Business Library 

CLASS _____ _ 

BOOK ____________ _ 

DOC. ltOOtll 


OFFICE OF NATIONAL RECOVERY ADMINISTRATION 

DIVISION OF REVIEW 

HISTORY OF THE COMPLIANCE DIVISION 

By 

W. M. Galvin 

J. J. Reinstein 

D. Y. Campbell 

WORK MATERIALS NO. 85 

MARCH, 1936 
. BOUN 

By W. P. A~ 

tfAR2 9 
9861 

OFFICE Of NATIOl:AL RECOV'".c:RY ADiHNIST&I.TION 

DIVISION O:B, REVIEW 

HISTORY OF THE Cm.fi'LIANCE DIVISION 

W. M. Galvin 

J. J. Reinstein 

D. Y. Campbell 

MARCH , 1936 
. . .. 

" • 
Chapter I. 

Sec . 1. 

Sec . 2 . 

Chapter I I. 

Sec . 1. 

Sec. 2 . 

COJPE ~r s 

P_-L T I - Il'fr.:.tO.Ji..CTION 

·rhe Natur e of tne Co111plla c e Pro bl ew 

Backgr ound of tne passage of the !'HRA . ............. . 

Scope of co :1p lia n ce wor k ................ .... . .... .. . 

Manne r of A_pproach . . . . . . . . . . . . . . . . . . ..... . . ........ . 

The underl y ing theori us of the compliPnce system 

The establishme nt of a n a&ninistre tive oro cedur e 

PART II - GOVER.NiviENT.AL O.dGAYIZATION ArJD .!?30CEDURE 

PCJ.P-:e 

1 

1 

1 

5 

5 

8 

Chapter III. The Administrative Se ttlement of Code Viola tions 11 

.>: Sec • 1. 

Sec. 2. 

Se c. 3 . 

Sec. 4 . 

Sec. o . 

Se c. 6 . 

Se c. 7 . 

Sec. 8. 

Chapt e r IV. 

Se c. 1. 

Sec . 2 . 

Sec . 3 . 

Sec. 4 . 

Se c. 5. 

Chapter V. 

9861 

Sec. 1. 

Sec. 2 . 

Sec. l 3 . 

Sec. 4 . 

Sec. 5. 

Sec. 6 . 

Sec. 7 . 

Sec. 8 . 

Se c. 9 . 

The n e ed fo r corr e cting vio l c:. tions by administrative measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 

Source of authority fo r the administra t i v e 

settl ement of comp l aints... .... ... . ......... . ....... 12 

The function of the Compliance Division to e.djust 

comp l a ints. • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 

Definition of ad. jus t ;nen t. • . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 

Purpose of adjustment........ . .. ..................... 15 

Evolution of an a djustment po licy . ......... ... . ... ... 16 

Tne development of st&nda rd s of adju s tment . ...... .... 22 

Instr uctions issued to t he f i eld offices ... . ... . . .... 24 

The Orig in an~ Develo9ment of ~ie d Offi ces ..•... .. ... 30 

The e stab lishment ~ t eE1_p orar7 of:!:'icos....... . ....... 30 

Int l orgaclza tion - ea rly velo men t .. .......... 32 

Development of inter nal organ i zation under the 

St c. te Of fic e sy stem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 

Later dev el opment u nder the St a te Office ~r st em • . . . . L10 

Fina l ~e :L pme n t of or r;e.ni zat ion under the 

Reg ional Offi c e sy st em .. . ... . ........... ............ 43 

Cornp l iance Procedur e L1 :B'i e ld Off ic es ................. . 

Complaints, the b a sis of procedur e ••. ....... . ........ 

Dev elopment of c-~ n ew coin_? liance procedure ....... . ... . 

The development of the us e of Fiel d Adjusters ....... . 

The d ir ection and sup ervisi on of ] i eld Adjust e rs ...• 

Technique of inv esti g a tion . .. .. . ... . .. .............. . 

The t e chnique of a~ ju.st nent by concilia tory measures. 

Non-disclosur e of t he sour c e of compl a ints .......... . 

Hear 1ngs by Loca l c:.n~ Sta t e Adjustment Boa rds ....... . 

Compror.1ising and dro-p:.:J ing of ca ses ..... ........... .. . 

-ii49 

49 

62 

69 

73 

82 

93 

98 

102 

108 
' ' . . . . . . 

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Ci1a,p t e r VI. Cor:Dli aJlce Divinio'1 1d Jee;:iol'la l Offices... . .......... 117 

Se c. 

Sec . 

Sec . 

Sec . 

Sec . 

Se c. 

Sec . 

Se c. 

Sec . 

l. 

2 . 

,," , 

4 . 

5. 

6 . 

7. 

8. 

9 . 

Develop1n1 . .m t of int c rn:-' 1 or. ni-~ation. ................ 117 

Gen e r al a~pe ct s of in si.·::1 i a d.is9l ay h a r e:'lovn.l...... L::.l 

Pa t ion;~ l :~ bo r Boa rd ·· s e s. . . . . . . . . . . . . . . . . . . . . . . . . . . 125 

The .~. :). tioN l Comolianc <:. ] oa ro ·· nd its successors..... 126 

Notice of 1earing s.. ......... . .... . . . . . . . . . . . . . . . . . . . 1 28 

Procedur e at ne rings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 

Evidenc e ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 

Appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 

Dev e lopment of e:malys~s and r ev i e\v proc edure before 

hearings-- A a lysis Er nch ........... ....... .. ..... 132 

Se c.lO. Reference of cases for litifa tion •............... . ... 139 

Sec.ll. Contribution ~ section ...... , .................. ...... . 146 

PART I I I - OUTSTANDING ?RO.dLEMS 01? THE CO!•,iPLI.A.i'JCE DIVIS ION 

ChC3:p t e r VII. Th e Me thod of Handling COm'J!l B L1 ts ................... . 149 

Sec . l. 

Sec . 2. 

Sec. 3. 

Sec. 4 . 

Sec. 5 . 

The complaints basis of proceciure-l ab or viola tions ... 

Disacivent ages of and ob j e ctions to the complaints 

rs t em ....... o o ••••••••••••• • • ••••• •• •••••• ••••••••• 

Pra ctical difficulti es in us e of co ~_Jla in ts s:;rstem ••• 

iviass comp liance as a })rop ose0 solut i on ..... o ••••••••• 

Mechanics of t he mass complirnce systeo .. o ••••••••••• 

PA.RT IV - SUivL.ARY 

Chapter VIII. Statistical Sm!lme?:rJ of the Activity of the COJ11.-

149 

149 

152 

155 

158 

pliu ..nce Divis ion................................... 161 

.APPEi·JDICES -----

These appendice s a r " not here l~e·_1 ro ducec:i except A-17, A-18, and 

A-32. The others are in N".rt.A files und.er t he cap tio._ nr RA Studies 

Special Exhibi ts 11 - ~-i ork Materials ~- . 85 . 

Appendix I. NRA State Off ice Comp l a i nt Statistics ................ 237 

List of t ables 

Appendix II. Exhibits. 

9861 

A-1. Wm . H. Davis, 1

1J:ld_,."'- Plans for Code Compliance ll 

(December 5 , 1S33). 

A-2. Releas e l:Jo. 1847 

A-3. Le tt e r from A. J. Al tuw er to Counsel :for Complic.nc e 

Division ~e ch 26, 1935 ) 

A-4. 11Regula tions f or the Adjustment by District Compliance 

Directors of Com}1eints of Code Viola t ionsll 

(October 19 , 1933) 

-iii-

A- 5 . "J!'or.11 to be ts ed as mo(Jt:l s 'Jy District Co11pliance 

Dir evtor in CO !T8S._J 011U.'' .t..:~ ' 0'1 vOl p l uintr; ll 

( cto e r l , 1933) 

A-6 . Offic e Or de1· •:10 

A-7 . Lia ison Circulnr 75 

A- 8 . Office Orde r 92 

A-9 . Adm inistrator ' s tt r < 9~ oin ting Dis t rict Comp li ance 

Dir ectors (Octobe r 19 , 90~ ) 

A-10. Offic e Orde r 33 

A-ll. Com_pliance Di vi sian i·!e:-!a r and'llr.l No. 4 

A-12 . Office Order 85 

A-13 . Oifice Memo r andum 1 80 

A-14 . Le tt e r from John Swop e, Cnief, Field B:::·anch to State 

Comp liance Lir e ctors (June 2 , 1934) 

A-15. Adjusters' report form and. instructions 

A-16 . Office Orde r 74 

A-17. Tabl e of c:.:'..ses r eferr ed to StC).te Adjustment :Ooards..... 249 

A-18. Sta tistics on cases hand.l ed. by State Ad.justment 

Boarcis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 

A-19. Exam~ s of summa ri es of com n· oni s e. cases 

A-20. Le tt e r to Fh i lc·. d.e l pl _a Gifice f rom Ch i ef, Coordinating 

Branch (.F ebru.:n,/ 28 , S~-5:5 ) 

A- 21. Lett er fro 1 Corne lius Cochrane to Ha rold Dott e rer 

r e Servic e Tracies compl e;.i nts ( Sep t ernber 6 , 1934 ) 

A- 22. Com~9 l i anc e Division Memorand.urn No. l 

A-23. Comp lia n ce Division t.I eHl or anO. um No . 24 

A-24. Office Orde r 45 

A- 25. Office Orcior 90 

A-26. Offic e Order 79 

A-27. Office Or cie r 105 

A-28 . Office t.Lemo r anciu;a 309 

9861 -iv-

A- 29 . Office liemo r a.ndum 305 

A-30 . I emo r andum f rom Co 'tt?l iu:1cc C:d1d Enforc e:11en t Director to 

Chief, Comp lia .nce Division (DGc ';.1 be1· 8 , ~4) 

A- 31. 'Aeruorancium f r ot 1 . J . _ · < rtin t o h"e rton ~ m'"'r son, Regional 

Director ~u J 1, 1935 ) 

A-32. St a tistica l table s on cPser. r ef e rr ed to .rtegional 

Offices .... -......... .. ... . ................ . .. . ........ 251 

A-33. Letter f ror:J John Swope , Chief, Field Branch t o Sta te 

Compliance Directors (Ap ril 27, 1 934 ) 

A-34. Memorandum of meeting 11 cld in offi c e of A. G. i·AcKnight , 

dir e ctor of Litigation on April 3 , 193-1 (? rom files of 

Counsel to Comp lia nce Divisi on) 

A- 35 . i moranC.um from A. G. ~ic_(ni ht to Blaclmell Smith 

(April 23 , 1934) 

A-36. Compliance Division l·:iemor andum of June 4 , 1934 re 

Contributions Section 

Appendix III. Office Manua l ( L:lClud. ing a ll Executive a nd Administrative Orders) 

Appendix IV. Field Le tters 

Appendix V. lvia ss CO!ilpliance 

A. Boot and Shoe survey 

B. iJiiscella n eous r e·oorts f 1· om Sta t e offices 

S861 - v-
... 
- 1-

? .P •. tti' I 

I HTROD CTI OI 

Ch8Dt e r I - T. e 1 nt·.J.r e of the Comp l"i anc e Probl em 

S ; cti on 1 - B~ ::z. und of t ' . e -c.•.,_SS8P.;C of Th e J::~tion l Industri ;:tl 

co f' r y _'ct . I t i~ famili ur ld s tor· lu~t in t h e t l1rec and one-th ird 

Y•.krs int e rvening b e t ICt.' n t ' e s t ock mnr Ke t c r : sh of Oc 'Gob e r, 1929 and 

:f.arc' . 1933 , the country had en t c r Pd i nto n. v a s t econo,nic and finnnci c> l 

c r i i • Vh il e not wi thou.t pr e c edent , t he si t ua t i on was dir e , l.nd far -

r e a c · in~ ts ef~e cts . 

Al mo st. immedi a t e l y fo llo•.v i ns ni s i ngugur a tion on i,1arch 4 , 19 33 , t he 

Pre si den t · c ted t o qu i e t t !1e ys ri a Jf t he country". For t h e first t i me 

in h i c to ry t he Pre i dent made use of tnc r ndio to t rJ.l k info r mally with 

the u eopl e . Tl e irrrpo rt:m c e of t n is sta t e of circumsta.1.1c c s a.n d of t !li s 

cours e o f a etio.n to our s-1oj e c t , li e t. n ot s o muc l:i in i t s p ol i ti CA.l a spects 

a s in t he fC~ c t th,, t t l rougl t }li s medium t h e r e was welded tog e t ne r · quickly 

and e f fe ctivel y a tr-:>me:-C: ouG 'Uld forc e f ul r.mplic op i n ion . It was in t his 

almost unbeli evab:'.. e uni ..: ica t i on of 1ub lic SUJnort t h ::; t the Ne.tiona l Industri a l Re c ove r-; Act , ::tnd t ne r enai nde r of t he Re cove ry u rog r am , h a d 

its founda tion . 

'It wa s in this 8 tmo sphe r e o f patri otic f e rvo r, knowing l i t t l e o f 

p a rty lines an d t he struggl e of Cc>Di tal ::, . d l abor , and bo r n c:1i e f l y cf 

f 8ar of e conomic c:e str u c tion , tha t t he i~ation l Industri a l Re cove r y Act 

b e c arne a l aw and t he Pre sident ' s Ree oym nt Agr e ement <md t he codific a tion of indus t r y YJ e r e begun . 

Thi s t empe r of the nu.o l i c, 1-ab o :.: a n·o indu~try , Md the 5en e r a l 

ci rcumst L>.1Ce s un~ouncl in g t he p&sse.ge o f t '1e l e.w c annot be ov e r eiiiDh a -

si zed in i rrt?ort anc e . It w·.1.s t h r ough these means tha t it was ss e 

to edl.:.c q,t e the ent j r e count r y to ;:!_ tJrog r am o f na tion a l i!}d' 'stri a l 

r egul a tion 2.nd co op ::~ tion . On t h e ot ne r h an d , as busine ss b egan to 

i :np rov e ,..,nd t D.i s t mDe r cool ed , "':mo l i c sun'JOrt waned a ad nubli c ou inion 

suffe r ed a r eaction , s o t nat dur i 1g the l ns t f ew mon tns of HRA ma ny 

indivi ciua l s r egarde d t e n rog r a:n ~ onD r c s sive and a de t e r r en t to t h e 

c ountry ' s r e t"...lr n t o -:Jro s-ne :rity . 

, 

Tnis unst abl e b .q·si s of puo lic o:J1n1on corn:Jl ica t e d g r e::ttly t n e 

inhe r en tly intric8.te and cor::rp l ex p ro.ul em o f adjus ting ousiness t o t h e 

n eu r egul a t i on by co de s. 

Se cti on 2 -· The scou e of ro li ~1C E: wori,: . ~he wo r k of the ComJl i anc e 

Division i n co:..u1ec t ion with the enf orc e .. !en t of code s of fair corTr.Je ti t ion 

apn r ov ed und er t .he tion l I ndus t ri n.l Rec ov e ry t was de si gn e d to mee t 

an a dmini stra t i v e ~J ro m di.stinc·ive ·i n t h e his t o r y of t he Fede r a l 

Go vernmen t . Un r t. e autho rity of Section 3( a ) of the • c t, co de s we r e 

anp r ov ed e s t eb l 1 s! in6 minimum wage s , ma ximum hours , condi t ions of employment <md s <:.ndnrds of f .i r com::. eti ti v e p r a ctice in 556 industr i es , 

emo r a cing 2 , 500 ,000 emp loye rs nnd gi ving empl oyment to 18 , 600 ,000 

9861 
- 2-

T) e rsons. ( * ) 

The magnitude of t he sco~ e of code s A.nd the c0mpl exi ty of the 

r egul ations which they cont a i ned made- it neC-3 SS;J.r y to develop a new 

administrat ive techni que for securiug com!jli ance with code r e quirements , 

in whicl1 educ a tiona l and. _;Je r suasi ve me tho ds woul d. be p r edominant . 'There 

was sound p r ec.edent for tb.e us e of t h is an oro 2.ch to t h e admi nistrative 

p robl em pre s ent ed b y t h 8 codes. Tile introduction of law requiring significant adjus ~men ts in bus~n ss me t hods r equires the est ablishment of a 

general unde rstandins of t he subst al.iCe a nd purpo se of the law and the 

mo.nne r of its a dministration. In i ~s r eport to Congr e ss in 1889, the 

Interst::1.te Commerc e Co;rrni s sion sta ted: 

"Undoubt edly . tne f irst d~.1.ty of a n a dmi ii istrative office r is to give . 

effec ·t to the l c.w unde r which he ac ts . Much de:;,:Jend:s, howev e r, on the 

manne r in which this is done , 8nd mi sdire ct e d en e rgy me1.y r ende_r a l aw 

nugatory. A fana tical or sens tion l course rar e ly l eads to good results, 

but on the contra ry., u su a lly n rovo kes an t agonism, and often t ends to de-

: fi arl"ce of the l aw it s.elf. 

" W'hen a law · es t~ g r eat b;J.SLl c ss' int e r ests int ende d to be gove rne d b y its provisions throu5bout t ile whol e extei1t ·of a va st country 

with many div erse ch.?.ract e ristics, gr eat c a re is r equired to so acL'1linister 

the law that it shall b e l~ pe ct ecl and ob eyed. In a matter of such magnitude B.Ild import.ance ... many ·othe r t h in.gs are r equired besides nrose .... 

cutions for. vd.olatiori s. · Care ful int e r oretations of t ne p rovisionP.· of t he 

l aw, correct kllowledge o'f the subj ec t s to which it apnlies, and of any 

distinction·s in co:n.ditions t hat may IT10dify its apnlica tion, are n e ce.ssary, 

in: .ord8 r t ha.t ·it may be int elligentlJ-' app li ed . A reasonabl e time was 

als o r e quired to enabl e busi ne ss int er ests gene r a lly to become f amil t·arized with the chang ed me thods unde r the l aw · and to a dj u st their 

mode s of busine ss to ' the. new r e quirements. 

"It was deemed a · matter of -p rim:'~. y i mp ortanc e to bring the int e r ests 

affec t e d into h armon.ious rel.ations to t he law, and to understand that, 

while it revolutionizes rt C~ n me t ho ds, it is some thing more than a me rely punitive ·sta tute, definig c r i mes and p rovi ding for t heir puni shmen t, 

and tha t its ultima.t e purpose is t he g ene r al tsoo d of the country····.· 

This may i nvolve ha ~ is some times CP..ll ecl an · educ a tional p rocess in dealing with intellig ent men, no t e ss en ti a lly b a d or en5a6ed in crimina l pursuits, ·but whose f a.ul t s we r e i n !TIAJ.1Y respe cts wr ')ng me t nods i n tile conduct 

of a l egitimat e busi ne s s , in ·vvhich t hey had too often been taught t he 

success li1i ght b e r·ega r ded as jus ti Tir~g t he me thods ·emnloyed. A standard 

of ri ght r'.l1cL Wl~ong as well as of l egal d.uty was to be s e t u-p , a nd, conformit;r ·l;o t h is standard ind d, if -p o ssi -ol e , by the conviction tha t 

(*) Estima tes are of the statistica l s e ction, ~~AA Division of Review 

and aTe based on mo n t hly emp loyment .reports of the Bure au of 

Foreign and Domestic Commerc e , d e riv e d in turn f rom the Jureau 

of Lnb or St a ti sties and othe r source s. 

9861 
tneii true inc e r ,sts would b , bctt '1romoted . 11 (*) 

It would have ·Je n no G onl.r ~ mL1i strn ti vcl;v unwi c , but nrac tic--

a lly im··10 s i bl e to h. v br oub L e ;; c . CPI.s e of infrnc tiO!l o n. code revision intCill -c!1 led r a l CourG' . 

If the1·e was pr "' cedC'nt for the gel eral apryroac t o the n robl cm of 

COdC e1 fore .ment , the r e W.1.S littl e in t he rJr eviOUS CXI)L,ri '' nC r~ Of gov e rnmen t a l ngertc i e or in the Act W11 id1 coul d e rvc as a guide t o t llo rne t hods 

whic}l mi t;ht b e fo llowed . The Act provide me thods of enforc ement through 

tne courts by injunction EUd by crLnin·· l u c tion in t h8 District Courts 

of tht: United Staccs. Coda scandar ds we r e also m:J.de unfair me t hod. of 

com•)e tit ion wi tnin t ne me::1.ning of t he Federal Tr a de Commission Ac t and 

enforc ertol o by the Comni ssion t h rough c _, s e and desist orde rs. Nei t ho r 

of tl e~o me t hods offe r ed a soluti on to t he· n r actical ry robl em of corr ec ting a mass of mi 1 or violations, many of t hem unintenti on ,q,l. The -o rocedure followed by the Fede ral 71 r adc Corrurti ssion and othe r semi-judic i al 

bodi es cou l d not be followe d by ~TRA , which l .qdke d thei r l egal p owe r s 

(in particul ar , the powe r to com,Je l the submissi on of evi denc e and to 

issue orders enforc e ab l e in the Court. s ). 

Furthe rmore, t!le rJroc e ciu.re of t he Fede r a l r.l1rade Cot:-J.ni ssion was 

ada-oted to the SDeci a li zed. hru: c ling of individua l comp l c> ints . Unde r its 

act the ComrLission was g iven the povv e r to r e strain a cts of unf a ir com-

-pe tition. It was , howev e r, l e f t to the Commi ssion in particul a r case s 

to d e cide whether c e rta in p r a ctice s constitut ed unf a ir competi tion, aft e r 

a usually thorous h - going investit;a tion . !.'Teed.less to say , the work of the 

Corruni ssion t encLed to f a l l into c e rta in well-e s t ab lished c a t ego ri es. 

In contras t to t:Clis tile co de s u.n de:ttook to spe cify in odv a nce wha t 

p a rticul a r a.c ·cs we r e ne r s o u..'1f a ir -o r acti c e s . The list of p rohi bit ed 

acts was not only i 1lfl e xi b l e , but WA.s l r·r .ge and v a ri ed . T'ni s enl arged 

scope o f ~e t ask , a t l east i ns ofar a s t r qde p r a ctice viol a tions we r e 

conc e r ned , el ed to multi•1l y tne difficulti e s of administra tion and 

enforc ement 1e ause of its v e ry co.n·plexi t y . Ce rt a i nl y , t he pro-bl ems of 

educ a ti on w·:r c int ensifi ed , and. ·oe c aus e of t !1e additional requirements · 

placed on .:-·:)·just::-tent agencies a STJ e ci a.lized , int ensiv e handling of ev en 

each t .r1)e o:' vi ol P ti on was vi r tua lly preclude d • 

.. 

In the c ase of l C'lbor comoli a nc e t :O.e expe ri enc e s of s t a te l abo r 

d epartme11 t s we r e s omewha t more a.::.1a.log ous . Labor r cgul q_ t ions, both unde r 

stat a l.".l•v s a.nd t he code s , f ell into f airly definite cl a ss e s a nd t h e refore a. sir11il e>.ri t y i n Drobl ems of ··; roc edur e was 1Jresent. T'nere was , howeve r, in tl.1e codes t he ? . ddi ti onal e l ement of considering l n.bo r -o rovi sions 

as an i te:·n in f a ir om:~ ti io ~1 . i'"r1 i s n a turally su·o e rimp o s ed the r equirement of coordination of loc a l wi th na ti ona l Jrobl ems , which again s e rv ed 

to magnify the t ask . 

( *) T1ird E.e·9ort of t h e Int e rst n t e Comme rc e Commi ssion, Nov ember 30 , 

1889 , pp . 0~- 5 

9861 
- 4-

As a r e sult of the limitations on t he a"?~licability of the experiences derivecl in the a drninistration of t he se othe r laws and regulations, the clevelonment of n ew ad.ministrati ve me t hods for the lffi.A. codes 

be came essential."-
- 5-

Chn.T) t r II - Mrnn ' r of AT)T)ronch 

ction 1 - Th-· und ·· lyinP t h or ~ of th omT)l nce syst em . The 

Drelimi nRn' adm ~t~~ti--; -- ~t ~; ·ta~en·i~ the enfo rcement of ~Cod ~ 

~Je re ba ed 1..-ryo n t "o Dr emL s . Fir t, tha t ther e would b e a subs t c.ntiCl l 

number of v i olation , mo t of wnich could be corr ected by concili a t ory 

a nd educa ti -:: na l method ; and . econd , t hot nublic OD inion both wi thin 

indu. tries and on the ua rt of the general nuol ic could be r e li ed on to 

upno rt 1~ t ande r 0s. It wa~ cont cmDl~ted tbat the p1.mitivc · 

provisi ons of t he Act would be i nvoked only whe r e these methods f a iled . (* ) 

Th is nrogr am e~ne d directly out of thc .Administr a ti on ' s exnerience 

with the Pre i dent ' s eemp loyment Agre ement, narticula rly in its use 

of insi gnia for the T)UrD Ose of distinguishing indus try memb e r s 

comulying with a nd sunncrting the ~eemnlcymen t Progr am. 

While previ nus exnerienc e wi th the Re employment Agreement 

furnished a definite ori entati on for t he manne r in which the n robl em 

could be attacked, a f~damenta l auesti on of nolicy immedi a t e ly 

develoDed : To wha t extent shoul d administrative nowers with respect 

to enforcement be vested in I ndus tria l Agencie s ? 

During t he first three mon t hs o~ NF.A 1 s existence, the energies 

f both the NP~ staff and the i ndustry members who came to Washington 

t o urescnt codes were concerned nrima rily with t he formulation of 

standards of fair uracti~e and only to a sma ll ex t ent with their 

administr a ti on . Th~ough the nroc ess of c ode formula ti on and the 

gradual devel onm8nt of administra tive nrovisions in codes , r an the 

concent of 11 in<h1s tr:l a l se lf-go rpmen 11 • Thi~ notion was exnressed 

in c ode f ormulation by the r eauirement t ha t Code s (at l east those 

apnroved D.nq. er Se cti on 3 of the NIRA.) be T) r esented by a repres enta tive 

groun of the indus try memb er s intended. to be bound by the code. 

The aue9 tion which now ur esented itse lf was the manner in which 

indus tri' sh uld na rticiuate· in t he adminis tra tion of the code . 

In orde r to provide for continued e~ esen tion for the industry 

in its rel a· ~ons with :~.A and for CFl rieying ou t of some of the 

adminis trative functione whi.ch · sho·eyed ther.1se lves nece ssary, the 

idea of a "Code Authori ty 11 oeveloned early in the ~Jrocess of code 

formulation. The Code Authority was intended t o be a lega l entity .. 

r epr e sentative of ·the industrv and vested under the code with adminis- . " 

trative nowers a nd planning and r esearch f unctions. The n owers 

V!-sted in these · agenci ef". under t he early codes va ri ed grea tly. An 

Industry Committee est ablished by the original Cotton Textile Code 

had a s its functi ons 011ly planning and t he gathering of statistics. 

Later codes ve s ted in Code Autho riti e s broad nowers of determination 

for the puruose of nutting into effe ct r egul a ti ons for which the code 

(* ) ·Wm. H. Davis , lTationa l Comu liance Director, 11 rrn.A Plans for Code 

Comoliance" (December . 5, 1933) n. 4; Bulletin No. 7, D· 7. 

9861 
- 6-

only specifi ed s t andards. Provisions dealing with enforcement, if 

t hey a.plJeared at E~ ll, '"Je re s i mila rly varie0. . The se c ond code to be 

apnroved , t he Wool Tex tile . Corl.e , Dr qvi de.d. f or 8 .s ystem of mandator y 

a rbitration for t he s ettlement of c omlJl c-.ints of code violcl ti on . The 

Men 1 s Clothi:qg Cod e ( l\l\:u.llb e r 15) no t onl y emoowered t he Code Authority 

to make i nve s tiga tion of 1.:nges of viola tion, but · i mposed upon it 

a po sitive obligation to 0o so. 

By October, 1933, the problem of enfor ce!:lent ·b egan to make 

itself felt in the form of individual instances of code vi ol a tions 

which could not be corrected by concilia tory efforts made in most 

c as es by C.ode Autho rities or. by Deputy Administra tors . Because of 

this fact the establis hment of a do.finite l':)rocedure for the hand ling 

of administrative work ccnnect ed v;i t h enforcement stens b e came 

apnarent. While,· a s we have not ed. 0'J ove , there 1'1as a deve~ on ing

tendency to v~st a~ mini tr tiv e "Jowe r s in Code Authorities, the Act 

itself Dlaced the re snonsibili ty for enforcement n;roceeCl'ings . in the 

hands of th~ . Government 'B.lone by limiting legal r emeo i es t o . the 

Government • . ( *) , . . . 

On November ::::)2, 1933 , Gene r a l Joimson issued a st_a tement of: . 

policy witl1. a view to clarifying the ouestion of re T)On ibilit y for 

enforcement .and defining the nart wl1ich i nd ustry would ulay in code 

administ.ration~ (**) He st2.terl. tl1e . a i in of 'i.B.A as be~ng . to _give to 

Code Authorities the wides t nossible range of self-gove~nment~ 

However, the ultima t e resDonsibility of cocle adm~ni trn. t~on r ested 

with the Government and .. NM ,Jtrould· undertake to supervise code .· 

administration by Code Authorities • . The AdP.iin"is trator seg~ega ted code 

administration into t wo as:oects : one, "normal coce a dministra tion", 

extended to sD;ch functions as Dlannirig, the collection of statistics, 

the rendering of r e:oorts on conc1i tions in the indus try, etc; the,. 

other included educational a nd administrativ·e steps. t aken with a view 

to securing comnliance with code reauirements. · The Administra tor's 

definition of wha t has since c ome to be known as 11 Corrroli a nce 11 may we ll 

be ouoted here for the clarity with which it d is.tinguishes this 

a suect of code a dministration not on1·y from ·normal code a dministrati on but 

also from enforcem~nt, the . ins tituti on of legal· Droceedings to comuel 

compliance with code requirements: 

"(a) The ins truction a nd education ·of those subject to the 

code as to their resuonsibilities thereunder so as to 

anticiuate a n'o avoid comD l a ints of non-c orrmlia nce •. 

(b) The a djustment of c omDlaints · of non-compliance by 

education, f a ir findings of f a cts, a nd the uressure of 

opinion within t he Indus try . 

. ......... . . .... ... ... . 

(* ) See Section ·3(c) of the :N tion ~Y-i~d.~ ~t ~l~l Recovery .Act. See 

a l so Purvi s v. Bazemore, Western Powder Manufact uring Co. v • 

. In t e rsta t e Coal Co., and O·t her cases cited in Office Man:ual, 

Part· V ,' Se'cti'on V, "Juri sdi cti on and Parti es. " 

(**:, Re lease No. 1847 (November 22, 1933 ) 

9861 
-7-

(c ) The adjustm.:;n t of c cmnl a int!=; by a rbitra ti on , conciliation , 

a nd mediation . 

(d) The r end iti on f r eport to the enforce.nent gend of 

g ove rnment ill t hose cases whe r e a ll other 1:1eans hnve failed . 

Such enorts should be based un on adenua t e findings of 

f a ct, 11 ( '!: ) 

Industrie which we re sufficiently we ll organi zed t o hn.ve agreed 

UDon a cod e we r e deemed to b e preuared to u nde rtBke function of 

n or mal code admini tratio~ . In the field of comn linnc e , ho ever, 

indu try w:::. not n r onRred r eaui np-ed to cleal with enforcement nr oblems . 

T~ i function , it wa. dPcl Rr e0 , ''Tould be a.ss1..unect b y .JR.A until such 

time as i ndustr y ,~as orbaniz ed. .to cc:: rry i t out . T!'J.e following urogram 

was lai d do1nn for t he transfe r ·of comnli ance fu:1c t ions from t he . . Gove r runen t to i n0us t r y: 

11As soon as a Cofle Authority i se t un and r eady t o f uncti on, 

i t wi ll USUEl.lly b e we ll enough organizvd t o acl jus t mos t comp l a ints 

of viol.1.tions ·of t he trac'e "J :' <:t~ ~i ce nrovi sions of t he c ode . Such 

compla intQ i nvolve the · hts of one emDloye r agai nst a n othe r 

emo oy r wi thi n t he ··i·ndu s "t:.':"Y . Tr O.Q .. e . ass S'CiCl ti ons a nd other ex isting 

agenci r s of nnustri l . elf-gover nme nt a re we ll suite d to the 

handl L ,g of this t;yne of c oen.>la.int, a lthough , of course , t he public 

i n t e r e t must be ~;El f_;gu roecl. b y genere.l gov e r nmen t a l exe rcise of a 

v e t o. Thi s gove :.~~ntal v e t o' Dowe r i s· the sub s t i t u t e fo r t he 

anti-trust l c:.ws i n ~his ne'IV set- un . In mc s t cC~ses , t he gove r nment 

r epr esent a tive on a Code Authority si t s without vo t e , bu t with a veto . 

"The functi on of se curing c ompl i a nc e with · t he l abor u r ovisi on s 

of c odes p r esen t s a muc h mor e Cl .~. cult :n r oblem of organi za ti on a nd 

a dmi ni s tra ti on . Ve r y f ew indus tries a r e organi zed a t t h i s time 

a l ong lines suitabl e t o a d just men t and f a c t finding in this tyne 

of case . Com,)l a i n t s of vi ol a ti on s of. or . u r ovi si ons s h ould not 

b e r efe r red t o Code Authoriti es ( or a ny agenci e s of indu s tri a l se lfgovernment) unl ess such agenci es hav e a dequa t e l ab or r epresenta tion 

t he r eon. Mos t c odes d o n o t nrovide f or s uch r epresenta ti on. 

"The urobl em of Code Comnlia nc e , b y its ve r y na ture , re quire s 

a r egi ona l s ys t em of f a ct f ind ing and a djus t ment C~ge ncie s annrouri C" t e 

to t he ha ndli ng of l a b or c om;)la ints . ·In or de r t o n r ot e ct the 

i nt e'!'eS t s and right s Of a n emnl oyee ·u.n.de r a COde 1 t he empl oyee mus t 

be f u r n i <>hed with an age ncy c on\, eni ent 'in l oc a ti on e.nd i mna rti a l in 

na ture . The gov e rnment has p rov ided t vq en t y- s i x r egiona l c cmnlia nce 

agenc i es , t o which comula int s of corre vi ~Y ti s may b e r ef e rred wh e r e 

t her e i s no aplJr oved me .. chine r y wi t h in the i ndus try t o handl e such 

c omul a i n t s . 

(* ) Ibid., n . 1 

9P61 
- 8-

11 This system will fi ll t"he blanks in' industrial self-government. 

It will a ct for an i ndustry while the industry i s organizing to 

handle such. comnliPnce uroblems for itse lf; o.r whe re an industry in 

a cert.a in terri t or y ha s no agenci es of industrial self-government; 

or whe re an industry, though organi zed to l1andle . trade practice 

.complc:dnts, . has no machine ry apnrov ed t o handle l a b or c omnlaints; 

or where anp.rov ed machinery J:-.iB.s failed to a dj.ust a comolai n t. 11 (*) 

The original progrc=:m for compli a nce adminis tra tion was followed 

throughout the greater pa rt of the existence of 1~ with little divergence 

·exce:ot upon t wo· points, the cessati on of efforts to organize industry 

for the handling · of l abvr corrrol a ints a nd the attempt m.s.de l a te in the 

develonment of c omoliance administration tc shift the basis for compliance 

work from merely e.cting on corrn l a ints to insne ction. However, although 

new legal instrumenta lities we re devised (such :'ls the methods T)rovided 

for dealing with viola tio!ls cc~rri ng in c onnection with gov e r nmen t 

ccmtr~cts) and new administration agencies were establisl1ed, the 

fundamental apnroach to the uroblem remained the same. ' · 

Section 2 - The establishment of an . administrative nrocedure. It ha.s 

been shown that the. c-;dUic;,ti~n .f'"'i ~c1~~t;:-y crea t ed a vast and nove l 

federal administrative problem. Such prece d ents and guides as did 

exist did not furni s h a strict analogy for a n apnroach to the problem. 

· The . procedure which was established, the r efore, in October, 1933, was in 

a sense in the nature of an ex"Oe ri:nent for dealing with the · problem. (**) 

· · Ina smuch as emnloyees ha d b ee n t aught to compla in to Local 

C·omPliance Boa rds of PRA. violations, and since so much r e lianc e was 

Plac ed on nublic surmort, it was na tura l t ha t the new code corrroliance 

.. procedure was bas ed e n t ire ly on the filing of corrrola ints by emnloyees, 

·. comoeti tors and other s . l1o f a cilities we r e nrovl.d e d in the new 

governmental adjustmeni yct~~ for initiating comp liance a ctivities, since 

the nrocedure was "Oredic~~edr-on the filing of a .. formal com"Olaint which 

had to meet certain r 8quircments as to l egal s uffici e ncy. In this 

r e spect tho procedure r esembl ed tha t of tho Fe de ral Trade Commission, 

. although it has b een shown the proble~s of the l a tte r we re diffe rent. 

There was d ev e loned as the me thod of a dminis t ering the code s the 

" a..djustment 11 of compla ints . By this was meant the bringing a bout of 

conformity to code provisions . It will b e shown in th8 succ eeding chapter 

.that the application of this me t hod cf c ode: rtdminis tration was chang ed 

and modifi ed as the growing exu0 ri enc e i n ga in~ng comnlianc e indica t ed 

the ne ed for stress on fA.rticul a r nhas e s of t he wo rk. 

( *) Ibid., p. 2. 

(** ) The dev e lonment of comn li a nc e nroc cdure i s di Rcusscd in 

Chapt e r V a nd VI, infra. 

9861 
-. -

Generell.J ::m'"'Pldnrc . the '1ti.jt.tstw .:t of ccscs included bo h t~1e idr a 

of i nfor: ln L1c It"· > nt"l.ts f t .Lir obli ··tions :-.1c thw3 ptte .• : 1tlno; 

t o i ns''re f\ ture corn Jl innce, buL "' ;:,O , '.'li t.l1 L1crct. :.in· i11oo r t"nc s 

t i me :JE' :-;eo , th crn-rccti.nn nf 'rst -ri0l: tions by co e ~· tin>; thu 

)' r tic: i. 1 ... ec1 t.11 re· y . I1 la'Jor viol._.,tinns J)' .. ticl.:l::rly '. C1 ' the 

la t te r t r u . 

'-!ere ti1ere v;as 1rEcec. n t . As 01).t l ir eo.. i n a. letter 0f i11 rch ),· , 133::.. 

f r om .:r . A . ._r . Altr .ver- , 0econ•, Ps'-istc-Dt SEcret"'l'.:/ of Le..bor, to the 

Co nsel f r the Co .. pli~nce ~)ivi~ioll , tbe : rrctice 0f obt~inin~, a·~e 

r esti t .tion s f r om via aturs of . 1L1imwn 'N' ··c l r'.''S bee: bcrl1 f'Jllowc( b y 

t he st~ te l quor ( e;c-rtll'1e.!ts for a rn ... ·u,1'be r of ycp l·s. (.,. The ec~ ·n ~..,·es 

of r c,_'l.i r i n ; this form o! .:H~jnstrn r.t \

1

lere s, .. ru.1ec.t -..p ''~;follows : 

11 (1 ) It ne1kes t' e ··io!. a t o r p<::y c;. ·1o:}ey a:lO\ IJ1 t on 

8CC ount of :)PG t vi olr ti ons HiO r )r owo t ly t b an 

if 1C3;'ll ctLm vrcr e co . • nen c ed. 

( 2) It '1olC s 

oi l i t y nf 

ther e are 

v e r t:1e v ic1Rtor 1 s Lep(. t he 1w s si-

·roR c _tion for 02 t vio l e ti on s if 

f 1.t t '.:r e vi o a t 1o::1s. 

( 3) I t ~i ves an o_r)•"lor t u:..ii t ,· t o t "::.e enfor c emen t 

egency to rne1<:e c le·- r t o t •.r viol,·t or t !le fun da-

:-Jent [l l ;Ju T•10se~ of t l:e :an sii1cc it il :'.x tr t s 

t he fc:ct t'·c t t }1E' .-:nv ern.nc;., t i s · ot "'0 mu ch 

i n t erested i n lJ11;_1it iv e mer"?l'..r es tn:i n.o:; t'"le fo rm 

of •-:J r osc c-,_t i o::-1 as it i '3 i n ;:1P.2cLr·; c e rt c- i n ~1a t 

t he pur K'>e o::..' t Le lc. ~' i 3 c .s.rri cr• out . 

11 Al l S1' c essf P.l -c· _nr: i ~tr.-.tor · of s t :- t -::; 1,.,.-, s I c:-m s1.-:.re 

C;jQlllc: r T ee t }'.c·t ~!e r c· . -.1 t i s t l-:p t t:lere i J a :r eat e r 

_J ETc tc~e of il ::;.~: co_ 1ll nce , "J_)o··_: ~~· ~ .? ft e r 2 ll Ne 

mt.•st c. e -enc for t- 1e sFcce ··:sf l o e r e t ion of a l av1. 11 (''~' ) 

At t h i s p-; int i s r e c e l1e( :~w t wo Jr e:nise8 , :-. e r e t of o r e men ti on e d , 

on Vh1 i c:. t he C'Jm_:Jl i c:nc e :l ro F~n W.!' S \)2:->e c-:. , nCJJ:1e l ;y , t :1c. t the r e wou l C.. be 

a. l ar;e i1l'J ·oe r of io~1s 'i' ·.i ch c o1.LlC. be c orr cL; t eCi. b y a Cc ju s t nen t, 

end. t i-1c.t _JU Ol i c ~u •port ,_,oulcc b e n t o t he c?C, ini str e t ion of t h e 

~e . As a ollE ~ t o t he fi r s t ~rem se , t h e e~ t ma j o rity of 

r esl;OnC.ent E ·erE. oe1 i ev ecl t o a ct nithC'U t PilJ' c elib e n : t e int ent t o 

vio l a t e t he leV! .:-n c it WE' S iel t t tl;:·t the r ema i n i n r f e coul c\ be e fect ~' (eFlt wi tl: o1.•.:;h t he le _~ l )r oce s ··e s c~e fin ec: by t l1c Act. 

'I'hi s , of c o--.'.r se , __Jre s-._ ;__,_·l·)ose( t he enf or c eabil i t ;y- 2~1d_ l e:;al sounoness 

of t he c oc es. 

"~' ) In NR..t\. St ucd es Sp eci a l =:,yJlibi t s ~7o k i.i:., t eri a 1s # 77. 

( >.:"' '; Ic'e L m. 

'3 861 
~ 

If the first _} re,aise 1"as a Terec~ isite of ai(/ e(just men t machi::1er~'• 

t he s econC:c "12 s tbe beE rt of the a 6 .. .1L1i tra ti v e SifS te~-:1. . It " 8 s the cre.dle 

f or 1e use of l::?.A i:1 · i _.n i a , ior t ne :ce li2 nce on c o:n1l2in t s a s t h e basis 

of _J r oc ed.ure , anC:. for L1.e re _...-.. i si te o ·.-.tsic.e L1:luence neeCi.eci. for the 

effecti ve 2C.j u s tment of viol: ti.. ons. 

9861 
- llP A::.T I I 

Ch[l.pter III - Th e Ad·:linistrc.tiveS ttleocnt of Coc!.e Violations 

Se_ction 1 - ':2he neecl for correcti·l;J -·iol ".tions 'u:· '".c"'nini~tr~ tive 

neasures. I t is 2. fundaf.'lcLtal co: .c c·--t o-:' nc"'. .ls ~ia1 ~Jr u.J.atio "l'"l <~ i. cl. - ~ 

l ao or le,.~ i:--la t i o:1, ·J;.r ed 021 ~ e e:-:pe::ie:1cc :·~ o L:."'r : o·re rnnc~tal 

a;,_,encies e." £'"~e . L t1:.e c.c''"linir~trc..t on of :1e·; Ja;s o:f ·riG.e and. fc.r-

-r eacl i:1 · r Y}licnt io n , .. r1ic~1 co not rl.e£1.1 ; i t h i!lc.tte:t::., cul'lsic'ered <'.S 

malun per r.c , :.:mt t '1e nuccess:t:u..l o~)el ·.::t t.:.o 1 of t i.1 c sJcatute u :l.. timn.telJ 

cleyenc'.s on J ..~1 e e cluc::>tio:1 o; pcrso:,s af.~cctcc .. by ~t to tlleir 0 0liGC:J--

t ions unde-::- the l c:..··· , 8.: .... •. o:1 t ;1c })re~>Gnco of a s t:~onr: -pu~J l ic 0:9inion 

vori:n.~· 1fo:rce 1e~t . (*) .. :li £' fc.ct K'~:, rcco :;n i~e 0. b~r the Interstate 

Coi'1L1erce Co.r! issior: ir. i ts :.:e·1ort to Co nc;:.~oss i n J.3 :~ . (**) It is 

clearl;y illus trc-·tcc. 'b:: .l~e r~ ·. ~: :..: e·1t I s e::-..Je rie ~'l Ce i:n_ P:::-olli "oi t.ion LD.J 

enforcen€'nt. 

The nost ob•-ious , <.'.nc. _ c~ the ;:n o"'t eJfecti ·e Jet ;·lOcl of 

educc.tion c.n0 C.e7e. opne·1t o-: S'L'-P:Jol't 1Y• t.lle ~!1(' ;J·oc:.. ? of inc.ustr;y 1Jas 

to correc t t he v-iol.:J.tions co:-mi ttec , c:1C. to 'J::i21:~ tl1e en_plo3rers 1 

busi:ness ~oeratio~:.s .r~ o oT"'or.Jit~r :i t h t~'l f' coc'.es. Cm1.:__o ec~ ,_..., i th 

this ... here :1:-.c'. to ~' e tne L'ls :..~ ction of e: r_9 loyers as to the meaning 

or coc"'.e -p rovis io·'ls n.::.1c t~ e e::.:_.JJ.2.imtion Ol- t.l:e 1Jenefi ts to oe C:eri ved 

fro:1 co~TO linn.ce •-ri t h 1e l~i.il': .. ~) j~O::_:j_~c ;J . 

As i C.e f r an fulfilli n.e· t~1e ,.L'll~ a:Je!Y~e:• l neco. C' .. e scri 'Jec". above , t he 

use o:- a s~'" te:1 o: l'~-.lLJ.istJ.T tive ''f'tt l e:Jent of coc~e violat ions n2.s 

dicta t e.0. ~1 ; tilG :0rc.c t. i c r:.l l ii:L~ t.a 'c io~1s ry~ t :1e e::.'l:fo :tce Jen t s:'s tens 

:provic.ec3. o:- tho Act . ( ***) 'l'~1 s st<.'.te:lent is so sel:- ev i cient t hat 

it is haj_~C::l :• nece~sc.r~ :_wre t1w.n to ne11t i o::: t :1at e.:9~a ro~~iuatel ;:,- 100 , 000 

com:9 l 2.i::.1ts o:f coC..P. v iolcti ons ':ere r.oclcet e(. o;_· t he field. offices of 

~H~ Co :T~Il_iD.:rt ce Di7ision. Tl1is fil'}..1.:::e i~ e::cLJ..ni-re o:~ com~J.a nts 

han.C..l e2. o:r Co c .. c A1:.thori ie ~ c-.:1c, co:·. :_)l2 il1ts h<' :· ·i n~· viol a tions of t h e 

Pr esiC.ent 1 s Re e_~) ::.o:ruen ... At;re e:·.1e,1t . Tl1e vo:).:une ol cr.ses '-rould have 

inci.~e.s se f. cons ic e:.~eol:· hvd. the lL .• '\. act i vel ~:r sou-::~:1 t out viol at ions, 

unte:r em: s:rst er: si'.1ilar to 1ass coc:l::.J lic.nce . 

(*) ~}lis ~· L:.e 1.' i. C'.e rl:,-i :'1:~ e18,0l':: o·:· L le r.t'ji.i.E t ' lCTlt 'Ste; , see N:rtA 

Bulletin 1·-o 7 ·) 3 Co.:le Ar' ·ll . . 1. c+· ,~tl' o·~ -~o ~ co·.- 1- ]l·~·nce 11 .;nc u'~e "" · ( a ) - • ' t ' l - ..__ ~ . - .L. )~ V J.. _.l J . J.. I ..:. _ C v - , _L - ...I... _ \,..:_ ~ e 

The nstruct <;> ~l a~ ec .. ucc>tioL :~ t hose 0~ cct tn t he coC:.e as to t he ir 

res:9ons i bil it i es the:..~eunc e:!.~ so as t.o antici:o<'.t e cmC:. avo i ci conol a i nts of 

nonco r:1p lie.i1ce . (b) T_'le <:' f.j-u.st:-:ent o:"' co !:;>l_aints ol noncon:91iance i) ~i 

ec.1ca tion , -!' im ... in_,. .. s of :e.c ts, en( t> .. f o:..~esm_E,e :~ o·o2.nion -:r i thin the 

~c:ust •r - - -.11 

(**) S~ , ? .2. 

(***) Title I, s e ction 3 :9c>.r nc ra:phs ( b ), (c) 1 (f) , prov \~ ec3. res:9ectively 

fo1~ ::_J roceeC:in::;s -J:r the J? ed.eral Trc c.e Co: mi cos io n· unC..e r its org anic act , suits b-· the vsrious Dis trict Attbrn e~s to restrain co de viola tions, and 

·oroseculions of coC.e viol nt i o11s as -J sclemeD..no:.. . The -oenalties Jere :r e- s t:·ic tee. t o transactions in o:..· affec il1C~ i: .. ter s tf".t e or- for e i :_).1 cor:mercc . 
- l2-

Section 2 SauTe e o~ a-J_th ori t -- for t he 2.C:ni·1is tro.tive settlenent of 

coaplaints. No,...rhere i n the Y2.tione.l In d.ust:-.. ial Re cover:- Act is there 

any expresseC'c delec;o.tio ,1 oi' :;: o--'e r to the :.~es 0.ent or ~1 s a:p:9ointed 

asents t o ad1.1 i n ister the va::io ,;_s cocLes of fair co;.1pet i tio:1 , to ~1andle 

co:-1plaints, or ad.just cas es of iol ~io:n , nor i s there an:r stp.tenent 

of re sponsi bility to QO so . 

- However, ,_vi thout enterLY; on a dis c lssi on of the l e,:-;al q_uestions 

involved, it i s su::" : icient to Jcrec t tb.e f unction of 2ll-Jinistering as 

imp lied fro;·1 t he :po,_; e r r_;;rCJ.nteC:. to t he P resicl ent to establisi-: agencies, 

a:ppoil1t per sonnel , · and to :pi'e:scribe tl1.eir (\_,__,_ties and authori t :r (*) and 

also fro;J the practica l nec e~s i ~r o:? n c'J:J. i nist eri nc; t he coC.es once e1ey 

nere approv eD .• 

Under Section 2( ) of the Ac t , (**) the Presi( ent delecat ed this 

f unction T.'i t l1 others to the Ad_ linist:c~ r (***) '7ho issued the recu1ations o~c~ t he ao_just:'1ent ~ CD.se s ( *** *) ant -u.ncler ~-u6se <Erection the 

Com~lio.nce Division ·-ras esta:Jlishe(. and inve steC:_ n i t h the c:tut:' of obtaiT'.ing coop1iance v i t h the various coc:_es anC. the Presi C_ent' s. Reem 1o ~­

ment .~.\ reeraent by the nenbe:L~s of i n us tl~ . (*****) 

-------------------- - ----· 

~ *) National c~us tric::.l Reccv e:r3• .Act, Jli tle I, Se ct io n 2 (a ) :p rov 1 o.es as 

fol10T7s : 11To e f fectuate t i1e p olic;:.; o:::· t l1 is title, the Pre si0_ent is he:-eby 2-uthorizet t o e s t aiJlisl1 suc 1 E' r~enci es, to acce:9t E.mc: utilize suc:1 

volunt 2. ~" anc".. unco:.:lJ cnsat e c3. serviceE·, to 2-:?~J oint, rri thout ret=;arcl to the 

provisions of the civil service la\rs , _ such off icers ancl eD:9loyees, and 

to utilize such FecJ..era l ff :;_~s a:"lc-;, eu;>loyees, anc-;,, '.-ri th t :1e co nsent of 

the Sta t e , such Sta te, 2.nd Local o::: :r i cers a,:nc"'t. eop loyees, a s he may find 

neces sD.rjr, to prescribe their authoritie s , ci.ut ies, re sp01ns i bili ties, and 

tenure, anct, ~:i thout rega1~ d to tb.e C1 :: ss ifi cc.t io n Act o:..: 19 23, as amended, to fix the conpe2:1sat i o:1 o:': an~r off ice::s anc_· euplo;yees so appointed. 11 

( **) Not e (6,), supra. Sec t ion 2( b ) provi c:_es ns fo llo\78: 11 The President 

may cl elec;2.t e a xw o::: his :-~u ct ons C'.nc-;, p one r r; unc_er t h i s title to such 

officers, a .:;ent s, anc!_ emlJlo:ree s , a s he no ~r ~- es i r;n2._te or appoint, and 

may establish an incustrial lJl anni n::: a nt resea:;.~ch a c;enc;)r to aid in 

carryhY: out his f~_m ons -:.:m(_er t l1i s title . 11 

(***) Executive rc1e:;_~s S173 (June 1S, 1933 ), 6205-A (July 15, 1933 ). 

The Na tiona l I n.C::.ustria1 Reco-.:.·er- ~oo :;_·o_ ,_--_-.2.s nvestec~ ·:i t b. the saJJe })0'.1ers 

at t he ti21e of its ap:po i ntL1e:,.1t b~r :: ec tive Order 6$59 (Septe:-:1ber 27, 

1934) a nd 69:;3 (l Ia:~ch 21, 19::;7 ). 

( **~*) 11Reg·ulat io ns for t ho 2 .. ''_justr.1ent District Ccn~ol i anc e Direc tor,s· · 

of compl aints :~ ~oC' e v iolatio::.1s l

1 (O cto'Je:~ l ) , 1933 ) , . si:;nect -b ;- HU[:;h s·. Johnson , Acl_'-li n istra to:;_~, anc~. E1.:p~r oveC:. "J~.- t~_c Sp e cial I nclustrial Re cove r y 

3 oarc1; Release No. 1847 (NovcD-oer 22, 1935), stpten ent by General Johnson regarclinr.; coe_e 2.0.1:-1 inistr r"tion ; NRA. Bull e tin ::o. 7, i

1

Hamw.l for the 

.:::.-:.justnent of co:Jpl a i nts b] State Direc tors and Code Authori t ies" 

(Junuar~' 22 , 1934); 0nL1ist:;_'~ tive Order X-14 (April G, 93~1-) Adninistrative Or<J_er X-2g (I.fav 12, 1g34); Off ice H2.nu 2.l, III-4100 et. se ., Comp lia nce (Uarch 27, 1935). · S.ee a l so Office Order 40 (Octo ber 26, 1 933 ), '.7hich amonc othe r t lnnc-s 111 e::'::"' ect c'Lel ec;e..tec"t. to t h e Co· :pliance Di v1 sion 

the :po':rer to i ssue instruc ti ons as to the ac:justuent of cases. 

(*****) Offi ce Order 4o (pc t ob er 2~ , 1933 ). 

9861 
- 13 -

Sect ion-.S2.- The funct i on_ of t he Co•1T)l i0nce Divi si ol} to ad.iust comol ni. ts. 

It wns t he ~r of the ~· 1p li M:.c Divisio n , , s st a t ed in Office Order 40 

(*) est ab lishi ng t he Divi sion , to endeavor t o adjust e1 ll cor'lpl niJ, t s of 

viol[! t i ons o f c odes o f f.:li r comp e tition , ·md of t h e Pr esidcYtt 1 .., Reem lo ~r 

ment re ernen t. This fw1c ti on w._ s f urther stat ed by t he Ad.!n i n i strnt or 

;;t S the adjust 'len t of compl a i n t of no n-comp liance b,r educ a t i on , f air 

fin c\ s of L .. c t, 1d t he p r essur e of op inio n with i n t he industry nn<l by 

:~ rbi tra t ion , co11 i li e.tion, and medi a tion. ( **) The r e was p r ovided an admi n istra tive mac! i n ery for t he h {lndling anci a djust ment of comp l a i n ts 

whi ch had it climax i n t he p ro cedure p rovided fo r r emova l o f NRA insi gni a 

from iol a to r s and t he r efer ence of una d j u st e d case s to the law e:t1 forcement agencies of t he Goyernment ... (***) 

This idea of adjustment of ca s es of vi o lations found p r e cedent i n the 

established p r ac tice s ·of the :B'e der a l Tr ade Co rrunission and the ·state 

Labor Dep artme1 t s . A r eport of th e Woi·nen 1 s ]ureau of the U. S. Department of Labor sumr: e d U:!1 the a dmi n istra tive efforts of the various States 

in obta i i1ing compliance with the ir mi nimum wage laws, as follows: 

11 I n en::'orcing t h e l aws t he c o.1:"1ission s have relied much more 

on g[ i ning comp li a:..l'l ce ~ rou g:n setti:1g rates that would comrnand 

gener .1 support from t ne err;r loy ers than on forcing obedience 

throu :;h wi d espread p ro s ecution of non-comp liance. When cases 

of no n- co:TI})li a nce have been found, every effort has been made 

to adjust e c n.ses informally between the employer and the 

commission's at:;ents . 11 (  ) 

Part of the adjustments made by St ate Labor Departmen ts included the 

collection of b ack wages as we ll as obtaining t he present confo rmity of 

the employer's operations to t he l aw. 

Similarly, the Federal Trade Commission for several ears prio r to 

the p assage of t he Nationa l I ndustrial Recov ery Act pursued t he pr actice 

of dismissing cases on stipu l ation that the respondent would discontinue 

the a cts obnoxious to the Commission. ( ** ***) While a close par a llel 

between t his method of operation by t he Feder a l Trade Commission ru1d the 

adjustment system of NRA cannot be dravm, it is men tioned to show an 

established method of admi iste~in g t he law where t he volume of complaints 

of viol at ions is too l arge to be efficiently handled by the enforcement 

sy stem p rovided by t he stat u te. 

Section _4 - Def'il ition of ad.iust en~. Although, as has been p ointed out 

in the t wo p receding sect ions , t :1e funct i ons of t he Comp liance Division 

have been stated on 11urnerous occa sions to include p rimarily t he adjustment of comp l a ints of viol a tion, a thorough search of orders 

(*) Note ( B), Supra 

(* *) ·rteleas e 1847 , Novem-ber _22 , 1933, sta tement by General Hugh S. 

Johnson wit ~ r eg ard to code admi n i stration . This statement was later incorporated i n :Bulletin No . 7. 

(***) The i nsi gnia removal procedure is described be low in Chap ter VI. 

(  ) Bul l. etin 61, 11 T:'1e Deve lopment of Minimum Wage Laws i n the United 

States, 1912 to 192711 (1928), 278-319, i nc l usive, gi ve a detailed discussion of a d.mini strati ve measures emplo;yed by sample States; see a lso 

PP • 381~ 390, i nc lusive , for a f u rtber discussion of the subjec t. 

(** ***) "Annua l Report of the Federal Trade Com..mission11 (1932) pp . 44 , 45 

9861 
- 14-

and. in struc t ion s pe rt aining to the subj eat f ails to r eveal any a,ttempt 

t o o_e , f . II d . t t-Il J. • 1 t . 1 1 t d t ( * ) l ne a .Jus men unul P.o. compa.r aJlVe y a e a e. 

Ho:rreve r, the meani ng of .the term can be arrived 2.t ·by g iving consi de:L"at~on to · the common sa s of tbe '.""Ork , tog e t her with the various 

officia l stat ements ·outlining the f unctions· of the CoL.mliance Division 

and the e l em.ents of code administr a t ·ion. 

Tl1e · st anda rd d.ic tion aiJr definitions g ive t he r:1ea..YJ. ing of the nro r d 

11 c;:td_j ust 11 ·as being to settle, c:ir bri ng into h3.rmony •rr i .th the general 

plan.(**) On the other hand. , the word h as been g iven · a special meaning 

in busi ness trensa ctions , e. g . to settle cla ims, a s in the insurance 

busip.ess • 

. ·Thus, ,,-:e see th c:tt t he me211 ing s c r ed.i te d to 11 adjustment" by usage 

ernbod.Jr the iclea of the payment of cl e.ii:1s or darnages, i.e. restitution, 

and the present correction of variation s from t he general scheme s o as 

to bring conf ormity o/ith the rule, i~ . fut ure complianQe. 

This application of the term i s lent cii gni ty by early .utterances 

ega.:~cL ing code adi11inistration and c omp liance , General Johnson in his 

releas e regarcling code administration (***) said, 

11 The t e rm 'administration for comn liance 1 is int ended to include: 

(a) 'l1he instruction and education. of tho,se subjects to the cocl e a s 

to their :tesponsib:i,.li ties the reund.er so a s to ntic~pate and avoid complaints of non-compliance. · 

(b) The adjustment of complaints of non-compliance by .education, 

fair f incling s of f a cts, end t he pressure of opinion "'i thin the In tr~r . 

(c) The adjustment of comp laints by arbitration, conciliation. a .. -.:1.d 

me chat i Ol'l e 

( cl) The rendition of :;.~ep orts to the enforcement agencies of · government in tho s e c a ses mhere all othe r means have f a iled. Such reports 

shoul c_ b e based up on a d.e qu c:tt e fincting s of fa,ct. It 

The adjustment of cases bJr educa tion and in·struction of resp011 c1ents 

as to the ir code obligations cl early i mpl ie s ·bringing the employers int o 

immecli·B;te· comp liance v.•i th the codes so tha t continue d_ future observc..,t i on 

of the code r·~gul tions r.1 i gh t be virtually self-sust a ining (excep t in 

wilful cases). Stress was l a i d on bu ilding . a. sQund ba sis f or fu ture 

code cor!r·)lionce by · industry . 

(*) Fi el c:t Le tter 125 (June 13 , 1934 ) stated cert a in ·standards of a djustment and indir ectly defined the word; 7; i e ld Le tte r 193 (Janu ary 

10, 1935 ) cryst a llized. the meaning s h e r e tof ore g i ven the . term ap.cl 

·plac ed them in defin.i tion form; Off ice Ivianu a l ,' I I i, 1518. 221 and 

1 51 8. 222 (November 21, 1934 ). 

. : 

(**) TI'ebstert s New Int e rna tiona l pict iona ry ; Funk and Wagnal ~ ' ,s Ne...-: 

Standar c?- DictionaTy; ·-:inston' s Sim lified Dictionary. 

( * * * ) Not e 1) ~ 13 . : 1 

9861 
- 1 !) -

· cco:,ni tion 1'"'::! ~ also ~ v .n to the f e ct that some sort of reconmense 

should be sow ht fo1· he dr:1naf;e (. lready c~ . This iu a naturl31 conl usion f~om rdjun~ment by arbitration , concilia tion, an~ modi 1 tion , since 

in onnosing the dif1eren es betveen the parti e s to a corrp lai t , it ir; 

su,'"'~ y tho c im to ·o·.nu r: c[ltc the a ·g ieved pe.~. son . l'his i -oa is, of 

cou:-c .. e , uore clec.Lrly e:7 t'e" sed i n violc .tions vf wag es and hou s provisions, 

, het' , the eml')loyee mc;.;.~r e pai c. the deficiency in wage or be co•npensat cd 

for his overtime . 

:Sec ause of the a l most limi tle"'s ve1 ri r of situ .. tions a rising u:;.1cte r 

coclo complie.nce r in rrhic11 no t 'VO C['ses o.r viola·cion w re ~xactl :- lil.:o , 

it is i1J1p o ssi ble e ven afte r t;·o y ears of e xpe r1 cnce to dra ~ a. p r ecise 

d.efini tio11 b:ro~d enough to cover all contingencies. However , there ···e r e 

developecl. c'efin: ions · ·hich s ffici E-ntly embodied the principl es and 

basic ele;ncnt s of aG..j1l.;.i tmen t to serve f : s a .gen eral guide in the ~nd.l inb 

and settlement o· · ca es ·oy the fi e l Ci. s t a ff and the comp liance councils. 

Section 5 - ?u:r"Jcse of .ius:t_mer~~· (*) ~~hrouih out the his't.ory of comp l innce the u..Dderl,;'ing t'1eor,_ r of .c nst ·:ne nt r emaine d. the same . The seeming ci fe:rence j_:n !.1eenin ,.. 8 -··:-'s C.',;."' l·O thr.; cha•l '_;CS in str ess on particul a r 

purposes sought to 'ue .::cc .::;- . ')~ .i~h ei 'Jy the C'evice, the g r acu a l evoh,_t ion 

of C~Cl.justr· ' n t technio_ucs ancl OJ.J.c: i es encl the est 0.blishment of standards 

to be iol. - n ed tn handlin €~· c r.ses a.s a r esu.l t of a ctu a l expe ri enc e,. 

The o .·igincl _our:p os e o:f t i1is s;rst - in of ope r a tion was p rima ril;y to 

i n struct ei·.~ :;> loyers c<.s t o their otlit;ations under the code s and to r.1al;:e 

them con:fol'm to the l ar: bo th fo 3: the p re sent eu."ld the futur e . The i d.e2. 

that this 1.0uld serve a s the soundest b asis for pe rm::1nen t adm inistra tion. 

Wh i le the va lue of thi s me t h od of approach shouJ.d no t b e unde restiw:.'.tecl, 

i t r:as f ound tha t something mere •:ras n eeded to p revent r e currences of 

viol.e,t ions by t:hose e;:o:9 l oye rs l e ss co o1:; rc tive toward the p rog r e?m e.nd 

( *) 'I'he evolution of t he Comp l iance· Di vision was an org anic development. 

It may ~e divided into four st~n~ t periods: the District office p eriod 

fr om October , 1903 thr ough Janua r y , 1 934 ; the ea rly Ste.te Director pe:cio c:L 

to June , 1934 ( Tl7hen Fi el cl Lett e r 125 a nd Sup:; ement ar~r Memorandum Eo. 1 

VJere i ssued and the syst em of r eport ing to ~Ta shin ton 'ilas chang ed) ; the 

lat e r State :Ji r ector period. from June, 1 934 to Januc>.r y , 1935 ('t':'hen the 

Rebional office system began to fuY'ction); and the fina l stage from 

Ja.Du.::t:cy , 1935 (under: the Ii.eg iona l system 'and when :F ield Letter 193 was 

iss _e d) to ·iay 27 , 1935 (when the Su-p r eme Court d.e cision in the Sche chter 

PoultrJ c ase was announc ed) . This. vr~ s all p r e saged_ by the earlier pe rioc1 

of YP.A a c t i vity. Ad justraent policie s, inte rna l organizationp and coupliance procedure a ll deve l oped to gethe r during t hese pe riods. 

9861 
less receptive to educ a tion by instruction •. 

Adjustr,;en t the:0. c ::n e to hcwe a n a pa.:ren tly d.if.fer6n t meaning. The 

orig ina l idea of r e stitution merely to pl~ce the partie s in status quo 

was· enla r .g;e d . to incJ.u de the e l ement of a d..ete rren t to future violations, 

although in form NHA still chmg to the first definitione(*) Thus , in 

Fi el d Le tte r 125 an d in the Supp!L e:-aentary l\':emo r andum No. 1 to Bulletin 

No, 7, there was sta ted for the first time in form of n ritten instructions 

tha t a high e r rate, varying from time and one-third ~ ;:Jar d., must be pai d 

for illega,l overtir.1e in orcie r to ef ..: e ct a satisfactory adjustment. ( **) 

Like,.:ise, in t he ab sence of r e cords , t he field off ices were told to acc ept 

the enmloyee s' st ~em nts at their f a ce va lue (vrithin the discretion of 

the offices) and to pl a ce on the respondents the bur den .of proof.(***) 

This change ·. in the pur:ro se of adj ustment is reflected. in the cieveloprnent of standards <-:md rul e s of ad.ju.stment, cHscussed later. 

Section 6 - Evolution of an acl,i u strnen t. ·;Jolicyc In the beg innin£.; of 

compliance c:.ctivities and until Jm1.e, 1934 the re was little attention 

pai c'. to '.-ra.c;e r estitu tions in a.r'.jus t ec'. ca ses. As l18.s be en s t ated. 

b efore, t l:e :7·rinci:pa l i c.1_oa in e.(.,jus tint:; cas es \'.'B. s to m2.:co tho res::_Joncl.ent brin; his business o:oe:ca tionG L1to co :c1fo:c1

mi ty. ':ii th t he co c,.e :o;> rovisions anc'. 2t;roo t o co:np l y in t ho futu:;:e . While t :1e i:11st :c1

uctians 

fo:t hnnc'_linL,; comp l a ints cont errn l 8,te ·:'. t ho -;::>e.:rment of ba ck v?B.[,OS i n 

some Ce.s es( ****) t he restitution. :i'L."i:'J. ci:') l e ha ,_"_ a ve r y he.zy an r~ inde fijlit e ~-:- l2.ce i n E' ,... j"L _stnents. Ti:e a .:-_justment of cr,_ sos ·cry conciliation, me ·,_ iatio:n, an ~: . a:cbitratio:tl, (* ****) "'h~le i mr:Jl y in€; restitution 

*~ ~ J- Of.c-l· .1. c c; ·, :lf'.ir. -.- ·o..a 1 , , III 4-100 • 2 (·L·-B.rcl1 , ., ''7 , 1°...,..-) JuO ce.~. " .r:o ll1· e(. , res t· l t ,_,_ t· l ::> n 2.s f o - 1 

lows: 11 ~lo sti t "L,_ tion 1 f o:t 2. viola ti.on me?.ES :;," e-._Ja il~i ; t h e c".e.rnat:;o cau s ec. 

by the viol2.tion so far 2.s i s :_- rac ti cablc i n t ho jurl1)ncnt of iiP.A 2.nc 

in a man'-l O:;." co:"lsi stont with lT? .. A ·1o li cy .n Tho :!..at tcl' ~~a l~t of t ho c~ efi ition co nt2.i :.1s suci1 gen e ral qu 2.l ific.Ei. tions 2.s to me.=::e it U:tJ.SB.tisfactory 

as a ui c to f iel c'. offices for olicy i il e..n c".. lin~ ca s e s. 

(**) 11 Sup~~) lem ntar;y .1e mora: c:u,'TI No . 1, n::-.o l a tive to the AC.just:·,ent of Com-

:p laints11, :9 • 5 · (is oc~ tt he "- t o I'i ol ("_ Le tte:r 125); Fie ~- Letter 1 85 , 11 M8.l1Ue.l for t ho He.nc'.l ing of Le bo:;_~ Co l~l "(JU:t1e 1 3 , 1934:) :J. 4. 

(***) Supp l emen t 2. :c1y i'.:emoranc.'."LJ.m No . l, ) • 6, Fi e l C'. Le tt e l' 125 , ~) . 8 statec' 

the p rinciy l e o:.·,l y rri th rela tion tJ C-"' sos unc'.eJ.1 co c"..e s quil nf; t he 

keeping o f orc s. For further c".eve l o·Jme11 t ofthi s ~) :~a ctic e see C:ha.u-

. t er V Lle P2.rt of the Histol~y ( evotoc1

_ to a c'. isc~ss on o f outsta~c _­

i nt; :J rob 1 ems • 

( ) Li~son Circul ~r 75 (Octob er 30, l r33 ), ith whi ch ~o ro rensm itt o~ t ho 

ini ti-:-.1 L.1st:i."·uc t ions to District Coii~!l e.n o Dil~ t0 rs on c~ justint; c-:.ses, 

:rei d : 11 Thel'e a rc cil cu:ms t an cos m1 o1~ ·which e. furt11er· ac.".jus tmen t i s ne ce ssary othe:;,1 t han a me re exp l anat i on of t ho om lo yer ' s obliGa tion s . II 

ol~ oxam)l e , it oc.~ t h ?.t t he ·".oficieilCY shonl.·_ be "')fl_i (_ in mi n i Lum 

wa g e viole tio11s . (p • . '2 , :J2.r . C- ) It Yront on to ~.'J' the. t no restitution 

coul c'. be i:11B/o L1 chi 1.::'_ lE'.bo :c viol 2.. tio11 s , only a cor:tec tion to confo rm 

in tho :p:..~ st=m t ll -. futuro b c int;; 11cces sa :r~r . (p • .2 , iJB.r. H). 

( ** ***) n ot e ()•\ 13 

9861 
- 17-

t' l "'O indi crtt cl t h<lt t lle fll 01.mt 0:1. bt1 cl V/ - L,E'S "l?i' S to be c e t e r MinP.( ~·­

t. _,r ee .1ent b t crer!l t he unrti · "S t o the fac t s . 

Thi s is s t a t d in .tu :n e tin 1Jo . 7 n f ollo rs : 

"If tl-e res_p onc Pn t aclr.lits t h e viol c-.tion a lle ["Pd. but f urn is:P.s 

sntisJ.c c to r y evi cleJ ce t 11:-' t "'. e is now coM ~r in , is r:ril 1.in8 

to comp l y in t 11e J.'uture ;'nd has mr.cle e qui t '"'.bl c:> r e sti tu o~1 

for p a st viol tio ~L , t 1A ~ce l bP consi de r ed a s Rdj str ~ 

and t 1e com~) lainan t and r e sp o:1ce•1t rrill b e so notifi ed ."( *) 

Many c a s s , e )e it'1 lly d.l.U"i n -:. t 1e p eriod bPfore the e st n.bli : :c::1 t 

of the St a t e offi e s;rstem i n Janua ~r , 19 3'2:, e r o a d.jucte d. a10. clo sec. 

rel r on the Etg:t:'8E'" 1en t o: t l1e r e '"' p onden t to co1111)1 in t he future. 

Little or !lO at terrr;_) t y;·as mnd.e to ~, _past vi olations other t h[1.:.1 b~r 

e::: ~; laining t he necessar:- c:1.:m.:;e '"' in Oi)e r a tio_ .:...:16. obtaining acreer.1er:ts 

to compl y in t l e :'ut·. __ r-e , vr 1ic 1 vre r e of t e n inform0.l Fti":Cl oral . Restitution na.s r A(luirecl onl;T i n inf:rf'qUPn t ca ses, nhere t h e corn:_o laina.n t nn s 

U:.ilusual ly. sL,t ent , r·1C L1e:1 .. .... s Oi'( i :. ri:~- Y the r esu lt of cou :~o !:"l e 

b e t 17nen CO L ·lain.:..'l.ll t '~I~c' 1(~ t. 

It mu ' t be re mem·n re . L1 t >,is conn ect ion t ha t thi s wa s t he i llitial p eriod of e:-- er me~1 tatio .~ . The; ·qn r sonnel , both i n Washington 

~. in t he f i eld , w:-ts ':"riLl f e \7 e:-c eJ_) t. i on s t.ot;:;.ll r ine::--.'}Je rienced. L1 . t he 

adr,linistration of L1c:.-c..strial e?: ion . A tl ire ct r esult of the lac ~ 

of experie:..1ce tra s t :1e ab sen c e of n.:ieqw.te instru ctions and_ YTOrld ng 

p olicies, uh ich cou l d. -uP succe ssf ully de ve loped. only from actual cont a ct VTi th .the p robl eElS of cocie a dninistra.ti on . 

Aclded to t !1is as t he fact t hat t he field off ices were gr e a tly 

u~16 errnanne . The n ormal stD.ff cor:..si st eel of t he Di strict Comp lionce 

Director, his assistant , a Le ga l .Adviser, and perhap s _ one oti1e r pe rson 

~1o di vi c.ed his tir:1e betue en the f i P. ld office and t he Loc a l Co 1pl 2~1 e 

]oard. There was a.lso, of cm1rse , stenog r aphic and cl erical e.ssista:..1ce . I n t he Lissouri office, for e:xanp le, the :ce nere but t "!o Jeo:ple 

actu a lly h:1.ndlin0 t he compl a i n ts v-rhi ch He re p ouring in a t t he rD.te of 

aoout 70 to 80 per . 

The l a ck of an aCl.equate, tra i ned st;_\.ff g rew to be one of t he 

outstandi i.lr: problems of t i1.e Com:9li a.::.1 ce Division, both in Wash i n,:,ton 

a:1d in t he f i Al d , and. :p l ayed. an i nlJortant p a rt in t he formule.tion of 

~;>o licies of };>rocedu:::-e . 

With the adc eci ex·_p e rience in obtaining compliance and t he i a -

creased staff un<ier t h e Sto..t e of :=- ic8 :-stem, caTTie a gr adual change il1 

the Cadjustment ;o lic . Wh.ile 1i s c-tep i ::1 t he d evelopment c_i d no t become reoll ~ apparent so as to be of fi ci c.. ll~r adopt ed r the Comp li ance 

Di vi sio:J. U...'1 .- il June , 1934 , it n a s yre ll recognized. L1 t he f ield. seve ral 

(*) Bulletin 1'o . 7 , p . 14 , (Unc1e rlining supp liec_). 

98 61 
-18-

conths be fore. (*) 

Acting on t he ir on:.1 i nitiative the state off ices lai0_ more ane_ 

more stress on bad: 1;7age r e stitutions a.:.1d for;-aa.l assuranc es of )re

sent and future c ompliC'.Jlce . I11 st e e,d of the ori ginal p oli ~r , (i cto.teo_ 

by necessity of circumstD.llc es , of t CJ2;::inr; t !w re:pondent 1 s assura<lce of 

coope1·a tion at its face va lue, stricter st c.nda:;.·ds of acljustment 1.ere 

Lltroduced_. The requireP'!ent of convinci ng p roof of present om ?liai.lCe 

ano_ payment of all bacl: nage s c!.ue to t i.1.e c omplainant a s well as to the 

other emp loy ees of t he respondent, t ende cl to oecor.:e the polic~r of the 

field off ices in adjusting comp lain ts. (** ) 

This change in adjustment p oli.cy wa s cause()_ not only by experien ce in 

hai.lCUing ca ses 1 but b~r e x:trP.me p1·essure from labor ru1cl the mo::..·e :cesp onsi ble emolo:-rers who s e.w t hat t his v;ras t he onl•r fe a sible method. of 0.eal- · .., (,1 

i11g vvi th ~- violations admini stra tively . 

Coincidentally Hi til t he de lo 1e n t t nldng p lace in t he f i e l d_, 

and even slightly prececU ng it 1 the national Comp liance Board began 

(*) This change in adjustr.:1ent polic3: clio. 11ot occur uniformly 

· throughout the field. Some offices p r eferre d. to regard. as 

adjusted any cou:p laint which had_ be en p roperly clea red.. from 

t he record in accordance rri t h t he reporting systerr1 then in 

effect. 

Thus 1 when a case ~-Vas tra:'lsferrecl_ to another agency 1 either a 

Code Authority or the National Cor:1:p liance Di r ector fo:;_~ instance, 

for further attempts at settlement, the obli gation to adjust 

the complaint was r egaro.ed as terminated. That this was a 

spurious pre sum:p tio:J. i s clea1· wl1en it is recalled t hat man~' 

such cases wer e returned to the State Offices still unadjusted 

several months l a ter. It was partiall3r because the more progressive offices :ceali zed the fallacy of this definition. of 

adjustment that they gravitated towar d a stricter policy of e.c1-

justn ents in fact, rat he::..~ t hOJ."l t hrough a mere boold{eeping device. 

This l a ck of homege11ei tzr of t he f i e l d off ices in ctevel o:pment of 

their credos of adjustment and. me thod_s of operation was o.ue to 

variations in personalities &J.d outside influences on the particul a r of:fi ce s. This is 0.i scuss ed in more de t a il :.under Chap ter IV. 

(**) One should avoid the inference thn t. t he cha:ae;es in adjust!D.ent 

p olicy sketchecl in this section Tiere sudden, or unlGlO'm to the 

entire sta ff in Washington. Those persons who came i n contact 

with field work, even in 1irectl~r, were also cognizant of the 

change and the necessity for it, although perhaps less vivicUy 

S0 a It was only t his fact t hat off icial recognition coult._ be 

accorded. The development was a mat ter of growt h r a the r t han a 

sudd en determination. 

9861 
-1 9-

to tend tona rd. a I!10rf• strict. a ju. tm0nt p oliCJ.' · Unfortunutely, tho 

·oolicies ~·~.a bli sh.d by t he Bo , rd uere not conmunicateC:. to the fielc1 , 

e::~cept ino . .i..:.:ectl ia isolated ca os , until June, 19':i4 . 

Thus , we se ~ t:1e ::ntion:J.l Com}?lianc . Bo,l=lr(1_ adop tino th . fallonin~ state~ent of olicy nt "ts 23 th mee tin , on December 13, 193r : 

"The lffiA Folic~ i 17e ll established th'lt t he lJational 

Conpli ance Poarc:.· or ~- local Cohlpl i a!lcc Bo'"trd m~r properly 

require e.n c:uijustnent · r estitution o:' back pa;r as a 

condition to con tinuoCl. eli splay of t~18 13lue Eao:le unc.er 

PRA or as a con6 i tion to restoration o:t' the :Olue EaGle . 

"A nur.1ber ~=' local CorurJliance J3o.q.rds are on record as 

r ei"using to .:.Jut t _::.emsel ves in t he position of collection 

agencies. As a ma.ttor of p 1·actice.l i,1inistration , we 

mey advise the l ocal complicmce boards to assist in recovering back pa:,r. The locC'l comp li e..nce boRids may adopt 

tae :~ ol icy of 'iii tb..holc.ing r ecor.u.e ndr:tt ions for removal of 

Bl ue Ea5 les f1·oo vioJ.ators of PRA who make restitution 

to em~J loyee s . " 

At t he same mf'letii c t he :Boa rd f>stablished the p rincipl8 t hat 

restitution for overti::1e , in rJ.d.c.U ti (\ 11 to as sura..11.ce of future cor:rp liance, 

uas i1ecessar y for restoration of 1e :Blue ..t:.,ag le. (*) Previousl y t~1e 

Board had. establi shecl. the p ractice of 1·equiring ol~mal agreements to 

adjust ar.d to- comp ly in t n,_ futur e. (**) These t wo policies we re 

follo ne d b~r t he Board.. L1 handlinb ca ses befo:ce it until its abolition 

on -;:iay 21, 1934 by Gff:ce 0rc1er 90 . (***) 

Morea -er, the lTe.t io :~a. l Coi:'Ipli "1l1Ce Board earl 2r recognized. t he 

penal tJ ele1 ient h! aC.just me.n t <·ac:. shape c. its p olicies to i nclude thLt 

o.irection. In the True Form Corset Co. c a se , De cember 6 , 1933 , it 

requirec'. as a part of t~1e ndjust :--1ent t hat the r.espond.ent pay the costs 

of 8.11 audit to e1~m 1e the mnoun t of restitution and a l so pay a S'Lun 

to t i.1e Code Au thori tJ to r e i uburse it f or investigational e xpense s.(****) 

(*) Complaint agai nst Consun.e r s Fooo. Stores, Bridgep ort, Conn ., respondent, r.1 inute s of 28th meeting , De cember 1 3 ,1933. See ~ so 

ca.se agai nst Loro r.:a.nuf a cturing Co. , Ne"7 Orleans, La., responc'-m:.t, 

minutes of 29 th :neet i ng , Decenber 1 5 ,1933 . See Fi e l d Divisi o11 

files. 

(**) For exaR!p le see :c1i:ii.utes of hearing of True Form Corset Co ., 

Phil<tdelphia , Pa . , Dece:::1ber 6 , 1933 . See Field Di vi sian files. 

(***) T: ese :p olicies ne re carr i eC:. on o:r t he AC:.visory Council, sllortl3r 

ch2nged to the Cor1:p lie.nce Council, '7hi ch '.7as established. b3• tl1e 

Conpli ance Division pursunnt to Gff ice OrCler 90 . The Advisory 

Council took ove:c t he wrlc of t he National Compliance Board 

wi t hout a brenk. I n f~ct the change was hardly knonn to lJel~son s 

outsio.e NR.A i n Washington. See Chap ter VI, infra, for e. further 

discussion. 

(****) See Note ( 27), sup ra. 

9861 
~ 

This i s oette r ilhu:; tr te ~ .by the follonil:.g ste.tement of Olicy on 

Feb :-..~a.:c:/ S, l S,. .L1...: : 

11 1:-;-:.t i o:i."lE-.l Conrn li2.!1 ·e Joe. :..·(' :r r>:_,c.:;. s ")_) e.ymen t of cost 

o f e .... lC.it by l' '} On ~'. t e.s 8. fair r r1i.. . necessB.l"';'' ·; 2.rt of 

t h e :..· stit·o_tio ~1 ."(*) 

The ~Jv ious ~- :..~ e of this rie.s hro-fo c.~ ! ·co co_nserve co m.:_J liance 

fe.cili ties of the Conr;) liance Di visioP. 2.-r:.. c". the Co c~ e kuthori ties e.n c,_ to 

cJ~. an ext :..·e. -rY\E'•:.e:.1 011 the res )on -::' e:c~ t in rre.k i q; the a :-_just men t so 8. S to 

ten;:'_ t o mL1.im.ize e.~ y future c.:e si:::e to v iole.te 8. E;B.i:.1, (**) 

I n r i e l ( Lette :c- 119 (Ju.21e s, ~4) leJ.' e .Vi2.S J:.aucure.tec: 2. n evr 

sy stem of :..·e:·.)():t. ..... tinc from the fielc". of ices to the CorrF)1ia.n ce Di vision 

in ··.Yashir:.·. ton . Be.-:; i:'lninE; yri t h the :_::: erio :,_ of JU11e 16 t o. J u.ne 23, 1934 

the off ices :..'e::; ort e c.: the anm.1rt s o f uack wab~s ~Ja . b:-· l'e s=_Jon( ellts L1 

a c.j ·o.s ti:i.1.; !Joth PP.A : co C'.e vio1::-·.tion s co :~p in ts • . F:t.·om this tirn.e on 

(when Fi c l c'. Iett ~ :S J.1 ~ S'\ZJ~; me:;.:tte.:c·~ l.iemore.:nc-.-u.!i1 :Eo. 1 to :Bul1atL1 

No. 7 Yvel~e a1 s o i ssue c~ ) '\.1'D.t il t l1e t <;l rtnin-?. tio ~·" of C01'12.)li8.i.1Ce a.cti vi tie s 

on l':Iay ,?,7, 1S35 , co ntL1uecl emphasis v72-S l e_i_,_ Oi1 vca :_; e · r .esti tutions in 

ma1::Llc, e.-.jus t :c,len t s . T:1e ~:ee sons fo:;_' t his a. t t.ituC.e bave bee n tiscussec: 

in the pre ce ~i~~ section. 

In tl1j_s con:;1e cti.o;,1 it is v.re.lJ ·co ;.1o te the.t t.ml'.e r t he n ev.r re:£)ortiTI-G 

system the fie l C.:_ offices v;rere 'eQ ui:..~e :. . to shor: rrhich of the vali cl com-

}J1a.i nts ha(. lJee:.l .( jus te e~ by. the "Da: 'men t ·of bacl: wa;;;es. Vihe re the 

re~901~ t to ':ia.shi::.1t; ton shov-reC. complaint.s r;:Cd. cn .}.tac-_ b e ei::. closec withou t 

the r e s-·J0:1( e;_:. t rnel::inL ::.~e s ti t.ut or.~ t o h is ·employees; there v:-e.s al- . 

vre.ys t ho ·_'.istinct ~) ossibi1i t y o f th:::: of'fi ce beii.1C c2.l lec: to e.ccou.nt 

a11( be i n:.; i!1a(e to g_.i ve some tiraes er.1be.l~re sL1 ~ ex~ 1ana tionp of t he 

~. epal tu:;_·e s fl·om 2.:-·.jus t nent s t.e;_ -2 :..~ .. -.s. · Conve r s ely, the F.ea '?ras 

+ , J 1 < tl .L' " ' • . f.' t ' . .£> · 1 ' , . , ;:) gene::.~a. ue ·:_ GT£:. G 1e O J. I l Cl 811CY Oi 1J.8 V2.1·1otU:'\ OI J. l C_e S . '-':'OU '· oe JUCgBL•.-

by t he m:enbe:t of c2.sec'1. ::.~e 'Jo c~:. e.s E'.(jl..lS.t eC_ E·.nC. t he amo~:mt of restitu- . 

tio;.l rn.-8 ~e 1Jy er.r_:; loyel'S to thei:;_~ rror: .. :e:c-s t h:co'll.t_;h t he effo::.'ts · of the 

~rticul r o ffice . 

·Th is- s ervec: a s e. v ery. ~- :;.·t :::..nt )SJI ~'lo 1ot, ice. l factor in causin~ 

a ll fie1 _,_ offices to ra is e the il' i:l.--.ivL' u.co l s t e,n c'.e.rc'.s of a:-_just:-. en t 

an(. to becor:le n o:,_-e e.ne.'. more active 2.11:-. thoro\.:tf): i n the 88e.rch illt; out 

(*) Liinut e s- of S?t >:. me eti::t1c:, I'e"u~L.la ::c";;- C::\ 1 C: 0..1.., . See r i e l.'. Division f iles. 

(**) The l'.eve lo·x,len t of t he :Soe.rc-l_ls olicy to requi::.~e ~)e na ~· :;. tes in the 

case of ille tie.l ove:~ti e n ill be '. is cu l~ L1 t he snbs e quent s e ction s 

of tl:is k".. .)t :t." C'.evote .· ~- to a t 1·ea tmer..t of the Cl'eation of ste.nc".2.r(s of 

e. c.-_j u s t me11. t • 

... ~ ' 

I 

9861 
:t:1o1..1_.: :.!0t 1rc .tly t ::.·E coeb1t.. tc it , llE'V"'l't>.c. css, i t ~ i · t .~.·- 1 1 . . t t. .. ' 1' ·, .J.''l'. {·_ c stiP t ·) "ci "c~.::-t t .. : o1'1 ci~ ;•1f'i1l ~e s :- 10:r.. 01 C1f'i1WC . " v 

- t ~ .t:' .. .L' 

mc 1t ·oli c .. '£'"' coL~c1'on ol ,:·i tl t'o c:t·"'' 1o:.• 0.1. 11.1..0 Ol.i 1Cc O.i. 

Assict..,: ·c ~-- ::: 1rt.:·~to.· fo:;: : i "' L. ~- 11·d.· ist2,ctio:.--. . (*) -:L'.~..c ao.:l:.i 

tr·.'ulis:.~. -- 0 t.itio:.1 ce.:.1 : :t o'. ,- ·~~1 it tl.n fUJ11t i o:.1s of ~U.'"'C:ivisio.~.t OV.!l' 

J.. ' · · c ·"'o11· 1· c s ove-"11. · co r: "'-11 . .,.·.~.'leo , Oi1fo .. ol 1c:· t , 0.:.1 · 1.-.1.'lC c=~\; 1..' . .; 1o:. .. · L.• - --

C'0 •-.0 £'.ut;w ::. t'" o:. ?niza ti o:.1 ; tl:."' oo·.·: i· £'.t i o:·'. of the I !l ·ustr;r :Ui i -

sion , .. it ~: t~:.: Co rr;l ie:.1cc e.:.:·. L~ ti...,"' tio, J' visio.1' ; 2.:.1 · t l.c m?:: i:1~ 

f'.:ll'. Oi:OC'L.ti•"; of O'')Cl'?.tiL0 ·.-- 1e.:.1 s fo·:- ~1c ,·. evc~o-1u,c::1t of f iol ·. co r,~

1)1ie:,lCO :':•. ·. r~ :i.f'1 '. 1? o:. c ics. 

At 2.bo1..·.:c ·cl:1s time 21so , thJ r:or( 11 c~y'. ite blo 11 V!e.s ,-.:.·n··T)Oc". L1 

(osc1ibL1_ :,_·estih.~_ tio:;l. (**) r1e 1:. Lo tte:· L~ ..J s·,c::· ... ~cs o r 11 fu11 

rosti tLti o:l . u '***) s:'~1c use of t 'L Forc.·. tt oCJ..ui teJJ1o 11 i:! con:;1ec t io:.1 

rJi th re ·· ti t\·.t::.o·~. socr.1s to hc.v e 'Joe:: i.'ol i .·_ ioL.1.s 1y e.vo:i(e~·- b~- t :1o Co<n-

. ..,11.'-'"'lCO -;--1·v..: .,...1 ( eX"C., J.. 1·· ·'- -"" oc: .... .r:o ...,\7' :::.sor o .r' n"- l..-... nmo ..r:-~- ,:;:l~1C1'.::.11·. ) .~ • '"" _ -~- c .•• " •• L. •• ""'" .l.U. ··-· ;:::. .1. v.Al- ~. .l..L•--·- , -· J. 

a.bi1it;r, otc . ,.l1o:·e co: "'l~ :Jisos \ 'Cl'3 ,:-.1 ittoc~ ) ( ) f:i:om t r..e.t t ine 

on. (** ***) 

'i'h0 ·.;o J.i c:· o:· e.''j -o.s t r-1Cil t o f corr:- 10L1ts 'i'e.s f i :'.r l1y ste. tc c'. in 

tlle Of .ce j':- :l.'P l ,. I II, /.::1_1 (I.: :> :c~1 ~_: , F':;G), e s f o1loY:s : tt Eo 

case oe · e f:L -:'..c .. .'. e.s e.:'.juste·".. u::~es :: :..~ st:,tut io:: l1E'.c bco~1 r112.c'.e to 

the ex'\: J:. J.; -oo;:te r' just El1 ·-.cx:ru::. t e,"u 1c b~.- t::..0 Conr! 1i2.ncc J:;_visi o:.1. 11 

t~'.::> :: e:'_:·oe.c'.~' bcCl"·. shon:.1 c..t t:·w 11 e~ tc: -:. t 'eer.cC: jus t e.nc 

equitable 0~r ~~:.C' CcL~-; i? :1 ce :Ji visio:;-,_ 11 · ·a.s f1.:.l l j.'e sti tutio~l to e.11 

eri~.J oyco r. , e::ce· t i: 1·t~1osc e:dl'ao :..·c-L:o.:..·,/ c2.s es 71 !e:.~o co;·.n :.:-omisc settlemen t s · o:.·e ·_-G :c·:.i ttec' .• (****** ) J~ ... -l e::ch.'c si ve , 1ec 1 :-_):c oce C'.ul~e V!e.s 

fi2al1y oSt2~1isho ( fo~ t~i s tt er t y?c o f a f jus tment .(*******) 

(*)Offico 0::-. c:~ r.; ( ee.:.:1y J u:,1 e , ~t ) J ) - • 

(**)See note pe1ge 18, :onDra . 

( )Discuss cC. i :2 C:!..=."'.· ' t e :.· V, ction~ . 

(** ***)The ter; .. i

1e.._-L1 . .'.te.'J 1~ l'estitu tiontt re- oc·1..us L 'l t:!1e Off ice i:2.111..12.1, (Co -.e 

Anthorit~r Cl'u2:i.1ize ~·-o·l) , III, 1 )18 . ?.21, --·h i cl1 st2.tes tlJ. e ~"J i~~, to be , 11 U~)O :! '.ct'3:..YlL-:.e tion of e. vio lEt i o:'. , tile colili'Jittee r:l8.;)' co::.:si c'.er t he 

C0!':1:",)1i::>.i.1t 8.(- j·-.-.sto c.'. if the :,_1 ~' on( ent· r.l:."'.!':es eq.ui t ?.b1e l'esti t ·c,_t i on e.nC. 

0 ~· ives S!:ltl _,v s-.~.~!:l~ to~~v -c) ::>scu-~!:1-l'lCC -.1o..V _.J.._..,. • of ._, ,.ece·1t - ._a _ ~-, ..... J_ ___ ' .r.u ....__I..~- ,~re co 1 .:: 1l· ~·nnc ......,l - \....• • tt Com·..,~·~e - __ ..J_. • ..._ 

this '.-·i t l: t!-.e str t eme:1 t o f ) Olicy , ;:..~e~_"' rec'. t~· the Cou)1ie.r..ce Jivisi o:<J. , 

co:1 ce. L1 e-~ L1 tle Cffice ;:2.m.J.2.l, III, <1 0·') ~ E.r~ .- L1,1ll, Qenti or ..ec. i n tl1e 

text i mde ,-_ie.te1:r i'o1 l o':'L1_ .• 

******) See not "J })age 20 su-;re .• 

*******) ~ ~ette~ ~4 , ) · J . 

0861 
.... 22-

T1le coT:cu.TJtio:1 of t !.1is st:cict ·Jolicy of aL~justmen t ';•ill ·oe 

shown le.t c2.' .:n·c _e:_~ o. C.isc-u.ssion of t~-:..e ~_; :..~actice of (rop:_Jin.; cases. 

Sectio11 7 - '1.1he r"e '!~ -o)men t o: st:;o;;-i.e.rC.s _ u f a c.'.,justElent. P...aving 

consic,_ e :cc( t he ,-_ef i~ i t ion 2.11( JUi.~•;)Oses o :E 1e e.c~justmer..t anc.~ the 

cl_e lo~);:Je 1:.t o f :1 oli ci es, ~ t is ;:;e l l to l ook at the stan-.'.arc'cs which 

were en~Jl y- er.'. to ~1Sl).re t :re.t t he h&.n(lin_. of com:-9 l iints v-:- oulc~ be 

fai r l y L.mifo :.Tu 2.:c1. c~ in col~ -:. v7i t h the theory. 

The st.?, eme~: t of t he f uncti011:-J of tne Corrr-J li ~-11CG Division ( *) 

in itse l f se:cvcC. a_s a E;eneral g1.:.iC. e . :By it the assu:c~2.110e o f present 

ancl_ fut.t.ll~G co:-. tu liance V!B.s me.C.e necessary in e l l cases. 

Asi ~e f:toE1 t he C:efi :ni .ti on of ju~tm nt (as sLo'.'!l1 L·_ section 4 a~iJove ) e.Er' the statement of t l1A e l emen ts 2.m-. functio:;J.s of a c.-

mi:i1istre.tioD fo:L' co r.~;~ lia nce by Cene re.l J o'rli.1son , (**) there Y:rere no 

c"!.efi n i te sta,n '-"'..e.rc."'.s fo:c t he a .. -_ j,lst me ;.;.t of ;:·a.bes a:nC. hou::cs vi ola.ti on 

· l..l!llt; l ~, "' ' c· T. tt •~ 1 ·y:: T·"' -fl- ·11. "· e st.<=~· ·.<=~-,, ,, s L'o-- t '•e .!'1 r" J'ustment of - - .. ~ ~ -. ~e - G .J • l.Jt:'- l t., -·- •.• ~ _ , . .L J. L - - , . . -

trac"'..e :Jractice ca.s e s v-.re re neve:;: i 11tl'o c"'..l..,_ cec'.. (***) However, Liaison 

Circ-Ll.le.:c 75 &.,e.ve 1c~. ic tio ns of L1e e.n~"'.. ar .s t c be fo1 lov:ec'. i n some 

caser,. 

The only p:.-e - ::-equisi t e to a c,_ justr.1e::1t L 1 tne fon11 of a c"'..cfini te 

.: t an(arc1 to be me t Y'a s conta inec,_ i n l-:'i e l c: Let l~ 28 (December 22, 1933), 

vvhich provic,_ cc~ · that whenev el~ a co r!t:!lain t ap~Jearec":. to b e justifi eC., 

2.n cl t~1e cor:::::; l e.i 112nt hac'. lost hi s job by reason of fi lint; it, ree!TI9loyment shoulC. be a co n( itio ~ pre e~en t to closin~ the case. This ~as 

previous to ~xecuti ve Orc: eJ.~ 6711, 1.:e.y 1 5 , 1934 , c'c efi11i tely prohibi tinE; 

c~ iscrimi112. tion e-&ainst comp l a il1in; e:u~J lo yees . 

Clo sel y int r:..~e s. ec~ with the ( eve lo:pment of the c:.efi n i tion 

anr:'. oli cy of aC just:nen t, t here were cvolvec~ stanc1arc":.s for t he closl..n~e 

of c :._ ses o f ar tic1..1.l r t ypes of viola tions. T}1is has been treated 

briefly ~ the foro oin~ sectioil on the evel ~me~ t of olicy. 

1

Hi t h the t; ::..'ov.·th of the i c'.ca in the f i a l c'. that it must 1Je mac'cc 

un~;rofi t e.b l e t 0 v iole.te co ~es , t hel'e rras a n2.tur2.i tib hteni 11g of 

requL~emcnt s fol' consic'.erinc; a ca ~ .t sfacto:.~il y e.c"'..justec"... For 

c:x.-2mpl e , no l'e e. t te11 tion was '--' i VGi.1 to ::.·e s t i h :.tion cove r i i'lb viole.tions 

as to e.ll i-~1~ lo yees . In ce.s e s of overtime vi ole. tions, the e.C.justment 

was reqni::..'e( t o L1 cl uc,_e payment at time ::m~~ 011e-thi rcl , or the ra to 

s:9e cifi ec".. in the coc'.e foln ovel' time Jermi ttec"_ i ncases of emer~ en ci es, 

e tc.. -:::'l1e latteT ~~ra ctic e. v!as . a c

1

.0}-:Jt ei.,_ ·· y the va::..~imls f i c l c'. offices 

i n t he he.:J.c."..linc o f nc~ i viC.ue.l ce.s es, r'i U1o~1 t c~e f init e i:1s tructio:.1s 

es ribin~ en overtime rate. 

(*)See Note page 13 

(**) See o to pag e 13 suv::a . 

(***)Fi e l c

1

. Le t to:c l S3 (Je nue.r y 10, 1 930 ), p . 9. 

9861 
. . 

·'-

-23-

'.o~.' 1i t~ 1' t :· :. , 

Gorr--1i"~v· .. --t ~- . ( __ sc,css::-.· L, ~} o s e .... ti ,·1 o · t .i. h~ t c:: u · 10: £>. l~f 

~r\~cc'L:_ . I·: c:.:· o·: ·-·· ...... ~- -1~ C'fOS v.·.:en· 1'0 to ,·[l i; jc,;, c.. f t.c 

~1\..l. :' -::' : c o: o~.' ~(*) t > " 8.l1'"i :1 '.) f t1.l•.: :Jn r1•' , •rLo HC'.:- Plso 

· ['tjo •• l ./'.:"'~ "' ; • J)~ ~.,; ~o , :~ ): ·os ,e;·_ 1,} ') a·.):, •. i cri1 oi' 'L'1'J '.::' o:1·C. s 

bcin_; t:r·. ~ :-.... .... titut:.o·1 · L.:' .L!1 t'1,_: ,...i1ti .. c ·· JC' ;:io ' o f no:l- C:.)m:jlif' .. 1CC c-~"o·· -'- ' l o .. ~? l ~ ' J. o ... c ~.lw j_i1 ::. i :_:; lie '.'. ::c :~cf'tc .. r o .• 

. :' .. ~ _ ~' ':.': ~ti\' ly l~f.'..i .. l:· l.f:t .. v' rlco , t!:r-.r~ r.· ' COl sj l ... Cl .. C· .. 

1

. t}ln 

scttL1 o. s··,., ;,_ ·e1··. :l.oi.' .C.~u r. t: :.:1 t 01 . •£-:.imu; . ~;,rn:l vio~ :~ tio 1r. . 

T:'1J l~ti.) ·· l Go:- r. )1je:1CC "'1')[-'_ ~,--_ i:s"':j CV•" . t: ... cct' ~. ;· · .. .~ a o..:'inito 

' '!"' t O 1f ")t'Tt·"'·'t ·· a ·· ::> ' J·,, r t.r1 ··1t r-·1l ··" .1'1'l('"!"' to ·' 'L· '"' '') ·~-,.~in" ,... t}v-.t - ..... - t1 . - J .. .._ . _. • • L - .. - J ) ~ . ·~ \..- ~ .l. • • - V I -.. . \,..1 ~ .J- "'- J.C.. • 

no l c.-, , t~ "' - t >. ::£ t ;.; r. ··:·ov:Jc:. i :. t~- " ~a ·or; for lo ·~l :· ti mo •.ro'll

bc e.c--:' --~ _. : [ c- Sf' ti~.:''l.c~ o- :: c. 'j-._tr t.J ~" . (.**) T:•l!'; _ i L.ht r:as rcsorvcc. 

to i·:c:~~-r. ] t1.: : rcr.:i'L· .. : il! ")f'.::tic .. l ;:;._· C" r.c s . 

tin:.:. o_· t~~l' st:- : .. >.:·c". t.l _...., -~ ~.:t. st~ t'.".t i (', ·\ ~or i :!.l .Jt_;"'.l ovc:r-'tirao 

s!:0u1·. !"~ 2t 2 :et'-' :!Ti h :: '1..1:2.:_ t~'J:?t -'-0-' r~OUl' 'Gol0:;.'2.:iCOS ·.yi_-OVi ·cc~ 

L1 th .) C'~ '(" .i t..J . (***) 

'i'hi s st? il-_2:;,~~~ l'OIT12.i:1cc L'. uc:o v.: ·. ~il AT:i l 26 , 1~~ , Yrl1cn the 

I'0? :~ , he. ·:i.~'.. , ~ t'. · _ COi.lGic'.c:;.'£.:: lc Ll.tc•nrc;,:j_il GJ::-l ,::i Cl''I. CU i ·- 1. he.!·,_( l ins 

cas e s , 11'3 .... c'. il•. <:'. c<:. so b c .:. o 1· ::; it, 

11 1. )1."-£. tr.-i·.? -,1t io ·: ovt'3 :i.'tinc o .. nloynent o :: e.:1 

cw.Jloyco , '.'·horc er ~l oy =1c11't i n exec s- ol' t he ;,Jc".Xir:mn !:CU:i.'S is e. ' i ola t:.a·.~ o:f tl::) Co e shoulc'. 2.b:2.ys 

:; ::ovi_-o :r-: :we1: t to UC~l on_" l o;yoo 2.t P ~) el' r o:;. te 

the.::. t;:£'t s~ cci:!:'icr~ i!1 tn ·, Ge; ." c fo: oVC' l'tinc c:.:r')loyr:1cnt of 2i1 e::r lo;yce ·:·l'lo is ;c ~_·;-ru. ttc ~-- O/ t ho Co ·'_c to 

. ·o :::: OV'):i.'t:i.nG . II (* ** *) 

I'~::.o :a:--;·· o:!' ::>. ·_' "l ."t:TI'Ji"'~t e.,;_rcc:· 1e>1 t 1P f. then ch .;oc~ to nc u·~·.e 1~ost itu t io:1. e. t t i . e <:.n-:. on :; - 12.1 :l' :Co-_~ ri'.::>.xi !.11J.rr: l.:.u Ul' v io l e. t i ons. 

( *) T o-f' t C!'·, -' -- c · O• .• ,, s ....... .1. -·· - --- ··~· _ ...... , 

r.Jc n·~ , :=e-::c- J·I) ~:c 

Div i sio:1. :..il s . 

L1c .: ·:Je.sl·ii j1_,to;:l , .J. C. , 'e s·- oi. :.e~ , minutes of 21 s t 

v , l C'3'.J . So.} o no t e :page 18 r-up :r•. Soc ~' c~. 

** )I•.iinutos ~: )?t:·1 .:ncot n~ , l. e~ :.."'L'!.e. : y ' lr: ~~~ .• See r : c l ( Di v i s i on 

fi l os . 

**) !.:i nutc s 

f i les. 

1;::) , 

**) A.t11Gl~ic'-' !1 . . oe.t Co . ' Cl cve l 2.1L' ' , res·: on.:' .cr~ , 1:1 il1u.t e s of l 22nc'. 

t'lceti:i1~ , .-: .. :y:.·:i.l J6 , ·~) , Sec ?~cl ·_ J iv isi oll fi 1.0~ . 

9861 
- ::: 

24

This announce~ent of a. stcnde.rd of adjustment is esp ecially significant since the func t ions of the Na.t iona.l Compliance :Soard had b e en 

resta ted in Office OrJ er 74 (Earcn 26, 1934 ) a-s including furnish i ng 

recom:.1endations on gene ral c om:p liance olic~r and p roceclure to the 1\Tational 

Compliance Director. 

The Board 1 s decision was aciopted by the Gom-p l i ance Division in es- - - sen tially the same form and i ssueo_ to the field a s instructions in :.7ield 

Letter 125 and Supplementa ry b emoren uDJTI 1 to :Bulletin 7.(*) 

13 r May , 1934 , then, the Nationa.l -Coi:Jpliance Board. and the State 

Off ice £; had c rea ted stand.arCI.s of ac~justment cove ring cases of violation 

of the minimwn '.iTage and maximu.11 h\ 1Irs p:covisions of the codes, in ad(i t ion - I -

to the inst1~ction contained in Field Lett e r 28 that reinstatement of an 

emp lo;;ree cU scharged for comu :Y.J.:'t lJin_g , ~· here the compl ::dnt was justified_ , 

shm .. :.l c'L b e made a condition ~ne ed. m ;; to filing the c.ase as adjust ad. ( **) 

Gene r all y sp eaking, as to trCJ.de pra c t ice vi olations and cases of noncomp liMce l"i th labor provisions other t hen nages an<i hours, the only 

requirements for a djustment 1.1ere present conforo ity to the codes 2nd 

forma l agreements to comply in the future. 

As a corrollary to the creation of s tand.ard.s of a djustment, was the 

more active interest t aken by the state off ices and the National Complianc e Boc_.rd in the obtaining of cor:mliance through the adjustment of 

cases. hus, even 'JIThe re the comp l a inant withdrew his comp laint ~ri th 

assurances that co11ditions had been correcte<i, experience dictate( the 

necessity of continuing to handle the case until convinced, that a satisfactor3' a cJ.justment had actually been made,(***) 

We have traced the deve lopment of the d efinition and purpose s of 

adjustment and the evolution of the policy E"..lld str-tndards to be follo-,ed 

in clo sing cases. Consideration s h ould now be g iven to the instructi ons 

issued by the Compliance Division to its field offices regardine the 

han ell ing of com:p lain t s., 

Section 8 - :g._struction~ issu ed_ to the field._ offices.(****) The 

issUC:j_1Ce of F'ield Le tt e r 1 25 marke d. a ne'.'! era in administra tion for corupliance . In it was co tai~e d what was r egarded then a s a strict set of 

rul e s fo:c1 t he adjl).s~IJ? nt. of case s. In f a ct, ho·-,@ve r, it vras eall ~ a 

collec tion of th~ general princip ler previously develop ed in the f i eld 

and in cases 

(*) Note ( 20 ), sup ra. 

(**) See P• supra; s e e also C-ity 13£-,ke::::'y Co.~ De Q,ueen, Ark. r espondent , 

Nat ional Co~pliance Board. minut es, 5l st mee ting , January 22 , · 1934 . 

Se e Field Divi io n files . 

(***)Bro.adway Motors, Inc., Chicego, Ill., res1Jondent, Na tional Compl-iance Board I1-1 inutes, 97th mee ting , March 22, 1934. See ?ielct 

Divis ion files. 

(****) The comp lete te-xt of instructions i s'sued t o the 'field on ste.Lda:rds 

9861 

of aCi ju-stment may b e found in Sup.nl ement a ry i1iemorandum No. 1; 

Fi eld Letters 12!) , 4~ , 148 , 160 , 193 and 194 ; and Of f ice !Ianual , 

I I I, 4110 et seq, 1 For obvious rea sons t h is s ect ion is devoted 

merely to a dis cuss ion of the genera l contents of those instruct i ons. 
,..,,... -, .. -

befor G t11e .c ntionnl Como1 ian e Boru·d , und.Pr which con<.>idcrable discretion \f['S 1 eft in t he fie] o. pe rsonne l in t he ~:p1Jlic c.. tion of those stnndar c.s . 

In readir.o the 11 h: nu:~. l for the H; cllin;~ OJ. Labor Com olaints 11 it is 

im_9o rtr-.nt to remembe r t~l"l.t , ueing bancd entirely on ox~:>c ri nce, it v1o.s 

both SOUlld and :practicc.l, a'1d vras used as a bibl e by the field te1.ff .. 

Unde1 tl~e heading 11 iihat Constitutes Satisfc..ctory Adjustment of 

Com~o ints 11 the r e were enume r a t ed stc:nd c..rd"' of adjustment for violations 

of thG labor prov isions of the va riou s codes . 

I n co r recting a minimtu:n wage viola tion the r esponde nt vias r e quired 

to IJa}:e f1..lll r estii"U.tior;. of l: a ck wn~;t.~ s due, ba sed on the code minim1.un 

for t :1e entire p riod ::: _~om the efi.e~tive da:te of the code . ( *). LiJ:e -

wise , in adjustin6 max1.ucu.:n hour violr1.tions r estitution v;as made a t a 

higher r ate than t hat fo r r eg ula r working hours. In the event overt i me 

was ~)G mitted. b:.r tl1.e odv ~1 n. limi t ed types of situations, such 

as emergencies and brea-<::clowns r e q: i.rlr.g the p r otection of life or p rope rty, for Bhich o.n ov ert.. i n'!e rate V'?.S s _9e cified, the e~ itutio n rate 

was SU}Y;)OSet_ to be pl a ceCi highe r. ( **) . Em·vever, in ;? ractice the 

field of_ices generally only p l a c ed the ov e rtime restitution at time 

and Oi.le - third. 

Uhere the r esp on ent he.d emp loye d "learners" in excess of the nl..unber :o ermi ttc d. by the cede , or !:..s.d im ~.> ro erl;:.r cla ssified wo r ke rs a s· !!handic apped. , 11 eithe r f a iling to obtain t he necessary p ermit ( **~) or exceedins t he a llotted. r e.tio, adjustment wr:ts made by pe.ying the de ficiency in 

the c otLe minimum wc-ge to t hose em .. ,lo;:,rees n e c essar y to bring the res-p ondent into comyliance with t he code r e quirements. ( ) Restitution 'ilaS 

mad.e, in the case of lllec;,rn e rs, " usua lly Oil the bc>.s is of seniority in 

ex:_oe rience , and, in the cese of '' h21l<iicap·ped wor ke rs, '

1 g e ne rally a ccoro.-

ing to ac tua l earning capac i ty. 

'Discre tion was ~9 ce d in the fi e ld of f ice s ·in the ap-p lica tion of 

the s t a.nd.c.rcis mentioned abov e in those cas es 1ilhere the emp loyer se emed 

fine..nciall ~ unable to ;:~J<:e full r e stitution, or where other circumstances ·appe a r ed_ to warrant e.n ex3m·ytion from the sta r:da rd requirements. 

( ** ***). ::C :1 those s pec ial cas e s, adjustment for less t han full restitution he.CI. to de -pend on the ec omme nd tion a nd :~p roval of the Sta.te 

AdjustJJent Boa rds, (****** ) whos e organization and functi ons will be 

treated. full;y- ·unde r tl e subs equent chapter on complia nce p rocedure in 

the fi elcl. 

Sta ndaro_s of adjustment were e,l s o st e,ted for those types of cases in 

which money r estitutions were not :9r .s.cticable . 

( *) 

( **) 

( ***) 

( ?i'***) . 

( *****) 

( ******) 

9861 

Field Le tter 125, p . 4 . 

c~_em . 

Under Executive Order 5606-F (February 17, 1934) "handicapped" 

wor~<:ers might be emp loye d £.t l ess than the code ·minimum 'ivage 

on the obta ining of individual ~e rmits issued under regulations 

p rescribed by the U .. S. De·partinent · of . Labor • . · 

Field Letter 125, p . 6. 

Fi e ld Lette r 125, p-p . 4 and 5. 

Ibid, pp . 4~ 5 and 34 . 
- 26-

Where the emiJloyee· had been discharged for filing a comp laint, adjustment included reinst r. tement and. agreement not to discriminate against 

him, or where reinst ate:-~1e nt on a harr.::onious b A.sis seemec. i mpossible, the 

COOperation .. of the respo ndent in seClJ.I'ing a new job for the emp loyee. (*) 

.. 

Where the vio1ation wqs the failure to p ost code l abor prov1s1ons, 

( **) to k eep proper .r .ecords, ( ***) or t n e infraction of cn ild labor' homework, s a fety·, and otl:ter labor provisions, (  ) the standards of adjustment did not gen·era.lly require a11 ~7 form of restitution. Tne adjustment 

of viola tions of productive hours restrictions (strictly spea..ldng tr ade 

practice provisions) wa s left entirely to the discretion of the field 

personnel, thE;?re bei'ng only su't;g est ions a s to several :possible adjustment 

devices. (** *~*) · 

In acldi tion to the parficul ar st c::.ndards set forth above, Field Letter 

125 cont ained. gene~ai s't o.n_dards appli cable to all cg_ses. Thus, b~r full 

restitution was meant -adjustment as to all emp loyees, r egg_rdless of whether 

or not they had cbmplained. 

Moreover; there. had to be a formC:!.l G t a temen t of compliance, covering 

the points on a suggested form, and assurance that step s had been taken to 

prevent recurrences of violations. (******) 

,,. The field. offices were definitely instructed not t o file caz:es as 

adjust-ed until all tar ms of the adjust ment had b8 e?J. comp lied with, that 

is, for inst ence, until i,he pa~'Til ent of the last ir:st a llment wl1 ere restitution wa.s made in sevGr s.:!. pay:r.ents, unl e ss sufficient security therefor 

had been furnishedo ( *******) 

Also Field Letter 125 suggest ed tha t attemp ts be made to have the 

respondents install. anc. <-'t;ree rc ma int a in acleq_uat e sets of records, so 

as to help insure f1:.ture comp liru.1ce. Tn.e i E1p ort ance of this will be 

developed in later chapt e rs. 

The standards of c> djustment cont a ined in Field Letter 125 were rest a t·ed and included in S·u,pplemen tary Mernor an dum No. _1 to Bulletin No. 7, 

issued at the same time. It further summed. up the standards of adjustment by the following st te ent: 

11 If'' violations are eli scovere d or c; dmi t ted, eviden ce of proper 

adjustment must be secure d as follows: 

11 A. Evidence that t h e hours and wages of ever?· emp loyee (or if 

that is not p ractical, of certa in s:9 ecified cla sses of emp loyees) 

h ave been verified for the p eriod in question either by examina tion 

(*) IBID, pp. 5 and lS. 

( **) Ibid, p. 5. 

( ***) Ibid, p. 8. 

( ) . Ibid~ P .• 7. 

(** ***) Field Letter 125, p. 7~ 

(******) Ibid, pp. 16 and 17. 

(*******) Ibid, p. 17. 

9861 
11 of the emp loyer 1 s hours r>nd ·Ja ; e records or of certified 

COl ies t1 ereof . If t ne employe r ~s not kept such rec ords , 

he should at leo t be requir d to fil o c ertifi ed opy 

of his payroll, 

11 B. In all CAses involving t l1 e r a;rment of back wages, 

evidence that restitution h.'ts ::tctually be en made should 

be required . 

11 C. The employer should be required t o file a written 

statement that he has correc ted past violations ~~d 

that he will comply in t he future . 11 (*) 

With a f ew minor amplifications of t pe instructions contained in 

Field Letter 125 and Supplementary I·.1emor andum No . 1, those standards . 

continued intact unt il the issuru1ce of Field Letter 193 on January 10, 

1935. In the me antime, of course, the fur t her refinement of t hese 

standards and the developmen t of their application was continued through 

the day by day experience of the Comp li ance Division in handling complaints . 

Field Letter 193 , to a l ar ge measure , r epeated the instructions 

theretofore issued , but p l a ced them in mor 8 emphatic form and made adherence to them more obligatoqr on t h e p art of t he State Offi ces . 

A E;eneral rule of thumb was annou.,"1.ced in the shape of a definition 

of ad justment: 

11 A case is adjust ed wh en t he employe r is in full compliance 

and restitution has been made. 11 (**) 

Simple as this definition was, read in the ~i gh t of field experience and. t he development of t he me thods and policies of the Comp liance 

Division it was pr egnant wi th mean ing . It was t aken literally and full 

significance wa s given ever~~ wo rd in deno ti.ng the. b asic p olicy of 

adjustment. 

At t his time forms of certificates of comp liance for both l abor and 

traQe pr ac tice compl ain ts, and agre emen t t o make restitution in labor 

cases, similar to t hose used by the qld, National Comp lianc e Board and 

the Co:np liance Council, were adopted for field use. ( ***) 

h~1ges wer e made in t he stru1dards of adjustment in t hat one and onehalf times the r egul ar rat e of pay or t he code mini mum, whichever was 

higher , was definitely stated to be the ffiin imum rate in computing restituti on for violations of maximum hours; ( ) w"'ld piece-wo;kers were 

reQuired to be compensated for all p lant hours during wh ich t hey were on 

their employers' premises and avai l able for work , unless t h e respondents 

were able to e stabl ish t he employe es' presence wns not re quired and they 

had prior no ti ce to t hat effect. (** ***) 

(*) Su··)\lJ_ ement ary Merno randu~'Tl No.1 to Bulle tin No .7, p . 4 . 

( * *) 

(***) 

(  ) 

(** ***) 

9861 

Fi eld Letter 193, p . 5 . 

Fiel d Le tter 193 pp . 8 , 9, 11, 12, 13, 14. 

Ibid. I p . 7 

Ibid., p . 8 
In Field Letter i 94 (J &J.ua r;y 18, 193'5 ) a furth er restriction wa s 

p laced on thE! ap plicati-on of standards of adjustment. A ne'.'v, d.efini te 

procedure wa s created for the a cl justrnen t of c a ses' with less than f u ll 

re stitution • . (*) Under p rior instru.ctions S"'C.ch sp.ecial cases v1ere left 

to the discretion of t h e State Office s on reco l¥n ~d tion and approval of 

the State Adjustment · Bo·Brd·s .. .. ( **) Th is n ew p:rocedure , . .however, wa s exchlsi ve ancl wa s designed. tq strengthen tne s-t andards of adjustment by 

m0 k ing the e xcep tions to the usual requir ements more difficult to obtain.(***) 

However, since tbis procedure tended to interfere with tbe State 

0ffices 1 practice in suspending action on certain types of cases where 

deemed advisable, and. adversely offected tb.e use of State and Local Adjustment Bo ards, it wa s not strictl~ followed b~ the field offices. ( ) 

In March·,· ·1935 the instru-cti:Gn-s r; reviow.sly issued by the Comp liance 

Di visioi1 ·w-ere·:. comp iled and: .in ld ed in the new Office Manual. ( ** ***) 

Inasmuch as "' there was no revision· or chaJ.1ge in . the standards of adjustment after Ffeld Letter 194,---8 -f""Lrrther discussion of the contents ·o·f the 

Office Manual · on this subject i .s· not deemed necess a ry. 

In the last few month,s of NRA there vvas a slackening of the strict 

application of these standar cls in certain -types of cases. This was evidne·t in the service trades a:ld in some other intrastate industries, especially in states where the co urts were not favor ably disposed to ward 

the codes. This app arently ·backward step in polic;;- WR S the product of 

·Doth expediency and e xperience. A furt1: er dis cission of this aspect, 

ho wever,_ is }) O s tponed -lli1 ti 1 consid.erat ion h a s been gi veri to the procedure 

developed &nd followed and study h a s b een ma de of the various influences 

entering into the historic-al 1~o tl1. of t:1e .Comp lian.ce Diviston. 

( *) Field Latter ·194, p. 2, et seq_. Similar procedure WE,J. S established 

for the 'Regional Co in:_pliance Co-uncils, Field Letter 193, pp. _ 6 and 7. 

(**) Field Letters 125, 143, . 148, S\1-pp lement a ry ~ .. 1emorand1Lrn No. l. 

See a lso P• 26, _supra. . . 

(***) n1is wa s indicated as the purpose by the following quotation from 

Field Letter 194 , p . 2: 11 ADJUSTr;ZHT O;F CASES FOR LESS T1:I.A.l'J FULL 

JESTI.TUTIOJ: ~ It . is the· policy of t h e ComrJlir.mce Division not to consider 

violations of labor provisions acijusted ex cept upon the p ayment of b3.ck 

wages to employees in the full amount Decess~y to mak e restitution for 

past violations, . in adcli.tion to securing presm~ t compliance. In s ome 

cases it is not fe a sible to mak e a d justments u pon this b a sis. The following procedure will· hereafter t:c:overn tile .s e ttlement of cases involving a 

depart""Li.re from the above pol.icy." 

( ) This is more fully discus:Sed later, :under those sections of 

· Chapter· V: relating to 1he cd'nrQronilsing- and dropp ing of cases and 

·the use o.f ."Ad ,justment- Bo ards. 

(** ***) Office Manual, III, 4110 et seq. 

:' .· .. 

9861 
( Au t!10r 1 s not e : I n t hi. hc.1p ter l ittl e h 1s been s D id onccrning 

t he cdju stn,ent of tr ade pr e: ctice viol·1 tions . Th is was done pur pose l y 

fo r s ever a l r easons . In t he first p luc e , stnndards of adjustment wer e 

never developed for tr ade pr uctice ~s es nnd f ar gre a t er number of 

such comp l a i nts we r e handled by Code At.: t J.1o r i ti es r at her t han by RA 

fie l d off ices . In most cas es in which t hey were concerned, the st at e 

offices ac t ed only in Rn adviso r ' ap~cit y to and to supp lement t he 

ac t iviti es of the Code Authoriti es . 

On t he oth er hand , e1nphnsi s ha.s been l a i d on t he l abo r phas e of 

comp l iance bec ause : 

(a) There we re an~ more l <'.bor comp l a i nt s t han tr ade_ pr ac t ice 

comp l aints fil ed and t :· er efore it wa s mor e nec essary to deve lop p ol icies 

and pro cedure f or t h i s t ype of c a se . 

(b) Si nc e l abor viol a tio ns f ell i n t o cert ai n we ll-defined ca e~o ies , 

wher ea s unfair tr ade p r actices were vari ega t ed both i n number and 

char ac t er, i t was more pr 0ctical to have a se t of gener al rules of procedure and bro ad poli cies for t he forme r c l :J.ss. 

( c) Clos e l y akin to ( b) , is t hat t ner e was no equ i table or pr acti cable way of mcl~ ing r e stitution for trade pr actice viola tions except 

where t he code had a provision for some sort of liquida ted .damages. 

Admi nistra tively, it was i mpossible to det ermine the amount of the 

damage occ a sioned by a viola tion,. and oft en difficult to asc ert ain who 

were t he i njured parti e s. Re stitu tion for l abor viol a tions, however, 

was a matter of computing back wage s due accordirg to the prescribed 

formulae. Tne aggrieved p arties were the employee, who was t heoretically 

comp en sated , and t he competitor, who gai.ned indirectly where the competiti ve a d.v&it ag e viT a s em~v d by t h e re spondent paying ba ck wages .) 

.. . , . 

9861 
- 30-

Ch ap t e r IV - The Orig in and Deve lopment of Fi eld Office s 

Secti on 1 - The est ablishmen t :of .. t emu ora r y offices. During the f irst 

f ew on hs after· the Nati ona l Indust rial Re c ove ry Ac t 'f"as signed by t he 

Pre si o.en t on June :16 , 1933 , a l most t:q. e en t ire en e r g ies of the NP..A ,-,e re 

devotecl. t o the t a sk . of co de making . Sinc e i t was soon s een t hat the 

slo•:v IJ r oce s s of f ormu l ating .. and apu roving co<1e s for t h e va ri ou s tr ,~o s 

and .inclustrie s would t ake many month s, t he r e wa s ann ounc ed i n J uly , 1933 , 

a em ora~J pro gram known as t he Pre siden t ' s Reemployment Ag r eemeilt. 

As 8. 'lart of this NRA prog ram the r e :we r e ne c essar y , first , an i ns~ e n ational nu1li c ity campaign, a nd, second , a system of ~m

tra t :L on f ol' the handling of comp laints and p e tit ions for exemp tion from 

the l~ee n t. 

Bot h these obj ~ti v:e s, it is clear, require d a l a r ge fi e ld fo :c c e . 

Because of the enorm i ty en d eme r gency nature of the task the NRA, thr ough 

an arrang en1en t \'Ti th the Department of Comme rce, utili zed a s t he core fo r 

such org'an iza t-ion t h e Di stri c-t Offic e s .. of t };le Bureau of Foreign and. Dome stic CoDmel~ce, which ha d lor:.g tw en eagagecl n ac t iviti e s for t h e promot io n 

of and_ ass ist ..Yl~ e to t:ra de a"'lL r..dr_s try ~ (* ) Th e ba lance of t he organ iza tion was then made .up of volun"Gary worke rs and agencies, including 

State and District Re covery Boards ; Local Compliance Boards , and VCJ.rious 

lqcal comm·i t tee s. 

Through conferences and oral a g reement betneen the t wo P.overnr11en t 

agenci es;·. -the Dis.trict Office staffs of the :Bureau 'i"ere l oaned t o NRA 

work . In this conne ction a liaison office was established in the Bu reau 

b e t we en NRA ·and. t he District Offices. In illustration of the act i vi t y 

of t h e Bu r eau in the NRA program, it ha s been stat ed t h at un until De c ember 2 , 1933 , employee s of the Bureau worked 11,202 days for NRA at ~! 

estima t ed. annual cost of $150 , 000.(**) 

In addition, many forme r employe es of the Bureau of Foreign a:1d 

Dome stic Commerce , who se services h a.d been t e r minated on July 15, 1933 

for economy rea sons, we re recall ed to work d ire ctly for NRA on i ts payrolls. 

On July 11, 1933, the District fu anage rs we r e ca ll ed t o Washing t on 

for a t wo •re eks p eriod for the purpose of instructi on and traini ng i n t h e 

n ew NBA pl~og ram. It wa s during the l att e r part of this confe r ence that 

the NRA ru. ign "-''as announc ed and a ctual r esp onsibility fo r fi e l d organi zat ion2.l e.c ti vi ty was virtua lly _pl a ced on the Di stri c t Manag e r s f or the i r 

r e spec t i ve -districts.(***) Th e 'l"•ork of t he Di strict Of f ices during this 

p e rio d anci. ·until the crea tion of t he Comp liance Division on Octobe r 26 , 

1933 ~r Off ice Order 40 , was almost entire ly of a p romotional chara cte r. 

It is to be remembe r e d tha t t h e Local Comp liance Board s f or t h e handl i ng 

of NRA c omp l a ints 'rrere not begun to b e e st ablishe d until after Septej.1be r 

( *) 

(** ) 

( ***) 

9861 

France, 11 Role of Bureau of Fore i gn ru1d Domestic Commerce in NRA 

P r og re:un 11 (De cember 6, 1933), pp. 1 , 3 . See fil e s of :K . H. Engle , 

Assistant Director, Bureau of Fore i gn and Domestic Commerce . 

Ibid., p. 9. 

Ibid. , p~ 3. 
- 3l11, 19 3~3 , c.nd thus the comp l iuncc hf' ""0 (')f th ~ worl-: began only about 

one P10nth before the Distri .t Manr\....,a rs "e r e mf'de Dic;,trict Compliance 

Directors, a week prior to Of ice Order 40. It was not until October 

and 1Jovember of 93~5 thBt most of the l ocal Compliance Boo.rds ~·e e authorized to ope r e te . 

Be '3.:tint:: in mind this history of a ctivity of the District Offices 

of the Bm .. o£:u dur i ng t he initial months of Ni.iA , it is not snrprising to 

no te th.:-.t on Octobe r 19 , 192:3 , the .Adm ini st r at ion , vri th the app roval of 

the Sec~etary of Comme rc e , appoint ed the D~strict Manage rs as District 

Compli ance Dir ectors in the fielc. organi zat ion of t wen ty-six offices of 

the n ew Cornplinncc Division vhi ch was about to be established.(*) At 

this time t he r e was a l so issued a s e t of i nstructi on s to the e~ District 

Compliance Direc tors on t he h<:tndl ing of code comp l aints . At the time 

of their appo intr,Jent as Di strict Comp liance Directors, the Dis trict Managers wer e furl ourhed_ by the '3ur eau for three rnrmths and place d on NRA 

payrolls. This a rrangement was intended only to be t emp orary pending 

the estr,blichmen t of a pe r man ent g overnment co de compliance system, rrhich 

iO!as finn.llJ d<!l'ne in Januc:tr y , 1934 . On the latte r dc>.te the r e v-•as created 

a syst er: o Sta te NRA Comp liance Offic es and St a t e Directors were aypointed from out si de the existing or-gan i zation. This n e',' syst ern ':Vas initiat ed 

'i"7i th fl. mee ting of all Sta t e Directors in Washington the first of February, 

1934 . At this meet ing , ~"hich lasted several deys and v.ras com-pose d. of r:. 

series of ::; l~o p conferences and C:.. i s cuss i on s , the State Directors we re 

info:;:rnec_ D.s t . the gen e r a l outline of organi u·.tion and policies. Spe cific 

quest i oj:ls :ri th relation to c omplia nc e 1fTOrk nrere a lso taken up. In adc:.-

ition, the State Directors had. been instruct eci in advance to bring 1ith 

theii1 memoranda of loca l field p robl ems for joint discussion. Whil e the 

advantages of this typ e of me e ting a r e obvious, most of the value nas 

lost becau se the Stat e Directors ·-ere n e'!l!T to NRA C01'1p l iance work a,":'ld for 

the wain iuexpe ri ence d in 'industrial r egul a tion. 

·rhe l~ee. sons, other th<m the n eed for a full-time g overnment agency 

to acljust compl a ints, for the separ a tion of NHA District Complianc e 

Directors f rom the Bureau of :t'ore i gn and Domestic Comrne rce are summed 

up as fo l l olj)'s: 

11 It is felt that as comp liance .directors t he district manage r s 

shoul c. not be a ssociat eC.. with Buforcom vrork and thus 8..VO id any_ critici sJli vrh i ch mi ght be directed at these men if they continued as dist rict office managers while a cting a's compliance di.rectors.ll(**) 

Thi s statement took recogn ition of the fact that the wo rk of the 

Bureau had been chiefly the p romotion of trade and r el a tions had been 

almost entir ely with industry rather than V'ith labor. Also, in NRA 

work , the Bureau (')ffices h a d b een a ctive in stimulat ing the format ion 

of t r ac3.e c;.ssociations and othe r business g roups, and it was therefore 

felt that accusations of p a rtiality - mi ght come alike from labo r and 

(*) In NRA St udies Special Exhibit Work lvtat e rials :#77. 

(**) FrF\llce, 11 Role of Bureau of Bore ign and Dom.estic C.ommerce in N3A 

Pro{:;ram11 (December 6 , 1933) , p . 75. S,ee files of N. H. Engl e , 

Assistan t Director, Bur.eau of Fo:r e i gn and Dome stic Commerc e·. 

9861 
- 32-

those. pc:;_~tions of -ind\1-f.tr"''J not orge1n i ze d ·under these tra cie as soc ia tions. 

:rhe i r:1p ort!3.nce of t he influence of the Bureau in shaping the polio ies a;.1d J:Jro cedure of the . Compl ~ce Divis ion 1r'ill be shovm in succeeding sections of this and in the following chap ters. It is sufficient 

to lJoint Ol.}_t here that prior to the State Office system the field Fas 

almost ntil~ely staffed_ by forme r :Bure au employees. During the remainder 

of complio..nce hi story a.ny ·key p osit i ens, both in the State and Regional 

Off ices, uere filled by these men. 

Section 2. - Internal Organization - ec:.rly cleveloT)men t. In o rd.er to 

underst a:10_ prop rl~f the acministrative efforts of N'RA it is important 

to knon the mechanics by 1hich it VTas sought to accomplish full complia.nc e rri t4 the law. For just as the successl'ul admini.stration of any 

new and c omplica ted set o±· ~.:-e ulation : such B:S _the codes, must ultimately 

de Jen c1 on ~oublic ;und.erst andins an-i support, so 2.-lso is it based on the 

pract.ic?,l .e.S}Je cts. of ap:pii.cation • . 

·J:lhis naturally bring s us to a cor..si de ration of the internal -rrorkings of th,e . field offices., 'the pr:lmary rried.ia of contact with 'Qusiness, 

so as -to --view the facilitie s fo.r eG.ucating employers and bringing them 

into conformity with the c--0des. . 

Dig ~ess ing for the moment, it is imp ort ant to r emember what has 

beer),. -po in t E: d out befor ~ that the field was distinctly non-homogeneous. 

FiE?l d_. of.:fices va ried_ widely in their methods of a_pproach to particular 

p roble:;s, their internal organization, and their very fundamental C0l1Cep t 

of adju9tment. These variations, of course, were due primarily to cH fferences in :p ersonal~ ties, anci in soci a l and economic outlooks. rhey 

wel~e a lso caused by the nature of the off ices 1 daily associations V7i th 

business, labor and_ other outsi cie influences. 

These .. differences in field off ices 'IJITere much more ma rked after the 

creation of the State Director system, prob.sbl;.• because the District 

CorJ:)lian.ce Directors h Eri . served. toge ther as District I11 anagers of t he 

Bul~e u of Forei(?;n BJld Domestic Comme rce, and the r e fore had a fairly 

ston<iD- l~c i zed backgrollnd.. ( *) · 

\n1en the Dis trict Compliance Offices were established by Office 

Order lio . 40 (October 26, 1933) ,(**) their personnel consisted in a District 

Comp liance Director, his -assistont, a legal adviser (to be ap oint ~d) , 

and clerical and stenog r aphic hel p u(***) Legal -advisers were appointed 

some two · or three weeks la-ter.(****) Shortly thereafter the larger and 

more . i lilp o·j:·t a.n t offices were ll01i'1 ~' Cd. very slight .increa ses in personnel, 

usuall::· i n conjunction with the local Corr t:~ lianc e Boards. The appointments 

( *) ·· In spite of this h e terogeneous qua lity • for · the s ake of co_nveni ence 

· the ·field must ·be spoken of as a unit, excep t in particular case s. 

(**:)The District Compli'ai1ce Directors v·ere actunlly appointed on October 

19, 1933 by letters from the Administrator. Instructions on adjustment nere issued the same day and amp lifieC::. in Liaison Circular 75 

(October 20, 19 ~3) . 

(***) · Lia ison Circular 75. · · 

(****) Fi eld t~er 5 (November 10, 19 33 )~ 

9861 
.. 

were ail on a per diem b sis since the system of or ru1ization was reg~rded ~s temporary. 

At this time the r ·a~; no clear de ·inition of ciuties either by 

Washingto_ or by the fiel d f~ices themselves. Generally speaking , of 

course , the District Compliance Direct ors had been charged with the responsibili ty of obtaining compliance r,rri th the various codes and (working 

in conjunction with the local Comnliance Boards) ,,ith the President ' s 

Reem:plo~:ment At.g:r eement. (*) 

Actually , the Di strict Compliance Directors l aid stress on nublic 

r elations \:o r k , r ather than adjust ment. Thus, their energ ies and the 

time of their a ssistants, v·e re devoted prima rily to fo st e ring r el ations 

ith tr de a ssociations and other busine ss g roups, and to a l esse r degr ee , l abor organizations. They also spent consi de rable time in assisting the organization of local code authorities and in publicizing t hrough 

the p ress, by r adio, and by ~ublic addresses, t he benefits and a ims of 

NrtA, and in a ttempting to stir up a fervor among business men for support of the Re covery Prog ram. 

This i cl.ea of the District Office pe riod tha t NRA compliance v:ras 

almost exclusively a selling campai gn was a natural· curry-ove r from the 

earlier feverish days of the President's .::\.eempl oyment Agreement drive. 

3ecause of the na ture of this activity; and t l:.e l a ck of instructions 

from Washing ton, it is next to impossible to det e rmine with any degree 

of accuracy the functions of the various field officials, except as 

bro2.dly st a ted above. 

There is a partial except ion to this lack of definitions of duti es, 

honever. The Legal Adviser, it T."as fairl y" cl ear, was to examine complaints of code violations for legal suff iciency and to pass on all l egal 

questions arlslng in the off ice s, which did not require final interpretation ~; of codes.(**) 

The assi gnment of respons·ibility to handle and a djust complaint s , 

which was p roperly the prima~J duty of the Compliance Division , was 

left in a nebulous state of disp osal. Adjustment of complaints was 

usually left to members of the clerical staff, assist ed sometimes by the 

Legal Actv i ser, and the District Compliance Director or his assistant, 

in a so~t of hodge-podge a rrangement. Again, practices in diffe r ent 

fielc_ offices varied so greatly that it is imp ossible · to generalize .ith 

more thR.n a fAir deg ree of accure.c.v. 

_(*) Office Order 40 ; Liaison Circul a r 75 ; "Regulations for Adjustment 11 , 

etc. (Octobe r 19, 1933 ); 1J.- illia.m H. Davis, 11 N. R • .,A. . Plans for Code 

Cor.1p liance 11 (December 5, 1933) . 

(**) 11 3.et;,llla tions for the Adjustment of District Compliance Directors 11 

etc. (Oc tober· 19, 1933). Office Order 53 definitely placing the 

' authority to issue int erp r etations in the Industry Divisions \7as 

not issued until December 29 , 1933 , but it vras generally unde rstood p rior to the date of that orde r that t h e re was no authority 

in the field to issue final ruling s or interpretations~ 

9861 
- 34. ... 

Suff i c e to say 1 tha t in the bett e r field offices 1 r.rhich later ,-e re 

to lJl ay c:-.:..1 cr eas in ~r i m:'J ort ant role in shaping g eneral policies of 

acl justrnent a11d p rocedure 1 a lthough organization vras undecided, a ~tron gc r 

as is 'a:s·: lai c'\. on t he c.?.djustment function. Thu...s, a f evr of th e Lec;a l 

Aclvi s ers -·e11t b eyonC.. t he i r r eguilia.r d.ef ined duti e s of aC. vising on l ega l 

questi rms, to delve into the a ctual adjustment of cornpl ain t s. Tn is 1.•as 

a lso t :L"Ue with a small minority of District Com:9lia nce Directors end. 

theL:- o.ssistants. This fact is imp ortant because f rom this class of 

fi el o. :.Je rsonnel "Pere t~r drarn a number of the Labo r Comnliance Off icers 

ancl Tra cie Pra ctice Compliance Officers, and, with the incep tion of the 

Re ~:s ional s;yst ern in December, 1934, some EJ. embers of the 3.egional staffs. 

This pe r sonnel angle is mentioned because it was p robably the most i r,r 

p ortant i n ternal influence -on the development of the Compliance Division •. (* 

Section 3 - Development of internal organization under the State Office 

system.(**) I'ollowing the creation of the State Office sy stem, discussed 

under Section 1, the re nas a marked development of· the field staff. 

This ':·as forecast in a st a tement by the Na.tional Compliance Directol~ on 

December 5, 1933s(***) in nhich he c escribedbriefly the ne'lf! organization along state lines, say ing tha t each State Director vrould h a ve a sufficient st o.f'f of assist ants ond a djusters to d.evelop the facts encl.adjust the com:olaints which n e :te f iled. Unfortuna tely, the requisite f'ull 

comylemen t of personnel was ne ve r rea lized. 

The staffs of the District Offices vrere absorbed by the neVT State · 

Offices. There '"'aS .therefore, little difference between the t wo sy stems 

at first, except in form. However 1 since the St·a.te Directors were 

pra cticall:- all loca l men, and ·cho s en from many V'alks of life, the injection o<· new personalities soon me..de the Sta te Off ice syst em novel in 

f a ct. 

The Sta te Offices were int end.ec to b e a "pe rmanent 6 overnmental 

reg iona l ac;_justrnent sy stem.u( ) It is not surprising , therefore, to 

note tha t the plan provi.ded: foil' a . mere comp!le.t e· ·and- co~lex organi zation. 

The District Gompliance Directors be came Office Lanage rs in the ol d. 

offices aad equivalent p osit ions "~J ere cree.te d. in the n eV'T offices; the 

Lega l A0.visers a.ncl the clerical and stenog r aphic stt.f f s continued. in 

thei r san e c a})aci ties; and in a dci i t ion, und.er the Stat e Director, vre :te 

a 0.c1ec';_ the lJosi tions of Labor Corn liance Officer, ·Trade Pra ctice Co:E:.: lience 

Officer, . and. several field ad.justersl(** ***) ".'}hile trhe se latter Jositions 

(*) Nevertheless, the salesmanship featu:::-e of comp lianc e vas a l rrays an 

im ') J.~ tan t one. ·There was me rely the c;.uestion of plq.cing it in its 

p rop er relationsh ip to the a djustment of viola tions. 

(**) The first instructions to St a t e Directors, rel tive to their fmlctions anci the internal organ izntion of the f ield offices, .- ·ere containe ~ J..ii letters sent to them on their ap·)o.iritment by the ACl.Llinist:L·a tion. 

(***) ;.'iilliam H. Davis, '

1N, ?.. A. Plans for ·Code Compliance." In NRA 

Stuclies Special Exhibits Work Ma terials #77,. 

( ) I ci.em (** ***) Bulletin No.7, p. 11. 

9861 
Field 

Ad uster 

I 

I ______ _J 

Clerical and 

Stenographic 

Note: Compare this chart 1li th the organization scheme as 

later developed in its application (intra. pp. 59 - 62)~ 

9861 

Pere cre te~ at the bePinn i ng of th~ State Office ystem , in many inst<mces some .re r e no t filled io r c. vo r a J ,-eek:-, an d. months after that , 

and, in the case of ~mal ET office s, the functions of se ve r a l sitions 

we r e alr:nys ex e rcised ·by on e man . 

3ull c tin No . 7 marked the tr ition of the or ganic deve l opment of 

the Comp l i:mce Division fr m the District f f ice C~ ge to t h e second 

period.. The i dea the.t the ad,iustmen t of complaints, as against a mere 

sales an~Ja n, 1::a.s a necessary in ed nt of compli ance , was g i ven real 

impe tus. In crea tine an enlarged staff fo r t he fiel d offices, :Bulletin 

No. 7 O..es cribed the functions of th va rious n ew pos itions in such a way 

a s t o l eave little room for •ne r e puolic r lations ,-r ork , except as incidental to the adjustment of complaints. (*) 

The Ste te ffi ce internal orgflni zc:tt ion was provided in Bull etin ~'T . 

7, ':"rhich -.;as amplifi ed by Field Letter 69 , issued February 24 , 1934. (**) 

he p l an p rovided that the staff was to be headed by the State Dir ector, rrho served in a dua l capacity as State Director of the National 

EJ'Tlergenc;y Council and Sta te NRA Comp li ance Dire ctor. In the latte::..~ p osit ion r~e Pas charged v· i th the clut~r of obtaining comp liance 1!" i th all code 

p rovisions and with t he administrative responsibility of the office ,( ***) 

al though in a c t uality these function s v""~e e performed by the State Directol~ 

in ou t Ie~ offices. 

f ext in general authority to the Sta te Director was the Off ice 

Hianat2.:e r (-.1hos c title was cheng ed to Executive Assistant in Field Le tter 

69) . His o.uties include d overseein.;:; the g eneral functioning of the office; hc=-ndlin,-_, a ll matt e rs of office routine and details as to spa ce, 

personnel and equi pment; assisting· t he Sta t e Dire ctor in maintaining 

relations t:i th the press and in pu.olic relations v.rork ; serving as exedutive secre te.ry to the St a te Adjustment :Board. ; han0 .. lins all trade practice compliance ma tt e rs whwre there "''as no Trade Practice Compliance 

Of f icer. (****) 

(* ) . :Bulletin No . 7, p . 11, IITh e se State Directors are charg ed 

r:ith the duty of ad justin,~; , r·heneve r possibl e , all code viola tions 

not adjusted by Industry en d. to that end, unde r these Regul a tions, 

,:rill do everything 'Fi thin their :power to s e cure compliance through 

education and explanation"; also, 11 Until --(field ad.justers ::..~ e 

app ointed), the Labor Compliance Offi cer anc. the Trade Practice 

CoQpl iance Officer may ac t as their o~~ adjust e rs. The Office 

Manage r and the Legal Advis e r may a l so e.ct in this capa ci ty. 11 

(**) On the opposite page is a ci:1r rt sbo rin g the functional organi?::ation 

,..,hich ':"'a s e stablished. 

(***) N. ?..A. Bulle tin No. 7, p . 11, 11 The Stat e Dire ctor is r esponsible 

fo r all action ta}~e n by hh: "' t off U.."'lder t hese Regulations ano. may 

.:12ke such office rules a.s he cleems desirable for the supervision 

of the a ctivities of his st a ff.'' 

(****) Field Letter 69 , P• 1. 

9861 

- '37-

:rhe Lebar Conrpliance 8f:dcer was charged with all matt ers conc e rni ng 

)J ·ll)l i encc r·i th the labC'r provisions of the various code s, and r epo rt ed 

<J.ircctl~' to 1ihe State Direc"or(*). 

Al tboug,h not so definitely st ated, it generally understood that t he 

Tr2~e Pra ctice Complianc e Officer occupi ed a position similar to t he 

Labo r Compliance tff icer, 1dth res c;~•t to ~r de p r a ctice complianc 

matters. 

Unde r both labor ani trade pr2..ctice complianc e off ic ers was a staff 

wf Fi el d AdjustPrs wheoe duYy it was t~ inve sti gat e and a~ st all complaints assi gne d t~ them by the Labor and Trade Pra ctice Compliance 

5fficers.(**) 

The1,e was also a clerical and stenogra.phie staff, whieh was under 

the sup ervision of the Office .Manager or Executive Assistant. 

·rh.e osition of the Legal Adviser with relation to the t wo Compliance 

Off icers and the aff~ce Manage r was never clearly dete:rn1ined. Generally 

pea.k in~: , he V'Tas supposed. tn report direet to the State Director, but 

a~vi se d all members of the staff on legal matters. In addition to the 

functions of rendering ndvice and opinions and examining complaints,( *** ) 

his duties included the adjustment of complaints,racting ( ) as l egal 

advise~ to the Stat~ A4justment Board, (** ***) and preparing all unadjusted complaints f•r transmittal to 'the National Compliance Director 

for further action, (******) 

In aQdition to the regular staff, there was a State Adjustment 

Board, composed 0f an impartial ehairman and equal rep resenta tion of 

employees and ~mployers. T.his body's chief function originally was to 

hear appeals from deeisions ef the St a te Directorts staff and to determine Qisputed questions of £act~ . !t acted purely in an advisory capacity 

to the Sta.te Directnr. It• s members s~rved without pay. The functions, 

develo;')ment and us•s of the State Ad.justment Boards will be treated in 

detail later. 

The ~embers of the staff er~ stated by Field Letter 69 to have 

distin.ct and. separate duties. The State Director was charged with deter:!in ing the necessary lines of administrative authority to insure fulfillment of his responsibility of ~btaining complete code compliance 

within his particular jurisdiction. Thus, it is seen that the original 

pl an of o:;:ganization provided for a lator compliance division, a trade 

p r actice compliance division, and an office management division, all 

heacting UJ.l to and under the C.iredt supervision and authority of the State 

Director. It should be understood that these &ivisions of internal organiz.;>.tion related more to funetioRs than personnel. 

(*) Ideo. 

( **) }Yl_:.lletin No. 7, p. 19. 

(***) Sll ra, p. 23. 

(  ). B·o~letin No. 7, p. ll. 

( ** ***) Ibid., P• 1~. 

(******) Ibid;,' pp. 16, 17, providing for the proc·edure on unadjusted 

ca ses. It was U..l'lderstood that this was the function of the Legal Advise r, 

9861 
. , . 38 L..: ;. '!( ··: 

.. , . . 

' . .. , .. · .. ... 

. . 

The appointment of the n ew p ersonne l, . e-?C cep t t h e La b·or· Oompl i ance 

Officer, was vest e d in t h e St a te Dir e ctor, sub.iect to the ap:proval of 

"' '-

t h e Co pl.ian~e Divi siQn · i1~ Wa s:Cling.t on·. ( *) l~ Labor Compliance Officer · 

was seiected by the· :RA and t :'-:le U. S. ~: ep art ent of Labor jointly , the 

latter erie~r larg ely i ufluenc i ng t i1e choice s . Theoretica lly , t h e · 

appointment of Field Adjusters was !1lade by St a.te D;i.r e cto rs· u pon t h e 

advice and recorn.:11 endations. of t h e· Labor Co mp li?P ~e Of.ficers·. · (* *) · 

Actually ,- Field. Ad.justers ,we're a:ppoi nt ecl' by some· State Direct ors without 

such .. recommendati9ns and '":'i thout rega rd ·to. the qualifications of t n e 

appointees to fill t h e positions. 

' . 

It is quick l J apparent that such ·a· situation wa s inherently troublesome for the Compliance Division. This first i mpression is justified, 

for ther·e l a ter · develop ed out of t :hi s ibl~ confli'ct of authority 

decided and serious rifts betwe en t il e Labor 'Comp liance Qff1cer and the 

St a te Director in many of the .offices. 

' " 

T'nis internal disrup tion .wa.s h eishtened by r:t sometimes violent disagreement on adjustment p olic1es ." ... Since k ":e. ·state ' Directors, by virtue 

of their functions and. e:q.~i~l po si bilities, had litt·l€.' to. do ·with . 

the ever~T day experience .:c)f h andli.ng cbmp laints and makfng, "adj,l,l.stmen.ts,. • 

they tended to underemph9s·i ze the. i ;:.nportance of the restJ."t-hti:o··n· eleme nt. 

This situation, of course, greatly h ampered the effie:fency of· those 

offices in which it existed. It .was ·parti a lly ove:r:come by ·oral instructions from NRA Field Re res~nt tives, ·. traveiing out of Washing ton , 

Virtually placing the entire ~e9;p 0n~i bili ty and. a ctual · authority for the 

selection of Field Adjusters ~n the. Labor Compliap..ce Officers·. ·Th is . 

action occurred in the late spring . ·of · 1934, 'just · p receding or. about . the 

time of· the issuance of Field ttt?r 125·, which ~ve officiq.l recognition 

to the i,mportance o'f t he restit l1fio ~ element in .a.djustmen t. ·. · This .development, then, · rea lly b e long s in the b egi nning of t he third phase of the 

Comp liance Division's history. 

It must here·' again be r e iterated with emph a sis · ~h t the ·met amorphosis 

which has .b-een jus·t c'tescribed did not · t ake pl<:~. cE:l ... ·in 11 the. field offices,: 

or probably even ·in a ma j.ori t~ of them. It ~s· i mpo.rta ri.t to r emember 

tha.t in a f a ir proportion of the field off ic'es· the s t a r"f was more unified 

in its policies of proc.edlire and a djustmen t, hi~h · were reali s·t'ic ally · . . -,:: ,•( . defined. Selections· of new p ers onnel, partic ul rl~r . Field Adj usters, . and 

the administr a tive organization· r e flect ed the b a lanced judgm-ent' of · t_he 

entire executive sta ff. IIi contr adistinction, a lik e -.. numbeT of' 'fi eld ·· · 

offices did not f a ll i n t'J.1. e first-n;en:tion ed " dissension :class11 .b. ~cause . . 7 

. ,. . -~ - " ~ ' . . .. ,,. . .. . . . 

(*) Field Letter 66 (Februa.r:r 20, 1934), p. 1. . ) . ·: · · ·. 

( **) Lett er of J anu a r y 1 8 , 1934, from Do n a ld Rens h::>.w, Fi eld .. Li a j.sbn .' · 

Officer, Comp li ance Divisio n , to t he various St a te NRA- CompliailCe 

Directors, "We do not co n sider it a dvi sc1bl e to app oint any-' Fieid Adjl:J..stJ3rs 

f or ;"our office 1mtil t h e Labor ComJ).li a;.J.ce Off i ce r has b een assigned t o 

you . He sh ould b e of inva luable assistance to y ou in helping to select 

proper p ersonne l for this i mportM t ph as e of t h e work." I n NRA Studies 

Sp e c i al Exhibits Work Materi a l s No . 85. 

9861 

.. 
- 39-

the a.bo:..~ Compliance Off ice rs, or other subo.Ldinato members of the af:~ , 

were eith~r ~~e r in their convictions or not inclined to a p rogressi ve 

. development of field technique and field policies. 

The rift be tween the Lc.bor Com:.oliMce Off ice r and the State Director, 

ho\: ever, occurred in a suff i c i ent munb er of off ic e s to rank it as an 

important situa tion since out of it caJne a. ma jor transfonnation in t he 

internal organization of the field. 

9861 
- 40-

So c t i 1 '""~ - L8. CP r c;-n _.T'~" ~~! f ;_' ice Syst em. 13y t }le be-

· ... :!.. .<_ 'J .:. -c !-,3 ~u :r:.e r - ;f l'. :? , ~E C:,·:--·l i r,.i1CtJ J ivis i Jn :.12.C )r ~ec. 

f ::1:c i·-:. its .:_ :- c cv : l 11t i ;·- . It u .. .j': .. :.~ t Jffi cie.l l, - t::-_1.:c:1 :Jc; ni ·:~ce 

L' -1- • • ri. ' + 1' , . ' , .1.. , .1.. ' - t . 'J .L '""'-0 C.1c::.n:;es l :·. a .., JUSt r ,cn " :? J l CY a nc __ :r·r J:-·•U.L c_; :."- uC'CL fl u".:•'C..<J.r c...s J b e 

f olJ.·y·c c .. -b .c t l1c f :.. c- 1···. i ·_ t~1e :~ .ju -. -, t :. f c-~E:.. vi a lLti -::i s . ~- e e :;:-

lJer i En ce :;; ;:C 1

1

-:JP._ i n C)l-;:"tj_J l i a.:.".Cl3 c- ~r:t :c <:. -: :..1 7< ·( o~ :. l t ") cr ~-s t .. e 

\. _ !:: •.ke .1e s~ lv ~ f r lt in t 'i1c s e .ai.1f1

. c c rt 1 :- 1 ..... r J~ c r e f )r:ns . 

L1 VJ&.s hL1gt ::.n , tlw r ..... w·:s c r ecLte ( .. L -£ :i: ic c 'lf As £. ist-:.I:t Ac't.;ni !.listr::.t Jl~ "' r Fi ell- AC:'ministr- ti:Jil , v;hJ s c .:;.-ut ;~ it • :c'. G t ; sB~ vi e CJ::Tt1 li.:--.::ce 

a c tiviti e; s 2.~ t .. t J c cnrc' .. i nc>.t e t:'ne e f f 1rts :d t hE. C::mplia nce Dhrisi Ji.l 'iith 

t ho <~ ;; • C:Ll c'i. Liti( ati :·>l Divis L .i'ls . (*) s::·1e s _rst er.:, ~ t::..'e.vollir:.c; :ii c l C'.. 

Ro;Jr c s c ::.1t 2ti·1os Jf t ho C·J:1p lie.J.1Ce Divisi "' j'l , t o El'J r o cl :; s c l y su:· .. e r1ise w 

fi e l C:: .. st,"'.i -.;_· nc~ t o b:rii.·;.,:::; L !t o !:O. 'J rc ti Ja G r e 1a ti ':':1sh : · wi t :1 t he . ashL ·:;t o:;. 

st c.f f , rr.:-1s c'1.ove; l o;1eC:. i. ;: ~ c -:-c, te i:,1t o ic~ c: :..· us e . T:1us, L1e P.. i!_Gt :::1 s taff 

J f ~1e: c"amp J.i anc c Divisi on, as vve l l <::s ::_ :ene r c· .J _ _ 1C::lLq_uarte :ts ; f ~T?,A t J 2, 

1 e "' !='. e ~ ~ ,, r r n e u ·- _ -'- 'c~ v , 

Tat;e t :'!1t: r wi :~1 t h ese C:. l. :::·~ :Q:, t t : L: ;;;l. ~L '. ') ~: came c n..s.:v ·::e s i n 

1o fi e l c, s t c: .. ff • .b.C'.. c'. i: l ::::' ::.. 8 l l-_ _ :,_,-,j-,1::- -:;or p o s it 2_ "J:t'.S ·-ac r e ere .t ecl t o 

atte:rn) t tJ f ill t l1c cr ----:.:: '-"' · f ·r ;;1.l:. a,·· .c ql. .a~ c: st::1.f f f')r ~he invostiq, ti Ji1 ailC .. ; t,diu st;·;'.c :(l t : f vi Jl:.t L .:1s . 

The l". C1i' Pi e l ( Re:_) rG '-O 'lt- :; i 'le S ls:J 'll:.l.r'i-=:rtJ::J>.:: t ; r e -tr a i::-1 the st?.f f s 

il1 t ile v a r i ; v..s fi e l C: .. ·) es -'·"11:. t J rn:t :.~J G ~K~ quali t y :: f tho existLlG; 

p e rsJ:l_e l. ~'ls q_ue , SJi"18 re- c· ,c ~ W8'.' 0 J·'RC: .. c . T~1is i nr;J r :;v euent 

o f t h e qua lity e. ~ si zc :; f th: f i c L'. pe r s;11r:.e l 1ccurred t hrou c h t he 

su er ~~c.. f a l l f 1931 . 

In t he c-) J') in me:~ t ; f :1ew Fi e l d. AC'.. jus t e r s , t :1e labor Complia nc e 

Off i c e rs 1rTGre c;ive:<l m:. :.."•: v oice , a lth -::1.1£:) 1 ,_; ':' ut ::; ri ~- t c ap }) ) i :J.t pe rs J::..::1e l 1 

:J i1 L w a:_,. ')V C~ l 1 :. t :'lL. Yn n.. ce Di visi ; "_ i n 7lrtshL :.c t J:l , r en18.L1cC' .. in t he 

Sta t e Di r c c t Jr s . As ·,las b oc i.: 1)r 3·ri :·-_1sl ·.J:) L l t c c'". ut , t-'.e r e '.'las o. ~· 

on t :1o p c..·-r t - f tl:.::: Fi R3p i. ·es c :.:lt.::.t i v es c:.:n.:. t:u"c ::-" i e ]d 'Br.c.ncl1 -:, f the C::> n -

p l i e.:..1co :Ui7 i si::!l:. t :J <:.. ~..:e t::C ~ L::tb 'J :- C'Ji . .'J}i l i a-:. ce Of' ic e:..~s ut J~1or s L: 

the ir :."~ '>rticu l -.'.r f i e l cl_ . ( **) 

The omphc s i s JE t h e l a .. iJ Jr c :JUJ.J J.l C1:,1c e s t a f f s i :"l t he ~: nizati 1 ::; f 

tho fi e lc1 .. ws s :i.nc r er.s e C. by l. .~'-::;es i !l t h e ;1e a -_s of t l1e ·~~-- ri us office s . 

Du:c i-:.

1. , _: : tl".t il~ t J!e ri·x1. ·Jf C:. ev o l :r:"1 r:; e :1t, fr; n r :;ugi.1l y Ju:.w , 1934 ' :,_ , · u o 

t 'J t l1o L :c r u ·.sGl,_ ac ti7ity :;:f c :Jati --·J.l a l El:ic r r;e ncy wJ.cil, a nur.ibe r -f 

St a t e ct 'J l~ s s e rve (. t he i r N=.".A C.'J!·:::e c t i :> J:.s t J c .. e v ot e t he ir enti:..'e time 

t0 t rlG ir l·i . :T.:; .C. t:.uti e s , .c .. j:: .. :. f ·J::.' e::: pc r s : j1a l r a<::.sJns . :B y l ; v ember, 

1 934 , a 'J!.l~)E'!. iv ;;r :-~a. ll umt1 1~ Jf "J ri.;i nal Sk·. te Di r e c t'):r' n.p "iiilt ce s 

'** ) U , C l ' . . . . , - (- • .,;~ T 1 ; l 'J'7.''Z ) .... t \ :i.1 l C l ' ··r , l l.j_lc ,: .Jl'll Sl ' ":1 . v u Y . .':" n · t.l!:l L' ___ , .,u ~v , . .JOJ rn.-- u , rs 

9861 

t 1 ~1l. L · S~,..c i :·: , ..: ~~ .r:1 i·_ tr t.. .. :.. ..,r~ ; '= . 

Ctt.::wi · :. , 1904 ) k· · -1- FJ. c.l\.":.. . .S c c t i ·,u was ma.t' e 

Offi c ,· Lemor a ndum l80 (April L:: , 1934) . 

Ui1C c:.~ Offic e O:l' · c r :~ 

the Fi ol \

1 ::S :i.' .:=tnch ; sea a l s : 
r e nainer . 

In fil _i 1g t l1GS"' ·.r-. c ti1cl, ... t '1 J"ro li ul CO ·~ l ·.r L, i -:m p ursued tho 

policy Jf aF •Jinti 1;, t ' lC' .. 1.:; 1.( _r t:w Jf" i cc fr ) 1 1.1onb r £ )f tJ.1o nt a f f . 

Thu , LabJr C1mpli:mc f . ic0:r.:: , Tr ".dc p, . cti co CJ l_J lin.nco Of fic cJ. s , 

:Executive As_i tant , and , i~ _ tC c . s s . Lc 0 al Ar'..viscrc:; V''eTe :ol .... c od in 

ha ~:e ... f the va i JUS f . icc . as . t o :!R.A Jr li 1.;1ce : irect Jr ... , anc'. l ater 

as St:tt ]:\A CJmpliancc ffi cers , ni t!l r cc:;ul t nl1t chao. g es in the remainder 

o f the executive ctaff. 

Si:1ce t:1o r o,JlacG:'len t aJr JL1t:non t s P r G , .::1c:'c Jn t he r ecomten(,'\tions 

of thJ c pers .Jns in Washint;t n wh J be liev eC: in efn}Jhasi s m the l a.b'Jr 

c om1Jl iance tEt.fl s , i t Vl'as natur·-. 1 t hat t }lis . c~e :1 sh::mld be ca.rri ed out 

in t he reyrun:pL1g Jf the L1t e:cna l o!'ga1izo.ti )n Jf t he fi e ld 'J ffic es by 

the new Di rectJr • 

Conversol , a!ted t J tnis tact Jr s t he ~acrcas in~ r e l ative imp'Jrtance Jf the Tra.c:. e Pra ctice C::L.l)liR.:i1CO o.r :... icers . Witn t he 'J r i ganizo.ti Jn 

of cJcle authJritie t J ha l€· t rac.'.c \JTactico vi Jl ;.ti 111s , the functi Jns :Jf 

the Stats Ofrice , a s t J this t y•e Jf case , t entec t s 'J c advis'Jr y in 

natur e and SUl) · leme n t ary t:J t!lc c JC.e auL :) ri t i s ' ef .c'Jrts. 

9861 
- 42-

While the positions in field offices r emained virtually the samet 

with increases in the nunfb er of adjust er s , the scheme of organi za tion 

during this 1Ftter period. under t he St a t e Offi ce system cp..me to be different. 

The Stat e Director or St a te Coroo liance Officer c a rried the bulk of 

public relations and u ress relations work, toge ther with general administrative responsibility. Nominally, the functions of this p osition did 

not change. 

So it was also with the Executiv ~ Assist ant and the Trade Practice 

Compliance Offi cer, wh er e there was one, except tha t the functions of 

the latt er came to be cente r ed chi efly in contacts with Code Authorities. 

In some offic~s the uositiou .of Legal Adviser was for all practical 

purposes abolished by the simnle ~)e di nt of not filling vacancies. 

Legal Advisers were definitely siven the t ask of assisting the Labor 

Compliance Officers in the e:cercise of their functions, in addition to 

their previous· duties~ 

By virtue of the e~larged staff ~Dder them and the increased emphasis on this p hase of the corrpliance organization, the Labor Compliance 

Officers became more executives, rather than adjustment officers. The 

general f1.L.1ction, to supervise and have direct resnonsibili t y for all 

labor compliance activities, remained the same. However, the bulk of 

the Labor Compliance Officer 1 s time was ~pent in. supervising and planning 

the activities of the 'Field Adjusters. The actual handling of cases for 

adjustment necess~rily was limit ed and. restricted to 11 key casestt in the 

industry or state Ftnd cases involving det erminations of compliance policy. 

This change infunctions, it should be borne in mind, came lativ~ly late 

in the period and after the development of the idea of placing complete 

direct authority and res1)onsibili t y for labor compliance on the Labor 

Compliance Officer in a~h particular office. In. s ome sta t e s, there we re 

created the ~ositions of Assistmt Labor Compliance Officer and Chief 

Field Adjuster, to assist in tho details of supervision and direction of 

the ],i eld Adjusters. 

The number of Field Adjust ers vari ed gr eatly .nccording to the population end industrial import ance of the sta t e in which each office was 

locat.ed and the volume of work of the particular offices. The Adjust ers, 

contrary to the earlier scheme, were under the jurisdiction and authority 

of the Labor Complianc e Officers and consequently d evoted the grea t majority 

of their time to the inve stigation and adjustment of labor violations. (*) 

At the discretion of the Labor Comnli anc e Off ice r the Field Adjusters 

were sometimes u sed on trade pr0ctice case s. 

On june 2, 1934, authority was given to the State Off ices to station 

Field Adjusters at strategic points throughout the state. These Resident 

Field Adjusters were under the su~ervision and control of the Labor Compliance Officers, but of necessity were placed more on their O'lm responsibility thru1 the Fi eld Adjusters st a tioned in the State Office itself. (**) 

\ 

~~----'~---------------------------------- (*) Some Off ices, however, had Trade Practice Adjusters assigned only to 

trade pt>.ac tice cases. 

See infra. pp. ~65 for a further discussion. ( **) 

9861 
- ··.!. 3-

Summ i ng up , in t hi s ... eriod. of devel O)I•Jnt , t11e inter nal or t:anization of a f i el d offi ce consi s ed in a St ~te Dir ec or, Tiho was nominally 

in cha r ge of all ctiviti . hi;;; ExeClltive Assist an t , •,fl.o handl ed office 

management , [t Tr ade Yi'tctice Conplir-nce Of f i cer , a Le·"al Advise r, who was 

a t l east pcrtially unde r the Labor Co pliu.nc c O:Cr icer , r~nd u. Letbor Compliunc e Officer, un er whom Per o t he Ad just er s und ot 11er excl usivel y Lab or 

Complianc e Pe r sonnel , and wno w.-1s r egarded as generally on a par wi th 

the Sta t e Dir ector .:.n ·u.thority ov er l abor compliance c:.c tiviti es. (*) 

This scheme of organi zation differ ed f rom th e orig ina l pl cm under 

Bulletin No. 7, c?~nd Fi el d Let t er 69 in tha t 1.1 or 8 eiHphasi s was l a i d on t he 

l abor pha se of a ctiviti es rt.nd. both the authority and the r esponsibi l ity 

f or l a bor compl i enc e we r e cent er ed in the bor Complianc e Off icer. Thus, 

wh i l e the t yp e of organi zation i n ef fe ct during th i s per iod of devel opment 

was l oose and not adap t ed t o the gr eat est effic iency , i t was , never thel ess, 

an impr ov ement on th e or i gi nal pl an and a 'st ep toward t he mor e co:;1pa ct 

and be t t er-bal anced admi nistr ati ve se tup tha t foll owed. 

Section 5 - Fi nal dev elopment of organi z;.tion under t he Regio::1a l Office 

sy stem. The cr eation of the Regiona l Offi ce syst em ·,-,as annou nc ed i n 

Fi el d Le t t er 190 , i ssued December 28 , 1934. Among the pur pose s of the 

new Regi onal systeM , chi ef among wh ich was t he r elief of the congestion 

of unadjust ed ca s e s befor e t he National Compliance Council, was the decent r ali za tion of the Compl iance Divi io~ organi za tion ith a consequent 

cl oser superv i sion of t he f i el d . Toge t her ·wi th other .functions and power s, 

the Regiona l Dir ectors were Hto di rect and be re sponsibl e f or complianc e 

admi nistra tion" and 11 to d ir ect and super vise the Stat e NRA Comp liance 

Dir ectors in t heir Regions." (**) 

At the same time t ha t the new Regional syst em began to oper a t e , i nst ructions wer e i ssued mor e definit ely stating the st andards of adju stment 

to be applied by t he f i el d offi ces. (***) Thu s , by Fi el d Let ter 194 

(J anua ry 1&, 1935 ), a ll compromi se cases wer e r equired to be submi t t ed to 

t he Regional Dir ectors for thei r approval bef or e adju st ment. (* ***) 

The natural r e su lt of t he creation of the Reg io::1al Off ice syst em 

and the issuance. of instructions maki ng the st andar ds of adjustment more 

i nfl exibl e , was to dr ~ the fi eld toget her and to tie it more clo sel y 

into t he Compliance Division organi zation. 

(*) Becau se of the hazy line s of authority a s indica t ed 'in the t ext, 

it i s not f easibl e to chart the functiona l organi zation a s 

developed during thi s pe riod unde r t he Sta t e Of f ice Sy stem. 

(**) Field Le tt er 190, p, 3. 

(*** ) Fi eld Le tter 193 (Januar y 10 , 1934 ); supr a , p. 27. 

(**** ) Supr a , p . 27. 

9 861 
The Regi onal Off i ces s oon took stops. to imp rove t he effi c i ency of 

t heir St a t e Offi ces b y i n trodu c i ng bet t.e:r m~ ho ds of organization and 

control. TL:; St a t e Direc tors and St ate Corrm lianc e Of f i cer s were in- - .l .• 

struc t ed t h!:'.t t hey we r e t he per son s to w£1om t he R:;gional Offices v1ould 

l !> ok fo r t he o-per a tion of the ~J..: anc e n rogr am i n t heir states. I n 

a d dition , i t wa s a6ain s t a t e d t :nat n o do cl'::e t cd l aoor or trade Dr a ctice 

c omo lain t shou ld b e close d wi thnu t t he atmrova l of t he Lc.bor and Tr ade - . ·' 

Pra ctice Ccmolia:1ce Off i ce r s , r esp e c tive l y . Tho d ev elopment of t h e 

LabQr Comp liance Of fic e rst jurisdiction ove r the Fi eld Adj ust ers wa s 

ma de clear, si nce wl1en it b ec ame n e c e s s a r y to·. r efe r a trad.e -p r ac t ice 

c a s e to a Fi eld Adjuste r, the case h ad to b e ·· r efer red ... t h rough t he Labor 

Comp lianc e Office r who assigned i t to t h e indivi du al ~djust r. 

Thus , it is s e en t hat the type of organization f i n a lly n ut i nto 

effe ct in t he fi oiLd. office s in the l a st ;Je riod of deve lopment was t he 

same , with one mat eri a l diff.e rence, a s tha t evolved 11-11der t he l a ter 

Sta te Off ice Period, from Jw.'1e , 1934, to J anuary , 1935. That di ff e rence 

was in c leRrl y mak ing t he h ead of t he off ice the focal p oint for all 

r elations bet ween the St a t e Of fic e s and. t beir r e s-po cti ve Regions. ·( *) 

The chart on t h e op-p o si t 8 nage -s·hovis t h at the Ex ecutive Ass is t an t 

was s e cond in gene r a l auth ori t y to t h e State Col11D lia:nce Off icer i n add ition to being r es1) onsible f or of fi c e manag Elment. WJ.1ile t h e Trade Prac tice 

and Labor Comp liance Of fic e rs rep ort e d on ,the ir r e sp ective funtions 

dire ctly to t h e St a te o~liru1c e Off i c er, t hey we r e als o subject to t h e 

g eneral jurisdiction of the Exe cutive Assi s t an t, a lth ough t h e latte r 

sta tus was n s v e r d e finit e l y de t e r mined. Cons e qu ently , t he re existed in 

some off ices a confli c t b e t v:een the Exe cutive Asr:; istant and t he Labor 

Compliance Office r. Th is manife st e d itself a c cording to t he pe r s onalities of the indivitluals holdin g the s e DOsitions in t he p arti cul a r offices. 

The St:'.t o Adjust ment 3oard .continue d to a ct i n an advis ory c apacity , 

although i t :.> u s e de clined after Fi e ld Lett e r 194 (January 18 , 1935) , 

which took away the :Bo a rd7 s p ower to a pprove comp romi se s. 

In Janua ry, 1935, the Sta t e Leg al Advi s e rs we re transferred to t h e 

Leg al Division an d their title s were chan5ed to "Comp liance Attorneys. 11 

(** ) Whil e continuing to advi s e the St a t e Complianc e Officers and St a te 

Directors on l Gga l matte rs, t h ey v.re r o subject to the suuervision and 

authorit r of the Regiona l Attorneys of the Lega l Division. At t he time 

of this tran sf e r., . hovrevur, s ome of the l egal p e rsonne l were r e t ain e d on 

the Comp liance Division ayroll in diffe r ent c ap a c iti e s. 

The functional organi zati on of the fi eld, of course , diff ered with 

various off i ces. Th i s was !latural, b e c ause the uers onne l n robl em had 

not b e en solved. Hovre ve r,. for -purp o s e s of illu,stra tion , i t is de emed 

approp ri a te he r e to d escribe t be int e r na l s tructur e of sev e ral of t he 

fi e ld off ices, wh ich, it will b e s oan , . diff e r ed on l y i n minor de tails, 

due chi e f l y to va ri a t i on s in si ze an d. J..n vol u:ne of work . 

---- ---------·------ --···------- --------- ---- -

(*) A c h e.r t showing t h is f orm of or g a;:-li zation i s r e-p roduce d on t ho 

o-pp o site ~e . With mi nor ri tions, as d escribe d in t he body of 

t he t ext t hat follows, it i s r ep r esent a tive of th.:; f i e ld offi es~ 

(**) Fie ld Le tte r 194. 

9861 
State Adjustment 

Board 

Executive Secretar,y 

Laber Compliance ~-- Officer 

Assistant Labor 

Compliance Officer 

Chief' Field 

Adjuster 

Field Adjusters 

(and Investigators) 

9861 

) Sta. te Compliance J 

Officer 

I 

Executive 

Assistant 

I 

I 

Trade Practice I 

Officer 

• 

I L __ _ __ 

I 

Chief 

Clerk 

I 

Com 

At to 

pliance 

rney 

Clerical and 

Stenographic 

Staff 

-1 -

The :B oston , ifassa lusetts StClt~,.; Ofticc 11:-'d [!n C'Xlcutive staff co.1-

sistine; of the st·:tte Compliance Offi er, an Executive s::;istant , a 

L0bor Complia:1ce Off icer, and ~ Trade Practice Co!TTT)linnc~,.; Office r. 

The E:· cutiv · Assista!lt v:as in full 1 ar~e of t he offic force and 

a ted as Executive Secre t ary of th8 St a t e Adjustmen t Boa.rd , in addition 

to assisting the StPt e Compliance Officer in his gener0-l administrative 

duti es. Under tl1e Executive Ass is tan t vras a s teno ~ranher rk who v1as 

in charge of the bulk of the steno gr aphi and cl erical staff , theremainder r uo rting dir ctly to the E::-:ec"J.tive As sistant. A dis ussion of 

the mechanic'3.l details of t he gene r al staff 1 s functions is not de emed 

material. 

T11e Tr::tde Practice Compliance Officer was in ~1a ge of all trade 

practice complaints and other matters closel;>r allied vri th this phase of 

compliance . He did most qf his own investigational and adjustment work 

and reported to the Stat e Compliance Officer. 

The Labor Compliance fficcr, dir ectly under the s"J.uervlslon of the 

State Compliance Officer, was r esnoneible for obta i ning compliance with 

the labor provisions of the codes. Under him was an Ass is tan t Labor Cornpliance fficer who assigned complaints to the various adjusters for 

handling. There was also a Chi ef Field Adjuste r, who in reality acted 

only as a Senior Adjuster. The re we re fourte en other Field Adjustors and 

t wo Investigators, who did not make final adjustments. Some Field Acjusters we r e assisned to particular codr:: s, wh il e others worked on co~laints 

arising in uny industry. 

There was also a supulementa:;:y investigational staff supplied by the 

State Department of Labor, in cooneration with the Stat e Office. 

The Co~~ecticut State Office executive staff consisted only of the 

State Compliance Officer a1d the Labor Compli a nce Officer. The functions 

of Executive Assistant, Trade Practice Compliance Officer, and Executive 

Secretary to the State A~justment Board ~e re all exe rcised by the State 

Compliance Officer together with his ovm duties. 

Under the Labor Compliance Officer, who had the usual f"Lmctions, we re 

an Office Adjuster and e.ight Field Adjusters, one of wi1om was supplied by 

the Federal Emergency Relief Administration. There was also another Office 

Adjuster who handled both labor and trade practice cases. These Office 

Adjusters had the function of handling comPlaint adjustments by conferences 

in the State Office , as distinguished from Field Adjusters who also made 

investigations. 

The Rhode Island State Office organization is interesting because of 

its uniqueness, the ~lan which wa s to have gone officially into effect on 

June l, 1935, not providing for 6ither a Labor or Trade Practice Compliance 

Officer. 

The State Compliance Officer and the Executive Assistant supervised 

the general activities of the office as we ll as the compliance work, the 

EYEcutive Assistant also acting as Executive Secretary to the State Adjustment Board. 

9861 
·'. 

.· 

.· 

;· . 

. •· ' 

J ... - ( ,. 

! • 

> ' · 
The gene r al office st nff con i st ed in ~ Chi ef Cl erk nd a n Azni stant Cl er k (b oth of rhom h:.mdl ed dct; ni l s on ,)er sonne l ) , t wo fil e rlerks , 

t wo do ketin~ c l er ks, t wo ptionist s (one of whom w· s al s o a f il 

clerk) , c:md f i vz _ teno ~ nher.) (t wo of who havt"J b ,en proviously mentioned i n othe r ao cit i~ s • 

Labor and ~ade practice compl ai nts \' r , 'ldjust ed by a c-t af f of 

three Senior Comp l ian e Alju ster s , one of nl1om al so ac t ed a s Fi el d Inve tig '3.tor, with seven o t:ner such invastic:, at0rs under h i m. Rou t ine 

correspondence on comp l r.i n t s v.'as handl ed by t wo membe r s of t he cle ri cal 

s.t af f . 

Tho int ernal s tructure of t he s~ ouri Stat e Off ice followed t he 

same general line s as those described bov ~ although it had a slightly 

fuller organi zation mor e tyoical of t he l ar 5e r offices. 

The State CoJl'l:.) liance Offi cer e~~ er se d g ener al up e~vision over t he 

entire st af f of t he office , directing and controlling all activiti e s 

through a numb er ed seri e s of r,J.emoranda , s e tting forth general office 

routine , off ice olici es , assignment of duties, and general instructions. 

Thes e memoranda u sually r esulted from we ekly confe rences with members of 

the exe cu tive st E'..f f and w .... ekl y r:J.eeting s wi tl1. the Field Adjusters. In 

addition, the bulk of the work connect ed with relations with other Federal 

and Stat e agencies, Code Authorities, labor unions, and trade groups, a s 

well as all conta ct with the Regional and Washing ton offices , fell on the 

State Compliance Officer. He also handled all matters of personnel, except routine, on the advice of a Pe rsonnel Committee compos ed of the Executive Assistant, the Labor Compliance Officer, the special Adjuster, the 

Compliance Attorney, and sometimes the Chief Field Adjuster. The actual ~ork connected with the is u~1c e of homeworkers' and handicapped workers' 

permits, with which he was cl1.ar ged, was delegated to the Special Adjuster. 

Because he had formerly served a s Labor Compliance Officer and had handled 

the Apprentice Tra ining Drogr am in the s e, the St ate Compliance Officer 

continued to carry this function, a ssisted by the Special Adjuster. 

The Executive Assistant v1 a s 

office and_ all matters of office 

clerical and stenogra:9hic staff. 

Officer in public relations work 

Off icer. 

responsible for the management of the 

routine, ru1d sup ervised the general 

He also as visted the St&te Compliance 

and acted as Trade Practice Compliance 

In direct charge of the office staff wns the Chief Clerk, who also 

handled ersonnel de tails ~1d sorted all incoming complaints for acceptance, rejection, or trc:..nsfer to another agency. Where the proper primary 

action was in doubt, the Chief Clerk referred the que stion either to the 

Compliance Attorney or to the Labor Compliance Off icer, who had formerly 

served as Legal Adviser. 

A member of the clerical st aff, so classified because of budget 

rest rictions, acted as Tr ade Practice Adjuster, r eporting to the Executive Assistant. 

The Labor Compliance Off icer dir ected all labor compli cnce activities, 

i ncluding the plan-ning of mass compliance surveys and the tra ining, instruction and supervision of the Field Adjust ers. Acting on suggestions 

f:om members of his staff, he rescribed standards and policies of inspectlon and adjustment to supplement the general instructions from Washington. 

9861 
He supervised the work or the Fi eld Adjust er s by r eviewing c as e f i le s 

and da ily r eports. 

The r evi ewing ·of case f iles and reports wa s also done by Special 

Adjust er, v1>' actec1 a s C:lll Assi st ant Labor Comp liance Off icer and _~~_ 

a s a speci cL assi st ant to t he Stat e Comp lianc e Off icer, in addition to 

her re r f unctions in connection with t he i ssuance of er its f or 

han eli c;mped. and home worke rs. 

The a ssi g11ment of cases to and direct supe rvlslon of t he Field Adjust ers were dele t~d to t he Chief Field Adjust er. Newer men were al so 

a ss:l.gned. to the Two Senior Field Adjust ers for rvision and tra i ning . 

The t welve Fi eld Adjusters were charged with both the investigation 

and adjustment of comp l aj_:n ts, unlike the ffilode Island system, whi ch split 

up the ,, e t wo· functions. More import ant cases wer e assigned to the Chief 

Field Adjust er mld the t v10 Senior Field Adjusters, but t here was no 

speci ali zation of codes. 

Cas es involving .adjustments which were important because of si ze or 

other f a ctors, or con.taining q-.lestions of policy or diff icult interp retation we re referred to the· Labor Compliance Officer for his personal a ttention. 

·The Compliance Attorney a cted as legal adviser to the St nte Compliance Director, but re:oorted. to the Regional Attorney of t he Legal Divis~on. Legal matte rs , qu estions of i nterpret a tion, and t he p rep ara tion 

of unadjusted ca s e s for removal of the Blue Eagl e and for li.t i gation comprised his offici'a l . function s . He also assisted t he Labo.r .Comp liance 

Officer in handl-ing· cas.es vvhich ver e likely to r each .the Distric't{ At torney. 

The l ast desc~i tion of fi eld off ice organi zation ha s be en given in 

considerable det ail to more cleraly bring out the mach inery established 

in St a te Ofi'i ces t o carr'y out their f unctions. It is not to be suppO §.E? d . 

that the off·:.ces spe ci a lly mentioned were other than c~mveni nt illustrations fo r a p roper concep t of the field organi zation. 

The structures described rep res ent those fi nally develop ed by May, 

1935, By t hat time the field force h ad .been improved from, in mo st offices, 

the original' top-he-avy organi za tion to a f o.irly we ll-balanced, smoothly 

opera ting staff. Da ily exoerience in handling case s, and the better organi za tion methods which were evolved had begun to combine and solve many 

. of the probl ems of inadequ at e personne l and of cor liance p roc edure. 

Count e rbal anced against this vr as t he ever-increasingly apparent weak legal 

basis for the NRA p rogrrun, which lso s erved a s a p otent i nfluence on 

efforts to increase the efficiency of the comp liance organi zation. 

9861 
- ·'19-

Chc;j.ptc r V - Compl i a n ce Pro.ce u r e i n Field Offi ces 

Sec tion I - ~~~l} ~ .. -!_ E2-. P~?- .E__C?_f_ oc .dure . Tl1o origi nal "Regulations 

for the Adjus t m n t by Di stri c t Compl i anc e Dir ec t or s of Compl a i n t s of Code 

Violations " est a bl i sh ed .~.1 o p roc edur e to b e f ol l owed by tho f i el d i n 

carrying out its f unctions·. Unde r thi s p roc edure , and t hat )r omulgat cd 

for t he Loca l Compl ian c e Boards i n h andlin6 t he Pr esi den t ' s Re employmen t 

Agre emen t, ( *) t he sol e basi s fo r a ctiv1ty in obtain i ng com:?l ianc e was 

t h e f i lint5 of compl aints by employe e s , COI1 peti to r s or o t he r in t e r est ed 

par ties chargi ng t h e pa r ticul a r responden t with comrni tting a viol ati on 

of a cod e c r ~e PRA . 

(*) Bull etin No . 5 , "Regulations on Pr oce l u r e fo r Local NRA Complianc e 

Board s 11 ( Sep t ember 12, 1 933 ), pp. 2- 6 ; i n clusive . Th e proc ed.u r e 

pr ovided b ri efly was as fo l l ows : n en a compl a i n t of vi ol ati on wa s 

rec e ived , i t wa s exami ned f or legal su ffici ency by t he legal numbe r 

of til e Board. In th e ev en t the c omplain t st ated a p r ima faci e violation , n o t ice that i t had b e en f il ed was giv en the employer. The 

notice mi ght b e eithe r written, t ele:ph on ic o r per sonal, and was 

9861 

supl)O sed to assume compliance and tha t t he c'ompl a i n t was du e to a 

misunder s t anding. Toge t he r wi th t h e no tice , tne r e sponden t was 

fur nish ed with cop i es of t h e PriA and offici al e~)lana ry r eleas e s. 

The p r ovi si ons of t he P.RA we r e t h en explai ned to t he empl oyer by a 

membe r or a r epr esen t a tive of the Bo a r d i n an i nfor mal per sonal 

i n t e rvi ew , and t he r esponden t was al l owed to expl a i n t he f a cts 

a ll eged i n t he compl a int and to make any nec essary a djus t men ts 

i n work i ng c onditions·. 

I n the ev en t t:i.1e compl a iEt wa s no t adjus t ed by t he fo r egoing :9roc edur e , t he r espond en t was g iven an ortun ity to ap pear b efor e t h e 

Boar d and st a te h i s case. Notic e of op}ortunity t o be heard b efo r e 

e Board wa s not i n a ;> es cri bed form but :i.la d to 'l e s ent on of~ 

f icial NRA statione ry i n a f r anked env elop e, and wa s t o i nclude 

co} i e s of t h e PRA and off icial explanatory r e l e ases, u nl ess p r eviously furnished. 

I-Iearing s we r e to b e c jnduct ed by t he Bo a rd on an i nformal ton e, 

fo r t he ur e of· educating t h e empl oye r and inf luencing h i m to 

compl y vo l untarily. The Boards we r e i nstruc t ed t hat y had n o 

power to CQ m~el t he att endanc e Of .t:Ll e employe r and Witn esse s, t h e 

p r oduc tion of b ooks ·and pa pe rs, or t h e g iving of t estimony . Que st i ons we r e to be co nfi ned to t :

1.le si n 0 l e pur pose· of d e t ermi n i ng t he 

validi ty of t he complaint, and we re to b e u sed c;.1i efl y to aid 1e 

respond en t i n mak i ng h i s voluntary st a t emen t. If t :1e r espond en t 

r ef used t o answe r a mat e ri a l qu esti on it was expl ained to h 1m t hat 

such wa s con trary to th e sp irit of t he Agr e ement, and such r efu sal s 

we re no t ed by the Board i n maki n5 its r eport to NRA. 

The :Board then d ecided by majority v o t e whe tHer or no t t he compl a int 

was -v·a l i ed. ':'~'he e no v i ol a ti on wa s fou nd t .. l e c as e was dr op)ed. 

·ilfu e re a v iolation·,wms frond, e e rapl oye r was 6 i v en an op _.)or tuni t y 

t o r e c t i f y conditions. I n ei t il e r ev en t, ~1 r e c omplai n t was 

adj usted o r r ej ect ed , t .. 1e r esponden t vvas g iven a Let t e r of Compl1anc e 

(Fo8 tno te ( *) cont inued on next :9a6e ) 
- 50-

(Foo t no t e · ( *) continued ) 

wh i ch h e ;niga t d i spl ay · near his insi gnia. . 

Nlle r e th e .· r esponden t r efused to a djust, t.11e Boar d f o rwar ded a 

r eport to NRA · t h r ouGh t he Sec r e t a r y of ti.i e Di st r i c t Rec ov e r y 

Board, si gned by a.ll memb e r s , w.i th t het r vot e s indicated, wh i ch 

included : t he o ri gi nal c ompl aint;.· a ign~cl c ertifi c a t e by t:1 e 

l egal member or o t her r epr esent a tiv e tLa t t he :9roc e d.ure outlined_ 

.1i acl been fol l owed ; a summar y of be .er:.·r1)l oy e r 1 s st a t emen t; any 

add itional pertinen t f a cts ; a r ec ommenda t ion f0 r urt~1e r a c tion . 

Progre s~; reports wer e mari e from tiine t o time to ~w Sec r e t a r y 

of t h e Ji stric t ~eco ery Bo ard. 

All con,:1l a irit s .11ad to -be .in wri t 1n.g _and si gned by the c ompJ-ai nlng 

p a rty. The ·Boar ds' jurisdiction ex t end ed to all PrtA co lain s 

a gain st empl oye rs iri eir rt cul r comrnu n i ties. 

Two c a r d ina l rul e s of :pr ocedur e · were l a i d dm:n : ( 1) be t -1 t h e 

f ac t t ha t a c ompl a i nt IJo.Ll been f iled a 5ainst an em::_Jl o;er and 

the comiJlainai.lt 1 s iden t i t y · were to b e .k e::_Jt conf i den tial; (2 ) 

~n e Board was· not an enf orc e1nen t abency i n any s ense of t l.: e wo rd, 

. but was to gain com1;1 iance 1r augll e dc.1c a tion ' · 8Xp l ana ti on, and 

nciliation ~ 

.The .Boar d had no genera l investigati0nal or i nqu i sito rial f uncti ~~' but to t h e ntrar , wa s instruc t ed no t to u s e its r ep resenta t i v e s a s inve stigati on ~ts (p . 1~). 

Second offende rs, where t h e action ap·.)e ared to be wilful, we r e 

to b e t;S iv n ~ ·op:Jortuni t y to a r:l just co laJn ts. 

(No te t h e similarity b e t wee n ·t j:l8 .above (lE? scribed _ :;Jr o c edure and 

t :1at em:;>l oy ed ··by Di strict Complia nce Of f ices unde r . t .-1e Octob e r 

1 9 3egulations and by t h e St::1 t -e Off ic es under Bullet'in .No . 7, 

whi ch is d iscuss ed in t he body of t he t ext at fol l ows . This 

... is made esp e ciall y inte r e s ting by the fo l l owins q:uo t a tion from 

Bul l e tin No 6 , p . 4 , wh ici1 b r ing s out the di f f ering bases of 

9861 

t h e PRA an d t h e codes,"----:- t h e Pre s i den t 1 s Reemploymen t 

Agr eemen t is no t ·a st a tut e t o be enfo rc ed by l ay but a v ol un t a r y 

indi Vi d-._lal COVenant. II) 
- blUnder t11e proce ure r c:1.tcd , con;r>laint c f c::>d.e vi ol .ti ons l a to 

be in writing , :0 ef r ably on t he o1 fi lnlly 1r c:;cribe form . ( *) ~ e 

instructions also stat c-4. ·Lt,.J. t W.1t:r 0 poss1bl c , cr J?la1nt "" ..,llOU ·1 be worn 

to bef0re a notary ur witness d by a t lea'" t on e tJe rson fami i r wi ~1 t:_ e 

fac t s . riowev er , t _llS l a, t WaS nCV "l' fol lowec· e;-.ten si.v el y by t :le fie 

offices b e ca se , fo r t . e most J<''l I't , c 111 Jl('1.in1ng e.npl 'J ye cs were financ1ally 

unabl to pay notaries 1 fees Flnd r ea r of t "1ei r identiti es as cmn)l a inants 

becoming knovvn pr ecluded t .' le p r a.ctica0ili t y of re'-lUid.nb wi t ncs e s . Likewi so , many comJ?l a inan t s we r e r elatl v el.y un ed.ucate•l an0. unable to cope 

with any t ec:mical r equirement _, attac_leti. t o e f ilint:;; of complaints. 

The District Oifices we re c iv en jurisdicti on aver all complaints 

charging v iolations of ap r oved codes by em}loyers itua t ed wi t h i n t he i r 

respective d1stricts , , (* .;. ) excej_Jt wi.l ere a code a.ut llO r ) t y fo r t he :particular industry l1ad been organized n.nd authoriz ed. to handle th e ty:oe of 

c omplaint filed . 

'JVhen a complaint was r eceived, it wa s -1.ocke t ed and examined by t he 

Legal Advis er to de t e r mine wl-;. etj"er o r not t he facts alleged ti.1e r e i n , if 

true, we r e suff icient to s t a te a viol a ti on . If ~ie finding was in e1e 

negative t he complaint was rejected and cl osed and the complainant so 

no tified , toge t her with the r easons for holding it invalid . (***) '{owever, if e compl aint was determined to state a p rima facie c~se of 

violati on, it was accepted and put t11rough a r egular p roc edure, described 

below. (  ) 

It is i mportant to note here t he emphasis w,.ncn was plac ed on l egal 

suffici ency, f o rm, a nd <?- se t procedure , s1nc e t he t endency of the field 

was to interpr e t t11ese instruction s literally. ~1 is emphasis on f orm 

was no t wi t .1aut its purpo se . Th e field of fi c es we re very much under st a ff ed, and even t h e limi ter3. :;_Je rs0n t1 el was largely untrained for the wo rk, 

so tha t scme d evi ce was nece ssnr y to c onserve compliance facilities by 

elimi nating gr oundless and c rank cornl_Jlaints • . l·:owev e r, t l1e placing of 

formal requir emen t s prov ed to be a t wo-edged. sword., for many really bad 

case s of non-co. pliance wen t u n t ouc:.1ed, onl:I to arise a nd ::_Jlague t he 

field off ices a t a later date. 

In illustration of t his was t ne manner of treat men t of anonymous 

complaints. As :po i nted out in t l1e f uo t note beginning on t he f irst :::>age 

of this cha]!t er , L1e in s tructi ons to Local Coml_Jliance Boards handling 

t11e Pi?.A required all co:t1pl a 1nts to be in wr i t int?; and singed by ~1e complainant.. (** ** *) T-lis was c_lanbed in t ue iw;tructi on s to District 

Compliance Directors to t..he rul e tha t anonJmous co1n:;laints might b e acted on at t:1 e d.iscre tion of t n.p Dir ectors. r ******) In practice t -1 i s resulted in the majority of such complaints oe int; r ejectecl , since t h e 

District Of:."'ices ,,vere looking. :t'o r ev e ry p 0ssi ble v!ay to lighten t hei r 

( *) 11 ..:1e~ ti on s fo r ~1 e Acljust men t 11 e t c . (0c tob er 1 9 , 1933 ), p . l 

(**) "Regul a tions fa r t lle Adjustment, 11 et c ., p . 1. 

(* **) 

(  ) 

( ** ***) 

( ******) 

98 61 

I b i d. , p . l 

Infra, :pp . 52-53. 

Office Manual, V~:B-22, s ec tion 1, pa a~raph 2. 

"Regulations fo r t.:1e Adjustment" e tc., p. 1. 
- 52 ~ 

m loads so tha t they could op era te with s ome degree of eff iciency. 

Alth ough this t rea tment of anonymous comp l a ints was dictated by im;nedi a te 

neces:si t y ' it later was proved to have been an undesirable method of 

app ro ach. While logic concluded t h at if a comp l a i n t were well-grounded 

and made i n c;o-ocl fa ith t b e comp l a i nant would sign h is n ame, experience 

showed tha t man;y comp l a ints were filed anonymousljr and many violat ions 

went unreported becaus e the emp lo:7e e s were afr a id t hat t h e s igni ng of 

the ir names on a comp l a int form meant p robab le dis char ge , or a t least 

dis crimL1ation on the part of the emp loyer. ( *) 

However, b efore going furth er into t he gradual modification of t h e 

comp l aL1ts basis of comp liance activities, it is well to e xamine i n·to 

the procedure created for the handling _of code comp l a ints once t h ey h ad 

been accep ted by the Le.gal Advisers. · · 

It wa s orig inally provided that a ·comp lain t valid on its face shou ld 

take one of two cou r s es of action. If t h e Code Authority had been auth orized to h DJ.1 dle the particular t ype of comp l a i n t, a copy was r:-eferred to 

the authori zed agenc3r for adjust:nent within a specified time and t h e 

parties were so notified. (.~* ) If ithi n· ~ time specified t h e c ase 

was · not reported b a ck a s adjTJ_st d~ . tht? District Comp liance Director 

proceeded to treat it accor q..ing .. to' th~ second cours~ 6f action. Where 

the 'Jode Authority made a r ep.o:rt to the District' Compliance Director 

within the time limit~ ·from :wfiicP. ft ~p ea;red. a satisfactory adjustment 

of the co pla~ t had.; peen made' 'the case. w~s · filed as adjusted. ( ***) 

( *) · This fact was recogniz.ed, at least in part, at an early date. 

Liaison Circular 64 (October 6, 1933), paragraph 3, quoted a 

memorandum purportedly from the Comp liance Division r e lative to 

'instructions to Local Compliance :Boards, which read a s follows: 11 The 

instructions in Bulletin No. 5 sta te that 1 a ll c·omp lain ts shou ld be 

in writing and signed by the person making the comp l a int. 1 This is 

intended to p rotect the Comp li ance Board from fol.lowing up malicious 

and anonymous complaints. ·. 

so .... 

"If a :Board wishes to receive anonymous comp laints , it may ·do 

II - ..... 

Note tha t this memorandum was· written some three week s before the 

Comp li ance Division wa s offici ally ci1eated· by Office Order No. 40. 

( **) "Regul a tions for t h e Adjus t ment" etc , p. 1 

' 

( ***) 11 Re2,'Ul F.J. tions for t h e Adjustment;' etc., p . 1 

9 861 

.. 
)~ 

If t .1e D1 str1ct vor.1pliancc :Jirec t r A. no t been s)ecifically is tructed to refer t 1e . urticule.r ty.J:)e . .) f o.1_plu1. nt to n Code Aut .. 10ri t~r • 

it wrts .Llandlerl in t.1e .followinb a1a nn cr . (*) A e tter nf acknowlcU.gment 

was sent ~e coml)la.i.nan t. anJ. t 1e r e spon.ien t v•ns inf c•rmcri of t.1e natu1~e 

of t. e con laint , was furnis11ed A. copy ,11 t .!e co ·e a n:-l an explanat1on 

of pertinent p rovisions, and was invit·J · to st a t e 1is side JI t 11e case . 

(**) 

In t_l e ev en t t '1e fi r st lett e r t.o . t:i.1.e responden t fCJ.iled t o evol:e a 

response, c· r t h r e:.;>ly was unsatis.factory , a second letter was sen t (*** ) 

inviting the employe r to t >e of i ic e for a personal interview. I f t h is 

method proved f ruitle ss of adjus tment , a form letter was sent informing 

~1e r esponden t t ha t t he 'cas.e would be sen t to ~1e Na ti onal Compliance 

Director if sa tisfac t or y eviden:e e .of com:pl1ance were n ot furnis:1ed in 

a stated nurnber of .iays. Ano th-er l e tt e r was ~1en sen t notifyint;!; t '1e 

respondent th e case was bein~ forwarded to v:~.sl1ington. Aft e r allowing 

sufficient tiine fo r a r epl;\r • t l1e file was f orwa r ded t o t he National 

Compliance Direc t or for furtiler action. ( ) 

District Compliance Dir ct rs wen~ in tru ted. to treat all complaints confiden tially , because of t he danse r of the com~lainant 1 s d.isC11ar ge on c..ne ha:u'i, and ~1 e cl isastrou s effect of adverse :public opinion 

on a r e sponden t's business on 1e 1er h and. (** ***) 

Likewi s e, it was emphasj_ zerl t j1.o.t ~e f ield officers were not enforcement agents but were to attain compliance t l1rough education, explanatL: n end adjust.nent. (* ** ***) ~1 e enfo rcemen t arms of t h e Gov e rnmen t wer e Si_)eciflei in t: e Act as ·oeing t l1e Department of Justice and 

~ho . Federal Trade Corrunission, (*******) and case s ~: ent to t:1es e two 

aE;encies ~1 gi.1 ~1 e National Compliance Director and the National Compliance Board. (********) 

The treat men t of second offenders was not men tioned in the n'itegulations, 11 but in Liaison Circular 73 t.1e District Compliance Dir ectors 

v·:e re told only to substantiate t:1 e facts in t:;.l e se cases, wl1er e they 

( *) In EU. Studies S-pec1al EX. ~ibi ts Nork daterial #77. 

(* *) 11 Re _pllati:ms fo r t'1e Adjustment" e tc., p:p . 2 , 3. 

(***) See no te ("') &.bove . 

( ) 11 :he.:;ulations fo r 1e Adjustmen t" etc., p;J . 2 and 3. 

(** ***) 11 3.e__,ul a tions fo r ~1 e Adjust;nen t 11 etc . , p . 3. 

(******) It)i d , ::? · 3 ; Liai son Circular ,..i5, p . 2 . 

(*******) Nirt.A, Title I, Section 3, )arasraplls (b), ( c), .cmd (f); 

see also ~l :J ter III, no te (3), ·p . 16. 

(********) Office Order 40. 

9861 
- 54 .... 

f elt t_le violati ons we:.." e wilful, and t o .give no ~ ortuni ty to t:1e respondent t o adjust. ( *) 

Th is ·})rocedure c on t.g,i ned no :pla.c e f or field intervi P-w s or real 

inve stigation. Nor were e fi eld of:i. c. c e s equi:ppec1_ to experiment in 

t:1is direction. (**) It is litt le wonder, ~1 er fore, tha t small i rr.-

provPmen t, excep t in i sol r-'1-te cl off ices, was made in compl i anc e p rocedure clurj ng the e;:J.rl y days. TJ.1e :pr<J ce·'l.ure 1ic 1 was created was 

so ill-adap ted to }?ractica l use, t }l e facilities provided for 1e field 

so inad equate, that t h e immediate va.lue of t h e field offices as real 

compliance a gencies wa s a lmost nil cluring tJ.lG enrl iest stage. Their 

use ca.ne more as ex_:-1e:rimen tal· stations f or ~J. e ::.m:Jrovemen t _o f )rocedure 

and crganization· and t .. le develo]?ment o:f pc,lici e s, and a s a.gencies for 

educati ng industry to t ile values and henef i ts of NRA, which did not make 

itself felt until a later date. Nor :..s this· a · criticism of t l1e method 

of app roach to the gigantic organizEtti cn p roblem or of field offices 

as a class. As has been ·pointeci out in connection with t 1e evolution 

of an adjustment policy, (***) . a workable compliance system can only 

be developed successfully aft er actual expe rience in code Aruninistration. 

It was unfortunate that much time w-as lost in the emergency job of o-btaining compliance because such exi_Jerience was lacking, or if it were 

ava.ilatle from other similar systems of industrial ret;ulation, because 

its lessons were no t utilized. 

On January 22, 1934, .1ere wa s i s sued N::i.A. Bulletin No. 7, 11 1Aanual 

for t~1e Adjustment o{ Com:)laints by St a te Directors and Code Authorities. 11 

which modified and expanded on the reviou s :')rocedure. Just about a 

week prior to t~1e i ssuance of ~1 i s "Manual n the Sta te Directors were 

appointed and t J.1e Compliance Divisi cnt s field ol~ anizati n was cb.a..."lged 

from .. .a system of twenty-six District Offices, ·.l eaded by the f o rmer 

District Managers of t h e Bureau of Forei gn ::;,.nd Domestic Comme rce, to 

one of forty-ei ght, and later fifty-four, State Offices hearled by the 

new Sta te NRA Compliance Directors. (****) 

This transformatir;n in organization a nd procerlure reflected to 

some -.iegree tLe sad ex)eriences of ~1 e District Office s resulting from 

inadequate, untrained staffs and an inflGxible, too limited v rocedure. 

T:1e new procedure was brc acler, ru1d. contemplatecl some u s e of Field 

Adjusters, but still remained mor e o r less infl exiole anc:l conta ined 

several objectionable fe a tures froP1 tne standpoint of pra ctical application. 

(*) Liaison Circul a r 75 , p. 2. 

(**) Su1)ra, Ch ap ter IV, secti on 2, "Interna l or goni zation - -earl y 

d evelolJment 11 ( uf field office s). 

(***) c:1ap ter III, 11 T:1e Administra tive Settle,nent c. f Code Violati ons, 11 

p . 24. 

(****) 1ap ter IV, "T~le Orig in and Dev elo:pment o f Field Off ic es, 11 

su p ra. 

9861 
- 55-

T e n .er ly ng t •l co r y of a ll colllplianc e pr oc edurc wa s t 1J.c speedy 

eliminD.ti on , 'uy adjus t1 n .nt, of such nonco pl ianc e a s was due t o misunde r standin5 , and t h e })rom_p t pro secuti on of a ll c.:::as e s of wilf ul oncom:plL c e . (*) :U ea ring t l1is in mind it is int e~ g to no t e ~1e 

c:1ances brou &! lt a out i.n Bul le tin No . '7 . 

At t h is point t 11ere S:.1 ould b e recall ed t Le h i story of t he ·d cvelopiTient of 1e definition a nd pol 1cy of a djustment and t h e int ernal 

organizati on of t.;. e f ield offic e s , both of wh ic:1 11o.v e b een di scus scd 

in previous ch apte r s . 

A sint:;le .:_)rocedure wD.s establisl1ed o s tensibly fo r all types of 

cases ~ Howeve r, t ·.e o r ganizati on of t he o.ffi c es wi t l1 separate Com-

.91 iance Of I icer s f or labor and trade pr a ctice, :=md t he ap_)l ica ti on of 

t lle i d ea ) f l ndllstrial self-t:;ove rnmen t ( **) chiefly to trade p r actice 

cases , may be said t o have ~· lit up tis single system, in r eality, 

int o t wo s~;p <:'.. e l)r oc e'ur e s w.1icll ov e rl a 1.)ped t o a certain. degr ee in 

complaints ari sinb under indi vi l c odes. 

T, .. :.is brine;s us to a considerati on of t:i.t e definition of t h e terms 

empl oyed t o ) r escribe the limits of eacl1 divi si on of p rocedure. Complain t s w· i ch dealt wi t h violati ons of t he labor p rovi si ons of t he codes, 

i. e . , t:le r egulati on s concern in_, minimum wages , maximum .wur13, homework, 

Md c. t :.1er t erms o.nd conditi ons of employment, including the prohibition 

of ch ild labor, we re desi6Ilated as 11 labor complaints." Conversel y , 11 tr a1~ p ractice compl a ints" we re defined to inc.lude those c ases involvlng violations of all ~.1er 9 rovi ns, such as, p:roq,uction control, 

cost de terminati on, regul a tion of trade t e rms , and ot~1er :~ es crib d rules 

of conduct of member s of i ndustry among ~1ems l ves. i $ 1?-st class 

also includ.ed prov1 si ons for t :·.o.e aclrninistrati on c.f t he codes by t h e 

particular industrie s . (***) 

.L * )_ _Bp,l.l e t in No . 7, p . 7. 

(*') Bulletin ' o . 7, p . 3 st e.t ed t .le )\l.r e of t 1"). e Compliance Divisi on to be to f ill in 1e gap s of indu strial self-E;overnmen t, 

which v-vas t:1e ul t iii1a te aim to be acco rn1)1 i s_led. Thus (continuing 

on pp. 5 and 6) Nrt.A. would 11 act for an Ind.ustry w:1il e t h e Ind.ustry i s jr gani zint; to 1andle c orapl:Lance p roblems for itself; 

c r le re an Ind..u try l n a certain terri t or-y has no Industria l 

Adjustment Agenci e s ; •) r 1e re an Industry , th l,l. t;~1 organized 

t o andle trade l)r ac tic e complaint o:: , as no maclunery to handle 

l a"J or c iOpl alnts; or vv.:ere t he Industry fails to carry tl-1rough 

in its effo rts to a.djust a compl aint; or w_:e r e f 0r any c 1e r 

reas::; n it is necessary f or ~. e gov ernLlen t al r _:-t ther :tan ~1 e 

industr1al sy st em t o a ct. 11 

(***) Bulleti? No . 7 p. 5. 

9861 
- 5ET.Lle cL ef 1ni t ion uf a ii d cl ass 0f complaints, 11 la'oo r di s:pu te s , 11 

i s no t g erman e t o t lli ~ discussi on because y were early removed from 

ti1 e jurisdi cti on of NRA and l)laced unde ~ t h e Natio·nal Labo r Board or 

~1er :e ci l agenc ies. (*) 

Uncler Bul l etin No. 7, complaints ~1ad to be in wr iting , prefera~ ly 

on .;. e NRA complaint f or m, but were· not requi r ed to be no tarized or 

wi tn essed. Anonymou s conr,?laints mig~1 t be acted U_)on a t t:1e discreti on 

0f t:1e Sta te Director. (* *) 

Complaints vvere r outed, accordin ~ to t,_le ir na ture , to e Lab or 

Ccmpl i anc e ancl_ Trade Pra ctic.e Compl iance Offic ers, re s") ecti vel y . At 

t h i s po int c on1e s an e ssential epar tu E? . f r om 1e ori ginal -:)ro c ed.ure. 

A c oml::Je ti tor making a labor com:plain t. against. anot h er · em~") loy r mi ght 

elect to ~1. ave it treat ed as. a trade . pr e.cti ce complai.nt, CJ~ d it wa s 

t he reaf t e r to go t :1rough ~1 e pro-ceclure for ~.L e latter t y-pe of case. 

It woutd t hus be r efe rred to a Code Aut:no rity autho ri z ed t:a handle 

trade pr a cti ce, al tl 'l not au ho1~i zed to ;lan·l l e labor viol a ti :: ns. 

(***) 

If a Code Aut:10 ri ty (* ***) exist ect in th e I ndustry and was authori zed to h c: ndl e t he particular )e of coml)lain t in t:le first instance, 

tJ.1 e ib riginal co111plai nt was referre6. to it wi 10u t fur ~1 er acti on by t h e 

Sta te Office, unless i t a}")_)e a red from th e face or sub stance of 1e cornplai nt 1at it was :c:mrl::Josel y filed with t h e St a te Director. (*****) 

A complain ant a lways. :;.1ad the ri g!.1t to file a coE1j_)lain t wi t:.1 the NRA, 

rath er t,1an wi t!1 an authorized Code Auti1ority , in orde r to protect h is 

or t h e public int erest. (******) 

(*) 

(**) 

(***) 

( ) 

Ibi cl , -~~ · 12 . 

Bul let in No. 7, p. 11. 

Ibid, p . 12 .• 

The t e rm It Code Aut 1ori tY" is u sed :.'.erein in or der not t o confuse 

t h e reade r, al t :10ugL e correct t i tl e pe 1al") S ~1 culd be, " Inclustri a.l AdJt.:;.st ment Agency," W~1ic". l is ·t:.le name s iven by :Bullet in }Jo . 7, ~p . 4 t o a.n agency of an 1nclustry fo r obtaining 

compliance. 

(** ***) Bulle tin No .7, ~) . 12. 

(******) .'Bul letin No . 7. T:li s ri ~~::. t, ~10w ever , meant little becaus e 

jurisdiction over t :,.-le approva l :ru1d ap:pointment, as well as 

t h e removal, of Code Authority memb ers and n.gents, to se t .. 1er 

with their authoriza ti on t o ~!. a:n e complain ts, was v e sted in 

t i1 e Div ision and De:_:mt y Actninistr.s.t o r s , :r a. er t:tlan in tl: e 

Con: ")l i anc e Divi sion. 

9861 
Thl s p rocedure was much mo r e c!HH·1cteri s tic of trn e practice cases 

ti1an of ·labor co.npl a i n t s . 1 .. 1il e a.I t e r Jun e , 1934. c·omDl a i.nts r ef e rred t o 

Code Authorities i n tl1e fi r t i nst anc e wei· <:: no t do cke t ed b j t he Sta t e 

Offic e and :1enc e no cm.pl e te f i 0 11r c s on t he nu..1b e r of c a e s so r eferr ed 

are availabl e , g n eral ~e ri enc e &wwed t .. ta t t_1e J? r e1)onJ.e r ant majo r l t y 

of suca complaints d ealt r,ri th trade ::..1r a ctlc e violat i.:ms . In fact .~69 

Code Auth ori ti e s we r e aut:wr-Lzed t o t. andl e trc.d e p r a ctice complaints 

as of ·March 23 , 1935, whil e but 21 were given jurisdiction ov e r l abor 

complaints. 

Complaints w .. 1icl1 c ame under t 1.l e initial jurisdiction of t11e State 

Directors were th en examined f or lega.l sufficiency , all doubt ful que stions being referred to t'1e Legal Advisers. T}li s examinati on did not 

differ from that provided in th e o r iginal pr ocedur e , except t hat w:1e re 

a complaint i ndicated a code ~o rovision migh t . have been viol ated , but 

failed to state suffi cient facts, instead of being r ej ec ted t he o~ 

plainant was r eque sted to fur ni sJ.1 t he necessary a dU.i tional information. (*) 

Where a Code Autho rity .i1n d been authorized to handl e complaints 

on r eference (usually labor), a d i gest of t .. J.e allegations was referred 

to th at body for adjus t ment wi in a . stipulated" :period not to exceed 

b1o v,reeks , and e :?a rti e s were so notified.. I f no r epo rt was made 

within the time sp ecified a Pro g ress Report wa s request ed by r e turn 

mail. If no s a tisfactory repl y was t hen r eceived ~e Sta te Director 

ad v i sed e1e Code Au thor.i ty h~ would proceed to adjust the case on 

t ne as surnp tion it had b·een unabl e to do s o , unle ss i mmediat e ·wo rd 

was rec eiv ed to the contrary. Suff icient tiine for a reply was tl1en 

allowed to elapse before action was a ctually started. If the complaint was rep orted back to the Sta t e Director as unadjust ed , it was 

t hen put t h rough a second course of procedure described below. On 

t he o t :1er hand, i f t h e Code Autho r i t y re:po rt ed t h e cas e as adjusted, 

the State Off ice closed t he c a s e and so notif ied the c omplainant. (**) 

The difficulty with ~1 i s a rrangement v.ra s t 'la t, si nce t h e Code 

Authorities were not under 1e full supervision and con trol of t he 

field ::> ffices or even t he Compliance Division in Washington, their policies of adjustment and p rocedure natrually we re clifferent. An alarming numb e r of cases had to be re-:aandled aft e r peinr: reported back to 

t he State Offi ces as adjusted. Tn e purpo se of t he plan was p robably to 

train t:1e Code Authorities to be in a position to handl e labor complaints in e first in stance. ( ***) 

( * ) Bull e t in No • 7 , p . 13. 

( * * ) Bulletin No.. 7 , pp. 13 - 14. 

(***) Ibid., p . 14, "The Sta te Director will keep a record of all complaints sent to Industrial Adjustment Agancies on reference and 

w~1.en he b elieves t h at any su ch Agency is qualified to handle a 

l)articular type of complaint in t he first instance he will make 

suc:1 a recom."Tlend.a tion to the National Complciance Director. 11 

9861 
-58-

The bulk of compl·aints f iled in State Off ic es, and not immediatel y 

transmitted in toto to a.notl1er agency, we re h andled r t h em wit:1out referenc e t o C'Jde Auth ori. t ies. 1e fo l lmvi ng J;Jroc edure r elat :i_ ng to cases 

l1andled di r e ctly by Sta te Offices, (*) 1e re, will fonn t h e center 

of t he r emainder of t i.1i s di scu ssi on on Coiapl iance p r ocedure in t he field. 

The initial steps were virtually t he sarne as :qr ovided i n t he orit:;inal 

11 Regul a tions 11 i ssu ed to District CompU .ance Directors on (;c t ober 1 9 , 1933. 

The respondent was i nfor:ned of t he nature of ~.~.e compl aint; t lle applicable 

part of t i1e code was explained to h im; h8 W:=ts a sked for a statement of ~li s 

:position; c:md h e was furni shed wi t~ l copies 'Jf t:C1e code and a~ printed 

statement enti tled, 11 Infonnation f o r Pe r sons C" lP-. ged with Viol a tion of an 

NRA Code, 11 which . set fo rtl1 in s:Lmple l an gu.abe a brief outline of t h e r~­

cedure and t :1e responden t 1 s ri g~1 ts. If no r eply was rec eiv ed in a reasonabl.e t .ime, a duplicate l e tter wit~1 enclosures W<i S sent to t:1 e respondent 

__ by registered mail. 

If tl1e respondent admitted ~1.8 vi olation but f urnished satisf actory 

evidence of ~0 resent compliance, willingness to com:9ly in the future, and 

equitable restitution (**) for ~o ast violations; tL1e case was c onsidered 

as adju,sted and the parties so notifiec.~. 

In case the respondent denied t"ne facts, or admitted t l1. e facts and 

deniecl "they constituted a violation, Gr f a iled to satisfy t h e Compliance 

.Officer t :1at . an adjustment ~1 ad been made, he was invited to be )resent 

at an of fice interview. If this method were not feasible, or if it 

failed to p roduce an a dJustment, a Field Adjust e r was sometimes sent to 

visit ti1e respondent. This tardy use of t he Field Adjuster indicates 

th_at invest~ga~ions in the field were of secondary impo rtance in developing .cases, an unsatisfactory c=tl)j_)roach dictated largel y· by budge tary considerations which in turn was due to e I)hiloso:?h Y whiel1 prevailed at 

the ti 1ne (early 1934) that most Code Authoritie s woul,cl in due course 

t~e ov e r ,the l1andling of compl i anc e in ~1ei r r es:::_)ective trades and 

industries. 

' 

>J.:f the Field Adjuster• s re})o rt slwwed no v:iolation, t h e complainant was so notified. If no furtl. er word vms received from t:a e cornJ;:>lainant w~ tl:in a reasonabl8 time (usua.lly ten days to t wo weeks) ~1 e case 

was filed as adjusted. VV:.1er e t;1 e Field Adjuster 1 s report sl1owed a willingness on t:1e )art of the r e spondent _to om ly and to make equitable 

r:esti tution, the case was closed on recei1)t of evidenc e that t ha t ~1ad 

been done. 

Unadjusted cases of violati ons we re f orwar d ed to the National ComplL:mce Director in the same manner, and aft er t h e t h ree warning letters 

to the respondent, as specified i:p. t he ori ginal procedure und er the 

"Regulations for the Adjustmen t by Distric t Compliance Directors," etc. 

(*) e procedure described in the text wa s c ontained in 3u.lletin 

No. 7, ~P · 1 4 - 18, inclusive. 

(**) See Chap ter III, section 6, "Evolution of em adjustment policy," 

supra. 

9861 
- 59-

Bulletin No . 7 furtl e r 1;r ovid eel t l1a t in case ei t l1er tl e compluinan t 

or r sponclen t \ .. e.ce di ssati sfi ed wi t l1 t he decision of t lte Compl iMC e 

Of f ice r, he sl1 ulcl be affor d ed an interview wi tn ~1e Sta t e Dir ector. If 

l1e were still dissatisri ed , ~1e -•acl t he rigl t to ap-peal t he case t o the 

Sta t e .Adj u st :nen t Boari, whi ch made i t s fi ndings in t he form of a r ecommendr-t.tion to tl1 e StA. t e Direc t or. 

Al l complaints had to b e treat ed c onfidentially as to both parti es. 

( *) In t he ev ent an interpre t a t i n of t:1e code were ne eded to p roc eed 

wi t h a c ase , a r e uest f or a rul ing had t o be l'l13.de t i.1 r ou gh the Washington 

of!ice t o t h e p roper Indu stry Division . (**) Th e r e was no power to continuo action on e complaint until sucl1 interp retation we r e i ssued , 

some times montl s later. 

It is app<t r en t to ev en t he casual observer that this sy st em of 

proc edure was much to o cumbersome to allow efficient operation of the 

field. Bulletin . No. 7 was so phr as ed a s practically to preclude any 

departures from i t. 

T'ne whole system was fraugh t with delays and opportunities to 

t..:1e respondents to frustra te t h e compliance :9rogram. Cases usually 

develo:?ed into correspondence battles, while t h e compliance situation 

in t he incl.ustry migi1 t b e rap i dly deteriora ting wi ~1ou t any rea l efforts 

to check it. T.:.l e ·provisi on for t he u se of Field Adjusters was a step 

i~ ~1e rig:1 t d.i r 8C ti on ,' but by t !te time t~1.e ca se had reached t hat stage 

much of the dar.1a6 e caused by t h e barrage of letters had been done. 

This all resulted in a t;rea t deal of wasted effo rt und time , when by 

the emergency nature of t :n e j cb and t h e inadequacy of facilities to do 

t il e work, every ounce ol~ energy and ev ery minute was precious. 

The formality and inflexibility of t h e p roc edure, mal.c ing t he 

filing of a c -:>mplaint t h e sole basis for compliance actfvities, c ombined 

with t:1 e l i mi tecl f acilities of t he fi elcl to cau se a tendency to r estrict 

adjustments. t o t h e individu a l c o:nplainant and to acc ept in lieu of an 

investigati on a st a tement or a f fid.avi t from the resp ondent deny ing the 

facts or claiming ~1e r equired adjustment ~1 ad be en made. T'nis last was 

the £)roduct of necessi r, s ince any desi re s to investigate a compl ain t 

pro·pe rly were successfu.lly stalemated· .. ;.by t:1e absence of a sufficient 

staff for tlJ.is :;?Ul~pose a nd t ::1 e set rocedure l)rovided, which did not 

allow fo r a free u se c f inve stigators. Consequently, without varying 

from t i1e pr e scribed line of action it wa s virtU:ally i mpos sible to educate 

employers sufficiently to lay a firm foundati on for healthy conditions 

of compliance, or evan to bring f!bout momentary ·)resent conformity and. 

to ob tain r estitution f or past violati ons. 

Bea r in mini t hat t he field offices were up1er constant, terrific 

pr essure from c omplainants, Cocle Autlwri ties, business men, labor and 

trade groups, .wd Washing t on to h rutdle c om::.Jlaints and get t hem off t :1e 

books. In some c f tl1 e weaker offices t:1is c ombinati on of circumstanc es 

served to ba sta rdize their efforts to such an extent t hat they sought 

(* ) Bulletin No. 7, p. 7. 

(**) Ibid, p. 8 . 

9861 
- 51·-

to close cas e s ·by all sorts of devious r easoning s and t :.1e invocati on of 

t e c:'-micnli ties . At ~.l iS t 1me ce e wa s little or no stress laid on wag ~ 

restitutions. Con sequently; t h e com:plainins employee was some times re~ 

garded as a disloyal ''inL lr mer" and wa . .s required t o fully substantiate 

.1 i s cl!.arge s befo re t l1 ey woul cl be r e co ::;ni zed. 

Fortun ly, however, t h is in tolerable si tua ticn so revolted t l1e 

larg e r numb e r of fi eld off ic e s t l1at 1ey t l:rew of f , bit by b~ t; t he 

ham;~ering restricti ons of e · complaints plan of :,_)ro c edure . C9nse'1_'Uen tly , 

during t h e late sp ring of 1 934.- , coincidenta l J. y with tl1e d.e lo ~)men t 0f · 

adjustment lJOl i ci es and staff organi za ti CJ n , ~1 e field :affi ce s bega:."l 

to cast ab out f or and to find i mprovements in procedure, 1. c~1 finally - I • • • 

c ame to be passed on to t;.le rer!k.'1inder of the field t hrough the medium 

of Field Letter 125 and t h e travelling Field Representati ves. 

Before passing on to a discuss.i on of these departure s from t :1 e :_Jrocedure, t }lere should be noted two shortcu~s :.-vh ich r.,rere prov-id.ed·, in 

order tG t ake care of unusual cases requiring . sp eedy action. · 

Bulletin No. 7 p rovitled tha t wl1 enever . 1e State Dir ctor was convinced tha t a complaint conclusively set f o rth· a violati on, which t ... 1e 

resp ondent s:1owed no di spo si tion to c orrect o r adjust, 1en 'the State 

Director mig: . lt , imr.aed.iately ref e r t~1e entire record to t he National . Complia nce Director without fol lowin g the r e gular procedure. (*) Wh~le 

this looked very go od on :;_)aper, it h ad :J_i ttle eff e ct in alleviating t h e 

situation. In t h e first :place, it ap Jlied onl y to unusual cases and · 

did not vary t h e regular procedure as to e 1e great bulk of t he complaints 

rec e ived. · Moreover, is provision for a sJ.1.ortcut errone ously presupposed an aclequate investigatj_ ng fr to im11edi a.tely p rejar e -t h e evid ence 

for t h e file, since obviously Bulletin No. 7 could not mean t '1e co laint 

was to be referred to the National ·Com1Jli ance Directs r witl1out any investigation. .Aside from 1ese t wo difficulti es, even tl1ou gh · a case were 

properly p repared and transmi ttec1, it bore a likely chanc;e of not being 

acted 'on wiJ-.l1out delay and possibly of b ein g later r e turned to the State 

Office for .- .1rt 1er investigati on or attemp ts at adjustment.. Th e lack of 

a clear pol·' cy of acti cn ·in Was~1iri;ton, t he mechanical diffi cUlties of 

advanc i ng a comlJlaint to t h e st age of Blue Eagle removal and' ·reference 

to the enforcement agencies, .anr;:1 .t lle even greater improbability of the 

case o eing promptly and effectively litigated, a ll combi1).ec't' to complete 

'-the_. task of. turni ng thi s well-meant short-cut of procedure ·into a mere 

' paper plcm. 

(*) Bulletin No •. -7, p. 17. 

9861 

. ~ 
- 61-

Of mor e va lue was Adminl stra ti. v t, Or rle r X- 14 , i ssu ed Apr j l 6 , 1934 , 

which am c~e d t he pr ov1 si f)n i n :3ul1 etin No . 7 jut: t men ti on cd , by a l lov.ri g 

·t h e Sta t e Director s to r erer caJes irec t t o U. W. Attor neys , r ut her t .1an 

to the Nat1onal Complianc e Di r e...;tor . (,.. ) At t .11e t ·me of t he r efer ence , 

t he r e sp onden t wa s no t ifi ed and n. t r ansc r i p t in tri l;li cat e 'tJas sen t t o 

t he Control Se ction of e ~onp ianc e Di v isi on i n ;a~1 ng . 

Th i s n ew powe r was exe rc ised in var ying d egr ees by diff e r ent offi c e s , 

but was gene r ally found ·to b e of :Jr nc t i ca l u se . It el i mi na t ed t o some 

extent t he di ffi culties of mechanical delay in .7ash in6t on and the ab s n e e 

of a d efinite pl an of ac t ion. It wa s tl1e fi r st majo r st ep in the decen trali zat ion of t he Compliance Divisi on , and ~1 ef e of ..L r ime impo rtano.e . 

( *) Tl1is constituted Amendmen t l to :aul l e t i n No. 7, Or de r X- 14 also 

con t ained. Amendmen t 2 , gr an tinb a sin i l a r :t_;owe r to code au tl1o r i ti es , 

and Amendmen t 3 , p r ovid i ng ~1a t c a s e s t o b e r .eferr ed t~ t he U. S. 

Attor ney s. under X-14 mi l;~l t be first submitted to t i1e St a t e Adjustment Bo a rds fo r aQv i c e and r ecomnenda t ions. The powe r granted 

9861 

Ste.t e Dir e ctor s by t:1is orde r was t o al l intents and pur pose s revoked af t e r t he creati on 'Jf te Regional Of f ice syst em , by Fi eld 

Lette r 196 ( Februa r y 2, 1935). 
- 62-

IncidentaL _to the :lmprovemcnt in p rocedure as t o U-l'ladjusted case s , 

X-14 h e <i the ~c tic: l as 9ect of ·placing the State. Off1c·es in direct contact with the ar ~cms Jistri c t Att orneys . T!lroue:h th1s :nedium the field 

adci ed to its exp_e:r 1ence in the. ) royer ~lV s t 1ga~ i on 9-p d 9r epc:.r a tion of 

cases i ntended for a ct1m1 by t !1e .Jepc:-.rt 1en t of :Justice. But, through 

thes e contacts also tne.c e WdS -orought I10 'ile to the S.t?.te . Office pe rsonnel 

Wl tn 1ncre c: s1ng force t he const i tut io:>:1a l we ,: kness e s <3.:10.. the l egal d. ifficul ties involved ln the WhOl e compl i a i.1Ce _,_0rog r am . 

LJlOreov cr, the amended ·procedure of X-1<±, by its 

limited to a small ro o~t1on of the cas e s h a ndled. .L .J.. ' • • • 

was still suoject to the r s gular proc edure l a.ici down 

v sr y t <:=:r ms, wa s 

The vast majority 

in Bulletin ·_~: o. 7. 

Having cons idereci in ci.etail . th.e '_f)l ari . of · -:9roceci.ur e on the bas is of 

complaints, it. 1s int er est1ng to r e call the unci erlying theory of compliance proceci.ure, expressed a t the b egi:1n11g of . tnis discussion on 

Bull e tin No. 7, namely. 

If ·the 

such noncompliance 

promp t ·prosecution 

speedy . elimina tion, by adjustme-nt, of 

a s is due to misunderstanding, a'1d the 

of all cases of wilful nonco··n_? liance. II 

This purpose failed. of accom:pl1shH1ent becaus e of thr ee -najor 

reasons: a cumbersome, inflexible ·;> rocedur e , based solely on the passive 

policy of waiti:~1g for complaints t<' be f i led and for unhealthy situations 

to b eco·!11e so aggrevateci as finally to be r eported; a lack of an 

c.-.dequa. tely tra ined a nd sufficiently l a rge f1eld adjustment staff to 

op era t e really succ:es sfully under any _9 lan of procedur e; and tl1e i nhe rent 

absence of a sound. lega l basis for p rocee<iing, concerning the improvement of vvhich little ,,va s ev e r done to facilitate the final decision of 

the Judiciary so that th e basis Hligh t either be firmly established or 

discarded for a constitutiona l one. In conne ction with the l a st basis 

of failure, the weak-kneed and vacilla ting enforcement policy g rew 

finally to be looked u pon by industry, l a.bor and the public as a sufficient p roof that t ne Ad.mi::J.istration vvas a cting in b ad f a ith. 

The field offices, a nd those ;Jemb ers of the 'Jashingt on staff coming 

into more or less dir ect cont c ct with fielci orobl ems, strained ever y 

effort to eliminate the first caus e by develop i ng and adopt i ng on their 

own 1nitiative im:9rovements and 1aodifications of the e stablished _9 rocedure. Thes e procedure deve lo:pments did. much toward putting the Comp liance D1vision on a sounci. operating basis. However, it wa s man i fes tly 

beyond the1r power to r e:nove the second and third. causes, both of whi ch 

we re fundamental problems in complia nce admli.lstration. 

Section 2 - Development of a new compliance orocedure. As experi ence 

grew in the handling of cases, gradue l change s we re made 1n the p rocedure for ct~on on compl a ints. As these change s became established in 

practice they were usually mc;;6.e k nown to the field. a s a whol e in the 

form of 1nstruction s in Fie ld Let t ers. 

( *) See Note p. 5·5 supra. 

9861 
- G3-

Thus, in F1elci Le tter 4 (Janua ry ..... ·- , 19.3·1) e xpc>rience with the 

handling of anony.no s com ~. Lnnt.s reflc t o. 1ts lf in the following 

clar ifi a tion of !3ulle t in 1:o . 7 : 

IIAnonymous 1nt ~· wi ll b e sub Je Ct €; to a mor 

search1ng anal y s1s b efor e t e=' cU'e e ctf" d. ullon tha n \•ill signed 

complaints. l1, hmJev c r, aft.. r cl os e.Xr.! .1i'1o.tion an anonymous 

complaint appeLrs on 1ts f t. ce o be genuine n~ to std t e a ode 

vi ole t ion it sr10uld be h a ncil e ,ts any o tnt. r compl a1n t. 1

1 ( * ) 

The fi eld starf soon l ea r 11ea. tne value of thorougn ly inv estigating 

e:.nd fully adjusting a ca se . \dJust;nent de yended. to a l r ge measure on 

1nvestigat1on. If t~e a ct1vitv 01 tne of fic~ TI s r e s tricted to a single 

em:p loyee v-rh o 1 ... <i fil od a com_9 l .?. in t . ther e: w, s like ly to b e l a t .r comp laints by other er!!} loy ee s, ' hi en -: d. n e-ce s sit;_: t e the r e tracing of 

steps. This wa s cl e a rly 2n ln·:ffic i ent us e o:f L cilit.ies. iurtne.r, it 

tencied to create r esentme nt on the o'- rt of thu e ,n·oloyer at be ing 

su·9posedly sing l ed out f or oe r secution. Tnen rt lso, under this me thod 

viol tions tended to accUPJUl2 t e so th&t ~n n the complaint reached the 

adjustment stage be ck wage r e st1tutions ~e e someti~es l a r ge dnd burdensome. This method a lso h&ci tnc · d<iitional ci.ise.dvantage of not l ending 

itself too _p rog r a 1:1 of educa ti:1g emp loyers so as to enticip&t e futur e 

cases of no 1co~ l i a nce. 

Accordingl y , i t became the 9r aqtice, as the use of Field Adjuste rs 

increased, to investigate tne entir e payroll, s6 as to discover all the 

viole tibns wh ich m1ght e:-~ist . The va rious offices gre-:v to re quire a 

complete adjustment or bac'c W< .: es due all emp loyees. This Vi idened scope 

of inv c:stiga tion a.I1ci. adjustment hel -ped to a ll evivte some of the evils of 

the complaints syst e·n by rerrJOVL!g the ne c e ssity for ~nore than one invest i 5 a t ion, e'<cept l.i1 ·p. rt1cul rly difficult cases and vvhere the eJnp loyE:r s were p rsist ent v iola.tors, L.n<i by furnishing an effective medium 

for educating the employers to bring the ir op ·.:: r at1ons into continued 

compl1ance.. This "lew procedur e W.J s 0..lso charact8rized by the p l a cing of 

mo re emphasis on the us e of Field Au juste rs. 

It ';'/d.S a lso found. necessary to r:l&~<:e investig a tions on what appe21 red 

to be bona .L-icie rumors an<i ':'ell-grounO.ed i~ions. This was brought 

about by the strong 1nsistence of res~ooncie :1 ts tha t their competitors be 

maO..e to conform a lso &nd b-, the realizatio:1 t hat a _9 e rma nent compliance 

p rog r am must be ba s sd on a. thorougn educational :Jrogram among membe rs of 

industry and. the ) rot ection of U1e c·omplying busine ss inen from h1s competitor who violated the code. This wa s the germ of a new idea of 

o peration known as 11 rnass co ·npliancell, (**) tha t is, the direction of corn-

(*) :Lield Lett er 48, ~9 · l. 

(*"') Discusseci in detail belovv, .2;:.rt III, Chapt e r 7 II , as a solution 

to the prob l ems ris1ng f ro;J tne ;:neti10ci of handling l a bor comp l alnts. ~hile ma ss co l1 nce is spoken of nere as a new 1dea, 

it f ou..1d am··Jl c:: or eceden t i:1 t.:C1 e ed.JflEl.is tra t i ve efforts of the 

St a.t e Labor- Dep~rtrn ~ts, many o~· 1 u1ich us ed. t he ins-o ection system 

in enfo rc 1ag l a bor l a··'s, (u.s. :Ue:p t. of Lc: bor, ·"'omen's :3ureau 

Bull e tin 61, P.9 · 28b- 289, 307- 308 ) &!ci 1n t he Trade Practice Confe r ence Proceciure 1n vogue >7i ti.1 tne :··ed eral Tra.d e Com;nission, 

(Annual _-te·oort of Jide J.l Tr£de Corll1ission, 1932, pp . 51-54). 

9861 
- 64-

p lia.nc e a ctiv iti e s against a grou:9 as . a self-initiated. p roject, rather 

t 11an 8 single yroceedi:;:1g aga i'1st ·one employer on the basis of a complaint fil ed. by some thirci :oc;.rty. 

I n a d<i i t 1o·n to ;n[:, ss co:n9lia nce a ctivities, -;-n1cn wer e u sually 1n 

t 11e form of a survey , a n other v c..ria tion fro!TI the comi) a~nts 9l an Tias 

observ abl e i n isoL.. ted. inve st1g a tions, n ot con·nected \Vi th a _ sw~ve . or 

p l a nneO.. roj ec t, a nci origin ~ ting without tne f ormal filing ot _C?ompl aints. 

. . 

Thus, there m1ght come to the attention of the field office a 

rumo r ·that a cert a in em9loysr '.'Tas in viol<: tion, or tne office r.nght feel 

strong ly f ro:·n its g en er a l knowledge of industry c ondition s that a conditlon of noncomplia.nc e e:ds.teci . In such c e s es, the a9 Jro i:;. te Comp liance Officer caused inve stigs.tions to be ;ac=,d e by F 1eld .Adjusters, 

even though n o formal co:nplaint had. eve r be en fil ed .. The procedure 

follovved in c:.cijusting v-iolations founci by t h e s e me thods \:a s the s ame a s 

that used wh ere a ction WB.s t he r e sult of com0l c:..ints being filed. 

·The ab0 J e described faults· of t h e cOTJ.l_p lc:dn ts syste:n and the 

correct iona l deve l opments evclved a.r e mor e 0..-;J-p lica.ble to l abor compliance than to · the trc: .. O..e ·Jr c.c ti.ce 0h ose. 3y its v e ry n&ture the l etter 

type of viola tion 1.'.'e.s more su.sc e9 t11:l.e to tr eat Elent on a c omplaint basis. 

There were wide v ariations in individue. l c c::.s e s, u:p.l~!-ce l abor violat ion s, 

wh ich fell in certain fairly vvell-def1ned cle:.sses. Compl a ints ·v- ere 

usually. 'controve rsi e s bet1;re en t :P,e :re·sp onden t and part iculE r com:pet i tors, 

wh ile nonco:n·Jlian c e with la.'bbr. orovis·ions afr'ected the total relation s . .. 

of the em11l0Jier with his ;;;w r kers and tended to cause a gen eral disturbance 

of the l abor stando.rd s of the ind.ustry . 

An interest1ng sidelight o·n the decr eas1ng em~ hasis on t he strict 

complaints _9rocedur e a t this. jlliJ.cture is fo·, nd in instructions to the 

field rega rd1ng so-call ed "multip l e complaints. 11 (*) This t e rm was defined to 1nclude si'tua t ions 1.;:here more than one complaint was filed 

against the same emp loy e r cha rging t he same gene ral viola tion, i. e . 

failur e to pay the minimum wage to p iec,eworkbrs, e tc. Such "multip le 

corn:9laints, II unci..e r the instructions, we re to be bound tog ether in one 

file and ciocketed as a sing le ca se. 

Immediately follovT ing tn1s instruct1on on "multiple compl a ints, II 

the exper1ence s or the f ield \Vi th the complaints 9lan of p rocedure, a nd 

the modif1cat 1ons of t he syste;n mentioned above·, we re cry st a llized and 

a definite break We: s m< de away from .. the strict compl a ints b a sis by the 

issuance of Field Le tter 125. As has b een. mentio::.1ed before, Field Le tter 

125 undertook to establisb a co;npl ete, n ew framework for compliance 

activities. 

The cha ed p rocedure ti:1us cre c:~ ted 

the comp l a i n-;; s basis, C:t.nd recommend ed 

plaints to initiate activitie s. (**) 

eco ni~ d the ne ed to discard 

strong l y the us e of of fice comThe s e of f ice comp laints diff er ed 

(*) Field Le tt er 119 (June s; 1934), p. 3 

(**) Field Lett er 125, pp . 9~ 10. 

9861 
f r om t he ee rlier conception of l!Olnpl cnn s , i n . t11at t e latt er \"Je r e f1 l ed 

by t h ird p(. rsons pr swnab l y l1 G. V 1ng. a 1r st~hc:-: n l.<nowl edge of tne via-· 

tion~. ll eged , wh ~l e th ~ fo r m r c l t ss of GO~o ai nt s origin c ted \ 1th 

oembe rs of t ll e co m}l l<:mce st aff a nu ¥er e baso...d on hear sa;; , r umor s I 'a nd 

susp i ion . 11111 ~ t he us e o:f of1'1.c e com9l a i nts \ 8- S man i f e stly 0:9en t o 

abus e by ov c r- z a lous memb· rs o· t 1e ste1:f , su f1'ic1en t so.feguar d exist ed 

in the pr a ctica l l i · ite:1ti ons of the l nv enti :1;d. t i ona l facilities of t he 

va r ious offic e s . 

Among th e occasions r:h er e the us e or office com9laints \1as 

sugge st ed we r e ; \·, he r e an e·n? loyee r e-o or ted ·· vio l ..... tion but r efu sed to 

sign a co m_;.J l a int for re ar of dischar g e ; --rh ere a c omp l a int h vd b c. e n r e -

jec.ted but the off ice consider ed the si tuRtion a.ll egeo. sh ou l d b e inve stig ated ; . wh e r e the comp l a i nt ving b een substa nt i a t ed the adju~t r qe- l i eved tha t v iol.. .. t i ons orobab l y exist ed i n o'the r establ ishments under 

the same nanageme nt ; '.-;-h er e ~Je teci r umor s ex i st ed as t o v i ol a t .ions i n 

an e s tabl ishmen t I Industr y I or l oca lity ; 1.vh sr e the 'em9loy e'r s e eking i nfo r ma t ion indica t ed the ex istence of a viol&t i on. (*) ' 

The g r aft i ng of t h is ~ew t y p e of comp l a int on the ol d pr oc edure 

s er ved as sufficien t indors.ement of mas s comp lia nce. The n ew .the ory_·of 

op er ati.on· continu ed to x~ d r. i th pr a c t ice &'1ci the numbe r of . i ts 

adher en t s gr ew l c:> r g e r I so. t h e.t by the ti"'le the :_j_eg iona l Of fic e's .b egan . 

t o. funct ion I n J .s.nu e ry I 193 5 1 i t s us e as a meth od of approa ch ·to t he 

solution of compl i a nc e probl ems had a ttain ed .f a i'r.ly wide p opulBuity and 

wa s we ll-established. among the ous fi e l d. offi c es. 

· .. Clos e] y a llied. with this ~e:p rtur e f rom t he com:9l a int s .basis was a 

g rowing e1nphasis. on t he use of F i e ld Adjust e rs. The va lue of t h is t ype 

of :9er sonnel v;- a s r e cognized by t h e Ne t iona l Compl ianc e :Board a s e arly 

as De c emb er 4 1 1933 . The minut e s of the nine t e enth meet ing , ne1d on 

t hat d<te, contain t he following st a t ement: 

1r 1v1r . Posne r once mor e r a is ed t he question of :r;> ro cedur e 

whe r e emp loyee s 1; e r e d ische.r g e <i for entering -comp l.a ints against· 

t he ir employers. Dr. Altmey e r , (le t e r Se cond Ass.istant Se cre t a ry 

of Le-.. b or a nci a t on e time Ch i ef of t he Comp li anc e Division -

Aut hor 1 s no t e ) urged t hat fi e ld r epres ent a t i ve s we r e n e c e ssa ry 

f or b, s ty-p e of work . He a dd ed t hat consider abl e .t act and 

l a bor ex-p er ienc e a r e n e c e ss a r y . 11 

·In l.iay a nd. ·early Ju..r1 e , 1934 the Complian c e ivisio l began to app oint 11 Re ~n t .F'i e l d Adjuste rs II, who wer e stationed a t va rious stra t egi.c 

~nta ou t s i de t he citi e s in wh ich t he St a te Off i ce s wer e locat ed . ryh ile 

t h e s e :a. sid nt 2 i e ld Adjus-t ers were a ttach ed to t he v .c riou.s Stat e 

Dir e ct ors 1 s taffs , i t was c ontempl a t ed that t l1ey sh ould ex.e rcis e s emiexe cut ive func t ions, in a dd ition to t he r eguior du tie s of Fi e ld Adjust e rs. 

Thus , they ~1 er e gen rally g iven a comp e ri tive ly fr ee hand. in t h e 3'-J l anning 

of the ir own co ~p ianc e a c t ivitie s a nd. ~n engag ing in uublic tions 

( *) See ~J te p "64, su·or a . 

. . . ' 

9 861 
.... 66-

work. Because of the physica l O..i st a11 c e behveen t he ir of fi c1al stati ons 

and the Sta te Offices t n er e was ne cessa.ril7 a l c r ger r e l i a nce on the ir 

individual dis c r e tion ~n n i n the c a :;e o:f ord;tn.c._~ y Ji:eld Adjusters. 

The signifi.ca nce of t~1.e c:~·Jp ~nt ment of ':ct e siden t J!·ield Adjusters in 

connec tion with the d epartur e f rom· t he co :n·ol a ints bas is of p roc edur e i s 

to b e fou nd in t he followi ng e'Ccer 9t f rom i.,;r. Swo·9e 1 s le tter of June 2, 

1934 to Stc te Dir ector s on the sub ject: 

11Undoubt edly a r esi dent .E· i e ld Ad j ust er will h ear many rumors 

of vioL tion .al thoU(':h no . \-iri tt en .cor:1pl.::: . i nt ma.y he.ve b een f 1led. 

If the rumor pp 9e o.r s to h< v a subs t 2.nc.e t he Field. _\d juster sn ou ld 

mr;ke a n i nvestig c:: tion even in t he ab s en ce of a spe cif ic comp l a in t ; 

In ·only r e re inst011ce s s11ould. t:ne :;f i el d Adjuster a tt emp t to adjust it. by writing a l e tti:'.r . . • . . · 

"-The (Resident) Fie ld Adjus.ter must : spe n<i the great er p ortion 

of h is time on ou tside yvork , .con t a.ct1ng the ' em'9loyers and investig a tlng not only fil e<i co laint , but a lso rumors of viola tion 

v::hich may Qome to him." . ( *) 

This statE?ment was .followed el even days · lat er by the issuance of 

Field Lett er ·125 and Suppl err1-.mtary i-ii.e r.:10randum IJ o . . 1 to Bull e tin :-Jo. 7 , 

which l a tter, in modifying , the _earlie r ·Manua l for Sta te Directors, said:. 

"The State ir ctor .must use his own judgment in d e t e r mining 

t h e p rocedure which will ·ne most effective and ex.pedi tious in a 

p 8rticula r c a se . . Bulletin 7 do e s F.~.ot· l ay down a s e t cjrocedure t hat 

must be rig idly o:bs erved i;a a.ll ca s e s. ·or examp l e , i .n ste ad oi' 

CE rry i ng on .Prel iini n&ry correspo.nden ce, it may b e b ette r t o send 

an a.djust e r to int e rvi e'.'V the resp ondent or· to a sk t he · r e sp ondent 

to appea r at the off ice of the . S.ta te ~ir ctor." (**) 

Fi eld Letter 125 stressed the value of office and fi e ld intervi ew s 

in Adjustment wor.k •... It ~urth r suggested t h e elimination of a forma l 

notice to the 'resp ondent g1ving the substanc e of t h e ·compl a int, nd the 

substitution the refor of a lett er co!1 t a 1ni:-1g mt;rely a brief invit a tion 

to ca ll a t ~he Comp liance Offic e. It like.,7 is e r e commended. t he prac t ice 

of dispensing with a ll 9reliminary corre spondenc e , a nd mak ing t he initial 

cont a ct with t he resp ondent by means of a f i e ld intervi ew . (***) 

(*) In N"'AA Studies Specia l · Exh ibits 'Vork ': ia rials # 77 . I b id, p . 5. 

(**) "Supplement a ry M.emorandwn Numbe r Ohe Re l a.tive to Adjustment of 

Comp laints", p . 1 (unde rlining supplie d) • . In sp it e of t he underlined portion of the quot a tion, 1 t has b een :9reviou sly '_ p oint ed 

out tha t t.h e convers e is true . This ';.ras cle arly a n a ttemp t to 

rationali ze and to r econcil e t h is ·memora ndum, Fi eld Lett er 125 

(both issued by the Com·olianc e Division), a nd t he a ctions of 

V&.rious field officials with the p roce<iure c reat ed by the.Admini stra tor in Bull e tin No. 7. 

(***) Field Lett er 1 25, p .ll • . 

9861 
- C7-

In this con.1J.ect1on Field Letter 2~) s:: id: 

"The comp li anc0 QffiL:t.. r 1s un . ,r: ' no obliration to establish 

the fact that a compl ain t a b;;en filed . i or the prot ec tion of 

the comp l a1nant it is .... dv s<. ole 1n mar ;;r instanL.es not to inform the 

employer that 2 spcc1fic t.;Ompl cunt has been 1l ed '\ga inst him. 11 (*) 

~ 

Field Letter 125 also 9rbvide6. a guide for tile thoroughnGss of 

investiga tion. A detailed a ccount of the ?ro9er co'l'ltents of the case 

files was given, and a que stio·maire fo1·m fo r int ervi e 'IS .i., i th em9loyers, 

as well as a form for abstract1ng payrolls, wer e included . (**) 

Thus, it is se en that, begin.ninP' :1 ith I:,ield Letter 125 , June 13, 1934 

and 1n the !?eriod of development thnt follohed, m ·rked departures were 

made f r om the cumbersome , 1nflexibl e , and l a1 r c, el y ineffective procedure 

established by the Regul vtions of October 19, 1933 issued to Distr ict 

Compl1ance Directors and by Bulletin No . 7, covering State Directors and 

Code Author.ities. Under -the old proc edur e all com:9 liance activity was 

supposed to be predicated on compl aints, which had to fulfill certain 

technical requir ements, and a l most the entir e bu:r<ien of proof, as we ll a.s 

the ~nitiat ve , was thrown on the complaining employe es ·c:ind compe titors. 

The nevi/ proce<iure was deve loped out 01' t tle necessities of expe rience, 

influenced gr eatly by the powerfu l psycholog ical f~ctor of a new reporting 

syst em whereby fiel~ offices felt that their effici ency, value and 

r eputations were on constant judgment by the numb er of violetions discovered o.nd adjus ted and the amount of back wages collected. (***) Le ss 

and l ess str ess was l a i d on tne filing of comp laints c.. nd on the important 

pl ace of the complain&nt in compliance proc edur e , except as one source 

of informa tion. The us e of compl aints a s the basis of proc ee.dings was 

never entir ely eliminat ed, although it wa s generally contemplated by 

persons connected with com!? liance activities that a decided step would be 

made 1n that direction after the passage of the new l eg isla tion which was 

pending when the Supr eme Cou rt decision 1n tne Schecht er Poultry case 

abruptly terminated all efforts at code complianc e . However, it should 

be noted in illustration of th e final rela tive unim ort &~ce of complaints 

that on May 21, 1935, in a letter to a ll Reg ional Directors, the Chief 

of t he Complianc e Division pl a ced a virtual sta tute of limiations on the 

filing of complaints, l eaving each office to exercise its own discr e tion, 

according to certain st andards, in d.etermining whe ther or not the complainant had been guilty of lache s in failing to report the violc:; tion 

promptly. (*~**) 

( * ) 

(**) 

(***) 

(****) 

9861 

Ibid, P• 12 . 

Ibid, pp . 19-20, 24 , 27. 

See Chapter III, pp . 29- 30 , for a discussion of the eff ect of this 

reporting system on tne evolution of an a<ijustment policy. A 

brief description of t he system of rep ort 1ng is there g iven . 

A copy of this l etter is included in the append1c e s. It provided that the off ices should be gu ided by the following general 

rul es of thumb: ordinarily, a compl a inant still employed ought 

to r eport the viola tion wi thin 60 day s after it had occurred; 

an employee who hc:.d been discha rged or dismissed should file complaint within 30 day s thereafter. 
--68-

Of course, betr;; een June, 1 934 and y 27, 1935 there ':'T ere many 

developments in comp liance t e chnique and in ~inor 9rGcedural p oints. 

However, for the sake of brevity a t t h is ·po i nt the se developments are 

left to discussion L1 subss que:1t · sections .~! re they \7ill be treated in 

<ietail. . 

One more modificatio~ of Bulle tin No. 7 shoul<i be ~entioned h ere 

as having a noticeable effect on _ti1.e movement to d iscard the complaints 

basis. By Administrative Or~er the practice of sending comylaints to 

Code Authorities "on .reference" for adjustment :-: as abolished as of June 

15, 1934. (*) This class of compl a ints was thus a<i<ied directly to the 

onus of the fie).d offices a nd. it beca:ne, to a v e ry slight degree, easier 

to treat all co:nplaints according to the nerdy formulated proce~ure •. 

The ·order further provided that Code Authorities which had been 

authorized to handle pc· rticula r tY.?es of complaints ''in the first instance" WO\lld continue to operate in the same manner under the designa.tio:r: 

"officially author:iz.edn. T11is r;as important because the Code Authorities 

which h a d been authorized to handle labor complaints were mainly organized 

to operate on an inspection or mass complia nce basis and, therefore, 

in<iirectly additional impetus· was · given to the mov ement away from a 

strict cour_plaint s. syp tern. 

(*) Admi;1ist:rative Order x:...29 (l~ay 12, 1934). 

9861 
- 69-

Section 3 ..; The i•veltopme nt f the use of Fi eld Ad,ju er s . Unde r the 

original procedure for Dt~t t Compliance Cff iecs , as shown in the 

first se cti on of this: charte r , the initia l st ep i n the a t ual handl ing 

of an a ccep ted compl [l.int was t o notif y the r es ondent f"lf t he sub stan c 

of the viola tion char ged and to invit e his answe r t~. A opy of 

the code o ..m: nn eJ\.-planation of pe rtinent provil!!i ons we r e a l so furnished . 

This first contact, which was almost invariably by l e tte r, had a 

tw0-fold purpose . In the first place it was suppos ed to s erve a s an 

easy, nature .. l way to l ead up to an acijustment. At that time adju tment 

had a3 its g1al the obta ining f p r es ent conformity with the code and 

the a ssurance of future cnmplia.nce. Lit t l e attention was paid to r ecompense for past violations. Cortse.quently, the simple st mcth~d of 

apprnach was to say to the r espondent, "It has be en alleged that you 

have violated the code for your industry by paying your night watchman 

less than the min.:..mum wage. The code provid~a t t.e.t you must pay this 

class of employee not l ess than· at t he rat e of ~. 0 pe r w~?-ek . Of 

ourse, if the s e fact~ a r true, we r ealize the violation was probatly 

due to ignorance or :\.nadve rtence . Therefore, we invite you to furnish 

us with your exp ana~ ion of the above complaint, preferably in the form 

f"lf a swo rn statement ,II c•-.) The prnbably effect of such a lette r on 

the r espcnds nt in shaping his answer to the complaint is obvious. 

In the second place, the notification sent to the r espondent was 

intended t o fulfill ce rtain lega l requirements hich we re supposed to 

exist. It was fe·lt that the constitutional pr ohibition against depriving a man of his property without due process of law (~~) made it 

ne cessary to adopt a semi-judicial attitude and to furnish the respondent wi th notice 4f the charge s against him and an opportunity to 

be heard in his own defense. While common fairness suppnrted the latter 

part of this conclusion, it was found to be administratively unwise to 

deal v.ith viola tions in a manner so resembling judicial procedure. 

This feeling toward the restrictions of due process of law was 

closely allied with the dual presumption f'lf .. the innocenc e .,f alleged 

code violators and the l e.ck of intent to violate where nonc.,mpliance 

was established. This, in turn, lead to the logical conclusion that 

the burden of procf should properly be tn the complainant. The presup!)Osi tion, insofar as labcr ·complaints were c•ncerned, that the employer and employee stood on an actual ~arity in ability to enforce 

the ir legal equality cf rights, seems to· conflict with one of the 

underlJing theoriec of l abor legislation. In an early l eading case 

( *) . Th d b is is a paraphrasing ·of t he form letter actually use y 

District Compliance Directors. See not e P• 33 sup ra. 

(*~~=) Constitution of the United States, Fifth Amendment, 11 No pe rson 

shall be deprived of life,: liberty or property without due 

process of law .11 

9861 

The reasoning placing a strict application of this principle so 

as to require a formal notice to the respondent in the initial 

hru1dling of a complaint is of questionable soundness, since 

neither the regulations .were .promulgated no r we re administrative 

sanctions invoked at this s t age of proceeding . 
- .. -70-

·. ~ . 

upholding the · !ight··;or a . sta-t;e·:ilnder its. ·p·q-fice power to ena.ct l abor 

legislation limi tipg · the hour::? of em·oloyt(lent of me:h yrorking in mines 

and · s mE? lters; · the Uni't;ed States Supr~ e .Court sa i d. : ... . . . 

·. 11 Tn e · ~e l, tur e h a s also r e cog nized the :r a e t, wh ich 

t he experience of ·l -egislators in 111any states has 

.. ~qr~ obor ted ,. tha.t the proprietors. of ·these es..:.. 

· · tablish.rnents and their o·oera.t ive s cl.o not stand uoon 

. · .'equa.lity, and .. t hat th ir intere sts a re, to a "'" 

c~ttain extent,' .conflicting . The former ne.turally 

clesire ~o obtain. a.s: much 1~ bo:r as possible from 

the i;r em~o l.o yee s, Dhile the ;l a tte r are · often ·induced.· py the f eaT· o( di~cha rge to conform to· regution · whicl;l· the L~ . .Ju?-g!Il,E? :r:tt, f .airly · exercised, 

VIolild :Pronounce,_, to;l?e .. ·cietrimental to their health 

or strength. · In oth(3 r words, the proprietors lay 

c!.o \m th~ rliles a nd . t he .l aborers ai'e practica.lly 

contrain ~~t..o ob ~, them.. In such c e;ses s.e:lf-interest 

is qften an :unsaf o guide, a~d the legis.lature may 

pr.omptly interpose its ·:authority .u (*) 

Origi~aiiy, .such investigation as was made had to be conducted 

through correspondenc~. e...nd office. int rv ie vrr s wi~h the respundent. The 

respondent usually denied. the existence- of the· violat.ion or pleaded 

ignorance ·e1ncJ. good fp.i th and professed .- ' desire to. comply in the 

futux'e. On this basis the c a se wa~ clos.ed -a s adjusted. 

Field. offices ~;rere forced · to accep t at their t'ace value state -

ments an~ a£fidavit~ of respondents, which by experience and better 

re a soning -the field officia ls k new to b e false~ Conscientious members 

of the field staff chafed and fretted .under this spurious, ·legalistic 

procedure a nd made varied attempts to improve the situation. The disadvantages of ,-this sy~tem communicated .themse:J_ves·· t-o the . officials in 

:.lashing ton; sq that,, in dis'custing the plan for· a permanent govern-· 

ment al c.ompl}ance machine ry , the National ·.compliance Director sai d , 

11Lil:e the temporary a rri!Fmgeme;nt, t h is plan provides· for 

a reg';i.onal syst.~m t.o a :i,-cL: in the D.djustment of complaints· 

o.f v,iolations of pp :r ov~d codes. ---· Like the ·tempbra r y 

arrangement, it is l1aded. -up on th ~ hypothesis· that the 

g reat ma jority of C<?mp;Laints · are due to . m'isunderstandings 

vrhich can be adjusted_ by education and info rmat ion, by 

corre suondence a nCl. conferehce. It is a l ·so based upon ~ . -

the hypothesis . tha.t to effect t h is·, there must be 'V>Te ll 

L1for med agents in the f i e l d - - - to adjust t he case 

where it a r ises B.nd. to II).c.!-::e ·fai r finding s of facts.---

11---Thes e State DirectoJ-s will have a. suffi c ient staff 

o:f .a ssistants an<i aG,justers ·to dev e lop the ·;facts and 

adjust compla ints by ed:ucat-ion and information a t the 

"P lace whe r e. the com:olaint a rises, as ·f a r a s . is prac-

-t icable .. " ( :"*) . -. .. 

(*) olde v~ Hardy, , l69 U.S. 366, l -.c.397 , 421. Ed-. 780 (1898). 

See 2.lso Commons and 1u1clrews, "Prine iples of Labor Leg islatio:..-;. 11 

(Ha rper and :Brothers, 191 6 ) p '9. 28-30. 

( **) 1Jilliam H. Davis, National Comp liance Director, 11 NP..A Plans for 

Coc:_e Comp liance, 11 Decembe r 5 , 19':1 3. 

9861 
- 71 .. 

It c::une then to be :cealized as a fun0.amentc-l concepti on of compli~tnce -:-.t;ministl .tio·1 till"t :investjg<'..tion nnG. adjustment \'rore intc rdepend.ent e nd inseuarable , and their combinntion FCt.S a n indispensable 

element in the enforcenent. of tl e codes . The ~·o :: of ac1justment had 

,s l' p rerequisit e. n. t1orough knorrled,o of t he f e.cts , env. inve·ti{ro.tion 

'as of little mome· t if the ev i ls disccvered "'ere not subsequently 

corrected . 

1Jitl1 the creat ion of Fio ld Adjuste r ... •ositions uno.er the StCt.te 

Office syC" .. am , rnC'L the g owing recognition of tl1e va lue of pe:..sonal 

contact wi h e::1plo~rers a '1c"_ of £'1.ctive inve r. tif,:ation, the ne1.1 clnss of 

pe rsonne l •"oon c.ss,..:uned 1.:-.rge i!:lpo ··t c..::1ce ~ r~ the organizations of the 

v ar i ous of. ' ices • 

In the be 0 in·1ini:= . Fiel d Adjuste rs we re a:q~:e ~·· untra.ine d for the ir 

'··orl-::: , altho-ugh Llcn~r 1-:.r· .. C:. 1Yi.'actical ·uusiness o::;..:perience or a ~u im ntary 

J:no1.1ledge cf l e." or acc0u.nting . The ir u se , e.t fir st, as provided in 

Bulletin ~~o . 7, rtas trl Ret c.:.s ". su -plement to corr esponc;,.e nce ancl 

office int e rvie'.:s, im·es:igat LlG on=-J t hose c ases r:hi ch \"e re not adjusted b-r t~1.e l atte r tr-o me ";; }-l a c_s . Ho···eve r, as ex-~e ience grew in the 

use of fi e l d i nspc c tior..s .: nc_ fi e l d in tervie':.rs, the comp liance staff took 

g r oa.te r cognizanca of t~1e aclve.nteges of a n ad.equate, ·we ll-tra ined g roup 

of field men. On the pa~t of the ::9 rog r e ss i ve nt in the Comp liance 

ivision, at l east, the r e wns a co resp on~ing cons cious e ffort to train 

Fie l d Adjusters anG. t o p l a ce SOEle r equi rements on the po sitionsf 1rhich 

bore n eason bl e ::;.·elo.tion to the c.e t e rrninat i o!l. of . the : i t~ ss of 

e.pplicants nnd · incl.lT.1bents to fulfi~ l the func t i ons. 

I t has been alr e['.d.;y no ted. thc-.t by J1.me , l S34 t he u s e of Field 

Acijus ters i n the i ili ti £>1 inve s tig:-·.t i on c..nc'. ao.justment of comp l c:.i nts had 

been so incre as e (!_ th0.t P::.e L '. L"" tt "' r 125 sugPested. t he abC).ndoTl!Ilent of the 

first le tte r of notificati on to tl:e es~onc"t.e nt in favor of en infon10.l 

invitation to an of fi ce i nte rv ieH or £>.n l.illc'l.l' .. nou.nc d. vis it ~,. tlle Fi e ld 

Adjuste r t o th8 responC:.ent ' s plc-.c e of busine ss. ( *v In connection with 

the latter alte rnative , Field. Le tte r 125 said, 

11 In the resul ting in t erv ie':T ho'.rrs of r:ork a nd. s c a le of 

\'a§:es C?Xe discussed . .. ~. r..d the s ituation c c..n bo clea r e d 

c r adjusted fr.o.nkl y an _ 1 ... i thout r e se ::.1tm<J nt, since the 

Cl.j ust e r has the opp ortunity t o s eek the en~~") lo ~rel~'s 

coope ti on before he h['l.S built U}J an attitude of 

se::.1.tnent .::::.r .. o .. de f ensiveness. II ( **) 

~hus, it is s e en t b.at FielC'. Le tte r 125 cont emp l !".tec1 that the initial 

steps t onarC'.. tl1.e a.djust.:nent cf c a ses should. be tal-en by t he Field Adj usters. This att a ins s ignificance as a tol:en of the c::ant;es go ing on 

in the Co:rr..p liance Division, its p olicies, me t hoo.s of org8.ni zation, when 

it is comp ared. Fi t ll t l:e orig ina l provision of Bulletin Ho. 7, previously 

oentioned, and uffice int e rvieFs. 

( *) Su:0ra u 6'"' - ' .J,; • I Fie ld Lett e r 125 , p. ll 

(**) Ibid , p . 12. 

9861 
-72-

At this point, brief ment ion should. be me.d.e of the approintment 

of Resident Field Adjusters, as a nother eviclence of the movement to 

direct adjustment efforts as much as possible to inspections and interviews at t he situs of the violat i on, the respondent's place of 

business. This v7ns in har ;nony with ~1.e stateme~t of William E . Davis, 

National CoQplia nce Dlre ctor, 

"The plan provides for at least forty-eight State 

Directors. In ce rta in of the la:;_·g e st2.tes, i t may be 

necessary to have b:-anch offices. These State Director-s 

vrill have ;:;. sufficient staff of assistants and. adjusters 

to develop the facts e,i10. acijust complaints by education 

ancl informati on at ·t he pl2.c e 1.'"here the complaint arises, 

as far as is p racticabl e .---

"---it may become ece sa " for State Directors to place 

r epr e sentative s out in the f i e J. d in CO!Jmunitie s where 

a great volume of unac.justec. comp laints arise. II ( *) 

The ide a s E!mboclied in t he a-oove quoted. statement r e ceived recognition after experience in code coml_;l:t_ ia.nce v-rork had br<::mght about the 

realization on the ..~.. uart of field. • exe cutive s th1i

• t a ...L: urouer ..L. understanding of comp liance problems ne c essi te.tecL the ir becoming familiar 

with actual employmei1t and competitive concLitions. While a part of 

this process of attaining familiarity with t he problems included e.ctual 

contact with em:plo;yers and Tior1>:ers at t he p lace of employment, and., in 

the c a se of trade p ractices, 'ii'i th C01::Ipet ing busL1.ess men, the time 

elemen t invol~ed in the exe rcise of e~ecutive funct i ons precluded the 

ne eded comp;:-ehens:i.onTs be ing based en ir y on first-han<i lmoqledf;e . 

Consequentl~r , the State Office s Tiere practica lly constr.sdned to depend large l y on the r eported experience of their field agents fo r their 

factual b a ckgrounds . 

Therefore, af_l;er the defi:1i t e indo rsement p l aced on their use by 

Field Letter 125, it Pa s natural that the Field ,Adjusters ryere intrusted 

with a l arge proportion of the public relations v-rork, in connection w.i th 

the adjus ·~men t of cases. I nr::Iucled in this term we re the creation of industrial good will t m-:-::r:-c1 tlJ e State Office , end. t he educa.tion of employers to their obligc:-.ti ous c:-,:1ct to the pj ·.,s ano. benefits of NRA. Many 

offices ins t~cucted hcL.~ e..dj"L~cs ters tr e_,-e rt t heoselves to create the impressions of f airness a.nc_ of c~.e ir e to a ssi s t tr .. e employers in their 

difficu.Jties. I;ikeni se : it vras a stanc:arc~l. dut~r of Field .Adjusters to aid 

t.he emplo;rers i n instal ling a:1cl maintaining adequate sets of records. It 

was also ~:: tomary t o .s.<lvise 2n<i help i n preparing petitions for exemption, 

etc., vrhere coi.:.::>i<le ra cl !)~r t he State Off:i.~,;e to be justified. It is not to 

be under.s ·~ ooJ b,i this l ao t thc·.t t he s·~c.':·":: (Jffice s tool: the initiative in 

this resjject, O'\ihe.r t:t~an by <i· •;ris L. g res:?GI1dents of t:1eir rights, where 

necessary. By a careful , slow builQing up of a reputation for fairness, 

and by the equa.ll;t{ g racl.ual creatiOil of g ood will through education, the 

State Offices pursuing this policy were ab l e to. gain. sufficient presti ge 

to partially offse t a shiftin£ public op inion and the enfor cement failure s 

in the courts. 

( *) Note p. 6'9 supra . 

9861 
- 7" 

As a part of the c~rcle of development , the ronint; popularity 0f 

t:1e ffil'SS conplin.nce s~ ·ste.· 0f ope etion neces ~.riJy ac~ 'ed vr .iPht to the 

l:·ea~· stroncs em~ha·~is on the use of ~ielc Adjuoters . 

In A1.1gust , l 0 rz4 , Fie lcl AC..justers received an add.ed minor function . 

13;>7 Office OrC':.er it YTas e.:, ·Gablishccl tr:at Divis iono.l and Deput~r .Administrator s having . before ti.lt.-m petitions for ~:mmp tio::J.s , et . , might request tho Chief of the ompliance Division to assign f).elcl investig a -

tors to d iscover any pe.'.til1ent and desi:i.'ed factua.l data . ( *) .Alt 01.1.gh 

definite f j··ur s oncer::1inb t:1is usc of Field A.c.1usters are n ot o..vailable , 

it is not ".. li ev3 ~ tllr'.t this proc0dure eve}.' att~ined r eal importance 

generally. It is nentior:.E'd cniefly as an illustrc.t ion of the trend 

of ovinior.. on this 5 enen:1 subject • 

.Altho h tl e main ter..c enc:~· wc>.s in conformity with the sugge stion 

in Fie ld l ette:i.' 135 , tG Lli t:'...:tte actiO"c1 on a C0m::9 laint by making a 

field investigation, nc;:or thele ss c0rresponcle::1ce and ~ffice interviews 

continued to be us e d in E'. l c.rge nuJnbe r of the St2.te Offices, mainly , 

in connection ui tr Crt'iec; involvin_; t:·.e service :~adcs and other intra state inclustries n:.e~t,.; ~ was c"'..C' ;;.:.. reC.. to consGr v e t~1e time of t he 

Fie ld Adjusters in t.1e i te:;:e.,.-~s v:': off icier_cy . In at least one office 

( **) it ·nas the p:.:ac tice th C~f:)l cu"G the his tor~- of comp liance activities to rely ch i e fly o·1 office int ervi e\.'S. Howeve r ·, t h is last was 

due to unusua l circumstances &1C: cruu~ot be t~-en as repres entative of 

all the fi eld offices . 

Section 4 - T~e dir ection ~d superv1s1on of Field .Adjusters. Clos e ly 

allied Tii th t he dvvelcpi..1ent of t he interna l organizati on of fi e l d 

office s, o.iscuss e d in ~1e pre ced.i n.g chapter, and the increas ed use of 

Fi e ld .Adjusters in compliance t:orl:, j ust mentic·ned, is the top ic of the 

contr ol and su-o~rvision over tl:e s.d.justment staff s of the various 

office s. It ~ obviou s that , i n .:11:. orgc-~n i zEJ,tion in vrh ich the actual 

investigation &J.d. adj us-'cment of case s \7as de l ebated to subordinates, 

on r;rhoce ind ividual j u0.gment , discretion and. ts.ct much reliance uas 

ne cessaril,"r nlac.ed, i t was of nri me imvol·tance that the executive staff J.: ... ... 

of the fi e ld office ~ould devise so~e thorough- g oing and workable 

system of supervision an0_ control. This problem of the direction and 

supervision of the dail:r e.ctivi t i es of Field. .A<.\just ers did not begin t o 

have significanc e until about the late sp ring of 1934, because the 

occasion f , ~ the de velopment of t h is phase of intr a-office organization 

h acl not ye ·· arisen . ( ***) Roweve r, ·ni th the deve lopwents in compliance 

p rocedure ·. -~"li h brought the use of Field Adjusters to the fore, the same 

eJI."}Jerience that haC:. pointed out t:le fallacies in the origina l organization scheme of J:3u~letin No.7 sr ~1ed the n e cessitJr nf the Labor 

( *) Office Order 107 (Aucust 4 , 1934) . Reiterated in Office I:ianual, 

III-3233 . 3 . 

( **) The Ne11 Yor : Ci t Jr Of f ic e . Here the extreme concentration of 

i nd.ustr:r in a re tivel srJcll area, t he presence of a l arge 

nUIJbe r of Code Authori ~~ office s, al"l.C. the existence of other 

local factors and chara cteristics contributed' to'make this 

t he most effective urocedure . J.: 

(***) For the reas on thct ~w Fi e ld Adjust e rs were appointed before 

9861 

that time . . See Chapter IV, liThe Orit:; in and Deve lopment of 

Fi e: l d,Of :fice s,u supra . 
., 

- 74-

Comp l ianc e ""ff icer' s _or ganl zlng , direc t i nG and super vl sl ug the efforts 

of the persons unde:r;. h i m, t o wl1o-m had be en de l egated the t a sk of carrying 

out his broad LL~ct on s of ob t ai ni nG l abo r c omp li anc e . (* ) 

. . 

- Howev e r : ev en a s ea rly a s :Bull e t in No . 7 s ome p rovi si on wa s m<?:de 

vvhi ch .included t he a ctivi ti es of Fi el c1 Ad j u ster s i n t he cen er al organiza tion plan. It wa s t h e re p r ovided t h a t the Lab or ancl Trade Prac ti c e 

Compliance Offic e rs sh ou ld oe r e sp on sibl e fo r the a s si gnment cf _coiTr-< 

.;plaints to t he ir Fi eld Adjust e r s ai·ld for the suv ervisi on of their · . 

a ctivities in mclcing n e cessary inve stig a t i ons. Fi el d Adj u sters we r e 

also t o make daily and week l y summari es of their a ctiviti e s in q,ddition 

t o r eports on each c omp laint hancll ed ;y~ t heme (* *). I n ac1di t i on to -

t hes e g eneral inst ructi ons, ·t here vvas p re s cri bed. a f orm fo r the Adjuster 1 s r eport. ( ***) This rep ort fo r m included qu e s t i ons. conc erni ng 

the name and a ddr e ss of t he em;;:> l oy e r, t h e name ·911d po siti on of the 

person int ervi ewed, t he na tur e of the rec or d s exam nee~ , a de scr i p t:j. on 

of the vi o lati on discov erecL, t h e em:?.loy e-r' s a ttitude and. -any statements 

made by · him, and t he AO.just e r 1 s r ecommenda ti on s f or :further dispositi on 

of t he c a se. There were also i n Bulle ti n No . 7 (  -) and in t h e fo r m 

desi gnated as 11 I n structi or:1s t o l'ffiA Adjuste rs 11 , (** * ** ) g ene r a l sta t e- · 

men ts of ·t h e method of appr oach t o b e &.~e n by Field A-d juste rs in i nter ewin ~ empl oyers. Th e Je instruction s str ess ed t he fact t hat the 

Field Adjust e r had no author·i t y t o r-equi r e the p r oducti on · of r e c ords 

or t h e furnishing of infor mati on. 

· At 'first glance, it appe0rs t hat the provlsl ons f or t he dire cti on 

and superv'isi.on of Fi e l d Adjust e rs, menti on ed abov e , served a s an 

adecpiate tr eatment of t l'fe sub j e ct.-. Howeve r, it must be r ememb e r ed i n 

this. crmne ction that ther e · were f evv Fi e ld Adjust ers on t he Stat e · :f.fi ce 

staffs a t t his time a ncl. t he ir us e was limited by Bulle tin No . 7 to 

supplement. the t wo mo r e popula r me t h od.s of a dj u stment, namely , c o:r:r e sp onden,c e and office i-"'\t e rview. (  ** ) It sh ould b e no t ed a lso that 

the r e was no clea r p rov i si on f or a system of initi a lly training Fi e ld 

Adj u ste rs ·and of ca lly r eviewing t heir wo rk . ~use of t h e 

r el a tive unimpo r tai1.Ce of this cl a s s of personnel in the gen eral CQIIr 

p liance -p r oc edure l)rovide Q. in the early :::J e ri od under t he State Off i ce 

s y stem; and a lso due t o the g en e rall y 1c; se or gani zati on and the i n traoff ice jurisdictiona l difficu lti e s exi sti ng during t h i s tage of development, l i ttle attenti on wa s ac tua lly p a i d by t h e tat ~ ~f ces t o the 

previously des crihed instructi ons and to t he us e of t he;- Adjust e r's 

r epor t fo r m.(* ***** *) . 

( * ) 

( ** ) 

( * **) 

( *** * ) 

( ** ***) 

(  ** ) 

(* ****** ) 

9861 

As· :p oint ·ed ou t i n Ch <";!:;_J t e r I V, Sec ti on, 4 , i n the l ate spri nb 

and earl ;;c summe r of 1934 , when t he p r ob l em of supe rvi sing the 

Fi e l d .Ad just e rs· b e car.1 e import an t , t he a ctua l or g~ zat io n 

of fi e l d off i c e s lw d been chanA; ed s o the,t ~ .A-dj u sters we r e 

p laced und e r the Le bor ·CcmJ? l ian ce Offi ce r; inst ead of unde r 

h i m and the Tr ade Pr a c t ice om a11c e Cf.f i c er, as p r vided 

n Bulle t in No . 7, p . l G. 

Bull e t i n No. 7, page 19 . 

I n NRA Studi e s Sp e c i a l Exhibi t s Work hia t eri a ls #77 

Bulleti n No . 7, p a g es l G.Pnd 20 . 

A COlJY of thi s form i s i nQ) u Q. ed in t h e append i c e s. I t . wa s 

l a r g e l y a r e st a t emen t of t h e provisi n s i n Bull e tin No . 7 . 

Sec ti on 3 , 11 The dev e l opmen t of t h e u se of Fi e l d Adjust ers," 

p . :69 , supra. Se e a l s o Bulleti n No . 7, pp. 15, 18-20 . 

Chap t e r lV, PP • 54- 58 . 

d 

II 

l 

s: 
-70-

Coi!lcid.en tally with the deve lopment of the i "1. t rna.l or .gr- ni 7.ation 

of tLe Ya.rious fie l a.. o:n.ce s pn l t:1 incre · eC:. empha"'i..., on t 1e use of 

..!'ielll i.just Gl'S , t ho v 2ri ous Stu e Ofr ic8"' b egan to f.~v8 lcp m ke -

shift systems for r -vi ev7int; and supcrvislng the work of their Adjust(•rs . 

Inasnu~h as Fielfl. Ar\.ju:>t"!l'S .::une to be us ei. more: in t he lnbor phase? oj 

cc ·::> liallc.f' , t·. e d.u:.:· o c·,·ol·rln.s these m~th0cls of control a ll 11pon the 

Labo:t Conml·i a..:ce Of~i l;rs . 1hu'-> , in Gome of t he stateG tho Ld.J::tster"' 

wero quired to f i::.l out r:1 ··.ce L..OrrpreJ.1en.:> i v e e~or t s tha n t he qu.es tionnaire form crig inall;y- supQJ. i e cl. ( *) IJtl·ew i so , the r e came into u"'e in a 

few of the of ~e s 11 clos·u.re sha e ts" wh1.ch we1 e r J ced on top of tlle fil e 

ar-d r.rhich '"'ere desig ned to contain a bri e f swnmc..l)r of the: h istory of the 

cn.se and. its dicl::-osition . These clor> e c:~ieet::;•· alld t he mo re cmnprehensive case re:9orts required, r~erc coinbined v:.ri th r.t critical rcvie\7 

of the :~amlling of e e.cl1 inoividual 01!1p l aint . I n some offic e s the re 

were i nitiat; d. ys ~em~ fJJ. g;:,,l'..;.i.r-g ~0 pro d:ucti-v·it:y o-.7 inclividual 

Adjusters, w:1icu·, ~og;:··L':.. Tii.th t!:l.a.~ovieri of i ndividua l cases, serv e d 

as a conc11e te mctl.J.od. fl...l "ne.:'..yzin£ t!le effsc t iveness of the gdjustment 

staff. Con eq ;l~ ~./ , c.>. f::.i r l:.r ade :r':.af-.e Cl\:Jck on the application of 

standards c- l policies c·r .:.d.j1·c. t .. t~::.t~ J . .r.d ir~7e stigs.t ion coulrl be made, 

which serv as a ba .... is fur cc:1s tr.1::.s.i.v e i::Ity rovcments in op e1ating 

efficiency. 

This p robl em of supe:r.vi :> ~1 a:;16. control, whj ch ~Va s p rimarily a 

mecha nical one, L:::.d g~1itio:;1 r~ J!~ ld l ;e tter 125 which made use of 

the indiviclD..t.1.l a tte!11pts of lop:-i E:nt , j n st menti oned, and passed · 

them on to all tl1e ~: ·i ld . off::.ces i .:1 tne form of .. SlJ.cgestions . Field. 

Let ter 125 provi 0ed. mo::e Cl_efini tel .r for t he ass igr.~..ment of work to the 

Fi eld_ Adjusters by the .Gato r Cor1pliance Officers. It e.lso created 

cert 2.i ri r equireme nts f or '.jhe :heces::;e.ry r eco!'cls on e a ch case nnd macle 

suge.;estions as to t l e p rope r t echniaue of nves tig~. tion. 

The e ffe ct of Fie ld Lette r 125 in t ;.l is Tespect ·was to crystalli ze 

the standards of Vi:o:·k of the Field. .b.d,juste rs anci. thus to establish a 

ge nera l measurin:; rod. for judg ing whe ther or not a case ha d. been 

pro:9e rJ.;r hr-.ndled.. 

Forms also were provided bf t h is Fi e ld Letter cov e ring the inforsation to be obtained. f rom both compl a inantG and r e s:9ondents, 

records of inte rvie 1'7 s held_ on particular ce.ses, abstracts from payrolls 

and t ime records, and _e. do.i l y r e co rd. of t he p roductivi ty of each Adjuste r . It 't7c..s further contem-918.t ed tha t the case files should include 

conplete reports on the history of the c asa and detailed descriptions 

of its invest igation and aG.justmen t . (**) 

ffi1ile these instr~J ctions 1ci forns inclu ded i'n Fieid Lett e r 125 

do not a:!)pea.r to va ~ y g r ea tl:.r fr om t!1a s i Dt ilar provisions of Bulle tin 

No. 7 .!U."'l.d fo !'os issued in connection the r ewith, t he real distinction 

lie s i n the .. . c <liffer-ent applicat ions . By J une , 1934 , whe n the latter 

instruction;_ were iss u ed, the princip le hE.cl bee:>1 dev e loped that Labor 

Comp l iance r Zf ice rs were in comp l et e:: cliare:,o of the Fi e ld Adjusters, 

subjec t on1:· to the nomin<J.l supervision of t he State Directors. ( ***) 

( *) 

( ** ) 

( * **) 

9861 

See ::p.1t;q 7-.1

: sup ra . 

Field. Let~eT 125, pp. 10 , 13, 19- 20 , 22, 24, 25, 27, 31. 

See ~1ap r IV, pp . zs:...40 : supra. 
-76-

1. aciical d..e~artures had been ini tie ted from t~ e orisinal complaints p le.n 

of procedure in that ·there ~as subst i tuted fo~ the notice of violation 

and ensuing correspondenc " , unannounced vis its " the Field .Adjusters 

at the res:pondent t s place of bus ir ess. ( *) _._ore over, the policy- and 

stanc:la:rds of adjustme nt ha-3. be en d..evelpped to incl•J.de stress on restitution ru1d.. a thorou ~mess in correctins all violations discovered by 

the investig ation of the ~espondent's busi ess . (**) It ~as natural 

t Lle.t due to .L. hese ch es ir.~. p rocedural technique, methods of organi zation, ~1~ yhilosophies of a~just~ent, the prescrip tion of ne ~ instructions on the 0.irection of Fielcl Adjusters' e.ctivi·Gies s!:wul<i he e £.. 

novel si ~i icance. 

A :'urt1 er method. of perfecting effici en c~r cf organization of adjustment stcdfs WC?.S proposed. by Fiel"' Le tte r 125 in the holding of 

regt1lar staff oeetings. It was SU£5ested t lat these meetings be conducted b:- the Labor Compliance ti'fi~ s about once a week, outside 

regular "ITorl: i ng hm.rrs. J..hey \1ere to te i n the nature of round-table 

discussions o: -current p ractical coin.pli?.nce problems. Through this 

means e_zoe rience could be i nterchc.n-sed, e.nd. the Labor Compliance Officer 

oulG.. be given an added opportuni ty to instruct ~1is staff. ( ***) Thile 

t e v a lue of this p lan, as a u etJod of supervision and for the purposes 

o; training ana -instruction, was ap arent, but feu of the office s were 

able to put it actually into effect. The constant demands on the time 

of the entire adjustment staffs in t he various State Officers was so 

great, that t'J.e development of the idea was retarded and it was preve;._ted. from cooing into Universall y regular use . Suffice it to s ay, 

thc:.t its inchote 11orth in improv ing the complic.nce mchinery was 

generally recognized by the field offices, and, whe~ovor possible, it 

was adopted at l east in oodified. form. 

It uas also suggested t hat particular codes be assigned to individual Fie ld Adjusters. This was to give t he Adjusters an opportunity 

to sp ecialize. It \las ::..·ealized t h-e-:t 'f.'here r arranted by local fact rs, 

it rras desirable for the Field. Adjuster a~dling a case to be f~1iliar 

Ti i t '1 conditions in t h e i.:1dus tr::, 'llilder the code and to have established 

lines of infornation from l~bor union o:ficials, trade associations, 

e.L.c . ( **':'*) This spe cialization ide a l.'as t ried in a number of the 

of fice s follm: ing t be issuance o: Fiel~ e~t er 125. Tn some i 11as so n 

abando~eQ a s impracticable for local use, h ile in ot her State Offices 

i t _eceived fairly intensive ap lica.L.i ~ t e reafter. 

In t e period that succeecied une , 1934 , t .. e vari us State ffices 

c o t inue · ir:.mrove on t he s -·£e s t i ons m ocii e d. in Field Le.L.ter 125 • ..L ~ 

Wh ile i s o: e of t' e of~ic s e. irl a deqt:at e ne t _od.s of control and 

s~ r ision ove r Field A~just rs e finally uevise , t e goal of a 

standard s _,-stem for raining t :_e _ ersoru_el, a..'l' so directing and s ""er-

' ising t h e activit ies of t 18 adj u.s :nent staffs c-.s o at/ · ain the greatest 

e f:icienct' and results, 11as never r e ached. 

( *) Se 

(** ., ~ - . ~ l I • 

(*** a r u . 28 

(**** ...,ie ld Le t e r 125 , u. 29· ' Su ulen n ~y . enorandum 0 .1' • 2 . 

9861 
- 7'7-

It is , h oweve r , worthwhile to me ntion the gene r a l l ines a l ong which 

the devc J.oym':3 nt. of t hese mPt hods fo:r iMproving t he e f fective ness f the 

ac~j nent s t a ffs t ook pla ce . Because det i l s varie d r ratlv with 

inc"L ividu a l offices , depondinP on the s i ze of t ho staff, the vol ume of 

wor:c , t 1e ·?ers onnl qual: 4.e s of membe r s of the executive nnd adj ustme nt 

staf:...s , 8: 1.. ot l e l' ts ~lo · c.:.c~ Ol's , tl i s dL:~c·...~."'~ion ne ce ssaril y mu:;t be bas ed 

on r;t..: ne:cc.l ex_l) e rie:n-.-e wj t:1 the e fforts of the f i e ld office s in this 

direction . 

I n or{, r to a ttemp t t o i n sure t he p rop e .::· a"'"•r lication of the newl y 

crea ted str cl.c..r d.s of afl.j c.s t me at , it ba cc-·;,e t 11e f! ".8ral r u l e t hat l abor 

a nd tra cle p ac t i ce co:rr.:)J. =~. i.nt., c ou l d b13 c1 .:.,f3 d r~:y em the ap""9 roval of 

the Labor c: ~" d Tracte rracti ce Comi'l i n.nce O.ffice rs, r e s"9e ctive ly. 

Be cau..,e of ~:tc 'l 2.r:~ e i n internal Oi'gani zat ion of the fi e l d ..)ffi ces 

at thi s tine ( *) the L -.

1 ·C'r Coulplianc:e Of f ice rs began e fforts to tra in 

Fie li ACI.juste r s i n t. he p rO})e r t e chn j que s of invest i gation and adj ustment . 

Bo th ne\;r and. old e.d juste rs we r e equil d to l earn thor ough l y the p r incip l e s of JR.nd. ~ cp.s es a s s e t fo .rt h in F :.e ld tt r 125 . Howeve r , 

the r e nas little ci:9llc.G f or a l;arei'"L....:L, i n ter.s i ve t :-ai :.1ing pe r iod . Most 

office s had large numbe rs of comp l aints p ending , many of them s everal 

weeks old ~mt h no ac tion e ver ~~ving been {e n on t hem othe r than a 

me r e a ckn.owl edg:r.ent s ent t o t he ~~ G. inan . Cons e quently many newly 

appoin t e d Fie l d :.ijust r s during ~1 j s p e riod were a ssigne d to the 

handling of comple.i. "!t s af te r only a ve r y bri e f drilling · in the fundamentals 

of l'f..tl.A a.ricl 2£to r readiilg 1;h r ough ] ·o:.. l e tin N'o. 7, F:;.e l d. Lett e r 125 and 

r;ovc ral of t h e cod.e s. Tbe great, ::n g,jority of this new p e rsonne l, like 

most met1ber s of t:r ... <::J a l :reac.:l_;y oxi,.., t ing c ompl :.ance staffs, we r e totally 

untra i ne d in the t ype .0-:f n ork t he y . we r e t o p e rform. 

This me thoQ., dicta t e d by necess ity, of i mme dia t e ly inj e cting the 

new Fie l d c~j us t e r s i n to · the vmr k Ul'Oba'bly Wc.s i n ke ep ing with the 

t he ory t. t a g ood c omu lion ce t e ch-;ique cou l d be st be deve loped from 

ac tual expe rie nce . ~e r~ t his pro.cedure was un d oubtedly a costly and 

ine fficie nt u s e of the limi t t.; d_ f a.cili tie s p rovide d for the inve stigation 

ancL a 0.jus tment of an ove r whe l ming vol1J!lle' of coinJ)laints. 

As the size of the adjustme n t s t aff s g r ew, t he Labor Comp liance 

ffi e:;.~ s fo .nd. t hems e l ves wi th n o a lte rna t ive but quickl y to improvise 

s ome n G;:/ of cor r c; cting t he e v.ils of t he l a ck of ini tia l tra ining of the 

F i e ld ACi.j u s·ve r s. 

Seve i'e.l Ple a ns had. been i ndi cated by F i eld Le tte r 125. The us e of 

da ily and \Jeekl y p roduc tion r e c ord.s s e ryed a s an ind.ica tion of whe the r 

or not the Fi e ld Adjust e r s we r e d i stributing t he ir time in such a way 

as to obtain the maxi mum results in the adj u stmen t of ca s e s. As a 

suppl eoen t t o the s e e.ctivi t y '.r ep or t s , the Lab or Complia nce Office rs r evierre G. tho ca s e fil e s and r ep orts on comp l a i n ts handle d by the indivi l adjus t e rs. 

Sin ce it is r emembe r ed that the Labo r Compliance Office rs we r e 

r equire d personally to hand.l e a f a ir :prop ortion of the more imp ortant 

eases ii-1 a dd ition to the full time task s of _p lanning l abor compliance 

( *) Di s cuss ed_ s u;_o r a , Chapte r IV , pp. 3St- .. :,:-:r. . 

9861 
-78-

activities and ~raini~g and supe rv1s1ng their staffs of adjusters, it 

is apparent that such a11 arrangement was not adequate to take care of 

the si tua.tion. 

In some of the large r office s, r ecognition was given to the fact 

that it was humanly impossible for the Labor Compliance Officers to 

perform fully all these duties. In orde r to alleviate the situation, 

it became necessary to appoint Assistant Labor Compliance Officers 

and Chief Field Adjust ers to whom were del egated many of the details of 

the training of the adjustment staff and the assignment and review of 

cases. ~" so organizing his functions, the Labor Compliance Officer 

was enabled to devote more of his time to instructing individual adjusters on the proper invest'igation an d adjustment of cases. 

Through the knowledge gained from expe rience in handling complaints and aided by the slow improvement of the functional organization of ve"rious field office s, the Labor Compliance Officers were 

able to raise gradually the standards of work for Field Adjusters. 

Thus, in varying degrees during the fall and. winter cf 1934, the individual field offices evolved fairly effective systems of operation. 

In those larger offices having a more complete staff, provision was 

usually me.de for the initiel training of new Field .Adjusters by placing 

them under the tutelage of experienced members of the .staff; The reviev:r of the case work of both old and new Adjusters was carried on by 

the Labor Compliance Officer or his Assistant by inspecting completed 

files and also by obs erving indivional Adjusters during various stages 

of the handling of the case. 

A few of the office s compiled the ir own manuals and compliance 

handbooks· which were used primarily as substitutes for initial training 

courses. The majority of the Stat e Offices, howeJ:sr, continued to induct nowFiold 'Adjusters into the v.:rork with no r eal attempt at prepara-

·tory training. Partially to offse t the failure to co~ply with the 

·necessity of primary training , ther e. grew to bo a tendency to raise tho 

qualifications for Fie ld Adjusters by requiring a knowledge of accounting and a familiarity with general busine ss practices, as well as exp erience in meeting the public. 

A few of tho office s paid particular attention to the use of a 

r e cord. of tho :;..unber of cases ha~-: dl d a11d back wages collected by individual members of tho staff during stated periods, usually coinciding 

with the bi-weekly reports of the fi e l d office s to Washington . Averaged 

over a number of weeks, this type of i ndividual· adjustment r ecord, when 

we i ghted b;)r careful conside ration of local factors and the r evi ew of individual casos . s erved as a fairly accura t e i ndica tion of staff efficiency. 

Likewise, in some of the Stat e Office s, the re was adopted the policy of 

r eturning for r oha:.1dling those casas ~i ch the r eviewing officer deemed to 

be Ul1Satisfactorily adjusted. This policy had a double aspe ct. The 

pointing out of miste.kes in indiviclual case s a s thoy arose taught the 

Field Adjuste rs the proper compliance technique in such a forceful mawio r 

that the same errors w8r o not like ly t o reoccur. .Also, in most office s 

a natural spirit of rivalry existed among the Adjuste rs. This was a 

logical cons e quence of the fi eld offic8 r8porting system, under which each 

stato office f olt itself to be on. constant judgment on t he number of cases 

9861 
- 7 -

har.c' l e d C1n0. ti1o 1:1mount of b[' ck r1ar; s colle cte d . I n a f ev1 off ice s, t o 

acc c:1 tm.te th~ peycholo ·ic[-1.1 e f'f Ct. of cl '1.Z s if ~r 1.::r a C :l e C' S f'.n unD. tis .~.r cto ... ' y ad.ju . .) tm .... J .. t , n. uh .. orandUJ ste tiJ g t hJ Grrors v1 h ich h n.d 

bu .. :: con;~1 i tte d in th.J p::. oc0ss of ha :cllin \7C.s i n l) rtc d nnd made a 

pe l'rJane:1 t :pa rt of t.ho c ~ e fil e , vrhJ:t'C it mi.;>h t be s co:1 by a ny 

WaohL1g ton off icia : L .t 0r i n s"? cting tho office . 

Tho us c of a plan for cre ating a de sire among individual mvmb-....L S 

of t.1.1e adjustment stC:l-ff to establish r e corcls in the quantity of \70rl-: 

hal cil cd uas made n c ossury b~r tho ov 'r ir ... crc asinr, numbc rof old comp l a ints on he!ld in most of th~ offic s . ~~ , tho J .. :.~ t f etll of 1934, whe l"i 

th1s 11 racticc became i:1 vogue in .. omo of t~1o of .L lee s, it h L1.d become 

gcne:i.'8.ll y :;.,ccognizod h::1. t in O:i. der to arri vc at a sou...'1d, p e rmanent basis 

for operation, tho State Offices viOuld ne e d. to bo fre e to dire ct the i r 

own efforts witho t tho hampering restrictions of tho complaints plcm 

of procedure . (*) 

Therefore , th~.; e w1:1.s ar:. addcC'. mo tive for la;;•ing stress on tho 

qur'ntity of ·mr ccorJ -? :_ishod, as · o}.J. c.s on the qualit~ of adjustments, 

si.1cc in or er to ... ut t he ne v;r p l a. 0f :proc ~..;d. ur o ir ..to' ope r a tion , the 

one rous burden of unadjust co. c·Ci:lp 1e." n ts had fi:;. ·st to b e r Gmovod. 

Tho i :J.divi c-:.ual aC:. ustm~... nt r carr_ plan vras applied in vc:.rying forms 

by d iffere:L1t office s. .A.lt"~-10J )l t h.J " e.luo of its us e as a me ans ofkeep L.g check on ir ... di viJ:o.al e:'f ic:i. c~c , i ::<iica ting need.ed p rsonel 

supervision anr~. i .1::r ·.)p,s ing th'3 vo h--.: 10 of :production, whe n· p ro:pe rly 

correla,ted ·rit~ s t<·nC..C'rC_s of q1.1a l ity, wos. !"l,p :9a:'G::lt , ne ve rthe l e ss, as 

follo\!ed L_ sol!lo cfficos , the :p l e.r:. nnd ~· quo stio·1aole effect on the 

ac --: l!l~o lis lli·,: :;~:. t of the g o.s.l of u..r:ivGrsc:.l, l .2.s ting com:_oliance " In this 

con..11.o ctioi1 thoro sh01.1 d t .... ev1t io ec~ by. wa;{ of illustration tho plan 

pursued ~r t ho Sa;1. FrC~.. co ano_ Los .A.:.'1 £;0 l 'Js , Ca lifornia State Office s. 

I n th.Js e tno off ices <>.l .aost t ho cntL·e c;mphasis was l a id on the amou..Ylt of 

ba ck y;age s colle cte d by each Fi e l d. Ad juste r. In the San Fran.cisco office 

in particular the r e w:.s maintai:nG d. a -bulle tin board on vrhich v7as posted 

tho numbe::..~ of c.s.ses he.ndled anC. tl e aiDOw""l t of r estitution .s e cured by each 

particular A6.justor. Obv iously, the purpose of this was to promote the 

natura l co~pe titiv e f e eling of. meQbers of the staff and to incite them to 

increase the ir colle ctio n of oe.ck wages so as to e stablish a record fo~c the 

office in this respect. 

However , this practice was not followe d to any c()nsidarable extent 

in othe:r Stc-.t e Off ice s becaus e it was gonernlly be lieved_ that the amou...!t 

of be..ck ;rage s colle cted alone was an ina ccurate gauge for .indivicl.ual 

efficiency. Furt he rmor , it WE\S f e l t - tha t by overe~phasi zing the r e stitution feature of adjustment, the re was a danger· of t e nding to e liminate 

two e ssentia l aspe cts of complia nce 'v7ork, namely, the creation of industrial goou· nill and the e ducation of emp loye r s to their obligations 

under the codes • 

.After the c:ree.tion of the Re c io'lal Off ice system, the State Office s 

were e;.1abled to speed up tho disp osi"tion of unadjuste d case s. The new 

procedure cre ate d for t he ha.Yldling of cas e s be<J,riag r e commendations for 

the r emoval of NRA. i nsi gnia or for l egal action provided_ tha t they 

shoulct be b,an itt e~ by the . State Office s to the ir r,e-s:pe ctive Regional 

( *) Su.:ore ..1.. . • n·o 

~ ..L • 

9861 
-80-

Offices. (*) The close proximity of t he rtegional Offices to the field, 

and the enlarged faciliti e s f or taking further 8.C tion on unadjusted complaints, t ended to remove the ·9revious h e sitancy of some of the Sta te 

Offices in referring ca~es to Washing ton. (**) As a result, there was 

a relieving outlet for t hose l a,r ge numbers of ca ses, in rrhich a cijustment 

efforts were unavailing , but ivh ich t h e fisld offices continued to carry 

in their alrea~y too big inventories, becduse of a fe eling of the practical uselessness of sendinG them to \'J'c;:.shington for further action. 

Thus also, being in .. fairly close · touch _with the Regional Directors 

and the Regional Field Representatives; it was made easier to suspend 

further effort on particular complaints or even entire trades or industries where ~ thorough kno ledge of compliance conditions and past experience in adjustment work clearly indicated the probable _futility of 

further action. ·Included in this class were the service trades and other 

strictly intra-state industries which had always been prolific sources of 

complaints from employees, and which, under the inflexible complaints plan 

of procedure had served to cause much wasted effort and misdirected use 

of compliance facilities. 

Through this latter modification of the official procedure, there 

naturally ca~e about a change in the stanciards of investigations and adjustment. This change manifested itself in further developments of the 

plans in the various offices for the supervision and training of the Field 

Adjusters. Thus, there tended to be a ~ivision in the assignment of cases 

into classes which were r ated according to their relative importance to 

the entire compliance program. 

The cases which were important because of size, questions of policy 

involved, or effect on the industry, were usually assigned to the most experienced and better Field Adjusters with the Labor Compliance Officer 

taking part in their actual handling. Complaints under unimportant and 

intra-state codes, such as the service trades and the Retail Food ~d 

Grocery Codes, were often handled by newer members of the staff or by 

correspondence. The balance of the \Vork, which may be called "routine" 

cases, were assigned to the staff at l e.rge according to the plan in the 

particular office. 

Some field offices adopted definite classifications for types of cases 

to effect an additional control over the time of the adjusters, the classification of any individual case, however, being subject to the recommendations of members of tne staff. To further effectuate this purpose of 

organizing the work so as to derive the maximum results in efficiency, a 

few of the offices specified the amount of time to be spent on the different 

types of cases. Thus, in the Missouri Sta te Office, for example, important cases were given an "A" rating; ca ses in the s ervice trades and 

strictly intra-state industries, a s well a s in manufacturing a~d other important industries where less than five employees were involved, were 

grouped under "C". All other cases were placed in a 1

1J3 " class. 

(*) Field Letter 190 

(**) This hesitancy was due to the fact that there was much delay in the 

disposition of cases sent to Washington and i~ some cases further 

action took the form of referring the file back to the State Office, 

perhaps months later, for new attempts at investigation and adjustment. In such cases, the result of transmitting unadjusted complaints to Washington often had a wors e effect on compliance than if 

the complaint were· merely dropped , since it served to advertise the 

fact that there was no practicable system for punishing violators. 

9861 

i 
- J.-

"' -~ es (' 1 ..,r.ser ~s "A11 ::. C,1'l r cl ~ t'·10 r ouf"h invf'sti io n [\nd ['.final 

re_.ort tl er '1 h ...... c·. tJ oc fil...:J. \ i th t he Let or Cor·1_t; l i[.nCf' Off i r rri thi~1 t \70 

\"Cc;.;ks fr of' t . e 0.1.t e of .. ·.ss · .... nnf'nt . I n "B" ~. ses th"' Fit l <l Ac1juster s ··.r -'re 

in~t · tC tGc~ t) ins )E'Ct l) Ll.~'ro ll 1.nc' O~ tt'..i. n stt't CE!Cn t s fror~ em.._) loyE ;J •.r ~.: c 

ci ec-r .. eQ. at'i.v is·'Jl c , u t t. ~_, .i' :.: a sli. htl l e ss intensive i ·wc.,t.i ;ntl on t han 

in 11 c c.. <> e s . The investi : "t ion "..nO. C.Lfo r t ·· e~.t ndjustmL:nt hn0. to b . co-1pl e t e d 

r•it.h in one '.reel;:. 'C" ·· ~es '''c> r e to oe hcn(lled on n. one C[)J.l bo.sis. The inv ec- ti:'::-, t i on r:.s r est :.. ic ted to ")l'u"'eat er, '.J s :1.nd the COi . l n in<.nt , sinc e "-" .J. J; v 

usu" l \ ;r h~ est .:- bl islments i nvolve d r·erc s q.:-.11 , of ~ce nt ve uni !l or k' , nnd 

h ·

1 d ·1o ·~6 c-.. t e s e ts of 1·ecord s . But ~· 'o c:!..'Y "' r e re o.l l o re(i_ fo r the c onpl etion of the lattGr __p e of cnsc s . 

This a :1d. oth r a~ 1s of n simile.r ,e;.1era.l ru: e rrc:..·e ac:o_ t ed ·oy nu.ny 

of the offi ces. S11c:1 n. ~1e . e a t h one d.e scribed c-."u ove re11u i:red t he entire st --:.ff, :.:1cluu.i nr; not :: ~ t l1e ]7i el c. Ad.ju·ste::.·s 1

)Ut t he L'loor Co ~J li rnce 

Officer as Pell, to lforl;: :~. t COj_'ltinuous top Sl::J e e d, and '.u: s , tl1erefor e , im-

::9 l' i"'.c ticc..b l e :cor J.::Jcrmo.ne":"lt use . Pl['.ns f or r.1e.rsh::.ll ing afl.jus t : 18n t f C".C il it i e s 

f.l.nd. Sj_J ee c".in_:; the ( i ") O si ti0:1 or cc..s e s : o 1eve r , ne::. e ,.v cLe n.ece ssc-.r--.r to forestall <1 gro.-inL t cnc.-J nc - o:1 t :1e _,_)nrt of r e s:;;:c ncien t s , hei gh t e ·n.ed by c..dve rse 

court cec isio :.1s o.nc. the c,iui:i s::: e1.l of -:;l1e :.:>c lch er CQse ( *') L1 the Sup r eme 

Cou rt ~ t:1e Govermaent , to pr c :cc-.stj_n "'..t e -- ncl to del ay the adjustment of 

c .::.se s . Such plc..ns re r e nl "'0 ,.1< .cte ncc e ssP..r j' t o enabl e t he St:--.t e Offices to 

co ne en trt:t te their ef:.':orts 'rhe :. e Jone cons true ti ve effect on co:r1pl i a nce was 

p ossible o:f [' cco ~J li shm .:m o 

Littl e hQs -:Jee:1 S'"' ic conc cr nin;2; t he nech:-'.nicc l arrf\.;_v-;ene n.ts i :t! t he 

d iffe :te·1 t fielcl offices for the SUl::J ervisior: of Fi e l ·l Adjusters. Although 

these pl t'ns vo.riecl ,-,ic.eJ.y , f olloni n r; the L~t rna.l Ol'[:ll:Cl izo.tion schemes of 

t he ·9o.rticuJ. c r st te Of::.'i c c s , ( * *) t lJ.e:::'e sl: o ·..:lcl 0e incU c a ted the general 

1 ine s follo .'Gd. 

In ht"'.s ,; een previm-.sl •• ) Oint e d out t lrt ii1 some Ste.tes new Field Adjuste rs ne:.-e ::tsr. ;~ned. t o ;·wr e e)-:: eri enced !·.:en fo::.· trc:dnin; . Some of the 

offices, notC'.ol;y t he hiL:·~ del "'.. , penn.sy:J.vp_:1ia Sta te Offi ce , went fur ther 

a !lc'. nLde :pe::-manen t a ssic;J:::1ents of Seni or Ad.justers to superwi.se the daily 

r:-or:;: of the o ~1e r I'i elcl Ad juste rs. Of si: 1il:''.r "J.l....,.tur e nc.s the pl a n :our sued 

r ~ fe,-. of the offices r:h e r e-Jy the functions of inve st i t;--..tion u.nd e.djus tment ne:::e d.ivic.ecL, the lc.tte r Jeinf, : erfon1ed bz.r cor:1)l i a nc e or Office Adjusters, TI~'l o "Here usual}_y ol c1eln T!1en on the st·-.ff. The ) 1 :1.:'. of a ssir<ning less 

experi enced Fi e lci Adjuster s t o s en i or Adjuste rs or other higher r anking 

:1enbers of the staff, either for p e:cr.1anent supervision or r:el' e l y fo r trail1-

il1&; , TI.:'.s p robabl y fol lo,; ed by nost of the offi ces. 

(*) U. S. v . r_- . E. Bel d:e r , et ,....._1 , United St:::.tes Sul)r ene Cou.rt , Oc tober 

terr:n. 1934, l'To . 628 . The -Dv ;e 1 t t s <' _J_)eal L1 this c e1 se , rrhich wa s 

desi:;ned. to test the const tu ion lit · "Jf t h e Lumber c.nd Timbe r Pro ducts Co de , .7: .s vo :mt :::.:..~i ~r ·.:i thcl.r .:--.\m or.. April 5 , 1 S35 , and the D.) :_) ee.l 

0.i sni ssed T the cou rt. Wide publici t :r had attended. the case , Tihi ch nas 

he r e.l<.;_ed a s suppos edly the first step L1 c:. ne ; p r c5 gre.r:J of viGorous enforce;!ent of t~1e coG.es. 

( **). Su~J ra , Cho..) t e r III "Th e Orisin r·.nd Devel :p r:1ey- t of F1 el G. Off ices. 11 

9861 
- 82-

r:ehe r'J.jor ~J ro er: Y.t['.S to evolve a;.l effective :;~rs en for the orcle r ly 

ass nrnent of u ork n~ t he Circction of co 1p li ~nce e f fo rts so s to bt~in 

the mn.xii:!'lli:1 results L"i efficiency , t hus a voicUng ciu) lication of effort. 

At t he sr'.me til!le it w ·.s necess 2~ ' t o c.:..~ iv e the adjusters to inc:..·ease the 

quc.·.n ti ty of nork ~.ncl1e d. , r'.ncl ye t to l-:eep t:ru.ch Ce.::·ef'lli supervision over the 

E\.} ) licc-.tion of the p rinc ipl es r.n o. stPnd2.rds of aci.ju st::nent t hat each c r-.s e 

~. C:. l eo. rro uc'. oe a const:'U..c ti ve s te~o to '.7C:-:i~o. the eG.ucc. ti on of ind:<J.s tr~ c:md 

the u ltine..te cond.itio:t.l of lli:ive rso.l, pe:r:18:11ent co de couplie.r..ce. 

Thi s ste..nclar c. of cco ~1p lishne:_t: t seer1ec~ 2-l r.ost i npossil)le of 2.tt2.inment . 

The fulfilliaent of the .~.J'llr os e \7C'.s hin.:le r ed. by t he bsenc e oi 2 . training 

pl~o o. , t he l a c k of st c..nd.::.rd ·n.ua lifi cations f or ~· lcl ;_o.justers, a.,1d the 

CC1.re less, :-:1o n-scie:1tific netho\~. of selectLl&~ ) ersolli1el. Ho\rever, gradual 

but continuous p ro c e ss to'\'! d ~1e gonl Fc:.s mc.cce throlibh the efforts of ind ivicbJ..al office s i n develo ;in :': systems of su ervisi ~ a nd. t rai n ing , the further :;, efine en ~ o:: stario.arcls nd ::~ olicie s i n l]['_.shing ton and. the fiel0., and 

the slo1.7 ir:1p rove:ment of the t e chni ri_ ue ~f hnndlinn; c c.ses of v iolation. 

Section 5 - Technioue of investi,c;F'.tio!!• As in t Le cn se of method.s of supervisio·:l ove r Field Adjusters, little ~Jrog ess •:;m_ s made in the o.evelo_)ment of 

the :- n~o:~ er techxiirrue of investi gr1.tio::!.. ClxLrin c t h e f irst six non.ths of the Compl i o.nce Division. Under the orig in:<.l i::~s t:r1:'.C tions to Distr ict CoBpli;,:,.!;.ce . 

Directors anc. for several · 1o nth s after the cre c.. tio ~ of the St:·.te Office 

~~ s te1 ·.1, t h e inve s tiga tioD of c a ses consisted large r in t aking the CO :rl~') C'.

0..11 ts t st8.te ,·:e:J,t, :;,~i tin r; the rGSJ_JOnclent for his side of the stOI"J , rmo. ) erh.:tp s 

in tervieTiin.c one or i)oth the :.J~-i rt-i e s i n t he N.aA office. 

:Jul1etin IJo. 7 ·,)rovid.e cl for t he lin.i t ee: use of J'i,eld Adj:1.sters nd 

C0 11ta ineC:. some instructions :on the techr..i qy.e of inv.esti.::;t'.tion. (*) These 

-v:rere lL1ite6. to a fe,a ge1:.erC1.1 r u les of conc:uct c..:'lG. ::1. brief sto..ter.ent of the 

procedure to oe follo';red i n fi e ld. intervier:s. (**) For ex.-:1.n:ple , Field AC:.-

jus ters ,-,ere ins true ted. not to in tervie•: e;:1p loy ees C:.uring Parking hours or 

-om the ousin.ess prer,_ :tse s 17iH1o"t.t.t the res:ponC:.entts ~J er ission. In n"lcing 

a field call t l1e Adjustsis \7e~e t~l c first to .see t he ondent ond isc u s s the compLtint with h i ra . · I n the event ~'le l 0.t ter 8.dmi t ted the 1:'2-cts c.s 

a ll e _::; ect., a s ta te:.1ent }) ro ~p o sing the t e r·os o:£' 0 .:1 c;.c-:.jus t oent '.7C.s to be obtained.. 

Like\7ise, if the ~o ondt:nt 'took issue Oi'll::,r D.s to t l1e .2.l) ~Jlic tion of the 

Co C:.e to the f a cts, the Field Acljus t e:t's "'ere to ·ce t a cleo.r er:>lEmation of h is 

position. 

In t h e J'Ol' o likel"'.r t ype of C'"'..se, ,...,here t be f~ cts lle ed rrere deni ed, 

the instructions m;re e~J :.o ll y <:; rt:rlt ~r . The J? i el d AG.just e rs ·--ere tole. to request ~J erro.i ss i 0;1 to e: ~a,..1ine t he <-'-: ;J~JrOlJ ri. te recorc".s, ~1.c ):1 r..s t _i me q~d s, 

pay rolls, c a nceled check s, ~nvoic es .~1c:. st .les sl i y s. In the event such . 

lJ el'nission 'rere refused, :Julletin l~o. 7 st.:.ted. th['.t Fielci Adj,_lsters rrere 

not to insist upon r-.cce'ss t o t he re coHls , 1)u t r·1e rel;y to e~J ain to the re-

~p on dej'l t th.-.'.t l1 i s l~efusal n ou l d. b e "'.l~en c:ts an i nccica tion of a desire i.J.Ot to 

acljust the C0 11pl a int. 

(*) See Sec tion 4. 11 ':Llh e Dir e ction :'.nc-;, su}) ervision .of Fi e l c. Adjusters", 

SU:9:..• 8. . 

(**) ]ul le tin lio. 7, :9l)• 1 9- 20 . 

9861 

Cl 

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ti 

li 

Sl 

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t: 

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Th s\... ins :cuctio :~s er~ .,il e :1t s o obt --.inin-· evi c'e !c of vio " tion 

1) - inv t.. ti -·-- ti"'l · othc 1· s n' c e s nf i n1onJ"'tin n . A.' :1"s 'Lec n "'lointeci out 

be:o r e , ·ince Jul l tin :To. '1 ;•.n the off i c i· 1 -1rul, 1 f :::- fie • of f i c e 

conpl ir ce ~·. ctiv ti , t hc.t e \7,"" a t e. c.e ncv t o te ~)le t i t l.i.t e ·" l :r. Co:l"'C ~1.,e , tl:e r!·~ io" c· ertc cl i:r the minos of t he J. i l cl r5t1 f f 

t e 1( acl t o Je th..., t in lw s o.so s · he1· "'.cce s t. t o tl e r~ cort~ ... 11- s r eJ·u se0. <!.O 1'urther i nve 5ti . ·nt i o·,1 rr "'.s nec e ,ul . 

::or t un". t.ely , ho· . ...,ev r, t l:e 'h.':'.d. eff e ct o these instruc t io"ls OJ c o -

· ,li'·nc e tecllni Ci ue \Tn.s ot .,o se r i ou s a s ,,o,_:. 1. c1 se en. SL1c e t nc re rrere - ~ 

, '..l.t fer· Fielc Ar'ju .. te rs " . . _J ointed unti l t l1 e l Tcte:' )art of the s ... orinl:. o! 

1 9 3£: , t~leJ. e ,-:--s li ttl e occ sio _ to )·"\:- <'.ttention to invcc ti c " t ion[l.l 

technique clurin,·; t he pe r i od. rnJ ed. c- ' f olJ. o' . .r i ng the i ssun. ~ce of Bull e tin o. 7 . CO l1SC0 ent l .. r ~ t he cursory n eth od.s of inve s t.i. :.;· .tion nhich 

s e er:e' to be L16.io.:;:-'.ted "u · t il e ins t l-l·.c t i ons P.i cL ~1 ot b e cone cleep ~r ing r a ineC. L '!. i'iel d. off ice :"r ocodu:·e . 

He r e i t. is nell to ~J oi t out t'-l"' t , F•.l tho,lt:l'· t he fo :;: egoin:o; rna:r ·be 

im~.) lie C:. as r cri ticisn o_· :S L.liletLl o, 7 , .:--. t t he 1e those instru.ctions 

were issue( t '1er e e _:i.sted. Jr C t ic o.ll2r no "' erie ce in the use of fi e ld 

investig.J.ti ons f ran ':'Thi 8:J t o C.:.' C'.';; . I -:; ,.! S Oi~l r tel~ t h e C:.evelO:;;:J ecl 'lse 

of Field Ac:. j u s ters , ~c.. t he ch ~~·e s Ll CO' Jl i .:mce p roce C:.1..,_re , .., t [tnd.a :..· o.s 

D.nci_ Jolicies of n.d.just r;e· lt , E'.n'"- !1e thac.l.s of or .:--. ~1 tion, gr a du8.ll:r evo lved 

fran t h e C: ?.. il ~r e .:')G ri enc c of h[l.ndlin~ co ::.pl -.ints, th, .... t 0. ) r <.cticaole , e ffective co r.~) li nce t e ch11ique '.TD. S cre2.ted. 

mh e n: ove ne~!t of t l:e i1et1 .. oc'..s M d.. sco:-;, e of inve stigo. tion follm7ed 

the .gene1·c-.l pattern of d.evelopnent of the Compliance :Div ision. Ind.ividual of: ices pl a ced hi -:he:' stanG..c.:..· d.s on t he investigo.tion of ca ses a nd 

:;o..ve e.ci..ded. instr uctions ~o their c t.2.ffs 1~ the a ctu.s.l :JJ ch:~ ics of ins_Jec ting recon3.s r.mC:. in t ervi e,:in.; employe e s c...nd r esj_)onclen ts. Erpe rience 

t ae1ght cert--.in tricl;::s of the trc.de , such 0.s :reconciling pa r roll [lnd time 

record.s •:Ti tl1 J rGd.uction records to d.eJ.:. err:ine a ccurc::-c:r, .::<.;1d. the ps•rc11olo oy 

of obt<:1.ining see in::; r volunt0.r r 1.ccess to r e cor6.s. 

L.:. tl: e :9e1·ioc!. fro 1.~ Jo nunr r to J'LL1e , 1S34 c ert;,_in otter frD.gnente.ry 

ins t:cuc t io n s "el'e i s sue d. to the fi elo.. For i ns ta:1c e , the offices nere 

tol cl t o ". Sce:ct ."'. ~ tJ.:e forr. of business orga a iz['.tion 'Jefore trCt.ns:Ji tting 

u::1; .c.justec'. c,.-,.ses t o 1as:1inE; ton. ( *) In t b i s co;.-,_ nec t ion , thel~e \7"".s sent 

t o the f i el C:. Of iC S [1. C<J O.e CO ~J o. int n.na l y sis for;:: fo r [';Ui t.o.nce in :p r e-

:p::t ri x~ .... :-.ses fol' tl1e c- tio~1 o.l Co li on e Bo o.r d~ '~ *) Sh ortly ,'1£t er the 

issu2..nce oft e ?.tlo.l .-sis fon: it '7C\.S f ound. C'.esir.,.ble to ~; e the fie l d 

offices to include all cess r7 evi denc e a~d informo.t ion in the files, 

so a s to fc-.cili t o.t e c~ io n o:: unc-.djust ed ca s e s in ':'.'2-sh L1c; ton. ( ***) 

(*) Fi el{ tt r G2 

(** ) Fiel 0. Letter f£3 

(*** )~iel~ tter 86 

9861 

(F y 15 , ~34 ). 

(Feoru::.r y 2t), l J 34 ) . ~- , , 2 ? 9~!: ) j.,J.I 'l , . "" • 
-84-

It is to be noted _thn t t h i s l ·.st mentione d. e;rouy of instructions rel a te d. only to the v er y sr;:·:.ll p erce:1tc:._:;e of cases TihiCh \!ere for-narded to 

the Nati011al ConJ;Jli n:r:.Ct3 :J :~:;:·o ct :;: · fo~ f -u.rt heT a cti on. Ho'.!ever , it shoi:t.ld b e 

understood t hC',t t he i C:.e a s eD·oo o5ed in these_ instructions f or the reparation 

of UDEl,djusted c a,se file8 78 e ~) lied. "'uy soT.Je of t he off ices to e.ll co r:!-

plaints and t hus assisted in sh8:·::>inc:; t heir tech11iq-aes. 

Aga i;n there 11as a n ell-defined chan,_;e •.7i th t he issuance of Field Letter 

125.. The s t::mdard.s of c:;,djus tr:en t ·1rh ich \"!ere p ronu.l go..ted furnished. d.efini te 

lines for the d evelopment of th@ thoroughnes 3 of i nve stigations. (* ) The 

departures from the strict COQpl a ints bAsis of p roceeding s, mol'eover, 

brought about the tl1orough inspe ction. of the ~tire payroll and the :-1ore 

a dEl qua te eJ:.::!n ina tion of the emp loye r ~ .. :1c".. rTor!:rer s t h rough p ersonc:l intervi ens. (**) 

Besides l e.yine; c_ ,~m st.c-.nC..arcls of t he t h orout:,hness and. sco ~J e of investigc::. tions, Fielo_ Letter 125 a lso cont <.t ineo. ·su.g ;e stions a s to the p r a ctica l 

necho..nic s to be er.rployed.. There 1-rere inch:'.de0. forras for interviews '17 i th employees a:nG_ er.1ployers and. for a'bst:;.·acts from pa~rrolls . (***) Th e farner 

nere designed to serve e,s guid.es for t he :r ar::\ tion of employees' sta ter:1en t s o.nd for the information to be se t:u e( · ro ~ r e s:pond.en ts •· The payroll 

form wo..s use cl for the con:pilation of t he spe cific d2,t'a neecled on hou.rs and 

wages to deternine coml:>lirmce .• . 

It 17ns a lso su ·;cestecl by Field Letter 125 that each office develop 

its O\Vi1 sets of forBs, _<:'.ccorcli:ne; to its needs, covering other aspects of 

the han<iling of cases. This they· cUd," e;(l(:_ L1 J o.nuary, 1935 they were r.1ade 

the subject of D. stu.dy 'by the Coord_iria ting Branch . of the Compli 8nce Division for the :ynrpose of standardization,. (*·***) ~1. e initi a l stage of this 

stud.y w2.s conpleted g.nd in Mny, 1935, ·there Dere trc:msu itted. to the field 

offices for cri ticisr.1 s r-_no_ comr:1ents the developed. forns, including the following : ::..~e)ort of em::1 loyer. intervi ew, recor d. of interview, request for 

inve stiga tion, e:r.1ploye e 't s complc.int, Field Adjusterr s daily re~)ort, restitution n ork sheet, fina ncial sto..te w:n t, transcrip t of payroll record, a nd 

record of er:1:ployeest time (to be · used a s a time sheet by the emplo~rer)'t'  

It is to be noted 11ith interest t hat in neither :Sulletin No.7 nor 

in ?ield. Letter 125 was tl).e :;:- e an;y· refe:;,· ence t o the interst a te ch :!.~acter of 

trc\nsnctions involving code viola tions. ~rhi s is striking because the Act 

lini te G. criminal :penal ties a nd ,:tction by t he Federa l Tro.de Co wmission to 

tr c:ms:tctions in or affecting interst -'~ e or f oreig.1 comme rce. (** ***~) 

Moreover, it uas the general COi.1 se;,1 sus of ~~ l op inion tho. t the Congre ss 

(*) See Gha:pter III, "Th e AclnL1istra t ive SettleElei.1 t of Co de Violat ions" , 

(**) 

(***) 

pp. .:1. .':- 26 

See s e ction 2, 11De.velol)nent of a :neu com:pli E1.nce J:J roced.1.rre 11 -, p·. l:: · 

Thes e forms are to ·oe founc: , ii! the order na::1ed., in Field Let ter 

125 , ::_Jp ~ 22, 24 , O,Zl Q 27. 

( ) Field Let ter i94, p. 2 . 

(** ***) Field. Le tte r 214, P? ~ 1-2 . 

(******)See ChajJter III, "Th e Acu.iinistra tive Settleoent of Code Violations ", p . 1 2 . 

9861 
hs.d 'ua• -EC, i ·. ou .1o::.'l t :r f~o ""' o t tl:e ::< t:..onal I nd1 l:-:t... ial P..ccove ./ Act on 

its p o• •er t c, e""'ul'l.t e co:-1ue rc e Det .ree;:1 the s v eal st<"t GG and rrith forei gn 

countries. _·.t c .. n: rc-.te, it i x'undc:-;ner.to.l tl '"1.t tLlC i 1 ~:st. te , 'Jc ct l::; 

.?..n e. S <Jl tl[ll inc;:: eui(;. t. of' :.eG_c:.;:t't..l j u.ri ( iction o rc r l'Cc;t;.lw to y m · .. f' r e'": 

of this chcract , ·mJ css bared on o~e ~pecific onstitutional g rant o_ 

<'Utho rj_t:r. 

Not onl·; r:e rc thGre no i rstructions curinn- this ce rl' ~')e r·ocl as to 

inc l1.-:.ciinc; "'11 e:-<lJTlin[ltion of tl:e inte sLt -~r~pec ·S in tho i nve8ti:;o.tion 

of CO""!)l.C.i1-.ts, out ~o cl.isti :ilr.tions :e ~-e 0J.·c ll bet··een th~.:: t· .. o cl.;.r;c:e::; of 

comrnc:!.·ce in tl1e regu.latiors i s sued to the field gaver nint; t l1c ac.ju. t Jllent 

of code viol" ~io:. . Uor <.:"..id [ln~- o.:' t~l8 od ~f' contC1.i:.1 dv:fini tirH:s of 

inciust···:- ·.:l i h · ·e re so C:,'-1al i 1 i eC.. as to e4-cLlcle intrast.: tc mer,Jbers. ( *) 

· i t:1 1i s tota l l [lck of emnha'1i s on t he int erst a t e characte r of 

violations in re[.;Ul.L'.r ;'djll.st ment r.ro r> , it rm.s natural t hat this phe.se of 

inve c: t:i. §;D7- ional tec:miq_ug r;as '::cek , e· en t houg-1 s')me clev elopoent 'ilc s r.w.cle 

in obt:-ti niLz p ro·per ev:.. C'9tlce of tho rcC\por.d.ent 1 s comp liance sta tus. To 

... e suro , the co ~e corr. Jle .:.· t "r . .-, 1--s i:~ en'G to tfl.e State ~·· ic s '.7 ith ~ield 

Let ~e r o8 cUd. include qu:;sti c· s tC'··.L lli. :.g on thi s snbjoct , b'.lt no sugc;estions •.rere r.mc.e ;: s to Fhe.t co -.sti t ,,_tcd p r o:pe _· e·.ridenc e thereof. 

Ho·-reve r, at t h is ~; oint e: e shoul d be menti oned. an imp ortc.mt influenc e o:: t:,e im::>roveJ: ent of Lr-i est ~:; E'.. ti onal t e chni que b oth as to the 

question of comlJli o.nc e and a s to t hG 1JroY.em of whethe r or not the 

viol a tions fo lrr.~ affected in t e r state comme rce . 

Unc3.e r Ad.mi ni stJ:<-tive Orcl.e r Z- l4 (Ap::'.'il 6 , 1934) it ,,.,as :_o rovi deci 

that the St : te Di recto:cs !:light :. ef .. r clea r cases of une.djust ed violations 

di r ect to t , . J '.~JlJ ro:tJ at e Un:i. ted. S1CP t e s ~~ t tornevs fo r l egal ac tion, "Ri thout follo~ ·-. .::; the r eE,\.llc;.r c:1armeJ.s J.eadin[; t}lro-:.lgll the National Comp liance Di:~ ctor e.nd. t.:1e ! r2 tiona~. Go ?l an ce EoD.rd. ( **) It has be en 

pointed out i n an ee.rli e r p ortion of this chapt e r that t he effect of the 

sho r tened ::) roc edure cre2.t eo. b~r thi s Admi ni r,trc.tive Orde r was to place 

the various State offices in fairly close contact ith the ocal United 

States Attor:neys. Sli gh tl :· rec di~"lg this the Li tiga tion Di vi sian Tias 

established to cooperat e 1::i th the Depa rtman t of Justice in t he h['.ndling 

of all l-:RA li tigati on. ( ***) Both the Li tigCJ tion .s·.t t o rneys, who 

travele(;_ amor:::; the Stc:.t e Offices, and the Uni t ed Sta t es Attorne:rs 

served to a cquaint the fielC: off icia ls vii t h the l egal r equirements as to 

evi d.ence, the e ssentia l p oints to ·oe cove red by i nvestigatiol'l, C'.nd the i mp ortance of p roperly ::_Jreparin.c cc..ses. ThrouGh t he rne diU!-n of p r eparing c c>.se s 

( *) :Io·.·,::;ver, ti:1 e Lotor Bus an(;_ Tra.nsi t Co de s had d.efini ti ons Tihich r.rere 

~JD Tt ll r qualified by t he ciistinction be t neen int er- and intrast ate o:9er.s.tion s, but onl:r to resolve a conflict in jurisdiction of 

t he tno codes. 

( **) Su:J:rc. , se c t ion 1, 11 Co ~J aint s, t h e ·oasis of p rocedure , 11 pp . r3- t51 

( ***) Off ice Ore e r 74 (I,:arch 26 , 1934) . 

9861 
- 86-

f o r lit '~ 2-tion , the ne ,·i'oeJ·s of t~1e 

c onducting thems e lve s in ·:. careful 

f i Gl C~ stc-.i'f l en:.!le0_ ti1e necessity of 

m!.cl -,JruC.e :·: t r.:c.nnc:i."' b evoncl re..,JrO<.'.ch b'Jr - v -

~) "l'l ::; COl'.nsel, of obt':inLv: (efini te , ~_ L.·ect eviC..ence of v iola tions c..nd 

their effec t on i nters t :- t e co : :ne:· ce, a:-~0 of :::>e inc; tho rou' ~... L~ t he ir '70 rk. 

I i.:. co ~ection 1:J" i t h tne •_Jreced.L1r:.:: ._-_i c-ussio:1 it is i nter e sting to observe the :~ olloi7ing instr uction to t he fi el C:. offices, 

"The codes r e{).li "'.te t~no.n r:.c tions 'ill or <::.i'::"ectinf interstate cor~ l' erce.' The Adr::inistr['..tion' s vie'.7 i s t hat in the 

~J esen t eGer[.;ency the v n.st bull: of L1ciu stria l c\!ld. cor-mercie.l 

trcms:1ctions a:1d. ~- ctivi ti e s fall i r:. tt.is C<J.tegory·, (...nd the 

Ac1nL1istrD. tion i1as 'Ue e!l v e r y succes =- f c l i n upho l c'.L1,:; this 

vim7 L1 court. Accoi·d.inr:l ••,_2-_n c:_ l?:-n ~; vi u~ ~0o ndents, 

~r ou should 11ot be infl.ue:r.cecl o,- any contentions on their 

~ar t tha t their tr ns ct o~ s n e r e not '1n or ffecting 

i nte rs t D. ~~OJ7lr ;erce. j-;-,--(--~,;u e~l ini n" ~ SUjJ~J lied). ( *) 

'\7i th the inf luence of p1·epo..rin.g c c;.se s for li ti c:->.tion, the cre n..tion 

".nd development of sta 1clm· cis of e.ci.ju stnent, t h e inc~ .'l. sing use of Field 

Adjus t ej:-s, c::.ncL the moc1ificn t ions in the coupl a ints pl a n of procedure, the 

va rious field offices erl-ur:tr ke.C. on a pe r·io c of g:· e.d'.lal, ste D.<i r i HproveBent 

of the ir tech:1i ques of hr::.nQing cc?.s es. I t has D.lr e<'.c~y oeen shol'm t hat b e-

\ inninc; o:bout the 1.::-.te spring of 1934 the p r act ice of inspecting the entire poy roll cm1e into use. 

!.:Ol'eover, the u s e of nass cor.ipJ.il".nce 1!1e t hods in VC',rious d.e ::;rees 

necessi t c.ted 2 broa d.enec: scope of i:nvestir;:'tion. In order to cover as 

much grounc1 as possible inspections r·sre li·1 i te~ to C'..T-l~J les of the :pa~r 

rolls, chosen usually at :candom. :By chec:;:ing t he hours c:md wage s of only 

·"'- fey:r em lo~ree s or for s ar:1pl e weeks , a [;ooci indico.t i on of the exte;J.t of 

co r.!J. 'J li :mce could. be obtr.i ne d. \iTttere viol0.t ions l.'eTE.; ch scove~ ed in mo1·e 

th a~1 occ2.siono..l num-Ders, n. furthe r ·· .uC:~i t ':To.s :·1n:-'.e ei t l.1e r b~r the Field Ao.-

jus ter, the ne S}Onde11 t t s ·oookkeeper , o:r' by .!l~1 inc~e:tJenC::.e nt c:.ccountant. 

Pausing a moment to analyze 1Vh2,t has bee n saiC., it is s een tha t the 

investigation of code violations, --.-rhether unde r a mc.:.ss compliBnce or a 

sing le COi'Jplaint system, d epe1:.ded on the l{ee:p ing of adequate, correct 

records by the respondent. (**) Without suc!J. r e co::-ds r e s ort had to be me_de 

to the oral testimony of emp loyee s. Of course, in o. small percentage of 

cases the 1.rorl:ers kept their own hour an d \"! ,~e r e cords, but these were 

usually inadequate and ;rere ',vorth l e ss w1le ss coupled with the stat ement s of 

the particular employe e s. It was , of course, extrewe l y difficult to p rove 

the existence of a definite viol a tion without records, here the respondent 

d enied the facts. Then too, some instDnce s ;.78re found whe re disgruntl e d 

employees gave f a lse st atements and made u p ·oogus r e cords, actuated by personal rudt~ es against their employers or 111erely by the desire to obtain 

money. 

(*)~Field Letter 155 , p. l (Au~-t2 -, -1934 ) ~- ~~~ 

(**) This dependence of i n vestigat ion on the keeping of adequate records 

9 861 

i s d.iscussed in !;lore de tail in Chap t e r VII, 11The Ivie thod of Handling 

Compl a ints. 11 

Sl 

i! 

., 

' 

.. 

· 

i1 
The fal ificn.tion, incompleteness , Cl.nd . in some c ases , the total a'usenc e of rec.Jrd p l c:.c ed f1. s e rious obstacl e in the ···a;_r of he field staff 

in handlin;; ca ses . This difficulty was part ially met by the Field A.djusteru 1 c..ttem"Y)ts o eauc .tc e::1ploye . s to i nstull Ddequ ate r ecords, a s a 

r egulnr ~~)art of adjustme .. 1t worK . As a p 1r e ly volunt· y p ropositinn , holTever , results -,e r e far from s at isfa ctory, since the r esp011dents had 1)efore the:' fresh evidence of the advantage s e njoyed bJ' them in not ke p ing 

good records. Few code s contained provisions r equiri:1g the k eeping of 

books , E' • ..-1C'. there was no general Exe cutive or AdmL1istrative Orde r ol1 

the su"'J jec t . ( *) 

Ther e bein0 no general r equirement f or thG keep ing of r e cords and 

no legal uuthority i 1 the vOmp lianc e Divisio .1 to make inspe ctiOi.'lS , it 

WP.s atu C~ l that sooe othe r r.2ean s should be invented to bo 1st er the camr '3- i gn of ··education . One such ineans '7a s p r ovided for i n the Ac t , in tha t 

it stat.ed that, 11Upo _ re que st of the Pr esi dent, the ?ederal Tr a de Commi ssi on sha.ll make such invest i gat i oas as may be ne c e s sary to enable the 

Presi dent to c arr y out the p r ovisions of hhis t i t l e . 11 (**) 

An i nfor mal arr<.>ngeiaen t 17as me.rle •vller eby NRA turned ove r c er tain 

funds to the F ederal Tr ·< e -~ 1iss · en to be used f or i nve stigat i ng code 

vi olati ons , pur sua1 t to this s e ctio n . This ~J a.n Fc:tS empl oyed by the Nat i onal Compl ianc e Boar d in a nunber of c a s e s (*** ) and a lso by some 

f i e l d off ice s u noffi ci a l ly before ~ay 1934 . 

Final ly , i n F i e l d Lstter 107 it '7as announc ed t o a l l the St ate Office s .. 

that ~rhere a gener al sur vey of a si tuat ion was c a l le d for, or •vhe r e e.cce ss t o re cord s ha d b e en refused, they mi ght t t he s e rvic e s of a 

Fe de r a l Trad.e Co 1m is io n inve st i gator t hrough t h e F i e ld Branch of t h e 

Comp lianc e ..... :i..visi on. (  ) . This an ~""'.oun emen t had i mportanc e b e cau se 

of i t s ef fect on the i nvest i gat iona l techn i que of the fi e ld. 

~The~ let onal- ~du ·t; -~ R~~ ve yA ·~ Ti-t l e-I-, -s~ ction ~ 

(**  ) 

(* **) 

containe d the f ol l mvi ng p r ovi sion , 11 - - - The President, may , a s 

a condition of h i s a n r ov a l of any such co de , imp ose such condition s ( inclucii ng r equ irements for the mald ng of r eports and 

the keep ing of ac count s) f or the p r ot e ct ion of consumers, competi t ors, emp l oyee s, and o thers, and in furthe r anc e of t he 

public i nt er e st , -- a s the Pre siden t i n h i s discretion deems 

nece ssa r y t o e ff ectua t e the p olicy her e i n declared. 11 

lTat i onal Industrial Re cover y Act, Ti t l e I, section 6 (c). 

?or e xaP1p l e s s ee mi nute s of t he Nat i onal Comp lianc e Bo ard, 35th 

mee ting , De c ember 27, 1933 , c a se a ga i n st Rams ey 1 s II Th ey Cannot 

Ri p II, Ne'H Yor.<: Ci ty ; 37t h mee ting , January 2 , 1934 , cases 

agai nst Trucke r s Ice and Co l d Sto r a g e Co., Ltd ., Kenner, La . 

a"lld Wulf Bros , I nc ., New Yorl: City; 40th me e ting , January 5 , 

19:34 , CD3e against Edward T . Jone s, Kansas City , iio. 

(*** *) Fi el d. Let t e r 107 (Hay 8 , 1934 ), p . 2 . 

9861 
There was p reva len t the mistaken beli e f that the F'ederal Trade Commission At t orney Examiners had t he po er to compel the production of books 

and r e cords. (*) Conse entl~', thi s wo r k ing arransement with the Federal 

Trade Commission for the ir.ve stige .. tion of 1\JM c as es was used effectively 

as a l ever to obtain acce3s to· r e c 0r cls ''her e p erc ission to inspect· ·was 

first refu sed. (**) 

Still another i mportant adjunct t o the f i e ld t e chni que of in-vestigation was stated in a later i n s t ructi o1 to the St at e Offices. In order to 

guard agains t f a lsifi ed. recorcls and errone ous inforr·1ation the Compliance 

Divis io n n. vo~ed the aid of a f ederal statu.t e imposing heav.t penalties of 

fine al'lcl h1prisonrnent on persons k11owing l 3r maldng :false st a tements to eny 

offici a:l of the Uni te d St te~ with rege .. rds to any_ matter wit.hin the jurisdiction of any department of the Gove r nment. (***) J"hile the applica-o ility of this statute to c o.mp liar1_c e a c t ivi t i e s i s p rob 2 -n ly doubtful legally, 

neve rthe less, i.t served as a usqful 1.-.rec:l.pon for the fi e ld staff in those 

c 2.se s where the respondents a t t en ot e d. to f a l s ify or conceal the f a cts. 

Again the importance of t i1i9 was ot i :n its strict legal implications, 

but rather i n th~ pra ctical use to which it was put by the field offices. 

It is, of course, J· arent that the indif:?crimina .. t e use ·of anything 

r e sembling threats of acti on by the Fe de ral Trade Commission or of prosecut ion under the criminal st a tute on falsification, jus t mentioned, would 

likely cause resentment and create a harmful effect on the 11RA progrru-.1 . 

It should be borne in mind that the pra ctirial necessiti s ·of the situation 

requ,ired tha t the Compliance Division implement· its extremely doubtful 

authority to operate on even ~ modifie& i n spe ction system, which experience 

disclosed to be the soundest pL:.m of a ctivi-ty. Generally speaking, these 

t wo methods, above described, of .filling the gao of· authority, '-''ere used 

compar a ti v~ly rarely and 0 nly with . t a ct and car ~. 

'(*')" H~rre ve-;~:- ti~~Federal Tra-de Co~ ~si;n Act p~:f-~_; ide; for the comp~l;;ry 

p:;:oduction of records ar.td. informa tion only. on the issuance of subp oena s by members of the Como issiop. as .to matter~ before it. See 15 

U. S. C. A. sec. 4 9, 38 St a tutes-At-La r g e, C. 311, sec. 9. The is-

$U&J.Ce of such subpo enas, of course, involves· the following of a 

c e rta in procedure, and natural persons so re quire d to produce evidence 

~re granted amnesty from crimina l prosecutions b a sed thereon. Iclen . 

(**) This arr 2n gernent for the investig ation of case s should not be confus e d Y7 i th the provision i .':'l the Nat io 1.1 al Ind:us trial ~~ ecovery Act, 

. Title I, s e ction 3 (b) tha t ·any viol a tioh of a ·code in a transa ction 

in or affecting. inte rst !=l-te or for e i gn comme rce should be deemed an 

unfa ir method of comp etition '~r i thin the meani -..g of the Federal Tr e.de 

Commis0. ion Act. Unde r the latter s e c t ion action by the F edera l Tra .. de 

Commission was under its ··Jorv er t o i ssu e c ease a.:1d. desist orders E'.S 

provided in the orgaJ. ic a ct. 

(*"**)Fi e l d_ Let t er 185 (rJovemb e r 30~ 1934 ), p. l, })DT ap hr a sing Section 

35, U. S. Crimi nal Code , as amended June 18, 1934, 18 U. S. c·. A. 

s e c. 80, a s amended. 

9861 

'II 

.r 
- 89-

The sl~ l of tl e f i .J l.d of i.ce i n Innl~ · inv . ·t i c; 01tionG , und thGi r 

SCO e i :.11:. t:lOr OU._ hn .:>.:.> i n eX·IIJ1i. .in,, i tO th ~.:, f r!.c; t, , i • IJ'lr lVt d UCbUlly 

mi t l1 u:~er G::LCe . .But , s hu wn in th0 U ::.:' · CvC i •1f- sec t 0~1 0 , t he d ire c t ion 

1 i.!lld U) Grvi sio_) of i i ·; l cl Ad ju .... ters , thi ~ i ·urov-c1 ll:mt vas o.tt. a i '1 d t h r oll.'-';1 

a 11 c EJ.tch- ni' p .l oc e ss. 

I t ·l.· r· 1ot unt:l tt~ r the an ot1 e~ 1E t of' the crea tion OJ. t '10 ::c- g i onc:.l 0.::. i c es th t ·:-:.ny 'lo r th;Ih ile ( .• tt emp t --:as made to i ru_ t:cuc t t 10 i i "" ld 

i n t!0 ,)r op e r :..Yre9 q,1.·e tioJ. of c -=tsvs. I n a F i e ld 1 -:: tter (* ) a t th:J t h1e 

t n s .,ru .. t ion s , e re i .,uecl to the St a te Of .fi c c-:. egai~d g tho p r op ar c...t t on 

of affi d:tvi t s. Strc>ss wa s l c=ti d 0.1 t l1e f .'1.ct ~. t ti ... e suc ce s sful l iti{Sation O.L a <~.sc op ~.·' dG d to a l a r g e r .. e:··su:re o.l its iti l pl'e')L\l' a tio.L 

The r e 1 /c.s p ointed ou t <..l so the p r a c t i c· l v a lue of s e curin g affi davits or 

itn ~ed st~ em0nts fr o~ em lo ees , in Jes e ey l a Ler r etr a ct e d or 

ch a;1g e d the ir to iu ~ t1.: ou.r: h fear of cl isv ~la c; e or f or othe r r e J.sons. 

The s e i: t r u e ·c io 1.. ve re v a1u r·bl..; 0 oc <'..-u Nc t hey i nc lud ed sp e cif i c 

suggest ioi.1 <~ '-: to t he cont e11ts of the <: .• f f i d avits. Bri ef l y , tho f ol lowi ng 

ge e r a l rul e ·u t ... 1e d :ttr· t o ~)C in ud~..d wc;.s n.n 10lmc c d . 

Th e tr~ er1ent or <li fi e :".vi t d::.rc.l u. be i n i.1p c t e:r;ns , ·)r e f er :1.b l y 

in the si gner' s o1m l.::m t;-J. "'{;;G . r- "'Lo -:_ lc1 co :.. t <i r. t ile nwne , a,ge and a dcires ~ of t he ,--orl-::e r, tht :n. <t G of L1e ··r or;~ i '1. '_;u ·c 'icien t de tail to show 

the 8i ol ee 1 ~ c ede cl.:: .. s sLCi .. ati on , t : u )C ri ·-;c.~ of er1pl oyment , the n a ture 

of the viol a,t ion 2l legod L _ ~r s·oec ific :: i~ , and the employor 1 R a t -

titud e a:..~d c oup l i e nce and h i s :: '7 e of t he viol e.t ion . The f oll orvir..g :form '": c. . s reco :~: Je led t o .~ o- 7 the n o..tu:te of v i ol&tion: 

11 0"1 u. zus t , 1 934 , c- t tl1e r e ou sst of 

(n alJe of e r.1p l oy;;:r-:)y 1h 1 I c:~n emp re( , I ~;;ed '."or k 

a t 8 a. Ll . c..nd '· orked u...11 t il 6 p . :1., .v it l one ( l) hour .for 

l unc h . Dur i ::1g thc? t .-·ce , e nd:!.:1g -,. ~' 19 34, I •:rorked 

f i fty- two (52) hours f o r nh i ch I was ps.id ::;>_ _ a t the 

r a te of ~ pe r day j hour. 11 ( **) 

Be si de s the m~J OJe ' s <:ffi ci&vi t , me!l t io .• ed above , it :va s stat e d t hat 

the f ile si101.'..l d. nt~ 1 at l ee.st one 3:ener a l s'.-vorn s t ·a temen t cove ring t h e 

foll0\7 i ng p oints; t h e for:Y: o f ·ou s L! ess or ga11 i zat i on, and the stat e of 

inco rpor c-.t i on a:.'ld office r s ' n 2l!le s i :f a co o~: . t i on , the ~re of the emp l oy er' s ·busi 1ess i:1 de t a il, ·:- i th t he s i ze , J J.: a.l'l che s, and numb e r of employee s , anci t he p rincip a l mar ket s and source c of w n a t ori a ls. 

The se affi d.av i t s ,-_,e re i r:. t ended f or 1.1.se OJ.1l ;;.r in t ho S IS .:-~ e s which 

wcrr e likely to 'J e c 1me subj e c t :-.; of l i t i c;c:.tion . I t "r,A.s ·pointed out tha t 

the f a ilure to i nc l uC.e t h i s evi d e nc e; i n t}1e :<> i l e r e sulted i n u n11e c e s sary 

-:-.,--~-~~-~ · -~--~ --- - = --~··- ~- -· ~·· · -~ ~ 

(* ) F i e l d Ls-:; ter l (De cem ber 28 , 19 3~'1: ). ~! e c o ten t s 8Xe d i s cu ·-; sed 

i n the i.)ar agr ap h s '"'h ich f oll 01;? . 

(** ) Fiel ~ Le tt e r 191, p . 2 . 

9 861 
del ay s il1 t he f in.a1 e~p tion of cases .:mo. the i .mst i ution of a ction . 

Of like ir:_;_;ort ,·,;as tho f ['.ct t h.:..t i n many c ases it wa s exc eedi ngl y d iff icu1 t to PU:t.J Y t hi s evid.enc e a t a l e.ter elate i f not se cured du ring the 

initi·.l i nve st i gation . EmlJloy e es b e can e afr a i d to g ive furth e r statements E1l1C

1• r os:po nden ts g;2e·.-:r reluc:.t<mt to suppl ;;r fur ther i nforr:1c:t ion ild 

t o a.llo'7 adc~ ition l inspectio.1 of t :1e ir r e cords. 

At this _;_J oint t her e should be mentionec a p :top osal to ii.1prove 

fi e ld inve 3ti5 ntion t echni\!u e , i:hich was dev :. loped i n the l ate f a l l of 1934 . 

Through co:c1fer ence s bet·.1een repre s entatives of the 1itigation anC!. Comp li ance Division s and the Chi ef 3x8J-n iner of the Feder a l Tr d~ Cor:1m i ssion 

there ,·:as evolved a p l aa f or · the tr a i n i n.g of St a.te Comp li :;21. c e Of f ice 

st affs i n the :pr epar a tion of G. ses.~)Un d. er tne ro posed pr.oj e ct certain 

Attorney Exc:un iners of the Comn1is-;ion ·.1ere to hold si:10rt tra ining se ssi on s 

in t he St ot e Offic e s n8: 1ed on the suecifieo. list. It '7as felt that the 

techniq_ue develope d. by t h e F eder a l Tr.:-:de Co ission through its larger 

experience in invest i gating COi'lpl a L lts or.rm.J. l cl ·o e of gr eat benefit to the 

ComplL: nce Division's fi e l c.l of ? ice s L: im rovL1g t i1e q_u8.lity of their 

i,vork. That : h ere \:'a s ~1eed f or s or:.1e su ch sy st eD. nas fairl;,r evident. However, the :pr c-;,c tica l d.iff icu l ti es of }Jl a cing t:i.1e :D l a11 i n op era tion 

caused. the i Ei ti:J..tion of t he ·0roject t ·) be p o st p oned s ev eral ti:nes, so 

that it was never g iven a t ri a l o 

The c rec:.t io.:1 of the :g_egiona l Off ice sy stew h ad little noticeable 

effect o": the cLevelopment of investigation<J.l techrd que. The closer 

supervision of t he f'ield office s e..n cl the adcli tio·,J. 8.l personal contact 

through the visits r Heg i o.:: a l Field Repre sen t c.tive s or t he ir equivalents, furnished another medium for instructing and. tra ining the St a te 

Office staffs. The improvei•1ent of technique, honever, was mainly brought 

about by da ily ex-perience i n h s.ndling cases ·and cont in.ued to be gradual. 

The rest a tement of the stai.1dards of ad.justment i:."~ F ield Let ter .193 is 

somewhat more comp lete and definite form o~ .l y served to emphasize the 

develOJ?rnents uhich h nd been already made. 

Ho<:rev er , it i s not to be understood tha t no further a ttemp ts were 

made ·by the Comp liance Division to improve fi eld teclll"li q_u e . On the c ontrary , ·JegL\u i ng with ?i eld .Le tter 191 &J.d in the five mo:-1ths of compliance a ctivi t ies tha t follo ~l' ed, s everal not e·.vorthy at t empt s at improvement · we1,e made. The oin~ is t h o.t the ma jority of the fi e ld off ices had 

att c::dned the i mp roved st age of development t hrough experience prior t o 

the issuai.1Ce of these add.i tional instructions. 

In this co n;1ect i on, the f orm for ana.l e s of c a s e s to be h eard by 

the rieg iona l Counciles (**) f urnishe d a guide as to the p oints to be 

covered oy inve stigation . A few 'Heel-:s lat e r a ne-:v compl a i nt analy sis 

form i.'ias sent to the fielrl, r~ iv L1g iaore de t a il on ev idence of interst at e 

9 861 

., 
- 1-

CO'il1erco, i.e., [' O. to t e r espo 1dev1t 1 , ize , 'U'ke , S)1.lrc es of rc.1 Tli - / 

y e ri a ls, competitors , cha.I' a cter of advertisi"1 , &net metl1oc. of distribution', ;"..!J.d 0.ire c t e idence of ntc rst a~ s2les . (*) 

.A more '1•':g1· essive ps cl1olory of investi 0 at ion ~as R.lso i 1dica teu by 

an ins vructior. su ~. ·ostint, tht.t the Stt.te iC ·"~· he.ve t_ ei Field Adju s ters ch ec~: fil'JJS r.rho · e l abor exe:1ption pe titio··:.; 'rere de·1ied . (**) Ho -

eve r, a ba :~.n.1rd st0p 7as 1.9.'e r m- ie r estrictint. the initi ation. of rnn..<"S 

compli f'n ce i'1ciustr y s rv ys. I •1 . .iay , 1905 , nos:-; i ol y becruse of unf avor o..ble 

publ icity-re c eived by NRI\. i ·1 cnrincs uefore tho S· nate Fin::mco Commit t ee 

on the 11ropo ~e d extendine; leg islation, and 1J O ss i bly b e c ause of the _p_ending 

decision of the Supreme Court on the con stitutlon ::tlity of the Live J?oultry I 

Code , the St ate Offices were inst ruct ed ·wt to conduct any industri a l mass 

compl i2.Ilce surveys ' i thou t ::91·ior spe ci i c ap-.roval f om Ttfa shi 1t;to::t. ( ***) 

Pro b~ ·.bl the : 0 s t i r.Jp orta.1 t vOn tri out ior. to t !ie developr:wnt of field 

techni c._ue ant.. f i e ld off ice orga.r. i zat ion during the lJeriocl. 1.1nd P- r the Regiona l O:t' .. 'ices WD.s the evolutio;: 03~ the Coordinating Branc?l of new types 

of forms f or State Office use. This came as a result oJ: a survey of nonstanda rd forms in use by vario11s State O·ffices, conducted during the spring 

of 1935 . Their value lay L1 the fact tha t they teEded to•.-,ard a mo r e orderly ~nd uniform preparatio .1 of c a s e s. These forms, which have teen described briefly earlier i n this section, were an important part ')I the inech::mic s employed. by the State Offices in the hw."ldl in..,. o: c a.se s. (  ) 

During this se.rne gen eral period of de vel'o ment a men~') randum frora the 

Compli2nce and Enfor eme~t Director ~as sent to the fiel Q offices reiterating the instructio 1s co ntained i · Fi e ld Lett er 191 r~le.tive to affidavits. 

T'his memorandum cont a 1ned only e. gener a l admonition that the files sent to 

the ::tegional Off ices should contaiE at least o._e aff i Cavit from a person 

having a direct k_1o ledge of the facts, or fr.om t he invest i gator. Field 

of _' ices ::er e c autione d to mr>ke findine;s of violation s only 11here justified 

by the evidence and to consider the suffi c iency of the p roof for a counc il 

hearing in :9reparing a ca.se . (** ***) . ' 

- evieu ing uhat ha s been said concerning the evolution of a technique 

of field investigation , i t is striking that the majori ty of the deve l opment 

came from the experienc e of the Stat e Office staffs thens e lves. No uniform 

standards of investigation \.Jere ever ere c ted, nor was there any sy stem for 

rc>.ining and d ire ct i ng the field. staff ever p l c ced in op er a tion. Some p rogress \as ua.de in the d irection of uniform h1·o:..·over.1ent by the non-stanclc.o.rd 

form ~ udy by the Coor dina ting Br0n ch, by the- development of standards of 

adjustment by the sl ow process of c ronth of the Compli &..! Ce Division' s 

(*-)-- ~ Fi-;l o~ Lette-; i97 (:?-;br~ .-ry- ·4 · 1935)-:-·-- · --~- -~ --~-

( **) Fiel d. L~?t er 205 (Liarch ~3 , 1935) , p. 2. 

(***) Field .Le t ter 219 (i-:Iay 22 , 1935) , p . 1. 

(  ) See ~w.ge g,:, supra. 

(** ***)Field Let t er 209 (Ap ril 20, 1934 ) . See a lso page 8S sup r a . 

9861 
- 92-

policie : .::·:aci_ metho c:s of opera.tion, E:_a d -by the co·'1t inual L1.tercha11ge of 

ideas nn e~_ ex-periences o;-aong the fi e l d_ oi:!:ices t hemse lves. This gr adual, 

n a tural impl~ove ne nt of t !:e u s e of fi el d L1.vestigations, ho'.:ev er had ce:ctain practica l limi t e,tio:::s o.: its f.:. :CO',-.rth as re:'::,Dxded the t e chnica l lega l 

re q_uir e;:ae~1ts as to t he •.:;-:..:L":'.stct e r Md sufficiency of proof. This l ast 

f a ct probabl~r ha d gener a l r e co sniti;n L1. the Comp lis.nce Division as '."Tell 

as in t he Litigation Divis·Lon, '7hich vins cha r g e-:. with the actua l h£-ndling 

of c a ses p resented for l e[(i-::.1 a ction . 

In vie•.v of the f a ct that fen of tl.1e 2iel c1. Actjusters Bere lawyers, 

and there wa.s l10 regul ar syst em of tra L1L1g, the iste ~1 ce of these limitations i s ~1 t surpri::;ing . There alre ady wa s a knowled.ge of compliance 

condi t io:-.1s and. iffiA pc l icios · a,"1. cl a f axa ilia ri ty '.7i ~1 the p ractica l problems 

and the :JethoC:.s of inve s-G i gat i nc, ca ses, gc.=d:JeLl.. fror.1 a ctua.l experience. 

The re ':'ras nc~dng O!ll}'- ":.he l~no -..r lge of the technical l ec al aspects of the 

prepar2.tio:..1 of c a ses. 

I a a fe,·: of the offices, ho ··.rever, clepend.il1t_:: on the personnal and on 

local conc.i tio 1s, · the staff fLv: Jl~r att a L: ed a complet ed techni que of investiga tion, incluch g a ''7ork ing kno '.7l edge of the legal requirements as 

to the form a;:1d suff iciency of evidence. -

I 11 t~1i s co:.1nect ion~ some steps '.'re re i n itiated to complement the 

technique of fie1d i nvest igation of the rest of the offices. Under date 

of March :JO, 1935 the Acting General Counsel of l'iRJ.1. sent a r11emorandum on 

the prepar at io ~1 of c a ses for litigation to the ?.. eg io.nal Directors, members df J.egio~lal Cor:rp li c:mce Councils·, St e-te J i:,_·ectors, :.iegional Attorneys, 

Regio nal Li tit:;atio:,1 _U torneys and Assi st~!. t ComlJlie.nce Attorneys. This 

memor andum callecl a ttention to the pro-bl qDS of p ro1Jer i nvesti gat ion 2nd 

re q_ueste(-:.. the full su ggestions and comments of the St ate Directors and 

their stai'f 3 for a solution. 'J:lhere was attached a copy of sugc::,ested instructio:c .. s and_ report for i nvesti.g2.tors, prepaTed by the Chief Assistnnt 

U. S. Attorney for the Southern District of Ne':7 Yorko This pamphlet, '7hich 

contained. iaany practical ancl. hellJful suggestio:1s, ~vas a lso made the subject 

of comuent s -iJy t he f i e ld offices. Ho17ever, further efforts in this d irection wei."e halted by the termination of all comp li211ce activities on l:Iay 

27' 1935. 

9861 
Section 6 - The technique of r: d,justment by c onciliatory me~sur s . 

It has been shown i.n a u r evious ch-l'Jter tha t the functi on of obt a ining 

comulic>.nce had as an essenti C~ : e lemen t the adjustment of corn·)l :"1 ints of 

code vlolations. Adjustment in turn r adually came to me an the eduC?tion of the re sQondent to his oblip·a tions , the bring ing about of 

urescint conformity to the code urovisions , and , a t le st in the c ase of 

\~ge a nd hour viola tions, re st itution in full by the emu loye r of the 

amount found to be due the emryl oyees by the ?djustment .:v:;cncy. 

Coincidenta lly '.'ri th the deve l oumen t of the s t a nd::-.r d s and l'JO licic s 

of a djustment to the u oint just described , there c ame a bout certain 

changes in the technique Pnd mechanics of adjusting c ase s. The se 

change s 1:1e r e close l y corr el ated :d t h the impJ:ovemen t s in invest i ga.-

tiona l tecl1nique , d iscuss e d in the u r e c eding sec tion. 

Under the orig in? l Jlc? n conta ine d i n the 11 ~egu at ions for the 

AdJustment by District om li nce Dire ctors of Com-Jl aints of Code 

Violations, 11 issued Octo-b e r 19, 1933, t he only meens for a djustment 

u rovided we re by corresn.ondence 8nd office interviens. (~ )_ ~· me.- to J 

the l a r ge volume of comul.::- in ts :' nd the extr emely limited u e;rsonnel the 

District CompliPnc e Offices we re constra ined to handl e ~ses by the 

uns?.tisfa ctory method of cornesuondence, augmented s o f a r a s n ossibl e 

by office int e rvie·-s ·:ri t h t he r es•)ondents. 

·-:-i th the gr !'dual· dcve loument of the f ield org2.ni zati0;n u.nd.e r 

the Ste te Office system a nd the gro,:'Ti n.o· exoerience i.n n'l'f .q~_n!..ng com-

~) li nce, modificati ons ve re ma de in these meth ods of C"J''. a tion . 'Tnile 

corres"Jondence and office intervi eviS continued to b o us:...1_·c) they assumed 

a diffe rent a suect. In their stead there CRme i nto use f i e ld inte rvie•-rs 2nd other a.ddi tions to the a.dju stment techni oue . Ina smuch as 

the evolution of fi e ld com·o lia nc e u roc edure has been tre·-. t ed in 

e~ rlier sections of this ch ... -o t er, the fol lowing dis cussion ·~ i 11 n 0t 

reiter~te " descril'Jtion of the historic"l .develol'Jment of the rious 

- suects of djustm nt t e chnique . 

The fi eld ue rsonnel quickly r ecogniz e d the dis0dv" nte.g es to 

djustm nt ork of restricting their ctiviti es to corres~ondenc e ~nd 

office intervi~ ~s . Exuerience dict d the ne ce ssit y of mili rity 

ith the ~ctu~l business oue r e tions of the r esuondent for a nroner 

pe rforn?.nce of the com"9liP.nce functions. Accordingl y , A.fter Field 

Adjust e rs eg~ n to be F.l dded to the v ;- rious Sta.te Office sta ffs in the 

su r i ng of 1934, gnd the ne eded f a.cili ties ':'ere to some Jleesure urovided, the use of field intervi ews a ssume d l a rge importance. 

The va lue of int e rvi ev'! ing the res!)ondent . a t his l::l l a ce of business 

e nd at tempting to obt!lin c:m e.djustrnen t on the su ot, is sta ted in the 

following extract from a Fi e ld Le tte r: 

( *) 

(**) 

9861 

nrn the resulting inte rvie-r hours of 'VITOrk ~. nd sc n.le 9f wage s al~e 

discussed a nd the situa tion ca n be clea red or 8.djusted fr c:mkly 

8.nd ·~I i thout res en trnen t, since the adjuster h as the o-pp9rtuni ty to 

seek the emuloyer 1 s coouera tion before he has built Ul'J an a ttitude of rese~tm ~t and d.e.fensiveness. 11 (**) 

See suu r c>., p . 53. 

Field Letter 125, n. 12. 
Fie l d int e rvieT'T S r e c e iv e d t heir grea te st u se i n the l ecbor Dhase 

of c om ;li anc e . It h 0-s r:.lready b een sho':rrn t ha t t he deve l ou ed ry olic i e s 

and. st e?.nda rds or '8d.ju s tment b'rought about the nvest ion _of t he r esu ondent1.s xw roll 0 t h is ~l ce of business. The ne. turc> l p r oc edur e '17f\.S 

a t l eB.st ·. t o ·i n itiPt e the · r·:rra ngement s for E.d justrnent a t t ha t t i me . A 

c erta in usycholog icc.tl · adv ant a ge 7a s ga ine d by c.q.lling t he ·vi ol a t i on s 

to the re sD ondent 1 s 8.ttention .immedia t e l y t h a t they were d iscove r ed , and 

:D l a cin;s t h e employe r in the. -p o sition of h aving to sho:r h is :-sood f :d th 

by a gr eeing to ma ke a n adjust irfent. 

Moreov er, t h e Field Ad.jus t e r makinc t h e inve stig a t ion us1.1c'1lly 

est ablished a n entree in t h e course of the ins-pect i on a nd wa s able 

to a tta in f amilia rity with g ll asuects of the c a se. Certai n l y, it 

we.s more efficient in most · c a ses to a llow the Field Adj u s ter making 

the inve stiga tion to 8.:)pl y hi'S lmo·.vl e dge of the f a cts to a corre ction 

of the viola tions. 

Thus, it is seen tha t t he C'.dv antag e s of fi e ld intervie"."ls a s a 

me a ns of ustment e.r e thr ee"-fold. Th is u rocedur e wa s a more .. sim:9l e 

a nd more ns .:;ura l on e , '"'-nd the refore eas i .e·r to ·f ollow in everyday :9 ctic . It ·'mA.d.e a ·:na.re e ffi c i en t :u sc of the limited co~li nce 

f a cilities, . sinc;: e i :t -:;)r oo.c r.l y ;·" m~ elc te d the ' b irO int e r dep endent 

f ee tures :If ·i nY·J >.ti&" t:i 0:q. 2ml e.d.jus tme n:t·,-·, c:uid t ende d to avoid duulica t ion· of ef:f:' ort • .' 

Secondly, closel y r el a t e d to t he first a spec t, it enabled t h e 

Etd justment st a;ff s t o h2.nc11e c c,.ses with ·a f u'ller 8.nd more intima te 

knowledge. of t h e f a cts a nd t he · c.s.uses. of· 't he · viol8.tion·. Fr om such a. 

sta rting u oint it W8.s ossible to give the n r ·ope r tre::ttment to 

c e.s es so a s to crea te nermanent compl L:.nc e . It.· must· be r emembered 

tha.t com1)liance wo rk was not a mere mech8.nica l · t a sk of discovering 

v-iola ti ons a nd se eking res.tituti on of b c>.ck wa ,$; e s. l':h1ch more imp ortan t 

w2 s the educa tion of em-oloyers to their obligP .. tions·, convincing them 

of the b en e fits of . com li mce : obta ining t};;J.e insta lla tion of adequ a t e 

r e cords Pn d oth er sy s t ems to ·mc:tke the mechanics ' of code observ8.n c e comparative l y e a.sy , 2.nd the a ttempt ed a llevi a tion of comp etitive a nd 

othe r outside influence s which were fundament a l c auses of violati ons. 

Fina lly , there w? s a certe.in n sycholo-gica l eff ect a tta ched to 

fi e l d int e rvi evrs vrhich ·f a cilitated the ·adjustment o·f ses. It is a lmost 2 truism t hat speedy, coordina.t'ed h 8nclli'ng of a c a se is conducive to a sa tisfa ctory adjustme'nt •. . The ·informal u roc edure of i mme di e.tely ca lling the r·e s·oondent 1 s a tte ntion to Yiole.t i ons a nd requesting .a n a d justment vva.s c·ons.i st ent vr ith the iJronou.nc ements· of t he 

Comp lianc e Divis.ion offici a ls t ha t they de s ired to cultiva te t he 

g ood v:ill of busine ss men. Further, em'Jloye r s f elt l ess r e s entment 

tha n they did wh e r e they were r equired to lee.ve·' t h eir p l a c e s of 

business a n d come to . thb Sta t e Office for a c onferenc e . 

Like~"l e, in t he com0ar a tive l y smrtll numbe r of trt=~ de p r a ctice 

comola ints handl e d by · sta t e office s, fi e l d int ervierrs we r e "9 roved t o 

be of lu . This wa s 'Ja.rticula rly t rue i n t ho·s e c a se s in which 

fricti0n h a.d ur eviousl y ·: deve loued b e b '/een t he · r espondent a nd the 

Code Authority . A nerso·na.l ca ll at · the r est>cihdent 1 s :9 l a c e of. business 

9861 
- 95-

wRs often f und to be th medium of restoring frie:1dly r 1 tions qnd 

of c l enring uu mi unde st~ ndin . 

However, a l ar .1er numb e r of trAde ur actice c -s es ~: s h1.ndlod by 

invitin,. r esuondent :; t o aouen.r in the St '"'.te Offices fo r conference s . 

This WRS b aus e most St c:3. te Offices fonnd it necessa ry to c?ssign 

their Fie l d Adjuster s to l ab or viol ti ns . Also, ~s s been point ed 

out befor e , by their very natur e tr;:-.de pr a ctice violations we r e 

more susce~tib e of tre tment by con9 iliati on and di tion 1lllder 

the com ints pl an of p rocedure . Offica intervi ews on t r ade ur ac tice 

complaints we r e a lso us ed in a numb er of cas es where the Sta t e Trade 

Practice Complianc e Officer a cted. t o suuul ement the Code Authori ty 1 s 

efforts. These usua ily took the form o{ confer ences be t ween the 

r euresentative cf the Sta te Office , the r esuondent, a nd the compl a inant or the Code Authority's members, nhich we r~ a lmo st solely 

for nur-oose s of com-Josing th~ differ ence s of t he -oarti es. Little 

f act finding wa s nec essa.ry. 

In labor complaints office conferences .ha d a slightly broader 

a spect, although their u se was more restricted. Office interviews 

as part of the adjustment machinery .for de a ling Hi th lc:tbor complaints took tr10 forms. In a minor '9ercentage of ca ses the fina l 

prrangements for 8djustment could not be com~leted in the field. It 

bec2llle nec_essary then, to invite the .resn ondent to the Sta te Office to 

discuss the set_tlement of the case. This might be due to the f a ct 

tha t certain imuort?nt. que stions of '9 0licy '.v ere involved in the cas e 

~hich mcde it advisable for the 2djustment to be ~e rson lly sunervised by the Labpr Comuli ance Officer or a member of the admin.i strative staff. Also, b~c use of '9eculiar circumst2~ces in a case or 

on account of the :9ersonPlity of the res1Jondent, it we.s sometime s advantageous to seek an ~d justment through an office interview rather 

than in .the field. 

In the latter connection there should be noted another cause 

operating for the em~ loyrnent . of office intervie~s in the adjustment 

of ca ses. The intern l organization scheme used in some of the 

offices Tias so devised tnat · the functions of investigati on and adjustment were -largely divided, so that the latter was chiefly the 

province of the office staff, r ather than the field staff. (*) The 

latter v;as notably true in mass compli c:mce surveys, discussed in a 

later chanter, although it was used by a few larger offices as a 

regular system of operat~on. 

The second form of office interviews Tias the joint conference beb v.een r espondent and com·ol a.ina.nt. This closely cor.1bined fact finding 

and adju-stment. This type of interview, vrhich vras more in the nature 

of en informal arbi tra ti on hearing, r12 s used mainl~r where no adequate 

records existed or where for o~her re?..sons the f a cts were obscure. Its 

use extended chiefly t9 the code s covering industries characterized 

by small establishments, such as Retail Food and Grocery, Restaurant, 

and the like, The procedure a t such conferences 11a.s to dran out the 

facts, as far as possibl e , by que stioning both Darties, and then to 

attempt to arrive a.t a mutually sa tisfactory adjustment. Such p rocedure, 

(*) See discussion on the fina.lly devAloned int ernal organ iz.ation of 

field offices, Chs.pter IV, pp. .1: -~~? . 

9861 
- 96-

it is true, l eft considerable room for de? rtur es from djustment 

stc.ndc.rds. Ho·:.rev ur, it is to b e r er.J.o;;mberod thc:.t this ty"?e of joint 

hec,ring wo.s us ud o.lmo st s olely in tl1c more or. l oss small, unim-oort ant 

intra state t:md service tr.:.:.dc c :-·.s...;s. In t:ne ab sence of a Un.iform requirement for the keep ing of r e cords c.nd ·oower to c om·oe l the procLuction of ev idsnc e , t he c: ctic e rms ~. :c ded. < ...s o.. makeshift to t ake 

C;J.re of an immedi nte si tua tio'n, in the szme ,gene r z.l category a s the 

susuending of fina l o.<iministro.tive c.ction on c e rt c:.in code s d'eemed not 

suscep tible of successful ·enforcement. 

As a suuulcment to the methods of ;:.dju.stmen.t just described, the 

Sto.te Offices continue d to mo.ke use of corres··.Jondence. It ha s been 

shown tha t origina lly practic.:'.lly a ll com-Jli;;,nce efforts ,..,ere 

ca rried on by this means. Its dis&dvant age as a prima ry method of 

ope r a t ion 2.re appa:rent. It undoubt edly bred delr.1y t:md dec e it on the 

part of industry memb e rs, 0.n c:l. s erved to creat e t he im,Jre ssion of inefficiency 2.nd ine ffectiveness in the c om·olii:mce mo.chinery which bec ame a greo.t hc:mdical} to t he field offices in the ir relations with 

industry, l abor· nd the nublic. 

As quickly as nossible, therefore, the St e..te Offices ce o.sed to 

use this ty-pe' of procedure' exce"Dt for the ini ti2.1 notice to the 

resuondent. end ·for· such corresu ondenc e .:-.. s . ·:-;-fl.s necessa i_'y incidental to 

the investigD.tton a nd. <- CLjustment efforts in the field. Moreover, 

following the suggestion · to th t effect in Field Lett e r 125, even the 

ini tia ;L notice to resn onden t s 1:112.s l c.r gc;ly e limino..t c d._ ( 1~1) 

. . 

H9weve r, _in the l a st fe 1: ; months · of compli 2.nce history, corresuondence c ame again to be used for the handling of the ·service trade s a nd 

some intra state . codes. 'It was felt th t the time and energy of the 

Field Adjust e rs ought to be c ons e rved for the l o.rger, more imy ortant 

codes covering industri e s which 1:-rere c onsidered to be engaged in or 

affecting interstate commerce. This a lso 1.1as r egc.rded as a tem1_1orrtry 

arrange:rpent lJending the det rmin t~on by the officio.ls in Washington 

as to · the dispos~ tion of tho code s in que s tion'! 

. . ' 

In the cours e of the months of er?eri enc e in preparing unadjusted 

compla ints- for furthe r o.dmiriistrc.tive a nd l eg2.l ac tion, the Stat e 

Offices evolved a nothe r -pa rt of the 8djustment t e chnique Tihich mc.'l.y be 

call8d the formal hearingo This may b e distinguished from the office 

intervi ew and tJ:le St a te Adjustment Board h earing in tha t it was 

essentially a l a st 0:9-portuni t y to a·.Juear b e fore a member of the State 

O~fice staff and. make an adju stment of the co.se. 

· When inve stige.t ed com1Jla ints h .:J.d 1'eached tho stage where it was 

f e lt tha t little more of an a d.ministr:?..tive chc..r a ct e r coul·d be done by 

the State Office, it v'7as de t ermined ·wh e ther the further action should 

be suspended, _ a s in ''- limit ed cla ss of codes, or tho c ase should be 

tr8.nsmitted to a higher agency with tho r e commendation that administra tive a nd lege.l sanc~ions b e invoke d. 

0 

c 

f 

t 
- 97-

P<rtl y on the su ggosti·:m of th Liti c:ttion Divislon' s fi e ld men 

und to some m CJ.su e on their mvn ini tia tivv , a number of tht... St.,.,tu 

Offices c.?JIJe to u se th forma l 1 0c." ri nt; as n. r t;;'"'Ult"lr stl3) in t hu hnndling 

of uno.djus t ud c as s . A notic ,-~s s~:: nt t o t h0 r cGJOndei.lt , usur lly by 

t e l e ·r (1:p:h or r ogi st r ed mt:' il, st...,ti ~ thut on invu~tigation ha d disclosed the viol<'.ti0n of cert c. in n.['J!led code '1..1 r ovisi ns WJ.1 ich he h a d 

f a iled or r efus ed to <"' djust , 2nd informing hi.n of a l ['st O·JJortunity 

to appear C).nd corroct tho vi oL.t i ons or sho1.'7 se rrhy furth..; r 

e.ction should not b o t t'k<.m . The notic e su0cifiod t he time and p l a c e 

of the hearing d the ue r son be fore •:rhom the re s·Jondent wo.s to auuoa r . 

At the h e a ring the mE:rnbe r of the StD.te Offi ce sta ff, usua lly 

the auurop rio t e com,Jlic. nc e officer or his assi stant or the Legal 

Advis e r, info rmed the r esuondent of the gen or C'J. na ture of t he cha r ges , 

and r ead and exula ine d t he ~e rtin nt code p rovisi ons. A r equest for 

a djustment ~-,a s the n me.de Pith t he eX'Jlano.tion t h.'"'.t in t he ev ent of r efus a l the c ase .rould be r e c ommended for a ction by tho Un ited StClt s 

Attorney. inute s of the h enring •:Jer e t Jcen cmd a transcriut included 

in the fil e . 

These forma l office hearings se r ved t '.'O ·l?ur-oo ses. A c erta in u c rcent['ge of ondent s ~e e influenc ed to ad jus t their o~erations a ccording to the ur escribed standa rds. On t he other h and, the notice 

took the ulace of the r equired ·notice of vi ol a tion ·o rovided by 

Bulle tin No. 7. The h earing b uf or e a high e r r enking memb e r of the 

sta ff, ft r c onta ct hr d b ee n de by the Field Adjust e r, served to 

r eul a ce the urocedure '"9rescribed in Bulletin No . 7 for c. r e su ondent 

to D-'"9'9eal the de cision of the corrmliance office r to the Sta te Director, 

F.nd from the l a tte r to the Stat e Adjustment Boa rd. (*) In the l a tte r 

conne ction, the Litig2 tion Division aupnr ently f e lt tha t the granting 

of a hearing n ith notice to the r e suondents 1::ould tend to eliminate 

some objections of the courts :!i th r e f e rence t o due 1Jrocess of l a';'• 

One other Dbase of the E.djustment roc du:L·e <.~ lso :_Jrovided an im-

:_Jart i a l hearing a nd. a means of a.p'9eal for com Jlrin nts a nd resp ondents. 

Bull e tin No. 7 "Orovided :or the creation of a Sta t e Adjustment Boc.rd, 

to serve in a n advisory c a"9acity to the Sta t e Dire ctor, and to h eG.r 

E,uueals by r e suondents a nd comnla inants from de cisions of tho St a te 

Office . (**) -

This c ame to be c:m imoortont Dart of a djustment :_J roc edure, since 

in ur a c ti ce the Boa rd's us e w~ s extended beyond t he r a the r na rrow 

limits :pr ob ably intended by Bulletin No. 7. 

( *) B u 1 

__ , e t. 1n ·r 7 1.- H t' 1 t t t. \O . , · J• _o~eve r, ne rep e c emen ~as no en 1re , 

es'"9e ci2.lly a s to .St a t e Adjustment J3oa.rd hearings, 2.s \'ill b e 

noted belon . 

(**) Bulletin No. 7, pp . 15, 16. The orig in, velop~ent, a nd use of 

Sta.t e Adjustment . J3oc,rds is the sub ject of a subs equ ent s e ction a nd 

will n ot be discussed he r e . 
- 98-

Be ing c:, vOlUJ:\t r- ~y, )m.nartia l a t;ency establishe d a:92 rt .from the 

Com1Jli::·nc e Divisi on, its· de cisions c a rri e d 0n inhe r ent l? res tige . The 

k eynot e of tho. B·o2.rd ~· s impA.rtia li t y . 

The ma jority' of · the C<'1 s e s r e f e rre d to the Sta t e Ad-justme nt 

Boa rds ( c.nd o..lso · the ·tocc- 1 Adjustment Boards) 1.-:rere one s involving 

disnute d questions of f t .ct. It ;;ra s each Board. 1 s function to de -

t e rmine the f o..cts in the l'Ja rticule .. r C'-1 s e b e fore· it C'nd t:hen to r each 

2" decision as to the adjustment require d , in the event viola tions 

''Wre found. 

Be cc:,use res;')ondent s g ener2.lly eg~ rd d the h e['"ring befoJ. e the 

Boa rd c\ S s . semi-judici,.,"l Droc eeding , it f ollon ed 2.s a n a tur:tl cons e quence tho,t tho de cision of the im·oa rti a l c~g ency c a.'rri e d much 

'ive i ght ~n L1.flU:e h ci'n8: thE; dju tment . of c a s es. Lor e ove r, this value 

as a pa,rt of the P.djus tm·ent t e chni·::J_ue extended even furthe r. Hany 

resu onde nts vlere sufficiently awe d by the lJroceed.inGs before ': 7h a t 

was conside red a high er tribuna l thoX they •Jreferre d to a djust 

their c a se s. r a ther th llory them to be r e ferred to the Sta te Adj~stment Boa rds for hearing s. 

There · has b e en st ~1 ted a C:.e scri')tion of tl~e p r ocedure and 

general methods follov.vec_ in adjusting c ases. ·In a: J~Jl ing these 

methods successfully the u s e . of -rJra cticc',l <Jsy cholo..:;y , t o,ct, and othe r 

intangible '? er on l quc-tli ties YP ~ of . •Ja ramo1int 1m1Jort anc e . hiore often 

than not the chEJ r a cter . a~d qua lity of the fi e ld 1J ersonnel ':Va s . the det e rmining fac~or in· succ e ssful comuli "'.nce '-rork . It ,-,c>,s ne cessary 

tl12.t the reglilA.r m$,ans o·f ,2.djustme1-lt . not only be used skillfully , so 

a s to atta in the best sults, 'but tha.t they ·be a u gme nted by 1h a tever 

devices the ing enuity _ of .the Sta,te offiee .stnffs could conjure. 

The 'c om-olic a ted ric:\.ture of the 1Jroblem of r egulat g the everyday e conomic rela ti ons of so many DeO•)le na turally nec e ssita ted the 

invention of W8 "jTS of ma king the -proc edure ·o rovided a dapt able and 

effe ctive unde r loc2.1 conditions. These sulJ•Jl ementary adjustment device s ·"Te r e _so mr:my a nd .a ried tha t o. ·discussion of them -will not be 

attem:9t'e d at t(h:i ·s ·,)oint. ThE? m.or·e im,Jort ant one s ':·Jill be mentioned 

in a subse ruent cha·ot'e·r on the iJ.roblems a rising out of the settlement 

of comnle.ints. 

Ii thout ente ring into a n a na lysis of com1Jl::dnt sta tistics it may 

be stated e,t !this time tha t 50,240 c 2 s e s of l o.bor viola tions y•ere adjusted by the . st2cte offices a ga inst 3, 673 Vihich n e r e refe rred. to 

highe r aut~v_:-, ri ty becClu s e the ste..te o'ffices were 1..mable to adjust them. 

About ha lf of the l e:t t e r numb e r yrere ev en t u FJ.lly a djuste d by the Complia nce Div i sion in _vla shing ton or by RegionEJJ_ offic e s. There we re 

19,674 trade ur.a.ctice viola tions a djust e d by the· State offices and 

2,950 referred "to highe r authority. 

Se ction 7 - Non-disclc sure of the sourc e of comp l a ints. The instructions 

to fi e ld office s, · it his b een shorm, ·:re r e cle ar thn:t the s·ource of c omplc-dnts rr?..s to b e k en t strictly confidenti.:.l 1..mle ss the comnlaina nt 

g ave express pe rmis s-ion for th~ use of his n a.-rne. ( 1 24 ) .. 

(1 84) SuJ)r a , P:;J • 9-i Office -~ nu l III - 4121.011 

9861 

':'1 

·' 

0 

b: 
- 9 -

The imm d i c>t e 1·e~s n for tr is r,1l e T r; , of course , thnt tht.- disclo!"ure 

of t he c om,)l u inC'nt 1 z id on tit,,r o:'ten l~C"d t o me ., sur~,r of rutn.lL-, tion 

by t he r esu nclent , us 0ci c.1 JlJ: in :lt~ cr-se o.f l <1b01 com )l"".ints. (*) 

The im ·')rt:-ncc of this ; r· ct to h~_. C1m')l...i"ace Jroe r ."m lay in tho 

02 sis of ·1 r oc edin::·s , t he fi in ~ of c oru l int, s . Sine..; tlw ini ti "1. 1 

step in the u roc c:- dure ···rs the nterin_:· of'- con·ml;J.int , it ·.vas e.,senti['.l 

to u r omote tho illin rne 3 of cmJl Q .0s , o~Je tit ors -nd ot hc s to 

r euort viol tions . 

H weve r, .: s l ;:mg P £" the fi eld offi o~ •.-..o r e uncle rna nned , a nd 

<s l on a s they r:re r e f orced to f ollow t he u r vcedurc of notifying t he 

r esuondent of the c ont ents of h~ m~l int a nd of· a cc enting his 

exu l a na ti on , n o s a tisf;.ctory u r oer oss could be male . Ei the r furthe r 

e ff orts on thE- c se nould h : ve to be dro o:ped , or t he c um,Jl a inant 

Tiould b e ca lled ') n t o su0· or t his ll ti ns. In t he l a tte r ~se , 

of cou:c se , a nd a l so ev en sorne t irnl-s ?he r e the or.:- Jl~\i nt \7;:1 5 closed , 

the r esuondent could r eadily c: sce rt ~ in tht.; source of the r e·Jort. 

This consequ ence of the comu l a ints 0rcc edure r esult e d e ithe r in 

making the c ompli a nc e officia l s a.IYoear ridiculous or in de t e rring 

other emuloyee s from om~ inin , usua lly b ot h . The r mifica tions 

of this robl m '.'7 er e soon s een by fi e l d offici::>.ls c:-.nd r emedia l steus 

ere taken wher eve r p ossibl e . 

This is r e fl e cte d in the treatrrent of a nonymous c ornDl a ints. 

The original rule tha t com-olaints of ?P~ violation be fore the Loc a l Com-o li8.nc e Bo8.rds h £d to b e signed, w.:.s changed ·on ·october 19, 

1933 to make e ction on a n onymous cornul 8 ints ~iscretion ry with the 

District Comolia nce Direc tors . ( **) The l e.t t e r ,,7as r e ite r a t e d in 

Bulle tin No . 7. (***) But t rro deys aft e r the issu2nc e of Bulle tin 

No. 7, ho .re:;ver, it Pas thought necos S['·ry to cl rif~r the rule a11d by 

infe r enc e to urge the h andling of a nonymous com,Jla.ints exce"?t vrhe r e 

palp8.bly f a lse or unfounde d. (  ) 

ith the additi on cf Fi e ld Adjust e r s to the Sta te Offic e staffs, 

and the d evelo·0ment of the ir 'use, it h a s b eGn sho·,m tha t modifica tions 

Jere mc:.\O.e in the p roced.ure of handling ca ses. (** ***) Thus, investigation came to incluclo ins"'9e ction of the entire "'9ayroll, a nd the use 

of office comol a ints a nd ma ss comcJlio.nc e methods became increasingly 

p opula r. By chang ing to these me thods qf a11p ro2ch in the handling of 

violations, the source of inform~tion au tom tic lly t ended to b e come 

impe r son.:tl . This w.as found to b e the most successful r.'ay of dealing 

VTi th the ·9 roblern, a lthou gh it in turn vras handica·ope d by the ab senc e 

of ade qua te r e cords in numb e rs of c 2 ses a nd by the l a ck of l egal 

authority to make such inspe ctions. 

(*) This entire subj e ct of ·prote cti on of c om-ol e.inn.nts' identiti es 

wa s e.n outstcnciing 1J:toblem of the Corn-olia nc e Division and is so 

discus s e d in Cha·0te r VI I, infre. . 

(**) Sup r a , pp. 51, 52 

(***) 

(  ) 

(** ***) 9861 

Bulletin No. 7, P. 11 

Field Le tter 48, -o . 1. ·se e 8l s o Suu r 8., p . 

Sup r a , p-o . ~~ sc , 69- 7:. 
-lOC-

. . This unofficia.l me thod of ee tin~'"" t he .issue -~ns su·J-r:J l emente d 

on l\lig.y 15, 1934 by t he issuC'.nc e of Ex tiv e Orde r 6711, which prohi.bited under 'Jt:malti e s of f ine and inro risonment the dismissal or 

d emotion of em-o loyees for filing com'·)l 2.ints or g iving evidenc e in 

connection 1?rith coO.e viols.t ions. Since 'i'7 e 8.r e r,n~im rily concerned 

here vri th the effect of the pro cti ~ of c om;?J.a ina nt s 1 identities 

on the procedure follovre d in t he f~ ld in e.djus ting c a ses, ho':'!ev e r, 

a discussion of the a•JDlica tion of this orde r T: ill be l e ft until 

a lc?.ter cha·ot er. 

As an outgrovvth of the .d.evelonment ·of com-olia.nc e p rocedure, 

it became the >Jr2ctice to withhold the neme of the comol a inant at 

all costs. Thus, the re n2.s seen the situa tion, incongruous vrith 

our basic lega l c once'9 tions, that r es\:; ondents T:;ere told tha t they 

had been found to be in viola tion of t heir res-oe ctive codes but were · 

not . informeG. a s to e~:a.ctly 'i'iht:>.t ·oe.rticulars. ~7 i th the st2.tement s 

o:C em'9loyees alYTeys a p rime source of. information u..."lder .the comulC?.ints 1Jlan of urocedure a nd. c..lso unde r the m2.ss comu liance - -

sys tern where r ecorcls were l r: eking;, it '7e. s pre.ctic2.lly impossible 

to protect the source of comu l r.int r:md a t the sa'Ile time to name 

the s1Jecific emlJloyees Y"i th reg2.rd t o -· hom the vi ol a tions ha.d been 

committed. 

This uresuuuosec1 a n almost imulici t c onfi.clence in the im-r)artia li ty of the l'ffiA: . . a feeling nhich T-qc- s not a l':rpys ures ent. On 

the other h and, many re s 1JOn6.ents res ent e d '~hat ·t hey considered to 

be sta r chamber ·orocee.ding s, f eeling th:;--,t ha.d. the right to f 2.ce 

their accuse rs, or at le 2.st be infor!!1ec1 8.s to the exc:..ct ·oarticulars 

of the violations ch:::-,rged. It is recognize d t h a t this e>.tti tude ~y 

resuondents ~~Ta S ua rtia lly fallacious, since exc eut in the 'CR.s e .of 

l a rge emp loyers, they were orciinc:,.rily in a 1JOsi tion to kn0'.-7 how 

their businesses we re conciuct ec1 . Nevertheless, that feeling· ':.ras. to 

some mea sure the genesis of the r eaction a gainst lffiA which so manifesteo. itself cturing the 1:-·s t f ew month s under 'the code s. 

Therefore, the re quisite confidence ''Ti th ''rhich the source of 

compla ints i7<'.s trea.tecl '.'tas im·o ort;:- nt for · t \v o r eas ons. There '.m.s, 

in the first ple.ce, · a trouble some 2.dministra tive p roblem created, 

which ha d to be met. In the s e cond Jla ce, the ob servrnce of this 

c e.rdinal rule of s e crecy ,-,a s a l arge motiva ting influence in the d.e:-

velopment of the methods e>vncl t e chni que of investigating and adjusting viola tions. In the l a tter es~Je ct, the r e sulting encroa chment on func1e,ment a l lega l p ririciole s ha s already been mentioned. 

However, while the pr a.ctice of refusing to c:tisclose the 

source of informati on l ea d to r esent illent' on the p~rr t of r e spondents 

and was rega rded in some quarters e>.s a clangerous inv ;:-~ si n of constitutional rights, some r e lief from this op i,ni on ':'/as founcl. in the 

provision for hearings b e for e impa rti a l boa rds. 

These agencies "rhich we r e known as Sta te ancl. Local Adjustment 

Bo a rds, 1're re d e signe d p rimarily to h ee,.r au>Jeals from the de cisions of 

the v e1.ri ous St.:' te Dire ct ors e>.nct t he ir sta f fs .(*) Through their int e rvention it was uossible in a l a r ge n rou ortion ~f ue~ c a ses both 

(*) A discussion of origin, . -.;:>Ur Dos e ~' nd u se of these boa rds is con9861 t a ined in the next secti on. 
tourot. e ct the COffi'.)l u int\nt 1 s i dentit:r c !'ld. nt the spme time r t -- in the 

r es ondont 1 s ~- ood \.ill 'Ul.d co :--, J.~id ..... nc l) . 

It should bo macic cl ar , 10"'0Y .... r , h~~t t1 ..... , ..... ttltuJ.o of r esuondents descr ibt.d i1 t.re fore '"·:oin::· ·, r-:• {; n· s ·· ~~ b ' no moans univ ~,..: rs a l. There ,-e r e <=> f~·: of the om'::> J.o j·u ~· ·rh o "0 r o c:. "ulo to unders t .11n d C?nd 

agr ee \·ith tho neec".. fo ~: l~ ..... t...) int., the soul'c e of info ... r-J[.tio,1 confidenti C~ . 

They r eco gniz ed t h8 inh8 r ent limi t r tions of th . c omal a ints ~lan of 

proc edure and e~1i z.J c1 tho t i ~3 s· .LCC8s s C' doende cl to [1. l f'.rge degre e 

on th ir co ouer ? tion . They a l so took cogniv ce of the f a irne ss of 

the rule of confidt.mce , since n s <1 corolL r y to it, t he field office s 

"'ere instructe d not t o give any uublicity t o t he f r et thC" t a com-

-p l FI.int he.d b een fill:d a J inst c:o ue:.rticula r reS")Onc'.t.:mt. (*) The l at t e r 

instructi on , ho ·1ev ·r , b e i ng not s o e s sentL·· l t o t he c onduct of comp liance ['.ctiviti es, n eve r r e c e ived t-10 strict rupli cLtion imoos ed on 

the v rot ecti on of thv source of c omo l .?..ints. 

( * ) Bull e t in :- o • 7 , n • 7 
- 102-

Sect i o;.1 S - Hearings by Lo cal and St a t e .Ad.,iu,s mer~t Boar ds. The i dea. of 

2. s:rst e!u of v oluntary· , i rrroar ti e.l b oa rds t o a ssi st i n t he handl i:tl€, of 

co; nl2 ts of violat :lons ;vP1s n ot new wi th the -or ovi si orl f or Stat e ,.Ad..., 

.j u st1·;1e:1t Boar ds ·by Bull eti a { o. 7. (*) · As early as Sept emb er 11, "1933-

there had ~e~1 a nrloun c ed. t he e st ablishment of a syst em of Loca l Com-

_) lisnce ~.J d~ t o h a:r;_ dl e COITf1J l a L1ts a l'lci u e titions for exemptioi'l u;:.O.er 

t~1e PRA. 'The s e arl~ r b oa r ds· were so c onstitut e d tha t, g enera l l y s·1ec-k-

, they we re sw19os e d to r ec uncil e the conflictinb i n t e r est s of the 

i;:~; lo , . t.t:le work e r · and the consumer. 

Lor eove r, some such type of a gency was apnar ently cont errrol a t ecl vthe'-1 

t~w l Industrial Recovery Act wa s DB.sscd, for Titl e I, s e ctio:..1 

?.( e.) e.rtho r i z e d the Pr e sident 11 to establi-sh such a E, enci e s, t o a cc e:Yt c:.::.-,d 

Ut ili ze SUCh voluntary and . U.JlCOmnensat e d 's e rvice s II G,S he . ht dee!i1 ~1e.oo 

cessar y . 

Duri ng t'he exueriment a l stag e of the fi eld offices from Oc tober , 

1 903 , t o J anuary , 1934, it b ecame ar.F)ar ent t na.t a number of i mpr ovemexcs 

i::. ·cl1e com:r>lia nc e fi eld organization wer e n e e ded. Included amon& tl1ese 

we re 'she n ee ds f or a b e tt e r defi n ed procedure a n d for a more ade-quc-.. t e 

:Jersonne l. To fill arti lly bo th t h es e r equir ements ·ther e was provi fed 

a system of imDartia l, volun.t a r y a g enci e s to ""~ erue nt t h:e acti vi t i es 

of t he regular fi e ld organi zation . 

Ll 8 . l e tt e r, dat ed J anua r y -?.0 , 1934: , tb the n ew St a te Dir e ct or s 

zc:6. i :..1 J ulletin Fo. 7 (issu e d t wo day s l a t e r), it we.s annou n ced t h e.t c-. 

Stat e Ad,j ustment Board would b e e stablishe d i n each st a te c) S part of Jcl1e 

}e :ne :-.e nt comp1ianc e system.(**) ':i:h e ;ur: os e of the s e boa rds was to 

cl~ ec: te a 11 orderly l)roce dur e f or t h e h earins of a.:r;'; ee.l s by those :·Jart ies 

&i s~ d with t he de cisi ons of t he St a t e Directors or t heir staffs. 

he~ we r e a lso to hear c eses r e f e rr ed by t he Sta t e Dir e ct ors end Pere 

t o serve )_:mr ely in a n aclvi sory e.~oe. ci t y t o t he l a tt e r. ( *** ) 

Such wa s the a!Jlla.r ently limit ed s C01le of the Adjustment Boa r d s. 

Uith er1eri enc e i n t he use of t h i s type of a g ency , however , thei r ut ility 

we..s ou~1c1 t o ext end much further a n d t h ey came t o b e a.n i mport e..Tt aC:.ju~ t 

of t h e ; oveJ: nmental code co li nce syst em. 

CL'he fir st St a te Ad justmen t Boar d.s we re orge,:1i zed and b egan to fu:: cti o:i.1 L1 Feb ruary, 1934. Th eir numb e r e.n d loca tion was me.de to cle~Jell<i. 

u 1on e volume of c a ses submitt ed a nd_ on local needs. ( **** ) 

I n2.smuch a s the Boa rds wer e to s e rve a s a f or um f or t hose clissc>.tisfiec"t. Wlth the St a t e Offi ce s' dec i s ion s, it wa s i mpe r a tive t hat ·(;he,,r be 

~ ii.-r~;a rt i a l. Th e refor e , they were c omposed of equ a l r enr e s en:cc> t i on 

fr o~11 eJT•loyers a n d wo r k e rs, wi th a n i mDart i a l cha irman to r epr ese11't ~1e 

(* ) Bull e tin }\To . 7 , :;F"l . 15-16 . 

(** ) I n :fRA Studies S]J e. cia l Exhibits Work Ma t eri a l s -#83. 

(::<:~** ) Ib i d ., p . 1 5 . 

9061 
·•n.:>l i , 

("' 1: 1 ... v 

u - t 

' ' -' 

-l(l:.J- . 

·:') 0t'~r:· .. ,: 1 ., -~ .... [In,' 

t .• " rc .. it'·. · · :j .1 

i·~.t r 'p ~, t. 

s 

m.l•)r vic: P•~- ~- e .:>el.. t i. ·-·, 

'?.ctor i;1 r~. f'~' li·~.:. t' 

viousl··· t ·!..- . , , c·-: h<:'.cl : 

i. , ... 

1'<;C 

1'"'''• 1 ; 

..... . \ ' : . ': i (' c--. c,... 

j"l!' ~!'IL''1 t ":'0 " r C; 

~ • , '. ~ ··, ' 1 i' I •.., ~· t, i. 

·· ·· i I ,. .1 i_ 

s <'~1 :!. 11)(\ 1 t nn t 

n~e,cy , si~c obG~lc l ·t ~~to c m-

.' 1 ' r c r·- o ·1 c' "' 1 t s . 

·v el 

r·:.e ·1e rr; ~ i.n .' St:;tc r :. · 

" • se:·v · ···it l'·n t .o me·- "ti··n . 

o arc' ..., . ·1 <' i ~ t r' 0 f 

Pcntive . S"i.. t'-'::t , 

·1 -.~:\""Cllti.vt' S..:8r..:.t--:. · 

t'1·· . ~... -- "'1 .l~ vi er , · :v-· 

·:· atio·1 o.£' L0cPl 

. , ~ 

c t :1' St; te Acl just"'le,t 

• r:t" t '1C' st-.te: n . fico ~::­

·;e·lu s "' -.~ t.he cJ ('j.' i •J, J 

of =:esic. e:'..t :::-'i 1 ·'. _..,6j<.1~t--rs i :1 Jun." , J~'J·~ . t .. rc ·-_, r c 2.lso c:r r;:-· ·1izeC:. 1oC" l bonrc . .., i·: t.n' · re i 11'):"'\ rtP:lt. ()· ., , .. _:t i es 0:f 2P.c· state --:'ler e the

co110 ue >::.·f~iv'Le:!.tl)- ::>•;.d. c.•cc:lO j_c ~l ·,· :•sc:i t e o·:r t >.(' locel ·rTtA re· -rese:.te..tive . (**) ~ 1• e J,J c··l 1:.\· j:•.st -:::-.~- ·-0.?..rc'.s , .. e 1.· c :·, l e ct .c. -:.:1ci co:tstitute0. i.·". 0. L1Ct"'l'1_C·, i::.a.r t0 t,' C t~ l' ; <.'..1_ !:; t·JC'lt ~"~ne,r .". , e::cc··lt t he 

C~1;dr::1en ·-- e re [1_-,-·,ol.,_t of.. 'J·· "':.~~·'.:' St--te i" (· ct r) rS . I·~. 1::' -:;/ i ·1ste.:'lces t 116 

:,e':1Jer::i.1i··-~ ' '['S c"r a --·:1 ::'r(n ~e -,1~. Io ~.-, 1 co --:·JJ.i.::- .,.,_ c c -·:):o r ch; , but i::.-1. sucl1 

c::-se , on l :;- after E 1e ::.<' or 2.nC'. i· C:.l..S t, :~·" · .·;ron:n:; ::.a rl. ·"_-.;:""l. t ·.c..ir 8 1. 1-.0 - se-

:e"1ts. 1\lese "I..oc-ol :?-'.1 ;lr (~•. s. 1l' c". the s=' ., :\11ctin ,_ s, o·11.t -~ c~.·e :;e:1er<tlly 

subor ·-_i:J.:tt€ t. c: t1::..3 St.ll.te :So[1.rc;.s . 

r>.c na jorit-:r 0f thP. c '1€5 :r:c'!'E-.:··:-c:r". tc t~:e Ao.Just ··r·:!.t "Jcarr.s C0'1 -

Cel ::letl. viola io·1s of · ·p_::~es :··,_c;_ ho· ·~. s ... ·. :'. i ~ V2i ~' fF"' 1st~ ":J.ces '"'? ~ it 

f'e~.t ·1t cessP · to su·J:lit t r 2'•· 1)r :· t ·. e co :·l2 . ... intr-.. 1Pr f'ore , L1e 

l pr GE: r -r: :;r e~:. ta:~:e o ~ c<.s ,_. s · n ·-:; s C"'l t 0d 1a~· b c- c·.i 1.• i c~r-Ci. i 1 t 0 t 'le :

0 o J.lo,...,i ~:.~ 

t~TJGS : 

(':.~ .,.. .:._.3:'e t:1c. . T:'' J. :·i ;,:o.':. t ~-_, r r c-., ·, . ..,ndc1t ,-..,.s (_iss[.ti Efi ed. it 1 

t he fL1 ·i·:. 5s of tho ~<:-t · n:r ~i.:· e. . 

( '2_. -·>:=:tc t >.:: f i ;l '' ·-· ~:t: -~-~ fe J.t it ···cs .-v~_~ is :- e to S'..1.bmi t a 

C~ Se to t .. 1G ]O['..rO foi~ t~ .0 1)11.1' 0S : C. S'I,Vi 1·, F'. ifi·.:1~.lt f :::.ct·.1.e.l situ.atiOl:. or -(;n drter:·1i ::-.e ::- :1e thoC. J~~ <'r ,Jitr-ti ,::. . (***) 

('3 ) ··n-iG l.'e the co·m!i. ·1:;e c .. ··-F.i_ce:.· (j' Str,to :;:Jil· ect or felt that 

t~1e :9 :I ~10l0r icp_l effect O:f 2 ·. €·~- l'i·:_ .; 0 'f0r E' 2"1 ':-::a ::.·ti~l Joe> r•oul rl 

:e.cilitate .?i.j,~s · e;.1t . 

(4 , ~1er e ~.t --··s :i.'e~t ti.1e c:··. "~D.:::t o:. r 3stit 1..·tio·1 c'ue !:l t~ht ·oe 

rec'Ec ec'_ b e CPJ.'Se r::n: '•')eculir'lr C~" :('.i t i ... ~,. 'H ' oec...,u s e o·!:' L1e fiYl:"'::.cial i ·"'..-

:--oiJ. i t~· of ~1 e r· es·-yy;_(_e·:.t to :Y'.-.' IJEl.c' · .. , ,·en i:. fu l.J .• 

( ~) -~ _cr E' it ·-rE"s f e lt L . .:tt " .. e~::-i --1 ; ·o:: f0 -· . JC1'!C :=:o 2-r Cl. "'O~'J.cl 

str e::1GL1e::. t i.e ce.sG for its J.a.ter ::. ef· j:'~::--.ce t'l t ·lE.: ilY..,.rr·..,ric:.te orr-,lie 1ce 

C')u:::ci:'. o r u· i tee~. Stat c s ~ tOT'' e~ . 

·(*) 

(**) 

( * ~'* ) 

~8G l 

---- ----·----·------·-

Ioid. , p . l'l ; ser :=tJso ·1·:·t e f'"*~ 

I:1 ·r:?:A. St11.(ies ·:;G C~.:? l --:> .. iJi ~; --·.·.::· : 1/.a t .:. ·l .L · : ~ .... ., =r. 

·ro-::e t.l; t t 1e se t · ·0 _--s~rc 3 ..; " · ri.se0. (: 0 :: i. ,-~ 1,...1. 

:'oP.r6.s 1 f, _,_.,_ c'.:i ·r.s .•.s :.e.i ·-. •.: . .- .._ .;_·._ ::;,· 1 -,_ ti--:. ··,._ . 7 . 

of L1e 
-104:-

i ,.., !. e t j'-")E" S of CC' S 8 s .-: ~_ :_- _ ,~ Llc lN ( s . T>e cat er-;o :.~ ' ' le:1 tio·:ed 

i:~ uara:;;r cnl1 (4:), co T·:Jr o•:i se ~_:ses , f():._ "·. :ec .'"'. ::> :;: e )l;:i:ti ·~ 1 of t h e 

·•orl': , foJ_l_o··-,i:.,_ ; t he s~ --~::> G 0·::- :::;•i c JJ T-'ette··:- ~5 'Y'- Ju:::: e 1 '3 , lc '34 . In 

t he l att e r i ·1st:ruc -:.ir. ·u: i t --:c·.s ·)r'J-/i r:_rJr:. l-,~1 ct i·:. 2lJ. case s ...., 1.ere less 

tllc?.~1 ful l T€'stituti n·:. , _,_....s S0 _r 1JG t > e !"/just. le!lt D.ai t ~e ::1.---.-.)ro-.: eci.. b•' 

t l1e S t e.t e Ac". jn s t ".e·: t ::J" 2.r C .. (':< ) 

T?lC :;_ s:;P- .i- .,_ i:r_~; t ·-·o r-.c .. lr' it i oT ·'J t -·-·Y? s· 0:f cc-:.se s --•e:;_· e Plso i-,_cluC:.ec'. i:1 

J'i c~. IJc tt Gr }.25 i :•. C.efi :1Ll.-; t f-1'J r-;Ci ti 'J~'J. :-:>f ~1 8 3oar ''.s . It "Tc.s 

t l1e:re ste.t E.;e:_ t }12.t !J.ll cases ·h e': C0L:'. c'- ·y, t b e ::1.c'.just ed i-~ acco:..·ci.2::ce 

--i 1 t :.le 2.: :.~ c.s se t f0rth 1e1· 1 (*'* ) as •-reJ~ a.s C".ses L~ -.--· 1ic'1 there 

·:0.s •.ril~.e c'!::!.f}.i ct i·1. st a te!1e--1.t s of f a cts .J:J.0\1_ 1 0. be r e:':'erre0_ to the St P.te 

Ac j-u.sL1e::.Yc J oP.r d_. (** *) 

Thus, it is se ·.- n t hat t :K -..-._se of L :.8 .A.:i.j \.~_st en t 3oc:trc1.s e.s co:1t e:-1-

-.:Jl ated_ b y e~ Lett e r J. 23 covEj'c.;C_ ~ !nC l l .s.rg er :.111.:-.ber of c2 s es tha:1 

-r s ( escr-:·)c.-:_ b-: t }l c "i'i·; i ·,_a:l -):r•' Vi f" i o·"- '):':' ~, etiJ. -:: r ) , 7 . :.:: ~~ tl.te tir.1e 

the f i e l C. of::ices :v'.c'. e·:t e::.· er]. o·:. t 1e i'r t ;1i rcl.. st -:'.r:e 0f d.ev el :->r--;e~lt, i·1. 

Ju 1e, 1 <:? 34:, it hP,G. l)e e:1 c~.i.cc0ve :'e( th-"'~.t ~1e !l.te _\(just:le'lt :oC'rd l:ec::.r -

i:J.,Z S fo .·ne . ~.,_ :~ :Jo ::.· :.t ::J<='.i't of E~ n.C:. jl..,_ st ;e:2 t tech .1i ('"..,_e , 

There el' e t h r ee ~• f VC'.l x<.e s to tbe -ste': . A :1UD.~ :i.~ of tro--..o_b l eso:w S8S i:1 -~: 1ich t :.le fac t s ·--:;re SO JSCU:i. e 2.'3 t'l rJe e.l uost i: :'JOSS i ole 

of fin i t e _J r oof -. e~:e L··.ni ca ~' C.i ~; o -~: 6 of thr oEr:;':l heari·•.t; a---: o. 8.rJi tre.-

tio 1 by t :1e :30 a r r'!.s . 1c::.~~ ':'28 1u s e. -,J>ssica l :celief of the e::trene 

-oressur e of ,-,or1 : on the fie1. 0_ o:: ~· ic . I •1 ~1 e seconcl. -nl ace, 1e psych olo:-;ica.l effect of R l1e0.rL1g b efore 2.:·:1 i~ .- l.::: .rti l c{;;e:: c7 , rr~: os c ,.Je::1oors 

''ei,G -~ ::>rnt ' ·"'r O'-' "l ~-, +e ll" -'""' -r~ s "'-, 'L. "O:rt~ -1 + ·f . .-,nt0-' l· ~, ')<' l· ,r·l· -.-1.-· ::1 ,Q01!J+ · · - · .1. . .. . ! _ J.. _ v _ .... v __ l.. c:. , c . ..__ -· ·· _..J 1c.. ~. v- .C .1. ~ ! _ ·-_;> - :;, • ., -V 

t l".e ae-:.. j'\..l_stne:1t of ~_ ffic:u. lt ~ses . Ti1i s ·-·c?.s a ··Jo t e:1t i::.'lfh,_r:mce 0:'1. .,_e 

;2 L1i ~ o:C olu.nt c:tr~ r co ~~ li '1 Ce , ~9 8-:::tic- e. i :1 the c.:>.s o o~ s-mller 'J1>-

e::rato rs. ::::'hP.lJ_:,., ;.._ cr3rt .., i :. o~:C. li:~e ss ,.i::>.s i YJ.j c ct ed i·1 bn co n~ lia:1.c e 

•;:>ro c cdu re , a.YJ.d_ t::..e . ..,_ci:vi cc F-~1·~- :r-:; co· :· s·o.c .2.t-ion.s o :c :·)erso:ls :".·'l t o?:<"ic~.alJ_y 

-::o;1J. ect e el. ·· d. t~1 'T:1A :J.'l r s o ·"\ .::::,_c?.'.J }.e to :·- ov :: : :e·.1 t r..l re•",'L-._ l at i ():: s se:cvecl as 

a usefnl, e8.c'7 :".~ i·1f1l:_c.;-.,_ c e o:1 e \> velJ)'J',_e:-:.t of co ·~,J li 71Ce -,Jolici e s 

a:'.cJ. --'lr ac t ices . 

T118 o::i ';: ne.J. 1) c:-o vi si0118 o--lcei.~·j_-1 -; ~1e -_,_se nf St :-1.te Ac:.j".St"e.J.t 

3o::1 r cls ··ere sil e:'lt "S -':.o L le Y)j_'Oce -'ll_::re t o ce :':'ol '-0' i -1 -:; i-..._ :_e."' i-1. -~ S fi.:lO. 

as to L1e · 1c-.-l.·1er j_ ·J. -•}:i c'•. ccs8 s '·• e:ce to l.w· ":lr~· c--_tec'. . -~~ eve:::- , e:\:'")erie'1Ce i ·l. l'.ol ci·•-r; t l' es o ~v:: ari.-:: ~ ·~.o-- r::c: . t-~ e ·_:e c e s s i t•• ·o:f fo i- ~':,_::. ti~g son e 

strn .el. c?.rc'ts of ;:J:t act i c o . 'r 1o re fo , i --,_ ':li'C, cr the?~ ca s 0 s .. i ,!.1t be di sno sed 

of :o st e:~oocLi ti usl ." Ll8 folJ.o ni:'.'?; oFtli:1e -r:ls lai c:_ 'o..-~ -.. O~' Fi e l o_ !.,ettei, l.;=l5 "'·1ei ·oe-·1"r,.., l lr "o J'o ~""-~ ·:)"" ... ,.,e ~t ,. e r,.r- ices ( ***:::' \ '-...J ' c:.. - _) . - ... L . - ,j .L - . ... ..._,.\. J L l_ ....... . \.. ' 1. -· - • I 

---------------- ·--·--------·-------- ---· -------------- --

(* ) :'i l. <.". LettC"r J.2:s, , . S ; Sl l1Tole:-1 e-,. t. .-,.::: ·~ : e'J orC~.:.:.r"_n · · r-. • l (to 3ullet j:1 c-o . 7) -") . 4 . T>.is ---r~ r. ~lf')" 0VE.:r , .--.-,s r e;\ovecl. b:r :-:'i e ld Letter 

(** ) 

CQG l 

lS'4 . See C. sc\.,_ ~; io ;. o:: ·.)::.'oc odx.l'e :o r co · ro r0 ·· 1ise cases i·1 :1e::t 

s e ctio--L 

See s1.~ )r~. . --, ' . f-~ 26 

? iel( Le tt e r 123 , . ~~~ 

...,)'--_:·. 

5( 

ai 

., 

•. 

" 

i( 

Sl 

,, 

J! 

., 

.. 

~I 

~: 
., 

- JOuArrangements \er e mad for easEls to be hea.l'd D.Cc0r din,·· to a ~ixud 

cchedul e. :Both r esnonc nt and conpln.inants were invi t.( u. to be n· sent 

and. to bring their \/i tnesses, o·\: cept t hat wh er e deemed "' ">:uodi nt, the 

parti es rver e heard on diff r~Jnt cLays . 1he>re was .10 stru~::;tion a to 

the rul e to be fo llo1i ed i n sel e cting cases for nr e . .,ent.ation to tho :Board , 

the matter be ing 1 f t to the de t ermina tion of t he ·rticula office . 

A brief outline of eo ch case was usuall y viven oac: member prior to 

the hearing. Some offic s found it auva~ abeous to eq~ ir 0 the Fi Ell d 

Adjust er submitting t he case to pr epa re ~ com~rehensiv e report and ann.lysis of the f ile , both better to acquaint t he :Board with all facts in 

t he case ~d to minimi ze any t endency on the part of the staff to abuse 

t he :Boa rd's s ervices. Thi s l ast vvas e. l a ter devel opment and th e pr a ctice 

of r equiring such compr e 1 .nsive pr cpara.tion of the fil e was follo1i ed in 

only a few of the offices. In addition to the f a ctual outline men tioned 

above; the Field Adjust er or Ln.bor Complience Officer of t en ~ppea ed before the Board to Give additiona l r el evant information. 

Having become acquaint ed ith the gener al facts and the issues involved in a case, th e parties and their Tiitnesses wer e heard. He r e there 

wa s little uniformity. Some :Boards heard each party and. each witness 

separately, some allowed t he witness to t estify in each other's pr esence, 

but the majority followed both cours es, depending on th e conditions arising in particular cases. Witness es ordinarily did not t ost1fy under 

oath. No formal rules of evidence wer e followed , ltho1~h th e questioning was limited to pertinent issue s and was usually conduct ed by a member of the Board. 

Here it is important to note that each Board established its own 

rules of procedure, none of which was inflexibl e , for t he conduct of 

hearings. Meetings were more in the natLrre of conferences for arriving 

at the facts on which to ba se an adjustment, rather than in the character 

of trials. These hearin s wer e usua lly priva t e , a lthough Code Authority 

representatives were allowed to be present to off er advice. However, it 

~as within the discretion of the Eoard to make any hearing open to the 

public. (*) :But few public hearings we re held, ho~ever, and where used 

with care and discretion they were found to be of value in effecting adjustments. Their chief effectiveness lay in th e fear of publicity on 

the part of respondents. 

Decisions VTere r eached by the Boards usually in executive session 

i mmediately following the hearing . ~ile t echnically the decision had 

the force only of an advisory opinion to the State Director, as a practical matter these recommendations we re followed almost a matter of 

course except in a very small percentage of cases. Minutes of each 

meeting were kept by the Executive Secretary, although an exact transcript of the testimony was taken in only a very small number of cases. 

Reports submitted by fifty-one of the fifty-four Stat e Offices following the t ermination of compli ance activities show a consensus in favor of the Boards 1 usefulness a s part of the ad justment ~ach in ry, al-

(*) Field Letter 125, p. 34 ; Field Letter 160 (September l G, 1934 ), 

P• 4. 

9861 
though thei.r value nec e ss:-- rily varie d. a ccording to the individual ex:9 erienc e of each office . The calibe r of persor..nel DEI. S gene r a lly found to be 

the de t e rminine f a ctor t=.illd the grce,t er ca r 8 '\'7i th r:hich thu memb ershiu 

wa s chosen p erhap s acc011nts for the l a r ger success of Adjustment oa s 

ove;r Loca l Com~J li r.:, nce; Boa rds. 

On the b a sis of these ren orts from the State Offices it is £ stimated 

the,t 3,000 ca_ses were r eferred to· St a te and. Local Adjustmant Boa rds 

throughout the country. ( *) The number consid ered vc ied gr0atly from 

sta te to sta te, r::i th the l s rgest number, 451, b e ing heard by tha Ph ilade l phia, Pennsylv:::m.ia Stat e Adjustment ~S rd, v:-hich used three -.Ja n e ls of 

memb ers. · 

The coordina tion of the Boards 17i th tho comlJlianco -9rogrNI1 is '1eli 

illustre,ted by the sta tistics obta ine d f r om a rep r e sent a.tive s am1Jle of 

eight uen offices. (**) The se figur e s sho':'." the dis'?osition of cases handled by both Sta t e Pnd Local AdJustment Boa rds in the sta tes selected~ 

Practicall;;r all cle cisions nero unPnimous and but one al'ld one-half u c rcen't were o-rerruled by Sta.te Dire ctors. This is highly incl:ica tive of 

the close c oop e r a tion ex isting b e t '700n the Str.te Offices and the Boa rds. 

An an<:tlysis of the dis-,) osition of the 1,413 c E-..ses he.ndl ed by these 

eight een sets of Adjustment· Bo rds~ slightly l e s s thc"n half the tota l 

numb er considered, shows t he.t viol2 tions '.-rere found to exist in eighty 

-:9orcont of the c a s e s. On the other ancl fteen 2.nd one-half :percent 

were rejected ei th ~,; r for l a ck of evidence, on :~Josi ti ve finding of no 

violation, or bece.use the Boa rd f e lt it ha d no ju.riscUction. 3ut four 

and one-half -percent of the cases referred Here -~ cnding on l':~ay 27, 1935 

with i1o action having been t 8ken and the que stion of com:9liance unde cided. 

The sme1lne ss of the l~tter number is accounted for by the fact that the 

activity of the Bo<:1 .r<is decr e ased conside r c.".Jly in the suring of 1935, after the power to approve compromis es had b een removed by Fi ed.d Lette r 

194, and with the growth of the lJra ctice of dro11';>ing certain t;y-p_e s of 

cases by tho field offices. This 'li'T ill be discuss ed furthe r in the next 

section. 

The usefulness of Adjustment Boa rds as -part of the e.djustment technique is manifest ed by the l arge number of violations which were e ither 

adjusted in full or were settled on a compromise e1.rrangement. Of the 

1,126 cases in which violations were foun-d, fifty-five and one-ha lf :per 

cent were 2..d.just ed in accordance r:d th r egule::.r stcu1dards and eighteen and 

one-half percent '7ere compromis ed, a. tota l of seventy-four _ ercent. This 

number i s all the more striking when it is rememb e red tha t the cases referred to the Bo2..rds vre re the more difficult ones, ._,h e re "9revious attem})ts 

at s a tisfa ctory s e ttlement h pd f niled. 

(*) A tabl e showing the number of reported cas e s by St a te Offices is 

included in the appendices. For the purpose s of those sta tistics 

where a nUJ'1b er of comp l .:dnts ': e re h c.ndled e.s a single ca se, only 

one s been counted. 

(**) This t able is included in the a?pendice s. 
- 107 -

thoUGh their vo lue necessarily vo~icd accordin ~ t 0 t ' c individ~a l ~ e r -

i ence of each or f i ce . The c · l i be1· ol' p e r sonne l w:.ts c;uner nll f ound to 

b e t ne det e r mi 11ing f ac t or and. t ne ,;r en ter nre with whi h the membersh i p wc;.s ch o sen p erh p s .qc counts f or t he l nrg er success of Adju.,tmen t 

Board s ov er Loc a l Comp lion e Bo ards . 

On t he basis of t he e r eports from t i1e St a t e O~ ic s i t i s estima t ed 

that 3 , 000 c as e s e r er err ed t o St :-1t e <·4nd Lo e -el Ad j u t men t Board s 

t hrout.;,hou t the countr;.r. ( >i<) The numb er o:. .n si der ed vor ied gr eatly f r om 

st a te t o sta t e , with t he large st numb er, 451, be ing heard by t h e Ph iladelph ia, Fem sy lvani a Sta te Ad justment Bear d , wh ich u sed t hr ee p ane l s 

of memb e rs. 

Th e c oor di na tion of the Bo ards with t he com:n l i ::i1 c e p rogr am i s well 

illustra t ed by t h e sta ti c ti c s obtnined from · a repr esent a tive s ampl e of 

eighteen off ice . ( **) The s e fi g,-ure., snow the disposition of c as es 

handled b,l both St a te an d. Loc a l Ad justment ::-3 oards i n the states sel e cted. 

Practically all decisions were un mi ous and but one and one-ha lf per cent 

were overruled by State Directors. Th is is h i ghl ;r indicative of the clo s e 

coo p eration existing be t ween the St a t c Off i c e s at1cl. the :Joards • 

.fu1 anal;{si s of t he di sp o sit ion of the 1,413 c a ses handled by these 

eighteen sets of Ad.justment :So a r d.s, sli ght l~,r less then half the total 

number considered,. shows t ha t viol a tions were found to exist in eighty 

per cent of the c as e s . On the oth er hand fifteen and one-half per cent 

were rejected either f or lack of evidence, on a positive finding of no 

viol a tion, or because the Board felt it had no jurisdiction. But four 

and one-half per ce.nt of the cases r e ferred were p ending on May 27, 1935 

with no e.ction having been tak en and the question of compliance undecided. 

The SQallness of the latter nmnber is accounted for by the fact tha t the 

activity of the Boards decreased considerably in the sp ring of 1935, 

after the .power to approve compror.1i ses had been removed by Field Letter 

194, ru1d with the growth of · the pr actice of . dropp inb certain types of 

cases by the field offices. Ti1is will be discussed further in the next 

section. 

Tne usefulness of Adjustmen t 3oards as p art of the adjustment technique is manifested by the larg e number of violations which were either 

adjusted in full or wer~ settled on a comp romise arrang ement. Of the 

1, 126 cases in which violations wer e found, fift ~r-fi ve and one-ha lf per 

cent were adjusted in accordance with regul a r stan dards and eighteen and 

one-half per cent were co:npro;ni sed, a to tal of sevent r-four per cent. 

This number is all the more strikin6 when it is remembered that the cases 

referred to the Boards were the :nore d.ifficul t one s, where previous 

at temp ts at sati sfactor;-,r settlement h a d f a iled. 

(*) A table showing the nu.mber of -;- o~t d c a ses b:r State Offices is 

included in the e~dices. For the purp os e s 0f these statistics 

where a number of comp l a i n ts were h andled a s a sin le case, only one 

has oeen counted. 

(**) This table is includeC.. in t he ap:0 endices. 

9861 
It is see::. , t;.1e: .. ~efnre , ~:..:'l .. t L w j')p,rc-:__s ,J. 2~' c'. an i .-·-)ort a:'lt l)art i n 

c ·t ·' i- ~ c .. o· -". ·::~~1(' :·~u · )n r rL~ CP,Ses to 'be C0".S i c1e r ec 'b~ r Co :·?:ti 2ZlCe oF-~. s 

.r.') r ·- .-, l ·a·"' 1·-·sl· -:·-.., l·a '1/ ·"o r l l.tl· ··':l ti o·"' T'rl l' "' ~~"' ·• cl,,si o·1 is e·r0.e.- l. - - c;;..._ . . - .:)·· - c:. • - ~ .J- !.:..> • - - • • - - ~ """ . - -. L.- . 

si zecl. ·b=' e f ?.ct 2. t i··. :-;. r P:1 -·,e:tce:-lt o f t ... e v i olatio·'l. cases 

wc; :ce the ~o2rc":.s l...l .. "'.:".o J. e to :L' P?.ch 2.6. jus t ''lE:D t s . Of t he r enP..L,_c'Le r , I 1 v e 

''J8l'C8ilt of L l e Ct•.se s ·e:..~ e r".r o··me ri_ b e C::>:'J_ Se fu::o t he r a c tiOT.:l. ,-r:- s 'l.Ot d .. e e--·.eC. ·- . 

o.cJ.v i 8.~ e !:'~c. :-:' i v e ') c·:c c c;nt 1'er e C. i-: -; ---·le:'l' t he ::2Jar cts c ea.s e c1. to f r.:.:'lct io'J. . 

::::JnrL!.::; e cm..1 .. r s e l') f co ·Tnli e.:". ce a c tiv iti e s sry.e cliff.icult y ..,::>_s e-~

') e r i e;:. c eC:. i -.,_ :L :;, ,:J.:V~ -: "; r~ e e t i --'-.""S P.. t t i · -:e s -- -" l l T1 -= · :o e r s coL J. d .e1t t e:1f:.. , 

:t s --; l a cL:.-:::; a es :;.~ic tio 'l o :. t h e u s e ·Jf t -tle :Soarc'.s. This .tu2. 1 n 2.s 

SOT18 '7bat a llev iat ed ~· ,:;r c:nti'-1.-"'; t lle te Of? ic es auL ol~i · to a;'Y1!J i'J.t 

21t e r:::.ate s 0:1. ~o e~~ or 2C" , J S04 .(*) I t i s felt, · ho·-·e-v e r , ~1a t 1f' . ~: e 

r~ 1.G1.1. re of n.0..e c<.:C!.t e c o·r·)f"l. Sa.t i o·1 f o ~ th(' t i ;_;e con. su: :eel oee:::. ·)rcvi6 .. e<i ~1 e 

;~ -o ,_ of r> tten ~.· -?.:1 e ~0 1.· cl :'lP.ve 'oec-:1:'. ~e y .eli:1i-1e>.t e6.... At f1.T" :::- 2..te , 

t !1e e::··l eri e:,_ c e ~ t ::.o Co:--.-ol_i 2.?1 Ce ls o· i '1 ·t ~1.e n se o; St E'..t e Enf .. T .. ~. l 

Ad .. j u st ne:1 t :;oanis i s st rc:i [; " i •1cli i v e of L1e a <.' .. v a:1t 2<:es :. ~ l u e of 

l~ vi C .. l{~ 2 . i!.ethoc. of -~~)2. -...1 :1 c::- ~i :1 ;s . 

The s,~. .r ) c .. e cr e c:w e i "l t he ' '.8 8 of t 'o.P. c"L s n i t ).1 the Jr :l ~ of 19 35 

S·'·ro· · r' -r, ct " t ,, ,., .,,", 1 " · "' · ...., t -- J.. , oL' t i·1c 1·.,. 1 11 -~ "" a,..... 11 ...., L .1~ -· t e c. J.. 8 · eC:. .c .e ·,I , .C·l:· ..c ·, .. O ..l u l .. :~ ,·, t,_ l .. ·1. .:.; ·~ ~ '_ l. (:, ~:< . 1-' .... ~ 

e.CI .. :L~s e· :; Te.ss, a c r o--ri:'-C a.t t i tucle of o:Jl)Ositio::. o:". the p art of i ::1ciustry 

8)1C' .. t h e :-Juoli c, a:J.CI: r ev 6r s es L:1 tl1s coi.1r t s , 2.11 1e ;~1t cl oy t he '. --: 

of a:L~, 0.efi:1it e JJo li c i es of cti ~ o:"'. L .. e :r;:>art of T lA, so "t. is l1ee :i.~t ened 

t h e :10 r e con s ci e'1ti'ous '.len.'bers· of t he ::loarci_ s t h c..,.t littl e e11L 1u si a sm :7-"".S 

l eft to an~y o·1 't l".e wor'-. he ~. of:!:'ic e s , :-JCP.:J.'."!lli le , tt n~~ eci t .o 

S"".l vr-.c; e ':':lat t :1e·- COl.'..l r .. of t }Ie Cl .. eJ~ i or:- t i:".<'?; co rP-llir'.n c e si t uat i o· .. 1 'J•; 

su s;; e:;_c .. i ::.G ::-: ct i o:J. o·!. t :1!J se co o.e s r;b.i e ll ~le.cl_ O.e co:1e :':"or )rac t i c a l '!nr JO ses 

vi ;-. ll ' u --,_e:,lfO:t CA:->.:Jl e , i ·:. o':- c'1_c-; r t ':l c~ :1 En tr?.t e t i:-::- ef:Po rt s o:". r e tai :1-

'- f:~ t :1e :!..a.bor ·r-YJ.0. busi ·1 e s s st r nc .. :L ls 

1 De :' t t "' 1 • ,., "' .. , • -i . - r' .... t ~ . ~ C::o .,___ "' c: I OI 1_, c • .- _l :;;:eu. L1 . .. . J .. S .1 e~ . ·-- , .. ,. 

:12.tu:c e, l ef t littl e on fo r t ;_:e "J .. s e 

~"'~ li c·--" ::?.cl. ..:J e e~1 ;; ir~ eci. -i ~:. t :1e l 2.r .s;er, 

·C011.r se ·of a ct ion , t e:::,J E' i:1 i t s 

oi' t -1e A0 .. ju t··lc~l t J oa rCl .. s . Accorctb1[~ , b ;; ~ ~r , }_S:35 , ~mt fe'-' .!:'0 c" · '.-r ere O' ).t i:'lui -.-:; to fu:.:. c tion , t!1c a.ctivit:: of ~: :; e ' la j or :L +:- :;;- 1:w.vi:'1 -; e:·~p or c.. il :'· ce aseC:. . 

Se cti0'1 S - Co ·!r•lr•')·, ··i si :'l ··; l'\ _ c~ .r" -·Y·l ·: o:C' c.:>.se s . Pri e r t o J u::1e , 1:='34 , i t 

,_l i .a S ,D ee·-, _ s '·\ ' --r· ,· 

_ , ''0 . . S t .... 

A' 1 (,~_,- .L c'.. l S 0 ,'=' 

._ c.C~ '-~ , ~ D- st ·. ·' e-.. l ..... L ''-

1

• L• :'1(" ·. ·)ee ' ·. 

1·· c.\L "'~ ) t• e·' \. -b,,-- +v }1e Co··lli ai.l e Di vi.si cn: , 2.1 h.·w. ;: 1 s-J ·1e \~_e lo ' ;;::::l't CJ.lOil .:S i s l i.;,:. e :1aG. ·o e e:1 ·i n -

i t i a ted th:;.·ou .. ;ll L1e e~::- ;c e: e of i·'l<i i v i t_,,_,-,_1 f.i e l d of:"'ices. ~ ol~ over . 

d.uri·:. -::; t ;"ce ' Rj c r ')[1.rt 'if t h e ·sev r:- n. P:".t' . . ~ 1..0 - lm.l f ;o:1t l1 s )r eC:: .. i·1 ~ ?i e>.l d 

Le t-t'el' 1 -·-s v e:r·r l it t l e er.r:)ll8.sis '".!'.S ~"- ::n t~le ''!2.' :i nr; of -r e stitutio·::. 

l~ 'lRSt vi ol r'.tio:l·S i ·,_ the c:.clj''.,_st :-l ent ~ c ::>.s e s . ---:1il e ~l <" "Jo li c:r of 

al .. j u s L 1.e:1t o;1 t l1e b asi s of a ssu:ran_ c e o:f f u t u re co :r~ "9l E1:•. ce 0'1J..Y '~!c; s soon 

r e co ,',;1 i ~~ ec'. "u•- co: r-11 i 8.:1 c e .o f:-:' i c i .:;.1 s 8.8 1.r~ s ., t i s::' P.c t or -, t i1e ( ev -e l 07)"1e·:.. t of 

cle fi ·1it e st r>:.lc .. a r (:_s of i'.CJ.juc t _,e;1t ,--as e:~ t to b e s:. .. lJE\0.. b y t~1e C.ail:' e::-

. ueri en. c es of rso ~ i:1. t i10 f i e l o. '-:r:1o ·· ... e~e e>.ctl.v.ll: J. ~'f!.":eC· .. i !'. C:.. li Y~ 

t~ co d e v i oi a ti0ns.( ** ) 

( * ) l r>") -'•· \..J '.J . 

( * * ) T:1.10 c'.cv e l o·;:'.e·"l t ~ .t ~1e "' .a:.. (l_ s 8:1C.. T.JO l i c:l of ~.c .. jnst ! :e:1 t · :12s 

beea c" .i s cu ssed Sl.nra, c:lc'.1Jt e r I II, 1') ~ 1 5- .'::l3 

9861 

:• 

' .. 

' 

I'" 

1. 
-109-

During this period mF~ny coP1p l i.ints ,,., ere a. JUsted. ,, :ithout any payment of back nages at a ll, or wi t h r e stitution only to the complaina nt 

in a sum determined by conf erence \ ith both parti es. Thus , it vas common for wage cla ims to be compromised by egrcement bet.'.Jecn the cor:1p l o.ining employee and t he r esponde?n t, oiten a t · onl3r e;, siilall f raction of the 

full amount a lleged to be due . This was a natural r esult of the la.ck 

of definite standards, the absence of an adequate adjustment steff, and 

the restrictions placed on the irn·9roverne:1 t of .:ompliance technique by 

strict adhe r ence to the:; 'l!rinci ple that a ll ~r eed i ngs h c..1 d to he· initiated 

by the filing of a formal complaint by s omeone presuma.bly acquc,inted with 

the facts. ~E or oove r, :Bull e tin No. 7 provided t ha t arb itration was a 

proper means of adjustment . (*) 

This p roblem was much more a cute in case s involv i n:.; l abor violations 

than in those concerning tracie pr actice since in the 1 .. tter typ e it was 

generally i mpr a cticable to include restitution ~s a ea t~re of adjust men t. 

The r easons fo r this alr eady h .:; v e been briefl y stat ed e.n<i wi ll be shown 

further in the subsequent discussion on outstanding proJl ems in the 

handling of tra d e p r actice complaints. 

I'fnally, on June 13 , 1934 , t h e Comp lianc e Division a cted to end 

this unsatisfactOI"'J condition in the compliance p r a ctices of the field 

offices. At that time ther e was issued a compl a int mu.nua.l, a tta.ched to 

Field Letter 125. It contained instructions on the ~J ro:~J er handling of 

labor complaints and promulgated standards of .::..djustment, based on experienc e s in the fi e ld and comp iled ge ly from the obs er vati ons and 

knor1l edge of the travelling F i eld Representa tives. 

In setting up guides to b e foll o~ed in adjusting case s, Fi eld Le tter 125 recognized that the p r a ctical aspects of "code administration 

for compliancell required some elasticity in those standards for unusual 

cas e s. According ly, it was p rovided that qhere there was a qu estion a s 

to the financial ability of the resp ondent to make full r estitution, or 

~he e the payment of an overtime r a te constituted a har~ship, or ~h ere 

other circumstances sugge st ed an exception from the general rul e , t he 

case should be referred to the St a t e Adjustment Boa r d for decision as 

to nhether a comp romis e settl ement ought to be a cce:9 ted. (** )' The chi ef 

r ee.son for this procedure was stated to b e that t he aim was to obta in 

as nearly as possible the full an10un t due t he em~J loye . It was stated 

that a compromise was some times ne cessary to prevent t he employee from 

r eceiv ing even less or nothing at all. (***) This p rovision nas r e iterated e.nd made the exclusive p rocedure for compromising cases by SuplJl ementary Mer.nrandum No . l, issued with Fi el d Letter 125 . (** ** ) 

( *) Bulletin No. 7, p . 15. 

(**) Field Le tte r 125 , pp . 4 ,5. 

(***) Ibid, p . 4 . 

(****) Suppl ementary iiAemo. No. 1, pp. 4 , 7. This rras a lso · r epeated in 

Field Lett e r 143, p . 1. 
.... 110-

Tl1e ,-, :;_·o cc;;::: ul'e ;:;.-vGc : ~i c. e-':. te:t 1 '"3 5 <::.11ci. Su]~l leJentp:cy 

:.:e!clO I'( ::.C:.un l~o . 1 '\.~~ c lose l y fo:'..lr:>· E.' ·· b, th ~; ~'v -2 Off i ::e s ir.. £" 11 C:1S:'<:' 

'"he :a ::>,c.j-;:tst ·1 ei1 t '.''as so·:lt;ht -~ 1 :; s~ than the full ruJOl..m t ':7hich hac. bE; en 

:.e fin~ ce de e:;_~rfl in ei t c ·oe . -c-.:.: . ·l 1!'.e. -c c ~~ rs , ho··-·eve r, a Jar:-;e :".u.nbe r 

of ce.s e s ir.. which the : cJ..cts , e, ::_~ ~~ c: 1:.: e ;::.n cL in '.::.1ich COl!flic-G in,: s t n.temen .. . t c b,- cm-n loy ·'e s ~n·.:J -~ s- l""l(·,., nt · ·· c· e l'l. (.~ l· .-:-. lt to c"P.te~J._!} l'n p t :le . ...;. U l-l _~.J t.. C• U_ J., \: , \.., )...., - 1

· . • ;:.• • · \- • - lJ 1 

• ..:... .1_ ._, - v ......, • 

o.eg:i~ee of vi0Ls.tiOl1 n i th c:;,CC -~ rG" .. .:Jr• I n ~Cll c a::;es it '.'JC:,S the :::>:.. c-.ct ice 

for the f i e l 6. ofi'ic e s to al~ -~i ve at the a:1oUl~ t of :;_~ st it-:.J.tior~ ·by ·1o .... :inc 

an .s.To itl"a ry decisiorr on tb.e fa·.;ts , ':7h ich usua lJ.;-- epl~ csGntcG. a con -

p ro:.Ji se be t1.·:·.3c-n the s t r .. t ensn t ; --Lc·e sc·il t e:i uy the co ·:~9 lo. inGn t an C._ t11e 

r e s•;C::J.c:_cn t. 

The llne of r" st -~ ction bet'::r ~J n t hc-:;e t· :o -.lass e c of cases .i s t h in. 

'.7he :t 3 t he ~J :OU.i~t o: r est it-\_l_tinn. h a('_ 1:e-.-n (.G t e r;J_inecl but it Hc~. S C.esir;:_ 

to c::.c::s~ t a l esse:,: .:u~ n:u."!t '..: c c<'us,;·- o£' the :- e~>:1oncen t' s inability to ~ay 

in f' lJl 7-he e""'"" "'8 " ~"" 0 

"- - , .~ J- . -.,(.A, ~;.·; . <-• · ...... "':" ..L ·~ ~ ...... c..1 ~··a . . , .,., ..'-·o· ·-.:.-' . ·.l~o ..·l. l· s~v ' ~.L ., .. ;: ..... . •_ ·er" .._,.. r .,,d .L .._, to the - St ~t. ,..,te 

A6.ju :-~t -- :en t Ti oa.rC: .• (~) · Ii, l1 o·-re ve·r , the ce.·"' e ·::::: one ,-·here the 

evE.enc .S ,-ra::-.. ~_, n;L li ct_L~p: __ ap.~l _i ~l ~_o~ :.; )::..~ -.§- y_e.! .. so [ .. t it ~ .. _as_ n.ec es_s_a~~r 

to l:lake an ar-bitrary finc"!_hlg of fact ,,;r;:, ich attenp tec. to partially 

:re c oncil e the two opp o sin g stories of the C0'1~J inant and the r esp ond.ent , it rras not c"L a ssifi :.:.d as .. -. ~ c.>Y:· -,:!.'O:.: :.~;c anc"!_ r e f e rence to the 

St a t o AC.j u c tmen t :Soard ·nas mac e unnc ce s sa:;:y. :r e l atter ty:Je usually 

invol ve(_ sr,lall o.m:rl oye::.·s who kep t . litt l e o:r no recon".s, ano. co ~nr i-- oc. 

a su·o:stantial J'1 ~o rti n of the co . .1n l aints hancll ecl o~r -t.he Co: :plir..n.:e 

Jivi.si on . Such cas e r. ':re re sor::etime s fe :~:re ~_ to Str •. te Adjust:·1ent 

:B ::. c!_s , 'ln.J.t on ly f or assi stance in ( et 'J lTL:.n .g .~ f ac ts. 

The ~) ~:-oc eC..u:·e creat eo. by l'iel cl. Le tt.8:>:' 1 25 and Suppl er1el1tary 

l'e-lo-""''1l-,-'lJ __ l . 1 . . L · .i t: _,_ L •• l'-o . e l e-1r--~ .'. C: .. • ~J."' '-"' \... Q- · i

-.J. '1 .

·"e l vU ~-~- ,--1 ..._._,_ +-~l u..l. U Tanu- •n•~~- c.;.o.. ... tf 1un , 1°3:::. _;;J V . On t'n- \.\O.-, t V . 

d.n ~ t h ere V!as is~.o e.cl ? i e l ( Le t t P:r _~:4 , '.:hich 0 ivest e c_ the Sk't<J A:.'_-

justmcnt . JJoards of the ir 'L ::.~ -;( .::.t on to "'-p..-cov ~ c r:> '·!-_WOr'. i s e.s , snd. 

plac.ed the s ole powe l' to a·· ... ho l~ i ze this ~o-;;e o: <·.d.just -·18n t in the 

Regi.':>na:!. D).re.::.to:r . 

The n e1.· instru c'· ior:.s f:.t r:'· v: ~h e --~oJ.. c~- o:i:' the r: -- :~ lio.nce : ivisiOi1 

to be riot t o consic":.e:i." iol r· or~s ::-·_~ust ·...;," \Jll n:s full J.·est i tuti:m to 

a ll c··-.; l c-ire··· s ' '" " 1'·1a·"'e l.'l · "'C·,.-l. +l. "'n - t· o cp r· -~l· n.r· J-~e .-. c-. 1t C0'"""' 1 irnce (* * ) -· . _ -- (/ V C:4• ~_. • .., \... J . l (. .. - · v \,.J>_ "-' ... ., -..J\...L.l -~·· . . l. 0\:.- -lJ .J... C.-~-- • 

The cJ."Ll.c i ve procec:<..:.:;_ne to e :;:~ol :l.o '::ec' in C'. epa:rt·tlj~ -, s fror.~ this ~;o ! ic~ 

' ,7.·"'·c' ,_ , ...,__ .co,, ·_:"oll_,_o ,··c_ .•. (***J' , 'T' · .• J l"'v '"..:. '-J ~ .L. l~">J~ c· . c ·~ ,., . t...:... ,.~·,.. '-'""" --. n . ".L. 'l"C.:.:

....~.. -·-

'Q<"!'. .. • L.,.._.;al 1.J ..L .L. Cl,.u... .-- rl)__ .l.· - st·· ,e,~'· - .1 "' v · c ,-,"'t-~ . '6'- .._...,. ~,, 

,_lt~-u :. ~c( . to hc:..nCcl e. l abo::- TT, i~ts .n C. its vie \''S on the settJ.c:nent 

a (;:;_1e Gc- ,,-;i th tlle State Dir ec tor' s , tho l at t.e r s oulo. c lo s e the c , se on 

t he --_ yto ·-~ se ':'..s is~ A s~.-u ~; :t."'.l"Y s~ J. te·1en t of the CO !'~J_: o- i~.e 2n ~- the 

r eason s the:.:·efore l1ac. t o oc s en t t o t l}.o ~oo :;_· c". inat ing :;.'....._nch , 1·i th a 

JY to the P.eg i onal DL:ector. ·r; el e the i::J.d.u stri a l C:: ust '.1 ent c~e:1c~r 

a'1C:_ the St o.te · :ui -..~ ec tor fail eci to p, :cce , or , h e :ce tl).el~e ,-·as n o such 

( *) The p r ocedure b efoTe t he ~- ·:~.:: c'_ hD t· been 'L:~o :_.._.: u' L: t~1e ~, ):;:-ecec. in_; 

sect i on . The mJITlb e r of such c o., c-e s is in .i '--- ted i n a t able in t:1e 

}l~;e;n.ci ic es , note foot:10t c ll • 10~ sup ra. 

(**) Fi e l f Le t ter 1 94 , p . 2 . 

(** *) I"qi d ., p . ~- . lis p ro ceclure !2-~> r e}IO;-\tec. i :1 Ofi i.:e : .annuc-.1, 

III-4-113 . 23 . 

9851 

L ., ..,) \ 
- J. -:.1-

''.;.:nc~· , the. :tile ··it>l n .--,·c1 ~ ·~~ , 01~ · ~£' se <me" ·chr· ·.:-e c-ons for the 

co :·>ro i .:.e :,~ CvTl enc' ...... t ion in ~ LL• lh: ·t0 h <. to :. e ~;en t to the Reu iona l 

Director. 

Tl1e ::ee;ionn.l :;:)iructor the 1 r cvi o· ·eel t~1 e fil e , J."e fe rring it to the 

!les ioaa l Con~1 li unce C01.mci l f or r c..c o •. ~· ~e ndationr. an( he a:~ing rri thin 

his c:.i screti on . His cl. ci c- i on •:. as the final NRA a c t i on except in those 

cn.ses involving consir.ern.ti or:s of jo r }Jolicy or c~ cst ions a ffect i ng 

in c~·r:.c-try mb s ill other r egi n s , i f1 •.1hi ch event t he case was trn.nsmitteC:. t o Washington f or dispositi on . If t he Regional Director approved. the conp ro 1i se the summary :prC}Ja:cec'. by the s t;.t e Off ic e nas 

se~1t to the Coordinating Br anch ·.rith com ~e nts . (*) 

Al thou5h the ins:.ructions of L'i c ld. Let te r 194 •w r e expli c it i n 

stat inc tl:at a l l <.~ses adjust er'. fo r l os::; than full r estitution had to 

be a· J:r;-> :i."Ov d. in ac co r C.£mc ':: ryi t!:-1 the ·· ~:r·oc ou:;. e ·,Jrovi 0.e0. therein , actually 

fe n cu.ses '·ere so han0.l eC:.. .A:.l Dn2 l~rs i s of State Offic e case fil es 

disclosec. that but 44 co•1•Jl a ints , .. l :r·o ref rj~ed to rt. ~- ion.al DL~ector s 

for ap:p roval of coro~p ro se adjustr1ents cl.uring the four months follo•.ring 

the issuance of these instructi')n:3 . (**) IJhil e a llo,:rances for error 

ma;r :ol acc t h i s nUDb e r slightl y h i cLe r, n ove rthel e "s the number is 

signifi c'an t . 

A partial clue to the srla}_l nuui.1e r of co ro: :ise · case s app roved 

by Reg iona l J ir6ctors is the follo Tiing extract from a l e tter to the 

PhiJ: a(e ~•) liia Office b;y the Chi ef of the Coordinating Branch , 

11 The pro~·Josed ad.just:JEJnt n ee d. not be submitted. to the Ret;ionnl 

Di rector in cas e s nhich have been subn i ttec_ to the State c~justment 

. Board. because of the cL ifficnl t~r in. est a'blishing the facts. The tJ3)e 

of cases '.-·hich should be sent to '.: a.sl~ int; to n a:L e those in '.7hi ch a COFlpromise has been mo.de on t!'le ano:.Lt C::.1.1. 11 (** ) 

Th is clistinc tion in t _ e C.e fin i ti on Cf c on-,Jro;: i sc c o..ses 1.1as recognizee:.. in t he fi el c:i.. 1.m6er t he i n st:.:uctio·1s i ssue d. i n Fi e l d Letter 125. 

It is mentioned he re azain cecaus.e: :· lc--:..'l.y of the off i ce s , to avoid fo l l0\7-

ing the proc e dure p rovic1.5d ~r :;?i eJ c~ :!>Vee r l9ti: , p r efe rred. t o treat cases 

( * ) Several e::a.m•)le s of su· r.1a ~:i .- c- of co····p:r_'on i se case s ap:;!-roveC:. in 

acco:;.·C..ance Tii th thi s ;·Jl~ c.c c_l,_::e la e b1-;en incluc:'.e0_ in the )~JenC. ices 

t o illustra te more cl early- the .1e cls u sed. ancl types of ca s e s in 

'.--:-h i ch co:·~ :i.' O -.i scs 'Jere :ceuJ:-1•1ei.1Led. i':ote t hc.,t f inencial innbilit:r 

· T s o ft,en cou:;} l ec3. ·.ri th so::1e othe r r eason fo r :c ec~ uci g the aL10'W1 t 

of r estitution. 

( **) See . t aoJ.e in Et~J )enc ic e s. 

(**~)In l~I.:A Stn6.i es ... s-.1eci a l :=:::.hi b its ':'To r}: ateTiP s t . 5 

9861 
-112-

as compron"ii sec1 on the fac ts rathe:t t han on the a r:10unt. T_"li s oc~C c1re , 

~e th r Yl ith t he s t :::>.iH1 ",lc' s <:~ tP~ i n :B lel ~ ettt r i -:12 , -:,erE; c1 er>.r1y d_ t=;-

si::;n e .. ~ to r a ise tho :1.~ i t y of adjustments i n t l1e fi e l d. Although t"he . 

ur 1ose of int ended p r ogrsss i n r a isiLs t he s t <. ·.ndc-,rds of v10 r:c and il1 

em-ohasi zir:.c:; full r estitution f e r E.~. t vi ti 'J s v;as l au o.{3:o l.e, -it f a il ed. 

of fulfillme:r:t bece.us;; t he compli:.'.nce stru::::: ture ;>..lready .h3.cl be c ome t oo 

gr eatly under mi n ed by tllf' r factors , such as the ch<.ln c.:;e L 1 pub lie o::;inion, 

t h e l ack of a c l ear enfo r cemen t ~'Jo li c;y_ , c:md. int e rna l or[';a:ni za tio n 

difficulti e s in the NhA. 

Cl osel y r e l ated to tne como:.--omise c. f cc..ses , a nother )r ac tice 

cievel opecl out of t he ex i c;enc i es of tl1e situation for reli eving the :o re ssure 

of wa r:.;:: vrc.s the drop•_::Jing uf c?..se.s. S:l:is o:ci ginally a.ros e in co nnection 

vrith the service trades , whe r e the l ar.;e lUl~'1e of cmn laints and the inde t e r minat e sta tus o f 1e coc'.es f o llov'lins t h eir •)c-,rtial suspensi on ( *) 

made t he -.,rob l em acu te . 

It has been shovm in t he earli er sec tions of this chapter thc;tt 

the p l a n o f pro cedure :,q ov ~ecl by Bull etin. :No . 7 e..ricl t he inadequate fac iliti es fo r h a nd.lirig c ompl a ints in the fie ld. bad r esult e d in concestion and. 

a aC:~ l p iling up of wo r k in the St ate Offi c e s . The similar 'situation 

which ese n ted itself in Washington s e rved t o eJ:l]?ha.si ze the ~o o b l ei;'l . 

Some i {ea of the magnitude o f the bu~ den 0f m~l ints on hand, ma ny ·of 

them entir e ly untouched by the e.djustme11t :~ oc eclure, i s discl osed by the 

peri oc!_ice,l statistic2.l reports of t he f i el d offices t o fTasl1inr=: t on. 

The se shovt tha ~ aoou t t he t i me Fiel c~ Le tt e r 1 25 'IV['.S issu ed over 15, ·oo 

l abor om~o ints and sl i ghtl y l ess t han 2 , 0C-J ... tr a~e p r acti ce cases i7er.e 

penc:int; i~ the va rious f i e ld offices. ( '~ *) Th ~s e ~res gren e'en l e.r .:;er 

in .t l1e mnn t hs that f ollowed, :partly ·oecau s o or' t he s tandards of a djustment f or l abo r cases cre a t e d. by E'i e l d et r 125 , :partl;r oec.ause the incr eased u se of Fi e ld Ad,jus ter s t en d.Gci to s ti:-nul a te the f iling of cou:)L'.in ts, 

and f or a va riety of o t:ilfT r e.:_tsc n s .. 

The p i c tur e th0 t presented d.tself, t h en, was f i e l d organiza ti on 

staffed without a suffi c i ent . number of Fi e ld Adjll.s ters, with no ex_perience 

a nd vri th littl e chc:mce i'rr tra i ning 1 v:h ich was chc:.r g ed u i t h the eno l':Jous 

t as}c of acli:J.i ni stering the t.Jr ovi si on s 0 f 55h codes coveri ng 2 , 500 , 000 

en]:::>lo.ye., s . ~~) Thi s i s emphasi zed ·by the fac t that man;i' 'f'i l d. )eopl e 

in terJJr e t ed t he d.u ty o f o b t a i n int; cortl:Jl i a n ce as incl ucling a ~o si ti v e 

obl~ c.:;a tion to t a :ice the i n itiati ve i n s eo..r i.1ing out E.'.ncl correcting 

v i oJ. ati oi:s , r athe r t han vraitLF: rc r c ompl a ints t o be f on-:1ally filed. 

This vras t he di scouracinr. ) i ct-nr e of t he fi e h 1 offices 1 ~ i tua tion in 

the ea1·l ;y surmne r of l S3L.k. In the su ccer di ng 1,10nths, as . t l1e )erso1mel became ex.)eri enc ecL and n ew -)osi t i o ns '.'rel· e ad _eel an(;_ E.'.s 10o.s and tec·n::iones 

be ca1.1e nore i1early perf e c"t ESC.::., t ile o'..lt l ook ·bec~e bri [ ht e r. ::iowever·, lintil 

t he cl ose of comp liance activiti e s t he Sl)ect er of a l a r [e vohm1e o f unadjust ed and unt ouched. cas <Js r emai n ed .• 

(** ) See st e.tis ti cal re1 or t fr om f ield offices, f il es of ~rcU na tL1 .:.; l ranch , 

f i e ld Divi si on . 

~***) S ee Su1Jr a p . 2 . 
- 113-

It is e.. n;.nifcst tr t'l1 t' a t :o onerous a 1nrrclen Yr['c: bound t o hinder 

the ef~icic_ C'J of the vo.: "'l L .ncC' ·;·~.· izati rm . '.1'~ i s rer:tricti on on the 

field offi C('£ '·.rnr.. ~~t;ce ntu:1t c.;. 'by the t;h !'\.I ~.G t ::: of .1. l :n?.:c :9ronortion of 

the cor.11Jl e.i!1 t • . s·,'.b stan tial ~)[1 rt ..: oncerneCl t he retai 1 anU. c· c- rvi cc tr .dP" , 

~'lhich , nlthouc;h ~e L .. n·.url'oc-r of estall li }1l.1Pnts ant'. rnnloye e"' , .,,..r e 

ma.clo u .. , of many small units uhi ch \'18:.. e ~r::t(.;t c:lll '.~ ' 1./l'):..' . ·:.;.2~ized . Ma.ny 

'J.ch enterprises were submargina l in cho.r::1ct er , vt e r c ·Joo rly mc.nu.ce d , D.nc: 

fen nD.cl r.(ef'_uate r oco r d.s . Although in livi dua l ca.se s 1ere unim·Jortant, 

each required a di pro, ortiol a tcly l a r &:c am; unt of t he Fi el d Ad ju ter ' r 

tine . irtually ('VCry p r a .ti n.l :problem of vOffil')lia nce vra s p r c c: ent in 

their }'lanc.linc;, the lac~: of a ny r t'ru·o nablo gr qund for federal jurisc· i c tion, 

:: cor:r9c:..,·atively l ovt ordC'r of intellit,ence c:uno "~ g both er:rployers <:1nd vror~: , 

t' e .:~o~ ·l1c o of adequate employment records , and their smallness end generally 

poor financial condition. 

In dealing •:ith t l: i::> t ype of empl oy er, case s at;r:.;.in "" t Hhich co n stitut ec.l the b llk of the back- br ea\:i n.:;: load of '\.ill3.C ·Usteci compl v.ints , two 

cours es v:r- .·e 01!en • One ~1ad been i. tLicE". tec ·oJ the Pr esi den t in Bull e tin 

:c . l a"' c:. u. c a-;,·at i on of the po li c::• to be f ol l ov1ecL: 

11 In mJ i nau [;r ,:!.l I lai c.i. clm-.r.r.. tr e si m)l e propo sition that no body 

i s ,oi~g t o starr . in tr:is country . It seems to be equally pl ai n that no 

business vrhi ch d.e:)ends for P.Xi stenc e on ::_;ayi nc l ess tha n living 'aac;es t o 

its v:or~;:er<> has c.. ~1:. ri[):t t o c onti:1ue in this country. By ' busine ss ' 

I mean the vrbo l e ttf comme~~ce <:.s r?ell ac: t he d10 l e of indust r y ; by v10 ~<:e :::-s 

I mean all uo l~e s - the whi t e co l lar c l ass as ~e ll a s t he men in over a lls ; 

a.nd by liv ini ua~es I nean mo r e than a b a re stib s ist en c e l ev e l - I mean t he 

·.1c>.t es of c.le cent living. 11 (*) 

In spite f the cl earne ss of t h i s sta t ement of ro li cy it was not 

fell o·reC., nor vra s t here ano the r --vJli cr aC:.optec: t o a~;: e it ~ ~J ace . Instead, 

c:ts a ( i l·e c t out gr c:1 t h of the c orrnl "> ints nlan of :;.J ocec~ur , ac tion '!8-S 

t a·;:en only against those members of industry Y!illing t o adjust their 

vi olations a nd a gainst laTger o:oerc.tor s , whi l e cases a gainst mem'bA rs of 

the se retD.il and sGrvice t ralt.e s, wno r efu£ed to coop e r a t e or v.rho rre re 

fi n.:mc i a lly unable to co:-::1:ol y , '.'.'e:::' e d.r iJ~-Jec· . 

Th is dr op)ing of cases was -p ri~ narily a field p r ac tic e , designed , 

ho1ever, to ri d t h e adjustment staffs of the usel eEs burde n of unadjusted 

com:pl G.ints , on which lega l enfor cemen t s t eDs coul d. not b e maintai n ed. . (** ) 

7-here fore, pen( ing c~ ::~ tion of t he uo lic,:/ t o be f()llo v1ed ni th 

respect to the i ndu stri es menti o:1ccl, Y!hi ch vrv.~· no t wi t h i n the povter of the 

om~liancc Divisi on , it urocee~ed t o mee t t he situa tion as b es t it coul d , 

and at the same time to force tne i ssue. 

{*)~~B·u:iie-t r{ 1·'c·: ~ {;tC:t ~~e ~t .b.y .the. ·e·s-ld -~t- ;u:t{· in:i r{g .1TRA p; -c· -~s)

p. l , Office l:Ianual V- B-1. 

(** )For exainyle, see ca.se against J:iann Ove rall Co., El Paso, Texas , 

Nati onal Comp liance Board minutes, Ap ril 2, 1934 . 
-114-

Acco:::_" (:i nc;ly, on August Ll , 1934 the Sta.te offices vrer e instru c t ed t h a t 

cas e s of v i ol a tion in the servi ce tr2.des vrher e the respondent had no NBA 

insi gnin t o be orclcred r emov e d_ need_ not be sent t o Washingt on. ( * ) 

Such cc-·.s es vrere r eport ecl as .·

11 3.eferr e0_ to Compliance p ivisi on 11 , vrith a 

s=0eci a l notation, and the files we re close~ _and r e.tained in the State 

Offi ce . Th i s vms f ollowed on September . 4 1 1934 by a p r ocedure f 0r dro:0ping 

complaints against smail establishments vn1i ch r e fused to c omDl y , vrher e 

the viol a ti nns were :10 t ir.1portan t becaus e of S})eci a l c ircus tances. ( *':' } 

It vra -; felt tha t if such comp l a ints were all ov1 ed to r .emaii1 i n the fil es· 

una djust e d they v1er e a c onsta nt source of irritation anc~ uricel~tainty of 

p r oc edur e , a n d co nstituted. a · r eal mental hazard t o mor e iJ:mortant a-:1_-

_i us tE1en t v10 rk. 

The Stat e Off ic ~s we re ins tru ct ed t o segrega te these cases in e 

sp-ec i a l S\.J_s:;_)ense fil e to he exar:t inec~ iJy the iBA Field ~ep re serita ti v e s ·~1h o 

n oul d 8.u t h ori ze t bem to be -::>ped . :F'ol" 2.1 1 pr a ct i cal purpos e s , ho .-,ev er, 

the C'1.se s VJ e::"'e t r ea.t ed as drop-oeC.. ''then Dl e.c e d. i n. t h e suspense f il e , si::1ce - ..J. - • 

the Fiel ( ?.e~ sen ives v1e re accus~or iec: t o rel 7 u:-;>on the j ucl o::1ent of the 

particular State Offic e , unle ss rnanifPstly Frong . The re were no instructions governing no tifica tion to m:.1 ~1a ts and es~Jo ndents t h at cases 

hac_ ·oeen c:.ro:' } ec: .. a ncl p r a c tic es in this r es1Jec t va ried. greatl y with i neli vidue.l offic e s. This p rocedure continued to be followed, a lthough it 

vms ha1n~Je ed somev1h a t by the small numb e!' of Fi e ld_ Rep r e sentatives and 

the con sequent infrequency vii th which they were able to visit _all State 

Office s . ' Since the 'instructions jus t mentioned wer e i ssued in connecti on 

with s f'rvice tre.des compl a ints , it was f ound necessary l ater t o make it 

cl ear that the ~J roc edur e ~~ li ed to a ll ol d u nadjusted complaints.(**~) 

It v1as a natural step fr om the p rocedure f or clr op:')ing old, una<.'..lusted cases, to 'attem]J t t o devise co;1e mean s f or . eliminating n ev1 cor:rplaints 

of t he so.me t ype . The Fi e l d e~ esen tiv s instruct ed t he various Sta te 

Offic e s no t to docke t new service t:cac1.e comjJlaints unl ess t hey appee.r e d on 

the ir f a c e t o ·bEl important. The Sta te Office s a l so made u se of a supp l ell1ent ar:r er.1}'H oye e Is s tatex:J.ent on vrages anc1 hours to vrec · out ill egi t i mo..te 

complaints a nd t o ·furni sh them better infor ma tion b e f o re beginning t~e 

handling of such cases. (*** ':') :New com-1Jl ai nts under the. servi ce codes 

rrer "' t hus trea t e d. as. 11 p rir;;ary ec~su c:md t he compl e..inants r.-ere no tifi ed 

tha t 110 ac ti on V10ulci b e t aken. 

~.-: i th the est e.blishment o f t he Regi onal Offi ces m1cl tho is c:ua nc e 

of Fiel d Le tt e r s 9~:s a n d 1 94 t her e vra s a. chan; e L1 this situation. 'l'he 

l att er provi ded s t a ndard s of a d .jus t rr: en t and c:m excl usi ve l'.iletl:od f or 

adJus tment .-, f c a s e s at l ess than full es ~ t u tion , mentioned carlilor i n 

this sec,ti on. This was int e :tpr e t e d ·by some persons as superseding 

pr evi ou s instructions on the droppin2 of c e..ses, but he falla c i es of 

t his vievr_po int rrere soon r e coc nized a n c.l the Cl. st nct~ n ·b et·7een com..Jror:J.i s e d and dr oppe d cases con tinuecl. r~~ . 'fi elCL L,e_t_t·e·; t;; ~, · ':P." '2.~--se --F id -1 -i;·t -i-r-:"4,- ·p·.- yo {i~t~em ·,;4). --

(* *) Fi el d Le tt er 1 5 8 , p~ .l- 2 

(* ** Fi ~ Le t ter l CO , p . 2 

( * ':•**) In l\1FcA Stu C:.i es -S-oeci a l Ex i ts Wor}:: Materials ~/~ ~ 

98hl 
, - ~ 

- .. -.. ,.-· 

--·i th t11e c l o: r c ._V·.r. t t i, <>~L t11 . ~e i ot" l 0.Lfice [l.nc' t 1e 

st ~.te Offi GCf th 1T ~ ~.-~..; () ~ t~ rYI ' JLI<; l 1 :1,,;_ :u.·tn1JJ c nso£ CPJ.1C ~:lo re 

into use . T:1 e ~.C-_'·ici. .:>.l :·iC"l(, : cpre~r'_ L .. tive.., IC'i' enab l ed t o beco •. 1e 

far.'liliar wi t h l oc.::t.l si tun..ti on '1-nd ·fit the uer on cl of eac11 State 

Offi ce , so that t 11 y co llL, nclC'C~ 1atE'ly c.~etcl .ine t h. c0urt· of ac ~..ion 

t o be follo~ed i n eac~ u vate . 

J.\.C' f inall y lop ec~ , th0 cL1..,t of dropped casf' s rw.s b asel on a 

nu.r:tb e_ of rec.son for suspel1rlL1f; fur cher e fort co at ac:jus t111 ei1t . Tnc~e 

~'. so :1 .rere usunll :r ·;res em:. i n combination i ·1 inc i c.LuE~ l cc.so s . T'11ese 

c11ses of sus,;cn sion·, ~entioned bri efly , vter e : f i nanc i a l im,,'b i li t y of the 

~e~~1 o 1 · ent t o make r e ti t u t ion and coupl y with tbe code ; either le:;al 

T eco::o 1ic unenforce ... ~b ili ty of code p r vi si ons; l ack of suffici ent c~e

ni te e:vi c.cnc e of v i ol ati on s t o su:o )o t Bl ue :: e r e;::1oval or r e f er ence 

to thv De~:Jarte:en t of Justice ( ac: i n ca se of small o:o er a t or s vtber e reco:<..s 

·:e1·e le.c::ir:c_) ; the exi stence of sucl1 t;,encral v i ol a ti ons as t o ren C:.er 

o.rlic:nce "u=,- cor:.cili2.tory mea sure i 1 the ~.1a:. tic.u ar i nclustr:,r i..mos"io l e 

~.:1<. . u~1cre l e.: e.l en:o r cement coulC'. not ~ obt2.ine c~ ( su.c 1 as Wr e c!cing a nd 

S"'lav2.-::,e , ?.estaurant a n d 1dotor Vehi c l e Retailing I ndu stri e s); c l os e l y 

alli ec'\. to the fo e~o ng , v1he r e t he i 11o.ustry \'tas cngagr-.. d so l el y in intra -

t::J.te commei.~c e anc. r:a~ )u y l oce.l i n clla:racter; ano. Hhere t he modi f i -

catio~1 or susDe ·1sion of coc.le - i'ovi si o'ns mac~c i t i no1 li t aiJle to Droceed . . . 

rt~1er . T:1e a•---Jlic '=l.tio,! of e.r'. h of t:L1e a.'~o e re .so:ils :for c.r oy,J:9in:-; 

C3ses v~~ ed a c cor&i ng t o l ocal condi t i on s , some o ffic es dr opning ca _es 

aftn:c .. 1a::ing some effo r ts a t acljustrJ.eDt ancl o t hers su spendinG :>.ll efforts 

uncer :9art i cu lar co ·-es. 

Thi s eli s orc.: er ly han d.ling of cas es r efl ec t ed t he confusi on gr ovtinc 

out of the f a ilur e t o enforce the c C.~ s in the courts , the incl.ec ision 

of he ,..,.c',s of ~ in rece.rCl. t o cer t a in ouesti on s of po li cy , a n d t he cons er::le:lt l o ss of :9re~ ti ce by t he ''·i?..A p r ogr am in t ile eyes of indu s try a n d 

the uublic . Its rtor st effec t was on tbe mo r a l e of t he field s t a ff, v-il.1.i ch 

lost mo st of t he en t l1usi asrn and erc~Y n eeded to carry on t l1e int en sive 

co .. Tp l i2.nce p r ogram necessar y t o p l a c e the co(es on a sound , perr.:1anent 

basis. It was , hov1ever, a r eal i st i c a;:;2_1r oacb to ·cl1e p :::-ob l ern of c on servi ng tirae a nd f aci l i t i es ancl enablL\~ the c on centration of ef fo r ts on t he 

9art s of the a.":lb i tious code p r oc:ram c<:tpab l e of anc~ '\forth bei 11g sa l vaged • 

.,hi s '.thole situati on was a s tril:ing i ndi cation of the de t er i or ati on of 

t e total com liance p i ctur e and the sha~ciness of the str ucture , vti t h 

i ts r esul ting inequiti es as to fir ill.s willing t o comJ:Jl y . Onl y one hope 

•·:as l eft , that viith the pac:sage of t ile co tem~l 2. ec1 n er: l an it nould b e 

possi b l e to renova t e the corll~J l i ance sch eme a nd t o arrive a t a sound 

oasi s for a ccompli shnen t of t h e Oi.'i ; i n.al, ·bc:.si c obj e c ti ves of rai sing 

the stm1dards of employment c:.n( busi ness prc:.cti ces b-:/ ,.:.:astic r eo r .:::;ani zation e.nd code revisi on , ~:J ed u i ~1 a str ons , effici ent wosram of 

en fol~ceE1e t. That t h is hopecl- fo r soluti on mu s t be rec?.r c.ecl vrith cynicism 

9.S rather probl ematica l is und.e r stc:.n clable in t h e ligh t of t he histo:.7 of 

'"}A durinG its t no years of exi s t ence . 

38Gl 
- 11 6-

A bare summary of G..roppeC. case s f ollo'.!s : of a total of 118, G77 

l abor cor.12'j l e.in t s doch:etec:i., , r;r;3 vrer e dropped as outlined in this 

s e ction. Of a tota l of 3F. ,423 trac.2 p ractice compl a ints dock et ed, 

5,295 we re so oppe~: 

With reference merely to the sGrvice tra de s ~ist ed in Administi!!a tive Orders X-37 (1Iay 28T 1934), X- 50 (Ju ne 13, 193 . X-54 (Ju ne 20 , 

1934) , (*) the fiGUies ar e as f ollows : of a total of 17 ,7Fil l abo r 

complaints docke t ed, 373fl vrere ci op )ed; of 1725 trade. p r a ctice cases 

docke t ed .in these trades , 1:)4'5 were dropped. Naturally , · vti th the 

suspension of the trade p rac tice p r ovisi orts of the codes involvea 

all pending cases as of May and June 1934 vrer e dropp ed a nd so listed .• 

f*)--·The_s_e_ A~i-~i a~t i·v:e- Ord~r ~ ·s;~;~;d~·a ~the--t·r"a: cie--p ;: t-fc'"e pr'"O""; i· s-io--y;:~

of certa in service trades • 

. . 

98 F.l 
-117-

Se ction 1 - Dev cl ol)ment of i 1 t c: rnn.l 0r "':· .. i zRti on. NRA began a s ~11 exp e riwent in i nd.ustri C' l self- .,ov e r 1 .t,- t . It v:.., s ::or: t cll1 "1 l ate rl h~ t . 

the "'OVeimne:.1t e l E' dmi!. istr.s.tivc !:. ·;en"ie, "ouh~ C' Ct Oi1l y in t he 1,1t e rlm 

v•hi l : inc':t.,stry oe e , ufr ici c:.ltly ~· ll <': c.. t '"' <-"~ dmL1 istc r its 

o •n COd ) C1 ti ns . ( * ) Th is .l·li l os o'Jh;',' i s l e r..s<:' l y r esJonsibH f o r 

+he f vih_,_ r e t () .O J; (J V i. rl. f )r 8 11 ac.e ,,u a t e COi11 Jl:l ·n e e mech i nerJ' in e 

bcvri ...,,.; -·e> · ·.7i th t h e inc e·n t i on of ·in ~u. , tP coc . ifi C:> ti on , c om _JH 1n t s 

of Vi ol a ti ons b egan t o CCliDE' intn ":J .; ~.: n [> nd t he r RA Wc9 S s o:m 

ocle ~ with t l1em, for t h Rpo r ....... ;-.. 2 of c o e s wa s a o"~ ro c~s and 

the oro.;Y am of incus tri a l sol :f ·s v e rnE1er. t l a 15 ·ed consi C:. e r Elbly behi nC:. 

an ti c i ;-~ Cl t j on s. 

It be cmne n-:Jpa r en t t l1Cl t C' s '"le c i c? l @'Ov en 1Ji1e:1t c:- l e -"'ency w('u.ld hav e 

to b e c rc ,tf'Ct t u hc> nc:.l e t he se c oL _l c:..in t s , a t least un til t he Cocle 

ho r~ ties ·: ere or c;P ni zeC:. Fn C:.. -u. ncti nin :::; . ·.n ile t he Nc:- tiona l Incus ~ri l .itec ov er.:: Ac t c on t c- L1 ec no ex Jress Jon;r t o e s tc> ol i sh a. 

<r.ompl i anc c ur.:;eni zati on, i t ,~, Cls i nfer:re ci from t J1e c l aus o 11 To ef f e ctuate 

the _Jol icy 0f this titl e , the ?re si c'. ent i , hereby autho rize d t .. • 

c st Pblish su cl1 c? s!S enc ie s •.• a s he may f j_ n.d. nc c esse r y. 11( **) 

cc r~i~ , t h e comnli en c e Divisi on wes se t u p on Octobe r 26 , 933 .( •~*) 

On t h< t e ~J...:: Ai.r:lini s t r El t or '~ efL1 d. t h e ;.-:_u ties o f t he N&ti onal Compliance 

Dir ec t or , t he Tr~io l CL);.1D l i Elnce .Boa r d an C:. t he ComJl i a nc e :Divis i on a nd 

cl ~~ at0e: t ., t,,c :::t-' :-gcn c i e s t h e cut>ori t y i n comp l ianc e matt e rs which the 

P r csi ( ent i n -"'c;· .c:..·p_l t e rms ~180. ( e l e ·e ted. t o t he .Administ ra t o r u n der :Lxecutiv c Orc.c r s -~c) , 17 3 ( Tc.ne 16 , 1933 ) anc~ 6 205- A (Ju l y 1 5 , 1 9'33 ) . 

Gene r a l :m :t l 1:,L1 cl. i1 Lnsel f L1t e rim :~a ti on.s l CoD:Jl i c> n c e Direc t o r . 

By ~e e ~e Com Jlir n c e Divisi on haC:. be en s e t u p , si x ty-three 

cocle s o f feir om~e titi n h 2d ~e en .?} ed by the Pr e si dent. The s e 

includ.ed. c oele s fo r .sut omobile manufE Ctl..lX in:; , coa t 2nc:O. su it, c o tt on , 

sillc anc. Poo l textil e s a n CL r C' yon , e l e ctri cal nan tur ng , h o s i e r y , 

ic e , i ron end st eel, h unb e r end t i mb e r 1Jro c1ucts, men 1 s cl , 

mo t o r v ehi cl e ret ai li n_; , r e te i l t :c 2 C:Ce , t:hr o'''i n_,; , a nd unclcn-ear and 

alli ecl p r ocucts. 

The J.J a r amoun t ein_i?ha si s t he r efo r e in :i?RA wa s , ano. f o r s ome time 

COi1 t inued. t o be , on c oC. e ma}:in .,.. Go:nnl e ints of vi o.l e ti ons of · the 

approv e c",. codes , howev e r , we r e b e i ng re c e ived. c.e i l y i n increa sing 

numbe r 's. The :?I'O bl em of o r ::;eni zi 11g fo r c m.np li c- nc c f orc e d i t s e lf on 

t he bu s y Adrninis tr e t o r an C. h i s i rrune cci a t e a ss i s t ents. Th is i s n o t t o 

i mpl y that Gen e r a l J ohns on had. l os t s i ght of com:Jli anc e. In fact many 

("' ) The me t h od of r p Jr oac:1 to t he c od_f) l i c: nce Jroblem i s clic; cu s s e d 

i n Chap t e r I I. pp. - 5-10 sup r a . 

( "' * ) ~-;-.:- l I n(us t ri al Re c oveiJ- Ac t , Ti t lP I , Se c. 2( a) . 

( • • • ) Offic e Orde r 40 . 

9861 
-1.18-

weeks prio r to the creation of the ComJlie.nce Division he h a d detai led 

his son, Lieutena.nt Kilbou rne Johnston, t o t he :Blue t::agl e Division , 

t o c:· ss i s t in wo r k ing out a com)li anc e or:;<miza ti on in conne c tion ith 

the Pre si C:.en t 1 s Reempl oyment Agreement, which p r o c ed.ur e wa s l ater 

ada.i.Jt e d _t o c o c:_e complia nce. 

Neverthel ess ove r three e.nd a half m6n ~'l s el a:_)s ed be t ween the 

approv a l of t he first code on July 9 , 193 3 a11d the <iele.ga tion to 

s omeE>ne l ess bus y than ~he Ac

1

.ministreto r of eut >,o ri t y to d.eal with 

compl aints of c oC::_ e vi ol a ti ons. 

In t he meanwhile, of course; eff o rts we re made by c o"c .. e authorities 

e nd ( eput y ac.lministr P.. tors t o adjust vi ol c? ti ons by edu.c .etion a..."'ld the 

Jr e ssu:te of o~1 from with in t he indus try . 

In a t l e2 s t one in<-u s try - Lumbe r ancl Timbe r P r oducts - a numbe r 

of c ase s wh ich hr cl f a ilecL of adjust ment we r e forwa rded. t o NRA with 

the request tha.t enfo rcer:1ent steps. be t aken.(*) The se complaints 

we r e c onsi6.ered by t he G.eputy adllinistra t or end h i s l egal advisor and 

were sen t to t he t~ rn ey : Gen erc> l 1.s Of fic e f o r info r ma l oDini on, 'I'he 

outcome . a.t t ha t juncture is not e_ppe: r ent from a study of tl1e files. 

The cas es we re r $turne0. t o_ 1\RA, hel d fo r some time i n the ~e l d.i visi on 

and ~1e n rni s l e i 0.. When du:oii ca.t.e fil es c ov e rin·· the cas e s he1 d been 

ass emble d by t:P,e .. Code Autho rity t he :tJ.: ti ona.l Co;,;:)li a nce Board and the 

C_omp li an c e Di vi si 0~1 ·we re o JerE tin '~ . 

The Com_JJli ence o r ga:1iza.ti on as s e t U:? on Octob e r 26, 1933 wa s 

r el at ive l y sim:9le . It co nsisted o f (a) the Com_; lia n c e Divisi on ri th 

its t we1l. t y- six office s in t he fi elc".. and. (b) the Nat ional Comp liance 

Boar d.. · The Na ti onal Comp li cnc e Dir e cto r was he ad, of bo t h the cl.iv ision 

and t he CO'll.l1Ci l. 

The f lJ.nction of the ComlJl ic:mce Di vi c- i on was to '.J rin ~ a.bou t 

c ompli anc e wi _th e.pprov eci c ocLes and of t he PRA by eC.ucation and 

concili a ti on. Th is function was t o be exercised i n both the prelimi nary a n c fi nal s t 2ges excep t insofar as a~en ci s of industrial 

self- gov e rn1nen t had been authorized t o hartdle such matters. Failing 

adjustment, it was t he f u rthe r duty of the Connli?nc e Division t o 

obt ain p rima f aci e evidence of violation and 9 resent it in c onv enient 

form to t he Nati on a l Comp li ance Bo a rd. The Boerd a ff or de d the viol a t or 

an oppo rtunity t o b e h ear d before it invo ked. the :t:JOWers of the enforc ement 13:genci e s of the Go v e rnment, the courts cmci t he Fede ral Trad-e 

Commission. That is, the semi-judici a l Compliance 3oard, under the 

Adrnini c; tre to r, made :~)o lici s a.nc!. in s pecific case s mc3de de cisions,. 

The Compli a nc e Divisiop e~~austed ev e ry r easonabl e effort to a djust 

vi ol a ti ons a n d p r epa red cas e s for presentati on t o the Boe rd, and t ook 

the necessa ry administra tive steps t o c a rr;'{ nut t he de cisi on s of the 

Board. 

.. - - ----------- ------ ---. 

("~') See fil es of Be lche r Lumbe r Comoany , Centerville, Al abama , and 

c a s es listed in .:.' a ti onc. l Co;n:./liC'lnce :3oe rd H1inutes of .January 

31 , 1934. 

9861 
- 119.-

Chc:nges to be not lc·t e r trm .•. ·ht the Jc ·)Uty A<tnini"'trnttJr of the 

codE' <m(~ }1i s le,-:;al 2dvi s or· .1or"' C'nc :11ore ,Jr omine11 tl y in to the 1 .oal 

s tages of co <l;)llence ·rocc-c.ne , ( "') but i 'L'bc begLmin c; the org:mi zat ion was i n "uroacl o'L tlin0 as si1mle "S <'bo ve described. 

The internal or :;ani znti on 0f the Co, ~~JL. anc e ::;i vision under Office 

Or de r 40 consisted of four brenches - 2~~iniRtr tive , lDbor , trade 

prac ti c e end Blu e Eagle. 

The Ad..rninistrativ e :Bran ch handle0. mR t ter s Je r t a ining t o personnel , 

prope r ty , and financ for the Com)_.) i: ce Divi s i on headq_'.lar t ers and the 

t wen t y- si x f i el d 0ffic e s, a nt rlso the C..:.is ~· bu io n of orde r s end 

ins t ruc tions anC.. the Te c ei ving ;.:,nO. cor1so lida ti on of r epo r ts. 

The Labo r Br an ch rva s c:ha r 0 ed with th expmi:1P ti or.. of fil e s of 

com Jl a i n ts hc> ~ vi ola.t ior.s of l abo r _:'l o~ ons of .s::rwrov ed coC.e s 

t o as c ert ain ~.1et"'1er o r not ~1e ev ic er~ce c o::.td..1ed in a fil e con sti tut cd 

a _p r ima fp ci e Ccse of v i ole> t i on. These f iles 1'Ier e rec c i v ecl f r om t he 

fi e l cl off ic e~ anc. fro::1 Coc.e Autho ritie s. I n :w st i nstanc e s a n aG.-

di ti onal eff ort wa .:; mcd8 to ec'just t :1e c ase by- c orr es _) onc'.en c e . This 

effor t a t aci.justmcnt s ti"l.l :H? l CL out the olive IJranch, bu t non e t he 

l e ss it con t e i ned the t hreat t .h(l t, failin ~:; :-c, just men t, the c as e ;voul ci 

b e efe re~ t o t he Fsti on e l Co:n _l iEnc e Boa ~ Ov e r the who l e peri od 

of Co .• 19 li an~e Divisi on a cti vity t h i s so-cc l =.ecl "l a st chanc e rr l e tt e r 

v:e s re ~'ec _ c~ uJ. e~ i 11 t~1e "1C.j'.lstrneEt of c>bo1..: t 2:5_ -' of a ll c a s e s 

r efe r recl t o ~-:&sh n. · to~1 by t l1e f i e l o. ;n0. Code Au t !1o ri ti e s. ( "~'"') 

Failinc t o ob 11 an a~jus men t s a result of the l a st chc>n cc 

l e tt e r, the brench su..mr:1s riz ed. t he aali ent f a cts i n the ca s e f or the 

couv en i e:n c e of t he membe r s of t he Na ti onc; l ComJJli anc e Boa.r d , and 

o b tci neC.. t he r e comuencE: ti on of the :Leput y ACimini s trato r. On t he 

ba sis of t h is suannar y g i ven t o bo? rc-:. memb e rs in nce of a me e ting , 

t he ·t3oa rd (._e ci de 0. whe t he:c or no t it would se t a da t e t o h ear the 

c a s e. At t he h ea rin:; , t he evi cienc e vva s :; esent ~ by couns el t o the 

Cm.1p liru1ce Divisi on o r by a ssistant c ou..-r1 sel :; :~ :~e d t o the La bo r 

Br anch . Aft e r the hee ring t he :C:oa r d mi gh t re f e r the c a s e , t h r oush 

its co'Lms el a.YJ.d the Legal Divisi on , t o the Department of Justic e , 

c r it mi~ht r e turn it t o the Labo r Br pnch with i nstructi ons t o obta in 

a~d l evi Qenc e o r t o make f urth e r a tt emp ts a t adjust ment , o r f or 

r e f erence to the Fec~e ral Tra de Commissi on f 0r inv e stigati on. 

("') Off ic e Orde r 8 5 ( Ap ril 12 , 193Ll) . 

(¥"") See c opy of 11 l a st clwnc e 11 l e tt e r In NRA u~ ies 

Spe ci a l L.y.hibi ts Vvo rk n8 t eri a l '/,::83 

9861 
- • • J , _ 

(1'he Un ited States Dis trict Cour ts an6. t '.:J.e Fec er l Tra(e Conh'Tiission 

.'J re n s;.1 e C: .. in the :"e ti onc;J. I nc>._:.:-;::;:;:-·L: J. : ecov e17 Act 2 s the a.gen cies t o 

i' o.-~ .::-s · t ... v c::c t. As u ur: "t ve r of ;_~~ e:t ,_-~-~ cme or t wo c a.ses were han dl e d 

by t he :B'e<ie:c a l Trade Co 111nissi on unC.er Secti or" 3( b) of 'Ii tle I of the 

Act. The time el emen t c;e ci CJ.ed. the aldost Lw .:=: ri aole Jl"eierence g iven 

t h e court 3. ;J.-~iJ.e. ~1e re i s l-to sl'.c}: :~ ing .... s a ty) iC81 ?TC case, an 

6Xc:::1i w ti oE of r·.' ,E· .. om c , L' e s riu C.c ·bJ t nE' Co:·. ·J.i <=: nce Divisi on in 1933 

s howed the.t or o.h :..::.: :cily i~ o ye a.r s or :nor-e ;:re req,.:;.ire6 .. from the time an 

initi.?.l c ompl<int i s filec •;rith t l10 o;;JJ ,• i:- n to the i ss1.1..3nce o f a 

ceasE: ;-mcc Ce c:; i s t o r,:: er. As . <m inv esti :[ L1 -~ a en :: , ho--rever , the 

r·edercJ }_ T rr:- C:~e Corr1l1 i '3 s i 0 11 r enr:. e r ec~ L :-v· ,- J:,:L;; bl c b.elp t o t he :r:s.A. It was 

•N ell est 8blisi-.. ed am· e.c c e :? t ec:;, by ti1& ·vrr, t :!l<:::jo rit y of i'!l embe rs of trade 

2nd. 1<- ustr · Its tech:::irue r·"' s ba sE·: on expe ri en ce. I ts i::w -sti,ga t o rs 

''le r e .Je tt er·. trr:.i;:-Je (: ellCL .. ;E:: tt e r ~r ' ·: .:: n -c ;;or.: e in i.i.a.A. An o:. llotment of 

1"b.A r' .. ~1C:.s w2.s 1:1ec".e t o ~1e Cornr:> ;~ ;· l to coi;- e r· t !:te cost s of inveetigati ons 

mo6.e oy t he: lc,t1;er·. One :.:.u nC: r ec" ::·il c:_ .. ever. :'RA e~es , several being 

surve,/ s of inc -,)_s t:ri s or ·)e rts of i n,·_-,:.s t:i.'ie s , •:·.1 ere i nvesti .::r-· ted and 

rej)ortec-. 011 J.'/ t J:. e I'TC. ) 

The Tr c: c:ce ?rPcti ce !Jr e.nc'1 heik l s 6. c as e s i nvo lvin,; violation of 

tr pr).e :)r ac ti ce ) I'Ovi si ons of ap :rov ed. co , _es in t l;.e manner just out-

] ." " - - · ,.J.. .. l :i.'c e:..-.. ror J._:::-oo r COi :l: .i .u:n~1 . 

T:1e 'J J. ue Ic::Gl e Brcj::ch VIaS ci~ :c ~·e C ' ,'J i th t he o.uty ·of c- dministerin_:; 

the P:ctA. T:'.1es e c::.1.:.ti es we re shortly- 8SS :~nec. to the Le..bor 3 r anch. (*) 

Gt i1E: r f·L'nctions fo rmerly ·,J erforme0. O/ -c::1e 3J.'G.e Ea.de Divisi on were 

a.sf-; i ·:neC::. el sev:her e . Th e Trade .Assoc l 2 ti on -Se cti on was con stituted a 

separ o.t e Division ( **) anc~. t 1w Ii."lsi ·:ni a. Se cti on was 'Jlaced. unde r the 

A.cun i nist rr,tive Divi,i on of :-:-nA -- ,roJJer. 

iVi1.1.ci1 of t he ) r oce d.ure for h2ncUin\ PRA c om)l a i!lts was adapted 

to co C:le violp tions a1d mos t of the ' e r so;,:r"el of t he Bl'iJ.e Eagle Division 

wa.s Bk e~1 over 'by t l1e li F~·1ce :Jivisi on. 

A t ho r ough · nc;_ers t e:,,C.i:-:1: .. or' t he evol:.;.t ion of co(e comJliance is 

not :;J OSsi.ble wi t ho'.'.t a b~o eC {_ e of t he hist o ry of L1e Presiclent 1 s 

Re em ~J oyrnen t ~, eement. ~-fo k I-.iclt e:i.'i c- l s ~o . __ ) 

In J anu a r y , 1934 , t 1:.e f i e l C:·. or :;·ml i zc- ti on of the Comr)li8nCe 

Division vvas ex:·>2:1cl.s d. ( "'** ) St e t e Di rec t o rs v1ere appoint ed by the 

~at ne.l me en y CC)'21Ci l, ,_-jl·,_ o ,,J.s o 8Ct e( as Stp t e NB.A Directors 

for each St a t e . rl'i1ey too;:: ov f}:f . h~ clll.ties of t he f ormer District 

Dire ct ors. Co::.1 ti:L-.i t " of a(\, L li st:cc .. fi on··-\~; c? s i'ns-_-:.red in mos t ·States 

'by trt::..lsfe r rin•; ·Jeroonnel fro.n the :_,i Gtrict t o t he St a.te Offi c e s. 

·Bran ci.·1 offic e s rvere es ~, bl i sLeci i21 some of t:-, e }JO__)Ul ous States. ( ****) 

(*) Com;'J liance Divi -; ion , e.Jo r:'-"c··L:...n ~~o . 1 (Fov. 29 , l 933) . 

Off ice Or , __ e r No . ,, ~ 

-.: b 

Re f e r t o ~ c:.p t e r IV. , su r a . 

"'""'~' ) Brc:mch offices w 1·e e st<:'o'L i s:·e ·._ in .Albany and Buffa lo, N. Y,, 

Pi ttsb\:.r :h , P a ., ~~ 0\.L ::.; n, :l'ex;.•:; an( Los An:::;el e s, Ce lif. 

98l)l 
- 121-

By Office Order 8 ..... , (*) the C')mDlic:LlCe Di rision '!r:S reor:;n izc 

A Goven1.1e.rt Contracts anli. ComJi...tition ectlon ''as crc·tcddich 

later ryas constituted a eparate division. ( • •) nbc Lc bor 3ranch 

!"l nd the Trece Practi c e Pr;mch •rere rbolishcd. An .n.nalysis Jrc:nch 

1.•es ere tee' v1hich t ok ov r th ccrsonnel of the Labor rmd Trade 

Pr actice .bre.nche"' "'nd t 11o e functions of thE:' t···o former brenc"!:1es 

havin._, to · ·i th analJ· si of cases for ~:uf i ci enc of eviCt.ence and 

ef forts at eo.ju tment . Fr:.A .letters were elso ~1<=1nu.led b y this :Br anch . 

mh )resentetio:::1 f c . se efore t J.1e .!.Tr t ional Compli ance Boar d an d 

its succe sor tl1e om 1liance Counci l thereaft er was m~ d.e by t he c ode 

l e :>al c'vis0 r of tJ.1 coc.e i:iwo l ved i n ea c' cc-.se . The Fi el cl. Secti on 

was elev ate · to c brc>nch ~e Jerate fro:.1 the Admini strati ve Br en ch . 

A ontr ol Se c t i on was set uu in t e Ac'Jni:'li streti ve B~;nch desi ...,·ned t o 

ex)e(:i te tl:e l1enc~ in·; of ca~es . T:.e 1Josi tions of ~ationt' l ~om 1li anc e 

i rec tor ?n( Assistant Pa ti o al Con p l ience ~i ct or was c: bol i shed, 

The hec96. of t he c.i v i si on cun~ c :1ief, 8o1.:1,_Jl i an ce Division. As 

u nci.e r ffic Or 6.e r l!O , t ·1e cm.t.. sel t o t he Compl i an c e 1 i v i si on 

ccnti m:ec'. to •)e 2 iJerabe r of t .1e Le.:_:el Div i si on. 

Secti on 2 - "'ene r a l a s pe c t s of nsi~ B cci S!Jl ay an C. l~e:no val. It must 

be re)ee t e c: t ·1a t t~1e l\ati ona l I nctus t r i e l rtec ov e r y Act rbvi c~ed no 

2&ninis tr c ti ve s anc t ions. The Act made t he vi olation of a c ode a 

mis c.emeano r _Ju.nishabl e b:-· fine ( "'"""') en d e l so mac.e it en unfa i r trade 

_J r a cti ce wi t:nin the mec-n ing of the Fec~.e ral Tr acle Act. ( "'"' "'"') We may 

G. sl~ :;a rc t he l a t te r be c aus e of its n on-u s e. (Previ ous chzp t e rs 

h ave outlined the ")O.:_.)ul ar suppo rt a cco r d.ed the 1.1 r ogr cm , ·9a rt of ' ·thich 

c.t l east 'as a.1o ti oTa l, an6. t he gl~C?Cc1..1a l wsninc?; of .:.' o .rcl pr entht.:.si sm 

due t o de l ays in brin_;, ing vi ol c:> t oln s t o b ook , but ch i e fl y , :)e r haps , 

to t he subsi o.anc e of t he f eeling of 1)anic wh ich g ripp e d the n a ti on 

ee rly ill 1933. ) Some emo l oye rs f r om t he outs et we r e n on-coope r a tive . 

r.'h e si1eer v o l u:ne of vi ol a ti ons made ad.mi ni s trati v e penP. l ti e s de sirable 

from an er f orc eme11t standpo int. The l egali t ;y of such a CJi1 inistra tive 

penalties must be l e ft t o ~e l egal is to ri ~ The y involve , among 

o t he rs, t he 1uestion : i~; ay the ?ecle ral J.o v ern1nent s ancti on and p romo te 

an or ganiz ed ec onomic boyc ott? Such a<1ninis trc tive _?en a l ti e s were 

C..evis cci. in t h e f o rm of r emovcl of PRA insisnia ( ':."'"'¥ * ) and l a ter by 

renc.ering vi ol a t o r s unc-;.e r c e rtein c onditions i nelig i o l e t o obta in 

zov e rDmen t c ontra cts. ("'**•** ) 

( ¥) 

( *·· ) 

("' "' "' ) 

("'"'"'* ) 

("' "" "'"'¥ ) 

A:_J ril 12 , 93~. 

See :Iis to r y of Gove m:~en t Con tre.cts :Di v i sion , Y5.A fil e s. 

J.\T I RA, Tit 1 e I. Se c. 3 (f) . 

I b i 6. , Sec . 3 ( b ) . 

Ac'Jninist n- t i v e Or C:,e r X- Al ( Octob e r 17, l S33); 

Offi ce OrCe r 4u. 

(····.·>-·-f->r·:.r:) i. _e cu tive Or c'.e r l'o . 6646 ( La rch 14 , 1934) . 

9831 
The Bl11. e Eagle , a de si gn ;Je t entecl by the Uni te e~ Stat es Government, 

WE1S i s ::·u ed. ·;;; er:l ,~ o;,·el'S '•r}::.o coo~.y=; ::- ter1. i 1: ~~ e Pre si G.eYJ t 1 s Reemp loyrnent 

p ro g r am . By its clispl a.s· t hose cf the IJUb li c '.v! o ·;! e r e in sympathy 'Fi t:h 

t he Pr e si(ent 1 s progr ali.1 cou.ld t e ll wlle re t o buy. Ab senc e of t he ~lue 

Ec: J.e t o l e t l:e sc:•me ·r u.b lic v1hm:n t :) boycott. Sinc e · sit§;n1ng the 

Pr e si r1ent 1 s Ii.eeiup l oymen t !l1ent wa,s volLJn t a ry - exc ep t f u r the 

p r essure uf ·oub lic 0pL:.i on - so~ 1e i:-ec1 e 'as necesscp.r;y. Sin c e a ls o 

the )Ublic COv.lcl no t be kep t Cl.-c:rren tly ec.ucr- t ed. t 0 . t he ,-;r o··rin::; number 

of in c.~lJ. strie~> p l aced. unc~er !3:lY·Jr uv e C. cud.es a:.1o. in or de r t o av oid qrin.gin; memb e rs of code d industries uncte r t'1e -4izpl easl...re of the 01 .yin ?; 

_mbli c the _')ri vile,.~e of di s .Jl ayin,; the Bl ue :;:.::', -;;J. e V"qs i ::r 1edi etcly 

8X 811' ec.'. to 6.'11JJ.l oy e rs 'r!h o we re co.n yi ~~ v:'i th the }Jl'O\ri si011S of an 

ap.:_Jr oved Col:e . T:'lis i s at l east a. p l 3.Usi b le expl Pna ti o::-1 of t _ e .:marnoly 

of <' a::.~c in ·.- , a n el!t:)loyer a bac.'L ~e of h o:wr for G.oin:;o; ,_,ha.t the l 2w says 

he ::m.s t cJ.9 under )eY1e.l ty of fine . · 

The Blue e I nsi .:;ni a oo _-: t vio · f o n ;.s. One '."as a p lacarcl. 

12 1 x l 6 1 t o b e chs_?layed in t he ~! ore or 1'Jl e,nt of an errp o~rer . This 

l ater evo lved i n t o the Coc.: e Bl'J.e Ji:c-··3 l e . Th e o t her was· a l a.bel used 

for tt1e mos t part i i'l t h e ne.s(l e in~ us. ics '·''here ea.ch dr ess, t, 

suit, coat , . nec1'.:.ti e or o t her articJ.e ·of E·_ poarel w.a s requireC:. t o bec:r 

t he l abe l of 8)_:,Jroved (, e sign . 

There is no dou bt t~at the Blue ~lc in b oth plecard e nd label 

forms had e tremend,o,J.s. ~ .. wi ng ,c r t h r m .... _:;:'lout 1933. The labe l 

continuecl t o t:e o.:n c f fc: ctive i n·:,trl .., 1eE t for o·o t ai:!'liug complienc e in 

the an 1en t inoJJ.s tri es ·u.J? t o the en d.. This i'fe 3 not true of t he p l r- card. 

The ef : .. 1: cti v enes s of the ,j 1 s ca r d in the be1; intdn_: wa s due to a 

v e ry generc:.1 enthusi asm and a. ::::;enui ne s _p iri t of c oo:.1ere tion on the 

part of employer s as well a.s em llo ~ees 8l1C1 or' t he s e s ame in( ivid.uaJ.s 

and their famili e s t ur1:;. ed co~1Sl.D,lers. This en t~usiasm reqn ired 

stL:ml a.ti on , wh ich it :r e c e ive d. Th e .fervo r ·c o·:.llG. no t be , o r, at 

l east wa s not, rol ~e d in fini ly. The Jerio d of in1oc trinati on 

We S too short t o ed.lJC<J t e t he inc·.iVil.ual t o the )O int '."here he "I!OUl d 

nsci m.:~ sl~' as}( rw~.el f if t he i3h ;.c :Sagl e y;re re c!.i spl a;:rcd ·o e for e he 

waul& j11C::ke 8 purcb.ese. Nev e:ctheless , · t he L1si gni a vJa.s e ffective 

lon.~ c:fter t he first burst of e"1 thusiasm hac.l sn sil~_ ci. 'The re1noval 

of the Blu e Eagl e vri t h a tt endr.nt pYtbl:i.ci t;y fi xed t be ::tame of the 

violC' t or 1 s estaoJ.i s~· nen t in t he 1ni nds of many w;:w r ef·ls e d t 'l 

pe.t r ani ze r-:n r i_ jL. _o.{-;E"C:~ i1on- CJi1:)1 i c r. This f 'l nn of ..aenc ti on VJ[l s mo r e 

effecti ve in t he CLi ·;trlbutive t r r ctes t hP;1 in manufacturing . 

The :oro c e d,_w e ·fa r re,.'lov L1g P 31 ue Ea ;l e con teL p l ated ( F.l) pa tient 

efforts on the ' le.rt of tl1e fi e l d stt'f f or r.~e Au t horj_ t y to obt a in 

ru1 aclj us t men t ~ c1escri l.led in p r e c e ( in; c> £rp ters; (b) t ·u rthe r effo rts 

by om li an c e Di v i sio n i:e<' Ci.c,.J.a.rt e rs, exc e;Jt in 1ml:· sual cas es , to 

ob t a in com.Jli c?.nc e by mc.:-ms ;.r L1.e 11 18 st ~1 2!J.Ce 11 ·l etter; and (c ) a 

ee rin ~ b y a. t h r ee- mern'Je r Cor1i:1l in1ce :Bo&n". co!n)osed of a l'e :Jre sente tive 

of l a llor , c: r epresent a tive of L1( n s trJ enc. a n i m:JP rtial in7lan. 

Zven L1 the ev ent of fl. finc in ·~ of viol . t1 on by tLe :board the responde11t 

was still c iv en AL op port ur.i t y t o adjus t the vi olc.1t ion by si.:;ning 

a c e rtlfi c p t e of ft::.ture com1Jlience (* ) an,·:. kin,~ r e stitu ti on of back 

( *) For t ypicol certifi c a t e of co:.t.lli ance see appenC:i.ic e s. 

3861 
- , , .... 

wages t o e!Tlp1o· ees in C;.)!:e s i 1v ol in; vio'l :.: tion of '. '?· ·cs [1 nd hours 

provi. i ons. i''i th r· ·1 r e c:.-: f::"~ •Jti o·d:' , :-.o J..'e· c·l·.Jl ·"-~: n.l tc tion v''D S ever 

dev ised for trr:o.e lll'ctice vi olr' ti'lj s :;o thc::t P< .j'l. '.:·.;ttaen t :-; were mn.de 

sol ely on the ." ~ir. of n Cl·rti i:i.cnte of co;.•.: l i·nce. 

In cas es h···ere tr1e :Boer , r'o'l.."S.\i. a viol n t ion Dn c' u~ r·esponc1 n t 

r e fused or fc<iled to r-c·.j' .... '..s t, t lw t f~ ct '~ Ds en t e1cd in the r e c o rd 

and a t e l egram wa s pre:par d for t he A&ni·1istr a t or 1 s s i "?;n t:l tnr c <iircctin ~ the vi ol ator t o c cEse ~i. layin ~ the Blue Eagle ~nd t o de liver 

11 NRA insi;?"nia in '1is :poJse~~ion t o h i s l oc a l P ost!11astcr.( "') 

At this juncture it v,•a s c·,st0JIIC'TY fo r tl-e Comt='1i c:m ce Divisi on 

+, o r ef r the c as e t o t he conrts ro r H osecuti on. At f irs t t he 

chn nne1 of ref e r enc e wc:s through a li[l ison offic e r t o the .ldepartmcnt 

')f Justi c e . Vith the cre2.tion of the Liti ~~ tion Divisi on(**) the 

f:.le "as se.1t t o t h at Divisi on. As or evi ously no t e d, State i!RA 

D're ctors we r E- autho rize d on ril 6 , 1934 ( "'"' "') to 1·efe r flag rant 

vi ulati ons (~_ rec tly to t he United St a t e s District Att o rney. 

ReturninG t c. the r emo va l of the Blue i c.1e:; l e , tr..e .i.J enu.l t y or ovi d.e d 

for ille;:;e l c•.is}?l ay \~c:;s both f ine end i m)risonnen t. ( "'"' **) This was 

under authori.ty of Se cti on 10-( &) of ~t iRA. Fo e f.t'ort was ev e r made 

to invoke t:hese •Jen<'l l ti es in c ol.,rt. J , 

Mo st em_o l yers Lnmediately took cJ.own t heir Blue Ea -:;l e ~r,hen 

instrn cteC. to do s o. A :r.'e;ov stltbb orn nne s v1e re bl ui'fecl into emo vin ~ 

the i signi a f rom C.is)l ay , !'!lostly by RA pe:.~so nel but i n A. f ew instances by the Uni ted St.:1.t e s Atto rn ey-. The instl'l:L ction t o deliver 

the insi~ia to t he Post::wster ;a s s e ld..'llll f ollov'.'e d up ;mel nev e r to 

the po int o f . invok ing e~al a c t ion. 

It app ea rs, t he r efo re, t hat t he 31 ue :ii:&g l e rJl c? CEJrd was e fi' ec ti ve 

in the be [. nn in"~ ' ::_:rew l ess an d l e ss so, unti l t or1a rd the end of NRA 

it is o.ouo tfpl if it h&d. a ny fo rce. wha t ev e r. 

The histor:,; o f labels is quite ( iffe rent. '.!:'h e )rinc al u.se rs 

of labels were t he gar me11t indus tri es. Prior t o NRA t h ey had b e en 

in a mo st chao tic o~1c~ i tl on , the pr ey o f many 0.e:-no rc3li zing influenc e s 

rang in@; fr o:n cu t- t h rof"l t corn)e ti tion to r::: ~cc:: t eeri ng . The code s very 

de finitel y he l :ped. t hese indus tri e s. There wp s t1·o g p r es S'l..=.re of 

O)inion vri thin t hese indust Ti es t o om~Je l om~ li ance. A numbe r of the 

gar ment iEdustri e s v1 ere m~ ho rize cl a t an early ~a. te t o ~1andle the ir 

own L9b o r c ompli ance . Ti.1e lo b el <;;.ceq,_,_ate l y finance d c o cle adm ini s tra ti on . 

( *) For copy of tel e.zrarr'. orL. eri n-:; rel!1 ov e l of :..;1 ue :-ia.::le insig nia 

See ~· RA St'uclies :) Je ci a l :t: ·cl'li <J i ts Wo r k L2 t erial =\is 

(*"') Office Orcle r 74 ( Ma rch 26 , 1934) . 

Ao_mi r. i s tra ti ve Or(e r X-14 . 

(*"'"'*) Exec'\.1.t ive Orc r =#6337 ( J et. 14, 1933) ; Acmi n i s tra tive 

Orde r X-Al, X-A2. 

9861 
12·'

The larce de-- ·:.rtment st o r ss and chain st<;>r£?s coo)e n >tec'c b:,r requiring 

rne rcha n 0.ise . . J bear la:lel s a11cl the Rete.i l.:Tr!C>ue . Cocl..e ~n.sC:e it a violati on t o purc>as e , se ll o r ex ~1.an:;e ,_,_nl c;bel.ler:1 g':l.rmsDts , ·~.rhere la.bels 

were r equir eC:. by t he .il.?nuf ~· ct ring. Co de . ( * ) 

The n e t :tes,llt ;~a s an e f fec ·Giv c nstn,me~·ta li t~r o:£' c omoli e.:.1c e . 

The l egc:1 questi ons raic::;e J by rec~uiri:n ': t he 11se of labE-ls a r e m211 y 

an c1 c amlO t be deal t with Il.e re. It was i nevi t s b l e t h at ~1e ;;~in i .:o tration of c omplicnce b;y an ~-::ency ,.,i thin t he :'1Ci.Us tr r 'PJl1l d enc~ to 

a rbitra r y acts in some inst a nces. ( **) 

Ti1o :J l~oc C..ure for withhol ding o r sv.s >e!lclin ::; l e.oe l :-. was :!.eid d.o .n 

ir~ Admi ri istretivc: O:cder f-T:) . x- 3. ( *-.-'¥·) Coce c-utl:.o ri ti es or E:: enci e s 

s et 1.A.p by t he11l '!.Te re e!11_,Jowerecl t o r efuse l 0.bel::; t o i1.dus tr~~ memb e rs 

f ol'_n c1 by t hem to be in vi ol c;.ti on of t he. co 0.e . A r e1Jo rt of t he 

sus_;>ensi on. V!e f3 t o be sent to t:be Co;:ml ic:mce_ :Ji vi s i nn o~e r e r •.:i t~1 e. 

tr c; nscl~i t of the he .sring acc o rG.e d th_e re·spo·ncLent ,,ri ~1 in one day. 

By an amenc!Jnen t t o /l_(',.min i s trc.U ve Ord e r X- 3 , inc:-.6 v c- r t en tly or otherwi se, t i:1 e time l irni t s e t Jn h be l c oc_e c.v.thori ti e s fo r su lJ~ i tti:-;._; 

the record of a c ase f or l' evi ew to t he Comp liFnce Divisi o " was omitted. 

("'***) This :~:: c:ve ris e to :: bu ~es w.: ;.icll l ed t o the est ..,b l ishinen t o f E'. 

La b e l Bevi evr Offic e r in New Yo rk City , t he c en t e r of t he ge. n:1e~1 t i ndustri e s. Th is offi c e r r e .:o r ted t o t !·w ompl ia~1ce ::Jivi ni 0n. (~'¥*"'* ) 

A more )r ec i se J?r oceu.ur e fo r he:-t li.li:i.1::: l a bel ._ Fs Jensio ns wc::s se t i'orth 

in A6n i n istrc;t ive Orcter rio . Xl 35 , ( "'"'"'""**) f1 1l d t r:e time l imit on 

subrni ttin_; CEwe s foy· r evi ew to t}"e li Ei e Division was r ee sta blishe d. 

Briefl;y, case s o f :Jlls pen si oll o:. l sbels or reLlsei. t o issue l a b e ls 

in the firs t instc:nc e b;-.r t he Cori.e A--...:.t hori t ;y ·,7e re s·J.b ject to omp t 

r evi ew by t hE• Lob e l Revi e'.v Of :: .- r en d t he Cor:1 ;li e.nce J ivisi on end. 

were g i ve n :r:j_·efer en ti al t reat ment t o i ns ,~ .ro an earl~" h earine. The 

subj ec t of C' (~ li rn ti n of l a.!Jel -n· ov isio11s of. c o-de s is more 

adequa t ely t 1 ea t ed in Dean G. E l,·:arc"._ 1 s r e )Ort t o t h e Chi e f of t he 

Compl. i cn ce Division. (  "-**  ) 

( *) Code f o r Re t ail Trrde , Ar ti c le I X. Sec ti on 2 . 

( ** ) See Coe..t c.:md Sui t Coci_e h is t u:t:Y· 

( * '~ "' >,< *) Gor:r:l1i c.nce Divi si on O.d.i l-e .. ;emo . ~o . 2Ll Au~": . 8 , 93 ~- ) 

A (·J i! i s tre tive Orde r Xl38 . 

** "''~'**) Feun1.ary 25 , 935~ 

( **"'"' ***) June 28, 193:, - inc r~Jorc .. t ec1 i :1 t:;e 3}. ren d.i c e s he r e to. 

9861 
. - 125-

Secti on'3- National Labor Board ~ses . In ndGiti on to the r outine 

manner of removin; NRA in i ,ni::l ther e wc>u D 1ccL" 1 procco.urc in 

connection with so-call et~. 11 7a 11 c a.';cs , (*) t1J e e:• d.nini ~. tr· tton of which 

was intrustec." to th e r ,'l tiona l L<Jbor Jo<n·d 'lld it:~ successor , the 

National Labor Relvtion s Boe rd. The Ex0cu tiv e OH~ r confirmin,'S the 

previ ousl y ap ,)ointec1 Na t ional. L8bor l3o8 r<l 10, <le i t". 11 finc,iM;s 11 

( oresumable bo th o s to l a''" ore! facts) bi1.c. 'Lr. ': on < ll o t l1e r C~dministra ti ve ac::er ci es of the ,ove rnmcn t . ( "'*) · ..• en , t he r cfo re , the 

National Labor Bo;::;:co found. an em ·Jloye r · n viol;: tion of t he collective 

ber:;aining or r el ated c l a1..1.sc , the · e ·to 1.h•. •:;e e1.1 t o be an automat ic 

finclin.; of code vi ol .., ti on b c au se t l1e s t ph'.t e ec.rnir ec~ every code 

or a~ eemen t under the a ct to cont.?in the colle c t iv e bargaining 

gua r cn t ee . The · enal ty for c o ·Lc viol c> ti Cln \1ras l oss cf the :B lue 

:a,~le . The c::c1. inis tr<:' ti on of the Blue E ::;le was a fun ction of NRA. 

:Uid this make NRA a ruhber st;:·m_) for ca r rying 0ut the finding s 

of the Nc? ti ona l Labo r Bo e r d? In p r a ctice i t c.id no t. A c ert ain 

d.e~ree of administrC' tiv e l a titud.e \':as aclmo, ec· ~;ed. t o r e st in :NKA 

as a re su lt of conf e rences betvteen re1Jres ent c: ti ves of NH.A and the 

t~ B. In mos t ca s es NRA c- ct ed f evorabl y on the request of the Labor 

Boa rd. ( *"' * ) Bu.t in ot he r cases i t eli d. n ot comnl;y wi t h t he :Boa r d 1 s 

request, as in the case of Colt 1 s Patent Fire Arms M;mufacturing 

Company ( perha.ps be c ause the c ompany i s -Jc? t en t ee of the 3 rovming 

machine un, s t an d.ard equi ,;_)men t of the Unit ec1 States military Services) 

an d. t he Sa n Fr anci s co Call-Bulle tin ( VThere the Pre sio.ent l a ter 

affinned the final jurisdicti on of the S.:_Je cial Labo r Board for the 

Newspa1)er Code) in the c c> se, (*" *) vvh ich was t entemount t o saying 

the Labor Bo a r d v<'a s L1 error L1 te 1) tin~ to hanclle the as . In 

the t wo c a ses l ast men ti on ed as 'Fe ll as in other ca <; es NRA made 

decisions on disput ed questi ons of l aYF and. ·.;J olicy. 

The situation was not sa.tis:fa cto r y t o either l<iRA or the NLRa. 

It crea ted .Administra tive difficul ti e s, sE Ve rise to ~mbara ssing 

situati ons and causect del ays. f.'ian y so-cRlle d 11 7a 11 c a ses received 

wide _;_Jublici t~r due t o the Jromi::en e of the r esponden ts a nd t o the 

fact tha t the courts we r e Dr one t o rul e against N?~ i n such cases. 

NRA t ook a.wey t he Bl ue Eag l e anc:_ Dl so t ook the blame . On the othe r 

hand, the Labor Board was not a l ways s iven the COOIJe r a ti on it 

desired .• 

The h i st') r y of t h e .r e l a tionshi p b e t ween t he 1ffi..A and the Labor 

Board inch c a t ecl tl1 e 2 cl.vi sa bi lit ~- of a se_tJa ra.tion of t he so- c a lled 

11 7a 11 Jrovi sion from other co(.e )r ovi s ions. 

(*) A mi snomer, as Se cti on 7a o f EI :d.A mef.e anc y the i n clusion 

of hour o:. _. c :vage p rovisions ~ the p rohi b ition of chi ld l a bor 

as we ll e s e;u.ar ah ee in ~ t he ri ght of co l l ec ti ve ba r gaining, etc. 

("'"') Exec lJ.tive OrC:.e r 6612-A ( :B,eb r ua ry 23 , 1934) . 

( "'"'"') See files of Ha rriman Ho sie:r;y Co. , ira.r riman, Tenn, ; Budd Mfg. Co., 

? hilacel _Jhia.; We irton Steel Co ., Weirton , W. Va. 

( "'"'"'*) Presi "i.ent ~i.oose el 1 s l etter of J anu0ry 22 , 1935 t o Francis 

Bic"'..cUe , Chairman , ~r at onal La.bor Re l a tions Eoard, NLRB rel ease 

#261. 

9861 
-126-

§ e cti on 4 - The Nc:tion,al. Comllliance Board and Its S11.cc essor:s. The 

Nati onal Compli ance Boa rd W8S established by Office Order 40 ( Oc t ober 26, 

1933) . It consisted of the Na ti one l Com:o li ence Director, ~ne member of 

the Indus trial Advisory Board ( a.ppo in ted by the Chairman of that board) 

a nd one member of the La bo r Advisory .Doerd ( ap_; ointed by th6 Chairman 

of t hat boa rd). P er manen t advis e rs t o t he Nati onal Cornp liC?n c e Board 

we re a ssi gned by the Leg a l Divisi on of the Reseer ch and Planni ng 

Divisi on. The Boa rd was or ovi ded with a secretary an d necessary 

assistants. 

The duti e s of the Nati ona.l Com·Jl i anc e Board were , upon reference 

of orn Ll ts from t he Com? li cnce Di vi sian, to undertake ·furth er 

a ttemp ts at c;djustment, r e commenc:.. exce.Jti ons, r emove t he Blue :c;e{,;l e , 

or om enc~ r eferenc e t o t he Feci.era l Trade Commissi on o r the Atto rney 

General for a. )p _J ri te action. 

The Board a lso a ssumed t he duti e s for:ne rly .:: jerfo r med by t he 

PRA Policy Board, n c>me l y , t he i n t e r , r e t a.ti on of PP~ , t he 6 ranting of 

exc ept i ons from ?RA and the m1 e.1c e. ti o~l of s\J..-osti t ute _p a r agr aphs 

of the PRA t o the AcJrni n istr8 t o r. PRA ex ti ns we re p a sse d on by 

a subcommittee of the 3oa rct co1.n ose d of the Lc:,bor and the I nc,_us try 

members. The Boa.rd. hel d its first in tin ~ OctolJer 30, 1933. Willi am 

H. Davis wa s appoint e d Cha.i rm?j_i and l'J2 ti anal Compli <m ce Director on 

No v ember 2.::1 , 1933 ('*) and serv e d until t he Bo a rd was abo lished .• Pri or 

t o his a ppointL1ent, mee tin:;s we re conduct ed by va.ri ous a ctin,. Chairman. 

'J:lhr ee assistant National Dir e cto rs v1ere app ointed. 

Th e Boa.rd me t a lmost every ctay &! d as time '" en t on its de li berati on s call ed fo r virtually the full time of its members. It devoted 

1no st of its time t o h ea ring cases charging violation of approved 

c oC:.es anc:C _of the PRA, determi n inG ~)O J. ici es to b e pursued. by the 

Comp li2n ce Divisi on, i n t e r ::)reting t he PRA and })assinG on exc ep tions 

from the PR.A. It also c onsi dered sev e r a l c ases involving strikes and 

t he rL7;ht of emp l oyee s to ba.r g a i n col l e ctivel y· t h rough representatives 

of their own Choosing . ( '**) 

Pr e ssure of work l ed t o the seua.r a ti on of the duti e s of Chairman of t he National Co:n'Jli anc e Boo r d from those of Ch i e f of the 

Compl i an c e Divisi on ( "''**) both of wh i ch h a d been he l d by t he National 

Compli an c e Dire ct or. Arthur J. Altmeyer 'Nas made Chi ef of t h e 

Compli ance Division. 

- -------- -----------

( *) Offi ce Order 4 5. 

"~ *) See file of Ford ;. o t o r Company , Chester, Pem1sylvenia. 

*) Offi c e Or er 85, (A, ril 12 , 1934) . 

9861 
- 1..:?-

Vithout r•rnd ~ thP. ,"ti , 1l r1J1.,)li~·nc...., :.:;o:rd. ,.,rn ·bvlishcc.l. 

l·lay 21 , l93t . ("') rhe C':lai.nnn1 of tht vo"l'C. wa;. unccr < tt.:~cl.: by the 

Phil.,del >!lio necor~.' rm' other Jro-L· b:.H· ·:v~n·ri:- 1• · 1.J"C' 'SF> of 11i:: 

handlin:· ,:n· tl e u,: r. 1:· tlllfnctl ri.t: vO 11)an' c·,sc , '1 c.::~ ;e ·;hich never 

should heVC bPCD !' fcrr e( to t}, . ., r:·lti'Hl['l C0!•Lli:·nce do'3l'd in~s:mch 

as it involve' a qu· sti on of col.le .. ::tive r r _, 'li:1ir::· <'Ylll the "i.:"' tional 

Lebor ..::loarcl \'D S in o ... )erctiou ;'t the Line . I t is :.:· :t so t;enen1lly 

"Up 10 ,cc"l :uf'lt tl1e ~ctiuns of r-n~ sc.:,te:·:e11ts CJHC'n:-~t:.n:: from another 

b oc:> r c - t 11e ~ev e': Advisory ( .... •.? rr o,N) 13oard- r;,.T'I·e t he Am,1lni strAto r 

a distaste f r boords in ~e l. 

The c>bo li tion f the ra ti o:1al Co·nr> lianc e 3oc rd and. the trAnsfe r 

of All its functions t o the Chi e f of the Com:nli c:-·nce Division cr ea e:d 

a )roblc:.m. 1,lh e ad.,inistra tive C::u ti es of t he Chief or the Gompl ian c e 

- ivision Ce.lled for his ful l time and nv ertil.1e. It w~· s Jhysic lly 

i mpossible for him to s it a ll day hea rin -_; c ase s ancl ,)e r form his o the r 

c.iuties. Dr. Al t f!1.eye r :'rote:ste(l t he aboliti on of t ne Comp liance Bo 2.rd 

( **) but the Board ,.,a s no t r evive d. 

The si t ua.ti on was me t by t he Ch i e f of t he f5omp li ~nee Di vision 

rcquestin..::; and. autl"lorizi n:z; the mc:mbE: rs nf t he- a1)olished ~-a.tional 

Compli ance Boa r d to serve a s c ounsel o rs until f"\.:rtJ.1er notice. The 

counselors compris ec. t he Acivi "'o ry Cou::"lcil, Counli - nce I'ivisi on 1-TRA 

and served unc:er t hat name from l.J a;r 23 , 93 ~ t o Jun e 8 , 1934. It 

was the s nme bo e rd vi th the seme duti e s, excep t L1.::.t es-~-w si bili ty 

f J r dec isi ons was ' laced on the Ch i ef of t he o~p li ce Division 

whose other· duti e s p revent ed him fro m b e ing mo r e tha n an occ a.si ona l 

visitor nith the Advisory Counci l ri.u ring its delib e r ations. 

The name of t ile AL'.vi so r y CoL.mci l was c:1P.n .,ed t o Co1nuliance 

Council, lTEtA on June 8, 93 ~ b e caus o of c onf1.si on r esulti ng from 

j;he exist enc e of severc:;l :: 1er~ i'l·.v i::o r -· ·o::;' .J. . 

The burden of '"orl: _placed on the Co;n;Jlience Cou ncil g r adually 

incree s ed until it becCJme a'J0aren t t h,. t one cou.:.11cil coul d not h£ondle ~ 

all the Ce,ses c: ri sing ev e r ywhe r e t h r ou-·hou.t the c oun try. The cho ice 

was betv1een creat1n2; a deli ti onE,l _)'"' n E-' l s or c3.e c eil tra ::.. i zing the wo rk 

into r e:;ional councils. The l a tter cours e fiEall y wa s t aken with the 

establishnent of t i1e Regi onal Offic e. system. (***) 

(* ) Office O::c r;e r 90. 

("'* ) ~..emo . A. J . Altueyer to the .Ac:.:·;inistre? t ; r, Ap ril 22, 1 934 . 

(*"'"') Field Le tt e r 190 ( l.Je c ember 28 , 93~) . 

9861 
-128-

Washi ngt on had be c ome a bottl e- ne ck. De l ays we r e occu rring in 

the ::ftna l y sis Br an ch , in t h e Depu t y -Admi ni s tra t o rs' of f.ic e s, i n th~ 

Code Legal Adviso r s 1 offic e s, L1 wa i ti ng fo r a p l a-c e. on the o' ke · .. : 

.. . ' 

These cumul e.tive de la.ys h a cl a s'eri ousl y ·c:Letri men t a l e f f ec t on CO!Jlc? lia nce 

mo r a l e. Besi de s, c onsi de r e bl e he ¢l.s J \ftJ a s' invol ved i n o r i n<;ing'· · 

r e spon dents t o V'h sh ing t on ·from a cii s t anc e -· a t ·' t hei r o m e:xpens~ , ·~ : 

! . ,.. 1 

E.s rly in 1935, n ot a ll on t he s ame .lat e , Regi onal c·amplianc e. 

Coun cils v.e r e se t U ) in Bos t on, l\T e,'.V Yor k , ii(ashi ng t on, At l a n t a , 

Cl ev e l and, Ch icago , · Omaha , l~ s e.n d San Fr tncis co •. 

The Regi ona l Cm:2pli anc e Cou11cils we r e c ount e r p art s of t he · ·a ri;:;l.nal ·· 

ComJli anc e Council. b c.ch c onsis te d of an i m;_J ? rti e l ch a irmru1 , a · l a.bor 

memb e r <me\. a n in us try memb e r. A l eV',ry er expe ri enc ed in li t i g a ti.ng 

case s wa s ch osen a s cha irme n be c au s e the H.egi on a l Counc ils he d the 

r e spon sibility in f a ct but n o t in t heo ry of ref e rring cases t o the 

United St a t e s Attorney f or p r o s e cuti on an d it was t he desir e of t he 

Administra ti on to _Jr o secute only strong cs ses. The r e was a l so a 

leg al a dviso r wh o _9erforme ci in t h e r e:;i on s t h e ci.u ti e s f ome rl y 

pe rfo r me d by the .co d e l egal edviso rs in Woshi ngton. The s ecre t pri a t 

c omp ris ed. ·a s e cre t a ry, an ana l yst, r epo rters &'1c":. n e c e ssary cl e rical 

a ssis t ants. 

Section 5 - No tic e of Hearing s. Vvhen the Na tiona l Cm:tp li a.nc e Board, 

Compli an ce Cm .. mcil or Reg iona.l Compli ance Council ue ci c"t.ed to he ar 

a. cas e , t eleg raph ic n o tice of t hat f a ct was sent the dent. He 

~a s info r med tha t the St a te Director ch d him with v i ola ti on of a 

g iven a rticle of a given code by p ay ing l e ss than the minimum wage , 

or what ev e r the all egation mi ght be. ITo exact s t a t ement of t h e 

cha r g e was made in the notice until v ery l a t e in t he dev el opment 

of como li c-·nce .~ roc dure. ( *) Norm2lly a respon cl.en t was g iven at 

l east a week's no tice; mor e , if h e wa s l o cat ed a t a di s t an t po int. 

The r e we r e n o r egul a ti ons on t h is qoint. 

The r e spon dent was invit ee_ t o a tt end t he heari ng . No a g ency 

in NRA c ould issue a su bpoena . 

The Li tig e t i on Di v i sian r a i s e d. cp.e s ti o:1s a s t o t he adequacy of 

t he notic e b o th as t o f or m a.11C:. a s t o t he time :E;iven t he r es'Jondent 

t o p r ep a r e f or a rin ~ an d a lso as t o t h e r easonab l en e s s of r equirins the r e sp ond ent t o trF.J.vel consi der ebl e cli s t Bn c es t o att end a 

hearing ev en a ft er r eg i on a l coLmc ils we r e se t up . 

The onl y i nst en c e of a he ri ~ ay f r om t he seat of t he Boar d 

or Council i s f u r n i shed_ by t he Na ti ona l Complianc e Boa r d 's hear ing 

on t he Ford l\,io t or Company c a s e he l d in Chest e r, Pennsylvania. It 

was n ecessary b e c au se t he s t r i k ing em?l oy e e s coul d no t g e t t o 

WBshi nc; ton. The re span G.. en t di d no t a__Jp ear. 

Post (Jo n ement s we r e a ll owed f or c aus e . 

Un til t he est a blishmen t of the r eg i ona l syst em, n o st.s.t emen t of 

t he 9ro c edure f ol l cwe d i n t he c onduct of a hea r i ng wa s g iven a r e snondent bef ore t he hea ring itself. 

( *) Field l e tt e r 213 ( May 2 , 1935). 

9861 
-129-

Section 6 - Proceclure at ·rearin ··:s. The Jr oc e ~L r r t ::e:-rL1:s oc f or e the 

Nation.sl Com Jli.:-nce - o<' n :'. [I ( t . c Ca. 1li. · :.1 c e C)1l.;, clls ,-, pr; i nf orJ·1a l. 

The 1neetin _: s ,··e r e no t o en tc tlw u ulic. · 1·l or t o, ec ntr ... l iza ti on 

the COLe l e ,<'1 ..-,·viso r c- .:.1 fr e e~ tl ./ t ' 1e :Ue ,•· t , Ac:.u lni r- tr·· t o r of th 

coc!.e were pr esent. The r f·Uonc:.ent . i ·l1t b e: .. ce o , lr"11 i ec' L> y counsel or 

re)resentec".. b:; coun el ···i t hm: t hi.. ·.eJ f , : 1e<rL1 ';. 

Th8 Chainnr n , 1avin_; inf rn t~ h i JJ s e l f of t :· e n,- tur e of tho CAse 

f r om the r>nal;y sis of t h e evh eucc e.~e reC:. in the Anal;y sis - r anch or 

from t h e brief pr e JE·r e d o. t he CO(·.e le aJ. :-- (.vis o r , infon1ee1 the res ?ondent of t}1e nc:>tn re of the vi olation with ,., l i Cl J. h e was char?;e d, A verbal 

ex}lEma t i on of t h e )rocech.J.re was -;i ven. It _:.was exp l ained. that the 

iC::.ei.1'\ii ty of the com}Jl nina n t could 110 t be rev ee.l ed. If ne c essary the 

case a_;ainst the res,)OnG.ent was pr e sented by· the coG.e ~al ?<lv isor o r 

late r, by counsel to t he Regional Council, who , in a sense , stood in 

the shoe s of t h e .;J r osecutin1'::. attorney, O:J.i? ortuni t J• wa s cflo r G.ed the 

respond.ent o r · h i s c ounsel to r e but t he ev i enc e of v iol Bt i on insofar 

a s tha t evi6.enc e c ould. be made spec i fi c wi t >out rev ealing the i dentity of 

the c om} l ainant. Whe r e a v iol ati on was evi(;_ent t he r esponC:.ent was a sked 

to adjust t he vi olation by i~ni g a cer t i fi c ate of future om li nc e 

and , i n l a bor c a se s, maki ng r estitu t ion nf vva:ses due . The nt 

We.s to l d that f a i lur e t0 adjust woul d re su lt in t he l oss of h i s r i .g;h t 

to cl.i spl ay NR.A i nsi :;ni a and :t> ossi b l y in ) rosecu ti on i n t he courts. 

In c a s es of ch )U ted f a cts t he r esponc·.ent vras info rmed tha t the 

Board \ ·aul d. t ake the me t ter un C:·.e r adviseme11t and t h a t he woul d b e info n ne d of the de ci si on. Usually cLeci si ons were rna cl.e ,;_Jromp tly aft e r 

consu l tati on amon O' b oard. membe r s ancl counse l a f te r t h e r os:Jo n dent ha d ~ - wi t h drawn s o t hat t he l a.t t e r c ou l d be infon11ed of i t with in a n h our 

o r a t mo st e Clay a.fte r the hearing . _.A small :Jro_':)o rti on of t he c a s e s 

di d no t l end thems e lv e s t o t h i s Jr ornp t handli n~ . 

I f a r espondent fa il ed t o a t tend. t he hea r in 7 a de c isi on was 

made on t he r e co r d. 

The s e c re t a r y of the board_ to ok notes of s c: l ien t points which 

we r e ii.1c o r po r c t ecl in t he minutes of t he ;.1eet i n::; , ·but with on e or tvvo 

exc e,ti ons , verbe t im r e ports were no t m~de . 

The _9 r oc ec_u r e ~H fl y o·,J_tlineC:L h e r ein Vle.s tha.t f ol lov ec".. by the 

xJat ione l ComJli anc e Boc;r G. anC:_.the c·omJliance Council. Va ri a ti ons 

occurr ed, of ccmr se , afte r t he n ine Resi one.l Councils we r e crea.t e d 

(_epending l a r:;e l y U)On the chairman and o t her ooard memb ers. Fo r 

exai;_) l e , one council fo r a time C.i s cu ssed t he evi cienc e and r eache d 

i ts de cisi ons i n the .tJr esenc e of r e spondents. The Complianc e 

Divisi on, hoFev er, r evi ewed co pi e s of t he mi nut es of all Re::;i onal 

.Qounci l s wh ich had a t enden cy to bring aoout u11 i forrn i t y of pr o c edur e 

anG. adhe r en c e t o p r e c ed.en t s se t by t he Nati onal Comp li anc e Boa rd 

an d t he om~ ian e Gouncil. 

'J86l 
.... 1 30- •• • • • •• •• •• •• •• # 

A manual of procedure -:ras p repared fo r the Regiona l Councils on 

December 10, 1934. Th is was l a te r mod ified and r e-issued a ttached to 

a ~iel d Letter. (*) 

Upon a finding of vi olation oy t he }iational Compliance Board or 

later by the Compliance Council or by a Regional Co~pl iance Col.l!lcil 

and failure on the part of the res~o ond. ent t o adjust t he violation, t he 

Boa rd or Council recorcled its deci sion in its minutes and instructed 

the secretary to inform the respondent to cease displaying the Blue 

Eagle and to surrender to the l ocal p ostmaster all N~lA insignia in his 

possession. 

Gffice Grder 40 gave thA ~ational Compliance Board authority to 

"remove the :Blue Eagle 11 • Gffice Grder 79 (**) provicled nThe (National 

Compliance) :Board will ma2.:e fina l c eci sions on the issue of the right to 

display the Blue Eagle." Nevertheless all telegrams removing Blue 

Eagles were sent over the name of the Administrator or later of the 

National J.eccvery Board. (***) 

At this stage it was·· customary t n refe ~ ~1e CE'.Se to the Litigation 

Di vi sio ~1 1.7i t h the recomme:c1dation t h at legal action be tal{en. 

While the above described p rocedure may be s a id. t o have Tiorked 

exceedingly vrell in a practical way so far a s it went, due in large part 

to the high calibre of the :Board. members, it had its obvious defects. A 

respondent in the usual case had to c_ome a conside rable distance t o obtain a hearing. He was not and in the nature of thing s coi.lld not be 

confronted by his l~eal accuser and. cross-exainina tion of ,_:-:ri tnesses in the 

ordinary case did not exist. ~ter t he abolition of t he Nati onal Compli ance Board the hearing ,::n.s "oefo1·e a body that :1ad onlJr advisory 

powers. In the long run respond.e :.1t WE}.S . deprived of ro ;:Jert~l rights --

the right t o cHspla~r the insi gnia or use l abe ls -- r an official 'Tho 

had not heard the f a cts. For ··Juruo ses of a~ pPal there was no tra...7ls cri:_Jt 

of the heRring. 

Section 7 - Evidence. No strict rQles of evidence were applied 

by the National Compli c:mce Bo a rd. or its successors. Previous chapt el s 

have described. the evolution of t he ma te:ri a l L-1 a file ·from merely t he 

complainant 1 s statement plus s1mdry cor r e sponde::.ce with the respondent 

clo,:m to rep orts of field. adjusters, and , in some instances, record s of 

hearing s before State Adjustnent ]oards. 

The diff iculty of .nb taininG affidavi ts from the complainant or 

his fellorr emp lo~r ees pervades t he compliance picture from beginning t o 

end. The Litiga tion Divl sion al way s compl ainec1 t hat t he cases received 

from t h e Co 1~~) li aa ce Division V'Tere inadequately pre:9ared ~ncl. that an inord inat e 'buro.en was p l a ced on its tri a l l awyers in obatining evidence 

(*) Field Letter 19 9 (J!'ebruary 1 3 , 1 935). 

( **) March 26 , 1934 . . . 

9861 
-1 1-

that twul c1 r.tand up in .ourt . Tht' vi t? YT cf the Corrroli ance Di v i sian vns 

t hat it '.7PS i:r~ os )l€' '•' .. ~1 h.~' ~J e1 f ·)rovilled t 0 1)r enar e e a ch case as 

though' it •vere" gain.; to 00 n~ o:.; ec·· t- . f' stat.L "' tic.s seAm t o SUD I)Ort 

t he position of t l1a Com0lian ce Divi •·ion . A tota l of 155 ,102 c ode cases we r 

docketed by t:1P st. :.te !ffiA o~ :f P.s . Cnly 14 35 case s we re referred to 

the Litiga tion Division. A 'Jette r i)icture is obt a ined by elimina ting 

cases wnere no violation wa s founC:. U\'1 n investi ;."'~ tion .l.4"1 d t hose pending a t t he t ime of t he Schecht er uecision. Accordingl y, there were 

89 , 872 valid compl clint s h a"1d.led. to a conclu sion b;r t he Compliance Division a no. its fie l d off ices. (All y 1435, or c onsiderably l ess than 2% 

were referred. for liti g c=-tt ion. Ha0. the Co11pli <. 1ce Division sought to 

i rnpleiUent each file with the evidence de si1~ed by the Li tiga.t ion Di vision in t he other 88 , 437 cases, or even in the 7136 cases ul ti mate ~r 

docketed.. b' the l~at ion l Complia:.1ce Boa r d and t he Compliance Councils , 

it v10ul d nave needed a vastly l a r ge r field staff and an enormous amount 

of work would have bee!l pe rfor med that woul d have s8rv~;;d no good purpose. 

In the end, however, the Litigation Division set the standard that 

a comp laint file must c ontain a.t lea st one affidavit of a -person who 

had lr..noVTledge of the facts 1n a vi ol e.tion bef"re it noulcl accept a case 

from the Complia.11ce Di vision. ( * ) Unquestionabl y svwrn statements in 

the record of c:. case v:rere desi:cabl e to sup Jort a finding of viola tion 

for Blue Eagle remove.l on the one ha..'1.d and f or a fincUne:, of no violation and dropping t ile case on t ne other. 'iVbat wr>.s possible of a ttainment 1.-.'i th a field staff, wl:1icl1 a t its hei ght includ ed f ewer than 400 

adjusters, is another ~atter. 

Section 8 - Apueals. No specific :.9 rocedure 'ivas outlined for 

taking appeals from t h e G. ecision of the National Compliance Boa rd or 

its successors until July 16, 1934 , (**) and no encouragement was given 

responde nts to ap:Jeal such decisions either before or after that da te. 

It wa s tacitly admi ttec\. by- the J3oarcl that a-ppeals could be taken 

to the ACl P:i nistrator, ancL a few such 1ile r e .::1P.arC. ·oy i.1 im. In at least 

one instan ce the Admini strator reversed t h e Boe.r d 1 s decision vri thout 

consultation with t he Board. (***) 

After the abolition of the H~1. tionaJ. Co ~liance bo.::trd (****) and 

the tra nsfer of its functions to the Chi ef of t he Compli 1ce Division, 

an ap:)eal from the Comp liance Council's d ecision naturally was taken 

to t he Chief of tDe Co !~~ li an ce Division. Theoretically it was his 

deci sian anyhow, although he c.:. i <i n ot have the 1Jenefi t of the arguments 

ancL evidence adduc ed a t the he<?.ring . before the council. Presumab l;y 

an app eal would still lie from a decision of the Chief of t he CorJpliance Division t o t he Administrator. 

(*) 

(**) 

(***) 

(****) 

9861 

Supra, chap ter V, section 5, "Technique of investigation. 11 

uffice Grde r 105. 

Loft, Inc,, New Yo~ . J. Y. 

Office urde r 90 (La:· 21, 1 934). 
, 

-132-

Some time between June .-1 and June _14, 1934 (*) t he position of 

Assist a nt Administr0tor for Field Administration was created. The 

Chi ef of the Compl~ance Division e~o rted directly to him. Th is 

interp osed. another·· step in t he possibilities of app ealing decision s. 

r:io re or less at a tangent to t h is h lierarchy of executives nho 

could entertain a?peals from decisions -of what had now come to be The 

Complian ce Council wa s the Industrial peals Eoa rd. It was creat ed 

July 16, 1934 (**) ~1d wa s authorized among other t h ings to: 

11He a r and recommend to t h e Administrator t he proper 

d isposition of : Complaints concerning ffiA or a ny agency 

or branch thereof, esp ecially t h ose alleg ing tha t cod e 

p rovisions are desi gned to or t e nd to eliminate, oppress 

or discriminate against small enterprises, or to favor 

monopolistic tendencies; and complaints of non-conpliance. tr 

The Inc.ustri a l App eals Board wn.s its OiT!l j ud ge of \:hat appea ls it 

would accept. In the ten months of its- oye ratipn it took jurisdict i on 

in 84 cases appealed from the decision of t~1e _ Corrlpliance Councils, 15 

of which were p encling hearings on ~r 27, 1935. 

The position of Director of Compl~ an ce and Enfo;rcement was crea ted 

November 21, 1934. (***) So far a s ap9 eals are concerned it as n e r ely 

a change in title from t hat of As ist ~t Administrator for Field Administration. 

In spite of these possible steps of appeal, no orderly workab le 

procedur e Wets ever created. 

Section 9 - Development of analy sis a nd Review procedure before 

hearings - .Analysis Branch . Preliminary review and_ examination of 

unad.justed. complaints filed with the CoE1plia11ce Division was t he only 

feasible ·o roced.ure by which alleged code violations could be p repared 

for NRA compli<mce and e nforcement machinery . A number -of i r1p ort an.t 

developments in t h e code adnL.1istration ,:·:program .... of 1l}U. strongly emphasized. t he need for such procedure. 

The number of comp laints t o be a cted up on by t he Compli a...J.ce Di v-ision inc.r e a sed. t o such an ex t ent t hat it ''las incUI!lbent upon NF.A t o 

p rovide f or a n adequate method for handlL1g of such ca ses. Many of t he 

alleged vi <? l a tions ha d. been i nve stigated. "'b;y ~ffi A Sta te Off ice s or by 

Inclustri a l Agencies while ot hers we re ori g ina l c o:;:1pl a i nts fr om empl oyees 

or othe r interested p e r s ons which were unsup-oorted by substa11 tial evi t.-

dence. 

The re was a lso a n apparent :t1eed fo r L'.. cl o se coord ina ti on of 

eff ort of t he s everal age nci es resp onsib l e fo r prop e r code aQ8i ni str a -

tion , namely , t he Comp liance Divi si on, t he Na tional Compli:'ln ce :9oa c~, 

(*) 

( ** ) 

(***) 

Gff ice Cr d.e r 92 ( unda.t ed. ) 

vff ice orde r 105 . 

Of f ice Memorandum 30 9 . 

9861 
- 133-

the Legal :pivlsion and the I:..1dustr,1 Llvisions. 

By t he beginninc. of tpe sp ring of 1904 it he1d l>ecome a:pnarent 

that the success of t he coc. e s must depend. ln the final analysis on 

the methods of their admi nistration e.nd enforce1111?nt. This realiza tion 

took t he for!TI of an a ttemp t by an uffice urder to r eo r ganize the 

compli ai"tce and enforcement chiner~r of i~RA along more efficient l ines.(*) 

The urlier outlined in Section I t he respons1bi lity of Deputies in 

code adrnini strati on by stating , "from t he elate of this ureter , each 

Deputy will be responsible to h i s Di vision Administrator fo r p romp t a ction on complaints of violation of the code.s a ssigned· to h:iJ.m" ·· 

Section II of this urder p r ovi ded t h"l.t the fie l d offices of l-TRA 

under the supervision of t l1e :::'ield. Branch of t he Compli ance Division, 

were organized as a service f or a ll inClustries ;rhose coc1e authori t~r 

organi zation was inadequate to carr y out the field cont ac t :vork necessary for p roper code adrt1inistra tion . There ,,,~ s a lso included in t his 

section of the urder an r~portant statement of ?ol icy in t he follo YTing 

words, "However, it is not in tended t h.:=tt the Coi,1pliaace Division is 

to undertake the administration of all code s for compliance and. enforcement. This remains the responsi b ili t 3r of t he Cod.e Authority, the Administration l.Iember, and. the Deputy and Division Administrator for each 

code. '

1 

The general policy on pro ceclur e to be follovved L1 t h e handling 

of complia11ce and enforcement matters oy lffi.A was outlined in Section 

I I'I of t his Grder. Its purpo se wa s clearly stated a s follows: 11 In 

order to insure lJro::11p t, efficient and. coon-:.inatec action on the p art 

of Cocle Authoriti es and t heir a gents, the Co;apli a nce ·Division and its 

agents, Administration i'1Iembers, Deputy and Division Administrators, 

and the Legal a nd Liti gation Divisions''· Section III defined the part 

which each ih vision was to t ake in t he comp lia nce and enforcement 

activities on transcri:9ts and unadjusted. com_p laints subrni tted to 

i'Vashington. 

A specific procedure for hai.ldling such case s v1a s outlined in 

Section 'III A of Gf f ice ur~er 79. All transcrip ts of cases in litigation, U.."'ladjusted cases and orig ina l compl a i nts involving alleged violations of lJRA codes and agreements v-:;ere t o be routed to the Co!1trol 

Section of t he Compli an.ce Divisi on . The re sp onsibility of sorting and 

acknowledging the complaints eBd of r e turninc to t he ir sources a ll 

obviou sly e r roneous or misclire cted c onpl a ints Tias p laced in t hat 

Section. It was a lso the duty of t h is Sect ion t o jacke t and control 

all properly investigated cases and to follow up t he ca se until proper 

disposition had been made of t he coop laint. 

Briefly, the Analysis Branch was ch a ):'gecl r:i t h t he dut y of ar!alyzing all transcripts and compl.;i.i n ts refel1

reC::_ to it by the Contr0l 

Section anc. of making appropriate d.ispo si tion t he reof a.s outlined in 

(*) Gff ice Grder 79 (Warch 26, 1S34). 

9861 
-134-

detail i ll the follo wing paragr aph. 

A general reorganization of t h e CoQp liance Division was affected 

on April 1 2 , 1934 , flin order to coordinate its ·work wi t h the Industry 

Division, t h e Legal Division and t he National Compliru1 ce Board i n the 

new program for increased enforcement". (*) 

By t h is Grder ru1 Ana lysis Branch s established, the chief 

thereof reporting directly to the Chief of t he Comp liru1ce Divisi on . 

The ~Je rsonn l formerly assigned t o the Labor a nd Trade Practice 

Branches (**) of the Compliance Division was absorbed by the Analysis 

Branch , with W. M. Galvin app ointed as Chief of the Bra.."lch. (***) 

The functions ru1d d.utie s of the Analy sis Branch were broadly outlined· in Section III A of Gffice Grder 79 (****)but t he a ctua l .work 

and procedure of the Branch ,:,ras gove:;:ned by · e:x-perie:;,1 ce a.i'1Cl changing 

conditions 8.t the direction of 1e Ch ief of the Cor1lJli:uJ.ce Division. 

Due to the enormous vollline of complaints of alleged code violations and t he resultant load~ placed upon t he compliance and enforcement 

machinery of liRA, it became imperative that all complaints be thoroughly a~ined by the ~1alysis Branch for the purpose of separating the 

"wheat from the · chaff". In performing this function it may be said . 

that the ~1alysis Branch constituted in f a ct a p rimary deliberative 

agency. 

The decision as to the appropriate disposition of a complaint of 

alleged · code: .vio'lation was based on a number of pertinent factors. 

Primar.ily, it was necessary to determine if the facts submi tted in 

substantiation of the complaint actua lly constituted a clea r case of 

viol a tion. The facts in each case we re carefully considered by the 

analy st ru1d if it developed 1c:. t t he evidence was not adequate i n every 

respe ct, t ::1e ·file Vilas either returned to its source with explanations . 

as t o its deficiency or the necessa ry additiona l evidence and information was re quested and the file was p laced in suspense pending -the 

receip t of such information • 

. For purposes of coordinating adrJini stra ti ve a ction it was often 

necessa r y t o check with the Inc1ustr:r Division conce rned as t c the p resc..n t status or contempla ted r evi s·ion of t he code , or in son e instances, 

·,·. 

--- -- --------------------------------~ 

(*) Off ice Grcl.er 85 (April 1 2 , 1 93 4 )' , "Reorgani zation of t he Cor.1-

p liance Division 11 • 

(**) CorJp li<'n ce Division Hemorandum # l (ii! ovem'ber 29, 1933), proviued 

in Section I, "The Blue Eag le Brancl1 is amal gru:1at ed e.nd consolidated into the La"uo r, Trade Practice and Administra tive Branc:i1e s 

of the Comp liance Divisi on .. .•• 11 

(***) Office Memorandum 180 (Ap ril 1 2 , 1 934) 

(**** ) No te ].). 1 33. supra. 

9861 

., 

·' 

. . 

.. 

·. 
- 135-

to se cu::.·p a 1 offi c i :tl i nterpre t a t i 011 of sor1e c~ i s·!Jut o<'1 1Jr ovi >i n of tne 

code . 

If t he fil e contai ned suffi Gi ent. evi denc e to '.r.rn.rrant a ction by 

t ne Ad:-,i ni stra ti on , the analyst epa ec~ a bri eJ. d.i ge st of the Dert i -

nent f act s of t he case :..~or t he i nfo r mation of all '7ho had occa si on t o 

handl e or revie 11 t h e conpl a in t - t he Ch i ef of t he Cor.rol i anc e Di visi on , 

t he members of ~1 e Comp li ~"l e Counc i l, t he Counse l tC' t he Comp li c. n e e 

Division , t he Dep uty Administra t ors <W1d Di v ision Adni "ll st r ators and the 

Code Legal Adyisor s . 

The scop e and f unction of t h e d i gest p repa red by t he Anal ysi s 

Br anch was gove r ned by t he fo l l (mi nr st a t e:1ent of ;oolicy: 

11 as provi ded in Gffice vrdPr 70. , t h e Ana l y sis J3 r :m.ch of 

the CoP'lp li anc e Di visi on mnke s an analy si s of each 

aclj u sted comp l a int. The flli"'l c tion of t h is analysi s i s 

t o en able pe r s on s int e r e st ed L1 ~1e c a se .~ to de t e rmi ne 

:i.~o ::) tl r the ·c;e Eer ~.l c-: 1. ~e of t:1e i ssues i nvol veo .• 

The c: -sis also c o:1t a ins t 11e r ecom:-1e nc.at i on of t l1e 

0;1~_:> rn e Divisio!:. tc- t he ~~at ioD l Co:·;2!li:·.nce 3oE~. rd . 

I t is 11ot i 11tende(_ t o be o. f·uJ..l st e.t eme:1t of t he i ssues 

:i.~ L 1e evi dence in t h e ca se e. i s no t sufficient a s 

a sta er ~e nt of f a c t s t o t nP iJ."tti onal Co:-1•Jlic:mce Boa r c5. 11 • (*) 

I 

Bl~i t? , it :?as con si c1e:re0. ne cesso.r y t o i ncl uc:.e t~1 e f ol l o·;i n.:; 

poi·: t s in t hA c.i ge s t s of una dj u st ed c o:·:p l .:1 i nt s ~J re eo. 'Jy t he .Ana l -:l si s 

3r nc : ( 1) Je rti ne nt infor uat i on re l a t i vP t o 1e r es:Jonclent 8.11t t :,1e 

cor, JleL1 .nt ,· ( 2) c ode i nv0l vt:>G. 0n d 1e p ro vi si ons a l l e e;;ed t o ha vP be 1 

vi ol e..t e c. , ( S) exte11 t a:.1d nat u r e of ev i de:1 c e of ·re l~ea. i n sub stant i0.ti o::1 

of t h , coq]l ain t, ( 4) p e r iod. covered. b:r t he v i ol a tion, ( 5) re l evP.nt 

L1f or:-1atiOil n s to t he respondent 1 s a t t i tuC'.e, ( 6 ) b:tief h i st or y of ~lA 

att er.:yts a t .::d just ,.1 en t bef ore t he c :· .. se i!'l.S se11t t o D'as in ~· to , ( 7) ·:_)e r -

ti:1ei1t .1 ['. ti on r e l n t i ve t o int erst e.t 8 coru:1erc e , (8) evi de;.1ce a s t o 

G.is .J.:r o;y es :>Onde t of 3 l ue E.,_G:l A l.~ CoC:.e J£a::;l e , ( 9 ) h i st or y of :c es-

·:Jo.lc".e nt 1 s ;!~) li nnce 1.1i th PRA b efore c o6.e •a;.:,s e f f ect i V A :1..nc. )o c1 :J. t 1 s 

!) rtici ~J n i n busi ne ss f i nc:mceC:. b~r Fede r 81 f unG.s , (ln) reco :- ~e; Cl.ec . 

C.i:i. ~ o? f ,':l_ct '7 ra~1t ed. oy L1e ev i o.ence i n t 1'? fi l e , (ll) s·9ec i f ic 

reco;1nenc:.e.t i o;1 s for a ction - - r er.10va l of :bl "..lo Sa gl e , refe r ence to e:1-

force -Je:1t .s.ge:1ci es of Gov e r nnent, rr O.ro}yi ng of cg.se . (** ) 

Ac!.r:i 11 i strative uol i cv Wr' S an i:'!·_oor t ant f a c tor i n deter --:i nati nn .1; v 

of reco:·::.r:e n<3.e 0. corxp liPnc e a cti o;,1 o;,1 :r :~ i ·1t s of cod e vi ol a t i ons. Gu t -

C:. _:; e~:::a;:1 s of g r oup s of cc;.,ses a ffec t eC'. b~ ~o li c7 '.7ere t hose 

involvi ng t h e l oca l se r v i ce tracle s 2.ncJ. i nC:.ustries C:.esi gne.t ec.l i :1 

(*) Exce:L··o t fr on me:!oran.d.-.r: of :~··: l Sn i t ' l t o all As sistan.t 

Co l.L s~l s (Apri l 23 , l S34). 

(**) .~ iJO 2.:.1c. 'Lun of i n str u.cti o;,1 s t o Anal:rst s fr on \i. 1.1 . Gal v i n , Chief , 

.Ai1c-.l :rsis :Br anch (; :0\ir 11 , 1 934 ) 

9861 
~13

Adnini strati ve CJr<iers ( *) as -iJeinc exem~) t fron t "he trR.cle :practice :o;>ro -

vi si ons of such ap~J rovec]. cod.e s. In liJ.:e. ::1r:nner , ad.:: ini strati ve yoliC2' 

on c 0J1:rp lirw1ce action ag!4.inst sr.:all 8St8.b l i sh!ent s served. as 9- basis 

for determining t he app roprie,te recorurr:.end.f:tt i on for d.is:9 osi tion of a 

substantial ercenta~; e of co:r.rp l a ints su.br:itted. to the Co;n:plic:u1ce 

Division. 

The fort1 and. con t ents cf the d.icest s ~JreparecL ~' the Analfsis 

Branch cHd not chc:mge t o a"ly appr e ci c:;.i:J!.e e:dent C::.urin; the lif e of the 

Branch. Ho..-::ev-er, it 1;72.s founCl. vis ':J,ble t o nalce mino r d.eviat i ons froo 

and add itions to the scope of t he ch gests in es~'?e ct to the source of 

the co Jlaint, suspension of lC'..bels .1 d. reconnenO.ation of t he Conpliance Div-ision to the Comp licn ce Counc il. 

Du e to t:1e need for expeditiou s he..i1dling, a ll transcripts of cases 

in litig ation D.ll<l une.il.justed. com:p l -:-.ints Ll'volving the suspension of 1JRA 

labels by Code Authorities ':.'el·e ,; i ve21, whenev-e r ~J o s·si ble, t 'i7enty-four 

nour serv-ice by t h e Control Sectio::1 c-:JlO . .A:no..l;y-si s Br c.ncn. 

The efforts of the Analy sis Lr :~11 h a t obta.L1L.1:; 2.d.justr:1ent of 

inv-estigcS.ted. com ~ai s forward.ecl t o t he Co. '}J li .::-~ ce Div-ision by State 

vffices c:mc1 Cod.e Authorities nere confineC:. t o 2. so-cc::tlled 11l a£-t chance 11 

letter sent by reg i stereo. ne.il to t i:1e re S)Onden t. This letter ad v i sed 

the res:9onclent tha t · a specific cor,lp l e5nt, supp orted by evid.ence, had 

been file(!_ agaL1st :·lim e..nd requeste d t hat ~' eXJ_)lanation of his p osition as to the cha rges be furnished t o t he Conpli E!.:a.c e Division \7i thin a 

clefini te tir.e lini t. A sus~Jen se she·e t ITi t h a C!.efini te recall date corresponcling to the li:1i t spe cified. i n the 11 last c:1a;.1ce 11 letter was then 

placed on the file a..11d. compliance a ction on t he case \7as ni thheld pend_-

ing the receip t of information fr om t he responden t or until the peri od 

of suspense had elapse . 

This effort to ino.uce voJ.un r co~1pli9.nce u i thcut the necessity 

of further a ction by the Ao.E1Lli stration proved effec tive in about 25% 

of all cases sent to t he Co:.rJlia;.1ce Di vi ion~ (**) 

The conplete file, r.ri t h the c~i ge st a~1r" t he r e comnAndati ons of the 

Conp li a~1ce Division c:.s t o t he c't.isposi tion of t he case f roD El~ .r::e.neral 

stano.p oint of conp lio .. nce , was trn.nsmi tteC:_ throu.gh t J.1e Control Section 

to the Assistru1t Com1sel ned t o the code involved . The compl int 

wo..s revie·weo_ by t l.Le Assistant Co·Lmsel o.nd p resented to the Deput :,. A.d.-

mini stra tor with recorumendati ons on its le ge~ ph[>..se.s c:.,."ld fro'l the standp oi n t of legal po licy . The Deput:' Afn i:i.1istrat or t i1en added l1is recommendations, from an ad.OJ1ini st rati ve st andl.JOint , to the :;.~ecord E~.Jld. t:1e 

case was r eady for present a ti0r.. to the l.Tational Coop liance Board (le.ter 

( * ) Adniilistrative vrclers 37 (Liay 28 , 1934), X-5n (Ju..Tle 1 3, 1 934) , 

X-54 (JUlle 28 , 1934; all issued pursua..Tlt . to E~ecutive Order c723, 

(1iay 26 , 1 934 ) 

( * * ) Supra , p • 119 

9861 
-137-

r 

t he Hc.tional Cormli!"1..:1ce Com1cll) b:• the A::> si sta"1t. Counsol nt t l1P cn.ll o:l 

the Sec .e t'"1.ry of the :Board .. 

Fo1· the Jl.lr.;_)ose o.~.' coordinatin-- aCl.ninistratiw~ c-ctirm , co~J ies 0f 

the clicerts of coc~e co lJl o.int t.: ru1C.. j_'ecomn1)nclutilms r:erP sPnt to the 

Li ti ·:at ion Division (on t ransc rip t cnses only ), Control Secti on, Coord.inutil1g Jra:..1ch , and to "1emoers of the .ACl.vi sor:r Con :it t~e ( Con:pli ance 

Council ). 

An important d.evelopr:1en t i:-:1 Anc..1l ysi s :ar c:w c~1 procedure and functions 

W\'.S bro·l..1..c_;nt about b~r ~1e increc-.sing amount of correspondence ni th the 

various St a te NRA Gffices ru1d Coo. e Authcri ties. The mc:.jor portion of 

this \70rl: dealt ni t l1 Ull c-.djnsted cases uhid had been subni tted t o t ne 

Co ::> li <:-.;:~ ce Division for f urt~1c> r o.ctio:1, al thoug:1 L1 ~le l a st si:;- u onths 

of t lle existenc e cf the An ~rsi s Bra nch, a l o.r ge vol ur.1e of corre spondence dealing vii t ·1 e·e ner2.l or pl .o1. ~1ce pro'Lllems rrc:-.s rout ed. to the 

Anal:Isis :O ranch for handling . Sin ilarly , inqu iries fr oD res:p ond ents, 

complainants and o tiler i n terest ed pe r sons relative t .o w1o.cl justed cases 

filed. ;,:i t h the Cor.1p li a:1ce Division ne re ansuerecl. b~r t he Anal2rsi s Branch. 

The Crntributions Section of t·1e An ~r sis Branch uas established 

by Gffice LemoraJldun 3fJ5, IJovenber 12, 1934 . Its p ouers ;md d.uties 

were "to receive cor.1plc-.ints nade in ccor cla 1ce rri t h ..A1n.inistrative 

(Jrder !T0 . X-36 by Code j,uthori ties against r:1emb ers of trad.e or industry 

for non-pa0rme;.1t 6f contributions; to receive p rotests by nembers of 

tracl.e or inc1ustry on t hP subject of con tri buti ons; to aclmor:rlecLge and 

comp lete the record. of such cor:.plC'..ints and pro tests; and. to carry out 

the routine handling the reof in a ccordance 1Ii t h establisl1ed policies".(*) 

Because 0f time lirJita tions it is not possib le to enter into n 

d iscussion of the no r k of the Contrihc.ltions Section in this History . 

The cor.1:plex nature of its functions is ind. ica te d. bJr t he -:_Jro vi sions of 

Adnini strati ve Grder X- 36 and b~r t he fact 158 , 620 comp l c.in ts of nonpayr.1ent of assessE1ent r-md l, 954 p rotests i7e r e hancUed. bjr it. 

In ord.er to increase t he effectiveness of coml)liance adr:inistration and. enforcement a:..1Cl. to .r e lieve the burden p laced U:POn t l1e conpliance a..1d enfor~enent machinery in Wnshington, t he Ch ief of t he Comp liance Division ·on Decemb er 0 , 1934 was authorizecl to tak e all steps 

necessar;y to establish and adrJinister a sy stem of Re g ional Administration. ( **) 

Ac t i ng 

memo r a."1.c-:..112·,1 , 

Sta t e s into 

u:.)on t he av.thori tv conferred i n the above nentioned - ,. 

~1e Chief of t he Cor.1p li.'::mce Tii vi sion d i videO. the United 

nine reg ions vri t h of fi ces located. at Boston, He ':: Yo rlc City , 

( *) CJffi ce Uemor endum 305 (lJovenber 1 2 , 1934). 

(**) Lemo, from Coran li e.nce anG. Enforce me~1 t Director. 

9861 
-138-

ashin tc1, Atl a...'1 ta., Clr-:ve lanc. , Chi cc:,go , vn&ha , D2~l c.s encl_ San 

Francisc0 . Re gional :UL·e c~c0r , res )onsiole to ~1e ChiF>f of t he Co:r::>liance Di vi s:Lon , v-rer-? <1;})()::. 1 t. t?o_ .:r1. ~ o_ e legr- t eC:. cer t c:\i n p o.,.-e rs a~o f1L'1Cti ons 

within their res:Jective Re ~~ on;.; 01:1 ~Jehc;..lf c-f :TP..A. (*) 

The clecentraJ.izr.:tion r:f c o:-1""Jli:::-ncs a:>lc•. enfo:;:-ce:nent a ctivity necessitated t lw transfer of u_:l.:Ld.J u_st ed. ca_s.:, s ~J ev cus ] <io ~~e ted b:r t he 

Control Se ct iOYl o:::' t~·~e eonpli '•.l1C8 Di vi SiO~l to t :J.e vo.rinus J.e ,::.;ional 

CJff ice s ~1av in;5 jurisC:.i c t ion e ve-r t he £".0.justne:;:,t ~f t l1e coopla ints. For 

obvim.;_s reasollS, una0 justecL conLJlc::.i n ts ':J1ica ha.ci bee n ~1 :..· d. ·;:,efore the 

National Cor::t;liance Cou.:1.cil, c a s es ,-:llic1: ':•ere in a.:.1 e.clva:.1ceo. sta€e r•f 

adjust :~ eEt and. other selectec1 cases ·:re=n:e '.1el L1 t l1e Con:9 li.:mce Di vision in 'IT~ shin to ~ The :remair).cle r of t l1e C.oc! :e t e el c .:tse s [-\_n0_ ten:por o..r~r 

files D8re f or·.-re>.r G.ecl t, r) t -,18 a~J:Cl ;;n· i ;:-.t e ~~e ·_" io :r..n l Gf: ices £or action . 

.P,n c:.nalysis of the U:..lac1j"J_st PC. com:9lail1ts d.ocl~eted by the Cont:t0l 

Secticn c~ f the Co li an.ce :Di vl si·~n '.7ili ch ":'ere referred to the Re t;ional 

Off ices :::·or the period. in in~-:; Decer:J'Jer 1 9 , 1 934, sho-v:s a t otal of 

1, 40 3 such cases sent to the fielC!.. (;:_' ~1 i s :.llunber, t he analy·si s 

inO.i cat e s that l, 155 of the cor:1ple.L1 t s ne:ce ad.justeo_ b:• t ,_le Regiona l 

Offices Pll d_ the ren1aining 243 cases ~ere ::; e:1d.inc e.s of l.:a~r 11,1935. (** ~· ) 

In fairness to the recorcls of the E8giona.l CJL.' ice s, it shoulcl be pointeel out at is tiDe ·that t he 243 uns,Cl.j u.sted referred. cases represented 

comp laints, tne r.1ajorit;:r of r:rhich 1e Com) lia:n ce Division had ·o revi ously be en unsuccessful i!l c..<ljust ing over E'. l ong p e r ioc1 of time. 

SwnT:lari zing briefl_ r, i .t c c:.tn 1Je s tated. t 11.c:.t the C:. ece~tr li zation of 

compli c:w1ce adnini stre .. t i on <'I1CL enf orce ~i'~e:c1 t \7c-"s r.ar:::ecl i np roveElen t over 

the old r.1e tlwct of l1c:u1dling unadjusteo_ co:npl .'J.in t s . ~1e average lenc;th 

of thie necessary t o bring about djust e~1t of com:pl.s.i:r.ts or to initiate 

action on une.djusted c c-c ses vras substP_nti a ll3' red:tceC:., ::>.nd a lthough it is 

i mp o s si ole to judge accuratel7 the ~creas d efficiency clue to the 

closer conta cts wit:1. loca l conc~ itions and liti ga·Gion :p roceedings, it is 

subn i ttec'. t hat the decentr.:tlization of compli c:.n ce activity we..s i n the 

best interests of so'l::. .. 'lo. a d:.lini st:..·ation. 

(*) l1IemorM<lum fro:11 L. J. Lnrtin, Cl1ief , Cor,1pli:;.n ce Dtvision to 

ReGiont."..l DirPctors. (Janua :;:·y l , 1935). 

In lillA Studi e s Sp ecial :~l.1 i ts ~1orl;: Lht eri a ls Fo. 85 

( **) A table ,'! ir. ~ statistical c3.ata on cl::ete o. cases referred to 

Re g i onal CJffi ces is incluc':.ed L1 t he a~)pe~1d ces . 

9861 
- 1: o_ 

Se ction 10 - Ref e~"l ce 0f ca "'rs fo ~ Li tif:e ti nn . F 0\. C''ses ~'e e refer:·ed 

:(or litigation, p rior to the o ctr bli sl ~1 ent o: t i1o Sta t e Com·Jli[l.nce Q+'fic es 

in Jc.nuory , 1934. This rr<'.s due t'i. y to the f a ct t :1a t it hacl been fotmd 

oossible to adjust most cc..s es b·r ·administrc::tive p r oc 8dure . Th en too , t h e 

ComD'liance e.g enci e s r·e re inadc::qua t eJ.·r p r eprtr od to clev elo,) prope r cnse s 

for l'Cference for li ti 6 v.tion. ·( *) · • 

The State Compliance offices ,.,,_, r e ostc:tbli shed in J anuary , 1934 but 

there \7[' s no immediate c'w.nge of procedure in r efel1 ring ca ses for li tigation . HoTiever, Bulletin No . 7, r:hi ch n v.s issu ed shortly v.fter the .ppointment of the State Comuliance Dire ctors, containec, a sto.tement of slightly 

stronger p olicy in r egard to referri ng cases. to the enforcement a r; encies 

of the Government . This p rovision of Julletin ~- o. 7 i s quoted a s follo\os: 

liThe s'. stem outlined. b"' this r anual i s 0.esi._: ned to insure the 

sp eecl:;r elimination, "Jy c.dj ustm ei ~t , of such no ncomp lianc e as is 

due to misunderstanding, and t~"1 e p roJl1,_.-; t p rose cu tion of e.ll ca s e s 

of Hilful noncompliance. Thro-.1£h the vc..ri ous industri a l acljustment asencies c:-.nd the St;_ te Directors, all Je rsons a:;ainst 

11hom complaint hc:1ve been lo cige 6.. r.rill be g iven am le ~p ortuni t:r 

to demonstrate the ir de sire to coope r e.te a nd to mnke restitution 

for any violation due to misunderstandinb or i g norance. But 

cc.ses of 11ilful _viola~ion, rrill a lrrays be for':7arded promptly to 

;Jashington for reference to t he ei.:forcer.1ent agencies of t he 

Government . tr (**) 

Soom a fter the inception of t l1 e Sta te. off~ce svstem, the volume of 

unadjusted complnints ~~ferred to the C0mpliance Division began to 

steac3.ily increase . This increasi i:r.. volume l'as p artly clue to the fe.ct 

the.t many industrial a djustment 2. en~ies l1ao . . sta rt ed to functionl This 

na s particularly true \Ti th r egarci to t~:;.e Cl eaning · nnd Dyei ng Code Authori t~r nhich Has nencli ng i n a const a 11t strea'Tl of case s involving alleg ed 

violc.tions of the minimum p rice p rovisions o.f the co oe for that inc1ustry. 

In fact, comp lai nts nvo in ; t_1i s coc"..e constitut ed a majority of the 

cases received b~r t :1e Co i:l~J nce Bon r C c!.urL1t; t he.t :o e riod. 

Out of the l a r .> e nur:1b e r of or.J. ~J : i nt s r:~ec. to t :1e Compli a nce 

Division, only a fe .· \:ere consi cle re~:l aC.e qlw:te for r efe rence to the 

enforcement agencies. In a l a rge numoer of cases t~· e complaint i nvalved a questiori2.ble or· une·1forc cable ~) ro i sions of the code . 

The outstanding :problem, houev e r, nas that of securing cases u rope rl ~ lJreparecl for li ti.ga tion purposes. Uo st of the case s r ece i vecJ r 

t he Corn) liru1ce Division Tie re c;_efi ci en t e.s to evidence of viola tions, •I 

et c . The main cauQe fo::- the h i gh perccnt B.tc;e of oorl~r p repar e 0. cas es 

can be laid to the fnct that the fi el c·. offic es ·ere 1..mci e rstaffed a nC'. 

untrai ned. in the t n)e of investiGation necessa r:r. 

(*) Rerer to Cha~ter IV, suor a . 

(**) Bu ll e tin Eo . 7, p . 7. 

9861 
-140-

There Has another out standi ng f[w_l t ':":'i th the -o rocedure. of ':7hi ch the 

fi elo. ag encies De re in no '7a ~ re.sp onsi bl e. It Has b een pointed out 

el serrhere tha t a ll unadjusted co m· lai n t s n ere r eferred to J,ash ~ton 2nd 

that i n t he bvent t l1e Compliance Di v i siO'~· we,s 1L11o.bl e to effect adjust-

; ments in such cases they '.7ere submi ttec1 to t h e J.Ta tional Com:9li ance 3or.rd 

for appropriate a ction. Since complc:-.ints could nl : -be refe !'rec1_ f or 

li tigC1,tion at the r e commei1dation of ~'le 3oarc3., a 11 b ottlen·e ck " ne.s 

creat ec1 which was re spon si ble for a g reat arno·ant of delay in the p rog ress of co,ses. In vi er1 of the l a r g e volume o'f UJ.1adjuste0.. ·com!)l a int s 

it ;;;1n s a ph;{ sical imp o ssi bili ty for t he :Soa ro_ to handl e ail' of- t b.er.n 

-p romp tly . 

These delay s ane. l a ck of o.ction from -;:e.sl:ti ng toi1 l.' e re bring i ng i n 

man3r protests from the compli a nce agencies. The re Fas a tremend·~.us 

amount of p ressure being brought upon the compli ance agencies b3r both 

compl a inants and com:peti tors. These a g encies in turn ·:rere insi stil'lb 

that the3r be given stronge r supJ.lOrt from tlasliing ton by having the ir 

ca ses· acted upon p romptly . Inc1ustri e.l Ao justment Ag encies n ere es:peciall:r critical of t he l)roced.ure in ~~ sllin ton an& in man. ' instanc es 1

.7 ere C._eman ding t[_lat t h eir c a ses h.e imnedi a tely :;.~e ferred for li tigat_ion. 

It 'I'Es apparent tha t the program n oulc:L b e' s e riously retarclecl. 

UJ.1les s these many sh.ortcoming s in t he p rocec3.ure n ere eliminated_ or 

g reatl3' i mproved. Consequently, t here ·nere a nuinber of i mportant o:eveJ.-

~pments: ~ made in the rocec~ure beginninG t l.1e l a tt er part of i.,iarch, 1934. 

Unde r date of Harch 26, 1934 a Liti(Sation Division nas est ablished 

to perform the folloning functions: 

11 (a) Coordina te all F:'i.A litigation. 

(b) Examine ailo_ ~evi e1.7 trnnscri:pt s of all c a .s e s tu1~ned over to 

the courts. 

(c) 

(d) 

(e) 

(f) 

In the name of the Department of Justice re~o are a..J.cl c2.rry· 

through li tigo.te d_ C13.ses. 

Furnish informe.tion o,t a11 r time on t h e e:s:act status of 

li tig EJ.tion on any }JOint. 

Present case s to the lJ2.tional Comp li ance 3oa rd f or its 

recomrn endc71.t.ions on "Jolic•r a:no. c.is-oositiori . - ., - ' 

L1ainta i n close lied son ·:.·i t h t>e De!x:trtment of Justice, the 

National Co liance Boa r&, t :1e Indllstr? Di visions ( 1l'Ough 

a ssistant counsel), t he Compl i a nce Divi sion and the Offi ce 

of the First Assi st o.n t ·Adji'li ni strc:-.tor, t o ip.s-ll.re coord.L1at ion 

of com-v li o.nce a:n(. enforc er:1 ~1 t eL orts. 11 ( *J ... 

Th ere had. been a Ce ciCl_eo. neec-:. for speci ul i zed. att ne~r s capabl e of 

preparine ca ses a s ·.-·ell as [.\s si stinG the U:1i t eo. St ate~ Distr ict n.ttorne3rs 

in ~) rese ting t hem i n the Courts. ~1ese ':'7ere the :pri ncipal d.uties 

a ssi gne d to the Li t i gation Divi io ~. 

( *) Office OrdeT l?o. 74 , (i.:E'.rch 26 , 1 934) . 

986 1 
Sh ortly 'ft e r the e stc.bli sh:-1e11t. of tho Lit i . ., t i 011 Di. v isi on thoro 

'Ia '=' n.r"othe r imp ort0 nt dev e1.op:1ent iY'. t'1e ::_J r ocec3: r c . Bv Ad.rnini st :-> ci v e 

0 ce r 1-o . 14 datec~ Ao r il 6 , 0~"4 , .Bull L: ti..1 ·o . 7 •:::tr: 'lT'lenc ed as follo'.' 

"F . Refe r e nce To The Di st r ict At to r ne:r ~ Th e Stat e Di tor . If 

['.t env time t hG St C~ e Dire ctor i ,... convinc ed. t 1utt the f o.cts r e lc:>t i ve of 

to a. comp l aint conc l · "> i vel y estnb ~i sL e viola.t ion nhic!1 t e r e ..... -

.sp onclent sh o . s no C:.i s•Jo i t ion t o cor1act o r c djust , t he St a t e Di rector mo.•• i mmoCI.i f' t e l y r ef e r t l1e 0r: +, i r o r e cor c:. i n t ;le case to t he 

a~J. ro-p ri ". e District Attorney of i; ~ e Uni t ed Stc.t es for E'.ction 

inst ead of t o the tion l Comp l i :·nc e Dire c t or as provi ded i n 

... a re.b raph D. (Pa.~e 1? above) • \t nonev e r · a <' sG i s so ef :. ed. , unde r 

t his pa r agr ap11; the St c::.tc Dire ctor r7i l l inf o r : th e r espondent of 

such r efe r en c e an d l"l ill i rmn ecliat e l y trcw:1smi t a. compl ete tra nscri p t, 

i n t rip l i cate , of the en tire r eco rd of t h e c a se to t he Control 

Sec ti on of the Comp liance Di v.i si a n of ~- .R.A. 11 

Th e sc::me Ad.mi ni st rr.t i ve Orde r ut ~J. i z ed Code c.m ~i t i es t o r e fe r 

cc:>ses to Di strict Att o r11eys through t he approp ri a t e State Dire c tor. 

On Ap ril 8 , 1S34, the Adm i r..i ~.s tor i n eJrpl a i n i ng t he a bov e a c t ion 

made t he follm: ii1g o~ ic l st a.teme··1t: 

"Here tof ore , it has b een nec essnr:r, n orde r to coordina t e t h e 

A<iministra tions litiga ti on and to avoid t h e i nstitution of n ea k 

or u nf ounded cases, to hav e a l l c ases r ef erred -to Washi ngton for 

r e comm enda t i on s b e fore lJr oc ee cii nt; s r.ere st a rt e d : Han , honeve :-, 

t he field ag enci es of lffiA a .n d of t h e Co c._ e Au t ho riti e s h e>.v e ha( 

suffici ent actu nl expe r i ence to j u stify si mnlica tibn of the 

p rocedure . "( *) 4 

Th is n en procedure ,-ro.s to be e f f e c t i ve i n t en ~c~ s L'.f t e r t h e i ssuonc e of the amend.mer: ts to Bu lletin Fo . 7 . i·.:ea.;:mhil e , h o1rever, St a t e 

Directors and Coo.e Au t ho r i ti e s ·,re r e r aque r> teo. t0 srJ:c. i mme0 i c..t e l y to 

the Control Se ctio. , Corn•1lianc; e Di v i ci on ·c;,l l ca se s su i t abl e for li tiga t i on. 

The c ase s s en t i n to rye.s!1i rrg t on .t cor:.pli.:::.:Jce '.'i th t he se r equ e sts 

':'e re co cl{e ted by e Co n t rol Secti on ~.i:. r ef f' r r-·3c. t o t he Litig a tion 

Di ·i si an f or furtl':.. e r actio:c. . 

~ Ap ril 9 , l S34 the At 7 Gene ral dire ct e C a l e t t er to Unit ed 

·Ste.te s Attorney s i n \:h ich h e authori z e6. th ~ to a c c op t case s submitted 

by StE' te Direc t o r s ().iX1 , i f i n i r j uc'.Gment such a c-t i on ' tas nar ran ted.·, 

to i n s7 i tut e l egal p ro ceeding s i n tl-.:. e m of a sui t in equi t y , o:r 

both . \ **) 

Th e pr~m y r eG-son fo r this cl:LI:.,3G i n p r oc ec·u:ce rr&.s to e:;:-p e o_i t e en-

~orcem ~: t p roceedi ng s o~r l e s sening t~1e : 11 oott l e ne c;: 11 in 'i7as ~~ ric; ton . 

( *) Rel ease No. 4. 293 , Ap r il 0 , ~), . 

( **) Copy of l e t ter f r om Home r S. Cum;·Ji nt:;s, tto e~ " General to U. S. 

Di strict At torne:rs, (April 9 , 1 9 :..54 ) . At t ;:\ che( to ?i e l C. Letter 103. 

9861 
-142-

There nere other benefits, ho':"rever, to be derived from these cha.nges. 

Tht: p 1·ivilege of deo.ling G..iroctly '.-:ith Dist:'ict Attornezrs afforc_ed the 

State Directors tl1ei r first real ppol~tuill ~r to l earn t l1e requisites 

of a ~p ro pe rly prepe1.red case . It also gav.e : them a better insi ght to 

i-:JA 1 s legal status. 

A letter dated April 27, 1934, from Chief, Field 3ranch, Compliance 

Di vision coi1tained ~1e first concre te information gi-v-en . t he Ste.te Di rectors r elative to the p repar a tion of cases :for enforceme11t proc eeG.ings. 

In thi s l etter the Sta te Directors ne re requested_ to neigh t !1e folloni ng 

considera tions before refer:dng a case t? the District .At~ol~ney: 

If]_: FDether the violation is clear ancl flagrant. 

2: T"le ther t he . case ca n be effectively proved. 

3: The natu1·e of the concern trhich is alleged to be violating, 

·whether it is large or small~ Proceeding s e""gainst l £',rge 

concerns rrill bernore.effective than tho se against small 

enterprises. 

4£' Tihe ther tl1e [·J ctivi ties of tl1e concern are in or affect i nte rstate commerce in a mo..nne r '.:i"h ich can be elearly proved. 

5 : The effect of the violat:'..O l1. upon ge~1eral conditions in the 

trad.e or industry. 

6: The general feeling of the comnruni t 3r in regard to: 

(a) The Recovery Proc ram 

(b) The CoC:.e :9rovisions involved 

(c) The particulc=1.r concerr: com1Jlainec1 against 

7: VT'De ther removal of 1T:.U~. Emblems alone n oulc1 have the cle sired 

effect. 

8 : Proper ep~rati on of t he cases r eferred to the District 

Attorne rs is l1alf the battle. If possi le, the record referred to t he District Attorne r sl1ould contain the necessary 

document D.ry evidence to estnbli sh violations. In aa;:.r eve11t 

it ·shoulc1 conta in a careful descrip tion of the violations 

E1.nc1 a complete statement of the evidence which is available 

or. i7hich ·nill be availa:ble to establish violations. 11 ( *) 

At the same time it na s e);.--_plainec1 t hat it rrc;ts not ecsential that each 

of these co:c'! sidera.ti ons be resol ve c1 in fcwo r to prosecute, but t l1at they 

':!e re imp ort"c n t considerations ,-,hich sh ould effect the decision. Further, 

the St a te Directors 1.: ere urged to call lf.POkl their St ate Acljustmen t Boards 

for recommendations in doubtful cases. \ **) 

In l':iay , 1934 the State Dire ctors u ere furnished ui th a form to f ollon. 

in :) re~n ril'lg the (:_i g e st to be Sl..'-bmi t t eel.. n i t h a ll c a s e s refer reo_ to Dist r ict Attorneys·. The c"..ig est co n taine c".. t l1e f ollowing pertinent i -nformation: 

(l) 

( 2) 

Facts as to respondent: (Size of establishment, financi2.l condition, nature ~f business, etc.) 

Facts as to violation: (Co de provi sions involved, nature of 

evi dence , ex tent of viola tions, efrect of violation on com:pet ·i tors etc . 

( *) Le tt e r from Ch ief, Field Branch, Com-oliance Division to St c:.te Di:L~ectors (AJ)ril 2? , 1934) 

( *~) Ibid, P • 2 . 

~8 61 

. ' 
(3) Hi stor·r of ct:'..se : (At t enp t s a t adj ur-tment , Dttitude of r e s1)0i1-

den t, s e r iousr.esc OJ cr s e , t::tc . ) 

( 4 ) Evidenc e of i nt e rstat e com e rce . 

( 5 ) Informati on s to c. s-r a~r O.J.. Bl u e .ua _,l e . ( *) 

Ad.r.lini st r ati e Cr e e r X- 14 con t a inc c. t he u r ovi sion thE' t " aen t he 

State Dire ctor ferr ec~ a cc s e> to the Un i ted. St a t es Atto r ne , a comu l e te 

treJ. scri p t, in t r i p licate , s.10uld ·be ir'li!1ecii tel~r trD.nsmi tted to the 

Control Se ction of t he Cor'lplia nc e Divi sion . (** ) 

.1. en transcrip t s Ti e r e r e c e i ved i n t i10 Control Se c tion they ne r e 

!~e ea. , g i ven a c ont r ol numb e r c::.r1 '. r ou t ed. to t; e Anal ysis Br anch of 

t he Compliance Di ·i sion. The p:roc eaure b:r t!1at brC1 ;:.. ch ha.s b een descri be d in t h e p receding s e ction . 

Soon a ft e r t he Sta t e Di ::..· ecto s .~ e aut h or iz ed to refer cases dire ct 

to District AttorneJ s, t he Complia:1C e Divi sion in r evierring the trE'.llscrip ts obse rved tha t some of t h e off ice s n e r e not u sing p roper ca r e in 

mc>l;:i ng sucL ref e r ences. In one inst a n ce , f or a n e:·amp le, a ca se involvi ng a n e lleged viola tior: of the minimwn p rice provision of the Cl eaning 

and D. eing coc1.e ':las refe rre d by a St c: te Dire ctor to t he District Attorney. 

At ti1at time no mini r.ru1n p rice · ha d b een establi s:ned :"or the loc~J. area 

1hic!.1 included t he city 11here t l1e JOndent Tias located. Obviousl r such 

a ca se coulc1 not be successfull3r litigated. The re 1.re re other insta nces 

of a similar nature, but as t h e prog ram p r og ress e d t h e State Off ices 

i mp ro ed g reatly . in t h is egard~ 

Th e re Tiere e. l e.r g e numbe r of ca s es refe rred t o District AttorneJrs 

'~l li ch i r:vol ved. small or sub- l!larg ina l ope r a tors. In t ile lett e r fror.1 

Cn i ef, Field. Branch, Cor1pliance Di vision to a l l StR te Dire ctors, da t e d 

ril Z1, 19 34 , (:p viousl r quot e d. in this secti on) it rras }Joi n t e d out 

that enforcement p roceed.ing s a;::,a inst l a r ge establi sl1ments Tiould be more 

eff ective t han t .,1ose a :;ainst small ent e r _J rise s. A clea r policy on t h is 

p oint, a o . eve r, • a s neve r det e rmined o.nd it 78,s r e s·:)onsi bl e for much 

criticism 6.ire ct eo a t the Adr.1ini str['.t o r 1 s en:f o rc eme11 t ro ram~ 

Aft e r the Sta t e Director'' n e r e autn o:.:i zecl t.o snbmi t cases <iire ct 

to Di sL ict Attorne~ 's e contir.ue cJ. t o oe c. l <.rse number of ca s e s ref e rred. to ":'lasl:i.n~ton . Lo st o:f these "':' 3re submi ttecl. to the Comp liance 

Division f or f u rthe r tt e·:-~p s at ac:j .L st :-Jen t or r m:1 o7o.l of lJRA insi.:;ni a . 

From t he te in ~ the re '.":as a n e.<Jpa :>:"ent mi sunC::. e rstancUng bet:reen 

e .rious D.:. i sion of iJl.b. as to t lle :~)a rt ea ch na.s to pl ay in the 

com]_J J.i anc e r ··. 0. r:. f0~:ce le nt ·o < ;n . As a re su l t ~l8 e Tia s a l a ck of 

COO~)er;:t O.l1 b e ':, .. :eea t !.1ese i_ si ;: , '.":'hi ch e.t time s rov d O.etrimenit a l 

to t l1e roc ciu . ::Tor inst2.i1ce , t~1e CoJi1plia nce e n d. Li tigo.tion Di vision s ha d o.i f l i cu l t ;· i c? :..~iving at e.n unde rsta ndJ nc .::.s to u hether the 

l atter sho l ei settl e or a djust c;:.se s '." i t nout the :_J rov l of t he Com-

:pli anc e Co,·.ncilo I t Tia: ~.lle ed that the Litigati on Division eff e c t e o. 

c..c'.just ments in s ome fe-:-r case s that C.i cl_ not conform ·::i t h the 8.G.j ustment 

l')r oceciu r e of t he Co!np liance Di v ision . Confe r enc es '.·ere held. betueen 

( *) See Field Le t te r 111 (VIay 17, 1904) • 

( **) The procedure for hancUing t :.:.:...nscripts Fa s s e t forth in O:Pfic e 

Order 79 (!.'arch 25 , 1934) . 

9 861 
-144-

officials of the t u o eli visions, but it is dou-o tful if a clear "Lmd.e rstanding uas ever reached.(~) 

TherG 17ere similn.r mi sunC'.e:rst,_ ndi:n. s ,behreen the Cor.1pli a;.1ce Di vision and the Industry Divisior.s rhich tenC.ecl to r e0 uce the effectiveness of the p rocedure. i.;1:1.ny of t l1ese , h oFever, Yle:L·e ironed out ·i i.: t i1 e 

l a.t er st a[;e s of the prog r cm •.. 

In at temlJt s to solve t he prob lems just cle s cri bed t'.7o importe.nt 

stelJ S .n e r e tolcen in l et te 1934. Siric e there '!.:as a l a ck of coo·oe r ation 

bett.reen the V8.rious <ii visions of RA as '.7ell a s ·be tTieen :;_ru a..-1.c_ t:1e 

enforcement ag encier of t he c ovorrunen t, it \'as· obvious that there uas 

ne ed fol~ someone in position tc; coordinate t h ese various functio ns. 

As a result, on l,;ovemb s r 21, 19:=->4 the Office o: Dire ctor of Field Ac_-

mini stra tion and Enforcement VT8.s e st aoli shec.l for t h is purpose. ( **) 

In orc1er to incren.se the ef :f ecti veness of · comJJlia nce adinini strati on anc_ enforcement a system of Rec; ion~1 Ofiic-es ~1as e sta blished_ in 

. De cember, 1934 • . Nine Regional Offi·ce s r.e re set u:-_p ·.:l.t ct'rateGiC :points 

throughout the couJltr r. A ret;iohal Director nas· p l a cec. in charg e of. 

eo.ch office '.7i th. authority to r efer c ases to ~!e Un ited States Attorney 

t h rough the Li tigatio:n Attorney f!.ssit;n:e d to the :Reg ion. 

After Februn r y 2, 1934 Stat e Dire ctors ne re not }Jermi tt ed to refer 

cases direct to District Attorne;;rs. Instec-.d they ue re rec:_uirec. to submit them through the J.es ional Dire ctor and. Litigation Attorney for t h e 

::i.teg ion. Since Field Letter lJo. 196 stf..:'.. te ;:. v e r y clearly t he ne~-r procedure for the refere nce of cases to Unit e d Sta te s Attorne:-s, it is 01:oted 

in f u ll: ( ***) 

11 1. Reference of c a ses to Unit ed St a tes Attor::wvs: 

A. :Sy Stl:1.te DirectorsIt is desi rc..bl e to h ave . D.l1c.djust ed complaints heard by the ::.-'e:.;ional 

Compliance Council so that if p ossibl e the violation can 'be afjusted 

'i;·i thout court- <~etioi:. · It i s a J_ s o cLesirabl e befo r e a ca se is l~efe rred 

t o a United_ Sta t es Attorney fol~ pro secution t :1t: t the re s:po;.1 d.ei1t 1 s 

Bl:ne Eagle be r emovecl.. if he i s d i spl c .. ~ring one a nd such a ction r:e cessitat es a earing before t he ::ie.:;iona l Cow1cil. Simila rl-, , in tl1ose 

c as es in nhich the r esponG.en t does not d.is~Jl r t he ·Blue EB.G1 e , but 

(*) See Memor[l,ndmn of 111 eetine h e lci i n ::r. •: Xn ~ht 1 s office, April ' 

1 934 - a l's o l.iemo. from A. G. -r :~ni: l1 t to :-3 l ackr.rell Smi t l1 d.ated 

Au ril 33 , 1934 . I n l'rtA Stuclies S'oeci a l E;~h it s 7ork Hc.terie.l ~~. ~ 

( **) Offic e L~emo. ro. 309 (l-ovemb e r 21, 1934) • 

( ***) F i e ld Le tt e r 196 (Februa r y 2 , 1935). 

9861 
- 145-

-,here removal o. the ri.-...h t to c1__i s·)la~r it n nci. con sequent ·)ubli city 

·:ould be cff0ctive , a ltcnri:l,"; "".:>·- the Co•mcil '. ould also be cesirable . The normal p ractice Pil.'- therefore be a reference of Ul1aCljusted complaints to the !:e{~ iol n.l Office for D. hearing b:r t 11e 

~eg ional Compliance Council. 

In special co.r,es -~ tere ::.c.justme!·l t i s im~J o ssi 'ol e or unsati sfo..ctory 

C? nO. 1'l1e re i mmed.inte conrt ['.C tioi i :1ecessar:r, the St c:.te Di1·ector 

should refe:r e cc..se o.nc-:. the ?ile to t he J.ec ional Office ,..,i th E1. 

request that it 'u . trans111i tted to the Li tig.::.tion Counsel for the 

~eg on for reference b;r m to the F~-:r-)r :p ri ate Unit ed Sta.t es 

Attorney. The State Director sho1.110. also st.:-.te .1~1e :1e r the respono.ent di sp a~rs the :nue Eng le an( '7hethe:r e lwarin~'; anc_ depri ve.tior. 

of the r i :;ht to C'.islJl aJr the Blue ::;;El.e;le before refe rence to the 

Litigation COlillsel i s desirable . ~£le Li tigr.'.t iol1 Coun sel n i ll e:-:-

2.D'l i ne the file aLd. i f he d1G. t:w 3.e ··iona l Director c-:..eci rJe t'1a t 

court action :prior to a Compli c.:1 ce Counc i l ~1earing i s aC:.vi s<'.ble , 

he \"iill r efe_· L1e case to t:J.e c.:)_:_)l"O:_;J ric:.te United. Sta tes Attorney 

if it is reac~r ..:'or prosecution. The Litisation Counsel ITi ll retain or 1;re:9e.re suffici ent evidenc e in the forr:1 of cop ies of 

affi cl.avi ts on IThich to ·oa.se a heari ng by the :ilegional Compli ance 

Cou:1cil e.nd r e.:.1oval of the Blue Eagle in the evel1t that such a 

heC?.ri ng is helC:.. He nill a lso e.c~v i se t he St e..te Director of t~1e 

:reference to t1le United States Attorney. The above instructiol1S 

to tl1e Litigation Counsel are mll)l)l ementary to those ev io us ~r 

issu ed by the Litigation Divi si on ancL CJ.re not i ntended to supersed.e t he latt e r. 

B. B~r ?egional Dire ctors. 

Regional Dire ctors rrill conto.ct the U:1i t ed St a tes Attorney throu.gb:t 

the Litigation Counsel for the res";_) ec tive Reg ion. Unadjusted_ comp laints in Hhich court a ction i s t lwught desira ble by t he Regional 

Dir.ector shou ld be refe rred b;)T h im to t he Li t i g ation Counsel n i t l1 

a r equ est t hat he , e.fter :p:!."Ol)er:J-2' p r e::x:.r i ng ~.1 e case , refer it to 

a United. Stat es Att or:ne~r . 1.- ormall .r , n ce.se should not be so 

refe rred until a fter a he<'.ri ng b~r the Regional Complic:mce Coun.cil 

es eci ll r nhen the re spondent c.".ispl a:rs the Blue :Cagle . I n c ase 

of u .. nresolve(l_ disag reeme11t bet'.7ee!1 the Reg ional Director anC.. t he 

Litigation Cm . .msel as to whethe r a )i: :i.~ ticul ar ca se sh oul c3. be r eferred to a United State At to :c1e:~ , t!1e Reg ional Director should 

re·oo rt the mat t er to the Ch ief of ti:1e Con1)liance :Di vision. 

C. Publicit y . 

It i s imoortm1t thc.-..t i l1lf:1e6..i ate e.nC: ce.:lefullv --:Jre,)ared ·oublicit-r be •• .1.: ... ..., 

g iven to the refe r enc e of c:_,se s. to U:1i teO. Stc:-.tes Attorneys and_ to 

favorable court c'!.e ci sions 2.:'1 C. court a ction• The Li ti gatio 1~ Coun sel 

e.cting \Ji th t he .~, :; ion~• l Di l·o ctor ano_ the vari ous Sta t e Directors 

ITi ll prepare anC'. g ive J?Ubli ci r to a reference of a C<'.se to ti1e 

Unit ed St c;.tes Attorney a:nC.. to sub sec-•.uent fCJ.vora'Jle recisi ons and 

court a ction after obtai ning t~1e a:p~)roval of the United States 

Attorne~r is offici v. ll r resp onsibl e for t he ::,>rosecution of the viole.tion, it is nec essary to secure his ap:p rova l of publici t :r con9861 
c e :n.1ing tha t af.r:lect of the CE\se . ColJi es of a ll such Dublici t-; . . 1• ~ " 

lCulcl be {; ent b:·' P.eGiO:tlal DL~ ecJ~o s. aJ.i State :Dil~ectcrs to t l:e 

Co orC:.inating :Sre.nch, COE!plia n c; e Division .'' 

Ti:1e J. _r··~ crc1.ot ec. i j1stru.ctions ren2.ihed. in effe ct ·o.ntil the close of 

CO!IF)l i a:--; ce r.cti vi tis s. 

Se ctio:-1 11 - CoJ;J.tribu~io3}; Sectiun. A Co ::. 1trilJutio~1 Sectior: ·;E.s se t u:·) 

L1 t he Co rnpliance :0i vi si ofl , Jl...,_Yle 4, 1934, ( *) to ~le ndle "all m2.t te rs 

~J rtail!. inz to cod.e co:1 t ri bu~io ns by me nbe J.~s cf i ndus try to Co de Aut ~l ori ties". J. E. Peebles m::1.s appointed Chief of the Section. 

The :?0\7er·s and duties of the ctio~1 1:.'e re more particulr.rly c'L~­

:s:ribed in Office 1-.Ier:!Orf.i.r.ld::.JJTI l~O . _305 ovember 12 , 1934) s.s follo~s: 

"To r e c eive coErolaints made in accorc.e..r:ce n ith Adr:ii:1istrative J , 

Orc'.er r:o. X-36 by Cocl e Authorities against merJbel~s of trade or 

L 1c.ust ry for non--)ayment of contributions; to rec eive ~9 rotests 

b;r members of tracl..e or inci st l·~r on the subject :~· contributions; 

to ack no\7led.ge an(_ complet e t he recorcL of sucl1 comp le.ints o..ncL 

l~otests; a nd to cc:.:"r-;;r 011.t the routil'2.e ha:ncLlL1g thereo:' in 

accord.ance ~-rith f~ tc: blished polic ··" 

The same memoranc:.l..U7\ authori'z e. c"'t. 'tlle Section ''to c c:.ll up on the :o ·J ro~:> riate 

In .u tr~r Division -,~ le Eeve:., quest ion E <.mC::.e:r a particular co 0.e 11 arose. 

A-u.t:Cw r i t:r for mc::2: ing fiad.ing s of c'.ef r. ~ t o~:: coC:.e contributions ":la s 

g i vert to the Section i r. an unnurahe :-e 6. special memo re.nc.um ated ~· -rembe r 

16 , 1934 , fron ~7 . Ao Eo.rrimB:a, 1\.. mi ist :.. at vo Officer cf tl1e Fational 

L1c-:.ustrial Recove r 3r JJo c!.l'CL to 1. J'. I-.ie.rtin , Ch ief of t he Cormlia:..1ce 

D_i vi sian. 

"Tlhene7er the re is a finc:ing b;y the Chi ef of t he Compliance Di v ision os:· by t he Cor-trilmtion Se ction thereof ~1c:. t en;/ pe rson is in 

defau.l ·c _in his o bJ.igation ( cl-S C: .. efi nec3.. i n Executive Ord.er J.To. 6678 , 

~'J l~il ~. 4, 1934, a~:d .A6.minist1·ative OrC.er X-36, L~a~r 25 , 1934) to 

mal:e ]JC?..yment of a contribution to a CocLe Au thori ty, the Ch i ef of 

the C01npli a nce Division may notify such perso:1 t ha.t he ho s be an 

delJri ved of t he right to C.i splay any Blue Eagle or othe r ~~ . R.A. 

Insi gnia or to obtai n or u se ~T .R.A. ls, EL1c: me::;)' notify tile 

a.p-.Jro-.;Hin te Co de A~_t ori t :r to rri thholc't. the is sua.nce of l abel s to 

such pe rson. The Chief of the Com~J li c::nce Divi sion , ·::i thout h ec:- ring 

or recom.r~ encl[' tio n r the Comp li a nce Cou..:'1 cil, ma r thereaft er s i ve 

lJ.otice of the r est or a tio:..1 of any sucl1 right to such p erson nn<i ma;;r 

g ive notice to t he ~JlJroprio e Co de Aut::.wri t y to re s1..une t :1e 

issuance of labe ls to such a :pel, son. 11 

The ju.risc.iction of the Contri bution §ection over c>llegeo_ violati o:1s of man C: .. atory cont i but ion ~J ro v- i sio!l~ of co G.e s was ex clusive. 

Fi e l0_ Offices of l-. 3. .A. ue re i nstructed to fo rrrar d a ll complaints of 

this nature without ci cl-.:et in~ to the Co:r:tri bu tion Section . ( **) 

( *) Unn:wnbe r ed. Con:;:Jli['.nce Di vision Men1nrai'ld1...un, COl')Y in IiRA Stu0.i e s 

ecial Exhi -b its Tlorl.\'.: f:Ia t e ri a l #83 

( **) Fi eld Lett e r 164, Sep tember 21, 1934, :?i; Field Le t te:r ·1 69, 

Octobe r, 19, 1 934. 

9061 
·< 17-

:"'~i Cv ; :nr.lOl<..'ndutn . 34C , .... ,e b 'T' .. et:::y '27 , 9:34 , c rented a Co cle Contribution :3oe d consi stin0 O.L three m""'rnbers, th0 ~w.irm n r epresent in~ 

t~1e Co de Acmini strc.tion Director, one mb r re'J e :en tin.;::: the Assist n t 

to t l1e Ac.mini strati ve Office r in cha r r;e of BuC::t:et s nnd :3ases of Assessment c.nd thi rd membc:- r epr esent inc; t.:1e Chi f of the Compliance Division. 

The fw"'1ctions of the BN1,rd were cle scri 'ued A.s follo•·'s: 

11 The Code Contri b Lltions i.Joar d \7 ill be r e spon si bl e for a ll nne:. VT ill 

0ire ct the di spositions of p r otesb;; at,_-:;ai 11st payment of co de contributions ar:d. a l l Ce rtificates of l:on-l'Jaument of Co de Co ntri bu- .· .... tions f ile d in acc orr:ancc -:itl:1 Adninistrr·tive Order lJo . X- 36; 

e::ce:p t that the authori r to cle::;-> ri v e inc~.ust ry mem1Je rs of their 

p rivileges eithe r to 0.i spl ay or use t :1e :;3lue (.2,: e or 1-. R.A. LLbel s, 

or to participo te in Tiork i i r..o·.c e d in •.•:1o l e or in part by ::!'ederal 

flli1ds, or i n ap};roprin.te casec of r estorin:'; sucl1 p rivil ege s, vi ll 

continue unde r the Comp liance '=" nc~ Enforcement Director. 11 

In ef·:ect , ~l 0'.7eve , curtailue:1t of 0.i scretion, function s anc. re- · · 

s p on sibilities of the Se ctior_ ~:as l' e l c.t ivel=r small. The Boarc1 aut horiz ed 

t l1e Section to continu e to r ej ect c e rtif i cat es from Co cle Authorities 

':7hi cl1 failed t o meet acbini st :ati v e sto..ndards e.n6. conferred blanke t 

aut hori t ;y- to handl e s:9ecifi ecl t ::rpe of p rot ests. A::?:9 roved codes p rovided 

for Ccdi3 Authoriti es ent:ru.,t ect. u i th the dut y of admini stJring the codes, 

subj oct to su:pervi sion of R.A. The Co de .Authoriti es r equired money 

i n orc-...e r to function. At first it lit'.s a~mn for g ranted t hat Cod.e 

Aue1ori ~r funds would oc obtained f rom vohmtnr•.r contributions. By the 

Sp ri ng of 1934, ho11ev er, it be came obvious that the idea of inclustrial 

self- g ove rnment broU£ht about t hrough Code Authority Administration of 

Cod.e s ne..s in dang e r of pc-_ r a l ;rsi s because t he e:r-_f)e c ted volunt a r y contributions 11e r e _lot forthcoming in me.ny industries. 

Co nfronted ni t h t i1 is des:perc\ t e r eali t :r resort rrc.s had to mandatory 

contribution p rovision s i n many codes. ( *) 

The p rocedure to be foll.c•17e('_ bf Co cl.e A:.1thori ti es in demand.inb contri butior1s from inC:.ustr'• :nembo:cs D..nt in reGistering formal complaint 

-rras outlined i n .Admini strative Oro.e r -o. X-05 . 

The Contribution Se c t i on d.i videcl. its nork b et '::een a Ce rtificat e 

Unit nnd a Prot e st Unit, tJ.1e f orrae r to exo...r:1i ne the va lidi t y of comai~ts of non-pqyment and the l a tter to p repar e p rot ests for the consi (er~ti on of the Code Contri bution Eoa rd 11~ to ~r out the decisions 

of t~w Boa.rd. A full er r eport on ~'!-0 op e r ation s of t he Section, p repared by J. E. Fe ebl e s , is in the r ec ol'C..s of the ? i e ld Division. I t mey 

be Iell, ho\iever, to }JOint out he r e ti.:e e:::te;.1t cf t he a ctivity of the 

Section. There Tiere ~3 , 620 c e r t ificates of no n- 1Ja:yment rec 8i vee.; 

130 , 514 d.e1.12.nds u=o on indus-G r-r t o ay conti.'i butio::1s ma de by 1J .R.A; 7 26 

Blue Eagles removed. 8.nd 56 r e stor e d on recommendat ion of the Section. 

( *) .E~:e cuti ve 

i.·:o . X- 20 , 

1934. 

9861 

Orde r :i."i'o . 

Ap ril 14 , 

5678 , 

1934 ; 

Ap ril 14 , 1934: AC.mini strative Order 

Acimini strati ve Orde r : .o . :A- 06 , liay 26 , 
- 1'8-

Findings of violn.tio~l c-: '.lP nc..·:.:'l,tOl v 0 _tri butioi.1 ·.)rovi si ons -ere 

s· ._'] li ec_ t he Government Contracts Di 1 s" -•• 1 J.:.J J.1 J cases . Co6.e 

A ... d1o1'i ti e s ''e r e auth orized to i l1st i tut e civi l :~ .1 i ts i n 310 ~es . 

The re nas pro abl ' le ss l ega l ba si s fo r the da or r · c ont r i bu-

.~ n p rovision tha n for .any othe r a cti v it· •Jf ~- .J.. . 

'801 
- 1-:. ·-

It 

n.s the function o-~ '~ ~1c Co;:w li~ ce ivisi on to r( 1i·1istor tbc ~ .. :;.ovi,..ion 

of tl1 c vrl· iou"' coC.€'C> , ··: ter ; t llc:· ..: ··c ·· n , ( 'E' ncies of inC:ustrial selfgave: :nnent heC. bcf:' n t.".'l' trl,l:i."i~ec. to ·c.e :·f.) ~1 ~:.. ir .~s:~ . Th e ::;>rocec'.'l rc rmG. 

h . • t . .r t ~ L . ~ t ' . 1 ,.. • .. . . t ffiCC ,-;n1cc- O..C'.O_J eC.. J.O r :.\ "~ Cl":':O T1t:~l1CC' 0 •• ·.'.1." ~') l<.'S(' Q_ CO C.e I'C.•1li11S rettion, :.1ore COlilT·10nl ~' 1:no··:n <' S 11 cor'h:l..i<.ncc ", h.<"1. c ' ,cu::. C::.iscussc<i in c't.e t:->.i l 

in :;n· cvious chr.:9 t <'l'S . 

T1e ultir:1at e :u :90se of coi1.:_)li.?.ncc "u: l~ ·rc r; the ob t a i n i nG of the 

hic;hert ·cos~ 'J e e~;ree of u.nL~orr.1 ol): ·~· ·:v:.' nce o::' t:10 coC'.en . I n t he accor:T_"l lislment ...-~ tris c.:.i!1 thcr r' ·~er •. t··o .!ajor cs~;ects , nane , t he 

nc t.ur 1 invest i~c:: t ion anr· ac j'u. tnen t of c:o: 1:.1lai n t s , 1..".. i scussed above uncler 

Ch::.:9 t c:r V, c.nd the cn ):~ul <::.n . ..;_ t~wron :~ 1 e(:u.c~t i r "1· of 1m:1bors of i n cu s t ry, 

l rtbor .one t lle :.?U~)l ic so 3.S to invt'st t:1e re s'.ll t " o:;:' t:w 2.C.j ust.::1ent phase 

···ith [ che:;. rctc:.· of __)e~ lPn nc . I t is ~.J_;.? rent th<'.t 'Joth .?.S~'J ects ' .ere 

e3se~ t i ,.l , E'.. tho u.r~h o'!' t :1e t· , ec'uc:-.tion :~ .. J tl1o :Jo re i r1:9o rt o.nt . 

I t ···o.s ne c c s :· n~-. t~1c- t co:T·::;l ic :rc c 11.: u:uJ. o l"; 1, not onl~· L1 ::9n1~t i cular 

nC.ust:.~i os , out :::.:on_; the C~'lt s nc.t.io:1c. .l. ~J1.,_ sr stn:;.c t ure , bec.:-.use 

t e coC.e _;;rogrr :1 hf'.-:". cen 'J;·.scc"c on the, r :"-'.l2.t i on ' tl1e ··:!:ol e of c onmc::-c c r.nC. nC.u "' tr~· . I t "<'F :.eces:;£':..7 to ,:..vo i /. i Ee•.n .. iti es , to curl"C. 

against co :· l..i c~1c e i r: nne r..er_:-: ent s:9:;. .-; :-c'.inr; to ot her lines of indu c-;t,. .. , ·•n ~ · "' 1· ·-,r· ~ t':>l"l"'l'~ ] ',) . • ""'J 1 ·c·o,-· -r~ ·'·' ·e co nce .., t,.., ct·lre rn he , - ~ c. . v. ~ l , •-•. .. a L.·'- . c.. c. . . .L t::< ~- _ ' J • -1 . ! • _ _ c . , ;:;, .l •. • • • _ 

:.1acni t u C'.t:.' of tl i s tf' -: l: c c:.n scr.rcol~' ·..;c D. .-~ rec c.·e ·u:r u :Jer e ~e:l1s:1l of 

f i t.,ur·:s , ·.:)11J..; so--le c.". ~' Jc.ion is :; i·v "'~ l 'J; the :~~ t t !:J ·.t the coc3.i f icat. i on 

of i :'!.C: us t r ,r i ncl ,_,_C: .ec' ES · :- co c' o [.: ['.::.10 :· ~._ l eDen t s L c; 2 , 500 : 000 en-

:9loy2rs , ( *) 

~o .? coru'. h~~l t lis -·i " .tic -~ ..., ~_ -: ~1e Cor1:;.liance :Div i s io n r:r.:.s e st~ b}. sh eC'. on Octobe:;:· 2~) , l 9)j . ( **) The co:T:Jli<.'.nc e t.:. am rrn s lx'.sed 

on a :9 l~oc cc~_ e ~1 e~)enC:l.ed on t.1-.r· r iJ. i :.'l." o::" cor.r_.::.e..i nts by e;J:)loye es , 

CQ!:l--:,et i .t. o -.... ,... -·1"\. 't- "C\·~ i ..... ..1.. ~-c"' t ., 0""~ - .. n~.,,.. 0'1"' ·J •r-r·-,·1~ "'1 l -, · .. .,Vl. n "' 1-no·•J er' ~e o·"" • : v .l ,) C. H . '-' J.. ,. -· - ''L! " ~• ' '.. .:_ •>- .. .,· ~ ' ~ ~ ." u .. '.J . c .• ·-c lc.c ...:.> '-- ' " '-'·C:O .J.. 

viol 2..t io·:s. ( *** ) Ou t ·):.' thi > .:'f~ inist:;. ~ t i \.·e J,wtl:o<·. iYZ c:::_y;.ro 2ch 1nany 

probl c:1s e.rcse . Since c~1. e ,~ e co-r_.1i.:-.nc e J: .. O:';"~~ -· i .. ,...s :c·roc.. ~r a 

fi e lr' :~:o0lcn , th::.s 'Lcu ~· io '"! '~ ll ::c' c12.te c~l ef ·· to t h.'l.t ·ol1r-se . - ~ 

Tho ··1ost ~,::, o~ent ev i c:.cmc c of t :·le (r l.' ...lLC r o:? _.:; o: 'J nts :9 l c:.n of 

:9 r OC6 (·.u r o t,') 2.CCo .. :; liGh the C0'1J1 i<'..::.ce ,_ ;o·-..J. is t~ C :~ story of (i.e ·elo·,r 

:n ent of con_ .. li<'.:::_c e ~::. :. C.u::. e i::1 '.:.:.18 :"i c J.c'. of:i ces. ( ****) 

( ------·---- - - ---------- -- *) See ::.~) e ~' ' ·2 s <"-"l'':: 

(**) Of..: i ce Orc.er l;.0 . ... ... 

( ***) See hc.._;> t. eJ.~ V, 11 :-.r_J ~i .?nce Frocec"u:i.· e L1 I!'i e~.c. Of::' i ces 11 , ' ' · 75, su·c r a . 

( **** ) c:1e·o t e r V, 11Co::-1_;:, l i e..nc e Fro ,·u:. e L 1 ::::'i el.c. o:,:_ ces 11 , F . 75, SU:9 r 8., 
-150-'-' 

I n g ene r c>.l, t he shor·tcomi nc;s of t h e com:_)l a i nt s s y ste!J nay oe s e en by its 

co m~ riso n Yli th the ·ou r-Jose of c o:-r:i1iance , t o obtai n t11e h i chest ·ooss i -

ble ci_e{;rec of crmnnent ~ uni:orr.:l conf o:J.."":Ji t y '.7i t h t h e l fln . 

"!3y i ts :;_~ y natu r e , tll e t:t t s sy s t ei1 o:Z ::;;ro cec'_ure TillS sy as:ooc'.ic, 

dep end inG a s it cU d. on the 8~'J rt nc of i nC.i v i C.ual ap ~. 'e::. . T:i.lis naturo.lly r esul teci in c e rt n.in i n e c:_t.'.i ti e s a:1onr: :-Jeabe:._'s of the 1e i n C:.ustries . he ob jection of ent s '7<J.s cor.mon t h G..t t he ir conyetitor s 

I! e re viol a t inc F i t h i Ll!'mni t :r '.7:1ile they ':Je j:- e ::1.ctc.e to suffe r a cornp eti t i v e 

<iis ac _v 2.nt .: e ~;c con') l y inG 'l'i th the l a'.: . Ac0.ed to this i tern of ay:9arent 

d iscrimina tion anonc co ') eti tors UCI.s t he f c:-.ct t hD.t i n Tilany ca ses v iolations n e11 t unrey or t eCl_ f or lone; :s; erio{ s of tin e. ( *:) Co n~ eque tl , when 

co.m? l a int '-.ras finnlly made the ,-;.a.-;e r e stitutions '.7ere often exce s s i vel y 

bur<lens or.:1 e. True, t he !.l~)lo s ~: e -:; ec. 1-,r i th the k nowledge of t he ir 

oblie;2..tions . '"mel '.-: i th the c'luty of obs e rvinG the l c."7 . As a p ractica l matter, ho·:-r eve r , ce~9 t in ac;-3 j_1

[l.vc:.t ec1 a n0. Cl.eli be r <:'.te ca ses of violation, 

the rer.uirenent of l arGe r estitution ,·ras ap t to co:t:tse resentment and to 

defea t t h e eff orts to 1.-,in the confidence, c;ooc. n ill and supp ort of in-

(us tr3r. 

I.Ioreover, the use of the con:-9l r-.i n ts st 1 ha c'_ a :;rof ouncL effect 

on the ab ility of the Cor:1pli c:-.nce Divis ion t o ft."-l f ill its func t ion of 

obtaining cocl e con.?li<:mce. ( ** ) . The ine f :"'iciencies resul tiTIG fron 

the use of this systen of p roceciure made t hens elves f elt tiC~ ll r i n 

the r el c:-.t i vely hit;l1 · tro.v el e::-::9 ense, '7hich ·7c. s ou t of y ro-p ortion to t h e 

concrete results obta ined. . It ,..,as no t unconn on ol~ a Field Ac':.juster to 

·oe sent e. hunci.rec. mil es to a c'.jus t 2. ho.l f c"_o ?.en cor int s i nvol v i nr; 2. 

total of 25 or 30 en:ployec s. This ·.-r<'cG :\larticula rl:' true in less i nd..ustria.l i zec1 stc.tes ··:he :;_·c t he r e s:,:J on{ ent s ::1i_:;ht b e loca t ed in st1a ll, 

sc te:~..· o_ com."lunities . It <-'.lso held. g ene1·2.lly tru.e , ho'lever, even i n 

le.r g er t o' ;ns a n d. cities . :: n::.; C'.G o. hT.flOthe tic8.l sit u ntion a sh or t 

trip o::: t·.-ro hunc :L~ec:; _ nil es, t :.w tru.th of t he 2.b ove sse:~..~ t io:!l r!ill be 

seen. Such a tri ) ;·•ouJ.c". us oX~ ~· be ~J c-.C:. e b:;- :privr-t e r:utonoo ile ·c:_nc:_ 

\7oul0. consurne t··ro full ci.,':'.:-s. ::.1 ' ··.•o rkinr; :) ro ~~ iTJ <:' te ~r a el e- ur 1 f L • " 'j;1• l 1 ' 1 ' t • 1 t ' t' .L " c..ay or r.1ore a r'.s·v , e::-y erl enc ec.. .1! le __ c-. A L J US e r ~: r_:11 l nves l (;<.v e C'-nc 

clo s e not to ~;: ceecl t en C2.s e s in the tno . e.c.:rs. Tlle tr<.vel ;J en e f or 

such at rip •:roulo. lle 10.00, per c'lieu a llo·· ·ranc e ulc . be ClO. OO, 2.nc 

the Ad just e:L~ ' s sala r" , f i t "tlred. r- t ~1 e :Ji n.i:-Tun ;r;r c:u::.e, 1.7 oulo. a.r:1ount t o 

$10.00, a tot~l of $30.00. b<:'~ y f i f t y rce t or less of t h ese 

c 2.se s '.7oulcc b e a djusteC il1 :cul l -r i ~1 :;_·es t i t ution . 

It t be unD.erstoo o. t ha t t h e e:-::-oens e s h ave 'Jee~1 f i c;ure o. at 2.n 

absolut e n ininun an0 t he :;_· e s'\J.l t s ho.ve "uc en e sthJat ed on the a s s"lJ!'I9 t i on 

t h e most fav or8.ble co nf_i tions ·rere -.Jresen t. Actuc:-.lly , s i x t o e i ght 

c ases rroulC. be a c;oo c."t. av e:~..~rr; e ;)r oc,_uc tion f or such a tri :p . It i s i lJ:possible to estimate t h e r2 e '.72F e r e st itut i on ·,:; e r c.::- se s ince t he f i gure of 8112.16 ( ** *) fo.r al l u ce1s e s hanc.l ecl by the fi eld off ice s ':-ra s 

(*) J'or COL1y laints StD.t ist ics on :'_;1 erio c,_s ~ Viol a t i ons , s ee t 2.0l e 

~O I V, a-.9:9 end i c e s . 

( **) See t abl9s VI I o.nc_ VII I, nyp encU c e s , '7h i ch di s clo'se t hr-.t the 

a ri thmet l .' er c: ~; e of tiMe co n sune& i n ha ncU i nc a CCI.se .-,as 7 C' . rs 

fro;J G.ocke tinr, to f i r s t ac tion , c:nc'. 4L 6 C'..Ei.z' s t ill closing, a tota l 

of 51. 6 C.Cl.3'S . 

(** * ) Deri ve0. f r o·1 anal ysi s of Str.te Of f ice ca ses. See Tabl e X, 

"'.:_Jy en0.ice s . 
-:l .... l-

~1crer sc( "J · • n 'lb 1~ 

·9~)1~ec i< 1~' re_:1:. e ... cnteL' 

Sl1 ~.1 cl~ CO' I 'U1l i t i .__<> . 

o -~ n!:tu> ,_~ 11 ., 1. ~ ' ·e .- ius b.lc>n '," in inc'1 g t ::i e~ not 

in~· 1, joj·it:· o;· st<t.__r· llOl' orl·in~.l i:!. ~· fo141Cl in 

The fore<:;oinr ~P?ot 1e ticcl ill1l;.t.~r ":. 011 o·· t .. r :.:c• l.c.ti vel:· hi .,h c::-

:pense :~ c.ci·1L1 i ste:·ir:.c tl.e co(.~··; \ . ..;1\ •• ~ co 1 1< i· h~ :;Jster: i~> e·1:9h<'"'izec' 

·lH'n it •. s :·e 1~ ;·oc :..·r t. ·t. L~ ·~,: co·l~}r'int~. ·-c~~.- :.:- tr:..· receivecl. ac inst 

t n Sr Je r c 0 nccen t. T' . is J:l<' ,'.e it nl'C e 8:. ,., :..·~- to _'(> -'i,- is it the E'tl~)loyer 

anc". t o r c tr:--.cc the s'·c·s o ~ i :: E' ~;~J: io l: .:·:1- .:- 'Jt:.st 1c :1 t . ( *) 

T:w o 'bviou s c i G['.(.v ::n t ;· ··:~r. o ·· t;· i r: .J.'ocecu:.·,., re1·-.. t~H~ :re·,)e t it i on of cf·~o rt 

end conse~llent loss o: ef enc~· ·"'· c' tl:e eG c·n :~cnt u.sue1.ll~r c:tcc.toC. on 

tl1e ::JC'rt o: ~1e res~")n nde.:t .: t "Je i:·_-_. :1e.r[' '·( J~' co l_ ~.Dint-- . I t i s true , 

t~1 ef·:ect o:- this C.ise.l.va nt c' ·c on t lw f :"' i c J. erl c ·· o·:· th2 fiel-..".. offices 

--·r..r all::-o~rc,".. to so:.1e :~::-cc 'b:· t~l'J ·1o(.i ric"'t i o!lS o:..' ~: e co.r_Jla i nts s~·st0n 

introc'.ucuc" J~' P i elC. ~.("\:.~ 1 2). (**) :'-Io·-cvc r , it · '[".!': inhe en tl ~r i .J:!! OSsibl e t o so co ntro l tJ e ii ·"'J.u~~ o:f o1:..:. .;-- i~s ::·:· ~o ·oc il.Jle to JJP:o oLt ['.. 

SJ"'to .12.tic h:·nc".linr; of the co:1 · l.i r.::cc· :.J.'O J .. e:.1 s L1 ~ nc~ t17 o:- locr- lit:_r . 

?urtherrloTe , t :-.e e::t ent o; t he c.c ti i t i m: o: t.lC :...'ielc: of::'ices 17 s 

control l ee' 'J~r the volu:-.1r. of co:J 9l o.i::.tr. ;'il e c unc.~ e:.~ :J :..~ ticul<' J..' cooe s . The 

D~)Ol t-- nc e of tl1i r:; .. )uint i ::; 9~1o· in o_· t 1e :~:-. t L1.~ ·c o ,:.t o.L <. total of 

1 l S , S77 l e"uo r co n_, l['iLt [~ G.ocl::ete{ ~J~- c.l 1 . f iel c'.. of·._' i c f's , 90 ,001 fell 

u1cle:..~ 2 ) c oc".es E' :1C. tl~ L~ su·~:-- :. ler:t ~· . (*'U) ::Ul~th c:. ore , 65 , 870 cou -

u lc>.i nts -~e ll. \'lnc:'.e:c~ t!1e ollo·-: ~: "' i~ : c oC'cs : ** *~') 

.Res taur£l·•:.t 

2 etc:..iJ_ :'voc".. c-.n,'. G:·occr T 

RetE'.il 

Const ructi'Jn 

::otPl' - e11icle ::-let£'i:Ur.~ 

Hotel 

~~< o. Con--·.l_aints 

14,SG4 

1- r ?O ) ' .JL 

10 "0"' - ' c:.c.:.o 

C- , ,;77 

C oSo ·' l; .. " 1 ' . -

:Ebtio of :J;-,n lo~rees i n entire 

t r2.C..e o:..· inc.ustr'· to Cor:l"Jlaints. 

r;3 r l 

.) •.- -· -; G .. I e 

'{ ) 

These u.:..~ es a:.. c ·.:-; :t· if.1c. ~r · ie ev i c"e·-1cc· :.:·1 t~:c;i S81_v:'~ ;f t he inac.e ru:-- c·r 

of cover<>.r~e Ui1t"..e:': t ':.c c o:T:: l;· L1·:,P -_-,_ :,_ )£' rocoC:cc e . 

Tl10 .:-·oove :-_1el1 tionec. ~'.ir· _-_ i" ~-:--e:s '·e-:c c~···:,· fed. in iLl:_;:> o:..~t c.nce bJ 

t~1e fr-et ~12t -tl:.e st::.·ict l_o nts ·:, ,_rm -Pc:..iler' uJ.· u.c co;:! .. )2.islment of ~1 e 

ul tilll<:.te ]Lll .:.::oose c:" co;1:_:·l i --ncc .. ol~~: . ir.n.-l L1: · ec.c:1 co:1:9 laint seyctrc:- tely, 

,.,l' tl' ()', t r r.oo .- ·.,..,, "-c:. ,- !:'\ ''. ) •• -1- 0'1 "' 1 v. ~ ....; -~ _J.(•L\;. • r:~v ·'--· ..~.._ vl1P. - J co 1"/-1 4 1. \ "1\ _ _ L,;. "e -- ··o

-L 'Jl__ e· ·s .. o·· • • 1... 3.'1 l l·nc'.v,s_ "'·~- lJ J. t , 

o ;.- lo c --1. it/ , it ,.,,_s n~=o~:-; 'ble to :ollo· · .· n ef:'c ctive cC.ucc tion:;.l :::>:..·oS'1C..._ _ -1 [' .• --·o J.. .__ -- r~ ---•. 1 ·1c • _ \V ce"'ru .... ..... 

"·_ ~i1-- - -,_,. -,-·· _J.·. r··---o-·.r>c-"' • ... _ .J )_ ._, _ c.. . 1:_. '·'r.'~l ____ \... ~ - C",.,., c.u. J.."_:.Jl-N {'\l·g..1. n o..P ... cJ• l· sse:71inati:r.-· n:Z' or. [' o!_ r..nf. L1e inst~:--u. 'Sion o-:.' i:-:.i..-{lstr y us to its obli.::;e.-

tioY'.s u.nc.e.c t~'le 1<·-- . I)~ L!.c2.,,_(e c'. c·;:0..- i Y'. cL_,. :-·J o:re s of t he benefits 

*')' Se c t<."u l e V ?n:.:t IV r:_ ·oenc.ic es. 

( >!<"--.· )- S G r~ GU:9 i.' 2. , ~Y'? • $ ·~ 6 8 

~*~~) See tP:·le ;:c , C.::_)~)en: ic c~ . 

( **#~~) I d.eT.1. e~J c:-J.so c- ~1 le ~=nx , C';o·;cnl.ice s . These :fi ~, ,_ l~ os on :..·2.t io of 

e11:9 l 0,/e· s to o:. ·_::. ~"'L.ts :t. il ec,_ a r e er\:;ec .::-1_·~~ si::_:~1if ic 2:s.1t ·rl~ 1 O!'~'J 8.!'e(l_ 

.1i ti:l tho :.:e -:or 3oot r-:1C. Shoe , 12? . 0 , ::-:1c'. ~o::.. .l!J 1.ect:·i co..l :·c..n :--cturil1~n 

441.2 . r:i:'he l i c;h rP.tios ~'l ~~et< 2. r- ~1r" Con structi o!~ c.::..·c e::-o l e. i n·ed b~· 

the e ::tcnsive covcrr 'f.' o:~ tlie t · ·o cor .es. 
-152-

to be derived from com~9 liance and th e devel o~Jmen t o-l easy m0c11anics for 

voluntary conformity to the law, suc:1 as t 'J.e insta llati r:J n and. maintenance 

of ac.equat e wage and l10ur r e cords. l1Aanifestly, t h e )roble:n of educati:.n 

was t ) o b road a one for s:::1asmodic .l andling under individual, scattered complaints, requiring as it did uniformity of Jr ac~1 and a co ordinated anr:\ 

int ensive lJl an of activity. T.1at t :1is as~~ ect of t:1e work :12.d t o i)e 

neglected is a severe indictment of t:1e co m~Jl aints sys tem, for wi ~1ou. t 

the education .: f inclustry )ermanent com-) liance was Ln-)Dssible t o obtain 

and even ) r e sent conformity was made ver? difficult of a cl1.;_evem0nt. 

Likewise, experience ~1.owed t~ ;. at t :1e t o tal com) liance ~; ictur e --,as 

infi nit el y involved and com~) le . ,It vvas useless to a ttem) t ~1 e a' ju tment of individual vi'Jlations wi t :w-c.t also removin~ ~. eir · ca:u.ses, for 

they were t ;wn sure to recur and )e r~ a:ps in mor e aggravated form. T:1us, 

it was es.sential t o ascertain >. et~1er t~ 1o conditi on of non-co!n::_Jl iance 

was clue t o stroncZ com)e titive .;Jr essuro s or t J misconceived labor ~Jolicies 

on the part of t 11e em)loyer, etc. ere a gain, t:1e fulfillment of e 

objective required a broad l~no le d . .;e of c onJ.i tions in 10 industry or 

locality and an ay)r oac.:.:. t J t:>.le w~1 e -_;:> blem rae1er than t:1e correction 

of a single v iol a ti on. 

T:':le obj e ction s ~1. ic 1 ~. lave b e en voic ed a re b y no means all-inclusive. 

Attem::_)t :.1as ·been ·,nad e he r e only t o menti on t~10 se which _,;vere fundamental 

disadvantages. T:1e se •ne ~e e com'_)e ti tive inequiti es placed on res-_;:>onden t s, t:1e delay in corroc tin ~ vi olati ::ms and ~10 consequent :9il ing u :9 

of lar:::; e amounts of · restitution, ~1 e concentrati 'Jn of efforts on r el atively unim·0ortant codes , tl1e du plication of effort caused by re;_Jeated 

complaints, t he increas·e in administrative se , an d e1.e im·Jossii:Jility 

of achieving ::_J ermanent r e sults because of the inao ility to conduct an educational ro rlliTI or to r 3move the cause s ~ violati ons and because the 

volume of work could n 0 t be controlled and cbm? liance activities sy stematized. 

Secti n 3 - Practical difficulties in use of com-plaints system. In addition to ~. 1e disadvantage s alreacly mentioned and indicated in t~1e foreoing secti ons and in Chapter V, . there existed one major y ractical difficulty in t _le u,se ·o:f tho system that is sufficient conde1:mation in itself of t21:.e r elianc e :'?laced sol ely on comp laints a s t:t1e basis of procedure. This 1

Has the basic ;? roblem of ~) rot ction of 1e com)lainant 1 s 

identity. (*) 

is .:problem l)res en t ed itself immediat el~; wi :. t he use of om )laints 

as the "basis of j?rocec.lure. Quit e log ically, em:_)l oyee s w~10 compl.a:i,ned· 

ex]:)ected no t only t>a t t:·1e vi olations woulcl b e corre cted out 'l at t~ ey 

would be I> r o t e cted aGainst any m3a sures of retaliation on t:1e )a:!.~ t of ~1.e 

respondent-. Cn ~10 contrary, h o v.,rov0r, lett e rs r e ceived from com_)lainants 

and r G})orts fr om field officos, an d ev en from Local Com:yl a inc e :Boards 

under t -1e PRA, indicat ed stronl;l y :a t t :.1e filint; of a com~1l int by an 

:p lo re 3 was oft en fo llowed b y di 1a o or demotion. 

It was r eali zed 1at, th eore tica lly ,_ sucl1 action did no_t increase 

unem lo :yinen t, because c) nerall r s)ealcin 6 , 1e vacancies t.1us crva ted ~lad 

t o b e filled. Mor eover, it i s unlikel y ~.w .. t t he number s o dis-

(*) A total of 352 complaints were do cke t ed )y t :1e fi eld of fic e s allegin~~ discriminati on for f ilin;; com:;laints. Table XIII, aypen.dices. 

9361 
Cl'l...,-~,..o,.· (. .Lt.. \.-:--\ • 11''1- ( "'• (. ";1~~ - cJ 1,.. 

..,. I..,--- -.~eel· (. n'ulc I c:.' '-~cct on t10 '"1 0:>': 1 .... 1 tUj.'nO\' r in tl c eJLO"'f'< ~-L ·J ... · •J." '\..} c count:..~ . r· 0 :;. ··; len r.:·o~·c' fro' l tho f~.ct tl1r.t 

::;l>lo, .c s ne:;,e c"eter:·er'. f:i.C' '1 -~il inr: co !~·.Lrln~. ~>: · :"c::c-:: o·" losin.,.: their 

jol1:... . ..r..n:r o .. tho"'e ,,ho co 11 ( rur·-1ir>lt evi ~ .::r=> o-~ vit)l.r.tions · ·ere 

loc-t]I.C to CO f.' 1 f ecli;V; thr: it' .!~ OC·tt. L:.' (.O ·ro:·:.: rvl' l.CSS thrn : ini-

'11.~ · r ·, ~ o:c iL c··cess of coi,.P :1m,1.::s 'c.:::.r :1 to i".:.avc ."'O ~ob f .t c.ll . 

The ic.e" '"'!C'S ['(_ ~r.c ~ D.J onr: e:J: 1.o:·ecc tL.. t tlle A<".ninist:cr..tion '." I'.S 

reC1uest in · evc::-:·one to e:o o:~t --i·olr tio j) S, A,_ t · ·r s c.o in-,.: nothint; to 

~0 rotec ~ tllEn fro··: t" iscl:r..::.:; . Since co··1 ;l.i.':'.:1ce _;Jr ocec':u:..~e D.."' bc.sec'. enti::-el:; on the cor::lr.i nts ~etllor. , it ··:- :. c:\:;:n:-·.:·e·1t ~1 ct t:·.e e:·istnece 0f 

such an i0.ec-- in t ;lG 1ii1~.·.~ of t . _( ··or' :c::s -·o·L:J t.". :. csul. t L1 · !nn~r flo.r;rr..nt 

vioJ.ations co inc; u:. 1c isco zrec~ . 1J l~;lo··e8S ~- s~urwC. t]l:'t · rhen .l.le~; C?i1-

::?lied.. -·it-~ t:~e C-ov (• rnnent 1 s rec:_ue .. ,t ·,:~ :'n:.':1ir.:1i nc; e:v i\ .. _ence o:f violr.tions, 

the Gov eJ.')."'..I:1 Gnt · ·oulc rl'c i y ro co:c c 'J~ · c:c c''~S t )::o t e et Ly; t her.1 fro: 1 c i schP.:..·rc . · . .11en it ··0s ··itl.esr;ed. t.~1rt ernlo:rer;"' ·-err; r-ctu ~.lly 'ocinr; C.isch:t.r::;et". .~.nc. th".t t;le Ac" .. 1inistration •r: c-; t[>J:in" l. tt~. t' o:· no correct i '-ve 

act io n , the~· 'Je[;c:-m to lose con:iifLenc ::; in L1E" · :1o le co· !)lic:-<.nce :9:..·oc;rrn . 

There --·ere fmL~ :1oL1 for c es o_;e~~ . ·:;L1.-:, to (et c :t e: :·_; loyees frou f ilin:; co~·: l.cints . Theso ··o:..·o the · fe:· :: rJ·f r" i sc:..· i :1L1C'.tio.l, just 1.1 entionecl, 

the c'\.er;; L:e o:t i~1C.ivi tu~l "'Ol'::e ~:' " to e,· ::-:.1 :1i ·he::.~ ~Jc.~ ' ·j:~ ·.·orl·inc:; lonGer 

honrs ( es:;JeC ['..ll~- ,.,i t:l :~ eee· o::.. l_e j_'r; ), t:1e e: l) lo:yecs 1 "' ~; norc.n ce of rir:hts 

"'nr -... -~OC"'\_U _ e '"'n, l !:->C1 . OI"' CO 'l.r l· r"c 'CO o·n .1.'1e . ..,,., .,t -~ c.-y· J. oyee"' l. n the c.;. "" _J ~ c; J. , c .... c- "" L .'. , _ '·- . • vJ. :_Jc-- .. c.. ._J. ' u 

[J.! , L!.ch,_cliL,:; boti1 t"istl-ust o~ loc.:-:1 of: i c i ['..ls o..nc". r. r;ener2.l feel i nc 

of in ef :~ ecti enes . Tlle l ast t··o ···e:,·c cC'·?~- Jle ~~ be n~; renovecl ·b:; cc"..ucc.t i n" ~::c". L!.s t:L u.ct L1(~ e: ~: .o~ree . The seco:tlc' cou!.C. h['ve ·;,) oen obv i r.tec3. 03' 

the OJ.F.'. n~cnr~n ce o:C ~1o:;,·o·.;_.' .': , c.f.eour.te · '~{_; e r.n(" :w1.u· :-e co:;,~ (.s c:mc. ~J :;,~o i­

:m :~o:.~ t:1ei:..· s~.rste :J<.t ic ins::;::e ctio:-1, :::.nc r.lso 'b·· e--cl uc".i nr; L1e e:J:? loyee 

i nVOlVCf. r l'O:'.: tl' e :i.'8St it1.'..tion ··l1e:.•e '·,l..l il t~r 0~_' C0lL1.'.SiOn ·-r ith the eTy,JlOyer. ?e2~:' o:·~ C.. c::..~ini nct io n ···;'s ·)/ ~·- -:,~ t~1e stl~on.~;cst teter:·Ly; force. 

Sone 2.tte:.1:9t ,-ras -:C'c~e to T8! 1ec: · V.1i s si tuc.tion ~J~C i nstT,J.ctL'lg the 

f i elc'. o:~: ic es to -~ l·otec-i:. t~:e i c'.ent i t:r ~ corr:;l<:'.i nants. (*) · T~1i , ho'7-

ever, ·.·:-as unsnt is:f<·· ctor/ L1 C.er,lL."r: · ·it:l t:w ':n·obl en . These instrll.ctions 

,-,ere su_9~; lenen t ec, 011 La? 15, :!.~ 31~ 1; .. 7 ,"" :1 ~~: cl..,_t i ve O:.·c" e:..· ~or o hi b i t inc; t :1e 

c, isn iss2.1 or o.enot io:.1 o~ e .. ~c lo ~ .. e e s · o:.:- co:r 1P i::- inr; or r: ivL1c, evir.ence , 

unCer ····e ·.,~lt T of' .... 1. '1·"' ~·1·· l· , ,., .,l· .., •. ..,.,..,.,e·n t (*!ll)' - :::' -C. ~ .., -- . _ _ ...., l .. L. . _ • ..~.. .._,u.;. .L . • 

·.r.L1 i le tl1e P~:ecu i ve O:tc'.e::.." -'f.S c. if -~ icc_lJ. t to enfo rce ' it ~lC'.C V2lue 

in i t c- morp.l eL~ect on J:) lo~re:. r c-nc'. .::~ o~reos . ==o- ·ever, it :.:'ailecl to 

6.i s·oose of t 11 e ·::.l~o ·ol en ~)eC<" use o:"' t ;:c; ~ !·.J:l·r.c t icr.'Ji li t 'r of its enfor ce- - ·- - ~I 

::1ent in the cm'.rt.c-.. Th i s is ··rell i ll_uc:;tr: .. i:.ec'. "J:· t~w consi c,_errtion of 

one o:.':' t:le :.~e-- c2.ses re:.:'e:;,":.'f C. to tl1e co-..- ~ct s -.. uc" 8:·.' this or (~_e r. 

- - ----- ·----- - -----

(*)' S1 l_;, l'r-., Chco:.~; teT V, section 7, ~~ ~-on -:. if cJ.os"..,_: e o~- :~ ou~'ces o:.: con -

·Jl~. _ __ c. -,ts - 11· '-ll -=->e. .J~,l..,tl·O.l1"' \..-Vuo --f'o-~ .L •• --J . • ,~ \..- t..\.l +· .. 

.. e·1'- l\.1 ' etc • 11 (1"\c· ,v v obe·· ..I. ,- - o ..) , 1c-:-; _}_,/_~:) ) ' 

-') 4 · 3ull e t · ., ·- 7 , -_,-... J • 7 ('f • " .. - 1 ... -·-""· · ., ,., :- -.... l ? · ';11' l · _ . , ...) l 1. ~~o . _ 1- o; ~e .c · C.,t-~- .c_ , · _, _ e . c.. 

1 e t t e r 48 , ) • l. 
ortly after ~1 c s~ "L: e.nce of 1e := :~ecut ive Orte:c <:.'. conc lA.int -::::.s 

fil e c:. ·-.-i t :1 t :1e Lou i s i o.nc.:._ St te Office :; -- t e-x:.- L1cust:l':' Jc:-.:IJe:;: i r 

Fe'-r Orl e::.nP., I.e: .• C*) :.r.ec~.i2.tc _.r a.ft :::· :i.' oeint_; ::.1otificc~- o:" t i1c con-

:;J1e.in t ~-· o:n0.e::.1 t ll cC r.J_ 1_ ;:is :- 1~J lo;;re ~s to c: ~ilc:.· 2.n.C:. -'.; ole·_·_ t~ eD th:-.t 

u::.:.l er.·.s t :1e · 1aE 1!>o 1~L" V:,_e co::.r- laint confes~ec. t·:w e;.1t.i:.:c- s~"1.o ·.:; '!c.'.s . -

r;o i ·'"!F; to u:L.~c:.~ . Tl1e ::·o!..}_op i n-::; .'.>.~.T L:P. c o .. >)lc: i nc:,.1t ·-·:•.s c£.1 !_ec_ int(' 

t l1e rc s~:;o:1c.el1t 1 -:. o:~ . ice :J.nc- s~.1 is ~: ec.. Aft el' .1~·1:r Ui su cess:~ul <:ttc· ~~ ts 

a t 2.i.just.1ent. by L 1e StLte DL·e ctor 1 r OL' ice t'~u:: c:--.s e -,- r; :. fe:.~:: e{ _ t o 

t lw St;•/c. c ).l.Ju.s tnent J o2.rr. fn :.: ::-. :1ec.ri!.1(~ .. T~ 18 St :--;~ c _.',..( jiJ.st :ent :Joc.:J. 

unan.i:'Jo "L _s l~: r ecoJJDe nei er:. t :·lc.t un1.ess t he r es·-::o:..1r:.ent naC:.e :,.1J.l:i. :i.~ d-;ti ,::..- ion 

am:. :::· r~e teC. L-: e cou::;> J. r.in2.n.t ~~i ll n i·re ~~- '-:.ys , t l12t l:.i B ·_,h,_e ::~ .e 

be :i.~e . .Jove6_ 2.n0. t l1e c2.se be refe:creC:. to t~ e Dist:ci ct At t orne-r :o:.: ·:;:.. ose- · 

cution. The :i.'e s·)onc:.ent refuse(_ to 1aJ.~ e this c:.C. . .ju ::; t :Je:.'lt , so t~1e St<t e 

i:t ct ol~ s1.~.-0 . :it tee_ r\ sw..LJa:;:- v of the car.:c to the Co:.r.:.lic:.nce JiVis ion ... -

--r iLL ~w Te.-ue st t:12.t he ·oe uthor eC:. to ~J re:-9 2. .- e tl1e co..3e f or .) rosecu

tion. As ;'_ result of sev e r o.}_ confe r· ence s oet-·eer: of: ci c.~ ls o::: tho Con-

~;1 i ance Lnc.. Lit ~: " t i on Divis ions t ile State Di~~ e. cto ~--' · d' r eoues tec1 :.o 

sencl i n t 1.1e coa ::;J:et e fil e t o the 1 5.ti::;r'.tion Jivisi ·on ~·~O:i.~ revie':;r. 

T:1e c2.se · Y·e·:1E.i ne( i:1 tll.e Li ti :~ ;· t ion :Divis ion f or sever~l •:r ee~_::: s 

':-r i thout " action )ei-:1 (: ' t<1 ;:e ~1 . Jh:c·i:.1: ~1 is tine et· E':i.'S o..nd. -teler:rans 

•-re:i.'e const ~~ tl y coni:,!.::_; in ::':co:) t h o St~\·ce :OL~e cto , tl1e Stc-.te AC'.jus tnent 

Jo arc"_ ::.nc". t > e co ;1~J f'. ,--.n t ur g:i:"'lg t.ll.n,t Jc > e. ? e·>- :. o:1c".en t be ~Jr osecu tee-:. . The 

Cor1:9 lianc e ~..:: ision oL 'icL·Js i·:e~ t in 0.:-' il ~- nt~ ct ·-- i th the Li tic.a·cio:.1 

Dl.vl."'l'o:1 "':1(- pe · .• ,.., +--;-'1_.,1·1~- C'llc ...., es,.-::-,1: 1':1 -:- ·l .- · +'1l!' J. Divl·sl·o·n 7o~--~-·c· +l1e .;:) . C: . .1 - - ~ \.,. .l ...1- J. _ (.. . . -··_,' t.J # \..... • "'-' - ' - \ • - - l l -v \ · ... .i. .. :. v ___ (...l.. v - - - -- .1. (. ... .J.. - vc c.se to the U.S. Di strict At o1~:.1e;r :: :;_~ 1e ~c·s t.~n District of Lo-:J.isia: a . 

After r.everc-.1 ·ree: :s :·u·C_ sl o;·; sef. ·i t;J no c::... c tioi1 u~-~-i- ·: ·oeen t<'.~ en 

by the District Atto:i.·ne:-- , t h e St C' t e Di:~ectol' re:_ t t~ C:t t ile reS~)011 \~_ent 1 s 

~1lue E.::--.::;le sl10"Ll_lcl 'be r eT:ovec:_. cl)l1Ser'u entl:r' a :.-c:- :lsc:..·i --~ t o:: ~1 e C"'.S e 

,

\ .,!Olr c ... 0 • . . 

·~~~- - -o. r· --.1.. pd . to tl,e.J._ • .) l·o·-o- ... c.. • } . Ill. i

- ' r...: .·, cto•· ... 1· --

-(1 A'tl J . l...,.... nt ( ·, • ' -· eo~-·l· .L. !. .. l,...o.,o ~ • A- -~1· e"c. ..... 'l·--,-_. ..1.0 

---, .s r:._e l c. -before t j:le ~e ~· io:1 <-:-. l Co·r ·J. i o..:tlce Cjoi.,_:ncil <nc'.. L 18 :i. es~) onclen t -·v.s 

c'-e:9ri ve t o:<- the ,_"i r;h t to :_JlD.:.- t :; l8 Jlue :8<' ···J..e. Che Council also 

:recor:1nenC:.ec".. t hc:-.t the tl~C' nscri': t of the c;-o .. !~.e ·;')e :c· cfe :i.~:..~ e_-_ t o ~e Li ti:--:c:.-

tioll Divi io~'l · fo:..· furt: .. w:.:- ctio ~1 . 

AL1. d:u.rinc-. t~ i G time t h e ori ::_:: i nn.l f i:!_c ~~ · .. reu::.in"d i :r1 the he.nC.s of 

the Distri c t Attorne;yr. T~le:i.~ e i s ·r::o recorc"_ i n t~ __ e· :L' il(" as to ·-:-l1at rction 

'72.8 t2l:en o:.

7 h is Office 1 bu.t y~~Cl.:;.'e !.lt l .. , 10 l_ec;al _:)::.'OCe e c'lincs 17ere eVG:' 

ins t i tu.t eeL. 

I n co:i.~C.c nce ·1i ~1 ~w r e co;-_me!1c'2.-G i o::! •):: t lw So:.:pJiD.nce Council 

the tre.nsc:-·i·:; t of t h is c c-.s e ·"'r.s :i.' efe:.·:: c - t t> e 2e·).onc:-.l Li tiL;t".tion 

Attorney . Fo fi.u~t ll.e: ·· r.tetion -- ·c-:-.: t nLen, ho·-:ever, nne'_ at t J.-:.. e ti:Je " t h e 

Suyrom.e Cm.1rt ·

1 s decisi on on ; ir.y ~: 7, 1935 , J~ :'-e c2.se ··.:c:-.s on su..s- -:-: ense i n 

the f iles o-? tr.e Li tio::.1 :Oiv-isi o21 ·· ith t~~e :r.o t c-t io·r1 that 11 no inte:i.~­

s t c.te Cor.ne l'c e ·-r::· s sl:tDnn w;. 

The r ocor6_ of t llG t .. 'bove ·.1ention€'cl cc::. ~>C' cle c. :cl ~r ill _ust ~c:- t.es t he 

0_if::: icult i es enconnt (~ :;: e( ov t~te Ac .; in ·:- :...,"" :io:;~ i n ·~ s ef:~ort s t o en:orce ~ 

the E::e c1..1.tive O:r _e:._~ o:.: ::r.y 1 5 , 1Sj 4. In vie,-r ·o·:: t -1e fc.ct t:H'.t thi s --ras 

c" e• ·elo::~ _ ·):,- t~ c Co::1_; l i o.nce of::i ces it o.l so 

of:~ic t~. s ,-_re:te s~ :; ticc l of court c....,_ ction i n - -

one of t he tro~~cs t ~e s 

sho•-rs t hr.t ,_~,_ e en: ~· o:!.~ce 10nt 

C2.SeG o· !0-C ,· 011 t:li S Orc'.er . 

(>~~) See --~ i t i c c.t-ion ::J-ivi~-i~n c;-o.s ~~~ il c~~ , c'.oc~ -e t no . 1- 457. 

9861 
Th g rnvi ty o · t ni s b 'i c u rnc tical probl m of )ro tecting the 

ourc of co mol "~ int was in t ,,e f ·tct that info:r m:" ti Oi1 deri vcd from emp loyee consti uted the major ·1mount of vidence of violations. ·(*) 

V nile no ,,ceo rat :"Lnd COtnur hen i v e fi 6ure exi st ·1 s to the numb e r of 

employ rs kee int:: adequat wr g e ann hour r vcords, ::;ene r nl experi ence 

with mass com<J lL. nee surveys , not Ab l y in Ohi o, inclicat e the figure to 

be about 30 :~er nt. 'J.lh e Boot ann S.10e survey, · t'1e only one of nationa l 

scope , s11owed 38 De rc en t of the estaolishments ins·0e cted mainta ine d 

adequate records. This number , noHevPr , i consi derably higher than 

ave r age becD.use of the nign type of mf'.nagement encount e r ed and t he size 

of t ne p le.nts, the normal number of wo r kers. em9l oyed ·oeing in excess of 

150 ne r sons . 

In COl11leCtion wi t h what hR.S been sai d it is i n t e r esting to not e 

the statistics of ten selected off ice s concernin~ cnanges in the sources 

of labo r ~om:9la ints during the sev e ntl p e riods of the Compli anc e Division's 

history. These periods corresnond. roughly with t he four stages of development mentioned in earli e r chapter s . t'rom August to Dec ember, 1933 , out 

of 390 complaL1ts docke t e d by t he ten off ices , 3 uerc ent were anonymous, 

40 percent cexne from p r esent employe e s , and 15. 6 ue rcent originated with 

former em•_)loyees . In the next period, from January to June 15 , 1934, 

4117 compl a i n ts we r e filed, of which 6'percent were anonymous, 34.4 percent were from present employees , Rnd. 20 .3 percent we re fil ed by former 

employees. . The suc eecl ing period, from June l S to December, 1934, sl1owed a marked cha nge. 5265 comulai n ts we r e filed, of which ~.5 percent 

we r e anonymous, 27 pe rcent minus orig inn.t ed with p r esent employees, and 

34 .5 pe rcent were filed by forme r employees. The l ast n amed source increas ed 117.8 ·Je rcent ove r the numb e r in t he prec eding five and onehalf months period. In the 1.-,st fiv e mo nths of c om:)lia nc e a ctivities, 

from Janu.:. r y to iviay 2 7; 19 3E> , 3366 comolaints were filed. Out of this 

numb e r but 6 percent were anony-11ous. Pr e sent em )loyees drODDed to 

13.3 1Jercen t and forme r emolo;vee s decreas ed to 21 i)e rcent , due to a 

large iac~ease in the volume of office co:n·)l A.i nts , including those 

which were the r esult of mass com,J lL .il e surveys. 

Se ction "-i: - ·-:ass comolienc e as a_·: O _ _ se cl _s ut ori . ( **) In the previous pa,se s of this his ory an f'.tt em:; t ilas b een m· d·3 to r ecord the 

d eveloument s which took p l "~C e i n the co1n~; l i ::n1ce p ro.;ram as a r esult of 

t he emerience s of· the ·Gom ; l i 1.nc e Di vi si o.tl and i ts nine Regional and 

( *) See t able III, etp-lendic eo , whi ch shows that rou.6}ll y 56 pe rc ent of 

com··)l COl.ints we r e filed by employees w~1 il e slightly less than 19 pe rc en t of the bal ance we r e fil ed ano nymousl y or by the :NRA offic e 

s t a.ffs. 

( **) I'irn e limitation s hr,v e not p e :.·.ni t t ed a detai'l ed s tudy and analysis 

9861 

of t he r esults of mass comnJ:i ance sur veys . Howev e r, there has b een 

coll ec t ed in a S'Jecial a-9 .. )endix a sel e ct ed nurn·oe r of r eports on 

Sl'Jecific surveys and other mat e ri al for furthe r study bJr the r eade r. 

·r he general conclusions s t a-ced h e r ein, howev e r, are ~we ll established end are based on t he va rious experienc es of the ComDli ance 

Division in t h is tyue of a ctivi t y . 
-1 56-

and fift four St a t e Off ic es. The course of develona1en t of com-Jl iance 

n roc 8clur e in the fi8ld, tra ced in Cn:=rp t er V, ::>.s wel l Cl s the ana.l ysi s of 

t he com1l e i nts system pr8sent ed ln t l1e p re ceding ee sections of this 

chapte r, d_ i s cl ose t hat t he r eli ance p l aced on cm;.r ~:.~ ru s as t !1 e sole 

oasis of p i'O Cer1.ure WqS UnS-3- tisfe.ctory. 

Numero·J_s ex-:Jerimen cs we r e mrd.e with shiftint; t he b asi s of ryrocedure 

to an inspec tion sy ste:n , and t h is was f ound, to 8n sw r !Ilc.my of tne objections· a. tt.s.cJ1e d to t he orig ina l comp l a ints -Jlan. These expe r·i ments , wnich 

we r e p o·Jul arly known a s 11 mass co::npli a.nce s·...1rv eys 11 , took seve ral forms, but 

ere . simila r iJ:!J. t hat ·t hey invol ve.d t he $l emen t s, of mass -p roductio n 'p lus 

a positive . cti vi ty in seal~ ing out viol a tion:s a nd obtaining co;-,Tplic:mce . (* 

Mass com,Jli 'ln c e was essentially 8. Jl a n for dealing it~ the bro "' d 

COffil)li ql1C e ~) robl e;Tl S of :=t r el a t ed s roup of employe rs. 'Thus, it was nossible 

to deal vv itl:. a situa tion with · a full kno wl eq.ge of the _f 0qts arld of the 

fundament al c auses of the . viol tions~ Thi s was the :i:n.t elligen t Vlay of 

att ackins t he Drool em, sinc e , 8S h,(-t;s been s~ ated , ·~ it out .such; a me t h od 

of treat ment, t he so l u ti on ·of com:?l L:.nc e ·oroql ems by corr ecting the violations of . ind.i vi dual ern,;loye r s h :::. d only a temJ?or:ary e f fe9t. . , 

Th i s t ;nJ e of !Jroc edure was l;:l ;cl on t he deal.ins with a. g roup of 

employers mor e or less .a s a un.it. _ Thel~ e was o·bvi c-tted to a . large degree 

the obje c tion · tha t incli viduFJ l s p roc eede d ,; a~n . we r e placed at C?m•)ett it i v e eli s c,dvan t age s, . since, the ore ti cp_lly a t l er1s t, all employers in 

the groun vve re ins·0ected and wen~ dea lt with on t h-e same b asis. ( **) 

, Mor·e·ov e r, being ·0. s.elf-ini tia t ed p roJe ct, .. camn li ance F.ctivi t ies 

under a lDC".SS CO!IlDli.::mce 'sys.t em We r e subj ec t to direction and cqntrol 

by the· a dminis t ,rative n.gency • . Ef f o:cts could be c onc entrat ed on pe rticular indus'trie s or lo cali ti Rs or co:uld be n roportiona tety distributed 

among ·s ev e r a l '.5rOU'PS, subject to certain me chrmic.a l ·limitations. This 

was a mot e efficient use of comp li Fmc e fr:tcili ti es, since although the oross 

admini Stl~ ti Ve exnense mi ght b e . increased,, the at i Ve r esults obt a ine d wen' much h i ghe r. Littl e dat a exists for an adequat e and accurate 

aplJr a i sal of t he r P.sults und.e r mP,SS comJli 1.nc e surveys a s against the 

adjustment of singl e com:.Jlaints. As a stri k ing illustration, however, 

figures co ;n il d i n Ohio in co mection with three citi es sho_w the follov;-

ing r ec onl of r e stitution before and P.ft e r survey s h8.d b een conducted:(***) 

( *) 

(**) 

A di s cussi on of the ori gin of mass com'Dliru1ce is contained in 

h8~ r V, s e ction 2 . 

In thG followi nl6 se ctio:.:1 t l.1e r e A.r e ;)ointed out t he n e eds of an 

effective .~ss COiltpli a nc e syst em, to p l --. ce t his theory of procedure 

in a ctua l oper a tion. 

(***) Se e Oh io St a t e Off ic e r euort on rn qss compli ance a ctivities, 

AUf:,USt 1, 1935. 

9861 
CI TY 

l-ro n 

Canton -

Younc:stown -

- 157-

Fu.ll Ye ·u 19 34 

(u ri or to surv ey ) 

q 1 179 . 9o 

E82 . 3:J 

So .... . ~n 

J an . 1 - ay )5 1 19.35 

( aft e r survey) 

-~ 4 ' :5'31 . 37 r ,186 . 03 

l:J 1 )'±7 • 9?. 

iVhile during the l J:t tter period ad jllstment tech11 ique had b een 

developed , this was co~t rbEJlanced. by an i n creased "sales resistance" 

on the part of respondents . 

!teport s from o ti:1er offj_ ces show larg e amounts of r e stitution resulting from mass CQm~1liance s:1.rv"lys, but :1.re not arr an.;;e d so as to be 

so easily cor11p ::. :c ed with results und.er tile compl a ints system. By way 

of examryle , the Los Ange l es St a te Office h a ndl ed -::89 c ase s under a 

survey conducted in the city of Los ~~geles, out of which 278 were 

adjusted -vvi th :cesti tution amounti ng to ~46 ,~76.6 . ·rhe b a.l ance of 211 

cases were pending on May 27, 1935. (*) 

It is imposs ible to estimate accura tely -c;hc EJ. ctual cost of ouerating under an ins~ec tion system since the re is sc a rcely any informat~on 

now available on this u oint. Time has not permitted "'1. study of the 

number of ··1 arsonnel used and needed in making various t ynes of surveys. 

Moreov er , it is felt •the value of this da t ::t must necessarily depend on 

the nature of ru1y future industrial regulations, 8nd whe ther they are 

apnlicable to a ll or to a selected group of industries. 

One of the chief disadv antages of the complaints system was that 

no 8Ction cou l d be taken unti_l a com:ol a i i1t had been filed and a cc ep ted 

a-s ·statipe; a :p rima facie c ase . As a result, it has been shown, violations went unreported for long periods of time and conditions of noncompliance became aggr avated thro.ugh n egle ct. Mass COIJl"?li ance had 

this adv~ntage, tha t the State Offices took the initiative in searching out violations and thus tended to eliminate the p iling u~ of violations in ind.ividual establishments. The complete accomplishment of 

this aim, ·of· course, v1 as not attained because the use of mass c"ompl iance 

surveys was still more or l ess in its experimental stages. 

Ey Ch:>n ging the basis of pro c edure I likewise' the prop,lem of "0rotection of com~l ainants 1 identities was g r eatly minimized. The source 

of information was made impersonal and the compl a inant's p l a ce was 

taken by t ':e State Office staff. ( **) I r1 t he p~onosed mas~ compliance 

or inspe ction system complaints would h ave been used only as one incidental source of information, inve stigation r el y ing chiefly on the 

inspection of records and the interviewing of employees. 

----·--------------------------------------------------------------

(*) See Los Angeles State Office report on ma ss compliance, July ?.4, 

19 35. 

( **) See Cha.u ter V, section 2 1 and section 7 

9861 
-} SfSu:rveys fell into GW O g ene r al classes: educ.<J.tional survey s and 

comDli a::.1c e investigations . Th8 fo r mer was t he most wic.ely er!lployGd, 

considerabl e exp eri enc e with .. ~duc tionsl surveys h-,ving been had 

especially in Ohio. 'I'he most notable exa:rrol e of the l a tt e r class was 

t he n.s tionsl .Boo t c-mC. Sh oo surv ey , "beg,inning March .2ti , 1934. (*) 

Whil e t he ultimate goal of the development of compli cmc e procedur e 

was the development of a r egul a r insuection system, for i:.westit5a ting 

t he c ode corjw;l ii=mce of employe1·s , there had to b e an int e rrred.iat e s tep. 

This wa s t :ae educational p roc ess wh ich is a l ways of p rime i:rmortancc in 

the acimi ni str ati or), of r egul ations a f fe cting t he daily business activities 

of l arge nUllioers of persons. The emplove r h acl to b e Luni s!1ed with a ' - · - Ci • • : 

cony of his obli ga tions and ·convinc ed of t he advisability of installing 

and ma int aining time card and pay:roll syst ems whi ch would simplify the 

t ask of c he ck i ng on comoli anc e . 

Such "))relimi nar y g roundwo rk for permanent comp li ance could best be 

done by a survey devot ed to t ho..t !)Ur:_l.] ose. Educ ationsl surveys we r e con----

duct ed. in sev e r c,l of the sjat es wi t h marked success. 

Unde r each of the ·tvvo -g ene r a l c,lasses Il!entioned above t he r e were 

two t ypes of surv ey s: by i ndustry .and. by loc ality. 'l'he l atter was used 

mn.inly to cover di stributing t rade s, w·Llil e t he fo rmer wa.s more adapted 

to l a rge industri c.l c en t e rs. Usua ll y c.:, c ombina tion of both t ypes was 

use d . 

Section 5 1\f;echaDi c s of the mass omnli r~n e system. ( **) Havj_ng 

briefly con side r ed t he acl.vi'tnt ages of op e r2. t~nc; on an i n spec ti on, rather 

than on a c •)m:plain ts b asi ;s; note should be t aken of some of -the mechanics 

emplo red il1 mass COifiT)li::tY!Ce SUl~ve;;- s. 

I . 

It was im:oortant ft.n the p l a nning ol' surveys firs t to gathe r complete information on the size of the indu stri es , the names of -employe rs, 

and the past c ompli anc e experience . This entail ed conferences with 

l abor ancl trao.e g roups , a study of complaints fil es and of availabl e indus tty lists, and furthe r conferenc es w ith members of the staff. Special 

attention h a d to l)e -paid to p eculiar char a ct eri sties of the indus try , 

such as .the t y-:Je of I'edoras likel y t-o b e encount e r ed, the locRtion nf 

the units , the g ene ral at titude of the g roup toward compliance, and other 

simil a r pertinerrt informa tion • .. . 

The nex t step was the s:eiection and training of the personnel to 

be us ed in the survey; Whe r e regular Fi e l d Adjusters were concerned, 

this st age comp ris e d oniy the g iving of instruc tions concerning the 

assi gnments . rioweve r, in a nurnber of surveys a ddi tion:J.l p e rsonnel was 

obt aine d on 8. tcm·)orary basis from the St ate Emer 0 ency Relief Administra tion. In the 1<· t t e r cas e , the new wo r ke rs had to ~ b e c qrefully cno sen, 

( *) 

(**) 

9861 

,. 

Reports of several St a te Offices t a:dng p e1 rt in th4 survey are 

'includ.ed in the SDeCit?.l mass :comp liance appendix . 

For descri 11ti on s of me cnnni cs of part icul n.r surveys , see reports 

included in special a:ppeildix. 
usually on the 0<-tsi s of mentr:.l C~l 1 n•~s , p Pr sont"li t y , ru d experience 

i n meeting the ~uulic . ~e li f work r~ e r e used ordinqrily only on 

educ:,tion 1 s1.: ·vey • ·rhe ne\1 wo r ·ers h..- d Go uc ce.refully trnined in 

the data to be secured. , t11e nethod of CIT)p ro ach to articul a r type of 

emoloye rs, and in the t chni(iue of I.naJ· ins fi e l d CCills . (*) 

The persom"lel used in the surv ey 1o.s usunlly divi ded in to teams , 

eRch headed by a CRI)tain . The CRntains in turn we r e unde r a supervisor, 

who \as dii~ect y rcs""[)onsi ol e to t he Lab or Compli a nce Office r or other 

membe r of the St ate Ofrice st a ff in ultima te char ge of the .surv ey. 

Assignments mi e;h t be on t he basis of territori es , as in l ooali ty ~u1 vuy~~ 7 

or lists of ST)ecific establis men ts to be inspected . 

In educational surveys t he wo r ke rs usually filled out c e r d r enorts 

on en.cn Cf'.ll ~md turned t!1em in to the supe rvisor fo r che cking each day . 

·r !e l c.t ter then follo•.varl u·• any rep orts of employe r s ' r efusing to gi v e 

information . 

In corrro li anc e driv es t his -p r ocedure was n e c essarily clifferen t. 

The Field Adjusters made inspecti ons C~ d usually tte~~ ed to obtain a 

signed agreement to Pt dj ust t he viol e tions wnici1 we re found . The de t a ils 

of t! e e:~ cLjustmen G we re t hen wo r l(ed. out oy members of t he staff assigned 

to that partic"G.l ar- nhc.se of the work . (This scheme of or ganization was 

r egul a rly us ed by some offices in the h andl i ng of complaints , see Chap ter 

IV, section 5 , sup r a . ) ""lhe r e tne i mmedi a t e adjustment of the violations 

could be made e.t t he time of i nsnection , t he cas e was usually so handl ed . 

This , h oweve r, WEt S -,)o ssibl e in only a small -perc entage of c ases. 

Foll ovving the day ' s insuection, tl1e Fi e l d .Adjusters made ind ividua l 

reports on each c a se . These we r e r evi ewed, and tho s e showing viol a tions 

were turned ov e r to the adjustment staff . The l atter then arranged con~ 

f e rences with the v a rious em)loyers ano. att em--Jt e d to work out adjustments. 

Following the comp l e tion of t he surv ey, t he r esults we r e t abulated 

and the data t;at hered was p r epnred for futur e us e . 

From the foi' egoing there a re indica ted c e rt a in n e c ess a ry elements 

of an effective and effi ci ent inspe ction system. For pur po s es of summary 

t hese are meti tioned bri efly, without a r epe tition of t he expe ri enc e s on 

which the conclusions a r e b ased . 

Fil'st , there must be intelligent a nd c a r eful p l anning of surveys 

and all relevant f a cts must be availaol e . 

Se cond , t here is n e eded an adequate and tra ined staff. Se l ection 

of the T>e rsonnel s hould be on a merit b c.s is with due rega rd for the 

requisite qua lifica tions of the p articul qr jobs. Espe cially, the Field 

Adjusters should b e t ho roughly tra ined in the policies of the organi-

~ation an d in methods and t e chniques of inv e stigation and adjustment 

(*) See particul e rly the Ohio State Office r eports. 

9861 
-160- . ·-

b efore being assign~d _. to a ctual ~or:k ... : In setting up the scheme of 

org anization .. us eless executive pos:i tio~~ .should be eliminated and the 

emphasis laid on creating a large enough staff of Field Adjusters to 

carry out the program. Tl).e importanq.e of. _,Field Adjusters is refl e cted 

by the f a ct that · ov~r 54 percent of the docketed l abor corrpl a ints were 

closed through this medium. (*) · 

Thirci , the authority to make insp e..;tions should be cl ear. It is 

highly imp or tant that not qnly there be authority to ins-o ect records, 

but tha t rea sonable requirements be introduced for the ma.intenance of 

w_age and hour records. 

Fourth, the re should be an effective system for following u~ 

ins-o ections with a speedy -procedul~e for enforcement (including administr.ati ve relief).. There should be a cen tra.li zation of responsibility 

for completing adjustments not disposed of immediately in the field. 

In advancing these r ec:Jmmenda.tio n s in the form of conclusions, 

it is contemp l9,ted that the .most· effective permanent procedure is a 

routine inspection system, under which the efforts of local offices 

would be coordtnated into a nc=ttiona l scheme. This would haYe to be 

sup-plemented, however, .by spe cial inyestigations, and should be presaged 

by educational surveys to acquaint industry with its obligations and 

to establish goodwill. 

It is, 1.mfortunate that th~ rapid strides being ma de in the development of mass compliance methods were abruptly terminated by the invalidation of the cades. However, sufficient experience had been had in 

this field to convince members of the Compli ance Division staff that the 

use of ma ss compliance me thods presented a more pra ctica l means of administration of labor standards tiln.r+ . the reliance originally placed on 

complaints a s the sole ba sis of activity. 

- - - - ---- -- -- - 7-- ----;. ·--- - ----- --- - - -- - ------- - -

(*) See table V, apnendices. 

9861 
-J: lPAiiT IT 

Cn··pt er VIII - St o.tistical Summa ry of the _"\.ctivity of the 

Com9li n~e Division 

Se ction 1. - A. Basic Da t a . 

A system of reportin,-:; 7< s maintained by the Com-yli-3.-!J. ce Division 

tnroug~ out the pe e:-~ t 1ng ::>er :;.od of NRl. ~-..e:;> ort s ':7ere designed to p rovi ·e the l1Jc.t io!1al Off1ce · it ~l ~1 1ndication of the r e l . tive efficiency 

o the field off1ces fu d to g ive those directly responsible for the 

ad:ninistration o1· the c- rious codes a p icture of comylia.'1ce co!ld.l t1ons 

1 t:1e industries r. i th ., .. L1ich they we re concerned. 

Because of Q Series of chc.Hlg es m ue c)t different tlmes in the 

d ... ta requ1red in th e curre::1t r e}orts "'·10.. tne inadequacy of the reports 

for sta tistical pur _f) ose s an entirely ner1 <malysis of state and reg ional 

office cases riC?.s m_O.e subsequent to t!1e Schechter decision. The following tables na ve been comyiled from these rnore or l e ss u..-·1iform analyses. 

The figures do not includ.e all reported violations of l~ codes due 

to the limitations on the jur1sdiction of the Comp liance Division. They 

do ::1ot inclucie ca s es originally r~ceived. £nO. acted on by Code Authorities 

,·nd other s-s:>e cial adjustment ageacies, (*) nor do they include complaints 

received by the complic:mce offi.::~es and forwc.rded to Code Authorities. 

·rne figures presented. here are thos e for the NR.A Stc:.te Offices, excluding 

those which were referred to the Comy liance Division a nd. :R.egional Off ices 

f or special ad.mi . istra tive action. 

In analysing the case record., c: ll cases Wflich o;y ere handled to a conclusion by the st a te offices and the files clos ed by them were included. 

In a ddition, all cases pend.i::1g on \i.ay 27, 1935, wh ich had been developed 

sufficiently t o indice. te the existence of a vioL; tion a.nd its character 

~' ere analysed and includ.ed in tile tabul e tions. 

Omitted from the count '."Jere: 

a. All ca s e s ~;h ich h;_ d been ref erred to higher agencies or to enforcement c.gencies <:'.ft e r the sta te off ices haci exhausted methods designed 

o secure an adjustment. The numbe r of these cases is shown in Table XXIV. 

b. Cases refered to Cocie Authorities on reference prior to June 16, 

1934, ·:1 ere exclud.ed. (**) These complaints ..,-ere referred with the requirement that a rep ort be submi tteci on their disposition and subject to 

the right , of the co npliance office to res'IJ.I:le jurisdiction a nd to hDndle 

the case if the Code Authority's a ctio::1 s ere not deemed adequate. Since 

the files on :nost of · these es had pu ssed out of the 90ssession of NRA, 

the detailed infor'1at ion requi:::-ed in the case analysis was not available 

(*) ~hese i 1clucie tl e Ne:~tional Labor .Bo rd, i~ c. tional Labor Relations 

Board., the v.::-.rious Regional Labor Boards; the Cotton Textile Industrial Relations 3o2Id and its successors; tne Petroleum Adminis- t~ative Boara a~ci the Petroleum Labor Policy Board; the Agricultnral AQjustment Administration; the ffederal Alcohol Control Administration; 

and a numb e r of special boards established for particular industries. 

:B'ootnote continued on next page. 

9861 
-162-· 

a nd, although the Compliance Division v<as r esponsibl e for their being 

s a tisfactorily closed, it has be en nec ess. r y to exclude them fr om the s e 

st a tistics. The nUI:lber of such compl c..ints is g iv en i n Tabl .e 24 . 

c. Ca ses r eferr ed to the Code Authority in the first instance n rior 

to June 16 , 1934 , a re omitted. 

d. Mass compliance insp ections, or requests f or an investigation by 

a Government purchasing agency, were not 1ncluded unless violations were 

disclosed. 

e. Comp laints pending on ivlay 27, 1935, vJh ich ho.,d not been 

gat ed at the t ermina tion of the Com li nce Division a ctivitie s. 

number of these cas e s is also g iven in the follo i~g chapter. 

2. ethod of Prepa ration of .St a tistics. 

lnvest iThe 

· As ha s been explained, the d.at a 0:1 st&t e office op era tions has been 

compiled from case analyses prep2.red by- t h e f ield offices from their 

records subse quent to May 27, 1935. Thes e anal y ses were checked in 

Wash ington to ascertain \vhether reJ) orts :nad been prepc:..red in accordance 

with instructions, .(*) all questio11able ite:ns b e ing checked against the 

cas·e file. The ma t erial was transcribed ·by t h e ' :a shing ton staff to a 

form suitable for gunbh-card tabulation. Arrang ements were made with 

the Bureau of the Census for machine t a bula tion on the basis of plans 

worked out by the Ste .. tistical Section of th e Field Di-vision. 

The cases a.'Ylalyzed were divided into t wo principal cla sses: labor 

cases, comp rising those cases ciea ling with viol2.tions or a lleged violations of wa ge, hour and generall a..bor ,;? revisions of codes a nd of the 

Executive Orders dealing with t h e p osting of labor p rovisions, discharge 

of employ ees for making complaints and emp loyment of h a.ndicapped work ers; 

and trade p ractice cas e s, including cases arising unde r p rice, fair trade 

practice and g eneral administrative provisions. "Tn ile there may be some 

objection to the inclusion of "administrative viola tion s'' in the trade 

practice group, certain of them, such a s failure to file yrices, r ate s 

and tariffs, failure to supply statistical reports cJld failure to comply 

with various types of registration requirements, a re closely related to 

(*) For instructions issued to St a te offices g overning prep<; r ation of 

analyses see mimeographed lett e rs from J. H. "7&r 6., Assistant Field 

Division Admin1stra tor to Regiona l cmd Sk .. t e 1\fR \ Directors, d[;.ted 

July 10, 1935, and August 3, 1935, subje~t "A.r:taly sis of State Office 

Cas e s". For instructions for periodic st.:> tistica ], report.ing during 

the active period of the codes, see F i e ld ette r No. 154, August 25, 

1934. In NRA Studi e s Spe cial Exhibits Work !,lat eria ls #85. 

Footnot e -from p r e c eding page .. 

( *'!') Orig ina l :9lans for t he survey i ncluded cases s ent on r eference to 

the Code Auth oritY: prior to June 16, 1934. Ana l yses "'!ere received 

for 475 l a bor and 126 tra ci e L)r a ctice ca s es only, and these we r e 

ornitt ed ·from the majority of the tabuL ~ions. 

9861 
6~

trade nrcctice reg1.1.l c:tions. lurt he rmon.:, !"~ ince thi; br ruc~,..o•v n was 

u sed in cl.,_ssify in&; c n.ses fo r r G ')Orting Gnc1 for filing nur0oses 

p rior to the Suu r eme C01_1r t declsicn , it " '"'S n ot thought advisC'ble to 

introduc e a b rsic chf' n •;e in cln ssificati on s . An ~dcl itlon l brou"O of 

cases e1 na lyzed •re r e tho se invo lvinf:: a lleged. violn tions of the 

Pr esident ' s Reem,Jl oyment Agr eeMent. 

3. Definiti ons of Te rms Used . C).,_SE : 

In gen0ra l, 2.11 corJllJl c.int s ··rhich ·.:e r e va l i o. on t he ir frtce wo r e 

d.ocketed f or investi:_.,r ti on. 

Since the forma l a cc e'Jt e'lnc e ;' .. nd do cke t i nP.' of c:. com·ol a int involved the lJre~ tion of sev e r a l c a r ds for v ?rious c a rd files a nd 

the making U"9 of 8. j a cke t, it became nec e s st:'.ry t o exc e-p t c erta in 

clr sses of c omvl a ints fr om this 'Jr ocedure b ecaus e of their volume. 

La r ge numbe rs of ccmula ints cbn r ging viola tions of dministr tiv e 

u rovisi ons of co de s, usu ll~r f r.ilure to fil e ric es or sta tistics, 

anc1 f ilure to r Ggi s t e r · ·ith t he Coc

1

.e Authority for the industry, 

we re filed :.,i th St c:.te Offic es of t he Comolirnce Division by Cocle 

Authorities. Since the s e com,_) l a.ints we re usuP.lly in the form of long 

lists of inc:.ustry members, or conc e rns suu,;osecl t o b e subj e ct to the 

Code , do cketing a com"9 l e.int aga inst each conce rn ·jould ha.ve imu os ed a 

heavy burden of clerica l ·work in offices which •i7e r e a lready ove rburcened. Often many of the c onc e rns cha r ged ith violations Ne re 

no longe r in business or not subject to the co c"..e plleged to hP.ve 

b een vi ol a t ed . Field office s -re re t he r efore g r anted permission to 

ac t on the s e c om-o l 2.ints, usua lly by 'I'Tri ting lette rs to the res ondents in en effort to s e cure com J.i nc , wi thout the formality of 

mak in~ uu a docke t. (*) 

Uon-pa:yment of 2.ssessment ca se s, ··J rope rly. c e rtified by the Code 

Authority , end conta ining no othe r t y'? e of viola tion, we re fori-varcle d 

without docketing by the State office to the Contribution Section 

of the ComDliance Division in -:-:-?.shington. (**) . 

Excep t fo r com,_J l c:..ints such as thos e d escribe d in the fore go ing 

paragra'Ph , the first com int against a c oncern Bas normally docketed. 

During the early period of comv lia nce ctivit ~ efforts were directed 

tm-.arC::.s adjusting individua l c.omJlLints. (***) La ter, stress was 

placed on the nec e ssity of clea ring u u a ll violations in any establishment comola ined ae;a.inst.· In line with this developnent, instructions 

we re issued to sttc.te offices on August 25, 1934, tha t a ll successive 

complaints against 2. c oncern on '.'hich t he re '.7as a n 0:9en fil e ,rere to 

be joined to the evious 'fil e , ry ith the ~J ose of securing one adjustment of a.ll violations. · Sep c::.rate fil es a gainst one establishment 

which we r e open ?-t the time ;-re re to be consolidated. ( ****) If ne·:1 

( *) . 

(**) 

. ( ***) 

(****) 

This occurred n otabl y in the c ase of the Trucking Code. See 

Field Letters No . 156, August 2S, 1934, .1; No. 167, Oct. 1, 

1934, p . 1; and No. 176, Novemb e r 3, 1934, p. 1. 

See Fi e ld Letters No . 164, Se"9 t. 21, 1934, i) . 1, 81ld No . 169, 

Octobe r 10, lS34, ~· 1 • 

Chent e r V, Section I •. 

Field Letter rJ o. 154, August 25, 1934 . 
-1G4-

com:o l a ints '"e r.e.: .:filed: a ft e r the closinc; o:f fil es on 

p l a ints, it was Gu.stomary to mek e uu a ne r doc ke; t. 

p r .: ctice C0m-0 l q.·in.ts.' against t h e s2me est lis :C.ment 

CC'Xrie cJ_ on se-J :. ~e dgqke t n11Inb ers. 

urevi ous c omL.-::h or a.nt tr"de 

·--ere frequently 

The t e rm 11 ca se 11 as us ed in th e stQ.tistics doe s r:.o":~ t 'terefo:-e, 

n ece s S·"'.ri ly reu r e s ent a n ind i vidu8.1 comp L-.i:at 1 ·: :- c' r_,.: ~ i -;:. ·• >::rnys 

ren res ent all of the m, .t e ria l a gainst a s i n.:·)::: c or·c;( r:J. 1:18 most 

n early a ccurate rlefinition wh ich cp,n be ~iii 8H i s 1:.h:--r i .t s •:Jstitutes a doC? ke t of compl a ints, usnc:>.l l s ~· ::n +; cne e; ;;; t; c;" ~i .s h.t11 ent 

or branch est ablishraent, -,·,hich ~.7R S ha . ~~ 1ed_ as 8.n enti i y by the 

field office. Fic:ures on the numbe r o:"' snr:cessive COJ.TDL-,_ ints 

against the same est.c- b2.ishment a r e . L :c l urlcd. in the s e t c-.. s~ and.. 

a re discussed in the following section . 

Adjusted Ca .. ses: The se ca.s es r e·0re sent do cke t s sa tisfa ctorily 

closed by the Sta te Off ice . ~ivnile the Div ision's ·ool icy a s to 

adjustment unG..erwent dt...: veloument ·a nd. change during the .nine teen 

months of it.s existence,. the ·adjustment 0f ·business u ractices or 

of \70rkin[: conditions within an e.'st ablishment to bring about full 

conformi t.y with cocle requirements Ym s a l·,ays considered essential. 

The "Manual for the Adjustment of Comryla ints 11 ( NRA. Bul letin ·r;o. 7) 

issued in Janu,ary,' 1934, specified the making of neqllitable 

restitutio.n for nast violations" as a conc~_ition pre ceC.ent to the 

filing of a ·comolc..1.int as adjusted.. In J·une, 1 S34, st o..ndo.rds for 

restitution -payment wer;e defined a s the lJayment of a ll ':iage deficiencies ulu-.s .. a uena lty r a te for r.ll illeg.:'.l ove rt;i:Je •7 orlced. .These 

stP.nda rds. ·--ere further ela.borat -:. d and refined during t he following 

yea r. A l a rge number of cases vvere settled. ~i thout the requirement 

of b a ck-wage -oayment, honever. (*) 

In COJ;lne ction with viole.tions of trC'l.de '?rP.ctice and. a dministr8.tive r egulations, t~ e 11 aC:.justment 11 of a ca se n ormo.lly r equired 

the cessa tion .. of the · viola tion a nd t he filing of a "certifica te of 

comuliance 11 , an agreement to comply ':7ith code requirements in the 

future. ·:11ile Bulletin !To. 7 made no distinction betr;een bor and 

trade p r a ctice complaints in the requirement of " e quitable restituti~m", . in :practice it was· usue,lly imuo ssi ble to determine the extent of c1ama ge c aused by viola tions of trade ur8ctico -p rovisions or 

the '?e rsons r1ho had been . directly ii,ljured... 

No Viola tion Cas es: The s e cPses rep r esent compla it1ts a cceuted a s 

a deou:· .te but found crlter inyes ti g~ ti n to be -,7 i t l10ut a bc.:.sis in f a ct. 

"Prima ry .r ejects 11 , as ex,Jl a ineG. above, a re not included. 

Dropped Ca s es ; hese . r eu r esent c as es in 1J"Jhich viol a tions <:7ere found 

to exist, .but ·-rhi9h could not be settled by administra tive action a nd 

i'le re not conside r ed sui t r>.ble for litigation or furthe r n.ction. Labo r 

tota ls iri'clud·e 5~6 case s in the nine serv.ice j. trad.es 8.nd.. in the 

RestaurQ..11t . Ino.u st:ry , ,,-:hich v;ere dronned E~ fter remoy[1_l of the }IRA insigni <". ' 'by . t he St a t e :NR4 c ?m"9iicJ?.Ce :Dir ctor~ 

( *) See lo· , to,1 ic of ~~ ~V'2g e Resti tuti on 11 e nG_ a ls o Tables VII I. 

9861 

.. 

,.. 

"-. 
In tr~de p r. ctice cc s e s, if the "Ornctice coMDluined of c l3ased to be - . . a co de viol.:-.tion, because of a ch:. nc:a in the ·cod.e ( e . g ., p rice-fi... ing 

under the Cl ee.ninb o.nd. Dyein~, ... Code), 1.me.dju:,t ed. violations nere normall, 

dropped. A simile.r ci rcumstcnce a rose r.r}1e n COffiJ)liance '.'i th the Lumber 

and Timber Pro ducts Co cle \·.ras made volunta ry aft e r Ap ril 11, 1935 . The 

rnajori t, in this cla ssifica tion of cases 'ere dropped, however, because 

they \7e . e 1m sui table fo r litigation, sometimes because the viola tion 17a s 

minor or of a technical nc.ture , often because the r e sp ondent was small 

and only an unim-yortant factor in his industry . ( *) 

Pendinr: Ce.ses: This classification includes those cases pending on May 

27 1 1935, -rrhich had been ir..vestigat ed sufficiently to disclose the nt:1ture 

of the violation. 

iolntion: A violation r enr e sents a f a i lure to adhe re to one code p rovision. In t'1e count of viol c.. tions, each coc1e p rovision involved. in a 

case is sl1o-rm e.s e. separate violation. 

4 . Limitations of Data : I n using }iliA State Office figures to evaluate 

the extent of compliance with lrRA code p rovisions, one must consider certain definite limita tions on the data. 

It should be emphasized. that these figures r epresent statisti c s of 

non cOP'l~'Jlience r R ther t l:a.n stc ti sti c s of com1)lic.nce. :B,urthermore, the 

volune of comnlaints i s for tl1e most Dart the rasult of individual initia - ' J.. -

tive of those n,ho suffered from cod.e violation rather than the result of 

a census of c.ompliance conditions in the in dustry.('~~*) It is known that 

a ':'ide spread. condition of non-compliance coul d. exi st in certain codes and 

certain 2.reas uithou t statistical evidence in t he form of complaints 

lodged by indi vi.o.ual complainants • 

. 'I'he figures of NRA State Offices do not rep resent the entire volume 

of complaints because of the d.i vision in compl a int C" .cti vi ty between l'J:RA 

State Office and Compli::mce Di v ision and Regi onal Offices, the Code Authorities, and the g roup of spe cial adj'cl.stment agencies, such as the Petroleum 

Labor Policy Board, and other a,gencies li stec1 e.bove. A dramatic illustration of this division is found i n the Schechter case, ·which originated 

with an e.gent of the Co de Authority , and. went to the C(lurt s without passing 

through either the NRA Sta te Offices or the Compliance Division. 

The figures do not represent the entire volu~e of cases passing 

through the State Offices, since the survey is confined to do cketed cases 

only. Cases referred to other ag encies, cases rejected at the outset as 

not violations, c ases involving assessments or registration, inspections 

for mass compliance, or at t he request of Government purchasing agencies 

not r esulting in the discovery of violations, a r e all excluded. 

There are also variations between offices in docketing practices 

and in the inte rpret ation of the i nstructions g iven, which result 

(*) Chapte r V, Section 9. 

( **') For a discussion of the two types of approach to compliance, individual complaints, or mass compliance , see Chapter VII, Section 4. 

9861 
-166-

in some consistent bia .se-s .in the figures. The s e Tiill be uointed out in 

connection vrith ind:ivfdual tables. (*) ·· 

Section 2. . Serie.s of Table s of Cormlaint Statistics. 

The figures have been reported accordi'ng to the :provisions 

alleged to have been viola ted. They fall accordingly into three 

grou-p s, one for labor violati.ons; cC seco ~ .. d for violations of tre.de 

practice and r,clministrative Jrovisions; and a third for violations 

of the President's Reemployment Agreement. Viole.tions of code 

provisions h :-.ve been t abu1Btec3. first ·by Sta te Office, a nd second 

by code. 

Only selected tables are ·ore sen ted here. Of those included 

many show only national totals o De tr..iled figures a·re available in 

the records of the Sta tistica l Section of the Fi~ld Division. (**) 

Evaluation of code e::-~erience necessi t ?.tes com·oa rison of reuortecL figures with census da ta , to determine volume of complaints 

in relation to an externa l sta.ndard. Figures for relRtive numbers 

of em·oloyees and est0blishments in the industry a re ess entic:1.l to the 

interuretation of the code figures. 

(*) . There ·is 2lso a margin of error re sulting fr:::J m the mere number 

of c2.ses to be ·subjected to case analysis. ~:mile it '.7a s intended 

that the analyses· should be ')re-oe:re .-_ by com'Jlip,nce officers, 

field nd.justers and others familiar i th code ·0rov1slons, in 

some instances the clerical ·sta ff 'I!'Jas dra fted for the work. Although the reuorts as submitted to 7e shington were checked for 

consistency El.nd numerous correction letters -, ere 111ri tten to the 

field, it is urobable that miscoding ~. nd transcription errors 

rema in in the original re·oorts received from the states • . The 

fin2.l co cling which rras C. one in -:-;-r, shing ton v7e,s checked and 

edit ed ~ and the punch c .s.rds verified, so t hat mechanice.l errors 

of this type ·were cut ·to a minimum. 

(**) See T!?e d. x I, Index of Table s. 

··. ' ' 
- 107-

-_, __ .,.'_\1 l.~.AHY OJ} CODE CO.:PL r:~ns 

The ~ummary :t.i u::o ~; f or the r:."tA St; t e Of 'l eo o · ·L+.intr- ro_oorted. 

in the survey rt.L o !;._o· ·;.1 Li1 the f olJ.o··,in , tnble : 

Co.r: s ... ccepted :fo r Inve st i u tion 

Octo ~Je:: 19 , 1933 - !.lay 27, 19)5 .. I 

':...:/ 

:Jacketed 123 , 1S2 

Adjusted 

No vi ol a tion fm.mo. 47 ,312 

Dropped 

Pen(i.i nc 10,)"(7 

Inve. tigated 

Not in esti te ~ l.~ , 515 

------------------

36 ,977 

19,674 

8,094 

5,295 

3,914 

3,362 

552 

§} The }.!'"B.A. St c.t e Ofli c8s ·.·ere officia lly a c t ive :fj:ora Octobe r 19, 1933, to 

t.1 ay 27, 1935 . .\ ·Got . }_ of 114 l abor cor1pls.i!1t s z:- cce}:it ed by otl1er 

agencies p ri Qj.' t o t~Y-. t C.ate have been inclu.-.e 0.. j

1

i ;_;·u.res fo r 475 labor 

and 126 trc=> r:i.. e 7 ) J.' cci ce conmlail1ts sent on r ele:.' C!1ce to code authorit i es 

p rior to June i S, ~)~!- , ~.r o be 'n excludeo.. Lc:::oo r totc=> l s a lso excl u cle 

236 cases re:portc ·,_ z:-.s -~ a .. :· e :pr n.cti c e a nd ubse ~.'t-le!1 tl~r found to be l abor. 

Prepared by : 

St !'=ttistical Se ction, 

Field :Ji visi on , iJl.A 

~ebruary 28, 1936 . 

9861 

8\a\e Oftloe Serle• 

UBI& I-. 

c.o 

JBI. SUD ORIOS OOMPUII'l' Su.!IS!ICS 

CX' Buaber of Labor Code Caaee IDTee\lca\ed af cr. 

...... October 19. 1933- ~ 21, 1935 

Out Qo:!W Ito lire~ Co8Pla1n~ AS!inet r••£2ndent• 

Office a Jlo 

b7 Docketed .A,4Juated T1olaUon Dropped Pending ...... 4 .A,4Juah4 T1o1aUon Droppid Pen.di114: 

he ion 

Total all officee 118,677 50.24o 47,312 14,663 6.462 92.135 39.492 37.794 10.583 4,966 

Total, Reg1on 1 11,672 5.~~ 5,203 470 5~ Maine 9.2~ 4,3JO 4.120 J20 4~ 666 294 86 502 162 225 I' Jew s.a.peb1re 595 297 246 21 31 502 248 221 19 

Yeraont 132 59 42 4 21 125 55 41 4 25 

Maeee.chuae_tt• 7.429 J,6o8 J,~ 128 339 '·~2 2,981 2, 778 12 261 

lhode leland 1.210 453 

62a 

87 21 1 2 283 4ol l~a ~' OonnecUcut 1.64o 113 144 99 1.243 6<n 454 

!o\&1 bgion 2 11,153 3.571 7.152 5.551 879 14,124 J,l12 6.424 3.795 793 .Ub&DT ••• Y. 1.584 502 t 398 32 1,231 JS2 517 310 22 

Buffalo. •· t. 1.851 791 91 . 15 1,474 610 78a 71 10 

Jlew York, •· Y. 13.718 2.278 5.552 5.056 832 u.419 2.120 5,12 3,414 761 

To\&1 0 lleg1oa 3 18.643 7.276 8.336 14,J65 5.763 6.4Ja 1,1014 1,<>65 ....... 1,513 1,518 Cf':' Jlew Jeraq 2,J88 1.134 1,0146 117 91 1,907 907 ~3 95 1l 00 

Ph1la4elph1a. Pa. 6.223 1,989 J,OlO 505 719 ~.687 1,519 2,308 392 46S 

PUhburp, Pa. 3.125 1.423 l,J45 168 189 2,316 1,083 986 123 124 

Delaware 284 70 97 98 19 239 52 86 83 u 

llar7l&Dd 2,~~ 581 963 461 228 1,519 394 687 279 159 

D1etr1ot of Col. 582 327 10 30 846 535 283 6 22 

T1rc1n1a 2,255 992 1,112 38 113 1,829 ~ 880 30 86 

Borth Carol~ 1,186 505 436 116 129 1,022 369 96 117 

!o\al. llec1on 4 10,487 3.839 J,996 1,945 101 8,5~ 3.058 '·a~ 1.534 577 

South Carolina 1,179 336 443 ~2 31 1,~ ~ 266 29 

Oeor£ia 2,192 968 741 119 1, 529 268 82 

llor14a 1,270 4014 ~ ~~ 227 1,05~ 303 272 274 2~ 

!enneaeee 1,630 715 128 1,27 589 324 276 85 

.Uaball& 1.575 381 813 259 122 1,512 ~; 792 24o 122 

M1ee1111pp1 1,068 533 4oo 124 11 931 340 92 10 

Lou111ana 1.573 502 1!52 156 63 1.177 345 671 118 43 

!o\al ,lleclon 5 11,156 5,4014 4,403 985 364 8.1~ 3,988 3.190 731 256 

Michica;n 4,133 2,026 1.699 282 126 2.7 1,351. 1,079 193 81 

Oh1o 4,839 2,~~ 1.957 343 1014 3. 798 1,921 1,535 263 79 

'feet Y1rc1n1a 1.029 480 71 44 784 ~ 372 59 41 .. nhck;r 1,155 509 267 289 90 879 204 216 55 

State Office Seriea 

'Offices 

b;y 

Region 

Total, Region 6 

Wiaconain 

Indiana 

Illinois 

Miesouri 

Total, Region 7 

Minnesota 

Iowa 

Borth Dalt!)ta 

South Dakota 

Nebraeka 

Xanaas 

1f;yoming 

Colorado 

Total, Region 8 

.Arkansas 

Oklahoma 

Dallas , Texas 

Houston, Tex. 

New fixico 

'l'otal, Region 9 

Montana 

Idaho 

Utah 

NeT ada 

&rhona 

Washington 

oregon 

Loa .A.ngelee, Cal it. 

San lrancilco, Cal. 

Docketed 

12,138 

2,0,8 

2,804 

5.072 

2,204 

11,100 

J,o49 

1,~~ 

4$4 

2,335 

1,221 

314 

1,168 

10,232 

989 

1,881 

3,212 

3,830 

320 

16,096 

860 

510 

38? 

646 

431 

2,779 

1,400 

6,060 

3,025 

Oate Count 

No 

jdJuated Violation Dropped 

5.oo6 4,428 1,543 

824 61~ 195 

1,323 864 339 

1,994 2,213 519 

865 737 490 

6,090 3.707 988 

2,251 678 76 

800 995 151 

159 172 

238 202 2~~ 1,166 952 77 

~~ 4oo 213 44 17 

657 264 207 

6,0}1 3.299 550 

355 559 5 

1,149 ~j 166 

2,143 173 

2,270 1,275 188 

114 188 18 

7.593 6, '{88 1,118 

555 

163 

185 

347 

95 

215 103 

471 1a1 ~ 252 1 9 4 

1,120 1,327 

691 632 2~ 2,793 2,371 57 

1,333 1,543 96 

'UliLI 1-... 

Kil ST~ OlliCI CO~INT ST~ISTICS 

llluaber ot Labor Code Cases InnaUgahd 5} 

October 19, 1933- MaT 27, 1935 

lira\ complaint y:ainst retpondenta 

lio 

Pend in& Docketed jdJuated Violation Dropped 

1,161 9,228 3·lSl 3.384 1,137 

425 1,727 97 520 145 

278 2,259 1,052 690 287 

346 3,489 1,335 1,577 343 

112 1.753 697 597 362 

3~ 8,660 4,699 2,996 732 

2,164 1,607 471 54 

39 1.a4l 593 813 107 

68 132 157 

10 340 1~~ 

~ 155 

140 1,871 768 54 

33 l,lo4 546 384 141 

9 250 195 34 14 

40 922 520 214 159 

352 8,286 5,028 2,570 419 

70 763 2!7 424 5 

132 1,493 943 318 121 

53 2,606 1,783 649 1~4 97 3,149 1,917 1,018 1 3 

275 98 161 16 

597 12,295 5.733 5.34o 811 

25 735 491 151 78 

460 137 323 

37 ,02 161 89 23 

24 321 81 22 

26 323 190 111 2 

102 1,910 756 ~ 138 

32 1,109 554 1,~ 29 

322 4,626 2,121 441 

53 . 2,4o6 1,002 1,2-f} 78 

~ •Exclude• Complaint• Sent to Code Authorities on Reference Prior to June 16, 1934. and alao 236 caeet reported b7 atate o!ticea u 'l'rad.e 

Practice and aubeequentl;y rec1aaaified ae Labor. 

Prepared. b7: 

Statiatical Section 

lield DiTit1on, HRl 

2-14-}6 

Pend inc 

926 

365 

230 

234 

97 

233 

32 

28 

4 

100 

33 

7 ...... 29 cr. 

CD 

269 

47 

lll 

4o 

71 

411 

15 

29 

20 

59 

27 

218 

43 

- J?nA. Sum· ary o_f_~_GQ_o_l' . .G.9~. 1: . .:--int_d;at i sti cs. 

Tabl e I is tho "uo.cic tubl e showing the nurl'oe:· of l 'loor complaints 

under codes cc te~ ~or investigation and the rel-tive sha re of each 

offi c • 

This tabl e i ncluc·_ec 1.:-.b or case s docketed f r on Octo .oc r 19, 1933 , to 

.ia~ 27, 1935, the ~) erio c'. (:t.uing whi ch the off ices \Je l" e offi cially C1.ct i ve. 

In adrli tion to the se it i::.cludes 114 case s recci ved. ~~ ri or to October 19, 

and P ccepted by co ~ e:' t L .c; <'{tz:en ci e s such as · t~1e ~Ju. e,u of :B,o r eign and 

Jo~esti c Commerce. 

F1·om this tC'.bl e :·. :.'e e::cluded 4 75 rep orted C .:' ses .:~:. i ch · rere sent on 

refe rence bJ the St - ·ce O:Z : 'ices to the Corte Authori t i e s rior to June 16, 

1934. Inadequate l'eco:.' .·.s in t h8 offi c es macl e it i rro ossi bl e to make ana l y s e s for c ases in t ' _is co.tegory . A t otal of l.~o9 he."..::_ b een rep orted 

as c ases sent on reference t o Cod e ~lthorit es , in Tieekly rep orts to 

June 16, 1934. 

The table a lso e:-clu:".ed 237 l e.1:x:n cases n ::dch ·:!el'e originally reported by Ste.te offices <='-s ·c r ,:--_..-_e p r ttctice cas e s a nc. rre:· e su·o seguently found 

to be labor ca ses. 

The r eported voh,s.!e of complaints i s affectec-:.. :·.1a::.:·~ ::e cil y by the omission of 4, 515 l a oor cc.scs pending on 1.1ay 27, 19.35, n!1i ch had not been 

inve stiga ted suffi ciei1'~l: • to ascertain the extent of violation or the 

amount of wa{". e re stituti on due.(*) 

It shoul d b e JTO~l<'.s ::::e d that Ta ble I s ho'.7S vohuJe of docketed complaints only . 

The rig ht hand :'}Ol'ti 011 of Table I shows c2.ses cont a i ning f irst compl a ints against re sp oni..-_ ext s. This is pre sent eo. L 1 C"ll ef:fort to approximate t he number of es·~.:- o:.is ,_1 ments against '.7 ~1. ich co:·.::pl.:--.i nt s r!e r e fil e d. 

First com··)l a int s re~)l·esent 78.2 :per cent of the t otal compl a ints 

docketed; 78 .6 pe :c ce;, t of adjusted complaints; 79. 9 p e :c cent of no violation cases; 72.2 p er cer_ t of dropped cases; e:~ ne. 76. 9 p er cent of p ending case s. 

A separ ate count ·:·c:.s ~ak en of case s re:!)ort e o. o:r c.ocket number and 

code number, but c r oss l'eferenc ed to another d.o cl:et nuJ:1ber f or their 

basic infor:rnat ion . The:.:e ·.·:ere 1, 541 cases of s·uccessi ve compl a ints of 

t his type r e:port e0. c:.s .ro ~Jp ed . Of these , 1356 ·:.re :i:e l" ep o:o:-ted by the Nev7 

York City Off i ce . ~".. s s~ 01 l d be not ed in co muen L1:~ on the l a r g e number 

of case s dropped b:7 the ::e•.; York City Office. Fi.'l.Li.'e s i n. Table I s how a 

total of 5,056 c ase s C.ro::_J::_Je d. by this office , but th2.t only 3,414 case s 

were first compl 2.i nt s ;; o. ::. st resp ondents. The 6. i~ er :.1 ce be t ween the 

total numbe r of clrop::._J ec.". c cse s, and the number of :: i l·st cor.1pl aints reflects 

these cross-referenced ses . 

( *) ~ee Table L~V. 

9861 

To complete ~1c i~t ~e , 

of complaints hanc'..le c "u:r :i t~ t 

Agreement . 

- 171-

r oferonce sho.1l c ue "'. 0. <.:.lso to the volume 

Offices unc1er t.hc. ?··osi ·· cnt ' s Rcemplo~rment 

2 . Nature of .riolr.t i on , Labor CoP1p l nints. 

In a stucly of c~H:! c:.C . . inictrFttion ofi C't series o.f :· ec;111ations on the 

comii ti ons of l abo:..· , ~Jo::: 1.:-.y s t he most signi fic<'.:lt l~.atc:. a re those \'lhi ch 

show the p rovisi ons . :o sJ~ ?renuentl~r cited in vi ol .:-'.tio:1s. From the se can 

be nsce rt a ined the el.'.. ~i, re :>.. .inistrr,tive burc.en of (ifferent regulartions. 

The study of ·orovisiOils most frequently violc.';_; ed ha s been made in 

ter:-n s of the indivic:u.:l co c~. es violated, and these resultn have been compiled separ a tely ~ co( e .(*) These of:'e r a fru.iti\ ~1 field for investig ating such proble~s -. s · -~1et:1e r there ,.~ere rel a tively mo:·e hour viol a tions 

in manufacturing co ~-e s, c:.:1c'. :tel at i vely more na:·;e viol<:.t ions L1 service or 

distributing codes. 'P.he t :1er the incidence qf co:.:~J lc.ints in one inclustry 

is b reater than i n e.11other can be a scertained 01:.17 o~r reference to external data, such p.s Census ~~ e;ures for the size :~ t~1e industry.(**) 

(a) Mct:1oC.. o:: ·yr~ra.t ion. 

The ·classific.:-.tion of types ·of l a bo:v viol,:;.t ions listed was furnished to the fiel _ cDe:.1cies responsible fCJr t he G'..!1cl sis as a part of 

the ·ari g: inal report i nc; L:structions. Sym'L:JOls :..~ e~=' l~es e .. lting these t ypes 

nere noted directly o:1 :c:1e rep ort forms •. 

Since :1e L1lo 1~ .. :o.. tion included in case : iles :_-1ic;ht . not a l ways 

discl ose the exact :.1r.ture of the biolation, genc1·c.l l1eacl.ing s _fo r wage and 

hour viol ati ons ,-rere :) .ve:1 for use nhere furthe:!.' (_e t a il 17its not availabl e . 

A . classi fi cc:Gio:l covering v-iolation s of :·_)l'OVi sions deai':l.ng '"Ti th 

equitable ad.ju st 1en·~ :~ ·.:c .. ·e s above 'the ;ninimlc, : 1:--.i:1t ena nce of weekly 

earning, maint en a.Lce of cd::f e:rential and simil.:-.r ~J l~ovisions PJas o.oitted 

from the or i g inal re ~) ort i:'lt:; instructions by er:.: ol~ . ---- ile such a cl assi -

fication was est"' bl ~1e0. lc.ter, it \7as i mpossi "ul e t o :ce-exainine a l l of 

the files which ~lt"' C.. ·o e en o..~1alyzed in order to co:::.- ect t~ i s oversight. 

The viol c_tions so cl['.S -:J i:Zied in these ta.bles i nc 2.1..._ .-_e o: ~r those d.efini tely 

knovm to fal l unCI.er tl1i s i.1eading. Dstima.t es o.:-.soc;_ on spe cial rep orts from 

(*) There is a :J..::.ste i· ::'i le incl U:ded in the :cecol'G.s of the Statistical 

Section of t he Fiel c.- Division, while other co:;) ies have been released. 

to the Labor 21 c.~. I nc:u.stries -Studies Secti o:1.. Co) ies of these analyses 

we r e ·also SUJT}lieC:: to . the Code History Sectirm. 

( **) See Scope of Inc.".1.,_stri es under NRA Co d.es, Po ~; t Corle '1 rsis , l'Tos. 60, 

60A a nd 60B, ;~['.:,:ell 25 , 1S34, Me:.y 4 , 1934 2.n0. Oc tober 6 , 1934 , and 

Cl assificatioi.l of ..:~~.~~w oved Codes i n Ino.us·cr y Gro·lp s , ·\'fork li.•la.t erials 

No . 13 , Division ol ileview, 1mA . 
fiel c1 offices ::? 01.~ :--, t otc::,l rrumber of 504 CA-ses . 0:? t. :1ese 204. were r ep orter;. bv docket nuraiJe r <:.:.1(_ -.:1 .:-- deli t i ona l 300 Bere es r_:~.Jce0_ i n ercent 2:~ s 

of total lal:or 'viol r-,t i ons . Of the 204 sp e ci f ice.ll:r :.·e )O "-' d cases, · 87 1

Ji7 ere adjusted, 100 n o vi ol.:-..tion, ll droppe d , anc. 6 ~~ :1 c. in . ~ 204 C?.ses 

include 105 c a s es o:: viol ;:-.t i on o( t he eqlJ.i t R.ble c..o.just r:1 ent p rov isions 

sh mv-.n. in t h e gene r2.J. s-l,..;.r.:<.l'Y . 

. . 

General 11 t:.clj.'.i:l1iot::tative 11 viol e>.tions ':r:_:.ic:1 t ouched on the field 

of l abor r egula tion, ot:-1e :.' t han v iolations of t h e l abor p oster regula--

tions, a re inclufie d in the tables sh Q11'Jing violation s of trc:de practice 

and administra tive !.J:!.' ovisions. 

Each sepal'c-.t e vi olat ion is shown agai n st the class ification 

under wh ich the pr:--,c t ice uc..s pl a c:ld. The sum of the violation~ is, of 

course, equal to or c; re ~· .t e:.' than the tot a l num.be:c of c a ses docketed. 

(b) i' 'ic.'\ rg il~ o:Z e rror. 

The me tho (L o:Z COLlpila tion used a nd t he v olu!Je of cases which 

were analyzed has pl'even tec1 the check ing of the 'p e of violation data 

against provisions of 2.11 code s f or consistency . 

Some no tes o:1 e1Tors in a s si gn ing vio l, ti ons t o pp_rticular classifications will t JJ.ro,·r ::; ~1 t on the limit a tions o:f ;c :1..e c:ata. The l a r r:: er 

p a.rt of the errors in ·che fi gures on seven ma jol' cocl e s inspected YTere under the heading 11 Fe..ilure to p a y overtime r e.te specif'ieo. by code for p ermitted overtime". J.io provision of this. t ype was incluc:..ec1 in three of the 

code s , and in the o t l1e :., four, the numbe r of viol8.tions s}w n n seemed out 

of p roportion, c1u o ·co t lle fact that the overtin e r o.te no.s provided only 

for emergenc;y r.ep8.i l' -. OJ..'~-.:: . It would .. appe a r t h at 0Ghes e vi ol a ti ons were 

simply viol a tions o:f 0Gl.1e 1c..:cirrru.m hours provisions. 

In t h e Llst,-_-::l ce just c it e d and i n a nuu-oe::.' of other cases, it 

is likely that t he C:'-ll<'.13•s·c has a ssigne d t he vi ol 2..t i on t o a :particular 

classifica ti on beco .... ,_s e i t as su'!"led that f o r m r e..thei' ti.1an b ecause t he p rac:... 

t i ce was speci fi ca :L~r ~· l'O i o i ted by t h e cod e . ::?o r ex2.;··11Jle, 198 inst ru1 ces 

of Sunday work oc cur in the tabul a ti on of a d jus t ed_ ll. est2-urant cases, a nd 

101 under the Re tail ::C,ooC_ [Gel Groce r y · Code, a l t :lo"J-Gh Sunday work is not 

p rohibited In ei t he:t , I t is p rob abl y s n.:.: e t o asm .. u-,le t hat these inst cmces 

1.1ere a ctually viol, ..... ti o;._ s of the six-dav ~{ p r ovisi on, a nd thA.t t he emp loy ee cot1p l a inecl bec.:-..use :1e 'Has conpelled to -.TO:i.'l;: e ve :1.7 day of the Tieek , 

i n cluding Sunday . 1"i11e:..' e v i ol Fi t i ons of provi s i ons cte alinc ':7i th met h od \l!ld 

time of payment a r e .-:~1 , cle sp i te t he a b sence of SlJ e c i f ic regulati on s in 

the code, it may also be C'.ssu med that t h e vi ol 2:t; or no..s :;:o esorting to subterfuge in wag e ~r nt s L1 o.: cle r to ev ade t he m L1i mun rra -_; e. 

The cla ssifi c o:c i ons '.'rhich seem parti cu l o.r l v r.ffe cted by err ors 

a re as follo'.'T S: 

9861 

:C::ceed ing dail:,; limi tati on 

jo.,ilure to av rA.~ e down 

~~ -l1da;y '.7ork 

S; ~· curClay work 

F2.i lur e to pay ove rtime :..' · te Sl)e cified by code 

:e·~~ cl a...YJ.d t i me of p ayr1 ent 
-173-

Tn1 J e II ~1rc>~~c ·~cc · 'c:;.'c ;, 1m7s t he nn.t1 n. ·l ot J.s :"o1· l abo r code 

p rovisions viol n. \" l.. 'l.le · .. bl o i s bn"lc d :m nor·1· 1 c;-.ncr investigated by 

the St a te Offices u ~··eon Octo cr 19, 1933 , .:me:. :.;'·· ~~7 , 1935 , ( a nd 114 

C8ses a ccepted 11ri o_· to t~1:-.t t ime) . It exchv .c::; c ... wE s Gent on reference 

to the Cod e tl~o ·i tic" :."' r:l.o r to J n e 16, 193l·l· , .:"'.n 1:1 ,•r. all other cases 

referred to speci ~J. . .j1.1. :-· t : ent '"-b nc i es. It i ncJ.uc".c s 'Jot 1 f irst compl ai nts 

against re.,ponc:.ellts, > .. : .• 11 succesoivc COI•10l ,·.i:1'cn · ·' ic~1 .ere docketed 

separ::.tely. 

3· Compl a intc . .., " 

l)V I,J O• .c S 0 :..a..t_ ___ _ _ 

Table III s ho· ·s · · lo ·1.un·:Jer of La 0r ca s e :3 ·o· · co::.e:::; 2.nd ~et~10d of ci.is-

:position. Table I· li u·~·c t~ e wen ·~ ,.. e carle" , .~o .'' 1Cions of nhich ·rere 

re orted .10st fre t~u e;l tl . 

The top ic of t·'.c : -.cic' ence of co C::.e re ul c~t ions 0 :1. l ::t.lJo r conditions 

upon the small e S 1C · · :. i s~:.: e: t has been one to 1.i li c£1 <'.t J.:;en tion has been devoted, both by the :1<'.:~: ·o· · Corni t tee <'..nd by a sect i u!1. of the Research and 

Planni ng :Jivisio::1 o:':' l:c'Ji. . 

During t :.1e .:.ctive :.!e:-..·iod of field office <'.r,: co ·; ~:, tion , prA.cticnlly 

no dat 2. ,·rere avail: ."J le on the si ze of est;.•,blish:ent'· ... ;2.inst wh ich com-

:pl a ints ··rere loc.lge0 .• ( *) 

In the :present su:·ve: · si ze of est f."' blishrnent ~1;:- :::; ·oeen measured in terms 

of the number of :;;!. ~ ·ees in the unit est bli c~:ue . ( **) Figures have been 

g r ouped to sho•: first , :".u:.!'J er of emp loy ees in inch vi duc.ll;;.' operated establi shrnent s . (Table ~) , c:t>.. <". se cond the nunber of e:·1:::-'J.o;;•e cs in units of chain 

distributing or servi c e o:.,::;2nizations. (Table VI ). o :::.:.·i ·:::: es ·:rere instructed 

to rep ort the norrk.!.. si e of str:ti'f to R.void. disto:i.'tin..; t{le figures by showing the seasona l lo·:: ~? i:1 . lt,i.gures t end, ho ':' evol~ , ·c o reflect size of 

staff at time of ilY-rc ~~ ", .ti on . 'J 

In abu atin~-:; t: .. o :.'i :~"-l'e , first coErpJ. a.ints h :•.ve :J een seg ~C~ tecl from 

successive com:pl G.ints c-. .:_;c.L1st responde:,'lts, i n o :c·C..e :.., to :9 rovicl e size figures 

in Tihi ch each e st ·<o::'.i s~l: :1 t J1ns been count e d onj: .· o::ce , :.·e::;;"'.rdless of the 

numbe r of compl a i nts ,-_ ;:-- L1st it. 

----------·- ----------- - - - ---- --- -·--- - ------

( *) A surve;r of si:-:c .-.~'.t . i n select e1 off ices, L1c:l·~cl.L1G Ohio , Philacl.elphia, Tenne ssc:e c.::C. -.innesota., 'laS it1 ·"" de L 1 i ~·. :~ :.l of 193 5, but the 

results ne:L~e ::o ·s J~.:-.JL'.lD ed . 

( * *) J.eport sche c'nl >J ::; ·- :i.~o •.-i u.ed n.l so for the col ,_e c '.:;i '!l1 of i r1forr'lat ion on 

dolla r vohu1e o:: J"..l.s::.nes s, but t :1i s f i {:;tE,G ;:c-.s so :yoorly report eel 

that no tobul ~. 'ci ')~l coul d. be r1ade . The sc~1ec':~:J. e .:"'~s o p rovid.ed for 

repo::.~t ing t:1c ·cot: 2. :.mm·oer of e;'lployees o:: C~' . .:"'.L1s or combinations 

a s '7ell as ~J.e :r\...: 'J e:' in unit ostabli shn.ents ··J elon::;ing to chains, 

but this in o:;.,"lc:ci o:1 uas inade-qu.n.t. e for t ""'.'Ju.L ·.Jc i l1 . 
• 
0000 

7000 

6000 

.5000 

4000 

3000 

1000 

Chart I 

N . Q .A. State Office Labor Complaints 

e!l 9 Z3 6 20 :3 17 3 17 .!II 14 .ze 12. 2.6 9 U 7 2.1 

NCN. Dec. VCU\. P'eb. .M <lY Ap.- May Jv.ne J u.ly 

1933 On Ho.11a at Ena of Penoa --- - - 19?\4 

Dock:etGci -- Clo8ed - · - · - · 

I IS Z9 13 t.T 10 14 8 22 ll 19 

..::J .. r-t Oa: . Nov. Dec: Jo.n 

Z 16 2. 16 :50 13 27 II Ul 

P'ob Ma.r Apl" .Ma.y 

1935 

l 

State Office Series 

-175-

!.&JLI II 

NRA ST.A1'lll O!'FICE COMPLAINT ST.A.TISTICS 

VIO~IONS Ol LABOR PROVISIONS 

Total of all Offices - October, 1933, - May, 1935 

roT.AL ADJUS!'ED DROPPID 

!OW ltJCBKR OF C.ASS 71,507ll 3),311 14,731 

TOT.AL ll'l'1Vli!B 0!' VIOi.J.TI ON S 121,157 85,235 23,506 

TOT.AL BOOR VIOLATIONS 57,684 39,769 12,011 

)la.rtmmn hours (if no Dr)re 

definite information is 

available) 17,290 10,213 4,941 

lxceeding dail7 limitation 9,435 6,707 1,740 

l%ceeding weekl7 li~tation 24,551 18,233 3,997 

Jailure to average down or 

exceeding limitation of 

more than one week 201 106 71 

Sundq work 947 670 189 

Sa.turdq work 330 198 73 

ViQlation of si~daT week 3,635 2,608 ?98 

lorkin& durin& hours of the dq 

no~ perm! tted b7 code 218 142 61 

~loT&r working more than code 

maxi nmm where prohibited 391 312 66 

lxceeding permitted number of 

persons working unlimited hours 86 77 6 

Split shifts 600 503 69 

9861 

P.!NDING 

6,465 

12,416 

5,904 

2,136 

988 

2,321 

24 

88 

59 

229 

15 

13 

3 

28 
-176-

UBI;& II (Cont.tt) 

TOT.AL J.DJUSTED lliOPPID PDDIIG 

TOTAL I.AGE VIOLATIONS 58,039 40,754 11,045 6,240 

Mintmam wage violation (if no 

more defini te information is 

available) 20,394 12,608 5,289 2,497 

Equitabl e adjustment, maintenance of weekly wage, etc. sJ 105 87 .11 7 

Minimam wage (definitely known) 26,226 19,629 4,086 2,511 

Failure of piece rates to 

equal minimam. 1,306 1,000 165· · 141 

Deductions not authorized by 

the code 660 483 136 

Failure to pq overtime rate 

specified by code for 

permitted overtime 6,963 5.212 900 851 

Le~er , apprentices or 

junior employees ~n excess 

of code a.llowcce 338 262 37 39" 

Employing handicapped workers 

without certificate 10+ 85 7 12 

Exceeding permitted number 

of handic$PPed workers 25 14 6 5 

Violation of handicapped 

workers' certificate 37 28 5 4 

Violation of provi sions dealing 

with method of payment, t ime 

of p~ent, e tc. 674 467 159 _48 

Jemale discrimination 78 54 19 5 

Reclassification, improper 

classification andmiscellaneous subterfuge 873 634 173 66 

Waiting time not ~aid f or 256 191 52 13 

9861 
-1'1?-

TJBLI II (Cont'i) 

TOT.AL ADJUSTED DROPPED :mm G 

T.U..G PBOVI I )NS 5,434 4,712 450 272 

Child Labor 316 254 4.3 19 

J lure to post abor 

provision 4,470 4,012 259 199 

Employment and payroll ~ecords 

(cee ada !ractice Olassific~ 

tion) sJ 2 - B'o work, permit tin& homework 

where prohibited 204 154 26 

Violation of homework regulations 

re permitted 62 36 18 8 

Discharge or discrimination 

!or f'ilin& compla.int 352 229 104 19 

Miscellaneous 28 25 2 1 

!/ !he offices were officially active from October 19, 1933, to May 27, 1935 • 

.llso included are 14 adJusted and 43 dropped cases accepted prior to 

October 19, 1933. 

RJ !otal case count includes 70 adJusted, 68 dropped and 3 pending cases 

transferred from Trade Practice reports, not listed in Table I. 

sJ See supplementary Table XIII-A for revised figures. 

9/ State Offices generally reported this item as hilure to File Labor 

statistics which is included in Violations of Trade Practice Provisions. 

9861 

Prepared br. 

Statistical Section 

ield Division, 

Jlarch 14. 1936 
-178-

Code Series TABLE XX 

NRA STATE OFFICE COMPLAINT ~TISTICS 

NUMBER OF LABOR CASES, :BY CODE AND METHOD OF DISPOSITIObT 

Total of all Offices, October, 1933 - May, 1935 !I 

Method of Disposition 

Qodes Total Ad..justed Ho Violation DroJ.med fending Total all Codes 118,958 50,311 47,451 14,731 6,465 

Ab asive Grain Industry 3 3 

Academic Costume Industry 5 1 2 2 

Advertising Display Installa.tion Trade 57 20 28 7 2 

Advertising Distributing Tre 158 80 65 13 

Advertising specialty Mfg. Indo 57 21 28 5 3 

Air Transport Industry 17 7 7 2 1 

Air Valve Industry 1 1 

Alcoholic :Beverage Importing Tr. 15 6 5 1 3 

Alcoholic Beverage Wholesale 

Industry 389 218 91 26 54 

All-Metal Insect Screen Ind. 20 14 1 4 1 

Alloy Casting Indus try 1 1 

Aluminum Industry 5 1 1 1 2 

.Axnerica.n GlassWare Ind. 54 14 29 8 3 

Ameri can Match Industry 10 4 6 

Ameri can Petroleum Equipment 

Industry & Tl'#\o.e 174 91 74 6 3 

Animal Glue Industry 3 1 2 

A.ntl-Friction :Bearing Ind. 11 3 8 

Anti-Hog Cholera. Sel"lli!l Ind. 10 5 3 2 

.Art Needlework Industry 11 2 7 2 

Artificial Flower & Feather Ind. 404 48 238' 100 18 

Artificial Limb Mfg. Ind. 4 2 1 ' 1 

Asbestos Industry 23 6 12 2 3 

Aspba1t and Mastic Tile Ind. 5 3 .1 1 

Asphalt Shingle & Roofing Ind. 16 7 5 4 

Assembled Watch Industry 4 1 3 

Athletic Goods Mfg. Ind. 40 19 17 3 1 

Auction and Loose Leaf Tobacco 

Warehousing Trade 27 12 5 7 3 

Automati c Sprinkler Ind. 12 2 10 

Auto Rebuilding and RefiniShing 

Trade 59 22 13 5 19 , tomobil e Mfg. Industry 151 48 85 14 4 

ttomotive Chemical Specialties Mfg. Industry 1 1 

Automotive Parts & Equipment 

Mfg. Industry 441 198 201 15 

9861 
-17 

Cod r1 8 TABLE 

STATE OFFICE CO INT TISTICS 

NUMBER 0 OR CA S, :SY 0 THO OF DISPOSITI ON 

Total of all Of f c , Oc ober, 1933 - 'ay, 1935 (Continued) 

ng Indu try 

l Cl y Production Ind. 

d In trum n t g. I nd. 

S eur1 t7 Vaul. t Mfg. Ind. 

.&A.'Dra Indu try 

J arber op Trade 

Batting Padding Ind. 

:Beauty :Barber Shop Mechanical 

Equipmant Mfg. Ind. 

Bedding Mfg. Ind. 

B et SUgar Ind. 

:BeT rage Dispensing Equipment 

Indus ry 

Bias Tape Industry 

:Bic;rcle ufacturing Industry 

Bit nowa Coal Industry 

B1 tuminous Boad Material 

D1 tributing Indn.stry 

BleaChed Shellac Mfg. I nd. 

Blouse & Skirt Mfg. Ind. . 

:Slue Print & Photo Print Ind. 

Boat Building & :Boat Repairing 

Indust17 

Bobbin & Spool Mfg. Ind. 

Boiler Kfg. Ind. 

loot Shoe Mfg. Ind. 

Bottled Soft Drink Indust17 

Bot tlill . chin err & I quipg. Indu.stey 

Bi lli d quipment 

In try & Trade 

Bowling & Billiard Op e ting Tr. 

Brattice Cloth Mfg. Ind. 

Br ing Industry 

Broom Manufacturing I n d. 

:Brush Kanufacturing Ind. 

Buff I Polishing Wheel Ind. 

Buffing & Polishing Compositi on 

In try 

9861 

3340 

4 

6 

5 

542 

1620 

16 

29 

222 

40 

33 

2 

4 

91 

2 

1 

362 

7 

36 

7 

38 

1584 

254 

5 

4 

119 

3 

288 

57 

29 

3 

3 

1466 

1 

2 

821 

11 

12 

74 

32 

16 

1 

30 

1 

150 

3 

12 

15 

583 

117 

4 

49 

1 9 

18 

12 

1 

1208 

2 

2 

3 

146 

563 

4 

13 

110 

7 

12 

1 

41 

2 

130 

3 

18 

1 

15 

770 

100 

1 

39 

3 

76 

26 

12 

2 

2 

ed Pendin 

402 

1 

1 

1 

270 

216 

3 

17 

1 

2 

20 

46 

1 

2 

6 

103 

20 

2 

23 

30 

5 

3 

264 

1 

14 

20 

1 

1 

21 

3 

36 

4 

2 

2 

128 

17 

1 

1 

8 

33 

8 

2 

1 
-laoCode Series TABLE XX 

NRA STATE OFF! CE COMPLAINT STATISTICS 

NUMBER OF LA.BOR CASES, BY CODE AND METHOD OF DISPOSITION 

Total of all Offices, October, 1933 - May, 1935 (Continued) 

Method of Disposition 

Qodes Total Ad.iusted No Violation Dropped Pending 

Builders Snpplies Trade 167 56 82 24 5 

Bulk Drinking Straw In'Cblstry 1 1 

Burlesque Theatrical Industry 11 4 4 3 

Business Furniture,Storage Equipment and Filing SUpply Ind. 66 15 36 11 4 

Fire Resistive safe Industry 8 6 2 

Call Manufacturing Industry 48 8 36 1 3 

Oa.uclle Manufacturing Ind. 7 2 3 2 

Candlewick Bedspread Indu.stry 5 1 2 1 1 

Candy Manufacturing Industry 310 114 14.2 22 32 

Canned Salmon Industry 63 21 42 

canning Industry 483 143 217 53 70 

Canning & Packing Machinery Ind. 8 1 7 

canvas Goods Industry 107 46 53 3 5 

Cap & Closure Industry 10 4 4 1 1 

Cap & Cloth Hat Indu.stry Ind. 60 26 23 6 5 

Qarbon BlaCk Mfg. Ind. 9 3 6 

Card Clothing Industry 1 1 

CS.rpet & Rug Mfg. Industry 39 10 24 3 2 

Cast Iron Boiler & Radiator Ind. 10 5 5 

Cast Iron Pressure Pipe Ind. 14 1 8 4 1 

Cast Iron Soil Pipe Ind. 15 7 6 2 

Celluloid But ton, Buckle and 

Novelty Mfg. Industry 22 5 6 7 4 

Cement Industry 40 11 26 2 1 

Chemical Mfg. Industry 109 25 67 11 6 

Chewing Gum Industry 2 1 1 

Chilled car Wheel Industry 11 6 4 1 

China Clay Pro clueing Ind. 3 2 1 

Chinaware & Porcelain Mfg. Ind. 34 11 - 18 2 3 

Cigar Conta.intol'' !ndustrJ 25 5 12 4 4 

Cigarette, Snuff, Chewing, & 3 1 Smoking Tobacco Mfg. Ind. 5 1 

Cigar Mfg. Ind. 76 22 34 11 9 

Cinders, .Ashes & Scavenger Tr. 147 38 60 47 2 

Clay & Shale Roofing Tile Ind. 5 1 2 2 

Clay Drain Tile Mfg. Ind. 5 3 1 1 

Clay Machin~ry Ind. 1 1 

Cleaning & Dyeing Trade 2376 861 905 506 104 

Clock Mfg. Ind. 2 2 

Cloth Reel Industry 2 1 1 

Coal Dock Industry 10 2 3 2 3 

Coat & Suit Industry 239 58 117 59 5 

9861 
-181-

Code Series TABLE XX 

BRA. STATE OFFICE COMPLA INT grATISTIC 

NUMBER OF LABOR CASES, :BY CODE AND METHOD 0 mSPOSITIO 

Total of all Offices, October, 1933 - Way, 1935 (Continued) 

Codes Total 

Coated .tbrasi ves Industry 1 1 

Cocoa & Chocolate Mfg. Ind. 28 12 11 1 

Coffee Industry 59 31 23 5 

Coin Operated Machine Kfg. Ind. 29 10 5 11 3 

Collapsible Tube Industry 3 3 

Commercial Aviation Industry 3 3 

CoDillercial :Breeder & Hatchery Ind. 98 49 33 9 7 

CoiDIIlercial. J'ixture Industry 130 25 70 28 7 

Commercial Refrigerator Ind. 61 20 29 9 3 

Conmercia.l Vehicle :Body Ind. 42 23 12 3 4 

Compressed .Ur Industry 7 2 2 3 

Concrete Yaso~ Industry 36 15 13 2 6 

Concrete Pipe Mfg. Ind. 23 12 9 2 

Construction Industry 3603 1521 1471 323 288 

:Building Granite Industry 4 1 3 

Cement Gun Contractors 12 3 6 1 2 

Construction News Service Ind. 27 6 16 1 4 

Cork Insulation Contracting Ind. 1 1 

Electrical Contracting Ind. 437 155 208 49 25 

Elevator Mfg. Industry 16 4 11 1 

General Contractors Ind. 85 26 47 3 9 

Heating, Piping & Air Conditioning Contracting Ind. 118 40 58 9 11 

Hi€)lw~ Contractors Ind. 13 7 3 3 

Insulation Contractors Ind. 17 9 6 1 1 

Ke.lamien Industry 8 2 1 1 4 

rble Contracting Ind. 1 1 

ason Contracting Ind. 74 34 29 3 8 

Painting, Paperhan~ng and 

Decorating Contracting Ind. 601 243 243 58 57 

Platering & Lathing Contracting 

Industry 383 143 156 40 44 

Plumbing Contracting Ind. 1211 449 144 98 

Resilient Flooring Contracting 

Industry 11 4 6 1 

Roofing & Sheet Metal Contracting 

Industry 303 127 147 9 20 

Terrazo & Mosaic Contracting 

Industry 4 2 2 

Tile Contractors Ind. 36 13 20 3 

Wood Floor Contracting Ind. 12 3 8 1 

Construction MaChinery Distribut ng Trade 15 5 6 3 1 

~861 
-18.2-

Code Series TABLE XX 

NIU\ STATE OFFICE COWPLA.INT ST.A.TI STICS 

NUMBER OF LA:BOR CASES, :BY CODE AND METHOD OF DISPOSITION 

Total of all Offices, October, 1933 - May, 1935 (Continued) 

Method of Dispot1t1on 

Cot\fs Total . .A.dJusted No Yiolation Dr owed Pending 

Ooold.ng & Heating Appliance Mfg. 

Industry 46 11 27 5 3 

Copper Indu.stry 4 2 1 1 

Copper & :Brass Mill Products Ind. 34 6 16 10 2 

Cordage & Twine Industry 70 17 39 14 

Cork Industry 8 3 4 1 

Corn Cob Pipe In~. 1 1 

Corrugated & Solid Fiber Shipping 

Container Mfg. Ind. 36 12 17 4 3 

Corset & :Brassier Industry 95 33 36 20 6 

Cotton Cloth Glove Mfg. Industry 50 21 21 3 5 

Cottom Garment Industry 1160 546 466 127 21 

Cot ton Ginning Machinery Ind. 1 1 

Cotton Pickery Industry 4 3 1 

Cotton Textile Industry 184 36 98 48 2 

Counter Type Ice Cream Freezer 

Mfg. Industry 1 1 

Countr.v Grain Elevator Ina. 69 36 6 5 

Crown ·Mfg. Industry 1 1 

Crushed Stone, Sand & Gravel and 

Slag Industry 474 213 190 39 32 

Curled Hair Mfg. Industry 2 1 1 

Cylindrical Liquid Tight Paper 

Container Industry 1 1 

Daily Newspaper Publishing 

:Business 156 42 93 18 3 

Dental Goods & Equipment Ind. 

and Trade 18 10 7 1 

~ental Laboratory Industry 153 75 54 17 7 

Die Casting Mfg. Industry 12 2 9 1 

Distilled Spirits Il'lti.ustry 51 22 18 4 7 

Distilled Spirits Rectifying Ind. 53 30 15 1 7 

Dog Food Industry 11 8 1 2 

Domestic Freight Forwarding Ind. 76 31 31 10 4 

Dowel Pin Manufacturing Ind. 1 1 

Drapery & Upholstery Tr~ing 

7 11 13 3 Industry 34 

Dress Mfg. Industry 409 144 176 87 2 

Dropped Forging Industry 6 1 4 1 

Dry and Polishing Mop Mfg. Ind. 1 1 

Dry Color Mfg. Ind. 6 3 2 1 

Dry Goods Cotton Batting Ind. 1 1 

Earthenware 'M.f g. Ind. 22 9 9 2 2 
Oode Seriea 

-18 

T.lBLE XX 

IBA ~TE OFFICE COMPLliBT S~TISTICS 

BOKBER or LA.BOR C.A.SES, :BY CODE Am> METHOD OF DISPOSITIC t 

Total of all Officea, October, 1933 - May,l935 (Continued) 

Method of D1apos1t1on 

aodt• Total AdjuSted lo Violation DrOpped Pe~ 

llectric & Neon Sign Ind. 108 

lectrie Hoiat & Monorail 

Kf!• Ind. 1 

lectric Storage & Wet Primary 

:Battery Kfg. Ind. 77 

:Electric JLfg. Ind. 745 

lectrotyptng & Stereotyping 

Industry 38 

lnd Grain Strip Wood :Block Ind. 6 

Envelope Ind. 32 

cel!ior & Excel ior Products 

Industry 24 

Expanding & Special t Paper 

Products Industry 3 

J'abricated Ketal Products Ind. HI 

Jan & :Blower Industry 1 

J'&rJD lqu.ipm nt Industry 73 

J'ee4 Mfg. Indust-y 139 

J'eldspar Industry 2 

J' •tillzer Indu.atry 72 

J'ibre & Ketal Work Clothing 

:Button Industry 6 

Jibre Can & Tube Industry 9 

J'ibre lallboard Ind:u.atry 1 

r• Extinguishing .A.pp11Ance 

Mfg. Industry 8 

Jiaheriel Industry 266 

Atlantic Kackrel Fishing Ind. 1 

:Blue Crab In<hlstry 4 

California SS.rdine Processing Ind. 2 

J'reah Oyster Industry 30 

Jew England J1 shing Ind. 1 

J'iahing Tackle Industry 28 

Jlag Manufacturing Ind. 3 

Jl t Glaaa Mfg. Ind. 5 

na.voring Products Ind. 8 

Jloor Machinery Ind. 3 

Jloo & Wall Clq Tile Ind. 25 

rluted Ou.p, Pa.n Liner & Lace 

Pap r Industry 6 

o ding Paper :Box I ndu stry 92 

9861 

31 

1 

39 

213 

12 

3 

12 

10 

2 

410 

36 

60 

12 

1 

3 

1 

77 

1 

1 

3 

13 

3 

5 

3 

12 

l 

29 

60 

31 

385 

17 

3 

13 

6 

391 

1 

33 

52 

1 

45 

4 

5 

1 

6 

140 

1 

2 

16 

1 

e 

1 

1 

11 

5 

40 

2 

5 

111 

e 

7 

4 

1 

92 

1 

11 

1 

12 

1 

1 

40 

11 

3 

1 

8 

15 

2 

36 

1 

4 

68 

3 

16 

2 

3 

1 

9 

1 

1 

4 

2 

15 
Cod Series 

-184-

TA.BLE XI 

NRA STATE OFFICE COMPLAINT SIATISTICS 

NUMLER OF LA.:BOR CA.SES, :BY CODE At'D METHOD OF DISPOSITION 

Total of all Offices, October, 1933 • May, 1935 (Continued) 

Method of Disposition 

odes Total ·usted No Violation Dropped Pending 

Food Dish and Pulp & Paper 

late Indnstry 7 

Foundry Supply Industry 4 

Fresh Water.Pearl :Button Ind. 59 

Fallers Earth Producing and 

Marketing Industry 8 

Funeral Service Industry 205 

Funeral Su.pply Industry 99 

Fur Dealj.ng Trade 25 

Fur Dressing & Far Dyeing Ind. 76 

Fur Manufacturing Ind® 333 

Fur Trapping Contractors Ind. 9 

Furniture & Floor Wax & Polish 

Industry 28 

Fu.rni ture Mfg. Ind. 904 

Terminal Grain Elevators 42 

Gartere Suspender & BuCkle 

Mfg. Industry 48 

Gas Appliances & .A.ppara tus Ind. 35 

Gas Cock Indt.1.stry 10 

Gasoline Pump Mfg. Ind. 9 

Gear Hfg. Industry 9 

G1as~ Container Industry 63 

Glazed & Fancy Paper Industry 14 

Grain ExChanges & Members Thereof 12 

Graphic .A.rts Industry 1440 

Intalglo Printing Process Group 17 . 

Lithographic Printing process Gr. 18 

Relief Printing Process Group 1199 

Trade Mounting & Finishing Ind. 2 

G ay Iron Foundry Industry 178 

Grinding Wheel Industry 6 

Gummed Label Embossed Seal In~ 9 

~1!Dilling Industry 1 

Gypwm Industry 5 

Hair & Jute Felt Industry 7 

Hair Cloth Mfg. Industry 9 

Handlcerchief Industry 57 

Rar eod Distillation Ind. 12 

Ha anu..facturing Ind. 121 

H ·tters Cutting Ind. 5 

Heat Exchange Industry 9 

Hide & L ather orking Machinery 

Indu.stry 3 

9861 

3 

2 

7 

2 

80 

42 

8 

15 

78 

4 

12 

358 

4 

13 

15 

1 

6 

4 

26 

5 

3 

459 

7 

11 

536 

76 

3 

4 

2 

3 

21 

1 

40 

1 

2 

3 

2 

18 

5 

96 

40 

10 

39 

155 

3 

9 

373 

23 

24 

13 

7 

2 

4 

34 

9 

8 

631 

5 

6 

426 

2 

82 

3 

4 

1 

4 

7 

25 

11 

65 

3 

6 

3 

1 

31 

15 

8 

6 

16 

87 

6 

96 

9 

9 

5 

2 

231 

3 

166 

12 

1 

1 

9 

11 

1 

1 

:-. 

1 

14 

9 

1 

6 

13 

2 

1 

77 

6 

2 

2 

1 

1 

1 

1 

119 

1 

71 

8 

1 

2 

1 

2 

5 
-185-

Co TA.BLE XX 

llBA S'llTE OFFICE COMPLAINT STATISTICS 

NmmER OJ' LA.BOR ClSES, BY CODE AND METHOD OF DISPOSITION 

To~l of all Offices. October. 1933 - Yay, 1935 (Continued) 

Oo4fo 

Horae Hair Dressing Industry 

Horae lhoe and .Allied Producing 

Mfg. Ind. 

Hoaier,r Indnstr7 

Hotel Indust!7 

Household Goods Storage and 

Moving Trade 

Household Ice Refrigerator Ind. 

Ice Industey 

Ice Cream Cone Indus tey 

Imported Date Packing Ind. 

Imported Green Olive Industey 

Importing Trade 

Industrial JUrDace Mfg. Ind. 

Industrial Oil JUrner Equipment 

llfg. Ind. 

Industrial Safet7 Equipment 

Ind: tey &: Trade 

Industrial SUpplies & Uachineey 

Distributing Trade 

Jon-lerroua Ingot Metal Ind. 

Indnstr7 of Collective Mfg. for 

Door-to-Door Distribution 

Infant's & Children's Wear Ind. 

Inls:t1d Water carrier Trade 

(B.!. Canal S7at ) 

Insecticide & Dtalnfeetant Mfg. 

Industry 

Innlation :Board Industrr 

Invea~ent Bankers 

Iron & Steel Industr.y 

J:ni tted Outerwear Ind. 

Lace Mfg. Ind. 

Ladder Mfg. Ind. 

La •• Handbag Ind. 

La:undry Trade 

LaundrT & Dey Cleaning 

)lacbjneey Mfg. Inclnstey 

Lead Induatey 

L ather Industey 

Leather & Woolen K nit Glove 

Industry 

9861 

Total AdJuated 

2 

1 

355 

4321 

194 

28 

1033 

66 

11 

1 

25 

9 

1 

2 

38 

7 

18 

126 

3 

12 

1 

25 

213 

232 

40 

11 

166 

1041 

18 

22 

289 

2 

1 

119 

1534 

82 

11 

423 

10 

4 

10 

5 

1 

.14 

3 

6 

39 

6 

9 

48 

64 

16 

5 

68 

253 

6 

5 

107 

Method of Dispoai tion 

lo Violation Dr~~ed 

176 

17?1 

74 

12 

442 

42 

5 

1 

5 

3 

18 

3 

10 

54 

1 

4 

1 

11 

137 

124 

18 

6 

63 

387 

12 

8 

150 

42 

904 

19 

3 

123 

3 

1 

7 

1 

1 

6 

1 

1 

21 

2 

1 

5 

23 

31 

4 

23 

347 

7 

9 

75 18 37 16 

Pending 

18 

112 

19 

2 

45 

11 

1 

3 

1 

1 

12 

1 

5 

13 

2 

12 

54 

2 

23 

4 
-186-

Co& Series TABLE XX 

BBA. STATE OFFICE CCI4PI.AlliT STl TI STI OS 

DUMBER 01 LA.BOR CASES, :BY CODE .liD METHOD OF DISPOSITIOli 

Total of all Oftices, October, 1933 - May, 1935 (Continued) 

odes 

L ther Cloth & Lacquered Fabrics 

Indust17 

Legittmate Full Length Dramatic 

Theatrical Industry 

Lightning EDd Mfg. Industry 

Light ewing Industry except 

Garmente Industr,y 

Lime Industry 

Limestone Industry 

Linoleum & Felt ~ase Mfg. Ind. 

Linseed Oil Mfg. Ind. 

Liquefied Ge.s Industry 

Live Poultry Industry of Metropolitan New York Area 

Loose Leaf & :Blank :Book Ind, 

Luggage & Fancy Leather Goods 

Industry 

Lumber & Timber Products Ind. 

Lye Industry 

J4aca.ro i Industry 

MaChine Applied Staple & 

Stapling Machine Industry 

Machine Knife & Allied steel 

Produ.cts Industry 

Machine Tool & Eqnipment Distributors Industry Trade 

Machine Tool & Forging Machinery 

Industry 

Machined Waste Mfg. Industry 

Machinery & Allied Products Ind. 

Malleable Iron Indu.stry 

Malt Industry 

Malt Pro duct a 

anganese Industry 

Mfg .. & Wholesale Surgical Ind. 

arble Quarrying & Finishing Ind. 

arine Auxiliary Machinery Ind. 

Marking Devic a Industry 

ayonai se Indutry 

9 6 

Tota.l 

10 

52 

2 

44 

34 

27 

8 

2 

7 

1 

11 

255 

2809 

2 

115 

6 

6 

12 

26 

24 

150 

38 

1 

7 

1 

14 

8 

8 

36 

31 

Method of Disposition 

usted o iol&tion Dro ed 

4 

11 

11 

7 

6 

3 

1 

3 

1 

115 

762 

1 

41 

2 

2 

7 

10 

3 

62 

5 

1 

2 

6 

7 

1 

12 

12 

3 

19 

1 

29 

21 

14 

4 

1 

2 

8 

86 

1445 

1 

54 

1 

4 

3 

12 

21 

72 

30 

4 

1 

5 

1 

4 

19 

12 

2 

19 

2 

4 

2 

33 

493 

9 

2 

3 

8 

2 

2 

4 

5 

1 

3 

1 

2 

2 

5 

1 

1 

2 

21 

109 

11 

3 

1 

8 

l 

1 

1 

3 

1 

2 
Cod r1 

-187-

T.A.BLJ: XX 

STATE OFFI CE COlAPLA.I1lT STATISTICS 

ER 0 LA:BOR CA.SES, BY CODE .A.ED METHOD OF DISPOSITION 

Total o all Offices, Oct ober, 1933 - May, 1935 (Continued) 

K chanieal Packing Ind. 

diilm Lo Priced J lry Mfg. 

K ' Clot ng Industry 

' I ear Industry 

rcha.t-di e ar ous1ng Tr. 

erchant Co.stom Tailoring Ind. 

t Etching Indu try 

t 1 Hat D1 & Wood Rat :Block 

Ind t 

t Ho spi aJ. 1 tur g. 

.. .W.I"'I.AGtry 

th Indu. try 

ank I nfu':. try 

r a ing ndu try 

Window Industry 

Indutry 

Ki 1 t ring Materials Ind. 

1111nery Industry 

illinery & Dre !'rimming !raid 

d Textile Industry 

Kop Stick In try 

ion Pictur Industry 

otion Pietur Labo tory Ind. 

otor Bu Indu try 

otor Fir .A.ppa.ra.tu Mfg. Ind. 

otor Vehicl Maint~nance Tr. 

otor V hicle Retailing Trade 

otor Vehicl storage & Parking 

!ra.de 

otorcyc-1 Mfg. Indu try 

Music Publishing Industry 

Mo. ical erch.andi se l4f g. Ind. 

Mu.tue.l Saving :Banks 

Warrow Fa rica Industry 

atural Oreanic Products Ind. 

I rint Indu try 

Nickel & NiCkel Alloy IniD~stry 

Non-Ferrous & Steel Convector Mfg. 

Industry 

Non .. J'errous Foundry Industry 

Jlottingbam Lace Curtain Ind. 

Jovelty Curtains, Draperies and 

! dspread Industry 

9861 

2 

247 

351 

156 

112 

320 

9 

4 

1 

3 

42 

1 

8 

10 

4: 

329 

41 

4 

1944 

22 

210 

9 

194 

6060 

3327 

4 

2 

15 

2 

48 

2 

a 

2 

4 

53 

4 

99 

91 

121 

45 

38 

121 

4 

1 

1 

13 

4 

5 

4 

89 

10 

2 

725 

14 

62 

3 

102 

3152 

1239 

2 

7 

20 

2 

1 

2 

17 

3 

31 

2 

107 

167 

72 

53 

151 

4 

3 

1 

24 

4 

3 

166 

13 

2 

888 

4 

102 

6 

52 

2163 

1201 

2 

6 

1 

27 

1 

4 

2 

25 

1 

40 

34 

56 

28 

16 

15 

2 

~ 

15 

23.2 

3 

33 

6 

417 

715 

2 

1 

1 

1 

6 

17 

15 

7 

11 

5 

33 

1 

2 

5 

1 

24 

3 

99 

1 

13 

34 

328 

172 

2 

1 

1 

1 

5 

11 
Code Series 

-188-

T.A.BLE XX 

lmA STATE OFFICE COUPLAINT STATIS'l'ICS 

WMBER OF LUOR ClSES, BY CODE AND METHOD OF DISPOSITION 

Total of all Offices, October, 1933 -May, 1935 (Continued) 

Method of Disposition 

Q.odea Total Adjusted No Violation Dropped Pending 

Office Equipment Mfg. Ind. 65 

Oil Burner Industry 89 

Open Paper Drinking Ou.p Industry 3 

Optical Ufg- Industey 76 

Optical Retail Trade 33 

Optical Wholesale Ind. & Trade 30 

Ornamental Moulding, Carving and 

Turning Industry 10 

Outdoor .Advertising Trade 45 

O~eetylene Industry 15 

Pacific Coast Dried Fruit· I nd. 9 

PaCka~d & Processed Cheese Ind. 3 

Packa~ !leOicine Industry 32 

Packaging Machinery Ind. & Trade 5 

Paint, Varnish & Lacquer Mfg. Ind. 93 

Paper & Pulp Industry 184 

Paper :Bag Mfg. Ind. 43 

Paper Disc Milk :Bottle C&p Ind. 10 

Paper Distributing Trade 91 

Paper Makers Felt Industry 1 

Paper Making Machine Builders 6 

Paper StationAry & '!a'blet Mfg. Ind. 22 

Paperboard Industry 18 

pasted Shoe Stoek Ind. 9 

Peanut Butter Industry 16 

Pecan Shelling Industry 10 

Perfume, Cosmetics & Other 

Toil t Preparations Mfg. Ind. 96 

Petroleum Indus try 128 

Pharmac utical & :Biological 

f • Industry 7 

Photo-J:ngraving Ind. 58 

Photographic Mount Industry 6 

Photographic Mfg. Ind. 13 

Photographic and Photo Finishing 244 

Pia.no Manufacturing Industry 15 

Pickl Packinc Indust17 51 

Pict Moulding & Picture 

!'ram Indu. try 54 

Pipe Nipple Mfg. Indu.stey 8 

Pipe Organ Industr,y 8 

Pleating. StitChing & :Bonnaz & 

H ibroidery Industry 212 

C cib1e Industry 3 

9861 

23 

37 

18 

11 

12 

1 

16 

6 

3 

12 

3 

37 

38 

7 

1 

42 

1 

8 

6 

4 

9 

3 

26 

40 

2 

32 

3 

93 

7 

20 

19 

3 

4 

40 

1 

39 

35 

3 

47 

16 

16 

6 

27 

7 

6 

1 

16 

2 

42 

104 

27 

5 

36 

3 

8 

8 

3 

6 

4 

37 

33 

3 

19 

5 

9 

97 

5 

13 

19 

5 

53 

2 

3 

10 

7 

5 

1 

2 

3 

8 

24 

4 

2 

7 

3 

3 

1 

3 

15 

53 

1 

3 

1 

1 

35 

·3 

6 

10 

2 

104 

7 

4 

1 

1 

1 

2 

2 

2 

1 

6 

18 

5 

2 

6 

1 

2 

3 

1 

1 

1 

18 

2 

1 

4 

19 

12 

6 

2 

15 
-189-

8 TABLE XX 

BRA ~TE OFFICE COMPLAINT STATISTICS 

ER OF LABOR C1SES, BY CODE .4ND METHOD OF DISPOSITION 

Total of all Offices, October, 1933 -May, 1935 (Ccatinued) 

Method of Disposition 

Total d 'usted llo iolation Dro ed Pendin 

Plumbing ixturea Ind. 

c lain Breakfast Furni ture 

J.sa bling Industry 

o teey pplies & :Back.Wall & 

Radiant Indus try 

Powder Puff Ind. 

Precioua Jewel17 Producing Ind. 

Prefo:rmed Plastic Products Ind. 

Preae e, Maraschino Cherry and 

G ace lru.1 t Industry 

Pretzel Indu try 

rint Ro 1 & Pr~nt Block Mfg. 

Indust y 

Printers Rollers Indust ry 

Printing Equipment Indust ry 

Printing Ink Industry 

Privat Home Stud¥ School s 

Public Seating Industry 

Pump Manufacturing Industr y 

Punchboard Kfg. Industry 

PyroteChnic Mfg. Industry 

~ ks11ver Industry 

Badio B:ro dcasting I nd. 

Ba1 B¥ Brass car & Locomotive 

Journa Bearings I ndustry 

b.i1way Car :Building Ind. 

B.ailwq Safety .A.ppliance Ind. 

Raw Peanut Milling Ind. 

Balon & Silk Dyeing& Printing 

Ind try 

B1.\yo & Synthetic Yarn Producing 

Induatry 

R ady-made Fu.rni ture Slip 

Cover Industry 

Ready ixed Concrete Industry 

R Estate Brokers 

Reclaimed Rubber Mfg. 

lie ractoriea Industry 

efrigerated Warehouse Ind. 

94 

29 

7 

31 

70 

2 

25 

33 

7 

4 

13 

6 

2 

11 

18 

3 

18 

2 

95 

1 

20 

3 

12 

67 

34 

25 

22 

102 

4 

31 

50 

Re nforcing Materials Fabricating 

Industry 14 

14,664 

86 

Restaurant Industry 

t '1 Equipment Industry 

28 

4 

12 

22 

1 

13 

9 

1 

1 

3 

1 

1 

8 

8 

•9 

1 ' 46 

1 

5 

1 

1 

26 

8 

10 

6 

41 

1 

6 

25 

6 

6822 

43 

42 

19 

4 

10 

38 

1 

8 

18 

5 

2 

7 

3 

1 

8 

2 

4 

1 

38 

13 

2 

9 

23 

23 

10 

11 

39 

2 

20 

12 

7 

5073 

29 

14 

3 

3 

8 

8 

2 

1 

1 

2 

2 

1 

4 

5 

2 

2 

13 

3 

2 

4 

12 

2 

8 

1 

2198 

9 

10 

3 

1 

2 

2 

5 

1 

1 

3 

1 

1 

1 

6 

5 

3 

1 

10 

1 

3 

5 

571 

5 
Code Serie TABLE XX 

NBl ~TE OFFICE COMPLAINT STATISTICS 

NUMBER OJ' LA:BOR CASES, :SY CODE J.ND lETHOD 01 DISPOSITIOI 

Total of all Offices, October, 1933 - ~. 1935 (Continued) 

Method of Di spc;:ai tion 

0 des Total .A.djusted No Vi olation· .. ·Dr ed Pendin 

t 1 Food & Grocery Trade 

R 11 Jewelry Trade 

.Retail Lumber Trade 

Retail Meat Trade 

Retail Monument Industry 

Retail Bubber Tire & :Battery Tr. 

Retail Solid Jnel Industry 

Retail Tobacco Trade 

Retail Trade 

Retail Custom Millinery Trade 

B tail Dru& Trade 

lii v & Harbor Improvement Ind. 

Road chinery Mfg. Industry 

Ro e & llied Products Ind. 

!lock & Slag Wool Mfg. Industry 

Ro .. Crusher Mfg. Industry 

Ro ing Steel Door Industry 

Roofi g Granule Mfg. Industry 

Rubber Manufacturing Industry 

Rubb r Tire fg. Industry 

Rug Chemical Processing Ind. 

13,620 

227 

653 

298 

89 

564 

1273 

104 

9483 

11 

734 

19 

22 

46 

7 

1 

1 

9 

S ddlery Ma.Dufacturing Industry 

Safety Razor & safety Razor :Slade 

171 

50 

3 

56 

6 

25 

44 

3 

2 

Mfg. Inclustry 

S 1 t Producing In<lllstry 

SSm.ple Card Industey 

Sand Lim :Brick Industry 

Sand tone Incbl.stry 

Sanitary & aterproof Specialti a Industey 

sanitary Napkin & Cleansing 

Tissue Mfg. Industry 

Savings Building & Loan ss 9ns. 

~ & Steel Products Mfg. Ind. 

ch ffli • He.ud Machine Embroidery 

In try 

ei tific ~'paratus Industry 

p I n, Non-Ferrous Scrap 

et Inclu.s ry 

Aluminum Indu try 

Steel Product arehouse 

9861 

1 

11 

3 

52 

45 

911 

2 

2 

. ?483 

99 

22o 

107 

~7 

292 

495 

61 

4471 

4 

401 

10 

12 

16 

3 

1 

2 

65 

15 

2 

30 

3 

4 

13 

1 

1 

1 

2 

17 

13 

380 

1 

4432 

106 

343 

109 

38 

197 

590 

29 

4019 

5 

278 

7 

7 

22 

3 

. 1 

4 

81 

30 

1 

18 

1 

20 

11 

] 

7 

2 

21 

23 

350 

1 

1 

1136 

17 

52 

18 

10 

35 

97 

5 

655 

34 

1 

6 

1 

3 

16 

5 

6 

1 

1 

13 

1 

1 

1 

12 

7 

106 

569 

5 

38 

64 

4 

40 

91 

9 

338 

2 

21 

2 

2 

2 

9 

2 

1 

7 

1 

1 

2 

2 

75 

1 

. . 
-191-

Code Series TABLE XX 

NRl STATE OFFICE COMPLAINT STATISTICS 

Ntn.t:BER OF UBOR CASES, BY CODE AND METHOD OF DISPOSITIOX 

Total of all Offices, October, 1933 - May, 1935 (Continued) 

Me thod of Disposit i on 

odes No 1olat1on Dro ed Pen din 

Seed '!'rade 41 22 11 2 6 

Set..Up Paper :Box Mfg. Ind. 263 101 103 31 28 

Sewing 14a.ch1ne Industry 30 9 15 1 5 

Shipbuilding & Shiprepairing Ind. 115 26 ?5 11 3 

Shoe A Leather FiniSh and PoliSh 

Industr;y 40 14 22 2 2 

Shoe ' Last & Shoe form Industry 26 8 17 1 

Shoe )lachineey Industry 39 16 21 2 

Shoe P~t tern W' g. Industry 15 6 9 

Shoe Rebuilding Trade 998 356 386 225 31 

Shoulder Pad Mfg. Ind. 11 2 ? 2 

Shovel. Dragline & Crane Ind. 12 6 2 l _ 3 

Show~r Door Industry 1 1 

Silk Textile Industry 300 90 164 37 9 

Silverware Mfg. Industry 17 9 13 3 2 

Slate Industry 12 4 ? 1 

Slide Fastener Industry 4 3 1 

Sli ~ J'a.bric Kfg. Industry 12 2 ? 3 

Small Arms & .Ammunition In. d. 5 1 3 1 

Smoking Pipe Mfg. I nd• 23 5 15 2 1 

Soap &· Glycerine Industry 72 21 42 6 3 

Soft J'ibre Mfg. Ind. 6 6 

Soft Lime Rock Industry 1 1 

Solid !raided Cord Indu.stry 2 2 

Southern Rice lUlling Ind. 11 6 5 

$pec1al Tool, Die & MaChine 

94 183 17 16 Shop Indu.atry 310 

$pecialty Accounting Mfg. Ind. 8 4 4 

Spice Grinding Ind. 6 3 1 1 1 

Spray Painting & J'1nish1ng Equip2 1 1 

ment Kfg. Ind. 

Stained & Leaded Glaaa Ind. 1 1 

Stay Yf g. Indus try 28 9 15 3 1 

Steam Rea ting :Zquipmen t Ind. 1 1 

Steel Casting Industry 37 10 21 1 5 

Steel Plate Fabricating Ind. 19 6 12 l 

Steel Tubular & Firebox Boiler 

4 4 3 

Indnstry 11 

Steel Wool Industry 2 I 2 

Stereotype Dry Mat Indu.stry 1 1 

Stock Exchange Firms 35 7 13 15 

Stone !'iniahing Machinery and 

1 ] 

Eqa.ipment I ndustry 130 39 71 6 14 

Structural Clay Products Ind. 

9861 
-192-

Code Series T.ULE XX 

NRA ~TE OFFICE COMPLAINT -STATISTICS 

NUMBER OF lABOR CASES, BY CODE AND METHOD OF DISPOSITION 

Total of all Offices, October, 1933 - May, 1935 _(Continued) 

Method of Disposition 

Codes Total J.djusted Uo Violation Dropned Pending 

Sulphonated Oil Mfg. Ind. 3 1 2 

Surgical Distributors Trade 9 3 5 1 

Surgical Dressing Industry 10 5 4 1 

Stru.ctural steel & Iron 

Fabricating Industry 22 4 16 2 

Table Oil Cloth Industry 6 4 2 

Tag Industry 18 4 12 1 1 

Talc & Soapstone Ind. 3 2 1 

Tank Car Service 1 1 

Tanning Extract Indus try 1 1 

Terra Cotta Industry 2 2 

Textile Bag Industry 54 16 35 3. 

Textile Examining, Shrinking, 

and Refinishing Industry 2 2 

Textile MaChinery Mfg. Ind. 28 12 14 1 1 

Textile Print Roller Engraving 

Industry 1 1 

Textile Processing Industry 102. 34 44 15 9 

Throwing Industry 55 9 30 12 4 

Toll Bridge Industry 5 3 2 

'Toy & Playthings Industry 285 96 103 69 17 

Trailer Mfg. Industry 14 7 3 1 3 

Transit Industry 220 55 109 36 20 

Transparent Materials Convertors 

Industry 6 2 2 2 

Trucking Industry 3557 1421 1412 413 311 

Umbrella Mfg. Industry 24 9 13 2 

Umbrella Frame & Hardware Mfg. 3 Industry 5 1 1 

Undergarment & Negligee Ind. 256 100 114 30 12 

Underwear & Allied Products Ind. 374 89 219 54 12 

Unit Heater & Unit Ventilator Ind. 11 3 5 1 2 

Upholstery & Drapery Textile Ind. 36 7 15 10 4 

Upholstery Spring & Accessori~s 20 8 10 2 

Upward Acting Doo~ Industry 2 2 

Used Textile Bag Industry 118 53 55 7 3 

Used Textile Machinery and ., 

Accessories Distributing Ind. 7 1 1 4 

Used Machinery and Equipment 3 1 

Distributing Industry 7 3 

Vacuum Cleaner Manufacturing 28 11 15 1 1 

Valve & Fittings Industry 39 24 14 1 

Vegetable Ivory Button Ind. 2 1 1 

Vel ve t Industry 6 1 3 1 1 

Venetian Blind Industry 8 6 1 1 

9861 
c d rie 

-193-

T.ABLI XX 

BBA. STATE OFFICE COMPUINT S'I!A.TISTICS 

NUMBER Ol LA.BOR Cl S, BY CODE AND METHOD OF DI SPOSI TI ON 

Total of all Offi ces, October, 1933 - May, 1935 (Continui) 

Method of Disposition 

Total Ad.1uated No Violation Dropped Pending 

Ti ~rifi d Clay Sewer Pipe Mfg. 

I all Paper II! g. 

Air J'urnace ltf g. I nd. 

Washing & Ironin& Machine Kfg. 

Industey 

Watch Case )(!g. Ind. 

aterproof Paper Industry 

Waterproofing, Dampproofing, 

caulking Compound Industry 

Waxed Paper Industry 

Welt Kfg. Ind. 

Wet Mop Mfg. Industry 

lheat nour llilling Industry 

lhDle~le Automotive Trade 

Wholesale Coal Industry 

Wholesale Confectioners Ind. 

Wholesale Food & Grocery Tr ade 

lt'holeaale Fresh Fruit & Vegetable Distributing Trad• 

Wholesale Monumental Granite 

lholesale Monumental Marble 

Wholesale or Distributing Trade 

Charcoal & Package Fuel 

l'llr Whol saling &: Dist ributing Tr. 

lholesale Plumbing & Heating 

Products 

Wholesale Tobacco Trade 

Window Glass Mfg. Industry 

Wine Induatr;y 

i~ing Cloth Industry 

Women's Belt Industry 

omen t s Neckwear & Scarf 

ood Cased Lead Pencil Ind. 

Wood Heel Industry 

ood Plug Industry 

food Preserving Industry 

ood Turning & Shaping Ind. 

looden Insulator Pin and Br acket 

anufacturing Industry 

Wool el t Mfg. 

oo1 Textile Industry 

ool Trade 

r eking & Salvage Industry 

Yeast Indusiery 

ot Reported 

9861 

9 

9 

38 

13 

11 

1 

1 

10 

2 

12 

208 

247 

10 

147 

1302 

594 

22 

1 

1270 

44 

3 

45 

108 

3 

69 

70 

59 

8 

6 

56 

1 

12 

34 

4 

5 

239 

4 

329 

8 

3SG. 

7 

5 

17 

4 

7 

1 

1 

1 

5 

101 

107 

4 

68 

533 

282 

15 

606 

15 

3 

17 

47 

1 

44 

28 

15 

3 

2 

25 

2 

13 

3 

3 

93 

2 

159 

4 

14 

2 

3 

19 

8 

1 

1 

7 

1 

3 

59 

95 

5 

53 

571 

233 

5 

1 

450 

25 

11 

37 

2 

15 

15 

27 

2 

4 

23 

1 

9 

14 

1 

2 

127 

1 

9fi 

3 

10 

1 

1 

3 

2 

1 

16 

23 

1 

16 

158 

36 

160 

2 

15 

10 

2 

22 

12 

1 

1 

4 

16 

1 

46 

10 

2 

3 

32 

22 

10 

40 

43 

2 

54 

2 

2 

14 

8 

5 

5 

2 

7 

1 

3 

3 

29 

1 

2 
-194-

Code Series 

9861 

TABLE XX 

NRA STATE OFFICE COMPLAINT STATISTICS 

NUMBER OF LABOR CASES, BY CODE AND METHOD OF DISPOSITION 

Total of all Offices, October, 1933- Ma ~ 1935 ( concluded) 

i/ !he offices were officially active from October 19, 1Q3~ to 

MaT 27, 1935• Included are 14 adjusted, 57 no vio~a~\on 

and ·43 dropped cases accepted pri or to Oc~ber 19, 1933. 

Prepared by: 

Statistical Section 

Field Division, NRA 

March 20, 1936 
-195-

!ABLI IT 

NRA S't'ATE On'ICE UOMPLAINTS STATISTICS 

TWenty-five OOdea with Greatest NUmber of tabor complaints,-oc t ober, 1933-May, 1935 

J8118 of oo4e TOt&l 

rotal 9o,oo1 

Restaurant Industry 14,664 

Retail FOod & Grocery 13,620 

Retail Trade 10 1 228 

construction Industry 6 1 977 

Motor vehicle Retail 6,060 

Hotel Industry 4,321 

TrUCking Industry 3,557 

Baking Industry 3,340 

Motor veh. Stg. & Pkg. 3,327 

Lumber & Timber Products 2,809 

Graphic Arts Industry 2,674 

Cleaning & nyeing Ind. 2,376 

Motion picture Industry 1,944 

Barber Shop Trade 1,620 

Boot & Shoe Industry 1,584 

Whse. Distributing Trade 1,317 

lfhse. :rood & Grocery 1, 302 

Retail solid FUel 1,273 

cotton Qarment Industry 1,160 

Laundry Industry 1,041 

Iee Industry 1,033 

Shoe Rebuilding Trade 998 

Fabricated Metals 961 

scrap Iron-Non Ferrous Met. 911 

FUrniture Mfg. 904 

prepared by: statistical section, 

Field Division, NRA 

March 20, 1936 

9861 

AdJusted 

6,822 

7,483 

4,876 

2,794 

3,152 

1,534 

1,421 

1,466 

1,239 

762 

1,013 

861 

72~ 

821 

583 

624 

533 

495 

546 

253 

423 

356 

410 

380 

358 

No Violation 

34,593 

5 , 0?3 

4,43~ 

4,302 

2,961 

2,163 

1,?71 

1,412 

1,208 

1,201 

1,445 

1,068 

905 

888 

563 

770 

475 

571 

590 

466 

387 

442 

586 

391 

350 

Dropped 

11, 002 

2 ,198 

1 ,136 

689 

645 

41? 

904 

413 

402 

?15 

493 

4 00 

506 

232 

216 

103 

162 

158 

97 

12? 

347 

123 

225 

92 

106 

96 

pending 

4,476 

571 

569 

361 

5?? 

328 

112 

311 

264 

1?2 

109 

193 

104 

99 

20 

128 

56 

40 

91 

21 

54 

45 

31 

68 

?5 

?? 

- J9l3-

I nterpr eta tio 1 o:: ci~e f i gtll'e<'> shoul cl be 11 c".o onl · :·:~te r ref renee 

to ce n sus d.a t (1 to ~~ :. tc'.i n the t ypicr-tl size o:f cst ~bl is~u~ents covered 

o~· t h e code s. I t S~lOulC. o e bo r ne in mind t ln.t t he fi{,"L:..:es r e ve r y 

h eavily wei ghted · ·i t~1. co ·_ l c ints ~a ns t f i r rns in the Se rvice and Distribu ting Trales, T:d. c:~ · .. ·m_,_lCL ch(l r P.. t eristica l l · · s>.o, .. , 2 . smal l numbe r of 

employ ees. 

(a) Li ~:- tions of t he :::tep o:r:_ti!)g Sc. :·.')l e . ;,e:' e a r e limi tation s in t he si ze o: t> .. e ::. e~~) orting sar•1ple. Of t~1e t o·kl l abor compl a ints , 

ca ses in ·:1h ich t h e si :::e o:..: the res·pondent' s .~~ ['ll o-; ..... t j.on rras not r ep orted 

constituted 36.1 per L;ei: t. For individuallv ~~? l' ....... ; eo. est.?.blishment s , 

usin..o: one c a se per est ..... b1 i shrnent , 34.7 p er c ent of the est ablishments 

sho\V no si z e da t (l. ~or J ...... :oo r Ci" ses. For all c c>.s cs ~.L;o.. ins ·~ clmins and combina tions 20 .l-~ pe r c en t ·:·ore not r eported. Adj uc teo. l c:-.o or ca ses sh o ~T ed 

27.7 per cent cases i.lo·c ::o~_ ort ed, a s con st ec.~. ,--i th ~~8 8 per cent for 

no viola tion cases, 5G.s pe r c ent for dropp ~ c r\se s , ~n~ 34.1 per cent 

for pending case s. 

The pe r ce:::c .e of units rep orte d a s 'belo11.._:; i n,·; to chains and cornbinc=ttions to total :!.' e·ooj:·l; c<". casos is 3· 7. Usins onlJ ~irst comp l a ints 

ngainst res·oondents c:l;..'.i n s a nd. ccmoj_na tions co:·::()l·is e 2. 3 ·oer cent. Chains 

comprise 2.6 per c ent c-.i.lC•. branch plants and sc>J .. ~s off ice s- t \1o-tenths-ofone per cent. The so :fi · u ::e s for bre.nch pla.nt s o.n c\. b r ,:-· ;,1 cl1 snle s offices 

a re probably low .. oecc.usc ·c~1e s y•Tlbals for rep ort ing ~1. ese ··ere not included 

in the original instructi ons . The figures for c.1o.ins 2.:.·e probabl y some-

'7ha t low also , as ? i ve st c-.tes reported no dat a on ~1ai s. 

(b) I nc-.ivi c".nc.llv Op erated Establishr.wnts. 

This cow1t i n o.:-.s ed on individually pcl ~..._t 0 .. e st2.blish..ments, 

and represents e~~ rienc e f or all StRte Offi c es co!iliine d . It i ncludes 

all normal cases, b-L,_t L-.i :f:fers from the basic f i :;u:.· os s~ ·m in Table I, 

by the number of ch2.L1s .nC'. com'oinat i ons ''lh i ch h2.ve bee!'l r e:1orted s epp.rately . First and successive cor:1pl a ints ag::.i nst res~~ ;>o C. n· s 2..r e shovm 

sep arately. First co: :::_")l.:: .. ints p resent a mec:o.r.-.ure of si z e of respondents 

c:~ sed on one E: ntr:y :.:1e r es co li s~J:-:l:::r t o(::.::.. J e ss of the i.1U..l1.J er of successive co ~) lc=ti nt s .:.g2.L1st t.: C'.t e ~tabl i slu0Em G. The 2)7 l 2.o or ca ses first 

classified as trei.e ··)::: :- cti ce e.nd subseoue r: tl~, fmu.F'. to oe l abor a.I'e not . " 

included. 

The sum- 1a ry of si -: e :.: l gure s for indep endentl: · opc1'2.t ed e st Ftbli shl'!l.ent s 

shows tha.t the 7110st t =·-::_)i c<:.'.l res~o ondent np lo;ve c~ .. : r or: 2 to 5 employees. 

Discounting c a ses i11 '. cl .. si ze was not re orte c~., 34. 6 ~) er cent of the 

total cases ·.:ere 10·:;.1 .:-.s :: "' .. ving 2 to 5 i"TOrkers. ? ift,_r p er cent of the 

cases had approxir.:c.t ~r 6 or fe,7e r emp loy ees. '.i:he r c.ti o;.1 of emp lo;yee s 

to est abli slli-nent s i n the 60 l a.r::;e st i ndust rie s covel· eel by the codes 

7as 8. 2 ( *) Thes e :~ -' ;u .. :::e s c>.re •:'!e i ghted by the 31 :.12.nu ?< .. cturing cod es in 

Dh ich the ave rC?.g e ':'IC. s 49 . 5 eia::_oloy ees. ' Servi ce t r :-- c'.es s:w ·:red an ave rage 

(*) Scope of I n rin strie s u :c1 C..el' approved Codes, Po st Corle Anal ;y-sis Publication No. 60 , ~>. :.·c~l 25 , 1934, and su-p·plement s Fo. 60- A, Hay 4, 1934 , and No. 60- E, cto oe ~ 6, 1934. 
· ; 
W' State Office Seriea 

(X) 

~ 

-

llumber o_ 

emplor-eoe 

in unit 

Total 

No employees 

One employee 

2-5 employees 

6-10 • 

11-25 II 

26-~ • 

51•100 " 101-200 • 

201-500 II 

501-1000 • 100]...5000 • 

Over 5000 1 

lfot reported 

T.A."8LI y 

NRA STATE OFFICE COMPLAINT STATISTICS 

SIZE OF ESTABLISIDa:NT - INDEPENDENTLY OPERATED ESTABLISHMmTS 

Labor Code Cases, Total of all Offices, Oe;tober, 1933 - May, 1935 !} 

Total Adjusted lfo Violation 

First Multiple First Multiple First Mu.ltiple 

Complaint Complain te Complaint Complaints Complaint Complaints 

90.314 23,927 38,311 9,780 36.7lto 8,770 

1,627 89 509 30 1,019 51 

5,110 1m 2,637 195 1,811 139 22,0~ 3,176 11,150 1,~ 7,766 1,053 12,1 2,904 ~,875 1, 4,,94 998 

8,755 2,616 ,052 1,320 3. 55 893 

4.093 1,69' 1,766 811 1,685 587 2,2S3 1,09 915 501 994 443 

1,393 8t9 537 381 664 305 

958 9D 355 2S8 495 307 

273 189 lOS 54 '139 121 

203 207 57 35 121 162 

21 147 8 115 11 25 

31,371 9,908 10,342 2,967 13,986 3,686 

AI The offices were officially active from October 19, 1933, to May 27, 1935. 

Prepared by& 

Sta\istieel Section, 

Jield Division, NRl 

March 14-, 1936 

Dropped Pending 

First Multiple !'iret Multiple 

Complaint Complaint. Complaint Complaints 

10,381 3.957 4,8S4 1,418 

n ~ 18 3 

459 203 22 

2,020 307 1,1~ 175 ~ • 

w 933 2S3 742 179 t 678 233 570 170 

332 180 310 117 

198 96 176 54 

94 81. 98 62 

i~ 51 ~ ~ 

9 12 5 14 1 11 3 6 2 1 

5.499 2,655 1,544 6oo 
~ State Off1oe Ser~e• 

! T-'»X.. n 

Jl. Jl. A. STAT:i OJ'FIC3 CC~a'L!INT STATISTICS 

SIZI 07 :BST.A:BLISIOO:NT - C&INS Cll COY:BINA!'IONS 

Labor Code Caaea, Total ot flrat aDd Su.ceees1Te complainta against Respondents, all Offices, October, 1933-Me;r, 1935 !/ 

-- Number of UlplO)"eea Total 

in unite of Chaine !'ota1 number of A4Ja,ate4 

and Combinationa eetabliahmenta 

Total 4,43& 2,521 2,150 

No employ-ees b 2 1 

One employ-ee 51 42 29 

2 to 5 eaap. 9!~ a91 500 

b to 10 " b9~ 11 379 

11 to 25 " b34 395 310 

26 to 50 " 308 21b 192 

51 to 100 • 28b 153 127 

101 to 200 a lbO 100 77 

201 to 500 " 147 b5 b2 

501 to 1,000 " 50 30 14 

1,001 to 5,000 " 105 2l 48 

Over 5,000 • 38 ~~ 19 

Jiot B,_eporte4 9l~ 332 

!/ The orfioea were otf1ciall7 act1Te from October 19, 1933 to~ 27, 1935 

Bo Tio1at1on Dropped 

1,800 327 

3 1 

18 3 3~ 21 

266 24 

~~ 130 ~' 20 

6& 12 

b5 13 

33 - 3 

57 ... 18 1 

'8b 1bl) 

Prepared b7: 

Statistical Section, 

Field DiTision, NRA 

March 14, 193b 

Pendil\g 

159 

1 

1 

32 

25 

27 

22 

9 

5 

7 

-

-

_30 ·-
of 4. 8 emplo re es 2J e :c· L.st -Jl_ ishment, ru t. 1' 1. c~:. b f oi' l l Distr ibuting 

co ctes r11a 3. 6. A :i ,. e}_; .-., eous .,roup of 11 coc".o s L. .u ~. ing Trucking and 

Construction sho··;c r'_ <:',il e:. 2.~· of 11 .1 em}JlOJNJs . 

The l 'lr g e t :'Yl:.:~ "u : of compl a int s ... :p ort . ··ei~o u:., ei' t he Rest n.ur nnt 

Co de and the second 1 - r ·e st uncl e r the i.tet c=t il !' t~. t:.!"'Cl.. C' 1·oc e r y . The rn.tio 

of em:plo;rees to cc ~; "uli. .... uent s in t h ese indu st r ie s e 1·c 4.1 a nd 4. 4, respectively . L[',uOr co· ·~1 t. t s repo r ted in 11 Sc1· .rice t r ~ es tot a lled 

25 ,758, or 21 .7 per ce· .t o::' the tot :1.l l ?.bor co .1·:.~ ints . 

A L..., r:;e nur-1be j: :~ co ·: int s n.r~ 11 inst e st <.' b1 i :.~. ~1 t s •:·i th no emp loyees are shown no t t o ~,; , c t u al vi ol ?.ti ons. 

Investig a t i on of O:i.'i -; inal rep orts sh o"rs tl1 .~ •. t ['. c., ·' e proportion of 

a djusted cOJnplt>.i nt s -..c_: [' :..: ·c e st P.bli s hme::nt s h.:1vi nc :10 e · ~~) lo e s -:ve re Barber 

Shop cases.(*) A ~L~oe r o.!.' the s e concerned l aoo :.· os ce r viol a tion s . The 

majorit;y of these ··e_·e re~) orted b r the Massa chu.se t ·cs Office . 

5. st abli sl:.; !e ~:l;s o·)er pted as Units of ClK',il}.§. ___ Q.r COL)binc tions. 

Se:para te co:·:-_1 i }_ :Ci c:.s of fi[,ure: s ·rere rncv-.e i'o1· est ~.blishme nts operc=tted as units of c:1 .. L .8 Ol' coFlbina tions , so t h2.t ·~:w se :;i -;ht be distingu ished f r olil inde~)e 'l lt -_,_:_its, in deternining t~1c t-: ?iccl violator, and 

also in r.:le asuri ·~ ~1 e i::ci ' ence of wn(:: e re stitu ti on :}<:~ en ts on small 

est."?.blishrnents ( Se e '='2.:Jle YI). 

A tot a l of i'i: t ~.l'l c.l_ S"l..l.ccessive compl a ints ;'"~'. inst :r e sy ondents is 

rnost re:presente.tive f o:.· c __ ;:,_ins since compl P.ints r·,·; ...... ,:. nst 2. series of units 

bel ong ing to chai n s ··e:;:e -._,_su a lly carried on one C.oc!:e t nu:·1ber. Adcl.itional 

data shm-!ing count s :?or local, sectionc=tl , ti on::. l 6 .2,ii'ls , branch p l ants 

and ·o ranch sales :- es ;:,_ :: e vaila le in the :i:cco :· -s of the Field Di vision. 

6. Sourve of Lt'.Jo:.· :~ 1l c=dnts. -'- SUJli ffi8.).7 D>o· ·ii1._: t :'pical source 

of co3J?la.ints a.ocl:e t e·d 'J · the 54 St te Off i c es, r~ ,.)-- c-' :.·s L1 Table VII. 

The totals r.:: e -.J~,::c c on a ll norma l l o..bor ':~~; ,'. ·G s 6.ocketed by 

St a te Offices, e~ ~u( ~ 37 ca s e s ri nRl~ ~e~o e~ s l abor ca ses 

and subsequently :o ·~ :;_1c. t o oe tr ~--l. e 'Dr e ct?.se s). C<.',s es subseuquently 

referre d to the co ·.e ;:-,'l,_·c::o ri ty , ei t h r on ~!c e O:i.' i n the first 

inst.q.nce, are e xc2.1.1.t".eC:., 'l"'.:_;_ e s::; t :1ey ' Ie:. e ~·-: in :." s·~ ._-._:c·n (~ to the St a te 

Office fo r 8.cti on. _:: ~! e:. e · -e re relP-t ivel y f e'7 i: r·~ -nce s of that type . 

Gr.:md totals of 5l.~ st .te office s ~1 w t h;'.t ~.-·J:- Llc:'t el r the same 

number of adjust ect co· :~'J .c. 1 Jc s \/ere file cl by pre sent e:J)lo:··ees and forme r 

employees. The re ·_--: e :c·e , :·w·:Ieve r , r:1ark ed di ffei·enc e s in t he proportions 

reported r indivi c~uc l o:::'f ices. :i!.,or e:car1ple, r e·1 -.: l~ : si.1ons 404 adjusted cases concernLlG :::;:·e ::; e;.'lt e r•1:9lo;.ree s, a s co--1!JC,l'ec;. c·i 1 929 concerning 

(*) Not e t !lere i s s o--. e r· .. e stion a s to ,-!hether 3<:..ro e :;: 1o p cases mi f~ ht 

p roperl y b e co ~s ~0 ed code cas e s , since the o~ p rovisions ere 

cont ing ent ~) n -~ :lC :::)-;_-._ tting i nto eff ect of Jc r ... e j_)r - ctice area 

agr eements :Cic~- --e :.·e i1ever m8.de . 

9861 

State Office Series 

-200-

T.ABLI IIT 

B.R.A. S!Afl OJ7ICX COYPLAIBT STA!ISTICS 

OOtllWI 

Labor Code Cases, Total of all Offices, October, 1933 - Mq, 1935 !!I 

Bo 

Source of Oomplainta !qtal Cases AdJusted V,iolation Dropped Pend.i.ng 

.l}.l SOlll"Ce 8 118,677 50,240 47,312 14,663 6,462 

jJ).()D1JIOUI 7,846 2,021 4,308 1,141 376 

1Dlplo78• (status nnlmon) 8,3>9 2,928 3,763 1,179 339 

Present empleJee ?/1, '194 13,122 10,412 2,759 1,501 

Jormer emplo78e 29,880 13,9~3 10,018 3,545 2,334 

Competitor 2,959 939 1,586 331 103 

Office sta:tt 14,388 7,885 5,029 885 589 

Code authori t7 6,288 2,288 2,639 912 449 

State agenCJ' 1,245 501 512 152 80 

GoT1 \ purchaaiDg agenc7 317 142 137 8 30 

Labor u:Aioa 4,085 1,609 1,879 423 174 

!rade association 781 272 389 87 33 

Other sourcea 13,13? 4,399 6 ,456 1,877 405 

Source unlmon 1,748 151 184 1,364 49 

II !he otficea were otficial17 active from October 19·, ~ to llq 2?, 1935 • 

.Uso included are 14 adJusted, 5? DO Tiolation, ar.i 43 dropped cases accepted 

prior to October 1', 1933. 

Prepared 'b71 

Statistical Section, 

Jield Division, lllU. 

Karch 3, 1936 

9861 

- 201-

former erroloyee • ~C.iC~.: _:--. c-'10'1ed 282 a dju st ed cc.: e s COi1 ce r ninp present 

employ e e s an d 678 o:_c ·· i: ~· fo :rme r cm_; l o ees. Oil ~:: c other hand , Massachusetts s howe d 2:~ ,"'(,]l'.S ccd c a s s (=l.. in st ·!Jr e ·A'll'C e 1~0 loyees comp ared 

with 47 9 a ?tinst :L'o:t.··1 :.:· c·::?l o:··ee s . The ti oilS ~- ~) i s evi de n tly nffe cted by t h e nass c o:-:·"'li<:.:lcc :·lr ogr :un . l . eerns _p ro)-iJJ. e tha t the re we r e inherent d iL.er ences in 1.·e· o::tin6 bet, ,een o:1 s, si:.:!c e Sa n Francisco r e- r· r p orts . 5 p nt ~hilc,Los gel e s sho 7s o . O e~ t ca se s aga in~t 

for;n e r employe e s as co ~-~ .:·cd ,·;i th t he totcl of 1e1· "'.'10. p r eseT,lt employees. 

B. ComPliance Fa c t ors. ::::1e t c:>.bl a s which h "'.ve 'be en ::evi e\7ed above show 

general totals wbi c:1 c.~. i sc1o s e the mn.gni tude of the co~ :~ li nce p roblems, 

and illustrc- te t h e gene:::c.l char a ct e ristic" of i t. ~' .::-, res ,,ere cit ed to 

sho 1 t:1e p rovisi ons . :os"..; efl_uently viola ted, t he sou:·ce of the com l<=~ ints, 

the size of the res~ nr".en s establishment , and. t :w ro~J ortion of emp loyees c.ffected by violl'.ti on . These ., g ene r n.l st. c.t i stics of a dministration of labor ret;uL:·.t io:ls. 

The follo v7in.:; ro ~l of t ables is devote d ~J ec i:Zi .::: c:.. ll- to the p roblems 

of secu rinr, compli a:.1c e . ~:1 e figures ca n s:1o·.1 o:1l J' t '1e o·oserved results 

in terms of v7 .-re:. e r e st i t·"·.tion collected, a nd in ce :·:l "' o:~ the amount of time 

invested in a d justL1e:; cc. cc s , 1i th n.ddi ti onf.,l <1:-.tC'. Oi'1. :1ethocls used in closing cases. 

(a) }a f!. e :Restit-.. ... tio:1. ':::he Cor.r lianc e :Jivisi o 1 0 ttenp ted to secure 

restitution for b<?t:1 ~m.:.l.~ d W::l..ge cases. The a1~ ou:n t ~r ullich payments 

had failed to e qu e.l :.;he co C::.e minimum ~'Vas usu ally •w:·e ea sily ascertained, 

in spite of f a lsifie( :..·cc o:L'O.s , than the cor:: ect c:- i1 t ~. e for ov~rtir1e. 

T~e . i ssu.e concer _~ oi.:e1.·Jc i ne wa s confused, s; nee : 12.:1:' coG.es p rovided no 

l egal rate for ove1.·tL . '.':.1he Cor•lpliance Jivislon., i1 o···ever, made an 

effort te secure co: -J ls o. ti on with a p c:nal ty ~ c 3ol' illega l . overtime 

worked. 

In the analysi s of se s made after the Sc ec~t er &ecisi on, an 

effort was made to co11::ine nag e rest itution fi ~-;1..u· s to monev which was 

actually paid.(*) 

National totals fo r Jc_1e amount of w.::Jg e r estitution collected, and 

the nu!nber of emplo:-e es ~x.id , in l a bor adjusted case s 2.l'e shown in summary in Tabl e VIII . T:1ese f i g;ures re-:? r e s ent collections from Oc tobe r 19 , 

1933, to lilay 27 , 193 5, :c:1e :p eriod during .1h ich lJ:ELA St ~'. te Offices were 

off icially active. I,i1Clc:.c.ed also a re 25 ses 2.c cel1tecl. p rior to October 

19, 1933 , by othe1.· c..:;e:·_ci es fo~ HRA . 

1. Q:uali:fic.:-.t io·ls . The t _otal of $3 , 611, \>39 · 81 re:9ort e d. in the 

present su.rveJ is to bo co;.:trasted ·-rith .the cu,·n,l:-.tive total of stc:>.tistical reports bet neen J· ~1e 16 , 1934, and Eay 27 , 1935 , of $3 , )+61,186 . 94 on 

(*) Instructions c.:;ceC. J·_.,_ l y 10, 193 ;: , "'t:l,ted t~1l' t ~m.,_ ts of restitution 

reported on a cljustec.:. c .:.-,sc s should i n··l u de amount s in iJoney or neg otia ble 

instruments a ctuall:r se c-(• ... :ed. from the res:ponde11t . 'J: e fi t:,ure for number 

of employees receivinc; :·estitu tio.n was to re n·es ent t~1ose c:- ctually receiving restitution, Ol.' i11 be11alf of wh om rest i t 1.t i on fu 11cl s ,.,ere collected oy the State office i:1cluding e111ployees not locc:-.tec.. 

9861 
- 202-

code cases. That the L1c~_c.,_sion of -fi p;ures for ei cht ac_C_i tional months 

e~e s a neglig ible c1if:e:.·e:;.1ce in the total is the resul t of the fact that 

survey figur e s re-:9 r e sent 2.ctual -:9ayment s, ,_,rhile b i- 7eel;::l, r reports ue re 

SOE1etirnes inflated_ -0 ~ L1cl~_ _si n of n oney due but ·~ y et pai d, because 

tp.e· offices '.7ere 2.tter:ptinc to mC~ke a g ood efficiency rc.ting . 

Fieures repartee}_ 1e re 1·epresent money collecteC:_ on adjusted cases 

only . A small proportio:.1, p robabl y not over 5 2_Jer cent of t~1e total of 

$140,648.76 wag e re st itution collected on compro:·:isect cases, rep resents 

collections on dro:p:9e c::_ .:'.n cl pending cases w·hich s~10ul d be a c1ded to t 'he 

figures guot eo_ a bove to c i ve tot a l sums collect e o_. 

There is an c..c_r:_i ti o~1.:- l qualification _that u~\·: e restitution funds in 

the' possession of :i.TI.lA St .:- t e. Offices on May 27, l S35 , but not disbursed 

to employees subse c~ue l·lt r", are included in the totc.ls QUOted. 

1urthermore, the tot ~'ls include $235,908.11 :=- c,_ in notes. This 

represents 6.5 p er cen t of the total collected on adjusted cases. Note s 

were used as the nethocl of payment in 941 or 2 .9 }_)er cent of the cases. 

No.te s h ave been count cci.. 2.t :2'ull va lue., al t l1ou gh the1·e is a p o ssi bil i t y 

of default, particulc-.rl:. ~ 0~1 any notes outstandL1g on I:ay 27, 1935·(*) 

The figure of $112.16 rep orted as the avere.c;e <:.TJ ount of restitution 

per case is an abnorr.~2 11z~ ~1 h figure affected bzr sane ex tremely l a r g e 

cases. For examp l e , re:·::e1'ei1ce to Ta'ble I X shm-rs thc..t the larg est number 

of est ablishments p2.--in::; iT'Ce restitution e T'lployecl froTJ 2 to 5 work ers, 

and_ that the aver~~; e p er case in this g roup was ~) L~8. 39 . The arithmetic 

average cited above is L1flnenced by 10 cases in c st.:'.blishments emp loy ing 

over 5,000, a.nd a-\;-er.:-.c;inc; 0601.00 per c ase, anc1 b:r 1L~2 cases, in firms 

with 501-1000 workers i n rr:1ich an averag e of $523 .66 per case was paid. 

2. Prop ortion of Cases in which Re stitution uas Not Collected. 

As shm-m in Table VI II, ·ci eJ~e 17ere 17,414 c ases iY1 tl:i ch no figures n ere 

quoted for amounts of rr.-;·; e restitution paid, or number of employ ees 

affected. These constitute 34.4 per cent of t he tot2~ nui:~ber of adjusted 

cases shown in Table VIII. In addition, there r;ere 855 cases in \7hi ch 

no amount of restit1.:..tion Has reported, although the ur~ber of employ ees 

receiving re stituti on ues shbwn. 

One a pproc..ch to the p roblem of me a surinc; the e::--:tent to which 

restitution mi ght ~~vc been collected in the 17,414 ca ses is to examine 

the fi gure s for the lTu.n'boj_•s of hour and wag e vi ol ations in p roportion 

to the total number of ce'..ses. As shovm in Table II, 2. total of 85 ,235 

a djusted labor viol2..tio:1s occurring in 50,311 c2.se s ~.r e1·e reported. Of 

these violations 39 , 76S -or 46.7 per cent were hour vi ol a tions, 40,754 

or 47.8 per cent '.Jej_·e n ;:--.=_; e violations, and 4, 712 or 5. 5 p er cent \:ere 

violations of g ene1·cl -·Jrovi sions. 

(*) The fi gure f or c>.:wt'.:1'G j_)C::.id in notes is inflc.tec_ sli ·:h tly by the 

fact that onl~r ~10 :1 et~1 od of payment c oul d be t.:'..bUl2.ted for a case . 

Thos e cases in ~:> icll both notes and cash ne1·e used . .rere tabulated 

with the entire o..:·:o\.'_j_1t under notes. 

9861 
- ::'03-

.(earl:r a ll . Ol1.'.' c..:1. · ·:'.-·e vi ol .,tions are of t'1e t· .. .,e 'r' ich should 

carr r Wn('.:.e r e,.,t i tutioi.. ~o .:1 ,ce rtuin the numbc·~· o_ C'"'~,C"' Hhich hould 

carry ''7a · restitnti r:, :.o··eve r , an undupJ.ic.-,ten. c':>unt of cases involving either hour or ·.::: ·:c vir lations or botJ iG rer_1.i:i.·e::. This fi re i s 

not available and. cr-:: I)(; r-: _)roxirJat ed onl~r b; o0G c r viil · that there were 

34, 228 adjusted casos i ·volving hour violations , o..nc1. 1G , 053 in 1hich 

there uere no hour ~iol ~t ions . There vere also 37 ~29 ~djus ted cases 

involvin_ •.1a:;e vi ol t i oi.s '"''1d 12, 632 cnses in ··~1 ich no ·a::.f_'e viola tions 

occurred. Since l'esti t '.ti"n v1a collected in a . o..::iu• '.:~ of 33 , 153 cc::.sec , 

there nere 4 , 4 76 C.:' •:; c s :.i1 <1ich com:9ensati on .fo:· rr:- 6 vi .)l a tions ·.7ere 

not obtained. Usi n:"' t; __ c s2...1e reasoning , there ·.:e re 1 , 073 cac:-,es in rhi ch 

hour violations ·1erc ::Jt co::1pensated. I f , e .~:~o Ghe Jlost conservntive 

a ssumpticn possible O..i1~- co:1sider that a ll the unco:J~Jei1Gc,ted houl' cases 

occurred in cases L1 -:-~_ic~ \7a .. e viol ations '7e re l::;o 1.:1conpensated, VTe 

h.:wo a mininmrn oi' )~ , l~- 6 c.C.justed cases in 7hich '.7"Ge ::-est i tution mi ght 

have been ob t a i nec'., but :1o coll e c tion s rre r e me.cle . 

3· ~1a~e :'.esti t-,,_t_ian , by_Size of E~t.:>.Q_li_sl:: 1ci_t . A study of 

the amount f w~~; e :.:e ,..:cit·.lt ion paid by indivi&ur ll~.r O")O r 2..t ed estc>.blishments aud 'b r unit:. ...;elo::Gi:_g~t.o•chrui.ns anc~. cor:bin..,.-:io s .; accordi ng to 

size of establ ishment uc:.s r::.ade on the basi s of -~i lees repo rted by ten 

offi c es.( *) 

The tabl e n ·.·e:..·e "uased on a ll types o:Z co··.e c;'.ses, that is, 

nornal code cases, c c:::cs ::ccei ved by State Of::.'i ce s f r oi.: Com~) liance 

Bi strict Of fices, :·e~ o:;,· J.::oc. cases sent on r eference to Cocle Authoriti e s 

p r ior to June 16, l S34 , ..;oot a nd Shoe Cas e s orir;inc.t inc i n the Nevr Engl and ass compl irncc o.:_; :co..::J , aYJ.d dupl icate entries for :?E'- rment of wage 

resti tution i n k i nci. :Jot~1 first and successi ve ~~)l::\int s agai nst re sp ondents a r e us ed. 

The Tables sJ.1o·:; l"estitution amm::.ntin-:::; to C832 , 339 . 87 . Of this 

..,801 , 4 76 .96 or 96. 3 ~Je:i.' ce·-tt :va.s rep orted a s p;-.icl. o:- ir.('.i vi dual ly ope rated establishments 2-:.1c. ~30 , 862 .91 or 3. 9 pe r cenJc ·.:c:,s rep or ted as paid 

by uni ts of chains o:;.· co :·~'J inc.t .J ns . Payments b;- i !1.C::.i vio.ual ly opera ted 

est::~ bl shments ··rerc .1;-.C::.e in 7, 073 cp.ses o::- 96 . 2 p e::.· cent , and. in uni ts 

of chai ns and c o·,.1bino.tio:1s by 276 cases or ) . 8 per ce:-lt . I t seems p r obabl e that the f i {'11:..'e s :?o:..· c.1ains ancl cornb i n::tt io:1s is 1 o--•, and that t i1ere 

a r e additional unit n ·oo lo ~1(: ing to chains or co .. ~oi:1~· i ons ·::hich nere rep orted wi t hout specitJ.l t c3ig::1ati on a nd so h:o.ve been incluC:ed 'Vi th indiv i dually oper atecl e nt .~.bJ i s:1.::-.1ents. 

Tabl e ~~ ·o:i.'C:..e:nn data on indep enden t es:..;c ·b~.i s~men ts only . 

4. .l ~-;e ~'.esti·!;~:.tio n SumJ'1a r v . After ~~- :..·cvi e·- of the figur e s 

one is impressed " i t:1 tao ~) ;- ct ical di ffi cul ties of the ~) rob em of obtainine; '.7age restit-L'.ti o:'l ::or all hour and \'Tac;e vi oJ. c.t ions that .1ere 

clocketed. The fc:~ct )c~_c.Jc tl1e majori ty of the cases r·e1·e c:.gai n st establ ishr::ents empl oying 2 'co ) ·:: .~ ers, and that in these cs·~. "uJ.:i.shment s a ll 

( *) Tabl e 1 I X A:-:o1:.:.:.t o:? : ... _ost itution and liu ·:~·oe:: of :=.:·· ::.o-rees Paid, by 

Size of Indeye::C.e:::.tl:- Oper a ted Establi ..,l1:.:ents, ~en Selected. O_:'i'ices. 
"'!• 

".. .·. 
co lpeeial Ser1ea CD 

= 

Slse of 1D4eperac1,. 

entl7 operated 

eda'blhbmenh 

!otal 

We ta~>lOJ'OOI 

ODe tmpl.o)'ee 

2-5 emp1qeea 

6-10 • 11-25 • 26-50 

51-100 " • 101-200 • 

201-500 I 

501-1.000 I 

100]...5000 • 

OYer .5000 • 

l'ot reported 

f.UILJI XXXI I 

DA. S!AH arJ'ICI OOYPLUH ST.A.TISTIOS 

JJmlrr OY USTITO'riOI .utD 1ltJJCBD 07 IIIPLOYL.iS P.UD, :BY SIZI OY li~DD1'LY OPD.UD :IS!.UILISB1!11'rS 

Labor A4jua\e4 Oo4e Ouea, 'J!otal of 10 Seleo\ed 01'f1oea, Ootober, 1933 - )lq, 1935 tf 

AJ:era.aa 

Jfmnber 4moun' Jmplo,-eee ---~,.. Jlawa' -lqeea 

of paid paid tiiiPlOJ'M t•r caae per caee 

oaae~ (Dollara) (D.llara) D.llan) 

7.073 801,476.96 41,742 19.20 U).)1 5·9 

---------- ------ -- 439 18,269.90 471 38.79 1J1.62 1.1 

2,1~ 103,198-~ 3. 7lto zr.1s a,g.S9 1.1 

1,4~ 95.m· 3,181 30·03 66.62 2.2 

1,1 121, ·R 5,089 23.19 =,.o6.17 

~ 11~,661. 6,629 17.,., 1~-5S -·-- 10.1 

s .256.26 6,1&94 12.'1 2 -~ u., 

217 95.o6o·50 6,71 1-.1 4:n. 30·9 1~ 75,070·35 5.= ij.66 528.66 31·1 

23 6,510.02 13.118 286.()9 21d 

10 6,010.95 158 38.04 6o1.10 15.1 

_... , ·---- - - 539 79.564 36 3,280 24.26 147.61 6.1 

a/ !be aelected office• are: De1a118l"e, Didriot of Columbia, l&aryland, lew Jeraq, Vorth Caralina, Philadelphia, flt~lbargh, Virginia, 

. llaaeaollllaetta and KUmeeota. 'fhte lff1cea ware offio1a117 acUTe :trom October 19, 1933, to Mq ZT. 1935· 

Pr-:pared "bya 

8\a\iatioal Section 

hold Di:ridoa, ~ 

~- \2, 1,,, 

employees t ended to h.:-ve c."l)erienccd hour or · ~ :e vioL'.tions or both, mD. e 

it lifficul t to secL .... ·e l'csti tution fl'OT'1 the res )Ond.cnt . Payroll records 

to establish the c:~tcnt of the viol::.ti on 1vere oftEn inc...clequ 2.te, and comp romise , usually in:.or:; 1 in such case'· , ~1ad to oc <'.o.o:,?ted. For the cases a djust ed, the ~.> <'' - !<':1t o:.: an aver n.[_:e of $24.05 ) Cl' en2)lo. ee and agr eement for future co ,-_..,li:'acc r:a s a boon to the incli vi (::;,w.ls. 

The :proble:; o:: ncce re .. ti t u tion coll ec·~io:1r: hc-ve been discussed 

in Chap ter V of Secti ~J. l ..) . . he ab ove cbser~athms h.:-.ve ·been inserted 

here only to g ive ·: :~)h~.sis to the report ed fi.:;u:t cc . 

5. TimE?_:::J~e:-:ent. in Closinr; Co.!:} 8_.i_Yl_~s. ~-nec ial at tention I'Tas 

g iven to the time :C ,·.ctor s in the pro 'blem of hc:.ncu. ~.: conpl a int s. First, 

information on tL;e o.,~)se .. '. be t ,·reen docke ti ng the co '.) l c'.int , and starting 

the investigation rrr-s :;.·e~ o1·ted. (Tabl e ) Seconc-., ~:lC elapsed time bet : een the beginni:1C: of ·c::e investigation a nd the :,':;_ ;-lr-·.1 closing of the 

case V7as indi catecl. ( 'l<" . .'Jle :a) From t l:e se fit.,u:.:es it uas p ossible to 

compute an average f or the umber of days olaps ec' oelol'e a ction was begun, and a second o..vo:'.· .. ·e :Zor time ela1:>sed in clo si n.-: the case after the ... J ~ ~o, _. 

investigation starte: . 

6. hie t l1.9_:'.:._ .9-::: _Q losin,o; Labor Cases. C2..pes i:aclu ~. ed in this t able 

a re normal case s i nvcsti."c..t ed by the St a te Of:'ices, e::cluding cases sent 

on reference to the C:oc:_e .'..u thori ty prior to June 16, 1S34. :Soth first ancl 

successive com~:> e.. nt s :::.c;c.i::1st respondents h D.ve be en i ncluded, but cer tain 

c a tegori e s of case s uso0_ i n preceding tabl es hc .ve been omitted from the 

p:-esent t a bl e . A;Jon · t~1ese are 438 a djusted cc::.ses ,".!ld 144 no violaticn 

cases, which were cross-referenced. to another co..se , .:::.ncl in which the 

method of closing r:.:::.s :..· e·.') o:·ted uncle r tha t case. Cc.ses clocketed prior to 

October 19, 1933, ~e~e so o~itted . 

In the re·')ol't:!. il::; of cases, offices •::ere L1.structed to shori the 

method. deemed most ef:Z ect i ve i n closing the case . ::.'or exa171ple , if both 

corresp ondence and t~e liel~ adjuster ry e re use~, ~J~ the activities of 

the fielC. acljuste:: · :c:'o l'econled as the m.etho ':. o-::: closing the case . Similarly, office co :.1~'e: c:1ce ','fas quoted i n IJr efel'eilce to j'ield Adjuster. 

"Court suit instit;Ltec . o:- com:;>l a inant , 11 nas not :.cll'_C:. ec . in the l ist of 

methods p rovide d i n the i :1str u ct i ons, ·out i n ~i ve cc::.se s no tes to this 

effect nere a ppe:1cled. ·~ seems probc..'.ble that t~1is ~s :wt a representative 

figure . 

Nationa l toJc2.::.s s:'J.o·.v that t he fi eld c.d.j1.'_s tCl~ nas used in closing 55 . 2 per cent of J~~1e ,-:-.,cl justed cases a nd 50 . 2 ~c r ce:1t of the no violation cases. Co:t :. ec- ~) O~lc- enc e YJas eL''ect ive i n. cl c,sin,~ 28 . 0 p er cent of 

the no violation c;:.ses :- s compa red '.ii t h 14 . 3 ·oci· ce:1t ol the adjusted 

cases. 
: 
state Office Ser1~ .. 

BILl X 

Jl.ll.J.. ST~ OJ'FICE COYPWIT STJ.TISTICS 

Time ~lapsed between Docketing and ~irst Action 

Labor Code Oases, Total of all Offices, October, 1933 - Kq, 1935. M 

Dqs elapsed 

between docketing 

and first action 

Total 

Action on dq 

of receipt 

1 d.a.T 

2 dqs 

3 dqa 

4 da1'• 

5-7 dqa 

8-10 ~ 

11-14 dqa 

15-28 dqa 

Over 28 dqa 

lot reported 

Total .AdJusted 

118,675 50,238 

17,263 9,225 

18,494 8,556 

12,212 4,969 

7,845 3,375 ., ,142 2,927 

19,025 7,405 

10,472 4,096 

8,133 3,314 

10,445 4,174 

4,628 1,761 

3,016 436 

lo 

Tio1ation Dropped Pending 

47,312 14,663 6,462 

6,079 1,182 777 

6,782 1,964 1,192 

5,229 1,237 77'1 

3,109 871 490 

2,994 754 467 

8,128 2,400 1,092 

4,420 1,428 528 

3,472 998 349 

4,443 1,440 388 

2,067 607 193 

589 1,782 3>9 

Jl The offices were officially- active trom October 19, 1933, t o Kq Z"', 1935. 

Includ8d are 14 adJusted, 57 no violation, and 43 troP:ed casas accepted 

prior to October 19, 1933. 

Prepared bya 

Statistical Section, 

fteld Division, IRA. 

·Karch 3, 1936 

9861 

State Office Serle• -207-

l.ll • .A. ST.AD OJ'J'IC:& COUPL.AIBT S!m8TIC8 

!IMI !LAP SID RITI'DH J'IR&r .ACTION A:RD CLO SIBG 

Labor Code Cases, Total of all Ofticea, October, 1933 - Mq, 19Z5 !}/ 

!im.e e1apaed between llo 

first action and !otal .AdJusted Tiolation Dropped 

clo•1Dg 

!otal 112,215 f50,240 4l1,312 14,663 

C1o aed on dq of 

receipt 6,609 3,968 2,339 302 

1-6 dqa 19,414 9,574 s,sn 1,269 

7-13 cla3'• 14,687 6,629 6,798 1,260 

1"-3> clqa 11,454 5,la> 5,398 .936 

21-3> daT• 13,632 6,065 6,225 1,342 

31-'5 clqa 12,485 5,567 5,616 1,302 

46-90 dqa 17,999 '1,82'1 7,413 2,759 

91-182 daT• 9,892 3,942 3,603 2,34'1 

6-1.2 mon,ha 3,687 1,293 1,069 1,325 

13-18 months 151 59 24 68 

OYer 18 months 15 13 1 1 

Bot reported 2,190 183 255 1,752 

Jl !he offices were of'fic1ail7 acti Te boom October 19, 1933 to Y~ 27, 1935 • 

.Uao incllwtd are 14 adJusted, 57 no violation and 43 dropped cases accepted 

prior to October 19, 1933. 

Prepared b7& 

Statistical Section, 

:rteld Division, liB.l 

March ' 3, 1936 

g861 
State Office Series 

!J.JI.I 1II 

NRA STATE OFFICE COMPLAINT STATISTICS 

METHOD OF 'CLOSING 

Labor Code Cases, Total of all Offices, ·October, 1953- May, ~935 !I 

" 

Tohl Adjusted Ho V1Qlation 

Method of Closing C.ases Percentages Cases · ,Percenta·ges Cases ·Percentages I 

Total of all methods 96, 897 100 49, 785 100 47,112 100 

Correspondence 20,579 21.5 7,581 14.8 15,198 28. 

Field Adjuster 52,579 54.5 •28, 959 58.2 25,620 50.2 

Office Conference 19, 249 19.9 10,811 21.7 8,458 17.9 

State or Local Adj ustment Board · 749 .7 500 1.0 249 .5 

Code Authority 2,440 2.5 1,489 5.0 951 2.0 . 

State Agency (Dept. of 

Labor, etc.) 567 .6 268 .6 299 .6 

Court suit instigat ed 

by complainant 5 .o 4 .o 1 .• o 

thknown 729 .7 57~ .7 556 .a 

!I Offices were officially active from October 19, 1953 -to May 27, 1935 

Prepared by: 

Statistical Section 

Field Division, NRA 

February 1, 1956 

9861 
~:09

Section 3 . Tr ad~ Practice Com l aint .. 

A. Nature of Viola tion, Tr acie Practice C::st'S . 1

ll1 r '.lat ive administrative difficulty a risi ng f rom trau.e Jr :t t ic e ·J ro v ~io ns is r efl ected 

in the sUI '1ar ;y f i r..:ur s ho'.iting tile tot 1 num'u er of ·Jiala tions, by class 

of p rovision iolat ed, ~s ) r e sented i~ Tabl e ~IV . 

A separ ate a na l y si" by ... Trp 

code end each su~p ementa.ry code 

gated by Stat e Offices. (*) 

nf viola t ion hns b een 9r ep a r ed fo r each 

1~ ~nich vi ol a tions ~ave b een inve stiIn using these f i ;ur e s e s ;;,n ind ex of the to t nl ti. iff icul t y with 

g iven trad practi ce provisions, a llm;rance must b e .. !:;.d e fc:t the even 

g r eater volU!Ile oi trade practice compl a ints handl ed by the Code Authoriti es. (**) Fur tner mo r e , gen er al li1n i tc::. tions discussed in t he in t roductory section a r e equally applica bl e in studyins t h io · a.t a . For example, trade pr ac tice figur es a r e a petrticula rly unsatisfactory index of 

comp liance, beca se they ci e murkedly affect ed by sp oradic efforts on the 

part of Code .h.utl10ri ti e s to enlist t he a id of the Sta te Offic es in securing price t'ilin0 s, sta tistica l r eports, or t he us e of labels. 

The inter-or e t a tion of the figures for ir~dividual type s of viola tions 

has been left to t he Trade Practice Stud. i e!:. Section o :{ t he Division of 

Review. ( ***) 

(*) Cop ies of aDalyses of indivic'~ual codes a re a va ilable for inspection in the records of the Field Division of l;.RA. Additional 

cop ies were distributeci to t ne Indus try G.nd. Tr &.de Pra ctice Stud ies 

Section, a nd to t he Code History Section for inclusion in the 

co 9ies of the histories. 

(**) On April 30 , 1935, the r e r.-e r e <193 coc:Les <: :1d s-.l~·~) mentary codes 

officie ll;y c,.utnori zeci for the h< ~5. ling of L 'i:-i•.io pr a.c tice comp laints. Some\;l e. t L1com] le t e r e0 orts f r01n Co<ie Au thor i ties for 

the bO ma.jor codes (c~10 sen on tne r~ is of si ~e ) and their 

suypl emen ts -'or a r e:9C'r tin""- :)eriod July 7, 1 934 , to May 25, 1935 , 

showed 1 98 , 707 tra<ie .:_J::: c...c t i ce co :~!p ai:n ts. The figur e s a re affected. by s e:: ious d iscre:9a:::1ci e s in definition c:..nd r eporting periods, but are cited only to iniicate that th e volume of trade 

practice com) l a int s ha ndl ed by code aut horities was in excess of 

that h t-:ndl ed by ·,~ te off ices. 

(***} Rep ort of Price Filing Unit, Chap t er VI, conta ins an ana l y sis 

9861 

of the p roportion of p rice f i ling violBt ions to total viola tions. 

Re-o ort of Co rnm odit r Informatio~ Un it also contains an analysis of 

trade pract,ice complaint stc,tistics. 
... 
State O!fiee Series 'UBI~ 

't 

co D'- SUR OD'ICJ COMPLUIT SfiTIS!'ICS 

OC' 

0":' lUmber of !rade Praotiee Cases InTesti~ted, 

- October, 1933 - MaT, 1935 AI 1--" 

Of!iees Cr,ee Ccrcmt Yirst complaint ~inst re~ndents 

b7 1lo 1lo 

Region Docketed Adjusted Tiolation Dropped PendiJ18 Docketed Adjusted Violation Drepped. Pend~ 

!'otal all Offices 36,425 19,674 8,094 5.295 3.362 31,951 17,2~3 6,920 4,sss 2,907 

!otal, llegion 1 2,596 1,19~ 989 62 351 2,212 1,013 !66 52 2131 

Kaine 171 !5 70 9 7 1~ 

{~ ~ 9 4 

••• Hampshire 114 51 50 2 11 102 1 

Vermont 34 ' 20 3 ----- 11 31 17 3 - 11 

llasaaelm.aetta 1,622 Po~ 629 31 223 1,38! 623 ~ 27 1!9 

Bhode I eland 264 85 6 69 ~u 81 71 3 42 

Cozmeeticui 391 195 152 14 30 169 139 12 26 

Total, Regioa 2 10,09! 5,320 1,091 2,873 !1~ 9.716 5.092 1,022 2,824 778 

.UbaD7, B.T. 1,302 762 ~~ 222 95 1,087 615 191 202 

Bllffalo, B.T. 1.~3 62~ 56 59 930 565 m 45 4i ·- Torll:, B.T. 7.753 3.93~ 564 2,595 66o 7.699 3,912 558 2,577 652 

!otal, llegion 3 5.m 2,382 1,326 773 52! 4,290 2,041 1,156 670 42:5 N • ., Jerae7 1,17 745 246 45 138 989 645 196 4o lOS ~ 

Philadelphia, Pa. 1,<>42 ~73 339 121 1-09 865 3~6 298 1~ 67 0 

P1 \hburgb, Pa. 736 430 185 50 71 577 3 7 137. 38 55 

Delaware lSS 63 100 7 18 181 1~ 97 7 lS 

llar7laD4 919 181 1169 502 S7 783 130 434 73 

District of Col. 2~ 175 65 2 7 230 156 65 2 7 

Virginia ~ 219 207 4 69 lt-72 200 200 4 6s 

Borth Carolina 202 96 35 42 29 193 92 33 41 27 

'!otal, legion 4 1,858 1,047 2.88 

~ 2lto 1,573 920 ~i 218 200 

·South Carolina 168 7C' ~ 3 129 1~ 31 

Georgia 319 180 54 21 243 50 38 1' 

nor14a "232 102 ~ ' 93 205 S7 21 7 90 

Tcmesaee 

~~ 294 141 72 473 Z77 25 121 50 llabama 171 22 -- 13 203 169 21 

-

13 

M1aa1aaipp1 70 23 26 lS 3 56 20 ~ 10 3 

Louieiana 330 207 6S 20 35 ~ 172 11 27 

Total, llegion 5 3.237 1,~6 821 224 699 2,717 1,205 703 1!1 628 

Miehipa 914 1490 200 " 132 92 719 378 155 116 TO 

Ohio 1,711 791 513 21 326 1,459 655 501 14 289 

lea\ Tirginia 98 6o 30 3 5 ~ 56 2S 2 

J:atuclq 514 145 25 6s Z'(6 116 19 li9 ~ 

State Office Series 'U.BLS 1' 

na. S!.An omc:z ooMPLA.m S'l'AUSTIOS 

(.0 

oc· !Umber of Trade Practice Cases IUTestigate4, - Octo~er, 1933 - KaT. 1935 ~ 0":' 

1-' 

Offioee Ql!.!e Ootm t J1ret eo~1~~t ~1net reSDOndeutl 

by Be Bo 

Region Docketed AdJusted Violation Dropped Pend in« Docketed jdJueted Violation Dropped PendiJ!C 

Total, Region 6 2,812 1,436 672 ~71 2:53 2,lio4 1,245 566 l!oo 193 

Wisconsin 350 177 1~~ 86 22 283 ~ 57 71 Indiana 762 471 127 50 710 106 114 ~ Illinois 1,381 669 lloS 151 153 1,149 564 334 128 123 

Mheouri ~19 119 85 107 s 262 99 69 ~ 1 

Total, Region 7 3.348 2,258 1f,g 21g 6' 2,900 1,981 6o6 266 47 

Minnesota 304 ~~ 2~ 194 ~7 

1' 

3 Iowa 54o 173 14 I ~70 306 1;4 Worth Dakota 152 l n 56 13 144 

South Dakota 112 24 12 9 19 ~i 19 i~ 7 Bebraeka '714 493 220 - 1 561 

m 

157 - 1 

Xansae 364 202 90 66 6 351 85 66 6 

Wyoming 709 583 36 so 10 662 28 79 Colorado 453 256 91 84 22 384 222 69 77 1I 

Total, Begion I 1,938 1,167 562 1,~ 886 396 103 13 N 119 90 .- .Arkansas 199 116 73 1 g S5 56 - 7 ..... Oklahoma 

f~ ~~ 87 70 ~ 4~ 1{0 Dallas, 'l'el!P 183 36 3 6 1b~ ~ J 

B'ous ton, 'l'exae 542 302 208 9 2J 4§~ ~~ 152. s 19 

!few Mexico 62 118 11 3 - 10 3 

Total, Begion 9 5 ... 529 3.384 1,5!8 215 3~ 4,6S8 2,86o 1,370 174 284 

Montana 251 104 124 16 1 210 Sl 112 14 J Idaho 220 1~ 97 - -- 170 100 10 

Utah 102 27 4 1 91 57 25 2 T 

Nevada 294 212 36 46 - 2~ 192 30 42 - Arizona so 41 34 1 4 52 20 · 2! 1 3 Washington 837 533 263 5 ~ 682 

~ 2ZT ~ 33 Oregon 483 303 133 1 392 101 33 

Loa .Angeles, Cali!. 1,839 !,002 599 11 167 1,6o7 s6o 550 51 139 

San J'raneieeo, Calif. 1,423 1,002 275 65 Sl 1,220 m 2ZT , b6 

AI !he offices were offieiall7 act1Te from Octo\er 19, 1933, to MAT 27, 1935. 

Prepared by& 

Statistical Section 

J1e1d DiTieion, BRA 

March 6. 1936 
"I ' 
It shoulC:. be ·oo i n t ed ou t that th0 e:~e ience of indi vidual cot'es , 

\lith alrr1ost i denti cal p:covisions, has vari ed ui de l y , TPe l ve coc'cc \J re 

found to be r e spon si 1<=> f or mo r e t han nal f of t hP r epo:i.·ted i nstances i n 

all codes of f ailure to adher e t o fi l ecl p r i ce s , unc1 fo:.: 36. 9 11e.:c cent of 

t :1e viola ticms of f a ilu r e to fi le n r icP s . Int e r p r e t e.t i on of t he sum11ary 

fi cur es, accorC.. inc l y , is depe.1dent ""J.p on a study of comp l aint s , t:\.J.""lc'. their 

concentra tion by code , and t he cont:i.·i bu.ti on of e a ch code t o t he total viol o.tions of a given t ype of p rovision . See t able XV for a list of ~1e 25 

codes ~ith the l a r g e st nl r of trade p r a ctice comp l a ints. 

] , Case Cove a~ e Th8 f : GQres nclud~ d in t abl e XI V a r e based oil no ~al 

c :-t.se s uncLer codes , e:-c l ucU ng any cases sent on refer enc e to Coci_e Au t :lor ities ri r to June l G, 1° 34 . 

C. Vi ol ati on s Ea ch vi ol ation i s st onn a g a i nst t he cl assifi cat ion m'de r 

uhi ch the p rovisi on viol[l.tecl 17<.\S p l a c ed . The sun of t 11e vi ol ation is, 

accordingl y , equal to or gr e a t er tha1 t >.e t ot a l numbe r of case s c"._ ocl~ eted . 

• l.-e thoc of p rep ( r at i on An a na l y si s of each t r ad.e p r a cti ce ca se f ile 

nas t r anSiui tted t o -gashingt on by t he St ette 1ffi.A office , t l1e in l~mat ion being r ecorded partly i n symbo l S. a:.1d ___ a rtly i n descrip tive :;;rords. E::ce:9 t 

fo r f our t ype s of c ode -)r evi si ons, dat a on t he nn.t u r e nf t he vi ol a t io11 or 

alleged vi ola tion v7a s furni sheci by r e ference to t he article a nd. se cti on of 

tl1e code con cerned . The p rovi si ons Here assi t;ned to a p articula r cl a ssifi ca tion by t he Wa shing ton st aff. Th i s method wa s me1.de nec sa ~r b~· the 

c onpl exi ty of t he reGUl a tions C'.r.L d t he va rie t y in t he l angu age u sed._ . As 

ui l l be seen below , a certa in amount of deta il ~~Ta s ne c e ssa rily lo st . 

P roblems encount e r ed i n cl assify ing provi sions. 

The diff iculties encountered in m[lking a comp l e t Al y a ccura te classif ica tion of tra d e ~:> ctic e p rovision s fl1C'.y "be d ivi ded genera lly i n to t wo 

g roup s . 

( a ) Those a rising from t he numerous refinements [ln6_ variations of p rov ision s of a simila r na ture in d i f fer ent coC:.es. In such ca ses, all simila r 

viola tions have been group e d together, as f ar as p ossi b le, unci er a singl e 

!lead i ng indicati ng t he general nature of t he p ractice whi ch was t he comn on object of regul a t i on . 

(b) Tho se ari si ng from t he f a ct t hat in a number of cocle s, severa l 

~:in s of trad_e p r a ctices were made t he subj e ct of regul a tion i n o.. single 

se c ti on or su b s e ction of t he code . It rya s i mp ossi bl e, therefore , en 

r ef erence rrn.s n ade to one of these p .:..ovisions, t o knor; nhich of the regul a tions h ad been viola ted_. I n such case s , vi ol a tions VTere arbitrarily assi.;,ned to t:1.e r:1ost co }~ n ki nQ of p r a ct i ce included in t he secti on. 

The p rincip al cla s sification di fficulti es which we r e nco~1t ~e d in 

classifying t he p r acti ce s occurrec i n o~r-e cti on nith t he top ics list ed 

belou . An exani nation of t hese probl ems Tiill t hrow l i ght on t he general 

value of t he data, a-""110.. '7ill a l so se rve t o i ndicate t he con t ent o:::' t h e 

1e ading s listed . 

(1) Proh i b ition of "de stru ctive ri ce cutting ft wr-1.s in many co ~_ s inc l udeo_ i n t he sru:1 e sec t ion ,-,i t i1 p ro hi bi tio:i.l of 11 s a.les bAl ow co st . 11 Thus 

i t nas no t :p ossibl e to de termine nhi ch p ro h i bi tio ~1 hll.C. "b ee l viola t ed . Since 

"cie st ruct i ve p rice cutting " vras i n t he se c a se s a vague and undefi ned concept , 

Me:_ since cost Tias an h 1p ortan t element in d.e t e r r:1 inin.r:: the "dest ruc tive 11 

nat u r e of a p rice, violatio:1 s of such s e ctions "Vlere a s si gned to t l1e :9 rohib i t ion of "sales be lou cost 11 • 

(2) I n cla ssifJring violations of "sales be low cost" p rovi sion s , a 

.di stinction vras made oetTieen p rovision s p roh i biting sales belon a co st 

9861 

• : 

' • 

0 

I 

0 • 

. 

> 

. I 

~ 

. 

2 

. 

z 

0 

~ 

ii 

! 

. . . . 

. 

z 

0 

; 

> 6 

~ 

. . 

• 

• 

0 

z 

N. R.A . Pr~ct ce Complaints 

.!'1800 

.~ 0 

.3~00 

3000 

600 

Z200 

2.000 

1800 

1600 

1400 

lZOO 

1000 

600 

4-00 

200 
NRA STATE OFFICE COMPLAINT STATISTICS 

VIOLATIONS OF TRADE PRACTICE AND ADMINISTRATIVE PROVISIONS 

_ To\al. of all codes for eJ.l 9ffices, October, 1933, - 14a.y, 1935 !f 

COt>E "AME __ U.-•;......;::.8;;... • ...;::smowtY===----.-----

Al n~etical Symbol _________ _ 

NO ·ADJUSTED - VI-OLATION DROPPED. PENDING· 

21 

.28 

29 

30 

31 

32 ' 

33 

34 

TOTAL NUMBER OF CASES __ ---.,36_.,"""425---._ 

TOTAL NUMBER OF VIOLATIONS 41,197 

STATISTICAL REPORTING 

~~~) ~ Fa_ilure to file statistics 

,(2) Failure to file labor statistics 

I PRICE FILING 

(1) Fail~re to file prices 

(2) Failure to post prices 

(3) Failure to file rates and tariffs 

MAXIMUM AND MINIMUM PRICES 

(1) Sales below minimum prices specified by code or Code Authority 

(2) Sales below emerJency price~ 

established 

( 3) Faiiure to ··comply· with "Limi tat ion-on-Price-Increase" 

DESTRUCTIVE PRICE CUTTING 

PRICE ADHERENCE ~I} Failure to adhere to filed prices 

(2} Failure to adhere to posted prices 

SALES BELOW COST 

(1) Sales below cost (manufacturing and 

non-distributing industries) 

(2) Violations of mark-up and lossl imitation provisions (distributing 

trades) 

(3) Cost determination (Graphic Arts 

Industries) 

(4) Failure to establish individual costaccounting system and miscellaneous 

costing violations 

19,p74 

21..960 

3,550 

69 ' 

4,060 

942 

336 

124 

176 

741 

?,?25 

9.205 

1, 229 

30 

1,"109 

129 

37 

1n 

73 

483 

6,15? 

saa 

10 

863 

152 

?§§ 

218 

10.'5 

27 

H 

101 

93 

3,362 

1,508 

14 

I ~ 6f() 

• 

227 

10 

31 

12 

40 

I 

M 

7 

• 
Alphabetical Symbol ________ _ 

NRA STATE OFFICE TRADE PRACTICE COMPLAINT STATISTICS - Page 2 

"NO 

ADJUSTED VIOLATION DROPPED PENDING 

35 RESALE PRICE MAINTENANCE 

Provision requiring adherence 

by customers or salesmen to: 

{l) Members' published prices 2 2 

(2) Minimum price provision~ " 4 

(3) Manufacturer's or wholesaler's 

j. 

published prices 48 19 11 

36 DISCOUNTS 

( 1) Cash 59 12 

(2) Quantity (in one order or 

shipment) 10 1 

{3) Volume (over a period of time) 20 16 4 

37 CREDIT TERMS 14 19 6 ---

38 CONTRACTS 

( 1} Nc.n-elf rcement of contracts l? 15 5 5 

{2) Failure to file with Code Authority 

contracts ante-dating, and excepted 

from, emergency price provisions 11 1 4 1 

{ 3) Adj ustment of prior contracts 21 18 3 2 

39 FALSE AND INADEQUATE AGRE~~S OR 

DOCUMENTS 108 48 _M 

40 BIDDING 

{1) Failure to file bids 432 178 121 189 

(2) Bid peddling and shopping 55 36 4 5 

(3) Collusion in bidding e .. - { 4) Other bidding practices 81 37 ? 15 

41 IMPROPER AWARDING OF BIDS 100 18 21 

9861 
Alphabetical Symbol _____ ...;,__ 

NRA STATE OFFICE TRADE PRACTICE 90YPLAINT STATISTICS - Page 3 

42 CONDI~~ONAL SALES 

(1) Consignment sales 

(2) Other condit~onal sales 

(1) Accepting returned goods 

(2) All~wances for returned goods 

44 EXCESSIVE TRADE-IN ALLOWANCE 

45 ALLOWANCES 

(1) Advertising allowances 

(2) Allowances for definite service 

46 PRICE GUARANTEES 

47 

(1) Price guarantees (definite 

prohibition) 

(2) Other provisions re price guarantee 

except guarantee of product 

PRODUCT GUARANTEES 

48 TRANSPORTATION CHARGES 

(1) Transportation charges 

(2) Basing point provisions 

49 PREMIUMS, LOTTERIES, ETC. 

(1) Giving premiums, coupons, etc. 

(2) Lotteries 

(3) Contests 

(4) Auctions 

(5) All of foregoing in one provision 

50 FREE GOODS 0~ fREE D~I,.S 

tl61 

·NO 

ADJUSTED VIOLATION DROPPED PENDING 

'78 23 7 

16 , 1 I 

8 3 __..1.___ . - ..!_ 

' 

102 88 17 

7 - 2 - -

18 a 

.1 --'--

61 30 • J 

71 15 1 

1 1 

165 10 

173 ' u 

- a I 

1t • 1 

11 3 - - 80 • 
Alphabetical ~)'mbol _____ _ 

NRA STATE OFFICE TRADE PRACTICE COMPLAINT STATISTICS - Page 4 

NO 

ADJUSTED VIOLATION DROPPED PENDING 

51 FREE SERVICE 

(1) Free service or maintenance 

(2) Inadequate deposit on equipment 99 

52 GIFTS, SUBSIDIES, FINANCIAL ASSISTANCE 9 

SHIPMENT ·REQUIREMENTS 

(1) Requirements relative to time, etc. - (2) Split-box sales at wholesale, etc . _.::..5 __ 

54 

55 

56 

57 

58 

59 

SALES ' OF SUB-STANDARD GOODS 

COMMODITY STANDARDS 

LABELING REQUIREMENTS 

(Except NRA Labels) 

DESIGN AND STYLE PIRACY 

PRODUCTION CONTROL 

(1) ~estrictions on producvive capacity 

, (2) Production quotas (a~lotments, e~c) 

(3) Inventory ~ i tatiops 

HOUR LIMITA""!0NS 

( lt Machine , plant lli>uJY limitations . 

(2) Hours of business, Distributing and 

Banking Codes 

&0 CUSTOMER CLASSIFICATION AND TRADE 

DIFFERENTIALS 

(1) Filling customer claasification,by 

class definition or name. and 

. adhering to same 

{2) Adherence to custoaer classes. or 

restrictions, established by code 

(3) Adherence to trade differentials 

(4) Li itations relative to salesmen 

61 

147 

151 

30 

17 

1 

80 

204 

' 

I 

u 

., 3 2 

9 

• 3 

1 1 1 ---

14 

67 14'1 14 ----

15 

31 13 

~-- · -

1 

10 

- 1 

6 13 

181 t 

1 - 1 

1 1 

1 1 

1 ·-
61 

62 

63 

64 

65 

66 

67 

fl61 

-21~ 

m~ J% (Cont•t) Alphabetical Symbol __________________ _ 

NRA StATE OFFICE TRACE PRACTICE COMPLAINT STATISTICS - Page 5 

' 

NO 

ADJUSTED VIOLATION tROPPED PENDING 

DISCRIMINATION AND SECRET RE6ATES 

( l )' Discrimination l::etween, buyer~ of 

same class 

(2) E·etates or discot;.nts used as a 

subterfuge 

(3) Monopolizing ar.d discriminating 

against sJI.all enterprises 

(4) Splitting fees, coJI.missions 

MARKET PROTECTION 

· (l) Direct sales in competition with 

retailer or other factor 

(2) Extra zone sales 

(3) Violation of territorial agency 

franchise 

COERCION, INTERFERENCE, FREDATORY 

COMPET .i:TION, COIV.MERCIAL BRIEERY 

MISREPRESENTATION AND DECEPTION 

( 1) Deceptive selling rr.ethocls 

(2) DeceptioQ in filli~g orders 

13) Inaccurate unde rselling claims 

ADVERTISING REGULATIONS 

(1) False , misleadiJ.g and inaccurate 

advertising or stateJI.ents 

(2) Inaccurate adver tising and defau:ation of competi tor 

(3) Advertising r€gulations in the Retail 

Trade and Retail Food and Grocery 

Codes 

(4) Restric tions on cert ain t ypes of 

advertising 

FAILURE TO PAY CODE ASSES~ NTS 

REGISTRATION 

(l) Registration with Code Au thority 

92 

265 

17 

30 

11 

304 

108 

38 

!i01 

79 

1,285 

(2) Failure to register· t rucks, buses, etc ._703 ___ _ 

(3) Failure to registe r new construction 

(4 ) Failu~~Qeegister production, 

or productive equipment 

16 

-

85 

31 

1 

21 

179 

35 

12 

216 

59 

10& 

172 

146 

2 

-

19 

42 --

1 

17 

17 

112 

7 

408 ' 

-

2 

-

1 

2 

-

I 

u 

179 

19 

11t 

16 

-
-.21~ 

WLI lX ( Cont •t) 

Alphabetical Symbol ________________ ___ 

NRA STATE OFFICE TRADE PRACTICE COMPLAINT STATISTICS - Page 6 

NO 

ADJUSTED VIOLATION DROPPED PENDING 

68 

69 

70 

7l 

72 

NRA LABELS AND NRA INSIGNIA 

(1) F~ilure to use labels or i nsi gni a 

(2) Provision governing retai l sale of 

manufactured product requiri ng NRA 

l abel 

(3) Imp roper use of l abels or i nsignia 

(4) Code members pur chasi ng from firms 

not displaying insi gnia 

(5) Sales to code violators 

ADMINISTRATIVE 

(1 ) Investigation costs 

(2 ) Access to r ecords 

L3~ General administrative 

~ •J foti~l ft~t~&.ring boardsLICENSE - ADDRESSES 

(1 ) Working without license 

(2 ) Failure to establish busi ness address 

617 

31 

13 

8 

11 

6 

28 

2 

57 

57 

(3) Permitting loan or t ransfer of license --~1~1~-

CERTIFICATE OF COMPLI ANCE 

(1) Failure t o file, or filing false 

certificate - Gove rnmen t Contracts 

(2) Failure to file cert i fi cate on 

demand of Code Aut hori ty 

MISCELLANEOUS 

(1 ) No code provision applicable 

( 2) Failure to comply with Workmen 's 

Compensation Laws 

(3) Prison made goods 

3 

11 

17 

12 

1 

333 

10 

1 

5 

6 

5 

18 

1 

10 

28 

8 

4 

1 

53 

15 

1 

255 

5 

5 

10 

5 

11 

21 

3 

5 

24 

2 

..---

(4) Lumping or subl etting .labor 40 18 1 

(5) Sell ing \ 11• unset, etc. 3 2 

(6) lol1cU1D& 15 dan &fter dea\h 

(1eia11 Monument Code) 13 16 • 

(7) !loc.lo-)ookiy (Motioa Picture) 10 1 

(8) llating or loaning Kfg. 8p&.Ce to 

aaother Kfr. (~recioua J .. elry Pro~cing)--- 4 

Iot reported 1 1 1 

!/ the officet were officially actiTe from October,l9,1933, to 

Prepared by : Kay 27.._ 1935. 

Statistical Section, on , National Recove ry Administrati o·o 

Date JINocla. 6. 1936 _ _ _ _ 

tMl TC 

11 

1 

1 

9 

15 

3 

3 

1 

1 

-

20 

-1 
--- -22QTABLI XX- :B 

BRA STATE OFFICI COUPLAillTS STATIS'.riCS 

TWentt-five Codes with G~eatest Number of Trade Practice 

Complaints, October, 1933 - Jlar• 1935 

lame of Code Total 

!l-ucking Industry 2995 

Construction (Total)· 2151 

Retail Jood & Grocery 2601 

Retail Trade (Total) 2547 

Retail Solid Fuel 1700 

Wholesale or Distr i buting Trade 1318 

Kerchan t &s Custom 

Tailoring 1178 

Graphic .Arts Ind. (Total) 1106 

:Baking Industry 1096 

Retail Monument 

Ice Industry 

Retail Rubber Tire & 

:Battery 

Cleaning & Dyeing Trade 

Wheat l'1our Milling 

Builder's Sapplies Tr. 

Retail Lumber, etc. 

Electrical Manufacturing 

(Total) -

Shoe Rebuilding 

Motor Vehicle Retaili ng 

Household Goods & Stor. 

Photographic & Photo -

Finishing 

Canvas Goods 

UOtor Vehicle Storage 

and Parking Trade 

Retail Tobacco Trade 

Merchandise Warehousing 

Prepared b;y: 

Statistical Section, 

Field Division, NRA, 

March 20. 1936 

9861 

895 

772 

770 

666 

536 

525 

494 

477 

459 

444 

_434 

416 

395 

375 

371 

369 

AdJusted llo Vioiation 

1'676 471 

1463 757 

1599 641 

1628 515 

962 354 

803 280 

473 278 

391 233 

748 106 

573 203 

499 136-

-

364 369 

321 99 

67 145 

303 9? 

279 81 

228 51 

79 235 

172 141 

265 50 

2'70 115 

219 118 

154 40 

•261 58 

217 117 

Dropped 

559 

285 

302 

~ 

259 

110 

210 

330 - 127 

75 

131: -

29 

2M 

2 

62 

- 113 

47 

145 

97 

118 

3) 

58 

181 

15 

27 

PendiDg 

289-

450 

59 

82 

125 

125 

217 

152 

. 115 

44 

6 

8 

~-

322 

63 

21 

151 

-

28 

1 

'11 

-

-

3? 

8 
')1-

to be , ctnn:iLN'. ·u,. r.:·fl rc .·· cc """"~ · 1.·:.:..1' ' !1 :"' . .t~1 o·1 'Jf C')"t ".ccountL1..; 

(.0~1 r--ll;r f u.:1C: i.. ,nau: t ··rL1 .. n' JJ.·c.· i1'1n ·" ictri v1.ti·1'~ cr)'cr) C!n: 

rt" ·u ~ti::m.., cc~ui· L1 ·; :- iniJiUJ• 1tr1-:-FD ""'~•' t. to~ l l•.c'"l.t i oa of 'J. ft-..t.i.sticn.l no···c -1:; ) ix ) iC "' . t~ --r .:'i xc..:'.. J iccr. L1 ·n t,l<. im' 1.n t·. y ( L:'Crall y l~co-u.:;.tei('). i :• ~..'. istri '1' ti .. C'J ·C· ) • • ~.,:ca·l:. C' 0f t:1c COJ"''l]J}.vxity of 

s-, ti l"' ~6 o:r t .·.c 0-I 1)}1ic .~~J. t C::>c c 'l.'lt~ :.1. l :·1·. <.: ·;o lu.tc ')f ce"'e ari"i!1G 

under it , a se!)D.r te .la sific·.1.tiJn lA."' c t~.bli'1 lc<.~ io:. ~1 s ··w'Jvi:Ji')n • 

. miccbllc-nr •us .. 1'UUi! of 1'2 .... u1·· ti ons us·.J.c-:1 1 · u ' SLJC ) ll ~1c rcquirer.lont 

~J.1at rn c t:.bli ~r1en t l'T'::tintai :a Qlh? <>art ~. C.>.)~tin t: :rs em was as ic;ne cl 

-to a t-e:.•ara te sub- cla siiicnti on, nm1bc r c d (1 ) U11C.er t ' lt.: headins 11 Sa l es 

·oe l ovl C· "' t", a l thou_). t:1cre i some v~.. rlG:·• VTi t h the first classifice -

t . ' t l , ..:J • l.On UJF•. e r .. :e 110al'.l. nCJ . 

(3) In a fe, ~; cn.se s , vi o l ati ons wc:,·c I'C!))rteC .. Jf sev e r al provi si ons 

(~.;elint., ith ~e sar.10 su bjec t r.r:.c: c l assi f i ec Ul1C."'r s"'..!ne :,ene r n l hea.c'' .. i nc 

i n the claosifi cati 0n s:.'"' t cm use~, . For r:ecn;micn. l r c..aS 'j:1c , i t wac impoc""ib l e to list 1.1 0r 0 L1a11 ona of ~1ese v i o l c-2t i o!1 s , a;,v~ in such Cc? SC:;S 

t! e 'J'io l ation VlcS · ssi .;_.:ncc:. t o t :;.e mo:ot i TID)':1'. t ".n t s ub- c l assi f i cntion , 

U311"'<, "ll " v S .. :" fl.' r s t U·'~ ·1C .. C':" _ +: v .. e '

1 1e C:~ "t', l' 1. L r • 

'-. .riotBs on cl .ssifi c~t o:c1s • .__ __ . ___ - -- - --- .... ___ - -----

A. fu.rt ne r n')tc or... t :1e t y-pes of r·ro7isi ons il:c luclad und e r c ert Stin 

:1ee.c i n.::;s .ia~ T be :Y' l p fu.l il1 t he· examina ti on of L cse t a bles. The f ollowinc c l a s.s i fi cati oEs seem t ') r o ouirc ad.c~i t i Qnal eA.-p l anati on: 

Contr ac ts 

Sub - c l a c s (l) , i

1Hon- enf::>rcenoi.'1t of co;.1t rac t s 11 , i ncl ude s p r ovisi ons 

den,linc, . .v i th the fo llowinc: ) r A.c tices : 

DcpartuTc fr'j;:1 ec~ i t t e:c:·1 s Di c o::trC',c t 

Set t l enont of olJ. ac c ounts ·iJ e l ovv :ull va lue 

Pe r rni t t i r ,_ " i ::ror01')E'r ' . .: r'.E::C.r:.c t i on.s w~ ..:;:-: bu:r-' e r l~ern it s 

Pe r mi ttir1c b uy,:r 1 s canc e lln.tiJ n or r c:o'J.cli:c t i ')11 

S1.lDS ti tu.:ti~ l_; h i 610r quality Or q_ 'J.E"n ti t~ T ~~O ClS 

E:x:t en<iL1:_: 'Jr cxc ecc-;.i !.:c c'"lntract 

~o tr oact iv e settlemen ts 

l c:.lse a .r!d I n<?/.em..l..at c A::r eer:1ent s e> r Documo:.1 t s 

This class ifi ~Y 1 nc J.c~e s 2.1 1 }nov isi ons wnose ')bjec t i s ' by 

posi t i·;e equir r.~o11 s ~r by prohi .b i t i ons , t 'J i :1sure 2. f'J.ll anrl C')mp l ote , a ccu.r a.t e e> r it emi zed r e c or c'. of eac~1 s a lt) or t:::El.:nsac ti on, :1n d. t he 

f 0 rm ::>f snc!1 r: C.s ~ 

9861 

Conciti onal Sal e s 

Sub- class (2) 1c uc~es prJvi " i 0ns l:;~nre··ni:L:::_:; t :ne fo llovi n.:; rr: ac ti ces : 

,Sa l es subject t o t ria l ::> r c.~"- l 

__ epurc~ase a~ ec r:1 eJ.1 s 

Shi pment s without orc e r (ri'r :J.}!sit Stock , e t c . ) 

Star n~ o~" wi t h custome r 

Resal e Guaran tee 

Ab r eements L1 whic!1 bu y e r i s not b') und. 

Exchan bing me rchandise 

Re n tinG or l easing 1du~ J ;Jroclnc t s 
----~ 

- 222-

All owa:{)_ces 

Sub-class (1) i ncl u d.e s 2.ll --.rovi s i ons :p r ahi b i t inc; or r ccuJ-a ting 

in c~ Y way t J.1e }JB.J'T.1en t f :H vort i ill ~ s Gr v i ce n:mc ed. by cus tame r. 

Sub- cla ss (2 ) i nc l udes regulati o:}s ; f . a llowa:.1ces f Jr a ny :>ther 

G.e fi n i t (; s e rvice or va lue r en(el·ecl. y a customer, except trac.e-ins or 

a C:.v e rtisi ng . (Th i s he adi nG was not used. for discrimi tatCJry a l l owances 

a:::1d r eb 2.t e s , which we re inclut_ecl Ul1C~er 11 Discrimina ti oi1 and.. Se cret Rebates 11 ) 

Sub-class (l ) i ncluC.es only .c_efi :tlit-:- ·0r ohibitio:as o: ~~~rice b1JB.ra nt ees 2.s sue}+ . 

. Sub-clcL SS (2 ) includes o the r s i mila :c ::>:covis i CJns c iJ·rc;rL1C o~ _. tio:.1s, 

contracts f or ·deferred C. e live r y wi tJ:-1 .:_,uar'Y:l teec_ p rice, :)l~ ic e a ,3 reen ents 

i nclefL1ite a s t J tiine 0r qua 1t it ~r of .::;ood.s , a1~.:::. r ela ted subjects. 

Proc_,_,_c t Guar.an t e e s 

T:1is classificat.i ::m L: cludes .1 ···r ovis i o11 s :J ro~1ibitint; , or 

re:;ula tin.; L1 a ny we.y , t he g ivinc of :_;un r cm t ees on p roduc t s , i.e. 

devi a t i o11 fr an stanc~a c".. g"U8.r 2.n t ees set f a rtn L1 coc e, or violation of 

provision p r olli-bitL-le; ce· tai:;:1 k inds of c;w..r a :.1 t ees (maint e:;.lance , etc . ) . 

Sub-class· (l) app lies t :J all ;Jrovisions al l oc.c:ttL1g or et.,ul :: tin.::~ 

tre.::.1S)Ortc:.tion c:urc es in any way , such as :-=' r CJ visiCJr"is requirL1c an :J' . O.B., 

o r C::~e ivery ·basis of s e llinc:; , :·1repa;yne:;.1t 0f fr c;~1t ~a c;es. : rol.1i biti eJ ns 

of trans1)Jrt o..ti on a llowai.1Ces, etc . 

Fr ~e o~s or Free Deals 

~n. s classification :ms been used. to c over a ll u r ov i s i ons re c~'Ulating 

t he : ,i 7in.:; of f ree c ooc"..s , L1c l uclinc; sucl1 i t erns a s sp ecia l c :mta i11e rs or 

e quipment , free in str~· l?rod.ucts, ac~ rtisLl~ a nd dis la~r TJR terials, 

&Jn~) , e tc. 

Fre e Service 

Uncle r sub-class (1) hav e beel1 i ncluded v i ola tions of T) r ovisi ons 

reC;ula tinc; t l1e c;ivil1c; of sal e s he ~r) a:.1c':. C: monstr ti or~s, p l a ns and dr a wing s, r epair ancl no.inteuance, warehous i ng ancl st or at;e, etc. 

Gi f ts , ,.$"L'..b sic"..ies, FL1a ncial Assi sta :1ce 

1is ~le a c_ i:i.~ L_~ incluc:.es a ll :vrCl7isi ons p r oh i b i tin[' o r r G{;Ula ting in 

a n y ~r C'Ji.1Ce ssi on s r enc o r e d. a buye r t l1rouc;n fL._a nc i al a ssist ance or 

fav ors, i. e . c i f ts, e:.lt e rt8 L1l::ents, pa3Tfl1ent of GXiJenses, etc . 

All nro7isi ons rel ti 3G t o time, ne thod, or size of sni pment are 

9861 
covcr "c: y- "U - cla " (1) , inclu :L1._; s. l it <liP1K nt , hi ntc ,cl0w <' 

"~CCifj_ ..,; c~ : i ·liJnt"L"'P , t'cf rr cc: l.i.v ry , c tc . 

Sal e" f ---~ ct d~ ~ G ods 

UnC:cr t i" llCac''in1_; lr .v e b en inc~ud-;ct onl l'J ..;. ~.; jJ r' O ·ision impo"' i n._; rc ·.u L:t;i..m on t h::; sa.:e Jf' ot:1c r t •1an 1CV! , unu cd , fir " t c l ass 

"' Jc~uct , f o _ t -1 r ot e ct i o!1 of L1e c onsur:!cr . Provis i ::ms fo r quality 

r eql..lir·-·IJe:!'l ts in L w i:1i t i al m.:l a uf,.,c t ure :) f . tHe ·· roc~. ct 1.rc n ot i nc l uC::.c d , 

n ::>r '1 c y _,_Hovi ..,i ::> .s r .:; l a tiv · t J price or co st . T'.1e 1ead ing c overs 

cl, . a_:;ec: :_;·J'J C~. , co.:lls , us ee g.)0ds , ~ mo .1str2.t or " , cli sc ::mti nucd l ir..cs , 

e tc . 

A~ l ; r ov i si on s cs ~hi:1C '-.ei init e s t :li r • .:~ r:l s i ·1 ~1.e u2 nufa.cture 

of a :Jroduct , pJ~ iv c 0r ·1e.=;a tiv c L1 1~ ct cr , a r c L1clurlecl he r e , i . e . 

st "tnC.ar ci.s 0f qual i t ;y , quantity , .:_· l· , i :.:cc:redi cnt , etc . 

Labe l .rtc quir cDent s 

This he a cUnt; ~.;; r 

r e l a tive t o (es crip tive , 

t i on of t he con ~e , i. 

qunlity , quanti t y , .,rad.e 

l aoelling . 

;i&.r t :e t Prote c t i o11 

vi si oilS , "~ l "Gl ve or n e, .:J.ti ·1e i n c'1El.!\:'.ct e r, 

accura t e l a-be l ling r e qui l"emon t s , f or t h e L1for mae , :po s i t i v e re quiremen t s in l abe lling as t o 

or inc r edient, or pro~ibit on s of ~e ep e 

T:1e sub- cla ssifi ca ti o!l c11t itled "Ex tra Zoi1e Se.le s 11 i nc l ude s a ntic' ump i -1(. )r ovisi on s . 

:1 ~ e r sub- c l a "' s ( ) l1avc been i nc .u ed ·r i s i on con tai nint; 

pry· i tive rs stri cti ons on sy e c i fic k i ncls of ac rtl , n s t in t hems olve s ina.ccura t e or J"l isl cc ~; , such as 1.e u se of ;. e wor e.. 11 fr e e 11 , or 

t he aG..7 e rt i si 1G; of fixed d. ovm ) ayne n t a11cl. weekl y paymen t s wi thout r e::;a rc1. 

t o }J r i c e , e t c • 

9861 

luaber et -wle7••• 

1a 11DUI of ohai.Jl1 

.at oombiDation• 

fetal 

.... le,.... 

Oao -.lo,.e 

1-5 -wle7 ... '-10 • 

11-!5 • 

a..,o • 

51-110 • 101-~ • 

251-501 • 

501-1000 • 

1001-5000 • 

O"fer 5000 • •t r•rtd 

mx.- m 

DA. SU9 OJ'J'IO. CoKPi.Ain S~ISTI'OI 

IIZI o:r :IS!ABLISIDIII!, - . ClW*I .urD CODilW'IOJJS 

~ PruUoo · 0...••· • !oW of ftre~ eel lboceaai"fe- Oemplatnh 

••t.a\ lleapedc'•• • !eW of all Ott1cea, -OoteN~', 1933- Jlq, 1935 a/ 

Total 

!e\al aamber of A4,Juetecl • Vlelation Dropped 

•• ~bliehmaah 

.,~ 381 5:52 222 30 

2 2 1 1 

179 95 111 61 

133 ~ ~ ,~ 35 .72 51 17 2 

30 21 19 8 2 

53 ~ 33 11 2 

21 11 18 2 1 

23 12 14 7 2 

lS 1 16 2 - 17 2 16 1 - 246 122 -

16o 70 13 

a/ !be eU1oe• were oft1c1all7 actl ve :trem Ootolter 19, 1933, to Mq ZT, 1935• • 

Pr..,.rect 'b7t 

Statlet1oal 8eo~1oa 

Jlelt DlTlelea, D1 

lfuooh 12, 1,,, 

Pendinc 

10 

~ ~ t 

2 

1 

-

-

-

3 
• 
ftate Office Serle• 

-225-

wa mi 

J.J..J.. S!J.D omo1 COMPL.U ' e.rm mea 

8)llBCJ 

!rade Practice Code Caae1, !otal of all Of:ticea, October, 1933 - Jlq, 1935 A/ 

1fo 

lwroe of Complaint a !otal Cases j,c)Juated Vlol at1on !lropped ?end!Jig 

All IIOU!'Oel 36,-4.26 19,674 8,094 5,295 3,362 

.boJIIIIOUI 2'14 lS> 7-1 "' 6 

-.plo,ee (status unlmon.) 142 50 35 57~ 

Pre1ent .aplo;ree 62 29 19 - ' 8 

~rmer •p1o;ree '11 14 48 5 4 

Campetltor 7,912 -&,172 2,396 1,187 151 

Office staff 1,267 710 313 62 182 

Code authorit7 23,756 13,112 4,305 3,408 2,931 

State agen07 140 80 23 30 '1 

Oov• t purchasiDg ageney 12 8 2 1 1 

Labor union 162 67 71 12 2 

!r&de aaaociation 1,282 627 366 256 33 

Other sources 1,1M 584 421 125 ?A 

Source UDlmOli'Zl 201 71 21 102 7 

.J !he offices were of1'icia.l17 active from October 19, 1933, to Hq 21, 1135. 

Prepared b;rt 

Statistical Section, 

Jleld Division, I1U. 

Karch 3, 1936 

9861 
State Office. S.eries 

N.R.A. STATE OFFICE COMPLAINT STATIST~OS 

METHOD OF CLOSING 

Trade Practice Code Cases, Total. of all Office~, October, 1955 - ·May, 19!5 . !1. 

Total Adjusted 1!52 Viola:Y:on 

Method of Closing Cases Percentages Cases Perc,entages Cases ' ·Percentages 

Total of all methods 27' 768 100 19,674 100 8,094 ·1oo 

·Correspondence 14,079 50.7 9,465 48.2 4,614 57. 

Field Adjuster 6,407 25.1 4-,509 21.9 2,098 25.9 

Office Conference 5,765 20.7 4,627 25.5 1,156 -14. 

S'tate or Local Adjustment Board 76 .5 50 .2 26 .!5 

Code Authority 1,164 4.2 1,021 5.2 145 1.8 

State Agency {Dept. of 

Labor,. etc.) 91 .5 80 ... 4 11 .2 

Court -suit instigated 

by complainant 4 .a 5 .• o 1 .o 

Unknown 184 .7 119 .6 65 .8 

-- - . -

~ Offices were officially active from October 19, 1955 to l&ay 27, 1955 

·, \ Prepared by: \ 

Statistical Section 

Field Division, N.R.A. 

February 12, 1956 ' 

9861 

T 

' 

i 

l 
8 te ottice series 

-22:7-

N. R. A. STATE OFFICE COMPL.UNT STATISTICS 

Time Elapsed between Docketing $nd First •ction 

Tra4• Practice Co4e caeea - TOtal ot all ott1cea, - october, 1933- ~,1935 ~ 

Da7• elapsed 

between doeketing 

and tirat action 

~tal 

J.Ction on flay 

ot receipt 

14!.7 

2 da.ya 

3 aa,.. 

4 claya 

5-'1 days 

8-10 de.ya 

ll-14 tlaya 

15-26 days 

over 28 days 

Ro action 

Not orted 

TOtal 

36,42:5 

4,496 

8,751 

4,142 

3,080 

2,3'/S 

5,411 

2,591 

2,066 

1,818 

946 

32 

'114 

Adjusted 

19,674 

2,398 

4,983 

2,355 

1,613 

1,289 

2,962 

1,435 

1,128 

932 

465 

1 

113 

No 

Violation 

8,094 

1,292 

1,522 

'/6'1 

666 

564 

1,225 

655 

510 

458 

298 

1 

13& 

Dropped 

5,295 

480 

1,7'14 

624 

390 

311 

'106 

2'/8 

199 

162 

104 

1 

266 

!( The ottices were officially actiTe t ram october 19, 1933 to May 27, 1935. 

prepared by: 

statistical section 

Field Division, N. R· A· 

March 4, 1936 

9861 

Pending 

3,362 

326 

4'12 

396 

4J.l 

214 

518 

223 

229 

265 

'/9 

29 

199 
State Office Series 

-228-

!A'BLI :a 

ll.R.J.. ST.A.'l'E OFFICI COMPL.!I!lT STATISTICS 

Tid ELAPSED BETWEEN FIRST ACTIO! .AND CLOSIIG 

Trade Practice Code ·cases, Total of all Offices, Octob~r, 1933 - Kq, 1935 .tJ 

Time el~sed between 

first action and 

closiDg 

Total 

Closed on dq of 

. receipt 

1-6 dqs 

7-13 dqs 

14-a:> ~s 

21-30 dqs 

31-45 dqs 

46-90 days 

91-182 dqs 

6-12 months 

13-18 months 

Over 18 months 

llot reported 

Total 

33,063 

996 

7,019 

6,161 

4,323 

4,231 

3,552 

4,444 

1,743 

336 

36 

222 

AdJusted 

19,674 

537 

4,631 

4,117 

2,645 

2,461 

1,950 

2,375 

783 

131 

3 

4l 

No 

Violation 

8,094 

340 

-1,603 

1,405 

1,059 

1,157 

909 

1,103 

376 

80 

2 

60 

llropped 

5,295 

119 

785 

639 

619 

613 

693 

966 

584 

135 

31 

121 

.J !he offices were officially- active from October 19, 1933, to Mq 27, 1935. 

Prepared by-: 

Statistical Section, 

Field Division, NB.1 

March 3, 1936 

9861 
PBA Ser1 .. UBLJ: I - PBA 

CD 

~ B.R.J.. ST.U:I OJTICI OOWPL!IliT STATISTICS 

(]':1 

..... Total hlnber of Cuea under the Prea1dent1 a Jiaemplo;rment jgreement, October,l933-llq,l935 y 

Officea ~o~ ~Mea 11ra~ IC!lllml!!!!~l Ka~l!!~ rellii2U•n~a 

liT l!ro !lo 

!legion Total J.dJu.ated . Violation Dropped Pen diD& !otal Adjuated Violation Dropped Pending 

lf''O tal all off1 cea 12,368 ~.370 6,430 806 762 11,004 3. 753 5.776 731 7~ 

To , !legion 1 122 31 go 5 106 31 70 5 

M ne 28 22 23 5 18 ew Eampsbire 

trermont 

llauac!buaetta 4 4 3 3 

Bhode Island 37 10 !16 1 ~ 8 23 1 

Connecticut 53 21 28 4 18 26 4 

total, Jt.egion 2 &,221 2,330 3.583 235 73 5.356 1,914 3.171 203 68 

jlb&DT, J.T. 49 12 29 8 46 11 27 8 

!Qtfalo, I. T. 81 22 56 2 l 81 22 56 2 l 

Jew York, !l.T. 6,091 2,296 3.498 225 72 5.229 1,881 .3,088 193 67 

!otal, !legion 3 - f'c 717 85. 521 78 33 7o4 78 517 76 33 

In Jerae7 17 7 10 11 2 Pb11~lph1a,Pa. 46o ~ 41 377 19 23 4,7 ~1 37~ 19 23 N 

Pi ttebl:lrgh,Pa. 147 18· 87 39 3 1 7 18 87 39 3 N 

Delurare 38 2 16 20 35 1 16 18 e.o 

lllar7land 3 2 l 2 1 1 . 

J)iat.of Col. 6 3 3 6 3 3 

firginia 

J~rth Carolina l.t.' .!) 12 27 7 46 12 27 7 

!o~, !legion ~ 245 72 85 70 18 228 64 83 63 18 Sou~ Carolina 22 7 5 10 13 ,, 8 

Georgia 81 30 35 9 7 IJ 29 9 7 

J'l.or1d& 71 21. 11 28 11 21. 11 26 ll !enne•••• 19 3 1 15 18 3 1 1~ 

jlabema 28 5 15 8 25 5 1~ 6 .IUuiaaippi 24 6 18 2~ 6 18 

J.ouialana 

!e tal, hgion 5 lto4 168 l6o 45 31 323 119 144 29 31 

Michigan 27~ 114 126 17 17 273 113 126 17 17 

Ohio 91 51 19 16 5 13 5 3 5 

laat T1rs1n1& 1 1 l 1 

In~ 38 2 15 12 9 36 15 12 9 

!otal., Region 6 1,265 491 ,~ 220 49 1,261 491 ,2 21.9 49 

liaoonaln 132 2~ 7 41 131 24 59 7 41 

I ndiana 1,084 450 423 203 8 1,083 450 ~ 203 8 

Illlnoh 2 1 l 1 1 

Ml .. 0'1Lr1 47 17 21. 9 ~ 17 20 9 
co 

<X' 

a:-

~ 

-2-

PJU. Series 'UBLEI-PJU. 

I.R • .A.. S~ OFFICE COMPLJIIT STJliSTICS 

'Rotal llulnber of Cases under the President' a Reemp1o;yment J&reement~ October,1933-Yq ,1935 §/ 

Offices fo tl!:l cases J'i rs t CO!!!Illain ts y;ains t resl!onden ts 

b7 !To lfo 

Region Total AdJusted Violation Dropped Pending Total .Adjusted Tiolation Dropped Jlen~ng 

Total, Region 7 1,182 374 307 

)Iinne so ta i~ 80 63 

Iowa . 39 55 

lforth Dakota 19 1 8 

South Dakota ~ 18 32 

lfebraaka 334 176 137 

Xansas 491 34 10 

W,-om1ng 16 16 

Colorado 15 10 2 

Total, Region 8 538 206 215 

.lrkansas 5 1 3 

Oklahoma 161 37 61 

Dallas, !exaa 135 55 56 

Bous ton, !exaa 237 113 95 

Hew Mexico ----.,.. 

Total, Region 9 l,Eq4 6o7 974 

Yon taD& 30 16 14 

Idaho 20 6 14 

t7tah 23 8 11 

Heva4& 1 1 

.uizona• 4 2 1 

Waahillgton 975 ' 320 6os 

Oregon 109 37 &1 

Loa ~1ea,Calif. 313 157 14o 

San lrancisco,Calif. 199 '6o 125 

!I !be offices were officiall7 active !rom Octo~r 19. 

caaea accep-.d prior \o Oo\eber 19. 193:h 

' Prepared..,, 

l\&t1Bt1cal Section, 

J1e1d Dt.Tlli<one l.ll.A. 

Jebraar7 a)• 1936. 

1933. 

23 478 1,107 335 279 20 473 

5 5 148 78 62 3 5 

5 5 101 37 55 4 5 

10 19 1 8 10 

31 5 26 

2l 286 154 116 16 

1 446 491 34 10 1 446 

16 16 

2 1 15 10 2 2 1 

68 49 ~9 194 207 64 44 

1 5 1 1 

24 39 137 29 20 34 

24 -- g~ 53 24 

20 9 111 94 20 9-

67 26 1,410 527 803 57 23 l\:) 

CA:) 

27 14 i~ 0 

20- 6 

1 3 22 7 11 1 3 

1 1 

l 4 2 1 1 

44 3 134 2jl 450 34 3 

5 6 103 59 5 

2 14 311 157 138 2 1~ 14 188 57 117 14 

to Y.;r 27. 1935. Iao111.ded are 1,686 a4Juate4, 2279 ao !io1ation, 1,2 4J'oppe4 aa4 'pea41Dc 
PR.A. SIRlES 

TABLE XIII 

BR1 STATE OFFICI OOMPLAlNT ST~ISTICS 

VIOLATIONS OJ THE PRESIDENT' S REEMPLOYUENT .AGREEl.!ENT 

!otal of all Offices, October, 1933 - Yay, 1935 ~ 

Total Adjusted Dropped Pending 

Total lumber of Cases 5,933 4,365 806 762 

!otal Bamber of Violations 9,921 7,564 1,3~3 1,004 

Total Hour Violations 4,765 3,795 684 286 

Total Wage Violations 5,012 3,644 654 714 

Total General Violations 144 125 15 4 

jJ The offices were officially active from October 19, 1933, to May 27, 1935. 

Included are 1,683 adjusted, 192 dropped and 6 pending cases accepted prior 

to October 19, 1933. 

Prepared b7: 

Statistical Section 

Yield Division, IRA 

Karch 19,1936 

9861 
State Office Series 

TABLE X 

BRA STATE OFFICE COMPLAINT ~A1'ISTICS 

AMOUNT OF REg!'ITUXION AND Nt:Jt.mER OF WPIDIUS PAID 

Cases under President's Re~loyment Agreement, Total of all 

Offices, October, 1933 -- May, 1935 

Number of Cases 

Amount (lbllars) 

Employees 

Prepared by: 

Statistical Section, 

Field Division, NIU. 

March 13, 1936 

9861 

4370 

204,184.01 

7497 
Sta istical Summar.y of the 

Activit;r of the Compliance 

D v sion 

!DLI mT 

SUMMARY, NRA COMPLIANCE DIVISION 

AND REGIONAL OFFICE CASES 

November 11, 1933 - Ma;r 27, 1935 !/ 

NRA On 

Complaints 

Complaints closed b,y 

Docketed administrative action 

Complaints 

referred to 

Litigation 

Insignia Hand 

Removed May 25,1935 

TOTAL 7,136 3,634 1,435 1,795 2,067 

Labor Co~ints 3,673 1,810 657 916 1,206 

Trade Complaints 2,950 1,574 603 692 773 

Labor & Trade Practice 

Complaint s against 

sarae respondent 513 250 175 187 88 

!/ This is a report of cases r eferred b,y HRA State Offices or by the Code Authorities 

to the Compliance Divi sion in Washington, or after Januar.y 1, 1935 to the Regional 

Offices to special administrative action. These totals were compiled from the card 

!lee of the Control Sect ion of he Compliance Division in Washington, and from dail;r 

reports submitted by the 9 Regional Offices. 

Prepared b,y: 

Statietieal Section 

Field Division, NRA 

Jucy 23, 1935 

9861 
Statistical Suamary of 

the activity of the 

Compliance Division 

-234-

IRA. ,STATE OFFICE COMPLAINT ST.ATISTICS 

Uninvestigated Comp~aints pending-"Kay 27, 1935 ~ 

Labor 'l'rade Praeti ce 

Total all offices 4, 515 ,.- 552 

Total, Region 1 332 51 

Maine 35 3 

lf ew Rampsbi re 17 . 5 

Vermont 1 2 

Kaasachusetts 68 32 

Bhode Island 65 

Connecticut 146 9 

Total, Region 2 1,435 34 

Albany, N.Y. 132 5 

l3uf'falo, N.Y. 45 10 

New York, N.Y. 1,258: 19 

To tal, Region 3 365 231 

Jew Jersey v 129 15 

Philadelphia, Pa. 69 

Pit tsburgb., Pa. 110 -- Delaware 2 .. 1 

Maryland 110 . 130 

District of Columbia 5 -- Virginia 9 ' - ·16 

Borth Carolina -- ~otal, Region 4 339 16 

South Carolina -19 2 

Georgia - - - - Florida 46 3 

Tennessee 9 - Alabama 39 6 

Mississippi 100 -- Louisiana 126 5 

9861 
-235-

WLI XlT (C t• ) 

IR! S!ATE OFFICE COMPLAINT STATISTICS 

inTeatigated Complaints Pending Yay 27 • 1935 !l 

Labor Trade Practice 

total, Region 5 -623 44 

Michigan 260 9 

Ohio 353 M 

fest Virgi ia 10 1 

Xentuclcy -

fotal, Region 6 279 66 

fiaeonsin 24 2 

Indiana 15 5 

Illi ois 35 42 

Missouri 205 17 

Total, Region 7 110 6 

Minnesota 3 

Iowa - Jorth Dakota 16 - South Dakota 16 

Jebra.ska 

Kansas 1 

Wyoming 1 

Colorado 77 2 

Total, Region 8 360 18 

.irka.nsa 7 

Oklahoma 46 3 

Dallas, Texas 138 6 

Houston, Texas 163 

llew Mexico 13 2 

9861 
!OLI · 1D (Coat •t) 

D.A. STATE OFFICE COMPLAINT STATISTI_O$ 

Uninvestigated Complaints Pending Yay 27, 1935 !:/ \ 

Labor'· Trade 'Praetiee 

To tal, Regl.on 9 672 - 86 

llontana 1 1 

Idaho 5 

Utah 15 - levada 21 8 

Arizona 2 

I ashington 122 31 

Oregon 134 5. 

Los Angeles, Calif. 62 28 

San.Frsnctaco, Calif. 315 8 

Inatructions for the analysis of BRl State office cases, July 10, 1935, · provided that cases which had not been investigated sufficiently to 

ascertain whether a. violation existed, or to determine the amount du., 

were to be excluded from the analysis. !he number of univestigated 

case a pfltn~~g op._ MaY . 27 • .1935, but not analyzed, .was report~d by 1 Z... 

offices. In other cases, the figure waa cOmputed by suhtr&cti~g the 

number of analyzed cases reported as pending, from the total number 

shown Qn hand May 27, 1935, in the report of that date. 

9861 

Prepared by: 

Statistical Section, 

Field Division, N.R.A. 

Ya.rch 4, 1936. 
S861 

- 238-

r;:'e.bles -~ -J':·i: ... ::_ violf'tions cf co · as ::- :·e .:.:o-.... l· ··c. .. :.nto three seri es, 

11 Tne St "'·t;o ~f:' ice Sc:'ies 11 , r; 11o-·L'.;: i: .:.~on.:e tion o:t·o ~:JE C.o.:n by o f:ico 

c: lir~ _; LlG cor~ le r ... t , 11 Ti.! .. " Co c : St?~-·i es 11 , ·:,:th ite·:1s 1):- coC.c , 2-:.c'. 

t!1e 11 Sp c ci<'. Sc::..·i ·; r. 11 SJ.'lO :'i 2!.._ i:.lte :..Te :Let e;C. :..e. ~ol'S bP.s e •'. o:1 coubined ~-

CX")C i cncc o:·' s~. ctcG. ~:::.·ol..l..·_, o:!.' cf~ices . , .. i thL:. L :.-" se ; :..·ou_J s e.re 

se:_) e:t·-. to ~o' s o:.. f i : ·,_::·es .~..or l £"bol' !'.." :::_ J.: Gl' t r2.:c; ·":..'2.ctive com "~lE ints . 

There i s ::- n e _'_,-_ i tio: 2.1 __; ro·u.--, of te.bl e s sl C':'i:.:-,_ ~ violt:.t i or.f: o f the Fre sic'.cn t 1 s Re c,:.:: lo:-'l·.:e·_,_ t A· :;:eeL1en t . 

Tables s __ o,--Lv t:1e s2.w0 t-~:> c of :.niol-_ .. t? ti ol·, fo::.· l 2.bor a:1c'. trei e u 

p:re.. ctice ce.ses i;£.-.Je boe:1 iv e~1 tr~ se.r.·,e r:.·•Juber· . I:<l•:.i c?.ti oll e.s to v/r1 t~: :· 

taol e s cove:· l ?. o:· o.;: tre -:.<3, e.n~' e.l"j•::.:::. t e:. , ~. o :io::..!'_" t:. o;l, C:to1'J--)e.:,_ or 

:)anc'. in~ ce.s e;: is i '.l'nishec'. b:· s~:L1b ol ::, ~nc:: -.E 1 c-~: -:::F , ?.nr:'. ths n··-'.ITibers 

O f tJ.1e re·-:o :..'t5 f :;:or., \7hicl: ?-~a ~i1fo;-rr£. ti on oy :-,1e tho:-. of .-_:i.SI) O Si tiOI. -,,2.8 

c.rerm . 

:'e.bles r·e::-e rec e :. ·ec~ f:·o. the te.D'Ll..}.<:" ti!:. , secJ o~ . o f t he Don sus 

i n t•.1o fo~~ms , fi:c·st i~1 ··)enc:.l er:t:::. -, s o:1 :.·oto·: :..·i::. "·c ·:. Ho :.:k shee ts v1h~ ch 

have ;ror . .'. ce.~-ti ctl S 2.r:.'. 2.lso co L'.: ~- e.:::. · sym!Jol n·L2'.:- ·.;; :·s ~- •: :1ich tl1e 

inform2.tio:. ·:·es ::ecor l~ec'. o~:. ~Y:..'..:.1C:~l ce·_-.,-.£0 , ~!. c". s e c o: . . i n tt.:; f o:!.'I: of 

machine s~· oo·l: , !:!1o,-,ri n[. >.:;ot?.ls ~:::: L:.t ·::;:r t n8 2.C.·.·_:_, _0 te.J;v_la tor. Info:crna tio:: s~"lOF.l C'!. E'!E'.c.:-_i:'.P s!.: c=;e t s :1co ·_s t o be ·.eco -_e c'. i n Ol'l.er to 

rea( e2.sily. 

Fin she~ tf'b l c s he.ve o::cj_ •; r e-)E:: e·,_ i'l'O::.'t ::ls ' :'0:·::.·.: she e ts either 

by Inc".i e. i: : trE.:usc:::-i·)tio::s to roJ~ ·:..·i -:.. te:_ fo :.~r.:s , o :..· , ~; t~~Jewr i tt en 

CO:Jie s o: s e l e ctv·-_ i tees o::. [':.octs Q_ c.:o:·::e ct si z -:- :'.'or r-_l..t) liC2.t i on 

anc:bin·' L v_: . L1 2.Cl'.'.i t i .:.:1 rr, 1l "'c~ r- :2.-- ~: £"~1.-:::s s::.o--·il;__,. l8.1)or 8.11',_ L~2.c .e 

practice :_)l'O:i s~ o11s viol?.te.- , "".E.~.- c ~..ec::E -- :ce j2re c. ;·c::..· e2.ch co c,_e L1 

rrhicn com1_)2-e.ir:.t r ,., -; ~:e .oc' .e "'c . ___ : e :.:1:.e:: sho --s ·coL: the t2.bles coverec. 

'uy :1~ o:..~i :, e.l 1--o:,·l: shee~:s :::•.:1· J.. so t ._·:: -c :? :.:s c:..,::···t: io;::.s r."l:?.C.o f:i:o1:i t~'len , 

2.1! ~ ..-.-he t :J.-2-r tLe s c : E'':e bee~1 ·u lice t -=:c". . 

9861 

'l'8.blo l, \.uiol' of Ce.scs, ::n '. 

-!-,mlo r of ?.e:::-.·J o.1C:. on ts 

Ta.ble . Si ze o:..· ?..es"Don~~en ts ' 

-s te.o 1 i s~1men t 

~~umb el' of :;;m~_J lo -cos i n 

In ... · i vi ·'_u£- l J.y Cpe:.:e. teet. 

~s t£: b 1 i sr .. nen t s ' e.n ·_ i "l 

U:1. i t s of Cl''...:?.ins e n c.. 

Cor1-..,;.1.-, +l" O"'S ) l.. ~- -:.. ,... !-

Ta.ble 3 , Sou::co of Co ·.:.-') :?. ~t 

Table 4 , .J3tJ.-:.o ·· cf P"yoent 

of ·:·a.:_e ?.est i +:'~ ti on , 

b~· ~-1:-.: .. 11 -7 :: cf C.:"'.st>s 

(See a~ so Tebles 10 , l __ i , 

'l'able 5 , tllo ( of ClosL1 ~ Ce.s es 

Tab l e 7, ::Ci:.:e -:lE"·Js ec.,_ b3 ti-:eo::·. 

Jo c~-:e + i: _0 E·n.:'.: :::'i :::s t 

!cc t i o.1 

Tab le 8, '.I'i r:1e :=le.-:J s e c'. betn"'en 

Fi~s t bcti on n~ 

Clo s::.::c 

Tab l e S , :!Jlue $ :,-l e s r emove _,_ 

~y ta~e Dire c tors 

S Se r vice ~ra~e s 

AJ,.l me ho~·.s of All 1.1ct11oc1:.> of 

( is•Josi tion -_isT)osi tion 

Al} me tll.o ( s of 

( i SI)OSi tion 

11 

f....-._'_2,- s ee~ 

ce.ses 

lj "L".G t e :,_ , 

l10 ·vio l e.tion 

e.:.1:·. .._'_:ro,"J•J c~ 

ce.s e s 

k .1.1 :·.w t 10 c'. s o f 

:li s·· osi tion 

.i>.l~ me t ho ,· s of 

j._ -_j "Ll.S t e ('_ 1 

no v iole.tion 

2 i1 :·. .".r ~J~ o( 

cp s e s 

Dro)~Je(_ 

ca s e s 

AlJ. me t ho r'_s of 

is sitio:.1 

II 

A::.,_ jus t ed. , 

no v i ola tioi1 

anl' c,_ ro TJe:~. 

cr.se s 

Lll r.1e i·ll.o(.s of 

-.i spo r_, i t i oi1 

Al.::. me t ho (.s of 

:· i s·: o s i t i on 

(*) Te.b le n:ui.1be :·s corres~J n.'. t o t h os e o : t:1e o1·i 1~2. l tu , r2.the r 

t he.::. to i11.1.r:iiJ e rs of te::t t ab2.s s . 

, S861 
- 240--

.. .. ' ~ STATlj OFFICJ ~RIZS (cont inued ) 

Tabl e 10 Arnow1t e.nC'. Numb er 

o f Er:1:1 loyee s 

:?..e ce i v i ng 1.7e.ge 

.?ccs ti tution 

:;s tine tee:. Arno"Lm t 

2.1-:.c'. J li)loyees Owec". 

Te.ble ll Count o f Cases not 

::\ ~> o:;:ti:lg Wage 

3.estitution 

Te.ble 12 :.ie tho c,_ of PE·.ymen t 

of Yh::t,e 3.esti tution 

b;r Anou.n t 

La.bor 

A(,_justecl_ 

cases 

D1.~o:p _ _. e(_ 2.nc~ 

:penc'.L<t:; cases 

A :,_j llS t e C. 

cE·.ses 

A·,jus tee_ 

CP.S8S 

Table 1 3 He.tu:::. Ac.,_ jus t ec:_ ·G o f Viole.tions, 

by Ste.te l,_:c y::;:>e(~ , 

~)e ing 

(S e e e.lso Table 20, Coc'.e Series):e.ses 

Table 14 lJu1i1ber of 

cases/ by 

co(_ o 

T2.ble 15 C0c:o by -Ste.. te 

(oDitt ed) 

Tab l e 1 6 Inc".i vi c:ue.lly open::. toe: 

e ste.blisr.lii1Gnts by 

size 

( S e l e c t e c:. l i s t 

of ~ co c.,_os 

e.nc". 31 s·up~) 1 em en t s) ( *) 

Table 17 !.J"Lunbor of Units of 

loc l, scctionel, 

~1?. t i one.l cha i ns 

(Seloctc( list of 

811..: co(.: c s 2.nc'. 31 

S"lt) ~l omc n t s ) ( *) 

(*) See b e low f or list o f co (e s 

All metho (

1

.S of 

:..~iS OSi tion 

.f:_t'.j us t ec~ 

-_ro~J ecl 

e.r.:: 

Jencl_ i n£; 

CB.Se S 

Ac".justec:., 

dro~Jpoc, 

pe ing 

ce.sos 

Tra(e Practice 

See Table 20 

Ac.justed, 

c-_rop·_)ec 

anc:. 

:yenc'.ing 

(Selectee. 

list of 32 

co c".e s anc 6 

sutn lememts) ( *) - . 

A : jus t ed , 

_,_r ~Y-lec , 

pen ~. ing 

(Sel ct ee~ list 

o f 32 co de s 

8.11 (, 6 

su:9:plemen ts) ( *) 
- 241-

COD::::: SERIES_, OF TABLBF( continue-_) 

T2.L ::..o 18 , 'i.7"L1Jbe:..· of :>e.nch 

--..l::P.ts o·~ :B.!.ench 

sel~s offi cos, 

(Sele te~ list of 

;::4 co :' s e.n _'_ 31 

u~. :' l Of110~1 t S) ( *) 

Table 19, Sol.'..:.·cc of Cor:D l e.i :lts 

( ocittc<) 

me.ble . .JO, T;y-:_-;o of Vio l e tion 

Table 20E ::::c::es o f Viol:::.tio:.1s, 

o~- Size e.n -_ S te. te 

Te.ble 21, _!l_ssocie. tee.". Viole.tio11s 

(on i ) 

Te.b le . JJ)loyee Cle.ssifice.tio:1s 

Te.bl e 23, ::::;xte~'l t of v iole. tio:1 

?ercen tE'.f:.e of 

e~~ lo yoe s 2.ffe ct e~ 

~J ~· vi ole. tior..; 

~;:cll.'..c.'.in~ Ul:i ts of 

cl:.r:h:.s e. i: ~ combine. tions 

Labor 

A '.jus t ee. A,-_Justocl , 

~r p)e~ , ~r :~e~ , 

)C i1 L!g y:m "inl,; 

cesqs (Solccte2 list 

of 32 CO l~ OS 

?n~'- 6 

su:nlements) (*) 

All 1ne t h o,-.s of All motho('.s of 

c"isp osi tion c'.i s-oo si tion 

Seua.r2. te 6 

:p2.6e 2.112-lysis 

for ee.ch co c'.e 

n~'- sup ement 

(See table 13 

fe r ne..tione.l 

to t2.l s) 

A:'.j us t 

ce.ses 

( ~TP. t i oae.l 

tote.l s o:1l y ) 

pet;e e.n2.lysi s 

f or ce. ch c:oc~c 

?.n c,_ su:pp lemen t, 

£> lso 112.tion2.l 

to -. 1 Sl."lilli'lE'.ry 

jus te(\ 

~ro:p~Jec.. , 

J:Je n.'.i nt; , 

(Sele cte e'. lis t 

of l OS b2.sic 

co :'_es 2.i1(-_ 218 

s~J~'.l l emen tary 

co ~e s , 

(81', o.~e s e.n '_ 31 su_•::_Jl eme::ts) 

(*) Se e el o~ fo~ list o f co ~e s 

9S6l 
CODE SERIES OF TABLES (continuec) 

Table 24, Pe rioc,_ o f Viola tion 

b~. se ,_ on i n C.i vi c'.ually 

0 1 ) e r a t ee,_ e s t e.b li·shrnen t s 

(Se l e cte( lis t of 

84 es anel_ 31 

'l ~) lem ts) ,. 

Table 25 , Amount <m e'. :i.1UJnber of 

~I:lj_)loyees ?.ecei ving 

YJac e Restitution 

Table 26, Ca s es not r ep orting 

vJa {; e l"esti tution 

( or.1i t tee,_) 

Table 27, .Ar:lo'Lnt by l'.ietho e'. 

of :t- e_ymen t 

(oP.i tteC.) 

Table 28, Tir.1e receivecl 

. . '· . -....... ~ ,.._ 

Le.bor 

Ac.".jus ., 

c'.ro:p) ec\ 

~:-' 3n c,_i :i1g 

ca.ses 

.. 

.Ac'.j u s te e~ cas e s 

SPECIAL S~~I3S OF TABL~S 

Table 2.2, St'1l~_:- loyee Classificatio11 s 

·( transferrec'.. 

from co e serie s) 

Table 29, Si ze of Inc~ i vicl_ually 

o·,)ete. te e'. e s tabli ~illlen ts 

b y source of com_p l a int 

Tabl e 30 , Sour c e of Corn::_o laL.-:ts 

by Llon t h ?.ec e ived 

Table 31, Si z e of in:.,_i v i (,_ually 

Ol')era te e'. e stablishmen ts 

by ex t ent o f viola tion 

9861 

AcJusted 

c,_ roppec'., 

p enc,_i:..1g 

(Ha tional 

totals) 

Ac,_j ustecl_ 

ca s e s 

( 10 s@l e c t e e'. 

State Of f i c e s) 

Ac,_j u s t e el.. 

n o v iola tion 

ca se s 

(a ll office s) 

Ac

1

.j u sted 

(10 sel e cted 

St2. t e Office s 

Tr e.(e Pn~. ctic e 

A(.jus tee'.. , 

.:: ro }) ~) e(. , 

~:'e C. ne; 

(Se lectee: lis t 

32 basic coC.e s 

anc 6 su ) 

Lll me t :--ioc s of 

:·_ is:;_) o sit ion 

(Se lectee,_ 

list of 32 

co c.e s anc,_ 6 

'l~'P ) lenen t s) 
-243-

SPECIAL SLrti"""S OF TABL~S ( continue c,.) 

~able 02 , Si ze o_ P.c ivL \.1..a lly 

C·: e:.. !"> t ee'. s t::>.b 1::. slmen t s 

~.- crJo\.mt a J.1 C. numb e r 

o f c~:loyees recci\·ine; 

~e _estltution 

~eblc 31~ S1zc of l~i ts 

o f c·1E'.i 1s or 

Cor.t"ui:le.t io . . s, by' 

A:·1on}1·c 0.nc. lh'lTib e r 

o: -- ') oycc s 

:?:c cc:.. vL:i;_. "iia.{:;e 

?. ~ti tution 

Ta.ble 3~1 1, Size of 

I nc.i vid.uc:.lly 

o·.)era ted 

::::;stab 1 i SIHTIG!:. t S 

b;J : .e thoc1

. of 

::; lcsi; .~ 

Tab!_e 3SL!_, ~.ze of 

Table 36 , 

I ~'lc" i ·.:i c'.UE.lly 

c·1e :ca ted 

~stab 1 i s hner, t s 

b? 'J:imo -::12.') sec. 

i:1 C lo s :. :1tb 

T:2.me :Sla·os ed 

h'. Clc sii'.; by 

:onth Rece i vecl 

Tabl e 1, ( *) :i. ~L.'.nb c r of Ca s e s 

e.r.c.'. L.1Jilber of 

:-=:.e s·:onc.en ts 

Ta.b le 6, ; ~on th :rtecei vee. 

Te.ble 10, \:. o"L~lt a:r..C:. Fumb e r 

of ::::.::: lo.,·ees 

:?:ecei \- L 1E;; 

e ::.··esti t'l-.tion 

Lab or Trac'.e Practice 

Atjuste~ - - -

cases 

(10 s-:> lect ec'. 

State Offices) 

Ac"c}ns t ed 

ce.s es 

(10 sele cted 

Sta te Off ice s) 

A~justed - - -

cE>.s e s 

(10 selectec1 

Sta te Offices) 

Ac.jus tee 

cases 

( 10 oolectoc:. 

Ste.te Offices 

All metho~ s All 

of cl.is,1osi tion 

. (e.ll off ices 

All methocl s 

c f C. i SlJ 0 s it i 011 

Al l me t hods 

of dis1Josition 

C'e.tion-::.1 totals 

or.ly) 

Ac-jus ted ca s e s 

only 

riE!thods 

o f d.isp osi tion 

(all offices) 

(*) Te.ol e :wi .. 0ei.'S corres Jon.r~ to tables showi nt; similar items in 

t he State Offi r: c 

9861 
-244-

CASES UND:ZR ? B.ESIDEl1T 1 $ l1E3l.iPLOY1.1ENT 

AGREZM~1T (continued) 

Labor Trnde Practi ce 

Table 13, TY})e 'bf Violation Adjusted, 

c.ro:pped 

e.nd p endL16 

cases 

(National 

tota~s onl y ) 

List of code s to be include ~ i n : 

Table 24, Period_ of Violation 

Tabie 16, Size, Unit of 3stahlisr~ents 

Te.ble 17, Size, Chains anC.. Combinations 

::Cable 18, Size, :Branch Plants anc..1. ranc ~ State Offices 

TPAD~ P?AC~IC~ COD~ SE?ci~S 

AlDhabetical Symb'ol 

Number CODE NAl.l3 

036 

050 

058 

059 

085 

102 

130 

149 

154 

165 

222 

231 

346 

375 

408 

412 

470 

563 

564 

622 

690 

691 

692 

694 

695 

696 

697 

698 

9861 

----

Automotice Parts a no. ~qui:pment ('Basic CoC:e) 

J3a.king 

Beauty anc Barber Shop ~quipment 

:Bedding 

:Build.e rs' SL.l-i)·_; lies 

Canvas Gooc1s 

Cleanin[; &. Dyeing 

Construction·· (~asic) 

Electrical Contracting 

Plumbing 

:.::aectl~ical Hanufacturinb (.Basic) 

Fabricat ed l' ete.l Proc':G..cts (:9·asic) 

Graphic Arts (13e.sic) . 

Commercia l Relief Printi ng 

Householc. Goocl.s, Stora£;e anc. ii~~ 

Ice 

Lumber and Timber 

JI:Io tor Vehicle Re t a il 

r.iotor Vel'licle Storage ancL ParkL.1g 

Ph~to phic f!.:. Ph oto Fi n ishil1t; 

Rciail ood ~ Grocery 

Retail J ewe l r y 

Retail Lumb e r 

:rto tail : :onL.unen t 

:?.ctail ~u er Tiro c.":. Battery 

Retail Solid Fue l 

:g_etail ob cco 

.?-e tail Trade 
iRAJ~~ ~J:?.ACTIC~ CO ~: S3?I:S (con'Linucc ) 

A.nheJ; ti cc.:. s~·~:-t ol 

i1urnber COJ=: !·i.hi' ~ 

6S" _sc ll rs Tre.c'e 

702 7Dtail D:~~ Tr~{~ 

7'3 7 

7L:.L_!_ 

304 

8~9 

844 

g48 

835 

AL· :1ate t:i. C-:: .1 

Coc' e ~r.noo 1 

010 

0:33 

0~>6 

050 

O:JS 

056 

OS9 

064 

068 

07~ 

075 

098 

100 

1:~_4 

125 

130 

134 

149 

l SO 

l Sl 

132 

l :J3 

154 

15::3 

l So 

9861 

Se ~) rC?.~ )er :Bo:· i.fb . InC' . 

Shoe :::.ebui l di·1G 

• I ,lc:-::L :G 

r:J: ca t :.'lour 

':;ho l csale Confectione ry 

~ho: sale Foo : ~Grocery 

' . .' ho es£~ ling 

:lectrical ~hol csa e 

32 code s 

6 su l~ emcn ts 

COD::S LU:u: :U 7ABL3S 16 , 1 7 , 18 , 23 and 24, 

Al -:~: ol c :;::ove:.~0. ;::· e 1

:iho l ese.l o 

Aummoo ile Lf[~ . 

f_utomo t i vo ?::- rtr, & ~!J. ..l ·o me n t 

--al:i n £, I 11 c~us try 

:;:'a:..>.l:ers nd.u tr~i 

~·-?.::'be:;: Shou T:cf".c.e 

·· ~r' ii:~ I n(nst :c:' 

::-·i tl.'rai nous 8os>.l 

:S1o1.1.Se 2.:'1C:. Sl:i r t 

: oo t 2~1(_ S110C 

:ottl o( Soft ~ri~: 

Ce.:1c'~ · f.£.: .ufac t-:..1.:..'L1,_; 

C ?.!E:.L1r · I nc'.1.1.s t i';)' 

Cher.1i cE l L1an1.'.fac turL1c 

C i 1

: <.:.r I:B.i1ufac tu:..'Ll[ 

C l ea1 L1c:_; e.:n. c1. J~r e i :.1i:-, 

C 02. t 2.nc- Suit 

Cons t ::-v.ct io ~~ Ll(us t :!.7 

ui cii:~._, r-re.rli tc 

*CcE1el1t -1m Contrac tors 

Co ~1 stru. tion lTerrs Service 

*Ca rL I 1 S1..1.l 2.t i o:1 Coutrac t o rs 

*:::.a c e L 'i cr.l Con ~ract L:t-; 

*:=:. 1 uva to·i' i !f . 

*G·eHen:·.l Cont~'e or s 
Al-·;bc'"'..be t i c:--.1 

Co(e SyiJ:)Ql 

l f)7 

~) 8 

159 

l GO 

161 

6~~ 

163 

164 

165 

166 

167 

168 

169 

170 

171 

180 

186 

192 

210 

222 

22.::> 

298 

322 

":: '7r) v .... J.:J 

335 

346 

347 

3S2 

373 

382 

'383 

387 

407 

430 

435 

443 

446 

460 

4 70 

47~ 

431 

542 

9861 

- 246-

CO~J s L-CLU:OE:J r- 7A L::S :6, 17, 18 , 

~~ :::- 2.:1.c. -~ . (cont5.u;_eC..) 

LABO~ CODE S~RI~S 

CODe ~TAL:; 

!~e atL:;~ , ;pi ?~l1(;; 2.ll(

1

. )_i r Conr . 

)lY/8.~' Cont:.: tol~s 

*I ~su ~tio n Co nt ~ctors 

*Ke.l arne i r:. I:i.1LuE try 

*l. arb l e COi.l t re.c t i r:..; 

ason Contractors 

*Paii1 tL1c; (; Pe.:)e ::.~hal.l( Llt; 

*:i:'.J le.st e :ci::.10 t__ T:e.thLlG 

*P1-L.u·.ib ~1L Cont ra e t ~1c 

~esi li ent rlo ri ~~ 

*:?.oofi:n.· .. t:'; Z-hee t I.:e tal 

to ~e Cut t in · Cont ractors . ·-' 

n:azo C. os ic Contr. 

*Tile Co~tractors 

*':: o:> ,-_ ::.'lc o :c Co :<'. t 1~c- ct o rs 

Co t to·a C:re. :cme!'l t I nc,:us t :ry 

Cotton Textile (Basic) 

,_shec.~_ Stone, :.~ C.; G- ::.~a vel 

:Jress ; :1 ::.~act.- :::L1c, 

ilGc tri cal 1.;2.nu:Cr· c Cl..1_rir.t; Inc

1 

.• 

*Wiri n ·; Device 

Fab ri ca.te cl. r.;e tals (:Dasi c) 

l'erti li zel" lilc."~us t ry 

ol C.L1~ Pe.:pe1· 3 o:x : ::t'g . 

l'Ln~ l :an1..,_f a c b u"L l[.; 

:?u:tni ture :e.~ll:_fe. c tu:~L1.; 

C -r2.phi c A:.·t s (To t2.l) 

*In ~; io Pri:i1 tL1t:; ?ro ce ss Crou::9 ) 

*I,i tllO;;ra.--~}l ic P l"iT".ting Process 

*?.e lief ?1~L!til1.; Pl~ocess G1·o1.1~)1 

r;~r (.e Li ~1 t; rc.-Jhi c Pla t e Bal:int; 

*T:r.'c>.Ce !·.:ow1tint:; [; Fi l1 ishin{;, 

Cra.y I r on :.-o-,'nctry 

~Io t G 1 l: ~.US t :;.~y 

Infants(; Ch ilc:rer:' s ·.~ eal~ 

Iroi1 [; Steel 

L:.li t tee,_ Ou t ei.T ear 

aunc i.·~ 'ira( e 

Leatl:e:c 1:-l(.us try 

LugL;a {:;e (; l'e Le?.t :~ r Gooc.s 

Lumb e r [; i_l i r: .. iber 

l.ia.caro11i i iP..lufac h .. u" i :nr; 

l.~a l.iilG:c;:l [.; All i ec. Pro c.ucts (Basic) 

1 ien 1 s C lo t1_in; 
Al pnabe t ice.l 

Code Syr.1bol 

543 

555 

560 

:562 

563 

564 

605 

617 

622 

678 

687 

690 

6Sl 

692 

693 

695 

696 

697 

698 

699 

701 

702 

732 

737 

739 

744 

749 

756 

763 

797 

800 

802 

804 

810 

811 

816 

839 

841 

844 

845 

848 

873 

9861 

- 247-

CQD:::;s r:·CLUD::D r-· 7ABL:2S 16 , 17, 18, 

23 a:1c. 31, (col1tinuc') 

LhP.OR CODE s:s: r::::::s (contim.v;d) 

COD~ 11Jd.3 

l' ·en 1;s Ne ckwear 

Li llinery 

I.:otor Bus 

~tor Vehicle int enan e 

i'"oto r V@hiclc "'.et-1-il 

Lotor V0 ::icle Sto:;.~age (.; Pe.:~l: i:'lb 

Pape r 2:. ?ulp 

Pot rolcur.1 I nC.us try 

P:1o t o{;ra:)1;.i c G:. :tho to fini sh:..ng 

:2E:xon Silk "YJ"' an6. ?J.~int 

Res tl ... n~ai1 t 

P.etail FooC:. a. 1. :::o ery 

P.c tail ;r 3WeliJ 

P..e tail Lumb er 

:S.e tail ~:ea t 

:?..e t e.il 3D.b~cr 7ire :!. Jattery 

::to t a il So li e'. Fl--..e l 

?..eta il Tobacco 

?.e tail TrEv'.o (::Je.sic) 

*Bookse lle rs 

*Re tail Custom Ili l l1ne ry 

*3.ete.il Drug 

Sc~ap Iron (Basic) 

Set- Up Pa]::'er :Box ;.Ifg . I n(ustry 

Shi pbuilC'. i n.::; (.; Ee:1ai r i ng 

S!1oe F.eb1,_ilc

1

.L1C 

Sill: Textil e 

Soap anc~ Gl y c e 1:L1e 

~e cial J:ool, :Jie (; i.a ch . Sho·). I nC.. . 

Textile ocessi n~ 

7oy 2:. aythi:i1 s 

Transit 

Tn1..ck i :1.g 

UnC:.erbannent G.:. E8 g liE:,ee 

Unde:rwear ,"?,: Alli e'-·· P:coc;_ucts 

Used Texti l e 3ag 

Uheat Flour .•.iilling 

ifl1olese.lc Auto Tl~E' cl c 

iiJholesale I'ooc!_ 2: C :rocery 

·,'Tholesale ?rcsi1 F:f'Uit 2:. Vet:_;ctaole 

;iil10lesale Tre ... c:.c 

.7ho le sale 'lobacco T ac~e 
All) habe t i ca l 

Code Sym-Do l 

882 

889 

892 

712 

- 248-

OD~S HICLU!Jlm I1' TABL:SS 1 6 , 1 7, 18 , 

23 and 24 

LADOJ COD2 ~?.I~S (conti nueQ) 

1

Hood Hee l InC.ustry 

Vioo d Textile 

n~ !::. Sal vace 

Rubber l\'if l6 • I:nC.us try 

* S"Ltp"? l ement::.l co des ,,-,'i t h s epar2.t e l abor ·:-revisions a1~e de sit:;na t e d 

b y an a sterisk . 

· ,·, . 

9861 
Al aba ma 

Ari zona' . 

Arkansa s 

C8l ifo r nia 

Los Angel e s 

San Franci s co 

Colorado 

Conne cticut 

Jela:vare 

ist . of Co l umb i a 

Fl orida 

Georg ia 

I a dho 

Illinois 

Indi ana 

Iowa 

Kansa s 

Kentucky 

Louisiana 

a.ine 

Maryland 

Massa.chuse t t s 

'ii chig an 

Hinnesot a 

Mi ssi ssiEJi 

Missouri 

Montana 

Pebraska 

New Hamp shire 

C\SES REPORTED HANDLEJ BY 

~ ~.-J _U1D LOCAL A:JJUSTMENT J O · J)S 

67 

)l 

0 

../ 

72 

29 ~ 

52 

L~S 

1 

70 

?.75* 

1S 

58 

2S 

151 

lL-:: '../ 

~~ 

l 

Go 

0 

..) 

')'> 

Ne1.v J o:c ,.. ' 

Ne•.7 : :8:~~ co 

~e ·. r -; o rl: 

· Al Jc:- :1J 

3u:f ~'.l 0 

New ': ol~l~ :::i ty 

Nev2ln 

Nor t :1 C.:.:..·o:i_i na. 

Nort·l ~22 :o 'Gt'. 

Ohi o 

Okl .'..'. "LO:J2. 

Or .c~ n 

Pe rms-•1 vr-:J.i a 

P!:li 1 -- ·~. e :.J~'l i a 

Pi t t ::;;u .<: 

:lho '". e I s1c.nd 

Sou t h :)r>.l'o1 i :na 

Sou G!.1 :=..:-l;:: ot:::>. 

Tenn e sse e 

Tex2.s 

Dn.llc:.f> 

Houston 

Utah 

Ve r mont 

Vir:; i n i t:'.. 

: as~J. l ·t 011. 

-le ;:- t VL - ~.i· .':'.. 

7 i scon sL'2. 

'J i n.:; 

A- 17 

110 

0 

20 

6 

52 

3 

164 

83 

23 

451 

87 

57 

91 

6 

15 

47 

1 

6 

1 

21 

2 

44 

11 

6 

Tot al .. . . . . . . . . . ... . ... . ..... . .• 2, 813 

* (Esti ma te ba sec·. on 109 cas es by 11 local 3 oc'..:..·r:.s 

72 case s by St e Boar d 

15 l ocal Boar ds not rte ) 
1\ 
1.:11.~ S'lln OJTI~ OOIIPLUII't SUTIS'l'IC8 

DISPOSITIOI 01' CASIS BY STAB .dD LOCAL ADJUSftDT BCWIDS (Jiepr .. entaUn Sulple) 

total 

.... t.ill£1 

Al'baue 

DaUt. Lion 4aleh•· 31 

CaUl.,,.. J'rachce. JO 

1'1or14a 

26 

35 

33 

10 

Or-coa 32 

r...ftUMalJ)ala. 72 

..u.. •. ,_ ~ 

Ylraiala S 

l'ed Tirclala 36 

total 

Ca••• 

Ball4.1ed 

52 

81 

lS 

11 

1,1i13 

!o\al 

Viol&Uone 

1'0UII4 

33 

52 

25 

32 

61 

11 

Sl 

61\ 

16 

~35 

32 

17 

20 

.&4ju.ete4 

13 

26 

7 

9 

1~ 

23 

5 

19 

12 

13 

25 

37 

10 

372 

10 

10 

18 

Co11prollli .. 

.&ppron4. 

7 

11 

1 

1 

8 

13 

2 

22 

11\ 

0 

Ill 

1 

7 

II 

20S 

• " caa•• !Ualaa\ed. Moa.• h\alla et 41.,.oa1Uoa 'UkMwa, 

Co ~~proaiee 

Di~ 

sppraYed. 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

0 

0 

0 

0 

0 

0 

1 

Dropped 

3 

2 

3 

1 

1 

11 

2 

7 

1 

2 

1 

2 

0 

0 

0 

0 

Blae .Jac1• 

lleao.al bT 

8\ah Dlrec\or 

(8erY1ce) 

1 

l 

1 

3 

0 

3 

ll 

5 

ll 

1 

0 

0 

5 

0 

1 

0 

i3 

to 

Co~~pl1&!1Ce 

D1Y1e1on, 

et.c. 

6 

3 

13 

1 

7 

ll 

0 

45 

II 

16 

3 

6 

0 

6 

6 

0 

1 

II 

1J2 

Yiol&Uoa 

1'0'CUI4 1111\ 

Jo A<l\lon 

(Pen41114!) 

0 

II 

0 

5 

1 

0 

2 

3 

2 

2 

8 

5 

II 

16 

0 

0 

0 

0 

52 

total 

lleJec\ed 

1 

8 

20 

7 

20 

16 

111 

8 

7 

16 

15 

II 

21 

0 

221 

Izuru!tlc 1 en\ 

~14ence 

0 

l2 

0 

5 

3 

10 

2 

s 

16 

2 

II 

16 

1 

2 

12 

0 

111 

Jo 

Tiol&Uou 

1 

l 

6 

2 

1, 

15 

3 

9 

1~ 

ll 

6 

6 

2 

0 

13 

2 

7 

0 

92 

.. .Jvie41cUoa 

0 

2 

0 

2 

3 

0 

1 

1 

0 

2 

3 

0 

1 

0 

1 

0 

2 

0 

lS 

.. .&.c\ice u4 

C..,11uooe 

act. decided 

0 

0 

0 

2 

0 

0 

2 

7 

l2 

10 

0 

0 

0 

0 

3 

0Yenoale4 

bT 

8\ak Dine 

0 

0 

1 

0 

0 

3 

1 

' 0 

0 

1 

0 

3 

1 

0 

0 

..1 

20 

\or 

A- 32 

... . . . ; c-' ~J CAS~ 1 PHE7:i::i:t:1ED 'W .'~~~ C: .!.1 OFFICES -----·- ---· ·--- --

. (o ~ of .J oc .;: C' teC. J. fe :.·:c·e<\ C;:'.L 8S .L efer red Ca ses 

CaGes Refer c '. ntcs C1o sed o::..· __ djusteo Penr

1

.ing 

b•r Cor p1it'l}_ e :~_i~ e_f~: r.·e d _ _ oy :1eg on ~ _ _Q_ffice t1ay 11, 1935 . 

I 5g 12/ · )/34 to 53 5 ~ I.-, ; 7. • 

.., f _') , -'1 )) 

II 60 l / 2f'5/3 5 to 54 6 

J/ 6/35 

III I : 6,-o 0.) 2/ 19/35 to )66 103 

IV I 

117 12/19/34 to 51 36 

2/1 6/35 

v 96 12/ 21/34 to 76 20 

3/12/35 

YI 165 12/19/34 to. 2t~ 4i 

3/l/35 

VII 84 1?./20/34 to 70 14· 

3/1 6/35 

' .. ' .. VIII 56 12/ 21 /3l+ to 51 5'· ··. 

3/9/35 

~, 98 1?./ 2':)/34 to 50 .. 18 .. 

3/ 15/ 35 

--- - ·----- - ·--- -- · -- ------

TOTAL 1403 1175 . .2'48 
WEEK ENDING 

5-12-34 

5-19-34 

5-26-34 

6-2-34 

6-9-34 

6-16- ~4 

6-23-34 

6-30-34 

7-7-34 

7-11.!-34 

7-21-34 

7-28-34 

8-4-34 

8-11-34 

8-18-34 

S-25-34 

9-1-34 

9-8-34 

9-15-34 

9-22-34 

9-29-34 

10-6-34 

10-13-34 

10-20-34 

10-27-34 

11-3-3)+ 

11.:..10-34 

11-17-34 

11-24-3l+ 

12-1-34 

12-8-34 

12-15-34 

12;..22-34 

12-29-34 

TOTAL 

- 252-

S':l..t..IJ:I STI CAL REPORT ON co; :PLAilJTS 

REC:c;IVLJ E T .t'\J:u\LYSIS BRANCH, COlvrPLIAl' CI! :DI VI .. 

SION :;0::1 p::_:::;:,;.roD lAAY 7, 1934 TO DECK .J3~rt 29, 1934. 

COiviPLAINTS T~ ST IGATED CASES COl.iPLAI lT':l S OF HAJ\1]) 

RECEIVED .AEALYZED ADJUSTED EFEl-UffiD OR · 

I N SUSPENSE 

216 40 12 157 

178 44 7 106 

169 38 20 146 

166 44 11 96 

160 41 9 149 

119 24 16 103 

174 18 2L~ 152 

165 23 23 116 

175 22 19 143 

373 39 7 346 

217 26 11 203 

200 25 11 171 

220 39 18 259 

202 42 14 155 

205 27 18 152 

224 41 15 129 

201 30 22 189 

266 50 17 197 

315 61 24 203 

217 40 9 191 

263 56 16 225 

309 33 21.~ 229 

245 31 33 299 

309 33 25 216 

265 46 33 214 

287 61 16 223 

316 52 15 219 

362 37 29 259 

386 59 40 407 

393 40 21 211 

345 73 34 329 

411 84 21 262 

358 48 13 317 

272 13 12 28g 

8683 1380 ..-,9 0 ) 6855 

AVERAGE (34 wks) 255.l+ 40. 6 18.8 201.6 

9861 # 

A-32 

fulvffiER 

OF 

ANALYSTS 

12 

12 

12 

11 

11 

11 

12 

10 

9 

10 

10 

9 st 

9 1 

9 

9 

9 

9 

g 

8 

8 

8 

3 

8 

8 

8 

10 

10 

11 

10 

12 

12 

12 

11 

11 

327 

9.6 
OFFICE OF THE NATIONAL ECOVERY ADMINISTRATION 

THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, es t ablished the Divisi on o f Revie ~ of the 

National Recovery Administration. The pertinent part of t he Exe cutive Orde r reads t hus: 

The Division of Review shall assemble, analyz e, and report upon the s t atistical 

information and records of experience of the operations of the various t rades and 

industries heretofore subject to codes of faiP compet i tion, all st udy the e ffects of such codes upon trade, indust r ial and labor conditions in gene r a l, and 

other related matte rs, shal l make available for the protecti on and promo tion of 

the public interest an adequate revi ew of the effects of the Admin istra t i on of 

Title I of the National Industrial Recovery Act, and t he pri nc i ples and polj~ies 

put into effect thereunder, and s hall otherwise aid the President in carrying out 

his functions under the said Title. I hereby appoint Leon C. Marshall, Dire ctor of 

the Division of Review. 

The study sections set up in the Divis ion of Review covered these areas: industry 

studies, foreign trade studies, labor studies, trade practice studies, statistical studies, 

legal studies, administration studi es, misce llaneous studies, and the writing of code histo ries. The materials which were produced by the se sections are indicated below. 

Except for the Code Histories, all items mentioned below are scheduled to be in mimeographed form by April l, 1936 . 

THE CODE HISTORIES 

The Code Histories are documented accounts of the formation and administra~io n of the 

codes They contain the definition of the industry and the principal products thereof; the 

classes of members in the industry ; the history of code formation including an account of the 

sponsoring organizations, the conferences, negotiations a nd hearings wh i ch were held, and 

the activities in connection with obtaining approval of the code; the history of the administration of the code, covering the organization and operation of the code authority, 

the diff iculties encountered in administration, the extent of co plian~e or non-compliance, 

and the general success or l ack of succ ess of the code; and an a nalysis of the operation of 

code provisions dealing wi th wages, hours, trade practices, and other provisions. These 

and other matters are canvassed not only i n terms of the materials to be found in the files, 

bu~ also in terms of the experiences of the deputies and ot hers concerned with code formation 

and administration. 

The Code Histories, (including histories of certain NRA units o r agencies) are not 

mimeographed. They are to be turned over to t he Depa rtment of Commerce in typewritten form. 

All told , approximately ei ght hundred and fifty (85 0) histories will be completed. This 

ti~~ber includes all of the approved codes and some of the unapproved codes. (In NQrk M£1~

rial~ !iQ..:... 1§, Cogtegts Qf Cod~ Histo£ies, will be found the outline which governed the 

preparation of Code Histories.) 

(In the case of all approved codes and also in the case of some codes not carried to 

final approval, there are in NRA file s furt her materials on industries . Particularly worthy 

of mention are the Volumes I, II and III which constitute the material officially submitted 

to the President in support of the recommendation for approval of each code. These v0lumes 

9768--l. 
S
-ii -

set forth the origination of the codes, the sponsoring group, the evidence advanced to support the proposal, the report of the Division of Research and Planninv on the industry, the 

recommendations of the various Advisory Boards , certain types of official correspondence, 

the transcript of the formal hearing, and other pertinent matter . There is also much official info ·mation relating to amendments, interpretations, exemptions, and other rulings. The 

materials mentioned in this paragraph were of course not a part of the work of the Division 

of Review . ) 

THE WORK MATERIALS SERIES 

In the work of the Divi ion of Review a considerable number of studies and compilations 

of data (other than those noted be low i n the Evidence Studies Series and the Statistical 

Material Series) have been made. These are listed below, grouped acco rdi ng to the character of the material. (In Work Materials No. 17, Tentative utli~ _9,nd Summaries Q.f 

Studies in Process, the mat erials are fully described). 

IndustrY Studies 

Automobile Industry, An Economic Survey of 

3it~minous Coal Industry under Free Competition and Code Regulation, Ecnomic Survey of 

Electrical Manufacturing Industry, The 

Fertilizer Industry, The 

Fishery Industry and the Fishery Codes 

Fishermen and Fishing Craft, Earnings of 

Foreign Trade under the National Industrial Recovery Act 

Part A - Competitive Posi t ion of the United States in International Trade 1927-29 through 

1934. 

Part B 

Part C 

Section 3 (e) of NIRA and its administration. 

Imports and Importing under NRA Codes . 

Part D Exports and Exporting under NRA Codes. 

Forest Products Industries , Foreign Trade Study of the 

Iron and St eel Industry , TQe 

Knitting Industries, The 

Leather and Shoe Industries, The 

Lumber and Timbe r Products Industry, Economic Problems of the 

hlen's Clothing Industry, The 

Millinery Industry, The 

Motion Picture Industry , The 

Migrati on of Industry, The: 

1926 to 1934 

The Shift of Twenty-Five Need le Trades From New York State, 

National Labor I ncome by Months, 1929-35 

Paper Industry, The 

Production, Prices, Employment and Payrolls in Industry , Agriculture and Railway Transportation, January 1923, to date 

Re t ail Trades Study, The 

Rubber Industry Study, The 

Textile Industry i n the United Kingdom, France, Germany, Italy, and Japan 

Textile Yarns and Fabrics 

Tobacco Industry, The 

Wholesale Trades Study, The 

Women's Neckwear and Scarf Industry, Financial and Labor Data on 

9768-2 

- iii -

Women 's Apparel Industry, Some Aspects of the 

Co ~.o dities, Information Concerning: A Study of NRA and Related Experiences in Control 

Distri buti on , Manufacturers ' Control of : Trade Practice Provisions in Selected NRA Codes 

Distributive Relations in the Asbestos Industry 

Design Piracy: The Problem and Its Treatment Under NRA Codes 

Ele~trical Mfg. Industry: Pr~ce Filing Study 

Fertilizer Industry: Price Filing Study 

Geographical Price Relations Under Codes of Fair Competition, Control of 

Minimum Price Regul ation Under Codes of Fair Competition 

Multiple Basing Point System in the Lic e Industry: Operation of the 

Price Control in the Coffee Industry 

Price Filing Under NRA Codes 

Production Control in the Ice Industr y 

Production Control, Case Studies in 

Resale Price Maintenance Legislation in the United States 

Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. 

Trade Practice Rules of The Federal Trade Commission (l91 il.-l936) : A classification fur 

comparision with Trade Practice Provisions of NRA Codes. 

Cap and Cloth Hat Industry , Commission Report on Wage Differentials in 

Earnings in Selected Manufacturing Indus~ ries , by States, 1933-35 

Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-35 

Fur Manufacturing, Commission Report on Wage s and Hours in 

Hours and Wages in American Industry 

Labor Program Under the National Industrial Recovery Act, The 

Part A. Introduction 

Part B. Control of Hours and Reemployment 

Part C. Control of Wages 

Part D. Control of Other Conditions of Employment 

Pa rt E. Section 7(a) of the Recovery Act 

Materials in the Field of Industr i~: Relations 

PRA Census of Employment, June, October, 1933 

Pue rto Rico Needlework, Homeworkers Survey 

Administr ative and Le gal Aspects of Stays, Ex enptions and Exceptions, Code Amendments, Conditional Orders of Approval 

Administ rative Interpretations of NRA Codes I 

Administrative Law and Procedure unde r the NIRA 

Agreements Under Sections 4(a) and 7(b) of t he NIRA 

Approved Codes in Industry Groups, Classification of 

Basic Code, the -- (Administrative Orde r X-61) 

Code Authorities and Their part in the Administration of the NIRA 

Part A. Introduction 

Part B. Nature, Composition and Organization of Code Authorities 

9768-3. 

Part C. Acti vities of the Code Authorities 

Part D. Code Authority Finances 

Part E. Summary and Evaluation 

Cvde Compliance Activities of the NRA 

- iv -

Code Making Program of the NRA in the Territories, The 

Code Provisions and Related Subjects, Policy Statements Conce rn ing 

Content of NIRA Administrative Legislation 

Part A. Executive and Administrative Orders 

Part B. 

Part C. 

Part D. 

Labor Provisions in the Codes 

Trade Practice Provisions in the Code s 

Administrative Provisions in the Codes 

Part E. Agreements under Sections 4(a) and 7(b} 

Part F. A Type Case: The Cotton Textile Code 

Labels Under NRA, A Study of 

Model Code and Model Provisions for Codes, Development of 

National Recovery Adm ini stration, The : A Review of its Organization and Activities 

NRA Insignia 

President's Reemployment Agreement, The 

President's R~employment Agreement, Substi tutions in Connection with the 

Prison Labor Problem unde r NRA and the Prison CJmpact, The 

Problems of Administration in the Overlapping of Code Definitions of Industries and Trades, 

Multiple Code Coverage, Classifying Indivi dua l Members of Industries and Trades 

Relationship of NRA to Government Con t racts and Contracts Involving the Use of Government 

Funds 

Relationship of NRA with States and Municipalities 

Sheltered Workshops Under NRA 

Uncodified Industries : A Study of Factors Limiting the Code Making Program 

Legal Studies 

Anti-Trust Laws and Unfair Competition 

Collactive Bargaining Agreements, the Right of Individual Employees to Enforce 

Commerce Clause, Federa! Regulation of the Employer-Employee Relationship Under the 

Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial 

Regulatory Legislation 

Enforcement, Extra- Judicial Methods of 

federal Regulation through the Joint Employment of the Power of Taxation and the Spending 

Power 

Gove rnmen t Contract Provisions as a Means of Establishing Proper Economic Standards, Legal 

Memorandum on Possibility of 

Industrial Relations in Australia, Regulation of 

Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Commerce Clause, Cases on 

Legislative Possibilities of the State Constitutions 

Post Office and Post Road Power-- Can it be Used as a Means of Federal Industrial Regulation? 

State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis 

Tariff Rates to Secure Prope r Standards of Wages and Hours, the Possibility of Variation in 

Trade Practices and the Anti-Trust Laws 

Treaty Making Power of the United States 

War Power, Can it be Used as a Means of Federal Regulation of Ch i ld Labor? 

9766--4. 

- v -

THE EVIDENCE STUDIES SERI ES 

The Evidenc e Studies Wd r e originally undertaken to gat he r material for pending court 

cases . After the Schecht e r de cision the project was continued i n orde r to assemble data for 

use in connection wi th the st udies of the Division of Revi ew. The data are particularly 

concerned with t he natu r e , si ze and opera tions of the i ndustry ; and with the r elation of the 

industry t~ interst ate commerce . The industries covered by the Evidence Studi es ac c ount f or 

more than one-half of the total number of workers under code s. The list of those studi es 

follows: 

Automobile Manufacturing Industry 

Automotive Parts and Equipment Industry 

Baking Industry 

Boot and Shoe Manufacturing Industry 

Bottled Soft Drink Industry 

Builders' Supplies Industry 

Canning Industry 

Chemical Manufacturing Industry 

Cigar Manufacturing Industry 

Coat and Suit Industry 

Construction Industry 

Cotton Garment Industry 

Dress Manufacturing Industry 

Electrical Contracting Industry 

Electrical Manufacturing Industry 

Fabricated Metal Products Mfg. and Metal Finishing and Metal Coating Industry 

Fishery Industry 

Furniture Manufacturing Industry 

General Contractors Industry 

Graphic Arts I ndustry 

Gray Iron Foundry Industry 

Hosiery Industry 

Infant's and Children's Wear Industry 

Iron and Steel Industry 

Leather Industry 

Lumber and Timber Products Industry 

Mason Contractors Industry 

Men's Clothing Industry 

Motion Picture Industry 

Motor Vehicle Retailing Trade 

Needlework Industry of Puerto Rico 

Painting and Paperhanging Industry 

Photo Engraving Industry 

Plumbing Contracting Industry 

Retail Lumber Industry 

Retail Trade Industry 

Retail Tire and Battery Trade Industry 

Rubber Manufacturing Industry 

Rubber Tire Manufacturing Industry 

Shipbuilding Industry 

Silk Textile Industry 

Structural Clay Products Industry 

Throwing Industry 

Trucking Industry 

Waste Materials Industry 

Wholesale and Retail Food Industry 

Wholesale Fresh Fruit and Vegetable Industry 

Wool Textile Industry 

THE STATISTICAL MATERIALS SERIES 

This series is supplementary to the Evidence Studies Series . The reports include data 

on establishments, firms, employment, p~yrolls, wages, hours, production capacit ies, shipments, sales, consumption, stocks, prices, material costs, failures, exports and imports . 

They also include notes on the principal qualifications that should be observed in using the 

data, the technical methods employed, and the applicability of the m~ erial to t he study of 

the industries concerned. The following numbers appear in the series: 

9768--5. 

Asphalt Shingle and Roofing Industry 

Business Furniture 

Candy Manufacturing Industry 

Carpet and Rug Industry 

Cement Industry 

Cleaning and Dyeing Trade 

Coffee Industry 

Copper and Brass Mill Products Industry 

Cotton Textile Industry 

Electrical Manufacturing Industry 

- vi -

Fertilizer Industry 

Funeral Suprly Industry 

Glass Container Industry 

Ice Manufacturin~ I ndustry 

Knitted Outerwear Industry 

Paint, Varnish, ana Lacquer, Mfg. Industry 

Plumping Fixtures Industry 

Rayon and Synthetic Yarn Producing Industry 

Salt Producing Industry 

THE COVERAGE 

The original, and approved, plan of the Division of Review contemplated resources sufficient {a) to prepare some 1200 histories of codes and NRA units or a gencies, {b) to consolidate and index the NRA files containing some 40,000.000 pieces. (c) to engage in extensive field work, {d) to secure much aid from established statistical agencies of government, (e) to assembl e a considerable number of experts in various fields, {f) to conduct 

approximately 25% more studies than are listed above, and (g) to prepare a comprehensive 

summary report. 

Because of reductions made in personnel and in use of outside experts, limitation of 

access to field work and research agencies, and lack of jurisdiction over files, the projected plan was necessarily curtailed. The most serious curtailments were the omission of 

the comprehensive summary report; the dropping of certain studies and the reduction in the 

coverage of other studies; and the abandonment of the consolidation and indexing of the 

files. Fortunately, there is reason to hope that the files may yet be carec for under other 

auspices. 

Notwithstanding these limitations, if the files are ultimately consolidated and indexed the exploration of the NRA materials will have been sufficient to make them accessible 

and highly useful. They constitute the largest and richest single body of information 

concerning the problems and operations of industry ever assembled in any nation. 

9768-6. 

L. C. Marshall, 

Director, Division of Review. 




"· 

' 
ministration. 

no . 85 ·.vork materials. 

DATE ISSUED TO 

n o. 85 

ftOOio 

.,. ......