Approved Code No. 553 Regl!;try No. 1728-31 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

RESTAURANT TRADE IN 

THE TERRITORY OF HAWAII 

AS APPROVED ON MARCH 5, 1935 

WE DO OUR ,ARf 

UN IV. OP· FL lll. 

. ------ 0- -- "" "; -

_...:. __ · 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

f 

Por sale by the Superintendent of Documents, Washineton, D. C. - - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Governm~nt 

Printing Office, Washington, D. C., and by district offices of the Bureau of Foreign 

e.nd Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

Buffalo, N. Y.: Chamber of Commerce Building. 

Charleston, S. C. : Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, 'l'ex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N. Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse~· 

Seattle. Wash.: 809 FedE>ral Office Building. 
Approved Code No. 553 

CODE OF FAIR COMPETITION 

FOR THE 

RESTAURANT TRADE IN THE TERRITORY OF 

I-lAWAII 

As Approved on March 5, 1935 

ORDER 

ConE oF FAIR CoMPETITION FOR THE REST A unANT TRADE IN THE 

TERRITORY OF HAw All 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Restaurant Trade in the Territory of 

Hawaii, and hearings having been duly held thereon, and the Deputy Administrator having rendered his report, and the annexed 

report of the National Industrial Recovery Board on said Code, 

containing findings with respect thereto, having been made and 

llirected to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise 

does hereby incorporate by reference the annexed report of the 

National Industrial Recovery Board, and does hereby concur in and 

adopt the findings of fact made therein, and does further find that 

the said Code complies in all respects with the pertinent provisions 

and will promote the policy and purpo es of said Title of said Act, 

and does hereby order that said Code of Fair Competition for the 

Restaurant Trade in the Territory of Hawaii, annexed hereto, be, 

and it is hereby approved, subject to the following conditions: 

(1) That all member of the Restaurant Trade as defined in the 

said Code under Article II, Sections 1 and 2 thereof, to the extent 

that they are engaging in the said trade irt the Territory of Hawaii, 

shall be exempt from the provisions of the Code of Fair Competition 

for the Restaurant Indu try, a approved on February 16, 1934, 

provided, howeYer, that the exemption hereinabove granted does not 

extend to operators of "hotel restaurants." 

(2) Thi Code shall become effective thirty (30) lays from the 

date hereof unles good cause to the contrary is shown to the N a11D42o·----1603-3D----35 (153 ) 
154 

tional Indu trial Recovery Board within twenty-five (25) days and 

the National Industrial Recovery Board issues a subsequent order 

staying or modifying this Order of Approval. 

NATIONAL INDUSTRIAL RECOVERY BoARD, 

By ,V. A. HARRIMAN, Ad1ninistrative Officer. 

Approval recommended: 

ARMIN w. RILEY, 

Division Administrator. 

WASHINGTON, D. c., 

March 5, 1935. 
, 

REPORT TO THE PRESIDENT 

The P REsiDENT, 

T he White House. Srn: This is a report on the Code of Fair Competition for the 

Restaurant Trade in the Territory of l-Iawaii. This Code was sponsored by the Hawaiian Territorial Restaurant Association. The 

Public H earing on this Code was held in Honolulu, T. H., on l\farch 

30, 1934. Adjourned Public Hearings were held April 2, 1034 an l 

April11, 1934. There are approximately three hundred se' enty-five 

(375) firms and approximately one thousand (1,000) employees 

in this Trade in H awaii. The capital invested is slightly less than 

One l\1illion Dollars ($1,000,000) and the annual trade is slightly 

less than Three Million Dollars ($3,000,000). The trade is dominated by the Orientals. There are few la rge firms. 

HOURS .AKD WAGES 

The Code provides for a maximum fifty-four (54) 'hour week 

for males and forty-eight ( 48) hour for females. Employees are 

not permitted more than six ( 6) days in any one week. Watchmen 

and guards are permitted to work fifty -six (56) hours per week but 

may not work more than thirteen (13) days in any fourteen (14) 

day period. Chief cooks who receive not less than Ejghteen Dollars 

($18.00) per week are permitted to work seYen (7) days per week 

but not more than fifty-six (56) hours per week. :Maintenance 

employees are exempted from the maximum hours but must be 

paid one and one-third (11j3 ) times their normal rate for all hours 

in excess of the basic hour maximum permitted other employees. 

In cases of emergency threatening. damage or destruction to the 

property of a restaurant establishment, maintenance employees, 

watchmen, and guards may be permitted to work in excess of s.ix 

( 6) days per week. Executives receiving not less than Twentyfive Dollars ($25.00) per week are permitte l to work in excess of 

the maximum hours. In restaurants employing twenty (20) work· 

ers or less the number of workers who may be permitted to work 

overtime is restricted to one worker for every five ( 5) employed. 

In restarirants employing more than twenty (20) workers the number allowed to work overtime is re tricted to one worker for everv 

five ( 5) for the first twenty (20) workers, and to one worker for 

every eight (8) above twenty (20) . 

Non-service employees must be paid not les than Thirteen and 

50/ 100 Dollars ($13.50) for a fifty-four (54) hour week in cities over 

25,000 and not less than T welve and 50/ 100 Dollars ($12.50) per week 

in cities between 10,000 and 25,000 and not less than Eleven and 

50/ 100 Dollars ($11.50) per week in places with a population less 

than 10,000. Service employees must be paid not less than Twelve 

(155) 
156 

Dollars ($12.00) for a fifty-four (54) hour week in cities over 25,000 

and not less than Eleven Dollars ($11.00) per week in cities between 

10,000 and 25,000, and not less than Ten Dollars ($10.00) per week 

in places with a population of less than 10,000. 

The Code prohibits child labor. 

ECONOMIC EFFECT OF THE CODE 

The proposed Code will result in an average weekly increase in 

weekly wages of about thirty percent (30%) and an increase in employment of about twenty-five percent (2'5%). 

FINDINGS 

The Deputy Administrator for Hawaii in a letter addressed to 

the National Industrial Recovery Board has made a clear and detailed report of the present economic condition of this Trade. He 

has made lengthy and detailed findings of fact in regard to said 

Trade. The said report of the Deputy Administrator for Hawaii 

with the findings contained therein is incorporated by reference into 

this report. The National Industrial Recovery Board does hereby 

expressly concur in and adopt the findings contained in the said report of the Deputy Administrator for H awaii. 

For these rea ons, this Code has been approved. 

For the National Industrial Recovery Board : 

MARCH 5, 1935. 

w. A. H ARRIMAN, 

Adndnistrative Officer. 
CODE OF FAIR COl\IIPETITION FOR THE RESTAURANT 

TRADE IN THE TERRITORY OF HA \VAil 

ARTICLE I-PURPO ES 

To effectuate the policies of Title I of the National Indu trial Recovery Act, this Code is approved as a Code of Fair Competition for 

the Restaurant Trade, and its provisions shall be the standards of 

fair competition for such Trade and be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term " Restaw·ant Trade " us used herein shall 

mean the business of operating, directly or indirectly or through 

any subdivision, a restaurant, as hereinafter defined in Section 2. 

SECTION 2. The term "Restaurant" as used herein shall include 

any establishment which, for compensation, prepares and offers food 

for consumption either on any of its premises, or by catering and 

banquet service, or by box lunch service, or by curb service, and 

customarily serves at least ten (10) people per day. This includes, 

without limitation, concessionaires, wherever located, clubs, and 

employee re taurants, but excludes chool, hospital and hotel re8-

taurants. 

SECTION 3. The t~rm "Food" as used herein hall mean nutriti' e 

material intended for human consumption, in solid and/or liquid 

form, whether simple, mixed, compounded, cooked, uncooked, or 

otherwise prepared, excluding however, preparations sold or produced primarily for their vitamin content, or medicinal or quasimedicinal preparations. 

SECTION 4. The term "Member of the Trade " as used herein shall 

include, but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the Trade, 

either as an employer or on his or its own behalf. 

SECTION 5. The term "Ernployee" as used herein shall include any 

and all persons engaged in the Trade, however compensated, except 

a member of the Trade. 

SECTION 6. The term "Employer" as used herein shall include 

anyone by whom such employee is compensated or employed. 

SECTION 7. The term "Curb E1nployee ' as used herein shall mean 

employees engaged exclusively as outside alesmen serving curb 

customers. SEcTION 8. "Employee Restaurants., are tho e conducted in connection with another bu iness exclusively for the convenience and/ or 

financial accommodation of the employees of that business. 

SECTION 9. The term ·' llf aintenance Employee " as used herein 

shall mean an employee essential to the upkeep and/ or preservation 

of the premi es and property of a restaurant. 

1 See paragraph 2 (1) of order appr oving this Code. 

(157) 
158 

SECTION 10. The terms " TV atchmen " and " Guards " as used 

herein shall mean employees engaged in watching and safeguarding 

the premises and property of a restaurant. 

SECTION 11. (a) The term "Service Employee " as used herein 

shall include waiters and waitresses engaged in table and/or room 

service, and hat and coat checkers, whose duties consist chiefly in 

rendering direct service to customers and who regularly receive 

monetary recognition from such customers for the services rendered; 

provided however, that if the classification of any employee or group 

of employees as service or non-service employees should operate to 

discriminate unjustly between employees of the same restaurant 

establishment or between restaurant establishments of the same class 

operating under similar conditions, the National Industrial Recovery Board on application by such affected parties, and on recommendation of the Territorial Code Authority, may, after such notice 

and hearing as it may deem necessary, make such reclassification as 

justice may require. 

(b) Employees who are engaged in serving the public from behind 

the counter shall not be classified as service employees. 

SECTION 12. The term " Executive " as used herein shall mean an 

employee responsible for the management of the business or a recognized subdivision thereof. 

SECTION 13. The term " Part-time En~ployee" as used herein shall 

mean an employee who works less than the maximum work week 

prescribed herein. 

SECTION 14. The term "Oounty" as used herein means the City 

and County of Honolulu as defined in Section 1717 of the Revised 

L aws of Hawaii 1925, and each of the counties of the Territory of 

Hawaii as defined in Section 1575 of the Revised Laws of Hawaii 

1925. 

SECTION 15. The terms "President ", and "Act", as used herein 

shall mean, respectively, the President of the United States and 

Title I of theN ational Industrial Recovery Act. 

SECTION 16. Population for the purposes of this Code shall be 

determined by reference to the Fifteenth Census of the United States 

(U. S. Department of Commerce, Bureau of the Census, 1930). 

ARTICLE III-HouRs 

SECTION 1. Basic Working Days.-No employee shall be permitted 

to work more than six (6) days in any one week, except as hereinafter otherwise provided. 

SECTION 2. Basic Working H owrs.-N o male employee shall be 

permitted to work more than fifty-four (54) hours in any one week, 

except as provided in Section 4 of this Article. No female employee 

shall be permitted to work more than forty-eight ( 48) hours in any 

one week, except as provided in Section 4 of this Article. 

SECTION 3. E1nploy.ment by Several Employers.-No employer 

shall knowingly permit any employee to work for any time which, 

when added to the time spent at work for another employer or employers, exceeds the maximum permitted herein. 

SECTION 4. Exceptions to M axi1nu1n Hours or Pe1·iods of Labor. 
159 

(a) 1Vatchm.en and Gwuds.-\Yatdunen and guards shall not be 

permitted to v,·ork more than thirteen ( 1::3) days in any fourteen 

(14) c1ay period and not more than fifty-~ix (56) hours per week. 

(b) Jiaintenance Employu::s.-The maximum hour::> of v1·ork pre- ~crib~(l in this Article shall not apply to maint nance employee.._, , prondecl, however, that such employees ~hall be pa1cl at not le::,s than 

n1e and one-third times their normal rate for all hours vi·orked in 

exce .... ~ of the maximum permittell their respectiYe sexes under Sec- tion ~ of this Article. 

(c) E xecutives.-Subject to the conditions set forth in Section 5 

of thi ~ Article~ executives r egularly receiving not less than T-..Yentyfi-..-e Dollars ($25.00) pel' \\eek, exclusiYe of any charges for meal 

may be permitted to work in excess of the maximum hours of work 

prescribed in this Article. 

(d) Clzief OpoJ.:s.- Chief cooks "\Yho are employees receiYing not 

less than E ighteen Dollars ($18.00) per "\Teek, exclusiYe of any 

harges for meals, may be permitted to -work seYen (7) days per 

week but not more than fifty -six (56) hours per 1reek. 

(e) En2ergency.-In cases of emergency requiring the specific attention of a particular executiYe, maintenance employee, watchman 

and/or guard, or thr eatening damage or destruction to the property 

of a r estaurant establishment~ such executiYe receiving the ~alary 

hereinabo\e cifi ed~ maintenance employee, -n·atchman ancljor 

guard may he permitted to work in excess of six ( 6) days per 1\eek. ECTIO~ 5. Limitation l/ pon N umber of P ersons lVodcing [Tm'e -

·:Y-tricted H otws.-N at-withstanding the provisions of the foregoing 

sect on~ of this Article, and r egardless of the number of er~on 

other\\ise pen11itted to work unrestricted hours, the total number of 

-.,yorkers in any restaurant (whether such workers are executives, 

proprietors, partners, persons not receiyjng monetary \\·ages, or 

thers) who may be permitted to work unrestricted hours, :;.hall not 

xceed the following ratio : 

(a) In restaurants comprised of twenty (20) workers or less, the 

total number of 1\orkers 1\ho may be permitted to work unrestricted 

huurs (not including the \Yorkers specifi€cl in Section 4 (a) of this 

A1ticle) shall not exceed one (1) -n·orker for e-.;-ery ( 5) ''orkers or 

fraction thereof. (b) I n establishments comprised of more thnn twenty (20) -n·orkers, 

the total number of '\Yorkers (not including those 1\orkers specified in 

Section 4 (a) of this Article) ~ha ll not exceed one (1) \Yorker for 

eYery fi1e ( 5) v.'orkers for the first twenty ( 20) workers, and shall 

not exceed one (1) worker for en·ry eight (8) workers aboYe h venty 

(20) . 

SEcTrcx 6. Spread of 1Vorking Hours and Numb er of Shifts P er 

Day.-:Not n1ore than fourteen (14) consecutiYe hours shall elapse 

behYeen the beginning and the termination of the hours v;orked by 

any employee in any t\\enty-four (2±) hour period and not more than 

t\\-o (2) inten-·als off duty shall be permitted during the course o:f 

ouch fourteen (14) consecutiYe hour period of employment. Time 

out for meals within the r~teen (14) hour spread but not to exceed 

a total of one (1) hour. shall not constitute an inten·al ofi duty 

bet\\een split shifts. 

119420 °----l603-39----B5----2 
160 . 

Su.-TI JX 1. Basic 'chedule of lVa.ges.-(a) Except as hereinafter 

otlwnYi" pro\·i 1e 1. cmrloyees shall be paid each week at not less 

tbcu t h minimum rate of \Y RO'E'S hereinbelow set forth for a fiftyf our ( :1:1:) hour "'ork week. 

Population of cities or places 

OYer ~3,GQO ___ __________ ____ __ ____ _________ _____ ____ _ ------- --- -- ---- -- __ __ -- -- -- 10.000 f 0 2:i,OOO _______ ____ ____ ____ __ __ ______ ___ __ ___ ________ ______________ _____ _ _ ~ tb· n !0,000 _____ __________ __ _______ ____ ___ ___ ______ __ __ _______ • __ ___ _______ _ 

Nonservice Service employees employees 

$13.50 

12. 50 

11.50 

$12. 00 

11. 00 

10.00 

(b) ('urb Employees.-The minimum wages pres ribecl in paragraph (a) of Section 1 of this Article £01· service employees shall 

apply to curb employees. T he Territorial Cocle Authority may, howeYer, nppoint a joint committee of employers of curb employees and 

employer ·who do not employ curb employees to investig ate thn effect 

of t hl' prm·i ions of this subsection upon the entire Rest aurant I nelm-try. which c mmittee may submit t o the National Industrial Re-

('0\" ·ry Board recommendations based upon its investigation and 

~tndy. fo r its f urther con ·iderHtion of this proYision or for the modiii{'atlon thereof. The National I nd ustrial Recovery Boa r d mDy, after 

snch I!Otl c nnd hearing as it may prescribe, approve such recommenclab on~ , nncl ur on .. nch approval by t he National I ndustrial Recoyer.Y Board, such recommendations shall constitute a part of and 

han• the same forcp and effect as the provi ·ions of t his Code. 

( c·) Cllm·ge fm' Unif onns.-\:Vhere an employee is required by his 

Pmployer to wear a uniform, no deductions from the minimum wages 

prescribed in this Article shall be made by such employer, except 

that. nch uniform may, by agr ement between such employee an l his 

cmploynr, b obtained and sold by the employer to such employee 

at a pric of not to exceed the actual cost to the employer, ubject 

to the follmYing conc1iti ns : 

( 1) tha t in the case of a female employee such price shall not 

e -~C rd F i Ye Dollars ($5.00 ) per uniform ; 

(2) that in the ca ·e of a malo employee such price shall not exceed FiYe Dollars ($5.00) per uniform, unless snch uniform is of 

--uch .-tnndard 1esign that it may b u eel by such ma le empl yee in 

performing the same \YOrk for other em plo 'ers in the a me city o .. · 

1lac , in '\\'hich ca ·e snch price shall not exceed T wenty Dollars 

(:20.00) 1 er nniform; 

(3) that no C'mployer ha ll permit any of his agents or employees 

or engn; or cons1 ire wit h any third pnrty, to pursue any cour e of 

actior1 110t p rmitt cl f'Uch employers by thi~ Section· 

( 4) that in those casos \d1--l'C uniforms are pla·chase 1, mploye s 

:.;hall hr<Ye the Dpti' n to pnrrhn." such uni:forn · outright, or to 

reimburse the employer at the rate of ten percent (10C}1 ) of the 

prier I <'l' IY<.'e ~; except th at aft"r notice to tho Territoria l Code 

Authority, . ettiug forth pertinent fac t ; and npproYal by t he Territorial Code Aut hority, subject to review by t h r-. National In Iustrial RecoYery Doa rcl, other rates may be agr ed upon and authoriz d. I:f, upon termination of employment, such purchase price 
161 

~;hall not have been paid in full, such employee shalL in the absence 

of a contrary agreement by such employee, have the option to pay 

the unpaid balance clue forthwith and retain the uniform, or to 

·urrender such uniform to the employer, and thereby cancel the 

obligation to make any further payments therefor. In lien of such 

purchase or in the case of uniforms requiring laundering, the employee may at his option rent such uniform fron1 the employer or 

ompensate the employer for laundry ~e n·ic es, at a rate of not t 

e::s:ceed the actual cost to the employer of laundering ancl in no 

eYent to e::s:ceed twenty-five cents (25¢) for each laundering. 

( cl) No reductions from the minimum wages prescribed in this 

Article, other than those specifically permitted in this Article or 

as may be required by law, shall be made fo r any purposes whntver. 

SEC'I'ION 2. Limitations on 1r age Reductians.-N o employer shall 

make any reduction in the full-time weekly earnings or the honrly 

earnings of any employee below those existing for the four ·week c· 

ending June 16, 1933. 

SEcTrox 3. Ghm·ges.- (a) Charge fo7' j}J eals.-\Vhere it has been 

mutually agreed between an employee and an employer that such 

employee shall receiYe meals as a part of the Temuneration of such 

employee, a sum of not to exceed twenty-five cents (25¢) for each 

meal furnished to such employee, but not to exceed a total of Three 

Dollars ($3.00) per week, may be deducted from the wages of such 

employee. In no case shall an employee receive less cash per •xeek 

because of this charge than that employee received on June 16, 1933, 

for performing the same work. 

(b) OhaJ•gc for Lodging.-No employer shall make any deductions from the minimum wages prescribed in this Article for lodging except under the follo11ing terms and conditions: 

(1) \Vhere lodging has been furnished to employees by established custom in the restaurant establishment or by reason of pe- culiar location r equiring that employees be lodged. 

(2) No deductions shall exceed the sum of Two and 50/100 Dcllars 

( $2.50) per "\Yeek. 

(3) No employee shall rrcciYc less cash per week because of thi. 

charge than that employee received on June 16, 1933 for performinn 

the same 11orlc 

{-±) No deductions shall be made e::s:cept by mutual agreement 

between employer and employee. 

( 5) No deductions shall be n1ade unless prior thereto, application 

has been made to the Territorinl Code Authority, setting forth the 

pertinent facts specified in paragraphs 1 to 4 inclusive of this subsection, and :1ppron.ll of the Territorial Code Authority, subject to 

re·riew by the National Industrial RecoYery Board, has been obtained. 

SECTIO~~ 4 . .LlJinin-unn 1Vage Established.-This Article cst[lblishes a. minimum rate of pay irrespectiYe of the basis on -which an 

employee is compen.sated. 

SEcTIOX 5. Pad-thne Em.ployees.-Part-time employees shall be 

paid not less than an hourly rate proportion3.te to the rates pre-

;cribed in the foregoing sections of this Article in accordance w .ith 

hours worked. 
.-~ 

SEUTIO~ 6. H andicapp( r1 lrol'kn·s.-A er~o n whose ear ning capacity is limited becau:-;e of age. physical or mental handi ap ~ or other 

infirmity, may be employed on Jjght \York at a \Yage below the minimum established by this Code if the E>mployer obtains from the authority designaterl by the r nite<l States D ep art ment of L abor a 

certificate auth orizing hi:-; employment at snch \Yages and f or such 

h ours as ~hall be stated in the certifica t e. E ach emnloyer sh all file 

monthly with the Territorial Code Authority a list d all such perf:ons employed by h im, ~how in g the \Y age:- paid tu, and the maximum 

h ours of wor k for such employee. 

A RT I CLE Y-GEX EHAL L ABOR P non siOKf 

S ECTIOX 1. Ool7cctl1·c Bw·gui7tin.r;.- (a ) E mployees shall haYe th 

righ t t o organize an <l qa rgain collecti l~r through representatin?f' 

of their o1vn ch oo::;ing, and all be free f rom interfer ence, r estraint, 

or coer cion of oye ~ of labor, or their agents, in the designation 

of such r epresentatiYes or in self-organization or in other concerted 

actiYities for the purpose of co ll ec ~ bargaining or other mutual 

nid or protection. 

(b ) No employee and n(J one !::eeking employment shall be r equired as a condition of employment to join any company union or t 

refrain f rom joining. org:.1nizing. or a~:-;ist ng n labor 'or ganization 

of his own ch oosing. 

(c) Employers ;hall comply with the maximum hours of labor, 

1ninimum rates of pay, and other conditions of employment, ap -

p r oYecl or prescribed by the Pre::-ident. ' 

- ECTION 2. Safety and Health.- (a) EYery employer shall p r oYiclc 

for the safety and health of employees during t he hours and at th 

l)b<.:es of their emr)lo-vment. ~ ' (b) Standards for ~afety an<-1 health shall be submitted by the T er1·itorial Cocle Auth01 ity to the X ational Industrial RecoYery Board 

within six (G) mmd.h~ after the effective elate of this Code. 

SECTIOX :3 . Child Labo1'.- Xo per::-on unl1er eighteen (18) :vears o-f 

nge shall be employed in the Trade in hazardous occupations. K o 

person under sixteen (lG) year::, of a~e shall be employed in th 

Trade in any capacity. ~\.ny employer shall be deemed t o haYe 

<.:omplie(1 \Yith thi~. proYision as to r.~·e if he shall lut\·e on file a certificate or permit, duly signed by the ~\.n hority in the T erritory 

empowered to issue emplo~·ment or age certificates or permits sho\Ying that the employee ic.; of the required age. 

SEcTrox ±. T eJ·rdm·ia7 Lau's.- X o pro i~ion in this Code shall 

supersede an r Ten·itorial or Fecleralln\\' \Yhich impoEes on employers 

more stringent re<}niremenb a~ to age of employees: \\ages, hour:--. of 

'tork, or as to safety. health, ~anitary or general working conclition.J, 

or insurance, or fire prot~ction ~ than ~re imposed by t his Code. 

SECTIOK 5. Posting.-~\.11 employers ~hall post and keep posted 

copies of this Code in con:"picuons p laces ac~essible t o all employee..,. 

E\·ery member of the Trade shall comply 1nth all r ules and r egula -

tions relatiYe to the pn~ting of prm·i:--ions of Codes of F nir Competition which may from time t o time be prescribed by the Nation al 

Industrial RecoYery Born·d. 
163 

ARTICLE VI-ORGANIZATION, PowERS AND DunEs OF THE CoDE 

AuTHORITY 

SECTION 1. (a) \Vithin sixty (60) days after the effective date 

of this Code, there shall be constituted a Territorial Code Authority 

consisting of seven (7) members to be elected by members of the 

Trade at a meeting or meetings called by the Temporary Territorial 

Code Authority, upon ten (10) days' notice sent by registered mail 

to all known members of the Trade who may vote either in person, 

by proxy or by mail. Each member of the Trade shall be entitled 

to one vote. The members of the Territorial Code Authority first 

elected shall serve until their successors are elected. During such 

sixty-day period, until such Territorial Code Authority has been so 

constituted, the committee of the association sponsoring this Code 

shall constitute the Temporary Territorial Code Authority. The 

members of the Territorial Code Authority shall be elec~ed in the 

following manner : 

Two (2) shall be elected by the members of the Honolulu Restaurant Th-fen's Association on the Island of Oahu; 

One (1) shall be elected by the members of the Maui Restaurant 

Men's Association on the Island of .Maui; 

One ( 1) shall be elected by the members of the Kauai Restaurant 

Men's Association on the Island of Kauai; 

One ( 1) shall be elected by the members of the Hawaii Restaurant 

Men's Association on the Island of Hawaii; and 

Two (2) shall be elected by members of the Trade, not n1embers 

of the Associations, or failing uch election, such members shall be 

appointed by the National Industrial Recovery Board from a list 

submitted by non-members of the above named Associations, or, 

if such a list is not submitted, theN ational Industrial Recovery Board 

shall appoint from members of the Trade who are not members of 

the Associations, two (2) members of the Territorial Code Authority. 

'Vhere a vacancy occurs in the membership of the Territorial 

Code Authority, such vacancy shall be filled by the majority vote 

of the remaining Code Authority members, provided that such vacancy is filled by a representative from the same group as was the 

vacating member. 

(b) In addition to membership as above provided, there may be 

three (3) members, without vote, to be known as Administration 

Members, to be appointed by the National Industrial Recovery 

Board to serve for such terms as it may specify. 

SECTION 2. Each trade or industrial association directly or indirectly participating in the selection or activities of the Territorial 

Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the National Industrial Recovery Board 

true copies of its articles of association, by-laws, regulations, and 

any amendments when made thereto, together with such other information as to membership, organization, and activities as theN ational 

Industrial Recovery Board may deem necessary to effectuate the 

purposes of the Act. 

SECTION 3. In order that the Territorial Code Authority shall at 

all times be truly representative of the Trade and in other respects 

comply with the provisions of the Act, the National Industrial 

Recovery Board may prescribe such hearings as it may deem proper; 
164 

and thereafter if it shall find that the Territorial Code Authority 

i not truly representative or does not in other respects comply with 

the proYisions of the Act, may require an appropriate modification 

of the Territorial Code Authority. 

SEcTION 4. Nothing contained in this Code shall constitute the 

members of the Territorial Code Authority partners for any purpose. 

Nor shall any member of the Territorial Code Authority be liable 

in any manner to anyone for any act of any other member, officer 

agent or employee of the Territorial Code Authority. Nor shari 

any member of the Territorial Code Authority, exercising reasonable 

diligence in the conduct of his duties hereunder).. be liable to anyone 

f or any action or omission to act under this l/ode, except for his 

own wilful malfeasance or nonfeasance. 

SECTION 5. If the National Industrial Recovery Board shall at 

any time determine that any action of the Territorial Code Authority or any agency thereof may be unfair or unjust or contrary 

to the public interest7 the National Industrial Recovery Board may 

require that such actwn be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration 

by such Territorial Code Authority or agency pending final action 'which shall not be effective unless-the National Industrial Recovery 

Board approves or unless it shall fail to disapprove after thirty 

; (30) days' notice to it of intention to proceed with such action 

in its original or modified form. 

SECTION 6. (a) Subordinate to the Territorial Code Authority 

established in Section 1 of this Article, there shall be con tituted 

:County Code Authorities for those counties of the Territory, where 

in the opinion of the National Industrial Recovery Board the 

Territorial Code Authority will require assistance of a regional 

group in its duties of investigation, fact-finding, education, and research. :Members of the County Code Authorities shall be elected 

in a manner satisfactory to the National Industrial Recovery Board, 

by the Trade at large in the county where they are to serve and 

shall be truly representative of the Trade in that county. 

(b) In addition to membership on the County Code Authority 

as above provided, there may be one (1) member, without vote, 

to be known as the Administration member, to be appointed by the 

National Indu trial Recovery Board to serve for such term as it 

may specify. SECTION 7. Powers and Duties.-Subject to such rules and regulations as may be issued by the National Industrial Recovery 

Board, the Territorial Code Authority shall have the following 

powers and duties, in addition to those authorized by other provisions of this Code : 

( a) To insure the execution of the provisions of this Code and 

to provide for the compliance of the Trade with the provisions of 

the Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

(c) To obtain from members of the Trade such information and 

reports as are required for the administration of the Code. In addition to information required to be submitted to the Territorial Code 

Authority, members of the Trade subject to this Cole shall furnish 

buch statistical information as the National Industrial Recovery 
165 

Board may deem necessary for the purpo es recited in S ction 3 (a) 

of the Act to such Federal and Territorial agencies as it may de ig- nate; provided that nothing in this Code shall relieve any member 

of the Trade of any existing obligations to furnish reports to any 

government agency. No individual report shall be di clo ed to 

any other member of the Trade or any other party except to such 

other governn1ental agencies as may be directed by the National 

Indu trial Recovery Board. 

(d) To u e such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided :for 

herein, provided that nothing herein shall relieve the Territorial 

Code Authority of its duties or responsibilities under this Code and 

that such trade asso"iations and agencies shall at all times be subject to and comply with the provisions hereof. 

(e) To make recommendations to the National Indu trial Recm ery Board :for the coordination of the administration of this 

Code and such other codes, if any, as may be related to or affect 

n1embers of the Trade. 

(:f) (1) I t being :found necessary in order to support the administration of this Code and to main'-ain the standards of :fair competition established hereunder and to effectuate the policy of the Act, the 

Territorial Code Authority is authorized: 

a. To incur such reasonable obligations as are necessary and proper 

:for the :foregoing purpo e and to meet such obligations out of :funrls 

which may be raised as hereinafter provided and which shall be held 

in tru t :for the purposes of the Code; 

b. To submit to the National Industrial Recovery Board :for its 

approval, subject to such notice and opportunity to be heard as it 

may deem neces ary (1) an itemized budget of its estimated expenses 

for the foregoing purpose , and (2) an equitable ba is upon which 

the :funds necessary to support such budget shall be contributed by 

members o:f the Trade; 

c. After uch budget and basis of contribution have been approved 

by the National Industrial Recovery Board, to determine and obtain 

equitable contribution as above set forth by all members of the Trade, 

and to that end, if necessary, to institute legal proceedings therefor in 

its own name. 

(2) Each member of the Trade shall pay his or its equitable 

contribution to the expenses of the maintenance of the Territorial 

Code Authority, determined as hereinabove provided, and subject to 

rules and regulations pertaining thereto i sued by the National 

Industrial Recovery Board. Only members of the Trade complying 

with the Code and contributing to the expenses of its administration 

as hereinabove provided, (unless duly exempted from making such 

contributionsJ) shall be entitled to participate in the selection o:f 

members of tl1e Territorial Code Authority or to receive the benefits 

of any of its voluntary activities or to make use of any emblem or 

insignia of the National Recovery Administration. 

(3) The Territorial Code Authority shall neither incur nor pay 

any obligation sub tantially in excess of the amount thereof, as 

estimated in its approved budget, and shall in no event exceed the 

total amount contained in the approved budget, except upon approval of the National Industrial Recovery Board, and no subse-
166 

quent budget shall contain any deficiency it€m for expenditures in 

excess of prior budget estimates except those which the National 

Industrial Recovery Board shall have so approved. 

(g) To recommend to the National Industrial Recovery Board 

any action or measures deemed advisable, including further fair 

trade practice provisions to govern members of the Trade in their 

relations with each other or with other trades/industries; measures 

for industrial plalllling, and stabilization of employment; and 

including modifications of this Code which shall become effective as 

part hereof upon approval by the National Industrial Recovery 

Board after such notice and hearing as it may specify. 

(h) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

Codes as may he related to the Trade for the purpose of formulating fair trade practices to govern the relationships between employers 

under this Code and under such other codes to the end that such 

fair trade practices may be proposed to the National Industrial 

Recovery Board as amendments to this Code and such other codes. 

(i) To provide appropriate facilities for arbitration, and subject 

to the approval of the National Industrial Recovery Board to prescribe rules of procedure and rules to effect compliance with awards 

and determinations. 

(j) It shall create as an independent agency of the Territorial 

Code Authority a Joint Industrial Board consisting of an equal 

number of representatives of employers and employees, and an impartial chairman elected by the members of the Board, to deal with 

all matters in the Code relating to hours, wages, and general labor 

provisions. The designated employees' representatives shall be truly 

representative of the employees of the Trade and chosen by such 

employees. The membership of this Board shall be approved by the 

National Industrial Recovery Board. 

ARTICLE VII-UNFAIR TRADE PRACTICES 

SECTION 1. Misrepresentation.-No member of the Trade shall use 

advertising, whether printed, radio, display, or bill-of-fare, or any 

other form of publicity which is inaccurate in any material particular or misrepresents food, merchandise, service, credit terms, values, 

or policies, and no member of the Trade shall use advertising and/ or 

selling methods which tend to deceive or mislead customers or prospective customers. 

SECTION 2. Free, Deals.-N o member of the Trade shall offer or 

give a free deal. The term "free deal'' as used in this paragraph 

means a gift of free food, money, presents, advertising space, or 

specimen meal, as an inducement to secure business; provided, however, that this section shall not be construed to prohibit free and 

general distribution of articles for advertising purposes. 

SECTION 3. Prizes and Pre1niu1ns.-N o member of the Trade shall 

offer any prize or premium or gift in pursuance of a plan which 

involves fraud or deception or lottery. 

SECTION 4. Defam . .ation.-N o member of the Trade shall defame 

a competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by other 
167 

false representation, or by falsely disparaging the grade or quality 

of his goods. 

SECTION 5. Breach of Oontract.-No member of the Industry shall 

maliciously induce or attempt to· induce, by any false or deceptive 

means what oever, the breach of an exi ting contract between a competitor and his source of supply or between a competitor and his 

customer; or interfere with or obstruct the performance of any such 

contractual r elations with the purpose and effect of hampering, 

injuring or embarrassing competitors in their business. 

SECTION 6. Paymznts for Privilege of W orking.-N o employer 

shall accept, nor shall he knowingly permit any of his employees 

to accept money or gifts of any kind from an employee or prospective employee for the privilege of working or for any other advantage. 

ARTICLE VIII-MomFIC.A TION 

SE TION 1. This Code and all the provisions thereof are expre ly 

made subj ect to the right of the President, in accordance with the 

provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, licen e, rule, or regulation issued under Title I of said Act. 

SECTION 2. Such of the provisions of this Code as are not required 

to be include~ herein by the Act may, with the approval of the National Industrial Recovery Board, be modified or eliminated in such 

manner as may be indicated by the needs of the public, by changes 

in circumstances, or by experience. All the provisions of this Code, 

unles so mo lified or eliminated, shall remain in effect until June 16, 

1935. 

ARTICLE IX-PRICE INCRE SFS 

\Vhereas the policy of the Act to increase real purcha ing power 

will be made more difficult of consummation if prices of good and 

serYices increa e as rapidly as wages, it is recognized that price increases except such as may be required to meet individual co t should 

be delayed, and when made, such incr eases should so far a possible, 

be limited to actual additional increases in the seller's costs. 

ARTICLE X - M:oNOPOLIEs, ETc. 

No provision of this Code shall be so applied as to permit n1onopolies or monopolistic practices, or to eliminate, oppress, or discriminate 

against small enterpri es. 

ARTICLE XI-EFFECTIVE DATE 

This Code hall become effective thirty (30) days after its approval 

by the National Industrial Recovery Board. 

Approved Code No. 553. 

Registry No. 1728-31. 

0 


-

UNIVERSITY OF FLORIDA 

1111111111111111111111111111111111111111111111111111111111111111 

3 1262 08582 8571 

.. ~ . . . 

---~ -

-- .