Approved Code No. 66-Amendment No. 1 Registry No. 1741-2-03 

NATIONAL RECOVERY ADMJNISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

MOTOR BUS INDUSTRY 

AS APPROVED ON APRIL 26, 1934 

WE DO OUR PART 

UNIV. OF· FL LIi. 

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WASHINGTON: 1934 

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Approved Code No. 66-Amendment No. 1 

AMENDMENT TO CODE OF F AIR COl\'iPETITION 

FOR THE 

MOTOR BUS INDUSTRY 

As Approved on April 26, 1934 

ORDER 

APPROYING AMEXDl\fENT TO THE ConE OF FAIR CoMPETITION FOR THE 

l\!IoTOR B s I xousTnY 

An application having been duly made pursuant to and in full 

< ompliance with the provisions of Title I, of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of an amendment to a Code of Fair Competition for the Motor Bus Industry, 

and hearings having been duly held thereon and the annexed report 

on said amendment, containing findings with respect thereto, having 

been made and directed to the President: 

NOV,r, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate, by reference, said 

annexed report and do find that said amendment and the Code as 

constituted after being amended comply in all respects with the 

pertinent provisions and will promote the policy and purposes of 

said Title of said Act, and do hereby order that said amendment 

be and it is hereby approved, and that the previous approval of said 

Code is hereby modified to include an approval of the said Code in 

its entirety as amended. 

HUGH s. JOHNSON' 

Admi'nistrator for Industrial Recovery. 

Approval recommended: 

SoL A. RosENBLATT, 

Division Administrator. 

, 1/ASHIXGTON, D.C., 

April 26, 1931,. 

5G002°-482- 161-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The ~1hite Ho use. 

Srn: This is a report of the hearings on an amendment to the Code 

of Fair Competition for the Motor Bus Indu try conducted in "Ta~hington on the 16th day of January, 1934, "'\\11.th adjourned meetings up 

to and including- the 23rd day of March 1934, in accordance with th 

provisions of the .r ational Industrial Recovery Act and the Co_de of 

Fair Competition for the :Motor Bus Industry, Article VI Sect10n 2, 

Subsection (i). 

Every person who requested an appearance ,Y as fairly heard in 

public in accordance with the regulations of the National Recovery 

Administration. There were pre ent duly authorized repre entatives of the Code Authority and other representatives of the 

Industry .. The amenclment adds to Article VII, Section 2 of the said Code 

an additional Subsection designated Sub ection ( c). 

The Code of Fair Competition for the J.\1otor Bus Industry, 

approved October 31, 1933, contained no provision :for the establishn1ent of minimum rates, fares or charges of any kind or character 

which has resulted in destructive, unfair and below cost competition 

by members of the Industry. The l' ational Association of Motor 

Bus Operators submitted an amendment which will correct this condition by providing for the establishment of minimum rates, fares or 

charges in specific cases, below which it shall be unfair competition 

for members of the Indu try to furni h transportation. 

Labor representatives were pre ent at the first hearing and have 

stated that they have no objection whatever to the said amendment. 

There were no other objections at the hearing. 

The Deputy Admini trator in his final report to me on said amendment to said Code having found as herein set forth and on the 

basis o:f all the proceedings in this matter : 

I find that: 

(a) The amendment to said Code and the aid Code as amended 

are well designed to promote the policies and purposes of Title I 

of the National Industrial Recovery Act including the removal of 

obstructions to the free fl.ow of inter tate and foreign commerce 

which tend to diminish the amount thereof, and will provide for 

the general welfare by promoting the organization of industry for 

the purpose of cooperative action among trade groups, by inducing 

and maintaining united action of labor and management under adequate governmental sanction and supervision, by eliminating unfair 

competitive practices, by promoting the fullest possible utilization 

of the present productive capacity of industries, by avoiding undue 

restriction of production, by increa ·ing the consumption of indus-

(2) 
3 

trial and agricultural product through increasing purchasing power 

by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the pertinent provision. of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 and 

Sub ection (b) of Section 10 th 0 reof. 

(c) The National Association of l\rlotor Bus Operator was and is 

an industrial as ociation truly representative of the aforesaid Industry and that said association imposed and imposes no inequitable 

restrictions on admission to member. hip therein and has applied for 

or consents to this amendment. ( <l) The amendment and the Co<le as amended a re not designed to 

and will not permit monopolies or monopolistic practices. 

( e) The amendment and the Code as amended are not designed to 

and "ill not eliminate, or oppress small enterprises and will not 

operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to the approval of 

said amendment. 

For these reasons, this amendment has been approved. 

Re pectfully, 

AI'RTL 2G, 1934. 

HUGHS. JOHNSON, 

Administrator. 
AMEND1fENT TO CODE OF FAIR COMPETITION FOR 

THE :MOTOR BUS INDUSTRY 

There shall be added to Section 2 of Article VII of the Code of 

Fair Competition for the Motor Bus Industry the following Subsection to be known as Subsection ( c). 

ARTICLE VII, SECTION 2, SUBSECTION (C)-RATES AND TARIFFS 

In order to carry out the purpose of the Act including the limitation of hours of employment, the payment of minimum ,vages 

herein established and the furnishing of employment for labor, it 

is the purpose of this Section to permit, in specific cases of interstate transportation, the establishment of minimum rates, fares or 

charges below which it hall be unfair competition for members of 

the Industry to furnish such interstate transportation, but not to 

permit thereby the establishment of maximum rea sonable rates, fares 

or charges. After any rate, fare or charge has become effectiYe in 

either of the ways herein provided, it shall be unfair competition 

for any member of the Industry engaging in such transportation 

to publish, demancl or collect any rate, fare or charge which is less 

than the effective rate, fare or charge until the same has been modified or revised pursuant to the proYisions of this Section. 

a. Any 111.ember of the Industry may at any time file a complaint 

with the Code Authority that any rate, fare or charge for interstate 

tran ·portation whether or not prescribed under the provi ions of 

this Section o-r filed by a member of the Indn try, is below the lowe t rea onable co t of furnishing such transportation and therefore 

results in unfair competition. Upon receipt of any such complaint, 

the Coe.le Authority shall give at least ten (10) days' noti:::e of hearing to all member of the Industry ,Yho are directly affected by 

such rate, fare or charge. At such hearing, to be held within thirty 

(30) days after receipt of the complaint, unless otherwise provided 

by the Administrator, the Code Authority together with the Administration :Member thereof shall procure and hear all pertinent facts 

including tatistics relating to the cost of the service in question. 

If the Code Authority shall find at such hearing that any such rate, 

fare or charge complained of is below the lowest reasonable cost, as 

defined by the Administrator, of furnishing such transportation 

and therefore re ults in unfair competition, the Code Authority shall 

arrive at a minimum rate, fare or charge necessary to meet such . 

lowest rea onable cost of the serYice to be rendered. Such rate, fare 

or charge so arrived at shall be immediately submitted to the Administrator and shall be advertised for a period of five ( 5) day by 

posting a copy of the same in the Post Office of such of the terminals 

between which the rate, fare or charge is applicable, unless the 

Administrator shall otherwi e provide. 

(4) 
5 

b. Such rate, fare or charge shall become effective on the fifteenth 

day from the date of the first advertisement thereof as hereinabove 

provided, unless within such period 

(1) a member of the Industry shall file an appeal to the 

Administrator to r eview the action of the Code Authority; or 

(2) an interested party other than a member of the Industry 

files a protest with the Administrator that such rate, fare or 

charge has been improperly established. 

c. In case of .-uch an appeal or protest, the Code Authority shall 

give immediate notice thereof to all members of the Industry 

directly affected by such rate, fare or charge, and such rate, fare or 

charge hall become effective only upon approval of the Administrator as hereinabove provided. Any party so appealing or protesting shall submit to the Administrator the cost data, or other 

information on which said appeal or protest is based, and the 

Administrator shall immediately submit copies of the same to the 

Code Authority. If the Administrator shall find, after such notice 

and hearing as he may prescribe, 

(1) on appeal by a member of the Industry, that the Code 

Authority acted pursuant to the provisions of this Section in 

establishing such rate, fare or charge; or 

(2) on protest filed by any interested party other than a 

member of the Industry, that the rate, fare or charge has been 

properly established; or 

(3) that any modification of any such minimum rate, fare 

or charge appealed from or protested will carry out the provisions of this Section; 

he may approve such minimum rate, fare or charge or appropriate 

modification thereof which shall become effective when he shall 

specify. 

d. The Code Authority may at any time on its own initiative or 

on complaint filed, lower the minimum rate, fare or charge estab- lished under the provisions of this Section. The denial of any such 

com.plaint or the refusal to act thereon within fifteen (15) days shall 

be subject to review by the Administrator. 

e. The application of the provisions of this Section shall be subject 

to rules and regulations with respect thereto issued by the Administrator, and the Administrator after three (3) days' notice to the 

Code Authority, may, in his discretion, cancel or suspend any rate, 

fare or charge so fixed at any time. 

Appro,·ed Code No. 66. Amendment No. 1. 

Registry No. 1741-2-03. 

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