Statement on Voluntary Agreements under N.I.R.A.

The White House announced that, to assist industry in taking advantage of the suggestion of the President as to the use of the opportunities afforded by the National Industrial Recovery Act for voluntary agreements under N.I.R.A., the President had by Executive Order No. 7192 of September 26, 1935, delegated to the Federal Trade Commission authority to approve certain trade practice provisions contained in voluntary agreements submitted pursuant to Section 4 (a) of Title I of said Act.

In a letter of August 24, 1935, to Senator Harrison and Chairman Doughton the President said:

"Pending determination by the Congress of whether further industrial legislation will be enacted, it is hoped that industrial groups will, in increasing numbers, avail themselves of the provisions of the Joint Resolution extending National Industrial Recovery Administration which permit agreements (1) putting into effect the requirements of Section 7 (a), minimum wages, maximum hours and prohibition of child labor, and (2) prohibiting unfair competitive practices which offend against existing law. Such agreements, when approved by the President, as to matters covered by the Joint Resolution, are exempted expressly from the penalties of the anti-trust laws, including criminal prosecutions, injunctions and treble damages. By such action, industry can undoubtedly do much to preserve the very substantial gains made while the codes were in effect. Applications for approval of such agreements should be filed with the Federal Trade Commission.

"Industry may continue to take advantage of the familiar trade practice conference procedure of the Federal Trade Commission."

The President has requested the Federal Trade Commission and the National Recovery Administration to cooperate in handling voluntary agreements under N.I.R.A. in the following manner:

1. All proposed agreements for voluntary industrial cooperation submitted under N.I.R.A., as extended, shall be filed at the office of the Federal Trade Commission. If in addition to provisions for collective bargaining, maximum hours, minimum wages, etc., as required by Section 7 (a) of N.I.R.A., any such agreement also contains trade practice provisions covered by numbered clause 2 of the proviso of Section 2 of the Joint Resolution extending N.I.R.A., each of the two classes of provisions shall appear in a separate title....

The proponent of any such proposed agreement for voluntary industrial cooperation may file simultaneously therewith, at the office of the Federal Trade Commission, any other provisions, viz., provisions not entitled to exemptions under either numbered clause 1 or numbered clause 2 of the proviso of Section 2 of the Joint Resolution extending N.I.R.A., it being understood that such provisions are submitted for approval of the Commission under its trade-practice conference procedure.

2. Promptly upon the filing of a proposed voluntary industrial agreement with the Federal Trade Commission, the Trade Commission shall refer the title containing "labor provisions," to N.R.A. N.R.A. shall consider such proposed labor provisions through a mechanism similar to that which it has used in the past, including a Labor Advisory Unit and an Industrial Advisory Unit (set up in conference with the Department of Labor and the Department of Commerce, respectively), and the holding of open hearings. As a result of such procedure, N.R.A. shall in due course determine whether or not to recommend approval of the proposed "labor provisions."

3. Having made its decision, N.R.A. shall return such provisions and recommendations, supported by a transcript of the hearings and its findings of fact, to the Trade Commission.

4. Pending consideration of the labor provisions of the proposed voluntary industrial agreement by N.R.A., the Trade Commission shall examine such agreement to see whether it includes a title containing trade-practice provisions covered by numbered clause 2 of the proviso of Section 2 of the Joint Resolution extending N.I.R.A. If the agreement contains such title the Commission shall proceed after notice, hearings and other procedure duly had to determine whether or not to approve or disapprove the same. If its determination shall be in favor of disapproval, the Commission shall forthwith make an order to such effect under authority delegated to it by Executive Order No. 7192 of September 26, 1935, and specifically refer to such Executive Order. If the Commission shall favor approval of such trade-practice provisions, the Commission shall transmit to the President the labor provisions and recommendation of N.R.A., if favorable, together with a statement as to the Commission's approval of the other provisions of the agreement, for the President's action on the labor provisions. The Commission shall await receipt from the President of notification of his action upon the labor provisions of such agreement and upon notification of such approval shall make an order approving such trade-practice provisions under the authority delegated to it by the said Executive Order No. 7192, and specifically referring to such Executive Order. After approval by the President and the Federal Trade Commission, the agreement shall become binding upon the parties thereto in accordance with its terms. If the Commission shall be notified by the President that he has disapproved the labor provisions of such agreement, the proponents shall be at liberty to request the Commission to consider such trade-practice provisions under its trade practice conference procedure as herein below mentioned or to withdraw the same. . . .