Monday, Oct. 30, 1933

Penalties

From the White House last week came a set of sharp teeth for the Blue Eagle (see cut). President Roosevelt, invoking the power vested in him by Section 10 (A) of the Recovery Act, issued an executive order providing a penalty of $500 fine or six months imprisonment or both for anyone "falsely representing himself to be discharging the obligations or complying with the President's Re-employment Agreement or of any code of fair competition."

Week before, Administrator Hugh Samuel Johnson had "cracked down" on a Gary, Ind. roadhouse proprietor, a market owner and beautician of New Rochelle, N. Y., a Lowell, Mass, restaurateur and a Chelsea, Mass, dry cleaner. For violating wage and working time agreements, they were ordered to surrender their NRA insignia to their local postmasters. Under the President's order, General Johnson was now empowered to jail and fine such offenders, to "prescribe such rules and regulations as he may deem necessary to . . . carry out the purposes and intent . . . of this order." General Johnson's first prescription emphasized that small merchants and other employers operating under blanket, temporary codes were just as liable to prosecution as those who had signed permanent codes.

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