Executive Order 7194—Establishment of the Prison Industries Reorganization Administration

By virtue of and pursuant to the authority vested in me by the Emergency Relief Appropriation Act of 1935, approved April 8, 1935 (Public Resolution No. 11, 74th Congress), I hereby establish an agency within the Government to be known as the "Prison Industries Reorganization Administration."

The governing body of said Prison Industries Reorganization Administration shall be a Prison Industries Reorganization Board consisting of five members to be hereafter appointed by the President and to hold office at his pleasure. The Prison Industries Reorganization Board is hereby authorized to prescribe such rules and regulations and to delegate to its agents and representatives such powers as, in its discretion, it shall deem necessary and proper for the performance of the duties and functions of the Prison Industries Reorganization Administration and for effectuating the purposes of this Order.

I hereby prescribe the following duties and functions of the said Prison Industries Reorganization Administration:

(1) In cooperation with the proper authorities of the several States and the political subdivisions thereof and the District of Columbia:

(a) To conduct surveys, studies, and investigations of the industrial operations and allied activities carried on by the several penal and correctional institutions of the States and political subdivisions thereof and the District of Columbia, and the actual and potential markets for products of such industrial operations and activities.

(b) To initiate, formulate, and recommend for approval of the President a program of projects with respect to replanning and reorganizing the existing prison industries systems and allied prison activities of the several State and political subdivisions thereof and the District of Columbia to the end that the industrial operations and activities of such institutions may be so reorganized as to relieve private industry and labor of any undue burden of competition between the products of private industry with the products of such institutions; and to eliminate idleness and to provide an adequate and humane system of rehabilitation for the inmates of such institutions.

(2) To recommend for the approval of the President loans or grants, or both, to the several States and political subdivisions thereof and the District of Columbia necessary to accomplish the purposes of this Order, and to administer and supervise the program of projects approved by the President.

In the performance of such duties and functions the Prison Industries Reorganization Board is hereby authorized to employ the services and means mentioned in subdivision (a) of section 3 of the said Emergency Relief Appropriation Act of 1935, to the extent therein provided, and, within the limitations prescribed by said section, to exercise the authority with respect to personnel conferred by subdivision (b) thereof.

The acquisition of articles, materials, and supplies for use in carrying out any project authorized by this Executive Order shall be subject to the provisions of Title III of the Treasury and Post Office Appropriation Act, fiscal year 1934 (47 Stat. 1489, 1520).

For administrative expenses of the Prison Industries Reorganization Administration there is hereby allocated to the Administration from the appropriation made by the Emergency Relief Appropriation Act of 1935 the sun of $100,000. Separate allocations will be made hereafter for each of the authorized activities as may be needed.

FRANKLIN D. ROOSEVELT

The White House,
September 26, 1935.