White House Statement on Executive Order 6723 on Service Industries and the N.R.A.

Most industries have a national community of economic interest even though the operation of some of their units is local. There are others which, notwithstanding their having national trade associations, do not actually integrate themselves nationally. Whether an industry can govern and police itself under the fair trade provisions of a national code depends on its degree of actual economic integration on a national scale and on the organization and solidarity within the whole industry. A trial period of some months has shown that while most industries, after organization for this work and a little experience with it, can secure uniform national results, there are others to which a greater degree of autonomous local self-government is desirable. Among these are some, but not all, of the so-called service industries- that is, industries engaged in the sale of services rather than of goods.

No industry would give up the gains we have made in the elimination of child labor and in the establishment of minimum wages and maximum hours of labor, and, of course, under the law, we cannot give up collective bargaining and the right of the President to cancel or modify codes, orders and agreements.

I am signing an order today which carries these principles into effect as to some of the so-called service industries. To put it simply: No matter where he is located, no member of any such service industry, as shall have previously been designated by the Administrator, may fly the Blue Eagle, unless he is living up to the present Code provisions governing child labor, maximum hours, minimum wages and collective bargaining. But trade practices shall be required as a condition of flying the Blue Eagle in these designated service industries only in particular localities in which at least 85 percent of the members there have proposed, as a local code of fair trade practice, a schedule of such practices. If the Administrator approves of any such proposed local code then no member in that locality may fly the Blue Eagle unless, in addition to complying with the Code provisions governing child labor, maximum hours, minimum wages, and collective bargaining, he also is complying with this local compact on trade practices.

The display of the Blue Eagle by any employer is notice to the people of the United States that he is dealing fairly with his workers in accordance with the letter and spirit of the Recovery Program, that he is not taking advantage of child labor and that he is living up to the prescribed high responsibility to the public and to his competitors. The absence of a Blue Eagle indicates that the employer has omitted or refused to adopt some of these standards and to cooperate with the Government and his economic and actual neighbors in trying to bring about a better day.