Business Library 

CLASS _____ _ 

BOOK ____________ _ 


OFFICE OF NATIONAL RECOVERY ADMINISTRA1ION 

. ;~· . 

DIVISION OF REVIEW 

HIS'fORY OF GENERAL EXEMPTIONS 

By 

Lucius Q. C. Lamar 

WORt< MA'l'ElUALS NO. 75 

CODE l-IISTORIES UNIT 

MARCH, 1936 
... 
9845 

OF~nCE OF NATIONAL RECOVERY iillMii:HSTRATI01T 

niVISION OF REVIEW 

HISTORY OF GENERAL EXEMPTIONS 

:By 

Lucius Q. . C. Lamar 

CODE HISTORIES UNIT 

MARCH, 1936 
G U D 

y • P. A 
This histoiJr of General Exemptions was pr epar ed by Mr . 

Lucius Q, . C. Lamar, Exemption Grouo Supervisor of the Code 

Histories Unit , Mr . Robert C. Aye rs in charge . 

The history , the operation , and the effects of thP Executive 

and Administrative Orders which created general P ion have 

been treated in this work. The \.Tenernl Ex mp ions" 

here used means c.'r:lptions which -. no- limi ed i~ their 

a c ion to onrticJ.lur L..0\.4 • ork -l. .1.als No . 74 on 

IIAdnn.ni strati , ... and egal Asl!-' ~c"ts of Steys , Exemptions and 

E ceptio ..,, C ~ .Amendments, Conditional Orders of Approvalff 

J.tains allied material . 

The exhibits referred to in the text are not here reproduced. 

They mE'.y be found in the NRI\ files under the title NRA Studies 

Special Exhibits, Wo r k Materials No . 75 . 

At the back of this report will be found a brief statement 

of the studies undertaken by the Division of Review. 

March 25 , 1936 

. /b 

9845 

1. C. Marshall , 

Director, Division of Review 

-i-

SummAry 

General Exemptions: 

A. Exempticn to members not pBrticipAting in 

establishin code. 

Executive Order cf July 15, 1933, No. 6205-B 

B. Co-ouerAtives. 

Executive Grder of October 23, 1933, No . 6355 

C. To wns under 2500 uouulAtion. 

Executive Grder of Octobe r 23, 1933, Nc . 6054 

D. Service Trades. 

Executive Order of i1:a .r 27, 1934 , lJo. 6723 

E. Exemp tions AS to Sales to Hosn itAls. 

ArnninistrAtive Grder of JAnuarv 23, 1934, 

Order No. X-4 And othArs 

F. HAndical'Jued Vorkers . 

Executive Grder of :?ebruary 17, 1934, 

No. 6606-F 

G. Homew0r'ce rs. 

Executive Grder of MAy 15, 1934 , No. 6711-A 

H. Apprentices. 

Executive Crd.er of June 27, 1934 , To, 6750-C 

I. Sheltered ·7orlcsho:os. 

AdministrAtive Grde r of Harch 3, 193L1., 

Grder No. X-9 And othe rs 

J. Government Contracts 

Executive Grde r of l·li c:nch 14, 1934., No. 6646 

9845 -ii-

_F_a p:.e 

1 

3 

9 

13 

16 

20 

25 

29 

33 

42 

44 

K. Exemption frO!'l Asse ssnents. 

Admi nistrative urde r of APril 14, 1934, 

No . X- 20 AnQ others 

L. _e rritoriAl Possessions. 

Administr::J tive Grder cf Ju.l y ;; , 1934, 1Jc. X-60 

And others 

EXHIBITS 

47 

(The se exhibits are not r eproduced in rn imeo granhed form. Tho y 

e~re on file in bound form in NRA Studies Spec ial Exhih.i ts, 

Work i:Aterials l'Jo. 75) 

1-A Memo from Mn :colm Sha rp r e origin of Executive 

C;rder 6215- B 

1-B ·,-emo from B. Lotwin re ori in of ?.:xecutive 

Grde r 6205-B 

2 Executive Grder G205-B - Granting exem~tions 

to non-pArticipating membe rs 

3 Meno from 1. J. Jernerd re Inte r pretation of 

Zxecutive Grde r 6205-B 

4 ,, emo from L. J. Berna r d re Inte rpretation of 

Execut ive Grde r 6205- B 

4-A Rerorts cf ~xemptions under Execut ive (;rder 

5205- B from Construction Unit, Industry 

Section lTo. I 

4-B Reports of Lxemu tions u.~der Executive Grder 

6205- B in industries other than CC'nst.ruction 

U;.-it from Industry Section I 

4-C 

4-D 

4-E 

5 

6 

7 

8 

9845 

~ep orts cf xem tions w~der Executive Order 

6205-B from Industry Section II 

.der;ort of :;:;.:em--otions unc.e r I:::c cu t i ve C;rder 

6205-B from Industr v Section IV 

Re orts of Exemptions unde r Exe cutive Order 

6205-3 fro m Industr y Section V 

Executive Order 6355 - Exe1nptions to Cooper At ive 

OrganizAtions 

Executive Order 66r6-A - Sunnl eme nt to And 

A'!lp1 ificA tion of Ezecuti ve 0rd'3r 6355 

Administrative urder X-35 - Defini cion of 

Fa rme rs' and Consumers' Coope r Atives 

AdministrAtive (;rder 182-11 and 106-11 -

InterOJ retAt ion of Administrative Grder X-35 

-iii-

Exhibits (Continued) 

9 

1 0 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

9845 

AdministrAtive Cnter X-98 - Interoreting :ixecutive 

Gr~er 3C C6-A InsofAr AS it n~ li s to AllovRnce 

of brok·P rag CC'JTJI'lissions to C0011d r"'tives 

Bulletin 1\10 . 3 - The Presi d.ent' s ?. nrol0yr:~en t 

Pro gram 

Executive Order 6354 - ~xe ptin 0 towns of less then 

2500 J?O"l-:> ula tion 

::xecutive Grder 6710 - Menci.rnent of Executive Order 

6754 

Administrative Order X-72 - Su~ulementin g Executive 

Grder 6710 end designating trades and industries 

subject to exemptions 

Executive Grder 6723 - Exemptions to Service 

TrAdes 

:::: xecutive Gr"er 6756-A - Authorizing local codes 

from unq1alified service trAdes 

Administrative Grder X- 53 - Relating to se rvice 

trades, the subject of Executive Grder 6723 

Letter from Executive Com:ni tte e of ..~leAning and 

Dyeing TrAde to the President attemptin;-:!' to 

vvi thdra-" assent tc code 

rtepl y of Eugh S. Johnson, Administr~tor, tc letter 

from Executive C mmittee xhibit 17) 

AdministrAtive Crder X- 4 - Granting exemutions to 

5ospi tals 

Aruninistrative Grder X- 5 - ~xtendino effective 

date cf Admi n istrative Grder X-4 

Administrative OrQe r X- 8 - Gr~ntin ~ permanent stay 

of Administrative Order X-4 in connection with 

certain industries 

Executive Grder X- 24 - Sta; ins u rovisicns of AdministrAtive Order X-4 ,:itt resnect to the 

Signalling Apla ratus Subdivision of the Ilectrical 

M::mufacturin.g Industry 

Administrative Order X-39 - r;odif ing the Administrative Order X-4 and centing therefrom certain 

industries 

Executive G:r·der 6606-F - Grantins e""<e!:lptions to 

HandiccrDped ~~vor ':e rs 

Instructions from U. S. LAbor Deuartment dated 

Novembe r 8, 1934, relative to H0ndicapped 

vrorke rs 

Report from U. S. Labor Department dated December 

9, 1935, covering HandicApped orkers 

-iv-

E ·hi bits (Con tin ~ed) 

27 

28 

29 

30 

31 

32 

33 

33- A 

33-B 

33-C 

33-D 

33- E 

33-F 

34 

35 

36 

37 

38 

39 

40 

9845 

Po~ t ode A "'l~r~ is, Sv'rinl :·n. 78 , by -1f>se;:~rch 

And ?lanninP· :Jivh,ion., 0.f Code Provisi <'ns r egardin,:: !:rmdicnou"d "il11L.oy·'es 

ZXecutive Grder 6711-A - :?.xerrr:.,ti on to Home-

, .. or1(e r s 

Report f r om u. S. reua t~ent ct Ln or d~ted 

June 1, 1934 , reg::1rdi ns Eo me ,/c r k 

Report fro:n . S . te11r..rtmen t of La bcr dA te<i 

December 9 , 1935 , upon exe~pti n t c Home 

-,-o r ke r s 

F rm of Ap~rentice Contr?ct prepared by the Fede r a l 

Committee on APprentice Tr a i ning 

Bul letin No. l cf Fede r a l Co mm i ttee en Appren t ice 

·r r ai 1ing 

Ex ce r pt f r oo Repo r t of July 25 , 1935 of the ?ederal 

Coomittee on Appr entice Tr nining 

Repo r t :::!:r1titl ed tne Apu r ent i ce 'I'r Rining Pr ogr Am 

Unde r t~e N. R. A. by the Fede r Al Committee on 

Apprent ice ? r n i n i ng 

Po st Co de Ana l ; s i s , Se ria l Yo. 74 , of Prov i s ions 

r egarci ng LeA r ne r s Ar-d Apprentices 

Post Co de Ana l ysis , Se ria l No, 74-A, Suppl emen t ing 

Analysis of Prov i sions rega r d i ng Lea r ners 

And Apprent ices 

Executi ve Grde r :~o . 67'.:>0- C - ":xempt i on t o 

APp r ent i ces 

Gene r Bl -:e£;Ul.At io n No , 1 r e A:oprentice Tr n i n ing 

bv Secretar y of Labo r 

Bulleti n No . 2 of t he Fede r e l Co mmit t ee e n 

Apprentice TrA i n i ng 

Admi n ist r Ative Orde r X- 9 - Exemp tion to She lt e r e d 

Wo r k sho).;S 

Admi n is t r e t i ve OrC..e r X- 28 - Appc i n t i ng l\ia t io nBl 

Shel te r ed ~.vc r <:shops Comj;li t tee, etc . 

Admi n ist r At ive Crde r X- 59 - Autho r i zing t he 

Na tiona l She l te r ed ::icrKshou Co::~m ee t o 

Issue t :e N. R. A. I nsigni a 

Admi n istrAt ive Cr de r X- 81 - .Amandin :; a nd Suppl emen ting Admi n i s trati ve Crde r "'r- 59 

Exe cu tive Gr,ie r 6646 - ::::tequiri ng Ce rtif icate of 

Compliance on Gcver nme nt Ccnt ts 

Admi nistra tive Or de r X- 48 - Exemp tion in conne ction · i th quo tAt ions made t o Gove rrunen tal 

Age ncies 

Exe cutive Orde r No. 6767 - I:io dification of 

Executive Ord.e r 6646 

- v -

Exhibits (Ccntin ed) 

41 ltemora ndur:l fro .1 LAurence A. KnF~;')n , dnted June 6, 

1934, re ;-;R r ding ;:Jssess1ner .. ts 

42 Executive CJ :·d.er ~6 78 - ·:=:elf1ting to Colle ction of 

Expenses of Code AQminiGt ~t icn 

43 Administrative Orde r X-20- egul~ tions Gove rning 

Collection cf ~xpenses of Code A~~ istrAtion 

44 Administrative Crder X- 36 - Regulations Governing 

Collection of E.>-..--oense s of Code A.dministn~tion 

Administrative vrder X-· 36-1 - Int e r p r etA tion of 

PPra grapl III of A&ninistrgtive Orde r 

x .• 36 

Admin istrative Oraer X-36-2 - Inte r p retation 

of Exem~tion in Paragranh III, of Administrative (Jr de r X-36 

45 AdministrBti,,e Order X-60 - ExemYJtions of Tr.!'J des 

and Industries in Ha •vaii end Pue rto Rico, 

etc. 

46 Admi n istrative vrde r X-80 - Approving Fcrm of 

Acl.m inistratcr 1 s T'rritorial Coo perAtion 

Agreement 

47 vffice Memorandum .To. 356 - Authcrizing the 

Deputy Administrator for Alasko tc decide 

Applic ~t ions fer Exewp tio ns 

48 vffice r,:emor.gndu"!l :To . 357 - Pre scri bine Procedure for Deuuty Admin1stratcr in the Exercise 

of t he Authority e;iven unde r 0 . 11 

• .. Io . 356 . 

9845 -vi-

- l -

This i ' l~i .l.. i.st c..l ~' ol· .1o :..--·l J: 0llT· )t i >i1S from cndo 

·•rovJ. "' i ul s . lhe t o.:.'J'l n,_.o. Ol'"'l ---.f ~:.1 )ti ·.111 £'8 i .. ;r0 used mcE.ns 

thos e exc:-rr ltions ::.ot lir.: i t oe L l t.~.~~il. .,-"l 'l :i. tio~1 t c :::>_ ·)fU' ticuler cci\.:o ·out o:~ tcnd itl~o .~. t o ll coc: L:"ior'. n<~.us tri s or a s rou-_p 

or c lasG of ·l·~:uq trh:s . "'o r 0-'_..., J.n LJ, =..~ecut iv o Orr].c r 620G-J3 , 

~-Y1lics to an~- D-;10. ... 11 co '.0 s t hcl·oe..:t3 r "':..'u vo~ . =::xoc·nti v o Orcl r 67l l -A, ,_. ~.~. CJ.l __ :cr>ntf\ :J.n o;: o:- rrJt o:~ t c ··)o r mi t homo YJOl'l~ , 2.)pli e s 

'Ji1l J t ) thos e G'J <.'~e s nhic •• ~"\r :1 'ui t home WOI'k. 

L.a ~r , ~ • .:J :our·j os o o:..' t !1is Ho :c:: hB.S boon t o ::; l ace in ::t 

sL1; l v volwnc tho osso~1t ~ 1 fo2.t uros of e.. l l t l1e cc;.1oro..l oxo-:-ro tions 

t • s .... rvo ::;~_s D. ·L9.;1db00l:: or startLl&.' )OLlt for 2 mo r e corrrfn'ohensiv e 

stu:l:,o ·yf q:1:.r .):· t.i c ,,e..:cti 1.'-.lJ. r Jxe:·"tnti ons. T1"le rcfore , an cnt'.oavor 

l1as o 0~1 ::Y.::/ e to c'. evc o~"l 1E'i3fl :" a clor> :;._~ ic:o8. of ac .:. c-f tho g encr-

...,_1 8x,:·:rrlti or:.s. '1'!.1is i~1 vo lvo , filst t:l'--' ~ja :~ro1.. ~ o r C'Ji r~it on s 

'.i''1ic.-: m: c.3 r..oc ssr. I'": ;3 iscouE' ::.'lco o~· :.c ) ::l.l'tl.CUl 8.r orc1Cl' ; se ane~ , 

-;;:-sl..illr,1a::-:,· o~· t!·.-) ~ o r it lJlf; ::uc, thii·c, a f, OnOi'fl l traa t m<.mt of t he 

o:Jo r :- ti ":1S .::n ;)f:{ ;c t of th-J o:rc'.o r . 

~!le sur.:cces oi i ·L·r :-il1::' t:.-:- i·. ···0r q ob t aii.i-,cl )ri mB.rily f:.:·om the 

:>:r L1 .J.. :o i.~ . .-~ vc .::_c_1 .~ -. L~1 st_·r> ti ~;e rc~c rs a:nc: t:1e su;no rtL1g do cull ~~ nt~ ·_)o l~caii1L:__, til2l'oto . E-::>'. ev J:;:' , L1 m'-'.;:yc:..sos t here wns no su- orting 

C:.o cl..W.Gi1t.c, Oi' ".l;y C..ocurn-.. :mt c:. o:1 fi 9 s'ny:i n;:; t :1e c .. rcumstanc e s s_urroundL lb the is ua 1co or tl :; J" rticul :--·_ l~ Ci' de:;._· . In suc:1 cases whe reve r 

:)o ssibl e: ~~c \:ritc rs o~· t: is i: sto:~: confe rrecl vlith the iP.A o fficiB.ls :lc :i:12.0. _· orson:-> lly l12nC.l ocl t l1o pl'rttcular order o r l1ad s orae 

)Crsonal cx:_oc ri :mco r0_l£: tiL£ t o it 2.nd ob tai:1il1_; ve i..·ba lly such informe.tion e..s tho off ici<.:.l 11 tc~. or obtained l eads t o other do cumentary 

evi denc e . 

I n t he S8.r'1e rr..a.~mer consi (e rablo mD.t c:c'ia l was ob t a ined in d evclo::~ :1f., ~1e various s·~.1b toy cs , such ~.s 11 0pe l'a tion a.ncl 3ffcct 11 and 

11 AG·ninist:tati r_. i1 of Orcl-3 : 11 , ~n o suo -t::;y i cs boL1t;: cornrno n~j;o many of 

tho main t op ics . 

8-_:_J ocif i c i nst anc es of L 1fc rma ti0:1 c>.cf]_uirod fror.1 sources other 

than t he o f ficial ocol~cl. s a r c t 110 f c. l loY . .- i nE; : 

:Sxecutive Orclcr 6205- ::U :- T.1.e bac::rrr ouncJ. of t h is Orcle r from 

Ma lcs l m Shfo rp ( Soe ~xhi bit lb. lA) 9.1"~':. 3 . Lo t r'in (see 3xhi bit l1o . 

13 ). J.e·)o l'-t includil1__:, t :·10 numb c :;._· anCl. C:.ispo siticn of e xemp tions 

•.re r e o:;e r.:t ti v v unc1.c r :3xo cu t i v o Orc.er f!'01TI Robert lJ. Campb e ll, 

Deputy Dire cto r , Se ction I of t 11e :Jivisio:1 of 3·,1s:L1css Coope ration 

coverin; coc:o s i n _t ho Construction Incl.ust:des ( 3xhibi ts To . 4-A). 

Like r e•)o rt from 'Y . P. 3J..lis, :Uire ctor, Se ction I, of exemption"' un(cel' ~'le Order i n coc'. o s constituting the :Basic i.:a t e rie..ls and 

Fo rest ?ro9-u9ts Inlust:cics. (3:xllibit 4- :::: ) 

Like r e·Jo rt of sucl: ex.em:·.., tions from Industry, Se ction II, f rom 

9845 
.. 2 -

L · 1 ·~,.; 10 _·t f .1. o. 

clasf'L.ie::ttiJ:1 u - ~.;•)cl. 11 

I 'I , L.·c , co ·.cs \l.Ll .e r ti10 

. n I:-tLUSt .. riLS o (:::.IlioJit 4- .J) . 

Sir :.l<'..r ::.:e.1ort fr :ru' st::.::: :Jo e ,io·1 t , of Guc:L.~. cxe.r tio:1s 

us L1 .~.;-o'1 ie •. rts I· cl..~.:.tri~;s , L11Px!. ·::~ t,:.;r ~r~rricr ?::8.l.c , 

.. : Sc-;.--vir<.J i':..· ... ,'.c" .... ce·~: .1 , ~uc:tto ··ic.."..~. £1: <.1 !.fl'-f'.i i:-o.n 

; 4_ ~ s , i·1r n u Su\. 0s, iuulie -=:rn:1s 101.~tio:1 , P.; .. c' . . :u:-tuFoJ non t I:1l'x:.s trios. 

-:-1_ "r~ <:>J.'" :1 :i.'' O"ts f:-·J. I:1. u.ct:..; G • .:ctie·' l.Il ··~1ie 1 inelu<'..c s 

:~;~:i l ~~ a, .. " C' Crli rls. 

l ..... · · t.- .a. , __ .,.,J ... ·.,.,.,_.,..: c ~-'),· ...... l.· ·s -~v·c-l.· -"' U.!l.\...; ... : .H.f'c;-.S :1ll _ _;)\.t.Jc/ J - w.J..L~ ~-uV.._.'_, V ~ -~ 

tc:n:-.tivc : isto_· of C::>-O)Cl.'c.t:..ver b· :.:.: . :.laJ.·:::o . - . 

J . ClP.:.·::c , foJ.""-:'l<.;r-

:1 ,...;1c~ !:.l~o r 

_ :-:1s u:1c'G. ji)Q ·,o- 1r.lntio~: :- fol·so :F·l eo:!tB.ct ·.•i th i..l .. i smt 

Jr .. c- 1-::J."l.l~ i..'l: :::::~ec··.ti·ro r.~..ssist~ .:t of th0 Jic;t··ibut ive ~ ;;des J ivisi J:.1 . 

Servico IJ?1.·::.c'.os :- F0rs .. >:af'l co:1tnct '•i b: ET 8.rc'. :: . Col 0.11 , ActinG 

:..ss-stD.:lt .Je_ 1.:.t.· :J:.· th..., ~istr outL'l_ r:Lrn .. _as ::ivisi:-:1 . 

0e.les to :-iosJit:?.ls e.:lL'. Lls::, =.::eiiDti ·. ns to ..:.~J.c lt v:~e .:1 .• o:-l:sho·)s :-

-'f;:ic Lc0 :.oo· 0 , fom1c1·l :r ::-::vCl.'.·c iv<.J .-~.ss sta~1 t cf t1:c .?u0lic .>-~.&c:nc s 

· i isi , :-·.::c.~ ==~ccut iv o Sce:·ctr;.:..·~- of r~e =~2. ti o;:~ l S. elt 8rcd .7od:s1 o·1 

:::o,.t-:ittec . 

:.n.~1 ~ic~.:Y•c6. ·Jorl~e:cs a:1l1

. i-i:ol~1e':!or:w:c :- I.irs . C l~.:..·e. :.: . :yc1. s , 

Assistant Jirectc:r, Jivisio:1 of la."oo:..~ St o.:1o.a r ds, lini tccl. States :Ue··;art-

• .10:1t -Jf L..,bor a:1c C:1D.irrn<:>.:il o::.' ·:·uc1

.c r a.l C·.l~ili':-ittov o:.. ·-·mre>.tico ·:raiaL1~ . (So; also rc:'c·rt o .. I.abo:: :· ~•a:::tmc :J.t 01:. ::.-..:1 ~i e::- T:>~Jo(. ·.:o ~:c rs , 

::x:1ibit i~c . :6 an-~ ro )o:.:G o:.1 ~=;ID0\7or~ :or , ~--hibit i.:o . 30 1 • 

~···n o:1t cc T- a.i.rllinr; :- H. 3 . (:Ui1cle rscn , TF3c:.,.:1i cn.l S...::crotar~' of 

- ~'-:crJ.l ~oruitvco Oi~ )::)Y:'C!lti ec :::rai :.1i ::1t; , 2.:..1c'. ~;~::_)lcy.::os of the comn~ i ttco • 

..:-.;VO:i.':1r.lent Contracts:- Tc:..1e;1 '!' . I:aryc , :Co:..me:i.' Unit Chief, nto:~

~i.. ctet J: U:1it , ::=:.cvi-3·;: :Jivisi,_m , '.Fl:o foi'L·erly t.L8.nd ec~ t he revim: of 

o·r c·Jtio:ls fro.~ ::cccutivc Or~.or 6646 . 

::!: e1 o ··:lO T~.; rce.:r cxcr.n tio~u; t '1a t do :1c t como •i thi~: tiie sco<)e of 

~· ir ... ,o_~- 2.1'' .. f~ r usc:ul i .!.:. o rr.a tio: .re ;P.rdino o:.;:~..~!~)t i )::1.5 L1 goncral 

t .. ~ .. <.;a .o:.· i~ i:.vit}d to 11Ac • .1L istrativ<J ~ur ~o~al .Aspects of Ste.ys, 

:.-v ... _)tio:1'" :-o· ·. -:xcopti c:.·1s , Co'e Amc:~c.ments , Co ;l~'i ti on?.l O::.·c.crs of 

l..·y1rJ ...,1 11 , ·o:i.~-~ ·,l .... tCl"ials 74. 
A. ~ .. ~ ·T -,~ c' 

...:J.:>--1- ll - - . u 

COD3 

I . O~i i~ of Or {~ r 

I I . 'J\w 01 rlvr 

III. Co:..:s truc t i on o.: t;_oJ G:c,'_e: r t 

(1) Amu.1dr..un t s to ~c<.los aav be: '" c:.ye ~. LL"'lCio r 

t ho :::::-:ocu t i v o n~.e r 

( 3) rtic~ la ti n 

( 0 ?.0y e~ ti ~ 

(4) Ttlc t ! r fl. Ctio;l i s b lP. t 0 1. B.n oxoiTPJt i on 

o r s t r-.y 

IV . O:,Jo r a tio:.1 P.nd =:f f o c t 

V. .Ccndusi 0n . 

I . Or in of Or ~a r 

:rho :·n ticila_l I ndust riel ::tocav .:: r y Ac t VJ2 s f:'.~ d Jun·..; l G, 1S33. 

Tho fL:st co,·o , ·. t ! ·· t of t !1e Co t to:1 J: ox tilo In·_~ sti' , 'ivas ~J rovod 

b;.r t J.1c ?rosL' .. :mt o:.l 'l r : , l :-''T3. t!) ':::1W Ord 0r of Ap:-9 ::covn.l c onte i n -

cl tho c ondi t i ·')il5 :ch"'.. t a C:;Ji::i strati vc C:)Y.tsi ciora tio:;.1 should. be g i v on 

the n~:r licati o:l c f f'il r rs n J iroctly affe,~ eCl. o~.r the coC:.e who had 

no t i:1 ~1Jl~s o:.1 o r b;-l :..op:c.;s cn t a tivo o2'. SC~1 ecl. t i1e r e t o anC:. l~'1. t a ny 

suci1 o:..~soll s} J. ~..l l b o 0 i vo;.1 E".:1 o:p )o rt·o.:.1i t y ol~ a :1oari nG b efore 

th.J A.J.1L1istre.t o :c oi- h is e: te.tiv , ) rior t o i ncur::cinb a;.1y 

liab i l i t y uncler t J.1e c c cl.e b y [' i1 T OJ. e r.1c&i1S "lr doll i n t ho Ha tiona l I n c,_ust:i.'iP.l el~;J" J c t (See conc.i tL.> il ( 11) of t he Or6.er of 

A~ Jr va ) • 

T::e ~ossi"uil ~r of litic,a t i :):·l i nvol ·,ri no ~1e l e:;ality a nd o~1

ituti :) l1f' li ~ C'f t h-3 ~o '."T it : r ::;s:?o ct t o enfo rcement o f its p r ov i s:.ons t\_l O'l no:1- a sso:.1 tL., :Jemb e :cs v:-_ s r:s it~o ::c od. ·by 1e l ega l sta ff 

a n(l_ e r:_ os ti l ''as r e.ised rrhe t hv :!.' such no:1-ass o::.t i:i.1g memb e rs ha.d. 

b e .Jn .:;i v on duo :1o ti c 0 :::> :;_1Ci op~) ort•_,_n i t J for r!k".ld :;l""' obj e ctions t o t he 

) r OJ!OScd co.:i.e , c s_) c c i ::. lly as t .:3 1 e. lt , )re visi ons of t he Na tional 

i..~'\.,_strial J.o cov e r:r A.c;t rrc r e nsii~ o.:l t o lJ,ave b eea s eve r e . This 

conc.i tio:..1 of L:o O:..·d.0:- ~- i~o ::.. c i :.1,. f c :::- ~1:; ~n ortuni ~r f o r hearing 

v·e.s a ccordillt;l y i n s crtoo_ t o me -::: t suc:1 1o ss 0 o·:J joction s . Thor o 

VIas :1ov1ovcr cri ticism f r oc! s o:·J·J o:i ~:e morab e rs of .t his nc stry 

U - . J.. , • , t , t J • • , • .1. • .1. , , 11 . -?O":. t... .L:e [.,TO U:..1 ·~ . Lla G1llS :. ~~ t... 'i 1 •;rf' s t... C-J oroa c. e.s 2. nn ~ more 

i m.iR.l.ni t y f r om liaoili t :;.- t c n o:.1- a sse:.• t L1f; mem :.. s than v;ras ilCCe ssar,,r . 

After t l o f'._)lJ:..·ova l of thi s ccc'.e it v:a s c. omocl ~1e saD· t o have 

a c e:1o r a:'.. rd i~ l~ 1u" for ~10 ic e Bl1:. O'}~J o:r:t1.1.;.1i t y f o r hearint; , 

lic bl e to 2.11 co·.l_cs . An orde r V!&.s e.c c o r d int:,l y C::.raf t ocl b:r t he l ega l 

(1) Pri:1 t ed Co c

1

.c Vo l unc I, ~1e ,; o l. 

~5 
.. ' 

s c·u.ti v 

t ·- ! i .. , c .t• J i '1 i '1 

.l .~:.: :i.' ~:.:-· a · in~ 

t .. \..! :?~"t.: i .. J: t c;ic~1 r..: 

Cr : ... r ~i • ':~Y) . 

.~ ):' i. ci Y' l "bj ... cti j.l 

t .c Cutt : ' til ~ Co ·.e . ( ) 

t, ~ ore'.~-·, '· icl:. 72 s c~e si

·.z. is; ::.·<Jc ltiv.J r ~:c _J::.jvic." ~d f .:. r 1 .:PrL\;_,s after a~ a--p r r va l 

.~. ::> c ·~ t h:~rs ·.s ··:.1') : !>. • !1Ct vi t :. :..· i ·1 --,ars'):. o:: b~· ~-ry r .... s c.:1 t a tiva 

-,: 1·tic1 ;!>t .... c' j_p ~;;Stabl s i:1.:_ ~1· '::>J. not C ~1~c ac t St."..Ch OC~ , '.".ho 

cl2.i .... (i t :::~t i·1 Y"rtiC'tllal· L1"'t~. cas t: <:J c c. e ··:::~.s u:ujust t c t hc .. 1 e.:1d 

_ . ., li .... d : r ::.:1 ax<.;m1t i J. t' .. <.;rvf .c.:m. Pvrs u s s• 2) 1lyint; i t i. i·1 tvH 

~ s e.ft ... r t .• ~ af_ .... v~ d:.1.t...: of tht) cot'J ··.s.la b iv..;n 2i o".!:no rtunity 

f _r a . ~a:cL1b ?nd. datar,n :i1~tJ. n _f th"' issuel': r ais 8cl. 11·i o J. t o incu 1·-

rL; ?ny l iabili ty unJ.a r 1"~ C:)clv . Thv Ai'r.1i::i sti.'8.to r .. lioht ~. so , 

i 1 justice r aquilec". , st:::~.~ tL0 a.1 1li 8f.'.t i.i.1 "'f th..:: C'! e t" e ll si ,. ilf:. l'-

ly :::~ffectod )c.:~dL1c... th.J da t .JrnL1r, t i "':.1 :.f t i1e J.ssuas r a is.J<.l . 

11An:r c oc e f fai::c cc Jn..; ti t i · n a~,., ; r cv ed o~· m0 

s.nl"ll b<J d0omecl L1 ful l for ce a n r'. efj.'ect ::1 t i. e 

effoc t ive u2ta as sta t al. i :1 t he c od a ; bu t a f t c. r tl:e 

a:r.,- ro-3.1 of a C)da a:ncl ?.san i n ci d.;ut t ·· L.~ i. ·.lud.i at e 

c~1;:r emvn t t~ o r aof, ha;:.rLlCS m13.y b a .;iven u..,r tha 

A 1L st ato~ or lis cll3si 6 na t c. c1 y,,)r c s a:t1ta tiv .j t ')e rs ns ( eb defi ned t: L1c l u6 . ..; :1a t ure.l ~Je:i.'s .::-n , 1a .) :~

~ i us, associati..~ns r c:l~.-'lore. ti ·J J.: s) ,,.:1o l12.v o l1"' t i n )c 

s.~; J:..· b:· e. rc:1rc<"-i.1tativ .... ')a ti •.; i ·12ta.'. L1 tJ stablis} i nu 

.:::.:- c: Sui.1ti 1 .. '-; to 2. c ede , but ;·h~ f:l'c c'ir.s c t l y 2ffe ct ac~ 

th ... r ouy, an{ ·r 1o c l 2.i:1 t1nt a·1~l lic8. t::.. ::as ':'f ~-;.<J code 

i :1. 2-rt i cu l ::>.r ins a::1c~s arv unjust t c tba1·.1 r·.:l ,.,:10 

e~nly f~:..· ".n -..xco~J ti :i.1 to , c1~ ...;xer.:r.:_Jti-::1 Ii' m, o:;.~ moc'.i f ica ti ... :a - f the code . Sueh ~"~e r" Cl1S s::; :::·y 1l :·in...., , ··:i t :1in t ,.m 

C.n: s aft~ r the. cffe c t iv"' <.1..[1. t v cf t .n.) CICC: , s~l?ll be Liv .:m 

::>'1 0'1 - ··t . t-- .C' .. • • ' .. t . t. f t h -- _ .l unJ. J .L'-- r <"· ~ .__ar1;.1r; Rnc O...; ..;:.~J1 J.i.1R J. --:1 c e 

i ssutJs l~a i s0cl ~Jr or t L1cun·1i.:.; Pl1J lie .. bili t~· t c c:n -

.:~rcome:1t Jf t' e c oC. ... , 2.r:.l t h<:: . <.'1.IJi~1i st :r c:i.~ s'·::>.ll, i f 

j·u.stic requi _es , staj' tl0 r·.x1l i cation ~f B code t o 

:.11 ~Lnil:::~ .. rly effec tcC: ~~ .. m('. n~ a dvton. i n"ttiji.1 b y e 

oi t!,.: issuos rai sed. "( 3) 

~s ;Till (.; obsu r ved f r .1. th...; ::::Xa c1..1.t i v e r.~ .... r, b 1c. mv r a f i li:1t; 

f t:._ a)!)lica t · ::1 ··i thi :1 t . e tui. cla.y :p e ri oC: .1:-o.c' t _,;; e f f.._ ct :::f r ali- · ·1 t:.~ '- .. 2 icu::t fr~.n t:.a pc~B.tio:.1 of t 11.., ce de until a n 

·_)o -.l~tunJ.· t·.r 'h,.., b · .c- 1 · · 1· · 1 · v .. "'-"c .. b'-i.1 0 1Vv:1 .l:,:i.~ a 13arJ.D.- • 1: ') T -- l.ulJ.l1P:i.'J' S10 ..,J.l1(:; 

( ) 

( 3) 

9845 

So ... 

en( 

r s 

Co_-

''"'. 0 Dn.: .. v.mc L"·m l .. a:i.c:.l.l 3hal~, , f.:i..i.1c;l~ly o:;:" tl.t;) Ldf;al :.,ivisLi11 .J~ r· ic~ iot·--i l f t~ ... c L~;,;gP.l :Ji vision , -=: . .11i b its 1- a r ncl. 1-:D 

t:Cti vely . 

f Zxocutive 0Fd r 6?QS ~ :xhi b i t 2. 
U1)011 .~.lc.; m.:;ri ts r;e.s l'equ.i.l'c.;u. r.2llis r oli ... f ':Jns lirai t c:d , however, 

;1 r t c t:1. s 0 ,_, ;.t, c:i ~ ~1 ~'..:, ::.-ti ~. Jo.te ii1 est0..blisl1L1t; the coda 

or ha( 1o t ..~n sentl]CL t 11c reto . 

(l) AmonfuJents t o codes cou l C ba stayed 

under the 3xe cutiva Or1c r 

It was held t:1-::>t sincv. an enonded cocl_a .bE?c.ame p ro t a nto a new 

coda t~1Et t the :El,"'{OCUti VO Q::..~dar YF ' S applicable t o e.mandments; ( 4) 

h.::mce mambvrs of the 1articula1~ i'aC:nstry who had 11o t cons ent ed to 

such aman~.. mo:n t or narti cipa t ad L1 its adoption coul d. f ile their 

'"'bj ... cticns within t he t en dr-ty )cni oC'. , L1 v~:h ich ev vnt a s-tay of 

the amendment b .:; came ope ::..·e. ti ve as t o them. 

1.ll.1o werc.3 the -,Jc;rsons 11 nho have ne t in :1a rs cm or by 

r a!Jre s en t a ti ve ·)arti ci•Ja tad i n e s:tabli shil1g 

or cons onting to a cod.e? ll 

(3 ) -articinati c:n 

Unclcr tl1i s Ordo:t a ·10 rs on :Th,J me r el y ap:9aar ed at the :;?Ublic 

hearing on tho cc·l_a 'but objec t ee. t o. the coda ccul ( not b e said t o 

have 11 p artici:?atel'_ iu tho establi shing o f or cons.:mtin:?; t o a coda", 

unless his ob j e cti :- n ·ras su in ~ a:u:t the c ocle mnended acco rC::.ingly; (3) hc:mc0 )ers o:as s o a~ noar s a:..1c: obje cti:1£ t o a coda were 

alit:,iblc t,) f ilo a•J•Jlice.ti•)n ,-li thiil t he t ail .~r -Je riod . 

( 3) Re-) res0n ta ti on 

In orddr t o hqv 0 ba 0n li ibl e as a nonparticipant the applicant must 11c. t h8.ve pe. rtici Ja ec_ e ith.:; :c in ~Je l~ son or b y 8. r a:9 resentative at tha hea:cii1t;. ."ih.;th<H o r ::- t 2. ~Je n v7as repra s ented at 

the haariilb W?.s ordL1arily e. quosJci-::..1 c f ax:·::> r ess 2.utl1o rization. 

How·evcn~, questi ons dic1

. a:cise El.s t o whe t ha r such r e:p r a sei1tati on existed even thoush no ex1Jress au ~1or i t -- ,.,as conferred ; f o r exam:9le , 

whethar the pers:ms ):pea rin~ ~1 IJehal.f o f th.; tl.~ade assoc i a tio:.1 or 

other sponsol.~ing or_sanizatica r0)rc s c:mt acl the in( ividual memb e rs of 

such organizati:m t o the ax a~1 t thc.t a memb dr vmul d be de emed to 

have l,)arti ciyatac\. in the vstabliSLlfficnt of the code . The 3a tail Jewe lry oc~e provido.d that t:1d Coo.0 Auth8ri ty might m£tl;::a r e commendations 

(4) f;iemol~anduin from 1. J . 3al~narcl , 1ege.l Council for the Revi ew 

Di vi si o:a , t o ::B . l/. J e ffrey , dated Sapt am a:;_~ 27, 1934 , i n re 

~9 Jlica t i on fol~ exeiTI)tion of Gl :~ .:a t ch Coiii2.Jany , Re t a il 

J ewe l ry Trade (Ord.sr lJo . 142- 24), rrarl::ed -::Bxhi bi t r~o . 3. 

(5) Sac memorandum from 1 . J . l.~:.1ard t o . Li . Jeffrey , Revi ew 

Division, cl.at ed July .57, l 93<k , Jxhi bi t 4 . 

9845 
v· si 

- 0 -

t.L18.t trac -.. , rhicJ u \.,;n £>nJr . ..~val of t c AJ.r .. in-

:> r iv.., :1!" ~ p<:trt .f tl!n.t C-..C..v . · ·.lt,.; "' t .. t.. 

its ... c c . ~.; nda t i "1 s ·.J,u·suan t t -:- sue:. ·) r o -

ved 1.n~.' t:i v vf,...:·c bec"'me a !_Jart o _ the 

c du , it 'lO.r.. lc1 t r~t t! ..... C'"'c.e ut .. ~.. rit· ::.s to such a cti(. n re:or ~:: en

d t .. cl i .'t.. in' st : an all m.._mb ..-x s t.1 ... re-:>f had the ef"' r e ,ai·tici-

. ted by re·"r~;;sentati J 1 L1 th~;; c stablis1un-.nt o_· s·v.c1 am"ndmen t , h"'nctJ 

to. as LlO")<Jra ti v0 as t .) a rot.. 1b "'r c.: van t 1 )1lt;,~l ...; f il..,s : i s 

obje c tiL ns ·i thi~ tl0 10 da: Lri cd . ( 6) 

It . i 11 be n ... ted tl"Ja t t " O:cc' -.;J.' gra:11ts r a l i ef t o ;)e rs.::ms "who 

~pnl: fo.L' '1.~ c::we·•ti n t o , o.t cX<Jnnt i.~:l f r CJ!' , or a mo<li f ication of 

t. .._ coc.3 . u Thar.., s .... elilS iF c:oubt the.t tl·c:. r e lief ~1 .. mdL1_ sue' 

~er in0 v·e.s t t o:' fl.~l ex0m t i rJ. c.s ci.istL1.;uished f r om a stay n :> t 

o 1~ fr .... ·1 t~1c exJr dss lan[,uabe of t110 Orc.l.e r but f:L··-m t l c e~ ss 

dtdiniti i t':-. tv:.·m "ex._. .. 1)tL~1 11 ''11icw -?.~YJl s t . :tulint;s ;1hicl1 

releas"' .... ,1 inc.i vh'.l.lf:l, brou1 o r class ··i t:1i:r <:•.:1 i:1C'us try fr:m b1 .... 

full G:;?v.ca ti J:l :fa code Jr~visio:1 as C::.i sti n:~;u ishvC. fr:)n t ' .l'l. t of tl10 

I'li 11 st2.;r 11 ···hi ch a}nli cs t- nJt 1--ss U1an an en tii~e i:1 c.~ust (6.) 

:·evc.L t~.clvss t 'w reli0f provi decl by the 0Tder was almost ·J.niv..,rsally r .. f" r rvd to as a 11 stay rmcl.cl 3xecutive Orcl<J:c 6;0.J- zu . The 

::.~ill 11 st['.y 11 no c.'.oubt '7as aclcp ted bece.use of t -1-:, ·Jhraseo l c,,s _-:;.~ the 

last sc:1tencc ..... f t11e Order, i. 8 . 11 2.~1d t l...: A' ni::.!.istl·ato r shall if 

justice requires, stay t11<.. a.~J~Jl ica ti cm o:f t h6 c :. _· d t c -".ll si -:tilfl.l"l:r 

af:fect-.::l. 11 ::11ile ge·1c rally k:n:: vm as a 11 stnyll t he re l ief 1as hc•;~vv ..... r 

:fl.anc.U\.,;d as a>.1 axern:•t i un <?.i1d orcters t0rmina tin:; t:1a 11 stay n v'lere sibncd 

b; t~0 ~ivisi 0n Afreinistrato rs. 

r--. Ooe··m. ticn an' 3:ffect 

Tht:; reli e f provided by ~ o Order ',"fl.S a vo.ilvd cf qui ta Gc3~18 l'r>.l ly 

by non-o..ss6:1tL1[, mvmb'-'rs of th" industry. HearL1t:... s in m::t: C:->.s <Js 

7<J r c d..., l n.yed with tnd r e s 1.lt the.t rnitn~ ... rnt:>mb l3 rs· of in c~u stry e 1j oyad 

..,~t :nls fo r cc::si d...,r abl c3 pe riods of time anc'. in r.112.ny instai.1Ces 

duiL.b t.10 "'ntir ... li.l0 of t:he coda . 6.Gl~ t~ c Orc.~.e-· t }l .... exe,n.)t i _· ·ls 

became· op~.,ra tiv c UJon t he mere f ilL :_, of the 8•::>:Jlice.tL·1 ,i-thout 

t ..... nc ~ss i t:· -:f m£'_ki nc; fl. shcning • 

. uilt.. rvycn·ts f::co~ all i:1 6.u st J.~ 0S 

ha.va bt...0:Cl r·"cai vac1. f:i.'Qm 410 L1C:.us tri..:s. 

~v<J i1C b.::dn rac e i ved , ro::;lJOi'ts 

rhvj COhlJ rise ~xnibit s 4 A, 

(f;.t>.) - e£initio:1 of n:::::x.:;I:Ipt i --n ll - Office i.E.nur-.l'III , Sec . 32lO:.ru-J. "S t ay " 

s..,cti n 3211 - S..:-.- e.lsJ Rvvi e '7 :Ji vi si.: n ?rcC<..;LG"". t l!c . 87 , - Offi c e 

· .a:::u;- 1 -rr, S-cti :1 7 200 . 

• • I . ' I • • ,..._, J. ., - ",J ... ! • ; 
4 E, 4 S , 4 D, "!lc: 4 ::.: . 1 cp:..~-:"'CL1.U Vc Orc.\. Ji , 17 "')l)lice.t i ons 

\"l;)r m::>C., • ~ i ~· J. i:, ~:.··.:. ·.~. :: · i; _ :-~"'-) c" £0s. I11 28 7 ce.s a s 

no fi:.Bl n. cti. ~! ·".!£ ( b,.-.):' t< _ ·:. ·, t~~r.J st0.~!r; i'c;UC:.i n a. in offect 

d.urL1~: th..: ll. i'... P t" c ' 1 ''A ...., .., - ·~· h~ • \ r I 

:'he ru )O:r1... f''..~ .~ T ;l u u.L', u~ : , i i.1 l is [1_"\.:C t e COr:1J_J l 0t0 f"ncl i~ 

thuror orJ susc .... ~t ibL. )l f·~..lrt.l. . l' " l'l'l.lysis. I t L1cludas t l11.. bc.sic 

Co:1s tructicn C ... c:o "!ld 2'3 su~l~l om"'·1 t · .... r; ccd .3 s of the; Construction 

I:1:'.ustry. Tl10 r,.r_Y• :rt o.L" L clurler. ) othc:-r inc~u.st:t as ii1 tl1at Soctio:.1 . An ::.nD.l ·sis .JI thi r o-lurt shcv:s tnc; fo llcYlii1g : 

: llo . of co.s c s L1 r;hich f i 11.::- l 

'.2.s·::>o si tio·1 h.qs be.:n 1!nL~.a 

l.ic . of ce.s a s iE r:hic~1 no · .. is-

·Jor:iti.;:..1 lns "ue.:.:1 '' -:.c:a 

~rom 7 to 8 nt:~ 

Fro.a 8 to 9 mont 11s 

:r.,rom 9 tc 10 n:::..n ths 

From 10 "~ 11 f!1.01: LlS 

?rom 11 tJ 1.3 r,~o:n t:1.s 

V. C'):!.1 clusi _n 

33 

435 

185 

270 

3 

26 

3 

86 

64 

l 

:::'rem t:1.o 2.bov0 it · 'ill be n ·. t cc1

. tint n l arge numb e r of conce rns 

obte.L1ed collt_pL;te i m.illUl1 i ty :-'r _,;1 lirbL'.i t~ under c,d~s by the ma r e 

f iling of a11 LJ~Jl c3.. tio:n ':" i thcut tJ._..; nc:c.;ssi ~r of me.king even a p rima. 

f a ci e shm·:L1G, L12.l1~' f r " l 'Jn;; ·)e;:;.·i c·". of time and in t he m9.jority 

of ca s c:s durin:; th~ anti:!:e l i f.; of t l:e coc~o . ···: he r e hearL1gs 'Ue re held 

t ho st3..ys w.:; r a in ;·.1ost L1ste.nc e s t.:>r .. lii1C'!. t ed , indicatin.; thRt mo st of 

such 2.::_J Jlic0.1.1 ts \7Grc no t e nti tle c~ t "J relief. It •culd there f o r e 

e:9::_Je~ r t:1E't s :·n,; )rovi si on should lBve b e.J;J. ma.d.e for a prorJpt de t e r -

min£'. tion of such e.~Jp i ca ti c:1s. P o ssibl y 3.. gene r 0.l c rdar requ iring 

supp l amontar:- o:· '_Jo st-c ~.s l1eari n_ s upo;.1 such y~J lic3.. ti ns within a 

(7) ~he d is·.Josi ti-:- l.1 of 10 2.}J)lice.tic·ns n ot sho·;m 

9845 
- 8 .., 

- om t . ffcc ivt;; dc.tc s O:i. c ·as r: uL.: hn .. ve m~...t 

s it'lti T'l r quil· •m•Lts unc1 ~t t __ ~~~" timG 

'irno · ti n . sL1 ,L L~n.r n · mig!lt 11<."'.ve b.;;an 

bj.., ctiilE, t~ n. od~ · .r: r n1embv rs ·•ho 

.t,;j1 sue' .l~.;~ ... i1 , , ')' isi n coul"' l·""'l.Vt. bc.. cn made 

fo · s' br.issi . 1 f!"'..ct\:tal daiR ...... _lc bri..-fs t 1 ::.'A ;1 •J r before tha 

t ::J_. sue 1 t;f.l. ·int, r ;: · th' n sue: .. ·"'r""scrib.3d ·1~ ::i d. . 

984::> 
- 9 

B. EXEl\iPTICNS TO COOPEHATIVES 

I . 

II ,. 

III. 

. . IV. 

v. 

-- ---------- ·-

Origin of Order 

Executive and cJ minist tive Orders 

.A.d.ministrotion 

Operation and Effect 

Conclusion 

I. Or~gin of Order 

Ther e has been in existence for a numb er of years cooperative organizations. The genuine cooperative is ordinarily the Farmer 1 s Coop erative or the Consumers' Cooperative. They are usually incorporated. The 

Farmers' Cooper ative performs the function of a marketing agency for the 

farm pro ducts of its members and in many cases also acts· as a purchasing 

agency , usually for supulies used in the pr~duction of the products 

marketeQ by the organization • 

.As a purchasing agency the organiz ations secure the quantity discount which is passed on to the memb <J rs, usually in the form of patr onage divid nd~. The s e dividAnds are paid at fixed periods and r epresent 

the net income aft er the .deduct ion ·of admi 1istrativ e ,and fixed expenses 

and are payable to the memb er in amounts p roportionate to their res~e ctive purchases. Consumers cooper at ive s operate on t he same-principle 

except th t it acts mer ely as a purchasing agenpy and does not include 

the marketing featureo There are othe~ so-call ed coop eratives which 

contain some b~t not all of the features of the above described organizations, as, for exampl e 0 establishments which allow discounts to purchasers but V7 ~ich do not act solely as agents of the members • 

.A numb er of. codes conta.in p rovisions de signeci to limit the payment 

of rebates, refunds and une arned isco~~ts t o purchasers. It can, therefore, be readily seen that such provisions p r ohibit or might be construed 

to p rohibit the operations of coope r atives. ·In order to permit cooperatives to continue to function the Department of .~riculture r e commended 

i.n Executive Order · exceptine. cooper atives from such code prov isions. ..As 

a result of such co nmenqat ions, tne President on October 23 , 1933 

signed Executive O.r~ r No . 6355 . 1.) 

II. Executive and Admtnistrative Orders 

This Executive Order provided t hat r:0 code or agr eement ther etofore 

or thereafter app r oved should be construed t o prohib it the payment of 

patronage dividends in accordance with law by any bona fide and l egitimate cooper ative organization, including farmers' cooperatives, p rovided such patronage dividends were pai d out of actual earnings and were 

not pai d at the time the membe r makes the purchase from the cooperative 

organizations. 

It will be not ed that the above Order is not in the form of an 

e~emption. As to codes thereaft er formulat ed it constituted a general 

policy that no code should contain p rovisions p rohibiting the payment 

of patronage dividepds by cooperativ~s under the conditions p r e scribed. 

l} Copy of Executive Order No. 6355, see Exhibit No. 5. 

9845 
- 1£ -

Ho v r, r to ho.,"' cod t" pr Pviously approved containign provision? 

>rol i' 1tin · th p aymen of petronage dividends or susceptible of that 

con true ion, the ord r per ated o r elieve cooperatives from S';lch provi ions a. ~ to 1 at ex ent amoW1te' o a generp .. l exemp tion. 

The irnmuni y of ooperatives from code ~revisions was further en1 g d by ~- cutivc Or der 6606-A, dated February 17 , 1934. ~/ This 

Order a.eclared ( 1) Jlha no u rovi sion in any code or agreement theretofore or thereof er npnroved should be construed to make it a code viola ion to sell to or through any bona fide and l egitimate cooperative 

or any intervening agency of such cooperatives; (2) That no code should 

be construed to p r event such cooperatives from being entitled ~o r eceive 

or distr ibute to its members as patronage dividends or otherwise the 

ro eeds derived from any discounts , commission, rebate or dividends 

or dinarilJ o by code provision , alloved to purchasers of wholesale or 

middl man quantities; (3) The Administrator was authorized to dete~ine , 

after suc1 hearings and roc eedings as he may . deem necessary , whether in 

any doubtful oase , an organization is or is not a bona fide and legiima e cooper~tive organization entitled to the benefits of this Order. 

I 

Pursu8Dt to the above Executive Order the Administrator by an Order 

da ed. ay 18 , 1934 , 9.} entitled IIDefinition of Farmers , and Consumers 

oope r eti're 11 o. X-35 , prescribed the following cond.itions to be ful- . 

filled in order that such organizations be entitled to the protection 

of the Executive Order: (l) Be organized under la~s of a state , terricry of the District of Columbia; (2) Permit each member owning one 

paid share of membership one vote only in matters affecting management . 

of he organiza ion , unless otherwise provided by the law under ~hie? it 

is incorpor~ted ; provided a central ·or regional association made up of 

cooperative associations may permit voting based upon volume of business dor!e by members with regional association, or on the Iiumber of members in the member association ; (3) Operate on a coope r ative basis for 

he mutual benefit of members , and all income , after ·o ro vi ding for reserves an~ dividends on stock not .to exceed 8%, must be distributed to 

members or shareholders op patronage basis at stated periods not more 

frequru1tly than semi- annually ; (4) Jon- member business not to exceed in 

value the member business during any fis~al year ; (5) Permit members 

a CPSS to records to determine compensatio.n of o.fficer s arrl. employees • 

and no salaries or commissions are to be paid except for actual services; (6) Distribute patronage dividends to members according to amount 

of business '.7i th the association; may permit such dividends of a non- · · 

m~?mber to cc~ulate until they qual the value of a share of stock \7hen 

the came mcy be issued; patr onage dividends must not be made i n form of 

r efund a time of purchase ; no evidence of any such dividends by agr eemen or ~epresenta ion o digtribute a definite amount may be made ; (7) 

o rno e than 3% of he Cap ital raised may be allowed for ser vice or 

organizer s ; (8) Conduc its affairs in the interest of the member s. The 

con rol or management may not be by non- coop er ative organizati ons or 

erso s o Tihom surplus savings or unreason-able comp nsation are pRi d ; 

and mey not be r equir ed to buy commod.ities from a specified non- cooperaive concern; (9) Comply with codes for industries in which the~ operate. 

l/ Copy of Execu ive Order No . 6606- A, See Exhibit No . 6 

gj Copy o: Admin·s r a ive r de r , Ex~ibit o . 7. 

9845 
- 11 -

On ~· e , 10~ , a rul i · •" 1 i.'~\.- -· )l'P r tirm ··[1~. · i s!';ue c3. (Aclmi n i strati on r der _''ls . l _ ..... ..,_r ::- ci 1 -C-'.l. , (*)tnt; o p·~ fr:>c t that Administrativ e 

c3~ r X-3f a·cr·)l L-'!0 to tllY to·-1. ·~ ,~~., n c1 Jerri l m:-i t e COI1l) erativP. a nd 1rras not 

l imi t€'d t o fa:t·n::> s t [ ' • l ,0:lsUr'Wr f- t ·)ro-nniza t .i..r'ns . T'l is rul i ng \:o.s ma de 

nE"cessary ca ~.: of' t \1 cloul)t cr ~D·:.~ O.l\Y h. ~ cau ti ,..,n 11 f X-35 , ., 11 Def ini t ion of Fn.rm ; r s 1 e·1d Consum"'rs 1 Co•)lJfc• j_'t'.. ti v e s . 11 

On 0ctnb er 12 , lS34 Aclmi ristr a t ive Order } o. X-98 was i ssued f or the 

pur-po e of cl nrif:rL1g the --c r ovisi ons of -e iv e Orde r No . 6606-A. 

rde r X-S'8 deals Hi th brok:e r a .";e comn i ssi ons , u r ovidi ng tha t no code shall 

b e cons t rued or auol l e O. to '\' e i t a v i ol c"t i on t he r P.of fo r a memb er t o 

uay bro Ker age comr:1l s sion t o a 'b ona f ide .?"'ld l egi timn t e co ouer a ti ve uerrm ~ t htJ func ti on for ~1hi ch 0ther uersor s may rouerly b e uaid comn ens artion , and t h a.t n o cogni zance sha 1 b e t a'cen of t h e fac t that such 

tive will. dist ri1.mt a i ts e a rni ngs , i.ncl.uding such brot:e r a g e commissi ons, 

t o its mem-bers in t !le f or m of u a t rona ge dividends , or -. ~ f a ct t hat such 

1P11bers •n r b e the ~urc~1as0 s of the u rodn c t s in connJction 1.'1 i th ''7h ich such 

commissi ons ·~ e r ealizGd . ( *"') 

III . Administ rat i on 

I n accor dance ni t h Of :tice .. morandum 205 , -'le.tt e r s r .;l a t i ng t o co oper ative or gani zation· "'Jr e r efe r r e C' t o Divisi on 8 , ,f \7h i ch 1.1r . Idn ton 1.:. 

Coll ins was t :w Div· si ')n .Ad.mir..istrator . Tl.is clivisi 0n was l ater name d 

t l1e Pub l j c Agenc i .n s Division . T::2 e fur n t e r ner sor: ne l wo.s as fo llows : 

Assi st.ar.. t De,Jut y Ad.'11 ini s t r a t or, V. J . · Cl a r k e 

Lega l: Ho1:1ar d E. Wah r eEb roc'c , rdn y 3. . Pr i Y'. c e , 

P e t e r Seitz , Wil n Wis e 

Re s "' e.r ch and I'l &Yining : J ames Port e r Davis 

Lab0 r : Ro s e Schne i clPr mc..nn , ~rdne y Su:frin 

C0nsu.mer s : The, late £,1rs. I.Ia r y Rums ey , F<:3 r cer G .• J ohnston 

I ndustr i al: ~alt r ~te 

IV . O·o-2r ation and ff ct 

,. 

There ha s c e·-:m conside r ab},e .j ct c:-~ on the -oart of s 0r'le indu stries 

to the ro ct n a f for de d o0~e ati . The co;.1trov e rsy wa s -par t icularly 

acu t e in the Sa l t lila nu fac turers' :-~d:ust , the Coc.e .A.uthori ty for t hat 

i ndust ry b e i ng o-ouo s e d o the r e cogni tirm of c e r tain co o-pe rative organizations a.s bona f i de d i s tributors of the ir 1)!' 0d.uc t . I t was rinci ally du e 

to t~ is controve r sy tha t Ad.1:1 inistr a.t .:. ve Or de r X- 98 (dealing \'lith brokerag e 

commissi ons) was issued . Tl e r e "as a lso objec ti on f r om t h e Food I ndu s try, 

the code f or this i nd:us t r y h aving def ini t ely n r ohibited t he uaymen t of 

brokerage t o bu e:;: s 1r to o..o- -=~ ts 0f buye rs . 

(* ) Adm i nist r ati on Or0_er ~o . 1 8 2-11 and l S6-ll, Exhi b it No . 8 

(** ) rd.e ::.~ X-98 , Se :::: EYJ1ib it . 9 

9845 
l.Z 

ob · o .. inn , .. c s r i r ec eel apa.:.n t Ad.mini strati v~ l'der x-o8 , 1 .... i 'J i si n ~avin r..c i ved m'"~nt}:l 0f L:ay , l r35 , 

. re UPS~in a reoorsidcratirn of ~is rder. To me~ 

a 1r of ~os~ible·revisi0n of rders X-35 anQ X-98 

o a .ommi ee '"'Onsi~ting of 'essrs. Walton Hamilton , member 

Industrial 2~c0 ery Board, ~illard L. Thorp , Member of 

is0rv cil e.nd .

1

r . Linton 1: . Collinc: , 7\;vision Administra or. 

tentCl i ve draf of a nrou0sed rulint: vms ·9reuerec1 c::r:ch1.ding the 

a-called om'Tlf"r ial cooueratives from the definitinn of bona fide and 

lei ·mate cooJera ives as hGt te r.n 7as usrd in the Ex(~cutive Orders • 

. ~o f0 mal 0rder wn act all .. i~sued , l O"ever , due to he fact th£tt the 

d" is1on of the Sch -~ ch er C<:-s "' r'as !lder ~d before final action by he ... OI!Dll "e , 

Co.clusion 

Coonera ive organiza if"lns se em to ha e become firmly ?stablished in 

'his country . In the aggregate hey carry on a large volume of business. 

Thi is esuecially true in the "."/est . .A. '1Cre COMureher:sive unders ancl.ing 

of t1e s bject :to 10 reauire a s9ecial. stud. 0f C00u"'ratives. While much 

of he ontroversy involved the matter of determinin~- '&" at ~~Jas to be considF>red he ,enuino and legitim£i.te coouel'B.tive , actuoll:r i is believed 

there uas a more basic conflict bet"!een the t·;o me hods nf business. 

i:an~· 0f tl.ie code urovisions crere· desigr.ed to u rornot e the 1elfare of the 

uarticular industry wi h he r esultant adva .ta;;o to all the members of 

tne r-articular industry . This is Darticularly true nith regard to t he 

yariou. oro isions relating. to · ·orices and terms of sale . n the 0tl1e r 

han~" the coo"Jerat i e cuts squBrel thro11gh or ganization. by i r .. dus tries o 

the detr iment of t:1e industry but to the corres:9onc'.ine; a~ vanta~e f the 

u roducer or he consuner or both . -rhe iminedia te benefit therefore o t~1e 

consu;-:~er and ""Croducer is a uar ent and au ")e ars to have be<>n demonstrated by 

he ro11 h of large coo9erati ve organizations. Whet'1er tne coou10 rati ve 

:"le .. hod. is of bene fi to busi:r ess or socie y genera1_1y or wheti1~r its ul tima~~ pff~cts might be detrimental even to the uroducer or c0nsumer is a 

more debatable q'l.estion . It is u robable t~1a.t coo'l') r::>.tiv s Lav~ not d.e-

·eloued o a -vo int 'il'here heir effects on general busi ness cc?n be Tlle<J,sured 

ar..d a tnis stage of develo'l')ment , one 1 s ouL ion is g0verned largel,/ by 

.is basic 9hilosouhy of social economy . 

A ~liminary dr af of a :istory ~f C0n'l')erati es has been rouos ed by 

~he blic Agencies DiYision . Considerable irformation contained herein 

nes obtained from his p r eli:ninar y draft . 
... 1 ~·

c. EXEI•.:PT I OFS rro EJ.?LOY.~;:s III rrou ·s OF L!i.;SS T!iA:LI 2500 POPULATION - --~------- -·-----·..0 ·-----· 

I. Rel' tin: t o Pl'C~3i c"en ' s ~eo·.., ~; lo cr me nt 

A(Teer·10l1 t 

I I. Re:l ,·.tin,· to Co c-e s 

I I I. Ooor•tion ~~c Ef;ec t 

I. Re "l tin~ t o 8"ic'~e _t, s H.eeP1ployment Agreement 

The Ha tionn.l J.e cove r y Act, '~) xov d J une 1 6 , 1 9:33 , :-m t hor i zed t he 

president to ent e r i n to ancl ?·l;i? r ov e vol un tary !=1gr ecrnen t s with 1Je r sons 

en0 e.eed in a tracle or industry :1nd nri t b l abor, tr:1.cle or i ndu stria l 

so '"~ ti ons , r el a ting to ~' t rade Ol' industry . 

The Pr e::> i dent' s Reemployl"Qen t A£;r eemen t was i ssu e d pursuant t he reto, 

to remain in ef fec t u ntil t he ap~wov l of a code b~r t he Pr esident to 

wh ich t he sig na t rn y b ecame sub j e ct or unti l substituti ons of a ny of 

t he p rovision s of t he At ee nt (Pa r n.gr aph I). In par agr aph ( 4 ) of the 

Ag re ment it '·Ia l;rovided .t hl'..t t he !'l a~: mrun hou r s f b :ed in Paragr aph ( 2) 

and (3) t her eof, "le r e not to ,Cl:p!Jl Y to est r:.b lishJ'lents empl oy ing not !!!Ore 

than t · o ·pe r so ns i n towns of l ess t han 2500 :po1_JuJ. ·-1.tion \7hich t rnvn s \7ere 

not part of a l a r ge r .tr['..de .ar ea. 1 

II. Rela ~ t o Co ~es 

In Execu tive Or der o. 6354,2 cb.t e d october 23 , 1 933 ,. it was sta ted 

tha t t £1 e pur ) o se of t he e: e:· ~.J ti oi~. t i:1ereby co nf e rred wn.s intended to re1 ieve small busi ness e11t erp1'ises in s!'1al l tor:ns from fi xe d obl i gn.tions 

wh ich mi ght i n::;ose :-:c ~:.. io a.l l1:1r cl.::;h i p but t h.<:t t it '7ELS er.pected tha t 

all such enterprises woulcl c onf or n t o t he f ·ul lest extent yoss ibl e ~: i th 

the requ ire!'1ent s '.'!il.ich POul ci have be en o her~, i se o·i)l i gn.to ry up on them. 

The .Qrder ·;)r ovi ded t hat t h e Presi dent's Reei!l)loyr!le::tt Agreei:len t should 

not be hel o. to appl y to em~) lo; e rs engrtge d only l oc a ll··r in retail trade 

or in local service inclustries (not in i n ter.st a t e co,-,11e rce) ,.,ho do not 

employ more t han five ·1Jersons a nd. nre loca t ecl i n torms of less than 

2500 p opulation ( according t o t he 1930 :!!'eder a l Census) wh ich are not 

in the im'!ediate tra de a.r ea of a city of a. l o..r ger :pulation except 

that employers who· have signed. t h e Agreement a nd desire to continue 

to comply there ':~Tit h may do so. It was further provi d.e d t hat the exemption should also ap::_;ly to tile same extent to t hose enployers signing 

the_ PRA but at tha t ti r:~e subject to a substituted code from tho s e oblig'l.tions not voluntaril:r assuJne d unde r su cl1 code. 

It will be noted the.t Exe cutive Order 6354 differs p rincipally 

from the p rovi.sion in PRA in tha t: (l) PHA relates to all establishments, the Order effects onl r reta il trade a nd. loca l service indus.:.. 

tries; (2) PRA limits the exemp tio:1 to e st ablishments eTTJ.ployin:; not 

more than t 11o persons, the Order 1 imi t s t h e ~e pt i on to b1ose em:;lo;ying not more t:han five persons; (3.) the f.ormer rel eas e s e::ployers solel r 

from the :provisions of PRA whereas the l a tter release s signa tory parties 

1 

2 

9845 

J3ulletin No . 3 containing PRA, E}:,.l-}ibi t lJo. 10 

Executive Order no . 6354, E:>-::....f} ibi t r:o . 11 
l •r . . . 

- 14 -

,... 01~ P ·L. t to the ~aP'\e extent f· l)f!l .e n ..,. l"" ... . • • 

(\ ligJ. i ... !'l ... !lot volu..11t· rily n:: .... urncd b' them under 

l' r ·.-.u~ . T•C!.''cC:: .. E:·: C"J.ti-rP. r c.e r :Jo . 6710 , approved 

ro·1 i t:. ... "'r!l:' l :>' ,., . ... c ;. ~ - ~"C c nly lc C[l.lly in re tai 1 

c rvi .., ·_ad"';. w: ~ 0:r ~"' rr1.tc not more th--:.n tl ree cs~!'1blish

1f le •·. ::~ar ... 5"' "' · rn t l· t ion cmd nn t L; tl e i edi '1.tf' 

larcer to·· . 'IOulc. be oxem--lt fror: 1 e Pre;,ident I ::.; - ern l~"' ~~nt AgreP (\nt Pn. ~o:c ~r'Jvi ... ions of epnrov ed ,des relatinG 

,-:a,_,es , r--i :i"ln.lm :'rice" of .nerc.J..,:-.di::;P. or s:erviccs ant.. colleca:-scs" 1P.n t::;, c.xce}lt · n.,.of'1r as em:nlo.rr-r"' :ni g:1t "'ignify .their 

i1. c ion to c • ound . 

T' c e::_·L,.t nf the a1 ..-·,nclrrJe:lt :C~.s tc extent' t .. e c· 8rrn:>ti o:1 to employ-

... , .. o O}l 1 '1te .1ot m ::e th :1 :-:ree establi si:unents r~.t'hc> r tl.12n five , 

'1" pro .iC' Pcl u;· t' .. e )revii')US r.der <.;.nd also· to exe::rpt enplo;:,rer" 1 ot only 

frl') t! e ·1rovi >ions of PRA but frou hour , ~a~·e , n.ini1~um 'Or ice and as rcessm.,nt 1llc tion ~r vi"i ns of coces as wel l . 

A"J:lini:trative rc.E' r X- 7:.... d.nt8d Augur-:t .6 , 1934 ,

4 }HC"'Cribcd rul s 

and re ~;u latio~1s relating to the app l ication of ~xec1.•tivc rder 6710 

a d C..e ... ignate:; the " r etail nr loce..l se.~' vic e trade:; 11 to be : Be :ing 

(ret;.;.il) , 'otl')r ehicle Stono.c·p and Parking , Retsil l! 1od and Grocery , 

3.et"'il Jc"relry , :i.e tail 171 obacc(\ , :..etail TraQ.e i:.1~l-.::.c:i...~~ .~ rue a:1d l3oo~c

~Rller::>) , Bar-be r Si:-:op , Bov:lint:: an~. ;illiard c ro.ti:n[; l_llr·tc.,e , Clc a:ting 

am· D.-eing La1..md j , R <1.l Estate ·-rnL:e r ac:e , S11oc Re.otulder, Hotel , n.n::', 

R ::> tau.rr.nt Inc u~ try and the f oll o ·:i:1g indur-: tries 0r trPder not then 

vd.i ~iPd , Co:1fectioner" , '.rilk at ::::etail , Bcaut~r Parlor and suc:1 other 

trau.c.~ or in-ustries as tie Ac'rr.ini" t r·1.to r t1ocld fr orr time tl) time o.e::;i,.-r .. -

·n.o . T. c te r m 11 tr m 11 \7C..3 al"o cl.:fi:1ec~ anr:. t 1e can.:'..itio"1S m1 e .,~·:i c- h 

11 t,.\'!!l" rf les: .:-·n 2.500 ;>opulation11 YTcre deemed to be 11 ir: thE. rre:~edi~~t 

radr a rra 11 of a l ar[,"' - city. ; fanufac tuy-ir~ r; '!.nC..· •hole;;o.lir.g. ·,--rpre ecluded fr0r;1 the OrG.er . L1c met:1 d of relief Y:a::; provi ced fn :· e!rtplo~-e:i."' 

!'lot includ.,..,d in hP. ~"Xcr~tion "n-u.t v:ho claimed tl) be injured from com-

::>e i ti-:>n ')f tno :::.P e v.em·'ted . · :ho sR F. g'l.c;ed both in c•ne of t'"lc above C 

d"'"'ignat~d t a.de-; nr inG.u~trieC" 2...1 d a bnsL1RGG n o t so includ.C'd , .he re 

::> ·~h: C'pPration" ·,ere n ot readily ::;~Lrcgeble vr.e r e exempt only wncre t :1e 

a· .... :: in~"'::>::; 'lV8red by tlnt order co;..sti tuted t nc emp loyer ' s principal line 

a .. d ~ c·~ ·n ci·.1ct on::;tituted mo re t:lF~n 50 ··e r cci:t of th8 gro"'" rral s . 

7 .ere t .. C' ·o,l.::in~:;s ·1ao ::;egrRgable nnl t he depa:rtnent v;}'los<.? p rinci··Jal 

bu"'L,P::::; (a::: atr;v dPfin~"'d) CI)Ver cd · v t.~e tra.clcs Jr i:1dustriP:> enurnera t d ab 'iP .. c.rp 0 Xe!T!}it'"'d . hon pD.rt of ·-:t bu,.. incss ''las exf'mpted t:'le emplo:·P.r ·a::; not li~bl"' fCJr DS"eos11 en to o.s.C'd u:po· t:1c"tt ·nart . Emryloyers 

cor..: lyi::c :it .• c !)d("' 3 to the exteJlt not ex rwtcd v1ere e~ti tled tn c:ic:-

la~'( :·t?.A i :-.. ~ i .;nia . -

.B,· .t.drnini:-t ·ati·1e Cl:rde>r :ro . 46- ln , d..,ted ,.'l~r 29 , l'J34 , it wa~. ruled 

l')yc "' in tLe .. :otor Ve:licle ~ et~il in{:,; Trade were bound 

h cc d r<'L·~ rdlcst of t:.c ~i :re of t: e t o·m in 

·-; ... ic_ - :. ·c · l· "" 0 .r "J."ines:: va .... located . 

3 

II . 

.. _.£' • ._ tl: abo !LQ.rd~rG L~te._~~~:' J,.itt:)._Q_;(.Y,t~_er adnini..siratill_ 

E··ec ~~ i ·,-c ::.· ': ' 671C E:rhi bit ~-0 . 12 

.' r1 'lini ~ 

98 5 

-. -r "- . 
-15-

action. The Code Authori t.iec invcsticated ".nc1. follo ·red un the matter 

of what tmms ere enti tlet1. to the f''~enptions . The United States Census 

r e ords were orJ.in~rilv C0'1clu .. ive U0)0!1 t l e auestion of rrhether or not ' - - he population of a porticulnr town ~:as less than 2500 . Ho:1ever Administrative Order X-72-1, dated Au~~st 28 , 19~ , recited that the census 

of 1930 listed the town of Glast...ow, !.iontana. as a to'\'!n of less than 2500 

but th~t it appearing that the pula tion of that town was then in excess 

of 2500 it was ordered that Ior the purposes of the administration of 

Executive Order 6710 such town should be deemed to have a population in 

excess of 2500. 

Q.1estion also arose as to whether a particular corrmmni ty was within 

the irn:-1ediate trade area of a larger town . This arose in a number of 

instances concerning factory communi ties located. outside the boundaries 

of towns. However these controversies were usually settled without the 

necessity of official rulings. On the whole the exemption to establishments in to~7ns of less than 2500 population seemed to have become operative with very little complications. 

9845 
D. 

I • 

I l . 

I . 

- 16 

Crigi ·1 C:. r 

!:, : • cut i v ... ... . c _. cr.~ ilt i. t -~ Ill v c 0 c' e ~ 

er~tic~ anc :f~ect 

. - eel ... c..:· .;• .. a. ."' tl.· t tc t:c•:. in Jr~ , C' .-:si;:t of t 11o .... c 

r ~..: · r i .c'u~tri s . n.1c .. 1)cr.:ol'l.: Gl'20:1cl s2 rvicc!· ::; 'Cl ~" s · · rber 

.... o·:, cl ·'="~1 c c:-nc d;·eL:.c , ~.otol"" , etc . .A.t t~1e t i ): t;K ~ •. ~> r ov:t1 

of :.rH·e cc··~,. ... , con:if.c-:ab1e .... ')' .....,t ·:1:1: e·;-;')r,~rsec by Yc·" e .... e:1 ?. thr e~ 

of •.. •c l .. VtStriec· r c.1~...r r n ot , i:1 ~·e·· of te~(}i r -~u :r 1 o· 

i!l t~·:1.- :- t .... ~e c .,., :."lC t0' r t :1r :ic t ~"3.1 L"C ur t · L" 1 :t:e cn·r·~ r y Act ·:;J. ; a 1 ~ 1.i c :o1 

T! ~ :::· cu i 'v' or:er a ·rov L . t .. c Co (' _Oj_' t~·e ::_ r · 8 r S' o:1 '!'rrd (:To , ",9[ 

p ·o·:ir' c' t:nt Li..is COllC '"'ilOJ~C not tcc'J, e ef:.e f fec t i ve until C(.rt··.i · 

onC:.i.,i U> t:1ei.'Ll:1 ;:cc Jo r t11 ·::ere ful·-i lle<l , i n.:.;11d.i nc; t he ref}_uir e·::ent 

Cocc .A.uthori tJ clc::it.:;1 'tc thn bo·l.lndc..r i !7. J' tr·r::.e :-tre!'ls , e :.:: t uli !: 

lo :..1 "'..' . 5.ni s r ti vc ~02 ·r ·:: .io such tr . e J.r e:· .. s a:·/ t~- t tl.1e Co'le ...... u t.1or 

...... 0r L:to a price .... t-bi,_ ization ar,r eement h: su 1 tr ·:e a rea rith t he 

Pre::>ic'.t:1 t , tl e Loc.l -= ~cln inistrc.ti le :Bo.::- ~. anc' not le c t:1en 70,; ~ t he 

1 1x.: er of me,. ers of the t r ( e i n sue·:. a r ea . (1) Simi l::.:r.· c : · lit j_ons ,_. e-~ e 

emboc.icd in the Coc:e f0 r the LclU."ldr y 2..rle . (2 ) 

The _,ode:;; :or se r vice tl'a.d.ef'. · ·e~e e;et•el c- 1? inc_;. .. e ctu_1 , e ven 

J~o inc:ustrict L1 y·h.i.ch oc:tr"" ~~;.L...oec01:1e e. f ective . 'Ii.w se industri es 

co·1sic~ o.: :1UJ ercus :;.:.D.ll e:ilte r }riscs. T!e""e e :·ist£. in hie b:ta n c!l 

of i:-1'..:.u:::tr~• ))rob<lb ~r :.1 hi cher ~)c cen 0-ge of one- l!'"\ll c orr.pani e? ur 

\' r.·i::.-:; ~ro rieton ; cl:1C. t::osc e~J~ l o•·i··.t, 'Ji112' o :.e :-1an , t'.ur:. i1~ a n:r o t te 

br~1ch of .i.~d~ct . A~ a reJult , or~aftiz ~t .i. n in tte oe in~ustri ~s was 

'if. ic·1lt . T.·e ne t result ':·:.t.c 'J.n :•lrw ~t comn l ete bre"'.l::c:o•m i:1 co'e 

or.,li·:v· e . A .. 1orc '.et~. ie:: c'c:-cri· tl·:n :1f t1:e co: :io~:. s ·!r e7 ili::."; 

a ... :~a, :.i!~e ··il oe ~ou:.d. i:1 the C(J:e sto ri e~ f or in6 ~st es . 

Ii'l r:tucr to rect :hi e rituo.tion , 2:xecu tivc rde . o . h723 ·1a s 

i":: we::. b: the Precide·1t o:.1 1~Y ;~G , 193-: . It :or o·Jid .d t n;). t .. ~ i)rn-

-ri:::i"'::-!3 L.1 caries of ::;uc~J. se rvice t ~1.cles nr L.1d.uc tries ..... ~ chm .. ud 

tLer\:.D.:fte r . e desibnated by the c~.1in strt r 'Jere r-u,sr ne e d , e.:ce·l t 

:'.) :Je o: :.i 1t L bor , ·.iL imu.1 }b·,.r , i!li;m..1r. Pay 2 ncl L e 1"1Dnd.:-.t ory 

·1ro·.ri::;ionn of Secti m 7(a) a:1c. 10 ('J) 0f tl e i'lt i-me.l IuC.usb·i .., .. 1 

~eco-;e:·:· -""ct , ;~ro i.:..ec". ·.ha.t in an . loc ··.lit· . i 1 ~-:Lic!l 85 of Gne r. err.-

ver: of" < :i~--: te~ tr .:e o· i:1.'.ur-try l:.T'._"..1 ' .. ')L.e· t'1 a biC.e b:r a 

1oc l c c...e fo·: t:!:w.t ::.occ-.. 1i :.-, the w'lL.i s~ ...,cor , aft.~ r a7 r ov..,_ l of 

------ ----- --- - ----- . - -- ~- -- ---- -

(1) ·.-ol . IX ')&{:;e 3';'1 :Go· ,r,cl ol1r~c J.' 

- o.~. C"·C .. e 

(:~) , l. VI , ? ,. ~ 

~~e .... ,.;:IJ. :_-- 0' c.N~ iolt Je of c~ e 
. ... 17 -

In t :w let .-.c r •) f 1.~ec0. 'f.;il c: ;. .~i·)~ , · ri t ~.c1 .. D,. t lw Acll:tlnintra.tor 

to the Pre ~; ic1 'lit , it ,_.,.,,!" ., l·. tc>c' :·. , ,_-~ <:> ~U ies of the o:)e r ::::t.t lJn and 

ef fec t of co·.~'. c.·s .Lor c8ri:· ·;:· :c::--·,r~.C2 Gi' :-... F·~ ''l.nt' ~~ :.tlst:r ies · inc'tica teC .. 

the nece r,~ ity :f' ·n· relie··,· J. ·:· t.~e :r.A ni t ;l e:rCG'"!:· i·re ac. Jninistr"~tive 

ur~en in seCUl'll1£; f1. .. l l nu ·'ort OJ. these oc 88 .., m~ to pe rmit of more 

effecti·re ~.c.~m :i nistr- ti "~ n n1 o th-:: co c1r;~ havL f gre a te:t c ·::mcern with 

t~1e industl·ia l "tn:ct-Lu~e, wl11.ch lwd b;cn u;1d.ulJ 'b:::unrered thereby . 

By Executive Order No . G755-A, (4) d~ted June 28 , 1934, the 

President offered to en tel· into e:.n P..gro er.tcnt ''.ri th Members of such 

n2rvi ce trac.e s n ot theretofore coclifiecl , on con eli t ion tha. t in any 

loccdi ty eighty- five ~)0. 1' ce;nt of the membars thereof should agree 

to abide b~r a l ocal code of trD .. c.le :1rac t ice~ s1:1g e E ted by them for 

t:1n. t locality. 

Executive OrC er 6723, :1-=-..vinc; ~'"',·ovic er1. t}n.t tl1e ~_mi!1i s trG.tor 

shou lc: C'..e sig:.19te the tr;::;.c.~e·. :'l.iJ.C. in0.ust··ie:> iLcL ... C.ed 'lli1 C.~ er the Ord.e r 

the followinG; Ad..rlinint':'8.tive Jrr'c r s 7ere issued: 

Orc.er No • . ~~7, c'.ate\..l H:1y .~8 , 193'1, desipl,".t ing ~oio tor Vehicles; 

StoraL;c &: P12cJ:in:g ; :Eo·, ,l.:.:nG (!; 3il~_ic-... rri.s; L:.rber Shop ; Cl ec::.ning 

& Dyeing; Ac.lvert is :. :n(:; Di spl<:.y Inst ~-..lla ti on &. _t,(,vert is i~1g Dis tributing Tr ~de . 

OrC::.er No. X-50 , r:.hte...;. June 15, 19:·4 , 13-undry. 

OrG.er No . X-54 , date .. ~ June ?.6 , 1-:::::;4 , HotE. l . 

Oi1 Ju.Y)_e 26 , l9~V.r, A.dm'nistr<.1. tivc Orc~e r X- 53 , was issued prescribing nues a:nC:.. :rec,.llDti ns wi t't tJ~;,~e ct to the ~; eratioil of Executive Orde r 6723, incl u -:',i:r.;; t~1e conch ti c.~: s 1m,· er \"'hich J!lembers subject 

to ~·w Orde r were e:1ti tle ~- ;to f.i;,~)l c-w t.J.1e Ilue Ea;le . It was a lso 

provideci tJ.1a t u l '. parts of t.!w Lk sii_,na te;::. C0 (

1

.eS, to t l1e extent necessary, were i :r:. ef: ect for tll8 ·,)-;_:.r·1Jose :· o:: t :1e o-c1ero.ti on of Execut ive Orc'.e r 6T~o , exce·~. t tr: e ·) <.~ ctice ::. ~~- co(l.e ac.hninistretion provisions . (5) 

As prev'i ous ~~ st. -.. ceC:. t.J.1.e :B.:.rber SllOJ; ai'.cL the Law1<lr y Trac'Le Codes 

we r e not to bec or.1e ope!T tl~re 11ntil the f-u..lfillmen t of the conditions 

prescribed in t'1e Or:~.er of ')~;ro7.: l • . At ·.:.he tirne of the above 

Executive Orc.er, t1).ose conL, itions haf .. :1o t b r_'G n fulfi lled , and 

T3)--Exect:.tive Order No:--5'?23 , ExLibi t No . 14. 

L~ ) Executive Orc

1 

.. er No . 6756-A, tY..::libit ~To . 15 

(5) AcJ·ninistra ti·re- OrC.er ~: ')::.> , Zxhibit No . 16 

9845 
- 18 -

·s ·· .· ~;.: n effe ctiv- . _ e J c'..:.i::-ist:..·.ntivl! Or d-v , 

... at; sucL ::r visi .1"' t>.r. c t i ·J\:: f o r t :c ·L·rlrp'"'se of c..n -

•· _;:~.;ct".. i -, r _r 6'?2 .... . 

II~ . 

:::. c :;·-.;cuti c O!'d .... r ~ n · t :av .ably r 8c .... i ~c by t h: .... trade s 

nd tri s affoct~...d . C nsi c.ero.b l \0,; off.:~ rt had ~ r "-'vio'l sl y b c.Jn 

-.):tLize t::~;; s_· i :1custr:.cs r. :i. c Jffac tiv l •. .:e..ny we r e •. .mde.nv .·i~g t os abli sh mi n i r:um :::..,ri ce Jv i .. s . A se r i e s o f C,)nf t.i ~ nc 'S .7~;;re b L J' l ul d i n •a ri us -..,e.r ts '"'f t~:.o Unite d Stu t vs Hi th 

:::- vi-''7 !)f rcmcdyL1g t'..: b r eal::io\'"1 i i.1 JC~"- c crmli::u c e i n th ... H t .... l 

Industry , "'.. .L~ ~ m vm ~.nt YlE'S -n f ... c.t to vst ablis 1 mini mum r a t es. 

mhe Ord .... r i n qu"'stion , o: c · u r nJ , nul l i f i ed e. l l "'uch e f fo r ts. 

C de ut r i ti.as i n th L1du. t ri s affe c ted ·· ..... r ... , 1 1 ~ffe , 

"'b lis ..... d b:· tl1 .... Order. T' --r ... \7as , t h.Jr ... fo r t. , Ci'ls d.o ~.bl t- l~ <J ~..>: lt

. n t f r o ... t .1es0 nr_~us tri <::::s . 

n Ju:.~ .a 20 , 1934, the ~xe ut · vo Cor:-mi e~ of t J.1 ... Cf)d"' Au t h· r -

i y for t1 ..... Cleani ng o.nd Dye i no T1·n.d0 c t ~ t 110 ?r0siC.0nt 11 th"' t t ' is 

C c Au "'1 r i ty conside rs t!w t the caG.c .1.0:. h.J I n l'us t r:,· \"ID. S no 

l ne, r i::. f::>r co a:.<l eff..,ct wi th r e s:;_Je c t t ::> nw :·f i t s ··:.·ovis i -:. ns e.n ' 

hn.t , s::> ··ar as i t '1'-1-S \7 i Lliil t:: ... i r )c..·;-er, th .... ~n tr.> t h is code 

i s th~ aby Ji ti1drovm . "( 6 ) 

0:.1 Jt.'.....1.~ ~6 , 1'934 , t :i.3 Acl.I!!i:1i s t rat a · rvp li ed tha. t :. s~ucn a s 

:le aclmi::.istrati vo pr0v isi -~1 S .:f t h.J Cl ee..:.i n,5 a n d .Jya i . c -de c:·e 

su~~) .. ndec~ b:- 3;-:e cu tivc Ord.Jr 6 723, b1 .... Ccv..c; A-o.t hr r i t P.ut i.L ri zcd 

unc:e r such . .., r v i s i .: ns ilfl. s I e cc o: di:1::.) Y, su ~) e:.1..c.ior'. a n& coul ti. n -:- t I 

t1~r ... fJ~v , ~ tha t m~ , b e deemed t c b o ~] ntat v~ cf '~ t 

T.aC."' ' :.· h:'ve auth..; i ty t'J a c t ;)rl i t s b -::h'll f , hone a t ! ~ a s s o· t 

t t.:.i s CvJ.e coul cl n t ba :d hd ~.Ym by tll ... t, boG.y. ( 7) 

?ursuc.nt to the 3xccutiv ... Orde r , l c ca l ~~e s 1 ... r 0 submitt ed b~ 

tn fe l~ ··ia~ i ndustri..:s ancl t r ade s 

Cl--:a.1i n; and D •:; il\.:o subr i tte:d f'.:')~) ~' )X mR.tc j· 54 l o ca l code s , 

!l~arly ·~1 1 ..... f Wr.icn CJnt2!:i :nvd pr'.'Visi ons f r ra ini mum p r i Ct.. "' • 

Si1::>~ .ebuilc1.i1:_. Industry submittoc, 2 77 l o c£>.1 code s , a.r r 

all' of ·•!1icl... c ntn. n~;..d ·,)1 Jv i n s for mi n i mum p r i c e s . 

:O.nr'o r Sf:o:;_:> I nci.ustr;'/ s·.1bmi t t ed 277 l cc"' l cvdcs, P.ll of 

··;:ric ... :> nta ~d requc; ts fo r mi n i "@urn ·nricc s . 

( r) Cop:' of tt ·~ r fr J I C..-c Co:-rmi ttcc 

9845 

. ' 
The :·"'Olic,,r 8f i~~~~ ,.,~ .~ :rot ;;o ''lJ"'l'O'IC :1 ro·ri~i .Ji!S for csta'olishL1t; miEimtT1 ~""rices . ':l:i1e ~ef n:te , o: l o al C')' C "' G".lbmi t t~c.. , tt.orc were 

a l'"'ro·.reU. OJ'll;} four 1~1 ~x· s:·.oe Re uilcl.i:w ..::;~( t· ·o inCleaning "'T.Ll.Du·eLl:: T" c~c . 'J.·Jc co~.. .cs ;rr :C'JVt.'- Cic.' ·:2Jt cnnt .-L• minimum :•ri ce :0 rovinions . 

(8) 

Si:1ce L1c Code Authority v·as tlw e:':lforceT:'lent ns vtell r,s the 

aclministretive ace::.cy of im~ustnr , the clii·lin,). t i )n of such ·,_ot~. ics 

rerulte~ in still ~reater disr6c~r~ for these co~c provis~"ns re -

mainL'[.., in effec t, i . e . , ln:uor J rovi si0.2s . Coc1 e enforcPr'.cr..t in 

tl.1ose tr ·" ~Les 01~ L1c' ustries 'lere 7 i rtu::.l ,~c a'tJ3.!!(onccl rnc.~ non- com-

:pli2.21ce 'oec(;;.]:1e c·e::ler,11 . T::O.is ri tuD.t lC'il continue( unt i l the c~:J.te 

of t~ e Executi·J"c Orser suspendi:11,-:; ~~l: coc'e~ . 

(o) Se"' 2..l so c~~-te r IV of II . c;reoT:e·. L.f un:lel' SE"'cL.8J1S 4: ( a) ::l:"LCL 7 (b) 

of~~ . I. :.:t . A. 11 , b :,r C!'"'st o1: A. Giblin , Acl.:,ti:1istre.t io•1 StuC'.ies . 

9845 
0 -1!..'( J. 

•: rc.Jr 

- :o 

ant -:ffec t 

Sri in oi Crcler 

.A:n ,~:pJlic·.ti·n , on be:.al: 0.1. t:~e :~os)i "' soft' e 

'Gni ted St ter S\.t"i"JrTt eC:. .... :1....bl' c subscr _ _) t i,.n r-r enJovr.;1ent aad not 

p2··c t"'d for ~) r fit , H£.s .. l<:rie f''J en exetn)tion frv: ,"ny Cocle to all 

inc~ust·--· or tr cle .e.:tber;,:, ' e: ct.e~lil1, ·,.ri t:. sue.- . \...\ni t a s . As a 

result of sue:. ~-•)lic~tivl: , .'·w,_nist i'-.t .L VE.. :~l' .er x-.-:1 naJ sigwd 

by :u,;.. S. J o.ns0n , .'dMin~.strGt::r , U.)c.n ~.e r COilll:lc.v.::-. t L n of 

. D. ·.;:.i tcsH~.e , Jivisi h Aduin.:.st:.·c.t ~.> . 

II . 

( l ( ) ,., -:> ; ~ ·U '-'- ... ~ r 

J·n.J.~rr >J , 

T:·w essence of t .. e urcLer is o_uo t ed c?.s f~llo·.;s : 

11 ::t is ~.ercby or t:e r cd t :.e..t e1ose li'lC":lbors of 

ind s tries s-u.bj ec t t c e ccles of Fai:: o.·-~•eti

ti::> ri.c sell orr ay sell su)~Jl~es or .. 12.t eriuls 

to ~lC ~~i t e.l s c.f t. _e Uni t ee. States ·~r..lic:. urc 

su_;nort e, OJ ~)ubl i sub sc :,:i·)ticm o :,.· e1.d· \7me.lt , 

~nd not O)er·te~ f r ~r::~ . oit: in t~e limltations :.e!'i.Ln~J-t.:>· _)rovHlec~ .• be c-11l -.e~- C1.re 

.. e·:eby exen~)ted frvn C" .1~Jl.lan e v. __ t:·_ 1r :: v1 sl:.>n<1 

of st:.c~. code s ~') in~ sn.les , ·1 c:ir~e:,d , :1"' ,_ 

ev er, t:.at the e;.e:·'1:9t ic..n :~crl;b~r ~. anted s .. a.ll 

~e limi e~ ~ an o)e ~ti e only in co1nec tion 

-ri t:_ s-u.c· _ sales .:1ade 'uy suc:1 m.~!'.'lb er s tc suc:1 

i .sti tuti vns . II 

.,.,u.rther :Jruvision m.l.S .,":-lo Lr :t t:: tp\:c e:ffec t in ten 

unl css ot:.en .1. se !)l'derer'_ by t: e '..-:JnlL i "''Grator an.: was 1~ t ed 

1934 . 

o dcubt t:.e ~ ~.: .. r osc o: t 1s or.-~.er :Jas t o r l1eve c_:arit.-.ble ~ ,..s_l als from a.tr~:'"" _n t:1e bur-le:t1 o~ nc. t ional recovery and 

t ercb- :nc1 '"~se t.e usefulnes~ oft. e fund.s 2 t '~ei r dis·losal . ·:ovte7e r , t: c :>rdcr .Pd scarcvl'.J· been s1.wne<'. vv'.en c'ujcctions to i t came 

:lO r_n_, int t: e ·- .:..~.:,se ,nJus t_ le~ ::.~.:; ylns c:> E,el~· u·)on 1os:)i t al 

rr- e aJ ~ .,: _c_ 'H•:e oper.:>.t1n.:::; unde ... c rdss or t: .. e P!t.A. me.de objection 

. 19. 

9 :s 
on the c r m.DHL f .r' t t:1ey COL 1 ... :. t qel. l b elow es e..o lis~~ecl ::? rices and 

C n-Jly '1'1' t ' t'' ., .. ,.- -~ - "I ··lt" "'' 4 01 .• 'l' -,<. c r ·;) )~ ·- C" t o '1t;J1l''"'S aVId W"" a-er -- •. c:.- _ -~-t.'.t-! .. _,_ u .• -. • · '""' r~_.~ ,J,-=> 9 1 _. , ~ c··b "' ' 

As n. ro su, t 'J f L::. c. st. ·_n \~ ·: t .: , _\. l_.:•i ~i 5 : t r'-1. t i v 0 Or cler ;c u~_ _ was is sued_ 

:i;'ebruary ' : 1Jr:;_ . "3;/ t::c t.;1~. 1:_; ~;: t_,_a t ·~.rrler , t. ~o )rGvision s of 

.Acbnini tr ~t t:.'.. ve ~ J.'(i e r Z-•:- W:!. '~ r./0:'~- .:. cr :.-.. _._Je r i. eel of ~·-ir ty ~ 3Q) r1.ays 

from late ci' X-G to C:, i.Ve G.~l'-3~;,_1_-;:. n.t~ ·:1 tr:. t .. 1c ;ojccti:...ns macle . 

Tb.e r rlc r res~rve~: t> .. o ic;~1 t ~' t .te il/L;1·i. .l:;.:d:.rrvl;or t -: sus)encl tl:..e 

efff'l ctive da t e t:_e:reof by furL~ .J r .rc:.::;r . 

In ~~e )eti tion or brief]../ , d2.tecl lebrttary 26 , 19 3~'.: , and 

~J rc se. tecl on ba~c:-lf of L e X- ?.ay 2.n c Electro- f.ie(icc.·l Pro c~ucts Grou.:;s 

of t~:e ~lectrica} :p_nu__factnri_ :r.~b Inrlustry , a ~J 'Jte st was ;-ac>dc t J t:1e 

Sto.yin:· ()!' _er oi X- <': a:.:-.. d t: .. e co:1 ti nu a tion cf X- .(, . Tl1e f oll o\'Jing exc c.;r _,ts I r ')m tl1at document secrn t o ~i v e e. pi cture of on~h ti on s d:u.ring 

t~~ e ~le !'iod cf x-s: 

11 As soon c-.s it b ecn.ne lSenerc:·.lJ.;;· known t:1a.t 

('rde:r x-.-:: , d.~ted Je.nue.!..~y -~ ::_; , 193'1 , ~lc: .:i been 

i ssuacl , a v e r y m~rked .._'_ e cre&so :n ':Jusincss 

oCC ll'recl L1 tiw X- Ray c::.n". ~Uectro l.:erh e:.l 

GrcJ.JJS , due t o t.:.-'.e .C2.c t . t>e t _e l-;_ ~:!i 'Sals 

o:f this C)untr~ clemo.ncleo. exe1~1) icms from 

t:.:.e cc.JJ' s fc r L .ei r )l.. .I'C~ '-A.:'es ; since t :1e 

i r:s c~nc~~ o~ t· -_c StEJ.:rin,_; : rc~er , 2.1 1 or:~e rs 

of c·u..st :.r!1e rs '-~ ve been >el '. in · abeyance 

~;e chn-:; :~e fine.l d0cision .:- ... 1 ~1 s !na.tter. 

Th;_s ta ~ation iil bl' .. siness Yvill c_:ontinue , in 

our opinion , <-:•.[. l on.:; as t:.wre is en;>-" la~' i n 

d e c icUn,:; \'?~,_e · ~e r t>e ori _)-- 113.1 C• rJe r ··~ wil l 

b e a~ lo·.~.re l t o oto.nd <., r rlil1 be ~;e manen tly 

wit-::1c:..rc.'.:n . B ... secl on ~.1e antlCi)c:-.tioE t l:a t 

Orc3.eJ.' X- 4 will be al1owecl t o r e.,r.in ~ effec t 

a f t er .Ia rc~l 5t:- , c.ne ~w s~J i t .::-.l i:1 .3al timo r e ~las 

al r .3ady c"Lei1ls.'1ded of u.s <:~ 1 5,~ cl j_ sc:o'lm t ·.~ n our 

·_;_J oL.u.c s w~1ic- : i t [>.. __ tlcJ_~-v;~tss :)1 .:.· :-~c.:.~L1Q' . 

~~ e are no lont:;e r :_n t re sterl in a furt:1e::.· st ay 

of ~.:e :.d inal o rder and. :_,e r eni t:._ sl.A.bmi t 

fac tu[.l ela t e.:'. vLic~- VJC know will furni sh sl.1..ff i.-

c ien t inforn1at ion t o war r2J-1 t ~·Le ~~ RA. t .J wi ~:

clr aw Gr r

1

.er ~~ __) err;'\.--::.nentJ.y , a t let:.'.st ins'Jfc.r 

as i t r c la t e s to tl1e X- ].c.'l] and. El ec t r o-Ledic a l ~:> cJucts . 

2/ See EX.:i ~ t No . 20 . 

3/ T'.c. i s do cumen t i s ril ed in fo l der ma kec~ 11 Di vision VII:i: -

~ari t ab l e I nst i t u.t :i.ons - ~ - S. r· . Prin c e , Jr. n 

98~5 

2.nd a t the t ine of t~'l s wrJ. t '3.n ;:-; i s in ~1e c·.lst :J c1y of 

~ffi e Lee Locre , fcrrnel~ly .Ac tj_ns Execu tive Assist an t, 

:Divisj. on VIII. 
93<.5 

II • 

.. e 

t .. " 

t.·_e , 

ft.r .i. t 

1 Jt: e 

·: . .n ee 

.'!.U.VC 

- t.2 

,Je t ~ t e 1 te1 t.i01 ·,c.~ of 

o.:. (,l':el' • ' s co,. en c::.J 1 c:; , 

ittl u~ uct c.n .. o~t .n·. r::-

uc . ._ · t c c C::\.1. J )~Y in ; f oe 1

. , J ><.., , 

c , lL.lns , c. t u L_rc.; ~-,j __ .~.~ t; 

i'Lc. s 'Tv.rc .. . secl. uJ .t"S) t a ls eo. c~ 

.f ~r . .:es h ... ttcr nan·"'. :;n .. b ... c.;trie·~ :MJ:)' 

-inl .it ~)o ssible to r;ffc t~.e _ 0"' 'Ji. t c.ls 

s "~e Cit.' ~·.1c;co t "' on :Jure :·~"G'' , bec -;u.sc 

t oj,r t tc::.1. s<.Je. to ::os·'"''\.tc:lr ··re net. o:ce 

t .. Q.n ) ) or 10; o; t- .c totuJ s~ es e>l s ~. I 

;_ :c1 :tsL-es.· It l<' •nor · .:..,nort c. .. n t t ..... n-te 

t .. n t:1e c::t e f t ~e X- -:l[).y an· _21_ectrc-

::eclicc:.l Crr ouy:: cf t'.u .,.;,:!.ec t r ica.l · :anuL .. c turi:n · Ind.·st j , Jllr s~.les t 'J ~·o ·;it,.ls is 60: 

of '.lr J s·.:1e.:;~ r1 c cl'Jsely ::lliec: ... e c r 

sales t o Li.oct:r s ·::>f ~6,~ ad.d1 tJ.--.nal , t~~us 

C"' t .Lr:Q fo all but t; or "'Ur salL;s. '1~e

fore , \/8 ">resen t t:u , b::1ef , asl::in._ t.:::tt t .. c 

,n'"'l U1 c...C turel'S of ~o.y· ... 11'- ..!..lee t c - ::eG.i c c;.l 

?roduc ts be exern)tcd U.'1uc> r : ... - '-:: . 

* * * * * * * *· * * * * * 

11 11l~e r t.e t .J!'l.:l; o::' t e ')ri__,ln"l rc'.3l' : v1 e 

fP_il to see ::-_ ,-, our 1:1a11ufaJtur e r 3 con clifferentla'Ge b tueen sales nacl.e to rny cl a ss of 

•• ')c::: i t.;:ls , clue tj t>.e fac t t.~at 1 t 1s <.h .. ost 

i.:;1 ssible t · c,_cf~ne t:1e so ca~lecl. t ·pri· ~ 

· .. o ~_Jl tc:-u 1 or t: .c. se ~-n t>)i 'GD.1.::; "! i c __ a r e su. _J-

::?O- tel'. o · )l<.bl !.C <>ubsc r l:.:)ticns c..:1.: enc~o ·men t s 

e:n. not o.:.•el'E' ec~ :i:1r ~IT. fi t . (;;,; a~1 ex<:"'..i<"'lc , 

L1 t' t:: C1ty ':f Jc:~t .... lc , e.l l :1cs_J1 t <Us r ece .... e c. S(;t sum ev ;:;ry ycc:.r f r o ... ~ .e St.::.te :.f 

: .. ~:;.·;y·lanu. :c f r --r:1 t:.e Ci :~ ; .Jo ... ns o:p:dn::: 

· os:Ji tal receiv es a. ver· su"'ust 2.n t:-.al SUI11 G<. c~ 

ye .... r ..:ro.1 t ' .. e 3tate . '.11'J t _:er ir ..2t2.11c e 1s ~ e 

:-,e ~i _r S) t al J.ll ·~ ookl.,m , :~8>.' Yo rk , \L: .. c· . 

.:.. s run fo_ n·o1'' t ::nd , ::.. t~ e Jt.'3r -.c:mf. , receo_ e. free ... J;1bula.nc c sel'"V icc fr : t =.e 1 t } 

of ~-c., Y'1r:C , )aid for b~r t'l.xes . , 

* * * * * * * * * * * * * 

11 Cr: •r ::- ·: :tCl...t:es no st ..... te .. 1ents ... s to <L et .• er 

exc .. ) tc' .. cs it ls incl Ll~e t: .. :.-::e =--.s)i t als 

SU"~) rte·'. bj t-;..-..:.es . ·,7e "'ue1.::.ev e t .<'.. t t e:r a r e , 

an if n t , t!1c C!'c~ e r r1ill soon ::av e t: be cxtc 'e t inclu.t'te t~.cn ** *** 

11 - OU co t' n t:. . m '.r.i.ses cS to '.'! .et~.0r t .iS 

orc.C'-' "10'1.'.: C. L t so_ n "Je :· rt __ e_· c;_ te:1 .e ,_ to 

e, l.~n .... l ·nst::.. t ti ~r , tax- su..:J_)or t e-. an 
- ?.3 -

ot'.er,·.' .re , y:_ :•. c .. usr X--1~~, .::'11(~ ::;L:;c tr0- , .. ec:i.ica l 

L · L ~ ncn t . 

11 :e ·'e s 1ectf u 1.1y cc>.l.l yvur ette:1 t j on t.:... t ' t- fc.ct 

t -p ~.:; Jl'rcrr X-·.' c1-e:3 n J t ~)re ent ~:<1 rc' :.as n:., b,/ 

.. cs >j t _ J s c-.n ·. t t:;J.. .J.' l0''ell in·; t ··, .) ~.ers . ·:v8 

1 n::nv t~ LE. t cu.~.- .:;r c WF c c.n ~K t Ill<? ·. n t ;.ln se 1

. e s tc 

~~-~ ct c, s on :puull s~:. ec".. •wicGs r:it'.in t~1 a C.Jd.e 

re._:t.:lations ancl a t t >.e s~.>-~e tin "~ 'h'J J. t .; ::os-

_?:,. t ·:ls \7it·. [' t - t zl_ o·sr ·:J:-,~::. C ?.S t SE ~e·-: of 

all exist .... nG cedes. Je ·ool i.eve t~·~e ·lr) cto:cs 

rnll natur::lly __ nrc>c..se >l~ou.g l :'-~s~it~~s or 

c'l.e.aPJ:~~ erru.:--1 _) r.1ce s 2n •~ t' at woul·i br:'.. ng 

.•r co cti c<..l1:. nl l of e;ur b·.1 .:;1ne ss 1m~.:.er exem·,?-

ti m.1 f ::.~;;m cc. le s on sr.l e s . " 

e ·.ocu:nel t '""res en t o ~.~oint out t:•.:at t '.) per .1i t ~10 application 

of X-'-= t c: t.1e1 :c 2-nc'. • ~ t1··1 'i>''JUl.J.. 1 e."Ve t c, in ".. i vic u::U. manuf2.c turers and 

venc"co r s ~: a r:.r.;:_t t o (:e t crminc:; Rh;t .. er :·· ny ~ os:pi t aJ. wE:.s c r wa s n o t 

vn ~~in t >.e J~Ie of L .. e orde r , t-1.ct it Hcu:'_cl. :oster :p rice-cutting and 

<h s criminat j.on a n-l o t :.:.e r un:foi r t:..: ~ ~e ~) rC'.CtiCel". 

1·1 res·_:~Jnse t ..... t :1e vit,·: r~::J.s )ro t 3st s ,:1acl_e , Arirninist!.a tive 

C1 de r X-8 ~/ was 1~sued , Lc::.r ~: 3 , J.9).S. . T.lis or er rae.de ·)ormanent 

t :1e st27 crec..t e•'. bJ X-5 ns c.· fa::.~ a~~ it affected. 1e X- Ray ancl Zlectroi.: adicl".l App~rc>tus c.s co ere~.~. b~- t :.P Jode f.,!' t~ e El ectr1c 2.l I.Ianufacturin.;; Industr ' , :~ e Scient_f c A)parc:.t us :L ncluc l~~r c;.nc. a ll otl'~e r 

in ·lustr.i -.')"' t: .. c:.t est c>.bl)_s:"' e r1 t :J ~1e sat·i_:;.facti cn of the \c~,:Linis tr o.to r 

t'.L'.t a sube ~<'l1 ic.l ::;·o.r t of t .e-Ll' su_J_:;,lies or i11c. t e ric>.l s ·.1 erc sold t o 

~~ s~•i <' ls c r.. Ve l'1:::C: bJ X-~~ e.l1(. al s o ;,at:.. d'ied ~1e AC:ministrator tl1a t 

just e re:r ~. ec~ t' e rcl1e.f L.:r .-:-.;._ t0cl UJ' ·Jrd .~ r X- 8 , T:._i s Crde r vras 

si::;necl 'G~ ~-Udl S . .;c_:n-==o:l , ..:',ct.IIl.:.ni tr:-..;. :c ~- r Inc"..'.l:: trial :::tecovery , 

u ·;--.n ~.e reco -t1.r:nen 'l..:-:.t iGn of .d . J . .. :.itF sicle , Division .Administr&.t or •. 

Later it was e stc:tr)l i s_:.ecl. t o t .o :?: .t F ·i ac t icn of t_l e Admini strator t ... .- t E'. SL'.b st~ ...i1tial _:-x.r t of t._e su __ J_•lie 3 2.nC. ·i:c.tarials f ~1e 

si,::,n .:::.l li:-11 A' ... ~,E'~:..·e u.s Sub ~.i .· _s ion f t: c~· =::1ectr1c ::..l :,ianuic:cturi:-<:; Ind.ustr~' v1ere soL:. t o ·_c s·)j_ t a::. s of ~ e Un1 t el St['.tes SU))ortee. by 

public s· .. ibsc :.~)tLn or endorn:.:en t -c.ncl ilCJt o)er c-.t ecl f e r y rofit , a..YJ.d 

U :_)Ol1 t l:is i in(linb Ac'...:n· nlstrP..t i v e c:~cle:.· x- :24 j/ ' insuecl A~Jril 21 ' 

19 3~ ' !?t.-.:·ed. :_:J ermane~1 tly t. :e t e r .::s cf .--~ in sc. far a s it affected 

t~ j_ s inclu s tr~r . 

rl.mi ~1 ist::cc:- J. e Qr 6.er X- 39 ;d W[l.S it!S1.1.ecl Lay 28 , lS:34. T~ is 

c r ·:-:.er mccl:f i. ed. X- <: so E.s t o crL~ 2.2 e mer,1b e rs of t_ e B~ tuninous Coal 

InJ:o.stry , e ~7 ·::1 esa.J.e Co o.l rn~_"..uc- ~r-,.r enrl t: ~e =:e t 2.il S('ll id 3' l L'Lr':u.stry t ,..., fu1.ly c ::(,_J l~r vvit"~ t-~" r e quL:er:1ents o:L Cc.al C='d.es in sell-

{./ See ~:: . i b!. t ·-.... 21. - . 

=·! Se .. 7 .. - .!J J.\.. i lJl t l:o • 22 . 

§./ See EyJ:i bit ~0 . 23 . 9845 
- 24 -

.. s it~ls . :1e rlcr st a t e'. :1c ~'"'Ol O"-' t "' i s:m" .. L;e 

j c. c · ad f .!.l c ... t t.1 :..·cvi .... -l.. of ::- _ by . e .. bc1· 

"' ... t t·.t · t :1ad. betl• e,...t· ":Jl'.s .• eci. t · e .c,; t _sfe ..... ti n of tr tor t ··t ju"' t i c "' ~ou:re·l t '.c .Kc:..i.fi ca ti on • 

.. cticea 1 ''..ut i.'le r c i t n.ti > 1 clau.se 1.o-.!: ~ c t ar '' t: t a 

1 _·n·rt o.: cir su _ _.') .i.cs o:c n·atc ~•·.l "' r C" :..~oll t o sue 

~ ~t 1. t in t·.~ St <wJin ..;_ :u~e cf .:- 3 . 

...... e rec rcu· s: ... o '! t: < t ind ,_ t:.7 .e 1"uer:• ;; · :.a ,~ ·i,lc r '1ble 

c '.ot"_:>i tal\: [!r., .rc r c subjec t t o a c. e c r ... P ..... r:i[!de 

c · j ec tion t...., X- 4 L s-.~ f ..... r , s .!. t 'fe ct cr1 t .. . cir i n u"'-

tr' , O'Cc:>us .l'Ct, · r "io..~_:teCl. t:-.e.-.1f r_, r,_ealin..., 

·:it. os· · t c.ls. S1.c. c.r: e.~.·_·eci l'et"tl t t•'1 .. .'r o 1 L")tt ~ s r ef, sin 

t _e,l ·:it:: s·c:"! .. e.b.;-r s w.:..t.1o t r>. su stc.>.n t .. 'll r e·: u.c t 1r. ir. .r i c e s . 

In c; c:e ... -~~ e r 0 .. e.r t'r c...i :: ode r~:fus8d t_ !'e' .. ce _- .ce..:- t o 

~c..lcs r:e:ce c .. l!n c-t ent .. .L·ely curt c i led. , :_;en·".. :t..:; r. l~e

.H.,:.r. n, ~tr·_ "ll' 2. t · .. et .. ; ·-.r· n-c t su c~- 'nclu str;,· 

. • c.1oe S:. ul CJ ... ):!.J \7i t..L t.1c ~n ovisi ns of t ei r ~o·e . ·1 . • i s 

co . it: !l br ·,.r!t "'bout c oLs!.c,_en .ble C•). f•t~l • c~nc8r.1;.l~ J t' . e 

:::rder ~ : r l•u t .• e e~rly :~·r .·~ a;. t _J.' i.ts iss1.-..['nc e , \'( _c __ ~·:2.:.> t ') 

'3. r ~t c.:tent rr ct e~~- ,)'.i .dm':.ti~t "ltJ.. -., J r ... . c.:t·s :·- ·;, , :X ~ ::- ~..l 

"'-- 3 1 . 

Ccnclu.si Q.S 

~:.e r ec or • s i r.(icc:-.t c t: e.t t .1a c~e •l'G::.,sL n ·.a_·. br"u ... -··,t 

!'>bout a ccr..clitio!l ·Ler c ~.e nUJ.ber of _1c~.1 e r r.nL .n c "" ~ole 

~csLtr izat··n ·n m() le or in •. rt ~C.. ~..a ly :.nc1·eaved ov er 

)re- .e)ressic.> t ::. •.. es s:...H' t:.ct lL:eH· se t .c S'l~,s cr ·.~1t ·n. t. n ..:: , onc.-

ti :n. to : r. "'~),tal r itP.d e?. ~.ec' ·1. :11uc.~ lo-.-J-.Jl' l "v el , L.' s ·}lec i ng 

U)o. t..e ,·!ou.J.G..er s oi t:.e ins'~i t u t .i.. .. s t burC.en ·c.~c .. t. V:' ·:1er o 

financ iall~r unab . e tr c a rry . ') !!1~ e t e ~ ; c:. ~ 1 s ·:.::·c .. <:' se 

su"Y). ie3 et t· (' i--.c r ..:>c..se ... ' )r~ c3 c aured 'uy t .c '\..e~· r..n(l. P::t.A 110'..: d 

bu l.'e ·,ce t.tl .. !' e..b ... lJ.. t y t o C?.r:.y t" E:' st c--.clil;r incr·~<ng bun.en . 

T!.e Arl..;ti .istrativ e "' r der X- 4 .c::.c~ t .e e.,fect :.i distr i"ut:n-: t .. i s 

"uur'.en tl! •. o!..., ind.uc- tr, ru:d bec.:-.use --.-: t .. is :r-.:.ul t t ::.vs e ::.ncl e~ 

·-,: .st3 :.1 j:.r )rod.u.c ~__,n .,,_a. utili zed 'bj lws_ it."l- He ~ ,- en relief f r ). t .. e or ·

1 e r . · t : t ".ece l.,st - ,;e!:tic'le· 5.nc ..... t :·:.e'" oe i n._r; 

exclude .. ~. fl·r;m ·_~:: ;...·ov i ions of X- 4 , t :H t ,c rtl;L of t .• e c· xtra 

u\.Lrr e 1 of t. e :.o s_ i tr..l s VJ.".. • c~1 V/3. s .... t ee:. t n .... , ... , .u~ l ' ,_' r.ra s:p.::ead 

'!lCr.._, :i.! "u::; ry .. embers \7:.- >e ~r~~- t aj r .... t./ 0.1.' "t: l e::, ·;/e!' e rnacle i n 

c 1 f r. · •y tc code re:,ulc...t.:.ons. 

98.5 
I. Ori~i~ of rdcr 

II . ·zp-,c,::.tive OrdG:;.~ "tTo . ~S.:16 F 

::!:I . Proc -:..Cllre 

_ V. S'.:unra['lr• ~ of .h.d"'1inistrati.on b: ~ Labor 

D.}uartment 

. ' 

I. Ori~in of Order 

Tll? Cr)Clifi catinn o:f' ind'lst ry ur S8D t eci the u r obl em of the effect 

u·"'on t .1e co·jtinueo. ~rm loyment nf uersons h<:>.nd ica"9"9ed lJ ,r -phy sical 8!' mental 

~fect or by reason l")f e..ge or rther infir:rni ti e s . It can rea0.il r be s een 

t hct a rni nir'lU.m wEl.o;e ~ _uireT1e::.t mi.ght result ir. the 0is char~e of t 1o se em-

·;>loyees "fTho by r ec:.son of such di sabili ti e~ · did ·:1o t me.-:;t the standard of 

efficie~1cy required . .T~ .is ..,<:'~~ sooD r e cog .. L7~d . 

Bulletin "J-o . 5 , contaLs L1t ~-::> retD :t~n : tl1e Pr eside n t's ::=:eenroloy-

·nent Agreement, Inter-or e t atio:1 :o . 21 , are.gra·9~'1 3 , being as follo•7s: 

"P ~r ';'nS -r.:"S: o c::re l L!li ~c . . Ln t~ ·ei r 2c r .1ir-.g "90'-:re r t hrough 

ph;rsical' '.or mental c3.efects ~ e.,~ e ':"l r ot:"ler i nfirnities may b e 

em-;>lOJed ();_} light dut y bel on t~1e rf"lirlir-1l..1.i11 ···a.:;e set by t :he 

PresiJ.ent 1 s Agr ee:ner_t, a:no. f'r. r lo·fl~(;e r ho,_~_ rs t ··1an a re therein 

authorized, if the e;:r.Jlo-·e·.:-- ob taL1s £'rom t:1e St<:> t c Labo r 

coml.'l ission a certificate autho:c·izins the e:n·oloi .. ::Jr..t of such 

c.efectives in. such ma..nner. 11 ,. 

As code s su.verseoed the PJA LLe au sti 0~1 was -)reser. ted as to ":rhat 

$\:Up::>os~ tion shoul d b e ·1ad.e of aut ho ri ?ati ")::.s to os:.f!9loy hanaicap··Jed \"70rkers l SS0.3d to conce r ns ,.,~!en ~1ey rre r e UI Cle:;:· P:a.A 2nd J.UJne rous request fo r 

advi c e 'Tere r ·3 ceived. fr')m s t ate authorities desigPatP-d to issue ~1ese certificates. This gave rise to the issuance '"' f "Zze cutive Orc.er No . 660 6- F . 

I I. ~::e cutive Orde r ·-o. 6606- F 

This Order ''ra s signed Feb r:uary 1 7, ' 1 934:; and r e cited that a quest ion 

had a r isen. or ..~ .g~ t t ilereafte:: arise as t o ~het:1er "the minimum rrage and 

rnaxi r-rum l1our ·Jrovisi ons p r ecl uo.ed t :1o se hn:.1dicapued. by physical or mental 

defect , age or otDer infirmity fr 0m t heir f orqeT o-o·oortuni ties of o·btaini!.lg employr1ent . The Order "? rovided. in ··:> art as fol l01flS: (*) 

".A 1Jers on who s e earnin<s ca·oaci t y is li;n i ted because 

of age , "?hysical or mental hm:di ca-o , or other defor:ni ty , 

mEl.y be e;J:roloyed on ligh t ,..,orl:.: a t a TTa .,e b ela':"' t he mi nimum establishsd by a Code , i f t he eq.Jloye r ootains from 

the state authority desi g:r,at ed by the lJni ted Stat e s Department of Lab or a certif icate authorizing such "9e r son ' s 

(*) Executive Order o . 6506-F- :::d1ibit i~o . 24: 

S84:5 
e ·) o· .en a 

s t [l ted in the 

C1 i c e oy l 

-,e t O.L~ abor 

...,.? .1 erro rer 

n list ~f all 

c.:-C's aid to , 

en .o··ec s . " 

0 -

sucl ''a e., "'nc: for sucl loUr" us she1ll be 

er ific<J e . Such c:m l ori t, sl nll be 

instructions of the ni eu St.?tes Deu.?rtin issuin~ certificates to such perons. 

sl all file montlly ':'i th the Code Authori t 

such 1Jersons e'iuloyed by hi11 , shonins:r the 

t'nd tile ma.·iJ.mM hours of Porlr for , such 

III. Procedure 

T.1e _ 6_ 1ini s tra tion of the e~:e'Y t ion relnting to handicanT)e('i ·,Jersons 

•ere in t ile :1ands of the United States De:::krt:"-1 11t of Labor. On : .. ove:·1ber 

8, J. 0::i-~ , t :1£'t DeT)art•·1ent isnuecl. I11s tructions to gJ.ide State Authorities 

in t :1e i ss ... ance of CertificC~ tes to HancUca ·yoed -;- orkers; (*) etc ., 1::1ich 

prescribed the Tlethod or p roeedure in such cases substantially as folloPs : 

(l) P.n application '.7as req_ui1:.ed to be filed by the enpJ oyer ':'ith 

tl e authorized state agency , to contain information concernin the e:·1plo:ree , 

such E'..s lis occuyation, earnings and the "ICJ.ges and schedule prouose(l. for 

hil!l 0.s .-ell a.s the minimu:n Tiage and MaximUM hours applicable to tlle so.::1e 

o·cc1.):"_9C'..tio:1 uno.er the code . Where the ha"'..dicap was other than a2'e , a toetor' s certificate , stating U1e e~act- nature dld degree of the cUso.bility 

was to oe o' tained and. rrhere the handicap Fe.s "1.ental d.eficienc-v , e. certificate ~s requir ed from a psychiatrist or a neurologist . The certific~te 

as i' equirec\. to be from a physician hol0ing public office . Whereve-~ ··JOSsi ble , tae state authority l'as to make an investigation at the ulc?.ce of 

e ulo7·.ent . 

( 2) Ii.1 determining Tihether an employ~e nas to be classified as D. 

hano.icau·1ed norker, it ·!as necessC~ ry to di st ingu.ish betrreen r·orl::ers •i th 

infir::lities end those nhom the employer considered sloTI but 1ho lmci.. n o 

s .. ecific hai1dicap . It" ne.s also n ecessar y to distingui"h n orkers l'ho had 

phJsical or ·1ental defects but hose ear ning :povrer nas not inpetrec"l oy 

such C: efects. 

The i'eC:.uction in 1'[-l.ges depended uryon the ext ent of the hanc1 ica~) · 

\?hen a coC:.e containec no nrovision relating to handica:::> ')ed -rorl>:ers the 

"1'1ag e e.llm·:ed. 11as ,Jrescribed at not less than 75 per cent of the co&.e :·Jin i -

mw for i:..c-t industry unless sp ec ifically ap;1roveCI. ~r the De::9art 1e~: t of 

Labor. ·:!o,..,ever , a differential of as lo\1 ·as 10 per cent n s CJ.llo . ·eC. ·. ·:1ere 

he .~.1an(icc-n arr antecl such cl.iffe r ential . Lo 1ger hours t l1an those ·)re--

sc ioec. 0,; t :1e code for no r nal .'orker s ras not ·oer--littcd, both because of 

he tende:.:.c'· to r ec1uce the hour standar ds for all y:rorkers and. because 

e : e.ndica·cro ed. person , in general , 'f'S not :ph1 sicallJ able· to , .. or _: J.o: .p:ei' 

hours ~1 a normal uerson. 

( 3 'C.11 ss specifically approved b; the Labor Depertment , fl. certifice.te to · ·ork for less than t h e "1ininUJ1 age 1.as not lJGrli tted to be 

gra:.:ted. for -10re than 5 p er cent of the orkine; fo rce in a P;i ven establishne:lt, e·::celJt ...,1ere a code specifically pernitted. the e:1plo..,•1m1t of a 

( * ) by Labor Denar~ment - Exl1ibit _~ . 25 

9845 
- ' ,7 -

lar~·er ·.)erccntnr:e . Tion-..ve,~ , one lenC::.icap•eCl , -or':er rras allo,ed. in co.ch 

estC'blis-. .:,e.lt , no 1atte:c horr srnalJ , rhen , in tl-:e -judgment of the Ste.te 

Aut :ori t·· i ssuinr; cert i:t:'i c<:lt es , the Hpplic!'> t ion 'I'Tas justified b y the facts 

of t:1e C[l.se. 

(4: ) :S::ec'")ti0ns to the rules of t he United states De·oartMent of La.-

bo:~ t ::e t [l :1on<licap'1e d p erson may not "Je 'lc.id less then 75 uer CC'D.t of 

e e ·1inin• 1 , 0r tllc.t no t nore than 5 per cent of the 1.7o r ke rs in an r one 

-ole1:::t sjould ~ e so classified, 1·1as u rovideCl. for in tmusual cases of hards'1i:J to t.~ e 1: ·orl:e rs ,upo n the r ocorJmenoation 0f the State Aut ho rity. 

( 5) 1-ir_;ht watchmen were not ner'li ttec~. to ,-ork longe r hours tl1e..n 

_ r escrioecl "'uy the · c-o-d:ec,--··I:f -hou-rs -r:e r e not liTI'li t .ed b.:,_r _g. code, a certificc e \.C..S isc;ued :!1ern i ttinc_: eMployment for S'tlch 1: ours as sem·ned to the 

is suir~ c of:.:i c e r to be j ttstified.. 

(6) A :_oe~~sonreceiving l'ork:nen ' s coM-pensat-Lm on C'.ccount of i:ajUI'3' 

cor~lo. "Je e' 1:?1 ~-ed. at less than t !1e min i mum on J.i ght rrorl: u.ntil he Fo.s 

able to :..'esUJ'le Ll i s job ~-·ovid. cd 1e eMploye r r e:_o ortect. the part icule :~.·s 

of sucl1 l i_;l1t no r k to tie Stat off icial desi gnC'ted to issue certificates 

anCl. to t:1e Sto.te Suuerv isor of Vocationnl :::lehabili tat ion . 

IV. Su~11nry of Adm inistra ti on (pr LC1bor Depar h1ent 

The Division of Lao or Stan<lard.s , Uni tecl. St .?.tes De"?D rtment of Lc;.oor , 

i ssuecJ. a re~)ort co ering Han licap~oed Uorl·ors. ( * ) For more detailed. 

stuc.;:l t:1is report 11 ill D::ov -:3 illuJ-:1inatL1 • In gene r a l it may be stated 

t liat t~·-e Lc;.oo r De"DB.rt:nent nas confronted ni th tb..e n eccssi ty of pro::nulgating a. u.--:iform policy ·.i th r es"Ject to the s~uance of c e rtificates to e!11-

plo~r :1e.:1C.i cap"Ded norkers. TI'i tl t he vieu of acco!!lp l i shing uniformity of 

loc~l e.d:.1inistretion, t:1e state issuinE: officer s file t in Boston in 

Se•Jte:1ber, 1~34, which meetin~ as attencce6. y officers from the l eading 

inc:tustri2.l st s~ .Ar<1onE; t~1e "Jrob len s considered 1.as t he.t of fixing an 

age o: e:·1:p o~r es -,:.i. iC ~l should. be conside reci ole. for the purpose of t h e 

Executive Orcier. It rras C'.eter · ine cl. that d i saoil i ty f ron t h is cause ve.ried 

to sucb.. an extent i n individual cP.s e s anc:'. d epended so much on the particul8.r ,--or: : t.l1at no arbi trar;y- a ge limit could. b e fixed. Another question 

was 1a t percentage of t:1e number of such workers should be allowec. a 

co:1cer11 as com~?ared to the tot2.l number nf employee s . This percel_ t ac;e 

as has been seen was l i:!11i ted. to five ·oe r c er. t . 

A s1.m~1a r 1 of applications f or certifica tes i7hil~ not cor1plete shou 

n tote.l of 21 , 136o Fornal ap·oli cati ons :er e grented a.nCl. c e rtificc;.tes 

i ssuer. in. 17 , 203 caseso ~J JlicP ti"l ns ne r e r efused in 3 , S33 cases. Ce:ctifico.tes \Jere issued in at J east ?61 different codes e.ncL in 44 stc>.tes 

and ~1 e District of Columb ia. The g r eatest mmbe :r of exe711utim1s for 

hanc1ic.s.p~)ecl •or':er s n~s fron the Cotton Gc>.n1ent Code , t he r e be i ng 6 , 735 

certificates issued from t ile minir:1um t:·a.ge u rovisi on of this code or :r10re 

than 011e thircL the total nw.1be r of c e r tificates issued. The next l1 {~h

est nu:.1be:c was in the Canning Industry ith 1 , 6 53 ce r tificates. 23 co0.es 

account ed. for not J.ess t han 14,245 certific::1.tes o r ap u roximat ely 8.!1 ·oer 

( *) :qe-,Jort of Lab0r :Departr1en t on Handicau:") ed i7orLers - Exhibit l!'o . 26 

0 845 
•) - ,_, 

nt f o al · sued. ?76 c r ifica e we ~ r evoked fo r vi latio~s 

ct t:. t und r '1''1 icl th y •_re issuod and 590 cancelled fo r VCI.r ious 

o h r r a on • 

:·any of he od ontained nr ov1s1ons relating o handicapped 

wor!<er • su.rnrnari za tion of 475 cod s r e <'. ~d by the Resear ch a nd Plo.nn·nc..> 'vi<>ion of NRA (*) ho !S 277 cod s , 2 arnendnents ~. d 9 sup-ol er1entar ..,r 

.odPs ontai-:1ing n r ovi ion fo r ex mption s of handicarped or ker s . 

Inforna:ion ori b1is subject is also to be f ound in ' cl icy on -:!<'.~cs 

b lo..., Le:·inimum11 , or k :ater inl s !o . 45 . 
- 29 -

I . Origin of Orde r 

II. EAecutivo Orde r No . 6711-A 

III . Pro cedure unde r OrdPr 

IV . Summnry of AdministrRtion unde r Order 

I. Origin of Orde r 

A u r a ctice h~s u~evai ed among indust rial conc e rns of offe ring 

employment to '1 e rsons r1 no for various r e ."lson s .q,r e confined to t heir homes . 

Tl1e type of wo rk is of such n a ture tha t it is n ot n ec ess nry to be oe rfcrme d 

i 1 t -1 f:1c tory but could be done In the ho es . ';fhi l e this offe rs an onuortuni ty for emp] oymen t to m ny \Jho would o tue rwi se hav e no means of ea rning a live linood the pr~ctice on the ~ho e h~ti t e nded to creat e unfair comnetitive couditions bec :-mse i t is diff icult for the comp e titor of the conc e rn emnloying homevw r ke r s to maintai n f :=tir s t anda rds of nours, v1ages and 

working cond itions for tneir err:ul oy ees who v.rork in the factori es.. Previous 

to NRJt s ome effo r t. '"' 1wd been mc:·.de .' to cot!tro} this Dr a ctice a nd reduc e its 

evils to a •11i:himum. A consi de r !'lb l e miiTib er of ,codes u rohibi t e d homework . 

rhe se code --)revision;, , t owev e r, llrougn t f orth A numb e r of complaints from 

inciividua l \\Orke r s w! o He r e confined to t he ir homes bPcC<u se of .1.ge , infirmity or bec ause t hcd r s e rvices were 1vo·ede d to CP.r e for an invalid . 

In :/i ::ucn 19 '~ .~ , a consul t .:; tion v,·-, s n"·l d oe t we on t he Se cret a ry of 

tabor and t he Aci;ninistr.., tor o f t he· 1r:.A wu i cn r Psult ed in t he s e tting uu of 

a joint corn:ni t tee of NRJ>_ and t!ie Depa r i.ment of Labor to study t he ·oroblem. 

As a result of the comrri tt r: e 1 s activiti es ~n executive orde r WAS r ecommended 

to the Presi den t wr1ich resul t r> d in the issu rmc e of -:<;xecutive Orde r No . 

6711-A. 

II. Ex0cutive Ord e r No . 67l l rA 

This Orcle r 'vvn.s signed .Aay 15 , l '33L= · It r e cited that the question 

had arisen or might t he r eaft e r a rise as to iihether· the aboli ti cn of homework had ~rec luded c ert a in on s who we r e incnnacitat ed for f a ctory work 

from tneir forme r onuo r tunity of obt a ining Pmplo;yu:nent n.nd t hen T-J rovide d 

t na t no cod ~ in .which homewo r k is nr oni bi t cd t he r e tofor e or t here aft e r 

au:p r oved should be c on s t rue d or a ··Julied c s to v i ol a t P t ·ne r egul a tions the reina ft e r se t forth.(* ) ~hese e~~l atio s p r ov ide d in p a rt ns follows: 

tt 1. A p e r son could ·be ~~e i t t Ad to engag in homev·or k a t t r e same·· r .·> t e of w~1ges nai d for the 

s ame type of work pe rformed in th P. factory or 

ot he r gul r ul nc e of busine ss if a certificate 

was obtained from t he St ·. t e <mt ho rity 

or othe r offic e r de si gne t ed by th~ Unit ed 

States Depar tmen t of Lab or , such certifica t e 

·wa.s t o b e gu,.n t e d in '1cco rd '1.nc e wi th ins-true- .. ··-, ___ ... _ ...... _ .... ··· ~ .. -···--· ... t-lC?ns issu ed-"bY." ttre-- Urii t ea: st·a t e-s-DepRrtment 

0f Lano r , Provi d ed-------- ------------------ (*) Ex ucutive Order . 6711-A - Exnibit No. 28. · · 

9845 

- --- ---
- .. o -

( ·t ) S c p c r on · ., '"' "ny s.i c a 11 y inc n n., c i t .'1. t e d 

for work in r:1 fac&cry or c.,t cr n•E:,rular 

rlacc of usin~ss and W'l. free f r om any 

contagious dis~" se ; .or 

(b) Sue uc r::;nn mt unable o l el'·Ve horne 

bPcau::>e tis or ner services were abs olutely rss~ntial fo1 attendRnc e on 

a lJerson who w.qs bed r idden or an invalid and botn such ue r son s we r e free 

from a ny contagious 'iiso se . 

••? . rJJ.Y employe r Pngn.ging such <1 pe rson should keen 

such certificate on file and file \ ith the Co f' 

Authority fo r t c.e &rade or ir dustry or subui vision the r eof conce rned t he name and add r e ss of 

eA ch worke r so CPr tific R~ed . 

r;,ni s ord r St ould 1 ot apply tv f"'lr ,1 ff F> c t Codes 

of F."'i r Como e t it i n t ht=>rP to for .:; o r tn ~af t e r 

approved for f od or allies roducts trades, 

industries r subdivision s t ne r eo f, wnich cont ained provisions urchi biting the manufc:l.C ture 

and/ or p roc essing of fo d products i n homE" S • 11 

III . Procedur e unde r Orde r 

Pursuant t o the order , the U. S. Deuartment of Labor on June 1, 

1934 , issued instructions el~ting t the c ertificFttes , (*) in which i t 

was recited that the orde r a11'llied to codPs a1)T)roved or to be thereafte r 

aT)Ur ved I which contained. a Drovi si 0n pro'li biting !.tOme work in the indus try 

r nar & t e r eof, executing the food or allied '1 rC' ducts industries , <nd had 

n'"> effect upon codes wh ich did no t contain such a nrohibition, and furthe r 

n rovi ded substantially AS foll·ows : 

(a) A joint .1'1131Jlicati.on f r the Ct" r tificat e was to be mnde by 

the nome v10 r ke r And the emol oy e r on a form fu r nished by the De )Rrtmen t of 

Labor, &hr ugh the State Ftgency ·, s tating the r eAsons f()r the wo r k e r ' s confinement t n ·me 1 the rAt P. of nay per unit of wo r k , the time requi r ed to 

co nlete Fl. unit, the numb e r of units given out a t one time , and the time 

Ftllowed for omoletion f the work . Tr1e worke r WflS required tn c e rtify 

t hat he would ne r sonally ;e rform· the wo r k , ::1 nd the errroloyer WRS r equi r ed 

to ce rtify t . at ne would DRV thP same ,·,i e ee-work r ::tt e 1aid in the factory ; 

t hat all mA t e rial , e tc., woul d be furnished , de livered , and returned by 

&ho ern'/loy e r a nd at is exuens e , nd &hat no dP.duc&ions would be made f r 

"noilage or fo r imnerfoct work . 

(b) In Ctdi tion to the r f'··s ons givon in 1 (a) and. (b) C"lf the 

or d .r 1 t he ins true t ions autho r ized issuance of Fl. certi fic::~ e if the hrrne 

·.or ker v:a accustomoc to this m~'tnod of work b 8fore tt F code pronibi tion , 

...,nd ··as too ld to make an adjustment t o fRc t orv rout ine . 

t' 

~l 

O! 

f;l 

Wf 

ff 

Wll 

by 

~ ci 

( "' ) 

11 In" tructions for Issuanc e of Certific·1tes Porrni tting Horne "ork i n 

Snecial Case'"' , 11 etc . , xni oi t ~o . 29 . r; 

98'1:5 
- 31 -

(c) ro m<tint ·. in t hl'; codP. .,, orlibi ti ons , the Stat e Autho rity was 

to investi.=> :::~te t!1e auplic·1tion to dP t e r mine if tr1e exPmption was justifi ed , 

and thP st;:,nd·.rds sot fort.h we r e to b e strictly' ;:n)llli ed . The issuing 

olficer could r e quirP a meclicRl certificate· st 6"Tled by R puolic he:.1.ltn 

onys1c1an as ~:;o n ~ysic:01 l ii1CApaci ty, and no ablt:-bodied ··;e rson unde r fifty 

wns to be considP r ed tno old to mRke the nec essRry ndjustmen t to factory 

work . 

(d) The rtifi ca~e coul~ be i ssued if· justified, s >Je cifying 

ti:1e Rmoun t of wo r k giv en to the emnl oyee dur ing a suec ifi ed <)e riod, not 

to exc eed t ha t which could b e comDl e ted .during c ode hours . 

( e) rhe c ertifi c ::< t e was t .o .. b.e .issuE' d. in quadruplicat e , one copy 

f Jr tne worke r, on e for t he . employer., one fd r the c ode a.uthori t y , Hnd one 

for LhP f ile in the isauing office. 

(f) Mo r e stringent Stn,t e l aws or r egul a.tions affec ting homewo r k we r e n 0 t to b e SU'T)e r sedP.d by the Drov isions unde r which c e rtl.fi cat e s 

were issueo .• 

(g) "~- ~o limi t :'l tion of h~=> numb e r Jf inc aDac i t A.ted wo r kers to 

each empl oyee WA.S "1 rovi d.e d , but c auti on wns to b e exe r cised to prev ent 

fraud if numerous a~ li cants Po re r ece ived. frorr. ~my one firm. 

(h) · A ce rtific e coul d be r evoked if (1) the r e ason for gr nting 

same ceas ed tv e·:ist ; ) the .work w~ s -pe rformed by a P e r son other t hHn 

the emDloyee named ; (3) the er.mloye r g rwe cut· ·wo rk in viol a tion of authorized conditions . 

The Div isi on of Lab or Standard s \ lJ.!ll .~,d., .S..t.;;...t es Department of 

Labor, is~ued a r. "':po rt· co·.; i' rY f)'x rr1p ticn s' ·to nome - v10 r ke r s , ref e r ence to 

which i s mac.P for mor e de t a il ed study o f this subject . ( * ) 

A me ting of the st te uing office rs was he ld in B0ston, 

Massachusetts, in Sel')t emb e r l'J 34, to di s cuss the n robl ems wh ich a ru se in 

connr:> ction with the administrA.tion of exemp tions t ::> horr.e-vv ork p roh ibitions. 

Among t he prool ems conside r e d we re cases of moth e rs co n fined to t he ir home 

by the CP..r e of y0ung chi l dr en, nomewo rke rs wno wn ile not incapi t a t e d fo r 

factory work, live d a t p ro nibitive d i stanc e s from factories. It was decided that the Ex F. cutive Orde r should not P-!ply in such case s and that 

rtific ~tes should not t he r e for e be issue d . 

Repo rts we r e r e c e ived from t he S tat e i ssuing officers on the action t ake n on annlicati on s for ~7 rtificat ., s. ififh il e not absolutely compl e te, 

figures hav e been assembl e d b .,,sed on thPse r euo rt s . They show the following: 

Formal RCtion was taken on 5, 0 65 auulications. Of this numb e r 

2,608 c e rtificF.J.t es we::~e issue d and ce rtificat C' s 1.~:e e r e fused in 2 ,457 cases. 

( *) Report of Del)artmen t of La.bor on Homewu rke rs , Exhibit No. 30 • 

. --- ---------------------------------------------------------

9845 
- 3~ -

en b .r 01 rtifi~ t · i au 1 is in ignifi ant ~ comun r ed t the 

tot ~1 ocr of t omc' .. or:i<erA f rmer1y a~ tacned t o tt e:::.e ind s tries. p1' c· ti ~113 ·,,f r e r·,ntf d in 23 St te ; no. ever the numb r issued did not 

rc o ta tinl ro rtions ·~cP~t in a few states . 

.Lhe f llo\/ing tables ow tee 

-r nted qnd ~fusca for the ten in0ustrics in 

i c te we r e i A sue . . 

mbPr of a:~lic~tio ns 

rhicn 100 or mo r e ce rtifIndustry 

'en' ckw'enr ..... ... .......... . 

re cant and cu tom ilori1 ~ . .. . 

Infant~ • and cnildren •s we:tr . . •.. 

Ar tificial flowe r Rnd f eR ther ... . 

-n e r gArment and egligee .... .. . . 

!en's garto , susryencte rs, etc .. . 

Ple ting , s titc ing , and bannaz 

and hand emb roide ry ... ......... . . 

Toy nd nbcything ... . ........... . 

Tag ................. . ........... . 

Cotton garmen t ....... ... . .. .....• 

·umb er of ccrtific tPS issu'3d 

807 

220 

102 

160 

153 

lL±1 

12 

121 

118 

116 

4 . See ago 7 of ~epo , Exnioit lo. 30 . 

:·umbe r f anD1ications r efused 

523 

73 

131 

151 

219 

141 

447 

150 

43 

100 

The g r eat est numb e r of apulications we r e from conce r ns locat ed in thP 

State of ew Yo r k , being 5 ,06 5 apulicr· ti ons , of wa ich 2, 608 we r e gr ant ed 

and 2,4b7 r Pjccted . Next in rrde r wns t ha t of Pannsylvania , wi th 391 

arn lic ., tions , 247 of which He r e gnmt ed and 14'! r e j ect ed . Tnen fnllowed 

Californi a with 270 apDli cati ons , of which 220 vie r e gr<Ult ed and 50 r e -

j e ted . (*) 

B. Inf r mc:t ti on n this subject is also to be found in "P licy 

on ··:ages below the li inirnum11 , ~: ork ia t erials J: 0 . 45 . 

( * ) Fo r f rth€'r informc:ttion en t nis subj ect 8e 11 .: .f. .A. and Industrial 

=-: mework11 , by 0 . f. Rosenzwei g - 1J.F: . A. Labor Studies . 

- -----------

9845 
Ie 

II. 

III. 

IV. 

V~ 

VI . 

- 33 

H· tu:.·c of' .ArY1r c:> nt icc Tr~. ininG 

Ol'i:.:,in. of Or<l0r 

E:;:c cutivc Or -:.e r tS 750-C 

Or,.:;;mi zr.tion 

.Ad.;_ti n i s trr t ion 

Conclusion 

I . Nature of urontic e Trrining 

The terr-1 11 ['l.up r e nticcn is de fine d Fl S 11 one ·::ho is bound by indenture 

or by l egcl agrL:ement to s e rve another ) Grson for r-. certr:dn time 17i th a 

vi e': to l vC'rn CU.l a rt or traJ.e in c onside r r t ion of instruction therein 

£'lld formerly v.sur- ll:y o: rl<'intenr nc e 7 t he mr:.stc r . 11 1/ 1 

ffi1il 8 the "Dove is no doubt a ;1 a t"1ci ont definition , it is still 

bencnally S:'J Or int.- ar.. nde qu'"~ e teru for Dre sent day 178ge . 

Thus 9 tho distinctio:c:. oe t ··een 11 1:'~J-·J e~l tice 11 end 11 le<>rner 11 or 

11 ber;inncr 11 becomes .T1f.• ilifer. t , t he forqe r ll r e:rnli .c:_ to the youth 

end the tre.ininr; is Lm ,; :ntpll~r en e du crti on 1roc e ss , Tih ich the em-

·Jl oyer is oblif.; "tE'd. to 1Je rfor!l r t.~1 e te r n s of t h e c-:) r entice agreement . ?J - ~ 

11 Unc.e r c:rr.lr .:;ntic6 trnini:1c yount; men end rorJei'l are 

gi ren oror cl. C'nt.: c or:1p reho nsi ve trni ~i: lt~ · li'!. nll br .. Ulches 

Of skill ed. OCCUT1:->tiOL1S• 

11 I t i s of ~!r n. :;_~ ~r i n ~t r'.:!. e t :1:·.t cve r:rone Ul1derst::>nd t~1 .. t ~-n c:.~!.tic;e tr r. inii1.~; i ., :fU:rl CL .~ t.1:'. ll y 8.n eduCe.tioHc-.1 ·-.roc e s s . It is fL·s t ;-..n : f or e::.10st training for 

e. voc ··.tion. This Jr ot;r mJ c ;·.rmot l'...l"'ld shoulJ. not oe reg~ d me rel' ns a mGrns for furnishi ng e~) loyment to 

young '_) erso,·ls. 

11 .b.~~nren tice trainin~ st ~· s 01ut in shm-p co'1 tra s t 

to th8 em_) loyNen t of hel~_)e , to -;:.he ·trr.:.Ci.e scho ol course 

in nhich t h e s tud.ent recei ve s 10 e:D~~ rienc e L1 TIOrk 1.mder 

normal r e "'l co d. i t L :s , r'.nd to the :Jinu te Si)e cial i zati on 

of ope:c ~ tor s . 11 0) . 

II. Ori gi~ of OrdeT 

The ne ed foT. 

been recoc;ni zed. 

established by n 

.)ec Hl tr in in~ in tr!"J.c s r nd industries has lon5 

In l Sl'l , n Federal :Boc.r 0. for Vocational Educa.tion nns 

a.ct of Cong r e ss. Suos eq_ue ntly t his no rk m:.s p l n ced. 

1.} ·.7eb ster ' s rTe·• Int c rnr t icY1.!1J_ :OictionP.l7 

2/ Form of £'.!;JP re:1J~ic e fls ;rcer;-Jent i ssued by Fed.ernl Comrni t tee on Apprentice Tr a ining , E:ch i l)i t :i.Jo . 31 . 

'Y 3ulletLl Uo . 1 , ·o,.., .:;e 2 of Federal Cor.Fli tte e on Ap:p r entice TrainingExhibit l.Jo. 32 . 

9845 
- .;, 1 -

un r th r i or :De ):'1' ., 1 t < J • ..... nc · di v i::;i o:. 

of .... o:;: Voc;-tion-:.1 · r.,inins. --o .... -

e . .,.. 

' t ..,· c r ..... in · .1·· of n · · or!:urs fc l o a mi t 

:l !_) r "' c ic~J.ly nce;li ll'-1e . 11 S':illl~ hr;l ") ·., s :->bundant and 

d reduc io. o: co·· ts i:-rpC::r . i '/C; trr~ini Jro.<;rans inC'uger· 

Jros )Cr01 OJ tine.; · cr 1< .,cl·r c: 1 < ndonccl. 11 !!/ 

h the r· tio.1al L du~trial Recovery Act ,.,,.,s ,· !Jrove d June 16 , 

1933 , no ;e.:1 orc:>l ·)r e v· sion ··n.c .1~d\,; for ::. '1 ·en tic· :!.'P i. i_nb '"~.TIC: no !"ICtio 

•:• s e ·en until Febn.· I.f 1 , ~3 , · •hAn . r . Leon E..,nderson , J)ircctor , 

Rcset"rc ... 1d Pl ~11'. in · i is'pn , <. >Oiltcr .. <' COi!l!'l ittec to investi.:--tc 

thi ro len t'nd made rcconmn •· ~ions . 

·P.pJ1uLilo , o n;>r codes ho.d bcc.1 D.}J Jroved, ..,os ol' .. : ich , fEtilccl to 

includ "'!1Y 'Jrovision 1'or Cl'•) re 1tice tra.inin: ..,nc_ the fe codes thr t 

~~d such rovisi 01;.s · ·r:, e gencr~ll;r in·'.cl.eo_ 1ato .J. or sy-st.em ... ic treininz,. 

n the ot~1t~r. :1.~:1. the c d8, ··ere blocl:in C'';"Jrc ticc < ~r c:-tGnts since 

·. <'c-es ur.der co ~.e ... ··c <J hic~hc:r ~t·.n hC~t usunll, na.ie. o.'))rentices ct the 

be innin: of tneir trPini:1" criod. §} 

T~e er b0:. : i:!_? o-r ~o CoT"ni tee ointcd 'bzr r·r • .he~1G.erson , c onsis eel of Ji:~tcon D.Ut! critics on t~c 1 ... obJ.c:1 , rJ l"!r·rnti'l:· ti1e •·· DPPrtMent o-r ~"'.Jar , ~ e f::~ic or ::.:<...-c<'tio , cm)lo-r'3:·s , or--t':1izeu. 1:-bor 

nd S .... e Je·)<'rt:1el1ts of Ecluc~ tion. r!.e Cor .li ttt o ,.,'1..~ coM~)ose o ... the 

fcllo··· i~ -=- ·)orr-on. el : §} 

::U • • • .tU teme:rer , 

Chief , Lc~or 3r~nch , 

Com lin_ca Division 

·::-s. Cl:u-o .• :.:,e ·er, 

!hrec or, Industri .1 ::)ivisio71 

CLiluren 1 s ur·J< u. 

De artme~t of L~ or 

. . 1 . I .._ . r . .. • • v v1 n , s s • o 

s~c -~r c s ., John P . Frc -, 

·. e ... 9l Ir;>dcP :::>cor-·~t,ncnt , 

.American :?eu~ra. ti.on of L2oor. 

4r: '1': usn.:,...,·;, , 

In' ustri. 1 ::d.uc-t:ion Ser•·ico 

·:r. J . i1. Diet' , 

S .. ... . Jf P l~tio:i.ls , 

.es .. e rn ::C..lec 

4/ p c 1 of :--:: i it :io . 3.:;. 

9.} Pc.• e 1 - ::.·eel ... 

\J fro·1 ....... e- ort of 

on tice - r rL in ::::hi- . ... --· - 11.. 

J y c:; \J ' 

i·o. ,.., rz u._l 

Dr. Cr.rl Ruasbenbush , 

fochnic"'l .r>.dvi ser , 

--bo_~ J.vi sor ,- .3o, .:·~ 1i?. 

i:r. St~nlej I. ?osner 

~co~onic Advis~r , 

..... e;_,e...,:..·c: B'1G. Pla..'1I ing 

Division ' iP..A . 

• ·, .,1 t"'l' ; • Sim01 , 

S Jervisor o ~Jorentices~ip 

I~1C ·stri<'l Co 1.i1is~ion of 

..i consi11 

:!)r. : illie.o !-:. S cad , 

ssoci<'te ::)irector 

r. s. =·J .. lo: .1CJ1 Ser" ice 

:r. " • Irinder , 

S:-co- ::.o· :ell I ext ilG !'r chi 1e 

Co•1 J n:·. 

19,...5 ~e( c::·"l C"'::1!"1i ttce 

§} ?e1·so nel of .. e 

? ... oe 

98.5 

01 i tee - ')~r-c 2 0~~ l'8')0l't en J\))r~ntice rr".ii:ii' 

• ::xhi0i ... ::o. 3:...-A. 
- 35 -

r~fr . C. R. Doole:: , i F'n; re:c , 

In l.ust-ri nl :S.c l ~1 i.'Jns , 

Sc~ony- Vo.cuum Oil COJnn< n•r 

Dr . J. C. 7right , 

Assist. U. S. Commissioner for 

Vocr:1t i0nrl :Sducr.tion 

:.:rs. Betty H<.'..1."!ley , Exo , Sect., }J!r . Gu~r G. Via , 

'd.vLsory :;oF1rd on Ind.ust:.:ial ~du ·::t tion , 

.'O"' d. of :..::ducC'tio'"l , _Jo,·· Yorl: City 

Ne,7p ort :L~c·•s hipO..ui~cling 

Corn-nan•r. •• v 

Hr. John J. Seidel, Dir,• c tor, 

Voc"' onC~ l Ec1uc-,ti '1i.1 :Cor ; :r- ._.r lr1.~1c. , 

Lr. Seidel ':rn.s ::::3xecutive ocn~tn r::r of 

the Co:.1nitto e .. 

11 1. Tho t t:'le terms I oegJ.nner I ~ I i..e:arnfl>r I nml 

1 api;>rentice 1 ha.d ·i) ecn used intcrchan[;;eal>l y in ti1e c odes. 

11 2. That most so-cPll.ecl I D.'J.·Jren tice '.Jrovis ions I 

,.,ere for short o:cea~~in~~ in 1 )e riod ~_; o .. frOll one t'o 

nine months. 

11 3. Thr t o:1ly 4 . 3 ·

1

Je r CH! t o·~ the coc.le s con tnined 

·orov:isi ons for gGnuino n~ )rentice trr i r:ing . 11 ']) 

III. ~xecutiv_e Or ('..e r 6750- C 

As ['. r esul t of t his i nvusti:;G.tion r:ld the 1,;8C0ffi;1endati on of the 

Comn i ttee t ln P r esid.Glit on June 27 , 1934 , :ls cuecl ·:;;:,:ecuti ve Orde r :To. 

0750-C. 

Th is Or c"lel~ J-'rovi doC:. th'"':G no Ji'Ovision in o .. ny Co cle or aGreement '.'hich 

had the r etqfor e 1Jeen or '70'\UO. the r eC'.ft c r ~1e r-) )roved should be so cnnstrued 

or a--) )li eU. as t o violr.t o tr,e n1les r'lcl e::_ul.: ti ni.l ~ t !1o rein r.fter Jromulg c>tec.. Thes e rul es L1 subst.:;.nce ,-,ere : 

. . 

1. A De rson ·~"s :9e rmi t t cd to 0c er.'l<; l o;y-ea. 2.s an 

EI~J ·. ntice ~' t l ess thr-:.1 the ninimum '""!D.g e or i n exces~ 

of maximurn hours of l~_b or i f P mei:1be:;.~ o:£' ru1 i n <ius try 

shoul 0. obtain frorr1 a'Yl ~~ -' ,en y e :;tr.blished b~· ~1e Secl~ee.r~r of L;--oor a c r:;rtificf'te ·,:"~ e:t; 1i tt:.n~:; such ernloymen t 

i n conf Ol'Eli t 3r n it;..,_ a tr:;.ir.inG · Jro6 r;.n of fere c1 by such 

r~ en , such e:T·ll Oy'·1cmt to c o:;.1t L1ue 1J21 til the certific a t e shonl:-1 be r evoked.. 

']) Page 2 - E~ :cerp t o:£' Re· -~ ort of July 3 , 1935 - i~:.:h i b it No . 33. 

9845 

See c.l so S"U.I·ma rize1.t i on of -"·" )Te ntic e~4 ancl l errners -nrovis i ons 

in eccles OJ :tesoarch L"n;l PJ. c.'.nning , :S~ :h i t Ho. 33-::B. e .. nd 33-C. 
- 36 . 

T!c r 11 "~J1 nticcn s~o,ld 1:1e '. c-.:rc:L.,o:1 of 

16 ycr r a ·-.l o ! ,.. ' n tcrt:d ii o . .,_ · -ri. ten 

··· t h the· e. l o .-(>: or en rs:soci<'.tio of ( nlo~r< rs 

. : i c. roviJc-- fo · t 1,... .... .5 2000 hmt:L'S 01 1·enson: ~r cent · nu0'\.1.G c lo r tent :1a .:is J:'"'tici •notion in rn ;- ~ 1rovetl 

ro r~ 1 c t-r:- i: iL ; ~ s t1w:·c L1 ·)rovitlec\. . 

. A Con .i t,.t cc si1o ,Ll. be e >t:'~) li..,l •ed b: th~. Sccrcery of -~or to ~d isc he Secre ~l in the e~orci~e of 

tne ) 0'- .Jrs t ' .ere in co, \f .;rrt.0. "~ncl to -.Jer orr1 s·-:.ch other 

funct1o1s rs the. Secrct,,r~· ; i.)Lt direct. ?hiG Comnittce 

sn0uld oe COi•l )o..,eG.. of one or nor-; rL'nr'.:c.c nt. ti ves of the 

fJ.ic c o~ Educrtior.. , thG lT tim<'l Rccov rj' Aduinistrc:-

ti on end th~ United st~t es DPJ:-rtment of Lrbor. 

The Orde r further c • .l hori~el. the Soc·· ct~ry o. L, bor to ·oresc1.·ibe 

fLtrtht~r ru1e"' 2 .. ll rebuletionn f':aC:: tnke suer ... othe r ste JS ; s l e 1ig.1t 

deem necessc-r:· to effectu .te thl=l O:tce r . OruCi"s <') H"Ovin ~ codes or .9.greemonts inco.1siste~1t ·i til this Or l~e r re:.:- c ;·,10clifieu [1CCOrd L1 ~r ' 'JrOvided 

~w emJ1ov;:;r e l ecteC. to "uGco;lC Ju.ojc>ct to t:1e Or .cr. J:lhe Oz:(.er becr-ne 

effe ctive July 15 , 1934. §} 

IV. Or .c:C~.i1 i Z.:'. t ion 

Purs·.1::-i.1t t o the e.uthori ty c o·.1ferred 'ry the :S:wcutive Orl..er , t: e 

Secre t--_ry of Ie.bor D. J )Oin t 80. the _~ ollonin.; menbm·s to co: situ te t '1e 

Federel COi1I•1i tteo on A 1'p r e.ntice Tr.='.ininc : 

r s . Cl ? l'Fo. :i. Jeyer , Chairmdl , .Assistr-.nt Director, Divisio1 

·of Leber Sta_'1drr&.s , U. S. Be·)c.l"ttJcnt o.: Lr'J or , r e·)r esentint:; 

the De,)"'rtraen t of La.b:or . 

lt r~~te ~r . ~illiPn E. Ste~d , As soci~tc Director , • S. 

Em1lo rent S0 rvice . 

:r. Frc-:1: Cushmf'~l , Chief of I :nd.ustrinl :L;c~uc' t o~1 Se:· rico , 

:Jivision of Voc--tio;!.<' l :::duc--tiol~ , Office of EG. cr•.t io,l , rop:tesentL r t!l.e f :t.'ice of Ld·ucP. io:1. 

ltcrn: te - ~:r . ::. ! . :3i1li:1[:tn;.1 , G\3~ .t , I:1c~ust ri~l 3duc~

ti01 ... Sorrice , :Jivisio· roc~tio·· lt'l ~d.UCC'.tiO t1 , o:r :~ ice of 

~c~·.1c~=- ti -: . 

:r. St.;-.. 11lcy I . Pos1er , :rtose...,l·ch p·1C. Ple1nint; Ji visio.1 , 

:: atiod~ l Recovery dninistr~ti0:1 , r c::_J re sE ntin_; the :Tationol 

~ecove~r .~linistr ti on . 

A1 er:1r to - :Jr. Ho.:.. r:' .. e · ss , Ass is t:··;l t to the : ;.:-;:ecu ti ve 

Sec:.·o rr--_r , :i'- ti o.~al :tecov.:.ry A<b ·Jinist_r tioJ.;. . ~ 

On 1-.u s 14, 1934 , _;ursuent to tht.. c-u thoj·i~;·tion con t--ino·i in t:1e 

E :3cutivc 0:· .e r , tt."' Secrete.r·; o la ~JOT issucG. 11 (.- 0:'1~1· ~1 :::te ... ..,tion :io. 1 11 

§} E::ec, ti e Or er :·-o . C7SO-

'}} Pr ·e 3 o ... the AiYJre:1tice I'l"Clining Pro.:;rr- 1 u....'lc:;,er t~w lP :L:.X:hibi t 

:-o. 3!j _ • 

9845 
- 37 -

-yroscri'vinb furthe r r ules nnd r e1c;u.lntions f or tho c a rr:rinG out of the 

f1•J )rontico trl"'.irllTt[.; i!l'O ;rar'1. 10/ This Aci 1ini strntive Or de r directed 

t1l' Coru1i tt co t o )re·.1r.r'"' c:1<.:. ~~; ommend. to tho Secret[l.r:r b r-·s ic standnrG.s 

for u Ge in the tr· ini ne:.; ·Jrog r on. 8->J.ch st:t.nu.o..rc.'.s r: ~h t 1Je vn:tiecl nccorctin~; to tl e occup '"~.tio n but the tr[l.ininc ·1e::ioc.;_ s11oul <.J. not be l oss thon 

2000 hour~ nor mo1·e thet,1 10 , 000 hours of r en.s on11bl e continuity . l'Tot 

1 ~.:;..:; t l1···n 14!1: hours ·)or ~'G[ll' should: be devote ,'. to ~~~ rou-·"l instructions 

L1 '-;v!:L•;.',"1 nd teohnicfl.l su0 j c;cts unc:ter .t he directi on of :?ublic c:mthori ties but t he conl.JinecL hours of ··•ork nnd L1struction should not exceed 

44 hours , e1· TIOek. The be '-~ in;1in :; ':·c.{;e ·mst not bo l ess thfln '2,6% of the 

b~s ic r'"'.te :Cor journ o~rrnon _J re vn.ilinc; in the:, occu·.!: •.tion c:md.. local.'i ty .. and 

the -r;rr;e must ,)o incrco..,ccl ~)e riodic ll;y durin:; t ho life .of. thG contrnct , 

the •ver·-..__.e 'N>,;o for the o11t iro n n rontice tr;:tinin:; ·0e riod being not 

le c:s thc:1:.1 50 _,Jc r cent o:· tho b: sic '7r.ce rl".te . The Com .. ni ttee 112s E-leo 

directe~..l to revi e··.' the •'"'.ctivi ties of a ll strte <'t~on ci es L'...11d re·Jort to 

th0 Secre t .:;.17 rrhethe r nn;;r such a,:;e;:cy shou.l:~. bC; dosic nated.. The Committee 

s~101~·.1c-;. o.l so recomnwnd to t hr Se cro tary such other r eeional, loc<ll, eenoral 

or special a&enci es ns Elight ;)c n oca ssary to supc1·vise the tndning of 

a-o )rentices. The CoTIFli ttee shoulcl transni t t o tho Sec l·etm·y nominations 

f~l' mcr.Jbe r shiu in any such r-.r:m.1 cir;,. J.r- cla b ;· (1) ~T.~1 ,; (2) U. S. Enployment Se rvice o:;..· e;;l O..fL~'3 nt service L~ t~1e Stn.t e 17here ...,, .ch C'tl;e ncy rrf.l.S 

cren.ted; (3) Strte :Bonru of 1/osP ti cn.aJ. Tro i!: in::; ; (4) Sta te Lc<.b or De'')CJ.rtrnent; (5) Or{_;aniz<l.tio-:'1. of :Cn lo roes L1 the "_) <'rticuln" state; c::>.nd (6") 

Orgfl,ni Zfl.t ion of Ern-)1 oyer;~ L: the ··J<'.Tt icn.lc•.l' n t,".te . .r..v e ry sucn agency 

should (l) nclo')t rs t l e ·:J er:.wuut g1J.id.in; --) riJ~ CiJ) e tho ed.ucC'.tion r.nd 

tr.,ining of a'') )r0:1tices ; ( 2) El.do"0 ·c b.:-· sic strndn.r i.s < t l eCJ.st equf1.1 to 

those ·')r .:scribed ·b:'.r t l1o ter1·i toT~r ; ( 3) 'be nu thori --:eel. to issue certificet os )e r n i ttL1." en ;l0•rment o:-: r· n:cent ico ·, (4) -·J l' G~ Jpre n.nc.1 e::e cute a "" ..1 - .J_ 

r:;enorc-1 Jla:n fo:-c su:pe:o:-visio:1 of 2.nr e11tice trn. .;.ning nh ich should include 

the fl:·-nraisiD.{; <'...l!.d. e:.nrovL1 : o : s·)ecific •J ro~; rn.~ 1s , cot Y•) rovinc contra cts 

··~ '.~J ')ren t i ceshi·1, r eL;i s teril1r:; C<._J·Jren ticf3 s , su~')erv i s inc; the training, 

cc.nc e llL1c; contr Lc ts !':1l.~ i ssuii1 · d..i ~) lOnr:'s . 

Pursu-:-nt to the C'.J OVO .t->.C:.m i n istrr' tive ~:- ,_ er the '70 rk of orgEmizing 

the strte co:1; i ttee ~-r ;· s be, ·u.n. A series of · reg ional meetinr;s conducted 

by Llr. 17il1iarn r. ?o.tterson , :=xe cutive cr .r~' of the Cm·.mittee on 

A.)1)l'e:ntice T:..·E' inin;::; , ·::·s 'be';LD.1 AUGust 26 , 1934 , r-ti1\]_ continu8d until 

Octob ei~ 9 , 1934 . As a r esult o·· th se llleeti.nG Stf').te Cor-ni ttees :·ra re 

orge.niz EJd. c:,.:,.1c'L t he ir ITJ ointnG;:!. ts officially 11nde ')y the Sec:retc:.ry oi ' L8.bor. 

The Fed01·~ 1 CorJui ttee on A1Y r cntice '.rro.ining sent out to the Str.te 

Com;!li ttees ·.-rri tten i nstructi0i'.S released . . L'nder c"'..r·.te of Octoo er 20 , 1934, 

r e l a ting to the orgc.ni?:e.tion of the Stl' te Cornmi ttees r·nd of Trade Advisory Co!%1i ttees .0.;1d s:)ecifyin-::: the :'uncti 0ns o f botl DJJ.Cl a lso stt='ndA.rds 

in the E·.d<'1L1i str·.., tion of the 8.}..1:·) ron tice traininf:: pr ogram by the St . . te 

Comni t tee . 11/ Genern.lly the s e ins t r·o.1ct ions f o1lo'.7 Ins true tions Ho . I, 

i ssued ~.r the Se cret<' r y · 1 ;-.b or ·:J r evi ously ref \_;:.· 1~ x"'c to . The instructioi.1S i ssued by the Con :i ttee ·:re ro, ho'.rovc r , TI'Jo':.·e e l <:>'b or0.te n.nd S"0ecific. 

The Stfl.te Co LL.l it t~es , bC:!i -; o..:;enc ie s s et 1n uursu,.".nt to the Cl.uthori zo.tion 

c on to.ineo. in Ins tr·tl.C tions 1'To o I, the Ins t r u e tions fro'! the Feder a~ 

I 

10/ GenerC'll H.e,::-;ul[' ti o:.,_ ITo . l - :;jx,_~ibi t 1To . 3::.-E 

11/ Instructions ssue(~ b :reCeral Committee - see ,_Jn .. e 4 to 8 , inclusive , of =:e Jo rt o: Co;1mi t tee - Exhibit ~io . 33--A. 

9845 
.. 3 

c 1J i of.Grou".)~ (.1' r '0'1Ci s 0:1 t.le St· -ce 

Comuli r e(l 1 ~.~.~ of t 1~::: IJ <lstu.:..· tions ..~.ro:1 t. e Sec ·et r- o... 1 o:: , e··c~..:r t. tr ~t 1 o Co . 1i toe 1 s Incl.; true io~1s ·10re s -)l~ ci::. ic:-11 '•si''1 t~.;;. lL' St t Co )li· 1co Divi.., ion , i:1~te , d o:!.' :.,...1 , nd the 

.:>t te l,o, l'~ti• n 01' 1< ~..,or in.;t"'·"'· o.ro ,..,n or[;t'J izr.tio:1 of o 1 >lo:rees in 

tha -o~·r ic u:-·· St...,te . r 0 other J Odi e:;; r e y;, (,;; Ci. 00. "(,}.~0 t:1e S"'J.le < s 

in tl ~ Instructions fro ·~he Secret:-r-r , i.e . , St·te :J 'J"_:· tment of Lf'bor , 

t"tC lOC'''t for oc, tion-..1 uuc· ti01 , '"'pl o'fnont S-•:..·vi c 0 e.n0. Or•"nizf'-

tion of . lloye:·s. .~. .e ftmctions Ol th: St t J COI.lr.li tee -!e::e to supervis\, he tr£ i 11in · o Cl'l l'entices in "Ceo·· ~·1 e ·it:: the stonC'.f'J. tl~ r • >roved 

by t}:·e veer t:-r·r o · 1£'101' -r:.i c:l i nclutie ~- : -, •rovr·l of , Jp l. en tic~. contl·rcts , 

· issuin~ c erti:J.i cr ter, , l'e ·i torL1· <7Jl'enti e·~ , SUJL, rvisin!....o t .'(.;; tr:-l.i ling 

of ,..,_, n·enti c es , co e1·· tine '·i t~1 ed.uc<-.t ·~·lal r-ut ~o i tics L1 the sc~wol 

)ro ·-r-...r.1 ,C&nce lling contr acts {'1 i::;suin. c.i·Jlono.s. The instructions <:'lso 

ur~0d but diG. i Jt ec~ir\; t :1c est .... .') lis ~ne nt of :r de ;dvisor~r Co :~:-1ittee 

for C"~ Ch trr de to OG CO', 10sed of' o·Jresenr ti·.,r-;:::; 'J" ~ CL lo:rees :. 1d ernloyers, 

Such Con it cos· oul-: 'Ct i1 ·n rG.visorv c:--)'Citv 0'1 such natters rs the ,; ~ 

dGter:-1L1afL~ '1 o·' ::: unif or l contr-ct for 1, t : G >r - v--.il l .. _. rver:-o ;e rrte for 

j ourne:rmen ' coo )0 l

1

a ti jl r·i t'1 school :- .ltho:.·i ti ~ s ' Lk sel ection of r )'))."6::1-

tic-,s , !1rt.tt-rs o_· .:riovance either O.l the Pl'rc·1tice or tr.e c 1"Jlo:·er r.n. 

oth-3r m;:-.ttcrs. 

Eu · e~ 16 , l S-35 , f .rth- tl r oe st:-.t G cOimi ttens 

hf'd "uee.1 r r_l rove J by t! e Secrct.-'ri of ~"oor . Jlho 

org,ni zetions , 1lpns rncl )01 ic.i es ':f's co 1 )l et(:;cl. 

,";:..-:. :orty- one )l~'ls 

·r ounc. .. ork o::' he 

r: e r eL.e r [ l Gon:1ittee on A') Jre!1ticc :'r Pini·l · G..i~ not coas·J to functio 

U)On tho L1veJ.iJ.C1tio 'of the --C'tion, l Indust ric 1 :S.Gcovor~r ... ct. ~xecutive 

r d:er 675 C, ['S rrell OS thG ~_;erlcies C:i.'e<:'tec:. t:wrcund.er , rrere extend.ed 

b:r E:ceuctive O:cde r 7076 , issue0. Ju.1e 15 , 1935. S:-nction r.s fur th(H given 

1 is Corn::1ittee by Executive OrG..er 10. 7086 , cref' int; the E;:-tio oJ. Youth 

- d.ministr ::.tio.1 one of the objectives o-'' '7!1!- c:: · ·--s the 01.1 1lo·rment --nd epp r entice trc-i inc of the y ouths o: the natio~1 . L) :2he ::Ptionr>l ·louth 

Ad:'.1i. tstr tic-n h~s dcsit;nt'.te<l t~1u Cormi ttcc as the ccenc., for c~rrying 

on the ~~J n·ontico ) he s c of its ·>rob rcm rncl 2. rc cesent, tio:1 of he 1;-- tio·1e1 

Yout1 Orgf'_:ization h:-s 'ueen ,,~)pointed to tha ::·c~~.·..::L'01 o!VJ~ ttce . In :D ece;-1-, 

b r , 1935 , this CorDi ttec consisteu. of thn ::ollo"ing )Crsonnel : 13/ 

. rs. Cl a r -- i ·• Joyc r , ( Chq,irman) 

Assisto.nt Director , ivisi on of LAoor Stn..:1 d.FrLl.s , 

. S. Dc~er ~aont o; Lrbor , 

Altern te - ~r . Uillinm H. Ster'. , A8soci~te Director , 

• S. :>nloymcnt Service . 

Dr. ·

71 r v.:1l: Cusha"ln , 'chief o~"' ·Indus trif'l ~d-q.c .... tion 

Se r vice , :i:hvision Voco t ion Educ"\t ion , Qf , ice of ::...ducctio·l , 

A1 te::.·1 c. tc - ii::c . l.. • Gillin :to_ , :,ent , Industriel 

Jcluc--ti n ervi c 'J , ~ivision c-- tio1~l ::duc."tio·. , 

i':'ice or ::duc .... tio·l . 

12/ < ,e 1 , '·ul.otin l;o . 2 of :.,et.:e1•nl o~1·.ittec on A))ronticc 

9845 

Tr ai'nin_: - E·;:Libi t 3;-~ 

7.' ....., ..... - . 
- 39 -

Mr. C. R. Doole~r , J:~1< .:_;ey- o+ Indus tricl :ilel: tions , 

~eco1zy--Vr cuu.;1 Oil Con:)<',llY , I nc . 

}:ir. J ohn P. rr ~r , Prcv i rl.·:nt o·r· th,; ik:tal Trnd8s 

De .)rrtmG'1t , Arn -·;ricn.n J!'e clerr.ti •n OJ.. L:-'bor. 

Dr ~ U~1. r:r H. S. }:Iny e s , Director of GuiC.D.nce end 

Plf"lceDo::1t, ~i' .tir nal 1outh Ad.J'1 i n istr."' tio·..,_ . 

Dr. 1. C. Hn:;.·shc ... l l , Dir.;ct or, :Jivision of Revie'l' , 

li .. :A, .Al t orn .,_t e - Dr o He rrcr ide i s" , Chl.c'f , 

Code Aut:::10rit.y Ad: .1inistrr-·ti nn Unit , iLA • 

. · I:r . Uilli;n ? . Potte rson , Exec1ltlvc~ ecr .ry . 

':'E1 ilu tl e or,.:;n;.".i Z<' tion h.:· d. :.•G on lr.r. :> ' 1 y COiT1l e tee:. t he c tua l numbe r 

of a ·-pr entic8shi .. ) c ontr<'cts effectGl· .. "t t;,_e tir10 of inva lid.[1.t i on of code s 

>:r · s no t .gr c:· t . i'.. r c·•ort o;· cO.tltr· cts el "'s :i.~i ·::J(-;_ ~1y tl·rdo s :·nd nclust ri c~ s 

pnd. b; st..,tes i s cont.a i noC. i.:1 the Co!1;Ji t tees 1 J.e··;ort. (I:xhi b i t lJo. 33-A) 

This r e )Ort shO'"'v tl·tc.t o·1 t.hli'w 1 6 , 1935 , the 1~uub r of EU Jr entices UJ1 C~_er 

cont r 2ct ''' s 353 ; :1UIJ'Jur o; eo)l oyce s 140 ; n•u 1;)cr of oc cupE~ ticns 62 . 

rhe occupntio 1. s c.ontaini·ng 'the e.r-~tJ st un r or -'~J~ ent ic es ··:er e thc:;t of 

? lUJnbe r, in ·.::li ch the; ~ .. ere 62 c.Y)renti ccs ; 1:i1.chi:1ist , c ontr'.inin:; 52 ; 

Fib r e Ue2.vor 42 ,c:.nC .. T·)Ol i :eJ:e r 30 . The st['\t e s conte.inin,:; the lr- :c ;~; es t 

number of C. .iJ re~1 ticcs in the orc-:.or n~-_; Je c'_ •el~8 :Jisconsin , 220 ; c~:::> , 50 

a nd i.I i chi_:s::.1.n , 4.4. 

VI. Conclusi on . 

The r.1ethocL of SU'JC.:rvi s iol". lw t h e 2: c:.:..~e l' l Gov2 r 11ment of !";ry r entice 

tre inin:;q i.~ fer s in stwerr- 1 res-.; c c t t> :fr o•.1 thc:.t e·.nlOJG d in the r egulntion o:Z L1dustr] t~rou _;h ~1e ~:RA . ~he :follo·-rin · nilJ. be noted : 

1 . hR.~ f unc t i onec"'.. ·•ur e l f <.s r iede~.~ l r.;ency. The a:·) Jr entice tr;o inin~ ·Jr ocr ,"T•1, h o1eve r , i1 r oc eedc d norc ne'"'..rly U}JOn stetr; line s. 

The C1ctivo rdmini s tr:· tion of r··J·)re nticc· ~. ...- ni:'. 3 i r> b·r the St2 t e Com-

;_1i ttee suo .jt-) ct to ,~ Gcne ::-."' 1 Su·)ervisicn of t~ l8 ec",_e ~~~al Co:1: .1i ttee . An 

o·:"fi ce r of e1·" St c- te Gove rm1ei1 t (c. e·)l' •::so nt ive of the St:--.t e L<'b or 

De-pal·tmont) i s c-1. !"1G L1 er oi' the St<'t e C,>il:litte c . The StP.te ::~ Tlisconsin 

h c-'l.S its 0'·::1 0 n r G;'l ti c e tr::>.i '.! i ·,_; l{'-::7 , 'ihich i s [ld.1iniste r ed. b:r fl. St te 

Cornissi0<1. I n denl in,.:; ni th t h is s i tu['.tio·-,_, t1_1e Feclercl Corm:li ttee Sir'l~J y 

desi..:;n~tcC. L!is s ·t-.r te ;:- ·enc r ," s t!1e St_! _t e Co:1 dttee. I n f:-ct , the a drninistr t i ·1 n of' J::' ode:::rl Trc.inin:; h<':;_; proc ceclcc: u:·)On t he i cle<', of" coo•)-

ere ti ve J.rl OV8LlG:i.1t " i th t:1c st · t es rath0r ~lF'.l1 u·-1on t he nssun-Jtion of 

exclusive jurisc3.i cti o·: i n ,the :'et.<.e r : 1 Gover:1:1e :1 t . 

2. J:1h ·3 Ad.r1inistr ;· ti ~l c:C ~Tntionr l Industri a l Re cove r y Act 

1v s c e n trc:;.li ze( :..... ~r i n ~.~r· shi:1[; t o:q , J . C. ; t he AcbL1i s tr.?.t ioh of 

a1T e~1t ic e t rf'.il1inc ·res l oce.lize(l in t he <' re 3 ~ o·Jor c tion. This is 

close l y r cL -t c<i t o t he ev ~ls o1)se::.~v <.t ion. :-io·,e ve r , the first r efer s 

9845 
0 -

t te ... ti LS of , flic. o1 ?ccl~1··. <'Tl.C St··tu Sovcrei ;ntie r•hcre· t' is 

;c ts tl · 1·el <' ivt: L

1 

.. i·'~crcnc~s i entr:-lj,z""c' ·· '- · .. cc.e··l~r...,lizcd 

'"':U horit . · cotu'_,e , even th"' r·)pre:.1 ice t:i':-i··L!'' n·o T<'l '<'S not enti ~;;l .. c~ "'lt_.~liz~..: .:-s e .er· 1 llD rvision " · reserveC.. i:n he Com-

.. 1i eo . 

3. In .v <•d.ninL,tr tio·1 o::' r) 1rontice l" ii'.i 1 · ther ..... hrs 

een c ;nsicler bl~r l PSS -., o· 'Gr , 11c".. Ltfluence b:r ind ,_s trv thr :.1 und.cr ::::-~ . 

0 e ')::!. t:10 )ri·1e )rinci ·)lG o~· 1L · ,. s scl ~· c,overLme nt of ind'L strJ· henc" , Ol'E,Mizl'tion uf the individuC'l i 1dustrics re .;er'·.less of l ocali y t'nd tl c election 01' code cutl.ori ties. 1Jhile ·~'i nal rction in ost. 

-l[' tur · '7<''> reserveC.. i·1 :i.L. ~. , cctu..: ll~r t:1e rocolru"Jcncl.rtion of the code 

au hori tie 1:-..·evi'.ilcL:. unl ~ss such r c com: wnd· t io;1s con tr0v:.e nflt d om ~ ba~i c 

··wl icy. For e:-::r:,r •lc , in ore:..:-..'' T'~ :1tin. · or de:1~ri n.~ e ·o. nt:.<,>" s the 

recomnend ..... ti )llS of tl"c cod.e aut~1ori ties ~re fol.lo·-.ou. in .rob:--"Jly not 

les > t~lE'n ninet· (90) )Or cent o:f.' such orders. W In•'.ustr7 is f'~so reprcsen e. in t~1o .... c1nLlistrntion of C':nrentice tr'"~Llin,.:; , but no to the 

S£' e e .. ·tea • On the :,eU.e:·n1 Con:1i ttec thtr ~ is one re:)~·esent; ti.:e of 

indu..,tr · , .~.our r'-nr.;sent<tive3 of "..·:.:G'lCies of tl.c Fet:.~.:.~:--.1 Govern-Jeat 

."~nd one of orL:' ni ze0. 1 ·~bor . Pro,)ortionc? te rc r cse.1t t io:J.. on t~e Stl'.te 

Co!,~ri ttee is c:..bout tho sene , the_~~; beil1~· tl r e re·,)re3cnt:--tives o::' the 

:Trtional Gover1ment , one of the. st ~te. <'~Or :Jcr•:--.rtnc~:t , one of or,s:--n ized 

l<'.bor e..:1d one of industr:'• I't :.,ill fu th.:;r e 1 otod that t:1e re·)resent tion of indust y <'ncl l['bor is ec:_ur.l • .As 2. resl.J~t of the :-.bove set- u) , 

·her.:; is less "'o···e r in nny p'Lrticul<'.r inte:test or cl.:'ss 2:1d ctron . .:,e r 

;;overnment?l control . 

Ho•ever , it should be eco~nizGd thi't ti1e orgGnizntion :':1d f'.drninistr:--ti n of the eder0l A1?n rentice Tr ining ·1roc r <'.l'l is not in rll r esuccta cornE'..rC"ble to the -~o k -.)erfo ri'lCd by ~-=-: . rhe forr.1er de~ls ···i th 

El single )roblem , t::w L tter ·~ith c9 vn.st :-'j1d con1lcx VP.riE(ty 0.1. 1Jr obleJ'ls . 

evertheless, it is l elieveu 0 stud:,r m_ sone of the fer>tures above referre~..~ to as nell rs r> stucy .)f the t'.clninistr~ t~or~ of e:;:e mti011s to 

hoi•Je,_,.orkel' "llLc h<:mdice·Y·Jed ,-orke· ·s nay develo~J V['.ln;·~)lo su~;r-;esti ons in 

:~e )re~)r o.t ion o... ....1~' future federnl lec; i slP tio·: to regul2.te incl.us ~r , 

s: OU~d SUCh future leg islo.tion ·oe c r:1SitcGl' 0C, .• 14n/ 

hel~e i still on nJ .. nost li:1itless. fiel d fo;r the t r Pininc of e•nlo•re 

in ind.ustriol occUDDtions. A lrrge lercont(. ·e o e~~e!lli;tions "ere b. sed 

U110n he grounc tl :-t sl:illed · crkers ':'·e~.-c ot <:VC'.ila"ule , es·:>c cinll-.r exe-1lltions to crni t e. nloyces to rror k: in e·~cess o::' th·3 r.1.:-:cimun hours. ~:::

e ntions fro·· nxinU'J hour -Jrovisionu constitutec· .. rJo r e them 50 )Gr c ent 

or - the to al cxerr1ti01 s . 15j The. fnct that e. r"~loyGrs r;ene r olly .·e re 

14/ All e:-er:T;_Jtions ··:ere revier:red b~r tho Rcvie · :Jivision - Severp~ of 

the · ri t.erG of this His tory ':Gr(.; in the :Lxe!ntio 1 U11i t . 

14a/ See ~so II st.,te RecovGr)" Le:_:isl.:-tion L Ai.: o; ~ ~CLGJ.';-1 .n.ecovcry 

Le ;islr tiu.111 Le,;rl Stuc;_i,;o . 

15/ For· 1 horit,:,r for he <uove st~te·'lGnts , seo ::.ot0 14. 1Lis U:1i t 

has lso oo. )iled · .d.iges t of OrC. "rs [T":l tine f'j1d den:ri~1::.; e::el:tr>-

tio s clrssified b · Grounds. 

9845 ~ 
- 41 -

~·ill in~-- to ·x·y T.10rv t l1r' n tha norrn".1 r.:-'.t e 0 1 _)ro.;,r for overtime rroul d 

in,~.l ' l"L-.' t! ... sii1C ,rd. t y of their st .... ternents in this res·Je ct r•j1d th: t 

it '7<'" not in i;' ct )rofi t·,'b1c to hirG t fl" U!1e;a )1o:red 1:-:.'b or tne~.t 'f7r.s 

"vailpblll . The si tu<'ti on e::dsteC. in inm.ulle}:;-...)1 J insto.nces ,_-·here in 

<'. cor:linunity in ,·rhich -lte ~...- --·r.s l:' r :.;e lli1Gf.\ 1l oymcnt ~lG e rns ,..,_l so C'.cute 

s:tOrt~ ·_;e of t: [li ~"J e ski1lecL 1 n or . Th is cou l d ·b e ;-.. l~ gc y al l eviated 

:..'f the e ·t onsiv8 ) .LO ';rrq of "')_)reutice trrinLv . 

I nformc.tion on this subject i :J Dlso to 'be fou.pd in IIPolicy on 

ITr ·es 'ue1ow' the : iinimuu 11 , Uork I:C'.tcrL L; 1;'o . 45. 

9845 
• 

pl 

ri in _. Exem11t i 1~ 

II . ·c ni1irt ·· tivc C' -~ r" 

III . ncl ~i 1n 

I • 

S .cltcr"'d ·· 1-:d. pc are c·.r 

r _.,t t· ."l;l.1C~iC'"'~"~'"'0:) {_ ""'lCr:;; 13 e 

2 -

11:0 le in" ti t·.1ti _ ··!:1ich pr vice c1 -

·.>'1C.ica,._- ec """~€'!~ :10 arc' th "e unable 

r;cc. c cmplJ~y11 nt L1 t.·l"i .ess ccc'l.U'""' ·"' ,.,·1y~.:.c 1 , mental ;r t:1e:c 

G.iGabilitic~ . ?uc:·e 2-.re "i1C t>ree .1~.C:rea "'~ L1crc i:1 tituti"'J1S i1 

t: Ut itec.. St<JteG . I'" rtar c -n 1"L·'-'li7ec:. t·1 ...... t t .... eGc inctituti 113 .... uld 

n t c "' .. 1~1ly ·.7i t: many -!: L':c c \~C 'l- • isi ns . :Jn ti.1e t:1er hand t.1cre 

:·a: ."'ide.~blc ..,bjec:i. fl~~:t i,_·ust·· ccau3e ,f t:1e c:mpetiti a 

fr Wl ~uc:l L1o ti tut i n., . 

'J:1 FcbrutJ.r:· 18 , 1934 , '1 c··T, .. issi n :1a-.. <J.j n"'i:1ted by :-'ut;b S . J Jhns.,n , t:.e ACP'linistr.:tn· ·.f :T=<A, f~,_. t>.e pur) se f b~~Jesticatin, t:.e 

_•r•ble.n )f s.1elterecl w rl:::::n-,s [:.:-.6. t r:v1. :e l'ec-tnr1e~1Ctati n~ f l' :lecesna::,· cti -~ • T .. c c nnniosi -~.,_ ·tas .~d.e -~) ·: the f 11·"'i11('! 

:J • F···ed.erici- ·; · ci.Ylard , \.;:1i·1ersit_ .: c:.icr.tc.,') 

'!1:..· . !:C-:tr :: . St:.L.ivan , :Ic..ci ........ l ·1.e:1c~·oilitati i1 

-~G~ cia~iJ: , St . Paul , i11nen ") ta 

:~:::- • . ta1lcy P . D:l'lis , C~mritv Or~-a:1izati -;: :3 ciet;r, 

.Te · Y ::.lr City. 

II . .A.o.J1ini s t:.·a ti ve rc .. er3 

o

1

::. !'e3ult --:.· t:ic eff' ts 1f the C"'r:• .. issi n , Ad..rili!li"'trative 1~der 

- J . --- 3 , dated !!arc 3 , 1::?34 , --,as · ss·~.ed -,~~ici1 created a c,c::eral e::errt::Ji :1 t _. all nnel tPred r:,· k h ps U) _ ...certai~ c ndi ti ns . r.1:.i::. r<i.er 

c'.efinecl. s'·.eltereu. ,.,-r;:s~-:-}1 '"' t · e cl:arit':lble in~tituti~n ·r acti-.ritieo 

.1.ere : c nc.ucted :1 ~t f~r :--:c~f i t ' bl;.t fn· t .e 'l"l.tr' :::e "'I :v· VlC.ll1__, rcffiU.llerr .. ti·re cLrl'j nent f·r ··)Il1'"icallv , r.e2·1tally a:.:t' c- ci::tll·r >. ::.'ica--··•eG. ~ ..... ~ l;.i "' 

•rr·.ers ~.:1C: -~-c- videC: t: -.t an·- s.-:.eltcrec: ·rr:: n·;) t ·:;e c:1titlcd t.., the <I ... 

e:~effiY'ti"l1 '"'l"l"'ulc sit;:l a pledc;e t t:1e f·ll--ring e_'iect. : 

98i;.J 

1 . ·-..,t t er.r·•l -y ··.1in "'r:; l..L.-.~.c· ~ ixtcen ·rears -r ac;c 

E'xccut "UCh "8 ::.rc t:.e~:.., ~- ·· i·1st .ucti '1.::>1 ,,lL -

p ::>eG D.S <"'-• ..,.,"led b:·.r n. :::-:, i~_l[l C·l,:mittce '"'Ub-

:-equ..ently "l!' vided f- ; 

2 . .- t e:1.r.-c.~e in dertr.ctive :wice- cutti:·.g r 

... :~7 ::.or unfair .net:1 c. f c...,mnctiti n ; 

..:> . :- t t •;riliully . ...c'1.rnpe:r retH:..'' t:c -nur]•·:;e" 

f r::itle I f t.e :T,..,ti ... n·:.l In-.·ustrial .ec:vcry 

;..ct ; 

4 . '1:: c pe_...,te 3 f:1r a:~~ -cible ;rit.h tl;.e :.a~i :Pl 

~c ver .. _ .JYlini ~ tr t i r_ · Sind ---------------- 1 

r. 
5 . To c~rry out so f:u a : Y"lo r s i ble ~1e i Dtont .:mel 

cpirit of the Ja ti on .. 't.~ L lc· ust ria l B.ecov ery Act . 

') 

A ~m in u· ti e :::-r~ r ··o . X- .'::8' -' whl ch wao ci{ ncd :t··.y ll , 1J 3< , 

a!.):)o i '1 te .-l c 1c bti. '.ll S~te tP- d l.::::hor Com.rn i t tee <-, n._'. '•r oviC.ed fo r 

t l1c de oi,]l a:,1d u sc of ? '1 ;- 1\Jl'Jpria t e L 1sic;nia .?.ncJ. sp ec i f i e d t h e : orm 

OI p l c d:::c t) be- vi t·ne t'l ·o,.· o. ti J. s~l re l Gh ps .:' .~ld f \n·tbc r 

l' O'l1.~ir cd ~ s .. .!. i d. CoLL'li t t oe t o G..c~ ;; "'. c t ·w sev P- r c l e:cocr uphical 

rc . i o.1s o:. t Le 'C'ni t ocl. Str.tec. ic '1 v:e rc re fc rr ocJ. to in Ac: ministra tive 

' cr . X- S . Tllt- nc r son r.e l of t !w Co::.>l.i Ct e o a~ >0 L1t ed. ·o.nc: er t h i n 

0 C:e .~.· . ·~c ,... lo.J . 

• 

r.i: .. •• Oscc..r ~J . Snlli·1aY1 , Pre tlc , ht.i'1 :<.'l.l .Rs:1ebi lita tion 

As,. oci,ii on , St . P.<1.ul , l\!i nnesota . 

1.>~ . Olive r 2.,. . -r (nn , r i::.wa uJ:o GoNl. Wi lJ. I::• .. u strics , 

Pi l • 'o.1X ·ee , Wi s c 0nsin 

}.i:..' . Peter J . Se l mnn , ~ccr ta ~,- , :Bl'ooJ.:l yL I r:dustria l .H ome 

fo:;: t'1e 3 lind , Lr 'l ~. '11 , ...Je vr York 

;.Ir . :Cc~vJe>sd. ~io £i 1auser , ?r c ::· i C::.c11 t , Al tro rk'" h ops , 

':;.\ ::~ :ar on:z: , l~c' · Y0r lc C1 t y 

1 : :: . J " r.u1 fT . : . .1 it.1, J:r ., Di ':- e ct c r , I nstitut e f or t l"'.e Crip p le d 

a.v~ .2i s.::·') :cc.l_ , ·Tcvr York City 

:'lev • .J : 0 1 GrCJ.dy , 1:- t i o::.1a ::. Cor:f,: r e-'1ce of Ca.t ho li c Ci1ari t i es , 

Wasl1L1gt on , D . C. 

- r· r 3 · ·· .h<imL1. i.stra tivo Or(e r J 0 . X- 0 ::l was lSGUNl J uly 2 , 1934 , a nd p r esc ri be c~ :.:''l1

.les ~: rc::;ul a tion :; -fo r ~1e i s s un.nco of l abe l s to s~1e te ed 

\'·!Ol'l:s!lOlJ G a :1c'. t l1e u se t .w r eof . rJ, :Li s Or ~e ~ , ·as en _ecl.. by .Ad.mini nt rative 

Or C.e r i:To . ·-- 81 y;h i c11 :m:r ei~e 'v bc . ""·'. · f t. c · r evisi ons of €r d or !o . 

1' c' r:lini:trat.i7e Orc:,_x ~! . X- 814 :J id.c ~ th-':l.t tho c ommittee s hould 

iss ue ln.be ls be~ rl l:g the 1~it . i n si e;n i ·;" t o s: 1 t c rc G. wo r kshop s a nd co lle ct 

t l1e :..t.c t ua.l anc";, reaso:rw.blc c ost t J.1ere of , t o pas s :Jn t h e qualif icati ons 

of a~Y• ic 11t , Eud t o et ne ;r~:,.eLwr ~ no t t :1cy carne 'Ni t!li n t l:e s c ope 

of t :iw s :1e l ce r G. norl:" h OJ_) exemp tion , cU:b ,jec t to the di sapp roval of t h e 

dm ini atr , a nc. L1 .:>::.;lere.l ··n·ovi._l e c: :.fo r the sur·e r v i sion of 1c tc ed 

wo:dmi.1oy cxel ~lJ ous ~ ) Tov ic:.ec:. f or L :. ::;~ .. o .Act . 

I II. Co:1c l u s i on 

A c om:9l o t c ~ t on.r of SbcJ.t c:.·e:: ,.r:o-c -:s ~wps > .. ':t. ::; b een written by :!i ss 

Eff i e Lee 7·'io or e , :i oc-.., tivc _tLs st [' .l ~ c f t:1c Puc li c Accnc i c s Divi si o:'l , 

~1L. a l::. a Execut ive Sc crct:;.r:: of ~1o ·r<.t'ci on::.l s ::.1cltcr cd Ylo !'kshop Corru.1ittee . 

I t i s 1e o Ul J.ecc ~s3 y t o t !'eat :ne r c t :1e a wninis t ration of t he committee . Gene ll ~.r it 'J b e "' tat cd , ho,:ev '2 r , t h.t.t t h o c on f li c t be t ween 

L1d.ustry a nr'_ s "i.cl t8l'8cl YlOr b::.hop s Y/as l a :..'{':c l y eli ili nat od anc. c?:;cne r a l wo rki nc c on di t i 'Jn s wi ti.1i n t he ~:e l terec-:. vmrl::sho:i_> G ·:e r e c;rea t l y i m:> r ov ed. . 5 

2 

3 

4 

5 

See E::hi bit Fo . 35 

Se e EY.hi "bi t Fo . 36 

See E::hi 'oi t . 37 

Se e a lso , 11 SJ.1e l t e rec1

• ks:ho s u..11der ~! ., 11 by V. J. Clarke , a ml 

Leo , G. C'rr nis :r,""~t on tu.c:_i"" 
J . 

I . Ce:i.· i.c-icat of Com:n li ;-> nc~" 1cquil'ed 

11 f _. i c' c r; 

II . ricin of :S.·cnroviou t i or~ o·1 

Crovei'nJi,ent ontra t:; 

III . A~~ini~t~ative J fe r 48 

IV . Execu~i ve ~~c • :o . 6767 

In ter.t.He C"' tio. lf ~xecuti vc 

')r :;. :To . 6?67 

I . Conclu::-irJa 

=-..~r ::): cutive :tclc r :·o . 66461 dAte:J. . ·.a-d'l 1-! , 193-~ , it YlaG ,,.t·oidec t!:at e ll i :1vi t at ions m;\2e 01 be:1a.lf nf t~ e Gni ted State:::. o· ernme t to ·oic· c...e rs ~i.10ulc ·"'r ovicle tl ~'c 1w bi d shoulc be consiJ.erec~ unle'"',.. 

t e bic:Lel <" certified t <"'t 11e -a~ co:n-pliii:.~_ ·rit: t!1e code -co -,~1ic': 11e 

naG subJect or if t:1e bic' c· er 'a3 :1ot o1:' ,je c t t o ..., code :: ...t he ··oulcl 

comply •ri~.~c t:~e President ' s :?.eer1plo;yTient • -·'!:'eenent . It ·;a fur t~ er 

,i)ro· icet" tl1:J.t all (pvernment CJ:1tr:".cts !::1oulr~ cont::-i:1 ~ :·w')·..risi n:1 - o -

qui ri:1g cue£: compli 1.~ce but the;..... t~1e .: r.mini s tr.~ to:: •.--a~· :u:.t :1o :ci ze -:~ to 

:-aal;:e e:·ce·--.tions i:1 specific case"' . 

I~ . )rigL:, of Exemntion tJ : i C.de rs o:.1 C-o· erm.1e:1.t Cont acts 

ne of ti.1e ef:fec t.., of coce l")"''e :r _ tio:~ v1as t:1:'- t i:1 rru.~erous 

cc: :ec co~)etir:g bid,.. 'Ier i 6.e1 tical L1 ' -ice t:1ou:·i. L :. most insta.i ces 

tc.e Gove·nrent JaG b:· la· re ~uire d to co:1tract '"it:1 tie lo··•est ·-i .c· . 

T1iis was Glairre d to- have re-;ultecl from ~~1e ~·rice filinG ·-,r r)-

visi n~ of the c odes and J.. 

II e fu:.'t'her requirement of a ce tificate of 

compliance under Executive Orde1· ~·.fo . G646 . 

Assumin&; that V3.riations exir-teC:. bctueen prices file :- t:1e 

m mber~ £a ~a rticular inQustry , it is not entirely cl ar low sue. 

rice fili·1b l)ro·:isionr sultec~ in i C.cnt ical bids alt:.a 'h nccesno.rily 

the lie C:..er" fr~eG.om of actim. wa,... restricte , t o t~ e extent tl~"tt :1e could 

not -wir. belon hi e onn price list . A f'J.rt er stud.y of the e::'fect .,: 

:•rice ::'ilir.g· p rtbv iE i ons , "pecially ··ith '!:'es1 ect t o itentical bids 

" .ou.ld ~"'~r:.>cluce v:=tluable informa tion . I t ·18.~ often bee:1 a ,...Gertcd.. th3.t 

sucl ?:i.' ice ... ilinc ··Jro·,ri c:io:.s t e:1c

1

.ecl. t J create a ~1if~r~ :p rice st. ucture . 

'i'r~e !:ub .. i"::;ion of h:enticn.l biC..s 'tould seem to subst:1ntiate this vie 11 . 

,._.,!:i" opinion i~ furt. ~ r "'Up·)orted b y a Goverrunent rubliczotion 

e. ti tl ' , 11 --.e,_;uluti0n::; Gove1 :1ir<; :ic.~ ~ . ·rJC. ii'icc".. to :'fer Goveri11.ent A e:1-

ies ri~e::- 15~ 3e l o·l Puolished QuotationG 11 , bcin; tl1e <"1ibject .IP~ter 

of the :-'xecuti v c ~: A ·mini,.. trat.i ve r r ers :1e rei."':1:"ter r~:e ··red to . 

he 1 ortioi: of t.1c j"lublico.t'i'.m ='-P} lic~1-ble i:. tl1c follo ·1ing : 

15 

9845 

care of c3.c-es in ,-.-> .. ich t. e full 

v.:-triati oiJ. m._-y cause -:.ar . .:-.. t-'e to an 

a 

-

2 

,, 

.. 
- Li5 -

inL:ustry 1 s j)r-ice stracturo , the orC:or -roviC:_es 

t l-u1.t i:." complaint is filecl , t:1e Au,tinistTator 

for In ustrin.l Rec8ve-·1 J' :1ay after 0_ue investigatio:l a:;!l· . .Linc: in~ o ... ~ t:1e ~~·a cts reC:.uce tho a llowable ~>crce11 to.re , but in no cC>se to lePs than 5 

):!er cen t ·l)E; low the po stec: :':c ices." 

III, ACministrativo o:.~c:er X-48 

0'1. June 12, 1904, .Administ:cative OrC..er x-·::8 was issued , 'lich 

ex rm1~ed L1cl_ustry mor:-tbcrs w~10 s:houl."_ t~1or e tft c -" ·oid on cove rilmcn t c ontracts , froE1 comp liance with code r· r ovisi on s vrl1icll "'rohibi ted a ny of 

the foll rri~1[~ practices , aml suc~1 EteJ"lbers , notwi t:1st c:- 11ding such J1rohi.Di tio~1s , c·"'ulc : (a ) Quote p rices a;:.cl t e r ::.1s t o such asencies 2.s f ·rrorablc- ets tl1o ·e ~'E:; rmj tte <i to co1111.1c r cial buyers for like quanti ties; (b) 

Quo te . __ e / ini te ~> rices or terms , b ot subject to ac"..jus tment relating to 

L1creas'e ,.".. costs , f or dc.:_fi1~i t~ qua::.1ti tics a11C'. for d cfini te periods no t 

to excee-."_ t~1ree montil'"' (unless co(

1

_e -.wovicl.ecl_ l on ge r pe riod) ; (c) Same 

as (b) e :::c e•)t f o r inc-:.f'fini te quanti tics for ci.ef'ini te pe:ciods not to 

exceed. st._:~ m; ·nt:ls ;- Tc ~_lOt~ J)Tices ::.::.1(1 te ~ElS t o <.·:-,:')l y to contracts to 

·uccome effe cti·re t l<lo r e :1...~:,.1 60 ;_a:ls c.ft c r the ope11inc:; bid G.a te. (e) 

Quote p rices f. o . b . p~;int of ori c;in nnd/ or c,est L1D.tion . The o:cc.:.er 

·containec;_ a uroviso t l1.0t it s~1o 1: . 11ot -·Je::.."J,li t c1eviatioi1 from or abanc.~o nment o f cod ~ pe~ p rice 11 c ost ?ro ~ti o~ nYovisi ons . 2 

IV. Executive O:·c e j' l'To . 67c7 

E::ecutive Orc"e r lJo . 0646 was moclifiecl o~r ~xecnt ive OrcLer To . 

6757 , ap;_1r ) Ved Jw1e ,29 , 1934 , vrhicll nt:10 ::..~i zed a ny }Jcrson s ubmit tiNs 

a bid to t he c;overnE1cnt , at J.Wices v1~1ic , 1md.er 11:1 a~0r rovecl coc~e, 

shoulc~ ~1c:we -oeen file Ci. with t~1e c oc'. e uuti10 ri ty p:cior to the ir quotati on , 

to quote 8. ·orice n o t r.~g e }r~_!:!-.__1_~ })e;:c __ _~ll. ~. ~o_e_lo w _h_~_s __ fi l_~sl:_ l)r~~ which 

a ct ion ~."rou cl be deeme,,_ a11 a<leq_urtt e comp lia::.1ce wi t:!1 the Cocle requirements, if, after C1e -b ids vrc re o-:._Jened , eG.ch bi c'.c.er w:!1o quoted be l ow his 

filed ~) rice , immedia t e ly file d c: coyv of ~1 i s bid \!i th the code authority or C:.es i ._;:.1c:.teG.. ~"\_ r.tcy . If complaL.1t nas l"·:a &e 't o the Ac.l.ministl~ator , 

2 .. 1d he f01 .. md , after investi:::;atio11, that the tolera::.1 oe of 15 per cent 

resu lted ill. C'.estructive =n·i ce cutt i n,_; , he "ras authori 7od t o i ssue an 

admL.1istrative orcler j:- e c1.u cL1f: the toler:::.nce t o an exteat necessary t o 

:p revent :n·i ce 12uttine; , but in n o event to a toler<tY1Co of less t h;:m 5 

per cent . T~1e A( .ninist l·a.tor ':ras c'Lirectecl to cEmse a study to be mac~e 

of the effects of t :1e Orde r UlJ0l-: 0tanclarcls of fc:dr c om1Joti tion in sal es 

to pub lic and ;)riva te c-l;_stome;.s , a~ ,( to r epo rt Hi thin -si x rnonths . 3 

V. L1ternreta ti on of ~~x:ecuti ve OrJ_ er J'To . 676 7 

0~1 July 14 , 193·1 , LEgal lf mo1·a~J.c~ um }i o . '-19 vras s ent by Mr. 

Bl acb:re ll Si!ti t h t o t J.1e Lq;al Staff , L.1. ter1we tL1g ~xecuti ve Orcl.e r Uo . 

6767 , so fe.r as t he 1)rice t o l e rance exc 1~ )t io1~1 is co 1cer11ed , subst.s,:.1tially ::''.s f o llows : .. 

----- -- ------- ------·-· -----------------

2Ac-:_rninistrctt i7e Or.:~e r 48 , Ex~1i bit .. ~o . '70 v-' 

3:sxecutive Orcer :iJo . 6767, ~··:::h i'bit Jo . 40 . 

9845 
( 1 t .m ... of t!. -.·ce:..· n"1· .. ·t of no 

exce...,tio: ... a id~ r e.1t elo•' file r ieee 

c uld ·.vl.r• .e. t o.. c>: cie::; ·1itl o 1t. code 

·1iol n 'IC. ho ·. r ~ultil i:1 n:.·iccn ·Li lo ·: cont 

01' C 0"1 statcl i i! U.:' 1J TiCe::; , o!'OVide , t'v'l'~ t .. le 

i.'ice filed , f··om \ 1: ic: tole "lnce ··:~.s · lo11e'' , •a.<· a 

·lid ,,rice u::1.er tf~e C"'\cl.e iT visio . (b) A:.. ... y le(;al 

i: t r1) eta ti n of the c- r>U::>f' '' .lC.1 rcqui re ·: .~ .t 2 co "Y 

of each tolC"r~·1cc io to · c filed ·.ri t!1 t'!"c Corle _ ut:lori t.r O)' a .• e:1 ;; , shoul' be IJa ... ed U' :>n its ·:•ordi:1, , ~-·hich 

r-as ·oclievecl ~~'G to ju£"tif~/ a:1 i-..terl)re~CJ.tion ttmt 

filinG c-uch copy CJnntitutcd fili:1g a eviseo. n rice 

·ri1ich then ecame < .vuile.bl"' a.., ::; ch , to all purcha.ners . 

(c) If L1e ;u'mini..,t :1tor found th."l.t tl:c 15 er cent 

tolcrar.cc ... ,.s rosulti l['; in dc<>truc tive ;:>-.·ice cuttinG , 

.:.c coulu red~.cn sa. .e to ·)revent "UCh result , but t~1c 

tolcrarlce reclu.ctio.1 c JUlC not cyceed 10 ~c:.· cent . 

:RA Jffice :·'"~.nual , ?crt III , c:ectiJr. ~GOO , ,..t~t~cl t!.o.t -'-'xecutive 

rc.:e:.· .'o . 6767 11 1~::; :1ot oeen ve:·y extei".::>ively o.pj;>lier'. , conscq_11erctl;_..· the 

~ roblemc :'lor! i:wol vee in Gover~lL e"l t Con trnct" l'C l:'.tG . .,_l··~os t exel usi ·1ely 

to .·o . 6 Ll~6 , 0::.1 ·nich t e follo:!i'1g sections ···rc oa.sed .• 11 

Since Executive rder ln . 6767 operated uithout t1e ~ece ::>ity of 

furt~·-er ::>"'le8ific ore' ere t:1e ·•:J.A r.rould in &ll ~:>:·obab ili ty have no official reco c~ of t!.e extent to .r!lich t~c p1·ivilege C'Jn1:'e· reG. b-- t}:.in 

o;rc..E'r ... a::; availed of . :;o 'lever , "!.::> me111ber". bid.dint:; :;,elov1 t11ei r filed 

ri e.., ~· e·re required to submit such pricE' quotatio;.~s to code alltn'"ll -

i tie"' or othe r confice.1tial a : .e:'lcies t~ c code autnori ties s:lou2.cJ ~1avc 

. tr.ic i::forn'1-tion . _ urther ot;;_d~' from t11is qource r~lit'~lt be of .,...,1-lle . 4 

-- -----------

3 ~x t " ' c1..,_ l vc (")ru.er lTIJ . 6767 , Exhi \.;it :'To . 40 

4. II '"'~ l · ' · ·· -- R · J rc.. t C t t ' C t t -u ~p a " 0 ........ c a l0.1Cl.o.lp IJ:t I·- . b. . l.O U"JV8T'~:le:.1 J .l T'1C s aJ;.C o;l r .... ., <' 

In·:ol'ri n~ t .e G,.e of G IJVernnent Fund,... , 11 b/ J orC.a.1 :J. Hill , A'r..i!1isr-.t:!.'1;; StuC.it>'"" ; c:r~)t r of 11 Acreemc:1tG "C.fer Section 4( .... ) ".ncl ?(':.>) 

of :· . : .R. A. . 11 , ·c C . ... . -iblin , i~..:Jni:1i'""tr~tion Stu .ie::: . 

..,845 

--

' ,_ 
I . Ori~in of J· de r 

I I • ;;,!. c Ori:' c :~ 

- 47 -

III . :)pe ro:tti L a::c I.:f_,.\.ct 

IV . Cnnc lucion 

P:- l '•r to :Cxecl. ... ti·;o Or de r "l:o . 6(·)';'8 , C) ,t:tibuti o·,1s to code aC:.r'1i:i1istr::-til1.1 1. expo::s os :1:'~c~ 'Jee:1 o:: ~ volur..tar:1 1.-~ sis , u; tc'o r a ta~1clard wo

i~io;:~ ::>ic~: P::ts c-:J·_te L.cd i :·, EJ:·Ywo ved c o,l.es arJ.d --:rovi cl.e d t:1at :em-bers 

vrel~e t · e c:·.ti tled tG •:lartj_ci;--.J.te L1 a:1cl sL='.re t"1e ·~_.e :1efi t s of the 

act1·rit i es of tl·.c Code Al. ~J.ority , e.nc;_ ·o'lrtici :Jat e L1 t~1e selection of 

t :1c .. Je.-.:ue::-3 tnereof u~- :--!:..:seEtir_g to <ii1d c o . .ip l yi n{; ·:i th CoC'.e r equireme~ts e.:l• s u stC1.L1ing t 'lCi r re ~so:1e.ble stu1.ro of ~.clm inistration eJCl;c·lse , 

ane t J ·be c etormined o:_; the ode A:1thori t y , subject t o review by the 

Administrator, on ~1e ·o~sis of V•) lUl:1C of un'"' iness , or other equita-b l e 

factors . U;.1der s·1ch 2. provisi on o::.t ri ·b ,Jc ~u to the ex;)enses could not 

be le~ally enfor c ed . 

In r.temnranc~un~ fro;n L-..urei1CO · E:.!"'la]>}J , Revi e1.1 i ·ri s i on Counsel , to 

:E • • :. J effr ey , c'r.-1.t ed J1.L1e :~ , l93LI~-'- • a s to the pu:cposes a:1c~ effect of 

:OO:::xecut i·re Ol~der ·_7 o . 66?0 , c.-..nc' . .t:r:..11 ini st1 tive Orcler X- 36 , it ,_,1as c t a ted 

t ~'la t t !1e Fresi (;_e n t i ssuect. t:1e executive o:J er t o mee t t l1e vociferousl y 

expr ess~lL :.:~ esires of n:e:1.:.1y L:.clust ries t .J flla}:e failure t o p2.y assessnents 

f or e_::-ocnscs of c ocle a·:1ministre.tiG:1 a vioL·t i o!l of t he code , 

~11e Executive Orcle ::.~ v1as e.l')-,rovecL on A~ r il t~ , 934~ 

I I . The Orcle:c 

The e<'~ontial part of t he or c.e r H9.s as follons : 

It ~"!as or derect 11 tl.w.t -L1e f ollor·L:..; clause or c:.ny 

a.p::-.ropriat e moc~ ifi catio11 t~1e eof s:lB.ll become 

effective as a l)art of P.:.1y c oce of fai r compe titio:1 a·~):='ro ved -Lmcler £:ai r'. Title (~i tl e I of 

·Jational L1c:ustri a l .L ecovery Ac t of June 1 6 , 

1 933) , U})On <::np li c ?.t ior. t :i1erefor (l ) pursu.:mt 

t o t l e vi sion s o:L w Code r;~lot r.c; t'J a.mel:dElentn ~1er eto or (2 ) b;.r o:c1e o:-·· .·10 re trade or 

L 16 us tria l o ssocic: t ions o:c ~rc u;os tru ~r r ep resen ta ti ~re of ~~e t:tEl.l'.c c r i nri1:..s t;_'y or s u-bC:.i visi on 

t he r eo f c ove r ec;. ·b y t1w Code , if ~~1e A--·!;linistl'a t or 

f or L1l'.u ... t r i c:d RecrJ·i ~· siw.ll ine~ ~:.at a:')rroval by 

h im of suc~1 clauses i :necessary Ll orrler to eff ec tuate t~1e ~p; icy of Ti t l e I of G8,i c. Act : 

11 1. It l.Jeii.1g i'ound. necessary , i .::1 orcle:..' t o 

lExhi ·bit ~1o . 41. 

2Execu tive Orde r Eo . 6678 , Offi ce Eanual, Pa rt V, V-C- 29 , Exhibit 42 . 

9845 
~ 

'c:. -

~ tppor t .e aC4mi in t· a tion of t. i,... coc.le a·.-:. to 

M'.int~.L1 t:w 3 ~~:1r·arrl;, 0f fair COL etitio:1 

e""t't.oli..,!:eC. j t. i" Coclc a 't tc effcct·12te t:-.e 

po lic:· of t e .t">.ct 1 t":.e Code A"lt"::>ri ty i3 att noriz d , subject to t:c a p oval of t!e Anmini,..tr.:~.tor : 

11 (a) -:fo incur re· S')na le oblir:atio: .... 

a3 D.l' nccescan~ c-:1cl. .,.,roper f?r t.:e fore{ oi1 ~; 

pw·poses un ~ t') .. eet rucl obli{'·ations out of 

fund" ·1l ic: may be raised ~.~.s . .~.1erei. fter .)rovidcd anc; :1.:ic1 cl .11 ·be held i:1 trust for t:'1e 

y . .11. '1ses of t .:e Coc e ; 

11 (b) To submit to t~le AG.minictrator for 

hie a~·proval , subject to such notice a!1ll o~y·ortuni ty 

to be heard as i.1e Dk'l..Y~ deem necessa.ry, (J.) an itemizeG. 

budget of its e ... tirr.ated enei1ses for t.:e f1re..:_·oing 

purpoces 1 :_nd (2) an equi t2ble basis ~)On · !lich the 

funds necessar:.r to SU}J~;)ol·t suc1. ·bud-;et shall be con.:.. 

tributcd by the members of the Inc.ustry ; 

11 (c) After sucl. bu<l: ct. 01:c' 02.sis of crmt. i -

bution have been a,'::>roved b~- t:1e A ·rninist:::ator , 

to <leterni::1e anC: secure equitable cor tri· ··tion 

as above set fort!! b'r all such mem.bers of ·c:"e L1-

du try , a:d. to that end , if necessary , to institute 

le~al proceedings tnerefor in its o 'IT'. nar!le . 

11 2 nly r:tembers of t~e I nclust y complying i th the Code 

a, d cor:tributiDg to t:1e expenses of its ac.Linistration 

as provided in Section 1 hereof ~1~11 be entitleu to 

participate in tl.1e selection of the membe rs of tne Co<.:.e 

u'.:.hori t;;· ') T to receive the benefit of i tn voluntary 

activities or to rnake use of any emblem o indi&nia of 

the :rational Recovery ..::.t..r.1i nistro.tion . 11 

III . _Operation and Effec t 

n A~Jril 14 1 1934 , Acl.ministrative O::cce:::- X- 203 rtaG issued , .;-~ich 

,, rovided fnr t:.e collection of expenses of code f.l.c:r'lini s trat ion , nonpa: . .lent of , .. :.ic!1 COi.lctituted a ·.rioln.tion of t~e coc",e onl~r if an itm~

ize<.:. budt;;et :1al.. been an·:.roved 1 and the cot:e at1.t:·10 ·i ty ttertified. t: ..,t 

the rnem·oer h:.td ·been [;i ven not ice of t:·w a··--..rovecL basis of contribution , 

that non-1Jayment ni ti1in 30 dr:.ys after suc:1 notice wa a code violation , 

L.at the emoer had a rig: t to ·1rotest , · ut 11-::td failec1. to 'l)ay or file a 

9rote~t . It ·res furt:1er providec t!1at no mem er,.. s: oulG.. be in violation 

of tne code for fn.i h.re to c ont ri bute t o a~1y i:;:~ us tr~ ot~1er than t:1P:. 

mic: embre.ced 1 is rincipal line of busine'"'s , out any code aut1 ol~i ty 

coulc' ""hoYT cau"" e to - RA ·1hy a r:101~ber subject to its cod.e , C11oul( conribl:.te to the e:;..."Penses of ""arne , in a;'r'_i tio:1 to a coi1tribiil.tiol by h i 111 

o m.ot:.er code or codes . 

-------------------

3

Adm ni trative Or~er :~ 20 , ffice rbnual , ... J.rt \' , --11 :Sxhibit <.3 . 

9845 

p. 

0! 
- 49 -

vn lv!ay 26 ' Afun,i ni strati v c crder x-·364 ' r!,1, S issu ed' supplementing the 

Executive Crde r and r sci nding .{l. dmini stra.ti ve ()rder X-20. It p r escrib ed 

es , regul ati ons ;_md procedure g overning tne collection of contri butions, <' 1d provi ded n s f oll o Ns : 

II Pending det or min ntions by 1L R. A. with respect to specific Codes 

up on cause. shovm by a Cod..e Autho rity or othe r wise , every member 

of CJ. trade or industry is hereby exewp ted ·from any obli.q;ati on . . to contribute to the eA~ense s of a&ninistrati on of any Code or 

Codes other than t he Code for the trade or industry 11hich embr aces his p rincipa l lino of bt.lsine ss, provided t l1at he shall 

suomi t such information and co ~.1p l:Y with such regalations with 

respect to such exe_m:9tion as N. B.A. Da y r equire or-p rescribe. 11 

It ,-,as not a p olicy req-;J.irement th&t o.. code contain the mandatory 

assessment p rovisions c0ntem_t)lated by admiEistra t ive ()rder X-36, but 

unl ess t he requirements of t11e Order wore me t, contributions of a. 

compulsory nature cou ld not b0 colle cted ( Gffice Ma..-rma l II - 1670) . 

SUbsequent admi nistra tive orders of interpretations, and g ranting 

exerrr_p tions pursuant to the· orde r \"e re as fo llows: 

Admi nistrative urd.er Uo. X- 36-1, dated C:ctobcr 11, 1934, 

held that an establishment ;.mich opera ted under more than one 

divisiona l or sub··tiivisional code, each having an app rove d 

budget, 'Has ex~mpted by pe.r aE;rap h I I I of Administra tive (.,rder 

X-36 from contrituting to other t hDn .. the ciivision or sub-division 

vrrhich constituted. its p ri n cipal lin e of business. (see Review 

Division pre cedent No. 63 , pa ag ~o h III). 

Administra tive vrde r X-·33-2, da ted Larch 30, 1 935 held. U:at the 

exem?tion conferred by X- 36 , did not extend to the purchase of l abels, 

and all members of the ir.dustry were obligated to p a y f or labels at 

t he ap ~r ov d r ates. (See Review Division· P recedent No'. 63, Paragre;ph III). 

A~~inistrative crder X-78 ra s issued August 21, 1934, providing 

that, pending further orde r cla rifying t h e probl em of multip le assessments in t he Distributing Trades, no orcle r of termination of exemption 

under X-36 3hou ld be con strued to: 

(1) Require any member · to co ntribut e · to any code covering 

wholesale distribution by him, except the code cove ring his 

p rincipa.l line of whol esale d i stri bu tion, provided, however, 

the termina tion should av} l y to any of h is busine ss othe r 

than wholesaling . _ .. -

.• . 

(2) (Consis~s of a simila r p rov ision as applied to Retail 

Trade membe rs). 

In construin~ (1) above , t h e Le sal Division, on Fe bruary 21, 1935 , 

held that a wholesa l e r was r equired to pa.y the code Authority for his 

principal line of business only on t he ba.sis of -busi ne ss done under that 

one . code , and. was not r e quired to pay such principal line t7holesaling 

code authority on the basis of h is entire wholesaling business (See 

Review Division Precedent Ho. 63, Pa ragraph IV). 

( 4) Ad.mini stra ti ve Order ={-36 , Ofrice Mnnual, Part V, V-D-21, Exhibit 44 . __ __,9_ 845 
- t::;Q -

.A,dminis r ati vc (;rde r X-122, t...pp rovcd ~ecember 14 , 1934, provided 

tha bee use of co lflict of the Grap ic Arts Industries Code VTith certain 

o her codes, any establishment operating und.er one or 1oore codes other 

t an the Graphic Arts Industries Code, wbich did not sell p rinted matter 

in competition T.ithpro ducers un er that Code, and which employed on 

graphi c ts processes ot fllore tl an nine mechanical employees was exemp f rom ·the provisions of si3,id code gove rni ng the collection of assessments for code administra tion exp0nses. This order ·ras rescinded by 

Administrative Order X-133 , approved January 22, 1935, but the exemption 

v,as substantially re-adopted. 

Administrative (;rder X-131, pproved January 7 , 1935, established 

a Si.-6l e Assessoent Principle for members engaged in retail distribution. 

It terminated exemptions gr anted by X-36 or X-78 , effective January 1 , 

1935 , which applied to t he retail business of reta il establishments, 

after whi ch, a r etail e stablishment , to the extent it engaged in retail 

distribution , was ·r equired to pay a single a ssessment upon its total 

r etail business to the expense o'f its principal line code .( 1) at the 

r ate of assessment ap roved for that code, or .(2) upon its principal 

line at the rat e approved for that code , and upon each minor line at 

the r ate app roved for each minor line code . If contribution as made to 

the expense of another code , based upon the business covered by that 

code, credit and deduction therefor was to be taken in computing payment 

to the principal line code . (see Review Division Precedent "o . 63 , 

Paragraph V )'. 

Administrative Order X- 139, approved April 10, 1935 , provided that 

applications for approval of budgets and bases of contribution should 

contain r e commendations to eliminate (l) nuisance contributions and 

(2) for exemptions designed to avoid inequitable contributions or 

article~ which ,e re not marketed~ se . (See Peview Division 

Precedent No. 63, Paragraph VII). 

t. 

Administrative Order X-140 , approved April 11 , 1935 , granted a i. 

qualified exemption of members engaged in a Principal Line Retail by a 

p roviding that separate establishments whose principal line measured X· 

by dollar volume , was retail distribution, ·ne re exempted from contribution to any minor line non-retail code governing a portion of the 

business, provided (1) non-retail business did not require full time 

services of 2 or more employees, and (2) the obligations of such establishments to affix labels, and pay the approved label rates, was 

not affected. (See Review Division precedent o. 64 , Paragraph VI). 

IV. Conclusion 

rhis p robl em is one of the results of multiple coverage . A concern 

even t ough with r espect to its own organization an intergrated unit 

might be subject to several codes. Each code may be totally different 

with r espe ct to contributions to the code authorities. (;ne code may 

contain a mandatory provision for assessment; another code may contain 

a p rovision for volun a ry contributions.. The bases of assessment or 

contribution differed. For example , one code would be based upon dollar 

volume of business, another upon p roduction volume, by dollar vo l ume of 

payroll, or by t e number of employees and many other different bases of 

assessment . Finally, the rate of assessment varied with the individual 

9845 
,... 51 .... 

in· us try s Vfuen tl e basis of •1.ssussnen t differed, it was difficult to · 

a.,certain Tihether or not a po.rticul a r member V'as paying double assessment or less than his p ro.9ortionate share. 

The difficulties wore in a l l probability not anticipat ed in the 

early daJs of code for~~ ations and these complications were met in 

individual cases as they arose during the course of admi nistra tion. 

The fact t hat p oli cy change d fr om time to time as. embodied in the numero s orde rs on the subject in.dicates that the difficulties were not 

entirel y solved, For ex~o , under Administrative urder X-36 a concern 

vri th 51 per cent of its business in one c;od.e and 49 pe r cent in another 

miGht be exempted from assessment on t:1e 49 pe r cent of its business. 

The result ~a s t he flood of ord.ers from a gr eat numbe::c of industries 

terminating this exemption . 

"ith the e~perience of the past no doubt s~me b roa d p olicy initiated at the beginnine of t he code making co.ulcl be evolved. This 

vrould involve as far as p ossi ble uniformity in t he assessment p rovision s of each code. If mandatory provisions are l egal t hen all codes 

might cont ain a simil a r mandatory provision . 

The same ~~i orm po licy could be continu e d in the organization and 

administrat ion of the code autho riti es in r e spect to asse ssments. Thus, 

a uniform bases of assessments cou ld be adopted = For exami)le, assessments might be based up on the dollar volurne of business. This would 

eliminate many of the compl icat ions end uncertainties, The re will still, 

however, be the question of differences in r ate s of assessments. Considered as a tax, there is considerable merit in the p osition that the 

rate be uniform in all indus1iries. Gn t he o_t he r hand this is opp osed to 

t h e idea of organization by i ndividual industri e s and. t he belief t hat 

each industry shou ld be resp on s.ible for f inancing its ovm administration. 

Whe ther t he latt er was adopted or not, it would s eem well that a member 

receive a si ngle questionnaire and a singl e notice ·of a ssessment, and 

that the apportionment of that assessment be TIOrked out through a clearing house or a system of credits of t he code authorities involved. As 

a matter of fact this p rincip le \rciS adopted in Administrative urder 

X-1 31 with re~ect to establishments engaged in Retail Tiistribution. 5 

------------------------------------------------------------------------- 5 See also Part D, entitled ttCode Au t hority Finances 11 , by 

H. P. Vose, of 11 Code Authoriti e s and The ir Part in the 

Ad.mini stra tion of the N. I.R ... L tt, 1 . R. A. Administra tion 

Studies. 

9845 
- 5') 

1 . 

I. _ dr.inift t~'IC l' 

, .r ·ra . x-,:n 

L . Tc .. ,: i t o :ci l c .:>p 1' t_Jn 'cr- .n ~-~ t 

r: . I> I )t Oll ::,.·a:. i~"!.l ::. Cocc - I . ),.1clu: ion 

I . Acir.lL.ist·· tivc r- cr ·ia . X- 60 

;,.c:L.;.:.i:::t tivc r..i.c r .Ia . X-60 , o t(;<.'. Fc':ru. ·.- y ·· , 1.934 , C)..C'1ptc.t t 1· : .. s 

·::.1d i:1<>us ric, i. t~r'l~,; tvr;:i tori s o: Fuo:ct0 R ·co .r1·l. H vt ii f ror.1 cocl.c s 

t!1~..r tofor.: P:"ro ~.-d. u:.1til cT~.~~ .... mbsr 1 , 19:4 , ·.nC: f::. o: co·:., s t !. . .: r c f t r 

}Y)~J cd fo:r · :ncr,;.oc1

. of si). v• ·:~: fol'o:rL,f' ·.lL d tee- f s uci1 Pl)r ov 1 "' . 

I t··.· 1U't~1Cr 1 r ovir'.cd , ~;,r:~t.- .r , t· t '.,1~ o'·c\· r r·.o1.lr' nJt :[_'e;.c t .nv 

"Xl.:rrptiv• or o::·copt i nn o± ilY L1· u~tqr or ··;c: ~0;.1 L: ruc :1 t ( r •·j to·.~ cs nd 

t·1·t the 8r ·t.:.'r .... ho ld nJt fL: .. ct ny co0~.. fo:c tr •l .. o:~ li.(U!:' tr ~ in 

Puerto rti · o or ~ ., .i i pr~s,r.t .bl· '11(; "1i c lac 1 cocl. ·s -:-- tr r~ r nd i :1-

C.ustl·ic }l.Culi r t~-- suc:1 t erri t o:·i cr . ) . At r ti " be:f orc t c. · c. :x:pir ~. ti an 

f the ~xc.r ti 1 t:~01L.by gr ntorl q_u l..if.:.f'd S"oci t i-:t1s i:1 c ith r 0 f the 

crri to ric~ could -·~)· ly f0 : ~ moclific tion of · coc1 ..... o -r the T' r ov l o: 

sc.p .r tc co.c . P ov isi on '.rs ·l e-o .. •·.:o for l ... bc: l s . ( *) 

I I . c'~"ri tori 1 CoopQ..T t l,on Ag r .., 

:By .AC'.rnir.istr t i'rc r6n r No . X- 81j , c"':.·tt.C1 Augurt ~7 , 9~4 , ~1l Admi:' ict r tor p·- r o·;cd. .n~ for rr. of t..r,.,. T-.. rri to:- ~. l CJO"?Cl' tion Agre eme nt 

f or P"J.crto 3.ico , :=:~ ., .i i " nd. Al .s'::. --~~ich '·1 .s ·tt - c hcc. t~ :c . (** ) 

T!-:.c grc ~~. cn t p r ov ided. t h t i t ·rould ... r .. n; n i n e ffe ct u:;.til ( .) 

~c·) r tL ccG..c i1·d ·bum '"0 .. r o·:cd ; ( )the Cl.c:(JUt ;)' f o rth.: c rri to r J 

orcc:c~_.( its tc::ni n··.tion ; ( c ) n ot l~ c- ti: ·;-! J U11.o 15 , 197-5 . lhc Ae;rc u!l<..I t 

f u!·t1\.. r L.cluc.·_.Jd :;:J r ovisior..s r :l· ti··-b to i'~Yidl.lr'J lO"J.l' ':' , ~ i t-.;. on .1 c o1.m-.::1s -

ti::>i: fo-r ov ·.-time , cxemj. ti on :Z':rorn n1· :d mur. hm.J_!:' i r. c odes o f omo [:ency n· i;;.-

t, :~ ·.1cc .:t.C. r :-)~ ir ··1or::, mi::i mum ·.r c s , oq·u.i t t l : ·.:J. ,jus t· .1 :L t , c.1iJ d l : , 

l_ .1cr~ :1( :Y rcr~ t i c os , h .nd.ic · ·) c. Ho }~\., ··~· , co 11c c t i v c b (~ L L1:" , :.1r". 

::>ro·.riri0"'-S ·1r.ich ··•rohi it~~' rr.ono·1oL. c ~ nc'- o ... :·,, ~iO!" of sm· ll mt .,.. ~• ir .... r . 

A 1 .i:1l. :1cl coc1.~.. ,., s 'J~lv tl:. t incluG.oc~ not o:. ~r Co:1ti:1Em t l Unit e.:.. 

St t~s ht:.t ~ ·.;"ii , Puerto Ri c o ~n( l--~:- f' 'c-:: . ;,. co<...:..,., r cor.s t ·u cC s 

~. 11~.inl .::.10. coo.c if it£: ".:.c r'ls , ( ) inc l uC:: -·. :'! st tCi.1r: t ..., to tlv .:~· c·1 t o f 

i tr ·p- lie Ji~l1 , or , ( ) c.il ~D t :'i.w t. ~ rc of i tG --.n-~1 c- t i on to .... ~: uc:. c 

~ny or .12. 0i the t :~itorics nc... posscc:<iol~s . ( *** ) 

--- ------ ------ - .1. r' -· . (**) Ad.r.:i:.irt:.· tivc 8 r ···r _ o . X- 8') ~.ncl Tc·r:ritcri 1 ·10Jh.; ~ ti on 

A:.:.r .::.1m:. , Exhibit Jo . 46 . 

( *** ) cc :· • .• A. :ficc ;· .!1u~l II-40.0- 4/'"'9 . 

9545 
Offic i:E''llor~l.r~cl. n :i·:o . 356 , i r " _Lc(i ;:ay 3 , 9~4 , au thorized the DeputJr Adni21i strator for e Te r ri tnry of Alas. :a, subj e ct to the sun erv ision of and r ev i cr: by t he :.-rf' ti·-mnl I nclu.strial F.ec0ver :r :Board, to g rant 

or den r e:~crT.1 t i oP.s f r om code i)rovi s i ons to t he ext on t t hat a code appl iec_ t o t ~""ls a ti ')n r:i t hin t hat t or ri t0r ;r, except t hat uch autho r i zation rras not t o E~.y>1) y t o the fo lJ. P::. :r: ,~ coO..e s: 

Can n i ng I nd.ustry 

Canned Sa l Mon Industry 

LUJT,be r and Timber Products Inoustry . , .. 

~1e y Industry (In cludi ng Up'D eme ntar r cc.de.s (*) 

Offi c e };emora.n<iu.m No. 357, (* ) issu ed I.Iay 3 , 1935, p rovided t l1at 

certain evis ons , i. e ., Part III, Se cti on 3231 a nd 3234.2 s hould_ not 

appl y to t he Depu t :r for Ala sk a in the exe rcis e of t h e authority g iven 

hi'TI . uncl..e r Office Ler1orandu.m No. 3 56 . 

IV. Concl usion 

T..:li s t o2;) iC i n c l u de s only t~1e ac3mir. i stra t i ve Orcle r g ran tin~ an exemptio~ fr an ainl nd c odes in the t e rrit ori e s a nd the r e lat ed Office 

Uemora:1C' a on t he su bj e ct. No attemp t is made t o treat t h e administra tion 

of cocle s i n U:e se t e rri tori es. Sp.:-::- l a l studies ancl histories have b e en 

pre-:9a ec~- and n ri t t en c ove r ing t h is subject, both generally and v:ri th referenc e to particula r t r ade s and i ndu stries. (*** ) 

----------- --- -- - ---- - - ---- (*) Office Lerno r a nd.um No . 356 , Exllibit rTo . 4 7. 

(**v Of.L ice Lle!Jor:mdtun 357, Exhi b it Ho. 38 . 

( ***) Gene rall v : "The Code Haki ne; Pros r am of N.R.A. in Territories" 

by F. J. DufficJ , Adminis trati on Studies. "Chapter 

IV of "Ag reene n ts under Se c t i on 4 (a) and 7(b) of 

9845# 

Al a ska: -

l~ . I. R. A. 11 , by C. A. Giblin , Administration Stud ... ies. 

History of ~JRA AdMin istra tion in t h e Territory of 

Alaska, o~r 1.1 . W. St ea d . 

Puerto Ri c o : Rep ort entit l ed 11 High Spo ts of lffi.A. in Pue rto Ricolf 

by Eoa z Long . See als o the folJ.u rring code histories 

appl ica l::le ol ~~ to Pue rto F.ico : Ealdng , . !o tion 

Picture , c ncl :Bank ing c;I Frederi ck Sartorious; ; 1 t s 

Clothing by TI'al ter }.;. 13arro\7; Cigar and Tobacco, 

Ha\'Taii: 

and Survey of Needle- -:ork Home\70r1:ers by J. P. s. }.:innet; a nd_ the Stu dy of 1Ie edl e- r·o r k in Pue rto Rico 

by J. P. S. !.iinnet e.nc.l Boaz Lo ng. 

Th e follon ing histories and stud i e s by Frede r i cl: 

Simpick : IIA Surve:r of Labor Conditions in the 

Princip al InC:.u s tri e s of t he Terri torr of Hawaii If; 

11 Hi gh Sp ot !:emorandmn1

1 af- N.?.A in Hawaii; 11History 

of Gr a:phic Arts in P-awE~ ii ano_ Re t a il Tracte in 

Ha11aii . 1t 

I 

OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 

THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, established the Division of RevieN of the 

National Recovery Administration. The pertinent part of the Executive Order reads thus: 

The Division of Review shall assemble, analyze, and report upon the statistical 

information and records of experience of the operations of the various trades and 

industries heretofore subject to codes of fair competition, shall study the effects of such codes upon trade, industrial and labor conditions in general, and 

other related matters, shall make available for the protection and promotion of 

the public interest an adequate review of the effects of the Administration of 

Title I of the National Industrial Recovery Act, and the principles and policies 

put into effect thereunder, and shall otherwise aid the President in carrying out 

his functions under the said Title. I hereby appoint Leon C. Marshall, Director of 

the Division of Review . 

The study sections set up in the Division of Review covered these areas: industry 

studies, foreign trade studies, labor studies, trade practice studies, statistical studies, 

legal studies, administration studies, miscellaneous studies, and the writing of code histories. The materials which were produced by these sections are indicated below. 

Except for the Code Histories, all items mentioned below are scheduled to be in mimeographed form by April l, 1936. 

THE CODE HISTORIES 

The Code Histories are documented accounts of the formation and administration of the 

codes. They contain the definition of the industry and the principal products thereof; the 

classes of members in the industry; the history of code formation including an account of the 

sponsoring organizations, the conferences, negotiations and hearings which were held, and 

the activities in connection with obtaining approval of the code; the history of the administration of the code, covering the organization and operation of the code authority, 

the difficulties encountered in administration, the extent of compliance or non-compliance, 

and the general success or lack of success of the code; and an analysis of the operation of 

code provisions dealing with wages, hours, trade practices, and other provisions. These 

and other matters are canvassed not only in terms of the materials to be found in the files, 

bu~ also in terms of the experiences of the deputies and others concerned with code for~ation 

and administration. 

The Code Histories, (including histories of certain NRA units or agencies) are not 

mimeographed. They are to be turned over to the Department of Commerce in typewritten form. 

All told, approximately eight hundred and fifty (850) histories will be completed. This 

~~~ber includes all of the approved codes and some of the unapproved codes. (In Work Material§ NSL. 18, Cog.!&!l.i§ of Code Histories, will be found the outline which governed the 

preparation of Code Histories.) 

(In the case of all approved codes and also in the case of some codes not carried to 

final approval, there are in NRA files further materials on industries. Particularly worthy 

of mention are the Volumes I, II and III which constitute the material officially sub~itted 

to the President in support of the recommendation for approval of each code. These v0lumes 

9768-1. 

-ii -

set f orth the origination of the codes, the sponsoring group, the evidence advanced to support the proposal, the report of the Division of Research and Planninv on the industry, the 

recommendations of the various Advisory Boards, certain types of official correspondence, 

the transcript of the formal hearing, and other pertinent matter. There is also much official information relating to amendments, interpretations, exemptions, and other rulings. The 

materials mentioned in this paragraph were of course not a part of the work of the Division 

of Review. ) 

THE WORK MATERIALS SERIES 

In the work of the Division of Review a considerable number of studies and compilations 

of •. ~ta (other than those noted below in the Evidence Studies Series and the Statistical 

Material Series) have been made . These are listed below, grouped according to the character of the material. (In Work Materials No. 17, Ten.i£tive Qy_tli.!lllli ~ill! Summarie.§ of 

Studies in Process, the materials are fully described). 

In1ustry Studies 

Automobile Industry, An Economic Survey of 

Bituminous Coal Industry under Free Competition and Code Regulation, Ecnomic Survey of 

Electrical Manufacturing Industry , The 

Fertilizer Industry, The 

Fishery Industry and the Fishery Codes 

Fishermen and Fishing Craft, Earnings of 

Foreign Trade under the National Industrial Recovery Act 

Part A - Competitive Position of the United States in International Trade 1927-29 through 

1934 . 

Part B - Section 3 (e) of NIRA and its administration . 

Part C - Imports and Importing under NRA Codes. 

Part D - Exports and Exporting under NRA Codes. 

Forest Products Industries, Foreign Trade Study of the 

Iron and Steel Industry, The 

Kn1tting Industries, The 

Leather and Shoe Industries, The 

Lumber and Timber Products Industry, Economic Problems of the 

Men's Clothing Industry, The 

Millinery Industry, The 

Motion Picture Industry, The 

Migration of Industry, The: The Shift of Twenty-Five Needle Trades From New York State, 

1926 to 1934 

National Labor Income by Months, 1929-35 

Paper Industry, The 

Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Transportation , January 1923, to date 

Retail Trades Study, The 

Rubber Industry Study, The 

Textile Industry in the United Kingdom, France, Germany, Italy, and Japan 

Textile Yarns and Fabrics 

Tobacco Industry, The 

Wholesale Trades Study, The 

Women's Neckwear and Scarf Industry, Financial and Labor Data on 

9768-2 

- iii -

Women's Appa rel Industry, Some Aspects of the 

Commodities , I nf o rma t i on Concerning : A Study of NRA and Related Experiences in Control 

Distribution, Manufa ctu rers' Control of : Trade Practice Provisions in Selected NRA Codes 

Distributive Relations in the Asbestos Industry 

Design Piracy : The Problem and Its Treatment Under NRA Codes 

Electrical Mfg. Industry: Price Fili ng Study 

Fertilizer Industry : Price Filing Study 

Geographical Price Relations Under Codes of Fair Competition, Control of 

Minimum Price Regulation Under Codes of Fair Competition 

Multiple Basing Point System in the Lime Industry : Operation of the 

Price Control in the Coffee Industry 

Price Filing Under NRA Codes 

Production Control in the Ice Industry 

Production Control, Case Studies in 

Resale Price Maintenance Legislation in the United States 

Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. 

Trade Practice Rules of The Federal Trade Commission {1914-1936): A classification fur 

comparision with Trade Practice Provisions of NRA Codes. 

Cap and Cloth Hat Industry, Commission Report on Wage Differentials in 

Earnings in Selected Manufacturing Industries, by States, 1933-35 

Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-35 

Fur Manufacturing, Commission Report on Wages and Hours in 

Hours and Wages in American Industry 

Labor Program Under the National Industrial Recovery Act, The 

Part A. Introduction 

Part B. Control of Hours and Reemployment 

Part C. Control of Wages 

Part D. Control of Other Conditions of Employment 

Part E. Section 7{a) of the Recovery Act 

Materials in the Field of Industrial Re l ati ons 

PRA Census of Employment, June, October, 1933 

Puerto Rico Needle~ork, Homewor ers Su rvey 

Adm i ni strative ~tudig§ 

Administrative and Legal Aspects of StaJs. Exe ptions and Exceptions, Code Amendments, Conditional Orders of Approval 

Administrative Interpretations of NRA Codes 

Administrative La·,v and Procedure under the NIRA 

Agreements Under Sections 4{a) and 7(b) of the NIRA 

Approved Codes in Industry Groups, Classification of 

Basic Code, the -- (Administrative Order X-61) 

Code Authorities and Their part in the Administration of the NIRA 

Part A. Introduction 

Part B. Nature, Composition and Organization of Code Authorities 

9768-3 . 

Part C. Activities of the Code Authorities 

Part D. Code Authority Finances 

Part E. Summary and Evaluation 

CJde Compliance Activities of the NRA 

- 1v -

Code Making Program of the NRA in the Territories, The 

Code Provisions and Related Subjects, Policy Statements Concerning 

Content of NIRA Administrative Legisl3tion 

Part A. Executive and Administrative Orders 

Part B. Labor Provisions in the Codes 

Part C. Trade Practice Provisions in the Codes 

Part D. Administrative Provisions in the Codes 

Part E. Agreements under Sections 4(a) and 7(b) 

Part F. A Type Case: The Cotton Textile Code 

Labels Under NRA, A Study of 

Model Code and Model Provisions for Codes, Development of 

National Recovery Administration, The : A Review of its Organization and Activities 

NRA Insignia 

Presictent's Reemployment Agreement, The 

President's RJemployment Agreement, Substitutions in Connection with the 

Prison Labor Problem under NRA and the Prison C~m~act, The 

Problems of Administration in the Overlapping of Code Definitions of Industries and Trades, 

Multipl~ Code Coverage, Classifying Individual Members of Industries and Trades 

Relationship of NRA to Government Contracts and Contracts Involving the Use of Government 

Funds 

Relationship of NRA with States and Municipali ties 

Shelt3red Workshops Under NRA 

Uncodified Industries: A Study of Factors Limiting the Code Making Program 

Anti-Trust Laws and Unfair Competiti~n 

Collactive Bargaining Agreements, t he Right of Individaal Employees to Enforce 

Commerce Clause, Federal Regulation of the Employer-Employee Relationship Under the 

Delegation of Power, Cert~in Pt ases of the Prin~iple of. with Reference to Federal Industrial 

Regulatory Legislation 

Enforcement, Extra-Judicial Methods of 

feJeral Regulation through the Joint Employment of the Power of Taxation and the Spending 

Power 

Government Contract Provisions as a Means of Establishing Proper Economic Standards, Legal 

Memorandum on Possibility of 

Industrial Relations in Aastralia, Regulation of 

Intrastate Activities Which s~ Affect Interstate Commerce as to Bring them Under the Commerce Clause, Cases on 

Legislative Possibilities of the State Constitutions 

Post Office and Post Road Power-- Can it be Used as a Means of Federal Industrial Regulation? 

State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis 

Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in 

Trade Practices and the Anti-Trust Laws 

Treaty Making Power of the United States 

War Power, Can it be Used as a Means of Federal Regulation of Child Labor? 

9768-4. 

- v -

THE EVIDENCE STUDIES SERIES 

The Evidence Studies were originally undertaken to gather material for pending court 

cases . After the Schechter decision the project was continued in order to assemble data for 

use in connection with the studies of the Division of Review . The data are particularly 

concerned with the nature, size and operations of the industry ; and with the relation of the 

industry tJ interstate commerce. The industries covered by the Evidence Studies account for 

more than one-half of the total number of workers under codes . The list of those studies 

follows: 

Automobile Manufacturing Industry 

Automotive Parts and Equipment Industry 

Baking Industry 

Boot and Shoe Manufacturing Industry 

Bottled Soft Drink Industry 

Builders' Supplies Industry 

Canning Industry 

Chemical Manufacturing Industry 

Cigar Manufacturing Industry 

Coat and Suit Industry 

Construction Industry 

Cotton Garment Industry 

Dress Manufacturing Industry 

Electrical Contracting Industry 

Electrical Manufacturing Industry 

Fabricated Metal Products Mfg . and Metal Finishing and Metal Coating Industry 

Fishery Industry 

Furniture Manufacturing Industry 

General Contractors Industry 

Graphic Arts Industry 

Gray Iron Foundry Industry 

Hosiery Industry 

Infant's and Children's Wear Industry 

Iron and Steel Industry 

Leather Industry 

Lumber and Timber Products Industry 

Mason Contractors Industry 

Men's Clothing Industry 

Motion Picture Industry 

Motor Vehicle Retailing Trade 

Needlework Industry of Puerto Rico 

Painting and Paperhanging Industry 

Photo Engraving Industry 

Plumbing Contracting Industry 

Retail Lumber Industry 

Re t ail Trade Industry 

Retail Tire and Battery Trade Industry 

Rubber Manufacturing Industry 

Rubber Tire Manufacturing Industry 

Shipbuilding Industry 

Silk Textile Industry 

Structural Clay Products Industry 

Throwing Industry 

Trucking Industry 

Waste Materials Industry 

Wholesale and Retail Food Industry 

Wholesale Fresh Fruit and Vegetable Industry 

Wool Textile Industry 

THE STATISTICAL MATERIALS SERIES 

This series is supplementary to the Evidence Studies Series. The reports include data 

on establishments, firms, employment, payrolls, wages, hours, production capacities, shipments, sales, consumption, stocks, prices, material costs, failures, exports and imports. 

They also include notes on the principal qualifications that should be observed in using the 

data, the technical meth~ds employed, and the applicability of the material to the study of 

the industries concerned. The following numbers appear in the series: 

9768--5. 

Asphalt Shingle and Roofing Industry 

Business Furniture 

Candy Manufacturing Industry 

Carpet and Rug Industry 

Cement Industry 

Cleaning and Dysing Trade 

Coffee Industry 

Copper and Brass Mill Products Industry 

Cotton Textile Industry 

Electrical Manufacturing Industry 

- vi -

Fertilizer Industry 

Funeral Suprly Industry 

Glass Container Industry 

Ice Manufacturin~ Industry 

Knitted Outerwear Industry 

Paint, Varnish, ana Lacquer, Mfg . Industry 

Plumbing Fixtures Industry 

Rayon and Synthetic Yarn Producing Industry 

Salt Producing Industry 

THE COVERAGE 

The original, and approved, plan of the Division of Review contemplated resources sufficient (a} to prepare some 1200 histories of codes and NRA units or agencies, (b) to consoJidate and index the NRA files containing some 40,000,000 pieces, (c) to engage in extensive field work, (d) to secure much aid from established statistical agencies of government, (e) to assemble a considerable number of experts in va rious fields, (f) to conduct 

approximately 25% more studies than are listed above, and (g) to prepare a comprehensive 

summary report. 

Because of reductions made in personnel and i n use of outside experts, limitation of 

access to field work and research agencies, and lack of jurisdiction over files, the ~rejected plan was necessarily curtailed. The most serious curtailments were the omission of 

the comprehensive summary report; the dropping of certain studies and the reduction in the 

coverage of other studies; and the abandonment of the consolidation and indexing of the 

files. Fortunately, there is reason to hope that the files may yet be carec for under other 

auspices . 

Notwithstanding these limitations, if the files are ultimately consolidated and indexed the exploration of the NRA materials will have been sufficient to make them ~ccessible 

and highly useful. They constitute the largest and richest single body of information 

concerning the problems and operations of industry ever assembled in any nation. 

9768-6. 

L. C. Marshall, 

Director, Division of Review. 





ORE ROOM 

ministration. 

no . 75 Work materials. 

no.75