Business Library 

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OFFICE OF NATIONAL RECOVERY ADMINISTRATION 

DIVISION OF REVIEW 

WORK MATERIALS 

No. 33 

THE BASIC CODE (ADMINISTRATIVE ORDER NO. X-61) 

Prepared by 

W. H. EDMONDS AND W. W. SWIFT 

February, 1936 

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FOREWORD 

This study of 11The Basic Code (Administrative 

Order No . X- 61) 11 was prepared by l:1essrs . W. H. Edmonds 

and W. W. Swift of the NRA Organization Studies Section , 

Mr . William W. ]ardsley in charge . 

The study presents a dependable and fairly complete 

picture of the formulation and results of the plan that 

was designed to complete the code naking phase of NRA 

activities. The part occupied by this study in the ent i re 

examinat icn of "JRA ad...._1ini strati ve p r ocedure may be seen 

by consultin -:; 11 ~~~ !' ~: Es:~tJ J::ials No, 17, Tentative Outlines 

L. C. larshall, 

Dj r<?.~t.o r, Division of Revien . 
MAR 2 1940 
TABLE OF ·c oNTENTS 

Pa.,ge 

INTRODUCTION.. . . • • • • • • • • . • . • • . • • • • . . . 1 

CHAPTER I 

N.R.A. AS A CODE-MAKING ORGANIZATION ............ 2 

I. THE AUTHORITY FOR CODE-MAKING IN THE ACT •..... . ...........• 2 

II. BEGINNING OF CODE MAKING N~ THE P.R. A. .................... 3 

CHAPTER I I 

FACTORS LEADilJG TO A G_HANGE OF POLICY • . . . . . • . • • • • 5 

I. COD:8 MAKING PROBLEMS • • • • • • • • • • • • • • • • • • • • • 0 •••••••••••••••• 5 

II. EARLY PROBLEMS OF ADMEHSTRATIGN .. . .. . • . . .. .. . .. .. .. .. .. • . • 6 

CHAPTER III 

THE PLAN FOR THE COMPLETI ON OF CODE 

L1AKING .......................... 9 

I. EARLY DEVELOPHE:i.\fT S IN TEE FORgULATI ON OF A PLAN • . . • . • • . . . . • 9 

II. THE PARTICTP.t1_1Jl J:.::H O~ TrtE Al'VISORY BOARDS ANTI THE 

ADVISORY CCUNC IL IN TH:S D:SYELOF.1ENT OF THE PLAN • • . . . . . • • • • 12 

III. FINAL STAGES IN FORl:iULATICN OF PLAN ........................ 1 3 

. . CHAPTER IV 

FEATURES OF PLAN FOR COliiPLETION OF 

CODE MAKING ••• , • • . . • . • • • • . • . • • • • . • • 1 6 

I. LABOR PROVISIONS ....... '. ~ ................................. . 1 6 

I I. TRADE PRACTICE PRO VISI ONS • • • • • • • . • . . . • . . • • . • • • • . • • • • • • • • • • • 16 

III. ADMINISTRATI ON TlffiOUGH GSNERAL CODE AUTHORITY •••••••..••••• 1 6 

CHAP'rER V 

OPERATI ON OF PLAN ••• , • • . • • • . . . • . . • . • • • 1 7 

I. PROCEDURE FOR H~vLING PLAN •••••••••••••••••••..•••.••••..• 17 

II. INDUSTRIES EXCEPTED FROM PLA}I •.•.••••.•.••......•••••.•..•. 1 8 

I II. DISCUSSI ON OF RESULTS OBTAINED • • • • • • • • • • • • • • • • • . . • • . . . . • • • • 1 8 

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STA'r:B,1:85HT CF SCOPE OF srrrJDy , LET~: D C;F T EAT. :E i~ , 

Al D Q,lliSTIO S mr:li:DL;G FL'RTEEP. RESE.:'U CH . • ...•. . •••........• • 20 . . . ~ . 

.dPPElm IX I • 

Am:n I SIRJ -TVI: ORDER NO . ~-61 , ;nT:i E_ SIC CO_E 

.Al~.~: ""'xm AS Exni:arT A~ '. . .........................•........• 21 

.APPE:.IDIX III. 

ADHHH STRATIVE ORDER ·~K o X-62 , SuPPLE ,fENTH;G ADULJI STRATIVE GillER '"O o X- 61 • .:Jill BASIC COJE. • ...••••••••..•..•• 26 

.APP:S-JH X I o 

.ADMINISTRATIVE ORDER NO. X- 63 , PRESCRIEilJG RULES 

-~TD REGULATivl S TO SLJPPLEMEWl' A::n,:L:ISTitATITI ORDER 

·-oo X- 61 AriD BASIC COJ..w . • •••••••.••...••.•. • ....•...•....•• 30 

APP ~IX -. 

OFF-CE }<tEl:tOR.:'J.ITrJM NO. .:-51 , _ ROVIDING PROCEDURE FOR 

1i '

1 1\.t>- I"TG C -_)LEm I Clr C-' C "'DE 1 ~JoU'iii~.L '!. ~· .. , T .. i'G 3 ... {.; !...:: \1 J1 v !.l..ti.L~-.1 • • • • • • • • • • • • • • • • . • • • • • • • • 1 

.:U'PEND I X T I • 

AD J!I'KI S~3.A- IVE OEDER NO. :~ 84 , PRO rrD L G FOR s::;LECTI 0 .. ~ ~g ME illERS OF GE!·U:RAL lffi.A CODE Al.JTIIOEITY. • ••.•.....••• 33 

APPEND IX VI I. 

AD ·r TISTRATIVE ORD.ER · c. X- 8 9 , SlTPPLK.fENT r G .A.:::>-n:r- ISTRATIVE ORDER ~0 . X- 61 ~y Cl F:RL-G A :B_ SIC CODE 

TO GROCERY I~~.A1.UF;.. -~':aE' G HDUSlRIES. • ••••.•...••••••...•.•• 34.: 

APPE~-DIX VII I . 

lviEHOR.AluH.n· OF JUNE ·o , .1934,' FROl. l~ . ADVISO:tY CC _fe lL 

1'0 TF,E ADI.IINI STRATOR. • ••••••••.....•.•.••••.••••••••...•••• 47 

APPEliDIX IX. 

REPORT OF C01iMI_TES c: COMPLETICN OF CCDE MAZil G. • ..•••..•• 49 

.APPEr DIX X. ' . . ' . . . 

. hl TEI~-cr .ATIV:E CUTLila. . ......... . ............................... ? . 

. . . . . . 

. ...... 

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SUMMARY OF CONTENTS, FINDINGS AND RECOMMENDATI ONS 

The title of this 'itudy conveys to. those unfamilin.r with NRA a c'iivi t ies 

very little informati on as 'o its true na ture . For these , i~ should be said , 

in explanation, that .Administrative Orde r No . X-61 was an orde r issuFH1. 1mder 

date of July 10 , 1934 by General Hugh s. Johnson, .Administrator for Industrial Re cov ry prescribing a p lan for the completion of code making applicable to all industri es then uncodifi ed and p r esenting in conne ction ther ewith as, Exhibit .A, a p r escribed f orm designated a s 11The :Ba sic Code ". 

The report on this study contains i n narrative form, chronol ogically 

treated , an historical r eview of the beginnings of code making, the authority 

therefor , the f a ctors which result ed in a change of po licy culminating in the 

formulation of a plan to complete the codific ation p roce ss, the stage s through 

which this pl an traveled to adoption, its operation , and the r e sults obtained. 

The Introduction and Chap ters I and II have to do with the early days of 

NRA, the authority for code s as contained in the National Industrial Recove ry 

.Act, the probl ems which a ros e from code mw{ing and administrati on , and the 

factors whi ch l ed up to the adopt i on of a p l an to wind up the codification 

process. 

Chapt e r III outlines in s ome detail , the various stages in the development and formul a ti on of the pl£~ while Chapte r IV discusse s various featur e s 

of the p l an and the basic code p r escribed in conne ction the rewith. 

Chapt e r V deals with the ope r ation of the plan, r evi ews the pr ocedure 

for handling and u tilizing it, and touches upon the r e sults Jbtaine i and 

Chapt e r VI cont a ins certain findings and conclusions which have been reaced 

as the r e sult of the study. 

Summa rizing the finding s se t f orth in the r eport on the above study, 

the findings are : 

1. The basic code was unsuccessful in accomplishing its plan for c~mpletion of code making. 

2. Its timing was ill-advised and should have been initiat ed much 

earli er in the code-writing process. 

3. .A thorough and comprehensive classification of industry for administrative purpo se s should have been made in connection with the formulation 

of the basic code . It seems desirable, from the vi ewpo int of administrative 

preparedne ss, to stress the importance of endeavoring to prepare in advance 

an accurate classification before putting such a pl an into operation. 

In addition to these finding s the following question is raised: 

In the event any new l egislation is enact ed which contemul ates the 

formul a tion of code s or some silil r documents for the r egul ation of industry, 

showed et plan for the grouping of the smaller industri e s unde r code s with 

identical provisions, such as was contemplated by .Administrative Order No .X- 61 

X-61 

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e formul'lt ed in 1 "rlj s~ .... - 3 of "-he -dn·n·s r .ion of the new l aw? The is h her a 1" l '3.11 , ..... ' ' ~l is \/Ould effccti ve 

l. ss t; s c_ .. .. . 'l.nn .... r , ser e as an complvment to he cod.ifica-tion of ·he m-=tjnr i"ld.ustric.s and r educe he number of indi ,-idual cod s to an appreciable minimum. 

963 -i 
THE BAS IC CODE (ADMINISTRATIVE ORDER NO, X-61) 

IlJTRODUCT ION 

On Ju ;~r 1 0 , 1934, Administra tive Orde r No. X-61, entitled "Plan f or 

the Com-oleti on of Code Making", WP,S issued over the signature of General 

Hugh s. Johnson, AdrninistrP.tor for Industrial Recove ry. This order is 

attached as ap--) endix II I I" • 

The s co~9 e of this p Ppe r is defined and limite d by the sta t ement of 

administrative policy conta ined. in the above order, and supp l emented by 

various othe r orders and memor pnda which will b e treat e d subsequently. 

Ess e:atial , of course, to a full underst c:mding of the p olicy itself,- is a 

kno'.-rl edge of the background against n-hi ch it c ern e in to be ing , and the extent 

to '.7hi ch it accomplished the purposes for v.rhich it ';r c:ts conceived • 

.Accorclingly, therefore, while endeavoring a~ ways to restrict this 

study to the bm .. mdnries outlined by the sub stC' nce of Administrat ive Orcler 

X-61, it r.ill be necessary, in or&e r to attain the p roper perspective, to 

indic2.te t~1e source s of authority for the ~o olicy; to review earlier methocts 

and u roceQure s employed by NRA in cod i fy ing industry; to investigate the 

factors l e0.d.ing to a change of u olicy , and. the circumstenc e s under \7hich 

this p lan nas enunciated;· to trece the various stage s in the growth and 

develop;:1ent of this p olicy p rior to promulgation, and the extent of ];)[J.rticipation in its development by the various boards and di visions of NRA; to 

survey the general NRA situation a t t he time of u romul gation; to incLic c.te 

the meru1er in \: hich the plc-m nas put i n to ouer a.tion and the extent to l!hi ch . .. 

it 0:9ernted; to exe"'"1ine the effects of the p olicy upon industry, up on the 

co d.e-making process e s of 1TR.A. , and u:o on ·the NRA organization, and to indi c 2 .. te 

the extent of its e ff e ctiven ess in accomplishing its st a ted objectives; 

to ap9ra ise and evalu1:1 .. t e the :?lan in general as a -ohase of NRA administrati ve p olicy. 

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CH.AP~ER I . 

JRA as a COD3 _4KING ORGAi.JIZATION 

I . T e Autho r ity fo r Code M~cing in the Act . 

An ex~min tio n of tho n0ur ccs in the Act from which lr-RA derived its 

authori y o codify American industry is os~s ~ned ately the broad grant of 

di scre ti on~~ry po"'7e r allo v·:d the President , in effe ctuat in~ the c;:enural policie s 

enume r ated in Se ction 1. 

VQri ous alte rnativ methods were enacted f or the ca rrying out of the se 

gene ral polici e s. A brief r evi ew of t le various methods pre scribed, and the 

eJtent to ~h ich each w~s used , is a ne ce ssary background for an understanding 

of deve lopments which l a t er l ed to the considerati on of a Basic Code . 

Se cti on 3( a ) of the Act provides for voh..ntary code s of fair compe tition, 

and p r e scribed the ba sic :9roced..1re for tho form'J.lation of code s by none or more 

trade or industrial associ a tions or gr oups, 11 and appr oval by the President . 

The President was authorized to apur ove code s only in the 'event that he found 

( 1) th::~.t the associ a ti on or group s sponsoring the code s imposed no inequitable 

r t. strict i ons on admission to membe rsl:_lip among the grou-os r epr e sent ed; ( 2) that 

tle applicants we re truly ep res ntR~ive of the ir r spective trade s or indusri e s; ( 3) that such proposed code s were not designed to promo te monopolies 

or to eliminate or oppress small enter9~ises nd would not operate to discrimina te against the l a tter; and (4) 'tha t t 11e proposed code s would , in his 

judg~ent t ond to ef:ectua te the policy of the Act. 

When the l egisl a tion was being formul ated , in JU11e , 1933, it wa s impossibl 

t o forecast ·· the _degr ee to which industry would n· s"jond by subni t t.ing voluntary 

codes, P.nd so·, p rovision was made in Suction 3(d.) to tho eff e ct th1.t if industry fail ed to t ake the initi1.tive in code making , the Pre sident might do so , 

The President · wa s theruin auth~rized , upon t is o.m motion , or upon complaint 

that abuses inimical to the 'public int er e st and contr ry to the policy of the 

Act re r.e pr evalent in eve ry t r ade or indus t~J or subdivision the r eof , for which 

a code had not a1ready been approved , to p r escribe and e:pprove a code for that 

trade or industry or subdivision , Such a code would be appr oved by thE: Pre sident only 3fter such notice and hearing as he might specify, and would h~ve 

the sPme effect as a voluntary codG approv d unde r Se cti on 3( a.) . 

Furthe r powers of imposition wo re to be found in Section 4(b) , by which 

the Pre sident was authorized to lie nse ~siness ent erprise s in or der to make 

effective a code of f a ir compotitio._ or 1 agr ee ent or othe r wise to eff ectuate 

the policy of Title I; and in Se cti on 7(c) , whe r e in the President was grant ed 

the powe r to p r escribe such limit od codes of fair compe tition eove ring hours, 

~ages , and other comditions of empl oyment as he mi ght find ne ce ssary to 

effe ctuate the policy of Title I . The se powe rs a r e mentioned mer ely for the 

purpose of completing the pictur8. They have no direct bearing upon events 

l eading to the subj e ct of tnis study. 

A new conce9t , the idea of agr eements for the eff e ctuati on of the policies 

of the Act , is in r oduced in Section 4(a) . Unde r t his provision , the President was authori zed to ent er into agr eGments with , and appr ove volU11tary 

agr eements among pe rsons engaged in a trade or indust ~ labor or.gani2ati on , 

nd r ade or industrial organization , if in hi s judgment such agreements would 

9o30 
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aid in effe ctuating the purposes of the law. It was under the authority of 

this section that the President p romul gated. the President 's Reemployment 

Agreenen t (PRA), asldng employers t_o, coope rate by a.e;ree ing with him to 

maintc.in certain conditions, particularly re arding wages and hours of ' ernploynent . 

II. The Be ,;innin,c; of Code Maki:t;l,c; and the PRA, ·. 

] 1rom a:r.10ng the various possible lines of c?c tion outlined above , the 

PresiQent selected the powe rs confe rred on him i n Sec tion 3-a, to 

ne gotiate volrmtary codes, as the basis for carrying out the purposes of I 

the Act, nne. it was upon the e xe rcise of the functions therein granted. that 

the early history of 1\J'RA was moulded. This course was made · possible by the 

wide-spread. and e~1thusias tic . a:pplica tion fo r volrm tary codes on the part of 

ind.ustry . ID1ile these :negoti ations were p roceeding, hoV.reve r, on a ba sis 

that nas ostensibly, a~d. in f act, voluntary, there remained in the background the --J one rs of the President , ctbove mentioned, t o impose codes should 

conditions require such course. 

i7i th the submission of t i1e earliest appli cations fo r voluntary co des, 

NRA 17as confronted with the i :T·1edi ate -p roblem of inter·oreting the · Act, 

f ormulating policies both of a substantive ' c;,nd admi nistrative nature , and. 

devising varying p rocesJ_ures and. organ i zation set-ups as the chang ing needs 

made necessary. This assump tion of reSTlOn sibility of inte rnretation and 

polic~'"-mal<ing by NRA was the i nevitabl e concomitant of the inde finiteness 

of the objectives sought by t~e Act. 

It he.s been noted above that the President was r equired under Section 

3(a) of the Act to make certain findings of a gene r a lly ne gative nature as 

a prerequisite to his a,p rova l of a volrmta ry code. Positive guides to 

policy, honever, we r e few. In various sections of t he .Act it was inciicated 

that codes should. include (l) p rovisions covering. minimum wage s, maximum 

hours, and "othe r conditions of employmen t"; (2) measure s to prevent 

"destruct ive wage cutting and p rice cu ttine "; (3) _ fair trade practice 

provisions, and (4) provisions p rotecting c e rtain labor rights of collective 

ba r gain ing . 

Thus, on the basis of t he sources of authcrity previously note d , and 

with the c,u ic.ance of the genera.l po licie s enume r a ted above, NRA set out, in 

effect rri t i.1. a ca rte blanche within t he limits of the Act, on its p ro gram to 

bring about industrial recovery. 

In :B1.llle tin No. 2 issued on Jrme 17 I 1933 , en t i t l ecl , "Basic Codes of 

Fair Co Jeti tion 11 , NRA outlined the n rocedure to be obse rved in the formulation and E'-lJ})roval of volunta ry codes. It wa s stated that so far as 

practical the major i ndustrie s nould. have the first attention of the 

Adrninistru.to r. Indust ry was r emi nded that: "It is not- the function of the 

National Re cove ry Administrat ion to :pr e scri1D:e what shall be in the cod.es to 

be subnitted by a ssociations or gr oups. The i n itiative in all such matters 

is ex-pe cted to come from within the industry itself.ll 

And so the work of codification was begun, and every effort was made 

to edit e the process, and have at l east the maj or industries cove r ed by 

codes rri t h i n a few weeks. In s:;J ite of every endeavor, however, and altho 

industry was responsive and made many applications for codes, the p ro t;Tess 

9630 
of n e··o t :c..t i on s ··r'"' s is our .: in "' l-· slo·r, ThtJ PJ ro·,al of Co'e .To . l "or t !1e 

Cotto:1 ·I' ::tile InL. str y, rmi re d a full 110nth : or c:~otiation ; ["n c~ out of 

the :.l:1".:.'E" ·s · c nd. i ng , o. l v e i gh t r a t=- n ~-w1 roved Fi t the end of the second 

mon t h . It · ·: s f ear ed t 11c t ' Ull (. ss a s·)e cc i Pr 'e c? :'LS eoul d be found for co . .~. :.Hr_ 

i :l['" o.· t.:.c ·,::o~ ~'TI . ::- r ee; ction mi ·ht set in to o:fs "' t the sti ulus "'h ich l1''d 

pe r , 1 .• tee" t::e i ndu strial structure d r in.a- the early su.'1mer • 

... t ~ i ~ t .:.me Jul r 20 , 1933, t :1e PrE" siC:.e nt 1 s ::.teem-,lovrnent A cCI. ~.;i'l t 

(P:::-C ) "'S : :ce ive ' I c> nu t i1e ~Tea e.: t 1ence -time c a ~) qign in the to:i.' r of 

the ;o· ::;:.·!: :e .. t ·a s launched, a·-1 Jeal ing to t he e 1 o tions, the lJa trio tis 1 cncl 

the u::··-. nLicc s of emDl ove rs I e wl oye <' S , anC:. consUJ11ers alil::e, to orL .. : st:ccess 

to t~:c· :·c t d ive to r .:>c" .. uc e me .. l; ~,:'e ntl i ncreas e ···a-e s, and "' .. e c". 

uurc. f i.' o•-,e r . I t "US a si·1 l e: 'll on, co.cceived in ne cec:sity, _f01.'.nt.c c;_ on 

the ;u :..s :;::.'£'.::1 t e d the ?resiC2T1 t in Se ction 4(a) to enter i nt; nd. c.}T)ro e 

vohDtc. ~- o. :.·eerients, ancl. cc-'::::·ieC' o"".J.t ··ith a drivino; ene r"'v . 

="J:- 1.1 ti~ zin ~ the faciliti e s of the Uni tee Stat2 s ?ost Office sy&te ., 

p r .:-!.cti c.:-._. 1,- c>.lJ. e m:; loye::-s in t l1e coun.tr y '''e re con 1c ad ·· i thin three or four 

da . <.:.'lc'. ove r 2,300 ,000 emuloye r s si · ned a s rec1ents '"ith the Presic"e:'lt, 0;i 

-~ hic:l t~1e . vi."'' :ing conditions of SO H!e 14-1/2 million em·ol o,.rees V'e r e teinOTO..:i."ily 

cont:.·ol J.eC' .• Unlik e the code s of fai r compe tition, no 11encltio:. s 'rfe~e c tt::--.ched 

to vio}_ ... tio 1s of the se a c;re e Ji1ents. Public o inion , .. <' S eX'Jected to be the 

1Je rs ~l..O. s i v c force fo r co ·1:11 i ance , c:.nd the Blue =:::a_:-:le ·1 a s invented as the 

SY"lbOl o·- . ·:1ich coo·oerc.ting ern •Jloye r s s hould be knO'."'n . 

In ~· .1e s e ctions the Blue :6agl e nas more effective than in others , ·u 1.t 

e ·e r-- :1e :ce its in luence •-: as felt . Public o .,..~ ion was stron;ly behind t e 

Presi u:. nt, and fe··· we r e the en lo:rers \/ho did no disnlay the :!Hue Eagle . 

I n t~-: is --2], -rith :public o·nnion forcing i :1oustr;,r i nto the P::lA , i t · ·c;s to 

t e i:.,_ t e :c··e st of c!i lo··ers to secure se'Dar ate co des by coOl)erative ef£'o:i.·t 

anct. t::us c~:- e F.dv2.nta.ge of t he t·cad.e p r a ctice Hnd price ~rotection .ro is i ons oe in · of ..:·ere d by -TRA. 

t~s, · ·i t:.-1 the rr.ajo ri ~· of industr alre1.d con; 1i tted to the hour :-nd 

.a ;e revisions 01 the PF.A , n i th such "10d.L icati ons c>nd subst itut ion s as 

were a:p1)rove d, l\RA was no·; read.y to ro ceed u i th the ···or\.: of codification, 

and e ·.re:;.·:· ::"ccili t:; of t _e or_::a n i zation was henceforth dir ected. to that 

purp o se . :;':::om t i .1e to time nerr subs tan ti ve policies r:rere fo r oulated end 

annot --lc er". , or- tl:e basis of c1.mulative experience; and rules and r egulations, 

adrr1L1ist:.·.:-.ti e devices C'nd p roceciures we r e established with a vie to securi ng nne". ~i taining an orderly and exne" itious nrocess of code formul~t·on . 

These · ·e :i.'e esc ri bed either by e.-ecutive orde r of the President or b;r ci.ire ct 

action of L1e Admi n istrator. NRA was at all th.1es a living or ganization, 

g r on i nc:; , c.e Telop ing, changing , to r~ t the ever increasing deiaand.s of the 

'"' Or : · ich it had 1.mdert c? '-en • 

"ti th 

ways 

'fTi th 

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.!. 1e stor r of the first ~rear of code .,a~·inf' under 

ich the organization ·· ".s conf ronted, and Bhich 

to :eet , is the story of the factors leading to 

·h ich t h is -Japer is conce rned. 

·rnA, and the ·n~o ble~1s 

it tried in v~rious 

he administrative J olicy 
CHAPTER II. 

F.ACTOF.S LEADI!JG TO A CH..\NGE OF POLICY. 

The growing be lief among NRA ' officia ls in the desirability of a change 

of code- Llak.Lng policy, reslll ting finally in the issuance of Adrnini strati ve 

Order X-61, was a cmn~uative i mpression lasting over seve r al ·months. The 

considerations ~pon which tLis conviction was based fall generally into two 

cla.sses, - code-mn.killg :Droblems, and early problems of administration. It 

would perhap s be '.ue ll to treat these subjects sepe.r a tely, insofar as they 

·may be segreg~ted~ 

I. Code-Making Problems. 

On June 21, 1934, General J ohnson, looking ·oack on one year of codemaking a ctivity , on the part of :.IRA , S3.id, in part: lf 

11 C!1ce launched , there was no halting 

the ~ode-rnpking process. It had to be 

carried through so that every industry 

in the country and its workers might 

c.s quickly a s possible have an even 

bre<.c'tk of the recove ry :_o rograrn 1 s benefit. 1t 

Thus did Gene ral Johnson describe the situation which had a!isen with 

respect to code-making during a year of NRA. From the beginning, NRA had 

been confronted with an avn.lanche of codes of all sizes and all degrees of 

importance . Du.rir..g the fall rnd winter of 1933, codes had been expedited 

to approval with rela tive speed. Negotiations were carried on untiringly 

by an enthusiastic ptaff, without thought of time or energ:y expended. 

Policies, during that period, were in an ea rly stage of development. and 

the pro_gress of codes was not dire cted to any great extent by precedent or 

by policy determi nations, except for the general policies outlined in the 

Act . 

The trade practice provisions which found their way into codes represented, except for such ~e nerally accep t ed prohibitions as commercial bribery, 

defamation of competitors, etc ., tne final outcome of negotiations between 

the l'ffi.A and the representatives of the industry concerned. Likewise , t.he 

l abor :_r,> rovisions, a s they ap:pea.red in the codes, were u sually the r esult of 

long , and sometimes bitter argu~ent and contr oversy. Provisions were submitted , and were ap~roved , coverino almost the entire field of indust rial 

operations. Volunta ry agree:i1ents of such broad scope , dependent first upon 

agre ement bet ~ee n competitive groups within the industry itse lf, and secondly upon agreement bebveen rep resent c..ti ves of the i ndust~J , t:-:o gc-.cro} .. :.1U-L1 lic , 

ancl. ·cho lBJ1 .. > TI'Qre no essa:i.~i l r nl"!'ivc d at onJ .. ~r cfte:r C'.. J.ong series of co ~fC::'­

cr:ce" ~ r .. 8<.1.J:·i :·~bs . i: i.VC· s tic·:. ti 0j1 S ' L. l' t1. n~u.t.'i •" e '-? rOc ;,; o:u.re . 

As the months p0ssed , and the great majority of industry and labor were 

brought under code s, it had been expected, or at least hoped , that there 

!_/ NRA Re l ease No . 5889. 

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- 6-

would be " ma rked r eduction in the '"~mount of ti .e and enerr,y spend in formulnting new codes. T1e earlier a' )rOvE?d codes ht'\d been in effect and 

oper tion for sometime , and the f~ciliti~s of the staff ere needed for the 

•-orl:: of ad.mini stration. 

·rhe hoped- for r e l !>.xation in the pressure fron inC: str ial groups for the 

formul a ion of new codes, or surmlemental code s, did not seem to occur. It 

is true tha t during the s:Jring of J.931 , the volume of codes decreased , but 

the v. ork of formulating en.ch individual code , n.s becoming more involved and 

more difficult , and the codes were , reposed by smaller and smaller segments 

of industry. Ye t , in formul atinb codes fo r even the smallest groups, the 

same controve rsies and a·guments arose as to permissabl e provisions, tho 

same pr c dure a s to hearings, conferences, et cetera., had to be followed , 

and due considera ti on hAd to be given to the opinions of the several Advisory 

Boards and Divisions of liRA, r epr esenting eve r y conflicting inter~st in the 

economic picture. Frequently months were spent in trying to write even a 

very small code in a manne r accept ·'.ble to all parties in interest. 

The intensely hu.'llan· ·A-nd sdmetimes dramatic job of codifying American 

industry wns inevitably drawing to a cl ose . The long hearings and conferences lasting far into the night were becoming fewe r ; the bickering, 

compr omising, and bar gaining of the code- Mak ing period w::~. s occupying a 

smaller part in the staff's a ctivities, but negotiations' ere becoming longer 

dr awn out , and differences l ess speedily resol ved. The fire and the urge 

of the early months were dying out , and t he Recove ry Administration Tias becoming mo r e deliberate in its actions, mo re caref'.li of its commitments. 

NR.A 'Vas now r eady to enter upon a more prosaic , but pe r hape mo re important , phase of its a ctivity , ~ t hat of adniniste ring nd enforcing the codes 

it 1ad approved , and observing the ef fe cts nnd results of its earlier work. 

For the first tine in history , ind stry was operating under rule s of ethics 

- codes of fair compe tition; it wac l~ s new job to administer and aid in 

securing comp li eJlce with these rules, and , i n some case s, on the basis of 

expe rience , to clange them. 

Not only , t hen , wP..s J.ffi.A fReed ni th the law of diminishing returns as 

r egards continued a ctivity in the realm of code- making, but lso there was 

develo ing a ver.y r eal ne ed for the organization to direct its a ttention to 

the subject of' code administrntion" The p roblem of devising a suitable ·plan 

for bringing the wo rk of code formulation to an end , was occupying the minds 

of the highest off icials of lmA. The de lo~)EJent of such a pl an will be 

traced in Section III. of this study. 

II . Early Probl ems of Administration 

Early expe ri ence in the administr<'.tion of approved codes indicated a 

numbe r of ways in which a ll 1us not ~ell -ith the policies p reviously pursued 

in code- making. To a s gr eat an ext ent as possible , it was sought to correct 

in tle ne!V policy the mistakes and shortcomings Tihi ch adl'!linistrative 

experience had pointed out in t he old. 

An u.~expected development , with attenda~ t "illlexpected p r obl ems , had 

been pr esented by the hundred s of codes pre sented to .~. iRA for approval , -

9630 
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codes of all sizes And degr ees of importance , codes with overlapping definitions, codes intended to cove r only a small portion of a larger industry, 

vertical coies cutting through the distribution functi ons, codes submitted 

by riva l n.~soci1.tions to cover the snme ind·..1stri a l · gr oup , et cetera. At the 

out set , it h.1.d been the ') lan to codify the l n.r ger, ba sic indus tries. But 

the code idea had become ~ f eve r, in which the earlier, sounde r conception of 

NRA bade fair to be lost from view; and NRA was not prepar ed ·for t he wo rk 

that was thus thr ust upon the or ganization. 

Coincident with the "LJlforsee n de luge 0f smaller codes ,• came the gigantic 

and equ~lly unforseen 9r ob lem of unforse n 9roblem of industrial classification. Of prima ry importance v.1.s the necessi ty f or insuring unifor mi ty or 

simila ri ty cf code pr ovisions, both l abor and trade p r ac tice; for closely 

related or dire ctly compe ting di vi s.ions of i ndustries or trade s. The inherent difficulty of classifying American industry for administrative purp ose s, 

trucen toge ther with t he nearly total unpreparedness of NRA for atta cking t he 

probl em , presented one of t he most troublesome obstacles in the path of 

smooth-functioning code administra tion. 

It wa s n2.tural t ho.t the gains se cur ed by :::tn industry through its code 

might well be obscured, or even l ost sight of, in the light of t he k nowledge that the gove rn~ent had appr oved a mo re f a voraole ric e p r otection 

pr0vi sion, or perhaps a l e ss oner ous l o.b or ·orovi sion , for a compe ting , or 

closely r e l a ted indust ry. Keeping in mind the f R-ets tha t codes were be ing 

approved fo r such soall subdivisions of industry ~.s "Fly Swatte r Manufacturing, n 11Lightning Rod Manufacturing , 11 <.mel the n-.7et :tviop ," "Dry Mop , '' and "Mop 

Stick" Industries Qnd that tl":.e negotiations we ~e being ca rri ed on at 

different st·tge s in the develo ~:nne nt of NRA _t)Olicy, a nd by different pe rsonalities (sometioe s va r. i~L widely in their op inions as to at constituted 11 f air compet i ti on 11 ), it w!"' s . ine:vi t?.ble that some industri es would be mo r e 

favorably treated than others, nd thn.t conse quent dissatisfactions wo uld 

ensue. 

Becoming more and~ rr.o r e bothersome , too , 1~ as the pr oblem of overlapping 

definitions. This situation w~s due in pa rt · to the efforts of applicant 

groups to secure broad definiti ons, as a means of covering fully a given 

competitive area, and to provide a bread basis fo r assessing the costs of 

code administration; in part to the necessarily ha sty- procedure and the 

general unpreparedness of NRA in t he matte r of industria l cla ssifications. 

On tle other' and , que sti ons we Fe frequently a rising concerning the 

code coveage of a rticles not clearly covered by any definition. tiany 

p roducts might reasonabl y be said to have been included under more than one 

code finiti , be ~g_on the borde r line o: each , and usually certain to 

produce di ssa.ti sf acti on on one side whichever we.y it might have been 

dete r mined. 

More thouqlesooe , ho eve r, and mo r e ciifficult to r emedy than multipl e 

coverage or non-coverage of particula r a rticl es, was the mult i pl e application of codes to single enterpris.es in sor1e cases, and other instances whe re 

a rea s of compet ition ne re not incl uded '~ri thln the definition of a single _industr y cr trade. 

A great many cases a rose in which the ope r a tions of a single firm we r e 

9630 
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u j t -:o ~ ·e r :l. cod s. So:n ~ i•:1cs 1. fire .m.s .. r~~e. ~Pi i th a very r eal 

robl e~ in ~tt~m~ ti. f, to :so t~ its or r~~ions on the b~sis of the aiffo....r-

- .: codo.J d0fi1 it.:.on· ..tn r · .ic1 i ... s 1::.·oJ _c s ! C: buc ... classified. Even 

,.,.i r e :JLg ~.; -~tion of ·ork ·,a:-; ::>h~s 1cally -os iblc , 1t ""\S freau.ently 'l the 

cost o: t_ffi c11. ·1c:· "1 d ,)f~l n ,.nn_ , s<:' .; ily C:.J.c: r u..:_J .. .J.ve of tho3 fi rm ' s accus omo....' ~ r d 1)f 0p r · t ion . 

o;.J· corl s , :. r .J1 tn~ b r o"d ccv._ r ::c of ~J ~i r r'lo....fi·i~io ns , r ... 1.chud into 

uno.....;:po....cto.... d Jl OCt · , o~h~..rs ···o.....t. so n rrow in ~heir cov~r1.;;e that 

ciir ct1_y cum!:h..:til ..~. ic ~1s ni :h cu ll oc~t~..;d unC: ... r dif f(; r Lnt c odes. 

]' ~t G~vu h._ fo re ~ of r o....· 1 ity to tl~s~ 0u cstions of cl ssifica ion "S 

th0 t.. ~. r incr Lasi nt; numbo.... r o: s 1-".l l coc.cs , cnch ?ith i s o~m l ·· bor "'nd tra'lc 

p r ::tc ic~ provi si uns. m• .e '.70 d., vclo-pn~nt s ·.vcrv inse.:.par :1.b l e . '/i th a gcm:::r~l 

ifor~ity o si! il·1ri t y in ho n r ovisions of codes for he larrcr divisions 

of ind'.. stry , th .... r c ~ould h~v0 ue~..n less occasion to disuu.te th0 code covurage 

on a p r icul" r p r oduc • 

3 , s the cod~.. s ~n cY "Sed in nu;Jbcr , thuy nlso incrcas~d in he intricP'c~r ami comolcxity of h-.i r ) TO isi ons. 

_ '1utht.-r f"c or of code c:~dMin st ation ~l:i cl .- s ':)cginning to cL:dn he 

spa li ~:h of ? tl:1tion IPtS the asst:'ss:'!cnt a."1cl collccti n of t::>""T)e ns c s incuy-·. 

• ~r t.!::G cos c auti.1 riti~:;G in adninis (.; r ing codLs. ]}lA he.d procce ed v ry 

slo·:l;:,r i n &r m:.i::1g cod.f' a ·th ri :.ics t ... e ,::>Or-~ r o insti tu e the l egal proc - ·-

ings for ~r.o coll8ct i') _ "': i\..no.s for the ~ucn L s of code adMinis ra~ion , .,_nd 

L 1en th'-' n i r;as c )'Y.r<-n ~ _ :1. tl1v :iiffi c · 1 ti .... s in fi:::1.~!lc ing thG adrninis r ation 

of small co~~s 1~ (.; n ot solved. The small e roup s cesir ~ to maintain he ir 

autho ri y , and orc r '1. te unlcr .:nl ir own code ; o~~t tl G t.-X_.9enses of ad:!lini s c. ring t:1~i r O'm coC't- ··L ~.... f r .. ~~:ln:.l more :.hnn tl e traffi could or would bt.1.r. 

is c ·i6.c. t ! P.t -here ... ~.s net:.d f or a ne w policy 

de min~:.io:::1. , ~i r .... t.~ :.o~1.rd tto follo1in~ objcctiv s : 

l • . To bring o P.n l nd IK oc ri od of ~odc .1.king , Hnd to 

f r ee tl:~.; or g2.ni zation for tLe wor.-: of r.tdnini strP_tion 

and COI! Oli'PlC8 e 

I o o~ch this goal Tiith th~..; c r cn ion of ns sm1.ll a 

num r of n .... P codo....s ~s ~cssib . 

To "' r ive for unifor"t.:.ty or si;·.il·.ri y of )r O ·isions 

i:::1. coclcs f0r la:~d, or on,'eti'~r:; ind t tri~.s . 

4 . 'Io o....ff ~ consrlid..e ions r·.i.. th ?.p.::r ov 

possiblE: . 

co:lc- s , 7here 

5. ro r (.,li<.VC ST.Iall in.:~ur,tr· ~,... s frOM :he •~ o S 0Yp- nSo.... S 

of co~L ~~v ti ,n and ~dMinis ~ ti on. 

ID"Y ~w ocG~d to a s:.·dy of tl 

hopo....1 to ~ccu~:·s! tnG bove obj_ctivcs, 

i'or~.· lntion of a p l<:tn by which it w~s 

, 1.d he various staec s and d ~ r 

by ·m ~.en -._· o p · - 'l lo_p~.,1 . 

~ .... O.J 
-9-

CHAPTER III 

TH.E PLAJ:I FOR THE COHPLETION 0], CODE-MAKING 

I. Ear.:hL_Dcvelopments in the Formulation of a Plan 

Tl~e earliest documentary evidence found of the beginnings of a plan for a 

5 eneral, or blanket code is contained in a recommendation by Charles F. Ruff, 

an Assistant Deputy ·Ad.Jrlinistrator, early in February of 1934, that a 11 readyto-wear11 code be drD.wn up for sT!lall inciustries not already codified. Y It nas 

suggested that such a code might be called the "President's Code for Uiscellaneous Inciustries." 

To substantiate the need for such a plan, l1Ir. Ruff l:>o inted to the large 

amount of time being spent by NRA in formulating and approving codes for small 

industries, and mentioned that a number of small groups, uhile desirous of a 

code, were unable to afford trips to Washington to secure a "tailor made job.n 

The detailed recommendations were that a general code be prepared by NRA 

and offered to small industries for acceptance or rejection as they sau fit. 

Labor p rovisions would be established in the code, with the provision that exceptions might be granted, with the approval of the Labor Advisory Board, for 

industries similar or closely related to others operating under more liberal 

labor p rovisions. 

It Tias Jr. Ruff 1 s idea that t~e eeneral code itself would be so fixed and 

standardized that the main work of NRA would be in examining the industries• 

propose~ definitions for conflicts with other co~es, and in establishing true 

representation . All that vrould remain then Tiould be 11 to publish notice of the 

definition ru1d ask for protests by mail, The code having been approved by the 

Boards and Divisions would not be reviewed by them." 

Mr. Hickling replied that £.1r . Ruff • s suggestions might prove useful in 

later d~ve lopments, but tlat in his op1n1on it ·uould not be practicable to 

recommend the adoption of a blanket code at that time. 

T1ere is no evidence that there uas any direct connection between the idea 

put forTiard by Mr. Ruff, and the plan tnat was finally promulgated as Administrative Order ~61. That there way have been some connection is indicated by 

the fact that the correspondence is to ba found in the file of Blackwell Smith, 

Assistant Administrator for Policy, on the Basic Code . 

The matter doubtless was the subject of considerable discussion and evidently culminpted in the Assistant A~~inistrator for Policy suggesting to the 

Director of Research and Planning Division, in a memorandum of date May 14, 

1934, that they mru~e a joint recommendation for a Presidential Agreement to 

cover small industries and that the Research and Planning Division suggest the 

number of employees at vrhich to dra11 the line . It was specifically stated 

that groups l ogically integrated with large r industries nould be excluded from 

such a recommendation . gj 

"JJ Undated memorandum to Deputy Administ'rator C. 1 . Hicklinc; in Assistant Administrator for Policy, Blackwell Smith's file on Basic Code, in NRA files. 

gj I,Iemorandum from Assistant Administrator for Policy to the Director of Research and Planning Division, May 14, 1934- Blaclmell Smith's file on Basic 

Code , in NRA fil~~ · 

9630 
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urt:1er e.·chanP.es of vierrnoint curing the next fe days culmin.::tted in 

a memorandum from the Administrator to Colonel G. A. Lynch, Administrative 

fficer, u.1der d'lte of .Iay 21, 197 4 . This meoorandum 1./ 

1/ This .JeMorandum is located in the file of the Assistant Administrator 

~or Policy, on the Basic Code, in RA files, and is here quoted in full : 

'', e have got to clean this show of Code rnaking and there is 

too rJ.uch con~:;id ration and furnbli '1E; in doing it. I want immediate 

action along the follor ing lin~;.; : 

11 1 . Let ' s ge t up a ' basic Code> ' con t " ining only the follo ing: 

a . 4n hour week and child labor. 

b . $12 to $13 pe r TICek miniMum wa~ . 

c . Provision as to exceptions, etc . 'Jhich conform 

\7i th approved policy. 

d.. ro sale or se rvi ce below cost . 

c . Leon Hende rson and Bob ·.1on t ._,omery ' s nrov1 s1ons 

as to pri ce cutting and cost finding. 

f . Statutory mandator y provisi ons. 

g. Provision for Code Authority and Government 

ri ~1t of r epresentation in accordance with 

approved policy . This could and should be 

done within 48 hours. 

11 2. rl1en we will draft collll!lunication to ever y Industry employing 

less than 5l 00 peopl e with Codes no yet approved and say: 

"'In the interest of ex-oedition the President ould 

li ~e to have you assent to the foregoing basic Code 

rrithout further delay . 

"'If thereafter you desire additional fair trade 

p rov1s1ons you rna s 1l>mi t them and if supported 

by 75~ of establishments in your I ndustry and 

approved by the Adninistrator they will automaticall y become part of your Code . 

" ' We will put the bE~ sic Code through without reference to anybody bu~ the Administrator.' 

... . 

' 3. rhe same proposal should ~p r.1ade to all the big Codes still 

h · c up such as Snip1Jing, Communication, Anthracite , Public Utilities, 

e tc . ith the added r emark that ' in the event this is not a~reeeble 

to you the President will impose Codes covering ~nly wa es and hours 

and child l abo r in any case in ~ich he finds the labor conditions in 

your Industry belo~ the pr evailing industrial r ate s.' 

11 4 . On this formula I expect to compl ete or abandon all Code making 

~cep t hangovers of administration by June 15. This organization 

· Gt b8inune l t E.lyre set for Code administration . The fact that all 

Co de utl orities are not or ganized and functioning is an indictment 

of this Administration. ' 

Signed - HUGH s. JOHFSO , AD I .ISTRA':'OR 
-11-

was the actual beginning of the campaign to formulate a plan t o end code 

making, and laid down gene ral lines along which official thinking uas to be 

directed. 

This memorandum did not bring action within 48 hours, as General 

Johnson had sugce sted. It did, howe ver, serve to define the issues and 

concentrate att ention on the points which had been r aised. Bla ckwe ll 

Smith , in a memorandum of May 22, 1934, addressed .to the Administrative 

Officer, the ?.eview Officer, and the Director of the Re search and Planning 

Division, and in another memorandum of May 23, 1934, addressed t o General 

Johnson, outlined a number of important points to be clarified and settled 

prior to the application of the policy prescribed by the Administrator. 

Some of the issues raised by Mr. Smith were: · l/ 

1. \TI1ether the effort should be made to bring all industries 

having nending codes under the proposed Basic Code, with a 

resultant peak load of administration and compliance work ·· 

f orthui th, or whether the same thing should .be done as to 

terms, but on a voluntary basis only, that is, enforceable 

by the i3lue Eagle . 

2. The difficulties which wo uld be encountered in drawing up 

r e~cact definitions. 

3. Uhether or not there should ' be public hearings. 

4 . Whether prov1s1on should be made for maintenance of wages 

above t he minimum. 

5. Sho uld the r e be a Code Authority set up for each of the 

ne\7 Codes or should there be a voluntary Committee of the 

Inclustry without administrative facilities? 

6. Should the step ap:ply to supplemen tary Codes ? 

7 . He also questioned v:rhe t he r it was fully recognized that 

the later inse rt.ion of trade pr a ctice urovisions would ;nean 

practically the same amount of Code ing as to have trade 

j?rac tices in the first instance me r e ly delaying the incidence of the burden . 

B. Should the basic Code include the standard, well-recognized 

rules against various types of chea~ing, for example, the co~~ 

mercial bribery rule? 

1./ Both menoranda are to be found in Blackwell Smith's file on the 

Ba sic Co d.e, in NRA. Files. 

9630 
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Eiforts r;ere now 1mder :lay in the industry divisions o speed up the 

fo ulction of codes on '1111icl: \70rk hai h en s arted. On :ay 24 1 1934, 

ivision Administrator A. R. Glancy reuo r ed thnt his division was attemnting to r eC.uce the number of snall 11endinv coles cniefl ~r by "'1e rsuading their 

? rO'Jonents to accGlJt a code alrec:d,v a .•ro r,- for a closely related industr y . 1) 

In the 'Jueantimel George s. Erf'.ciy , D~ il1.t' '" sist':3nt Administrator fo r 

Cl e.szi:fi co. tio·1 Policy , ha·l been 11orkin, on t~ e rone r ou:pings and classificatio l of industry fo r adJ.linistrative Tlur,')oses 1 and on June 4, 1934, the 

Assist .;mt cl:.1inis rater fo r Policy recommended to the Ad..rninistrator that the 

p r ooulGn.tion of the basic code idea be held in abeyance for a few da~rs, 

pendin6 n. re!)Ort from .. r . Br [tdy. It was po inted out in this memorandum · 

hat t he r e were only 1()2 penc.in0 codes befor e the Administration and that, 

in r . Brad t s ~) inion, all of tho se logically fell unde r an approved code 

for so:.1e other L dus r y , or in a fe n cases, under a pendi ng important code . ~ 

n the same day I General Johnson rJodified h is orig inal p l an to the extent a~ m~-ing it anplicable to a ll uncodified industries, r a t he r than small 

ones only , and also i ntro duced for the first time the i dea of creati~u a · 

sinvle code authority fo r a ll s 1:1all codes, the e ense s to be borne b :RA, 

but rri th lee- Hay for any industry which so desired to e r e ct and bear the expenses of its O\?n code Autho rity. 

1i1e l)lan was now com~ng very much into the foreground of official thought 

and consiQe r ation and was rapidly taking definite form. The ge ne ral obje ctions aud Dethods e r e no\J sufficiently crystallized t o pe r mit of the plan 

being referred to the various Adv isory Boards and Divisions for their recom.-. 

mendations, p rior to p romulgation. 

II. T'1e Participation of the Advisory Boards and the 

/,.C.visory Cou.'1cil in t he Development of the Plan. 

On June 5 1934, the I ndustri al , Consumers and Labo r Advisor Boards 

we r e consulted fo r the first time on the que stion of a Basic Co de . On that 

date l;·r. Snith addressed a memorandum to eac h of ttese Boards r equesting 

their reaction , at the earliest possible moment to the following documents , 

whic1 he attached: 

- (l) ~~Jinist ative Or de r setting forth the ulan , ith 

Basic Code attached. 

(2) Suynlementary Administrative Or de rs. 

(3) Su··Jr.l er1entar y Rules and Regulations. Y 

1} .e:orandum f r om A. R. Glancy to Black?ell Smith - Blackwell S. ith1 s 

file on Basic Code I in rnA Files. 

~ See A )~J endix I I - Exhibit A, pa.;e 4 • 

Y See A•y.Jendix II - Jciministrative Order with Basic Code attached -

Exhibit A. 

9630 

Sup:plenentary Administrative r de r - A:pnendix III. 

Sup~lecienta y Rules and Regulations - ~uend ix IV. 
-13-

On June 6, 1934, a meeting of the Labor Advisory Board was held for the 

p ose of considering the documents submitted by Mr . Smith. At this meet ... 

ing the foJlo~in resolution was passed: 

"The Labor Advisory Board recommends as a sn"bstitute for 

the labor :provisions of the Basic Code, the a1jplication of the 

labor ~ovisions already in effect in kindred codes, the Administrator to determine the grouping or consolidetion. 11 

In tro.ns:.1i tting the above r esolution to the Assistant Administrator fo r 

PolicJ- in a memorandum of the same date, Dr. Gustav Peck, Chief of Staff of 

the Labor Advisory Board., said. in part : 

"The Board felt rather strongly that it would be unwise 

to mal:e public at this time, one year after the National Industrial Recovery Act went into effe·ct, a Basic Code which 

might appear to be and would be easily interpreted as a 

standard code. While we sympathize with the ambition of 

s;·,1aller industries to adopt codes of their own, we are of 

the opinion that the number and variety of codes already 

ap}Jroved, leaves ample room for the prope r and fair grouping of all r emaining industries e The approximately 500 

codes Tihich will be in effec t when this Order is issued 

have been the result of fair negotiations by industry, 

labor and the NRA, and com~arative justice will be done if 

the remaining smaller industries are requested to accept 

the terms under which kindred industries are operative .u 1./ 

At the same time, Dr. Peck attc:1ched to his memorandum a point by point 

criticism of the Basic Code as submitted, in the event it should still be 

deemed desirable to pursue this course. 

On the next day, June 7, 1934, Dr . Peck sent a supplementary memorandum 

to Mr. Suith recommending the insertion of a provision to the effect that in 

no case snould hourly earnings be red~ced and that there should be no reduction i n \lee-<:ly earnings to offset any reduction in hours up to 2o1o . 11 It is 

perfectly evident," he stated that r.1any of the industries to be inclucled 

under this catch- all code would be paying far higher rates than those contemplated for the Basic Code, anQ, of course, the ffiA does not want to 

sponsor or seem to approve a Code which would :pe rmit wage reductions. 11 

The Basic Code, moving rapidly no.w tp the final stage s of formulation, 

was refer~ed to the Advisory Council for consideration and recommendation. 

III. 

The Advisory Council acted promptly in its consideration of the matter 

and approved the proposal in a memo randum to the Administrator under date 

of June 9, 1 934 (See Appendix VIII), subject to certain specific recommendations which are summarized as follows: 

Y Menorandum from Gustav Peck to Blacbve ll Smith, June 6, 1934 -

Blacl~ell Smith1 s file on Basic Code, in .NRA Files. 

9630 
-14-

1 . That tne or o.uosed :!Jla shall no a:nply ( ) o cer ain 

cle"i_;..1~ted industries nho"e codes \'e r e r.ec:.t.ring coMple iorl· and 

("u) t::> a fe\7 a.jc r in "LA.S ries then unco dified uho e importo.nce 

"eei :e- to have arran ed the p r ennr a t ion of i .'1 .i ricl.ual codes, 

t'1e inclustries r efe rred to in both instances (a) :r"d (b) o be 

c" e·si 11o.ted by the Admini tra tor; 

2 . Th3.t inr~us rics c.. s --et uncodified C'nd not covered 

~;- t .. e :p r eceding .r1.ra ··-ra"'Jl s (a) and ( ) be encoura.cred to 

C0~1Sult Tiith rindred industries, tl..ereb p lacint: them under 

tl1e cO.l) l C e _.'lr ovisi ons of an 13xisting a:oproved code, he 

c'.ete r.1· :1ation of t e p rope r kindred industr~ to be rna 'e y 

t:1e dn ini s tro tor; 

3 . Tl at all other uncodiried i ndustries not dealt n ith 

in t~e tuo ur eceding papa~ro.~rn be ur ged to adont the basic 

code, the :provis1ons of '7hich (a) to carr r no flat de claration of ho urs and ;-~ages but that Drovisions dealing with 

Sl:c ... ;natters for anu industry a,rl L ing for the basic code 

be t ose in effect for kindred industries nd (b) that he 

eco~nized standard la" or p rovisions of existing codes be 

included in the asic code; 

4 . That there be clarification and emnhasis to avoid 

n ossible f a lse impressions on the following~p oints : (a ) 

tl·at tile move contenplated pure ly voluntary action from 

i · dustries, Tiith the possible excep tion of importa nt exce:q tional industrie s, if any, which faile d to apply and 

Je r e found to have had sub-standard working conditions; 

(b) that the p r opo sal was not a move to force rema ining 

indu~tries under codes; (c) that the Se r ice Code move was 

entirely separate and remained unchanged; 1} and (d) that 

the ur ose of tle plan ~as to p rovide a simpl e means of 

g i v i nc a code forthHith to those uncodified industries 

ich cle sired a code . 

T 1e c.~TJ roval of the p lan by the Advisory Uou.Ylcil i th its modified 

r econne:1do.tion, outlined above, apparently n ro o!ced r ene\7e d discussion 

before ~e Afu1in istrator, as no de finite pronouncement \7aci forthcomi ng 

until one :-1onth late r c:md on July 10 , 1 934 , when the Adrlinistrator 

announced t~1e p lan and made it effe cti e throUbh he issuance of Administ re.tive Order -o . X- 61 with the for of tl- basic code attached as 

Exhibit II thereto . 

An eJa~inat ion of the pl an as .mbodied in Administra ive rde r Z-61 

and ~:e tuo orders i ssued by the drninistrator sinul aneously here;Jith , 

Admi r..istrative Or de rs X- 62 and X- 63 (See An~'end ices II III, and r 

r es""1ectively) , reveals t hat the Adninistrator to a co nsiderable e;~t ent 

follo rFcd the above- stated modificativns recommended ·by the Advisory Council 

but strengt ened t11e p rop osal .~ announcing that, while the lan uas not 

1/ r: is r efe rs o administrative action at this particular ime on 

service codes. 

9630 
'; 

-15-

int~nctec "to f orce all emaPnri~ uncodified industries under codesll, the 

Administrotor should determine as to any uncodified. inC..ustry not a:rYol yinG 

for the b-3-_,i c code or for con solidation with a pro"?er kindred ind.ustry nithin thirty ac;ws, if the wage s, hours and ln.bor conditions in such industries 

constituted all abuse i n i mical to the nublic interest and contrary to th 

polic~r or tLe Act, the furlinistrato r within forty d.ays afte r the announce .... 

ment of the ·? lan would p rovide for a hearing in accordance with Section 3 

(d) ox ;~ !1. . to determine whet~e r a code covering hours of labor, r ates 

of p~y and otler ':'TOrking conditions should not be ·pre scribe d . . . 

It is non in order to r eview in detail the p lan. 

' .. 

. . 

9630 
-15-

CHAPTER IV . 

FEJ TURES F FLAN i•'CR COl I'LETIOl" OF C DE-h . .AKING 

I . 1 OR PROVISIO S 

-~ an in ti n of Ar icl e II and III of h e apn roved form of t P b a s ic 

code n aLe a u ar of Adminis ra ive "rd.e r X-61 as Exhibit 11 A11 cons ide· e d 

alon<::> .. i t h ciminis r o. i ve Order X-63 s!J.o:.rs tha ··ri h r e s ect o hes c 

f e·' "".ll'es the ini s ra or folio •<~ d h e recommend/=\ ion~ of he Advisory 

Council in tha t no fl a de cla.ra ion of hours and wage s 11as made , hese 

ma t tel·s -,e ing left op en in orde r th'1. the hours And ~Tc>ges of kindred in<iusri e s ht bo apr li ed and tha t the r e cognized standa rd labor provisi ons 

be ~t y d cl . 

This arr angement s eLms o have ruso taken c~re of h~ sugge stions of 

he Lr-bor Advisory Board, h e reinb fore mPntionod, as having been voiced by 

i s Chi e f of S aff under dat~ f June 6 and June ~ 1934. 

II. TRADE PRACTICE PROVISIONS 

.An e~ inati n of Article T of the form and Administrr-tiv rder X-62 

r ev e als t h :-> t the ·.;rico uolicies of NR.A. as announc~d in Office Memor~dum 

No . 228 ·· e r •3 rigidly adhered to and that the standa rd rrovis ions , common to 

most codes , outlining h powe rs and du iE>s of th . CJd~ au h ri ty r·ere 

allo-rre d the notr-ble exception tha th . plan for administration is entirely 

diffe r ent from that embr e.ced in urevious approved codes . 

I II . AD ~UHSTR I'ION TH3GUGH G-ENERAL CCDE AUTHCRITY 

Inste ad of a cudo autho ri y net uu and established by hP industry its elf, co c es apurove d unde r Adminis r ;- tiv Crde r No . X- 61 nere o be a G.r'l inistered by a Gen ral NRA code authority at the PXD ense of NRA 7ith the memb ers 

the r eof to b app oin ed by the Adrninis rator. It is not e d, however , that a:ny 

in<ius ry ;p·0 lyin~ for a code unde r the plan and dosiring do so (.Ar lclo 

If, ~s ic CodP), on ap~roval of th~ Administr tor , was allowad to elect its 

own code au hority which would have the spme powe rs and duties rescribPd for 

he .~e ral 1TIU. code au hori ty and such further rul e s and regulations as 

the Administr tor might prescribe . 

dminis r 8.ti VP rde r ·a. X- 34, Appendix 11 I II her e to , pr vided for hP 

s el e c tion of th . members of he 5Pne ral RA code authority . It cras to consist of on ~ membPr arpoin ed by h e Adminis rater ~o s erve as chairman and 

hree o h e r mombers c:J.so a:t::poin od by thP Administr-- or, one of whom \7as t0 

be appoint e d with h advice of h Industrial Advisory Btard , one r;rith the 

advice of th Lahor Advisory Board and ons nith th advice of the Consume rs 

Advisory Board. ThPse four mb~rs n a re emu owered and directed to act UDOn 

all matters conside red by his gen.-ral c df" authority ; he said Order, however, 

rescribeu thn on addi ional ~mbcr should bP a pcin ed by thE' AdministraLor, 

r1i th the app roval of the Industri al Advisory Board , for each industry whose 

c de> r s o b ad.r1inis e r d by such code au hori y , these addit i onal members 

t a c t only upon rna ers ~hich ertain d to the rPspective codes for their 

part i cul ar industries. 

963~ 
-17-

CFJlPTER V. 

OPZ::tATI Ol OF PLA. 

.c~ r-; ··ith t he is ~·w nc e of Adr.lin istra tive Or-:.e rs Fos. X-61, X-62 e.no. 

X-60 . c}.""'1 co · .e OL~ ice Ord.er 100 a nd Office l. e r<1orandum l o. 251, the f or1:e r 

?uuo .:.11 tint:_: a co ,..~:a i t t e e of thre e !leJ11be rs to supervise the e xecution of t he 

plan r.:.1 c t !1.e latt :.~ n r e scri oin.=; -proc(;d.ure for handling it. The Office Order 

de si .. )1C.. tee-;. i ;r . Robert K. Straus as cnairrnan of the cornmi t tee on su:_)e rvi sian 

with ~esc rs . Le on C. hiarshall and Oeor e;e S. :Brao.y co ·J"?leting the meu oe rsh i }·'l. 

The ~oc e(.ure established by Of:i ice Memor a nciUJTl No . 251 was as follo \·s: 

11 1 . The Co;rr i ttee ~ill i nn e d i ately o.i stri bute to each 

Division liaison office r a set of documents, incluciing a copy of the Basic Code and related 

Admin is trat i ve Orders, for each code •.-,hich awaits 

approval by each Division. 

2 . Uith in a ;ee ~ of the receipt of these docu.rnents, 

they will be sent out to each uncoded industry with 

a covering letter ritten by the Deputy or Assistant 

Deputy Aciministrator who has been handling any 

negotiation with said uncoded industry, recommending 

that s<l.id inc .. ustry ' s code be disposed of in accordance 

Tiith the p rinciples laid do~n in Administrative Order 

X- 61 . 

3 . As soon a s these letters have bee~ sent out, progress 

reports shall be :1ade to the Com . .1i ttee on the Completion of Code K~:ing by the Divisions, i~dicating to 

what industries the l e tters have bee:.1 sent, and what 

the recor.ll!1enciations of the :Uivision ~1. E've been with 

regard to these i ndustries. 

4 . Divisions will co11tinue to submit weekly reports 

on Saturdays to the Committee on the Completion of 

Code Making as to the progress which has been made 

during the days cove r ed by these r epor ts. 

5 . The Committee on the Com1Jletion of Code Mak i ng may 

r ecom:·-1end. to the Administrator any changes in this 

p r ocedure t:hich it ma r deem advisable in order to 

complete code ·m'ci:L_g in the thirty- day period allot ted. 

At the end of this thirty-d y period, the Committee 

·rill make a definitive report, includ ing any recommendations as to fur ther action . n (See Au11endix 11 D11 . ) 

The Comu i ttee on Completion of Code l,iaking, as dir ected in _the above -

mentioned office order cmd the said Office l eraorandum rJo . 251, under date 

of Auf:,ust 6, 1934, submitted a rep ort as to the ·orogress made which goes 

into co siderable statistical detail from Phich the forecast was made t hat 

119 coc_es -,ould be disposed of by ugust 10, 1 934, 73 of which were indi vicual codes, 31 represented consolidations under AdrJinistrative Orcler 

9630 
-12-

X-61 ['.n -- 1) covered esic cocle. · "der Ad . . i is r iv Order X-61 . A copy 

o.: t:.i., lC_Jo::-t is ... . 'l'le:~ed he_c>to "'S ;. -.,e.1 ix ur_ 11 . 

I I . L0US~1U~S : .. CEPT .. J :•::oi p- · ; 

It •:ill be recn.llec that service raG.es ''ere excented snecific~lJ r 

fron t c:.' • :·ovisions of Aci'1inistr tive rder X-61 as :vell ns such other i·'ltl'i"'c:o 2..s t : e .1:1.d inistrator for s1 e~ific cause mi"ht desi2'nate for 

if ::.:e.:t tl~eatme~t . rn the re )ortl above referred 0 1 from he Co !ittue 

on Co :1letion of Code ·.:aking it ···ill e no el t!1at Division VI ha on _ a~~c1 

23 se~7ica codes in addition to the 17 shown to be in v~rious sta~es of 

develol) :e~1t. i 1 t l1is U.i vision. It a mP ars that, e side from these service 

radv s t :e only exception r~nted from the p rovisions of Administr~ i e 

rder :~o . ,._ 61 :r.are the Groce ry !.:anufac turin.g Industries 11hich 11ere o;fered 

a br.sic code of their orm under the terms of Administrative Order ~~o • .4-39, 

date d Se~1te:~be r 21, 1904 1 a copy of which is attached i ereto as AopenG..ix 

II IIII . 

I I I. :J:::SC"JSS IO OF ::u;sUL:rS OBJ:AI JE:D 

:Lt s>.ould be r ecalled :r.e e tr.a t the el)ort fro the Chairman of t 1e 

CoH :i ttee on Com1Jletion of Code ~:aking u rc d icted t:lE.t 119 codes \70uld '"e 

disnosGcl. of b'• Au:Just lC, 1934- 1 31 of ,.hich ·,,e r e esti..1ated \"Ould be cor.-

solic.c. tions 'LLYl<ie r Admini strati ve Order o . X- 61 ['.nd L.: of 1hich would · e 

a ·Jl)ro -c ls o~ oasic codes thereunder. ?urtr.err·orc I the estimate as mad.e 

t' at e. bC'lcC'.nco of 97 codes would. be l eft on August 10 I 1934. 

I t 2..}) ~oe ars that the c:1airman of this Conmi ttee in his 1)redictio!l.S ',7aS 

too sc::~-;.:;uL e and that t .e results uredicted we re not achieved, as onl r 3 

consoli cl2tions were made in a ll and only 5 basic codes Je re eve r a"'l}lroved 

unde:c Ac'j-:L'listre.tive Or der X- 61 . Indeed, except in the single case of t e 

~ire 2e~~for ement Industry, a consolidation atte r appr oved AuJUst 13 , 1934 1 

all of tl:ese consolidations and C':pprovals took place consid.era ly later than 

August lC , 1S34. 

ian~r facto rs com ined to cause such a noo r result . One as t: e fc:-ct" 

1at e. consid.erable nu.rnber of officials of ~~RA did no look unon t~1e :9la:'l 

with favor . This causecl it, 'llhen adopted, to be not only unpopular uith 

the inc":u.stries con cerned but also with many nersons in the Administration. 

The movement the r efore suffered from lack of comp lete coope r ation. 

]Ul~t ~le J,l ore, the -plan .as laun.ched at a time Tihen a g reat many sub.~itted 

codes .1-:o.c-:.. _w.ssed throug e xtenC.eG. "'e rioc.s of negotiations dth the result 

tha.t t· G L clustries sponsoring them I referred to follow them thro .,.h to 

appro al rather than accept any consolidation or the basic code . In orcJ.er 

o secu::e a· 1roval of codes in this category instances a rose of industries 

sacrificing and , i thcJ.rauing provisions hich had p reviously been relieC:. o: 

and insistecl upon as being fund.a~n entC'l c:>nd essential to the 1elfare of those 

inductries. This attitude nas evid ~n tly based, in nartl upon the fear that 

-. R. A. 1ould carry out its announced intention of i1J Osing , in certain 

circTh stances , p rovision s relating to hours of l abor, .age s and conQitions 

of en~loyne~t ~ and also in part because some • R. A. officials i n charge 

of t:i1c se su':-.1 itted individual codes, ob -iously reluctant to relinouish 

supe r- ision of them , a te:n'IJ ted to pe rsuade industries to secure aplJl'ovals 

of t~.e ir _J ::..~evious ly submit ted codes r athe r thc.m accept the plan offered b .. :-

9630 
-19-

AdmL1istra tive Orde r X- 61 . 

An.oth.jr unfavo:::able cir curnstance ·~ras the fact that the proposed basic 

code did not })rovide for trade practice p rovisions which 1,1ere specially 

adap t ed to the various industries. I n otl-1er nerds, this type of comDl c.int 

was to t he E- .1.fect th.:1t the p roposed basic co de \Jas too standardized to take 

cnre of the trade l)roblerns pec~liar to the various i ndustries. While . 

so ~ht to 1e e t t h is objection with· a ssurances that amendments contain ing 

trade p re.ctice p rovisions. peculiarl y anplicable to individual industrie s 

coul c~ oe hac. l o.ter on, it is obvious that these industries were rre ll D.\7o..re 

of ~1e clifriculties which attended the pa:th to a-ou rovals not only of a r:encments bu t of codes. 

A further objection rra s me.de that t he theory of industrial se lf-government rras reJ? laced by the i dea of havine; the basic code administered b~r a 

generc;.l l1T . B. A. cod.e autl1ori ty or, in cases of con sol ida tion, with an 

adrninistl.·o.tion cond.ucted by r epresentatives of ano t her industry. To stc.te 

the objection difier ently, autonomy vrould be lost either by accept i ng 

consoliC:.ation under Adillinistrative Order X- 61 or by securing a basic code 

thereunder. 

In addi t ion to the diffi ci.ence sho•.1n by industry, t he failure of the 

plan for the comple tion of co de- 1.1aking ca::1 in some measure be traced. to 

the l acl: of comp r ehensive, accuro.. te and t ho rough classification of indus try 

for ad:·.1inistrative p urp oses. It seer.1s d.e sirabl e , from the vieWDoint of 

administrative p reparedness, to stress the desirability and need for the 

p reparation of such a classification i n advance of ])Utti ng such a program 

as the }.)J.an for comp letion of co de- making into ope ration. Had this been 

done no doubt some of the difficulties which beset the p lan would have been 

avoided. 

Further1110re, the plan was adop ted and put into operation too late in 

the co de- E1a!dng p roce ss to accomplish the end expected of it. Expe rience 

sh0\7S that the p rogr am V!ould have achieved greate r success had it been 

formulated nuch earlie r and used a s a complement to the codification of the 

major industries. It se ems rathe r safe to say that had this policy been 

adop t ed the numbe r of individua l codes would have been rna terially re d.uced, 

the . C:.iffi cul ties of adrninistra tion lessened, and the p rospe cts of s ecuring 

compliance greatly increased. 

From all of ~hich it rather conclusively appears that the p l an failed 

to realize its objectives; that the results obtained r1ere ne glig ible ; that 

it \7.:1-S unfcworabl y r e ceived_ by inccustry and conse quentl y not utilized extensivel~r; e.nd that the Administra tion, when confronted with the failure 

of the ~~ c:m, neve r put into ope r ation its announced intention of imposing 

p rovisions r elating to nage s, hours and conditions of enployment, unc.er 

Se ction 3 (d) of t he Act, in those industries found to be ope r ating under 

sub-standard conditions. 

9630 
APPEIDIX I 

StatemBnt of Scone of Stu~y , ie thod of Treatmen and Questions 

Neudin,s; Furth~.::r Rvso:1.rch 

This study \r'"' s trcmt'-'d very l ar guly from a histori cal uoint of vi ew and 

is p r t,; se·1tcd in nP.rrativc. fo rm. Tho condit1ons \7hich cul ninP.ted in the 

adoption of a pl.m to wind u:p tho codification 9rocess hl.ve been r eviewed nd 

the stages y which the ulan r eached fruition have been traced in detail and 

in chronological or der . Finally, some !" ttempt was made to appraise tho r e sult 

ob ained , point out the ilure of the ro ram , analyze the r easons for tho 

failur e , ~nd p r esent certain f indings and r ecommenda tions. 

The s bjcct ··as developed in t 1e following manner: 

First , a t entative outline which is made a :r;>art of this r eport as 

Appendix X was ca r efully repar d b0fore anything else was att emp ted. 

Then , some wee~s we r e spent in se~rc~ing o t so rc os of information, 

finding the material r equired to fill out the outline , and assembling this 

ne ce ssa ry data, e:p~.ratory to tho ·.:ri ting of this r eport. 

Thu next st ep consisted in conf erring with the various officials of NRA 

who participated i n the formulation ~f tho ? l an and had charge of its applica1 

tion pnd in inve stiga ting conditions in !nla which gave rise to the ne ed for a 

new code- naking poli cy . 

'ibon the abovo detail s had been CO!'lpl otod , the a ctual prep~ration of a 

r eport to round out t O outline cornJ"K.ncod , with the r e sult that pr eliminary 

r eport was •rri tten and subssgu -ntly r evised and put into thi s final fo rm. 

This r eport l eave s little for further study . It is r egarded by its 

authors as ·being r easonably coropl e t c . It nay, h0\7ove r , at sor.1e future time 

bC; inter esting as we ll as instructive to a scer tain if the industri es, uncodified at the time of the adop tion of the plan fo r coMpl etion of code-making, in addition o r easons given f or failing to utilize the plan , did not 

f eel that they were bei~1g asked to ado_)t the hours and pay the wages r equired of kindred industrie s without being compGnsnted ith trade pr actice pr ovisi ons de signed to b nofit and p romot e their own welf:1.re . 

It seems that the only source from 11hich to obtt::dn r elirtble information 

on this sug6c sted que stion is tho uncodifi0d industries of July 10 , 1934 , and 

thuir r espe ctive t r ade c.~. ssociations , if any. 

A comparison of the t entative outline , Appendix X hereto , with tho t ext 

of tnis r eport will r eveal a f ew o hc. r features which have only briefly been 

all uded o , if a t all , such as tho details of the organization of the Gene r a l 

NRA Code Authority and the departure from the p lan a s instanced in the matte r 

of the Grocery anuf acturing Industri e s. The se fields may the refor e in the 

future be explored with pr ofit , but for the purposes of this particular study 

it ·has no seemed advisable to treat them any further . 

9630 
-21-

.APPENDIX II. 

ADMINISTRATIVE ORDER NO. X-61. 

PLAN FOR COMPLETION OF CODE MAKING 

By virtue of authority vested in me as Administrator for Industrial Recovery under ':::i tle I of the National Industrial Recovery Act, and in order to 

provide a simple means of giving a code forthwith to those industries remaining uncodified who desire a code and in order thereby to free NRA for administration of approved codes, it is hereby ordered that: 

l. This plan is available to any industry not yet codified under said 

Act (with the exception of industries, including local service trades, for 

specific cause designated by the Administrator for different treatment). Any 

such industry may appl;r to the Administrator for codification by application 

of the Basic Code (Exhibit 11 1!,11, annexed) as the code for such industry. The 

hour and wage provisions to be included in said Basic Code, as to any applicant industry, shall be those already approved for the proper l::indred industry, as determined by the AQ~inistrator, after due consideration of representations of the applicant indust~r and other relevant data. An uncodified industry, instead of applying for the Basic Code, may apply for consolidation and complete coverage by the existing code for the proper kindred 

industry, subject to staJ as to applicant industry of provisions t hen inconsistent with policy. 

2. If any such application is made by a truly representative body of the 

industry and if there be no objection to any party in material interest after 

ten (10) days publisheQ notice to all concerned, such Code shall, without 

further hearing, r eference to Advisory Boards or other administrative action, 

become effective ten (10) days after its approval by the Administrator, in 

industri es employing less than fifty thousand (50 , 000) persons , or by the 

Preside~t in all other industries. 

3. All uncodified industries which desire codification (excepting those 

specially designated as above) c>,re req_uested so to apply for such Basic Code 

or for consolidation with codes for kindred industries. If, after the approval 

of such application for any industry , it desires additional fair trade practice p rovisions or modifications as to such indust~J of the Basic Code, or the 

code Tiith which consolidated, such industry may apply therefor at any time and 

will be accorded a prompt hearing and dete1~ination with respect thereto. Any 

industry vrhich desires to consolidate under tl'le code of a kindred industry may 

do so on approval of the Administrator even after becoming subject to the 

Basic Code. 

4 . It is not intended by this Flan to force all r emalnlng uncodified. 

industries under codes, but as to any such industry not yet codified nhich 

does not apply for such Tiasic Code, or fo r consolidation as above, within 

thirty (30) days after the date hereof and in which the Administrator shall 

determine that wages, hours, an& conditions of labor constitute an abuse 

inimical to the public inte~est and contrary to the policy of said Act, the 

Administrator will within forty (40) days after the date hereof p rovi de for 

a hearing in accor&ance Tiith Section 3 (d) of said Act to determine nhether 

9630 
-· ' h "-

., coG..e covering hours of l1.bor , r att-s of oay , and o her or king conditions 

1 ~11 no c pr e ·cribed her~ mdcr. 

-lashington , D. C. 

July 10 , 1934. 

9630 

:ruGH S. JOHNSON 

dm inistr ~ or fo r Industrial R covery. 
. -23-

· APPENDIX I I, 

E.'illil3IT 11A" 

:BASIC CODE -----

July 10 , 1934. 

-oOoARTICLE I 

To effectuat e the policies of Title I of the ·Na tional Industrial Re1COVery Act, the following provisions are established as a basic Code of Fair 

Competition which shall govern· every industry applyihg ·therefor in accordance 

with Administrative Order lJo . X- 61 , dat ed July 10 , 1934 • 

.ARTICLE II 

Section l . Hours. 

No employee shnll be permitted to work in exce ss of 

one , .. eek, exce:pt that for weeks in ru1y one calGndar 

may be permitted to work not more than hour s per week. 

excess of· pG r day or er PGGk shall be paid fo r 

one and one- half (1-~) times the emp loyee 1 s regul ar rate . 

Se ction 2. Exceutions. 

hours in any 

year, any enployee 

All hours in 

at not l ess than 

The provisions of Se ction l shall not apply to employees engaged in 

emer gency maint0nance or eme rgency r epair work involvi ng breakdown of the 

prot e ction of life or lJrope r ty ' no r to persons emp l oyed in a manage r ial or 

executive capacity who earn r egularly Thirty- five Doll ars ( $35. 00) pe r we ek 

or nore , no r to any othe r ss of emp l oye e s which the Administrator shall 

find pQ n ap·)l ication of true repre s entative s of the trade or i ndustry should 

be subjected to an exemp ti on or modifica tion in accordance ~ith N.ReA. poliGY ; 

provided , however, that employee s engaged in such emergency maintenance an~ 

emergency repair work shall be paid at one and one-hal f (1-~) •times the ir 

normal rate fo r all hours wor ked in e~ -c ss of forty ( 40) hours pe r week . 

Section 3. Minimum Wages. 

"No empl oyee shall be pai d in any pay pe r iod l ess than at the rate of 

___ ..,J.;pe r ,,.ve·ek for hours of labor, except i n in which r egion no 

employee shall be paid. in any pay period l e ss than at the rat e of ---- pe r week fo r hours of l abor. 

Section 4. Wage s in Gene ral. 

All wages shall be ·adjusted so as to maintain a diffe r ential at l east 

as groat in amount a s tha t existing on June 16 , 1933 , be twe en wages for such 

employment and tho then minima. In no ~ .. se shall the r e ·be any r educti on in 

hourly rat es; nor in weekly earnings for .:my r eduction in hours of l ess than '- thirty pe r cent. 

9630 
- 24-

ARTICLE I II. 

Se ction 1. Ch ild Lnbor. 

o .)orson unde r si.-teen ytJc:trs of c:tge sh:.Ul be c.. nrpl oyed in t he industry 

.in any capr ci ty. :r o _pe r s on unde r oi cht con ~'o.'"l. rs ')f age shall be em.,loyed at 

oper a tions or occupati ons whi ch qr c h'"l. z r d.ous in nr-tt u r e or dange rous to health. 

Tho Code Authority shall submit to t lu in is r f or approval before Octobe: 

1 , 1934 , a list of such ope r a t ions or occupations. In any State n.n employer 

shall be deemed to hav com.Jli ed ;vi t h t his ·0r ovisi on a s to rtge if he shall 

have on file a valid certifica t e or )Cr l'li t dulJ signed by the authority in 

such Sta t e empowe r 0d to issue employrJC' nt or ago ce rtificatc.s or permits, showing t hat the employee is of the r e qu ired age . 

Se cti on 2. Apprentice s. 

Tl-e hours and wage s of r egula rly ind.E: ntured appr entices in skilled 

trade s or occupa tions of the industry may depart f r om the standards he r einabove pre s c ribed; rovid d that the t e r ms of employment and the course of 

instruction of such apprentice s shall conform to standards uniform thr oughout the trade or industry and approved by tho .Administrator. 

Section 3. Handicap'Ocd sons~ 

A pe rson whose earning capacity is limited buca se of age , physical or 

mental handicap , or othe r infirmity, may be empl oyed on light ~ork at a wage 

be low the minimum e stablished by this Code, if the emp loye r obtains from tle 

State author ity de signa t ed by the United State s Depa rtnent of Labor , a certificate authorizing SUC.l.l pa rson 1 s employment at SUCh wages and f or SUCh hours 

as shall be stated in the ce r tificR.t o. Such authority ·shall be guided by the 

instructions of tho Unit ed Sta t e: s ~..po.. nt of Lr-.bor in issuing certifica tes 

to such persons. Ea ch errpl oye r shall file oonthly Tiith the Code Authority a 

list of all sue} pe rsons emp loyed by him, showing the wage s paid to , and the 

maximum hours of wor k f or such em-yloyee . 

Section 4. Safety and Health. 

Eve ry enploye r shall make r eas onable prov1s1on for the safety and health 

of his employees a t the place and d.uring the hours of. their emp loymcnt. 

Standards for safe ty and health sha.ll be submitt ed by t he Code Authority to 

he Adr inistrC~. to r f or a}:nroval itl in six Months t c r he eff ective dtl.te of 

this Code . The standar ds appr oved shall ther eaft e r b e a par t of this Code 

and enforceable a s such. 

Se ction 5. Re quired Labor Cl a~se . 

The provisions of Se ction 7 ( o ) of sa id Act .:·.r e he r eby incorporated heroin by t his r ef e r ence and shall be compli ed wi th. 

963 
- 25-

.B..RTICLE IV. 

Administr a tion. 

Tni s Code stall oc A.d.mini ster cd by the Gene r " l :m.A Code Authority which 

sha ll be se l e cted p rsuant t o , have the pom.;rs ~e cifi d in and functi on in 

a c cordance with d~ ini st tive Orde r J- 32 , d~ d J ul y 10 , 1934 ; pr ovided, 

howeve r, that, on aporova.l by t he Adi.linistra tor, rmy i ndustry so de siring may 

el e ct i t s own Code Authority to ha ve ~owe rs and t o functi on in t~e manner 

prescri bed for t he Gene r a l ill.A Code Au t hority n.nd under su ch rulos and r egulations as tho Administrntor ~ay pr e scribe . 

ARTICLE V. - - ----

Trade Pra ctice s. 

(a) It shall be a n unf c::.ir me thod of compe tition for any membe r of any 

trade or industry subj e ct he r e t o t o viola t e any rule of fair trade p ractice 

for such tra~e or indu stry even if not he r e in contained when app roved by the 

Administrator , or, in the case of trade pra ctice p rovisions for trade s or 

industries under the jurisdi ction of the Se cre tary of Ae riculture when 

approved by · such Se cre t a r y , on pu lic ti n concurred in by seventy-five (75) 

pe r c.ent of the Ti1Cmba rs of such trade or ind.ustryo 

(b) Price s, r eba t es, sco ~t s, c onmissions and conditions of 3ale 

shall be fil ed as p r es cr ibGd in dministr tive Order No . X- 62, dated July 10 , 

1934 , and it shall be an unfair thod of competition to viola te or fail to 

comply with the t orms of t hat Order. 

ARTICLE VI. 

Se ction 10 (b) of sa id Ac t is he · incorpora t ed he r e in by r ef erence 

and t his Code is ssly maie subj Gct the reto& 

9630 
_..., -

_ PE ruix III. 

SUPPLE: ::::::~~TI~-G .t:..!Jt I L.-E-t;_T·I "E O:ru:ER :10 . X-Cl DA1::D .T-iL..:· 10, 1934, .1'8 T::: 

:BASIC CODE .'G~ ::XED 'I~iEJETO . 

*** ** "'"' * 

B-- ·i:i·tue of the authori t ves ed in rue as Ad"linistrator for Ir:2 ... t~:i '"'.1 

Reco-- ::.·:- unc:.er Title I of the ·7atior-.al Industrial Recovery Act and to su -

ple.:P~.t Ac".:::.nist.rc:., ive Order :~o . X-Cl, elated July 10 , 1934, ?.nd the B~sic 

Code c.n:lc:·ec-;. the:::-eto , it is hereb...r 0rdered that: 

A. C-tne:cc>l .. RA Co~e Aut "lo ri ty 

1 . The C-e eral ::B.A. Code rut: orit. , pro iCied for in Article r;: of 

said Basic Code, s!w.ll ·oe ao,...,oin ed b, the Ad!linistr1.tor anC. 

shall serve uithout e~ense to the Industries subject to such 

Code . 

2 . Such Code AutJ. ori ty shall have the following po~e rs aYld ctuties: 

(a) To insure the execution of the nrovisions of the 

Code anc. to orovide for the com"l')l iance of the trac.e/ 

industrJ- ··•ith the Dro,·isions of the ct. 

(b) To ~.d.o~t by-la:vs and rul es and regulations for its 

p rocedure . 

(c) To obtain fron members of the t r ade/industr y such 

information and renorts as are required fo r the 

acinini stra tior, of the Code . In addition to infornation required to 'e submitted to the Code 

.; .. u :.ori ty, rae,. bers of the trac'.e/ indus try subject 

to said :Basic Code shall furnish such statistical 

inforna ion D. he Ad.'Tlinist ~ or 11a~' deer::~ necessary 

for the purnoses recited in s. ctio· 2(a) of the ct 

to such Fe~er&l and State a cncies ~s he ay designate ; ~1rovidecl that nothing in the Code shall relie re 

any r1e:- ber of t':e trade/incustrv of an., eJdstin(; 

obligations to :urnish reT)orts to any Gove r nJ•lent 

agency. :1o inQl vid1.w.l re·1ort shall be disclosed 

to ar..y other r eo"uer of the trade/ indus t r y or an~ 

o her party exce)t to such other Government agencies 

as ·1ay be directed b the Ad1a1inistrator. 

(d) The General 1~ Code Authority shall submit to t~e 

Ad.mini s tra or · i thin 90 da rs after the a-ourovc-.1 of 

this Basic Co'e a list of industries covered by t~e 

Basic Code, L'l r.: Licl.1 ork on any ryart of the ~ ro c'..uct 

is 'Je r formed in the l:ome and/or or~ is contracted 

out. The General rnA Code Authority may also subrai t 

a list of s~ecial p roblems affecting uar ticular 

industries 01Je r a ing u.n.der the Basic Code, and 

recommendations pe r taining the r eto . 
9631) 

--27-

(e) To muke recomMondutions to the Administrator for the coordination of the administr ation of the Code and such 

other codes. if c:~ny , as may be r el ated to or effect members of the tr£'-d.e/industry. 

(f) To reconmend to tl e Administra tor any action or meusure 

de emed ndvisable , including. further fair trade p r actice 

urovisions to govern members of the trade/ i ndustry in 

their relations ui tl~ each other or with other trudes/ 

industries; ~easures for industrial planning, and stabili zation.of emplo~ne nt . 

B. Open Price Filing. 

As provided for in Section (b) of Article V of said Basic Co de , 

prices, rebutes, discounts, commissions, and condjtions of sale 

sh~ll be fi l ed in accordance ~ith the follouing p rovisions: 

1. Each me:.1ber o: t he trade/ industry shall file with a confidential 

and disinterested agent of the code authority or, if none, then 

with such an agent deslGilated by the Administrator, identified 

lists of all of his p rices , discounts, r ebates, allowances, and 

ull other terns or conditions of sa le , hereinafter in this a.rticle refer red to a s llp rice terms 11 , which lists shall compl etely 

and nccurat ely conform to and rep r esent the individual pricing 

practices of sc>.i cl mambo r. Such lists shall contain the ~J rice 

t er ns for a ll such standard p roducts of the industry as are 

2. 

sold or offe r ed for sale by said member and for such non- stande.rd products of said Menber as shall be designated by the code 

autilori;ty . · S'1.id p ric e terns shall in the first instance be 

filed within 30 day s after the date of approval of this provlSlOn. Price terr's and r evis ed price t erMs shall b ecome effective immediately upon rece ipt .ther eof by said agent . Imr:lediately uuon r eceipt thereof , said a~ent shall be telegra h or other 

eq_ually p romp t means notify said membe r of the ti!Tie of such recoiut . Such lists end r evisions, together with the effective 

time thereof, sh£:.11 upon rec e i p t be immedi a tely and simul taneously distributed to all nembers of t he indust~J and to all of 

their customers -v1ho have ap :> lied therefor and have offered to 

defray t he cost a ct·uall y incurred by the code authority in the 

preparation and -distr ibution thereof and be available for i nsp ection by any of their customers at the office of such agent . 

Said lists or revisions or any part t her eof shall not be made 

available to any person 1J.Iltil releas ed to all members of the 

ind1.'.stry and their custo::1ers, as aforesai d ; -provide!i, that 

p rice s filed in the first i nstance shall not be rel eased until 

the expira tion of the aforesaid 30 day · p.eriod after the ap roval of this code . The code au thority shall maintain a pernanent 

file of all. p r i ce terms i'iled as herein provided, and shall not 

destroy ar-y· part oi ~~ch records except upon written cons ent of 

the Adoini strator. U~oh r equest the code authority shall fLU~n

ish to the administrator or any ·duly designated agent of the 

AQ~inistrator copies of any such lists or r evisions of u rice 

terms. 

When any member of the trade/industry has filed any rev1~ on 

such member shall not file a higher urice within f9rty-eight 

(48) hours. ~ 
9630 

,. 

4 . 

-'::>8- . 

Fo menber of e tra·'e/in' str.r s all sell or offer o sell any 

p rod ct , services of 1 e r"'/ ef ind s r-r, for ·-::rl ic JJ. ice ter-Js 

have been fil_e· uursu.r'nt to t e Ul'Ovisions of this article , e=:- ceu in accordance with such 1ric~ t~rms . 

Ho member of th(.; industry shall enter into any agreement , uncl.erstanding , combination or conspiracy to fi:· or naintain u rice 

e ms , nor ca.use or at terrmt to ca. :tse an:• member of tl e inclustr 

o change his orice terns by the use of in imida ion , coercion , 

or any ot ... er influence inconsis ent •.ritn t. e main en.?nce of the 

free and open ~rke t ~;hich it is the purpose of this Article to 

create . 

c. Costs and Price Cuttin'. 

1 . The standards of fair competition for the trade/industrv \!i th 

re fe rence to ·:>ricing -o r ac tices c:re declared to be as follo·•s: 

(a) Wilfully destructive price cutting is an unfair methoC:. of 

comoetition ru1d is forbidden . An member of he trade/il 

dustry or of any ot ... Ler trade/industr~r or the customers of 

either mc:y at any time com-olain to the Code Authority that 

any filed ~rice constttutes unfair competition es destructive -orice cutting , i muerilins small enter-orise or tending 

onard nonoooly O! the im_?airmen t o ~ code 1i1age s vnd '7 or~cin~ 

conditions. The Code Authority shall within 5 days efford 

an ooport~~ity to t e mem er filin 0 the urice 1o ans~er 

such compL.in t and shall 1i thin 14 days make a ruling or 

adjust~ent thereon . If such rulin is not concurred in by 

either 11ar ,- to tl e comp l a int , all -.)apers shall be referred 

to tl e :?.esearch and Planning vi vision of ·rnA rThich shall 

render c:. reuort e.nd r ecommendation thereon to the AC'.ministrator. 

(b) When no d.eclared emergenc( exists as .to any iven prod.uct , 

here is to be no fixed minimum basis :or -orices. It is 

intended t a sound cost estime ing method~ should be used 

and tha consideration s ould be given o costs in the determination of nricing policies. 

(c) ·.men an emergency exists as to any given product , sale belc 

the stated ninimun price of such product , in viola. ion of 

Section 2 hereof , is forbidden . 

2. Emergency Provisions. 

(a) If the Administrator, after .investibation shall at an• timt 

find bo h (l) that an eoergency has a risen ithin the tra 

industry adve rsely affecting snall enterprises or ~ages or 

labor condi ions , or tend~nc to~ard. monopoly or other acutt 

condi ions ··hich tend to defeat the purposes of the Act; 

and (2) tha . the determina ion of the sa ed minimum price 

for a s-oecifiecl 1Jroduct ri hin the traD-e/industry for c: 

lini ed ueriod is necessar y to miti-~te the con&itions co 

sti tuting such emer genc7 and to effectuate he ·)url?oses of 
-29-

the Act, the Code Authority mf1Y cause an impartial agency to investica te costs and to recommend to the Administrator a determination of the stated minimum price of the product affected by 

the emergency and thereupon the Administrator may proceed to determine such stated minimum price . 

(b) When the Administrator shall have. de.termined such stated minimum 

price for a specified product for a stated period , which urice 

shall be rensonably calcula ted to mitigate the conditions of such 

emergency and to effectuate the pur:p o.ses of ·the National Industrial Recovery Act, he shall publish such prfice . Thereafter, 

during such stated; period , no member: of the ·trade/industry shall 

sell such specified products at a net realized price belo~ said 

stated minimum price and .any such sC~ e shall be deemed de structive price cutting. From time to time , the Code Authority may 

recomnend review or reconsideration or the Administrator may 

cause any determii:.ations he r eunde r to be reviewed or reconsidered 

and. a ppropriate action ta.ken . 

HUGH S. JOHNSON , 

Administrator for Industri8.l Re cover y . 

Washington , D. C. 

July 10 , 1934 

9530 
- u-

~ -:JPE"wiX I • 

PBESCRI:BE'"G RULES Al~D rt.EGUL.ATI01 S TO SUPPLEME1TT ADMINISTRATIVE ORDER m. X-61, 

DAT:ED JULY 10, 1 - 34 , Al\1D TI:E BAS I C CODS AHNEXED THERETO . 

B~~ vL'tue of authority vected in me as Administrator for Industrial 

Recover .. ~ m1der Title I of the ational Industrial i:1ecovery Act the follo•;•ing 

rules and re~ulation s are hereby prescribed to sup~lement the above-mentioned 

Adninistrative Order and Code : 

1 . The n inimum rates of pay provided for in Article II of said Basic 

Co C:.e sh, 11 a·pnly, irresl)ective of whether an employee is actu..ally 

con·.Jcns<.1.ted on a time rate, ·.J iecer;rork, or other basis. 

2 . Fer.~nle employees :9e rfor. ing substantially the same \7ork as male 

emplo ees shall receive the same rate of pay as male emplo ees. 

3 . ·,o enployer shall uerrni t any em'Dlo_ree to ryork for any time -rhich, 

-r~1en t.otaled ·1i th thCl.t already performed for anothe r emplo er or employ 

c-Is c:{CGOd<, the na::dmun p orni t ted hc.r 8in. 

"1 . ~~o ermloyer shall reclassify emplo rees or duties of occu:pations 

:Je1~f0 rm d or engage in anv other subterf e so as to defeat the 

·J u~·oo se s or provisions of the Act or of said Basic Code . 

5 . 'i"!o e. l}loye r shall dismiss or demote any employee for making a 

comulcint or giving evidence with r espect to an all eged violation 

or the ·orovisions of an~r Code of Fair Competition. 

6 . Code Authorities selected b~r industry in accordance '1ith Article 

I .- of said Basic Code shall function at the exnense of the industr 

in accordance r:rith such further rules and regulations as the 

_ W'!inistrator may proscribe . 

7 . Jo p rovision hereof, of said Admini strati ve Orde r o . X- 61 or of 

se.id Basic Code, shall supe rsede any State of Fed~=>ral law r:rhich 

iuJ.Jo"'e s on employers more stringent r equirements as to age of 

employees, wages, hours of work , safety, health and sanitary 

conditions, insurance, fire orote ction or gene ral wo r king 

conditions, than are im os d thereby. 

8 . ·ro ,Jrovision hereof, of said Ad.rnini strati ve Orde r l o . X- 61, or of 

said Basic Code shall be so ap~lied as to pe rmit monopolies or 

monopolistic p ractices, or to eliminate, oppress, or discri~ina e 

against small enter prise s . 

hlJGH ~ JOHNSO , 

Adninistrator for Industrial Recove r v . 

Was~in~ton, . C. 

July 10, 1934. 

9630 
APPENDIX V. 

OFFICE iJiEl iOR.AlJDUul NO . 251 . 

~uly 10, 1934 . 

Procedure for Handling the Comol e tion of Code ~.l aking I --

Office Orde r No . 100 , estabJishes a Committee for the Co m-·!letion of Co cl..e akin , and charges tha t Committee V?ith the sup ervision of 

the e~~ec1,_ tion of the p l r> n embodieCi. in Aciministrative Order X-61. The 

Division Adli1ini stra tors, in accordance with this Order , will name re:JresentD.ti ves to coo erat e \7i th t his Co rnmi t tee . The method of coopera tion 

will be as follows : 

9630 

1 . T}fe Committee \rill i nme di a tely distribute to each Division 

liais on officer ~ set of docm ents , including a copy of the 

Basic Code a nd rela ted Administrative Orders, for each cocle 

\7hich anai ts · ,1pnrova l b y each Division. 

2 . Within a week of the receipt of these documents , they nill 

be sent out to each uncoded. ind.ustrr with a covering lette r 

written by the De-·)uty or Assistant De:9uty Administrator nho 

has been handlin~ any negoti a tion ith saiQ uncoded industry , recoTTJraendin5 1.et s a id in<iustr;r' s code be disposed of 

in accordance nith the u rinciples laid <iown in Administrative Order X- 61 . 

3 . As soon as these letters have been sent out , progress 

rep orts sha ll be made to the Committee on the Completion of 

Code R~a.: :in by the .Divisions , indicating to what inclustries 

the letters have been sent , anci nhat the recommendations of 

the .Division have been nith regard to these industr,i ·es . 

4 . Divisions ~ll continue to submit weeklJr reports on Satur-

~.-s to the Cornr'li ttee on the Completion of Code Making as 

to the prog ress which h a s been macie Ci.uring the days covered 

by these repor ts. 

5 . The Committ e e on the Compl etion of Co de Makinp; may recommend,to ,the Administrato r any changes in this procedure 

which it m~r deem advisable in or de r to complete code 

making in the thirty- day period allotted.. . At the end of 

this thil,ty- day ueriod , the Committee will make a definitive re:9 ort , including any recommendations as to further 

action . 

By direction of the AG.iainistra tor: 

G. A. LYNCH, 

Afuninistrative Office r. 
,..., -... -

FFIC.D O~R UO . 100 . 

July 10 , 1934 . 

Auuo intment of Committee for th ~ Comnletion of Code •. ~~ing 

A Commi ttee i s hereb~l an1)0 inted to su.)ervise tne e :ecution of 

the :.? lan embodi ed in Admini streti ve Or der X- 61 , aonroved bJ the Ac'mini strator on JulJ 10 , 1934 • . embersnip of the Cor:mittee : 

Robert K. Straus, Ch irman 

eor~ C. · .. rarsLall 

Geor ge S. 3r ad..r 

The Committ ee will request each Division Ac'u11 inistrator to set 

lect a liaison officer fro . their r esuective Divisi onE to coope r ate ith 

it in the exe cu ion of t' i s ~lan . 

rhe Conmi tee will make a re:)ort to t he Administr ator thirt~r 

days hence as to t ... 1e ~) re ess of the lan , including ['JJ.y r ecomrnend2.tions 

for further action hich rna.r be necessar' at tha t time . 

9630 

By direction of the Acimini s trutor : 

G • .A. LYNCii , 

Administrative Of ficer . 
-33-

APPENDIX VI . 

ADMINISTRATIVE ORDER NO . X-84 

PROVIDING FOR THE SELECTION OF THE MEMBERS OF THE GENEB;AL 

NRA CODE AUTHORITY 

By virtue of the authority vested in me a~ administrator 

for Industrial Recovery under Title I of the National Industri.al Recovery Act , by Executive Orde rs of the President and otherwise, it is 

hereby ordered that the General NRA Code Authority provided for in 

Administrative Order No. ~62, dat ed July 10 , 1934 , shall be constituted as follows: 

There shall be one member who shall act as Chairman, 

to be appointed by the Administrator, and three other members 

to be appointed by the Administrator as follows: one with the 

advice of the Industri al Advisory Board, one wi~h the advice 

of the Labo r Advisory Board, and one with t he advice of the 

Consumers' Advisory Board, of NRA. All guch members shall act 

upon all mat te rs considered by such Code A,uthori ty. ~c additional menre r shall be a?pointed by the Administrator with 

the approva: o~ the Industri al Advisory Board of NRA for each 

Industry w~cse code is administered by guch Code Authority. 

Each such ad.di tional member shall whe r ever p racticable have a 

special knov{tedge of t he I ndustry which he is ~p ointed to 

rep resent ~::l shall act as a member of such Code .Autho rit y 

only upon m&bte rs which pertain to the code for such Industry. 

HUGH S. JOHNS(5N 

~dministrato r for Industrial Recovery. 

Washington, D. C., 

September 7, 1934. 

9630 
APPENDIX VII. 

lill~ P ISTRJ TIVE ORDER NO . X-89 

Supplementing Administrative Order No . X-61 

by of fering a Basic Code to Grocery anufacturing Industries. 

By virtue of the authority vested in me as Administrator for Industria] 

Recovery , ancc in order to further the purposes of Administrative Order lo . 

X-61 , of July 10 , 1934 , it is hereby ordered that : 

1. The Code of Fair Competition for the Grocery Manufacturing Industr1 

(annexed he r e to and mA.rked Exhibit 11 A11 ) is offered to each grocery, 

manufacturing industry not yet codified under the Act , in lieu of 1 

Basi c Code , and t o each grocery manufacturing industry now odifie(' 

und r the Act, in lieu of its own code . 

2 . If an applicrttion is made for said Code by any group truly represei 

ative of a grocery manufacturing industry and if there be no objection by any party in material interest after ten (10) days publishc 

notice to all concerned , such Cocl.e shall , without further hearing , 1 

reference to Advisory Boards or other administrative action , bccom< 

effective ten ( 10) days after its approval by the Administrator, i l

1 

industries employing loss than fifty thousand (50 , 000) persons, or 

b-- the ·President in all other industries. 

3 . For the purposes of this Order , a grocer y manufacturing industry i1 

.defineQ as follows : The manufacturing , processing, canning, packi1 

bottling and/or importing hnd sale by the manufacturer , processor , 

canner bottler, packer or importer of any one or related group of 

products com.'Tionly known as food and/or grocery products, except thcl 

products which are principally sold through other channels than th•l 

wholesale and retail grocery trades. 

4 . Grocery manufacturing industries are exempted from Administrative 

Order X-61 . 

5 . It is recognized that the ~olicies of the Act. ca1 better be effect· 

ed in the grocer y manufacturing and distributing industries if all 

such industries are subject to code s of fair competition containi~ 

substantially comparable provisions. Accordingly, all uncodificd 

grocery manufacturing industries which d.esire codification are requested to apply for this Code ; and all codified grocery manufactu 

ing industries arc requested to consult the Administrator with a v 

to applying for this Code or adopting such modifications of their 

codes as will result in such substantially comparable provisions. 
-35-

6. In accordonce with the intention· of paragraph 4 in Administrative 

Order X-61 , hearin5s will be held as to any uncodified grocery manufacturing industry which has not applied for this Code within thirty 

(30) days after the date hereof . 

Order recownended : 

Armin. W. Riley, 

Division Administrator . 

September 21, 1934 . 

< • 

9630 

HUGH s. tTOHNSON 

Administrato r for Indus trial Recovery . 

~ I • 
CODE OF FAIR ,if.JT TIO 

:1T:G 

GROC3::ttY J, TJF CTU!U G I IDUS'i'RIES 

To effect tn.:: licics of Title I of the ·ationnl Industrial Recovery 

At, the followin0 provisions ~rc est·blisn8d as a basic Code of Fair Competition for the Grocery .anufacturin5 Inuustrics, and its provisions s all be the 

s ~:md·1rd., of f.:1ir cor:hp"ti tian for every sucn ii dustry and shall be binding 

u n e or:· ml:mbLr of any one or more there-of, as hercin1ftcr in Article I 

r vidcd . 

~TICLE I 

Apnli ntion of Code 

s~ction 1 . T1c provisions of tnis Code shall a~ply to the members of any 

F,roccr, re~ufact riLg indust~y upon ~pr~val by t1c Administrqtor , puJ'suant to 

Administr tivc Order :·o . X-8J. , of an arrlication to him by any group truly 

rcnrcscnt:>ti vc t1 crcof. T'ne ... d.ministrator rr:ay make sucn exemptions r.i th 

rcspc t to specific provisions herein as he may deem pproprintc to avoid conflict with ~revisions in ~ny separntc approved Code of Fair Competition for 

su h industry ; and he may ap•rove amcnlli~ents hereto ~ith respect to any 

ro cr. manufacturing ind stry. 

A.itTICLE II 

Definitions 

SGction 1 . As used herein : 

(a) Grocer. Industry . The terms 11 Groccry ianufacturing 

:ndustry11 "nd 11 Industry11 mean and in ludc any industr~,r as defined in an application and anpro al thereof by the A~~inistrator pursuant to Administrative 

Or der o . X- 89 . 

(b) Grocery .. anufa turer. Tl e term 11 groccry manufacturcr 11 or 11 manufacturcr11 in ludcs , but ·it out li itation, any incividual, partn-Jrship , asso iati0n, orporation or other form of enterprise wholly or partially engaged in 

a gro cr mannfacturing industr~·, cit or as an employer or on his or its own 

behalf. 

( ) .Emnl .. ec . T" c term 11 er:,plcycc 11 means any person cngag0d in a grocery 

manufacturin~ i.du~tr in anr apacity and rccci ing compensa tion for his 

crviccs (except a manufacturer or ~ bro":cr) irresrcctive of the nature or 

method of payment of s~cn compensation . 

( ) Z..Tlovcr . Tr.e term 11 employer 11 recans ;my person by •. hom any such 

employee is cow ,cnsatc1 or employed . 

(c) Outf;idc Sel'"'sman . he terre 11 outsidc salesman" means any salesman 

~ · o is cnr;aoeC: not more than tw_lve (12 hours per ..,·cck inside the cstabli~h

cnt , or nny brancn thereof, of his cnplover ~nd who docs not regularly dcliv~"r mer handisc . 

963 
- 37-

(f) ~atchman. The term 11 watchman11 means any employee who is engaged during at le~st nine ty per cent (90%) of his working hours irr watching and guarding the p1emise s and property of any establishment of a memb er of the industry. 

(g) Trade Buyer . The t erm 11 trade buyer" tneans any commercial buyer as 

distinguished frqm an ultimate consumer ~uyer. 

(h) Presi dent. Act and Administrator. The terms 11 Presidentlr1, 11 Act 11 and 

11 Administratorn mean, respectively, the President of the United States, Title 

I of the National Industrial ~ecovery Act, and the Administrator for Industrial Recovery . 

Section 2. Population and trade areas for the purposes of this Code 

shall be determined b;· reference to the latest Federal Census and metropolitan 

areas designated therein. · 

ARTICLE III 

Hours 

Section 1. No employee sha ll be permitted to work more than forty (40) 

hours in any week or more than eight (8) hours in any day, with the following 

exceptions: 

(a) The prov1s1ons of this Section shall not apply to employees engaged 

in managerial, executive, or supervisory capacities, regularly rec eiving not 

less than thirty-five dol'lars ( $·35.00) per week , and outside salesmen. 

( b) Wa tc:1men shn.ll be permitted to work not in excess of fifty-six (56) 

hours in any week. 

(c) Engineers and firemen shall be permitted to work not in excess of 

forty-four (44) hours a week or in excess of nine (9) hours in any day. 

(d) Deliverymen, outside truck drivers and chauffeurs, shall be permitted to work not in excess of fort - eight (48) hours a week. 

(e) The provisions of .this Section shall not apply to employees engaged 

in emergency repair and emer gency maintenance work involving breakdowns or 

protection of life and property; provided that in every such case employees 

engaged in such work shall be compensated at a rate of not less than one and 

one-third (1-1/3) times their normal hourly rate for all hours worked in excess of the bas~c hours provided in this Article. 

(f) During any eight (8) weeks in each c alendar year, employees may be 

permitted to wo rk six (6) hours per week in excess of the foregoing maxima, 

provided they are paid at least one and one-third (1-1/3) their normal rates 

of pay. 

Section 2. No employee ·shall be permitted to work more than six (6) 

days in an seven (7) day period. 

9630 
- 38-:-

So tion 3 . All oreTloy~cs , ex e~ t those en m~r ~cd in subsec tion (a) , 

L tion 1 of t} i Arti lc, sl 311 be compcns[te0 at a r ate of not l ess than one 

nnd onc-tr ird ( l -1 /3) tim s their no 'TN1.l 1 o rl;r r·>te for all hours worked on 

the followin~ olida;rs: Christmas D:1~.', ~'llksgiving Day , George ashington 1 s 

Birttdny, Labor Da, , Jul, Fourt1 , lew Year 1 s Day ,_ nno. such other holidays as 

may be r ocl nimed b the Pr usi lent of tlc United States, 

1TICLE IV 

Vl "1ge s 

Section l . o employee enP-aged in clerical , accounting or other office 

wo r k shall be paid l ess than at tne r "t e of: 

Sixteen dollars ($16 .00) per week in citi es of over 500 ,000 population 

or in the im.cdiatc trade area thereof; 

Fifteen dollars ($15 . or) per eck in i ties be tween 250 ,rco and 500 ,000 

opul~tion or in t he immediate trade areD ther eo f; 

:?oUl·tcen doll:lrs ( .t> l4 . 0G) per week in ot her · l ace s; excep t that office 

boys and mcs engcrs mey be cmploycci at a r tc of not l ess than two dollars 

( !>2 .00) b'clorr t he above minima ; p ... ovided thnt where any employees are classifiea and com, ens;; t ed as office boys or mcs~engcrs not mo r e th3Il fi vc per cent 

(5<) of all office employees sh 11 be so classified and compensated , except 

that c~ n establishrr.ent may employ at l east one office boy or messenger at 

such rc:ttes. 

Sec tion 2. o wntchman s11all be paid less than at a rate of eighteen 

do llars ( .pl8 .00) per fifty-six (56) :C10ur week. 

Sec t ion 3 . o em:r;lo:ree , otner t han tho so covered in Sect ions 1 and 2 

of his Article , sl all be p.-,id a t a rate of less than forty cents (4C¢) per 

hours except t: at su h ~mp oyee s may be p~ id a t a r ate of not less than 

thir ty five cents ( 35.;) pe r hmrr in Vi rginia , North Carolina, South Carolina, 

Tennessee , Alabama , Georgia , Fl orida , 1ississi ppi , Louisiana , Texas , Arkansas, 

Okl~ oma , Kentucky . 

Section 4 . Empl oyees engaged in light wo r k commonly pe rformed by female 

operatives may be paid at r a t es not less t han five cents ~) per hour below 

the r espec tive minima established in Sec tion 3, of this Articl e . 

Se tion 5. Female employe~s cr fo rminb substantially the same work as 

male employees shall r ece ive the same rates of pay as male employees ; and 

·here the displace male rlo~ ecs they shall roc i.ve the same rates of pay as 

the rr.al0 employ0es displac d . 

Sec ion 6 . This Code cst~bliohes a m1n1mum r a t e of pay which shall 

apply, irrespective of whe ther an employee is actually compensated on a time 

r ate pic c wo r k , or r thcr basis. 

Se tion 7 . (a) In the event the normal full time ~eekly working hours 

of Any effipl o, cc shall , under t. e provisions of tnis Code be reduced by not 

mo r e han sixteen ~d two-tr.irds per cent (16 2/3~) under the normal full time 

weekly ~orking hours worked by said employee during the period fr m January 1 , 

9630 
1933, to May 1, 1~33 , the wages of said ~mplcyee shall not b~ r educ d br,low the 

normal full timP weekly wage paid said effiplo e~ dxring said perind frrm Janua~ 

ry 1 , 133~, t o May 1, 1333. 

(b) In the event th normal full time weekly working ho,rrs of any nmploye shall, under the provision s of this Code, be r educed by more than sixteen and two-thirds per cent (16-2/3%) under the normal full time weekly working h0ur~ wo k~ d b~r said Pmp loyee du ring the p8riod fr om January 1, ~33 s tr 

May 1 , 1933 , the wages of said employeR shall not be rrdured below the normal 

full time weekly wage paid said employAe during said period from .January 1 , 

1933, to May 1, 1933, by mnre than one-half (t) of th8 percentage of hourly 

r eduction in excess of said sixt ee n and two-thirds percent (16-213%) . 

( ) I n no case shall hourly wage rat es be r educed. 

eec tion 8 . Wages shall be exempt from fines and rebates; and from charges or d r:_uctions, except har ges and d0duct ions for Ampl oyees 1 contributions, 

voluntarily made bJr emplo yee s, or required by law, for pension, insuranc e or 

benefit funds. No empl oye r shall withho ld wages except upon s ervice of legal 

pr o ess or other pcpers lawfully r equiring such withholding. Deduc tions for 

other. purposes not heretoforP. stated may be made only when t he con tract is in 

writing and is kept on file by the employer f or at l east six (6) months after 

the comp l e tion of t he c ntract. 

Sec tion 9 . Employee s shall make payment of all wages in l awfu l rurrency 

or by negotiabl e checks payabl e on demand . All contracts of employment shall 

rrPscribe payment of wages at l east every t wo (2) weeks . 

S0ction 10 . A person whose earning capacity i s l imited b ecause of age or 

physical or mental handicap, or o the r infirmity, may e~emp loyed on l ight wo rk 

at a wage below the minimum est ab l ished by this Code, if the employer obtains 

from the State Au t ho rity desjgnat ed by the Unit ed Stat es Department of Lab or, 

a certificate authorizing such person ' s employm.ent at ·such wages and f0 r such 

hnurs as shall be stat ed in the c ertificate . Each employer shall f i le monthly 

.with the Code Authority a list of all such r ersons employed by h i m, showing 

the wages paid to, and thr. maximum hours of wo r k for such employee . 

ARTICLE V 

General Labor Provisions 

Section l. No person under sixt een ( 16) years of age shall be empl oyed 

in the industries. No person under eighteen (18) years of age shall be eml oyed at operations or occupations which ar e haz ardous in nature or danger ous 

to health. The Cnde Authnri ty shall submit to the Adrninistrat0r ~N i thin ninety (30) days after the eff ecti ve dato of t nis Code a l i st of such nreration 

or occupations . In any jurisdiction an empl oyer shall be deemed to have comp li ed wi th this provision as ·to age if he shall have nn file a cer tificate or 

permit duly signed by the aut ho r ity in such jurisdiction rmpr.were d to issue 

empl oyment or age certificat e s or pennits showing that the employee is nf th(' 

r quir ed age . 

Section 2 . Effiployce s shall have the r ight to organize and bargain ollectively through r epr esentatives of their own choosing , and shall be free 

from t he interferenc , restraint , or coer cion of empl oyers of labor , or their 

963n 
.... - .. ... .. i.·_ to ('e i ·n· .. ·, __ of s ..... ~-- r ·- ~.; _ : ., · r13 .., ~ril:; l.-c~ ·1.:..:->t.')::: :)::'in 

other 0. Cu-·t d ·cti ities f o .... · . L: UlJ)0.:3L: Of collc:ctivc b1.I'gaining.or other 

mutual aid or rotcction . 

Sect ion 3 . · o emr loyec and no one s ... c'·-in -~ em): lo, :ne t shall be required 

as a ccndi tion of cmployinent to join :mJ compru1L· 1mion or to refrain from 

joini. , or -ani.d:1 ;, or ass1stinb n. lobor or~aniz tion of ~1is own c oosins• 

ectio1 4 . 

murr. r· tcs o! IJa:· , 

by t}e President . 

Emr.lo;,-Pr s s ... all com ly ·;;i tn t11e maximum hours of l1.bor , !Dinid other conditions of cmp oJ~ent , approved or prescribed 

Section -; . ~o emp o~,rec no·., 1.3m:p loyed at a rate in excess of the m1n1mum 

shall be ciisch~re;cd and re-emplc;{ec ~t a lo\·:cr r~te for the purpose of evading 

the revisions of this ode . 

Section 6 . : o provisi')n in tilis Co0e shall sup .rscde an'~- law which ir.!-

po ses on ernplo~ t.rs mo:::-c s trin.gent requL·emen t s ~ s to C.16e of employees , v1a~es , 

hour of .or k , '1 r as t o safc t~r, healtil, so.nitar:' or general working conditions, 

or insurance , or ;ire protect ion , th::m arc imposed. by this Code .. 

Section 7 . · o employer shall lmowing ly permit any employee to ork for 

a tctal nurr.bJr of hours in excess of the number of hours prescribed for his 

oc U..¥'1tion for e.:-cil R!Ck pndr\;• "ne t er employed by one or more employers. 

Section 8 . · o cmJ:loyor s!wll reclassif cmploy~Jes , or reclassify the 

duties or occup<'tio:us pcrfor ed by them , or change t· e meti1od of corr.!'ensation 

of employees , or cng1.gc in any subterfuge which t ends to or will defeat the 

purpose r provisions of the ct or of t h is ·Code . 

Section 9 . .Every empl oy ,r sn·t ll provice for tne s·1fety ond health of 

employees during the hours ,nd a t the p l aces of tl.eir cmplo~ent . Standar0 s 

for safet • d hcaltn sho.ll'be submittei b;r the Code .Authority to the Administrator withi three (3) :nonths after tne efr'ective date of this Code . 

"ection 10 . . 11 employers sn,.ll p st c.nd kcc}; posted copies of this Code 

in conspicuous laces accessible t o all employocs . Every member of the industries shall comply with all rules ~nd r e5Ulations relative to the posting 

of provisions o~ Cooes of Fair Competition vh ich m<y from time to time be 

pres ribed b:r t' e .:...c1ministrator . 

ARTICLE VI 

izotion , Po-.,")rs and Duties of Code uthorities 

Part A - Or~ani~~tion and C0nstitution . 

Section 1. I!'llr";edi"ltcl: upon t o arpro al by the Administrator of an 

a plica ion , pursu~t to Article I , Sc tion 1 , of the Cooe , a Code Authority 

shall be ensti~utc& for tic apnlicant ocery manufacturing industry. 

Section 2 . Each such vod.e A t' orit.r snall cnnsist of the number o; members sJ,.ccificd in the 8pplicntion for t. is oie b...r the industry for which it 

is to be constituted ; and the mcmb~rs snull be ~roce ry manufacturers cnga~ed 
- 41:_ 

in su ch i ndu stry and shall be se l ec t ed in the f ollowing manner: 

(a) Ti thin fi± teen ( 15) days aft er t he approval of such appl i c a tion the 

appl i c ant trade asso ciation or group shall institut e an election of the members 

of t he Code Authority fo r such indu stry. If c andi dat e s are nomina ted by such 

trade as·so ciation or group, due consideration shall be given t o t he proportion 

of groc ery manufac turers who are members and who are non-membe rs ·of ·the tr ade 

association or gr oup . Membe rs so e l e cted shall hold office fo r one ( 1) year 

or until their succ essors ar e el e cted as he reinafter provided. Va canci e s in 

membership of a Code Authority shall be filled for 1..mexpired t e rms by the remaining members of such Code Authority subject to the approval of the Administrator. 

Each grocery manufa cturer engaged in such industry shall be entitled to 

one (1) vote for each member to be elected to the Code Authority, and may cast 

all votes for one person. At each election the voting may be in person, by 

proxy, or by lette r. 

(c) . Any groc ery manufacturing industry subject to the prov1s1ons of this 

Code may, under such rule s and r egulations as the Administrator shall pres~ 

cribe, change the me thod of s election of its Code Authority as prov-ided for in 

this Section, and such modified me thod of selection shall be followed in all 

subsequent elections for the Code Authority of such industry. 

Section 3. In adct ition to memb ership as abov e provided there may be on 

each individual ·coc e Authorit from one (1) to three (3) members, withou t vo te, 

to be known as Ailininistration iemb ers to be appointed by the Administrator to 

serve for such t erms as he may specify without expense to the industry. 

Section 4. Each trade or industrial association or group directly or indirectly participa ting in the selection or activities of any Code Authority 

shall (1) impose no inequitable restrictions on membership, and (2) submit to 

the Administra tor true cop ies of its articles of association, by-laws, re6ulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the A~~inistrators 

may deem necessary to effectuate the purposes of the Act. 

Section 5 . In order that each Code Authority shall at all times be truly 

representative of· i.ts individual industry and in other respects comply with 

the provisions of the Act, the Administrator may prescribe such h~ ringg as 

he .may deem proper; and thereafter if he shall find that the Code Authority in 

question is not truly repr e sentative or does not in other respects comply with 

the provisions of t:ne Act, may require an appropri a te modif'ication of such 

Code Authority. 

Section 6L Nothing contained in this Code shall constit~te the members of 

any Code Authority, herein. provided for, partners f or any pur.p·ose, nor shall 

any member of any such Code Authority be liable in any manner to anyone f or 

any act of any other member, officer, agent or employe e of such Code Authority. 

Nor shal l any memb er of such Code Authority, exercising -reasonabl e diligence 

in the conduct of his duties hereunder, be li able to anyone for any action or 

omission to ac t under this Code, except fo r his own wilful malfeasance or nonfeasance . 

9630 
-·1: ... -

ection 7 . In :tdd J. on to ~, u i r1 i l.du. 1 ind J.str·r Code u. hori ic.s .)T -

.:.c:._d f r in S ction 1 of t is )i.r"" ir.L ... , the re shall be. crms i tu c;d a ational 

Food an Groc~_;ry . . ~ lUfrt c rin~ .l ..... ·;- ~ r, r ..... rd. ~.. n._ . s ns of Onl; . ~mb~... r to be 

1 ct~...:i by ~:-tel indivitLml ir ... 1.:. r"· Co ~J .Authority from i s i:1dustry. In 

::.dditi un to th mc.mbt: ship ns abuv~,;; ~roviclt..d , he .A.dminis r.'ltor 111ay ap.:>oint 

no or han fi e ( •) e.· bers ,i tho vo L o s~.,;rve for s ch ime as he may 

s ~...c·f • 

( 1.) mho :.tion;.:ol :-ood and Groce y · ;."mli' c turin rJ vis .... ry 3o3.rd shall be 

..,n ad ·i sOl-- u lannin ., [Uld ccorciin· t ing e.G~;. 1c r ,-i thil ti. e 1cru ing of he Act fo r 

all rocbry m..,ntlf"!.c uring indus ri s to 111 ich all co""lmon rna t.:;rs may b~ reft..rr~d for advice . 

(b 1 . The et i • n"'l Food and Grocery ."'nuf3.c uring Ad isor y Board shall 

apo int a rt.'9I'l.S1..n ative or re:pr~...st..n ativt..s to s&rve on a Food and Groc~...ry 

Indus ry Conf~runct.. CoMMi tee to be conposGd of r c.pr escnta ives from food and 

gr oct. ry v; olcsalers, rc ailcrs, and M"l.nuf"c~ ers. T'e Food and Gr oc r y Industry Conf~...rc.ncc Com1i t ce :a·· act ac )lanning and coordin.::tting ag0ncy within he mvaning of he _··ct for ~ e ~...ntire food and gr ocer ... r ade . 

Sc-ction 8 . If t'1~ A.dr.1inistr3. or sh::tll at an·r tir!le detc.r Mi ne that any 

action of ..,n~., ind i vid !:1 1 Co:ie Authority or r:tny agonay th rcof or of the 

.Advic-ory Board m, y oe unfpir or unjust or contra r.r to the :public in t;;r est , he 

Adminis ra~or ~ay reo ire tnat such action be suspended to afford an oppo r~unit 

for invG s igat1on of the rneri ts of such action (lnd f rti1 r considorR. ion by 

sue Cod~ A hority or agency or Advisory Boa rd pending final a ction hich 

shall not be effective Q!lt..ss the Adrninist ~ or app ov~s or unl ss he shall 

fail to dis!:tpo r ove ::~ fter hJ. r y (30) days 1 notice to him :::>f i:1te:1 ion to p roceed wi h s ch nc ion in its original or modifi8d fo r m. 

Sc.ction 1 . S, bj c o s ch rul~:...s and r E:.gul3.tions PS ""lay · e iss ed by he 

Ad inis rator, ~:...ac~ Cod~ Authority as provid~d for hLrein shall have the follo 4 

in oOHt..rs o:u1d ·utie s · i th r C;SDLct to tho gr oce ry rn:=muf:~.ctu.rL1g ind.1stry 

ing it in ~ddition o t. ose au horized by other ;revisions of his Code . 

("") To in sur~;. the .:ecu ion of the p rovisions of his Code and to p r ovide fv r the compli~nce of the industry ~ith the nr ovisions of he ~ct . 

(1 To ~dout by-la s and r~~...s £nd regul tions for its p rocedure . 

(c) o ob ain fr01n groc~;;ry r1amuactu.rcrs s.1ch infor m.q,tion and r e'Jurts ::ts 

e r e q ir~d fur he .drninis r~ iJn of the Cude . In addi ion o inforrna ion 

required o be r-ubmi t cd to hL CoCu Au huri ty , :rocory rnanuf"'~cture rs shall 

furnish s ch sta istical inform"vJ. ' n as ~he Adminis rRtor nay deem necvssary 

for ~he ·)url')oscs rE::ci ed in Sc,c ion 3 (a) of tl c A.ct o such Federal a nd S ate 

ag·n ics PS he May d~sign~te ; r ovid d t,at no hing i n this Co ~e shall r elieve 

any groc• ry oanufn. tu.rc r of any t;:;:is .. ing obliga ions to fu.rnish r epor ts to any 

o rnmt;;n.L a.t;Gn y . : o indi vid.A3.1 ren or s ."'ll bu disclosed to any o he r gr oce ry 

manufacturf-'r o any other :oar y LXCO Jt to s1.·ch other Go ·e rrunental agencies as 

may be 'irt.c"" i b;r he _drninis r'l or . 

(d.) - o u e such trade: as:-wciati ons nd oth r agencies r\S i · dee:rns p r ope r 

9630 
- 43-

for th carrying out of any of its activiti e s y rov1ded for herein, p r ovided 

that nothing he rein shall r elieve the Code Authority of its duti es or r esponsi bili tics under t his Cod.e nnd tl111t such trr>..de associr=~ tions and agenci e s 

shall at all times be suu j ect to and comply with the pr ovisions he r eof. 

(e) To make r commendations to the Adr.linistrator nnd the National 

Groce ry Manufacturers Advisory Bo-=trd for the Coordlnn.ti on of the adrninistrati on of this Code a nd such otho r cod..:; s , if any·, as mA.y De r c l n. ted to or affect 

membe rs of the industri e s. 

(f) 1. !t being found necessarJr in order to sup1Jort the administration 

of this Code and to mainta in the standards of fair compe tition e stablished 

hereunder and to eff actua te the po licy of the Act, e~ ch such Code Authori ty is 

authorized: 

(a) To incur such r easonable obligations as are necessary and pr ope r for the 

foregoing purp ose s, c:md to meet such obligations o~t of funds which may 

be raised as he~e i n?.fte r lJrovided .md which shall be held in trust for 

the ~urpos s of the Code; 

(b) To submit to the Administrator for his a:p·0roval, subj ect to such notice 

and opportunity to be heard as he r•1ay deer1 ne ce ssary (1) an itemized 

budget of its e stimated expens e s fo r the for egoing purpose s, and (2) an 

equitable basis up on \7hich the funds ne ce ssa ry to support such budget 

sha ll. be contribut ed by groce ry manufactur ers; 

(c) Aft e r such budge t and basis of contribution have been approved by the Administrat or, to det e rmine and obt in equitabl B contribution as above set 

forth by all grocery manufacture rs, and to that end, if necessa ry, to in-:o 

stitute l egal p r oce edings the r efor in its own name, 

2. Ea ch grocery manufacturer shall ~ay his or its equitable contribution 

to the expenses of the maintenance of its individual Code Authority, de t ermined as hereinabove provided, and subj e ct to rule s and r egul a tions pertaining 

ther eto issued by the ministr~to r. Only grocery manufacturers complying 

with the Code and contributing to the expens e s of its administration as he reinabove provided (u:1.l ess duly exempted f ·r om 111aking such contributions) shall 

be entitled to rticip e in the selection of uem) ers of the Code Authori ty 

or to r e ceive the benefits of any of its voluntary activities or to make use : 

of any emblem or insignia of the Natiqnal Recovery Administration. 

3. Ea ch Cod.e Authority sha ll ne ither incur nor !Jay any obliga tion substantially in excess of the amount thGr eof as e stima ted in its ap)roved budge t , 

and shall in no event exceed the total amount conta ined in the approved budge t, 

except upon ap9rova l of the Administrat·or; and no subsequent budge t shall contain any deficiency i t ern f( r expGnd.i tur e s in ex s~ of p rior budge t estimates 

except those which the Admini strator shall have..,s approv d, 

(g) To delegate to the Nationa l Food and Gr ocery Manufacturing Advis ory 

Boa rd any or a ll of its uowe rs and duties unde r this Co'do as now consti tuted 

or hereafte r amended. 

(h) To r ecommend to the Administrator any a ction or measure de emed ~­

visable including furthe r fair t r ade p r ac tice p r ovisions to gove rn its gr ocery 

Q{;'Z,('\ 
mqnlli.a ~rs in rt..la i n with v::l.ch othd r or i h o h r indus r ies; measures 

for :n stri~l nlan1 in ~ d stabilization of em~loymLn , and including 

modifications of his Ccd~ ncrtain · ng o i s pnrticul1.r gr oce.ry mCl.nufC~. tur

in indus ry which shall b come cffLctive as p~rt he.r oof upon apo val by the 

Admini s ra or uftL r such notice and heC~.rLlC as he :'1ay succify. 

ARTICLE VII 

SLc ion 1 . Oobn Price . (~) lo Groce ry manufacture r shall of fer to se ll, 

:; . con r"lc to sell , or sell (w~ceDt pur suant to a mutual l y i rrevocabl e contr ac 

to sell no in viola ion oj his Code whe n enter ed i nto) any ur oduct to a 

rade buyer except ·pon the basis of an op~n pr ice which is stri ctly adhe r ed 

to wlile effective . Tle te r m "open price" as used i n this Sect ion means a 

- ic~ list (v) ~hich is published or available fo r he equal inf ormation of 

all trade buyers ( ::~.ct al and solici :e 'llilce loc::d: ed in he same competi ti Ye 

marke ~rea , nd (b) whl. ch d.ecl 'lrc s all 1 e manuf"ctur er 1 s ur evailing pri ces, 

C~nd discounts, rebates , all 0\7anct;s , and all othe r ter ms or condi t i ons fo r the 

. sale of such ~ro~uct . 

(b o gr ocery manufncturer shall make or pe rmit to be made any dir ect 

or indirect price concession to a t r ade buye r . Th~ term fld i r ect or indirect 

price concession 1 means any var iation f r om he manufactur er's open pr i e3 , 

ht:ti:er by meru1s of a rebate , allo'.7::lnce , payment , f r ee deal , gift , br oke r age 

or by P~Y. o h& r means whatsoever. 

(c) This S8c ion shall not appl y to sal es of commodi tie& cust omAr ily 

sola in bulk cr a bid ~d asked basis in open competitive. buyi ng ; not o sal es 

f0 r ch1.ri table or .rLliGf purposes. ' 

Sec ion 2. nvar!led Service P~yme . o gr ocer y manui·;.c u r er shall 

desigrlPte as an "advertising allo•vance 1 , a "pr omotion allm.,'lnce 11 or by a 

simil1r tGrm , any price reduction , discoun , bo.us, r cb'l.te , concessi on, or 

o her form of allow~ce , or any consider ation fo r adve r tising or or omotion 

service~ offered or given by him to any custome r • 

. o grocery rnanufqc urer shall offe r or rive any conside r ation mer ely fo r 

uushing 1, 11 ad ertising11 , or o.thc.r wise than for definite and specific adverising r uroMotion se r vices. s~ch conside r ation shall be giv n only pur suant 

to a separ att. wri ten con~ract herefor, which contr act shall specifical l y ~nt 

completely set for h he advc.:r ising or pr omotion se r vices (in such manne r 

hat their sp cif~c ch1. ~cter mny be und~ stood by othe r me~be rs of the i ndus~ry and huir cus o ers) to 1c perfor med y he rccinient of said consid~rativn , he pr ecise consi~~rat·on to b6 ?aid or given the r fo r by said 

anufactur~r , le me hod of d~ ermining uc fo manc~ , and all other ter ms and 

condi ions r la ing nere o. 

o orocery anuf~c ~rer shall offe r or ive any such conside r a ion unl ess 

it is eoually avuil~bl- for the s~me ser ice to all comnLt i tive buyers i n he 

same competi i w m rkLt , an1 unlLss a cop of the ~i en cont r act he r ef or is 

re aine1 on file fo r a p~riod of s1xty (bC) dn s ~ er the eA~i ation ther eof 

and in no event for less han on~ (1 ye~ . In order to investigate an al leged ·i ol ion of his Code , tl e iminis rater may r..: .. q ire a gr oce ry manufactur er 
- 45-

o r8_ort any such contract mqde by him ~nd/or to pr~duce a copy here f for 

insp ction. 

S ction 3. Destructive Price Cutting. Wilfully destru tive price 

cutting is an unfair 8ethod of competition qnd is forbidden. Any grocery 

manufacturer o'r member of any other industry or the customers of either may 

at any time complain to the np·oropriate Code Authority that any published 

price cons itutes ur~fair compet ition as destructive price cutting imp8riling 

small enterprises or tending toward monopoly or the impairmen of code wages 

nnd working conditions. Such Code Authority shall within five (5) days afford 

an qpportunity to he manufact~rer publishing the price t9 answer such omplaint'and sl~ll within fourte en (14) days nake a ruling or adjustment thereon. If such ruling is not concurred in by othe r pa r ty to the . complaint , a ll 

papers shall be r eferred to the Research and Planning Division of NRA which 

shall r ender a r6port and recommendation thereon to the Administrator. 

Section 4. QijnntltyPrice . No grocery manufa ctu r e r shall offer or make 

a quantity price unless it is based u~on and reasonable measured by a saving 

r esulting from a substantial difference in t he quantity sold and delivered. 

Section b. Unearned Disco ~t for Cash . No grocery manufacture r shall 

allow a discount for cash which is not earned by payment in accordance wi t h 

the cash discount terms specified in his open p r ice list. 

Section 6 . nt or Diversion of Broke a~. No ro~ ry manufacture r 

shall pay or permit to be paid a broke r age or commission to a trade buye r . 

Section 7. FraudulGnt Prize s or Premiums. No gr ocery manufacturer shall 

offer or give ~rizcs , premiums , or anything of value by any of the f ollowing 

methods : 

(a) In ways n}·dch invol ve l ottery in any fo r m, the term 11 lotte ryrr as u sed 

herein including b~t without limitation, ~~plan or Qrrangement whe r eby the 

premium offer ed involves the el ement of chance and/or diffe rs substantiully 

and inequitabl e in value f r om buyer and buyer of the same quantity and/or 

distribution cl ass; 

(b) In ways which invol ve misr epresentation or f r aud or deception in any 

f orm, incl uding , but without l i mitation , the wo r d 11 fre e " , "gift" , ''gratuity" 

or langua~e of simi l a r impor t i n conne ction with the giving of premiums for 

the purpose or with the eff e ct of misl eading or de~eiving buyers; 

(c) By giving p r emiums to any buyers when such premiums are not offeret 

t all customers of the same class in the trade a r ea. 

Section 8 . Unfair Substitution. r o grocery manuf 8.c ture r shall substitute 

without due notice and consent of a trade buye r anothe r p roduct for that ordered f r om him. 

Section 9. Comme rcial Bribery . No groce ry ma,nuf nctur er shall give * 

permit to be given , or directly offe r to give , anything of value for the purpose of infl uencing or warding the a ction of any empl oyee , agent , or representat ive of another in r elation to the business of the empl oye r of such 

9630 
.r:>lO,' , tLe oril. 1 ~.;f ..... ch or t1 rl.:u r c..; n d l')"r y , 1i thou the 

kno·l of s " l uyc: , .)rinci_!1al , or _'l.r y . ryrovision sl:all no 

rued or o~io .;.t iroo wd g-n~ .:. l ~ist rit-1 ion of articles comJ'!lonly 

U"'Cd for a 'v~.-r 1~1n · c. ·:cei'J S• f· r "'S sue)' · ·ti lcs arc "'C ally used fo r 

commercial bri Lry ~s h reinabovc d~fi lwd. 

s~ c t i on 10. _F=--.:'"I.l:=...::s:..::"':,._:=.::...::..~~- ..::.::.:d;:..:...r e;:..r;:....:_t.:;:.i..;:;s...;::..;..~ r1 ... n ~ n C n t a i ncr. o gr c ce r y manuf'-'~ctt..rt.r (~) ~h'l-1 ell f:::>lsvly or cocc.ptivcly labch.d or Mark~.-d ; 

or () fal~<.:l~- c r d..,Ct-) i e ly al't...rt'sc a )rJd.J.ct ; or (c) St; a deceptive 

con ~ in~..;r or gi v,_ s ... rt "'ei g. or 1c::-.sure or c "" un • 

Se tion 11. nfa1r Intcrf 

manufacturer shall unf'lirly in t..rfc.rc ,, i th 

1ng false ~ at n .... nt~ abou his busincsr· or 

or prod c s or b inducing a brGRc· of his 

.Art I CLE -I I I 

''odi:ic'1tion 

Comu~tito 1 ~usiness . o grocer y 

a coupetitor 1 s bu"'incss, by utt r -

by unfairly disp-...r.,.r;ing his business 

contr~c s • 

~ction 1 . This Code and all the evisions thereof a r e cxpr l.:ssly made 

subject o .he rieht of t 1e President, i n accor dailce "!i th the :.Jr ovi sions cf 

subsection (b) of Section 10 of the Act , f r om tiDe to time to ~cc l or modify 

any order , ap)rOT~l , liqense , rule , or regulation issued unde r Title I of 

s .i' .Act . 

S~.-c ion 2. s,~ch of the .. )rovisi ns of .1is Code "tS are not r equired to 

be incL~ded 1crein b.,r the Act may , "Ti th t.1C ~~prov·.1l of' he Admi ni str ?.tor , 

be nodified or cli~ina .... d in suc1 mann~.-r as ma.y be indic, ed by t c needs of 

he public , bu c ·mc; .... s in circl..J!lst:ulct;s , or - e .:...cperionce. 

ART-CLE ~:-

.:onooolics 

··o provision of 1 is Code shall be so ~op licd "S Lo pcrni t mononolies c r 

monoryolis ·c pr~c icss, or o eli in ~~u , oppress, or discri~in~te against 

small ~ntc riscs . 

.ART:CLE X 

Jne ,..,f he pro isions of tl.is C.)de rcla ing to prices or e r ns cf selling 

ship'in'"" , or .1ar .. & ing shall ap_9ly to c..Qort tr.,cle or S'1lt-s or shipments fo r 

export ... rade . ::2-~or I'rade 11 s· .~.all t~ O.'"'f1 (;d .... s sales or shi~men s out side 

of the continuntal ni e i S <:~.tcs . 

9630 
-47-

APPEll]) IX VI I I • 

June 9, 1934 • . 

TO: THE ADMINIST:LtATOR 

FROM: ffiA ADVISORY CO:JNCIL 

SU:S.J.i: CT: BAS I C CODE 

The Acvi sory Council une.ni111ously ap"lJroves your pro:oo sal for the speedy 

codific.2.tion of industry, if adjusted to care for the follo"'Ving specific 

re cor.r.1enda tions: 

9630 

1. Tlmt the proposed plan shall not an}Jly (a) to certain industries to be designated by the Administrator (or the 

.Advisory Council) whose codes are nearing completion; and 

(b) to certain few major industries as yet uncodified whose 

h1:9ortance warrants the pre-paration of individual codes in 

accordance v1 i th existing ~9 roc dure, such major industries 

to be desi gnated by the Administrator (or the Advisory 

COlli1Cil). 

2. That industrie s as yet uncodified and not covered above 

be encouraged to consolidate with kindred industries, 

thereby coming under the comulete urovisions of some 

existing approved code . The determination of the proper 

~~ indred industry shall be by the Administrator. 

3 . That all other industries now uncodified and not dealt 

'.7i th by the above provisions be urged to adop t the Basic 

Code . The provisions of the proposed Basic Code be modified as foll0\7S: 

A. That no flat declaration of hours and wages be 

made, but that the hours an·i wages for any industry applying for the Basic Code be those 

alrea;i,- approved for kindred industries, the 

Afuai n istrator to determine the proper kindret 

industry. The provisions of the lcindred industry code shall also apply with regard to 

daily and weekly maxili1um hours, permissible 

overtime and overtime wages. 

D. That the additional labor provisions set forth 

in Exhibit lf,Aif hereto annexed, and now recognized 

as standard urovisions, shall be included in the 

:Basic Code . 

4 . That there be clarification and emphasis to avoid possible 

false impression (received by all members of the Industrial 

Advisory Board) on the follov ing points: 
9630 

- -8-

:1 "t . is 11o··e 

fro1:1 i •1 st.ri,.,s, ' . i 1. 

o_t~nt excep io1nl in·ustri s , if 

to a p l;;· :=t •• c c. r8 fo m o have su .:; t rro r .::i ng 

conditions; 

3 . That this is not a, o u to force all rc~~ining inc1us tr ic s dc r code fl . 

C. That ne ~~rvicc code : ove is entirely senar ate and 

re 1.~ ins unchange , ; 

· D. ~hat t:1e ·1ur'UOSc of !ns J'love is to 1Jrov ide a simpl e 

•. 1ea1 s of ;ivi::-g 0 ou..e fortl ··ith to those r enaini nJ 

i..ductries \7ho desi:·e a code , so s to clear t'-le dec1

{ 

fo r adJ'!lin is t r · tion of anrJ ovcc codes. 

Fe r 71:1lar d L. Thor -o 
T 

.APPENDIX IX 

.A.ugust 6, 1934 

To : Col . G. A. Lynch 

From: Robert K. Straus 

Subject: Completion of Code Making 

'In accordance with your r equest for inforr:1ation as to the 

progr ess of the drive to complete code making by August 10 , I beg to 

submit the foll owing tabulation: 

rd 

r-4 I r-4 r-i 

r-4 ,.0 \..0 !"""'\ 

rg ·rl rd Ul s::: 0 (}) 0 ~ . I +' s::: rl 0 (}) s::: Cll 0 H +' +' H 

r~ ·rl cJ .g r.!'J 0 r-4 I r-4 2b H ·rl p... cj (}) 0 rl Q) ·rl (}) H m ::l S:::+> rdrd rd H Cr-1 ............ oP=i,..-.... 0 ell ,..-.... mrd +>rd,.O . ,..-; (]) +' 0 ·rl s::: I ·rl 0 Q) Q) Ul cj Q) 0 Ul '-" 0 ·rl (}) 0 (]) Q)C Ulrl M Q) C;) Q) •rl rJl 0 rcJ r) rn rd Q) s:: ~n:i..-i s::: ,..-; w p:j,.-; ·rl ·rl ,..-; Q) +' ::l rd H rJl 0 ..::t ~ s:: c8 S::+' 0 v '-" 0 CJ1 d·- HCr-1 ftO ..c. 0 « ftO •rl p~ rd 0 cJ rd ::l cU ·rl rl +' OS::+> P=l +' +' •rl +' s:: s:: s::: s:: rJl 0UJQ) +' 0 0 H Q) rd rJl > Ul Ul o rn rn rn (J) rd m I ·rl (}) ~ 0 ·rl - Q) ·rl ~C:: rn ~ ['<'\ p:; >., ·rl r-f ·rl 

~ ~ ~:J ,..-; ·rl ~ rl Q) ?. ::l 0 r. H ,.0 ,..-; ··0 ·rl rd ,..-; rdrdg~ Q) r-4rd Cll > \..0 +' ~rdQ.O rd 0 ') I ! v r-4 [,J +' s:: cU I) ,..-; H Ul p~ s:: +> •rl s::: 0 ::l .g~ ~~ 8 ~ l ~ s:: ~ Q) 0 ·rl (}) 0 Q) H 0 0 Q) ::l Q) ,.0 0 ~ §~ ~ 0 R '-I 0 41 H ;:l <!l • !I! +' :.- H ~ p~ Q) Z+> H4l R CllCr-1 8 

I 11 2 0 23 0 22 0 0 1 36 

II 11 7 !'::; 

u 1 0 0 0 1 0 24 

III 18 9 0 5 1 0 4 0 0 32 

IV 3 3 4 4 0 0 3 0 1 14 

v 7 1 4 5 2 0 2 1 0 17 1 

VI 21 6 0 59 0 0 59 ~ 0 0 86 

VII 2 3 2 0 l 0 0 0 0 0 7 

' tal~ 73 31 15 97 i 3 22 68 2 2 216 

1/ In this Division there are 23 Service Codes in addition, which wi ll be 

h~d~ed under Executive Orders 

2 / Of comment on Division Report annexed 

9631) 
- 5 -

You -;ill note hat 11 co des ·-,il bt d.isyJosed of b uPUst 10 . balance 

1 of 97 coc"es 1ill be le.1. t on tru t da e . Of hese 97 no action has been ta!:en 

of 32 i~ :Ji··i ion I enC' L p· tLe ret n of t .e d.r1 ~ is ra or. ~his l':i:'01.:'l in-

.' clu-- es ;\J:t .. :rn.cite Shiu-Jins and Pub ic Utility cod .. s . In addition , no decisio ~~s bee~ reached on 59 codes ·}icn are cba~ue to Division I . In every 

one of t1ese cases a l 0ttcr has been sent to t he I ndustry enclosing a cow 

of 81inist rati e Order X-El but in most of hese cases, the industries 

ha ·e not re·Jlied. In the fe· · c:-.se ""~ere tncy lave reulied, they !wve indic'lted t!k:.t tt.cy ~7ill not ao....,l- for co a.ificn. ion under X-61 since tney cannot secm·e trade ractice ~J rovis iom. at t:.e same time _from the • I have 

instn:_cteci_ ~ivision ·-I to warn all of these industries ti1at if the:· ~o not 

apnl:- u:1c".er X-El fo r coa.ifi c:-ttio n b~ U'il't 10, it nay e necessco.r·r to i -

ve stigate labor conn i tions in ~1e se i :1dus tries li h an eve to inoo sing a 

code unde r Pa r agra:_oi.1 3-D of i~I.RA . I have had seve al conversations '7i th 

officials of the Depart11ent of A:'riculture, including Under-Secretar•r Tugr·•ell , 

and I •. a a told t em that this '?ill probably be nece s.;;ary. They do not 

object to our going ahead on t his basis, and indeJ d they added thcot thevr 

see no reason 11h~r an inci.ustr r should expe ct to receive trade practice provisions at t .e same time as they r e ce ive labor urovisions. I do not reconr.end , 

houeveT, t:at action be trucen m~ed iatel- on Au7Ust 10 ryith reference to 

these ind~stries in Division VI . It would seem to me preferable that the 

Administr~tor should mruce a statement, after conference 1ith the Secretary 

of Ar-riculture, g iving these industries some twenty days more (up to 

Seute be r 1) in 1hich to apply under X-61, but warning them that if the· 

have not applied by Sep tember 1, investigation of labor conditions in these 

industLies ill start im~ed iately . 

- f ue except the 81 codes 1hic! have been held up because of the special 

si uations ~e scribed above uhich exist with reference to hem , and if e 

except the 23 co de s w ich ha1e been transferred to Division 7 as Service 

Codes, ~r_c",_ to uhich the Executive Orders apply, some 18 industries onl~ 7ill 

be left on ut=."'.J.st 10 which must be codified. These 1ill be reduced, I arJ 

sure, it ~1 n a fe,-· de.ys at er u~s t lC' . 

t ~"-is ~"Jo int I Tiish to call attention to the situation which e:::-ists 

ith ~efeTence to sunulemcntal codes. Code Record re ~o rted on A~1st 3 that 

141 su'!J:_Jle .. e:'1tal co de s a ait'ng apuroval . In u. judo en , it vms ·1ot the 

Ad:n i ·_istTato r's intention to include these in the dri e o complete code 

making. : hese industries are alreaGy codified in that they are o~erating 

under l e.' or Jrovisions of basic codes. If the Administrator wished to cease 

a!Jproving su1):1lenental codes as of AUocrust 10, he could do so without inflict in,:· a· :r injury on labor sii1ce the e -p lo~rees of these industries a re 

alreac"'..~r thoroU€hly n rotected unde r codes. 

I oul0.. lilce to call a tention to the status of Division II. As of 

ugust 10 , it ill have onl one code a aiting disposi ion, and it is 

p robrble that this industry ~ill be a ca didate for a nrescribed code, since 

it ~:.s been un•illing to come to an a g reeMent . I think that much credit is 

due i.ir. --.eal 7 oster for t is excellent r eco rd. The efficiency and thoroughness 1:.t. ·:hich he has coo:rereted •:rith me in this drive to complete code 

makin,... ·r-.s · :1deed been gratifying. 

9630 

Robert K. Straus, Chairman, 

Commi tee on the Comnletion 

of Code Llrucing. 
-51-

.APPEND IX X . · 

Tentative Ou line 

·I . 

.A . BASIC CODE (X-61) ' : 

I • CODE- ..1.AKING AS FIRST PHASE OF NRA. 

A. P eri od of intens e activity 

B. The Code-making p roce ss 

1. Au hori y 

2. Objec t ivPs 

(a) In ustry urged to t~e initiative 

(b) Major Industries givr?n first att ention 

3 . ProceG.\lre 

(a) NRA Bulletin #2 (Basic Codes of Fair Compe tition) 

C. In&ustry sn onsor ed 3 (a) Co dPS 

1. ·umber submi t t ed and apT'roved to 7/1/34 

(a) Maj or Indust ri es (over 50 , 000 employ ee ~) 

(b) Minor Indust ri es (l e ss han ~C OO employees) 

(c) Service Trade s 

2. rumb er pending as of 7/1/34 

D. .Agr eements under 4 (a) 

1. Promulga tion of PRA. 

(a) Efr'e ct on Code-making 

E. Impo s ed Codes 

1 . Po'.7e rs of President under 3 (d) and 7 (c) 

2. E):t ent u s ed 

( a ) Impos ed Code Amendments 

(L 1 Cot t on Garment (36 Hour maximum work week) 

( 2 ) Other inst nc s 

II. FACTORS LEADI G TO CHANGE IN POLICY 

A. Code-mak ing n roblem3 

B. Most of industry codified 

1. Small groups left mainly 

C. Need for concentration on other problems 

1 . Administration of approved codes 

2. Clamor for compliance and enforcement 

III . PLAN. FOR COMPLETION OF CODE-MAKING 

A. General Theory 

1 . Expeditious method of codifying remaining uncodified trades 

and industries de siring Codes 

2. · Fre e l\TR.A. from initial codification of indus tri Ps for adr.linistration of apuroved codes 

3 . Relieve small er industrie s of expenditure of timP and mo ney 

involved irr the adoption and administration of an indivi du al 

Code. 

B. Steps t aken to carry out plan. 

9630 

1 . Administrative )rder No . X-61 

2 . 

3. 

It 

It 

11 

It 

11 X-62 

11 X-63 
4. Of~ice Or 6 .r Ko . 100 

5 . Adr, ini s l' "' i ve r G.e r o . X-84 

C. 1fp licp ion 

l . Inuu tri~s PXce~ted 

D. O·JtionCil MC hods of codific.., ion availa.ble 

l . By appl ication for the asic Code 

2 . By apDl ic;.• ion for consolili.e ion r•i th apuroved code for 

kind ed r ade or industry 

E. 'i 1"1e limi a ion on apulicc- ions 

F. Procecur e for handline a plica ions 

l . Truly r epr esen ative body of he r ede or indus~ry must 

apT'ly 

2 . ot ice and hearing 

• App roval of applicetions 

(a) Indus ri es employing l ess than 50 ,000 persons 

(b) All other tr~des or indus ri e s 

4 . Commi t ee for o l e ion of codP- making 

(a) rune ions 

(l) unervise execution of plan 

IT, .AD· .:I ISTR;~T N OF PLAN 

A. General NRA CodP Authority 

l . embers and how appointed 

2 . Po ··ers and d.u ties · 

3 . Use for pu po ses o her than administration of basic code . 

( a) Cotto~ Garment Industry Code 

(b) RetRil Solid Fuel Code 

(c) 0 her cocl.es 

4 . ~uestio ed l egali ty of funct ions 

V. ACTUAL OPERATION OF ~LAN 

A. Nunber of pu lic tions for Basic C?de 

1 . Tho s a ap·•roved and di sa p roved 

B. fumber of Applica ionG for Consolida ion 

l . Thos~ ap~ oved and disapproved 

2. One joint AAA-liRA Code consolidation 

(R) Terminal Gr ain Elevato r Indus ry Placed under Grain 

Exch:mge s Code 

C. Deviations and ·:odific.ations Desired by Indus ry 

D. Co de- mo 1 ing Con in~ed 

VI • DEP AdTURE FRO PLAN 

-· 

9630 

Acl.u1inis r a ive Order ·o . X-89 (Basi Code fo r Grocery Manu- · 

fac uring Indus ries) 

l • 1: ai n pur-eo s e s : 

(a) To f acil i a e the Drogram ou l .ned in Adminis r ative 

Or a.e:r :o . X-61 

(b) To br ing ciif_'erent ind.ustri es engHgecl in manufacture of 

food and gro cery u roduc s , to gr eates extent poscible , 

uncler comparablP. code p rovisions 
- 53-

VII. CONCLUSIONS 

A. D~d Plan A complish he Desired ObjectivAsr 

B. ifas Plan Practical? 

C. Would Better Results Have Followe& Earli8r ~doption of Plan? 

D. Was Type of Notice Used Suffici8nt7 

E. Did the Act Contemplate that Groups Could be Codified in 

Such Manner? 

F . Delegation and Redelegation of Fov1er, 

9630# 

I 

I 

I 

I 


' , .... 
1TO"II ,.00111 

u. s. National recovcrv administration . 

no . 33 W ' ork materials. -

v DATE ISSUED TO ·-

7 

7 

/ no . 33 

/ • R 

-

l7 ..,.._. 

7 

1,7/ 

-