-40-


 may establish basic rates for the more
 skilled classes of employees.

 Proposed Code: Article VI Administration provides
 Code Authority of eleven (I1) to be
 selected by various associations.

Approved Code: Article VI Administration provides eleven
 (11) selected from industry:

 5 by Associated
 2 by National Associption
 2 by Industrial Council
 1 by Midwest Association
 1'.by"Pacific.Coart: .Manifacturers
 1 by Labor Advisory Board.

 Trade Practice Provisions were essentially the same.

 It will be noted that the "age provisions uonroved were a com-
promise and as already stated became a fester s-pot and -orovocative of
great dissension and widened the rift between lbor and manufacturer.

 It will also be noted that representation provided in Article
VI of approved code is auite different from the one contained in draft
used at the public hearing and revised immediately thereafter (Exhibit
A, part 7, page 6; part 8, page 4.)

 The Code was approved by the various Boards without comment
except that of Research and Planning. Mr. James P. Davis of that
Board pointed out that since the establishment of classified wage
scales under codes is contrary to Administration -oolicy it would seem
wise to eliminate this provision.'
 *
 He further points out that the discount provision might be the
cause of much criticism unless it conforms closely with the well es-
tablished practice of the industry.

 (See Exhibit E paragraph "Comnents Section 2", Section 12)

 It was forwarded by Deputy Earl Dean Howard iiarch 5, 1934
to the Administrator for his approval.

 3. Date of Aopproval

 The Code was approved March 14, 1934 under Admin-
 istrative Order 332-1 and became effective under Article
 XII of the Code on the second Monday after approval by
 the President.

 4. Conditions in Order of Ap-oroval: Industry Reaction

 The Order of Approval provided:
 "1. That Section 2 of Article IV be stayed until


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