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Full text of "Codes of fair competition as approved [June 16, 1933]-July 30, 1935 : with supplemental codes, amendments, executive and administrative orders issued between these dates."

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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial BecoTery 



CODES OF FAIR COMPETITION 

Nos.1— 57 '^^ 
AS APPROVED 

BY 

PRESIDENT ROOSEVELT 

JUNE 16-OCTOBER 11, 1933 

WITH SUPPLEMENTAL CODES, AMENDMENTS, AND 

EXECUTIVE ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME I 




WE DO OUR PART 



?^•^^^ 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 






MAY 26 193S 



CharspD to credit acct 
with Supf. of Oocuroenb 



CONTENTS 



Industry 



Date Ap- 
proved, 
1933 



CODES OF FAIR COMPETITION 

Cotton Textile 

Shipbuilding and Ship Repairing 

Wool Textile 

Electrical Manufacturing 

Coat and Suit 

Lace Manufacturing 

Corset and Brassiere 

Legitimate Full Length Dramatic and Musical The- 
atrical 

Lumber and Timber Products 

Petroleum 

Iron and Steel 

Photographic Manufacturing 

Fishing Tackle 

Rayon and Synthetic Yarn Producing 

Men's Clothing 

H osiery 

Automobile Manufacturing 

Cast Iron Soil Pipe 

Wall Paper Manufacturing 

Salt Producing 

Leather 

Motion Picture Laboratory 

Underwear and Allied Products Manufacturing 

Bituminous Coal 

Oil Burner 

Gasoline Pump Manufacturing 

Textile Bag . 

Transit .' 

Artificial Flower and Feather 

Linoleum and Felt Base Manufacturing 

Lime 

Knitting, Braiding, and Wire Covering Machine 

Retail Lumber, Lumber Products, Building Materials, 

and Building Specialties 

Laundry and Dry Cleaning Machinery Manufactur- 
ing 1 

Textile Machinery Manufacturing 

Glass Container 

Builders Supplies Trade 

Boiler Manufacturing 

Farm Equipment 

Electric Storage and Wet Primary Battery 

Women's Belt 

Luggage and Fancy Leather Goods 

Ice 

Boot and Shoe Manufacturing 

Saddlery Manufacturing 

Motor Vehicle Retailing Trade: 

Bankers . 

Silk Textile 

Optical Manufacturing 

Automatic Sprinkler 

Umbrella Manufacturing 

Mutual Savings Banks 

Handkerchief 

Throwing 

Compressed Air 

Heat Exchange 

Pump Manufacturing 



(III) 



July 9 
July 26 
July 26 
Aug. 4 
Aug. 4 
Aug. 14 
Aug. 14 



Aug. 16 
Aug. 19 
Aug. 19 
Aug. 19 
Aug. 19 
Aug. 19 
Aug. 26 
Aug. 26 
Aug. 26 
Aug. 26 
Sept. " 
Sept. 
Sept. 
Sept. 
Sept. . 
Sept. 18 
Sept. 18 
Sept. 18 
Sept. 18 
Sept. 18 
Sept. 18 
Sept. 18 
Sept. 18 
Oct. 3 
Oct. 3 



Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 

Oct. 11 

Oct. 11 

Oct. 11 

Oct. 11 



1 
25 
33 
43 
61 
59 
69 

81 
95 
147 
171 
209 
217 
223 
229 
239 
251 
259 
267 
277 
287 
299 
309 
323 
339 
349 
361 
371 
381 
389 
397 
411 

417 

437 
449 
457 
469 
481 
489 
499 
511 
519 
529 
541 
551 
563 
575 
587 
599 
605 
613 
623 
629 
643 
653 
663 
673 



TV 



CONTENTS— Continued 



Date, 
1933 



ACT OF CONGRESS 
National Industrial Recovery Act 



AMENDMENTS AND REVISIONS 

Shipbuilding and Shiprepairing (amendment no. 1) 

Bituminous Coal (revision) 

Oil Burner Industry (amendment) 

Lumber and Timber Products Industry (amendments nos. 1 
and 2) 



EXECUTIVE ORDERS 

Appointment of Administrator and Special Industrial Recovery 
Board 

Delegation of certain functions and powers to Secretary of 
Agriculture 

Prohibition of transportation in interstate and foreign com- 
merce of petroleum and the products thereof unlawfully pro- 
duced or withdrawn from storage 

Prohibition of transportation in interstate and foreign com- 
merce of petroleum and the products thereof unlawfully pro- 
duced or withdrawn from storage (with authorization) 

Authority granted to Administrator to stay application of codes 
within 10 days after effective date 

Textile Finishing Industry temporarily placed under Cotton 
Textile Industry Code 

Underwear and Allied Products Industry temporarily placed 
under Cotton Textile Industry Code 

Temporary approval given to certain section of a submitted 
code of fair competition for the Silk and Rayon Dyeing and 
Printing Industry 

Temporary approval given to certain provisions of a code of 
fair competition to be submitted by national association of 
hosiery manufacturers 

International Association of Garment Manufacturers tem- 
porarily placed under Cotton Textile Industry Code 

National Council of Pajama Manufacturers temporarily placed 
under the Cotton Textile Industry Code 

Appointment of Central Statistical Board 

Cordage and Twine Industry temporarily placed under the 
Cotton Textile Industry Code 

Denial of application of Crystal Springs Bleachery for exemp- 
tions from the Cotton Textile Industry Code 

Denial of application of Dwight Manufacturing Co. for ex- 
emptions from the Cotton Textile Industry Code 

Denial of application of Alabama Mills Co. for exemptions 
from the Cotton Textile Industry Code 

Compliance by Government contractors with approved codes 
of fair competition 

Administration of the Petroleum Industry given to Secretary 
of the Interior 

Denial of application of Connecticut Garment Manufacturers 
Association for exemptions from the Coat and Suit Industry 
Code 



June 16 



Oct. 10 
Sept. 29 
Oct. 3 

Oct. 9 



June 16 

June 26 

July 11 

July 14 

July 15 

July 21 

July 21 

July 22 



Denial of application of Gem-Dandy Garter Co. for exemp- 
tions from the Corset and Brassiere Industry Code 

Appointment of Hugh S. Johnson to serve temporarily as 
member of each code authority 

Modification of President's Reemployment Agreement 

Denial of application of Associated Cloak and Suit Manu- 
facturers of Portland, Oreg., for exemptions from the Coat 
and Suit Industry Code 



July 


26 


July 


26 


July 
July 


26 

27 


July 


27 


Aug. 


4 


Aug. 


4 


Aug. 


4 


Aug. 


10 


Aug. 


29 


Sept. 


7 


Sept. 


18 


Sept. 
Oct. 


29 
11 



Oct. 11 



CODES OF FAIR COMPETITION 



Approved Code No. 1 
CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

As Approved on July 9, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

The Cotton Textile Code, a stenographic transcript of the hearing 
thereof, a report and recommendations of the National Recovery 
Administration thereon, (including a special statistical analysis of 
the industry by the Division of Planning and Research) and reports 
showing unanimous approval of such report and recommendations by 
each, the Labor Advisory Board, the Industrial Advisory Board, and 
the Consumers' Advisory Board, having been submitted to the 
President, the following are his orders thereon. 

In accordance with Section 3 (a). National Industrial Recovery 
Act, the Cotton Textile Code submitted by duly qualified trade 
associations of the Cotton Textile Industry on June 16, 1933, in full 
compliance with all pertinent provisions of that Act, is hereby 
approved by the President subject to the following interpretations 
and conditions : 

(1) Limitations on the use of productive machinery shall not apply 
to production of tire yarns or fabrics for rubber tires for a period of 
three weeks after this date. 

(2) The Planning Committee of the Industry, provided for in the 
Code, will take up at once the question of employee purchase of homes 
in mill-villages, especially in the South, and will submit to the 
Administration before January 1st, 1934, a plan looking toward 
eventual employee home-ownership. 

(3) Approval of the minimum wages proposed by the Code is not 
to be regarded as approval of their economic sufficiency but is granted 
in the belief that, in view of the large increase in wage payments 
provided b}^ the Code, any higher minima at this time might react to 
reduce consumption and employment, and on the understanding that 
if and as conditions improve the subject may be reopened with a view 
to increasing them. 

(4) That office employees be included within the benefits of the 
Code. 

(5) The existing amounts b}^ which wages in the higher-paid 
classes, up to w^orkers receiving $30 per week, exceed Avages in the 
lowest j^aid class, shall be maintained. 

(6) While the exception of repair shop crews, engineers, elec- 
tricians and watching crews from the maximum hour provisions is 

(1) 



approved, it is on the condition that time and one half be paid for 
overtime. 

(7) While the exception of cleaners and outside workers is ap- 
proved for the present, it is on condition that the Planning and 
Supervisory Committee provided by Section 6 prepare and submit to 
the Administration, by January 1, 1934, a schedule of minimum 
wages and of maximum hours for these classes. 

(8) It is interpreted that the provisions for maximum hours 
establish a maximum of hours of labor per week for every eTnployee 
covered, so that under no circumstances will such an employee be 
employed or permitted to work for one or more employers in the 
industry in the aggregate in excess of the prescribed number of hours 
in a single week. 

(9) It is interpreted that the provisions for a minimum wage in 
this code establish a guaranteed minimum rate of pay per hour of 
employment regardless of whether the employee's compensation is 
otherwise based on a time rate or upon a piece work performance. 
This is to avoid frustration of the purpose of the code by changing 
from hour to piece-work rules. 

(10) Until adoption of further provisions of this Code necessary 
to prevent any improper speeding up of Avork to the disadvantage of 
employees (" stretch-outs ") and in a manner destructive of the 
purposes of the National Industrial Recovery Act, it is required that 
any and all increases in the amount of work or production required 
of employees over that required on July 1, 1933, must be submitted 
to and approved by the agency created by section six of the code and 
by the administration and if not so submitted such increases will be 
regarded as a prima facie violation of the provision for minimum 
wages. 

(11) The code will be in operation as to the whole industry but, 
opportunity shall be given for administrative consideration of every 
application of the code in particular instances to any person directly 
affected who has not in person or by a representative consented and 
agreed to the terms of the code. Any such person shall be given an 
opportunity for a hearing before the Administrator or his repre- 
sentative, and for a stay of the application to him of any provision of 
the code, prior to incurring any liability to the enforcement of the 
code against him by any of the means provided in the National 
Inclustrial Recovery Act, pending such hearing. At such hearing 
any objection to the application of the code in the specific circum- 
stances may be presented and will be heard. 

(12) This approval is limited to a four months' period with the 
right to ask for a modification at any time and subject to a request 
for renewal for another four months at any time before its 
expiration. 

(13) Section 6 of the Code is approved on condition that the 
Administration be permitted to name three members of the Planning 
and Supervisory Committee of the industry. Such members shall 
have no vote but in all other respects shall be members of such 
Planning and Supervisory Committee. 

FRANKLIN D. ROOSEVELT. 
The White House, 

July 9, 1933. 



July 9. 1933. 
To the President: 

I. Preliminary Statement 

I have the honor to submit herein my report on the Cotton Textile 
Code and hearing submitted and conducted in accordance with the 
provisions of the National Recovery Act. 

There is attached hereto : 

Exhibit 1. The Code as finally proposed. 

Exhibit 2. Notice of Hearing. 

Exhibit 3. Statement of Procedure. 

Exhibit 4. Economic and Statistical Analysis of the Code and of 
the Industry, prepared by the Division of Research and Planning of 
this Administration, conducted by Dr. Alexander Sachs. 

Exhibit 5. Transcript of the Record. 

Appendix 1. List of Witnesses. 

II. The Code and the Hearing (Uncontro verted Matter Omitted) 

The Code may be summarized as follows : 

Section 1. De-finitions. — ^This is the Spinning and Weaving divi- 
sion of the Cotton Textile Industry. The only controverted matter 
in this section was a definition of " productive machinery " as cotton 
looms and spindles. The question of the validity of excluding card- 
ing machines as auxiliary was raised by President McMahon, of the 
United Textile Workers, and was justified by Mr. Robert Amory 
that inasmuch as the product of the card is not sold it cannot lead 
to overproduction yet the flexibility of running it is necessary to 
balance the mill's operation (II-K-8-M-2). Mr. Batty, Secretary, 
New Bedford and Fall River Textile Councils (Labor) concurred 
that this was an. unsubstantial objection. 

Sec. 2. Proposes a minimum wage of $12 in the South and $13 in 
the North — exempts learners for six weeks, also cleaners and outside 
employees. 

Sec. 3. Provides for a 40-hour work week and an 80-hour machine 
work week and excepts repair crews, engineers, electricians, firemen, 
office and supervisory staff, shipping, watching, and outside crews 
and cleaners. 

Sec. 4. Abolishes child labor (minors under 16). 

Sec. 5. Provides for periodical statistical reports from all mem- 
bers of the Cotton Textile Institute, bearing on wages, hours, pro- 
duction, and consumption, etc. 

Sec. 6. Sets up as a continuing planning and fair-practice agency 
the Cotton Textile Industry Committee of all the affected trade asso- 
ciations to supervise the execution of the code, to develop statistical 
accounting, credit, and other controls, and to carry out long-range 

Note. — References in parentheses refer to Transcript of Hearings. 

(3) 



planning in the interest of the industry and the stabilization of em- 
ployment. This is the proposed self-government agency of the 
industry, to function subject to the approval of the Administration. 

Sec. 7. Provides that the Committee may tender its good offices to 
secure, by mediation, modifications of existing contracts rendered 
burdensome by costs increased by this code. 

Sec. 8. Mandatory statutory recitation of the Rights of Labor. 
. Sec. 9. Mandatory statutory recitation of the President's right to 
cancel, modify, or amend. 

Sec. 10. Provides for consideration by the President of future 
amendments at the instance of the industry. 

This code was formulated during the Congressional debate on the 
Recovery Act by conference among representatives of the industry, 
with unofficial assistance of the present Administrator's aides. It 
was submited the day the President signed the Act. After due legal 
published notice the hearing opened on June 27th and concluded 
July 1st. 

The hearing was presided over by the Administrator and conducted 
by Deput}^ Administrator William H. Allen with the aid of members 
of the staff of the National Recovery Administration in the presence 
of the Industrial Advisory Board, appointed by the Secretary of 
Commerce, the Labor Advisory Board, appointed by the Secretary 
of Labor, and the Consumers' Advisory Board, appointed by the 
Administrator. Representatives of the Department of Justice and 
the Federal Trade Commission were also in attendance. The hear- 
ing was attended by considerable nurnbers (about 500) of the public 
and a full press complement. 

The code was presented by duly qualified representatives of the 
industry after due qualifications of its proponents complying with all 
statutory requirements as representing 75% of the capacity of the 
industry. In accordance with announced procedure, every person 
who had filed an appearance, whether as a worker, employer, or con- 
sumer, was freely heard in public, including a representative of a 
Communist organization. 

All statutory and regulatory requirements were complied with. 

III. Summary of and Conclusions on the Evidence 

1. Hovnr-s of Labor. (Proposed Reduction of Weekly Hours to 40.) 
President McMahon, of the United Textile Workers of America, 
affiliated with the American Federation of Labor (who had partici- 
pated in the formulation of the code and had concurred in it before 
submission) submitted at the hearing amendments to his original 
statement and to the code and urged that the hours of work be limited 
to 35 instead of the proposed 40, in order to bring about a reabsorp- 
tion of the unemployed of the industry (II-H 3 ff. ; 1-7-11; J-1 ff). 
President Green of the American -Federation of Labor went further 
and asked for a 30-hour week on the ground that " the work available 
at the May level in industry generally would provide only 25.6 hours 
per week for all who needed work," and that it was, therefore, best 
to arrange a single standard, presumably regardless of differences 
between industries as to rates of activity and employment (State- 
ment, p. 6; Record III-S-9, III-S-11). JBoth testified to the preva- 
lence in the past year of as high as a 53-to-54-hour week for the indus- 



trj^ and suggested as an objective the bringing up of the employment 
to the level which prevailed in the period from 1923 to 1929 when 
approximately 450,000 persons were engaged in the industry as com- 
pared with the May 1933 rate given by Mr. Green as around 350,000 
on 48 hours a week (Kecord III-I-7; statement of Mr. Green, page 6; 
EecordIII-I-5). 

The isolated figures cited by Mr. McMahon and Mr. Green as to 
numbers employed and hours reflecting conditions as of varying dates 
in the past half year were all based upon official government and other 
public sources. Hence, the issue resolves itself into a statistical one of 
determining the necessary and feasible hours and shifts for handling 
the present level of cotton textiles production and taking care of the 
seasonal fluctuations and spurts in demand for the products of the 
industry. An exhaustive analysis of this sort was carried out by our 
Kesearch and Planning Division (Dr. Sachs), and the results thereof, 
submitted in the course of the hearing to President Green of the 
American Federation of Labor and to Dr. Wolman of the Labor Ad- 
visory Board, were uncontroverted by the former and concurred in 
by the latter. 

Briefly, in the course of the depression, employment in the Cotton 
Textile Industry has declined from 425,000 in 1929 to a low mark in 
March of this year of 314,000, or 26%. Since then, under the im- 
petus of the recovery policies of the Government, this industry, like 
other consumers goods industries, has been enjoying a sharp revival, 
with rising employment, having reached 346,000 for the month of 
May, and around 400,000 in June. 

With productive operations in June around the 1929 level, and this 
month above it, it is clear that hours and shifts should be so fixed as 
to allow a general average of production at least as high as 1929. In 
that year there were processed 3,370,000,000 pounds of cotton, or 5% 
below the peak year of 1927. This was at the rate of 65,700,000 
pounds per full working week, taking the working year as 51.3 work- 
ing weeks. The labor required in 1929 to process the 65,700,000 
pounds of cotton was in man-hours 20,600,000 for an effective working 
week of 49 hours. Under the proposed code, limiting the week to 40 
hours, the efl^ective average working week, allowing for those manufac- 
turers who will not be able to obtain the maximum, would be 39 hours. 
Hence, dividing the 20,600,000 man-hours by the 39 effective hours 
yields 528^00^ as the emfloyees reqvdred for frodwaing an awerage 1929 
weekly level of cotton production. In other words, the JfO-hour liniit 
would not only call hack to work those w^ho 'became uneuhployed since 
1929, but would call for 13% more employees than the average in the 
peak year of 1927 when J{.67fi00 were employed. It is furthermore 
noteworthy that this computation only provides for the 1929 aver- 
age and does not make any allowance whatsoever for the seasonal 
peaks or sudden spurts of demand which according to the experience 
of the past decade may well carry production from 10 to 20% above 
any apparently well-established level. To provide for such a 15% 
spurt above the normal at any given period would require the full 
utilization of the 10 to 15% increase in labor efficiency that has 
developed in the depression under conditions of the very long hours 
which have obtained hitherto. Accordingly, the industry under the 
Ifi-howr week loould presently absorb the avaiJahle corps of textile 
workers and assuming a continuation of the present trend would pro- 



vide openings for unemployed fr^om related or nearby industries^ 
whose absorption w^ouid^ according to Mr. Batty of the Nem Bedford 
Textile Gowndl^ require a very considerable apprenticeship. On the 
data submitted and on the basis of the present requirements of the 
industry, the reduction in the working week to forty hours will 
effect the re-employment of the hitherto unemployed and permit the 
substantial absorption from the outside of a potential 15 to 25% em- 
ployment over and above the predepression level. 

It must be kept in mind that there is nothing static about such 
conclusions. Should there be a marked recession in production the 
question of hours would have to be reconsidered. For this and 
other reasons hereinafter set forth approval should be limited to a 
four months' period. 

2. Limit on machine hours. 

The provision in the code to limit the operation of productive ma- 
chinery to two shifts a week of forty hours each was vigorously sup- 
ported by representatives of the industry as a means of preventing 
overproduction and unemployment and as a means of aiding the large 
number of small mills which lack the resources for more than two 
forty-hour shifts and which otherwise would be at a competitive dis- 
advantage in meeting increases in labor costs resulting from the code. 

Certain labor representatives appeared not to be concerned about a 
limitation in shifts. Mr Green stated, " If necessary to work two 
shifts, or three shifts, or even four, I think that should be permitted," 
(III-T-1), but ended up (III-W-4) by declaring that he was "not 
fundamentally opposed to the regulation of the hours of machines." 
A similar position was taken by Mr. Frey (III-Y-3), though the 
burden of his testimony as to the widening gap even before the de- 
pression between increasing labor productivity and inadequate mass- 
purchasing power tended to throw into relief the importance of 
controlling technological unemployment. 

The predominant view of the industry was that while less than the 
maximum of two shifts might easily cause shortages and lead to 
unreasonably high prices to the consumer, the needs of the country 
can be fully taken care of by two shifts, which are not likely to be 
utilized by more than half of the mills, thus avoiding the overproduc- 
tion involved in three shifts and the resulting migration and concen- 
tration of the business in special areas (l-F-8). The proposed limi- 
tation was also defended — by members of the industry — on social 
grounds as eliminating the use of the so-called '' grave-yard " shift. 

The strongest objection to the limitation of machinery came from 
representatives of outside but overlapping industries and companies 
which carry on cotton textile production as an integrated part of 
other manufactures such as the tire fabrics and surgical supply in- 
dustries. Mr. Russell Watson, of Johnson and Johnson, favored 
three shifts in the interests of low prices for surgical dressings, of 
affording opportunity for the more efficient units of the industry 
(II-C, D-ff) and on the ground that limitations applied to his com- 
pany would throw some employees out of work. On the other hand, 
Mr. Kendall, who is engaged in the same business, declared that in 
an industry like textiles, an over-supply of production machinery 
coupled with unrestricted machine hours would not only make it 
difficult to bring about a reasonable equilibrium between consumption 
and production, but would seriously interfere with the reemployment 



of labor and the geographical distribution of that reemployment, and 
in addition would tend toward monopoly by the concentration of the 
production in a few efficient plants (II-G-11, 13). 

The same issue arose in respect of the application made by Mr. 
Stillman of the Goodyear Company in behalf of the so-called " Big 
Four " tire producers for exclusion of the tire fabric operations from 
the scope of the term "cotton textile industry" and so from the 
consequent limitation upon machine hours (I-Q-II, 11-1-5). A con- 
trary position was taken by Mr. Seiberling speaking for the non- 
integrated tire companies which obtain their fabrics from outside 
textile mills instead of their own subsidiaries as is the case with the 
" Big Four." It was estimated by him that the difference in cost of 
running an eighty-hour cotton-fabric mill against one running one 
hundred forty-four machine hours would be 6^ per pound or equiva- 
lent to 250 a tire which "■ is more (profit) per tire than the industry 
has made within the last three years " (I-S-2-5). This situation in 
his opinion, would " unquestionably tend to promote monopoly by 
the Big Four" (I-S-7). 

On these grounds, a request was made on behalf of all the manu- 
facturers of tires for a delay until September 1st in the application 
of the machine-hour provision of the code to spindles or looms pro- 
ducing tires, yarns, or fabrics (memoranda of Mr. C. A. Stillman) . 

In respect of the request for exemptions by the makers of surgical 
dressing units and similar requests involving the upholstery, drapery 
and knitwear units, it is clear that the granting of an exemption would 
place them in a privileged position and would discriminate against 
other units of the cotton-textile industry making the same or similar 
products. As that would contravene the provision in Section 3A of 
the Act against permitting " monopolies or monopolistic practices," 
it is recommended that these requests be denied. 

In respect to the production of tire yarn and fabrics, the cotton 
textile industry itself recognizes that owing to the elaborate machin- 
ery involved a violently sudden limitation might have a serious effect 
on the production and sale of automobiles and tires. It is therefore 
recommended that the interested tire companies present within two 
weeks after the approval of this code statistical evidence as to the 
need for limited exemption, and during those two weeks the pro- 
visions of the Code limiting the operation of productive machinery 
should not apply to spindles, looms, or production of tire yarns or 
fabrics, and that at the end of three weeks a final decision on this 
exemption be made by the Administration. 

In respect of limitation of machinery hours of the industry as a 
whole, the testimony of the workers (particularly III-R-2) and the 
employers (particularly II-B-1) is eloquent of the danger and distress 
from overproduction in the fact of the admitted excessive capacity 
in the industry. The comparisons given in the report of the Direc- 
tor of the Division of Research and Planning between textile and 
cotton goods industries on the one hand, and general manufacturing 
on the other hand, disclose the prolonged depression of the industry 
even during the decade of the post-war prosperity for general manu- 
facturing. The industry has been consistently losing relative to 
manufacturing industry as a whole in values of product and, what is 
the most significant, in value added by manufacture, which is the 
difference between selling value and the cost of materials out of which 



29852 296-124 34- 



" mill margin " must be paid. Between 1923 and 1929 this margin 
or value added declined 15% as against a rise of 24% in all other 
manufactures. It would appear therefore that the causes of low 
wages lie largely in the general unprofitability of the industry and 
its inability to command a stable price for its products by reason of 
the overcapacity of the industry in terms of spindles (which have 
declined from thirty-seven million at the beginning of 1923 to thirty- 
one million and a half beginning 1933 with only 80% active even now 
at the present high level of activity)^ the overproduction in terms of 
hours and shifts and the lack of internal organization and coordina- 
tion looking towards a stabilization of production and consumption 
and employment. 

These considerations confirm the view of the industry that an 
eighty-hour limit on machine operations is necessary and should aid 
in the organization of the industry with a view to checking the 
accumulations of diseconomic surpluses (Report, Division of Research 
and Planning, Chapter I and Chapter V, Part 2). Such a limitation 
will not interfere with adequate opportunity for fair competition on 
the part of efficient producers for increasing the volmne of their pro- 
duction, nor will it interfere with the interests of consumers and 
workers. On the contrary the preservation of existing opportunities 
for employment and profitable operation and the protection of the 
industry against both undue market stimulation and undue market 
demoralization require control of machine hours and the working 
out of additional flexible controls for stabilizing the industry as a 
whole in the planning provisions of Section 6 of the Code. Especially 
in view of the instant tendency, which is clearly toward a new and 
dangerous overproduction, the prevention of dislocations in employ- 
ment and demoralizing market conditions warrants the machine-hour 
limits proposed in the code, and the approval of this provision is 
recommended. 

Another problem involving the working rate of machinery is the 
tendency to increasing the maximum machine load on employees, 
popularly called the " stretch-out system." This problem, recurrent 
in the statements of labor representatives, was dealt with in an address 
by Senator James F. Byrnes of South Carolina at the opening session 
of the hearing (IK-12-L-5). In pursuance of this, a committee was 
appointed by the Administrator, consisting of Mr. Robert W. Bruere 
as Chairman, and Mr. B. E. Geer, representing the industry, and 
Major Berry, representing labor, with their technical aids. In behalf 
of the industry Mr. Amory for the North and Mr. T. M. Marchant 
for the South are conducting inquiries and securing information for 
the "Stretch-out" Committee. Similarly the Department of Indus- 
trial Studies of the Institute of Human Relations at Yale University, 
is making available to the Committee the results of a study of the 
system in twenty representative mills. Meanwhile Messrs. Bruere 
and Geer are making a field trip into the cotton textile centers to 
conduct engineering studies and to hold a number of open hearings 
at which all parties at interest may express their minds. As a pre- 
liminary result of its work, the Committee has drawn up a proposal 
designed not only to check the possible tendency towards a too rapid 
introduction of the " stretch-out " which may be stimulated by the 
forty-hour week limitation, but also to provide a simple machinery 



by which the principle of consent and participation by labor may be 
effectuated. This proposal, summed up towards the end of this 
report, is recommended for approval. 

3. Wages. 

The original Code submitted on June 16th, proposed a minimum 
wage for a forty -hour week of $10 for the South and $11 for the North, 
which scale towards the end of the hearing, and upon intimation 
that such low figures could not be considered, was lifted to $12 and 
$13 respectively. 

The labor representatives in their criticism of the original proposed 
scale of minimum wages made reference to the very low levels of 
minimum wages prevalent in the industry. President McMahon in 
his statement in behalf of the United Textile Workers of America, 
submitted early in June, stated : " Today in several sections of our 
country, including the North, we have had personal contact with 
Textile Workers who, after a full working week, were compelled to 
appeal to public charities to supplement their earnings. Wages of 
$5 and $6 a week are coiivnion throughout the industry.'''' In his ted:i- 
mony at the hearing he protested against accepting $10 as an econom- 
ically sound wage for any worker regardless of degree of skill 
(Record II. 1.3) ; and proposed a minimum for the North of $14 in 
place of the old one that he had submitted of $12 (Record II. J-1). 
President Green, of the American Federation of Labor, set the 
average weekly wage in the Cotton Goods Industry, as of the month 
of May 1933, as $10.40 (III T-. T-8) and as of the recent past, in 1932. 
he said, " 12% of all men employed in the cotton rnills studied icere 
receiving wages which, afveraged helow $10 and in some cases heloio $S 
for a 53-6 J,, hour loeek. {Ill T.-5.) 

Speaking for the consuming public. Miss Lucy Mason, Secretary, 
National Consumers' League, joined with labor in urging a higher 
minimum but dismissed the fear expressed by certain labor repre- 
sentatives that the minimum wage might tend to become maximum : 
" The Consumers' League was the first proponent of minimum wage 
laws in this country, and it has been their experience that in America 
minimum wage rates do not tend to become the maximum, but 
establish bargaining power for the more skilled worker, and that the 
wages rise rapidly above the minimum (IV. H 1-7). 

Figures such as those stated by Mr. Green and others reflect very 
inadequately the extent of the declines that have taken place in the 
wages of the unskilled and the skilled, as well, by reason of the pro- 
gressive narrowing during the depression of the Avage differential for 
the skilled, and besides, the record for unskilled rates applies largely 
to certain of the more important mills whose wage level, particularly 
in the latter part of the depression, has been higher than that of the 
country as a whole. To meet the shortcomings of the wage rate data 
for this, as well as for other industries, as a basis for determining 
minimum wages, the Research Division secured from representative 
mills in the industry sample or illustrative pay rolls for North and 
South. These pay-roll records showed that minimum wages as of the 
low in March- April this year., applicahle to between 10% and 20% of 
the pay rolls., were in the neighhorhood of $8 to $8.50 for the South 
for a -fifty-hour week and $9 to $9.50 for the North for a forty-erght- 
hour work week. 



10 

111 attempting to aid in working out a proper minimum wage, this 
Administration sought to do something more than strive for a com- 
promise between opposing claims. The guiding thought was to effec- 
tuate the policy laid down in the President's statement upon signing 
the National Recovery Act, to wit : " The idea is simply for employers 
to hire more men to do the existing work and at the same time paying 
a living wage for the shorter Aveek." This policy sets as an objective 
and as a norm for the emergency at any rate the restoration of the 
purchasing power which the worker in the industry had prior to the 
depression. Now, in 1929, the average unskilled weekly wage in the 
North was $17.60 ($19.47 for male workers and $15.75 for female 
workers) . This average unskilled wage for the foi'ty -eight -hour lueek 
has in the course of depression declined to a recent low point of $11.76 
in April and $11.62 in January this vear (for male workers, $13.27- 
$13.15 for the respective months, and for female, $9.96 and $10.37). 
During the same period the decline in the cost of living as computed 
by our Division of Research has amounted to about 30%. Applying 
the progressive decline in living costs to the original $17.60 of 1929 
weekly earnings, we obtain as a " real " weekly earnings for May this 
year $12.16; that is, the present required dollars to give the 1929 
purchasing power. We haA'e to carry this idea of purchasing power 
wages one step further. For in a period of price increases living costs 
tend at first to lag behind the advance in the price level, which has 
followed in the wake of the end of the liquidity complex and deflation 
and the synthetic business and price recovery brought about since 
March of this year. 

To lift up and provide adequate purchasing power^ we should ad- 
just " real " wages to the moving treiul of prices and living costs,, else 
we shall he no more effective than trying to catch a train moving out of 
the station hy aiming for where the hack platform was when the train 
was standing still. There has already occurred an advance of between 
16% and 20% in certain comprehensive yet not too insensitive indices 
of wholesale prices. In general the cost of living changes about 6% 
for each 10% change in wholesale prices due to the inclusion of cer- 
tain relatively stable and slowly varying elements. It appears neces- 
sary then to anticipate and adjust for a Hse of 10% in the cost of 
living, which as of May 193S urns 69% of 1929 taken as 100. This 
gives the figure of $13:21 as the requisite average weekly wages for 
unskilled male and female loorkers in Northern mills to produce now 
on a forty-hour week the purchasing power which they had on a 
forty-eight-hour week in 1929. 

In applying this figure of $13 as the prospective purchasing power 
parity of the 1929 wage income of the unskilled, consideration should 
be given to certain geographical differentials in accordance with the 
last sentence of Section 7 (c) of the Act. The differential between 
North and South has developed in part from the practice of furnish- 
ing housing at much less than cost, far more common in the South 
than in the North. Evidence under this head was submitted by 
Colonel G. Anderson, of Macon, Georgia, whose figures indicate the 
saving per week per employee in a Southern mill village to be in the 
neighborhood of $2 (T.H-M). 

While there was some opposition to the differential as expressed, 
particularly by Mr. F. C. Dumaine of Amoskeag (IIB), Mr. Robert 
Amory, representing the Northern part of the industry, stated that 



11 

the differential was conceded by the North as warranted, not on the 
basis of living costs, but on the basis of saving in rents, and that the 
proposed exemption of cleaners and outside help would further oper- 
ate in favor of the South to meeting the difference where it is in 
excess of $1, inasmuch as such help is now paid in the North consid- 
erably higher than the proposed minimum (IIIHl-2). 

Notwithstanding the probable original justification for the erection 
by employers of mill villages there is something feudal and repugnant 
to American principle in the practice of employed-ownership of em- 
ployee homes. We must recognize existing realities, however, and it is 
therefore recommended that the existence of the regional differential 
of $1 per week in the minimum wage between the North and South 
should be for the present accepted, but it is hoped that, with the cre- 
ation of real industrial self government and improvement in the min- 
imum wage, an impetus will be given by employers to independent 
home ownership eventually looking toward home ownership by em- 
ployees and the conversion of the differential into a wage equivalent. 

Applying the proposed minimum of $13 for the North and $12 for 
the South, to the wage distribution pay rolls of typical mills, it has 
been calculated by the Division of Research that the average mill 
ivages throughout the country would he increased about 30%, and 
hours reduced over 25%. This proposed minimum wage was in turn 
tested from the point of view of management by relating it to the 
" mill-margin," that is to say, to the difference between the p7'ice of 
finished cotton goods per pound and the cost of raw materials inclu- 
sive of power. Being partially subject to adjustment by manage- 
ment (as opposed to raw material costs which are determined by 
outside forces) the " mill-margin " (under given conditions of 
material costs) is some measure of the extent to whicli a wage 
increase is supportable. 

While the proposed increased minimum wage and lower working 
hours will raise labor costs somewhat above the 50% ratio of wages 
to " mill-margin " that existed between 1923-29, there has recently 
occurred a marked improvement in mill-margin back to conditions of 
profitable operations. Therefore the increased wages could now be 
absorbed with only a small increase in price to the consumer. 

Our studies show, however, that any larger wage increase would 
require such a mark-up as might impair consumption and so react 
unfavorably on the President's whole reemployment policy. There 
is such a thing as taking too big a bite. This was an industry of low 
wages. We are increasing for certain mills unskilled rates enor- 
mously and total wage payments by about 20% and lowering hours 
over 25%. It is about the limit of present practicability. While 
it is not enough to produce the general effect at which we are aim- 
ing, as a practical matter, it should be accepted for the i^resent. As 
general purchasing power increases and as the industry gets the 
benefits Avhich it should reap from the wise self-government author- 
ized under the code, further adjustments can be made. 

Far from criticizing management for not proffering more at this 
time, the courage and cooperative spirit of this industry in coming 
forward ahead of all others is to be commended and, as will later be 
shown, these conclusions have the unanimous support and commenda- 
tion of the whole Labor, Consumers', and Industrial Advisory groups 
of this Administration. 



12 

4. Exceptions of certain classes. 

The exception of low-paid cleaners and outside employees frorm 
hour and wage provisions of the code were subjected to some criti- 
cism which seems legitimate (I-H-1; IV-E-1, flf. ; compare 111-0-5; 
lV-I-2 and 3; VI-C-7, ff.; II-G-1). The exception of learners for a 
six weeks' period from the wage scale is open to possible abuse and 
must be watched in administration (IV-1-12: 111-0-5: III-2-2, ff.; 
IV-K-6). 

The exception of office and supervisory staff from the hour pro- 
visions is inconsistent with the principle of the President's state- 
ment of June 16, 1933, which requires inclusion of the " white collar " 
class within all benefits of the Act, and an agreement to remedy this 
defect was reached. 

This code ajDplies minimum-wage provisions only to the lowest- 
paid classes of employees. The general theory is that the normal 
differentials in the higher grades of skilled labor will automatically 
be proportionately increased by economic pressure. Mr. William G. 
Batty, Secretary of the Massachusetts Textile Council^ however^ 
argued very persuasively that definite specifications for each pay 
grade are necessary to protect the higher classification of workers 
receiving more than the minimum code scales (III-A-5, ff.), but the 
administrative difficulty of promptly developing such scales is suffi- 
cient reason for not including them at this time. It is believed^ how- 
ever, that the President's approval should be conditioned on the 
understanding that existing differentials in the higher-paid grades 
shall be maintained (III-Q-7). 

The exception of repair-shop crews, engineers, electricians, fire- 
men, shipping and watching crews from the hour scale is subject to 
criticism which would be removed if such workers are guaranteed 
time and a half for overtime (III-S-1) (memorandum of Joseph S. 
-McDonald), and it is recommended that approval be so conditioned. 

It is recommended that the President direct the planning agency of 
the industry provided for in the code, to consider and submit a scale 
of hours and wages for cleaners and outside help and to devise means 
for so administering the provisions excepting learners as to avoid 
abuses. 

It is further recormnended that the President's approval include a 
condition that the resolution, passed at a meeting of the Cotton Tex- 
tile Industry Committee, held on June 30, 1933, to include office 
employees within the hour provisions of the code shall be carried 
into effect. 

■ 5. Concessions in original frofosals obtained during the hear- 
ing. — (Child Labor — Increased Minimum — Stretch-out.) 

Increases in the $10 and $11 wage scales originally proposed to $12 
and $13, and the elimination of child labor, were provided for in 
amendments adopted during the hearing. 

Of course, the most dramatic and significant development was the 
voluntary proposal by the industry to abolish child labor. This 
resulted less from the hearings than from the intendments of the Act 
itself. This resulted from the President's own concept that a mini- 
mum wage applied without distinction as to age would automatically 
eliminate child labor and it did. The reason why this ancient 
atrocity could be so easily killed, notwithstanding its tenacity of life 



13 

against 25 years of attack, was also intrinsic in the President's idea 
that employers would be glad to do much by general agreement that 
no single employer would dare to do separately. 

6. Planning and Supervisory Agency. — A planning and fair prac- 
tice agency was provided for in an amendment which is now section 
6 of the Code, adopted and submitted by the industry towards the 
end of the hearing along with other amendments, chief of which 
were the child-labor provisions and the increases in the proposed 
minimum wage. While these proposals were advanced too late for 
complete public discussion, no objections to their inclusion have come 
in from any of the interested parties. There has been some news- 
paper criticism on permitting new matter so late in the hearing. 
This springs from a misconception of the nature of this procedure. 
It is an administrative process to arrive at a just result. It is not an 
adversary judicial trial. The amendments were all in the public 
interest. This method will be continued. 

Section 6 was included at the instance of the Administration and 
with the active collaboration of our Division of Kesearch and Plan- 
ning (VI-D). It is a series of permissive powers and directions for 
industrial administration. It sets up a committee for industrial self 
government. The creation of such a planning agency for the con- 
tinuous collaboration of the industry with the Administration is an 
application to an individual industry of the industrial planning and 
research agency provided under Section 2 (b) of the Act for effectuat- 
ing the policies of the Act and is an intrinsic and necessary part of 
these policies. 

Recurring reference in the course of this report has been made to 
the plight of the industry even in the prosperity years prior to the 
depression. Comparisons between that industry and general manu- 
facturing and business contained in the accompanying economic 
report bear ample testimony to the need of rational control of pro- 
duction and balancing with consumption, the more pressing because 
of overcapacity of this staple industry as a byproduct of war expan- 
sion, of cut-throat competition from within, and the competition of 
substitute products from without. 

Broadly, the industry proposes an economic clearing house for the 
development of statistical accounting and economic controls which 
will aid its members in the conduct of their individual business pro- 
duction and distribution, and (through a service bureau for engineer- 
ing, accounting, and credit) aid more especially the smaller mills in 
meeting the emergency and the requirements of the code. As a 
supplement to this, it projects the development of an open trading 
association through which, as in the case of commodity exchanges, 
prices and terms of trading would be reported by all companies with 
a view to avoid and eliminate unfair and destructive competitive 
prices and practices. It further proposes to fashion instruments of 
self-government for dealing with the problems of overcapacity and 
overproduction by subjecting the installation of additional productive 
machinery to its scrutiny and the approval or disapproval of the 
Administration, at the same time allowing for flexibility of control 
over machinery through recommendations to the Administration for 
changes in or exemptions from limitation upon machinery hours 
when the interest of the industry and the public render it necessary. 



14 

Finally, mindful of the importance of credit in furthering economic 
stability, it proposes a cooperation with the banking and credit sys- 
tems to advise them of the actual functioning of the code and the 
operations of its members, to the end that available credit be adapted 
to the needs of the industry considered as a whole and the needs of 
the small as well as the large units. 

The foregoing and other listed functions of the Planning and Fair 
Practice Agency are thus placed within framework in which the 
common interests in stabilization of profitable activity and employ- 
ment at adequate wages can be brought into focus in practice. It 
remains to provide the framework for cooperation on the part of this 
agency with the Administration to which it is to make recommenda- 
tions which, when approved by the Administration, have the same 
force and effect as provisions of the code. 

For the purpose of permitting the development of cooperative 
planning and rational self-government in this industry, as in other 
industries, and for the purpose of protecting the public interest, it is 
recommended that Section VI of the code be approved with the con- 
dition that the Administrator shall appoint a committee of three, one 
representing labor in the cotton textile industry, one representing the 
owners and managers of the industry, and one representing the Ad- 
ministration of the Recovery Act, to act with such agency in super- 
vising the execution of the code and in promoting the purposes 
defined by Section 6 for the effectuation of the policy of the Recovery 
Act. 

Other provisions of the code were not subjected to controversy; 
were found advisable in the Administration's own analysis, and their 
approval is recommended. 

7. Suggested ConditioTis on Apjyroval. 

For obvious reasons, it is recommended that the following condi- 
tions be imposed on approval of the cotton textile code : 

(a) Maximum hours to apply to particular persons. — It is inter- 
preted that the provisions for maximum hours established a maximum 
of hours of labor per week for every employee covered., so that under 
no circumstances will such an employee be employed or permitted to 
work for one or more employers in the industry in the aggregate in 
excess of the prescribed number of hours in a single week. 

(b) Piece w\ork not to frustrate the code. — It is interpreted that 
the provisions for a minimum wage in this code establish a guaran- 
teed minimum rate of pay per hour of employment regardless of 
whether the employee's compensation is otherwise based on a time 
rate or upon a piece-work performance. This is to avoid frustration 
of the purpose of the code by changing from hour to piece-work rules. 

(c) " Stretch-outs " to he held in abeyance. — Until adoption of fur- 
ther provisions of this code necessary to prevent any improper speed- 
ing up of work to the disadvantage of employees (" stretch-outs ") 
and in a manner destructive of the purposes of the National Indus- 
trial Recovery Act, it is required that any and all increases in the 
amount of work or production required of employees over that re- 
quired on July 1, 1933, must be submitted to and" approved by the 
agency created by section VI of the code and by the Administration 
and if not so submitted such increases will be regarded as a prima 
facie violation of the provision for minimum wages. 



14a 

(d) Nomignatories to he give?i a hearing. — Opportunity shall be 
given for administrative consideration of every application of the 
code in particular instances to any person directly affected who has 
not in person or by a representative consented and agreed to the terms 
of the code. Any such person shall be given an opportunity for a 
hearing before the Administrator or his representative, and for a 
stay of the application to him of any provision of the code, prior to 
incurring any liability to the enforcement of the code against him 
by any of the means provided in the National Industrial Recovery 
Act. At such hearing any objection to the application of the Code in 
the specific circumstances may be presented and will be heard. 

(e) Teiivporarif approval. — The existing condition in the Cotton 
Textile Industry is not static. It may change very quickly. This 
is the first code and is frankly experimental. Its approval should be 
limited to a four months' period with the right to ask for a modifica- 
tion at any time and subject to a request for renewal for another four 
months at any time before its expiration. 

The attention of the President is called to the provision of Section 
I of the code, by virtue of which approval of the code on or before 
Sunday, July 9, will make it effective on Monday, July 17. 
Respectfully submitted. 

Hugh S. Johnson, 

A dTninistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

To effectuate the policy of Title I of the National Industrial Recov- 
ery Act, during the period of the emergency, by reducing and reliev- 
ing unemployment; improving the standards of labor; eliminating 
competitive practices destructive of the interests of the public, em- 
ployees, and employers; relieving the disastrous effects of overca- 
pacity, and otherwise rehabilitating the cotton textile industry; and 
by increasing the consumption of industrial and agricultural prod- 
ucts by increasing purchasing power; and in other respects, the fol- 
lowing provisions are established as a code of fair competition for 
the cotton textile industry : 

I. Deimitions. — The term " cotton textile industry " as used herein 
is defined to mean the manufacture of cotton yarn and/or cotton 
woven fabrics, whether as a final process or as a part of a larger or 
further process. The term " employees " as used herein shall include 
all persons employed in the conduct of such operations. The term 
" productive machinery " as used herein is defined to mean spinning 
spindles and/or looms. The term " effective date " as used herein is 
defined to be July 17, 1933, or if this code shall not have been approved 
by the President two weeks prior thereto, then the second Monday 
after such approval. The term " persons " shall include natural 
persons, partnerships, associations, and corporations. 

II. On and after the effective date, the minimum wage that shall 
be paid by employers in the cotton textile industry to any of their 
emplo5'ees — except learners during a six weeks' apprenticeship, clean- 
ers, and outside employees — shall be at the rate of $12 per week 
when employed in the Southern section of the industry and at the 
rate of $13 per week when employed in the Northern section for 40 
hours of labor. 

III. On and after the effective date, employers in the cotton textile 
industry shall not operate on a schedule of hours of labor for their 
employees — except repair-shop crews, engineers, electricians, firemen, 
office and supervisory staff, shipping, watching and outside crews, and 
cleaners — in excess of 40 hours per week, and they shall not operate 
productive machinery in the cotton textile industry for more than 
2 shifts of 40 hours each per week. 

IV. On and after the effective date, employers in the cotton textile 
industry shall not employ any minor under the age of 16 years. 

V. With a view to keeping the President informed as to the observ- 
ance or nonobservance of this Code of Fair Competition, and as to 
whether the cotton textile industry is taking appropriate steps to 
effectuate the declared policy of the National Industrial Recovery 
Act, each person engaged in the cotton textile industry will furnish 
duly certified reports in substance as follows and in such form as may 
hereafter be provided: 

(15) 



16 

(a) Wages and hours of lator. — Returns every four weeks showing^^ 
actual hours worked by the various occupational groups of employees 
and minimum w^eekly rates of wage. 

(b) Machinery data. — In the case of mills having no looms, returns 
should be made every four weeks showing the number of spinning 
spindles in place, the number of spinning spindles actually operating 
each week, the number of shifts, and the total number of spindle 
hours each week. In the case of mills having no spinning spindles^ 
returns every four weeks showing the number of looms in place, the 
number of looms actually operated each week, the number of shifts 
and the total number of loom hours each week. In the case of mills 
that have spinning spindles and looms, returns every four weeks 
showing the number of spinning spindles and looms in place; the 
number of spinning spindles and looms actually operated each week, 
the number of shifts, and the total number of spindle hours and loom 
hours each week. 

(c) Reports of production, stocks., and orders. — Weekly returns 
showing production in terms of the commonly used unit, i.e. linear 
yards, or pounds or pieces; stocks on hand both sold and unsold 
stated in the same terms and Unfilled Orders stated also in the same 
terms. These returns are to be confined to staple constructions and 
broad divisions of cotton textiles. The Cotton-Textile Institute, Inc., 
320 Broadway, New York City, is constituted the agency to collect 
and receive such reports. 

VI. To further effectuate the policies of the Act, the Cotton Tex- 
tile Industry Committee, the applicants herein, or such successor 
committee or committees as may hereafter be constituted by the 
action of the Cotton Textile Institute, the American Cotton Manufac- 
turers Association, and the National Association of Cotton Manu- 
facturers, is set up to cooperate with the Administrator as a planning 
and fair-practice agency for the cotton textile industry. Such agency 
may from time to time present to the Administrator recommenda- 
tions based on conditions in the industry as they may develop from 
time to time wdiich will tend to effectuate the operation of the pro- 
visions of this code and the policy of the National Industrial Re- 
covery Act, and in particular along the following lines : 

1. Recommendations as to the requirements by the Administrator 
of such further reports from persons engaged in the cotton textile 
industry of statistical information and keeping of uniform accounts 
as may be required to secure the proper observance of the code and 
promote the proper balancing of production and consumption and 
the stabilization of the industry and employment. 

2. Recommendations for the setting up of a service bureau for 
engineering, accounting, credit, and other purposes to aid the smaller 
mills in meeting the conditions of the emergency and the requirements 
of this code. 

3. Recommendations ( 1 ) for the requirement by the Administrator 
of registration by persons engaged in the cotton textile industry of 
their productive machinery, (2) for the requirement by the Adminis- 
trator that prior to the installation of additional productive ma- 
chinery by persons engaged or engaging in the cotton textile industry, 
except for the replacement of a similar number of existing looms or 
spindles or to bring the operation of existing productive machinery 
into balance, such persons shall secure certificates that such installa- 



17 

lion will be consistent with effectuating the policy of the National 
Industrial Recovery Act during the period of the emergency, and (3) 
ior the granting or withholding by the Administrator of such certifi- 
cates if so required by him. 

4. Recommendations for changes in, or exemptions from the pro- 
visions of this code as to the working hours of machinery which will 
tend to preserve a balance of productive activity with consumption 
requirements, so that the interests of the industry and the public 
may be properly served. 

5. Recommendations for the making of requirements by the Ad- 
ministrator as to practices by persons engaged in the cotton textile 
industry as to methods and conditions of trading, the naming and 
reporting of prices which may be appropriate to avoid discrimination, 
to promote the stabilization of the industry, to prevent and eliminate 
unfair and destructive competitive prices and practices. 

6. Recommendations for regulating the disposal of distress mer- 
chandise in a way to secure the protection of the owners and to 
promote sound and stable conditions in the industry. 

7. Recommendations as to the making available to the suppliers of 
■credit to those engaged in the industry of information regarding 
terms of, and actual functioning of any or all of the provisions of the 
code, the conditions of the industry and regarding the operations of 
any and all of the members of the industry covered by such code to 
the end that during the period of emergency available credit may be 
adapted to the needs of such industry considered as a whole and to 
the needs of the small as well as to the large units. 

8. Recommendations for dealing with any inequalities that may 
•otherwise arise to endanger the stability of the industry and of pro- 
duction and employment. 

Such recommendations, when approved by the Administrator, shall 
have the same force and effect as any other provisions of this code. 

Such agency is also set up to cooperate with the Administrator in 
making investigations as to the functioning and observance of any 
of the provisions of this code, at its own instance or on complaint by 
any person affected, and to report the same to the Administrator. 

Such agency is also set up for the purpose of investigating and 
informing the Administrator on behalf of the cotton textile indus- 
try as to the importation of competitive articles into the United 
States in substantial quantities or increasing ratio to domestic pro- 
duction on such terms or under such conditions as to render ineffective 
or seriously to endanger the maintenance of this code and as an 
agency for making complaint to the President on behalf of the Cotton 
Textile Industry, under the provisions of the National Industrial 
Recovery Act, with respect thereto. 

VII. Where the costs of executing contracts entered into in the 
cotton textile industry prior to the presentation to Congress of the 
National Industrial Recovery Act are increased by the application 
of the provisions of that Act to the inckistry, it is equitable and 
promotive of the purposes of the Act that appropriate adjustments 
of such contracts to reflect such increased costs be arrived at by arbi- 
tral proceedings or otherwise, and the Cotton Textile Industry Com- 
mittee, the applicant for this code, is constituted an agency to assist 
in effecting such adjustments. 



18 

VIII. Employers in the Cotton Textile Industry shall comply with 
the requirements of the National Industrial Recovery Act as follows : 
"(1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self -organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection; (2) that no 
employee and no one seeking employment shall be required as a con- 
dition of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing; and (3) that employers shall comply with the maximum 
hours of labor, minimum rates of pay, and other conditions of 
employment, approved or prescribed by the President." 

IX. This code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provision 
of Clause 10 (b) of the National Industrial Recovery Act, from time 
to time to cancel or modify any order, approval, license, rule or regu- 
lation, issued under Title I of said Act, and specifically to the right 
of the President to cancel or modify his approval of this code or any 
conditions imposed by him upon his approval thereof. 

X. Such of the provisions of this code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions of this code or 
additional codes will be submitted for the approval of the President 
to prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Recovery Act consistent 
with the provisions hereof. 

Approved Code No. 1. 
Registry No. 299-25. 



EXECUTIVE ORDEKS APPLYING PROVISIONS OF THE 
COTTON TEXTILE CODE TO OTHER INDUSTRIES 

Executive Order 

In supplement to an application filed for approval of a code of fair 
competition for the rayon weaving industry, the applicants have re- 
quested immediate approval of certain provisions, and after due con- 
sideration, acting under the Provisions of the National Industrial 
Recovery Act, I agree with the applicants who have filed said code 
for the rayon weaving industry, that the provisions of section V, 
paragraphs A, B, D and E, which are identical with corresponding 
provisions in the Cotton Textile Code, approved by me July 9, 1933, 
should be made effective on July 17, 1933, which is the effective date 
of the Cotton Textile Code, and I hereby approve of said provisions 
of said code for the rayon weaving industry subject to the interpreta- 
tion and conditions imposed by me on my approval of the correspond- 
ing provisions of said Cotton Textile Code, and subject further ta 
such revision or modification as I may find proper after a hearing has 
been held on said code of fair competition for the rayon weaving 
industry, now set for July 25, 1933. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

July U, 1933. 

(19) 



20 
Executive Order 

In supplement to an application filed for approval of a Code of 
Fair Competition for the Throwing Industry, the applicants have 
requested immediate approval of certain provisions of said Code, 
with amendments thereto, and after due consideration, acting under 
the Provisions of the National Industrial Recovery Act, I agree with 
the applicants who have filed said Code for the Throwing Industry 
that the provisions of Sections III, IV, V, IX which, as amended, 
are identical with corresponding provisions in the Cotton Textile 
Code, approved by me July 9, 1933, should be made effective as 
amended on July 17, 1933, which is the effective date of the Cotton 
Textile Code, and I therefore hereby approve of said provisions of 
said Code for the Throwing Industry, as amended, subject to the 
interpretations and conditions imposed by me on my approval of the 
corresponding provisions of said Cotton Textile Code and subject 
further to such revisions or modifications as I may find proper after 
a hearing has been held on such Code of Fair Competition for the 
Throwing Industry, now set for July 25, 1933. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dtmnistratoi\ 

The White House, 

July IJf, 1933. 

Executive Order 

Pursuant to the authority vested in me by Title I of the National 
Industrial Recovery Act, approved June 16, 1933, and pending action 
upon a Code of Fair Competition to be presented by the Silk 
Association of America, I agree with the Committee representing the 
Broad Silk and Rayon Weavers Division, the Converters Division, the 
Special Fabrics Division, the Ribbon Division, and the Woven Label 
Division, of the Silk Association of America, that they shall be bound 
beginning July 17 by the provisions of the Cotton Textile Industry 
Code as set forth in the telegram, dated July 14, offering this agree- 
ment to the President of the United States, pursuant to Section 4 of 
the National Recovery Act, which telegram is signed by Henry E. 
Stehli, James C. Black, Paul C- Debry, Sol C. Moss, Ramsay Peugnet, 
George G. Sommaripa, and addressed to Mr. Nelson Slater, Deputy 
Administrator, Department of Commerce, Washington, D.C., with 
the express understanding that this agreement is subject to cancella- 
tion at any time without notice. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Admimstrat07\ 

The White House, 

July 15, 1933. 



21 
Executive Order 

In supplement to an application filed for approval of a Code of 
Fair Competition for the Cotton Thread Industry, the applicants 
have requested immediate approval of certain provisions, and after 
due consideration, acting under the provisions of the National 
Industrial Recovery Act, 1 agree with the applicants who have filed 
said Code for the Cotton Thread Industry that the provisions of 
Title 2, Paragraphs 5 and 6 and the provisions of Title 3, paragraphs 
4 and 5, which are identical with corresponding provisions in the 
Cotton Textile Code, approved by me July 9, 1933, should be made 
effective on July 17, 1933, which is the effective date of the Cotton 
Textile Code, and I therefore hereby approve of said provisions of 
said Code for the Cotton Thread Industry subject to the interpre- 
tations and conditions imposed by me on my approval of the corre- 
sponding provisions of said Cotton Textile Code and subject further 
to such revisions or modifications as I may find proper after a hearing 
has been held on said Code of Fair Competition for the Cotton 
Thread Industry. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

July 16, 1933. 

Executive Order 

A Code of Fair Competition for the Cotton Textile Industry has 
been heretofore approved by Order of the President dated July 9, 
1933, on certain conditions set forth in such order. The applicants 
for said Code have now requested the withdrawal of condition 12 of 
said order providing for the termination of approval at the end of 
four months unless expressly renewed, have accepted certain other 
conditions, have proposed amendments to the Code to effectuate the 
intent of the remaining conditions, and have requested that final 
approval be given to the Code as so amended and on such conclitions. 

Pursuant to the authority vested in me by Title I of the National 
Industrial Recovery Act, approved June 16, 1933, on the report and 
recommendation of the Administrator and on consideration. 

It is ordered that the condition heretofore imposed as to the ter- 
mination of approval of the Code is now withdrawn and that the 
Code of Fair Competition for the Cotton Textile Industry is finally 
approved with the conditions soi accepted and with the amendments 
so proposed, as set forth in Schedule A attached hereto. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

Jidy 16, 1933. 



SCHEDULE A 

Application to thei President by the Cotton Textile Industry Committee 
FOR Final Approval of Code of Fair Competition for the Cotton 
Textile Industry 

The Cotton Textile Industry Committee, the applicant for the approval of the 
Code of Fair Competition for the Cotton Textile Industry, submitted for the 
approval of the President June 16, 1933, and as revised June 30, 1933, accepts the 
interpretations and conditions to the approval thereof set forth in paragraphs 1, 
3, 7, 8, 9, and 13 of the order of the President dated July 9, 1933, and asks the 
approval of the President to the following amendments to such code as properly 
complying with and effectuating the conditions provided for in paragraphs 2, 4, 
5. 6, 10, and 11 of said order of approval, and asks for the final approval by the 
President of the Code of Fair Competition for the Cotton Textile Industry as so 
amended, and on the conditions so accepted and with the omission of the condi- 
tion in paragraph 12 of such order as to the termination of the approval at the 
end of four months. 

1. It shall be one of the functions of the Planning and Fair Practice Agency 
provided for in Section 6 of the code to consider the question of plans for 
eventual employee ownership of homes in mill villages and submit to the Re- 
covery Administration prior to January 1, 1934, its report in the matter. 

2. On and after July 31, 1933, the maximum hours of labor for office em- 
ployees in the Cotton Textile Industry shall be an average of forty hours a 
week over each period of six months. 

3. The amount of differences existing prior to July 17, 1933, between the 
wage rates paid various classes of employees (receiving more than the estab- 
lished minimum wage) shall not be decreased — in no event, however, shall any 
employer pay any employee a wage rate which will yield a less wage for a 
work week of 40 hours than such employee was receiving for the same class 
of work for the longer week of 48 hours or mox'e prevailing prior to July 17, 
1933. It shall be a function of the Planning and Fair Practice Agency provided 
for in Paragraph 6 of the code to observe the operation of these provisions and 
recommend such further provisions as experience may indicate to be appropii- 
ate to effectuate their purposes. 

4. On and after the effective date the maximum hours of labor of repair shop 
crews, engineers, electricians, and watching crews in the Cotton Textile Industry 
shall, except in case of emergency work, be forty hours a week with a tolerance 
of 10 percent. Any emergency time in any mill shall be reported monthly to 
the Planning and Fair Practice Agency provided for in Paragraph 6 of the 
Code, through the Cotton-Textile Institute. 

5. Until adoption of further provisions of this code that may prove necessary 
to prevent any improper speeding up of work (stretch-outs), no employee of any 
mill in the Cotton Textile Industry shall be required to do any work in excess 
of the practices as to the class of work of such employee prevailing on July 1, 
1933, or prior to the Share-the-Work Movement, unless such increase is sub- 
mitted to and approved by the Agency created by Section 6 of the code and by 
the National Recovery Administration. 

6. This code shall be in operation on and after the effective date as to the 
whole cotton textile industry except as an exemption from or a stay of the ap- 
plication of its provisions may be granted by the Administrator to a person 
applying for the same or except as provided in an executive order. No dis- 
tinction shall be made in such exemptions between persons who have and have 
not joined in applying for the approval of this code. 

Respectfully submitted. 

The Cotton Textile Industry Committee, 
George A. Sloan, Chairman. 

July 15, 1933. 

(22) 



23 



The Cotton -Textile Institute, Inc., 

Washington, D.C., August 1, 1933. 
Hon. Hugh S. Johnson, 

Administrator National Recovery Administration, 

Waslmigton, D.C. 
Sik: The Cotton Textile Industry Committee, the Planning and Fair Practice 
Agency for the Cotton Textile Industry, constituted by Section VI, of the Code 
of Fair Competition for the Cotton Textile Industry, finally approved by the 
President July 16, 1933, recommends to the Administrator an amendment in 
the form attached hereto of the Code of Fair Competition for the Cotton Tex- 
tile Industry, making an appropriate provision to prevent any improper speed- 
ing up of work (stretch-out) and to supersede the present temporary provision 
with regard to such speeding up of work (.stretch-out) now embodied in Para- 
graph XV of said Code, 



Respectfully submitted. 



Approved : 

Hugh S. Johnson, 



The Cotton Textile Industry Committeie, 
By George A. Sloan, Chairman. 
Leo Wolman. 

Nelson Slater. 



August 8, 1933. 



24 

AME3NDMENT TO CODE OF FAIR COMPimTION FOR THE COTTON TEXTILE INDUSTRY 

* XVII. To make proper provision witli regard to the stretcli-out (or speciali- 
zation ) system or any ottier problem of working conditions in the Cotton Textile- 
Industry, it is provided : 

1. There shall be constituted by appointment of the Administrator a CottoiL 
Textile National Industrial Relations Board, to be composed of three members, 
one to be nominated by the Cotton Textile Industry Committee to represent 
the employers, one to be nominated by the Labor Advisoi'y Board of the National 
Recovery Administration to represent the employees, and a third to be selected 
by the Administrator. This National Board shall be provided by the National 
Recovery Administration with a per diem for actual days engaged In its work 
and with such secretarial and expert technical assistance as it may require in 
the performance of its duties. 

-. The Administrator, upon the nomination of the Cotton Textile National 
Industrial Relations Board shall appoint in each state in which the cotton textile^ 
industry operates a State Cotton Textile Industrial Relations Board composed 
of three members, one of whom shall be selected from the employers of the 
cotton textile industry, one from the employees of the cotton textile industry, 
and a third to represent the public. 

3. Whenever, in any cotton textile mill, a controversy shall arise between 
employer and employees as to the stretch-out (or specialization) system or any 
other problem of working conditions, the employer and the employees may 
establish in such mill an Industrial Relations Committee chosen from the man- 
agement and the employees of the mill and on which the employer and the em- 
ployees shall have equal representation of not more than three representatives 
each. If such a committee is not otherwise established, the employer or the 
employee, or both, may apply to the State Industrial Relations Board for 
assistance and cooperation in the establishment in such mill of such industrial 
relations committee. The term of service of each such mill committee shall be 
limited to the adjustment of such controversy or problem of working conditions 
for the adjustment of which the committee was created. 

If the representatives of the employers and of the employees in such industrial 
relations committee are unable to arrive at an agreement and united action 
with respect to such differences of opinion, the representatives of the employers 
or of the employees, or lioth, may appeal to the State Industrial Relations 
Board for cooperation and assistance in arriving at an agreement and united 
action. 

It shall be the duty of such Industrial Relations ConunitteC' to endeavor 
to adjust such controversy. In cases where such committee reaches agreement 
with respect to any such controversy, such agreement shall b^ final except 
that it shall be submitted to the Cotton Textile National Industrial Relation* 
Board for i-eview and appi'oval under such regulations as such National Board 
may establish. 

This provision for such industrial relations committee within the particular 
mills shall be without prejudice to the freedom of association of employees and 
the other provisions of Section 7, of the Industrial Recovery Act. 

4. It shall be the duty of the State Industrial Relations Board, where their as- 
sistance is requested, as provided in subsection 3. to cooperate with employers^ 
and employees in organizing industrial-relations committees in individual cotton 
textile mills and to cooi>erate with such committees in the development of con- 
ference procedures and in the adjustment of differences of opinion with respect 
to the operation or introduction of the stretch-out system and other problems of 
working conditions. 

In the event that the State Industrial Relations Board is unable to bring about 
agreement and united action of labor and management in a controversy so ap- 
pealed to it, such State Industrial Relations Board shall present the controversy 
to the National Industrial Relations Board for hearing and final adjustment. 

5. The National Industrial Relations Board shall hear and finally determine 
all such questions brought before it on appeal by the State Industrial Relations 
Boards and certify its decisions to the Administrator and shall liave authority to 
codify the experience of the industrial-relations committees of the various mills 
and state boards with a view to establishing standards of general practice with 
respect to the stretch-out (or specialization) system or other probflems of 
working conditions. 

^This number is arrived at by continuing from Section X (the last section of the 
original code) and considering the six sections of Schedule A preceding as Sections 
XI-XVI, inclusive. 

o 



Approved Code No. 2 
CODE OF FAIR COMPETITION 

FOR THE 

SHIPBUILDING AND SHIPREP AIRING INDUSTRY 

As Approved on July 26, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 



A Code of Fair Competition for the Shipbuilding and Shiprepair- 
ing Industry, having been heretofore submitted to the National 
Recovery Administration, hearings having been held thereon, and an 
amended code of fair competition having been submitted on July 
25, 1933, said original code and said amended code having been 
submitted by duly qualified and authorized representatives of the 
Industry complying with the statutory requirements as representing 
eighty percent of the capacity of the industry, and said code being in 
full compliance with all pertinent provisions of the National 
Industrial Recovery Act, Now Therefore 

Pursuant to the authority vested in me by Title I of the National 
Industrial Recovery Act, approved June 16, 1933, on the report and 
recommendation of the administrator appointed by me under the 
authority of said Act, and on consideration : 

It is ordered that the said Code of Fair Competition for the Ship- 
building and Shiprepairing Industry, as amended and submitted on 
-July 25, 1933, is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dministrator. 

The White House, 

July 26, 1933. 

29851 296-125 34 (25) 



To the President. 



July 25, 1933. 



I — I NTEODUCTION 

This is a report of the hearing on the Code of Fair Competition 
and Trade Practices for the Shipbuilding and Shiprepairing Indus- 
try in the United States conducted in Washington on July 19, 20, 
and 21, 1933, according to the provisions of the National Industrial 
Recovery Act. 

In accordance with the customary procedure, every person who filed 
an appearance was freely heard in public, and all statutory and regu- 
latory requirements were complied with. 

The code which is attached was presented by duly qualified and 
authorized representatives of the industry, complying with the statu- 
tory requirements, as representing 80% of tlie capacity of the 
industry. 

II — Character and the Present Condition of the Industry 

The American Shipbuilding Industry is characterized by a great 
overcapacity of physical facilities which are a heritage of the War. 

Labor in this industry may be characterized as highly paid in com- 
parison with that of other manufacturing industries. Furthermore, 
its labor is mainly semiskilled and skilled and the proportion of 
common labor is smaller than in many other industries. 

The present average conditions of employment and the present 
levels of pay rolls are brought out clearly in the following indices 
taken from the records of the Bureau of Labor statistics : 



Average 



1929 



1930 



1931 



1932 



1933 



Employment index. 
Pay-roll index. 



100.0 
100.0 



105.9 
103.4 



81.9 
70.0 



65.2 

47.8 



47.4 
29.6 



It is estimated by the representatives of this industry that with the 
new Naval Shipbuilding Program and working under the restric- 
tions of hours of employment contained in this code, total employ- 
ment in the industry will be increased materially above the high- 
est levels of employment reached since the War, raising the employ- 
ment from its present levels of about 15,000 men to approximated 
60,000. 

(26) 



27 
III — Discussion of Code 

Following is a brief discussion of each of the sections of the pro- 
posed code. In the event that there was no objection raised to these 
sections in the Hearings no comment is offered thereon, 

1. Definition of Terms. — No objections were offered in this section. 

2. General Regulations. — The labor representatives requested a 
modification of the Statutory regulations regarding the relationship 
between the employer and the employee covered in this Section of 
the code. 

Our council advises me that the regulations in the code are 
adequate and directly in accordance with the Act. 

3. Regulations of Hours of Work — (a) Merchant Shipbuilding 
and Shiprepairing. — No employee on an hourly rate may work in 
excess of an average of thirty-six (36) hours per week, based upon a 
six (6) months period; nor more than forty (40) hours during any 
one week. If any employee on an hourly rate works in excess of 
eight (8) hours in any one day, the wage paid will be at the rate of 
not less than one and one half (II/2) times the regular hourly rate, 
but otherwise according to the prevailing custom in each port, for 
such time as may be in excess of eight (8) hours. 

(b) Shipbuilding for the United States Government. — No em- 
ployee on an hourly rate may work in excess of thirty-two (32) hours 
per week. If any employee on an hourly rate works in excess of"- 
eight (8) hours in any one day the wage paid will be at the rate of 
not less than one and one half (ll^) times the regular hourly rate, 
but otherwise according to the prevailing custom in each port, for 
such time as may be in excess of eight (8) hours. 

(c) Exceptions. — For a period of six (6) months exception may be 
made in the number of hours of employment for the employees of the 
shipbuilders engaged in designing, engineering, and in mold loft and 
order departments and such others as are necessary for the prepara- 
tion of plans and ordering of materials to start work on new ship 
construction, but in no event shall the number of hours worked be 
in excess of forty-eight (48) hours per week, and in no case or class 
of cases not approved by the Planning and Fair Practice Commit- 
tee provided for in Section (8). 

4 — Minimum Wage Rates 

(a) The minimum pay for labor, except apprentices, learners, 
casual and incidental labor, shall be at the rate of forty-five (45) 
cents per hour in the North and thirty-five (35) cents per hour in the 
South. 

(1) Apprentices and learners shall not be paid less than the mini- 
mum wage after two (2) years of employment. 

(2) Casual and incidental labor to be paid not less than eighty 
(80) percent of the minimum wage, the total number of such casual 
and incidental employees in any calendar month not to exceed eight 
(8) percent of the total number of skilled and semiskilled employees 
during the same period. 

(b) The amount of difference existing prior to July 1, 1933, between 
the wage rates paid various classes of employees receiving more than 
the established minimum wage shall not be decreased. In no event 



28 

shall any employer pay any employee a wage rate which will yield a 
less wage for a work week of thirty-six (36) hours than such employee 
was receiving for the same class of work for a forty (40) hour week 
prior to July 1, 1933. It is understood that there shall be no dif- 
ference between hourly wage rates on commercial work and on naval 
work, for the same class of labor. 

(c) It shall be a function of the Planning and Fair Practice Agency 
provided for in Paragraph 8 (a) of this code to observe the operation 
of these provisions and recommend such further provisions as experi- 
ence may indicate to be appropriate to etfectuate their purpose. 

The original Shipbuilding Code stipulated a forty (40) hour week 
with a minimum wage for common labor at the rate of forty (40) 
cents per hour in the North and thirty-five (35) cents per hour in the 
South. 

The provisions affecting the wage scale, the minimum hourly wage 
rate, the weekly work hours, the exemptions in Parts 3 and 4 of the 
code and the differential in wages between the North and South were 
bitterly contested by the labor group. 

Representatives of fourteen labor unions unanimously advocated 
a thirty (30) hour week and an eighty-three and one third ( 831/3 ) 
cents minimum hourly rate and additional provisions as follows : 

1. A thirty (30) hour week. 

2. Abolition of overtime except for maintenance purposes. Double 
wage for such overtime. 

3. Minimum wage of twenty five (25) dollars per week. Mainte- 
nance of present weekly earnings for thirty (30) hours work for 
higher wage groups. 

4. Abolition of subcontracting. 

5. Temporary prohibition of employment of new apprentices. 



At subsequent negotiations the sponsors of the code and the labor 

representatives were de-finitely agreed upon the provisions for mini- 
mum wages, maximum hours, and the exceptions as stated in the 
final code attached to this memorandum. 



A representative of the Ship Owners Association, whose member- 
ship consists of 90% of the large merchant ship operating com- 
panies in the United States, testified in favor of the_ employment 
provisions of the code, and emphasized the effect which a radical 
advance in shipbuilding and shiprepairing costs would have on the 
placing of contracts for new ships and repairing, which would add a 
further capital charge to all American ships in competition with 
foreign shipping. 

Slight modification in hours were also requested by the Great Lakes 
Division of the industry and two individual Southern yards requested 
a wider differential than five (5) cents an hour between the North 
and the South originally proposed. 

The Naval Construction Program covered in Title II of the N.I.R.A. 
is a primary factor in considering the Shipbuilding Code. From a 
total appropriation of $238,000,000, contracts amounting to $118,- 
000,000 to be executed during the next three years are to be placed 
by the Navy Department in private yards. The Navy Department 



29 

and the Naval Ship Construction Department both testified in favor 
of the original maximum hours and minimum wage rates requested 
by the industry because of their effect upon the costs and the deliveries 
of the ships to be ordered and the ships at present under construction 
for the Navy in both private and Navy Yards. 

6 — Arbitration of Existing Contracts 

Part (6) is a direct copy of the provision included in the Cotton 
Textile Code which was approved by the President. 

7 — Unfair Methods of Competition 

To accomplish the purpose contemplated by this Act, the members 
signatory to this code agree that the following practices are hereby 
declared to be unfair methods of competition. 

(a) To sell any product(s) or service (s) below the reasonable cost 
for such product(s) or service(s). 

For this purpose, cost is defined as the cost of direct labor plus the 
cost of materials plus an adequate amount for overhead including 
an amount for the use of any plant facilities employed as determined 
by cost accounting methods recognided in the industry and approved 
by the Committee constituted for the enforcement of this code as 
provided in Section 8 (a). 

(b) To give or accept rebates, refunds, allowances, unearned dis- 
counts, or special services directly or indirectly in connection with 
any work performed or to receipt bills for insurance work until pay- 
ment is made. 

Enforcement of paragraph (a) will be difficult. Industry, however, 
feels that it would have an influence in promoting better accounting 
methods and will result in an improved competitive situation through- 
out the industry. 

Paragraph (b) of this section was not objected to by anyone at 
the hearing. 

8 — Administration 

This section is along the lines of the provisions of the Cotton Tex- 
tile Code. No objection was raised to these provisions in the hearing. 
Respectfully submitted. 

Hugh S. Johnson, 

A dministrat o)\ 



CODE OF FAIR COMPETITION 

FOR THE 

SHIPBUILDING AND SHIPREPAIRING INDUSTRY 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Shipbuilding and Shiprepairing Industry. 

1 — Definition of Terms 

The terms " shipbuilder " and " shiprepairer," when used in this 
code, includes a person, partnership, or corporation engaged in the 
business of building, fabricating, repairing, reconstructing, remodel- 
ing, and assembling oceangoing, harbor and inland water-way vessels, 
and floating marine equipment of every type above ten tons, includ- 
ing the building within their plants of machinery, equipment, and 
other ship's parts. 

2 — General Regulations 

The shipbuilders and shiprepairers will complj^ with the following 
specific provisions of the National Industrial Recovery Act : 

(a) That employees shall have the right to organize and bargain 
collectively through representatives of their ow^n choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

(b) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and 

(c) That employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment, 
approved or prescribed by the President. 

3 — Regulations of Hours or Work 

(a) Merchant Shipbuilding and Shiprepairing. — No employee on 
an hour rate may work in excess of an average of thirty-six (36) 
hours per week, based upon a six (6) months' period; nor more than 
forty (40) hours during any one week. If any employee on an hourly 
rate works in excess of eight (8) hours in any one da}^, the wage paid 
will be at the rate of not less than one and one half (IV2) times the 
regular hourly rate, but otherwise according to the prevailing custom 
in each port, for such time as may be in excess of eight (8) hours. 

(b) Ship'bu'dding for the United States Government. — No em- 
ployee on an hourly rate may work in excess of thirty-two (32) hours 
per week. If any emploj^ee on an hourly rate works in excess of 
eight (8) hours in any one day, the wage paid will be at the rate of 
not less than one and one half {W2) times the regular hourly rate, but 
otherwise according to the prevailing custom in each port, for such 
time as may be in excess of eight (8) hours. 

(30) 



31 

(c) Exceptions. — For a period of six (6) months' exception may be 
made in the number of hours of employment for the employees of the 
shipbuilders engaged in designing, engineering and in mold loft and 
•order departments and such others as are necessary for the prepara- 
tion of plans and ordering of materials to start work on new ship 
construction, but in no event shall the number of hours worked be in 
•excess of forty-eight (48) hours per week, and in no case or class of 
cases not approved by the Planning and Fair Practice Committee 
provided for in Section (8). 

4 — Minimum Wage Rates 

(a) The minimum pay for labor, except apprentices, learners, 
casual and incidental labor, shall be at the rate of forty-five (45) 
cents per hour in the North and thirty-five (35) cents per hour in 
the South. 

(1) Apprentices and learners shall not be paid less than the mini- 
mum wage after two (2) years of employment. 

(2) Casual and incidental labor to be paid not less than eighty 
(80) percent of the minimum wage, the total number of such casual 
and incidental employees in any calendar month not to exceed eight 
(8) percent of the total number of skilled and semiskilled employees 
during the same period. 

(b) The amount of differences existing prior to July 1, 1933, be- 
tween the wage rates paid various classes of employees receiving 
more than the established minimum wage shall not be decreased. In 
no event shall any employer pay an employee a wa^e rate which will 
yield a less wage for a work week of thirty-six (36) hours than such 
employee was receiving for the same class of work for a forty (40) 
hour week prior to July 1, 1933. It is understood that there shall be 
no difference between hourly wage rates on commercial work and on 
naval work, for the same class of labor, in the same establishment. 

5 — Prohibition of Cnn.D Labor 

On and after the effective date of this code, employers shall not 
■employ any minor under the age of sixteen (16) years. 

6 — Arbitration or Existing Contracts 

Where the costs to the contractor of executing contracts entered 
into in the shipbuilding and shiprepairing industry prior to the 
presentation to Congress of the National Industrial Recovery Act 
or the adoption of this code are increased by the application of the 
provisions of that Act or this code, it is equitable and promotive of 
the purposes of the Act that appropriate adjustments of such con- 
tracts to reflect such increased costs be arrived at by arbitral pro- 
ceedings or otherwise and the applicants for this code constitute 
themselves a committee to assist in effecting such adjustments. 

7 — Unfair Methods of Competition 

To accomplish the purpose contemplated by this Act, the members 
signatory to this code agree that the following practices are hereby 
•declared to be unfair methods of competition: 



32 

(a) To sell any products(s) or service (s) below the reasonable cost 
of such product (s) or service (s). 

(1) For this purpose, cost is defined as the cost of direct labor plus 
the cost of materials plus an adequate amount of overhead, including 
an amount for the use of any plant facilities employed as determined 
by cost accounting methods recognized in the industry (and approved 
by the committee constituted for the enforcement of this code as 
provided in Section 8 (a)). 

(b) To give or accept rebates, refunds, allowances, unearned dis- 
counts, or special services directly or indirectly in connection with 
any work, performed or to receipt bills for insurance work until pay- 
ment is made. 

8 — -Administkation 

(a) To effectuate further the policies of the Act, a Shipbuilding and 
Shiprepairing Industry Committee is hereby designated to cooperate 
with the administrator as a planning and fair practice agency for 
the shipbuilding and shiprepairing industry. Tliis committee shall 
consist of five representatives of the shipbuilders and ship repairers 
elected by a fair method of selection, to be approved by the Adminis- 
trator and three members without vote appointed by the President of 
the United States. Such agency may from time to time present to 
the administrator recommendations based on conditions in their 
industry as they may develop from time to time which will tend to 
effectuate the operation of the provisions of this code and the policy 
of the National Industrial Recovery Act. 

(b) Such agency is also set up to cooperate with the administrator 
in making investigations as to the functioning and the observance of 
any provisions of this code, at its own instance or on complaint by 
any person affected, and to report the same to the administrator. 

(c) This code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provision 
of Clause 10 (b) of the National Industrial Recovery Act, from time 
to time to cancel or modify any order, approval, license, rule, or regu- 
lation issued under Title I of said Act, and specifically to the right of 
the President to cancel or modify his approval of this code or any 
conditions imposed by him upon his approval thereof. 

(d) Such of the provisions of this code as are not required to be 
included therein by the National Industrial Recover}^ Act may. with 
the approval of the President, be modified or eliminated as changes 
in the circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions of this code or 
additional codes will be submitted for the approval of the President 
to prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Recovery Act consistent 
with the provisions thereof. 

(e) This code shall become effective not later than ten (10) days 
after its approval by the President. 

Approved Code No. 2. 
Registry No. 1408/1/01. 

o 



Approved Code No. 3 
CODE OF FAIR COMPETITION 

FOR THE 

WOOL TEXTILE INDUSTRY 

As Approved on July 26, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

A Code of Fair Competition for the Wool Textile Industry, 
having been heretofore submitted to the National Recovery Adminis- 
tration, hearings having been held thereon, and an Amended Code 
of Fair Competition having been submitted on July 25, 1933, said 
original Code and said Amended Code having been submitted by 
duly qualified and authorized representatives of the Industry com- 
plying with the Statutory requirements as representing eighty per- 
cent of the capacity of the Industry, and said Code being in full 
compliance with all pertinent provisions of the National Industrial 
Recovery Act, Now Therefore 

Pursuant to the authority vested in me by Title I of the National 
Industrial Recovery Act, approved June 16, 1933, on the report and 
recommendation of the Administrator appointed by me under the 
authority of said Act, and on consideration : 

It is ordered that the said Code of Fair Competition for the 
Wool Textile Industry, as amended and submitted on July 25, 1933, 
is hereby approved, subject to the following condition : 

(1) To effectuate further the policies of the Act, a Wool Textile 
Industry Committee be created to cooperate with the Administrator 
as a Planning and Fair Practice agency for the Wool Textile Indus- 
try, which Committee shall consist of five representatives of the 
Wool Textile Industry elected by a fair method of selection, to be 
approved by the Administrator, and three members without vote 
appointed by the Administrator. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Achmnisti'ator. 

The White House, 

July 26, 1933. 

(33) 

29850 296-126 34 



To the President : 

Introduction 

This is a report of the hearing on the Code of Fair Practice for the 
Wool Textile Industry in the United States, conducted in Washing- 
ton on July 24th and 25th, 1933, in accordance with the provisions 
of the National Industrial Recovery Act. 

In the conduct of the hearing ever}^ person who had filed a request 
for an appearance was freely heard in public and all statutory and 
regulatory requirements were complied with. 

The code which is attached was presented by duly qualified and 
authorized representatives of the industry, and complies with the 
statutory requirements, as representing fully eighty percent of the 
wool textile machinery, including both looms and spindles. 

Economic and Statistical Analysis 

The first significant factor to consider in connection with the wool 
textile industry is the fact that since 1923 the gross volume of the 
industry has been constantly declining, measured both by the per 
capita consumption of woven goods ancl the total machinery activity 
of the industry. In 1923 the per capita consumption of all worsted 
and woolen woven goods was 7.26 square yards. In 1929 the per 
capita consumption was 5.41 square yards. Per capita consumption 
of dress goods for women's wear declined from 3.08 square yards in 
1909 to .58 in 1929, an 81 percent decline. In 1923 the average broad 
loom hours per week were 2,560,000; by 1932 the broad loom hours 
had consistently fallen to an average of 1,170,000 hours per week. 

Due to this constant decline, resulting from the inroads of com- 
peting textile fabrics and changes in living habits and styles, the 
wool textile industry has had extreme difficulty in readjusting its 
affairs in an orderly manner. Therefore, this code is predicated 
u23on the assumpton that the average activity of this constant period 
of decline 1923-32 is a reasonable and adequate level of activity to 
be attained and maintained. The average activity of the 1923-32 
period corresponds very closely with the activity of the industry in 
the year 1929. 

A^ characteristic of the wool textile industry requiring special 
consideration is the rather wide diversification in the various 
branches of the industry. 

This has been recognized by the National Association of Wool 
Manufacturers in the groupings provided for in its by-laws. Be- 
cause of the limited availability of complete and reliable statistics 
in reference to these individual branches of the industry, it is neces- 
sary for the purposes of formulating this code to use figures which 

(34) 



35 

had application to the industry as a whole. It is inevitable, there- 
fore, that particular branches of the industry may be affected differ- 
ently by the application of a code built upon total figures of the 
industry, but under the circumstances it is felt that the code as 
formulated should be immediately adopted, and actual facts obtained 
through the analysis of the statistics and reports provided for in 
the code should iDecome the basis in the future for any revisions 
required to provide properly for the specific needs of subdivisions 
of the industry. 

Minimum Wages and Hours of Labor 

The Wool Textile Industry Code provides a minimum wage of 
$14 in the North and $13 in the South for a 40-hour week. It is 
sig^iiflcant that in this code no exceptions from the minimum wage 
are made for learners or any other class of workers. 

According to a survey made by the sponsors of this code, cover- 
ing a very substantial cross-section of the entire industry, it is 
estimated that 43% of the total workers employed in the industry 
are now receiving less than $14 per week, the minimum proposed 
by this code. The average weekly wage of this entire group now 
receiving less than $14 per week is $12.40 per week. Raising this 
group to the minimum of $14 a week will provide an additional 
weehly total pay roll for the industry of approximately $100,000. 

By reason of shortening hours, as provided by this Code, approxi- 
mately 27,000 workers will be added to wool textile mills pay rolls 
to operate the industry on the basis of the 1929 level of activity. The 
addition of these 27,000 workers even at a minimum of $14 per week 
would add an additional $378,000 weekly pay roll. Adding this 
figure of $378,000 and the $100,000 accounted for above will mean the 
addition of approximately $478,000 per week to the pay roll of the 
industry, or $23,900,000 annually on a basis of full-time earnings, in 
addition to the amount added by reason of raising the wages of 
the 57% of the wage earners in the industry now earning $14 or 
more per week on a^ full-time week basis. 

Wliile no similar' cross-section study of wages for the industry is 
available for 1929, the United States Bureau of Labor Statistics in 
its study of wages and hours in the woolen and worsted textile indus- 
try published June 1929, indicated that female doffers, one of the 
lowest paid classifications of the industry, were paid on an average 
of 28.4 cents per hour in the year 1928, which rate may be considered 
comparable to the 35-cent-an-hour minimum provided in this code. 

In 1929 there were approximately 147,000 wage earners employed 
in the wool textile industry. The application of the 40-hour week 
proposed by this code would require the total employment of 
approximately 173,000 workers to produce the 1929 volume, or 
approximately 18% more than the number employed on the average 
in the year 1929. 

The sponsors of the code have made the following recommen- 
dations : 



36 

" The amendment to Section III prohibits the improper speeding 
up of work (stretch-outs) beyond the present prevailing practices. 
In adopting this provision, we wish emphatically to record our 
belief that improvements in industrial methods, if applied scientifi- 
cally, have always resulted in benefits both to labor and the public. 
These benefits must be preserved. On the other hand, the unscien- 
tific application of this principle — the so-called stretch-out system — 
may have been detrimental to labor. In order to prevent abuses, 
without hampering progress, we hereby request the Administrator 
to appoint a conmiittee to study this problem in order to insure a 
practical definition of improper speeding up of work, and to avoid 
its harmful results." 

When the labor representatives clearly understood that the mini- 
mum wage proposed in the code applied without qualification or 
exception, to learners, apprentices and casual labor alike, they at once 
concurred in the provisions of the code. 

Machinert-Hour Limitation 

The Code provides for limitation of the hours of machinery opera- 
tion as a measure designed to stabilize employment and production. 
In arriving at a basis for machinery-hour limitation the sponsors of 
the code first gave consideration to the number of looms and spindles 
available for economical and effective use. The average demand for 
the 10-year period from 1923 to 1932 was computed in terms of 
machine-hours required. After making allowances for plant effi- 
ciency, balance of preparatory machinery, and especially for normal 
seasonal variations, it was estimated that if every mill in the industry 
operated two shifts constantly approximately 69 plant-hours would 
be required per week to produce at the average 10-year (1923-32) rate 
of consumption. 

The 2 shifts of 40 machine-hours are required to maintain a 69-hour 
machine-hour schedule, as only 80% of the looms in either a Woolen 
or a Worsted Mill are available for operation at any one time. 

The provision in the Code regulating machinery hours was the 
only point at issue upon which a minority of the industry took ex- 
ception. This minority withdrew its objection in favor of the 
majority. It %ms a fine exhihitimi of sport smanship and unselfish- 
ness. A thorough analysis of this particular problem will be under- 
taken immediately to obtain the actual facts by accurate statistical 
study and research. 

In this connection it is recommended that the Administrator 
appoint a committee of five, consisting of one of recognized expe- 
rience with technical knowledge from a textile educational institu- 
tion, one to represent the Administrator, one to represent the Bureau 
of Census, one of recognized ability in the field of economic and 
statistical research, and one of recognized ability in the wool textile 
industry, but who has no direct personal interest in the industry. 



37 

This hearing which has brought together one of the oldest and 
most highly competitive industries in the United States, might well 
serve as a fitting example of the broad, liberal give-and-take attitude 
which the National Industrial Kecovery Act and the clarifying state- 
ments which have been broadcast from Washington have created in 
the minds of American Industrialists. 
Respectfully submitted, 

Hugh S. Johnson, 

A dminis trator. 



CODE OF FAIR COMPETITION 

FOR THE 

WOOL TEXTILE INDUSTRY 



To effectuate the policy of Title I of the National Industry Recov- 
ery Act, during the period of the emergency, by reducing unemploj^- 
ment, improving the standards of labor, eliminating practices 
inimical to the interests of the public, employees, and employers, and 
otherwise to improve the condition of the wool manufacturing 
industry, to increase the consumption of industrial and agricultural 
products by increasing purchasing power, and in other respects, the 
following provisions are established as a code of fair competition 
for the wool textile industry : 

I — Definitions 

As used herein the term " wool textile industry " shall include the 
following branches: Manufacture of worsted men's wear, worsted 
women's wear, carded men's wear, carded women's wear, blankets, 
cotton warp fabrics, reworked wool, knitted woolen goods, worsted 
sales yarn (Bradford System), worsted sales yarn (French System), 
carded sales yarn, and combing, wool scouring and carbonizing, and 
such other related branches as may from time to time be included 
under the provisions of this code. 

The term " employers " shall mean all persons who employ labor 
in the conduct of any branch of the wool textile industry, as defined 
above. 

The term " employees " shall mean all persons employed in the 
conduct of any branch of the wool textile industry, as defined above. 

The term "effective date " shall mean August 14, 1933, or^ if this 
code shall not have been approved by the President at least two weeks 
prior to that date, then the second Monday after such approval. 

The term " person " shall mean any individual, partnership, asso- 
ciation, trust, or corporation. 

II — Minimum Wage 

On and after the effective date the wages that shall be paid by 
any employer to any employee employed North of the Mason and 
Dixon Line shall be at not less than the rate of 35(/' an hour, or of $14 
per week for forty hours of labor. 

On and after the effective date the wages that shall be paid by 
any employer to any employee employed South of the Mason and 
Dixon Line shall be at not less than the rate of 32^^'' an hour, or of 
$13 per week for forty hours of labor. 

(38) 



39 

As to wages of employees now receiving not less than the minimum 
wage established by this code, no employer shall, on or after the 
effective date, pay any such employee a wage rate which will yield 
a less wage for a work week of forty hours than such employee was 
receiving for the same class of work for the established longer week 
of forty-eight hours or more prevailing prior to the effective date. 

Ill — Hours of Labor 

On and after the effective date no employer shall employ any em- 
ployee in excess of forty hours per week, this, however, not to apply 
to hours of labor for repairshop crews, engineers, electricians, fire- 
men, office, sales, and supervisory staff, shipping, watching, and 
outside crews. 

Until adoption of further provisions of this code that may prove 
necessary to prevent any improper speeding up of work (stretch- 
outs), no employee of any mill in the wool textile industry shall be 
required to do any work in excess of the practices as to the class of 
work of such employee prevailing on July 1, 1933, unless such 
increase is submitted to and approved by the Administrator. 

IV — Hours or Operation of Machinery 

On and after the effective date no employer shall operate any comb 
or any spinning spindle or any loom or any knitting machine for 
more than two shifts of forty hours each per week. 

V — Employment of Minors 

On and after the effective date employers shall not employ any 
minor under the age of sixteen years. 

VI — Reports 

For the purpose of supplying the President and the Administrator 
with requisite data as to the observance and effectiveness of this code, 
and as to whether the wool textile industry is taking appropriate 
steps to enable it intelligently to adjust its hours of labor, wages, 
and productive capacity to changing demands of consumers, indus- 
trial trends, and other conditions in accordance with the declared 
policy of the National Industrial Recovery Act, each employer shall 
furnish regular reports as hereinafter provided. The National Asso- 
ciation of Wool Manufacturers, 229 Fourth Avenue, New York City, 
is hereby constituted the agency to provide for the collection and 
receipt of such reports and for the forwarding of the substance of 
such reports to the President, the Association to provide for receiving 
and holding such reports themselves in confidence. Such reports 
shall be in such form, and shall be furnished at such intervals, as 
shall be prescribed by the Association, and shall contain such infor- 
mation relevant to the purposes of this code, as shall be prescribed 
by the Association from time to time, including information with 
respect to the following or related subjects: 

1. Employment, hours, wages, and wage rates. 



40 

2. Production, orders, billings, and stocks (in process and finished) 
of products manufactured. 

3. Financial and cost data, 

4. Activity, purchases, sales, and scrapping of machinery. 

5. Consumption and stocks of raw materials. 

VII — Prior Contracts 

It is hereby declared to be the policy of this code that where the 
costs of executing contracts for wool or worsted yarns or textiles, 
entered into prior to the effective date of this code, are increased as 
a result of the operation of provisions of this code, appropriate ad- 
justments of such contracts should be made so as to reflect such 
increased costs, and, further, that where the performance of orders 
for wool or worsted yarns or textiles, accepted prior to the effective 
date of this code, is delayed or prolonged as a result of the operation 
of provisions of this code, appropriate additional time should be 
allowed for the completion of such orders. The National Associa- 
tion of Wool Manufacturers is hereby constituted an agency to assist 
in effecting such adjustments, where such adjustments are not agreed 
upon by the parties. 

VIII — Provisions from Recovery Act 

Employers shall comply with the requirements of the National 
Industrial Recovery Act as follows : 

1. That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection ; 

2. That no employee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and 

3. That employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

IX — Cancellation or Modification 

This code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with Sec. 10 (b) 
of Title I of the National Industrial Recovery Act, from time to 
time to cancel or modify any order, approval, license, rule, or regu- 
lation issued under Title I of said Act. 

X — Changes and Additions 

Such of the provisions of this code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated in such 
manner as may be indicated by the needs of the public, by changes 



41 

in circumstances, or by experience; all the provisions of this code, 
unless so modified or eliminated, shall remain in effect until the 
expiration date of Title I of the National Industrial Recovery Act. 
In order to enable the industry to conduct its operations subject 
to the provisions of this code, to establish fair trade practices within 
the industry and with those dealing with the industry, and otherwise 
to effectuate the purposes of Title I of the National Industrial Re- 
covery Act, supplementary provisions of this code or additional 
codes may be submitted from time to time for the approval of the 
President. 

XI — Partial Invalidity 

If any provision of this code is declared invalid or unenforceable, 
the remaining provisions thereof shall nevertheless continue in full 
force and effect in the same manner as if they had been separately 
presented for approval and approved by the President. 



Approved Code No. 3. 
Registry No. 286-04. 



O 



Approved Code No, 4 
CODE OF FAIR COMPETITION 

FOR THE 

ELECTRICAL MANUFACTURING INDUSTRY 

As Approved on August 4, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Electrical Manufacturing Industry, and 
hearings having been held thereon and the Administrator having 
rendered his report containing an anal3^sis of the said Code of Fair 
Competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of 
clauses (1) and (2) of subsection (a) of Section 3 of the said Act 
have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to tlie authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations 
and findings of the Administrator and do order that the said Code 
of Fair Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Adminislrator. 

The White House, 

Aug^ist i, 1933. 

29232° 29G-5&— 84 (43) 



To the Pkesidemt: 

Introduction 

This is a report of the Hearing on the Code of Fair Competition 
for the Electrical Manufacturing Industry in the United States, 
conducted in the Caucus Room of the New House Office Building 
in Washington, D.C., on July 19th and 21st, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

General Characteristics or the Industry 

According to the report of 1929 of the Bureau of Census, the 
Electrical Manufacturing Industry is declared to embrace establish- 
ments engaged primarily in the manufacture of machineiy, appa- 
ratus and supplies for employment directly in the generation, stor- 
age, transmission, or utilization of electrical energy. Under this 
classification by the Census Bureau is included electrical machinery, 
such as motors and generators, batteries^ conduits, control apparatus, 
fans, household apparatus, insulated wire and cable, lamps, switch- 
board equipment, transformers, wiring devices, and a great number 
of other groups. However, in the actual compilation of the statistics 
for the industry, the year of 1929, the manufacturers of radio ap- 
paratus and tubes were also included in the figures of the Census 
Bureau. It does not cover establishments principally producing 
electric-light fixtures, electric signs, motor-driven tools, mechanical 
refrigerators, washing machines, and other machines and apparatus 
constructed with built-in motors. 

Based upon such method of compilation, the Bureau of Census 
report shows the total number of wage earners employed by the Elec- 
trical Industry in the year 1929 as 328,722 persons — with a total 
pay roll of $456,377,629 — value of product sold being in excess of two 
billion dollars. 

However, the Code of Fair Competition, which is presented for 
that industry, defines the industry as including the manufacture of 
electrical apparatus, appliances, materials or supplies, and allied 
products, and further, provides that any organization or group of 
manufacturers representing a substantial part of any branch or sub- 
division of the industry may be exempted from the code by the 
Administrator, and thus permitting such subdivision or branch to 
present its own code of fair competition. As a result, it is extremely 
difficult at this time to determine exactly the subdivisions or 
branches of the electrical industry that will come under the pro- 
visions of and be regulated by the code on which this report is based. 
However, the Committee for the Industry reports that under any 
condition a substantial part of the industry has already joined with 
them in the formulation and presentation of their code and that, 
accordingly, the code, as here presented, involves the operations oT 

(44) 



45 

companies employing in excess of 125,000 persons at the present time. 
The Radio Manufacturers have ah'eacly filed a code for their indus- 
try and, accordingly, are not included in the figures as above outlined. 

In this application for the api^roval of this code, it is stated that 
the applicants confidently believed their membership to include more 
than 75% of the productive capacity of the entire electrical field. 

I find that: 

(a) the code complies in all respects with the i3ertinent provisions 
of Title I of the Act, including, without limitation, subsection (a) 
of Section 7, and subsection (b) of Section 10 thereof; and that 

(b) the National Electrical Manufacturers Asociation imposes no 
inequitable restrictions on admission to membership therein and is 
truly representative of the Electrical Manufacturing Industry; and 
that 

(c) the code is not designed to promote monopolies or to eliminate 
or oppress small enterprises and will not operate to discriminate 
against them, and will tend to effectuate the policy of Title I of the 
National Industrial Recovery Act. 

Further, that the provisions of the code will result in a substantial 
increase in wages, and that, when improvement of business requires 
the industry to operate at 60% of the 1929 volume, there will be 
employed in the industry a greater number of persons than to be 
found at any peak period of operation. 

The Code provides for wage scales and maximum hours of work 
for all oiUce employees as well as those engaged in process operations. 

Accordingly, I hereby recommend the approval of the Code of 
Fair Competition for the Electrical Manufacturing Industry. 

Respectfully submitted. 

Hugh S. Johnson, 

Administrator, 



CODE OF FAIR COMPETITION 

FOR THE 

ELECTRICAL MANUFACTURING INDUSTRY 



To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following provisions are established as a National 
Industrial Recovery Code for the Electrical Manufacturing 
Industry : 

I. Definitions. — The term " electrical manufacturing industry " as 
used herein is defined to mean the manufacture for sale of electrical 
apparatus, appliances, material or supplies, and such other electrical 
or allied products as are natural affiliates. The term "person" as 
used herein shall include natural persons, partnerships, associations, 
trusts, trustees, tiiistees in bankruptcy, receivers, and corporations. 
The term " employer " as used herein shall include every person pro- 
moting, or actively engaged in, the manufacture for sale of the 
products of the electrical manufacturing industry as herein defined, 
frovlded^ hotoever., that organizations or groups of employers rep- 
resenting a substantial part of any branch or subdivision of the 
industry may be exempted by the Administrator from the provisions 
of this code. The term " effective date " as used herein is defined to 
be the eleventh day after this code shall have been approved by the 
President of the United States. 

II. As required by Section 7 (a) of Title I of the National Indus- 
trial Recovery Act, the following provisions are conditions of this 
Code : 

"(1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; (2) that 
no employee and no one seeking employment shall be required as a 
condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing; and (3) that employers shall comply with the maxi- 
mum hours of labor, minimum rates of pay, and other conditions 
of employment, approved or prescribed by the President." 

III. (a) On and after the effective date employers shall not em- 
ploy anyone under the age of sixteen years. 

(b) On and after the effective date the minimum wage that shall 
be paid by any employer to any employee engaged in the processing 
of the products of the electrical manufacturing industry and in labor 
operations directly incident thereto shall be 400 per hour, unless 
the rate per hour for the same class of labor was on July 15, 1929, 
less than 400, in which case the rate per hour paid shall be not less 
, than the rate per hour paid on July 15, 1929, but in no event shall 

(46) 



47 

the rate per hour be less than 32^ per hour, and provided, also, that 
learners may be paid not less than 80 percent of the minimum rate 
paid determined in the manner above provided, but the number of 
learners receiving less than such minimum rate so determined shall 
not exceed 5 percent of the total number of employees engaged in 
the processing of products and in labor operations directly incident 
thereto. 

(c) On and after the effective date the minimum wage that shall 
be paid by any employer to all other employees, except commission 
salespeople, shall be at the rate of $15 per week ; provided, however, 
that office boys or girls, and learners may be paid not less than 80 
percent of such minimum wage, but the number of such office boys 
or girls, and learners paid at a rate of less than $15 per week shall 
not exceed 5 percent of the total number of emploj^ees covered by 
the provisions of this paragraph (c). 

(d) The minimum rate of wages provided in this Article shall 
apply to all employees in all localities, unless the Administrator or 
his representative shall fix a lower rate for particular localities. 

(e) Not later than ninety (90) days after the effective date the 
electrical manufacturing industry shall report to the Administrator 
through the Board of Governors of National Electrical Manufac- 
turers Association the action taken by all employers in adjusting 
the hourly wage rates for all employees receiving more than the 
minimum rates provided in paragraph (b) of this Article. 

IV. On and after the effective date emplo3'^ers shall not operate on 
a schedule of hours — 

(a) For employees engaged in the processing of products of the 
electrical manufacturing industry, and in labor operations directly 
incident thereto, in excess of 36 hours per week. 

(b) For all other employees, except executive, administrative, and 
supervisory employees, and traveling and commission salespeople, in 
excess of 40 hours per week. 

Provided^ however^ That these limitations shall not apply to those 
branches of the electrical manufacturing industry in which seasonal 
or peak demand places an unusual and temporary burden upon such 
branches ; in such cases such number of hours may be worked as are 
required by the necessities of the situation, but at the end of each 
calendar month every employer shall report to the Administrator 
through the Board of Governors of National Electrical Manufactur- 
ers Association, in such detail as may be required, the number of 
man-hours worked in that month on account of seasonal or peak 
demand requirements, and the ratio which said man-hours bear to 
the total number of man-hours of labor during said month ; and 

Provided^ further^ That these limitations shall not apply in cases 
of emergency, but at the end of each calendar month every employer 
shall report to the supervisory agency, hereinafter provided for, in 
such detail as may be required, the number of man-hours worked in 
that month for emergency reasons and the ratio which said emer- 
gency man-hours bear to the total number of man-hours of labor 
during said month. 

V. National Electrical Manufacturers Association is hereby desig- 
nated the agency for administering, supervising, and promoting the 
performance of the provisions of this code by the members of the 
electrical manufacturing industry. 



48 

With a view to keeping the President of the United States and the 
Administrator informed as to the observance or nonobservance of 
this Code and as t6' whether the electrical manufacturing industry- 
is taldng appropriate steps to effectuate in all respects the declared 
policy of the National Industrial Recovery Act, each employer shall, 
not less than once in each year, prepare and file with the Board of 
Governors or the Executive Committee of the National Electrical 
Manufacturers Association an earnings statement and balance sheet 
in a form approved by said Board of Governors or said Executive 
Committee or in a form acceptable to any recognized stock exchange. 
Each employer shall likewise prepare and file with such person or 
organization as the Board of Governors or the Executive Committee 
of National Electrical Manufacturers Association may designate and 
at such times and in such manner as may be prescribed, statistics of 
plant capacity, volume of production, volume of sales in units and 
dollars, orders received, unfilled orders, stocks on hand, inventory, 
both raw and finished, number of employees, wage rates, employee 
earnings, hours of work, and such other data or information as the 
Board of Governors or the Executive Committee of National 
Electrical Manufacturers Association may from time to time require. 

VI. Except as otherwise provided in the National Industrial Re- 
covery Act all statistics, data, and information filed in accordance 
with the provisions of Article V shall be confidential, and the statis- 
tics, data, and information of one employer shall not be revealed to 
any other employer except that for the purpose of facilitating the 
administration and enforcement of the provisions of this code, the 
Board of Governors, or the Executive Committee of National Elec- 
trical Manufacturers Association, by their duly authorized repre- 
sentatives (who shall not be in the employ of any employer affected 
by this code), shall have access to any and all statistics, data, and 
information that may be furnished in accordance with the provisions 
of this code. 

VII. Any employer may participate in any endeavors of National 
Electrical Manufacturers Association in the preparation of any re- 
visions of, or additions or supplements to this code by accepting the 
proper pro rata share of the cost and responsibility of creating and 
administering it, either by becoming a member of National Electrical 
Manufacturers Association, or by paying to it an amount equal to the 
dues from time to time provided to be paid by a member in like 
situation of National Electrical Manufacturers Association. 

VIII. Every employer shall use an accounting system which con- 
forms to the principles of and is at least as detailed and complete 
as the uniform and standard method of accounting set forth in the 
Sixth Edition of the Manual of Accounting, prepared and published 
by the National Electrical Manufacturers Association, and a costing 
system which conforms to the principles of and is at least as detailed 
and complete as the standard and uniform method of costing to be 
formulated or approved by the Board of Governors or Executive 
Committee of National Electrical Manufacturers Association, with 
such variations therefrom as may be required by the individual con- 
ditions affecting any employers or group of employers and as niay 
be approved by the Board of Governors of the Executive Committee 
of National Electrical Manufacturers Association or the supervisory 



49 

agency and made supplements to the said Manual of Accounting or 
method of costing. 

IX. No employer shall sell or exchange any product of his manu- 
facture at a price or upon such terms or conditions that will result 
in the customer paying for the goods received less than the cost to 
the seller, determined in accordance with the uniform and standard 
method of costing hereinabove prescribed; provided, however, that 
dropped lines, seconds, or inventories which must be converted into 
cash to meet emergency needs may be disposed of in such manner 
and on such terms and conditions as the supervisory agency may 
approve, and as are necessary to move such product into buyers' 
hands ; and provided further, that selling below cost in order to meet 
existing competition on products of equivalent design, character, 
quality, or specifications shall not be deemed a violation of this 
Article if provision therefor is made in supplemental codes for any 
branch or subdivision of the industry which may be hereafter pre- 
pared and duly approved by the Administrator. 

X. If the supervisory agency determines that in any branch or sub- 
division of the electrical manufacturing industry it has been the 
generally recognized practice to sell a specified product on the basis 
of printed net price lists, or price lists with discount sheets, and 
fixed terms of payment which are distributed to the trade, each 
manufacturer of such product shall, within ten (10) days after 
notice of such determination, file with the supervisory agency a net 
price list or a price list and discount sheet, as the case may be, indi- 
vidually prepared by him showing his current prices, or prices and 
discounts, and terms of payment, and the supervisory agency shall 
immediately send copies thereof to all known manufacturers of such 
specified product. Revised price lists with or without discount sheets 
may be filed from time to time thereafter with the supervisory 
agency by any manufacturer of such product, to become effective 
upon the date specified therein, but such revised price lists and 
discount sheets shall be filed with the supervisory agency ten days 
in advance of the effective date, unless the supervisory agency shall 
authorize a shorter period. Copies of revised price lists and discount 
sheets, with notice of the effective date specified, shall be immedi- 
ately sent to all known manufacturers of such product, who there- 
upon may file, if they so desire, revisions of their price lists and/or 
discount sheets, which shall become effective upon the date when the 
revised price list or discount sheet first filed shall go into effect. 

If the supervisory agency shall determine that in any branch or 
subdivision of the electrical manufacturing industry not now sell- 
ing its product on the basis of jDrice lists with or without discount 
sheets with fixed terms of payment the distribution or marketing 
conditions in said branch or subdivision are similar to or the same 
as the distribution or marketing conditions in a branch or subdi- 
vision of the industry where the use of price lists with or without 
discount sheets is well recognized, and that a system of selling on 
net price lists or price lists and discount sheets should be put into 
effect in such branch or subdivision, each manufacturer of the prod- 
uct or products of such branch or subdivision shall within twenty 
(20) days after notice of such determination file Avith the super- 
visory agency net price lists or price lists and discount sheets, as the 
supervisory agency may direct, containing fixed terms of payment, 



50 

showing his prices and discounts and terms of payment, and such 
price lists and/or discount sheets and terms of payment may be 
revised in the manner hereinabove provided. 

No employer shall sell directly or indirectly by any means what- 
soever any product of the industry covered by the provisions of this 
Article at a price lower or at discounts greater or on more favorable 
terms of payment than those provided in his current net price lists 
or price lists and discount sheets. 

XI. Aggregations of employers having a common interest and 
common problems will be grouped by National Electrical Manufac- 
turers Association for administrative purposes in various subdivi- 
sions or product classifications and report of such grouping made to 
the Administrator. 

XII. In each subdivision or product classification there will be 
a supervisory agency approved or appointed by the Board of Gov- 
ernors or the Executive Committee of National Electrical Manu- 
facturers Association and report thereof made to the Administrator. 
If formal complaint is made to National Electrical Manufacturers 
Association that the provisions of this code have been violated by 
any employer, the proper supervisory agency shall investigate the 
facts and to that end ma}' cause such examination or audit to be 
made as may be deemed necessary. 

XIII. The President may from time to time cancel or modify any 
order, approval, license, rule, or regulation issued under Title I of 
the National Industrial Recovery Act. 

XIV. Such of the provisions of this code as are not required by 
the National Industrial Recovery Act to be included herein may, 
with the approval of the President of the United States, be modified 
or eliminated as changed circumstances or experiences may indicate. 
This code is intended to be a basic code, and study of the trade prac- 
tices of the electrical manufacturing industry will be continued by 
the Board of Governors of National Electrical Manufacturers Asso- 
ciation with the intention of submitting to the Administrator for 
approval from time to time, additions to this code applicable to 
all employers in the electrical manufacturing industry and supple- 
mental codes applicable to one or more branches or subdivisions or 
product classifications of the electrical manufacturing industry, such 
supplemental codes, however, to conform to and be consistent with 
the provisions of this code as now constituted or hereafter changed. 

XV. If any employer of labor in the electrical manufacturing 
industry is also an employer of labor in any other industry, the 
provisions of this code shall apply to and affect only that part of 
his business which is included in the electrical manufacturing 
industry. 

Approved Code No. 4. 
Registry No. 1308/10. 

o 



Approved Code No. 5 

CODE OF FAIR COMPETITION 

FOR THE 

COAT AND SUIT INDUSTRY 

As Approved on August 4, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Coat and Suit Industry, and hearings 
having been held thereon, and the Administrator having rendered 
his report containing an analysis of the said Code of Fair Compe- 
tition, together with his recommendations and findings with respect 
thereto, and the Administrator having found that the said Code of 
Fair Competition complies in all respects with the pertinent pro- 
visions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of Section 3 of the said Act have been 
met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16. 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of Fair 
Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

August 4, 1933. 

29904 296-127- 34 (51) 



CODE OF FAIR COMPETITION 

FOR THE 

COAT AND SUIT INDUSTRY 

Part I — Labor 

To effectuate the policy of Title I of the National Industrial Re- 
covery Act, during the period of the emergency, by reducing and re- 
lieving unemployment, improving the standards of labor, eliminating 
competitive practices destructive of the interests of the public, em- 
ployees and employers and otherwise rehabilitating the coat and suit 
industry, the following provisions are established as a code of fair 
competition for the coat and suit industry: 

FIRST DEFINITIONS 

The term "effective date" as used herein is defined to be the first 
Monday following the approval of this code by the President. 

The term "persons" as used herein shall include natural persons, 
partnerships, associations, and corporations. 

The term "employer" as used herein shall include every person 
(whether individual, partnership, association, or corporation) en- 
gaged in the production and/or wholesale distribution of coats and 
suits, as contractor, sub-contractor, manufacturer, sub-manufacturer,^ 
wholesaler, or jobber. 

The term "manufacturing employee" as used herein is defined to 
mean one who is engaged in the cutting, machine operating, hand- 
sewing, pressing, basting, examining, sample making, finishing, 
draping, pinning, busheling, grading, or any other hand or machine 
operation upon garments in any factory in the coat and suit industry. 

The term "non-manufacturing employee" as used herein is defined 
to mean all persons engaged in the coat and suit industry not included 
in any of the above classifications. 

The term "coat and suit industry" as used herein is defined to 
include the manufacture and/or wholesale distribution of women's, 
misses', children's, and infants' coats, jackets, capes, wraps, riding 
habits, knickers, suits, ensembles, and sldrts, in whole or in part, 
made of woolen, silk (only when made into tailored garments), velvet, 
plush, and other woven or purchased knitted materials. In such 
instances where a single concern is engaged in the manufacture and/or 
wholesale distribution of such commodities as well as the manufac- 
ture and/or wholesale distribution of other commodities not described 
above, such concerns will be deemed a part of the coat and suit 
industry to the extent of that portion of their business that lies in 
the field herein defined. 

(52) 



53 

For the purposes of administration two areas have been estabHshed: 
the Eastern Area shall include the states of Maine, New Hampsliire, 
Vermont, Massachusetts, Rhode Island, Connecticut, New York, 
Pennsylvania, New Jersey, Delaware, and Maryland; the Western 
Area shall include all parts of the U.S.A. not included in the Eastern 
Area. The Baltimore market is included in the Eastern Area with 
the provision that the employers association therein may request the 
appointment of a Commission by the Administrator to determine 
after investigation what modifications should be granted, if any. 

SECOND 

On and after the effective date, employers in the coat and suit 
industry shall not employ as manufacturing employees any persons 
under the age of eighteen (18) years, and as non-manufacturing 
employees any persons under the age of sixteen (16) years. 

THIRD 

On and after the effective date, employers in the coat and suit 
industry shall not operate on a schedule of hours of labor for their 
employees, except clerical and service employees working in office 
and shipping departments, in excess of thirty-five (35) hours per week. 

Such work shall be divided into five (5) working days, the working 
hours to be from 8:30 a.m. to 4:30 p.m. with one hour intervalfor 
lunch. Non-manufacturing employees shall not work in excess of 
forty (40) hours per week. There shall be no more than one shift of 
workers in any day. No overtime is permitted except that the 
Administrator may grant an extension of hours in the busy season 
when and if, in his judgment, labor in the industry is fully employed 
and conditions make such an order advisable. 

This provision shall apply to any individual who may do the work 
of a manufacturing employee as defined herein. 

No home work shall be allowed and no work shall be done or per- 
mitted in tenement houses, basements or in any unsanitary buildings 
or buildings unsafe on account of fire risks. 

FOURTH 

On and after the effective date, the basic minimum wage that shall 
be paid by employers in the coat and suit industry to any of their 
non-manufacturing employees shall be at the rate of $14 per week. 

FIFTH 

Eastern Area. — On and after the effective date, manufacturing em- 
ployees for the Eastern Area enumerated below shall be paid not less 
than the following minimum wage scale, for each full week's work: 

Per week 

Coat and Suit Cutter $47. 00 

Samplemakers 40. 00 

Examiners 36. 00 

Drapers 29. 00 

Begraders on skirts 32. 00 

Bushelmen who also do Pinning, Marking, and general work on gar- 
ments 36. 00 



54 

The employers in the crafts enumerated below shall work on a 
piece rate basis. They shall receive guaranteed minimum wages, 
not less than the following: perhour 

Jacket, Coat, Reefer & Dress Operators, Male $1.00 

Jacket, Coat, Reefer & Dress Operators, Female . 90 

Skirt Operators, Male . 90 

Skirt Operators, Female . 80 

Piece Tailors . 90 

Reefer, Jacket, and Coat Finishers . 85 

Jacket, Coat & Reefer Finishers' Helpers . 63 

Jacket, Coat, Reefer & Dress Upper Pressers 1. 00 

Jacket, Coat, Reefer & Dress Under Pressers . 90 

Skirt Upper Pressers • . 90 

Skirt Under Pressers . 85 

Skirt Basters . 60 

Skirt Finishers . 60 

Machine Pressers 1. 30 

All manufacturers in the Eastern Area operating outside the hmits 
of New York and Philadelphia shall operate on a scale ten (10) per- 
cent less than provided herein for the Eastern Area. 

In fixing piece work rates on garments, the same shall be computed 
on a basis to yield to the worker of average skill of the various crafts 
for each hour of continuous work, the following amounts: 

Per hour 

Jacket, Coat, Reefer & Dress Operators $1. 50 

Skirt Operators 1. 40 

Piece Tailors 1. 30 

Reefer, Jacket and Coat Finishers 1. 25 

Jacket, Coat & Reefer Finishers Helpers 1. 00 

Jacket, Coat & Reefer & Dress upper Pressers 1. 35 

Jacket, Coat, Reefer & Dress under Pressers 1. 25 

Skirt Upper Pressers 1. 25 

Skirt Under Pressers 1. 25 

Skirt Basters... . 80 

Skirt Finishers . 70 

Machine Pressers 1. 80 

Western Area. — On and after the effective date, manufacturing 
employees, for the Western Area, enumerated below, shall be paid 
not less than the following minimum wage scale, for each full week's 
work: 

Per week 

Coat and Suit Cutters $41. 00 

Semi-skilled Cutters 39. 00 

Clothing and Lining Pliers 33. 00 

Filers 28.00 

Canvas Cutters 26. 00 

Apprentice Cutters for six months 22. 00 

Sample Makers 40. 00 

Examiners 32. 50 

The employees in the crafts enumerated below shall work on a piece- 
rate basis. They shall receive guaranteed minimum wages, not less 
than the following: 

Male, per hour 

Jacket, Coat, Reefer & Dress Operators $0. 85 

Skirt Operator • 75 

Jacket, Coat, Reefer and Dress Upper Pressers .85 

Jacket, Coat, Reefers and Dress Under Pressers .77 

Jacket, Coat, Reefer and Dress Part Pressers . 65 

Jacket, Coat, Reefer Finishers _- •_- • 75 

Apprentices in the above classifications for a period not exceeding six 

months .60 



55 

Female, per hour 

Jacket, Coat, Reefer and Dress Operators $0. 75 

Jacket, Coat, Reefer and Dress Operators (semi-skilled) .62 

Skirt Operators ■ 70 

Lining Ironers • 60 

Jacket, Coat, Reefer and Dress Finishers .63 

Jacket, Coat, Reefer Finisher's Helpers . 53 

Jacket, Coat, Reefer, Skirt Buttonsewers . 53 

Apprentices in the above classifications for a period not exceeding six 

months .47 

In fixing piece-work rates on garments, the same shall be computed 
on basis to yield to the worker of average skill of the various crafts for 
each hour of continuous work the following amounts: 

Male, per hour 

Jacket, Coat, Reefer, and Dress Operators $1. 26 

Skirt Operator 1. 15 

Jacket, Coat, Reefer, and Dress Upper Pressers 1. 26 

Jacket, Coat, Reefer, and Dress Under Pressers 1. 15 

Jacket, Coat, Reefer, and Dress Part Pressers . 92 

Jacket, Coat, and Reefer Finishers 1. 10 

Female, per hour 

Jacket, Coat, Reefer, and Dress Operators $0. 95 

Jacket, Coat, Reefer, and Dress Operators (semi-skilled) . 88 

Skirt Operators . 90 

Lining Ironers . 82 

Jacket, Coat, Reefer, and Dress Finishers . 84 

Jacket, Coat, Reefer Finishers' Helpers .70 

Jacket, Coat, Reefer, Skirt Buttonsewers . 70 

The Western Area shall operate on the basis of the present existing 
classifications subject to further study by the Coat and Suit Code 
Authority who will make recommendations to the Administrator 
for such changes as will eliminate such competitive irregularities as 
may be found to exist. 

Both Areas. — Compensation for employment now in excess of the 
minimum wage set forth herein shall not be reduced, notwithstanding 
that the hours worked in such employment may be hereby reduced. 

SIXTH 

During the years 1924 and 1925, an unemployment insurance fund 
was established and existed in the coat and suit industry. It was 
discontinued because of the general disorganization of the industry. 
There is every hope and expectation on the part of the employers and 
employees that through the National Industrial Recovery Act steps 
may again be taken to put into active operation an unemployment 
insurance fund. Accordingly, such fund shall be resumed as soon as 
the enforcement of uniform labor standards and general stabihzation 
have reached a point at which the provisions for payment of unemploy- 
ment insurance contributions can be generally enforced throughout 
the industry. The time when the conditions in the industry shall have 
reached a point when such fund may be reestablished shall be deter- 
mined by the Code Authority hereinafter mentioned and the Admin- 
istrator. Wlien it is reestablished, it shall be in accordance with such 
provisions as shall be determined upon by the said Code Authority 
and the Administrator. 



56 

SEVENTH 

Further to effectuate the provisions of this Code and to eliminate 
substandard and sweatshop conditions in the coat and suit industry, 
all garments manufactured or distributed shall bear an N.R.A. label, 
which shall be attached to every garment. It shall bear a registra- 
tion number specially assigned to each employer in the industry and 
remain attached to such garment when placed on sale by the retaU 
distributor. All employers, as herein defined, whether or not mem- 
bers of the associations herein mentioned, may apply to the Coat and 
Suit Code Authority for a permit to use the N.R.A. label, which per- 
mit to use the label shall be granted to them, but only if they comply 
with the standards set forth in this code. The Coat and Suit Code 
Authority hereinafter mentioned shall establish the appropriate ma- 
chinery for the issuance of labels, inspection, examination, and super- 
vision of employers engaged in the industry of such garments. 

EIGHTH 

The responsibility for the administration and enforcement of this 
code shall be vested in a Coat and Suit Code Authority. 

This Coat and Suit Code Authority shall be constituted as follows: 

Two members selected from each of the three associations sub- 
mitting this code; 

Two members selected by the International Ladies' Garment 
Workers Union; 

Two members selected collectively by the associations in the 
Western Area. 

The Coat and Suit Code Authority is expressly authorized to 
deputize its representatives to do and perform such acts as may be 
necessary to carry into eft"ect the provisions, purpose, and intent of 
this Code. 

The Coat and Suit Code Authority shall be empowered to consider 
and act upon the following recommendations: 

(a) Recommendations as to the requirement by the Administra- 
tor of such other and further reports from persons engaged in the 
Coat and Suit industry of statistical information and the keeping of 
uniform accounts as may be required to secure the proper observances 
of the Code and promote the proper balancing of production, dis- 
tribution, and consumption and the stabilization of the industry and 
employment. 

(b) Recommendations for the setting up of a Service Bureau for 
engineering, accounting, credit, or any other purposes that may aid 
in the conditions of this emergency and the requirements of this Code. 

(c) Recommendations for the making of rules by the Administrator 
as to practices by persons engaged in the coat and suit industry as to 
methods and conditions of trading, the naming and reporting of 
prices which may be appropriate to avoid discrimination, to promote 
the stabilization of the industry, to prevent and eliminate unfair and 
destructive prices and practices. 

(d) Recommendations for regulating the disposal of distress mer- 
chandise in a way that will secure the protection of the owners thereof 
and at the same time promote sound and stable conditions in the 
industrv. 



57 

(e) Recommendations as to the making available to the suppliers 
of credit to those engaged in the industry all information regarding 
terms of and actual functioning of any or all of the provisions of the 
Code, the conditions of the industry and regarding the operations of 
any and all persons engaged in the industry and covered by this 
Code, to the end that during the period of the emergency available 
credit may be adapted to the needs of the coat and suit industry, 
considered as a whole, and to the needs of the small as well as of the 
large units. 

(f) E-Qcommendations for dealing with any inequaUties that may 
othermse arise that may endanger the stability of the industry and/or 
production and employment. 

Such recommendations, when approved by the Administrator shall 
have the same force and effect as any other provision of this Code. 

The Coat and Suit Code Authority shall have power to examine all 
books of accounts and records of employers so far as necessary to 
ascertain whether they are observing the provisions of this Code, and 
all employers shall submit their books and records for such exami- 
nation. 

The Coat and Suit Code Authority shall have power to appoint a 
director, a staff of accountants, and such other employees as may be 
required for the effective discharge of its functions. 

The expense of maintaining the Coat and Suit Code Authority shall 
be borne by the International Ladies' Garment Workers Union, the 
parties to this Code, and all other employers in the industry in such 
proportions and amounts and in such manner as may be determined 
by the Coat and Suit Code Authority. 

The Coat and Suit Code Authority shall proceed through subcom- 
mittees to evolve standards for size and quahty, including shrinkage 
tolerance and color fastness and protection against piracy in styles, and 
shall report within three months after the taking effect of this Code, 
such standards to be effective three months thereafter. 

NINTH 

It is recognized that in the Eastern and Western Areas the methods 
employed to a very large extent in the production of garments in the 
coat and suit industry necessitate the employment of contractors and 
suJD-manufacturers, Accordingly, all firms engaged in the coat and 
suit industry who cause their garments thus to be made by contractors 
and sub-manufacturers as aforesaid, shall designate the contractors 
actually required, shall confine and distribute their work equitably 
to and among them, and shall adhere to the payment of rates for 
such production in an amount sufficient to enable the contractor or 
sub-manufacturer to pay the employees the wages and earnings 
provided for in this Code, together with an allowance for the con- 
tractor's overhead. 

• To insure the observance of this provision, the committee named 
in this Code, together with the Administrator, shall formulate pro- 
visions to carry into effect the purpose and intent hereof. 



58 

TENTH 

Employers in the coat and suit industry shall comply with the 
requirements of the National Industrial Recovery Act as follows: 

(a) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from interference, restraint, or coercion of employers of labor, 
or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required, 
as a condition of employment, to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his own 
choosing; and 

(c) Employers shall comply wdth the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

ELEVENTH 

(a) This Code is not designed to promote monopolies and shall not 
be availed of for that purpose. 

(b) The provisions of this Code shall not be so interpreted or 
administered as to eliminate or oppress small enterprises or to 
discriminate against them. 

TWELFTH 

Wherever in this industry agreements between employers and 
employees arrived at by collective bargaining shall exist or shall 
come into existence hereafter, all the provisions of such agreements 
with reference to labor standards not prohibited by law and not 
inconsistent with NIRA shall be administered as though a part of 
this code. 

THIRTEENTH 

This Code and all the provisions thereof are expressly made subject 
to the right of the President, in accordance with the provision of 
Clause 10 (b) of the National Industrial Recovery Act, from time to 
time to cancel or modify any order, approval, Hcense, rule, or regula- 
tion, issued under Title I of said Act, and specifically to the right of 
the President to cancel or modify his approval of this code or any 
conditions imposed by him upon his approval thereof. 

Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, 
with the approval of the President, be modified or eliminated as 
changes in circumstances or experience may indicate. It is con- 
templated that from time to time supplementary provisions to this 
Code or additional codes will be submitted for approval of the 
President to prevent unfair competition in price and other unfair 
and destructive competitive practices and to effectuate the other 
purposes and policies of Title I of the National Industrial Recovery 
Act consistent with the provisions hereof. 



Approved Code No. .5. 
Registry No. 215-1-10. 



o 



Approved Code No. 6 
CODE OF FAIR COMPETITION 

FOR THE 

LACE MANUFACTURING INDUSTRY 

As Approved on August 14, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

A Code of Fair Competition for the Lace Manufacturing Industry, 
having been heretofore submitted to the National Recovery Adminis- 
tration, hearings having been held thereon, and an Amended Code 
of Fair Competition having been submitted on August 7, 1933, said 
original Code and said Amended Code having been submitted by 
duly qualified and authorized representatives of the Industry com- 
plying with the Statutory requirements as representing fully 
seventy-five percent of the capacity of the Industry, and said Code 
being in full compliance with all pertinent provisions of the National 
Industrial Recovery Act, Now Therefore 

Pursuant to the authority vested in me by Title I of the National 
Recovery Act, approved June 16, 1933, on the report and recom- 
mendation of the Administrator appointed by me under the authority 
of said Act, and on consideration : 

It is ordered that the said Code of Fair Competition for the Lace 
Manufacturing Industry, as amended and submitted on July 7, 1933, 
is hereby approved, subject to the following condition : 

(l)To effectuate further the policies of the Act, a Lace Manu- 
facturing Industry Committee be created to cooperate with the 
Administrator as a Planning and Fair Practice agency for the Lace 
Manufacturing Industry, which Committee shall consist of five rep- 
resentatives of the Lace Manufacturing Industry elected by a fair 
method of selection, to be api:)roved by the Administrator, and three 
members without vote appointed by the Administrator. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dfriim's ti 'at or. 

The White House, 

August lli, 1933. 

(59) 
29849 296-128 34 



To THE President: 

INTRODT7CTION 

This is a report of the hearing on the Code of Fair Competition 
for the Lace Manufacturing Industry in the United States, con- 
ducted in Washington on July 28th, 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

In the conduct of the hearing every person who had filed a request 
for an appearance was freely heard in public, and all statutory and 
regulatory requirements were fully complied with. 

The Code which is attached was presented by duly qualified and 
authorized representatives of the industry, and complies with the 
statutory requirements, as representing fully seventy-five percent 
of the lace textile machinery in the United States. 

ECONOMIC AND STATISTICAL ANALYSIS 

The Lace Manufacturing industry in normal years has an annual 
output of about $30,000,000. It produces machine-made lace goods 
of cotton, silk, rayon, and some other materials. A majority of the 
mills purchase their yarns, some of which are imported. 

The peak year for the Lace Manufacturing Industry, not only in 
point of value of products but also in number of persons employed, 
was 1923. In that year 7,307 workers were employed. In 1931, the 
latest figures available, 6,043 workers were employed. 

Over 50 percent of this industry is located in the State of Pennsyl- 
vania. The other states in order of importance are Rhode Island, 
New York, and New Jersey. 

The number of employees by States in 1931 was as follows: 

All United States 6,043 

Pennsylvania 3, 065 

Rhode Island 972 

New York 780 

All Others 1,226 

In the Lace Manufacturing Industry a large variation in quality 
and design of product is prevalent. There are four distinct types 
of machines utilized in production and it is, therefore, particu- 
larly difficult to establish a unit of comparison. This has been recog- 
nized in the resulting adoption of " quarterage ", or 9 inches of 
width on a loom, as the most practically applicable unit. 

Due to the paucity of figures heretofore existing in the industry 
and its various branches, it has been necessary in the formulation 
of this Code to employ " quarterage ", in its application to the indus- 
try as a Avhole. 

In the absence of accurate figures it is recommended and believed 
justifiable that this Code be immediately adopted; and that actual 
facts obtained through the analysis of statistics and reports as pro- 

(60) 



61 



vided in this Code shall become the basis in the future for any 
revisions required to provide properly for the specific needs of the 
Industry. 

MINIMUM WAGES AND HOURS OF LABOR 

There is no information obtainable as to the number of workers 
actually employed at this time, nor is there any data available to 
show the actual hours the employees work. According to figures 
supplied by the United States Bureau of the Census in 1931, the 
prevailing hours of labor per week were as follows : 

Prevailing hours of icoi-k 



Hours 


Number of 

estabhsh- 

ments 


Number of 

workers 

employed 


Percent of 
total em- 
ployed 


Under 40 hours -. 


2 
2 
9 

22 
5 


482 

569 

1,626 

2.367 

960 


8.0 


40 to 44 hours -_. 


9.5 




27.1 


49 to 54 hours 


39.4 


Over 54 hours .. -- - 


16. ( 







It is, therefore, obvious that the universal adoption of the 40-hour 
maximum work week will operate to spread employment, although 
no figures are available that could be used as a basis accurately to 
predict the exact effect. 

From 1929 to 1931 wages were decreased 15.6 percent. It was 
testified at the hearing that a reduction of 10 percent took place in 
1932. The wage bill is normally about 25 percent of the value of 
product, but in 1931 the ratio of wages to value of product increased 
to 32.8 percent. 

It is not possible with the data available to determine whether or 
not the proposed minimum wage would result in any great change 
in the earnings of the workers. 



MACHINERY-HOUR LIMITATION 

This Code provides for limitation of machinery operation as a 
measure designed to increase employment and stabilize employment 
and production. 

A basis for this limitation was determined by careful computation 
of the number of machines available and the demand for the product 
thereof, making due allowances for plant efficiency, proper balance 
of product, seasonal variations, and with the general intention to 
increase employment. Two shifts of 40 machine hours are provided 
in this Code, although numerous mills have been operating full 24 
hours per day. The agreement reached by various members of the 
industry in this connection is believed to evince a commendable spirit 
of cooperation and a sincere desire to carry out the letter as well as 
the spirit of the National Industrial Recovery Act. 

A thorough analysis of this problem will be undertaken imme- 
diately and a complete compilation of accurate statistical facts will 
be made. 



62 

In order further to effectuate the policies of the Act, it is recom- 
mended that the Administrator appoint a Lace Manufacturing In- 
dustry Committee to cooperate with the Administrator as a planning 
and fair-practice agency for this Industry ; and that this committee 
consist of five representatives of the Lace Industry elected by fair 
method with the approval of the Administrator and of three mem- 
bers appointed by the Administrator, as follows; one of recognized 
experience and technical knowledge from a textile educational insti- 
tution, one to represent the Administrator, and one of recognized 
ability in the Lace Manufacturing Industry but without direct per- 
sonal interest therein. 

It is believed that this hearing, which has brought together all 
diversified branches of the Lace Manufacturing Industry is a fitting 
example of cooperative spirit in a highly competitive field and is 
exemplary of a sincere desire on the part of this Industry to manifest 
the attitude anticipated in the National Recovery Act. This spirit 
might well be emulated by all branches of American Industry. 
Respectfully submitted, 

Htjgh S. Johnson, 

A dndnistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

LACE MANUFACTURING INDUSTRY 



To effectuate the policy of Title I of the National Industrial 
Recovery Act, during the period of the emergency, by reducing and 
relieving unemployment, improving the standards of labor, elim- 
inating competitive practices destructive of the interests of the public, 
employees and employers, and otherwise reliabilitating the lace man- 
ufacturing industry and by increasing the consumption of industrial 
and agricultural products by increasing purchasing power, and in 
other respects, the following provisions are established as a code of 
fair competition for the lace manufacturing industry. 



Definitions, — The term "Lace Manufacturing Industry'', as used 
herein, is defined to mean the manufacture of the products of Levers, 
Go-through. Mechlin, Barmen, and Bobbinet machines and/or any 
and all processing thereof. 

The term *•' employees ", as used herein, shall include all persons 
employed in the conduct of such operations. 

The term '" employers " shall mean all persons who employ labor 
in the conduct of any branch of the lace manufacturing industry, 
as defined above. 

The term " productive machinery ", as used herein, is defined to 
mean Levers, Go-through, Mechlin. Barmen, and Bobbinet machines. 

The term "rack ", as used herein, shall mean 1,920 motions of a 
Levers or Go-through machine, 1,440 motions of a Bobbinet machine 
or 1,440 motions of a Mechlin machine. 

The term " effective date ", as used herein, is defined to be the 
second Monday after the approval by the President of the United 
States of this code or any part thereof or addition thereto. 

The term " persons " shall include natural persons, partnerships, 
associations, trusts, including trustees in bankruptcy and receivers 
and corporations. 

II 

On and after the effective date, the minimum wage that shall be 
paid by employers in the Lace Manufacturing Industry to any of 
the employees shall be at the rate of $13.00 per week for forty hours 
of labor, except that learners during a six weeks' apprenticeship 
shall be paid not less than 80 percent of the minimum wage and 
shall not exceed in number one learner to six craftsmen. 

Ill 

On and after the effective date employers in the Lace Manufactur- 
ing Industry shall not operate on a schedule of hours of labor for 



64 

their employees in excess of forty hours per week and they shall not 
operate productive machinery in the lace manufacturing industry 
for more than two shifts of forty hours each per week, no matter 
by whom operated. 

No one shall be employed in the lace manufacturing industry for 
more than forty hours per week except as follows : 

(a) Repair-shop crews, outside-sales force, executives, and super- 
visory staff. 

(b) Engineers, electricians, fii-emen. designers, draftsmen, and 
shipping crews; but provided further that all such employees shall 
be paid at the rate of time and one half for all hours per week over 
forty. 

(c) Provided further that any excepted employees, if employed 
other than in their stated duties, shall be restricted to fort}^ hours 
per week. 

On- and after the effective date, employers in the lace manufactur- 
ing industry shall not employ any minor under the age of sixteen 
years. 

IV 

With a view to keeping the President informed as to the observ- 
ance or nonobservance of this code of fair competition, and as to 
whether the lace manufacturing industry is taking appropriate steps 
to effectuate the declared policy of the National Industrial Recovery 
Act, each person engaged in the Lace Manufacturing Industry will 
furnish duly certified reports in substance as follows and in such 
form as may hereafter be provided. 

(a) Waf/es and Hours of Labor. — Returns for every four (4) 
weeks, showing for each of the four (4) weeks, immediately preced- 
ing, the following : 

1. Number of operatives of productive machinery employed. 

2. Total hours worked by all operatives of productive machinery. 

3. Maximum hours worked by any employee other than those 
excepted in paragraph III (a). 

4. Minimum rate per hour paid to any employee other than those 
excepted in paragraph II. 

(b) MacMnery Z>a^«.— Returns every four (4) weeks showing the 
number of quarters existing in each plant, the number of machines 
actually operated each week of each specific classification, as later 
adopteci. the total number of machine hours and racks produced each 
week of each specific classification. 

(c) Sdlea. — Returns every four (4) weeks showing the total net 
sales in dollars. _ ^ 

The American Lace Manufacturers Association (106 West 38th 
Street), New York City, is constituted the agency to collect and 
receive such reports. 

V 

To further effectuate the policies of the Act, the American Lace 
Manufacturers Association, the applicants herein, or such committee 
or committees as may hereafter be constituted by the action of the 
American Lace Manufacturers Association, is set up to cooperate 
with the Administrator as a planning and fair practice agency for the 



65 

lace manufacturing industry. Such agency may from time to time 
present to the Administrator recommendations based on conditions 
in the industry as they may develop from time to time which will 
tend to effectuate the operation of the provisions of this Code and 
the policy of the National Industrial Recovery Act, and in particular 
along the following lines : 

1. Recommendations as to the requirements by the Administrator 
of such further reports from persons engaged in the lace-manufac- 
turing industry oi statistical information and keeping of uniform 
accounts as may be required to secure the proper observance of the 
code and promote the proper balancing of production and consump- 
tion and stabilization of the industry and employment. 

2. Recommendations for the setting-up of a service bureau for 
engineering, accounting, credit, and other purposes to aid the smaller 
mills in meeting the conditions of the emergency and the require- 
ments of this code. 

3. Recommendations (1) for the requirement by the AdiTunistra- 
tor of registration by persons engaged in the lace-manufacturing 
industry of their productive machinery, (2) for the requirement 
by the Administrator that prior to the installation of additional 
productive machinery by persons engaged or engaging in the lace- 
manufacturing industry, except for the replacement of a similar 
number of now-existing machines or to parts of productive machin- 
ery to be used for replacement or maintenance of now-existing 
productive machinery, such persons shall secure certificates that such 
installation will be consistent with effectuating the policy of the 
National Industrial Recovery Act during the period of the emer- 
gency, and (3) for the granting or withholding by the Administrator 
of such certificates if so required by him. 

4. Recommendations for changes in, or exemptions from, the pro- 
visions of this code as to the working hours of machinery which will 
tend to preserve a balance of productive activity with consumption 
requirements, so that the interests of the industry and the public may 
be properly served. 

5. Recommendations for the making of requirements by the 
Administrator as to practices by persons engagecl in the lace-manu- 
facturing industry as to methods and conditions of trading, the 
naming and reporting of prices which may be appropriate to avoid 
discrimination, to promote the stabilization of the industry, to pre- 
vent and eliminate unfair and destructive competitive prices and 
practices. 

6. Recommendations for regulating the disposal of distress mer- 
chandise in a way to secure the protection of the owners and to 
promote sound and stable conditions in the industry. 

7. Recommendations as to the making available to the suppliers of 
credit to those engaged in the industry of information regarding 
terms of, and actual functioning of, any or all of the provisions of 
the Code, the conditions of the industry and regarding the opera- 
tions of any and all of the members of the industry covered by such 
code to the end that during the period of emergency available credit 
may be adapted to the needs of such industry considered as a whole 
and to the needs of the small as well as the largfe units. 



66 

8. Recommendations for dealing with aiiy inequalities that may 
otherwise arise to endanger the stability of the industry and of 
production and employment. 

Such recommendations, after hearing and when aproved by the 
President, shall have the same force and effect as any other provision 
of this Code. 

Such agency is also set up to cooperate with the Administrator in 
making investigations as to the functioning and observance of any 
of the provisions of this Code, at its own instance or on complaint 
by any person affected, and to report the same to the Administrator. 

Such agency is also set up for the purpose of investigating and 
informing the Administrator on behalf of the lace-manufacturing 
industry as to the importation of competitive articles into the United 
States in substantial quantities or increasing ratio to domestic pro- 
duction on such terms or under such conditions as to render ineffec- 
tive or seriously to endanger the maintenance of this Code and as 
an agency for making complaint to the President on behalf of the 
lace-manufacturing industry, under the j^rovisions of the National 
Industrial Recovery Act, with respect thereto. 

VI 

Where the costs of executing contracts entered into in the lace- 
manufacturing industry prior to the Approval of the President of 
the United States of this Code are increased by the application of 
the provisions of that Act to the industry, it is equitable and pro- 
motive of the purposes of the National Industrial Recovery Act that 
appropriate adjustments of such contracts to reflect such increased 
costs be arrived at by arbitral proceeding or otherwise, and the 
American Lace Manufacturers Association, the applicant for this 
Code, is constituted an agency to assist in effecting such adjustments. 

VII 

The American Lace Manufacturers Association, now situated at 
106 West 38th Street, New York City, shall be constituted the ad- 
ministrative agency in cooperation with the Administrator, in 
accordance with the provisions of this Code. 

VIII 

Any employer may participate in the endeavors of the American 
Lace Manufacturers Association relative to the revisions or addi- 
tions to this Code by accepting the proper pro rata share of the cost 
and responsibility of creating and administering it, either by becom- 
ing a member of said Association or by paying to it an amount 
equal to the dues from time to time provided to be paid by a mem- 
ber in like situation of American Lace Manufacturers Association. 

Employers in the Lace Manufacturing Industry shall comply 
with the requirements of the National Industrial Recovery Act as 
follows: "(1) That employees shall have the right to organize and 



67 

bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of 
employers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or protec- 
tion; (2) that no employee and no one seeking employment shall be 
required as a condition of employment to join any company union 
or to refrain from joining, organizing, or assisting a labor organi- 
zation of his own choosing; and (3) that employers shall com- 
ply with the maximum hours of labor, minimum rates of pay, and 
other conditions of employment approved or prescribed by the 
President." 

X 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of Clause 10 (b) of the National Industrial Eecovery Act, from time 
to time to cancel or modify any order, approval, license, rule or 
regulation, issued under Title I of said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

XI 

Such of the provisions of this Code as are not required to be in- 
cluded therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions to this Code or ad- 
ditional codes will be submitted for the approval of the President 
to prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Recovery Act con- 
sistent with the provisions hereof. 

By Hugo N. Schloss, 
Henry Giebel, 
H. S. Bromley, 
Walter H. Tarver. 
I, H. a. Philips, Chairman of the Code Committee of the Ameri- 
can Lace Manufacturers Association, do hereby certify that the fore- 
going is a true copy of the Code of Fair Competition for the Lace 
Manufacturing Industry submitted to the Administrator under the 
National Industrial Recovery Act on July 13, 1933, as amended by 
authority of the Board of Directors of the American Lace Manu- 
facturers Association. 

[seal] H. a. Philips. 

Chairman of the Code Committee. 
Dated August Y, 1933. 

Approved Code No. 6. 
Reuistrv No. 244-01. 

O 



Approved Code No. 7 

CODE OF FAIR COMPETITION 

FOR THE 

CORSET AND BRASSIERE INDUSTRY 

As Approved on August 14, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Corset and Brassiere Industry, and hearings 
having been held thereon and the Administrator having rendered his 
report containing an analysis of the said Code of Fair Competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions of 
Title I of said Act and that the requirements of clauses (1) and (2) 
of subjection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the Xational Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
hndings of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approA^ed. 

FRANKLIN D. ROOSEVELT. 

xVpproval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

August U, 1923. 

29905 296-129 34 (69) 



CODE OF FAIR COMPETITION 

FOR THE 

CORSET AND BRASSIERE INDUSTRY 

1. Purpose 

(a) The Corset and Brassiere Association of America, a national 
trade association representative of the industry throughout the 
United States, pursuant to the purpose of the Corset and Brassiere 
Industry to cooperate with the President of the United States in 
effectuating the policy declared in Title I of the National Industrial 
Recovery Act, does hereby recommend and submit for approval, pur- 
suant to Section 3 of said Title, the following Code of Fair Com- 
petition and plans for its Administration for all corset and brassiere 
manufacturers and distributors insofar as it pertains to this industry. 

This Code is set up for the purpose of increasing employment, 
establishing fair and adequate wages, eliminating wasteful practices 
destructive to the interests of the public, employees, and employers. 

This Code shall become effective the second Monday following its 
approval by the President. 

(b) Definition. — The term Corset and Brassiere Industry is used 
to cover persons, partnerships, and corporations, which manufacture 
and sell corsets, step-in-corsets, brassieres, bandeau-brassieres; cor- 
sets, girdle-corsets, or step-in-corsets attached to brassieres or 
bandeau-brassieres ; all similar body-supporting garments. 

(c) Administration. — For the purpose of administering this Code, 
the Corset and Brassiere Industry shall be divided into divisions as 
set forth below. Each such division may be independent and self- 
governing with respect to all conditions and problems relating ex- 
clusively to the said division. Proposals with respect to matters 
affecting more than one division may be initiated by any division, 
and shall be submitted for consideration to the Code Authority of the 
Corset and Brassiere Industry, hereinafter described, and its deter- 
mination shall be binding upon said division and all other divisions 
affected thereby. 

(d) "Person" as used herein includes any individual, firm, part- 
nership, or corporation in the industry. 

(e) Division A. — Persons who sell to retailers, jobbers, chain 
stores, catalog houses, and other distributors who resell. 

Division B. — Persons who manufacture stock garments, or pur- 
chase them for sale, and distribute them by the direct-to-consumer 
method of selling. 

Division C. — Persons who manufacture only made-to-measure 
(custom-made) garments, or purchase them for sale, which are dis- 
tributed only by the direct-to-consumer method of selling. 

(70) 



71 
2. Minimum Age of Employees 

Persons in the industry shall not employ anyone under sixteen 
years of age. 

3. Wages and Conditions of Employment 

(a) Except as hereinafter provided, on and after the effective 
date hereof, the minimum wage which shall be paid by persons in 
the Corset and Brassiere Industry to any of their employees shall 
be at the rate of $14.00 a week, except that cutters shall not be paid 
less than at the rate of $25.00 for a week of 40 hours. 

(b) No person shall reduce compensation for employment now in 
excess of the minimum wages hereby agreed to (notwithstanding that 
the hours of work of such employment may be hereby reduced), but 
shall increase the pay for such employment by an equitable readjust- 
ment of all pay schedules, whether for time-work or piece-work. 

(c) Learners or apprentices shall be paid a minimum of 271/2 
cents per hour, or at the rate of $11.00 a week, for the first six 
weeks, and thereafter the minimum wage provided under Rule 3 (a). 
If the operation they are learning has a piece-work rate and the 
amount earned at piece-rate is more than $11.00 a week, the learner 
or apprentice must be paid on a piece-rate basis. No person in this 
industry may knowingly employ as a learner or apprentice, an 
employee who has previously been employed in any plant in this 
industry on a similar operation as a learner or apprentice. 

(d) To assure employment to workers who are physically handi- 
capped and to avoid their becoming a burden to the state, such em- 
ployees are exempted from the provisions of Rule 3 (a), provided 
such employees shall not exceed in number 5 percent of the total 
workers employed by a person. 

(e) Persons in the Corset and Brassiere Industry shall comply 
with the requirements of the National Industrial Recovery Act as 
follows : 

"(1) That employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employ- 
ers of labor, or their agents, in the designation of such representa- 
tives or in self-organization or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection; 
(2) that no employee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and (3) that employers shall comply with the 
maximum hours of labor, minimum rates of pay, and other condi- 
tions of employment approved or prescribed by the President." 

4. HouBS OF Labor and Operation 

(a) The maximum hours of productive operation for any plant 
in this industry shall be forty hours per week, provided, however, 
that no plant shall operate in excess of five days in any week. 



72 

(b) The maximum hours of work for any employee, except execu- 
tives, executives' assistants, designers, office workers, shipping clerks, 
repair crews, ' watchmen, porters, salesmen, and truckmen, shall be 
forty hours per week. 

(c) Each person shall post in a conspicuous place in each work 
room in his factory Sections 3 and 4 of this Code. 

(d) The provisions for maximum hours set out in this article 
establish a maximum number of hours of labor per week for every 
employee covered, so that under no circumstances shall such an 
employee be employed or be permitted to work for one or more 
persons in the industry in the aggregate in excess of the prescribed 
number of hours in a single week. 

5. Sanitary Requirements 

(a) Since the products of this industry are customarily worn next 
to the body, all persons shall conduct a clean, sanitary factory. The 
minimum standard shall be in compliance with the standards set in 
that part of the factory law of the State of New York, which is 
applicable to plants in this industry. 

(b) No person shall employ workers except in his own plant or 
plants. No home work shall be allowed. 

(c) No person shall knowingly purchase materials to be used in 
his product which have not been made in a clean and sanitary 
factory, and it shall be stipulated on each purchase order that : " The 
material covered by this order must be manufactured in a clean and 
sanitary factory." 

(d) No person shall purchase garments for resale which are man- 
ufactured wholly or in part under conditions which do not conform 
with the provisions of this Code. 

(e) All persons shall insert on each invoice covering a shipment 
of their manufactured product, the following statement: "This mer- 
chandise was manufactured in compliance with the Code of Fair 
Competition of the Corset and Brassiere Industry." 

6. Modification 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
of Section 10 (b) of the National Industrial Recovery Act, from time 
to time to cancel or modify any order, approval, license, rule, or regu- 
lation, issued under Title I of said Act, and specifically to the right 
of the President to cancel or modify his approval of this Code or 
any conditions imposed by him upon his approval thereof. 

7. Monopoly 

Nothing in this Code shall be interpreted or applied in such a 
manner as to permit or promote monopolies, permit or encourage un- 
fair competition, eliminate, oppress, or discriminate against small 
enterprises. 



73 
8. Code Authority 

(a) A Code Authority for the Corset and Brassiere Industry shall 
consist of eight to ten members. Two members shall be appointed by 
the Administrator and not less than six nor more than eight shall be 
appointed by the President of the Corset and Brassiere Association 
of America subject to the approval of the Board of Directors. Mem- 
bers of the Authority may be removed by the Board of Directors of 
the Association with the approval of the Administrator. 

(b) The Code Authority shall elect such officers and shall assign 
to them such duties as it may consider advisable. The Code Author- 
ity may appoint subcommittees for the proper subdivision of its 
several functions and representative of such geographical sections of 
the country as it may designate. The Code Authority shall provide 
its own rules of procedure. 

(c) The Code Authority shall have full and complete authority 
for the administration and enforcement of this Code, subject to an 
api:)eal to the Administrator. 

(d) Any complaint concerning an alleged violation of the Code 
shall be submitted to the Code Authority in writing and by regis- 
tered mail. The complaint shall contain a complete statement of the 
facts and shall refer specifically to that part of the code which is 
alleged to have been violated. The Code Authority shall obtain such 
information as, in its opinion, shall be necessary to establish the 
lacts. If it shall appear to the Code Authority that there has been 
a violation of the Code, a statement of the charges shall be sent by 
registered mail to the person who is alleged to have committed the 
violation. The statement of charges shall fix the time and place for 
a hearing and at this hearing the person who is charged with the 
violation shall be given an opportunity of presenting his defense. 
If it is the decision of the Code Authority that a violation of the 
Code has been committed, it shall re])ort the violation to the Admin- 
istrator of the National Industrial Recovery Act ftr take such other 
action as the Administrator may approve to enforce the provisions 
of the Act. 

(e) The cost of the supervision needed to secure proper observance 
of this Code and any additions thereto, compilation of statistical 
data and such other activities as may be necessary shall be appor- 
tioned pro rata so far as practicable to all persons in the industry 
whether or not they are members of the Corset and Brassiere 
Association of America. 

(f) The Code Authority shall investigate the importation of com- 
petitive articles into the United States on such terms or under such 
conditions as to render ineffective or seriously endanger the mainte- 
nance of this Code and act as the agency for making complaint to the 
President on behalf of the Corset and Brassiere Industry. 

(g) All disputes between a dealer and a person as to quality or 
as to whether or not merchandise delivered is comparable with origi- 
nal sample should be referred to the Code Authority for arbitration 
and if so referred, the Code Authoritv will conduct the proceedings 
to settle the dispute under the rules of arbitration of the Corset and 
Brassiere Association of America. 



74 

(h) It shall undertake any duties which may be required by the 
Administrator to carry out the provisions of the National Industrial 
Recovery Act and recommend to the Administrator any further re- 
quirements which may be necessary. Such recommendations, when 
approved by the Administrator shall have all the force of the 
provisions of the Code as originally approved. 

(i) Any complaint, difference, controversy, or question of fair 
competition arising under or out of this Code, or relating to stand- 
ards as to maximum hours of labor, minimum rates of pay or other 
working conditions provided for therein, or concerning the interpre- 
tation or application of any provision thereof, shall be submitted to 
the Code Authority and their decision shall be final, subject to the 
approval of the Administrator. 

9. Fair Trade Practice Rules 

(a) Advertising. — 1. No person shall contribute more than fifty 
percent (50%) of the net cost of the space to the retailer for any 
retailer's advertisement covering the person's product. No person 
shall pay any of the cost of advertising on corsets, combinations, 
girdle-corsets, or step-in-corsets which are advertised for retail sale 
at less than two dollars ($2.00), or on brassieres or bandeaux- 
brassieres which are advertised for retail sale at less than one dollar 
($1.00), nor shall a person pay any part of the cost of advertising 
a retailer's own brand. 

2. No person shall pay any of the cost of an advertisement by a 
retailer which covers a special sale, i.e. merchandise advertised at a 
special price or at less than the price at which the merchandise is 
usuall}^ sold by the retailer. 

3. No person shall pay any part of the cost of an advertisement 
by a retailer which advertises the product of more than one person 
in this industry in the same advertisement. 

4. No person sh'&ll pay for any advertisement in any publication 
by a retailer which is issued less than twelve times a year. 

(b) Display forms. — No person shall furnish a display form with- 
out his own brand name appearing prominently thereon. Nor shall 
any person furnish a display form advertising a corset, combina- 
tion, girdle-corset, or step-in-corset retailing for less than two dollars 
($2.00), or a brassiere or bandeau retailing for less than one dollar 
($1.00). 

(c) Demonstrators. — 1. No person shall furnish to any retail store 
demonstrators for a period longer than one week nor oftener than 
twice each year, and persons shall not represent them to be em- 
ployees of the retail store. 

2. However, the foregoing paragraph is not applicable to a per- 
son who manufactures and/or sells surgical supports through retail 
distributors. 

(d) Delivery. — On all orders for five dollars ($5.00) or less there 
shall be a service charge of twenty -five cents (250) . 

(e) Returns. — 1. No merchandise may be accepted for return ex- 
cept for defects in manufacture, delay in delivery, or errors in 
shipment. 

Each invoice covering shipments will bear this imprint : 



75 

" The merchandise covered by this invoice left our factory in 
perfect condition. Please examine iimiiediately on receipt. All 
claims for damages and shortages must he made in writing within 
10 days from date of receipt of merchandise. No claims will be 
allowed at time of settlement. 

" These goods cannot he returned unless by our written consent. 
Our salesmen cannot authorize the return of any merchandise, nor 
have they authority to make any allowances." 

2. Worn Garments: (a) No credit will be allowed on any garment 
which has been worn for ten days or longer, (b) A garment which 
has been worn less than three months, and which in the opinion of 
the retailer has been damaged in wearing due to faulty material or 
workmanship may be returned for repair without charge, provided 
the garment has first been laundered, (c) No garment which has 
been altered may be returned if the damage was due to the 
alteration. 

3. Any dispute between a dealer and a person arising under the 
operation of this provision should be settled by amicable adjustment, 
or, if it is not possible to reach an agreement, the dispute shall be 
referred to the Arbitration Association for final settlement. 

(f) Dating^ discounts^ rehates. — 1. The maximum terms for re- 
tailers and catalog houses shall be eight percent (8%) ten (10) days 
e.o.m., or six percent (6%) fifty (50) days from date of invoice, net 
fifty-one (51) days. 

2. The maximum terms for jobbers and chain stores (chain stores 
selling up to one dollar ($1.00) retail) shall be three percent (3%) 
ten (10) days e.o.m., net eleven (11) clays e.o.m. 

3. Shipments macle on or after the twenty-fifth (25th) of any 
month on e.o.m. terms may be dated the first of the following month. 

4. No trade discounts, rebates, or extra dating may be allowed. 

5. No person or employee thereof may pay to any retailer or his 
employee any commission or premium money to secure preference for 
the purchase or sale of such person's merchandise. 

(g) Exchanges and consignments. — No merchandise may be ex- 
changed at any time, nor may it be consigned, nor may any method 
of selling be used which has the effect of selling on consignment or 
memorandum. 

(h) Cost -ftndi7ig. — To assure fair competition and to prevent 
the selling of merchandise below cost : 

1. The Code Authority will adopt a standard method of cost 
finding. It will be deemed a method of unfair competition to sell 
merchandise at less than the cost of production. No special con- 
cession in price or rebate of any description may be made on mer- 
chandise sold for special sale purposes. 

2. Each person shall keep in his own office complete specifications 
and cost figures on every number in his line. 

3. Any person may reduce the price of any number at any time 
provided the price reduction conforms to the intent of the Code 
of not selling below the cost of production. It is the meaning of 
this paragraph that the new price will be used for billing all cus- 
tomers for shipments made on or after the date when the new price 
went into effect and that it has not been made to circumvent the rules 
on discounts, dating, rebates, or consignments. 



76 

4. If a number cannot be sold at the regular price and must be 
closed out, a person may reduce his price provided he previously 
notifies the Code Authority of his intention to do so, accompanying 
this statement with the number of dozens which he has for sale. 
No number which has been reduced in price for the purpose of 
close-out may be put back into a line, nor may any additional quan- 
tity of the same number be manufactured after it has been reduced 
for close-out. 

(i) Wholesale prices. — To maintain established trade practice, and 
to limit the multiplication of numbers, but without any attempt at 
price fixing, each person being free to determine the value to be given 
at each price, the following shall be the wholesale prices, per dozen^ 
for sale to retailers (except chain stores selling up to one dollar 
($1.00) retail), and no intermediate prices may be used: 

$2.00 per Dozen $8.50 per Dozen $27.00 per Dozen 

2.25 10.50 30.00 

3.25 12.00 83.00 

4.00 15.00 36.00 

4.25 16.50 42.00 

4.50 18.00 48.00 

6.00 21.00 54.00 

7.00 22.50 60.00 

8.00 24.00 66.00 and up 

All merchandise shall be shipped in standard containers. No 
person may use more than one standard container for any number. 
If a customer orders merchandise to be put up in a special container, 
there shall be charged at least five cents (5^) additional for each 
container. This charge is to appear as a separate item on the invoice^ 

(j) Packing. — 1. Corsets and combinations selling for less than 
eight dollars ($8.00) a dozen wholesale shall be packed not less than 
twelve (12) of one size in a container. 

2. Corsets and combinations selling for eight dollars ($8.00) a 
dozen wholesale and less than twelve dollars ($12.00) shall be packed 
not less than six (6) of one size in a container. 

3. Corsets and combinations selling for twelve dollars ($12.00) a 
dozen wholesale may be packed not less than three (3) of one size 
in a container. 

4. Corsets and combinations selling for over twelve dollars 
($12.00) a dozen may be packed one in a container. 

5. Brassieres and bandeaux selling for less than four dollars 
($4.00) a dozen wholesale shall be packed not less than twelve (12) 
of one size in a container. 

6. Brassieres and bandeaux selling for four dollars ($4.00) a 
dozen wholesale and not more than seven dollars ($7.00) shall be 
packed six (6) of one size in a container. 

7. Brassieres and bandeaux selling for eight dollars ($8.00) a 
dozen wholesale and less than twelve dollars ($12.00) shall be packed 
not less than three (3) of one size in a container. 

8. Brassieres and bandeaux selling for twelve dollars ($12,00) and 
over a dozen wholesale may be packed one in a container. 

9. Corsets and combinations regularly packed in bulk may be 
packed in single containers if priced and billed at not less than fifty 
cents (50^) per dozen above the bulk packing price. 



f 



77 

10. Corsets and combinations regularly packed one in a container 
may be packed in bulk in three (3) ^six (6) , or twelve (12) of a size in 
a container, at a reduction from the regular list price for single pack- 
ing of not more than twenty-five cents (25^) per dozen if packed 
three (3) in a container, or fifty cents (50^) per dozen if packed 
six (6) or twelve (12) in a container. No garment packed in bulk 
may be packed in other quantities than three (3) of a size or 
multiples thereof. 

11. Nothing in Provision (j) is applicable to any shipments made 
to jobbers, catalog houses, or chain stores selling up to one dollar 
($1.00) retail. 

(k) Piracy. — The Code Authority shall set up a bureau for the 
registration of original and unique designs and it shall adopt such 
regulations as the Administrator may approve for the purpose of 
eliminating style piracy. 

DIVISIONS B AND C 

Only the persons classified as members of Divisions B or C as 
defined herein, are subject to provisions (1) to (s), inclusive. 

(1) 1. Persons shall not entice awaj^ nor endeavor to entice away 
any sales employee, representative, agent, or exclusive distributor of 
any competitor with the purpose or effect of unduly hampering or 
injuring such competitor, or with the purpose of benefiting by the 
training and experience of such sales employees, representatives^ 
agents, or exclusive distributors, and to this end each person shall 
include in every contract of employment, agency, or distribution 
(with the exception of the contracts with salespeople exclusively 
contacting the consumer) a clause forbidding all such activities. 

2. Should any person possess reasonable proof that infraction of 
this provision has occurred, he shall notify and submit such proof 
to the person whose employee, representative, agent, or exclusive dis- 
tributor has committed said infraction, and a copy of such com- 
plaint and supporting evidence shall be filed with the Code Author- 
ity. Should thereafter the Code Authority decide upon receipt of a 
complaint and evidence, and after prescribed hearings, that a second 
infraction of this provision has been committed by the same em- 
ployee, agent, representative, or exclusive distributor of a person, 
such person will, upon receipt of notice from the Code Authority 
and subject to a review by the Administrator, terminate the employ- 
ment and/or contract and/or all relationship with the offending^ 
individual. 

3. Nothing in this provision shall be deemed to hinder or in any 
way obstruct the right on the part of any sales employee, agent, 
representative, or exclusive distributor to seek and accept on his or 
her own initiative, employment, or association with a competitor. 

(m) Persons shall refrain at all times and shall order their em- 
ployees, agents, representatives, and exclusive distributors to agree 
in writing to refrain from issuing or making knowingly false state- 
ments in regard to the dependability, financial standing, product, or 
repute of any competitor. 

(n) No person shall represent by design, picture, or statement that 
such person occupies or utilizes a factory or business space other 
than is actually occupied or utilized, or represent in advertisements 



78 

or otherwise that such person is a manufacturer or owner or oper- 
ator of a mill or factory when in fact such person does not own- 
operate, or possess such mill or factory. 

(o) In advertising for dealers or sales people, no person shall 
knowingly make claims of earning power which are exaggerated 
and misleading, nor shall any person in such advertisements, will- 
fully misrepresent the source of profit, income, commissions, earn- 
ings, or compensation the dealer or sales people shall receive. When 
a person directly or indirectly holds out as an inducement to dealers 
or sales people or prospective dealers or salespeople a refund of de- 
posit for samples or sales outfits, either upon return of such outfits 
or upon completion of a predetermined volume of business, said 
refund shall be promptly made when such conditions are met. 

(p) Persons will provide to all their exclusive dealers and sales 
people, and will require them to use in every transaction a receipt 
form which shall clearly indicate the name of the product and the 
person, and which shall provide a space for the full name and ad- 
dress of the dealers or sales people, and a clear and concise statement 
of the terms of the sale. 

(q) Persons shall refrain from and shall order their employees, 
agents, representatives, and exclusive distributors to agree in writ- 
ing to refrain from inducing, or attempting to induce, the breach of 
existing contracts of purchase, or the countermanding of existing 
orders between competitors and the consumer, by any false or decep- 
tive means whatsoever, or interfering with the performance or ful- 
fillment of any such contracts, or orders, by any such means. 

(r) Persons shall furnish to sales employees, other employees, 
agents, representatives, or exclusive distributors only information ancl 
instructions that correspond with facts and are not deceptive or mis- 
leading in any respect, and shall expressly inform them at the time 
of their employment or association with the person (or in the case 
of present associates shall immediately so inform them) of all the 
provisions of this Code, or subsequent additions thereto, which regu- 
late the activity and business conduct of such sales employees, other 
employees, agents, representatives, or exclusive distributors, and 
that any violation of such provisions will result in immediate dis- 
missal or termination of relationship, and shall further expressly in- 
form them that they have no authority to make statements or prom- 
ises of any kind inconsistent with the terms, conditions, and pro- 
visions of the text books, literature, and advertising materials pub- 
lished by the persons. 

(s) All provisions of the general Code are applicable to members 
of Divisions B and C except that the following sections shall not 
applv to them: Section 9 (a), Section 9 (b) ; Section 9 (c) ; Section 
9 (d); Section 9 (e) ; Section 9 (f ) ; Section 9 (g) ; Section 9(h) 
2 ancl 3 only; Section 9 (i) ; Section 9 (j). 

(t) Label provision. — All garments manufactured or distributed 
shall bear an NRA label, which shall remain attached to such gar- 
ments. Such labels shall bear a registration number specially as- 
signed to each manufacturer in the Industry. The privilege of 
using such labels shall be granted and such labels shall be issued to 
any person from time to time engaged in the Industry upon applica- 
tion therefor to the Code Authority, accompanied by a statement of 



79 

compliance with the provisions of this Code. The privilege of using^ 
such labels and the issuance thereof may be withdrawn and cease or 
may be suspended in respect to any such persons whose operations, 
after appropriate hearing by the Corset and Brassiere Code Au- 
thority and review by the Administrator, shall be found to be in 
substantial violation of this Code. Persons shall be entitled to 
obtain and use such labels if they comply with the provisions of this 
Code. 

The Corset and Brassiere Code Authority may establish appropri- 
ate machinery for the issuance of such labels in accordance with the 
foregoing provisions. 

(u) Partial invalidity. — If any provision of this Code is declared 
invalid or unenforceable, the remaining provisions thereof shall 
nevertheless continue in full force and effect in the same manner as 
if they had been separately presented for approval, and approved 
by the President. 

Approved Code No. 7. 
Registry No. 220/1/02. 

O 



Approved Code No. 8 

CODE OF FAIR COMPETITION 

FOR THE 

LEGITIMATE FULL LENGTH DRAMATIC AND 
MUSICAL THEATRICAL INDUSTRY 

As Approved on August 16, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order / 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16j 1933, for my approval of a Code 
of Fair Competition for the Legitimate Full Length Dramatic and 
Musical Theatrical Industry, and hearings having been held thereon 
and the Administrator having rendered his report containing an 
analysis of the said Code of Fair Competition together with his 
recommendations and findings with respect thereto, and the Admin- 
istrator having found that the said Code of Fair Competition com- 
plies in all respects with the pertinent provisions of Title I of gaid 
Act and that the requirements of clauses (1) and (2) of subsection 
(a) of Section 3 of the said Act have been met: - / / 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, i 

■nm ^e: August 16, 1933. 
'■' I •" (81) 



29848 ^296-130 



INTRODUCTION 



August 14, 1933. 



To the President : 

This is a report of the Hearing on the Code of Fair Competition 
for the Legitimate Full Length Dramatic and Musical Theatrical 
Industry in the United States, conducted in the Caucus Room of 
the Old House Office Building, in Washington, D.C., on August 
10th, 1933, in accordance with the provisions of the National Indus- 
trial Recovery Act. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The Legitimate Full Length Dramatic and Musical Theatrical 
Industry is declared to embrace the full length theatrical per- 
formances of dramatic and musical plays, including stock company 
productions, all as differentiated from grand opera, vaudeville, 
presentation, " rep " show, " tab " show, tent show, wagon show, 
Chautauqua, show-boat, burlesque or motion or sound picture per- 
formance. 

The number of persons employed in the industry constantly varies 
in direct proportion with the number of legitimate theatrical pro- 
ductiong publicly presented. 

THE CODE 

The Code of Fair Competition as revised and presented by this 
industry has attempted to promote the production of legitimate 
dramatic and musical productions, and its provisions are designed 
to that end. 

For the first time in the history of the legitimate theatre minimum 
wages and maximum number of hours have been fixed by agree- 
ment for actors, press repre,sentatives, company managers, house 
treasurers, and other labor. Wages have not been reduced, and, in- 
deed, have been raised. Hours generally have been reduced. 

The trade practices declared unfair have been especially designed 
to promote the production of dramatic and musical plays and to 
attract the investment of capital into this industry. 

Of the employer groups approving the Code it is stated that the 
National Association of the Legitimate Theatre embraces more than 
95 percent of the employers managing or owning legitimate theatres, 
or managing or producing full-length dramatic or musical plays, 
and that the National Dramatic Stock Association embraces more 
than 60 percent of the persons engaged in the management or pro- 
duction of full-length dramatic or musical stock plays. 

(82) 



83 

I find that : 

(a) The Code as revised complies in all respects with the pertinent 
provisions of Title I of the Act including, without limitation^, sub- 
section (a) of Section 7 and subsection (b) of Section 10 thereof; 
and that 

(b) The National Association of the Legitimate Theatre and the 
National Dramatic Stock Association impose no inequitable restric- 
tions upon admission to membership therein and are truly repre- 
sentative of the legitimate full-length dramatic and musical theatri- 
cal industry; and that 

(c) The Code is not designed to eliminate or oppress small enter- 
prises and will not operate to discriminate against them, and will 
tend to effectuate the policy of Title I of the National Industrial 
Recovery Act. 

Accordingly, I adopt the report of the Deputy Administrator and 
I hereby recommend the approval of the Code of Fair Competition 
for the Legitimate Full-Length Dramatic and Musical Theatrical 
Industry. 
Respectfully submitted. 

Hugh S. Johnson, 

Adrmnistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

LEGITIMATE FULL LENGTH DRAMATIC AND MUSICAL 
THEATRICAL INDUSTRY 



Preamble 

To effectuate the policy of Title I of the National Industrial 
Recovery Act to remove obstructions to the free flow of interstate 
and foreign commerce and to promote cooperative action to reduce 
and relieve unemployment, improve standards of labor, eliminate 
unfair competitive practices, avoid restriction of production, in- 
crease purchasing power, and rehabilitate industry, particularly as 
it pertains to the dramatic and musical comedy theatre known as 
the legitimate theatre with the expressed purpose of revitalizing it 
as a national institution so that the road may be restored and plays 
may once more be given in every part of the country, the following 
is adopted as a Code of Fair Competition for the Dramatic and 
Musical Comedy Theatre known as the Legitimate Theatre. 

Article I — Definitions 

1. The term " effective date " as used herein is defined to be the 
tenth day following the approval of this Code by the President. 

2. The term " legitimate " is what is generally known as the legiti- 
mate full-length theatrical performances of dramatic and musical 
plays as differentiated from grand opera, vaudeville, presentation, 
" rep " show, " tab " show, tent show, wagon show, Chautauqua, 
show-boat, burlesque, or motion or sound picture performances. 

3. The term " stock " is defined as legitimate theatrical perform- 
ances rendered by a resident company of actors appearing in legiti- 
mate theatrical productions of dramatic or musical plays theretofore 
and previously produced, and which productions so given are 
changed at stated or frequent intervals. 

4. The term " persons " as used herein shall include, without limi- 
tation, natural persons, partnerships, associations, and corporations. 

5. The term " employer " as used herein shall include every person 
engaged in the management or ownership of theatres presenting, 
or the management or production of, full-length dramatic or musical 
plays. 

6. The term " employee " as used herein shall include every person 
employed by any employer (as above defined). 

Article II — ^Administration 

1. With the approval of the President there shall be constituted a 
National Legitimate Theatre Committee to consist of one duly au- 
thorized representative each from Actors' Equity Association, Chorus 

(84) 



85 

Equity Association, the International Alliance of Theatrical Stage 
Employees and Moving Picture Machine Operators of U.S. and 
Canada, American Federation of Musicians of the U.S. and Canada, 
United Scenic Artists of America, one duly authorized representative 
from the group of employees not hereinbefore embraced, one repre- 
sentative from The Dramatists' Guild of the Authors' League of 
America, three duly authorized representatives from the National 
Association of The Legitimate Theatre, Inc., two duly authorized 
representatives from the National Dramatic Stock Association 
(which shall have three representatives as members whenever ques- 
tions relating solely to stock productions are considered), and not 
more than three representatives who may be appointed by the 
National Recovery Administrator. 

2. With the approval of the President such committee shall be 
empowered to assist the National Recovery Administrator in ad- 
ministering the provisions of the Act as set forth in this Code; 
may initiate and shall consider such recommendations and regula- 
tions and interpretations including trade practices as may come 
before it and in such case shall in deliberations held without pub- 
licity and recorded in writing, submit to the National Recovery 
Administrator its advice setting forth in each instance whether said 
committee unanimously approves or unanimously rejects or is dis- 
agreed upon the proposal, and in such events the National Recovery 
Administrator shall determine. 

3. Such committee shall also supervise the application of this Code 
and shall notify any and all persons subject to the jurisdiction of 
this Code of its provisions and regulations and shall designate such 
agents and delegate such authority as may be necessary to effectuate 
such purposes. 

4. As and when any question shall be deliberated upon by the 
National Legitimate Theatre Committee with respect to the distribu- 
tion of theatre tickets, two duly authorized representatives from the 
National Theatre Ticket Distributors, Inc., shall thereupon and only 
with reference to such questions become members of said National 
Legitimate Theatre Committee. 

Article III — General Labor Provisions 

1. The employers agree that employees of employers subject to 
the jurisdiction of this Code shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of em- 
ployers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or protec- 
tion; no employee of employers subject to the jurisdiction of this 
Code, and no one seeking employment from such employers, shall 
be required as a condition of employment to join any company 
union or to refrain from joining, organizing, or assisting a labor 
organization of his own choosing; employers subject to the jurisdic- 
tion of this code shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President. . .,.. i,. 



86 

2. To effectuate section 7 of the Industrial Recovery Act and in 
the interest of an American standard of living, the employers declare 
themselves in favor of fair scales of wages, proper hours and work- 
ing conditions for all of their employees. 

3. There are a number of rules and regulations presently existing 
m respective or collective agreements between the employers and 
their organized employees. The employers and employees pledge 
themselves to work for a readjustment of any and all conditions or 
rules or regulations which prove either to result in prohibitive pro- 
duction costs or in any loss of employment among all the employees 
of the employers. 

Article IV — Actors 

1. For actors with more than two years' theatrical experience, the 
employers agree to pay a minimum wage as follows : Where the box- 
ofl5ce price of the theatrical attraction is $4.50 or more top price, 
the minimum wage shall be $50 per week; where the top box-office 
price of the theatrical attraction is $4.00 or more but les,s than $4.50, 
the minimum wage shall be $45 per week; where the top box-office 
price of the theatrical attraction is more than $3.00 but less than 
$4.00, the minimum wage shall be $42.50 per week; where the top 
box-office price of the theatrical attraction is $3.00 or under, the 
minimum wage shall be $40 per week. 

2. For actors with less than two years' theatrical experience the 
employers agree to pay a minimum wage of $25 per week. 

3. For the chorus there shall be a minimum wage of $30 per week, 
the employers subscribing to the wages presently fixed by the Chorus 
Equity Association. 

4. The employers agree that at the end of two weeks of rehearsals, 
they will pay a full week's salary to all actors receiving $100 a week 
or less ; that for the first and second weeks of production half salaries 
shall be paid. This provision is designed to aid and assist actors 
who may require funds during the rehearsal periods. The prepay- 
ment of such actors is in the nature of an advance payment of salary. 

5. There presently exist abuses with respect to the hours of labor 
of actors during the rehearsal period. The employers recognize that 
such abuses exist and hereby pledge themselves to the Actors' Equity 
Association and the Chorus Equity Association and through the 
National Legitimate Theatre Committee to adopt and put into force 
subject to the approval of the National Recovery Administrator with- 
in the shortest possible time after the effective date of this Code, 
regulations of such hours of labor during the rehearsal period which 
will be fair, just, and humane, conforming to the spirit of the Na- 
tional Industrial Recovery Act, and for the violation of which rules 
and regulations penalities shall be imposed. 

6. The employers agree to a week of not more than 40 hours for 
actor employees. By reason of the peculiar nature of this industry 
this provision shall not be binding during the rehearsal periods, such 
periods having been above provided for. 

7. Upon the payment of the week's salary herein provided for at 
the end of the two weeks of rehearsals, any bond or monies deposited 
by the employer shall be reduced by the amount of payment actually 
made against such salaries as described. 



87 

Article V — Musicians, Theatrical Stage Employees and Moving 
Picture Machine Operators 

For those employees associated with organizations of or perform- 
ing the duties of theatrical stage employees, moving picture machine 
operators or musicians, there shall be a minimum wage of thirty 
dollars ($30.00) per week for eight performances per week and pro 
rata per performance or for rehearsals, and a forty-hour week. 
However, where the prevailing wage scale as of July 1st, 1933, en- 
forced by the American Federation of Musicians or any of its locals 
with respect to musicians and enforced by the International Alliance 
of Theatrical Stage Employees and Moving Picture Machine Opera- 
tors or any of its locals with respect to theatrical stage employees or 
motion picture machine operators, whether weekly or daily, and 
the division of hours of labor, whether weekly or daily, are at a rate 
exceeding the minimum w^eekly wage scale herein provided for or 
less than the maximum number of hours per week herein provided 
for, such prevailing scales and hours of labor throughout the coun- 
try shall be deemed to be and hereby are declared to be the minimum 
scale of wages and maximum number of hours with respect to such 
employees under this section of the Code. 

Article VI — Scenic Artists 

1. Since the relations of the employers are with firms of Scenic 
Artists having contractual relations with organizations of such la- 
bor, no minimum wage or maximum number of hours of labor with 
respect to such labor is fixed herein. 

Article VII — Transfer Men 

1. The situation above set forth with respect to the scenic artists 
prevails also with respect to transfer men. The employers declare 
in favor of revision of the agreements of the Theatrical Truckmen's 
Union and the Allied Theatrical Transfer Association and pledge 
themselves to work for a readjustment of their present transfer costs. 

Article VIII — Theatrical Wardrobe Attendants 

1. For those employees associated with organizations of or per- 
forming the duties of theatrical wardrobe attendants, there shall be 
a minimum wage of $30 per week for a 40-hour week. However, 
where the present prevailing wage scale enforced by the Theatrical 
Wardrobe Attendants' Union is a rate exceeding the minimum 
weekly wage scale herein provided for, such prevailing scale 
throughout the country shall be deemed to be and hereby is declared 
to be the minimum scale of wages with respect to such employees 
under this Code. 

Article IX — Company Managers and House Treasurers 

1. There shall be a minimum M^age of $40 per week for a 40-hour 
week for company managers and house treasurers. 

* 

I 



88 
Article X — Press Representatives 

1. There shall be a minimum wage of $50 per week for press repre- 
sentatives stationed in any particular locality and $75 per week for 
press representatives who are traveling. The employers agree that 
they will give one week's notice of dismissal and agree that the 
employment of any press representative will be for not less than one 
week. Due to the varied nature of the work of the press representa- 
tives, it is not practical to fix a maximum number of hours per week. 

Article XI — Other Employees 

1. For all other employees of the employers such as ushers, ticket 
takers, scrubwomen, theatre attendants, etc., there shall be a mini- 
mum wage of 30 cents per hour for a 35-hour week. There shall be a 
minimum wage of 30 cents per hour for porters for a 40-hour week. 

2. Electrical workers, engineers, firemen, oilers, or other skilled 
mechanics who are directly employed by the employers as defined in 
this Code, shall receive a minimum wage at the rate of thirty dollars 
($30) per week for a 40-hour week whether such wage shall be com- 
puted nourlj^ daily, or weekly. If the prevailing wage scale and 
maximum number of hours per week as of July 1, 1933, as fixed in any 
contractual agreement between the employers and associations of any 
of such employees, however, shall be at a rate exceeding the minimum 
wage scale herein provided for or less than the number of hours per 
week herein provided for with respect to any of such employees, 
such scales and hours of labor in the localities where same were 
enforced shall be deemed to be and hereby are declared to be the 
minimum scale of wages and the maximum number of hours with 
respect to such emplovees in such localities under this section of the 
Code. 

Article XII — Stock Productions 

1. Anything herein contained to the contrary notwithstanding, 
employees of employers engaged in presenting resident stock com- 
pany productions shall receive minimum wages and work not longer 
than the maximum hours as hereafter in this article provided : 

A. Actors. — (a) In cities of more than 500,000 population, not 
less than six actors regularly employed in the stock company shall 
receive a minimum wage of $40 per week; other actors shall receive a 
minimum of $25 per week; jobbers shall receive a minimum of $15 
per week; local jobbers shall be employed pursuant to the rules of the 
Actors' Equity Association. 

(b) In cities of less than 500,000 population or in neighborhood or 
suburban localities in cities of more than 500,000 population, not less 
than four actors regularly employed in the stock company shall re- 
ceive a minimum wage of $40 per week; all other actors, excluding 
pbbers, shall receive a minimum of $25 per week; jobbers and local 
jobbers shall be employed pursuant to the rules of the Actors' Equity 
Association and shall be paid a minimum wage of not less than $14.50 
per week in any city of between 250,000 and 500,000 population, of 
not less than $14.00 per week in any city of between 2,500 and 250,000 



89 

population, and of not less than $12.00 per week in towns of less than 
2,500 population. 

(c) The maximum number of hours for actors in stock companies 
shall be 40 hours per week (rehearsals periods by reason of the 
peculiar nature of stock company productions not being included). 

(d) For the chorus there shall be a 40-hour week with a minimum 
wage scale : In productions presented during the period from May 
30th to Labor Day in any year, $25 per week where the highest ad- 
mission price is $1 or less, and $30 per week where the highest ad- 
mission price is more than $1 ; and in productions presented during 
any other period in any year. $30 per week where the highest admis- 
sion price IS $1 or less, and $35 per week where the highest admission 
price is more than $1. 

B. Stock company managers shall receive a minimum wage of $25 
per week for a 40-hour week. 

C. Stock treasurers shall receive a minimum of $20 per week for 
a 40-hour week. 

D. Press representatives shall receive a minimum wage of $25 per 
week for rendition of exclusive services to the employer. By reason 
of the varied nature of the work of such employees it is not practical 
to fix a maximum number of hours per week. 

E. The provisions of Article XI, section 1, of this Code are hereby 
incorporated herein. 

F. The provisions of Article V and Article XI, section 2, of this 
Code are hereby incorporated herein in all respects, saving to the 
stock company employers however the advantages of any special pro- 
visions in their favor enforced by or provided for in collective 
bargaining agreements with associations of such employees. 

2. The provisions of Article XIV of this Code shall not apply to 
employers presenting stock company attractions. 

Article XIII — Child Labor 

1. Employers shall not employ any employees under the age of 
sixteen years. However, with the consent of the proper governmental 
authority the employers may employ an actor under the age of 
sixteen years to fill a role especially written for a child actor or to 
fill a part requiring the services of a child actor. 

Article XIV — Dramatic 

1. The Dramatists' Guild of the Authors' League of America, 
Inc., as a means of ascertaining whether, in the Guild's opinion, cer- 
tain provisions will operate to encourage theatrical production and 
thereby cause employment of actors and other employees of the le- 
gitimate theatre, as a temporary expedient voluntarily agree to pass 
an amendment to the minimum Basic Agreement in substance as 
follows : 

2. Upon the execution of any production contract executed between 
the effective date of this amendment and September 15, 1934, the 
dramatist shall be paid a sum of not less than $500, not returnable 
under any circumstances, which sum shall be an advance against 
royalties if the play runs three consecutive weeks in New York City 



90 

and which shall not be deducted from royalties if the play does not 
run the said three weeks in New York City. If the manager closes 
the play at the end of the first week's production, the manager shall 
pay to the dramatist his royalties in full to the date of closing and 
he shall thereupon be entitled to share to the extent of 15% in all 
monies received by the dramatist when the dramatist sells or other- 
wise disposes of the motion-picture rights in such play ; if the man- 
ager closes the play at the end of two full consecutive weeks' produc- 
tion, he shall pay to the dramatist his royalties in full to the date 
of closing and thereupon his share of the said proceeds from the sale 
or other disposition of the motion-picture rights shall be 25%. If 
the play fails to run three weeks the control of the sale of the motion- 
picture rights shall be with the dramatist but the sale shall be made 
through the motion-picture Arbiter in order to protect the manager. 
This amendment shall become operative upon the effective date of 
this Code, provided the managers signatory to the Minimum Basic 
Agreement shall have ratified such amendment at a meeting. 

Article XV — Participation in Code 

1. Any existing employers as herein defined, or employer who shall 
become such hereafter, whether members of any association or not, 
may participate in the Code and any subsequent revisions, additions, 
or amendments thereof, by indicating their intention of fully sub- 
scribing to the provisions of the Code, and by assuming the responsi- 
bilities of such participation. 

Article XVI — Trade Practices 

1. The employers agree that it shall be an unfair practice to vio- 
late the terms of any booking agreement. This declaration is re- 
quired by reason of the abuses which have taken place in connection 
with cancellation of booking of road attractions in direct violation 
of the terms and provisions of such road booking attractions. 

2. The employers agree that it shall be an unfair practice for any 
employer to aid, abet, or assist in the voluntary release or dismissal 
of any actor for the purpose of permitting such actor to leave the 
cast of an attraction then playing in order to accept employment in 
motion pictures. This declaration is required in order to preserve 
and protect the rights of all concerned in the presentation of a legi- 
timate production in such instances where one of the players to enter 
motion pictures with the aid and assistance of the employer leaves 
the attraction, weakening the same and necessitating the closing of 
such attraction and the resultant unemployment of other persons 
associated in the presentation of such attraction. 

3. The employers agree that it shall be an unfair practice for any 
employer to aid, abet, or assist in the voluntary release or dismissal 
of any author, dramatist, or actor employed in rendering his exclu- 
sive services in connection with the production of a motion picture 
for the purpose of securing the services of such author, dramatist, or 
actor. 

4. The employers pledge themselves not to distribute any of their 
tickets to any cut-rate ticket agency in the event any such ticket 



91 

agency shall discriminate in the handling or distribution of such 
tickets in turn to the public. By discrimination is meant the favor- 
ing of certain attractions against others. 

5. The employers pledge themselves to eliminate the abuses now 
existing with respect to the distribution of legitimate theatre tickets 
to the public. The employers agree that they will not distribute 
their tickets to the public directly at prices in excess of the theatre 
box-office price fixed for such tickets. The employers agree that they 
will not distribute their tickets to the public through agencies except 

(a) To recognized bona fide agencies regularly and customarily 
engaged in the offering of theatre tickets to the public, and 

(b) To such agencies which will not charge the public for such 
tickets any sums in excess of their box-office price plus a proper 
agency fee satisfactory to the National Legitimate Theatre Com- 
mittee. 

In the enforcement of the foregoing provisions the employers shall 
treat all agencies equally. 

6. The employers pledge themselves to retain in the box office for 
sale direct to the public a fair percentage of seats in all parts of the 
house, this percentage to be determined by the National Legitimate 
Theatre Committee. 

7. It shall be an unfair practice for employers to aid or assist in 
the indiscriminate distribution of free passes for attractions. 

8. It shall be an unfair practice for employers to aid or assist in 
the " throw-away " ticket system under which admission to the 
theatre may be secured by presentation of a ticket slip good for a 
number of tickets upon payment of a small charge. This provision 
shall not apply unless three or more productions are being presented 
in direct competition with each other (road shows and try-out 
attractions not being productions within the meaning of this section 8 
hereof). 

Article XVII — Relation or the Theatre to the Public 

1. The relation of the theatre to the public should be grounded on 
honesty and a policy of fair dealing. The employers, therefore, 
reiterate the need of honest and nondiscriminatory sale and distri- 
bution of tickets. 

2. The employers declare themselves in favor of a sincere and 
honest advertising policy. 

3. The employers agree not to distort reviews by deletion or other- 
wise in their advertising, and give a false impression of what a 
critic has said. 

4. The employers pledge themselves to adhere to the advertised 
time for curtain raising. 

Article XVIII — Declaration or Policy 

1. To eliminate substandard and sweatshop conditions in stage 
productions, and to assure the patrons that the productions have 
been given under proper standards in accordance with the National 
Industrial Recovery Act, all such productions shall be advertised 
under an N.R.A. label. 



92 

2. The employers pledge themselves to cooperate to establish a 
uniform standard form of contract with booking agencies for all 
legitimate attractions. 

3. The employers agree that in all cooperative productions the 
minimum wages for all employees shall be those as prescribed in 
this Code. 

4. The employers agree that insofar as they can control the 
distribution of the same, the motion picture of a currently playing 
legitimate attraction should not be permitted to be released until 
such attraction has had the fullest opportunity to complete its run 
and enjoy road showing. 

5. The employers agree to the employment of actors, except where 
they themselves employ such actors directly, through agencies 
recognized and acceptable to the Actors' Equity Association. 

Article XIX — Special Try-Out Attractions 

1. Special try-out attractions (known as " summer season com- 
panies " or " winter season companies " as the case may be) are 
excepted from the operation of Articles IV, V, VIII, IX, X, XI. 
and XII of this Code. The National Legitimate Theatre Commit- 
tee shall consider and recommend provisions embracing the subject 
matter of such articles of this Code for such production. 

Article XX — Violations 

1. Violations by any persons subject to the publications of this 
Code, of any provisions of this Code, or of any approved rule issued 
thereunder, or of any agreement entered into by him with the afore- 
mentioned National Legitimate Theatre Committee to observe and 
conform to this Code and said rules, is an unfair method of com- 
petition and the offenders shall be subject to the penalties imposed by 
the National Industrial Recovery Act. 

Article XXI — Amendments 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
of Clause 10 (b) of the National Industrial Recovery Act, from time 
to time to cancel or modify any order, approval, license, rule or 
regulation, issued under Title I of said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code, 
or any conditions imposed by him upon his approval thereof. 

Such of the provisions of this Code as are not required to be in- 
cluded therein by the Natioi^al Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated that 
from time to time supplementary provisions to this Code, or addi- 
tional Codes, will be submitted for approval of the President to pre- 
vent unfair competition and other unfair destructive competitive 
practices and to effectuate the other purposes and policies of Title I 
of the National Industrial Recovery Act consistent with the pro- 
visions hereof. 



93 
Article XXII — Saving Provision 

1. If any court of competent jurisdiction shall finally determine 
that any Article or section of any Article in this Code shall be 
invalid, all other Articles and sections of this Code shall nevertheless 
remain and continue in full force and effect in the same manner as 
though they had been separately presented for approval and ap- 
proved by the President. 



Approved Code No. 8. 
Registry No. 1748-04. 



o 



Approved Code No. 9 
CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 

As Approved on August 19, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 



An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Lumber and Timber Products Industries, 
and hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said Code of Fair 
Competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of title I of said act and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of the said act have been 
met: 

NOW THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code of Fair 
Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Adimnistrator. 

The White House, 

■ ' August 19, 1933. 

29222° 29&-57 34 (95) 



96 



August 12, 1933. 
To : The Administrator, N.R.A. 
From : Dudley Gates, Assistant Administrator. 

I. Preliminary Stdtement. — I have the honor to submit herewith my 
report on the Code of Fair Competition of the Lumber and Timber 
Products Industries, including the hearing thereon. 

II. The Code and the Hearing (Uncontro verted matter omitted). — 
The Code as submitted by the industries is summarized as follows, 
with suggested changes in the Code discussed in later sections of this 
report. 

A statement accompanying the Code declares that it was submitted 
in accordance with a resolution dated July 1, 1933, of the Board of 
Directors of the National Lumber Manufacturers' Association, repre- 
senting more than 70 percent of the output of lumber and timber 
products throughout the United States, concurred in by 45 trade 
associations composed of manufacturers of lumber and timber prod- 
ucts and by the single wholesale lumber association and the single 
retail lumber association of national scope. 

Article I — Purpose 

. The declared purpose of the adherents to the Code is to reduce 
unemployment in the industries reported, improve standards of 
labor, maintain a reasonable balance between production and con- 
sumption, restore prices to levels which will avoid further depletion 
and destruction of capital assets, and to conserve forest resources and 
bring about sustained yield from the forests. 

Article II — Definitions 

Paragraph (a) Defines lumber and timber products. 

Paragr^aph (b) Defines person. 

Paragraph (c) Defines Divisions and Subdivisions. 

Article III — Administration 

The applicant organizations propose to establish a nonprofit cor- 
poration named " Lumber Code Authority " to assist the National 
Recovery Administration in administering the provisions of the Act as 
set forth in the Code. Provision is to be made for membership or 
representation in the Lumber Code Authority of representatives of 
the National Recovery Administration and of the principal divisions 
of the industries. Any producer is eligible to full participation in the 
appropriate Division or Subdivision on terms of full equality with 
other participants. Such Authority is intended to have broad admin- 
istrative powers in giving effect to the provisions of the Act, and of 



97 

the Code, including enforcement of Rules of Fair Trade Practice. 
The Authority is also empowered to designate appropriate agencies 
for applying the Code in each Division and Subdivision of the lumber 
and timber products industries. The Authority is solely vested with 
the power and duty of enforcing the Code. 

Article IV — Code Reports and Fees 

The Authority undertakes to obtain and compile adequate informa- 
tion as to the extent of observance of the Code and the results obtained 
under its operation, with power of inspection of pertinent records by 
authorized agents. Adherents to the Code are to share, in proportion 
to production, the necessary expenses of maintaining the Authority 
and its authorized activities. 

Article V — Labor Provisions 

Paragraph (a) Assures employees the right to organize and bargain 
collectively through representatives of their own choosing. 

Paragraph (b) Stipulates that membership or nonmembership in a 
particular type of labor organization shall not be a requirement of 
any employee or of any person seeking employment. 

Paragraph (c) Provides that each employer shall comply with 
standards of wages and hours and other conditions of employment 
approved or prescribed by the President. 

Paragraph (d) Prohibits employment of any individual under 18 
years of age, with the exception of boys 16 years of age or over in 
nonhazardous occupations during school vacations, or if there are 
no wage earners 18 years of age or more in the families of such boys. 

Article VI — Hours or Labor 

Paragraph (a^) Lays down general provisions for permitting certain 
persons under defined conditions to be employed for longer maximum 
hours per week than those prescribed in Paragraph (b). In general. 
Paragraph (b) proposes maximum hours of employment of 48 hours 
per week for logging in all producing regions and 48 hours per week 
for sawmills and other operations, except that a 40-hour week is 
proposed for sawmills in the northwest and in certain other minor 
cases. 

Article VII — Minimum Wages 

Except for a few special situations, a schedule of minimum wages is 
proposed, beginning with 22^ cents per hour or $10.80 per week of 
48 hours in the South, up to 421/^ cents per hour or $20.40 per week of 
48 hours in logging camps of the West Coast and Western Pine Divi- 
sions. 

Article VIII — Control or Production 

Paragraph (a) Empowers the Authority to make estimates of 
expected consumption of lumber and timber products of each species 
and allocate quotas of production on the basis of such estimates 



9S 

among the several Divisions and Subdivisions. Actual quotas among 
Divisions are to be in substantial proportion to production or ship* 
ments of each Division during a representative period. Provision is 
made for flexibility in allocating quotas, provided modification of 
quotas is warranted. 

Paragraph (h) Provides requisite authority and flexibility to the 
Authority in determining quotas to give effect to the provisions of the 
Code in respect to the conservation and sustained production of 
forest resources. 

Paragraph (c) Provides that quotas for individual operators shall 
be determined by the Divisions and Subdivisions upon an equitable 
basis of allocation, approved by the Authority. Provision is also 
made for modifications in exceptional cases. 

Paragraph (d) Stipulates that a reasonable minimum volume of 
production based on practicable operations for each Division shall 
not be denied to any person within such Division. 

Paragraphs {e),\f), (g), and (h) Set forth various provisions in 
regard to allotments that must be observed, one of the most impor- 
tant of which is that no person shall produce in excess of his quota. 

Article IX — Cost Protection 

Paragraph (a) Empowers the Authority in its discretion to estab- 
lish minimum prices designed to cover the cost of production in tlie 
several classifications of lumber and timber products. Such prices 
shall have due regard to the maintenance of free competition among 
species, Divisions and Subdivisions and with the products of other 
industries. 

Paragraph (b) Stipulates that minimum prices shall not exceed 
cost of production, determined in accordance with a proposed formula. 

Paragraphs (c) to (A), inclusive, contain provisions for special 
treatment of small mills, for establishment of lower minimum prices 
for products of inferior quality, for maintaining minimum prices as 
established, for establishing the price of imported lumber, for possi- 
ble tariff adjustments, for obtaining information as to competition 
between imported and domestic lumber, and for other purposes. 

Article X — Conservation and Sustained Production of Forest 

Resources 

This article contains a deliberate undertaking by the forest- 
products industries in respect of conservation and sustained produc- 
tion of forest resources. It also provides for a conference between 
the Secretary of Agriculture and the applicant industries for the 
purpose of devising practicable measures of conserving and sustain- 
ing production of forest resources. 

Article XI — Special Agreements 

This article embodies the provisions of Section 4a of the National 
Industrial Recovery Act. 



99 

Article XII — Cancellation or Modification 

Adjustment of the Code and of rulings issued under it are to be 
made in conformity with any action by the President under Section 
10 (b) of the National Industrial Recovery Act. 

Article XIII — Monopolies 

This article cites that the Code is not designed to promote monop- 
olies and that it shall not be interpreted or administered to suppress 
or oppress small enterprises. 

Article XIV — Division and Subdivision Code Provisions 

This article provides for rules and regulations of Divisions and 
Subdivisions under Schedule A, insofar as not inconsistent with 
this Code. 

Article XV — Violations 

It is declared that violation of this Code and of the Rules of Fair 
Trade Practice is an unfair method of competition, subjecting the 
offender to the penalties imposed by the National Industrial 
Recovery Act. 

Article XVI — Rules or Fair Trade Practice 

" The rules of fair trade practice for the lumber and timber prod- 
ucts industry, as set forth in Schedule B attached hereto, are specifi- 
cally made a part of this Code." 

Article XVII — Appeals 

Appeals may be made to the designated agency of any Division or 
Subdivision, and appeals from the rulings of these agencies may be 
made to the Authority. 

Article XVIII — Effective Date and Termination 

Paragraph (a) Stipulates that the provisions of the Code as to 
hours and wages shall become effective three days after approval by 
the President and other provisions within ten days after approval 
by the President. 

Paragraph (6) Provides that the Code shall terminate on June IG, 
1935, or on such earlier date as the National Industrial Recovery Act 
may cease to be effective. 

The Code was formulated by representatives of the Lumber and 
timber products industries during the course of several weeks, with 
unofficial assistance from representatives of the National Recovery 
Administration. It was originally submitted on July 10, 1933, and a 
revise draft, under date of July 28, 1933, giving effect to desirable 
alterations as brought out in the hearings, has also been submitted. 

After legal notice of the hearing had been duly published, the hear- 
ing opened July 20, 1933, and was concluded July 26, 1933. The 



ido 

undersigned Assistant Administrator conducted the hearing, with the 
assistance of members of the staff of the National Recovery Adminis- 
tration, and in the presence of representatives of the Industrial Ad- 
visory Board appointed by the Secretary of Commerce, of the Labor 
Advisory Board appointed by the Secretary of Labor, and of the 
Consumers' Advisory Board appointed by the Administrator. Repre- 
sentatives of the Forest Service of the United States Department of 
Agriculture were in attendance for part of the time. 

Responsible representatives of all of the major divisions of the 
lumber and timber products industries attended and took part in the 
hearing, and wide public interest was also manifested by the presence 
of a large audience and a full press complement. 

To cooperate in giving effect to the provisions of the National In- 
dustrial Recovery Act, the lumber and timber products industries 
appointed an Emergency National Committee. This committee was 
in general charge of drafting the Code and of arranging for the wit- 
nesses who appeared in its support. In addition, many persons not 
selected by the Emergency National Committee, who claimed interest 
in the matters under consideration, were heard. Several representa- 
tives of Labor were heard. By means of questioning all witnesses, 
the Assistant Administrator sought to develop the issues clearly in 
full detail. 

A complete list of witnesses with their affiliations is attached as 
Appendix 1. 

All statutory and regulatory requirements were observed. 

III. Sumniao^ and Conclusions on the E'vidence. — 1. Hours of 
Labor (Recommended reduction of weekly hours to 40). 

Witnesses stated that the lumber and timber products industries 
had been accustomed to operate a comparatively large number of 
hours per week, approximating 60 in the South and 48 in the North- 
west. Accredited representatives of the lumber industry in the 
South stated that they were willing for their region to accept the 
responsibility of proposing a week of 48 hours, as compared with 
that of 60 hours which is customary (Sheppard, (2) L-6-108). 

Representatives of the industry in the West considered that a week 
of 48 hours in the woods and 40 hours in the mills was practicable, 
with certain reservations to conform to the seasonal character of 
important areas of this region (Greeley, (3) C-6-16, 18; Mason (4), 
S-4-103). 

Calculations by the Southern Pine Association indicated that a 
week of 48 hours in the South would provide reemployment for 
31,250 wage earners (Sheppard, (2) L-7-109). On the basis of 40 
hours in the mills and 48 hours in the woods in the West it was 
estimated that reemployment would be given to 14,000 workers 
(Ruegnitz, (2) Q-4-151; Greeley, (3) C-7-17). Thus the two dis- 
tricts where the bulk of the industry is located were estimated, on the 
maximum hours proposed by the industries, to provide reemployment 
for 45,250 persons, assuming no change in current part-time employ- 
ment of workers. 

On the basis of the maximum hours per week which are recom- 
mended in this report and with output of lumber and timber prod- 
ucts, including woodwork, estimated as continuing to exceed the de- 



101 

pressed levels of the first months of 1933 by 100 percent, as was the 
case in June and July, it is calculated that additional employment 
would be available for some 114,500 persons.^ As employees in the 
lumber and timber products industries, not including woodwork, 
wooden package, and miscellaneous industries, declined from 419,084 
in 1929 to approximately 196,500 in 1931, reabsorption of displaced 
labor is of paramount importance. Although employment has in-, 
creased markedly in the several lumber and timber products indus- 
tries during recent months, there was no difference of opinion 
among witnesses that much of the increase has been due to specu- 
lative cutting, manufacturing, and purchasing of timber products 
for the purpose of anticipating higher prices (Compton, (1) B-7-14; 
Greeley, (3) D-3-21; 30 and 31). 

During the early months of 1933 the industries as a whole were 
operating at approximately 16 percent of capacity, with average 
hours per week of less than 40. For the months of June and July 
operations were about 31 percent of capacity, with estimated addi- 
tions to the labor force of 31,767.^ 

After giving due weight to all relevant considerations, the conclu- 
sion has been reached that maximum hours of labor of 40 per week 
should be established, both for the South and North, as well as for the 
Northwest, although this represents an average shortening of hours 
of approximately y^ for the South and North as compared with ^{3 to 
Yq for the Northwest. There was no discussion at the hearing of the 
economic effects, so far as the South was concerned, of a still further 
shortening of the hours of work to 40 per week, except that a repre- 
sentative of labor advocated a work period of less than 40 hours 
(Green, (3) L-3-66). It is impossible to indicate, therefore, the 
precise results of establishing a 40-hour week in the lumber and 
timber products industries of the South, except that it seems clear 
that corresponding reductions of hours in competing industries will 
be essential if the relative position of the southern lumber industry is 
to be maintained (Sheppard. (2) C-2-130, 140, 141). 

On the assumption that this interindustry competitive equilibrium 
will be maintained, an increase in volume of sales, permitting an in- 
crease of about 50 percent over recent rates of production, would be 
necessary to restore employment to us many persons as were occupied 
with lumber and timber products 1-dustries in the South during 1929. 

As for the Douglas fir industry, which is the principal alternative 
source of supply in competitive markets to southern soft woods, a 
work week of 40 hours was proposed in mills and factories (Greeley, 
(3) C-6-16) and 48 hours in logging camps (Greeley, (3) C-4-14). A 
reduction to 40 hours per week in both mills and camps would not 
provide as much reemployment, on a relative basis, as the same 
schedule when applied to operations in the South (Sheppard, (2) 
P-2-139). 

About 65 percent of total lumber production is absorbed by the 
construction industry. Therefore sustained improvement in the 
lumber industry cannot be expected apart from revival of building 
(Greeley, (3) 1-7-51; (6) CC-2-160), particularly construction of resi- 

^ Basis of calculation shown in Economic Report. 
29222° 296-57 34 2 



102 

dences (Compton, (1) B-8-15, 16). Competent testimony indicated 
that a lag of about nine to fourteen months occurs (Compton, (1) 
B-16-23) before definite improvement in building contracts is re- 
flected in sustained increase in output of lumber. The lumber indus- 
try is more likely to benefit from increased activity in other industries 
than to be the cause of improvement elsewhere (Sheppard, (2) 
M-1-111). Accordingly, considerable time must elapse before the 
effects on volume of employment can be definitely known as a result 
of establishing a work week of 40 hours. 

2. Exceptions to Forty Hour Maonhnmn Work Week. — Seasonal fac- 
tors of pronounced character are encountered in certain divisions of 
the timber industry. Fortunately, in the principal producing regions 
seasonal factors are of no great importance. But in the high Sierras 
and other districts of the West (Mason, (4) S-2-101), operations are 
impossible during the winter (Johnson, (7) D-1-19), whereas in cer- 
tain sections of the northern hard and soft wood regions the winter 
is the period of greatest activity in logging (Osborn, (5) P-2-66,). 
Operations in some areas must be intensively conducted in those 
seasons of the year when the condition of the streams makes water 
driving feasible. Moreover, fires, wind storms, and other exceptional 
causes (Fentress, (6) JJ-3-196, 197) often make it necessary to har- 
vest timber with great rapidity if large losses in our timber resources 
are to be avoided. For all of these reasons the testimony was con- 
vincing that certain flexibility in the maximum hours of labor per 
week should be introduced, accompanied by adequate restrictions to 
prevent such flexibility from being made the vehicle of abuses (John- 
son, (7) C-4-18; Mason, (4) S-4-103). Necessary safeguards are pro- 
vided (Art. VI, par. (a)) by requiring that average employment in 
any seasonal operation shall not exceed the standard schedule of 
hours during any calendar year. 

Child labor is not a serious problem in the lumber and timber 
products industries. In the code as submitted they proposed that 
no person under 18 years of age should be employed, with certain 
exceptions, but in order to obtain uniformity in the various industrial 
codes a minimum age of 16 has been substituted. 

3. Machine Hours. — In contrast with many other industries, only a 
comparatively small number of lumber manufacturing establishments 
operate more than a single shift. Establishments operating more 
than one shift are, however, of considerable importance in volume of 
production (Sheppard, (2) M-3-113; Greeley, (3) C-2-12, 15). 
Under present operating conditions with capacity greatly in excess 
even of the accelerated output of recent months, there has been no 
special problem of two or three shift operations, but this is a possi- 
bility if maximum hours of employment per week are placed at 40. 
This contingency has been provided for in drafting the Code. Article 
VIII, providing for control of production, at the same time places an 
automatic limitation on the abuses of excessive machine hours. 

It was testified at the hearing that the abuse known as "stretch out" 
is not characteristic of the lumber and timber products industries 
(Greeley, (3) H-2-40). 

4. Wages. — A very high proportion of the employees in the lumber 
and timber products industries are classified as unskilled and semi- 



103 

skilled. For example, 83.51 percent of total employees in sawmills, 
on an average for 1928, 1930, and 1932, are classified as laborers by 
the United States Bureau of Labor Statistics. Due to this fact, 
these industries have tended to pay comparatively low wage rates. 
Even in 1928 laborers in southern sawmills received a weighted aver- 
age wage rate of 21.9 cents per hour, and this unsatisfactory rate had 
declined to 12.6 cents per hour in 1932. Testimony revealed the 
astounding fact that wages of 5 cents per hour have not been uncom- 
mon in recent months (Ambrose, (7) J-4-64). Weighted average 
wages in sawmill industries for the entire United States in those cate- 
gories classified as laborers amounted to 20.5 cents per hour in 1932. 

Thei-e was uniformity of opinion that wage rates should be increased 
and gratification that agencies of the government were prepared to 
afford encouragement and protection to operators desiring to pay 
higher wages (Sheppard, (2) M-7-117; Ambrose, (7) 1-4-57 and (7) 
J-3-63), against the economic pressure and industrial demoralization 
resulting from the activities of the small minority who would not 
cooperate in improving wage standards (Sheppard, (2) P-9-146). 
Proposals by the southern lumber industry to increase minimum wages 
to 221^ cents per hour represented an advance of practically 100 
per cent from the ave«-age of 11.6 cents per hour (Sheppard, (2) 
M-6-116) and three hundred fifty percent above the minimum wages 
paid in the month of April 1933. This is convincing evidence of the 
industry's desire to contribute toward increasing purchasing power in 
accordance with the principles of the National Industrial Recovery 
Act. No little apprehension was revealed in the hearing, both by 
advocates and opponents of the Code, in regard to the effects of 
attempting such a large increase in wage rates (Sheppard, (2) P-5-142) . 
Disturbance of the interspecies equilibrium between southern pine 
and Douglas fir (Sheppard, (2) P-2-139, 140) was feared, as well as 
adverse effects from increasing the advantage of products of other 
industries which are competitive with lumber and mill products 
(Sheppard, (2) 0-1-129, 130). 

A dilemma is presented in respect to minimum wages in the South. 
They have been deplorably low. But even so the products of this 
region are in keen competition with the products of other regions 
which have paid much higher wages. This competition is always in 
precarious balance. As the proportion of labor costs to total costs 
is higher in the South than with its competitors (Sheppard, (2) 
P-2-139), increase in labor costs tends to disturb this balance. If 
sufficiently disrupted the market for southern woods would be 
decreased production reduced, and employment necessarily decreased. 
Any rate of wages fixed for the South must therefore be determined 
with a view to disturbing the competitive balance as little as possible. 
The objective is to increase wages and not decrease employment at 
the same time. 

In addition to the very real problems which are involved by reason 
of increased wages in the southern pine industry, there are certain 
less important areas such as the northern and central hard wood 
Subdivisions where difficulty might be caused by wage increases 
which might alter interspecies equilibrium (Osborn, (5) R-1-73, 74: 
Townsend, (10) B-492). 



104 

Since hours of employment for j)ersons classified as laborers in 
sawmill occupations had declined to 38.0 per week during 1932, it is 
evident that total earnings, based on a weighted average of 20.5 cents 
per hour represented inadequate weekly income. Pay rolls for the 
entire lumber and timber products industries had, in fact, declined 
from $579,000,000 in 1929 to approximately $110,000,000 ^ during 
1932j with the result that an adequate contribution to national pur- 
chasmg power was not obtained from these industries, which were 
the fourth largest employers of industrial labor (Comptron, (1) 
B-12-19). 

One of the spokesmen for labor contended that wages should be 
greatly increased, but he presented no specific evidence (Weaver, 
(5) H-2-37 to 39) as to what increases he considered justifiable nor 
as to how the industries in question could operate if they paid sub- 
stantially higher rates than those proposed in the Code which was 
presented. 

On the basis of average rates of pay and number of hours of employ- 
ment per week, average earnings lor laborers in sawmills for the 
United States in 1932 had reached the unsatisfactory level of $7.78. 
Corresponding weekly earnings for laborers in southern sawmills 
were $4.94. It is true that declining prices* of commodities some- 
what mitigated the effect of these inadequate wages, and on the basis 
of 1929 ^ prices the average weekly wage for sawmill laborers in the 
United States in May, 1933, would have had the purchasing power of 
$11.19, while that of employees in southern sawmills would have been 
equal to $7.11. 

There is imperative need that purchasing power derived from the 
lumber industry be increased, and this can be accomplished if the 
industry is enabled to pay and does pay higher wages. Although 
the wage schedules proposed by the southern industry represent an 
important advance over those at present in force, somewhat further 
advances are believed to be justified. After careful consideration 
of the evidence presented in the hearing, as well as that prepared by 
the Division of Planning and Research of the National Recovery 
Administration, it was concluded that wage rates at least equal to 
those paid in 1929 were desirable and possible, provided that 1929 
rates equaled or exceeded 30 cents per hour. However, a large num- 
ber of employees in the lumber and timber products industry, prob- 
ably amounting to 80 percent of the total, received less than 30 cents 
per hour in 1929. 

No group of laborers in logging camps or mills were represented 
as having received less than 20 cents an hour in 1929, and it is rec- 
ommended that groups which received this inadequate wage should 
have such rate increased by 15 percent with increases on a uniformly 
diminishing scale for each cent per hour between 20 and 30 which 
was received in 1929 by any wage group. Application of this formula 
would establish minimum wages in the lumber industry as 23 cents 
per hour, and this would be the equivalent of 34.7 * cents per hour in 
May 1933, on the basis of 1929 prices * or 62^^ percent in excess of the 
weighted average of wages ° paid to employees classified as laborers 

=• Assuming that 1932 pay roUs declined equally with lumber production as reported 
by the Census for 1932. 
" Cost of living 1929= 100. 

* Adjusted to 1929 cost of livings 100. 

• Also adjusted to the cost of living, 1929. 



105 

in southern sawmills in 1928, detailed statistics for 1929 being un- 
available. 

On the basis of increased labor cost for three important softwood 
regions, purchasing power will immediately be increased $32,500,000 
per annum, assuming lumber production only at the 1932 volume.® 

Some 85 percent of all employees in the lumber and timber prod- 
ucts industries will be directly affected and benefited by the recom- 
mended minimum wage rates, in addition to the 114,500 ^ who, it is 
hoped, will be added to the pay rolls. 

5. Labor Organizations. — Labor is not highly organized in the lum- 
ber and timber products industries. The principal exception to this 
general condition is found in the West and Northwest (Ruegnitz 
(2) S-2-163), where the Loyal Legion of Loggers and Lumbermen 
(Greeley (3) E-2-24), commonly known as " The Four L " is of con- 
siderable importance. About thirty percent of total employees in the 
regions where the Four L is established are included within its mem- 
bership (Ruegnitz' letter 8/7/33). This organization engages in 
collective bargaining (Greeley (3) E-2-24) (Ruegnitz (2) S-2-163) 
on behalf of its membership and has been in considerable part re- 
sponsible for the fact that wages and working conditions are more 
favorable in the West and Northwest than in other timber producing 
areas. 

Certain witnesses stated that the Four L was a company union 
(Green (3) 0-4-84; Noral (8) DD-6-163; Hass (5) J-3-44), but the 
representative of the Four L testified that his organization was con- 
ducted for the benefit of employees, with locals at operations under 
125 different managements, and that in bargaining with employers 
members of the Four L were at liberty to choose nonmembers to 
represent them (Ruegnitz (5) K-1-45), Representatives of the log- 
ging and manufacturing industries declared that membership in the 
Four L was not a condition of employment or of preference in the 
territory where the organization is located (Greeley (3) E-2-24). 

6, Cost Protection. — Ample evidence was produced at the hearing 
that the industries have operated on an unprofitable basis for several 
years and that they did not share in the years of prosperity termi- 
nating in 1929 (Compton (1) B-5-12). Their financial position at 
present will not permit the assumption of additional charges unless 
such increased costs as may be assumed can concurrently be recovered 
by equivalent adjustments in prices (Compton (1) B-10-17) for lum- 
ber and timber products (Stibolt (4) V-2-116; Mason (4) P-2-88). 

Consequently it was proposed, both in the Code (Art. IX) and in 
the hearing (Stibolt (4) V-4-118 to 121), that reasonable costs should 
be determined and that lumber and timber products should not be 
sold or offered for sale at prices which did not cover such costs. 

Public protection against abuse of this power to fix minimum 
prices is essential. This can largely be accomplished by having a 
mathematical formula for determining what constitutes cost protec- 
tion. An additional protection is that of interested and informed 
buyers. Representatives of the national retail and wholesale asso- 
ciations are to be members of the Lumber Code Authority. Deter- 
mination of prices is required to come before the Authority in order 
to prevent unfair competition between divisions as well as in the 
public interest. Representatives of the Administrator are also to sit 

" Refer to Economic Report. '' Refer to Economic Report. 



106 

on the Authority. If in the exercise of their interested and informed 
judgment on prices the retail and wholesale representatives believe 
unduly high prices are being proposed or are in effect, the Adminis- 
trator is instantly informed through his own representatives on the 
Code Authority and has an immediate veto. 

Inasmuch as forests constitute a national asset of the highest im- 
portance, they should not be utilized in an improvident manner. 
During recent years, however, restricted markets for timber tracts, 
combined with heavy carrying charges (Compton (1) C-3-26), have 
encouraged uneconomic operations (Greeley (1) H-10-85), to the 
point where timber was converted into lumber and wood products 
in some instances at an actual out-of-pocket operating loss (Mason 
(4) Q-1-91), not to speak of no recovery whatever on the wear and 
tear of plants and equipment. Conversion of timber under such 
conditions always entails waste by forcing the operator to leave 
low-grade logs in the woods and burn low-grade material at the mill 
(Greeley (1) H-10-85) (Denman (Sa) E-2-22). National interests 
are injured by these practices (Compton (1) E-2-25), and there is 
no apparent method of terminating such abuses (Stibolt (4) V-1-115) 
except by forbidding the sale of timber products at prices which do 
not cover cost of production (Stibolt (4) W-4-124). Competent wit- 
nesses testified that the responsible elements in the lumber and tim- 
ber products industries deplore the unnecessary destruction of timber 
resources, but that financial pressure and the competition of many 
small producers of timber (Greeley (1) F-3-55), including farmers, 
often without cost records (Sells (6) T-2-115), prevent the orderly 
harvesting of the nation's forests by those who favor a constructive 
policy. 

In general terms, it can be stated that in past years and especially 
in certain regions, although in a constantly diminishing degree, capital 
has been primarily interested in standing timber (Fentress (6) 11-2-189 ; 
(6) LL-1-206; (6) MM-2-212-213), whereas the chief concern of labor 
is in connection with logging and milling operations and the wood- 
working industries. In view of the primary object of the National 
Industrial Recovery Act to increase employment and purchasing 
power, immediate emphasis has been placed on logging and manu- 
facturing activities in preparing the Code of Fair Competition. This 
does not imply that the rights of owners of standing timber have 
been sacrificed, but for the present they have been subordinated to 
the necessity of placing more men at work at higher wages (Fentress 
(6) MM-2 to4, 212-14). 

According to a study by the United States Forest Service in 1932 
nearly 41 percent of the standing timber in the United States was 
owned by the Federal, State, and local governments, and 59 percent 
by lumber and timber companies, farmers, and others. Prices for 
timber lands had a rising tendency for several decades, but that 
tendency was interrupted during the nineteen-twenties, and current 
prices are usually far less than those which appear on the books of 
manv if not most of these owners (Compton (1) B-11-18; Fentress 
(6) HH-2-185; Greeley (1) F-13-65). 

Because of forced sales of timber tracts for tax purposes (Greeley 
(4) Z-3-138), because of exhaustion of financial resources, and because 
of the uncertain outlook as to timber values, it is difficult to establish 
a current fair value for standing timber (Sheppard (6) FF-4-175; 



107 

Denman (5a) J-3-60). Several witnesses declared, however, that 
determination of current fair value can be accomplished (Sheppard 
(6) FF-3-174-176; Ambrose (7) J-1-61; Greeley (4) Z-1-136). 

It would be contrary to public policy to permit the introduction 
of any formula for cost protection which would attempt to reestab- 
lish such values of stumpage as prevailed during the early nineteen- 
twenties, when peak prices were reached. Nevertheless, converters 
of timber into useful products should pay or be paid a fair price for 
the raw material consumed, which in this case is stumpage. In no 
other manner can the lumber and timber products industries be 
rehabilitated and assurance be had that these industries will afford 
regular and increasing wages to that large number of persons who 
look to them for employment. 

" Minimum price " is not an absolute term, but can be calculated 
according to various formulas which are defensible. There are, how- 
ever, definite limitations within which any specific minimum price 
must be established. The lower limitation would have to include 
out-of-pocket operating expenses ; the upper limitation would, in addi- 
tion, include recovery of capital. Profit in no case should constitute 
an element of 'minimum price authorized by governmental authority. 

Little difference of opinion exists as to the elements in a sound 
formula for affording cost protection on such matters as the inclusion 
of wages, materials and supplies, necessary selling expense, overhead, 
insurance, and taxes (Greeley (4) Z-3-138to 156; Stibolt (4) Y-4-134). 
Interest actually paid should be allowed (Greeley (4) AA-7-145). 
Aside from direct-out-of-pocket costs, which obviously should be 
allowed, important questions of principle arise as to recovery of 
capital and by means of a minimum price assuring ability to meet 
financial obligations. It is clear, however, that if the lumber and tim- 
ber products industries are to continue as privately owned and oper- 
ated enterprises, they have to receive a reasonable price for standing 
timber and to amortize the plant and equipment necessary for con- 
verting timber into lumber and timber products. These considera- 
tions have been kept in mind in preparing the proposed formula for 
cost protection. 

Of some 20,000 sawmills in the United States, more than 15,000 are 
valued at less than $5,000 each (Compton (1) B-6-13), and a large 
number of farmers sell small quantities of logs to sawmills, or else 
operate sawmills themselves. Total volume of logging and manufac- 
turing operations by farmers is of considerable importance (Townsend 
(10) B-487,488). These farmers and small operators frequently do 
not keep accounts, and even some of the large mills are carrying obso- 
lete and excessive plant and equipment on their books, with corre- 
sponding exaggeration of depreciation charges (Sells (6) T-2-115; 
Denman (4) EE-3-159) . Adequate, uniform, and realistic accounting, 
particularly among small eetablishments, is not characteristic of this 
industry (Townsend (10) B-491) . Although proper charges for depre- 
ciation constitute a valid element of cost, this element cannot be in- 
cluded in the proposed cost protection formula as applied to the lum- 
ber and timber products industries until more and better data are 
available. 

Permission to establish minimum prices for lumber and timber 
products is believed to be necessary to make possible the increased 
wage schedules which are recommended in this report. But the neces- 



108 

sity of devising a cost protection formula also affords an opportunity 
to initiate a comprehensive conservation and reforestation program 
of the widest significance, such as the industries have agreed to under- 
take, in accordance with the stipulations of Article X of the Code. 

7. Conservation and Sustained Production. — Article X of the Code 
as originally submitted, was redrafted in consultation with the 
Forester of the United States and spokesmen of recognized conserva- 
tion agencies (Compton (2) J-5-96). The Forester then appeared at 
the hearing and approved the revised Article X on condition that the 
industries undertake to bring about conservation and reforestation, 
which was agreed to as a binding covenant. This action elicited the 
following statement by Major R. Y. Stuart, Forester of the United 
States : 

" May I say, Mr. Administrator, in my judgment this article as it 
has been amended to my mind opens up a new era in forestry, forest 
production, forest protection, and we in the Forest Service will very 
eagerly do all that we can not only to cooperate with the industry in 
the performance of its obligations, but also put forth our utmost 
efforts to have the public, particularly the Federal Government, 
expend its cooperative effort to that end." (Stuart (2) T-1-115). 

It is gratifying to remark the fact that an issue which has been the 
subject of such prolonged controversy is finally concluded by the 
voluntary action of the lumber interests. After many years of 
studies and conferences, there appears to exist a clear understanding 
between the lumber interests and the Forest Service on the many 
practical problems which are involved in giving effect to the principles 
of conservation, as well as a meeting of minds as to their solution. 
I therefore recommend that the further negotiations and commitments 
provided for in the revised Article X be approved, but on the under- 
standing that in the event this article is not found to be effective, a 
further hearing or hearings may be called to revise it. 

Those who use lumber and timber products should pay for the 
replacement of such products. As one of the factors of minimum 
price, subject to market conditions, it is proposed to include an amount 
adequate to cover the cost of conserving and replacing as much timber 
as is harvested. Estimated additional charges which will have to be 
imposed upon each 1,000 feet of lumber in order to bring about this 
important result are surprisingly small. They have been obtained 
from the Forest Service of the United States Department of Agricul- 
ture and appear in detail in the report of the Division of Planning 
and Research. 

For a few of the more important species the increased price for each 
1,000 feet of lumber in order to accomplish full conservation and 
replacement is estimated by the Forest Service as: 25 cents to 45 
cents for Douglas fir, 75 cents to $1.00 for southern pine, 50 cents for 
central hardwoods, 25 cents for redwood. If the cost protection 
formula can be utilized for accomplishing the major objectives of 
conservation and reforestation the device will be amply justified. 

8. Production Control. — Evidence presented at the hearing was 
uniformly to the effect that much of the recent increase of activity 
in the lumber and timber products industries, perhaps as much as 
two thirds, represents speculative operations or operations based on 
speculative buying (Compton (1) B-7-14 : Greeley (3) F-3-30to32). 



109 

Logging and sawmill activities have continued at a low level for so 
protracted a period of time (Greeley (1) F-4-56) and capacity is so 
greatly in excess of even the enlarged operations of recent months 
(Fentress (6) II-3-190) that control of production is imperative if 
renewed and accentuated demoralization of the industries and dis^ 
location of labor are to be avoided (Fentress (6) LL-3-208 to 209). 

There was evidence (Stibolt (4) W-1-121 and 129; also (5) E-4-20) 
that particularly in the case of lumber, demoralized selling below cost 
is probable, even when the volume of production is controlled. A 
log produces many items of lumber, some valuable, some nearly 
worthless. The valuable must carry the nearly worthless, and a 
balance must be struck between profit on the one and loss on the 
other, if the cost of conversion is to be recovered in prices (Stibolt 
(4) W-1-121). Individual operators, with defective cost-accounting 
systems, are not competent to determine what schedule of prices will 
in the long run be equivalent to the cost of manufacture. The 
lumber operator without knoAvledge of his costs has the power to 
undermine the whole price structure, and his incompetence imperils 
even the best informed of his competitors. 

Application of the principle of production control presents many 
difficulties. One of the most controversial subjects discussed at the 
hearing was whether control of production would be equitably admin- 
istered (Fairhurst (8) Z-6-143; Johnson (7) G-7-38; Denman (4) 
FF-4-167). The experience of the Lumber Survey Committee of the 
United States Timber Conservation Board, which has made quantity 
surveys of expected consumption for the past two years, has demon- 
strated the feasibility of determining aggregate quotas for the lumber 
industry as a whole and the Divisions and Subdivisions thereof. 

Several persons contended that the Administrative machinery 
would inevitably fall into the hands of large operators (Fairhurst (8) 
Z-5-142; Walter Johnson (7) C-3-17). Others recognized that expe- 
rience would be required to determine aggregate quotas for the lumlDer 
industry as a whole, which would at the same time maintain a reason- 
able balance between production and consumption and assure an 
adequate supply of timber products, as well as to make specific allot- 
ments to the various producing regions and to individual operators 
(Greeley (1) F-10-62 and 64). 

In the draft code as submitted, it is proposed that "Quotas for 
persons within respectiveDivisions orSubdivisions shall be determined 
by the designated agencies thereof in accordance with an equitable 
basis or method of allocation * * * 55 approved by the adminis- 
trative organization to be established. Vague language of this 
character is not acceptable. Allotments should be based upon a 
definite formula composed of factors which can be mathematically 
determined from ascertainable facts. The formula should be such 
that each operator could virtually calculate for himself the allotment 
which he should receive. Any other arrangement would create 
suspicion and contribute to the realization of that apprehension 
which was expressed by several witnesses (W. Johnson (7) E-4-25 
and G-7-38) who commented on the proposal for control of production. 
Provision should be made for emergency situations, such as timber 
affected by fire, wind, and insects (Fentress (6) JJ-1-195 to 197). 
Appeals on allotments should be possible at reasonable cost and with 
the assurance of prompt decisions (Greeley (1) H-5-80 and 81). 

29222 • 296-57 ^34 3 



110 

Full publicity should be provided as to the determination of quotas 
and allotments and as to all appeals and decisions thereon. To give 
effect to the foregoing suggestions, an alternative proposal to that 
submitted by the lumber and timber products industries has been 
prepared and is recommended herewith. 

Many persons within the industries desire to place in the Code of 
Fair Competition (Greeley (1) F-9-161 and 162) a provision that 
additional sawmills and wood-working establishments should not be 
permitted in view of the recognized over-capacity which at present 
prevails. After due consideration and in the light of representations 
made by the National Recovery Administration, limitation of new 
capacity is not proposed in the Code. 

In revising the production control proposals which were submitted 
by the industries, attention has been given to the principles outlined 
above. The revised draft provides for mathematical determination 
of production, quotas, for the purpose of balancing consumption and 
production, while assuring adequate supply; it stipulates that all 
producers of lumber and timber products are entitled to and shall 
receive allotments; it provides definite factors which must be given 
consideration in the determination of quotas and allotments, yet 
preserves the principle of self-government in industry by permitting 
each Division and Subdivision to adjust the several elements of the 
formula to its own peculiar conditions ; further flexibility is provided 
in that exceptions are permitted for adequate cause ; simple, inexpen- 
sive and expeditious methods of appeal are assured to those who 
believe that specific allotments have been inequitable ; publicity for all 
official acts is required ; finally, it is recognized that improvements in 
constructing and applying the formula can undoubtedly be made in 
the light of experience, and revision is therefore permitted and 
expected. 

Procedure for establishing quotas, as recommended in Article VIII, 
should be based upon that utilized with pronounced success by the 
Lumber Survey Committee of the United States Timber Conservation 
Board. This procedure has the advantage that it can be promptly 
applied on the basis of data already in hand. It is correct in basic 
principle and is subject to further refinement in the light of statistics 
to be made available by the Code provisions and the facilities under 
the Code for analyzing and applying the statistics. 

The central factor in this method is inventories. The right volume 
of stocks adequately to meet the needs of consumption under varying 
conditions of demand is determined from statistical evidence, and pro- 
duction is regulated to maintain such stocks. This method of han- 
dling production control has been effectively applied in certain 
important industries. AVhile the language of Article VIII does not 
in terms prescribe such method, it does permit it. 

9. Monopolies. — The Code as recommended will not result in 
monopolization in the lumber and timber products industries, nor 
promote monopolistic practices. As stated above, there are now 
some 20,000 sawmills in the United States, of which more than 15,000 
are small enterprises whose mills are valued at less than $5,000 each 
(Compton (1) B-6-13). The Code as recommended contemplates 
their continued operation and guarantees free access to the market 
to new enterprises, subject to the same limitations as are applicable 
to those already in the market, namely, that prices shall not be below 



Ill 

the average cost of production as and when determined by the Code 
Authority, and production shall not exceed the allotment made by 
the agency of the Code Authority in that Division or Subdivision in 
which such new enterprises are located. 

The operation of these two limitations is subject to supervision 
which will adequately safeguard the public interests against monopo- 
listic practices in unreasonable or unwarranted restriction upon either 
price or production policies. Subject to these two limitations, the 
competitive forces within the industry will be in active operation, 
with the necessary incentive to keep prices reasonable furnished by 
the competition of substitute materials, and the necessary incentive 
to obtain maximum production furnished by the constant pressure on 
the industry of carrying charges for stumpage and excessive pro- 
duction capacity. In view of the number of operators in the industry, 
there is no danger of domination of prices or production by any single 
operator or any group of operators. The Code as recommended 
protects the small enterpriser by assuring him a production quota 
and minimum prices that will not be below the average cost of pro- 
duction in his Division. The numerical superiority in the industry 
of small enterprises and the form of organization of the agencies 
of the Authority are in themselves safeguards against any oppressive 
or discriminatory operation of the Code against them. 

10. Administrative Agency. — The lumber and timber products 
industries' Code in substantially the form recommended in this 
report would necessitate considerable administrative machinery for 
its enforcement. The lumber and timber products industries are 
prepared to assume the responsibilities of self-government (Greeley 
(1) F-14-66) , subject to governmental supervision, and they therefore 
propose to create a Lumber Code Authority which shall be a non- 
profit corporation with the board of directors composed of representa- 
tives of the several producing regions. Such an Authority should be 
approved only if membership in the component Divisions and Sub- 
divisions in the several producing regions and among the various 
constituent industries shall be open to all logging operators and 
manufacturers of timber products on equal and reasonable terms. ^ 

Approximately 73 percent of all lumber and timber products is 
included in the membership of the trade associations which would be 
represented in the Lumber Code Authority. This is a high degree 
of organization for any industry. It would therefore seem to be the 
logical agency to which self-government within the industries should 
be entrusted. 

Sufficient provision was not made in Article III, as submitted, for 
eliminating the abuses which have largely contributed to the present 
unsatisfactory state of the timber industries. The proposed Code 
Authority should be authorized immediately to prohibit trade 
practices which have already been declared to be unfair by the 
Federal Trade Commission. 

It should also be empowered to devise and apply fair trade practice 
regulations, designed to assure adequate supplies of well-manufac- 
tured lumber and timber products at fair prices, to contribute to 
conservation and reforestation, and to enable the industries to 
furnish steady employment at living wages to those hundreds of 
thousands of employees who look to them for a livelihood. Certain 

• From "Lumber and Timber Inf g mation", published by National Lumber Manufacturers Association. 



112 

suggested amendments of and additions to Article III are intended 
to bring about these results. 

Some of the specific fair-practice proposals are not acceptable 
(Gerrity (9) Q-4-2ol to273) (Gillman (9) W-4-274, particularly those 
that deal with retail distribution (Tozzer (10) EE-6-311), and this 
section of the Rules of Fair Trade Practice as submitted by the 
industries is not included in the draft recommended for your approval. 
It should be returned to the industries for revision. As proposed 
by the industries, retail lumber dealers would in many circumstances 
be given the status of local lumber monopolies to the detriment of the 
public (Gerrity (9) 11-2-254). This should not be allowed. It should 
be possible for the industries, in consultation with the wholesale 
and retail distributors of their products, to devise means of assuring 
orderly, fair, and economical distribution, not subject to the objec- 
tions which have been outlined. They should be required to submit 
revised proposals by January 1, 1934. 

In addition to the Rules of Fair Trade Practice which are appli- 
cable alike to all Divisions and Subdivisions, the industries proposed 
numerous exceptions and additions which are intended to apply to 
particular situations. Some of these are inconsistent with the general 
Rules of Fair Trade Practice. Need for prompt action in authorizing 
the industries as a whole to adopt their Code and put it into effect 
does not afford sufficient time to harmonize these exceptions and 
additions with the general Rules. 

Consequently, it is recommended that the Rules of Fair Trade 
Practice shall not come into force until November 1, 1933. During 
the intervening period opportunity will be afforded to effect revision, 
satisfactory to the Administrator, in the Rules as proposed by Divi- 
sions and Subdivisions and to have them become effective on the 
foregoing date. 

Nevertheless, the time is most opportune for eliminating certain 
unfair methods of competition which have afflicted the lumber 
industry and also for introducing improved standards of production 
and marketing which will be of permanent benefit. Even though 
a small portion of the Rules of Fair Trade Practice, as submitted by 
the industries, is not in such form that it can be recommended for 
immediate approval, a requirement that fully comprehensive rules 
of fair trade practice shall be prepared and put into effect with the 
approval of the Administrator should be one of the conditions of 
authorizing the Code as to hours, wages, cost protection, control of 
production, and other aspects of fair competition. 

Branding or marking of lumber and timber products has been 
officially endorsed by producers, distributors, and consumers for more 
than ten years, and the principle is incorporated in " American Lum- 
ber Standards," which establishes the bases of lumber grading. It 
has also received the approval of the United States Timber Con- 
servation Board, which contains the following statement in its " Con- 
clusions and Recommendations," dated June 8, 1932 : 

" Regulations which would require that shipments of lumber and 
timbers in interstate commerce be graded and identified in accordance 
with publicly recognized standards of grading and inspection are 
essential to the protection of the public interest. Unless the industry 



113 

speedily and effectively assumes this responsibility, Federal regula- 
tions comparable to the so-called ' pure food ' laws must be invoked." 

The branding or marking of lumber, timbers, lath, shingles, and 
flooring in such a manner as clearly and permanently to indicate (a) 
species; (b) whether the dimension is standard; (c) grade; and (d) 
dryness, should be established as standard practice to the extent that 
the practical considerations involved permit and as soon as reasonable 
and workable provisions can be developed for making such practice 
effective. This practice is not proposed by the industry in the Code 
as presented. The industry should be required to develop and 
present a definite plan of marking lumber and other forest products 
and submit it to the President for approval not later than January 
1, 1934. 

Certain differences of opinion among producers of western pine 
fvere set forth at the hearing. A group of producers of western pine 
lumber in California did not feel that they were properly represented 
by the Western Pine Association, asserting that differences of condi- 
tions in their region called for their recognition as a separate division 
under the lumber Code. Sufficient evidence was not presented to indi- 
cate that these producers had problems so different in character from 
other establishments in the western pine territory as to justify special 
treatment under a separate code. It is believed, however that the 
group of lumber manufacturers in question, organized recently under 
the name of the California White and Sugar Pine Association, should 
be given appropriate representation in the administration of the Code. 

A group of small manufacturers of railway ties in the Northwest 
wished to be exempt from certain provisions of the Code, as far as 
concerns the West Coast lumber industry. The representative of 
this group (Fairhurst-(6)-AA-4-150-151) did not offer convincing 
reasons why the standards to be observed by the West Coast in- 
dustry should not be applicable to the small operators whom he 
represented. 

A group of wood package manufacturers objected at the hearing 
to being included under the wood package division, largely for the 
reason that they preferred to have their own code and consequent direct 
access to the Administrator, instead of through the channels pro- 
vided in the Lumber and Timber Products Code (Wilson- (9) -B-1-210; 
212; 213). No good reason is apparent for excepting this group. 

A somewhat similar situation was shown to exist in the wood- 
working industries. While 90 percent of the production in those 
industries desire to participate in the present Code of Fair Competi- 
tion, a few highly specialized wood-working establishments expressed 
a wish to submit a separate Code (Smith-(7)-N-4-84). Adequate 
grounds for negotiating a separate code for this small fraction of the 
woodworking industry were not shown. 

Certain West Coast operators urged that exports should be exempt 
from production control. The West Coast district ships over half 
of all lumber exported. These exports constituted about 16 percent 
of the entire production of the West Coast district in 1929 and about 
18 percent in 1932. At least 40 percent of all West Coast mills share 
in this business (Greeley- (6) -Y-5-141). No export item can be pro- 
duced from the log without producing a substantial " side cut ". 



114 

On the average the " side cut," which must be sold in the United 
States, is more than one third of the product of the log. Export 
orders do not diifer materially in volume, period of negotiation, or 
period of shipment from domestic water-borne business, and no 
greater necessity for separate treatment appears in case of export 
than in case of domestic cargo business. No adequate showing of 
the peculiarity of export business was made to warrant exemption 
from production control. To enable domestic producers to meet 
foreign prices, however, export business has been exempted in the 
Code, Article IX (a) from the requirement of maintaining cost- 
protection prices. 

In spite of the comparatively high degree of organization and una- 
nimity of opinion in the industries, it is evident that in some of the 
Divisions and Subdivisions proposed to be established under the Code, 
there are a number of substantial, organized, minority groups. These 
should be accorded reasonable and equitable representation in such 
governing body of each Division or Subdivision as may be established. 
While it is proper that minority organizations within a logical compet- 
itive industry grouping should not be accorded the status of sepa- 
rate entities, it is not proper that they be denied fair proportionate 
representation in the Division or Subdivision governing body. This 
has been accomplished in the proposed organization of the Lumber 
Code Authority and should be accomplished in the Divisions and 
Subdivisions. 

11. Suggested Conditions of Approval, — The lumber and timber 
products industries clearly desire to cooperate in achieving the pur- 
poses of the National Industrial Recovery Act. They prepared their 
Code with care and with the intention of increasing employment by 
shortening hours, of expanding purchasing power by raising wages, 
and of placing the industry on a sound basis by providing for the 
elimination of trade abuses. These efforts deserve governmental 
support. 

It is my opinion, however, that maximum hours of labor should in 
most instances be somewhat less than those proposed by the industries 
themselves and that wage rates should begin at a somewhat higher 
minimum. I therefore recommend a uniform work week of 40 hours 
as a maximum in both camps and mills and a minimum wage schedule 
of 23 cents per hour in the South and 4214 cents an hour in the West 
Coast and western pine areas, with properly adjusted gradations of 
rates for other producing regions. 

Other changes in the proposed Code which I regard as important 
have been discussed in earlier paragraphs, and all proposed changes 
from the Code as submitted by the industries are included in the 
attached draft, which I recommend for your approval. 

12. Findings. — The Assistant Administrator finds that: 

(a) The code of the Lumber and timber products industries as 
recommended complies in all respects with the pertinent provisions of 
Title I of the National Industrial Recovery Act, including, without 
limitation, subsection (a) of Section 7 and subsection (b) of Section 
10 thereof ; and 

(b) the National Lumber Manufacturers' Association, which sub- 
mitted the Code, and the forty-five Divisional associations, listed in 
the letter of transmittal, and concurring in the submission, impose 



115 

no inequitable restrictions on membership therein and are truly- 
representative of the hmiber and timber products industries, and 

(c) the Code as recommended is not designed to promote monopolies 
or to eliminate or oppress small enterprises and will not operate to 
discriminate against them, and will tend to effectuate the policy of 
Title I of the National Industrial Recovery Act. 
Respectfully submitted, 

Dudley Gates, 
Assistant Administrator, 



CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRY 



Art. I. Purpose. — This is an undertaking in industrial self-govern- 
ment under such public sanctions as are necessary to carry out in the 
lumber and timber products industries the purposes of the National 
Industrial Recovery Act. It is the declared purpose of the lumber 
and timber products industries and of the adherents to this Code, to 
reduce and relieve unemployment in said industries; to improve the 
standards of labor therein ; to maintain a reasonable balance between 
the production and the consumption of lumber and timber products ; 
to restore the prices thereof to levels which will avoid the further de- 
pletion and destruction of capital assets; and to conserve forest re- 
sources and bring about the sustained production thereof. 

Art. II. De-finitioTis. — (a) " Lumber and Timber products " as used 
herein is defined to include (1) logs, poles and piling; (2) sawn 
lumber and products of planing mills operated in conjunction with 
sawmills; (3) shingles; (4) woodwork (millwork) including prod- 
ucts of planing mills operated in conjunction with retail lumber 
yards; (5) hardwood flooring; (6) veneers; (7) plywood; (8) kiln 
dried hardwood dimension; (9) lath; (10) sawed boxes, shook and 
crates; (11) plywood, veneer and wirebound packages and contain- 
ers; and (12) in respect of any Division or Subdivision additional 
timber products as enumerated in Schedule A. 

(b) " Person " as used herein includes, without limitation, any in- 
dividual, firm, partnership, corporation, association, trust, trustee, or 
receiver subject to the jurisdiction of this Code. 

(c) " Divisions " and " Subdivisions " as used herein refer to the 
several administrative units of the lumber and timber products in- 
dustries which are established and are defined in Schedule A hereof. 
The Divisions and Subdivisions initially established are as follows, 
provided, however, that any Division or Subdivision, as initially 
established herein, or as may be established hereafter, or any sub- 
stantial group in such Division or Subdivision of the industry as 
herein defined, may be exempted from the provision of this Code by 
the President or by the Administrator under the provisions of Arti- 
cle XII of this Code: 

(117) 

29222" 296-57 34 1 



118 

Cypress Division. 
Hardwood Division : 

Appalachian and Southern Hardwood Subdivision. 
Mahogany Subdivision. 
Philippine Mahogany Subdivision. 
Walnut Subdivision. 
Northern Hardwood Subdivision. 
North Central Hardwood Subdivision. 
Northeastern Hardwood Subdivision. 
Northern Hemlock Division. 
Northern Pine Division. 
Redwood Division. 
Northeastern Softwood Division. 
Southern Pine Division : 

Southern Rotary Cut Lumber Subdivision. 
West Coast Logging and Lumber Division : 
Douglas Fir Plywood Subdivision. 
Douglas Fir Door Subdivision. 
Western Pine Division. 
Woodwork Division : 

Stock Manufacturers Subdivision. 
Wholesale Distributors Subdivision. 
Special Woodwork Subdivision. 
Wooden Package Division : 

Sawed Box, Shook, Crate, and Tray Subdivision. 
Plywood Package Subdivision. 
Standard Container Subdivision. 
Pacific Veneer Package Subdivision. 
Egg Case Subdivision. 
Wirebound Package Subdivision. 
Veneer Fruit and Vegetable Package Subdivision. 
Red Cedar Shingle Division : 

Stained Shingle Subdivision. 
Oak Flooring Division. 
Veneer Division. 
Maple Flooring Division. 
Hardwood Dimension Division. 
Art. III. Administration. — (a) The applicant organizations shall, 
with the approval of the President, establish and empower a suitable 
agency named " Lumber Code Authority, Incorporated " hereinafter 
referred to as the Authority to administer this Code in conformity 
with the provisions of the National Industrial Recovery Act under 
the authority of the President. Said agency shall be a body incor- 
porated not for profit. Provision shall be made for membership of 
representatives of the principal divisions of the industries, and pro- 
vision shall also be made for three non- voting members to be appointed 
by and to act as advisory representatives of the President, 

(b) The Authority shall issue and enforce such rules, regulations, 
and interpretations, and impose upon persons subject to the juris- 
diction of this Code such restrictions as may be necessary to effectuate 
the purposes and enforce the provisions of this Code. 

(c) The Authorit}^ is authorized and instructed, with respect to the 
Rules of Fair Trade Practice set forth in Schedule B attached hereto, 
to devise and apply such further requirements or prohibitions, includ- 



119 

ing unfair trade practices, applicable to the industries, which have 
been specifically condemned by the Federal Trade Commission, as 
may conduce to the orderly operation of the lumber and timber 
products industries, not inconsistent with the provisions of the 
National Industrial Recovery Act, and with due consideration of the 
rights of emplo^^ees in said industries and of the consumers of the 
products of said industries. Such requirements or prohibitions, when 
adopted by the Authority, shall be submitted to the President for 
approval and if approved by him shall then be deemed to be supf '.("- 
ments to and amendments of Schedule B of this Code. 

(d) The Authority may establish Divisions and Subdivisions of 
the industries and shall designate appropriate agencies, and the 
governing bodies thereof, for the administration of this Code in each 
Division and Subdivision ; the Authority may delegate to said agencies 
all necessary power and authority for the administration of this Code 
within the Divisions and Subdivisions, including the adoption of 
Division and Subdivision code provisions within the scope of the 
power granted under this Code and not inconsistent with it ; but the 
Authority shall reserve the power and duty to enforce the provisions 
of this Code. The agencies initially so designated and the governing 
bodies thereof are set forth in Schedule A. 

(e) The governing body of the agency of each designated Division 
or Subdivision shall be fairly representative of each group, including 
any substantial minority group within the Division or Subdivision, 
classified by regions, types of manufacture, or other appropriate 
considerations. The Authority shall have the power and duty to 
establish and maintain the representative character of such governing 
body and on the failure of any designated agency to be representative, 
as prescribed herein, the Authority shall, unless the designated agency 
shall comply with such instructions as the Authority may give, 
remove such agency and designate or cause to be designated a 
different agency for such Division or Subdivision. 

(f ) The Authority shall coordinate the administration of this Code 
with such codes, if any, as may affect any division or subdivision of 
the lumber and timber products industries or any related industry, 
with a view to promoting joint and harmonious action upon matters 
of common interest; it shall receive, and, if it shall approve, shall 
present for the approval of the President, any proposals for supple- 
mentary provisions or amendments of this Code or additional codes 
applicable to the lumber and timber products industries or the 
various Divisions and Subdivisions thereof with respect to wages, 
hours, trade practices, or any other matters affecting such industries 
or any Division or Subdivision thereof. Upon approval by the Pres- 
ident, such supplementary provisions or amendments of this Code 
or such additional codes shall thereupon have full force and effect and 
shall be considered as integral parts of this Code. 

(g) The Authority shall admit or cause to be admitted to partici- 
pation in any Division or Subdivision to which he belongs, any 
person on terms of equality with all other persons participating 
therein. 

Art. IV. Code Reports and Fees. — In order that the President may 
be informed of the extent of observance of the provision of this Code 
and of the extent to which the declared policy of the National Indus- 
trial Recovery Act as stated herein is being effectuated in the lumber 



120 

and timber products industries, the Authority shall make such 
reports as the Administrator may require, periodically, or as often as 
he may direct, and each person shall make such sworn or unsworn 
reports to the Authority, periodically, or as often as it may direct, 
on wages, hours of labor, conditions of employment, number of 
employees, production, shipments, sales, stocks, prices, and other 
matters pertinent to the purposes of this Code as the Authority may 
require, and each person subject to the jurisdiction of this Code and 
accepting the benefits of the activities of the Authority hereunder 
shall pay to the Authority his proportionate share of the amounts 
necessary to pay the cost of assembly, analysis, and publication of 
such reports and data, and of the maintenance of the said Authority 
and its activities. Said proportionate share shall be based upon 
value of sales or footage of production, as the Authority may pre- 
scribe for each Division or Subdivision. The Authority may con- 
duct such investigations as are necessary to discharge its duties 
hereunder. 

Art. V. Labor Provisions. — (a) Employees shall have the right to 
organize and bargain collectively through representatives of their own 
choosing, and shall be free from the interference, restraint, or coercion 
of employers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his own 
choosing. 

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

(d) No individual under 18 years of age shall be employed, except 
that boys 16 years and over may be employed in the Wooden Package 
Division and in non-hazardous occupations during school vacations or 
if there are no wage earners of 18 years or over in their families. 

Art. VI. Hours of Labor. — (a) General Provisions and Exceptions: 

(1) No employee shall be permitted to work for two or more employ- 
ers for a longer period in any week than specified herein for a single 
employer. 

(2) Exceptions to the standards in respect to maximum hours of 
labor specified herein are authorized as follows: 

A. Executive, supervisory, traveling sales force, and camp cooks. 

B. Regular employment in excess of such standards, for employees, 
such as watchmen, firemen, and repair crews, where required by the 
nature of their work, for not more than 10 percent of the employees in 
any operation, but time and a half shall be paid for weekly overtime. 

C. Temporary employment in case of emergency. 

D. Seasonal Operations. — Seasonal operations are defined as those 
which on account of elevation or other physical conditions or depend- 
ence upon climatic factors are ordinarily limited to a period of ten 
months or less of the calendar year. 

The administrative agency of a Division or Subdivision may author- 
ize employment in a seasonal operation for a maximum number of 
hours not exceeding 48 hours in any week, with the exception of parts 
of an operation depending on climatic conditions, such as stream 



121 



driving and sled hauling, in which a greater excess may be authorized ; 
provided, that the average employment in any seasonal operation in 
any calendar year shall not exceed the standard schedule. 

E. Manufacturers of wooden packages for perishable fruits and 
vegetables may be authorized by the Administrative Agency of the 
Wooden Package Division to depart from the standard schedule of 
maximum hours applicable to said manufacturers for a period not to 
exceed four weeks for any one crop, when necessary to furnish pack- 
ages for any perishable crop; provided that the average employment 
of any individual in any calendar year shall not exceed the standard 
schedule. 

(b) Subject to the foregoing exceptions, the maximum hoars of 
employment in the respective Divisions and Subdivisions shall be 
40 hours per week. 

Art. VII. Minimum Wages. — (a) General Provisions: 

(1) The minimum compensation for workers employed on piece- 
work or contract basis shall not be less than the minimum wage 
hereunder for the number of hours employed. 

(2) The existing amounts by which minimum wages in the higher 
paid classes, up to workers receiving $30.00 per week exceed minimum 
wages in the lowest paid classes, shall be maintained. 

^ (3) Charges to employees for rent, board, medical attendance, and 
other services shall be fair. 

(b) Subject to the foregoing provisions, the minimum wages which 
shall be paid by persons under the jurisdiction of tliis Code shall not 
be less than 40 cents per hour, unless in any Division or Subdivision 
of the industries the prevailing hourly rate for the same class of em- 
ployees on July 15, 1929, as determined by the Administrator on 
statistical evidence, was less than 40 cents per hour, in wliich case the 
rate shall not be less than said prevailing hourly rate so determined, 
plus fifteen percent if said hourly rate on July 15, 1929, was less than 
30 cents per hour, provided, however, that for wages per hour be- 
tween 20 cents and 29 cents, inclusive, on July 15, 1929, with wages 
of less than 20 cents per hour on that date being considered as 20 
cents, the percentage of increase shall diminish one and one half 
percent for each cent that wages per hour exceeded 20 cents, in 
accordance with the following schedule: 



Wages per 

hour, July 

15, 1929 


Increase under 
proposed 
schedule 


Wages per 

hour under 

proposed 

schedule 


Cents 


Percent 


Centi 


20 


15 


23 


21 


is'A 


24 


22 


12 


24. 5 


23 


lOH 


25.5 


24 


9 


26 


25 


7}i 


27 


26 


6 


27. 5 


27 


4>^ 


28 


28 


3 


29 


29 


1}4 


29. 5 


30 





30 



122 



(c) No minimum rate of wages for any Division or Subdivision 
shall be less than that proposed for such Division or Subdivision by 
the applicant industries in the Code filed July 10, 1933. 

(d) Minimum rates of wages so determined in the respective 
Divisions and Subdivisions shall be as follows: 



Division 



Cents per 
Hour 



C5rpress 24 

Hardwood: 

Appalachian Hardwood 28. 5 

Southern Hardwood 24 

Philippine Mahogany 45 

Northern Hardwood: 

Mills & Factories 30 

Logging 27 

North Central Hardwood: 

Mills & Factories 32. 5 

Logging 32. 5 

North Eastern Hardwood: 

Mills & Factories 30 

Logging 27 

Northern Hemlock: 

Mills & Factories 30 

Logging 27 

Northern Pine: 

Mills & Factories 33. 5 

Logging 28.5 

Redwood 35 

North Eastern Softwood: 

Mills & Factories 30 

Logging 27 

Southern Pine 24 

Southern Rotary Cut 23 

West Coast: 

Logging 42. 5 

Lumber Manufacture 42.5 

Factories 40 

Fir Door 40 

Fir Plywood 40 

Western Pine (Except Arizona, 
New Mexico and Colorado 
South of 38° north latitude): 

Logging 42.5 

Mills 42.5 

Factories 40.0 

Arizona, New Mexico, and Col- 
orado (South of 38° North 

Latitude) 24 

Red Cedar Shingle 42.5 

Stained Shingle 40 



Division 



Cents per 
Hour 



Oak Flooring: 

Appalachian 29. 5 

Southern 26 

Maple Flooring 30 

Hardwood Dimension: 

Southern Hardwood Area.- 24 
Appalachian Hardwood 

Area 28.5 

Northern Hardwood Area.- 30 
Northeastern Hardwood 

Area 30 

North Central Hardwood 

Area 32.5 

Mahogany Subdivision: ' 

Zone'l, New York City & 

Chicago 42. 5 

Zone 2, Northern Cities 35 

Zone 3, Northern Rural 30 

Zone 4, Southern Cities 30 

Zone 5, Southern Rural 25 

Walnut Subdivision: ^ 

Zone 1, New York City & 

Chicago 42. 5 

Zone 2, Northern Cities 35 

Zone 3, Northern Rural 30 

Zone 4, Southern Cities 30 

Zone 5, Southern Rural 25 

Veneer Division: * 

Zone 1, New York City & 

Chicago 42. 5 

Zone 2, Northern Cities 35 

Zone 3, Northern Rural 30 

Zone 4, Southern Cities 30 

Zone 5, Southern Rural 25 

WOODWORK 

Division A — Stock Manufac- 
turers Subdivision: 

Zone 1 10 25 

Zone 2 30 

Zones 32.5 



» Mahogany and Walnut Subdivision and Veneer. Division Zones are as follows: 

New York: Any establishment located within ten miles of the limits of the City of New York. 

Chicago: Any establishment located within ten miles of the limits of the City of Chicago. 

Cities: Communities over 75,000 population, including establishments within ten miles of the city limits. 

Rural: Communities of less than 75,000 population. 

South: Alabama, Arkansas, Florida, Georgia, Louisiana, Missis.sippi, North Carolina, Oklahoma, South 
Carolina, Tennessee, Texas, Virginia. 

North: Balance of the United States. 

'» The Zones and territory under Woodwork are defined as follows: 

Zone #1 includes the states of Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, 
Tennessee, Mississippi, Louisiana, Arkansas, New Mexico, Arizona and Te.xas (13 States). 

Zone #2 includes the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connec- 
ticut, New York, New Jersey, Delaware, District of Columbia, Maryland, West Virginia, Pennsylvania, 
Ohio, Kentucky, Indiana, Michigan, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Kansas, Oklahoma, 
Nebraska, South Dakota and North Dakota (26 states and District of Columbia). 

Zone #"^ includes the states of Oregon, Washington, California, Nevada, Idaho, Utah, Colorado, Wyo- 
ming and Montana, but excepting western Oregon and Washington, which are included in the code of 
the West Coast Lumbermen's Assn. (9 states). 

Metropolitan New York includes the territory within a 30-mile radius of the City Hall on Manhattan 
Island in the City of New York. 

Chicago includes the territory within the bounds of Cook County, Illinois. 



123 



WOODWORK — continued 

Division B — Wholesale Distribu- 
tors Subdivision: 

Zone 1 25 

Zone 2: 

Metro. N.Y. City and 

Chicago 45 

East of Ohio, except 

N.Y. City 35 

Other territory 30 

Zone 3 32.5 



WOODWORK — continued 

Division C — Special Woodwork 
Subdivision: 

Zone 1 25 

Zone 2: 

Metro. N.Y. City and 

Chicago 50 

East of Ohio, except 

N.Y. City 40 

Other territory 30 

Zone 3 ' 32.5 



WOODEN PACKAGE 

Cents per 
DIVISION Hour 

A. Sawed box shook, crate, and tray subdivision: 

a. Eastern Shook and Wooden Box group (Maine, Mass., Vt., 

N.H., Conn., and R.I.) 30 

b. New York, New Jersey Shook group (New York- Metropolitan 

area) 35 

c. Southeastern Box & Shook group (Va., North & South Carolina, 

Ga., Florida, Eastern Tenn., & Eastern Ala.) 23 

d. Southern Hardwood group (Louisiana, Ala., Eastern Texas, 

Arkansas, Southeastern corner Missouri, Southern end of 
Illinois, Western Tennessee & Mississippi) 23 

e. Northwest Shook group (Wis., Minn., N.Dak., S.Dak., Winne- 

bago Co., 111., Northern and Eastern Iowa, Northern Peninsula 

of Mich.) 30 

f. Inland Empire group (Montana, Idaho, Eastern Oregon, 

Eastern and Central Washington) 40 

g. Pacific Wooden Box group (California, Oregon, Utah, Nevada, 

New Mexico, Arizona, and Colorado): 
California, Oregon, Utah, Nevada and Colorado (North of 38° 

North Latitude) 40 

New Mexico, Arizona & Colorado (Provisional) (South of 38° 

North Latitude) 23 

h. Pacific Northwest Wooden Box group (Western Washington 

and Western Oregon and Alaska) 40 

i. Northern Box and Shook group (New York, excluding Metro- 
politan N.Y., New Jersey, excluding Metropolitan N.J., 
Delaware, Penna., Ohio, Ind., Southern Peninsula of Mich., 
Illinois except Winnebago Co. and extreme south at mouth of 
Ohio river, Missouri except Southeast corner, Kansas, 

Nebraska, Southern and Western Iowa) 30 

j. Southern Box and Shook group: (Maryland, W.Va., and 
Southern Pine and Softwood section of Tenn., western Ala- 
bama, La., Arkansas, Texas, and Oklahoma) 23 

B. Plywood Package Subdivision: 

(South of Delaware River, the Southern line of Pennsylvania, the 
Ohio River and the Southern line of Missouri, Kansas, Colorado, 
and the Colorado River) 23 

North of above line 30 

C. Southeastern Veneer Container Subdivision: (Florida, Georgia, Ala- 

bama) 23 

D. Pacific Veneer Container Subdivision: (California, Oregon, Washing- 

ton) 40 

E. Egg Case Subdivision: 

(Florida, Georgia, So. Carolina, No. Carolina, Virginia, Alabama, 
Tennessee, Mississippi, Louisiana, Texas, Maryland, W. Vir- 
ginia, Kentucky, Oklahoma, Arkansas, Southeastern Mo., and 
Ohio River points) 23 

All other territory 30 



124 

WOODEN PACKAGE — Continued 
DIVISION Cents per Hour 

F. Wirebound Box Subdivision: 

(Florida, Georgia, South Carolina, North Carolina, Virginia, Ala- 
bama, Tenn., Miss., La., New Mexico, Ariz., Texas, Maryland, 
W.Va., Ky., Okla., Arkansas, and Ohio River points) 23 

All other territory 30 

G. Veneer Fruit and Vegetable Package Subdivision: 

Southern Group: (North Carolina, South Carolina, Kentucky, 
Tennessee, Mississippi, Louisiana, Alabama, Texas, Arkansas, 
Georgia, Florida, Virginia, and nine counties Eastern Shore of 
Maryland and Delaware) 23 

Northern Group: New York, New Jersey, Midwest, and Michigan 
groups 30 

In the Wooden Package Division minimum wage rates below those 
shown in the schedule shall be permitted in the case of boys and girls 
less than 20 years of age, provided that not more than 20 percent of 
the total number of employees of any one plant shall be so classified; 
and provided further that the differential shall not exceed 3 cents if 
the rate after subtracting the differential is 27 cents or less, but in 
no case shall the differential exceed 5 cents. 

Art. VIII. Control of Production. — (a) To effectuate the declared 
purposes of this Code in respect of maintaining a reasonable balance 
between the production and the consumption of lumber and timber 
products and to assure adequate supplies thereof, the Authority 
shall determine, and from time to time revise, not less frequently 
than each three months, estimates of expected consumption, includ- 
ing exports, of lumber and timber products of each Division and Sub- 
division; and based thereon it is empowered to establish, and from 
time to time revise, production quotas for any Division or Subdivision 
of the lumber and timber products industries. Allotments within 
each Division and Subdivision, for the persons therein, shall be made, 
subject to the supervision of the Authority, by the agencies designated 
by it. Said quotas as between such Divisions or wSubdivisions shall 
be in proportion to the shipments of the products of each during a 
representative recent past period to be determined by the Authority; 
but the Authority may modify said proportions if warranted by evi- 
dence. In case of Divisions or Subdivisions, the raw material of 
which is imported, the quotas and allotments may be in terms of 
imports, so far as may be consistent ^\dth the provisions of Section 
7 (a) of the National Industrial Recovery Act. 

(b) Each person in operation shall be entitled to an allotment. 
Each person known to any Division or Subdivision agency to be in 
operation shall be registered by such agency immediately and shall be 
assigned an allotment. The agency shall also immediately give pubhc 
notice reasonably adapted to reach all persons operating or desiring 
to operate, stating the date on wliich the allotments will be determined; 
and any person desiring to operate who shall give the agency written 
notice of such desire ten days before the allotment date, supported 
by acceptable evidence of ability to operate, shall be registered by 
the agency and assigned an allotment. Any person so registered shall 
be deemed an "eligible person" for the purposes of this Article. 

(c) The allotment for each eligible person shall be determined 
from time to time for a specified period not exceeding three (3) 



125 

months and, except as may be permitted under the provisions of 
section (d) hereof, shall be as follows: 

(1) That proportion of a specified percentage, determined as pro- 
vided in sections (d) and (e) of this Article, of the Division or Subdi- 
vision quota which his greatest average hourly production in the 
hours operated during any three calendar years since December 31, 
1924, is of the aggregate of such hourly production of all eligible per- 
sons within the Division or Subdivision. 

(2) That proportion of a specified percentage, determined as pro- 
vided in sections (d) and (e) of this Article, of the Division or Subdi- 
vision quota which his greatest average yearly production for any 
three calendar years since December 31, 1924, is of the aggregate of 
such yearly production of all eligible persons within the Division or 
Subdivision. 

(3) That proportion of a specified percentage, determined as pro- 
vided in sections (d) and (e) of this Article, of the Division or Subdi- 
vision quota which the greatest average nimiber of his employees 
during any three calendar years since December 31, 1924, is of the 
aggregate of such number of employees of all eligible persons within 
the Division or Subdivision. 

(4) That proportion of not to exceed ten (10) percent of the Divi- 
sion or Subdivision quota which the amount of taxes paid by him, 
except Federal taxes, taxes on ore, coal, petroleum, ships, retail 
yards, and timber not set apart for the operation, during the next 
preceding calendar year is of the total amount of such taxes paid by 
all eligible persons within the Division or Subdivision. 

(5) That proportion of not to exceed fifteen (15) percent of the Divi- 
sion or Subdivision quota which the quantity of reserve sta^nding 
timber allocated to his operations within said Division or Subdivi- 
sion, and at the time the allotment is made, owned by him in fee or 
under contract is of the total quantity of such reserve standing tim- 
ber owned in fee or under contract by all eligible persons within the 
Division or Subdivision. 

(d) (1) Exceptions to or changes in any allotment thus established 
shall be made only for special, accidental, or extraordinary circum- 
stances, or, in any Division or Subdivision, for other factors peculiar 
to a limited group of operations. Exception may be made only on 
application to the designated Division or Subdivision agency by an 
eligible person who must submit evidence in support of his applica- 
tion, and the exception may be granted only upon a published finding 
and statement of reasons therefor. 

(2) A person conducting seasonal operations as defined in Article 
VI (a) (2) (D) hereof shall be entitled, on application to his Division 
or Subdivision agency, to produce during his period of operation not 
only amounts allotted to him during his period of operation but also 
amounts allotted to him under section (c) hereof since the termination 
of his previous operating period. 

(3) In the case of any person (a) who produced during less than 
three calendar years since December 31, 1924, and before December 
31, 1930, or (b) who is entitled to an allotment for operation of new, 
additional, or restored facilities, which were not in operation for such 
three calendar years, or (c) for whom for any other reason such three 
calendar years are not reasonably representative of his present circum- 
stances, his average hourly production, his average yearly production, 



126 

and his average number of employees shall be determined by the 
Division or Subdivision agency on an equivalent basis by comparison 
with substantially equal facilities already established and in like 
regions or conditions. 

(4) On application of a Division or Subdivision, the Authority 
may authorize the allotment of production therein on any one or 
more of the bases provided in subsections (1), (2), and (3) of section 
(c) hereof in such relative proportions as the Authority may approve; 
and including or not the bases, or either of them, provided in sub- 
sections (4) and (5) of said section (c). 

(e) In the absence of an approved application from any Division or 
Subdivision for the assignment of allotments under the provisions of 
subsection (4) of section (d) hereof, the Authority may direct that 
allotments within said Division or Subdivision be assigned in accord- 
ance with the provisions of section (c) in the following relative 
proportions: 

Subsection (1), hourly production, 40 percent; 

Subsection (2), yearly production, 30 percent; 

Subsection (3), number of employees, 15 percent; 

Subsection (4), taxes paid, 5 percent; 

Subsection (5), standing timber, 10 percent; 
unless the Division or Subdivision shall elect to accept the average 
relative proportions of the Divisions or Subdivisions whose allotments 
have been theretofore approved. 

(f ) The basis for determination of Division and Subdivision quotas 
and of individual allotments and any revisions thereof, all quotas, all 
allotments, and all appeals therefrom and all decisions on appeals 
shall be published. 

(g) Allotments from two or more Divisions or Subdivisions to the 
same person shall be separate and distinct and shall not be inter- 
changeable. Allotments shall not be cumulative except as authorized 
in specific cases under section (d) (1) of this Article, or in cases of 
seasonal operations of a Division or Subdivision under section (d) 
(2) of this Article, and shall not be transferable except as between 
operations under the same ownership within the same Division or 
Subdivision. 

(h) Whenever in the case of any eligible person it shall be necessary, 
in order to accept and execute orders for export, to have an addition 
to his regular allotment, provision for such necessary excess shall be 
made by the Division or Subdivision agency, provided that any excess 
above his allotment shall be deducted from his subsequent allotment 
or allotments. 

(i) The Authority may modify, or cause to be modified, production 
quotas and allotments determined hereunder, and the bases therefor, 
in such manner and to such extent as may be necessary to effectuate 
the provisions of the Code in respect of the conservation and sustained 
production of forest resources. Such modification shall not be made 
effective prior to the next succeeding allotment date. 

(j) The basis of allotments as provided in sections (c), (d), and (e) 
hereof is tentative and is subject to revision. When in the judgment 
of the Authority revision of the bases of allotments is desirable, 
whether by changing the proportions of the factors in determining 
allotments enumerated in Section (c), subsections 1, 2, 3, 4, and 5, of 
this Article, in accordance with the procedure estabhshed in sections 



127 

(d) and (e) hereof, or by the addition of other factors, consideration 
shall be given to the inclusion of practicable and equitable measures, 
subject to the approval of the President, for increasing allotments of 
persons whose costs are below the weighted average defined in section 
(a) of Article IX. 

(k) The Authority, as promptly as practicable after its action pur- 
suant to Art. X hereof, shall submit for the approval of the President 
appropriate changes in the bases of allotments. 

(1) Except as otherwise provided in section (h) of this Article, no 
person shall produce or manufacture lumber or timber products in 
excess of his allotment. If any person shall exceed his allotment the 
Division or Subdivision agency shall diminish the subsequent allot- 
ment or allotments of the offender in an amount equal to such excess. 

(m) The Authority shall issue interpretations and shall promulgate 
rules and regulations necessary for the enforcement of this Article, to 
prevent evasion and secure equitable application thereof, and assign 
quotas to each Division and Subdivision which shall become effective 
on the dates specified by the Authority. Each Division and Subdivi- 
sion shall assign allotments to all eligible persons effective on the dates 
specified by the Authority. 

Interim Article. — Pending the effective date of placing Article VIII 
or any part thereof in execution in any Division or Subdivision, the 
Authority may authorize the designated agency of such Division or 
Subdivision to assign to eligible persons production allotments in 
hours of allowable operation. 

Art. IX. Cost Protection. — (a) Whenever and so long as the 
Authority determines that it will contribute toward accomplishment 
of the declared purposes of the Code, and whenever it is satisfied 
that it is able to determine cost of production as defined in tliis 
section (a), the Authority is authorized to establish and from time 
to time revise minimum prices f.o.b. mill, to protect the cost of pro- 
duction of items or classifications of lumber and timber products. 
Such minimum prices shall be established with due regard to the 
maintenance of free competition among species, Divisions, and Sub- 
divisions, and with the products of other industries and other coun- 
tries, and to the encouragement of the use of said products ; and except 
for export sales shall be not more than cost of production, determined 
as provided in this section (a), nor less than such cost of production 
after deducting the capital charges specified in items 11 and 12 (b) 
of this section (a). 

The current weighted average cost of production of persons in 
operation in a Division or Subdivision, or w^here necessary in a group 
of persons within a Division or Subdivision, as defined by the Author- 
ity, shall be established by uniform accounting practices, and shall 
include — 

1. Wages. 

2. Materials and supplies. 

3. Overhead and administration, including trade-association dues 
and Code fees. 

4. Shipping, including grading and loading. 

5. Selling, not including advertising or trade promotion. 

6. Maintenance. 

7. Insurance, including compensation and employee insurance, but 
not including insurance on standing timber. 



128 

8. Taxes, including taxes on timber tributary to and allocated to 
an existing mill or logging operation, not to exceed a twelve-year 
supply therefor. 

9. Interest paid on indebtedness representing plant, facilities, and 
working capital necessary for mills actually operating or capable of 
operating, including mills, equipment, logging facilities, docks, in- 
ventory, accounts receivable, and timber tributary to and allocated 
to any existing mill or logging operation, not to exceed a twelve-year 
supply therefor. 

10. Discounts, claims paid, and losses on trade accounts. 

11. Depreciation: On straight-line method, and based on the fair 
value or the cost, whichever is lower, on operating mills and on mill 
and logging equipment, including mills and equipment capable of 
operation, plus amortization of investments in logging railroads, 
docks, and other logging and plant facilities. 

12. Raw material: (a) Logs, flitches, lumber, and other partially 
manufactured material purchased, at actual cost, and standing timber 
cut under contract of purchase, at actual cost. 

(b) Standing timber carried in capital account, cut for operations, 
at fair current value to be determined by the Administrator, without 
regard to greater original cost, higher book value, or accumulated 
carrying charges. 

13. Conservation and Reforestation: (a) Costs of protection of 
timbered and cut-over lands, including fire protection and slash 
disposal, and protection from insects and disease. 

Additional costs when incurred under instructions from the 
Authority, in such an amount as is warranted by market conditions, 
to be specifically devoted to timber conservation and reforestation in 
accordance with regulations prescribed by the Authority, up to the 
amount estimated by the Authority to be necessary to reproduce the 
equivalent of the timber converted. 

(b) Until such time as the Authority shall have formulated and 
secured the general application by the several Divisions and Sub- 
divisions of methods of accounting by which item 11 of section (a) 
hereof may be accurately ascertained, said item may not be included 
in the determination of cost of production for the purposes of this 
Article. 

(c) Cost of production for each species, determined as provided in 
section (a), including or not including as the case may be, or in whole 
or in part, capital charges for stumpage and depreciation, shall be 
allocated by the Authority to the several items or classifications of 
lumber or other products thereof for which minimum prices are estab- 
lished, in proportion to their relative market prices over a representa- 
tive period. Such allocation may be changed by the Authority from 
time to time as may be found necessary to avoid shortages or excessive 
accumulations, within any Division or Subdivision of particular 
items or classifications of lumber and timber products; but the 
weighted average minimum price of all items and classifications for 
each species shall not be more than cost of production as determined 
in section (a) nor less than said cost after deducting the capital charges 
specified in items 11 and 12 (b) of said section (a). 

(d) In determining minimum prices for any Division or Subdivision 
the Authority shall establish equitable price differentials for products 



129 

below accepted standards of quality, as prescribed by the authority, 
such as the products of some small mills. 

(e) No person shall sell or offer for sale lumber or timber products 
upon which minimum prices have been established at prices less than 
those so established. No person shall sell or offer for sale lumber or 
timber products to wholesale or other distributors who have been 
found by the Administrator to have violated any of the provisions of 
the Rules of Fair Trade Practice incorporated in this Code as Sched- 
ule B, except upon such terms and conditions as the Administrator in 
accordance with law shall prescribe. 

(f) No person shall sell or offer for sale non-standard grades, sizes, 
dimensions, or classifications of lumber or timber products for the 
purpose of evading the provisions of this Article. 

(g) In the case of imported lumber and timber products, minimum 
prices for domestic sale shall be determined by the Authority, and 
such minimum prices shall be equivalent to the minimum prices 
determined and approved for the same or similar or competing items, 
grades, sizes, and species of lumber and timber products of domestic 
production. 

(h) The Authority shall secure current information concerning the 
competition in domestic markets of imported lumber and timber 
products, and if it shall find that such products are being imported 
mto the United States in substantial quantities or increasing ratio 
to domestic production and on such terms or under such conditions 
as to render ineffective or seriously to endanger the maintenance of 
this Code, it shall complain to the President pursuant to the provi- 
sions of Section 3 (e) of the National Industrial Recovery Act and 
petition for suitable restrictions on the importation of such lumber 
and timber products. 

(i) The Authority shall issue interpretations and shall promulgate 
rules and regulations necessary for the enforcement of this Article, 
to prevent evasion and secure equal application thereof. 

(j) Minimum prices established in accordance with the provisions 
of this Article shall become effective ten (10) days after publication 
thereof by the Authority. 

Art. X. Conservation and Sustained Production of Forest Resources. — 
The applicant industries undertake, in cooperation with public and 
other agencies, to carry out such practicable measures as may be 
necessary for the declared purposes of this Code in respect of conser- 
vation and sustained production of forest resources. The applicant 
industries shall forthwith request a conference with the Secretary of 
Agriculture and such State and other public and other agencies as 
he may designate. Said conference shall be requested to make to 
the Secretary of Agriculture recommendations of public measures 
with the request that he transmit them, with his recommendations, 
to the President; and to make recommendations for industrial action 
to the Authority, which shall promptly take such action, and shall 
submit to the President such supplements to this Code, as it deter- 
mines to be necessary and feasible to give effect to said declared 
purposes. Such supplements shall provide for the initiation and 
administration of said measures necessary for the conservation and 
sustained production of forest resources, by the industries within 
each Division, in cooperation with the appropriate State and Federal 
authorities. To the extent that said conference may determine that 



ISO 

said measures require the cooperation of federal, state, or other pubHc 
agencies, said measures may to that extent be made contingent upon 
such cooperation of pubHc agencies. 

Art. XI. Special Agreements. — Voluntary agreements, or proposed 
voluntary agreements, between and among persons engaged in the 
logging of timber or the production and distribution of lumber and 
timber products, or between and among organizations or groups in 
the lumber and timber products industries, or in which such persons, 
organizations, or groups purpose to participate, proposed to be sub- 
mitted to the President for approval under Sec. 4 (a) of the National 
Industrial Recovery Act, shall not be in conflict with the provisions 
of this Code or with any approved rule issued thereunder. Such 
agreements or proposed agreements shall be submitted to the Au- 
thority and if not disapproved by it within thirty days as being in 
conflict with the provisions of this Code, they may thereafter be sub- 
mitted to the President for approval; but no person engaged in the 
production and distribution of lumber and timber products shall par- 
ticipate in any such agreement which has been determined by the 
Authority to be in conflict with the provisions of this Code. 

Art. XII. Cancellation or Modification. — (a) The President may 
from time to time cancel or modify any order, approval, license, rule, 
or regulation issued under Title I of the National Industrial Recovery 
Act in respect of this Code. 

(b) Any decision, rule, regulation, order, or finding made or course 
of action followed pursuant to the provisions of this Code, may be 
cancelled or modified by the Administrator whenever he shall deter- 
mine such action necessary to effectuate the provisions of Title I of 
the National Industrial Recovery Act. 

Art. XIII. Monopolies. — (a) This Code shall not be construed, in- 
terpreted, or applied so as to promote or permit monopolies or mo- 
nopohstic practices, and shall not be availed of for that purpose. 

(b) The provisions of this Code shall not be so interpreted or ad- 
ministered as to eliminate or to oppress or to discriminate against 
small enterprises. 

Art. XIV. Diiri.sion and Subdivision Code Provisions. — Code pro- 
visions affecting or pertaining to Divisions and Subdivisions of the 
lumber and timber products industries are contained in Schedule "A" 
attached hereto, which is specifically made a part of this Code, in 
so far as they relate to description of the respective Divisions and 
Subdivisions, identification of persons and products subject to their 
jurisdiction, and designation of administrative agencies. Additional 
Code provisions affecting or pertaining to Divisions and Subdivisions 
may be filed Avith the Authority and if not inconsistent with the 
provisions of this Code may be recommended by it to the President. 
"When approved by the President such provisions shall have the same 
force and effect as any other provisions of this Code. 

Art. XV. Violations. — Violation by any person of any provision of 
this Code or of any rule or regulation issued thereunder and approved 
by the President, or of any agreement entered into by him with the 
Authority so observe and conform to this Code and said rules and 
regulations or by any importer of any agreement entered into by him 
with the said Authority for the restriction of importation of lumber 
and timber products, or any false statement or report made to the 
President or to the Authority or to the governing body or agency of 



131 

any designated Division or Subdivision, after decision by the Admini- 
strator thereon pursuant to Article XVII of this Code or otherwise, 
shall constitute an unfair method of competition, and the offender 
shall be subject to the penalties imposed by the National Industrial 
Recovery Act. 

Art. XVI. Rules oj Fair Trade Practice. — (a) The Rules of Fair 
Trade Practice for the Lumber and Timber Products Industries, as 
set forth in Schedule "B" attached hereto, are specifically made a 
part of this Code. The Authority shall make such additions to or 
exceptions from said Rules, as the agencies of the respective Divisions 
or Subdivisions may request, applicable in the respective Divisions 
and Subdivisions, provided the Authority finds said additions and 
exceptions are not unfair to persons in other Divisions or Subdivisions 
or their employees, or to consumers, and not inconsistent with the 
other provisions of this Code, or with the National Industrial Recovery 
Act. Upon approval of such additions and exceptions by the 
Administrator said rules shall take precedence in the respective Divi- 
sions and Subdivisions in respect of the subject matter of said addi- 
tions and exceptions, and shall be effective concurrently with the Rules 
so added or excepted to. 

(b) The applicant industries undertake to adopt, apply, and enforce 
branding or marking or marldng of lumber and timber products. 
Subject to section (c) hereof, all timbers, all seasoned lumber except 
factory and shop lumber, all flooring and all shingles and lath shipped 
to markets within the United States, not including export shipments, 
shall be branded by the manufacturer or producer thereof or by his 
agent in such manner as will indicate (1) its species, except as other- 
wise determined by the Authority; (2) its grade; (3) whether it is of 
standard or substandard dimensions; (4) whether it is seasoned or 
unseasoned. All shipments except export shipments, by rail or 
water of timber, lumber, flooring, shingles, and lath shall be accom- 
panied by a certificate of the originating shipper showing the quantity 
and grade thereof. 

(c) The Authority shall submit to the President, not later than 
January 1, 1934, provisions, including proposed rules and regula- 
tions, necessary to effectuate the requirements of this Article and to 
establish other desirable certification of products, to prevent evasion 
and to secure equitable application thereof; and the said provisions 
when approved shall be a part of this Code, or of the Rules of Fair 
Trade Practice, and shall be effective not more than thirty (30) days 
thereafter. 

Art. XVII. Appeals. — (a) Any interested party shall have the 
right of complaint to the designated agency of any Division or Sub- 
division and of prompt hearing and decision thereon in respect of 
any decision, rule, regulation, order, or finding made by such agency. 
Such complaint must be filed in writing with the said agency within 
a reasonable period of time after said decision, rule, regulation, order, 
or finding is issued. The decision of said agency may be appealed by 
any interested party to the Authority. 

(b) Any interested party shall have the right of complaint to the 
Authority and of prompt hearing and decision thereon, under such 
rules and regulations as it shall prescribe, in respect of any decision, 
rule, regulation, order, or finding made by the Authority. 



132 

(c) Any interested party shall have the right of appeal to the 
Administrator of the National Industrial Recovery Act, under such 
rules and regulations as he shall prescribe, in respect of any decision, 
rule regulation, order or finding made by the Authority. 

Art. XVIII. Jurisdiction. — This Code, when approved by the 
President, shall apply to all persons engaged in the lumber and timber 
products industries as defined herein. 

Art. XIX. Elective Date and Termination. — (a) The provisions of 
this Code in respect of maximum hours and minimum wages shall be 
in effect beginning three days after its approval by the President; and 
other provisions of the Code, unless specifically provided otherwise, 
ten days after approval by the President; Schedule B shall be in effect 
at such date as may be specified by the Authority; but not later than 
November 1, 1933.^ 

(b) This Code shall terminate on June 16, 1935, or on such earlier 
date as the National Industrial Recovery Act may cease to be effective. 

(c) This Code shall continue in effect for a period of six (6) months 
after the date of approval thereof by the President in order to afford 
to the President an opportunity to determine upon the recommenda- 
tions of his representatives on the Authority, which recommendations 
shall be made periodically or as often as the said representatives deem 
necessary or advisable but in any event not later than six months after 
the date of approval of this Code by the President, whether its pro- 
visions will effectuate the purposes of Title I of the National Industrial 
Recovery Act, subject, however, to amendment at any time, as here- 
inbefore provided, and subject also to the reserved power of the 
President to cancel or modify his approval thereof. This Code shall 
continue in effect after the expiration of said period of six (6) months 
in the absence of the exercise of such reserved right on the part of the 
President. 

Approved Code No. 9. 
Registry No. 313/1/06. 



133 



SCHEDULE A 

DIVISION AND SUBDIVISION CODE PROVISIONS 

(Parenthetical references in these Provisions refer to Articles of the Code) 

1. Cypress Division. 

2. Hardwood Division. 

3. Appalachian and Southern Hardwood Subdivision. 

4. Mahogany Subdivision. 

5. Philippine Mahogany Subdivision. 

6. Walnut Subdivision. 

7. Northern Hardwood Subdivision. 

8. North Central Hardwood Subdivision. 

9. Northeastern Hardwood Subdivision. 

10. Northern Hemlock Division. 

11. Northern Pine Division. 

12. Redwood Division. 

13. Northeastern Softwood Division. 

14. Southern Pine Division: 

15. Southern Rotary Cut Lumber Subdivision. 

16. West Coast Logging and Lumber Division: 

17. Douglas Fir Plywood Subdivision. 

18. Douglas Fir Door Subdivision. 

19. Western Pine Division. 

20. Woodwork Division: 

21. Stock Manufacturers Subdivision. 

22. Wholesale Distributors Subdivision. 

23. Special Woodwork Subdivision. 

24. Wooden Package Division. 

25. Sawed Box, Shook, Crate, and Tray Subdivision. 

26. Plywood Package Subdivision. 

27. Standard Container Subdivision. 

28. Pacific Veneer Package Subdivision. 

29. Egg Case Subdivision. 

30. Wirebound Box Subdivision. 

30a. Veneer Fruit and Vegetable Package Subdivision. 

31. Red Cedar Shingle Division: 

32. Stained Shingle Subdivision. 

33. Oak Flooring Division. 

34. Veneer Division. 

35. Maple, Beech, and Birch Flooring Division. 

36. Hardwood Dimension Division. 

1. Cypress Division 

Division (Art. II c). — The Cypress Division consists of producers and manu- 
facturers of lumber and timber products of Tidewater Red Cypress in the states 
of Florida, Georgia, Louisiana, and South Carolina, but does not include white 
and yellow cypress or the small amount of red cypress produced by hardwood 
mills. 

Products (Art. II a). — Lumber and Timber products under the jurisdiction of 
this Division include all Tidewater Red Cypress logs, poles, and piling; sawn 
lumber; planing mill products, except those of planing mills operated in con- 
junction with retail lumber yards; shingles, flooring, veneers; plywood; lath; 
boxes and crates. 

Administrative Agency (Art. III).- — The Southern Cypress Manufacturers' 
Association is designated as the agency of the Authority for the administration 
of the Code in this Division. Said Association, through its Board of Directors, 
is authorized to make rules and regulations necessary to administer the Code in 
this Division, and shall designate and authorize such agencies as may be required 
for this purpose. 



134 

2. Hardwood Division 

Division (Art. II c). — (a) The Hardwood Division consists of producers, man- 
ufacturers, importers, and distributors of hardwood lumber and timber products, 
in the following Subdivisions: 
Walnut Subdivision. 

Southern and Appalachian Hardwood Subdivision. 
North Central Hardwood Subdivision. 
Mahogany Subdivision. 
Northeastern Hardwood Subdivision. 
Northern Hardwood Subdivision. 
Philippine Mahogany Subdivision. 
(6) Jurisdiction shall also extend to wholesalers, exporters, and distributors of 
such hardwood products to the extent provided for in the Code, in this or any 
Subdivision code provisions, and in the rules of fair trade practice appended in 
Schedule B. 

(c) The territory and person subject to the jurisdiction of the seven Subdivisions 
shall be defined by the Hardwood Coordinating Committee hereinafter designated. 
Other Subdivisions may be established upon application to the Authority through 
the Hardwood Coordinating Committee. 

Products (Art. II a). — Hardwood logs, sawn ties, timber and lumber, lath, 
dimension cut from the log, and products of planing mills operated in conjunctiore 
with sawmills; and in respect of any Subdivision such additional hardwood timbeiy 
products as it may enumerate. i 

Administrative Agencies (Art. III). — (a) The Administrative Agencies in the 
respective Subdivisions shall be as follows: 

Walnut Subdivision, American Walnut Manufacturers Association. 
Southern and Appalachian Hardwood Subdivision, Hardwood Manu- 
facturers Institute. 
North Central Hardwood Subdivision, Indiana Hardwood Lumbermen's 

Association. 
Mahogany Subdivision, Mahogany Association. 
Northeastern Hardwood Subdivision, Northeastern Lumber Manufac-' 

tures Assn. 
Northern Hardwood Subdivision, Northern Hemlock & Hardwood Manu-: 

facturers Association. 
Philippine Mahogany Subdivision, Phillippine Mahogany Manufacturers' 
Import Association. 

(b) The Hardwood Coordinating Committee, established by the above admin-; 
istrative agencies in conjunction with the National- American Wholesale Lumber. 
Association, the National Hardwood Lumber Association, and the National; 
Lumber Exporters Association, is designated as the agency of the Authority for' 
the administration of the Code in this Division, through and by means of thjs; 
administrative agency herein designated for each Subdivision. 

(c) Said Committee shall issue and enforce such rules, regulations, and inter-; 
pretations, including trade practices, impose upon persons subject to the juris-; 
diction of this Division such restrictions and designate such agents and delegate: 
such authority to them as may be deemed necessary; but shall reserve the power, 
and duty to enforce the provisions of the Code in this Division. The Committee 
may delegate any of its authority to its representatives, selected from its member- 
ship, or the membership of the Authority, who are hereby empowered to act for 
the Division conclusively in respect of all matters coming before the Authority. 
Such representatives shall constitute the Hardwood Executive Committee. AH' 
matters of interest to the Division or any Subdivision requiring action by the' 
Authority shall first be presented to the Hardwood Executive Committee. 

(d) Each Subdivision shall, under authority of the Hardwood Coordinating' 
Committee, select its own administrative agencies. Each Subdivision shall be 
independent and self-governing in respect of all conditions and problems relating 
to the said Subdivision exclusively. Proposals in respect of matters affecting 
more than one Subdivision may be initiated by any Subdivision and shall be 
submitted to the Hardwood Coordinating Committee. 

3. Appalachian and Southern Hardwood Subdivision 

Subdivision (Art. II c): This Subdivision consists of producers and manufac- 
turers of hardwood lumber and timber products, but including Appalachian 
hemlock, white pine and spruce, also white and yellow cypress and Southern 
red cedar, within the following States: Texas, Louisiana, Mississippi, Alabama,' 



135 

Arkansas, Missouri, Oklahoma, Florida, Georgia, Tennessee, Kentucky, South 
Carolina, North Carolina, Virginia, West Virginia, and Maryland. 

The Appalachian Territory is defined as that part of the Appalachian and 
Southern Hardwood Subdivision within the lines defined as follows: Starting at 
Cincinnati, Ohio, following main line Louisville and Nashville Railroad through 
Louisville, Kentucky, and Nashville, Tennessee, to Tennessee-Alabama state 
line, marking the western boundary of the Appalachian territory; thence east on 
Tennessee- Alabama state line to Georgia state line; thence south on Alabama- 
Georgia state line to thirty-fourth parallel; thence east on thirty-fourth parallel 
in Georgia to main line Southern Railway, Atlanta to Washington route; and 
thence northeast following Southern Railway from this point through South 
Carolina, North Carolina, Virginia, and Maryland to Pennsylvania state line. 
All points on boundary lines are in southern territory. 

Products (Art. Ila): All lumber and timber products enumerated except: 
poles and piling; products of planing mills not operated in conjunction with 
sawmills; hardwood flooring; veneers; plywood. 

Administrative Agency (Art. Ill) : The Hardwood Manufacturers Institute is 
designated as the agency of the Authority and the Hardwood Coordinating 
Committee for the administration of the Code in this Subdivision. Said Insti- 
tute, through its Board of Directors, is authorized to make rules and regulations 
necessary to administer the Code in this Subdivision and to designate and 
authorize such further agencies as may be required for this purpose. 

4. Mahogany Subdivision 

Subdivision (Art. II c): 

The Mahogany Subdivision includes all manufacturers importers, and distrib- 
utors, including principals, brokers and agents, of mahogany and foreign woods 
as hereinafter defined. 

Species and Products (Art. II a): (a) All species of Mahogany (except woods 
from the Philippine Islands sold under the trade name "Philippine Mahogany"), 
Spanish Cedar, Teak, Ebony, Rosewood, Satinwood, Box Wood, Cocabola, 
Lignum-vitase, wood from Australia sold under the trade name "Oriental Wood, " 
European Brown and Pollard Oak, all other tropical hardwoods (except from the 
Philippine Islands) and all other foreign hardwoods customarily described as 
"fine," "fancy," or "of value." Ordinarily European and Canadian commercial 
hardwoods are excepted. 

(b) Jurisdiction over the woods specified and described shall apply to logs, 
hewn or sawn timbers, billets, flitches, dimension stock, and lumber. Veneers 
(below Yie" thick) are excluded, except cigar box lumber %" or thicker of Spanish 
Cedar and other tropical woods. Subject to the provisions hereof under "Control 
of Production," all logs, including those intended solely for the manufacture of 
veneers or plywood and/or so used, shall be under the jurisdiction of this Sub- 
division, in order that due control may be exercised over lumber production in the 
event of the diversion of veneer logs to that purpose. 

Administrative Agency (Art. Ill): The Mahogany Association, Inc., acting 
through the Mahogany Coordinating Committee as its Board of Directors, is 
hereby designated as the agency of the Authority and of the Hardwood Coordi- 
nating Committee for the admmistration of the Code in this Subdivision. 

5. Philippine Mahogany- — Subdivision 

Subdivision (Art. II c). — The Philippine Mahogany Subdivision in the United 
States consists of manufacturers of lumber and timber products of Philippine 
Mahogany and other Philippine hardwoods, persons exclusively representing in 
the United States manufacturers of such lumber and timber products in the 
Philippine Islands and all importers of such lumber and timber products. 

Products (Art. II a). — Logs, lumber, and timber products of aU species of hard- 
woods produced in the Philippine Islands. 

Administrative Agency (Art. III). — The Philippine Mahogany Manufacturers 
Import Association is designated as the agency of the Authority and the Hardwood 
Coordinating Committee for the administration of the Code in this Subdivision. 
Said Association, through its Executive Committee, is authorized to make rules 
and regulations necessary to administer the Code in this Subdivision. 

6. Walnut Subdivision 

Subdivision (Art. II c). — The Walnut Subdivision consists of producers, manu- 
facturers, and importers of walnut throughout the United States. 



136 

Products (Art. II a). — All walnut lumber, logs, burls, crotches, and sawmill 
products regardless of the variety of walnut, except walnut veneers. 

Administrative Agency (Art. III). — The American Walnut Manufacturers 
Association is designated as the agency of the Authority and the Hardwood 
Coordinating Committee for the administration of the Code in this Subdivision. 
Said Association, through its Executive Committee, is authorized to make rules 
and regulations necessary to administer the Code in this Subdivision, and shall 
designate and authorize such agencies as may be required for this purpose. 

7. Northern Hardwood Subdivision 

Subdivision (Art. lie). — The Northern Hardwood Subdivision consists of pro- 
ducers and manufacturers of lumber and timber products of birch, maple, ash, 
elm, basswood, oak, beech, and other indigenous and related species in Michigan, 
Wisconsin, and Minnesota. 

Products (Art. II a).— All lumber and timber products enumerated except poles 
and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-dried hard- 
wood dimension. 

Administrative Agency (Art. III). — The Northern Hemlock and Hardwood 
Manufacturers Association is designated as the agency of the Authority and of 
the Hardwood Coordinating Committee for the administration of the Code in 
this Subdivision. Said Association, through its Board of Directors, is authorized 
to make rules and regulations necessary to administer the Code in this Sub- 
division and shall designate and authorize such agencies as may be required for 
this purpose. 

8. North Central Hardwood Subdivision 

Division (Art. II c). — The North Central Hardwood Subdivision consists of 
producers and manufacturei-s of hardwood lumber and timber products in the 
States of Ohio, Indiana, and Illinois. 

Products (Art. II a). — All lumber and timber products enumerated except 
poles and piling, products of planing miUs not operated in conjunction with saw- 
mills, hardwood flooring, veneers, and plywood. 

Administrative Agency (Art. III). — The North Central Subdivision Association 
is designated as the agency of the Authority and of the Hardwood Coordinating 
Committee for the administration of the Code in this Subdivision. Said Associa- 
tion, through its Administration Committee, is authorized to make rules and 
regulations necessary to administer the Code in this Subdivision, and shall 
designate and authorize such further agencies as may be required for this purpose. 

9. Northeastern Hardwood Subdivision 

Subdivision (Art. II c). — The Northeastern Hardwood Subdivision consists of 
the producers and manufacturers of hardwood lumber and timber products of 
birch, beech, maple, ash, elm, basswood, oak, and related species in the New 
England States, New York, Pennsylvania, and New Jersey. 

Products (Art. II a). — All lumber and timber products enumerated except: 
poles and piling, planing-mill products, woodwork, hardwood flooring, veneers, 
plywood, and kiln-dried hardwood dimension. 

Administrative Agency (Art. III). — The Northeastern Lumber Manufacturers 
Association is designated as the agency of the Authority and of the Hardwood 
Coordinating Committee for the Administration of the Code in this Subdivision. 
Said Association, through its Board of Directors, is authorized to make rules and 
regulations necessary to administer the code in this Subdivision and shall designate 
and authorize such agencies as may be required for this purpose. 

10. Northern Hemlock Division 

Division (Art. II c). — The Northern Hemlock Division consists of the producers 
and manufacturers of lumber and timber products of Northern hemlock, tama- 
rack, balsam fir, Norway pine, and white pine in the States of Michigan, Wiscon- 
sin, and Minnesota (excepting the producers and manufacturers of Northern pine 
lumber in Minnesota). 

Products (Art. II a). — All lumber and timber products enumerated except: 
poles and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-dried 
hardwood dimension. 

Administrative Agency (Art. III). — The Northern Hemlock and Hardwood 
Manufacturers Association is designated as the agency of the Authority for the 



137 

administration of the Code in this Division. Said Association, through its 
Board of Directors, is authorized to make rules and regulations necessary to 
administer the Code in this Division, and shall designate and authorize such 
agencies as may be required for this purpose. 

11. Northern Pine Division 

Division (Art. II c) . — The Northern Pine Division consist of the producers and 
manufacturers of lumber and timber products of white pine, Norway pine, and 
miscellaneous softwood and hardwood lumber in the State of Minnesota. 

Products (Art. II a). — All lumber and timber products enumerated except: 
millwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimen- 
sion. 

Administrative Agency (Art. II). — The Northern Pine Manufacturers' Asso- 
ciation is designated as the agency of the Authority for the administration of the 
Code in this Division. Said Association, through its Board of Directors, is 
authorized to make rules and regulations necessary to administer the Code in this 
Division, and shall appoint such agencies as may be necessary for this purpose. 

12. Redwood Division 

Division (Art. II c). — The Redwood Division consists of producers and manu- 
facturers of lumber and timber products of redwood and intermingled species in 
the counties of Del Norte, Humboldt, Mendocino, Sonoma, Marin, San Mateo, 
Santa Cruz, and Monterey, in the State of California. 

Products (Art. II a). — All lumber and timber products, split, sawn, or refined by 
manufacture, except hardwood flooring, veneers, plywood, and kiln-dried hard- 
wood dimension. 

Administrative agency (Art. III). — The California Redwood Association is des- 
ignated as the agency of the Authority for the administration of the Code in this 
Division. Said Association, through its Board of Directors, is authorized to 
make rules and regulations necessary to administer the Code in this Division 
and shall designate such agencies as may be required for this purpose. 

13. Northeastern Softwood Division 

Division (Art. II c). — The Northeastern Softwood Division consists of producers 
and manufacturers of lumber and timber products of hemlock, spruce, white 
pine, and other softwoods in the New England States, New York, Pennsylvania, 
New Jersey, and West Virginia. 

Products (Art. II a). — AH lumber and timber products enumerated except 
poles and piling, planing-mill products, woodwork, hardwood flooring, veneers, 
plywood, and kiln-dried hardwood dimension. 

Administrative Agency (Art. III). — The Northeastern Lumber Manufacturers 
Association is designated as the agency of the Authority for the administration 
of the Code in this Division. Said Association, through its Board of Directors, 
is authorized to make rules and regulations necessary to administer the Code in 
this Division and shall designate and authorize such agencies as may be required 
for this purpose. 

14. Southern Pine Division 

Division (Art. II c). — The Southern Pine Division consists of producers and 
manufacturers of lumber and timber products of the various species of Southern 
Pine, in the States of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, 
Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, South 
Carolina, Tennessee, Texas, Virginia, and West Virginia. 

Products (Art. II a). — Southern Pine logs, poles and piling, sawn lumber, and 
products of planing mills operated in conjunction with sawmills, shingles, lath, 
boxes, and crates. 

Administrative Agency (Art. III). — The Southern Pine Association is designa,ted 
as the agency of the Authority for the administration of the Code in this Division. 
Said Association, through its Board of Directors, is authorized to make rules 
and regulations necessary to administer the Code in this Division and shall 
designate and authorize such agencies as may be required for this purpose. 

15. Southern Rotary Cut Lumber Subdivision 

Subdivision (Art. II c). — The Southern Rotary Cut Lumber Subdivision con- 
sists of manufacturers of package and box grades of rotary-cut lumber in the 



138 

States of North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, 
Louisiana, Tennessee, Arkansas, and Texas. 

Products (Art. II a).— All lumber manufactured on rotary lathes for cases, 
crates, and fruit and vegetable packages, whether for sale to the manufacturers 
of these products, or for use by the rotary-cut lumber producer himself in the 
manufacture of such products, or for sale in the open market or to package manu- 
facturers in competition with those who produce solely package grades of rotary- 
cut lumber. 

Administrative Agency (Art. III). — The Southern Rotary Cut Lumber Associa- 
tion is designated as the agency of the Authority for the administration of the 
Code in this Subdivision. Said Association, through its Executive Committee, is 
authorized to make rules and regulations necessary to administer the Code in this 
Subdivision, and shall designate and authorize such agencies as may be required 
for this purpose. 

16. West Coast Logging and Lumber Division 

Division (Art. II c). — The West Coast Logging and Lumber Division consists 
of producers and manufacturers of lumber and timber products of Douglas Fir, 
West Coast Hemlock, Sitka Spruce, Western Red Cedar, and related species in 
Western Oregon, Western Washington, and Alaska. 

Products (Art. II a). — All lumber and timber products enumerated except: 
shingles, woodwork, veneers, plywood, hardwood flooring, and kiln-dried hardwood 
dimension. 

Administrative Agencies (Art. III). — The West Coast Lumbermen's Association 
and the Pacific Northwest Loggers Association are designated as the agencies of 
the Authority for the administration of the Code in this Division. Said Associa- 
tions, through their respective Boards of Trustees, are authorized to make rules 
and regulations necessary to administer the Code in this Division and shall 
designate and authorize such agencies as may be required for this purpose. 

17. Douglas Fib Plywood Subdivision 

Subdivision (Art. II c). — The Douglas Fir Plywood Subdivision consists of 
manufactures of Douglas Fir Veneers and plywood in the States of Oregon and 
Washington. 

Products (Art. II a). — The following products only shall be under the juris- 
diction of this Subdivision, viz: veneers; plywood. 

Administrative agencies (Art. III). — The Douglas Fir Plywood Manufacturers 
Association, a Branch of the West Coast Lumbermen's Association, is designated 
as the agency of the Authority for the administration of the Code in this Sub- 
division, under the supervision of the West Coast Lumbermen's Association as 
to maximum hours of labor, minimum rates of pay, the payment of Code fees 
and submission of Code reports, and any questions of correlation and adjustment 
with other industries included in the West Coast Logging and Lumber Division. 
Subject to such supervision, the said Association, through its Executive Com- 
mittee, is authorized to make rules and regulations necessary to administer the 
Code in this Subdivision and shall designate and authorize such agencies as may 
be required for this purpose. 

18. Douglas Fir Door Subdivision 

Subdivision (Art. II c). — The Douglas Fir Door Subdivision consists of manu- 
factures of Douglas Fir stock doors in the States of Oregon and Washington. 

Products (Art. II a). — The following products only shall be under the juris- 
diction of this Subdivision, viz: Douglas Fir stock doors. . 

Administrative Agencies (Art. III). — The Douglas Fir Door Manufacturers 
Association, a branch of the West Coast Lumbermen's Association, is designated 
as the agency of the Authority for the administration of the Code in this Sub- 
division, under the supervision of the West Coast Lumbermen's Association as 
to maximum hours of labor, minimum rates of pay, the payment of Code fees 
and submission of Code Reports, and any questions of correlation and adjust- 
ment with other industries included in the West Coast Logging and Lumber 
Industry Division. Subject to such supervision, the said Association, through 
its Executive Committee, is authorized to make rules and regulations necessary 
to administer the Code in this Subdivision and shall designate and authorize 
Buch agencies as may be required for this purpose. 



139 

19. Western Pine Division 

Division (Art. II c). — The Western Pine Division consists of producers and 
manufacturers of lumber and timber products of western pines and intermingled 
species in the States of Arizona, California (excepting certain counties which are 
included in the Redwood Division), Colorado, Idaho, Montana, Oregon (except- 
ing certain counties which are included in the West Coast Logging and Lumber 
Division), New Mexico, South Dakota, Utah, Washington (excepting certain 
counties which are included in the West Coast Logging and Lumber Division), 
and Wyoming. 

Products (Art. II a). — All lumber and timber products enumerated except 
poles and piling, products of planing mills not operated in conjunction with 
sawmills, shingles, woodwork (millwork), hardwood flooring, veneers, plywood, 
and kiln-dried hardwood dimension. 

Administrative Agency (Art. III). — The Western Pine Association is designated 
as the agency of the Authority for the administration of the Code in this Division. 
Said Association, through its Board of Directors, is authorized to make rules 
and regulations necessary to administer the Code in this Division, and shaU 
designate and authorize such agencies as may be required for this purpose. 

20. Woodwork Division 

Division (Art II c). — (a) The Woodwork Division consists of manufacturers 
whose predominant products are doors, windows, screens, frames, and interior 
trim, which products are similar to and in competition with the products of 
planing mills and sash and door and millwork factories operated in conjunction 
with sawmills; manufacturers whose predominant products are furniture, fixtures, 
refrigerators, automobile bodies, or ecclesiastical furniture or whose predominant 
business is the manufacturing, finishing, and installing in the building of cabinet- 
work are not included. 

(b) The Woodwork Division is divided for jurisdictional and administrative 
purposes into Subdivisions as follows: 

Stock Manufacturers Subdivision. 
Wholesaler Distributors Subdivision. 
Special Woodwork Subdivision. 

(c) The territory and persons subject to the jurisdiction of the several Sub- 
divisions shall be defined by the agency of the Division hereinafter designated. 
Other Subdivisions may be established by the Agency of the Division with the 
approval of the Authority. 

(d) Each of the Subdivisions hereinabove named and any Subdivision here- 
after established under authority of the designated agency of the Division may, 
subject to the approval of said agency, designate an agency for the administra- 
tion of the Code in such Subdivision. Each Subdivision shall be independent 
and self-governing in respect of all conditions and problems relating to the said 
Subdivision exclusively. Proposals in respect of matters affecting more than 
one Subdivision may be initiated by any Subdivision and shall be submitted to 
and decided by the designated agency of the Division. The designated agency 
of the Division shall reserve the power and duty to enforce the provisions of the 
Code and the rules and regulations of the Authority and of this Division, includ- 
ing rules of fair trade practice. 

(e) Each Subdivision hereinabove named and each Subdivision hereafter estab- 
lished as hereinabove provided shall have the power and authority to establish 
within the Subdivision groups of manufacturers or distributors whose conditions 
and problems are similar, and may authorize each of said groups so established 
to designate with the approval of the designated agency of the Subdivision its 
own administrative agency and may confer upon the administrative agency of 
any such group such powers and authorities as it may deem necessary in order 
to administer this Code within said group. 

Products (Art. II a). — Woodwork (millwork) including products of planing 
mills operated in conjunction with retail lumberyards, and excepting Douglas fir 
stock doors. 

Administrative Agency (Art. III). — The Emergency National Committee of the 
Woodwork Division, consisting of the Board of Directors of the National Wood- 
work Association, is designated as the agency of the Authority for the admin- 
istration of the Code in this Division. Said Committee is authorized to make 
rules and regulations necessary to administer the Code in this Division and shall 
designate and authorize such agencies as may be required for this purpose. 



140 

21. Stock Manutacturers Subdivision 

Subdivision (Art. II c). — The Stock Manufacturers Subdivision consists of 
manufacturers of products listed below: 

Products (Art. II a). — Stock or standard doors, windows, screens, frames, trim, 
and miscellaneous millwork. 

Administrative Agency (Art. III). — The Stock Manufacturers Coordinating 
Committee, to be composed of five persons selected jointly by National Door 
Manufacturers Association and National Screen Association, is designated as 
the agencj' of the Authority and of the Emergency National Committee of the 
Woodwork Division for the administration of the Code in this Subdivision. 
Said committee is authorized to make rules and regulations necessary to admin- 
ister the Code in this Subdivision and shall designate and authorize such agencies 
as may be required for this purpose. 

22. Wholesale Distributors Subdivision 

Subdivision (Art. II c). — The Wholesale Distributors Subdivision consists of 
wholesale distributors of products listed below: 

Products (Art. II a).— Doors, windows, screens, frames, trim, and miscellaneous 
woodwork. 

Administrative Agency (Art. III). — The Wholesale Sash and Door Association, 
Chicago, Illinois, is designated as the agent of the Authority and of the Emergency 
National Committee of the Woodwork Division for the administration of the 
Code in this Subdivision. Said Association is authorized to make rules and regu- 
lations necessary to administer the Code in this Subdivision and shall designate 
and authorize such agencies as may be required for this purpose. 

23. Special Woodwork Subdivision 

Subdivision (Art. II c). — The Special Woodwork Subdivision consists of manu- 
facturers of products listed below: 

Products (Art. II a). — Made-to-order or special woodwork. 

Administrative Agency (Art. III). — A committee to be selected jointly by Mill- 
work Cost Bureau of Chicago, Illinois; Eastern Millwork Bureau of New York 
City, New York; and Southern Woodwork Association of Knoxville, Tennessee, 
to be known as the Coordinating Committee of the Special Woodwork Sub- 
division, is designated as the agent of the Authority and of the Emergency 
National Committee of the Woodwork Division for the administration of the 
Code in this Subdivision. The said Committee is authorized to make rules and 
regulations necessary to administer the Code in this Subdivision and shall desig- 
nate and authorize such agencies as may be required for this purpose. 

24. Wooden Package Division 

Division (Art. II (c)) and Products (Art. II (a)). — The Wooden Package Divi- 
sion consists of manufacturers of wooden shocks, boxes, crates, baskets, hampers, 
and other packages or parts thereof, whether made of sawed lumber, veneer, or 
plywood, either knocked down or put together with nails, wire, or glue, with or 
without iron or wire reinforcement, together with trays and other products 
commonly made in box factories. 

Administrative Agency (Art. III). — The National Federation of Wooden Pack- 
age Associations, a coordinating agency of the Wooden Package Industry Asso- 
ciations, is designated as the agency of the Authority for the administration of 
the Code in this Division. Said National Federation, through its Board of 
Directors (being the Coordinating Committee of the Wooden Package Industry), 
is authorized to make rules and regulations necessary to administer the Code in 
this Division, and shall designate and authorize such agencies as may be required 
for this purpose. 

(a) For the more effective administration and enforcement of the Code in this 
Division, Subdivisions shall be established as may be necessary to meet the 
requirements of the various groups and classifications of manufacturers included 
therein. 

(b) The following Subdivisions are hereby established: 

A. Sawed Box, Shook, Crate, and Tray Subdivision. 

B. Plywood Package Subdivision. 

C. Standard Container Subdivision. 

D. Pacific Veneer Packages Subdivision. 



141 

E. Egg Case Subdivision. 

F. Wirebound Box Subdivision. 

G. Veneer Fruit and Vegetable Package Subdivision. 

(c) Additional Subdivisions of this Division may be established by said 
Coordinating Committee with the approval of the Authority. 

(d) The said Coordinating Committee shall, with the approval of the Authority, 
designate the administrative agency under the Code in each of the foregoing 
Subdivisions and in such additional Subdivisions as may hereafter be established; 
and shall authorize the designated agency in each Subdivision to make such rules 
and regulations and to designate such further agencies as may be required for 
the administration of the Code therein. Each Subdivision shall be independent 
and self-governing in respect of all matters and problems relating to the said 
Subdivision exclusively, under the general direction of the said Coordinating 
Committee. Proposals in respect of matters affecting more than one Subdivision 
may be initiated by any such Subdivision and shall be submitted for consideration 
to the said Coordinating Committee. The designated agency of the Division 
shall reserve the power and duty to enforce the provisions of the Code and the 
rules and regulations of the Authority and of this Division, including rules of 
fair trade practice. 

(e) Subdivision hereinabove named, and each Subdivision hereafter established 
as hereinabove provided, shall have power and authority to establish within the 
Subdivision groups of manufacturers whose conditions and problems are similar, 
and may authorize each of said groups so established to designate with the approval 
of the designated agency of the Subdivision its own administrative agency and 
may confer upon the administrative agency of any such group such powers and 
authorities as it may deem necessary in order to administer this Code within 
said group. 

25. Sawed-Box, Shook, Crate and Tray Subdivision 

Subdivision (Art. II c) and Products (Art. II a) . — The Sawed-Box, Shook, Crate 
and Tray Subdivision of the Wooden Package Division consists of manufacturers, 
sales agencies, distributors, and the agents or representatives thereof, of sawed 
wooden boxes, shooks, crates and trays, whether such containers be in shook or 
in made-up form, including complete boxes, crates and trays, as well as any por- 
tion thereof. 

Administrative Agency (Art. III).^ — The National Wooden Box Association, 
through its Board of Governors as its Coordinating Committee, is designated as 
the agency of the Authority and of the Coordinating Committee of the Wooden 
Package Division for the administration of the Code in this Subdivision. Said 
Association, through its Coordinating Committee, is authorized to make rules 
and regulations necessary to administer the Code in this Subdivision, and shall 
designate and authorize such agencies as may be required for this purpose. 

26. Plywood Package Subdivision 

Subdivision (Art. II c) and Products (Art. II a).- — ^The Plywood Package 
Subdivision consists of manufacturers of plywood packages or containers and of 
flat plywood for package or container purposes located in any part of the United 
States. 

Administrative Agency (Art. III). — The Plywood Package Institute is desig- 
nated as the agency of the Authority and of the Coordinating Committee of the 
Wooden Package Division for the administration of the Code in this Subdivision. 
Said Institute, through its Executive Committee, is authorized to make rules 
and regulations necessary to administer the Code in this Subdivision, and shall 
designate and authorize such agencies as may be required for this purpose. 

27. Standard Container Subdivision 

Subdivision (Art. II c) and Prod-nets (Art. II a). — The Southeastern Veneer 
Container Subdivision of the Wooden Package Division consists of manufac- 
turers of veneer fruit and vegetable containers and/or container material in the 
States of Florida, Georgia, and Alabama. 

Administrative Agency (Art. III). — The Standard Container Manufacturers 
Association is designated as the agency of the Authority and of the Coordinating 
Committee of the Wooden Package Division for the administration of the Code 
in this Subdivision. Such Association, through its Board of Directors, is au- 
thorized to make rules and regulations necessary to administer the Code in this. 
Subdivision, and shall designate and authorize such agencies as may be required 
for this purpose. 



142 

28. Pacific Veneer Package Subdivision 

Subdivision (Art. II c) and Products (Art. II a). — The Pacific Veneer Package 
Subdivision of the Wooden Package Division consists of manufacturers of veneer 
fruit and vegetable containers and package, and parts thereof, in the states of the 
Pacific Slope. 

Administrative Agency (Art. III). — The Pacific Veneer Package Association is 
designated as the agency of the Authoritj^ and of the Coordinating Committee 
of the Wooden Package Subdivision for the administration of the Code in this Sub- 
division. Such Association, through its Board of Directors, is authorized to 
make rules and regulations necessary to administer the Code in this Subdivision 
and shall designate and authorize such agencies as maj- be required for this pur- 
pose. 

29. Egg Case Subdivision 

Subdivision (Art. II c) and Products (Art. II a). — The Egg Case Subdivision 
consists of manufacturers of egg cases or parts thereof of cottonwood, tupelo, 
gum, and other hardwoods. 

Administrative agency (Art. III).- — The Egg Case Manufacturers Exchange is 
designated as the agency of the Authority and of the Coordinating Committee 
of the Wooden Package Division for the administration of the Code in this Sub- 
division. Said Exchange, through its Executive Committee, is authorized to 
make rules and regulations necessary to administer the Code in this Subdivision, 
and shall designate and authorize such agencies as may be required for this 
purpose. 

30. Wirebound Box Subdivision 

Subdivision (Art. II c) and Products (Art. II a). — The Wirebound Box Sub- 
division of the Wooden Package Division consists of manufacturers of wirebound 
boxes and crates in the United States. 

Administrative Agency (Art. III). — The Wirebound Box Manufacturers Asso- 
ciation is designated as the agency of the Authority and of the Coordinating 
Committee of the Wooden Package Division for the administration of the Code 
in this Subdivision. Said Association, through its Board of Governors, is author- 
ized to make rules and regulations necessary to administer the Code in this Sub- 
division and shall designate and authorize such agencies as may be required for 
this purpose. 

30a. Veneer, Fruit and Vegetable Package Division 

Division (Art. II c) and Products (Art. II a). — The Veneer Fruit and Vegetable 
Package Subdivision consists of manufacturers of wooden boxes, crates, shooks, 
baskets, hampers, trays, and all kinds of wooden veneer packages used in the 
marketing of fresh and perishable fruits and vegetables not included in other 
subdivisions of the Wooden Package Division of this Code. 

Administrative Agency (Art. III). — The American Veneer Package Association 
is designated as the agency of the Authority and of the Coordinating Committee 
of the Wooden Package Division for the administration of the Code in this Sub- 
division. Said Association, through its Board of Directors, is authorized to make 
rules and regulations necessary to administer the Code in this Subdivision, and 
shall designate and authorize such agencies as may be required for this purpose. 

31. Red Cedar Shingle Division 

Division (Art. II c). — The Red Cedar Shingle Division consists of producers 
and manufacturers of Western Red Cedar shingles in Washington and Oregon. 

Products (Art. II a). — The following products only shall be under the jurisdic- 
tion of this Division, viz: Shingles. 

Administrative Agency (Art. III). — The Washington and Oregon Shingle 
Association is designated as the agency of the Authority for the administration 
of the Code in this Division. Said Association, through its Board of Trustees, is 
authorized to make rules and regulations necessary to administer the Code in 
this Division and shall designate and authorize such agencies as may be required 
for this purpose. 

32. Stained Shingle Subdivision 

Subdivision (Art. II c). — The Stained Shingle Subdivision consists of persons 
processing, staining, and treating wood shingles in the United States. 

Products (Art. II a). — The following products only shall be under the jurisdiQ^ 
tion of this Subdivision, viz: Shingles (Stained, processed, or treated). 



143 

Administrative Agency (Art. III). — The National Stained Shingle Association 
is designated as the agency of the Authority for the administration of the Code in 
this Subdivision. The said Association, through its Board of Directors, is autl t- 
ized to malie rules and regulations necessary to administer the Code in this Sub- 
division and shall designate and authorize such agencies as may be required for 
this purpose. 

33. Oak Flooring Division 

Division (Art. II c) .- — The Oak Flooring Division consists of producers, manu- 
facturers, and distributors of oak flooring throughout the United States. 

Products (Art. II a). — All standard items of oak flooring as set forth in the 
Grading Rules and Specifications of the National Oak Flooring Manufacturers 
Association. 

Administrative Agency (Art. III). — The National Oak Flooring Manufacturers 
Association is designated as the agency of the Authority for the administration of 
the Code in this Division. Said Association, through its Board of Directors, is 
authorized to make rules and regulations necessary to administer the Code of this 
Division and shall designate and authorize such agencies as may be required for 
this purpose. 

34. The Veneer Division 

Division (Art. II c). — The Veneer Division consists of producers, manufactur- 
ers, importers, and distributors of veneers throughout the United States. 

Products (Art. II a). — All veneers regardless of species and origin except: 
Douglas Fir, Western Cedars, Spruce, Western and Southern Pines, Hemlock, and 
such hardwood veneers as are manufactured exclusively for crates and other 
containers. 

Administrative Agency (Art. III). — The Veneer Association is designated as the 
agency of the Authority for the administration of the Code in this Division. 
Said Association, through its Board of Directors, is authorized to make rules and 
regulations necessary to administer the Code in this Division and shall designate 
and authorize such agencies as may be required for this purpose. 

35. Maple, Beech, and Birch Flooring Division 

Division (Art. II c) . — This Division consists of manufacturers of maple, beech, 
and birch flooring throughout the United States. 

Products (Art. II a). — Hard maple, beech, and birch flooring. 

Administrative Agency (Art. III). — The Maple Flooring Manufacturers Asso- 
ciation is designated as the agency of the Authority for the administration of 
the Code in this Division. Said Association, through an Executive Committee 
consisting of its President, Vice President, two members appointed by the manu- 
facturers in the northern states and one member appointed by the manufac- 
turers in the Southern States, is authorized to make sales and regulations necessary 
to administer the Code in this Division, and shall designate and authorize such 
agencies as may be required for this purpose. 

36. Hardwood Dimension Division 

Division (Art. II c). — The Hardwood Dimension Division consists of manu- 
facturers of kiln-dried hardwood dimension stock in three distinct sections as 
follows: Southeastern — North Carolina, South Carolina, Florida, Georgia, and 
eastern Tennessee; Central — ^Kentucky and Western Tennessee; Southwestern — 
Missouri, Arkansas, Louisiana, Mississippi, and Texas. 

Products (Art. II a).- — Kiln-dried hardwood dimension only. 

Administrative Agency (Art. III). — The Hardwood Dimension Manufacturers 
Association is designated as the agencj^ of the Authority for the administration 
of the Code in this division. This association authorized its Executive Com- 
mittee to make rules and regulations necessary to administer the Code in this 
division. 



SCHEDULE B 



Rules of Fair Trade Practice for the Lumber and Timber Products 

Industries 

Section 1. Definitions. — (a) A manufacturer is a person who operates a mill 
converting logs or lumber into lumber and/or timber products. 



144 

(b) The term "sales company" used in this Code is a company organized or 
owned by manufacturers to sell their own or other manufacturers' lumber through 
salaried salesmen, wholesalers, or commission men. 

(c) A wholesaler is a person actively and continuously engaged in buying, as- 
sembling, or rehandling lumber and timber products from manufacturers or other 
wholesalers in quantity lots and selling it principally to wholesalers, retailers, 
and recognized wholesale trade, who maintains a sales organization for this pur- 
pose, assumes credit risks and such other obligations as are incident to the 
transportation and distribution of lumber and timber products. Wholesale 
Assembling and Distributing Yards as defined in Divisional Rules and Regula- 
tions shall also be classed as wholesalers. 

(d) A commission man is a person located in the territory which he serves, 
who regularly sells in wholesale quantities for manufacturers or wholesalers to 
recognized wholesale trade and who is paid a stipulated amount (known as a 
commission) on each individual sale and holds a relation to the seller similar to 
that of a salaried salesman. 

(e) A retailer is one who maintains adequate and permanent storage and 
handling facilities, a sales organization for the consumer trade and carries a well 
assorted stock adapted to the normal needs of the consumers in his sales territory. 

(f) Industrial. — The term "industrial" as used in these Rules includes wood 
fabricators, box and crating manufacturers and users, and users of lumber and 
timber products in part or all of their manufacturing and shipping processes. 

(g) An exporter is a manufacturer or sales company or wholesaler with definite 
foreign connections or established agencies, maintaining a permanent office in 
the U.S.A., continuously selling and shipping lumber and timber products to 
foreign countries (Canada and Mexico excepted) in substantial quantities. 

(h) An importer is a person of any nationality who brings goods, or causes 
them to be brought, into the United States from any foreign country, whether 
in bond or not, and whether he is already the owner of the goods before they 
arrive or purchases them on delivered terms. 

Sec. 2. Wholesalers. — The lumber wholesaler is an economic factor in the 
distribution of lumber and it is recognized that he is entitled to compensation 
for his distribution services. 

(a) Each Division, and each Subdivision, through its designated agency, shall 
establish for its members and file with the Authority a schedule of maximum 
discounts to be allowed to wholesalers for distribution services. Said discounts 
when approved by the Authority shall remain in effect until changes are approved 
by it. 

(b) As a condition of the grant of wholesale discounts, the wholesaler shall not 
rebate or allow any part of said discount to any customer, or sell or offer to sell 
any item of lumber or timber products under the minimum prices established as 
provided in this Code, except to another wholesaler or manufacturer; and he shall 
conform to all provisions of this Code, as they apply to him in the sale and 
distribution of each species. 

Sec. 3. Commission men. — The lumber commission man, as an agent of the 
seller, is entitled to compensation (commission) for his distribution services. 

(a) Each Division, and each Subdivision, through its designated agency, shall 
establish for its members and file with the Authority a schedule of maximum 
commissions to be paid to commission men for distribution services. Said com- 
missions when approved by the Authority shall remain in effect until changes 
are approved by it. 

(b) As a condition of the payment to him of commissions, the commission man 
shall not split commissions with any customer nor shall he sell or offer to sell any 
item of lumber and timber products under the minimum prices established as 
provided in this Code, and he shall conform to all provisions of this Code as they 
apply to him in the sale and distribution of each species. 

(c) No manufacturer or wholesaler shall be permitted to have more than one 
commission representative for each species calling on the same trade in the same 
territory. 

Sec. 4. (a) Buyers' agents who act for the purchaser shall not be entitled to 
any discounts or allowances on any lumber or timber products sold to their 
customer stockholders, owners, partners, or parties otherwise interested. 

(b) No manufacturer shall give discounts to others than wholesalers or greater 
in amount than those established and filed in accordance with Section 3 (b) of 
these Rules, or commissions to others than commission men or greater than 
those established or filed in accordance with Section 4 (b) of these Rules, and no 
manufacturer shall give allowances of any character otherwise than in accord- 
ance with standard terms of sale as set forth in Section 5 of these Rules. 



145 

(c) Direct intermanufacturer purchases or exchanges of stock between mills 
of the same Division, for the filling of orders sold on a wholesale basis, shall not 
be considered as coming under the provisions of this Code as regards minimum 
prices. 

(d) Contractual relations between a manufacturer and his sales cornpany, 
acting as sales agent or outlet at cost, shall not come under the provisions of 
this Code as to wholesale allowances or commissions, but the sales of any such 
sales company however made shall be in accordance with all provisions of this 
Code. 

Sec. 5. Sales, Orders, and Invoices.^ (a.) Except for water shipment, where 
the credit risk is satisfactory to the seller, lumber, and timber products sold by 
manufacturers and wholesalers shall not be more liberal to the buyer than as 
follows: 

(1) To retailers — 60 days net from date of invoice, or a cash discount of 2% 
of the net amount after deducting actual freight if paid within 5 days after 
arrival of car. 

(2) To wholesalers — 80% of the net amount after deducting estimated freight 
within 15 days from date of invoice, balance less 2% of total net after deducting 
actual freight within 60 days from date of invoice. 

(3) To industrials and buyers not otherwise classified — 60 days net frorn date 
of invoice or a cash discount of 2% of the net amount after deducting freight if 
paid within 10 days after arrival of car. 

(4) Prepaid freight shall be net and subject to sight draft, or to payment upon 
receipt of invoice. 

(b) No lumber and timber products on which minimum prices have been 
established under this Code shall be sold for less than the said established prices, 
except when sold to wholesalers under provisions of Section 2. 

(c) No lumber or timber products shall be sold with any guarantee against 
decline in price before or after delivery. 

(d) Except for water shipment, manufacturers and wholesalers shall not make 
contracts with retailers and/or wholesalers for future shipment to retailers at cur- 
rent prices for shipment over a longer period than 30 days from date of order. 
Except as specifically authorized by the Division or Sub-Division Authority, 
manufacturers and wholesalers shall not make contracts with industrials and/or 
wholesalers for shipments to industrials at current prices for a longer period than 
three months from date of order, except when said contracts contain a provision 
for a price adjustment to be effective for each succeeding ninety-day period, 
which revised prices shall be not less than the established minimum prices at the 
time of each adjustment. The foregoing restrictions shall not apply to lumber or 
timber products sold for a specific construction job on a contract not subject to 
cancellation. Complete specifications covering all orders for rail or water ship- 
ments shall be furnished to the seller within ten days from date of order. 

(e) In figuring delivered prices for rail shipment, by adding freight charges to 
mill prices, the seller shall use the established schedule of weights for the species 
sold. 

(f) Prices shown on order and invoice shall not include any manufacturer's 
sales, excise, privilege, or other tax, freight surcharge or charge imposed upon or 
incident to said transaction, or by reason thereof, by any governmental authority 
either by present or future enactment, and no such tax, surcharge or charge shall 
be deductible from invoice by buyer in making remittance to either manufac- 
turer or wholesaler. 

(g) All quotations shall include a definite limit of time for acceptance, but in 
no case shall quotations be for a period longer than 15 days from date of quotation, 
except on special construction projects, not to exceed 60 days. 

(h) No manufacturer or wholesaler shall make a carload sale that requires 
invoicing and delivery to more than three retailers or more than one stop-over at 
origin and one stop-over at destination. Pool car sales of less than 10,000 feet 
to any one customer shall be subject to such service charge as may be established 
by each of the several Divisions. Stop-over charges, if any, shall be paid by the 
buyer or buyers in addition to the invoice price. 

(i) Orders and invoices shall show terms of sales, association grade, species, 
quantities, sizes, and price of each item for agreed delivery. In respect to lumber 
and timber products not of American Lumber Standard size and/or association 
grade both order and invoice shall show the nominal and finished sizes and the 
grade sold by reference to some non-association specification on file with the 
Division, or completely stating the specifications. Orders and invoices shall state 
whether the stock is green, air dried, or kiln dried. 



146 

(j) Neither manufacturers nor wholesalers shall place stock in transit via rail. 
Neither manufacturers nor wholesalers (except such wholesalers as have acquired 
full and unconditional title to the stock prior to shipment) shall place unsold stock 
in transit via water. Neither manufacturers nor wholesalers shall place stock on 
consignment. 

(k) In respect of lumber special nonstandard sizes and grades may be manu- 
factured and sold under special contract, but grade, size, both rough and dressed, 
and price must be detailed in both order and invoice. The manufacture, pur- 
chase and/or sale of nonstandard sizes, grades, and classifications of lumber and 
timber products for the purposes of evading any of the provisions of this Code is 
hereby prohibited. 

Sec. 6. Grading and Inspection. — (a) In the absence of an express sales agree- 
ment all lumber and timber products shall be manufactured and graded in accord- 
ance with official published manufacturers association grading and inspection 
rules applicable thereto. In the absence of an express sales agreement, trade 
terms, definitions, and all other terms, words or phrases, and regulations relating 
to the manufacture, sale, invoicing, and shipment of lumber are understood to be 
interpreted and applied in accordance with the applicable provisions of the official 
manufacturers association grading rules in effect at the time of sale. 

(b) Manufacturers and wholesalers shall not alter grades by taking out either 
the poorest or the best material or by adding lower or higher grade material for the 
purpose of evading the provisions of the Code. 

(c) If lumber is grade marked or species marked only the standard manufac- 
turers association grade marks and species marks wherever established shall be 
used. 

(d) Manufacturers and wholesalers shall not misbrand or invoice falsely any 
lumber as to quantity, size, grade, origin, species, or condition of drjaiess. 

(e) Official inspection, when required by either buyer or seller, shall be made 
only by an official inspector of the manufacturers association issuing the official 
grading rules for the species to be inspected, applying the rules agreed to at the 
time of sale, or, in the event of no such agreement, the official manufacturers 
association grading rules and regulations under which the lumber or timber 
products are commonly bought and sold. 

(f) Except for water shipment, as certification of quantity and grade of lumber 
and timber products shipped, an official manufacturers association car card 
(shippers certificate) shall be placed in each car shipped; such certificate shall not 
disclose the name of the originating manufacturer but shall carry such marks or 
number as will enable the Division or Subdivision to trace the shipment. For 
shipments requiring official inspection at point of origin the official certification 
of the manufacturers association inspection agencies shall be furnished. 

(g) All lumber and timber products either rough or dressed manufactured to 
sizes below American Lumber Standards and/or manufacturers association stand- 
ards sold on standard nominal size shall be branded "sub-standard" and such 
brand shall not be obliterated or removed. 

Sec. 7. Arbitration. — Any dispute between parties coming within the provisions 
of this Code involving $50.00 or more and arising out of transactions in respect to 
the sale of lumber and timber products, except as to grade or tally, may be 
referred to an arbitration committee. For this purpose the disputants agreeing 
to arbitration shall sign an arbitration agreement approved by the Authority for 
which application may be made to any Division. In the event of the failure of 
the disputants to agree as to the arbitration agency the Authority may designate 
an agency to conduct the arbitration. The findings and award of said arbitration 
through said agency shall be final and binding upon both parties. 

Sec. 8. Policing. — The authority shall establish such agencies generally dis- 
tributed through the United States as it may deem necessary to provide for such 
prompt relaxation of these rules and/or interpretation thereof as may be necessary 
to prevent these rules from promoting monopolies or eliminating or oppressing 
small enterprises or operating to discriminate against them, and shall invest 
such agencies with all power and authority necessary or appropriate to secure 
prompt decision of such questions. 

Sec. 9. Export Business. — These rules shall not apply to export business which 
shall be subject to the supplemental Rules of Fair Trade Practice of each 
Division or Subdivision. 

o 



Approved Code No. 10 
CODE OF FAIR COMPETITION 

FOR THE 

PETROLEUM INDUSTRY 

As Approved on August 19, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16, 1933, and for my approval of a 
Code of Fair Competition for the Petroleum Industry, and hearings 
having been held thereon an-d the Administrator having rendered his 
report together with his recommendations and findings with respect 
thereto, aiid the Administrator having found that the said Code of 
Fair Competition complies in all respects with the pertinent provi- 
sions of title I of said act and that the requirements of clauses (1) 
and (2) of subsection (a) of section 3 of the said act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by title I of the 
National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 

Hugh S. Johnson, 

Administrator. 
The White House, 

August 19, 1933. 

(147) 



National Recovery Administration, 
Washington, D.C., August Nineteenth 19S3. 
The President, 

The White House. 

My Dear Mr. President: I have the honor to submit and recommend for your 
approval, the Code of Fair Competition of the Petroleum Industry. The Code 
has been approved by the Labor Advisorj' Board, the Consumers Advisory 
Board and the Industrial Advisory Board. 

An analysis of the provisions of the Code has been made by the Administration 

and a complete report is being formulated for transmission to you. I find that 

the Code complies with the requirements of clauses 1 and 2, subsection (a) of 

Section 3 of the National Industrial Recovery Act. 

I am, my dear Mr. President, 

Very sincerely yours, 

(Signed) Hugh S. Johnson, 

Administrator. 
Enclosure. 

(148) 



CODE OF FAIR COMPETITION 

FOR THE 

PETROLEUM INDUSTRY 

PREAMBLE 

To meet the emergency in the petroleum industry; to increase 
employment, establish fair and adequate wages, enlarge the purchas- 
ing power of persons related to this industry and improve standards 
of labor; to conserve the Nation's petroleum resources and to prevent 
physical and economic wastes which demoralize the national market 
to the detriment of consumers and producers and to restrain and 
avoid recurring abuses in the production, transportation and market- 
ing of petroleum and its products which directly obstruct the free 
flow of interstate and foreign commerce by causing abnormal and 
disturbing temporary fluctuations in the supply of petroleum or its 
products that are not responsive to actual demand and prices and 
disrupt the normal flow of interstate commerce in petroleum and its 
products; and to prevent the growth of monopoly resulting from un- 
fair competitive practices; and to protect the Nation from an unneces- 
sarily wasteful depletion of this natural resource essential for the 
national defense and safety and the continued functioning of the 
Nation's transportation facilities that are dependent for operation on 
an adequate and economic supply of petroleum and its products and 
to accomplish and effectuate the policies set forth in the National 
Industrial Recovery Act, this code of fair competition governing the 
petroleum industry is adopted. 

Article 1 — General 

Section 1. The provisions of this code shall become effective two 
weeks after approval thereof by the President. 

Sec. 2. The term "American Petroleum Industry" includes the pro- 
duction, transportation, refining, and marketing of crude petroleum 
and its products ; and is inclusive likewise of natural gasoline and the 
production of natural gas in conjunction with petroleum. The term 
"person" shall include natural persons, partnerships, associations, 
trusts, including trustees in bankruptcy and receivers and corpora- 
tions. The word "President" shall mean either the President or any 
agent, employee, or agency empowered by the President to act in his 
stead. 

Sec. 3. Such of the provisions of this code as are not required to be 
included therein by the National Recovery Act, may, with the 
approval of the President, be modified or eliminated as changes in cir- 
cumstances and experience may indicate. 

Sec. 4. Tliis code is hereby declared subject to the right of the 
President from time to time to cancel or modify any order, approval, 
license, rule, or regulation issued under Title I of the National Indus- 
trial Recovery Act. 

(149) 



150 

Sec. 5. Agreements between competitors within the industry or 
the purpose of accompUshing the objectives of this code, or any of 
them, or for the purpose of eliminating wasteful dupUcation of manu- 
facturing, transportation, and marketing facilities are hereby ex- 
pressly permitted, but such agreements shall not become operative 
until specifically approved by the President, and suitable public 
notice shall have been given of such agreements. Such agreements 
may at any time be disapproved by the President and upon such dis- 
approval they shall cease to be valid. 

Article II 

Section 1. In drilling, production, refinery and pipe-line opera- 
tions, the maximum hours for clerical employees shall not exceed 40 
per week and the rate of pay for each geographic division shall not 
be less than the minimum stated in Section 2. All other employees 
in these operations, except executives, supervisors, and their imme- 
diate staffs and pumpers on "stripper" wells located so as to make 
relief impracticable, shall work not more than 72 hours in any 14 con- 
secutive days, but not more than 16 hours in any two days. 

To establish geographic divisions for the petroleum industry, the 
geographic divisions as shown by the United States Department of 
Labor, Bureau of Labor Statistics wage reports (October 1929) have 
been adopted. The minimum hourly rates for the employees above 
specified, other than clerical, in each of these geographic divisions 
shall be as follows: 

Minimum rate 
Middle Atlantic Division: p^^ ftow (cents) 

New York, New Jersey, Pennsylvania __ 52 

New England: 

Maine, New Hampshire, Vermont, Rhode Island, Massachusetts. Con- 
necticut 52 

East North Central: 

Ohio, Indiana, Illinois, Michigan, Wisconsin 52 

West North Central: 

Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, 

Kansas 48 

South Atlantic: 

Delaware, Maryland, District of Columbia, Virginia, West Virginia, 

North Carolina,! South Carolina,' Georgia,' Florida ' 45 

East South Central: 

Kentucky, Tennessee, Alabama,' Mississippi ' 45 

West South Central: 

Arkansas,' Louisiana,' Oklahoma, Texas ' 48 

Mountain: 

Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Nevada, 

Utah. 50 

Pacific: 

Washington, Oregon, California 52 

Sec. 2. In market operations all employees (other than those em- 
ployed in filling or service stations, garages, or other institutions which 
sell gasoline to the public) including clerical, but excluding executives, 
supervisors and their immediate staffs, and outside salesmen shall 
work not more than 40 hours per week. The minimum rates for such 
employees in each of the geographic divisions above specified shall be 
as follows: 

1 For refinery and pipe-line work in States so marked, not more than ten percent, constituting common 
labor only, of the total number of employees in any plant or operation may be paid at not less than 80 per* 
cent of this minimum rate. 



151 

Minimum rate 
Middle Atlantic Division: per hour (cents) 

New York, New Jersey, Pennsylvania 47 

New England: 

Maine, New Hampshire, Vermont, Rhode Island, Massachusetts, Con- 
necticut 47 

East North Central: 

Ohio, Indiana, Michigan, Wisconsin, Illinois 47 

West North Central: 

Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, 

Kansas 42 

South Atlantic: 

Delaware, Maryland, District of Columbia, Virginia, West Virginia, 

North Carolina,* South Carolina,^ Georgia,* Florida * 40 

East South Central: 

Kentucky, Tennessee, Alabama,* Mississippi * 40 

West South Central: 

Arkansas,* Louisiana,* Oklahoma, Texas* 40 

Mountain: 

Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Nevada, 

Utah 45 

Pacific: 

Washington, Oregon, California 47 

Sec. 3. No filling or service station employee, nor any employee of 
any garage or other institution selling gasoline to the public shall 
work more than 48 hours per week. Nor shall any such employee 
receive less than $15.00 per week in any city of over 500,000 popula- 
tion or in the immediate trade area of such city; nor less than $14.50 
per week in any city between 250,000 and 500,000 population, or in 
the immediate trade area of such city; nor less than $14.00 per week 
in any city of between 2,500 and 250,000 population, or in the imme- 
diate trade area of such city; and in towns of less than 2,500 popula- 
tion such employees shall receive wage increases of not less than 20 
percent: Provided, That this shall not require wages in excess of $12.00 
per week: And provided further. That no employee shall receive a 
smaller weekly wage for the shorter work week than was his weekly 
wage on July "^20, 1933. 

Sec. 4. It is the purpose of the labor provisions of this code that 
all employees engaged in similar work in each of the geographic divi- 
sions shall be placed on the same basis of hours and receive at least 
the minimum earnings provided for each class of work in the industry. 

To effectuate this purpose, the differentials between the rates for 
skilled jobs and the minimums established in this code for common 
labor will not be less than those existing in the industry in each geo- 

fraphic area on July 1, 1929; but in no case will such differential for 
'irst grade refinery stillmen be less than 45^ per hour or for rotary 
drillers less than 75ji per hour. 

Sec. 5. Every person subject to this code shall insert a provision 
in all contracts made by him for work within the industry, whereby 
the contractor agrees that his employees, or those of any subcontrac- 
tor, shall receive the rates designated by this Code for each respective 
class of work and shall not work in excess of the schedule of hours in 
this Code. 

Sec. 6. On and after the effective date of this Code the employer 
in the Petroleum Industry shall not employ any person under the age 
of sixteen years. 

' For market operations in States so marked, not more than 10 percent, constituting common labor only, 
of the total number of employees in any plant or operation may be paid at not less than 80 percent of this 
minimum rate. 



152 

Sec. 7. Employees in this industry shall have the right to organize 
and bargain collectively through representatives of their own choosing, 
and shall be free from interference, restraint, or coercion by em- 
ployers of labor, or their agents, in the designation of such representa- 
tives or in self-organization, or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 
No employee in this industry, and no one seeking employment therein 
shall be required as a condition of employment to join any company 
union or to refrain from joining a labor organization of his own 
choosing. Employers of labor in this industry shall comply with the 
maximum hours of labor, minimum rates of pay, and other conditions 
of employment approved or prescribed by the President. 

Sec. 8. The provisions of this Code regulating hours of labor and 
wages of employees, shall be deemed violated by any device or method 
by which employees, as recognized in the industry on July 1st, 1933, 
are or are attempted to be removed from such present recognized 
status of employees by means of drilling contracts, commission con- 
tracts, lease and agency, or any other agreement. 

Article III — Production 

Section 1. The President is hereby requested, after such investi- 
gation and hearing as is prescribed by, and subject to the limitations 
contained in. Title 1 of the National Industrial Recovery Act, to 
limit imports of crude petroleum and petroleum products for domestic 
consumption to volumes bearing such ratio to the estimated volume 
of domestic production as will effectuate the purposes of this Code 
and the National Industrial Recovery Act. 

Sec. 2. Withdrawals of crude oil from storage shall be subject to 
approval by the Planning and Coordination Committee but for the 
remainder of 1933 shall be limited in the aggregate to an average not 
in excess of 100,000 barrels daily. Additions to storage beyond the 
necessary limits of fluctuations in working stocks shall be made only 
with the approval of the Planning and Coordinating Committee. 

Sec. 3. Required production of crude oU to balance consumer 
demand for petroleum products shall be estimated at intervals by a 
Federal Agency designated by the President. In estimating such 
required production, due account shall be taken of probable with- 
drawals from storage and of anticipated imports. The required pro- 
duction shall be equitably allocated among the several States by the 
Federal Agency. The estimates of required production and the 
allocations among the States shall be submitted to the President for 
approval, and, when approved by him, shall be deemed to be the net 
reasonable market demand, and may be so certified by the Federal 
Agency. The allocations when approved by the President shall be 
recommended as the operating schedule for the producing States and 
for the industry. In any States where oil is produced on account of 
back allowables, total current allowables shall be reduced accordingly. 

Sec. 4. The subdivision into pool and/or lease and/or well quotas 
of the production allocated to each State is to be made within the 
State. Should such quotas allocated in conformity with the provi- 
sions of this section not be made within the State or if the produc- 
tion of petroleum within any State exceeds the quota allocated to 
said State, the President may regulate the shipment of petroleum or 



153 

petroleum products in or affecting interstate commerce out of said 
State to the extent necessary to effectuate the purposes of the National 
Industrial Recovery Act and/or he may compile such quotas and 
recommend them to the State Regulatory Body in such State in 
which event it is hereby agreed that such quotas shall become opera- 
ting schedules for that State. 

If any subdivision into quotas of production allocated to any State 
shall be made within a State, any production by any person, as person 
is defined in Article I, Section 3 of this code in excess of any such 
quota assigned to him, shall be deemed an unfair trade practice and 
in violation of this code. 

Sec. 5. In any State in which no regulatory body or officer charged 
with the duty of allocating quotas within said State exists, and under 
the laws of which any person in any trade or industry within said 
State is required to comply with the terms of any Code of Fair Com- 
petition for such trade or industry approved under Title I of the 
National Industrial Recovery Act, the President may designate an 
agency within such State to compile quotas within said State. Such 
compilations, upon approval by the President shall become operating 
schedules for the petroleum industry within said State. If any sub- 
division into quotas of production allocated to any such State shall 
be made within the State, any production by any person, as person 
is defined in Article I, Section 3 of this code in excess of any such 
quota assigned to him shall be deemed an unfair trade practice and 
in violation of this code; and, further, persons engaged in the petro- 
leum industry or any branch thereof in any State may adopt a supple- 
mental code, for that State to be effective when approved by the 
President, covering any matter relating to the petroleum industry 
not in conflict with the provisions of this code. 

Sec. 6. During such periods as the production of crude petroleum 
in any State is within the allocation to that State, as provided in 
Section 3, Article III, of this code, it shall be an unfair practice within 
that State to buy, sell, receive in exchange, or otherwise acquire 
Mid-Continent crude petroleum of 36°-36. 9° A.P.I, gravity during 
any calendar month at a price per barrel (to the nearest cent) less 
than that which will be determined by multiplying the average 
Group 3 tank car price per gallon of U.S. Motor gasoline of 60-64 
octane rating during the preceding calendar month as ascertained 
and declared by the Federal agency designated by the President, by 
the constant 18.5. The constant 18.5 represents the relationship, 
during the period 1928-1932, between the average price per barrel of 
Mid-Continent crude petroleum of 36°-36.9° A.P.I, gravity and the 
average Group 3 price per gallon of U.S. Motor gasoline of 57-65 
octane rating or 58-60 U.S. Motor gasoline. For crude petroleum 
of lower or higher gravity and/or different quality and/or in different 
locality, fair and equitable differentials between the price of 36°-36.9° 
Mid-Continent crude petroleum, determined as above prescribed, and 
the prices quoted for other crude petroleums shall be observed. Each 
company or individual purchasing crude petroleum shall file a certi- 
fied copy of its price schedule and subsequent price changes with 
the Planning and Coordination Committee. Such contracts for the 
purchase of crude oil as were in existence on the effective date of this 
code shall not be affected by the provisions of this section during the 
period of the contract: Provided, That a certified copy of each such 

29906 296-1 3 1 34 



154 

contract is filed with the Planning and Coordination Committee 
■^thin thirty (30) days of the effective date of this code. Such con- 
tracts, however, may not be renewed except with the approval of the 
Planning and Coordination Committee. 

(a) For a test period of not to exceed ninety days, the President 
may prescribe the base price of the gasoline described in Section 6 
of this Article to which said constant shall be applied and, at the end 
of said period the President may revise the formula set forth in said 
Section 6 or add such additional formulae relative to the wholesaling 
and retailing of petroleum and its products in such manner as in his 
opinion may be necessary to effectuate the purposes of the National 
Industrial Recovery Act. If and whenever the President shall pre- 
scribe a base price for gasoline then it shall be an unfair trade practice 
to buy, sell, give or receive in exchange or otherwise dispose of or 
acquire such gasoline at a lower price. 

Sec. 7. Wild-catting shall not be prohibited because the future 
maintenance of the petroleum supply depends on new discoveries 
and new pools, but the shipment of petroleum or the products thereof 
in or affecting interstate commerce which was produced in a new 
field or pool which is not developed in accordance with a plan approved 
by the President is unfair competition and in violation of this code. 
For the purpose of this code a new field or pool is one discovered after 
date of approval of this code and in which ten producing wells have 
been completed. 

Article IV — Refining 

Section 1. To achieve greater accuracy in balancing production 
and consumption, to prevent the injurious effect upon interstate com- 
merce of an unbalanced accumulation of gasoline inventories in any 
part of the country, and to facilitate equitable access of refiners to 
the allowable supply of crude oU, the Federal Agency designated by 
the President shall divide the country into eight refining districts and 
shall suggest a proper relationship between inventories of gasoline and 
sales thereof for each district. 

Sec. 2. The Planning and Coordination Committee shall appoint 
subcommittees for each refining district. Said subcommittees shall 
call the attention of refiners within their respective districts to the 
existing and recommended ratios between gasoline inventories and 
sales within said districts. If any refinery claims that inequities 
exist in the availability of supplies of crude oil it shall make complaint 
to the subcormnittee for the district within which it is situated. Said 
district subcommittee shaU endeavor to adjust such controversy; if 
it cannot do so, it shall refer such complaint to the Adjustment Com- 
mittee of the Planning and Coordination Committee. The Adjust- 
ment Committee, after proper statistical study of the ratio between 
claimant's inventory and sales, and upon recommendation of the 
Planning and Coordination Committee, shall hold public hearings, 
upon due notice, with a view to arbitration. 

Sec. 3. Should any refiner have an inadequate supply of crude oil 
available from current purchases, within economic transportation 
limits then he may withdraw or purchase from storage such oil as may 
be necessary to make up the deficiency. In such cases a special 
report shall be made by such refiner to the subcommittee, which may 
prohibit further withdrawals by providing the deficiency from current 



165 

sources at competitive prices. In the event of such purchase from 
storage then it shall not be an unfair trade practice for the owner of 
storage oil to make such sale. 

Sec. 4. The storage of gasoline in amounts greater than is required 
to provide for the necessarj^ fluctuations in working stocks and to 
meet the variation resulting from seasonal demand as determined by 
the Planning and Coordination Committee, is an unfair trade practice 
and is prohibited. 

Article V — Marketing 

Rule 1. — The provisions of this Code relating to transactions of 
refiners, distributors, jobbers, or wholesalers \vith retailers and others 
selling or consigning petroleum products to consumers shall applj^ 
to all accounts, of any description, under which refiners, distributors, 
jobbers, or wholesalers sell their products or cause their products to 
be sold to consumers or to retailers, or to others selling petroleum 
products to consumers. 

Rule 2. — Whenever any merchant or vendor of any and all types 
of merchandise offers for sale at wholesale or retail motor fuels, motor 
lubricants, motor gasohne, or naphtha of a petroleum nature he shall, 
insofar as his business pertains to these products, be bound by the 
regulations of this Code. 

Rule 3. — All refiners, distributors, jobbers, and wholesalers shall 
conspicuously post at each point from which they make deliveries, 
and at places there readily accessible during business hours to the 
public, all prices for which naphtha, gasoline, motor fuel, lubricating 
oil, grease, kerosene, and heating oils are sold. 

With the exception of sales made directly by refiners, all such prices 
shall remain in effect for at least twenty-four (24) hours after they 
become effective. Refiners must post for twenty-four (24) hours the 
prices for all sales made the previous day. The posting shall include 
the following: 

The prices for all classes, types, methods, and quantities of deliver- 
ies, except those under previously executed contracts, being made 
from the place where the price is posted, a schedule of all discounts 
offered and the terms thereof and a statement of all terms as to freight 
rates and deliveries. If different prices are offered to different classes 
of buyers, such prices shall be separately posted. The posted prices 
shall include, among others, the prices for spot sales. When prices 
are posted for deliveries in tank wagons or tank trucks, the posting 
shall describe the area to which the prices apply. All sales shall be 
made at the posted prices applicable thereto, and no departure shall 
be made from the prices, schedule, or discounts or from the terms 
posted applicable to any such sale. 

All retailers, and others who sell consumers, shall conspicuously 
post at the place from which delivery is made, and at places there 
readily accessible during business hours to the pubHc, one price at 
which each brand, grade, or quality of naphtha, gasoline, motor fuel, 
lubricating oil, grease, kerosene, and heating oil are sold. All retailers 
and others who seU consumers, unless prevented therefrom by ap- 
plicable law, shall separately post in the same manner all tax they are 
required to pay or collect because of the sale of naphtha, gasohne, 
motor fuel, lubricating oil, grease, kerosene, or heating oil. All prices 



156 

posted shall remain in effect for at least twenty-four (24) hours after 
they are posted. 

AH sales shall be made at the posted prices applicable to the brand, 
grade, or quality of the commodity sold. 

Coupon books or other scrip of any nature, if used, shall be sold and 
redeemed at their face value without any discount. 

No one shall make any deviation from his posted price by means of 
rebates, allowances, concessions, benefits, scrip books, or any other 
device whereby any buyer obtains any naphtha, gasoline, motor fuel, 
lubricating oil, grease, kerosene, or heating oil at a net lower cost than 
the applicable posted price; except that commercial consumers may 
secure gasohne, motor fuel, and other oils, on contract quantity basis 
under conditions established by the Planning and Coordination 
Committee. 

The provision of all previously executed then existing contracts 
regarding price will be available for inspection upon the direct request 
of any competitor, unless such request shall be made for the purpose 
of unfairly obtaining information, in which event the decision whether 
such contract shall be made available shall be made by the authority, 
committee, or commission provided in Rule 4 of this Article, or such 
agency as it may designate. 

On a change in the posted price, no adjustments, allowances, credits, 
or refunds shall be given to any buyer on deliveries already made. 

Abnormal deliveries in anticipation of price advance and acceptance 
of orders for subsequent deliveries at prices effective before advances 
are prohibited. 

Rule 4- — Refiners, distributors, jobbers, wholesalers, retailers, and 
others engaged in the sale of petroleum shall not sell any such refined 
petroleum products below cost of manufacturing or importation into 
the State where offered for sale, plus reasonable expenses in the cost 
of marketing as observed under prudent management, fixed taxes and 
inspection fees by the Federal or State Government, or any political 
subdivision thereof, provided, however, that any person is permitted 
to meet competition in violation of this rule concerning which he has 
made complaint to the Planning and Coordination Committee, or 
any authorized agency thereof, but only pending action thereon. 

An authority, committee, or commission delegated by the National 
Recovery Administration for such purposes shall receive complaints 
of violation of this rule and make such investigation and/or hold such 
hearings as it deems necessary to determine whether the prices com- 
plained of are in violation of this rule. 

Rule 5. — The schedule of credit attached hereto marked Appendix I 
"B" is hereby adopted by the petroleum industry as a uniform basis 
of credit to be applicable to all deliveries made after the effective date 
of this Code. The granting of a longer term of credit or a larger rate 
of discount by any refiner, distributor, jobber, wholesaler, or retailer 
than that allowed by this schedule shall constitute an unfair method 
of competition. 

Credit conditions of contracts made prior to the effective date of 
this Code are excepted from the provisions of this rule. 

Rule 6. — Inasmuch as there are firms and corporations in the petro- 
leum industry who severally or through firms and corporations owned 
or controlled, constitute and comprise a complete or integrated unit 
in such industry or produce and refine petroleum and market the 



157 

products manufactured therefrom, the business thereof shall be so 
conducted that the several branches of this industry, viz; producing 
of petroleum, refining, and marketing of refined products may be 
carried on upon a profitable basis and that no one or more of the 
said branches shall obtain or receive excessive or disproportionate gain 
or profit therefrom to the exclusion of any other branch of this 
industry. 

Rule 7. — Refiners, distributors, jobbers, wholesalers, or retailers 
shall not hereafter sell, lease, loan, or otherwise furnish to consumers 
of petroleum products or to anyone engaged in the sale of petroleum 
products at retail, any pumps, tanks, air compressors, greasing 
equipment or guns, lubsters, or other equipment or accessories 
(excepting only pump globes and the usual advertising signs, for the 
storage, display, vending, delivering, or consumption of petroleum 
products) , except as otherwise provided in paragraph 3 of this rule. 
Notwithstanding the prohibition hereinabove contained, any coop- 
erative society, association, or corporation of the type described in 
Rule 29 of this Article shall be permitted to purchase for cooperative 
distribution to any member or members thereof, equipment of the 
kind hereinabove described, intended for exclusive use by such 
member or members. 

If equipment of this kind, type, or description hereinbefore men- 
tioned now in operation becomes damaged, destroyed, or worn out, it 
shall not be replaced by any refiner, distributor, jobber, or wholesaler. 

The equipment of the kind, type, or description hereinbefore men- 
tioned, furnished, loaned, or leased before June 15, 1933, by any 
refiner, distributor, jobber, or wholesaler to or installed with any 
retailer or consumer shall, at the expiration of any contractural 
relation, and on the request of such retailer or consumer, be sold by 
such refiner, distributor, jobber, or wholesaler to such retailer or con- 
sumer, or, in the absence of a sale of such retailer or consumer as 
herein provided, shall be sold by the refiner, distributor, jobber, or 
wholesaler, who has made the loan, to any other refiner, distributor, 
jobber, or wholesaler who is about to begin supplying petroleum 
products to such retailer or consumer, on the request of such other 
refiner, distributor, jobber, or wholesaler at the original invoice price 
plus actual cost of installation, less a depreciation of 15% per annum, 
but in no event at a price lower than that fixed in the schedule hereto 
attached, marked Appendix "A". In the event of a purchase as 
herein provided by such other refiner, distributor, jobber, or whole- 
saler, such equipment may be loaned, leased, or licensed to the 
retailer or consumer at such location by any new supplier subse- 
quently acquiring title thereto. 

This rule does not apply to the sale of equipment by the manufac- 
turer thereof where such sale is not conditioned upon the purchase of 
use of petroleum products. This rule does not apply to special equip- 
ment used in connection with the sale and distribution of propane, 
butane, and other liquefied petroleum gases. 

Rule 8. — Refiners, distributors, jobbers, wholesalers, or retailers 
shall not construct, repair, lease, loan, or furnish driveways, buildings, 
canopies, air compressors, grease lifts or pits, grease equipment, grease 
guns, air towers, light poles, flood lights, material for driveways, 
buildings, or canopies, or any other equipment of any character 
whatsoever in connection with service stations or the storage, display, 



158 

or sale or consumption of petroleum products (excepting only pump 
globes and the usual advertising signs and except as provided in Rule 
7 of this Article) for or to anyone engaged in the sale or delivery of 
petroleum products to consumers or for or to consumers. 

Nothing contained in Rules 7 and 8 of this Code shall prohibit 
refiners, distributors, jobbers, or wholesalers or retailers from installing 
at or furnishing or equipping with any of the devices mentioned in 
Rules 7 and 8 any station or place where petroleum products are sold 
to consumers, which station or place is owned, in fee by such refiner, 
distributor, jobber, or wholesaler, or held by such refiner, distributor, 
jobber, or wholesaler under a valid and binding lease, and at the time 
the lease was executed the leased premises were not improved with 
any building or other facility or equipment for the sale or storage of 
petroleum products, or held by such refiner, distributor, jobber, or 
wholesaler under a valid and binding lease for a period of at least 
five years, which lease provides for a substantial rental not determined 
by the volume of petroleum products sold at the premises and which 
does not contain any provision permitting either party thereto to 
cancel or terminate it or the term thereby granted before the expira- 
tion of five years from the beginning of such term. 

Nothing contained in Rule 8 shall prohibit any individual from set- 
ting up a station or place for the sale and distribution of petroleum 
products and from furnisliing his own equipment at his own expense. 

Rule 9. — Refiners, distributors, jobbers, or wholesalers shall not 
make any repairs to any equipment of any kind owned by retailers 
or consumers; and shall not make any repairs to any equipment now 
loaned or leased to or installed with retailers or consumers which 
necessitates the removal from the premises of the equipment in order 
to effect the repairs. 

Refiners, distributors, jobbers, or wholesalers may make any ordi- 
nary repaii's to any equipment now loaned or leased or otherwise 
furnished to retailers or consumers, provided such repairs can be made 
without the removal of such equipment from the premises. 

Rule 10. — Refiners, distributors, jobbers, or wholesalers, shall not 
do any painting, nor furnish any paint free, or sell any paint for or to 
consumers, or for or to retailers, except for pumps through which the 
products of the refiner, distributor, jobber, or wholesaler are sold and 
except for usual advertising signs. Any new supplier shall assume the 
obligation of painting out colors identifying previous suppliers of the 
retailers or of anyone selling petroleum products to consumers wdth 
some neutralizing color other than that customarily used to identify 
places through which the products of the refiner, distributor, jobber, 
or wholesaler doing the painting are sold or dispensed. Before any 
refiner, distributor, jobber, or wholesaler paints over any sign or color 
of another refiner, distributor, jobber, or wholesaler, it shall com- 
municate wdth the refiner, distributor, jobber, or wholesaler whose 
signs or colors are involved inquiring whether such refiner, distributor, 
jobber, or wholesaler has any wiitten contract which would be violated 
by such proposed painting. Any refiner, distributor, jobber, or whole- 
saler to whom such inquiry is presented shall respond thereto within 
ten days from date of notice giving the information requested and if 
such proposed painting would violate any contract which it holds 
shall offer to submit the contract for inspection at its oflSce. If such 
proposed painting would violate the contract so submitted, the paint- 
ing shall not be done. 



159 

Refiners, distributors, jobbers, or wholesalers may sell pamt direct 
to any other refiner, distributor, jobber, or wholesaler. Nothing here- 
inabove contained shall prevent any cooperative society, association, 
or corporation of the type defined in Rule 29 of this Article, from buy- 
ing paints for cooperative distribution to any member or members 
thereof, provided that the purchase or sale of such paints shall not 
be conditioned upon the purchase or sale of petroleum products. 

Rule 11. — Except in such cases as constitute exceptions to the pro- 
hibitions contained in Rules 7 and 8 of this Article, refiners, dis- 
tributors, jobbers, or wholesalers shall not lend, lease, or otherwise 
furnish any equipment of any character, whatsoever, except trade- 
marked pump globes and other usual advertising devices, to anyone 
purchasing or receiving petroleum products by tank car, tank barge, 
truck train, or pipe line or to anyone selling petroleum products for 
resale or consumption. 

Rule 12. — When any pump, tank, or other device for the storage, 
display, consumption, handUng, or sale of naphtha, gasoline, motor 
fuel, or lubricating oil, bears the name, trade mark, or trade name of 
any person, firm, association, or corporation engaged in the manufac- 
ture or sale of any such commodity, no other person, firm, association, 
or corporation shall deUver into or deliver for sale from such pump, 
tank, or other device, or any tank or other container connected there- 
with, any naphtha, gasohne, motor fuel, or lubricating oil, other than 
that manufactured, sold, or distributed by the person, firm, associa- 
tion, or corporation whose name, trade mark or trade name is so 
affixed. No person, firm, association, or corporation shall in any way 
knowingly be a party to the substitution of one grade or brand of 
naphtha, gasoline, motor fuel, or lubricating oil, for another. 

Rule 13. — Refiners, distributors, jobbers, or wholesalers, shall not 
loan money to retailers or others engaged in the sale of petroleum 
products, or to consumers, for any purpose whatsoever and shall not 
extend any credit to any retailer or to anyone engaged in selling pe- 
troleum products to consumers except for merchandise sold for resale. 
Refiners, distributors, jobbers, or wholesalers shall not pay for or reim- 
burse to any retailer or consumer, either directly or indirectly any 
property tax, privilege tax, Hcense fee or tax, inspection fee or tax, 
chain-store tax, or any other charge, tax, or impost levied or assessed 
by any taxing authority upon any retailer or consumer in connection 
with the operation of any place or facility for the sale of petroleum 
products, nor advance money for the same. 

Rule llf.. — Refiners, distributors, jobbers, or wholesalers shall not 
pay rentals or otherwise pay for the privilege of displaying advertising 
on premises where naphtha, motor fuel, lubricating oil, grease, kero- 
sene, or heating oil are sold. 

Rule 15. — No refiner, distributor, jobber, wholesaler, or retailer or 
other person engaged in the sale of petroleum shall knowingly induce, 
attempt to induce, or assist a party to break a then existing written 
contract for the sale of petroleum products or a then existing lease of 
the premises used for the sale of petroleum products between that 
party and another. 

No refiner, distributor, jobber, wholesaler, retailer, or other person 
engaged in the sale of petroleum products shall sell or deliver any 
naphtha, gasoline, motor fuel, lubricating oil, grease, kerosene, or 



160 

heating oil to anyone knowing that such sale or delivery will violate 
or prevent the performance of a then existing written contract between 
the person to whom the sale or delivery is made and another. 

No contracts in violation of this code are protected under this rule. 
Nothing herein contained shall preclude the sale or delivery of any 
naphtha, gasoline, motor fuel, lubricating oil, grease, kerosene, or 
heating oil to any person who justifiably refuses further compliance 
with any existing written contract. 

Rule 16. — Lotteries, prizes, wheels of fortune, or other games of 
chance shall not be used in connection with the sale of petroleum 
products. 

Bute 17. — Except by permission of the Planning and Coordination 
Committee, refiners, distributors, jobbers, wholesalers, retailers, and 
others engaged in the sale of petroleum products shall not give away 
oil, premiums, trading stamps, free goods, or other things of value, 
or grant any special inducement in connection with the sale of petro- 
leum products. 

Rule 18. — Except by permission of the Planning and Coordination 
Committee, gasoline shall not be sold or delivered from tank wagons 
or trucks to motor vehicles except in emergency cases. 

Rule 19. — Pending decision by the Federal Trade Commission as 
to whether the lease and agency, lease and license methods of mar- 
keting of petroleum products constitute an unfair trade practice: 

(a) No new contract shall be written under either method, 

(b) Any such contracts now in effect shall not be renewed for a 
period exceeding one year, and the cancellation privilege shall be on 
notice not exceeding thirty days, 

(c) Provisions of Rules 7 and 8 shall apply in all instances to existing 
lease and agency and lease and license contracts, and to renewals, as 
above defined, 

(d) Insofar as lease and agency and lease and license agreements 
are concerned, the provisions of Rule 15 shall not apply to soliciting 
the sale and purchase of petroleum products, and 

(e) Should the Federal Trade Commission fail to render a final 
decision on the validity of lease and agency and lease and license 
agreements within 60 days of the effective date of this code, the 
President, or agency designated by him, may make a final decision pro- 
hibiting such marketing methods, or authorizing them without con- 
dition or upon such conditions as he or it may prescribe ; or the Presi- 
dent or agency designated by him may, in his or its discretion, 
temporarily prohibit the use of such marketing methods pending the 
decision of the Federal courts, or he or it may temporarily authorize 
such methods pending decision of the Commission and of the courts, 
either without condition or upon such conditions as he or it may 
prescribe. 

Rule 20.- — Refiners, distributors, jobbers, or wholesalers may own 
service or filling stations or sites for same and may fully equip such 
stations or sites and may lease, operate, or license such stations or 
grant a license to anyone to operate such stations for the distribution 
of petroleum products manufactured or sold by such refiner, dis- 
tributor, jobber, or wholesaler, or such refiner, distributor, jobber, or 
wholesaler may employ anyone as agent of such refiner, distributor, 
jobber, or wholesaler for the sale of petroleum products thereat. 



161 

Rule 21. — No one shall make any delivery of naphtha, gasoline, 
motor fuel, kerosene, range oil, lubricating oil, or heating oil at any 
refinery, terminal, or bulk plant to a reseller into any wagon, truck, 
tank wagon, or tank truck owned or operated by or for such reseller. 
The term "reseller" as herein used shall not be construed to include 
any agent selling such commodities on a commission basis. De- 
liveries may be made in exchange for similar commodities received by 
the person making the deliveries from the person to or for whom the 
delivery is made. 

Nothing in this rule contained shall apply to deliveries made to 
bona fide jobbers either in their own vehicles, or for their account, 
from refineries, terminals, or bulk plants. 

Rule 22: — -Refiners, distributors, jobbers, wholesalers, or retailers 
shall not render any burner service in connection with the sale of 
heating oils and fuel oils unless a fair and reasonable charge is made 
for such service, which in no event shall be less than $10.00 per year 
and an additional charge made for the replacement of any parts at 
not less than their reasonable cost. Nor shall any refinery, dis- 
tributor, jobber, wholesaler, or retailer grant a commission of any 
kind to any person other than a regular employee of such refiner, 
distributor, jobber, wholesaler, or retailer in connection with such 
sales unless there is a contract between such refiner, distributor, 
jobber, wholesaler, or retailer and a dealer, distributor, or manufac- 
turer of oil burners providing for the payment of a commission to the 
latter for the sale of heating oils and fuel oils to oil burner users where 
such sales are evidenced by signed contracts. This rule is not to be 
construed to prohibit advisory service. 

Refiners, distributors, jobbers, wholesalers, or retailers shall not 
sell to consumers of heating oils and fuel oils for delivery by tank 
wagon or tank truck on a contractual basis for a period exceeding 
twelve months. 

No refiners, distributors, jobbers, wholesalers, or retailers shall 
knowingly sell any heating oil or fuel oil to consumers in tank car lots 
unless said consumers have facilities for receiving and storing tank 
car lots. 

Rule 23. — Refiners, distributors, jobbers, wholesalers, and retailers 
shall permit any duly authorized employee, agent, or representative 
of the Planning and Coordination Committee to make any inspection 
or examination of books, records, contracts, plants, or stocks of mer- 
chandise to determine if there has been any failure to comply with the 
provisions of this Code or any failure of the refiner, distributor, 
wholesaler, or retailer, or by any other person, firm, or corporation to 
pay any tax required to be paid because of the receipt, sale, or use of 
any naphtha, gasoline, motor fuel, lubricating oil, greases, kerosene, 
range oil, heating oil, or any other petroleum product. 

Rule 24. — Evasion of taxes in the sale of petroleum products gives 
to evaders an undue and unlawful advantage over legitimate marketers 
and is unfair competition within the meaning of the National In- 
dustrial Recovery Act. 

Rule 25. — The broadcasting or publishing, in any manner, of a claim, 
representation, or implication which leads to a false or incorrect con- 
clusion in regard to the goods, prices, or service of the advertiser, or 
in regard to the goods, prices, or services of a competitor, or which 
lays false claims to a policy or continuing practice of generally under- 



162 

selling competitors, is an unfair and uneconomic practice and is 
prohibited. 

Rule 26. — In all sales of trade-marked or branded petroleum products 
for resale, refiners, distributors, jobbers, or wholesalers may, by con- 
tract, require purchasers to sell at prices therein designated for such 
resale; and may further require that if such products are thereafter 
sold by such purchaser for resale, that the original purchaser shall 
incorporate a similar provision in the contract with its purchaser for 
resale. 

Any purchaser who agrees to sell any refined petroleum products at 
the prices designated therefor by the refiner, distributor, jobber, or 
wholesaler from whom purchased shall make all sales thereof at 
prices not less than those so designated. 

Rule 27. — The unauthorized use by any person, firm, or corporation 
of the trade mark, trade slogan, insignia, or emblem of any trade 
association in the petroleum industry, or the assertion or claim, by 
advertisement or otherAvise, by any person, firm, or corporation that 
he or it is a member of any such association when in fact not a member 
thereof, shall be an unfair trade practice. 

Rule 28. — The provisions of this Code shall not prevent an associa- 
tion, society, or corporation organized or incorporated on the coopera- 
tive plan under any law or any State, territory or District of Colum- 
bia or of the United States as defined in Rule 29 of Article 5 of this 
Code from paying patronage dividends to the members or stock- 
holders of such an organization in accordance with the provisions of 
the law, the articles of association, articles of incorporation, and/or 
by the laws of such association, society, or corporation, and the pay- 
ment of such patronage dividends by such cooperative organizations 
shall not be construed as a violation of this Code, nor shall the pay- 
ment or distribution of such dividends be construed under this Code 
as an unfair method of competition; it being specifically understood 
that such dividends shall not be paid to nonmembers or nonstock- 
holders. 

Rule 29. — All Farm Cooperative Societies Association and/or Cor- 
porations organized under the laws of any state, territory, or District 
of Columbia or of the United States, membership in which is restricted 
to persons whose chief source of livelihood is farming or other coopera- 
tives organized and existing on July 1, 1933, and which comply with 
paragraph 12, section 103, of the revenue act of 1932, and which dis- 
tribute their patronage dividends to such members only, shall be 
exempted from certain provisions of the Article 5 as hereinbefore 
specified; provided, however, they shall be otherwise fully subject to 
the provisions of Article 5. 

Rule 30. — This Code shall not apply to contracts actually made 
prior to the date on which this Code is formally approved . Upon the 
effective date of this Code it shall apply to all such contracts as soon 
as any cancellation or termination thereof can be legally accompHshed. 

This Code shall apply to all contracts made after the date on which 
this Code is formally approved, and shall apply to all renewals or 
extensions made after that date of contracts made prior thereto. 

The provisions of this Code shall not apply to transactions between 
subsidiary or affiliated companies. Companies shall be considered to 
be affiliated when one owns the majority of the outstanding capital 
stock of the other, and when the majority of the outstanding capital 
stock of each is held by the same individual, corporation, or associa- 



163 

tion, or, in the case of cooperative associations as defined in Rule 29 
of Article 5 of this Code, when the local associations collectively own 
the majority of the outstanding stock of the central cooperative asso- 
ciation. The parent companies owning the majority of stock in other 
companies shall be responsible for the observance of such subsidiary 
or affiliated company of the provisions of the rules of this Code. 

The provisions of this Code shall not apply in respect to sales made 
in the tJnited States for export to foreign countries. 

Rule 31. — A violation of any of the rules of this Code shall consti- 
tute an unfair method of competition. 

In the event any rule of this Code, or part of any such rule, should 
be disapproved or held invalid, such action shall in no way affect any 
other rule or part thereof. 

Article VI — Transportation 

The transportation subcommittee of the Planning and Coordina- 
tion Committee shall investigate transportation practices and rates, 
and shall from time to time recommend to the President such action 
as may be appropriate to be taken under the National Industrial 
Recovery Act, or otherwise. 

Article VII — Organization 

Section 1. The administrative machinery for the effectuation of 
this Code shall consist of: 

(a) The Planning and Coordination Committee, representing the 
petroleum industry and the National Recovery Administration. 

(b) A Federal Agency to be designated by the President. 

Sec. 2. The Planning and Coordination Committee shall consist of 
fifteen members, three of whom (without vote) shall be representa- 
tives of the National Recovery Administration and appointed by the 
President and twelve of whom shall be representatives of the petro- 
leum industry, and, for purposes of immediate organization, ap- 
pointed by the President from nominations made by a group or groups 
within the industry in such manner as may be prescribed by the 
President. 

Sec. 3. The Planning and Coordination Committee is set up to co- 
operate with the Administrator as a planning and fair-practice agency 
for the petroleum industry. Such agency may from time to time pre- 
sent to the Administrator recommendations which will tend to effec- 
tuate the operation of the provisions of this Code and the policy 
of the National Recovery Act and is charged in particular with 
endeavoring to promote the fuUest possible cooperation with state 
regulatory bodies. 

Sec. 4. The Planning and Coordination Committee shall have a 
Chairman from its own membership and the following working tech- 
nical subcommittees: 

(a) Statistical Committee. 

(b) Production Committee. 

(c) Refinery Committee. 

(d) Marketing Committee. 

(e) Accounting Committee. 

(f) Labor Committee. 

(g) Adjustment Committee, 
(h) Transportation Committee. 



164 

Sec. 5. The Federal Agency designated by the President shall make 
such estimates of petroleum requirements and such recommendations, 
allocations, and inventories as may be required for the effectuation of 
this Code. 

Sec. 6. In order to provide necessary data upon which to base its 
studies for the purposes of this Code, the Federal Agency designated 
by the President and the Planning and Coordination Committee are 
empowered to call upon the industry for the necessary statistical and 
other reports and any refusal to supply such reports is a violation of 
this Code. 



APPENDICES 
Appendix A 

Schedule of Equipment Prices to be Used as a Basis of Purchase or 
Sale Between Oil Companies 

BLIND GASOLINE PUMPS 

Net 
Lower Than 

All makes of Blind Pumps, including Duplex and all sizes 1 to 5 gallons 

capacity $20. 00 

VISIBLE PUMPS 

5-gallon dry or wet hose Visible, 10- or 15-gallon Dry Hose Visible. Dual 
Bowl Visible (all types), 5-gallon blind pumps with 5 or 10 Visible 
attachment, Remote Control Visible Air-lift Visible: 

AU of the above 20.00 

10- and 15-gallon Visible Web Hose, all makes 40. 00 

10- or 15-gallon Visible Web Hose, electric power operated 50. 00 

ELECTRIC METER PUMPS 

Electric Flow Meter Pumps, with or without air separator 45. 00 

Electric Displacement Meter pumps, without air separator 70. 00 

Electric Displacement Meter Pumps, with air separator 85. 00 

On any of the above pumps furnished in Twin type the price shall 
be double that of the single unit. 

GASOLINE BUGGIES OR WHEEL TANKS 

Any capacity , identified by Underwriters Label 50. 00 

Same as above, not identified by Underwriters 25. 00 

SKID TANKS WITH PUMPS 

Skid tanks used for gasoline, kerosene, or distillate, up to 550-gallon 

capacity, equipped with pump, any type 25. 00 

COMBINATION GASOLINE OR KEROSENE UNDERGROUND TANKS WITH 

PUMPS 

100- to 200-gallon capacity, with 1 gal. or rotary pump 25. 00 

MISCELLANEOUS PUMP EQUIPMENT 

Hydraulic Systems, Drop Cylinder Jobs, Remote Control Systems, 
and any other special type of equipment, including airport equipment 
and equipment used to serve marine trade, etc., shall be considered 
special equipment. Purchase or sale price shall be arrived at by 
joint appraisal on the premises. 

UNDERGROUND TANKS 

Underground Tanks shall be bought or sold at prices shown below, 
which include all installation costs, labor, materials, freight, etc., up 

(165) 



166 

to and including the installation of the pump itself (value of pump not 
included) on the following basis: 

280-gallon tank $35. 00 

SSO-gallon tank 50. 00 

1,000-gallon tank 75. 00 

2,000-gallon tank 100. 00 

These prices are for tanks of any specification, galvanized or black 
steel as now installed. 

Capacities of tanks shown above are normal sizes and may vary 
10% more or less. For each additional pump installed on one tank 
add $10.00 for installation cost. 

Where the original installation of the tank and piping involved the 
removal and replacing of concrete, an allowance of 25^. per square 
foot, with a maximum allowance of 60 square feet for each tank and 60 
square feet for pipe trench, shall be added to price of the respective 
size tank. 

Where tanks are installed under unusual conditions due to ordinances 
or regulatory restriction which resulted in excessive costs, the purchase 
or sale will be based on the actual cost of such installation less 10% per 
annum depreciation on equipment and material used plus actual labor 
cost; 

Odd-size tanks not covered by the above classification shall be 
bought and sold at a price interpolated between those specified. 

Underground tanks, and any part of the underground installation 
in connection therewith, ma}' be repaired or replaced by the owner 
thereof. If replaced, the new tank shall be of the same capacity as 
original and the original removed from the premises or made unfit for 
use. 

AUTOMOBILE LIFTS, RACKS, AND PITS 

Automobile lifts of plunger type wdll be bought or sold at the invoice 
price date of seller's purchase, plus freight, less 15% per annum depreci- 
ation from date of invoice, plus a flat installation charge of $40.00, plus 
an allowance for concrete, if any, installed by owner of lift, up to a 
maximum of 400 square feet, based on 20 cents per square foot. 

Portable steel automobile lifts, grease and wash racks will be 
bought or sold on invoice price date of seller's purchase plus freight, 
less 25% for depreciation and obsolescence per annum from date of 
invoice. No allowance for installation cost. 

Pits and nonportable racks will be bought or sold on a basis of joint 
appraisal on the premises at time of exchange. 

COMPRESSORS 

All air compressors will be bought or sold on a basis of invoice price 
date of seller's purchase, plus freight, less 25% per annum depreciation 
and obsolescence from date of invoice. No installation cost considered. 

KEROSENE EQUIPMENT 

Kerosene equipment shall be bought or sold at the following prices 
for the respective sizes and classes. 

60- to 65-gallon square kerosene tank equipped with pump $12. 00 

110- to 112-gallon square kerosene tank equipped with pump 15. 00 

150- to 165-gaUon square kerosene tank equipped with pump 25. 00 

200- to 220-gallon square kerosene tank equipped with pump 30. 00 



167 

ROUND PORTABLE KEROSENE TANKS 

Equipped with pump. 
60- to 120-gallon capacity $6. 00 

RECTANGULAR KEROSENE TANKS 

Equipped with pump. 
60- to 65-gallon capacity 12. 00 

CELLAR KEROSENE OUTFITS 

Equipped with stand pipe and pump. 

60- to 120-gallon capacity installed each__ 40. 00 

250- to 270-gallon capacity installed each.. 70. 00 

60- to 120-gallon miscellaneous faucet tanks and tin pump tanks 2. 00 

LUBRICATING OIL EQUIPMENT 

50-gallon round lubricating oil tank 3. 00 

60-gallon square lubricating oil tank 3. 00 

15-gallon rectangular lubricating oil tank 3. 00 

30-gallon rectangular lubricating oil tank 7. 00 

60-gallon rectangular lubricating oil tank 9. 00 

60-gallon 2-compartment lubricating oil tank 10. 00 

90-gallon 3-compartment lubricating oil tank 15. 00 

Any of the above lubricating-oil equipment, equipped with meter 
add $1.50 to the above price. 

1-quart oil bottles each.. $0. 10 

Tray for l-quart oil bottles .25 

1-quart barrel pumps 1. 00 

Miscellaneous lubricating equipment such as air systems, built-in 
installations, underground installations, miscellaneous portable equip- 
ment, etc., not specifically mentioned in the above lubricating-oil 
equipment shall be considered special and the purchase or sale price 
shall be arrived at by joint appraisal on the premises. 

GREASE EQUIPMENT 

25-lb. grease bucket or kit without motor $3. 00 

Same as above with motor . 7. 00 

100-lb. grease outfit without meter 3. 00 

Same as above with meter 7. 00 

No charge for dolly in connection with the 100-lb. grease outfit. 

Miscellaneous grease equipment such as built-in installations, 
portable equipment, power guns, special portable guns, hand guns, 
grease gun boards, etc., not specifically mentioned in the above grease 
equipment shall be considered special and the purchase or sale price 
shall be arrived at by joint appraisal on the premises. 

Where grease boards furnished by supplier carry trade mark 
advertising which cannot be readily effaced by any practical means, 
supplier shall remove from the premises. 

MISCELLANEOUS EQUIPMENT 

Air and water standards, flood lights, and lamp posts or any equip- 
ment not specifically mentioned herein will be bought or sold on a 
basis of joint appraisal on the premises at the time of exchange. 



168 

Sign posts will be considered as property of oil company and shall 
be removed. 

All signs owned by oil company may be bought or sold by joint 
appraisal. 

ARBITRATION 

In case any dispute arises over prices and values of all the respective 
equipment herein mentioned which do not definitely state a price, 
the suppliers involved shall choose an arbitrator who shall be a 
disinterested representative from some other oil company in the 
immediate vicinity, to whom the suppliers shall present their case. 
The decision of the arbitrator chosen shall be final. 



Appendix B 



MAXIMUM CREDIT TERMS 



Credit Terms 



(1) Gasoline and Kerosene Sales: 

In tank-car and barge shipments 



In tank-wagon deliveries. 



Service-station deliveries- 



Coupon books, in denominations of not less than 
ten dollars, may be sold at face value, without 
discount, for cash, or on credit payable net in 
thirty days. Coupon books issued by any com- 
pany may be redeemed by any retail outlet 
where the trade-marked products of that company 
are sold. 
Truck-Train Deliveries from refineries and terminals 

or bulk plants to jobbers' bulk plants (3,500 gallons 

or over). 



One percent 10 days 
from date of shipment, 
net 30 days. One per- 
cent on sight draft 
payments. 

Load-to-load, for net 
15th proximo. No 
cash discount. 

Coupons or payments, 
net in thirty days. 



Truck-Train Deliveries: 

From refineries and terminals or bulk plants to 
jobbers' bulk plants (3,500 gallons or over). 



In Tank- Wagon Deliveries: 
To resellers 



One percent 10 days 
from date of shipment, 
net 30 days. One 
percent on sight draft 
payments. 



(2) Gas Oil and Fuel Oil Sales: 

In tank-car or barge shipments, or deliveries to ships' 
burners. 



To consumers. 



One percent 10 days 
from date of shipment, 
net 30 days. One 
percent on sight draft 
payments. 

One percent 10 days 
from date of shipment, 
net 30. One percent 
on sight draft pay- 
ments. 

Load-to-load or net 15th 

proximo. 
Net 15th proximo. 



169 

(3) Lubrica ting-Oil and Grease Sales: 

In tank-car and drum-car shipments: 

Unbranded oils and greases One percent 1 days 

from date of shipment, 
net 30 days or 30- 
60-90-day trade ac- 
ceptances. 

Branded oils and greases One percent 10 days 

from date of shipment, 
net 30 days, or 30- 
60-90-day trade ac- 
ceptance. 
L.C.L. Shipments: 

All oils and greases.. One percent 10 days or 

net 15th proximo. 
Truck and tank-wagon deliveries: 

All oils and greases One percent 10 days, 

net 15th proximo. 

Service-Station Deliveries Coupons or payments 

net in 30 days. 

o 



i 



Approved Code No. 11 
CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

As Approved on August 19, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance Math the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval a Code of 
Fair Competition for the Iron and Steel Industry, and hearings hav- 
ing been held thereon and the administrator having rendered Ms 
report together wnth his recommendations and finding with respect 
thereto, and the administrator having found that the said code of 
fair competition complies in all respects with the pertinent provisions 
of Title I of said Act and that the requirements of clauses (1) and 
(2) of subsection (a) of Section 3 of the said Act have been met: 

Now, therefore, I, Franklin D. Roosevelt, President of the United 
States, pursuant to the authority vested in me by Title I of the 
National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the administrator and do order that the said code of 
fair competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

August 19, 1933. 

(171) 



August 19, 1933. 
The President, 

The White House. 
My Dear Mr. President: I have the honor to submit and recom- 
mend for your approval, the Code of Fair Competition of the Iron 
and Steel Industry. The code has been approved by the Labor 
Advisory Board, the Consumers' Advisory Board and the Industrial 
Advisory Board. 

An analysis of the provisions of the code has been made by the 
Administration; and a complete report is being formulated for trans- 
mission to you. I find that the code complies with the requirements 
of clauses (1) and (2), subsection (a) of Section 3 of the National 
Industrial Recovery Act. 

I am, my dear Mr. President, 
Very sincerely yours, 

Hugh S. Johnson, 

Administrator. 
(172) 



REPORT OF DEPUTY ADMINISTRATOR 

The American Iron and Steel Institute, which presented the code 
July 15th, reported that signers of the code then represented 90% 
of the total pig-iron and steel-ingot capacity in the United States and 
that it expected total signatories representing 95% of such capacity. 

Descriptive of the Industry 

The industry as defined in the code includes all those producing 
in the United States pig iron, iron or steel ingots, and rolled or drawn 
iron or steel products. Purposely excluded from the scope of the code 
are other operations and products of iron and steel producers, such 
as mining of iron ore and coal, transportation, production of cement 
and other byproducts, castings, and the bulk of forgings. Included, 
however, are some iron and steel products, not properly or fully 
described by the words "rolled or drawn," and which are processed 
after rolling or drawing by the producing company, such as spikes, 
tieplates, wire fencing, nails and staples, tin plate, and other coated 
products. 

The following statistics are from the Census of Manufactures, 1929, 
and 1931 Mimeographed Reports: 



Iron and steel industry (blast furnaces, steel works, 
and rolling mills) : 

Wage earners 

Total wages 

Wages per worker : 

Value of product-- 

Ratio of wages to value added by manufacture 

percent - 

All other manufacturing industries, wages per 

worker 



1923 



424, 900 

$697, 000, 000 

$1, 640 

4, 162, 000, 000 

54.0 

$1, 234 



1929 



420, 800 

$733, 000, 000 

$1, 742 

4, 137, 000, 000 

45.1 

$1, 293 



1931 



278, 100 

$358, 000, 000 

$1 287 

$1,714,000!000 

57.4 

$1,102 



It is significant that 1923 and not 1929 was the peak year for the 
industry in point of value of product, although the greatest production 
and wage payments were in 1929. Since then the industry has fully 
experienced the difficulties of the depression, its operating rate declin- 
ing to 15% and lower during late 1932 and early 1933. The low rate 
of operations coupled with low prices resulted in substantial operating 
losses for practically all companies. The industry operated over 50% 
capacity in July of this year, however. 

Attention is directed to the fact that many members of the code 
have been operating under its wage provisions since the middle of 
July, both as to minimum and higher rates. 

It should also be remarked that this industry has been a leader 
in the "share-the-work" movement since 1929. 

(173) 



174 

Summary and Discussion of Code Provisions 

collective bargaining 

The mandatory clauses of subsection (a) of Section 7, Title I, 
N.I.R.A., are stated without qualification. Section 2, Art. IV, of the 
original code and its companion Schedule relating to "Employee 
Representation Plans" were withdrawn at the hearing, prior to 
which these had been subjected to much criticism. 

EMPLOYMENT HOURS AND WAGES 

A full study of the hour and wage provisions of the code is con- 
tained in the Report of the Division of Economic Research and 
Planning, their summary of which is given below: 

The industrv employed 42L000 in 1929, 210,000 in 1932, and 
272,000 at the end of July 1933. The hours in the code should allow 
of a production without undue strain of about 3,580,000 tons per 
standard month, this being the half-way recovery point from the 
May 1933 level of 1,916,000 per standard month to the average of 
4,516,000 tons for 1929. This wih require 62,000,000 man-hours per 
month, or say, 65,000,000 to provide for seasonal peaks. This could 
be provided by 417,000 men on a 40-hour week. 

Experience shows that, on the average, 10% of the nominal working 
time is lost through voluntary absences, breakdown, inability to 
schedule operations perfectly, and lack of sufficient business for 
particular products to keep the departments for those pi-oducts busy 
all the time; that is, with a maximum work week of 40 hours the 
hours actually worked cannot average over 40 per week, 36 hours 
is the maximum effective work week, or 156 hours per month. 
65,000,000-^156=417,000. 

About 272,000 men were employed at the end of July and working, 
roughly, 43 hours a week. With a maximum 40-hour week and 36 
hours effective, it is estimated that this number would be increased 
to about 325,000. 

Reemployment, in this industry, with its subdivisions and speciali- 
zation of labor, can be much larger than would at first appear from 
the average hours worked. This is because many men will be working 
considerably longer than the average, and many considerably shorter. 
As those working longer are brought dosvn to the code hours, addi- 
tional men have to be taken on. But these groups working shorter 
hours cannot in general double up and release men to the other groups; 
there are limits to a " share-the-work " movement in the steel industry. 

The 8-hour day and 40-hour week will create a great many jobs 
in cases like the following: 

(a) Mill working one 10-hour shift 6 days a week, total of 60 mill- 
hours per week. The only practicable readjustment would be two 
8-hour shifts working 4 or 5 days a week, giving a total of 64 or 80 
mill-hours. The number of jobs would be doubled. 

(b) Mill working two 10-hour shifts 6 days a week, giving total of 
120 mill-hours. The practical readjustment would be three 8-hour 
shifts working 5 days a week, giving a total of 120 mill-hours. The 
number of jobs would be increased 50%. 






175 

Wages are about half the vahie added by manufacture. 

1929 

Value of steel products $3,366,000,000 

Raw materials 1, 904, 000, 000 

Value added, steel 1, 462, 000, 000 

Value added, iron and steel 1, 623, 000, 000 

Wages (including wages of blast-furnace workers) 733, 000, 000 

Ratio to value added percent-. 45 

Wage rates were much better than average manufacturing wage 
rates, in the period 1921-1930, but were barely up to the rates paid 
in those industries requiring skilled labor. Steel wages dropped 
further than others in 1931 and 1932, and fell definitely below skilled 
wage rates in other industries. Unskilled wage earners (laborers) 
averaged about 41.4^ an hour in 1929. The code minimum rates 
average about 39.5^ in the Pittsburgh and Great Lakes regions 
(average on weighted basis), 35^ in the Eastern Region, and 26.5^ 
in the Southern. Compared with 1929, these vary from a decrease 
of 16% in the East to an increase of 13% in the South. The Code 
minimum wages in the Pittsburgh, Great Lakes, and Middle West 
Regions will be 10% below the 1929 rate. In relation to early 1933, 
the code minima represent advances of from 22% (Pittsburgh) to 
anywhere from 35%, to 80% (the South). 

The proposed minimum wages vary from 25^ per hour in the 
South to 40(/^ in Pittsburgh. The necessity for the lower wage in 
the South lies in the longer freight hauls to principal interior markets, 
and also in a high mining cost in terms of labor. One man-hour in 
Alabama produces 0.533 ton of crude iron ore of 20.1% iron con- 
tent, or 0.107 ton of iron, while one man-hour in Minnesota pro- 
duces 1.132 tons of crude iron ore of 49.5% iron content, or 0.56 
ton of iron. (Figures for 1932; special study by Bureau of Mines.) 
One man-hour produces 0.413 ton of coal in Alabama, 0.598 in 
Pennsylvania, 0.810 in Illinois, and 0.731 in W^est Virginia. In 
addition, the Alabama coal has to be washed, which reduces the net 
yield to 0.37 ton. 

Another difficulty facing the South is imports. The South nor- 
mally ships a large part of its output to the Atlantic, Gulf, and 
Pacific seaboard. 

Both these difficulties are reflected in income account and balance 
sheets, which reveal a definitely poorer financial status than the 
Northern companies. One Southern company is in default on bond 
interest and sinking fund. 

The decline in wage rates during the depression has been partially 
cushioned by the concurrent decline in living costs. The 1929 
average common labor rate was 41.4^ and the 1933 rate about 31?f 
(estimated on basis of common labor entrance rates of July 1, 1932, 
which were 31.84, and U.S. Steel recent minimum of 33^). Living 
costs early in 1933 were below 70 in terms of 1929 = 100, so that the 
31^-rate represented in actual purchasing power over 44^ an liour 
(31 -^.70 =44), or more than in 1929. 

The code minima, which average about 39^ an hour, represent about 
52^ an hour in 1929 purchasing power, taking the cost of living as 
75% of 1929, to allow for increased costs. 

While the hourly wages show up very well indeed on a I'eal wage 
basis, the weekly wages do not. Employees worked about 54 hours a 



176 

week in 1929 and often less than 26 in 1932 and early 1933. The 
unskilled average weekly wage was, therefore, about $22.40 in 1929 
($0,414 X 54) and $8.05 in 1932 and early 1933 ($0.31 X 26). (Unskilled 
workers may have worked longer hours than the average and so have 
earned more than the above; the National Industrial Conference 
Board reports unskilled average weekly earnings of $11.97 in the 
first four months of 1933.) 



Money 
wages for 
1929 pur- 
chasing 
power 



1. 1929 

2. Early 1933 

3. Early 1933 

4. July 1933.. 

5. Code 

6. Code 



Hourly 


Hours 


Weekly 


Cost of 


Real 


wages 


per week 


earnings 


living 


wages 


$0. 414 


54 


$22. 40 


100 


$22. 40 


.31 


26 


8.05 


70 


11.50 


.31 
.31 




11.97 
12.40 


70 

72 


17.10 
17.20 


40 


.39 


36 


14.05 


75 


18.70 


.39 


40 


15.60 


75 


20.80 



$22. 40 
15.70 
15.70 
16.10 
16.80 
16.80 



Note. — National Industrial Conference Board figure of $11.97 probably not comparable with others. 

It will be seen that working for 31^ an hour for 26 hours gives a 
weekly purchasing power of only $11.50 or but slightly more than 
half 1929. In July 1933 the average work week was above 40 hours. 
Average weeldy money wages were about $12.40 (before the 15% 
wage increase on July 15) which represents $17.20 in 1929 purchasing 
power. The code rates for 36- and 40-hour weeks, respectively, will 
give $14.05 and $15.60 in money wages and $18.70 and $20.80 in 
1929 purchasing power. 

Child Labor 

None of the members of the code shall employ in or about its 
plants in the Industry any person under 16 years of age. 

Maximum Hours for all Employees 

Not over 40 hours per week average in any 6 months' period. 

Not over 48 hours, or more than 6 days, in any one week. 

On and after November 1, 1933, if operating at 60% of capacity 
or more, not over 8 hours per day. 

(Exemptions — Executives, those in supervisory and technical work 
and their staffs, and emergency work.) 

The large number of different manufacturing processes, the depend- 
ence of each process upon various percentages of highly skilled 
workmen such as boss rollers and furnace men, and other craftsmen, 
and the physical hazards caused by untrained men all contribute to 
the real obstacles in the way of interchangeability of labor, reduction 
of working time, and absorption of unemployed workers in this 
industry. By systematic and consistent training methods, men will 
be provided for the highly skilled jobs. This will require some time, 
however, and meanwhile the provisions for averaging hours and for a 
48-hour maximum week have been provided to take care of seasonal 
and peak labor loads. While the foregoing applies principally to the 
highly skilled workers, it is applicable in lesser degree to the much 
larger class of semiskilled workers. ; 



177 

Minimum Rates of Pay foe Common Labor are as Follows for 
THE Wage Districts Indicated 

40jif PER HOUR 

Pittsburgh District Chicago District 

Youngstown Valley District Detroit-Toledo District 

North Ohio River District Colorado District 

Cleveland District 

(The above including approximately 60 percent of the industry.) 



Utah District 



39^ PER HOUR 
38^ PER HOUR 

Buffalo District Seattle District 



37^ PER HOUR 

Johnstown District Canton-Massillon-Mansfield Dis- 

Duluth District trict 

San Francisco District South Ohio River District 

Indiana-Illinois-St. Louis District 

35^ PER HOUR 

Eastern District (comprising ap- Kansas City District 
proximately north of the State Los Angeles District 
of Virginia and East of Altoona, 
Pennsylvania) 

27^ PER HOUR 

Birmingham District (Jefferson County, Alabama) 

25^ PER HOUR 

Southern District (all southeastern and south-central United States, 
except Jefferson County, Alabama) . 

(Exceptions: Apprentices and Learners.) 

All employees receiving on July 14th pay at a rate per hour in 
excess of the common-labor rates then in effect are to receive a rate 
of pay per hour which shall be at least 15% above that of July 14th, 
but not above similar rates in the same district paid by other members 
who have made the 15% increase. 

Piecework to yield on the average not less than the minimum 
rate per hour for common labor. 

While it is apparent from the foregoing summary by the Division 
of Economic Research and Planning that the industry as a whole 
through its wage increases has made a genuine contribution toward 
the objectives of National Industrial Recovery Act, nevertheless, it 
should be stated that the Bureau of Economic Research and Planning 
does not necessarily give approval to the continuation of the wage 
differentials in the code for the various districts but desires to study 
this subject further in the light of pertinent data not now available 
but which it will collect and examine during the 90-day period of 
observation. 

29847 296-132 34 2. 



178 

Exceptions from the hour and wage provisions will be subject to 
study and recommendations by the administrator and his representa- 
tives during the 90-day observation period. 

PRODUCTION AND PRICE PROVISIONS 

The production and price provisions of the code provide for a 
present limitation on the construction of new furnace capacity and 
possible future production control by the directors, both subject to 
the approval of the President of the United States; together with 
adherence to listed prices, subject to control by the directors, with 
notice of decisions of the directors to the President of the United 
States. Prices are to be listed for a considerable number of basing 
points and charged to include listed prices plus rail freight to the 
points of delivery. 

While the members of the industry and the industry advisor 
report that the scheme of the code involves no substantial change from 
present practices, a number of protests have been made against 
alleged changes in basing points and against the price provisions of 
the code as a whole. Protests have also been made against the control 
of deductions for transportation costs cheaper than all-rail, against 
the control of quantity discounts, and against the operation of through 
rail rates on products fabricated in transit. The protestants have not 
satisfactorily established their objections to the operation of the code. 

In view of the protests and the far-reaching effects of the provisions 
of the code, it seems wise to provide for a 90-day period of experi- 
mental observation of the operation of the code. This period will 
make it possible to insure that competitive conditions continue to 
exist in the markets for steel, that competitors and purchasers of steel 
receive adequate protection, and that the industry has adequate 
opportunities for reasonable stabilization of its business. For this 
purpose, the code as amended expressly provides that the operation 
of its provisions shall be subject to scrutim^ by the administrator of the 
Recovery Act, and one or two representatives appointed by him. 
These representatives may advise the directors about the desirability 
of modifying practices provided for in the code; and they may further 
recommend to the President the exercise of his reserved power to 
cancel the code. 

It is to be observed that in partial compensation for increased 
labor costs, the steel industry seems likely to derive substantial 
market advantages from the price-stabilization provisions of the 
code. While leaders in the industry indicate that they would gain 
no advantage by raising present prices, they evidently refer to pub- 
lished official base prices. Members of the industry have not, as 
is conceded, been able to secure these prices uniformly under the 
competitive conditions recently prevailing. On the other hand, it 
seems likely that these prices will be firmer, and result in substantial 
increases in profits, under the influence of provisions requiring publi- 
cation of base prices and prohibiting concessions contained in the 
code. Further, the mere elimination of credit abuses should greatly 
help the industry. Stabilization of prices may have a favorable 
effect on employment and business generally. On the other hand, 
the operation of the market influences in question must be subjected 
to careful observation by the representatives of the Administration. 



179 

Reports and Statistics 

As amended, the code provides for reports and statistics to be 
furnished the administrator on production, sales, conditions of em- 
ployment, prices, and other information necessary for the purpose of 
the code (Art. V, Sec. 1 ; Art. IX, Sec. 5; Sched. E, Sec. 13; Sched. H, 
Sec. M). 

Administration 

The code is to be administered by the Board of Directors of the 
American Iron and Steel Institute. As finally submitted, recognizing 
that questions of public interest are or may be involved, provision is 
made for the administrator and one or two of his representatives to 
attend meetings of the directors, secure information, and make 
recommendations relating to the administration of the code and the 
effectuation of Title I, National Industrial Recovery Act (Art. VI, 
Sec. 7). 

Findings _ • 
I have found that — • 

(a) The code complies with the pertinent provisions of Title I, 
National Industrial Recovery Act, including, without limitation, 
subsection (a) of Sec. 7, and subsection (b) of Sec. 10 thereof. 

(b) The American Iron and Steel Institute is truly representative 
of the industry and imposes no inequitable restrictions upon ad- 
missions to membership. 

(c) The code, as amended and finally submitted, imposes neces- 
sary conditions for the protection of consumers, competitors, and 
employees, will not permit monopolies or monopolistic practices, or 
eliminate or oppress small enterprises, and will not operate to dis- 
criminate against them. 

The code has been approved by the Labor Advisory Board, the 
Industrial Advisory Board, and the Consumers' Advisory Board. 

I have, therefore, recommended approval of the code, as amended 
and finally submitted for a period of 90 days, ae provided in Sec. 2 of 
Art. XII thereof. 

Respectfully submitted. 

K. M. Simpson, 
Deputy Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

Article I — Definitions 

Wlierever used in this code or in any schedule appertaining hereto 
the terms hereinafter in this Article and in Schedule E annexed hereto 
defined shall, unless the context shall otherwise clearly indicate, have 
the respective meanings hereinafter in this Article and in such Schedule 
E set forth. The definition of any such term in the singular shall 
apply to the use of such term in the plural and vice versa. 

Section 1. The term "the United States" means and includes all 
of the territory of the United States of America on the North American 
continent. 

Sec. 2. The term "the President" means the President of the 
United States of America. 

Sec. 3. The term "products" means only pig iron, iron or steel 
ingots, and the rolled or drawn iron or steel products which are gener- 
ally named in Schedule F to the code as at the time in effect and stand- 
ard Tee rails of more than 60 pounds per yard, angle bars and rail 
joints, or any of such products. 

Sec. 4. The term "the industry" means and includes the business 
of producing in the United States and selling products, or any of them. 

Sec. 5. The term "member of the industry" means and includes 
any person, firm, association, or corporation operating a plant or 
plants in the United States for the production of products, or any of 
them. 

Sec. 6. The term "the code" means and includes this code and all 
schedules annexed hereto as originally approved by the President and 
all amendments hereof and thereof made as hereinafter in Article XII 
provided. 

Sec. 7. The term "member of the code" means any member of the 
industry who shall have become a member of the code as hereinafter 
in Section 3 of Article III provided. 

Sec. 8. The term "the Institute" means American Iron and Steel 
Institute, a New York membership corporation. 

Sec. 9. The term "the board of directors" means the board of 
directors (as from time to time constituted) of the institute. 

Sec. 10. The term "the secretary" means the secretary of the 
institute at the time in office. 

Sec. 11. The term "the treasurer" means the treasurer of the 
institute at the time in office. 

Sec. 12. The term "unfair practice" means and includes any act 
described as an unfair practice in Schedule H annexed hereto. 

Sec. 13. Wlierever used in the code with reference to the industry 
or any member of the industry or any member of the code, unless the 
context shall otherwise clearly indicate. 

(a) The term "plant" means only a plant for the production of 
one or more products in the industry ; 

(181) 



182 

(b) The term "prices" includes only prices for products produced 
in the industry ; 

(c) The term "wages" includes only wages for labor performed in 
the industry ; 

(d) The term "labor" means only labor performed in the industry; 

(e) The term "hours of labor" or "hours of work" includes only 
hours of labor or hours of work in the industry ; and 

(f) The term "employee" means only an employee in the industry. 
Sec. 14. The term "the National Industrial Recovery Act" means 

the National Industrial Recovery Act as approved bv the President 
June 16, 1933. 

Sec. 15. The term "the effective date of the code" means the date 
on which the code shall have been approved by the President pursuant 
to the National Industrial Recovery Act. 

Sec. 16. The term "the administrator" means the administrator 
: appointed by the President under the National Industrial Recovery 
Act and at the time in office. 

Sec. 17. The term "the administration" means the agency estab- 
lished pursuant to the provisions of Section 2 of the National Industrial 
Recovery Act. 

Article II — Purpose of the Code 

Section 1. The code is adopted pursuant to Title I of the National 
Industrial Recovery Act. 

Sec. 2. The purpose of the code is to effectuate the policy of Title 
I of the National Industrial Recovery Act insofar as it is appHcable 
to the industry. 

Article III — Membership in the Code 

Section 1. It is of the essence of the code that all members of 
the industry which shall comply with the provisions of the code 
shall be entitled to participate in its benefits upon the terms and 
conditions set forth in the code. 

Sec. 2. Any member of the industry is eligible for membership in 
the code. 

Sec. 3. Any member of the industry desiring to become a member 
of the code may do so by signing and delivering to the secretary a 
letter substantially in the form set forth in Schedule A annexed hereto. 

Sec. 4. The rules and regulations in respect of meetings of members 
of the code are set forth in Schedule B annexed hereto. 

Article IV— Hours of Labor, Rates of Pay, and Other Condi- 
tions OF Employment 

Section 1. Pursuant to subsection (a) of Section 7 of the National 
Industrial Recovery Act and so long as the code shall be in effect, 
the code shall be subject to the following conditions: 

(1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; 



I 



183 

(2) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union 
or to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and 

(3) That employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

Sec. 2. Since the beginning of the present depression and the con- 
sequent reduction in the total number of hours of work available in 
the industry, its members have made every effort to distribute, and 
with a remarkable degree of success have distributed, the hours of 
work available in their plants so as to give employment to the maxi- 
mum number of employees. It is the intention of the industry to 
continue that policy insofar as practicable, to the end that the policy 
of Title I of the National Industrial Recovery Act may be effectuated, 
and that work in the industry shall insofar as practicable be dis- 
tributed so as to provide employment for the emploj^ees normally 
attached to the industry. The basic processes in the industry are 
of a continuous character and they cannot be changed in this respect 
without serious adverse effect upon production and employment. 
As demand for the products of the industry and, therefore, for labor 
shall increase, hours of labor for employees in the industry must 
necessarily increase; but, except in the case of executives, those em- 
ployed in supervisory capacities and in technical work and their 
respective staffs and those employed in emergency work, insofar as 
practicable and so long as employees qualified for the work required 
shall be available in the respective localities where such work shall 
be required and having due regard for the varying demands of the 
consuming and processing industries for the respective products, none 
of the members of the code shall cause or permit any employee to 
work at an average of more than 40 hours per week in any six months' 
period or to work more than 48 hours or more than 6 days in any one 
week. On or after November 1, 1933, as soon as the members of the 
code shall be operating at 60% of capacity, they shall adjust the 
operations of their plants so that, except as to executives, those em- 
ployed in supervisory capacities and in technical work and their re- 
spective staffs and those employed in emergency work, they will 
establish the 8-hour day for all their employees. For the purposes 
of this Section 2 the first six months' period for each employee in the 
employ of any member of the code at the effective date thereof shall 
begin with that date, and the first six months' period for any employee 
thereafter employed by any member of the code shall begin with the 
date of employment of such employee by such member. After the 
date of the employment by any member of the code of any employee 
such member shall not knowingly permit such employee who also 
shall have performed work for one or more other employers to work 
for such member such number of hours as would result in a violation 
of the code had all such work been performed for such member. 

Sec. 3. None of the members of the code shall employ in or about 
its plants in the industry any person under 16 years of age. 

Sec. 4. Throughout the history of the industry geographical wage 
differentials have existed, due in the main to differences in living costs 
and general economic conditions and the ability adequately to man 
the industries in the respective localities. The establishments in the 



184 

industry in the different localities have been developed under such 
differences in wages and, after a survey of the matters bearing on 
such differences in the various sections of the United States, for the 
purposes of this Article IV the wage districts described in Schedule 
C annexed hereto have been established. 

Sec. 5. Until changed by amendment of the code as hereinafter 
in Article XII provided, the minimum rates of pay per hour which 
shall be paid by members of the code for common labor (not includ- 
ing that of apprentices and learners) in the industry in the respective 
wage districts described in such Schedule C shall be the rates set 
forth in Schedule D annexed hereto. None of the members of the 
code shall pay common laborers (not including apprentices and 
learners) in its employ in the industry in any such district any rate 
of pay less than the rate specified for such district in such Schedule 
D, and any violation of this provision of the code shall be deemed 
an unfair practice. Such rates of pay shaU not, however, be under- 
stood to be the maximum rates of pay for their respective districts, 
but, until changed as aforesaid, none of the members of the code 
shall be required to pay its common laborers in the industry in any 
of such districts a rate of pay higher than the rate specified for such 
district in such Schedule D, except as such member shall have agreed 
to pay such higher rate in any agreement heretofore or hereafter 
made by such member with its employees. Until this provision shall 
have been changed by amendment as aforesaid, each member of the 
code will pay to each of its employees in the industry who on July 
14, 1933, was receiving pay at a rate of pay per hour in excess of the 
rate of pay per hour then being paid by such member for common 
labor a rate of pay per hour w^hich shall be at least 15% greater than 
that which such employee was then receiving; provided, however, 
that the foregoing provision shall not be so construed as to require 
any member of the code to make any increase in the rate of pay 
per hour to be paid by such member to any of its employees in any 
wage district that w^ill result in a rate of pay per hour which shall be 
higher than the rate of pay per hour paid to employees doing sub- 
stantially the same class or kind of labor in the same wage district 
by any other member of the code w^hich shall have increased its 
rates of pay per hour in accordance with such provision. In the case 
of employees (not including apprentices and learners) performing 
work for which they are paid per piece of work performed, the mini- 
mum rate of pay which each member of the code shall pay for such 
work shall be sufficient to produce at the average rate of performance 
of such work at the time prevailing at the plant of such member 
where such work is performed the minimum rate of pay per hour 
provided in the code for common labor at such plant. 

Article V — Production and New Capacity 

Section 1. It is the consensus of opinion in the industry that it 
is not necessary, in order to effectuate the policy of Title I of the 
National Industrial Recovery Act, to make any specific provision in 
the code for controlling or regulating the volume of production in the 
industry or for allocating production or sales among its members. 
It is believed that the elimination of unfair practices in the industry 
will automatically eliminate any overproduction therein and any 



185 

alleged inequities in the distribution of production and sales among 
its members.l Adequate provision shall be made under the code for 
the collection of statistics regarding production and of other data 
from which it may be determined from time to time whether over- 
production in the industry exists and whether in the circumstances 
any restriction of production is necessary in order to effectuate the 
policy of Title 1. The board of directors shall furnish to the ad- 
ministrator summaries or compilations of such statistics and other 
data in reasonable detail. Should it at any time in the circumstances 
as they shah then exist appear to the board of directors that the 
policy of such Title I will not be effectuated in the industry because 
of the fact that through the code production therein is not controlled 
and regulated, then the board of directors is hereby empowered, sub- 
ject to the approval of the President after such conference with or 
hearing of interested persons as he may prescribe, to make, modify, 
or rescind such rules and regulations for the purpose of controlling 
and regulating production in the industry, including the fixing of 
such liquidated damages for violations of such rules and regulations, 
as such board shall deem to be necessary or proper in order to effec- 
tuate the policy of such Title I. All such rules and regulations from 
time to time so made and in effect shall be binding upon each mem- 
ber of the code to which notice thereof shall have been given. 

Sec- 2. It is also the consensus of opinion in the industry that^ 
until such time as the demand for its products cannot adequately be 
met by the fullest possible use of existing capacities for producing 
pig iron and steel ingots, such capacities should not be increased. 
Accordingly, unless and until the code shall have been amended as 
hereinafter provided so as to permit it, none of the members of the 
code shall initiate the construction of any new blast furnace or open 
hearth or Bessemer steel capacity. The President may, however^ 
suspend the operation of the provisions of this section. 

Article VI — Administration of the Code 

Section 1. The administration of the code shall be under the 
direction of the board of directors. The board of directors shall 
have all the powers and duties conferred upon it by the code and 
generally all such other powers and duties as shall be necessary or 
proper to enable it fully to administer the code and to effectuate its 
purpose. 

Sec. 2. The secretary shall act as secretary under the code. 
Under the direction of the board of directors, he shall keep all books 
(except books of account) and records under the code and, except as 
such board shall otherwise provide, shall collect, file, and collate all 
statistics and other information required by the board of directors 
for the proper administration of the code. 

Sec. 3. The treasurer shall act as treasurer under the code and, 
under the direction of the board of directors, he shall have custody 
of, and have charge of the disposition of, all funds collected under the 
code; and he shall keep proper books of account showing the collection 
and disposition thereof. 

Sec. 4. The board of directors shall have power from time to 
time (a) to appoint and remove, and to fix the compensation of, all 
such other officers and employees and all such accountants, attorneys, 

29847 -296-132 34— -3 



186 

and experts as the said board shall deem necessary or proper for the 
purpose of administering the code and (b) to fix the compensation of 
the Secretary and the treasurer for their services in acting under the 
code. 

Sec. 5. The expenses of administering the code shall be borne by 
the members thereof. The board of directors may from time to time 
make such assessments on account of such expenses against the mem- 
bers of the code as it shall deem proper, and such assessments shall 
be payable as such board shall specify. The part of such expenses 
which shall be assessed against each member of the code shall bear 
the same relation to the total thereof as the number of votes which, 
pursuant to the provisions of the code, such member might cast at a 
meeting of the members thereof held at the time of any such assess- 
ment shall bear to the total number of votes that might be cast 
thereat by all the then members of the code. Failure of any member 
of the code to pay the amount of any assessment against such member 
for a period of thirty d&js after the date on which it became payable 
shall constitute a violation of the code. 

Sec. 6. The board of directors may from time to time appoint 
such committees as it shall deem necessary or proper in order to 
effectuate the purpose of the code, and it may delegate to any such 
ccommittee generally or in particular instances such of the powers and 
duties of the board of directors under the code as such board shall 
deem necessary or proper in order to effectuate such purpose. Any 
member of any such committee may be a member of the board of 
directors or an officer or a director of a member of the code or a 
person not having any official connection with any member of the 
code or with the institute, as the board of directors shall deem 
proper. 

Sec. 7. The members of the code recognize that questions of public 
interest are or may be involved in its administration. Accordingly, 
representatives of the administration consisting of the administrator 
and one or two. other persons appointed by him (who shall be persons 
not having or representing interests antagonistic to the interests of 
members of the industry) shah be given full opportunity at such times 
as shall be reasonably convenient to discuss with the board of di- 
rectors or any committees thereof any matters relating to the admin- 
istration of the code and to attend meetings of the board at which 
action on anv such matters shall be undertaken and to make recom- 
mendations "as to methods or measures of administering the code. 
Due notice of all such meetings of the board of directors shall be 
given to such representatives of the adminLstration. The records 
of the board of directors relating in any way to the administration of 
the code shall be open to such representatives at all reasonable times. 
They shah be afforded by the board of directors complete access at 
all times to all records, statistical material, or other information 
furnished or readily available to the board of directors in connection 
with, or for the purposes of, the administration of the code. The 
board of directors, acting directly or through one or more committees 
appointed by it, shall give due consideration to all requests or recom- 
mendations made by such representatives of the administration and 
render every possible assistance to such representatives in obtaining 
full information concerning the operation and administration of the 
code, to the end that the President may be fully advised regarding 



187 

such operation and administration through reports that may be made 
to him from time to time by such representatives, and to the end that 
the President may be assured that the code and the administration 
thereof do not promote or permit monopohes or monopohstic prac- 
tices, or ehminate or oppress small enterprises, or operate to discrim- 
inate against them and to provide adequate protection of consumers, 
competitors, employees, and others concerned and that they are in 
furtherance of the public interest and operate to effectuate the pur- 
poses of Title I of the National Industrial Recovery Act. 

Article VII — Prices and Terms of Payment 

None of the members of the code shall make any sale of any 
product at a price or on terms and conditions more favorable to the 
purchaser thereof than the price, terms, or conditions established by 
such member in accordance with the provisions of Schedule E annexed 
hereto and in effect at the time of such sale; nor, except as otherwise 
provided in such Schedule E, shall any member of the code make any 
contract of sale of any product at a price or on terms and conditions 
more favorable to the purchaser thereof than the price, terms, and 
conditions established as aforesaid and in effect at the time of the 
making of such contract of sale. 

Article VIII — Unfair Practices 

For all purposes of the code the acts described in Schedule H 
Annexed hereto shall constitute unfair practices. Such unfair 
practices and all other practices which shall be declared to be unfair 
practices by the board of directors as provided in paragraph M of 
such schedule H or by any amendment to the code adopted as here- 
inafter in Article XII provided and at the time in effect, shall be 
deemed to be unfair methods of competition in commerce within 
the meaning of the Federal Trade Commission Act, as amended, 
and the using or employing of any of them shall be deemed to be a 
violation of the code, and any member of the industry which shall 
directly or indirectly, through any officer, employee, agent, or repre- 
sentative, knowingly use or employ any of such unfair practices, shall 
be guilty of a violation of the code. 

Article IX — Reports and Statistics 

Section 1. The board of directors shall have power from time to 
time to require each member of the code to furnish to the Secretary 
for the use of the board of directors such information concerning 
the production, shipments, sales, and unfilled orders of such member 
and the hours of labor, rates of pay, and other conditions of employ- 
ment at the plant or plants of such member and such other informa- 
tion as the board of directors shall deem necessary or proper in 
order to effectuate the purpose of the code and the policy of Title I 
of the National Industrial Recovery Act. The board of directors 
may require that any such information be furnished periodically 
at such times as it shall specify and may require that any or all 
information furnished be sworn to or otherwise certified or authen- 
ticated as it shall prescribe. Failure of any member of the code. 



188 

promptly to furnish to the secretary information required by the 
board of directors and substantially in the form prescribed by it, 
shall constitute a violation of the code. The board of directors 
shall not require any information regarding trade secrets or the names 
of the customers of any member of the code. 

Sec. 2. Any or all information furnished to the secretary by any 
member of the code shall be subject to checking for the purpose of 
verification by an examination of the books and accounts and records 
of such member by any accountant or accountants or other person or 
persons designated by the board of directors, and shall be so checked 
for such purpose if the board of directors shall require it. The cost 
of such examination shall be treated as an expense of administering 
the code; provided, however, that, if upon such examination any such 
information shall be shown to have been incorrect in any material 
respect, such cost shall be paid by the member of the code which 
furnished such information. 

Sec. 3. The board of dii^ectors shall rec[uii'e the members of the 
code from time to time to furnish such information as shall be neces- 
sary for the proper administration of the code. 

Sec. 4. To the extent that the board of directors may deem that 
any information furnished to the secretary in accordance with the 
provisions of the code is of a confidential character in the interest 
of the member of the code which shall have furnished it and that the 
publication thereof is not essential in order to effectuate the policy 
of Title I of the National Industrial Recovery Act, such information 
shall be treated by the board of directors and by the other members 
of the code, if any knowledge of it shall have come to them, as strictly 
confidential ; and no publication thereof to anyone or in any manner 
shall be made other than in combination with similar information 
furnished by other members of the code, in which case the publica- 
tion shall be made only in such manner as will avoid the disclosing 
separately of such confidential information. 

Sec. 5. Summaries or compilations in reasonable detail of all in- 
formation wliich shall be furnished to the secretary pursuant to the 
provisions of tliis Article IX shall be made periodically and sent to 
the administrator. 

Article X — Penalties and Damages 

Section 1. Any violation of any pi-o vision of the code by any 
member of the industry shall constitute a violation of the code by 
such member. 

Sec. 2. Recognizing that the violation by any member of the code 
of any provision of Article \TI or of Schedule E of the code will 
disrupt the normal course of fair competition in the industry and 
cause serious damage to other members of the code and that it will 
be impossible fairly to assess the amount of such damage to any 
member of the code, it is hereby agreed by and among all members 
of the code that each member cf the code which shall violate any 
such provision shall pay to the treasurer as an individual and not 
as treasurer of the institute, in trust, as and for liquidated damages 
the sum of $10 per ton of any products sold by such member in viola- 
tion of any such provision. 



189 

Sec. 3. Except in cases for which Uquidated damages are fixed in 
the code and in cases which shall give rise to actions in tort in favor 
of one or more members of the code for damages suffered by it or 
them, the board of directors shall have power from time to time to 
establish the amount of liquidated damages payable by any member 
of the code upon the commission by such member of any act con- 
stituting an unfair practice under the code and a list of the amounts 
so fixed shall from time to time be filed with the secretary. Upon 
the commission by any member of the code of any act constituting 
an unfair practice under the code and for which liquidated damages 
are not fixed in the code or which does not give rise to an action in 
tort in favor of one or more members of the code for damages suffered 
by it or them, such member shall become liable to pay to the treasurer 
as an individual and not as treasurer of the institute, in trust, liqui- 
dated damages in the amount at the time established by the board 
of directors for such unfair practice and specified in the list then on 
file with the secretary as aforesaid. 

Sec. 4. All amounts so paid to or collected by the treasurer under 
this Article X or under Section 4 of Schedule E of the code shall be 
held and disposed of by him as part of the funds collected under the 
code, and each member of the code not guilty of the unfair practice 
in respect of which any such amount shall have been paid or collected 
shall be credited with its pro rata share of such amount on account of 
any and all assessments (other than damages for violation of any 
provision of the code) due or to become due from such member under 
the code, or, in the case of any excess, as shall be determined by the 
board of directors, such pro rata share to be computed on the same 
basis as the last previous assessment made against such member on 
account of the expenses of administering the code as hereinbefore in 
Section 5 of Article VI provided. All rights of any person who shall 
at any time be the treasurer in respect of any amounts which shall 
be payable to liim because of the commission by any member of the 
code of any act constituting an unfair practice under the code, 
whether payable under the provisions of this Article X or under any 
other provision of the code, shall pass to and become vested in his 
successor in office upon the appointment of such successor. 

Sec. 5. Each member of the code by becoming such member agrees 
with every other member thereof that the code constitutes a valid and 
binding contract by and among all members of the code, subject, 
however, to the provisions of vSection 6 of Article XI, and that, in 
addition to all penalties and liabilities imposed by statute, any viola- 
tion of any provision of the code b}^ any member thereof shall con- 
stitute a breach of such contract and shall subject the member 
guilty of such violation to liability for liquidated damages pursuant 
to the provisions of the code. Each member of the code by becom- 
ing such member thereby assigns, transfers, and delivers to the treas- 
urer as an individual and not as treasurer of the institute, in trust, 
all rights and causes of action whatsoever which shall thereafter 
accrue to such member under the code, for such liquidated damages, 
by reason of any violation of the code by any other member thereof, 
and thereby designates and appoints the treasurer as such individual 
the true and lawful attorney in fact of such member to demand, sue 
for, collect, and receipt for any and all amounts which shall be owing 
to such member in respect of any such right or cause of action, and to 



190 

compromise, settle, satisfy, and discharge any such right or cause of 
action, all in the name of such member or in the name of the treasurer 
individually, as he shall elect. 

Sec. 6. Anything in the code to the contrary notwithstanding, the 
board of directors by the affirmative vote of two thirds of the whole 
board may waive any liability for liquidated damages imposed by or 
pursuant to any provision of the code for any violation of any pro-- 
vision thereof, if in its discretion it shall decide that such violation 
was innocently made and that the collection of such damages will not 
to any material extent tend to effectuate the policy of Title I of the 
National Industrial Recovery Act. 

Article XI— General Provisions 

Section 1. Any notice, demand, or request required or permitted to 
be given to or made upon any member of the code shall be sufficiently 
given if mailed postage prepaid addressed to such member at the 
address of such member on ffie with the secretary. A waiver in 
writing signed by any member of the code of any such notice, demand, 
or request and delivered to the secretary shall be deemed to be the 
equivalent of a notice, demand, or request duly given or made, whether 
or not such waiver was signed and delivered before the time when 
such notice, demand, or request was required or permitted to be given 
or made. 

Sec. 2. Nothing contained in the code shall be deemed to consti- 
tute the members of the code partners for any purpose. None of 
the members of the code shall be liable in any manner to anyone for 
any act of any other member of the code or for any act of the board 
of directors, the treasurer or the secretary, or any committee, officer, 
or employee appointed under the code. None of the members of 
the board of directors or of any committee appointed under the 
code, nor the treasurer, nor the secretary, nor any officer or employee 
appointed under the code, shall be liable to anyone for any action or 
omission to act under the code, except for his willful misfeasance or 
nonfeasance. Notliing contained in the code shall be deemed to confer 
upon anyone other than a member of the code any right, claim, or 
demand whatsoever not expressly provided by statute against any 
member of the code or against any member of the board of directors 
or of any committee appointed under the code or against the treas- 
urer or the secretary or any officer or employee appointed under the 
code. 

Sec. 3. As soon as members of the industry which would, if then 
members of the code, have the right to cast at least 75% of all the 
votes that might be cast at a meeting of the members of the code, if 
all members of the industry were then members of the code and 
present at such meeting, shall sign and deliver to the secretary letters 
substantially in the form set forth in Schedule A annexed hereto, the 
board of directors shall submit the code to the President pursuant 
to the provisions of Title I of the National Industrial Recovery Act 
and, upon the approval of the code by the President pursuant to the 
provisions of such Title I, it shall constitute a binding contract by 
and among the members of the code and the provisions thereof shall 
be the standards of fair competition for the industry ; subject, however,. 



191 

to amendment or termination as hereinafter in Article XII provided, 
and subject also to the provisions of Section 6 of this Article XI. 

Sec. 4. To the extent required or made possible by or under the 
provision of Title I of the National Industrial Recovery Act the pro- 
visions of the code shall apply to and be binding upon every member 
of the industry whether or not such member shall be a member of 
the code. No member of the industry which shall not also be a 
member of the code shall be entitled to vote at any meeting of mem- 
bers of the code or to any other right, power, or privilege provided 
in the code for the members thereof. 

Sec. 5. The board of directors shall have power from time to 
time to interpret and construe the provisions of the code, including, 
but without any limitation upon the foregoing, the power to deter- 
mine what are products within the meaning of that term as it is used 
in the code. Any interpretation or construction placed upon the 
code by the board of directors shall be final and conclusive upon 
all members of the code. 

Sec. 6. The members of the code recognize that, pursuant to sub- 
section (b) of Section 10 of the National Industrial Recovery Act, 
the President may from time to time cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said Act. 

Article XII — Amendments^Termination 

Section 1. The code may be amended at any time in the manner 
in this Section 1 provided. The changing of any schedule hereto or 
the addition hereto of any new schedule shall constitute an amend- 
ment of the code. All amendments shall be proposed by the board 
of directors by vote of the majority of the members thereof at the 
time in office. Each amendment so proposed shall be submitted to 
a meeting of the members of the code which shall be called for such 
purpose upon notice given in accordance with the provisions of Sec- 
tion 1 of Schedule B and Section 1 of Article XI of the code. If at 
such meeting members of the code having the right to cast at least 
75% of all the votes that might be cast at such meeting, if all the 
members of the code were present thereat, shall vote in favor of the 
adoption of such amendment, such amendment shall be submitted 
by the board of directors to the President for approval, if approval 
thereof by him shall then be required by law. Every such amend- 
ment shall take effect as a part of the code upon the adoption thereof 
by the members of the code as above provided and the approval 
thereof by the President, if approval thereof by him shall be required 
as aforesaid. 

Sec. 2. The code shall continue in effect for a period of ninety 
(90) days after the effective date thereof, in order to afford to the 
President an opportunity to determine upon the recommendations 
of the representatives of the administration, for which provision has 
heretofore been made in Article VI, whether its provisions will effec- 
tuate the purposes of Title I of the National Industrial Recovery 
Act, as further defined in said Article VI, subject, however, to amend- 
ment at any time as hereinbefore provided, ^.nd also subject to the 
reserved power of the President to cancel or modify his approval 
thereof. The code shall continue in efi'ect after the expiration of 
said period of ninety (90) days in the absence of the exercise of such 



192 

reserved power on the part of the President, or in the absence of 
the exercise by members of the code of the power which they hereby 
reserve to terminate the code at any time after the expiration of 
said period of ninety (90) days by the same action by them as is 
above provided for the amendment thereof. When so terminated all 
obligations and liabilities under the code shall cease except those 
for unpaid assessments theretofore made in accordance with the 
provisions of the code and those for liquidated damages theretofore 
accrued under any provision of the code. 
August 17, 1933. 

Approved Code No. 11. 
Registry No. 1116/02. 



Schedule A — Fokm of Letter of Assent to the Code 

To the Secretary of American Iron and Steel Institute, Empire State Building, 
New York, N.Y. 

Dear Sir: The undersigned, desiring to become a member of the code of 
fair competition of the Iron and Steel Industry, a copy of which is annexed hereto 
marked Annex A, hereby assents to all of tne provisions of said code (hereinafter 
referred to as the code), and, effective as of the date on which the code shall 
have been approved by the President of the United States of America as therein 
provided, or as of the date on which this letter shall have been delivered, if 
delivery thereof shall have been made subsequent to the date of which the code 
shall have been approved by said President as aforesaid, by the signing and 
delivery of this letter becomes a member of the code and effective as aforesaid 
hereby agrees with every person, firm, association, and corporation who shall 
then be or thereafter become a member of the code that the code shall constitute 
a valid and binding contract between the undersigned and all such other members. 

Effective as aforesaid, pursuant to Section 5 of Article X of said code, the 
undersigned (a) hereby assigns, transfers and delivers to the treasurer under the 
code, as an individual and not as treasurer of American Iron and Steel Institute, 
in trust, all rights and causes of action whatsoever hereafter accruing to the 
undersigned under the code for liquidated damages by reason of any violation 
thereof by anyone, and (b) hereby designates and appoints said treasurer as 
such individual the true and lawful attorney in fact of the undersigned, to de- 
mand, sue for, collect, and receipt for any and all amounts which shall be owing 
to the undersigned in respect of any such right or cause of action, and to com- 
promise, settle, satisfy, and discharge any such right or cause of action, all in 
the name of the undersigned or in the name of said treasurer, as said treasurer 
shall elect. 

For all purposes of Section 1 of Article XI of the code the address of the under- 
signed, until it shall file with the Secretary of American Iron and Steel Institute 
written notice of a change of such address, shall be as set forth at the foot of this 
letter. 

Very truly yours, 

(193) 



Schedule B^ — The Rules and Regulations in Respect of Meetings of 

Members of the Code 

Section 1. A meeting of members of the code may be called and held at any 
time by order of the board of directors, or by members of the code having the 
right to cast at least 50% of all the votes that might be cast at such meetings if 
all the members of the code were present thereat, on not less than three daj's' 
notice to each of such members stating the time and place of such meeting and 
the purposes thereof. 

Sec. 2. At each meeting of the members of the code each member thereof 
shall have as many votes as shall equal the quotient obtained by dividing by 
500,000 the aggregate amount in dollars of the invoiced value of the products 
delivered by such member for consumption within the United States during the 
preceding calendar year. Fractions in such quotient shall be disregarded; pro- 
vided, however, that each member of the code shall have at least one vote. All 
questions as to the number of votes which each member of the code shall be en- 
titled to cast at any meeting of the members thereof shall be determined by the 
board of directors. Any person or firm who shall be a member of the code may, 
and any association or corporation which shall be a member of the code shall, 
vote at meetings of the members of the code by proxy in writing duly executed 
by such member and fi]ed with the secretary. Any such proxy may be for a 
specified meeting or be a general proxy for any or all meetings that may be held 
until such proxy shall have been revoked by an instrument in writing duly exe- 
cuted bj' the member of the code which gave such proxy and filed with the 
Secretary. 

Sec. 3. At each meeting of tlie members of the code, members thereof having 
the right to cast at least 75% of all the votes that might be cast at such meeting 
if all the members of the code were present thereat, shall constitute a quorum for 
the transaction of business at such meeting. 

(194) 



Schedule C — Description of Wage Districts 

1. Eastern District. — Comprises that part of the United States which is north 
of the State of Virginia and east of a line drawn north and south through the 
most easterly point of Altoona, Pennsylvania; that part of the State of Mary- 
land which is west of such line; and the Counties of Monongalia, Marion, and 
Harrison in the State of West Virginia. 

2. Johnstown District. — Comprises Cambria County and the City of Altoona 
in the State of Pennsylvania. 

3. Pittsburgh District. — Comprises the Counties of Westmoreland, Fayette, 
Greene, Washington, Allegheny, Beaver, Butler, Armstrong, and Jefferson, and 
that part of the County of Clearfield which is west of a line drawn north and 
south through the most easterly point of Altoona, all in the State of Pennsyl- 
vania. 

4. Youngstown Valley District. — Comprises the Counties of Lawrence, Mercer, 
and Venango in the State of Pennsylvania and the Counties of Trumbull, Ma- 
honing, and Columbiana in the State of Ohio. 

5. North Ohio River District. — Comprises the cities along the Ohio River 
north of the City of Parkersburg, West Virginia, and the Counties of Belmont 
and Jefferson in the State of Ohio, and the Counties of Marshall, Ohio, Brook, and 
Hancock in the State of West Virginia. 

6. Canton, Massillon, and Mansfield District. — Comprises the Counties of 
Stark, Tuscarawas, Summit, and Richland in the State of Ohio. 

7. Cleveland District. — Comprises the Counties of Ashtabula, Lake, Cuyahoga, 
and Lorain in the State of Ohio. 

8. Buffalo District. — Comprises that part of the State of New York west of a 
line drawn north and south through the most easterly point of Altoona, Penn- 
sylvania, and Erie County in that State. 

9. Detroit-Toledo District.- — Comprises the Counties of Seneca and Lucas in 
the State of Ohio and the Counties of Monroe, Lenawee, Jackson, Wayne, 
Oakland, Macomb, and Washtenaw in the State of Michigan. 

10. South Ohio River District. — Comprises the State of Kentucky, the City of 
Parkersburg, W.Va., the cities along the Ohio River south of said City, the 
Comities of Guernsey, Muskingum, Jackson, and Butler in the State of Ohio, 
and the County of Wood in the State of West Virginia. 

11. Indiana-Illinois-St. Louis District. — Comprises all the State of Indiana, 
except the County of Lake; all the State of Illinois, except the Counties of Lake 
and Du Page and the Chicago Switching District; the City of St. Louis and the 
County of St. Louis in the State of Missouri; and the County of Rock in the State 
of Wisconsin. 

12. Chicago District.— Comprises the Chicago Switching District; the Counties 
of Lake and Du Page in the State of Illinois; the County of Lake in the State of 
Indiana; and the Counties of Kenosha, Racine, and Milwaukee in the State of 
Wisconsin. 

13. Southern District. — Comprises all that part of the United States south of 
the States of Maryland, West Virginia, Kentucky, and Missouri, and the States 
of Texas and Oklahoma, but does not include the County of Jefferson in the State 
of Alabama. 

14. Birmingham District. — Comprises the County of Jefferson in the State of 
Alabama. 

15. Kansas City District. — Comprises the County of Jackson in the State of 
Missouri. 

16. Duluth District. — Comprises the County of St. Louis in the State of 
Minnesota. 

17. Colorado District. — Comprises the State of Colorado. 

18. Utah District. — Comprises the State of Utah. 

19. Seattle District. — Comprises the County of King in the State of Washing- 
ton and the County of Multnomah in the State of Oregon. 

20. San Francisco DzsincL— Comprises the Counties of San Mateo, Alameda, 
Sacramento, and Contra Costa in the State of California. 

21. Los Angeles District. — Comprises the County of Los Angeles in the State 
of California. 

(195) 



Schedule D — Minimum Rates of Pay fob Common Labor 

Per hour 

1. Eastern District $0. 35 

2. Johnstown District . 37 

3. Pittsburgh District . 40 

4. Youngstown Valley District . 40 

5. North Ohio River District . 40 

6. Canton, Massillon, and Mansfield District .37 

7. Cleveland District . 40 

8. Buflfalo District . 38 

9. Detroit-Toledo District . 40 

10. South Ohio River District . 37 

11. Indiana-IUinois-St. Louis District .37 

12. Chicago District . 40 

13. Southern District . 25 

14. Birmingham District . 27 

15. Kansas City District . 35 

16. Duluth District . 37 

17. Colorado District . 40 

18. Utah District . 39 

19. Seattle District . 38 

20. San Francisco District . 37 

21. Los Angeles District ^ . 35 

(196) 



Schedule E — Concerning Prices and Terms of Payment 

Section 1. Wherever used in the Code the terms hereinafter in this Section 
1 defined shall, unless the context shall otherwise clearly indicate, have the 
respective meanings hereinafter in this Section 1 set forth. The definition of 
any such term in the singular shall apply to the use of such term in the plural and 
vice versa. 

(a) Until Schedule F of this Code shall have been amended as in Article XII 
of the Code provided, the term "basing point" for any product means one of the 
places listed in such Schedule F as a basing point for such product. Thereafter 
the term shall mean one of the places listed in such Schedule F as at the time in 
effect as a basing point for such product. 

(b) The term "base price" of any product means the price for such product 
f.o.b. a basing point, before any extras in respect of such product shall be added 
or any discounts for early payment or deductions shall be allowed or made. 

(c) The term "period of free credit" means the period of time between the 
date of a shipment of a product to the purchaser of such product and the date 
from and after which such purchaser shall be required to pay interest on the 
purchase price of such product or any part thereof which shaU not have been 
paid prior to the expiration of such period. 

(d) The term "date of invoice" means the date of the invoice of any product. 

(e) The term "discount for early payment" means the amount of the deduction 
allowed for the payment of an invoice of products before the expiration of the 
period of free credit in respect thereof. 

(f) The term "an affiliated group" means one or more corporations connected 
through stock ownership with a common parent corporation, if (1) at least 75% 
of the stock of each of such corporations (except such common parent corporation) 
is owned directly by one or more of the other corporations, and (2) such common 
parent corporation owns directly at least 75% of the stock of at least one of the 
other corporations. The term "an affiliated company of a member of the Code" 
means (1) a corporation which is one of an affiliated group that also includes 
such member of the Code, or (2), in case the member of the Code is a person, 
firm, or association, a corporation at least 75% of the stock of which is owned by 
such member. For the purposes of this paragraph (f) the term "stock" does not 
include nonvoting stock which is limited and preferred as to dividends. 

Sec. 2. Each member of the Code shall, within ten days after the effective 
date of the Code, file with the Secretary a list showing the base prices for all its 
products, and from and after the expiration of such ten days such member shall 
at all times maintain on file with the Secretary a list showing the base prices for 
all its products and shall not make any change in such base prices except as 
provided in this Schedule E. Each such list shall state the date upon which it 
shall become effective, which date shall be not less than ten days after the date of 
filing such list with the Secretary; provided, however, that the first list of base 
prices filed by any member of the Code as above provided shall take effect on 
the date of filing thereof. None of the base prices shown in any list filed by any 
member of the Code as herein provided shall be changed except by the filing by 
such member with the Secretary of a new list of its base prices, which shall 
become effective on the effective date therein specified which shall not be less 
than ten days after the date on which such new price list shall have been so filed. 
In the case of pipe of sizes or kinds which are sold on a list and discount basis, 
for the purposes of this Section 2 the list of base prices shall consist of a price list 
and one or more basing discount lists, from which the base prices of such pipe 
shall be determined; provided, however, that in the case of oil country tubular 
goods there shall be filed in lieu of a list of base prices a price list and one or more 
basing discount lists from which the delivered prices of such goods shall be 
determined. 

Sec. 3. Except as hereinafter otherwise provided in respect of standard Tee 
rails of more than 60 pounds per yard, angle bars, and rail joints, the base price 
for any product shown in any list of base prices filed by a member of the Code 
in accordance with the provisions of the foregoing Section 2 shall be as follows: 

(197) 



198 

(a) If such member shall operate a plant for the production of such product 
which is located at a basing point for such product, f.o.b. such basing point, or 
(b) if such member shall operate a plant for the production of such product 
which is not located at a basing point for such product, f.o.b. the basing point 
for such product nearest in terms of all-rail freight rates to such plant, or (c) if 
any Gulf or Pacific Coast port shall be listed as a basing point in Schedule F 
of the Code as at the time in effect, f.o.b. cars dock such port. Except as other- 
wise provided in this Schedule E, each member of the Code shall file with the 
Secretary and maintain on file with him a list showing the base price for each 
of its products for each basing point for such product at which a plant of such 
member for the manufacture of such product, shall be located and for each basing 
point for such product which shall be nearest in terms of all-rail freight rates to 
any plant of such member for the manufacture of such product not located at a 
basing point for such product; and if any Gulf or Pacific Coast port shall be listed 
in such Schedule F as a basing point for a product, such member may show in 
such list its base price for such prodvict at such basing point. All base prices 
shown in the list so filed shall constitute the published base prices of such member 
for the products and for the basing points shown in such list. Except as afore- 
said, none of the members of the Code shall file any list of base prices showing any 
price for any of its products other than the base price for such product f.o.b. 
the basing point or basing points for such products as hereinbefore provided. 
The published base price of each such member for any product (except standard 
Tee rails of more than 60 pounds per yard, angle bars, and rail joints) for any 
basing point for such product other than that or those shown in the list of base 
prices so filed by such member shall be deemed to be the lowest base price for 
such product at such other basing point which shall be shown in the list of base 
prices filed by any other member of the Code and then in effect. All base prices 
for standard Tee rails of more than 60 pounds per yard and all base prices for 
angle bars and rail joints shall be f.o.b. mill of the producer thereof, or, in the 
case of rails, angle bars, and rail joints carried by water from any Atlantic Coast 
or Gulf port to any Gulf or Pacific Coast port, c.i.f. the port of destination. 
Lists of prices filed with the Secretary pursuant to the foregoing Section 2 and to 
this Section 3 shall be open to inspection at all reasonable times by anyone. 

Sec. 4. Except as otherwise provided in this Schedule E of the Code, all prices 
cjuoted and billed by any member of the Code for any product (except standard 
Tee rails of more than 60 pounds per yard, angle bars and rail joints and oil 
country tubular goods, which shall be quoted and billed as hereinafter provided) 
sold by such member from and after ten days after the effective date of the 
Code shall be delivered prices, which (disregarding the extras, if any, required 
by, and the deductions, if any, that may be made pursuant to, the provisions of 
the Code) shall be not less than the sum of (a) tlie published base price of such 
member for such product effective at the time of the sale thereof and (b) the all- 
rail pul)lished tariff freight charges from the basing point on which such base 
price is based to the place of delivery to the purchaser thereof or, (1) if such 
place of delivery shall be at such basing point, the published tariff switching 
charges to such place of delivery from the plant of any member of the Code for 
the production of such product at such basing point nearest in terms of such 
switching charges to such place of delivery; or, (2) if such place of delivery shall 
be at a Gulf or Pacific Coast port that is listed in Schedule F as a basing point, the 
published tariff switching charges to such place of delivery from the dock for dis- 
charging products nearest in terms of such switching charges to such place of 
delivery; provided, however, that (a) in any case in which such product shall be 
delivered by other than all-rail transportation, the member of the Code selling 
such product may allow to the purchaser a reduction in the delivered price other- 
wise chargeable under this Section 4 at a rate which shall have been previously 
approved by the Board of Directors and filed with the Secretary; and (b) in the 
case of plates, shapes, or bars intended for fabrication for an identified structure, 
for the purpose of establishing the delivered price thereof, the place of delivery 
shall be deemed to be the freight station at or nearest to the place at which such 
structure is to be erected, and not the shop of the fabricator; and (c) subject as 
hereinafter in this Section 4 provided, if any list of prices filed with the Secretary 
by any member of the Code pursuant to this Schedule E and at the time in effect 
shall show a specified rate of deduction from the price of any product to be allowed 
by such member on any sale of such product to any jobber for resale, such mem- 
ber may, from and after the date on which such list shall have become effective, 
allow to any jobber to whom such member shall sell such product for resale a 
deduction from such price to such jobber for such product at a rate not greater 



199 

than the rate so shown in such list; and provided, farther, that the Board of Direc- 
tors bjr the affirmative vote of three fourths of the whole Board may pern" it any 
member of the Code in special instances or members of the Code generally to sell 
or contract for the sale of any product produced by such member or members at a 
base price which shall be less than the then published base price of such member 
or members for such product at the respective basing points therefor of such 
members, if by such vote such Board shall determine that the making of such sale 
or contract of sale at such less base price is in the interest of the Industry or of any 
other branch of industry and will not tend to defeat the policy of Title I of the 
National Industrial Recovery Act by making possible the using or employing of 
an unfair practice. The Board of Directors shall prescribe such rules and regula- 
tions as it shall deem proper by which the question of whether or not any pur- 
chaser or prospective purchaser of any product for resale is a jobber shall be deter- 
mined, and in granting any permission as aforesaid, the Board of Directors shall 
prescribe such rules and regulations in respect thereof as in its judgment shall be 
necessary in order to insure to the members of the Code that action in accordance 
with any such permission shall not result in an unfair practice; and thereafter 
such Board may by like vote rescind any permission so granted or modify, cancel, 
or add to any rules and regulations so prescribed. The Secretary shall send to 
each member of the Code a copy of all such rules and regulations prescribed by 
such Board with respect to the determination of the question of whether a pur- 
chaser or prospective purchaser for resale is a jobber and he shall give notice in 
writing of all action so taken by the Board of Directors to each member of the Code 
which at the time shall be engaged in producing the kind of product in respect 
of which any such permission was granted. Before any member of the Code shall 
allow any such deduction to any jobber or sell for resale to any purchaser who 
shall not be a jobber any product pursuant to any permission so granted to such 
member, such member shall secure from such jobber or such other purchaser an 
agreement substantially in a form theretofore approved by the Board of Direc- 
tors and filed with the Secretary whereby such jobber or other purchaser shall 
agree with such member (a) that such jobber or other purchaser will not, without 
the approval of the Board of Directors, sell such product to any third party at a 
price which at the time of the sale thereof shall be less than the price at which such 
member might at that time sell such product to such third party, and (b) that, 
if such jobber or such other purchaser shall violate any such agreement, he shall 
pay to the Treasurer as an individual and not as treasurer of the Institute, in 
trust, as and for liquidated damages the sum of $10 per ton of any product sold 
by such jobber or such other purchaser in violation thereof. Except as aforesaid, 
all prices quoted and billed by any member of the Code for standard Tee rails 
of more than 60 pounds per yard, angle bars, and rail joints sold by it from and 
after ten days after the effective date of the Code (disregarding extras and deduc- 
tions as aforesaid) shall be not less than the published base price of such member 
for such rails, angle bars, and rail joints effective at the time of the sale thereof 
f.o.b. mill of the producer, or, in the case of rails, angle bars, or rail joints carried 
by water from any Atlantic Coast or Gulf port to any Gulf or Pacific Coast port, 
c.i.f. the port of destination. Except as aforesaid, all prices quoted and billed by 
any member of the Code for oil country tubular goods sold by it from and after 
ten days after the effective date of the Code (disregarding extras and deductions 
as aforesaid) shall be not less than the delivered price for such goods detennined 
by deducting from the published list price of such member for such goods effec- 
tive at the time of the sale thereof the published basing discounts applicable to 
such goods effective at such time. In case at the effective date of the Code any 
valid, firm contract to which a member of the Code shall be a party shall exist 
for a definite quantity of any product or for all or a substantial part of the require- 
ments of the purchaser thereof (a) at a fixed price, or (b) at a price that can be 
definitely determined in accordance with the provisions of such contract, or (c) 
at the market price for such product at the date when a definite quantity thereof 
shall be specified under such contract and such contract covered a sale of 20% 
or more of the total quantity of such product produced and sold in the United 
States in the calendar year 1932, it is recognized that such contract will tend to 
establish the market price for such product dviring the remainder of its life and 
that, if the other members of the Code which produce and sell such product 
shall by the foregoing provisions of this Schedule E be prevented from selling 
such product during the remainder of the life of such contract at as favorable a 
price and on as favorable terms and conditions as those provided for in such 
contract, then unfair competition as between the member of the Code which 
shall be a party to such contract and the other members thereof and also as be- 



200 

tween the other party to such contract and its competitors may result. Accord- 
ingly, anything herein to the contrary notwithstanding, during the remainder of 
the life of such contract any member of the Code may sell such product at a price 
and on terms and conditions as favorable as (but not more favirable than) the 
price, terms, and conditions provided for in such contract. 

Sec. 5. The Board of Directors shall have power on its own initiative, or on the 
complaint of any member of the Code, to investigate any base price for any 
product at any basing point shown in any list filed with the Secretary by any 
member of the Code, and for the purpose of the investigation thereof to require 
such member to furnish such information concerning the cost of manufacturing 
such product as the Board of Directors shall deem necessary or proper for such 
purpose. If the Board of Directors after such investigation shall determine 
that such base price is an unfair base price for such product at such basing point, 
having regard to the cost of manufacturing such product, and that the main- 
tenance of such unfair base price may result in unfair competition in the Industry, 
the Board of Directors may require the member of the Code that filed the list in 
which such unfair base price is shown to file a new list showing a fair base price 
for such product at such basing point, which fair base price shall become effective 
irnmediately upon the filing of such list. If such member of the Code shall not 
within ten days after notice to it of such determination by the Board of Directors 
file a new list showing such fair base price for such product at such basing point 
the Board of Directors shall have power to fix a fair base price for such product 
at such basing point, which fair base price, however, shall not be more than the 
base price of any other member of the Code at that time effective for such product 
at such basing point and in respect of which the Board of Directors shall not 
theretofore have begun an investigation or a complaint shall not have been made 
by any member of the Code. When the decision of such Board fixing such fair base 
price shall have been filed with the Secretary and the Secretary shall have given 
notice thereof to such member, such fair base price shall be the base price of 
such member for such product at such basing point, until it shall have been 
changed as in the Code provided. A notice of all decisions of the Board of Direc- 
tors under this Section 5, together with the reasons therefor, shall be filed with 
the President. 

Sec. 6. The Board of Directors by the affirmative vote of a majority of the 
whole Board may establish maximum rates of discount and maximum periods of 
free credit, other than those specified in Schedule G of the Code, which may be 
allowed by any member of the Code with respect to the sale of any product or 
products to jobbers for resale as permitted by the provisions of Section 4 of this 
Schedule E. The Secretary shall give notice in writing of any action taken by the 
Board of Directors in accordance with the provisions of this Section 6 to each 
member of the Code which at the time shall be engaged in producing the kind of 
product in the sale of which any such other rates or periods shall have been estab- 
lished by such action. Except as aforesaid and except as elsewhere in this Sched- 
ule E of the code otherwise provided, the maximum rates of discount for early 
payment and the maximum periods of free credit which may be allowed by any 
member of the Code shall be the rates and periods specified in said Schedule G. 
Except as aforesaid, all invoices for products sold by any member of the Code 
after the effective date of the Code shall bear interest from and after the expiration 
of the period of free credit at a rate which shall be not less than the then current 
rate established by the Board of Directors and filed with the Secretary. Nothing 
in the Code contained shall prevent any member of the Code from allowing 
credit to any purchaser or allowing any purchaser to delay payment in respect of 
any invoice for a longer period than the maximum period of free credit specified 
in such Schedule G or such other maximum period as shall be established in 
accordance with the provisions of this Section 6; but, if any member of the Code 
shall allow credit to any purchaser or allow any purchaser to delay payment in 
respect of any invoice for a period longer than such maximum period of free 
credit, then such member shall charge and collect interest on the amount in 
respect of which credit shall be so allowed or the payment of which shall have been 
so delayed at a rate not less than the current rate established and filed as aforesaid. 

,Sec. 7. Except as in this Schdule E of the Code otherwise provided, any 
extras added to, and any deductions made from, the base price for any product 
sold by any member of the Code in determining its quoted or billed price for such 
product shall be uniform for all menabers of the Code. The rates of such extras 
and of such deductions shall be those approved from time to time by the Board 
of Directors as being in accordance with the trade practice customary in the 
Industry at the effective date of the Code and as meeting the requirements of the 



201 

Code. Lists showing such rates shall be filed with the Secretary and shall be open 
to inspection at all reasonable times by anyone. In case any member of the Code 
shall sell any product to which any such rate of extra or deduction shall apply, 
except as aforesaid, such member shall add an extra at a rate which shall not be 
less than the rate of extra applicable to such product theretofore approved by the 
Board of Directors as aforesaid and at the time in effect and none of the members 
of the Code shall make any deduction at a rate that shall be more favorable to 
the purchaser of such product than the rate of deduction applicable to such 
product theretofore approved by the Board of Directors as aforesaid and at the 
time in effect; provided, however, that nothing in the Code contained shall be 
so construed as to prevent any member of the Code from selling or contracting to 
sell any product for use by the purchaser thereof in the manufacture of articles 
for shipment in export trade within the meaning of the term "export trade" as 
it is used in the Export Trade Act under an agreement by such member of the 
Code with such purchaser that, when such articles shall have been shipped in 
such export trade, such member of the Code shall make an allowance at a rate 
approved by the Board of Directors and a statement of the approval of which 
shall theretofore have been filed with the Secretary, which rate in the opinion of 
such Board shall be sufficient to enable such member of the Code or such pur- 
chaser to meet foreign competition in the sale and delivery of such product or 
such articles, as the case may be. 

Sec. 8. The practice of shipping products on consignment may result in 
unfair competition and it is the intention of the Industry to eliminate such 
practice as soon as possible after the effective date of the Code. Accordingly, 
except to the extent necessary to carry out arrangements existing on the effec- 
tive date of the Code and which shall have been reported to the Board of Direc- 
tors, from and after such date none of the members of the Code shall deliver 
products, other than pipe, on consignment except to an affiliated company of 
such member. All arrangements for the delivery by any member of the Code 
of products on consignment (other than consignments to an affiliated company 
of such member and other than consignments of pipe) existing on the effective 
date of the Code shall be terminated on or before June 30, 1934, and all stock 
held on consignment on that date shall either be sold to the consignee or posses- 
sion thereof shall be taken by the consignor. The Board of Directors shall investi- 
gate problems presented in the elimination of consigned stocks of pipe and 
shall recommend to the members of the Code which shall be parties to then 
existing arrangements with respect to shipments of pipe on consignment (other 
than consignments from a member of the Code to an affiliated company) such 
action in respect thereof as such Board shall deem proper and designed to accom- 
plish the termination of all such arrangements (other than as aforesaid) at as 
early a date as possible. 

Sec. 9. For all purposes of this Schedule E, a delivery of any product made 
pursuant to a contract of sale shall be regarded as a sale thereof made at the 
time of the making of such contract. Except in the case of a product required 
by a purchaser for a specified definite contract of such purchaser with a third 
party at a fixed price, none of the members of the Code shall make any contract 
of sale of any product by the terms of which the shipment of such product is 
not required to be completed before the end of the calendar quarter year ending 
not more than four months after the date of the making of such contract. 

Sec. 10. Nothing in the Code contained, however, shall be so construed as 
to prevent the performance by any member of the Code of a valid, firm contract 
existing and to which it is a party at the effective date of the Code for a definite 
quantity of any product or for all or a substantial part of the requirements of 
the purchaser thereof (a) at a fixed price, or (b) at a price that can be definitely 
determined in accordance with the provisions of such contract, or (c) at the 
market price for such product at the date when a definite quantity thereof shall 
be specified under such contract. If any member of the Code shall at the effec- 
tive date thereof be a party to any contract for the sale of any product by such 
member which by its terms is to continue after December 31, 1933, and by its 
terms the price to be paid for such product by the other party to such contract 
is related to the market price thereof at the date when a definite quantity thereof 
may be specified under such contract and may be less than such market price, 
then such member shall within thirty days after the effective date of the Code 
file a copy of such contract with the Secretary in order that the Board of Direc- 
tors may consider it and take such action in respect thereof consistent with the 
rights and obligations of the parties to such contract as such Board shall deem 
proper. 



202 

Sec. 11. A sale made by any member of the Code indirectly through any 
affiliated company of such member shall be deemed to be a sale made by such 
member. 

Sec. 12. Nothing in the Code contained shall be deemed to apply to or affect 
the sale of any product for direct shipment in export trade by any member of 
the Code within the meaning of the term "export trade" as it is used in the 
Export Trade Act or, unless and to the extent that the Board of Directors shall 
otherwise determine, the sale of any product by any such member for direct 
shipment to the Philippines, Hawaii, or Puerto Rico or other insular possessions 
of the United States of America. 

Sec. 13. If and to the extent requested by the Administrator, all decisions of, 
permissions, and approvals given by and ru'es and regulations made by, the 
Board of Directors pursuant to any provisions of this Schedule E shall be reported 
to him. 



Schedule F — List of Basing Points 



The places hereinafter in this Schedule F listed are the basing points for tlie 
respective products named. 



Axles — Rolled or forged: 

Pittsburgh, Pa. 

Chicago, 111. 

Birmingham, Ala. 
Bale Ties: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 

Duluth, Minn. 

Gulf Ports 1 

Pacific Coast Ports - 
Bars — Alloy steel, hot rolled: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, 111. 

Canton, Ohio 

Massillon. Ohio 

Bethlehem, Pa. 
Bars — Cold finished, carbon, and alloy: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Gary, Ind. 
Bars — Concrete reinforcing: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Gary, Ind. 

Birmingham, Ala. 

Youngstown, Ohio 

Gulf Ports 

Pacific Coast Ports 
Bars — Iron: 

Pittsburgh, Pa. 

Troy, N.Y. 

Jersey City, N.J. 

Dover, N.J. 

Philadelphia, Pa. 

Columbia, Pa. 

Lebanon, Pa. 

Reading, Pa. 

Danville, Pa. 

Burnham, Pa. 

Creighton, Pa. 

Richmond, Va. 

Louisville, Ky. 

Terre Haute, Ind. 



Bars — Merchant steel: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Gary, Ind. 

Birmingham, Ala. 

Gulf Ports 

Pacific Coast Ports ^ 
Bars — Tool steel: 

Pittsburgh, Pa. 

Syracuse, N.Y. 

Bethlehem, Pa. 
Girder rails: 

Lorain, Ohio 

Steelton, Pa. 
Ingots, blooms, billets, and slabs — 
Alloy: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, 111. 

Canton, Ohio 

Massillon, Ohio 

Bethlehem, Pa. 
Ingots, blooms, billets, and slabs — 
Carbon: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Gary, Ind. 

Birmingham, Ala. 

Youngstown, Ohio 
Light rails — 60 lbs. or less per yard: 

Pittsburgh, Pa. 

Chicago, 111. 

Birmingham, Ala. 
Mechanical tubing: 

Pittsburgh, Pa. 

Canton, Ohio 

Shelby, Ohio 

Detroit, Mich. 

Milwaukee, Wis. 
Pig iron — Foundry, malleable, open- 
hearth basic, and Bessemer: 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 

Youngstown, Ohio 



' E.xcept as otherwise shown in this Schedule F, the Gulf Ports are Mobile, Ala., New Orleans, La., and 
Orange, Port Arthur, Beaumont, Baytown, Galveston, and Houston, Tex. 

^ The Pacific Coast ports are San Pedro (includes Wilmington) and San Francisco (includes Oakland) 
Calif.; Portland, Oreg.; and Seattle (includes Tacoma), Washington; and San Diego, Calif.; for Plates and 

structural Shapes only. 

(203) 



204 



Pig iron — Continued. 

Neville Island, Pa. 

Sharpsville, Pa. 

Erie, Pa. 

Bethlehem, Pa. 

Swedeland, Pa. 

Birdsboro, Pa. 

Hamilton, Ohio 

Jackson, Ohio 

Toledo, Ohio 

Granite City, 111. 

Detroit, Mich. 

Duluth, Minn, (except open-hearth 
basic) 

Provo, Utah 

Everett, Mass. 

Sparrows Point, Md. 
Pig iron — Low phosphorus: 

Birdsboro, Pa. 

Steelton, Pa. 

Standish, N.Y. 

Johnson City, Tenn. 
Pipe — Rigid electrical conduit: 

Pittsburgh, Pa. 

Evanston, 111. 
Pipe — Standard, line pipe, and oil 
country tubular products: 

Pittsburgh, Pa. 

Gary, Ind. 

Lorain, Ohio 
Plates: 

Pittsburgh, Pa. 

Chicago, 111. 

Gary, Ind. 

Birmingham, Ala. 

Coatesville, Pa. 

Sparrows Point, Md. 

Gulf Ports 

Pacific Coast Ports 
Railroad tie plates: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, 111. 

Birmingham, Ala. 

St. Louis, Mo. 

Kansas City, Mo. 

Minnequa, Colo. 

Weirton, W.Va. 

Portsmouth, Ohio 

Steelton, Pa. 

Pacific Coast Ports 
Railraod track spikes: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 

Younsgtown, Ohio 

Portsmouth, Ohio 

Weirton, W.Va. 

St. Louis, Mo. 

Kansas City, Mo. 

Minnequa, Colo. 

Philadelphia, Pa. 

Lebanon, Pa. 

Columbia, Pa. 

Richmond, Va. 



Railroad track spikes — Continued. 

Jersey City, N.J. 

Pacific Coast Porta 
Sheet bars: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Youngstown, Ohio 

Canton, Ohio 

Sparrows Point, Md. 
Sheets: 

Pittsburgh, Pa. 

Gary, Ind. 

Birmingham, Ala. 

Pacific Coast Ports 
Skelp: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, 111. 

Youngstown, Ohio 

Coatesville, Pa. 

Sparrows Point, Md. 
Steel sheet piling: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, 111. 

Gulf Ports 

Pacific Coast Ports 
Strip steel — Cold-rolled: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Worcester, Mass. 
Strip steel — Hot-rolled: 

Pittsburgh, Pa. 

Chicago, 111. 
Structural shapes: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, 111. 

Birmingham, Ala. (standard shapes 
only) 

Bethlehem, Pa. 

Gulf Ports 

Pacific Coast Ports 
Tin plate, tin mill black plate and terne 
plate: 

Pittsburgh, Pa. 

Garj^ Ind. 

Pacific Coast Ports 
Tubes — Boiler: 

Pittsburgh, Pa. 
Tube rounds: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 
Wheels — Car, rolled steel: 

Pittsburgh, Pa. 

Chicago, 111. 
Wire — Drawn, except as hereinafter 
specified: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 



205 



Wire — Continued. 

Anderson, Ind. 

Duluth, Minn. 

Worcester, Mass. 

Gulf Ports 

New Orleans, La. 

Galveston, Tex. 

Houston, Tex. 

Pacific Coast Ports 
Wire nails and staples, barbed wire, 
and wire fencing: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 

Anderson, Ind. 

Duluth, Minn. 

Gulf Ports 

Pacific Coast Ports 



Wire, rods: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, 111. 

Birmingham, Ala. 
Wire- — Spring: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, 111. 

Worcester, Mass. 

Pacific Coast Ports 
Wire — Telephone : 

Pittsburgh, Pa. 

Cleveland, Ohio 

W^aukegan, 111. 

Muncie, Ind. 

Trenton, N.J. 

Worcester, Mass. 

Sparrows Point, Md. 



Schedule G — Maximum Rates of Discount for Early Payment and Maxi- 
mum PERIODS OF Free Credit 

MAXIMUM rates OF DISCOUNT FOR EARLY PAYMENT 

In the case of products shipped from plants located east of the Mississippi 
River to Pacific Coast Ports and which shall be invoiced from such plants — J^ of 
1%, if the invoice of such products shall be paid within 25 days from the date of 
such invoice; in all other cases — Yi of 1%, if the invoice of such products shall be 
paid within 10 days from the date of such invoice; provided, however, in the 
latter cases, that any member of the Code may allow such discount of H of 1% 
for payment within 10 days on the basis of settlements three times in each month, 
as follows: 

(1) On invoices for products dated from the 1st to the 10th, inclusive, in any 
month, such discount may be allowed on payment of such invoices on or before 
the 20th of such month; 

(2) On invoices for products dated from the 11th to the 20th, inclusive, in 
any month, such discount may be allowed on payment of such invoices on or 
before the 30th of each month; and 

(3) On invoices for products dated from the 21st to the end of any month, 
such discount may be allowed on payment of such invoices on or before the 10th 
of the next following month. 

Any discount allowed in accordance with the provisions of this Schedule G 
shall apply only to the invoiced value of the products specified therein and not 
to any part of the transportation charges on such products. 

MAXIMUM PERIODS OF FREE CREDIT 

In the case of products shipped from plants located east of the Mississippi 
River to Pacific Coast ports and which shall be invoiced from such plants — 45 
days; in all other cases — 30 days. 

(206) 



Schedule H — List op Unfair Practices 

For all purposes of the Code the following described acts shall constitute unfair 
practices; 

A. Making or promising to any pvn-chaser or prospective purchaser of any prod- 
uct, or to any officer, employee, agent or representative of any such purchaser or 
prospective purchaser, any bribe, gratuity, gift or other pajanent or remunera- 
tion, directly or indirectly. 

B. Procuring, otherwise than with the consent of any member of the Code, 
any information concerning the business of such member which is properly re- 
garded by it as a trade secret or confidential within its organization, other than 
information relating to a violation of any provision of the Code. 

C. Imitating or simulating any design, style, mark, or brand used by any other 
member of the Code. 

D. Using or substituting any material superior in quality to that specified 
by the purchaser of any product or using or substituting any material or any 
method of manufacture not in accord with any applicable law, rule; or regulation 
of any governmental authority. 

E. Cancelling, in whole or in part, or permitting the cancellation in whole or 
in part of any contract of sale of any product, except for a fair consideration, or 
paying or allowing to any purchaser in connection with the sale of any product 
any rebate, commission, credit, discount, adjustment, or similar concession other 
than as is permitted by the Code and specified in the contract of sale. 

F. Disseminating, publishing, or circulating any false or misleading informa- 
tion relative to any product or price for any product of any member of the Code, 
or the credit standing or ability of any member thereof to perform any work or 
manufacture or produce any product, or to the conditions of employment among 
the employees of any member thereof. 

G. Inducing or attempting to induce by any means any party to a contract 
with a member of the Code to violate such contract. 

H. Aiding or abetting any person, firm, association, or corporation in any unfair 
practice. 

I. Making or giving to any purchaser of any product any guaranty or pro- 
tection in any form against decline in the market price of such product. 

J. Stating in the invoice of any product as the date thereof a date later than the 
date of the shipment of such product, or including in any invoice any product 
shipped on a date earlier than the date of such invoice. 

K. Making any sale or contract of sale of any product under anj' description 
which does not fully describe such product in terms customarily used in the 
Industry. 

L. Rendering to any purchaser of any product in or in connection with the 
sale of such product any service, unless fair compensation for such service shall 
be paid by such purchaser. 

M. Any violation of any other provision of the Code, whether or not therein 
expressed to be such, or using or employing any practice not hereinabove in this 
Schedule H described which the Board of Directors bj- the affirmative vote of 
three fourths of the whole Board shall have declared to be a practice that would 
tend to defeat the policy of Title I of the National Industrial Recovery Act and, 
therefore, an unfair practice, and of which determination bj' such Board the Secre- 
tary shall have given notice to the members of the Code and to the President. 

(207) 

o 



Approved Code No. 12 
CODE OF FAIR COMPETITION 

FOR THE 

PHOTOGRAPHIC MANUFACTURING INDUSTRY 

As Approved on August 19, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
comj)liance with the provisions of Title I of the National Industrial 
Kecovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Photographic Manufacturing Industry, 
and hearings having been held thereon, and the Administrator having 
rendered his report containing an analysis of the said Code of Fair 
Competition, together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
jDrovisions of Title I of said Act, and that the requirements of clauses 
(1) and (2) of subsection (a) of Section 3 of the said Act have been 
met : 

Now, Therefore, I, Franklin D. Roosevelt, President of the United 
States, pursuant to the authority vested in me by Title I of the 
National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recomanendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and is hereby approved, subject to the following 
condition : 

(1) To effectuate further the policies of the Act, a Photographic 
Manufacturing Industry Committee be created to cooperate with the 
Administrator as a Planning and Fair Practice Agency for the 
Photographic Manufacturing Industry, which Committee shall con- 
sist of seven representatives of the Photographic Manufacturing- 
Industry elected by a fair method of selection, to be approved by 
the Administrator, and three members without vote appointed by the 
Administrator. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dTninistratoT. 

The White House, 

August 19, 1933. 

29853 296-133 34 (209) 



NATIONAL RECOVERY ADMINISTRATION 

Introduction 

To the President : 

This is a report of the hearing on the Code of Fair Competition 
for the Photographic Manufacturing Industry in the United States, 
conducted in Washington on August 4th, 1933, in accordance with 
the provisions of the National Industrial Recovery Act. 

In the conduct of the hearing every person who had filed a request 
for an appearance was freely heard in public and all statutory and 
regulatory requirements were fully fulfilled. 

The Code which is attached was presented by duly qualified and 
authorized representatives of the industry, and complies with the 
statutory requirements, as representing fully eighty percent of the 
Photographic Manufacturing Industr}^ in the United States, 

Economic and Statistical Analysis 

Commodities produced by the Photographic Manufacturing 
Industry had, in 1929, an aggregate value of $102,827,386, ranking 
119th in value of products when compared to other industries for 
that year. In 1931 the aggregate value was $79,506,499, representing 
a decrease of 22.7 percent. This industry produces photographic 
materials and apparatus including all types of cameras, sensitized 
material, projectors, films, plates, and other pertinent equipment, but 
this Code does not include professional motion-picture cameras and 
projectors, nor chemicals because of their distinctly different applica- 
tions and uses. A large proportion of the total business volume of 
this industry is represented by comparatively few companies. Be- 
cause of the obscurity of data on separate types of commodities 
manufactured by the industry, the only information available is for 
commodities manufactured by the industry as a whole. Materials 
used by the photographic apparatus and materials industry, in the 
production of its products, can be traced back to almost every raw- 
material source. This industry is economically related to many 
another industry by virtue of the diversity of its consumption of 
other finished commodities. 

The peak year for the photographic apparatus industry was 1929. 
In this year the average purchasing power of the wage earner was 
$30.42 per week. This is considerably above the $25.28 average for 
all industry in the same year. 

In 1931 the average purchasing power dropped but 22 percent, 
or to an average of $23.71, as compared with a drop of 16.2 percent 
for all industry. 

The number of employees in this industry in 1929 was 16,360 per- 
sons. Employment from 1929 to 1931 declined 18.2 percent. 

(210) 



211 



There is no specific information available at the present time to 
show the number of employees in this industry or the hours they are 
actually employed. However, the following table for 1931 classifies, 
according to hours per week, the number of employees and establish- 
ments and the percentage of distribution. 

Hours of labor per ivcek hy number of establishments and number of wage 

earners, 1931 



Hours 


Number 
of estab- 
lishments 


Number 

workers 

employed 


Percent 

of total 

employed 


Hours not reported. 


2 
44 
46 
18 


4 

941 

9,413 

251 




44 hours or less 


8.9 


45 to 48 hours, inclusive--. . . . . . - - . . 


88.7 




2.4 






Total 


110 


10, 609 


100.0 







This Code specifically provides thirty-five cents ($0.35) per hour 
or fourteen dollars ($14.00 ) per week for 40 hours of labor, except that 
learners mnj be paid not less than 80 percent of this minimum wage 
during a period limited to 60 days and that the total amount paid to 
such learners shall not exceed in any calendar month 5 percent of the 
total wages paid by the employer. 

There is a provision in this Code for 144 hours per year in excess of 
the maximum, limited by a requirement that the average hours 
worked per week shall not exceed 40 hours when averaged over a 
period of three months. This is due to definite seasonal demand and 
a perplexing problem peculiar to this industry because of the perish- 
able nature of the sensitized products, and a necessity for pursuance 
to completion of attendant processes, when once begun. 

It is estimated that on the basis of 1931 figures, the 40-hour week 
would place no additional burden on the ultimate consumer. If 
wages were maintained on the basis of 1929 figures the price to the 
consumer would increase 7.8 percent on a 40-hour basis, whereas a 
36.7-hour basis would increase this price 9.3 percent. 

In order to further effectuate the policies of the Act, it is recom- 
mended that the Administrator appoint a Photographic Manufactur- 
ing Industry Committee to cooperate with the Administrator as a 
planning and fair practice agency for this Industry; and that this 
committee consist of seven representatives of the Photographic 
Industry elected by fair method with the approval of the Adminis- 
trator and of three members appointed by the Administrator, as 
follows : One of recognized experience and technical knowledge from 
a recognized institution of learning; one to represent the Adminis- 
trator; and one of recognized ability in the Photographic Manufac- 
turing Industry but without direct personal interest therein. 

It is believed that this hearing, which has brought together all 
diversified branches of the Photographic Manufacturing Industry, 
is an excellent example of cooperative spirit and evidences a sincere 
desire on the part of this Industry to manifest the attitude anticipated 
in the National Recovery Act. 



212 

It is further believed that actual facts obtained through the anal- 
ysis of statistics and reports as provided in this Code will form a. 
basis, in the future, for any revisions required to provide for the 
needs of this Industry. 

FINDINGS 

The Administrator finds that — 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limita- 
tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

(b) The ajiplicant group imposes no inequitable restrictions on 
admission to membership therein and is trul}^ representative of the 
Photographic Manufacturing Industry; and that 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or oppress small enterprises and will not operate 
to discriminate against them, and will tend to effectuate the policy 
of Title I of the National Industrial Recovery Act, 

It is recommended, therefore, that this Code be immediately 
adopted. 
Respectfully submitted. 

Hugh S. Johnson, 

A dministrator^ 



CODE OF FAIR COMPETITION 

FOR THE 

PHOTOGRAPHIC MANUFACTURING INDUSTRY 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, during the period of the emergency, by reducing and 
relieving unemployment, improving the standards of labor, eliminat- 
ing competitive practices destructive of the interests of the public, 
employees and employers and otherwise stabilizing the Photo- 
graphic Manufacturing Industry and by increasing the consumption 
of industrial and agricultural products by increasing purchasing 
power, and in other respects, the following provisions are established 
as a Code of Fair Competition for the Photographic Manufacturing 
Industry : 

I 

Definitions. — A. The term " Photographic Manufacturing In- 
dustry " as used herein is defined to mean the manufacture of any 
of the following photographic products : 

(a) Cameras, exclusive of professional motion-picture cameras 
using film having a width of 35 mm. or greater. 

(b) Motion-picture projectors, exclusive of professional motion- 
picture projectors using film having a width of 35 mm, or greater. 

(c) Amateur and professional photographic film, plates, and paper. 

(d) Photographic accessories, equipment, and supplies, except 
photographic mounts and photographic chemicals. 

B. The term " employees " as used herein shall include all persons 
employed in the conduct of such operations, excepting those persons 
who serve in executive, administrative, supervisory, sales, special 
accounting, and/or technical capacities. 

C. The term " employers " shall include partnerships, associations, 
trusts, including trustees in bankruptcy and receivers, corporations, 
and all persons who employ labor in the conduct of any branch of the 
Photographic Manufacturing Industry as defined above. 

D. The term " effective date ", as used herein, is defined to be the 
tenth day after the approval by the President of the United States 
of this Code or any part thereof or addition thereto. 

II 

On and after the effective date the minimum wage that shall be 
paid any employee in the Photographic Manufacturing Industry 
shall be "at the rate of thirty-five cents ($0.35) an hour, or fourteen 
dollars ($14.00) per week for forty (40) hours of labor except that 
learners may be paid not less than eighty percent (80%) of such 
minimum wage during a period limited to sixty (60) days; that the 
total amount paid to such learners shall not exceed in any calendar 
month five percent (5%) of the total wages paid to all employees of 

(213) 



214 

such employer during such month; and provided further, that the 
provisions of this paragraph shall not apply to apprentice machin- 
ists and apprentice toolmakers who are now under contract with their 
employer under forms approved by the National Metal Trades Asso- 
ciation or any branch of such association. 

Ill 

On and after the effective date the maximum hours of labor for 
employees shall be forty (40) hours per week, subject to the following 
limitations and exceptions: 

A. That the average hours worked per week by any individual em- 
ployee shall not exceed the maximum established when figured over 
a period of three (3) months. 

B. That the maximum hours established shall not apply in cases of 
emergency or in those departments or divisions of the Photographic 
Manufacturing Industry in which seasonal or peak demand places an 
unusual and temporary burden for production upon such departments 
or divisions, except that in all such cases no employee shall be per- 
mitted to work more than an aggregate of one hundred forty-four 
(144) hours per year in excess of the maximum limitations above 
provided. 

C. That the maximum hours established shall not apply to em- 
ployees engaged in research and experimental capacities or to emul- 
sion makers engaged in secret processes, or to designing and tooling 
engineers. 

D. That the maximum hours established shall not apply to repair 
shop crews, outside crews, and cleaners, but further provided that all 
such employees shall be paid at the rate of time and one half for all 
hours per week over forty. 

IV 

On and after the effective date emplo3'ers shall not employ or have 
in their employ any person under the age of sixteen (16) years. 

V 

As required by Section 7 (a) of Title I of the National Industrial 
Recovery Act the following provisions are conditions of the Code : 

"(1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities of the purpose of 
collective bargaining or other mutual aid or protection ; 

"(2) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and 

"(3) That employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment, 
approved or prescribed by the President." 



215 

VI 

With a view to keeping the President of the United States and the 
Administrator informed as to the observance or nonobservance of 
this code, and as to whether the Photographic Manufacturing In- 
dustry is taking appropriate steps to effectuate in all respects the 
declared policy of the National Industrial Recovery Act, each em- 
ployer shall prepare and file with the Code Committee of the Photo- 
graphic Manufacturing Industry, composed of seven members, herein- 
after appointed, and at such times and in such manner as may be 
prescribed, statistics covering number of employees, wage rates, em- 
ployee earnings, hours of work, and such other data or information 
as the Code Committee of the Photographic Manufacturing Industry 
may from time to time require for tlie use of the Administrator. 

Except as otherwise provided in the National Industrial Recovery 
Act all statistics, data, and information filed in accordance with the 
provisions of Article VI shall be confidential, and the statistics, data, 
and information of one employer shall not be revealed to any other 
employer except that for the purpose of administering or enforcing 
the provisions of this Code, the Code Committee of the Photographic 
Manufacturing Industry shall have access to any and all statistics, 
data, and information that may be furnished in accordance with the 
provisions of this code. 

If formal complaint shall be made to the Code Committee that any 
of the provisions of this Code have been violated by any employer 
in the Photographic Manufacturing Industry, the Code Committee 
shall promptly investigate the facts and to that end may cause such 
examination to be made as may be deemed necessary in the circum- 
stances, the result of such examination to be reported, if required, to 
the National Industrial Recovery Administration. 

VII 

If any emploj^er in the Photographic Manufacturing Industry is 
also an employer of labor in any other industry the provisions of this 
Code shall apply to and affect only that part of the business of such 
employer which is included in the Photographic Industry. 

VIII 

This Code and all the provisions thereof are expressly made subject 
to the right of the President, in accordance with the provisions of 
Clause 10 (b) of the National Industrial Recovery Act, from time to 
time to cancel or modify any order, approval, license, rule, or regula- 
tion issued under Title I of said i\-ct and specifically to the right of 
the President to cancel or modify his approval of this Code or any 
conditions imposed by him upon his approval of this Code. 

IX 

Such of the provisions of this Code as are not required to be in- 
cluded therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated that 
from time to time supplementary provisions to this Code or addi- 



216 

tional conditions will be submitted for the approval of the President 
to prevent unfair competition in prices and other unfair destructive 
and competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Recovery Act, pro- 
vided, however, that no modification or amendment of this Code shall 
be made by the members of the Code without the consent in writing 
of members employing at the time at least two thirds in number of 
the employees subject to the provisions of this Code. 

X 

All of the provisions of this Code, unless revised, modified, or re- 
pealed as hereinabove provided, shall remain in full force and effect 
until the expiration date of Title I of the National Industrial 
Recovery Act. 

M. B. Folsom is hereby appointed Secretary of the Code Commit- 
tee. His duties shall be to accept and file applications for member- 
ship in the Code, to keep records of all proceedings relating to this 
Code, and to conduct correspondence with members of the Code re- 
lating to all matters arising under the Code. In case of his resigna- 
tion or death or inability for any reason to act, his successor shall 
be selected by the then members of the Code. 

XII 

L. Dudley Field. E. H. Gates, Sherman Hall, Thomas J. Hargrave^ 
J. H. McNabb, Gilbert E. Mosher, and Richard Salzgeber are hereby 
appointed the seven members of the Code Committee. Any member 
of the Code Committee may act either in person or by proxy. In 
case of the resignation, death, or incapacity to act of any member 
of the Code Committee, his successor shall be selected by the then 
members of the Code. 

By L. Dudley Field. 

E. H. Gates. 

Sherman Hall. 

Thomas J. Hargrave. 

J. H. McNabb. 

Gilbert E. Mosher. 

Richard Salzgeber. 

I, M. B. Folsom, Secretary of the Code Committee of the Photo- 
graphic Manufacturing Industry, do hereby certify that the fore- 
going is a true copy of the Code of Fair Competition for the Photo- 
graphic Manufacturing Industry submitted to the Administrator 
under the National Industrial Recovery Act on July 27. 1933, as 
amended by authority of the Code Committee of the Photographic 
Manufacturing Industry. 

[seal] (s) M. B. Folsom, 

M. B. Folsom, 
Secretary of the Code Cormnittee, 

Dated August 11, 1933. 

Approved Code No. 12. 
Registry No. 1649-1-01. 

o 



Approved Code No. 13 
CODE OF FAIR COMPETITION 

FOR THE 

FISHING TACKLE INDUSTRY 

As Approved on August 19, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Fishing Tackle Industry, and hearings 
having been held thereon and the Administrator having rendered his 
report containing an analysis of the said Code of Fair Competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies with the pertinent provisions of Title I of 
said Act: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approved, subject to the follow- 
ing condition : 

(1) The Associated Fishing Tackle Manufacturers shall, as soon 
as practicable, amend the By-Laws of said Association by repealing 
that provision which requires a vote of a majority of the Executive 
Committee or of the members for election to membership in the 
Association. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Administrator. 
The White House, 

August 19, 1933. 

29907 296-134 34 (217) 



CODE OF FAIR COMPETITION 

FOR THE 

FISHING TACKLE INDUSTRY 



For the purpose of increasing employment, establishing fair and 
adequate wages, effecting necessary reduction of hours of labor, im- 1 
proving standards of labor, and eliminating unfair trade practices, 
to the end of rehabilitating the fishing tackle industry, and enabling i 
it to do its part towards establishing that balance of industry which 
is necessary to the restoration and maintenance of the highest degree 
of public welfare, the following is established as the Code of Fair 
Competition for the fishing tackle industry. 

Article I — Definitions 

Section 1. The term " Fishing Tackle Industry " as used herein 
shall include the manufacture of wood fishing rods; metal fishing 
rods; fishing reels; fishing lines; flies; snelled hooks; gut and wire 
leaders; baits, including all wood, metal, composition, and preserved 
lures; fishing hooks; floats, furnished lines and sinkers; sundries, 
including creels, tackle boxes, minnow buckets, bait boxes, fly books 
and boxes, rod cases, reel cases, and tackle containers of all kinds; 
landing nets, dip nets, minnow seines and nets, nets for crabs 
and other live baits; gaffs and gaff hooks; rod mountings and parts; 
swivels and snaps and all other accessories such as scalers, disgorgers, 
stringers, fish knives, and any other article of fishing tackle not 
specifically mentioned herein. , 

Sec. 2. The term " manufacturer " as used herein shall include 
all natural persons, partnerships, associations, corporations, and 
trusts, including trustees in bankruptcy and receivers, engaged in 
the conduct of any branch of the Fishing Tackle Industry. 

Article II — Standards or Labor and Employment 

Section 1. To effectively apply to the Fishing Tackle Industry 
the letter and spirit of Section 7 (a) of the National Industrial 
Recovery Act, it is a stipulation of this Code that : 

(a) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall b^ 
free from all interference, restraint, or coercion of employers of j 
labor, or their agents, in the designation of such representatives, or 
in self -organization, or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing. 

(218) 



219 

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President of the United States. 

Sec. 2. On and after the effective date no manufacturer shall em- 
ploy any minor under the age of 16 years, provided, however, that 
where a State law provides a higher minimum age no manufacturer 
shall employ within that State any person below the age specified by 
such State law. 

Sec. o. All manufacturers within the Industry shall comply with 
the following conditions pertaining to maximum hours of labor and 
rates of i^ay : 

(a) On and after the effective date no manufacturer shall operate 
upon a schedule of hours of labor for his employees — except office, 
supervisory staff', and sales force — in excess of forty (40) hours per 
week and eight (8) hours per day; the maximum hours of labor for 
office employees shall not exceed forty (40) hours a week averaged 
over each period of six (6) months based upon the usual fiscal year 
of any manufacturer. 

(b) On and after the effective date the minimum rate of wages 
shall be not less than thirty-five cents (35^) per hour, provided, how- 
ever, that where a State law provides a higher minimum wage no 
person employed within that State shall be paid a wage below that 
required by such State law. Home workers and workers whose re- 
muneration is dependent upon quantity and/or quality of production 
shall in no case receive less than the above specified hourly rate of 
pay. 

(c) The amount of difference existing on July 15, 1933, between 
wage rates paid various classes of employees receiving more than the 
established minimum wage shall not be decreased ; and in no event 
shall any employee be paid a less wage for a work week of forty (40) 
hours than such employee was receiving for the same class ol work 
for the longer week prevailing prior to the effective date of this Code. 

Article III — Trade Practices 

Fair and constructive competition is to be encouraged at all times, 
but, in order that the Fishing Tackle Industry may be rehabilitated, 
unfair and destructive competition, wastes, and excesses must be 
eliminated. Each manufacturer shall comply with the following 
trade practices and violation of any of them shall be deemed an act 
of unfair competition within the meaning of the Federal Trade 
Commission Act: 

Section 1. Sales heloio cost of production and, distHhution. — In 
order to prevent destructive price cutting in the Industry, no manu- 
facturer shall sell or offer for sale any product at a price less than 
its " reasonable cost of production and distribution," except as pro- 
vided in Sections 2 and 3 of this Article. The Fishing Tackle Indus- 
try Code Committee provided for in Article IV hereinafter, shall, 
subject to the approval of the Administrator, set up as soon as prac- 
ticable a standard method of cost accounting for the Industry. Said 
Committee shall, subject to the approval of the Administrator, define 
" reasonable cost of production and distribution " for the purposes 



220 

of this Code and determine upon a basis to be uniform among the 
manufacturers of this Industry tlie character of the items to 
be included within such " reasonable cost of production and 
distribution." 

Sec. 2. Sales to Other Manufacturers. — In order to better dis- 
tribute employment and to prevent overproduction capacity, noth- 
ing in this Code shall prevent one manufacturer from selling his 
product to another bona fide fishing tackle manufacturer at prices 
mutually agreed upon, providing such sales are made at prices not 
less than " factory costs," and further providing that the purchasing 
manufacturer complies with the provisions of this Code when re- 
selling said merchandise. All such sales or agreements for such sales 
between manufacturers shall be reported within the first ten days 
of the month following to the executive officer of the Fishing Tackle 
Industry Code Committee. Said Committee shall, subject to the 
approval of the Administrator, define " factory costs " for the 
purposes of this Code. 

Sec. 3. Close Out Merchandise. — Mill ends, dropped lines or sur- 
plus stocks which must be converted into cash, may be sold at such 
prices as are necessary, provided such merchandise shall not be sold 
at a price less than the direct cost of labor and raw materials. The 
total of all such sales, with the lowest unit price indicated, shall be 
reported within the first ten days of the month following to the 
executive officer of the Fishing Tackle Industry Code Committee. 

Sec. 4. Refusing to Sell Other Products or Items. — No manufac- 
turer shall refuse to sell one class of product or item to a customer 
except on condition the purchaser w^ill also purchase other products 
or items made or sold by the same manufacturer; or sell such other 
products at reduced prices or on special terms or under special con- 
ditions given to induce the buyer to purchase such other different 
classes of articles. Each manufacturer shall sell each different line 
of merchandise independently, and shall not cut the price on one 
with the provision that other lines be purchased, or require a pur- 
chaser to purchase one class of merchandise as a consideration for 
being allowed to purchase another. 

Sec. 5. Terms. — Terms to customers buying at jobber prices shall 
be 2% ten days E.O.M., 60 days net from date of invoice; no dating; 
no sales or shipments on consignments; and any interest allowed for 
anticipated payment of invoices shall not exceed the rate of six per- 
cent (6%) per annum. 

Sec. 6. Advertising Ethics. — No manufacturer shall use false or 
misleading statements or illustrations in catalogs or any form of 
advertisement. 

Article IV — Administration 

Section 1. To effectuate further the policies of the Act, a Fish- 
ing Tackle Industry Code Committee is hereby designated to co- 
operate with the Administrator as a planning and fair-practice 
agency for the Fishing Tackle Industry. This Committee shall con- 
sist of five representatives of the Industry elected by a fair method 
of selection, to be approved by the Administrator, and three mem- 
bers without a vote appointed i3y the President of the United States. 



221 

Such agency may, with the approval of a majority of the members 
of the Associated Fishing Tackle Manufacturers, present to the 
Administrator recommendations based on conditions in the Industry 
as they may develop from time to time which will tend to effectuate 
the operation of the provisions of this Code and the policy of the 
National Industrial Recovery Act. Such recommendations shall, 
upon approval by the Administrator, become operative as a part 
of this Code. 

Sec. 2. Such agency is also set up to cooperate with the Admin- 
istrator in making investigations as to the functioning and observ- 
ance of any provisions of this Code, at its own instance or on com- 
plaint by any person affected, and to report the same to the Admin- 
istrator. 

Sec. 3. Such agency is also set up for the purpose of investigating 
and informing the Administrator on behalf of the Fishing Tackle 
Industry as to the importation of competitive articles into the 
United States in substantial quantities or in increasing ration to 
domestic production on such terms or under such conditions as to 
render ineffective or seriously to endanger the maintenance of this 
Code, and as an agency for making complaint to the President on 
behalf of the Fishing Tackle Industry, under the provisions of the 
National Industrial Recovery Act, with respect thereto. 

Sec. 4. The Secretary-Treasurer of The Associated Fishing Tackle 
Manufacturers shall be the executive officer of the Fishing Tackle 
Industry Code Committee. 

Sec. 5. In order to provide data necessary for the administration 
of this Code, all manufacturers shall furnish to the office of the 
Secretary-Treasurer of The Associated Fishing Tackle Manufac- 
turers such information or reports as may be required, subject to 
the approval of the Administrator, by the Fishing Tackle Industry 
Code Committee. Such information as may be submitted to the 
Secretary-Treasurer by one manufacturer shall not be revealed to 
any other manufacturer except as may be required by the Fishing 
Tackle Industry Code Committee to effectuate the purposes of this 
Code. 

Sec. 6. Any manufacturer may participate in any activities of The 
Associated Fishing Tackle Manufacturers, by assuming a proper 
pro rata share of the cost and responsibility of administering this 
Code, either by becoming a member of The Associated Fishing 
Tackle Manufacturers or by paying to it an amount equal to the 
dues from time to time provided to be paid by a member in like 
situation. 

Article V — General 

Section 1. This Code shall be in effect beginning ten days after its 
approval by the President of the United States. 

Sec. 2. Any contract in effect on the effective date of this Code 
shall be reported to the executive officer of the Fishing Tackl'e 
Industry Code Committee and said Code Committee shall act as 
an agency to assist in effecting appropriate adjustments of such con- 
tracts, by arbitral proceedings or otherwise, to reflect any increased 
costs due to the application of the provisions of this Code. 



222 

Sec. 3. In the event of the elimination of any provision of this 
Code for any cause whatsoever, the remaining provisions shall never- 
theless continue in full force and effect until modified or eliminated 
or until the expiration of the National Industrial Recovery Act. 

Sec. 4. It is expressly understood and agreed that no provision 
of this Code shall be interpreted or applied as in any way: 

(a) Tending to promote monopolies or the establishment of ex- 
orbitant prices by the industry ; 

(b) Permitting or encouraging unfair competition; 

(c) Tending to eliminate or oppress small enterprises or to dis- 
criminate against small enterprises. 

Sec. 5. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provision of Clause 10 (b) of the National Industrial Recovery Act, 
from time to time to cancel or modify any order, approval, license, 
rule, or regulation, issued under Title I of said Act, and specifically to 
the right of the President to cancel or modify his approval of this 
Code or any conditions imposed by him upon his approval thereof. 

Sec. 6. Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the app-'oval of the President, be modified or eliminated as changes 
in the circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions to this Code or 
additional codes will be submitted for the approval of the President 
to prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Recovery Act consistent 
with the provisions thereof. 

Approved Code No. 13. 
Registry No. 1G57/1/03. 

o 



Approved Code No. 14 

CODE OF FAIR COMPETITION 

FOR THE 

RAYON AND SYNTHETIC YARN PRODUCING 

INDUSTRY 

As Approved on August 26, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Kecovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Kayon and Synthetic Yarn Producing 
Industry, and hearings having been held thereon and the Adminis- 
trator having rendered his report containing an analysis of the said 
Code of Fair Competition together with his recommendations and 
findings with respect thereto, and the Administrator having found 
that the said Code of Fair Competition complies in all respects with 
the pertinent provisions of title I of said act and that the require- 
ments of clauses (1) and (2) of subsection (a) of section 3 of the said 
act have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do approve the report and adopt the findings of the Ad- 
ministrator and do order that said Code of Fair Competition be, and 
it is hereby, approved on the condition, compliance with which is 
hereby required, that reports shall be furnished from time to time to 
the Administrator by each employer of the industry setting forth 
information on wages, hours of labor, and such other matters in such 
form, manner, and detail as he may require. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. ' 

The White House, 

August 26^ 1933. 

(223) 
29846 296-135 34 



224 
To THE President : 

IXTKODUCTIOX 

This is a report of the Hearing on the Code of Fair Competition 
for the Ravon and Synthetic Yarn Producing Industry conducted in 
the Caucus Room of the Senate Office Building in Washington. D.C.. 
on July 27, 1933, in accordance Avith the provisions of the National 
Industrial Recovery Act. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The proponents of the code represented : 

(a) That the Rayon and Synthetic Yarn Producing Industry in 
the United States is composed of eighteen different companies, the 
total production of which is approximately 224,900,000 pounds 
per year. 

(b) That there are four processes used in the manufacture of 
rayon and synthetic yarn at the present time. These processes are : 

First — Viscose, 14 companies, 175,500,000 lb. per year. 
Second — Cellulose Acetate, 5 companies, 45,400,000 lb. per year. 
Third — Nitro-cellulose, 1 company, 8,000,000 lb. per year. 
Fourth — Cupra -ammonium, 2 companies, 6,000.000 lb. per year. 

(c) That all four of these processes are alike in that they start 
from the same raw materials, either purified cotton or wood pulp, 
and by chemical reactions make solutions which are afterwards spun 
into threads, the only differences being the chemicals used in the 
preparation of the solutions. 

(d) That all the yarns made by all four of the above processes are 
sold to the same classes of customers, in the great majority of cases 
interchangeably. This is not true in all cases, but does apply as a 
general rule. For example, the largest outlet for ravon and synthetic 
yarns is in the weaving industry and this industry uses yarns made 
by all four processes. 

(e) That the differences between the yarns are minor ones, such as 
differences in dyeing, differences in degree of lustre, differences in 
melting point, etc. 

From a review of the records it appears that this industry, in con- 
trast to most other manufacturing industries, has shown a remark- 
able resistance to the forces of the depression. Estimated yearlj^ out- 
put has shown an increase in each year since the industry became 
commercially important, until the year of 1932 when a recess of 9 
percent was reported. However, it is estimated that the production 
for the year of 1933 may exceed all previous records. 

The remarkable growth in the consumption of rayon since the war 
is explained in no small degree by the trend of prices. The average 
price in the peak year of 1919 was approximately $4.77 per pound 
(150 denier grade A), since which time prices have been reduced until 
the record low price of $0.55 per pound for the same grade was 
reached in April of 1933. Since that time prices have been increased 
to $0.65 per pound, which is approximately 47.5 percent below the 
average 1929 level. 



225 

The industry noyv employs approximately 41,000 persons, and in 
contrast to most otlier industries the number of wage earners in the 
industry in June of 1933 exceeded the average number employed in 
the industry in the year of 1929, and it is estimated that, after giving 
effect to the maximum hours in the code, the number of employees 
will exceed by more than ten percent the greatest number previously 
employed in the industry. 

No accurate statistics are available as to the average hours of work 
per -week in the industry, but study of the available data indicates an 
average employment week of 44.8 hours in the year of 1930 with a 
minimum of 37.4 in July of 1932 and 45.3 per week in June of 1933 — 
the code provides for a maximum of 40 hours per week. 

The average wages paid in the industry have been somewhat lower 
than the average wages for all manufacturing industry — $1,000 per 
annum in 1931 as compared to $1,102 for all manufacturing indus- 
try. As the Division of Research and Planning points out, this may 
be attributed to (a) a larger proportion of female employees (about 
30 percent compared with 13 percent for all industries) and (b) a 
lesser degree of skill required than is generally true in other branches 
of industry. 

On the other hand wages in this industry have suffered much less 
during the depression than those of other industries. Average 
weekly earnings of workers vary between a high of $21.87 in Novem- 
ber 1929 and a low of $15.62 in July 1932 — however, records show 
such average to have reached $16.27 in May 1933. A calculation on 
the basis of 1929 purchasing power of the dollar indicates that the 
aforesaid average wage in May, of 1933 had an actual '' real wage " of 
$23.55, or, in other words, the real earnings of labor in the rayon 
industry have increased during the depression. 

COXCLUSIONS 

The proponents of the code, in their application for approval 
stated that they represented approximately 80% of the number of 
companies engaged in the industry and approximately 90% of the 
production of rayon and synthetic yarn. 

In the report of the Deputy Administrator, which I hereby approve, 
it appears that : 

(1) The code establishes maximum hours and minimum wages for 
all employees in the industry, except those serving in executive, 
administrative, supervisory, outside sales and/or technical capacities. 

(2) The provision of the code relating to maximum hours of labor 
will bring about the employment of from 3,500 to 4,500 additional 
employees. 

(3) The minimum wage of $13.00 will directly affect more than 
6,000 employees and will result in a substantial increase in the wage 
rate paid to all employees. Moreover, that the mininuim wage 
expressed in terms of " real wage " adjusted to the cost of living index 
for the month of June of 72.8 percent (U.S. Department of Commerce 
Report of August) will exceed the minimum prevailing in the indus- 
try in the year of 1929. 



226 

(4) No employer in the industry will employ any minor under the 
age of 16 years, or provide a wage for apprentices of less than 85% 
of the minimum wage established by the code. 

I find that — 

(a) The code complies in all respects with the pertinent provisions 
of title I of the act, including, without limitation, sub-section (a) 
of section 7, and subsection (b) of section 10 thereof; and that 

(b) The code is not designed to promote monopolies or to elimi- 
nate or oppress small enterprises and will not operate to discriminate 
against them, and will tend to effectuate the policy of title I of the 
National Industrial Recovery Act. 

Accordingly, I hereby recommend the approval of the Code of Fair 
Competition for the Rayon and Synthetic Yarn Producing Industry. 
Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

RAYON AND SYNTHETIC YARN PRODUCING INDUSTRY 



To effectuate the policy of title I of the National Industrial 
Hecovery Act, during the period of the emergency, by reducing and 
relieving unemployment and improving the standards of labor, the 
following provisions are established as a code for the rayon and/or 
synthetic yarn producing industry : 

I. This code is based upon the fact that an inherent characteristic 
of the manufacture of synthetic yarns is that production must of 
necessity be continuous — the chemical and textile departments being 
in balance; thus any limitation of the hours of machinery cannot 
economically apply to the rayon and synthetic yarn producing indus- 
try and still have the industry survive. 

II. The term " rayon and synthetic yarn producing industry ", as 
used herein is defined to mean the manufacture of rayon and/or 
synthetic yarns from cellulose put up and packaged in forms suitable 
for the various consuming and fabricating branches of the textile 
industry. 

III. The term " effective date " as used herein is defined to be the 
fourteenth day after this code shall have been approved by the 
President. 

IV. The term " employees " as used herein shall include all persons 
employed in the conduct of the rayon and synthetic yarn producing 
industry. The term " employers " as used herein shall include all 
natural persons, partnerships, associations, corporations, and trusts, 
including trustees in bankruptcy and receivers, who employ labor in 
the conduct of any branch of the rayon and synthetic yarn producing 
industr3\ 

y. On and after the effective date, employers in the rayon and 
synthetic yarn producing industry shall operate on the following- 
schedule of hours of labor and wages : 

(a) The maximum hours of labor of all employees — except those 
serving in executive, administrative, supervisory, outside sales and/or 
technical capacities^ — shall be fort)^ per week, subject to the flexible 
provision that the average hours worked per week by any individual 
employee not exempt from this provision shall not exceed the maxi- 
mum established when figured over a period of four weeks. In cases 
of emergency the maximum hours as applied to maintenance and 
repair crews may be extended for the time of the emergency only, in 
which latter event a record shall be made of the circumstanc<'s ami 
reported to the agency hereinafter provided for in Article VIII. 

(b) Inasmuch as some manufacturers of this industry have already 
made souie adjustments in hours and wages, and have recently raisi>d 

(227) 



228 

rates of pay, and inasmuch as this code now proposes in clause (a) 
next preceding to establish a uniform practice of 40 hours maximum 
employment for employees, no employee — except those exempted in 
clause (a) next preceding — shall after the effective date receive for the 
said 40-hour period of work less compensation than was received or 
would have been received by said employee for 48 hours of labor, as 
of 1 May 1933 ; and on and after the effective date, the minimum wage 
which shall be paid by employers in the rayon and synthetic yarn 
producing industry to any emploj^ee — except those exempted in 
clause (a) next preceding — whether the wage is based upon productive 
effort or efficiency or hourly rates, shall be at the rate of $13.00 per 
week for 40 hours of labor — except apprentices during a period lim- 
ited to six weeks shall be paid at the rate of 85% of the minimum 
wage specified herein. 

VI. No employer in the rayon and synthetic yarn producing 
industry shall employ ruj minor under the age of sixteen years. 

VII. Employers shall compl}^ with the requirements of section 7 
(a) of title I of the National Industrial Recovery Act as follows: 

1. Emj^loyees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

2. No emploj^ee and no one seeking employment shall be required 
as a condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing. 

3. Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

VIII. The industry shall set up within itself an agency to cooper- 
ate with the Administrator in the administration and enforcement 
of this code. 

IX. The President may from time to time cancel or modify any 
order, approval, license, rule, or regulation issued under title I of 
the National Industrial Eecovery Act. 

Approved Code No. 14. 
Registry No. 259/01. 



Approved Code No. 15 
CODE OF FAIR COMPETITION 

FOR THE 

MEN'S CLOTHING INDUSTRY 
As Approved on August 26, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
f^ompliance with the provisions of Title I of the National Industrial 
Eecovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Men's Clothing Industry, and hearings 
having been held thereon and the Administrator having rendered 
his report containing an analysis of the said Code of Fair Competi- 
tion together with his recommendations and findings with respect 
thereto, and the Administrator having found that the said Code of 
Fair Competition complies in all respects with the pertinent pro- 
visions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of Section 3 of the said Act have 
been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and it is herebj^ approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Adrwinistrator. 

The White House, 

August 26, 1933. 

(229) 

29845 206-136 34 



August 23, 1933. 
The President, 

The White House. 

My Dear Mr. President : I have the honor to submit and recom- 
mend for your approval, the Code of Fair Competition for the Men's 
Clothing Industry. The Code has been approved by the Labor 
Advisory Board, the Consumers' Advisory Board, and the Industrial 
Advisory Board. 

An analysis of the provisions of the Code has been made by the 
Administration and a complete report is being transmitted to^ you. 
I find that the Code complies with the requirements of clauses 1 and 
2, subsection (a) of Section 3 of the National Industrial Eecovery 

I am, my dear Mr. President, 

Very sincerely yours, 

Hugh S. Johnson, 

Adrmnistrator^ 
(230) 



CODE OF FAIR COMPETITION 

FOR THE 

MEN'S CLOTHING INDUSTRY 



To effectuate the policy of Title I of the National Industrial Recov- 
■eiY Act, during the period of the emergency, by reducing and reliev- 
ing unemployment, improving the standards of labor, eliminating 
•competitive practices destructive of the interests of the public, em- 
ployees, and employers, relieving the disastrous effects of over- 
capacity, and otherwise rehabilitating the Clothing Industry and by 
increasing the consumption of industrial and agricultural products 
hj increasing purchasing power, and in other respects, the following 
provisions are established as a code of fair competition for the 
Clothing Industry : 

I — Definitions 

The term " Clothing Industry "' as used herein is defined to mean 
the manufacture of men's, boys', and children's clothing, uniforms, 
single knee pants, single pants, and men's summer clothing (exclusive 
•of cotton wash suits). 

The term " effective date " as used herein is defined to be the 
eleventh day of September 1933. 

The term " persons " shall include, but without limitation, natural 
persons, partnerships, associations, and corporations. 

II 

On and after the effective date, the minimum wage paid by em- 
ployers in the Clothing Industry to any of their manufacturing 
employees shall be at the rate of forty cents (40^) per hour when 
employed in the northern section of the Industry, and at the rate of 
thirty-seven cents (37^) per hour when employed in the southern 
section of the Industry ; and to any nonmanuf acturing employee the 
minimum weekly wage paid shall be fourteen dollars ($14.00) in the 
northern section and thirteen dollars ($13.00) in the southern section. 
"Southern section " shall include Alabama, Arkansas, Georgia, Loui- 
siana, Mississippi, North Carolina, Oklahoma, South Carolina, 
Tennessee, and Texas. 

The minimum wage paid by employers to employees working on 
single knee pants shall be at the rate of thirty-seven cents (37^) per 
hour. 

(a) On and after the effective date, the minimum wage which shall 
be paid to cutters shall be at the rate of One Dollar ($1.00) per 
hour, and the minimum wage which shall be paid to off-pressers shall 
be at the rate of seventy-five cents (75^) per hour. 

(b) The existing amounts by which wages in the higher-paid 
classes, up to classes of employees receiving Thirty Dollars ($30.00) 
per week, exceed wages in the lowest-paid substantial classes shall 
be maintained. 

(231) 



232 

(c) Any increase of the miniminn wage made effective between the- 
date of the filing of this Code, to wit. July 14, 1933, and the effective 
date, shall be disregarded and shall have no effect in connection withi 
determining the wages to be paid in the higher-price classes as 
provided for in Section II (b) above. 

(d) The Men's Clothing Code Authority may appoint a committee 
to supervise the execution of the foregoing provisions. 

(e) The provisions for the minimum wage established in this Code 
shall constitute a guaranteed minimum rate of pay in connection 
with both a time rate or a piecework basis of compensation. 

(f) No increases in the amount of production or work shall be 
required of employees for the purpose of avoiding the benefits to 
employees prescribed by this Code in respect of wages and hours of 
employment, 

AH requirements in respect of such increases shall be reported to. 
the Men's Clothing Code Authority. 

Ill 

Three (3) months after the effective date a manufacturer shallnot' 
be permitted to have work done or labor performed on any garment, 
or part thereof in the home of a worker. All work done for a manu- 
facturer on a garment or part thereof shall be done in what, is. 
commonly known as an inside shop or in a contracting shop. . 

IV 

On and after the effective date, the hours of employment for em^- 
ployees in the Clothing Industry, except repair shop crews, engineers,., 
electricians, firemen, office and supervisory staff, stock clerks, ship- 
ping clerks, truck drivers, porters and watchmen, and except employ- 
ees engaged in bona fide managerial or executive capacities shall not 
exceed thirty-six (36) hours per week nor eight (8) hours per day.. 
Employers shall not operate productive machinery in the Clothing' 
Industry more than one shift of thirty-six (36) hours per week.. 
It is intended that the foregoing provisions for maximum hours shall 
establish the maximum hours of labor per week of every employee,, 
other than those employees excepted therein, so that under no cir- 
cumstances will an employee be employed or be permitted to work: 
for any one or more employers in the Industry an aggregate ini 
excess of the prescribed number of hours in any single week. 

Repair shop crews, engineers, electricians, firemen, office and super- 
visory staff, stock clerks, shipping clerks, truck drivers, porters, and 
watchmen shall not work in excess of an average of forty (40) hours; 
per week during any year beginning with the effective date. 

It is intended that employees' wages shall not be reduced by reason 
of the reduction of the prescribed number of hours of employment. 

Tailoring to the Trade and manufacturers of uniforms shall be 
permitted overtime at regular rates during peak seasons, the number- j 
of hours and the number of weeks to be determined by The Men's 
Clothing Code Authority. 

All garments manufactured or distributed shall bear an N.R.A. 
label, which shall remain attached to such garments. Such label|* 



I 



233 

shall bear a registration number specially assigned to each manufac- 
turer in the Industry. The privilege of using such labels shall be 
granted and such labels shall be issued to any manufacturer from 
time to time engaged in the Clothing Industry upon application 
therefor to the Code Authority, accompanied by a statement of com- 
pliance with the standards of operation prescribed by this Code. The 
privilege of using such labels and the issuance thereof may be with- 
drawn and cease or may be suspended in respect of anj^ such manu- 
facturer whose operations, after appropriate hearing by The Men's 
Clothing Code Authority and review by the Administrator, shall be 
found to be in substantial violation of such standards. Manufac- 
turers shall be entitled to obtain and use such labels if they comply 
with the provisions of this Code. 

The Men's Clothing Code Authority may establish appropriate 
machinery for the issuance of such labels in accordance with the 
foregoing provisions. 

VI 

On and after the effective date, employers in the Clothing Industry 
shall not employ any minor under the age of sixteen (16) years. 

VII 

Safe, healthful, and otherwise satisfactory working conditions 
shall be provided for all employees, which conditions shall as a 
minimum comply with the highest standards respecting sanitation, 
cleanliness, light, and safety specified in the Factory Laws of any 
State in which the manufacturer operates, 

VIII 

With a view of keeping the President informed as to the observance 
or nonobservance of this code of fair competition, and as to whether 
the Clothing Industry is taking appropriate steps to effectuate the 
declared policy of the National Industrial Recovery Act, each person 
engaged in the Clothing Industry will furnish every four weeks duly 
certified reports showing in substance : 

(a) Pay-roll data, showing by sex and occupation, number of 
people employed, number of hours worked, and the rates of wages 
paid. 

(b) Production data showing the number and type of garments 
cut and made up, in such form as may hereafter be provided by the 
Men's Clothing Code Authority. 

The Men's Clothing Code Authority as hereinafter provided is 
constituted the agency to collect and receive such reports. 

IX 

Where the costs of executing contracts already entered into in the 
Clothing Industry are increased as a result of the enactment of the 
National Industrial Recovery Act and by the provisions of this Code, 
it is equitable and promotive of the purposes of the Act that appro- 
priate adjustments of such contracts to reflect such increased costs be 
arrived at by arbitral proceedings or otherwise and the Men's 
Clothing Code Authority, as hereinafter provided, is designated to 
assist in effecting such adjustments. 



234 

. X . ^ 

On and after the effective date, it shall be unfair competition for J 
any manufacturer in the Clothing Industry, either directly or in- 
directly, to sell its manufactured product at a price below its cost as j 
determined without any subterfuge in accordance with sound ac- \ 
counting practice. Cost shall include the cost of piece goods con- j 
sumed, trimmings, cutting, and making; and a percentage on the \ 
selling price to cover all overhead. 

There shall be excepted, however, from the provisions of this 
Section, seasonal clearances of merchandise, and the following dates 
are fixed for such seasonal sales : 

Wool Suits. Spring Season On and after May 15tli. 

Wool Suits. Fall Season On and after November 15th. 

Summer Clothing On and after June 15th. 

Overcoats On and after December 15th, 

Dropped lines or surplus stocks, sometimes designated as 
^' closeouts ", or inventories which must be converted into cash to 
meet immediate needs, may be sold on dates prior to those mentioned 
in the preceding clause, at such prices as are necessary to move the 
merchandise into buyers' hands. However, all such stocks must 
first be reported to the Men's Clothing Code Authority. 

XI 

On and after the effective date, no contractor shall be permitted 
to contract for the manufacture of any garment or part thereof at 
a price below its cost as determined without any subterfuge in accord- 
ance with sound accounting practice, the cost to include a percentage 
on the contract price to cover general overhead. 

XII 

The following rules of fair trade practices are hereby established 
for the clothing industry : 

(a) The sale of garments on consignment is prohibited as an unfair 
method of competition. The term " consignment " as herein used 
shall include the delivery by a manufacturer to any distributor, as 
agent, purchaser, or otherwise, under any agreement or understand- 
ing, expressed or implied, pursuant to which the seller retains any 
lien upon or title to or interest in the goods delivered, or pursuant to 
which the distributor may at his option return any of the goods or 
claim any credits with respect thereto. This prohibition shall not 
apply to contracts entered into prior to July 14, 1933, the term of 
which expires wathin one year from the date of the enactment of the 
National Industrial Recovery Act. 

(b) A manufacturer or a contractor shall not make garments from 
fabrics, trimmings, and/or other materials owned or supplied by a 
retail distributor or the agent, representative, or corporate subsidiary 
or affiliate of .such retail distributor ; nor shall he manufacture gar- 
ments from fabrics, trimmings, and/or other materials, the purchase 
of which is made upon the credit of or the payment for which is 
guaranteed by such retail distributor or the agent, representative, or 
corporate subsidiary or affiliate of such retail distributor. This sec- 



235 

tion shall not prohibit the operations of retail distributors owning 
and operating their o-wn plants, shops, or factories who distribute 
products manufactured therein directly to consumers. 



XIII 






A board' known as The Men's Clothing Code Authority shall be 
established, and for the purpose of effecting membership therein 
representative of the entire industry, such Board shall be constituted 
as follows : 

Ten (10) members representative of members of The Clothing 
Manufacturers Association of the United States of America, and 

Five (5) members representative of employers in the Clothing 
Industry who are not members of The Clothing Manufacturers 
Association of the United States of America, shall be appointed by 
this Association. 

Two (2) members representative of other employers may be chosen 
by the foregoing members. 

Five (5) members representative of labor shall be appointed by 
the Administrator on nomination by the Labor Advisory Board. 

One (1) member may be appointed by the Administrator. 

Subject to the approval of the ^.Administrator, The Men's Clothing 
Code Authority shall have responsibility for the administration and 
the enforcement of the provisions of this Code, the standards of 
operation set forth therein, and all appropriate rules and regulations 
made pursuant thereto. 

In connection with such responsibility The Men's Clothing Code 
Authority shall have the following authorities and powers. 

(a) Authority and power to examine all books of accounts and 
records of employers in the Clothing Industry so far as practicable 
for the purpose of ascertaining their respective observance or non- 
observance of the provisions of this Code and the standards of 
operation set forth therein, 

(b) Authority and power to cooperate, so far as possible, with the 
Administrator in making investigations as to the functioning and 
observance of the provisions of this Code and the standards of 
operation set forth therein, at its own instance or on complaint by 
any person affected, and to report its findings to the Administrator. 

(c) Authority and power to investigate and inform the Adminis- 
trator, on behalf of the Clothing Industry, as to importation of com- 
petitive articles into the United States of America in substantial 
quantities or increasing ratio to domestic production, on such terms 
and under such conditions as to render ineffective or seriously to 
endanger the maintenance of this Code, and to make complaint, on 
behalf of the Clothing Industry, under the provisions of the National 
Industrial Recovery Act with respect thereto. 

(d) Authority and power to consider and to make recommenda- 
tions to the Administrator and to the President of the United States 
in respect of the following matters : 

(1) Recommendations as to the requirement by the Administrator 
of such other and further reports from persons engaged in the Cloth- 
ing Industry of statistical information and the keeping of uniform 
accounts as may be required to secure the proper observance of the 
Code and promote the proper balancing of production, distribution 



236 

and consumption, and the stabilization of the industry and 
employment. 

(2) Recommendations for the setting up of a Service Bureau for 
engineering, accounting, credit, or any other purposes that may 
aid in the conditions of this emergency and the requirements of this 
Code. 

(3) Recommendations for the making of rules by the Adminis- 
trator as to practices by persons engaged in the Clothing Industry as 
to methods and conditions of trading, the naming and reporting of 
prices which maj be appropriate to avoid discrimination, to promote 
the stabilization of the Industry, to prevent and eliminate unfair 
and destructive prices and practices. 

(4) Reconunendations for regulating the disposal of distress mer- 
chandise in a way that will secure the protection of the owners 
thereof and at the same time promote sound and stable conditions 
in the Industry. 

(5) Recommendations as to the making available to the suppliers 
of credit to those engaged in the Industry, all information regarding 
terms of and actual functioning of any or all of the provisions of the 
Code, the conditions of the Industry and regarding the operations of 
any and all persons engaged in the Industry and covered by this 
Code, to the end that during the period of the emergency, available 
credit may be adapted to the needs of the Clothing Industry, con- 
sidered as a whole, and to the needs of the small as well as of the large 
units. 

(6) Reconunendations for dealing with any inequalities that may 
otherwise arise that may endanger the stability of the Industry 
and/or production and employment. 

Such recommendations, when approved by the President of the 
United States, shall have the same force and effect as any other pro- 
vision of this Code. 

(e) Authority and power to appoint such oificers, agents, and 
other employees as may reasonably be required for the effective 
discharge of its functions. 

Except for the purposes provided in Section VIII of this Code 
and except so far as may be necessary or appropriate for the enforce- 
ment of the provisions of this Code and the standards of operation 
set forth therein, the data in respect of employers in the Clothing 
Industry reported to or secured by The Men's Clothing Code Author- 
ity shall be treated as confidential and shall not be published or 
otherwise disseminated throughout the Industry, except as indi- 
vidually undisclosed portions of aggregate compilations. 

None of the powers or authorities vested by this Code in the 
Men's Clothing Code Authority shall be utilized or availed of for any 
purpose other than the supervision and enforcement of the provisions 
of this Code or the standards of operation set forth therein, and for 
purposes of advice and information and recommendation substan- 
tially as provided for in this Code. 

None of the powers or authorities vested by this Code in The 
Men's Clothing Code Authority in respect of the operations of 
employers in the Clothing Industry shall be made effective in such 
manner as to preclude an appropriate review thereof by the 
Administrator. 



237 

The expense of maintainino; The Men's Clothing Code Authority 
shall be borne by emploj^ers in the Clothing Industry in such reason- 
able proportions and amounts and in such manner as may properl}'^ 
be allocated by the Administrator, upon the recommendation of The 
Men's Clothing Code Authority. 

XIV 

Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; no 
employee and no one seeking employment shall be required as a con- 
dition of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing; and employers shall comply with the maximum hours of 
labor, minimum rates of pa}^, and other conditions of employment, 
approved or prescribed by the President, 

XV 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
of Clause 10 (b) of the National Industrial Recovery Act, from time 
to time to cancel or modify any order, approval, license, rule, or 
regulation, issued under Title I of said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

XVI 

The Men's Clothing Code Authority shall designate the National 
Association of Uniform Manufacturers to aid the Administrator in 
the administration of this Code in respect of the manufacture and 
distribution of uniform apparel and shall make recommendations to 
the Administrator in respect of the trade practices desirable for this 
branch in the industry. 

XVII 

Such of the provisions of this Code are not required to be included 
therein by the National Industrial Recovery Act, may with the 
approval of the President, be modified or eliminated as changes in 
circumstances or experience may indicate. 



Approved Code No. 15. 
Registry No. 216-1-06. 



O 



Approved Code No. 16 
CODE OF FAIR COMPETITION 

FOR THE 

HOSIERY INDUSTRY 

As Approved on August 26, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance ^Yith the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933. for my approval of a Code 
of Fair Competition for the Hosiery Industry, and hearings having 
been held thereon and the Administrator having rendered his report 
containing an analysis of the said Code of Fair Competition together 
with his recommendations and findings with respect thereto, and the 
Administrator having found that the said Code of Fair Competition 
complies in all respects with the pertinent provisions of Title I of 
the said Act and that the requirements of clauses (1) and (2) of sub- 
section (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 
The White House, 

August 26, 1033. 

(239) 



29844 2&C-1?,- :J4 



August 25, 1933. 
The President, 

The White House. 
My Dear Mr. President : I have the honor to submit and recom- 
mend for your approval, the Code of Fair Competition for the 
Hosiery Industry. The Code has been approved by the Labor 
Advisory Board, the Consumers' Advisory Board and the Industrial 
Advisory Board. 

An Analysis of the provisions of the Code has been made by the 
Administration and a complete report is being transmitted to you. 
I find that the Code complies with the requirements of clauses 1 and 
2, subsection (a) of Section 3 of the National Industrial Recovery 
Act. 

Sincerely, 

Hugh S. Johnson, 

Administrator. 
(240) 



i, 



CODE OF FAIR COMPETITION 

FOR THE 

HOSIERY INDUSTRY 

Article I — Purpose 

To effectuate the policy of Title I of the National Industrial Ee- 
covery Act, the following provisions are submitted as a Code of Fair 
Competition for the Hosiery Industry, and upon acceptance by the 
President, shall be the standard of Fair Competition for this in- 
dustry. 

Article II — Definitions 

1. The term " Hosiery Industry ", as used herein, includes the 
manufacturing, finishing, repairing, selling, and/or distributing by 
manufacturers at wholesale or retail, or distributing by wholesalers 
and selling agents, of hosiery, and other related branches, as may 
from time to time be included under the provisions of this Code. 

2. The term " productive operations " is meant to embrace those 
operations in the plant which have to do with the manufacturing 
and packing of hosiery, to the point where it is ready for storage or 
shipment. 

3. The term "Association " shall be understood to mean the 
National Association of Hosiery Manufacturers. 

4. The term " person '^' shall include natural persons, partnerships, 
associations, and corporations. 

5. The term " Code Authority " shall refer to the Hosiery Code 
Authority as described in Article IX of this Code. 

6. The term " productive equipment " when used in this Code shall 
refer to knitting machines. 

7. The term " Sub-standard employee " shall mean one whose 
established capacity to produce is substantially below the minimum 
acceptable performance for the class of work he is doing. 

Article III — Date Code Goes Into Effect 

This Code shall go into effect the second Monday following the 
date on which it shall be approved by the President. 

Article IV — Hours of Work 

1. On and after the date on which this Code goes into effect, no 
person in the Hosiery Industry shall employ any employee in pro- 
ductive operations on a schedule of hours of labor which shall exceed 
forty (40) hours per week. 

2. It is understood that the above limitation on hours of work shall 
not apply to office employees, supervisors, foremen, engineers, fire- 
men, electricians, repairshop men, dyers, shipping force, watchmen, 

(241) 



242 

cleaners, outside workers, sales force, and those engaged in emergency 
maintenance or repair work. 

3. On and after September 4, 1933, the maximum number of hours 
for office employees in the Hosiery Industry shall not exceed an 
average of forty (40) hours per week over each period of six months. 

4. On or before January 1, 1934, the Code Authority shall prepare 
and submit to the Administrator suggestions for a schedule of maxi- 
mum hours and minimum wages to apply to those employees ex- 
cepted under Section 2 of this Article. 

5. It is interpreted that the provisions for maximum hours estab- 
lish a maximum of hours of labor per week for every employee cov- 
ered, so that under no circumstances will such an employee be em- 
ployed or permitted to work for one or more employers in the Indus- 
try in the aggregate in excess of the prescribed number of hours in 
a single week. 

6. The productive operations of a plant shall not exceed two shifts 
of forty (40) hours each per week. The work week for productive 
operations, except dyeing, shall not exceed five (5) days of eight (8) 
hours each. These days shall be Monday to Friday, inclusive, ex- 
cept in those states where the state laws operate to prevent the opera- 
tion of two forty (40) hour shifts within the mentioned five (5) 
days. In such states, the employer may operate one shift on Satur- 
day, not to exceed four (4) hours, it being definitely understood that 
his total machine hours shall not exceed eighty (80) hours per week. 

7. For a period of six (6) months following the date on which 
this Code goes into eifect, full-fashioned hosiery plants whose foot- 
ing equipment on July 24, 1933, was being operated on a two-shift 
basis may continue to operate such equipment on a two-shift basis, 
but the length of each of these shifts shall not exceed thirty-five (35) 
hours per week. The rates paid to knitters, knitting-helpers, and 
toppers working on these thirty-five (35) hour shifts, shall be such 
as to provide them earnings equal to those which they would receive 
if working on fort}'^ (40) hour shifts. Full-fashioned hosiery mills 
whose footing equipment on July 24, 1933, was being operated on a 
one-shift basis shall not, during said six (6) months, operate such 
equipment more than one shift of forty (40) hours per week. Not 
later than thirty (30) days before the expiration of the mentioned 
six (6) months, the Code Authority shall submit, for the Adminis- 
trator's approval, a recommendation for determining a more per- 
manent policy respecting footer operation designed to effect a rea- 
sonable balance between production and demand. 

8. Manufacturers of woolen hosiery may operate their knitting 
equipment not to exceed three (3) shifts of forty (40) hours each 
until December 31, 1933, after which time their knitting operations 
shall be limited to two (2) shifts of forty (40) hours each. This 
exception applies only to the manufacture of hosiery which contains 
at least twenty percent (20%) of wool. 

Article V — Wages 

On and after the date on which this Code becomes effective, the 
minimum wage, on the basis of forty (40) hours' labor per week, to 
be paid by all employers in the Hosiery Industry shall be at the 
following rates : 



243 



1. FULL-FASHIONED MANUFACTURE 



Classification of workers 



Class 1: Leggers, footers: 

36 gauge and below 

39 gauge 

42 gauge 

45 gauge 

48 gauge 

51 gauge and above 

Class 2: Boarders 

Class 3: Toppers, loopers, seamers, skein winders, menders, pairers, finished in- 
spectors, helpers on knitting (over six months' training), pairer-folders 

Class 4: Stampers, boxers, gray examiners, folders, cone-winders, other produc- 
tive workers, learners (including machine helpers), for the second 3 months of 

their training 

Class 5: Learners (including machine helpers), for the first 3 months of their 
training 



Minimum weekly rate 



North 



$18. 50 
20.00 
21.50 
23.50 
25.50 
27.50 
17.00 

15.00 



13.00 
8.00 



South 



$16. 75 
18.00 
19.50 
21.25 
23.00 
24.75 
15.50 

13.50 



12.00 
8.00 



2. SEAMLESS MANUFACTURE 



Classification of workers 



Minimum weekly rate 



Class 1: Machine fixers 

Class 2: Knitters (above 240 needle), loopers (above 240 needle), boarders 

Class 3: Knitters (240 needle and below), loopers (240 needle and below), seamers, 
toppers, menders, pairers, welters, trimmers, stampers, folders, boxers, inspec- 
tors, winders, knitters (ribbed top), shipping help, machine fixer helpers, other 

productive workers 

Class 4: Learners (first 3 months' training) 




12.00 
00 



3. It is interpreted that the provisions for a minimum wage in this 
Code establish a guaranteed minimum rate of pay per hour of em- 
ployment regardless of whether the employee's compensation is based 
on a time rate or upon a piecework performance. This is to avoid 
frustration of the purpose of the Code by changing from hour to 
piecework rules. 

4. The territory constituting " South " embraces the States of Ala- 
bama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, 
Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, 
Texas, Virginia, and West Virginia. 

5. The learner's first three (3) months' training provided for under 
Class 5 of Section 1 and Class 4 of Section 2 of this article is the 
aggregate of his or her first three (3) months' training within the 
industry, whether continuous or not, and whether employed by or 
permitted to work for one or more employers. 

6. The practice or requiring or permitting a knitter to pay part or 
all of the wages of a knitter-helper is prohibited. The full wages 
of all employees shall be paid by the employer. 

7. The amount of production of work required of any employee 
shall not be increased over that required for the same class of work 
prior to July 15, 1933, for the purpose of avoiding the benefits to 
employees prescribed by this Code with respect to wages and hours of 
employment. 

8. The minimum wages of substandard employees shall not be 
more than twenty percent (20%) below those of regular employees 



244 

in the same class of work. The total number of substandard em- 
ployees shall not at any time exceed five percent (5%) of all the 
productive employees of the plant. They shall be registered with 
the Code Authority in such manner as it may specify. 

9. On and after the date on which the Code goes into effect, the 
minimum wages paid by employers in the Hosiei-y Industry to all 
employees not specified in Sections 1 and 2 of this Article, except 
cleaners, outside workers and substandard workers, shall be at the 
rate of twelve dollars ($12.00) per week in the South and at the 
rate of thirteen dollars ($13.00) in the North for forty (40) hours 
of labor. 

Article VI — Conditions of Work 

1. All productive operations shall be carried on on the premises 
of a plant, this being understood to specifically prohibit the farming 
out of work to be done in private homes or elsewhere than in a 
plant. Exceptions, in the cases of individual workers, may be 
granted where the proofs show that the worker can only work at 
home, and requires such work as a means of livelihood. Permits for 
exceptions shall be jirocurable from the Code Authority which will 
prescribe the manner and conditions under which they shall be 
considered. 

2. On and after the date on which this Code shall be in effect, no 
person in the Hosiery Industry shall employ any minor under the 
age of sixteen (16) years. 

3. (a) All full fashioned footing machines shall be operated on a 
single-machine basis, i.e., one knitter, or one knitter and one knit- 
ting-helper, to one machine. 

(b) Under no condition is a knitter to operate more than two full 
fashioned legging machines. When operating two such legging ma- 
chines, he shall be assisted by two knitting-helpers. 

(c) The Code Authority shall collect information on the extent 
of double-machine full fashioned legging operations as of July 15th 
and as of September 15th, and make such recommendations to the 
Administrator as it may see fit. Pending such recommendations, 
full fashioned legging machines operating on a single-machine basis 
shall continue on such basis. 

Article VII — Reports and Data ^ 

For the purpose of judging the observance of the Code, of gauging 
the extent to which the objectives of the National Industrial Re- 
covery Act are being attained, and of being able to intelligently make 
any necessary amendments or additions to the Code, each person 
engaged in the manufacture of hosiery shall furnish the National 
Association of Hosiery Manufacturers properly certified reports of 
such character and in such form as the Association may prescribe. 
Among such reports to be required are the following : 

1. Advance basic report, covering recent shipment or production 
figures in the terms of styles commonly accepted in the trade, hours 
of work, plant operation hours, wages and equipment, etc. 

2. Weekly shipment report. 



1 



245 

3. Monthly froduction^ production and selling costs, shipments, 
stocks on hand, change in equipment, wages and hours of labor 
report. 

Article VIII — Fair Trade Practice 

To assure fair competition in the Industry and proper practices 
in the merchandising of hosiery, the following fair trade practice 
provisions are made a part of the Code and binding on all hosiery 
manufacturers : 

1. Contracts. — (a) Written orders, as well as oral orders based on 
practice established between the buyer and the seller concerned, shall 
be performed on the terms specified. 

(b) The practice of permitting the listing of a style by a customer 
without a definite quantity contract is unfair trade practice. 

(c) The Association shall develop uniform conditions of sale for 
the use of the industry, 

2. Price guarantees. — To guarantee prices against decline is an 
unfair trade practice. 

3. Bonuses, rebates, discounts, et cetera. — To allow commissions 
bonuses, rebates, refunds, credits, unearned discounts, or subsidies of 
any kind, to a purchaser, whether in the form of money, services, 
payment of any part of the wages of a customer's employee, adver- 
tising or otherwise, or the return of merchandise except for mill 
imperfections, or giving of premiums, when not extended to all 
purchasers under like terms and conditions, is an unfair trade prac- 
tice. 

Hosiery manufacturers selling merchandise under their own 
brands shall have the right to enter arrangements for cooperative 
advertising of such brands. Such manufacturers may also offer 
exchange merchandise services, returns for credit excepted, provided 
that such practices are part of their regular and customary mer- 
chandising- methods, and provided that these privileges are open to 
all customers of such manufacturers. The manufacturer's share of 
cooperative advertising referred to above shall not exceed fifty (50) 
percent of the amount actually spent. 

4. Selling below cost, et cetera. — (a) The selling of merchandise 
below cost, except as provided under subsection C of this section 
and section 8 of this article, is unfair trade practice. 

(b) The billing of customers' sample requirements at less than 
regular stock prices is unfair trade practice. 

(c) All closeouts of discontinued styles and/or sizes and/or broken 
assortments, if sold below cost, shall be stamped " Discontinued " on 
each hose with an indelible transfer ordered only through the 
Association. 

(d) Each manufacturer in the Industry shall determine costs in 
a manner approved by the Code Authority. 

5. Shipments on consignment. — To shii> hosiery on consignment 
or on memorandum is unfair trade practice. 

6. Gommiercial bribery. — The giving of gratuities or bribes, for 
the purpose of obtaining commercial advantages or preference, 
whether in the form of money, goods, or privileges, is unfair trade 
practice. 



246 

7. Return of 77ierchandise for reftnishmg^. — To allow a customer to 
return merchandise for refinishing or redyeing without charging 
actual costs therefor is unfair trade practice. 

8. Sale of inercliandise other than prst quality.— ^{a) The sale of 
irregulars or seconds in the packing of firsts, with the intent or effect 
of deceiving the purchaser or the ultimate consumer, is unfair trade 
practice. 

(b) All full-fashioned hosiery, and all seamless hosiery other than 
bundle goods, which is not first quality, shall be stamped or trans- 
ferred either " Irregulars " or " Seconds " on the toe or sole of each 
hose, except that goods of a lower classification commonly known 
as thirds must be stamped or transferred " Thirds." 

(c) All stamping of this nature must be indelible. The words 
" Irregulars ", " Seconds ", or " Thirds ", must be in full-face type 
letters of not less than three sixteenths of an inch in height. 

9. Sale of inill runs. — To sell hosiery commonl}^ known as " Mill 
Runs " containing hose which according to proper inspection as gen- 
erally practiced by the industry- would be classified as " Irregulars " 
or " Seconds ", with the intent or effect of deceiving the ultimate 
consumer, is unfair trade practice. 

10. Substitution. — To ship or deliver hosiery which does not con- 
form in quality and value to the samples submitted or representa- 
tions made prior to securing the order, without the knowledge or 
consent of the purchaser to such substitutions, is unfair trade 
practice. 

11. Misbranding and improper marking. — To sell hosiery marked 
or branded falsely with the effect of misleading or deceiving pur- 
4iasers or the ultimate consumer with respect to price, quantity, 
quality, gauge, grade, substance, or value of the merchandise is 
unfair trade practice. 

12. Misrepresentation of nmteHals. — (a) If any definite section or 
sections of the hose be made of a material entirely different from that 
of the bulk or body of the stocking, when such material gives the 
appearance of silk, the hose must be stamped with the names of both 
materials. 

(b) No material or content shall be stamped on any hose unless it 
represents at least five percent (5%) of the hose by weight. When 
two or more contents exist, if any content is stamped on the hose, all 
contents constituting five percent (5%) or more of the weight of 
the hose shall be stamped and in the order of major content. 

13. Imitation of competitor''s marks. — The imitation of the trade 
marks, trade names, slogans, or other marks of identification of 
competitors, having the tendency to mislead or deceive the ultimate 
consumer, is an unfair trade practice. 

14. Observance of Code. The failure to observe any rule in this 
Article of the Code, even if it does not contain the words " unfair 
trade practices ", is a violation of the Code. 

15. Arbitration. — All disputes pertaining to the interpretation of 
the Fair Trade provisions described in this Article of the Code shall 
be submitted to such forms of arbitration as may be set up by the 
Association. 



247 

Article IX — Coordination and Administration 

1. A Hosiery Code Authority shall be established for the purpose 
of administering this Code and for all other purposes hereinafter 
set forth. The Code Authority shall be constituted as follows : 

(a) Eight (8) members, representative of employers, shall be 
api^ointed by the Board of Directors of the Association. 

(b) Two (2) members, representative of labor, shall be appointed 
b}^ the Administrator, on nomination of the Labor Advisory Board. 

(c) Two (2) members shall be appointed by the Administrator. 

2. For the purpose of assuring to the Code Authority the advice 
and suggestions of the major branches of the Industry, the Associa- 
tion shall provide for the selection in each major branch of the In- 
dustry of an Advisory Committee. Such Advisory Committee shall 
make such recommendations to the Code Authority as they may deem 
necessary and advisable with reference to their particular branch 
of the Industry. They may also submit recommendations affecting 
the whole Industry. Such recommendations, when approved by the 
Code Authority, and by the Administrator, shall become a part of 
this Code and shall have full force and effect as provisions thereof. 

3. It shall be the duty of the Code Authority to : 

(a) Issue and distribute to all persons in the Industry, from time 
to time, such posters or notices as, in its judgment, shall be displayed 
in the plants of the Industry for the purpose of bringing to the at- 
tention of all employees, provisions of the Code which affect them, 
and interpretations thereof by the Code Authority. The Code Au- 
thority may specify the manner in which such notices or posters shall 
be displayed. Failure to comply with such instructions shall be 
an infraction of the Code. 

(b) Review all questions or disputes arising under this Code. It 
shall have the power, subject to the approval of the Administrator, 
to dispose of such issues directly or by such means or media as it 
may designate or set up for the purpose. 

(c) Report to the Administrator all violations or infractions of 
the Code which have been submitted to it in writing. The Code 
Authority may submit with such reports its recommendations as to 
appropriate action thereon. 

(d) Investigate the importation of competitive articles into the 
United States on such terms or under such conditions as to render 
ineffective or seriously endanger the maintenance of this Code, and 
act as the agency for making complaint to the President on behalf 
of the Hosiery Industry. 

(e) Submit to the Administrator from time to time such recom- 
mendations as, in its judgment, will have the effect of improving 
the Code, or of improving the results secured thereunder, any of 
which recommendations, when approved by the Administrator, shall 
have force and effect as provisions of this Code. Every recom- 
mendation shall be made only after a proper canvass of the opinion 
of the Industry. In submitting aii}^ recommendation to the Admin- 
istrator, the aggregate number of mills as well as the aggregate 
productive capacity, favoring or opposing the recommendation, shall 
be indicated. Such recommendations shall, among others, be of 
the following character : 



248 

(1) Recommendations for changes in those provisions of the Code 
which relate to hours of work, plant hours, minimum wages and 
working conditions, as may seem desirable in the light of experience 
under the Code. 

(2) Recommendations for changes and additions in those provi- 
sions of the Code which relate to fair trade practices. 

(3) Recommendations (a) for the requirement by the Adminis- 
trator of registration by persons engaged in the Hosiery Industry 
of their productive equipment, (b) for the requirement by the Ad- 
ministrator that prior to the installation of additional productive 
equipment (except for the replacement of existing equipment of 
equal capacity or to establish balance in existing equipment) by 
persons engaged or engaging in the Hosiery Industry, such persons 
shall secure certificates that such installation will be in accord with 
the objectives of the Act. 

(4) Recommendations for the acquisition and disposal of surplus 
used equipment, or the scrapping of fully depreciated obsolete equip- 
ment, and as an aid to maintaining proper balance between produc- 
tive capacity and expectable demand. 

(5) Recommendations as to requirements by the Administrator 
of uniform methods of cost accounting to assure against unfair com- 
petition and a demoralization of the market through selling below 
cost (other than distress merchandise), and otherwise to assure 
compliance with the provisions of the Code. 

4. The cost of the administration needed to secure proper observ- 
ance of this Code and any additions thereto, the compilation of 
statistical data, and such other activities as may be necessary shall 
be apportioned pro rata, so far as is practicable, to all persons in the 
Industry whether or not they are members of the National Associa- 
tion of Hosiery Manufacturers. 

Article X — Adjustment of Prior Contracts 

Where the costs of executing contracts entered into in the Industry 
prior to June 16, 1933, are increased by the application of the provi- 
sions of this Code to the Industry, it is equitable and promotive of 
the purposes of this Code that appropriate adjustments of such 
contracts to reflect such increased costs be arrived at. Further, if 
the fulfillment of orders is delayed or prolonged as the result of 
the operations of this Code, appropriate additional time shall be 
allowed for the completion of such orders. The Association is 
constituted an agency to assist in effecting such adjustments. 

Article XI — Rights of Employees 

National Industrial Recovery Act, Section 7, subsection a, 
"(1) Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; (2) No 
employee and no one seeking employment shall be required as a 



249 

condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing; and (3) Employers shall comply with the maximum 
hours of labor, minimum rates of pay, and other conditions of 
employment, approved or prescribed by the President." 

Article XII — Monopoly and Discrimination 

No provision of this Code shall be interpreted or applied in any 
manner which shall — 

1. Promote monopolies. 

2. Permit or encourage unfair competition. 

3. Eliminate, oppress, or discriminate against small enterprises. 

Article XIII — Amendments and Additions to Code 

1. This Code takes into consideration the provisions of Section 10, 
Subsection b, of the National Industrial Recovery Act, by which 
" The President may from time to time cancel or modify any order, 
approval, license, rule, or regulation issued under this title ; and each 
agreement, code of fair competition, or license approved, prescribed, 
or issued under this title shall contain an express provision to that 
effect." . _ 

2. It is anticipated that experience under the Code will suggest or 
demand modifications of or additions thereto, to better accomplish 
the objectives sought by the National Industrial Recovery Act. Any 
proposed changes or addition will be submitted for the approval of 
the President. 

Approved Code No. 16. 
Registry No. 241/02. 

o 



Approved Code No. 17 
CODE OF FAIR COMPETITION 

FOR THE 

AUTOMOBILE MANUFACTURING INDUSTRY 

As Approved on August 26, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Automobile Manufacturing Industry, and 
hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said Code of Fair 
Competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of Section 3 of the said Act have been 
met: 

Now, therefore, I, Franklin D. Roosevelt, President of the United 
States, pursuant to the authority vested in me by Title I of the 
National Industrial Recovery Act, approved June 16, 1933, and other- 
wise, do adopt and approve the report, recommendations and find- 
ings of the Administrator and do order that the said Code of Fair 
Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White House, 

August 26, 1933. 

29854 206-138 34 (251) 



August 25, 1933. 
The President. 

The White House. 

My Dear Mr. President : I have the honor to submit and recom- 
mend for your approval, the Code of Fair Competition for the Auto- 
mobile Manufacturing Industry. The code has been approved by 
the Industrial Advisory Board, the Labor Advisory Board, and the 
Consumers' Advisory Board. 

An analysis of the provisions of the code has been made by the 
Administration and a complete report is being transmitted to you. 

1 find that the code complies with the requirements of clauses 1 and 

2 subsection (a) of section 3 of the National Industrial Recovery Act. 
I am. my dear Mr. President, 

Very sincerely yours, 

Hugh S. Johnson, 

A dministrator. 
(252) 



CODE OF FAIR COMPETITION 

FOR THE 

AUTOMOBILE MANUFACTURING INDUSTRY 



The following provisions are established as a code of fair compe- 
tition for the Automobile Manufacturing Industry : 

I — Definitions 

The term '' motor vehicles " as used herein means automobiles, 
including passenger cars, trucks, truck tractors, busses, taxicabs, 
hearses, ambulances, and other commercial vehicles, for use on the 
highway, excluding motorcycles, fire apparatus, and tractors other 
than truck tractors. 

The term " Industiy " as used herein includes the manufacturing 
and assembling within the United States of motor vehicles and bodies 
therefor, and of component and repair parts and accessories by manu- 
facturers or assemblers of motor vehicles. 

The term " employees " as used herein means all persons employed 
in the conduct of such operations. 

The term " employers " as used herein means all individuals, part- 
nerships, associations, trusts, and corporations in the Industry by 
whom such employees are employed. 

The term " Chamber " as used herein means National Automobile 
Chamber of Commerce, a trade association having its office at No. 
366 Madison Avenue, New York City. 

The term " effective date " as used herein means the tenth day 
after this code shall haA^e been approved by the President of the 
United States. 

The term " expiration date " as used herein means December 31, 
1933, or the earliest date prior thereto on which the President shall by 
proclamation or the Congress shall by Joint Kesolution declare that 
the emergency recognized by Section 1 of the National Industrial 
Recovery Act has ended. 

The term " city " as used herein includes the immediate trade area 
of such city (which in the case of Detroit shall be deemed to include 
Pontiac and Flint). 

II — AVages 

On and after the effective date, and to and until the expiration 
date: 

The minimum wages of factory employees covered hereby shall be 
at the following hourly rates regardless of whether the employee is 
compensated on the basis of time rate or piece rate or otherwise: 

Cent^ 

in cities having 500,000 population or over . 43 

in cities having 250,000 and loss than 500,000 population 41 V2 

in cities or towns having less than 250,000 population 40 

(253) 



254 

Provided, however, that apprentices and learners and females not 
doing the same work as adult males shall be paid not less than 87% 
percent of said minimums, but the number of such apprentices and 
learners and females not doing the same work as adult males em- 
ployed by any employer shall not exceed 5 percent of the total number 
of factory employees of such employer including subsidiary and 
affiliated companies. 

Equitable adjustment in all pay schedules of factory employees 
above the minimums shall be made on or before September 15, 1933, 
by any employers who have not heretofore made such adjustments, 
and the first monthly reports of wages required to be filed under this 
code shall contain all wage increases made since May 1, 1933. 

The minimum wages of office and salaried employees covered here- 
by shall not be less than the following weekly rates : 

in cities having 500,000 population or over, at tlie rate of $15 per week. 

in cities having 250,000 and less than 500,000 population, at the rate of 

$14.50 per week. 
in cities or towns having less than 250,000 population, at the rate of 

$14 per week. 

Ill — Hours 

There are substantial fluctuations in the rate of factory production 
throughout each year, due mainly to the concentration of a large part 
of the annual demand for cars within a few months, and also to the 
slowing down of employment in connection with changes in models 
and other causes beyond the industry's control. 

To lessen the effect on employment of these conditions, it has been 
the policy of the industry to adjust working hours, in order to retain 
the greatest number of employees and so far as practicable adjust 
the manufacturing schedules of component parts to allow a more 
uniform schedule of hours. The industry will continue this policy. 

The progressive falling off of retail sales during the years of de- 
pression, resulting in the necessity of repeated adjustments downward 
in production schedules, had its important influence in causing an 
abnormal fluctuation in employment schedules. 

Before the presentation of this code the industry had gone far in 
spreading available work to relieve unemplojnnent, and under this 
code it proposes to spread the work as far as practicable in its judg- 
ment, consistent with the policy of giving each employee a reasonable 
amount of work in each year. 

For this piu-pose it is made a provision of this code that employers 
shall so operate their plants that the average employment of all 
factory employees (with exceptions stated below) shall not exceed 
thirty-five hours per week for the period from the effective date to 
the expiration date, and the hours of each individual employee shall 
so far as practicable conform with this average and shall in no case 
exceed the same by more than three percent. 

In order to give to emploj^ees such average of thirty-five hours 
per week, it will be necessary at times to operate for substantially 
longer hours, but no employee shall be employed for more than six 
days or 48 hours in anj^ one week, and all such peaks shall be absorbed 
in such average. 

In order that production and employment for the main body of 
employees may be maintained with as few interruptions as possible, 



255 

it is necessary, and it is a part of this code, that the supervisory 
staff and employees engaged in the preparation, care, and mainte- 
nance of plant machinery and facilities of and for production, shall 
be exempt from the weekly limitations above provided, but the hours 
of emploj^ment of any such exempted employee engaged in the 
preparation, care, and maintenance of factories and machinery of 
and for production shall not exceed 42 hours per week averaged on 
an annual basis. 

Office and other salaried employees, covered hereby, receiving less 
than $35 per week shall not work more than 48 hours in any one 
week and not more than an average of 40 hours per week for the 
period from the effective date to the expiration date. Employees 
receiving more than $35 per week and executives and managerial 
and supervisory staffs are not subject to any hourly limitations. 

The industry recognizes the serious problem of major fluctuations 
in production due to concentrated seasonal customer demand and 
changes in the rate of production caused by changes in models, 
which changes are necessary. The Chamber pledges itself to make a 
further study of this problem in an effort to develop any further 
practical measures which can be taken to provide more stable and 
continuous employment and to reduce to a minimum the portion of 
employees temporarily employed and to submit a report thereon to 
the Administrator by December 1, 1933. 

IV — Child Labor 

Employers in the industry shall not employ any person under the 
age of 16 3^ears. The Chamber states that child labor has at no time 
ever been a factor in the Automobile Industry. 

V — Reports and Statistics 

Each emploj^er engaged in the industry will furnish to the 
Chamber as hereinbelow provided, approximately every four weeks, 
duly certified reports in such form as may hereafter be provided 
showing actual hours worked by the various occupational groups 
of emploj^ees and wages paid, 

VI — Administration 

For the purpose of supplying the President and the Administrator 
with requisite data as to the observance and effectiveness of this code 
and the administration thereof, the Chamber is hereby designated — 

(a) To collect from the members of the industry all data and sta- 
tistics called for by this code, or required by the President, or rea- 
sonably pertinent to the effectuation of title I of the National 
Industrial Recovery Act, and compile the sam?, and disseminate 
among the members of the industry summaries thereof, all in such 
form and manner as the Chamber shall reasonably prescribe subject 
to approval by the Administrator. 

(b) To represent the industry in conference with the Administra- 
tor with respect to the application of this code and of said act and 
any regulations issued thereunder; provided, however, that as re- 
gards all matters mentioned in this paragraph (b), the Chamber 



256 

shall have no power to bind the industry or any subdivision thereof. 
The President or the Administrator may designate a representative 
to participate in such conferences, who shall have access to all data 
and statistics collected by the Chamber as above provided. The 
Chamber or its authorized committee or agent shall hold itself in 
readiness to assist and keep the Administrator fully advised, and to 
meet with the Administrator's representative from time to time as 
requested to consider and study any suggestions or proposals pre- 
sented upon behalf of the Administrator or anj^ member of the 
industry regarding the operation, observance, or administration of 
this code. 

(c) The duties of the Chamber above referred to shall be exercised 
by the Chamber by its Board of Directors, which may delegate any 
of said duties to such agents and committees as it may appoint whose 
personnel, duties, and powers may be changed. 

VII 

Employers in this industry shall comply with the following re- 
quirements of section 7 (a) of title I of the Xational Industrial 
[Recovery Act. 

Employees shall have the right to organize and bargain collectively 
through representatives of their own choosing, and shall be free from 
the interference, restraint, or coercion of employers of labor, or their 
agents, in the designation of such representatives or in self -organiza- 
tion or in other concerted activities for the purpose of collective 
bargaining or other mutual aid or protection; (2) no employee and 
no one seeking employment shall be required as a condition of em- 
plojnnent to join any company union or to refrain from joining, 
organizing, or assisting a labor organization of his own choosing; 
and (3) employers shall comply with the maximum hours of labor, 
minimum rates of pay. and other conditions of employment, approved 
or prescribed by the President. 

Without in any way attempting to qualify or modify, by inter- 
pretation, the foregoing requirements of the Xational Industrial 
Recovery Act, employers in this industry ma}^ exercise their right 
to select, retain, or advance employees on the basis of individual 
merit, without regard to their membership or nonmembership in any 
organization. 

VIII 

As required b}^ section 10 (b) of title I of the Xational Industrial 
Recovery Act, the following provision is contained in this code : 
The President may from time to time cancel or modify any order, 
approval, license, rule, or regulation issued under said Title. 

IX 

B}^ presenting this code, the Chamber and others assenting hereto 
do not thereby consent to any modification thereof and they reserve 
the right to object individually or jointly to any such modifications. 



257 

X 

Such provisions of this code as are not required to be included 
therein W the National Industrial Recovery Act may, upon the 
application of the industry or a subdivision thereof and with the 
approval of the President, be modified or eliminated. It is con- 
templated that from time to time supplementary provisions to this 
code or additional codes may be submitted in behalf of the industry 
or various subdivisions thereof for the approval of the President. 



Approved Code No. 17. 
Reiristry No. 1403-1-04. 



o 



Approved Code No. 18 
CODE OF FAIR COMPETITION 

FOR THE 

CAST IRON SOIL PIPE INDUSTRY 

As Approved on September 7, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Cast Iron Soil Pipe Industry, and hear- 
ings having been held thereon and the Administrator having rendered 
his report containing an analysis of the said Code of Fair Competi- 
tion together with his recommendations and findings with respect 
thereto, and the Administrator having found that the said Code of 
Fair Competition complies in all respects with the pertinent provi- 
sions of Title I of said Act and that the requirements of clauses (1) 
and (2) of subsection (a) of Section 3 of the said Act have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do approve the report and recommendations and 
:-adopt the findings of the Administrator and do order that the said 
Code of Fair Competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dniinisti'ator. 

The White House, 

Septemher 7, 1933. 

29912 296-000 34 (259) 



National Recovery Administration, 

Washington, D.G., Septemher 7, 1933. 
The President, 

The White House. 
My dear Mr. President: I have the honor to submit and recom- 
mend for your approval the Code of Fair Competition for the Cast 
Iron Soil Pipe Industry. The Code has been approved by the- 
Labor Advisory Board, the Consumers Advisory Board, the Indus- 
trial Advisory Board, and the Legal Division. 

An analysis of the provisions of the Code has been made by the 
Administration and a complete report is being transmitted to you. 
I find that the Code complies with the requirements of clauses 1 
and 2, subsection (a) of Section 3 of the National Industrial Recovery- 
Act. 

Very sincerely yours, 

Hugh S. Johnson, Administrator. 
(260) 



CODE OF FAIR COMPETITION 

FOR THE 

CAST IRON SOIL PIPE INDUSTRY 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, during the period of emergency, by reducing and 
relieving unemployment, improving standards of labor, eliminating 
competitive practices destructive to the interests of the public ; 
rehabilitating the Cast Iron Soil Pipe Industry, and by increasing 
the consumption of industrial and agricultural production by in- 
creasing purchasing power, and in other respects, the following pro- 
visions are established as a Code of Fair Competition for the Cast 
Iron Soil Pipe Industry: 

1. (a) The term " association '' as used herein means the Cast Iron 
Soil Pipe Association. 

(b) The term " cast-iron soil pipe " as used herein means pipe used 
for carrying soil and liquid waste matter from plumbing fixtures 
of buildings into the main sewer system, also for ventilating purposes 
in connection with plumbing systems within buildings, and for 
carrying other liquids where not under pressure. It is manufactured 
in lengths of five (5) feet only, and in diameter ranging from 
2 inches to 15 inches, with a wall thickness of % inch to Ye inch. 
Soil pipe is manufactured from pig iron and scrap iron by casting 
horizontally in green sand molds and green sand cores — by the hand- 
ramming stripping-plate methods. Its process .of manufacture and 
use is not comparable with cast-iron pressure pipe, which is manu- 
factured in lengths of six (6) to eighteen (18) feet by the "pit 
cast " and " centrifugal " methods, and ranges in diameter from two 
(2) to ninety-six (96) inches, and is used for carrying liquids and 
gas under pressure. 

(c) The terms " fittings and plumbers' cast-iron specialties " as 
used herein means cast-iron soil-pipe fittings and cast-iron service, 
valve, roadway and meter boxes, and other cast-iron specialties used 
in connection with plumbing systems within and outside of build- 
ings, but not including plumbing fixtures and valves. 

(d) For the purpose of this Code the wholesaler of plumbing 
supplies is defined but without limitation as an individual, partner- 
ship, corporation, or other entity, who has a substantial investment 
in his business, who buys in bulk quantities, maintains a warehouse, 
and a sufficiently complete stock of plumbing supplies to meet all 
normal requirements, whose major business is selling to contractors, 
retailers, or others who purchase for reselling and who maintain 
complete office, sales, and delivery service, and who does not per- 
form directly or indirectly the functions of a contractor. 

(261) 



262 

(e) For the purpose of this Code a plumber is defined as one- 
who repairs or installs plumbing equipment of every character, wha- 
purchases plumbing supplies for installation or for resale as personal 
property. 

(f) For the purpose of this Code a " Direct-to-you " or "Mail 
Order House " is defined as an individual, partnership, corporation, , 
or other entity who has a substantial investment in his business, 
who buys in bulk quantities, who maintains a warehouse and a suffi- 
ciently complete stock of plumbing fixtures to meet all normal re- 
quirements, whose major business is selling to the consumer. 

(g) Wherever the word " industry " appears in this Code it means 
the Cast Iron Soil Pipe Industry. 

2. This Code shall be in effect commencing the first Monday fol- 
lowing its approval by the President. 

3. (a) On and after the effective date, the minimum wages that 
shall be paid by employers in the Cast Iron Soil Pipe Industry to 
any of their employees, except learners during a three months' ap- 
prenticeship, shall be at the rate of thirty-two (32) cents per hour 
for common labor when employed in the South and at the rate of 
forty (40) cents per hour for common labor when employed in the 
Eastern, Western, and Pacific Coast sections of the United States. 

(b) For the purpose of this Code the South comprises the terri- 
tory South of the Ohio and Potomac Rivers and East of the Mis- 
sissippi River. 

(c) For the purpose of the Code the Eastern, Western, and Pacific 
Coast sections comprise the balance of the United States. 

4. (a) On and after the effective date twenty-seven (27) hours 
will be the maximum hours of labor per week, except as hereinbelow 
provided. 

(b) The maximum hours for clerks, bookkeepers, and stenog- 
raphers shall be forty hours per week, not exceeding eight hours in 
any one day. 

(c) Executive officers and their supervisory staffs are excluded 
from any of the provisions relating to maximum hours, as provided 
in this Section 4. 

5. On and after the effective date employers in the Cast Iron Soil 
Pipe Industry shall not employ any minor under the age of sixteen 
years, provided that no person under the age of eighteen 5^ears shall" 
be employed in any foundry operation that might be termed hazard- 
ous, and provided further that where a State law specifies a higher 
minimum age no person below the age so specified shall be employed' 
within that State. 

6. On and after the effective date members of the Cast Iron Soil 
Pipe Industry shall not operate productive equipment in said indus- 
try for more than twenty-seven hours per week or a schedule of hours 
greater than is provided in the Code for Labor. 

7. With a view to keeping the President of the United States and " 
the Administrator informed as to the observance or nonobservance 
of this Code of Fair Competition, and as to whether the Cast Iron 
Soil Pipe Industry is taking appropriate steps to effectuate the 
declared policy of the National Industrial Recovery Act, every 
person engaged in the Cast Iron Soil Pipe Industry will furnish. 



263 

duly certified reports in substance as follows, and in such form as 
may hereinafter be provided : 

(a) Monthly report of the number of people employed, show- 
ing increase or decrease, the number of man hours worked per day, 
classification and rates of pay, together with any changes occurring 
during the month. 

(b) Monthly report of production of cast-iron soil pipe and 
fittings and plumbers' cast-iron specialties. 

(c) Monthly report of shipments of cast-iron soil pipe and fittings 
and plumbers' cast-iron specialties- 

(d) Monthly report of total inventory of finished goods. 

(e) Monthly report of unfilled orders. 

(f ) Monthly report of delinquent accounts. 

The Cast-Iron Soil Pipe Association, or successor associations, the 
applicant herein, is hereby constituted the agency to collect and 
receive such reports. It is understood, however, that the individual 
reports of each manufacturer shall be kept confidential and shall 
not be disclosed to any other member of the industry. 

8. To effectuate the policy of Title I of the National Industrial 
Recovery Act and subject to the approval of the Administrator, the 
method of selling cast-iron soil pipe, fittings, and plumbers' cast-iron 
specialties shall conform to the specimen uniform sales contracts 
for the various classes of purchasers — wholesalers, plumbers, " Di- 
rect-to- You " or " Mail Order House ", and municipal and Federal 
governments. 

9. To further effectuate the policies of the National Industrial 
Recovery Act, the Cast Iron Soil Pipe Association, the applicant 
herein, or such successor association as may hereafter be constituted 
bj^ the action of the Cast-Iron Soil Pipe Manufacturers, and three 
persons without vote, appointed by the President of the United 
States, shall constitute an agency to cooperate with the Adminis- 
trator as a planning and fair practice agency for the Cast-iron Soil 
Pipe Industry. Such persons appointed by the President shall at 
all times have access to all records of the Association. Such agency 
may from time to time present to the Administrator recommenda- 
tions based on conditions in the industry as tliej^ may develop from 
time to time which will tend to effectuate the operation of the pro- 
visions of this Code and the policies of the National Industrial 
Recovery Act, and in particular along the following lines: 

(a) Recommendations as to the requirements by the Adminis- 
trator of such further reports from persons engaged in the Cast-Iron 
Soil Pipe Industry, of statistical information and keeping of uni- 
form accounts as may be required to secure the proper observance 
of the Code and promote the proper balancing of production and 
consumption, and the stabilization of the industry and employment. 

(b) Recommendations for dealing with any inequalities that may 
otherwise arise to endanger the stability of the industry and of pro- 
duction and employment. Such recommendations, when approved 
by the President of the United States, shall have the same force and 
effect as any other provisions of this Code. Such agencj^ is also set 
lip to cooperate with the Administrator in making investigations as 
to the functioning and observance of any of the provisions of this 



264 

Code, at its own instance or on complaint of any person affected, and 
to report the same to the Administrator. 

10. If formal complaint is made to the Cast-Iron Soil Pipe Asso- 
ciation that the provisions of this Code have been violated by any 
employer the Planning and Fair Practice Agency provided for in 
section 9 shall investigate the facts and to that end may cause such 
examination or audit to be made as may be necessary. 

11. For all purposes of the Code the acts described as follows 
shall constitute unfair methods of competition : 

(a) Selling or offering to sell any products of the Cast-Iron Soil- 
Pipe Industry with intent to deceive purchasers or prospective pur- 
chasers as to the quantitj^, quality, size, grade, weight, or substance 
of such product. 

(b) The acceptance of orders for large quantities of pipe, fittings, 
or plumbers' cast-iron specialties by manufacturers except for a 
specific building operation and then making small deliveries at 
quantit}' prices for the purpose and with the effect of discriminating 
between purchasers. 

(c) Withholding from or inserting in the invoice facts which 
make the invoice a false record, wholly or in part, of the transac- 
tion represented on the face thereof, and of the payment or allow- 
ance of secret rebates, refunds, credits, unearned discounts, whether 
in the form of money or otherwise ; or the extension to certain pur- 
<?hasers of services or privileges not extended to all purchasers under 
like conditions. 

(d) To sell any product below the reasonable cost of such product. 
For this purpose cost is defined as the cost of direct labor plus the 
cost of material plus an adequate amount of overhead, including an 
amount for the use of any plant facilities employed as determined 
by cost-accounting methods recognized in the industry (and ap- 
proved by the agency established in paragraph 9, supra) . 

(e) Quoting a total or lump-sum price on any schedule of pipe, 
fittings, and plumbers' cast-iron specialties which does not show unit 
prices generally conceals confidential preferentials and results in 
most instances in fraud in the substitution of products of inferior 
quality, grade, weight, style, or size, which is detrimental to the 
interest of the public and the industry, and any addition or deduc- 
tion on any other basis than the unit price shown is price discrimi- 
nation. 

(f) The sale of pipe, fittings, and plumbers' cast-iron specialties 
to dealers of one class at a price identical with the price established 
for dealers of another class. 

12. Beginning with the effective date of this Code no member of 
the industry shall make or enter into any agreement or contract the 
effect of which will amount to the sale and/or delivery of pipe and 
fittings on consignment. 

13. Each manufacturer shall, within seven (7) days after the ef- 
fective date of the Code, file with the Association a list showing the 
list price and basic discounts for cast-iron soil pipe and fittings ; and 
from and after the expiration of such seven (7) days such members 
shall at all times maintain on file with the Association a list showing 
the list prices and basic discounts for all their pipe and fittings and 



265 

shall not make any change in such list prices and/or basic discounts 
except as herein provided. Each such list shall state the date upon 
which it shall become effective, which date shall be not less than ten 
(10) days after the date of filing such list with the Association. 
None of the list prices and/or basic discounts shown in any list filed 
by any member of the Code as herein provided shall be changed 
except by the filing by such member with the Association of a new 
list of its list prices and/or basic discounts which shall become effec- 
tive on the effective date therein specified, which shall not be less than 
ten (10) days after the date on which such new list prices and/or 
basic discounts shall have been so filed. Departure from the prices 
so published as herein provided shall constitute an unfair practice. 
List prices filed with the Association pursuant to this section shall be 
communicated promptly to all members at exactly the same time and 
in like manner. 

14. Membership in the Association shall be extended to manufac- 
turers of cast-iron soil pipe, fittings, and plumbers' cast-iron spe- 
cialties — to any person, partnership, corporation, or other entity in 
the Cast-Iron Soil Pipe Industry who accepts his share of the cost 
and responsibility therefor and agrees to abide by the rules therefor ; 
provided, however, that there shall be no inequitable restrictions 
placed upon membership in the association. 

15. (a) This Code and all provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sion of Clause 10 (b) of the National Industrial Recovery Act, from 
time to time to cancel or modify any order, approval, license, rule, 
or regulation, issued under Title I of said Act, and specifically to 
the right of the President to cancel or modify his approval of this 
Code or any conditions imposed by him upon his approval thereof. 

(b) Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in the circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions to this Code or 
additional codes will be submitted for the approval of the Presi- 
dent to prevent unfair competition in price and other unfair and 
destructive competitive practices and to effectuate the other purposes 
and policies of Title I of the National Industrial Recovery Act con- 
sistent with the provisions thereof. 
! 16. Employers in the Cast Iron Soil Pipe Industry shall comply 
'with the requirements of Section 7 (a) of the National Industrial 
Recovery Act, as follows : 

" That employees shall have the right to organize and bargain 

i collectively through representatives of their own choosing, and shall 

' be free from the interference, restraint, or coercion of employers 

of labor or their agents in the designation of such representative or 

self-organization, or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection; that no 

' employee and no one seeking employment shall be required as a 

condition of employment to join any union or to refrain from join- 

; ing, organizing, or assisting a labor organization of his own choosing ; 

and that employers shall comply with the maximum hours of labor, 



266 

minimum rates of pay, and other conditions of employment approved. 
or prescribed by the President." 

Alabama Pipe Company, 

Anniston Soil Pipe Company, 

Anniston Foundry Company, 

Bessemer Soil Pipe Works, 

Buffalo Pipe & Foundry Cor- 
poration, 

Central Foundry Company, 

Charlotte Pipe & Foundry Com- • 
pany, 

Crown Pipe & Foundry Com- 
pany, 

Eastern Foundry Company, 

East Penn Foundry Company, 

Essex Foundry Company, 

Goslin-Birmingham Mfg. Com- 
pany, 

Hajoca Corporation, 

Interstate Foundry Company, 

Jakes Foundry Company, 

J. D. Johnson Company, 

Kilby Pipe Company, 

Medina Foundry Company, 

Medina Iron & Brass Company, 

National Foundry Co. of N. Y., 

Pacific States Cast Iron Pipe 
Company, 

Eudistill Foundry Company, 

Reading Foundry & Sup. Com- 
pany, 

Somerville Iron Works, 

Southern Pipe & Foundry Com- 
pany, 

Salem Brass & Iron Mfg. Com- > 

pany. 

Stringer Bros. Company, 

Sanitary Pipe Company, 

Southern Pipe & Foundry Co., ; 

Inc., 

Sanitary Company of America i 

Wetter Pipe Company, 

Walworth Alabama Company, 

A. Weiskittel & Son Company, 

Harry C. Weiskittel Company. ^ 

ApiJioved Code No. 18 ^ 

Rpgistrv No. 1128/01 ' 

O 



Approved Code No. 19 

CODE OF FAIR COMPETITION 

FOR THE 

WALL PAPER MANUFACTURING INDUSTRY 

As Approved on September 7, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1983, for my approval of a Code 
of Fair Competition for the Wall Paper Manufacturing Industry, 
and hearings having been held thereon and the Administrator hav- 
ing rendered his report containing an analysis of the said Code of 
Fair Competition together with hi,s recommendations and findings 
with resj^ect thereto, and the Administrator having found that the 
said Code of Fair Competition complies in all respects with the 
pertinent provisions of Title I of said Act and that the require- 
ments of clauses (1) and (2) of sub-section (a) of Section 3 of the 
said Act have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 18, 1933, 
and otherwise, do adopt and approve the report, recommendations 
and findings of the Administrator and do order that the said Code 
of Fair Competition be and is hereby approved, subject to the fol- 
lowing condition : 

(1) To effectuate further the policies of the Act, a Wall Paper 
Manufacturing Industry Committee be created to cooperate with 
the Administrator as a Planning and Fair Practice Agency for the 
Wall Paper Manufacturing Industry, which Committee shall con- 
sist of five representatives of the Wall Paper Manufacturing In- 
dustry elected by a fair method of selection, to be approved by the 
Administrator, and three members without vote appointed by the 
Administrator. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

Septemher 7, 1933, 
29908 296-140 34 (267) 



August ^2, 1933. 
The President, 

The White House. 
My Dear Mr. President: This is a report of the hearing on the 
Code of Fair Competition for the Wall Paper Manufacturing Indus- 
try in the United States, conducted in Washington on xA.ugust 7th 
and 8th, 1933, in accordance with the provisions of the National 
Industrial Recovery Act, 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

Sec. IL On and after the effective date the minimum wage that 
shall be paid by any employer in the Wall Paper Manufacturing 
Industry shall be at the rate of thirty-five cents (350) per hour, or 
fourteen dollars ($14.00) per week for 40 hours of labor for males, 
and at the rate of thirty-two and one half cents (32^2^) per hour 
or thirteen dollars ($13.00) per week for 40 hours of labor for 
females. 

Sec. III. The limit of hours of labor for all employees excepting 
outside salesmen, emergencv repair crews, superintendents and their 
supervisory staff, shall be 40 hours in each week, but further pro- 
vided that all such employees paid on an hourly basis shall be paid 
at the rate of time and a half for all hours per week over 40. 

Economic Effect of the Code 

The Wall Paper Manufacturing Industry is one of the relatively 
small manufacturing industries in the United States. In 1929 there 
were 56 manufacturing plants which employed approximately 4,700 
workers; in 1931 there were 50 manufacturers employing approxi- 
mately 3,734 workers ; in 1933 there are only 36 manufacturers with 
a corresponding decrease in workers, which, because of lack of statis- 
tics it is impossible to estimate. 

The decline in the number of workers required to produce the 
necessary supply of wall paper has been consistent since 1923. From 
1931 until the present the decrease in employment became more 
marked. 

By reducing the customary 50-hour week which has prevailed in 
this industry to the 40-hour week required by the Code, the increase 
in employment will be approximately 15 i^ercent (15%) of 1929 
figures, or approximately 700 workers. 

Unless the consumption of wall paper greatly increases within 
the near future, this particular industry does not offer a very 
promising field for the reemployment of workers on any large scale. 

(268) 



269 



FINDINGS 



The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including without limita- 
tion, subsection (a) of Section 7, and subsection (b) of Section 10 
thereof ; and that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Wall Paper Manuf acturmg Industry ; and that 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or oppress small enterprises and will not operate 
to discriminate against them, and will tend to effectuate the policy 
of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 
Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

WALL PAPER MANUFACTURING INDUSTRY 



To effectuate the policjr of Title I of the National Industrial Re- 
covery Act insofar as it is applicable to the Wall Paper Manufac- 
turing Industry, the following provisions are established as a Code 
of Fair Competition for the Wall Paper Manufacturing Industry. 

I — Definitions 

A. The term " Wall Paper Manufacturing Industry " is defined 
to mean the process of printing, imprinting, or embossing upon raw 
paper stock a pattern and/or design in colors or otherwise, thus pro- 
ducing an article suitable for decoration or the embellishment of 
walls and/or ceilings in homes, hotels, apartments, or other buildings. 

B. The term " manufacturer " shall include, but without limita- 
tion, any person, partnership, association, trust, or corporation, and 
all who employ labor in the conduct of any branch of the Wall Paper 
Manufacturing Industry as defined above. 

C. The term " employees " as used in this Code, shall include all 
persons employed in the conduct of the operations of manufacturing 
wall paper. 

D. The term " printing machines ", as used herein, is defined to 
mean wall paper printing machines; or ink embossing machines 
producing finished wall paper that has not been printed. 

E. The term " line or lines ", as used herein, is defined to mean all 
the wall papers produced by any manufacturer during a current 
year. 

F. The term " current year " is defined to mean the twelve months' 
period succeeding June 30th of each year. 

G. The term " jobs " as used herein is defined to mean all unsold 
wall papers which have been in a line of a manufacturer in any cur- 
rent year and which shall not be included in the line or lines of such 
manufacturer in the succeeding current year. 

H. The term " effective date ", as used herein, is defined as the 
second Monday after the approval by the President of the United 
States of this Code or any part thereof or addition thereto. 

II — Minimum Wages 

(a) On and after the effective date the minimum wage that shall 
be paid by any employer in the Wall Paper Manufacturing Industry 
shall be thirty-five cents (35^) per hour or fourteen dollars ($14.00) 
per week for forty (40) hours of labor for males, and at the rate 
of thirty-two and one half cents (321/20) per hour, or thirteen dol- 
lars ($13.00) per week for forty (40) hours of labor for females. 

(270) 



271 

(b) The existing amounts by which wage rates in the higher-paid 
classes exceed wages in the lower-paid classes shall be maintained. 

Ill — Maximum Hours 

(a) The limit of hours of labor for all employees, excepting out- 
side salesmen, emergency repair crews, superintendents, and their 
foremen, shall be forty (40) hours in each week; but further pro- 
vided that all such excepted employees paid on an hourly basis 
shall be paid at the rate of time and one half for all hours per week 
over forty (40). 

(b) Each manufacturer in this industry shall be limited to two 
eight-hour shifts; however, no employee shall be required to work 
more than one eight-hour shift in any one day. 

IV 

On and after the effective date employers shall not employ or 
have in their employ any person under the age of 16 years. 



As required by Section 7 (a) of Title I of the National Industrial 
Recovery Act it is provided : 

"(1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; 

"(2) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union 
or to refrain from joining, organizing, or assisting a labor organi- 
zation of his own choosing; 

"(3) That employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President." 

VI — Standards 

Nothing contained in this Section shall apply to or affect in any 
way contracts between members of the Wall Paper Manufacturing 
Industry and others in existence prior to the effective date of this 
Code. 

(a) This Code hereby provides that all manufacturers of wall 
paper shall comply with Commercial Standard CS 16-29 Bureau 
of Standards, as adopted on May 25, 1929, at a conference of manu- 
facturers, distributors, users of wall paper, and others interested, 
and approved and promulgated August 1, 1929, by the Department 
of Commerce. 

(b) As an addition to the matter set forth in the said Commercial 
Standard CS 16-29, a further standard for this Industry and fur- 
ther regulation of the kinds and weights of raw stock to be used 



275 

hereby are established, to wit: No wall paper printed on less than 
ten (10) ounce stock, or below the said Commercial Standard re- 
quirements in any other respect, shall bear any mark or statement 
that such papers conform to the said Commercial Standard CS 
16-29. 

(c) No wall paper shall be printed on raw stock in weight less 
than nine (9) ounces, except that to be marked " less than nine (9) 
ounce stock " on the selvage, 

(d) Ungrounded goods shall be plainly marked by the manufac- 
turer on the selvage of the Wall Paper and all manufacturers shall 
mark their samples with the word " ungrounded." 

VII 

The following shall constitute unfair methods of competition : 

(a) The copying of designs and/or patterns. 

(b) The selling of goods at less than cost, except jobs. 

(c) Failure to maintain an adequate differential in the selling 
prices to the wholesaler and retailer. 

(d) The making of sample books by any manufacturer for any 
customer and failing to include in the cost of said sample books 
the cost of the wall paper used therein, charged at the same rate 
by said manufacturer to said customer as the goods said customer 
has purchased for stock, and in addition any other expenses in- 
curred in the making of said sample books. This shall not apply 
to one book known as Book of Selections furnished to a customer 
by a manufacturer with his order. No more than one sample book 
or Book of Selections shall be given to a customer by a manufacturer. 

(e) The selling of goods as jobs by any manufacturer before the 
31st day of December in any yea.r, and at lower prices than 331/3 
percent below the individual seller's established current minimum 
price of the same grade to the same buyer. 

(f) The false marking or branding of products of the Industry. 

(g) The making of or causing or permitting to be made or pub- 
lished any false, untrue, or deceptive statement by way of advertise- 
ment or otherwise, concerning the grade, quality, quantity, sub- 
stance, character, nature, origin, size, or preparation of any product 
of the Industry. 

(h) The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or b}^ other false representations, or in disparage- 
ment of the grade or quality of their goods. 

(i) The imitation of the trade-marks, trade names, slogans, or 
other marks of identification of competitors. 

(j) The securing of information from competitors concerning 
their business by false or misleading statements or representations 
or by false impersonations of one in authority. 

(k) The payment or allowance of unearned rebates, refunds, 
credits, or discounts, whether in the form of money or otherwise. 

(1) Deviation from the established standards of the Industry by 
any deceptive or false means or devices whatsoever. 

(m) To make any sample allowance to any purchaser on any 
borders or any goods less than 30 inches in width. On 30-inch goods 



273 

the sample allowance shall not be greater than an allowance of eight 
yards for the price of five. 

VIII 

No manufacturer shall sell any goods on more favorable terms 
than the following: 91 days net (with no dating). Discount for 
cash payment, 3%, 30 days; 2%, 60 days; 1%, 90 days. An addi- 
tional deduction to be allowed for cash payment within discounting 
periods for shipments made in September, 4% ; in October, 3% ; in 
November, 2% ; in December, 1%. Cash discounts and deductions 
to apply for cash payments only, and not to be allowed when other 
charges are overdue. 

IX 

All manufacturers shall sell their products on the basis f.o.b. own 
mills or mills, with no greater freight allowance than railroad freight 
equalization, carload rates or L.C.L. rates, as the case may be, to 
nearest competing operating mill to the customer being sold. No 
freight shall be prepaid by any manufacturer. 

X 

The establishment of a uniform Cost System for this Industry 
is recommended and shall be established as soon as possible under 
the direction of the Executive Committee of the Wall Paper Man- 
ufacturing Industry. 

XI 

With a view to keeping the President of the United States and 
the Administrator informed as to the observance of nonobservance 
of this Code, and as to whether the Wall Paper Manufacturing In- 
dustry is taking appropriate steps to effectuate in all respects the 
declared policy of the National Industrial Recovery Act, the Execu- 
tive Committee of the Wall Paper Manufacturing Industry, is hereby 
constituted and shall be composed of five members, chosen by a 
fair method of selection and approved by the Administrator. Each 
employer shall file with the Executive Committee statistics covering 
the number of employees, wage rates, employee earnings, hours of 
work, and such other data or information as may be from time to 
time required by the Administrator. 

Except as otherwise provided in the National Industrial Recovery 
Act, all statistics, data, and information filed in accordance with 
the provisions of Article XI shall be confidential, and the statistics, 
data, and other information of one employer shall not be revealed 
to any other employer except for the purpose of administering or 
enforcing the provisions of this Code. The Executive Committee of 
the Wall Paper Manufacturing Industry shall have access to any 
and all statistics, data, and information that may be furnished in 
accordance with the provisions of this Code. 



274 
XII 

Any employer may participate in the endeavors of the Executive 
Committee of the Wall Paper Manufacturing Industry relative to 
the revisions or additions to this Code by accepting the proper pro 
rata share of the costs and responsibility of creating and administer- 
ing it. 

XIII 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
of Clause 10 (b) of the National Industrial Recovery Act, from time 
to time to cancel or modify any order, approval, license, rule, or 
regulation, issued under Title I of said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

XIV 

Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. They shall remain in 
effect unless and until so modified or eliminated or until the expira- 
tion of the Act. It is contemplated that from time to time supple- 
mentary provisions to this Code or additional codes will be submitted 
for the approval of the President, to prevent unfair competition in 
price and other unfair and destructive practices and to effectuate 
the other purposes and policies of Title I of the National Industrial 
Recovery Act consistent with provisions thereof. 

XV 

If any provision of this Code is declared invalid or unenforceable, 
the remaining provisions shall nevertheless continue in full force 
and effect the same as if they had been separately presented for 
approval and approved by the President. 

XVI [ 

This Code shall be in operation on and after the effective date as 
to the whole Wall Paper Industry except as an exemption from or a 
stay of application of its provisions may be granted by the Admin- 
istrator to a person applying for the same or except as provided in 
an Executive Order. 

XVII 

■I 

This Code of Fair Competition shall become effective on the 
second Monday after the approval of same by the President of the 
United States. 

The undersigned do hereby certify that the foregoing is a true 
copy of the Code of Fair Competition for the Wall Paper Manu- 



275 

facturing Industry submitted to the Administrator under the Na- 
tional Industrial Recovery Act, as amended by authority of the 
Executive Committee of the Wall Paper Manufacturing Industry. 

E. M. Lennon, 
Chairman^ Executive C ommAttee. 
Albert R. Palmer, 
Memher Executive G ornmittee, 
August 18. 1933. 

National Recoveey Administration, 

July 25, 1933. 
Approved Code No. 19. 
Registry No. 410/1/02. 

o 



Approved Code No. 20 
CODE OF FAIR COMPETITION 

FOR THE 

SALT PRODUCING INDUSTRY 

As Approved on September 7, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Salt Producing Industry, and hearings 
having been held thereon and the Administrator having rendered his 
report containing an analysis of the said Code of Fair Competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions of 
Title I of said Act and that the requirements of clauses (1) and (2) 
of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code of Fair 
Competition be and is hereby approved, subject to the following 
condition : 

(1) To effectuate further the policies of the Act, a " Code Com- 
mittee " of the Salt Producing Industry be created to cooperate with 
the Administrator as a Planning and Fair Practice Agency for the 
Salt Producing Industry, which Code Committee shall consist of 
seven representatives of the Salt Producing Industry elected by a 
fair method of selection, to be approved by the Administrator, and 
three members without vote appointed by the Administrator. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A clTninistrator. 

The White House, 

September 7, 1933. 

(277) 
29843 296-141 34 



August 28, 1933. 
The President, 

Th'S White House. 
My Dear Mr. President: This is a report of the hearing on the 
Code of Fair Competition for the Salt Producing Industry in the 
United States, conducted in Washington on August 14th, 1933, in 
accordance with the provisions of the National Industrial Recovery- 
Act. 

Provisions of this Code as to Wages and Hours 

This Code provides 350 per hour for males and 320 per hour for 
females in the North; 300 per hour for males and 250 per hour for 
females in the South. 

A work week of 42 hours in processing and 40 hours in all other 
branches, is provided for the North, and 48 hours a week allowed 
for the South. 

Economic Effect of the Code 

The Salt Producing Industry is a minor industry in the United 
States. In 1929 there were 58 establishments giving employment to 
about 5.458 persons. In 1931 the number of firms had dropped to 53 
and the number of employees to 4,728. It has been estimated that 
in June 1933 the number of employees had dropped to 4,387. 

Operating practices in this industry differ in marked degree in 
various parts of the country because of the source and method used 
to obtain salt; the hour and wage rates previously prevailing; and 
the type of community in which the salt production has been carried 
on ; because of these factors, the wage and hour provisions contained 
in this code are not as uniform as in most codes, but do represent 
substantial increases. For example — in the case of males in Louisi- 
ana, there is an increase in the hourly rate paid of approximately 
80% and, in the case of females, 140%. 

You will note that there is a wage differential provided for North 
and South, as well as for male and female labor. These differentials 
are not based on sex, race, or regional grounds, but solely on the basis 
of the kind of work performed and the varying cost of living. 

Of outstanding note in this code is the " child-labor " provision, 
particularly that part which reads " No one under 21 years of age 
shall be permitted to work in the mines below ground." This is 
indeed a forward-looking provision. 

(278) 



279 

Hours are markedly reduced from the prevailing 60- to TO-hour 
week. The 7-day week is eliminated and every worker is guaranteed 
one day's rest in seven. 

It is estimated that approximately 20% more employees will be 
required. 

FINDINGS 

The Administrator finds that — 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limita- 
tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Salt Producing Industry; and that 

(c) The Code as recommended is not designed to promote 
monopolies or to eliminate or oppress small enterprises and will not 
operate to discriminate against them, and will tend to effectuate the 
policy of Title I of the National Industrial Kecovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully submitted. 

Hugh S. Johnson, 

Adininistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

SALT PRODUCING INDUSTRY 

Article 1 — Purpose 

This Code is set up for the purpose of increasing employment, es- 
tablishing fair and adequate wages, effecting necessary reduction of 
hours, improving standards of labor and eliminating unfair trade 
practices to the end of enabling the Salt Producing Industry to do 
its part toward establishing that balance of industries which is nec- 
essary to the restoration and maintenance of the highest practical 
degree of public welfare. 

It is the declared purpose of the Salt Producing Industry by ad- 
herence to this Code to bring, insofar as may be practicable, the 
rates of wages paid wnthin the Salt Producing Industry, to such 
levels as are necessary for the creation and maintenance of a normal 
standard of living in the locality in which the workers reside; and 
from time to time to revise the rates of wages, in such manner as will 
currently reflect the equitable adjustment to variations in the cost of 
living. 

No provision in this Code shall be interpreted or applied in such a 
manner as to — 

(a) Promote monopolies. 

(b) Permit or encourage unfair competition. 

(c) Eliminate, oppress, or discriminate against small enterprises. 

Article 2 — Participation 

Any employer in the Salt Producing Industry may participate in 
the endeavors of the Salt Producers Association relative to the re- 
visions or additions to the Code by accepting the proper pro rata 
share of the cost and responsibility of creating and administering it, 
either by becoming a member of the Salt Producers Association or 
by paying to it an amount equal to the dues from time to time pro- 
vided to be paid by a member in like situation of the Salt Producers 
Association. 

Article 3 — Labor Code 

(a) Employees in the Salt Producing Industry shall have the 
right to organize and bargain collectively through representatives of 
their own choosing and shall be free from the interference, restraint, 
or coercion of employers of labor, or their agents, in the designation 
of such representatives or in self -organization or in other concerted 
activities for the purpose of collective bargaining or other mutual 
aid or protection. 

(b) No employee or no one seeking employment in the Salt Pro- 
ducing Industry shall be required as a condition of employment to 

(280) 



281 

join any company union, or to refrain from joining, organizing, or 
assisting a labor organization of his own choosing, 

(c) Employers in the Salt Producing Industry shall comply with 
the maximum hours of labor, minimum rates of pay, and other con- 
ditions of employment approved or prescribed by the President of 
the United States. 

WAGES 

(d) Two minimum wage scales shall be jDrovided, one for all pro- 
ducing fields except Texas, Louisiana, and West Virginia, herein- 
after designated " North " and one for Texas, Louisiana, and West 
Virginia, hereinafter designated " South." 

(e) The minimum hourly wages in the North shall be: 

Male, 35^ per hour. 
Female, 32^ per hour. 

(f ) The minimum hourly wages in the South shall be : 
Male, 30^- per hour. 
Female, 250 per hour. 

(g) The differential in the wage rate paid in the Salt Producing 
Industry to male and female labor is not intended to. nor shall it 
operate to discriminate in wages on account of sex. Where females 
are employed at the same kind of work as males, and produce the 
same amount of work, they shall receive the same pay. 

(h) Learners must be paid not less than 80% of the minimum 
wage of an adult of the same sex, in the same area. The total 
amount paid to learners shall not exceed in any calendar month 5% 
of the total wages paid to all labor of such employer. The learning 
period for common labor is limited to a 4-week period and for other 
classes of labor to a 6-week period. 

(i) To avoid frustration of the wage provisions of this Code, by 
changing from hour to piecework or other rates, it is provided that 
the minimum wage provisions in this Code establish a guaranteed 
minimum rate of pay per hour of employment, regardless of whether 
the employees' compensation is otherwise based on a time rate, piece- 
work, or tonnage basis of performance. 

(j) An equitable adjustment shall be made of the wages of the 
employees now receiving more than the minimum wage as provided 
in this Code. Such equitable adjustment shall mean that differen- 
tials existing prior to the formulation of this Code shall be main- 
tained for all workers receiving $30.00 per week or less. In no case 
shall hourly wage rates be lowered. 

AVORKING HOURS 

(a) The standard work week of the Salt Producing Industry in 
the North, excluding California, shall be divided into two classes: 
(1) Processing or manufacturing and (2) all other classes of labor, 
including miners. 

For processing or manufacturing operations, hours of labor shall 
not exceed a maximum of 42 hours in any one week; provided, how- 
ever, that no employee shall work more than 6 days in any one week. 



282 

For all other classes of labor, including miners, factory, oflEice, and 
clerical employees, an average during any six months' period of not 
to exceed 40 hours in any one week; provided, however, that the 
maximum hours in any one week shall not exceed 48, and further 
provided that no employee shall work more than 6 days in any one 
week. 

(b) The standard work week of the Salt Producing Industry in 
the South, including California, shall not exceed an average maxi- 
mum of 48 hours in any one week during any 6 months' period; 
provided, however, that the maximum hours in any one week shall 
not exceed 54, and further provided that no employee .shall work 
more than 6 days in any one week. 

(c) On and after the eifective date of this Code, employers in the 
Salt Producing Industry shall not operate on a schedule of hours of 
labor for their employees, other than executives and supervisory 
staff receiving $35.00 per week or more, and outside salesmen, except 
as above provided. 

(d) No producer in the Salt Producing Industry shall have in his 
employ any one who is less than 16 years of age. 

(e) No one under 21 years of age shall be permitted to work in the 
mines below ground. 

(f ) No producer in the Salt Producing Industry shall permit any 
employee, who has performed work for one or more other employers 
to work for such producer such number of hours as would result in a 
violation of this Code had all such work been performed for such 
producer. 

(g) In the event that any producer in the Salt Producing Industry 
shall also be an employer in another industry, such producer shall 
not be prohibited from paying any wages or working any hours 
approved under any code governing such other industry, but for 
purposes of pricing salt, however, the wages provided herein shall 
be used as the basis for calculating costs. 

Article 4 

(a) It is recognized that salt is a cheap commodity and its distribu- 
tion is governed to a large extent by transportation costs. Each 
field of production has its own natural marketing territory, the 
extent of which is limited by transportation costs, in which its major 
salt distribution is concentrated. The fields of production so 
recognized at this time are : 

New York State West Virginia Texas 

Ohio Utah Louisiana 

Michigan Oklahoma 

Kansas California 

Time and experience have developed an orderly method of market- 
ing under which the producers in each producing field publish their 
prices applying in their respective natural marketing fields; and 
this industry declares its policy to be that such practices shall be 
continued. Each producer in^ach field of production shall in- 
dividually publish to the trade and to the Code Committee the prices 
at which he will sell. Any producer may change his prices provided 
ten days' prior notice thereof be given to the Code Committee. The 



283 

minimum prices published in any marketing field by any producer 
in that field shall be the lowest prices at which any producer may 
sell in that field. The Code Committee shall furnish such published 
prices to the Administrator at his request. Upon complaint to the 
Code Committee, or on its own motion, the Code Committee may 
require the reduction of the minimum prices in existence at any time 
for any marketing field by reason of the operation of the provisions 
of this Article, to figures which shall be found by the Committee to 
constitute reasonable minimum prices; the action of the Code Com- 
mittee under this Article to be subject to review by the Administra- 
tor, who, in the event of their failure to act, may act upon his own 
motion. 

No producer shall sell any grade of salt at a price which will net 
him, at his point of production, a price less than his current cost of 
production or the current cost of the lowest-cost producer in the field 
in which the sale is made. 

(b) Published prices shall include terms of payment, length of 
bookings or contracts, whether prices are guaranteed against decline 
and such other provisions as may be necessary to fully inform the 
trade of all conditions of sale. 

(c) Terms of sale shall be fully stated and strictly adhered to 
and invoice shall show same. There shall be no discrimination be- 
tween customers. Difference in price based on difference in grade, 
quantity, quality, selling, or transportation costs, or made in the 
same or different communities in good faith to meet competition, 
shall not constitute discrimination. 

(d) Prices and discounts shall be openly and publicly announced 
and strictly adhered to. 

(e) The following shall be deemed to be unfair trade practices 
in this industry : 

1. Variations from openly and publicly announced prices and 
terms. 

2. Secret allowances by way of discount, brokerage, storage, or 
advertising. 

3. Variations from openly announced grade or package differ- 
entials. 

4. Substitution of grades or packages. 

5. Delayed billings. 

6. Rebates or other similar allowances by any name or of any 
nature. 

7. Storage of salt in customers' warehouses. 

8. Special services or privileges to certain purchasers when not 
extended to all purchasers under like terms and conditions. 

9. Offerings of salable gifts or prizes. 

10. Free deals to any class of purchasers or prices made in com- 
bination with any product or commodity. 

11. Making of derogatory statements about competitors' prod- 
ucts or regarding the character, management, or financial standing 
of a competitor. 

12. The use of deceptively slack filled or deceptively shaped con- 
tainers. 

13. False or misleading advertising, mislabeling, or misbranding. 



... I 

14. The adoption of brands or trade marks (either in design or 
name) which so closely approximate the brands or trade marks of 
a competitor as to deceive or confuse a buyer by similarity of ap- 
pearance or brand, 

15. Inducing or attempting to induce a breach or cancellation of 
a contract between a competitor and his customer. 

16. Giving of gratuities or special commissions to buyers, or re- 
wards, or payments to the employees of buyers or distributors, or 
the lavish entertainment thereof. 

17. Selling below cost of production. 

COST ACCOUNTING 

(f) It is the judgment of this industry that an accurate knowl- 
edge of costs is indispensable to intelligent and fair competition. 
It shall be the duty of the Code Committee to make such studies 
and surveys as may be necessary to the end that a system of cost 
accounting, capable of uniform application, shall be developed for 
the industry. The Code Committee may, from time to time, require 
manufacturers to furnish it with full and complete information re- 
lating to costs. 

Article 5 — Administration of the Code 

(a) With a view to keeping the President informed as to the ob- 
servance or nonobservance of this Code of Fair Competition, and 
as to whether the Salt Producing Industry is taking appropriate 
steps to effectuate the declared policy of the National Industrial 
Recovery Act, a committee to be known as the " Code Committee " 
is hereby established and is composed of the President of the Salt 
Producers Association, the Executive Committee thereof, together 
with two members to be chosen by the Associate members of said 
Association. 

(b) Such committee is to cooperate with the Administrator as 
a planning and fair-practice agency for the Salt Producing Industry. 
It may (1) adopt rules and regulations for the orderly presentation 
and adjustment of complaints, subject to the approval of the Admin- 
istrator; (2) approve recommendations for exceptions to the market 
provisions of this Code; (3) make investigations and report to the 
President information relating to the importation of salt from 
foreign countries and its effect upon this industry. It shall have 
the power to require from time to time such reports from the industry 
as may be required by the Administrator, and to enable it to furnish 
such information as may be required from time to time by the Presi- 
dent or the National Recovery Administration and, generally, shall 
be constituted as the agency to assist in carrying out the provisions 
and purposes of Title I of the National Industrial Recovery Act, and 
the rules and regulations made pursuant thereto and for the formu- 
lation, with the approval of the President, of such further Code 
provisions as may be necessary to insure fair competition and effectu- 
ate the provisions of the Act. 



285 

(c) Where the costs of executing contracts, entered into in the 
Salt Producing Industry prior to the approval of the President of 
the United States of this Code, are increased by the application of the 
provisions of that Act to the Industry, it is equitable and promotive 
of the purposes of the National Industrial Recovery Act that appro- 
priate adjustments of such contracts to reflect such increased costs 
be arrived at by arbitral proceedings or otherwise, and the Salt 
Producers Association, the applicant for this Code, is constituted an 
agency to assist in effecting such adjustments. 

(d) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sion of section 10 (b) of the National Industrial Recovery Act, from 
time to time to cancel or modify any order, approval, license, rule, or 
regulation, issued under Title I of said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

(e) This Code shall be in effect beginning ten days after the day 
of its approval by the President of the United States. 

(f ) Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of tlie President, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions to this Code or ad- 
ditional codes will be submitted for the approval of the President to 
prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Recovery Act consistent 
with the provisions hereof. 

I, Frank Morse, Secretary, do hereby certify that I am the duly 
elected Secretary of the Salt Producers Association, and further 
certify that the foregoing is a true copy of the Code of Fair Com- 
petition for the Salt Producing Industry submitted to the Adminis- 
tration under the National Industrial Recovery Act, as amended by 
authority of the Executive Committee of the Salt Producers 
Association. 

Frank Morse, 
Secretary of The Executive Committee. 

August 28, 1933. 

Approved Code No. 20. 
Registry No. 140-1-01. 

o 



Approved Code No. 21 
CODE OF FAIR COMPETITION 

FOR THE 

LEATHER INDUSTRY 

As Approved on September 7, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Leather Industry, and hearings having 
been held thereon and the Administrator having rendered his report 
containing an analysis of the said Code of Fair Competition together 
with his recommendations and findings with respect thereto, and the 
Administrator having found that the said Code of Fair Competi- 
tion complies in all respects with the pertinent provisions of Title I 
of said Act and that the requirements of clauses (1) and (2) of sub- 
section (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dviinistrator. 

The White House, 

September 7, 1033. 

29179° 206-58 34 (287) 



Septeniber 7, 1933. 
The President, 

The White House., Washington., D.O. 
My Dear Mr. President: This is a report of the hearing on the 
Code of Fair Competition for the Leather Industry in the United 
States, conducted in Washington on August 21, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

Article IV — Wages 

1. Except as noted in Paragraph 4 of this Article, no employee 
in the states of Maryland, West Virginia, Virginia, Kentucky, Ten- 
nessee, North Carolina, Georgia, Alabama, Mississippi, Florida, Ar- 
kansas, Louisiana, Oklahoma, Texas, New Mexico, or Arizona, shall 
be paid less than 32l^^ per hour. Elsewhere in the United States 
no female employee shall be paid less than 350 per hour, no male 
employee less than 40^ per hour. Unskilled labor receiving in excess 
of these minimum rates shall not be reduced. 

2. The foregoing minimum rates are not a discrimination by rea- 
son of sex but because of difference in the work of the industry. 
Where women do the same kind and amount of work as men they 
shall receive the same wages. 

3. No employee earning less than 30 dollars per week shall receive 
less for 40 hours work than he was receiving as of April 1, 1933, for 
the established work week at that time. 

4. Exceptions to the above minimum rates are learners for a period 
up to six weeks who shall receive not less than 80% of the minimum ; 
and employees disabled by old age or other causes employed in the 
plant; neither class to exceed in number 5% of the pay roll. 

5. This Article establishes a guaranteed minimum rate of pay, 
regardless of whether the employee is compensated on a time or 
piecework basis. 

Article VI — Hours 

1. No employer shall employ any person except as hereafter men- 
tioned over 40 hours average in any 26 weeks' period, not over 40 
hours in any week except by payment of 11/^ rate for overtime, nor 
over 8 hours in any day except by payment of li/^ for overtime. 

2. From the provisions of paragraph one the following classes 
shall be excepted: 

(a) Watchmen, supervisory staff, executives, and salesmen. 

(288) 



289 

(b) Maintenance workers, engineers, firemen, beltmakers, emer- 
gency service workers, patent leather luggers and sorters oi whole 
leather, who may not work over 40 hours in any one week, except 
by payment of ly^ rate for overtime, nor over 8 hours in any one 
day except by payment of ly^ rate for overtime. 

(c) Office workers whose maximum working hours shall be an 
average of 40 hours a week over a 26-week period. 

3. Further exceptions as to hours shall apply to any emergency 
situation which may arise whereby the product of the employer may 
be spoiled or destroyed while in a perishable condition, and in such 
cases the employer shall be empowered to put such product through 
his regular processes into a nonperishable condition, and for such 
emergency, overtime shall be paid as provided for the groups of 
workers designated in Paragraphs 1 and 2 (b) of this Article. 

4. There shall be no evasion of this Code by reclassification 
of the function of workers. A worker shall not be included in one 
of the above exceptions unless the identical functions which he 
performs were identically classified on June 16, 1933. 

5. For the purpose of this section, the first 26 weeks' period for 
each employee in the employment of any member of the industry at 
the effective date hereof shall begin with such date. The first 26 
weeks' period for any employee hereafter employed shall begin with 
the date of employment with such employer. 

6. The provisions for maximum hours set out in this section 
establish a maximum number of hours of labor per week for each 
employee so that under no circumstances shall any employee know- 
ingly be employed or permitted to work for one or more employers 
in the industry in the aggregate in excess of the prescribed number of 
hours. 

ECONOMIC EFFECT OF THE CODE 

The maximum work week set at 40 hours, with practically no 
exemptions, is eminently satisfactory in view of the number of per- 
sons whose reemployment it will affect. Over 80% of the workers 
at current levels of operation will have their hours of labor shortened 
by this provision, and total employment in the Industry will rise 
again to the 1929 peak levels, 52,000 employees in leather tanning 
alone, without any further increase in business. If business expands, 
as we expect it to, the employment will soon exceed even the 1929 
peak for the Industry. If we should go any further in shortening 
the hours of work in this Industry, there would be considerable 
danger of creating severe shortages of suitable types of trained labor 
in many plants, particularly those located in isolated rural com- 
munities. 

The wage provisions in the Leather Code are perhaps not ideal, 
but they certainly effect the best possible compromise in vieAv of the 
existing differentials in the Industry and the ability of the Industry 
to bear its share of the N.R.A. program of expanding purchasing 
power. 

Under the Code, in only two sections of the Industry will wages 
be below the 1929 levels, and in these cases the difference is a matter 
of less than 10%, while the increase in the Code levels over May, 



290 

June, 1933, ranges from 22 to 62%. It is estimated that the average 
increase over early 1933 will be 30 or 35% in hourly earnings, and 
that compared with 1929 the wages under the Code will deviate less 
than 5%. Since this sharp increase in wages will be accomplished 
at no reduction in the number employed, the increase in purchasing 
power will amount to between 30 and 35% from May, June, 1933, 
as a base. 

The North-South differential, although it is not as large as that 
created in the Steel, Lumber, and Shipbuilding Codes, is greater than 
the differential proposed in the Cotton Textile Code, and a few others. 
The 71/^0 differential in the Leather Code is, in our opinion, the 
smallest differential which could be imposed without running a grave 
risk of closing down a substantial portion of southern tanneries and 
forcing all southern tanneries to discharge their present negro labor 
and substitute for it more competent labor (white) which is available 
in their communities. We feel that a higher minimum in the South 
would work a grave injury to the negro and we should like to 
avoid it. 

The female differential might well be reduced; in fact, the pro- 
ponents of the Code do not object strenuously to eliminating it 
entirely. However, it is a fact that the demand for women in the 
Industry is of such a character that any reduction in differential 
below 5^ would throw several thousand women out of work, turning 
over their jobs to literally a few score men who would take their 
places with " seasoning " machines. Since this would tend to defeat 
the purposes of the Administration, we do not feel it wise to reduce 
the female differential below 5^. 

In considering the Leather Code, it must be remembered that all 
the provisions in it have been worked out as a coordinated organic 
whole, and that any changes in any provisions will make necessary 
readjustments in the other provisions in order not to work grave 
injury to individuals and sections of the Industry. For example, any 
clause prohibiting the reduction of total weekly earnings below the 
total amount earned in a given week in the past might impose impos- 
sibly heavy burdens upon a few leather companies that were working 
as long as 60 hours even during the depression. A modifying clause 
of this nature would force either widespread evasion of the spirit of 
the Act by the hiring of new employees to displace old workers, who, 
by virtue of this provision were being paid 50% above the minimum 
rate for common labor, or it would force the companies involved to 
close their tanneries and open up elsewhere. 

FINDINGS 

The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limita- 
tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

(b) The applicant group imposes no inequitable restrictions on ad- 
mission to membership therein and is truly representative of the 
Leather Industry ; and that 



291 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or oppress small enterprises and will not operate 
to discriminate against them, and will tend to effectuate the policy 
of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully submitted. 

Hugh S. Johnson, Administrator, 



CODE OF FAIR COMPETITION 

FOR THE 

LEATHER INDUSTRY 

Article I — Purpose 

For the purpose of effectuating the policy of Title I of the 
National Industrial Recovery Act, the following provisions are estab- 
lished as a code of fair competition for the leather industry. 

Article II — Definitions 

The term " leather industry " shall be held to comprise all persons 
engaged in tanning or finishing leather, for further fabrication or 
for sale, for their own account or for the account of others, or per- 
forming any operation subsidiary thereto, or having leather tanned 
or finished in American factories, or engaged in the sale of Ameri- 
can tanned or finished leather for their own account or for the 
account of others, and persons, approved by the National Recovery 
Administration, engaged in the cutting or further partial fabrication 
of leather. 

The term " employer " as used herein shall mean any member of 
the industry. 

The term " employee " as used herein shall mean any person 
employed in any phase of the industry. 

The term " effective date " as used herein is defined to be the 
second Monday after the approval by the President, this period 
being necessary to protect perishable products in process. 

The term " persons " shall include natural persons, partnerships, 
associations, trusts, and corporations. 

Article III — Application 

All members of the industry shall comply with the provisions of 
this code and are eligible for membership in the Tanners' Council of 
America, and/or any divisional trade association now existing or 
which may be organized with the approval of the National Recovery 
Administration for any branch of the leather industry for the pur- 
pose of administering this code. Such organization or organizations 
have not and shall not set up inequitable restrictions as to member- 
ship and shall be truly representative. 

Article IV— Wages 

1. Except as noted in Paragraph 4 of this Article, no employee 
in the States of Maryland, West Virginia, Virginia, Kentucky, Ten- 
nessee, North Carolina, Georgia, Alabama, Mississippi, Florida, 
Arkansas, Louisiana, Oklahoma, Texas, New Mexico, or Arizona 

(292) 



293 

shall be paid less than 321/20 per hour. Elsewhere in the United 
States no female employee shall be paid less than 35(i^ per hour, no 
male employee less than 400 per hour. Unskilled labor receiving 
in excess of these minimum rates shall not be reduced. 

2. The foregoing minimum rates are not a discrimination by 
reason of sex but because of difference in the work of the industry. 
Where women do the same kind and amount of work as men they 
shall receive the same wages. 

3. No employee earning less than 30 dollars per week shall re- 
ceive less for 40 hours work than he was receiving as of April 1, 
1933, for the established work week at that time. 

4. Exceptions to the above minimum rates are learners for a 
period up to six weeks who shall receive not less than 80% of 
the minimum; and employees disabled by old age or other causes 
employed in the plant; neither class to exceed in number 5% of 
the pay roll. 

6. This Article establishes a guaranteed minimum rate of pay 
regardless of whether the employee is compensated on a time or 
piecework basis. 

Article V- — Child Labor 

On and after the effective date employers in the Leather Industry 
shall not employ or retain any minor under the age of sixteen years, 
provided however, that where a State law provides a higher mini- 
mum age, no person below the age specified by such State law shall 
be employed by the Trade or Industry within that State. 

Article VI — Holtis 

1. No employer shall employ any person except as hereafter men- 
tioned over 40 hours average in any 26 weeks' period, not over 40 
hours in any week except by payment of ll^ rate for overtime, nor 
over 8 hours in any day except by payment of II/3 rate for overtime. 

2. From the provisions of paragraph one the following classes shall 
be excepted : 

(a) Watchmen, supervisory staff, executives, and salesmen. 

(b) Maintenance workers, engineers, firemen, beltmakers, emer- 
gency service workers, patent leather luggers and sorters of whole 
leather, who may not work over 40 hours in any one week, except by 
payment of II/3 rate for overtime, nor over 8 hours in any one day 
except by payment of IV3 rate for overtime. 

(c) Office workers whose maxim.um working hours shall be an aver- 
age of 40 hours a week over a 26-week period. 

3. Further exceptions as to hours shall apply to any emergency 
situation which may arise whereby the product of the employer may 
be spoiled or destroyed while in a perishable condition, and in such 
cases the employer shall be empowered to put such product through 
his regular process into a nonperishable condition, and for such 
emergency overtime shall be paid as provided for the groups of 
workers designated in Paragraphs 1 and 2 (b) of this Article. 

4. There shall be no evasion of this Code by reclassification of the 
functions of workers. A worker shall not be included in one of the 



294 

above exceptions unless the identical functions which he performs 
were identically classified on June 16, 1933. 

6. For the purpose of this section, the first 26 weeks' period for 
each employee in the employment of any member of the industry at 
the effective date hereof shall begin with such date^ The first 26 
weeks' period for any employee hereafter employed shall begin with 
the date of employment with such employer. 

6. The provisions for maximum hours set out in this section estab- 
lish a maximum number of hours of labor per week for each em- 
Eloyee so that under no circumstances shall any employee knowingly 
e employed or permitted to work for one or more employers in the 
i industry in the aggregate in excess of the prescribed number of 
I hours. 

I Article VII — Statistics 

f 

j The leather industry, through the Tanners' Council of America, 
iNo. 41 Park Kow, New York, N.Y., shall collect and compile all 
' reports required by the National Industrial Eecovery Act. Every 

member of the industry shall furnish such reports as are required 

pursuant to the provisions thereof. 

Article VIII — Statutory Provisions 

All employers in the industry shall comply with the following 
provisions of the National Industrial Kecovery Act : 

1. That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interferences, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives, or in 
self-organization, or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection ; 

2. That no employee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union, or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and 

3. That employers shall comply with the maximum hours of labor ; 
minimum rates of pay, and other conditions of employment apj^roved 
or prescribed by the President. 

Article IX — Price Adjustments 

Where the costs of executing contracts entered into by the Leather 
Industry are increased by the application of the provisions of the 
code it is equitable and promotive of the purpose of the National 
Industrial Recovery Act that appropriate adjustments of such con- 
tracts to reflect such increased costs be arrived at by mutual agree- 
ment, arbitral proceedings, or otherwise. 

Article X — Planning Committees 

For the purpose of carrying into effect the policies set forth in 
the National Industrial Recovery Act, the Board of Directors of 



295 

the Tanners' Council of America from time to time, subject to the 
approval of the National Recovery Administration, shall classify- 
all members of the industry into divisions, each of which shall be 
truly representative of its branch of the leather industry. One rep- 
resentative from each division shall be elected, according to its own 
rules, to a General Planning Committee, which shall constitute the 
coordinating agency for the divisions of the industry. 

The General Planning Committee so organized is hereby con- 
stituted the agency for cooperating with the Administration or the 
Administrator as an administrative, planning, and fair-practice 
agency for the Leather Industry. Such agency may from time to 
time present to the Administrator recommendations based on con- 
ditions in the industry as they may develop, which will tend to ef- 
fectuate the operations of the provisions of this code and the policy 
of the National Industrial Eecovery Act. The President may 
appoint three members for the General Planning Committee, who 
shall not be entitled to vote. The Chairman of the Board of 
Directors of the Tanners' Council of America shall preside over this 
Committee without vote. 

No decisions of the General Planning Committee shall be binding 
unless concurred in by two thirds of the members thereof entitled to 
vote, and by representatives of divisions employing two thirds of 
the total employees of the industry as recorded by the Tanners' 
Council of America for the last six months for which figures are 
available. 

Each division of the leather industry shall elect its own separate 
and distinct Divisional Planning Committee, and each such 
Divisional Planning Committee shall present in writing recommen- 
dation or reconunendations to every member of the General Plan- 
ning Committee twenty days before such recommendation or recom- 
mendations become effective. If the General Planning Committee 
fail to disapprove of such recommendation or recommendations, they 
shall be deemed approved. If the General Planning Committee dis- 
approve thereof, then and in that event the Divisional Planning Com- 
mittee shall be entitled to present its recommendation or recommen- 
dations to the Administrator for his approval. Such division may 
of its own election carry out the recommendation or recommendations 
of its planning committee, all to the end that each division shall be 
independent and self-governing in all problems relating exclusively 
to such division. Reconmnendations put into effect under this para- 
graph and the operation thereof shall be subject to the approval of 
the Administrator. 

Article XI — Importations 

In accordance with Section 3 of the National Industrial Recovery 
Act, the Leather Industry through the General Planning Committee, 
in due course and from time to time as occasion may arise, may sub- 
mit complaints to the President of the United States with reference 
to importations of leather in competition with the domestic product, 
for such steps under the National Industrial Recovery Act to be 
taken by the Administration, and in order that such importations 
may not defeat the purposes of the National Industrial Recovery 



296 

Act and the provisions of this code in the furtherance thereof. The 
General Planning Committee, when any Divisional Planning Com- 
mittee may have asked for action under Section 3 of the Act referred 
to, shall follow the rules agreed to in this code. 

Article XII — Monopolies 

No provision in this code shall be interpreted or applied in such 
a manner as to: (1) Promote monopolies; (2) Permit or encourage 
unfair competition; (3) Eliminate, oppress, or discriminate against 
small enterprises. 

Abticle XIII — Designs 

No member of the industry shall imitate or simulate within one 
year from date of registration, any new embossed or decorative de- 
sign or pattern originated by any other member of the industry and 
registered with the Tanners' Council of America, or its designated 
agency. 

Article XIV — Trade Terms 

All invoices covering domestic sales in the Leather Industry shall 
be due and payable in 30 days. At seller's option payment may be 
made on the 15th day of any calendar month for all invoices of the 
preceding calendar month. No datings shall be allowed. Discount 
shall be for cash payment only and shall not exceed 2%. All bills 
are net after 30 days and interest shall be added at the rate of 6 
percent per annum after due date. 

Forward orders shall be booked only after purchaser has signed 
a uniform sales contract approved by the General Planning Com- 
mittee subject to approval of the Administrator. 

Article XV — Amendments, Modifications, Teriminations, and 

Voting 

This code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of the National Industrial Recovery Act, to cancel or modify any 
order, approval, license, rule, or regulations issued pursuant to the 
provisions of said act, and specifically to the right of the President 
to modify his approval of this code or any conditions imposed by 
him upon his approval thereof. 

Such of the provisions of this code as are not required to be 
included therein by the National Industrial Recovery Act may with 
the approval of the President, if the approval of the President is 
required, be modified or eliminated as changes in circumstances or 
experience may indicate by a three-fourths vote of the members of 
the Leather Industry at a meeting to be called upon ten days' notice 
by the Tanners' Council of America. Voting shall be on the basis 
of the average number of employees during the previous six months 
as shown by the records of the Tanners' Council of America. Vot- 
ing may be by proxy. i 



297 

It is contemplated that from time to time supplementary provi- 
sions to this code or additional codes will be submitted for the ap- 
proval of the President to prevent unfair competition in prices and 
other unfair and destructive competitive practices and to effectuate 
the other purposes and policies of Title I of the National Industrial 
Recovery Act consistent with the provisions hereof. 

This code shall continue in effect for the period provided in 
the National Industrial Recovery Act, unless sooner terminated in 
accordance with the law in such case made and provided. 

Approved Code No. 21. 
Registry No. 930/1/01. 

o 



Approved Code No. 22 
CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE LABORATORY INDUSTRY 

As Approved on September 7, 1933 

BY 

PRESIDENT ROOSEVELT 



ExecutiveOrder 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I, of the National Indus- 
trial Recovery Act, approved June 16, 1933, for my approval of a 
Code of Fair Competition for the Motion Picture Laboratory In- 
dustry, and a hearing having been held thereon and the Adminis- 
trator having rendered his report containing an analysis of the said 
Code of Fair Competition together with his recommendations and 
findings with respect thereto, and the Administrator having found 
that the said Code of Fair Competition complies in all respects with 
the pertinent provisions of Title I of said Act and that the require- 
ments of clauses (1) and (2) of subsection (a) of Section 3 of the 
said Act have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator, and do order that the said Code of 
Fair Competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White House, 

September 7, 1933. 

(299) 

29842 296-142 34 



September 5, 1933. 
To THE President. 

INTRODTJCTION 

This is a report of the Hearing on the Code of Fair Competition 
for the Motion Picture Laboratory Industry in the United States^ 
conducted in the Small Auditorium of the United States Chamber 
of Commerce Building in Washington, D.C., on August 31, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The Motion Picture Laboratory Industry embraces those estab- 
lishments in which motion picture film is developed, printed, or 
otherwise processed. There are approximately 38 firms in the 
United States rendering full laboratory developing service, and an 
undetermined number of other firms in the country rendering oc- 
casional motion picture laboratory service. Out of the 1932 total 
volume of approximately one billion feet of film developed in the 
motion picture laboratories, members of the Motion Picture Labora- 
tories Association of America, Inc., developed approximately 90 
percent thereof. 

Approximately 3,500 laboratory workers are employed throughout 
the United States in motion picture laboratories. 

For the first time in the history of the industry, classification of 
workers, minimum rates of pay, and maximum number of hours of 
employment have been provided. 

The motion picture laboratory workers have been paid at an 
hourly rate. Under the Code, any regular laboratory workers in- 
cluding apprentices are guaranteed a minimum wage of $15.00 per 
week no matter how few hours they may actually work during any 
week. This provision, of course, represents a radical departure froiii 
the method in vogue for payment of regular workers heretofore. 

The Code further provides that in the case of employees receiving 
less than $35.00 per week for a forty-four hour week heretofore such 
employees under the Code will receive the same wage as heretofore 
for a forty-hour week. 

The percentage of increase of wages under the Code will approxi- 
mate from 10% to 12% above the current rate of wages, and the 
increase in employment under the Code is estimated at approximately 
15% above the ])resent number of laboratory workers employed. 

The Code for this industry represents an approximate advance of 
$6,000.00 per week uj)on the pay rolls of the industry. 

(300) 



i 

301 

THE CODE 

The Code of Fair Competition as revised and presented by this 
Industry has regulated the maximum number of working hours and 
minimum wages for all employees employed in such Industry, and 
its fair practice provisions have been especially designed to guard 
fair competition. 

I find that : 

(a) The Code as revised complies in all respects with the pertinent 
provisions of Title I of the Act including, without limitations, sub- 
section (a) of Section 7 and subsection (b) of Section 10 thereof; 
and that 

(b) The Motion Picture Laboratories Association of America, 
Inc., imposes no inequitable restrictions upon admission to member- 
ship therein and is truly representative of the motion-picture lab- 
oratory industry; and that 

(c) The Code is not designed to eliminate or oppress small enter- 
prises and will not operate to discriminate against them, and will 
tend to effectuate the policy of Title I of the National Industrial 
Recovery Act. 

Accordingly, I adopt the report of the Deputy Administrator and 
I hereby recommend the approval of the Code of Fair Competition 
for the Motion Picture Laboratory Industry. 
Respectfully submitted. 

Hugh S. Johnson, 

A dminis trator. 



CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE LABORATORY INDUSTRY 

Article I — Purposes 

1. General Purpose. — This Code of Fair Competition is adopted 
pursuant to the National Industrial Recovery Act and for the pur- 
pose of carrying out the aims set forth in Title I, Section 1, of the- 
Act insofar as they are applicable to the Motion-Picture Laboratory- 
Industry. 

2. Purposes Excluded. — This Code is not designed to promote- 
monopolies and shall not be availed of for that purpose. It is not 
designed to eliminate or oppress small enterprises and it shall not 
be operated to discriminate against them. 

Article II — Definitions 

1. The term " laboratory " as used herein shall include all estab- 
lishments in which manufactured motion-picture film is developed^ 
printed, or otherwise processed. 

2. The term " person " as used herein shall include individuals, 
partnerships, associations, trusts, joint-stock companies, and corpo- 
rations, without limitation. 

3. The term " employer " as used herein shall include any person,, 
without limitation, employing individuals in the business of the 
operation of a motion-picture laboratory. 

4. The term '' employee " as used herein shall include any indi- 
vidual engaged in office or other work of an employer as defined' 
herein, or in developing, printing, or otherwise processing motion- 
picture film. 

5. The term " President " as used herein shall mean the President 
of the United States of America. 

6. The initials " X.I.R.A." as used herein shall mean the National 
Industrial Recovery Act. 

7. The term '"Association " as used herein shall mean the Motion 
Picture Laboratories Association of America. Inc. The term> 
"Board" shall mean the Board of Directors of the Association. 

Article III — Administration 

1. Administrative Recovery Coinmittee. — A committee to be- 
known as the Administrative Recovery Committee and hereinafter- 
referred to as the Recovery Committee, comprising the Board and 
not more than three representatives of the Government, to be ap- 
pointed by the President, or the National Recovery Administrator, 
shall apply this Code. As and when any questions involving labor 

(302) 



303 

directly or indirectly are to be considered by the Recovery Com- 
mittee, two representatives of the emploj^ees, chosen by a fair method 
of selection to be approved by the National Eecovery Administrator, 
shall sit with and become for such purposes members of the Recovery 
Committee. 

2. The Recovery Committee shall cooperate with the Adminis- 
trator in making investigations as to the functioning or observ- 
ances of any provisions of the Code, in its own instance or on the 
rejjort of any person, and shall report to the Administrator on any 
such matters. It may go directly to original sources for informa- 
tion strictly pertinent to the observances of the Code, all of which 
shall ]»e subject to the approval of the Administrator. 

3. The members of the Recovery Committee shall constitute a 
second committee, to be known as the Arbitration Board. In case 
any controversy arises between two or more emploj^er laboratories on 
any issues, upon consent of the employer laboratories all facts shall 
be made available to the Arbitration Board, which shall act as Arbi- 
trator, and ujDon being fully advised in the matter, in accordance 
with rules ajDproved by the Administrator, shall render its decision. 
The Arbitration Board's decision shall be binding upon the labora- 
tories involved, and each shall abide by same. 

4. In order that the President may be informed of the extent of 
observance of the provisions of this Code and of the extent to wdiich 
the declared jDolicy of the National Industrial Recovery Act as stated 
herein is being effectuated in the motion-picture laboratories industry, 
persons subject to the jurisdiction of this Code shall upon request 
make periodically to the Recover}^ Committee such reports on wages, 
hours of lal)or, conditions of employment, number of employees, and 
other data pertinent to the purposes of this Code as may be required, 
and shall pay as a code fee, if the fees and dues of the Association 
be insufficient, upon his acceptance of the benefits of this Code, his 
proportionate share of the amounts necessary to pay the cost of 
assembling, analysis, and publication of such reports and data. The 
first report hereunder shall be made to the National Recovery Admin- 
istrator Avithin sixty days after the approval of this Code by the 
President. 

5. Investigations. — If any employer laboratory declines to permit 
the personnel of the Recovery Committee, acting under this Article, 
to examine its books, records, or other sources of information, the 
Committee may suggest the names of not less than three firms of 
certified public accountants of reputable standing in the motion- 
picture field, and if the employer laboratory shall indicate a choice 
among the three firms, the Recover}^ Committee shall employ the firm 
designated by the employer laboratory in making the investigation 
(jf that laboratory. 

Article IV — Employment 

1. Age of Employees. — No employer shall employ an}' employee 
under the age of 16 years. Provided, however, that where a State 
law provides a higher minimum age, no person below the age speci- 
fied by such State law shall be employed within that State. 



304 

2. Hours of Labor. — 1. Xo employer shall work any employee in 
excess of eight hours in any one clay or in excess of 40 hours in 
any one week, except in an emergency, and then not in excess of 
60 hours, and under no circumstances in excess of 480 hours in a 
twelve-week period. 

2. An emergency is defined to be a condition resulting from an 
abnormal or irregular delivery to the laboratory of newsreel or 
studio negative accompanied by an order for newsreel prints or 
dailies or rush prints ; also, the necessity for repair and maintenance. 
When two or more shifts are regularly employed, emergency work 
shall be equally distributed between the shifts. 

3. The hours of labor above provided for in subdivision 1 of 
this Section, and tlie additional remuneration for overtime as here- 
inafter provided for certain employees, shall not apply to execu- 
tives, foremen, or assistant foremen who are not mechanical or 
operating employees. 

3. Rates of Pay. — (A) In laboratories employing 20 or less in 
number of mechanical laboratory workers, employers shall pay : 

(a) Mechanical workers, except apprentices, a minimum wage of 
50 cents per hour with a guarantee of payment to each such regular 
worker of not less than $15.00 per week. 

(b) Apprentices a minimum wage of 40 cents per hour with a 
guarantee of payment to each such regular apprentice of not less 
than $15.00 per week. 

(c) All other regular employees not less than $15.00 per week in 
any city of over 500,000 population or in the immediate trade area 
of such city; nor less than $14.50 per week in any city of between 
250,000 and 500,000 population, or in the immediate trade area of 
such city ; nor less than $14.00 ]3er week in any city of between 2,500 
and 250,000 population, or in the innnediate trade area of such city; 
and in towns of less than 2.500 population, not less than $12.00 
per week. 

(d) Time and one half wages to any employee for the time during 
which he may work in excess of eight hours in any one day, except 
to employees engaged in the processing of newsreels, who shall 
receive straight time for such overtime. 

(e) AH employees being paid at a rate of less than $35.00 per 
week as of July 1, 1933. no lesser rate of wage based on 40 hours of 
work ])er week than was paid such respective employees for 44 
hours of work per week as of July 1. 1933: and any readjustment of 
wages necessitated by compliance with this Code shall be on an 
equitable basis. 

(B) In laboratories employing more than 20 in number of mechan- 
ical laboratory workers, employers shall pay : 

(a) Mechanical workers classified as follows at a rate on the 
basis of the following minimum weekly wage scales for 40 hours 
of work per week : 



I 305 

De\ eloping Departments: Per week 

Macliine Operators $30. 00 

Chemical Mixers 35. 00 

Nearative Cutting Department : 

Negative Cutters 33. 00 

Negative Joiners 25. 00 

Timing Department : 

Eye Timers 80. 00 

Assistant Timers 45. 00 

Test Macliine Timers 50.00 

Printing Department : 

Printers — all classes 25. 00 

Negative Cleaners 25. 00 

Raw Stock Clerk '_. 25. 00 

Negative Vault Tender 30. 00 

Assembly Department : 

Positive Joiners 21. 25 

Examiners 21. 75 

Waxers 20.00 

Inspection Department: Inspectors 25.00 

Title Room: Title Cameramen 30.00 

Shipping Department : Shipping Clerk 25.00 

^Maintenance (Mechanical): Mechanics and Electricians 30.00 

Apjiventices : All Departments 20.00 

Helpers: All Departments 20.00 

"vvith a guarantee of payment to each regular worker or apprentice 
of not less than $15.00 per week. 

(b) All other employees not less than $15.00 per week in any 
city of over 500,000 population or in the immediate trade area of 
such city; nor less than $14.50 per week in any city of between 
250,000 and 500,000 population, or in the immediate trade area of 
such city; nor less than $14.00 per week in any city of between 
2,500 and 250,000 population, or in the immediate trade area of such 
city ; and in towns of less than 2,500 population, not less than $12.00 
per week. 

Provided, however, that if any of the foregoing employees work 
more than eight hours in any one day, then such employees shall 
be paid time and one half for the time during which such employees 
work in excess of eight hours, except employees engaged in the 
processing of newsreels, who shall receive straight time for such 
overtime. 

(b) Each foreman in departments employing ten employees or 
less shall be paid 10 percent over the average salaries paid in those 
respective departments; and each foreman in departments employ- 
ing more than ten employees shall be paid 20 percent over the 
average salaries paid in those respective departments. 

(c) All employees being paid at a rate of less than $35.00 per week 
as of July 1. 1933, shall be paid no lesser rate of wage based on 40 
hours of work per week than was paid such respective employees for 
44 hours of work per week as of July 1, 1933 : and any readjustment 
of wages necessitated by compliance with this Code shall be on an 
equitable basis. 

4. App/'entfces. — 1. No employer shall employ any employee as 
an apprentice for more than 12 months, and no employer shall at 
any time employ apprentices of a number greater than 10 percent 
of the total number of employees. 



306 

5. Conditions of Employment. — (a) Employees shall have the 
right to organize and bargain collectively through representatives 
of their own choosing, and shall be free from the interference, re- 
straint, or coercion of employers of labor, or their agents, in the 
designation of such representatives or in self-organization or in 
other concerted activities for the purpose of collective bargaining or 
other mutual aid or jDrotection. 

(b) No employee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

(c) Employers shall compW with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

Article V — Industry Regulations 

1. Selling Below Cost Not Permitted. — (a) No laboratory shall 
sell its products or services below the cost of such products or serv- 
ices. For this purpose cost is defined as the cost of direct labor 
plus the cost of materials plus an adequate amount of overhead, 
including an amount for the use of any plant facilities employed, 
as determined by cost accounting methods recognized in the industry 
and approved by the Recovery Committee. In computing cost of 
materials the cost of raw stock shall not be lower than the standard 
market price at which raw stock is currently being offered to labora- 
tories. As and when any standard cost accounting method is recom- 
mended by the Recovery Committee, it shall be subject to the advance 
approval of the National Recovery Administrator. 

(b) The jDrovisions of the foregoing paragraph shall not apply 
with respect to products or services sold in the performance of a 
bona fide contract in writino- executed and delivered prior to August 
7, 1933. 

2. Arbitration of Existiyig Contracts. — 1. Where the costs to the 
laboratory of executing contracts entered into in the motion-picture 
industry are increased by the application of the provisions of the 
N.I.R.A. or the Code, it is equitable and promotive of the purposes 
of the N.I.R.A. that appropriate adjustments of such contracts to 
reflect such increased costs be arrived at by arbitral proceedings or 
otherwise and the members of the Board shall constitute themselves 
a Committee to assist in effectuating such adjustments. 

3. False Records. — 1. No laboratory shall willfully maintain an 
incorrect, improper, or false method of determining cost. 

4. Unfojir Trade Prae-tices. — 1. The following are declared to lie 
unfair trade practices in the industry : 

(a) Any willful attempt to induce a breach of existing bona fide 
contract, or to prevent the performance of any contractual dut}^ or 
service under any bona fide contract. 

(b) To effect or conceal price discrimination by the ]:)ayment or 
allowance of secret rebates, refunds, credits, or unearned discounts, 
whether in the form of money or gifts, the acceptance of securities 
at more than the true market value, the extending of special privi- 
leges not usually extended in the industry. 



P 307 

(c) Commercial bribery, giviiig gratuities, favors, or services in 
any form directly or indirectl}^ to customers or customers' employees 
or obtaining sales by -giving commissions or rewards in any form to 
employees of customers or otherwise inducing the placing of orders 
through lavish entertainment or indirect gifts or other forms of 
commercial bribery. 

(d) Any departure from original agreements with respect to terms 
of discounts for cash or time of payment which results in discrimi- 
nation between purchasers of the same class of products or services 
and under the same condition. 

(e) Substitution of material differing in any respect from the 
material ordered, without obtaining the approval of the customer, or 
the use of raw material including raw stock in any manufacturing 
processes inferior in quality to the raw material specified in an order, 
or, if not specified, inferior to the quality customarily used for 
similar orders. 

(f ) Attacking a competitor as to his financial standing or personal 
integrity or his ability to serve the trade. 

(g) Predating contracts or willfully misrepresenting the date of 
a contract, 

(h) Misrepresentation as to work or service or quality of work or 
service or materials, or misleading advertising. 

(i) The giving of any bribe, gift, favor, or service to any employee 
of a customer or competitor in order to obtain information about a 
competitor's condition of business. 

(j) The accepting of any rebate, direct or indirect, from an 
employee. 

(k) Influencing any employee to dispose of his wages in any 
manner whatsoever. 

(1) To store producers' old film without making a reasonable 
charge therefor. 

(m) To furnish the use of cutting rooms without making a reason- 
able charge therefor. 

(n) To render commercial projection service without making a 
reasonable charge therefor. 

(o) To take an unauthorized duplicating print from a customer's 
negative or to make any other unauthorized copies, either negative 
or positive of a customer's negative or print. 

Article VI — Modification 

1. By the President. — This Code recognizes the right of the Presi- 
dent from time to time to cancel or modify any order, approval, 
license, rule, or regulation issued under Title I of the N.I.R.A,, and 
specifically to the right of the President to cancel or modify his 
approval of this Code or any conditions imposed by him upon his 
approval thereof. 

2. By the Association. — The provisions of this Code, other than 
the mandatory provisions under the N.I.R.A., may be modified or 
amended by the concurring vote of at least two thirds of the members 
of the Association at a meeting called for such purpose, provided that 



308 

notice of submission of the proposed modification, or amendment, 
has been given in the notice of meeting and provided further, that 
any modification or amendment adopted by .the Association shall 
not become binding or effective unless and until approved by the 
President. 

Article VII — General 

1. Producer's Laboratories Excepted. — Any laboratorj^ owned, 
operated, or controlled by a motion-picture producing firm, whether 
an individual, a partnership, a corporation, or otherwise, without 
limitation, is excepted from the operation of this Code, so long as it 
does not compete with any laboratory subject to this Code in labora- 
tory products or services, other than on pictures produced by it. 

2. Me')iibership. — (a) All members of the Association affected 
thereby shall, as a condition of membership, subscribe to this Code. 

(b) Association membership shall remain open at all times to any 
motion-picture laboratory under no restrictions, except as to initia- 
tion fee and payment of dues. 

3. Application of the Code. — If au}^ employer in the Motion Pic- 
ture Laboratory Industry is also an employer of labor in any other 
industry, the provisions of this Code shall apply to and affect only 
that part of the business of such employer which is included in the 
laboratory industry. 

4. Effective Date. — This Code becomes effective on the tenth day 
following its approval by the President. 

5. Termination. — This Code, unless otherwise terminated, shall ex- 
pire on the same date as the N.I.R.A. 

6. Code Violation. — Violation of any provision of this Code shall 
be deemed unfair competition. 



Approved Code No. 22. 
Registry No. 1748-1-11. 



O 






Approved Code No. 23 
CODE OF FAIR COMPETITION 

FOR THE 

UNDERWEAR AND ALLIED PRODUCTS 

MANUFACTURING INDUSTRY 

As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Underwear and Allied Products Manu- 
facturing Industry, and hearings having been held thereon and the 
Administrator having rendered his report containing an analysis of 
the said Code of Fair Competition together with his recommenda- 
tions and findings with respect thereto, and the Administrator having 
found that the said Code of Fair Competition complies in all respects 
with the pertinent provisions of Title I of said act and that the 
requirements of clauses (1) and (2) of subsection (a) of Section 3 
of the said act have been met. 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations, 
and findings of the Administrator and do order that tlie said Code 
of Fair Competition be and it is hereby approved, subject to the 
following condition : 

(1) That all manufacturers included within the provisions of 
Part I, Section 1 (c) of the Code be granted a stay of fourteen (14) 
days after the effective date thereof, during which period they may 
show cause to the Administrator why they should not be included 
under the provisions of such Section. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White House, 

Septemler 18, 1933. 

29180° 296=59 34 (309) 



National Recovery Administration 

To the President.' 

INTRODUCTION 

This is a report of the hearing on the Code of Fair Practice for the 
Underwear and Allied Products Industry in the United States, con- 
ducted in Washington on August 10th and 11th, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

In the conduct of the hearing every person who had filed a request 
for an appearance was freely heard in public, and all statutory and 
regulatory requirements were complied with. 

The code which is attached was presented by duly qualified and 
authorized representatives of the industry, and complies with the 
statutory requirements, as representing fully seventy-five percent of 
the knitting and sewing machinery in the Underwear and Allied 
Products Industry. 

I. Industry Now Operating Under Executive Order 

" Pursuant to the authority vested in me by Title I of the National 
Industrial Recovery Act, approved June 16, 1933, and pending action 
upon a Code of Fair Competition to be presented by the Underwear 
and Allied Products Industry, 

" I agree with the Industry Committee, representing the manu- 
facturers of knitted, woven and all other types of underwear and/or 
allied products, including garments made in underwear mills from 
fabric made on underwear machines and including any and aU 
fabrics sold and/or used for underwear purposes made on flat or 
warp or circular knitting machines, whether as a final process or 
as a part of a larger or further process, pending the approval of a 
code of fair competition for the Industry, that they shall be bound, 
beginning Juh^ 24, 1933, by the provisions of the Cotton Textile 
Industry Code, as set forth in their letter of July 19, 1933, signed 
by the Members of the Industry Committee, offering this agreement 
to the President of the United States, pursuant to Section 4 of the 
National Recovery Act, and addressed to General Hugh S. Johnson, 
Administrator, agreement is subject to cancellation at any time 
without notice. 

Franklin D. Roosevelt." 

July 21, 1933. 

(310) 



* 



) 



311 

The Underwear Industry has been operating under the above 
Executive Order since July 21, 1933. The definitions as contained 
in the Executive Order have been changed in the code herewith 
presented. 

The underwear manufacturers included under the Executive Or- 
der but excluded from the code are preparing their codes for presen- 
tation to the Administration before September 1st. 

It is understood that upon the effective date of the Code of Fair 
Competition for the Underwear and Allied Products Manufacturing 
Industry as herewith presented, this code should supersede the pro- 
visions of the above Executive Order for all those included in the 
definitions of said code. 

II — Definitions of the Industry 

The Code of Fair Competition originally presented by the Under- 
wear Institute in behalf of the Underwear and Allied Products 
Manufacturing Industry included the manufacturers of all types of 
underwear. 

It became evident during the Hearing that the "underwear industry 
in its entirety could not be included in the definitions of the Code 
of Fair Competition presented by the Underwear Institute. 

Accordingly, the branche,s oi the industry listed below were ex- 
cluded, with the approval of all present at the Public Hearing, 
from being bound under the code herewith presented : 

1. Lingerie undergarments manufactured in the Philippines or 
Puerto Rico from woven fabrics. 

The type of garment manufactured in the above-mentioned locali- 
ties is of such a type that it is not in direct competition with similar 
products manufactured in the United States. The labor conditions 
in these localities are not comparable to the labor conditions in the 
United States. 

2. Infants' and Children's underwear and leggings, other than 
knitted cotton, and woven cotton so-called " athletic type." 

As the above-mentioned division of the underwear industry is so 
closely allied with the manufacture of other children's garments, it 
is essential that they be included under a code of fair competition for 
the infants' and children's wear industry. 

In Part I, Par. 1, Subpar. i, provisions are made so that when a 
code of fair competition for the infants' and children's wear industry 
is adopted that this type of underwear manufacture shall be included 
under the terms and provisions of such code to be adopted. 

8. Manufacture of fabrics sold or used mainly for underwear pur- 
poses made on circular knitting machines. 

This type of fabric which is largely made of rayon is included 
in the code of fair competition for the underwear and allied products 
industry herewith presented. 

It is recommended that a stay of fourteen days be granted to all 
manufacturers that may be defined under Part I, Par. 1, Subpar. c, 
for the purpose of determining whether or not this type of manu- 
facturer should be included as a part of the Underwear and Allied 
Products Industry. 



312 

III — Labor Provisions 

The labor provisions in this code are substantially the same as 
the labor provisions in the code for the Cotton Textile Industry. 

It is clearly evident that the labor conditions should be substan- 
tially the same as many of the underwear manufacturers spin their 
own yarn on the same premises that these yarns are knitted into or 
converted into underwear either partially or wholly finished. 

To establish any difference in the minimum wage or the working 
hours for employees in the manufacture of underwear would cause 
difficulty in the labor conditions. 

It is therefore recommended that these provisions be made as 
outlined in Part II of the code. 

IV — Machine Hours 

Sufficient evidence was submitted substantiating the adoption of 
one 40-hour shift for sewing machines, and two 40-hour shifts for 
knitting machines. 

The only objection filed was made by Mr. William Hilleary, 
representing an underwear establishment located in a small town. 
The limitation of machine hours would necessitate unemployment 
in this instance, but the employment situation as a whole will not be 
affected by any limitation of machine hours. 

V — Registration or Machinery 

The code as approved by the industry at the close of the Hearing 
contained the following provision : 

"■ On and after the effective date all persons engaged or engaging 
in the Industry shall register with the Industry Committee each unit 
of their productive machinery. Upon recommendation by the In- 
dustry Committee the Administrator may require that prior to the 
installation of additional productive machinery by persons engaged 
or engaging in the Industry, except for the replacement of a similar 
number of existing machines, such persons shall secure from the 
Administrator a certificate that such installation will be consistent 
with effectuating the policy of the National Industrial Recovery 
Act during the period of the emergency, and the Administrator 
may grant or withhold such certificate." 

With due thought and consideration I have changed this provision 
to read: 

" On and after the effective date all persons engaged or 
engaging in the Industry shall register with the Industry 
Committee each unit of their productive machinery." 
for the reason that I firmly believe such restrictive measures should 
have more careful consideration before becoming a j^rovision of a 
Code of Fair Competition. 

VI — Administration 

The provisions for administration of this code are capable of pro- 
viding the Administration and the Underwear and Allied Products 
Industry with sufficient data to make recommendations for the elim- 



i 



813 



ination of certain provisions in the code as herewith presented and/or 
the addition of further provisions to this code which would be bene- 
ficial to the industry as a whole. 

VII — Unfair Trade Practice 

The provisions for unfair trade practices contained in this code 
should, to a great degree, correct certain evils that have existed and 
that have developed in the industry. 

It is recommended that a careful study be made by the adminis- 
trative body of the code as to the immediate results of the fair prac- 
tice provisions of the code. 

Provisions for furthering the adoption of standards in the under- 
wear industry will go a long way toward correcting some of the 
major evils now existing. 

4: H: * H: « 4! * 

In this application for the approval of this code, it is stated that 
the applicants confidently believed their membership to include more 
than 75% of the productive capacity of the entire underwear field, 
as follows: 

" The following is a tabulation of the estimate of number of mills 
in each of the Groups which are covered by the " Code of Fair Com- 
petition for the Underwear and Allied Products Manufacturing In- 
dustry " and the number of such mills, in each group, which are mem- 
bers of the Underwear Institute : 



Estimated 

Number of 

Mills 



Number of 
Members 



Percent 
Production 



Knit Retail Group 

Knit Jobbing Group 

Silk and Rayon Group 

Woven Group --- 

Sweater Group 

Warp Knit Fabric Group 

Knit Elastic Group - 

Knit Work Glove Fabric Group-.. 

Beef Tubing and Stockinette Group 

Knit Cotton Wash Cloths and Novelties Group 



22 

167 

227 

66 

36 

32 

27 

6 

7 

2 



22 

135 

68 

60 

33 

26 

20 

6 

4 

2 



65.23 
84.36 
80 



I find that : 

(a) the code complies in all respects with the pertinent provi- 
sions of Title I of the Act, including, without limitation, subsection 
(a) of Section Y, ancl subsection (b)-of Section 10 thereof; and that 

(b) the Underwear Institute imposes no inequitable restrictions 
on admission to membership therein and is truly representative of 
the Underwear and Allied Products Industry; and that 

(c) the code is not designed to promote monopolies or to elimi- 
nate or oppress small enterprises and will not operate to discriminate 
against them, and will tend to effectuate the policy of Title I of the 
National Industrial Recovery Act. 

Further, that the provisions of the code will result in a substan- 
tial increase in wages, and that there will be employed in the 
industry a greater number of persons than to be found in any peak 
period of operation. 



314 

The code provides for wage scales and maximum hours of work 
for all employees as well as those engaged in process operations. 

VIII — Conclusion 

For the first time in the history of the Underwear Industry the 
majority of concerns in the manufacture of underwear and allied 
products combined and formed an association known as the Under- 
wear Institute. 

In the formation of this Institute it became evident at the outset 
that a certain branch of the underwear industry was unwilling to 
become a part or be known as a part of the underwear industry. 
This particular branch is known as the manufacturers of circular 
knit rayon fabrics. They were not present at the Hearing and pre- 
vious to the Hearing did not attend any of the meetings held by 
the underwear committee in formulating their code. It was not 
until the close of the Hearing that a brief was filed by the majority 
of manufacturers of the circular knit rayon fabrics claiming ex- 
emption from the provisions of the underwear code. Their conten- 
tion was that they are a separate industry. 

To facilitate the passage of the code they agreed to acknowledge 
the code, provided they be granted a stay exempting them from the 
provisions of the code for a period of 14 days in which time they 
should show cause why they should be classed as a separate industry. 

The only other dissenting factor at the Hearing was a representa- 
tive of a small mill claiming the limitation of machine hours would 
force him to dismiss one third of his workers, as he does not have 
sufficient capital to add more machines. As the majority of con- 
cerns in the underwear industry requested the limitation of machine 
hours, it is deemed advisable that this limitation remain in the code 
with a possibility that in certain instances they might request exemp- 
tion from certain provisions by submitting their plea for exemption 
to the underwear industry committee. 

The code as originally presented at the Hearing was changed con- 
siderably before the termination of the Hearing, and the proponents 
of the original code readily accepted the changes. 

All divergencies, except as stated, have been harmonized in the 
provisions as presented. 

Accordingly, I hereby recommend the approval of the Code of 
Fair Competition for the Underwear and Allied Products Manu- 
facturing Industry. 
Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

UNDERWEAR AND ALLIED PRODUCTS MANUFAC- 
TURING INDUSTRY 



To effectuate the policy of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Underwear and Allied Products Manu- 
facturing Industry. 

Part I — Definitions 

1. The term " Underwear and Allied Products Manufacturing In- 
dustry " (hereinafter referred to as the Industry) as used herein is 
defined to mean the manufacture of — 

(a) Knitted, woven, and all other types of underwear manufac- 
tured from all tj\)es of materials, with the exception of women's 
undergarments (other than so-called athletic type), pajamas, and 
negligees made from woven fabrics of silk, rayon, cotton, or flannel- 
ette, or of any combination thereof, and also excepting women's, 
children's, and infant's lingerie undergarments manufactured in the 
Philippines or Puerto Rico from woven fabrics ; 

(b) Garments made in underwear mills from fabric made on 
underwear machines, excepting, however, the cutting and fabricat- 
ing of .shirts other than undershirts, provided, however, that the 
manufacture of fleece-lined sweat shirts and other garments of like 
nature are not included in this exception ; 

(c) Any and all fabrics sold or used mainly for underwear pur- 
poses made on flat or warp or circular knitting machines ; 

(d) Knitted elastic fabrics; 

(e) Knitted tubing for meat bagging; 

(f) Knitted work-glove fabrics; 

(g) Knitted fabrics made for leggings; and 
(h) Knitted wash cloths : 

(i) Provided, however, That any person manufacturing infants' 
and children's underwear and leggings, other than knitted cotton and 
woven cotton, so-called, " athletic type " underwear, may elect to 
operate under the provisions of such Code of Fair Competition for 
the Infants' and Children's Wear Industry as may hereafter be ap- 
proved by the President of the United States ; pending the approval 
of such Code of Fair Competition for the Infants' and Children's 
Wear Industry such person,s operating under the President's Reem- 
plo3nment Agreement may continue to operate under said Agreement, 
and such persons^not operating under the President's Reemployment 
Agreement shall operate under the provisions of this Code. 

2. The term " Employers " as used herein shall include all person^ 
who employ labor in the conduct of any branch of the Industry. 

3. The term " Employees " as used herein shall include all persons 
employed in the conduct of any ])ranch of the Industry. 

(315) 



816 

4. The term " Productive Machinery " as used herein is defined 
to mean knitting machines and/or sewing machines used in the 
Industry. 

5. The term " Knitting Machines " as used herein sliall include 
all types thereof which have a part in the process of the manufac- 
ture of underwear and allied products as defined in paragraph 1 
above. 

6. The term " Sewing Machine " as used herein shall include all 
types of sewing machines used in the manufacture of products as 
defined in paragraph 1 above. 

7. The term Effective Date " as used herein is defined to be the 
second Monday after approval by the President of the United States 
of this Code. 

8. The term " Persons " as used herein shall include natural per- 
Bons, partnerships, associations, corporations, and trusts, including 
trustees in bankruptcy and receivers. 

9. The term " Mills " as used herein shall include all places where 
any of the kinds of manufacture defined in paragraph 1 takes place. 

I 10. The term " Institute " as used herein shall mean the Under- 
wear Institute, located at 203 Union Trust Building, Washington, 
D.C. 

, 11. The term " Industry Committee " as used herein shall mean the 

'Underwear and Allied Products Manufacturing Industry Com- 

' mittee provided for in Part IV of this Code. 

12. The term " Act " as used herein shall mean the National In- 
j dustrial Recovery Act and all amendments thereto, and the term 
I " Code " shall mean this and/or subsequent and/or supplemental 
' codes and amendments thereto. 

13. The term " Secretary " as used herein shall mean the Secretary 
of the Institute. 

14. The term " Learner " as used herein shall mean an employee 
engaged in any process in the Industry requiring skilled labor with 
less than eight (8) weeks' experience in the same or any comparable 
process. 

15. The term " Privileged Employee " shall mean one who by rea- 
son of proven physical or mental infirmity is not able to do the 
minimum amount of work usually done by employees in his classifica- 

i tion of work. 

Part II — Labor 

1. Prohibition of Child Labor. — On or after the effective date of 
ithis Code, employers shall not employ any minor under the age of 

sixteen (16) years. 

2. Elimination of Home 'Work. — No part of the process of the 
manufacture of the underwear and/or allied products covered by 
this Code shall take place in the home premises or living quarters of 
any person. The purpose of this provision is to prohibit the dis- 
tribution by any person governed by this Code of products or 
materials to anyone for home work. 

3. Regulation of Hours of Work. — (a) On and after the effective 
[date, employers in the Industry shall not operate on a schedule of 
i hours of labor for their employees — except office and supervisory 
1 staff, repair-shop crews, engineers, electricians, firemen, machine 



317 

fixers, shipping, watching, cleaners, and outside crew — in excess of 
forty (40) hours per week. 

(b) On and after the effective date the maximum hours of labor 
of repair-shop crews, machine fixers, engineers, electricians, and 
watching crews in the Industry, shall, except in the case of emergency 
work, be forty (40) hours a week with a tolerance of 10 percent. 
Any emergency time in any mill shall be reported monthly to the 
Institute. 

(c) On and after effective date the maximum hours of labor 
for office employees in the Industry shall be an average of forty 
(40) hours a week over each period of one month. 

(d) Until adoption of further provisions of this Code that may 
prove necessary to prevent any improper speeding up of work 
(stretch outs), no employee shall be required to do any work in 
excess of the practices as to the class of work of such employee pre- 
vailing on July 1, 1933, or prior to the Share the Work Movement, 
unless such increase is submitted to and approved by the Industry 
Committee created by the Code and by the Administrator. 

(e) These provisions for maximum hours establish a maximum 
of hours of labor per week for every em.ployee covered, so that 
under no circumstances will such an employee be employed or per- 
mitted to work for one or more employers in the industry in the 
aggregate in excess of the prescribed number of hours in a single 
week. 

4. Minimvmi Wage Rates. — (a) On and after the effective date, 
the minimum wage that shall be paid by employers in the industry 
to any of their employees — except to learners, privileged employees, 
cleaners, and outside crews — shall be at the rate of $12.00 per week 
when employed in the Southern section of the Industry and at the 
rate of $13.00 per week when employed in the Northern section for 
forty (40) hours per week of labor. Learners shall be paid at the 
standard piece-work rate, but in no event shall be paid less than 
$8.00 per week. 

The States of Virginia, Tennessee, North Carolina, South Caro- 
lina, Georgia, Florida, Alabama, Mississippi, Arkansas, Texas, 
Louisiana, Oklahoma shall constitute the Southern section of the 
Industry. Other states and the District of Columbia shall constitute 
the Northern section. 

(b) The amount of difference existing prior to the effective date 
between the wage rates paid various classes of employees receiving 
more than the established minimum wage shall not be decreased ; and 
in no event shall any employer pay any employee a wage rate which 
will yield a less wage for a work week of forty (40) hours than such 
employee would have received for the same class of work for the 
longer week of forty eight (48) hours or more prevailing prior to 
the effective date. It shall be a function of the Industry Committee 
to observe the operation of these provisions and recommend to the 
Administrator such further provisions as experience may indicate 
to be appropriate to effectuate their purposes. 

(c) The provisions for a minimum wage in this Code establish a 
guaranteed minimum rate of pay per hour of emploj-ment regardless 
of whether the emploj^ee's compensation is otherwise based on a 
time rate or upon a piece-work performance. 



318 

(d) Cleaners, outside workers, and privileged employees combined 
shall not exceed eight (8) percent of the total employees; they shall 
receive not less than seventy-five (75) percent of the minimum wage 
provided for ordinary employees in Clause (a) above and when 
working on a piecework basis shall receive the standard piecework 
rate for the particular operation performed. 

5. General Regulations. — Employers shall comply with the re- 
quirements of Section 7 (a) of Title I of the National Industrial 
Recovery Act as follows : 

(a) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers 
of labor, or their agents, in the designation of such representatives 
or in self -organization or in other concerted activities for the pur- 
pose of collective bargaining or other mutual aid or protection, 

(b) No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

Part III — Machine-Hours 

1. No sewing machine shall be operated for more than one (1) 
shift of forty (40) hours per week. 

2. No knitting machine shall be operated for more than two (2) 
shifts of forty (40) hours each per week. 

Part IV — Administration 

1. To effectuate further the policies of the Act, an Underwear and 
Allied Products Manufacturing Industry Committee is hereby set 
up to cooperate with the Administrator as a planning and fair prac- 
tice agency for the Underwear and Allied Products Manufacturing 
Industry. This Committee shall consist of six representatives of the 
Underwear and Allied Products Industry, duly elected by the mem- 
bers of the Underwear Institute, and three members without vote 
appointed by the President of the United States. The Industry 
Committee may from time to time present to the Administrator rec- 
ommendations based on conditions in the Industry as they may de- 
velop from time to time which will tend to effectuate the operation 
of the provisions of this Code and the policy of the National Indus- 
trial Recovery Act. Such recommendations, when approved by the 
Administrator, shall have the same force and effect as any other 
provisions of this Code. 

(a) The Industry Committee shall cooperate with the Adminis- 
trator in making investigations as to the functioning and observance 
of any provisions of this Code, at its own instance or on complaint 
by any person affected, and shall report the results of said investiga- 
tions to the Administrator. 

(b) The Industry Committee may make specific recommendations 
to the Administrator for changes in or exemptions from the pro- 



319 

visions of this Code as to the working hours of machinery which 
will tend to preserve a balance of productive activity with con- 
sumption requirements, in order properly to serve the interests of 
the industry and of the public. 

(c) The Industry Committee may also investigate and inform the 
Administrator on behalf of the Industry as to the importation of 
competitive articles into the United States in substantial quanti- 
ties or in increasing ratio to domestic production on such terms or 
under such conditions as to render ineffective or seriously to endan- 
ger the maintenance of this Code and may act as an agency for 
making complaint to the President on behalf of the Industry, under 
the provisions of the National Industrial Recovery Act, with 
respect thereto, 

2. With a view to keeping the President informed as to the ob- 
servance or nonobservance of this Code of Fair Competition, and 
as to whether the Underwear and Allied Products Industry is tak- 
ing appropriate steps to effectuate the declared policy of the 
National Industrial Recovery Act, each person engaged in the In- 
dustry shall furnish duly certified reports in substance as follows 
and in such form as may be provided by the Industry Committee: 

(a) Wages and Hours of Labor. — Returns every four weeks duly 
certified showing actual hours worked by the various occupational 
groups of employees and minimum weekly rates of wages. 

(b) Machinery Data. — Returns every four weeks duly certified 
showing the number of knitting and/or sewing machines in place, 
the number of such machines actually operated each week, the num- 
ber of shifts, and the total number of machine hours each week 
for each of the above types of machine. 

(c) Production Data. — Returns every four weeks duly certified 
showing, in terms of the unit commonly used by the various branches 
of the Industry affected, e.g., linear yards, pounds, pieces, or dozens, 
the following: 1, production; 2, stocks on hand {{a) sold, (&) un- 
sold) ; 3, new orders; 4, unfilled orders. 

The Underwear Institute, 203 Union Trust Building, Washington, 
D.C., is hereby constituted the agency to collect and receive such 
reports. The Industry Committee may from time to time, subject 
to the approval of the Administrator, modify the nature of these 
reports. 

3. On and after the effective date all persons engaged or engaging 
in the Industry shall register with the Industry Committee each 
unit of their productive machinery. 

4. Each person shall file with the Secretary of the Institute 
promptly upon its issuance each and every price list, duly certified 
by a proper executive, showing all prices of the respective mer- 
chandise of the respective person, and all terms, including cash and 
quantity discounts and allowances of every description and condi- 
tions pertaining to transportation charges or allowances applying 
thereto, and shall likewise promptly notify the Secretary as to any 
and all changes in such prices, terms, discounts, and allowances not 
covered by price lists. Such price lists and notices shall be filed by 
the SecretaTy for reference, and shall be available for inspection 
only by the Secretary or the Administrator, or their duly authorized 



320 

representatives. Nothing in this paragraph shall be construed to 
niillifv or modify any other provision of this Code. 

5. All persons and agencies thereof shall be charged with the 
keeping of all records required to be kept by the provisions of this 
Code in such manner that an inspection of them shall show readily 
and easily whether or not the provisions of this Code have been or 
are being violated. 

6. Any employer may participate in any activities of the Under- 
wear Institute and in the preparation of any revision of, or additions 
or supplements to, this Code by assuming the proper pro rata share 
of the cost and responsibility of creating and administering it, either 
by becoming a member of the Underwear Institute or by paying to 
it an amount equal to the dues from time to time provided to be 
paid by a member in like situation of the Underwear Institute. 

7. Subject to the approval of the Administrator, there shall be 
established and maintained by each person engaged in the Industry 
methods of cost finding approved by the Industry Committee. 

Part V — Geio:ral Provisions 

1. No person shall manufacture or contract for the manufacturing 
of underwear or allied products in penal or other institutions not 
conforming to hours and standards required by this Code. Under- 
wear or allied products produced in such institutions shall not be 
merchandized or sold in such a manner as to create unfair competi- 
tion under this Code. 

2. All standards already formulated in cooperation with the Bu- 
reau of Standards of the United States Department of Commerce 
and approved by the Industry or standards which shall be so formu- 
lated and approved shall become the standards for the Industry. 
All merchandise manufactured after the effective date shall be 
plainly and visibly marked by an indelible .stamp or firmly sewn 
label " substandard ", where such merchandise comes below the mini- 
mum standards. Every manufacturer shall plainly mark with an 
indelible stamp or firmly sewn label the sizes of measurements of 
his product thereon. However, any merchandise manufactured 
prior to the date of adoption of a standard for .such merchandise 
shall not, in any case, be classified as " substandard " merchandise, 
and the Secretary shall notify all known interested persons in the 
Industry of each new standard adopted and the effective date thereof. 

3. Where the costs of executing contracts entered into in the In- 
dustry prior to the presentation to Congress of the National Indus- 
trial Recovery Act are increased by the application of the provi- 
sions of that Act to the Industry, it is equitable and promotive of 
the purposes of the Act that appropriate adjustments of such con- 
tracts to reflect such increased costs be arrived at by arbitral pro- 
ceedings or otherwise, and the Industry Committee, the applicant for 
thi,s Code, is constituted an agency to assist in effecting such ad- 
justments. 

4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
vision of Clause 10 (b) of the National Industrial Recovery Act, 



I 



321 

from time to time to cancel or modify any order, approval, license, 
rule or regulation, issued under Title I of said Act, and specifically 
to the right of the President to cancel or modify his approval of 
this Code or any conditions imposed by him upon his approval 
thereof. 

5. Such of the provisions of this Code as are not required to be 
included herein by the National Industrial Recovery Act, may 
with the approval of the President, be modified or eliminated if it 
appears that the public needs are not being served thereby and as 
changes in circumstances or experience may indicate. They shall 
remain in effect unless and until so modified or eliminated or until 
the expiration of the Act. It is contemplated that from time to time 
supplementary provisions to this Code or additional codes will be 
submitted for the approval of the President to prevent unfair com- 
petition in price and other unfair and destructive competitive prac- 
tices and to effectuate the other purposes and policies of Title I of 
the National Industrial Recovery Act. 

6. The Underwear Institute, the applicant for this Code, shall 
impose no inequitable restriction upon admission to membership. 

Part VI — Unfais Trade Practices 

To effectuate the purposes of the National Industrial Recovery 
Act, persons engaged in this Industry shall comply with the follow- 
ing trade practices, and violation of any of them shall be construed 
as an act of unfair competition : 

1. In order to prevent destructive price cutting in the Industry no 
person shall sell any merchandise at less than its " reasonable cost " 
except as to defective goods known in the trade as " Irregulars ", 
" Imperfects ", or " Seconds ", which, when sold, shall be plainly 
and visibly so marked on each garment and invoiced, and except as 
to goods discontinued from the line of the respective person, and 
therefore no longer to be manufactured by such person, sold at a 
discount price as " close outs " and so designated in the sale and the 
invoicing thereof, provided, however, that the Institute shall submit 
to the Administrator, within six months after the effective date of 
this Code, a plan for regulating the disposal of distress merchandise 
in a way to secure the protection of the owners and to promote sound 
and stable conditions in the Industry. The Industry Committee 
shall, subject to the approval of the Administrator, define " reason- 
able cost " for the purposes of this Code and determine upon a 
basis to be uniform among the persons of this Industry as the 
character of the items to be included in such " reasonable cost." 

2. Standards terms shall be 2/10 E.O.M. or net 60 days. Invoices 
on and after the 25th of the month shall be as of the first of the 
following month. Maximum rate of anticipation shall be 6 percent 
per annum. Closer terms shall not be prohibited. The building up 
of prices to take care of greater discounts than 2 percent shall be 
prohibited. These terms shall become effective on the effective date 
of this Code, except as to shipments against orders booked prior to 
the effective date of this Code. 



322 

3. No person shall affix to any merchandise, or to the packaging 
thereof, fictitious resale price tickets, or other resale price indication, 
which may make it appear to the buying public that the actual resale 
price charged by the ultimate seller is lower than the supposed stand- 
ard as indicated by such fictitious resale price indication. No person 
shall sell on consignment basis, directly or indirectly, or grant rebates 
to any customer, or enter into any secret selling conditions with any 
customer. No person shall allow the equivalent of secret rebates or 
secret discounts in the way of advertising or other allowances. No 
person shall accept and pay for, or make credit allowances for, goods 
returned for other causes than fault or error of the seller. 

4. Regular number, i.e., " Firsts ", shall not be marked " Seconds ", 
or so sold. Misrepresentation or misbranding of merchandise is an 
unfair trade practice. No person shall enter into any form of special 
remuneration of employees of a customer to encourage such em- 
ployees to push the sale of such person's merchandise to the detri- 
ment of competitors. No person shall enter into any false or mis- 
leading advertising. No person shall imitate the trade marks, trade 
names, and/or trade slogans of competitors. 

Part VII — Monopolies 

This Code shall not in any way permit monopolies or monopolistic 
practices. 



Approved Code No. 23. 
Registry No. 275/1/03. 



o 



Approved Code No. 24 
CODE OF FAIR COMPETITION 

FOR THE 

BITUMINOUS COAL INDUSTRY 

As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Bituminous Coal Industry, and hearings 
having been held thereon and the Administrator having rendered his 
report containing an analysis of the said Code of Fair Competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions of 
Title I of said Act and that the requirements of clauses (1) and (2) 
of subsection (a) of Section 3 of the said Act have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and is hereby approved, subject to the following 
conditions : 

(1) There shall be added to the first paragraph of Section 3 of 
Article VII of the Code the following sentence : 

All coal producers subject to the Code shall furnish to any 
government agency or agencies designated by the Adminis- 
trator such statistical information as the Administrator may, 
from time to time, deem necessary for the purposes recited in 
Section 3 (a) of the National Industrial Recovery Act and 
any reports and other information collected and compiled by 
a Code Authority, as heretofore provided, shall be transmitted 
to such government agencies, as the Administrator may direct. 

29223 °— 296-61 34 (323) 



324 

(2) There shall be added after the first sentence of Section 4 of 
Article VII the following sentence : 

The President may appoint not more than three members of 
the Industrial Board in addition to, or in substitution for one 
or more of, the aforesaid six members of the Divisional Code 
Authorities. 

(3) Schedule A as attached to the Code recommended by the 
Administrator is approved with the understanding that any basic 
minimum rates not fixed therein may be approved or prescribed by 
the President at any time prior to the effective date of this Code by a 
supplementary Executive Order. 

(4) Because it is evident that attempts by those submitting Codes 
to interpret Section 7 (a) of the National Industrial Recovery Act 
have led to confusion and misunderstanding, such interpretations 
should not be incorporated in Codes of Fair Competition. There- 
fore, paragraph (b) of Article V must be eliminated without, by 
this exclusion, indicating disapproval in any way of the joint state- 
ment of the Administrator and General Counsel of the National 
Recovery Administration, which has been attached to the Code as 
Schedule B and was incorporated by reference in said paragraph 
(b) of Article V. 

(5) The exception to the definition of "employee" in Article II 
belongs in Article III. Accordingly, the words '' except members of 
the executive, supervisory, technical and confidential personnel " are 
stricken from the third paragraph of Article 11. These same words 
are inserted in the first paragraph of Article III after the words " no 
employee." 

FRANKLIN D. ROOSEVELT. 
Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

September 18, 1933. 



September 17, 1933. 
General Hugh S. Johnson, 

Administrator, National Recovery Administration, 

Washington, D.O. 

Dear Sir: I present herewith for your consideration and recom- 
mendation to the President the Code of Fair Competition for the 
Bituminous Coal Industry. 

Efforts were under way to secure the cooperation of the Bitumi- 
nous Coal operators prior to and in anticipation of the passage of the 
National Industrial Recovery Act. 

The state of utter disorganization in the industry involving the 
prevalence of unfair competitive practices, particularly in the pay- 
ment of low wages in order to permit of unreasonably low coal prices, 
furnished a good example of the effects of unrestrained competition 
in an industry capable of great overproduction in relation to existing 
consumer demands. In numerous ways the Bituminous Coal Indus- 
try has furnished more convincing evidence of the need for the 
integrating force of the National Industrial Recovery Act than any 
other industry in the nation. 

The initial and immediate activity of the Administrator and the 
present writer after your appointment was an effort to bring about 
a greater coordination and cooperation between the operators in the 
different sections of the country in this industry and largely in re- 
sponse to this effort there came into being the Northern Coal Control 
Association and the Smokeless Appalachian Coal Association, repre- 
senting almost all producers in the Appalachian coal area which pro- 
duces approximately 70% of the national Bituminous coal tonnage. 
These associations join in presenting a Code of Fair Competition, 
this being a remarkable exhibition of cooperation among coal pro- 
ducers who have been engaged for a generation in bitter competitive 
operations. Other associations in various regions presented separate 
Codes as did certain groups of individual producers thus offered to 
the Administration the problem of harmonizing in some manner the 
divergent views represented in some twenty-eight different Codes. 

This industry also presented the unique problem of one in which 
there was far-reaching organization of labor on an industrial basis, 
The United Mine Workers of America having contracts with many 
operators in many fields and claiming organization of workers in 
many other fields where no contractual relations existed. 

The difficulty of reconciling all the conflicting elements in this 
situation can hardly be overemphasized. During the progress of 
discussion following the public hearings representatives of the Appa- 
lachian Associations requested the aid of the Administration in 
facilitating the negotiation of a contract between these associations 
and the United Mine Workers of America, and it was evident to the 
Administration that this step having been taken a successful conclu- 
sion to these negotiations was of the utmost importance in bringing 
about the submission of a code for the industry as a whole. 

In the detailed report which will be prepared for your consideration 
all the steps taken and the problems mvolved will be given more 

(325) 



326 

adequate consideration. At the present time in view of the urgent 
need for the recommendation and approval of the code which was 
finally adopted and submitted for a|)proval on September 16 by rep- 
resentatives of approximately 95 percent of the national tonnage, it 
is desirable to make recommendations only as to the following minor 
details: 

1. There is a provision in Article VII, section 3, requiring each code 
authority to collect and combine any report and other information 
required under the National Industrial Recovery Act. This should 
be supplemented by a definite obligation imposed upon the industry 
to furnish to government agencies such statistical information as the 
administrator may deem necessary for the purposes recited in Section 
3-A of the National Industrial Recovery Act in the form of an 
Executive Order to be recommended to the President. An appro- 
priate provision will be drafted to cover these requirements. 

2. In Article VII, Section 4, provision is made for establishing an 
Industrial board to consist of nine members designated by the several 
divisional code authorities and the six members of the divisional 
authorities who have been appointed by the President. It appears 
that the provision as written may unduly restrict the President in 
placing on the Industrial Board only his appointees to the divisional 
code authorities. 

Accordingly, it is recommended that as a condition of approval 
the President reserve the right to name not more than three mem- 
bers either in substitution for, or in addition to the six presidential 
appointees made members of the Industrial Board by the present 
provision of Section 4, of Article VII. 

3. Schedule A fixes basic minimum rates for various districts and 
parts thereof leaving the rates for certain producing areas to be either 
approved or prescribed b}' the President prior to the effective date of 
the code. In view of progress made since the submission of the code 
in determining those rates not fixed in schedule A as submitted, I am 
able to recommend the revised Schedule A attached to this report, 
and desire to make it plain that no rates as fixed in Schedule A as 
submitted have been changed. 

The code as recommended complies in all respects with the perti- 
nent provisions of Title I of the Act. The groups submitting the 
code impose no inequitable restrictions on admission to membersliip 
therein and were truly representative of the Bituminous Industry. 

The code as recommended is not designed to promote monopoHes 
or to eliminate or oppress small enterprises and will not operate to 
discriminate against them, and will tend to effectuate the policy of 
Title I of the National Industrial Recovery Act. 

From e^ddence adduced during the hearing and all available infor- 
mation, it is believed that this code as now proposed and revised 
represents an effective, practical, equitable solution for this industry, 
and its approval as herewith submitted is recommended. 
Respectfully submitted. 

K. M. Simpson, 
Deputy Administrator. 
Approved: 

Hugh S. Johnson, 

Administrator. 






CODE OF FAIR COMPETITION 

FOR THE 

BITUMINOUS COAL INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the bituminous-coal industry and upon approval 
by the President shall be the standards of fair competition for this 
Industry. 

Article II — Definitions 

As used in this Code the term "Industry" as applied to the 
Bituminous Coal Industry means the production and original sale 
of all kinds of coal (except anthracite), lignite, and the production 
and original sale of coke other than byproduct coke. 

The term "employer" includes any person employing labor in 
any phase of the industry. 

The term "employee" includes all persons employed in the 
industry. 

The term "Administrator" means the official designated by the 
President to administer the National Industrial Recovery Act. 

Article III — Maximum Hours of Labor 

No employee, except members of the executive, supervisory, 
technical, and confidential personnel, shall be employed in excess of 
40 hours in any calendar week after the effective date of this Code. 
No employee shaU be required or permitted to work more than 
eight hours in any one day at the usual working places or otherwise 
in or about the mine (exclusive of lunch period), whether paid by 
the hour or on a tonnage or other piecework basis. 

There shall be excepted from the foregoing limitations (a) em- 

f)loyees required because of accidents which temporarily necessitate 
onger hours for them; (b) supervisors, clerks, technicians and that 
small number of employees at each mine whose daily work includes 
the handling of man-trips and/or haulage animals and coal in transit 
and those who are required to remain on duty while men are entering 
and leaving the mine. 

The foregoing maximum hours of work shall not be construed as a 
minimum; and if at any mine a majority of the employed workers 
express their desire, by written request to the employer, to share 
available work with bona fide unemployed workers of the same mine, 
the number of hours' work may be adjusted accordingly by mutual 
agreement between such employed workers and their employers. 

Article IV — Minimum Rates of Pay 

The basic minimum rate for inside skilled labor and the basic 
minimum rate for outside common labor shall be the rate hereinafter 

(327) 



328 

set forth in Schedule "A" for each district therein described for each 
such classification of labor, with the understanding that other classi- 
fications of employment will maintain their customary differentials 
above or below said basic minimum rates and that payments for work 
performed on a tonnage or other piecework basis will maintain 
their customary relationsliip to the payments on a time basis provided 
in said basic minimum rates. 

Article V- — Conditions or Employment 

(a) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection; (2) no 
employee and no one seeking employment shall be required as a 
condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his own 
choosing; and (3) employers shall comply with the maxim mn hours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President. 

(b) Except as other\vise hereinafter provided, all coal mined on a 
tonnage basis shall be weighed and the miner paid on the basis of 2,000 
or 2,240 pound ton. The miners shall have the right to a check- 
weighman, of their own choosing, to inspect the weighing of coal: 
Provided, that where mines are not now equipped to weigh coal a' 
reasonable time may be allowed to so equip such mines; and pro- 
vided, that in any case where rates of pay are based on any other 
method than on actual v\^eights, the miners shall have the right to 
check the accuracy and fairness of the application of such methods, 
by representatives of their own choosing. 

(c) The net amount of wages due shall be paid semimonthly in 
lawful money or par check at the option of operators. Any deductions 
from employees' pay, if not a matter of agreement, shall be in con- 
formity with such general rules and regulations as the Administrator 
may prescribe for the purpose of preventing unfair deductions, or 
those which may in effect lower the rates of pay herein provided. 

(d) Employees other than maintenance or supervisory men or 
those necessary to protect the property shall not be required as a 
condition of employment to live in homes rented from the employer. 

(e) No employee shaU be required as a condition of employment 
to trade at the store of the employer. 

(f) No person under seventeen (17) years of age shall be employed 
inside any mine or in hazardous occupations outside any mine, pro- 
vided, however, that where a state law provides a higher minimum 
age, the state law shall govern; no person under the age of sixteen (16) 
shaU be employed in or about a mine. 

(g) As soon as possible after the adoption of this Code, the Na- 
tional Recovery Administration shall undertake, tlirough a designated 
committee or agency, an investigation for the purpose of reporting on 
or before December 31, 1933; upon (a) the practicability and cost 
(assuming the maintenance of existing rates of pay) of applying to 
bituminous coal mining a shorter work day and work week; (b) the 



I 



329 

effect of an advisability of revising wage differentials in the various 
divisions and districts of the industry and in the event of recommended 
change specification of the amount thereof; (c) the sales obtained for 
coal, or reasonably to be anticipated, up to the time of the report, for 
the purpose of determining whether wages and employment can be 
further increased or maintained without imposing un"due burdens 
upon the industry. 

On January 5, 1934, there shall be held a conference between rep- 
resentatives of employers and employees operating under this Code, 
together with representatives of the National Recovery Admin- 
istration, for the purpose of determining what, if any, revisions may 
be desirable at that time of the wages, hours, and differentials, or any 
other requirements of this Code, on the basis of conditions then 
existing and the report of representatives of the National Recovery 
Administration made as hereinbefore provided. 

Unless revised by mutual agreement, as the result of said confer- 
ence beginning January 5, 1934, the hours of work, minimum rates 
of pay, and wage differentials as set forth in this Code shall continue 
in effect untU April 1, 1934. 

Article VI — Unfair Practices 

Section 1. The selling of coal under a fair market price (necessary 
to carry out the purposes of the National Industrial Recovery Act, 
to pay the minimum rates herein established, and to furnish employ- 
ment for labor) is hereby declared to be an unfair competitive prac- 
tice and in violation of this Code. In order to determine the fair 
market price, agencies shall be established, as hereinafter provided, 
and sales of coal at any time at a price less than a fair market price 
determined and published, as hereinafter provided, shall create 
against any person selling at a lower price a prima facie presumption 
that such a person is engaged in destructive price cutting and unfair 
competition. It shall be proper in determining such fair market 
price to take into consideration, in addition to the matters above set 
forth, also competition with other coals, fuels, and forms of energy 
or heat production. 

Sec. 2. The fair market prices of coal of any grade and character 
referred to in the next preceding section, subject to the power of 
review hereinafter stated shall be — 

(a) The minimum prices for the various grades and sizes in the 
various consuming markets which may be established for future 
application by a marketing agency or by marketing agencies, of 
whatever form or howsoever constituted, now existing or hereafter 
created or organized, acting for coal producers truly representative 
of at least two thirds of the commercial tonnage of any coal district 
or group of districts, such minimum prices to be effective when and as 
announced as provided in Section 4 hereof. 

(b) The minimum prices for the various grades and sizes in the 
various consuming markets, where no such marketing agency exists, 
which may be established for future application by the respective 
Code Authorities hereinafter set up, for their respective areas, after 
having given consideration to the various conditions and circum- 
stances entering into the sale of each grade and class of commercial 
coal produced in the district or group of districts it represents, such 

29223°— 296-61 34 2 



330 

minimum prices to be effective when announced as provided in Section 
4 hereof. 

(c) As a basis for determining the fair market price to be announced 
and published, as provided in the two preceding clauses, the Code 
Authorities shall utilize the Classifications of coals made by such 
agencies as are referred to in clause (a) of this section, and shall 
classify the coals in said districts not sold by such agencies and also 
the coals in the districts referred to in clause (b) of this section, to 
which the various prices apply. Said Code Authorities shall, at all 
times, provide and keep open an office during business hours to which 
any coal producer in said districts and any representative of the 
Administrator may apply for information with, respect to said classifi- 
cations and prices. 

(d) The term "marketing agency" or "agency" as used in this 
Article shall include any trade association of coal producers com- 
plying with the recpiirements of a marketing agency and exercising 
the functions thereof. 

Sec. 3. The fair market prices estabhshed for future application 
under the provisions of Section 2 (a) shall be reported to said Code 
Authorities by any such marketing agencies in such manner as may 
be required by such Authorities. 

Sec. 4. The fair market price of bituminous coal, established as 
aforesaid by such agencies and Code Authorities shall be published 
within fifteen davs after the effective date of this Code, after approval 
by the Presidential ]Member of the Code Authority (acting under the 
direction of the Administrator), who in Ids approval may permit a 
reduction or increase in said prices by action of said agencies or 
Authorities within the limits which he may prescribe, and thereafter 
shall be published whenever any change is made therein, and not 
less frequent!}'' than one each month, and on the fiist of the m.onth. 
Simultaneously with such publication, said fair market prices of 
bituminous coal shall be transmitted by the Code Authorities to the 
National Recover}^ Administrator for his further review and subse- 
quent action. 

Sec. 5. Both the records and the data of such marketing agencies 
and of said Code Authorities shall be open to inspection and investi- 
gation by any agent of the Administrator whom he shall appoint for 
that purpose. Should such an agent of the Administrator disapprove 
of any changes proposed in any fair market prices from those previously- 
approved b}'^ the Administrator as being in excess of any reductions 
or increases allowed in such approval, such changes shall not be made 
effective unless and until the Administrator shall approve them. 

Sec. 6. The consignm.ent of unordered coal, or the forwarding of 
coal which has not actually been sold, consigned to the producer or 
his agent, is a violation of this code; provided, however, that coal 
which has not actually been sold may be forwarded, consigned to the 
producer or liis agent at rail or truck yards, tidewater ports, river 
ports, or lake ports, and/or docks beyond such ports, but such 
consignments shall be limited to cover: 

(a) Bunker coal ; 

(b) Coal applicable against existing contracts; 

(c) Coal for storage (other than in railroad cars) by the 

producer or his agent in rail or truck yards or on docks, 
wharves, or other yards for resale by the producer or his 
agent. , 



I 



331 

Sec. 7. The adjustment of claims with purchasers of coal in such 
manner as to grant secret allowances, secret rebates^ or secret con- 
cessions creates price discrimination and is a violation of this Code. 

Sec. 8. The prepayment of freight charges with intent or with the 
effect of granting a discriminatory credit allowance is a violation of 
this Code. 

Sec. 9. The giving in any form of adjustm.ents, allowances, dis- 
counts, credits, or refunds to purchasers or sellers of coal, for the 
purpose or with the effect of altering retroactively a price previously 
agreed upon in such manner as to create price discrimination is a 
violation of this Code. 

Sec. 10. The predating or the postdating of any invoice or con- 
tract for the purchase or sale of coal, except to conform to a bona fide 
agreement for the purchase or sale entered into on the predate is a 
violation of this Code. 

Sec. 11. Terms of sale shall be strictly adhered to; and the pay- 
ment or allowance of rebates, refunds, credits, or unearned discounts, 
whether in the form of money or otherwise, or extending to certain 
purchasers services or privileges not extended to all purchasers under 
like terms and conditions, is a violation of this Code. 

Sec. 12. An attempt to purchase business, or obtain information 
concerning a competitor's business by gifts or bribes, is a violation of 
this Code. 

Sec. 13. The intentional misrepresentation of analysis and/or 
sizes or the intentional making, causing or permitting to be made, or 
publishing, of any false, untrue, misleading, or deceptive, statement, 
by way of advertising, m voice, or otherwise, concerning the size, 
quality, character, nature, preparation or origin of any coal, bought 
or sold, is a violation of this Code. 

Sec. 14. The unauthorized use, either in written or oral form, of 
trade m^arks, trade names, slogans, or advertising matter already 
adopted by a competitor, or deceptive approximation thereof, is a 
violation of this Code. 

Sec. 15. Inducing or attempting to induce, by any means or device 
whatsoever, a breach of contract between a competitor and his cus- 
tomer during the terai of such contract, is a violation of this Code. 

Sec. 16. Nothing in the foregoing sections of this Article shall 
prevent any American producer from creating special prices for over- 
seas exports. 

Sec. 17. The splitting or dividing of commissions, brokers fees, 
or brokerage discounts, or otherwise in any manner through sham or 
indirection the use of brokerage commission or jobbers arrangements 
or sales agency for making discounts, allowances, or rebates, or prices 
other than those determined as provided in this Code, to any indus- 
trial consumer or to any retailer, or to others, shall be a violation of 
this Code. 

Sec. 18. To sell to, or through, any broker, jobber, commission 
account, or sales agency, which is in fact an agent for an organization 
of retailers or industrial consum.ers, whereby they secure indirectly 
a discount, dividend, allowance or rebates, or a price other than that 
determined as provided in tiiis Code shall be a violation of tliis Code, 



i 



332 

Article VII — Administration 

Section 1. For the purposes of Administration of this Code, the 
Bituminous Coal Industry is hereby divided into five divisions as 
follows: 

Division No. I. — Pennsylvania, Ohio, Lower Peninsula of Michigan, 
Maryland, West Virginia, Kentucky, Northern Tennessee, (including 
all counties not included wdthin Division No. Ill), Virginia and 
North Carolina. 

Division No. II. — Iowa, Indiana, and Illinois. 

Division No. III. — -Alabama, Southern Tennessee, (including 
Marion, Grundy, Sequatchie, White, Hamilton, Bledsoe and Rhea 
Counties), and Georgia. 

Division No. IV. — Missouri, Kansas, Arkansas, Oldahoma, and 
Texas. 

Division No. V. — New Mexico, Colorado, Utah, Wyoming, North 
Dakota, South Dakota, Montana, Idaho, Washington, Oregon, Cali- 
fornia, Nevada and Arizona. 

In each of the foregoing five divisions, subdivisions may be estab- 
lished, as hereinafter provided. 

Sec. 2. Divisional Code Authorities. — For each of the foregoing 
divisions there shall be established mthin ten days after the effective 
date hereof, or within such further time as may be permitted by the 
Administrator, a Divisional Code Authority, or Subdivisional Code 
Authorities for the administration of this Code witliin such division, 
either for the division as a unit, or for subdivisions thereof, respectively, 
as may be determined. All the members of a Code Authority, except 
one (without vote and to be appointed by the President) shall be 
selected by an association or associations, or a committee of coal 
producers within the division or subdivision which shall be truly 
representative of the industry therein and impose no inequitable 
restrictions on admission to membersliip. A full report of any such 
action taken to establish a Code Authority shall be made to the 
Administrator and shall become effective upon approval by him. A 
subdivision shall consist of a geographical area 'wathin which all coal 
producers shall be entitled to membership in the association or com- 
mittee establishing the Code Authority. The Administrator shall 
have power to limit the number of subdivisions within a division and 
to determine any controversy arising in the establishment of such a 
Code Authority, and liis decision shall be conclusive as to compliance 
with the requirements of this Section and of the National Industrial 
Recovery Act in the initial establishment of such a Code Authority. 

In the event that Subdivisional Code Authorities are established 
wdthin a di\dsion, such Subdivisional Code Authorities shall establish 
a Divisional Code Authority to exercise the functions hereinafter 
provided for a Divisional Code Authority and any other functions 
wliich may be conferred upon the Divisional Code Authority by the 
Subdivisional Code Authorities, all in conformity with any rules 
and regulations prescribed by the Administrator. One member of a 
Divisional Code Authority, without vote, shall be appointed by the 
President. 

A Code Authority shall administer this Code in its Division or 
Subdivision and shall have the duties and exercise the powers which 
are conferred upon it in this article and in Article VI of this Code, and 



333 

shall have authority to adopt appropriate by-laws, rules and regula- 
tions for the exercise of its functions. 

Marketing agencies or trade associations may be established or 
maintained wdthin any division or subdivision by a voluntary associa- 
tion of producers within any producing district therein, as such district 
may be defined by the Code Authority and function under such 
general rules and regulations as may be prescribed by the Code 
Authority, with the approval of the Administrator, for the purpose of 
preventing any unfair practices, as defined in Article VI of this Code. 

Sec. 3. Each Code Authority shall collect and compile any reports 
and other information requu'ed under the National Industrial Re- 
covery Act ; and in investigations of any complaint of unfair practices 
the Presidential member of a Code Authority shall have power to 
require reports from, and shall be given access to mspect the books 
and records of producers within the jurisdiction of such Code Author- 
ity to the extent he may deem necessary for the determination of the 
vaUdity of the complaint. All coal producers subject to the Code 
shall furnish to any government agency or agencies desigjiated by the 
Administrator such statistical information as the Administrator may, 
from time to time, deem necessary for the purposes recited m Section 
3 (a) of the National Industrial Recovery Act; and any reports and 
other information collected and compiled by a Code Authority, as 
heretofore provided, shaU be transmitted to such govermnent agencies, 
as the Administrator may direct. 

The expense of administering thia Code by a Divisional (or Sub- 
divisional) Code Authority shall be borne by those subject to such 
Code Authority, each paying his proportionate share, as assessed, 
computed on a tonnage basis, in accordance with regulations pre- 
scribed by the Code Authority with the approval of the Administrator. 

Sec. 4. Industrial Board. — There shall be established within ten 
days after the creation of the Divisional Code Authorities a National 
Bituminous Coal Industrial Board, consisting of fom' members desig- 
nated by the Divisional Code Authority of Division No. I, two mem-; 
bers designated by the Divisional Code Authority of Division No. II, i 
one member each designated by the Divisional Code Authorities of 
Divisions No. Ill, IV, and V and the five members of the Divisional 
Code Authorities who have been appointed by the President. The 
President may appoint not more than three members of the Industrial 
Board in addition to, or in substitution for one or more of, the afore- 
said five members of the Divisional Code Authorities. This Board 
shall have the duties and exercise the powers conferred upon it in 
this Code, or any revisions thereof and particularly shall meet from 
time to time at the call of the Administrator, who shall be ex officio 
Chairman thereof, to consider and to make recommendations to the 
Divisional Code Authorities and to the President as to any amend- 
ments of this Code, or other measures which may stabilize and im- 
prove the conditions of the industry and promote the pubhc interest 
therein. 

Sec. 5. Labor Relations. — (a) Any controversy concerning hours, 
wages, and conditions of employment, or compliance with the provi- 
sions of Article V of this Code, between employers and employees 
who are organized or associated for collective action shall, if possible, 
be adjusted by conference and negotiation between duly designated 
representatives of employers and such employees, meeting either in a 



334 

mine conference or district conference or divisional conference, as the 
machinery for such conference may be established by agreement of the 
parties thereto; and it shall be the duty of employers and employees 
to exert every reasonable effort to establish such a machinery of 
adjustment and to utUize it to negotiate to a conclusion such contro- 
versies wherever possible. 

(b) Any such controversy which cannot be settled in the manner 
so provided and which threatens to interrupt, or has interrupted, or is 
impairing the efficient operation of any mine or mines to such an 
extent as to restrain interstate commerce in the products thereof, 
shall be referred to the appropriate Bituminous Coal Labor Board, 
established as hereinafter provided, and the decision of said Board 
shall be accepted by the parties to the controversy as effective for a 
provisional period of not longer than six months, to be fixed by the 
Board. 

(c) During the consideration of any such controversy either by the 
agreed machinery of adjustment, or by the Bituminous Coal Labor 
Board, neither party to the controversy shall change the conditions 
out of which the controversy arose, or utilize any coercive or retalia- 
tory measures to compel the other party to accede to its demands. 

(d) If any such controversy shall involve or depend upon the deter- 
mination of who are the representatives of the employees chosen as 
provided in Section 7(a) of the National Industrial Recovery Act, the 
appropriate Bituminous Coal Labor Board, through any agent or 
agency it may select, shall have the power to determine the questions 
by an investigation and, if necessary, by a secret ballot taken under 
its direction. 

(e) A Bituminous Coal Labor Board shall be appointed by the 
President for each Division, except there shall be two Boards for 
Division No. I, to exercise the powers herein conferred upon it, which 
shall consist of three members, one to be selected from nominations 
submitted by organizations of employees within such Division, one 
to be selected from nominations by the Divisional Code Authority 
and one who shall be wholly impartial and disinterested representative 
of the President. The expenses of such board shall be met by equal 
contributions from the employers and employees nominating members, 
the amount and method of collecting which shall be determined by 
regulations prescribed by the President. 

(f) There shall be a National Bituminous Coal Labor Board com- 
posed of the members of the six divisional labor boards which may be 
convened upon call of the Administrator in the event that — 

1. A controversy involves employers and employees of more than 
one division, or 

2. The decision of a divisional labor board affects operating con- 
ditions of more than one division either directly or because of its 
effect upon competitive marketing, or 

3. In the opinion of the Administrator the decision of a divisional 
labor board involves the application of a policy affecting the general 
public, or the welfare of the industry as a whole. 

The National Bituminous Coal Labor Board may exercise all the 
powers conferred upon a divisional labor board, either in giving 
original consideration to a controversy, or in reviewing the decision 
of a divisional labor board, which may be either affirmed, set aside 
and/or modified. 



335 

Article VIII — Safety 

Employers and employees shall cooperate in maintaining' safe 
conditions of operation in compliance with the applicable requirements 
of State laws or regulations in conformity therewith. 

Article IX — ^Amendments 

Any Code Authority may propose amendments to this Code from 
time to time effective generally or as to the area within its juris- 
diction which, after submission to any other Code Authority affected 
thereby (which shall include the divisional Code Authority in case of 
an amendment proposed by a subdivisional Code Authority), may 
be recommended by the Admxinistrator for the approval of the 
President. 

Article X 

This Code and all the provisions thereof are expressly made subject 
to the right of the President, in accordance with the provision of 
subsection (b) of Section 10 of the National Industrial Recovery 
Act, from time to time to cancel or modify any order, approval, 
license, rule, or regulation issued under Title I of said Act and specifi- 
cally, but without limitations, to the right of the President to cancel 
or modify his approval of tliis Code or any conditions imposed by 
him upon his approval thereof. 

Article XI — Effective Date and Termination 

This Code shall become effective on the second Monday following 
its approval by the President, and shall continue in effect until April 
1, 1934, and thereafter in the absence of the exercise of the power 
reserved to the President in Article X, subject to the exercise of the 
option, after 30 days' notice to the Administrator, by any coal producer 
to withdraw his consent after April 1, 1934, to the further enforcement 
of the Code as a Code to which he has voluntarily given his consent. 

Approved Code No. 24. 
Registry No. 702/45. 



SCHEDULE A 

Basic Minimum Rates 



District 



Minimum inside 
skilled labor 



Dollars 
per day 



Cents 
per hour 



Minimum outside 
common labor 



Dollars 
per day 



Cents 
per hour 



DISTRICT A 

Pennsylvania 

Ohio 

Lower Peninsula of Michigan 

Panhandle District of West Virginia '. 



Northern West Virginia '. 



DISTRICT B 



DISTRICT C 



Southern West Virginia ' 

Eastern Kentucky * 

Upper Potomac District of West Virginia ». 

Maryland 

Virginia 

Northern Tennessee ' 



Indiana. 



DISTRICT D 



lUinois- 



DISTHICT E 



DISTRICT V 

Iowa' -. 

Wayne and Appanoose Counties of Iowa. 



DISTRICT a 

Missouri, Kansas, Arkansas, and Oklahoma. 

DISTRICT H 

Western Kentucky ' 



DISTRICT J 

Alabama 

Georgia 

Hamilton and Rhea Counties of Tennessee... 

DISTRICT G-l 

Marion, Grundy, Sequatchie, White, Van Buren, Warren, and 
Bledsoe Counties of Tennessee 



New Mexico 

Southern Colorado '. 



DISTRICT z 



DISTRICT L 



4.60 
4.60 
4.60 
4.60 



4.36 



4.20 
4.20 
4.20 
4.20 
4.20 
4.20 



4. 57}.: 



4.70 
4.56 



3.75 



4.00 



3.40 
3.40 
3.40 



4.48 
4.44 



5.00 



57H 

57 y 



641.^ 



52),^ 

62H 
62i.'2 
62!.'2 
521.2 



67^: 



62).: 



46J6 



50 



42).^ 
42H 
42H 



48 
66 



3.60 
3.60 
3.60 
3.60 



3.20 
3.20 
3.20 
3.20 
3.20 
3.20 



4.00 



4.00 
3.86 



3.28 



2.40 
2.40 
2.40 



3.75 
3.75 



3.75 



42 



mi 

60 



60 
48H 



37^ 



3m 



46Ji 



46Ji 



Northern Colorado 'o. 

• Includes Hancock, Brooke, Ohio, and Marshall Counties. 

2 Includes Monongalia, Preston, Marion, Harrison, Taylor, Lewis, Barbour, Gilmer, Upshur, Ran- 
dolph, Braxton, and Webster Counties and those mines in Nicholas County served by the B. & O. R.R. 

' Includes all mines in counties of West Virginia not named under districts A and B and under the 
Upper Potomac District. 

* Includes all mines in Kentucky located east of a north and south line drawn along the Western bound- 
ary of the City of Louisville. 

' Includes Grant, Mineral, and Tucker Counties. 

8 Includes all counties in Tennessee not named Districts J and J-1. 

' Excludes Wayne and Appanoose Counties. 

' Includes all mines in Kentucky west of a north and south line drawn along the western boundary of 
the City of Louisville. 

8 Includes all counties in Colorado not named under District L. 

'" Includes Jackson, Larimer, Weld, Boulder, Adams, Arapahoe, El Paso, Douglas, Elbert, and Jeffer- 
son Counties. 

Note. — Differences between districts in the foregoing minimum rates are not to be considered as fixing 
permanent wage differentials or establishing precedents for future wage scales. 

(336) 



337 



Basic Minimum Rates — Continued 





District 


Minimum inside 
skilled labor 


Minimum outside 
common labor 




Dollars 
per day 


Cents 
per hour 


Dollars 
per day 


Cents 
per hour 


Utah 


DISTRICT M 


5.44 

5.42 
5.42 

5. 03 

5.40 

4.00 
4.00 


68 

67% 

em 

703.i 
67 M 

50 
50 


4.48 

4.44 
4.54 

4.82 

4.00 

3.20 
3.20 


56 


Southern Wyomins;.. 


DISTRICT N 


55H 




56M 




DISTRICT 


60H 




DISTRICT P 


50 


North Dakota . . 


DISTRICT Q 


40 




40 








o 











Approved Code No. 25 
CODE OF FAIR COMPETITION 

FOR THE 

OIL BUR.NER INDUSTRY 
As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 1933, for my approval of a Code of 
Fair Competition for the Oil Burner Industry, and hearings having 
been held thereon and the Administrator having rendered his report 
containing an analysis of the said Code of Fair Competition together 
A^'ith his recommendations and findings with resjDect thereto, and the 
Administrator having found that the said Code of Fair Competi- 
tion complies in all respects with the pertinent provisions of Title I 
of said Act and that the requirements of clauses (1) and (2) of sub- 
section (a) of Section 3 of the said Act have been met. 

NOW, THEREFORE, I Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 18, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code of Fair 
Competition be and is hereby approved, subject to the following 
condition : 

(1) To effectuate further the policies of the Act, a Code Authority 
be created to cooperate with the Administrator as a Planning and 
Fair Practice Agency for the Oil Burner Industry, which Code 
Authority shall consist of nine representatives, of the Oil Burner 
Industry elected by a fair method of selection, to be approved by the 
Administrator, and three members without vote appointed by the 
Administrator. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A d/mn is f rat or. 

The White House, 

September 18, 193S. 

20224°— 296-62 34 (339) 



September 16, 1933. 
The President, 

The 'White House. 
My Dear Mr. President: This is a report of the hearing on the 
Code of Fair Competition for the Oil Burner Industry in the United 
States, conducted in Washington August 21st and 22nd, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

(a) The standard work week for the Oil Burner Industry shall 
be as follows : 

1. For manufacturing operations, not to exceed an average of 32 
hours per week during the period January to June, inclusive, and not 
to exceed 40 hours during any one week of that period ; not to exceed 
an average of 40 hours per week during the period July to December, 
inclusive, and not to exceed 48 hours during any one week of that 
period; a maximum average of 36 hours per week for the period of 
one year. 

2. For the installation and servicing of oil burners, not to exceed 
an average of 32 hours of labor per week during the period March 
to August, inclusive, and not to exceed 40 hours of labor during 
any one week of that period; not to exceed 48 hours of labor in 
any one week during the period of September to Novem.ber, inclu- 
sive ; not to exceed an average of 40 hours of labor per week during 
the i^eriod December to February, inclusive; and not to exceed 48 
hours of labor during any one week of that period; a maximum 
average of 38 hours of labor per week for the period of one year. 

3. For office and employees engaged in a managerial or executive 
capacity, receiving less than $35.00 per week, not to exceed a maxi- 
mum average of 40 hours per week, averaged over a six months' 
period, and not to exceed 48 hours during any one week of that 
period. 

(b) It is the declared poHcy of the Industry that, insofar as con- 
sistent with sound business practice, the same personnel shall be 
kept throughout the year. 

(c) The minimum wage rate in the Oil Burner Industry shall be 
not less than 45 cents per hour. For office or employees engaged in 
a managerial or executive capacity, the minimum wage rate shall 
not be less than $15.00 per week. This paragraph estabUshes a 
guaranteed minimum rate of pay regardless of whether the employee 
is compensated on the basis of a time rate or on a piece-work per- 
formance or otherwise. 

(d) In the event that any member of the Oil Burner Industry 
shall also be a member of another industry, such member may, with 
the approval of the Administrator, pay such wages and work such 
hours as provided in the approved code governing such other indus- 

(340) 



ri 



I 



341 



try. For purposes of pricing products of the Oil Burner Industry, 
howeyer, not less than the above minimum wage shall be used as 
the basis of calculating costs. 

(e) No person under sixteen years of age shall be employed 
in the Oil Burner Industry; provided, however, that where a State 
law specifies a higher minimum age, no person below that age so 
specified by such law shall be employed in that State. 

ECONOMIC EFFECT OF THE CODE 

The Oil Burner Industry is one of our youngest industries. .Partly 
for that reason and partly because the number of employees involved 
in the actual manufacturing process is small, the industry has re- 
ceived very little attention in statistical reports and in compilations 
of business activities. Where considered, the data are usually in- 
cluded in larger classifications. The picture is further complicated 
by the fact that part of the total oil-burner production is accom- 
plished in plants or shops which produce other products. 

In 1929, according to Census data, 69 establishments were devoted 
exclusively to the production of oil burners. This had shrunk in 
1931 to 37. The indication from available data is that the firms 
which dropped out were, on an average, very small plants. 

This is a vertical code governing all branches of the industry from 
the manufacturer to the retailer. Taking this into consideration, 
it is estimated that there will be approximately an increase of 8,000 
in employment. The increase in the monthly pay roll throughout 
the industry is estimated at approximately $800,000.00. 

FINDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limi- 
tation, subsection (a) of Section 7, and subsection (b) of Section 
10 thereof; and 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Oil Burner Industry; and that 

(c) The Code as recommended is not designed to promote mo- 
nopolies or to eliminate or oppress small enterprises and will not 
operate to discriminate against them, and will tend to effectuate the 
policy of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 
Respectfully submitted. 

Hugh S. Johnson, 

Adtninistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

OIL BURNER INDUSTRY 

I. Purpose 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, this Code is set up for the purpose of increasing em- 
ployment, establishing fair and adequate wages, effecting necessary 
reduction of hours, improving standards of labor, and eliminating 
unfair trade practices, to the end of rehabilitating the Oil Burner 
Industry and enabling it to do its part toward establishing that 
balance of industries which is necessary to the restoration and 
maintenance of the highest practical degree of public welfare. 

No provision in this Code shall be interpreted or applied in such 
a manner as to promote monopolies, or monopolistic practices, permit 
or encourage unfair competition or eliminate, oppress or discriminate 
against small enterprises. 

II. Participation 

Each member of the Industiy, subject to the jurisdiction of this 
Code and accepting the benefits of the activities of the Code Author- 
ity hereunder, shall pay to the Code Authority his proportionate 
share of the amounts necessary to pay the cost of assembling, analyz- 
ing, and publication of such reports and data, and of the maintenance 
of the said Code Authority and its activities; said proportionate 
share to be based upon value of sales, as the Code Authority, with 
the approval of the Administrator, may prescribe for each division 
or subdivision. 

III. Definitions 

A. Classes of Equipment. — For the purpose of the administration 
of this Code all products of the Oil Burner Industry shall be broadly 
defined as follows : 

Class 1. Domestic Oil Burners which shall be motor driven or 
otherwise, designed primaril}^ for use with central heating plants 
in one or two family dwellings or similar uses. 

Class 2. Commercial Oil Burners which shall be motor driven 
or otherwise, designed primarily for application to the heating plants 
of multiple dwellings and commercial and public buildings or similar 
uses. 

Class 3. Boiler-Burner Units which shall be combinations of oil 
burners and boiler or furnaces, designed primarily for heating do- 
mestic or commercial types of buildings or similar uses. 

(342) 



343 

Class 4. Distillate Oil Burners which shall be burners designed 
primarily for use in connection with cooking ranges, space heaters 
and domestic water heaters or similar uses as follows : 

(a) Conversion burners consisting of distillate burners designed 
to be installed in cooking and heating units. 

(b) Cooking or heating devices manufactured Vxpressly for use 
with oil burners, the burners becoming an integral part of the unit 
at the point of manufacture. 

Class 5. Industrial burners, which shall be burners designed pri- 
marily for producing heat or power for industrial process and/or 
purposes. 

B. Units of the Industry. — Where used in this Code the following 
definitions shall apply : 

1. Manufacturers are persons, including but not limited to, indi- 
viduals, partnerships, associations, or corporations engaged in the 
production of oil burners by fabrication and/or assembly. 

2. Distributors are persons, including but not limited to, indi- 
viduals, partnerships, associations, or corporations operating under 
a contract and/or franchise to purchase burners from a manufac- 
turer and whose oil-burner business is the sale of oil burners to 
dealers for resale at retail. 

3. Dealers are persons, including, but not limited to, individuals, 
partnerships, associations, or corporations operating under a con- 
tract and/or franchise with a manufacturer or distributor and whoso 
oil-burner business is the sale of oil burners at retail. 

IV. Labor Provisions 

The following labor provisions are hereby established for the 
oil-burner industry : 

(a) Employees in the Oil-Burner Industry shall have the right 
to organize and bargain collectively through representatives of their 
own choosing, and shall be free from the interference, restraint, or 
coercion of employers of labor or their agents, in the designation 
of such representatives or in self -organization or in other concerted 
activities for the purpose of collective bargaining or other mutual 
aid or protection. 

(b) No employee and no one seeking employment in the Oil- 
Burner Industry shall be required as a condition of employment 
to join any company union or to refrain from joining, organizing, 
or assisting a labor organization of his own choosing. 

(c) Employers in the Oil-Burner Industry shall comply with the 
maximum hours of labor, minimum rates of pay, and other condi- 
tions of employment, approved or prescribed by the President of the 
United States. 

A. Sta7idard Woi'k Week and Minhnum Wage. — (a) The standard 
work week for the Oil-Burner Industry shall be as follows : 

1. For manufacturing operations, not to exceed an average of 
32 hours per week during the period January to June, inclusive, and 
not to exceed 40 hours during any one week of that period; not to 
exceed an average of 40 hours per week during the period July to 
December, inclusive, and not to exceed 48 hours during an}' one week 



344 

of that period; a maximum average of 36 hours per week for the 
period of one year. 

2. For the installation and servicinp; of oil burners, not to exceed 
an average of 32 hours of labor per week during the period March 
to August, inclusive, and not to exceed 40 hours of labor during 
any one week of that period ; not to exceed 48 hours of labor in any 
one week during the period of September to November, inclusive; 
not to exceed an average of 40 hours of labor per week during the 
period December to February, inclusive, and not to exceed 48 hours 
of labor during any one week of that period ; a maximum average of 
38 hours of labor per week for the period of one year. 

3. For officers and emploj^ees engaged in a managerial or executive 
capacity, receiving less than $35.00 per week, not to exceed a maxi- 
mum average of 40 hours per week, averaged over a six months' 
period, and not to exceed 48 hours during any one week of that 
period. 

(b) It is the declared policy of the Industry that, insofar as con- 
sistent with sound business practices, the same personnel shall be 
kept throughout the year. 

(c) The minimum wage rate in the Oil-Burner Industry shall be 
not less than 45 cents per hour. For office or employees engaged in a 
managerial or executive capacity, the minimum wage shall not be 
less than $15.00 per week. This paragraph establishes a guaranteed 
minimum rate of pay regardless of Avhether the employee is com- 
pensated on the basis of a time rate or on a piece-work performance, 
or otherwise. 

(d) In the event that any member of the Oil-Burner Industry shall 
also be a member of another industry, such member may, with the 
approval of the Administrator, pay such wages and work such 
hours, as provided in the approved code governing such other in- 
dustr3^ For purposes of pricing products of the Oil-Burner Indus- 
try, however, not less than the above mininunn Avage shall be used 
as the basis of calculating costs. 

(e) No person under sixteen years of age shall be employed in 
the Oil-Burner Industry' ; provided, however, that where a State law 
specifies a higher minimum age, no person below that age so specified 
by such law shall b? employed in that State. 

V. Cost Pkovisions 

No member of the Oil-Burner Industry shall sell or exchange any 
product of the industry at a price below his own individual cost as 
determined by a standard cost accounting system to be set up by the 
Code Authority for the Oil-Burner Industry, subject to the approval 
and supervision of the Administration, (a) Pursuant to the above 
provision, the Code Authority shall endeavor to develop and submit 
to the Administrator for approval within 120 days after the effec- 
tive date of this Code a uniform system of cost accounting designed 
to make possible the accurate determination by each member of the 
industry of his own individual cost. 

Upon approval by the Administrator of such system of cost ac- 
counting, complete advice concerning it shall be distributed by the 
Code Authority to all members of the Oil-Burner Industry. There- 



345 

after no member of the industry shall sell or exchange any producfc 
of the industry at a price below his own individual cost. 

(b) Since it has been the general recognized practice of the Oil- 
Burner Industry to sell products on the basis of printed net price 
lists or price lists with discount sheets and fixed term of pajanent 
which are distributed to the trade, each member of the Oil-Burner 
Industry shall, within five days after the effective date of this Code, 
file with the Code Authority of the Oil-Burner Industry a net price 
list or a price list and discount sheet as the case may be, individually 
prepared by him, showing his current prices or prices and discounts 
and terms of payment. Revised price lists, with or without discount 
sheets, may be filed from time to time thereafter with the Code 
Authority by anj^ member of the industry to become effective upon a 
date specified by such member of the industry, which date shall be 
not less than ten (10) days after the filing of such revised prices at 
the office of the Code Authority, and copies thereof, with notice of 
the effective date specified, shall be immediately sent to all known 
members of the industr}^, who may file, if they so desire, revisions 
of their price lists and/or discount sheets, which, if filed not less 
than five days previous to such effective date, shall take effect upon 
the date when the revised price list or discount sheet first filed shall 
go into effect. 

If the Code Authority shall determine that any member of the 
industry is not selling its products on the basis of price lists, with 
or without discount sheets, with fixed terms of payment and that 
a system of selling on net price lists or price list and discount sheets 
should be put into effect, then such member of the industry, within 
ten (10) days after notice of the decision of the Code Authority 
under this paragraph, shall file with the Code Authority net price 
lists or price lists with discount sheets, containing fixed terms of 
payment; such price lists and/or discount sheets and terms of pay- 
ment may be revised in the manner herein above provided. How- 
ever, it is provided that the determination of the Code Authority 
as aforesaid shall be subject to the approval of the Administration. 

(c) No member of the Oil Burner Industry shall sell or exchange 
any product of the industry at prices lower or discounts greater or 
on more favorable terms of payment than the approved schedule 
of such member on file at the office of the Code Authority as above 
provided. 

(d) It is hereby provided that the operation of the foregoing 
provisions in regard to price lists shall at all times be subject to 
the approval of the Administrator and, if it be the belief of the 
Code Authority or of any member of the industry that any price 
list submitted represents sales below the cost of the member sub- 
mitting same, the date of effectiveness of such list shall automatically 
be delayed an additional ten (10) days in order that an investigation 
may be made, by the Code Authority, to determine the propriety of 
such objection. If it is found or determined by the Code Authority 
that said prior list represents figures below cost, as defined by the 
Code Authority and approved by the Administration, such price list 
shall be withdrawn and revised price lists submitted. 



346 

VI. Industry Regulations 

1. Fraudulent and deceptive practices, false or misleading adver- 
tising, mislabeling, misbranding, or the removal of manufacturers' 
labels, is unfair competition. 

2. The misappropriation of a competitors' business by inducing 
breach of contracts, espionage, piracy of styles or designs, imitation 
of trade names, is unfair competition. 

3. Defamation of competitors or of competitors' products is un- 
fair competition. 

4. The sale of oil burners or oil-burning equipment below cost 
and/or below published prices filed with the Code Authority, as 
herein provided, is unfair competition. 

5. The giving of secret rebates, special services, discounts, free dis- 
play units, or advertising allowances in excess of an amount equal 
to that expended by a dealer for local advertising and not in any 
case in excess of $10.00 per burner sold, or the providing for the 
absorption of transportation costs, is unfair competition. 

6. Commercial bribery in the form of gratuities to salesmen or em- 
ployees of distributors or dealers or the offering of rewards or pre- 
miums to purchasers of oil burners, or the payment of permit ancl/or 
inspection fees, or the giving away or selling of fuel oil at less than 
the prevailing market price in the territory, is unfair competition. 

I. The acceptance of monies from fuel-oil suppliers by oil-burner 
distributors, dealers, or manufacturers for fuel oil delivered to users 
of the particular make of oil burner, where the oil-burner distributor, 
dealer, or manufacturer does not secure the signed contract for the 
fuel oil, is unfair competition. 

8. Trade-in allowances for a burner greater than the scrap value 
thereof, or in excess of $25.00 for class 1 or 2 burners or in excess of 
$1.50 for class 4 (a) burners, is unfair competition. 

9. The retail sale of oil burners on time pajnnents extending more 
than nine (9) months, which carry financing terms more liberal 
and/or charges more liberal than 80 percent of the charges made by 
reputable financing institutions, whose principal business is the dis- 
counting of installment contracts, is unfair competition. 

10. Rendering service for class 1, 2, 3 burners beyond the first 
year after date of installation for less than $10.00 per year, replace- 
ment of parts extra at not less than cost, is unfair competition. 

II. It is unfair competition to negotiate or enter into distributor 
or dealer contracts and/or franchises which do not include uniform 
clauses : 

A. Between class 1, 2, or 3 manufacturer and distributor; class 1, 
2, or 3 manufacturer and dealer ; or between class 1, 2, or 3 distributor 
and dealer, providing as follows: 

(1) That violation of the Code for the Oil Burner Industry will 
make the contract and/or franchise subject to immediate cancellation. 

(2) The following standard guarantees: 

(a) The manufacturer guarantees all parts of the equipment 
shipped under this agreement for one year (and no longer) from 
date of installation thereof against defective material or workman- 
ship (but not against damage caused by accident, abuse, or faulty 
installation) when the equipment is installed in accordance with the 



347 

manufacturers' specifications, and will repair or replace free of 
charge, f.o.b. factory, all such defective parts if returned to the 
factory, charges prepaid. The manufacturer's liability for damages 
caused by any such defective parts shall be limited to such repair 
or replacement and in no event shall the manufacturer be liable for 
indirect or consequential damages. 

(b) The dealer agrees to guarantee to all of his customers who pur- 
chase oil burners from him, free service, day and night for at least 
three (3) heating-service months, and not more than twelve (12) 
months from date of installation, and free replacement of parts, due 
to defective material or workmanship, for a period of one year from 
date of installation, unless waiver of this provision be secured from 
the purchaser in writing at or before the time of sale. 

B. Between class 4 manufacturer and distributor; class 4 manu- 
facturer and dealer ; or between class 4 distributor and dealer provid- 
ing as follows : 

(1) That violation of the Code for the Oil Burner Industry will 
make the contract and/or franchise subject to immediate cancella- 
tion. 

(2) The following standard guarantee: 

(a) The manufacturer guarantees ail parts of the equipment 
shipped under this guarantee for one year (and no longer) from date 
of installation thereof against defective material or workmanship 
(but not against damage caused by accident, abuse, or faulty instal- 
lation) when the equipment is installed in accordance with the manu- 
facturer's specifications, and will repair or replace free of charge, 
f.o.b. factory, all such defective parts if returned to the factory, 
charges prepaid. The manufacturer's liability for damage caused 
by any such defective parts shall be limited to such repair or replace- 
ment and in no event shall the manufacturer be liable for indirect 
or consequential damages. 

VII. Administration or Code 

1. To effectuate further the policy of the Act, a Code Authority 
is hereby designated to cooperate with the Administrator as a Plan- 
ning and Fair Practice Agency for the Oil Burner Industry. This 
Code Authority shall consist of twelve members as follows : 

(a) Five members who shall be members of the Executive Com- 
mittee of the American Oil Burner Association, Inc. 

(b) One member who shall be the Chairman of the Board of 
Governors of the Dealer Division of the American Oil Burner 
Association. 

(c) One member who shall be the President of the Distillate Oil 
Burner Manufacturers Association or his nominee. 

(d) One member who shall be the President of the Pacific Coast 
Oil Burner Association or his nominee. 

(e) One member who is not a member of any of the above Asso- 
ciations and who shall be selected by the Administrator. 

(f) Three nonvoting members who shall be appointed by the 
Administrator. 

The Code Authority may present to the Administrator recom- 
mendations based on the conditions in the industry as they develop 



348 

from time to time which will tend to effectuate the operation of the 
provisions of this Code and the policy of the National Recovery 
Act. In addition, it shall have the power to require from time to 
time such reports from the industry as in its judgment may be 
necessary to advise adequately on the administration and enforce- 
ment of the provisions of this Code in cooperation with the 
Administrator. 

la. In addition to information required to be submitted to the 
Code Authority, there shall be furnished to government agencies 
such statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the National Industrial 
Recovery Act. 

2. To provide data necessary for the administration of the National 
Industrial Recovery Act, the members of the Oil Burner Industry 
shall furnish to the Code Authority such information as it, subject 
to the approval of the Administrator, may require from time to time 
but through such channels as to eliminate the identification of any 
individual company's confidential information. 

3. Where the costs of executing contracts entered into in the Oil 
Burner Industry prior to the approval of the President of the United 
States of this Code are increased by the application of the provisions 
of that Act to the industry, it is equitable and promotive of the pur- 
poses of the National Industrial Recovery Act that appropriate ad- 
justments of such contracts to reflect such increased costs be arrived 
at bj^ arbitral proceeding or otherwise, and the .Code Authority of 
the Oil Burner Industry is constituted an agency to assist in effecting 
f.mcli adjustment. 

4. This Code is hereby declared subject to the power of the Presi- 
dent, pursuant to Section 10 (b) of Title I of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule or regulation, issued under said Title and 
specificall}', but without limitation, to the right of the President, to 
cancel or modify his approval of this Code, or any condition imposed 
by him upon his approval thereof. 

5. This Code shall be in effect beginning five (5) days after its 
approval by the President of the United States. 



Approved Code No. 25. 
Registry No. 1125/01. 



o 



Approved Code No. 26 
CODE OF FAIR COMPETITION 

FOR THE 

GASOLINE PUMP MANUFACTURING INDUSTRY 
As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance Avith the provisions of title I of the National Industrial 
Kecovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Gasoline Pump Manufacturing In- 
dustry, and hearings having been held thereon and the Admini.strator 
having rendered his report containing an analysis of the said Code 
of Fair Competition together with his recommendations and findings 
with respect thereto, and the Administrator having found that the 
said Code of Fair Competition complies in all respects w^ith the 
pertinent provisions of title I of said act and that the requirements 
of clauses (1) and (2) of subsection (a) of section 3 of the said 

NOW, THEEEFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and is hereby approved, subject to the follow- 
ing condition : 

(1) To effectuate further the policies of the act, a gasoline pump 
manufacturing industry committee be created to cooperate with the 
Administrator as a Planning and Fair Practice Agency for the Gaso- 
line Pump JSIanufacturing Industry, which committee shall consist 
of five representatives of the gasoline pump manufacturing industry 
elected by a fair method of .selection, to be approved by the Admin- 
istrator, and three members without vote appointed by the 
Administrator. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

A dministrator. 
The White House, 

Septcmher 18, 1933. 
29115° 296-63 34 (349) 



September 8, 1933. 
The President, 

The White House. 
My Dear Mr. President: This is, a report of the hearing on the 
Code of Fair Competition for the Gasoline Pump Manufacturing 
Industry in the United States, conducted in Washington on August 
24th, 1933, in accordance with the provisions of the National In- 
dustrial Recoveiy Act. 

Provisions or this Code as to Wages and Hours 

II. minimum wages 

On and after the effective date the minimum wage that shall 
be paid by any employer in the Gasoline Pump Manufacturing In- 
dustry to any employee, regardless of whether the employee is com- 
pensated on the basis of a time rate, piecework performance, or 
otherwise, shall be at the rate of forty cents (400) per hour for 
forty (40) hours of labor: Provided, however, that where a State 
law fixes a higher minimum wage than that herein set forth, then 
and in such case, no employee shall receive a lower wage than that 
fixed by such State law. 

III. HOURS OF LABOR 

The maximum hours of labor per man per week shall be forty 
hours. 

Economic Eetect or the Code 

The Gasoline Pump Manufacturing Industr}^ is one of the smaller 
industries in the United States with only about 3,000 employees. 

The minimum wage now paid is 300 per hour. The provisions 
of the Code will raise the wage to 400 per hour, resulting in an 
increase in the pay roll of approximately 20 percent. 

The Code has no provisions for regional or sex differentials. 

The maximum hours at present do not generally exceed 40. Ap- 
proving a 40-hour week under this Code will obviously add few 
employees to the pay roll. However, in order to reabsorb the unem- 
ployment in this industry it would be necessary to reduce the hours 
of employment to less than thirty per week. As a practical, work- 
able proposition this would be decidedly unfair to the industry 
because — 

(1) Some of the plants produce other products which are already 
governed b}^ other 40-hour codes and shift their labor between the 
different types of production. 

(2) Most of the plants are in localities where the maximum of 
labor in other outstanding plants is governed by 40-hour codes. 

(350) 



351 

Reducing the hours to a point where the weekly earnings of em- 
ployees in this industry w^ould not offset those of workers under 
other 40-hour codes in the same locality would infringe on the avail- 
able labor supply for this industry. 

Under present conditions for practical considerations the reab- 
sorption of the un.employed in this industry is practically impossible. 

Findings. — The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including without limita- 
tion, subsection (a) of Section 7, and subsection (b) of Section 10 
thereof; and that — 

(b) The Association imposes no inequitable restrictions on ad- 
mission to membership therein and is truly representative of the 
Gasoline Pump Manufacturing Industry; and that — 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or oppress small enterprises and will not operate 
to discriminate against them, and will tend to effectuate the policy 
of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

GASOLINE PUMP MANUFACTURING INDUSTRY 



To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following is established as a Code of Fair Com- 
petition for the Gasoline Pump Manufacturing Industry. 

I. Definitions 

The term " Gasoline Pump Manufacturing Industry " is defined to 
mean the manufacture and sale by the manufacturers of dispensing 
gasoline pumps of the meter, visible or blind types, operated either 
by hand or power ; kerosene tanks in unit combination ; low-pressure 
grease pumps and oil pumps and other low-pressure lubricating 
outfits for transmissions and differentials ; hand trucks for carrying 
portable outfits for dispensing gasoline, kerosene, grease, oil, and 
other petroleum products; and other equipment used in the dis- 
pensiug of these products for consumjotion. 

II. Minimum Wage 

On and after the effective date the minimum wage that shall be 
paid by any employer in the Gasoline Pump Manufacturing Indus- 
try to any emploj^ee, regardless of whether the employee is com- 
pensated on the basis of a time rate, piecework performance, or 
otherwise, shall be at the rate of forty cents (40^) per hour foi- forty 
(40) hours of labor: Provided, however, that where a State law 
fixes a higher minimum wage than that herein set forth, then, and 
in such case, no employee shall receive a lower wage than that fixed 
by such State law. 

The existing amounts by which wage rates in the higher-paid 
classes exceed wages in the lower-paid classes shall be maintained. 

III. Hours of Labor 

The maximum hours of labor per man per week shall be forty 
(40) hours. 

IV 

On and after the effective date no member of this industry shall 
employ or have in his employ any person under the age of 16 j^ears; 
and further provided that no person under 18 years of age sliall be 
employed or permitted to work on or in connection with metal-work- 
ing machines : Provided, however, that where a State law specifies a 
higher minimum age no member of this industry shall employ 
within that State a person below the age specified by such State law. 

(352) 



I 



353 
V 



As required by Section 7 (a) of Title I of the Natioiical Industrial 
Recovery Act, it is provided : 

" (1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection; 

" (2) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union 
or to refrain from joining, organizing, or assisting a labor organiza- 
tion of his own choosing; and 

'' (3) That employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of emplojanent, 
approved or prescribed by the President." 

VI. Sta>-dards 

Nothing in this section shall apply to or affect in any way con- 
tracts between members of the Gasoline Pump Manufacturing Indus- 
try and others in existence prior to the effective date of this Code. 

1. All contracts for the sale of equipment covered by this Code 
shall contain a definite and true statement of price, quantity, terms 
of payment, place of delivery, date, name of purchaser, and all other 
items necessary to form a complete contract. Further, that all con- 
tracts shall state that all the terms and conditions contained therein 
are in conformity with the letter and spirit of this Code. 

2. Each manufacturer in the industry shall, immediately follow- 
ing the effective date of this Code, cancel all options, quotations, 
and guaranteed prices outstanding on such date, insofar as such 
cancelation can lawfully be effected. 

3. All invoices shall contain a full statement of all the facts neces- 
sary to make such an invoice a complete actual record of the trans- 
action represented on the face thereof. 

4. Conditions and terms of sale for the equipment covered by 
this Code shall be as follows : 

(a) 30 days net; not in excess of 2 percent for cash in ten days 
from date of invoice; or 90 days, provided that not less than 25 
percent of the purchase price accompanies order and the remainder 
is payable in three equal monthly payments thereafter; or six 
months, provided that not less than 20 percent of the purchase price 
accompanies the order and the remainder divided into six equal 
monthly installments, Avith a carrying charge of 5 percent of the 
unpaid portion ; or twelve months, provided that not less than 20 
percent of the purchase price accompanies the order and the re- 
mainder divided into twelve equal monthly installments, with a 
carrying charge of 7 percent of the unpaid portion. No terms 
longer than twelve months shall be allowed. Allowance for un- 
earned carrying charges when installment accounts are paid before 
maturity may be made. 



354 

(b) Except for bona fide test or demonstration purposes, no 
equipment covered by this Code shall be loaned, leased, consigned, 
given away, or sold on a l3asis of payment governed by the gallonage 
dispensed or on terms other than those agreed upon above. 

(c) The following standard guarantee : 

The manufacturer guarantees all parts of the equipment shipped 
under this agreement for one year and no more from date of invoice 
thereof against defective material or workmanship (but not against 
damage caused by accident, abuse, or faulty installation) when the 
equipment is installed in accordance with the manufacturer's specifi- 
cations, and will repair or replace free of charge (F.O.B. factory) 
all such defective parts if returned to the factory, charges prepaid. 
The manufacturer s liability for damages caused by any such defec- 
tive parts shall be limited to such repair or replacement and in no 
event shall the manufacturer be liable for indirect or consequential 
damage. 

VII 

The following are declared to be unfair trade practices and are 
prohibited : 

(a) The payment or allowance of secret rebates, refunds, credits or 
unearned discounts, commissions to customers, or their employees, 
whether in the form of money or otherwise, or the extension of serv- 
ices or privileges to certain purchasers not extended to all purchasers 
under like terms and conditions, 

(b) Discrimination in price of equipment covered by this Code 
between purchasers of the same class; provided, however, that noth- 
ing in this rule shall be construed to prevent the publication and 
use of the quantity discount specified herein; and provided further, 
that nothing herein contained shall prevent any member of the in- 
dustry engaged in selling goods from selecting their own customers 
in bona fide transactions. 

(c) The inducing or attempt to induce the breach of a contract 
between a competitor and his customer. 

(d) The variable practice on the part of sellers of requiring pur- 
chasers in some instances to pay published freight and/or warehouse 
charges and in other instances of assuming such charges. 

(e) Quoting a total price of any schedule of equipment covered 
by this code which does not show unit prices and any addition or 
deduction on any other basis than the imit price shown. 

(f) The making of contracts, blanket orders, or other commit- 
ments guaranteeing prices except for firm orders for definite quan- 
tities for delivery within ninety (90) days from date of order. In 
each such case the order must stipulate that it is not cancellable and 
that any equipment not ordered out at the end of the period shall be 
billed to, and paid for by, the customer. 

(g) The unreasonable trade-in on purchase or any other form of 
unreasonable allowance for used equipment. 

(h) The authorizing or permitting of the refunding by commis- 
sioned salesmen of all or any part of their commission to any 
customer. 



355 

(i) The making of any allowance for installation by a manufac- 
turer either directly or through his authorized representative, jobber, 
or commission salesman. 

VIII 

The following practices affecting the seller's product are declared 
to be unfair methods of competition and are condemned by the 
industry : 

(a) The marking, branding, or failure to mark or brand a prod- 
uct for the purpose or with the effect of misleading or deceiving 
purchasers, or prospective purchasers, with respect to the quantity, 
quality, size, grade, or substance of product purchased. 

(b) The publication or circulation concerning any member of the 
Industry, of any false, misleading, or deceptive statement by way of 
advertisement or otherwise as to the grade, quality, quantity, charac- 
ter, composition, or origin of the product. 

(c) The sale or offer to sell any product with intent to deceive 
purchasers or prospective purchasers with respect to the quantity, 
quality, size, grade, or substance of such product. 

IX 

No member of the Gasoline Pump Manufacturing Industry shall 
sell or exchange any product of the industry at a price below his own 
individual cost of i:)roduction as determined by a standard cost 
accounting system, to be set up by the Executive Committee for the 
Gasoline Pump Manufacturing Industry, subject to the approval and 
supervision of the Administration. 

(a) Pursuant to the above provisions, the Executive Committee 
shall endeavor to develop and submit to the xidministrator for ap- 
proval within 120 days after the effective date of this Code a uniform 
system of cost accounting designed to make possible the accurate 
determination by each member of the industry of his own individual 
cost of production. 

Upon approval by the Administrator of such system of cost 
accounting, complete advice concerning it shall be distributed by the 
Executive Committee to all members of the Gasoline Pump Manu- 
facturing Industry. Thereafter, no member of the industry shall 
sell or exchange any product of tlie industry at a price below his own 
individual cost. 

(b) Since it has been the general, recognized practice of the Gaso- 
line Pump Manufacturing Industry to sell its products on the basis 
of printed net price lists, or price lists Avith discount sheets and fixed 
terms of payment which are distributed to the trade, each manu- 
facturer shall, within five days after the effective date of this Code, 
file with the Executive Committee of the Gasoline Puni]) Manufac- 
turing Industry a net price list or a price list and discount sheet 
as the case may be, individually ]:)repared by him, showing his cur- 
rent prices, or prices and discounts, and terms of i:)ayment, and the 
Executive Committee shall immediately send copies thereof to all 
known manufacturers of the Industry. Revised price lists, with or 
without discount sheets, may b? filed from time to time thereafter 



356 

with the Executive Committee by any manufacturer in the industry 
to become effective upon a date specified by such manufacturer in 
the industry, which date shall be not less than 10 days after the 
filing of such revised prices at tlie ofRce of the Executive Committee 
and copies thereof with notice of the effective date specified shall 
be immediately sent to all known manufacturers of the Industry 
who thereupon may file, if they so desire, revisions of their price 
lists and/or discount sheets, which, if filed not less than five days 
previous to such effective date, shall take effect upon the date when 
the revised price list or discount sheet first filed shall go into effect. 
If the Executive Committee shall determine that any manufacturer 
in the industry is not now selling its products on the basis of price 
lists, with or without discount sheets, with fixed terms of payment 
and that a system of selling on net price lists or price lists and dis- 
count sheets should be put into effect, then such manufacturer within 
ten (10) days after notice of the decision of the Executive Committee 
under this paragraph shall file with the' Executive Committee net 
price lists, or price lists with discount sheets, containing fixed terms 
of payment; such price lists and/or discount sheets and terms of 
payment may be revised in the manner hereinabove provided. How- 
ever, it is provided that the determination of the Executive Com- 
mittee as aforesaid shall be subject to the approval of the Admin- 
istrator. 

(c) No manufacturer in the industry shall sell any product of the 
industry at prices loAver or discounts greater or on more favorable 
terms of payment than the approved schedule of such manufacturer 
on file at the office of the Executive Committee as above provided, 

(d) It is hereby provided that the operation of the foregoing pro- 
visions in regard to price lists shall at all times be subject to the 
approval of the Administrator and, if it is the belief of the Execu- 
tive Committee or of any manufacturer in the industry that any price 
list submitted represents sales below the cost of production of the 
manufacturer submitting same, the date of effectiveness of such list 
shall automatically be delayed an additional ten days in order that 
an investigation may be made to determine the propriety of such 
objection. If it is found that any price list represents figures below 
the cost of production as defined by the Executive Committee and 
approved by the Administrator, the quotations shall be withdrawn 
and revised prices submitted. 

X. Administration 

With a view to keeping the President of the United States and 
the Administrator informed as to the observance or nonobservance 
of this Code, and as to whether the Gasoline Pump INIanufacturing 
Industry is taking appropriate steps to effectuate in all respects the 
declared policy of the National Industrial Recovery Act, the Execu- 
tive Committee of the Gasoline Pump Manufacturing Industry is 
hereby constituted and shall be composed of five members, chosen 
by a fair method of selection and approved by the Administrator., 
Each employer shall file with the Secretary of the Executive Com- 
mittee statistics covering the number of employees, wage rates, em- 



357 

ployee earnings and hours of work, and, upon the request of the 
Executive Committee, subject to the approval of the Administrator, 
copies of invoices and all books or records pertaining thereto and 
such other data or information as may be from time to time required 
by the Administrator or by the Executive Committee, subject to the 
approval of the Administrator. 

Except as otherwise provided in the National Industrial Recovery 
Act, all statistics, data, and information filed in accordance with the 
provisions of Article X shall be confidential, and the statistics, data, 
and other information of one employer shall not be revealed to any 
other employer except insofar as may be necessary for the effective 
administration and enforcement of this Code. 

X-A 

Where the costs of executing contracts entered into in the Gasoline 
Pump Manufacturing Industry prior to the Approval of tlie Presi- 
dent of the United States of this Code are increased by the applica- 
tion of the provisions of that Act to the industry, it is equitable and 
promotive of the purposes of the National Industrial Recovery Act 
that appropriate adjustment of such contracts to reflect such in- 
creased costs be arrived at by arbitral proceeding or otherwise, and 
the Gasoline Pump Manufacurers Association, the applicant for this 
Code, is constituted an agency to assist in effecting such adjustments. 

XI 

Any employer may participate in the endeavors of the Executive 
Committee of the Gasoline Pump Manufacturing Industry relative 
to the revisions or additions to the Code by accepting the proper 
pro-rata share of the costs and responsibility of creating and 
aflministering it. 

XII 

This Code, and all the provisions thereof, are expressly made sub- 
ject to the right of the President, in accordance with the provision of 
section 10 (b) of the National Industrial Recovery Act, from time to 
time to cancel or modify any order, approval, license, rule, or regu- 
lation, issued under Title I of the said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

XIII 

Such of the provisions of this Code as Tire not required to be in- 
cluded therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. They shall remain in 
effect unless and until so modified or eliminated or until the expira- 
tion of the Act. It is contemplated that from time to time suj^ple- 
mentary provisions to this Code or additional codes will be submitted 
for the approval of the President, to prevent unfair competition in 



358 

price and other unfair and destructive practices and to effectuate 
the other purposes and policies of Title I of the National Industrial 
Recovery Act consistent with provisions thereof. 

XIV 

This Code of Fair Competition shall become effective on the ap- 
proval of same by the President of the United States. 

The undersigned do hereby certify that the foregoing is a true 
copy of the Code of Fair Competition for the Gasoline Pump Manu- 
facturing Industry, submitted to the Administrator under the Na- 
tional Industrial Recovery Act, as amended by authority of the 
Executive Committee of the Gasoline Pump Manufacturing 
Industry. 

Nelson fci. Talbott, 
President^ Gasoline Pump Manufacturers^ Assn. 

G. Denny Moore, 
Secretary., Gasoline Pump Manufacturers'^ Assn. 
September 7, 1933. 



Approved Code No. 26. 
Registry No. 1326/01. 



O 



r 



Approved Code No. 27 
CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE BAG INDUSTRY 

As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Textile Bag- Industry, and hearings hav- 
ing been held thereon and the Administrator having rendered his 
report containing an analysis of the said Code of Fair Competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions 
of Title I of said Act and that the requirements of clauses (1) and 
(2) of Subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved July 16, 1933, 
and otherwise, do adopt and approve the report, recommendations 
and findings of the Administrator and do order that the said Code 
of Fair Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A djiiinistrator. 

The White House, 

Septemher IS, 10S3. 

29909—296-143 34 (361) 



September 15, 1933. 
To the President: 

This is a report of the Hearing on the Code of Fair Competition? 
for the Textile Bag Industry in the United States, conducted in Koom 
2062, Department of Commerce Building in Washington, p.C, on. 
August 31, 1933, in accordance with the provisions of the National 
Industrial Eecovery Act. 

In accordance with the customary procedure every person who. 
filed an appearance was freely heard in public, and all statutory and. 
regulatory requirements were complied with. 

The Code which is attached was presented by duly qualified and 
authorized representatives of the Industry, complying with the stat- 
utory requirements, as representing 80% of the capacity of the- | 
Industry. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The Textile Bag Industry includes the manufacture of a general 
line of bags made from cotton cloth purchased in this country and 
imported from India, for the manufacturer's own use or for sale. 
Such bags are used almost entirely as shipping containers and to a. 
very large extent for agricultural products. 

Over 90% of the cotton bags and probably over 75% of the burlap 
bags produced by our industry are printed with the buyer's brand 
applying to the product for which he uses the bag as a shipping- 
container. 

It is estimated that more than 90% of the output of the Textile- 
Bag Manufacturing Industry is used by producers of agricultural 
products or derivatives thereof, or by producers of other products- 
subject to extraordinaiT seasonal demand. For this reason the rate 
of production fluctuates during the year with a peak rate of approx- 
imately^ 150% of the annual average, and a slack rate of approxi- 
mately 70% of the annual average. 

It is estimated that approximately 35 concerns comprise the Tex- 
tile Bag Industry, based on a careful analysis of all concerns known 
to have manufactured textile bags with the exception of those 
manufacturers — 

(a) Primaril}^ engaged in conditioning and resale of second-hand 
bags ; 

(b) Incidentally engaged in making textile bags as a part of 
other principal activities such as awning and tent manufacturing^ 
etc.; 

(c) Engaged in the manufacture of special bags such as coffee-urn 
bags, tea bags, tobacco bags, cotton pick sacks, and small cotton 
mailing bags not usually considered a part of, or competitive with 
the general line of textile bags. 

About 60% of the employees in the Industry are women. 

(362) 






363 

The industry reports that employment in the Textile Bag In- 
'dustry is now approximately 88.5% of the 1929 peak of employment 
as compared with only 58% for all manufacturing industries, as 
reported by the National Industrial Conference Board. 

In 1928 and 1929 the Textile Bag Industry gave employment to 
approximately 9,700 individuals with a plant operation of 49.4 
hours per week. Today there are approximately 8,700 employees 
and an average plant operation of 47.5 hours per week. 

The percentage of the 1933 pay roll to the 1929 pay roll for the 
Textile Bag Industry was 66%. and in all manufacturing industries, 
was 36%. 

The average wage during 1933 to the average wage during 1929 
in the Textile Bag Industry was 76% and in all manufacturing 
industries was 60%. 

Size of tJie Industry. — The aggregate invested capital (estimated) 
is as follows : 

1928 $45. 000, 000 

1930 45. 000, 000 

1932 45, 000', OOO 

1933 45, 000, 000 

The aggregate number of employees (estimated) was as follows: 

1928 9, 710 

1930 9,700 

1932 8, 400 

1933 8, 700 

The aggregate production capacity (estimated) is as follows : 

1928 222, 000, 000 

1930 179, 000, 000 

1932 127, 000, 000 

The aggregate annual sales in dollars (estimated) was as follows: 

1928 $148, 000, 000 

1930 119, 000, 000 

1932 68, 000, 000 

The statistical position of the industry has fairly been represented 
by them. 

THE CODE 

For the establishment of minimum wage rates in the industry the 
United States has been divided into two sections, the North and the 
South. The line of division is that established by the Cotton Textile 
Industry. 

The minimum wages at the rate of $13 per week in the North and 
$12 per week in the South are identical with those established in 
the Cotton Textile Industry. Because of the fact that a number of 
textile bag manufacturers operate their own cotton mills, that many 
of the bag manufacturing plants are located in textile areas, and 
that the class of labor in the textile bag industry is similar to that 
in the textile industry, it is clearly evident that the labor conditions 
should be substantially the same. 

This code provides that productive machinery shall not be oper- 
ated in excess of two shifts of 40 hours each per week. 



364 

The code provides for a 40-hour week for employees with a 48- 
hour maximum during the peak season, which is not to exceed 8- 
weeks in any 1 year. 

For the administration of the code there is established a Control 
Committee duly set up in fairness to the entire industry. 

The provision for Trade Practice Kules contained in this code 
should to a great degree correct certain evils that have existed and 
that have developed in the industry. 

For several months prior to the date of hearing the textile bag 
industry held numerous meetings, the purpose of which was to 
prepare and adopt a code satisfactory to all manufacturers in the 
industry. 

Unfortunately, from time to time some manufacturers took excep- 
tion to certain provisions of the code. After considerable work and 
effort, however, a uniform code was developed so that on the day 
before the hearing date all exceptions and protests were withdrawn 
while five unassociated manufacturers joined the Textile Bag Manu- 
facturers Association. 

Thus was shown an unusual spirit of fairness and a spirit of give 
and take in finally reaching agreement, thereby formulating a code 
equitable to all and conforming to the purposes of the Act. 

The Administrator finds that — 

(a) The Code as revised complies in all respects with the pertinent 
provisions of Title I of the Act including, without limitations, 
subsection (a) of Section 8 and subsection (b) of Section 10 thereof; 
and that 

(b) The Textile Bag Industry imposes no inequitable restrictions 
upon admission to membership therein and are truly representative 
of the Textile Bag Industry. 

(c) The Code is not designed to eliminate or oppress small enter- 
prises and will not operate to discriminate against them, and will 
tend to effectuate the policy of Title I of the National Industrial 
Recovery Act. 

Accordingly, I recommend the approval of the Code of Fair Com- 
petition for the Textile Bag Industry. 
Respectfully submitted. 

Hugh S. Johnson, 

A dfninistrator. . 



CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE BAG INDUSTRY 

PREAMBLE 

To effectuate the policy of Title I of the National Industrial 
Recovery Act during the period of emergency, the following pro- 
visions are established as a Code of Fair Competition for the Textile 
Bag Industry. 

Article I — Definitions or Terms 

(a) The term " textile bag industry ", when used in this Code, 
includes the manufacture of a general line of bags made from new 
cotton and new burlap woven cloth for the manufacturer's own use 
or for sale. 

(b) The term " employers " shall mean all who employ labor in 
the conduct of any branch of the textile bag industry as defined 
above. 

(c) The term "employees", as used herein, shall include all per- 
sons employed in the conduct of the textile bag industry. 

(d) The term " productive machinery " as used herein, is defined 
to mean sewing machines and/or printing presses, baling presses, 
turning machines and all other productive machinery used in the 
Textile Bag Industry. 

(e) The term " learner " as used herein shall mean an employee 
engaged in any process of the industry requiring skilled labor with 
less than eight (8) weeks' experience in the same or any comparable 
process. 

(g) The term " effective date " as used herein, is defined to mean 
the second Monday after the approval of this Code by the President 
of the United States. 

Article II — Labor Provisions 

The textile bag industry will comply with the following specific 
provisions of the National Industrial Recovery Act. 

(a) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

(b) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union or 
to refrain from from joining, organizing, or assisting a labor organ- 
ization of his own choosing; and 

(365) 



366 

(c) That emploj-ers shall comply with the maxmium hours of 
labor, minimum rates of pay, and other conditions of employment, 
approved or prescribed by the President. 

Article III — Regulations of Hours or Work 

(a) (1) No employee except emergency maintenance and repair 
crews, engineers, electricians, firemen, supervisory staff, shipping- 
crews, watching crews, outside crews, and cleaners shall work more 
than forty hours per week, or more than eight hours in any twenty- 
four hour period, provided, however, that during peak seasons (not 
to exceed eight weeks in anj' one year) employees may work not more 
than forty-eight hours per week. 

(2) The Control Committee hereinafter provided for in Article 
VI. shall prepare and submit to the Administrator by January 1, 
1934, a report on the hours of labor for cleaners and outside 
employees. 

(b) No productive machinery shall be operated for more than two 
shifts of forty hours each per week. 

Article IV — Minimum Wage Rates 

(a) For the purpose of determining minimum wages, the industry 
shall be divided into the following two sections : 

(1) The States of Maryland, A^irginia, West Virginia, North Caro- 
lina, South Carolina, Georgia, Florida, Alabama, Mississippi, Ten- 
nessee, Kentucky, Louisiana, Arkansas, Oklahoma, Texas, and the 
District of Columbia, shall constitute the " Southern Section." 

(2) All other states of the United States shall constitute the 
" Northern Section." 

(b) On or after the effective date, no employee, except learners, 
sweepers, elevator men, yard men, hand truckers, and infirm or physi- 
cally handicapped employees, shall be paid less than the rate of 
twelve dollars per week when employed in the southern section of 
the industry, or less than the rate of thirteen dollars per week when 
employed in the northern section, for forty hours of labor. 

Learners, sweepers, elevator men, ja.rd men, and hand truckers 
shall be paid not less than eighty percent of the minimum wage set 
forth in this section. 

At no time shall more than ten percent of the total employees be 
classified as learners and at no time shall more than five percent of 
the total employees be classified as infirm or physically handicapped 
employees. 

(c) Although excepted from maximum-hour provisions, repair- 
shop crews, engineers, electricians, and watching crews will be paid 
time and one third for overtime. 

(d) Employers shall not reduce the compensation for employment 
now in excess of the minimum wages hereby agreed to (notwithstand- 
ing that the hours worked in such employment may be hereby 
reduced) and shall increase the pay for such employment by an equi- 
table readjustment of all pay schedules. This clause shall be con- 
strued in the same manner as paragraph 7 of the President's Reem* 



367 

ployment Agreement has been interpreted by the National Recovery 
Administration in Interpretations Nos. 1 and 20, and subsequent 
interpretations. 

Article V — Prohibition of Child Labor 

No employer in the textile-bag industry shall employ any minor 
under the age of sixteen years ; provided, however, that when a State 
Law specifies a higher minimum age, no person below the age so 
specified by such law shall be employed within that State. 

Article VI — Admixistratiox 

(a) To effectuate further the policies of the National Industrial 
Recovery Act a Control Committee is hereby designated to cooperate 
with the Administrator as a planning and fair practice agency for 
the textile-bag industry. This committee shall consist of the mem- 
bers of the Executive Committee of the Textile Bag Manufacturers 
Association, one representative to be elected by companies engaged 
in the textile-bag industry who are not members of the Textile Bag 
Manufacturers Association, and such governmental representatives, 
without vote, as shall be appointed by the President of the United 
States. Such agency may from time to time present to the Admin- 
istrator recommendations based on conditions in the textile-bag in- 
dustry as they may develop from time to time which will tend to 
effectuate the operation of the provisions of this Code and the policy 
of the National Industrial Recovery Act. 

(b) The Control Committee is also set up to cooperate with the 
Administrator in making investigations as to the functioning and 
observance of any provisions of this Code, at its own instance or on 
complaint by any person affected, and to report the same to the 
Administrator. 

(c) The Control Committee may recommend that the Administra- 
tor of the National Industrial Recovery Act require registration by 
persons engaged in the textile bag industry of their productive ma- 
chineiy. The Committee may also recommend that no installation 
of additional productive machinery, except for replacement of a 
similar number of existing machines, be permitted by anyone, unless 
the Administrator shall find that the installation of such additional 
machinery will tend to effect the policy of the National Industrial 
Recovery Act and shall give his approval thereto. 

(d) Recommendations of the Control Committee shall upon ap- 
proval by the Administrator after such public notice and hearing 
as he may specify become operative as part of this Code. 

(e) The Control Committee shall from time to time collect such 
reports from those engaged in the textile bag industry as the Control 
Committee, subject to the approval of the Administrator, may require 
in order to effectuate the administration and enforcement of the 
provisions of this Code. 

(f ) Any employer may participate in the endeavors of the Textile 
Bag Manufacturers Association relative to the revisions or additions 
to or administration of this Code by accepting the proper pro rata 



368 

share of the cost and responsibility of creating and administering 
it, either by becoming a member of said Association or by paying 
to it an amount equal to the dues from time to time provided to be 
paid by a member in like situation of the Textile Bag Manufacturers 
Association. 

Article VII — Trade Practice Rules 

Section 1. After such time as the Control Committee, subject to 
the approval of the Administrator, shall determine those items that 
shall be used in determining costs, it shall be an unfair method of 
competition for a manufacturer to sell his product at less than his 
cost of production, which shall include the items specified by the 
Control Committee. 

The cost of raw material, namely, cotton cloth and burlap, shall 
be computed on the basis of the replacement cost. In case of burlap, 
spot, afloat or future shipment as the case may be for the shipment 
period from the bag factory of bags sold, prevailing as of the date 
of sale. Replacement cost may be transmitted by the Secretary of 
the Association to its members and non-members, by telegraph or 
mail, as changes occur. 

Sec. 2. Price Lists: Each member shall publish his price lists on 
cotton flour, meals, and feed bags which shall clearly state the 
terms and conditions under which the bags are to be sold by him. 
The price lists so published shall be maintained by him and any de- 
viation by him from such published price lists shall be considered 
an unfair trade practice and is in violation of this Code. 

Sec. 3. A purchaser shall not have the right, either expressly or 
tacitly, to cancel or amend any order for merchandise, without proper 
reimbursement. 

Sec. 4. Merchandise shall not be sold on the basis of a guarantee 
against decline. 

Sec. 5. Orders and contracts shall specify quantities, prices and 
delivery dates, and shall be binding alike upon both buyer and seller. 

Sec. 6. Manufacturers shall not book orders with their customers 
immediately prior to making an advance and for the purpose of 
favoring such customers. 

Sec. 7. Manufacturers shall not announce price advances to sales- 
men or special purchasers prior to the effective date of such advances, 
nor shall they after they have advanced their prices allow certain 
purchasers to book bags at prices in effect just prior to the advance. 

Sec. 8. Quoted terms as to quantity differentials shall be lived 
up to and all purchasers shall be treated in identically the same 
manner with respect to quantity differentials. No purchaser shall 
receive the benefit of larger quantity prices on shipments covering 
smaller quantities where other purchasers do not receive the same 
treatment. 

Sec. 9. Manufacturers shall not list special or extra charges, 
such as charges for back printing, all over-printing, etc., and then 
refund or rebate to certain purchasers such charges unless all pur- 
chasers are treated on exactly the same basis with respect to this 
practice. 



369 

Sec. 10. The effecting of adjustment or claims with purchasers of 
textile bags in such manner as to grant secret allowances, secret 
rebates, or secret concessions, creates in effect price discrimination 
and is a violation of the Code. 

Sec. 11. In the event of a change in price of textile bags, the 
giving in any form of adjustments, allowances, discounts, credits, 
or refunds to purchasers or sellers of bags, for the purpose or with 
the effect of altering retroactively the price quoted or charged, in 
such manner as to create price discrimination, is a violation of this 
Code. 

Sec. 12. The pre-dating or the post-dating of any invoice or con- 
tract for the purchase or sale of textile bags, except to conform to 
a bona fide agreement for the purchase or sale entered into on the 
pre-date, is a violation of this Code. 

Sec. 13. Terms of sale shall be strictly adhered to. The payment 
or allowance of secret rebates, refunds, credits, or unearned discounts, 
whether in the form of money or otherwise, or extending to certain 
purchasers such services or privileges not extended to all purchasers 
under like terms and conditions shall be a violation of this Code. 

Sec. 14. Attempts to purchase business or obtain information 
concerning a competitor's business by gifts or bribes shall be a 
violation of this Code. 

Sec. 15. The making of, causing or permitting to be made, any 
false or deceptive statements, either written or oral, of or concerning 
the business policy of a competitor, his product, selling price, finan- 
cial, business or personal standing, shall be a violation of this Code. 

Sec. 16. Inducing or attempting to. induce by any means or device 
whatsoever, the breach of contract between a competitor and his 
customer during the term of such contract shall be a violation of this 
Code. 

Sec. 17. When a manufacturer has made a quotation on bags, 
such quotation shall stand and be final and not be changed unless 
justified by a change in the market for the goods involved. 

Article VIII — General Provisions 

(a) No provision in this code shall be interpreted or applied 
in such manner as to — 

(1) Promote monopolies; 

(2) Eliminate or oppress small enterprise; or 

(3) Discriminate against small enterprises. 

(b) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of Clause 10 (b) of the National Industrial Recovery Act, from 
time to time to cancel or modify any order, approval, license, rule 
or regulation, issued under Title I of said Act, and specifically to 
the right of the President to cancel or modify his approval of this 
Code or any condition imposed by him upon his approval thereof. 

Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes- 



370 



in the circumstances or experience may indicate. It is contemplated 
that from time to time supplementary provisions to this Code or 
additional codes will be submitted for the approval of the President 
to prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate the other purposes and 
policies of Title I of the National Industrial Eecovery Act con- 
sistent with the provisions thereof. 



Approved Code No. 27. 
Registry No. 203/1/01. 

o 



Approved Code No. 28 
CODE OF FAIR COMPETITION 

FOR THE 

TRANSIT INDUSTRY 

As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Transit Industry, and hearings having 
been held thereon and the Administrator having rendered his report 
containing an analysis of the said Code of Fair Competition to- 
gether with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions 
of Title I of said Act and that the requirements of clauses (1) and 
(2) of Subsection (a) of Section 3 of the said Act have been met. 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery x\ct, approved June 16, 1933, 
and otherwise, do adopt the findings and approve the report and 
recommendations of the Administrator and do order that the said 
Code of Fair Competition be and it is hereby approved, subject to 
the following conditions : 

(1) In approving the Code of Fair Competition for the Transit 
Industry, it is to be understood that paragraph 2 of Article VII, 
refers to all labor agreements arrived at by collective bargaining 
and that as to the language of this paragraph, the approval shall 
be construed to mean that existing labor contracts between members 
of the industry and employees may be continued in effect to their 
various expiration dates, unless modified by mutual agreement, but 
are not incorporated as a part of the Code. Where the provisions 
of any such expiring contracts include extensions or renewals thereof 
by arbitration or otherwise, such provisions may have the same force 

I 20841 296-144 34 (371) 



372 

and effect as other provisions of such contracts, but in the process 
of extension or renewal of any such contracts, as provided by their 
terms and conditions, no working hours shall be set up which are 
in excess of the maximum allowed in this Code, and the minimum 
wage provisions shall not be less than those provided in this Code. 

(2) The American Transit Association shall as soon as possible- 
after the effective date of this Code amend its Constitution and By- 
laws wherever it may be necessary so that in the judgment of the 
Administrator there will be no inequitable restrictions imposed on. 
membership in the Association. 

FKANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

Septemler 18, 1933. 



\ 



September 15, 1933. 
The President, 

The White House. 
My Dear Mr. President : I have the honor to submit and recom- 
mend for your approval the Code of Fair Competition for the 
Transit Industry. 

An analysis of the provisions of the Code has been made by the 
Administration. I find that the Code complies with the require- 
ments of Clauses 1 and 2, Subsection (a) of Section 3 of the National 
Industrial Recovery Act. 

I am, my dear Mr. President, 
Very sincerely yours, 

Hugh S. Johnson, 

Administrator. 
(373) 



CODE OF FAIR COMPETITION 

FOR THE 

TRANSIT INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted by the Ameri- 
can Transit Association on behalf of and for the Transit Industry, 
and upon approval by the President shall be the standard of fair 
competition for this Industry. 

To the end that the Transit Industry may do its part in national 
economic recovery and carry out the purposes set forth above, the 
proponents of this Code represent that it is necessary that this Code 
reflect some of the fundamental natural differences between this 
Industry and production and distribution industries, which are as 
follows : 

1. The Transit Industry generally is unable to pass on to the con- 
sumer increased costs resulting from its effort to carry out the pur- 
poses of the National Industrial Recovery Act, because (a) its rates 
are controlled by State regulatory authority or municipal franchise 
and (b) even if increased fares were permitted, they are now, with 
few exceptions, at the upper economic limit and further increases 
would not produce increased revenue. 

2. Wage rates of transit labor have been reduced less than in 
most other industries, having been decreased an average of less than 
10 percent from the peak levels of 1929-30. Freedom from seasonal 
fluctuation in employment sustains annual employee earnings, and 
voluntary spreading of work has kept unemployment to a minimum. 

3. The operating units within this Industry in general are not in 
competition with each other, and when such competition exists it is, 
with very few exceptions, subject to full regulation by state author- 
ity or municipal franchise. But though regulated as to competition 
within the Industr}^, mass transportation is subject to keen competi- 
tion from automobiles operating for hire as taxicabs, service cars, or 
on a share-expense basis with little or no control by public regula- 
tory bodies. 

Article II — Definitions 

(A) The term '* Transit Industry ", as used herein, shall mean 
and include : 

1. Electric railways and trolley bus lines transporting passengers 
by electric car or trolley bus ; provided that electric railways engaged 
in both intrastate and interstate commerce may operate either the 
intrastate or interstate portions of their business, or both, under this 
Code unless prevented by Federal law. 

2. Automotive buses transporting passengers solely within State 
lines, except when engaged in interstate commerce. 

(374) 



375 

3. Automotive buses transporting passengers in interstate com- 
merce or in both intrastate and interstate commerce where such 
operations are conducted entirely within a single metropolitan area 
or within a group of municipalities when the transportation service 
is essentially urban or suburban in character. 

4. The performance of all service and the transaction of all busi- 
ness incident to the operation of the foregoing facilities. 

(a) No new bus route or bus line or extensions to existing bus 
routes or lines shall be established in interstate commerce without 
also complying with the licensing and rate provisions of any Code 
of Fair Competition adopted for the Motor Bus Industry relating 
thereto ; 

(b) The agency set up by the provisions of Article VI, A-4 hereof, 
shall have jurisdiction to hear and finally decide all disputes in 
regard to a specific route or line being or not being engaged in 
interstate commerce beyond the limitations provided for in para- 
graph 3 of this Article. 

(B) The term "employee", as used herein, includes any person 
engaged in any phase of the Transit Industry, irrespective of the 
method of payment of his compensation or of the nature of his 
interest otherwise, in said Industry. 

(C) The term "person", as used herein, includes, but shall not 
be limited to, natural persons, trusts, trustees, receivers, trustees in 
bankruptcy, partnerships, associations, private corporations, and 
municipal corporations and other governmental agencies to the full 
extent permitted by law. 

(D) The term " member of the Industry ", as used herein, includes 
all employers of the aforesaid employees and any person operating 
a vehicle in the Transit Industry on his own behalf, irrespective of 
whether he be an emploj^er. 

(E) The term "effective date", as used herein, means the four- 
teenth day after this Code shall have been approved by the President 
of the United States. 

(F) Population for the purposes of this Code shall be determined 
by reference to the 1930 Federal Census. 

Article III — ^Maximum Workixg Houes 

On and after the effective date the following employees in the 
Transit Industry shall not work or be permitted to work in excess 
of the following hours in any one week except as hereinafter set 
forth, or as otherwise provided in existing labor agreements : 

Hours 
per tceek 

A. General office employees 40 

B. General shop employees 44 

C. Car house and garage service employees, maintenance. 

track, line, power house, and substation department 
employees 48 

D. Trainmen, bus operators, ticket agents, and related trans- 

portation groups 48 

With an allowance not to exceed 6 hours per week, 
as hereinafter set forth. The Transit Industry recog- 
nizes the desirability of an eight-hour day and 4S-hour 
week, but many of the companies cannot now ask 
their men to accept the reduction in their wages result- 
ing from such a reduction in hours and it is impossible 
for the Industry to assume the burden of an increase 



376 

in the hourly rates of pay to offset such reduction. 
The industry is required to provide practically continu- 
ous service, and a greater part of it for an 18-hour 
period or more each day ; its vehicles must be dispatched 
from car houses or garages singly and not in groups 
leaving at the same instant, and their return is made in 
a similarly irregular fashion, according to the varying 
demands for service. In dividing the work: among this 
class of employees, notwithstanding the fact that every 
effort may be made to equalize the number of hours 
worked, substantial variations in length of runs ( day's 
work for this class of employees) cannot be avoided. 
Therefore employees in this class may work on a gradu- 
ated schedule of hours, providetl that no such employee 
shall be allowed to work in excess of said 48 hours by 
more than 6 hours per week. This provision of maximum 
hours shall be considered as fully complied with if the 
average number of hours per week for any individual 
measured over a six-months' period .shall fall within the 
prescribed maximum. This maximum shall be reached 
by not more than 10 percent of the total number of such 
employees. Members of the Industry shall not increase 
the present hours of labor for trainmen and bus op- 
erators now prevailing except as may be agreed upon in 
connection with existing or new agreements ; provided, 
however, that this shall not prevent increasing hours for 
such trainmen and bus operators as are not receiving a 
reasonable amount of work, but in no event shall the hours 
of labor be increased beyond those prescribed in this Code. 

The maximum-hour provisions of this Code shall not apply to 
emergency crews or during the period of emergencies such as snow- 
storms, floods, fires, or other causes beyond the control of the member 
of the Industry. 

The following classes of employees shall be exempt from the pro- 
visions of this Article and of Article IV of this Code : 

(a) Management, executive, and supervisory employees receiving 
$35.00 or more per week; 

(b) Janitors, Avatchmen. crossing flagmen and gatemen, and those 
employees who are commonly termed " worker-pension " employees. 
This class shall not exceed 5 percent of the total number of employees 
of the member of the Industry. 

Article IV — Minimum Compensation 

The minimum-wage rates except as otherwise provided in existing 
labor agreements, shall be as follows : 

For employees paid on a weekly or a monthly basis, not less than 
$15.00 per week in any city of over 500,000 population, or in the 
immediate trade area of such city; nor less than $14.50 per week in 
any city of between 250,000 and 500,000 population, or in the imme- 
diate trade area of such city; nor less than $14.00 per week in any 
city of between 2,500 and 250,000 population, or in the immediate 
trade area of such city; and in towms of less than 2,500 population 
not less than $12.00 per week. 

The minimum wage for employees compensated on a weekly or 
monthly basis who work less than full time shall be the pro rata 
amount of the minima specified above. 



377 

For employees paid on an hourly rate, not less than 40 cents per 
hour unless the hourly rate for the same class of work on July 15, 
1929, was less than 40 cents per hour, in which latter case not less 
than the hourly rate on July 15, 1929, and in no event less than 
30 cents per hour. 

Where piecework, cooperative or profit-sharing rates exist, the 
total wages paid per week to any employee so working, divided by 
the number of hours actually worked per week by such employee, 
shall be equal to at least the minimum hourly wages prescribed in 
this Article. 

Office boys and girls and messengers, under 21 years of age, and 
apprentices shall be paid not less than 80 percent of the minimum 
wages prescribed in this Code; provided, however, that the number 
of such employees shall not exceed 5 percent of the total number 
of employees of the member of the Industry. 

Article V — Child Labor 

No person under 16 years of age shall be employed in the Transit 
Industry. 

Article VI — Administration 

F To further effectuate the policies of the Act, a Code Authority is 
hereby set up to cooperate with the Administrator in the administra- 
tion of this Code. 

(A) 1. The Code Authority shall consist of seven (7) voting 
members. Not more than three (3) nonvoting additional represent- 
atives may be appointed by the Administrator. One of such voting 
members shall at all times be the President of the American Transit 
Association, and one shall be the Managing-Director of said Associa- 
tion. 

2. The remaining five members shall be elected by a vote of mem- 
bers of the Industry and shall represent the various interests in the 
Industiy. 

The selection of such candidates and the method of electing such 
members shall be subject to approval by the Administrator. At 
least two (2) of said voting members shall be representatives of 
labor, and at least one (1) may be a representative of a member of 
the Industry not holding membership in the American Transit 
Association. 

3. Any trade or industrial association participating in the selection 
or activities of the Code Authority shall impose no inequitable 
restrictions on admission to membership therein, and shall evidence 
compliance with this provision in any manner required by the 
Administrator. 

4. The Code Authority shall, a,s soon as possible after the approval 
of this Code, appoint two (2) individuals who shall jointly with two 
(2) individuals appointed by the Motor Bus Code Authority hear and 
finally determine any question that may be referred to it by the 
Transit Code Authoritj'' as to whether any individual bus opera- 
tion defined in Article II, paragraph A-3, of this Code shall be 
included under this Code. In case the joint board fails or refuses to 



378 

decide within ten (10) days any question submitted, the matter shall 
be referred to the Administrator for final disposition. 

5. An appeal from any action by the Code Authority affecting the 
rights of any person subject to this Code may be taken to the 
Administrator. 

(B) The Code Authority shall have the following duties and 
powers to the extent permitted by the National Industrial Recovery 
Act and subject to review by the Administrator : 

1. To administer the provisions of this Code, secure adherence 
thereto, hear complaints, and otherwise carry out for the Transit 
Industry the purposes of the Act as herein set forth. 

2. To require reports from the members of the Industry with 
respect to wages, hours of labor, conditions of employment, number 
of employees, and other matters pertinent to the purposes of this 
Code, in order that the President may be kept informed with respect 
to the observance thereof. 

3. Equitably to proportion and collect from time to time the cost 
of establishing and maintaining the Code Authority from such mem- 
bers of the Industry who fully participate in the Code by exer- 
cising the right to vote and/or to use the N.R.A. insignia. Only 
such members who participate in the expense of establishing and 
maintaining the Code Authority shall be permitted publicly to 
evidence their participation by displaying the N.R.A. insignia. 

The Code Authority, subject to review by the Administrator, shall 
authorize the use of the N.E..A. insignia to members of the Industry 
according to the provisions of this paragraph. 

4. After consulting the Industry, to make recommendations to the 
Administrator for the revision, modification, or alteration of this 
Code from time to time. 

(C) Whereas it is deemed unfair competition by the Transit In- 
dustry for any type of transportation carrying passengers for hire 
in areas served by members of this Industry to pay substantially 
lower wages or to permit substantially longer working hours than 
those established by this Industry in this Code, the Code Authority 
is hereby empowered to assist in the securing of stay orders and 
exemptions from the Administrator in respect of any area affected 
by unfair competition of a competing industry, to confer with Code 
Authorities of competing industries, to file petitions for the modifica- 
tion of or complaints under the Codes of competing industries, and 
otherwise to take such steps as may be necessary or proper to place 
the Transit Industry on a basis of fair competition. 

Article VII — General 

1. (a) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection ; 

(b) No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing; and 



379 

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President, as provided herein. 

2. Many of the street railway and bus companies which come 
under the provisions of this Code have working agreements with 
their employees through American Federation of Labor Unions, 
which provide the wages, hours of labor, and working conditions, and 
further provide for arbitration in all disputes of any kind that can- 
not be mutually adjusted, practically all of which agreements also 
provide for renewals through mediation and arbitration. It is 
understood and agreed to by the companies under this Code that all 
labor agreements will be lived up to and carried out, and this pro- 
vision is agreed to by representatives of the employees. The em- 
ployees of some of the companies that come under this Code have 
local associations, organizations, or other plans of collective bargain- 
ing. However, it is clearly understood that if either the employees 
under the American Federation of Labor Unions or under the afore- 
said local associations, organizations, or other plans want to change 
their form of organization under the provisions of section 7 (a) of 
the National Industrial Recovery Act, they are at liberty to do so as 
that section provides. 

3. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of Subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said Act. 

4. Within each State, members of the Industry shall comply with 
any laws of such state imposing more stringent requirements, regu- 
lating the age of employees, wages, hours of work, or health, fire, or 
general working conditions than under this Code. 

5. If this Code or any provision thereof, because of peculiar 
circumstances, will create great and unavoidable hardship to any 
member of the Industry, such member in a petition approved by 
the Code Authority may apply for a stay of this Code or such 
provision thereof, pending a summary investigation by the National 
Recovery Administration, if such member of the Industry agrees 
in such petition to abide by the decision of such investigation. The 
refusal of any such approval shall be subject to review by the 
Administrator. 

6. In the case of any member of the Industry also employing 
labor in any other industry, the provisions of this Code shall apply 
to and affect only that part of such member's business which is 
included in the Transit Industry. 

7. This Code shall terminate whenever Title I of the National 
Industrial Recovery Act ceases to be in effect, but not later than 
June 15th, 1935. 

Approved Code No. 28. 
Registry No. 1741/1/08. 

o 



Approved Code No. 29 

CODE OF FAIR COMPETITION 

FOR THE 

ARTIFICIAL FLOWER AND FEATHER INDUSTRY 

As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Flower and Feather Industry, and hearings 
having been held thereon and the Administrator having rendered his 
report containing an analysis of the said Code of Fair Competition, 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions of 
Title I of the said Act and that the requirements of clauses (1) and 
(2) of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said Code of 
Fair Competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 

Hugh S. Johnson, 

Administrator. 

The White House, 

Septemher IS, 1933. 

(381) 



29840 296-145 34 



September 14, 1933. 
The President, 

The White House. 
My Dear Mr. President : I have the honor to submit and recom- 
mend for your approval, the Code of Fair Competition for the Arti- 
ficial Flower and Feather Industry. The code has been approved 
by the Labor Advisory Board, the Consumers Advisory Board, and 
the Industrial Advisory Board. 

An analysis of the provisions of the code has been made by the 
Administration ; and a complete report is being transmitted to you. 
I find that the code complies with the requirements of clauses 1 and 
2, subsection (a) of Section 3 of the National Industrial Recovery 
Act. 

I am, my dear Mr. President, 
Very sincerely yours, 

Hugh S. Johnson, Administrator. 

(382) 



CODE OF FAIR COMPETITION 

FOR THE 

ARTIFICIAL FLOWER AND FEATHER INDUSTRY 

Article I 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Artificial Flower and Feather Industry, 
and upon approval by the President, shall be the standard of fair 
competition for this industry. 

Article II — DEFiNiTioisrs 

1. The term " industry " as used herein includes the manufacture, 
wholesale distribution, and importation of artificial flowers and 
feathers and such branches and subdivisions thereof as may from 
time to time be included under the provisions of this code. 

2. The term " employee " as used herein includes any person en- 
gaged in any phase of the industry, in any capacity, irrespective of 
his method of compensation or interest otherwise in said industry. 

3. The term " employer " as used herein includes anyone for whose 
benefit or on whose business such employee is engaged, and anyone 
engaged in said industry on his own behalf. 

4. The term " persons " as used herein shall include, but shall not 
be limited to, natural persons, trustees, partnerships, receivers, asso- 
ciations, and corporations. 

5. The term " effective date " as used herein shall mean and this 
code shall become effective on the first Monday after this code shall 
have been approved by the President of the United States. 

ARTICI.E III — Hours of Labor 

1. Except as hereinafter provided, no employee shall work, or be 
permitted to work, in excess of forty (40) hours in any one week, or 
more than eight (8) hours in any twenty-four (24) hour period. 

2. Subject to review by the Administrator, the Code Authority 
may designate the hour before which work shall not begin and the 
hour after which work shall not continue, and may determine in 
which localities such regulations shall apply. 

3. No overtime shall be permitted except upon the recommenda- 
tion of the Code Authority and the approval of the Administrator, 
and under such conditions and upon such terms as the Administrator 
may prescribe. 

4. No employee shall work or be permitted to work for a total 
number of hours in excess of the number of hours prescribed for 
each week and day, whether employed by one or more employers. 

(383) 



384 
Article IV — Rates of Pay 



1 



1. No employees shall be paid at less than the rate of fifte 
dollars ($15.00) per week of forty (40) hours. 

2. Apprentices. — (a) No apprentices shall be paid at less than the 
rate of ten dollars ($10.00) per week of forty (40) hours for the 
first six (6) weeks of employment, and thereafter not less than the 
minimum wages provided in Section (1) of this Article. 

(b) If the operation at which any apprentice is engaged has a 
piecework rate and the amount earned at piece rate is more than 
ten dollars ($10.00) per week, such: apprentice shall be paid on a 
piece-rate basis. 

(c) The period of apprenticeship shall be strictly limited to six 
(6) weeks and any time worked by an apprentice shall be deemed 
a part of such apprenticeship period, whether such time is worked 
continuously or in more than one shop or for more than one 
employer. 

(d) The number of apprentices engaged by any one employer 
shall at no time exceed ten percent (10%) of the total number of 
employees engaged by such employer. 

3. No employee shall be paid less than the minimum wages set 
forth in this article, regardless of whether such employee is com- 
pensated on a time-rate or a piece-rate basis. 

4. No employer shall reduce the hourly rate of compensation for 
employment in effect as of July 1, 1933, whether heretofore paid on 
a monthly, weekly, daily, or hourlj^ basis. The hourly rates of pay 
of all employeeswhose hours of employment have been reduced by 
the provisions of this code, but whose wages have not been increased 
by the foregoing sections of this article, shall be increased by an 
equitable readjustment. 

Article V — Minimum Age 

No person under sixteen (16) years of age shall be employed in 
the industry. 

Article VI — Administration 

To further effectuate the purposes of the Act, a Code Authority 
is hereby set up to cooperate with the Administrator in the adminis- 
tration of this code. 

A. (1) The Code Authority shall consist of seven (7) members 
who shall be representative of the various interests in the industry 
and such other interests as the Administrator may designate, and 
shall be appointed by the Administrator. 

(2) Any trade or industrial association participating in the selec- 
tion or activities of the Code Authority shall at all times comply 
with the following requirements : 

(a) It shall impose no inequitable restrictions on membership. 

(b) It shall not violate any rule or regulation prescribed by the 
President of the United States, or any other provisions of the 
National Industrial Recovery Act. 

(c) It shall submit to the Administrator, or his deputy, for 
approval true copies of its articles of association, by-laws, regula- 
tions, and any amendments when made thereto, together with such 



385 

other information as the Administrator may require from time to 
time to effectuate the policies of this Act. 

(3) The Administrator shall entertain complaints and provide such 
hearings as he may deem necessary or proper for those claiming the 
right to be represented on the said Code Authority, a^nd he shall 
have the right from time to time to change the method of selection 
and the organizations selecting the members of the Code Authority 
in order that the Code Authority shall be truly representative of the 
industry, 

(4) An appeal from any action by the Code Authority affecting 
the rights of any person subject to this code may be taken to the 
Administrator, 

(5) Hereafter only employers assenting to this code shall be 
entitled to participate in the selection of the Code Authority and to 
share the benefits of its activities as herein set forth. Any em- 
ployer accepting the benefits of the activities of the Code Authority 
shall pay his proportionate share of the expense of the maintenance 
of the Code Authority and its activities. 

B. The Code Authority shall have the following duties and powers 
to the extent permitted by this Act and subject to review by the 
Administrator : 

(1) To elect officers and assign to them such duties as it may con- 
sider advisable, and to provide rules for its selection by the industry, 
its procedure, and its continuance as the administrative agency of 
this code, in accordance with the terms of the Act and the principles 
herein set forth. 

(2) To administer and enforce the provisions of this code. 

(3) To obtain from time to time from employers in the industry 
reports in respect to wages, hours of labor, conditions of employ- 
ment, number of employees, and other matters pertinent to the 
purposes of this code as the Code Authority may prescribe, and 
to submit periodical reports to the Administrator in such form 
and at such times as he may require, in order that the President 
may be kept informed with respect to the observance hereof. 

(4) To regulate the use of the N.R.A. insignia and to limit the 
same to employers in the industry who have agreed to comply with 
this code, so long as they conform to its provisions. 

(5) To coordinate the administration of this code with such 
other codes, if any, as may be related to the Artificial Flower and 
Feather Industry, or any subdivision thereof, with a view to pro- 
moting joint and harmonious action upon matters of common 
interest. 

(6) To make surveys, to compile reports, to collect statistics and 
trade information, to investigate unfair trade practices, to make 
recommendations for fair-trade practices, to initiate and consider 
proposals for amendments or modifications of this code, and other- 
wise assist the Administrator in effecting the purposes of this code 
and the National Industrial Recovery Act. 

(7) To secure a proportionate payment of the expense of main- 
taining the Code Authority and its activities from those employers 
accepting the benefits of the activities of the Code Authority. 

C, The Code Authority shall study the following matters and pro- 
visions relating to trade practices and the operation thereof, and may 



386 

make recommendations thereon in the form set forth, or as modified, 
to the Administrator. Upon the approval of the Administrator and 
after such hearing as he may prescribe, such recommendations, or any 
part of them, shall become a part of this code and shall have full 
force and effect as provisions hereof. 

(1) False Marking. — The false marking or branding of any prod- 
uct of the industry which has the tendency to mislead or deceive 
customers or prospective customers as to the grade, quality, quantity, 
substance, character, nature, origin, size, finish, or preparations of 
any product of the industry is prohibited as an unfair method of 
competition. 

(2) False Advertising. — The making or causing or permitting to 
be made or published, any false, untrue, or deceptive statement by 
way of advertisement or otherwise concerning the grade, quality, 
quantity, substance, character, nature, origin, size, or preparation of 
any product of the industry having the tendency and capacity to 
mislead or deceive purchasers or prospective purchasers is prohibited 
as an unfair method of competition. 

(3) Terms and Discounts. — The maximum terms that shall operate 
in the following branches of the industry, namely, decorative flowers, 
wax flowers, flowers and feathers manufactured lor the dress, cloak, 
and suit, negligee trade, raw fancy feathers, naturally prepared bo- 
tanical products, and feather dyers, shall be two percent (2%) dis- 
count in ten (10) days c.o.m., or the equivalent thereof; on all other 
manufactured artificial flowers and feathers a maximum discount of 
eight percent (8%) in ten (10) days c.o.m., or the equivalent thereof 
at the rate of six percent (6%) per annum. 

(4) Return of Merchandise. — No merchandise purchased and 
shipped in good faith and in accordance with the buyer's specifica- 
tions may be returned for credit by any purchaser, unless returned 
within three (3) days. 

(5) Selling on Consignment. — No merchandise shall be shipped on 
memorandum or on consignment for sale. 

(6) Gratuities. — The giving of gratuities or gifts to buyers, 
whether in the form of money, goods, or privileges is prohibited. 

(7) Advertising . — Allowance of discounts for advertising or for 
payment for space in newspapers, magazines, guides, or directories 
on behalf of any retailer to be used in promoting the sale of mer- 
chandise to the consumer is prohibited. The supplying of cuts, 
matrices, and window cards shall, however, not be included in such 
prohibition. 

(8) Assignments. — No person shall take or receive from any cus- 
tomer, either before or after the delivery of merchandise, either di- 
rectly or indirectly, an assignment of accounts receivable, or security 
in any form whatsoever, in payment of the purchase price of mer- 
chandise or as security therefor, without first notifying the Code 
Authority that such assignment or security has been or is about to 
be received, nor shall any person assign, sell, transfer, or mortgage 
its accounts receivable or chattels, either directly or indirectly, with- 
out first notifying the Code Authority that such transfer, sale, 
assignment, or mortgage has been or is about to be taken or given. 

(9) F.O.B. Shipments. — All shipments to retailers shall be made 
f.o.b. city of manufacture. 



387 

(10) False InvoiGing. — No sale shall be made by any person upon 
any other terms except as expressly set forth in the order, contract of 
sale, or the invoice pertaining to such sale. 

(11) The regulation of style and design piracy. 

Article VII 

1. Employees shall have the right to organize and bargain collec- 
tively through representatives oi their own choosing, and shall be 
free from interference, restraint, or coercion of employers of labor, 
or their agents, in the designation of such representatives or in self- 
organization or in other concerted activities for the purpose of col- 
lective bargaining or other mutual aid or protection ; 

2. No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing; and 

3. Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

4. This code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sion of Subsection (b) of Section 10 of the National Industrial Re- 
covery Act, from time to time to cancel or modify any order, ap- 
proval, license, rule, or regulation issued under Title I of said Act 
and specifically, but without limitation, to the right of the Presi- 
dent to cancel or modify his approval of this code or any conditions 
imposed by him upon his approval thereof. 

5. Within each state, members of the industry shall comply with 
any laws of such state imposing more stringent requirements, regu- 
lating the age of employees, wages, hours of work, or health, fire or 
general working conditions, than under this code. 

6. No goods shall be manufactured by any employer in any prison, 
prison camp, penitentiary, reformatory, or other penal institutions 
or in any place by means of prison labor. 

7. No work shall be done or be permitted to be done in any base- 
ments, unsanitary buildings, buildings unsafe on account of fire risks, 
or otherwise dangerous. In any state in which buildings used in 
the industry, including dwellings, are subject to inspection by the 
Department of Labor of such state, or of the Government of the 
United States, no work shall be done in such buildings or dwellings 
without the provisions relating to such inspection having first been 
complied with, and proof of such compliance having been supplied 
to the Code Authority. 

8. Any employer who at any time shall manufacture any article 
or articles subject to the provisions of this code, shall be bound by 
all the provisions of this code as to all employees engaged in whole 
or in part in such manufacture. In case any employee shall be en- 
gaged partly in such manufacture and partly in the manufacture of 
goods of another character, this code shall only apply to such por- 
tion of such employee's time as is applied to the manufacture of 
articles subject to this code. 






388 

9. Nothing in this code is designed to promote, nor shall it permit 
monopolies or monopolistic practices ; nor it is designed to, nor shall 
it eliminate, oppress, or discriminate against small enterprises. 

Articles VIII — Homework 

1. No homework shall be permitted after May 1, 1934. Aftei* 
January 1, 1934, no employer shall employ more than fifty percent 
(50%) of the number of homeworkers employed by him as of 
September 1, 1933. 

2. Until May 1, 1934, no work shall be done in any home unless 
and until evidence has been presented to the Code Authority, as 
agent for the Administrator, that all State, municipal, and other 
laws and regulations relating to homework have been complied with 
and unless the names and addresses of such homeworkers and their 
employers shall have been filed with the Code Authority. 

3. The Code Authority shall file with the Administrator a list of 
the names and addresses of all homeworkers emploj^ed in the indus- 
try and shall indicate by whom all such homeworkers are employed. 

4. No homeworker shall be engaged at the same time by more than 
one employer. 

5. All homeworkers shall be paid on the same piece-rate basis as 
factory employees engaged in similar work. 

6. Copies of Articles III, IV, and VIII of this code shall be 
supplied to all homeworkers. 



Approved Code No. 29. 
Registry No. 1603/02. 



o 



Approved Code No. 30 
CODE OF FAIR COMPETITION 

FOR THE 

LINOLEUM AND FELT BASE MANUFACTURING 

INDUSTRY 

As Approved on September 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Linoleum and Felt Base Manufacturing 
Industry, and hearings having been held thereon and the Adminis- 
trator having rendered his report containing an analysis of the said 
code of fair competition together with his recommendations and find- 
ings with respect thereto, and the Administrator having found that 
the said code of fair competition complies in all respects with the 
pertinent provisions of Title I of said Act and that the requirements 
of clauses (1) and (2) of subsection (a) of Section 3 of the said Act 
have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator, and do order that the said Code of 
Fair Competition be, and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 



I 



Approval recommended : 
Hugh S. Johnson, 

Adininistrator. 

The White House, 

September 18, 1933. 

29113° 296—64 34 (389) 



To the President: 

This is a report of the hearing of the Code of Fair Competition 
for the Linoleum and Felt Base Manufacturing Industry, conducted 
in Washington on September 1, 1933, in accordance with the pro- 
visions of the National Industrial Recovery Act. 

CONDUCT OF THE HEARING 

In the conduct of the hearing opportunity to be heard freely in 
public was afforded to every person who had filed a request for 
appearance, and all statutory and regulatory provisions were 
observed. 

The Code which is attached was presented by the duly authorized 
and qualified representatives of the Linoleum and Felt Base Manu- 
facturing Industry, representing, it is claimed, 100 percent of the 
industry. 

No one spoke at the public hearing in protest of any provision of 
the Code proposed for this industry. 

RESUME OF CODE PROVISIONS 

Any member of the industry is eligible for membership in the 
Linoleum and Felt Base Manufacturers' Association, proponents of 
the Code. 

Members of the industry will render to the Administrator reports 
relative to hours of labor, wages, volume of production, and fiinished 
stocks on hand, and such additional reports as may be required. 

The Code provides that no member of this industry shall cause 
or permit any employee, except executives and their personal sec- 
retaries, salesmen, research technicians, foremen, and assistant fore- 
men, to work an average of more than 40 hours per week in any 
26 weeks' period (i.e., not over 1,040 hours in any 26 weeks' period) 
and in no event, except shipping crews including truck drivers, 
more than 48 hours in any one week. In cases of emergency, labora- 
tory technicians and mechanics engaged in repair work shall be 
exempt from the maximum hour limitations. 

No member of this industry shall employ any minor under the 
age of sixteen years. 

The minimum wage to be paid to any employees in this industry 
shall be at the rate of 40 cents per hour for male employees and 
35 cents per hour for female employees. Female labor will re- 
ceive the same pay as male labor for performing the same work 
under similar conditions. 

EFFECT or CODE ON WAGES AND EMPLOYMENT 

The provisions of the proposed Code relating to wages and hours 
were put into effect by every concern in the industry on August 
1, 1933, with the following results: 

(390) 






391 

The number of wage earners increased 55 percent above the 
average number employed during the first six months of 1933. 
More than 2,000 employees were added to the payroll, bringing the 
number engaged in the industry to 5,888, a total that is slightly 
above the average number employed in 1929 in all plants now 
operating. 

The total pay roll per hour for the entire industry increased 82 
percent above the average paid during the first six months of 1933. 

The average wage rate for male factory employees rose 18 percent 
to 511/4 cents an hour. This is 4 percent less than the average wage 
rate in effect in 1929. 

SUMMARY OF OPINIONS ON CODE 

The Code has the approval of the Legal Division of this Admin- 
istration, the Industrial Advisory Board, the Consumers' Advisory 
Board, and the Division of Economic Research and Planning. 

In giving approval of this Code the Labor Advisory Board makes 
a recommendation that statistics on overtime work in this industry 
be required. 

Findings 

I find that : 

(a) The Code complies in all respects with the pertinent provi- 
sions of Title I of the Act, including, without limitation, subsection 
(a) of Section 7 and subsection (b) of Section 10 thereof; and that 

(b) The Linoleum and Felt Base Manufacturers' Association im- 
poses no inequitable restrictions on admission to membership therein, 
and is truly representative of the Linoleum and Felt Base Manu- 
facturing Industry ; and that 

(c) The Code is not designed" to promote monopolies or to elimi- 
nate or oppress small enterprises, and will not operate to discrimi- 
nate against them, and will tend to effectuate the policy of Title I 
of the National Industrial Recovery Act. 

« Recomniendation 

I hereby recommend the approval of the Code of Fair Competition 
for the Linoleum and Felt Base Manufacturing Industry. 
Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

LINOLEUM AND FELT BASE MANUFACTURING 
INDUSTRY 



For the purpose of complying with the provisions of Title I of 
the National Industrial Recovery Act, and effectuating the policy 
of Congress as declared in said Act, insofar as applies to the 
within Industry, the following conditions and principles are adopted 
as a Code of Fair Competition (hereinafter referred to as the 
" Code ") for the manufacturers of Linoleum and Felt Base 
Products. 

Article I — Definitions 

(a) " National Industrial Recovery Act," means the National 
Industrial Recovery Act approved by the President on June 16th, 
1933. 

(b) "Act," means National Industrial Recovery Act. 

(c) " President," means the President of the United States of 
America. 

(d) "Administrator," means the duly appointed representative 
of the President to administer the Industrial Recovery Act. 

(e) "Association," means the Linoleum and Felt Base Manu- 
facturers Association, of New York City. 

(f ) " The Industry," means and includes the business of manu- 
facturing and selling Linoleum and Felt Base Floor Covering 
products. 

(g) " Effective Date," means the second Monday after this Code 
is duly approved by the President. 

Article II — Membership 

Any member of the Industry is eligible for membership in the 
Association, and there shall be no inequitable restrictions on mem- 
bership. The provisions of the Code shall be applicable to all mem- 
bers of the Industry. 

Article III — Cancellation or Modification or Government 

Approval 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of clause 10 (b) of the National Industrial Recovery Act, from time 
to time, to cancel or modify any order, approval, license, rule, or 
regulation issued under Title I of said Act, and specifically to the 
right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

392 



393 

Article IV — Hours of Labor, Minors, Rates of Pay, and Other 
Conditions of Employment 

• Section 1. Hours of labor. — On and after the effective date no 
member of this Industry shall cause or permit any employee, except 
executives and their personal secretaries, salesmen, research tech- 
nicians, foremen, and assistant foremen, to work an average of more 
than 40 hours per week in any 26 weeks' period (i.e., not over 1,040 
hours in any 26 weeks' period) and in no event, except shipping 
crews, including truck drivers, more than 48 hours in any one week. 
Provided that in cases of emergency, laboratory technicians and 
mechanics engaged in repair work shall be exempt from the maximum 
hour limitations above provided. For the purposes of this section, 
the first 26 weeks' period for each emploj^ee in the employ of any 
member of this Industry at the effective date of this Code shall begin 
with that date, and the first 26 weeks' period for any employee there- 
after employed by any member of this Industry shall begin with the 
date of employment of such employee by such member. 

Sec. 2. Minor Labor. — On and after the effective date, no member 
of this Industry shall employ any minor under the a^e of sixteen 
years : Provided, however, that where a State law specifies a higher 
minimum age, no member of this Industry shall employ within such 
State any person below the age specified by such State law. It has 
not been the custom in this Industry to employ child labor. 

Sec. 3. Mini-mum Wage Rates. — On and after the effective date, 
the minimum wage which shall be paid by members of this Industry 
to any employee except office employees, shall be at the rate of 40 
cents per hour for male labor and 35 cents per hour for female labor. 
The above minimum rates of pay shall not in any way be considered 
as a discrimination by reason of sex and where in any case women 
do the same work, or perform substantially the same duties as men 
during the hours that they are legally permitted by State laws to 
be employed they shall receive the same rate of wage as men receive 
for doing such work or performing such duties. The minimum 
wage paid to any office employee shall be at the rate of $14.00 per 
week. Rates paid for hourly labor in excess of the minimum rates 
shall be increased in fair relation to the above minimum hourly 
wage rates. Said minimum hourly wage rates shall be maintained 
regardless of whether the employee is compensated on the basis of 
a time rate or on a piece-work performance : Provided, however, 
that when a State law specifies a higher minimum wage no member 
of this Industry shall employ within such State any person at a 
rate below the wage specified by such State law. 

Sec. 4. Em'ployee organization and har gaining. — (a) Employees 
shall have the right to organize and bargain collectively through 
representatives of their own choosing, and shall be free from the 
interference, restraint, or coercion of employers or their agents, in 
the designation of such representatives or in self-organization, or in 
other concerted activities for the purpose of collective bargaining 
or other mutual aid or protection. 

(b) No employee, and no one seeking employment in the Industry, 
shall be required as a condition of employment, to join any company 
union, or to refrain from joining, organizing, or assisting a labor 
organization of his own choosing. 



394 

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

Article V — Reports, Statistics 

With a view to keeping the President informed as to the func- 
tioning of this Code of Fair Competition, and whether the Industry 
is adopting and maintaining appropriate action to effectuate the 
declared policy of the Act, and to provide for making available to 
the Administrator and members of the Industry information to 
assist in effectuating the policy of the Act, each member of the 
Industry shall furnish to the Administrative Agency hereinafter 
provided for or to the Administrator, re])orts relative to hours of 
labor, wages, volume of production and sales in units and/or dollars, 
and finished stocks on hand. Members of the Industry shall furnish 
such additional reports and data as may be required by the Adminis- 
trator or by the Association subject to the approval of the Adminis- 
trator and otherwise in the form and manner as hereafter may be 
directed by the Administrator or the Association, subject to the 
approval of the Administrator, All of such reports and data shall 
be duly certified if requested by the Administrator or the Association. 

Article VI — Verification of Reports 

All reports required by the Code to be filed with the Association 
shall be subject to verification by a competent and disinterested 
person, at such time or times, and by such person or persons as may 
be determined by the Association, subject to the approval of the 
Administrator. Provided, that if it should appear that any reports 
were not filed when and as required by the Code, or were inaccurate, 
the expense of such verifying work, subject to the approval of the 
Administrator, shall be paid by the member of the Association so 
in default. 

Article VII — Administrative Agency 

The Linoleum and Felt Base Manufacturers' Association is hereby 
designated the Agency to cooperate with the Administrator in admin- 
istering, supervising, and promoting the performance of the pro- 
visions of this Code by the members of the Linoleum and Felt Base 
Industry. 

Article VIII — Amendments 

Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in the circumstances or experience may indicate. It is contemplated 
that from time to time, supplementary provisions to this Code or 
additional Codes will be submitted for the approval of the President 
to prevent unfair competition in price and other unfair and destruc- 
tive competitive practices and to effectuate other purposes and poli- 
cies of Title I of the National Industrial Recovery Act consistent 
with the provisions thereof. 

Approvecl Code No, 30'. 
Kegistry No. 1635/1/01 

o 



Approved Code No. 31 
CODE OF FAIR COMPETITION 

FOR THE 

LIME INDUSTRY 
As Approved on October 3, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Lime Industry, and hearings having been 
held thereon and the Administrator having rendered his report con- 
taining an analysis of the said Code of Fair Competition together 
with his recommendations and findings with respect thereto, and the 
Administrator having found that the said Code of Fair Competition 
complies in all respects with the pertinent provisions of Title I of 
said Act and that the requirements of clauses (1) and (2) of subsec- 
tion (a) of Section 3 of the said Act have been met. 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt the findings and approve the report and recom- 
mendations of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approved, subject to the follow- 
ing condition : 

(1) The National Lime Association shall, as soon as practicable, 
amend its bylaws by repealing that provision M-hich requires that 
election to membership therein is dependent upon the nomination by 
two members and upon the majority vote of the Board of Directors 
of that Association. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

October 3, 1933. 

(397) 

29106 ° 296-65 34 



iii 



September 15, 1933. 
The President, 

The White House. 
My dear Mr. President: I have the honor to submit and recom- 
mend for your approval the Code of Fair Competition for the Lime 
Industry. 

An analysis of the provisions of the Code has been made by the 
Administration. I find that the Code complies with the require- 
ments of Clauses 1 and 2, Subsection (a) of Section 3 of the National 
Industrial Act. 

I am, my dear Mr. President, 
Very sincerely yours, 

Hugh S. Johnson, 

AdmiTvistrator. 
(398) 



CODE OF FAIR COMPETITION 

FOR THE 

LIME INDUSTRY 

To effectuate the policy and purposes of the National Industrial 
Recovery Act the following provisions are submitted as a Code of 
Fair Competition for the Lime Industry ; and, upon approval by the 
President, shall be the standard of fair competition for this Industry. 

Article I — Definitiois^s 

Section 1. The term " Lime Industry " means the manufacture for 
sale of quicklime and such of its allied products as are natural 
affiliates. 

Sec. 2. The term " employee " shall mean any person employed 
in any phase of the Lime Industry, in any capacity, in the nature 
of employee irrespective of the method of payment of his com- 
pensation. 

Sec. 3. The term " employer " shall mean anyone for whose benefit 
such an employee is so engaged. 

Sec. 4. The term " manufacturer " shall include any member of 
the Lime Industry who shall be subject to this Code. 

Sec. 5. The term " district ", unless the context otherwise requires, 
shall mean a Lime Industry District established in Schedule "A" of 
this Code. 

Article II — Labor Provisions 

Section 1. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self -organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection; no employee 
and no one seeking employment shall be required as a condition of 
employment to join any company union or to refrain from joining, 
organizing, or assisting a labor organization of his own choosing; 
employers shall comply with the maximum hours of labor, minimum 
rates of pay, and other conditions of employment, approved or pre- 
scribed by the President. 

Sec. 2. Working Hours. — On and after the effective date no em- 
ployee (except outside salesmen) shall work in excess of eight (8) 
hours in any one day or in excess of forty (40) hours in any week; 
provided, however, that these limitations shall not apply in periods 
of seasonal peak demand or in the event of lack of storage facilities, 
or emergencies, but in no event shall the total working hours oi 
any employee, averaged over a six (6) months' period, exceed forty 
(40) hours per week. All overtime work in excess of eight (8) hours 
per day shall be paid for at not less than one and one-half times 

(399) 



400 

the hourly rate. These maximum hours shall not apply to foremen, 
superintendents, managers, officials, or others compensated on a 
regular salary basis in excess of $35.00 per week. 

Sec. 3. Rates of Wages. — On and after the effective date, the mini- 
mum rate of wages for employees, excluding accounting, clerical, 
and office employees, shall not be less than thirty (30) cents per 
hour in all territory south of the northern boundary of Virginia, 
Tennessee, Arkansas (including the manufacturing section known 
as Southwestern Missouri), Oklahoma, New Mexico, and Arizona 
and in all other territory the minimum wage rate shall be not less 
than 371/^ cents per hour. There shall be an equitable readjustment 
of compensation now in excess of the minimum wages herein estab- 
lished. 

On and after the effective date, the minimum rate of wages for 
accounting, clerical, or office employees shall be not less than $15.00 
per week in any city of over 500,000, or in the immediate trade area 
of such city; $14.50 per week in any city of between 250,000 and 
500,000 population, or in the immediate trade area of such city; 
$14.00 per week in any city of between 2,500 and 250,000 popula- 
tion, or in the immediate trade area of such city; and $12.00 per 
week in towns of less than 2,500 population. Population shall be 
determined by the 1930 Federal census. 

Emploj^ees who b}^ reason of old age or phj^sical infirmities are 
incapable of normal productive effort ma}'^ be compensated at a rate 
not less than 80 percent of the foregoing minimum rates of pay, 
but the number of such emploj-ees shall not exceed 5 percent of 
the total number of employees from time to time employed. 

Sec. 4. Prohihifion of Child Lahor. — On and after the effective 
date, employers shall not employ any person under the age of sixteen 
(16) years. 

Article III — Marketing 

Section 1. Umfomn Cost Accounting. — The Trade Relations Com- 
mittee (hereinafter described in Article V hereof) upon reasonable 
notice to the District Control Committees and acting upon their 
recommendations, shall immediately prepare and adopt for use in 
the Industry, and shall submit to the Administrator for his ap- 
proval not earlier than ten (10) days after submitting the same to 
each District Control Committee (hereinafter described in Article V 
hereof), a standard uniform system or method of cost accounting. 
Upon such approval by the Administrator all manufacturers shall 
maintain at all times an accurate record of all costs in accordance 
with such system or methods or in such other manner as will clearly 
indicate and make available the information required thereby. Such 
system or method shall specify the items which shall be included 
in determining each manufacturer's cost. 

Sec. 2. Standard For7ns. — Each District Control Committee, in 
cooperation with the Trade Relations Committee, shall prepare 
immediately standard forms for quotations and contracts for use by 
manufacturers producing in the district to the end of standardizing 
such forms as far as possible in all districts, which forms shall 
specify the terms and conditions under which quotations and con- 
tracts for sale shall be made. AVlien so prepared and approved by 



401 

the District Control Committees, copies of such forms shall be sent 
to the Trade Relations Committee, and shall be submitted by it to the 
Administrator for his approval. Upon the Administrator's approval 
thereof, no manufacturer in any district shall quote or sell lime or 
lime products on terms or conditions at variance from those specified 
in the forms approved for that district. 
Sec. 3. Methods of Selling. 

(a) Establishrnent of Basing Points. — The practice of determining 
delivered prices for lime in given markets, by the utilization of a 
basing point or points, plus the prevailing rail freight rates, has been 
a long-standing custom in the Industry. 

Each District Control Committee (hereinafter in this Code pro- 
vided for) may establish for its district a basing point or points 
(and change or revise the same from time to time as conditions war- 
rant), whicli basing point or points shall be fair and reasonable as 
to all interested parties ; provided, that in the event no such District 
Control Committee shall have been elected in any district within 
twenty days after the eifective date of this Code, then such basing 
point or points shall be established for such district by the Trade 
Kelations Committee acting upon the recommendations of the manu- 
facturers therein. 

(b) Weighted Avei^age District Costs. — Each District Control 
Committee shall determine within its own district, and from time to 
time revise and promulgate for the guidance of the Industry, the 
weighted average cost of each industry product manufactured in 
such district. Such cost shall be based upon the costs of individual 
manufacturers, as provided for in Section I of this Article. In case 
of a district having no District Control Committee the manufactur- 
ers in such district shall report to the Trade Relations Committee, 
or its designated agency, necessary data to enable the Trade Rela- 
tions Committee to determine weighted average costs for eacli in- 
dustry product manufactured in such district, and the Trade Rela- 
tions Committee shall determine such costs and promulgate the same 
for the guidance of the Industry. Such average costs shall be sub- 
ject to the approval of the Administrator and the substantiating 
data shall be open to his inspection at all times. Such determination 
of cost shall be made in such manner that individual figures are kept 
confidential and shall not be available to competitors. 

After such average cost of each industry product is so determined 
for any district, no manufacturer in the industry shall sell any such 
industry product for delivery in such district at less than such aver- 
age cost, plus basing rail freight. Any sale in any such district by 
any manufacturer at less than such average cost, plus basing rail 
freight, shall be an unfair method of competition. 

(c) Price PxiMication. — Each manufacturer in the industry shall, 
within ten (10) days after the effective date of this Code, file with 
the District Control Committees a list showing the basing point 
prices, and terms and conditions of sale for each of the products 
offered for sale in each district by such manufacturer and after the 
expiration of such ten-day period, every manufacturer shall at all 
times maintain on file with the District Control Committees a list 
showing the basing point prices and terms and conditions of sale 
except as herein provided. Each such list shall state the date upon 



402 

which it shall become effective, which date shall not be less than 
five (5) days after the date of filing such list; provided, however, 
that the first list of prices and terms and conditions of sale filed by 
any manufacturer, as above provided, shall take effect on the date 
of filing thereof. None of the prices and terms and conditions of 
sale shown in any list filed by any manufacturer, as herein provided, 
shall be changed except by the filing by such manufacturer with the 
District Control Committee of a new list of basing point prices and 
terms and conditions of sale which shall become effective on the 
effective date therein specified, which shall not be less than five (5) 
days after the date on which such new price list and terms and condi- 
tions of sale shall have been so filed. In case any district shall not 
have elected a District Control Committee, then the manufacturers 
selling within such district shall file their prices and terms and condi- 
tions of sale for such district with the Trade Relations Committee in 
the same manner and under the same conditions as those above stated 
for filing with the District Control Committees. 

All such price lists and terms and conditions of sale filed with 
the District Control Committee shall be immediately distributed 
among the manufacturers within the district, and a copy filed with 
the Trade Relations Committee and all such price lists and terms 
and conditions of sale filed with the Trade Relations Committee 
shall be immediately distributed to all manufacturers in the Industry 
interested therein. 

In the event that any manufacturer shall not receive sufficient 
notice of the filing by any other manufactuer of revisions in such 
other manufacturer's prices or terms and conditions of sale, as will 
enable him to meet such revisions of such other manufacturer on the 
effective date thereof, then if such manufacturer shall file with the 
appropriate committee such revisions in his prices and terms and con- 
ditions of sale as may be required to meet the revisions filed by such 
other manufacturer, within forty-eight hours after receipt of notice 
thereof, the revisions so filed by such manufacturer shall become 
effective on the same date as the revisions of such other manufac- 
turer, or if they be already effective, shall become effective 
immediately. 

The failure of any manufacturer to adhere to his prices, terms, 
and conditions of sale, filed as herein provided, and any other devi- 
ation from the provisions of this section, shall be an unfair method 
of competition. 

(d) Reports for the President. — The Trade Relations Committee 
shall, prior to the expiration of the foui;-month period herein below 
specified, make to the President a report and recommendations as 
to the effect of the basing point and average cost provisions of this 
Code upon prices in the industry, upon such other matters as it may 
deem pertinent to properly inform the President upon the operations 
of this section, and upon such matters as may be requested by the 
President or the Administrator. 

The foregoing provisions with regard to basing points and aver- 
age costs herein above described are experimental and tentative so 
far as this Code is concerned, and shall continue in effect for a period 
of four months after the effective date of this Code in order to afford 
the President an opportunity to determine upon the recommenda- 



403 

tions of the representative or representatives appointed by the Ad- 
ministrator to the Trade Relations Committee as hereinafter pro- 
vided (wliich recommendations shall be made periodically or as 
often as the said representative or representatives deem necessary or 
advisable but in any event not later than four (4) months after the 
approval date of this Code) and upon the report and recommenda- 
tions of the Trade Relations Committee, whether such provisions 
will effectuate the purposes of Title I of said National Industrial 
Recovery Act and whether such provisions are beneficial or detri- 
mental to the industry or to the public; subject, hoAvever, to the 
reserved power of the President to cancel or modify his approval 
thereof and subject also to the further proviso that the establish- 
ment and revision of the basing points and average costs and the 
operation of the foregoing provisions as to basing points and as to 
average costs shall at all times and in any particulars be subject to 
the review and disapproval of the Administrator. The President 
or the Administrator may call upon all manufacturers in the in- 
dustry for such data and information as they may consider helpful 
for the foregoing purposes. Subject to the exercise at any time of 
any powers hereinbefore reserved to the President or the Admin- 
istrator, the provisions of this section shall continue in effect as a 
part of this Code after the expiration of said four months' period. 

Information of a confidential nature shall be collected through a 
confidential agency and be handled in such a way that the individual 
costs, profits, and other like data will not be reflected in any report 
or publication or made available to other members of the Industry. 

Article IV — Unfair Methods of Competition 

Section 1. Defarture from Agreed Working Conditions. — The 
paying of lower than the minimum wages herein prescribed, or the 
exaction of hours of labor in excess of the maximum herein pre- 
scribed, shall be an unfair method of competition. 

Sec. 2. Selling Below Cost. — In addition to the restrictions con- 
tained in Subsection (b) of Section (3) of Article III, it shall be 
an unfair method of competition for any manufacturer of lime or 
lime products to sell below his cost as defined in the standard uniform 
cost accounting system or method to be established for the industry 
as herein provided, except to meet a well-established competitive 
delivered market price for a product of similar grade and quality. If 
any manufacturer shall believe that any other manufacturer is sell- 
ing at less than cost to meet an established delivered price, but that 
in the particular case such selling below cost constitutes an unfair 
marketing practice, such manufacturer shall have the right to file a 
written complaint with the Trade Relations Committee. The Trade 
Relations Committee upon receipt of such complaint shall cause to 
be made an appropriate investigation by such confidential agency as 
it may designate, which confidential agency shall make a full report 
thereon to the Administrator and shall file a summary of its con- 
clusions with the Trade Relations Committee. The Administrator, 
upon receipt of such report shall, in cooperation with the Trade 
Relations Committee, take such further action thereon as he may 
deem appropriate, and shall have the power to direct the manufac- 



404 

turer or manufacturers concerned to correct any such unfair market- 
ing practice found to exist. 

Sec. 3. Commercial Bribery. — To give or permit to be given to the 
agents, employees, or representatives of customers, or prospective 
customers, or to agents, employees, or representatives of competitors' 
customers or prospective customers, money or anything of value as 
an inducement to cause their employers or principals to purchase or 
contract to purchase industry products, or to influence such em- 
ployers or principals to refrain from dealing or contracting to deal 
with competitors, shall be an unfair method of competition. 

Sec. 4. Rebates^ Subsidies^ etc. — To make allowances, such as 
bonuses, rebates, refunds, credits, unearned discounts, or subsidies of 
any kind, whether in the form of mone}^, services, advertising, or 
otherwise for the purpose of securing business, shall be an unfair 
method of competition. 

Sec. 5. Lump Sum Bids and Contracts. — To submit a bid or bids 
for two or more commodities, one of which is lime or a lime product, 
in which the unit price of each commodity is not clearly stated, shall 
be an unfair method of competition. Accepting orders or contracts 
for sale at a lump sum where the contract does not specify the exact 
quantity, quality, and unit price of the product purchased shall be 
an unfair method of competition. 

Sec. 6. C omhination Sales. — No manufacturer shall sell or offer to 
sell commodities other than lime or lime products at prices below the 
current price list established therefor by such manufacturer in order 
to influence the sale of his lime or lime products. Any violation of 
this provision shall be an unfair method of competition. 

Sec. 7. Inducing Breach of Contract. — To willfully interfere with 
any existing contract between any other manufacturer and a whole- 
saler, retailer, consumer, or other party, involving or relating to the 
sale of industry products, such interference being for the purpose 
or with the effect of dissipating, destroying, or appropriating, in 
\ whole or in part, the business represented by such contracts, shall be 
I an unfair method of competition. 

Seo. 8. Defamation of Competitors. — To defame or disparage a 
I competitor, directly or indirectly by words or acts which untruth- 
i fully call in question his business integrity, his ability to perform his 
'contracts, his credit standing or the quality of his product, shall be 
Ian