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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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CODES OF 



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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Kecovery 



CODES OF FAIR COMPETITION 

Nos. 58-110 
AS APPROVED 

BY 

PRESIDENT ROOSEVELT 

OCTOBER 12-NOVEMBER 10, 1933 

WITH SUPPLEMENTAL CODES, AMENDMENTS, AND 

EXECUTIVE ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME II 




WE DO OUR PART 



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: ' UmtEDt S'TATES '■ ■ ''-' ■ 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 



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26 1936 



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wjtb Supt. ot Oocumenti 



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CONTENTS 



Code 
No. 



Industry 



Date ap- 
proved, 
1933 



CODES OF FAIR COMPETITION 

58 Cap and Closure 

59 Marking Devices 

60 Retail Trade 

61 Industrial Supplies and Machinery Distributors Trade 

62 Steel Tubular and Firebox Boiler 

63 Plumbago Crucible 

64 Dress Manufacturing 

65 Advertising Specialtv Manufacturing 

66 Motor Bus 1 

67 Fertilizer 

68 Road Machinery Manufacturing 

69 Millinerv and Dress Trimming Braid and Textile 

70 Gas Cock 

71 Paint, Varnish, and Lacquer Manufacturing 

72 Packaging Machinery , 

73 Hair and Jute Felt ' 

74 Terra Cotta 

75 Canning and Packing Machinery 

76 Rock Crusher Manufacturing 

77 Crown Manufacturing 

78 Nottingham Lace Curtain 

79 Noveltv Curtain, Draperies, Bedspreads, and Novelty 

Pillow 1 

80 Asbestos 

81 Copper and Brass Mill Products 

82 Steel Casting 

83 Soap and Glycerine Manufacturing 

84 Fabricated Metal Products Manufacturing and Metal 
I Finishing and Metal Coating 

85 American Petroleum Equipment 

86 Toy and Playthings 

87 Leather and Woolen Knit Glove 

88 Business Furniture, Storage Equipment, and Filing 

Supply 

89 Office Equipment Manufacturers 

90 Funeral Supply 

91 Piano Manufacturing 

92 Floor and Wall Clay Tile Manufacturing 

93 Washing and Ironing Machine Manufacturing 

94 Men's Garter, Suspender, and Belt Manufacturing. _ 

95 Stock Exchange Firms 

96 Buff and Polishing Wheel 

97 Buffing and Polishing Composition 

98 Fire Extinguishing Appliance Manufacturing 

99 Asphalt Shingle and Roofing Manufacturing 

1 00 Paperboard 

101 Cleaning and Dyeing Trade 

102 Shovel, Dragline, and Crane 

103 Machine Tool and Forging Machinery 

104 Liquefied Gas 

105 Automotive Parts and Equipment Manufacturing 

106 Printer's Rollers 

107 Ladder Manufacturing 

108 Motor Fire Apparatus Manufacturing 

109 Crushed Stone, Sand and Gravel, and Slag 

110 Hardwood Distillation 



Oct. 20 

Oct. 20 

Oct. 21 

Oct. 23 

Oct. 23 

Oct. 23 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Oct. 31 

Nov. 1 

Nov. 1 

Nov. 1 

Nov. 1 

Nov. 1 

Nov. 2 

Nov. 2 

Nov. 2 

Nov. 2 

Nov. 2 

Nov. 4 

Nov. 4 



Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 8 
Nov. 10 
Nov. 10 
I 



(lU) 



IV 



CONTENTS— Continued 



Date 

approved, 

1933 



Page 



SUPPLEMENT 

Automobile Manufacturing — 

No. 1 — Funeral Vehicle and Ambulance Subdivision 

AMENDMENT 

Cotton Textile (Amendment No. 1) 

LABOR PROVISIONS 
Beet Sugar 

EXECUTIVE ORDERS 

Modification of Executive Order of July 27, 1933, placing the 
Cordage and Twine Industry temporarily under Cotton 
Textile Industry Code 

Denial of application of Greensboro Lumber Company for 
exemptions from the Lumber and Timber Products Indus- 
try Code 

Extension of stay for Underwear and Allied Products Manu- 
f act uring Industry 

Defining effect of certain provisions in the Codes of Fair 
Competition upon cooperative organizations 

Exemption from the President's Reemployment Agreement 
of employers in to'wns of less than 2,500 population 

Procedure to be followed for tariff relief under Section 3 (e) 
of the National Industrial Recovery Act 

Denial of application of Kaplan Brothers for exemption from 
Artificial Flower and P'eather Industrj' Code 

Denial of application by Cotton Textile Industry for further 
exemption from "Machine Hours" on tire yarns and 
fabrics 



Nov. 8 

Nov. 9 
Oct. 27 

Oct. 20 



671 

677 
687 

695 



Oct. 


20 


696 


Oct. 


20 


697 


Oct. 


23 


698 


Oct. 


23 


699 


Oct. 


23 


700 


Nov 


4 


701 



Nov. 6 



702 



CODES OF FAIR COMPETITION 



Approved Code No. 58 
CODE OF FAIR COMPETITION 

FOR THE 

CAP AND CLOSURE INDUSTRY 

As Approved on October 20, 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 Cap and Closure 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 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, 

Administrator. 

The White House, 

October 20, 1933. 

29103° 296-81 34 q) 



October 16, 1933. 
The President, 

The White Home. 

Sir: A proposed Code of Fair Competition for the Cap and 
Closure Industry -was submitted to the Administrator on August 8, 
1933, b}' the Cap and Closure Division of the Glass Container As- 
sociation of America, representing 83% of tlie known members of 
the Industry. The hearing was conducted in Washington on Sep- 
tember 15, 1933, and the Code was revised during the recess of this 
hearing and is submitted in its present form for approval. Every 
'person who requested an appearance was properly heard in accord- 
ance with statutory and regulatory requirements. Only one person, 
the President of the Amalgamated Lithographers of America, re- 
quested recognition and entered an objection to the labor provisions 
of the Code as submitted. 

The Industry which is relatively small and closely interrelated 
with the Glass Containers Industry, experienced, during the past 
four years, a drop of only 10% in unit volume of sales. This was 
coincident, however, with a drop of 18% in the number of employees. 
It is estimated that the insertion of the labor provisions of this Code, 
which are essentially the same as those of the Glass Container In- 
dustry, will necessitate an 11% increase in employment and that 
$350,000 will be added to the yearly payroll. 

Resume or Code 

Article I states the purpose of the Code. 

Article II accuratel}^ defines specific references made in the Code. 

Article III sets forth the mandatory labor provisions, minimum 
age requirements, maximum hours, and minimum wage rates. The 
maximum hours are limited to 40 per week for factory, ofRce, and 
branch employees. Factory hours are permitted to be flexible over 
a six-months' period, but are not to be in excess of 48 hours for any 
one week. The minimum wage rate, varying from $15.00 to $14.00 
for accounting, clerical, office, service, and sales employees (except- 
ing outside salesmen), is based on population differentials. For fac- 
tory, mechanical, ancl artisan employees the minimum is 40^ per 
hour. 

Apprentices and learners without previous experience may not 
constitute more than 5% of the total number of employees and their 
wages shall not be less than 80% of the specified minimums. The 
period of apprenticeship and learning is limited to three months. 
Higher paid employees (up to $35.00 i)er week) are protected by 
an equitable readjustment clause. 

Article IV establishes a Code Authority of five members elected 
by the Industry with additional (not exceeding three) representa- 
tives to be appointed by the Administrator and provides machinery 
for obtaining statistics. 

(2) 



Article V sets fortli tlie Fair Trade T^raetires foi- the Tndiisti'y, 
including an open-price stiiicture with no limitation pla<-ed upon 
the prices any firm may quote. 

Article VI contains the man(lat(}ry provision respecting amend- 
ments and provides for the suhmission of proposed amendments by 
members of the Industry. 

Article VII sets forth the action followed pursuant to a viola- 
tion of the code. 

Article VIII states the effective date. 

Findings 

The Administrator finds: A. This Code complies in all respects 
with the pertinent phrases of Title I of the xVct, including without 
limitation, subsection A of Section 7, and subsection B of Section 10 
thereof; B. The Cap and Closure Division of the Glass Container 
Association is truly representative of the Cap and Closure Indus- 
try, and the bylaws of this Association provide no inequitable re- 
strictions to membership; C. The code is not designed to promoto 
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 Eecovery Act. 

The Industrial and Labor Advisory Boards have approved the 
Code as now presentecL The Consumers Advisoi-y Board approves 
the Code wnth one additional recommendation. The Legal Depart- 
ment has checked the Code as to form and has approA'ed it. 

It is recommended, therefore, that this Code be ajiproved. 
Ilespectfull}^, 

Hugh S. Johnson, 

Admin J.sf rat or. 



CODE OF FAIR COMPETITION 

FOK THE 

CAP AND CLOSURE INDUSTRY 

Article I — Purpose 

To eflfectuate the policy and purposes of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Cap and Closure Industry, and shall be 
binding upon every member thereof. 

Article II — Definitions 

Section 1. The term '* Industry "' means and includes the business 
of producing in the United States and selling caps or closures and 
liners therefore of the types and kinds referred to in connection with 
the following Divisions of the Industry which are hereby recog- 
nized and defined : 

A. The '' Tinplate, Aluminum and Zinc Screw^ and Lug Cap " 
Division consists of members of the Industry producing and selling 
caps and closures made of tinplate, aluminum, or zinc, designed for 
use in connection with G.C.A. (Glass Container Association) Num- 
bers 300, 100, 125, 150, 175, 425, 400, 410, 415, 450, 1300, 2900, 1200, 
2200, 1600, and 1900 Glass Finishes, and all other screw or lug types 
of caps or closures made of tinplate, aluminum, or zinc for any 
other glass finishes than those herein specified, except cover caps 
for catsup bottles and screws caps designed as a unit or in combina- 
tion with bands to serve as nontamperable seals and caps for use in 
home canning or preserving. 

B. The "All Other Tinplate, Aluminum, and Zinc Cap " Division 
consists of members of the Industry jDroducing and selling all types 
of caps and closures for glass containers made of tinplate, alinninum, 
or zinc other than those specified in Section 1, A, except Crown 
caps and milk-bottle caps. 

C. The '' Molded Cap " Division consists of members of the In- 
dustry i^roducing or selling caps or closures of every type and kind of 
molding compounds. 

D. " The Cap and Closure Liner " Division consists of members 
of the Industr}^ processing and selling liner pasteboard and paper 
liner material for use in metal and molded caps as defined in Sec- 
tion 1, Paragraph A, B, and C. 

Other divisions may be formed from time to time by interested 
groups of members on application to and approval by the Code 
Authority and of the Administrator. When so approved the defini- 
tion of the division shall be added to the list of divisions recognized 
by this section. 

' Sec. 2. The terms " President ", "Act ", and "Administrator ", 
as used herein shall mean respectively, the President of the United 

(4) 



States, the National Indiistrial Recovery Act, and tlie Adininisti ator 
of said Act. 

Sec. 3. The term "employee" as used herein includes anyone en- 
gaged in the Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of 
such compensation. 

Sec. 4. The term " employer " as used herein includes anyone by 
whom an}' such employee is compensated or employed. 

Sec. 5. The term " plant " means a plant engaged in the Industry 
as herein defined. 

Sec. G. " Majority vote.'' Each member of the Industry sliall have 
one vote. At any meeting of members of the Industry, members 
thereof having the right to cast at least 51 percent of all the A'otes 
and whose sales volume for the preceding calendar year equals at 
least 51 percent of the total sales volume shall constitute a quorum. 
Sixty percent of the members present at each qualified meeting shall 
constitute a majority vote; provided, however, that the total sales 
volume of (he preceding calendar jQar of such number of members 
shall also equal at least GO percent of the total sales volume of all 
members present at such meeting. 

Sec. T. The term " Code Authority '' means the Administrative 
body provided for in Article IV of this Code. 

Sec. 8. The term "The Association" means the Glass Container 
Association of America. 

xYrticle III — Labor Pkovisioxs 

Sectiox 1. Emploj'ees shall have the right to organize and bargain 
collectiveh' 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 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. 

Employers shall comply with the maximum hours of labor, min- 
imum rates of pay, and otlier conditions of emploj^ment approved or 
prescribed by the President. 

Sec. 2. No member of the Industry shall employ any person under 
the age of sixteen (16) years, and no person under 18 years of age 
shall be employed or allowed to work on or in connection with any 
hazardous manufacturing j^rocesses. 

Sec. 3. The maximum number of working hours for all employees 
in the Industry except as hereinafter provided shall not be in excess 
of 40 hours per week averaged over a six months' period, and not in 
excess of forty-eight (48) hovu-s in any one week. For the purpose 
of this section the balance of the jeav 1933, from the effective date of 
this Code to December 31, 1933, inclusive, shall be considered the 
first period. Subsequent periods shall begin on January 1st and 
July 1st, to end on June 30t]i and December 31st, respectively. 



The maximum number of working hours for office or branch em- 
ployees in the Industr}- shall not be in excess of an average of forty 
(40) hours per week over any one month's period, and not in excess 
of fortj^-eight (48) hours in any one week. Provided, however, that 
the provisions of this section shall not apply to executives and super- 
visors, outside salesmen, technical and laboratory staffs, watchmen, 
and those employed in emergency maintenance and emergenc}' repair 
work. 

Employers shall not reclassify employees or duties of occupations 
performed by employees so as to defeat the purposes of the Act. 

Sec. 4. No employee shall be permitted to Avork for two or more 
employers for a longer period in an}' week than is specified herein 
for a single employer. 

Sec. 5. No employer shall pa}' any accounting, clerical, office, serv- 
ice, or sales employee (except outside salesmen) less than at the rate 
of $15.00 per week in any city of over 500,000 population, or in the 
immediate trade area of such city ; nor less than at the rate of $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 at the rate of 
$14.00 per week in any town or city of 250,000 population or less. 

Sec. 6. Xo employer shall pay any factory or mechanical worker 
or artisan less than forty (40^) cents per hour unless the hourly 
rate for the same class of work on July 15, 1929, was less than forty 
(40^) cents per hour, in which latter case not to pay less than the 
hourly rate on July 15, 1929, and in no event less than thirty (30^) 
cents per hour. It is agreed that this paragraph establishes a guar- 
anteed minimum rate of pay regardless of whether the employee is 
compensated on the basis of a time rate or on a piece work perform- 
ance. 

Female employees doing the same work as that performed by male 
emplo3'ees shall receive a rate of compensation equal to that of such 
male employees. 

Apprentices and learners without previous experience in the Indus- 
try shall be excepted from the provisions of this Section; provided, 
however, that the total number of such apprentices and learners shall 
not constitute more than five (5%) percent of the total number of 
emplo3'ees subject to the provisions of this Code in any one plant: 
and provided further, that the wages paid to such apprentices and 
learners shall not be less than eighty (80% ) percent of the minimum 
rates of pay specified in tliis Code; and provided further, the pe- 
riod of apprenticeship or learning shall not exceed one month. 

Sec. 7. The existing amounts by which wages in the higher-paid 
classes of employees, up to employees receiving thirty-five ($35.00) 
dollars per week, exceed wages in the lower-paid classes of employees, 
shall be maintained; provided, however, that where the foregoing 
provision results in rates that are inequitable as between plants, for 
the same work, revision or wage rates for higher-paid classes shall 
be adjusted in a reasonable manner, subject to the supervision of the 
Code Authority. 

Sec. 8. Any employee excepted in Article III, Section 3 of this 
Code other than executives and supervisors who receive more than 
thii'ty-five dollars ($35) per week, watchmen, and outside salesmen, 



shall be paid overtime at the rate of time ami a half for all hours in 
excess of 40 hours per week averaged over a six months' period. 

Skc. 9. Each employer shall post in a conspicuous place full 
copies of the labor provisions of this Code. (Article III and Article 
VI, Section 2.) 

Article I V — Administration 

Section 1. To effe(;tuate the policies of the National Industrial 
Recovery Administration and to provide for administration of this 
Code within the Industry, a Code Authority of live members shall 
be established by the Industry and upon request of the Administra- 
tor such additional non-voting representatives of the Administrator, 
not to exceed three, to be appointed by him shall be added to such 
Code Authority. All persons engaged in the Industry as herein 
defined shall be entitled to participate in the election of such mem- 
bers of the Code Authority. Such election shall be b}' a majority as 
defined in Section 6 of Article II. The method of selection shall be 
subject to review by the Administrator. 

Each tradfe or industrial association directly or indirect!}^ parti- 
cipating in the selection or activities of the Code Authority shall: 
(1) Impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator ma}^ deem necessary to eifectuate 
the purj^oses of the Act. 

In order that the Code Authority shall at all times be truly repre- 
sentative of the trade/industry and in other respects comply with the 
provisions of the Act, the x4.dministrator may provide such hearings 
as he may deem proper ; and thereafter if he shall find that the Code 
Authority is not truly representative or does not in other respects 
compl}' with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

Sec. 2. Each division shall have authority to prepare and from 
time to time recommend revisions of its own schedule of Trade Prac- 
tices by majority vote of such division. Recommendations as to 
schedules or revisions adopted by anj^ division shall be submitted by 
such division to the Code Authority. If the recommendations so 
submitted relate solely to the interests of the division, the Code Au- 
thority shall approve such action forthwith, subject only to review 
by the Administrator. If the recommendations so submitted affect 
other divisions of the Industry, then the Code Authority shall take 
such action as it deems necessary; all to the end that each division 
shall be independent and self-governing on all matters relating ex- 
clusively to such division. Any action taken pursuant to this Section 
shall be subject to approval by the Administrator after such notice 
and hearing as he may prescribe. 

Sec. 3. In addition to the powers herein specifically conferred upon 
the Code Authority, it shall have the following powers and duties to 
the extent permitted by the i^ct, subject to the right of the Adminis- 
trator, on review, to disapprove or modify any action taken. 



8 

(a) The Code Authority shall be charp;ecl with the supervision, 
administration and enforcement of this Code and may issue such 
rules and regulations as may be necessary to effectuate the purposes 
of this Code. The Code Authority shall have the right to establish 
its OAvn rules for the conduct of its business. 

(b) In order that the President may be informed of the extent of 
observance of the provisions of this Code and of the extent to which 
the declared policy of the National Industrial Recovery Act is being 
effectuated in the Industry as herein defined, the Code Authority 
shall make such reports as the Administrator may require, and each 
emplover shall make such sworn or unsworn reports to the Code 
Authority periodically, or as often as it may direct on wages, hours 
of labor, conditions of employment, number of employees, produc- 
tion, shipments, sales, stocks, prices, and other matters pertnient to 
the purposes of this Code as the Code iVuthority may require, and 
each employer subject to the jurisdiction of this Code and accepting 
the benefits*^ of the activities of the Code Authority hereunder shall 
either become a member of the Association or pay to the Code Au- 
thority his proportionate share of the amounts necessary to defray 
the cost of the assembly, analysis, and publication of such reports and 
data, and of the maintenance of the said Code Authority and its ac- 
tivities. Said proportionate share shall be based upon value of net 
sales. 

In addition to information required to be submitted to the Code 
Authority, there shall be furnished to government agencies such sta- 
tistical information as the Administrator ma}' deem necessary for 
the purposes recited in Section 3 (a) of the National Industrial 
Recovery Act. 

(c) An}' and all information furnished to the Code Authority 
shall be deemed confidential and shall not be divulged to any member 
except in summary, but shall be available to the Administrator upon 
request. 

(d) The Code Authority may designate the Glass Container As- 
sociation or any other appropriate agency to assist it in carrying 
out the powers and duties conferred upon it by this Code, provided, 
that the Code Authority shall not be relieved of responsibility and 
that when such Association acts in such capacity, it shall comply 
with all the provisions of this Code applicable to the Code 
Authority. 

(e) The Code Authority may from time to time appoint such sub- 
committees or designate such agencies, and may delegate to any of 
them such of its powers and duties, as it shall deem necessary or 
proper in order to effectuate the provisions and purposes of this 
Code. 

(f ) The Code Authority shall receive, and if it shall approve, shall 
present for the aj^proval of the Administrator, any proposals for 
supplementary provisions or amendments of this Code or additional 
Codes, applicable to the Industry defined herein or to any part 
thereof, with respect to wages, hours, trade practices, or related 
matters or conditions in the Industry. 

Sec. 4. (a) Any interested party shall have the right of complaint 
to the Code Authority and of a prompt hearing and decision thereon 
in respect to any decision, rule, regulation, or other course of action 



of such Code Authority. Such couiphiint must bo filed in writing 
with the Code Autlu)rity within a rt'iisoiiabh' j^eriod of time after 
said decision, rule, ic^idation, oi- course of action is issued oi- taken. 
The decision of such Code Authority may be ai)peak'd ))y any 
interested party to the Achninistrator. 

(b) Any interested party shall have the right of appeal to the 
Administrator, under such rules and regulations as lie nuiy pre- 
scribe, in respect to any decision, rule, regulation, or other course 
of action, issued or taken by the Code Authority. Tlie Adminis- 
trator nuiy cancel or modify any sucli action of the Code Authority. 

Article Y — Thade Provisions 

Spx'tion 1. Tlie rules of fair trade practice for the Tinplate, 
Aluminum and Zinc Screw, and Lug Cap Division and the Cap and 
Closure Liner Division of the Cap and Closure Industry as set 
forth in Schedule A attached hereto, are specifically made a part of 
this Code. 

Sec. 2. AVhere the costs to a member of the Industry of executing 
contracts entered into prior to approval of this Code by the Presi- 
dent are increased by the application of the provisions of this Code, 
it is equitable and promotive of the purposes of the National Indus- 
trial Recovery Act that appropriate adjustments of such contracts 
to reflect such increased costs be determined by arbitral proceedings 
or otherwise. The Code Authority shall assist in effecting such 
adjustments. 

Article VI— General 

Section 1. No provision of this Code shall be construed, inter- 
preted, or applied in such a manner as to — 

(a) Promote monopolies or monopolistic practices. 

(b) Promote or encourage unfair competition, 
^c) Eliminate or oppress small enterprises, 
(d) Discriminate against small enterprises. 

Sec. 2. Within each State this Code shall not supersede any laws 
of such State imposing more stringent requirements on employer 
regulating the age of employees, wages, hours of work, or health, 
fire, or general working conditions than under this Code. 

Sec. 3. Prior to December 31, 1933, no member of the Industry 
shall increase the sale price of his product sold after the effective 
date hereof over the price on Julj^ 1. 1933, by more than is made 
necessary by actual increases in manufacturing, distribution and ma- 
terial costs, or by taxes or other costs resulting from action taken 
pursuant to the Agricultural Adjustment Act and/or this code since 
July 1, 1933. and in setting such price increases, full weight shall 
be given to probable increases in sales volume. In case a member of 
the Industry on July 1, 1933, was selling his product at less than 
actual cost, he may take his cost price on that date as the base 
for such increase in selling price as is permitted by this section. 

Sec. 4. Any member of the Industry shall be eligible to member- 
ship in the Association and there shall be no inequitable restrictions 
imposed upon such membership. 



10 

Sec. 5. The President may from time to time cancel or modify any 
order approval, license, rules, or regulations issued under Title I 
of the National Industrial Recovery Act, and specifically, without 
limitation, may cancel or modify his approval of this Code or any 
conditions imposed b}' him upon his approval thereof. 

Article VII — Violations 

Violation b}' any person of any provision of this Code or of any 
rule or regulation issued thereunder or any false statement or report 
made to the President or the Code Authority shall be constituted an 
unfair method of competition and the offender shall be subject to 
the penalties provided by the National Industrial Recovery Act. 

Article VIII — Effective Date 

This Code shall become effective eleven (11) days after it is ap- 
proved by the President. 

Approval Code No. 58. 
Registi-y No. 1022-1-C3. 



SCHEDULE A 

Rules for Fair Tkadk 1'bactice for thk Tixplate, Aluminum, Zinc-Screw 
AND LvG Cap Division, and Cap and Closure Liner Division 

It is agreed bytlie members of each of the abuve-uamed Divisions in sub- 
scribing to this Schedule A that it becomes necessary to conduct the Divisions 
in an orderly way and to maintain fair competitive conditions in order that 
the provisions and intent of the National Recovery Act may be cai-ried out. 
The members of eacli Division therefore agree that : 

Section 1. No member of the Divisions shall mal^e any sale at a price or 
terms more favorable to tlie purchaser thereof than the price, terms, or 
conditions establislied by such member in accordance witli tlic pri)visions of 
this Schedule A which are in effect at the time of such sale. 

Sec. 2. Each member of the Divisions shall, within ten days after the 
effective date of the Code, file with the Code Authority as many copies of a 
list showing the complete prices for all his products in the Division as the 
Code Authority shall require, and from and after the expiration of sucli ten 
days such member shall at all times maintain on file with the Code Autlxirity 
a list showing complete prices for all his products in the Divisions and shall 
not make any change in such prices except as provided in this Schedule A. 

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 sufficient 
copies of such list with the Code Authority so that copies may be sent to 
each member of the Division ; provided, however, that the first list of prices 
filed by any member of the Division as above provided shall take effect on the 
date of filing thereof. 

The Code Authority shall immediately send copies of the first list so filed 
to all members of the Division and if any member shall file a revised list, 
copies thereof shall immediately be sent to all members of the Division, who 
thereupon may file if they so desire, revisions of their price lists which shall 
become effective upon the date when the revised price list first filed shall go into 
effect. 

These lists shall be open for inspection to all interested parties. 

Sec. 3. None of the prices shown in any list shall be changed except by the 
filing of a new list as provided in Section 2. 

Sec. 4. Recognizing the necessity for uniform practices in regard to dis- 
counts, credit terms, freight allowances, and all other terms of sale, the 
members of the Division may by a majority vote of the members of the Divi- 
sion from time to time determine on such uniform practices and file them with 
the Code Authority. After approval by the Administrator, any violation of such 
uniform practices shall be an unfair trade practice. 

Sec. 5. Nothing in this Schedule contained shall be so construed as to pre- 
vent the performance by any member of any valid bona fide contract made and 
entered into before the effective date of this Code ; provided, however, that 
such contract has not been made and entered into before the effective date 
hereof in contemplation thereof and with the intent to defeat the purpose 
thereof. 

Sec. 6. The sale of discontinued lines or obsolete or imperfect caps is per- 
mitted provided they are sold at not more than 50% of the seller's lowest price 
as published for the same size or type of cap in effect at the time of such 
sale, and such sales shall not be a violation of this Schedule. 

Sec 7. For all purix>ses of the Code the following-described acts shall con- 
stitute unfair practices : 

A. The imitation of the exclusive trade mark or trade name of a competitor. 

B. The sale or offer for sale of any product of the Industry with intent to 
deceive customers or prospective customers as to the quantity, quality, or speci- 
fications of such product. 

(11) 



12 

C. The marking or bramliuir of products of the Industry for the purpose or 
with the effect of misleading or deceiving purchasers with respect to quantity, 
quality, grade, or specillcatlous of the goods purchased. 

D. The payment or allowance of secret rebates, refunds, credits, or unearned 
discounts, whelher in the foim of money or otlierwise, or extending to certain 
purchasers confidential prices, special services, or privileges not extended to all 
purchasers of the same class under like terms and conditions. 

E. Comnicrcia] Bribery. — Directly or indirectly to give or permit to be given, 
or offer to give, money or anything of value to agents, employees, or repre- 
gentatives of customers or prospective customers, or to agents, employees, or 
representatives of competitors' customers or prospective customers, without the 
knowledge of their employers or principals, as an inducement to influence tlieir 
employers or principals to purchase or contract to purchase . from the makers 
of su li gift or oft'er, or to influence such employers or principals to refrain 
from dealing or contracting to deal with competitors. 

F. To permit sales agents or representatives to split commissions with pur- 
chasers. 

G. Free Deals and/or Contrihuthns. — The offering or giving of prizes, pre- 
miums, or gifts in connection with the sale of products, or as an inducement 
thereto. 

H. To m;ike false invoices. 

o 



Approved Code No. 59 
CODE OF FAIR COMPETITION 

FOR THE 

MARKING DEVICES INDUSTRY 

As Approved on October 20, 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 Marking; Devices 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 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 is hereby approved, subject to the following 
conditions : 

(1) To effectuate further the policies of the Act, a Marking De- 
vices Industry Code Authority be created to cooperate with the 
Administrator as a Planning and Fair Practice Agency for the 
Marking Devices Industry, which Committee shall consist of eleven 
representatives of the Marking Devices 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 dminis trator. 

The White House, 

October 20, 1933. 

29102° 296-82 34 (13) 



October 17, 1933. 
The President, 

The White House. 

My Dear Me. President : A Public Hearing on the Code of Fair 
Competition for the Marking Devices Industry of the United States, 
submitted by the International Stamp Manufacturers Association, 
located at 431 South Dearborn Street, Chicago, Illinois, wa,s con- 
ducted in AVashington on the l-lth of September 1933, in accordance 
with the provisions of the National Industrial Recovery Act. The 
Association claims to represent 75 percent of the industry. 

The maximum hours permitted under this Code are forty (40) per 
week, or, to provide for emergencies, not more than 48 per week, 
provided time and one third is paid for all hours in excess of eight 
per day. 

The minimum Avage is thirty-two and one half cents (32i^(^) per 
hour or thirteen dollars ($13.00) per week. 

In considering this minimum wage it should be noted that it is 
the minimum Avage for unskilled help. By far the greater majority 
in this industry are highly skilled artisans and paid higher hourly 
rates. In 1931 the total average for employees in this industry was 
55.3 cents on the basis of a 47-hour Aveek. 

Prior to the President's Reemployment Agreement the hours 
worked in this industry were 47 per week. A 40-hour week will 
raise the level of employment to a point slightly lower than the level 
of 1929 employment and will add approximately 874 productive 
employees to the payroll. If wages are paid on the basis of 1929 
weeklv wage rates for a 40-hour Aveek the total increase in payroll 
Avill be approximately $1,300,000. 

In 1929 the number of individuals employed in the industry 
totalled 4,112, out of Avhich number 2,971 Avere wage earners. In 1931 
the number of Avage earners had decreased to 2,496, or a decline of 
16 percent. 

To raise employment to the 1929 level would require the adoption 
of a 39.4-hour -week. HoweA^er, on the basis of the 40-hour week the 
increase in cost to the consumer as a result of higher wage rates will 
be 6.5 percent. 

This industry has relatively high labor costs, wages representing 
in 1931 33.6 percent of the total value of products, as compared 
with 17.4 percent for all industry combined. 

The value of commodities of the Marking Devices Industry in 
1929 was $15,036,023. This value declined in 1931 to $10,045,366, or 
33.2 percent. 

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, Avithout limita- 

(14) 



15 

tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

(b) Tlie International Stamp Manufacturers Association, the ap- 
plicant group herein, imposes no inequitable restrictions on achnis- 
sion to membership and is truly representative of the Marking 
Devices Industry; and that 

(c) The Code as reconnnended is not designed to promote monopo- 
lies or to eliminate or oppress small enterprises, and will not operate 
to discriminate against them, and Avill tend to effectuate the policy 
of Title I of the National Industrial Recovery Act. 

This industry has cooperated in a most satisfactory manner with 
the Administration in the preparation of this Code. From evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as now 
proposed and revised represents an effective, practical, equitable solu- 
tion for this industry, and its approval as herewith submitted is 
recommended. 

Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

MARKING DEVICES INDUSTRY 

Article I — Purpose 

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 Marking Devices Industry, and upon 
approval by the President, shall be the standard of fair competition 
for this Industry. 

Article II — Definitions 

(1) The term "Marking Devices Industry" as used herein in- 
cludes the manufacture and sale by the manufacturer of any or all 
of the general classes of articles or any part or parts of any one 
or more of such articles as listed in Exhibit A annexed to this Code 
and made a part hereof. 

(2) The term "-employee" as used herein includes any person 
engaged in any phase of the Industry in any capacity receiving com- 
pensation for his services, irrespective of the method of payment of 
such compensation. 

(3) The term "employer" as used herein includes anyone by 
whom such employee is compensated or employed. 

(4) The term "Association " as used herein shall mean the Inter- 
national Stamp Manufacturers' Association. 

(5) The term " member ", or " members ", shall include anyone 
engaged in the manufacture and/or sale by the manufacturer of any 
or all of the general classes of articles or any part or parts of any 
one or more of such articles as listed in Exhibit A, annexed to this 
Code. 

(6) The term "Administrator " as used herein is defined to mean 
the Administrator appointed by the President of the United States 
to effectuate the policy of Title I of the National Industrial Recovery 
Act. 

(7) The term "effective date", as used herein, shall be ten (10) 
days after approval by the President. 

Article III — Hours 

(1) No employee shall work or be permitted to work in excess of 
five hundred and twenty (520) hours in any thirteen (13) week 
period (average forty (40) hours per week), nor in excess of forty- 
eight (48) hours in any one week, provided that overtime at the rate 
of time and one third shall be paicl for all hours in excess of eight (8) 
hours in any one day. 

(16) 



17 

(2) Watchmen shall be employed in pairs and shall work not more 
than thirty-six (3G) and forty-eij?ht (48) hours on alternate weeks, 
or an average of forty-two (42) hours per week. 

(3) The maximum hours fixed in the foregoing sections shall not 
apply to— 

(a) Emergency repair crews and outside sales force. 

(b) Engineers, electricians, firemen, designers, draftsmen, shipi)ing 
crews, ancl truck or delivery wagon emjoloyees; but provided tliat 
employees in the group covered by this paragraph shall be limited 
to forty-eight (48) hours in any one week, and that all such em- 
ployees shall be paid at the rate of time and one third for all hours 
per day over eight (8). 

(c) Executives and supervisory staff receiving more than thirty- 
five dollars ($35.00) per week, except when doing productive or 
mechanical work; provided that the limitation of hours prescribed 
in this Article shall apply to all proprietors, executives, partners, 
supervisors, and foremen whenever they shall engage in any mechani- 
cal or productive work. 

(4) No employee shall work or be permitted to work for a total 
number of hours in excess of the number of hours prescribed, whether 
employed by one or more employers. 

Article IV — Wages 

(1) No employee shall be paid at less than the rate of thirty-two 
and one-half cents (32y2^) per hour or thirteen dollars ($13.00) per 
week of forty (40) hours, except as provided in Section 2 of this 
Article. 

(2) (a) Learners who have had no previous experience or employ- 
ment in this industry shall, during the first year's apprenticeship, 
be paid not less than eighty (80) percent of the minimum wage and 
during the second year's apprenticeship shall be paid not less than 
ninety (90) percent of the minimum wage. In subsequent years 
they shall be paid not less than the full minimum wage. Each plant 
shall be entitled to at least one learner, but learners shall not exceed 
in number one learner to each six other employees. 

(b) Foot or bicycle messengers needed and exclusively used to 
call for orders and/or to deliver finished product shall be paid not 
less than eighty (80) percent of the minimum wage, but no such 
employee shall engage in any productive or mechanical work unless 
paid at a rate not less than the minimum wage as herein provided 
for such work. 

(3) The provisions for the minimum wage in this Code establish 
a guaranteed minimum rate of pay per hour of employment regard- 
less of whether the employee's compensation is based on a time rate 
or on a piecework performance. 

(4) It is the policy of the members of this industry to refrain 
from reducing the compensation for employment which compensa- 
tion was prior to June 16, 1933, in excess of the minimum wage 
herein set forth, notwithstanding that the hours of work in such 
employment may be reduced ; and all members of this industry shall 
endeavor to increase the pay of all employees in excess of the mini- 



mum wage, as herein set forth, by an equitable adjustment of all pay 
schedules proportionate to the increase in compensation as deter- 
mined by the mininuini wage herein provided. 

Article V — Child Labor 

No person under sixteen (16) years of age shall be employed in the 
Marking Devices Industry, nor anyone under eighteen (18) years 
of age at operations or occupations hazardous in nature or detri- 
mental to health. The Code Authority shall submit to the Adminis- 
trator for approval within a reasonable time after the effective date 
of this Code a list of such hazardous occupations. Reliance in good 
faith by an employer upon any evidence as to age admissible in the 
courts of the state in which such employment takes place shall be 
deemed a compliance with this provision. 

Article VI — Administration 

(1) To further effectuate the policies of the Act, a Code Authority 
is hereby established to cooperate with the Administrator in the ad- 
ministration of this Code. The Code Authority shall consist of 
eleven (11) members, selected by a fair method of selection and ap- 
proved by the Administrator, and not more than three (3) members 
without vote to be appointed at the discretion of the Administrator. 

(2) For the purpose of administering this Code the Marking De- 
vices Industiy shall be divided into the several divisions as follows: 



Rubber Stamps 

Rubber Priuting Dies — Moulded 

or Cut 
Steel Stamps, Steel Dies, and 
. Burning Brands 
Brass Stamps, Brass Dies, and 

Milled Brass Signs 



Checks, Badges, Metal Tags, 

and Stamped Plates 
Pressed Metal Plates and Signs 
Seals 
Stencils 
Merchandise Sundries. 



Subject to the control of the Code Authority and with the approval 
of the Administrator each division shall be independent and self- 
governing with respect to the conditions and problems relating ex- 
clusively to the several divisions. 

(a) Proposals in respect to matters affecting more than one divi- 
sion may be initiated by any division affected and shall be submitted 
for consideration to the Code Authority; such proposals, after the 
approval of the Administrator, shall become a part of the rules 
and regulations governing the members of this Industry on such 
matters of procedure or otherwise as they purport to cover. 

(3) Subject to the approval of the Administrator, the Code 
Authority shall : 

(a) From time to time require such verified reports from the 
members of the Industry as in its judgment may be necessary to 
adequately provide for the administration of, and to enforce the 
provisions of, this Code; 

(b) Upon complaint of interested parties or upon its own initia- 
tive, make such inquiry or investigation of the operation of this 
Code as may be necessary; and 

(c) To submit to the Administrator from time to time for his 
approval such proposals, rules, and regulations as may be deemed 



19 

necessary for the proper administration and enforcement of this 
Code. 

(4) The International Stamp Manufacturers' Association is desig- 
nated the Administrative agency under the Code Authority. 

(5) Membershi'p. — Any employer in the Marking Devices Indus- 
try may participate in the endeavors of the Code Authority rela- 
tive to the revisions or additions to this Code by accepting the proper 
pro rata share of the cost and responsibility of creating and admin- 
istering it, either by becoming a member of the International Stamp 
Manufacturers Association or by j^aying to it an amount equal to the 
dues from time to time provided to be paid by a member in like 
situation of said Association. 

(6) When and as determined by the Code Authority of the Indus- 
try, on written notice subject to the approval of the Administrator, 
all members of the Industry shall promptly forward to and file with 
the Code Authority such statistical data and information as may be 
necessary to effectuate the declared policies and provisions of this 
Code and/or the National Industrial Recovery Act. 

(7) Subject to the approval of the Administrator, the Code Au- 
thority shall decide as to what schedules, lists, or studies shall be 
compiled for the Industry as a whole and how and when any of 
this material and information shall be distributed to the members 
of the Industry. It is hereby provided that the individual figures 
of the respective members of the Industry shall not be disclosed 
and shall be treated as strictly confidential. 

Article VII 

COSTS 

(1) Prices of all products shall be based upon accurate and known 
costs, as established by an adequate cost-finding system, approved 
by the Administrator. 

(2) No manufacturer in the Marking Devices Industry shall sell 
any products, merchandise (except dropped lines as provided in Sec- 
tion (3) ), or service at prices below his own individual cost as deter- 
mined in accordance with the cost-finding system. 

(3) Dropped lines, sometimes designated as " close-outs ", may be 
disposed of under such rules and regulations as may be recommended 
by the Code Authority and approved by the Administrator. 

(4) Each manufacturer in the Industry shall, within thirty (30) 
days of the effective date of this Code and at least ten (10) days prior 
to the date on which his price lists shall be effective, file with the 
Code Authority and post in a conspicuous place in his place or places 
of business, his net current price lists or price lists and discount 
sheets, as the case may be, for merchandise, sundry, and standard 
products, and for the made-to-order products on which it is cus- 
tomary in the Industry to issue price lists, and costing and pricing 
formulae for all other products. 

(5) Any member desiring to revise his original price lists filed 
as provided in Section 4 of this Article, shall file and post his 
discount sheets and/or costing and pricing formulae as provided 



20 

in Section 4 for original price lists at least ten (10) days prior to 
their effective date. 

TERMS 

The standard maximum cash discount terms for payment of prod- 
ucts bought from manufacturers, jobbers, or retailers in the Mark- 
ing Devices Industry are hereby declared to be 2% 10 days, net 
30 days, E.O.M. This shall be taken to mean that for any products 
purchased and delivered during any certain month (for example, 
January), payment shall be made for same on or before the 10th 
of the following month (for example, February), less 2 percent; 
and any greater cash discounts given or taken by members of this 
industry on or after the taking effect of this Code shall be considered 
a violation hereof; provided, however, that nothing in this section 
shall be interpreted as preventing any member of the Marking 
Devices Industry from giving or taking cash discounts of less than 
2 percent if he so desires. 

Article VIII — Unfair Trade Practices 

The following shall be considered Unfair Trade Practices for the 
Marking Devices Industry and any member w^ho shall directly or 
indirectly through an officer, employee, agent, or representative, em- 
ploy or cause to be employed any such unfair practice or practices 
shall be guilty of a violation of this Code. 

; (1) Selling, by any manufacturer in this Industry, directly or in- 

I directly or through his dealers, or by any means whatsoever, any 
standard or merchandise sundry product of the Industry at a price 

I lower or at a discount greater, or on more favorable terms of pay- 
ment than those provided in his current net price list or price list 
and discount sheets on file, or selling any made-to-order product of 

ithis Industry or services at a price lower than that determined by the 
current costing and pricing formulae on file. 

(2) Offering merchandise for sale at a price reduced from a 
marked-up or fictitious price. 

(3) The practice of giving special discounts, gratuities, or other 
merchandise at a price below a scheduled sale price as an inducement 
to purchase any commodity or commodities. 

(4) The secret payment or allowance of rebates, refunds, com- 
missions, credits, or unearned discounts, whether in the form of 
money or otherwise; or secretly extending to certain purchasers spe- 
cial services or privileges not extended to all purchasers, under like 
terms and conditions. 

(5) No manufacturer shall discriminate as between purchasers 
of the same quantity or the same class. 

(6) To give or permit to be given, or the offer to give money or 
anything of value, either directly or indirectly, to customers or 
prospective customers, their agents, emploj^ees, and/or representa- 
tives; to purchase or contract to purchase Industry's products, 
either directly or indirectly, from the maker of such gift or offer, 
or to knowingly and in bad faith influence such employers, their 
agents and/or representatives, to refrain from dealing or contract- 
ing to deal with their competitors. 



21 

(7) Any practice of fake, fictitious, or blind bids for (he pur- 
pose of deceiving conipetitois or purchasers, or any attempt througii 
connivance to have all bids rejected to the end that a more advan- 
tageous position nuiy be secured in new bidding. 

(8) The sale or otfering for sale of any product of the Industry 
by any false means or device whatsoever. 

(9) The practice of coercing the purchase of several, or a group 
of products, as a condition to the purchase of one or more products 
under the exclusive control of the seller. 

(10) The practice of knowingly shipping or delivering products 
which do not conform to the samples submitted or representations 
made prior to securing the orders. 

(11) Maliciously inducing or attempting to induce the breach of 
existing contracts between competitors and their customers by any 
false or deceptive means whatsoever, or interfering with or obstruct- 
ing the performance of any such contractual duties or services by any 
such means, with the purpose of unduly hampering, injuring, or em- 
barrassing competitors in their business. 

(12) The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representations. 

(13) False representations concerning the grade or quality of the 
goods of competitors with the tendency to mislead or deceive pur- 
chasers or prospective purchasers. 

(14) 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, charac- 
ter, nature, origin, size, or preparation of any product of the industry. 

(15) Maliciously enticing the employees of competitors. 

(16) The circularization of threats of suit for infringement of 
patent or trade mark among customers of competitors, not made in 
good faith but for the purpose and with the effect of harassing and 
intimidating customers. 

(17) Seeking information from competitors concerning their 
business by false or misleading statement or representations or by 
false impersonations of one in authority. 

(18) The practice of usurping designs, styles, or patterns orig- 
inated by a competitor and appropriating them for one's own use 
within a five-year period after such origination. 

(19) The imitation of the trade marks, trade names, slogans, or 
other established marks of identification of competitors. 

(20) The purchase of, or subscription to an interest in, capital 
stock or other obligation of a present or potential customer, Avhere 
the intent is to furnish goods in payment under conditions which 
violate provisions of this Code applying to credit extensions, terms 
of payment, secret rebates, and allowances, or under conditions which 
are obviously designed to conceal the true nature of transactions 
between seller and buyer. 

(21) To make quotations or to give technical information to any 
individual or firm who is not a bona fide operator in the particular 
field or fields covered by the information or material wanted, for 
the purpose of permitting him or it to manufacture the products 
of this industry. 



22 

Article IX 

Whereas the policy of the Act to increase purchasing power will 
be made impossible of consummation if prices of all goods and 
services purchased increase as rapidly as wages, it is recognized 
that price increases should be delayed and that when made the same 
should, so far as reasonably possible, be limited to actual increase 
in the seller's costs. 

Article X — General 

(1) Prior to any amendment or amendments to the constitution 
or b3'laws of the International Stamp Manufacturers Association, 
such amendment or amendments shall first be submitted to the Ad- 
ministrator for his approval. 

(2) Any member of this Industry who, prior to June 16, 1933, 
contracted to buy or sell any goods, wares, or merchandise at a price 
fixed as of the date of said contract, for future delivery, shall make 
a bona fide effort to arrive at an equitable adjustment on the price 
thereof as fixed by said contract, to meet any proper increase in the 
cost of such goods, wares, or merchandise imposed by virtue of any 
provision of the National Industrial Recovery Act ; and in the event 
such effort fails to result in a mutally satisfactory adjustment, either 
party to said contract may refer the same for adjustment to the Code 
Authority of the Industry, which said Code Authority with the aid 
and assistance of the Administrator or his properly designated agent 
or agents, shall endeavor to arrive at an equitable adjustment thereof. 

(3) 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. 

(4) 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. 

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

(6) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions 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 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. 

(7) Within each State, this Code shall not supersede any laws 
of such State imposing more stringent requirements regulating the 
age of employees, wages, hours of work, or health, fire, or general 
working conditions, then under this Code. 

(8) Each employer shall post in conspicuous places full copies of 
this Code. 



23 

(9) No provision of this Code shall be so applied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate against small enterprises. 

(10) In addition to the information required to be submitted to 
the Code Authority, there shall be furnished to the Administrator 
or his desij^nated aji^ent or agents such statistical information as the 
Administrator may deem necessary for the purposes recited in Sec- 
tion 3 (a) of the Act. 

(11) After due notice and hearing, this Code may be amended 
upon the recommendation of the Code Authority or any interested 
party or group or upon the Administrator's own motion, and any 
amendment or modification so determined shall be effective when 
approved by the President, unless otherwise provided. 

The undersigned do hereby certify that the foregoing is a true 
copy of the Code of Fair Competition for the Marking Devices 
Industry, submitted to the Administrator under the National Indus- 
trial Recovery Act, as amended by authority of the Executive Com- 
mittee of the Marking Devices Industry. 

(Signed) J. R. Swipt, 
President International Stamp Manufacturers Association, 

(Signed) W. L. Lord, 
Secretary International Stamp Manufacturers Association. 

October 1933. 

Approved Code No. 59, 
Registry No. 1399/04. 



EXHIBIT A 

List of PEOorcTs foe the Pubpose of Defining Divisions of the Marking 

Devices Industry 

The following listings by division and product shall serve as an index and 
definition : 

Section (1) Made-to-Order Products. 

(a) Rxi'bher Stamps. 

"Wood-mounted Rubber (hand) stamps 
Metal-mounted Rubber (hand) stamps 
All Rubber-mounted (hand) stamps 
Line daters and numberers, Special 
Die plate Daters, Time Stamps, Cancellers, etc. 
Self-Inkers — plain, dating, etc. 
Pocket stamps 
Ink and Ink pads, Special 

Movable Rubber type and Outfits of Special or unusual kinds 
Hand Operated Printing Wheels with Rubber Dies 
Printing I'resses for use with Rubber dies and movable rubber type 
Special Holders, Racks, Rules, Attachments, and Accessories for any 
of the above 

(b) Ruhher Printing Dies, Moulded or Cut. — These are commonly known aa 
" rubber printing dies or plates " and are used on many different types of print- 
ing presses, for general printing purposes and for imprinting advertising mat- 
ter, specifications, directions, etc., on corrugated, fibre, chip, and cardboard made 
into boxes, shipping cases, display boxes, etc. ; also on many different types of 
articles made from steel, rubber, cellophane, wood, paper, etc. 

(c) Steel Stamps, Steel Dies, and Burning Brands. 

Steel Stamps 

Steel Letters and Figures 

Steel Type 

Embossing Type 

Male and Female Embossing Dies 

Steel Printing Dies for paper cartons and wood boxes 

Decorative tools for wood, paper, metal, etc. 

Steel Matrices 

Metal Dies for branding by means of heat or ink 

Machinery and appliances for working with the above 

(d) Brass Stamps, Brass Dies, and Milled Brass Signs. 

Brass Stamps engraved for staiuplng letters or designs into wood, 
cloth, leather, paper meats, etc. 

Brass Dies for embossing book covers, paper, leather, etc. 

Brass Signs made by process of milling or engraving 

Brass Dies for moulding and marking soaps 

Machines having brass wheels and/or dies for dating, timing, number- 
ing, etc. 

(e) Checks, Badges, Metal Tags, Fibre Tags, Metal Labels, and Stamped 
Plates. 

Metal Checks, Metal Labels, Metal Tags, Fibre Tags, time, tool, key, 

trunk, trade, identification, etc., having raised or sunk letters 
Badges, all shapes and forms of metal badges such as employees, 

police, detectives, sheriff, marshall, firemen, etc. 
Stamped Plates, for identification, license, instruction, caution, brands, 

patent dates, trade marks, etc., stamped in various metals and fibres 

with steel dies. 
Medals, Tokens, and Pocket Pieces, etc. 

(24) 



25 

(f) Pressed Metal Signs, Metal Vehicle Tax, and Automobile License Plates. 

Embossed or Dol)ossod sheet metal si^ns, finished or unfinished, made 
by stamping with male and female dies or type or by metal die 
against rubber counter 

(g) Seals. 

Notary, corporation, and official documental seal presses in all sizes 

operated by hand or power 
Similar presses used for embossing letter heads, photographs, and cards 

not exceeding 20U# in weight 
Metal and Plastic Dies used in above presses with metal or plastic 

counters 
Lead Seal Presses for sealing cars, meters, vaults, meats, cases, bags, 

etc. 
Wax Seals for sealing documents, valuable packages, etc. 
(h) Stencils. 

For Lettering or branding with paint or ink by means of brush or 

spray gun. 
For sand blasting letters and designs into glass, etc. 
Seo. (2). Merchandise Sundries. — Manufactured on standard specifications as 
kindred stock accessories to the above services and made-to-order products. 
Many of these are altered or modified by the manufacturing dealer to order : 
Line Daters and Numberers 
Self-Inking Line Daters and Numberers, etc. 
Alphabet stamps 
Cost and Selling Price Stamps 
Library and Revenue Dating stamps 
Rotary Dating and Time stamps 
Movable Rubber Type Sets 
Metal Type with Rubber Face 
Type Holders 

Stock Rubber Hand Stamps 
Marking Devices Inks 
Ink Pads for Marking Devices 
Numbering Machines (hand) (not typographic) 
Price and Sign Markers and Chart Printers 
Stamp Racks and Cases 
Adjustable Stencils 

Machine-Made Steel Letters and Figures 
Music Chart Printers 
Stencil Brushes and Pots 
Stencil Cutting Machines 
Holders, Racks, Rules, Attachments, and Accessories for any of the 

above 
Printing Presses (amateur hand operated) for metal type 
Note. — The listings in Sections (1) and (2) hereof are not intended to be 
complete or altogether restrictive in defining these Divisions of the Marking 
Devices Industry, but rather that they shall be suggestive of the Arts and 
facilities available for other products for similar uses. 



EXHIBIT B 

Regulations for the Enforcement of the Provisions of the Code of Faib 

Competition 

part of agreement and code of fair competition for the marking devices 

industry 

1. Any employer or any employee of this Industry, or any purchaser of any 
of the products of the Industry, may enter a complaint of violation of this 
Code, providing such complaint is presented in writing to the Code Authority, 
giving the nature of the complaint in detail, supported by all the available 
evidence thereon. 

(a) The Executive Secretary shall, on receipt of such complaint, notify 
the alleged violator, and request his answer. Whenever, in the judgment of 
the Code Authority it shall be necessary, the Executive Secretary shall refer 
such report of violation to the Chairman of the Committee having jurisdiction 
over the particular division of the Industry in which the alleged violator 
operates. 

(b) Copies of the complaint, of the evidence, and of the answer, shall be 
furnished to the Chairman of the Committee having jurisdiction, to the com- 
plainant, and to the alleged violator, in identical form and manner. 

(c) The said Chairman shall set a date for a hearing on the case, to bo 
held not later than two weeks after the receipt by him of the complaint, and 
he shall immediately endeavor to adjust a settlement thereof, either alone or 
in consultation with the members of the Committee. 

(d) In case such procedure fails to settle the matter to the satisfaction 
of both parties, all papers relating to the case with recommendations by the 
Committee of the division shall be placed before the Code Authority who, 
in the event of a failure to adjust the matter in hearing to the mutual satis- 
faction of both parties, shall forward all such papers to the Administrator or 
his duly authorized agent or agents for such further action as may be proper 
in the premises. 

(26) 

o 



Approved Code No. 60 
CODE OF FAIR COMPETITION 

FOR THE 

RETAIL TRADE 

As Approved on October 21, 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 Retail Trade, and hearings having been 
held thereon and the Administrator having rendered liis 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 compe- 
tition 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 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, 

Administrator. 

The White House, 

October 21, 1933. • 

29894 296-163 34 (27) 



October 20, 1933. 
The President, 

TJie White House. 

I. INTRODUCTION 

]\It Dear Mr. President: This is a report of the hearing on the 
Code of Fair ComiDetition for the Retail Trade as proposed by the 
following associations: 

The National Retail Furniture Association. 

The National Retail Hardware Association. 

Mail Order Association of America. 

The National Association of Retail Clothiers & Furnishers. 

The National Retail Dry Goods Association. 

The National Shoe Retailers Association. 

The National Council of Shoe Retailers. 

The Limited Price Variety Stores. 

National Association of Music Merchants. 
Attached herewith is a copy of the Code as finally proposed and 
the Report of the Deputy Administrator. 

This Code covers all the retail field except the selling of foods, 
tobacco, and milk, and excejDt such other divisions of the retail trade 
as are now^ or may subsequently be governed by separate codes. 
Schedule A, attached to the Code, contains certain special provisions 
which apply only to drug retailers. Inasmuch as the drug retailers 
asked for a separate code, we are submitting at the same time with 
this Code a Code for the Retail Drug Trade which is identical in 
all its provisions with the provisions of the Code for the General 
Retail Trade, including Schedule A. 

The hearing was conducted in Washington on August 22, 23, and 
24. Every person who requested an appearance was heard in accord- 
ance with statutory and regulatory requirements. The Code has the 
approval of a substantial portion of the retail trade. 

II. price pro\t:sions 

The general retail hearing required three full days, and during the 
entire period the majority of witnesses presented statements to sub- 
stantiate their belief that it was imperative that regulations of a 
drastic nature be incorporated in the Retail Trade Code. 

Retailers were insistent that the Administration should recognize 
their position as expressed in the Code submitted regarding the " loss 
limitation " provisions and " trade practice " provisions affecting 
selling, pricing, and advertising policies. 

The Code had been given nation-wide publicity by the sponsoring 
associations prior to the hearing, and the conviction that these pro- 

(28) 



29 

visions must be included in the Code had become jfirmly entrenched 
in the minds of the great majority of those present, who claimed 
to reflect the attitude of the retailers in their respective communities. 
Retailers stated that in working under the wage and hour pro- 
visions of the substitute Retail Code, which had been in effect about 
30 days, operating expenses had been substantially increased due to 
the additions to pay rolls which required enlarged current cash out- 
lays, and that this new burden could not be carried by tens of 
thousands of financially weakened concerns unless provisions for 
protection against predatory price cutting became effective at once. 

III. LABOR PROVISIONS 

The elective provisions regarding wages, work hours, and store 
hours suggested by the Administration were generally accepted as 
equitable. 

The working hours may not be entirely satisfactory from a purely 
social viewpoint; but they represent a substantial reduction from 
the hours which prevailed in the retail trade. This reduction in 
working hours will restore emplojanent in retailing to the 1929 level. 

IV. ADMINISTRATION 

The provisions for administration of this Code are capable of 
providing the NRA and the retail trades with sufficient data to 
make recommendations for the limitation of certain provisions of 
the Code as herewith presented and/or the addition of further pro- 
visions to this Code which would be beneficial to the trade as a whole. 

The Administrator finds that — 

(a) The provisions of the Code as recommended comply in all 
respects with the pertinent provisions of clauses one and two, sub- 
section (a) of Section 3 of the National Industrial Recovery Act; 
and that 

(h) The applicant group imposes no inequitable restrictions on 
admission to membership therein, and is truly representative of the 
Retail Trade; and that 

(c) The provisions of the Code as recommended are 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 clauses one and two of the National Indus- 
trial Recovery Act. 

It is recommended, therefore, that the provisions of this Code be 
adopted immediately. 

Respectfully submitted, 

Hugh S. Johnson, 

Administrators 



CODE OF FAIR COMPETITION 

FOR THE 

RETAIL TRADE 



To effectuate the policies of Title I of the National Industrial 
Recovery Act the following provisions are established as a Code of 
Fair Competition for the Retail Trade. 

Article I. Application or Code 

Section 1. Application of Code. — The provisions of this Code, 
except such provisions as are included in Schedule A annexed hereto 
and in such other schedules as may subsequently be approved and 
annexed hereto, and except as hereinafter specifically provided, shall 
apply to all retailers and/or retail establishments trngaged in the 
retail trade as defined in Article II hereinafter. The provisions of 
Schedule A and such other schedu'es as may subsequently be annexed 
hereto shall apply only to those retailers and/or retail establishments 
as are specifically included within the provisions of such schedules. 

Section 2. Reqw.sf for separate Code. — Any division of the retail 
trade which has not participated in the formation or establishment 
of this Code may make application to the Administrator to operate 
under a separate Code of Fair Competition. The Administrator 
shall determine whether such division of the retail trade shall operate 
under this Code or under a separate Code, and may, if justice re- 
quires, stay the application of this Code to such division pending 
his decision or pending the approval by the President of the United 
States of a Code of Fair Competition for such division. 

Article II. Definition 

Section 1. Retail trade. — The term " retail trade " as used herein 
shall mean all selling of merchandise to the consumer and not for 
purposes of resale in any form, in the continental United States, 
excluding the Panama Canal Zone. It is provided, however, that 
the term shall not include the selling at retail of milk and its prod- 
ucts, tobacco and its products, and foods and foodstuffs, or the dis- 
pensing of drugs, medicines, and medical supplies by a physician, 
dentist, surgeon or veterinarian in the legitimate practice of his pro- 
fession; and it is further provided that the term shall not include 
any division of retail selling (except the selling of drugs and allied 
products) which is now or may hereafter be governed bv a separate 
Code of Fair Competition approved by the President oi the United 
States. 

Section 2. Retailer. — The term " retailer " as used herein shall 
mean any individual or organization engaged wholly or partially >n 
the retail trade. 

(30) 



31 

Section 3. Establishuient. — The term " establishment " as used 
herein shall mean any store or department of a store, shop, stand, 
or other place where a retailer carries on business, other than those 
places where the principal business is the selling at retail of products 
not included within the definition of retail trade. The term is also 
used herein to refer to the retailer who carries on business in such 
establishments. 

Section 4. Employee. — The term " employee " as used herein shall 
mean any person employed by any retailer, but shall not include 
persons employed principally in the selling at retail of products not 
included within the definition of retail trade. 

Section 5. Definitions of personnel. — {a) Executive: The term 
" executive " as used herein shall mean an employee responsible for 
the management of a business or a recognized subdivision thereof. 

(&) Professional person: The term " professional person" as used 
herein shall mean lawyers, doctors, nurses, research technicians, ad- 
vertising specialists, and other persons engaged in occupations 
requiring a special discipline and special attainments. 

(<?) Outside salesmen : The term " outside salesmen " as used herein 
shall mean a salesman who is engaged not less than sixty (60) per- 
cent of his working hours outside the establishment, or any branch 
thereof, by which he is employed. 

{d) Outside collector: The term "outside collector" as used 
herein shall mean a collector of accounts wiio is engaged not less than 
sixty (60) percent of his working hours outside the establishment, 
or any branch thereof, by which he is employed. 

{e) Watchmen and guards : The terms " watchmen " and " guards ' 
as used herein shall mean employees engaged primarih^ in watching 
and safeguarding the premises and property of a retail establishment. 

(/) Store detective : The term " store detective " as used herein 
shall mean an employee engaged exclusively in detective work. 

{g) Maintenance employee : The term " maintenance employee " as 
used herein shall mean an employee essential to the upkeep and/or 
preservation of the premises and property of a retail establishment. 

{h) Outside service employee: The term "outside service em- 
ployee " as used herein shall mean an employee engaged primarily 
in delivering, installing, or servicing merchandise outside the estab- 
lishment, and shall include stable and garage employees. 

(i) Junior employee : The term " junior employee " as used herein 
shall mean an employee under eighteen (18) years of age. 

{j) Apprentice employee : The term " apprentice employee " as 
used herein shall mean an employee with less than six (6) 'months' 
experience in. the retail trade. 

{k) Part-time employee : The term " part-time employee " as used 
herein shall mean an employee who works for less than the maximum 
work week. 

Section 6. Sovth. — The term " South " as used herein shall mean 
Virginia, West Virginia. Maryland, North Carolina, South Caro- 
lina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, 
Arkansas, Louisiana, Oklahoma, New Mexico, Texas, and the Dis- 
trict of Columbia. 

Section 7. Population. — Population shall be determined by ref- 
erence to the Fifteenth Census of the United States (U.S. Department 
of Commerce, Bureau of Census, 1930). 



32 

Article III. Effective Date 

The effective date of this Code shall be the second Monday after 
its approval by the President of the United States. 

Article IV. General Labor Provisions 

Section 1. Collective bargaining. — {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 purposes of collective bargaining or 
other mutual aid or protection. 

(&) No employee and no one seeking employment shall be re- 
quired as a condition of employment to joint 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, ap- 
proved or prescribed by the President. 

Section 2. Child labor. — On and after the effective date of this 
Code, no person under the age of sixteen (16) years shall be em- 
ployed, except that persons fourteen (14) and fifteen (15) years of 
age may be emj^loyed either — 

(a) for a period not to exceed three (3) hours per day on six 

(6) days per week, or 
(&) for one day per week, such day not to exceed eight (8) 
hours. 
In either case, all such hours of work shall be between 7 A.M. and 
7 P.M. and shall not conflict with the employee's hours of day school. 
It is provided, however, that no person under the age of sixteen (16) 
years shall be employed in delivering merchandise from motor 
vehicles. 

It is further provided that where a State law prescribes a higher 
minimum age no person below the age specified by such State law 
shall be emploj'ed within such State. 

Article V. Store Hours and Hours of Labor 

Section 1. Basic store and working hours. — On and after the 
effective date of this Code establishments in the retail trade shall 
elect to operate upon one of the following schedules gf store hours 
and hours of labor : 

Group A. — Any establishment may elect to remain open for 
business less than fifty-six (56) hours but not less than fifty- 
two (52) hours per week, unless its store hours were less than 
fifty-two (52) hours prior to June 1, 1933, in which case such 
establishment shall not reduce its store hours; no employee of 
these establishments shall work more than forty (40) hours 
per week, nor more than eight (8) hours per day, nor more 
than six (6) days per week. 



33 

Group B. — Any establishment may elect to remain open for 
business fifty-six (56) hours or more per week but less than 
sixty-three (63) hours per week; no employee of such estab- 
lishment shall work more than forty-four (44) hours per 
week, nor more than nine (9) hours per day, nor more than 
six (6) days per week. 

Group C. — Any establishment may elect to remain open for 
business sixty-three (63) hours or more per week; no em- 
ployee of such establishment shall work more than forty-eif^ht 
(48) hours per week, nor more than ten (10) hours per day, 
nor more than six (6) days per week. 
No employee shall w^ork for two or more establishments a greater 
number of hours, in the aggregate, than he would be permitted to 
work for that one of such establishments which operates upon the 
lowest schedule of working hours. 

No employee not included in the foregoing paragraphs, and not 
specifically excepted hereinafter, shall work more than forty (40) 
hours per week, nor more than eight (8) hours per day, nor more 
than six (6) days per week. 

Section 2. Schedule of hours to he posted. — On or within one week 
after the effective date of this Code every retail establishment shall 
designate under which of the groups set forth in the preceding sec- 
tion it elects to operate and shall post and maintain in a conspicuous 
place in the establishment a copy of such election showing its store 
hours and employee working hours. 

Section 3. Changes in store hours and employee worhing hours. — 
{a) No establishment may change from the group in which it has 
elected to operate except upon December 31 of every year. 

{h) Any establishment, however, may at any time increase its 
store hours, provided it maintains the basic employee work week of 
the group in which it originally elected to operate. 

(<?) Any establishment may, for a period not to exceed three (3) 
months during the Summer, temporarily reduce its store hours, but 
the weekly wages of its employees shall not on that account be 
reduced. 

Section 4. Exceptions to maxh7iii/in periods of labor. — [a) Pro- 
fessional persons^ outside salesmen., outside collectors^ watchmen., 
guards., and store detectives. — The maximum periods of labor pre- 
scribed in Section 1 of this Article shall not apply to professional 
persons employed and working at their profession, or to outside 
salesmen, outside collectors, watchmen, guards, and store detectives. 
(6) Maintenance and outside service e^nployees. — The maximum 
periods of labor prescribed in Section 1 of this Article shall not 
apply to maintenance and outside service employees; but such em- 
ployees shall not work more than six (6) hours per week above the 
maximum hours per week otherwise prescribed by Section 1 unless 
they are paid at the rate of time and one-third for all hours over such 
additional six (6) hours per week. 

[c) Executives. — Subject to the conditions set forth in Section 5 
of this Article, executives receiving $35.00 or more per week in cities 
of over 500,000 population, or receiving $30.00 or more per week in 
cities of 100.000 to 500,000 population, or receiving $27.50 or more 

29894—33 2 



34 

per week in cities of 25,000 to 100,000 population, or receiving $25.00 
or more per week in cities, towns, villages, and other places under 
25,000 population, may work in excess of the maximum periods of 
labor prescribed in Section 1 of this Article. In the South execu- 
tives paid not less than ten (10) percent below the wages just 
specified may work in excess of such maximum periods. 

{d) Peak periods. — At Christmas, inventory, and other peak times, 
for a period not to exceed two (2) weeks in the first six (6) months 
of the calendar year and not to exceed three (3) weeks in the second 
six (6) months, an employee whose basic work week is forty (10) 
hours may work not more than forty-eight (48) hours per week and 
nine (9) hours per day; an employee whose basic work week is forty- 
four (11) hours may work not more than fifty-two (52) hours per 
week and nine and one-half (9I/2) hours per day; an employee whose 
basic work week is forty -eight (48) hours may work not more than 
fifty-six (56) hours per week and ten (10) hours per day. All such 
work may be without the payment of overtime. 

Section. 5. Limitation upon number of persons working unre- 
stricted hours. — Notwithstanding the provisions of the foregoing 
sections of this Article, and regardless of the number of persons 
otherwise permitted to work unrestricted hours, the total number of 
workers in any establishment (whether such workers are executives, 
proprietors, partners, persons not receiving monetary wages, or oth- 
ers) who shall be permitted to work unrestricted hours snail not 
exceed the following ratio : In establishments comprised of twenty 
(20) workers or less the total number of workers who may work 
imrestricted hours (not including those workers specified in Section 
4 {a) of this Article) shall not exceed one worker for every five (5) 
workers or fraction thereof; in establishments comprised of more 
than twenty (20) workers the total number of workers who may 
work unrestricted hours (not including those workers specified in 
Section 4 (a) of this Article) shall not exceed one worker for every 
five (5) workers for the first twenty (20) workers, and shall not 
exceed one worker for every eight (8) workers above twenty (20). 

Section. 6. Hours of work to he consecutive. — The hours worked 
by an employee during each day shall be consecutive, provided that 
aia interval not longer than one hour may be allowed for each regu- 
lar meal period, and such interval not counted as part of the em- 
ployee's working time. Any rest period which may be given em- 
ployees shall not be deducted from such employee's working time. 

Section 7. Extra working hour on one day a week. — On one day 
each week employees may work one extra hour, but such hour is to 
be included within the maximum hours permitted each week. 

Section 8. Conflict with State laws. — When any State law pre- 
scribes for any class of employees shorter hours of labor than those 
prescribed in this Article, no employee included within such class 
shall be employed within such State for a greater number of hours 
than such State law allows. 

Article VI. Wages 

Section 1. Basic schedules of wages. — On and after the effective 
date of this Code, the minimum weekly rates of wages which shall be 



35 

paid for a work week as specified in Article V — whether such wages 
are calculated upon an hourly, weekly, monthly, commission, or any 
other basis — shall, except as hereinafter provided, be as follows : 

(a) Within cities of over 500,000 population, no employee shall be 
paid less than at the rate of $14.00 per week for a forty (40) hour 
work week, or less than at the rate of $14.50 per week for a forty- 
four (44) hour work week, or less than at the rate of $15.00 per 
week for a forty-eight (48) hour work week. 

(&) Within cities of from 100,000 to 600,000 population, no em- 
ployee shall be paid less than at the rate of $13.00 per week for a 
forty (40) hour work week, or less than at the rate of $13.50 per 
week for a forty-four (44) hour work week, or less than at the rate 
of $14.00 per week for a forty-eight (48) hour work week. 

((?) Within cities of from 25,000 to 100,000 population, no em- 
ployee shall be paid less than at the rate of $12.00 per week for a 
forty (40) hour work week, or less than at the rate of $12.50 per week 
for a forty-four (44) hour work week, or less than at the rate of 
$13.00 per week for a forty-eight (48) hour work week. 

\d) Within cities, towns, villages of from 2,500 to 25,000 popula- 
tion, the wages of all classes of employees shall be increased from the 
rates existing on June 1, 1933, by not less than twenty (20) percent, 
provided that this shall not require an increase in wages to more 
than the rate of $11.00 per week and provided further that no em- 
ployee shall be paid less than at the rate of $10.00 per week. 

(e) Within totcns, villages, and other places ivith less than 2,500 
population, the wages of all classes of employees shall be increased 
from the rates existing on June 1, 1933, by not less than twenty (20) 
percent, provided that this shall not require an increase in wages to 
more than the rate of $10.00 per week. 

The minimum wages paid to professional persons, outside sales- 
men, outside collectors, watchmen, guards, store detectives, and main- 
tenance and outside service employees shall be upon the basis of the 
basic employee work week upon which the establishment by which 
they are employed has elected to operate. 

The minimum wages of any employee not included in the fore- 
going paragraphs and not specifically excepted hereinafter shall be 
upon the basis of a forty (40) hour work week. 

Section 2. Juniors and apprentices. — Junior and apprentice em- 
ployees may l^e paid at the rate of $1.00 less per week than the 
minimum wage otherwise applicable; it is provided, however, that 
no employee shall be classified both as a junior and as an apprentice 
employee, and it is further provided that the number of employees 
classified as junior and as apprentice employees, combined, shall not 
exceed a ratio of one such employee to every five employees or frac- 
tion thereof up to twenty (20), and one such employee to every ten 
(10) employees above twenty (20). 

Section 3. Southern wage 'differential. — In the South, within cities 
of over 25,000 population, the minimum wages prescribed in the fore- 
going sections may be at the rate of $1.00 less per week ; within cities, 
towns, and villages of from 2,500 to 25,000 population the wages of 
all classes of employees shall be increased from the rates existing on 
June 1, 1933, by not less than twenty (20) percent, provided that 
this shall not require an increase in wages to more than the rate of 



36 

$10.00 per week, and provided further that no employee shall be paid 
less than at the rate of $9.00 per week except as provided in Section 
2 of this Article; within cities, towns, villages, and other places 
under 2,500 population the wages of all classes of employees shall 
be increased from the rates existing on June 1, 1933, by not less 
than twenty (20) percent, provided that this shall not require an 
increase in wages to more than the rate of $9.00 per week. 

Section 4. Part-time einployees. — Part-time employees shall be paid 
not less than at an hourly rate proportionate to the rates prescribed 
in the foregoing sections of this Article. 

Section 5. Weekly wages above mininimn not to he reduced. — The 
weekly wages of all classes of employees receiving more than the 
minimum wages prescribed in this Article shall not be reduced 
from the rates existing upon July 15, 1933, noth withstanding any re- 
duction in the number oi working hours of such employees. 

Section 6. Conflict with State laws. — ^When any State law pre- 
scribes for any class of employees of either sex a higher minimum 
wage than that prescribed in this Article, no employee of such class 
of either sex emploj^ed within that State shall be paid less than such 
State law requires. 

Article VII. Limitations Upon Price Increases ; Prior Contracts 

Section 1. Limitation upon price increases. — No retailer shall in- 
crease the price of any merchandise sold after the effective date of 
this Code over the price existing June 1, 1933, by more than is made 
necessary by the amount of increases in production, operating, re- 
placement, and/or invoice costs of merchandise, and/or by taxes or 
other costs resulting from action taken pursuant to the National 
Industrial Recovery Act and/or the Agricultural Adjustment Act 
since June 1, 1933, and in setting such price increases retailers shall 
give full weight to probable increases in sales volume. It is pro- 
vided, however, that if any price on June 1, 1933, was a distress 
price, an equita}3le adjustment may be made. 

Section 2. Adjustment of prior contracts. — ^Where costs of execut- 
ing contracts entered into before June 16, 1933, by any retailer for 
the purchase of goods at fixed prices for delivery during the dura- 
tion of this Code are increased by the application of the provisions 
of the National Industrial Recovery Act and/or the Agricultural 
Adjustment Act, it is deemed equitable and promotive of the pur- 
poses of the Act that appropriate adjustments of such contracts to 
reflect such increased costs actually incurred be arrived at by mutual 
agreement or arbitral proceedings or otherwise, and the National 
Hetail Trade Council provided for in Article I hereinafter is con- 
stituted an agency to assist in effecting such adjustments. 

Article VIII. Loss Limitation Provision 

Section 1. Loss limitation provision. — In order to prevent unfair 
competition against local merchants, the use of the so-called "loss 
leader " is hereby declared to be an unfair trade practice. These 
" loss leaders " are articles often sold below cost to the merchant for 
the purpose of attracting trade. This practice results, of course, 



37 

either in efforts by the merchant to make up the loss by charging 
more than a reasonable profit for other articles, or else in driving 
the small merchant with little capital out of legitimate business. It 
works back against the producer of raw materials on farms and in 
industry and against the labor so employed. 

1. This declaration against the use of " loss leaders" by the store- 
keeper does not prohibit him from selling an article without any 
profit to himself. But the selling price of articles to the consumer 
should include an allowance for actual wages of store labor, to be 
fixed and published from time to time by the Trade Authority here- 
inafter established. 

2. Such an allowance for labor need not be included in the selling 
price of any article of food, or be applied by storekeepers doing busi- 
ness only in communities of less than 2,500 population (according to 
the 1930 Census) which are not part of a larger trade area. 

Provided, however, That any retailer may sell any article of mer- 
chandise at a price as low as the price set by any competitor in his 
trade area on merchandise which is identical or essentially the same, 
if such competitor's price is set in conformity with the foregoing 
provision. A retailer who thus reduces a price to meet a competitor's 
price as above defined shall not be deemed to have violated the pro- 
visions of this section if such retailer immediately notifies the nearest 
representative retail trade organization of such action and all facts 
pertinent thereto. 

Section 2. ExccptioTis. — {a) Notwithstanding the provisions of the 
preceding section, any retailer may sell at less than the prices 
specified above, merchandise sold as bona fide clearance, if adver- 
tised, marked, and sold as such; highly perishable merchandise, which 
must be promptly sold in order to f orstall loss ; imperfect or actually 
damaged merchandise, or bona fide discontinued lines of merchan- 
dise, if advertised, marked, and sold as such ; merchandise sold upon 
the complete final liquidation of any business; merchandise sold in 
quantity on contract to public carriers, departments of government, 
hospitals, schools and colleges, clubs, hotels, and other institutions, 
not for resale and not for redistribution to individuals ; merchandise 
sold or donated for charitable purposes or to unemployment relief 
agencies ; and drugs or drug sundries sold to physicians, nurses, den- 
tists, veterinarians, or hospitals. 

(&) Nothing in the provisions of the preceding section shall be 
construed to prevent bona fide farmers' associations engaged in pur- 
chasing supplies and/or equipment for their membership from mak- 
ing patronage refunds to their membership. 

(c) Where a bona fide premium or certificate representing a share 
in a premium is given away with any article the base upon which 
the minimum price of the article is calculated shall include the cost 
of the premium or share thereof. 

Article IX. Trade Practiobs 

All retailers shall comply with the following trade practices: 
Section 1. Advertismg and selling tixetJiods. — (a) No retailer shall 
use advertising, whether printed, radio, or display or of any other 
nature, which is inaccurate in any material particular or misrepre- 



38 

sents merchandise (including its use, trade-mark, grade, quality, 
quantity, size, origin, material, content, preparation, or curative or 
therapeutic e^ect) or credit terms, values, policies, or services; and 
no retailer shall use advertising and/or selling methods which tend 
to deceive or mislead the customer, 

(b) No retailer shall use advertising which refers inaccurately in 
any material particular to any competitor or his merchandise, prices, 
values, credit terms, policies, or services. 

(c) No retailer shall use advertising which inaccurately lays 
claim to a policy or continuing practice of generally underselling 
competitors. 

(d) No retailer shall secretly give anything of value to the em- 
ployee or agent of a customer for the purpose of influencing a sale, 
or in furtherance of a sale render a bill or statement of account to 
the employee, agent, or customer which is inaccurate in any material 
particular. 

(e) No retailer shall place obstacles in the way of the purchase of 
a product which a consumer orders by brand name by urging upon 
the consumer a substitute product in a manner which disparages the 
product ordered. 

Section 2. N.E.A. label. — No retailer shall purchase, sell, or ex- 
change any merchandise manufactured under a Code of Fair Compe- 
tition which requires such merchandise to bear an N.R.A. label, unless 
said merchandise bears such label. An}'' retailer rightfully possess- 
ing the insignia of the N.R.A. who has in stock or purchases similar 
merchandise which has been manufactured before the effective date 
of the Code of Fair Competition requiring guch merchandise to bear 
an N.E.A. label may attach thereto the N.R.A. insignia. 

Section 3. Prison-made goods. — Pending the formulation of a 
compact or code between the several States of the United States to 
insure the manufacture and sale of prison-made goods on a fair com- 
petitive basis with goods not so produced, the following provisions of 
this section will be stayed for ninety (90) days, or further at the 
discretion of the Administrator: 

{a) Where any penal, reformatory, or correctional institution,, 
either by subscribing to the code or compact hereinbefore referred 
to, or by a binding agreement of any other nature, satisfies the 
Administrator that merchandise produced in such institution or by 
the inmates thereof will not be sold except upon a fair competitive 
basis with similar merchandise not so produced, the provisions of 
paragraph (&) hereof shall not apply to any merchandise produced 
in such manner in the institutions covered by such agreement. 

(b) Except as provided in the foregoing paragraph, no retailer 
shall knowingly buy or contract to buy any merchandise produced 
in whole or in part in a penal, reformatory, or correctional institu- 
tion. After May 31, 1934, no retailer shall knowingly sell or offer 
for sale such merchandise. Nothing in this section, however, shall 
affect contracts, which the retailer does not have the option to cancel, 
made with respect to such merchandise before the approval of this 
Code by the President of the United States. 

(c) Nothing in this section shall be construed to supersede or 
interfere with the operation of the Act of Congress approved Jan- 
uary 19, 1929, being Public No. 669 of the 70th Congress and entitled 



39 

"An Act to Divest Goods, Wares, and Merchandise Manufactured, 
Produced or Mined by Convicts or Prisoners of their Interstate Char- 
acter in Certain Cases ", which Act is known as the Hawes-Cooper 
Act, or the provisions of any State legislation enacted under, or 
effective upon, the effective date of the said Hawes-Cooper Act, the 
said effective date being January 19, 1934. 

Section 4. Comipany ftcri/p. — The following provisions of this Sec- 
tion shall not become effective until March 1, 1934. Pending such 
effective date the Administrator shall appoint a committee of not 
more than three persons to investigate the economic and social impli- 
cations of these provisions. Said committee may make recommen- 
dations, based upon its investigations, and such recommendations 
shall, upon approval by the President of the United States, become 
effective in the place ol these provisions : 

{a) No retailer shall accept as payment for merchandise any non- 
negotiable scrip, company checks, or other evidence of wage payment 
issued by any individual or private profit organization in payment 
of wages or as an advance upon unearned wages. A negotiable 
instrument issued by any individual or private profit organization 
in payment of wages shall be accepted only if it is payable in cash 
within one month of the date of issue. This paragraph shall not 
apply in cases where the cash funds of any individual or organiza- 
tion are rendered temporarily unavailable due to the closing by State 
or Federal order of the bank in which such funds are deposited. 

{!)) No retailer shall extend credit in the form of goods, money, or 
services to any person other than its own employees engaged exclu- 
sively in the retail trade, upon any employer's guarantee of part 
or all of said person's future wages, or pursuant to a wage-deduction 
arrangement entered into with said employer, unless an identical 
guarantee or wage-deduction arrangement is available to all retailers. 

Article X. Administration 

The following provisions for the administration of this Code shall 
not apply to the retail drug trade, which shall be governed by the 
provisions of Section 5 of Schedule A annexed hereto. 

Section 1. Retail Trade Authority. — The Retail Trade Authority 
shall consist of the Administrator or his Deputy and three members 
appointed by the President of the United States, who shall advise 
and assist the Administrator or his Deputy. Members of the Retail 
Trade Authority shall be members, without vote, of the National 
Retail Trade Council provided for hereinafter. 

Section 2. National Retail Trade Council. — (a) C omj)osition. — 
.The National Retail Trade Council shall consist of at least one, but 
not more than three, representatives from each major division of 
the retail trade presenting this Code or hereafter subscribing to it, 
as the Administrator shall designate. 

Such representatives shall be elected, in accordance with a fair 
method approved by the Administrator, by the national trade asso- 
ciations representing the above divisions of the retail trade. Where 
more than one national trade association each represents a portion 
of a single division of the retail trade, the Administrator shall, for 
the purpose of establishing the membership of the National Retail 



40 

Trade Council in the first instance, determine whether such associa- 
tions are trul}^ representative and what shall be the number and 
proportionate vote of such associations upon the Council; after the 
initial establishment of the Council such decisions shall be made by 
the Council subject to an appeal to the Administrator. Kefjardless 
of the number of its representatives, each division of the retail trade 
shall have one vote in all action taken by the National Retail Trade 
Council. 

(b) General 'poicers. — The National Eetail Trade Council shall, 
in addition to the specific powers herein conferred, have all general 
powers necessary to assist the Administrator or his Deputy in the 
administration and enforcement of this Code. 

{c) Reports and investigations. — The National Retail Trade 
Council shall, subject to the approval or upon the request of the Ad- 
ministrator, require from all retailers such reports as are necessary 
to effectuate the purposes of this Code, and may, upon its own ini- 
tiative or upon complaint of any person affected, make investiga- 
tion as to the functioning and observance of any provisions of the 
Code and report the results of such investigation to the Admin- 
istrator. 

{cl) Recommendations. — The National Retail Trade Council may 
from time to time present to the Administrator recommendations 
(including interpretations) based on conditions in the trade, which 
will tend to effectuate the operation of the provisions of this Code 
and the Policy of the National Industrial Recovery Act. Such rec- 
ommendations shall, upon approval by the Administrator, become 
operative as part of this Code. 

((?) Local committees. — The National Retail Trade Council shall, 
subject to the approval of the Administrator, supervise the setting 
up, within local trading areas, of local committees for the purpose of 
assisting in the administration and enforcement of this Code within 
such local areas. 

(/') Ex'penses. — The expenses of the National Retail Trade Coun- 
cil shall be equitably assessed and collected by the Council, subject 
to the approval of the Administrator. 

Section 3. Regional Advisory C ommittee. — The National Retail 
Trade Council shall, subject to the approval of the Administrator, 
appoint annually a Regional Advisory Committee consisting of one 
member appointed from and representing each major geographical 
section of the country as established by Federal Reserve Districts. 
It shall be the function of the Regional Advisory Committee to serve 
in an advisory capacity to the Administrator and to the National 
Retail Trade Council on matters pertaining to the administration 
of this Code in the respective districts. The Committee shall meet 
subject to the call of the Administrator, the National Retail Trade 
Council, or the Committee's chairman. 

Section 4. National Retail Trade Economics Board. — The National 
Retail Trade Economics Board shall consist of five (5) members 
appointed by the President of the United States or by the Admin- 
istrator. Such Board shall observe and study the economic effects 
and results of the various provisions of this Code and shall report 
from time to time to the Administrator. 



41 

Section 5. Interpretations. — The Administrator may from time 
to time, after consultation with the National Retail Trade Council, 
issue such administrative interpretations of the various provisions 
of this Code as are necessarj^ to effectuate its purposes, and such 
interpretations shall become operative as a part of this Code, unless 
the Administrator shall otherwise specify. 

Section 6. Exceptions in cases of unusual or undu£ hardship. — 
Where the operation of the provisions of this Code impose an 
unsual or undue hardship upon any retailer or group of retailers, 
such retailer or group of retailers may make application for relier 
to the Administrator or to his duly authorized agent, and the Ad- 
ministrator or his agent may, after such public notice and hearing 
as he may deem necessary, grant such exception to or modification 
of the provisions of this Code as may be required to effectuate the 
purpose of the National Industrial Recovery Act. 

Article XI. General 

Section 1. Membership in associations. — Membership in the na- 
tional retail associations represented upon the National Retail Trade 
Council, or in any affiliated associations, shall be open to all retailers 
of that portion of the retail trade which said associations respec- 
tively represent and said associations shall impose no inequitable 
restrictions upon admission to membership therein. 

Section 2. Information to he furnished Government agencies. — In 
addition to information required to be submitted to the National 
Retail Trade Council, there shall be furnished to Government agen- 
cies such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3 (a) of the National 
Industrial Recovery Act. 

Section 3. Prohibition against monopolies. — The provisions of 
this Code shall not be interpreted or applied to promote monopolies 
or monopolistic practices or to eliminate or oppress small enterprises 
or to discriminate against them. 

Section 4. Prohihition against use of suhterfuge. — No retailer 
shall use any subterfuge to frustrate the spirit and intent of this 
Code, which is, among other things, to increase employment by 
universal covenant, to remove obstructions to commerce, to shorten 
hours of work, and to raise wages to a living basis. 

Section 5. Right of President to cmicel or modify. — This Code and 
all the provisions thereof are expressly made subject to the right of 
the President, in accordance with the provisions of 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 Title I of said Act. 

Section 6. Modifications and supplementary provisions. — 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 as changes in conditions or 
experience may indicate. It is contemplated that from time to time 
supplementary provisions to this Code or additional Codes will be 



42 

submitted for the approval of the President to prevent unfair com- 
petitive practices and to effectuate the other purposes and policies of 
Title I of the National Industrial Kecovery Act. 

Sec. 7. Expiration.. — This Code shall continue in effect until 
June 16, 1935, or the earliest date prior thereto on which the Presi- 
dent shall by proclamation, or the Congress shall by joint resolution, 
declare that the emergency recognized by Section 1 of the National 
Industrial Recovery Act has ended. 

Approved Code No. 60. 
Registry No. 1625/2/02. 



SCHEDULE A 

SUPPLEMEJNTAI. PROVISIONS APPLICABLE TO RETTAIL DRXTG ESTABLISHMENTS AND 

TO ALL Retailers Dealing in Drugs and Allieid Products 

In acklition to the foregoing provisions of this Code, the following supple- 
mental provisions shall apply to retail drug establishments and to all retailers 
dealing in drugs and allied products. 

Section 1. Definitions 

(1) Retail drug trade. — The term "retail drug trade" as used herein shall 
mean all selling to the consumer and not for the purpose of resale in any fonn. 
of drugs, medicines, cosmetics, toilet preparations, drug sundries, and/or allied 
items, in the continental United States excluding the Panama Canal Zone. It 
is provided, however, that the term " retail drug trade " shall not include the 
dispensing of drugs, medicines, and medical supplies by a physician, dentist, 
surgeon, or veterinarian in the legitimate practice of his profession. 

(2) Drug retailer. — The term " drug retailer" as used herein shall mean any 
individual or organization engaged wholly or partially in the retail drug trade. 

(3) Retail drug establi^shment. — The term "retail drug establishment" as 
used herein shall mean any store or department of a store engaged in the retail 
drug trade, but shall not include stores or departments in which the principal 
business is the selling at retail of products other than drugs, medicines, cos- 
metics, toilet preparations, drug sundries, and/or allied items. 

(4) Drugs. — The term "drug" as used herein shall mean all medicinal sub- 
stances and preparations recognized in the United States Pharmacopoeia and 
National Formulary or any supplements thereto, and all substances and prepa- 
rations intended for external or internal use in the cure, mitigation, treatment, 
or prevention of disease in man or other animals, and all substances and prep- 
arations other than food (but including medicinal or quasi-medicinal prepara- 
tions, such as those sold or pi-oduced primarily for their vitamin content), 
intended to affect the structure or any function of the body of man or other 
animals. 

(5) Cosmetics and toilet preparations. — The term "cosmetics" and the term 
" toilet preparations " as used herein shall mean toilet articles and perfumes, 
toilet waters, face powders, face creams, rouges, shaving creams, dentifrices, 
soaps, and similar substances and preparations designed and intended for ap- 
plication to the person for the purpose of cleansing, improving the appearance 
of, refreshing or preserving the person. 

(6) Drug sundries. — The term "drug sundries" as used herein shall mean 
such articles as are used in conjunction with, but not included in, " drugs ", 
" cosmetics ", or " toilet preparations." 

(7) Registered pharmacist, assistant pharmacist, apprentice pharmacist. — 
The terms " registered pharmacist ", " assistant pharmacist ", and " apprentice 
pharmacist ", as used herein shall have the meaning given to them under the 
laws of the respective states of the United States and of Alaska. 

(8) Curb boys or girls. — The term "curb boys or girls" as used herein shall 
mean employees engaged exclusively in serving curb customers. 

Section 2. Store Hours and Hours of Labor 

(1) Group D, for retail drug establishments. — In place of any of the schedules 
of store hours and hours of labor set forth in Article "V, Section 1, retail drug 
establishments may elect to remain open for business seven (7) days a week 
for a total of eighty-four (84) hours or more per week, but on no day for less 
than eight (8) hours; no employee of such establishment, except as provided 
in Article V, Sections 4 and 5, shall work more than fifty-six (56) hours per 
week, nor more than ten (10) hours per day, nor more than thirteen (13) days 
In any two consecutive weeks. 

(43) 



44 

(2) Exception in ca-se of phamwcists. — ^The maximum hours of labor pre- 
scribed in Article V and in paragraph (1) of this section shall not apply to 
registered pharmacists, assistant pharmacists, and apprentice pharmacists, ena- 
ployed and working as such, who may worli ten (10) percent above the max- 
imum hours otherwise applicable, or more in cases of emergency. 

SiXTnoN 3. Wages 

(1) BaMc rates for retail drug establishm>ents electing to operate in Group 
D. — No employee of a retail drug establisliment which has elected to operate 
in Group D as set forth above, shall, except as provided in Article VI, Sections 
2 and 3, be paid for a fifty-six (56) hour worli weel^ less than at the rate of 
$16.00 per week in cities of over 500.000 population, or less than at the rate of 
|l5.00 per week in cities of from 100,000 to 500,000 population, or less than at 
the rate of $14.00 per week in cities of from 25,000 to 100,000 population; in 
cities, towns, and villages of from 2.500 to 25.000 population, the wages of all 
classes of employees of such establishments shall be increased from the rates 
existing on June 1, 1933, by not less than twenty (20) percent, provided that 
this shall not require an increase in wages to more than the rate of $11.00 
per week, and provided further that no employee shall be paid less than at the 
rate of $10.00 per week ; in towns, villages, and other places with less than 
2,500 population, the wages of all classes of employees of such establishments 
shall be increased from the rates existing on June 1, 1933, by not less than 
twenty (20) percent, provided that this shall not require an increase in wages 
to more than the rate of $10.00 per week. 

(2) Exception for establishments employing curb hoys or girls. — The mini- 
mum wages prescribed in Article VI and paragraph (1) of this section may 
not apply to curb boys or girls employed by retail drug establishments when 
such employees are i>aid upon a commission basis. 

SEcyiTON 4. Trade Peactices 

In addition to the trade practices set forth in Article IX, all drug retailers 
shall comply with the following : 

(a) No drug retailer shall substitute another article or any part thereof for 
the kind ordered, without due notice to and consent of the customer. 

(&) No drug retailer shall advertise to fill prescriptions at a uniform price 
irrespective of cost of ingredients or quantity prescribed. 

(c) No drug retailer shall permit any demonstrator or sales employee, whose 
salary is wholly or partially paid by a manufacturer or distributor, to work in 
his establishment unless such demonstrator or sales employee is clearly and 
openly identified as the agent of such manufacturer or distributor. 

Sektion 5. Administration 

The administration of this Code, including this Schedule, insofar as it relates 
to the retail drug trade, .shall be governed by the following provisions : 

(1) Retail Drug Trade Authority. — The Retail Drug Trade Authority shall 
consist of the Administrator or his Deputy, and three members appointed by 
the President of the United States, who shall advise and assist the Adminis- 
trator or his Deputy. Members of the Retail Drug Trade Authority shall be 
members, without vote, of the National Retail Drug Trade Council, provided 
for hereinafter. 

(2) National Retail Drug Trade Council. — (a) Composition. — The National 
Retail Drug Trade Council shall consist of one representative from the American 
Pharmaceutical Association, one representative from the Drug Institute of 
America, Inconiorated, two representatives from the National Association of 
Retail Druggists, and such representation from any national association of the 
retail drug trade as may be approved by the Administrator. 

Such representatives shall be elected, in accordance with a fair method ap- 
proved by the Administrator, by the respective national trade associations. 

(&) General powers. — The National Retail Drug Trade Council shall in 
addition to the specific powers herein conferred, have all general powers neces- 
sary to assist the Administartor or his Deputy in the administration and en- 
forcement of this Code insofar as it relates to the retail drug trade. 



45 

(c) Reports and investigationa. — The National Retail Drug Council shall, 
subject to the approval or upon the request of the Administrator, require from 
all drug retailers such reports as arc nc(,-essary to effectuate the purposes of 
this Code insofar as it relates to the retail drug trade, and may, upon its own 
initiative or upon complaint of any person affected, make investigation as to 
the functioning and observance of any provisions of the Code relating 
to the retail drug trade and report the results of such investigation to the 
Administrator. 

(d) Recommendations. — The National Retail Drug Trade Council may from 
time to time present to the Administrator recommendations (including inter- 
pretations), based on conditions in the retail drug trade 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 part of this Code. 

(e) Local committees. — The National Retail Drug Trade Council shall, sub- 
ject to the approval of the Administrator, supervise the setting up within local 
trading areas of local committees for the purpose of assisting in the adminis- 
tration and enforcement of this Code within such local areas insofar as it 
relates to the retail drug trade. 

if) Expenses. — The expenses of the National Retail Drug Trade Council 
shall be equitably assessed and collected by the Council, subject to the approval 
of the Administrator. 

(3) Interpretations. — The Administrator may from time to time, after con- 
sultation with the National Retail Drug Trade Council, issue such administra- 
tive interpretations of the various provisions of this Code relating to the retail 
drug trade as are necessary to effectuate its purposes, and such interpretations 
shall become operative as part of this Code unless the Administrator shall 
otherwise specify. 

(4) Exceptions in cases of unu^iMl or undue hardship. — ^Where the operation 
of the provisions of this Code imposes an unvisual or undue hardship upon any 
drug retailer or group of drug retailers, such drug retailer or group of drug 
retailers may make application for relief to the Administrator or to his duly 
authorized agent, and the Administrator or his agent may, after such public 
notice and hearing as he may deem necessary, grant such exception to or modi- 
fication of the provisions of this Code as may be required to effectuate the 
purposes of the National Industrial Recovery Act. 

o 



Approved Code No. 61 

CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRIAL SUPPLIES AND MACHINERY 
DISTRIBUTORS' TRADE 

As Approved on October 23, 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, 1938, for mj^ approval of a Code 
of Fair Competition for the Industrial Supplies and Machinery 
Distributors' Trade, 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 hav- 
ing 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 
8 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 dministrator. 
The White House, 

Ootoher 23, 1933. 

29895 296-164 34 (47) 



October 12, 1933. 
The President, 

The 'White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Industrial Supplies and Machinery Distributors' Trade 
in the United States, conducted in Washington on September 2T, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. 

PROVISIONS or THIS CODE AS TO WAGES AND HOURS 

A maximum work week of 40 hours and not to exceed more than 
8 hours per day is adopted under this Code with provision for 48 
hours' maximum during three weeks of any six months' period to be 
averaged down to 40 hours per week. 

Executives receiving more than $35.00 per week, watchmen, and 
outside salesmen are excepted from the schedule of minimum hours, 
while service employees, those engaged in plant maintenance, and 
stock-room employees may work a maximum of 48 hours with pay- 
ment of time and one third for all hours worked in excess oi 40 
hours. 

No person under 16 years of age shall be employed and none under 
18 employed in any hazardous occupation. 

The mmimum rates of pay shall be $15.00 per week in cities and 
trade areas of 500,000 population or more, $14.50 per week in cities 
and trade areas of 250,000 to 500,000 population, and $14.00 if the 
population is over 2,500 and not more than 250,000. In towns of 
not more than 2,500, all wages of such employees shall be increased 
by not less than 20%, provided that this shall not require wages 
in excess of $12.00 per week. 

Part-time employees in each area shall receive a minimum hourly 
wage in relation to 40 hours and the minimum weekly rate. 

Learners and junior employees shall receive not less than $2.00 
per week less than the minimum rate and not more than 5% of the 
total number of employees can be so classified. 

ECONOMIC EFFECT OF THE CODE 

The 40-hour week stipulated in the Code is a reduction from an 
average of more than 48 hours per week, and the trade estimates 
that under the provision of the Code the number of employees will 
be increased 20 percent. 

The minimum wage rates specified represent an increase of from 
20 to 100 percent over the wages i)revailing in the same classifications 
before the adoption of the President's Re-employment Agreement. 

The importance of the trade is evidenced by the fact that its mem- 
bers normally employ 27,000, have a capital investment of 
$172,000,000, and have normal average annual sales of $335,000,000. 

(48) 



49 

This trade distributes machinery and industrial supplies — to rail- 
roads, ships, mines, mills, factories, and contractors. It is nation- 
wide, its customers including all users of industrial supplies and 
machinery. 

The combination of two sectional divisions of trade under one 
Code is extremely gratifying. Each division will be properly rep- 
resented in the worlc of administration by regional committees, act- 
ing under the supervision of the Code Authority. These committees 
will not only relieve the Code Authority of local details of adminis- 
tration, but are truly representative of the regions from which tliey 
are elected. 

riNDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, witliout 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 
Industrial Supplies and Machinery Distributors Trade; 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 Recovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE^F FAIR COMPETITION 

FOR THE 

INDUSTRIAL SUPPLIES AND MACHINERY DISTRIBUTORS' 

TRADE 

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 Industrial Supplies and Machinery Dis- 
tributors' Trade, and upon approval by the President, shall be the 
standard of fair competition for this trade. 

Article II — DEriNiTioNS 

Section 1. The term " Industrial Supplies and Machinery Dis- 
tributors' Trade ", or " trade ", as used herein, includes the ware- 
housing, selling, distributing, and/or servicing in conjunction there- 
with of tools, equipment, and supplies for railroads, ships, boats,, 
mines, mills, factories, and/or other industrial users. 

Sec. 2. A Distributor of Industrial Supplies and Machinery shall 
be defined as one who sells to industrial consumers and other trade 
outlets ; and who has at least the following facilities and services : 

(a) "An adequate investment, 

(b) Storage space sufficient to carry the stock required in Para- 
graph (e) herein and necessaiy facilities for operating same, 

(c) A proper accounting system, sales, office, and delivery service, 

(d) Regularly maintains salesmen in his territory to demonstrate 
and sell the lines handled, 

(e) Carries a sufficiently complete purchased stock of industrial 
tools, equipment, and supplies to meet normal requirements in his 
territory, 

(f ) Assumes the credit risk of his sales. 

Nothing in this Section 2, Article II, however, shall be construed 
to exclude in any way as a member of the trade and/or from the 
operation of this Code, anyone who sells tools, equipment, and sup- 
plies to the industrial users described in Section 1, Article II hereof 
except with the approval of such exclusion by the Administrator. 

Sec. 3. The term " employee " as used herein includes any person 
engaged in any phase of the trade in any capacity in the nature of 
employee, irrespective of the method of payment of his compensation. 

Sec. 4. The term " employer " as used herein includes anyone for 
whose benefit such an employee is so engaged. 

Sec. 5. The term " member of the trade " as used herein includes 
any employer who shall be subject to this Code. 

Sec. 6. The term " member of the Code " as used herein includes 
any member of the trade who shall expressly signify assent to this 
Code. 

(50) 



51 

Sec. 7. The term " effective date " as used herein means the tenth 
day after this Code shall have been approved by the President of the 
United States. 

Sec. 8. The term " learner " as used herein is a person having no 
previous experience in the trade, and whose employment as such 
shall not exceed 6 months. 

Sec. 9. The term " act " as used herein is Title I of the National 
Industrial Recovery Act. 

Sec. 10. The term "Administrator " as used herein is the National 
Recovery Administrator. 

Sec. 11. Population for the purposes of this Code shall be deter- 
mined by reference to the 1930 Federal Census. 

Article III — Hours 

On and after effective date of this Code. 

Section 1. No employee in the Trade, except as hereinafter pro- 
vided, shall be emplo3^ed for more than eight (8) hours in any one 
day nor for more than forty (40) hours in any one week, nor for 
more than six (6) days in any one week; provided, however, that 
during inventory and other peak periods, such employees may be 
permitted to work not more than forty-eight (48) hours in any one 
week, or not more than three (3) weeks in any six (6) months period; 
provided, further, that the average shall not be more than forty (40) 
hours per week in any six (6) months period. 

Sec. 2. The limitation of Section 1 of this Article III as to hours 
of work shall not apply to persons in a managerial, executive, or 
supervisory capacity, who now receive more than $35.00 per week, or 
to watchmen and outside salesmen. 

Sec. 3. The limitation of Section 1 of this Article III as to hours 
of work shall not apply to persons engaged in outside delivery serv- 
ice, plant maintenance, outside repair, and/or installation service, 
nor to persons engaged in stock receiving and shipping service, who 
shall be permitted to work not more than forty-eight (48) hours in 
any one week, provided time and one third is paid for all hours 
worked in excess of forty (40) hours per week. 

Sec. 4. No person under the age of sixteen (16) years shall be 
employed by any member of the Trade, and no person under the 
age of eighteen (18) years shall be employed in any hazardous 
occupation. 

Sec. 5. The total number of hours which shall be worked by any 
employee whether with one or more employers, shall not exceed 
the maximum as prescribed herein. 

Article IV — Wages 

On and after effective date of this Code. 

Section 1. (a) The minimum rates of pay except as prescribed 
in Section 2 of this Article IV shall be as follows in cities of the 
population listed below and their immediate trade areas : 

Over 600,000 population not less than $15.00 per week; 

250,000 to 500,000 population not less than $14.50 per week; 

2,500 to 250,000 population not less than $14.00 per week. 



52 

In towns of less than 2,500 population, all wages of such em- 
ployees shall be increased by not less than 20%, provided that this 
shall not require wages in excess of $12.00 per week. 

Sec. 2. No part time or casual employee shall be paid at a rate per 
hour less than the minimum rates prescribed in Section 1 of this 
Article IV, which minimum rates are based on a forty (40) hour 
week, applying to the area in which the employer is located. 

Sec. 3. Learners may be paid at the rate of $2.00 less per week 
than the minimum rates prescribed in Section 1 of this Article IV, 
provided that in no case shall the minimum be less than $12.00 per 
week. 

Sec. 4. Junior employees between the ages of sixteen (16) and 
eighteen (18) years, inclusive, with less than six (6) months' experi- 
ence in the trade, may be paid at a rate of $2.00 less per week than 
the minimum rates prescribed in Section 1 of this Article IV, pro- 
vided that in no case shall the minimum be less than $10.00 per 
week. 

Sec. 5. Such learners and junior employees mentioned in Sections 
8 and 4 of this Article IV emploj-ed by any one employer shall not 
exceed in number more than five (5) percent of the total number of 
employees of such employer, provided that each employer may have 
at least one learner or junior employee. 

Sec. 6. No employee now receiving compensation at a rate in excess 
of the minimum herein prescribed shall have his compensation re- 
duced on account of any reduction in the weekly hours of employ- 
ment to conform with the requirements of Article III. 

Sec. 7. The hourly wage rate or salary of all employees receiving 
more than the minimum rate or salary herein prescribed shall be 
equitably adjusted, if such adjustments have not already been made. 

Sec. 8. No distinction in rates shall be made between male and 
female employees, where the same class of work is performed, regard- 
less of whether compensation is calculated on an hourly, weekly, or 
monthly basis. 

Sec. 9. No employee shall be included in one of the classifications 
excepted from the provisions of this Code unless the identical func- 
tions were identically classified on June 16, 1933. 

Sec. 10. No person who has worked as a learner for one member 
of the trade for the period of time prescribed under the term 
" learner " in Article II may thereafter be classified as a learner. 

Sec. 11. No employer shall reduce the compensation for employ- 
ment now in excess of the minimum wages herein prescribed, not- 
withstanding that the hours worked in such employment may be 
hereby reduced. 

Sec. 12. The provisions for a minimum wage in this Code estab- 
lish a guaranteed rate of pay per hour or per week of employment, 
regardless of whether the employees' compensation is calculated on 
an hourly, weekly or monthly basis. 

Article V — Administration' 

Section 1. To further effectuate the policies of the Act, a Code 
Authority is hereby set up to cooperate with the Administrator in 
the administration of this Code. 



53 

(a) The Code Authority shall consist of eight members of the 
Trade (no two of whom shall represent the same member) and one 
or more appointees of the Administrator if he so desires. The latter 
shall have no vote. The members of the Code Authority shall be 
elected by the members of the Trade, each member of the Trade to 
have only one vote. Such election shall be by mail ballots, which 
ballots shall be sent to all members of the Trade. The Code 
Authority shall complete its own organization by election of officers. 

(b) Any member of the Trade is eligible for membership in the 
Code and there shall be no inequitable restrictions on such mem- 
bership. Any such member may participate in the preparation and 
any revision of and additions or supplements to this Code by ac- 
cepting his proper pro rata share of the cost and responsibility of 
creating and administering^^ it, either by becoming a member of 
the National Supply and Machinery Distributors' Association or 
the Southern Supply Machine Distributors' Association or by pay- 
ing to the Code Authority his pro rata share of the costs, based on 
the dollar volume of sales by the entire trade. There shall be no 
initiation fee for members of the Trade who participate only in 
the Code and do not become members of one of the said Associations. 

Sec. 2. The Code Authority shall have the following duties and 
powers to the extent permitted by the Act and subject to review 
by the Administrator: 

(a) To collect from persons in the Trade all data, reports, and 
statistics when and as required by the President and/or the Admin- 
istrator and/or thei-r agent or agents. Such information shall be 
confidential. Each member shall send his data to a neutral agency 
designated by the Code Authority. This neutral agency shall as- 
semble all such data and present it to the Code Authority without 
the names of the members of the Trade submitting such data. This 
data with names shall be available to the Administrator, if required 
by him. Keports submitted by the Code Authority to the President 
and/or the Administrator and/or his or their agent or agents shall 
be in the form prescribed and/or approved by him. Nothing in this 
paragraph shall be construed as limiting the powers conferred on 
the President and/or the Administrator by Title I of the Act. 

(b) 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 neces- 
sary for the purpose recited in Section 3 (a) of the National 
Industrial Recovery Act. 

(c) To represent the Trade in conferring with the President or 
his agents with respect to the administration of this Code and in 
respect of the Act and any regulations issued thereunder. 

(d) To arrange for a Regional Committee in each territorial area 
to assist the Code Authority in administering the code. Each such 
Regional Committee shall consist of not more than three (3) mem- 
bers of the trade in such area, elected by the members of the trade in 
such area. 

(e) To appoint such agents as it may deem necessary to assist in 
administering this code. 

(f ) To hear and investigate complaints and attempt to adjust 
the same in accordance with law. 



54 

(g) To study the trade-practice provisions of Article VI and the 
operation thereof, and make such recommendation from time to time 
to the Administrator as it deems desirable for modification of or 
addition thereto, which, upon the approval of the President, after 
such hearing as he may prescribe, shall become a part of this Code 
and have full force and effect as provisions hereof. 

(h) To make rules and regulations necessary for the administra- 
tion of this Code, subject to the approval of the Administrator. 

(i) To report to the Administrator on behalf of the trade on the 
subject of imported articles competing with products distributed 
by the trade under provisions of Section 3 (a) of the Act. 

Article VI — Unfair Competition 

The following practices are hereby declared to be unfair methods 
of competition within the meaning of the Act : 

Section 1. Sales below the individual's cost. Cost is to be deter- 
mined by a standard cost-accounting system to be set up by the Code 
Authority and subject to the approval of the Administrator. It is 
expressly understood that this shall not apply to items on which the 
published or suggested prices of manufacturers do not provide a 
margin sufficient to cover the individual's cost as determined by the 
above-mentioned standard cost-accounting system. 

Sec. 2. Where in any particular territory, members of the Trade 
desire to file price lists with such agency as may be approved by the 
Code Authority, it is a violation of the Code for such members to 
sell below their individually filed schedules covering prices, terms, 
and conditions. Such schedules are to be subject to change at any 
time by filing a new schedule, which shall be effective five (5) days 
after filing. 

Sec. 3. The payment or allowance of secret rebates, refunds, dis- 
counts, commissions, or other special considerations or allowances, in- 
cluding donations, gifts, or premiums of any nature whatsoever, to 
any firm or individual. 

Sec. 4. The issuance of false invoices or other documents covering 
sales in which the prices, terms, discounts, allowances, or other facts 
relating to the transaction are in any manner falsely stated. 

Sec. 5. Discrimination in prices between purchasers of the same 
class under similar conditions except for differences in the grade, 
quality, or quantity purchased. 

Sec. 6. Delivering merchandise which fails to conform exactly to 
the samples or specifications on which prices are quoted. 

Sec. T. Agreeing to conditions or terms of sale, or making prom- 
ises of any nature which manifestly cannot be fulfilled. 

Sec. 8. Accepting orders for future delivery subject to cancellation. 

Sec, 9. Inducing or attempting to induce the cancellation of orders 
or the breach of contracts existing between competitors and their 
customers. 

Sec. 10. Misrepresentation of facts about a competitor or his prod- 
uct. 

Sec. 11. Quoting a total price on any schedule of industrial sup- 
plies and machinery which does not show unit prices and making any 
addition or deduction on any other basis than the unit price shown. 



55 

Sec. 12. It is an uneconomical and an unfair practice for distribu- 
tors to ship any goods on consignment, except products of manufac- 
turers whose general plan of distribution is by consignment and not 
by sale for resale. 

Article VII — Scope of Code 

In the absence of any contrary provision herein concerning such 
trade practice, each member of the trade shall in dealing with a 
product manufactured by a member of an industry operating under 
another Code of Fair Competition, conduct such dealing in con- 
formity with any pertinent trade-practice provisions in such other 
Code. 

Article VIII — General 

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 ; 

Sec. 2. 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 

Sec. 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. 

Sec. 4. 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 oi 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, 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. 

Sec. 5. Within each State, members of the trade shall comply with 
any laws of such State imposing more stringent requirements regulat- 
ing the age of employees, wages, hours of work, or health, fire, or 
general working conditions, than under this Code. 

Sec. 6. If any employer in this trade is also an employer in any 
other trade or industry the provisions of this Code shall apply and 
affect only that part of the business of such employer which is a 
part of the trade covered by this Code. 

Sec. 7. Where the costs of executing contracts entered into this 
trade are increased as a result of the enactment of the National In- 
dustrial Recovery Act and/or by the provisions of this Code, or 
where any contract entered into by an employer subject to this Code, 
is inconsistent with the provisions thereof, it is equitable and pro- 
motive of the purposes of the Act that appropriate adjustments of 
such contracts be arrived at by arbitral proceedings or otherwise, and 
the Code Authority is constituted an agency to assist, with the con- 
sent of the buyer in effecting such adjustments. Further, that where 



56 

the performance of orders 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. 

Sec. 8. 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 con- 
templated 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 destructive competitive practices, and to effectuate the other 
purposes and policies of Title I of the National Industrial Recovery 
Act consistent with the provisions thereof. 

Sec. 9. Prior to December 31, 1933, no member of the trade shall 
increase the sale price of his goods sold after the effective date 
hereof over the price on July 1. 1933, by more than is made necessary 
by actual increases in manufacturing, distribution, and material 
costs, or by taxes or other costs resulting from action taken pursuant 
to the Agricultural Adjustment Act and/or this Code since July 1, 
1933, and in setting such price increases full weight shall be given 
to probable increases in sales volume. In case a member of the trade 
on July 1, 1933, was selling his product at less than actual cost, 
he may take his cost price on that date as the base for such increase 
in selling price as is permitted by this section. 

Sec. 10. No provision in this Code shall be interpreted or applied 
in such manner as to — 

(a) Promote monopolies or monopolistic practices; 

(b) Permit or encourage unfair competition; 

(c) Eliminate or oppress small enterprises; or 

(d) Discriminate against small enterprises. 

Article IX 

This Code shall be in effect beginning on the tenth day after its 
approval by the President and shall be binding upon all persons 
engaged in the trade. 

Approved Code No. 61. 
Registry No. 1899/1/16. 

o 



Approved Code No. 62 
CODE OF FAIR COMPETITION 

FOR THE 

STEEL TUBULAR AND FIREBOX BOILER 
INDUSTRY 

As Approved on October 23, 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 Steel Tubular and Firebox Boiler In- 
dustry, 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 haA'e been met: 

NOW. THEREFORE, I, Franklin D. Roosevelt, President of the 
United States. 2:>ursuant 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. 

Administrator. 

The White House, 

October 23, 1933. 

29931 296-165 34 (67) 



October 7, 1933. 
The President, 

The 'White House. 
Sir : This is a report of the hearing on the Code of Fair Compe- 
tition for the Steel Tubular and Firebox Boiler Industry in the 
United States, conducted in Washington on September 28, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISIONS or THIS CODE FOR HOURS AND WAGES 

Factory employment is limited to 40 hours per week, except on 
emergency or erection work, for which the time-and-a-half rate will 
be paid for inside work and double time for outside work. Execu- 
tives, outside salesmen, and watchmen are not included in this sched- 
ule of hours. Where production requires less hours of work, the days 
per week may be reduced by agreement between employers and 
employees. New apprentices can be employed only with the consent 
of the Industry Committee and the Administrator, whose decisions 
will be based on the local unemployment conditions. 

The minimum wage provided for factory workers will be 40 cents 
per hour except in specified southern states where the minimum will 
be 34 cents. Old or disabled employees will be paid no less than 
80 percent of this minimum. The minimimi wage for all other 
emploj'ees, except commission salesmen, will be not less than $15 per 
week, office boys and girls receiving no less than 80 percent of this 
minimum. The minimum age of employees will be 16 years. 

ECONOMIC EFFECT OF THE CODE 

The 40-hour normal week for factory employees, with the addi- 
tional pay for overtime, should tend to level employment peaks in 
this Industry and increase the number of workers. Though exact 
figures on this increase are not obtainable, it may be noted that the 
adoption of the 40-hour week under the Re-Emploj^ment Agreement 
and recent improved business have increased employment, from 
April 1st to September 1st, 45 percent. 

As a result of the minimum wages provided, the average wage 
rate increase over those in effect April 1, 1933, has been estimated at 
19 percent. The average minimum wage rate last April was 
approximately 30 cents and on September 1st, 36 cents. 

The labor provisions of this Code conform, as agreed, to those 
of the Boiler Manufacturing Code. Steel Tubular and Firebox 
Boilers include the stationary type used in buildings. They are sold 
parti}' direct and partly through jobbers and contractors, in accord- 
ance with standard price lists and catalogs. 

The comprehensive provisions of this Code on trade practices are 
substantially the same as those already established by the Steel Heat- 

(68) 



59 

ing Boiler Institute, the members of which include 66 percent of 
the manufacturers and have 94 percent of the total volume of busi- 
ness. The practices incorporated in this Code provide a more liberal 
interpretation and more extensive application of the statutes, ade- 
quately standardizing and improving the trade conditions of the 
Industry as a whole. 

This Industry has suffered severe losses during the depression. 
Sales have dropped from $21,000,000 in 1928 to about $5,000,000 in 
1932; and the number of employees from 3,300 to a third of that 
figure the early part of this year. Only by increased business, which 
will come about, largely through an upturn in construction, can 
this capital goods Industry put a large number of employees back 
to work. In arriving at the terms expressed in the Code, it has 
shown its cooperation in complying with the spirit of the Act. 

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 
Steel Tubular and Firebox Boiler 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, 

Hugh S. Johnson, 

A dmmis trot or. 



CODE OF FAIR COMPETITION 

FOR THET 

STEEL TUBULAR AND FIREBOX BOILER INDUSTRY 

Article I — Purposes 

The following provisions are established as a Code of Fair Com- 
petition for the Steel Tubular and Firebox Boiler Industry in order 
to effectuate the policy of Title I of the National Industrial Recovery 
Act. 

Article II — Definitions 

The term " Steel Tubular and Firebox Boiler Industry " as used 
herein (hereinafter abbreviated to "this industry") is defined to 
mean all manufacturers of steel heating boilers as defined in Section 
IV, Sub-Section I, of the Boiler Code of the American Society of 
Mechanical Engineers; also, for all working pressures, Scotch type 
boilers for stationary use, vertical fire tube boilers, horizontal firebox 
type boilers, tubeless boilers, oil country boilers, miniature boilers. 

The term " member of this industry " as used herein is defined to 
mean, but without limitation, all persons, partnerships, or corpora- 
tions who manufacture any of the above-specified items. 

The term " member of the Code " as used herein is defined to mean 
any member of this industry who signifies assent to this Code. 

Article III — Hours 

Section 1. (a) No employer shall employ, in any labor operations, 
any person more than 40 hours per week, five consecutive days and 
eight consecutive hours per day, exclusive of meal period, except 
watchmen and/or as provided under paragraph (b), provided, how- 
ever, that where it is necessary to work less than 40 hours per week, 
the hours may be divided by agreement between the employer and 
the employees to a lesser number of days per week, but in no case 
shall the hours exceed nine per day. 

(b) In cases of emergency production, repair or erection work 
that cannot be met by the employment of additional men and/or 
it becomes necessary, in order to protect life or property, to exceed 
the hours scheduled in Section I (a), all such excess time shall be 
paid for at the rate of not less than one and one-half times the hourly 
rate for shop work. For all outside repair, renewal, construction 
and/or erection work, not less than double the hourly rate shall be 
paid for all such excess time. 

(c) No new apprentices shall be employed in the industry except 
that the Executive Committee (as designated in Article VI), sub- 
ject to the approval of the Administrator, may grant the employment 
of such new apprentices if in his judgment the existing surplus of un- 
employed local labor is absorbed in reasonably steady employment. 

(60) 



61 

This is not to be construed to prohibit instruction of mechanics al- 
ready employed in this industry. 

(d) For all other employees except executives, executives' secre- 
taries, administrative and supervisory employees, and traveling and 
commission salespeople, the time worked shall not be in excess of 40 
hours per week. 

Sec. 2. No employee shall be employed or permitted to work for 
one or more employers in this industry in the aggregate in excess of 
the prescribed number of hours in a single week; provided, however, 
that if any employee works for more than one employer for an aggre- 
gate period in excess of such maximum without the connivance of 
any one of such employers, said employer shall not be held to have 
violated this provision. 

Article IV — Wages 

Section 1. (a) The minimum wages that shall be paid by any 
employer to any employee of the Steel Tubular and Firebox Boiler 
Industry in labor operations directly incident thereto shall be 34^ 
per hour for the Southern territory and 40^ per hour for all other 
portions of the United States. The Southern territory is located 
South of the States of Maryland, West Virginia, and Kentucky and 
East of the Mississippi River. 

(b) Old or partially disabled employees unable to perform their 
usual duties are not included in the alDove labor provisions, except 
that they shall in no case be paid less than 80% of the above mini- 
mum, and provided that the total number of such employees shall 
not exceed 5% of the total number employed by any one employer 
or where less than forty (40) persons are employed such employer 
shall be entitled to two (2) employees of this class. 

(c) The minimum wage that shall be paid by any employer to all 
employees, other than these covered in Section I (a) and (Id) except 
commission salespeople, shall not be less than $15 per week; provided, 
however, that office boys and girls may be paid not less than 80% 
of such minimum wage, but the total number of such office boys or 
girls shall not exceed in any calendar month 5% of the total number 
of all employees covered by the provisions of this Section I (c) and 
provided further that where a State law provides a higher minimum 
wage, no person shall be paid a lower wage than that required by 
such law, within that State. 

Sec. 2. No employee shall be classified in any one of the exempted 
classes defined in tliis Article and in Article III. unless he performs 
functions substantially identical with those performed by employees 
thus classified on June 16, 1933. 

Article V — General Labor Provisions 

Section 1. No employer shall employ any person under sixteen 
years of age. Provided, that where a State law provides a higher 
minimum age, no person below the age specified by such State law 
shall be employed within that State. 

Sec. 2. All employers in this industry shall comply with the pro- 
visions of Sub-Section (a). Section 7, of the National Industrial 



62 

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 ac- 
tivities 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 maximum hours of labor, minimum rates of pay, 
and other conditions of employment, approved or prescribed by 
the President. 

Sec. 3. Any system of contracting shop work by which an em- 
ployee undertakes to do a piece of work at a specific price, and 
engages other employees to work for him, is prohibited by this 
Code. 

Sec. 4. The wage differentials for all operations shall be equitably 
readjusted and in no case shall they be decreased. No unfair advan- 
tage shall be taken of any employee in making this Code effective. 
Each member of this industry shall report all such readjustments to 
the Manager within 30 days of the effective date. 

Sec. 5. No employer shall contract for the fabrication and/or erec- 
tion of any of the products of this industry with any employer or 
employee except when such employer or employee agrees to comply 
with the labor provisions of this Code during the performance of 
the contract. 

Sec. 6. Each employer shall post in each workshop and on central 
notice board in his factory the labor provisions of this Code. 

Article VI — Administration 

Section 1. The Steel Heating Boiler Institute, hereinafter desig- 
nated as the S.H.B.L, shall not impose any inequitable restrictions on 
admission to membership. 

Sec. 2. The Executive Committee of the S.H.B.L, to membership 
of which the President may appoint one nonvoting member, is 
hereby designated an Agency to cooperate with the Administrator 
in the administration and enforcement of this Code, and for this 
purpose shall appoint a full-time manager who, subject to approval 
of the Executive Committee and the Administrator, shall (a) attempt 
to determine within the industry as to whether any member has, 
or has not, adhered to the provisions of this Code; (b) act as the 
industry's representative in all dealings with the Government; (c) 
conduct any investigation or survey within this industry that might 
be of general benefit to this industry. 

Sec. 3. With a view to supplying data as to the observance or 
nonobservance of the Code, each member of this industry shall make 
such reports relating to matters covered by this Code at such times 
and in such form as the Executive Committee of the S.H.B.L, sub- 
ject to the approval of the Administrator, shall prescribe. Such 
reports shall be received by the Manager. The Executive Committee 
of the S.H.B.L may require said reports to be substantiated by 



63 

oath. If the manager has reason to believe that any report of any 
member is inaccurate, such report may be verified by inspection of 
the books and records of such member by a disinterested and im- 
partial agency designated by the Executive Committee of the 
S.H.B.I., subject to tlie approval of the Administrator. The said 
reports shall be held in confidence by the Manager except insofar 
as disclosure may be necessary for the effective enforcement of this 
Code. 

Sec. 4. Nothing in this Code shall preclude furnishing of com- 
piled data to the members of this industry by the Manager. 

Sec. 5. In addition to information required to be submitted to the 
Executive Committee of the S.H.B.I. there shall be furnished to 
government agencies such statistical information as the Administra- 
tor may deem necessary for the purposes recited in section 3 (a) 
of the National Industrial Kecovery Act. 

Sec. 6. Members of this Code shall be entitled to participate in 
the Code activities of the S.H.B.I. 

Sec, 7. Each member of the Code shall contribute his equitable 
and proportionate share toward the cost of administration of this 
Code, either by becoming a member of the S.H.B.I. or by paying 
an amount equal to that portion of the dues and/or assessments paid 
by members of the S.H.B.I. which are used to defray the expense 
of administration of this Code. 

Sec. 8. Upon request of the manager each member of the Code 
shall submit data necessary for prorating this expense. Each mem- 
ber of this Code shall pay his prorated share of this expense upon 
demand of the Treasurer of the S.H.B.I. 

Sec. 9. Each member of this industry shall report to the man- 
ager any infraction of a provision of this Code by any other mem- 
ber of this industry where said infraction affects the reporting 
member's business. 

Sec. 10. Each member of this industry who violates any pro- 
visions of this Code is liable to the penalty prescribed by the Na- 
tional Industrial Recovery Act. 

Article VII — Trade Practices 

Sec. 1. In order to promote fair competition and prevent discrim- 
ination between purchasers, the following provisions shall be ob- 
served and practiced by all members of this industry : 

(a) Prices, terms, and discounts shall be openly and publicly an- 
nounced, and to this end they shall be issued in printed form by the 
individual manufacturer. 

(b) All offers to sell which take the form of a quotation shall 
represent the true prices and terms at which the manufacturer will 
sell the goods covered by the quotation then being made, and any 
omission of parts, or the furnishing of additional equipment shall 
be reflected in the selling price. 

(c) All goods sold shall be invoiced at the true selling prices. 

(d) No member of this industry shall disseminate false or mis- 
leading information relative to competitor's products, selling prices, 
credit standing, ability to perform work, or labor conditions among 
competitor's employees. 



64 

(e) No member shall give any gratuity to any person, including, 
but without limitation, any natural person, partnership, association 
or corporation, to induce such person to specify, allow, or approve 
the products of a particular manufacturer. 

(f) No member shall allow unjust claims for alleged shortage or 
breakage. 

(g) No member of this industry shall circulate, not in good faith 
but for the purpose of harassing and intimidating customers, threats 
of suit for infringement of patents or trade marks among customers 
of a competitor. 

(h) No member of this industry shall attempt to induce the breach 
or abandonment of any contract between a member and his customer. 

(i) No member of this industry shall be a party to commercial 
bribery in any form or under any condition. 

(j) No member of this industry shall enter into a written or oral 
agreement with any person that one or more clauses of the contract 
or the specification will not be enforced, thereby receiving an unfair 
advantage over competitors. 

(k) No member of this industir shall make a deposit for the priv- 
ilege of receiving plans and specifications and the opportunity to bid 
on a contract without an agreement that the return of the full 
amount of the deposit will be made upon the return of the said plans 
and specifications to the issuer. 

(1) The members of this industry manufacture and sell equipment 
and this industry does not look with favor on guarantees of any 
character other than those relating to materials and workmanship, 
and under no condition shall any maintenance guarantees be made. 
No member of this industry shall promise a better performance or 
make a higher guarantee than previous experience indicates can be 
obtained. 

(m) No member of this industry shall accept a contract contain- 
ing a penalty clause either for performance of the apparatus sold 
or for time of delivery, unless the contract shall also contain a clause 
providing a bonus to the member at the same rate as the rate of 
penalty, except with the approval of the Executive Committee whose 
decision shall be subject to approval of the Administrator. 

(n) All quotations shall be made in accordance with published 
price lists and any items not covered by such price lists shall be in- 
cluded in the quotation with price list items and shall be itemized 
at the normal selling price. 

(o) All members shall include in all price lists, quotations and 
contracts such general terms, discounts, freight terms, and guarantees 
as may be prescribed by the Executive Committee subject to approval 
of the Administrator, 

(p) All members shall send to the Manager two copies of price 
sheets and catalogs and as many additional copies as he may require 
for distribution to other members. 

(q) Any member making any change in a published price list 
shall mail notice to the manager five business days prior to effective 
date of such change and concurrently shall place in the mail notices 
to all known competitive members giving details of change. Other 
members by mailing notices to the manager and to all other known 
competitive members may make price list change effective the same 



65 

date as specified in the notice received. The operation of the fore- 
going at all times shall be subject to the approval of the Adminis- 
trator. 

Sec. 2. No member of this industry shall sell any of his products 
at or below cost. Cost shall be determined by a system of cost 
accounting approved by the Executive Committee, subject to the 
approval of the Administrator. 

Article VIII — Monopolies 

No provision in this Code shall be interpreted or applied in such 
manner as to (a) permit monopolies or monopolistic practices, (b) 
permit or encourage unfair competition, (c) eliminate, discriminate 
against, or oppress small enterprises. 

Article IX — Modifioatign 

Section 1. 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 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. 

Sec. 2. 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 the approval of the 
President to prevent unfair competition in price and other unfair 
and destructive competitive practices. 

Article X — Effective Date 

Section 1. This code shall be effective as the Code of Fair Com- 
petition for the Steel Tubular and Firebox Boiler Industry on the 
second Monday following date of approval by the President of the 
United States. 

Sec. 2. This Code shall continue in effect for a period of ninety 
days after the effective date of approval and thereafter until termi- 
nated as hereinafter provided. It may be terminated at any time 
after the expiration of such period by the same action by members 
of the Code 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 ac- 
cordance with the provisions of the Code and those for liquidation 
damages theretofore accrued under any provisions of the Code. 

Approved Code No. 62. 
Registry No. 1129/1/17. 



Approved Code No. 63 

CODE OF FAIR COMPETITION 

FOR THE 

PLUMBAGO CRUCIBLE INDUSTRY 

As Approved on October 23, 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 
Eecovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Plumbago Crucible Industry, and hear- 
ings having been held thereon and the Administrator having ren- 
dered 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 the said Act have been met: 

NOW. THEREFOEE, 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 reconnnended : 
Hugh S. Johxson. 

Adminht tutor. 

TiiK White House, 

Octoler 23, 1033. 

29101° 296-83- 34 (67) 



October 12, 1933. 
The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Plumbago Crucible Industry in the United States, con- 
ducted in Washington on October 4, 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

This Code limits the hours of work for employees to -10 a week, 
except as follows : 

When demand places an unusual burden upon production em- 
ployees may work 48 hours a week during one week in each month 
and will be paid time and one half for overtime in excess of 40 hours 
weekly. Kiln burners on continuous-process operations who have 
previously been employed up to 72 hours per week are now limited 
to 48 hours a week. This work is not laborious and is in the nature 
of a specialized or technical watchman's duties. The step down to 
48 hours is a marked advance over the longer week. Usually two 
men only are needed for this work in each plant. Care and mainte- 
nance workers, stock and shipping clerks are given a 10 percent 
tolerance over the 40-hour week. Emergency maintenance and re- 
pair workers may exceed 40 hours, receiving the time and a half over- 
time wage. 

The minimum wage provided is 40 cents to all employees except 
those physically handicapped. 

Employees engaged in accounting, clerical, sales, and service work 
will receive not less than $15.00 per week. Office boys and girls are 
to be paid not less than 80 percent of this latter figure. 

The minimum age of factory employees will be 18 years, and of 
other employees, 16 years. 

ECONOMIC EFFECT OF CODE 

This Industry is contributing to reemployment by putting back 
to work approximately 28 percent of those employed on February 
16, 1932. This will be accomplished through the reduction of nor- 
mal hours from 48 to 40. While this is comparatively a small In- 
dustry, a large percentage of skilled workmen are required. 

The minimum hourly rate for employees was 30 cents prior to 
adjustments made to conform with the spirit of the National Re- 
covery Act. The increase in minimum hourly rates to 40 cents, and 
adjustments in wages to those in higher brackets, together with the 
new employees added, will represent an increase of over 30 percent 
in weekly pay roll, or approximatelj' $60,000 yearly. 

One provision under Trade Practices is unusual : 

Article VII, Section II, adherence to standards, eliminates the sale 
of second quality crucibles. This provision prevents the danger to 

(68) 



I 



69 

operatives ^vhi('ll ini(>lit occur if inferior (imilily prcjdiicts of llie In- 
dustry were distributed and used. Safety of ijcrforniauce beiu<j; a 
first consideration, high quality becomes essentiah The crucibles, 
accessories and refractories containing l)luniba<i:o or graphite, are 
sold for use in melting metals in the ferrous and nonferrous fields. 
Sales of the Industry duiing the first six months of this year were 
iibout a third the rate of those in ll)2t), whicli follows tlie trend of 
other cajiital goods distribution. Then, too, although the products 
arc essential in production of many highest (luality metals, they 
coni])ete in some markets with electric furnaces. Only by increasing 
business, which will depend largely upon activity in the metal in- 
dustry where these products are used, can this Inchistry [)ut a large 
percentage of employees back to work. In arriving at the terms ex- 
pressed in the Code, it has shown its cooperation in complying with 
the spirit of the Act. 

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 that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Plumbago Crucible Industry, 

(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 reconnnended, therefore, that this Code be immediately 
adopted. 

Respectfully, 

Hugh S. Johnson, 

Administvatoi'. 



CODE OF FAIR COMPETITION 

FOR THE 

PLUMBAGO CRUCIBLE INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I oi the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Plumbago Crucible Industry, and upon 
approval by the President, shall be the standard of fair competition 
for this industry. 

Article II — Definitions 

The term '* Plumbago Crucible Industry " as used herein is defined 
to mean the manufacture for sale of crucibles, retorts, saggers, covers, 
stoppers, lids, stirring rods, brazing boxes and similar refractory 
products, all of which contain flake plumbago or graphite, irrespec- 
tive of the amount of flake plumage or graphite contained therein. 

The term " employee "' as used herein includes any person engaged 
in any phase of the industrj' in any capacity in the nature of 
employee irrespective of the method of payment of his compensation. 

The term " employer " as used herein includes anyone for whose 
benefit such an employee is so engaged. 

The term " member of the inclustr}' " includes any manufacturer 
who shall be subject to this Code. 

The term *' member of the code " includes any member of the 
industry who shall expressly signify assent to this Code. 

The terms " President ", "Act", and "Administrator '' as used 
herein shall mean respectively the President of the United States, 
the XatioTial Industrial Recover}^ Act, and the Administrator of said 
Act. 

" Effective date " as used herein means the first Monday after this 
Code shall have been approved by the President of the United 
States. 

Article III — Hours 

1. On and after the effective date no employee shall work or be 
permitted to work in excess of 40 hours in any one w^eek, with the 
following exceptions : 

(a) Kiln burners shall be permitted to work not to exceed 48 
hours in any one week, and 

(b) There shall be a tolerance of ten percent (10%) over the 
maximum of 40 hours worked in any one week for employees en- 
gaged in the cai'e and maintenance of plant and machinery, and for 
stock and shipping clerks. 

(c) During any period in Avhich a concentrated demand upon the 
Industry shall place an unusual and temporary burden for produc- 

(70) 



71 

tion upon its facilities, employeos may be pci-iiiitted to woik not 
more than 48 hours per week iji not nioi-e tliaii one week of any one 
month's period; provided, liowever, that in such special cases time 
and one half shall be paid for hours worked in excess of eight hours 
per day. 

2. These limitations as to hours of labor shall not ai)ply to pei'sons 
employed in a supervisory capacity receiving more than $3'5.00 per 
week, nor to outside salesmen, field-service men, and watchmen; pro- 
vided, however, that watclnnen shall have one day of rest in seven. 

3. The maximum hours fixed in this Article III shall not apply 
to employees on emergenc}' maintenance and repair woik or to very 
special cases where restriction of hours of highly skilled woi'kei-s 
would unavoidably reduce or delay production, but in any such spe- 
cial case time and one half shall be paid for hours worked in excess 
of 8 hours per day or 40 hours per week, and provided that not more 
than seven and one half (71/2) percent of the total pay roll for skilled 
employees in any one week period shall be employed in excess of the 
maximum of 40 hours per week on such special cases. 

Article IV — ^Wages 

1. On and after the effective date the minimum wage that shall 
be paid to any employee by any employer in the Plumbago Crucible 
Industry shall be iorty (40) cents per hour, except as provided in 
Section 6 of this Article IV. Where earnings of employees on 
piece-work rates are under the minimum wage required by this 
section 1 of Article IV, such rates shall be so adjusted as to conform 
with aforesaid minimum wage. 

2. To assure employment to workers who are physically handi- 
capped and to avoid their becoming a burden to the state, such 
employees are exempted from the provisions of this Article IV, pro- 
vided, however, that such employees shall not exceed in number 
five (5) percent of the total number of workers employed by a 
member of the industry. 

3. Each employer shall report to the Administrator through the 
Supervisory Agency, if and when required, the action taken by such 
employer in adjusting the hourly wage rates for all employees re- 
ceiving more than the minimum rates provided in Section 1 of this 
Article IV, excepting those engaged in a supervisory capacity re- 
ceiving more than $35.00 per week. 

4. In determining his classification under this Code, each em- 
ployer shall be entitled to claim the benefit of the classification of 
occupations existing on June 16, 1933. 

6. On and after the effective date all accounting, clerical, sales 
and service employees shall be paid at a rate of not less than $15.00 
per week, provided, however, that office boys or girls may be paid 
not less than 80 percent of such minimum wage, but the total amount 
paid to such office boys or girls at such reduced rate shall not ex- 
ceed in any calendar month 714 percent of the total amount paid by 
such employer to all emplo^^ees covered by the proAnsions of this 
paragraph 5. 

6. Every employer shall post in conspicuous places in his plant 
a full copy of this Code. 



72 

Article V — Child Laror 

No iKM'son under eio-hteen (18) 3-ears of age shall be employed on 
maimfacturJiig processes in the industry and no person under six- 
teen (IG) years of age shall be eniplo3'ed as a messenger or in office 
or other^Avork. 

Article VI — Administratiox 

1. To further effectuate the policies of the Act, a Supervisory 
Agency is hereby set up to cooperate Avith the Administrator in the 
administration of this Code. 

2. The Supervisory Agency shall consist of five (5) individuals, 
or such otlier number as may be approved from time to time by 
the Administrator, to be selected as hereinafter set forth. The 
Administrator, in his discretion, may appoint not more than three 
(3) adtlitional members (who shall be without vote), to represent 
the Administrator or such groups or interests as may be agreed upon. 

3. The Supervisory Agency shall be elected at a meeting of the 
members of the industiy called immediately after the approval by 
the President of this Code and held immediatel}' prior to the effective 
date thereof. The meeting shall be called by the Crucible Manufac- 
turers Association and notice thereof shall be sent by telegram or 
registered mail a reasonable time in advance of the meeting to all 
known members of the industry. The notice shall specifically state 
that voting at the meeting may be in person or by proxy. The mem- 
bers of the Supervisor}' Agency shall be elected by a majority vote 
of tlie employers present, in person or by proxy as such, each 
emi^loyer to have one vote. 

4. Vacancies on the Supervisor}^ Agency caused by death or resig- 
nation or because a member has ceased to be connected with the 
Industry, shall be filled in the same manner indicated in Section 8 of 
this Article VI and such meeting or meetings called for the purpose 
shall be called and notices sent out in exactly the same manner as 
when electing the members of the Supervisory Agenc}' in the first 
instance. 

5. AVith a view to keeping the President and the Administrator 
informed as to the observance or nonobservance of this Code, and as 
to whether the Plumbago Crucible Industry is taking appropriate 
steps to effectuate in all respects the declared policy of the National 
Industrial Recovery Act, each member of the industry shall prepare 
and file with such person or organization as the Supervisory Agency 
may designate, if and whenever required by the Administrator, an 
earnings statement and balance sheet, statistics of plant capacity, 
volume of production, volume of sales in units and dollars, orders 
i-eceived, 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 Administrator 
may fi'om time to time require. 

G. In addition to the information required to be submitted to the 
Supervisory Agenc}-, there ^hall be furnished to government agencies 
such statistical information as the Administrator maj^ deem neces- 
sary for the purpose recited in Section 3 (a) of the National In- 
dustrial Recovery Act. 



73 

7. Except as otherwise provided in the Natioiiiil Industrial Recov- 
ery Act, all statistics, data, and information filed in jtccoi-dance with 
the provisions of Section 5 of this Article VI shall he confidential, 
and the statistics, data, and information of one member of the indus- 
try shall not be revealed to any other member. For the purpose of 
facilitating the administration and enforcement of the provisions of 
this Code, the Supervisory Agency, by their duly autiiorized repre- 
sentatives (who shall not be in the employ of any employer affected 
by this Code), and subject to the approval of the Administrator, 
shall have access to any and all statistics, data, and information that 
may be furnished in accordance with the provisions of this Code. 

Article VII — Participation 

Members of the industry shall be entitled to participate in and 
share the benefits of the activities of the Supervisory Agency and to 
participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expense of its administration. The rea- 
sonable share of the expenses of administration shall be determined 
by the Supervisory Agency, subject to review b}' the Administrator, 
on the basis of volume of business and/or such other factors as may 
be deemed equitable to be taken into consideration. 

Article VIII — Trade Practices 

1. Within ten days after the effective date each membe}- of the 
industry shall file with every other member, through the Super- 
visory Agency, a complete list of its then existing crucible prices, 
delivery joints, terms, conditions of sale, and trade discounts, and 
shall file in like manner all changes therein as and when made. 

2. Credits. — Each member of the Industry shall exercise his own 
free and independent judgment with respect to credits he will extend 
to his trade, but it is the sense of the industry that a liberal and fair 
credit information exchange shall be the jaolicy in order to prcA'ent 
a customer of the industry from overextending his credit with the 
industry. 

3. Each of the following acts and practices is deemed to be inimi- 
cal to the best interests of the Plumbago Crucible Industry, and of 
the public, and each is, therefore, hereby declared to be, and to con- 
stitute, an unf ail- method of competition, viz : — 

4. Inducing Breach of Contract, — The willful interference by any- 
one, by any means or device whatsoever, with any existing contract 
or firm order between a seller and a purchaser of the products of 
the industiy as defined in Article II. 

5. Secret Rehates. — (a) Withholding from, or inserting in an in- 
voice for any products of the industry facts which make the invoice 
a false record wdiolly or in part of the transaction represented on 
the face thereof, and/or the payment or allowance of secret rebates, 
refunds, credits, unearned discounts, whether in the form of money 
or otherwise, or the extension to certain purchasers of service or 
priAuleges not extended to all purchasers under like terms and 
conditions. 



74 

(b) Shipment of any quantity of the products of the industry in 
excess of that for which a proper charge is made. 

(c) Unwarranted rejection allowances or shortage claims, b}' con- 
nivance or otherwise, between seller and purchaser. 

(d) Giving away any products of the industry as samples. 

6. Commercial Briber)/. — The paying of or promising to pay to 
an emploj^ee of a customer or prospective customer a commission or 
consideration of any character for the purpose of influencing or 
having influenced a sale. 

7. befamation of a Competitor. — The defamation of a competitor 
in any manner, either by falsely imputing to him dishonorable con- 
duct, inabilit}' to perform contracts, questionable credit standing, or 
a false disparagement of the grade or quality of his goods or 
otherwise. 

8. Fraud and Misrepresentation. — (a) The making, causing or 
permitting to be nuide or published any false or deceptive statement 
b}' way of advertisement or otherwise concerning grade, quality, 
character, nature, origin, manufacture, or preparation of any prod- 
ucts of the industry. 

(b) The marking or branding of any products of the industry 
in a manner which tends to mislead or deceive purchasers, prospective 
purchasers and/or consumers Avith respect to the quantity, quality, 
grade, or substance of the goods purchased. Quality of brands and 
kinds of product shall be clearly defined and expressed by the seller. 
No recognized grade, kind, or type of any products of the industry' 
shall be misbranded or misrepresented to include it in some other 
price classification. 

9. Pooled or Combination Orders. — The sale of any products of 
the industry to separate purchasers as a full-carload or other group 
lot at a sales price which does not take into consideration any added 
expense involved in such method of shipment. 

10. Terms of Sales. — The failure on the part of members of the 
industry or their agents or dealers to adhere strictl}' to published 
terms of sale as filed with the Supervisory Agency. 

11. Adherence to Standards. — Because of the high temperatures to 
which plumbago crucibles are subjected in melting furnaces, and the 
consequent danger to operatives who may be required to handle de- 
fective, or so-called " Seconds " or off-size crucibles (that is, those 
sizes of stationary and tilting types of crucibles which have been 
standardized and which do not conform in outside dimensions to the 
standards approved by the American Standards Association), the 
sale of these crucibles is condemned as a form of unfair competition ; 
provided, however, the determination of the amount of allowable 
tolerances is discretionary with the Supervisory Agency, and subject 
to the review of the Administrator. 

12. Replacements. — The replacement of any products of the in- 
dustry without charge, or the rebate of a portion of the sales price 
of any such products, when defects or poor service are claimed by the 
customer, unless the fault is traceable to the member of the industry 
and the adjustment is reported to the Supervisory Agency at the 
time it is made. 



75 

13. Test Crucihles. — Tho distribntion of ciiicibles among the trade 
without charge as "'tost cniciblcs '" for the purpose of ol)tai)iing new 
accounts or customers. 

14. Comlgnnients. — Tlie shipment of any pi'oducts of the industry 
on a consignment basis, excepting to n piopei-ly accredited agent of a 
member of the industry. 

15. Contracts. — Entering into contracts which do not represent 
the bona-fide sale of products of the industry in stated and fixed 
quantities, with a spread therefrom of not to exceed ten (10) per- 
cent, and for shipment Avithin a stated period from tlie date of 
contract of not to exceed six (6) months. 

16. Unearned Commissions. — The payment of a commisison to 
an agent or dealer who is owned or controlled in whole or in part 
by any buyer's organization, or to any fictitious agent or dealer 
created for the purpose of passing to the consumer or to the con- 
sumer's friends, all or any part of a commission. 

17. Special Crucihles. — Listing orders for special crucibles of 
standard types otherwise than on the basis of not less than the 
nearest higher member on the adopted scale of standard sizes, by 
weight comparison to the adopted scale. 

18. Terms of Sale. — Selling or offering to sell on terms more lib- 
eral than net 80 days, subject to a cash discount of one percent 
(1%) ten days. 

Article IX — General 

1. Employees shall have the right to organize and bargain collec- 
tively 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 concei'ted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

2. No employee and no one seeking employment shall be recjuired 
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. 

3. Employers shall comply with the maximum hours of labor, 
minimum rates of pa}', and other conditions of employment ap- 
proved 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 pro- 
visions of Subsection (b) of Section 10 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 specificall}^, but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions 
imi)osed by him upon his approval thereof. 

5. Such of the provisions of this Code as are not required to be 
included therein Ijy 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 contem- 
plated 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 



76 

destructive competitive practices and to effectuate the other pur- 
poses and policies of Title I of the National Industrial Recovery 
Act consistent with the provisions thereof. 

6. "Within each state this Code shall not supersede any laws of 
such state imposing more stringent requirements on employers regu- 
lating the age of employees, wages, hours of work, or health, fire, or 
general working conditions than under this Code. 

Article X — Segiieoation of Ixdustry 

If any em]>loyer of labor also emploj^s 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 this Industry. 

Article XI — Prevention of 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 or oppress small enterprises, or 

(4) Discriminate against small enterprises. 

Article XII — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if price,s of goods and 
services increase as rajoidly as wages, it is recognized that price in- 
creases should be delayed and that, when made, the same should, so 
far as reasonably po.ssible, be limited to actual increases in the 
seller's costs. 

Article XIII — Term and Termination or Code 

After its effective date this Code shall continue in effect, subject 
to amendment or modification as herein provided until terminated 
by law. 

Approved Code No. 63. 
Registry No. 1040A/01. 

o 



Approved Code No. 64 
CODE OF FAIR COMPETITION 

FOR THE 

DRESS MANUFACTURING INDUSTRY 

As Approved on October 31, 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 Dress Manufacturings Industry, and 
hearinos having been held thereon and the Administrator havino: 
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 hereby adopt and approve the report, recommenda- 
tions and findings 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. Pending the prompt holding of such further hearing on such 
notice as the Administrator in his discretion may fix, further orders 
in this regard, and the final determination of the issues raised con- 
cerning the application of the wage scale provided in this code for 
the Avestern area (as defined in the code), the application of the wage 
scale provided in section 6, article IV of said code for said western 
area, except as to the metropolitan areas, as defined in the 1930 
census, of the cities of Chicago and Cleveland, shall be and the 
same is hereby stayed until said determination, and 

2. Upon the further conditions that, and it is hereby ordered that 
during the period of such stay, section 7, of article IV shall be con- 

29932 296-166—34 (77) 



78 

siclered to include within its terms all employees included in this 
stay, irrespective of craft, in said western area, and 

3. The application of this code is stayed as to the manufacture 
of dresses in chief content of cotton which in the custom and prac- 
tice of the trade are merchandised in what is known in the trade as 
the house dress or wash dress departments of recognized department 
stores and other retailers of women's garments, and which cotton 
dresses, under the established custom and practice of the trade, are 
customarily bought from the manufacturer by or sold by the manu- 
facturer to the buyer of house or wash dresses, pending the hold- 
ing of such hearing on such notice as the Administrator in his 
discretion may fix, further orders in this regard and a final deter- 
mination of the issues raised concerning the application of this code 
to such manufacturer. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

October 31, 1933. 



October 31, 1933. 
The President, 

The White House. 

Sir : This Code is a conspicuous example of the effectiveness of the 
National Industrial RecoveiT Act in rehabilitating a disorganized 
and demoralized industry. So pressing was the need for some such 
helpful influence that the Act and the forces released by the Act met 
with no great opposition. The Code herewith presented, while em- 
bodying some compromise, represents a remarkable reconciliation of 
interests widely divergent and hitherto in bitter opposition. 

The outstanding features of this Code are : 

1. Establishment of a thirty-five-hour week. 

2. Establishment of minimum wage scales which increase the pur- 
chasing power not only of the unskilled but also the skilled labor 
throughout the industry'. They are satisfactory to organized labor 
and will make impossible the operations of exploiters of labor and 
" SAveat shops." 

3. Fixing responsibility for standards of industrial relations upon 
the outside manufacturer or '' jobber '\ which hitherto has been most 
inadequately^ and unjustly loaded upon the feeble and incompetent 
shoulders of the contractor. 

4. Elimination of the ancient abuses of child labor and home work. 

5. Establishment of a Code Authority on which are represented all 
important interests of the industry. Equipped with administrative 
power, reinforced by authority to issue or withhold an N.R.A. label, 
it maj' be expected to develop into a powerful agency of self-govern- 
ment in the industry, the lack of which has kept the dress industry 
in turmoil and confusion for decades. All its actions, however, are 
subject to the approval of the Administrator. 

SUMMARY or THE CODE 

The Code may be summarized as follows : 

Article I sets forth the purposes of the Code. 

Article II establishes certain necessary definitions. 

Article III provides that no manufacturing employee shall work 
in excess of thirty-five hours per week and that no nonmanufactur- 
ing employee shall work in excess of forty hours per week. Overtime 
may be permitted at the discretion of the Administrator, but for 
not more than six weeks in any one season. 

Article IV enumerates the wage scales which shall be paid to 
workers in the various crafts. These wage scales vary from fourteen 
dollars per week to forty-five dollars per week. Because of variations 
in working condition and the efficiency of workers, separate wage 
classifications are made as between lower-priced and higher-priced 
garments, between piece rates and week rates, and between the city 
of New York, the Eastern metropolitan area, the Eastern area, and 

(79) 



80 

the Western area. This article also contains the substance of para- 
graph seven of the President's Keemploynient A*rreement. In ackli- 
tion, provision is made for the employment of handicapped persons 
at rates below the basic minimum established in this article. This 
provision is inserted for humanitarian reasons, but it is so hed^^ed 
about with restrictions that abuse will be difficult, and it is hoped 
impossible. 

Article V abolishes child labor (minors under sixteen) as well as 
home work, and provides that manufacturing shall be carried on 
under sanitary conditions. In this article are included the manda- 
tor}^ labor provisions. 

Article VI establishes a Code Authority representative of all 
the organized interests in the industry including organized labor. 
This Authority is clothed with ample powers to administer and 
enforce the Code, subject always to the approval of the Adminis- 
trator. 

Article VII regulates the relationships between outside manu- 
facturers and contractors in respect to (1) the responsibility of 
manufacturers for the payment to contractors of amounts sufficient 
to cover the wages provided for by this Code and in addition a rea- 
sonable amount for overhead expense; and, (2), the selection and 
retention of contractors by the manufacturers to protect the con- 
tractor and his employees against unjust discrimination in the 
distribution of work. 

Article VIII provides than an N.R.A. label be attached to every 
garment manufactured under this Code. This label will bear a 
registration number specifically assigned to each employer in the 
industry and will remain attached to each garment when placed on 
sale by the retail distributor. The Dress Code Authority is given 
sole authority, with the approval of the Administrator, to administer 
the issuance of these labels. This provision will facilitate the ad- 
ministration of the code, and in particular will provide sufficient 
revenue to finance the activities of the Code Authority. 

Article IX deals with trade practices, providing uniformity in the 
relations between buyers and sellers, in such matters as: (1) return 
of merchandise, (2) uniform order blanks containing the terms of 
the contract, (3) protection of original styles, (4) discounts, (5) 
selling on consignment or at retail, and (6) secret rebates, etc. 

Article X contains the mandatory clause protecting small enter- 
prises against monopolistic practices. 

Articles XI and XII provide for modifications and amendments 
to this Code. 

Article XIII names the effective date of this Code. 

PROBLEMS or THE INDUSTRY 

The Dress Industry of the United States as it is now constituted 
is one of the youngest industries of the country. It is only about 
thirty years old; but from very small beginnings it was able to 
reach a w^iolesale turnover of about eight hundred million dollars 
in 1929. The present volume, however, has decreased to about five 
hundred million dollars. The industry is concerned with the manu- 
facture and distribution of women's and children's dresses, ensem- 
bles, etc. It does not include, however, what is commonly known as 



81 

house dresses or cotton wash (hvsses, which types of apparel fall 
under the jurisdiction of the Cotton (Jarinent Code. Particular care 
has been taken that there be as little overlapping as possible between 
these two codes. 

New York City is the dress nianufacturino- center of the country. 
In 11)31, 6G.4 percent of the total number of nianufactni-in<j: estab- 
lishments were located there, and the annual sales Nolunie of these 
establishments represented 78.6 percent of the total business trans- 
acted. Chicaojo, Philadelphia, Boston, and Los Angeles are next in 
importance. Other localities are St. Louis, San Francisco, Cleveland, 
and Baltimore. The geographical distribution of the industry may 
be summarized by the following table, prepared from data supplied 
by the National Credit Office. 



City 


Number 
of con- 
cerns 


Sales 


Per cent 

of total 

sales 




1,383 
180 
109 
95 
79 
22 
40 
10 
18 
114 


$633, 183, 000. 00 

44, 399, 000. 00 

30, 466, 000. 00 

22, 184, 000. 00 

20,251,000.00 

9, 136, 000. 00 

8, 963, 000. 00 

2, 875, 000. 00 

2, 529, 000. 00 

31, 197, 000. 00 


78.6 




0. 




3.8 




2.8 




2.0 




1.1 




1.1 




.4 




.3 




3.9 






Total -- 


2,080 


805, 183, 000. 00 


100.0 







78.6% of the total sales of dresses throughout the country were 
manufactured and sold in New York City, leaving 21.4% for dis- 
tribution by the rest of the country. The reasons given for the 
predominance of New York City over the rest of the country were 
as follows: New York City is recognized as the leading style center; 
there is an adequate supply of skilled labor : transportation facilities 
are of the best; adequate financing is available; the fabric market is 
immediately adjacent. 

Obviously, this code has given due recognition to the conditions 
prevailing in the city of New York and its environs, particularly with 
reference to the jobber-contractor system of production. 

In New York, the dress industry is composed of four principal 
elements : Jobbers or wholesalers, inside manufacturers, contractors, 
and submanufacturers. Inside manufacturers create their own 
styles, manufacture on their own premises, use their own material, 
and sell, largely, directly to retailers. Many of these inside manu- 
facturers likewise make use of contractors, particularly at the height 
of the season. 

Jobbers and wholesalers concern themselves chiefly with the prob- 
lems of style and distribution, and the purchase of piece-goods, ma- 
terials, trimmings, etc. Submanufacturers and contractors manufac- 
lure the garments in accordance with the stjdes decided u])on liy the 
jobber. In the low-end price range most jobbers employ cutters on 
their own premises to cut the work. Such partially finished gar- 
ments are then let out to contractors, who complete the operations. 

The term " contractors " is generally used to include submanufac- 
turers; generally speaking, however, the contractor merely com- 



82 

pletes the manufacture of garments Avhich have ah'eady been cut on 
the premises of a jobber or a manufacturer. The submanufacturer 
produces directly for a jobber or a manufacturer from materials and 
trimmings furnished by the latter. 

It has been estimated that contractors and submanufacturers pro- 
duce about eighty percent of the dresses manufactured in Xew 
York City. There are approximately 1,800 contractors and sub- 
manufacturers located in the New York metropolitan area. 

Xot many years ago virtually all dress contractors were located 
within the confines of the City of Greater New York; in recent years, 
however, in an eifort to find a cheaper labor market, factories have 
been established in adjoining districts, particularly in New Jersey, 
Connecticut, and Pennsylvania. AVorkers in these areas have been 
unduly exploited. Fifty-four hours per week or even more have 
been by no means uncommon, and wages have been pitifully low. 
These out-of-town contractors are engaged largely in the production 
of the cheaper lines of dresses, that is, dresses which Avholesale at 
$3.75 and less. 

The development of the contracting system in the dress industry 
is easily explained. For one thing, dresses are created in a great 
variety of styles. A comparatively small number of each style is 
produced and sold. Experience has proven that efficient production 
can be obtained only when these dresses are produced in compara- 
tively small units of shop production. Each operator produces vir- 
tualh' a complete dress. Unlike other industries, there is no possi- 
bility of splitting up machine or hand operations and introducing 
standardization. The perfection and efficiency of the workers depend 
not so much on the management of the plant as it does on the indi- 
vidual skill and ability of the particular worker. 

The personal element is extremely important. The Contractor, 
having a smaller group to supervise, knows the particular abilities 
and skill of each of his workers. He is a specialist in the manufac- 
ture of ladies' garments; the jobber likewise is a specialist in the 
distribution and sale of the manufactured garments. Each serves 
more efficiently in his specialized field. 

Another reason for the development of the contracting system in 
the dress industry is the insurance it gives against sudden stoppage 
or curtailment of the production because of strikes or other labor 
troubles. Under the jobber-contractor system, if a labor dispute 
develops among the Avorkers in any particular contractor's factory, 
it usually does not affect the output of the other contractor Avho 
supplies the particular jobber. 

During the past fcAv years, competition among the various factors 
has been so keen and the prices paid to the contractors have been so 
loAv, that in many instances prices paid by the jobber Avere hardly 
sufficient to pay the actual labor costs, not to mention the overhead 
expenses of the contractor, or payment to the contractor for his 
services. The result has been that the contractor's savings have been 
Aviped out. His plants are heavily mortgaged, and he has incurred 
debts in all aA^ailable sources. Factory remoA^als haA'e become almost 
institutional. 

The problem of jobber-contractor relations has received special 
consideration in the formation of this Code. Indeed, Avithout the 



83 

help of the National Kecovery Adininistration, it is difficult to 
imajiine how these relationships, so unjust and unsatisfactory, could 
be placed on a decent basis. 

This result was not accomplished, however, without numerous and 
prolonged conferences both in Washington and New York. The pro- 
visions of Article VII represent a compromise in which both parties 
uiade concessions from their extreme positions. 

The contractors had convinced themselves that the Code would 
not give them the advantages they desired unless the comf)etition 
l)etween themselves was eliminated or mitigated. To attain this 
end they insisted that the manufacturers be strictly limited as to the 
luniiber of contractors they might employ. 

While admitting the evils of unrestrained competition among the 
contractors, the manufacturers believed that the remedy suggested. 
i.e., limitation of contractors, would create new evils. If the manu- 
facturer were not free to allocate his work to the contractor best 
fitted to perform it, as to quality, price, and delivery, he would be 
intolerably handicapped in meeting marliet requirements. 

It seemed obvious that in this matter, fraught with dangers to the 
success of the Code, great caution was advisable. Provisions were 
suggested by which substantial steps in the direction of controlled 
competition could be taken and further steps provided for as ex- 
pei'ience demonstrated their practicability. For many weeks, these 
l)roiJOsals were refused but finally the extreme demands were 
abandoned and the matter settled by the clauses in Article VII, 
now a part of the Code. 

LABOR 

Prior to the restriction of immigration, additional workers were 
reci'uited into the industry from Russia and Italy. Most, if not all, 
of these workers had plied their respective crafts in their own 
countries, and had already a fairly high degree of skill and 
experience. 

In late years, however, the racial distribution of workers has 
changed quite markedly. There have come into the industry Cubans, 
Portuguese. Spanish, and Greek girls and women. This new type 
of worker is slow to learn and requires a longer period of time to 
attain a reasonable degree of efficiency. Their earnings today at 
piece rate and week rate range from six to sixteen dollars per week 
outside of New York City, and from ten to twenty dollars per week 
in New York City. 

The economic depression has also influenced the type of w^orker 
engaged in the industry. During the last three years there has been 
a great influx of temporary workers, particularly in the areas out- 
side of the City of New York. In New York sixty percent of the 
workers are female, whereas outside New York ninety-five percent 
are female. Many of these are married women. Many have gravi- 
tated to the industry as a result of the economic depression ; they have 
l)een compelled to become the main supports of their families. A 
good proportion of such workers will return to their homes as soon 
as their husbands or children are able to earn a fair livelihood. 

One more feature peculiar to the labor sup]:)lv of this industry 
must be realized. As noted above, a substantial nuijority of the 

29932 296-166 34 2 



84 

workers are women. The labor turnover, consequently, is high 
because of the tendency of women to discontinue industrial pursuits 
upon marriage when economic conditions permit. 

For all of these reasons, it is desirable that some provision be made 
whereby the industry may, without unduly burdening itself, maintain 
an adequate supply of trained workers. 

At the same time, because of the large volume of unemployment in 
the industry, the unrestricted employment of apprentices would be 
highly undesirable. The Code Authority has been charged wdth the 
responsibility of studying the problem and of recommending to the 
Administrator appropriate regulations for the control of appren- 
ticeship employment. 

The Dress Strike and Its Settlement 

About a week prior to the date of hearing, a strike occurred in 
New York wdiich became general throughout the industry in that 
city. Mr. Grover Whalen, representative of the National Labor 
Board, took charge and was able to effect a settlement by collective 
agreements among all parties before the hearing date. In view^ of 
the difficulties of the situation this was a remarkable achievement. 
The lasting service of Mr. Whalen Avas acclaimed by all the leaders 
in the industry. 

Strikes in the Chicago, Cleveland, St. Louis, and other markets 
were settled in a similar manner and collective agreements with the 
union entered into. Mr. Max Meyer, of New York, Industrial 
Adviser at the hearing, rendered important service in these events. 

The i)rincipal organizations participating in the public hearing 
and in subsequent conferences, representing all the markets of any 
.size, were : 

A. The National Dress Manufacturers Association, whose mem- 
bership consists of about six hundred firms. This Association com- 
prises : 

1. Jobbers whose entire product is made by contractors to whom 
the jobber furnishes the materials for the making of his garments 
from samples furnished by the contractor. 

2. Jobbers w^ho style their own merchandise and for w-hom the 
contractor makes up the dresses. 

8. Jobbers who make their samples and also maintain cutting 
departments, furnishing cut bundles to contractors for completion. 

4. Employers Avho maintain inside factories for part of their pi'od- 
uct and use contractors for another part of their output. 

B. The Affiliated Dress Manufacturers, Inc., whose membership of 
one liundred twenty-five firms comprise the manufacturers of the 
finest garments. Their work is carried on largely on the premises, 
although part of their production is nuide in contractors' shops. 

C. Tlie United Association of Dress Manufacturers, Inc., which 
comprises a majority of the dress contractors working for the above- 
menticmed jobbers and manufacturers. This organization has a large 
membership, largely recruited since the settlement of the strike. 

D. The out-of-town associations consist of the Western Group, 
taking in the cities of Chicago, Cleveland, Indianapolis, San Fran- 



85 

cisco, and Los Angeles. Another association represents the Boston 
market, and still another Philadelphia. 

Labor was represented by the International Ladies Garment 
Workers Union and also by a representative of the Needle Trades 
Industrial Workers Union of New York City, claiming a member- 
ship of fifteen thousand workers. 

Tlie hearings developed substantial agreement on most questions, 
particularly on the question of hours. Exceptions were voiced by 
representatives of the Western (rroup regarding differentials agreed 
iil)on by the New York manufacturers and unions for the pnxhic- 
tion of dresses selling at $3.75 and under. The Western Grouj) 
dissented from the differential of ten })ercent proposed in their favor 
for all operations, demanding for their group a differential varying 
from fifteen to twenty-five percent. Within the Eastern Area re- 
quests were made for differentials greater than ten percent but 
could not be granted because of competitive conditions. 

LABELS 

The advisability for an N.I.R.A. label has already been recognized 
in the code ado})ted for the coat and suit industry. The arguments 
advanced at the hearings on the Coat and Suit Code apply with 
even greater force to the Dress Code. 

The use of the N.I.R.A. label will serve to identify the concerns 
who have complied with the Code. It will be a most effective means 
of certifying both the factory or plants as well as its output. Under 
proper safeguards for the issuance of the label, the identity and 
location of each factory can be readily ascertained. Effective super- 
vision of the physical surroundings of the factory and the compliance 
with the provisions of the code can thus be more readily instituted 
by the Code Authority, or any other agency delegated for the task. 

REEMPLOYMENT 

Between 1929 and 1931, the average number of workers employed 
in the industry decreased from 88,223 to 79,724. The estimated total 
number of workers employed in 1932 was 66,344. From these figures, 
it appears that in 1932 in excess of 21,000 workers were unemployed. 
Taking into account the seasonality of the industry, however, the 
excess labor supply in that year was somewhat less than 20,000. 

The full-time week in this industry consisted, so far as may be de- 
termined from the meagre statistical information available, of about 
forty-eight hours. By the introduction of the thirty-five hour week, 
therefore, employment during busy seasons should increase about 
thirty-seven percent. It is hoped also that the restricted week will 
materially reduce the seasonal fluctuations in employment. 

The average annual wage declined from $1,344.00 in 1929 to 
$880.00 in 1932. Unfortunately it is impossible to estimate the prob- 
able increase which the wage scales provided in the Code will bring 
about. It is conceded by all concerned, however, that the increase 
will be considerable. It is possible, on the other hand, to estimate the 
increase in pay roll which the thirty-five hour week will necessitate. 
The reemployment of thirty-seven percent more workers will add to 
tlie annual pay roll about twenty-one million dollars. 



86 

With respect to the wage and hour provisions of the Code, there- 
fore, it may be expected that the purposes of the National Industrial 
Recovery Act will be effectuated. 

The Deputy Administrator finds 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 trade association submitting said Code imposes no in- 
equitable restrictions on admission to membership therein and is 
truly representative of the Dress Manufacturing Industry ; and that 

(c) The Code is not designed to promote monopolies or to limit 
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. 

I recommend that the Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOE THE 

DRESS MANUFACTURING 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 and upon approval by the President shall be the 
•standard of fair competition for such Industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The term " Dress Manufacturing Industry " as used herein 
includes the manufacture and sale by the manufacturer (as defined 
in paragraphs 6 and 7 of this Article) in whole or in part, in the 
United States on the North American Continent, of women's, misses', 
■and juniors' dresses, dressmakers' ensembles, and waists when used 
with ensembles, whether such manufacture and distribution shall be 
b}' inside or outside manufacturers, contractors, or otherwise; pro- 
vided that nothing in this definition shall include the manufacture 
of inexpensive dresses made of material of which cotton is the chief 
content and generally known in the trade as a house dress or house 
dresses. 

Making of garments in what is known as the " custom trade ", 
to individual measure on individual order of the wearer if (1) such 
garments are sold on the premises of the maker, or (2) the garments 
are made by employers employing less than 10 employees is not a 
part of this Industry. 

2. The term " lower-priced garments " includes those garments 
regularly sold in wholesale quantities for $3.75 each or less. 

3. The term " higher-priced garments " includes all garments 
manufactured in this Industry except those included in the definition 
of lower-priced garments. 

The term " employee " or " worker " as used herein includes any- 
one engaged in the Industry in any capacity receiving compensa- 
tion for his services, irrespective of the nature or method of payment 
of such compensation. 

5. The term " employer " as used herein includes all those by whom 
any such employee is compensated or employed. 

6. The term " outside manufacturer " or " jobber ", which are 
sj^nonymously used in this Code, include all those for whom and/or 
under whose direction or orders garments in the Dress Manufac- 
turing Industry are manufactured in whole or in part by contractors 
and/or other manufacturers, and who act as wholesale distributors 
of such garments. 

(87) 



88 

7. The term " inside manufacturer " includes all those who manu- 
facture garments in the Dress Manufacturing Industry out of their 
OAYU material in a factory maintained and operated by them. 

8. The term " contractor " includes all those who manufacture 
garments in the Dress Manufacturing Industry from materials pro- 
vided for them by a manufacturer, jobber, or others. 

9. For the purposes of this Code, four (4) areas are hereby 
established : 

(a) "City of New York" as used herein means and includes the 
five boroughs of New York City. 

(b) " Eastern Metropolitan Area " as used herein, means and in- 
cludes the metropolitan areas as defined by the 1930 Census of 
Philadelphia, Boston, and Baltimore. 

(c) " Eastern Area " as used herein means and includes the New 
England States, New York, Pennsylvania, New Jersey, Delaware,^ 
and Maryland, exclusive of the City of New York and Eastern 
Metropolitan Area as defined above. 

(d) "Western Area'' as used herein means and includes all por- 
tions of the United States on the North American Continent not 
included in the above three areas. 

10. The terms *' President '■, "Act '", and "Administrator " as used 
herein shall mean, respectively, the President of the United States, 
the National Industrial Recovery Act, and the Administrator of 
Title I of said Act. 

Article III — Hours 

1. No employee, employer, or individual operating on his own ac- 
count shall work or be permitted to work in the mechanical processes 
of manufacture in excess of 35 hours, nor more than 5 days, in any 
one week. 

2. All other employees shall not work or be permitted to work 
in excess of 40 hours in any one week, except foremen and executives 
receiving $35 or more per week, and except salesmen, designers, and 
watchmen. Watchmen shall not work or be permitted to work more 
than six days in any one week. 

3. Exceptions from the two last preceding paragraphs may be 
allowed by the Code Authority for a period of not more than six 
weeks in any one season ; provided that the employer shall be re- 
quired to pay one and one half times the normal wage for such 
overtime work. 

4. Employers shall not operate or be permitted to operate more 
than one shift in any one day. 

Article IV — Wages 

1. P^mployees engaged in the mechanical processes of manufacture 
of higher-priced garments in the City of New York shall be paid not 
less than the following minimum wages : 

Cutters $45 per week of 35 hours. 

Sample makers 30 per week of 35 hours. 

Drapers 27 per week of 35 hours. 

Examiners 21 per week of 35 hours. 

Cleaners & Pinkers 15 per week of 35 hours. 



89 

Operators 90(* per liour. 

Pressers $1 per hour. 

Finishers 650 per hour. 

2. Employees engaged in the mechanical j^rocesses of manufacture 
of lower-priced garments in the City of New York shall be paid not 
less than the following minimum wages : 

Cutters $45 per week of :{5 hours. 

Machine Cutters 37 per week of :i5 hours. 

iStretrhers 27 per week of .'55 hours. 

Sample Makers 30 per week of 35 hours. 

Examiners 20 per week of .35 hours. 

Ck'aners & Pinkers 15 per week of 35 hours. 

Op^^rators 75<^ per hour. 

Pressers 850 per hour. 

Finishers 57<)!' per hour. 

3. h\isfer)i MetropoVdan Area. — Workers or employees in the 
Eastern Metropolitan Area engaged in the mechanical processes of 
manufacture of higher-priced garments and/or lower-priced gar- 
ments, respectively, shall be paid at least 90% of the minimum wages 
herein set forth for the City of New York for the various crafts in 
the two classifications of garments, respectively; provided, however, 
that cleaners and pinkers shall not receive less than $15 per week. 

4. Eatiteni Area. — Employees engaged in the mechanical processes 
of manufacture of higher-priced garments in the Eastern Area shall 
be paid not less than 90% of the wages herein provided for said 
garments in the City of New York for the various crafts; provided, 
however, that cleaners and pinkers shall not receive less than $15 
per week. 

5. Employees engaged in the mechanical processes of manufacture 
of lower-priced garments in the Eastern Area shall be paid not less 
than the following minimum wages : 

Cutters $45 per w'eek of 35 hours. 

Machine cutters 37 per week of 35 hours. 

Stretchers 27 per week of 35 hours. 

Sample makers 30 per week of 35 hours. 

Examiners 17 per week of 35 hours. 

Cleaners and pinkers 15 per week of 35 hours. 

Operators 630 per hour. 

Pressers 700 per hour. 

Finishers 500 per hour. 

6. Westerji Area. — Emploj^ees in the Western Area engaged in 
the mechanical processes of manufacture of higher-priced garments 
and/or lower-priced garments, respectively, shall be paid not less 
than 85% of the minimum wages established herein for the City 
of New York for the various crafts in the two classifications of 
garments, respectively ; provided, however, that cleaners and pinkers 
shall receive not less than $14 per week. 

The Pacific Coast or other markets in the Western Area may 
})etition the Administrator for a change in the wage diiferentinls 
allowed herein. The Administrator, after such hearings as he may 
deem proper, after taking into consideration the competitive ad van - 
tables and/or disadvantages of such markets, may modify the 
aforesaid differentials provided in this Section. 

7. All other employees in any and all of such areas shall be paid 
not less than the rate of $14 per week for the maximum hourly work 
week as herein established. 



90 

8. The above wage scales provide a guaranteed minimum regard- 
less of whether the employee is compensated on a time rate, piece 
rate, or other basis. Cutters, sample makers, drapers, examiners, 
cleaners and pinkers, machine cutters, and stretchers shall be 
emplo3^ed and paid on a week-work basis. 

9. No employee shall receive a lesser rate than is required to 
provide the same earnings for the hourly work week herein estab- 
lished as was received for that class of work for the longer work 
week prevailing immediately prior to the date of approval of this 
Code; provided, however, that this clause shall not be interpreted 
to require an increase in rate to any employee in excess of 20%. 
Nothing herein contained shall relieve any employer from paying- 
the other minimum wage rates established in this code. 

10. Exceptions from the above minimum-wage rates are granted 
for apprentices until the Code Authority shall make further report 
in those cases now existing in which apprentice rates have been 
established after legitimate collective bargaining. 

11. To insure employment to employees who are physically or 
mentally handicapped or who are otherwise subnormal in their 
production, such employees may be exempted by the Code Authority 
on such terms as the Code Authority may specify from the wage 
provisions of this Code, subject to review by the Administrator; 
provided that such employees shall not exceed in number 10% of 
the total number of workers employed by any one employer. 

Article V — General Labor Provisions 

1. No person under the age of 16 shall be employed in the Dress 
Manufacturing Industry. 

2. Employees shall have the right to organize and bargain col- 
lectively through representatives of tlieir 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. 

3. 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 

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

5. Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements regulating the age 
of employees, wages, hours of work, or health, fire, or general work- 
ing conditions than under this Code. 

6. Employers shall not reclassify employees so as to defeat the 
purposes of the Act. 

7. Each employer shall post in conspicuous places full copies of the 
applicable labor provisions of this Code. 

8. No work shall be carried on in homes or tenement houses, base- 
ments, or in unsanitary buildings, or in buildings imsafe on "iccount 
of fire or danfferous to health. 



91 

Akticlk VI CoDK Al rHOIMFY 

1. 'J\) further effectuate the policies of the Act, a Code Authority 
is hereby set up to cooperate with the Administrator in the admin- 
istration of this Code. 

(a) The Code Authority shall consist of sixteen individuals, or 
such other number as may be a])proved from time to time by the 
Administrator, to be selected as hei'einafter set forth. The A<hiiin- 
istrator, in his discretion, may ajipoint not more than 8 additional 
members to represent tlie Administrator as he may desire. 

(b) The above members of the Code Authority shall be selected by 
a fair method of election to be approved by the Administrator, by 
each association, group, or geographic subdivision of the Industry 
hereinafter designated, and each such association, group, or geo- 
graphic subdivision of the Industry shall elect the following number 
of individuals to said Code Autliority, respectively : 

National Wholesale Dress Manufacturers Asso- 
ciation '> meuibers. 

Affiliated Dress Manufacturers Association 3 members. 

United Association of Dress Manufacturers, In- 
corporated 3 members. 

Eastern Metropolitan Area and Eastern Area 1 member to represent dress 

manufacturers, 1 member 
to represent contractors. 

Western Area 2 members. 

International Ladies' Garment Workers' Union 3 members. 

(c) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall : 
(1) Impose no inequitable restrictions on membership and (2) sub- 
mit to the Administrator true copies of its Articles of Association, 
Bylaws, Regulations, and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem necessary to 
effectuate the purposes of the Act. 

(d) In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with the 
provisions of the Act, the x^dministrator may provide such hearings 
as he may deem proper; and thereafter if he shall find that the Code 
Authority is not trul}' representative or does not in other respects 
comply with the provisions of the Act may require an appropriate 
modification in the method of selection of the Code Authority. 

(e) Should a vacancy occur on the Code Authority, it shall be 
filled in accordance herewith by the organization, group, or geo- 
graphic subdivision formerly represented by the place on the Code 
Authority in which the vacancy occurs. 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act. The Administrator on review 
shall have the right to veto or modify any action taken by the Code 
Authority : 

(a) The Code Authority shall adopt bylaws and shall furnish to 
the Administrator true and correct copies of the bylaws and all 
amendments thereto immediately upon their adoption, together with 
true and correct copies of all rules and regulations which may be 
adopted by the Code Authority and true and correct minutes of all 
of its meetings, all certified by the Secretary of the Code Authority. 



92 

(b) To elect officers and to appoint agents and employees and to 
assign to them such duties as it may consider advisable, and to pro- 
vide rules for the selection of members of the Code Authority by the 
Industry. The Code Authority shall keep the Administrator advised 
of the personnel of its administrative employees. 

(c) To administer and enforce the provisions of this Code. 

(d) To obtain from time to time from employers in the Industry 
who shall furnish reports in respect to wages, hours of labor, condi- 
tions of employment, number of employees, and other matters perti- 
nent to the purposes of this Code as the Code Authority may pre- 
scribe and to submit periodical reports to the Administrator in such 
form and at such times as he may require, in order that the Presi- 
dent may be kept informed with respect to the observance thereof, 
to furnish governmental agencies with such statistical and other in- 
formation as the xldministrator may deem necessary for the purpose 
recited in Section 3 (a) of the Act, 

Except where alleged violations are being heard, all individual re- 
ports furnished pursuant hereto shall be treated as confidential in- 
formation by the administrative stall' of the Code Authority, and 
shall not otherwise be revealed to competitors of those furnishing the 
information except as part of summarized reports. 

(e) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein and to pay such trade associations and agencies the cost 
thereof, provided that nothing herein shall relieve the Code Au- 
thority of its duties or responsibilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

(f ) To coordinate the administration of tliis Code with such other 
Codes, if any, as may be related to the Dress Manufacturing Indus- 
try or any subdivision thereof, with a view to promoting joint and 
harmonious action upon matters of common interest. 

(g) To initiate, consider, and submit to the Administrator 
proposals for amendments to or modifications of this Code. 

(h) To provide ways and means for financing the operation of 
said Code Authority and to determine an equitable method of appor- 
tioning in the Industry the Cost of administering this Code. Money 
raised in any manner shall not exceed in amount such reasonable 
cost. 

(i) The Code Authority shall provide rules and regulations by 
which the distinction between " higher-priced garments " as herein 
defined, and " lower-priced garments '" shall be determined. In so 
doing, the Code Authority shall be guided by the wholesale prices 
prevailing on August 15, 198;}, or thereabouts, as representing the 
intention of the fiamers of this Code. 

(j) The Code Authority u})on the adoption of this Code shall 
immediately make a thorough study for the purpose of introducing 
api)rentice systems into the Industry, taking into consideration the 
school and other requirements of the respective states. On the basis 
of this study, the Code Authority shall make recommendations 
before January 1, 1934, to the Administrator for a provision for 
apprentice systems suggested as an amendment to this Code. 



93 

(k) The Code Authority shall immediately make investigation 
into the problem of style piracy, and make recommendations in 
connection therewith to the Administrator within sixty days after 
the effective date of this Code. 

AiiTicLE VII — Relatioxs Betwekn Manufactureks axd 

CONTH ACTORS 

1. (a) All manufacturers and/or jobbers who cause their gar- 
ments to be made by contractors shall adhere to the payment of 
rates for such production in an amount sufficient to enable the con- 
tractor to pay the employees the wages and earnings provided in this 
Code and in addition a reasonable })ayment to the contractors to 
cover overhead. 

Where a contractor establishes that there has been an underpay- 
ment made b}' any manufacturer and/or jobber under the provi- 
sions of this Article, such manufacturer and/or jobber shall be 
liable for such underpayment, provided that claim for such under- 
jDayment shall have been made within two weeks of the next fol- 
lowing customary accounting settlement period. When any such 
claim for underpayment has been made by a contractor, such con- 
tractor shall open his books of account bearing on such claim for 
inspection. This clause shall not be construed as diminishing the 
rights of any employee to any claim for underpayment against the 
parties who caused such underpayment. 

(b) Manufacturers and jobbers who cause their garments to be 
made by contractors shall immediately designate the number of 
contractors to meet their business requirements. Within one week of 
the effective date of this Code the manufacturers and jobbers shall 
register the contractors so designated with the Code Authority, and 
thereafter register any and all subsequent changes. 

(c) This does not abridge the right of the manufacturers or job- 
bers to add to, subtract from, or change their contractors, provided 
that such additions, subtractions, or changes conform to the business 
requirements of the manufacturers or jobbers, and is not intended 
to discriminate against the contractors or workers; and provided 
further, that such clianges, or additions, are not made for the pur- 
pose of evading the established wage, scale provided for in this Code 
plus the contractor's overhead. 

(d) The Code Authority, subject to veto by the Administrator, 
shall have the power to prevent a practice on the part of a jobber 
or manufacturer of unjustly or unreasonably discriminating in the 
distribution of work as between contractors which might unfairly 
deprive groups of workers of an opportunity to work. 

(e) In the distribution of work, manufacturers and jobbers shall 
have the right to employ contractors on the basis of type and the 
quality of the work performed; on a competitive price basis, pro- 
vided the price is sufficient to pay the minimum wages provided for 
in this Code and a reasonable overhead to the contractor; and ac- 
cording to experience in obtaining deliveries on schedule; but this 
shall not be exercised as a device to evade the purpose of this Article. 



94 

(f ) After further study the Code Authority, with the approval of 
the Administrator, shall make rules and regulations to further effec- 
tuate the purpose of this Article as stated herein. 

2. It shall be unfair competition for any manufacturer and/or 
jobber to employ a contractor, or for any contractor to accept em- 
ployment from a manufacturer and/or jobber except by use of the 
uniform order blank to be promulgated by the Code Authority after 
being approved by the Aclministrator. 

Article VIII — Labels 

All garments manufactured or distributed subject to the provisions 
of this Code shall bear an N.R.A. label to symbolize to purchasers 
of said garments the conditions under which they were manufac- 
tured. Under the powers vested in him by Executive Order of Octo- 
ber 14, 1933, and under grant of the necessary authority by the 
Administrator, the Code Authority shall have the exclusive right in 
this Industry to issue and furnish said labels to the members thereof. 
Each label shall bear a registration number especially assigned to 
each employer by the Code Authority and remain attached to such 
garment when sold to the retail distributor. Any and all employers 
may apply to the Code Authority for a permit to use such N.R.A. 
label, which permit to use the label shall be granted to them, but 
only if and so long as they comply with this Code. The Code 
Authority, subject to approval by the Administrator, shall establish 
rules and regulations and appropriate machinery for the issuance of 
labels and the inspection, examination and supervision of the prac- 
tices of employers using such labels in observing the provisions of 
this Code for the purpose of ascertaining the right of said employer 
to the continued use of said labels ; of protecting purchasers in rely- 
ing on said labels ; of insuring to each individual employer that the 
symbolism of said label will be maintained by virtue of compliance 
with the practices herein contained by all other employers using 
said label. 

The charge made for such labels by the Code Authority shall at 
all times be subject to supervision and orders of the Administrator 
and shall be not more than an amount necessary to cover the actual 
reasonable cost thereof, including actual printing, distribution, and 
administration and supervision of the use thereof as hereinabove set 
forth. 

Article IX — Trade Practices 

The following practices constitute unfair methods of competition 
for members of the Industry and are prohibited : 

1. No returned merchandise may be accepted for credit except 
for defects in manufacture, delay in delivery, or errors in shipment. 
Further recommendations on this subject may be made by the Code 
Authority. 

2. The Code Authority shall immediately formulate a uniform 
order blank to be used in the sale of products. After such notice and 
such hearing as the Administrator may provide, he may approve 
said uniform order blank after which it will be unfair trade practice 
for anyone engaged in the Industry to sell to any purchaser except 
bv the use of said uniform order blank. 



95 

3. It shall be iinfaii- trade praetice to sell merchandise at a cash 
discount in excess of S^/c ten days E.O.M. (end of month) except 
that merchandise shipped after the 25th day of any month may be 
dated as of the first (lay of the followino; month. Antici])ation shall 
not be allowed at a rate in excess of (j% per annum. 

4. The Code Authority shall innncdiately formulate re<ijulations 
defining the practice of selling on memorandum, consignment, or at 
retail. After such regulations are approved by the Administrator, it 
shall be unfair trade practice for anyone engaged in this Industry to 
sell merchandise on memorandum, consignment, or at retail in viola- 
tion thereof. 

5. It shall be unfair trade practice to make secret payment of 
alloAvances or refunds, rebates, connnissions, credits, or unearned 
discounts, Avhether in the form of money or otherwise, or the secret 
extension to certain purchasers, or to others also engaged in this 
Industry of special services or privileges, not openly extended to all 
on like terms and conditions. 

6. It shall be unfair trade practice to sell merchandise except upon 
terms as expressly stated upon the invoices pertinent to such sale. 

7. It shall be unfair trade practice to resort to subterfuge to evade 
this Code. 

Article X — Monopolies 

This Code shall not be construed or applied to promote or permit 
monopolies or monopolistic practices or to eliminate or oppress small 
enterprises or to discriminate against them. 

Article XI — Modifications 

1. 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 
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, but without limitation, 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. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator and 
such notice of hearing as he shall specify, and to become effective 
on approval by the President. 

Article XII 

The Administrator may after such notice and hearing and after 
making such appropriate amendments as may in his discretion be 
necessary extend the operation of this Code to such other geographi- 
cal divisions as may be subject to the Act. 

Article XIII — Effectivt: Date 

The effective date of this Code shall be the second Monday after 
it is approved by the President of the United States. 

Approved Code No. 64. 
Registry No. 228/01. 

o 



Approved Code No. 65 

CODE OF FAIR COMPETITION 

FOR THE 

ADVERTISING SPECIALTY INDUSTRY 

As Approved on October 31, 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 Advertising Specialty Industr}'', 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 w^ith 
respect thereto, and the Administrator having fovmd that 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 
otherw^ise, 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) As to all employees engaged in printing operations, the wage 
and hour provisions of this Code shall be superseded by the wage 
and hour provisions of the Code of Fair Competition for the Print- 
ing Industry when the latter Code becomes effective after approval 
by me. 

(2) To effectuate further the policies of the Act, an Advertising 
Specialty Industry Committee be created to cooperate with the Ad- 

29168° 296—84 34 (f)7) 



98 

ministrator as a planning and fair practice agency for the Advertis- 
ing Specialty Industry, which committee shall consist of five repre- 
sentatives of the Advertising Specialty 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, 

Adniinisttmtor. 

The White House, 

October 31, 1933. 



L 



October 23, 1933. 
The President, 

The White House . 
Sir: A Public Hearing on the Code of Fair Competition for the 
Advertising Specialty Industry in the United States, submitted by 
the Advertising Specialty National Association, Chicago, Illinois, 
was conducted in Washington on the 30th of August, 1933, in accord- 
ance with the provisions of the National Industrial Recovery Act. 
The Association claims to represent 72 percent of the industry. 

Provisions of This Code as ixd Hours and AVages 

III. Hours 

(1) The maximum hours of employment shall be forty (40) per 
week, except that owing to the seasonal nature of this Industry it is 
permitted that employees may, by permission of the Executive Com- 
mittee of the Code and with the approval of the Administrator, be 
employed during seasonal rush periods forty-eight (48) hours per 
week, provided that the rate of wages for all hours in excess of forty 
(40) per week shall be at least one and one third times the estab- 
lished rate for 40 hours, and further provided that such employees 
shall not be permitted to work more than 520 hours during any 
period of thirteen (13) consecutive weeks. 

(2) Maximum hours as provided above shall not apply to any 
emploj'^ee in a managerial or executive capacity who now receives 
thirty-five dollars ($35.00) per week or more. 

(3) No employee, except those hereinabove specifically exempted, 
who, during any one week period has worked for remuneration for 
the space of forty (40) hours, shall be employed to work during 
the same period or periods of time by any member of this industry. 

IV. Wages 

(a) The minimum wage that shall be paid by any employer in the 
Advertising Specialty Industry to any employee shall be thirty-five 
cents (35^) per hour or fourteen dollars ($14.00) per week for male 
employees, and thirty cents (30(/i) per hour or twelve dollars ($12.00) 
per week for female employees, each for fort}^ (40) hours of labor. 
The above wages are to be paid regardless of whether the employee 
is compensated on the basis of a time rate or a piece work 
performance. 

(b) Female employees performing the same type of work as 
male employees shall receive the same wage per hour as paid to 
male employees. 

(99) 



100 

(c) Apprentices and learners having no previous experience or 
employment in this Industry shall, during the six-weeks' learning 
period, receive not less than 80 percent of the minimum rates pre- 
scribed above for forty (40) hours of labor per week. At no time 
shall the number of apprentices or learners exceed eight percent 
(8%) of the total number of employees in any single unit of the 
Industry. 

(d) On and after the effective dat«, no manufacturer shall permit 
any work to be done in the homes of workers, all work being done 
inside the factory. 

(e) It is the policy of the members of this Industry to refrain 
from reducing the compensation for employment which compensa- 
tion was prior to June 16, 1933, in excess of the minimum wage 
herein set forth, notwithstanding that the hours of work in such 
employment may be reduced ; and all members of this Industry shall 
endeavor to increase the pay of all employees in excess of the mini- 
mum wage, as herein set forth, by an equitable adjustment of all pay 
schedules proportionate to the increase in compensation as deter- 
mined by the minimum wage herein provided; Provided, however, 
that where a State law provides a higher minimum wage, no person 
employed within that State shall be paid a wage lower than that 
required by such State law. 

V. Child Labor 

No person under the age of sixteen years shall be employed in this 
industry; Provided, however, that where a State law provides a 
higher minimum age no person below the age specified by such State 
law shall be employed within that State. 

ECONOMIC EFFECT OF THE CODE 

There are approximately 300 advertising specialty manufacturers 
of which 47 do the bulk of the business and employ approximately 
one third of the 7,000 employees in the Industry, 

A sample analysis of the work week of the 43 companies under 
consideration (May 1933) showed an average number of hours 
worked per week of 40. All companies being considered from which 
reports could be obtained showed the much higher average of 48 
hours per week per emploj^ee. 

The Industry in general now reports that they are working em- 
ployees 40 hours per week as a result of the Keemployment Program 
and it is estimated that there has been an increase in employment 
of approximately 15 percent. It is probable that no immediate in- 
crease in employment will be effected but it is estimated that there 
will be an increase of about 20 percent in the total payrolls. 

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 



101 

(b) The Advertising Specialty National Association, the a|)plicant 
group herein, imposes no inequitable resti-iotions on admission to 
membershii) and is truly representative of the Advertising Specialty 
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, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

ADVERTISING SPECIALTY INDUSTRY 

I. PuRFOSES 

To effectuate the policy of Title I of the National Industrial Re- 
covery Act by reducing- unemployment, improving the standards of 
labor, establishing a reduction in working hours, eliminating prac- 
tices inimical to the interests of the public, employers and employees, 
removing from this Industry any existing obstructions to the free 
flow of interstate and foreign commerce — and thereby increasing the 
consumption of industrial and agricultural products by increasing 
purchasing power, to bring wages paid in the industry to such levels 
as are necessary for the highest standards of living attainable, to 
revise wage scales from time to time, to reflect changes in living 
costs, to restore to the members of this industry their income on a 
level which makes possible the payment of such w^ages, and to pro- 
mote the general welfare, the following provisions are established 
as a Code of Fair Competition for the Advertising Specialty 
Industry. 

II. Defixitions 

(a) The Advertising Specialty Industry as used herein is defined 
to mean the manufacture of articles of utility, ornament, or beauty, 
bearing the advertising imprint of a firm, corporation, bank, or in- 
dividual, or designed for distribution as good-will, reminder, or 
novelty advertising. 

(b) The term "manufacture" as used herein is defined to mean 
not only the manufacture of parts, but the assembling of such parts 
into the finished article, and also the imprinting of an advertisement 
on such article. Any firm, partnership, corporation, or individual 
engaged in any or all of the above mentioned activities as a staple 
line shall be considered a " manufacturer " in the Advertising Spe- 
cialty Industry. 

(c) The term '■■ employees "' as used herein shall include all per- 
sons employed in any phase of the manufacture, assembly, or im- 
printing of advertising specialties, or in the operation and mainte- 
nance of plants, and all persons employed in office work connected 
with the business. 

(d) The term ''association " as used herein shall be understood to 
mean the Advertising Specialty National Association, or any trade 
association that may be organized as successor thereto. 

(e) The term " member or members " as used herein shall be de- 
fined as any person, partnership, association, or corporation engaged 
in the manufacture of advertising specialties, who engage in their 
business an}- employees as defined above. 

(102) 



103 

(f) The term "effective date" as used herein is defined to be the 
second Monday after this CVxle shall liave been approved by the 
President. 

III. Hours 

(1) The maximum hours of employment shall be forty (40) per 
week, except that owing to the seasonal nature of this industry it is 
permitted that employees may, by permission of the Executive Com- 
mittee of the Code and with the approval of the Administrator, be 
emp]o3'ed during seasonal rush periods forty-eight (48) hours per 
w^eek. provided that the rate of wages for all hours in excess of 
forty (40) per week shall be at least one and one third times the 
established rate for 40 hours, and further provided that such em- 
ployees shall not be permitted to work more than 520 hours during 
any period of thirteen (13) consecutive weeks. 

(2) Maximum hours as provided above shall not apply to any 
employee in a managerial or executive capacity who now receives 
thirty-five dollars ($35.00) per week or more. 

(3) No employee, except those hereinabove specifically exempted, 
who, during any one week period has worked for remuneration for 
the space of forty (40) hours, shall be employed to work during the 
same period or periods of time by any member of this industry. 

IV. Wages 

(a) The minimum wage that shall be paid by any employer in 
the Advertising Specialty Industry to any employee shall be thirty- 
five cents (35^) per hour or fourteen dollars ($14.00) per week for 
male employees, and thirty cents (30^) per hour or twelve dollars 
($12.00) per week for female employees, each for forty (40) hours 
of labor. The above wages are to be paid regardless of whether the 
employee is compensated on the basis of a time rate or a piece work 
performance. 

(b) Female employees performing the same type of work as male 
employees shall receive the same wage per hour as paid to male 
employees. 

(c) Apprentices and learners having no previous experience or 
employment in this industry shall, during the six-weeks' learning 
period, receive not less than 80 percent of the minimum rates pre- 
scribed above for forty (40) hours of labor per week. At no time 
shall the number of apprentices or learners exceed eight percent 
(8%) of the total number of employees in any single unit of the 
industry. 

(d) On and after the effective date, no manufacturer shall permit 
any work to be done in the homes of workers, all w^ork being done 
inside the factory. 

(e) It is the policy of the members of this industry to refrain from 
reducing the compensation for employment, which compensation was 
prior to June 16, 1933, in excess of the minimum wage herein set 
forth, notwithstanding that the hours of work in such employment 
may be reduced ; and all members of this industry shall endeavor to 
increase the pay of all employees in excess of the minimum wage, as 
herein set forth, by an equitable adjustment of all pay schedules 



104 

proportionate to the increcase in compensation as determined by the 
minimum wage herein provided; Provided, however, that where 
a State law provides a higher minimum wage, no person employed 
within that State shall be paid a wage lower than that required by 
such State law. 

V. Child Labor 

No person under the age of sixteen years shall be employed in tliis 
industry; Provided, however, that where a State law provides a 
higher minimum age no person below the age specified by such State 
law shall be employed within that State. 

VI. Participation 

(a) Any member of the Advertising Specialty Industry is eligible 
for membership in the Advertising Specialty National Association 
and is entitled to all the benefits thereof, upon the acceptance by 
such member of a reasonable share of the cost and responsibility of 
the Code development and administration. No inequitable restric- 
tions on admission to membership shall be imposed by the said Ad- 
vertising Specialty National Association or any association or group 
who are members of the Advertising Specialty Industry. 

YII. Administration 

(a) To effectuate further the policies of the Act, an Advertising 
Specialty Industry Committee is hereby designated to cooperate with 
the Administrator as a Planning and Fair Practice Agency for the 
Advertising Specialty Industry. This Committee shall consist of 
five representatives of the Advertising Specialty Industry elected by 
a fair method of selection, to be approved by the Administrator and, 
at his discretion, not more than three members without vote ap- 
pointed 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 which 
will tend to effectuate the operation of the provisions of this Code 
and the policy of the National Industrial Recovery Act. 

(b) The Code Authority shall have the following duties and pow- 
ers to the extent permitted by this Code and subject to review by the 
Administrator. 

(1) To receive duly certified returns every four weeks showing 
actual hours worked by employees, and 

(2) Reports as to minimum weekly wages, and 

(3) Such other reports as may be deemed necessary by the Execu- 
tive Committee, subject to the approval of the Administrator, for 
the effective administration of this Code. 

(4) Recommendations for setting up a service Bureau for en- 
gineering, accounting, credit and/or other purposes to aid all persons 
engaged in the Industry in meeting the requirements of this Code. 

(5) Recommendations for requirements by the Administrator as 
to fair practices by persons engaged in the Advertising Specialty 
Industry, in respect to methods and conditions for marketing their 
products. 



I 



105 

(6) Kecommendations for regulation of competitive bidding on 
special orders, defined to mean orders other than those offered in 
the regular lines issued by persons engaged in the Advertising 
Specialty Industry. 

(7) Kecommendations for dealing with any inequalities that may 
otherwise arise to endanger the stability of the Industry, and of 
production and employment. 

Except as otherwise provided in the National Industrial Recov- 
ery Act all statistics, data and information filed in accordance with 
the provisions of Article III shall be confidential, and the statistics, 
data and other 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 Executive Committee 
of the Advertising Specialty Industry shall have access to any and 
all statistics, data, and information that may be furnished in accord- 
ance with these provisions. 

In addition to information required to be submitted to the code 
authority, there shall be furnished to government agencies such sta- 
tistical information as the Administrator may deem necessary. 

VIII. Unfair Trade Practices 

The following shall be considered unfair trade practices for this 
Industry : 

(a) It shall be an unfair practice to dispose of out-of-date or 
distress products, commonly known as last editions or job lots, in 
such a way as to affect adversely the soundness and stability of the 
Industry. 

(b) It shall be an unfair trade practice to pirate original designs, 
drawings, sketches, dummies, or copy of any product that has been 
submitted to a prospective customer by a competitor: 

(c) Price discrimination as between two or more buyers of the 
same quantity of the same article shall be unfair practice. 

(d) It shall be an unfair trade practice for any member to sell 
any product at a price below his individual cost of production. 

IX. General 

Section 1. (a) Employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from 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 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 

(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. 

Sec. 2. (a) This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 



106 

provision of Sub section (b) of Section 10 of the National Industrial 
Recovery 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. 

(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 circumstances or experience may indicate. It is contem- 
plated 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 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. 

(c) Any member of this industry who, prior to June 16, 1933, con- 
tracted to buy or sell any goods, wares, or merchandise at a price 
fixed as of the date of said contract, for future delivery, shall 
make a bona fide effort to arrive at an equitable adjustment on the 
price thereof as fixed by said contract, to meet any proper increase 
in the cost of such goods, wares, or merchandise imposed by virtue 
of any provision of the National Industrial Recovery Act; and in 
the event such effort fails to result in a mutually satisfactory ad- 
iustment, either party to said contract may refer the same for ad- 
justment to the Planning and Fair Practice Agency of the Industry, 
which said Agency with the aid and assistance of the Administrator 
or his properly designated agent or agents, shall endeavor to arrive 
at an equitable adjustment thereof. 

(d) Within each State members of the Advertising Specialty 
Industry shall comply with any laws of such State imposing more 
stringent requirements regulating the age of employees, wages, hours 
of work, or health, fire, or general working conditions, than under 
this Code. 

Approved Code No. 65. 
Registry No. 1702/2/01. 

o 



Approved Code No. 66 
CODE OF FAIR COMPETITION 

FOR THE 

MOTOR BUS INDUSTRY 

As Approved on October 31, 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 Motor Bus 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 such a said code of fair com- 
petition 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 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 
recommendations 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 dmiiiis trot or. 

The White House, 

October 31, W33. 

29169° 296-85 34 (107) 



October 5, 1933. 
The President, 

The 'White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Motor Bus Industry of the United States, conducted in 
Washington on the 30th of August 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

Provisions of This Code as to Wages and Hours 

Maximum hours for employees are established as follows : Cleri- 
cal employees — 40 hours per week averaged over a period of 4 weeks. 
Garage, service, and maintenance employees — 48 hours per week 
averaged over a period of 6 weeks witli a maximum of 54 hours in 
any one week. Bus operators and ticket agents — 48 hours per week 
averaged over a period of 6 weeks with a maximum of 54 hours in 
any one week provided that during any 3-month period a maximum 
of 54 hours is established. Watchmen and janitors, 56 hours in any 
one week. No employee working over 35 hours per week may be 
employed for more than 24 days in any 28-day period. 

Minimum wage rates are established ranging from $15.00 per 
week in any city of over 500,000 population to $12.00 per week in 
towns of less than 2,500 population. Provision is made that rates of 
pay for employees whose hours of employment have been reduced 
by the provisions of this Code shall be increased by an equitable 
readjustment and that rates of pay for employees whose hours have 
not been so reduced shall not be decreased below those in effect for 
the week ending June 17, 1933. 

Emploj^ment of any person under 16 years of age and of any 
person as a bus driver under 21 years of age is prohibited. 

In recommending the approval of the hour provisions of this 
Code it has been necessary to recognize that passenger motor car- 
rier transportation is a continuous public service requiring twenty- 
four hours per day operation seven days per week with flow of traffic 
reaching periodica] peaks each day, week, and season in the year. 
Its schedules are continuousl}^ subject to interference by reason of 
road, weather, traffic, and other emergency conditions. Moreover, 
it is competitive with steam rail passenger transportation not oper- 
ating under the provisions of the National Industrial Recovery Act. 

To adopt a schedule of less hours at this time would undoubtedly 
result in a great hardship to the Industry. As a step toward the 
realization of a shorter hour week, the Industry is required under the 
Code to study ways and means of still further improving working 
conditions and to present the results of its study to the Administra- 
tor by May 1, 1934. 

(108) 



109 
Economic Effect of Code 

Under the recommended Code, the Motor Bus Industry will re- 
emjDloy 12,586 additional wage earners or about 18 percent according 
to an estimate made by the Division of Economic Itesearch and 
Planning. This will increase the annual pay roll of the Industry by 
$15,152,000 or about 18 percent. 

The Motor Bus Industry has suffered not only from the depression 
but also from its disadvantageous comjietitive position with other 
passenger carriers. The taxes of its principal competitor, the rail- 
road, have increased but 25 percent since 1911) as contrasted witli a 
600 percent increase in the case of the Motor Bus Industry. The 
annual tax per bus was $859 in 1932, an increase of $523 per bus 
since 1925. 

In view of these considerations it is believed that if this Industry 
is to share impartially in business recovery, the provisions of this 
Code are all that can he reasonably expectetl at this time. 

Findings 

The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title 1 of the Act, including, without limi- 
tation, 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 
Motor Bus Industry ; and that 

(c) The Code as recommended is not designed to jpromote monopo- 
lies 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 evidence adduced during this hearing and from recommen- 
dations and reports of the various Advisory Boards, it is believed 
that this Code as now proposed and revised is satisfactory to this 
Industry, labor, the public, and this Administration. It is recom- 
mended, therefore, that this Code, as herewith submitted, be 
approved. 

Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION 

FOR THE 

MOTOR BUS INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Motor Bus Industry, and shall be the 
standard of fair competition for the Motor Bus Industry. 

Article II — Definitions 

1. The term " Industry " as used herein includes all facilities for 
transportation of persons, or of persons and package express, excess 
baggage, newspapers, or United States mail by " passenger motor 
carrier " and the performance of all service and the transaction of all 
business incident thereto; provided, however, that nothing in this 
definition shall include : 

(a) Motor vehicles employed solely in transporting school children 
and teachers to and from school. 

(b) Taxi cabs or other motor vehicles performing a similar service 
having a capacity of not more than six (6) passengers and not 
operated on a regular route or between fixed termini. 

(c) Motor vehicles owned or operated by or on behalf of hotels and 
used exclusively for the transportation of hotel patrons between ho- 
tels and local railroads or other common-carrier stations. 

(d) Transportation subject to the Code of Fair Competition for 
the Transit Industry, which is defined to include the following: 

" 1. Electric railwa3^s and trolley bus lines transporting passen- 
gers by electric car or trolley bus ; provided that electric railways en- 
gaged 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 busses transporting passengers solely within State 
lines, except when engaged in interstate commerce. 

" 3. Automotive busses 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 ; 

(110) 



Ill 

" (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 re- 
gard to a specific route or line being or not being engaged in inter- 
state commerce beyond the limitation provided for in paragraph 
3 of this Article." 

2. The term " passenger motor carrier ", as used herein, includes 
any individual, firm, corporation, copartnership, or other persons, 
their lessees, trustees, or receivers, transporting, or offering or pro- 
posing to transport, by motor vehicle for compensation in the Motor 
Bus Industry, either on a fixed-fare or share-expense basis, persons, 
or persons and package express, excess baggage, newspapers, or 
United States mail over the public highways of the United States.^ 

3. The term " motor carrier transportation agent " as used herein 
includes any person who acts as agent in the furnishing of transpor- 
tation by any passenger motor carrier, irrespective of whether such 
agent is otherwise employed by such passenger motor carrier or 
whether such agent is an individual, firm, corporation, co-partner- 
ship, trustee, or other person, or whether such agent sells or negoti- 
ates the sale of, or otherwise for a commission, fee, or tip, acts as an 
intermediary in the sale of passenger transportation in the Industry. 

4. The term " employee " as used herein shall include any person, 
except ticket brokers and commission agents, engaged in any phase 
of the Industry, in any capacity, receiving compensation, irrespective 
of the method of payment of his compensation, or of his interest 
otherwise in said Industry. 

5. This Code shall become effective upon the second Monday after 
this Code shall have been approved by the President of the United 
States. 

6. Population, for the purposes of this Code, shall be determined 
by reference to the 1930 Federal Census. 

7. The terms " President ", "Act ", and "Administrator " as used 
herein shall mean, respectively, the President of the United States, 
the National Industrial Recovery Act, and the Administrator of said 
Act. 

Article III — Hours 

1. The following employees shall not work or be permitted to 
work in excess of the following hours : 

(a) Clerical employees and employees not specifically designated 
hereafter in this Article — forty (40) hours per week averaged over 
a period of any four (4) weeks. 

(b) Garage, service, and maintenance employees — forty-eight (48) 
hours per week averaged over a period of six (6) weeks with a maxi- 
mum of fifty-four (54) hours in any one week. 

(c) Bus operators and ticket agents — forty-eight (48) hours per 
week averaged over a period of six (6) weeks with a maximum of 
fifty-four (54) hours in any one week for any nine (9) months in 
any twelve (12) months period. For the remaining three (3) months 
of such twelve (12) months period forty-eight (48) hours per week 
with an allowance not to exceed six (6) hours per week. 

(d) Watchmen and janitors — fifty-six (56) hours in any one week. 
This group not to exceed five (5) percent of the employees of any 
passenger motor carrier. 



112 

(e) No employee working over thirty-five (35) hours per week 
shall be employed for more than twenty-four (24) days in any 
twent^'-eight (28) day period. 

(f) The provisions of this Article shall not apply to persons em- 
ployed in a managerial, executive, or supervisory capacity, porters, 
or emergency crews during periods of emergency caused by storms, 
floods, accidents, or other causes beyond the control of passenger 
motor carriers. 

2. Kegulations as to hours of service and wa^es for porters shall 
be formulated by the Motor Bus Code Authority for the approval 
of the Administrator within ninety (90) days after the effective date. 

3. It shall be the duty of the Motor Bus Code Authority as herein- 
after described to study ways and means of improving operating and 
working conditions and to report the results of its study to the 
Administrator prior to May 1, 1934. 

Article IV — Minimum Wages 

1. (a) No employee in the Industi'y other than porters shall be 
paid at less than the rate of $15.00 per week in any city of over 
500,000 population, or in the immediate trade area of such city ; nor 
less than at the rate of $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 at the rate of $14.00 per week in any city of between 
2,500 and 250,000 population or in the immediate trade area of such 
city; nor less than at the rate of $12.00 per week in towns of less 
than 2,500 population; 

(b) It is agreed that paragraph (a) establishes a minimum rate of 
pay, regardless of whether the employee is compensated on the basis 
of time rate, mileage rate, or piecework performance. 

2. The rates of pay of employees whose hours of employment have 
been reduced by the provisions of this Code shall be increased by an 
equitable readjustment and the rat^s of pay of employees whose 
hours have not been reduced shall not be decreased, as a result of this 
Code, below those in effect in the week ending June 17, 1933. 

3. Nothing in this Article shall interfere with wage agreements 
in which wage rates are established higher than those established 
herein. 

Article V — Child Labor 

No passenger motor carrier shall employ a motor-bus driver under 
twenty-one (21) years of age or any other person under the age of 
sixteen (16) years. 

Article VI — Administration and Trade Practices 

To further effectuate the policies of the Act a Motor Bus Code 
Authority is set up to cooperate with the Administrator in the 
administration of this Code. 

1. The organization of the Motor Bus Code Authority shall be as 
follows : ' 



113 

(a) The Motor Bus Code Authority shall consist of seven (7) 
voting nienibers, one of which sliaJl at all times be the President of 
the National Association of Motor Bus Operators and one of which 
shall at all times be the Secretary of said Association. The Admin- 
istrator nuiy appoint not more than three (3) nonvoting members, 
in which may be included representation for employees. 

(b) Of the remaining five (5) voting members, three (3) shall be 
chosen by those members of the Board of Directors of the National 
Association of Motor Bus Operators who under the By-Laws of the 
Association represent the eleven (11) designated geographical dis- 
tricts of the United States. The other two (2) voting members 
shall be elected from among operating representatives of passenger 
motor carriers not holding membership in the Association, who are 
entitled to participate in the selection of the Code Authority. 

The method of selection of such members shall be subject to the 
approval of the Administrator. 

(c) Any trade or industrial association participating in the selec- 
tion or activities of the Motor Bus Code Authority shall at all times 
comply with the following requirements: (1) It shall impose no 
inequitable restrictions on membership. (2) It shall not violate any 
rule or regulation prescribed by the President of the United States 
under this Act, or any other provision of the National Industrial 
Recovery Act. (3) It shall submit to the Administrator true copies 
of its Articles of Association, Bylaws, regulations, and any amend- 
ments when made thereto, and such other information as to member- 
ship, organization and activities as the Administrator may require 
from time to time to effectuate the policies of this Act. 

(d) The Administrator shall provide such hearings as he may 
deem proper for those claiming the right to be represented on the 
Code Authority, and thereafter may change the method of selection 
and the organizations selecting the members of the Motor Bus Code 
Authority, in order that it shall be truly representative of the 
Industry. 

(e) An appeal from any action by the Code Authority affecting 
the rights of any employer or any employee may be taken to the 
Administrator. 

(f) Hereafter only employers assenting to this Code shall be en- 
titled to participate in the selection of the Code Authority and to 
share the benefits of its activities as hereinafter set forth. 

(g) The Motor Bus Code Authority shall, as soon as possible after 
the approval of this Code, appoint two (2) individuals who shall, 
jointly wnth two (2) individuals appointed by the Transit Code Au- 
thority, hear and finally determine any question that may be referred 
to it by the Motor Bu,s Code Authority as to whether any individual 
bus operation defined in Section 1 of Article II of this Code shall 
be included under this Code. In case the joint board fails or re- 
fuses to decide within ten (10) days any question submitted, the 
matter shall be referred to the Administrator for final disposition. 

2. The Motor Bus Code Authority shall have the following duties 
and powers to the extent permitted by the Act, and subject to review 
by the Administrator : 

(a) To elect officers and assign to them such duties as it may con- 
sider advisable, and to provide rules for the selection of its mem- 



114 

bers by the National Association of Motor Bus Operators and rep- 
resentatives of other passenger motor carriers entitled to participate 
therein, and for its continuance as the administrative agency of this 
Code, in accordance with the terms of the Act and the principles 
hereirt. set forth. 

(b) To provide for administration and enforcement of the pro- 
visions of this Code. 

(c) To require periodical reports from the members of the Indus- 
try with respect to revenues, expenses, and other charges, 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 mav be kept informed with respect to the observance 
thereof; and to furnish to government agencies such statistical in- 
formation as the Administrator may deem necessary for the purpose 
recited in Section 3 (a) of the Act. 

(d) To recommend to the Administrator within thirty (30) days a 
uniform system of accounting for the Industry which upon his ap- 
proval shall be used in furnishing the aforesaid reports. 

(e) To cooperate with the Administrator in regulating the use 
of the N.R.xA.. insignia by passenger motor carriers in the Industry 
who assent to this Code, so long as they conform to its provisions. 

(f ) To coordinate the administration of this Code with such other 
Codes, if any, as may be related to the Industry, or any subdivision 
thereof, with a view to promoting joint and harmonious action upon 
matters of common interest. 

(g) To secure an equitable and proportionate payment of the 
expense of maintaining the Motor Bus Code Authority and its ac- 
tivities from those passenger motor carriers accepting the benefits 
of the activities of the Motor Bus Code Authority, or otherwise 
assenting to this Code. 

(h) To delegate to such trade associations and other agencies as it 
deems proper the carrying out of any of its activities herein, and 
to pay such agencies the cost thereof; provided, that such agencies 
shall at all times be subject to and comply with the provisions of 
this Code, and provided that nothing in this Section shall relieve 
the Motor Bus Code Authority of its duties or responsibilities under 
this Code. 

(i) To initiate, consider, and submit proposals for amendments 
and modifications of this Code, which, upon approval by the Ad- 
ministrator after such hearings as he may prescribe, shall be in- 
corporated herein with the same force and effect as if originally 
made a part hereof. 

Article VII — Trade Practices 

1. Registration of 'passenger motor carriers. — (a) Each passenger 
motor carrier shall within thirty (30) days after the approval of this 
Code register its operations by filing a statement with the Motor Bus 
Code Authority setting forth the routes over which it is operating. 

(b) Passenger motor carriers establishing any new motor bus 
operation or extending any motor bus operation after the date of 
the approval of their Code shall secure therefor a certificate of 
convenience and necessity, or permit, from each and every State in 



115 

which such operation is conducted, authorized intrastate transporta- 
tion along the route or routes of such new operation, or extension of 
existing operation. Sucli new route, or extension of existing route 
sliall be registered by submitting and filing with the Motor Bus 
Code Authority within fifteen (15) days after the institution of 
service thereon the following : 

(1) A description of such route or routes. 

(2) A certified copy of a certificate of convenience and necessity, 
or permit, issued by the State or States as herein provided. 

(3) Evidence of compliance with such other conditions as the Ad- 
ministrator shall upon recommendation of the Motor Bus Code 
Authority establish. 

(c) The Administrator, on his own initiative or on the recom- 
mendation of the Code Authority, may grant exemptions as to the 
requirements for the submission of a certificate of convenience and 
necessity, or permit, in any State in which such certificate or permit 
is not required, or in any case in which the refusal of any such 
certificate or permit by any State has been clearly unreasonable 
and worked undue hardship. 

2. Tari-ffs. — (a) Every passenger motor carrier sliall within 
twenty (20) days after the approval of this Code publish tariffs of 
rates, fares, and charges for the transportation of persons and for 
services between all points on its lines by filing five (5) copies thereof 
with the Motor Bus Code Authority at its office in Washington, D.C., 
as agent for the Administration. Thereafter, no passenger motor 
carrier or motor carrier transportation agent shall charge or demand 
or collect, or receive a greater or less or different, compensation for 
the transportation of persons or for any service in connection there- 
with, between the points named in such tariffs than the rates, fares, 
or charges stated in the published tariffs of such passenger motor 
carrier, nor extend to any person any privilege or facilities except 
such as are specified in such tariffs. 

(b) Any passenger motor carrier may at any time file with the 
Motor Bus Code Authority five (5) copies of any changes, amend- 
ments, or supplements to its tariffs which shall, unless otherwise pro- 
vided by the Motor Bus Code Authority with the approval of the 
Administrator, become effective as such changes, amendments, or 
supplements may provide, and have the same force and effect as the 
original schedules filed. 

3. Bonds or Insurance. — Passenger motor carriers shall comply, 
as to interstate commerce, with the lawful regulations of the States 
through which they operate pertaining to bonds or insurance or 
liability protection required for j)assenger motor carriers engaged 
in intrastate commerce, for the payment of any final judgment re- 
covered against such motor carriers on account of the death of or 
injury to persons or loss of or damage to property resulting from 
the operation, maintenance, or use of motor vehicles employed by 
such carriers. The Administrator, on the recommendation of the 
Code Authority and after such hearing as he may deem proper, may 
make such modifications and impose such other conditions and re- 
quirements in respect to providing bonds, insurance, or liability pro- 
tection by any passenger motor carriers as he shall deem proper to 
carry out the intention of these provisions. 



116 

4. Motor Camer Transportation Agent. — After forty-five (45) 
days from the approval of this Code, no motor carrier transporta- 
tion agent shall sell transportation furnished by a passenger motor 
carrier unless such passenger motor carrier is registered with the 
Motor Bus Code Authority as hereinabove provided. 

5. Ticket Sales Covirnissions. — Unless otherwise approved by the 
Motor Bus Code Authority, no passenger motor carrier or motor 
carrier transportation agent, where the latter deals through sub- 
agents or ticket brokers, shall pay to any other passenger motor 
carrier, commission agent, ticket broker, or connecting carrier, di- 
rectly or indirectly, through subsidy or otherwise, a sum in excess 
of ten (10) percent of the amount of the ticket sales made by such 
agent, broker, or carrier as compensation for sales of transportation 
by passenger motor carriers. 

6. Free Transportation. — No passenger motor carrier shall issue 
free or reduced-rate transportation to employees of another carrier 
except when a request therefor has been placed through the general 
oflSees of such other carrier. 

7. Interline Settlements. — Settlements on interline reclaims shall 
be within thirty (30) days from the date billing is received. 

, Article VIII — General 

(1) (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 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 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) Passenger motor carriers shall comply with the maximum 
hours of labor, minimum rates of pay, and other conditions of 
employment, approved or prescribed by the President. 

(2) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
vision of Subsection (b) of Section 10 of the 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, but without limita- 
tion, 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. 

(3) Violation by any passenger motor carrier or motor carrier 
transportation agent, as herein defined, of any provision of this 
Code shall be considered an unfair method of competition, and 
offenders shall be subject to the penalties imposed by the Act. 

(4) Full recognition is accorded the effect of the State laws 
that regulate intrastate business, and it is neither the intent nor 
purpose of this Code to abrogate, change, or modify the effect of 
any State law in respect to any passenger motor carrier business 
which shall be strictly intrastate in character. 



117 

(5) Nothing in this Code shall be so applied as to permit -monop- 
olies or monopolistic practices, or to eliminate, or oppress, or dis- 
criminate aujainst small enterprises. 

(G) Within each State this Code shall not supersede any laws of 
such State inij)osing more strin<;ent requirements on ])assen<^er motor 
carriers, regulatinj^ the a<^'e of employees, \va<jjes, hours of work, 
health, fire, or fjeneral workin<>- conditions than under this Code. 

(7) Each employer shall post in a conspicuous place in each office 
and garage a copy of this Code noting thereon that the labor pro- 
visions are set forth in Section 4 of Article II, Articles III, IV, V. 
Paragraph (e) of Section I of Article VI, and Sections 1, G, and 7 or 
Article VIII. 

Approved Code No. GO. 
Kegistry No. 1741/2/03. 

O 



Approved Code No. 67 
CODE OF FAIR COMPETITION 

FOR THE 

FERTILIZER INDUSTRY 

As Approved on October 31, 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 Fertilizer 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, 

Administrator. 

The White House, 

October SI, 1933. 

29933 296-167 34 (119) 



October 25, 1933. 
The President, 

The White House. 
Sir: This is a report of the hearing on the Code of Fair Compe- 
tition for the Fertilizer Industry conducted in Washington on the 
6th of September, 1933, in accordance with the provisions of the 
National Industrial Recovery Act. 

Provisions of This Code As To Hours and Wages 

Article IV 

Section 2. Mawimvmi Hours of Labor. — a. No employee in the 
Fertilizer Industry shall be required or permitted to work more than 
40 hours in any one week or eight hours in any one day except as 
follows : 

1. Foremen, superintendents, managers, salesmen, chemists, and 
officials. 

2. During the rush of the planting season the hours of labor may 
exceed the maximum above prescribed by eight hours a week, and in 
the case of skilled key men the hours of labor may exceed the maxi- 
mum above prescribed by 20 hours in any week, but in no event shall 
employees be permitted to work more than an average of 40 hours a 
week over any consecutive four-months' period. 

3. Office employees shall not be required or permitted to work 
more than an average of 40 hours a week in any four months' period. 

4. Employees engaged in any continuous operation when other 
competent employees are readily available for such work shall not 
be required or permitted to work more than 40 hours in any one 
week, and in no case more than 48 hours in any one week. 

5. Repair shop crews, engineers, electricians, and watching crews 
shall not be required or permitted to work more than 40 hours in 
any one week, with a tolerance of 10 percent, except in the case of 
emergency. 

b. Overtime shall be paid at the rate of one and one-third times 
the normal rate for all work in the excess of eight hours a day, except 
in the case of office employees. 

c. Every employee in the Fertilizer Industry shall be entitled to 
one day of rest a week. 

Section 3. Miiummn Rates of Pay. — a. No employee in the Fer- 
tilizer Industry shall be paid less than the following: 35 cents an 
l)our in the Northern area, 25 cents an hour in the Southern area, 
35 cents an hour in the Midwestern area, 40 cents an hour in the 
Pacific Coast area, and 20 cents an hour in Puerto Rico. 

b. The Northern area comprises Maine, New Hampshire, Vermont, 
Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, 
New Jersey, Maryland (except the Eastern Shore), New Castle 
County of Delaware, District of Columbia, and West Virginia. 

(120) 



► 



121 



c. Tlio Southern area comprises Kent and Sussex Counties of 
Delaware, tlie P^astern Shore of Maryhmd, Vir<rinia, North Carolina, 
South Carolina, Geor<^ia, Florida, Alabama, Mississippi, Arkansas, 
Louisiana, Oklahoma, Texas, and Tennessee. 

d. The Midwestern area comprises Ohio, Illinois, Indiana, Ken- 
tucky, Missouri, Kansas, Nebraska, South Dakota, North Dakota, 
Colorado, New Mexico, Arizona, Wyoming, Montana, Michij^an, 
AYisconsin, Minnesota and Iowa. 

e. The Pacific Coast area comprises Washin<^on, Oregon, Califor- 
nia, Idaho, Nevada, and Utah. 

ECONOMIC EFFECT OF THE CODE 

The Fertilizer Industry, as covered by the attached Code, is an 
Industry wdiose activity is intimately connected with the income and 
purchasing power of the farmer. Since 1929 gross agricultural in- 
come has declined from $10,000,000,000 to a little over $4,000,000,000, 
and has been accompanied by a decline in annual fertilizer consump- 
tion from 8,000,000 tons to 4,000,000 tons. 

Basically, this Code covers the mixers of fertilizer, some GOO in 
number, operating approximately 800 plants. Nearly three-fourths 
of these plants are located in the one-crop sections of the South and 
Southeast producing feitilizer to be used in connection with the 
cotton and tobacco crops. In addition to the mixed fertilizer pro- 
duced by these plants, certain unmixed substances, such as potash, 
nitrogen carriers and so forth, which may be used directly on the 
soil, are in competition with mixed fertilizer. A large proportion of 
such material is handled by the fertilizer mixing concerns, but some 
portion is marketed direct to dealers and consumers by the producers 
of such materials, and even by their importers. Importations of 
nitrate carriers, such as Chilean nitrate of soda, potash from Ger- 
many and superphosphate from Japan, have a serious effect on this 
Industry and, to a certain extent, have contributed to the demorali- 
zation of the Industry. For this reason the Code contains a great 
number of unfair trade practices wdiich are to be prohibited, and 
covers not only the mixing of fertilizer and its immediate sale, 
but also covers (as far as sales to dealers and consumers are con- 
cerned) the distribution of the competing products. 

It is believed that, for the ultimate good of the farmer, the con- 
trol prescribed and permitted in this Code is essential. In view of 
these conditions, ho w^ ever, it is highly important that the Govern- 
ment representation on the operation of this Code exercise carefully 
its functions. 

The Fertilizer Industry is one with extremely seasonal operation. 
Thirty-five percent of the annual production of this Industry is 
moved in one month and 85 percent of it is moved in approximately 
three months of each year. This ])eriod is a period of farm activity. 
The product is bulky and the plants, as a whole, are located near the 
consumer — that is, in agricultural areas. The percentage of common 
labor reaches to more than 70 percent of the total labor employed and 
is of the farm labor type. It seems important, therefore, that scales 
of wages be not set up so high as to disrupt the agricultural situation 
in the vicinity of fertilizer factories. 



122 

The highest recorded employment in the Fertilizer Industry was 
reached in March 1929, when nearly 38,000 workers were employed. 
The average or more normal figure of 1928 was 33,000 employees. 
This had decreased in 1932 to only 21,000 employees. The above 
figures, of course, apply to the peak season, during which the 
greatest portion of fertilizer is being mixed and delivered. 

The reduction in hours in this Code to an average of 40 for a 
four months' period, with overtime for all work in excess of eight 
hours per day, should increase the number of employees in the peak 
season to about 27,500 workers at the same scale of purchasing by 
agriculture as now exists. It is to be presumed, however, that bet- 
terment in prices of the products of agriculture will permit the pur- 
chase of increased quantities of fertilizer. 

The wages established in this Code are such as to increase nearly 
100 percent of the employees in the Southern area, and 90 percent of 
the employees in the Northern and Western areas. It will increase 
the wages of nearly 78 percent of the emploj'ees in the Pacific Coast 
area. The average wage in the Southern area in 1923 was 13.7 cents 
per hour, whereas the Code provides a minimum wage of 25 cents per 
hour. The average wage for the spring of 1923 in the Northern 
Area was 26.5 cents per hour, while the Code provides 35 cents per 
hour. It will be seen, therefore, that not only will this Code in- 
crease employment materially, but will raise very greatly the rate 
of pay throughout the entire United States. 

While the absolute wage rates provided by the Code still are not 
high, it is believed that this industry with its close interlock with 
agriculture can be affected only adversely if higher minimum wages 
are required. 

FINDINGS 

The Administrator finds that (a) The Code as recommended com- 
plies in all respects with the pertinent 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 applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Fertilizer 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, 

Hugh S. Johnson, 

A dmiiiis trator. 



CODE OF FAIR COMPETITION 

FOR THE 

FERTILIZER INDUSTRY 



The following provisions shall constitute the Code of Fair Com- 
petition for the Fertilizer Industry under the National Industrial 
Recovery Act : 

Article I— Purpose 

It is the purpose of this Code to aid in eliminating from the Fer- 
tilizer Industry destructive and unfair methods of competition, 
waste, and improper practices, to place the Industry upon a sounder 
basis and better enable it to serve labor and agriculture by bringing 
about higher wages, shorter working hours, better living conditions 
for employees, fair prices, and high-quality products for the farmer, 
and reasonable ])rofit to the producers of fertilizer and to the 
Industry generally. 

Article II — ^Definitions 

Section 1. a. The term " Fertilizer Industry " as used herein in- 
cludes the importation, production, and/or distribution of mixed 
fertilizer, superphosphate, and /or other fertilizer materials. This 
Code does not cover sulphuric acid, nor does it cover dealers. 
This Code does not cover the production of potash, phosphate rock, 
and/or nitrogen carriers, nor does it cover their distribution to 
producers and to persons other than dealers or consumers. This 
Code does cover the sale and distribution of potash, phosphate rock, 
and/or nitrogen carriers to dealers and/or consumers, whether made 
directly or through agents : Provided, however, that such sale and 
distribution by producers of such materials shall be exempted from 
the provisions of Article V, Production and New Capacity ; Article 
VI, Price Provisions, Section 1, Sales Below Cost Prohibited; and 
Sections 1, 2, 4, 5, and 6 of Article VII, Marketing Provisions, 
and shall also be exempted from the requirements of Article IX, 
Reports and Statistics, to the extent that producers of such ma- 
terials shall not be required thereunder to submit any reports or 
information concerning their costs of production, wages, hours of 
labor, other conditions of labor, or prices to others than dealers or 
consumers. 

b. In the event that any producer or importer of potash, phos- 
phate rock, or nitrogen carriers makes no sale of mixed fertilizer, 
superphosphate, or other fertilizer material to dealers and/or con- 
sumers, none of the provisions of this Code shall apply to such pro- 
ducer or importer. Provided, further, that if and when the pro- 
ducers and/or importers of potash shall have filed a Code of Fair 
Competition covering the ,sale and distribution of potash to dealers 
and/or consumers, which Code shall contain provisions the same as 

(123) 



124 

Article VI, Section 2, Open-Price Schedules; Article VII, Section 
3, Distribution Through Cooperative Associations, Section 7, Meth- 
ods of Quoting Prices, Methods of Distribution, and Methods of De- 
livery, Section 8, Exemption,s from Marketing Provisions, and all 
Sections of Article VIII, Unfair Practices Prohibited, in the form 
as approved by the President herein, and such Code with such pro- 
visions shall have been approved by the President and become ef- 
fective, such sale and distribution of potash shall be exempted en- 
tirely from this Code. Similarly, if and when the producers and/or 
importers of phosphate rock and/or nitrogen carriers shall have 
filed a Code of Fair Competition covering the sale and distribution 
of phosphate rock and/or nitrogen carriers to dealers and/or con- 
sumers, which Code shall contain the provisions just recited, and 
such Code with such provisions shall have been approved by the 
President and become effective, ,such sale and distribution of phos- 
phate rock and/or nitrogen carriers shall be exempted entirely from 
this Code. 

Sec. 2. The term " employee " as used herein includes any person 
engaged in any phase of the Industry in any capacity in the nature 
of employee, irrespective of the method of payment of his com- 
pensation. 

Sec. 3. The term " employer " as used herein includes anyone 
for whose benefit ,such an employee is so engaged. 

Sec. 4. The term " mixed fertilizer " means any combination or 
mixture of fertilizer materials, designed and fit for use in inducing 
increased crop jdelcls or plant growth when applied to the soil. 

Sec. 5. The term " fertilizer material " means any substance which 
is used with another substance in the manufacture of mixed fertil- 
izers, or for direct apj^lication to the soil, principally as a source of 
plant food, except unmanipulated manures of domestic origin. 

Sec. 6. The term " superphosphate " means the product resulting 
from mixing rock phosphate and sulphuric acid and/or phosphoric 
acid. 

Sec. 7. The term " grade '* as applied to mixed fertilizer, shall 
represent the minimum guarantee of its plant food expressed in terms 
cf nitrogen, available phosphoric acid, and water soluble potash, and 
such other substances as may be guaranteed. 

Sec. 8. The term " dealer " means any person, other than a pro- 
ducer, engaged in the business of buying mixed fertilizer, super- 
phosphate, and/or other fertilizer material for the purpose of selling 
at a profit. One buying for his own use, or principally for his own 
use and that of his tenants, shall not be deemed to be a dealer. A 
group of unincorporated consumer l)uyers acting collectively or 
through an individual for the purpose of contracting for a joint order 
is not a dealer. 

Sec. 9. The term " agent " means any person engaged in the busi- 
ness of distributing mixed fertilizer, superphosphate, and/or other 
fertilizer materials for a fixed compensation as provided in the pro- 
ducer's price list, and who guarantees the whole and complete 
performance of the terms of his contract with the producer. 

Sec. 10. The term " Fertilizer Recovery Committee " means the 
Connnittee created in accordance with Article III of this Code. 



Sec. 11. The term "zone" means a <reographical division of the 
United States established inider Article III of this Code. 

Sec. 12. 'J'he term '' pro(hicei' " means jiny member of tlie Industry 
engaged in tiie business of preparing, mixing, manufacturing, or 
importing mixed fertilizer, superphosphate, and 'oi- other tVrtilizer 
material for sale. 

Article III — Administijation 

Section 1. To eifectuate further tlie policies of the Act, a Ferti- 
lizer Recovery Committee is hereby designated to cooperate Avith the 
Administrator as a Planning and Fair Practice Agency for the 
Fertilizer Industry. This Connnittee, constituting the Code Author- 
ity, shall consist of not less than twelve representatives of the 
Fertilizer Industry selected by a fair method of selection to be ap- 
proved by the Administrator. Three members without vote may be 
appointed by the President of the United States. 

Sec. 2. The Code Authority is hereby empowered to collect from 
the industry such statistical information as, in the opinion of the 
Administrator, may be necessary to efl'ectuate Title I of the Na- 
tional Industrial Recovery Act and this Code. In addition to 
such information there shall be furnished to the Federal Trade 
Commission, for the use of the President of the United States, such 
information as the Federal Trade Commission or the President may 
deem necessary for the purposes recited in Section 3 (a) of the 
National Industrial Recovery Act. Such information may include 
wages, hours of labor, prices, production, stocks, orders, shipments, 
production capacity, and costs. Any or all information furnished 
to the Federal Trade Commission by any member of the Industry 
shall be subject to checking by said Commission for the purpose of 
verification by an examination of the books and accounts and 
records of such member. 

Sec. 3. In carrying out its functions, said Committee, subject to 
the approval of the Administrator, is authorized to divide the United 
States into appropriate trade zones based on such geographical, 
trade, and/or other conditions as shall best .serve the purposes of this 
Code, and to change such zones from time to time as may be found 
necessary. 

Sec. 4. The Code Authority may delegate or appoint individuals 
and subcommittees in carrying out its administrative work, with 
such of its power or powers as may from time to time be conferred 
by the Code Authority upon said individuals or subcommittees, re- 
sponsibility, however, to remain with the Code Authority. 

Sec. 0. The Code Authority shall appoint, from its own member- 
ship, an Administrative Committee of eight members. Said Com- 
mittee shall exercise such authority as may have been delegated to it 
by the Code ^Authority except that the Administrative Committee 
shall not make recommendations for the amendment of this Code 
unless recommendations for such amendments have been approved 
in writing by two-thirds of the members of the Code Authoritv. 
The Administrative Committee shall serve as the executive agency of 
the Fertilizer Recovery Committee, which constitutes the Code 
Authority. 

2993.3—34 2 



126 
Article IV — Labor Provisioxs 

vSection 1. Collective Bargaluing. — Pursuant to Section 7 (a) of 
the National Industrial Recoveiy Act, the following provisions are 
hereby embodied in and prescribed as part of this Code : 

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 joining, organizing, or assisting a labor organi- 
zation of his own choosing. 

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

Sec. 2. Maximum Hourfi of Labor. — a. No employee in the Fer- 
tilizer Industry shall be required or permitted to work more than 40 
hours in any one week or eight hours in any one day except as 
follows : 

1. Foremen, superintendents, managers, salesmen, chemists, and 
officials. 

2. During the rush of the planting season the hours of labor may 
exceed the maximum above prescribed by eight hours a week, and 
in the case of skilled key men the hours of labor may exceed the 
maximum above prescribed by 20 hours in any week, but in no 
event shall employees be permitted to work more than an average of 
40 hours a week over any consecutive four-months' period. 

3. Office employees shall not be required or permitted to work 
more than an average of 40 hours a week in any four-months' period. 

4. Employees engaged in any continuous operation when other 
competent employees are readih^ available for such work shall not be 
required or permitted to work more than 40 hours in any one week, 
and in no case more than 48 hours in any one week. 

5. Repair shop crews, engineers, electricians, and watching crews 
shall not be required or permitted to work more than 40 hours in any 
one week, with a tolerance of 10 per cent, except in the case of 
emergency. 

b. Overtime shall be paid at the rate of one and one-third times 
the normal rate for all work in the excess of eight hours a day, except 
in the case of office employees. 

c. Every employee in the Fertilizer Industry shall be entitled to 
one day of rest a week. 

Sec. 3. Miniviwii Rates of Pay. — a. No employee in the Fertilizer 
Industry shall be paid less than the following : 35 cents an hour in the 
Northern area, 25 cents an hour in the Southern area. 35 cents an 
hour in the Midwestern area, 40 cents an hour in the Pacific Coast 
area, and 20 cents an hour in Puerto Kico. 

b. The Northern area comprises Maine, New Hampshire, Vermont, 
Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, 
New Jersey, Maryland (except the Eastern Shore), New Castle 
County of Delaware, District of Columbia, and West Virginia. 



127 

c. The Southern area coiuprises Kent and Sussex Counties of 
Delaware, the Eastern Shore of Maryland, Virginia, North Caro- 
lina, South Carolina, Georgia, Florida, Alabama, Mississippi, Arkan- 
sas, Louisiana, Oklahoma, Texas, and Tennessee. 

d. The Midwestern area comprises Oliio, Illinois, Indiana, Ken- 
tucky, Missouri, Kansas, Nebraska, South Dakota, Nortii Dakota. 
Colorado, New Mexico, Arizona, Wyoming, Montana, Michigan, 
Wisconsin, Minnesota, and Iowa. 

e. The Pacific Coast area comprises Washington, Oregon, Cali- 
fornia, Idaho, Nevada, and Utah. 

Sec. 4. Child Lahor Prohibited. — No employee under the age of 
16 years shall be employed in the Fertilizer Industry. 

Sec. 5. Reclassification of Functions Prohibited. — There shall be 
no evasion of this Code by reclassification of the function of em- 
ployees. An employee shall not be included in any of the exceptions 
set forth above unless the identical functions were identically classi- 
fied on June 15, 1933. 

Article V — Productiox and New^ Capacity 

Should it at an,y time appear that the policy of Title I of the 
National Industrial Kecovery Act will not be effectuated in the Indus- 
try because of overproduction, the Fertilizer Recovery Committee 
may submit to the Administrator recommendations for amendments 
to this Code or for such other action as may be appropriate. 

Article VI — Price Provisions 

Section 1. Sales Beloio Cost Prohibited'. — The sale or offer for 
sale by any producer of mixed fertilizer, superphosphate, and/or 
other fertilizer material at a price below his cost except to meet 
existing competition is hereby prohibited. The term " cost " as used 
herein means the cost determined in accordance with uniform meth- 
ods of accounting which shall be prescribed hereunder by the Fer- 
tilizer Recovery Committee with the approval of the National Recov- 
ery Administration. Such cost shall properly define the differences 
in factory, manufacturing, and mixing costs, and costs of distribut- 
ing the product to producers, dealers, agents, and consumers, and 
such differences in cost shall be reflected in the sales price to each of 
these classifications. 

Sec. 2. Open Price Schedules. — a. Within five days after this Code 
becomes effective each producer shall file with the Secretary of The 
National Fertilizer Association: 

1. A statement showing in what zones said producer intends to 
sell mixed fertilizer, superphosphate, and/or other fertilizer mate- 
rial; 

2. A schedule by zones of the prices then in effect or to be charged 
for all grades or kinds of mixed fertilizer, superphosphate, and/or 
other fertilizer material sold or offered for sale to dealers, agents, 
or consumers by such producer, together with the terms and condi- 
tions applicable thereto; and, 

3. Shall mail or deliver true copies of such schedule to his com- 
petitors in the zones where such producer does business. 



128 

b. If the original schedule so filed by any producer represents any 
change in his then existing prices, terms, or conditions, it shall 
not become effective until the expiration of 48 hours after it is filed. 
After the original schedule is filed, no mixed fertilizer, superphos- 
phate, and/or other fertilizer material shall be sold or offered for 
sale by such producer at a price or on terms or conditions other 
than as specified in said schedule or in a new schedule that has 
become effective pursuant to the provisions of this Section. 

c. No new schedule advancing or reducing any price or changing 
the terms or conditions shall be deemed to have become effective 
hereunder until a date and hour ten days after it has been filed 
with the Secretary of The National Fertilizer Association and unless 
simultaneously with such filing true copies thereof have been mailed 
or delivered hy such producer to other producers in the zones where 
the producer who files the schedule is doing business, except that 
any such schedule filed to meet a new or changed schedule filed by 
a competitor may become effective on the same date and hour that 
the competitor's schedule becomes effective if a copy thereof is 
filed with the Secretary of The National Fertilizer Association and 
copies have been mailed or delivered to other producers in the same 
zones at least 48 hours before such effective date and hour. Any 
original, new, or changed schedule when filed shall be open to 
inspection by any producer. 

d. Upon receipt from any producer of any original or new sched- 
ule representing a change in prices, terms, or conditions, the Secre- 
tary of The National Fertilizer Association shall immediately mail 
to such producer and to other producers in the zones to which such 
schedule relates a notice of the date and hour of filing of such 
schedule and when it becomes effective. 

e. There shall be attached to each schedule filed hereunder a state- 
ment specifying the changes made therein from the last preceding 
schedule. The original schedule of each producer filed hereunder 
shall be numbered " one " and all subsequent schedules or changes 
in schedules shall be numbered serially in accordance with a uniform 
plan of numbering prescribed by The National Fertilizer Association. 

Article VII — Marketing Provisions 

Section 1. Reduction in Nuniber of Grades of Mixed Fertilizer. — 
In order to eliminate waste and reduce the cost of manufacture, 
bearing in mind the economic interest of the farmer, a list of grades 
suitable to meet the agricultural needs of each State or of each zone, 
as the case may be, may be established by the producers in such zone 
or State, acting through a zone committee, in cooperation with 
agronomists and other Federal and State agricultural officials, sub- 
ject to the approval of the National Recovery Administration. 
After such grades have been established for such State or zone, the 
sale or offer for sale therein of mixed fertilizer not conforming to 
the grades so established shall be considered an unfair trade prac- 
tice, provided that the sale of special formulas or special ingredients 
m standard formulas may be made to satisfy bona fide orders from 
customers if adequate additional charge is made for mixing costs as 
determined for the particular plant under the uniform accounting 



129 

methods prescribed in Article VI plus the extra cost of special 
materials used; and provided that this shall not prevent any pro- 
ducer from selling or ottering for sale two extra grades for lawns 
and gardens in various-sized packages not to exceed 100 pounds a 
package. 

Sec. 2. Sales ThroiK/h (^ODinilsiiloh, TratHding Salesmen Pro- 
luhited. — No traveling salesman shall be employed on a conmiission 
basis for the sale of mixed fertilizer, superphosi)hate, and/or other 
fertilizer material. Such sales shall be made only through regular, 
legitimate, salaried salesmen working under the control of the pro- 
ducer. This section shall not a})ply to the Stat€ of Florida. 

Sec. 3. Distrihution, Through C ooperative Associafions. — a. Any 
arrangement upon sale, consignment, or agency basis between pro- 
ducers and regularly incorporated farmers' organizations engaged in 
the various activities connnon to such organizations and principally 
engaged in a bona fide wholesale business or their divisions or depart- 
ments granting special rates, commissions, or concessions, or the 
division of profits, may be continued, entered into, and performed, 
provided that such sales are not below the producer's price as pro- 
vided in Article VI, Section 1 of this Code, and that it shall be 
obligatory upon such cooperative organizations to maintain the pro- 
ducer's schedule of prices to their dealers and consumers in the areas 
covered. 

b. No provisions of this Code shall be interpreted as preventing 
farmers' cooperative corporations from paying patronage dividends 
as authorized by law. 

Sec. 4. — Sales to Dealer and Consumer Through Brokers Pro- 
hibited. — The sale by the ])roducer of mixed fertilizer and/or bagged 
superphos])hate to the dealer or consumer through brokers is hereby 
prohibited. 

Sec. 5. Uniform Contracts. — Subject to the approval of the Na- 
tional Recover}^ Administration, the Fertilizer Recovery Committee 
is authorized to ])repare and prescribe, according to appropriate 
zones established by it, uniform forms of contracts for use in the 
sale by producers of mixed fertilizer, superphosphate, and/or other 
fertilizer material. After such forms have been so prescribed for 
any zone as to any type of transaction the sale by any producer in 
such zone of mixed fertilizer, superphosphate, and/or other fer- 
tilizer material under any form of contract for such type of trans- 
action other than the form so prescribed is hereby prohibited. 

Sec. 6. Investigation of Lmports. — The Fertilizer Recovery Com- 
mittee is authorized to investigate or cause to be investigated and to 
report to the National Recovery Administration in behalf of the Fer- 
tilizer Industry the facts as to the importation into the United States 
and Puerto Rico of mixed fertilizer, superphosphate, and/or other 
fertilizer material in substantial quantities or increasing ratio to 
domestic prcxluction and on such terms or under such conditions as to 
render ineffective or seriously to endanger the maintenance of this 
Code. 

Sec. 7. Methods of Quoting Prices., Methods of Distrihution.^ and 
Methods of Delivery.— The producers in each zone, acting in accord- 
ance with procedure established by the Fertilizer Recovery Commit- 
tee and subject to its approval, are authorized to prepare uniform 



130 

rules, not inconsistent with any provision in this Code, governing 
the methods of quoting prices, methods of distribution, and methods 
of delivery, including trucking allowances, to be used in the sale of 
mixed fertilizer, superphosphate, and/or other fertilizer material in 
such zone or subdivision thereof. Such rules, when so prepared and 
approved by the Fertilizer Recovery Committee, shall be submitted 
to the National Recovery Administration, and when approved by it 
shall be binding upon all producers selling said products in such zone 
or subdivision thereof. 

Sec. 8. Exemptions from Marketing Provisions. — a. In view of 
the peculiar marketing conditions existing in zone 11a, it is ex- 
empted from Section 2 of Article VII, Marketing Provisions, of 
this Code. 

b. The States of Idaho, Utah, Montana, Colorado, Wyoming, and 
Nebraska are exempt from all regulatory rules pertaining to sales. 

Article YIII — Unfair Practices Prohibited 

The following shall be deemed to be unfair competition within 
the meaning of the National Industrial Recovery Act and are hereby 
prohibited : 

Section 1. The defamation of a competitor by falsely imputing 
to such competitor dishonorable conduct, inability to perform con- 
tracts, questionable credit standing, or by other false representations, 
or the false disparagement of the grade or quality of his goods, with 
the tendency and Capacity to mislead or deceive purchasers or 
prospective purchasers. 

Sec. 2. The payment or allowance, except as required b}^ law, of 
rebates, refunds, or unearned commissions or discounts, or of claims 
known to be false or unjustified, whether in the form of money or 
otherwise, or extending to certain purchasers special services or 
privileges not extended to all purchasers under like terms and 
conditions. 

Sec. 3. The payment to any person who is not a dealer or agent, 
as defined herein, in connection with the sale of any mixed fertilizer, 
superphosphate, and/or other fertilizer material of any compensa- 
tion or allowance to which a dealer or agent is entitled. 

Sec. 4. Withholding from or inserting in any invoice a statement 
which makes the invoice false regarding the whole or any part of 
the transaction represented on the face thereof. 

Sec. 5. Providing transportation without adequate charge for it, 
or reimbursing, the dealer, agent, purchaser, or consignee for the 
costs of transportation if reimbursement is not provided for in the 
producer's price list. 

Sec. 6. The operation or use by a producer of any warehouse owned 
or controlled by such producer, or of any warehouse or warehouse 
space leased by him for the storage of mixed fertilizer, superphos- 
phate, and/or other fertilizer material, in such way or under such 
circumstances as to result in the granting of rebates, or special 
allowances from the contract price of any mixed fertilizer, super- 
phosphate, and/or other fertilizer material sold or offered for sale 
by such producer, or the making by any producer in connection with 
the sale of mixed fertilizer, superphosphate, and/or other fertilizer 



131 

material of an allowance for warehousing not included in his price 
schedule. 

Sec. 7. Selling or consigning chemicals and materials with special 
concessions or at reduced prices, given to induce the purchase of 
mixed fertilizer, superphosphate, and/or other fertilizer material. 

Sec. 8. Failure to enforce in good faith the terms of contracts 
previously made for the sale of mixed fertilizer, superphosphate, 
and/or other fertilizer material, as for example : 

a. Selling on terms that require the payment of sight draft on 
presentation of bill of lading (S.D.B.L.) and then waiving the ob- 
ligation to pay cash before documents or goods are delivered, thus 
deferring the payment of the cash to some future date. 

b. Selling and delivering goods on time, consignment, or open 
bill of lading terms on S.D.BX. price, or waiving earned interest. 

Sec. 9. Furnishing special containers, preparing special formulas 
for individual buyers or consignees, or using special ingredients in 
standard formulas, without adequate charge for the cost of such 
containers, formulas, or special ingredients, as an inducement to the 
making of a contract and/or sale. 

Sec. 10. Making special allowance to buyers or consignees under 
the guise of advertising expense, or giving any other form of 
gratuity. 

Sec. 11. Adopting selling methods that promote secret rebates and 
concessions, such as: 

a. Employing a buyer or consignee or his agent or anyone em- 
ployed by or connected with a buyer or consignee with the purpose, 
design, and effect of influencing the business of such customer. 

b. Carrying on books by seller or consignee as delinquent balances 
due by solvent customer with no intention of requiring ultimate 
payment. 

Sec. 12. Enabling the purchaser or consignee to obtain mixed fer- 
tilizer, superphosphate, and/or other fertilizer material apparently 
on cash terms, but in fact on credit extended to him by or through 
the producer, as, for example : 

a. A transaction covered by a sight draft and bill of lading under 
which the purchaser or consignee is made to appear as honoring 
documents upon presentation by payment with his own funds, when 
in fact the cash involved was obtained in whole or in part upon a ne- 
gotiable instrument (usually discounted at a bank) bearing the en- 
dorsement of the producer ; or 

b. A transaction by which the producer, although he does not actu- 
ally endorse the obligation, renders himself legally or morally re- 
sponsible for its payment if the purchaser or consignee shall fail to 
meet his obligation to the bank at maturity. 

Sec. 13. Refunding to the buyer or consignee, either directly or 
indirectly, any part of the purchase price on account of goods ac- 
cepted and/or settled for by the buyer or consignee under the terms 
of the contract. This practice is commonly referred to as " retro- 
active settlement." 

Sec. 14. The guaranteeing of prices against decline to dealers, 
agents, or consumers. 

Sec. 15. Inducing the breach of any contract for the sale of mixed 
fertilizer, superphosphate, and/or other fertilizer material by offer- 



132 

ing a lower price to the purchaser under such contract, or by any 
other means. 

Sec. 16. The false marking or branding of any product of the in- 
dustry 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 preparation. 

Sec. 17. The making or causing or permitting to be made or pub- 
lished of any false, untrue, or deceptive statement by way of adver- 
tisement or otherwise concerning the grade, quality, quantity, sub- 
stance, 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. 

Sec. 18. Furnishing of mixed fertilizer, superphosphate, and/or 
other fertilizer material by a producer to any consumer with the 
understanding that pajmient therefor shall be made by turning over 
to such producer a quantity, fixed in advance and without reference 
to the market price, of the crop produced by the use of such fertilizer. 

Article IX — Reports and Statistics 

Section 1. The Fertilizer Recovery Committee -is authorized to 
prescribe, subject to the approval of the Administrator, regulations 
requiring the submission by producers at such reasonable times as 
it may designate, of reports containing information necessary for 
the administration and enforcement of this Code, including wages, 
hours of labor, other conditions of labor, prices, marketing practices, 
and such other items as may be required. Such reports shall be 
submitted only to the executive officer of The National Fertilizer 
Association. Except as otherwise provided in this Code, all reports 
submitted hereunder shall be treated as confidential and shall be 
open to inspection only by the persons employed by the Fertilizer 
Recovery Committee to administer this Code and by the authorized 
officials of the National Recovery Administration. 

Article X — General Provisions 

Section 1. No provision in this Code shall be interpreted or ap- 
plied in such a manner as to : 

a. Promote monopolies or monopolistic practices; 

b. Permit or encourage unfair competition; 

c. Eliminate or oppress small enterprises; or 

d. Discriminate against small enterprises. 

Sec. 2. 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 VO of the National In- 
dustrial 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, but without limitation, 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. 3. Nothing in this Code shall be deemed to constitute the 
participants therein partners for any purpose. 



133 

Sec. 4. Within each State, members of the Industry shall comply 
with any laws of such State imj)osing more stringent requirements, 
regulating the age of employees, wages, hours of work, or health, 
fire, general working conditions, or standards of commodity. 

Article XI — Fees and Expenses 

Each producer subject to the jurisdiction of this Code and ac- 
cepting the benefits of the activities of the Code Authority hereunder, 
shall pay to the Code Authority his proportionate share of the 
amounts necessary to pay the cost of assembling, analyzing, and 
publication of such reports and data, and of the maintenance of the 
said Code Authority and its activities, as the Code Authority, with 
the approval of the Administrator, may prescribe. 

Article XII — Amendments 

The right is hereby reserved to alter, amend, or supplement this 
Code at any time by a majority vote of the Fertilizer Recovery Com- 
mittee, subject to the approval of the President of the United States. 

Article XIII — Effective Date 

This Code shall become eifective on the tenth day after its approval 
by the President of the United States and shall terminate on June 16, 
1935, or sooner if the President shall by proclamation or the Con- 
gress shall by joint resolution declare that the emergency recognized 
by Section 1 of the National Industrial Recovery Act has ended. 

Approved Code No. 67. 
Registry No. 610/1/01. 



SCHEDULE A 

List of Zones Established for Administration of Code for the Febtiuzeb 

Industry 



Zone No. 1: 
Maine 

New Hampshire 
Vermont 
Massachusetts 
Rhode Island 
Connecticut 
Zone No. 2: 
New York 
Pennsylvania 
New Jersey 
Zone No. 8: 
Maryland 
Delaware 

District of Columbia 
Virjrlnia (north of James River 
including Accomac and Nor- 
thampton counties) 
West Virginia (B. & O. Section) 
Zone No. 4-' 

Virginia (south of James River 

including Richmond) 
West Virginia (C. & O. Section) 
North Carolina 
Zone No. 5: South Carolina 
Zone No. 6: 
Georgia 

Florida (starting with the eastern 
boundaries of Columbia), Su- 
wanee, Lafayette, and Taylor 
counties and extending west to 
the Apalachicola River 
Zone No. 7: Florida (east and south of 
Suwanee), Columbia, Lafayette, and 
Taylor counties 
Zone No. S.- 
Tennessee 
Alabama 
Mississippi 



Florida (west of the Apalachicola 
River) 

Louisiana (east of the Mississippi 
River) 
Zone No. 9: 

Arkansas 

Louisiana (west of Mississippi 
River ) 

Texas 

Oklahoma 

New Mexico 
Zone No. 10: 

Michigan 

Ohio 

Indiana 

Kentucky 

Illinois 

Wisconsin 

Minnesota 

Iowa 

Missouri 

North Dakota 

South Dakota 

Nebraska 

Kansas 

Montana 

Wyoming 

Colorado 
Zone No. 11a: 

California 

Nevada 

Utah 

Arizona 
Zone No. Hi: 

Washington 

Oregon 

Idaho 
Zone No. Ho: Hawaii 
Zone No. 12: Puerto Rico 



(134) 



SCHEDULE B 

FeKTILIZER KlOCOVEUY CoMMin'KE 

John J, Watson, International Agricultural Corporation, Isew York City, 

Cliairuian 
Charles J. Brand, The National Fertilizer Association, Washington, D.C., 

Secretary 

Zone No. 1 

E. H. Jones, Apothecaries Hall Co., Waterbury, Conn. 

Zone No. 2 

Horace Bowker, The American Agricultural Chemical Co.. New York, N.Y. 
T. E. Milliman, Cooperative G. L. F. Mills, Bufealo, N.Y. 
E. H. Westlake, Tennessee Corp., New I'^ork, N.Y. 

Zone No. 3 

B. H. Brewster, jr., The Baugh & Sons Co., Baltimore, M.l. 

C. F. Hockley, The Davison Chemical Co., Baltimore, Md. 
W. W. Price, Smyrna, Del. 

W. E. Valliant, Valliant Fertilizer Co., Baltimore, Md. 

Zone No. ^ 

C. F, Burroughs, F. S. Royster Guano Co., Norfolk, Va. 

G. A. Holderness, Virginia-Carolina Chemical Corp., Richmond, Va. 

Oscar F, Smith, Smith-Douglass Co., Norfolk, Va. 

Thomas H. Wright, Acme Manufacturing Co., Wilmington, N.C. 

Zone No. 5 

J. Ross Hanahan, Planters Fertilizer & Phosphate Co., Charleston. S.C. 
A. F. Pringle, Merchants Fertilizer Co., Charleston, S.C. 
J. D. Prothro, Aiken Fertilizer Co., Aiken, S.C. 

Zone No. 6 

H. B. Baylor, International Agricultural Corp.. Atlanta, Ga. 

J. E. Sanford, Armour Fertilizer Works, Atlanta, Ga. 

A. D. Strobhar, Southern Fertilizer & Chemical Co., Savannah, Ga. 

Zone No. 7 

C. T. Melvin, The Gulf Fertilizer Co., Tampa, Fla. 

R. B. Trueman, Trueman Fertilizer Co., Jacksonville, Fla. 

Zone No. 8 

E. A. Brandis, Standard Chemical Co., Troy, Ala. 

J. W. Dean, Knoxville Fertilizer Co., Knoxville. Tenn. 

C. D. Jordan, The Southern Cotton Oil Co., New Orleans, La. 

Zone No. 9 

P. H. Manire, Marshall Cotton Oil Co., Marshall, Texas 

C. D. Shallenberger, Shreveport Fertilizer Works. Shrevepnrt. La. 

(135) 



136 

Zone No. 10 
L. W. Rowell, Swift & Co. Chicago, 111. 

Zmw No. 11a 
Weller Noble, The Pacific Guano «& Fertilizer Co., Berkeley. Calif. 

Zone No. lib 

George R. Clapp, Swift & Co., North Portland, Oregon 

Administrative Committee 

John J. Watson C. T. Melvin 

Charles J. Brand Oscar F. Smith 

Horace Bowker A. D. Strobhar 

B. H. Brewster, Jr. W. E. Valliant 

O 



I 



Approved Code No. 68 
CODE OF FAIR COMPETITION 

FOR THE 

ROAD MACHINERY MANUFACTURING INDUSTRY 

As Approved on October 31, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An tq)plication luiviiio- 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 Koad IMachinery Manufacturing Indus- 
try, and hearings having been lield thereon and the Administrator 
having rendered his report containing an analysis of the said code 
thereto, and the Administi'ator 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. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Achninistrator. 

The White House, 

Octoher 31, 1033. 

29934 296-] (58^—84 ( 137 ) 



October 23, 1^33. 
The President, 

The White House. I 

Sir : This is a report of the hearino; on the Code of Fair Competi- 
tion for the Road Machineiy Manufacturing Industry in the United 
States, conducted in Washington on September 12, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

Provisions on Hours and Wages 

The maximum hours provided by the Code for factory employees 
will be 40 per week and 8 per day. When production demands it^ 
this working time may be increased to 44 hours per week in not more 
than 8 weeks in any '6-months' period, the average hours to be not 
more than 40 per week. Time and one half will be paid to employees 
working in excess of 8 hours per day or 40 hours per week. 

Those employed as preparation, care, and maintenance workers or 
as stock or shipping clerks will be given a tolerance of 10 percent 
over the maximum hours prescribed, the average to be not more than 
40 hours per week in any G-months' period. The above limitations 
in hours do not apply to" supervisory employees receiving more than 
$35.00 per week, service-parts foremen, field service men, nor to 
emergency maintenance or repair workers, the last class being paid 
time and one half for all hours Avorked in excess of 8 per day or 40 
per week. 

The minimum wage for factory workers will be 40 cents per hour. 
No distinction in wage rates will be made between male and female 
employees. xVdjustments of Avage rates above the minimum provided 
will be made and Avill be reported to the Administrator. 

A maximum of 40 hours per Aveek is provided for employees en- 
gaged in accounting, clerical, serA^ce, sales, and delivery Avork. Their 
minimum Avage Avill be in accordance Avith the President's Reemploy- 
ment Agreement. Salaries noAV higher than the above minimums 
Avill not be reduced because of change in hours proAaded in the Code. 
Office boys and messengers Avill receive not less than 80% of the 
minimum Avage and the number of office boys, messengers, and ap- 
prentices Avill be not more than 5 percent of the total number of 
employees of any employer. 

Child Labor 

The minimum age provided is 16 years, but in hazardous occupa- 
tions this age limit is raised to 18 years. 

(138) 



139 

Economic Effkcit of tiif ("odk 

This important Industry manufactures j:^raders, road rollers, and 
other machines for constructing or maintaining roads and highways. 
Its pi'incipal customers are the Government of the United States, 
the individual States and their political subdivisions, and the con- 
tractors who construct and maintain roads and highways. 

There are twenty-one companies in the Industry and approxi- 
mately 3,000 employees who are engaged in manufacturing work. 
While sales in 1932 ($7,800,000) were only 35 percent of those in 
1929. employees in 1932 numbered approximately 2,400, or about 
65 percent of the number in 1929. Only by increased business, which 
will depend largely upon highway construction activities, can this 
Industry put a large number of employees back to work. 

It is estimated by the Industr}^ that the hours and wages provided 
in the Code will increase employment ai)i3roximately 20 percent, and 
that the average income per employee will be increased approximately 
20 percent over that in effect before the President's Reemployment 
Agreement. 

In arriving at the terms expressed in the Code, it has shown its 
cooperation in complying with the spirit of the Act. 

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 
Road Machinery Industry ; and that 

(c) The Code as reconnnended is not designed to promote mo- 
nopolies or to eliminate or oppress small enterprises and will not 
operate to discriminate against them, and Avill tend to effectuate the 
policy of Title I of the National Industrial Recoveiy Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully, 

Hugh S. Johnson, 

A dminis trato r. 



CODE OF FAIR COMPETITION 

FOR THE 

ROAD MACHINERY MANUFACTURING INDUSTRY 

Article I — Pi kpose 

The purpose of this Code is to reduce and relieve unemployment 
and to prevent unfair practices and competition destructive of the 
interests of the public, employees, and employers, and to effectuate 
the other purposes of the National Industrial Recover}^ Act. 

Article II — Definitions 

Section 1. The term " Road Machinery Manufacturing Industry " 
(or " Industr}' ") as used herein shall mean the manufacture and 
the sale by the manufacturer or by selling affiliates of manufacturers, 
of blade graders, motor graders, elevating graders, road rollers, and 
other machines for constructing or maintaining roads or liighways, 
not specifically included in other Codes. 

Sec. 2. The term " person '' as used herein includes, but is not 
limited to. any individual, partnership, association, or corporation in 
the Industry. 

Sec. 3. The word "Association "" as used herein refers to the Road 
Machinery Manufacturers' Association. 

Sec. 4. The term " employee " as used herein includes any person 
engaged in any phase of the Industry irrespective of the method of 
|3a3'ment of his compensation. 

Sec. 5. The term '' employer "' as used herein includes anyone 
for whose benefit such employee is so engaged. 

Sec. 6. The term " member of the Industry " as used herein shall 
mean any person engaged in the Road Machinei*}' Manufacturing- 
Industry. 

Sec. T. The term " apprentice " as used herein shall mean a 
person, usually a minor, indentured to serve an employer for a 
specified term of years in order to learn a trade, art, or profession. 

Sec. 8. The term " member of the Code " as used herein includes 
any member of the Industry who shall expressly signify assent to 
this Code. 

Sec. 9. The term "Administrator " as used herein means the Ad- 
ministrator of the National Industrial Recovery Act. 

Sec. 10. The term " President " as used herein means the Presi- 
dent of the United States. 

Sec. 11. The term "effective date'' as used herein shall mean the 
third Monday after this Code has been approved by the President. 

(140) 



141 

ArTICLK III J*AI{TICII'Ari(iX 

Skction 1. Mcniborsliip in the Assocititioii shall be open to all 
members of the Industry and no ine(|iiitable restrictions shall be ini- 
])Osed on admission to membership. 

Sec. 2. Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Coordinating Agency 
hereinafter described and to participate in the selection of the mem- 
l.ei's thei'eof by assenting to and complying with the requirements 
id" this Code and sustaining their reasonable share of the expenses 
iii' its a(hninist ration. The I'easonable share of the expenses of ad- 
uiinistration sliall be determined by the Coordinating Agency, sub- 
ject to review by the Administrator, on the basis of volume of busi- 
ness and/or such other factors as may he deemed equitable to be taken 
into consideration. 

AiiTK i.K IV — Administration 

Sec'J'iox i. (a) The members of the Executive Committee of the 
Association togetiier with one member of the Industry who is not a 
member of the Association, if the non-members .so desire, and one 
or more representatives who may be appointed by the President 
(who shall have no vote), are constituted a Coordinating Agency 
for the Industry, which Coordinating Agency shall cooperate with 
the Administrator in the administration of this Code, with the 
following powers : 

(b) 1\> collect from members of the Industry all datii and .statis- 
tics required by the President or the Administrator or his or their 
agent or agents undei' the provisions of the National Industrial 
Recovery Act: also such data and statistics as may be deemed neces- 
sary by the Coordinating Agency, subject to the approval of the 
Administrator; provided, however, that such information shall be 
confidential except insofar as disclosure may be necessary for the 
effective administration of this Code. 

(c) In addition to information required to be submitted to the 
Coordinating Agency, there shall be furnished to Government 
Agencies such statistical information as the Administrator may deem 
necessary for the purpose recited in Section 3 (a) of the National 
Industrial Recovery Act. 

(d) To re])resent the Industry in conferring with the President or 
his agents with respect to the Administration of this Code and in 
respect of the National Indu.strial Recovery Act and any regulation 
issued thereunder. 

(e) To hear and investigate complaints and attempts to adjust 
the same in accordance with law. 

(f) To coordinate the administration of this Code with such 
Codes, if any, as may be adopted by any subdivision of this Industry 
or any related Industry, with a view to providing joint and har- 
UKmious action on all matters of common interest; all with the ap- 
proval of the Administrator. 

Sec. 2. Any proposals for amendments to this Code or supple- 
mental agreements with respect to wages, hours, or trade practices, 
or any other matters shall be first submitted to the Coordinating 
Agency which shall consider the same and confer with members 
of the Industry afl'ected therebv to the extent the Coordinating 



142 

Agency deems advisable. The Coordinating Agency, as represent- 
ing the entire Industry, shall have no power to approve or recom- 
mend any amendments or supplemental agreements, but may arrange 
lor a hearing before the President or his agents on any proposal 
which a substantial proportion of the Industry, or the division 
thereof affected by the proposal, desires to present, and shall notify 
all members of the Industry of the time and place of the hearing. 

Article V — Hours or Labor and Rates or Pay 

Section 1. No member of the Industry shall employ in the In- 
dustry any person under the age of 16 years; provided, however, 
that where a State law provides a higher minimum age no person 
below the age specified by such State law shall be employed within 
the State. No person under the age of 18 years shall be employed in 
ai)y hazardous occupation. 

Sec. 2. (a) On and after the effective date of this Code no em- 
ployer shall work any accounting, clerical, service, sales, express, 
or delivery emploj^ees in the Industry more than 40 hours a week 
on a semi-yearly average or more than 44 hours in any one week. 

(b) On and after the effective date of this Code all employees 
mentioned in Paragraph (a) of this Section shall be paid at a rate 
of not less than $15.00 per week in any city of over .500,000 popu- 
lation; and at a rate of not less than $14.50 per week in any city 
of between 250,000 and 500,000 population ; and at a rate of not less 
than $14.00 per week in any city of between 2,500 and 250,000 
population : and in towns of less than 2,500 population all wages 
of such employees shall be increased by not less than 20 percent, 
provided that this shall not require wages in excess of $12.00 per 
week. Where a State law provides a higher minimum wage, no 
person employed within the State shall be paid a wage below that 
required by such State law. The salaries of all employees receiv- 
ing more than the minimum herein provided shall be equitably 
adjusted, if this has not already been done. 

(c) No emploj^ee of the classes mentioned in Paragraph (a) of 
this Section, now receiving compensation at rate in excess of the 
minimum jn-ovided in Paragraph (b) of this Section, shall have their 
compensation reduced on account of any reduction in the weekly 
hours of employment made to conform with the requirements of 
Paragraph (a) of this Section. 

(d) The provisions of Paragraph (a) of this Section do not apply 
to persons in a managerial, executive, or supervisory capacity receiv- 
ing more than $35.00 per week nor to outside salesmen, collectors, 
field-service men, and repair foremen. 

Sec. 3. (a) On and after the effective date of this Code, no em- 
j)loyee in the Industry, except as hereinabove or hereinafter provided, 
shall be employed in excess of forty (40) hours in any one week nor 
in excess of eight (8) hours in any one day; provided, however, that 
during any period in which a concentrated demand upon any divi- 
sion of the Industry shall place an unusual and temporary burden 
for production upon its facilities, an emploj'ee of such division may 
be permitted to work not more than forty-four (44) hours per week 
in not more than eight (8) weeks of any six (6) months' period, 
provided, liowever. that the average shall not be more than (40) 
hours per week over a six (G) months' period. 



143 

Where in any case an employee is worked in excess of eight (8) 
hours in any one chiy, or forty (40) hours in any one week, time 
.and one halt" shall be paid for the excess liours so worked. 

As to employees engaged in the [)reparation, care, and mainte- 
nance of plant, machinery, and production facilities, and stock and 
shipping clerks there shall be a tolerance of 10%, provided that such 
tolerance shall not result in oUch eni[d()yee working in excess of an 
average of forty (40) hours per week in any six (6) months' period. 

The limitations as to hours of laI)or shall not apply to j)ersons in a 
supervisory capacity, receiving more than $35.00 per week, ser\ice 
parts foremen, field service men, nor to employees engaged in 
emergency maintenance or repair work, provided that employee- 
engaged in emergency maintenance or r(>pair work shall be paid 
time and one lialf for all hours worked in excess of eight (8) hours 
in any one day or forty (40) hours in any one week; nor to watch- 
men, provided, however, that watchmen shall not be permitted to 
work more than six (6) days in any seven (7) day period. 

(b) On and after the effective date of this Code, the minimum 
wage that shall be paid by employers to unj of their employees 
■other than those covered by Section 2 of Article V and Section 3 (d) 
und (e) of Article V, shall be 40 cents per hour. This paragraph 
establishes a guaranteed minimum rate of pay regardless of Avhether 
the employee is compensated on the basis of a time rate or a piece- 
work performance, or otherwise, provided, however, that where a 
State law provides a higher minimum wage, no person employed 
within the State shall be paid a wage below that required by such 
State law. The salaries of all employees receiving more than the 
minimum herein provided shall be equitably adjusted. 

(c) The wage differentials for all operations shall be equitably 
adjusted (unless such readjustment has been made since July 1, 1933) 
and in no case shall they be decreased. Every member of the Iii- 
-dustry shall report on such readjustments to the Administrator upon 
his request. 

(d) The foregoing provisions i-elating to rates of wages shall not 
apply to apprentices, office boys, or messengers not exceeding b^/c 
in number of employees of any emploj^er or to persons in a sujjer- 
visor}^ capacity, or to those receiving more than $35.00 per week: 
provided, that all existing and future apprentice contracts shall be 
submitted to the Coordinating Agency and shall be subject to the 
approval of the Administrator. 

(e) Office boys and messengers s]iecified in Paragraph (d) above 
shall be paid not less than 80% of the minimum wage specified in 
Section 2 (b) of this Article V. 

(f ) No distinction in rates shall be made between male and female 
enijiloyeos where the same class of work is performed, regardless 
of whether compensation is calculated on an hourly, weekly, monthly, 
or piece-work basis. 

Sfx'. 4. The maximum hours for employees hereinbefore prescribed 
shall mark the total number of hours which ma}^ be worked by each 
such employee whether he be employed by one or more employers. 

Sec. 5. No employee shall be classified in any one of the foregoing 
exempted classes unless he performs functions identical with those 
performed by employees thus classified on June 16, 1933. 



144 

Sec. 6. Population shall be governed by the United States Census 
of 1930. 

Article VI — Stat: stus 

Not later than the 25th day of each month each member of the 
Industry shall report to the Coordinating Agency the classified unit 
sales and the dollar volume sales, at list price, of the preceding 
month, of prime products of the Industry (exclusive of parts sales 
therefor). A composite report of such statistical information shall 
be available to all members of the Industry, but the individual reports 
of the members reporting shall not be divulged except insofar as 
such disclosure may be necessary for tlie effective achninistration of 
this Code. 

Article VII — Tit.^DE Pkactu es 

Sectiox 1. (a) It shall be an unfair method of competition for 
any member of the Industry to give any concessions directly or 
indirectly, by any means, from its list of prices, delivery points, 
terms and discounts, so long as the same remain in force, and no 
change shall become etfective in advance of filing the same with the 
Coordinating Agency Avhich shall make such information available 
to the members of the Industry making similar products. Within 
ten days after the etfective date of this Code, each member of the 
Industry shall file with the Coordinating Agency a complete list 
of its then existing delivered prices, delivery points, terms and trade 
discounts, and shall also file all changes therein as and when made. 
Such changes in delivered prices, delivery i)oints, terms and dis- 
counts shall be filed at least ten days before becoming effective. The 
operation of the foregoing shall be at all times subject to the 
approval of the Administrator. 

(b) The longest period for full payment (except by the United 
States Government, or by any State, or subdivision thereof) shall 
not exceed two (2) years from date of delivery, with a minimum 
«»f G% intere.st. No imderstanding for renewal or extension of any 
payment shall be made prior to the sale of the merchandise to the 
purchaser. 

Sec. 2. (a) It shall be an unfair metlKjd of comj^etition to sell below 
cost. Cost shall include labor, materials, all reasonable overheads 
and reasonable selling, collection, distribution, and delivery expenses. 
Until January 1935. or until changed by the Coordinating Agency, 
subject to the approval of the Administrator, in determining over- 
heads, selling, collection, and distribution expenses, the percentage 
applicable to the year l92G may be used if lower tlian current 
figures. 

(b) Any member of the Industry wlio wishes to sell a product 
at less than cost (either generally or in certain territory), (a) to 
introduce a i)roduct new to its line, or (b) so that its line shall be 
sufficiently varied to adequately comi^ete with other members of the 
Industry, or (c) so that the line of its dealers shall be sufficiently 
comi)lete to adequately compete with other dealers, may do so pro- 
vided (1) that it may not sell any ])roduct for a less price or on 
more liberal terms than the price "and terms, in tiie same territory 
of its competitor who sells for the lowest ])rice wliich is not less 



145 

than cost; (2) that such member of the Industry first notifies the 
Coordinating Agency- of the product and territory involved. 

(c) Discontinued or noncurrcnt linoe may be sold at sucli prices as 
are necessary to move this stock into buyers' hands. A list showing 
the quantity of all such stock and the prices at which it will be 
offered shall be presented to the Coordinating Agency at least ten 
days before it is oftei-ed to the public. Xon-current lines shall be >(> 
designated Avhen offered for sale. 

Sec. 3. The preceding provisions of this Article do not apply to 
second-hand merchandise except that full payment shall be required 
within tw^o years from date of delivery to consumer. 

Sec. 4. There shall be no' rental of current ncAV equipment except 
on a lease contract, which, within two years, returns the regular 
j-etail ])rice plus a minimum of six (G) percent interest. The opera- 
tion of this Section 4 shall at all times be subject to the approval of 
the Administrator. 

Sec. 5. No second-hand or old equipment shall be taken in trade 
as part payment for new equipment at an allowance in excess of its 
then resale value, and the Coordinating Agency, subject to the 
approval of the Administrator, shall establish from time to time, 
rules and regulations defining such resale values. 

Sec. 6. No member of the Industry shall jjarticipate in a com- 
petitive demonsti'ation in connection with a call for bids by private 
industry or byihe United States Government or by any State, or sub- 
division thereof, nor, incidental to such call, demonstrate a machine 
of the type required Avithiji the boundaries of such subdivision calling 
for bids. This shall not preclude demonstrating the product in con- 
nection with such sales after taking a bona fide order that fully states 
])urchase price and terms but is qualified by being subject to ])er- 
formanee satisfactory to purchaser, before acceptance. 

Sec. T. a very substantial })ortion of sales to ultimate consiuuers 
are made directly hj members of the Industry and the balances are 
made through dealers. In consequence, i-estriction of members of 
the Industry to fair trade practices, to be effective, must be supple- 
mented by prohibiting indirect evasions of such restrictions on the 
}iart of members of the Industry by operations through dealers. Ac- 
cordingly, it is hereby provided that no member of the Industry shall 
sell any product of the Industry through any dealer luitil such dealer 
agrees to comply Avith the fair trade practices set forth in this xVrticle 
VII, except for Section 2 of said Article, in the resale of such 
product. 

Sec. 8. Nothing in this Article VII shall apply to products ex- 
ported from the United States. 

Sec. 9. Prior to December 31, 1933, no member of the Industry 
shall increase the sale price of his product in the Industry sold after 
the effective date hereof over the price on July 1, 1933, by more than 
is made necessary by actual increases in manufacturing, distribution, 
and material costs, or by taxes or other costs resulting from action 
taken pursuant to the Agricultural Adjustment Act and/or this 
Code since July 1, 1933, and in setting such price increases full 
w^eight shall be given to probable increases in sales volume. In case 
a member of the Industry on July 1, 1933, was selling his product 



i4r> 



at less than actual cost, he may take his cost price of that date as 
the base for such increase in selling price as is permitted by this 
section. 






Article VIII 



I 



As required by Section 7 (a) of the National Industrial Recovery 
Act, it is hereby provided : 

(1) That emploj^ees shall have the right to organize and bargain 
collectivelj^ 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 aiid 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 

(8) That emploj^ers shall comply w^ith the maxinnun liours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President. 

Article IX 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
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 
specifically, but without limitation, to the right of the President to 
cancel or modify his approval of this Code or any conditions im- 
posed by him Ti[)on his approval thereof. 

Article X 

AVhere the costs of executing contracts entered into in the Industry 
prior to the date of approval of this Code are increased as a result of 
the provisions of this Code or any other Code duly approved under 
the Xati(mal Industrial Recovery Act, or where any contract entered 
into by any member of the Industry prior to the date of approval of 
this Code is inconsistent with the provisions of this Code, it is 
equitable and promotive of the purposes of the National Industrial 
Recovery Act that appropriate adjustments of such contracts be 
arrived at by arbitral proceedings or otherwise, and the Coordinating 
Agency is hereby constituted an agency with tlie consent of the 
buyer, to assist in effecting sucli voluntary adjustments. Where the 
performance of orders accepted prior to the effective date of this Code 
IS delayed as a result of the operation of provisions of this Code, it is 
-equitable that appropriate additional time should be allowed for the 
com])letion of such orders. 



147 
Article XI 

No provision in (his Code shall \h imcrpictiMl or ii|)|>lict| in siicji if 
manner as to — 

(1) Promote moiioj)olic's or monctpolistic piacticcs, 

(2) Permit or encoui-aac unfair ('omi)etition, 

(3) Eliminate or opj)ress small enterprises, or 

(4) Discriminate aijainst small enterprises. 

Article XII 

Provisions of this Code other than those leciuired to be included 
by the National Industrial Recovery Act, with tlie ap])roval of the 
President, may be modified or eliminated if it appears that the pub- 
lic needs are not beino- served thei-eby, and as changes in circum- 
stances or experience may indicate. It is contemplated that from, 
time to time sujiplementary provisions to this Code or additional 
Codes will be submitted for the approval of the President, further to 
effectuate the purposes and policies of Title I of the National Indus- 
trial Recovery Act. 

Article XIII 

This Code shall take effect upon the third Monday after its ap- 
proval by the President, and shall be binding upon all members of 
the Industry. 

Approved Code No. 68. 
Registry No. 1329/02. 

O 



Approved Code No. 69 
CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY AND DRESS TRIMMING BRAID AND 
TEXTILE INDUSTRY 

As Approved on October 31, 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 Millinery and Dress Trimming Braid 
and Textile 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 hav- 
ing 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, 

A dtrdnistrator. 

The White House, 

Octoher 31, 1933. 

29935 296-169 34 (149) 



September 29, 1933. 
The PREsroENT, 

The White House. 
Sir : I have the honor to submit and recommend for your approval, 
the Code of Fair Competition for the Millinery and Dress Trim- 
ming Braid and Textile Industry. The code has been approved 
b}^ the Labor Advisor}^ 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 Natibnal Industrial Re- 
covery Act. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
(150) 



CODE T)F FAIR COMPETITION 

FOR TETE 

MILLINERY AND DRESS TRIMMING BRAID AND 
TEXTILE INDUSTRY 

PREAMBLE 

Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Millinery and Dress Trimming Braid and 
Textile Industry, and shall be the standard of fair competition for 
such industry, and shall be binding upon every member thereof. 

Article I — Definitions 

(a) The term "Millinery and Dress Trimming Braid and Tex- 
tile Industry " as used herein includes the manufacture and distri- 
bution by manufacturers, of braids, narrow fabrics, banding, cloths, 
or textile fabrics, made in major portion of unusual synthetic yarns 
and not of wool, silk, cotton, or rayon (or similar yarn made from 
acetate) for the use and consumption of the Millinery and Dress 
Trimming trades, and such branches or subdivisions as may from 
time to time be included under the provisions of this Code. 

(b) The term "employee" as used herein includes any person 
engaged in any branch of the Industry, in any capacity receiving 
compensation for his services, irrespective of the nature or method of 
payment of such compensation. 

(c) The term " employer " as used herein includes anyone by whom 
such employee is compensated or employed. 

(d) The term " member of the Industry " includes anyone engaged 
in the Industry as above defined, either as an employer or on his own 
behalf. 

(e) The terms " President ", "Act", and "Administrator" as used 
herein shall mean, respectively, the President of the United States, 
the National Industrial Recovery Act, and the Administrator of 
said Act. 

(f ) The term "Association " shall mean the Millinery and Dress 
Trimming, Braid, and Textile Association. 

(g) The term " effective date " as used herein means the tenth 
(10th) day after the approval of this Code by the President. 

Article II — Wages 

(a) No employee shall be paid at less than the rate of thirty-five 
cents (350) per hour in New York City, nor at less than the rate of 
thirty-two and a half cents (32^^) per hour elsewhere in the United 
States of America. 

(151) 



152 

(b) This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate, piecework or 
other basis. 

(c) Individual earnings at present above the minimum shall not 
be decreased, but rates of pay in excess of the minimum prescribed 
in paragraph (a) of this Article shall be increased so as to preserve 
the differences in earnings existing on July 1, 1933. 

(d) Female employees performing substantially the same work 
as male employees shall receive the same rates of pay as male em- 
ployees. 

Akticle III — Hours 

(a) No employee shall be permitted to work in excess of forty (40) 
hours in any one (1) week, or eight (8) hours in any twenty-iour 
(24) hour period, except supervisors earning thirty dollars ($30.00) 
a week or over, repair shop crews, engineers, firemen, shipping and 
watching crews. The excepted employees, other than the supervisors, 
working in excess of forty (40) hours shall receive time and a third 
for all overtime. 

(b) Pending action by the Code Authority under the terms of 
Section 3 (e) of the National Industrial Recovery Act, a committee 
shall be designated by the Code Authority to investigate the labor 
reserve problems of the industry with a view to recommending a 
means of meeting this problem. 

(c) 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 circumstances 
shall an employee work or be permitted to work for any one or more 
employers in the industry an aggregate in excess of the prescribed 
number of hours in any single week. 

Article IV — General Labor Provisions 

(a) No person under sixteen (16) years of age shall be employed 
in the industry. 

(b) 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 proteetion. 

(c) 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. 

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

(e) Within a State this Code shall not supersede any laws of such 
State imposing more stringent requirements regulating the ages of 
employees, wages, hours of work, or health, fire, or general working 
conditions than under this Code. 



153 

(f) Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the 
Act. 

(g) Each em^^loyer shall post in conspicuous places on his premises 
such copies of this Code or portions thereof as required by the Code 
Authority. 

Article V — Reports 

With a view to keeping the Administrator informed as to the 
observance of this Code, and as to whether the industry is taking 
appropriate steps to eifect the purposes of Title I of the National 
Industrial Recovery Act, each member of the industry shall furnish 
duly certified reports in substance as follows, and in such form as 
may hereafter be provided and at such times as the Code Authority, 
with the approval of the Administrator, may require. 

(1) Wages and Hours of Labor. — Returns every four (4) weeks 
showing actual hours worked by the various occupational groups of 
employees and weekly earnings; 

(2) Reports of Production., Sales., Stock., and Orders. — Returns 
showing production in terms of commonly used units, i.e., gross 
yards or pounds, or pieces; stock on hand, both sold and unsold, 
m the same t«rms, and unfilled orders stated also in the same terms. 
These returns are to be confined to staple construction of millinery 
textiles. 

(3) The Association is constituted the agency for collecting such 
reports, which shall be kept confidential by such Association, and 
only made available as the Administrator may direct. 

(4) In addition to the information required to be submitted to 
the Association, 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 Act. 

Article VI — Administration 

Further to effectuate the policies of the Act, a Code Authority is 
hereby constituted to cooperate with the Administrator in the 
administration of this Code. 

(a) Orgamizatio-n and constitution of the Code Authority. — (1) 
The Code Authority shall consist of nve (5) individuals or such 
other number as may be provided from time to time by the Adminis- 
trator, to be selected as hereinafter set forth. The Administrator, in 
his discretion, may appoint not more than three (3) additional mem- 
bers to represent himself or such interests or groups as he may deem 
entitled to such representation, 

(2) The five (5) members representing the industry shall be 
selected by the members of the industry at a general meeting called 
by the Association for the purpose, under regulations approved by 
the Administrator. 

(3) In order that the Code Authority shall at all times be truly 
representative of the industry, the Administrator shall provide such 
hearings as he may deem proper and may at any time change or 
modify the method of selection, the groups making such selection, 
and the membership of the Code Authority. 



154 

(4) Any trade or industrial association participating in the selec- 
tion of activities of the Code Authority shall : 

(a) Impose no inequitable restrictions on membership, and all 
members shall be entitled on equitable terms and conditions to 
become members thereof; and 

(b) Submit to the Administrator true copies of its articles 
of association, bylaws, regulations, and any amendments when 
made thereto, together with such other information as to mem- 
bership, organization, and activities as the Administrator may 
require, and shall comply with such orders as the Administrator 
may make in resjject thereto to effect the purposes of this Act. 

(5) Any member of the industry subject to this Code may 
participate in the selection of the Code Authority and in the benefits 
of its activities bj^ assenting to and complying with the provisions 
of the Code and sustaining a reasonable share of the expenses of 
administration. Such reasonable share shall be determined by the 
Code Authoritj^, subject to review by the Administrator, on the 
basis of volume of business and/or such other factors as may be 
deemed equitable to be taken into consideration. 

(b) The Code Authority shall have the following duties and 
f)Owers to the extent permitted by this Act and subject to review by 
the Administrator : 

(1) It shall assist in the arbitration of disputes between members 
of the industry ; 

(2) It shall bring notices of violations to the proper authorities; 

(3) It shall secure current information concerning the competition 
in domestic markets of imported braids, bandings, cloths, hat bodies, 
narrow fabrics for use and consumption by the Millinery and Dress 
Trimming trades, and if it is found that such products are being 
imported into the United States in substantial quantities or in- 
creased ratio to domestic production, and on such terms or on such 
conditions as to render ineffective or seriously to endanger the main- 
tenance of this Code, it shall complain to the President, pursuant 
to the provisions of Section 3 (e) of the National Industrial Recov- 
ery Act, and petition for suitable restrictions on the importation 
of such production. 

(4) It shall compute the lowest reasonable cost of production of 
products in the industry, which shall be determined as follows : 

It shall, from time to time, but not less than once each year, 
through certified public accountants, approved by the Adminis- 
trator, compute the lowest reasonable cost of production on a 
fair basis. When this lowest reasonable cost has been approved 
by the Administrator, it shall be proclaimed by the Code 
Authority and shall be binding upon all members of the 
industry. 

(5) It shall, with the approval of the Administrator, establish a 
procedure for the registration of style patterns and thereafter the 
copying and offering for sale of any style pattern or any style 
design originated by another manufacturer, within six (6) months 
of the date of the registry of such style pattern or style design with 
the Association by such manufacturer, with the effect of injuring 
the industry or customers or consumers, shall be an unfair trade 
practice and hereby prohibited. 



155 
Article VII 

(a) Sales Belovi Cost. — (1) No member of the indiLstry shall sell 
or distribute braids, bandings, cloths, hat bodies, or narrow fabrics, 
of his manufacture, for use and consumption by the Millinery and 
Dress Trimming trades (except distress merchandise, out of style 
numbers and/or overstocks, which are hereinafter provided for), at 
a price below the lowest reasonable cost of such product commer- 
cially made under this Code. The lowest reasonable cost shall be 
determined as provided in Article VI (b). Section 5, 

(2) In order to provide for the orderly disposition of distress 
merchandise, out of style numbers, and/or overstocks, such merchan- 
dise shall be reported to the Code Authority with such information 
as the Code Authoi-ity may require. Subject to review by the Ad- 
ministrator, the Code Authority shall recommend as speedily as 
practicable the methods and conditions of disposal with a view to 
the best interests of the manufacturer, the industry, and the public. 

(b) Any one who manufactures any of the products included 
within the industry, as defined in Article I, shall be bound by this 
Code to the extent of his production of such articles. 

Article VIII — IModlfication 

This Code and all the provisions thereof are expressly made subject 
to the right of the President, in accordance with the provisions 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, but 
without limitation, 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. 

Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrim- 
inate against small enterprises. 

Article X — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 
increases should be delayed and that when made the same should so 
far as reasonably possible be limited to actual increases in the sellers' 
costs. 

Article XI — Effective Date 

This Code shall become effective on the tenth (10th) day after its 
approval by the President. 

Approved Code No. 69. 
Registry No. 247-1-05. 

o 



Approved Code No. 70 
CODE OF FAIR COMPETITION 

FOR THE 

GAS COCK INDUSTRY 

As Approved on October 31, 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 
Eecovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Gas Cock 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, THEREFOEE, 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, and 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 dministrator 
The White House, 

October 31, 1933. 
29936 296-170 34 (157) 



October 21, 1933. 
The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Compe- 
tition for the Gas Cock Industry of the United States, conducted 
in Washington on September 18, 1933, in accordance with the pro- 
visions of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

The maximum of eight hours per day and forty hours per week 
covering factory employees in this industry, is warranted as it repre- 
sents a reduction from a weekly schedule of fifty hours. 

Executives, technical and supervising employees (not including 
working foremen) receiving more than $35.00 per week, and outside 
salesmen are excepted from the maximum hour provisions. 

Employees when engaged in emergency repair or maintenance are 
also not limited, but time and one half shall be paid for all over 
regular scheduled hours. 

A tolerance of ten percent over the forty-hour week is permitted 
for truck drivers and forty-eight hours is the maximum for watch- 
men. 

No person under sixteen years of age shall be employed and no 
person under eighteen years of age on any work of a hazardous 
nature. 

The minimum rate of forty cents per hour is established with a 
minimum rate of thirty-three cents for light repetition work. This 
light work involves comparatively little skill and is performed by 
youths in most factories with a few female employees in others. 

Minimum rates on piecework are guaranteed, and no distinction 
in rates shall be made between male and female labor on the same 
class of work. Wage differentials above the minimum shall be ad- 
justed and in no case decreased. 

Superannuated or maimed employees and learners shall receive 
at least eighty percent of the minimum wage but any employer is 
limited to not more than five percent of the total number of his 
employees at lower than the minimum rate. 

Clerical and other employees shall receive a minimum of $15.00 
per week, except that office boys and girls may be employed at not 
less than eighty percent of such minimum. 

ECONOMIC EFFECT OF THE CODE 

The industry, through the reduction in weekly hours, is increasing 
its working force thirty-one percent, at least 150 additional em- 
ployees. While the industry is comparatively small, it is important 
through its close connection with the gas-stove and gas-refrigerator 

(158) 



159 

market, which it serves. Pay rolls, through reemployment and re- 
adjustment of salaries, will be increased approximately forty 
percent. 

This industry has suffered severely from the depression, and in 
making its contribution through shortened hours and higher wages is 
carrying out the spirit of the Act. 

FINDINGS 

(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 that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Gas Cock Industry. 

(c) The Code as recommended is not designated 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. 

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

GAS COCK INDUSTRY 



To effectuate the purposes of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Ga,s Cock Industry, and upon approval 
by the President shall be the standard of Fair Competition for this 
Industry. 

Article I — Purpose 

The purpose of this Code is to — 

(a) Effectuate the policy of the Act; 

(b) increase employment under conditions sought under the pol- 
icy of the Act; 

(c) eliminate unfair competition; and 

(d) stabilize trading conditions in the Producer's market. 

Article II — Definitions 

Section 1. The term " Gas Cock " as herein used means all cock,s 
and shut-offs made and sold for use on gas ranges, gas water heaters, 
gas space heaters, gas furnaces, gas conversion burners, gas incin- 
erators, gas refrigerators, and/or any apparatus or appliance using 
natural gas, liquefied petroleum gases, and/or manufactured gas as 
primary or secondary fuel. 

(b) The term " Producer " as herein used means every person, cor- 
poration, partnership, or other legal entity promoting or actively 
engaged in the manufacture for sale of the products of the Gas Cock 
Industry as herein defined. 

(c) The term " learner " as herein used means a person having no 
previous experience in the manufacture of Gas Cocks or parts thereof 
and whose period of employment as such shall not exceed six (6) 
weeks. 

(d) The term "Association " as herein used means the Association 
of Gas Cock Manufacturers, Detroit, Michigan. 

(e) The term " Governing Committee " as herein used means the 
governing body as elected under Article V, Section 1, of the constitu- 
tion of the Association. 

(f) The term "employee" as herein used means any person en- 
gaged in any phase of the Industry in any capacity in the nature of 
employee, irrespective of the method of payment of his compensation. 

(g) The term " employer " as herein used means any producer as 
defined in Article II (b). 

(h) The term "Member of the Code" as herein used means any 
member of the Industry who shall expressly signify assent to this 
Code. 

(i) The term " Member of the Industry " as herein used means any 
producer as defined in Article II (b). 

(160) 



161 

(j) The term "Act " as herein used means the National Industrial 
Recovery Act. 

(k) The term "President" as herein used means the President 
of the United States. 

(1) The term "Administrator " as herein used means the Adminis- 
trator of the National Industrial Recovery Administration. 

(m) The term "Administration " as herein used means the Na- 
tional Industrial Recovery Administration. 

Sec. 2. The term " effective date " as herein used means the tenth 
(10th) day after this Code shall have been approved by the Presi- 
dent of the United States. 

Article III — Mandatory 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 and 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 with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

Article IV — Hours 

Section 1. No factory employee shall be employed in the Gas Cock 
Industry in excess of 40 hours in any one week, or more than 8 hours 
in any one day, except as follows : 

(a) Executive, managerial, technical, and supervisory employees 
(not including working foremen) receiving more than Thirty-five 
Dollars ($35.00) per week, and outside salesmen. 

(b) In order to maintain employment and production the schedule 
of hours in Article IV, Section 1, shall not apply to employees on 
emergency maintenance and emergency repair work, but in any such 
case, time and one half shall be paid for hours worked in excess of 8 
hours in any one day or 40 hours in any one week. 

Sec. 2. No clerical or other employee shall be employed for more 
than 40 hours per week, except as follows : 

(a) For truck drivers and shipping employees there shall be a 
tolerance of 10 percent additional hours over the 40 hours per week 
specified in Article IV, Section 2. 

(b) Watchmen whose hours shall not exceed 48 hours in any one 
week. 

Sec. 3. On and after the effective date of this Code no employer 
shall employ any person under 16 years of age; provided, however, 
that where a State law provides a higher minimum age, no person 
below the age specified by such State law shall be employed within 
that State. 



162 

Sec. 4. No person under 18 years of age shall be engaged in any 
work of a hazardous or dangerous nature. 

Sec. 5. The maximum hours hereinabove provided mark the total 
number of hours during which an employee may be employed 
whether by one or more Producers. 

Aettcle V — ^Wages 

Section 1. The minimum wage rates applying in the Gas Cock 
Industry shall be 40 cents per hour, except as follows : 

(a) On light repetitive work the rate shall be not less than 33 
cents per hour; provided, however, 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. 

Sec. 2. Where employees' earnings on piecework rates are under 
the minimum wage required by this Article V, Section 1, of this Code 
such rate shall be so adjusted as to conform with the aforesaid mini- 
mum wage and no distinction in rate shall be made between male and 
female employees where the same class of work is performed. 

Sec. 3. The wage differentials for all operations shall be equitably 
adjusted (unless such readjustment has been made since July 1st, 
1933) and in no case shall they be decreased. Each member of the 
Industry shall report all such readjustments made since May 1st, 
1933, to the Code Authority within thirty (30) days from the effec- 
tive date of this Code. 

Sec. 4. The minimum wage that shall be paid by any Producer 
to Superannuated and/or maimed employees and learners shall not 
be less than 80 percent of such minimum wages stipulated in Article 
V, Section 1, but the total number of such employees shall not ex- 
ceed in any calendar month five (5) percent of the average number 
of employees of such Producer. 

Sec. 5. Clerical employees shall be paid not less than $15.00 per 
week except office boys and girls who shall be paid not less than 80 
percent of this minimum rate and whose number shall not exceed 5 
percent of the number of employees covered by Article V, Section 5. 

Sec. 6. No person who has worked as a learner for one Producer 
for the period of time prescribed under the term " learner " in 
Article II may thereafter be classified as a learner. 

Sec. 7. No employee shall be classified in any one of the excepted 
classes herein defined in Article IV and Article V, unless he per- 
forms functions identical with those performed by employees thus 
classified on June 16th, 1933. 

Sec. 8. Each Producer shall post on his regular bulletin board or 
boards copies of Articles IV and V of this Code. 

Article VI — Standardization 

Section 1. The Association, in cooperation with the testing lab- 
oratories of the American Gas Association, may prepare standard 
specifications for the respective types, sizes and weights of gas cocks. 
When such standard specifications have been prepared and published 
to the Industry, no producer shall knowingly sell any gas cock as 
an A.G.A. approved gas cock unless such gas cock conforms with 
such standard specifications. 



163 
Akticle VII — Distribution 

Section 1. (a) Each Producer shall file with the Governing Com- 
mittee, five (5) days after the effective date of this Code, the current 
prices of his products effective at that time. 

(b) Thereafter, revised prices which may be made effective from 
time to time by the Producer shall likewise be filed with the Gov- 
erning Committee and shall become effective five (5) days after such 
filing. 

Sec. 2. The Governing Committee may at any time call upon any 
Producer for terms and prices and/or any quotation, contract, or 
other transaction. 

Sec. 3. No Producer shall sell or offer to sell, directly or indirectly, 
by any means whatsoever, any products of the Gas Cock Industry at 
a price lower or on more favorable terms and/or conditions of sale 
than those which he has filed with the Governing Committee. 

Sec. 4. Each Producer shall have the privilege of selecting his 
own customer, but he shall not discriminate in his prices between 
selected customers of the same class. 

Sec. 5. In event that the Governing Committee finds that any filed 
price would cause instability in the market, the Governing Com- 
mittee may require the Producer filing such price to establish that 
such price does not involve a net return to such Producer less than 
his cost, determined pursuant to Article XVI of this Code, or to file 
a revised price. Until such filed price is held violative of Article 
XVI it may remain in effect. 

Article VIII — Quotation Policies 

Section 1. Each quotation shall define terms and conditions of 
sale. 

Sec. 2. Each quotation shall be a firm proposal subject to revision 
only to correct errors ; or, when permissible under conditions specified 
therein, to adjust or reflect changes in prices. 

Sec. 3. No Producer shall quote a total price on any list or schedule 
of products of this Industry which does not show, or which is lower 
than the sum of the regular unit prices of the articles comprising 
the list or schedule. 

Sec. 4. No Producer shall revise a quotation for the purpose of 
" matching " or underquoting prices quoted by a competitor. 

Sec. 5. No Producer shall give advance notice to the Trade of 
his intention to change his prices. 

Article IX — Credit Policy 

Section 1. Credit privileges shall be restricted to those Pur- 
chasers whose moral and financial integrity may be reasonably well 
established. The purpose of this rule is to make it incumbent upon 
each Producer to exercise due diligence and sound judgment in an 
earnest effort to avoid action relating to the granting of credit 
privileges which might introduce instability into the market. 

Sec. 2. Each Producer shall, at the request of the Governing 
Committee, furnish the Association the names of all customers whose 



164 

accounts are past due under the terms set forth in this Code; the 
purpose of this rule being to prevent a purchaser from over- 
extending his credit with two or more producers. The operations 
of this Article shall at all times be subject to the approval of the 
Administrator. 

Article X — Terms of Payment 

Section 1. Invoices shall bear the date on which delivery is made 
to the carrier at the point of shipment. Post dating of invoices is 
forbidden. 

Sec. 2. The net due date in all instances shall not be later than 
the last day of the month next following the date of the invoice. 

Sec. 3. When a cash discount is allowed by a Producer, the rate 
shall not exceed two percent (2%) and the period in which it may 
be deducted shall not exceed ten (10) days from the date of invoices; 
except, however, that, to purchasers whose requirements necessitate 
numerous billings during the current month, it may be deductible 
as follows : 

(a) on the 25th instant from remittance covering all charges from 
the 1st to/and 15th instant and 

(b) on the 10th proximo from remittance covering all charges 
from the 16th to/and the last day of the preceding month. 

Sec. 4. In no instance shall a cash discount be allowed on trans- 
actions financed through the medium of a trade acceptance or a 
note. 

Sec. 5. The agreement to accept in advance. Bonds or other Securi- 
ties involved in the financing of a project in part or in whole pay- 
ment for the products of the Gas Cock Industry is forbidden. 

Sec. 6. Each quotation shall stipulate, and each contract shall con- 
tain, an agreement that any State and/or Federal Tax now or here- 
inafter imposed upon any producer in respect to any transaction 
predicated on such quotation or contract, or on the production, treat- 
ment, manufacture, sale, delivery, transportation, or proceeds of the 
products specified, shall be for the account of the purchaser and if 
paid, or required to be paid by the seller, the amount shall be charged 
to the purchaser. 

Article XI — Terms or Shipment 

Section 1. All domestic shipments shall be F.O.B. point of ship- 
ment, except that freight may be allowed on shipments of 125 lbs. 
or over, but such allowance not to exceed $1.00 per hundredweight^ 
nor more than the actual cost of such freight. 

Sec. 2. The Producer shall provide that he shall not be responsible 
for delays due to causes beyond his control; nor for delays caused 
by changes in specifications. 

Article XII — Delivery Specifications 

Section 1. No Producer shall agree in writing, or otherwise, to 
furnish any indeterminate quantity of products of the Gas Cock 
Industry, or any quantity of products of the Industry at an inde- 
terminate price. 



165 

Sec. 2. No Producer shall agree in writing or otherwise to furnish 
a specified quantity of the products of the Gas Cock Industry for a 
period exceeding ninety (90) days from date of quotation, agreement^ 
or contract. 

Article XIII — Consigned Stocks 

No consigned stock of the products of the Gas Cock Industry shall 
be permitted by any Producer. 

Article XIV — Distress Merchandise 

Section 1. No products of the Gas Cock Industry shall be sold 
below cost, except surplus stocks, inventories, or obsolete goods that 
must be converted into cash to meet immediate needs, which may be 
sold at such prices as are necessary to move such stock into pur- 
chaser's hands; provided, however, that all such surplus stocks, in- 
ventories, or obsolete goods are first reported to the Governing Com- 
mittee and are moved under such regulations as the Governing 
Committee may prescribe. 

If the Governing Committee should refuse to permit the sale of 
such surplus stocks or inventories or obsolete goods below the Pro- 
ducers' cost, or shall prescribe regulations which the Producer 
contends are unreasonable, the Producer may appeal to the 
Administrator. 

Article XV — Malicious Practices 

Section 1. There shall be no inducing or attempting to induce the 
breach of contract between a competitor and his customer. 

Sec. 2. There shall be no disparaging statements made respecting 
another Producer's business methods, practices, or products. 

Sec. 3. There shall be no publication or circulation, by advertise- 
ment or otherwise, of any false, misleading, or deceptive statement 
concerning the grade, quality, character, or origin of the products 
of a competitor ; or misbranding for the purpose of misleading pur- 
chasers or prospective purchasers. 

Sec. 4. There shall be no extension of service, special or otherwise, 
without a reasonable charge to promote, assist, or influence the 
demand or acceptance of products of the Gas Cock Industry. 

Article XVI — Costs 

Section 1. The Association shall have, or cause to be set up a 
uniform method of cost finding, subject to the approval of the Ad- 
ministrator, to be followed by all Producers in arriving at unit costs. 

Sec. 2. In submitting costs to the Governing Committee the method 
designated in Section 1 of this Article XVI shall be exclusively used. 

Article XVII — Administration 

Section 1. The Governing Committee of the Association is hereby 
designated the agency to cooperate with the Administrator in super- 
vision over and in the administration of this Code, provided no in-^ 



166 

•equitable restrictions upon membership are imposed. The Adminis- 
trator, in his discretion, may appoint not more than three additional 
members (without vote) to represent the Administrator on the 
Governing Committee. 

Sec. 2. The Governing Committee may appoint as agents such per- 
son or persons as it may select to administer this Code and/or rep- 
resent the Gas Cock Industry in dealing with the Administrator. 

Sec. 3. Upon its own initiative or upon complaint of a Producer 
the Governing Committee shall investigate complaints and take 
such action as it may deem necessary or expedient within the 
provisions of the Act. 

Sec. 4. To assist in the administering of this Code, each producer 
shall make available any and all relevant information, evidence or 
proof to the Governing Committee upon request of said Governing 
Committee, subject to the approval of the Administrator. 

Sec. 5. In the event that the Governing Committee, after a fair 
and impartial hearing of all interested parties, shall determine that 
legal proceedings should be instituted or that a formal report should 
be forwarded to the Administrator, it shall take such action. 

Sec. 6. The Governing Committee shall collect from members of 
Industry all data and statistics required by this Code or by the 
President or the Administrator or his or their agent or agents. Such 
information shall be confidential except insofar as disclosure may be 
necessary for the effective administration of this Code. 

Sec. 7. In addition to information required to be submitted to 
the Governing Committee there shall be furnished to Government 
agencies such statistical information as the Administrator may deem 
necessary for the purpose recited in Section 3 (a) of the National 
Industrial Recovery Act. 

Article XVIII — Participation 

Section 1. Members of the Industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Governing 
Committee and to participate in the selection of the members thereof 
by assenting to and complying with the requirements of this Code 
and sustaining their reasonable share of the expenses of its admin- 
istration. The reasonable share of the expenses of administration 
shall be determined by the Governing Committee, subject to review 
hj the Administrator, on the basis of volume of business and/or 
such other factors as may be deemed equitable to be taken into 
consideration. 

Article XIX — Monopolies 

Section 1. No Provision in this Code shall be interpreted or 
applied in such a manner as to: (1) Promote monopolies or monopo- 
listic practices; (2) Permit or encourage unfair competition; (3) 
Eliminate, oppress, or discriminate against small enterprises. 

Article XX — Contract Adjustments 

Section 1. If the cost of executing a contract entered into prior 
i;o approval of this Code is increased by reason of the effect of this 



167 

Code, it is equitable and promotive of the policies of the National 
Industrial Recovery Act tor an adjustment to be made of such con- 
tracts to reflect such increased costs, and the Governing Committee 
with the consent of the buyer is hereby desi^ated an agency to 
assist in effecting such adjustments by arbitration or otherwise. 

Article XXI 

Section 1. Such of the provisions of this Code as are not required 
to be included therein by the 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 additional Codes will 
be submitted for the approval of the President to prevent unfair 
competition and destructive competitive practices and to effectuate 
the other purposes and policies of Title I of the Act consistent with 
the provisions hereof. 

Article XXII 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Subsection (b) of Section 10 of the 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, but without 
limitation, to the right of the President to cancel or modify his 
approval of this Code or any conditions imposed by him upon hi& 
approval thereof. 

Approved Code No. 70. 
Registry No. 1335/05. 

O 



Approved Code No. 71 
CODE OF FAIR COMPETITION 

FOR THE 

PAINT, VARNISH, AND LACQUER MANUFAC- 
TURING INDUSTRY 

As Approved on October 31, 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 Paint, Varnish, and Lacquer Manufac- 
tiiring 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, recoimnendations. 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, 

Afbninistrator. 
The White House, 

October 31, 193S. 
29937 290-171 34 :lG9j 



October 27, 1933- 
The President. 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Compe- 
tition for the Paint, Varnish, and Lacquer Manufacturing Industry 
conducted in Washington on the 26th of September, 1933, in accord- 
ance with the provisions of the National Industrial Kecovery Act. 

Economic Effect of the Code 

Paint is a manufactured product used in part for new productiort 
of industrial and consumers goods, and in part as a maintenance' 
material. The quantity required for the former purpose bears a 
positive relation to general manufacturing activity. For the latter 
purpose, where the need may be deferred, the current financial con- 
dition of the owner of the property has considerable bearing upon 
the quantity of paint used. For this latter purpose also the cost of 
tlie paint is a factor of considerable importance. 

The quality of paint in general may be judged by the effective- 
ness of the covering produced, either as protection or appearance, or 
both, and the life of that covering. These qualities are not only a 
function of the ingredients of the paint, but also are a function of 
the method of preparation of the ingredients and their mixing. It 
is possible, therefore, to produce paint of varying degrees of quality 
through a wide scale of costs, and the public is not necessarily in a 
position to judge quality other than by price. As a consequence of 
this condition, many practices involving the sale of cheap paint have 
grown up in the Industry, which, coupled with the financial situation 
of the last few years, has tended to cause demoralization. 

The Code, as submitted herewith, contains in Part Two an un- 
usual number of trade practices which are considered detrimental to 
jLhe Industry and consequently are prohibited. In the form in which 
they now stand the}^ meet the approval of the Consumers' Advisory 
Board. 

The provisions contained in this Code as to minimum wages and 
maximum hours are generally in line with approved codes employ- 
ing labor of the same quality and under similar conditions. 

The reduction in the number of hours from 47.5 of June, 1933, to a 
maximum of 41.2 average for a six months' period provided by the 
Code will mean an increase in employment of approximately 25 per- 
cent. It is estimated that at the low point of emplojnnent there were 
approximately 18,000 workers in early 1933, and that the provisions 
of this Code, even under present conditions, should increase the 
number employed to nearly 25,000. 

The wages set up in the Code will increase the pay of only about 
20 percent of the workers in the Northern area and 30 percent of the 

(170) 



171 

woi-kors ill the Soutlieni area, but the resultmg (increase in purchas- 
ing power, when coupled with the increase in number of workers in 
the Industry, will be material. 

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 
Paint, Varnish, and Lacquer Manufacturing 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. 

Hespectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

PAINT, VARNISH, AND LACQUER MANUFACTURING 

INDUSTRY 

Article I — Purpose 

For the purpose of effectuatino- the policy of Title I of the Act of 
June 16. 1933, known as the National Industrial Recovery Act, the 
following: provisions are established as a Code of Fair Competition 
for the Paint, Varnish, and Lacquer Manufacturing Industry. 

Article II — Definitions 

The term " The Industry " means all persons in the continental 
United States engaged in the manufacture of paint, kalsomine and 
water paint, varnish, including shellac varnish lacquer, and kindred 
products, including putty, semifinished base materials for lacquers, 
thinners, and diluents (when such semifinished base materials are 
sold or offered for sale in competition with the finished products of 
this Industry), liquid and plastic roof coatings and roof cements, and 
artists' colors; and/or such branches or subdivisions thereof as may 
from time to time be included under the provisions of this Code, 
provided that if any member of the Industry also manufactures prod- 
ucts of any other industry, the provisions of this Code shall applj' 
only to that part of his business which is included in this Code. 
The term '* Export Trade " means any business transacted with any 
purchaser for shipment of products of the Industry outside of the 
continental United States. 

The term " employee " as used herein includes any person engaged 
in any phase of the Industry in any capacity in the nature of em- 
ployee irrespective of the method of payment of his compensation. 
The term " employer " as used herein includes anyone for whose bene- 
fit such an emploj^ee is so engaged. The term " member of The 
Industry " includes any manufacturer who shall be subject to this 
Code. The term " member of the Code " includes any member of The 
Industry who shall expressly signify assent to this Code. The term 
"Association " herein means the American Paint and Varnish Manu- 
facturers' Association, Inc., and the National Paint Oil and Varnish 
Association, Inc., or their successor or successors. The term "Asso- 
ciation Headquarters " means the office maintained jointly by the As- 
sociations at 2201 New York Avenue, NW., Washington, D.C. The 
term " Trade Sales " as used herein means all sales to jobbers, dealers, 
painters, automotive refinishing shops, and sales made directly to the 
consumer, with the exception of such sales as are hereinafter defined 
as- ". Industrial Sales." The term " Industrial Sales " as used herein 
means all sales to the following classes of buyers, covering products 
of Tlie Industry used by such buyers on their products or for the 
finishing of their equipment and for the painting, upkeep, and 

(172) 



173 

maintenance of their plants, equipment, tenements, and for any other 
purpose. 

Industrial plants of all kinds (such as automobile manufac- 
turers, implement manufacturers, furniture manufacturers, 
etc., etc.) 

Transportation companies (including street railways, bus, and 
air transportation companies) 

Car and locomotive builders 

Public service companies 

Oil refiners and pipe-line companies 

Packing houses 

Steel manufacturers and those who fabricate their own prod- 
ucts 

Bridge builders and bridges 

Coal or otlior mining operations 

Steamship lines, shipyards, wharves, and docks 

All departments of any State, County, Municipal, or other 
political subdivisions, but only for the following products : 
traffic paint; road paint; products used on bridges, trucks, 
and machinery ; automobile license tag coatings ; or mate- 
rials for finishing furniture, or any other products manu- 
factured in prisons or reformatories. All other business 
from State, County, Municipal, and other political subdi- 
visions, such as products used on buildings, institutions, etc., 
to be classified as *' Trade Sales." 

All Departments of the Ignited States Government, regardless 
of usage. 

Article III — Industry Law^ axd Effective Date 

On and after the fifteenth calendar day after the President of the 
United States shall have approved this Code, the provisions hereof 
shall constitute standards of fair competition for The Industry and 
shall be automatically binding upon all members of The Industry, 
except that all articles of this Code which are included in Part 2 
hereof shall not apply to export trade. 

Article IV — Collective Bargaining 

In accordance with Section 7 (a) of the Act of June 16, 1933, 
known as the National Industrial Recovery Act, it is agreed : (1) that 
employees shall have the right to organize and bargain collectively 
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-organiza- 
tion 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 maximum hours of 
labor, minimum rates of j^ay, and other conditions of employment 
approved or prescribed by the President. 



■ 174 
AnxicLE V — Minimum Wages and Maximum Hours 

(a) No employee engaged in accounting^ clerical, office, or delivery 
service in any office or in any other place or manner, excepting em- 
ploj^ees in retail stores and excepting outside salesmen, shall work or 
be permitted to work in excess of 40 hours per week for 20 weeks 
and 48 hours per week for 6 weeks in any 26-week period. 

(b) No factory or mechanical worker or artisan shall work or be 
permitted to work more than 40 hours in one w^eek nor more than 8 
hours in any one day; provided, however, that during any 6 weeks 
of a 26- week period (the first period to begin on the effective date 
of this Code) employees may work not more than 45 hours a week 
nor more than 9 hours in any one day, with the exception of (1) 
supervisory staff (including foremen), (2) maintenance workers, 
engineers, and firemen, which excepted employees may not work in 
excess of the maximum hours stated above except by payment of one 
and one-third rate for overtime if such employees are compensated 
on an hourly basis. Each week during any 26-week period shall be 
considered as a com])lete unit of employment for the purpose of pay- 
ing for overtime to excepted employees. If an excepted employee on 
an hourly basis works more than 40 hours and not more than 45 
hours in any one week, the employer shall compensate him at the end 
of said week for the hours worked in excess of 40 hours at the extra 
rate or shall declare to the employee that such week will be considered 
as one of the 6 weeks in which a maximum of 45 hours is permitted. 
This does not, however, mean that an excepted employee, when neces- 
sary, may not work more than 45 hours at the extra compensation. 
If such excepted employees are paid by the week, month, or on a 
yearly basis and enjoy vacation periods, sick leaves, and other benefits 
granted to salaried workers they shall not be paid an additional 
amount for any reasonable overtime work. 

(c) The maximum hours fixed in the foregoing Paragraphs (a) 
and (b) shall not appl}' to watchmen, janitors, or other caretakers: 
nor to employees in a managerial, executive, or other capacity who 
receive $35.00 per week or more; provided that with respect to the 
exceptions in this Paragraph and in Paragraphs (a) and (b) of this 
Article there shall be no eA'asion of this Code by reclassification of 
the function of workers. A worker shall not be included in any one 
of the above exceptions unless the identical functions which he 
performs were identically classified on June 16, 1933. 

(d) The provisions for maximum hours set forth in Paragraphs 
(a) and (b) of this Article establish a maximum number of hours of 
labor per 26- week period for each emploj^ee so that under no circum- 
stances shall any employee knowingly 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. 

(e) Employers in The Industry, subject to the exception provided 
in Paragraph (h) of this Article, shall not pay any of the classes of 
employees covered by Paragraph (a) 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 ])er 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 i^er week in any city or town of less than 250,000 



175 

l^opuhitioii. or in the imiiu'diatc ti'adc aieji of such city or town; 
provided that employers in 'V\w. huhistry may pay to any class of 
employees covered by Parairrapii (a) who |)erl'orm tlu^ work of office 
boys and office ^irls. not less than 80 percent of the minimum wage 
designated by this l*;uagra}jii, provided that the numbei- so excepted 
shall not exceed 5 percent of tlie total employees of the employer and 
provided, further, that each employer may have at least one such 
employee. J-*ojndation for the purposes of this Code shall be de- 
termined bv i-eference to the 1930 Federal Census. 

(f ) P]mployers in The Industry, subject to the exception provided 
in Paragrapli (h) of this Article, shall iiot pay any employee of the 
classes covered by Paragraph (b), or employees excepted therein, 
namely, supervisory staff (including foremen), maintenance workers, 
engineers, and firemen, less than 40 cents per hour to male employees, 
or less than 35 cents per hour to female employees. The foregoing 
distinction in minimum rates between male and female em])loyees is 
not a discrimination by reason of sex but because of a difference in 
the work done. Where female employees do the same kind and 
amount of work as male employees they shall receive the same wages. 
It is agreed that this Paragraph establishes a guaranteed minimum 
rate of pay regardless of whether the employee is compensated on 
the basis of a time rate or on piecework performance. 

(g) The provisions of Paragraphs (e) and (f) of this Article 
shall not apply to any employee partially incapacitated through age 
or otherwise, who has served not less than 10 3^ears in the continuous 
employment of the employer, provided that the number so excepted 
shall not exceed 5 percent of the total employees of the employer, and 
provided that each employer may have at least one such employee, 
and provided further that the minimum wage paid to such employee 
shall not be less than 30 cents per hour. 

(h) Employers in The Industry shall not pay less than 90 percent 
of the minimum wages provided in Paragraphs (e) and (f ) of this 
Article, to employees in the Southern states. For the purpose of this 
Article, the Southern States are defined as — 

Alabama North Carolina 

Arkansas Oklahoma 

Florida South Carolina 

Georgia Tennessee 

Kentucky Texas 

Louisiana Virginia 
Mississippi 
(i) No person under the age of 16 shall be employed in The 
Industry. 

Articlp: VI — Presidential Authority 

As required by Section 10 (b) of Title I of the National Indus- 
trial 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 Title I 
thereof. 

29937—34 2 



17(3 

Article VII — Monopolies 

No provision in this Code siiall be' interpreted (W applied in such 
a manner as to : (1) Pronu)te monopolies; ('J) Permit or encourage 
unfair competition; (3) Eliminate, oppress, or discriminate against 
small enterprises. 

Article VIII — State Laws 

Within eacli 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 general working 
conditions, than under this Code. 

Article IX — Keports 

The Paint Industry Recovery ]ioard. through Association Head- 
quarters, shall collect and provide all reports required by the Admin- 
istrator under the National Industrial Recovery Act. Every member 
of The Industry shall furnish such reports as are required pursuant 
to such requirements. 

In addition to information required to be submitted through the 
Paint Industry Recovery Board, there shall be furnished to govern- 
ment agencies such statistical information as the Administrator may 
deem necessary for the purpose recited in Section 3(a) of the 
National Industrial Recovery Act. 

Article X — Adm ixistratiox 

After this Code shall have been approved by the President of the 
United States, it shall be administered through the Association by a 
board to be immediately created and to be known as the '" Paint 
Industry Recovery Board.'' 

This Board shall be composed of the following members : Not 
more than 3 members Avithout voting power to be api)ointed by the 
President, the 8 members of the present General Code Committee. 
20 members, representing commodity groups. 20 members repre- 
senting communities. 

The members of the Board representing connnodity groups shall 
be elected as follows : .') members to be elected by paint manufac- 
turers, 5 members to be elected by varnish manufacturers, 5 members 
to be elected by lacquer manufacturers, 5 membei-s to be elected by 
kalsomine and water-])aint manufacturers. 

Provided that each of these groups shall contain 2 meml)ers from 
the Eastern .'states. 1 member from the States in or west of the Rocky 
Mountains and 2 members from the remaining States. Nominations 
for election to the Board for said Commodity groups shall be made 
by members of The Industry at large, regardless of membership in 
any association, and the nominations so made shall be submitted to a 
mail vote of all members of The Industry throughout the United 
States and those receiving the highest number of votes in each Group 
shall be declared to have been elected to represent the Commodity 
groups. The members of the Board re])resenting communities shall 
be elected in the following manner : 1 each to be elected by the mem- 
bers of The Industry doing business in the logical trading areas of 
the following cities, which manufacturers shall be called together for 



177 

the purpose of such election b}' the President of the Local Paint 
Club, or local paint manufacturers' association if any such exists : 
Atlanta-New Orleans Kansas City 

Baltimore Los Anj^eles 

Boston Louisville 

Buffalo Minneai)()lis-St. Paul 

Chicago New York 

Cincinnati Philadelpliia 

Cleveland Pittsbui-gh 

Dallas-Houston St. Louis 

Denver San Francisco 

Detroit Seattle-Tacoma-Portlaud 

No person shall be eligible for membership on this Board who is 
not directly engaged in the manufacture of products of The In- 
dustry, except the members to be appointed by the President of the 
United States. Furthermore, no company or group of affiliated com- 
panies shall have more than one representative on this Board. 
Vacancies which may occur in the Board for any reason whatsoever 
shall be filled by election in the same manner as hereinbefore pro- 
vided. This Board, subject to the approval of the Administrator, 
shall elect its own Chairman, adopt its own rules of procedure (not 
in conflict with any other provisions herein contained), appoint such 
committees as may to it seem necessary from time to time, and may 
delegate its authority to such committees. A majority of the Board 
shall have the power to recommend to the Administrator for his 
approval the addition of representatives of other groups or com- 
munities to its membership; provided that such additional members 
shall be elected in the same manner as above described. 

The staff. Association Headquarters, and other facilities of the 
Association shall be employed in carrying out the work of the 
Paint Industry Recovery Board. Such funds as may be required for 
the work of this Board shall be subject to appropriation by the 
Budget and Finance Committee of the Association. All members 
of the Industry or groups thereof who qualify as such imder this 
Code are eligible to membership in the American Paint & Varnish 
Manufacturers' Association, Inc., or its successor, without pajanent 
of initiation fee, which has been temporarily waived. If group 
membership, such groups shall pny into the Treasury of the Ameri- 
can Paint and Varnish Manufacturers' ^Association, Inc., a total 
amount equal to the dues of each member of such group as if each 
member w^ere a direct member of the American Paint and Varnish 
Manufacturers' Association, Inc. If for any reason an eligible man- 
ufacturer does not desire to join this Association he may, neverthe- 
less, receive all of its benefits, including participation in this Code, by 
paying a fee to its Treasurer equal to the dues, provided that should 
any member of this Code desire not to become a member of the Asso- 
ciation and desire not to pay to its Treasurer a sum equal to the 
dues, he shall nevertheless jmy his proportionate share of the 
amounts required to pay the cost of assembly, analysis and publi- 
cation of necessary reports and data and of the maintenance of this 
administrative authority and its activities and the Paint Industry 
Recovery Board shall assess each such member of the Industry Avith 
his proportionate share based upon the value of sales or otherw^ise 



ITS 

as the Paint Industry Recovery Board may prescribe, subject to the 
aj^proval of the Administrator, 

The Paint Industry Recovery Board shall have full responsibility 
for its expenditures within the limits of such appropriations as are 
made from time to time, provided that no traveling or other ex- 
penses of Board members shall be paid out of the Association funds 
when attending Board meetings, but actual expenses of members of 
the Board when engaged in the business of the Board, other than 
attendance at Board meetings, may be paid out of such funds pro- 
vided prior authority for such expenditure or expenditures has been 
given by the Board. 

Article XI — A:mendments 

Such of the provisions of this Code as are not required to be in- 
cluded therein by the National Industrial Recovery Act of June 16, 
1933, may, with the approval of the President, be modified or elimi- 
nated as changes and circumstances or experience may indicate. It 
is contemplated that from time to time supplementary provisions to 
this Code will be submitted for the approval of the President to 
prevent unfair competition in price and other unfair and destructive 
competitive practices and to effectuate the other purposes and poli- 
cies of Title I of the National Industrial Recovery Act, consistent 
with the provisions hereof. Members of The Industry or a local 
paint manufacturers' association, if any such exists, shall submit 
desired amendments of this Code to the Paint Industry Recovery 
Board through Association Headquarters. B}^ agreement of a ma- 
jority of the Board, an amendment, so received or one initiated by 
the Board itself, shall be referred to The Industr}^ in the following 
manner : those members of the Board who represent the commodity 
groups shall submit the proposed amendment to their respective 
groups, if in their opinion it is germane to the interests of such 
groups; those members of the Board who represent manufacturers 
from the several cities shall call meetings of the manufacturers in 
their communities. The several Board members shall then submit 
individual reports to Association Headquarters, which shall collate 
them and submit a full report to the Board. Thereafter the Board 
shall vote on submitting the Amendment to the Government and 
shall so submit it if at least two-thirds of the Board vote to do so, 
provided that the proponent of any amendment shall have the right 
to submit such amendment direct to the National Recoverj'^ Admin- 
istration for its consideration. 

By presenting this Code the members of The Industry do not 
thereb}^ consent to any modifications thereof and reserve the right 
to object individually or jointly to any such modifications. 

PART 2— TRADE PRACTICES 

Article XII — Misbranding, Mislabeling, and False Advertising 

Misbranding, mislabeling, and false, deceptive, and misleading ad- 
vertising are prohibited by this Code. 



170 
Article XIII — Gifts to Emi'loyees of Another 

It shall be a violation of this Code for any person engaged in The 
Industry, to offer or give — or to permit any representative of his to 
offer or give — any commission, gratuity, or other thing of substantial 
value to employees of his customers or prospective customers, except 
in the case of payments made with the consent of the employer for a 
definite service rendered. 

Article XIV — Manufacturing Restrictions 

It shall be a violation of this Code for any manufacturer to fail 
to abide by the manufacturing restrictions as set out in Schedule 
A which is attached hereto and made a part of this Code, provided 
that this Article shall not apply to export trade and provided fur- 
ther that Paragraphs 2, 4, 5, and 6 of Schedule A shall not apply 
to products commonly known as 5-,* 10-, and 25-cent merchandise 
which is sold at retail to the consumer at not more than 25 cents per 
package. 

Article XV — Exchange of Goods 

The practice of taking in exchange for one's own goods. Industry 
products of another manufacturer, distributor, or dealer, is un- 
ethical, unfair, and is hereby prohibited. It shall be a violation of 
this Code for any manufacturer in the Industry to take or allow to 
be taken in exchange for his own products, any products of the 
Industry, or to give or permit the giving of any advice or assistance 
in facilitating such exchange or replacement, or to make or permit 
to be made any concessions, allowances, or gifts of any kind to 
promote or facilitate such exchange. 

Every member of the Industry is required to enter into a written 
agreement with his jobbers and/or distributors whereby such job- 
bers and/or distributors agree to refrain from the practice prohibited 
by this Article. It shall be a violation of this Code for any member 
of the Industry to deal or continue to deal with any jobber and/or 
distributor who shall have acted contrary to such agreement, pro- 
vided that no member of the Industry shall be held responsible for 
such dealings as he may have engaged in prior to the time he has 
received notice of the breach of such agreement by a jobber 
and/or distributor, and provided that no member of the Industry 
shall be held responsible for such dealings after the Paint Industry 
Recovery Board has given approval for further dealings with a 
jobber and/or distributor who may have violated such an agreement. 
The Paint Industr}^ Recovery Board may require each member of 
the Industry to file a copy of each agreement which he may make 
with a jobber and/or distributor. 

Article XVI — Standard Terms of Cash Discount 

On and after the effective date the terms granted by manufac- 
turers, excluding export trade, shall not exceed : Trade sales accounts, 
2 percent for cash in 10 days, net 60 days ; industrial sales accounts, 1 
percent for cash in 10 days, net 30 days ; except that the discount to 



180 

trade sales accounts may be extended to the 10th day of the month 
folhnvino; purchase and the discount to industrial sales accounts may 
be extended to the 20th da}- of the month following purchase to cus- 
tomers who regularly discount in the month following purchase, and 
provided that no discount shall be allowed after the discount date. 

Article XVII — Datings 

Except as specifically provided by this Article, members of The 
Industry shall not grant any datings on the sales of any Industry 
products. 

(a) Spring Stock Orders. — Datings on orders to established dealer 
and/or jobber accounts, excluding export trade, shall be limited to 
datings on Spring Stock Orders shipped at the manufacturer's con- 
venience after October 15. with an April 1 dating and regular terms; 
one order to an account. 

(b) Neui Accounts. — The maximum dating on trade sales stock 
orders (initial stock order only) to new dealer and/or jobber ac- 
counts, excluding export trade, shall be limited to four months from 
the date of shipment and Avith standard terms, provided that orders 
shipped between October 15 and December 1 in any year may be with 
an April 1 dating and with regular terms. 

(c) Roof Coatings and Cements. — A maximum dating of four 
months may be given on a carload of not less than 10,000 lbs. of 
liquid and plastic roof coatings and/or roof cements, not including 
other products, whenever the lowest published less-than-carload 
freight rate (by rail or water) is more than 50 cents per cwt. 

(d) Anticipated Discount. — If any dating shall be permitted 
under this Article, an anticipated discount may be allowed to the 
extent of one-half of one percent a month. 

Article XVIII— Guarantees 

(a) Price Guarantees. — Guarantees against price decline shall be 
prohibited except in the case of an order on which a dating has been 
allowed under Article XVII. when such a price guarantee may be 
given for a time not to exceed the dating period granted. 

(b) Thne Guarantees. — Definite time guarantees on the life and/or 
service of the products of The Industry are hereby prohibited. 

Article XIX — Consignment 

The practice of supplying accounts on consignment and/or trust 
certificate agreements, except as hereinafter provided, is prohibited. 
This also includes consignments which are sometimes made under 
so-called " warehouse agreements " but does not prohibit manufac- 
turers from carrying a stock of their goods in a public or private 
warehouse at their own expense in any section of the United States, 
provided that such stocks must not be warehoused with or for the 
account of any person, firm, or corporation dealing in or handling 
(as a merchant) or using (as a painter) products of the industry. 
Every manufacturer who has any such consignment stocks in the 
hands of buvers on the effective date of this Code mav continue the 



181 

same but he shall file a detailed list of such accounts within 60 days 
of the effective date of this Code witli Association Headquarters 
and/or the office of a local paint manufacturers' association, if any 
sucli exists, where reference may be made to it at any reasonable time 
by interested parties. Until such time as an account as listed above 
is discontinued, such accounts may be similarly supplied by any 
manufacturer in the Industry. The Paint Industry Recovery Board 
shall, subject to the approval of the Administrator, develop such 
plans as will effectuate the ultimate elimination of consignments 
from the Industry. This Article shall not apply to export trade. 

Ar'itcle XX — Free Deals 

Except as otherwise provided herein, free deals in or connected 
with Industry products are prohibited. '' Free deals " for the })ur- 
pose of this Code means all forms of marketing devices, including 
the gift or loan of spraying or other valuable equipment, whether 
the full cost thereof or only a part of said cost is borne by the manu- 
facturer, whereby the said manufacturer furnishes goods of any kind 
other than such of his own products as have been contracted for on 
his usual terms : Provided that the term " Free Deals " shall not 
apply to the furnishing of advertising accessories of small value, 
such as the usual circulars, color cards, window displays, display 
racks, and posters which accompany paint and varnish products as a 
description thereof, nor shall it apply to novelties of small value such 
as caps, yardsticks, paddles, etc. 

Furthermore, the term '' Free Deals " shall not be construed to 
include any advertising allowance w^hich is made for a definite serv- 
ice rendered and for which there is a proper accounting that is audit- 
able as direct charge for cooperative advertising. 

Illustrative of the practices which are prohibited are included the 
following : 

(a) Premiums (gifts of unrelated merchandise) such as blankets, 
articles of furniture, etc. 

(b) Prizes and aw^ards. This does not refer to prizes and awards 
given within a manufacturer's own organization. 

(c) Free Goods (extra amounts of one's own products). 

(d) Merchandising practices of the type commonly known as 
" One-cent sales." 

(e) Free Samples. (But the term "Free Deals " does not apply 
to samples given for test purposes ; neither does it apply to trade-sale 
samples given for demonstration purposes, provided that no size 
larger than 5-lb. samples of water-paint goods in dry form or 1/32 
gallons of other industry products shall be so used and that such 
samples are plainly labeled " Samples.") 

(f ) The sale of alcohol, turpentine, linseed oil, or any other prod- 
ucts not manufactured by The Industry at prices less than the resale 
market price. 

Article XXI — Discontixuance of Shades and Colors 

When it becomes necessary and advisable for any manufacturer to 
discontinue certain shades or colors in any trade-sales line, he shall 
give his dealer and/or jobber customers who purchase such lines six 



182 

months* advance notice i^rior to discontinuing the manufacture of 
such shades or colors, providing that this Article shall not apply to 
■export trade. 

Article XXII — Selling Below Cost 

Products of The Industry shall not be sold at less than cost as 
herein defined : 

(1) The cost of Lacquer Thinners in full tank cars or tank wagons 
containing not less than one thousand-gallon quantity, when sold and 
delivered to one purchaser, shall be not less than the sum total of the 
current market replacement price of each and every ingredient in the 
completed Thinner. 

The cost of all other products shall include the following: 

(2) The seller's total market replacement cost of raw materials 
(based on cost furnished monthly, or oftener if necessary, by author- 
ity of the Paint Industry Kecovery Board through Association Head- 
quarters, subject to approval by the Administrator) ; and if any raw 
materials are used (such as varnishes, japans, driers, etc., purchased 
in finished form by the seller) for which costs are not furnished 
monthly or oftener, as herein provided, the cost used for such item 
or items shall be the seller's total current delivered replacement cost, 

(3) Containers and/or packages, 

(4) Cost of Processing . — To include all direct costs (such as power 
and labor), depreciation figured in accordance with provisions of the 
Federal Income Tax laws, plus a proper proportion of all indirect 
factory expenses (excepting interest on investment), in accordance 
with the share each product should bear, provided that the distribu- 
tion of indirect factory expense per unit of production shall be on 
the basis of the average rate of utilization of plant facilities of profit 
making producers during the years 1928 to 1932 inclusive, and pro- 
vided that such average rate shall not include anj' plants not in 
operation, 

(5) There shall also be included in the cost a proportion of the 
general and administrative expenses, such proportion to be deter- 
mined and to be recommended by the Paint Industry Recovery Board 
to the Administrator for approval, 

(6) Transportation charges when goods are sold f.o.b. destination. 
In the case of any complaint by an interested party that a manu- 
facturer is violating the above cost provisions the burden of proof of 
compliance shall rest upon the accused manufacturer. If the Code 
Authority or the Administrator is not satisfied by the proof furnished 
by the defendant manufacturer the matter is to be referred to the 
Federal Trade Commission who shall audit the cost accounting of 
the defendant and review his allocation of burden; and the report 
of that Commission shall be final regarding the costs of the defend- 
ant manufacturer. 

Article XXIII — Competitive Relatioxs 

(a) Inducing Breach of Contract. — No manufacturer either di- 
rectly or indirectly or through his salesmen, representatives, or 



183 

a<j:t'nts, shall encoiira<re mxy piu-chaser of the products of The In- 
thistrv to disregard or fail to live up to his coiuuiitment to another 
iiiember of the Industry. 

(b) Disparaf/ement of Com/pet it ors. — The use of or participation 
in tlic publishing or the disseminating of any false statement, repre- 
sentation or insinuation Avhich disparages the business of a competi- 
tor, or attacks the rei)utation. goods, ])rices, credit, service, or adver- 
tising of any competitor or of any other industry, is an unfair and 
uneconomic practice and is prohibited. 

(c) Enticing Employees. — Members of The Industry shall recog- 
nize the right of employees to use all honorable and reasonable efforts 
to better their conditions, but shall refrain from directly or indirectly 
soliciting or bidding for the services of the employee of another 
member. Only when such an employee takes the initiative shall a 
member of The Industry have the right to negotiate with him about 
prospective employment. 

Article XXIV — Returned Goods 

Xo member of The Industry shall accept the return of merchan- 
dise from any customer without having given prior consent to the 
return thereof. On such goods as are accepted for return a reason- 
able charge shall be made and the freight charges must be charged 
to the shipper returning the merchandise, except in the case of de- 
fective products or where in some other way the manufacturer may 
be responsible. 

Approved Code No. 71. 
Registry No. 619/1/03. 



SCHEDULE A 

Manufacturing Restrictions. — Industry products, excepting those for export 
trade, shall not be manufactured for the purpose of marketing them as trade 
sales goods in containers of sizes and types prohibited by this rule, nor shall 
they be produced in tints or shades to a greater number than allowed by this 
rule, subject to Article XXI hereof, provided that Paragraphs 2. 4, 5, and 6 
hereof shall not apply to products commonly known as 5-, 10-, and 25-cent 
merchandise which is sold to the consumer at not more than 25 cents per 
package. 

1. (a) No two-pound cans in any line, except floor wax. 
(b) No three-pound cans in any line. 

2. (a) No sizes less than quarter-gallon in barn and roof paint, 
(b) No sizes less than gallon cans in shingle stain. 

3. No half -gallon cans in the following products : Aluminum paints, barn 
paints, roof paints, auto-top dressing, wagon and carriage paints and enamels, 
oil stains, spirit stains, and vanii.-^h stains. 

4. No half-pint cans in first-grade house paints. 

5. No half-pint cans in first-grade flat paints. 

6. No quarter-pint cans in all house paint and flat paint. 

7. No oblong or square varnish cans in sizes smaller than one-half gallon 
for any product, excepting shellac varnishes, carriage and automotive finishes 
(clear and colors), lacquers, lacquer thinners, liquid wax, liquid polish, varnish 
remover, bronzing liquid, Japan and Liquid driers, penetrating stains and spirit 
stains. 

8. No shades or tints in excess of the following maximum numbers for each 
brand and/or color cai-d : 

Interior floor paints and floor enamels 10 

House Paints 32 

Flat Wall Paints 20 

Enamels IS 

Porch Paints 8 

Roof and Barn Paints 4 

Shingle Stains 14 

Wagon and Carriage Paints or Enamels 10 

Oil Stains 30 

Varnish Stains 8 

Spirit and Penetrating Stains 14 

(All the foregoing excUtsive of black and white t 

Oil Colors 32 

(Including black, but counting the several shades of a 
single color as one color.) 

8. (a) The maximum number of grades for the following products shall be: 

Architectural and Marine Varnishes 10 

(Interior and exterior) 

Other Varnishes 28 

(Including all not previously specified, such as Japan 
Driers, Asphaltum, etc.) 

9. No oil colors in other than liquid measure or in other than three sizes, 
namely, gallons, quarts, and ha If -pints, with the exception of tubes, and except- 
ing also glass jars when sold as a part of a sales unit with white base paint 
to be tinted with such colors in oil in glass jars to standard colors, which sales 
unit has been especially developed for this purpose by the manufacturer. 

(184) 



185 

Manufacturing Restrictions for Kalsoniine and Water Paints. — 10. No shades 
or tints in exc'e^s.s of tlio following numbei's foi eacli color card : 

*Kalsoniine (Hot Water) 20 

*Kalsomine (Cold Water) 20 

Water Paint, interior non-washable White only 

Exterior water-mixed paints washable paste and powder 

form 20 

Interior Water-Mixed Paints washable paste and powder 

form 20 

Fresco or Positive, Art or Deep Colors 20 

Plastic Paints 8 

Cement and/or Lime Water Mixed Paint 16 

11. Kalsomine (Hot or Cold) in the following sizes only: Barrels weighing 
not less than 300 lbs. net, except for the Pacific Coast, where the 280 lb. baiTel 
is authorized ; kegs containing 100 lbs. not weight ; 25 lb. net weight packages ; 
5 lb. net weight containers. 

(Existing contracts covering Kalsoniine in containers differing in weight 
content from standards covered herein shall be completed prior to December 
31, 1933, provided that should a purchaser, now under contract with a manu- 
facturer extending beyond that date, decline to accept a readjustment of his 
contract to bring the packages into line with these provisions, the manu- 
facturer party to the contract shall refer the matter to the Paint Industry 
Recovery Board prior to December 31, 1933. for such amicable adjustments as 
the Board may be able to work out with the parties at interest.) 

12. Interior Cold Water Paint, powder form, nonwashable. Barrels weigh- 
ing not loss than 350 lbs. net, 25 and 100 lb. containers, 5 lb. net weight 
containers ; to be made in White only. 

13. Plastic or Texture Paints (Dry), in the following sizes only: 5, 10, 25, 
50, and 100 lb. net weight containers and not less than 300 lb. net weight 
barrels. 

Paste form in same size containers as First Grade Flat Paints. 

14. Patching Plaster to be sold in sizes as now marketed. 

15. Interior and Exterior W^ater-Mixed Paints, Washable, in the following 
sizes only : 

(a) Dry Poicder Form.— 5 lb., 25 lb., and 100 lb. containers; barrels of 300 
lbs. net, or more. 

(b) Paste Form. — 1 quart, 1 and 5 gallon cans and 30 gallon drums. 

16. Cement and/or Lime Bound Water Mixed Paints in the following sizes 
only : 5 and 10 lb. containers, 50 and 100 lb. containers, barrels of 300 lbs. net, 
or more. 

17. Fresco Colors (Positive, Deep, or Art Colors) to be packed in the follow- 
ing sizes only : 

(a) Powder Form. — 1 lb. cartons or cans, 25 and 100 lb. containers, Barrels 
or 300 lbs. net or more. 

(b) Paste Form. — To be packed in % piut, quart, and 1 gallon cans only. 

18. Dry Sizes, Water-Mixed. To be packed in the following sizes only : 
1 lb. cartons, 100 lb. containers, and 300 lb. Net Barrels, or more. 



* Means material commonly known and described by this term. 



o 



Approved Code No. 72 

CODE OF FAIR COMPETITION 

FOR THE 

PACKAGING MACHINERY INDUSTRY AND TRADE 

As Approved on October 31, 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 Packaging- Machinery Industry and Trade, 
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 authorit}^ vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report and 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, 

Ad77iinist7'ator. 

The White House, 

October 31, 1933. 

29038 296-000 34 (187) 



October 23, 1933. 
The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Packaging Machinery Industry and Trade of the United 
States, conducted in AVashington on October 11, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

Pro\isions as to Wages and Hours 

No person under 16 years of age shall be employed nor any person 
under 18 years of age at hazardous occupations or those detrimental 
to health. 

A minimum rate of 40 cents per hour shall be paid to any employee 
engaged in the making of the products of the Industry, and in labor 
operations directly incident thereto. 

The minimum rate applying to any other employees shall be $15.00 
per week in any city or immediate trade area of such city of over 
500.000 population ; a minimum of $14.50 in any city or trade area of 
such city, of between 250,000 to 500,000 population; or, $14.00 in 
any city or town of less than 250,000 population or within the imme- 
diate trade area of such city or town. 

Except that office boys and girls and learners may be paid not less 
that 80 percent of such minimum wage, the number of whom shall 
not be more than 5 percent of the total number of employees covered 
by weekly salaries. 

Apprentices may be retained under contract at predetermined 
wages during the period of apprenticeship in order to learn the 
trade, but such existing and future contracts shall be filed with the 
Code Authority. 

Employees who, by reason of physical disability or infirmity, are 
competent for light work only may be paid not less than 80 percent 
of the minimum wage and a record of each case shall be filed with 
the Code Authority, 

Wage rates for those employee! receiving more than the minimum 
wage shall be equitably adjusted as far as practicable, but in no 
case shall they be decreased. 

A maximum day of 8 hours and a maximum week of 40 hours is 
adopted. On account of the intricate construction of the special 
machiner}^ built by this Industry, the maximum hours adopted are 
felt to be necessary for the reason that it is impossible to change 
crews and a one-shift basis is the only logical mode of operation, 
and a shorter work week would result in no additional reemploy- 
ment. 

During a temporary peak demand the Industry may operate on 
a schedule not to exceed 48 hours in any one week or not to exceed 
8 weeks in any 6 months' period, provided that time ?nd one half 

(188) 



189 

is paid for all time worked in excess of 8 hours in any one day or in 
excess of 40 hours in any one week. 

Further exenij)tion is made for employees enf^ajjed in emergency 
repair work involving breakdowns or ioi- protection of life and 
propei'ty. In such cases time and one lialf must he })aid for all time 
over tlu> maxiimnn hours lierein j)rovi(U'd. 

Exceptions are also nuide for executives, ])rofessional persons, 
heads of administrative departments, factory and office supervisory 
start's (not including foremen primarily engaged in productive work) 
and technical enginfcers (provided that none of the foregoing re- 
ceive less than $85.00 per week) outside service men and field sales- 
men, and watchmen provided that watchmen shall not woi-k more 
than 5(5 hours in any one week. 

Accounting, clerical, office service, office sales, express, delivery, 
stock keeping, or shipping employees shall not work more than 40 
hours a week monthly average nor more than 48 hours in any one 
week except during the month of the annual audit. 

Economic Effect of the Code 

The estimated total sales of this Industry in 1932 were 57.6 per- 
cent of sales in 1929 and represented only 29 percent of plant capac- 
it}^ The lowest level of employment within recent years occurred 
in March 1933, and on June 15, 1933, only 1,584 were employed. 
Since June 15th, however, 536 employees have been added. 

Increased pay rolls from reemployment and adjusted differentials 
in wages furnish evidence of the fullest cooperation with the spirit 
of the Act. 

Findings 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without lim- 
itation, 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 
Packaging Machinery Industry and Trade. 

(c) The Code as recommended is not designated 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 approved. 
Respectfully, 

Hugh S. Johnson, 
' Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

PACKAGING MACHINERY INDUSTRY AND TRADE 

Article I — Purposes 

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 Packaging Machinery Industry and 
Trade. 

Article II — The Industry and Trade 

Section 1. The term " packaging machinery industry ", as used 
herein, is defined to mean the manufacturing and/or importing 
and/or marketing of power-driven automatic and semi-automatic or 
hand- or foot-operated machinery and/or equipment and parts there- 
of used in the manufacture of ]Dackages (except machinery for the 
manufacture of glass, wood, and metal packages) and in packaging 
processes and/or in the preparation of products for shipment. 

Sec. 2. The term " packaging machinery trade ", as used herein, 
is defined to mean and includes the business of importing and/or 
marketing of packaging machinery and/or equipment and parts 
thereof. 

Article III — Applicant 

Section 1. (a) The applicant for this Code is Packaging Ma- 
chinery Manufacturers Institute, Incorporated, a trade organization 
all members of which are engaged in such manufacturing and/or im- 
porting and/or marketing, and which organization is truly repre- 
sentative of the industry. 

(b) Applicant organization imposes and shall hereafter impose 
no inequitable restrictions on membership therein. The Code pre- 
sented by it shall not be applied to permit or promote monopoly, to 
oppress or eliminate small enterprises, or to discriminate against 
them but to effectuate the policy of said Title I of the National 
Industrial Recovery Act. 

Article IV — ^Definitions 

The following terms, as used herein, unless otherwise clearly 
indicated by the context, are defined to have meanings respectively 
as follows : 

The term " Employer " means any person actively engaged in 
manufacturing and/or importing and/or marketing any of the 
products of the industry and trade either as employer or on his own 
behalf. 

(190) 



191 

The term " Employee " means any one who is employed by any 
such employer in any phase of the industry or trade as above de- 
fined irrespective of the nature or method of payment of his 
compensation. 

The term " President ", "Act ", and " Administrator " mean, re- 
spectively, the President of the United States of America, the 
National Industrial Recovery Act, and the Administrator of said 
Act. 

The term " Learner " means a youth having no previous experi- 
ence in the manufacture of packaging machinery and parts thereof, 
and whose employment as such shall not exceed four months of 
working time in the industry. The intent of the industry and trade 
under this definition is to cooperate with trade scliools. 

The term "Apprentice " means a person, usually a minor, who 
agrees to serve an employer for a certain stated period of time at 
predetermined wages for the period in order to learn the trade. 

The term " Population ", for the purposes of this Code, shall be 
determined by reference to the 1930 Federal Census. 

The term " Executive " shall mean any employee responsible for 
the management of a business, a department, or a recognized sub- 
division thereof. 

The term " Professional person " shall mean lawyers, doctors, 
nurses, research technicians, advertising specialists. 

The term " Outside Salesman " shall mean a salesman who is en- 
gaged not less than sixty (60) percent of his working hours outside 
the factory or office or any branch thereof by which he is employed. 

The term " Maintenance employee " shall mean any employee who, 
through special training or mechanical ability, is essential to the up- 
keep and/or preservation of the premises and property of the 
establishment, and shall not include such workers as porters, elevator 
operators, janitors, and cleaners. 

The term " Outside Service Employee " shall mean any employee 
when actually engaged in installing or servicing machinery and/or 
equipment and parts thereof outside the establishment. 

The term " Watchman " shall mean an employee engaged in safe- 
guarding the premises and property of the establishment. 

The term "Establishment" shall mean any factory, office, or depart- 
ment wherein the manufacture, importing, and/or marketing of pack- 
aging machinery and/or equipment and parts thereof is conducted. 

Article V — Employment 

(1) 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 em- 
ployee and no one seeking employment shall be required as a condi- 
tion 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 paA^ and other conditions of employment 
approved or prescribed by the President. 



192 

Article VI — Minors 

No emploj^er shall employ any person under the age of sixteen 
(16) years, nor anj^one under eighteen (18) years of age at opera- 
tions or occupations hazardous or detrimental to health. The Code 
Authority shall submit to the Administrator before January 1, 1934, 
a list of such occupations. In any state an employer shall be deemed 
to have complied with this provision if he shall have on file a cer- 
tificate or permit duly issued by the authority in such state empow- 
ered to issue employment or age certificates, showing that the em- 
ployee is of the required age. 

x^RTicLE VII — "Wages 

Section 1. (a) On and after the effective date the minimum wage 
that shall be paid by any employer to any employee engaged in the 
making of the products of the industry, and in labor operations 
directly incident thereto, shall be forty (40) cents per hour. It is 
agreed that this paragraph establishes a guaranteed minimum rate 
of pay regardless of whether the employee is compensated on the 
basis of a time rate or on a piecework performance. 

(b) On and after the effective date, the mininunn wage that 
shall be paid by any employer, to all other employees shall be not 
less than fifteen dollars ($15) per week in any city of over 500,000 
population or in the immediate trade area of such city, nor less than 
fourteen and a half dollars ($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 fourteen dollars ($14) per Aveek in any city 
or town of less than 250,000 population or in the immediate trade 
area of such city or town. 

Provided, however, that office boys or girls and learners (other 
than apprentices) may be paid not less than eighty (80) percent 
of such minimum wage, but the total number of such office boys or 
girls, and learners at such reduced rate shall not exceed in any 
calendar month five (5) percent of the total number of all employees 
covered by the provisions of this paragraph (b), provided that each 
emploA^er may employ a minimum of one office boy or girl and a 
minimum of one learner. 

(c) Nothing in this Article VII shall apply to, or affect, any 
employee apprenticed to any employer by an indenture made in pur- 
suance of the laws of any state of the United States, or by a writ- 
ten contract under an}' apprentice system established and maintained 
by an employer, provided such agreements are, and each additional 
agreement as made is, filed with the Code Authority, and provided 
that this exception shall apply to such employees only during the 
period that they are receiving less than the minimum rate. 

(d) Any employee who, by reason of physical disability or in- 
firmity is competent only for light employment shall be paid not 
less than eighty (80) percent of the minimum wage referred to in 
paragraph (a) of this Article VII, provided that a record of each 
case shall be filed with the Code Authority. 

(e) To the extent practicable, the wage rates of employees re- 
ceiving more than the minimum wage rate shall be equitably ad- 



193 

justed, and in no case shall they be decreased as a result of this 
adjustment of hours, so that existinjr diiferentials sliall be main- 
tained and, to the ext<'nt pi'acticabh', i'eco<inition shall be oivcn to 
the desirability of maintaining earnings, provided such adjustment 
has not already been made since June 10, 1933. 

Akticle VIII — Hours 

Section 1. (a) On and after the effective date, no employer shall 
employ any employee engaged in the making of the products of the 
industry, and/or in labor operations directly incident thereto, in 
excess of forty (40) hours per week or eight (8) hours in any 
twenty-four (24) hour period. 

(b) Provided further that these limitations of hours shall not 
apply to conditions of peak demand, for any department or depart- 
ments which create an unusual and temporary burden for produc- 
tion or installation; in such cases such number of hours may be 
worked as are required by the necessities of the situation; but not 
to exceed forty-eight (48) hours per week for eight (8) weeks in any 
calendar six (6) months' period, beginning October 1, 1933, and each 
April 1 and October 1 thereafter; provided further that in such 
special cases time and one half shall be paid for hours worked in 
excess of eight (8) hours in any one day or forty (40) hours in anj^ 
one week. 

(c) Provided further that the maximum hours fixed in Section 
1 (a) of this Article shall not apply to any employee on emergency 
maintenance or emergency repair work involving breakdowns or 
protection of life and property, but, in any such special case, time 
and one half his normal rate shall be paid for hours worked in excess 
of the maximum hours therein provided. 

(d) Provided further that these limitations of hours shall not 
apply to executives, professional persons, heads of administrative 
departments, factory and office supervisory staffs (not including 
foremen primarily engaged in productive work), and technical en- 
gineers (provided that no person receiving less than thirty-five 
($35.00) dollars per week shall be considered to come under any of 

the foregoing exempted classifications of this paragraph), outside 
service men and field salesmen, and watchmen, provided, however, 
that watchmen shall not work more than fifty-six (56) hours in any 
one week. 

Sec. 2. On and after the effective date of this Code, no employer 
shall work any accounting, clerical, office service, office sales, express, 
delivery, stockkeeping, or shipping employee in the industry more 
than forty (40) hours a week on a monthly average, nor more than 
^forty-eight (48) hours in any one week, except during the month of 
the annual audit. 

Sec. 3. 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 da}^ whether employed by one or more employers. 

Sec. 4. In determining his classification under this Code, each 
employee shall be entitled to claim the benefit of the classification of 
occupations existing on June 16, 1933. 

Sec. 5. Each employer shall post this Code in a conspicuous place 
in his establishment. 



194 
Artice IX — State Regulations 

"Within each state, this code shall not supersede the laws of such 
state imposing more stringent requirements, regulating the age of 
employees, wages, hours of work, or health, fire, or general working 
conditions, than under this Code. 

Article X — Code Authority 

Section 1. To further effectuate the policies of the Act, a Code 
Authority is hereby set up to cooperate with the Administrator in 
the Administration of this Code. 

Sec. 2. The Code Authority shall consist of the Code Committee 
of not more than five members (no two of whom shall be representa- 
tives of the same member) appointed by the Board of Directors of 
the Packaging Machinery Manufacturers Institute, Incorporated, to- 
gether with, if nonmembers so desire, two member,s of the industry 
and trade not members of the Institute; and one or more nonvoting 
appointees of the National Recovery Administration, if deemed 
necessary by the Administrator. 

Each trade or industrial association directly or indirectly partici- 
pating in the selection or activities of the Code Authority shall, 
(1) Impose no inequitable restriction,s on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
bylaws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem neces,sary to effectuate 
the purposes of the Act. 

In order that the Code Authority shall at all times be truly rep- 
resentative of the industry and trade, and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and, thereafter, if he ,shall find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, he may require 
an appropriate modification in the method of selection of the Code 
Authority. 

Sec. 3. Any member of the industry and trade is eligible for mem- 
bership in the Code and/or Institute and there shall be no inequitable 
restriction on such membership, and all members of the industry and 
trade subscribing to the Code or partitcipating in, or sharing in any 
way in the benefits of the activity of the Code Authority or partici- 
pating in the selection thereof, shall bear a proportionate amount of 
the expenses of administering and enforcing the Code and of mak- 
ing any amendments thereto, which proportion shall be based on the 
gross-sales volume (for the previous calendar year) of the packaging 
machinery as defined in Section I or Article II, and such funds shall 
be collected and adminstered by and through the machinery of the 
Institute. 

Sec. 4. With a view to keeping the President informed as to the 
observance or nonobservance of this Code, and as to Avhether tlie in- 
dustry and trade is taking appropriate steps to effectuate the 
declared policy of the Act, each member of the industry and trade, 
if and when required by the Administrator, shall prepare and file 



195 

with such person or organization as the Code Authority may desig- 
nate, and at such times and in such manner as the Code Authority 
may prescribe (to be held and used subject to the limitations of 
Article XI hereof), statistics of plant capacity, 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, and hours of work pertinent to the administra- 
tion of this Code. 

Article XI — Data Confidential 

Section 1. Except as otherwise provided in the Act, all statistics, 
data, and information filed in accordance with the provisions of the 
Code shall be confidential. 

Sec. 2. The statistics, data, and information of one member of the 
industry and trade shall not be revealed to any other member of the 
industry and trade, except, that, for the purpose of administering 
or enforcing the provisions of this Code, the Code Authority, by 
its duly authorized representatives (who shall not be in the employ 
of any member of the industry and trade aifected 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. 
However, such data shall be available to the Administrator on 
request. 

Sec. 3. In addition to the 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 Act. 

Article XII — Investigations 

Section. 1. Aggregation of members of the industry and trade 
having a common interest and common problems will be grouped 
by the Code Authority for administrative purposes into various 
product subdivisions. 

Sec. 2. In each product subdivision there may be a Sub -Code 
Authority approved, or appointed, by the Code Authority. If formal 
complaint is made to the Code Authority that provisions of this 
Code have been violated by any member of the industry and trade, 
the Code Authority or the proper Sub-Code Authority shall investi- 
gate the facts, and to that end may cause such investigation to be 
made as may be deemed necessary, and shall report the results of 
such investigation to the Code Authority. Any action taken by 
the Code Authority under this Article of this Code shall be subject 
to review, disapproval, or modification by the Administrator. 

Article XIII — Unfair Trade Practices 

Section 1. It shall be an unfair trade practice for a manufacturer, 
importer, agent, or dealer to allege that a competing machine and/or 
equipment and parts thereof violates any patent unless he shall have 
previously notified the alleged infringer in writing, setting forth 



196 

the grounds on which such alleged infringement is based and naming 
the patents alleged to be infringed. 

Sec. 2. It shall be an unfair trade practice to the full extent per- 
mitted by any existing patent laws for any manufacturer or im- 
porter or agent or dealer of packaging machinery and/or equipment 
or jDarts thereof to assume in any contract any obligation or liability 
in connection with patent infringement suits brought against the 
purchaser or user of the machinery and/or equipment or parts thereof, 
other than to assure the legal expense of suits charging that such 
machinery and/or equipment or parts thereof infringes, plus dam- 
ages or profits not to exceed the cost price of the machinery, and/or 
equipment or parts thereof directly involved in such suit. 

Sec. 3. Secret Rehates. — It shall be an unfair trade practice to 
make secret payment or allowance of rebates, refunds, commissions, 
credits or unearned discounts, whether in the form of money or 
otherwise, or the secret extension to certain purchasers of special 
services or privileges not extended to all purchasers on like terms and 
conditions. 

Sec. 4. Commercial Bribery. — It shall be an unfair trade practice 
directly or indirectly to give or permit to be given, or oiler to give, 
money or anything of value to agents, employees, or representatives 
of competitors or prospective customers, without the knowledge of 
their employers or principals, as an inducement to influence their 
employers or principals to purchase or contract to purchase from 
the makers of such gift or offer, or to influence such employers or 
principals to refrain from dealing or contracting to deal with 
competitors. 

Sec. 5. Interference with Contractual Relations. — It shall be an 
unfair trade practice maliciously to induce or attempt to induce the 
breach of any existing oral or written contract between a competitor 
and his customer or source of supply, or interfere with or obstruct 
the performance of any such contractual duties or services. 

Sec. 6. Misrefresentation or False or Misleading Advertising. — It 
shall be an unfair trade practice to make or cause or knowingly 
permit to be made or published any false, materially inaccurate, or 
deceptive statement by w^ay of advertisement or otherwise, whether 
concerning the grade, quality, quantity, substance, character, nature, 
origin, size, finish, or preparation of any product of the industry 
and trade, or the credit terms, values, policies, or services of any 
member of the industry and trade, or otherwise, having the tendency 
or capacity to mislead or deceive customers or prospective customers. 

Sec. 7, Particular product groups of competitors within the Pack- 
aging Machinery Industry and Trade may, witli the a])proval of the 
Code Authority and the Administrator and the President, establish 
supplementary codes of fair trade practices applying to their particu- 
lar products, covering such problems as costs, trade-in allowances, 
selling on trial basis, charges for installation, demonstration and 
service, and other problems. Such a supplementary code shall apply 
to all members of the particular product group within the industry 
and trade, on that part of their business covered by the product 
definition. 

Sec. 8. Where before June 16, 1933, the members of the industry 
and trade have contracted to purchase goods at a fixed price for 



197 

delivery diirin<^ the period of this a<j:reornent, the meml)ers of the 
industry and trade Avill make an ai)])r<)i)i-iate adjustment of said 
fixed price to meet any increase in cost caused by the seHer havin<; 
si<^ned the President's Reemi)loyment A<,a-eement or havin<^ becoine 
bound by any Code of Fair Competition approved by the President. 

Skc. 9". No" section of this Article XIII of this Code shall apply to 
sales outside of the United States of America. 

Sec. 10. Nothing in this Code shall limit the effect of any adjudi- 
cation by the courts or holdiufy by the Federal Trade Commission on 
complaint, finding, and order, that any practice or method is unfair, 
providing that such adjudication or holding is not inconsistent with 
any provision of the Act or this Code. 

Sec. 11. If any member of the industry and trade is also a mem- 
ber of any other industry and trade, the provisions of this article 
of this Code shall apply to, and affect, only that part of his business 
and product which is included in this industry and trade. 

Article XIV — Modification 

Tliis Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
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 
specifically, but without limitation, to the right of the President to 
cancel and modify his approval of this Code or any conditions im- 
posed by him upon his approval thereof. 

ApTicLE XV — Amendments Contemplated 

Section 1. (a) Such of the provisions of this Code as are not re- 
quired by the Act to be included herein, may, with the approval of 
the President, be modified or eliminated as changed circumstances or 
experience may indicate. 

(b) This Code is intended to be a basic Code. Study of the trade 
practices of the industry and trade will be continued by the Code 
Authority with the intention of submitting from time to time addi- 
tions to, or revisions of, or supplements to, this Code. 

(c) Any such amendments, additions, revisions, or supplements 
proposed Ijy the Code Authority and approved by the President shall 
be in full force and effect after such approval. 

Article XVI — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
M'ill be made impossible of consummation if prices of goods and serv- 
ices increase as rapidly as w^ages, it is recognized that price increases 
should be delayed and that when made, the same should, so far as 
reasonably possible, be limited to actual increases in the seller's costs. 

Article XVII — Effective Date 

This Code shall become effective and binding on all persons en- 
gaged in the industry and trade on the eleventh day after its approval 
by the President and shall not be otherwise effective. 

Aijproved Code No. 72. 
Registry No. 1399—30 

o 



Approved Code No. 73 
CODE OF FAIR COMPETITION 

FOR THE 

HAIR AND JUTE FELT INDUSTRY 

As Approved on October 31, 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 Hair and Jute Felt 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 com- 
petition 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 
com]ietition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

October 31, 1933. 

29939 296-173 34 (199) 



October 31, 1933. 
'Jo tlic l*in>iDi:x'i'. 

I. Introduction 

This is the report on the application for, and jiublic hearing on, 
a Code of Fair Competition for the Hair and Jnte Felt Industry 
as projiosed by the Hair and Jute Felt Manufacturers' Association. 

The hearing was conducted in Washington, D.C., on September 
29, 1933. Every person who requested an appearance was freely 
heard in accordance with statutory and regulatory requirements. 
The code was presented by duly qualified and authorized representa- 
tives of the industry complying with the statutory requirements as 
representing 90 percent of the volume of business and 83.33 percent 
of the number of establishments. 

II. Description of Industky 

The Hair and Jute Felt Industry is one of the small but distinct 
divisions of the textile field. 

At the present time this industry is composed of 17 members with 
a production of about $4,500,000, although the normal production 
would more likely approximate $9,000,000 annually. These 17 firms 
now employ in the neighborhood of 1,621 persons. 

Although the products are fabricated from the same raw materials 
used b}^ the textile industry generally, the productive machinery, as 
well as the competition, are different. Certain items are made by 
the punching process while others are made by hardening machines, 
or, again, bj' a combination of both. The chief competition is with 
cork, paper, Avood fibers, straw, and sea weed as insulation materials, 
with cork and paper in the gun-wad field, with rubber and celotex 
for automotive use. and with paper in the field of carpet lining. 
Only to a very limited extent is there any competition with cotton, 
wool. silk, rayon, or other textile fabrics. 

Seasonal trends and the production schedules of other industries 
exert considerable influence. For example, gun wadding reaches its 
peak during the early fall, while products for the automobile indus- 
try naturally follow the trend of output in that industry. 

At first glance it would seem that because hair and jute products 
are of a nonperishable nature a more even annual production could 
be obtained by manufacturing in anticipation of demand. There 
are several factors that make this course impractical. The raw ma- 
terials, as well as the finished products, are of an extremely bulky 
nature and would necessitate large storage facilities, which the 

(200) 



201 

industry does not possess and would not be justified in building. 
Also, the raw materials are subject to price fluctuations that would 
entail the danger of severe losses if sufficient inventories of finished 
or unfinished goods were stocked. 

Because of this, firms representing 95 percent of the productive 
capacity of the industry were opposed to any limitation of machinery 
hours and claimed that any restriction would work a severe hard- 
ship, either through loss of business or by the necessity for further 
plant investment. 

A group in the industry, small in both number and volume, wished 
to have productive machinery limited to two shifts of forty hours 
per week, which was not granted because it was felt that such a 
restriction would react to the detriment of the industry and the 
public alike. 

It is proper to point out that in normal times an important part of 
the Hair and Jute Felt Industry's products are used by the building 
trades for soundproofing and insulation purposes, as well as by the 
builders of railroad passenger and freight cars. Both of these in- 
dustries have been at low ebb for the last few years, but when the 
expected upturn in building construction and railroad replacement 
occurs, hair and jute felt manufacturers would be seriously handi- 
capped in supplying the requirements of these trades if their ma- 
chinery was hedged about with restrictions. 

Because of the entire lack of any competition with other branches 
of the textile industry, it is entirely appropriate that the Hair and 
Jute Felt Industry should be allowed to operate machinery on an 
unrestricted basis. 

III. Labor Provisions 

The industry proposes to pay a minimum wage of 350 per hour, 
with a maximum of 40 hours per week for labor. A tolerance of 
10 percent above this figure will be allowed for certain employees 
such as hair washers, dryers, and extractors, who will receive time 
and one third overtime for work in excess of 40 hours. 

This leeway was to avoid any possible spoilage of raw material, 
particularly hair, during preparatory processes. After the hair is 
received from the tannery, it is washed, and, once in the wet state, 
must be carried through other processes until dried and baled, be- 
cause if left wet, deterioration and spoilage would result. 

IV, Administration 

The provisions for administration of this code are capable of pro- 
viding the NRA and the Hair and Jute Felt Industry with suffi- 
cient data to make recommendations for the elimination of certain 
provisions of the code as herewith presented and/or the addition of 
further provisions to this code which would be beneficial to the indus- 
try as a whole. 

V. Conclusion 

I find that the code complies in all respects with the pertinent 
provisions of title I of the National Industrial Eecovery Act, includ- 



202 

ing, without limitation, subsection (a) of Section 7. and subsection 
(b) of Section 10 thereof. 

The Hair and Jute Felt Manufacturers' Association is truly repre- 
sentative of the Hair and Jute Felt Industry and the bylaws of this 
association provide no inequitable restrictions to membership. 

Accordingly, I hereb}^ recommend the approval of the Code of 
Fair Competition for the Hair and Jute Felt Industry. 

Respectfully submitted. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

HAIR AND JUTE FELT INDUSTRY 

Article I — Preamble 

To effectuate the policies of Title 1 of the National Industrial 
Recovery Act, the followin*? provisions are established as a Code of 
Fair Competition for the Hair and Jute Felt Industry and shall be 
the standard of fair competition for such industry and shall be 
binding upon every member thereof. 

Article II — Definitions 

(a) The term " industry ", as used herein, includes the manufac- 
ture of felt principally from hair and/or jute by the hardening 
and/or punching processes. 

(b) The term " employee ", as used herein, includes anyone 
engaged in the industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation. 

(c) The term " employer ", as used herein, includes anyone by 
whom any such employee is compensated or employed. 

(d) The term " member of the industry ", as used herein, includes 
anyone engaged in the industry, as above defined, either as an 
employer or on his own behalf. 

(e) The term " signatory of the code ", as used herein, means 
any member of the industry who shall voluntarily agree in writing 
as prescribed in Article VI, Section (c) hereof. 

(f ) The term " division ", as used herein, refers to the several parts 
of the hair and jute felt industry which are (or may be) established. 

(g) The terms '' President ", "Act ", and ''Administrator *', as used 
herein, shall mean respectively the President of the United States, 
the National Industrial Recovery Act, and the Administrator of 
said Act. 

Article III — Wages 

(a) No employee shall be paid at less than the rate of thirty-five 
(35) cents per hour. 

(b) Hourly wage rates for those receiving more than the mini- 
mums herein prescribed shall be adjusted to preserve differentials 
existing on March 1, 1933. 

(c) This Article establishes a guaranteed minimum rate of pay, 
regardless of whether the employee is compensated on a time or piece 
work basis. 

Article IV — Hours of Labor 

(a) No employee, except those in a managerial or executive capac- 
ity, who receives more than $35.00 per week shall be permitted to 

(203) 



'204 

work in excess of 40 hours in any one week, provided that a ten per- 
cent additional allowance in hours may be permitted in the case of 
repair-shop crews, firemen, engineers, electricians, outside crews, 
watchmen, cleaners, hair washers, dryers, extractors, and balers. 

(b) The maximum liours fixed in the foregoing section shall not 
apply to any employee on emergency maintenance or emergency 
repair work involving breakdowns or protection of life or property. 

(c) Any emergency time shall be reported monthly to the 
National Control Committee hereinafter provided. 

(d) The rate of pay for time in excess of forty (40) hours shall 
be one and one third {lYs) times the regular rate of jiay. 

Article V — Child Labor 

Employers in the hair and jute felt industry shall not employ 
any person under the age of sixteen years. 

Article VI — Administration 

(a) To effectuate further the policies of the Act, a National Control 
Committee is hereby designated to cooperate with the Administrator 
as a Planning and Fair Practice Agency for the Industry. This 
Committee shall consist of five (5) representatives of the industry 
elected by a fair method of selection, to be approved by the Admin- 
istrator and up to three (3) members without vote may be appointed 
by the Administrator. Such agency may present to the Administra- 
tor recommendations for the modification of the provisions of this 
Code, which will tend to effectuate the operation thereof and the 
policies of the Act. Such recommendations, when approved by the 
Administrator, after such notice and hearing as he shall deem 
proper, shall have the same force and effect as if originally incor- 
porated in and made a part of this Code. 

(b) Such agency is also set up to 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 to report the same to the Administrator. 

(c) Members of the industry who are complying with the require- 
ments of the Code and who agree in writing either individually, or 
through trade associations of which they are members, to abide by 
the requirements of the Code, and to pay their reasonable share of 
the expense of administration thereof shall be entitled to the benefits 
of the activities of the National Control Committee and to partici- 
pate in the selection of the members thereof. 

(d) The reasonable share of the expense of administration of the 
Code to be borne by the signatories of the Code shall be determined 
by the National Control Committee, subject to review by the Ad- 
ministrator on the basis of volume of business, and/or such other 
factors as may be deemed equitable to be taken into consideration. 

(e) 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 industry is taking appropriate steps to effectu- 
ate the declared policy of the Act, members of the industry shall 



furnish to the National Control Committee through its authorized 
accountant, in such form, and at such intervals as it may prescribe, 
subject to the api)roval of the Administrator, duly certified reports 
containing sucii information, reasonably pertinent to the effectua- 
tion of the purposes of this Code, as may be required by the Admin- 
istrator or by tlic National Control Committee subject to the approval 
of the Administrator. 

Such information or copies thereof shall be furnished to the 
Administrator upon his request. 

Totals and subtotals only shall be published, and shall be fur- 
nished to all members of the industry alike. 

(f) In addition to the information required to be submitted to 
the National Control Committee, there shall be furnished to Govern- 
ment agencies such statistical information as the Administrator may 
deem necessary for the purposes recited in Section 3 (a) of the Act. 

(g) The National Control Committee shall require that all mem- 
bers of the industry file lists of ]3rices and terms with the Secretary 
of the Hair and Jute Felt Manufacturers Association. Changes in 
price lists shall be with the Secretary at least forty-eight (48) hours 
before becoming effective. 

(h) The National Control Committee shall secure current infor- 
mation concerning the competition in domestic markets of imported 
liair and/or jute felt products, and if it shall find that such products 
are being imported into 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 provisions of Section 3 (e) of the Act and petition for suitable 
restrictions on the importation of such'hair and/or jute felt products. 

(i) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the National Control" Com- 
mittee shall: (1) Impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles of 
association, bylaws, regulations, and any amendments when made 
thereto,_ together Avith such other information as to membership, or- 
ganization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

(j) In order that the National Control Committee shall at all times 
be truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper ; and thereafter if he shall find that 
the National Control Committee is not truly representative or does 
not in other respects comply with the provisions of the Act, may 
require an appropriate modification in the method of selection of the 
National Control Committee. 

Article VII — Trade Practices 

The following practices shall constitute unfair methods of compe- 
tition for the industry, and are prohibited : 

(a) Sales heloio Gosi. — The selling or offering for sale of hair 
and/or jute felt products at prices below cost of production, except : 
(1) to meet competition, not instigated directly or indirectly by the 
party de^^iring to meet such competition, and '(2) to meet conipeti- 



20H 

tion ill violation of this rule concerning which lie has made com- 
plaint to the National Control Committee or any authorized agency 
thereof, but only pending- action thereon. This provision shall not 
be effective until the Administrator shall approve a method of cost 
accounting to be recommended b}' the National Control Committee. 

(b) /Sales hcloio PuhJishcd Prices. — Selling at prices below or 
on terms more favorable than those filed with the National Control 
Committee. 

(c) Sales of Nonstandard Gravies or CJass'/fications. — The selling 
or offering for sale of nonstandard grades or classifications of hair 
and/or jute felt for the purpose of evasion of the above Section (b). 
Standards shall be established by the National Control Committee, 
subject to approval by the Administrator. This shall not be inter- 
preted so as to prohibit the introduction or sale of any new types of 
hair and/or jute felt. 

(d) False Marking or Branding. — The false marking or branding 
of any product of the industry Avhich has the tendency to mislead 
or deceive customers or prospective customers, wdiether as to the 
grade, quality, quantity, substance, character, nature, origin, size, fin- 
ish, or preparation of any product of the industry, or otherwise. 

(e) Secret Rchates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts wdiether in the 
form of money, or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all purchasers 
on like terms and conditions. 

(f) Advertising. — The granting to a customer of any advertising 
allowance of any nature or in any form. 

(g) Subsidies. — The splitting or otherwise sharing by salesmen 
or other employees of their commissions or compensation with any 
present or prospective customer or customers' employees. 

(h) Merchandising Standards — 

(1) Weight of Merchandise. — To intentionally ship any customer 
merchandise which weighs substantially more or less than the average 
published weight. A tolerance of 71/4% over or under the specified 
weight will be allowed, but this must not be by design. On all price 
lists, advertising matter, etc., the average weight of each product 
shall be given in one weight only, and not a range of weights. 

(2) Seconds. — To protect the public against misleading and defec- 
tive merchandise, " seconds " of carpet and rug lining shall not be 
offered for sale. Seconds, as used herein, connotes merchandise of 
the same specification as regularly listed, which are sold at a con- 
cession because of defect. 

(3) Discontinued Lines. — Any member of the industry nuiy offer 
up to 10,000 square yards per calendar year of discontinued mer- 
chandise below cost or published price list ; provided he advises the 
Executive Secretary, w^ho shall notify all signatories of the Code, 
the nature, quantit3% and price of the merchandise thus offered. 

(i) Invoicings. — Fictitious invoicing of merchandise and the ship- 
ment of merchandise, which weighs substantially more or substan- 
tialh' less than the published weight. 

The omission from an invoice of any material item pertaining to 
the sale, such as allowance of overriding discount payable at some 
future date. 



207 

All goods shipped by a manufacturer to or for customers carried 
on his own boolcs shall be fully invoiced in tlie name of the customer 
to whom or for wliom the goods are shipped and by whom payment 
will be made to the manufacturer. No manufacturer shall invoice 
any customer for products other than those actually shipped against 
the invoice. 

Article VIII — General Provisions 

(a) No provisions of this Code shall be so applied as to promote 
monopolies or monopolistic practices or to eliminate, oppress, or 
iliscriminate against small enterprises. 

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

(c) Xo 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 

(d) Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed l)y the President of the United States. 

(e) This Code and all provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
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 spe- 
cifically but without limitation to the right of the President to cancel 
or mociify his approval of this Code or any conditions imposed by 
him upon his approval thereof. 

(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 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 
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. 

(g) Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements on employers regu- 
lating the age of employees, wages, hours of work, or health, fire, 
or general working conditions than under this Code. 

(h) Each employer shall post in conspicuous places full copies of 
this Code, 

Article IX — Effective Date 

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

Approved Code No. 73. 
Registry No. 232/1/03. 

o 



Approved Code No. 74 
CODE OF FAIR COMPETITION 

FOR THE 

TERRA COTTA INDUSTRY 

As Approved on October 31, 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 Terra Cotta Industry, and hearings 
having been held thereon and the Administrator having rendered 
his report containing an analj^sis of the said code of fair com- 
petition together with his recommendations and findings with re- 
spect 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 

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 is hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A d/tnimstrator. 

The White House, 

October SI, 1933. 

29940 ^296-174 34 (209) 



October 26, 1933. 
The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Terra Cotta Industry in the United States, conducted in 
Washington on September 26, 1933, in accordance with the provi- 
sions of the National Industrial Kecovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

This code provides for a maximum work week of forty hours, with 
the following exceptions: 

(a) Employees in supervisory, technical, or executive capacities 
receiving in no week less than $35.00, outside salesmen and watch- 
men; 

(b) Office and technical staff, who shall receive time and one- 
third for time over forty hours per week; draftmen, repair shop 
crews, engineers, electricians, outside crews, and cleaners, who shall 
receive time and one-third for time over forty-four hours per week; 
estimators and firemen, who shall receive time and one-third for 
time over forty-eight hours per week. 

This code provides for minimum rates of pay of thirty-five cents 
in the North and thirty cents in the South, regardless of whether 
an employee is compensated on a time rate, piecework rate, or other 
basis. 

It provides a minimum rate for watchmen of $15.00 per week. A 
person whose earning power is limited because of physical or mental 
defect, age, or other infirmity, may be employed at a wage below 
the above mentioned minima, if the employer obtains from the State 
Authority designated by the United States Department of Labor a 
certificate authorizing his employment at such wages and for such 
hours as shall be stated in the certificate. 

To the extent practicable, earnings shall not be decreased and 
rates of pay in excess of the minimum prescribed in tlie Code shall 
be increased so as to preserve equitable differentials. 

No person under sixteen years of age shall be employed and none 
under eighteen employed in any hazardous occupation. 

ECONOMIC EFFECTS OF THE CODE 

This industry is, at the present time, in a most serious condition. 
According to figures presented by the Code Committee, the sales 
for the first eight months of 1926 amounted to $14,057,082, whereas 
for the first eight months of 1933 they amounted to only $577,517, 
or approximately four percent of the 1926 figure. 

In view of the present low volume of business in this industry, it 
is doubtful whether the adoption of this code will result in a large 
immediate increase in employment. If the industry were to return 
to normal volume of business, the code would result in an increase 

(210) 



211 

of over 20 percent in the number of men employed and close to 
$1,500,000 in annual payroll, according to figures presented by the 
Code Committee. 

The minimum wage rates specified represent an increase over min- 
imum wage rates, now prevailing within the industry, of from 75 
percent to 100 percent in the North and of approximately 150 percent 
in the South. For an industry, in the condition in which this one 
finds itself, to go so far is evidence of a very fine spirit of cooperation. 

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 limit- 
ation, 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 
Terra Cotta 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 Kecovery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

TERRA COTTA INDUSTRY 

Article I — Purpose 

To effectuate the policy of Title I of the National Industrial Re- 
covery 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 rehabilitating the Industry, 
the following provisions are submitted as a Code of Fair Competi- 
tion for the Terra Cotta Industry; and upon approval by the Presi- 
dent shall be the standard of fair competition for such Industry and 
shall be binding upon every member thereof. 

Article II — Definitions 

A. The term " Industry " as used herein is defined to mean the 
manufacture for sale of hand-made architectural terra cotta and/or 
machine-made terra cotta wall facing of the type fabricated by 
architectural terra cotta manufacturers for use in the erection and 
construction of buildings. 

B. The term " Employee " as used herein shall include anyone 
engaged in the Industry as hereinabove defined in any capacity re- 
ceiving compensation for his services, irrespective of the method of 
payment of such compensation. 

C. The term " Employer " as used herein includes anyone by whom 
such employee is compensated or employed. 

D. The term " District " as used herein means a geographical 
district of the United States as established by the Code Authority. 

E. The term " North " as used herein means all territory in the 
United States except that listed below under " South." 

F. The term " South " as used herein means the following States : 
Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Missis- 
sippi, North and South Carolina, Oklahoma, Tennessee, Texas and 
Virginia. 

G. The term " Bid " as used herein means a lump sum estimate 
and proposal of a terra cotta manufacturer to furnish to an owner 
or to a general contractor or to a subcontractor for masonry, the 
terra cotta required for a particular building project, according to 
the drawings of the architect and the specifications for such building. 

H. The terms " President ", "Act ", and "Administrator " as used 
herein shall mean respectively the President of the United States, 
the National Industrial Recovery Act, and the Administrator of 
said Act. 

I. The term " Effective Date " as used herein shall mean the second 
Monday after the approval of this Code by the President. 

(212) 



218 
Article III — Labok 

A. Wru/es. — 1. On and after the effective date, except as herein- 
after set forth, no employee shall be paid at less than the rate of 
thirty-five (35) cents per" hour in the North and thirty (30) cents 
per hour in the South, 

2. The foregoing paragraph of Section A establishes a minimum 
late of pay regardless of whether an employee is compensated on a 
time rate, piecework rate, or othei- basis, 

3. To the extent practical)le, earnings shall not be decreased and 
rates of pay in excess of the minimum herein prescribed shall be 
increased so as to preserve equitable differentials, 

4. Watchmen either in the plant or office shall be paid not less 
than $15.00 per week. 

5. A person whose earning power is limited because of physical or 
mental defect, age, or other infirmity, may be employed at a wage 
below the minimum set by the Code, if the employer obtains from 
the State Authority designated by the United States Department of 
Labor a certificate authorizing his employment at such wages and 
for such houis as shall be stated in the certificate. State Authorities 
will be guided by the instructions of the United States Department 
of Labor in issuing certificates to such persons. 

B. Hours. — 1. On and after the effective date, no employee shall 
work or be permitted to work in excess of forty (40) hours in any 
one week. 

2. The provisions of the foregoing paragraph of Section B shall 
not apply to employees in supervisory, technical, or executive capaci- 
ties, receiving in no week less than $35.00, or to outside salesmen, 
watchmen, and janitors, or to the following employees: 

(a) Estimators, who may work not to exceed forty -eight (48) 
hours i)er week, with payment of time and one-third for overtime 
thereafter. 

(b) Draftsmen, who may work not to exceed forty-four (44) 
hours per week, with payment of time and one-third for overtime 
thereafter. 

(c) Office and technical staff, who may work not to exceed forty 
(40) hours per week, with payment of time and one-third for over- 
time thereafter. 

(d) Firemen, who may work not to exceed forty-eight (48) hours 
per week, Avith payment of time and one-third for overtime there- 
after. 

(e) Repair-shop crews, engineers, and electricians, outside crews 
and cleaners, who may work not to exceed forty-four (44) hours per 
week, with payment of time and one-third for overtime thereafter. 

3. No employer shall knowingly engage any employee for any 
time which, when totaled with that already performed with another 
employer or employers, exceeds the maximum permitted herein. 

C. Child Labor. — No person under sixteen (16) years of age shall 
be employed in the Industry, nor anyone under eighteen (18) years 
of age at operations or occupations hazardous in nature or detri- 
mental to health. The Code Authority shall submit to the Admin- 
istrator before January 1, 1934, a list of such occupations. In any 
State an employer shall be deemed to have complied with this pro- 



214 

vision if he shall have on file a certificate or permit duly issued by 
the authority in such State empowered to issue employment or age 
certificates or permits, showing that the employee is of the required 
age. 

D. Classification. — Employers shall not reclassify employees or 
duties of occupations performed by employees so as to defeat the 
purposes of the Act. 

E. Stahility of Eviploynient. — An employer shall so administer 
work in his charge as to provide a maximum practicable continuity 
of employment for his personnel. 

F. Related Laws. — ^Within each State this Code shall not super- 
sede any laws of any governmental authority imposing more strin- 
gent requirements on employers regulating the age of employees, 
wages, hours of work, or health, fire, or general working conditions 
than under this Code. 

G. Posting of Code. — Each employer shall post in conspicuous 
places in each department full copies of this Code. 

H. Statutory Provisions. — 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. 

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. 

3. Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, ap- 
proved or prescribed by the President. 

Article IV — Reports 

A. With a view to keeping the President informed as to the 
observance or nonobservance of this Code of Fair Competition, and 
as to whether the Industry is taking appropriate steps to effectuate 
the declared policy of the Act, and in order to effectuate the declared 
policy of the Act, and with a view to keeping each manufacturer 
appropriately informed respecting the Industry, each employer in 
the Industry shall furnish to the Code Authority, or to such agency 
as the Code Authority may hereafter designate, duly certified re- 
ports in substance as follows, and in such form as may hereafter be 
prescribed. 

1. Wages and Hours of Labor. — Returns every four weeks show- 
ing actual hours worked by the various occupational groups of em- 
ployees and minimum weekly rates of wage. 

2. Reports on Orders. — Weekly returns showing orders taken in 
terms of the commonly used units; i.e., tonnage and net dollars of 
each such order. 

3. Bids or Estimates. — Daily or current record of bids submitted. 

B. The National Terra Cotta Manufacturers' Association is in- 
itially constituted the agency, directly and through its district offices. 



215 

to collect, to receive, and to disseniinatc such reports. Such Agency 
and/or the Code Authority shall make reports to the Administrator 
at such times and concerning such conditions in tlie Industry, or 
any other matters pertinent to this Code or to the Act, as he may 
prescribe. 

In addition to the information required to be submitted as herein- 
above set forth, employers shall furnish to government agencies such 
statistical information as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act. 

Article V — Arbitration 

All members of the National Terra Cotta Manufacturers' Asso- 
ciation, and such other members of the Industry as may hereafter 
have subscribed to this Article of this Code, shall submit any ques- 
tions and/or controversies between members of the Industry or 
districts thereof arising out of conditions in the Industry or out of 
the operation of the provisions of this Code to determination, sub- 
ject to review by the Administrator, by an arbitration board, ap- 
pointed by a committee consisting of the President, the three Na- 
tional Vice Presidents, the National Treasurer, the National Secre- 
tary, and the three executive committee me^ibers of the National 
Terra Cotta Manufacturers' Association. As a condition precedent 
to such arbitration, such members or Districts shall obtain a certifi- 
cate from the Code Authority or, if the controversy be confined to 
members within the same district, a certificate from the designated 
agency of the Code Authority within that district, that the subject 
matter of the controversy is appropriate for arbitration. Such com- 
mittee shall appoint such arbitration boards upon request of any 
member of the Association or of any member of the Industry who 
has subscribed to the provisions of this Article or upon the request 
of any District of the Industry; provided, however, that the pro- 
visions of this Article shall not be construed as inconsistent with 
any provisions of the Act or with such rules or regulations as the 
Administrator may, in accordance with law, prescribe. 

Article VI — Administration 

A. To effectuate further the policies of the Act, a Code Authority, 
consisting of three members of the Industry, or of such other number 
as may be approved from time to time by the Administrator, elected 
by members of the Industry by fair methods of election, is hereby 
established to cooperate with the Administrator as a planning and 
fair practice agency for the Industry. The National Terra Cotta 
Manufacturers' Association is hereby designated as the agency to 
conduct such election and the Code Authority so elected is hereby 
designated as the agency to promote the purposes of this Code. 
Such election shall be conducted within sixty days from the effective 
date of this Code and the term of office shall be for the period termi- 
nating on August 16, 1935, The Administrator, if he so elects, may 
appoint not more than three additional nonvoting members of the 
Code Authority to serve as his representatives or as representatives 
of such interested groups as he may designate. 



216 

B. In order that the Code Authority shall at all times be truh'- 
representative of the Industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such hear- 
ings as he may deem proper ; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act may require an appro- 
priate modification in the method of selection of the Code Authority. 

C. The Code Authority shall have the following duties and powers 
to the extent iDermitted by the Act, subject to the right of the Ad- 
ministrator on review, to disapprove or modify any action taken 
by the Code Authority pursuant to this Code. 

(1) The Code Authority shall be the general planning, coordinat- 
ing, and administering agency of this Code. It may make such rules 
and regulations as may be necessary for the administration of this 
Code. 

(2) The Code Authority may prepare and adopt for the Industry, 
after the approval thereof by the Administrator, a uniform system 
or method of estimating job costs, which system or method shall 
specify the items to be included in determining cost. After the 
adoption and approval of such sj^stem or method, as hereinabove pro- 
vided, each member of the Industry shall keep accounts and records 
in such manner as will clearly indicate the information required 
for the purpose of estimating job costs as referred to above. 

D. The Code Authority may from time to time present to the 
Administrator recommendations based on conditions in the Indus- 
try as they may develop from time to time which will tend to effec- 
tuate 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 Administra- 
tor of such further reports from persons engaged in the Terra Cotta 
Industry of statistical information and keeping of uniform accounts 
as may be required to secure the proper observance of the Code and 
permit the proper balancing of production and consumption, and the 
stabilization of the Industry and employment. 

(2) Recommendations for changes in, or exemptions from, the pro- 
visions of this Code as to the working hours which wdll tend to pre- 
serve a balance of productive activity with consumption requirements 
so that the interests of the Industry, employees, and the public may 
be properly served. 

(3) Recommendations as to unfair methods, conditions of trading^ 
and destructive practices to promote the stabilization of the Industry 
and to prevent and eliminate unfair and destructive practices, 

(4) Recommendations for dealing with such other matters as may 
seem advisable to effectuate the purposes of the Act. 

E. Such recommendations, when approved by the Administrator, 
after such hearing as he may prescribe, shall have the same force and 
effect as any other provisions of this Code. 

F. The Code Authority is also established 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 at the request of the Administrator or on complaint of any person 
affected, and to report the same to the Administrator. 



217 

G. The Code Authority may make such studies, as m its judgment 
will promote safe, healthful, and otherwise satisf actoi-y working con- 
ditions for employees in the Industry. 

H. The Code Authority may designate governing agencies in dis- 
tricts of the Industry for the administration of this Code in such dis- 
tricts, and the memlDers of such district governing agencies shall be 
persons, either members of the Industry or bona fide employees of 
such members, elected by the members of the Industry in such Dis- 
tricts; the Code Authority may delegate to such agencies such of its 
powers and authority as may be necessary for the administration of 
this Code within such districts, including the right to submit to the 
Administration recommendations for Code provisions applicable only 
to such districts, within the scope of the powers granted under this 
Code but the Code Authority shall reserve the power and duty to 
administer the provisions of this Code. 

I. Where the costs of executing contracts entered into by members 
of the Industry prior to June 16, 1933, are increased by the applica- 
tion of the provisions of the Act to the Industry, it is equitable and 
promotive of the purpose of the Act that appropriate adjustments 
of such contracts to reflect such increased costs be arrived at, with 
the consent of the parties to such contract, by arbitral proceedings or 
otherwise, and the National Terra Cotta Manufacturers' Association 
is constituted an agency to assist in effecting such adjustments. 

Article VII — Amendments 

A. 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 Re- 
covery 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, but without limitation, to the right of the 
President to cancel or modify his approval of any provision of this 
Code or any conditions imposed by him upon his approval thereof. 

B. This Code, except as to provisions which are required to be 
included therein b}^ the Act, may be modified on the basis of expe- 
rience or changes in circumstances, such modification to be based 
upon application to the Administrator, and such notice and hearing 
as he shall specify, and to become effective on approval of the 
President. 

C. It is contemplated that from time to time supplementary provi- 
sions 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 competitive practices and to effectuate 
the other purposes and policies of Title I of the Act consistent with 
the provisions hereof. 

Article VIII — Membership 

The National Terra Cotta Manufacturers' Association shall — 

(1) Impose no inequitable restrictions on membership; and 

(2) Submit to the Administrator true copies of its articles of 
association, by-laws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 



218 

organization, and activities as the Administrator may deem necessary 
to effectuate the purpose of the Act. 

Article IX — Monopolies 

This Code shall not be construed, interpreted, or applied so as to 
promote or permit monopolies or monopolistic practices, and shall 
not be availed of for that purpose. The provisions of this Code 
shall not be so construed, interpreted, or applied as to eliminate or 
to oppress or to discriminate against small enterprises, nor shall the 
conduct of the Industry and of the several members thereof be such 
as to eliminate or to oppress or to discriminate against small enter- 
prises. 

Article X — Coordination 

The Code Authority may cooperate in the formulation of a basic 
code of fair competition or of an agreement pursuant to the Act, for 
producers of construction materials and may likewise cooperate in 
the coordination of its activities under this Code with the activities 
of any administrative agency or agencies established pursuant to any 
such basic code or agreement, or pursuant to any order issued under 
the Act. 

Article XI — Effective Date 

This Code shall become effective on the effective date. 

Approved Code No. 74. 
Registry No. 1041/01. 



Approved Code No, 75 

CODE OF FAIR COMPETITION 

FOR THE 

CANNING AND PACKING MACHINERY INDUSTRY 

As Approved on October 31, 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 tlie National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Canning and Packing Machinery Indus- 
try, and hearings having been held thereon and the Administrator 
having rendered his report containing an analysis of the said code 
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. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 
The White House, 

October 31, 1933. 

29913 296-175 34 ( 219 ) 



October 23, 1933. 
The President, 

Tlie 'White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Canning and Packing Machinery Industry in the United 
States, conducted in Washington on October 11, 1933, in accordance 
with the provisions of the National Industrial Kecovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

No person under eighteen (18) years of age shall be employed on 
work of a hazardous nature, and no person under sixteen (16) years 
of age shall be employed in this industry. 

A minimum wage rate of 40 cents per hour is established for fac- 
tory employees unless the rate on July 15, 1929 was lower, in which 
case the rate per hour shall not be less than the rate then paid, 
provided, however, that in no event shall the rate be less than 32 cents 
per hour. 

The minimum wage paid to any other employee shall not be less 
than $15.00 per week in any city or trade area of over 500,000 popu- 
lation; not less than $14.50 in any city or trade area of between 
250,000 and 500,000 population ; and not less than $14.00 in cities or 
towns of less than 250,000 population. 

Office boys and girls, not exceeding 5 percent in number of the 
total office force of any employer, may be paid not less than 80 
percent of the minimum weekly wage. 

Existing wage differentials above the minimum shall be main- 
tained as far as practicable, and in no case shall the wage rate, 
whether on an hourly, weekly, or monthly basis be reduced. 

Existing or future apprenticeship contracts shall be filed with the 
Code Authority. 

40 hours is established as the maximum week. 

Exceptions cover executives, professional persons, heads of admin- 
istrative departments, technical engineers, and the immediate as- 
sistants of all the foregoing classifications, factory and office super- 
visory staffs, who receive more than $35.00 per week, outside service 
men, salesmen, and watchmen, provided that watchmen shall in no 
case work more than 56 hours during any one week. 

It is further provided that in case of emergency when delay would 
result in the loss of perishable animal, fruit, or vegetable products 
a tolerance of 20 percent over 40 hours may be worked, but such 
extra time must be averaged down to 40 hours during any six months' 
period. 

Emergency installation and stores service employees during the 

inning season are permitted to work extra hours and if the available 

supply of skilled employees in any particular area is absorbed, such 

(220) 



221 

departments as may be affected may also be permitted to exceed the 
schedule. 

Shipping clerks, stock clerks, and firemen are allowed a tolerance 
of 10 percent. 

ECONOMIC EFFECT OF THIS CODE 

This industry is operating at about 30 percent of capacity and has 
suffered severely during the depression. Employment will be in- 
,creai-ed at least 20 percent and pay rolls increased approximately 
27 percent. This is effected through operating on the shortened 
schedule of hours provided in this Code. Under normal conditions 
the industry has worked as high as 60 hours per week during peak 
production with annual averages of 45 hours per week. 

Very little machinery can be built for stock and a large proportion 
must be assembled under emergency conditions, sales of new equip- 
ment to a large extent depending on any surplus vegetable, fruit, or 
animal products which might otherwise deteriorate. 

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 
Canning and Packing Machinery 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 approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

CANNING AND PACKING MACHINERY INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Canning and Packing Machinery Industry 
and shall be binding upon every member thereof. 

Article II — Definitions 

" Industry " as used herein means the Canning and Packing Ma- 
chinery Industry, which embraces the manufacture for sale or sale 
in the open market and within the United States of America or its 
territories of canning machinery used for the preparation and 
processing of foods for human or animal consumption; machinery 
used for the manufacture of cans and containers for such foods; 
machinery used for the preparation and packing of fresh fruits and 
vegetables; machinery used for the dressing, processing, and pack- 
ing of animal, poultry, and fish products, whether intended for final 
sale in fresh, frozen, or canned form; and machinery used for the 
processing and packing of dried or dehydrated fruits and vegetables 
and parts thereof. 

The term " employee " as used herein includes anyone engaged 
in the industry in any capacity receiving compensation for his serv- 
ices, irrespective of the nature or method of payment of such 
compensation. 

The term " employer " as used herein includes anyone by whom any 
such employee is compensated or employed. 

The term " member of the industry " includes anyone engaged in 
the industry as above defined, either as an employer or on his own 
behalf. 

The terms " President "', "Act ", and "Administrator " as used 
herein shall mean respectively the President of the United States, 
the National Industrial Recovery Act, and the Administrator of 
said Act. 

Population for the purposes of this Code shall be determined by 
reference to the 1930 Federal Census. 

The term " Institute " as used herein means the Canning and 
Packing Machinery Institute, or any committee, or section thereof, 
to whom it has delegated authorit3^ 

The term " Code Authority " as used herein means the supervising 
and administering body charged with representing the Industry and 
the Administrator in promulgating the rules governing the operation 
of the Industry under this Code. 

The term " effective date " as used herein means the eleventh day 
after the approval of this Code by the President. 

(222) 



223 I 

Articlk III — Employmknt 

(a) (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; (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 maximum 
hours of labor, minimum rates of pay, and other conditions of 
employment, approved or prescribed by the President. 

(b) This Code establishes a minimum rate of pay. regardless of 
whether an emplo3'^ee is compensated on a time-rate, piece-work, or 
other basis. 

(c) Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male 
employees. 

(d) No employer shall engage any employee for any time which, 
when totaled with that already performed with another employer, or 
employers, exceeds the maximum permitted herein. 

(e) No employer shall operate on other than a schedule of 6 days 
work in seven except in cases of emergency. 

(f ) Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements on employer regu- 
lating the age of employees, wages, hours of work, or health, fire, 
or general working conditions than under this Code. 

(g) Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the Act. 

(h) Each employer shall post in conspicuous places full copies 
of this Code. 

Article IV — Minors 

No person under sixteen (16) years of age shall be employed by 
any employer and where State laws require higher wages or shorter 
hours of employment, such requirements shall be complied with in 
such States. No minor under the age of eighteen (18) years shall be 
einployed on any power-driven, wood-working or metal-working ma- 
chinery or in hot or cold forging processes or in any other occupa- 
tion determined by the Code Authority to be hazardous provided, 
however, that on complaint the Administration may review and dis- 
approve or modify such determination. 

Article V — Wages 

(a) On and after the effective date the minimum wage that shall 
be paid by any employer to any factory employee engaged in the 
Industry, and in labor operations directly incident thereto, shall be 
not less than forty (40) cents per hour unless the rate per hour for 
the same class of labor on July 15, 1929, was less than forty (40) 



224 

cents in which case the rate per hour paid shall be not less than the 
rate per hour paid on July 15, 1929, and provided that in no event 
shall the rate per hour paid be less than thii-tj'-two (32) cents per 
hour. 

(b) On and after the effective date, the minimum wage that shall 
be paid by any employer, to all other emploj^ees shall be not less 
than fifteen dollars ($15) per week in an}^ city of over 500,000 popu- 
lation or in the immediate trade area of such city, nor less than four- 
teen and a half dollars ($14.50) per week in any city of between 
250,000 and 500,000 population or in the immediate trade area of 
such cit}^, nor less than fourteen dollars ($14) per week in any city 
or town of less than 250,000 population or in the immediate trade 
area of such city or town. 

Provided, however, that office bovs or girls (other than appren- 
tices) may be paid not less than eighty (80) percent of such mini- 
mum wage, but the total number of such office boys or girls at such 
reduced rate shall not exceed in any calendar month five (5) percent 
of the total number of all employees covered by the provisions of 
this paragraph (b), provided that each employer may employ a 
minimum of one office boy or girl. 

(c) To the extent practicable, the wage rates, whether on an hourly, 
weekly, monthly, or piecework basis, of employees receiving more 
than the minimum wage rates shall be equitably adjusted, and in no 
case shall the aforesaid wage rate and/or rates be decreased as a 
result of this adjustment of hours, so that existing differentials shall 
be maintained and, to the extent practicable, recognition shall be 
given to the desirability of maintaining earnings, provided such ad- 
justment has not already been made since June 16, 1933 ; further, each 
employer shall report action taken under this section to the Code 
Authority. 

(d) Nothing in this Article V shall apply to, or affect, any em- 
ployee apprenticed to any employer by an indenture made in pursu- 
ance of the laws of any state of the United States, or by a written 
contract under any apprentice system established and maintained by 
any employer, provided such agreements are, and each additional 
agreement as made is, filed with the Code Authority, and provided 
that this exception shall apply to such employees only during the 
period that they are receiving less than the minimum rate. 

(e) Any employee who, by reason of disability or infirmity, is com- 
petent only for light employment shall be paid not less than eighty 
(80) percent of the minimum wage referred to in paragraph (a) of 
this Article V, provided that a record of each case shall be filed with 
the Code Authority. 

Article VI — Hours 

Section 1. (a) The proponents of the code represent that the 
demand for canning and packing machinery is subject to fluctua- 
tions not believed to prevail in many other industries and that 
there is but one customer for these machines, the canner or packing 
house or farmer who uses the same, and the ability of this customer 



225 

to buy is conditioned upon the price, quality, and quantity of the 
various crops. The demand, even in periods of comparative prosper- 
ity, is greatly varied and often obliterated by unforeseeable weather 
conditions, pests, or plant diseases such as drought, hail, and tor- 
nadoes, or the prevalence of corn borers, aphis, blight, coddling 
motlis, and the like. Probably 75% of the variations in yields is 
due to such or similar causes. An emergency demand for certain 
machinery is often created by the same conditions. For example, 
the failure of a crop in one section of the country may result in a 
substantial increase in late plantings in another section, and to care 
for the handling of the same, machinery must be provided almost 
overnight. 

(b) While this Industry recognizes and sympathizes witli the 
ideal of a limited work day and work week and believes that 8 
hours per day and 5 days per week is desirable, yet it is impossible 
to adopt such limitations in meeting the requirements of the proces- 
sors of perishable food products, as a considerable variation in fac- 
tory hours has always been essential and must be permitted. 

Sec. 2. (a) No employer shall employ any employee in excess 
of forty (40) hours per week. 

(b) Provided, that these limitations of hours shall not apply to 
executives, professional persons, heads of administrative depart- 
ments, technical engineers, and the immediate assistants of all the 
foregoing classifications, factory and office supervisory staffs, not in- 
cluding foremen primarily engaged in productive work, provided 
that no person receiving less than thirty-tive ($35.00) dollars per 
week shall be considered to come under any of the foregoing ex- 
empted classifications of this paragraph, outside service men and 
traveling salesmen, and watchmen, provided, however, that watch- 
men shall not work more than fifty-six (56) hours in any one week. 

(c) Provided, further, in order to meet any emergency demands 
where the delay in furnishing equipment might result in the loss of 
perishable animal, fruit, or vegetable products a tolerance of not 
more than 20% in the number of hours worked may be permitted, 
but in no case shall the time worked exceed 40 hours per week on 
a six-month average and further provided that all such emergencies 
be reported to the Code Authority and such information made avail- 
able to the Administrator. 

(d) Provided further, that these limitations shall not apply to 
highly skilled employees engaged in emergency installation work 
nor to stores service employees during active canning and/or packing- 
seasons, nor when the available supply of emplo^^ees in any certain 
skilled trade within a locality or trade area have been absorbed into 
the industry, but in all such emergencies the Administrator shall be 
advised; provided further, as to employees engaged in the care of 
plant and production facilities, firemen, and stock and shipping 
clerks there shall be a tolerance of 10 percent. 

(e) For the purpose of adjusting operations to comply with the 
six months' average requirement, any employer may adopt for each 
location such six-month period as is most appropriate for the business 
there conducted. 



226 

Article VII — Administration 

1. To further effectuate the policies of the Act, a Code Authority 
is hereby constituted to cooperate with the Administrator in the 
administration of this Code. 

(a) The Code Authority shall consist of the Executive Committee 
of the Institute. In addition, its membership may include two (2) 
nonmembers of the Institute elected by some fair method of selection 
by the nonmembers, and upon his request not more than three (3) 
nonvoting appointees of the Administrator. 

(b) Each trade or industrial association directly or indirectly 
participating in the selection of activities of the Code Authority 
shall: (1) Impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of asso- 
ciation, bylaws, regulations, and any amendments when made there- 
to, together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem necessary to 
effectuate the purposes of the Act. 

(c) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter if he shall find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, may require 
an appropriate modification in the method of selection of the Code 
Authority. 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator on review to disapprove or modify any action taken by the 
Code Authority. 

(a) To collect from employers in the Industry all data and sta- 
tistics required by this Code or by the President or his agents under 
the National Recovery Act and make same available to the Admin- 
istrator; provided, however, that such information shall be confi- 
dential except insofar as disclosure may be necessary for the effec- 
tive administration and enforcement of this Code, and in no case 
shall the data and statistics furnished by any employer be revealed 
to the competitor of said employer. 

(b) 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 neces- 
sary for the purposes recited in Section 3 (a) of the National Indus- 
trial Recovery Act. 

(c) To represent the Industry in conferring with the President 
or his agents with respect to the Administration of this Code and in 
respect of the National Industrial Recovery Act and any regulation 
issued thereunder. 

(d) To hear complaints and attempt to adjust the same and re- 
port the results thereof to the Administrator. 

(e) To coordinate the administration of this Code with such 
Codes, if any, as may be adopted by any subdivision of this Industry 
or any related Industry, with a view to providing joint and harmo- 
nious action on all matters of common interest, all with the approval 
of the National Recovery Administration. 



227 

(f) Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. The 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to review by the Administra- 
tor, on the basis of volume of business and/or such other factors as 
may be deemed equitable to be taken into consideration. 

(g) No employer shall use any subterfuge to frustrate the spirit 
and intent of the purposes of this Code, which is, among other 
things, to increase employment, to remove obstructions to commerce, 
and to shorten hours and raise wages for the shorter week. 

(h) Aggregations of employers having a common interest and 
common problems may be grouped by Code Authority for adminis- 
trative purposes into various subdivisions or product classifications, 
and such subdivisions shall be subject to review by the Administrator. 

(i) In each subdivision or product classification there may be a 
subsupervisory Authority approved or appointed by Code Authority 
subject to the approval of the Administrator. If formal complaint 
is made that provisions of this Code have been violated by any em- 
ployer, Code Authority may delegate the proper subsupervisory Au- 
thority to investigate the tacts, or may cause such investigation to 
be made as it may deem necessary, and the results of said investiga- 
tion shall be reported to the Administrator. 

Article VIII — Accounting and Costing 

Every employer shall use an accounting system which conforms 
to the principles of and is at least as detailed and complete as a 
standard method of accounting and a standard method of costing to 
be formulated or approved by Code Authority with such variations 
therefrom as may be required by the individual conditions affecting 
any employer or group of employers, and which standards shall be 
subject to the approval of the Administrator. 

Article IX — Not To Sell Below Cost 

In recognition of the fact that the Industry has suffered from non- 
profit sales no employer shall sell or exchange any product of the 
Industry manufactured by him at a price or upon terms and con- 
ditions which will result in the purchaser paying for the goods 
received less than the cost thereof to the employer as determined 
in accordance with the method of costing described in Article VIII ; 
provided, that dropped lines, or seconds, or inventories which must 
be converted into cash to meet emergency needs may be disposed 
of by any employer at any lesser price and on any terms and condi- 
tions, but all such sales shall be reported to the Code Authority; 
provided further, should subnormal conditions continue a member 
of the Industry with the approval of the Administrator may take 
his costs prevailing during the last year in which such individual 
employer made a profit as cost for the purpose of this Section. 



228 

Upon new machines developed since the aforesaid profit j'ear over- 
head rates used in said profit jear shall be used unless actual cost 
figures thereon shall be filed with the Code Authority. 

Article X — Price Lists 

(a) Each employer in the Industry shall immediately file with 
Code Authority or with some other responsible, disinterested agent 
designated by it at such place as shall be determined, a confidential 
net price list and discount sheet independently prepared by such 
employer, showing his current prices and discounts and terms of 
payment, and no sales shall be made except upon such price lists. 
Any change price lists and discount sheets shall be similarly filed 
from time to time thereafter, to become effective upon a date speci- 
fied therein, which shall not be less than ten days after the same shall 
be so filed, except that upon machines newly designed and/or in- 
vented the price list therefor shall become effective immediately upon 
same being offered for sale and the price list filed within five days 
thereafter. No employer in the Industry shall sell any product re- 
ferred to therein for any other prices or upon any other discounts 
or better terms than as set forth in his last net price list and discount 
sheet filed as herein provided. 

(b) Included in such deposited price list shall be a schedule of 
installation charges, setting forth the rates to be charged for such 
work, including traveling and living expense. 

(c) At its discretion, and upon the approval of the Administrator, 
Code Authority may appoint an Auditor who shall not be an em- 
ployee of any employer to visit the various employers' offices, check 
the sales records as compared to the aforesaid deposited price lists, 
terms, and discount sheets, and report his findings to it. 

(d) Code Authority shall review all Auditor's findings and shall 
report violations of this Code to the Administrator. 

Article XI — Unfair Practices 

The practices hereafter enumerated in this paragraph, if indulged 
in by any member of the Industry, shall constitute acts of unfair 
competition within the meaning of, and with the effect and penalties 
set forth in paragraph (b) of Section 3 of the Act. 

(a) Knowingly or willfully failing to comply with any of the 
provisions of this Code ; 

(b) Making or promising of any bribe, gratuity, gift, or other 
remuneration, directl}^ or indirectly, to any employee or officer of any 
purchaser or prospective purchaser for the purpose or with the effect 
of making a sale of any product of the industry ; 

(c) Circuliiting or disseminating false or misleading information 
relative to the product, price, credit standing, ability, or perform- 
ance of anji' competitor in the industry ; 

(d) Knowingly inducing or trying to induce in any manner the 
violation of any contract with any competitor in the industry ; 

(e) Granting the secret payment or allowance of rebates, refunds, 
commissions, credits, or unearned discounts, whether in the form of 



229 

money or otherwise, or the secret extension to certain purchasers of 
special services or privileges not extended to all purchasers on like 
terms and conditions; 

(f) Procuring any information concerning the business of any 
employer in the industry which is properly guarded by such em- 
ployer as a trade secret or as confidential within its organization 
otherwise than with the consent of such employer; provided, how- 
ever, that this shall not apply to information obtained relevant and 
pertinent to any investigation undertaken under this Code ; 

(g) Selling or offering to sell any new machine upon which the 
seller thereof has not deposited a price list in effect on the date of 
such sale or offer except for newly designed and/or invented 
machines ; 

(h) Making or offering to make a trade-in allowance for any 
machine more than two years old greater than 15% of the price of 
the new machine or of the original price of the trade-in machine, 
whichever is lower ; 

(i) Selling or offering to sell any product of the industry at a 
price less than or upon discounts and terms other than those set 
forth in the deposited price list of the manufacturer thereof or 
secretly or openly agreeing to divide with the purchaser or intend- 
ing purchaser any selling commission or discount granted by an 
employer to the selling agent or agency ; 

(j) Agreeing to install any machine or equipment free of charge 
to the purchaser thereof or failing to charge the deposited rate for 
installation as set forth in the price list. 

(k) So long as the maker of any trade-marked machine or de- 
sign (or his successor in business) continues to make the same or 
to supply repair parts therefor, it shall be an unfair method of com- 
petition for any other employer to make and supply either repair 
parts for or such machine and design unless (a) the name of the 
maker thereof is plainly marked on each machine, design or part, 
and if this is impractical as to parts on the package or tag thereof 
and (b) unless in such a manner as to clearly indicate to the ultimate 
user that said machine, design or parts were not made by the maker 
of the original machine, design or part. 

Article XII — Sales for Export 

Except as may be subsequently set forth in a specific or supple- 
mentary Export Code for the industry, the provisions of this Code 
now or hereafter adopted with regard to prices, discounts, deduc- 
tions, allowances, extras, commissions, or methods and/or terms of 
sale, are not to apply to direct export sales or to sales in course of 
export, (i.e., sales destined ultimately for export) or to sales of ma- 
terials used in the manufacture of products for export, but the pro- 
visions of Article IX shall apply to such sales. 

Article XIII — Rights or President 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the National Industrial Recovery 



230 

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, but without limitation, to the right of the President to 
cancel or modify his approval of this Code or any conditions im- 
posed by him upon his approval thereof. 

Article XIV — Amendments Contemplated 

This Code is intended to be a basic Code. Study of the trade prac- 
tices of the industry will be continued by Code Authority with the 
intention of submitting from time to time after its effective date 
additions to, or revisions of, or supplements to, this Code ; such addi- 
tions, such revisions, and such supplements, however, shall conform 
to and be consistent with the provisions of this Code as now con- 
stituted, or hereafter changed. 

Any such amendments, additions, revisions, or supplements pro- 
posed by Code Authority and approved by the President shall be 
in full force and effect from and after such approval. 

Article XV — Segregation of Industry 

If any employer of labor in the industrj?- is also an employer of 
labor in any other industry, the provisions of this Code relating to 
selling and business practices shall apply to and affect only that part 
of his business and product which is included in this industry. 

Article XVI — Effective Date 

This Code shall become effective on the 11th day after its approval 
by the President. 

Approved Code No. 75. 
Registry No. 1399-35. 

O 



Approved Code No. 76 
CODE OF FAIR COMPETITION 

FOR THE 

ROCK CRUSHER MANUFACTURING INDUSTRY 

As Approved on November 1, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been dnly 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 Rock Crusher Manufacturing Industry, 
and hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said code thereto, 
and the Administrator having found that the said code of fair com- 
petition complies in all respects with the pertinent provisions of 
Title I of saicl 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. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Adininistrator. 

The White House, 

Novemher i, 1933. 

{TM) 



29914 296-176 34 



October 23, 1933. 
The President, 

Ths White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Rock Crusher Manufacturing Industry in the United 
States, conducted in Washington on September 12, 1933, in accord- 
ance with the provisions of the National Industrial Recovery Act. 

Provisions on Hours and Wages 

The maximum hours provided by the Code for factorj^ employees 
will be 40 per week and 8 per day. When production demands it, 
this working time may be increased to 44 hours per week in not 
more than 8 weeks in any 6 months' period, the average hours to 
be not more than 40 per week. Time and one half will be paid to 
employees working in excess of 8 hours per day or 40 hours per 
week. 

Those employed as preparation, care, and maintenance workers, or 
as stock or shipping clerks, will be given a tolerance of 10 percent 
over the maximum hours prescribed, the average to be not more 
than 40 hours per week in any 6 months' period. The above limita- 
tions in hours do not apply to supervisory employees receiving more 
than $35.00 per week, service-parts foremen, field service men, nor 
to emergency maintenance or repair workers, the last class being 
paid time and one half for all hours worked in excess of 8 per day 
or 40 per week. 

The minimum wage for factory workers will be 40 cents per hour. 
No distinction in wage rates will be made between male and female 
employees. Adjustments of wage rates above the minimum provided 
will be made and will be reported to the Administrator. 

A maximum of 40 hours per week is provided for employees en- 
gaged in accounting, clerical, service, sales, and delivery work. 
Their minimum wage will be in accordance with the President's 
Reemployment Agreement. Salaries now higher than the above 
minimums will not be reduced because of change in hours provided 
in the Code. OflGlce boys and messengers will receive not less than 
80% of the minimum wage, and the number of office boys, messengers, 
and apprentices will be not more than 5 percent of the total number 
of employees of any employer. 

Child Labor 

The minimum age provided is 16 years, but in hazardous occupa- 
tions this age limit is raised to 18 years. 

Economic Effect of the Code 

This Industry manufactures portable crushing, screening, washing, 
and conveying machines for handling rock and gravel. There are 

(232) 



233 

seventeen companies in the Industry, witli approxiniately 1,000 em- 
ployees. While sales in 1932 were about 80% of tlie liJ29 %ures, 
there were nearly as many employees enf?a<^ed in the Industry in 
1932 as in 1929, because of the " share the work " policy. Only by a 
revival of the building industry can any appreciable number of 
employees be added to those already engaged in the Industry. 

It is estimated by the Industry that the hours and wages provided 
in the Code will increase employment approximately 20 percent, and 
that the average income per employee will be increased approxi- 
mately 20 percent over the income prior to June 16, 1933. 

In working out and accepting its Code this Industry has showm its 
cooperation in complying with the spirit of the Act. 

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 that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Rock Crusher Manufacturers 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 oper- 
ate 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 approved. 
Respectfully, 

Hugh S. Johnson, 

A dininis trator. 



CODE OF FAIR COMPETITION 

FOR THE 

ROCK CRUSHER MANUFACTURING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are submitted as a Code of Fair 
Competition for the Rock Crusher Manufacturing Industry and upon 
approval by the President shall be the standard of fair competition 
for this Industry. 

Article II — Definitions 

The term " Rock Crusher Manufacturing Industry " or " Indus- 
try ", as used herein, shall mean the manufacture and the sale by 
the manufacturer of portable Rock Crushers and rock and gravel 
handling machinery of all kinds of a portable nature and such other 
items as are regularly used with said ]iortable equipment. 

The term " employee ", as used herein, includes any person engaged 
in any phase of the Industry in any capacit}^, receiving compensa- 
tion for his services, irrespective of the method of paj^ment of his 
compensation. 

The term " employer " as used herein includes anyone by whom 
such employee is compensated or employed. 

The term " member of the Industry " as used herein includes any- 
one engaged in the Industrj'^ as above defined either as an employer 
or on his own behalf. 

The term " member of the Code " as used herein includes any 
member of the Industry who shall expressly signify assent to this 
Code. 

The term " effective date " as used herein means the day on which 
this Code shall be approved hj the President of the United States. 

The term " learner " as used herein means a person having no 
previous experience in the manufacture of Rock Crushers or parts 
thereof or in a similar Industry and whose period of employment 
as such shall not exceed six months. 

The term " apprentice " as used herein means a person, usually a 
minor, indentured to serve an employer for a term of years in order 
to learn a trade, art, or profession. 

The term "Association" as used herein means the Rock Crusher 
Manufacturers' Association. 

The term "Administrator " as used herein means the Administra- 
tor of the National Industrial Recovery Act. 

(234) 



235 

The term "cash" as used herein means lawful money of 
the United States or immediately collectible check or eciuivalent 
instrument. 

Population shall be determined by the United States Census of 
HK'.O. 

Article II I — Parti ci i-atiox 

Participation in the Code, and any subsequent revision of or addi- 
tion to the Code, shall be extended and apply to any member of the 
Industry who assumes his share of the cost and responsibility, as 
well as the benefit of such participation. No initiation fee shall Ije 
char<>;ed but there shall be levied an assessment upon each member 
of the Code, prorated on a basis of dollar volume of sales to meet 
current expenses and any extraordinary expenses which may be 
found necessary and are approved by the Code Authority, subject 
to review by the Administrator. 

Article IV — Labor Code 

Section 1. (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 em- 
ployers of labor, or their agents, in the designation of such represent- 
atives 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 aii}^ company union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

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

(d) Employers agree to the maintenance of working conditions 
which will insure the health, safety, and happiness of labor. 

(e) No member of the Industry shall employ in the Industry any 
person under the age of 16 years ; provided, however, that where a 
State law provides a higher minimum age, no person below the age 
specified by such State law shall be employed within the State. No 
person under the age of 18 years shall be employed in any hazardous 
occupation. 

Sec. 2. Hours of Labor. — (a) No employee except as hereinafter 
provided shall work or be permitted to w^ork in excess of eight (8) 
hours in any twenty-four (24) hour period nor in excess of forty (40) 
hours in any one week; provided, however, that during any period in 
which a concentrated demand upon any division of the Industry shall 
l^lace an unusual and temporary burden for production upOn its 
facilities, an employee of such division may be permitted to work not 
in excess of forty-four (44) hours per week in not more than eight (8) 
weeks of any six (6) months' period, but the average shall not 
exceed forty (40) hours per week in any six months' period. Where 
in any case an employee is w-orked in excess of eight (8) hours in any 
twenty-four (24) hour period, or forty (40) hours in any one week, 
time and one half shall be paid for the excess hours so worked. 



236 

(b) A tolerance of ten (10) percent shall be allowed for em- 
ployees engaged in the preparation, care, and maintenance of plant, 
machinery, and production facilities, and for stock and shipping 
clerks and delivery employees; provided, however, that such toler- 
ance sliall not result in such employees working in excess of an 
average of forty (40) hours per week in any six (6) months' period. 

(c) The limitations as to hours of labor shall not apply to watch- 
men nor to employees engaged in emergency maintenance or repair 
work; provided, however, that employees engaged in emergency 
maintenance or repair w^ork shall be paid time and one half for all 
hours worked in excess of eight (8) hours in any twenty-four (24) 
hour period or forty (40) hours in any one week; provided further, 
that watchmen shall not be permitted to work more than six (6) 
days in any seven (7) day period. 

(d) No employer shall Avork any accounting, clerical, service, or 
sales employee in excess of forty (40) hours per week on a semi- 
yearly average, or in excess of forty-four (44) hours in any one 
week. 

(e) The total number of hours which shall be worked by any 
employee, whether with one or more employers, shall not exceed the 
maximum as prescribed herein. 

(f) Nothing in this Section shall apply to employees in a mana- 
gerial, an executive, or a supervisory capacity receiving more than 
$35.00 per week nor to commercial traveling salesmen, outside service 
men, or stock-room parts men. 

Sec. 3. Rates of Pay. — (a) The minimum wage that shall be paid 
by employers to any employee, except as hereinafter provided, shall 
be forty (40) cents per hour. 

(b) No employer shall pay any one of the classes of employees 
mentioned in Paragraph (d) of Section 2 of this Article at a rate 
of 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 imme- 
diate trade area of such city; and in towns of less than 2,500 popula- 
tion shall increase all wages by not less than 20 percent, provided 
that this shall not require wages in excess of $12.00 per week. Where 
a State law provides a higher minimum wage, no employee within 
the State shall be paid a wage below that required by such State law. 

(c) No employee of the classes mentioned in Paragraph (d) of 
Section 2 of this Article now receiving compensation at a rate in 
excess of the minimum provided in Paragraph (b) of Section 3 of 
this Article shall have his compensation reduced on account of an}; 
reduction in the weekly hours of employment made to conform with 
the requirements of Paragraph (d) of Section 2 of this Article. 

(cl) The provisions of Paragraphs (a) and (b) of this Article 
shall not apply to apprentices, learners, office boys, or messengers 
to a total number not to exceed 5 percent of the total number of all 
employees of any employer; provided, that such learners shall be 
paid not less than 80 percent of the minimum wage provided for in 
Section 3 (a) of this Article; provided further, that such office boys 
and messengers shall be paid not less than 80 percent of the minimum 



237 

wage provided for in Section 3 (b) of this Article; provided further, 
that all existinjS^ and future apprentice contracts shall be submitted 
to the Code Authority and shall be subject to the approval of the 
Administrator, 

(e) Where an employee's earnings on piecework, divided by the 
number of hours worked, produces a result under the minimum wage 
stipulated in Paragraph (a) of tliis Article, such earnings shall bo 
so adjusted as to conform Avith the aforesaid minimum wage. 

(f) The hourly wage rate, the base rates for piecework, and the 
salaries of all employees receiving more than the minimum rate or 
salary herein provided shall be equitably adjusted, if such adjust- 
ments have not already been made. 

(g) No distinction in rates shall be made between male and female 
employees where the same class of work is performed, regardless 
of whether compensation is calculated on an hourly, weekly, monthly, 
or piecework basis. 

(h) No employee shall be classified in one of the foregoing ex- 
cepted classes unless he performs functions identical with those per- 
formed by employees thus classified on Jime 16, 1933. 

(i) No person who has worked as a learner for one member of 
the Industry for the period of time specified under the term 
" learner " in Article II may thereafter be classified as a learner. 

(j) 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 is compensated on a time rate, a piecework 
performance, or otherwise. 

Article V — Trade Practices 

Section 1. (a) Each member of the Industry shall accord fair 
and uniform treatment of his distributors, jobbers, dealers, and other 
sales representatives. The discount from the published list prices 
to said distributors, jobbers, dealers, and other sales representatives 
may vary according to the particular type of equipment, but in no 
case shall it exceed 20 percent. 

(b) Each member of the Industry shall publish and file Avith the 
Code Authority a net f.o.b. manufacturer's works price list to 
apply to consumers. Each member shall sell to the consumer only 
in accordance with such established price lists and no member shall 
sell to or through any distributor, jobber, dealer, or other sales 
representative unless such distributor, jobber, dealer, or other sales 
representative shall have agreed to sell only in accordance with such 
published lists. Each member shall file with the Code Authority 
any change in such published price lists or revisions thereof ten (10) 
days before such new or changed prices shall become effective. 

(c) A very substantial portion of sales to ultimate consumers are 
mad-e directly by members of the Industry and the balances are made 
through dealers. In consequence, restriction of members of the 
Industry to fair-trade practices, to be effective, must be supplemented 
by prohibiting indirect evasions of such restrictions on the part of 
members of the Industry by operations through dealers. Accord- 
ingly, it is hereby provided that no member of the Industry shall sell 
any product of \he Industry through any dealer until such dealer 



238 

agrees to comply Avith the fair-trade practices set forth in this 
Article V in the resale of such product. 

(d) The f.o.b. price to any destination shall be not less than the 
price f.o.b. manufacturer's works plus actual freight from the manu- 
facturer's works to destination. 

(e) The Code Authority shall set up a uniform method of cost 
finding, subject to the approval of the Administrator, to be used 
by all members of the Industry in arriving at unit costs. 

(f) For the purpose of reducing selling expense the shipment of 
equipment for the purpose of demonstrating or otherwise influencing 
the award of an order, in advance of the actual placing of such order, 
is forbidden. This provision shall not be construed to prohibit 
demonstration at the manufacturer's plant or branch warehouse. 

(g) No products of the Industry shall be rented bj^ any member 
of the Industry. 

(h) All machines or attachments shall be sold only under firm 
sales orders or contracts, signed by the purchaser and stating a 
definite delivery date, prices, and terms. Orders must provide for 
delivery not later than sixty (60) days from the date of the order. 

(i) To avoid discrimination between purchasers and for the pro- 
tection of the Industry, the following uniform terms of selling will 
be maintained : 

A minimum of 25 percent of the total sales price will be required 
as a cash payment from all contractors and individuals, which cash 
payment, however, may be divided up so that only a portion of the 
amount accompanies the order, the balance to be collected by sight 
draft against bill of lading. The remainder of the total purchase 
price shall in no case be spread over a longer period than one year 
from date of order, and shall be evidenced by monthly notes bearing 
Interest at a rate of not less than 6 percent. 

In the case of municipalities and political subdivisions a 25 percent 
cash payment is to be made not later than the date of the first regular 
meeting of the purchasing body subsequent to the date of the order ; 
the remainder of the purchase price may be spread over a period not 
longer than eighteen (18) months from date of order and shall be 
evidenced by interest-bearing legal paper of the customer. 

(j) No member of the Industry shall trade or accept any second- 
hand equipment as part payment for new. They may, however, 
assist in finding a buyer for said second-hand equipment, but shall in 
no case take any financial interest in it. 

(k) Cash dhcounts. — A maximum discount of 3 percent may be 
allowed as cash discount on all orders for complete machines, pro- 
viding the full cash settlement is received within 15 days from date 
of shipment, 

(1) No guarantee on e(|nipmeiit shall provide for more than de- 
fective material and workmanship and no guarantee shall exceed 
ninety (90) days from date of shipment. 

(m) It shall be an unfair method of competition to sell below cost. 
Cost shall be determined in accordance with the uniform method of 
cost finding subject to the approval of the Administrator, set up as 
provided in Section 1 (e) of this Article V. 

(n) Discontinued or noncurrent lines may be sold at such prices as 
are necessary to move such stock into the' buyer's hands. Descrip- 



239 

tion of all such items, together with the quantities thereof and the 
iiiininium prices at which it is contemplated that it be sold sliall be 
submitted to the Code Authority who shall pass on the obsolescence 
of such equipment and establish rules and regulations under which 
it shall be sold, subject to the approval of the Administrator. 

(o) In the sale or offering for sale of any machine or attachment, 
no member of the Industry shall misrepresent his products by any 
false means or device which has the capacity or tendency to mislead 
or deceive purchasers or prospective purchasers. 

(p) No member of the Industry shall defame any competitor by 
falsely imputing to him dishonorable conduct, inability to perform 
contracts, questionable credit standing, or by other false representa- 
tion or by false disparagement of the grade or quality of his goods. 

(q) No member of the Industry shall solicit, advise, induce, or 
entice a customer of another member of the Industry to break or 
rescind his firm sales order or contract with such other member. 

(r) Prior to December 31, 1933, no member of the Industry shall 
increase the sale price of his product sold after the effective date 
hereof over the price on July 1, 1933, by more than is made necessary 
by actual increases in manufacturing, distribution, and matei'ial costs, 
or by taxes or other costs resulting from action taken pursuant to 
the Agricultural Adjustment Act and/or this Code since July 1, 
1933, and in setting such price increase, full weight shall be given 
to probable increase in sales volume. In case a member of the In- 
dustry on July 1, 1933, was selling his product at less than actual 
cost, he ma}^ take his cost price on that date as the base for such in- 
crease in selling price as is permitted by this section. 

Article VI — General 

Section 1. No provision in this Code shall be interpreted or ap- 
plied in such a manner as to — 

(a) Promote monopolies or monopolistic practices; 

(b) Permit or encourage unfair competition; 

(c) Eliminate or oppress small enterprises; or 

(d) Discriminate against small enterprises. 

Sec. 2. Violation by any member of the Industry of any pro- 
visions of this Code is an unfair method of competition. 

Article VII — Administration 

Section 1. The provision of this Code in respect to administration 
thereof by the Industry and/or governmental authority, which pro- 
vision shall be as strict as the National Industrial Recovery Act per- 
mits, shall be determined and administered by the Code Authority, 
which shall consist of the Executive Committee of the Association 
(by virtue of the authority vested in it by the Constitution of the 
Association), one member of the Industry who is not a member of 
the Association, if the non-members so desire (said member to be 
elected by non-members of the Association in any fair manner that 
ma}' be approved by the Administrator), and one or more appointees 
of the Administrator, if he so desires, who shall have no vote. 



240 

Sec. 2. The Code Authority shall have the following duties and 
powers to the extent permitted by the Act and subject to approval 
by the Administrator: 

(a) To collect from members of the Industry all data, reports, and 
statistics when and as required by the President and/or the Admin- 
istrator and/or their agent or agents and/or the Code Authority. 
Such information shall be confidential. Each such member shall 
send his data to a Neutral Agency designated by the Code Authority, 
in a plain envelope contained in an envelope addressed to the Neutral 
Agency. This Neutral Agency shall assemble all such data and 
present to the Code Authority only the combined totals. Each such 
member shall retain copies of his own data to be sent direct by him 
to the Administrator, if required by the latter. 

Reports submitted by the Code Authority to the President and/or 
the Administrator shall be in the form prescribed and/or approved 
by him. 

(b) To represent the Industry in conferring with the President 
or his agents with respect to the administration of this Code and 
in respect to the Act and any regulation issued thereunder. 

(c) To hear and investigate complaints and attempt to adjust the 
same in accordance with law. 

(d) To coordinate the administration of this Code with such 
Codes, if any, as may be adopted by any subdivision of this Indus- 
try, or any related Industry, with a view to providing joint and 
harmonious action on all matters of common interest, all with the 
approval of the Administrator. 

(e) To investigate and analyze anv charge of a violation of this 
Code. 

Sec. 3. In addition to information required to be submitted to 
the Code Authority, there shall be furnished to Government agencies 
such statistical information as the xVdministrator may deem neces- 
sary for the purpose recited in Section 9 (a) of the National 
Industrial Recovery Act. 

Article VIII — Rights of the President 

This Code and all the provisions thereof are expressly made sub- 
ject 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 
specifically, but without limitation, to the right of the JPresident to 
cancel or modify his approval of this Code or any conditions imposed 
by him upon his approval thereof. 

Article IX — Amendments 

Any proposals for amendments to the Constitution and by-laws 
of the Association and/or this Code or supplemental agreements 
with respect to wages, hours, or trade practices, or any other matters 
shall be first submitted to the Code Authority, which shall consider 
the same and confer with members of the Industry affected thereby. 
The Code Authority as representing the entire Industry shall have 



241 

no power to approve any amendments or supplemental agreements 
but may arrange for a hearing before the Administrator on any 
proposal which a substantial proportion of the Industry afl'ected by 
the proposal desires to present, and shall notify all membei's of the 
Industry of the time and place of the hearing. 

Article X 

Where the costs of executing contracts entered into in the Industry 
prior to the date of approval of this Code are increased as a result of 
the provisions of this Code or any other Code duly approved under 
the National Industrial Recovery Act, or where any contract entered 
into by any member of the Industry prior to the date of approval of 
this Code is inconsistent with the provisions of this Code, it is 
equitable and promotive of the purposes of the National Industi-ial 
Recovery Act that appropriate adjustments of sucli contracts be 
arrived at by arbitral proceedings or otherwise, and the Code Au- 
thority is hereby constituted as agency, with the consent of the buyer, 
to assist in effecting such voluntary adjustments. Where the per- 
formance of orders accepted prior to the effective date of this Code 
is delayed as a result of the operation of provisions of this Code, it 
is equitable that appropriate additional time should be allowed for 
the completion of such orders. 

Article XI — Effective Date 

This Code shall become effective on the date of its approval by 
the President. 



Approved Code No. 76. 
Registry No. 1399-1-15. 



O 



Approved Code No. 77 
CODE OF FAIR COMPETITION 

FOR THE 

CROWN MANUFACTURING INDUSTRY 

As Approved on November 1, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compilance 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 Crown Manufacturing Industry, and hear- 
ings 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 com- 
petition 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 
icompetition be and is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

Novem'ber 1, 1933. 

29915 2P&-177 34 V2\?,) 



October 25, 1933\ 
The Presidext, 

The White House. 

Sir: The proposed Code of Fair Competition for the Crowre 
Manufacturing Industry was submitted to the Administrator on 
August 9. 1933, by the Cro^Yn Manufacturers' Association of America 
representing 93 percent of the known members of tlie Industry. The 
Hearing was conducted in Washington on September 15, 1933, and 
the Code was revised during the recess of this Hearing, and is sub- 
mitted in its present form for approvaL Every person who requested 
an appearance was properly heard in accordance with statutory and 
regulatory requirements. 

The Industry is relatively small, having in 1929 only 1.640 employ- 
ees and is distinguished from the Cap and Closure Industry in that 
it is engaged in the manufacture of beverage-bottle closures which 
are fabricated from cork and metal and are used principally upon 
pressure beverages- 

During the past four years the Industry experienced a drop of 
approximately 31 percent in the unit volume of sales. This was 
coincident with the drop of 30 percent in the number of employees. 
It is estimated that the insertion of the Labor Provisions of this Code 
Avill necessitate a 66 percent increase in employment over the average 
number employed in 1932 and that $850,000 will be added to the 
yearly pay roll. 

Resume of Code 

Article I. States the purpose of the Code. 

Art. II. Accurately defines specific references made in the Code. 

Art. III. Sets forth the Mandatory Labor Provisions, minimum 
age requirements, maximum hours, and minimum wage rates. The 
maximum hours are limited to 40 per week for factory employees 
averaged over a six months' period, but are not to be in excess of 
48 hours in any one week. Power plant firemen, and engineers, 
employees engaged in emergency maintenance and emergency repair 
work, and highly skilled artists and metal lithographers (the latter 
are restricted to a maximum of 54 hours in any one week) are ex- 
cepted from the above provisions, but in all cases where the above 
employees are required to work in excess of 40 hours in any one week, 
the wages paid shall be at a rate of not less than one and one-third 
times the prevailing rate. The maximum hours for accounting, cler- 
ical, office, service, and sales employees (except outside salesmen) are 
limited to 40 hours per week except that in not more than six weeks 
in au}' six months' period such employees shall be permitted to work 
48 hours per week. 

The minimum wage rate for factory, mechanical, and artisan em- 
ployees is 40 cents per hour for male labor and 35 cents per hour for 
female labor. The minimum wage rate for accounting, clerical, office, 

(244) 



245 

;serv"iee, and sales employees (excej)t outside salesmen) vai'ies from 
$15.00 to $14.00 with the population. Api)i'enti(es and learn(*l-s with- 
out previous experience may not constitute more than 5 percent of 
the total nmnber of em[)loyees and theii- wa<ii:es shall not be less than 
80 percent of the si)ecified minimiuns. 'J'he j^eriod of apprcinticeship 
and learnino- is limited to one month. Hi<iher-paid employees are 
protected by an equitable readjustment clause. 

Art. IV. Establishes a Code Authority of five members elected by 
the Industry with additional (not exceeding three) representatives 
to be appointed by the Administrator' and provides machinery for 
obtainino; statistics. 

Art. V. Establishes an open-price structure wdth no limitation 
placed upon the prices any firm may quote. 

Art. VI. Excepts export sales from the provisions now included or 
hereafter to be included in Article V. 

Art. VII. Sets forth the Fair Trade Practices for the Industry. 

Art. VIII. Contains the mandatory provisions respecting amend- 
ments and provisions respecting State laws and price increases on the 
products of the Industry. 

Art. IX. Sets forth the action to be followed in the event of a 
violation of the Code. 

Art. X. States the effective date. 

Findings 

The Administrator finds: A. This code complies in all respects 
•with the pertinent phrases of Title I of the Act including without 
limitation subsection (a) of Section T and subsection (b) of Section 
aO thereof. 

B. The Crown Manufacturers' Association of America is truly 
representative of the Crown Manufacturing Industry and the by-laws 
of this Association contain no inequitable restrictions on membership. 

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 Recovery Act. 

It is recommended, therefore, that this Code be approved. 
.Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

CROWN MANUFACTURING INDUSTRY 

Article I — Purpose 

To effectuate the policy and purpose of the National Industrial' 
Recovery Act the following provisions are established as a Code of 
Fair Competition for the Crown Manufacturing Industry, and shall 
be binding on every member thereof. 

Article II — Definitions 

Section 1. The term "the Industry" means and includes the 
business of producing in the United States and selling crown caps. 

Sec. 2. The term "member of the Industry" means any person 
engaged in the Industry as herein defined either as an employer or 
on his own behalf. 

Sec. 3. The term " the Association " means the Crown Manufac- 
turers' Association of America, 218 Munsey Building, Washington,. 
D.C. 

Sec. 4. The terms "President", "Act", and "Administration" as 
used herein shall mean respectively the President of the United States, 
the National Industrial Recovery Act, and the Administrator of said 
Act. 

Sec. 5. The term "employee" as used herein includes anyone 
engaged in the industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation. 

Sec. 6. The term "employer" as used herein includes anyone by 
whom any such employee is compensated or employed. 

Sec. 7. The term "plant" means a plant engaged in the Industry 
as herein defined. 

Sec. 8. "Majority Vote." Each member of the Industry shall be 
entitled to one vote for each full million gross of shipped sales re- 
ported for the previous calendar year; provided, that no member shall 
have more than five votes; and further provided, that each member 
shall have at least one vote irrespective of the shipped sales grossage 
reported for the previous calendar year. 

At any meeting of members of the Industry, members thereof hav- 
ing the right to cast at least sixty percent (60%) of all the votes shall 
constitute a quorum. Fifty-one percent (51%) of the votes which 
Avould be cast if all members were present shall constitute a majority 
vote. 

Sec. 9. The term "Code Authority" means the Administrative 
body provided for in Article IV of this Code. 

(24G) 



247 

Article III.— Labor Provisions 

Section 1. Employees shall have the rijjht to organize aiui 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 ie])resentatives 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 maximum hours of labor, minimum 
rates of pay, and other conditions of employment, approved or pre- 
scribed by the President. 

Sec. 2. No person under 16 years of age shall be employed in the 
industry, nor anyone under 18 years of age at operations or occupa- 
tions hazardous in nature or detrimental to health. In any State an 
employer shall be deemed to have complied with this provision if 
he shall have on file a certificate or permit duly issued by the authority 
in such State empowered to issue employment or age certificates or 
permits, showing that the employee is of the required age. 

Sec. 3. Hours. — (a) The maximum number of working hours for 
all employees in the Industry, except as hereinafter provided, shall 
not be in excess of forty (40) hours per w^eek averaged over a six 
months' period, and not in excess of forty-eight (48) hours in any one 
week. For the purpose of this paragraph, the balance of the year 
1933, from the effective date of this Code to December 31, 1933, in- 
clusive, shall be considered the first period. Subsequent periods 
shall begin on January 1st, and July 1st, to end on June 30th and 
December 31st, respectively. 

The maximum hours fixed in the foregoing paragraph shall not 
apply to the following employees: 

Highly skilled artists and metal lithographers where restrictions of 
hours would unavoidably reduce production, but no such employees 
shall work or be permitted to work in excess of fifty-four (54) hours 
in any one week; 

Power plant firemen and engineers ; 

Employees engaged in emergency maintenance and emergency re- 
pair work involving breakdowns or protection of life and/or property. 

Not less than time and one-third time shall be paid for hours worked 
in excess of forty (40) hours in any one week. 

(b) Office or Branch Employees: The maximum number of work- 
ing hours for office or branch employees in the Industry shall not be 
in excess of forty (40) hours per week; provided, however, that any 
such employee may be permitted to work not more than forty-eight 
(48) hours per week in not more than six weeks of any six months' 
period. 

(c) The provisions of this section shall not apply to executives and 
their personal secretaries, and supervisors and their immediate 
assistants having supervisory duties (excepting foremen regularly 
engaged in manual labor receiving less than $35.00 per week), outside 
salesmen, technical employees, and watchmen; provided, however, 
that watchmen shall be limited to fifty-four (54) hours per week and 
provided further that the limitation of hours prescribed in this sec- 



248 

tion shall apply to all proprietors, executives, partners and super- 
visors when they shall be engaged in production or mechanical work. 

(d) The Industry recognizes the desirability, and accepts the prin- 
ciple of, the five-day week as these principles relate to working sched- 
ules for employees. Insofar as it reasonably can, the Industry will 
endeavor to employ its labor on that basis. 

(e) No employee shall be permitted to work for two or more 
employers for a longer period in any week than is specified herein for 
a single emploj^er. 

Sec. 4. Wages. — No employer shall pay any accounting, clerical, 
office, service, or sales emploj^ee (except outside salesmen) less than 
at the rate of $15.00 per week in any city of over 500,000 population, 
or in the immediate trade area of such city; nor less than at the rate 
of $14.50 per week in any city of between 250,000 and 500,000 
population, or in the inmiediate trade area of such city; nor less than 
at the rate of $14.00 per week in any city or town of 250,000 or less 
population. 

Sec. 5. No employer shall pay any male factory or mechanical 
worker or artisan less than forty cents (40^) per hour or any female 
factory or mechanical worker or artisan less than thirty-five cents 
(35^) per hour; provided that when the Code for the Graphic Arts is 
approved, there shall be a review of the provisions relating to maxi- 
mum hours, minimum wages, and conditions of employment appli- 
cable to the employees in the Crown Manufacturing Industry engaged 
in work similar to that covered by the Code for the Graphic Arts. 
It is agreed that this paragraph establishes a guaranteed minimum 
rate of pay regardless of whether the employee is compensated on the 
basis of a time rate or on a piecework performance. 

Female employees doing substantially the same work as that per- 
formed by male employees shall receive a rate of compensation equal 
to that of such male employees. 

Apprentices and learners without previous experience in the In- 
dustry shall be excepted from the provisions of this section; provided, 
however, that the total number of such apprentices and learners shall 
not constitute more than five percent (5%) of the total number of 
employees subject to the provisions of this Code in any one plant, 
and provided, further, that the wages paid to such apprentices and 
learners shall not be less than eighty percent (80%) of the mmimum 
rates of pay specified in this Code ; and, provided further, the period 
of apprenticeship or learning shall not exceed one month. 

Sec. 6. The wage differentials for all operations shaU be equitably 
readjusted and in no case shall they be decreased. Each member of 
the Industry shall report all such readjustments to the Code Authority 
within thirty (30) days of the effective date. 

Sec. 7. Each employer shall post in conspicuous places full copies 
of the Labor Provisions of this Code (Article III and Article VIII, 
Section 2). 

Article IV. — Administration 

Section 1. To effectuate the policies of the National Industrial 
Recovery Administration and to provide for administration of this 
Code within the Industry, a Code Authority of five members shall 
be established by the Industry. Furthermore, upon the request of 
the Administrator, nonvoting representatives not to exceed three in 



249 

number, to be appointed by him, shall be added to such Code 
Authority. All employers engaged in the Industry as herein defined 
shall be entitled to participate in the election of such members of the 
Code Authority. Such election shall be by a majority as defined in 
Section 8 of Article II. The Administrator upon review may dis- 
approve or modify the method of selection of the Code Authority. 

Each trade or industrial association directly or indirectly partici- 
pating in the selection or activities of the Code Authority shall: 
(1) Impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association 
by-laws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

In order that the Code Authority shall at all times be truly repre- 
sentative of the Industry and in other respects comply with the 
provisions of the Act, the Administrator may provide such hearings as 
he may deem proper; and thereafter if he shall find that the Code 
Authority is not truly representative or does not in other respects 
■comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

Sec. 2. The Code Authority shall have the following duties and 
powers to the extent permitted by the Act, subject to the right of 
the xidministrator on review to disapprove or modify any action 
taken by the Code Authority: 

(a) The Code Authority shall be charged with the supervision, 
administration, and enforcement of this Code and may issue such 
rules, regulations, and impose upon anv member of the Industry 
subject to the jurisdiction of this Code such restrictions as may be 
necessary to effectuate the purposes of this Code. The Code Author- 
ity shall have the right to establish its own rules for the conduct of 
its business. 

(b) In order that the President may be informed of the extent of 
observance of the provisions of this Code and of the extent to which 
the declared policy of the National Industrial Recovery Act is being 
effectuated in the Industry as herein defined, the Code Authority 
shall make such reports as the Administrator may require, and each 
member of the Industry shall make such sworn or unsworn reports 
to the Code Authority periodically, or as often as it may direct, on 
wages, hours of labor, conditions of employment, number of em- 
ployees, production, shipments, sales, stocks, prices, and other 
matters pertinent to the purposes of this Code as the Code Authority 
rnay require, and each member of the Industry subject to the juris- 
diction of this Code and accepting the benefits of the activities of 
the Code Authority hereunder shall either become a member of the 
Association or pay to the Code Authority his proportionate share of 
the amounts necessary to pay the cost of the assembly, analysis and 
publication of such reports and data, and of the maintenance of the 
said Code Authority and its activities. Said proportionate share 
shall be based upon volume of net sales. 

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 ma}- deem necessary for 



250 

the purposes recited in Section 3 (a) of the National Industrial 
Recovery Act. 

(c) The Code Authority shall appoint a secretary and any and all 
information requested by the Code Authority shall be filed wdth the 
secretary and deemed confidential and shall not be divulged to any 
member except in summary, but shall be available to the Adminis- 
trator upon request. 

(d) The Code Authority may designate the Crown Manufac- 
turers' Association or any other appropriate agency to assist it in 
carrying out the powers and duties conferred upon it by this Code, 
provided, that the Code Authority shall not be reUeved of responsi- 
bility and that when such Association acts in such capacity, it shall 
comply with all the provisions of this Code appUcable to the Code 
Authority. 

(e) The Code Authority may from time to time appoint such sub- 
committees or designate such agencies, and may delegate to an}^ of 
them such of its powers and duties, as it shall deem necessary or 
proper in order to effectuate the provisions and purposes of this Code. 

(f) The Code Authority shall receive, and if it shall approve, shall 
present for the approval of the Administrator, any proposals for 
supplementary provisions or amendments of this Code or additional 
codes, applicable to the Industry defined herein or to any part there- 
of, wdth respect to wages, hours, trade practices, or related matters 
or conditions in the Industry. 

Sec. 3. (a) Any interested party shall have the right of complaint 
to the Code Authority and of a prompt hearing and decision thereon 
in respect to an}^ decision, rule, regulation, or other course of action 
of such Code Authority. Such complaint must be filed in writing 
with the Code Authority within a reasonable period of time after 
said decision, rule, regulation, or course of action is issued or taken. 
The decision of such Code Authority may be appealed by any in- 
terested party to the Administrator. 

Sec. 4. Any decision, rule, regulation, order, or finding made, or 
course of action followed pursuant to, or any provision of, this Code, 
may be cancelled or modified by the Administrator whenever he 
shall determine such action necessary to effectuate the p^o^dsions of 
Title I of the National Industrial Recovery Act. 

Article V — Open Price Data 

Section 1. Each member of the Industry shall within ten days 
after the effective date of the Code file with the Secretary as many 
copies of its minimum price schedule for all its crowns including 
discounts, allowances, terms, and all conditions of sale as the Secre- 
tary shall require, and from and after the expiration of such ten days 
such member shall at all times maintain on file with the Secretary 
such a minimum price schedule for all its crowns and shall not sell 
below and shall not make any change in such minimum price schedule 
except as herein provided. 

Sec. 2. The date of filing shall be the effective date of the first 
price schedule. Any member of the Industry desiring to change 
such minimum price schedule shall file a revised minimum price 
schedule with the Secretary which shall become effective not less 
than ten days after and exclusive of the date of filing thereof (Sundays 



251 

and holidays excluded). All minimum price schedules so filed shall 
be open to inspection at all times by all interested parties. 

Sec. 3. Upon the filing of a revised minimum price schedule, 
copies thereof shall immediately be sent to all members of the Indus- 
try, who thereupon may file, if they so desire, revisions of their 
minimum price schedule which shall become effective upon the date 
when the revised minimum price schedule first filed shall go into 
effect. 

Sec. 4. None of the prices shown in any minimum price schedule 
shall be changed except by the filing of a new minimum price schedule 
as provided in Section 2. 

Sec. 5. Each member of the Industry may execute an agreement 
in form prescribed by the Code Authority with each Sales Agent, 
Jobber, Broker, or Distributor representing or reselling ci:owns of such 
member, requiring each of them to file with the Secretary minimum 
price schedules at which such sales agent, jobber, broker, or distribu- 
tor shall sell crowns. Such agreement shall provide that any sales 
agent, jobber, broker, or distributor desiring to change such minimum 
price schedule shall file a revised minimum price schedule with the 
Secretary which shall become eft'ective not less than ten days after 
and exclusive of the date of filing thereof (Sundays and holidays 
excluded). All minimum price schedules so filed shall be open to 
inspection at all times. Neither the forms of agreement prescribed 
or any modification thereof shall become effective until approved by 
the Administrator. 

Article VI — Exports 

Except as may be subsequently set forth in a specific or supple- 
mentary export code for the Industry, the provisions of this Code now 
included or hereafter to be included in Article V shall not apply to 
direct export sales or to sales in course of export (i.e., sales of crowns 
as such destined ultimately for export). The term "export" shall 
include, in addition to shipments to foreign countries, shipments to 
such United States possessions as may be defined by the Code 
Authority. 

Article VII — Trade Practices 

The following practices constitute unfair methods of competition 
for members of the Industry and are proliibited: 

Section 1. The secret payment or allowance of rebates, refunds, 
commissions, credits, or unearned discounts, whether in the form of 
money or otherwise, or the secret extension to certain purchasers of 
special services or privileges not extended to all purchasers on like 
terms and conditions. 

Article VIII — General 

Section 1. No provision of this Code shall be construed, interpreted 
or applied in such a manner as to — 

(a) Promote monopolies or monopolistic practices. 

(b) Promote or encourage unfair competition. 

(c) Eliminate or oppress small enterprises. 

(d) Discriminate against small enterprises. 



252 

Sec. 2. Within each State this Code shall not supersede any laws 
of such State imposing more stringent requirements regulating the 
age of employees, wages, hours of work, or health, welfare or general 
working conditions, than are imposed by this Code. 

Sec. 3. Any member of the Industry shall be eligible to member- 
sliip in the Association and there shall be no inequitable restrictions 
imposed upon such membership. 

Sec. 4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provisions 
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 limitation, 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. 5. Prior to December 31, 1933, no member of the Industry 
shall increase the sale price of his product sold after the effective 
date hereof over the price on July 1, 1933, by more than is made 
necessary by actual increases in manufacturing, distribution, and 
material cost, or by taxes or other costs resulting from action taken 
pursuant to the Agricultural Adjustment Act and/or this Code since 
July 1, 1933, and in setting such price increases, full weight shall be 
given to probable increases in sales volume. In case a member of 
the Industry on July 1, 1933, was selling his product at less than 
actual cost, he may take his cost price on that date as the base for 
such increase in selling price as is permitted by this Section. 

Article IX — Violations 

Violation by any employer of any provision of tliis Code or of any 
rule or regulation issued thereunder, or any deliberately false state- 
ment or report made to the President or the Code Authority, after 
decision thereon by the Administrator pursuant to Article IV of this 
Code, shall constitute an unfair method of competition and the 
offender shall be subject to the penalties provided by the National 
Industrial Recovery Act. 

Article X — Effective Date 

The Code shall become effective eleven (11) days after it is approved 
byUhe President. 

Approved Code No. 77. 
Registry No. 1608/1/0]. 

O 



Approved Code No. 78 
CODE OF FAIR COMPETITION 

FOR THE 

NOTTINGHAM LACE CURTAIN INDUSTRY 

As Approved on November 1, 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 16th, 1933, for my approval of a 
Code of Fair Competition for the Nottingham Lace Curtain Indus- 
try, 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 per- 
tinent provisions of title I of said act and that the reqviirements 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, })ursuant to the authority vested in me by title I 
of the National Industrial Recovery Act, approved June 16th, 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. Johxson, 

Administrato7\ 

The White House, 

November 1, 1933. 

29916 206-178 34 (253) 



XOVEMRER 1, 19;33. 

To the President: 

Introdi'Gtion 

Submitted herewith is the report of the Hearing on the Code of 
Fair Competition for the Nottingham Lace Curtain Industry in the 
United States, as submitted by the National Association of Lace 
Curtain Manufacturers, conducted in the small ballroom of the 
Raleigh Hotel in Washington, D.C., on September 22, 1933, in ac- 
cordance with the provisions of the National Industrial Recovery 
Act. 

In accordance with the customary procedure 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, complying with the stat- 
utory requirements, as representing 100% of the Industry. 

Position of the Industry and Code Provisions 

The industry is of moderate size, employing upwards of three 
thousand (3,000) people, and doing an annual business ranging 
between five and ten million dollars. Skilled crafts are highly 
organized. 

The code provides for a forty-hour week and a minimum of thir- 
teen ($13) dollars on a parity with other Textile Codes. There are 
only eleven firms in the field. The increase in employment is only 
estimated to be about 9 percent, as the industry had been working 
on a schedule of forty-eight hours and had been running fairly 
slack. 

The code makes a number of provisions with respect to trade prac- 
tices. Provisions governing reporting cannot be construed as any- 
thing more than open-trade provisions. While not completely unan- 
imous, the industry as a whole has clearly expressed desire for these 
provisions. 

The relationship between the operatives of Nottingham machines, 
known as weavers, and the workers, is fully covered by collective 
bargaining. It constitutes no part of this code. Auxiliary workers 
are only unionized in part and there is considerable disparity with 
respect to their wages and condition of employment as between 
plants. Collective bargaining within each plant has not resulted in 
any uniformity throughout the industry. Their wage levels should 
in part respond to the provisions for " equitable readjustment of pay 
schedules." 

Objection to this code as finally submitted is Avith respect to the 
omission of provisions governing wage rates in any greater detail 
rather than to any provisions contained. 

(254) 



2J0 

Findings 

The Administrator finds that : 

(a) This code complies in all respects with the pertinent provi- 
sions of Title I of the Act, including without limitation subsec- 
tion (a) of Section 7 and subsection (b) of Section 10 thereof. 

(b) The National Association of Lace Curtain Manufacturers 
to be truly representative of the Nottingliam Lace and Lace Curtain 
Industry. The Bylaws of this association provide no inequitable 
restrictions to membership. 

(c) The code is not designed to jnomote 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. 

(d) The Advisory Boards did not raise objection to any of the 
material contained in the code, any differences of point of view 
being, as aforesaid, confined to the omission from the code of addi- 
tional provisions which in fact are more properly covered by collec- 
tive bargaining under contracts being put into effect concurrently 
with the code. The Legal De])artment has checked it as to form 
and has approved it. 

I recommend that the code be approved. 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

NOTTINGHAM LACE CURTAIN INDUSTRY 

Preamble 

To effectuate the policy of Title I of the National Industrial 
Kecovery Act, the following provisions are established as a Code 
of Fair Competition for the Nottingham Lace Curtain Industry. 

Article I — Definitions 

The term " Nottingham Lace Curtain Industry " or " Industry " 
as used herein is defined to mean the manufacture of all articles, 
goods, and fabrics made in whole or in part of animal, vegetable, or 
mineral matter made on the Nottingham Lace Curtain Machine. 

The term "" employee " as used herein shall include all persons 
employed in the conduct of such operations. 

The term " employer " as used herein, includes anyone for whom 
such an employee is so engaged. 

The term '"' productive machinery " as used herein is defined to 
mean Nottingham Lace Curtain machines. 

The term '•''Administrator " as used herein means the Administrator 
of the National Industrial Recovery Act. 

Article II — "Wages 

On and after the effective date, no employee, except learners dur- 
ing a six weeks' apprenticeship, shall be paid less than at the rate 
of $13.00 per week for forty (40) hours of labor. Learners shall 
be paid not less than eighty (80) percent of the established minimum 
wage; no employer shall include within the category of learners 
more than five (5) percent of the total number of his employees. 

There shall be an equitable readjustment of wage rates in the in- 
dustry which will maintain the traditional relationship of weavers' 
rates to the wage rates for different classes of workers. 

The foregoing provisions for a minimum wage established a guar- 
anteed 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 piecework performance. 

Article III — Hours 

On and after the effective date, no employee, except repair-shop 
crews, engineers, electricians, firemen, office, supervisory staff (earn- 
ing $30 per week or over), and shipping, watching, and outside 
crews, shall work or be permitted to work in excess of forty (40) 
hours per week. Productive machinery in the Industry shall not be 
operated for more than two (2) shifts of forty (40) hours each per 
week. 

(256) 



On and after the effective date, the niaximuin hours of hUjor for 
office employees in the in(histry shall be an averaf?e of forty (40) 
hours a week over each period of six («) weeks, but in no event shall 
exceed forty-eiolit (48) hours ])er week. 

On and after the eil'ective date, the nuixiinuiii hours of laboi' of 
repair-sho]) crews, enoineers, tireuien, electricians, and watching 
crews in the industry shall, excei)t in case of emergency work, be 
forty (40) hours a week with a tolerance of ten (10) jjercent. Any 
sucli emergency time shall be reported monthly to tiie Code Au- 
thority hereinafter provided for. One and one third (ly^) times 
the normal rate shall be paid for all hours worked over 44 hours per 
week. 

The foregoing provisions for maximum hours established a maxi- 
mum of hours of labor per Aveek for every employee covered, so that 
under no circumstances v^dll sUch an employee l)e emi)loyed or per- 
mitted to work for one or more employers in the industry in the 
aoro-resate in excess of the i)rescribed number of houi-s in a single 
week. 

The w'ork done by lace-curtain weavers in the Industry shall be 
restricted to five (5) days per week, from Monday through Friday, 
including two (2) shifts" of forty (40) hours each per week and eight 
(8) liours each per day. There shall be no making up of time lost 
through necessary repairs, holidays, or for any other reason, except 
as agreed between the Code Authority hereinafter provided for and 
representatives of the lace-curtain weavers. 

Article IV — Child Labor 

On and after the effective date employers in the Nottingham Lace 
Curtain Industry shall not employ any minor under the age of 
sixteen (16) years. 

Article V — Eeports 

1. With a view to keeping the President informed as to the ob- 
servance or nonobservance of this Code of Fair Competition, each 
member of the Industry will furnish duly certified reports to the 
Code Authority hereinafter provided for. These reports shall con- 
tain such data as the Code Authority may require, subject to the 
approval of the Administrator, and shall be in such form as the 
Code Authority may prescribe. The reports furnished as afore- 
mentioned shall be deemed confidential and shall not be divulged 
except as part of general statistics for the Industry. 

2. Every member of the Industry shall furnish to any government 
agency or agencies designated by the Administrator such statistical 
information as the Administrator may from time to time deem nec- 
essary for the purposes recited in Section 3 (a) of the National 
Industrial Recovery Act, and any reports and other information 
collected and compiled by the Code Authority shall be transmitted 
to such government agencies as the Administrator may direct. 

Article VI — Stretch Outs 

LTntil adoption of further provisions of this Code that may prove 
necessary to prevent any improper speeding up of work (stretch- 



258 

outs) no employee of any mill in the Nottingham Lace Curtain In- 
dustry shall be required to do any work in excess of the practices as 
to the class or Avork of such employee prevailing on July 1, 1933. or 
13rior to the Share-the-Work Movement, unless such increase is sub- 
mitted to and approved by the Code Authority provided for herein- 
after and by the National Recovery Administration. 

Article VII — Open Price Provisions 

Within thirty days after the effective date of this Code every 
manufacturer in the Industry shall file with the Code Authority 
hereinafter provided for, or its agent, a list of his prices which shall 
become effective immediately. 

Before deviations below these prices may be made, the manufac- 
turer must file a new price list embracing such changes, which shall 
not be effective until seven (7) days after date on which such list 
was received by the above Code Authority or its agent, except that 
changes made to meet any competitor's reductions may be made 
effective on or at any time after the date such competitor's reductions 
become effective. 

Article YIII — Trade Practices 

The following principles are set forth for the guidance and better- 
ment of the Industry and their violation shall be a violation of this 
Code of Fair Competition : 

1. Deliveries. — All goods shall be sold on the basis of F.O.B. mill. 
Deliveries may be made free of charge to common carriers and to 
customers located in the city where the mill is situated. This per- 
mits the sale from warehouses wdiere the freight from mill to ware- 
house and warehouse charges are included in the price. 

2. Terms. — Terms of sale of regular goods shall be cash discount 
two (2) percent ten (10) days, sixty (60) days, dating strictly from 
date of shipment. 

Terms of sale of dropped stock, including damages, seconds, and 
dropped samples, shall be net ten (10) days, dating strictly from 
date of shipment. 

It shall not be permissible to allow the deduction of the cash dis- 
count and the addition of interest for any time taken beyond the 
due date of invoice. 

Anticipation for the number of days invoices are prepaid may be 
allowed at the rate of six (C) percent per annum. 

3. Consigmnents. — No goods shall be shipped on consignment or 
memorandum, or prearrangement made for the return of unsold 
stock. 

4. Adverthhir/ Alloivances. — Advertising allowances and rebates 
are unfair trade practices and must not be granted, with the excep- 
tion of such advertising allowances as are approved in advance by 
the Code Authority. 

5. Piracy. — Patterns of one manufacturer shall not knowingly be 
copied by another manufacturer. 

New fabrics produced by one manufacturer may be registered 
with the Code Authority and shall not be copied by another manu- 
facturer for a period of one year. 



250 

All piracy disputes shall be settled by a Piracy Committee to be 
appointed by the Code Authority. There shall be the privilege of 
appeal to the Code Authority from decisions of the Piracy Com- 
mittee, but the decisions of the Code Authority shall be final, sub- 
ject to a]:)peal to the Administrator. 

6. Sample Requirements. — A committee appointed by the Code 
Authority shall decide on a scale of prices to be charjred for samples 
and materials used for sample purposes. Any such samples and 
materials supplied to any customer shall be charged at the approved 
scale. 

7. Dropped Stock or Discontinued FazSz^ems.— Dropped stock or 
discontinued patterns shall be sold and/or delivered only in the 
months of May, June, November, and December, except Avhen sold at 
regular current prices. It shall be considered an unfair trade practice 
to manufacture overruns or excess stocks for the purpose of selling as 
special merchandise or dropped stock. 

Seconds, damages, and dropped samples may be sold at any time. 

8. Price Guarantee. — There shall be no guarantee of price to any 
dealer, whether a retailer, wholesaler, mail order or chain store or 
sj'ndicate. 

9. Secret Relates, etc. — Kendering over-valued or under-valued 
invoices, secret payment of any allowances, or price discrimination 
between acceptable purchasers of like class and kind and under the 
same conditions, shall be considered an unfair trade practice. 

10. Memorandum Orders. — Memorandum or unconfirmed order 
shall not be considered as orders until confirmed. 

11. Merchandise., Misbranding . — Misrepresentation as to the 
weight, quantity, quality, size, or grade of any product sold, or 
offered for sale is an unfair trade practice. 

12. Sahs Beloio Cost. — No manufacturer of the products defined 
in Article 1 of this Code shall sell or exchange any of these products 
at a price or upon such terms or conditions that will result in the 
buyer paying for the goods received less than the cost to the seller,^ 
except to meet a competitor's filed price. This cost shall be deter- 
mined in accordance with a uniform and standard method of costing 
to be developed by the Code Authority and approved by the Admin- 
istrator. 

Article IX — Administration 

To further effectuate the policies of the Act, the Executive Com- 
mittee of the National Association of Lace Curtain Manufacturers, 
the applicant herein, or such successor committee or committees as 
may hereafter be constituted by the action of the National Associa- 
tion of Lace Curtain Manufacturers, and up to three members with- 
out vote, appointed by the President of the United States, one of 
whom shall be a representative of the Curtain Section of the 
Chartered Society of Amalgamated Lace Operatives of America, is 
set up to cooperate with the Administrator as the Code Authority 
for the Nottingham Lace Curtain Industr}-. 

The Code Authority may from time to time present to the Admin- 
istrator recommendations based on conditions in the Industry as they 
may develop which will tend to effectuate the operations of the pro- 
visions of this Code and the policy of the National Industrial Re- 



260 

covery Act. Such recommendations, when approved by the Adminis- 
trator shall have the same force and effect as any other provisions 
of this Code. 

The Code Authority is also set up to cooperate with the Adminis- 
trator in making investigations as to the functioning and observance 
of an}' of the provisions of this Code, at its own instance or on com- 
IDlaint b}' any person affected, and to report the same to the Admin- 
istrator. 

The Code Authority is also set up for the purpose of investigating 
and informing the Administrator on behalf of the Nottingham Lace 
Curtain Industry as to the importation of competitive articles into 
the United States in substantial quantities or increasing ratio 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 Nottingham Lace Curtain Industry, under the pro- 
visions of the National Industrial Recovery Act with respect thereto. 

Article X — Exceptions 

This Code shall be in operation on and after the effective date as 
to the whole Nottingham Lace Curtain Industry, except as an exemp- 
tion from or a stay of the application 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 distinction shall be made 
in such exceptions between persons who have and have not joined 
in applying for the approval of this Code. 

Article XI — General Provisions 

No provision in this Code shall be permitted to operate in such 
manner as to promote monopolies or monopolistic practices or to 
eliminate or oppress small enterprises or to discriminate against 
them. 

Employees shall have the right to organize and bargain collectively 
through representatives of their own choosing, ' and shall be free 
from all interference, restraint, or coercion of employers of labor, 
or their agents, in the designation of such representatives or in the 
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, mini- 
mum rates of pay, and other conditions of employment, approved or 
prescribed by the President of the United States. 

Within each State, members of the Industry shall comply with 
any State laws, imposing more stringent re<iuirements regulating- 
licensing, the age, wages, or hours of labor of emploj^ees, than under 
this Code. 

Where the costs of executing contracts entered into the Nottingham 
Lace Curtain Industry prior to the presentation to Congress of the 



261 

J*»J^ational Indiistiial Recovery Act 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 Act that appropriate adjustments of 
such contracts to reflect such increased costs be arrived at by arbitral 
proceedings or otherwise, and the National Association of Lace Cur- 
tain Manufacturers, the applicant for this Code, is constituted an 
agency to assist in effecting such adjustments. 

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 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 bj^ him upon his approval thereof. 

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 of this Code or addi- 
tional codes will be submitted for the 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. 

Article XII — Effective Date 

The effective date of this Code shall be the second Monday after 
its approval by the President of the United States. 

Approved Code No. 78. 
Registry No. 226/1/04. 

O 



Approved Code No. 79 
CODE OF FAIR COMPETITION 

FOR THE 

NOVELTY CURTAIN, DRAPERIES, BEDSPREADS 
AND NOVELTY PILLOW INDUSTRY 

As Approved on November 1, 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 Novelty Curtain, Draperies, Bedspreads 
and Novelty Pillow 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 recom- 
mendations 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, 

Administrator. 

The White House, 

November 1, 1933. 

29917 296-179 34 (263) 



November 1, 1933. 
The President, 

The White House. 
Sir: This is a report of the Hearing on the Code of Fair Competi- 
tion for the Novelty Curtains, Draperies, Bedspreads, and Novelty 
Pillows Industry, conducted in the Carlton Room of the Carlton 
Hotel, on October 2, 1933, in accordance with the provisions of the 
National Industrial Recovery Act. The Code, which is attached, 
was presented by duly qualified and authorized representatives of 
the Industry, complying with the statutory requirements, said to 
represent 80 percent in number and 90 percent in volume of the 
capacity of the Industry. 

THE INDUSTRY 

The Industry comprises between 250 and 300 plants, having an 
investment of over $15,000,000. The number of employees is esti- 
mated to have increased from 8,500 to above 10,000. Aggregate 
annual sales are estimated at $25,000,000 for 1932, the estimate for 
the years of 1928, 1929, and 1930 being $32,000,000. 

It was specifically stated that the minimum wage had been as low 
as $7.00 per week and it is thought that rates m some sweat shops 
were even below this. 

Briefs have been submitted to show that change of operations to 
conform to the provisions of the code has resulted in an hourly in- 
crease averaging about 70 percent in one of the largest plants in the 
Industry. 

FROVISIONS OF THE CODE 

The Code provides for a minimum of 32K(!f an hour or at a rate of 
$13.00 per week of 40 hours. Office workers are hmited to an average 
of 40 hours, but in no case more than 48 hours per week. Productive 
employees are limited to 40 hours per week, while certain maintenance 
employees are permitted to work up to 44 hours. Employees, how- 
ever, are to receive one and one half times the regular rate of pay for 
such excess above 40 hours. Provision is made for the maintenance 
of differentials between wages above the minimum. Reports of in- 
creases made in accordance with the provisions of this code are 
specifically required by its provisions. 

Operations will be limited to one shift of 40 hours each. The 
Administration of the code is organized along regional lines. Pro- 
visions with respect to representation of non-members of the asso- 
ciation leave this problem largely in the hands of the Administration. 
Provision is made for the reporting of any pertinent information de- 
sired by the Administration, Trade practices are quite extensive, 
but not in any respect objectionable. 

(264) 



265 

FINDINGS 

I find that — 

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

(b) The National Association of Manufacturers of Novelty Cur- 
tains, Draperies, Bedspreads, and Novelty Pillows Incorporated to 
be truly representative of the Novelty Curtains, Draperies, Bed- 
spreads and Novelty Pillows Industry. The By-Laws of tliis asso- 
ciation provide no inequitable restrictions to membership. 

(c) The code is not designated to promote monopolies or to elimi- 
nate or oppress small enterprises and will not operate to discriminate 
against them and will tend to efl'ectuate the policy of Title I of the 
National Industrial Kecovery Act. 

(d) While not attaining a level of wages comparable to conditions 
existing prior to the depression, the wage level represents a most 
substantial rise over conditions prevailing prior to the recovery 
movement. 

(e) The trade practices should be helpful in bringing greater 
orderliness into a highly competitive market. 

I recommend that the code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

NOVELTY CURTAIN, DRAPERIES, BEDSPREADS AND 
NOVELTY PILLOW INDUSTRY 



Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Novelty Curtain, Draperies, Bedspreads, 
and Novelty Pillow Industry and shall be the standard of fair com- 
petition for such industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

1. The term "Industry" as used herein means and includes the 
using or hiring of equipment, or the engaging or hiring of anyone 
owning or hiring equipment, to perform the operation of making 
piece goods into novelty curtains, draperies, bedspreads (made by 
cutting apart and/or sewing together out of the same materials, or 
out of the same materials in combination with other materials 
employing plain or fancy stitching, embroideries, laces, or appliques 
in conjunction therewith, but excluding bedspreads made out of 
one piece of material cut apart for size only), and novelty pillows. 

2. The term "Association" as used herein means the National 
Association of Manufacturers of Novelty Curtains, Draperies, Bed- 
spreads, and Pillows, Inc., of 7 East 44th Street, New York City. 

3. The term "Employee" as used herein includes anyone engaged 
in the Industry in any capacity receiving compensation for his services 
irrespective of the nature or method of payment of such compensation. 

4. The term "Employer" as used herein, includes anyone by whom 
such employee is compensated or employed. 

5. The term "Member of the Industry" as used herein includes 
anyone engaged in the Industry as above defined, either as an em- 
ployer or on his own behalf. 

6. The term "President", "Act", and "Administrator", as used 
herein, shall mean, respectively, President of the United States, the 
National Industrial Recovery Act, and the Administrator of Title I 
of said Act. 

Article III — Hours 

1. No ofl&ce employee in the Industry shall be permitted to work 
more than an average of forty (40) hours per week over each nine (9) 
week period but not more than forty-eight (48) hours in any one 
week during such period nor more than eight (8) hours in any twenty- 
four (24) hour period. 

2. No other employee except outside sales people and executives 
earning a salary in excess of thirty-five dollars ($35.00) per week shall 
be permitted to work in excess of forty (40) hours in any one week 
or eight (8) hours in any twenty-four (24) hour period. 

(266) 



267 

3. The maximum hours fixed in the foregoing sections shall not ap- 
ply to employees engaged on emergency maintenance or emergency 
rejpair work involving breakdowns or protection of life or property. 

No employee permitted under this section to work in excess of 
forty (40) hours per week shall be compensated at less than one and 
one third times his or her regular rate of pay for such excess. 

4. No machinery in the Industry shall be operated for more than one 
shift of forty (40) hours per week. 

Article IV — Wages 

1. No employee shall be paid at less than the rate of thirteen dollars 
($13.00) per week of forty (40) hours or thirty-two and one half 
cents {?>2)'ii) per hour. 

2. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate, piecework or 
other basis. 

3. The compensation for employment now in excess of the minimum 
wages herein provided shall not be reduced notwithstanding that the 
hours worked in such employment shall be hereby reduced, and 
rates of pay for such employment shall be increased by an equitable 
readjustment of all pay schedules. 

Within thirty (30) days after this Code becomes effective employers 
shall report to the Code Authority action taken by them since July 1^ 
1933, with respect to adjustments of wages above the minimum. 

Article V — General Labor Provisions 

1. No person under the age of sixteen (16) years shall be employed 
in the Industry. 

2. 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 
theii' agents, in the designation of such representatives or in self- 
organization or in other concerted activities for the purpose of collec- 
tive bargaining or other mutual aid or protection. 

3. No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to refrain 
fronx joining, organizing, or assisting a labor organi,?:ation of his own 
choosing. 

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

5. Within each State this Code shall not supersede any laws of such 
State imposing more stringent requirements on employers regulating 
the age of emplovees, wages, hours of work, or health, fire, or general 
working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupations 
performed by employees so as to defeat the purposes of the Act. 

7. Until adoption of further provisions of the Code that mav prove 
necessary in order to prevent any improper speeding up of the work 
(stretch-OTits) no manufacturing employee in the Industry shall be 
required to do any work in excess of the practice as to the class of 
work of such empWee prevailing on July 1, 1933, or prior to the 



268 

Share-The-Work movement unless such increase is submitted to and 
approved by the Code Authority created bv Article VI, Section 1, 
of this Code, and by the Administrator. 

8. Each employer shall post in conspicuous places full copies of 
this Code. 

Article VI— Administration 

1. To further effectuate the policy of the Act a Code Authority is 
hereby designated to cooperate with the Administrator in the adminis- 
tration of this Code. The Code Authority shall consist of the Board 
of Directors of the Association and such additional representatives of 
the Industry as shall be selected by a fair method of selection to be 
approved by the Administrator, or as the Administrator shall pre- 
scribe; and up to three advisory members without vote who may be 
appointed by the Administrator. 

As soon as the essential facts of the Industry are gathered by the 
Code Authority from the various geograpliical districts, such districts 
shall be given such proportionate representation on the Code Au- 
thority as is equitable and as shall be approved by the Administrator. 

Each trade or industrial association directly or indirectly partici- 
pating in the selection or activities of the Code Authority shall: (1) 
Impose no inequitable restrictions on membersliip, and (2) submit to 
the Administrator true copies of its articles of association, bylaws, 
regulations, and any amendments when made thereto, together with 
such other information as to membership, organization, and activities 
as the Administrator may deem necessary to effectuate the purposes 
of the Act. 

In order that the Code Authority shall at all times be truly represen- 
tative of the industry and in other respects comply with the provisions 
of the Act, the Administrator may provide such hearings as he may 
deem proper; and thereafter if he shall find that the Code Authority 
is not truly representative or does not in other respects comply with 
the provisions of the Act, may require an appropriate modification 
in the method of selection of the Code Authority. 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator on review to disapprove or modify any action taken by it: 

(a) It shall interpret the provisions of the Code for the members of 
the Industry, subject to the approval of the Administrator, and shall, 
under the general supervision of the Administrator, make investiga- 
tion as to the functioning and observance of the provisions of this 
Code; or it may, at its own instance or on a complaint by any person 
affected, make such investigation and send a copy of its report to 
the Administrator. 

(b) It shall also from time to time make such recommendations to 
the Administrator as will best effectuate the purpose of this Code and 
the policy of the Act. Such recommendations when approved by the 
Administrator, after such notice and hearing as he shall specify, shall 
have the same force and effect as any other provisions of this Code. 

(c) It may from time to time appoint such committees as it shall 
deem necessary or proper in order to effectuate the purposes of the 
Code and delegate to any such committee, its general or any particular 
power hereunder. Such committees shall be appointed with a view 
to geographical representation. The Code Authority shall appoint 



269 

regional coniinittoes to represent each of the geographical districts set 
up in the following section, which conunittees shall he nominated by 
trade associations or other trade organizations truly rei)resentative of 
the Industry in such geographical district, and shall d(>lcgato to such 
regional committees all the powers of executive authority hereunder 
required to enable such regional conunittees to administer the Code 
in such geographical district under the general jurisdiction of tiie Code 
Authority. 

3. For the purpose of administration of this Code, the Industry is 
divided into the following geographical districts: 

(a) Eastern and South Atlantic District. This district shall include 
members whose principal place of business is located within the 
following area: 

New York Georgia Delaware 

District of Columbia West Virginia New Jersey 

Virginia North Carolina Pennsylvania 

Maryland South Carolina Florida 

(b) Middle West District. This district shall include members 
whose principal place of business is located within the following area: 

Michigan South Dakota Indiana 

Wyoming Minnesota Colorado 

Illinois Nebraska Iowa 

Ohio North Dakota Wisconsin 

(c) Western District. This district shall include members whose 
principal place of business is located within the following area: 

Oregon Nevada Washington 

Utah Arizona Montana 

California 

(d) New England District. This district shall include members 
whose principal place of business is located within the following area: 

Maine Massachusetts Rhode Island 

New Hampshire Connecticut Vermont 

(e) Southern District. This district shall include members whose 
principal place of business is located within the following area: 

Alabama Mississippi Arkansas 

Kansas Texas Tennessee 

Missouri Louisiana Oklahoma 
Kentucky 

4. With a view to keeping the President informed as to the observ- 
ance of this Code of Fair Competition, and as to whether the industry 
is taking appropriate steps to effectuate the declared policy of the 
Act, the Code Authority shall collect statistics of the Industry through 
its duly authorized secretary, not a member of the Industry, and all 
members of the Industry shall furnish same as follows: 

Duly certified reports containing information reasonably pertinent 
to the effectuation of the purposes of this Code shall be furnished in 
substance and in such form and at such intervals as the Administrator 
or as the Code Authority, subject to the approval of the Administrator, 
shall prescribe. Full protection shall be given to each member of the 
Industry as to the confidential nature of such data, but such informa- 
tion or copies thereof shall be furnished to the Administrator upon his 
request. If so directed or requested by the Administrator, or if it be 



270 

the policy of the Administrator, the regional committees shall collect 
and forward the reports to the Code Authority. 

5. The Code Authority may, subject to the approval of the Admin- 
istrator, make regulations for the issuance and use of an N.I.R.A. 
label in accordance with the policies of the National Recovery 
Administration . 

6. In addition to information required to be submitted to the Code 
Authority, there shall be furnished to government agencies such sta- 
tistical information as the Administrator may deem necessary for the 
purposes recited in Section 3 (a) of the Act. 

Article VII — Trade Practices 

The following practices constitute unfair methods of competition 
for members of the Industry and are prohibited: 

1. False Marking or Branding. — The false marldng or branding of 
any product of the Industry which has the tendency to mislead or 
deceive customers or prospective customers, whether as to the grade, 
quahty, quantity, substance, character, nature, origin, size, finish, or 
preparation of any product of the industry, or otherwise. 

2. Misre-presentation or False or Misleading Advertising. — The 
making or causing or knowingly permitting to be made or published 
any false, materially inaccurate or deceptive statement by way of 
advertisement or othei'wise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepara- 
tion of any product of the industry, or the credit terms, values, 
pohcies, or services of any member of the industry, or otherwise, 
having the tendency or capacity to mislead or deceive customers or 
prospective customers. 

3. Commercial Bribery. — Directly or indirectly to give, permit to 
be given, or offer to give, money or anything of value to agents, em- 
ployees, or representatives of customers or prospective customers, or 
to agents, employees, or representatives of competitors' customers or 
prospective customers, without the knowledge of their employers or 
principals, as an inducement to influence their employers or principals 
to purchase or contract to purchase from the makers of such gift or 
offer, or to influence such employers or principals to refrain from 
dealing or contracting to deal with competitors. 

4. Interjerence with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written 
contract between a competitor and his customer or source of supply, 
or interfering with or obstructing the performance of any such 
contractual duties or services. 

5. Secret Rebates. — The secret payment or allowances of rebates, 
refunds, commissions, credits, or unearned discounts, w^hether in the 
form of money or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all purchasers 
on like terms and conditions. 

6. Defamation. — The defamation of competitors by falsely im- 
puting to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations or by 
the false disparagement of the grade or quality of their goods. 



271 

7. Substitution of Material. — The using or substituting of any 
material inferior in quality to that specified by the purchaser of any 
product. 

8. Date of Invoice. — Stating in the invoice of the sale of any product 
as the date thereof a date later than the date of the shipping of such 
product, except as herein specifically provided, or including in any 
invoice any product shipped on a date earlier than the date of such 
invoice, except as herein specifically provided. 

9. Description of Product. — Making any sale or contract of sale of 
any product under any description which does not fully describe 
such product in terms customarily used in the Industry. 

10. Size. — Failure to clearly indicate on bedspreads or draperies 
or on the packages containing bedspreads or draperies the sizes thereof. 

11. Sales Below Cost. —The selUng or offering to sell any product of 
the Industry below cost as may be determined in accordance with 
tliis section, except (provided a statement is made to that effect on 
the invoice) (a) in sales to dispose of any stock in whole or in part for 
the purpose of discontinuing the sale of that particular line of mer- 
chandise, (b) in sales of goods that are damaged and that have deterio- 
rated, (c) in bankruptcy sales or forced sales because of otherwise 
insolvent conditions of the seller. When a uniform and standard 
system of cost accounting, prescribed by the Code Authority, shall be 
approved by the Administrator, every member of the Industry shall 
install a system of accounting which conforms to the principles of and 
is at least as detailed and complete as such system. The Code 
Authority shall, subject to the approval of the Administrator, deter- 
mine the cost factors to be included in the determination of such cost. 

(a) Taxes. — Any Federal, State, or other taxes that have been or 
shall hereafter be imposed upon any merchandise which the manufac- 
turer thereof shaU be required to pay shall be separately itemized on 
each invoice and the amount of such taxes added to the total of such 
invoice. 

12. Samples. — Supplying any samples, in excess of two percent 
(2%) of the initial order, below the cost thereof to the member of the 
Industry as defined in section 11 of this Article. 

13. Shipment.— The making of shipments other than F.O.B. city 
of origin, except that members of the Industry may make local store- 
door deliveries in any local area. The word "local" as used herein 
may be defined from time to time by the regional committee subject 
to the approval of the Code Authority. 

14. Terms of sale. — Selling on more favorable terms than 3/10 
E.O.M. or 2/10/60 extra except that the terms for the Western District 
of the Industry shall be 3/10 or 2/30. Goods invoiced on and after the 
twenty-fifth day of any month may be dated as of the first day of the 
following month. 

15. Adherence to Contract Terms. — The making or completing of 
sales upon any terms except as expressly set forth in the order, con- 
tract of sale, or in the invoice appertaining to such sale. 

16. Consignments, Etc. — The selling or offering to sell any product 
of the Industry on memorandum or on consignment or on conditional 
sale. 

17. Other Unfair Practices. — Nothing in this Code shall limit the 
effect of any adjudication by the Courts or holding by the Federal 
Trade Commission on complaint, finding, and order, that any practice 



272 

or method is unfair, providing that such adjudication or holding is not 
inconsistent with any provision of the Act or this Code. 

Article VIII — ^Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the 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, but without limitation, to the right 
of the President to cancel or modify liis approval of this Code or any 
conditions imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator and 
such notice and hearing as he shall specify, and to become effective on 
approval of the President. 

Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discriminate 
against small enterprises. 

Article X — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
wUl be made impossible of consummation if prices of goods and serv- 
ices increase as rapidly as wages, it is recognized that price mcreases 
should be delayed and that, when made, the same should, so far as 
reasonably possible, be limited to actual increases in the seller's 
costs. 

Article XI — Effective Date 

This Code shall become effective on the tenth day after its approval 
by the President. 

Approved Code No. 79. 
Registry No. 226/1/06. 

O 



Approved Code No. 80 

CODE OF FAIR COMPETITION 

FOR THE 

ASBESTOS INDUSTRY 

As Approved on November 1, 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 Asbestos 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. Frankhn 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 and 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 dmimsfrator. 

The White House. 

Novemler 7, 1933. 

(273) 



October 27, 1933. 
The President, 

The White Hoitse. 
Sir: This is a report of the hearing on the Code of Fair Compe- 
tition for the Asbestos Industry of the United States, conducted in 
Washington on October 19, 1933, in accordance with the provisions 
of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

Employees in the Asbestos Industry are limited to a work week of 
40 hours, except that to meet emergency production requirements, 48 
hours per week are permitted for six weeks in any six months' period 
with time and one third for overtime over 8 hours per day. Over- 
time pay has never previously been paid in this Industry, and is here 
provided to restrict overtime work. 

A tolerance of 10 percent over the 40 hours without overtime pay 
is granted to care and maintenance men, watchmen, engineers, and 
shipping employees, but for these classes of employees overtime at 
time and one third is provided for all hours above 44 per week. 
Highly skilled continuous-process workers may be permitted in 
special cases to work up to 48 hours per week where the limiting of 
hours would restrict j^roduction. 

Outside salesmen and persons in a managerial capacity receiving 
more than $35.00 per week are not limited by the above hours of 
labor, but all office employees receiving less than $35.00 per week are 
limited to a maximum of 48 hours in any week and an average of 40 
hours per week in any six-months' period. 

The minimum wage prescribed for factory workers is 40 cents an 
hour, except for light work not requiring the strength and skill of 
male labor, where 35 cents per hour may be paid to female employees. 
This is not considered as a discrimination against female employees, 
and the provision is made that where female employees perform the 
same class of work as male employees they shall receive the same 
rates of pay. Office employees shall receive under this Code not less 
than $15.00 per week in cities of over 500,000 population, $14.50 in 
cities over 250,000, and $14.00 in cities under 250,000. 

The Code provides that the wage rates of all employees receiving 
more than the minimum rates shall be equitably readjusted, and that 
there shall be no evasion of the Code by reclassification of the func- 
tions of an employee. 

No person under 16 years of age shall be employed in the Industry, 
and no minor under 18 years is to be employed in hazardous occu- 
pations. 

ECONOMIC EFFECT OF THE CODE 

Until the passage of the National Recovery Act this Industry had 
never been organized as a unit. The Industry comprises 58 com- 

(274) 



275 

panies operating 71 plants and having a total invested capital above 
$50,000,000. Its products are widely used as capital goods in the 
chief basic industries of the country. 

Employment in the Industry in 1929 was about 10,000^ and had 
declined to 59 percent in February 1933. Upon the adoption of the 
40-hour week as prescribed in this Code employment rose to 90 per- 
cent of the 1929 level. About 1,000 persons have been reemployed 
under the provisions of this Code. This represents approximately a 
30-porcent increase. 

In May 1933, the average weekly wage in the Industry was $17.49. 
Through the operation of the provisions of this Code this average 
was increased to $19.48, or an increase of about 10 percent in spite 
of the shorter work week. 

FINDINGS 

(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 
Asbestos Industry. 

(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 Kecovery Act. 

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

AdTninistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

ASBESTOS 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 Asbestos Industry, and upon approval by 
the President such provisions shall be the standard of fair compe- 
tition in this Industry. 

Article II — Definitions 

Whenever used in this Code or in any schedule or supplement ap- 
pertaining thereto, the terms enumerated in this Article shall have 
the meanings herein defined unless the context shall otherwise clearly 
indicate. 

Section 1. The term " the President " means the President of the 
United States of America. 

Sec. 2. The term " the Administrator " means the administrator 
of Title I of the National Industrial Recovery Act and at the time 
in office. 

Sec. 3. The term " the Act " means the National Industrial Re- 
covery Act as approved by the President, June 16, 1933. 

Sec. 4. The term " products " means the products listed in Sched- 
ule I hereto attached. 

Sec. 5. The term " the industry " as used herein shall mean and 
include the manufacture and sale by the manufacturer either by him- 
self or by subsidiaries or affiliates of the manufacturer, of the prod- 
ucts listed in Schedule I hereof. 

Sec. 6. The term " Division " means a section of the asbestos indus- 
try comprising a group of manufacturers who manufacture and/or 
sell a group of related products as set forth in Schedule I. A manu- 
facturer who manufactures products in more than one Division shall 
be a member of each such Division. 

Sec. 7. The term "member of the industry" means any person, 
including without limitation any other legal entity, engaged in the 
Asbestos Industry in the United States as defined in Section 5 above. 

Sec. 8. The term " employee " means any person engaged in the 
asbestos industry, as defined in Section 5 above, in any capacity in 
the nature of employee, irrespective of the method of payment of 
his compensation. 

Sec. 9. The term " employer " means anyone by whom such em- 
ployee is compensated. 

Sec. 10. The term " learner ", as used herein, means a person who 
has had no previous experience in the manufacture of asbestos 
products and whose employment as such shall not exceed six weeks. 

(276) 



277 

Sec. 11. The term " the Code " means this Code and all amend- 
ments thereof and all schedules and supplements appertaining 
thereto. 

Seo. 12. The term " member of the Code " means any member of 
the Asbestos Industry who shall become a member of the Code as 
hereinafter provided in Section 1 (c) of Article VI. 

Sec. 13. The term " the effective date " means the second Monday 
after the Code shall have been approved by the President. 

Sec. 14. The term " the Institute " means the Asbestos Institute, 
an unincorporated association having an office in the City of New 
York, State of New York. 

Sec. 15. The " Southern section " means the States of North Caro- 
lina, Tennessee, Arkansas, Oklahoma, Texas, New Mexico, and the 
States south thereof. 

Sec. 16. The '" Northern section " means that part of the United 
States not included in the Southern section. 

Sec. 17. Population for the purpose of the Code shall be deter- 
mined by reference to the 1930 Federal Census. 

Article III — Hours of Labor 

Section 1. Factory employees, mechanical workers, or artisans, 
except as hereinafter provided in sections 2 to 4, inclusive, shall not 
be employed (a) in excess of 40 hours per week, except that to meet 
seasonal requirements or emergencies 48 hours per week for not 
more than 6 weeks in any six months' period shall be permitted if 
the average employment over the six months' period is not more 
than 40 hours per week; (b) in excess of 8 hours in any 24-hour 
period, except that to meet seasonal requirements or emergencies 
more than 8 hours may be worked, provided time and one third is 
paid for overtime in any one day. 

Sec. 2. There shall be a tolerance of 10% additional hours for (a) 
employees engaged in the preparation, care, and maintenance of 
plant, machinery, and production facilities, (b) watchmen, firemen, 
and engineers, and (c) shippers and delivery employees; provided, 
however, that any such work by such employees in excess of an 
average of 44 hours per week over a six weeks' period shall be 
compensated for at the rate of time and one third. 

Sec. 3. The limitation as to hours of labor in any 24 hours shall 
not apply to very special cases where restriction of hours of labor of 
highly skilled workers in continuous processes would unavoidably 
reduce production; provided, however, that employees in such cases 
shall not work more than 48 hours in any one week. 

Sec. 4. The limitation as to hours of labor shall not apply (a) to 
outside sales or sales-service men, technicians (highly skillecl factory 
workers are not to be classed as technicians), nor to persons in a 
managerial, executive, or supervisory capacity who receive more than 
$35.00 per week (foremen regularly engaged in manual labor shall 
not be considered to be in such supervisory capacity), nor (b) to 
employees engaged in emergency maintenance or repair work neces- 
sary because of breakdowns or involving danger to life and prop- 
erty, providing that such emergency overtime work in excess of 48 
hours in any one week shall be paid for at the rate of time and 
one third. 



278 

Sec. 5. No employer shall work any accounting, clerical, office, 
inside sales, or other employee not provided for otherwise in this 
Article III who receives less than $35.00 per week, more than an 
average of 40 hours per week during a six-month period, nor more 
than 48 hours per week in any one week. 

Sec. 6. No employee shall be permitted to work a total number 
of hours in excess of the prescribed number, whether employed by 
one or more employers. 

Article IV — Minimuim Wages 

Section 1. Except as provided in Sections 2 to 6 below, the mini- 
mum wages that shall be paid to factory workers in the Northern 
section by any employer shall be at the rate of 40 cents per hour or of 
$16.00 per week of 40 hours of labor ; except that for such light work 
as does not usually require the strength and skill of male labor, and 
for which male labor has not been used, the minimum rate paid to 
female employees ma}- be at the rate of 35 cents per hour or at $14.00 
per week of 40 hours of labor. 

Sec. 2. In the Southern section the above-mentioned minimum 
rates shall be 2^4 cents per hour lower. 

Sec. 3. The above Sections 1 and 2 establish minimum rates of pay, 
regardless of whether the employee is paid a time rate or for piece- 
work performance. 

Sec. 4. The minimum wage that shall be paid by employers to any 
accounting, clerical, office, sales employee in any office, department, or 
establishment, or other employee not provided for otherwise in this 
Article IV, shall be at the following rates in cities of the sizes listed 
below and their immediate trade areas : 

Over 500,000 population, not less than $15.00 per week. 

Between 250,000 and 500,000, not less than $14.50 per week. 

Under 250,000 population, not less than $14.00 per week. 

Sec. 5. No employees in the classes mentioned in Section 4 of this 
article shall have their compensation reduced on account of any reduc- 
tion in their weekly hours of employment made because of the require- 
ments of Section 5, Article III. 

Sec. 6. The minimum rate of pay paid to office or messenger boys 
and girls and learners (the latter for not over the six weeks' period 
specified in the definition of learners) may, in the case of those mem- 
bers of the Industry where the total of such classes never exceed 
5% of their total emj^loyees, be 20% less than the rates specified in 
Sections 1 and 2 above for learners, and Section 4 above for office 
or messenger boys and girls. 

Sec. 7. No distinction in rates shall be made between male and 
female employees where the same class of work is performed, regard- 
less of whether compensation is calculated on an hourly, weekly, 
monthly, or piecework basis. 

Sec. 8. Unless such readjustment has already been made because 
of the operation of the President's Reemployment Agreement, the 
wage rates of all employees receiving more than the minimum rates 
prescribed above, but less than $35.00 per week, shall be equitably 
readjusted. 



279 

Sec. 9. There shall be no evasion of the Code by any employer by 
reclassification of the functions of an employee. An employee shall 
not be included in one of the classifications exempted from the pro- 
visions of this Code unless the identical functions were identically 
classified on June 16, 1933. 

Article V — Child IjAbok 

No person under 10 years of age shall be employed in the Industry, 
and no person under 18 years of age engaged in unsanitary occu- 
pations or when operating hazardous manufacturing machinery. 

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority 
is hereby set up to cooperate with the Administrator in the adminis- 
tration of the Code. 

Section 1. Organization and constitution of the Code Authority. 

(a) The Code Authority shall consist of six voting members 
selected as specified in Article VI, Section 1 (e), and such additional 
members, if any, not exceeding three, as shall be appointed by the 
President. Such additional members shall not be vested with voting 
rights. 

(b) For purposes of administering the Code and selecting mem- 
bers of the Code Authority, the Asbestos Industry is divided into 
the following divisions : 

Asbestos Paper and Allied Products Division. 

Asbestos Cement Products Division. 

Asbestos Magnesia Products Division. 

Asbestos Textile Products Division. 

Asbestos Brake-Lining and Related Friction Products Division. 

The products manufactured by members of each of said Divisions 
are set forth under the designated Divisions in Schedule I hereto 
attached. 

(c) Every member of the Industry shall be eligible to member- 
ship in the Code and there shall be no inequitable restrictions upon 
such membership. Any member of the Industry desiring to become 
a member of the Code may do so by signing and delivering to the 
Institute or to the Code Authority a letter substantially in the 
form set forth in Schedule II, annexed hereto. 

(d) Every member of the Industry who manufactures one or more 
of the products listed in Schedule I under a designated Division 
shall be a member of such Division. 

(e) At least five voting members of the Code Authority shall 
be selected from members of the Code. One voting member shall 
be elected by a two-thirds vote of the members of each Division 
of the Code. A democratic (majority) method of election and term 
of office shall be determined by the members of each Division. The 
sixth voting member shall be elected by a majority vote of the five 
so elected. 

(f ) The Code Authority shall adopt its own rules of procedure and 
may appoint such officers or agencies as it may deem necessary prop- 
erly to administer the Code, subject to review by the Administrator. 

29918 296-180 34 



280 

It shall delegate to a Sub-Code Authority of each member Division, 
consisting of three members elected by each Division, the adminis- 
tration of all articles except III, IV, V, and X of the Code, subject 
to review by the Administrator. All contacts with the Administra- 
tor relating to the administration of Articles III, IV, V. and X 
of the Code shall be by the Code Authority. 

(g) The members of each Division shall adopt their own rules 
of procedure with respect to administering the Code, not inconsistent 
with the Act or with the Code, subject to review by the Adminis- 
trator. Each Division ma}'^ appoint agents, not members of the 
Industry, to investigate complaints of violation of the Code by 
members of the DiA'ision under rules which shall not be inconsistent 
with the provisions of the Act or of the Code. 

(h) All members of the Code shall bear their proportionate share 
of the expense of maintenance of the Code Authority and its activ- 
ities. Such expenses shall be assessed upon an equitable basis (pro- 
portionate to dollar sales or volume of production as Divisions may 
determine) by the Code Authorit3^ subject to review by the Admin- 
istrator. Assessments shall be paid by members of the Code in the 
manner and at such times as shall be directed by the Code Authority. 

Sec. 2. The Code Authority shall have the following duties and 
powers to the extent permitted by the Act and subject to review by 
the Administrator. 

(a) With a view to keeping the President and the members of 
the Code informed as to the observance or nonobservance of the 
Code and as to whether the members of the Industry are taking ap- 
propriate steps to effectuate the declared policy of the Act. the Code 
Authority shall report to the Administrator at such times and con- 
cerning such conditions in the Industry as he may from time to time 
require. Each member of the Industry, subject to review by the 
Administrator, shall file in such office as the Code Authority may 
designate and at such time, in such form and for such periods as 
required by the Code Authority, duly certified reports with respect 
to wages, iiours of labor, conditions of employment, number of em- 
ployees, production, and other matters pertinent to the proper super- 
vision of the Industry as determined by the Code Authority. Any 
additional special reports required by the Administrator will be 
supplied without expense to the Code Authority. In addition to 
information required to be submitted to the Code Authority, there 
shall be furnished to Government agencies such statistical informa- 
tion as the Administrator may deem necessary for the purposes 
recited in section 3 (a) of the Act. 

(b) All confidential information of any natiii-c so i-equosted shall 
be collected through agents not connected with the Industry, selected 
b}^ the Code Authority, and such information .shall be kept confiden- 
tial by the said agents except when required by the Code Authority 
for the proper administration of the Code. Only such information 
shall be requested by the Code Authority which is appropriate to the 
proper supervision of the Industrv or to the administration of the 
Code. 

(c) The Code Authority may designate agents not members of 
the Indu.stry to investigate complaints of violations of the Code. 
The member.s of the Industry shall facilitate such inA^estigations by 



281 

opening their correspondence, books, and accounts relating to alleged 
violation for examination by such aullioi-ized agents and by furnish- 
ing relevant information. All such information shall be kept con- 
fidential by the agents except that in the event of any such viola- 
tion being substantiated, the Code Authority shall be informed 
and may present evidence thereof to tiie proper dei)artment of the 
Government. If, upon such investigation, any complaint of a viola- 
tion of the Code shall be substantiated in any material respect, the 
member of the Code guilty of such violation shall pay the cost of 
the investigation ; otherwise the cost shall be borne by the complain- 
ant. Tiie guilty member shall be subject to all penalties provided for 
in the Act and "if a member of the Code, any other penalties provided 
foi- by said member's Division of the Code. 

(d) The Code Authority shall study conditions in the Industry 
and, subject to approval by four of its voting members and by a 
three-fourths vote of the Code members of each Division present at 
a meeting expressly called for that purpose, shall make such recom- 
mendations from time to time to the Administrator as it deems desir- 
able to further the policies of the Act, which, upon the approval of 
the President or the Administrator or such other lawful officer as 
may be constituted, shall become a part of the Code and shall have 
full force and effect as provisions hereof. 

Sec. 3. Appeals. 

(a) Any interested party shall have the right of complaint to the 
Code Authority or a Sub-Code Authority, and a prompt hearing and 
decision thereon, under such rules and regulations as the Code Au- 
thority shall prescribe, in respect to any act of any member of the 
Industry or in respect to any agent or agency designated by the Code 
Authority or Sub-Code Authority to act in its behalf. 

(b) Any interested partj' shall have the right of appeal to the 
Administrator, under such rules and regulations as he shall prescribe, 
with respect to any decision, rule, regulation, order, or finding made 
by the Code Authority or a Sub-Code Authority. 

(c) Any member of the Industry who promptly files his appeal 
with the Code Authority or Sub-Code Authority and cooperates to- 
w^ard prompt decision thereof and who makes his appeal on the 
grounds that said restrictions or rulings will handicap his legitimate 
methods of operation or distribution tending toward jeopardizing 
his existence, shall not be bound by any restrictions which arise 
from the Merchandising Plan or Rulings of the Sub-Code Authority 
provided for herein in this Article VI, Section 4 (b) but supple- 
mental to and not specifically covered by this Code, until such 
appeal has been heard and finally disposed of. 

Sec. 4. Codes of Ethics and Merchandising Plans. 

(a) The Code Authority may, with the approval of four of its 
voting members and by a three-fourths vote of the Code members of 
each Division present at a meeting expressly called for that pur- 
pose, and subject to review by the Administrator, formulate a Code 
of Ethics for all members of the Industry which will amplify and 
define the provisions of Article VII hereof. 

(b) The members of each Division of the Industry may prepare 
Simplification and Standardization Specifications and a Merchan- 
dising Plan for such Division, incorporating the merchandising poli- 
cies best calculated to promote fair competition in such Division. 



282 

Subject to the review of the Administrator, every such Merchandis- 
ing Plan or Simplification and Standardization Specifications, when 
approved b}^ three fourths of the Code members of the Division and 
filed with the Sub-Code Authority, shall be binding upon all mem- 
bers of the Industry who are members of the Division to which such 
Merchandising Plan or Specifications apply. Changes may be made 
in any such Merchandising Plan or Specifications in the same man- 
ner that the originals were established. 

Sec. 5. Any notice, demand, or request required or permitted to 
be given to or to be made upon any member of the Industry shall 
be sufficiently given if mailed by registered mail, postage prepaid, 
addressed to such member of the Industry, at his address on file 
with the Secretary of the Code Authority. 

Article VII — Unfair Trade Practices 

For the purposes of the Code the following shall constitute unfair 
trade practices: 

Section 1. To invoice fictitiously, ship in excess of quantities in- 
voiced, price at prices for a trade classification to which buyer is not 
properly entitled, permit unwarranted deductions, make fictitious or 
excessive allowances or guarantees. 

Sec. 2. To grant secret rebates in any form, give or sell other 
materials at lower than prevailing prices to influence a sale, give 
improper "cut backs" or rebate to any buyer for stock on hand 
at date of any price decline. . 

Sec. 3. To subsidize buyers by special donations, give premiums, 
lavishly entertain a customer or prospective customer or their em- 
ployees, split commissions, pay part or all of a customer's or prospec- 
tive customer's expenses, buy of a customer or prospective customer 
other commodities at higher than prevailing open market prices, 
make improper advertising allowances, give gratuities or make loans 
or otherwise improperly influence business, consign stock or allow 
other than published terms, or fail to prescribe definite terms, or 
make improper price-maintenance guarantees. 

Sec. 4. (a) To sell or offer any product with intent to deceive. 

(b) To defame a coinpetitor. 

(c) To purchase a stock of competitor's materials from a customer 
or prospective customer. 

(d) To misbrand material or to imitate the trade marks, trade 
names, slogans, or advertising matter of a competitor. 

(e) To improperly entice away a competitor's employees. 

Sec. 5. To sell for export until the buyer has agreed not to resell 
the goods within the United States. 

Sec. 6. Using or employing any unfair trade practice shall be a 
violation of the Code and any member of the Industry who shall 
directly or indirectly through any officer, employee, agent, or repre- 
sentative, knowingly or willfully use or employ any such unfair 
practices shall have violated the Code. 

Article VIII — Publicity of Prices, Terms, and Conditions of Sale 

The purpose of the following publicity requirements of the Code 
is to insure complete publicity of all prices, terms, and conditions 



283 

of sale to manufacturers and to the trade concerned, and thus to 
promote fair competition. The trade concerned shall be all the trade 
of the member of the Industry directly aft'ected by sucli prices, terms, 
or conditions of sale in the territory to which th(> same a[)})ly. 

Section 1. Each member of the Industry shall have th(! right in- 
dividually to establish new prices, terms, and conditions of sale from 
time to time not inconsistent with the provisions of the Code. 

Sec. 2. No member of the Industry shall sell, pay a rebate, or 
allow a deduction at any time to any person except upon prices, 
terms, and conditions of sale then in effect and/or published in such 
manner as may hereinafter be required by the Code. 

Sec. 3. Upon the effective date of the Code every member of a 
Division of the Industry shall forthwith file in the office designated 
for such Division a schedule of his prices, terms, and conditions of 
sale then in effect for distribution to all members of the Division in 
the manner and to the extent determined by the Sub-Code Authority 
of such Division. The members of each Division may determine the 
extent to which such schedules shall be open to inspection by members 
of the trade. 

Sec. 4. In the event of any change being made by a member of the 
Industry in any price, term, or condition of sale, he shall, if so 
determined by the members of the Division of which he is a member, 
do either one or both of the following: 

(a) Immediately publish to the trade concerned every such change 
and coincidentally file in the office designated for his Division full 
and complete copies of every such change in price and terms and 
conditions of sale for immediate distribution to the members of the 
Division; or 

(b) File full and complete copies of every contemplated change 
in prices, terms, and conditions of sale in the office designated by his 
Division within such periods as may be designated for such Division 
but not exceeding 5 days in advance of the effective date of such 
change. Copies thereof shall in such cases be immediately filed with 
the Sub-Code x\uthority of the Division and then distributed to the 
trade concerned as required by the Division, in the manner provided 
in Article VIII, Section 3. 

When a member of the Industry is a member of more than one 
Division the publicity requirements of any Division of which he shall 
be a member shall apply only to changes in prices, terms, and condi- 
tions of sale of products listed under such Division in Schedule I of 
the Code. 

Merchandising Plans adopted pursuant to Section 4 of Article 
VI, containing provisions with reference to publicity of prices, 
terms, or conditions of sale, shall be controlling with respect to the 
members of the Division for which any such Merchandising Plan 
may be established, even though such provisions supplement or vary 
the publicity requirements of this Article VIII. 

Sec. 5. After dates to be specified by each Sub-Code Authority 
for its Division, no member of the Division shall sell to any buyer 
for resale more than one small introductory order unless the buyer 
has agreed in writing (1) to make no improper use of the member's 
merchandising plans, prices, terms and/or conditions of sale or 
otherwise misrepresent the policies or products of the member; (2) 



284 

to sell from a list no higfher than that from which the products 
were purchased; (3) to observe all of the provisions of this Code 
insofar as they are applicable. 

Article IX — Selling Below Cost 

Section 1. No member of the Industry shall initiate a price for 
the sale of any product to the trade at a net price after all discounts 
which shall be below the said member's own individual cost. Said 
cost shall be determined in accordance with any uniform cost account- 
ing methods as may be approved by a three-fourths vote of the mem- 
bers of each Division and subject to review by the Administrator. 
Each such Division shall by the same method designate the cost 
accounting period to be used from time to time; provided, however, 
that any member of the Industry may sell below his own individual 
cost to meet prices established on products of essentially similar 
grade and quality by another member of the Industry. 

Sec. 2, Complaints may be filed with a Subcode Authority against 
any member of its Division of the Industry to the effect that said 
member has made a sale at a price believed to be below said mem- 
ber's current total cost and not to meet existing competition in the 
Industry. Said Subcode Authority may in its discretion investigate 
such complaints, and if it finds that said prices were not made to 
meet existing competition in the industry, it shall designate a firm 
of certified public accountants to investigate whether or not the 
prices complained of were below said member's current total cost in 
conformity with sound accounting practice. The said accountants 
shall report their conclusions to the Subcode Authority without dis- 
closing confidential details, and if the Subcode Authority finds after 
receiving such report, that such member actually sold below his cur- 
rent total cost and not to meet existing competition in the Industry, 
then the cost of the investigation shall be paid by said member if a 
member of the Code, otherwise by the complainant. The guilty 
member shall be subject to all penalties provided for in the Act, and 
if a member of the Code, any other penalties provided for by said 
member's Division of the Code. 

Article X — Labor Pro\t[sioxs 

Section 1. Employees shall have the right to organize and bargain 
collectively 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. 

Sec. 2. 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. 

Sec. 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. 

Sec. 4. Within each state this Code shall not supersede any laws 
of such state imposing more stringent requirements on employer 



285 

regulating the age of employees, wages, hours of work, or help, fire, 
or general working conditions than under this Code. 

Sec. 5. Each employer will make available without charge to his 
employees copies of the Code under which employer is operating. 

Article XI — General 

Section 1. For the purposes of the Code, all transactions between 
manufacturers who are members of the Industry and their respective 
subsidiaries and affiliates, which shall be defined in the respective 
divisional' merchandising plans as described in Section 4 (b) of 
Article VI, shall be considered as interdepartmental transactions of 
the manufacturer. No sucli manufacturer shall sell to such sub- 
sidiary or affiliate unless such subsidiary or affiliate shall agree to and 
does conform to the pertinent provisions of this Code. 

Sec. 2. Nothing contained in the Code shall be construed as pro- 
hibiting any member of the Industry from exercising its and/or 
their lawful patent rights or as requiring any member of the Industry 
to do any act in conflict with the terms of any patent licensing 
agreement. 

Sec. 3. Section 4 of Article VI and Articles VII, VIII, and IX of 
the Code shall not apply to products exported from the United 
States. 

Sec. 4. Nothing contained in the Code shall be deemed to con- 
stitute any of the members thereof partners for any purpose. No 
member of the Code shall be liable in any manner by reason of his 
participation therein to anyone for any act of any member or 
agent of the Code Authority. No member of the Code except as 
otherwise provided herein and no member of the Industry or of the 
Code Authority and no agent of the Industry shall be liable to 
anyone or in any manner other than as provided in the Act, or in 
the Code, for any act or failure to act under the Code. 

Sec. 5. Where the costs of executing contracts entered into in the 
Asbestos Industry prior to the effective date are increased by the 
application of the provisions of the Code to the Industry, 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 arbitral proceedings or otherwise. The Code Authority 
is constituted an agency to assist in effecting such arbitral pro- 
ceedings and adjustments. 

Sec. 6. As required by Section 10 (b). Title I of the Act, the 
following provision is contained in the Code: The President may 
from time to time cancel or modify any order, approval, license, 
rule, or regulation issued under this Title, 

Sec. 7. By presenting the Code the members of the Industry 
assenting thereto do not thereby consent to any modification thereof, 
and they reserve the right to object individually or jointly to any 
such modification. 

Article XII — Amendments to the Code 

It is contemplated that from time to time supplementary provi- 
sions to the Code or additional codes may be submitted for the 
approval of the President to prevent unfair competition in prices or 



286 

other unfair or destructive practices and to effectuate the other 
purposes and policies of Title I of the Act. Such provisions of the 
Code as are not required to be included therein by the 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. The provisions of 
the Code shall remain in effect unless and until so modified or 
eliminated, or until the expiration of the Act; namely, June 16, 1935, 
unless sooner terminated in accordance with law for such case made 
and provided. 

Approved Code No. SO. 
Registry No. 1002/1/01. 



SCHEDULE I 
Divisions of the Asbestos Industry and Products Included 

1. Asbestos Paper and Allied Products: 

All Asbestos Papers 

All Types of Asbestos Millboard 

Asbestos and Wool Felt Pipe Covering 

Air Cell Pipe Covering 

Asbestos Laminated Pipe Covering 

Pipe Covering Accessories 

Asbestos Insulating Cement 

2. Asbestos Cement Products : 

Asbestos Shingles 
Asbestos Corrugated Lumber 
Asbestos Flat Lumber 
Asbestos Wallbnard Plain 
Asbestos Board Pre-Decorated 
Impregnated Asbestos Lumber 
Asbestos Encased Insulating Board 
Miscellaneous Molded Products 

3. Asbestos Magnesia Products : 

85% Magnesia Pipe Covering, Blocks and Cements 
High temperature Insulation, Blocks and Cement 
Insulating Bricks 
Carbonate of Magnesia 

4. Asbestos Textile Products : 

All Types of Asbestos Roving 

All Types of Asbestos Yarn 

All Types of Asbestos Cloth 

All Types of Asbestos Listing 

All Types of Asbestos Tubing 

All Types of Asbestos Cord 

Carded Asbestos Fibre Made from Crude Asbestos 

5. Brake Lining and Related Friction Products : 

Brake Lining and/or Clutch Facings, excepting only friction elements made 
exclusively of metal or vpood. 

(287) 



SCHEDULE II 

To the President of The Asbestos Institute, 

22 East Fortieth Street, Netv York, N.Y. 

Dear Sir : The undersigned, desiring to become a member of the Code of Fair 
Competition of the Asbestos Industry, a copy of which is annexed hereto 
marked "A", hereto assents to all of the provisions of the said Code. 

In consideration of the benefits conferred by such membership the under- 
signed agrees to become a member of the Code and agrees to be bound by all of 
the provisions thereof effective as of the date on whicli the Code becomes 
effective after approved by the President of United States, or as of the date 
on which this letter shall be delivered, if delivery thereof shall be made 
subsequent to the date on which the Code shall have become effective. 

Very truly yours, 



(288) 
O 



Approved Code No. 81 
CODE OF FAIR COMPETITION 

FOR THE 

COPPER AND BRASS MILL PRODUCTS INDUSTRY 

As Approved on November 2, 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 Copper and Brass Mill Products In- 
dustry, 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 perti- 
nent 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, FrankUn 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, 

Administrator. 
The White House, 

November 2, 1933. 

(289) 



29170° 29G-SG 34 



November 1, 1933. 
The President, 

The White Home. 
Sir : This is a report on the proposed Code of Fair Competition for 
the Copper and Brass Mill Products Industry, and on the hearing 
conducted thereon in Washington, D.C., on August 31, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

RESUME OF THE CODE AS TO WAGES AND HOURS 

The Code provides for a 40-hour week and an 8-hour day, except 
as to outside salesmen, executive and supervisory staffs, with a fur- 
ther provision that watchmen and power-house employees may work 
48 hours in any week. Any employee may work in excess of the 
maximum hours in case of emergencies, but in such event payment of 
time and one-half for overtime is provided. 

Minimum wages are at the rate of 40 cents per hour for males 
and 35 cents for females, unless the hourly rate for the same class of 
work on July 15, 1929, was less than the respective minima, in which 
case the minimum rates are not to be less than the hourly rates on 
July 15, 1929, and in no event less than 35 cents for males and 30 
cents for females. 

The minimum wages provided are guaranteed whether the em- 
ployee is compensated on a time rate, piece rate, or salary basis. 

Child labor is prohibited. The continued employment of physi- 
cally incapacitated employees and employers in clerical and labora- 
tory work and messengers who ma}^ be under 18 years of age is per- 
mitted, provided the total number of both classes of employees does 
not exceed 5 percent of the total number of employees. 



GENERAL STATEMENT AND ECONOMIC REPORT 

This is the Copper and Brass Rolling Mill Industrj^ as more spe- 
cifically covered by the definition in the code. The code was sub- 
mitted by the Copper and Brass Mill Products Association, an 
organization including in its membership more than 95 percent of 
the production of the industr}'. As of July 31, 1933, it represented 
a capital investment of $152,000,000 and on that date the member 
firms employed approximately 24,000 persons. 

Pertinent data on employment, wages, and hours, as submitted by 
the industry, is as follows : 





Number 
employed 


Minimum 
wage rates 


Average 
hours ef 

work 


1928 


25, 915 


39. 7 


50-55 


1929 .. .. .. 


28, 324 39. 9 

18,782 32.4 

23. 782 38. 1 

■ 24,000 40.0 


50-55 


January, 1933 ... 


38 


August 15, 1933 


42 


Under Code at August 15, 1933, rate of operation .._ 


40 











(290) 



291 

Operation under substantially the provisions of the Code has 
resulted in the employment of approximately 5,000 additional 
employees since the first quarter of the year and an increase in the 
annual payroll of the industry of approximatel}' $4,500,000 is antici- 
pated as a result of the Code. 

The Executive Committee of the Copper and Brass Mill Pro(hicts 
Association are set up as a planning and fair-practice agency to 
cooperate Avith the Administrator in the enforcement and adminis- 
tration of the code and all acts of the administrative group are made 
subject to the disapproval of the Administrator. 

Certain products produced by the industry are used both for 
electrical and other purposes, and a difference of opinion arose be- 
tween the manufacturers involved as to whetlier these j^roducts should 
be subject to the electrical code rather than the code of this industry. 
The different firms interested have agreed that they will settle the 
question among themselves and no difficulty of administration is 
anticipated. 

I believe that the code is fair to Industry, to Labor, and to the 
Consumer, and in accordance with the intent and purpose of the 
National Industrial Recovery Act. 

I find that : 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including without limita- 
tions, 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 
Copper and Brass Mill Products Industry ; and that 

(c) The Code as recommended is not designed to promote monop- 
oplies 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. 

Accordingly, I hereby recommend the approval of this proposed 
Code of Fair Competition for the Copper and Brass Mill Products 
Industry. 

Respectfully, 

Hugh S. Johnson, 

A dmiii is tra tor. 



CODE OF FAIR COMPETITION 

FOR THE 

COPPER AND BRASS MILL PRODUCTS INDUSTRY 

Article I — Definitions 

Section 1. The term " the President " means the President of 
the LTnited States of America. 

Sec. 2. The term " the Industry " means the industry of rolling, 
drawing and forming, and re-rolling and re-drawing, for the sale in 
the open market, mill products, including sheets, strips, rods, wire, 
pipe, tubes and shapes of copper, brass, bronze or related alloys. 
It shall not include the manufacture of wire and cable of copper 
or copper alloy for electrical transmission. 

Sec. 3. The term " manufacturer " includes all those engaged in 
manufacturing in the Industry as defined above. 

Sec. 4. The term " Executive Committee " means the Executive 
Committee of the Copper and Brass Mill Products Association. 

Sec. 5, The term "Administrator " as used in this Code means 
the Administrator appointed by the President to administer Title 
I of the National Industrial Recovery Act, and at the time in office. 

Article II — General Purpose 

Section 1. This Code is adopted pursuant to Title I of the 
National Industrial Recovery Act, ancl shall apply to all manufac- 
turers. 

Sec. 2. It is the purpose of this Code to set up standards of fair 
competition which will improve the conditions of employment of 
labor, eliminate unfair competitive practices, safeguard the interests 
of the buying public through an open and simple price structure, 
and otherwise rehabilitate the Industry, so as to carry out the policy 
of the National Industrial Recovery Act. 

Article III — ^Labor and Employment 

Section 1. Minimum Age LiTnit. — No person under eighteen years 
of age shall be employed, except that in clerical and laboratory work 
and for messengers the minimum age for employment shall be sixteen 
years, provided, however, that where a State law provides a higher 
minimum age no person below the age specified by such State law 
shall be employed within that State. 

Sec. 2. Old and Disahled Employees. — The Industry heretofore 
has pursued the policy of retaining employees of long service records 
who have become incapable of full productive effort because of old 
age or physical disability by giving them work which is within their 
abilities to perform. This policy will be continued. 

Sec. 3. Minivium Wages.— It is agreed that the following paragraph 
establishes a guaranteed minimum rate of pay regardless of whether 
the employee is compensated on the basis of a time rat« or piecework 
performance or salary basis. 

(292) 



293 

The minimum wage of any male employee 18 years of ao;e and over 
in the Industry shall be 40(,* per hour of work and the minimum wage 
of any female employee eighteen years of age and over shall be ;>5^' jjer 
hour of work, unless the hourly rate for the same class of work on 
July 15, 1929 was less than the respective one of these minima, in 
which latter case the minimum shall not be less than the liourly rate 
on July 15, 1929 and in no event less than .35^' for malos and ;>0^ for 
females; provided, however, that the difl'erence in the above minimum 
wages shall not in any way be considered as a discrimination by reason 
of sex, and where in any case Avomen do substantially the same work 
or perform substantially the same duties as male employees they shall 
receive the same wage as men receive for doing such work or perfoi^m- 
ing such duties. The mininnmi wage for any employee Ijetween the 
ages of sixteen and eighteen years, as classified in Section 1 of this 
Article, and for old or partially incapacitated employees, as classi- 
fied in Section 2 of this Article shall be not less than 80 percent of such 
minimum wage, but the total number of such employees shall not in 
any calendar month exceed 5 percent of the total number of employees ; 
provided, however, that where a State law provides a higher mini- 
mum wage no person shall be employed in that State at a lower wage 
than that specified by such State law. 

Sec. 4. Maximum Hours of Work. — The maximum hours that any 
employee, except outside salesmen, executive and supervisory staffs, 
shall work in any one day shall be eight hours, and in any calendar or 
pay-roll week 40 hours ; provided, however, that watchmen and power 
house employees may work more than 8 hours per day and more 
than 40 hours per week, but not in excess of 48 hours in any week 
without overtime payment of emploj^ees. In case of emergencies of 
any character, such, for example, as those arising from the need of 
repairs or of meeting unusual requirements of peak production or 
shipment, any employee, upon request of the employer, may work a 
total number of hours greater than 8 hours in any one day, or 40 hours 
in any one calendar or pay-roll week, the excess work in such case 
over 8 hours in any day or over 40 hours in any one calendar or pay- 
roll week to be paid for at one and one-half the regular hourly rate ; 
but this provision shall not be construed to require more than one 
overtime payment for the same overtime work, and shall not apply 
to watchmen and power house employees except for time in excess of 
48 hours per week. 

Sec. 5. Emploj^ees 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. 

Sec. 6. 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. 

Sec. 7. 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. 8. There shall be an equitable adjustment of wages above the 
minimus herein prescribed, to the end that so far as may be equi- 



294 

table the differentials which now exist between the wage rates paid to 
skilled workers and those paid for unskilled labor shall be preserved. 

Article IV — Sales Terms and Conditions 

Section 1. Credit Terms. — All manufacturers shall adopt and 
maintain uniform credit terms, to be established by the Executive 
Committee. Such credit terms shall clearly appear on all quotations, 
contracts, invoices, and acceptances of orders. 

Sec. 2. Terms and Conditions of Contract. — All manufacturers 
shall adopt and maintain fair and equitable uniform contract terms 
and conditions to be established by the Executive Committee. 

Sec. 3. Defaults. — Neglect by manufacturers to enforce con- 
tracts, or variation from the terms or conditions of contracts when 
established, as hereinbefore provided, as a means of evading price 
schedules or securing the customer's favor, are forbidden as unfair 
competition. 

Sec. 4. Secret Rebates. — No manufacturer shall grant secret rebates 
or concealed favors to customers. 

Sec. 5. Uniforin Practices. — It is the policy of this Code to bring 
about uniformity on the part of all manufacturers in regard to con- 
signments, freight allowances, the granting of options, and other 
uniform fair and equitable sales practices, including treatment of 
distributors. 

Article V — Price Schedules 

Every manufacturer shall issue and distribute to the trade, and 
shall file with the Executive Committee, price schedules clearly stat- 
ing all products for sale by such manufacturer, the prices therefor, 
and the quantities to which such prices apply, and also the prices 
which such manufacturer offers to pay for scrap. Each manufac- 
turer, upon issuing new price schedules or any revision thereof after 
the effective dates fixed as hereinafter provided in this Article, shall 
immediately file a copy of such schedules or revisions with the Execu- 
tive Committee. 

Sales directly or indirectly by a manufacturer of his products or 
purchases of scrap at prices other than those stated on the latest price 
schedules of such manufacturer filed with the Executive Committee 
are forbidden as unfair competition. Sales shall be deemed to include 
finished mill products supplied by a manufacturer to his subsidiary or 
a department for reworking, and such sales shall not be made at prices 
less than those stated on such manufacturer's latest price schedules 
filed with the Executive Committee. 

Owing to the complexity of manufacturer's price schedules, time 
will be required for the construction of complete price schedules to 
conform with this Article V. Therefore, the provisions of this Code, 
insofar as they depend upon the price schedules provided for in this 
Article V, shall not become effective as to the respective products 
until dates which shall be fixed from time to time by the Executive 
Committee for each such product. The Executive Committee shall 
give written notice of every such effective date to each manufacturer 
who shall be a member of the Copper and Brass Mill Products Asso- 
ciation, or if not a member, whose address shall be recorded with that 
Association. 



295 

On the effective dates fixed for the respective products the price 
schedules for each such prochict fiJed by each manufacturer shall 
apply to all unshipped material on contracts outstanding on such 
date entered into subsequent to the effective date of this Code, but 
in no case shall such contracts be filled at prices lower than the base 
prices with the qualifyin<ij extras in the contract. 

The Executive Committee shall consider the subject of contracts in 
existence on the effective date of this Code, and shall make recom- 
mendations to the Association as to the disposition of such contracts. 

It is clearly understood that each manufacturer shall be free at all 
time to name the sale prices for his products and his purchase prices 
for scrap ; but such prices shall be stated in price schedules to be filed 
with the Executive Committee, and shall be observed, as hereinabove 
provided. 

Article VI — Price Protection 

The practice of giving to customers protection against advance in 
price and guaranty against decline in price is generally injurious, and 
is forbidden as unfair competition, except as specifically permitted by 
the price schedules referred to in Article V in the case of sales to dis- 
tributors and sales under options in connection with job contracts. 

No manufacturer shall enter into any understanding or agreement 
with a customer that a contract or order accepted from such customer 
is to be binding only in case of an advance in price over the price 
named in such contract or order. Where a contract or order is in 
good faith put into transit to the manufacturer, the manufacturer 
may accept such contract or order, notwithstanding an advance of 
price between that time and its receipt by the manufacturer. A 
manufacturer may accept a contract or order based upon a quotation 
offered by him, provided the customer accepts the quotation promptly 
and in good faith, notwithstanding a price advance between the date 
of the quotation and the acceptance thereof by the customer. Except 
as hereinbefore provided, no manufacturer after an advance in his 
price shall accept a contract or order at the price effective prior to 
such advance. A manufacturer may accept a contract or order at 
his price in effect at the time of the receipt thereof, notwithstanding 
the price has declined below the price named in such contract or 
order. 

Article VII — Distributors 

The selling of the products of the industry to distributors at prices 
lower than prices given to other customers is recognized as a proper 
trade practice, provided such lower prices are fully and clearly set 
forth in the price schedules of the manufacturer as provided in Article 
V. No manufacturer shall give such lower price to any buyer unless 
he be a distributor of acceptable credit, regularly engaged in the 
w^holesale business and carrying adequate stocks of the manufac- 
turer's products. 

"Whereas, the great preponderance of sales by manufacturers in 
this industry is made without the intervention of distributors and 
the sale by distributors, where such services are used, at a price less 
than the manufacturer's published price schedules would unfairly 
break down the open price structure provided for in Article V hereof, 
any manufacturer may enter into an agreement with a distributor by 



296 

which such distributor may agree that he will sell the products pur- 
chased from such manufacturer at not less than the prices contained 
in the published price schedule of such manufacturer in effect at the 
time of an}' such sale. 

Article VIII — Intekmember Sales 

Sales of mill products by any manufacturer to other manufacturers 
for resale in the same form as purchased, may be made on any basis 
mutually satisfactory to them. 

Article IX — General Unfair Practices 

Section 1. Adherence to Standards. — Deviation from standard 
specifications to be established by the Copper and Brass Mill Products 
Association for products of the Industry for the purpose of evading 
the provrsions of this Code is forbidden as unfair competition. 

Sec. 2. Lump Sum Bidding. — W\ bids shall be based on the price 
schedules showing each item separately and items shall not be lumped 
for bidding in any manner other than provided in such price schedules. 

Sec. 3. Trade Marks and Trade Names. — The imitation of the 
trade marks or trade names of other manufacturers having the ten- 
dency to mislead or deceive customers or prospective customers, or 
consumers, or the tendency injuriously to affect the business of such 
competing manufacturers, is prohibited as an unfair method of 
competition. 

Sec. 4. False Laheling. — The false marking, labeling, or branding 
of any product which has the tendency to mislead or deceive cus- 
tomers, or prospective customers, or consumers as to the quality, 
size, material, character, or grade of such product, is prohibited as an 
unfair method of competition. 

Sec. 5. False Advertising. — The making or causing or permitting to 
be made or published of any false, untrue, or deceptive advertisement, 
or the assertion in such advertisement of exaggerated claims, concern- 
ing the grade, quality, character, material, origin, or size, which has 
the tendency to mislead or deceive customers, or prospective cus- 
tomers, or the ultimate retail purchasers, or the tendency to injure 
the business of a competing manufacturer, is prohibited as an unfair 
method of competition. 

Sec. 6. Commercial Bribery. — The direct or indirect giving, per- 
mitting to be given, or offering of money or anything of value, by a 
manufacturer, or his agents, employees, salesmen, or representatives, 
to the agents, employees, buyers, or representatives of customers or 
prospective customers, or to the customers themselves, for the pur- 
pose of inducing such customers, or their agents, employees, buyers, 
or representatives, to purchase or contract to purchase products from 
the manufacturer making such gift, or suffering the same to be made, 
or to refrain from dealing or contracting to deal with competing 
manufacturers, is prohibited as an unfair method of competition. 

Sec. 7. Defamation of Comyetitiors. — The defamation or dis- 
paragement of competing manufacturers by falsely imputing to them 
dishonorable conduct, inability to perform contracts or to make de- 
liveries, questionable credit standing, or by other false reports having 



297 

the tendency to mislead or deceive customers or prospective cus- 
tomers, is prohibited as an unfair method of competition. 

Article X — Administration 

To further elTectuate the policies of the National Industrial 
Recovery Act, the Executive Committee is set up to cooperate with 
the President as a planning and fair practice agency for the Industry. 
The President in his discretion may appoint not to exceed three non- 
voting representatives to serve with the Executive Committee in the 
administration of this Code. Such agency may from time to time 
present to the President recommendations based on conditions in 
the industry as they may develop, wdiich will tend to efl'octuate 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 rec{uirements by the President of 
such report of statistical information from persons engaged in the 
industry as may be required to secure the proper observance of the 
Code and the stabilization of employment. 

(2) Recommendations for the making of requirements by the 
President as to practices by persons engaged in the Industry as to 
methods and conditions of trading, the naming and reporting of 
prices which might be appropriate to avoid discrimination to prevent 
and eliminate unfair and destructive competitive prices and practices. 

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

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

To further effectuate the policies of the Industrial Recovery Act, 
the Executive Committee shall hold itself in readiness to assist and 
keep the Administrator fully advised and to meet with the Adminis- 
trator's representative from time to time as requested, to consider 
and study any suggestions or projDosals presented upon behalf of 
the Administrator or any member of the Industry regarding the 
operation, observance, or administration of this Code. 

In addition to information required to be submitted to the Execu- 
tive Committee, there shall be furnished to government agencies 
such statistical information as the ^Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the National Indus- 
trial Recovery Act. 

Article XI — Reports 

Section 1. Reports on Shipments. — Each manufacturer shall re- 
port his shipments monthly to the American Bureau of Metal Statis- 
tics, or to such other organization or person as may be designated by 
the Copper and Brass Mill Products Association, in the form pro- 
vided for the purpose. 

Sec. 2. Reports on J oh Contracts. — Each manufacturer shall report 
to the Executive Committee all contracts written for merchandise 
products, such as pipe and tube, extruded architectural shapes, sheet, 
roll, and strip copper for buildings, giving quantities, amounts, and 
the account within three days after the receipt of the contract by 
such manufacturer. 



298 

Sec. 3. Reports of Defaults and Cancellations. — Each manufacturer 
shall report to the Executive Committee all defaults on contracts or 
cancellations thereof, giving the attending circumstances and the 
action actually taken by such manufacturer with respect to such 
defaults and/or cancellations. 

Sec. 4. The Secretary or other officer designated by the Executive 
Committee shall receive the reports called for by Sections 2 and 3 of 
this Article XI. 

Sec. 5. Reports. — Every manufacturer shall furnish any special or 
general reports requested by the Administrator. 

Article XII — Modification and Supplements 

Such of the provisions of this Code as are not required to be in- 
cluded therein by the National Industrial Eecovery 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 may be submitted for the 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. Pursuant to 
subsection (b) of Section 10 of Title I 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 said 
Title. 

Article XIII — Monopolistic Practices 

It is expressly understood that no provision in this Code shall be 
interpreted in such a way as to condone or permit conduct or opera- 
tions tending to promote monopolies or to eliminate or oppress small 
enterprises, or to discriminate against them. 

Article XIV — Effective Date 

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

Article XV 

Any action taken by the Executive Committee or by the Copper 
and Brass Mill Products Association or any group within the Indus- 
try for the purpose of making effective the provisions of this Code 
may, in the discretion of the Executive Committee, be submitted to 
the Administrator for approval, and shall in any case be subject to 
the disapproval of the Administrator. 

Article XVI 

No inequitable restrictions shall be imposed upon membership in 
the Copper and Brass Mill Products Association or its successors. 

Approved Code No. 81. 
Registry No. 1201/1/01. 

o 



Approved Code No. 82 
CODE OF FAIR COMPETITION 

FOR THE 

STEEL CASTING INDUSTRY 

As Approved on November 2, 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 Steel Casting 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 
tho 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, 

Novemher ^, 1933. 

29919 296-181 34 (299) 



November 1, 1933. 
The President, 

The White House. 
Sir: This is a report on the proposed Code of Fair Competition 
for the Steel Casting Industry in the United States and on the hearing 
conducted thereon in Washington, D.C., on Thursday, September 7, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. 

provisions of the code as to wages and hours 

The Code provides for a 40-hour week averaged over an eight-week 
period with the proviso that no employee may be employed more than 
48 hours or more than six days in any one week. 

Office employees are limited to 40 hours of work per week. 

The rates of pay vary from 40^ per hour in the northern wage 
districts to 25)^ per hour in the southern wage districts. 

The hours and wages closely follow those provided in the Code for 
the Steel Industry. 

Most of the plants in this industry are in the territory contiguous 
with or adjacent to the steel producing areas. This Industry em- 
ploys the same general character of labor and wage rates and hours of 
labor are definitely affected by the labor conditions prevailing in the 
Steel Industry. 

No one under 16 years of age may be employed and no one under 
18 years of age in any hazardous occupation. 

Office and clerical employees are to receive a minimum of $15.00 
per week except that office boys and girls may be paid 80% of this 
minimum. 

Old and partially disabled employees not engaged in productive 
labor may be paid 80% of the minimum rates provided but are 
limited to 3% of the total number of employees. 

Equitable adjustments in wage rates over the minimum are provided 
for. 

general statement and economic effect of the code 

The Steel Casting Industry in the United States represents persons, 
firms, and corporations engaged in the production and sale of steel 
castings. It embraces two main groups of castings, which are com- 
monly known in the trade as "miscellaneous castings" and "special- 
ties", the first group comprising those castings produced to the order 
of buyers from buyers' designs and specifications, and the latter 
group produced from designs and patterns belonging to the producer 
and sold as finished or semi-finished devices, or parts thereof. 

The Steel Founders' Society, which presented the Code, represents 
about 80% of the Industry and about three fourths of the number of 
companies actively engaged in it. 

The investment in the Industry is approximately $240,000,000 and 
the number of wage earners in normal times about 43,000 persons, 
with an estimated pay roll of about $85,000,000. 

The Industry considers 1926 as a normal year, and in that year 
operated at 68% of capacitj^; in 1931 production dropped to 25% 
and in 1932 to only 10% of capacity. At the present time production 
has increased to about 20%. It is estimated that in working under 
the provisions of this Code at three fourths of the 1926 rate of produc- 
tion which is 51% of capacity, the Industry will absorb all the workers 

(300) 



301 

then employed in the industry. Should production reach the normal 
figure of 68% of capacity on the basis of a 40-hour week, it is estimated 
that the industry would require an average total of 54,209 employees, 
or 13,000 more than were required in 1926. 

While the Code has been in process of development the Industry 
has been endeavoring to adjust hours and wages to approximate the 
code requirements, and reports for July and August show that there 
has been an increase in rates of pay of 8.8% since July 1st, amounting 
to approximately $46,000 a week, or at the rate of $2,392,000 a year. 
It is estimated that a further increase when the code requirements are 
fully met will result in a total increase of at least 16%%, or an annual 
increase of more than $5,000,000 a year. Approximately 3,000 em- 
ployees have been added to the pay rolls since Julylst, as a result of 
the reduction in hours from 50 to 40, and on the basis of the present 
level of operation in the industry, another 3,000 are estimated to be 
necessary to fully meet requirements of the code. 

Pertinent data on employment, wages, and hours, as submitted by 
the Industry, may be summarized as follows: 



Number 

of 
employees 



Minimum 

rates of 

pay 



Minimum 

weekly 

work 

hours 



Maximum 

weekly 

work 

hours 



1926 

1929... 

January 1933 

September 1933 

Under Code at 1926 level of operations 



43, 023 
51,000 
22, 000 
25, 150 
54, 209 



49.0 
50.0 
30.0 
30.0 
30.0 



84.0 
84.0 
84.0 
47.0 
40.0 



All figures estimated in accordance with best information available. 

Note.— Minimum rates of pay and maximum and minimum weekly work hours are average maxima and 
minima. Minimum rates of pay in the South, for example, would be considerably less than figures shown— 
15(i per hour in January 1933, and 250 September 1933. 

The Board of Directors of the Steel Founders' Society is to be the 
general agency of administration of the Code and is to make such 
rules and regulations, subject to the^ approval of the Administration, 
as may be necessary for its administration. 

I believe that the Code is fair to Industry, and to Labor, and in 
accordance with the intent and purpose of the National Industrial 
Recovery Act. 

I find that — 

(a) The Code as recommended complies in all respects with the 
pertinent 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 appHcant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Steel Casting Industry ; and that 

(c) The Code as recommended is not designed to promote monopo- 
lies or to eliminate or oppress small enterprises and will not operate 
to discriminate against them, and \vill tend to effectuate the policy of 
Title I of the National Industrial Recovery Act. 

Accordingly, I hereby recommend the approval of this proposed 
Code of Fair Competition for the Steel Casting Industry. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

STEEL CASTING INDUSTRY 

Article I — Purpose 

To eflFectuate the policies of Title I of the National Industrial 
Recovery Act, the follo\nng provisions are submitted as a Code of 
Fair Competition for the Steel Casting Industry and upon approval 
by the President shall be the standard of fair competition for this 
Industry. 

Article II — Definitions 

The terms used in this Code and in any schedule attached hereto 
are defined as follows: 

Section 1. The term "the United States" means and includes aU 
of the territory subject to the jurisdiction of the United States of 
America. 

Sec. 2. The term "the President" means the President of the 
United States of America. 

Sec. 3. The term "the Industry" means and includes the business 
of producing and/or selling steel castings in the United States, except 
as produced and/or sold as a part of the products, including finished 
and semi-finished parts thereof, of an owning or an affiliated company 
but not sold in the open market as castings in competition with 
similar castings produced by other members of the Industry; provided 
however, that the Industry, as herein defined, does not include the 
business of producing and/or selling castings containing in excess 
of sixteen (16) percent of nickel and/or cnromium, and provided 
further that Sections 1 and 5 of Article V, and Articles VII and XIII 
of this Code shall not be applicable with respect to the products of 
the Industry sold for use outside of the United States. The Industry 
embraces two main groups of castings which are commonly known in 
the trade as "Miscellaneous Castings" and "Specialties." 

Sec. 4. The term "aflSliated company" means a company whose 
relations to another company are such that either one has, directly 
or indirectly, a substantial stock interest in the other, or that a third 
company has, directly or indirectly, a substantial stock interest in 
both; provided, however, that in the event of a dispute or disagree- 
ment regarding the term "affihated company" as used in this Code, 
such aispute or disagreement shall be referred for decision to an 
arbitration committee, elected or appointed by a fair method of 
selection. Should any member of the Industry desire to appeal 
from the decision of said arbitration committee, such member may 
appeal direct to the Administrator, whose decision in the matter shall 
be final. 

Sec. 5. The term "Miscellaneous Castings" means that group of 
steel castings commonly known in the trade under that name and 
produced by foundries to the order of the buyers from the buyers' 
designs, patterns, and specifications, such castings usually being sold 
in the rough. 

(302) 



303 

Sec. 6. The term "Specialties" means that group of cast steel 
products commonly known in the trade under that name and pri- 
marily designed and engineered by the foundry companies produc'ng 
them, produced from patterns and/or other production equipment 
belonging to the producer, and sold as finished or semi-finished 
devices or parts thereof. 

Sec. 7. The term "a member of the Industry" means and includes 
any person, firm, association, corporation, organization or other unit, 
of any kind or descripf^'on, and without limitation to the foregoing, 
engaged in business in the industry. 

Sec. 8. The term "the Society" means Steel Founders' Society of 
America. 

Sec. 9. The term "the Board of Directors" means the Board of 
Directors of the Society. 

Sec. 10. The term "the National Industrial Recovery Act" means 
the National Industrial Recovery Act as approved by the President, 
June 16, 1933. 

Sec. 11. The term "Administrator" means the Administrator 
appointed by the President to administer Title I of the National 
Industrial Recovery Act, and at the time in office. 

Sec. 12. The term "Administration" means the agency established 
pursuant to the provisions of Section 2 of Title I of the National 
Industrial Recovery Act. 

Sec. 13. The term "employee" as used herein includes anyone 
engaged in the Industry in any capacity, receiving compensation 
for his services, irrespective of the method of payment of such 
compensation. 

Article III — Scope 

Section 1. Articles I to XII inclusive of this Code shall apply to 
the Industry; in view, however, of the divergent producing and selling 
methods applying to the two main groups of castings, namely, Mis- 
cellaneous Castings and Specialties, separate provisions are set forth 
covering the Unfair Trade Practices of each group. 

Sec. 2. This Code shall be applicable with respect to every member 
of the Industry, regardless of whether any such rnember of the 
Industry is also engaged in any other industry; provided, however, 
that this Code shall apply to and affect only that part of the business 
of each such member as relates to the Industry. 

Article IV — Participation 

Section 1. Any member of the Industry may become a "party to 
the agreement" by filing with the Society a letter in the form annexed 
hereto as Schedule A, in which such party to the agreement is referred 
to in the singular as "a participant under said code" and by under- 
taking to bear its fair share of the expenses and responsibilities in 
connection with the preparation and administration of this Code, 
either as a member of the Society or by undertaking to pay to the 
Society the equivalent of the dues it would pay as a member of the 
Society. The signing of such a letter as is referred to herein shall not 
constitute the signer a partner of any other signer or signers. Any 
member of the Industry may also become a member of the Society. 



304 

Sec. 2. Any member of the Industry subject to the jurisdiction of 
this Code, and receiving the benefits of the Code and/or the benefits 
of the activities of the Society, shall pay to the Society his equitable 
proportionate share of the costs and expenses incurred in the prep- 
aration and/or administration of this Code by the Society. 

Article V — Administration 

Section 1. Membership in the Society shall be open to any mem- 
ber of the Industry on an equitable basis and upon terms of equality 
with all other members. The Board of Directors of the Society shall 
be the general agency for the administration of this Code and shall — 

(a) For the purpose of keeping the President informed as to the 
observance or nonobservance of this Code and as to whether the 
Industry is taking appropriate steps to effectuate in all respects 
the declared policy of the National Industrial Recovery Act, require 
from any member of the Industry, in the event of complaint, duly 
certified reports in such form as may hereafter be required by the 
Administrator ; 

(b) Upon complaint of interested parties, make such inquiry and 
investigation into the operation of this Code as may be necessary, 
unless a supervisory agency has been appointed as provided in Sec- 
tion 1 of Article VII for the subdivision or product classification of 
the Industry to which said complaint relates; and 

(c) Make such rules and regulations subject to the approval of the 
Administration as may be necessary for the administration and 
enforcement of this Code. 

Sec. 2. All information furnished to the Board of Directors by any 
member of the Industry, pursuant to the administration of this Code 
shall be deemed confidential and shall not be disclosed to any mem- 
ber of the Industry in other than composite form, unless disclosure 
in detail shall be necessary in the administration of this Code and/or 
requested by the Administrator. 

Sec. 3. In addition to information required to be submitted to the 
Board of Directors, there shall be furnished to government agencies 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section (3) (a) of the National 
Industrial Recover}^ Act. 

Sec. 4. Any action taken by the Board of Directors or other group 
within the Industry, for the purpose of making effective the provisions 
of this Code, may be submitted to the Administrator for approval, 
and shall in any case be subject to the disapproval of the Admin- 
istrator. 

Sec. 5. It is recognized that questions of public interest are or may 
be involved in the administration of this Code. Accordingly, not 
more than three representatives of the Administration, of which the 
Administrator may be one, appointed by the Administrator, shall be 
given full opportunity at such times as shall be reasonably convenient 
to discuss with the Board of Directors or any committees thereof any 
matters relating to the administration of the Code and to attend meet- 
ings of the Board at which action on any such matters shall be under- 
taken and to make recommendations as to methods or measures of 
administering the Code, but shall not have voting powers. Due 
notice of all such meetings of the Board of Directors shall be given to 



805 

such representatives of the Administration. 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 shall be afforded by the Board of Directors complete access at 
all tmies to all records, statistical material, or other information fur- 
nished 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 commit- 
tees appointed by it, shall give due consideration to all rec[uests, sug- 
gestions, or recommendations made by such representatives of the 
Administration and render every possible assistance to such repre- 
sentatiyes in obtaining full information concerning the operation and 
administration of the Code, to the end that the President may be 
fully advised regarding such operation and administration through 
reports that may be made to him from time to time by such repre- 
sentatives and to the end that the President may be assured that the 
Code and the administration thereof do not promote or permit 
monopolies or monopolistic practices, or eliminate or oppress small 
enterprises, or operate to discriminate against them and do provide 
adequate protection of consumers, competitors, employees, and 
others concerned and that they are in furtherance of the public inter- 
est and operate to effectuate the purposes of Title I of the National 
Industrial Recovery Act. 

Article VI — Hours of Labor, Rates of Pay, and Other 
Conditions 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: 

(a) That employees shall have the right to organize and bargain 
collectively tlirough 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 purposes 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. 

Sec. 2. (a) The basic processes in the Industry are of a continuous 
character and cannot be changed in tliis 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 employed in directing or 
supervisory capacities and in technical or other liighly skilled work, 
and members of their respective staffs, individually receiving pa}- at 
the rate of $35.00 or more per week, none of the members of the Indus- 
try shall cause or permit any employee in the Industry to be employed 
for an average of more than forty (40) hours per week in any eight (8) 

29919—34 2 



306 

weeks' period, such periods to be computed from the effective date 
of tliis Code, or to be employed for more than forty-eight (48) hours 
or more than six (6) days in any one week. 

(b) The Industry recognizes the desirabihty and accepts the prin- 
ciple of the eight (8) hour woridng day for labor and insofar as it 
reasonably can, the Industry will endeavor to employ its labor on 
that basis. 

(c) After the date of the employment by any member of the Indus- 
try of any employee, such member shall not knowingly permit such 
employee who shall also have been employed by one or more other 
employers, to be employed by such member such number of hours 
as would result in a violation of the Code had all such employment 
been by such member. 

(d) !NIembers of the Industry shall not employ accounting, clerical 
and office employees, except travehng representatives and executive, 
administrative, and supervisory employees, and their respective 
personal staffs and assistants on a schedule in excess of forty (40) 
hours per week. 

Sec. 3. None of the members of the Industry shall employ in the 
Industry any p^^'soi under sixteen (16) years of a^e, and no one under 
eighteen (18) years of age shall be employed in hazardous work; 
provided, however, that where a State Law specifies a higher minimum 
age, no person below the age so specified by such Law shall be so 
employed \vithin that State. 

Sec. 4. For the purpose of this Code, the wage districts described 
in Schedule B, annexed hereto, have been established. 

Sec. 5. (a) Until changed by amendment of the Code as herein- 
after in Article VIII provided, the minimum rates of pay per hour 
which shall be paid by members of the Industry for common labor in 
the Industry in the respective wage districts described in such Sched- 
ule B shall be the rates set forth in Schedule C, annexed hereto. 
None of the members of the Industr}^ shall pay common laborers in 
its employ m the Industry in any such district any rate of pay less 
than the rate specified for such district in such Schedule C. 

(b) The rates of pay for classes of labor heretofore paid at a rate in 
excess of the rate heretofore paid for common labor shall be increased 
at least to the extent necessary to maintain, in relation to the minimum 
rates for common labor under the Code, the percentage relariona 
heretofore existing (as determined by the experience of the several 
wage districts with the approval of the Board of Directors) between 
the rates of pay for such classes of labor and the rates of pay for com- 
mon labor. The foregoing provision shall not be so construed as to 
require any member of the Industry 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 will result in a rate of pay per hour wliich 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 Industry which shall have increased its 
rates of pay per hour in accordance with such provision. 

(c) In the case of employees performing work for which they are 
paid per piece of work performed, the minimum rate of pay which 
each member of the Industry shall pay for such work shall produce at 
least the minimum rate of pay per hour provided in this Code for 
common labor at such plant. 



307 

(d) The minimum wage that shall be paid by any employer to 
accounting, clerical, and office employees, except those employed on a 
commission basis, shall be at the rati; of fifteen dollars ($15.00) per 
week; provided, however, that ofHce boys or girls may be paid iiot 
less than eighty (80) percent of such minimum wage, and provided 
further that where a State Law specifies a higher minimum wage, no 
employer shall pay less than the minimum wage required by such 
State Law. 

Sec. 6. The provisions as to minimum rates of pay shall not affect 
those employees who, by reason of old age or infirmities, are not 
engaged in productive labor, except that the rates paid such em- 
ployees shall not be less than eighty (80) percent of said minimum 
rates and the number of such employees employed by each member 
of the Industry shall not be more than three (3) percent of the total 
number of its employees. 

Article VII — General Provisions 

Section 1. Members of the Industry having a common interest 
and conuaon problems may group themselves for administrative 
purposes in various subdivisions or product classifications, subject to 
the approval of the Board of Directors. The majority of members 
in each subdivision or product classification may appoint its agency, 
with supervisory and/or administrative powers, subject to the Board 
of Directors. In the event that no such agency is so appointed, then 
the Board of Directors ma};- appoint such agency. If formal com- 
plaint is made to the Board of Directors that the provisions of this 
Code have been violated by any member or members of the Industry, 
the agency for the subdivision or product classification to which tlie 
complaint refers, shall institute such inquiry as may be necessary to 
develop the facts. 

Sec. 2. If the agency of any subdivision or product classification, 
formed in accordance with the provisions of Section 1 of this Article, 
so decides, each member of the Industry manufacturing products 
falling within such subdivision or product classification shall, within 
ten (10) days after notice of such determination, file with the agency 
a price list prepared by such member of the Industry, showing its 
current prices and the agency shall immediately send copies thereof 
to all members of the Industry engaged in the manufacture of such 
specified product. Revised price lists may be filed from time to 
time thereafter with the agency by any such member of the Industry 
to become effective upon the date specified therein, but such revised 
price list shall be filed with the agency at least ten (10) days in ad- 
vance of the effective date, unless the agency shall authorize a shorter 
period. Copies of such revised price lists with notice of the effective 
date specified shall be immediately sent to all members of the Indus- 
try manufacturing such product who thereupon may file, if they so 
desire, revisions of their price lists specifying the effective date 
which shall be on or after the date when the revised price list first 
filed shall go into effect. 

Sec. 3. If the agency of any subdivision or product classification so 
decides, no member of the Industry within such subdivision or product 
classification shall sell directly or indirectly by any means whatsoever 
any product of the Industry included within a subdivision or product 



308 

classification for which the agency shall have given notice requiring the 
filing of price lists, at a price less than the price shown for such product 
in the fist filed by such member. 

Sec. 4. The Board of Directors shall make a careful study of the 
question of limitation of Steel Foundry Melting Capacity and shall 
submit to the Administrator for his approval such plan or plans as are 
deemed necessary, and which will further effectuate the policies of the 
National Industrial Recovery Act. 

Article VIII — Amendments 

Amendments of such of the provisions of this Code as are not 
required to be included therein by the National Industrial Recovery 
Act may, if approved by the agency of the subdivision or product 
classification concerned, if any, and by the Board of Directors, be 
submitted to the President, and, if approved by the President, shall 
become effective ten (10) days thereafter. 

Article IX — Cancellation or Modification 

The members of the Industry recognize that, pursuant to subsection 
(b) of Section 10 of the National Industrial Recovery Act, the Presi- 
dent may from time to time cancel or modify any order, approval, 
license, rule or regulation issued under Title I of said Act, with respect 
to tliis Code. 

Article X — Violations 

Violation of any of the provisions of this Code, or amendments 
thereto, is an unfair trade practice and shall be subject to the penalties 
provided in the National Industrial Recovery Act. 

Article XI — Rights of the Members of the Industry 

By presenting this Code the members of the Industry do not thereby 
consent to any modification thereof and they reserve the right to 
object to any such modification without being given an .opportunity 
to be heard. 

Article XII — Duration 

This Code shall become efiective on the first Monday after the 
fourth day following the date on wliich tliis Code shall have been 
approved by the President, and shall continue in effect until sixty (60) 
days subsequent to June 16, 1935, or the earliest date prior thereto 
on which the President shall, by proclamation, or the Congress shall, 
by Joint Resolution, declare that the emergency recognized by 
Title I of the National Industrial Recovery Act has ended. 

Article XIII — Unfair Trade Practices 

Section 1. With respect to the production and/or sale of Miscel- 
laneous Castings, the Unfair Trade Practices which are condemned 
are set forth in Schedule D, annexed hereto. Such Unfair Trade 
Practices shall have no application to that part of the Industry 
engaged in the production and/or sale of Specialties. 



309 

Sec. 2. With respect to the production and/or sale of Specialties, 
the Unfair Trade Practices wliich are condemned are set forth in 
Schedide E, annexed hereto. Such Unfair Trade Practices shall have 
no application to that part of the Industry engaged in the production 
and/or sale of Miscellaneous Castings. 

Sec. 3. Indulgence, in any of the Unfair Trade Practices, or any 
amendments thereof, or any additions thereto, shall be deemed to 
be unfair methods of competition, and using or employing any of 
such unfair methods of competition shall be deemed a violation of 
the Code, and any member of the Industry which shall directly or 
indirectly, through any officer, employee, agent, or representative, 
use or employ any of such unfair methods of competition shaU be 
guilty of a violation of the Code. 

Approved Code No. 82. 
Registry No. 1106-1-01. 



SCHEDULE A 

Form of Letter Giving Assent to Code 

October — , 1933. 
Steel Founders' Society of America, 

9SS Graybar Building, 1^20 Lexington Avenue, New York, N. Y. 
Gentlemen: The undersigned, desiring to participate under the Code of Fair 
Competition of the Steel Casting Industry, hereby assents to all of the provisions 
of said Code, and to such changes in the same as may be made by the Board of 
Directors of the Society in order to meet the requirements of the National 
Recover}^ Administration. Effective on the date on which the Code is approved 
by the President of the United States of America as therein provided, or as of 
the date on which this letter is delivered, if delivery is made after such date of 
approval by the President, the undersigned, by the signing and delivery of this 
letter, becomes a participant under said Code, as provided in Article IV of the 
Code, and hereby agrees with every person, firm, and corporation who shall then 
be or thereafter become a participant under said Code, that this Code shall 
constitute a valid and binding contract between the undersigned and all such 
other participants. 

Very truly yours, 



(Name of Corporation') 

Bv 



CSignature of Authorized Officer) 
(Title of Authorized Officer) 



(Address) 

(310) 



SCHEDULE B 
Dbbcription of Waqb Districts 

1-A. Eastern District — All of Division No. 1. 

Note. — Division No. 1 constitutes Federal Reserve District No. 1 and 
No. 3 (except tliat part of Pennsylvania west of a line drawn north and 
south through Altoona, Pennsylvania) and No. 5 (except West Virginia 
and North and South Carolina) and New York State east of a line drawn 
north and south through the most westerly point of Schenectady, New 
York. 
2-A. Buffalo District— AU of Division No. 2. 

Note. — Division No. 2 constitutes Federal Reserve District No. 2 (except 
that portion included in Division No. 1) and Erie, Pennsylvania. 
3-A. Southern District— All of Division No. 3. 

Note. — Division No. 3 constitutes Federal Reserve District No. 6 and 
No. 11 (except southeastern Arizona, southern New Mexico, and Texas 
west of a line drawn north and south through Haymond, Texas) and 
aU of North and South Carolina, Tennessee, Mississippi, and Alabama 
(except Jefferson County). 
3-B. Birmingham District — County of Jefferson in the State of Alabama. 
4-A. Johnstown District — Cambria County, Pennsylvania. 
4-B. Pittsburgh-Wheeling District — All of Pennsylvania in Division No. 4 
(except Cambria County) and the Counties of Hancock, Brooke, Ohio and 
Marshall in West Virginia. 

Note. — Division No. 4 constitutes Federal Reserve District No. 4 (except 
Erie, Pa., eastern Kentucky and Ohio) and West Virginia, and that 
part of Pennsylvania not included in Division No. 1. 
4-C. West Virginia District — All of West Virginia, except Hancock, Brooke, 

Ohio, and Marshall Counties. 
5-A. North Ohio District — All of Division No. 5 north of a line drawn east 
and west through Ashland, Ohio (except Erie County) and Columbiana 
County. 

Note. — Division No. 5 constitutes Federal Reserve District No. 4 (except 
Pennsylvania) . 
5-B. South Ohio District — AU of Division No. 5 south of a line drawn east and 
west through Ashland, Ohio (except Columbiana County) and Erie County 
and includes Canton, Massillon, Alliance, Lima, Bucyrus, Marion, Sandusky, 
and East Liverpool. 
6-A. Chicago District — Chicago switching district, the Counties of Lake and 
DuPage in Illinois, and Lake County in Indiana, and the Counties of Kenosha, 
Racine, and Milwaukee in Wisconsin. 
6-B. Indiana-IUinois District — AU of Indiana except Lake County; all of lUinois 
in Division No. 6 (except Lake County and Chicago switching district), all 
of Minnesota and Iowa and Wisconsin (except Kenosha, Racme, and Mil- 
waukee Counties). 

Note. — Division No. 6 constitutes Federal Reserve Districts No. 7 and No. 9. 

6-C. Detroit District — Counties of Monroe, Lenawee, Jackson, Wayne, Oakland, 

Macomb, and Washtenaw, Michigan. 
6-D. Michigan District — All of the State of Michigan except Counties embraced 

in District 6-C. 
7-A. Colorado District — State of Colorado. 
7-B. St. Louis District — St. Louis and St. Louis County, Missouri, Madison and 

St. Clair Counties, Illinois. 
7-C. Midcontinent District — AU of Division No. 7, not included in Districts 

7-A and 7-B. 

Note. — Division No. 7 constitutes Federal Reserve District No. 8 (except 
Tennessee, Mississippi, and Arkansas) and No. 10. 

8-A. Seattle District — States of Washington, Oregon, and Nevada. 

(311) 



312 

8-B. San Francisco District — All of California north of a line drawn east and 

west through Fresno, California. 
8-C. Los Angeles District — All of California not included in District No. 8-B, 

and all of the State of Arizona. 
8-D. Utah District— All of the State of Utah. 
8-E. El Paso District — All of Division No. 8 not Included in Districts 8-A, 

8-B, 8-C, and 8-D. 

Note. — Division No. 8 constitutes Federal Reserve District No. 12 and 
that part of Federal Reserve District No. 11 not included in Division No. 8. 



SCHEDULE C 

Minimum Rateb of Pat fok Common Labob 

Minimum Rates, 

Common Labor — 

Dittriet Cents per Hour 

1-A. Eastern District 35 

2-A. Buffalo District 38 

3-A. Southern District 25 

3-B. Birmingham District 27 

4-A. Johnstown District 37 

4-B. Pittsburgh-WheeUn^ District 40 

4-C. West Virginia District 37 

5-A. North Ohio District 40 

6-B. South Ohio District 37 

6-A. Chicago District 40 

6-B. Indiana-Illinois District 37 

6-C. Detroit District 40 

6-D. Michigan District 37 

7-A. Colorado District 40 

7-B. St. Louis District 37 

7-C. Mid-continent District 35 

8-A. Seattle District 38 

8-B. San Francisco District 37 

8-C. Los Angeles District 35 

8-D. Utah District 39 

8-E. El Paso District... _.. 25 

(313) 



SCHEDULE D 

List op Unfair Trade Practices Relating to Miscellaneous Castings 

This Schedule relates solely to the production and/or sale of Miscellaneous 
Castings and has no application to Specialties. 

For all purposes of this Code, it shall be an unfair trade practice for any member 
engaged in the Miscellaneous Castings branch of the Industry to do any of the 
following acts: 

Section 1. Make or promise to any purchaser or prospective purchaser of any 
product, or to any officer, employee, agent, or representative of any such pur- 
chaser or prospective purchaser any bribe, commission or split-commission, or 
other payment or remuneration, directly or indirectly. 

Sec. 2. Extend to any purchasers special privileges or concessions, including 
allowances for machining and/or welding (except where explicitly agreed upon to 
repair specific imperfect castings), pattern alterations, or other services not ex- 
tended by the Industry to all buyers under like terms and conditions. 

Sec. 3. Purchase from customers goods and/or services at prices higher than 
the market for such goods and/or services, for the purpose of influencing or induc- 
ing the purchase of castings. 

Sec. 4. Absorb all or any part of the machining cost of castings sold as ma- 
chined castings. 

Sec. 5. Enter into quantity contracts with buyers without obligation on their 
part to take delivery of the quantities specified in the contract or on the quotation, 
for the purpose of giving unwarranted prices. 

Sec. 6. State in the invoice of any product sold by a member of the Industry 
as the date thereof a date later than the date of shipment of such product, or 
include in any invoice any product shipped on a date earlier than the date of 
such invoice, for the purpose of furnishing such product at prices lower than 
would othermse prevail or for the purpose of extending the customer's time of 
payment. 

Sec. 7. Allow terms of payment more favorable to the customer than net thirty 
days from date of shipment, or a discount of one half of one per cent (}i%), 
provided payment is made within ten (10) days from date of shipment. 

(314) 



SCHEDULE E 
List of Unfair Trade Practices Relating to Specialtie 

This Schedule relates solely to the production and/or sale of Specialties and 
has no application to Miscellaneous Castings. 

For aU purposes of this Code it shall be an unfair trade practice for any member 
engaged in the Specialties branch of the Industry to do any of the following acts: 

Section 1. To make terms of payment in connection with sale for domestic 
use more favorable to the customer than thirty (30) days net cash from date of 
invoice. 

Sec. 2. To make for the purpose of influencing a purchase any promise as to 
delivery or other matters which obviously is impossible of performance. 

Sec. 3. To employ any unfair trade practices which may be established for 
any product classification by the administrative agency for such classification 
appointed in accordance with Article VII of this Code and approved by the 
President. 

(315) 

o 



Approved Code No. 83 

CODE OF FAIR COMPETITION 

FOR THE 

SOAP AND GLYCERINE MANUFACTURING 
INDUSTRY 

As Approved on November 2, 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 Soap and Glycerine Manufacturing Indus- 
try, 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 perti- 
nent 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. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnsox, 

Administrator. 

The White House, 

November 2, 1933. 

29941 296-182 34 (3 17 J 



October 13, 1933. 
The President. 

The White House. 
Sir : This is a report of the hearing- on the Code of Fair Competi- 
tion for the Soap and Glycerine Manufaetnring Industry conducted 
in Washington on the 5th of October 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

Provisions of this Code as to Hours and Wages 
Article III — Hours 

A. No employee shall work or be permitted to work in excess of an 
average of 40 hours per week in any six months' period, except as 
follows : 

1. Technical or professional employees such as chemists, law3^ers, 
doctors, nurses, etc., engaged in their technical or professional 
capacity but not including skilled operating personnel ; employees in 
a managerial, supervisory, or executive capacity who receive $35 or 
more per week; supervisors or highly skilled workers in continuous 
processes where restriction of hours would unavoidably reduce 
production, and who receive $35 or more per week; employees on 
"emergency maintenance and repair work; watchmen; and outside 
salesmen. 

2. Immediate assistants to employees in a managerial, supervisory 
or executive capacity, which assistants receive less than $35 per week, 
and supervisors or highly skilled workers in continuous processes 
where restrictions of hours would unavoidably reduce production and 
who receive less than $35 per week, who shall not work or be permitted 
to work in excess of 48 hours per week. 

3. Accounting, clerical, office, store, shipping, service, or inside 
sales employees, who shall not work or be permitted to work in 
excess of an average of 40 hours per week in any six months' period or 
in excess of 48 hours in any calendar week. 

4. Employees on automotive or horse-drawn passenger, express, 
delivery, or freight service, who shall not work or be permitted to work 
in excess of an average of 44 hours per week in any six months' 
period or in excess of 48 hours in any calendar week. 

5. Engineers, firemen, water tenders, and oilers, who shall not work 
or be permitted to work in excess of 48 hours a week. 

B. If any employee on an hourly rate of pay works in excess of 8 
hours in any 24-hour period, or in excess of 40 hours in any calendar 
week, the wage paid for excess hours shall not be less than one and 
one-third the regular hourly rate. 

C If any employee works for more than one employer, no such 
employer or employers shall knowingly permit such employee to work 
for a total number of hours in excess of the number of hours pre- 
scribed, and all employers in the industrv shall exercise due diligence 
to carry out the purpose of this section. 

(318) 



319 

Article IV — Wages 

A. No employee shall be paid less than 40 cents an hour, or in 
southern states less than 35 cents an hour, except as follows: 

1. Learners or apprentices in operations other than the light tasks 
of wrapping, packaging, and filling, and not exceeding 5 percent of the 
total number of employees in any establishment, during the first 60 
days of apprenticeship in the industry shall be paid not less than 90 
percent of the nunimum rates above prescribed. 

2. Employees engaged in the light tasks of wrapping, packaging, 
and filling shall be paid not less than 32^ cents an hour, or in southern 
states less than 30 cents an hour. Such employees during the first 6 
months of their employment shall be paid not less than 90 percent of 
the rate herein established, but in no case shall the number of these 
employees exceed 25 percent of the total number engaged in the light 
tasks of wrapping, packaging, and filling. 

3. Employees of the classes mentioned in subsections 3 and 4 of 
paragraph A of Article III shall be paid not less than — 

$15 per week in any city of over 500,000 population, or in the 

immediate trade area of such city. 
$14 per week in any other part of the United States. 

4. Messengers, junior clerks, or others doing a junior grade of 
office or clerical work shall be paid not less than $12 per week, but 
the number of such employees shall not exceed 5 percent of the total 
number of office employees in any establishment, 

B. Each employee on piecework shall be paid at a rate which will 
guarantee not less per hour than the hourly rate to which he is 
entitled under this Article. 

C. Based upon changes in minimum pay necessitated by the 
foregoing paragraphs of tliis Article, each employer shall in each 
establishment make fair and equitable readjustment of all pay 
schedules. 

D. There shall be no evasion of this Code by any member of the 
industry by reclassification of general types of occupations existing 
on June 15, 1933. 

Article V — Child Labor 

No person under 16 years of age shall be employed in tliis industry. 
Economic Effect of the Code 

Tliis Code covers a producing industry in which seasonal peaks 
largely have been eliminated so that average figures present an 
unusually accurate picture of conditions. Emplo^mient fell steadily 
from a high of 20,000 in 1919 to 13,500 in 1932 in the face of steady or 
even increasing volume of output. Obviously such a condition 
reflects a period of mechanization. Basic processes now appear to 
be largely macliine operations but there still remains a considerable 
quantity of light hand labor in wrapping and packaging, w^hich labor 
will be replaced but slowly by macliinery if labor rates for such work 
are not too high. Tliis situation warrants the differential for these 
operations contained in the Code, but I wish to call your attention 
to the fact that the minimum rates for such work established in the 
Code are not unusually low. 



320 

With the stability of employment existing in this Industry, to- 
gether with early adoption of the President's Reemployment Agree- 
ment by its members, total employment in July, 1933, was practi- 
cally that of 1929, although the average hours of work per week of 
86 percent of the employees was nearly 48. The reduction of hours 
as provided in the Code to an average of 40 per week with a penalty 
overtime rate for hours over eight per day or 40 per week should 
increase total employment to a figure better than that of 1929, which 
will mean a reversal of the shrinking trend of the previous thirteen 
years. 

I wish to point out that only about 1 percent of this industry is in 
the South. As the consequence, the total effect of the southern differ- 
ential contained in the Code is negligible, although its importance to 
the existing factories in the South is tremendous. Certainly the 
differential is not sufficient to make profitable a southern movement 
of units of the 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 applicant group imposes no inequitable restrictions on ad- 
mission to membership therein and is truly representative of the Soap 
and Glycerine 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, 

Hugh S. Johnson, 

Administrator^ 



CODE OF FAIR COMPETITION 

FOR THE 

SOAP AND GLYCERINE MANUFACTURING 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 Soap and Glycerine Manufacturing Industry, 
and upon approval by the President of the United States, shall be 
the standard of fair competition for this industry. 

ARTICLE II — -DEFINITIONS 

1. The term "Soap and Glycerine Manufacturing Industry" as 
used herein includes the manufacturing in Continental United States 
of household, industrial, and toilet soaps and soap products, and 
glycerine which is a by-product of the saponification industries, to- 
gether with such branches or subdivisions thereof as may from time 
to time, upon approval of the President of the United States or his 
authorized representative, be included under the provisions of this 
Code. This definition shall not, however, bar this Code and/or sup- 
plemental codes or agreements submitted by the Code Authority or 
other Agencies set up under this Code, from applying, when approved 
by the President or his authorized representative, to detergent, 
cleanser, or related industries; nor shall this definition bar the appli- 
cation of this Code and/or such supplemental codes or agreements 
from applying, when approved by the President or his authorized 
representative, in such territories outside of Continental United States 
as may be specifically covered in such approval. 

2. The term "employee " as used herein includes any person engaged 
in any phase of the industry in any capacity in the nature of employee 
irrespective of the method of payment of his compensation. The 
term "employer" includes anyone by whom such an employee is so 
engaged. 

3. The term "member of the industry" as used herein includes any 
employer who shall be subject to this Code. The term "member of 
the Code" includes any member of the industry who shall expressly 
signify assent to this Code. 

4. The term "Association" as used herein means the Association 
of American Soap and Glycerine Producers, Inc., a membership cor- 
poration, not for profit, organized and existing under the laws of the 
State of Delaware. The term "Board of Directors " means the Board 
of Directors of said Association. 

5. The term "Southern States" as used herein includes Virginia, 
North Carolina, South Carolina, Tennessee, Arkansas, Georgia, 
Alabama, Mississippi, Louisiana, Texas, and Florida. 

6. The term "Act" as used herein means Title I of the National 
Industrial Recovery Act. The term "President" means the Presi- 
dent of the United States. 

(321) 



322 

7. The term ''effective date " as used herein means the first Monday 
ten days or more after this Code shall have been approved by the 
President. The term "six months' period" means the 26-weeks 
])eriod beginning with the effective date, and each 26-weeks period 
thereafter until the expiration of this Code or of the Act. 

8. Population for the purposes of this Code shall be determined by 
reference to the 1930 Federal Census. 

Article III — Hours 

A. No employee shall work or be permitted to work in excess of 
an average of 40 hours per week in any six months' period, except 
as follows: 

1. Technical or professional employees such as chemists, lawyers, 
doctors, nurses, etc., engaged in their technical or professional capac- 
ity but not including skilled operating personnel; employees in a 
managerial, supervisory, or executive capacity who receive $35 or 
more per week; supervisors or highly skilled workers in continuous 
processes where restriction of hours would unavoidably reduce pro- 
duction, and who receive $35 or more per week; employees on emer- 
gency maintenance and repair work; watchmen; and outside salesmen. 

2. Immediate assistants to employees in a managerial, supervisory, 
or executive capacity, which assistants receive less than $35 per week, 
and supervisors or highly skilled workers in continuous processes 
where restrictions of hours would unavoidably reduce production 
and who receive less than $35 per week, who shall not work or be 
permitted to work in excess of 48 hours per week. 

3. Accounting, clerical, office, store, shipping, service, or inside 
sales employees, who shall not work or be permitted to work in excess 
of an average of 40 hours per week in any six months' period or in 
excess of 48 hours in any calendar w^eek. 

4. Employees on automotive or horse-drawn passenger, express, 
delivery, or freight service, who shall not work or be permitted to 
work in excess of an average of 44 hours per week in any six months' 
period or in excess of 48 hours in any calendar week. 

5. Engineers, firemen, water tenders, and oilers, who shall not 
work or be permitted to work in excess of 48 hours a week. 

B. If any employee on an hourly rate of pay works in excess of 8 
hours in any 24-liour period, or in excess of 40 hours in any calendar 
week, the wage paid for excess hours shall not be less than one and 
one-third the regular hourly rate. 

C. If any employee works for more than one employer, no such 
employer or employers shall knowingly permit such employee to 
work for a total number of hours in excess of the number of hours 
prescribed, and all employers in the industry shall exercise due dili- 
gence to carry out the purpose of this section. 

Article IV — ^ Wages 

A. No employee shall be paid less than 40 cents an hour, or in 
southern states less than 35 cents an hour, except as follows: 

1. Learners or apprentices in operations other than the light tasks 
of wrapping, packaging and filling, and not exceeding 5 percent of the 
total number of employees in any establishment, during the first 
60 days of apprenticeship in the industry shall be paid not less than 
90 percent of the minimum rates above prescribed. 



323 

2. Employees engaged in the light tasks of wrapping, packaging and 
fdling shall be paid not less than 32*2 cents an liour, or in southern 
states less than 30 centa an hour. Such employees during the first 6 
months of their employment shall be paid not less than 90 percent 
of the rate herein established, but in no case shall the number of 
these employees exceed 25 percent of the total number engaged in 
the light tasks of wrapping, packaging, and filling. 

3. Employees of the classes mentioned in subsections 3 and 4 of 
paragraph A of Article III shall be paid not less than — 

$15 per week in any city of over 500,000 population, or in the 

immediate trade area of such city. 
$14 per week in any other part of the United States. 

4. Messengers, junior clerks, or others doing a junior grade of 
office or clerical work shall be })aid not less than $12 per week, but 
the number of such employees shall not exceed 5 percent of the total 
number of office employees in any establishment. 

B. Each employee on piecework shall be paid at a rate which will 
guarantee not less per hour than the hourly rate to which he is entitled 
under this Article. 

C. Based upon changes in minimum pay necessitated by the fore- 
going paragraphs of this Article, each employer shall in each estab- 
lishment make fair and equitable readjustment of all pay schedules. 

D. There shall be no evasion of thus Code by any member of the 
industry by reclassification of general types of occupations existing 
on June 15, 1933. 

Article V — Child Labor 
No person under 16 years of age shall be employed in this industry. 
Article VI — Administration 

A. To further effectuate the policies of the Act, the Board of 
Directors of the Association is set up as a Code Authority for the 
Soap and Glycerine Manufacturing Industry to cooperate with the 
President or his authorized representative in the administration of 
this Code. The President or his authorized representative may 
designate not to exceed three additional members, without vote, on 
such Code Authority. The Method of electing the Board of Directors 
of the Association shall be fair and equitable and subject to the 
approval of the President or his authorized representative. 

B. Any member of the industry is eligible for membership in the 
Code and in the Association, and there shall be no inequitable re- 
strictions on such membership. Members of the Code shall be 
entitled to share the benefits of the activities of the Code Authority 
and shall bear their proportionate shares of the expenses of mainte- 
nance of the Code Authority and its activities. 

C. Branches or subdivisions of the industry, including product 
divisions and/or geograpliical sections of the Association, may, when 
approved by the President or his authorized representative, establish 
their own Planning and Fair Practice Agencies wliich shall each be 
self-governing in respect to conditions or problems relating exclu- 
sively to said branches or subdivisions, providing that no action of 
any such Agency shall be inconsistent with the purposes and pro- 
visions of this Code or the Act; and provided further that no supple- 



324 

mental agreements, recommendations, or provisions shall be sub- 
mitted to the President by the Code Authority or any Planning and 
Fair Practice Agency mthout first having been approved by duly 
recorded vote of the branches or subdivisions concerned. The 
method of voting in each branch or subdivision shall be fair and 
equitable and subject to the approval of the President or his author- 
ized representative. Members of each branch or subdivision shall 
bear their proportionate shares of the expenses of maintenance of 
such branch or subdivision. Application for the establishment of 
any Planning and Fair Practice Agency, and any recommendations 
or reports by such Agency when established, shall be transmitted 
promptly to the President or liis authorized representative through 
the Code Authority. 

D. The Code Authority and Planning and Fair Practice Agencies 
established under this Code shall have the following duties and powers 
to the extent permitted by the Act and subject to review by the Presi- 
dent or his authorized representatives: 

1. The Code Authority shall administer this Code and shall main- 
tain all activities pertinent thereto, such as obtaining from employers,, 
reports requested by the President or his authorized representative in 
respect to wages, hours of labor, conditions of emploj^ment, and other 
matters pertinent to the purposes of the Act. Members of the indus- 
try shall furnish such reports and information promptly, and reports 
shall be notarized when required. The Code Authority shall desig- 
nate the agent or agents to whom reports shall be submitted, except 
that the Planning and Fair Practice Agencies established in accord- 
ance with this Code may designate the agent or agents to whom mem- 
bers of the branch or subdivision concerned shall submit their reports. 
The selection of agents and statistical methods used by them in col- 
lecting and compiling information shall be subject to review by the 
President or liis authorized representative. "NVhere reports are of a 
confidential nature they shall be confidential to the agent or agents des- 
ignated and to any designated Government agencies, and the informa- 
tion so collected shall be disseminated without individual identification 
and only in combination with other information of the same type, and 
shall be notarized when required. The confidential nature of the infor- 
mation requested from members of the industry shall be determined by 
the Code Authority, subject to review by the President or his author- 
ized representative, and all such rulings shall be general in applica- 
tion and shall not vary as between members of the same branch or 
subdivision of the industry. Any of the foregoing information shall 
be furnished by the Code Authority to such government agencies as 
the President or his authorized representative may designate to 
effectuate the purposes recited in Section 3 (a) of the Act. This 
article shall not relieve anj'^ member of the industry from continuing 
to make customary statistical reports to Government departments. 

2. The Code Authority or Planning and Fair Practice Agencies 
established under this Code shall study trade practices with a view to 
making recommendations to the President or his authorized repre- 
sentative. 

3. The Code Authority of Planning and Fair Practice Agencies 
established under this Code, shall make studies in an effort to deter- 
mine fair and uniform cost-finding procedures. If and when such 
cost-finding procedures are approved by the President or his author- 



325 

ized representative, then sales below cost as determined by such 
approved procedures shall be an unfair method of competition. 

Article VII — Collective Bargaining 

1. Employers shall comply with the following requirements of 
Section 7 (a) of the Act: 

"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 em- 
ployee and no one seeking employment shall be required as a condi- 
tion 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 VIII — General 

1. In accordance with Section 10 (b) of the Act, this Code and all 
the provisions thereof are expressly made 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 1 of said Act and spe- 
cifically, but without limitation, to the right of the President to can- 
cel or modify his approval of this Code or anv conditions imposed 
bv him upon his approval. 

2. 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 worldng conditions, than under this Code. 

3. If any employer subject to this Code is also an employer in any 
other industry, the provisions of this Code shall apply to and affect 
only that portion of his business which is subject to this Code. 

4. This Code shall cease to be effective upon the expiration of the 
Act or upon decision of the President, prior to such expiration, to 
cancel his approval of this Code. 

Approved Code No. 83. 
Registry No. 623/03. 

O 



Approved Code No. 84 
CODE OF FAIR COMPETITION 

FOR THE 

FABRICATED METAL PRODUCTS MANUFACTUR- 
ING AND METAL FINISHING AND METAL COAT- 
ING INDUSTRY 

As Approved on November 2, 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 
Recover}^ Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Fabricated Metal Products Manufacturing 
and Metal Finishing and Metal Coating 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 com- 
petition 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. Johxson, 

Administrator. 

The White House, 

November 2, 193d. 

29171° -296-87 34 (327) 



October 31, 1933. 
The President, 

The White House. 
Sir: This is a report on the proposed code of fair competition for 
the Fabricated Metal Products Manufacturing and ISIetal Finishing 
and ISIetal Coating Industr}-. and on the hearing conducted thereon 
in Washington, D.C., on October 5, 1933, in accordance with the 
proA"isions of the National Industrial Recovery Act. 

GENERAL STAIXMENT 

Before outlining in detail the provisions of this Code it seems ap- 
propriate to describe the industry and the problems involved, both for 
the industry and the Administration, in the development of this Code. 

In the broad field of metal working is included the manufacture of 
such articles as automobiles, electrical apparatus, machinery, farm 
implements, plumbing goods, ship building, etc. 

These large divisions of the metal working field have been well 
organized through trade associations or similar institutions; codes 
have been submitted and, in most cases, approved, and are now 
operative. 

Beyond these larger units of the Industry are the manufacturers 
of thousands of articles, a few of which are kitchen utensils, wire 
goods, pressed and stamped metal parts, hardware, small tools, 
metal boxes, wood screws, roller and ice skates, chains, metal signs, 
pins of all kinds, cutlery, razor blades, vanity cases, and such items 
as animal traps, bird cages, and fly swatters. 

The need of a code of fair competition for the employers and 
employees of these smaller industries is as real and important as for 
the larger industries, and should receive equal consideration. 

The classification of these separate industries, presented a most 
serious and complicated problem. The many codes required to be 
submitted and given public hearings would involve great expense; 
and the time consumed would, to a considerable extent, tend to defeat 
the purposes of the National Industrial Recovery Act. 

The problem was complicated, further, by the fact that hundreds 
of manufacturers produced many diversified items. The application 
of separate codes for these dift'erent items, when produced in the same 
plant, would require the operation of a factory under varying wages 
and hour provisions of the separate codes, causing confusion and, in 
many cases, impossible operating conditions. ^ 

The Administration was faced with the further problem of seeing 
that literally thousands of snudl shops, employing the same classes 
of labor, manufacturing specialties of one sort or another, were cov- 
ered by a code. Generally these shops vrere not members of any 
trade group, nor were they grouped together in an agency for the prep- 
aration and submission of a code. 

(328) 



329 

On August 10, 1933, approxin-.atoly (10 trado r.snociation rcprosont- 
ativcs and many individual inanulactuiTis nict informally to discusa 
the problems involved. Tlie,y were encouraged b}^ tlie Administra- 
tion to join together under some plan which would simplify theso 
problems for the industry. At this meeting the Fabjicated Metal 
Products Federation was formed and a basic code was prepared to 
cover the whole industry. This code contained uniform employment 
provisions and the opportunity for all well defined and representative 
trade groups to submit supplemental codes to cover the trade prac- 
tices of each subdivision and to create a Code Authority to administer 
such trade practices. 

The P'abricated Alctal Products Federation proceeded at once to 
enlist the support of a truh' representative number of trade associa- 
tions and individual members. With 113 such trade associations 
and approximately 600 individual members, the Administration re- 
gards this result as truly representative of the industry, as defined in 
the Basic Code submitted herewith. 

The problem of definition likewise was serious. It was finally 
worked out to cover the broad metal working industries, specifically 
excluding however such basic branches of metal working as machinery, 
automobile parts and accessories, railway supplies and equipment, etc, 

A standardized form of supplementary code and a simple procedure 
for public hearings and the adoption of supplementary codes has been 
prepared, so that each branch of the industry may get the benefit of 
such fair trade practices in addition to those contained in the Basic 
Code as may be necessary for the benefit of its own branch, and the 
benefit of individual administrative agencies set up to administer 
individual branches. 

In order to be sure that, insofar as possible, every one interested 
should receive notice of public hearing, individual notice of hearing 
was sent to over 7,700 concerns in addition to the standard form of 
notice. With each notice there was enclosed a copy of the code and 
a letter calling specific attention to the fact that the definition in the 
code as proposed would cover the operations of the manufacturer 
to whom notice was addressed. Since it was impossible to determine 
in all cases the specific product manufactured by a particular firm, 
there were some instances of notice being sent to firms whose products 
were covered by other codes. These, however, constituted a relatively 
small number of the firms to whom notices were sent. 

WAGES AND HOURS 

A 40-hour week with a 40j;f per hour wage for males and a 35^ per 
hour wage for females is established in the Northern W^age District, 
and a 35(^ per hour wage for males and a 30^ per hour wage for females 
is established in the Southern Wage District. 

Because of the fact that this industry covers plants manufacturing 
countless varieties of products, located throughout all parts of the 
country, special provision is made with respect to female wage rates. 
Generally speaking, it is a light manufacturing industry, and probably 
twenty percent of its employees are female, and it is estimated that 
a minimum wage differential of approximately ten cents heretofore 
has existed. It was felt advisable therefore to provide a \«'age differ- 
ential between male and female workers, with a proviso that where 



330 

female employees are used to replace male employees to perform cer- 
tain classes of work, such female emplo^^ees shall be paid the same rate 
of pay in effect for the male emploj^ees at the time of such replacement. 

It is estimated that eighty-five percent of the emploj^ees in the 
Industry are in the Northern Wage District. A fair adjustment for 
wages in the south was made by providing for the payment of the 
rates in existence for the same class of work on July 15, 1929, except 
that in no case are the minimum rates to be less than eighty percent 
of the standard minimum rates in the Southern District. 

Child labor is prohibited. 

Exceptions to the minimum hour and wage provisions are permitted 
in the case of beginners without experience for a sixty-dny period, and 
in the case of disabled employees and boys and girls between the ages 
of 16 and 18 years. These exceptions are limited to approximately 
five percent of the total number of employees and are to receive not 
less than eighty percent of the minimum wages 

Payment of time and one half is provided in all cases where hours 
of labor exceed those for which provision has been made. 

ECONOMIC EFFECT OF THE CODE 

Because of the short time available, and because of the fact that, 
except in specific trade groups, the industry w^as not organized, it was 
impossible to present accurate data from all plants as to the effect 
of this code on this industry. In general, however, it is well to point 
out that in normal times this industry operated on schedules of from 
50 to 55 hours a week. I believe, with the adoption of the 40-hour 
week as provided in the code, there will be an increase in the number 
of persons employed, on the same basis of activity, of approximately 
twenty-five percent. 

The industiy estimated, using as its basis the United States Census 
of Manufacturers and Bureau of Labor Statistics, that during the 
period from 1926 to 1929 there were normally employed 350,000 
employees. The Federation which is sponsoring the code estimated 
that there are at present 313,752 employees in the industry, an in- 
crease of approximately 109,237 since the first quarter of the year. 

An analysis of some sixty representative concerns shows that the 
number of employees has been increased by 53 percent since the 
first of the year, and that the average wage rate for unskilled workers, 
to whom the minimum rates apply, has been increased 16}2 percent. 

The minimum rates per hour have been increased nearly to the 
rates for unskilled labor in 1926, and under the code will be further 
increased to the 1926 rates, or higher. The total weekly pay rolls of 
these 60 representative concerns, including equitable adjustments of 
wages above the minimum, have since April 1, 1933, been increased 
98.9 percent, from $152,613 to $303,546. 

The average hours worked in these 60 representative concerns have 
been reduced 5.7 percent since July 1, 1933, and under the code will 
be reduced another 3 percent at least. Under a maximum 40-hour 
week it is estimated that the reduction in hours mil amount to ap- 
proximately 10 percent less than such maximum. If the rate of 
production in evidence October 1, 1933, continues, it is estimated 
that the code provision will result in a further increase in the number 
of employees of approximately 1 1 percent. 



331 

111 the administration of the eode the Fabiicaterl Metal Products 
Federation is set up as the Code Authority, to collect such data and 
statistics as arc required by the Administrator, and provisi(jn is 
made for the Code Authorities in supplementary codes, wherever 
pospil)le, to collect and compile this data for transmissi(^n to tho 
Federation. 

All action taken hy the Administrative agency is made .-ubject to 
the disapproval of the Administrator. 

I believe that this code accomplishes the following: 

1. It covers the operations of several thousand small metal work- 
ing firms, who might otherwise not be included in any code of fair 
competition submitted to the Administration; 

2. It materially reduces the normal hours of operation for employees 
in the industry; 

3. It sets a fair minimum basic wage rate with equitable adjust- 
ments provided for those receiving higher wages, which will result 
in material wage increases in the industry; 

4. It sets up uniform wage and hour conditions over this broad 
industiT, simplifying the problems of the manufacturer and at tho 
same time permitting him to obtain the benelits of the National 
Industrial Recovery Act; and 

5. It eliminates a tremendous amount of detail work and expense 
which would be involved in conducting several hundred public hear- 
ings on separate codes. 

I believe that the code is fair to Industry, to Labor, and to the 
Consumer, and in accordance with the intent and purposs of tho 
National Industrial Recovery Act. 

I find that: 

(a) The code as recommended complies in all respects with tho 
pertinent provisions of Title I of the Act, including without limita- 
tion, subsection (a) of Section 7 and suljsection (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 
Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating Industry; and that 

(c) The code as recommended is not designed to promote monopo- 
lies 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. 

Accordingly, I hereby recommend the approval of this proposed 
Code of Fair Competition for the Fabricated Metal Products Manu- 
facturing and Metal Finishing and Jvletal Coating Industry. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

FABRICATED METAL PRODUCTS MANUFACTURING AND 
METAL FINISHING AND METAL COATING 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 Fabricated Metal Products Manufacturing 
and Metal Finishing and Metal Coating Industry, and upon approval 
by the President shall be the standard of fair competition for such 
industry and shall be binding upon every member thereof. 

Article II — Definitions 

The term "Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry", hereafter referred to as the 
Industry, is defined to mean the manufacture for use or for sale of 
products in whole or in substantial part of metal (but not including 
machinery and machine parts for assembly therein, nor the erection 
of metal products in building construction) which are beyond the 
points of finished mill shapes or foundry operations, and which may, 
for practical administration of the National Industrial Recovery Act, 
be too varied and general to be defined and classified specifically in 
a separate code but which products can be classified in subdivisions 
of this particular Industry, as provided for herein; and, specifically, 
excepting such metal products as are subject to basic codes which 
have been approved by the President or wliich may be so approved. 

The term "employee" as used herein includes anyone engaged in 
the Industry in anj^ capacity receiving compensation for his services, 
irrespective of the nature or method of payment of such compensation. 

The term "employer" as used herein includes anyone by whom 
any such employee is compensated or employed. 

The term "member of the Industry" includes anyone engaged in 
the Industry as above defined, either as an emplovcr or on his own 
behalf. 

The terms "President", "Act", and "Administrator" as used 
herein shall mean respectively the President of the United States, the 
National Industrial Recovery Act, and the Administrator of Title I 
of said Act. 

The term "Federation", as used herein, is defined to mean Fabri- 
cated Metal Products Federation, or its successor. 

The term "Code Authority", as used herein, is defined to mean 
the Executive Committee of Fabricated Metal Products Federation. 

The Southern Wage District is defined as comprising North Caro- 
lina, South Carolina, Florida, Georgia, Alabama, Tennessee, Missis- 
sippi, Arkansas, Louisiana, Oklahoma, and Texas; and the Northern 
Wage District is defined as comprising all other States in the United 
States proper, including the District of Columbia and Alaska. 

(332) 



333 

Article III— Wages 

1. As required by Section 7 (a) of Title I of the National Industrial 
Recovery Act, the followinj^ provision^ are conditions of this Code: 

(1) That employees shall have the riijht to orc^anize 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 choos- 
mg; 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. 

2. On and after the effective date, emplo3^ers shall not employ any- 
one under the age of 16 j^ears, and no one under 18 years of age shall 
be employed in hazardous occupations; provided, however, that where 
a State Law provides a higher minimum age no person below the 
minimum age of said State Law shall be employed in that State. 

3. On and after the effective date the minimum wage which shall 
be paid by any employer to any employee engaged in the processing 
of products in the Industry and any labor incident thereto, shall be 
40^ per hour for males and 35^ per hour for females in the Northern 
Wage District; provided, however, that for a period of 60 days from 
the effective date of this Code, as provided for in Article 8 hereof, the 
minimum rates for female employees shall be 32)^^ per hour in the 
Northern Wage District. 

On and after the effective date the minimum Avage which shall be 
paid by any employer to any employee engaged in the processing of 
products of the Industry or any labor incident thereto shall be 35)zf 
per hour for males and 30^ per hour for females in the Southern 
Wage District, unless the hourly rates for the same class of work on 
July 15, 1929, were less than the above-specified minimums in the 
Southern Wage District, in which latter case the minimum hourly 
rates shall not be less than the rates in effect on that date; but in no 
case shall the minimum rates be less than 80% of the minimum rates 
of 35^ for male employees and 30^ for female employees in the Southern 
Wage District. 

Provided further, that for a period of not to exceed 60 days, begin- 
ners, without experience, may be paid not less than 80% of the 
minimum wages of 40^ for male employees and 35^ for female em- 
ployees in the Northern Wage District, and 35^ for male employees 
and 30^ for female employees in the Southern Wage District; and 
the total number of such beginners shall not exceed 5% of the total 
number employed by any such employer in any calendar month ; and 

Provided further, that where any State Law requires any higher 
minimum wages than those specified in this section, such higher 
minimum wages shall apply in all cases. 

Equitable adjustments to maintain differentials existing as of May 
1, 1933, in all pay schedules of factory employees (and other em- 
ployees receiving less than $35.00 per week) above the minimums, 
shall be made on or before fifteen days subsequent to the effective 



date of this Cede by sny employers who have not heretofore made 
such adjustments or who have not maintained rates comparable with 
such equitable adjustments; and the first reports of wages, required 
to be filed under this Code, shall contain all wage increases made 
smce May 1, 1933. 

In the case of emploj^ees performing work for which they are paid 
per piece of work performed, the minimum rate of pay wliich each 
member of the Industr}^ shall pay for such work shall produce earnings 
per hour per employee for the number of hours worked in any pay 
period at least equal to the minimum rate of pay per hour provided 
in tliis Code for the same t3^pe of labor on an hourly basis. 

4. The principle of equal rates of pay for male and female employees 
under like conditions of employment, performing substantially the 
same work is accepted herein; and where female employees are used 
to replace male employees performing certain classes of work such 
female employees shall be paid the rates of pay in effect for the male 
employees at the time of such replacement. 

5. On and after the effective date, the minimum wage that shall be 
paid by any employer to all other employees, except commission sales 
people and all employees covered by Section 3 of Article III hereof, 
shall be not less than at the rate of $15.00 per week in any city of over 
500,000 population, or in the immediate trade area of such city; nor 
less than at the rate of $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 at the rate of $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, to increase all wages 
by not less than 20%, provided that this shall not require minimum 
wages in excess of at the rate of $12.00 per week. 

Office boys and girls, 18 years and under, shall be exempt from the 
provisions of this section, provided they are paid at a rate of not less 
than 80% of the above minimum wages. 

Hours. — 1. On and after the effective date employers shall not op- 
erate on a schedule of hours of labor in excess of 40 hours per week per 
emploj^ee. 

Provided, however, that these limitations shall not apply to 
branches of this Industry in which seasonal or peak demands or 
break-downs place an unusual and temporary burden upon such 
branches; and that in no case shall the hours worked in any one week 
exceed 48 hours during such seasonal or peak periods; and 

Provided further, that the number of excess hours worked in any 
six (6) months' period, without the payment of overtime, may not 
exceed 32 hours, in the case of employees engaged in the processing 
of products in the Industry and labor incident thereto ; and may not 
exceed 48 hours, in the case of all other employees except executive, 
administrative and supervisory employees who receive $35.00 or 
more per week and outside salesmen, commission salesmen, and 
service men ; and 

Provided further, that any employee at the request of the employer 
may work additional hours beyond those specified in the two pre- 
ceding paragraphs, provided such additional hours shall be paid for 
at the rate of time and one half. 

No employee shall knowingly be permitted to work in the aggregate 
in excess of the above prescribed number of hours irrespective of 



335 

whether such employee be on the pay roll of more than one employer; 
and 

Provided further, that nothing in the foregoing employment pro- 
visions shall apply to executive, administrative, and super\asory 
employees who receive $35.00 or more pei- week; and outside sales 
and service men. 

General labor provisions. — 1. It is understood, howevei-, that old and 
partially disabled emjdoyees are not included in the above wage pro- 
visions, except that they shall in no case be paid less than 80% of 
the above minimums, and provided that the total number of such 
employees shall not exceed two employees in plants having less than 
100 employees; nor more than 2% of the total numbei- of employees 
in such plants employing 100 or more. 

It is further understood that watchmen are not included in the 
labor provisions of this article, except that they shall in no case be 
paid less than 80% of the minimum wages herein specified and in no 
case shall they be permitted to work longer than 56 hours in any one 
week unless they are paid time and one half for any hours in excess 
of 56 hours per week. 

2. Employers shall not reclassify employees, or duties, or occupa- 
tions of employees so as to defeat the purposes of the Act. 

Article IV — Administration 

1 . With a view^ to keeping the President informed as to the observ- 
ance or nonobservance of this Code, and as to whether the Industry 
is taking proper steps to effectuate, in all respects, the declared policy 
of the National Industrial Recovery Act, each member of the Industry 
shall furnish to the Federation duly certified reports on forms pre- 
scribed by the Federation covering employment and production 
statistics. 

Provided how^ever: that when any trade group within the Industry 
is represented by a truly representative trade association, such asso- 
ciation shall collect such statistics as are called for by the Federation 
and send them in compiled form to the Federation. The statistics 
covered by this paragraph shall conform with those which may be 
required by tlie President. 

2. The Federation, the applicant herein, is hereby constituted the 
agency to collect and receive such reports. 

3. All data filed in accordance with the provisions of tliis Code 
shall be confidential and shall not be revealed to anyone other than 
an authorized governmental agency. 

In addition to the information required to be submitted to the 
Federation there shall be furnished to government agencies such sta- 
tistical information as the Administrator may deem necessary for the 
purposes recited in Section 3 (a) of the National Industrial Recovery 
Act. 

4. To further effecti nte the policies of the Act, the Code Author- 
ity of the Federation shall administer this Basic Code and 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 
presented upon behalf of the Administrator or any member of 
the Industry regarding the operation, observance, or administration 



336 

of this Code. The President may appoint not to exceed three mem- 
bers, without vote, to serve with the Code Authority in its admin- 
istration of this Code. Such members if and when appointed shall 
serve for a term of from six months to one year and their appoint- 
ments shall be so arranged that they do not expire at the same time. 

5. There shall be no inecjuitable restrictions imposed on membership 
in the Federation and the Federation shall submit to the Adminis- 
trator true copies of its articles of association, by-laws, regulations, 
and any amendments when made thereto, together with such other 
information as to membership, organization, and activities as the 
Administrator may deem necessary to effectuate the purposes of the 
Act. 

6. When formal complaint is made to the Federation by any mem- 
ber thereof that any of the provisions of this Code have been violated 
by any employer or group of employers, then, after every effort has 
been made to settle such complaint within the subdivision (if any) 
falling under tliis Code, the proper agency of the Federation shall 
make such investigation as is necessary to determine the facts per- 
taining to the complaint and to that end may cause such examination 
or audit to be made of such pertinent data and records as may be 
necessary, and report to the Administrator the result of such exami- 
nation and investigation; such examination or audit shall be made by 
an impartial agency. 

7. Each member of the Industry, subject to the jurisdiction of this 
Code and accepting the benefits of the activities of the Federation 
hereunder, shall pay to the Federation his proportionate share of the 
amounts necessary to pay the cost of assembling, analyzing, and pub- 
lication of such reports and data and of the maintenance of the 
Federation in connection with its activities relative to the preparation 
and administration of this Code; said proportionate share to be based 
upon the volume of business and/or such other factors as the Code 
Authority may prescribe. 

8. Any action taken by the Code Authority or other trade group 
within the Industiy, for the purpose of making effective the pro- 
visions of this Code, may be submitted to the Administrator for 
approval and shall in an}^ case be subject to the disapproval of the 
Administrator. 

Article V — Trade Practices 

The following acts as described shall constitute unfair methods of 
competition: 

A. The sale or exchange of any product in w^hole or in part below 
the reasonable cost of such product to any individual employer; such 
costs to include all labor charges at rates provided for under tliis 
Code whether such products in whole or in part are produced in the 
United States or elsewhere. All methods used to determine such 
costs shall be subject to the approval of the Administrator; 

Provided however, that dropped lines, seconds, or inventories which 
must be converted into cash to meet emergency need, and new lines 
being introduced at high cost, may be disposed of in such manner and 
on such terms and conditions as are necessary to move such products 
into buyer's hands; and all such intended sales or other dispositions 
of such products shall be reported immediately to the proper member 



3:57 

trade association or directly, by the individual members of the Indus- 
try to the Code Authority of the Federation, as the case may be; 
and 

Provided further, that selling l)elow c( st (as defined in para^jraph 
one of this article) to meet existin<j; competition on ])r()(hicts of cqui- 
■valent design, character, (pudity, or specifications shall not be 
deemed a violation of this Article, except as provided for in supple- 
mental codes, as and when approved for any branch, subdivision or 
trade group of the Industry; and 

Provided further, that when a supplemental code filed by any 
branch, subdivision or trade group of the Industry under the Basic 
Code of the Fabricated Metal Products Manufacturing and Metal 
Finishing and Metal Coating Industry shall have been approved by 
the President, the sale or exchange of any product, in whole or in 
part, below the price conditions established in the supplemental code 
shall constitute a violation of this Code and be an unfair method of 
competition; and 

Provided further, that the provisions of this paragraph A shall not 
be deemed to apply to or affect the sale of any product for direct 
shipment in export trade by any member of the Industry within the 
meaning of the term "export trade" as it is used in the Export Trade 
Act. 

B. Withholding from, or inserting in any invoice a false record, 
wholl}' or in part, of the transaction represented on the face thereof, 
and the payment or allowance of secret rebates, secret refunds, 
secret credits, unearned discounts (whether in the form of money or 
otherwise), or the extension to certain purchasers of prices, services, 
or privileges not extended to all purchasers under like conditions. 

C. To defame or disparage a competitor directty or indirectly, by 
words or acts which untruthfully impugn his business integrity, 
his ability to keep his contracts, his credit standing, or the quality of 
his products. 

D. To imitate or simulate the trade mark, trade name, package, 
wrapper, or label of a competitor's product to such a degree as to 
deceive or have a tendency to deceive customers. 

E. To give, or permit to be given, to agents or employees or repre- 
sentatives of customers, or agents, employees, or representatives of 
competitors or of prospective customers, without the knowledge of 
their employers or principals, money or anything of value, to induce 
them to influence their employers or principals, to purchase, or 
contract to purchase, products of this Industry, or to influence such 
employers, or principals, to refrain from contracting with competitors. 

F. The false marking or branding of any product of the Industry 
which has the tendency to mislead or deceive customers or prospective 
customers, whether as to the grade, quality, quantity, substance, 
character, nature, origin, size, finish or preparation of any product 
of the Industry, or otherwise. 

G. The making or causing or knowingly permitting to be made or 
published any false, materially inaccurate or deceptive statement, by 
way of advertisement or otherwise, whether concerning the grade, 
quality, quaniity, substance, character, nature, origin, size, finish, or 
preparation of an^^ product of the Industrj^ or the credit terms, 
values, policies, or services of any member of the Industry, or other- 



338 

vdse, having the tendency or capacity to mislead or deceive customers 
or prospective customers. 

Article VI — Options 

1. This Code is intended to be a Basic Code and to cover the entire 
Industry. It is understood, however, that trade associations, groups 
of manufacturers or trade groups representing a substantial part of 
any specific subdivision of this Industry may formulate Supplemen- 
tary Codes of Fair Competition, defining specifically the subdivision 
and covering such regulations as are considered advisable by them. 
However, all employment provisions of such Supplementary Codes 
shall conform with the Basic Code. Such Codes when approved by 
the President shall have the same force and effect as this Basic Code. 

2. It is further understood that if at any time any representative 
group within the Industry, as defined in the National Industrial 
Recovery Act, included under tliis Basic Code, washes to function out- 
side the Basic Code, it may submit a separate code defining and cover- 
ing its specific subdivision of the Industry. Such a Code when 
approved by the President shall have the same force and effect as 
any code. 

Article VII — Modifications 

1. As required by Section 10 (b) of Title I of the National Indus- 
trial 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. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator and 
such notice and hearing as he shall specify and to become effective on 
approval by the President. 

Article VIII — Effective Date 

This Code shall become effective on the tenth calendar day after 
its approval by the President. 

Approved Code No. 84. 
Registry No. 1118—06. 

o 



Approved Code No. 85 
CODE OF FAIR COMPETITION 

FOR THE 

AMERICAN PETROLEUM EQUIPMENT INDUSTRY 
AND TRADE 

As Approved on November 2, 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 American Petroleum Equipment Industry 
and Trade, and hearings having been held thereon and the Adminis- 
trator having rendered his report containing an analysis of the said 
code of fair competition to gether 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 and 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, 

Admhiisfrafor. 

The White House, 

Novemler 2, 1Q3S. 

29942 296-183 34 (339) 



October 28, 1933. 
The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
American Petroleum Equipment Industry and Trade in the United ' 
States, conducted in Washington on October 20, 1933, in accordance 
with the pro\asions of the National Industrial Recovery Act. 

PROVISIONS for hours AND WAGES 

The maximum of 40 hours a week average in any 3 months' period 
and 48 hours or 6 days in any one week, is provided to all employees 
in tliis Industry and Trade, with the following exceptions: 

Employees in emergency maintenance or repair work will not be 
limited to 48 hours or 6 days a week. Watchmen and gate men will 
be permitted to work 56 hours a week. None of the limitations in 
hours apply to executives and their immediate assistants, employees 
in supervisory capacities and in research and teclmical work who 
receive $35.00 or more per week; nor to outside salesmen and service 
men. 

The minimum wage provided for any employee who works on an 
hourly basis is 40 cents an hour, except in specified Southern States, 
where the minimum provided is 35 cents per hour. Time and a third 
will be paid for work in excess of 40 hours a week or 8 hours a day. 

The minimum wage to all other employees will be $15.00 per week; 
except to office boys who will receive $12.00 a week, provided that 
they do not number more than 5 percent of the total employees to 
wliich tliis paragraph applies. 

The hourly wage rates apply to employees working on either a 
time or piecework basis. 

CHILD LABOR 

The age limitation is 16 years, except in hazardous occupations or 
those detrimental to health. The Code Authority will submit to the 
Administrator a list of such occupations within 30 days after the 
effective date of this Code. 

ECONOMIC EFFECT OF THE CODE 

The Petroleum Equipment Industry has been affected greatly by 
the curtailment of petroleum production. Sales in the Industry 
were approximatelv $300,000,000 in 1929, but were decreased to 
$70,000,000 in 1932. Employment feU from 22,000 in 1929 to ap- 
proximately 9,500 in 1932. In 1929 the Industry employed one man 
per $13,250 of yearly sales, but at the beginning of the year 1933 the 
annual rate of sales per employee was $6,650. 

The 40-hour week schedule fixed in this Code represents a substan- 
tial reduction from an average of 50 hours per week previous to the 

(340) 



341 

enactment of the National Industrial Recovery Act. Tlie application 
of the 40-hour schedule tot^ether with some increase in business has 
resulted since March 1, 19I-53, in an increase of about 4,000 employees, 
or an increase of 42 percent in employment from the low point of the 
depression. 

Wage provisions in this Code result in an average minimum wage 
increase of about 20 percent. Most of the plants in the Industry 
granted a 15 percent wage increase to all classes of employees upon 
the application of the 40-liour week. The total wage bill added to 
the Industry through increased wages and additional employees ex- 
ceeds 25 percent, which can only be offset by an increase in business. 
In offering the Code this Industry has demonstrated a ready com- 
pliance with the spirit of the Act. 

FINDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent pro\dsions 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 
American Petroleum Equipment Industry and Trade; and that 

(c) The Code as recommended is not designed to promote monopo- 
lies 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 adopted. 
Respectfully, 

Hugh S. Johnson, 

Adjninistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

AMERICAN PETROLEUM EQUIPMENT INDUSTRY 
AND TRADE 

Article I — Definitions 

Section 1. Whenever used in this Code, the terms hereinafter in 
this Article I defined shall, unless the context shall otherwise clearly 
indicate, have the respective meanings hereinafter in this Article I 
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. 

Sec. 2. The term "the Industry" means and includes the business 
of manufacturing machinery, equipment, or supplies used in the 
Petroleum Industry as in this Article I defined, excepting, however, 
any machinery, equipment, or supplies v\'hich are specifically included 
A\dthin any other basic Code of Fair Competition which has been or 
may be approved by the President. 

Sec. 3. The term "the Trade" means and includes tne business 
of selling machiner}^ eciuipment, supplies, or services to the Petro- 
leum Industry as in this Article 1 defined, excepting, however, any 
machinery, equipmeiit, supplies, or services, which are specifically 
included within any other basic Code of Fair Com])etition which has 
been or may be approved by the President. 

Sec. 4. The term "member of the Industry and Trade" means 
everyone, including, but without limitation, every person, partnersliip, 
association, or corporation engaged, in whole or in part, in the In- 
dustry and/or the Trade as in this Article I defined. 

Sec. 5. The term "the Petroleum Industry" means and includes the 
business of drilling, producing, pipe-line transporting, refining, or 
storing petroleum, or of producing or pipe-line transporting natural 
gas, in the United States of America. 

Sec. 6. The term "member of the Code" means and includes 
every member of the Industry and Trade which has signed and de- 
livered to the Code Authority a letter substantially in the form set 
forth in Schedule A attached hereto. 

Sec. 7. The term "product" means and includes any macliinery, 
equipment, supplies, or services manufactured for or sold to the 
Petroleum Industry as in this Article I defined, excepting, however, 
any machinery, equipment, supplies, or services, which are specifi- 
cally included within any other basic Code of Fair Competition wliich 
has been or may be approved by the President. 

Sec. 8. The term "employee" means and includes anyone en- 
gaged in the Industry or Trade in any capacity receiving compensation 
for his services irrespective of the nature or method of payment of 
such compensation. 

Sec. 9. The term "employer" means and includes anyone by 
whom any such employee is compensated or employed. 

Sec. 10. The term "the Association" means and includes the 
American Petroleum Equipment Suppliers' Association. 

Sec. 11. The term "price list" means and includes (a) a list of 
minimum prices or prices with maximum discounts therefrom at 

(342) 



343 

which the member of the Industry and Ti-ade i\]'u\<i, sucli list shall 
sell his or its products direct to consumers or ultimate users, and, if 
such ])roducts are sold by such members of the Jnthistjy and Trade 
through jobbers or wholesalers, (b) a list of mininnim prices or prices 
with maximum discounts therefrom at which the member of the 
Industry and Trade filing such list shall sell his or its products to 
jobbers or wholesalers. 

Sec. 12. The term "discount for early payment" means the 
amount of the deduction allowed for the cash payment of an invoice 
for products before the expiration of the period of free credit in 
respect thereof. 

Sp:c. 13. 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 i^roduct and the date from and after which such purchaser 
shall be recpiired to pay interest on the purchase price of such prod- 
uct or any part thereof which shall not have been paid prior to the 
expiration of such period. 

S^^r. 14. The term "the President" means the President of the 
United States. 

Sec. 15. The term "the Act" means the National Industrial Re- 
covery Act. 

Sec. 16. The term "the Administrator" means the Administrator 
of the National Industrial Recovery Act. 

Sec. 17. The term "the Code" means and includes tliis Code as 
originally approved by tlie|President of the United States and all 
amendments thereof made in accordance with law. 

Sec. 18. The term "the effective date" means the 11th day after 
the Code shall have been approved by the President of the United 
States, pursuant to the National Industrial Recovery Act, upon 
which date the Code shall become effective. 

Article II — Purpose of the Code 

Section 1. The purpose of the Code is to effectuate the policy of 
Title I of the Act. 

Sec. 2. The Code is adopted pursuant to Title I of the Act. 

Article III — Membership in the Code 

Section 1. It is of the essence of the Code that all members of the 
Industry and Trade wliich shall comply with the provisions of the 
Code shall be entitled to participate in its benefits under the terms 
and conditions set forth in the Code. 

Sec. 2. Any member of the Industry and Trade is eligible for 
membersliip in the Code. 

Sec. 3. Every member of the Association, and every member of 
the Industiy and Trade (which is not a member of the Association 
and which has the right to participate in the election of the Code 
Authority and receives the benefits of its activities), shall pay to the 
Code Authority its pro rata share of the cost of administering the 
Code. The reasonable share of the expense of administration shall 
be determined by the Code Authority, subject to review by the 
Administrator, on the basis of volume of business and/or such other 
factors as may be deemed equitable to be taken into consideration. 



344 

Article IV — General Labor Provisions 

Section 1. On and after the effective date, no person under 16 
years of age shall be employed in the Industry or Trade, nor anyone 
under 18 years of age at operations or occupations hazardous in nature 
or detrimental to the health of such employee. The Code Authority 
shall submit to the Administrator within thirty days after the effec- 
tive date a list of such occupations. 

Sec. 2. 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. 

Sec. 3. No employee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union or to 
refram from joining, organizing, or assisting a labor organization of 
his own choosing. 

Sec 4. Employers shaU 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 5, Within each State no provision of the Code shall supersede 
any laws of such State imposing more stringent requirements on em- 
ployers regulating the age of employees, wages, hours of labor, or 
health, fire or general working conditions, than under the Code. 

Sec. 6. Each member of the Industry and Trade shall post in con- 
spicuous places full copies of the Code. 

Sec 7. All wages shall be paid in lawful currency or by negotiable 
check paid on demand. 

Sec 8. On and after the effective date, the minimum wage that 
shall be paid by any member of the Industry and Trade to any 
employee employed on an hourly basis shall be forty cents per hour; 
except that in Texas, Oklahoma, Louisiana, Alabama, Georgia, 
Florida, North Carolina, South Carolina, Arkansas, Tennessee, 
Missouri, and Mississippi the minimum wage that shall be paid by 
any member of the Industry and Trade to any such employee shall 
be not less than thirty-five cents per hour. Any employee referred 
to in this Section 8 of Article IV who works in excess of 8 hours per 
day or 40 hours per week, shall be paid not less than time and one 
third for the excess hours so worked. 

Sec 9. On and after the effective date, the minimum wage which 
shall be paid by any member of the Industry and Trade to all other 
employees shall be at the rate of $15.00 per week, excepting office 
boys, who shall be paid not less than $12.00 in any one week, pro- 
vided, however, that the number of such boys shall not exceed 5% 
of the total number of employees engaged by any one employer and 
included within the scope of this Section 9 of Article IV, but in any 
event any employer may employ at least one office boy. 

Sections 8 and 9 of this Article IV establish a minimum rate of 
pay, regardless of whether an employee is compensated on a time rate, 
piecework, or other basis. 

Sec 10. On and after the effective date, none of the members of the 
Industry and Trade shall cause or permit any employee, except 
executives, their immediate assistants, those employed in supervisory 
capacities, and in research and technical work, who are paid not less 



345 

than $35.00 per week, and exccj)t also outside salesmen and outside 
service employees, to work at an average of more than 40 hours per 
week in any three months' period or to work more than 48 hours or 
more than 6 days in any one week. The maximum hours fixed in 
this Section 10 of this Article IV shall not apply to employees engaged 
in emergency maintenance or emergency repair work involving 
breakdowns or protection of life or property, but in no oveni shall 
any employee engaged in such emergency work, work at an average 
of more than 40 hours per week in any three months' period. The 
maximum hours fixed in this Section 10 of this Article IV shall not 
apply to watchmen and gate tenders, provided, however, such em- 
ployees shall not be permitted to work in excess of 56 hours in any 
one week. 

Sec. 11. Not later than GO days after the effective date each em- 
ployer in the Industry and Trade shall report to the Administrator 
through the Code Authority the action taken by such employer since 
June 16, 1933, in adjusting the hourly wage rates for all employees 
receiving more than the minimum rates provided in Sections 8 and 9, 
of this Article IV. 

Article V — Administration of the Code 

Section 1. The Association is hereby designated an agency for 
])romoting the performance of the provisions of the Code by the mem- 
bers of the Industry and Trade. The Board of Directors of the 
Association, together with two members of the Industry and Trade 
which are not members of the Association (if any members of the 
Industry and Trade which are not members of the Association so 
desire and so petition said Board of Directors), to be elected by such 
nonmembers by fair methods of election to be approved by the 
Administrator, in conjunction with such non-voting appointees of 
the National Recovery Administration as the Administrator may 
deem necessary, are hereby designated the Code Authority for admin- 
istering and supervising the performance of the provisions of the 
Code. The aforesaid Board of Directors shall consist of eleven 
members of the Industry as defined in Section 2 of Article I and 
eleven members of the Trade as defined in Section 3 of Article I. 

Sec. 2. The Code Authority may from time to time interpret and 
construe the provisions of the Code for members of the Code. 

Sec. 3. The Code Authority may from time to time appoint such 
officers or committees as it shall deem necessary or proper in order 
to effectuate the purpose of the Code, and it may delegate to any 
such officer or committee generally or in particular instances such of 
the powers and duties of the Code Authority under the Code as such 
Code Authority shall deem necessary or proper in order to effectuate 
such purpose; provided, however, that the Code Authority shall not 
be relieved of final responsibility with respect to any such delegated 
powers or duties. 

Sec. 4. A majority of the members of the Code Authority shall 
constitute a quorum for the transaction of business. 

Sec. 5. Each industrial or trade association directly or indirectly 
participating in the selection or activities of the Code Authority shall: 
(1) Impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its articles of association, bylaws, 



346 

regulations, and any amendments when made thereto, together with 
such other information as to membership, organization, and activities 
as the Administrator may deem necessary to effectuate the purposes 
of the Act. 

Sec. 6. In order that the Code Authority shall at all times be truly 
representative of the Industry and Trade and in other respects comply 
with tbe provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects compty with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

Sec. 7. The Administrator shall have the right to review, cancel, 
or modify any decisions or any other action pursuant to the Code by 
the Code Authority. 

Article VI — Open Price Reporting 

Section 1 . Each member of the Industry and Trade shall file with 
the Code Authority, within twenty days after the effective date, price 
lists, individually prepared by such member, and his or its terms and 
conditions of sale (which terms and conditions of sale shall specify 
the discount for early payment and the period of free credit), for 
products regularly manufactured for, or sold or furnished to, the 
Petroleum Industry b}^ such member, which price lists and terms 
and conditions of sale so filed with the Code Authority shall be open 
to inspection at all reasonable times by any member of the Industry 
and Trade. Revised price lists or revised terms and conditions of 
sale ma}' be filed from time to time thereafter with the Code Author- 
ity by any member of the Industry and Trade. If the prices noted 
in the revised price list of any such member, or if the revised tenns 
and conditions of sale are more favorable to the purchaser of prod- 
ucts than the terms and conditions of sale of such member, then on 
file with the Code Authority, the revised price list or revised terms 
and conditions of sale shall not become effective until ten days after 
the date of the filing thereof; otherwise the same shall become effec- 
tive on such date as the member of the Industry and Trade filing the 
same shall designate. Notice of the filing of any such revised price 
list or revised terms and conditions of sale shall be mailed by the 
Code Authority immediately to all other members of the Industry 
and Trade which, at the time of such filing, had on file with the Code 
Authority price lists for similar products. Any of such other mem- 
bers of the Industry and Trade may, if they desire, file revisions of 
their price lists or terms and conditions of sale, which shall become 
effective on the date when the revised price list or revised terms and 
conditions of sale first filed shall become eff'ective, if the prices noted 
in the revised price lists of such other members are not lower than 
the prices noted in the revised price list first filed or the terms and 
conditions of sale of such other members are not more favorable to 
the purchaser of products than the revised terms and conditions of 
sale first filed; otherwise the revised price lists or revised terms and 
conditions of sale of such other members shall not become effective 
until ten days after the date of the filing thereof. Any member of 
the Industry and Trade may, upon request and at the expense of 



347 

such member, obtain from the Code Authority copies of any such 
hst so filed. 

Sec. 2. Each member of the Industry and Trade shall file with the 
Code Authority within twenty days after the effective date, and 
from time to time thereafter, but not oftener than once every thirty 
days, a list of discontinued lines, or obsolete or surplus stocks, of 
products which such member is willing to sell below the prices noted 
in the price lists or on more favorable terms and conditions of sale 
than the terms and conditions of sale previously filed by such member 
with the Code Authority in accordance with the provisions of Section 
1 of Article VI, and in effect at the time of the filing of such list, and 
the prices at which, or the terms and conditions of sale in accordance 
with which, such member is willing to sell the same or any part 
thereof, which list shall contain such information as to the quantity, 
size, weight, etc., of the products noted therein as the Code Authority 
may deem necessary. Before any sales of any of such products shall 
be made by any member of the Industry and Trade, the list, prices, 
and terms and conditions of sale so filed must be approved by the 
Code Authority. Notice of the filing of any such list which shall 
have been approved by the Code Authority shall be mailed by the 
Code Authority to all members of the Industry and Trade which at 
the date of such filing had on file -s^dth the Code Authority price lists 
for similar products. Any member of the Industry and Trade may, 
upon request and at the expense of such member, obtain from the Code 
Authority copies of any such list so filed. When all of any class of 
products noted on any such list shall have been sold, the member of 
the Industry and Trade filing such list shall notify the Code Authority 
to that effect. The foregoing provisions of this Section 2 of Article 
VI shall at all times be subject to modification or disapproval by the 
Administrator. 

Sec. 3. Except as provided in Section 2 of this Article VI, no mem- 
ber of the Industry and Trade shall sell, lease, rent, exchange, or 
furnish any products at prices lower than the prices noted in the 
price list or on more favorable terms and conditions of sale than the 
terms and conditions of sale previously filed by such member with 
the Code Authority in accordance with the provisions of Section 1 of 
this Article VI, and in effect at the time of such sale, lease, rental, 
exchange, or furnishing of such products. 

Article VII — Sales 

Except as provided in Section 2 of Article VI, no member of the 
Industry and Trade shall sell, lease, rent, exchange, or furnish any 
products at prices that, or upon such terms and conditions of sale as, 
will result in the purchaser's paying for such products less than the 
cost thereof to the seller; provided, however, that the seller shall be 
permitted to meet the price of a competitor whose price does not 
violate the provisions of the Code. In order to determine such cost, 
each member of the Industry and Trade shall conform his or its 
costing system to such accounting standards and shall include therein 
such elements of cost as shall be approved by the Code Authority 
and the Administrator. 



348 

Article VIIT — Recorts axd Statistics 

Section 1. The Code Authority shall have power, from time to 
time, to require each member of the Industry and Trade to furnish 
to the Code Authority such information concerning the number of 
his or its employees, rates of pav (except rates of pay of executives), 
hours of labor, and other conditions of employment, and such other 
informatiou as may be necessary or proper in order to administer the 
Code. The Code Authority shall not require any information 
ree:ardino; trade secrets or the names of the customers of any member 
of the Industry and Trade. In order that the President may be 
informed as to the observance and operation of the Code, the Code 
Authoritv shall make such reports as the Administrator may require. 

Sec. 2. In addition to the information required to be submitted 
to the Code Authority, there shall be furnished to Government 
agencies such statistical information as the Administrator may deem 
necessar^^ for the purposes recited in Section 3 (a) of the Act. 

Article IX — Grouping of Members 

Aggregations of members of the Code or aggregation of members 
of the Code and of the Industry and Trade having a common interest 
and common problems may be grouped by the Code Authority for 
administrative purposes in proper subdivisions or product classifica- 
tions under such rules and regulations not inconsistent with the Code 
as may be adopted, from time to time, by the Code Authority. 

Article X — Unfair Practices 

For the purposes of the Code, the following described acts shall 
constitute unfair practices in the Industry and Trade. 

(a) Making or promising to any purchaser or prospective pur- 
chaser of any product, or to any officer, emplo^^ee, agent, or repre- 
sentative of any such purchaser or prospective purchaser, any bribe, 
gratuity, gift, or other payment or remuneration, directly or indirectly. 

(b) Procuring, otherwise than with the consent of any member of 
the Industry and Trade, any information concerning the business of 
such member which is properly regarded by such member as a trade 
secret or confidential within his or its organization. 

(c) The imitation or simulation by any member of the Code of any 
design, style, mark, or brand used by any other member of the Code, 
or the adoption or use by any member of the Code of the same trade 
name or company name of any other member of the Code. 

(d) Using or substituting any material superior in quality to that 
specified by the purchaser of any product. 

(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 (including what is known in the Industry 
or Trade as a policy 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 
information relative to any product or price for any product of any 
member of the Industry and Trade, or the credit standing or ability 



349 

of any meniber thereof to perform any work or manufacture or produce 
any product, or to the conditions of employment among employees 
of any member thereof. 

(g) Inducing or attempting to induce by any means any party to a 
contract with a member of the Industry and Trade to violate such 
contract. 

(h) Aiding or abetting any i)erson, })artnershi]), association, or 
corporation in any unfair practice, as set forth in this Article X. 

(i) Making or giving to any purchaser of any product any guaranty 
or protection in any form against decline in the nuu'ket price of such 
product. 

(j) Stating in the invoice of any product as the date thereof a date 
later than the date of tne shi})ment 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 any 
description w^iich does not fully describe such product in terms cus- 
tomarily used in the Industry or Trade. 

(1) Rendering to any purchaser of any product in or in connection 
with the sale of such product any service (except technical or engineer- 
ing services), unless fair compensation for such service shall be paid 
by such purchaser. 

(m) Consignment of any product to any prospective consumer or 
ultinuite user thereof without any obligation on the part of such 
prospective consumer or ultimate user to purchase the same. 

The conducting of field tests or demonstrations of new products 
by any member of the Industry and Trade, without compensation to 
such member, shall not be deemed to be an unfair practice. 

(n) The sale of an indefinite quantity of products for a price certain. 

(o) The guaranty of any product beyond the regular guaranty as 
specified in the terms and conditions of sale on file with the Code 
Authority and in effect at the time of the sale of such product. 

(p) Extending jobbers' or wholesalers' prices to anyone who is not, 
in the opinion of the Code Authority, a jobber or wholesaler, after 
receiving notice to that effect from the Code Authority. 

(q) Buying or offering to buy from purchasers of products any 
goods, wares, or merchandise of their manufacture in excess of ordi- 
nary business requirements, when the intent or result of such 
purchase is to secure business. 

(r) The loan for use of any product to any prospective consumer or 
ultimate user thereof when there is no obligation on the part of such 
prospective consumer or ultimate user to purchase, lease, or rent such 
product in accordance with the price list and terms and conditions 
of sale on file with the Code Authority and in effect at the time of 
such purchase, lease, or rental of such product. 

Any unfair practice by any member of the Industry and Trade' shall 
constitute a violation of the Code by such member. 

Article XI — Violations of the Code 

Section 1. Any violation of any provision of the Code, or any 
amendments thereto, by any member of the Industry and Trade shall 
constitute a violation of the Code by such member. 

Sec. 2. Upon written complaint to the Code Authority by any 
member of the Code that any of the provisions of the Code have been 



350 

violated by any other member of the Code, the Code Authority shall 
investigate the facts in connection with the alleged violation, and to 
that end may cause such examination or audit to be made as may be 
deemed necessary and proper, and, upon proof to the satisfaction of 
the Code Authority that a %dolation has occurred, the Code Authority 
shall, without in any way affecting any penalties and liabilities imposed 
by statute, take such steps as, in its opinion, it deems advisable to 
prevent a repetition of such violation. 

Sec. 3. Recognizing that the violation by any member of the Code 
of any pro\asion of either Article VI or Article VII will disrupt the 
normal course of fair competition in the Industry and Trade and 
cause serious damage to other members of the Code, and that it will 
be mipossible 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 if it shall be determined by the Code Authority, 
after investigation, that any member of the Code has violated any 
provision of either said Article VI or Article VII, such member shall 
pay to the Treasurer, for the time being in office, of the Association, 
£s liquidated damages, in addition to all penalties and liabilities 
imposed by statute, a sum equal to twenty per centum of the invoiced 
price of any products in connection with which such violation 
occurred. Any amounts so paid to, or collected by, the said Trea- 
surer of the Association under this Article XI shall be held and dis- 
posed of by him as part of the general funds of the Association. 

Sec. 4. Anything in the Code to the contrary notwithstanding, 
the Code Authority by the affirmative vote of two thirds of all the 
members thereof may waive any liability for liquidated damages 
imposed by or pursuant to any provision of the Code for anj^ viola- 
tion of any provision thereof, if in its discretion it shall decide that 
such violation was innocently made and that the collection of such 
damages will not in any material extent tend to eft'ectuate the policy 
of Title I of the Act. 

Article XII — General Provisions 

Section 1. To the extent required or permitted by or under the 
provisions of Title I of the Act, the provisions of the Code shall apply 
to and be binding upon every member of the Industry and Trade, 
whether or not such member shall be a member of the Code. 

Sec. 2. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the 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, but without limitation, to the 
right of the President to cancel or modify liis approval of the Code or 
any conditions imposed by liim upon his approval thereof. 

Sec. 3. The Code is intended to be a basic code and study of the 
trade practices of the Industry and Trade will be continued by the 
Code Authority with the intention of submitting from time to time 
to the Administrator recommendations for additions, amendments, 
or alterations of such provisions of the Code, applicable to members 
of the Industry and Trade, as are not recpiired by the Act to be in- 
cluded herein, and for supplemental codes applicable to one or more 
branches .or subdivisions or product classifications of the Industry 



351 

and Trade, such su})plemental codes, however, to con form to and bo 
consistent with the provisions of the Code as now constituted or liere- 
after amended. No sucli proposed ad(htions, amendments, or altera- 
tions to tlie Code, or supplemental codes, siiall, however, be submitted 
by the Code Authority to the Administrator with a recommendation 
for approval except only after the affirmative vote of three fourths of 
all the members thei'eof. 

Sec. 4. If any member of the Industry and Trade is also a member 
of any other industry or trade than the Industry or Trade as defined 
in Section 2 and Section 3, respectively, of Article 1, the provisions 
of the Code shall apply to and affect only that part of his or its busi- 
ness which is included in the Industry or Trade. 

Sec. 5. Nothing in the Code contained, except the Ceneral Labor 
Provisions as set forth in Article IV of the Code, shall be deemed to 
apply to or affect the sale of any product for direct shipment, or the 
sale of any product purchased for direct shipment, in export trade by 
any member of the Industry and Trade 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 Code Authority shall otherwise determine, 
the sale of any product for direct shipment, or the sale of any prod- 
uct purchased for direct shipment, by any such member, to the Pliil- 
ippines, Hawaii, Puerto Rico, the Canal Zone, or other insular pos- 
sessions of the United States of America. 

Sec. 6. Any member of the Industry and Trade may withdraw from 
membership in the Code after June 16, 1935, or after such published 
date as may be fixed by proclamation of the President or by joint 
resolution of the Congress as the date on which the emergency recog- 
nized by Title I of the Act has ended. Upon such withdrawal, all 
obligations and liabilities of such member under the Code shall cease, 
except those for liquidated damages or assessments theretofore ac- 
crued under any provision of the Code. 

Approved Code No. 85. 
Registry No. 1323/04. 



SCHEDULE A 
form of letter of assent to the code 

American Petroleum Equipment Suppliers' Association, 
Temporary address, 4^3 Esperson Bldg., Houston, Texas. 

Gentlemen: The undersigned desiring to become a member of the Code of 
Fair Competition of the American Petroleum Equipment Industry and Trade, a 
copy of which is annexed hereto, hereby approves, and by this letter subscribes 
to, all of the provisions of such Code, effective as of the effective date of such Code, 
or as of the date of the mailing of this letter if it shall have been mailed subsequent 
to such effective date of the Code, and hereby agrees with every person, partner- 
ship, association, or corporation which shall be or hereafter become a member of 
the Code, that the Code shall constitute a valid and binding agreement between 
the undersigned and all such other members. 

The undersigned hereby authorizes the Board of Directors of the American 
Petroleum Equipment Suppliers' Association, or such members thereof as may be 
designated by said Board of Directors, hereinafter called the "Presentation Com- 
mittee," to represent the undersigned in the presentation and submission of such 
Code to the proper authorities of the National Recovery Administration for ap- 
proval by the President of the United States, hereby giving and granting unto 
said Presentation Committee full power and authority to consent to or approve 
such additions to or modifications thereof as may be required by the National 
Recovery Administration. 

The execution and delivery of this letter by the undersigned shall be deemed 
to be a subscription to and ratification and approval by the undersigned of any 
such additions or modifications consented to and approved by the Presentation 
Committee. 

The undersigned hereby transfers, assigns, and delivers to the American Pe- 
troleum Equipment Suppliers' Association all rights and causes of action what- 
soever hereafter accruing to the undersigned under the Code for liquidated dam- 
ages by reason of any violation by anyone, and hereby designates and appoints 
the Treasurer, for the time being in office, of said Association the true and lawful 
attorney in fact of the undersigned to demand, sue for, collect, and receipt for 
any and all amounts that shall be owing to the undersigned by reason of any such 
right or cause of action, and to compromise, settle, satisfy, and discharge any 
such right or cause of action in the name of the undersigned, or in the name of 
said Treasurer, as said Treasurer shall elect. 

Until written notice of a change of address of the undersigned is filed with the 
Association, the address of the imdersigned shall be as set forth at the foot of this 
letter. 

Very truly yours, 

, President. 

(352) 



Approved Code No. 86 
CODE OF FAIR COMPETITION 

FOR THE 

TOY AND PLAYTHINGS INDUSTRY 

As Approved on November 4, 1933 

BY 

PRESIDENT ROOSEVELT 



E xecutive 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 Toy and Playthings 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 : 

That the application of the provisions of section 5, article III, 
insofar as such section provides for the payment of time and one 
third for all hours over forty per week worked by employees to whom 
such provision applies, shall be stayed until January 1, 1934, at 
which time such provisions shall become effective and have the same 
force and effect as any other provision of the code. 

FRANICLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

November Ji., 1933. 

29943 296-184 34 (353) 



October 31, 1933. 
The President, 

The 'White House. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Toy and Playthings Industry of the United States, submitted by 
the Toy Manufacturers of the U.S.A., Inc., located at 200 Fifth Ave- 
nue, New York, New York, was conducted in Washington on the 
1st and 2nd of September, 1933, in accordance with the provisions of 
the National Industrial Recovery Act. The Association claims to 
represent 65 percent of the industry in addition to a number of 
independent manufacturers who approve the code as submitted by 
the Association. 

The maximum hours per week provided in this Code are 40 per 
week, with provision for peak demand and emergencies. This is a 
reduction of approximately eight to fourteen hours per week from 
the hours worked in the industry in the past. The limitation of 
hours will increase employment approximately 20 percent, which 
will restore employment in this industry to approximately 90 per- 
cent of the 1929 figure. 

The minimum wage of $12.00 per week, or 30 cents per hour, 
while relatively lower than that of other industries, is consistent 
with conditions of manufacture in the industry and the unskilled 
nature of a large portion of the work. Wages in this industry have 
been very low in the past. 

The Census of Manufactures reports a total value of products for 
1929 of approximately $103,647,000. The ratio of wages to value of 
products in 1929 for the industry as a whole was 25.1 percent. 

From evidence adduced at the hearing and recommendations of 
the Research and Planning Division, a provision for the elimination 
of home work as of January 1, 1934, has been included. 

Further evidence establishes the fact that this industry will re- 
ceive practically no benefit from the operation of this code until the 
year 1934 because of outstanding contracts which are made early in 
the year for the manufacture and delivery of the products of the 
industry to the trade. The additional expense which must be ab- 
sorbed due to the higher wages and shortened hours is a very definite 
burden until such time as these outstanding contracts are consum- 
mated. 

It is, therefore, recommended that a stay of operation of the time 
and one third provision for all hours worked per week over 40 as set 
forth in Section 5, of Article III, of the Code, be granted by execu- 
tive order until January 1, 1934, at which time this provision shall 
become effective. 

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- 

(354) 



355 

tion, subsection (a) of Section 7, and subsection (b) of Section 10 
thereof; and that 

(b) The Toy Manufacturers of the U.S.A., Inc., the applicant 
group herein, imj^oses no inequitable restrictions on admission to 
membership and is truly representative of the Toy and Playthings 
Industry; and that 

(c) The Code as recommended is not designed to promote monopo- 
lies 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. 

This industry has cooperated in a most satisfactory manner with 
the Administration in the preparation of this Code. From evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as now 
proposed and revised represents an effective, j)ractical, equitable solu- 
tion for this industry, and its approval as herewith submitted is 
recommended. 

Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION 

FOR THE 

TOY AND PLAYTHINGS INDUSTRY 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial Re- 
covery Act, the following provisions are submitted as a Code of 
Fair Competition for the Toy and Playthings Industry, and upon 
approval by the President, shall be the standard of fair competition 
for this industry. 

Article II — Definitions 

1. As used herein the term " Toy and Playthings Industry " is de- 
fined to mean the manufacture and production of any or all of the 
general classes of articles as listed in Schedule A, annexed to this 
Code and made a part hereof, or any part or parts of any one or 
more of such articles, and such kindred lines of manufacture or pro- 
duction 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 receiving com- 
pensation for his services, irrespective of the method of payment of 
such compensation, and shall include all proprietors, partners, super- 
visors, and foremen when actually engaged in productive work. 

3. The term " employer " as used herein includes anyone engaged 
in the manufacture or production of any or all of the articles or any 
part or parts of any one or more of such articles as listed in Schedule 
A annexed to this Code. 

4. The term " cleaners " shall mean that class of employees who 
perform only such work as is commonly performed by janitors. 

5. The term " effective date " as used herein shall mean the second 
Monday following the approval of this Code by the President. 

6. The terms " President ", "Act ", and "Administrator " as used 
herein shall mean respectively the President of the United States, 
the National Industrial Recovery Act, and the Administrator of such 
Act. 

Article III — Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours in any one week except executives who receive over $35.00 per 
week, and outside sales persons, supervisory staff, and office em- 
ployees who shall be permitted a tolerance of ten percent above the 
regular hours of work. 

2. The maximum hours fixed in the foregoing section shall not 
apply to employees on emergency repair work, involving break- 
downs or protection of life or property, but in such special cases at 
least time and one third shall be paid for all hours worked in excess 
of the maximum hours herein provided. 

(356) 



357 

3. The maximum hours of labor for firemen, enjijineers, truck 
drivers, shipping crews, and cleaners shall be forty (40) with a toler- 
ance of ten percent; provided, that the rate of pay for all hours in 
excess of forty (40) per week shall be one and one third times the 
regular rate. 

4. Watchmen may be employed in pairs and shall not work more 
than 36 and 48 hours on alternate weeks, or an average of 42 hours 
per week. 

5. For those branches of the Toy and Playthings Industry in 
which seasonal or peak demand places an unusual and temporary 
burden, such number of hours may be worked as are required by the 
necessities of the situation, but in no case shall an employee w^ork 
more than 48 hours in any one week, or 96 hours in any calendar year 
in excess of the maximum provisions set forth in paragraphs 1 and 3 ; 
provided, however, that time and one third shall be paid for all hours 
per week over forty. At the end of each calendar month every em- 
ployer shall report to the Administrator, through the Code Au- 
thority, in such detail as may be required, the number of man-hours 
worked in that month on account of seasonal or peak demand re- 
quirements and the ratio which said man-hours bear to the total 
number of man-hours of labor during said month. 

6. No employee shall work, or be permitted to work, for a total 
number of hours in excess of the number of hours prescribed herein 
whether he be employed by one or more employers. 

7. Home work is hereby prohibited after January 1, 1934. 

Article IV — ^Wages 

1. No employee shall be paid at less than the rate of thirty cents 
(30^) per hour or twelve dollars ($12.00) per week for forty (40) 
hours of labor, except that: 

(a) Learners who have had no previous experience or empl»3y- 
ment in this industry shall, for a six weeks' learning period, receive 
80 percent of the minimum above provided or nine dollars and sixty 
cents ($9.60) per week for forty (40) hours of labor, and shall be 
limited to ten percent of the total number of employees, and except 
further, that in plants totaling less than twenty-five employees one 
learner may be allowed for each six emploj^ees. 

2. This article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate or piecework or 
other basis. 

3. It is the policy of the members of this industry to refrain from 
reducing the compensation for employment which compensation was, 
prior to June 16, 1933, in excess of the minimum wage herein set 
forth, notwithstanding that the hours of work in such emploj^ment 
may be reduced ; and all members of this industry shall endeavor to 
increase the pay of all employees in excess of the minimum wage, as 
herein set forth, by an equitable adjustment of all pay schedules. 

4. Employers shall not reclassify employees so as to defeat the 
purposes of the Act. 

5. Female employees performing substantially the same w^ork as 
male employees shall receive the same rates of pay as male employees. 



358 

6. A person whose earning power is limited because of physical 
or mental defect, age, or other infirmity, may be employed on light 
duty below the minimum wage set by the Code, provided the employer 
obtains from the State Authority designated by the United States 
Department of Labor a certificate authorizing such employment at 
such wages and for such hours as shall be stated in the certificate 
the provisions of such certificate to designate the minimum wage and 
the maximum hours to be observed by the employer in relation to 
such employees. 

Article V — Child Labor 

No person under sixteen (16) years of age shall be employed in 
the industry, nor anyone under eighteen years of age at operations 
or occupations hazardous in nature or detrimental to health. The 
Code Authorit}^ shall submit to the Administrator for approval 
before January"^ 1, 1934, a list of such hazardous occupations. Reli- 
ance in good faith by an employer upon any evidence as to age ad- 
missible in the courts of the State in which such employment takes 
place shall be deemed a compliance with this provision. 

Article VI — Administration 

To fui-ther effectuate the policies of the Act, a Code Authority is 
hereby established to cooperate with the Administrator in the ad- 
ministration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of nine members to be ap- 
proved by the Administrator and chosen b}^ a fair method of selec- 
tion by the National Committee of the Toy and Playthings Industry 
and not more than three members without vote, appointed at the 
discretion of the President. 

2. The National Committee shall consist of the following: 
The Board of Directors of the Tov Manufacturers of the 

U.S.A., Inc. 
Three (3) members of the Advisory Committee, as constituted 

and provided by the By-Laws of the Association. 
The Chairman of* the Marketing Committee of the Toy Manu- 
facturers of the U.S.A., Inc. 
Representatives of each Division as outlined below : 
Balloon Division Costume and Playsuit Division 

Ball Division (Rubber) Desk Division 

Book and Game Division Doll and Baby Carriage Divisior 

Doll Division Sled Division 

General Toy Division Sporting Goods Division (Juve- 

General Wood Toy Division nile) 

Iron Toy Division Soft Stuffed Toy Division 

Playground Equipment Division Tinsel Division 

(juvenile) \ATieel Goods Division 

Pool and Billiard Table Division Croquet Division 

(Juvenile) Metal Toy Division 

Pull Toy Division Party Goods and Decorations 

Paint and Crayon Division Division 

(a) Other divisions may be established upon application to the 
Code Authority. 



359 

(b) Each Division may designate or establish its own Adminis- 
trative Conmiittee, subject to the approval of the Code Authority 
and the Administrator, which shall make recommendations pertain- 
in<r to all conditions and problems relating exclusively to such 
division. 

(c) Proposals affecting more than one division may be initiated 
by any division affected, and shall be submitted for consideration to 
the Code Authority; and, with the approval of the Administrator, 
shall be binding upon the proposing divisions and all other divisions 
affected thereby. 

3. The Toy Manufacturers of the U.S.A., Incorporated, shall be 
the Agency under the Code Authority for administering the provi- 
sions of this Code, 

(a) There shall be submitted to the Administrator the Articles 
of Association, By-Laws, Regulations, and any amendments wdien 
made thereto, and such other information as to membership, organi- 
zation, and activities as the Administrator msij require to effectuate 
the purposes of this Act. 

(b) No inequitable restrictions on admission to membership in the 
Toy Manufacturers of the U.S.A., Inc., or any other tracle asso- 
ciation or organized group participating in the activities of the Code 
Authority shall be imposed, and any member of the industry shall 
be eligible for membership in any such trade association or organ- 
ized group upon compliance with the provisions of the by-laws relat- 
ing to membership, provided that any person applying for such 
membership shall, in addition to the payment of such dues as are 
imposed and paid by all other members, accept a reasonable and 
equitable share of the cost of code development and administra- 
tion. Such members of the industry who do not choose to become 
members of any trade association or organized group may partici- 
pate in the activities of the Code Authority as herein provided by 
paying to the Code Authority such proportionate part of the cost 
of the code development and administration as the Code Authority, 
subject to the Administrator's approval, shall prescribe as fair ancl 
equitable. 

4. The Code Authority, subject to review by the Administrator, 
shall have the following duties and powers to the extent permitted 
by this Act: 

(a) To require and receive reports as to wages and hours of labor 
showing actual hours worked by employees and minimum rates of 
wages. 

(b) To receive monthly reports showing stocks on hand, orders, 
shipments, and cancellations, and 

(c) In addition to the information required to be submitted to 
the Code Authority, there shall be furnished to governmental agen- 
cies such statistical information as the Administrator may deem 
necessary for the purposes cited in Section 3a of the National 
Industrial Recovery Act, and such other data or information as 
the Code Authority, subject to the approval of the Administrator, 
may from time to time require. 

(d) Except as otherwise provided in the National Industrial Re- 
covery Act, all statistical data filed in accordance with the provisions 
of paragraphs (a) and (b) above, shall be confidential; and reports, 



360 

statistical data, etc., submitted by one emploj^er shall not be revealed 
to any other employer except for the purpose of administering and 
enforcing the provisions of this Code, 

5. The Code Authority shall make recommendations to the 
Administrator as follows: 

(a) Recommendations as to the disposal of dropped lines, some- 
times designated as " close-outs." 

(b) Recommendations regarding price differentials for all chan- 
nels of distribution. 

(c) Recommendations as to additional discounts to be. granted on 
orders placed prior to October 1. 

6. Prices of all products shall be based upon accurate and known 
costs, as established by an adequate cost-finding system, approved 
by the Administrator, which shall be open to inspection at reason- 
able times by authorized non-member representatives of the Toy 
Manufacturers of the U.S.A., Inc. 

Article "V II — Trade Practices 

The following practices constitute unfair methods of competition 
and are prohibited : 

1. The selling of any article below cost, as determined by an 
adequate system of accounting. 

2. The selling directly or indirectly or through a sales agent, 
by any means whatsoever, any product of the industry at a price 
lower, or at a discount greater or on more favorable terms of pay- 
ment than those provided in the current net price list or price list 
and discount sheets on file with the Code Authority. However, it 
is hereby specifically provided that any member of the industry may 
meet competition in any specific instance by selling his product at 
a price not less than the lowest price of a comparable article on file 
with the Code Authority. 

3. Consignments. — The selling of goods on consignment or enter- 
ing into agreements, such as the re-dating of orders, shipping in 
excess of order, exchanging or accepting in return goods after selling 
season, or other practices which violate the principle of a bona fide 
sale. Goods for reconditioning shall be accepted only under the 
written permission of the employer and providing adequate charges 
shall be made for the cost of reconditioning ; and transportation costs 
shall be paid by the customer. 

4. Delivery Practices. — The delivery of merchandise in quantities 
in excess of that actually ordered and for which the buyer has con- 
tracted to pay, and the sending of unordered merchandise either to 
regular or prospective customers. 

5. Rehates. — The granting of secret rebates or secret concessions 
in any form. 

6. Misrepresentation. — Misrepresentation of merchandise on the 
part of any parties in respect to style, color, size, substance, design, 
or qualit}^ or the use of false, deceptive, untrue, or misleading state- 
ments by way of advertising, branding, or otherwise, concerning the 
nature and character of own or competitor's merchandise on the part 
of any or all parties concerned. 



361 

7. Commercial Bribery. — Commercial bribery, whatever the form. 

8. Copying or Piracy m the Industry. — The copying of lines or 
items by competitors for their own use prior to the end of the year 
following that in which they were so originated. 

9. Allowa7ices.— {si) The making of allowances for advertising in 
any form. 

(b) The making of allowances in any form for special sales or 
other special or extraordinary sales events. 

(c) The making of allowances in any form for freight, except 
wherein a particular division of the Toy and Playthings Industry, 
with the approvgil of the Code Authority, shall have established and 
approved such allowances for the members of that division and only 
then when such allowances have been included in the sales price of 
the merchandise. 

(d) The making of allowances for demonstrations in any form. 
However, the demonstration of merchandise in retail stores may be 
arranged by manufacturers of the Toy and Playthings Industry, 
provided : 

(1^ That all demonstration costs shall be paid by the employer. 

(2) That the demonstrators shall be acceptable and accountable to 
both the employer and the retailer. 

(3) That the demonstrators may be discharged by either the 
employer or the retailer. 

(4) That the demonstrators shall devote their entire time and 
attention to the demonstration of the employer's merchandise and 
shall not write sales checks. 

(5) That the costs of such demonstrations shall not be deducted 
by the retailer when making payments for the merchandise. 

10. Interference with Contractual Relations. — Maliciously induc- 
ing or attempting to induce the breach of an existing oral or written 
contract between a competitor and his customer or source of supply. 
or interfering with or obstructing the performance of any such 
contractual duties or services. 

11. The offering or giving of prizes, premiums, or gifts in connec- 
tion with the sale of products, or as an inducement thereto, by any 
scheme which involves lottery, misrepresentation, or fraud. 

12. Defamation. — The defamation of competitors by falsely im- 
puting to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations or by 
the false disparagement of the grade or quality of their goods. 

13. Threats of Litigation. — The pubhshing or circularizing of 
threats of suits for infringement of patents or trade marks or of 
any other legal proceedings not in good faith, with the tendency or 
effect of harassing competitors or intimidating their customers. 

14. Espionage of Competitors. — Securing confidential information 
concerning the business of a competitor by a false or misleading 
statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair method. 

15. Other Unfair Practices. — Nothing in this Code shall limit the 
effect of any adjudication by the Courts or holding by the Federal 
Trade Commission on complaint, finding, and order, that any prac- 
tice or method is unfair, providing that such adjudication or holding' 
is not inconsistent with any provision of the Act or of this Code. 



362 
Article VIII — Terms of Sale, Payment, Etc. 

The following rules and regulations governing marketing prac- 
tices shall be observed by all emploj^ers in the Toy and Playthings 
Industry except where a particular division of the Industry, with 
the approval of the Code Authority and the Administrator, shall 
have established exceptions therefrom. 

1. Terms of Sale. — Prices quoted shall be on the basis of a bona 
fide sale and full details of all terms of sale as to date, payment, 
quantit}^, price, delivery arrangements, and the like shall be set forth 
in a written order and shall be strictly adhered to in the execution 
of the order. 

2. Terms of Payment. — Selling terms shall not exceed two percent 
(2% ) ten days, net thirty days : Bills are due and payable net at 
the office of the seller within 30 days from the date of the invoice. 

Datings shall not exceed the following schedules : 

(a) Orders received for shipment in January, February, and 
March may be dated the following April 1st upon the customer's 
agreeing that shipment may be made at any time at the seller's con- 
venience prior to April 1st. Orders received for shipment April, 
May, and June may be dated the following July 1st upon the cus- 
tomer's agreeing that shipment may be made at any time at the 
seller's convenience prior to July 1st. Orders received for shipment 
in July, August, and September may be dated the following October 
1st, upon the customer's agreeing that shipment may be made at 
any time at the seller's convenience prior to October 1st. When dat- 
ings are granted, the discount of two percent (2% ) may be allowed 
on payments made on or prior to the 10th of that month and payment 
will be due net, in full, on the 30th day of that month. 

(b) An anticipation may be allowed for advance payment on 
shipments of dated orders, but such anticipation shall not exceed 
% of 1 percent per month. No datings will be granted on shipments 
in October, November, or December. 

3. Freight. — All shipments shall be f.o.b. city of manufacture. In 
any case where the employer has a warehouse stock in another citj', 
the goods shall be priced to include full cost of freight plus ware- 
house expense, freight and warehouse expense to be shown on the 
invoice. 

4. Samples. — Samples requested by customers shall be submitted 
only on the basis of an outright sale and shipped f.o.b. factory. Such 
samples shall not be subject to special sample discounts and shall 
not be returnable. 

5. Price Lists. — Each employer shall, ten days prior to the effective 
date of his price list, file with the Code Authority net current price 
lists and discount sheets, as the case may be. 

6. Revised price lists, except in case of increases, of each and every 
item, with discounts thereon, shall, ten (10) days prior to the effective 
date of the revised price list, be filed from time to time thereafter 
with the Code Authority. 

Article IX — General 

As required by Section 7 (a) of Title I of the National Industrial 
Recovery Act, the following provisions are conditions of this Code : 



1. Employees shall have the ri*;ht 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. 

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 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 pro- 
visions of subsection (b) of Section 10 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 Title I of 
said Act, and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of this Code or any con- 
ditions imposed by him upon his approval thereof. 

5. Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements regulating the age 
of employees, wages, hours of ^vork, or health, fire, or general work- 
ing conditions than under this Code. 

6. Each emplo3^er shall post in conspicuous places full copies of 
this Code. 

7. No provision of this Code shall be so applied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate against small enterprises. 

8. 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 of the United States, be modified or 
eliminated as changes in circumstances or experience may indicate, 
such supplemental codes, however, to conform to and be consistent 
with the provisions of this Code as now constituted or hereafter 
changed. It is contemplated that from time to time supplementary 
provisions or additional codes will be submitted for approval of the 
President of the United States to prevent unfair and destructive 
competitive practices and to further effectuate the purposes and 
policies of Title I of the National Industrial Recovery Act. 

9. Any member of this industrj^ who, prior to June 16, 1933, con- 
tracted to buy or sell any goods, wares, or merchandise at a price 
fixed as of the date of said contract for future delivery, shall make 
a bona fide effort to arrive at an equitable adjustment on the price 
thereof as fixed by said contract to meet any proper increase in 
the cost of such goods, wares, or merchandise imposed by virtue of 
any provision of the National Industrial Recovery Act and in the 
event such effort fails to result in a mutually satisfactory adjustment 
either party to said contract may refer the same for adjustment to 
the Executive Committee of the industry, which said Committee 



364 

with the aid and assistance of the Administrator or his properly 
designated agent or agents shall endeavor to arrive at an equitable 
adjustment thereof. 

10. Pn'ce increases. — ^Whereas the policy of the Act to increase 
real purchasing power will be made impossible of consummation if 
prices of goods and services increase as rapidly as wages, it is 
recognized that price increases should be delayed and that, when 
made, the same should, so far as reasonably possible, be limited to 
actual increases in the seller's costs. 

Approved Code No. 86. 
Registry No. 1660-01. 



SCHEDULE A 

The Toy and Playthings Industry shall include all employers who produce any 
or all of the general classes of Toys, playthings, or kindred lines listed below : 



Aerial Toys 

Animals 

Athletic Goods (Juvenile) 

Balls and Balloons 

Banks 

Blackboards 

Boats 

Books 

Construction Toys 

Croquet 

Decorative Accessories (Xmas) 

Dolls and Accessories 

Easter Novelties 

Doll Furniture and Houses 

Educational Toys 

Furniture, Juvenile and Doll 

Games 

Guns (Toy) and Accessories 

Housewares 

Infants' Toys 

Iron and other Small Metal Toys 

Kindergarten Toys 



Mechanical Toys 

Motion Picture Projectors and Cameras 
(Toy) 

Musical Toys 

Noisemakers 

Paints and Crayons 

Playground Equipment (Juvenile) 

Playsuits and Costumes 

Pool and Billiard Tables (Juvenile) 

Rubber Toys 

Skiis (Juvenile) 

Soldiers 

Sleds and Toboggans 

Steel Toys 

Tools and Tool Chests (Juvenile) 

Trains and Accessories 

Wheel Goods, including Wagons, Ve- 
locipedes, Doll and Baby Carriages, 
etc. 

Wood Toys 

Miscellaneous 

Party Goods and Decorations 



(365) 



o 



APPROVED CODE NO. 87 
CODE OF FAIR COMPETITION 

FOR THE 

LEATHER AND WOOLEN KNIT GLOVE INDUSTRY 

As Approved on November 4, 1933 

BY 

PRESIDENT ROOSEVELT 



E xecutive Order 

All 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 and Woolen Knit Glove 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, 

A dminis trot or. 
The White House, 

Novemher ^, 1933. 

29944 296-1 Sr. 34—1 (367) 



November 3, 1933. 
The President, 

The 'White House. 

Sir : The Leather and Woolen &iit Glove Industry, as defined by 
its code, includes manufacturers of all leather gloves, mittens, and 
woolen knit gloves. The code for this industry has been sponsored 
by its one representative trade association, namely, the National 
Association of Leather Glove Manufacturers, Inc., of Gloversville, 
N.Y. Members of this association manufacture upwards of ninety 
percent (90%) of the all-leather gloves made in the United States. 
A proposed code of fair competition for the industry was presented 
to the Administrator by the association on August 15, 1933, was 
revised and resubmitted, and a hearing on the revised code was held 
on September 6, 1933. The code was further revised in subsequent 
conferences, and is herewith recommended for executive approval. 

The Code of Fair Competition for the Leather and Woolen Knit 
Glove Industry may be summarized as follows : 

Article I states the general purposes of the code. 

Article II sets forth certain definitions of terms used in the code, 
and fixes the effective date. 

Article III 

1. Specifies the maximum hours of labor for employees in the 
industry ; 

2. Provides that individual cutters may not work in excess of 
the maximum hours in one or more factories, or by supplementing 
their factory work by cutting skins at home. 

Article IV 

1. Designates the minimum hourlj^ wages applicable to the in- 
dustry, limits the employment of apprentices, provides that skilled 
labor shall be paid at rates equitably adjusted above the minimum ; 

2. Provides for a report to the code authority with reference to 
glove-cutting apprentices ; 

3. Specifies the maximum percentage of superannuated or par- 
tially incapacitated workers to be employed, permitting such workers 
to be paid their earnings at piece rates without regard to minimum 
wages ; 

4. Provides that minimum wage applies irrespective of whether 
an employee is engaged on piecework or timework operations; 

5. States that female and male employees, performing substan- 
tially the same Avork, shall be equalh^ compensated; 

6. Empowers the code authority to designate for skilled employees 
scales above the minimum provided in Article IV, paragraph 1, and 
to make appropriate geographical differentials in this scale; 

(368) 



369 

7. Requires the postin*^ of wage schedules in workrooms ; 

8. Provides for periodic reports from tlie code autliority to the 
Administrator in respect of the operation of the wage provisions. 

Article V 

1. Prohibits the employment in the industry of persons under 
sixteen (16) years of age; 

2. Quotes the provisions of paragraph 1 of Section 7 (a) of the 
National Industrial Recovery Act; 

'i. Quotes the provisions of paragraph 2 of Section 7 (a) of the 
National Industrial Recovery Act; 

4. Quotes the provisions of paragraph 3 of Section 7 (a) of the 
National Industrial Recovery Act ; 

5. Provides that the code shall not supersede State laws imposing 
more stringent requirements ; 

6. Prohibits the reclassification of employees or duties of occupa- 
tions to defeat the purposes of the Act ; 

7. Provides that each employer shall post in conspicuous places 
in his workroom full copies of the code; 

8. Provides for the reduction of home work by at least 25 percent 
within six months after the effective date of the code, and by at least 
another 25 percent within one year after the effective date of the 
code, and specifies that within that time the code authority shall 
make recommendations designed to eliminate outside work com- 
pletely; the employment of additional outside operators after the 
date of approval of this code is also prohibited and the names of all 
out&ide employees are required to be registered with the code 
authority ; 

9. Requires the payment of minimum hourh' earnings to em- 
ployees who are required or permitted to remain in the shop waiting 
for work ; 

10. States that manufacturers are to provide work to contractors 
only if they specify that such contractors shall employ labor under 
the terms specified by the code. 

Article VI 

Creates a code authority for the industry, outlines its duties and 
responsibilities, and designates the National Association of Leather 
Glove Manufacturers as the agency to receive reports referred to in 
the code; 

Creates a Fair Trade Practice Agency and provides for the sub- 
mission to the Administrator of the information necessary for the 
purposes specified in Section 3 (a) of the Act. 

Article VII 
Sets forth provisions of the code governing importers. 

Article VIII 
Enumerates Fair Trade Practices. 



370 
Article IX 

1. Quotes Section 10 (b) of the National Industrial Recovery Act 
with respect to changes in the code ; 

2. Provides that the code may be modified with the approval of 
the President as experience may dictate. 

Article X 

Prohibits monopolistic practices. 

Article XI 

Seeks to limit increases in prices of goods to the actual increases 
in the seller's costs. 

Article XII 

Provides for the appropriate adjustment of the increased costs of 
executing contracts as a result of the operation of the National 
Industrial Eecovery Act or of the code. 

Article XIII 

States the effective date of the code. 

nature or THE INDUSTRY 

The Leather and Woolen Knit Glove Industry is essentially a 
small-scale industry in which wages represent nearly fifty percent 
(50%) of the total of manufacture. In 1931 its two hundred 
twenty-seven (227) establishments employed an average of seven 
thousand eight hundred eighty-four (7,884) factory wage earners, 
or less than an average of thirty-five (35) per plant. This is exclu- 
sive of home workers who constitute a substantial percentage of total 
employees. During the past three (3) decades there has been a 
definitely downward trend in the number of wage earners employed 
by the industry. In 1929 the industry employed an average of nine 
thousand two hundred three (9,203) factoiy employees as compared 
with fourteen thousand three hundred fortj^-five (14,345) in 1899. 
It has alreadj'- been noted that further declines had occurred by 1931, 
and it is estimated that wage earners emploved decreased even 
further in 1932. 

Little information is available in respect of the number of home 
workers employed by the industry. On the basis of a study made in 
Fulton County, N.Y., in June, 1933, by the Women's Bureau of the 
United States Department of Labor, it is estimated that thirty-eight 
and two-tenths percent (38.2% ) of the total number of employees in 
this district are home workers who receive eighteen and nine-tenths 
percent (18.9%) of the total payroll of the industry. Outside of 
the Fulton County vicinity, there is little home work. For the in- 
dustry as a whole, it is estimated that nearly two-thirds (%) of the 
total number of employees are women. 



371 

The production of leather gloves in the United States is highly 
localized. According to the 19:U Census of Manufactures over two- 
thirds (%) of the production of the industry, on the basis of value 
of product, was manufactured in Fulton County, N.Y. In this 
County, about one-third {%) of the factory w^orkers of th(! inchistry 
are employed, and household production is carried on most exten- 
sively. Glove making is the most important occupation of the work- 
er of this community. 

in the leather glove and mitten industry by far the greater num- 
ber of operators are paid on a piecework basis. AA^age rates for the 
Fulton County branch of the industry have long been fixed by mutual 
agreements between the employers and the International Glove 
Workers' Union. Schedules similar to those prevailing in Fulton 
County are in elfect throughout most of the industry. Home workers' 
rates have generally been ten percent (10%) below those paid for 
factory work. 

The productive operations of the industry are subject to pronounced 
seasonal variations. Leather gloves are produced largely for a late 
fall and winter demand. This results in the greatest activity in the 
cutting department during the months from August to October. The 
peak of total employment ordinarily comes somewhat later. 

Imports of leather gloves represent a greater number of dozens 
than does domestic production, and many manufacturers are also 
importers. In the distribution of leather gloves manufacturers and 
importers have many common problems. 

THE HOME-WORK PROBLEM 

In the leather-glove industry, hand labor has been displaced by 
machines to but a relatively minor extent. Moreover, the hand labor 
necessary in the conduct of the industry is, in general, highly skilled. 
Practically all of the productive operations of the industry can be 
carried on within the homes of the workers, and one of the major 
problems of the industry relates to the competitive abuses arising 
from home-work operations. 

Because of the widespread extent of home work, it was evident 
that the system could not be immediately eliminated without a serious 
disorganization of the industry. Article VI, paragraph 8, of the 
code, provides for a realistic approach to the gradual elimination of 
home-work operations. 

Within six (6) months after the effective date of the code twenty- 
five percent (25%) of the total outside sewing machine work is to 
be discontinued, and by the end of one (1) year after the effective 
date a further reduction of outside work by at least another twenty- 
five percent (25%) is required. With full knowledge of the effect 
of these steps, the code authority is then to review the subject and 
make such recommendations as appear practical for the complete 
elimiiiati(ni of outside Avork. li; is b.dieved thiu thh; is a sound 
procedure for gradually eliminating liome work from an industry 
which could not at once abandon it without disorganization. Com- 
mendation is due the Association for the spirit in wdiich it ap- 
proached and met this problem. 



372 

MINIMUM WAGES 

Article lY, paragraph 1, of this code provides that minimum earn- 
ings shall not be less than at the rate of thirty-two and one-half cents 
(321/^^) per hour, except for beginners, who are guaranteed earnings 
of not less than twenty-two and one-half cents (221/20) pei' hour and 
as much more as may be earned at regular piece rates. No person may 
be classed as a beginner for a period in excess of the first twelve (12) 
weeks' work in the industr3^ While most of the employees of this 
industry work at piece rates and have earnings in excess of thirty- 
two and one-half cents (32i/2(i) per hour, a significant number of 
workers on an hourly basis earn below this minimum. The study 
made by the Women's Bureau of the United States Department of 
Labor shows that in June 1933 over two-fifths (%) of the men on an 
hourly wage basis received less than thirt}?^ cents (SOi) per hour, while 
approximately one-half {Y2) of the women paid on a time-work 
basis received twentj^-five cents (25^) per hour or less. Hence the 
minimum rates provided by this code will result in significant in- 
creases in earnings. Approximately eight thousand (8,000) workers 
in the industry will undoubtedly receive an increase in their average 
earnings as a result of the wage provisions of the code. 

In lieu of providing minimum wages for occupations above the 
least skilled classifications, Article IV, paragraph 6, of the code, 
specifies that minimum scales for piecework operations shall be 
established for the entire industry. Such scales are to be issued b}^ 
the code authority following their approval by the Administrator. 
In the deterini nation of these minimum scales, the code authority is 
to be guided by the Fulton County scales as determined from time 
to time by the collective bargaining arrangements now in effect. The 
code specifically provides that in determining these scales, revisions 
or adjustments of the Fulton County schedules may be made to 
meet differences in regional requirements. 

The inclusion in a code of piece-rate scales or the incorporation 
thereof by reference raises questions both of law and of policy. It 
is inadvisable to incorporate bj^ reference rules or regulations over 
which the Administration may have no control, which may vary from 
time to time, and which may not be known to all members of the 
industry. On the other hand, when in an industry standards are 
highest in a market which is responsible for two-thirds (%) of 
the production, unfair competition would result if other markets were 
left completely uncontrolled in respect of the wages there paid to 
skilled workers. It is believed that Article IV, paragraph 6, as 
phrased in the code, is not open to the objections stated above. 
Adequate control is reserved to the Administrator who will scruti- 
nize any proposed scales, rules, or regulations before they can be 
proclaimed by the code authority and will, if there is objection, give 
a hearing to the objectors. 

HOURS or LABOR 

Because of the nature of the product, a pronounced seasonality 
prevails in the production activity of the industry. The production 
peak for cutting occurs from August to October when production is 



373 

considerably in excess of other months in the year. Because it was 
anticipated that this code would become effective at the time of major 
activity, it is provided that, prior to December 1, 1933, employees 
may work not to exceed forty-four (44) hours per week. After the 
current seasonal requirements are met, the industry plans to take 
steps to level out its production schedule. In anticipation of this 
objective, the code provides that after December 1, 1933, employees 
in this industry are to work no more than eight (8) hours a day, 
and not to exceed forty (40) hours in any one (1) week. Discretion 
is given the code authority, however, subject to approval by the 
Administrator, to fix periods during the time of seasonal demands 
when a work week of forty-four (44) hours may be utilized for a 
period not to exceed four (4) months in any one (1) year. This is 
for emergency demands only. In all cases the industry is to 
operate on a single-shift basis. 

The maximum hours specified by Article III, paragraph 1, of 
the code, should result in a significant increase in the numbers 
employed by the industry. In July, 1933, the Women's Bureau of 
the United States Department of Labor investigated the hours of 
work prevailing in Fulton County. This study revealed that over 
seventy-five percent (75%) of the women employees worked from 
forty-nine (49) to forty-nine and one-half (49^/2) hours. Over ninety 
percent (90%) of the men were on a schedule of fifty-five (55) 
hours per week and ten (10) hours per day. The reduction of hours 
in the factories in conjunction with the control provided over home- 
work operations will undoubtedly resvilt in a substantial increase of 
employment. 

THE FAIR TRADE PRACTICE AGENCY 

During recent years, the demand for leather gloves has been 
fairly steady as regards numbers of pairs purchased. This has ])een 
true despite the fact that to a limited degree fabric gloves of various 
types compete with leather gloves. Nevertheless, for many years the 
domestic manufacture of leather gloves has been subject to a declin- 
ing trend. Despite a relatively high tariff, imports of women's 
leather gloves now represent a greater number than those produced 
domestically. Many of the manufacturers of leather gloves supple- 
ment their lines with imported products. Because of the class rela- 
tionship of the two types of product, and because of common sales 
problems, representatives of both manufacturers and importers of 
leather gloves desired to be governed by the fair trade practice pro- 
visions of this code. It was evident, however, that the importers 
had no direct concern with the provisions of the code relating di- 
rectly to manufacturing operations. Because of the identity of the 
merchandising problems faced by both manufacturers and importers, 
Article VI, paragraph 3, of the code, provides that importers of 
gloves shall be bound by Article VIII of the code. For the admin- 
istration of this article, a Fair Trade Practice Agency for this in- 
dustry has been constituted, as follows : 

Three (3) members designated by the National Association of 
Glove Manufacturers, 

29944 296-185 34 2 



374 

Three (3) members designated by the Glove Importers Associa- 
tion of the United States, and 

One (1) member appointed by the Administrator. 

For the administration of other parts of this code, a code author- 
ity has been created on which the importers have no representation. 
This administrative body is composed of jfive (5) members appointed 
by the National Association of Glove Manufacturers, two (2) mem- 
bers appointed by the Administrator on nomination of the Labor 
Advisory Board, and one (1) or more members may be appointed 
by the Administrator. 

OTHER FEATURES OF THE CODE 

Other portions of this code as recommended cover the following 
matters : 

1. The number of beginners in occupations other than glove cut- 
ting shall at no time exceed ten percent (10%) of the number of 
manufacturing employees in a factory, except that every factory may 
have at least one (1) beginner. Because of peculiar conditions exist- 
ing in the industry respecting the conditions of work of glove cutting 
apprentices, the code provides for the creating of an investigating 
committee of employers and employees. This committee is to rec- 
ommend a policy for the governing of the wages of apprentices for 
this occupation, and limiting the number who can be so employed. 
Such recommendations are to be made to the code authority. 

2. Because of the fact that the minimum wages provided by this 
code might result in a hardship to superannuated or partially phys- 
ically incapacitated workers, it has been determined that such work- 
ers may be retained although their earnings at prevailing piece rates 
may be less than the minimum earnings provided by the code. The 
number of workers in this classification, however, shall not exceed 
ten percent (10%) of the employees in any factory. 

3. It appears that in this industry contractors have occasionally 
employed labor without assuming full responsibility for the payment 
of the prevailing wages. Article V, paragraph (10) of the code, 
provides that an employer shall make no contract with a contractor 
unless it provides that the contractor shall employ labor under 
the terms specified in the code. 

4. In order to insure that the terms of this Code may become fully 
api^licable throughout the industry, Article V, paragraph (7), speci- 
fies that employers shall post in their workrooms such copies of wage 
schedules and conditions of labor as shall be distributed by the code 
authority. 

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 National Association of Leather Glove Manufacturers, 
Inc., imposes no inequitable restrictions on admission to membership 



375 

therein and is truly representative of the Leather and Woolen Knit 
Glove Industry ; and that 

(c) The code as recommended is not designed to promote monopo- 
lies 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, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

LEATHER AND WOOLEN KNIT GLOVE INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Leather and Woolen Knit Glove In- 
dustry, and shall be binding upon every member thereof. 

Article II — Definitions 

The terms " Leather and Woolen Knit Glove Industry " and " In- 
dustry " as used herein include the manufacture of all leather gloves 
and mittens and/or woolen knit gloves, and such branches or sub- 
divisions thereof as may from time to time be included under the 
provisions of this Code. 

The term " employee " as used herein includes anyone engaged in 
the industry in any capacity receiving compensation for his service, 
irrespective of the nature or method of payment of such compensa- 
tion. 

The term " employer " as used herein includes anyone by whom 
any such employee is compensated or employed. 

The term " member of the industry " includes anyone engaged in 
the industry as above defined, either as an employer or on his own 
behalf. 

The term "Association " means the National Association of Leather 
Glove Manufacturers, Inc. 

The terms " President ", "Act ", and "Administrator ", as used 
herein, shall mean, respectively, the President of the United States, 
the National Industrial Recovery Act, and the Administrator oi 
said Act. 

The term " effective date " means the second Monday after the 
approval of this Code by the President. 

Article III — Hours 

1. No employees excepting repair shop crews, firemen, cleaners, 
watchmen, drivers, shipping, and supervisory staff, shall be permitted 
to work in excess of forty-four ^44) hours per week up to December 1, 
1933, or thereafter more than lorty (40) nours per week, nor more 
than eight hours in any one day. The Code Authority may, with the 
approval of the Administrator, fix periods during the seasons of 

(376) 



peak production during which the work week shall not exceed forty- 
four (44) hours, for a total period not to exceed four (4) months in 
any one (1) year. 

2. No glove cutter shall be given employment outside of a fac- 
tory or in more than one (1) factory with the effect of affording 
employment for more than the maximum number of hours pre- 
scribed, and no skins shall be issued for cutting outside the factory 
or after regular working hours except by express permission of the 
Code Authority. 

Article IV — Wages 

1. No employee shall be paid at less than the rate of thirty-two 
and one-half cents (321/20) per hour (except beginners and ap- 
pi entices) and the rates for skilled labor shall be equitably ad- 
justed above tliis minimiuii. Beginners on productive operations in 
the industry shall be paid not less than at the rate of twenty-two 
and one-half cents (22i/)0) per hour and as much more as the be- 
ginner may earn on the regular piecework basis prevailing in the 
occupation; provided, that no one shall be classed as a beginner 
longer than for the first twelve (12) weeks' work in the industry; and 
provided further, that the total number of beginners in any one 
establishment shall at no time exceed ten percent (10%) of the total 
number of manufacturing emploj'ees; but provided also, that each 
factory may have at least one (1) beginner. 

2. The subject of glove-cutting apprentices shall be considered 
by a committee composed of an equal number of employers and em- 
ployees which shall work out policies and submit recommendations 
to the Code Authority and to the Administrator. 

3. Superannuated or partially incapacitated workers now em- 
ployed in the industry on piecework m^j be retained and paid their 
earnings at the piece rates without regard to the minimum w^iges 
provided herein. The number thus retained shall not, in any event, 
exceed ten percent (10%) of the employees in the factory. 

4. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time-rate, piecework, or 
other basis. 

5. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male em- 
ployees. 

6. The minimum rates of wages of skilled workers provided for 
in paragraph 1 of this Article shall be proclaimed from time to time 
by the Code Authorit}^, after approval by the Administrator. The 
aforesaid minimum scales of wages shall be based upon the Fulton 
County wage scale, with any revisions, additions, amendments, or 
adjustments approved b}^ the Administrator, to meet regional condi- 
tions and to maintain fair competition in the industry. 

7. Employers shall post in their workrooms such copies of wage 
schedules in effect from time to time as may be distributed by the 
Code i^uthority. 

8. The Code Authority shall report to the Administrator from 
time to time as to the effect of the operation of his provision, both 
generally and in cases of individual hardship, so that the Administra- 
tor may determine whether or not the provisions of this section shall 
be changed or exceptions granted hereunder. 



378 

Article V — General Labor Provisions 

1. No person under sixteen (16) 3'ears of age shall be employed in 
the industry. 

2. 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. 

3. No employee and no one seeking employment shall be required 
as a condition of emplo3ment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing. 

4. Employers shall comply with the maximum hours of labor, min- 
imum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

5. Within each State this Code shall not supersede any laws of such 
State imposing more stringent requirements on employers regulating 
the age of employees, wages, hours of work, or health, fire or general 
working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the Act. 

7. Each employer shall post in conspicuous places in his work 
rooms full copies of this Code. 

8. For the purjDose of eliminating home work in the industry as 
rapidly as possible, within six (6) months after the effective date 
hereof, employers shall reduce their outside work by at least twenty- 
five percent (25%) of sewing-machine operators, taking as a basis 
for reduction the number of outside workers as of the effective date 
hereof. Within one (1) year after the effective date hereof, em- 
ployers shall effect a further reduction of outside work by at least 
another twenty-five percent (25%), taking as a basis for reduction 
the number of outside workers as of the effective date hereof. 

Within one (1) 3'ear after the effective date hereof, the Code 
Authority shall conduct investigations and make recommendations 
to the Administrator designed to eliminate outside work completely, 
which recommendations when approved by the Administrator shall 
have full force and effect as provisions of this Code. 

From the date of approval of this Code, no additional outside 
operators shall be employed and no employer shall increase outside 
work for the purpose of evading the provisions of this Code. Em- 
ploj^ers shall register with the Code Authority the names of all 
outside workers. 

9. When an emploj'er cannot supply work to a piece worker, the 
latter shall be permitted to go home for the remainder of the dav. 
If a worker is required or permitted to remain in the shop, such 
employee shall be r(munr;-ated for all such tirae at not less than 
the minimum hourly rate provided in this Code. 

10. Employers shall not make contracts with contractors for any 
operation in the industry unless the contract provides that the con- 
tractor shall employ labor under the terms specified in this Code. 



379 
Article VI — Administration 

1, To further effectuate the policies of the Act, a Code Authority 
is hereby constituted to cooperate with the Administrator in the 
Administration of this Code. 

(1) The Code Authority shall be constituted as follows: 

(a) It shall consist of seven (7) members or such other number 
as may be approved from time to time by the Administrator, to be 
selected as hereinafter set forth. 

(b) Five (5) members shall be appointed by the Association, 
fairly representative of the industry; one (1) member may be ap- 
pointed by the Administrator on the nomination of the Labor Ad- 
visory Board; one (1) or more members may be appointed by the 
Administrator. 

(c) Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall: (1) impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of asso- 
ciation, by-laws, regulations, and an}' amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem neces- 
sary to effectuate the purposes of the Act. 

(d) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such hear- 
ings as he may deem proper; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selection of the Code Authority. 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator on review to disapprove or modify any action taken by the 
Code Authority. 

(a) For the purpose of keeping the Administrator informed as 
to the observance of this Code of Fair Competition, and better to 
enable the industry to carry out the policy of the National Industrial 
Recovery Act, the Code Authority may require from each employer, 
in such form and at such intervals as it may prescribe, certified re- 
ports which shall include the following: 

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

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

3. Consumption and stocks of raw materials. 

(b) The National Association of Leather Glove Manufacturers, 
Inc., Gloversville, N.Y., is hereby constituted the agency to col- 
lect and receive the reports referred to above and to gather such 
other information as may be required by the Code Authority, for 
the carrying out of the purposes of the National Industrial Recovery 
Act, and shall make reports of the same to the Administrator and 
Code Authority. 

(c) The Code Authority shall make reports to the Administrator 
of the conditions in the industry and may from time to time make 
recommendations to him with regard to additions to, or changes in. 



380 

the provisions of this Code, including any that may be desirable to 
meet conditions in any special branch of the industry. 

(d) The Code Authority may conduct investigations and hearings 
insofar as may be necessary to determine whether employers are 
complying with the provisions of this Code. 

(e) For the purpose of enabling the Association to secure accurate 
information, as provided in Article VI, Section 2 (a) of this Code, 
and thus aiding in the carrying out of the purposes of the National 
Industrial Recovery Act and of this Code, it shall be the duty of the 
Association to endeavor to secure, as speedily as possible, the adoption 
of such uniform cost and accounting systems as may be recommended 
by the Code Authority and approved by the Aclministrator, after 
such notice and hearings as he may prescribe. 

(f ) Members of tlie Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to par- 
ticipate in the selection of the members thereof by assenting to and 
complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of this administration. The reason- 
able share of the expenses of administration shall be determined by 
the Code Authority, subject to review by the Administrator, on the 
basis of volume of business and/or such other factors as may he 
deemed equitable to be taken into consideration. 

3. A Fair Trade Practice Agency is hereby created which shall 
cooperate with the Administrator in the administration and enforce- 
ment of the Fair Trade Practice provisions of this Code. The Fair 
Trade Practice Agency shall be constituted as follows : 

Three (3) members shall be designated by the National Association 
of Glove Manufacturers. 

Three (3) members shall be designated by the Glove Importers' 
Association of the United States. 

One (1) or more members ma}' be appointed by the Administrator. 

4. In addition to the information required to be submitted to the 
Code* Authority, there shall be furnished to government agencies 
such statistical information as the Administrator may deem nec- 
essary for the purposes recited in Section 3 (a) of the Act. 

Article VII 

Importers of gloves shtill be bound by Article VI. Section 3 and 
Article VIII, but by no other provisions of this Code. They shall 
also be subject to such modifications of or additions to Article VIII 
of this Code as may hereafter be mutually agreed upon and ap- 
proved by the Administrator. 

Article VIII — Trade Practices 

The following practices constitute unfair methods of competition 
for members of the industry and are prohibited: 

1. Directly or indirectly to give or permit to be given, or otter 
to give, money or anything of value to agents, employees or repre- 
sentatives of customers or prospective customers, or to agents, em- 
ploj'ees or representatives of competitors' customers or prospective 
customers, without the knowledge of their emplo3'ers or principals, 



381 

as an inducemont to influence (heir employers or principals to pur- 
chase or contract to purchase from tiie makers of such gift or offer, 
or to influence with employers or principals to refrain from dealing 
or contracting to deal with competitors. 

2. False invoicing of any kind. 

3. Piracy of exclusiN'c designs, copyrights, trade iiumes, or tra«.le- 
marks of a competitor. 

4. Consignment of merchandise, except jjursuant to a Ixjiia fide 
written order or contract, or guaranteeing of retail turn-over. 

5. Selling below cost, as determined by such uniform accounting 
practice as maj'^ be established by the Code Authority with the 
approval of the Administrator. This provision shall not appl}^ to 
sales in good faith to dispose of distress merchandise or merchandise 
accumulated through error, which shall be branded as designated 
by the Fair Trade Practice Agency established in Article VI, Sec- 
tion 1 (e). The sale of such merchandise shall be reported to the 
Fair Trade Practice Agency. 

6. The exchange or credit of an}' returns unless for manufactur- 
ing imperfections, and in no event unless the returns are free from 
wear or soil. 

7. The acceptance of the return of merchandise other than an 
entire shipment except for manufacturing imperfections, and in no 
case later than five (5) days after the same has been received by 
the consignee. 

8. The making or causing or knowingly permitting to be made 
or published any false, materially inaccurate, or deceptive statement 
by way of advertisement or otherwise, whether concerning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, 
or preparation of any product of the industry, or the credit terms, 
values, policies, or services of any member of the industry, or other- 
wise, having the tendency or capacity to mislead or deceive cus- 
tomers or prospective customers. 

9. The acceptance of orders of less than the usual wholesale quan- 
tity at the usual wholesale price; the granting of free repair privi- 
leges. The term " usual wholesale quantity " means at least three 
pairs of a style and color. 

10. Marking with the words " table cut " any gloves which are not 
cut and fabricated according to the standards fixed by the Associa- 
tion; or to use the Glover's Guild Mark except on goods cut and 
fabricated in accordance Avith the Association rules, and no other 
designation of cutting shall be used except as approved by the 
Association. 

11. Maliciously inducing or attempting to induce the breach of 
an existing oral or written contract between a competitor and his 
customer or source of supply, or interfering with or obstructing the 
performance of any such contractual duties or services. 

12. The payment or allowance of rebates, refunds, commissions, 
credits, or unearned discounts, whether in the form of money or 
otherwise, or the extension to certain purchasers of special services 
or privileges not extended to all purchasers on like terms and 
conditions. 

13. The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 



382 

credit standiiio;, or by other false representations or by the false dis- 
paragement of the grade or quality of their goods. 

14. Nothing in this Code shall limit the effect of any adjudication 
by the Courts or holding b}' the Federal Trade Commission on com- 
plaint, finding, and order, that anj' practice or method is unfair, 
providing that such adjudication or holding is not inconsistent with 
any jDrovisions of the Act or of this Code. 

Article IX — Modification 

1. 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 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 President to 
cancel or modify his approval of this Code or any conditions imposed 
by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator and 
such notice and hearing as he shall specify, and to become effective 
on approval of the President. 

Article X — Monopolies, etc.- 

No provisions of this Code shall be so applied as to permit mo- 
nopolies or monopolistic i>ractices, or to eliminate, oppress, or dis- 
criminate against small enterprises. 

Article XI — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and serv- 
ices increase as rapidly as wages, it is recognized that price increases 
should be delayed and that, when made, the same should, so far as 
reasonably possible, be limited to actual increases in the seller's 
costs. 

Article XII — Contracts 

Where the cost of executing contracts for gloves entered into, 
prior to the effective date of this Code, is increased as a result of the 
operation of the National Industrial Recover}^ Act or of this Code, 
appropriate adjustment of such contracts should be made to reflect 
such increased cost; and further, where the performance of orders 
for gloves accepted prior to the effective date of this Code is de- 
layed or prolonged as a result of the operation of the provisions 
of this Code, appropriate additional time should be allowed for 
the completion of such orders. 

Article XIII — Effective Date 

This code shall become effective on the second Monday after its 
approval by the President. 

Approved Code No. 87. 
Re^astry No. 913/1/01. 

O 



Approved Code No. 88 
CODE OF FAIR COMPETITION 

FOR THE 

BUSINESS FURNITURE, STORAGE EQUIPMENT, 
AND FILING SUPPLY INDUSTRY 

As Approved on November 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 
Kecovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Business Furniture, Storage Equipment, 
and Filing Supply 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 rec- 
ommendations and findings with respect thereto, and the Admin- 
istrator having found that the 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 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 i^ hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

November 4, 1933. 

(383) 

291720 296-88 34 



November 2, 1933. 
The President, 

The White House. 

Sir: A proposed Federated Code of Fair Competition for the 
Business Furniture, Storage Equipment, and Filing Supply Industry 
was submitted to the Administrator on August 14, 1933, by 89% of 
the known members of the Industry. The hearing was conducted 
in Washington on September 21, 1933, and the Code was revised 
during the recess of this hearing and is submitted in its present form 
for approval. Every person who requested an appearance was prop- 
erly heard in accordance with statutory and regulatory requirements. 

The Industry's sales closely reflect any fluctuation in general busi- 
ness conditions. Its volume, therefore, in the past four years shows 
a drop of 75% with an attendant drop of only 53% in number of 
employees. The majority of the Industry immediately signed the 
President's Reemployment Agreement, with substitutions granted 
by the P.R.A. Policy Board, resulting in a net increase in em- 
ployment, as shown by the report of the Research and Planning 
Department of approximately 231^% over the average number of 
wage earners employed in the first half of the year 1933. The re- 
employment of labor, with attendant increases in yearly pay roll 
will be further accelerated by increase in the volume of business of 
the Industry, and has been materially increased since the date of 
the figures submitted to the Research and Planning Department. 

RESUME OF CODE 

Article I states the purpose of the Code. 

Article II accurately defines specific references made in the Code. 

Article III establishes a National Emergency Committee consist- 
ing of one representative of each division of the Industry elected by 
the various divisions, with additional (not exceeding three) repre- 
sentatives to be appointed by the President. 

Article IV provides machinery for obtaining statistics. 

Articles V, VI, and VII set forth the mandatory labor provisions, 
minimum age requirements, maximum hours, and minimum wage 
rates. The maximum hours are limited to 40 per week for factory 
and office employees, except that in any six weeks of any six months' 
period such employees shall be permitted to work 48 hours. The 
minimum wage rate, varying from $15.00 to $14.00 for office and 
salaried employees (except outside salesmen), is based on population 
differentials. For factory employees the minimum rate is 40^ per 
hour for male and female employees, except in one division, where 
the minimum rate for female employees is 35^ per hour. 

An overtime rate is provided for employees under certain specified 
conditions. 

(384) 



385 

Learners without previous experience may not constitute more 
than 5% of the total number of employees and their wages shall not 
be less than 80% of the specified minimums. The same provisions 
apply to disabled or infirm emijloyees. Higher paid employees are 
protected by an equitable readjustment clause. 

Article VIII provides for planning and development by the 
Industry. 

Article IX and Exhibit C (Divisional Supplemental Codes) set 
forth the Fair Trade Pra(;tices for the Industry. 

Article X sets forth the procedure to be followed in the event 
of a violation of the Code. 

Articles XI, XII, and XIII contain the mandatory provision 
respecting amendments, and provide for the submission of proposed 
amendments by members of the Industry as well as submission of 
further supplemental divisional Codes. 

Article XIV recommends limitation of price increases. 

Article XV states the effective date. 

Findings 

The Administrator finds: A. This Code complies in all respects 
with the i^ertinent phrases of Title I of the Act, including without 
limitation, subsection (a) of Section 7, and subsection (b) of Section 
10 thereof; B. The Committee which proposes the Code is truly rep- 
resentative of the Business Furniture, Storage Equipment, and Filing 
Supply Industry, and the By-laws of the Associations representating 
the divisions thereof provide no inequitable restrictions to member- 
ship; C. The Code is not designed to promote monopolies or to 
eliminate or oppress small enterprises and will not operate to dis- 
criminate 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 approved. 
Respectfully, 

Hugh S. Johnson, 

AdministrcDtor. 



CODE OF FAIR COMPETITION 

FOR THE 

BUSINESS FURNITURE, STORAGE EQUIPMENT AND 
FILING SUPPLY INDUSTRY 



Article I — Purpose 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are submitted as a Code of 
Fair Competition for the Business Furniture, Storage Equipment, 
and Filing Supply Industry, and upon approval by the President 
shall be the standard of fair competition for such industry and shall 
be binding upon every member thereof. 

Article II — Definitions 

Wherever used in this code and/or its divisional supplemental 
codes, the following definitions shall apply : 

The terms " President ", "Act ", and "Administrator " shall mean 
respectively the President of the United States, the National Indus- 
trial Recovery Act, and the Administrator of said Act. 

The term " Industry " means and includes the business of pro- 
ducing and selling in the United States any or all industry products. 

The terms " Member " and/or " Member of the Industry " means 
and includes any person, firm, association, or corporation engaged in 
the business of the Industry as defined herein. 

The term " Employee " means and includes anyone engaged in 
the industry in any capacity receiving compensation for his 
services, irrespective of the nature or method of payment of such 
compensation. 

The term " Employer " means and includes anyone by whom any 
such employee is compensated or employed. 

The term "Apprentice " means a person, usually a minor, who 
agrees to serve an employer for a certain stated period of time at 
predetermined wages for the period in order to learn the trade. 

The term " Learner " means an employee without previous me- 
chanical experience engaged to become competent on one or more 
machine operations but who shall not be so classified after ninety 
days' experience. 

The term " Industry Products " means and includes all products 
as hereinafter enumerated and defined under " Divisions ", and such 
other products as may be enumerated and defined in divisional sup- 
plemental codes which are or may be attached to and made a part 
of this code as provided in Art. XII hereof. 

The term " Divisions " means and includes the several parts of the 
Industry which are (or may be) established, and are (or may be) 
defined in the divisional supplemental codes. 

(386) 



387 

The Divisions hereby established arc as follows : 

Steel OflSce Furniture Division : 

Vertical filing cabinets. 

Horizontal sections and half-sections, and bookcases. 

Hi-llne and book-shelf units. 

Card index cases. 

Transfer units. 

Desks. 

Tables. 

Storage cabinets and wardrobes. 
Steel Shelving Division : 

Industrial and general-puniose steel shelving, miscellaneous fittings, 
attachments, and accessories. 
Steel Locker Division : 

Box Lockers. 

Single-tier Lockers. 

Double-tier Lockers. 

Two-person and Compartment Lockers. 

Miscellaneous Fittings as used in schools, clubs, gymnasiums, commer- 
cial and industrial establishments. 
Visible Filing Equipment Division : 

Cabinets, panels, pockets, cards, and other inserts, signalling and other 
devices for visible filing. 

Article III — Administration 

The Industry shall, with the approval of the President, estal3lish 
and empower a suitable agency herein referred to as the National 
Emergency Committee, to assist the Administrator in administering 
the provisions of the Act as set forth in this code. This Committee 
shall consist of one representative of each Division of the Industry, 
to be elected by the members of such Division, each member haying 
one vote. The Government may be represented on said Committee 
by — (from one to three) members, without vote, to be appointed 
by the President. Such governmental representatives will be ap- 
pointed for terms of from six months to one year. In case more 
than one such representative is appointed, the terms of appointment 
will be so arranged that they do not expire at the same time. 

Each trade or industrial association directly or indirectly partici- 
pating in the selection or activities of the National Emergency Com- 
mittee shall: (1) Impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles of 
association, bylaws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

In order that the National Emergency Committee or Divisional 
Code Committees shall at all times be truly representative of the 
industry and in other respects comply with the provisions of the Act, 
the Administrator may provide such hearings as he may deem proper ; 
and thereafter if he shall find that any such Committee is not truly 
representative or does not in other respects comply with the provi- 
sions of the Act, may require an appropriate modification in the 
method of selection of any such Committee. 

Subject to the approval of the Administrator, the Committee may 
approve the establishment of additional Divisions; shall delegate 
to all Divisions all necessary power and authority for the administra- 



388 

tion of this code within the Divisions; but shall reserve and retain 
the power and duty to enforce the provisions of this code. 

Subject to the approval of the Administrator, this Committee shall 
issue and enforce such rules, regulations, and interpretations, offer 
such amendments hereto, and designate such agents and delegate 
such authority to them as may be necessary to effectuate the pur- 
poses and to enforce the provisions of this code. 

Any action taken by the National Emergency Committee, or by 
any divisional code committee, or by any divisional planning and 
classification board may be reviewed by the Administrator, at his 
oj^tion, and modified or disapproved. 

Article IV — Code Reports and Fees 

Members shall make periodically to the National Emergency Com- 
mittee, through their respective Divisions, such reports on wages, 
hours of labor, conditions of employment, number of employees, pro- 
duction, shipments, sales, stocks, prices, and other data pertinent to 
the purposes of this code as may be required by the Administrator or 
the National Emergency Committee in assisting the Administrator 
in administering the provisions of the Act. 

In addition to the information required to be submitted to the 
National Emergency Committee, there shall be furnished to Govern- 
ment agencies such statistical information as the Administrator may 
deem necessary for the purposes recited in Section 3A of the Act. 

Except as otherwise provided in the Act, all statistical data filed 
with the National Emergency Committee in accordance with the 
provisions of this Article shall be confidential and the data of one 
member shall not be revealed to any other member, except that for 
the purpose of administering or enforcing the provisions of this 
code, the said Committee and the Administrator, by their duly 
authorized representatives, shall have access to any and all statistical 
data that may be furnished in accordance with the provisions of this 
code. 

Members shall be entitled to participate in and share the benefits of 
the activities of the National Emergency Committee and to partici- 
pate in the selection of the members thereof by assenting to and 
complying with the requirements of this code and sustaining their 
reasonable share of the expenses of its administration, and by per- 
mitting, for the purposes of the code, inspection of pertinent records 
by an impartial agency, to be approved by the National Emergency 
Committee and the Administrator. The reasonable share of the 
expenses of administration shall be determined by the National 
Emergency Committee on such basis as may be deemed equitable. 

Article V — Labor Provisions 

(a) Employes 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. 



389 

(b) No employee and no one seekinj^ employment shall be required 
as a condition of emi)loynu>nt to join any company union or to 
refrain from joining, oro;anizing, or assisting- a labor organization of 
his own choosing, 

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

Article VI — Hours of Labor and Minimum Wages 

The maximum hours of labor of employees of members, and the 
minimum wages which shall be paid by members shall be as shown in 
the attached Exhibit A, which is specifically made a part of this code. 

Article VII — Child Labor 

No person under 16 years of age shall be employed in the Industry 
nor anyone under 18 years of age at operations or occupations haz- 
ardous in nature or detrimental to health. The National Emergency 
Committee shall submit to the Administrator for approval a list of 
such hazardous occupations, within 60 days after the effective date of 
this code. 

An employer shall be deemed to have complied with this provi- 
sion, if he shall have on file a certificate duly issued by the authority 
empowered to issue employment certificates under the state law 
showing that the minor is of the required age. 

Article VIII — Planning and De\'elopment 

In order that economies in manufacture and distribution, stand- 
ardization, and simplification of industry products, and more efficient 
methods of conducting the business of the Industry may be devel- 
oped, the National Emergency Committee shall cause to be estab- 
lished in each Division a Planning and Classification Board, wdiich 
shall from time to time make studies and recommendations to their 
respective Divisions on any phase of the business of the Industry, 
including stabilization and regularization of employment, included 
in said Division. If approved by said Division and referred to the 
National Emergency Committee, the Committee shall make, modify, 
or rescind rules and regulations, as may be necessary and proper to 
effectuate the purposes of such recommendations. 

Nothing herein contained shall be applied to restrict development 
or advancement of the Industry, or to prevent any member from 
manufacturing any industry product, or perfecting developments, 
or making changes or additions. 

Article IX — Unfair Practices 

For all purposes of this code the practices described in Exhibit B 
hereto annexed, and all other practices which shall be declared to be 
unfair practices by any amendment to this code, duly approved by 
the President, are hereby declared to be unfair methods of competi- 
tion in commerce, and knowingly using or employing any of them 
by any member of the Industry directly or indirectly through any 

29172° 296-88 34 2 



390 

officer, employee, agent, or representative shall be deemed to be a 
violation of this code. 

Article X — Violation 

Any violation by any member of any provision of this code, or of 
any provision of any divisional supplemental code to which he is 
subject, shall constitute a violation of the code by such member. 
The offender shall be subject to the penalties imposed by the Act. 

A procedure for investigation of violations shall be adopted by 
each Division, subject to the approval of the National Emergency 
Committee. 

Article XI — Cancellation or Modification 

This code and all the provisions thereof are expressly made subject 
to the right of the President, in accordance with the provisions 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 
specificall3^ but without limitation, 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. 

This code is intended to be a basic code, and study of the trade 
practices of the Industry will be continued by the National Emer- 
gency Committee with the duty of submitting from time to time 
recommendations to the Administrator respecting amendments, re- 
visions, and/or supplementary provisions to this code, which, upon 
his approval after such hearing as he may prescribe, shall become 
a part of this basic code, and shall have full force and effect as 
provisions hereof. 

Such recommendations shall first be approved by the members of 
the Division affected thereby, and, if so approved, must be submitted 
to the Administrator. 

Article XII — Supplementary Codes 

Supplemental code provisions affecting or pertaining to Divisions 
of the Industry are contained in Exhibit C attached hereto, which is 
specifically made a part of this code. Additional supplements affect- 
ing or pertaining to Divisions may be filed Avith the Committee and 
if not inconsistent with the provisions of this code may be recom- 
mended by it to the Administrator. When approved by the Admin- 
istrator such supplements shall have the same force and effect as any 
other provisions of the code. 

Article XIII — Monopolies 

(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. 



391 

Article XIV — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and 
services increase as rapidly as wages, it Ls recognized that price 
increases should be delayed and that, when made, tlie same should, 
so far as reasonably possible, be limited to actual increases in the 
seller's costs. 

Article XV — Efficctive Date 

This code and amendments thereto shall be in effect beginning ten 
days after their approval by the President. 

Approved Code No. S8. 
Ilegistry No. 1137/1/01 



EXHIBIT A 

Section 1. On and after the effective date, the minimum wages of all em- 
ployes (except as hereinafter provided) of any member shall be at the 
following hourly rates : 

To male factory employes, 40 cents. 

To female factory employes, 40 cents for Steel Office Furniture, Steel Shelving, 
and Steel Locker Divisions ; 350 for Visible Filing Equipment Division. 

The above minimum wages are not to be considered as a discrimination by 
reason of sex. Where women do substantially the same work or perform 
substantially the same duties as men, they shall receive the same wages as 
the men who do such work or perform such duties ; and when they displace 
men they shall receive the same wages as the men they displace. 

Nothing in this Section shall apply to or affect any employe apprenticed 
to any employer by an indenture made in pursuance of the laws of any state 
of the United States, or by a written contract under any apprentice system 
established and maintained by any employer, provided such agreements are, 
and each additional agreement as made is, filed with the National Emergency 
Committee, and provided that this exception shall apply to such employes 
only during the period that they are receiving less than the minimum rate. 

Learners (other than apprentices) may be paid not less than 80 percent of 
the minimum wage paid for the same class of work they may be learning, 
up to the point where the net amount received by a learner would be in excess 
of 40 cents per hour, and provided that the total number of learners who shall 
receive les'S than the minimum wage shall at no time exceed more than five 
percent of the total number employed by such employer. 

Nothing in this Section shall npply to any employe who by reason of a 
disability and/or infirmity is competent only for light employment ; provided, 
that the wages paid to such employes shall not be less than 80 percent of the 
minimum rates of pay specified in this code ; provided further, that the total 
number of such employes shall not constitute more than five percent of the 
total number of factory employes subject to the provisions of this code in 
any one plant ; and provided, that a list of such employes shall be filed with 
the National Emergency Committee. 

The wage differentials for all operations being paid more than the minimum 
shall be equitably readjusted by all employers who have not made such adjust- 
ments since June 15, 1933, and in no case shall they be decreased. Each 
member of the industry shall report all such readjustments to the National 
Emergency Committee within SO days of the effective date of the code. 

Sec. 2. It is agreed that Section 1 establishes a guaranteed minimum rate of 
pay for employes compensated on a piecework or any other basis. 

Sec. 3. Factory employes (excluding service employes engaged in outside 
work away from the manufacturing plant, department foremen, repair crews, 
firemen, engineers, and watchmen) may work not more than 40 hours in any 
one week, nor more than eight hours in any one day ; except that to meet peak 
demands such employes may work not more than 48 hours in any one week 
and not more than 10 hours in any one day for not more than six weeks in any 
six months' period. An employe working on Sundays and legal holidays or 
beyond nine consecutive hours per day, plus an interval of not more than one 
hour, .shall be paid not less than one and one half times his normal rate. 

The maximum hours fixed in this section shall not apply to any employe on 
emergency maintenance or emergency repair work involving break-downs or 
protection of life or property, but in any such special case at least one and one 
half times his normal rate shall be paid for hours worked in excess of the 
maximum hours herein provided. 

Firemen and engineers are to have 10 percent tolerance above the maximum 
hours herein specified. 

Watchnu n may work 84 hours in two weeks on alternate shifts of 36 and 48 
hours per week. 

(392) 



393 

Sec, 4. OflBce and salaried employes (except outside salesmen and those 
employed in a managerial or executive cai^acity and earning more than $35.00 
a week) covered hereby may work not more than 40 hours in any one week, 
except that to meet peak demands .such employes may work not more than 
48 hours in any one week for not more than six weeks in any six months* 
period. 

The minimum wages of office and salaried employes covered hereby shall not 
be less than the following weekly rates : 

In cities having 5<X),0O() population or over, or in the immediate trade area 
of such city, at the rate of $1,5.00 per week. 

In cities having less than J>00.0€0 and more than 2.50,000 population, or in the 
immediate trade area of such city, at the rate of .'fl4..50 per week. 

In cities having less than 250,000 population, or in the immediate trade area 
of such city, at the rate of $14.00 per week. 

Sec. 5. Within each state this code shall not sui>ersede any law of such state 
imposing more stringent requirements as to maximum hours of labor or mini- 
mum wages than are imposed under the provisions of this code. 



EXHIBIT B 

List of Unfaib Peactices 

A. KE^BATES 

(a) The secret i)ayment or allowance to purchasers of industry products, 
of rebates, commissions, bonuses, refunds, credits, unearned discount, or sub- 
sidies of any kind, whether in the form of money, services, or otherwise, or 
the giving of premiums, or extending to certain purchasers special service or 
privileges not extended to all pui'chasers under like terms and conditions. 

(b) The enticing or attempting to entice away the agents or dealers of any 
competing member of the Industry by offering goods on consignment, accepting 
long-term notes in payment for goods, postdating invoices, or offering special 
discounts on carload lots, 

B. BRIBERY 

Directly or indirectly to give or permit to be given or offer to give money or 
anything of value to agents, employes, or representatives of customers or 
prospective customers, or to agents, employes, or representatives of competitors' 
customers or prospective customers, as an inducement to influence their 
employers or principals to purchase or contract to purchase industry products 
from the maker of such gift or offer, or to influence such employers or prin- 
cipals to refrain from dealing or contracting to deal with competitors, or to 
allow to salesmen or other employes or agents expense money for any other 
purpose than legitimate expenses of travel and subsistence, or to permit any 
funds to be disbursed in any unlawful way to influence business. 

C. BREACH or CONTRACT 

Any wilful attempt to induce a breach of any existing bona fide contract or 
order for a definite amount of industry product or to prevent the performance 
of any contractual duty or service under any bona fide contract or order for 
the sale of industry products. 

D. ENTICEMENT OF EMPLOYES 

The enticement of an employe of a competitor from his emplojanent with 
the puiTiose or effect of injuring or embarrassing such competitor in his busi- 
ness. Nothing herein shall prevent any employe from offering his services 
to a competitor, nor prevent any member from employing an employe of another 
member where the initiative in such change of employment comes from the 
employe. 

E. MISREPRESENTATION 

(a) The making, causing or permitting to be made or published, of any 
false, untrue, or deceptive statement by way of advertisement or otherwise; or 

(b) The marking or branding of products for the purpose or with the effect 
of misleading or deceiving purchasers ; or 

(c) The sale or offering for sale of any product with the intent to deceive, or 
the effect of deceiving, the purchaser ; 

by false or misleading statements, or by concealment of the facts concerning 
grade, quality, character, nature, origin, manufacture, or performance of any 
item of industi-y products. 

(394) 



395 



p. DEFAMATION OF COMPETITOB 



The defamation of a competitor by words or acts wliich disparage his business 
integrity, his ability to perform his contracts, liis credit standing, or the grade, 
quality, or reliability of his goods. 



G. GUAIIANTEB AGAINST DECLINE 

The sale or offering for sale of any industry products under any form of 
guarantee to the purchaser or proposed purcliaser against either an advance or 
decline in the price of such industry products. 

H. FALSE BEC0KI> 

(a) Withholding from or inserting in an invoice or contract statements wliich 
make the invoice or contract a false record, wliolly or in part, of the transaction 
represented on the face thereof. 

(b) Postdating any contract or invoice, or predating any contract or invoice 
except to conform to a bona fide agreement for the purchase or sale of industry 
products on the predate. 

I. CONCEALED BIDDING 

The inclusion of prices, discounts, or terms on any items of industry product 
with prices, discounts, or terms of any other product or products, or any means 
used to quote or contract to sell any industry products in any manner which 
prevents any interested person from obtaining accurate information as to the 
actual prices charged for such industry products separately. 



EXHIBIT O 
Divisional SupplementaI/ Code fob the Steel Office Furniture Industry 

ARTICLE I — purpose 

The purpose of this divisional supplemental code is to supplement the basic 
code of the Business Furniture, Storage Equipment, and Filing Supply Industry, 
to make it specifically applicable to the Steel Office Furniture Industry, a 
division thereof. 

article II INDUSTRY 

This Industry shall be defined as including anyone engaged in the manu- 
facture and sale of any item of steel office furniture (hereinafter referred to 
as "industry products") as defined in Art. II of the basic code under " Steel 
Office Furniture Division ", either as a stock item or offered as a substitute for 
or in competition with such item. 

ARTICLE III — CODE AUTHORITY 

(a) A Code Committee, consisting of one nonvoting representative of the 
Administrator, if the Administrator so elects, and seven members of the 
Industry shall constitute the code authority of said Industry. Each class of 
member as defined below shall be represented by at least one member on the 
Code Committee. 

(b) Each member of the Industry shall within thirty days after the effective 
date of this code certify to the Secretary of the National Emergency Com- 
mittee under oath the total net wholesale value of domestic shipments of all 
industry products for each month of the calendar year next preceding the 
above date, and for each succeeding calendar month up to the date of such 
certification, and shall thereafter certify such values monthly within forty-five 
days after expiration of each succeeding calendar month. 

(c) In the election of the Code Committee and in all cases where voting 
power is exercised by the members of the Industry, the members shall be 
divided into five classes, based on volume of production as above deter= 
mined, and such voting power shall be determined as follows : 

One fifth of the highest value of shipments, as defined in par. (b), reported 
by any member for the next preceding calendar year shall be the base value. 
The number of votes to which each member is entitled shall be the quotient 
obtained by using this base value as a divisor and the value of shipments 
reported by said member for the same year as a dividend. For tlie purpose 
of this computation fractions shall be considered as whole numbers. 

ARTICLE IV — PLANNING AND CLASSIFICATION 

In order to effectuate the purpose of Article VIII of the basic code, a list 
of all items of industry products now being offered as stock items by any 
member shall be submitted, and specifications and samples shall be made avail- 
able within thirty days after approval of this code to the Planning and Classi- 
fication Board of the Industry for assignment thereof to its proper classifica- 
tion as referred to in Schedule A. No stock item not included in the list 
originally submitted by him shall be sold or offered for sale by any member 
until after classification by the Planning and Classification Board, as above 
provided, and approval of said classification by the Code Committee, nor until 
after all requirements for publication contained in Article VI hereof have been 
completely fulfilled. All action under this section shall be taken within 30 
days after submission by the member. 

(396) 



397 

ARTICLE V — DISCRmiNATION 

(a) No member shall make any sale or contract of sale, directly or indirectly, 
by any means whatever, of any industry products at a price or on terms and 
conditions more favorable to one i)urchaser than to another, whetiier such 
purchasers shall be privat(> individuals, corporations, or firms, or Federal, 
Stiite, Municipal, or other public bodies; provided that this shall not prevent 
price dillerences necessarily result iii.L; from dilTcrences in the model, grade, 
quantity, or point of delivery of the products sold. 

(b) No member shall make any purchase of or allowance for used industry 
products in connection with a sale of new industry products or as an inde- 
pendent cash transiiction, directly or indirectly, by any means whatever, at a 
price or on terms and conditions more favorable to one seller than to another. 

AUTICLE VI PKICE PXMU.ICATION 

(a) Each member shall, within ten days after the effective date of tliis 
code, publish and continue to publish, as changes are made : 

1. List prices covering every item of industry products which such member 
offers for sale as stock merchandise, of current standard lines, and list prices 
and quantities of destandardized or obsolete lines; 

2. Discounts and terms allowed, as provided in Schedule A hereto attached 
and made a part hereof, to the classes of customers defined therein ; 

in such manner that interested members of the trade and buying public may at 
all times obtain accurate information as to the prices charged by such member 
for his industry products. Failure to publish or to continue to publish, as 
changes are made, any or all of the aforesaid information, or tlie publishing 
of false or fictitious discounts, prices, or terms for any item of industry 
products is an unfair method of competition. 

(b) No member of the Industry shall designate any current line as destand- 
ardized or obsolete unless in fact such line has been discontinued. 

(c) Each member shall immediately publish and continue to publish, as 
changes are made, the prices paid or allowances made for used industry prod- 
ucts of the various makes and models, in such manner that interested members 
of the trade and buying public may at all times obtain accurate information as 
to the real prices charged by such member for its industry products. Failure 
to publish, or to continue to publish, as changes are made, any or all of the 
aforesaid information, or the publishing of any false or fictitious price or 
allowance for any make or model of such used industry products, is an unfair 
method of competition. 

(d) The discounts, terms, expiration dates, and customers' names of all 
buying agreements, oral or written, on any other than a one-order-oue-delivery 
basis, in force at the effective date of this code, and all such new or renewed 
iigreements, shall be reported to the Code Committee at the time they become 
effective. 

The discounts and terms of all such new agreements, and all renew*als or 
extensions of such existing agreements, shall be as provided in Schedule A. 

(e) The above requirements for publication shall not be deemed fulfilled until 
ten days after a sufficient number of certified copies of the matter to be pub- 
lished shall have been received at the office of the Code Committee, except that 
the lists filed within ten days after the effective date of this code shall take 
effect on the date of filing thereof. 

(f) No member shall sell any industry product contrary to his published 
prices, discounts, or terms of sale ; and since a substantial majority of the 
industry's products are sold direct by the manufacturer to the consumer, and 
since the purpose and elTect of this Article would be otherwise defeated, it shall 
be an unfair method of competition for any member to distribute to the user 
industry products indirectly through an agent, dealer, broker, or otherwise, 
contrary to his published prices, discounts, or terms of sale. 

ARnCLE VII SELLING BELOW COST 

(a) The pricing and/or selling of any item of industry products below mem- 
ber's cost to the ultimate consumer as determined by the cost-accounting 
methods set up by the Code Committee and subject to approval by the Adminis- 
trator, in the quantities, under the conditions, and at the points of delivery 
involved, is an unfair method of competition. 



398 

(b) The Code Committee shall have power on its own initiative, or on the 
complaint of any member, to cause an Investigation of any price, discount, or 
terms of sale for any item of industry product shown in any list of industry 
products filed with it by any member, and for the purpose of the investigation 
thereof to require such member to furnish such information concerning cost 
as defined in Section (a) of this article as the Committee shall deem necessary 
or proper for such purpose. 

If after such investigation, said Committee shall determine that such price, 
discount, or terms of sale is unfair as being contrary to Section (a) of this 
Article, and if such member within ten days after notice to it of such detei-mina- 
tion by the Code Committee shall not file a new list showing the price, dis- 
count, or terms of sale in accordance with said Section (a) (which shall be- 
come effective immediately on the filing of such list), the Code Committee 
shall report the results of its investigation to the proper authority or authori- 
ties for action. 

ARTICLE VIII EIS;TR.\.S AND DEDUCTIONS 

The Code Committee, on the basis of the direct cost thereof (direct cost 
as used in this article being defined as the cost of labor, material, selling, and 
distribution, plus 10%) may establish the minimum additions to and maximum 
deductions from the base prices of the various lines of industry products, 
which maximum deductions and minimum additions members shall use in 
determining the list prices of variations from the base products. 

ARTICLE IX — SPECIALS 

No item of industry products which is not covered by the published list 
prices of the manufacturer thereof shall be sold or offered for sale at net 
prices, discounts, or terms more favorable to the purchaser than the most 
favorable published discounts, terms, or net prices applying to such item. 

ARTICLE X MODIFICATION OR CANCELLATION OF CODE 

This code and all the provisions thereof are expressly made subject to the 
right of the President, in accordance with the provisions of subsection (b) 
of Section X of the National Industrial Recovei-y 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, 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. 



SCHEDULE A 

Steel Office Furniture Division — Divisional Supplemental Code 
industry base products 

The Industry ba,se products are hereby listed, graded, and classified, aa 
follows : 

Four-drawer vertical letter file, olive green, standard grade. 

Five-drawer vertical letter file, olive green, standard grade. 

Three-drawer vertical letter file, olive green, standard grade. 

Four-drawer vertical letter file, olive green, commercial grade. 

Four-drawer vertical letter file, olive green, utility grade, suspension. 

Four-drawer vertical letter file, olive green, utility grade, non suspension. 

Two-drawer horizontal sectional full width letter file, standard grade. 

One-drawer horizontal sectional half width letter file, standard grade. 

One-drawer 3"x5" card cabinet standard grade. 

One-drawer 3"x5" card cabinet commercial grade. 

60"x34" flat top desk, olive green, standard grade. 

60"x34" table, olive green, standard grade. 

60"x34" flat-top desk, olive green, junior executive grade. 

60"x34" table, olive green, junior executive grade. 

72"x36"xl8" storage cabinet, double door, olive green, Grade A. 

72"x36"xl8" storage cabinet, double door, olive green, Grade B. 

One-drawer, sectional letter size transfer case, olive green. 

Hi-line section — 24-drawer document file, olive green. : , 

Hi-line section — 84"x36"x9" six-shelf bookshelf unit without finished ends, 
olive green. 

Revision of this list may be made from time to time by the Code Committee, 
or by the Administrator in his discretion. 

definition of CUSTOMERS 

Exclusive Agents or Dealers. — An Exclusive Agent or Dealer is a retailer 
(individual, firm, or corporation) with whom a member of the Industry has 
a written agreement giving the agent or dealer sole selling rights of entire 
line in defined territory and giving the member of the Industry exclusive 
sales representation. 

Nonexclusive Agents or Dealers. — A nonexclusive Agent or Dealer is a 
retailer (individual, firm, or corporation) who maintains a place of busines.s 
and carries stock. 

Brokers. — A Broker is a retailer (individual, firm, or corporation) other 
than above defined, who purchases industry products for resale. 

Retail huyers.—A retail buyer is a purchaser of definite quantities of indus- 
try products when purchased in one order for one delivery, or on an oral 
or written buying agreement. 

Discounts and Terms of Sale. — The discounts as provided in Article VI 
allowed to each of the above-defined classes of customers shall be applied to all 
list prices published under the provisions of said Article and shall truly repre- 
sent variance in cost of distribution to the ultimate consumer as determined by 
the code committee in accordance with the provisions of Article VII. 

Terms of sale for all industry products shall be as follows : 

Wholesale Sales. — All classes of purchasers — 2 percent 10th prox., net 30th 
prox. 

Retail Sales. — No discount for early payment. 

(399) 



EXHIBIT 

Division AL Supplemental Code foe the Visible Filing Equipment Industey 

ARTICLE I — purpose 

The purpose of this divisional supplemental code is to supplement the basic 
code of the Business Furniture, Storage Equipment, and Filing Supply Industry, 
to make it specifically applicable to the Visible Filing Equipment Industry, a 
division thereof. 

ARTICLE II — INDUSTRY 

This Industry shall be defined as including any one engaged in the manufac- 
ture and sale of any item of visible filing equipment (hereinafter referred to as 
industry products) as defined in Art. II of the basic code under "Visible Filing 
Equipment Division ", either as a stock item or offered as a substitute for or in 
competition with such item. 

ARTICLE III CODE AUTHORITY 

(a) A Code Committee consisting of one non-voting representative of the 
Administrator if the Administrator so elects, and three members of the Indus- 
try shall constitute the code authority of said Industry. 

(b) Each member of the Industry shall within thirty days after the effective 
date of this code certify to tlie Secretary of the National Emergency Committee 
under oath the total net wholesale value of domestic shipments of all industry 
products for each month of the calendar year next preceding the above date, 
and for each succeeding calendar month up to the date of such certification, 
and shall thereafter certify such values monthly within forty-five days after 
expiration of each succeeding calendar month. 

(c) In the election of the Code Committee and in all cases where voting 
power is exercised by the members of the Industry, the members shall be divided 
into four classes, based on volume of production as above defined, and such 
voting power shall be determined as follows: 

One-fourth of the highest value of shipments, as defined in par. (b), reported 
by any member for the next preceding calendar year shall be the base value. 
The number of votes to which each member is entitled shall be the quotient 
obtained by using this base value as a divisor and the value of shipments 
reported by said member for the same year as a dividend. For the purpose of 
this computation fractions shall be considered as whole numbers. 

ARTICLE IV — PLANNING AND CLASSIFICATION 

In order to effectuate the purpose of Article VIII of the basic code, a list of 
all items of industry products now being offered as stock items by any member 
of the Industry shall be made available, within thirty days after approval of 
this code, to the Planning and Classification Board of the Industry for assign- 
ment thereof to its proper classification as referred to in Schedule A. No stock 
item not included in the list originally submitted by him shall be sold or offered 
for sale by any member until after classification by the Planning and Classifica- 
tion Board, as above provided, and approval of said classification by the Code 
Committee, nor until after all requirements for publication contained in Article 
VI hereof have been completely fulfilled. All action under this section shall be 
taken within thirty days after submission by the member. 

ARTICLE V DISCRIMINATION 

(a) No member shall make any sale or contract of sale, directly or indirectly, 
by any means whatever, of any industry products at a price or on terms and 
conditions more favorable to one purchaser than to another, whether such pur- 

(400) 



401 

chasers sliall be private individuals, corpDrations, or firms, or Federal, State, 
Municipal, or other public bodies; provided that this shall not prevent price 
differences necessarily resulting from differences in the model, grade, quantity, 
or point of delivery of the products sold. 

(b) No member of the Industry sliall make any purchase of or allowance for 
used industry products in connection with a sale of new industry products or 
as an independent ciish transaction, directly or indirectly, by any means what- 
ever, at a price or on terms and conditions more favorable to one seller than to 
anotlier. 

AUTICl.K VI PUICK PVKI.ICATION 

(a) Each member of the Industry shall, withn ten days after the effective 
date of this code, publish and continue to publish, as changes are made : 

1. List prices covering every item of industry products which such member 
offers for sale as stociv merchandise, of current standard lines, and list prices 
and quantities of rebuilt, destaudardized, or obsolete lines ; 

2. Discounts and terms allowed, as provided in Schedule A hereto attached 
and made a part hereof, to the classes of customers defined tliei'ein ; 

in such manner that interested members of the trade and buying public may at 
all times obtain accurate information as to the prices charged l)y such member 
of the Industry for its industry products. Failure to publish or to continue to 
publish, as changes are made, any or all of tlie aforesaid iuforraalion, or the 
publishaig of false or fictitious discounts, prices, or terms, for any item of 
industry products, is an unfair method of competition. 

(b) No member of the Industry shall designate any curi-ent line as de- 
standardized or obsolete unless in fact such line has been discontinued. 

(c) Each member of the Industry shall immediately publish and continue 
to publish as changes are made, the maximum prices paid or allowances made 
for used industry products of the various makes and models, when such allow- 
ances apply against the purchase of new industry products, in such manner 
that interested members of the trade and buying public may at all times obtain 
accurate information as to the real prices charged by such member of the 
Industry for its industry products. Failure to publish, or to continue to pub- 
lish, as changes are made, any or all of the aforesaid information, or the 
publishing of any false or fictitious price or allowance for any make or model 
of such used industry products, is an unfair method of competition. 

(d) The discounts, terms, expiration dates and customers' names of all 
buying agreements, oral or written, on any other than a one-order-one-delivery 
basis, in force at the effective date of this code, and all such new or renewed 
agreements, shall be reported to the Code Committee at the time they become 
effective. 

The discounts and terms of all such new agreements, and all renewals or 
extensions of such existing agreements, shall be as provided in Schedule A. 

(e) The above requirements for publication shall not be deemed fulfilled 
until ten days after a sufficient number of certified copies of the matter to 
be published shall have been received at the office of the Code Committee, 
except that the lists filed within ten days after the effective dale of this code 
shall take effect on the date of filing thereof. 

(f) No member shall sell any industry product contrary to his published 
prices, discounts, or terms of sale ; and since a substantial majority of the 
industry's products are sold direct by the manufacturer to the consumer, and 
since the purpose and effect of this Article would be otherwise defeated, it 
shall be an unfair method of competition for any member to distribute to the 
user industry products indirectly through an agent, dealer, broker, or otherwise, 
contrary to his published prices, discounts, or terms of sale. 

ARTICT-E VII — SEULING BELOW COST 

(a) The pricing and/or selling of any item of industry products below 
member's cost to the ultimate consumer as determined by the cost accounting 
methods set up by the Code Committee and subject to approval by the Admin- 
istrator, in the quantities, under the conditions, and at the points of delivery 
involved, is an unfair method of competition. 

(b) The Code Committee shall have power on its own initiative, or on the 
complaint of any member, to cause an investigation of any price, discount, or 
terms of sale for any item of industry product shown in any list of industry 
products filed with it by any member, and for the purpose of the investigation 



402 

thereof to require such member to furnish such Information concerning cost 
as defined in Section (a) of this article as the Committee shall deem necessary 
or proper for such purpose. 

If after such investigation, said Committee shall determine that such price, 
discount, or terras of sale is unfair as being contrary to Section (a) of this 
Article, and if such member within ten days after notice to it of such deter- 
mination by the Code Committee shall not file a new list showing the price, 
discount, or terms of sale in accordance with said Section (a) (which shall 
become effective immediately on the filing of such list), the Code Committee 
shall report the results of its investigation to the proper authority or authorities 
for action. 

ARTICLE VIII SPECIALS 

No item of industry products which is not covered by the published list 
prices of the manufacturer thereof shall be sold or offered for sale at net 
prices, discounts, or terms more favorable to the purchaser than the most 
favorable published discounts, terms, or net prices applying to such item. 

ARTICLE IX — MODIFICATION OR CANCELLATION OF CODE 

This code and all the provisions thereof are expressly made subject to the 
right of the President, in accordance with the provisions of subsection (b) of 
Section X of the National Industrial Recovery Act from time to time to cancel 
or modify any order, approval, license, i-ule, or regulation issued under Title I 
of said Act ; and specifically, 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. 



SCHEDULE A 

Visible Filing Equipment Division, 

Divisional Supplemental Cooe 

industby peoducts 

The industry products are hereby chissified as follows: 

I. TRANSPARENT TIP POCKET EQUIPMENT 

Consisting of Card and Insert Holders having titles visible through trans- 
parent tips and housed in drawers in cabinets, in drawers and panels in trays, 
in double and single faced, fixed position and swinging frames, and in folding 
panels and books, with holding and supporting devices for these housings. 

II. VISIBLE CARD EQUIPMENT (NON-TRANSPARENT TIP POCKET TYPE) 

Consisting of card hangers and/or supports providing visible index spaces on 
inserts and cards affixed to them and housed in drawers in cabinets, in panels 
or drawers in trays, in double and single faced, fixed position and swinging 
frames, and in folding panels and books, with holding and supporting devices 
for these housings. 

III. VISIBLE STRIP EQUIPMENT 

Consisthig of multiple-index strips with or without transparent tubes lioused 
visibly in drawers in cabinets, in panels or drawers in trays, in double and 
single faced, fixed position and swinging frames, and in folding panels and 
books with holding and supporting devices for these housings. 

IV. SIGNALING DEVICES FOR USE IN EQUIPMENT AS DESCRIBED IN I, II, III 

Revision of this list may be made from time to time by the Code Committee, 
or by the Administrator in his discretion. 

DEFINITION OF CUSTOMEafS 

Exclusive Agents or Dealers. — An Exclusive Agent or Dealer is a retailer 
(individual, firm, or corporation) with whom a member of the Industry has 
a written agreement giving the agent or dealer sole selling rights of entire line 
In defined territory and giving the member of the Industry exclusive sales 
representation. 

Nonexclusive Agents or Dealers. — A nonexclusive agent or dealer is a re- 
tailer (individual, firm or corporation) who maintains a place of business and 
carries stock. 

Brokers. — A broker is a retailer (individual, firm, or corporation) other than 
above defined who purchases industry products for resale. 

Jobbers. — A jobber is an individual, firm, or corporation who maintains an 
adequate wholesale stock of merchandise and who does not sell at retail. 

Retail Biujcrs. — A retail buyer is a purchaser of definite quantities of indus- 
try products when purchased in one order for one delivery or on an oral or 
written contract or buying agreement. 

DISCOUNTS AND TERMS OF SALE 

The discounts as provided in Article VI allowed to each of the above-defined 
classes of customers shall be applied to all list prices published under the pro- 
visions of said Article, and shall truly represent variance in cost of distribu- 
tion to the ultimate consumer as determineil by the Code Committee in accord- 
ance with the provisions of Article VII. 

Terms of sale for all industry products shall be as follows : 

Wholesale Sales. — All classes of purchasers — 2 percent 10th prox, Net SOth 
prox. 

Retail Sales. — No discount for early payment. 

(403) 



EXHIBIT O 

Drv'isioNAL Supplemental Code for the Steel Locker Industry 

ARTICLE I — ^PURPOSE 

The purpose of this divisional supplemental code is to supplement the basic 
code of the Business Furniture, Storage Equipment, and Filing Supply Industry, 
to make it specifically applicable to the Steel Locker Industry, a division thereof. 

ARTICLE II — INDUSTRY 

This Industry shall be defined as including any one engaged in the manu- 
facture and sale of any item of steel lockers (hereinafter referred to as industry 
products) as defined in Article II of the basic code under " Steel Locker Divi- 
sion ", either as a standard list item or offered as a substitute for or in 
competition with such item. 

ARTICLE III CODE AUTHORITY 

(a) A Code Committee, consisting of one nonvoting representative of the 
Administrator if the Administrator so elects, and five members of the Industry 
shall constitute the code authority of said Industry. 

(b) Each member of the Industry shall within thirty days after the effective 
date of this code certify to the Secretary of the National Emergency Committee 
under oath the total net value of domestic shipments f .o.b. factory of all industry 
products for each month of the calendar year next preceding the above date, 
and for each succeeding calendar month up to the date of such certification, and 
shall thereafter certify such values monthly within twenty days after expiration 
of each succeeding calendar month. 

(c) In the election of the Code Committee and in all cases where voting power 
is exercised by the members of the Industry, the members shall be divided into 
five classes, based on volume of production as above determined, and such A'oting 
power shall be determined as follows : 

One fifth of the highest value of shipments, as defined in paragraph (b). 
reported by any member for the next preceding calendar year shall he the base 
value. The number of votes to which each member is entitled shall be the 
quotient obtained by using this base value as a divisor and the value of ship- 
ments reported by said member for the same year as a dividend. For the 
purpose of this computation fractions shall be considered as whole numbers. 

ARTICLE IV PLANNING AND CLASSIFICATION 

(a) In the event that any member of the Industry desires to manufacture 
and offer for sale any item not included in the original lists submitted by him 
as provided in Article VI, Section c, he shall make available specifications and 
samples of such item to the Planning and Classification Board of the Industry 
for the proper listing of such item as a standard list item subject to the 
approval of the Code Committee. No standard list item not included in the list 
originally submitted by him shall be sold or offered for sale by any member 
until after classification by the Planning and Classification Board, as above 
provided, and approval of said classification by the Code Committee, nor until 
after all requirements for publication contained in Article VI hereof have been 
completely fulfilled. All action under this section shall be taken within 30 
days after submission by the member. 

ARTICLE V — DISCRIMINATION 

(a) No member shall make any sale or contract of sale, directly or indirectly, 
by any means whatever, of any industry products at a price or on terms and 

(404) 



405 

conditions more favorable to one purcliaser than to another, whetlier such piir- 
chnsers shall be private inflividuuls, coi-poratlonK, or firms, or Federal, State, 
IMiinicLpal, or other public bodies; provided that this shall not prevent price 
(lilTercnccs neecssarily resulting irom differences In the model, grade, cpiaiitity, 
or point of delivery of the products sold. 

(b) No member of the Industry shall make any purchase of <»r allowance 
for used industry products in connection with a sale of new industry i)roducts 
or as an independent cash transaction, directly or indirectly, by any moans 
whatever, at a price or on terms and conditions more favorable to one seller 
than to another. 

AUTICLE VI — PRICE PUBLICATION 

(a) Each member of the Industry shall within ten days after the effective 
date of this code, publish and continue to publish, as changes are made : 

1. List prices covering,' every item of industry products which such member 
offers for sale as standard list items, and list prices and quantities of destand- 
ardized or obsolete items ; 

2. Deductions or extras as determined in accordance with Article VIII hereof. 

3. Quantity discounts from list prices and terms of sale allowed to the 
purchaser, as provided in Schedule A hereto attached and made a part hereof; 
in such manner that interested members of the trade and the buying pul)lic may 
at all times obtain accurate information as to the prices charged by such 
member of the Industry for its industry products. Failure to publish or to 
continue to publish, as changes are made, any or all of the aforesaid informa- 
tion, or tiie publishing of false or fictitious prices, discounts, or terms, for any 
item of industry products, is an unfair method of competition. 

(b) No member of the Industry shall designate any current line as de- 
standardized or obsolete unless in fact such line has been discontinued. 

(c) The above requirements for publication shall not be deemed fulfilled 
until ten days after a sufficient number of certified copies of the matter to be 
published shall have been received at the office of the Code Committee, except 
that the lists filed within ten days after the effective date of this code shall 
take effect on the date of filing thereof. 

(d) No member shall sell any Industry product contrary to his published 
prices, discounts, or terms of sale; and since a substantial majority of the 
industry's products are sold direct by the manufacturer to the consumer, and 
since the purpose and effect of this Article would be otherwise defeated, it 
shall be an unfair method of competition for any member to distribute to the 
user industry products indirectly through an agent, dealer, broker, or otherwise, 
contrary to his published prices, discounts, or terms of sale. 

ARTICLE VII SELLING BELOW COST 

(a) The pi-icing and/or selling of any item of industry products below mem- 
ber's cost to the ultimate consumer as determined by the cost accounting: 
methods set up by the Code Committee and subject to approval by the Adminis- 
trator, in the quantities, under the conditions, and at the points of delivery 
involved, is an unfair method of competition. 

(b) The Code Committee shall have power on its own initiative, or on 
the complaint of any member of the Industry, to cause an investigation of any 
price, discount, or terms of sale for any item of industry product shown in any 
list of industry products filed wath it by any member of the Industry, and for 
the purpose of the investigation thereof to require such member to furnish such 
information concerning cost as defined in Section (a) of this article as the 
Committee shall deem necessary or proper for such purpose. 

If after such Investigation, said Committee shall determine that such 
price, discount, or terms of sale is unfair as being contrary to Section (a) 
of this Article, and if such member Avithin ten days after notice to it of such 
determination by the Code Committee shall not file a new list showing the price, 
discount, or terms of sale in accordance with said Section (a) (which shall 
become effective immediately on the filing of such list), the Code Committee 
shall report the results of its investigation to the proper authority or authori- 
ties for action. 



406 

ARTICLE VIII — EXTBAS AND DEDUCTIONS 

The Code Committee, on the basis of the direct cost thereof (direct cost 
as used in this article being defined as the cost of labor, material, selling, and 
distribution, plus 10%) may estalilish the minimum additions to and maximum 
deductions from the base prices of the various lines of industry products, which 
maximum deductions and minimum additions members shall use in determining 
the list prices of variations from the base products. 

ARTICLE IX SPECIALS 

No item of industry products which is not covered by the published list prices 
of the manufacturer thereof shall be sold or offered for sale at net prices, 
discounts, or terms more favorable to the purchaser than the most favorable 
published discounts, terms, or net prices applying to such item. 

ARTICLE X MODIFICATION OR CANCELLATION OF CODE 

This code and all the provisions thereof are expressly made subject to the 
right of the President, in accordance with the provisions of subsection (b) of 
Section X 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, 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. 



SCHEDULE A 

Steel Lockek Division, Divisional Supplemental Codb 

industry products 

The products of this Industry shall embrace steel box lockers, single-tier 
lockers, double-tier lockers, two-person lockers, compartment lockers, and such 
miscellaneous accessories, fittings, and parts used therewith, as primarily de- 
signed and sold for use in schools, clubs, gymnasiums, commercial and indus- 
trial establishments. Revision of this list may be made from time to time 
by the Code Committee or by the Administrator in his discretion. Such gen- 
eral specifications as may be required to classify and standardize these prod- 
ucts shall be worked out by the Planning and Classification Board, subject to 
the approval of the Code Committee. 

DISCOUNTS AND TERMS OF SALE 

Discounts as provided in Article VI shall be applied to all list prices pub- 
lished under the provisions of said Article, and shall truly represent variance 
in cost of distribution to the ultimate consumer as determined by the Code 
Committee in accordance with the provisions of Article VII. 

On all sales to consumer or user, terms shall be 30 days net without discount 
for early payment. If job is to be erected, terms are net upon completion ol 
erection. 

(407) 



EXHIBIT C 

Divisional Supplemental Code foe the Steel Shelving Industby 

AETICLE I — purpose 

The purpose of this divisional supplemental code is to supplement the basic 
code of the Business Furniture, Storage Equipment and Filing Supply Indus- 
try, to make it specifically applicable to the Steel Shelving Industry, a division 
thereof. 

ABTICLE II — INDUS1"KY 

This Industry shall be defined as including any one engaged in the manufac- 
ture and sale of any item of steel shelving (hereinafter referred to as industry 
products) as defined in Art. II of the basic code under "Steel Shelving Divi- 
sion ", either as a standard list item, or offered as a substitute or in competition 
with such item. 

article III — code authoeitt 

(a) A Code Committee, consisting of one nonvoting representative of the 
Administrator if the Administrator so elects, and five members of the Industry 
shall constitute the code authority of said Industry. 

(b) Each member of the Industry shall within thirty days after the effective 
date of this code certify to the Secretary of the National Emergency Committee 
under oath the total net value of domestic shipments of all industry products 
for each month of the calendar year next preceding the above date, and for 
each succeeding calendar month up to the date of such certification, and shall 
thereafter certify such values monthly within twenty days after expiration of 
each succeeding calendar month. 

(c) In the election of the Code Committee and in all cases where voting 
power is exercised by the members of the Industry, the members shall be 
divided into five classes, based on volume of production as above determined, 
and such voting power shall be determined as follows: 

One fifth of the highest value of shipments, as defined in par. (b), reported 
by any member for the next preceding calendar year shall be the base value. 
The number of votes to which each member is entitled shall be the quotient 
obtained by using this base value as a divisor and the value of shipments 
reported by said member for the same year as a dividend. For the purpose of 
this computation fractions shall be considered as whole numbers. 

ARTICLE IV — PLANNING AND CLASSIFICATION 

(a) In the event that any member of the Industry desires to manufacture 
and offer for sale any item not included in the original lists submitted by him 
as provided in Article VI, Section (d), he shall make available specifications 
and samples of such item to the Planning and Classification Board of the 
Industry for the proper listing of such item as a standard list item subject to 
the approval of the Code Committee. No standard list item not included in 
the list originally submitted by him shall be sold or offered for sale by any 
member until after classification by the Planning and Classification Board, as 
above provided, and approval of said classification by the Code Committee, 
nor until after all requirements for publication contained in Article "VI hereof 
have been completely fulfilled. All action under this section shall be taken 
within 30 days after submission by the member. 

article V — DISCRIMINATION 

(a) No member shall make any sale or contract of sale, directly or indirectly, 
by any means whatever, of any industry products at a price or on terms and 

(408) 



409 

rondifions more favorable to one purcliaser than to another, whether such 
purchasers shall be private ii)clivi<lu;ils, coriioratlons, or firms, or Federal, Ktate, 
Municipal or other public bodies; provided that this shall not prevent price 
differences necessarily result ing from differences in the model, grade, quantity, 
or point of delivery of the products sold. 

(b) No member of the Industry shall make any purchase of or allowance 
for used industry pi'oducls in connection witii a sale of new industry products 
or as an Indepeiulent cash transaction, directly or indireclly, by any means 
whatever, at a price or on terms and conditions more favorable to one seller 
than to another. 

ARTICLE VI I'lUCE PUBLICATION 

(a) Each member of the Industry shall, within ten days after the effective 
date of this code, pulilish and continue to publish, as changes are made — • 

1. List prices covering every item of indusl^ry products, which such member 
offers for sale as standard list items, and list prices and quantities of de- 
standardized or obsolete items; 

2. Deduction or extras as determined in accordance with Article VIII hereof; 

3. Quantit.v discounts from list priees and terms of sale allowed to the pur- 
chaser, as provided in Schedule A hereto attached and made a part hereof; 
in such manner that Interested members of the trade and the buying public may 
at all times obtiiin accurate information as to the prices charged by such 
member of the Industry for its industry products. Failure to publish or to 
continue to publish, as changes are made, any or all of the aforesaid informa- 
tion, or the publishing of false or fictitious prices, discounts or terms, for any 
item of industry products, is an unfair method of competition. 

(b) No member of the Industry shall designate any current line as destand- 
ardlzed or obsolete unless in fact such line has been discontinued. 

(c) Each member of the Industry shall immediately publish and continue to 
publish as changes are made the prices paid or allowances made for used indus- 
try products of the various makes and models, in such manner that interested 
members of the trade and buying public may at all times obtain accurate infor- 
mation as to the real prices charged by such member of the Industry for its 
industry products. Failure to publish, or to continue to publish, as changes 
are made, any or all of the aforesaid information, or the publishing of any false 
or fictitious price or allowance for any make or model of such used industry 
products, is an unfair method of competition. 

(d) The above requirements for publication shall not be deemed fulfilled 
until ten days after a sufficient number of certified copies of the matter to be 
published shall have been received at the oflice of the Code Committee, except 
that the lists filed within ten days after the effective date of this code shall 
take effect on the date of filing thereof. 

(e) No member shall sell any industry product contrary to his published 
prices, discounts, or terms of sale ; and since a substantial majority of the indus- 
try's products are sold direct by the manufacturer to the consumer, and since 
the purpose and effect of this Article would be otherwise defeated, it shall be 
an unfair method of competition for any member to distribute to the user in- 
dustry products indirectly through an agent, dealer, broker, or otherwise, con- 
trary to his published prices, discounts, or terms of sale. 

ARTICLE VII — SELLING BELOW COST 

(a) The pricing and/or selling of any item of industry products below mem- 
ber's cost to the ultimate consumer as determined by the cost accounting methods 
set up by the Code Committee, and subject to approval by the Administrator, in 
the quantities, under the conditions, and at the points of delivery involved, is 
an unfair method of competition. 

(b) The Code Committee shall have power on its own initiative, or on the 
complaint of any member of the Industry, to cause an investigation of any price, 
discount, or terms of sale for any item of industry product shown in any list 
of industry products filed with it by any member of the Industry, and for the 
purpose of the investigation thereof to require such member to furnish such 
information concerning cost as defined in Section (a) of this article as the 
Committee shall deem necessary or proper for such purpose. 

If after such investigation said Committee shall determine that such price, 
discount, or terms of sale is unfair as being contrary to Section (a) of this 



410 

Article, aud if such member witliin ten days after notice to it of such determina- 
tion by the Code Committee shall not file a new list showing the price, dis- 
count, or terms of sale in accordance with said Section (a) (which shall become 
effective immediately on the filing of such list), the Code Committee shall report 
the results of its investigation to the proper authority or authorities for action. 

ARTICLE VIII — EXTRAS AND DEDTJCTIOXS 

The Code Committee, on the basis of the direct cost thereof (direct cost 
as used in this article being defined as the cost of labor, material, selling, and 
distribution, plus 10%) may establish the minimum additions to and maximum 
deductions from the base prices of the various lines of industry products, 
which maximum deductions and minimum additions members shall use in 
determining the list prices of variations from the base products. 

ARTICLE IX SPECIALS 

No item of industry products whicli is not covered by the published list prices 
of the manufacturer thereof shall be sold or offered for sale at net prices, dis- 
counts, or terms more favorable to the purchaser than the most favorable 
published discounts, terms, or net prices applying to such item. 

ARTICLE X — MODIFICATION OR CANCELLATION OF CODE 

This code and all the provisions thereof are expressly made subject to the 
right of the President, in accordance with the provisions of subsection (b) of 
Section X 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, but without limitation, to the right of the Presi- 
dent to cancel or modify his approval of this Code, or any condition imposed 
by him upon his approval thereof. 



SCHEDULE A 

Steel Shelving Division, Divisional Supplemental Code 

industry products 

There shall be adopted three classifications governing Industrial and General 
Purpose Shelving and Accessories, one for medium loads, one for medium-heavy 
loads, and the third for extra-heavy loads, to be governed by specifications to 
be formulated by the Planning and Classification Board an<l approved by the 
Code Committee. Revisions may be made from time to time by the Code 
Committee or by the Administrator at his discretion. 

definition of customers 

Preferred Agent. — A preferred agent is a retailer (individual, firm, or cor- 
poration) who buys for resale and invoices direct to the consumer, thus assum- 
ing the resiK)nsibility for credit and carrying the account. A preferred agent 
may or may not have an exclusive contract and may or may not carry a stock. 

Cammission Agent. — A commission agent is a retailer (individual, firm, or 
corporation) who sells to the consumer on a commission basis, the manufac- 
turer to invoice the consumer. 

C&nsiimer. — A consumer is any individual, firm, or corporation who buys for 
his own use. The discount to which the consumer is entitled shall be deter- 
mined by the list-price value of merchandise ordered at one time for one 
delivery. 

discounts and teems of sale 

Discounts as provided in Article VI, allowed to each of the above-defined 
classes of customers, shall be applied to all list prices published under the 
provisions of said Article, and shall truly represent variance in cost of distri- 
bution to the ultimate consumer as determined by the Code Committee in 
accordance with the provisions of Article VII. 

On all sales to consumer the terms shall be 30 days net from date of in- 
voice with no discount for early payment, or, if the equipment is to be erected, 
the terms are net upon completion of erection. 

(411) 
O 



Approved Code No. 89 
CODE OF FAIR COMPETITION 

FOR THE 

OFFICE EQUIPMENT MANUFACTURERS 
INDUSTRY 

As Approved on November 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 IG, 1933, for my approval of a Code of 
Fair Comi^etition for the Office Equipment Manufacturers Indus- 
tr}^, 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 per- 
tinent 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 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, 

Administrator. 

The White House, 

November .^, 193-3. 

29945 296-186 34 (413) 



November 3, 1933. 
The President, 

The 'White Bouse. 

Sir: A proposed Code of Fair Competition for the Office Equip- 
ment Manufacturers Industry was submitted to the Administrator 
on August 11, 1933, by the Office Equipment Manufacturers Insti- 
tute representing 93% of the known members of the Industry. The 
hearing was conducted in Washington on September 21, 1933, and 
the Code was revised during the recess of this hearing and is sub- 
mitted in its present form for approval. Every person who re- 
quested an appearance was properl}' heard in accordance with 
statutory and regulatory requirements. 

The Industry's sales closely reflect fluctuations in general business 
conditions. Its volume, therefore, in the past four years shows 
an approximate drop of 70% with a coincident drop, however, of 
only 48% in the number of employees. The majority of the Industry 
immediately signed the President's Reemployment Agreement with 
substitutions granted by the P.R.A. Policy Board, resulting in a net 
increase in employment, as shown by the report of the Research and 
Planning Department, of approximately 40% over the average num- 
ber of wage earners employed in the first half of the year 1933. The 
reemployment of labor with attendant increases in yearly payroll 
has already been materially increased since the date of the submitted 
figures and will be further accelerated by any increase in the volume 
of its business. 

RESUME or CODE 

Section 1 states the purpose of the Code. 

Sections 2, 3, 4, 5, and 6 accurately define special references made 
in the Code. 

Section 7 states the effective date. 

Sections 8, 9, 10, 11, 12, 13, and 14 set forth the mandatory labor 
provisions, minimum age requirements, maximum hours, and mini- 
mum wage rates. The maximum hours are limited to 40 per week 
for factory employees. These are permitted to be averaged over a 
ten weeks' period ; in addition, under exceptional circumstances, such 
employees may be permitted to work 48 hours in not more than eight 
weeks of any six months' period. A 10% tolerance of the stated 
hours is extended to time clerks, firemen, and repair crews. For office 
employees the maximum hours are 40 per week, except that in any six 
weeks of any six months' period they may work 48 hours. 

The minimum wage rate for factory employees is 40^ per hour for 
male and 350 per hour for female employees, unless the hourly rate 
for the same class of work on July 15, 1929, was less than 400 per 
hour, in which case such rates shall not be less than that paid at that 
date and in no event less than 350 per hour. For office employees the 

(414) 



415 

minimum wage varies from $15.00 to $12.00 according to the popu- 
lation differentials. Apprentices and learners without previous 
experience may not constitute more than 5% of the total number of 
employees, and their wages shall not be less than 80% of the specified 
minimums. The same provisions apply to office boys and girls. 

FINDINGS 

The Administrator finds: A. This Code complies in all respects 
with the pertinent phrases of Title I of the said Act, including with- 
out limitation, subsection (a) of Section 7, and subsection (b) of Sec- 
tion 10 thereof : B. The Office Equipment Manufacturers Institute is 
truly representative of the Ofl&ce Equij)ment Manufacturers Industry, 
and the by-laws of this Industry provide no inequitable restrictions 
to membership ; 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. 

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

OFFICE EQUIPMENT MANUFACTURERS INDUSTRY 

Purpose 

1. To effectuate the policy of Title I of the National Industrial 
Recovery Act during the period of the emergency, with the purposes 
of relieving unemployment, establishing fair and adequate wages, 
regulating hours of work, improving standards of labor, and pro- 
moting ai.\d insuring fair trade practices, beneficial alike to employer, 
employee, and consumer, the following provisions are established as 
a Code of Fair Competition for the Office Equipment Manufacturers 
Industry. 

Definitions 

2. The term " Office Equipment Manufacturers Industry " as used 
herein is defined to mean the manufacture, or the manufacture and 
distribution, of machines, equipment, appliances, attachments, sys- 
tems, and/or supplies incident thereto (other than business furniture, 
equipment, and supplies defined in the Code of Fair Competition for 
the Business Furniture, Storage Equipment and Filing Supply 
Industry), primarily for use in offices and/or stores, such as manu- 
factured and distributed by the present members of the Office Equip- 
ment Manufacturers Institute. 

3. The term " Industry " as used herein means the Office Equipment 
Manufacturers Industry. 

4. The term " Producer " is synonymous with the term " Manu- 
facturer or manufacturer and distributor " and includes anyone, 
firm, association, or corporation engaged in the production, or pro- 
duction and distribution of products of the Industry. The term 
shall include any corporation which is a subsidiary of or is affiliated 
with such Producer, directly or indirectly, through ownership or 
control, excepting, however, any producer or subsidiary or affiliated 
corporation engaged in the production and/or distribution of the 
Products of the Industry outside the United States, but not except- 
ing the production and/or distribution within the United States 
of any such corporation. 

5. The term " Operator " as used herein is defined to mean any 
person employed to operate machines, equipment, and appliances 
manufactured and distributed by the members of the Office Equip- 
ment Manufacturers Industry. 

6. Operators of machines, equipment, and appliances manufac- 
tured and distributed by the members of the Office Equipment 
Manufacturers Industry shall be classed as office employees. 

Effective Date of Code 

7. The effective date of this Code shall be the second Monday fol- 
lowing the date on which the Code shall have been approved by the 

(416) 



417 

President of the United States pursuant to the National Industrial 
Recovery Act, except that the provisions in regard to labor, wages, 
and hours sh