AND H.)USE OF REPRESENTATIVES OF THE UNITED STATES OF AlERICA IN CONGRESS ASSEMBLED, That the Comptroller General of the United States he, and he is hereby, authorized and directed to adjust and settle on a fair and equitable basis claims of persons who entered into a contract or contracts with the United States prior to August 10, 1933, including subcontractors and mater- ialmen.': performing work or furnishing material or necessary fuel direct to the contractor under such contracts, for additional costs incurred by reason of compliance on and after August 10, 1933, with a code or codes of fair competition approved by the President under section 3 of the Act approved June 16, 1933, known as the "National Industrial Recovery Act", or by reason of compliance with an agree- ment with the President executed under section 4 (a) of said Act in the performance after August 10, 1933, of the contract or any part thereof. If the event that such contract was performed wholly or in part by a surety on the bond of the contractor, the claim may be presented by and settlement made with such surety, but such surety shall have no greater rights than would have a cc rued to the con- tractor had such contractor completed the contract. Any contractor, subcontractor, or completing surety desiring an adjustment and settlement with respect to any such contract under this Act for increased costs incurred after August 10, 1933, by reason of com- pliance with the codes or reemployment agreements shall file with the department or administrative establishment concerned a verified claim itemizing such additional costs, and any subcontractor on any such contract may file his claim directly with the head of the de- partment or independent establishment concerned or through the con- tractor. After the claim has been examined by the head of the de- partment or independent establishment concerned, or such person or persons as he shall designate, the claim shall be transmitted to the Comptroller General of the United States, accompanied with an ad- ministrative finding of fact and recommendation with respect to the claim. Sec, 2. In no event shall any allowance exceed the amount by which the cost of performance or such part of the contract as was performed subsequently to August 10, 1933, v as directly increased by reason of compliance with a code of codes of fair competition, or with an agreement with the President, as aforesaid. Sec, 3. In no event shall any allowance be made which would result in a profit to the claimant exceeding 7 per centum on the cost of performance of the contract in respect of which the claim is made. The head of the department or establishment concerned, subject to the 9619 -178- approval of the Comptroller General, shall have the authority, from tine to time, to determine the actual cost and profit thereon. Sec* 4. No claim hereunder shall "be considered or allowed unless presented within six months from the date of approval of this Act or, at the option- of the claimant, within six months after the completion of the contract, except in the discretion of the Comptroller General for good cause shown by the claimant. Sec. 5. Appropriations for the purpose of paying claims allowed hereunder and the expenses of determining the claims are hereby authorized. Sec, 6. In all proceedings under this Act witnesses may be com- pelled to attend, appear, and testify and produce books, papers, and letters, or other documents; and the claim that any such testimony or evidence may tend to incriminate the person giving the same shall not excuse such witness from testifying, but such evidence or testi- mony shall not be used against such person in the trial of any crim- inal proceedings,. Nothing in this Act shall in any way relieve or excuse any officer of the United States or any claimant from prosecu- tion under any statute of the United States for, any fraud or criminal conduct. Approved, June 16 , 1934. 9819 179 ArtSuDlX I PHA CENSUS - TASULATIuN 3Y STATES EMPLGYkiENT AND PAY?.('J-S, JUNE, UGTCdEfl, 1933 jivisiun and State Establishments Employment per cent of Total Number Reporting Per cent of Total June Weekly Payroll Octo ber iVeekly Income Per Worker June October Per cent Change Per cent of Total Per cent Change STATES 100.00 b43,0b0 100.00 10,808,004 12,5b4,344 15.6 100.00 $238,458,411 ?2o2,bl3.47C 18.5 $21.94 $22.1*9 Oil ENGLAND Maine Kew Hampshire Vermont Massachusetts Rhone Island Connecticut . I'. ,L£ ATLANTIC 8. 7 1 * .8b .57 •35 4.58 .72 1.67 24.41 5b. 199 5.538 3.648 2,258 29,431 4, bOO 10, 724 10.09 l,J9b,lb4 l,2bO,189 15b. 979 .08 .64 .18 5.M 1.00 -2x1 L. 7^.399 69,302 20,044 587.705 108,909 235.805 84,301 77,3>*5 22,987 671, b28 126,119 277 .809_ 27.28 2.9o4.594 3.3b0.721 15.0 13.3 11.6 1^.7 1^.3 15.3 JJ*8_ 13.4 9.56 22,797.037 26,949,018 18.2 .55 .45 .16 5.40 .90 2.10 1,305,604 1,068,272 376,966 12,884,409 2,150,26b 5.011.520 30. b3 73.049,165 1,522,928 1,303,834 441,680 15,040,970 2,611,b35 6. 027.971 85. 5E6.32 16.6 22.1 17.2 I6.7 21.5 20.3 17.2 20.80 17.55 15.41 18.81 21.92 19. 7" .21*25- 24.64 21.38 18.07 16.86 15.21 22.39 20.71 21.70 2 5l47 Sew York Kew Jersey Pennsylvania 12.93 8.07 83,158 21,951 51 . 470 13.49 l,4fab,061 3.62 393. "*3l 10.17 1.105.102 1.657,706 446,235 1.25b. 780 13.1 13. 1 * -13x1. 17.26 4.04 9.33 4i,i50,b93 9.640,358 22. 258.114 "7.135.779 11,164,712 27.285.829 15.8 22.6 28.07 24.50 20.14 28.43 25.02 .21x11- U lSI NuhTH C E NTRAL 21.4 2 137.728 2 2.59 2.454.818 2.883,97s JJx5_ 22, b4 53.iW.135 o4. 37^.038 19.2 SLAS 2 2.32 Ohio Indiana Illinois Michigan Wisconsi n 0.30 2.83 b.30 3-33 _2x_b5_ 40,508 18,208 40,541 a, 437 17.034 1ST Nu.-.TH Ca.THAL 11.23 Jg^Sii- 6.53 2.37 7.64 4.06 1.98 b.42 710,017 258,083 830. 5o4 441,273 214.881 697.8^5 834,214 310.991 994,187 500,687 243.896 800.115 17.5 2C.5 19.7 13.5 13.5 0.26 2.04 8.35 4.14 1.84 -lim- it. 925. 599 4,874,915 19,920,034 9.870,239 t. 399. 348 17, 809,925 fe.013.17/ 24,529,568 10,806,345 5.134.023 19.3 23.3 23.1 10.3 16.7 5.98 14 T 267.1 78 lb. 726.957 17.2 21.02 18.89 23. 98 22.37 S0.47 ■5 20.44 21. 19.3 1 * 24.67 21.75 21.05 -20.91 SOUTH ATLANTIC Minnesota Iowa lUssourl H. Dakota S. Dakota Nebraska Kansas 2.43 2.16 3.01 .41 .44 1.23 1.57 7.95 15.599 13,862 19.348 2,611 2,823 7.896 10.092 51.0 95 1.5 1 * 1.01 2.47 .11 .15 .53 _*62- I6t,923 109,335 268,277 12,115 16,636 57,2bb & 7. 3Q 3 198,539 125.57 1 * 298,011 15,180 18,91' bb,224 77.67 8.96 974.24b 1.12f.2b8 18.9 14.9 11.1 25.3 13.7 15.6 15.7 1.52 .88 2.31 .10 .15 .48 _x53_ 3,628,285 2,087,833 5,519,218 244,047 357.993 1,156,110 1.273.692 t.35 1 +.797 2,448,588 6,381,9b9 305.399 401,384 l.3 1 *7.987 1.486.833 20.0 17.3 15.6 25-1 12.1 16.6 lb.7 6.51 15.531.392 19.544.174 25.8 21.74 19.10 20.57 20.14 21.52 20.19 18.92 is.qt 21.93 19.50 21.42 20.12 21.22 20.35 19.1jj_ 17.34 Delaware Maryland Dlst, Columbia Virginia f. Virginia N. Carolina S. Jarolina Georgia Florida )819 Data for questionnaires which do not clearly indicate that a breakdown lias been made on a proper geographical basis; data for establishments operating in two or more States, such as, railroads, steam boats, pipe lines, telephone and telegraph, and po.ver companies; the reports of companies haying plants in various States for which individual reports were not submitted but for which a master report was supplied; and data from returns received for a State after the State had been sent to the Tabulation Section for punching and tabulating. HRA Division of Review U.S -18i - APPENDIX J (Eight copies to be submitted) BASIC CODE FOR SUBSTITUTIONS "BEFORE THE POLICY BOARD IN P. R. A. FOR SECTIONS TO INCLUSIVE. DEFINITION: The term trade/ industry as used herein includes hut is not limited to SECTION I. LABOR PROVISIONS: A. Employees shall have the right to organize and bargain col- lectively through representatives of their own choosing, and shall he free from interference, restraint, cr coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in any other concerted activities for the purpose of collective bargaining or other mutual aid or protection; 3. 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 or- ganization of his own choosing; and C. Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed 'by the President. SECTION II. CHILD LABOR: After August 31, 1933, no person under 16 years of age shall be employed; PROV IDE D , however, that where a state law specifies a higher minimum age, no person below the age so specified by such law, shall be employed within that state. SECTION III. MAXIMUM HOURS: A. Employees not covered by Section III 3 (except outside sales- men) may not be employed in any place or manner for more than months' period, but may be employed a maximum week of hours for any weeks, within any months period; provided, however, that such employees may not be employed more than eight hours in any one day. The hours of any store or service operation shall not be reduced to below hours in any one week, unless such hours were less than hours per week before July 1, 1933, and in the latter case, such hours shall not be reduced at all. 9819 -181- 3. ITo factory or median icr.l n orVcr or - r isan shall be employed more i a maximum week of hours, averaged over a months' p iod, "but nay be Loyed t maximum week of >urs for any • • eks "ithin such months' period; pro- vided, ho"'ever, that si ch empl03 r ees shall not be employed more an hours in any one day. C. 'The maximum hours fixed in the foregoing oaragraohs III A and III 3 shal] not apply to employees in establishments employing not more than two persons in to'Pis of less then 25 f oopulation, which towns are not a part of a larger trade area; nor to registered armacists or other professional persons employed in their pro- fessions; nor to employees in a managerial or executive capacity, who receive more tarn $35.0^ per wee 1 -; nor to employees on emer- gency maintenance anc- repair work; nor to very special cases There restrictions of ho^rs of highly skilled workers on continuous pro- cesses would unavoidably reduce production (state classes and work) But in any such special case, at least time and one-third shall he paid for hours worked in excess of the maximum hours per day here- inbefore provided; not to The population for the purposes of this Code shall be determined by reference to the 1930 Federal Census. SECTION IV. MINIMOfci r 7A.GES: A. Employees in the classes covered by paragraph III A shall be paid not less than dollars per week in an}*" city of over 50C , 0' r population or in the immediate trade area of such a city; nor less than dollars per week in any city of between 2,500 and 250,000 population, or in the immediate trade area of such city; and in towns of less than 2,500 population, wages shall be increased by not less than percent, provided that this shall not require wages to be paid in excess of per week. 3. Employees of the classes mentioned in paragraph III 3 shall be paid not less than cents per hour. It is agreed that this paragraph establishes a guaranteed minimum rate of pay, re- gardless of '""nether the employee is compensated on the bases of a time rate or on niece work performance. C. (List here exceptions to and exemptions from the above wage fig- ure, if any.) ^ SECTION V. P PRESIDENTIAL MODIFICATION: The President may, from time to time, cancel or modify any order, approval, license, ruling or regulation issued under this title. 9819# OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION THE DIVISION OF REVIEW THE WORK OF THE DIVISION OF REVIEW Executive Order No. 7075, dated June 15, 1935, established the Division of Review of + -he National Recovery Administration. The pertinent part of the Executive Order reads thus: The Division of Review shall assemble, analyze, and report upon the statistical information and records of experience of the operations of the various trades and industries heretofore subject to codes of fair competition, shall study the ef- fects of such codes upon trade, industrial and labor conditions in general, and other related matters, shall make available for the protection and promotion of the public interest an adequate review of the effects of the Administration of Title I of the National Industrial Recovery Act, and the principles and policies put into effect thereunder, and shall otherwise aid the President in carrying out his functions under the said Title. I hereby appoint Leon C. Marshall, Director of the Division of Review. The study sections set up in the Division of Review covered these areas: industry studies, foreign trade studies, labor studies, trade practice studies, statistical studies, legal studies, administration studies, miscellaneous studies, and the writing of code his- tories. The materials which were produced by these sections are indicated below. Except for the Code Histories, all items mentioned below are scheduled to be in mimeo- graphed form by April 1, 1936, THE CODE HISTORIES The Code Histories are documented accounts of the formation and administration of the codes. They contain the definition of the industry and the principal products thereof; the classes of members in the industry; the history of code formation including an account of the sponsoring organizations, the conferences, negotiations and hearings which were held, and the activities in connection with obtaining approval of the code; the history of the ad- ministration of the code, covering the organization and operation of the code authority. the difficulties encountered in administration, the extent of compliance or non-compliance, and the general success or lack of success of the code; and an analysis of the operation of code provisions dealing with wages, hours, trade practices, and other provisions. These and other matters are canvassed not only in terms of the materials to be found in the files, dux also in terms of the experiences of the deputies and others concerned with code formation and administration. The Code Histories, (including histories of certain NRA units or agencies) are not mimeographed. They are to be turned over to the Department of Commerce in typewritten form. All told, approximately eight hundred and fifty (850) histories will be completed. This number includes all of the approved codes and some of the unapproved codes. (In W ork Material s No .18, Content s of Code Histries . will be found the outline which governed the preparation of Code Histories.) (In the case of all approved codes and also in the case of some codes not carried to final approval, there are in NRA files further materials on industries. Particularly worthy of mention are the Volumes I, II and III which constitute the material officially submitted to the President in support of the recommendation for approval of each code. These volumes 9768--1 . -ii- set forth the origination of the code, the sponsoring group, the evidence advanced to sup- port the proposal, the report of the Division of Research and Planning on the industry, the recommendations of the various Advisory Boards, certain types of official correspondence, the transcript of the formal hearing, and other pertinent matter. There is also much offi- cial information relating to amendments, interpretations, exemptions, and other rulings. The materials mentioned in this paragraph were of course not a part of the work of the Division of Review. ) THE WORK MATERIALS SERIES In the work of the Division of Review a considerable number of studies and compilations of data (other than those noted below in the Evidence Studies Series and the Statistical Material Series) have been made. These are listed below, grouped according to the char- acter of the material. (In Work M aterials No . 17 , Tentati ve O utlines and Summaries of Studies in Process , these materials are fully described). I ndustry Studies Automobile Industry, An Economic Survey of Bituminous Coal Industry under Free Competition and Code Regulation, Economic Survey of Electrical Manufacturing Industry, The Fertilizer Industry, The Fishery Industry and the Fishery Codes Fishermen and Fishing Craft, Earnings of Foreign Trade under the National Industrial Recovery Act Part A - Competitive Position of the United States in International Trade 1927-29 through 1934. Part B - Section 3 (e) of NIRA and its administration. Part C - Imports and Importing under NRA Codes. Part D - Exports and Exporting under NRA Codes. Forest Products Industries, Foreign Trade Study of the Iron and Steel Industry, The Knitting Industries, The Leather and Shoe Industries, The Lumber and Timber Products Industry, Economic Problems of the Men's Clothing Industry, The Millinery Industry, The Motion Picture Industry, The Migration of Industry, The: The Shift of Twenty-Five Needle Trades From New York State, 1926 to 1934 National Labor Income by Months, 1929-35 Paper Industry, The Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans- portation, January 1923, to date Retail Trades Study, The Rubber Industry Study, The Textile Industry in the United Kingdom, France, Germany, Italy, and Japan Textile Yarns and Fabrics Tobacco Industry, The Wholesale Trades Study, The Women's Neckwear and Scarf Industry, Financial and Labor Data on 9768—2 - iii - Women's Apparel Industry, Some Aspects of the T rade Practic e St udies Co..— odities. Information Concerning: A Study of NRA and Related Experiences in Control Distribution, Manufacturers' Control of: Trade Practice Provisions in Selected NRA Codes Distributive Relations in the Asbestos Industry Design Piracy: The ProbJem and Its Treatment Unde.r NRA Codes Electrical Mfg. Industry: Price Filing Study Fertilizer Industry: Price Filing Study Geographical Price Relations Under Codes of Fair Competition, Control of Minimum Price Regulation Under Codes of Fair Competition Multiple Basing Point System in the Lime Industry: Operation of the Price Control in the Coffee Industry Price Filing Under NRA Codes Production Control in the Ice Industry Production Control, Case Studies in Resale Price Maintenance Legislation in the United States Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. Trade Practice Rules of The Federal Trade Commission (1914-1936) : A classification for comparison with Trade Practice Provisions of NRA Codes. Labor Studies Cap and Cloth Kat Industry, Commission Report on Wage Differentials in Earnings in Selected Manufacturing Industries, by States, 1933-35 Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-35 Fur Manufacturing, Commission Report on Wages and Hours in Hours and Wages in American Industry Labor Program Under the National Industrial Recovery Act, The Part A. Introduction Part B. Control of Hours and Reemployment Part C. Control of Wages Part D. Control of Other Conditions of Employment Part E. Section 7(a) of the Recovery Act Materials in the Field of Industrial Relations PRA Census of Employment, June, October, 1933 Puerto Rico Needlework, Homeworkers Survey Administrative Studies Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con- ditional Orders of Approval Administrative Interpretations of NRA Codes Administrative Law and Procedure under the NIRA Agreements Under Sections 4(a) and 7(b) of the NIRA Approve Codes in Industry Groups, Classification of Basic Code, the — (Administrative Order X-61) Code Authorities and Their Part in the Administration of the NIRA Part A. Introduction Part B. Nature, Composition and Organization of Code Authorities 9768—2. Part C. Activities of the Code Authorities Part D. Code Authority Finances Part E. Summary and Evaluation Code Complianoe Activities of the NRA Code Making Program of the NRA in the Territories, The Code Provisions and Related Subjects, Policy Statements Concerning Content of NIRA Administrative Legislation Part A. Executive and Administrative Orders Part B. Labor Provisions in the Codes Part C. Trade Practice Provisions in the Codes Part D. Administrative Provisions in the Codes Part E. Agreements under Sections 4(a) and 7(b) Part F. A Type Case: The Cotton Textile Code Labels Under NRA, A Study of Model Code and Model Provisions for Codes, Development of National Recovery Administration, The: A Review of its Organization and Activities NRA Insignia President's Reemployment Agreement, The President's Reemployment Agreement, Substitutions in Connection with the Prison Labor Problem under NRA and the Prison Compact, The Problems of Administration in the Overlapping of Code Definitions of Industries and Trades, Multiple Code Coverage, Classifying Individual Members of Industries and Trades Relationship of NRA to Government Contracts and Contracts Involving the Use of Government Funds Relationship of NRA with States and Municipalities Sheltered Workshops Under NRA Uncodified Industries: A Study of Factors Limiting the Code Making Program Legal S tud ies Anti-Trust Laws and Unfair Competition Collective Bargaining Agreements, the Right of Individual Employees to Enforce Commerce Clause, Federal Regulation of the Employer-Employee Relationship Under the Delegation of Power, Certain Phases of the Principle of, with Reference tc Federal Industrial Regulatory Legislation Enforcement, Extra-Judicial Methods of Federal Regulation through the Joint Employment of the Pcwer of Taxation and the Spending Power Government Contract Provisions as a Means ;f Establishing Proper Economic Standards, Legal Memorandum on Possibility of Industrial Relations in Australia, Regulation of Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Ccu- merce Clause, Cases on Legislative Possibilities of the State Constitutions Post Office and Post Road Power — Can it be Used as a Means of Federal Industrial Regula- tion? State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility t_f Variation in Trade Practices and the Anti-Trust Laws Treaty Making Power of the United States War Power, Can it be Used as a Means of Federal Regulation of Child Labor? 9768—4. - V - THE EVIDENCE STUDIES SERIES The Evidence Studies were originally undertaken to gather material for pending court cases. After the Schechter decision the project was continued in order to assemble data for use in connection with the studies cf the Division of Review. The data are particularly concerned with the nature, size and operations of the industry; and with the relation of the industry to interstate commerce. The industries covered by the Evidence Studies account for more than one-half of the total number of workers under codes. The list of those studies follows: Automobile Manufacturing Industry Automotive Parts and Equipment Industry Baking Industry Boot and Shoe Manufacturing Industry Bottled Soft Drink Industry Builders' Supplies Industry Canning Industry Chemical Manufacturing Industry Cigar Manufacturing Industry Coat and Suit Industry Construction Industry Cotton Garment Industry Dress Manufacturing Industry Electrical Contracting Industry Electrical Manufacturing Industry Fabricated Metal Products Mfg. and Metal Fin- ishing and Metal Coating Industry Fishery Industry Furniture Manufacturing Industry General Contractors Industry Graphic Arts Industry Gray Iron Foundry Industry Hosiery Industry Infant's and Children's Wear Industry Iron and Steel Industry Leather Industry Lumber and Timber Products Industry Mason Contractors Industry Men's Clothing Industry Motion Picture Industry Motor Vehicle Retailing Trade Needlework Industry of Puerto Rico Painting and Paperhanging Industry Photo Engraving Industry Plumbing Contracting Industry Retail Lumber Industry Retail Trade Industry Retail Tire and Battery Trade Industry Rubber Manufacturing Industry Rubber Tire Manufacturing Industry Shipbuilding Industry Silk Textile Industry Structural Clay Products Industry Throwing Industry Trucking Industry Waste Materials Industry Wholesale and Retail Food Industry Wholesale Fresh Fruit and Vegetable Indus- try Wool Textile Industry THE STATISTICAL MATERIALS SERIES This series is supplementary to the Evidence Studies Series. The reports include data on establishments, firms, employment, Payrolls, wages, hours, production capacities, ship- ments, sales, consumption, stocks, prices, material costs, failures, exports and imports. They also include notes on the principal qualifications that should be observed in using the data, the technical methods employed, and the applicability of the material to the study of the industries concerned. The following numbers appear in the series: 9768—5 . - vi - Asphalt Shingle and Roofing Industry Fertilizer Industry Business Furniture Funeral Supply Industry Candy Manufacturing Industry Glass Container Industry Carpet and Rug Industry Ice Manufacturing Industry Cement Industry Knitted Outerwear Industry Cleaning and Dyeing Trade Paint, Varnish, and Lacquer, Mfg. Industry Coffee Industry Plumbing Fixtures Industry Copper and Brass Mill Products Industry Rayon and Synthetic Yarn Producing Industry Cotton Textile Industry Salt Producing Industry Electrical Manufacturing Industry THE COVERAGE The original, and approved, plan of the Division of Review contemplated resources suf- ficient (a) to prepare some 1200 histories of codes and NRA units or agencies, (b) to con- solidate and index the NRA files containing some 40,000,000 pieces, (c) to engage in ex- tensive field work, (d) to secure much aid from established statistical agencies of govern- ment, (e) to assemble a considerable number of experts in various fields, (f) to conduct approximately 25% more studies than are listed above, and (g) to prepare a comprehensive summary report. Because of reductions made in personnel and in use of outside experts, limitation of access to field work and research agencies, and lack of jurisdiction over files, the pro- jected plan was necessarily curtailed. The most serious curtailments were the omission of the comprehensive summary report; the dropping of certain studies and the reduction in the coverage of other studies; and the abandonment of the consolidation and indexing of the files. Fortunately, there is reason to hope that the files may yet be cared for under other auspices. Notwithstanding these limitations, if the files are ultimately consolidated and in- dexed the exploration of the NRA materials will have been sufficient to make them accessible and highly useful. They constitute the largest and richest single body of information concerning the problems and operations of industry ever assembled in any nation. L. C. Marshall, Director, Division of Review. 9768—6 . )0M UNIVERSITY OF FLORIDA 3 1262 08542 4991 38 MS #11 Ml II I I I Mil ■ Kwfiilty 'J;uHj