Franklin D. Roosevelt

Statement on Conference with Congressional Leaders after Supreme Court Decision on N.R.A.

June 04, 1935

In order to meet an immediate problem relating to the Executive branch of the Government as a result of the Supreme Court decision, two steps have been discussed and agreed to by members of the Administration and leaders of Congress.

I (a) Passage by the House of Representatives of the Senate Joint Resolution extending the life of the National Recovery Administration only to April 1, 1936. The President has made this recommendation to the Speaker, Chairman Doughton of the Ways and Means Committee and Chairman O'Connor of the Rules Committee this afternoon. This recommendation is based on the desirability of maintaining a comparatively small staff in Washington and in the more important centers of the country, in order to bring together and summarize the vast amount of information now in the possession of N.R.A., relating to the actual results of Code Administration, and to collect information in regard to the effects on industry, both on employers and employees, of the abandonment by the Government of code enforcement or requirements. These latter refer to working conditions and to fair trade practices. This information will, it is believed, be of great value to the Congress, the Administration and the country as a whole.

(b) The other reason for continuing a skeleton organization of N.R.A. is that such an organization will be useful in carrying out the proposed requirement that Government purchases and contracts be placed only with corporations or contractors who live up to certain minimum requirements.

(c) If the House of Representatives approves the Joint Resolution passed by the Senate, that portion of the Resolution which in effect relates to codes will, of course, be inoperative in so far as the old codes are concerned.

(d) The extension of the National Recovery Administration would mean, without question, a very large cut in the officers and employees now attached to N.R.A., but would mean the retention of a substantial number of them.

"In this connection," the President said, "I want to record my deep appreciation and that of the country for the unselfish work· which thousands of men and women employed under or in conjunction with the National Recovery Administration, have done in the past two years. I extend to them my sincere thanks; and I regret that circumstances under which the retirement of many of them from Government service becomes obligatory."

It should not be assumed by any person that this proposed continuation of the National Recovery Administration, in skeletonized form, relates in any way to the enforcement of working conditions or fair trade practices formerly existing under the codes. All such requirements were eliminated by the Supreme Court decision.

II The other measure which, like the first, must be considered as only a very partial stop-gap relates to Government contracts. Only a very small portion—probably not much over 1 percent of the industrial production of the country—is used in Government work. Nevertheless, the President feels that even though the percentage be small, the Government should take a practical and definite step to show its good faith in maintaining the larger objectives sought by N.R.A. The proposed legislation would authorize a requirement in every Government purchase that all persons engaged in the production of the supplies or in the carrying out of the contract shall be paid in accordance with minimum wage and maximum hour standards and that no person under the age of sixteen years shall be employed. The same rule would apply to the use of Government loans or grants to States, municipalities or other local government agencies.

It is believed that this proposed bill carries out a moral responsibility of the Federal Government and it is hoped that such action will be followed as largely as possible by private industry in every one of its branches.

This proposed measure, however, like the first, does not make much progress toward obtaining the ultimate objectives of national standards for the working population of America nor for national standards which seek to protect honorable employers against the unfair practices of less honorable competitors.

III The Supreme Court decision has affected a number of agencies which were set up in part or in whole under the authority of Title I of the National Industrial Recovery Act. A careful review of the effects of the Supreme Court decision has been made.

(a) New legislation would be necessary for the continuance of the Federal Alcohol Control Administration, for the Electric Home and Farm Authority, for the Petroleum Administrative Board and the Central Statistical Board. Legislation to meet these four ends is now under consideration.

(b) Two agencies can be continued by amendments to Executive Orders: The National Emergency Council and the National Resources Board. Both of them relate to planning for and execution of work relief and can, therefore, be continued under the Work Relief Act.

(c) Three agencies have completed their work and will be terminated as heretofore planned on June 16th—the Committee on Economic Security, the Advisory Council on Economic Security and the Office of the Special Adviser to the President on Foreign Trade.

(d) Seven labor boards created under N.R.A. must terminate in their present capacity. They are: The National Labor Relations Board, the Petroleum Labor Relations Board, the Steel Labor Relations Board, the Textile Labor Relations Board, the Work Assignment Board for Cotton, the Work Assignment Board for Silk, and the Work Assignment Board for Wool.

The President has, however, sent to the Speaker of the House of Representatives a supplemental estimate of appropriations for the Department of Labor for the coming fiscal year in the sum of $600,000. This will enable the Secretary of Labor to conduct additional mediation and conciliation activities and thus take over a small portion of the work of the boards which are abolished. It is worth noting, however, that the authority of the Department of Labor extends only to mediation and conciliation. The Wagner Labor Bill, if enacted, would set up new tribunals which would substantially cover the functions heretofore exercised by the various boards above mentioned.

Franklin D. Roosevelt, Statement on Conference with Congressional Leaders after Supreme Court Decision on N.R.A. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/208717

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