Approved Code No. 162 Registry No. 141 -25 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

DOMESTIC FREIGHT 

FORWARDING INDUSTRY 

AS APPROVED ON DECEMBER 18, 1933 

BY 

PRESIDENT ROOSEVELT 

-5 

U.S. DEft~TO~Y 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

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WASHINGTON : 1933 

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Approved Code No. 162 

CODE OF FAIR COMPETITION 

FOR THE 

DOMESTIC FREIGHT FORWARDING INDUSTRY, 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly n1ade, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

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

Fair Competition for the Domestic Freight Forwarding Industry, 

and hearings having been held thereon, and the Administrator having rendered his report containing an analysis of the said Code of 

Fair Competition, together with his recommendations and findings 

with respect thereto, and the Administrator having £ound that the 

said code of fair competition complies in all respects with the pertinent provisions of title I of said act, and that the requirements of 

clauses (1) and (2) of subsection (a) of section 3 of said act have 

been met: 

NO\V, THEREFORE, I, Franklin D. Roosevelt, President of 

the United States, pursuant to the authority vested in me by title 

I of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt the findings and approve the report and 

recommendations of the Administrator and do order that the said 

code of fair competition be and it is hereby approved. 

Approval recommended : 

HUGH s. JOHNSON' 

Adn1inistrator. 

THE \iVHITE HousE, 

D ecembe1· 18, 1933. 

FRANKLIN D. ROOSEVELT. 

26901-33 (175) 
DECEMBER 6, 1933. 

The PnESIDENT, 

The White House. 

Srn: This is n. report on the Code of Fair Competition for the 

Domestic Freight Forwarding Industry of the United States, on 

which the hearing was conducted in Washington on the 17th of 

October 1933, in accordance with the provisions of the National 

Industrial Recovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

Maximum hours for employees are established as follows: General 

office clerks-forty ( 40) hours in any one week. Local station 

and/ or platform clerks or laborers-forty-eight ( 48) hours per week, 

averaged over any six ( 6) weeks' period. No employee is permitted 

to work more than twelve (12) days in any fourteen (14) day period. 

No freight-house laborer to be paid at less than at the rate of forty 

( 40¢) cents per hour. Office boys, messengers, sorting or pulling 

clerks to be paid at the rate of two dollars ($2.00) per day of eight 

(8) hours. Junior Clerks to be paid at the rate of two dollars and 

fifty cents ($2.50) per day of eight (8) hours. Senior Clerks to be 

paid not less than at the rate of three dollars and seventy-five cents 

($3.75) per day of eight (8) hours. All employees who work in 

excess of ten ( 10) hours in any one day shall be paid time and one 

half their normal hourly rate of pay for such excess. 

Employment of any person under sixteen ( lG) years of age and 

any one under eighteen years ( 18) of age at occupations hazardous 

in nature or dangerous to health is prohibited. 

ECONOl\IIC EFFECT OF THE CODE 

The Domestic Freight Forwarding Industry represents an exception in the present depression in that it has added to its personnel 

and expanded steadily from year to year. Its personnel increased 

about fifty-five (55% ) percent from 192D to July 1933. There was 

a further increase in personnel of eighteen and four tenths (18.4% ) 

percent and an increase in pay roll of about fourteen and seven 

tenths (14.7%) percent following compliance with the President's 

Reemployment Agreement. As a result of this Code, these gains 

will be consolidated and further improved. 

Through the provisions of this Code the Industry has an opportunity to control the uneconomic practices and abuses previously 

indulged in by the irresponsible units to the disadvantage of the substantial concerns in the Industry. The standardizing and publishing of rates will remove the unfairness to shippers by reason of the 

past IJi'actice of competitors giving more favorable transportation 

costs through serret bargaining for lower rates. 

(176) 
177 

FIKDINGS 

The Administrator fin ds that: 

(a) The Code as recommended com plies in all rc pects with the 

pertinent provisions of Title I of the Act including, '1\ithout limitation, subsection (a) of Section 7, and subsection (b) of Section 10 

thereof· and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein, and is truly representative of the 

Domestic Freight Forwarding Indu try; and that 

(c) The Code as reconunended is not designed to promote monopolies or to eliminate or oppress small enterprises and \\ill not operate 

to discriminate against them, and will tend to effectuate the policy of 

Title I of the National Industrial Recovery Act. 

From evidence adduced during this hearing and from recommendations and reports of the various Advisory Boards, it is believed 

that this Code as now proposed and revised is satisfactory to this 

Industry, labor, the public, and this Administration. It is recommended, therefore, that this Code, as herewith submitted, be 

approved. 

Respectfully, 

HuGHS. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOil THE 

DOMESTIC FREIGHT FORWARDING INDUSTRY 

ARTICLE I - PURPOSES 

To effectuate the policies of Title I of the National I ndustrial 

Recovery Act the following provisions are established as a Code 

of Fair Competition for the Domestic Freight Forwarding Industry, and shall be the standard of fair competition for this Industry and shall be binding upon every member thereof. 

ARTICLE II- DEFINITIONS 

As used herein : 

(a) The term "President" means the President of the United 

States. 

(b) The terms "Act" and "Administrator" mean, respectively, the 

National Industrittl Recovery Act ::md the Administrator of Title I 

of said Act. 

(c) The term " Industry :' means and includes the business of consolidating, assembling, and domestic forwarding of freight. 

(d) The tern1 "employee " includes any pe1~ on engaged in the 

Indu try in any capacity receiving compensation for his services 

irrespective of the nature or method of payment of such compen- sation. 

(e) The term "employer " includes anyone by whom any such em- ployee is compensated or employed. 

(f) The term "member of the Industry'> includes anyone engaged in the Industry either as an employer or on his own behalf. 

(g) The term" member of the Code" includes any member of the 

Industry who shall expressly assent to this Code. 

(h) The term" effective date" means the tenth day after this Code 

shall have been approved by the President of the United States. 

( i) Population for the purposes of this Code shall be determined 

by reference to the 1930 Federal Census. 

ARTICLE III-HouRs 

1. No local station andj or platform clerk or laborer shall be per~ 

mitted to work in excess of an average of forty-eight ( 48) hours 

per week during any six ( 6) week period. 

2. No general office clerks shall be permitted to work in excess 

of forty ( 40) hours in any one week. 

3. No employee shall be permitted to work more th an twelve (12) 

days in any fourteen (14) clay period. 

(178) 
179 

4. No employer shall knowingly engage any employee for any time 

which when totaled with that already performed with another employer, or employers, exceed the maximum permitted he1:ein. 

5. Any employer who does the -work o:f an employee subJect to the 

provisions o:f this Article shall be subject to the provisions o:f this 

Code as to hours o:f labor. 

6. The_ provisions o:f this Article shall not apply to persons 

employed as solicitors, or employed in an executive or managerial 

capacity who earn not les than thirty dollar ($30.00) per week, in 

cities o:f less than 250,000 population, or in cities o:f 250,000 population or more, not less than thirty-five dollars ($35.00) per week. 

ARTICLE IV-WAGES 

1. No freight house laborer shall be paid at less than the rate of 

forty ( 40) cents per hour. , 

2. No office boy, messenger, sorting or pulling clerk shall be paid 

less than at the rate o:f two dollars ($2.00) per day of eight (8) hours. 

3. No Junior Clerk shall be paid less than at the ratB of two dollars 

and fifty cents ($2.50) per day of eight (8) hours. 

4. No Senior Clerk shall be paid less than at the rate of three 

dollars and seventy-five cents ($3·.75) per day of eight (8) hours. 

5. All employoos who work more than ten (10) hours in any one 

(1) day shall be paid one ancl one half (l:Y2 ) times their normal 

hourly rate of pay :for all time worked in excess of ten (10) hours 

in any one (1) day. 

6. This Article establishes a m1nm1um rate of pay which shall 

apply irrespective o:f whether an employee is actually compensated 

on a time-rate, piece-work, or other basis. 

7. Unless an equitable adjustment of all wages above minimum 

has been made since June 16, 1933, there shall be such an equitable 

adjustment, and to that end, within thirty (30) days from the 

approval of this Code, the Code Authority shall submit :for the 

approval of the Administrator a proposal for adjustment in wages 

above the minimum. Upon approval by the Administrator, after 

such hearing as he may prescribe> such proposal shall become binding as a part of this Code; provided, however, in no event shall 

hourly rates of pay be reduced. 

8. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed on light work at a 

wage of not less than 80% of the minimum established by this Code, 

if the employer obtains from the State Authority designated by the 

United States Department of Labor a certificate authorizing his 

employment at such wages and for such hours as shall be sbted in 

the certificate. Each employer shall file with the Code Authority 

a list of all such persons employed by him. The number of such 

employees of any employer shall not exceed 5% of the total employees 

of any such employer. 

ARTICLE V-GENERAL LAnon Pnovrsro~ s 

1. No person under sixteen (1G) .·ears of aO"e shall b~ employed in 

the Industry. No person under eighteen (18) years of age shall be 
180 

employed at operations or occupations which are hazardous in nature 

or dangerous to health. The Code Authority shall submit to the 

Administrator within thirty (30) days a list of such operatio:qs or 

occupations. In any State an employer shall be deemed to have 

complied with this provision as to age if he shall have on file a 

certificate or permit duly issued by the Authority in such State 

empowered to issue employment or age certificates or permits showing that the employee is of the required age. •H 

2. In compliance with Section 7 (a) of the Act it is provided: 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

(b) 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 organization 

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. 

3. No e1nployer shall reclassify employees or duties of occupations performed for the purpose of defeating the provisions of the 

Act or of this Code. 

4. No provisions in this Code shall supersede any State or Federal 

law which imposes more stringent requirements on employers as to 

age of employees, wages, hours of work, or as to safety, health, 

sanitary, or general working conditions, or insurance, or fire protection, than are imposed by this Code. 

5. All employers shall post complete copies of this Code in conspicuous places accessible to employees. 

6. Female employees performing substantially the same work as 

male employees shall receive the same r ate of pay as male employees. 

ARTICLE VI- ORGANIZATION 

CODE A UTHORI'.rY 

A Code Authority is hereby constituted to cooperate with the 

Administrator in the administration of this Code. 1. (a) The Board of Directors of the- Domestic Freight Forwarding 

Association, as a body, shall constitute the Code Authority, but shall 

not number more than ten (10) voting members to which may be 

added, if the Administrator so determines, an additional voting 

representative from the members of the Industry who are not 

members of the Domestic Freight Forwarding Association, the 

method of whose selection shall be subject to the approval of the 

Administrator. 

(b) In addition to member hip as above provided, there may 

be not more than three (3) membc.rs, without vote, to be appointed 

by the Administrator. Such member are to be appointed :for terms 

of from six ( 6) months to one ( 1) year. The terms of such members shall be so arranged that they do not expire at the same time. 
181 

2. The Domestic Freight Forwarding Association and any other 

association directly or indirectly partici I ating in the selection or 

activities of the Code Authority hall (a) impoc.:8 no inequitable 

restrictions on membership, and (b) submit to the Administrator 

true copies of articles of association, bylaws, regulations, and any 

an1endments when made thereto, together with uch other informa- tion as to member hip, organization and activities as the Adminis- trator may deem necessary to effectuate the purposes of the Act. 

3. In order that the Code Authority shall at all times be truly 

representative of the Industry and in other re pects comply with 

the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the 

Code Authority is not truly representative or does not in other 

respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Code 

Authority, or any sub-Code Authority. 

4. Members of the Industry shall be entitled to participate in 

and share the btmefits of the activitie of the Code Authority and to 

participate in the selection of the member or members thereof by as- senting to and complying with the requirements of this Code and 

sustaining their reasonable share of the expenses of its administration. Such reasonable share of the expenses of the administration 

shall be determined by the Code Authority, subject to review by the 

Admini trator, on the basis of volume of business and/or such other 

factors as may be deemed equitable. 

5. Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpo e. Nor shall any 

member of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent, or employee of the 

Code Authority. Nor shall any member of the Code Authority be 

liable to anyone for any action or omis ion to act under the Code, except for his o\\n willful misfeasance or nonfeasance. 

6. No decision of the Code Authority shall be made without the 

favorable vote of seventy percent (70%) of the members of the 

Code Authority. 

PO\V.ERS A D DUTIES OF THE CODE AUTHORITY 

7. The Code Authority shall have the following powers and duties 

to the extent permitted by the Act, ubject to the right of the 

Admini trator, on review, to disapprove any action taken by the 

Code Authority. 

(a) To adopt bylaws and rules and regulations for it procedure 

and for the administration and enforcement of the Code, in accordance with the powers herein granted and to submit the same to 

the Administrator for his approval, together with true copies of 

any amendments or additions when made thereto, minutes of meetings when held, and such other information as to its activities as 

the Aclmini trator may deem necessary to effect the purposes of 

the Act. 

(b) To obtain from members of the Industry reports in resnect to 

wages, hours of labor, conditions of employment, and other I{iatters 
182 

pertinent thereto in order that the President may be kept informed 

with respect to the observance of the Code, and to make such 

r eport available to the Administrator. 

(c) To make recommendations to the Administrator for modifications of the Code. (d) To receive complaints of violations of this Code, make 

investigations thereof, provide hearings thereon and adjust such 

com plaints, and bring to the attention of the AdministratdP :fbr 

prosecution, recommendations, and information relative to unadjusted 

violations. 

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

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

herein and to pay such trade associations and agencies the cost 

thereof, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that such 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. 

(f) If the Administrator shall so require, to create as an agency 

of the Code Authority, a Joint Industnal Relations 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 

Industry. 

(g) To cooperate with th~ Administrator in regulating the use 

of the N.R.A. Insignia solely by those employers who have agreed 

to, and are complying with, this Code. 

(h) To establish or designate an agency on planning and fair 

practice which shall cooperate with the Code Authority in developing fair inter and intra trade practices, and the stabilization of 

employment. 

(i) The Code Authority shall, as soon as possible after the effective date hereof, appoint three (3) individuals who shall, jointly 

with three (3) individuals appointed by any other Transportation 

Code Authority, hear and determine, subject to the approval of the 

Administrator, any question which may be referred to them by either 

the Code Authority of this Code or any other Transportation Code 

Authority for adjudication. In cas~ such joint committee fails or 

refuses to decide within ten (10) days anv question submitted, the 

matter shall be referred to the Administrator for final disposition. 

8. In addition to the information required to be submitted to the 

Code Authority as set forth in this Article there shall be furnished 

to Government agencies such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) 

of the National Industrial Recovery Act. 

ARTICLE VII-RATES AND TARIFFS 

1. The Code Authority shall appoint committees on rates, tariffs, 

charges, and terminal rules and regulations for each freight service 

movement. Each committee shall have full authority to investigate 

into and make recommendations to the Code Authority for the par-
183 

ticular freight service movement. Each of uch committees shall 

consist of representative of each membor of the Industry who conducts business in all railroad freight association territories of the 

United States and of representatives of each other member of the 

Industry who operates in the particular freight service movement 

under review. 

If the Code Authority shall find that such rates and tariff are 

fait and reasonable and in the interest of fair competition and are 

not more than the rates and tariffs of common carriers, prescribed 

by or on file with the Interstate Commerce Commission for the same 

or similar services, then such approved rates and tariffs shall become 

binding on all members of the Industry on their ·effective date. Due 

opportunity for a hearing, however, shall be afforded by the Code 

Authority to dissenting members of the Code, who, prior to the effective date of the recommended rate, tariff or charge, file protest 

thereon with the Code Authority. All decisions and findings of the Code Authority in the matter 

of rates, tariffs, charges, and terminal rules and regulations relating 

thereto, shall be subject to the right of the Administrator on his own 

motion or on complaint filed, to review, suspend or cancel any such 

decision or finding. 

}_._RTICLE VIII-REGIS'I'RATION 

Each member of the Industry shall within thirty (30) clays aftBr 

the approval of this Code register with the Code. Authority a list 

of his officers, places of bu iness, and freight service movements, and 

submit evidence of compliance with this Code and such other conditions as shall hereafter be apprmed by the President after such 

notice and hearing as he shall pre cribe. After the said expiration 

of the said thirty (30) days, the conduct of such domestic freight 

forwarding busin ss without such registration with the Code Authority, is declared an unfair competitive practice and in violation 

of this Code. 

ARTICLE IX-U:xFAIR TRADE PRACTICES 

1. For all purpo es of the Code the acts described in this Article. 

shall con titute unfair practices. Any n1ember of the Industry who 

shall directly, or indirectly, through any officer, employee, agent, or 

repres ntative, knowingly use, en1ploy, or permit to be employed, any 

of such unfair practices shall be guilty of a violation of the Code. 

(a) Asses ing or collecting less than the rates or charges approved 

under the terms of Article VII of this Code; or granting or allowing 

any rebate or conce sion and/or using any subterfuge to defeat such 

approved tariffs. 

(b) Contracting, either in writing or orally, with any customer 

for the transporting of merchandi e, or giving service in relation to 

the same, for any given period of time. 

(c) Willful misrepresentation or defamation of another member's 

services, methods, personal or financial standing. 

(d) Giving, permitting to be given, or offering to give, anything 

of value for the purpose of influencing or rewarding the action of any 
lllllllllllil~i ~I ~ij 1111' ~ fill~ I ill ~~~~~I~ I IIIIi 111111111 

3 1262 08850 2868 

184 

employee or agent of another in relation to the business o:f the employer of such employee or the principal of such agent without the 

knowledge of such employer or principal. 

(e) Maliciously attempting to induce the breach of an existing contract between a competitor and his employees; or willfully interfering .with or obstructing performance of such contractual duties or 

services. 

2. \Vithin t en (10) days from the effective date hereof, the Code 

Authority shall prepare and submit to the Administr ator, a list of 

specific unf.air competitive practices within the I ndustry. Upon approval thereof by the President after such notice and hearing thereon 

as the Administrator may speci:fy, such unfair competitive pr actices 

so listed shall become parts of this Code. 

ARTICLE X-GENERAL 

1. No provision of this Code shall be so applied as to permit 

monopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate against small enterprises. 

2. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the pr ovisions of subsection (b) of Section 10 of the Act, from time to time 

to cancel or modify any order, approval, license, rule, or regulation 

issued tmder Title I of said Act, and specifically, but without limitation, to the right of the President to cancel or modi:fy his approval 

of this Code or any conditions imposed by him upon his approval 

thereof. 

3. This ·code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circumstances, such 

modification to be based upon application to the Administrator 

and such notice and hearing as he shall specify, and to become effective on approval of the President. 

4. This Code shall continue in effect for the period provided in the 

Act, unless sooner term.inated in accordance with the law in such case 

made and provided. When so terminated all obligations and liabilities under the Code shall cease. 

5. This Code shall become effective upon the tenth day after this 

Code shall have been approved by the P resident of the United 

States. 

Approved Code No. 162. 

Registry No. 1411-25. 

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