Approved Code No. 24-Amendment No. 6 Registry No. 702-45 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

BITUMINOUS COAL INDUSTRY 

AS APPROVED ON JANUARY 25, 1935 

WE DO OUR PART 

U.S. DEPOB'iTO~Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

For sale by the Superintendent of Documents, Washington, D. C. • • • • • • • • • Price 6 cent.s 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D. 0., and by district offices of the Bureau of 

Foreign and Domestic Commerce. · 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

Buffa lo, 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. 

Da llas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

J acksonville, 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 Federal Office Building. 
Approved Code No. 24-Amendment No. 6 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BITUMINOUS COAL INDUSTRY 

As Approved on January 25, 1935 

ORDER 

APPROVING AMEND:UENT OF CODE OF FAIR COMPETITION FOR THE 

BITUMINOUS COAL INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I, of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of an amendment 

to the Code of Fair Competition for the Bituminous Coal Industry: 

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

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

Executive Order No. 6859, and otherwise; does find that said amendment and the Code as constituted after being amended comply in a11 

respects with the pertinent provisions and will promote the policy 

and purposes of said Title of said Act, and does hereby order that 

said amendment be and it is hereby approved to become effective 

immediately and remain effective only until and including April 30, 

1935, and that the previous approval of said Code is hereby amended 

to include an approval of said Code in its entirety as amended. 

NATIONAL INDUSTRIAL RECOVERY BOARD, 

By W. A. HARRIMAN, Administrative Offiaer. 

Approval recommended: 

w. P. ELLIS, 

Dimis-ion Adminwtrcd(YT". 

WASHINGTON, D. c., 

January '25, 1935. 

111342°-1461>-lll-35 (1)' 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

Tlve White House. 

Srn: An application has been duly made pursuant to and in full 

compliance with the provisions of the National Industrial Recovery 

Act, for an amendment to the Code of Fair Competition for the 

Bitu.mious Coal Industry, submitted by a Sub-Divisional Code Authority of the Industry and an amendment submitted by the National 

Recovery Administration for consideration at the public hearing, 

held in Washington, D. C., J anua.ry 4, 1935. 

At this hearing, modifications of such proposed amendment were 

submitted by the National Bituminous Coal Industrial Board, an 

agency created and established under the Code for the purpose, 

among others, of considering and making recommendations to the 

President as to any amendments of the Code. Pursuant to the hearing and to information and considerations properly before us, as 

provided in the published notice of hearing, these amendments have 

been revised. Also as a result of this hearing an amendment to 

Article VI, Section 1 was approved January 8, 1935. 

The existing provisions of Article VI, Sections 2, 3 and 4 and 

.Article VII, Section 2 of the Code for said Industry are entirely inadequate in view of the necessity for changing and improving the 

methods and procedure in establishing fair market prices. An extreme emergency confronts the Industry occasioned by the custom 

of making forward contracts, under which the price for delivery of 

coal might jeopardize the hour and wage provisions of the Code, resulting in serious labor disturbances to the detriment of the public. 

It is, ther efore, evident that the proposed amendment of Article VI, 

Sections 2, 3 and 4 and of Article VII, Section 2 of said Code, as 

modified by the National Industrial Recovery Board, as provided in 

the notice for public hearing thereon, will assist in improving the 

existing inadequate provisions. 

FINDINGS 

The Acting Deputy Administrator .in his final report to us on the 

amendment to the Code of Fair Competition for the Bituminous 

Coal Industry having found as herein set forth and on the basis of 

all proceedings in this matter : 

We find that pending such further order as the National Industrial 

Recovery Board may enter thereon; 

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

designed to promote the policies and purpo es of Title I of the ~ ational Industrial Recovery Act including the removal of obstructions to the free flow of interstate and foreign commerce which tend 

(2) 
3 

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 

sanctions 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 ( except as may be tern porarily required) by increasing the 

consumption of industrial and agricultural product by incr~asing 

purchasing power, by reducing and relieving unemployment, by improving standards of labor, and otherwise by rehabilitating industry 

and conserving natural resources. 

(b) The Code as amended complies in all respects with the pertinent 

provisions of said Title of said Act, including without limitation 

Subsection (a) of Section 3, Subsection (a) of Section 7 and Subsection (b) of Section 10 thereof. 

( c) The Code empowers the National Bituminous Coal Industrial 

Board to consider and to make recommendations to the President as 

to any amendments of this Code. It also empowers any Sub-Divisional Code Authority to propose amendments on behalf of the 

Industry as a whole after submission to any other Code Authority 

affected thereby (which shall include the Divisional Code Authority). 

( d) The amendn1ent and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

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

and will not eliminate or oppress small enterprises and will not operate 

to discriminate against them. 

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

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

amendment. 

In view of the emergency and conditions existing, said amendment, 

as modified, is accordingly approved to become effective immediately 

and for a temporary period to and including April 30, 1935, during 

which period further consideration will be given to the problems 

involved. 

For the National Industrial Recovery Board: 

JANUARY 25, 1935. 

w. A. HARRIMAN, 

Administrative Officer.· 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE BITU~ITNOUS COAL INDUSTRY 

Modify Article VI by inserting to appear in said Article VI as 

a preamble thereto and immediately to precede Section 1 thereof, 

the following : 

For the purpo e of establishing and maintaining fair practices so 

as to protect the public in its right to buy coal at reasonable prices; 

to pron.de and maintain an adequate wage structure for employees; 

and to protect the producers in their right to produce coal and sell 

it in the markets, while observing the purposes of the National 

Industrial Recovery ~ct, it is provided as follows: 

and by modifying Sections 2, 3 and 4 of said Article VI in such 

manner that the preamble to and Sections 1, 2, 3 and 4 of said Article 

VI shall read as follows: 

AnTIOLE VI-UNFAIR PRACTICES 

For the purpo e of establishing and maintaining fair practices 

so as to protect the public in its right to buy coal at reasonable 

prices; to provide and maintain an adequate wage stn1cture for 

employees; and to protect the producers in their right to produce 

coal and sell it in the m.arkets, while observing the purposes of the 

National Industrial Recovery Act, it is provided as follows: 

SECTION 1. The making of a contract to sell or off er to sell coal, 

whether for immediate or future delivery, at a price below the fair 

market price at the date of such contract or offer (regardless of 

the dates sp2cified for the making of deliveries), or any sale or 

delivery of coal ( other than pursuant to contract made in accordance 

with the fon~going) below the fair market price thereof at the time 

of deli very, determined as hereinafter provided, is hereby declared 

to be an unfair competitive practice and in violation of this Code. 

Such fair market price shall be determined and established as hereinaft€r provided, and it shall be proper in determining such fair 

market price to consider the purposes of the National Industrial 

Recovery Act, the miniinum rates of pay herein established, the 

furnishing of employment for labor and the competition with other 

coal , fuel , and forms of energy or heat production. (Amendment 

Number Five, January 8) 1935.) 

SECTION 2 (a) . The fair market prices of coal of any kind, grade 

or size, referred to in the next preceding section, subject to the power 

of review hereinafter stated, shall be-

( 1) The minimum prices for the various kinds, grades and sizes 

in the various consuming markets which may be established for 

future application by a marketing agency or by marketing agencies, 

of whatever form or howsoever constituted now existing or here-

(4) 
5 

a:fter created or organized, acting for producers of at least twothirds of the commercial tonnage of any coal district or group of 

districts, such minimum prices to be effective when and as announced as provided in paragraph (£) of this Section. 

(2) The minimum pnces for the various kinds, grades and sizes 

in the various consuming market~, which may be established for 

future application by the respective Code Authorities hereinafter 

set up, for· their respective areas where no uch marketing agency 

exists, such minimum prices to be effective when announced as provided in paragraph ( f) of this Section. 

(b) In determining such fair market prices, marketing agencies 

and Code Authorities shall take into consideration, among other 

factors, the purposes of the National Industrial Recovery Act, the 

minimum rates of pay herein established, the furnishing of employ- ment for labor, competition with other coals, fuels and forms of 

energy or heat production, the customs, requirements and needs of 

the buying and consuming public for various kinds, grades and sizes 

e,f coal and the necessity for giving to consumers reasonable opportunity to buy and to producers r easonable opportunity to sell t11eir 

coal in usual and normal markets. Furthermore, in order to determine such fair market prices, the marketing agencies and Code Authorities shall classify all coals, applying all factors usually considered in connection with physical structure and chemical analy is 

and their effect upon the salability and use value of such coals, and 

with due regard for the foregoing provisions, shall so price coals 

as to afford producers reasonable opportunity to sell the coal in 

competition with other coals, fuels and forms of energy or heat production, and to this end the marketing agencies and Code Authorities shall give due regard to the prices made by competing districts, 

but it shall be their purpose, while making competitive market prices, 

not to make dumping prices in any area of consumption. 

( c) The term "marketing agency " as used in this Code shall 

include any trade association of coal producers complying with the 

requirements of a marketing agency and exercising the functions 

thereof as provided herein. 

( d) Where a marketing agency functioning in any district or 

group of districts acts as selling agent for producers of at least twothirds of the commercial tonnage, the Code Authority in announcing 

the prices of coal of producers out.side of such agency in such district 

or group of districts shall utilize and follow the practices and methods of classification, and the classifications, used by such agency and 

shall adopt the same prices for the respective classes of coal as those 

fixed by such agency. 

( e) The fair market prices established for future application under the provisions of Section 2 (a) ( 1) shall be reported to said 

Code Authorities by any such marketing agencies in such manner as 

may be required by such Authorities. 

( f) The fair market price or prices of bituminous coal established 

as herein provided shall become effective, subject to appeal, suspension and modification as hereinafter provided, when the same shall be 

approved by the Presidential Member of the Code Authority ( acting 

under the direction of the Administrator), and when published as 

provided herein. In his approval the Presidential Member may per-
6 

mit a reduction or increase in said price or prices by action of said 

marketing agencies or Code Authorities within the limits which he 

may prescribe. Said prices shall be published by the Code Authority 

when so e tabli hed and approved by the Presidential Member and 

from time to time thereafter as may be determined by the Code Authority or required by the Administrator, and in any event when any 

change is made therein. Simultaneously with such publication said 

:fair market price or prices shall be transmitted by the Code Authority making or giving effect to and publishing any change in price, to 

the National Recovery Administrator for his review and subsequent 

action. 

(g) Each Code Authority shall, at all times, provide and keep 

open an office during business hours to which any coal producer in 

its district or districts and any representative of the Administrator 

may apply for information with respect to classifications and prices. SEorrON 3. In order to prevent injustices among or between producers, any producer shall be granted a hearing upon written complaint, and the marketing agency or Code Authority which establishes fair market prices for the coals of such producer shall hold 

said hearing within five days ( unless extension of time is consented 

to by such producer) after the receipt of said complaint, directly 

or through such agency as it may establish. In such complaint, the 

producer shall set out the grounds of his complaint, whether he is 

objecting to the prices fixed on his coal, and whether he desires an 

increase or decrease in his prices. He shall further set out whether 

he is objecting to prices of other producers in the same district or 

on account of prices in competing districts. The marketing agency 

or Code Authority, shall, to the extent reflected in the evidence, take 

into consideration, in addition to the factors set out in this article, 

the market demand for the class of coal of the producer, the relative 

operating time at the mines of the producer, as compared with 

that of the mines of other producers in the same and competing 

districts, their past production history, as well as the quality of the 

coal and the comparative delivered value thereof to the consumer, 

and such other pertinent facts as may be presented, and shall make 

its decision within five days after the hearing, unless extension of 

time is consented to by such producer. A record shall be made of 

all the facts and evidence presented to the marketing agency or 

Code Authority, as the case may be, at such hearing, and of the 

decision rendered thereon. Such producer shall have the right of 

appeal to an impartial Board of Arbitration which shall be set up 

by such agency or Code Authority, as hereinafter provided; and the 

decision of such Board shall be binding upon the producer and shall 

constitute the decision of such agency or Code Authority. 

SECTION 4. In order to establish fair competitive price relationships and practices between marketing agencies and/or Code Authorities representing different Divisions or Subdivisions, such agen- cies and Code Authorities are hereby authorized and directed to 

meet and confer with each other and endeavor to agree upon a basis 

of fair competitive prices and practices relating thereto as between 

such Divisions and/or Subdivisions. They shall take into consideration the same factors as are considered by Code Authorities as between the producers within the Divisions or Subdivisions as , here-
7 

inbefore set out. Any such agr eements made between marketing 

agencies and/ or Code Authorities r epresenting competing Divisions 

and/or Subdivisions shall be ubmitted to the Administrator for 

approval or disapproval and shall become effective within ten days 

after receipt thereof by him unless disapproved as being against 

the interest of the public. Such agencies and/ or Code Authorities 

shall endeavor to agree between themselves, subject to the approval 

of the Administrator, on rules of procedure, notices of meetings, 

and other necessary order of business for such meetings looking to 

such agreements, notices of all of which shall be furnished to the_ Administrator or his representative, who shall have the opportunity 

to be present at such meetings. In default of an agreement as to 

such rules and other procedural matter approved by him, the 

Administrator may prescribe the ame. 

If any such agency or Code Authority shall be of the opinion that 

any producer or producers represented by it is adversely affected by 

any failure to reach such agreement, or that any prices or practices 

relating thereto, heretofore or hereafter established in a different 

Division or Subdivision, are unfair competitive prices or practices 

relating thereto and no such agreement in respect thereof has been 

reached, the dissatisfied agency or Code Authority shall have the 

right of appeal to the National Coal Board of Arbitration, as hereinafter provided. 

ARTICLE VII-ADMINISTRATION 

Change the designation of Section 2 to Sub-section (a) of Section 

2 and add two additional sub-sections to said Section to be designated 

(b) and ( c), as follows : 

(b) Every marketing agency and Code Authority establishing 

prices as herein provided shall immediately set up and maintain a 

permanent impartial Board of Arbitration for the marketing agency, 

Division or Subdivision for which it acts, to which any producer 

represented by such agency or Code Authority may appeal from any 

decision thereof as to his classification or price or the practice complained of; provided, however, that any marketing agency or Code 

Authority may elect to join with any other marketing agency or Code 

Authority agreeing thereto, with the approval of the Administrator, 

to set up such Board for their joint use for the purposes of this 

Article. Such Board shall consist of not more than five members, 

who shall not be connected directly or indirectly with the coal industry during the time they serve as members of such Board. Such 

Board shall prescribe rules of procedure and keep a record of its 

proceedings. Any producer filing an appeal shall do so in writing, 

accompanied by evidence of service of a copy thereof upon such Code 

Authority or marketing agency. Such appeal shall be heard within 

five days of the date of filing unless the producer taking the appeal 

shall consent to extension of such time. Such Board in reaching its 

decision on any such controversy shall be guided, as the basis of such 

decision, by the principles upon which fair competitive market prices 

and practices relating thereto are to be established as hereinbefore 

provided in Article VI; and such Board shall decide the matters at 

issue within ten days after the hearing and the decision of such Board 
8 

shall be final and binding on the producer and shall constitute the 

decision of such Code Authority or marketing agency. If the decision of the Board favors the complainant, the marketino- agency or 

Code Authority shall revise the price or practice compl~ined of in 

accordance with such decision, or in the case of failure of the said 

Board to act within such ten days or such extended period as may be 

consented to by the complainant, such agency or Code Authority shall 

likewise revise such price or practice complained of as if the decision 

had been in favor of the complainant. 

( c) In order to settle disputes and controversies between or among 

marketing agencies or Code Authorities representing different Divisions or Subdivisions with respect to fair competitive prices and 

practices relating thereto, there shall be created an impartial National 

Coal Board of Arbitration of five members, who shall not be connected directly or indirectly with the coal industry during the time 

they serve as members of such Board. The nine members of the 

National Bituminous Coal Industrial Board designated by the Divisional Code Authorities shall constitute electors by majority vote to 

elect, subject to the approval of the Administrator, and fix the salaries of the members of said National Coal Board of Arbitration and 

fill any vacancies thereon. The members of the National Coal Board 

of Arbitration shall be paid salaries at the rate of not to exceed 

$10,000, each per year and shall serve for a term of two years, subject 

to removal by affirmative vote of at least six of said electors. Their 

salaries and traveling expenses and all necessary office expenses shall 

be paid by Divisional Code Authorities, contributing on a tonnage 

basis. Complaints to such Board shall be in writing, setting forth 

the reasons therefor, and may be made only by a marketing agency 

or by a Code Authority. The Board shall make all necessary rules 

and regulations for its operation and procedure and shall keep a 

record of its actions and 1,roceedings. Said Board shall hear all 

complaints within ten days ( or such additional time as may be consented to by complainant) after receipt of formal complaint in writing, accompanied by evidence satisfactory to the Board that copy 

thereof has been served upon the respondent marketing agency or 

Code Authority. Copies of the complaints shall also be furnished 

to other interested marketing agencies and Code Authorities and to 

the Administrator in accordance with rules of the Board. The 

Board shall decide all matters submitted to it within ten days after 

the hearing unless the time is extended with consent of the complainant and its action shall, subject to changes made under the proYisions of the Code, be binding upon the parties for a period of not 

less than ninety days unless the Board in its discretion shall consent 

to review its action, and tliereafter until new matter is submitted by 

the complainant sufficient in the opinion of the Board to cause it to 

change its decision. In settling and determining the disputes and 

controversies between Divisions and Subdivisions above referred to. said National Coal Board of Arbitration shall be governed by the 

same principles and standards, facts and factors as herein prescribed 

for the marketing agencies, Code Authorities, and Boards of Arbitra- tion in fixing prices and determining disputes respecting prices and 

practices relating thereto. The decision of the Board shall be trans-
9 

mitted to the Administrator for approval or disapproval and hall 

become effective within t en days after its receipt by him unles disapproved as being again t the interest of the public. Pending hearing on and decision of uch complaint the prices or practices complained of may by order of the Board and on such conditions as it 

may prescribe be suspended or modified. 

Appropriate publication shall be made by the Code Authority 

giving effect to any change in price required by such decision. 

Approved Code No. 24-Amendment No. i. 

Registry No. 702-45. 

0 
• 
• 
• 

UNIVER S ITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIII IIIIII IIII Ill Ill 111111111111111 

3 1262 08850 2777