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NATIONAL RECOVERY ADMINISTRATION
HUGH S. JOHNSON, Administrator for Industrial Recovery
CODES OF FAIR COMPETITION
Nos. 111-150
AS APPROVED
BY
PRESIDENT ROOSEVELT
NOVEMBER 11-DECEMBER 7, 1933
WITH SUPPLEMENTAL CODES, AMENDMENTS, AND
EXECUTIVE ORDERS ISSUED BETWEEN
THESE DATES
VOLUME III
WE DO OUR PART
■ ■ llNIT^D-' STAT.es ; '.'''.
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934
o^^^ui A^c^
V^-b
MAY 26 1936
Chargeii to credit acci
with Supt. of Documents
>• »j • • •
CONTENTS
Code
No.
Industry
Date Ap-
proved,
1933
CODES OF FAIR COMPETITION
111 Air Transport
112 All-Metal Insect Screen
113 Limestone
114 Scientific Apparatus
115 Wood Plug
116 Mop Stick
117 Gear Manufacturing
118 Cotton Garment
119 ' Newsprint
120 I Paper and Pulp
121 I Hotel
122 Special Tool, Die, and Machine Shop
123 Structural Clay Products
124 Motion Picture
125 Upholster}^ and Drapery Textile
126 Chinaware and Porcelain Manufacturing
127 Reinforcing Materials Fabricating
128 Cement
129 Radio Broadcasting
130 Precious Jewelry Producing
131 Pipe Nipple Manufacturing
132 Malleable Iron
133 Concrete Masonry
134 Gas Appliances and Apparatus
135 Cigar Container
136 Vitrified Clay Sewer Pipe Manufacturing
137 Warm Air Furnace Manufacturing
138 Anti-Friction Bearing
139 Machine Tool and Equipment Distributing Trade
140 Waterproofing, Dampproofing, Caulking Compounds, and
Concrete Floor Treatments Manufacturing
141 Investment Bankers
142 Retail Jewelry Trade
143 Wool Felt
144 Paper Making Machine Builders
145 Furniture Manufacturing
146 Excelsior and Excelsior Products
147 Motor Vehicle Storage and Parking Trade
148 Pyrotechnic Manufacturing
149 Machined Waste Manufacturing
150 Asphalt and Mastic Tile
(in)
Nov. 14
Nov. 14
Nov. 14
Nov. 14
Nov. 14
Nov. 14
Nov. 14
Nov. 17
Nov. 17
Nov. 17
Nov. 17
Nov. 17
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Nov. 27
Dec. 7
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
1
9
21
31
47
57
67
77
103
115
175
187
197
215
259
273
285
325
353
365
379
393
407
421
433
445
461
473
485
497
509
517
535
543
551
565
577
591
607
617
CONTENTS— Continued
Date, 1933
LABOR PROVISIONS
Retail Food and Grocery Trade
Wholesale Food and Grocery Trade
EXECUTIVE ORDERS
Extension of stay limiting machine hours in Cotton Textile
Industry Code as applying to rubber- tire yarns
Prescribing Rules for Certification of Documents
Authorizing Administrator to modify agreements entered into
or approved by the President under Title I of the National
Industrial Recovery Act
Extending termination date of stay limiting machine hours in
Cotton Textile Industry Code
Commercial bribery provisions to be included in codes hereto-
fore approved
Extension of effective date of Code of Fair Competition for
the Retail Trade
Denial of applications for exemption from Cotton Textile
Industry Code
Providing for Submission of Statistical Information by Per-
sons subject to Codes of Fair Competition
Nov. 15
Nov. 15
633
645
Nov.
Nov.
13
18
655
656
Nov.
22
657
Nov.
27
658
Nov.
27
659
Nov.
27
660
Dec.
4
661
Dec.
7
662
(IV)
CODES OF FAIR COMPETITION
Approved Code No. Ill
CODE OF FAIR COMPETITION
FOR THE
AIR TRANSPORT INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Air Transport 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 such a said code of fair com-
petition complies in all respects wath 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 IG, 1933, and
otherwise, do adopt the findings and approve the report and recom-
mendations of the Administrator and do order that the said code of
fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
Administrator.
The White House,
Novemler U, 1933.
20227°^ 296-98 34 (1)
November 10, 1933.
The President,
The White House.
Sir : This is a report of the Hearing on the Code of Fair Competi-
tion for the Air Transport Industry of the United States and the
Territory of Alaska, conducted in Washington on the 31st of August
1933, in accordance with the provisions of the National Industrial
Recovery Act,
Provisions of this Code as to Wages and Hours
i
Maximum hours for employees are established as follows : Clerical
employees — 40 hours per week. Shop mechanics and shop mechanics'
helpers — 10 hours per week, averaged over a period of 4 weeks with a
maximum of 48 hours in aii}^ one week. Service mechanics and serv-
ice mechanics' helpers — 48 hours per week, averaged over a period of
8 weeks with a maximum of 54 hours in any one week. Ground radio
operators and field clerks not more than 48 hours in any one week.
AVatchmen — 54 hours in any one week. Chauffeurs — 48 hours per
week, averaged over a period of 6 weeks with a maximum of 54 hours
in any one week.
No employee shall be paid less than at the rate of $15.00 a week.
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 a readjustment so that equitable differentials in earn-
ings will be maintained and the rates of pay of employees whose hours
Iiave not been reduced shall not be decreased.
Employment of any person under 16 years of age and anyone
under 18 years of age at occupations hazardous in nature or dangerous
to health is prohibited.
In recommending the approval of the hour provisions of this Code
it has been necessar}^ to recognize that air transportation is a public
service requiring 24 hours per day ojjeration throughout the year and
that its schedules are continuously subject to interferences by weather
conditions.
Economic Effect of the Code
The Air Transport Industry represents an exception in the pres-
ent depression in that it has added to its personnel and expanded
steadily from year to year. Its personnel increased from about
1,861 in 1929 to about 4,260 in June 1933. Under the recommended
Code the Industry will show an additional increase in personnel of
about 14.5%. The total increase in pay roll will be about 20%„
It is considered that this is a substantial contribution to the Reem-
ployment Program in view of the fact that the Post Office Depart-
ment's mail payments which form the largest item of the air-line
income have been reduced approximately 28% for 1933.
(2)
Through the provisions of this Code the Industry has an oppor-
tunity to provide for the control of new operations so that it will
not be subject to uneconomic paralleling of lines and the destructive
competition experienced during the course of development by the
railroads and bus lines.
It is believed that the provisions in this Code permit adequate con-
trol and at the same time insure development and sound expansion.
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
Air Transport 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.
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,
Admimstrator.
CODE OF FAIR COMPETITION
FOR THE
AIR TRANSPORT 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 Air Transport Industry, and upon ap-
proval by the President shall be the standard of fair competition for
such Industry and shall be binding upon every member thereof.
Article II — Definitions
As used in this Code :
(1) The term "President" means the President of the United
States.
(2) The terms "Act "' and •"Administrator " mean respectively the
National Industrial Recovery Act, and the Administrator of Title I
of said Act.
(3) The term " Industry '' includes all public carriers for hire by
aircraft for passengers, and/or mail, and/or cargo on scheduled
operations and services incidental thereto within the several States
of the Ignited States, the District of Columbia, and the territory of
Alaska, and such branches or subdivisions thereof as may from time
to time be included by the President under the provisions of this
Code, but does not include scheduled operations and/or services
incidental thereto not within the several States of the United States,
the District of Columbia, and the territory of Alaska.
(4) The term " employee '' includes any person engaged in any
phase of the Industry in any capacity, receiving compensation for
his services, irrespective of the method of pajanent of such
compensatiou.
(5) The term "employer" includes anyone engaged in the
Industry by whom any emploj^ee is compensated or employed.
(6) The term " member of the Industry '' includes anyone engaged
in the Industry as above defined, either as an employer or on his
own behalf.
(7) The term " Chamber " means the Aeronautical Chamber of
Commerce of America, Inc., a trade association organized under the
laws of the State of New York.
Article III — Hours
1. No employee in the Industry shall be permitted to work in
excess of forty (40) hours in any one week except as follows:
a. Shop mechanics and shop mechanics' helpers not more than
forty (40) hours per week averaged over a period of four (4) weeks,
with a maximum of forty-eight (48) hours in any one week.
(4)
b. Service mechanics and service mechanics' helpers not more
than forty-eight (-48) hours per week averao-ed over a period of eight
(8) weeks with a maximum of fifty-four (54) hours in any one week.
c. Ground radio operators and fiekl clerks not more than forty-
eight (48) hours in any one week.
d. Watchmen not more than fifty-four (54) hours in any one week.
e. Chauffeurs not more tlian forty-eight (48) hours in any one
week averaged over a period of six (6) weeks, with a maximum of
fifty-four (54) hours in any one week.
f. The number of employees classified as ground radio operators,
field clerks, and watchmen shall not exceed fifteen per cent (15%)
of the total number of emplo^'ees of any employer.
2. No employee shall be permitted to work for a total number of
hours in excess of the number of hoiu's prescribed herein whether
emploj'ed by one or more employers.
3. No employee shall be regularly employed more tlian six (6) days
in any seven (7) daj^ period.
4. The provisions of this Article shall not apply to any employee
on emergency maintenance or emergency repair work involving acci-
dents endangering life or property, nor to persons who receive more
than $35.00 a week employed in a managerial, executive, or profes-
sional capacity, or as pilots or copilots.
Article IV — Wages
1. No employee shall be paid less than at the rate of $15.00 a week.
2. The rates of pay of all employees included in Article III whose
hours of employment haA'e been reduced by the provisions of this
Code but whose wages have not been increased b}^ the foregoing sec-
tion of this Article, shall be increased by a readjustment so that
equitable difi'erentials in earnings will be maintained, and the rates
of pay of such employees included in Article III whose hours have
not been reduced shall not be decreased.
3. Those employees included in paragrajDh (a) Article III above
who work in excess of eight (8) hours per day, or in excess of forty
(40) hours per week, and those employees included in paragi*apli (b)
Article III above who work in excess of forty-eight (48) hours per
week, shall be compensated by not less than one and one third times
the normal rate of pay for such excess. All other employees on emer-
gency maintenance or emergency repair Avork involving accidents
endangering life or property shall receive at least time and one third
pay per hours' work in excess of the maximum hours herein provided.
4. Any employee shall be classified according to the classification
of his occupation existing on June 16, 1933, provided he is still per-
forming the same duties. If he is performing other duties, he shall
be classified as to occupation on the basis of such duties as of said
date.
Article V — Laror Provisions
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 rejH-csentatives or
in self-organization or in other concerted activities for the jnirpose
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 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 pay, and other conditions of employment, ap-
proved or prescribed by the President.
4. No person under sixteen (16) years of age shall be employed in
the Industry nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or dangerous to health.
The Code Authority shall submit to the Administrator before March
1, 1934, a list of such occupations. An employer shall be deemed to
have complied with these provisions if he shall have on file a cer-
tificate or permit duly issued by the Authority in such state em-
powered to issue employment or age certificates or permits showing
that the employee is of the required age.
5. Within each State this Code shall not supersede any laAvs of
such State imposing more stringent requirements regulating the age
of employees, hours of work, or general working conditions than
under this Code, nor shall it supersede the provisions of the Air
Commerce Act of 1926, or any regulations issued thereunder or
pursuant thereto.
Article VI — Administration
To effectuate further the purposes of the Act, a Code Authority
is hereby set up to cooperate with the Administrator in the admin-
istration of this Code.
1. The Code Authority shall be composed of seven (7) voting
members and one or more nonvoting members. Not more than five
(5) voting members shall be chosen by the Chamber. Not more
than two (2) voting members may be chosen by those assenting to
the Code who are not members of the Chamber. One or more non-
voting members may be appointed by the Administrator to serve
Avithout cost to the Industry. The method of selection of the voting
members of the Code Authority shall be subject to the approval of
the Administrator.
2. Any trade or industrial association participating in the selec-
tion of or activities of the Code Authority shall comply with the
following requirements: (a) it shall impose no inequitable restric-
tions on membership, (b) it shall not violate any rule or regulation
prescribed by the President under the Act, and (c) it shall submit
to the Administrator true copies of its articles of association, bylaws,
regulations, and amendments when made thereto, together with such
other information as to membership, organization, and activities as
the Administrator may require to effectuate the policies of this Act.
3. The Administrator may provide such hearings as he may deem
projDer for those claiming the right to be represented on the Code
Authority, and may thereafter change the method of selection and
the organizations selecting the members of the Code Authority in
order that the Code Authority shall be truly representative of the
Industry.
4. An appeal from any action by the Code Authority affecting
the rights of any employer or employee in the Industry may be
taken to the Administrator.
5. Only employers assenting to this Code shall be entitled to par-
ticipate in the selection of the Code Authority and to share in its
activities as hereinafter set forth.
6. The Code Authority shall have the following duties and powers,
to the extent permitted by this Act, 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 reasonable rules for its own procedure.
b. To receive complaints of violations of this Code, make investi-
gations thereof, provide hearings thereon, and adjust such com-
plaints, and bring to the attention of the Administrator for
prosecution, recommendations, and information relative to unad-
justed violations.
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 may be kept informed with respect to the observance
thereof. In addition to the information required to be submitted
to the Code Authority as set forth in this Article there shall be
furnished to government agencies such statistical information as the
Administrator may deem necessary for the purposes recited in Sec-
tion 3 (a) of the National Industrial Recovery Act.
d. To recommend to the Administrat<;r i) uniform system of
accounting which upon his approval shall be used in furnishing the
aforesaid reports.
e. To initiate, consider, and submit proposals for amendments or
modifications to this Code, which upon approval by the President,
after such hearings as he may prescribe, shall be incorporated herein
with the same force and eifect as if originally made a part hereof.
f. To determine and collect with the approval of the Administra-
tor, from those assenting to the Code their equitable and propor-
tionate shares of the expense of maintaining the Code Authority
and its activities.
g. To cooperate with the Administrator in regulating the use of
the N.K.A. insignia solely by those who have agreed to and do
comply with this Code.
7. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
act of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority be liable
to anyone for any action or omission to act under the Code, except
for his own willful misfeasance or nonfeasance.
8. The Code Authority shall have the powers and duties elsewhere
provided in this Code, subject to the right of the Administrator, on
review, to disapprove or modify any action taken by the Code
Authority.
Article VII — Trade Practices
Within sixty (CO) days from the date of approval of this Code
with respect to existing routes, and Avithin thirty (30) days after
the establishment of any extension of an existing route, and prior to
the establishment of any new route or service, each member of the
Industry shall file with the Code Authority the following :
1. A certified copy of a letter or certificate of authority to operate,
issued by the United States Department of Commerce permitting
service over such route or extension thereof.
2. Such information in respect to routes, schedules, tariffs, work-
ing conditions, and other matters pertinent to the purpose of this
Code as the Code Authority with the approval of the Administrator
may from time to time prescribe in order to inform the President as
to the observance of this Code.
3. Evidence of compliance with such standards and conditions of
operation, other than those required by the Department of Com-
merce, as the Administrator upon the recommendation of the Code
Authority, after such notice and hearing as he shall prescribe, may
approve as reasonable and in the interests of fair competition.
Article VIII — General
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
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 limitations 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.
2. Nothing in this Code shall ])erinit monopolies or monopolistic
practices or eliminate or oppress or discriminate against small
enterprises.
3. Each member shall post in a conspicuous place in each work-
shop a full copy of this Code.
4. This Code shall become effective on the second Monday after
it shall have been approved by the President of the United States.
Approved Code No. 111.
Registry No. 1741-2-04.
O
Approved Code No. 112
CODE OF FAIR COMPETITION
FOK THE
ALL-METAL INSECT SCREEN INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Kecovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the All-Metal Insect Screen 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 re-
spect thereto, and the Administrator having found that the said code
of fair competition complies in all respects with the pertinent pro-
visions of Title I of said Act and that the requirements of clauses (1)
and (2) of subsection (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and other-
wise, 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.
AjDproval recommended :
Hugh S. Johnson,
A chmnistra tor.
The White House,
Novemler U, 1933.
29174° 296-90 34 (9)
November 4, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
All-Metal Insect Screen Industry in the United States, as revised
after a hearing conducted in Washington on October 26, 1933, in
accordance with the provisions of the National Industrial Recovery
Act.
PROVISIONS or THIS CODE AS TO WAGES AND HOURS
This code provides a maximum of forty hours in one week and
eight hours in one day or forty-eight hours in any one week aver-
aged over a four-week period. Overtime shall be paid at one and
one-half times the normal rate.
Office, accounting, or clerical workers may work in excess of the
above during any month's period but are limited to forty-eight hours
in any one week.
Professional and supervisory employees receiving more than thir-
ty-five dollars a week are exempt from the above scale of hours.
Emergency maintenance emploj^ees shall be paid one and one-half
times their normal rate for overtime.
Installation employees, in projects other than those covered by
the Construction Industry, shall be paid not less than sixty cents
an hour.
Employers shall arrange work to provide the maximum prac-
ticable continuity of employment.
Employers shall not increase requirements of employees' produc-
tion to defeat purpose of this code.
Em])lo.yees shall receive not less than sixteen dollars for a week
of forty hours except that accounting, clerical, and office employees
shall receive fifteen dollars for a week of forty hours except that
office boys or girls under eighteen, not to exceed one for each ten
office employees, shall receive not less than eighty percent of the
above rates.
A minimum rate is established regardless of whether an employee
is compensated on a time rate, piecework, or other basis.
To the extent practicable wage rates for occupations other than
those receiving the minimum shall be equitably adjusted.
Males and females shall receive the same pay for the same work.
Persons under 16 years shall not be emploj^ed in the industry,
nor shall any person under 18 be employed in hazardous occupations.
With permission of State Authority, persons physically or mentally
handicapped may be employed below the minimum wage provided.
ECONOIVIIC EFFECTS OF THE CODE
The Eesearch and Planning Division estimates employment in-
creases of twenty-five percent and wage increases of twenty percent
as a result of the code.
(10)
11
This Code's provisions are expected to be beneficial to the industry,
but they will not cause a marked increase in the cost of this Indus-
try's products to the public.
Substantial increases in production in this Industry are contingent
upon new construction which will result in proportionate increases
in employment.
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 inec^uitable restrictions on
admission to membership therein and is truly representative of the
All-Metal Insect Screen 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
ALL-METAL INSECT SCREEN 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 All-Metal Insect Screen Industry and upon
approval by the President shall be the standard of Fair Competition
for this Industry.
Article II — Definitions
1. The term " all-metal insect screen industry " as used herein is
defined to mean the business of manufacturing, selling and install-
ing by the manufacturer of all-metal insect screens except the ad-
justable type stock all-metal insect screens.
2. The term " employee " as used herein includes anyone engaged
in the industrj'^ in any capacity receiving compensation for his serv-
ices, irrespective of the method of payment of his compensation.
3. The term " employer " as used herein includes anyone for whose
benefit such an employee is so engaged.
4. The term " member of the industry " includes any employer
who shall be subject to this Code.
5. The term "Administrator " means the Administrator of Title I
of the National Industrial Recovery Act.
6. The term " President " as used herein shall mean the President
of the United States or such officers, agents, and employees as he
may designate or appoint to aid or carry out his functions under
Title I of the National Industrial Recovery Act.
Article III — Hours
1. 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-four
(24) hour period or forty-eight (48) hours in any one (1) week
averaged over a four (4) weeks' period, except that :
(a) Employees engaged in office, accounting, and/or clerical work
may be employed in excess of the above during any one (1) month's
period, when such employees may be employed not more than forty-
eight (48) hours during any one (1) week.
(b) The maximum hours fixed herein shall not apply to employees
engaged in professional, executive, administrative, or supervisory
work, who receive thirty-five (35) dollars or more per week.
(c) The maximum hours fixed herein shall not apply to employees
on emergency maintenance or emergency repair Avork, involving
breakdowns or protection of life or property, but in any such special
(12)
13
case at least one and one-half (11/2) times the normal rate shall be
paid for hours worked in excess of the eight (8) hours in any one
twenty-four (24) hour period herein provided.
(d) The rate for installation in projects other than those covered
by the Construction Industry, shall be not less than sixty (60) cents
per hour.
2. Nothing herein contained shall be construed to apply to em-
ployees whose rates of wages or hours of labor are established for
specific projects by competent governmental authority. Federal, State,
or Political subdivision thereof, in accordance with law, where such
hours are shorter.
3. No employer shall engage any employee for any time, which,
when totaled with that already performed for another employer, or
employers, exceeds the maximum permitted herein.
4. Employers who personally perform manual work or are en-
gaged in mechanical operations shall not work in excess of the pre-
scribed maximum number of hours.
5. An employer shall so administer work in his charge as to
provide a maximum practicable continuity of employment for his
personnel.
6. No increases in the amount of production work shall be required
of employees for the purpose of avoiding the provisions of this Code
in respect to wages and hours of employment. All such new require-
ments shall be reported to the Code Authority.
Article IV — Wages
1. No employee shall be paid at less than the rate of sixteen (16)
dollars per week of forty (40) hours or forty (40) cents per hour,
except that:
(a) Accounting, clerical, or office employees shall be paid not less
than fifteen (15) dollars per week of forty (40) hours, except that
office bo5^s and/or girls under eighteen (iS) years of age shall be
paid not less than eighty (80) percent of the said rate. Such office
boys and/or girls shall be limited to one (1) for each ten (10) office
employees employed by an employer.
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. An equitable adjustment shall be made in the wages of all em-
ployees now receiving more than the minimum wage as provided
in this Code. Provided, however, that these rates shall be subject
to readjustments by the Administrator if the adjustments made by
an employer are not suitable in obtaining uniformity for this in-
dustry. Within 30 days after the effective date each employer shall
report to the Administrator through the Code Authority, all such
readjustments made by him since June 10, 1933.
4. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
5. An employer shall make payment of all wages due in lawful
currency or by negotiable check, therefor payable on demand.
Wages shall be paid at regular periods. These wages shall be ex-
empt from any payments for pensions, insurance, or sick benefits
other than those voluntarily paid by the wage earners.
14
6. No employer or his agent shall accept any rebate directly or
indirectly on such wages or give anything of value or extend favors
to any person for the purpose of influencing rates of wages or the
working conditions of his employees.
7. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below the minimum established by this 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 hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons en>ployed by Mm.
Article V — General Labor Provisions
1. No person under sixteen (16^ years of age shall be employed in
the industry, nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator before Janu-
ary 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 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.
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 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, ap-
proved 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 regu-
lating the age of employees, wages, hours of work, or health, fire,
or general conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the p)urposes of the Act.
7. Each employer shall post in conspicuous places full copies of
this Code.
8. Every employer shall provide for the health and safety of
his workmen. He shall comply with all National, State, and local
ordinances and provisions of safety and health, and to protect his
employees by Workmen's Compensation Insurance, according to the
amounts required in the State of jurisdiction or the United States
Employees' Compensation Insurance, if that State has not estab-
lished a compensation scheme for this industr3^ A safety and health
manual is to be submitted by the Code Authority to the Adminis-
trator within six (6) months after the effective date of this Code.
15
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.
(a) The Code Authority shall consist of five members of the
industry, four members of which shall be elected from the member-
ship of the National Screen Institute, and one member of which shall
be elected by members of the industry who are not members of the
Institute, if any. The Administrator in his discretion may appoint
not more than three additional nonvoting members of the Code
Authority as his representatives, without expense to the Industry.
(b) 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 or selection of the Code
Authority.
2. Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall: (a) Impose no inequitable restrictions on membership, and
(b) submit to the Administrator true copies of its articles of associa-
tion, 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.
3. The Code Authority shall have the following duties and powers
to the extent permitted by the Act, subject to the right of the Ad-
ministrator on review to disapprove or modify any action taken by
the Code Authority :
(a) The Code Authority may adopt such rules and take such ac-
tion and conduct such investigations as may be necessary in accord-
ance with law to effectuate this Code and to that end may establish
subcommittees and subordinate, occupational, state, regional, or local
administrative committees and prescribe such duties, rules, and regu-
lations as it deems necessary to carry out the purposes of this Code
and the National Industrial Recovery Act.
(b) The Code Authority or their delegated representatives shall
have power from time to time to require each member of the Indus-
try to furnish to the Code Authority such information and reports
concerning purchases, hours of labor, rates of pay, and such other
statistical information as may be necessary or proper to support
the provisions of this Code.
4. The Administrator may cancel or modify any order, regula-
tion, or other action of the Code Authority in order to effectuate the
purposes of the Act and the provisions of this Code, either on his
own initiative or on appeal.
5. 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 neces-
sary for the purposes recited in Section 3 (a) of the Act.
16
6. Any member of the Industry is eligible for membership in the
Code and there shall be no inequitable restrictions on such mem-
bership.
7. 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.
8. The Code Authority shall cooperate with the Administration
in regulating the use of the N.R.A. Code Insignia solely to those
employers who have agreed to, and are complying with, this code.
9. The Code Authority shall have the power to initiate, consider,
and make recommendations for the modification or amendment to
this Code.
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 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, substance, character, nature, origin, size, finish, or
preparation of any product of the industry, or otherwise.
2. Misrepresentation 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 otherwise, whether concerning the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepa-
ration of any product of the industry, or the credit terms, values,
policies, 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 or permit to
be given, or offer to give, money or anything of value to agents,
employees 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 prin^
cipals 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. Interference loith Contractual Relations. — Maliciously inducing
or attempting to induce the breach of an existing oral or written con-
tract between a competitor and his customer or source of supply, or
interfering with or obstructing the performance of any such con-
tractual duties or services.
5. Secret Rebates. — The secret payment or allowances of rebates,
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or the secret extension to certain pur-
17
chasers of special services or privileges not extended to all pur-
chasers on like terms and conditions.
6. Giving of Prises^ Premiums^ or Gifts. — The offering or giving
of prizes, premiums, or gifts in connection with the sale of products,
or as an inducement thereto, b}^ any scheme which involves lottery,
misrepresentation, or fraud.
7. Defamation. — The defamation of competitors by falsely imput-
ing 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.
8. Threats of Litigation. — The publishing or circularizing of
threats or 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.
9. 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 otlier unfair method.
10. Bid Peddling. — The practice commonly known as " bid ped-
dling " or " bid shopping " are recognized as unfair and are pro-
hibited. Bid peddling in effect means the offering by the bidder prior
to the making of an award of a substitute bid at a price lower than
the one originally quoted without a commensurate decrease in the
requirements of the job.
11. Independent Quotations. — Where any member of the Industry
quotes on other products in conjunction with all-metal screens, fail-
ing to include as a part of his quotation the following statement:
" The prices made on the various products in this quotation are made
independent of each other and we/I will accept a contract for insect
screens herein quoted irrespective of whether we/I receive a contract
for any other commodity quoted or not."
12. Submitting Bids. — (a) Submitting either directly or indirectly
more than one bid or quotation on any specified project, or revising
such bid or quotation except in the event of a material change in the
the plans and specifications of such project.
(b) "Where products outside of the industry form part of any
specifications, failing to make separate quotations for products of
the industry.
13. Selling below cost, except to meet the actual competition of
the loAver cost of another mem-ber of the industry. Cost, for the
purpose of this paragraph, shall be determined in accordance with
a standard system of cost accounting established by the Code
Authority and approved by the Administrator.
14. Failing to comply with the following provisions for publica-
tion of prices. — (a) Each member of the Industry shall within ten
(10) days after the effective date of this Code publish a complete list
of his standard items showing all prices, terms, and discounts to the
different classes of trade and copies of this price list and /or discount
sheets published in accordance with this paragraph shall be filed with
the Code Authority. The Code Authority shall immediately send
copies thereof to all other memliers of the Industry. Revised price
lists and/or discount sheets may be filed any time thereafter with the
Code Authority by any such member, to become effective on the date
18
specified therein, but such revised price lists and/or discount sheets
shall be filed with the Code Authority ten (10) days in advance of
said effective date.
(b) Copies of revised price lists and/or discount sheets with no-
tice of the effective date specified therein shall be immediately sent
to all members of the industry who thereupon may file, if they so
desire, revisions of their own published price lists and/or discount
sheets in order to meet said revised price lists. The said revisions
shall become effective upon the date when the said revised price lists
and/or discount sheets first filed shall go into effect.
(c) No member of the industry shall sell directly or indirectly by
any means whatsoever any product of the industry at a price lower,
or at a discount greater, or on more favorable terms of payment,
than those provided in his published price lists and discount sheets.
15. Other Unfair Practices. — The following are also prohibited.
(a) Enticement of competitor's employees.
(b) Deliveries not conforming to sample or order.
(c) Deviation from standards of the finished product as may be
established by the industry and approved by the President.
(d) Wilfully misrepresenting market conditions in order to
influence sale.
(e) Substitution of merchandise inferior to that called for in the
specifications.
(f ) Omitting parts called for in specifications.
16. Nothing in this Code shall limit the effect of any adjudication
by the Courts or holding by the Federal Trade Commission on com-
plaint, 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 of this Code.
Article VIII — General
1. No provision in this Code shall be interpreted in such a way as
to permit conduct or operations tending to promote monopolies or to
eliminate or oppress small enterprises, or to discriminate against
them.
2. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or limitation 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.
3. Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in the circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code or ad-
ditional Codes will be submitted for the approval of the President to
prevent unfair competition in prices and other unfair and destructive
competitive practices and to effectuate the other purposes and policies
of Title I of the National Industrial Recovery Act consistent with
the provisions thereof.
19
Article IX — Price Increases
^Yliereas the policy of the Act to increase real purchasing power
will be made imi^ossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual cost should
be delayed. But when made such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.
Article X — Effective Date
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 112.
Registry No. 1153-1-01.
O
Approved Code No. 113
CODE OF FAIR COMPETITION
FOR THE
LIMESTONE INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Limestone 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
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,
Novemler IJ^, 1933.
20175° 29G-91 34 (21)
November 10, 1933.
The PREsroENT,
The 'White Ecmse.
Sir : This is a report on the Code of Fair Competition for the
Limestone Industry in the United States, a hearing on which was
conducted in Washington on the nineteenth of September 1933, in
accordance with the provisions of the National Industrial Recovery
Act.
pRO^asioNS or the code as to wages and hours
This Code provides for a maximum workweek of forty (40)
hours as averaged over three months' periods, provided that no
employee shall work more than forty-eight (48) hours, or six (6)
days, in any one week, nor more than eight (8) hours in any twenty-
four (24) hour period. Exceptions to these limitations on working
hours are provided for salesmen, employees engaged in professional,
executive, administrative, or supervisory work, when earning at
least $35.00 per week. Further exceptions are provided for watch-
men, firemen, plant engineers, truckmen, shipping crews, plant main-
tenance crews, and those engaged in emergency work, for which
occupations somewhat wider latitudes are permitted.
This Code provides for a minimum wage of thirty-eight (38)
cents per hour, except that in southern states the wage may be as
low as that prevailing on July 15, 1929; provided that in no case
less than thirty (30) cents per hour shall be paid. These minimum
rates are to be in effect where employees are compensated on the
basis of a time-rate or on a piece-work performance. Provisions are
included for maintaining wage differentials where equitable.
The above wage requirements do not apply to the aged or physi-
cally infirm, who are limited in number and are to receive at least
eighty (80%) percent of the above rates of pay. Accounting, cleri-
cal, office, or other employees are to be paid not less than $14.00 per
week, except that a limited number of apprentices may be employed
for limited periods for not less than eighty (80%) percent of this
weekly wage.
No persons under sixteen (16) years of age shall be employed nor
anyone under eighteen (18) years of age at hazardous occupations.
economic aspects of the code
In 1932 only six and one half million cubic feet of Building Lime-
stone was produced in this country while the volume of produc-
tion in 1929 was estimated at approximately eighteen million cubic
feet. This serious decrease in volume coupled with the disastrous
competitive practices has brought about a proportionate reduction
in the Industry's income.
It is estimated that during 1929, 36,000 workers were employed at
the quarries and on outside works for a period of 257 working
(22)
23
days, while in 1932, an opportunity of employment was extended
to only 22,000 men for a period of 183 working days. In many
cases employees have been forced to work long hours for very low
wages.
The Industry includes both the quarrjdng and fabrication of
Limestone and since the fabrication is often done near the building
site, fabricating plants are located in all important towns and cities
throughout the United States. It is evident, therefore, that improve-
ment within the industry will be reflected in the business areas as
well as in the quarrying districts.
Although it is impossible to accurately estimate the increase in
employment resulting from an application of the Code provisions, it
is submitted that the maximum working hours provisions, the sta-
bilization of the earnings of labor and the elimination of unfair trade
practices will be reflected in the material improvement of labor and
competitive conditions within the Industry.
FINDINGS
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-
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
Limestone Industry ; and that
(c) The Code as recommended is not designed to promote
monopolies or to eliminate or oppress small enterprises and will
not operate to discriminate against them, and will tend to effectuate
the policy of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be immediately
adopted.
Respectfully,
Hugh S. Johnson, Administrator.
CODE OF FAIR COMPETITION
FOR THE
LIMESTONE INDUSTRY
Article I — Purposes
To effectuate the policies of Title I of the National Industrial
Kecovery Act, the following provisions are established as a Code of
Fair Competition for the Limestone Industry and are binding upon
every member thereof.
Article II — Definitions
Section 1. The term " industry ", as used herein, includes the
quarrying and/or fabricating of limestone for use as architectural
building stone, and such branches or subdivisions thereof as may from
time to time be included under the provisions of this Code.
Sec. 2. Employee. — The term " employee ", as used herein, includes
anyone engaged in the industry in any capacity receiving compensa-
tion for his services, irrespective of the nature or method of payment
of such compensation.
Sec. 3. Employer. — The term " employer ", as used herein, includes
anyone by whom any such employee is compensated or emploj^ed.
Sec. 4. Member of the Industry. — The term " member of the in-
dustry ", as used herein, includes anyone engaged in the industry as
above defined, either as an employer or on his own behalf.
Sec. 5. Effective Date. — The term " effective date ", as used herein,
shall mean the tenth day after the approval of this Code by the Presi-
dent.
Sec. 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
under Title I of said Act.
Article III — Hours
Section 1. Hours. — On and after the effective date, except as here-
inafter set forth, no employee shall work or be permitted to work
in excess of forty (40) hours per week averaged over three months'
periods; or in excess of forty-eight (48) hours in any one week or
in excess of six (G) days in any one week, or in excess of eight (8)
hours in any twenty-four (24) hour period.
Sec. 2. The maximum hours specified in this article shall not apply
to salesmen when earning more than $35.00 per week, employees
engaged in professional, executive, administrative, or supervisory
work when earning more than $35.00 per week.
The maximum hours specified in this article shall not apply to
watchmen. On and after the effective date, no watchmen employed
in this industry shall work or be permitted to work in excess of
(24)
25
twelve (12) hours in any 24-liour period, or in excess of C4 hours
in any one week. The maximum hours specified in this article shall
not apply to firemen or to plant engineers, who shall be permitted
to work not more than 2 hours a day in excess of the maximum hours
prescribed in Section 1 of this article. The maximum hours pre-
scribed in this article shall not apply to truckmen, shipping clerks,
plant-maintenance crews, and those engaged in cases of emergency
work requiring the protection of life or property. Such employees
shall work not more than six days in any one week, nor more than
48 hours in any one week, and shall be compensated at one and one
third times their regular rate of hourly pay for all time worked in
excess of 8 hours in any 24-hour period.
Sec. 3. Total Hours. — No employee shall be permitted to work for
a total number of hours in excess of the number of hours prescribed
herein for each week and each day, whether employed by one or more
employers.
Article IV — Wages
Section 1. Rates of Pay. — (a) Except as hereinafter set forth,
no employee shall be paid at less than the rate of thirty-eight cents
per hour, except that in the states listed below where the established
rate of pay for the same class of work on July 15, 1929 was less than
thirty-eight cents per hour, the hourly rate shall be not less than
that of July 15, 1929, and in no event less than thirty cents per hour.
(Alabama, Arizona, Arkansas, Florida, Georgia, Kentucky, Louis-
iana, Mississippi, New Mexico, North Carolina, Ohio (south), Okla-
homa, South Carolina, Tennessee, Texas, Virginia, West Virginia.)
(b) The amounts by which hourly wage rates in the higher paid
classes of employees exceeded wages in the lower paid classes of
employees on July 1, 1933, shall be at least maintained where equi-
table, having in view the then existing differentials in hourly wage
rates.
(c) The foregoing paragraph (a) establishes a guaranteed mini-
mum rate of hourly pay, regardless of whether the employee is com-
pensated on the basis of a time rate or on a piecework performance.
(d) No employer shall reclassify employees so as to defeat the.
purpose of the Act.
(e) All employers in the industry shall post in their quarries
and/or mills or places of doing business, copies of the minimum wage
and maximum hour provisions as set forth in this Code.
Sec. 2. Privileged Employees. — Employees who by reason of old
age or physical infirmities are incapable of normal productive eifort,
may be compensated at a rate not less than eighty (80) per cent of
the^ foregoing minimum rates of pay, but the number of such em-
ployees shall not at any time exceed eight percent (8%) of the total
number of employees.
Sec. 3. Salaried Employees. — No accounting, clerical, office, or
other employees paid on a regular weekly or monthly basis shall be
paid at less than the rate of $14.00 per week; except that office ap-
prentices (for a period not to exceed six (6) weeks in the Industry),
office boys, and office girls paid on a regular weekly or monthly basis
may be paid not less than eighty percent (80%) of the minimum
weakly rate provided in this section.
26
Sec. 4. A?'ea Agreements. — Minimum rates of wages and maximum
hours of labor may be established nationally or for a region or local-
ity by mutual agreements reached through bona fide collective bar-
gaining between representative national, regional, or local groups of
employers and employees. In no event shall such minimum rates
of wages be less than those established in this article, nor shall such
maximum hours of labor be more than those established in Article
III of this Code. Such area agreements shall be effective upon
approval by the President after such notice and hearing as he may
require.
Article V — General Labor Provisions
Section 1. Child Labor. — No person under sixteen (16) years of
age shall be employed in this industry, nor anyone under eighteen
years of age at operations or occupations hazardous in nature 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 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. 2. Rights of Labor. — (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 employers of labor, or their agents, in the designation of
such representatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing.
(c) Emploj^ers shall comply with the maximum hours of labor,
minimum rat^s of pay, and other conditions of employment, approved
or prescribed by the President.
(d) Where the rates of pay and maximum hours of labor for any
of the various classifications of Avorkers in the industry are now in
effect by virtue of contracts entered into by collective bargaining be-
tween the employers and the employees, such rates of pay and maxi-
mum hours of labor shall be maintained during the periods covered
by the respective contracts ; provided that the rates of pay provided
in such contracts are not less than, nor the maximum hours of labor
provided in such contracts more than, the minimum rates of pay and
the maximum hours of labor established in this Code.
Article VI — Administration
Section 1. Code Authority. — (a) To further effectuate the poli-
cies of the Act a Code Authority is hereby set up to cooperate with
the Administrator in the administration of this Act.
(b) The National Control Committee of the National Limestone
Industry, Associated, as that committee is from time to time con-
stituted, is hereby established as the Code Authority for the In-
27
dustry. The Government may be represented on said committee
by (from 1 to 3) members, without vote, to be appointed by
the Administrator. Such governmental representatives will be ap-
pointed for terms of from six months to a 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.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall: (1) Impose no inecjuitable restrictions on membership, and
(2) Submit to the Administrator true copies of its articles of asso-
ciation, bylaws, regulations, and any amendments when made thereto,
together with such other information as to membership, organi-
zation, 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 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
appropriate modification in the method of selection of the Code
Authority.
(e) The Code Authority shall have the following specific power
and duties, subject to the review and disapproval or modification by
the Administrator:
(1) To establish such subcommittees and state, regional, or local
committees as it may deem necessary.
(2) To obtain from all members of the industry sworn or un-
sworn reports, periodically, or as often as it may direct, on wages,
hours of labor, conditions of employment, number of employees, or
other conditions in the industry pertaining to the provisions of this
Code.
(3) In addition to information required to be submitted to the
Code Authorityj there shall be furnished to governmental agencies
such statistical information as the Administrator may deem neces-
sary for the purpose recited in Section 3 (a) of the National Indus-
trial Recovery Act.
(4) To submit to the Administrator from time to time such
recommendations, based upon conditions in the industry, as they
may develop, as in its judgment will further effectuate the policies
of the Act, or will improve the operation of this Code or any sup-
plemental Codes proposed or made a part of this Code. Any such
recommendations, when approved by the President, after such no-
tice and hearing as he may prescribe, shall become effective as part
of this Code. The Administrator may, if he so desires, submit such
recommendations to the Authority or Authorities if and when estab-
lished in Codes of the Construction Materials Industry and of the
various functions or subdivisions of the Construction ISIaterials
Industry.
(5) To establish its own rules for the conduct of its own business.
(6) Members of the 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
28
complying with the requirements of this Code and sustaining their
reasonable share of the expense of its administration. The reasonable
share of the expenses of the 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.
(7) To establish rules, methods, and practices for filing bids,
which upon approval by the Administrator, shall be used by all mem-
bers of the industry',
(8) To coordinate its acts with the administrative agency if and
when established under the Code of Fair Competition for the Con-
struction Materials Industry.
(9) To prepare and submit, with the cooperation of the United
States Public Health Service, not later than January 1, 1934, a
report on hazards affecting employees in the industry, with recom-
mendations for their improvement or correction, which recommenda-
tions, upon approval by the President, and after such hearing as he
may prescribe, shall become effective as part of this Code.
Sec. 2. The Code Authority is directed to cooperate with the
Administrator as a planning a^nd fair practice agency for the lime-
stone industry. The Code Authority may from time to time present
to the Administrator recommendations based on conditions in the
industry as they may develop from time to time which will tend to
effectuate the operations of the provisions of this Code and the
policy of the National Recovery Act and in particular along the
following lines :
1. Recommendations for the requirement by the Admmistrator
of registration by members of the industry of their productive
machinery. * n • •
2. Recommendations for the requirement by the Admmistrator
that prior to the installation of additional productive machinery by
persons engaged or engaging in the limestone industry, except for
the replacement of obsolete or retired machinery, such persons shall
secure certificates that such installation will be consistent with ef-
fectuating the policy of the National Industrial Recovery Act dur-
ing the period of the emergency.
3. For the granting or withholding by the Administrator of such
certificates as so required bv him. . .
Sec. 3. Supplemental codes may be submitted to the Administra-
tor by subdivisions of the industry through the Code Authority
established herein or through the Code Authority established by the
Code of Fair Competition for the Construction Materials Industry,
when consistent with this Code and other rules and regulations
promulgated by the President and when within the spirit and pur-
pose of the Act, but nothing herein shall be construed to prevent a
trade association or other representative group from submitting a
code directly to the National Recovery Administration. Any such
supplemental codes shall provide for minimum rates of pay not less
than, and for maximum hours of work not more than, the limitations
established therefor in this Code. _ , n n x
Sec. 4. Selling Methods.— {sl) The Code Authority shall deter-
mine with the approval of the Administrator a formula for arriving
at the allowable cost for the various products of the industry, below
which it shall be an unfair practice to sell.
29
(b) Any member of the industry selling block and sawed stone
shall publish price schedules and shall file the same with the Code
Authority or with such agencies as it may designate. Notice of
changes in prices so published and filed shall be given the Authority
or its agency not less than six (6) days before such changes become
effective. Prices so published and filed shall be maintained by each
member of the industry filing the same.
(c) Members of the industry who both quarry and fabricate lime-
stone shall charge themselves as fabricators the prices for block
and sawed stone which they have filed with the Code Authority.
Sec. 5. Trade Practices. — The Code Authority shall study the
trade-practice provisions, paragraphs (a) to (d) below, and the
operation thereof, and shall make any recommendation from time
to time to the Administrator which it deems desirable for modifica-
tion or addition thereto which upon his approval, after such hearing
as he may prescribe, shall become a part of this Code and shall have
full force and effect as provisions hereof.
(a) Collusion between the awarding authority and any member
of the industr3^ or between different such members in preparation
of bids, shall be an unfair method of competition.
(b) Submitting of bids unless and until the awarding authority
inviting the bids makes available complete plans and/or specifications
and other pertinent information in order that the bidder may prepare
a complete estimate or bid in accordance therewith, shall be an
unfair method of competition.
(c) Extending of any rebates, refund allowance, discount, com-
mission or service privilege in anj^ form, except to all purchasers
under like terms and conditions, shall be an unfair method of
competition.
(d) 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 customers
or prospective customers shall be an unfair method of competition.
Article VII — Modification
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 Act, from time to time to
cancel or modify any order, approval, license, rule, or regulation
issued under Title I of the 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 bj" 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 on application to the Administrator and such
notice and hearing as he shall specify, and to become effective on
approval of the President.
30
Article VIII — Monopolies
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
Article IX — Price Increase
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consmiimation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
crease 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 X — Bidding Practices
Whenever a member or members of the Industry, acting as an
awarding authority, receive competitive bids, such member or mem-
bers of Sie Industry shall not engage in the practice of " Bid Ped-
dling." (Note—" Bid Peddling " is defined as the giving or receiv-
ing or attempting to give or receive information, true or false, regard-
ing a competitor's estimate or bid in order to gain or give an unfair
advantage.)
Article XI — ErrECTi\'E Date
This Code shall become effective on the tenth day after its
approval by the President.
Approved Code No. 113.
Registry No. 1026-09.
o
Approved Code No. 114
CODE OF FAIR COMPETITION
FOR THE
SCIENTIFIC APPARATUS INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Scientific Apparatus 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 section 3 of the said Act have been
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 U, 1033.
29176° 296-92 34 (31)
November 9, 1933.
The President,
The White B.ouse.
Sir: A public hearing on the Code of Fair Competition for the
Scientific Apparatus Industry of the United States, submitted by
the Scientific Apparatus Makers of America, located at 12 South
Twelfth Street, Philadelphia, Pennsylvania, was conducted in Wash-
ington, D.C., on the 21st of September, 1933, in accordance with the
provisions of the National Industrial Recovery Act. The Associa-
tion claims to represent 80 percent of the industry.
The maximum hours provided in the Code are 40 per week, with
ample provision for emergencies and peak periods, and providing
time and one half for all hours in excess of the maximum for produc-
tive employees. The average w^orkweek in 1928 was 45 hours; in
1929 it was approximately 48 to 50 hours.
The minimum wage provided in the Code is $15.00 per week. The
Code contains a clause providing for an equitable adjustment of
wages above the minimum subsequent to June 16, 1933.
The inclusion of the products covered by this Code is logical from
the standpoint of the trade, but because the various products in-
cluded in this Code cut across all Census Classifications, including
some under the Code which are not included in Census Classifications
and excluding others which are included as Scientific Apparatus, it
is impossible to get any definite statistical data regarding the
industry.
There were about 16,000 employees in 92-94 establishments re-
ported during 1929. Approximately 12,000 were employed in 110
concerns reporting in August 1933. To raise employment to the
level of 1929 or 1931, the peak production years in this industry,
would require the adoption of 18 to 24 hours per week, depending
upon which year was chosen. Such a limitation would undoubtedly
be unjust to the manufacturers and to the workers. The increase in
prices to the consumer would be prohibitive, should such provisions
be adopted.
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 Scientific Apparatus Makers of America, the applicant
group herein, imposes no inequitable restrictions on admission to
membership and is truly representative of the Scientific Apparatus
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
(32)
33
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 reA'ised represents an effective, practical, equitable
solution for this industry and its approval as herewith submitted is
recommended.
Respectfully,
Hugh S. Johnson,
A dministrator.
CODE OF FAIR COMPETITION
FOR THE
SCIENTIFIC APPARATUS 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 Scientific Apparatus 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
1. As used herein, the term "Scientific Apparatus Industry",
shall be taken to mean the manufacture for sale and the sale as units
by the manufacturer, and/or the distribution of scientific and
technical apparatus and equipment; such as —
Astronomical Apparatus.
Aviation Instruments.
Bacteriological and Biological Apparatus.
Chemical Apparatus and supplies (for laboratory use only).
Combustion Regulators.
Combustion Measuring Instruments.
Controllers for Pressure, Temperature, Level, etc.
CO and CO2 Meters.
Electrical Measuring Instruments.
Flow Meters and Fluid Meters.
Gas Analysis Instruments.
Glassware, optical and fabricated laboratory.
Hardness Testers.
Hydrometers.
Hygrometers and Humidity Instruments.
Laboratory Equipment, Furniture, and Accessories.
Liquid Level Gages, industrial
Metallurgical Instruments
Meteorological Instruments
Nautical Instruments
Operation Recorders
Optical Instruments
Physical, Physiological, and Psychological Instruments and Apparatus
Porcelain (Laboratory and Technical)
Pressure and Vacuum Gages
Physical Testing Instruments and Apparatus
Pyrometers
Recording, Indicating, and Controlling Instruments
Regulators
Resistance Meters
Scientific and Analytical Balances
Surveying, Engineering, and Drafting Instruments and Blueprint and
Similar Reproduction Papers
Tachometers, industrial
Thermometers
(84)
35
and like instruments and equipment for scientific or technical use;
but exclusive of opthalmic instruments.
(a) The provisions of this Code shall not be so interpreted as to
conflict with the provisions of the Retail Code.
2. The term " emploj-ee " 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,
supervisors, and foremen when actually engaged in productive work.
3. The term '' employer " as used herein includes any person en-
gaged in the manufacture and/or distribution of the products of
the Scientific Apparatus Industry.
4. The term '' member of the industry " as used herein includes
anyone engaged in the industry as defined above.
5. 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. No emploj'ee, except outside salesmen, engaged by any employer
in any office, or in any accounting, clerical, service, or sales depart-
ment shall be employed for more than forty (-lO) hours in any one
week, except as provided in subparagraphs 2, 3, 4, 5, and 6.
2. No factory or mechanical worker or artisan shall be employed
for more than a maximum week of forty (40) hours, except as pro-
vided in sub-paragraphs 4 and 6.
3. The maximum hours fixed in the foregoing paragraphs shall not
apply to employees in a managerial or executive capacity, nor to
planners, technical and research engineers who receive $35.00 per
week or over.
4. Employees on emergency repair and maintenance work, or in
special instances where the restrictions of hours of highly skilled
workers would unavoidably reduce production or limit the work
available to other workers, may work not more than fortj^-eight (48)
hours per week, provided that at least time and one half shall be
paid for hours worked in excess of forty (40) hours per week.
5. Watchmen, janitors, and elevator operators may be employed in
pairs or shifts and shall work not more than thirty-six (36) and
lorty-eight (48) hours on alternate weeks or an average of forty-two
(42) hours per week per man.
6. To care for seasonal or peak demands employees mentioned in
paragraphs 1 and 2 may work for not more than forty-eight (48)
hours per week for periods aggregating not more than six weeks in
any six months' period, provided that at least time and one half shall
be paid to employees mentioned in paragraph 2 for all hours per
week over forty (40).
7. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours herein prescribed,
whether he be employed by one or more employers.
86
Article IV — ^Wages
1. No employee shall be paid less than at the rate of fifteen dollars
($15.00) per week for forty (40) hours (or thirty-seven and one half
cents (371^^5) per hour), except as provided in paragraphs 2 and 3.
2. Factory, mechanical workers, and artisans shall be paid not less
than forty cents (40^) per hour unless the hourly rate for the same
class of work on July 15, 1929, was less than forty cents (40^) per
hour, in which latter case employees shall not be paid less than the
hourly rate on July 15, 1929, and in no event less than 30^ per hour
except as provided in paragraph 3 of this Article.
3. Learners, office boys and girls under eighteen (18) years of age,
and old or partially disabled employees shall be paid not less than
80 percent of the minimum wages set forth in paragraphs 1 and 2
of this Article ; but the maximum number of learners and office boys
and girls and old or partially disabled employees shall not exceed
in any calendar month five percent of the total number of employees,
except that where the total number of employees is less than eighty,
four employees may be so classified, and where the total number oi
employees is less than twenty-five (25), three employees may be so
classified.
4. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on time rate, or piecework
performance, or other basis.
5. Employers shall endeavor to adjust the compensation of em-
ployees receiving less than thirty-five dollars ($35.00) per week in
equitable relation to the minimum rates provided in this Article,
unless such adjustments have been made subsequent to June 16, 1933.
6. Female employees performing the same work as male employees
shall receive the same rates of pay as male employees.
T. All home work is prohibited after the effective date of this Code.
Article V — General Labor Provisions
1. No person under sixteen 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
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 certifi-
cate 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.
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 emploj^ers 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
37
4. Employers sliall 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 the employer
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 j^ost and keep posted in conspicuous
places full copies of the wage and hour provisions of this Code.
A rticlp: Yl — Administration
To further effectuate the policies of the x\ct a Code Authority
is hereby established to cooperate with tlie Administrator in the
administration of this Code.
Section 1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of nine members of the
industry or such other number as may be approved from time to time
by the "Administrator, to be selected by a fair method of selection.
The President, in his discretion, may appoint not more than three
additional members, without vote, to represent the Administrator or
such groups or interests as may be designated.
(b) The Code Authority shall be selected from the following sec-
tions of the Scientific Apparatus Industry :
Industrial Instruments
Clinical Thormometers
Automatic Controls
Optical Instruments
Aeronautical, Nautical, and Jlililary
Instruments
(c) As conditions may warrant or make desirable, new sections
may be added, or any or all of the above-mentioned sections may be
combined or abolished.
(d) Each section shall elect its own Executive Committee an-
nually, and as the general planning and coordinating agency of the
particular section, it shall be charged with the following duties:
(1) The election of a Manager through whom it may discharge
any of its functions, the manager to be representative of the Section
in all dealings with Governmental Authorities and to make such
agreements with such Authorities in behalf of the Section as may
be advisable and/or necessary, subject to rules worked out by the
Sectional Executive Committee.
(2) Receiving and transmitting to the Code Authority such re-
ports and records as may be necessary to effect the purposes of this
Code, such reports and records to be held in strict confidence by the
Manager and not to be accessible to any other member, except such
information as is authorized for distribution to the industry or to
the public.
(e) Each Section may be independent and self-governing with
respect to all conditions and problems relating exchisivcly to the
Laboratory Suppliers
Laboratory Furniture
Surveying, Drafting, Coaters
38
said section, subject to tlie approval of the Code Anthoritv and the
Administrator.
(f) Proposals in respect to matters affecting more than one sec-
tion may be initiated by any Section affected, and shall be sub-
mitted for consideration to the Code Authority and the Sectional
Executive Committees affected thereby, and with the approval of
the Administrator such proposal shall' be binding upon the propos-
ing Section and all other Sections thereby affected.
Sec. 2. The Scientific Apparatus Makers of America shall be the
agency under the Code Authority for administering the provisions
of this Code. The Association shall (a) impose no inequitable re-
strictions on membership, and (b) submit to the Administrator true
copies of its -Articles of Association. By-laws. Resulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the Adminis-
trator may deem necessarj^to effectuate the purposes of the Act.
Sec. 3. 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 mav provide such hearings
as he may deem proper ; and thereafter, if 'he finds that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, mav require an appro])riate
modification in the method of selection of 'the Code Authority.
Sec. 4. The Code Authority shall have the following duties and
powers to the extent permitted by the Act, subject to the right of the
Administrator on review to disapprove or modifv anv action taken
by the Code Authority :
(a) Collect and receive reports: such reports to be held in con-
fidence, except for such information as is authorized for distribution
to the entire industry.
(b) Forward the necessary substance of reports to the President,
as may be required by the Administrator.
(c) Make recommendations to the Administrator.
(d) Administer this Code of Fair Practices within the industry.
(e) Administer such fiscal policy and affairs within the industry
as may be necessary to the formulation and continued application
of this Code.
Sec. 5. No inequitable restrictions on admission to membership in
the "Scientific Apparatus Makers of America "', or any other trade
association 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
organized group upon compliance with the provisions of the bv-laws
relating to membership, provided that any person applyino- 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 administration.
Such members of the industry who do not choose to become members
of any trade association or organized group may participate in the
activities of the Code Authority as herein proA^ided by paying to
the Code Authority such proportionate part of the cost of code
developnient and administration as the Code Authority, subject to
the Administrator's approval, shall prescribe as fair and equitable.
39
Sec. 6. In addition to the information required to be submitted to
the Code Authority there shall be furnished to the Administrator
such statistical information as he may deem necessary for the pur-
poses recited in Section 3 (a) of the Act.
Article VII — Trade Practices
1. The following provisions shall apply to all sections of this
industry but only to business done in continental United States and
its territories, and not to its insular possessions, and not to exports to
foreign countries.
2. Pnce Lists and Discount Sheets. — When the ]Manager deter-
mines that it is the general practice to sell any specified product on
the basis of published net price list, or price lists with discount sheets,
each employer shall —
(a) Within ten days after notice from the Manager, file with him
a statement of sales policy, including prices, discounts, and condi-
tions of sale to all recognized classes of buyers.
(b) Not file any net price on any such product which is below
the cost of production as ascertained by a uniform cost-accounting
sj'stem to be adopted by the section and approved by the Adminis-
trator; provided, however, that any member of the section may sell
below his cost of production to meet price competition in any specific
instance by selling his product at a price not less than the lowest
price of a comparable item on file with the Manager.
(c) When prices or discounts are changed, revised price lists
and/or discount sheets shall be filed with the Manager, to become
effective within a reasonable time, but in no case later than fifteen
(15) days after receipt of said price list and/or discount revisions,
3. Standard forms and vutliods of hidding. — Each section may
from time to time adopt (a) standard forms of bids, proposals, con-
tracts, guarantees, terms of sale, and similar standard forms, and
(b) standard methods of bidding, settlement of insolvent accounts,
and similar items. When such standard forms or methods are
adopted by the Section and approved by the Administrator the
scope and extent of their use shall be as specified, and they shall be
commonly and uniforml}' used by all employers in the section.
4. These practices described in the following subparagraphs are
declared to be unfair.
(a) Bids and quotations. — Xo employer shall:
(1) Quote a total price on any schedule of products which does
not show, or which is lower than the sum of the regular unit prices
of the articles comprising the schedule; unless the reduction is in
accord with his regularly published discounts and/or terms;
(2) Attempt to have all bids rejected to the end that a more ad-
vantageous position may be secured in the new bidding;
(3) Offer credits, allowances, or discounts, for the purpose of
altering retroactivel}^ a quoted price or of creating price discrimina-
tions;
(4) Sell or offer for sale special products which are not covered
by his published price list, at net prices more favorable to the pur-
chaser than the lowest published net price of a similar stock item
of comparable grade.
40
(5) Sell, or offer for sale, dropped lines, obsolete products, or
inventories which must be converted into cash, except as approved
by the Manager. Damaged or discontinued items may be sold
singly and not as part of a bid, but no such products shall be included
in a bid with regularly listed items.
(6) Submit deceptive or misleading bids to secure the award as
low bidder and subsequently make changes in materials, finish,
transportation allowances, installation charges, or any other changes
from original bid or proposals.
(7) Guarantee a bid against a change in price bej'ond a maximum
of sixt}'^ days.
(b) Guarantees. — Xo employer shall promise a bettor performance
nor make a higher guarantee than experience in the art and his
experience will Avarrant.
(c) Special AUoivances. — No employer shall grant, or offer to
grant, secret rebates, refunds, or special privileges.
^d) Commercial Bribery. — No employer shall —
(1) Gives or offer to give money or other valuable considerations
to customers or prospective customers (or their agents or represent-
atives) for the purpose of influencing their good will or purchases,
or to employees of competitors; provided nothing herein shall be in-
terpreted as prohibiting free and general distribution of articles
commonly used for advertising.
(2) Pay fees, roj-alties, or other valuable consideration to any
persons in the employ of a ]5urchaser or prospective purchaser, for
the purpose of influencing the good will and/or purchases of such
employee or his or her employer.
(3) Emploj^ " local agents " to supplement regular salesmen, dis-
tributors, or resident agents with the intent of exerting improper
local influence on a prospective customer.
(e) Other Unfair Practices. — No emploj'er shall:
(1) Render a false or misleading invoice or credit.
(2) Induce or attempt to induce the breach of existing contracts
between competitors and their customers by an}^ false or deceptive
means whatsoever, or interfere with or obstruct the performance
of any such contractual duties or services, by any such means with
the purpose of unduly hampering, injuring, or embarrassing competi-
tors in their business.
(3) Deceitfully defame the character, ability, credit standing, or
other attributes of a competitor, or falsely disparage the quality
of his products or service.
(4) Deceitfully imitate the design, lot number, product number,
style pattern, trade mark, trade name, slogan, illustration, descriptive
text, or other marks of identification of any competitor's products.
(5) Publish false information regarding the products of his own
or of his competitor, by word of mouth or otherwise.
(6) Circulate threats of suit for infringement of patents or trade
marks among customers of a competitor for the purpose of harassing
and intimidating customers, and not in good faith.
(7) Accept bonds, stocks, or other evidences of ownership, of
doubtful value, in partial or full payment for employer's products,
unless such be accepted at their current open market value, or unless
accepted in settlement of insolvent accounts;
41
(8) Knowingly ship or deliver products which do not conform to
the samples submitted or representations made prior to securmg the
order.
Article VIII — Modification
1. This Code and all the provisions thereof are expressly made
subiect to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of Title I of the National
Industrial Recoverv 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 mochfy 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 appUcation to the Administrator and
such notices and hearing as he shall specify, and to become effective
on approval of the President, unless otherwise provided.
Article IX — Monopolies, etc.
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 policv 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 XI — Effective Date
This Code shall become effective on the second Monday after its
approval by the President.
Article XII — Supplementary Provisions
The following schedules (A, B, C, and D, inclusive) are supple-
mentary to, and constitute part of, the Code of Fair Competition for
the Scientific Apparatus Industry. Such schedules apply only to
those particular sections indicated by the specific headings.
Any provision of any supplementary Code, that may be incon-
sistent with the provisions of the General Code, shall prevail.
Approved Code No. 114.
Registry No. 1330—1—01.
SCHEDULE A
Supplementary Code for the Industrial Instrument Section
1. Bids and Quotations. — (a) No emplojer shall sell, or offer to sell, directly
or indirectly, any product of the industry covered by the provisions of the Gen-
eral Code, paragraph 3, Article VII, at a price lower or at a discount greater
or on more favorable terms of payment than those provided in his current
price list and discount sheets; except an employer may sell below his pub-
lished net price, but not below the lowest published net price filed with Man-
ager and then in effect, in order to meet existing competition on products of
equivalent design, character, quality, or specifications, provided a true copy
or abstract of such quotation shall, after the business has been placed or
definitely abandoned, be sent to the Manager, unless the bids have already been
oflicially made public.
(b) All quotations and/or billings specifying the labor of installation or
supervision of the product shall include a charge of not less than $15.00 per
man-day, or proportionate amounts thereof for portions of a day, plus travel-
ing expenses or a pro rata share of such expenses where more than one call
is made per day.
(c) It is the policy of the Industry that all bids, proposals, or contracts shall
be terminated within ninety (90) days after the effective date, or revised in
accordance with the provisions of this Code.
(d) Allowances for old apparatus taken in part payment for new shall be
subject to the following limitations :
(1) The old apparatus shall not exceed in quantity and shall be equiva-
lent in type to the new.
(2) The price allowed for the old apparatus shall not exceed 10 percent
of the prevailing price of like, new apparatus ; or if more than 10 percent,
shall be not more than the fair cash market value.
2. Terms of Sale.— The terms of sale of each employer shall be uniform and
uniformly applied. All quotations shall be f.o.b. shipping point or transportation
charges .shall be added. Ca.sh discounts shall not exceed one percent for cash
in ten days or less time. The Section p]xocutive Committee shall formulate,
and may from time to time amend, provisions covering terms of sale.
3. Warrant!/. — No employer shall guarantee more in regard to the material,
workmanship, or design of his equipment than is done by the following standard
warranty :
" We warrant each new instrument manufactured and/or sold by us to be
free from defects in material, workmanship, and design ; our obligation under
this warranty being limited to repairing or replacing any instrument or part
thereof which shall, within one year after delivery to the original purchaser,
prove by our examination to be thus defective."
4. Service Charges. — Unless the seller's product or instructions pertaining
thereto is at fault, when service is requested by the customer, a charge of not
less than $15.00 per man-day or proportionate amount thereof for a portion of
a day, plus traveling expenses, or a pro rata share of such expenses where more
than one call is made per day, must be made for adjustment or repair service.
(42)
SCHEDULE B
Sttpplementaby Code for the Clinical Thekmometer Section
The following rules are a part of this Code as regards the ethics of the
Industry. It is understood and agreed that violation of any rule is a viola-
tion of the Code and constitutes unfair competition.
article I — DEFINITIONS
1. A clinical thermometer blank is the complete clinical thermometer tube
blown, tested for scale and ready to be calibrated and sealed.
2. A blankmaker is one who manufactures clinical thermometer blanks.
article II STANDARDS
1. Bach clinical thermometer manufactured or sold by an employer shall
conform in all respects with Commercial Standards CS 1-32 issued by the
Bureau of Standards of the United States. The process of seasoning shall
be deemed to have commenced at the time at which the blank is finished.
2. Each clinical thermometer sold by an employer shall have permanently
etched upon it the name or trade name and/or trade mark of the employer
who engraves it as a finished instrument. Trade names and/or trade marks
for this purpose shall be recorded with the Manager of the Section for
identification. No clinical thermometer shall be marked with any other
name or mark except as othermse provided by State laws.
3. Each clinical thermometer must be accompanied by a certificate bearing
the manufacturer's name and guarantee that the clinical thermometer to which
it applies conforms to Commercial Standards CS 1-32 of the Bureau of Stand-
ards of the United States.
4. Blanks which are rejected by the purchaser for defects not possible of
repair shall be so marked by file, knife, or saw on the lens by such purchaser
as to make resale impossible. The vendor and purchaser shall first agree as to
the impossibility of repair.
5. No importing distributor shall sell or offer for sale any blanks, or finished
clinical thermometers on which the name of the manufacturer and country of
origin are not permanently and legibly etched.
6. Each employer shall file with the Manager, within thirty (30) days after
the effective date, a schedule of his minimum list prices with discounts from
same or net prices, for quantity or class of trade. No reduction of minimum
list prices with discounts from same or net prices shall be permitted while
same are in effect. It shall be permitted, however, to file new minimum list
prices with discounts from same, or net prices from time to time provided that
no sales at the new figure shall be effected until at least ten (10) days have
elapsed from the date of receipt by the Manager, of the revised minimum prices.
7. Each clinical thermometer blankmaker shall file with the Manager the
minimum selling price at which he sells blanks. All blanks shall be seasoned
for one month by the blankmaker, this provision to become effective on and
after January 1, 1934.
(43)
SCHEDULE C
Supplementary Code for the Laboratory Supplies Section
ABTICLB I — DETINITIONS
For the purposes of administering these rules, the following definitions apply :
1. A Consumer is an individual, firm, corporation, institution, establishment,
or a Federal, state, municipal, or other governmental department, purchasing
goods for his or its own use and consumption and not for resale.
2. A Dealer is a firm, corporation, or individual who carries a stock of laboi-a-
tory apparatus and supplies sufficient to offer a distribution service of obvious
economic value to the producer and to the consumer.
3. A Wliolcsalcr is a dealer who carries an adequate stock of laboratory
apparatus and supplies and who is authorized by manufacturers of trade-marked
or franchise items to carry out their distribution policies to other dealers, or a
dealer who sells merchandise under his own trade mark to other dealers for
resale.
4. A Manufacturer's Agent is a firm, corporation, or individual who is the sole
representative of a manufacturer, domestic or foreign, for a specified district.
ARTICLE II
1. The retail prices to all consumers shall be the same, both on open orders
and on competitive bids and shall be the prices established by the individual
employer in his current list prices and/or discount sheets. They shall apply
alike on all orders for the same quantity of a given item taken at one time
and shipped to the same destination. Such prices shall be established inde-
pendently by each employer.
(a) No discounts, other than those established for specified packages and
quantities — and filed in member's current price schedule provided for in Para-
graph (b)— shall be allowed because of the purchase at one time of miscellaneous
assortments of any given value or because of the aggregate value of such orders
placed over any stated period of time.
(b) Each employer shall file with the Manager, within thirty days after the
effective date, a list of his current selling prices and discount sheets for all
laboratory apparatus and supplies carried in his stock, listed in his catalog, or
regularly offered by him for sale, including single, quantity, or package prices
to consumers. No employer shall sell or offer to sell any product of this
industry at a price less or on conditions different from those established by
his own price lists and discount sheets.
(c) Terms to consumers shall be thirty days net or net payment on the 25th
proximo. No cash discounts shall be allowed.
(d) The granting of trade discounts or their equivalent by any manufac-
turer, manufacturers' agent or wholesaler, to any one in the laboratory supply
business who shall be found by the Section Administrator to be conducting his
business in a manner not conforming with this Code, constitutes a violation of
this Code.
(e) Nothing in this Code shall be interpreted as interfering with or dis-
turbing the relations between manufacturers or wholesalers and their chosen
dealers, when such relations are in accord with the provisions of this Code;
nor so interpreted as to restrict or otherwise obligate any manufacturer or
wholesaler in the free choice of dealers.
(f) Allowances for old apparatus taken in part payment for new shall be
subject to the following limitations :
(1) The old apparatus shall not exceed in quantity and shall be equiva-
lent in type to the new.
(2) The price allowed for the old apparatus shall not exceed ten percent
of the prevailing price of like new apparatus, or if more than ten percent, it
shall be not more than the fair cash market value.
(44)
SCHEDULE D
SUPPI^MBNTARY CODB FOE THE LABOR.\TORY FUBNITUBB MANUFAl: lUliERS* SECTION
Denmtion.— The term "Laboratory Furniture", as used herein, means the
following products (made of wood or metal or both) with accessories:
I Science Furniture and Equipment for laboratory use.
(a) Specialized laboratory furniture, with or without fittmgs and
accessories. • , , .^, -.i, <. «<.
(b) General science and physics laboratory tables, with or without fit-
tings and accessories.
(c) Biology and agricultural tables.
(d) Chemisti-y and combination science tables and fume hoods.
(e) Dental, medical, and pharmacy laboratory tables.
(f) General laboratory furniture..
(g) Cases and cabinets for science laboratories and displays,
(h) Industrial laboratory tables.
(i) Electrical laboratory furniture.
II. Vocational Furniture and Equipment for laboratory use.
(a) Art furniture.
(b) Woodworking and metal shop furniture.
Ill Home Economic Furniture and Equipment for laboratory use.
(a) Domestic Science and dietetic laboratory furniture.
(b) Sewing room furniture and equipment for laboratory use.
(c) Educational classroom tables.
IV. Commercial Furniture for educational uses.
(a) Bookkeeping and typewriting room furniture.
V. Pharmacognosy desks and tables for laboratory use.
vi. Chairs and Stools for laboratory use. ui * •*
(a) Chairs attached by mechanical means to fixed or movable furniture.
(b) Automatic adjustable stools and chairs. _
Terms of S«/e.— Terms shall be 30 days net, except when otherwise specified
by contract. , r,/^ , n „j
No cash discounts shall be allowed. If terms in excess of 30 days are allowed
or full payment is not made in 30 days, interest at the rate of 6 percent, or less
if so provided by State law, shall be charged for any balance unpaid after
30 days. „ . , ,
Trade Practices.— The following shall be unfair trade practices.
1. To discriminate either directly or indirectly in the prices charged to any
nil vr^ln **iGi*
2 The prepayment of freight or express charges without charging therefor, or
the installation of equipment, at the expense of the manufacturer, with the
intent or with the effect of granting discriminatory credits or otherwise.
3 Submission of full-size samples of either stock or special items lor the
inspection of prospective customers, except in the regularly maintained Ui>»play
rooms of the manufacturer or his agent, in lieu of demonstrating sections.
4. The making of plans, drawings or layouts, and/or specifications for dis-
tribution by the prospective customer to competing employers for the purpose of
obtaining competitive bids, without bona fide agreement with the prospective
customers to pay the originator of said plans, drawings, layouts, and/or specifi-
cations an amount not less than the actual cost of such service.
5. Entering into " Term Contracts " covering a definite period of time for
indefinite quantities of furniture, without provision for reimbursement for actual
increases in cost of both labor and material over those current at time contract
is accepted.
6. The giving of guarantees on equipment in excess of a one-year guarantee
against defective materials and workmanship.
(45)
o
Approved Code No. 115
CODE OF FAIR COMPETITION
FOR THE
WOOD PLUG INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An applicrition having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, appoved June 1(3, 1933, for my approval of a Code
of Fair Competition for the Wood Plug 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 respects 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 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 reconnnended :
Hugh S. Johnson,
A(hninhtrato7\
The White House.
Novnnhcr L'i, 1933.
29177° 296-93 34 (47)
The President,
The ^^nl^te House.
Sir: This is a report on the Code of Fair Competition for the
Wood Phig Industry in the United States, the hearing being con-
ducted in Washington, D.C., October 25, 1933, in accordance with
the provisions of the National Industrial Recovery Act.
PROVISIOXS ox HOURS AXD WAGES
The maximum hours provided by the code for factory employees
will be 40 per week and 8 per da3^ Those employed as shipping-
clerks, foremen, and engineers are allowed a tolerance of 8 hours
in any one week. Watchmen are allowed a tolerance of 16 hours
in any one week but are restricted to 8 hours in any 24-hour period,
thus providing for this service by two shifts. Those employed in
maintenance and repair work are allowed a tolerance of 8 hours in
any one week with one and one-third the normal wage being paid
for time in excess of 40 hours in any one week. The above limita-
tions of hours do not apply to employees engaged in supervisory
work receiving more than $35.00 per week.
The minimum wage rate for labor in the South will be 27 cents
per hour until one year from the effective date of this code and 30
cents per hour thereafter. The minimum wage rate in the North
will be 321/^ cents per hour until one year from the effective date of
this code and 35 cents per hour thereafter. It is provided that
wages shall be paid in cash or by negotiable check to avoid the use
of company scrip which has been practiced by a few members of
this industry. It is also provided that an employee shall not be re-
quired as a condition of employment to live in a house owned by
his employer nor to trade at the store operated by his employer.
No distinction in wage rates will be made between male and female
emplo3'ees doing the same type of Avork. Equitable adjustment of
wage rates above the minimum provided will be made and reported
to the Administrator. Handicapped persons may be employed, but
their number shall not be in excess of 10 percent of the total number
of employees in any plant and at a wage rate of not less than 80
percent of the minimum wage rate provided by the code.
The terms of employment for those engaged in accounting, cleri-
cal, and office work are in accordance with the President's Reemploy-
ment Agreement. Weekly compensation of all employees as of June
16, 1933, higher than the minimum will not be reduced because of
any change in hours j^rovided in the code.
CHILD LABOR
The minimum age provided in this code is 16 years, but in hazard-
ous occupations this age limit is increased to 18 years.
(48)
49
ECONOMIC EFFECT OF THE CODE
This relatively small industry manufactures the wooden plugs
and cores which paper manufacturers use for paper rolls. There are
less than 20 members of this industry and approximately 500 workers
are employed. Approximately half of the employees are engaged as
woods or logging crews to })rocure the raw material for this opera-
tion which cannot be secured from lumber dealers due to required
size A'ariations. The other half of the em])ioyees are engaged in
factor}' operations. Most of this labor is unskilled and interchange-
able.
It is estimated by the industry that the provisions of this code
regarding maximum hours Avill increase employment approximately
20 percent and that the income of employees will be increased be-
tween 25 percent and 40 percent. The wage scale has been exceed-
ingly low due to a chaotic condition of ruinous competition in this
industry during recent years which representatives of the industry
believe will be largely corrected by the adoption of this code.
In arriving at the terms expressed in the code, the industry has
shown its cooperation in complying with the spirit of the Act and
looks upon the proposed code of fair competition as a necessity to 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
admission to membership therein and is truly representative of the
wood plug industry; and that
(c) The code as recommended is not designed to promote monop-
olies or to eliminate or opj^ress 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,
Administi'ator.
CODE OF FAIR COMPETITION
FOR THE
WOOD PLUG INDUSTRY
AitTicLE 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 Wood Plug Industry, and upon approval
by the President shall be the standard of fair competition for such
industr}^ and sliall be binding upon every member thereof.
Article II— Definitions
The term '* industry " as used herein includes the manufacture
and sale by manufacturers of wooden plugs and cores for paper rolls,
and such branches or subdivisions thereof as may from time to time
be included under the provisions of this Code by the President after
such notice and hearing as he maj^ prescribe.
The term '" employee " as used herein includes anyone engaged in
the industry in an}^ capacity receiving compensation for his services,
irrespective of the nature or method of payment of such compen-
sation.
The term '" emploj^er '' as used herein includes anyone by whom
any such emplo^^ee is compensated or employed.
The term '' niember of the industry "' includes anyone engaged in
the industry as above defined, either as an emplover or in his own
behalf.
The term ''Association "' as used herein means the Wood Plug
Manufacturers' Association.
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.
The term " South "' as used herein shall include the states of
Virginia, West Virginia, Kentucky, Arkansas, Oklahoma, Texas, and
all the territoiy of the United States south and east of the states
named.
The term " North " as used herein shall include all the territory
of the United States not included in the South.
Article III — Hours
1. No employee 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, except as hereinbefore stated :
(a) Shipping clerks, firemen, and engineers, who shall not be
l^ermitted to work in excess of nine and one-half (9^) hours in
any twenty-four (24) hour period or forty-eight (48) hours in any
one week.
(50)
51
(b) Watchmen, who shall not be permitted to work more than
eioht (8) hours in any twentj-four (24) hour period, who shall
receive one and one third times their normal rate for all hours in
excess of forty-eight (48) hours in any one week.
(c) Employees in a managerial or executive capacity who now
receive more than $35.00 per week.
2. The maximum hours fixed in the foregoing section shall not
apply to an employee on maintenance or repair work who shall not
be permitted to work more than forty-eight (48) hours in any one
week and who shall be paid at least one and one-third (IV^) tunes
their normal rate for all hours worked in excess of forty (40) hours
in any one week.
3. No emplo3'er shall knowingly engage any employee for any time
which when totaled with that already performed with anothei- em-
ployer or employers exceeds the maximum hereinabove provided.
Article IV — Wages
1. No employee in the South shall be paid at less than the rate of
twenty-seven (27) cents per hour during the period which shall con-
tinue for one year from the date on which this Code shall become
effective, nor less than the rate of thirty (30) cents per hour there-
after while this Code shall be in effect; no employee in the North
shall be paid at less than the rate of thirty-two and one-half (321^)
cents per hour during the i)eriod which shall continue for one year
from the date on which this Code shall become effective, nor less than
the rate of thirty-five (35) cents per hour thereafter while this Code
shall be in effect.
2. An emploj^er shall make payment of all wages due in lawful
currency or by negotiable check, therefor payable on demand.
Wages shall be paid at the end of each work week. These wages
shall be exempt from any payments for pensions, insurance, or sick
benefits other than those voluntarily paid by the wage earners.
The employer or his agents shall accept no rebates directly or in-
directly on such wages nor give anything of value or extend favors
to any person for the purpose of influencing rates of Avages or the
working conditions of employees.
3. Accounting, clerical, or office employees shall not be paid less
than. the rate of $15.00 per week in any city of 500,000 population
or over, or in the immediate trade area of such city, and not less than
$14.50 per week in any city between 100,000 and 500,000 population
or in the immediate trade area of such city, and not less than $14.00
per week in any city between 10,000 and 100,000 or in the immediate
trade area of such city, and not less than $12.00 per week in any city
under 10,000 population. The census figures for the latest Federal
census shall be the basis for this provision.
4. This Article establishes minimum rates 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 employees.
G. The weekly compensation of all employees as of June IG, 1933,
in excess of tlic minimum wage hereinabove specified shall not be
52
reduced, notwithstanding that the hours of work of any such em-
ployee may be reduced. The wages of all employees receiving more
than the minimum rates herein prescribed shall be equitably adjusted
and the differentials between employees receiving in excess of the
minimum herein prescribed existing prior to the approval of this
Code shall be maintained. Such adjustments shall be reported to
the Code Authority and to the Administrator.
7. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below the minimum established by this 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 hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him. The number of such employees shall not
be in excess of 10 percent of the total number of employees engaged
by any member of the Industry at any one time, nor shall such em-
ployees he paid at less than 80 percent of the minimum wage rate
herein established.
8. Employees other than maintenance or supervisory men, or those
necessary to protect the property, shall not be required, as a condition
of employment, to live in quarters rented from the employer.
9. No employee shall be required, as a condition of employment,
to trade at the store of the employer.
Article V — Gp^neral Labor Provisions
1. 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 detrimental to
health. The Code Authority shall submit to the Administrator be-
fore January 30, 1934, a list of such occupations. iLn 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 au-
thority in such State empowered to issue employment or age certifi-
cates or permits, showing that the employee is of the required age.
2. 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 any other concerted activities for the jDur-
pose 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 re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
4. Employers shall comply Avith the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
5. Within each State no provision of this Code shall 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.
53
6. Emploj-ers shall not reclassify employees or duties of occupa-
tions performed bv employees so as to defeat the purposes of the
Act.
7. Each employer shall post in conspicuous and accessible places
full copies of this Code.
Article VI — Administration
To. effectuate further the policies of the Act a Code Authority
is hereby constituted to cooperate with the Aduiinistrator in the
administration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of five (5) individuals
or such other number as may be approved from time to time by the
Administrator, to be selected' as hereinafter set forth. The Adminis-
trator, in his discretion, may appoint from one to three additional
members without vote to represent the administration or such groups
or interests as may be agreed upon. Members appointed by the Ad-
ministrator shall serve for terms of from six months to one year
provided, however, that the terms of such membei's shall not expire
at the same time. Such members shall be given notice of and may
attend all meetings of the Code 'Authority.
(b) Three members of the Code Authority shall be selected by
the Association from among its membership. The Association not
later than 10 days after the approval of this Code shall notify the
members of the Industry who are nonmembers of the Association
that on a specified day not later than 20 days after such notice shall
have been given two members of the Code Authority will be selected
by nonmembers of the Association. Such notice shall specify that
such nonmembers may be selected by nonmembers of the Association
either jDresent or by proxy or by letter ballot.
(c) The 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 mem-
bership, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
(d) In order that tlie Code Authority shall at all times be truly
representative of the Industry and in otiier respects compl}' with tlie
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. Tlie Code Authority shall have the following duties and powers
to the extent permitted l^y the Act, subject to the right of the Admin-
istrator on review to disapprove or modify any action taken by the
Code Authority :
(a) With a view to informing the President and the Admin-
istrator as the observance of this Code, and as to whether the Indus-
try is taking appropriate steps to effectuate the declared policy of
the Act, each member of the Industry shall furnish duly certified
reports in the form required by the Code Authority on wages, hours,
54
conditions of employment, and such other matters as may be perti-
nent to the administration of this Code. The Code Authority shall
make such reports to the Administrator as he may direct. All such
reports shall be held in strict confidence except when they shall be
required by the Administrator or the Code Authority in connection
with a violation of the provisions of this Code.
(b) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in the Industry
as they may develop, Avhich will tend to effectuate the operation of
the provisions of this Code.
(c) The Code Authority is also set up to cooperate with the Ad-
ministrator in makinp; investigations as to the functioning and
observance of any provisions of this Code, at its own instance or on
request of the Administrator, or on complaint of any person affected,
and to report the same to the Administrator.
(d) The Code Authority shall coordinate the Administration of
this Code with such codes, if any, as may affect this Industry or
any related industr}^, with a view to promoting joint and harmonious
action upon matters of common interest.
(e) All 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. Mem-
bers who thus participate in or share the benefits shall sustain their
reasonable share of the expenses of its administration. The reason-
able share of the expenses shall be administered by the Code Au-
thority, subject to review by the Administrator, on the basis of
volume of business and/or such other factors as may be deemed equit-
able to be taken into consideration.
3. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to government agencies
by the members of the Industry such statistical information as the
Administrator may deem necessary for the purposes recited in Sec-
tion 3 (a) of Title' I of the Act.
Article VII — Trade Practices
1. The Code Authority shall formulate or cause to be formulated
a uniform accounting S3^stem which shall be adaptable to cost-ac-
counting procedure and to the business of the Industry. Such plan
shall specify the factors Avhich shall be included in determining the
costs to each member of the Industry. Upon approval by the Admin-
istrator of such a system of cost accounting for the Industry com-
plete advice concerning it shall be distributed by the Code Authority
to all members of the Industry. Thereafter no member of the Indus-
try shall sell the products of tlie Industry at such prices or upon such
terms and conditions of sale as will result in the purchaser's paying
for such product less than the cost thereof to the seller, determined
in accordance with the aforesaid system of cost accounting, except
to meet competition. Within twenty days after the approval of this
Code each member of the Industry shall publish to the trade and
file with the Code Authority a price list for all products of the indus-
try sold or offered for sale by him, together with the discounts, if
any, allowed therefrom, and fixed terms of payment. Revised price
55
lists or revised discounts or terms and conditions of sale may be filed
and published from time to time thereafter b}' any member of the
Industry, provided, however, that such revision shall be published
and filed with the Code Authority at least five daj^s in advance of
the effective date thereof. No member of the Industry shall sell or
offer for sale any products of the Industry at prices lower than the
prices noted in his price list or on more favorable terms and condi-
tions of sale than the terms and conditions of sale previously pub-
lished" and filed by such member with the Code Authority in accord-
ance with the forefjoinix provisions and in effect at the time of such
sale.
2. The followino- jiractices constitute unfair methods of competi-
tion and are ])rohibited :
(a) Directly or indirect!}^ to give or permit to be given, or offer
to give, money or anything of value to agents, employees, or repre-
sentatives of customers or prospective customers, or to agents, em-
ployees, 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 pur-
chase 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.
(b) The secret payment or allowance of rebates, refunds, com-
missions, or unearned discounts, whether in the form of money or
otherwise, or secretly extending to certain purchasers special services
or privileges not extended to all purchasers under like terms and
conditions.
Article VIII — ]\Iodificatiox
1. 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, 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 im-
posed by him upon his approval thereof.
2. This Code, excej)! as to provisions required by the Act, may be
modified on the l)asis of experience or changes in circumstances, such
modification to be based upon application to the Administrator and
such notice of hearing as he shall specif3^ and to become effective on
approval of the President.
AirncLE IX — Monopolies
No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprise.
Article X — Effective Date
This Code shall be effective ten days after its approval by the
President.
Approved Code No. 1 ] ."i.
Registry No. 329-02.
O
Approved Code No. 116
CODE OF FAIR COMPETITION
FOR THE
MOPSTICK INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair "^Competition for the Mopstick Industry, and hearings hay-
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 there-
to^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 recommenda-
tions 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,
Administratoi'.
The AVhite House,
November 14-, J'^33.
292'JS'' 296-99 34 (57)
NOMJMBER 9, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Mopstick Industry in the United States, the hearing being con-
ducted in Washington, D.C., October 26, 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. Firemen and engineers are
allowed a tolerance of 8 hours in any one week. Shipping clerks
and men engaged in maintenance and repair work are allowed a
tolerance of 8 hours with one and one third the normal wage rate
being paid for time worked in excess of 40 hours in any one week.
Watchmen are permitted a tolerance of 16 hours in any one week
with a day off each week. The above limitations do not apply to
emplovees engaged in supervisorv Avoi-k and receiving more than
$35.00'per week.
The minimum wage rate for employees is 35 cents per hour, male
and female. Handicapped persons may be employed but their num-
ber shall not exceed 10 percent of the number of employees in any
plant and their wage rate shall be not less than 80 percent of the
minimum wage rate provided by the code. The weekly compensa-
tion of all employees as of June 16, 1933. higher than the minimum
will not be reduced because of any change in hours provided in
the code.
CHILD LABOR
The minimum age provided in this code is 16 years, but in hazard-
ous occupations this age limit is increased to 18 years.
ECONOMIC EFFECT OF THE CODE
This small industry manufactures mop sticks made by finishing a
mop handle and attaching thereto a clamping device for holding a
removable wet mop. Approximately 160 persons are employed in
this industiy. It has maintained an effective trade association for
many years and approximately 97 percent of its product complies
with the specifications established by the United States Bureau of
Standards. The provisions of article VII, section 2, on methods of
unfair competition were derived from a list of unfair trade prac-
tices approved for the Mopstick Industry by the Federal Trade
Commission and are already in operation in this Avell organized
industry.
Analysis of data submitted by this industry indicates that ap-
proximately the provisions of the code already made effective have
increased the number of those employed in September 1933, as com-
pared with June 1933, by 18.5 i^ercent. The reported average wage
for September represents increases of 16.7 percent in the weekly
wage and 31.3 percent in the hourly wage.
(58)
59
In arriving at the terms expressed in the code, the industry has
shown its cooperation in complying with the spirit of the National
Industrial Recovery Act and welcomes the adoption of a code of
fair competition ns a further aid in accomplishing the purposes of
said 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 memlbership therein and is truly representative of the
Mopstick 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 eifectuate 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
MOPSTICK 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 Mopstick Industry, and upon approval by
the President shall be the standard of fair competition for such
industry and shall be binding upon every member thereafter.
Article II — Definitions
The term '' mopstick industry "' as used herein includes the manu-
facture and/or sale by manufacturers of complete mopsticks made
by finishing a mop handle and attaching thereto a metal clamping
device for holding removable wet mops, and such branches or sub-
divisions thereof as may from time to time be included under the
provisions of this code by the President after such notice and hearing
as he may prescribe.
The term '' emploj^ee " as used herein includes any one 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 " member of the industry " includes any one engaged
in the industrv 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.
The term "Association " as used herein shall mean the National
Association of Mop Stick Manufacturers.
i'LRTiCLE III — Hours
1. No employee shall be permitted to work in excess of 40 hours
in any one week or 8 hours in any 24-hour period, with the following
exceptions :
(a) Firemen and engineers, who shall not be permitted to work
more than nine and one half hours in any twenty-four hour period
nor more than forty-eight hours in any one Aveek.
(b) Shipping clerks and men engaged in repair and maintenance,
who shall not be permitted to work more than 48 hours in any one
w^eek and who shall be paid at least one and one third times their
normal rate for all hours worked in excess of forty (40) hours in any
one week.
(60)
6t
(c) Watchmen, who shall not be permitted to work more than fifty-
six (56) hours in any one week nor more than six (6) days in any
seven (T) day period.
(d) Employees engaged in a managerial or executive capacity and
receiving compensation at the rate of $35.00 per week or more, and
outside salesmen, who shall not be subject to hourly limitations.
2. No employer shall knowingly engage any employee for any
time which when totaled with that alread}' performed with another
employer or emploj^ers exceeds the maximum hereinabove provided.
Article IV — Wages
1. No employee shall be paid less than the rate of $14.00 per week
of forty (40) hours (or 35 cents per hour).
2. This x^rticle establishes minimum rates of pay, regardless of
whether an employee is compensated on a time-rate, piece work, or
other basis.
3. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
4. The weekly compensation of all employees as of June 16, 1933,
in excess of the minimum wage hereinabove specified shall not be
reduced notwithstanding that the hours of work of any such em-
ployees may be reduced. The wages of all employees receiving more
than the minimum rates herein prescribed shall be equitably adjusted
and the differentials between employees receiving in excess of the
minimiun herein prescribed existing prior to the approval of this
Code shall be maintained. Such adjustments shall be reported to
the Code Authority and to the Administrator.
5. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed in light work at a
wage below the minimum established by this 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 hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons emploj'ed by him. The number of such employees engaged
by any member of the Industry at any one time shall not be in
excess of 10 percent of the total number of his employees, nor shall
such employees be paid at less than 80 percent of the minimum wage
rate herein established.
Artici>e V — General Labor Provisions
1. Emph)3ees shall have the riglit to organize and bargain col-
lectively through representatives of their own clioosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives
or in self-organization or in other concerted activities for the pur-
pose of collective bargaining or other nnitual aid or protection.
2. No employee and no one seeking emijloynient sliall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a )^b'.>r organization of his
own choosing.
62
3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and "other working? conditions approved or
prescribed by the President. i -i
4. 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 detrimental to
health. The Code Authority shall submit to the Administrator
before January 30, 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 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.
5. Within each State no provision of this Code shall supersede any
law's of such State imposing more stringent requirements on em-
ployer 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 and accessible places
full copies of this Code.
Article VI — Administration
To effectuate further the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the admin-
istration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of five (5) individuals, or
such other number as may be approved from time to time by the
Administrator, to be selected as hereinafter set forth. The A.dmin-
istrator, in his discretion, may appoint from one to three additional
members without vote to represent the Administrator or such groups
or interests as mav be agreed upon. Members appointed by the
Administrator shall serve for terms of from six months to one year,
provided, however, that the terms of such members shall not expire
at the same time. Such members shall be given notice of and may
attend all meetings of the Code Authority.
(b) Four members of the Code Authority shall be selected by the
Association from among its membership by ballot, and one member
shall be selected from among the nonmembers of the Association by
those nonmembers. The Association not later than 10 days after
the approval of this Code shall notify the members of the Industry
who are nonmembers of the Association that on a specified day not
later than 20 days after such notice shall have been given one mem-
ber of the Code Authority will be selected by nonmembers of the
Association. Such notice shall specify that such nonmember may be
selected by nonmembers of the Association either present or by
proxy or by letter ballot.
(c) Each trade or industrial association directly or indirectly
participating in the selection and activities of the Code Authority
shall: (1) Impose no inequitable restrictions on membership, and
63
(2) submit to the Administrator true copies of its articles of associa-
tion, byla^vs. 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 tliat 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 liave the following duties and powers
to the extent permitted by the Act, subject to the right of the Admin-
istrator on review to disai)prove or modify any action taken by the
Code Authority.
(a) With a view to informing the President and Administrator as
to the observance of this Code, and as to whether the Industry is
taking appropriate steps to effectuate the declared policy of the Act,
each member of the Industry shall furnisli duly certified reports in
the form and as required by "the Code Authority for the administra-
tion of this Code on production, orders, sales, prices, and conditions
of employment and such other matters as mav be i^ertinent to the
administration of this Code. The Code Authority is hereby con-
stituted the agency for the collection and compilation of such reports,
and for the forwarding of such reports to the Administrator; and all
such reports shall be held in strict confidence i)v the Code Authority
except when they shall be required by the Adininistrator or by the
Code Authority in connection with a violation of the provisions of
this Code.
(b) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in the Industry
as they may develo]) which will tend to effectuate the operation of the
provisions of this Code.
(c) The Code Authority is also set up to cooperate with the
Administrator in making investigations as to the functioning and
observance of any provisions of this Code, at its own instance or on
(^omplaint of any person affected, and to report the same to the
Administrator.
(d) The Code Authority shall coordinate the administration of
this Code with such other codes, if any, as may affect this Industry
or any related industry with a view 'to promoting joint and iiar-
monious action upon matters of common interest.
(e) All members of the Industry shall be entitled to participate
m and share the benefits of the activities of the Code Authority and
to participate m the selection of the members thereof by assentin*'-
to and complying with the requirements of this Code, those mem"
bers thus participating and sharing shall sustain their reasonable
share of the expenses of its administration. The reasonable share
of the expenses of administration shall be determined by the Code
Authority, subject to review by the Administrator, on tlie ba^.is of
volume and/or such other factors as may be deemed equitable to be
taken into consideration.
64
3. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to government agencies by
the members of the Industry such statistical information as the
Administrator may deem necessary for the purposes recited m
Section 3 (a) of Title I of the Act.
Article VII — Trade Practices
1. The Code Authority shall formulate or cause to be formulated
a uniform accounting system which shall be adaptable to the cost
accounting procedure and to the business of the Industry, buch
plan shall specify the factors which shall be included m determining
the costs of each member of the Industry. Upon approval by the
Administrator of such a system of cost accounting for the Industry,
complete advice concerning it shall be distributed by the Code Au-
thority to all members of the Industry. Thereafter no member o±
the Industry shall sell the products of the Industry at such prices
or upon such terms and conditions of sale as will result m the pur-
chaser's paying for such product less than the cost thereof t^o the
seller determined in accordance with the aforesaid system of cost
accounting, except to meet competition. Withm twenty days after
the approval of this Code each member of the Industry shall pub-
lish to the trade and file with the Code Authority a price list tor
all products of the Industry sold or offered for sale by him, together
with the discounts, if any, allowed therefrom, and fixed terms of
payment. Revised price lists or revised discounts or terms and con-
ditions of sale may be filed and published from time to time there-
after bv any member of the Industry, provided, however, that such
revision shall be published and filed with the Code Authority at
least five days in advance of the effective date thereof. No member
of the Industry shall sell or offer for sale any products of the In-
dustry at prices lower than the prices noted m his price list or on
more favorable terms and conditions of sale than the terms and con-
ditions of sale previously published and filed by such member with
the Code Authority in accordance with the foregoing provisions
and in effect at the time of such sale. ., , .
2. The following practices constitute unfair methods of competi-
tion and are prohibited : . . ^ . . , , ;.
(a) Either directly or indirectly to discriminate m price between
different purchasers of commodities, where tlic effect of such dis-
crimination may be substantially to lessen competition or tend to
create a monopoly: Provided, that nothing herein contained shall
prevent discrimination in price between purchasers of the same class
on account of differences in the grade, quality, or quantity of the
commodity sold ; -, , <> .i -r t j.
(h) The sale or offering for sale of any product of the Industry
by any false means or device which has the tendency and capacity
to mislead or deceive customers or prospective customers as to the
quantity, quality, substance, or size of such product ;
(c) the imitation of the trade marks, trade names, slogans, or
other marks of identification of competitors, having the tendency and
capacity to mislead or deceive purchasers or prospective purchasers;
65
(d) The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perfonn contracts, questionable
credit standinof, or by other false representations, or the false dis-
paragement of the grade or quality of their goods, with the tendency
and capacity to mislead or deceive purchasers or jDrospective
purchasers ;
(e) Maliciously inducing or attempting to induce the breach of
existing contracts between competitors and their customers by any
false or deceptive means vrhatsoever, or interfering with or obstruct-
ing the performance of an}' such contractual duties or services by any
such means :
(f) The secret payment or allowance of rebates, refunds, commis-
sions, or unearned discounts, whether in the form of money or other-
wise, or secretly extending to certain purchasers special services or
privileges not extended to all purchasers under like terms and
conditions :
(g) Oflt'ering for sale merchandise at a price reduced from a
marked-up or fictitious price which has the tendency and capacity
to mislead or deceive purchasers or prospective purchasers;
(h) To sell mopsticks which do not comply with the minimum
standards as established for the Industry by the United States
Bureau of Standards without labelling the product as not com-
plying with such standards.
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 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
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 of the President.
Article IX — ]\Ioxopolies and Moxopolistic Practices
Xo provisions of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.
Article X — Effective Date
This Code shall become effective on the 10th day after its approval
by the President.
Approved Codo No. IIG.
Regi.stry No. 328-02.
O
Approved Code No. 117
CODE OF FAIR COMPETITION
FOR THE
GEAR MANUFACTURING INDUSTRY
As Approved on November 14, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Gear Manufacturing Industry, and
hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section 3 of the said xVct 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. Johxsox,
Administrator.
The White House,
November U, 1933.
21)233° 29G-100 34
(67)
November 10, 1933.
The President,
The White House,
Sir: This is a report on the Code of Fair Competition for the
Gear Manufacturing Industry, the hearing having been held in
Washington, November 8, 1933, in accordance with the provisions
of the National Industrial Recovery Act.
PROVISIONS AS TO HOURS AND WAGES
This Code provides for a maximum 40-hour week for all em-
ployees except executive, administrative, supervisory, and technical
employees, and outside sales and service employees receiving $35.00
or more per week; and watchmen and firemen, provided, however,
that watchmen and firemen shall not be permitted to work in excess
of 48 hours per week or in excess of 6 days in any one week. Excep-
tion is also made for those branches of the Industry in which seasonal
or peak demands, the requirements of the continuous gear-making
processes or break-downs place a temporary burden on such branches.
In these special cases, such number of hours may be worked as may
be required, provided that in no such case shall they exceed 48 hours
in any one week.
It is further provided that the emergency overtime in excess of
40 hours per week will not exceed 64 hours during any 6 months'
period. Time and one-half the hourly rate is established for all
hours worked in excess of the daily scheduled number of hours and
in excess of 40 hours per week.
The Code provides for a minimum hourly wage of 40 cents per
hour, except that apprentices may be emploj^ed at a lesser rate,
provided written contracts with apprentices are filed with the Code
Authority, and handicapped employees whose earning capacity is
limited because of age or physical condition.
Each employer shall file with the Code Authority a list of all
such handicapped persons employed by him, but the number of such
persons employed at less than the minimum rates shall be limited
to 2% of the number of his employees.
A minimum wage of $15.00 per week shall be paid to clerical and
-all other employees not covered by the hourly rate, except that a
limited number of office boys or girls may be employed at not less
than 80% of the minimum weekly salary.
Hourly rates, base piecework rates, and salaries above the minimum
will be equitably adjusted by those employers of the Industry who
have not already made adjustments, and in no case shall they be
decreased.
Complete copies of the Code will be posted in conspicuous places
accessible to employees.
(68)
69
ECOXOMIC EFFECT OF THE CODE
Xo person under the age of IG shall be employed or any person
under 18 years of ao;e at hazardous occupations.
Employment in the Industry has shown an increase of approxi-
mately 30% in 1933 to date over that of the year 1932. This is at-
tributed partly to the shortening of hours and partly to upswing
in production. There has been an increase of 45% in the number
of workers for the 4 months' period, May to August, over the first
4 months of the year 1933. At the present time, there are approx-
imately 5,000 employees engaged in the Industry as against 8,000
in 1929.
Adjustments in the wage and salary classifications over the mini-
mam rates, when considered in connection with additional reem-
plo5'ment, should represent an increase in pay roll of approximately
$120,000 over that of 1932.
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
Gear 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 approved.
Respectfully,
Hugh S. Johnson,
A dministrator.
CODE OF FAIR COMPETITION
FOR THE
GEAR MANUFACTURING 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 Gear Manufacturing Industry and, upon
approval by the President, shall be the standard of fair competition
for this industry.
Article II — Definitions
The term " industry " as used herein is defined to mean and
include the manufacture for sale of cut-tooth gears, speed reducers
(whether manufactured with or without motor and whether or not
known as mortorized reducers, gear motors or by similar designa-
tions), cut-tooth sprockets, and other similar power-transmission
media ; except such of the above described items as are produced by
any manufacturer within another industry as part of the products
of such other industry, including finished and semi-finished parts
thereof and replacement parts therefor and not sold for other uses in
the general market of the industry herein defined.
The term " employee '' as used herein includes any and all persons
engaged in the Industry, however compensated, except a member of
the Industry.
The term '• member of the Industry " includes, but without limita-
tion, any individual, partnership, association, corporation, or other
form of enterprise engaged in the Industry, either as a manufacturer
or on his own or its own behalf.
The term "apprentice " as used herein means an individual (usu-
ally a minor), bound by indenture to serve an employer for a term
of years at a predetermined wage for the period of the indenture in
order to learn a trade, art, or profession.
The term " member of the Code " includes any member of the In-
dustry who shall expressly signify assent to this Code.
The term "Act " means'Title I of the National Industrial Recovery
Act.
The term " President " means the President of the United States.
The term "Administrator " means the Administrator for National
Recovery.
The term "Administration" means the National Industrial Re-
covery Administration.
The term "Association " means the American Gear Manufacturers'
Association, a trade association now having its office in the First
National Bank Building, Wilkinsburg, Pennsylvania.
The term " Executive Committee '' means the Executive Committee
of the Association.
(70)
71
The term "effective date ", as used herein, is defined to mean the
eleventh day after this Code shall have been approved by the
President.
Article III — Employment
As required by Section 7 (a) of Title I of the National Industrial
Recovery Act, the following provisions are included in this Code :
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
l3e free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self -organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection ;
(2) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
(3) That employers shall comj^ly with the maximum hours of
labor, minimum rates of pay, ancl other conditions of employment,
approved or prescribed by the President.
Article IV — Hours
No employee shall be permitted to work in excess of 40 hours per
week, excluding :
(1) Executive, administrative, supervisory, and technical em-
ployees, and outside sales and service employees, who receive $35.00
or more per week ; and
(2) Watchmen and firemen, provided, however, that watchmen
and firemen shall not be permitted to work in excess of 48 hours
per week or in excess of six days in any week.
The foregoing limitations shall not apply to branches of this
Industry in which seasonal or peak demands, or the requirements
of a continuous gear-making process or a breakdown, place an un-
usual and temporary burden on such branches. In any such case
such number of hours may be worked as are required by the neces-
sities of the situation, provided that in no such case shall the hours
worked in any one week exceed 48, and provided further that the
number of hours worked in any six months' period in excess of 40
hours per week shall not exceed 64 hours.
Where in any case an employee works in excess of the daily
scheduled number of hours or in excess of 40 hours in any one week,
such extra time shall be compensated for at not less than one and.
one-half times the hourly rate of such employee.
No employee shall knowingly be permitted to work for a total
number of hours in excess of the number of hours prescribed for the
week, whether employed by one or more employers.
No employer shall reclassify employees or duties of occupations
performed for the purpose of defeating the provisions of the Act
or of this Code.
72
Article V — "Wages
The minimum wage that shall be paid to any employee shall be
forty cents (40^) per hour, with the following exceptions:
(1) Apprentices. — Any employee 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 sj^s-
tem 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.
(2) Handicapped Employees. — An individual whose earning ca-
pacity is limited because of age or physical or mental handicap may
be employed on light work at a wage below the minimum estab-
lished by this Code if the employer obtains from the State Authority
designated bv the United States Department of Labor a certificate
autliorizing his employment at such wages and for such hours as
shall be stated in the Certificate. Each employer shall file with the
Code Authority a list of all such persons employed by him, but the
number of sucli persons shall be limited to 2% of his employees.
Clerical Employees.— The minimum wage that shall be paid by
any employer to any of the accounting, clerical, office, service, or
sales employees shall not be less than $15.00 per week; provided,
however, that office boys or girls, limited in number to not more than
5% of the total number of employees in any factory, may be paid
not less than 80% of the above minimum.
The hourly rates, base piecework rates, and salaries for all duties
and occupations now^ paid at more than the minimum herein pre-
scribed shall be equitably adjusted by all members of the Industry
who have not already cfone so, and in no case shall these rates be
decreased. Reports concerning the action taken, Avhether prior to or
after the date of approval of this Code, shall be reported to the Code
Authority not later than ninety (90) days after the effective date,
and to the Administrator upon his request.
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,
piecework, or other basis.
Posting. — All employers shall post complete copies of this Code in
conspicuous places accessible to employees.
No provisions in this Code shall supersede any State or Federal
law which imposes more stringent requirements on employers as to
age of employees, wages, hours of work, or general working condi-
tions.
Article VI — Child Labor
On and after the effective date no employer shall employ any per-
son under the age of sixteen years, or any person under eighteen
years of age in any hazardous occupation.
73
Article VII — Administration
1. 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 this Code.
(a) The Code Authority shall consist of six members of the
Association (no two of whom shall represent the same manufac-
turer), appointed by and subject to the direction of the Executive
Committee of the Association ; one representative of members of the
Industry who are not members of the Association (providing they
desire such representation, and signify their willingness to pay their
pro rata share of the cost of administering this Code) ; and one
or more appointees of the Administrator, if he so desires. The ap-
pointee or appointees of the Administrator shall act in an advisory
capacity onl}". and shall have no vote. The representatives of the
nonmembers shall be elected by the nonmembers in any fair manner
approved by the Administrator.
(b) Any member of the Industry is eligible for membership in the
Association, and there shall be no inequitable restrictions on such
membership. Any such member may participate in the preparation
of and any revision or additions or supplements to this Code by as-
suming his pro rata share of the cost and responsibility of creating
and administering it, either by becoming a member of the Associa-
tion and paying the annual dues and assessments of the Associa-
tion, or by paying to the Code Authority his pro rata share of the
costs. There shall be no initiation fee for members of the Industry
who participate only in the Code and do not become members of
the Association.
2. The Code Authority' shall have the following duties and powers,
the exercise of which shall be reported to the Administrator and
shall be subject to his right, on review, to disapprove or modify any
action taken by the Code Authority.
(a) To collect from members of the Industry all data, reports,
and statistics when and as required by the President and/or the
Administrator and/or their agent or agents ; also to collect such
data, reports, and statistics as may be required from time to time
by the Code Authority. All such information shall be confidential,
except insofar as disclosure may be necessary for the effective admin-
istration and enforcement of this code. Such data as may be re-
quested by the Administrator shall be made available to him. Re-
ports submitted by the Code Authority to the President or the
Administrator shall be in the form prescribed or provided by him.
(b) In addition to information required to be submitted to the
Code Authoritj^ 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) The Code Authority may require from the members of the
Industry reports regarding prices, or prices and discounts on closed
transactions, or such other pertinent data on closed transactions as in
its opinion may be necessary to effectuate Title I of the Act, and may
publish the same should such procedure be deemed advisable.
74
(d) 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 Act and any regulations issued thereunder.
(e) To hear complaints and attempt to adjust the same.
(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 harmonious
action on all matters of common interest, all with approval of the
Administration.
(g) To study the marketing and trade practice provisions of Ar-
ticles IX and X hereof, and the operation thereof, and make recom-
mendations from time to time to the Administrator which it deems
desirable for modification or addition thereto, which, upon the
approval of the Administrator, after such hearing as he may pre-
scribe, 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 and enforcement of this Code, subject to the right of any affected
person to appeal to the Administrator.
(i) 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, postage prepaid, addressed to such mem-
ber of the Industry at his address on file with the Secretary of the
Code Authority.
(j) If the Code Authorit}^ determines that in any branch or sub-
division of the Industry it has been the generally recognized prac-
tice to sell a specified product on the basis of printed net price lists,
or price lists with discount sheets, and fixed terms of payment which
are distributed to the trade, each manufacturer of such product shall
within ten (10) days after notice of such determination file with the
Code Authority a net price list or a price list and discount sheet, as
the case may be, individually prepared by him showing his current
prices, or prices and discounts, and terms of pa3"ment, and the Code
Authority shall immediately send copies thereof to all known manu-
facturers of such specified product, and shall hold such copies and
any revisions available to the trade. Revised price lists with or
without discount sheets may be filed from time to time thereafter
with the Code Authority by any manufacturer of such jjroduct, to
become effective upon the date specified therein, but such revised
price lists and discount sheets shall be filed with the Secretary of
the Code Authority ten days in advance of the effective date, unless
the Code Authority shall authorize a shorter period. Copies of
revised price lists and discount sheets, with notice of the effective
date specified, shall be immediately sent to all known manufacturers
of such product, who thereupon may file, if they so desire, revisions
of their price lists and/or discount sheets, which shall become effec-
tive upon the date when the revised price list or discount sheet first
filed shall go into effect.
(k) If the Code Authority shall determine that in any branch or
subdivision of the Industry not now selling its products on the basis
of price lists with or without discount sheets with fixed terms of
payment the distribution or marketing conditions in said branch
or "subdivision are similar to, or the same as, the distribution or
75
marketing conditions in a branch or subdivision of the Industry
where the use of price lists with or without discount sheets is Avell
recognized, and that a system of selling on net price lists or price
lists and discount sheets should be put into effect in such branch or
subdivision, each manufacturer of the product or products of such
branch or subdivision shall within twenty (20) days after notice of
such determination file with the Code Authority net price lists or
price lists and discount sheets as the Code Authority may direct
containing fixed terms of payment showing his prices and discounts
and terms of payment, and^such price lists and/or discount sheets
and terms of payment may be revised, and shall be distributed and
held available to the trade, in the manner hereinabove provided.
Article VIII — Accounting and Costing
Every employer shall use an accounting system which conforms
to the principles of the uniform and standard chart of accounts set
forth in the Kecommended Practice for Uniform Cost Accounting
issued by the Association, and a costing system which conforms to
the principles of the standard uniform method of costing to be
formulated and approved by the Executive Committee and made
supplements to the said Manual of Accounting or method of costing,
subject to the approval of the Administrator.
Article IX — Marketing
Guarantees against decline in price, or protection against advance
in price, shall not be extended over a period greater than ninety
(90) days.
Prices quoted on a specified quantity shall not be applicable to a
lesser quantity. If lesser quantities are shipped under a contract
calling for a larger quantity, billing prices shall be those quoted
or consistent with the actual quantities shipped.
It shall be permissible for a bidder to offer any substitute which
he feels is equal, superior, or more desirable to meet the specifica-
tions of the bid; but if substitute does not conform to the specifica-
tions of the bid, it must be so specifically stated.
Article X — Unfair Practices
The following acts, as described, shall constitute unfair methods
of competition :
(a) The paying of lower wages than prescribed herein or the
operation of hours of labor in excess of the maximum herein pre-
scribed.
(b) The sale or exchange of any product, in whole or in part,
below the seller's cost of such product, in whole or in part, as de-
termined in accordance with the cost and accounting systems referred
to in Article VIII, provided that any seller may sell a product below
his cost to meet the price of any competitor whose price for such
product is not below such competitor's cost. Obsolete material, how-
ever, may be sold at its depreciated value by permission of the Code
Authority.
76
(c) To sell directly or indirectly by any means whatsoever any
product of the Industry covered by the provisions of paragraphs
(j) and (k) of Article VII at a price lower or at discounts greater
or on more favorable terms of payment than those provided in
current net price lists or price lists and discount sheets filed with
the Secretary of the Code Authority.
(d) Withholding from or inserting in, any invoice, words or
figures which make or tend to make such invoice a false record,
wholly or in part, of the transaction represented on the face thereof ;
or the payment or allowance of secret rebates, refunds, credits, un-
earned 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.
(e) To defame or disparage a competitor, directly 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; or advertising, marking, branding, labelling prod-
ucts, and making statements regarding products the purport or effect
of which may be misleading or tend to deceive purchasers as to the
quantity, quality, grade, or substance of the goods purchased.
(f) 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.
(g) To give, or permit to be given, to agents, employees, or rep-
resentatives of customers or to agents, employees, or representatives
of competitors, 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.
(h) To misrepresent to one source of supply, directly or indirectly,
in conducting negotiations as a purchaser oi materials for use in
the Industry, the offer of a competing source of supply.
Article XI — Scope of Code
(a) This code is intended to be a Basic Code and to cover the
entire industry. It is understood, however, that groups of the indus-
try may formulate Supplementary Codes of Fair Practice, defining
that part of the industry and specifying such additional regulations
as may be considered advisable. These regulations, however, shall
conform to the principles of the Basic Code. Such codes, when
approved by the President, shall have the same force as this Code.
(b) The "provisions of this Code shall apply to and affect only that
part of production included in this industry.
(c) In accordance with the provisions of Section 10 (b) of the Act
the President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the Act.
Approved Code No. 117
Registry No. 1399/33
o
Approved Code No. 118
CODE OF FAIR COMPETITION
FOR THE
COTTON GARMENT INDUSTRY
As Approved on November 17, 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, 1D33, for my approval of a Code
of Fair Competition for the Cotton Garment Industry, and hearings
having been held thereon and the Administrator having rendered his
report containing an analysis of the said code of fair competition to-
gether with his recommendations and findings with respect thereto,
and the Administrator having found that the said code of fair com-
petition complies in all respects with the pertinent provisions of Title
I of aid 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 hereby adopt and approve the report, recommendations
and findings of the Administrator and do order that tlie said code of
fair competition be and it is hereby approved, subject to the following
conditions :
A. A committee appointed b}' representatives of several of the
States having heretofore drafted a tentative code or compact con-
cerning prison labor, the purpose of which is the establishment of
fair competition between the products of prisons and the products
of competing private industry, and containing provisions the in-
tention of which is sTibstantially the same as is hereinafter referred
to, the code or compact shall be deemed to be satisfactory under the
requirement in article YIII C of the within code if and so long as
the compact or code adopted by the States provides lor and accom-
plishes the following in relation to the manufacture, sale, and distri-
bution of products made in whole or in part by prisoners :
29178° 20G— 94 34 (77)
78
1. The hours of labor of prisoners shall not be greater than the
hours prescribed in the code of fair competition of the competing
private domestic Industry.
2. Prison products when sold by the prison or through a con-
tractor, whether sold direct or through any agency, shall be sold not
lower than the current price prevailing in the market in which the
product is customarily sold — to wholesalers, retailers, or consumers
as the case may be.
3. Unless it requires a higher price than specified in paragraph 2,
the State shall be paid on all contracts for the labor of prisoners an
amount equal to the cost per unit for labor and overhead of the com-
parable product necessarily paid in competing domestic private
industry.
■i. The hours of oj^eration of productive machinery shall be not
more than is prescribed in the code of the competing private domestic
industry.
5. Nothing in said compact, or code shall affect in any way any
Federal act relating to prison-made products, or any State act passed
or effective under any such Federal act, if said acts are held con-
stitutional and valid.
6. A code authority set up in the compact shall have the power
to administer, supervise, and enforce said code and establish the
prices and costs of prison-made goods as required in paragraphs 2
and 3 above after conferring with the code authority of the affected
industrj^, from which decision an appeal shall be allowed to the
President of the United States.
7. The code authority set up in the compact, after an investiga-
tion which shall include a consideration of economic, trade, and
market conditions, shall (1) formulate such regulations as may be
consistent and lawful and as may be necessary to assure a diversifica-
tion of the output of " prison industries " in fair proportion to the
production of anj^ competing private domestic industry affected,
and (2) prohibit the expansion of any existing prison industry which
is causing a disproportionate competition with any private domestic
industr3^
8. Such other provisions as will assure a fair basis of competition
not inconsistent with the above.
B. That the application of section G of article IV be and hereby
is stayed as to members of the industrj^ located in the State of Ken-
tucky and in those counties in the States of Illinois and Indiana
which border on the Ohio River for such period as the Adminis-
trator shall determine, which period shall not exceed four (4)
months from and after the effective date of the aforesaid Code of
Fair Competition for the Cotton Garment Industry, that during such
period the said members of the industry located in the State of
Kentucky and in those counties in the States of Illinois and Indiana
bordering on the Ohio River shall be included in the southern sec-
tion of the industry for the purposes of the aforesaid article IV,
that during such period the administrator shall hold such hearings
and cause such investigations to be made as he may deem necessary
to determine the classification of the above area for the purposes of
the aforesaid article IV and that prior to the termination of such
79
period, the Administrator shall determine the classification of the
said area for the purposes of said article IV of the said Code of
Fair Competition for the Cotton Garment Industry.
FRAXKLIX D. ROOSEVELT.
Approval recommended :
Hugh S. Johnsox,
Adimnistrator.
The "White House,
Noveinber 17. 1933.
November 7, 1933.
The President,
The White House.
Sir : A proposed code of fair competition for the Cotton Garment
Industry was submitted to the Administrator on July 20, 1933, and
public hearings Avere held on August 2nd and 3rd. The revision of
the code was then begun by the principal interested parties and a
number of subsequent hearings were held. Revised versions of the
code were resubmitted on September 6th, September 19th, and Sep-
tember 25th. The long delav which resulted before the code could be
recommended for approval has not been due to any irreconcilable
differences of opinion with contending factions refusing to give
ground. The delay has resulted almost entirely from the fact that
the Cotton Garment Industry has many ramifications and that time
has been required to work out code provisions which could equitably
apply to the different parts of a complicated structure and, more
particularly, which would reduce so far as possible conflicts of
jurisdiction.
The sponsoring organization for the code was the International
Association of Garment Manufacturers, Avhich is also a federation of
smaller associations which represent subdivisions of the industry.
At the time of the hearings the International Association of Garment
Manufacturers had more than 275 members who were grouped in the
following divisions :
Work Garment Manufacturers Division.
Union-Made Garment Manufacturers Division.
Men's Shirt Manufacturers Division.
Men's Wash Suit Manufacturers Division.
Work Shirt Manufacturers Division.
Pajama Manufacturers Division.
Athletic Underwear Manufacturers Division.
Men's Collar Manufacturers Division.
Cotton Wash Dress Manufacturers Division.
Boj^'s Shirts and Blouse Manufacturers Division.
Waterproof Cotton Garment Manufacturers Division.
Heavy Cotton Outerwear and Combination Leather Garment
Manufacturers Division.
The number and variety of the articles thus manufactured seemed
sufficiently great. Since the first public hearings, however, the asso-
ciation, through direct membership or affiliations, has come to rep-
resent oiled cotton garments, nurses' and maid's uniforms, washable
service apparel and pants (chiefly of cotton content). The Code,
according to the terms of Article II, covers the manufacture of
fourteen articles or garments. The International Association of
Garment Manufacturers appears to represent more than 75% of
the production of each article. It now has 395 members, with 110
(80)
81
applications for membership on file, and claims that the total vol-
ume of business of its members amounts annuall}^ to $332,000,000,
approximately 80% of the total production.
DeI'INITIOX
As was pointed out at the conclusion of the first hearings, the
Cotton Garment Code Avas presented for a trade association rather
than for an industry. Indeed, it was doubtful whether there should
be such an industry, at least with definitions as broad as those in the
Code. There were no codes for the Woolen Garment Industry or the
Silken Garment Industry. Codes had been presented for men's
clothino;, for coats and suits and for dresses. The manufacturers
under those codes use wool, silk, and cotton. From the operation of
these codes the proponents of the Cotton Garment Code sought to ex-
clude all manufacturers whose products were chiefly of cotton content.
Even if disinterested efforts are made to put industries and their
subdivisions as logically and as fairly as possible under appropriate
codes, difficulties are certain to arise. Definitions cannot be written
so clearly and comprehensively as to eliminate all doubts and contro-
versies as to jurisdiction. Special difficulties are invited, however,
when a code is joresented by a trade association which is a federation
of other trade associations and which naturally wishes to bring into
its membership as many units as possible. During the hearings such
a federation Avas justified on the princi})le that all articles which
would be manufactured under the aegis of the federation would con-
tain cotton and that the number of codes for the garment industries
would be reduced in number by grouping together a number of
industries or subdivisions.
One important reason, however, for the popularity of the Cotton
Garment Code — that is to sa}^ for the desire of certain industries to
come under it — was the expectation that the Cotton Garment Code
would be less onerous on manufacturers than any otiier code which
was adopted for any one of the needle trades. The hours proposed
were high and the Avages projDosed Avere low. It is these hour and
Avage provisions which haA'e been responsible for the mariage de
convenance betAveen cotton dresses and leather clothing, between
pants and nurses and maids uniforms, betAveen pajamas and Avork
clothing, and betAveen children's pla}^ suits and oiled cotton gar-
ments. Much of the delay exj)erienced in the completion of this
code is attributable to tlie hetei'ogeneous coAerage of the Code and
to the fact that difficulties as to jurisdictions and prospects of unfair
competition have become a]:)parent before the Code goes into effect.
Three examples of these difficulties may be cited : cotton Avash suits,
pants, and linen dresses.
On the first tAVO questions a number of hearings Avere held. The
third question will haA'e to be dealt Avith shortly, for the makers of
cotton wash dresses haA-e been accustomed to make linen dresses.
Linen dresses, hoAvever, Avill probably be under the Dress Code. This
difficulty Avill have to be dealt Avith later by putting all dresses under
the same code Avith appropriate Avage differentials covering the man-
ufacture of wash dresses which requires less skill than does the
manufacture of more dressy dresses.
82
The difficulty was much the same in the case of men's wash suits.
These, when chiefly of cotton content, were excluded from the Men's
Clothing Code which went into effect on September 11th, and the
expectation was that they would be covered by the Cotton Garment
Code. It appeared, however, that many men's clothing manufac-
turers made cotton wash suits. They would thus be under two codes.
It appeared also that the cotton wash suit manufacturers, located
largely in New Orleans, made linen suits which were cut and sewn
at the same time as their cotton suits. After several conferences and
hearings, the New Orleans and other wash suit manufacturers joined
Avith the Men's Clothing Code Authoiity in urging the desirability
of the Men's Clothing Code covering all men's summer clothing,
washable and nonwashable. with appropriate wage differentials
recognizing that a different class of labor from that employed in the
manufacture of Avoolen suits can be used in the manufacture of
summer clothing and that the seasonal nature of the summer cloth-
ing industry may require tolerance in certain periods, in respect of
the number of hours per week that may be worked.
The difficulty as to pants does not lend itself to such an easy
solution. " Work pants and men's and boys' pants in chief content
of cotton "' are under the Cotton Garment Code. " Single knee pants
and single pants " are under the Men's Clothing Code. Promptly
as the Men's Clothing Code went into effect, on September 11th,
complaints were made by manufacturers under the Men's Clothing
Code that other manufacturers making precisely similar articles
claimed that they were chiefly of cotton content and therefore came
under the Cotton Garment Code, with forty instead of thirty-six
hours as the maximum week and 321^^^ instead of 40^ per hour as
the minimum wage. Some of these manufacturers, it should be
noted, had been members of one of the associations proposing a
Men's Clothing Code. They were then men's clothing manufac-
turers but when it appeared that the Men's Clothing Code would
have high standards they became cotton-garment manufacturers.
This difficulty, it appeared, could not be satisfactorily dealt with
by a change of definitions. Manifestly the object of the Recovery
Act — the spread of employment and the increase of wages — w^ould
be negatived by placing all pants manufacturers on a forty hour and
321/20 basis. Manifestly, also, employers could not be expected to
continue under the Men's Clothing Code if other employers in direct
competition and producing the same article were permitted to oper-
ate under a code which was more favorable to them. That would
be unfair competition of a most vicious character.
It was proposed, therefore, that the Administrator designate a
pants expert who would investigate the extent and character of the
manufacture of pants under the Men's Clothing Code and the extent
and character of the manufacture of pants AAiiich the Men's Clothing
Code Authorit}^ claimed was unfair competition and then make
recommendations as to administrative determinations in particular
cases — that is, determination as to Avhether individual manufacturers
were properly under the Men's Clothing Code or under the Cotton
Garment Code. Such an appointment has been made. This action
docs little more than anticipate the action contemplated by Article
II, Section D of the Cotton Garment Code, which pro\ddes that if
83
there is a dispute as to whether an employer is subject to the provi-
sions of the Cotton Garment Code or another code, the dispute shall
be settled by the two code authorities involved, and in the event of
a disagreement, by the Administrator. In this case, because quick
action was desirable, it was assumed that the code authorities would
be unable to agree and steps have been taken to secure the expert
advice which will make it possible for the Administrator to render
equitable decisions. It may be added that this procedure was sug-
gested three weeks before it Avas accepted by the representatives of
the International Association of Garment Manufacturers, wdio in-
sisted on two hearings before they consented to an investigation by
an expert.
In this connection attention should also be called to the provision
of Article II of the Code which specifically provides for prompt
hearings for the further review of the status of cotton wash dresses,
cotton wash suits, and cotton pants, in order to determine whether
the definitions shall be modified or eliminated, and the disposition
to be made of these subdivisional industries. That the Administra-
tor is empowered thus to act is the inarticulate premise of any code,
but because of the considerations set forth above it is proper in this
case to make the premise articulate.
It is not possible here to discuss in detail all the matters which
were relevant to determination of what, for the time being, the Cotton
Garment Code should cover. Illustrations have been given of the
more important problems which had to be settled. After the hear-
ings and while the code was in process of final formulation, a code
was presented for aprons and nurses' uniforms. It was evident,
however, that many manufacturers in the International Association
of Garment Manufacturers made aprons and nurses' uniforms, and
that a separate code for these articles would mean that some manu-
facturers of them would be under one code and some manufacturers
under another code. This particular problem was easily solved by
the affiliation of the Apron and Nurses' Uniform Manufacturers'
Association with the International Association of Garment Manu-
facturers. The pajama and shirt problems had been settled the same
way, with the respective trade associations retaining their identity
and having representation on the Cotton Garment Code Authority.
For a time the Rain Wear Industry sought to come under the Cotton
Garment Code on the theory that rain wear has a cotton content.
Some of the principal manufacturers of rain wear do the bulk of
their production in rubber articles which are not wearing apparel,
and a designation of manufacturers of rain wear as manufacturers
of rubber seemed more satisfactory than any other solution.
Hours and Wages
It is obvious that with the difficulties described above in respect
of definitions, the determination of the minimum wages and maxi-
mum hours was not a simple problem. It would not have been
simple even if there had not been made any demands for differentials
and preferential treatment.
In most branches of the industrj'' long hours have been worked
and low wages have been paid. The earnings of shirt workers have
been the subject of a special investigation by the Bureau of Labor
29178° 20G— 94 34 2
84
Statistics. In 1927 the average annual earniags of shirt workers
were $752; in 1931 they were $574; and in 1932, $486. The wages
are so low that the proposed minimum for the northern section of the
country of $13.00 per week is 78% higher than the median weekly
wage reported by the Bureau of Labor Statistics and should affect
75% of all the workers. In the Heavy Outer Garment Industry
wage levels are higher. In the Work Shirt Industry wage levels
are even lower than in shirts and the Code provides that the Work
Shirt Division shall have an opportunity to make out a case for it
not being able to pay its employees the minimum which the Code
provides. Save in the case of the Sheep Lined and Leather Gar-
ment Industry it seemed impossible at the present time to differenti-
ate in respect of minima for unskilled workers or to afford any
pro'.ection to skilled workers above the minimum scale.
There are no accurate estimates as to the extent of unemployment
which has existed in the Cotton Garment Industry and no figures
Avhich would indicate the number of workers who would be unem-
ployed as a result of a limitation of the number of hours. Conse-
quently the number of hours per week has been fixed rather arbi-
trarily at forty. In certain sections of the country this will be a
drastic reduction for some of the subdivisions have been working
fifty and sixty hours per week. The Code Authority is asked to
report promptly on the reemplojnuent which results from the reduc-
tion to forty hours so that the Administrator ma}^ decide whether
there shoulcl be a further reduction.
It was necessary, in the Cotton Garment Code, to make provisions
for both learners and incapacitated employees so that there could
be some deviation from the minimum wage scale. With respect to
the first group it was argued that employers could not afford to pay
the minimum to unskilled workers; that the increased labor costs
w^hich would result from a minimum for skilled workers was as
much as, and perhaps more, than the industry could bear. Unless
carefully limited, however, permission to employ learners will result
in widespread evasions of the minimum-wage provisions. Conse-
quently the Code, as recommended, limits the number of learners
that may be employed in any one establishment at the same time,
to 10% of the total number of employees; defines learners as those
that have not been engaged in the industry for more than six weeks
and stipulates that if on a piecework basis the learner earns more
than the 75% of the minimum wage to which he is entitled during
the learning period, then he shall receive his earnings.
The problem of substandard and incapacitated employees also had
to be dealt with. If no provisions had been inserted in the Code, the
tendency would have been for employers to dismiss substandard and
aged employees in order to secure more efficient workers who, on the
basis of the prevailing piece rates, would be able to earn the minimum
which the Code stipulates. Obviously such a result should be
avoided and the code, therefore, permits 10% of the total number
of employees to be in a substandard class.
Southern Manufactitrers
These provisions as to learners and substandard employees were of
great interest to Southern manufacturers. The International Asso-
85
elation of Garment ISIanufacturers has many members in the South
and at the public hearings spoke for the entire industry with its truly
representative character not challenged. The only voice of protest
raised at the public hearings was on behalf of Kentucky and its in-
clusion in the Southern section of the country.
The delay which occurred between the conclusion of the public
hearings and the recommendation of the Code for approval afforded
an opportunity for Southern protests to gain in number and volume.
The protests came from inclividual manufacturers and from the
Southern Garment ISIanufacturers Association, which claimed to be
much more representative of Southern manufacturers than was the
International Assocation of Garment Manufacturers. These protests
alleged that the unproductive nature of Southern labor warranted
a larger differential than 21/2^. per hour, which the Code proposed
to allow. There was a strong demand also for a liberalization of the
learner and substandard employee provisions. It was alleged that
the employees of many Southern manufacturers are, in comparison
with employees of Northern manufacturers, so inefficient that if on
the same piece-rate basis a Northern employee earns the minimum
the Southern employee will not, and the difference Avill have to be
made up b}^ the employer.
Individual Southern manufacturers and the Southern Garment
Manufacturers Association were given several hearings and every
opportunity to present data in support of their allegations. Little
data was presented. There were many general allegations that
Southern manufacturers as a class would find it hard to operate
under the Code, but in no case was it shown convincingly from pay
rolls or production methods that an employer needed more than 10%
learners or 10% substandard employees or that his average workers
were less productive than Northern workers. At the same time, the
Administrator received many protests from individual Southern
manufacturers against any further differential for the South. These
manufacturers said that they were able to operate successfully under
the provisions which were contemplated and that if other Southern
manufacturers found these provisions onerous, the reason was their
own inefficiency and not the severity of the provisions.
In the absence of definite data there was nothing before the Ad-
ministrator to justify any more preferential treatment of Southern
manufacturers than that which was acceptable to the International
Association of Garment Manufacturers. The Code as recommended,
however, instructs the Code Authority to make prompt investigations
and to report to the Administrator the effects of operations under
its provisions. Specifically in the case of substandard employees it is
provided that '" the Cotton Garment Code Authority shall report to
the Administrator, from time to time, as to the effects of the operation
of this iDrovision both generally and in cases of individual hardship
BO that the Administrator may determine whether or not the pro-
visions of this section shall be changed or exceptions granted here-
under." This, it is believed, affords Southern manufacturers —
and other manufacturers as well — a way of securing relief if, be-
cause of peculiar situations, they are entitled to relief and their
securing it will not permit them to compete unfairh'.
The same principles appl}' as to the line which is drawn between
the Northern and Southern Sections of the country. The line be-
86
tween North and South, as drawn in the code, is the line proposed to
the Administrator as the considered judgment of the manufacturers
represented on the Code Committee of the International Association
of Garment Manufacturers with one exception : The inclusion of cer-
tain factories in the vicinity of Paducah, Kentucky, in the Southern
section for a six months' period. The original definition omitted
Kentucky from the South and many protests were received. Pro-
tests were also received against the inclusion of Maryland in the
North. On the other hand, if Maryland had been included in the
South there would have been protests from Pennsylvania manu-
facturers. If Kentucky were in the South, there would be protests
from Indiana, Missouri, and West Virginia. Protests have already
been received against the temporary arrangement for Paducah.
Any line which is drawn will be subject to criticism ; for no matter
where the line is drawn manufacturers a few miles on either side of
it, employing the same class of labor and making the same kind of
articles, will have wage scales which differ by the amount of the dif-
ferential which the Code allows. There were no data before the
Administrator which justified him in disregarding the recommen-
dation of the International Association of Garment Manufacturers
in its code as submitted and arbitrarily ruling that the South should
include certain states. The Code as recommended, however, in-
structs the Code Authority to report to the Administrator with re-
spect to differentials between the Northern and Southern sections of
the country and the Administrator may determine whether or not
the line should be redrawn. The South which is entitled to a dif-
ferential is not the historic South, the climatic South, or the Solid
South. It is the South in which labor is less productive than in the
North. A line can be drawn intelligently only if data on lower
productivity are available. If Southern manufacturers present ade-
quate data to the Administrator, then the Administrator can elimi-
nate any injustices which now exist. On the basis of the sentimental
and historic arguments which were made at the hearings, it was
impossible to act.
Code Authority
At one of the later public hearings the Southern Garment Manu-
facturers Association raised the question a,s to the truly representa-
tive character of the International Association of Garment Slanufac-
turers in respect of the South. The Southern Garment Manufac-
turers Association asked for an amendment of the Code so that the
South would be represented on the Code Authority.
It would seem undesirable to write in the Code anj^ provisions for
sectional representation. The Administrator, under the Code, re-
serves full powers to re-examine the constitution of the Code Author-
ity and to order its reconstitution so as to make it more representa-
tive. The Administrator has authority to appoint one or more
members to the Code Authoritj^ and he will exercise that power to
appoint for the time being to the Code Authority, a representative
of the Southern Garment Manufacturers Association so that this
Association will be in a position to bring to the attention of the
Administrator any situation which will warrant the latter in using
the power which he reserves to himself under Article IX, Section D,
of the Code.
87
The Code as Revised and Recommended
The Code, as revised and recommended, may be summarized as
follows :
Article I states the purposes of the Code.
Article II gives the definitions.
Article III establishes forty hours as the maximum number of
hours per week for manufacturing employees in the Industry and
its subdivisions.
Article IV provides a minimum wage of 32i/o^ per hour in the
Northern section and 300 per hour in the Southern section, with
special provisions for operators and cutters in the Sheep Lined and
Leather Garment Industry and with carefully drafted safeguards
covering the exceptions of learners and substandard employees. It
also defines the Southern section of the country and provides for
various investigations as to the effects of the wage and hour provi-
sions of the Code.
Article V limits the use of productive machinery, except cutting
machinery, to one shift.
Article VI contains the Code's general labor provisions and sets
forth the mandatory provisions of Section 7 (a) of the National
Industrial Recovery Act.
Article VII abolishes home work after three months, with one or
two minor exceptions.
Article VIII deals with the sale of prison-made goods.
Article IX sets up the Cotton Garment Code Authority and
confers on it certain powers.
Article X contemplates the presentation of additional codes of
fair-trade practices for the subdivisional industries under the Code.
Article XI sets forth certain unfair-trade practices.
Article XII permits the Code Authority, upon approval of the
Administrator, if it is deemed necessary, to put into effect certain
provisions with reference to NRA labels.
Article XIII reserves to the President the right to amend, cancel,
and modify any provision of the Code.
Article XIV declares that nothing in the Code shall be construed
to promote monopolies.
Article XV permits applications for exemptions from or a stay
of the Code.
Article XVI warns against unnecessary price increases.
Article XVII makes the effective date of the Code the first Mon-
day following the first Wednesday after the date of approval by
the President.
Prison Lahor
The Code as submitted by the International Association of Gar-
ment Manufacturers contained a provision prohibiting members of
the industry from manufacturing or causing to be manufactured,
or acquiring, selling, or distributing prison-made garments and from
purchasing textiles or raw materials from penal, correctional, or
reformatory institutions after certain date.
Protests were received from various prison officials and at least
one Governor against including in a Code of Fair Com[)etitioii
88
any provision interfering with the sales and distribution of prison-
made goods. The protestants argued that it was essential from
a social point of view that prisoners be taught a trade and be kept
busy; that the provision proposed was an indirect attempt to regu-
late functions of a State which are exclusively within the prerog-
atives of a State; that it was impossible for a Code under the
National Industrial Recover}^ Act to interfere with a manner in
which States attempt to care for the health and well-being of their
wards and that the proposed provision would unfairl}' deprive the
States of a proper source of revenue and directly destroy the value
of a large amount of invested capital in the form of a plant, good
Avill, and general investment.
On the other hand, the proponents of the Code argued that the
competition of prison-made goods with goods made b}' free industry
was sufficiently large and so concentrated in certain cases as to permit
prison producers to dictate the price of certain articles and thus ad-
versely to affect the wages, hours, and conditions of labor in the free
branch of the industry. Two examples adduced by the proponents
of the Code to show the extent of the concentration of prison pro-
duction were those of work shirts and work pants. In 1932 prisons
produced and sold on the open market almost 20,000,000 work shirts.
The free factories in that j^ear produced 02,000,000 work shirts, or
about 75% of the total. In the same year, prisons produced almost
7,000,000 work pants, while the free factories in the industry pro-
duced 27,000,000 Avork pants, or about 80% of the total. It was con-
tended by the International Association of Garment Manufacturers
that the prison products in each case naturally affected market prices
and were in a large measure responsible for the substandard labor
conditions in the industry.
The interested prison officials did not refute the contention that
prison competition inevitably undermines standards prevailing in
the free branch of the industry, nor that such continued competition
would endanger the success of a Code of Fair Competition which
aimed to raise standards higher than they are at the present time.
Certain prison officials presented their cases with an eye on their
own special problems and leaned on the broad shoulders of States'
Rights and the plea ad hominem that idleness leads to moral break-
down and violence.
The proponents of the Code, on the other hand, argued that they
were making no attempt to limit the State in its activities or to do
more than bind those properly subject to their Code of Fair Compe-
tition. They conceded idleness of prisoners to be an evil but argued
that their proposed provisions did not shut the door to educational
and vocational training and all other prison activities which did not
compete with free industries. In this connection it should be noted
that nine states at present do not sell prison products in the open
market. These states include such thickly populated areas as New
Jersey, New York. Ohio, and Massachusetts. Nine States have
adopted the system of producing for State use alone. Therein lies
one solution to the problem. Other solutions which have been put
into practice, are the diversification of products made in prisons and
increasing emphasis on truly educational and vocational activities
instead of on unfair profit seeking factory production.
89
The proponents of the Code have an unassailable position in argu-
ing that it would be impossible for manufacturers under the Code
to stay in business if prison goods continue unfairl}' to compete with
goods produced in free plants ; that this competition in the past has
led to sweat-shop and substandard conditions in the open branch of
the industry and that unless checked it will be impossible for manu-
facturers to meet the standards of operation of the Code and sta}^ in
business. The proponents of the Code are on unassailable ground
as well, in arguing that the elimination of prison competition m Cot-
ton Garments will not make more acute social problems which many
prisons have seriously attempted to solve but which other prisons
have been holding up as a shield to cloak profit seeking and
exploitation.
Findings
The Administrator finds that:
(a) The 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; and that
(b) The International Association of Garment Manufacturers
imposes no inequitable restrictions on admission to membership
therein and is truly representative of the Cotton Garment Industry ;
and that
(c) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I of the
National Industrial Recover}^ Act.
I recommend that the Code be approved.
Respectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
COTTON GARMENT INDUSTRY
Article I — Purposes
To effectuate the policy of Title I of the National Industrial Ke-
covery Act and aid in reducing and relieving unemployment, improv-
ing the standards of labor, and eliminating competitive practices
destructive of the interests of the public, employees, and employers,
the following provisions shall constitute the Code of Fair Competi-
tion for the'^Cotton Garment Industry and shall be binding upon
every member thereof.
Article II — Definitions
A. As used in this Code the term " Cotton Garment Industry "
means and includes the production by any of the following processes;
(a) cutting, (b) creasing, (c) sewing (all or part of the garment),
(d) trimming, (e) pressing, (f) finishing, (g) examining and in-
specting, (h)"boxing, or all of them, of any article or garment known
as (1) Avork clothing, work garments, work pants and children s
play suits; (2) men's shirts, including knitted outer shirts and polo
shirts; (3) boys' shirts and blouses; (4) boys' wash suits; (5) work
shirts of any material, includinoj flannel shirts; (6) pajamas and
niMitshirts;"'(7) men's collars; (8) cotton wash dresses; (9) oiled
cotton garments; (10) men's and boys' pants m chief content ot
cotton; (11) sheep lined and leather garments; (12) nurses and maicls
aprons and uniforms; (13) washable service apparel; (14) mens
cotton wash suits. , o -, /^ i -, 4
The products covered bv Section A, paragraphs 8, 10, and 14, are
included in this Code pending the prompt holding of such further
hearino- on such notice as the Administrator in his discretion may
fix. and the final determination of whether the definitions of any of
them shall be modified or eliminated or whether any of the sub-
divisions shall continue to be included in this Code.
B. " Cotton Wash Dresses " as used herein means and includes
those house dresses and dresses made in chief content of cotton which
in the custom and practice of the trade are merchandised m what
is known in the trade as the house dress or wash dress departments
of recognized department stores and other retailers of women s gar-
ments, "and which cotton dresses, under the established custom and
practice of the trade, are customarily bought from the manufacturer
bv or sold by the manufacturer to, the buyer of house or wash
dresses. And the term "Cotton Wash Dress Industry" as used
herein means and includes that industry engaged m the manufacture
of such cotton wash dresses. -, i • • i
C. The term " Washable Service Apparel as used herein is de-
fined to mean cotton coats ; trousers ; waitresses', nurses , and maids
(90)
i
91
service garments, aprons, service caps, and other kindred service
garments manufactured for direct distribution to linen supply service
companies, hotels, hospitals, institutions, and other consumers.
D. If and when, because of the character of any product made by
any employer, or by any subdivisional industry, there arises any
dispute as to whether such product is covered by the provisions of
this or another code, the code authorities concerned will report to
the Administrator the code under which such product properly
belongs and in the event that the code authorities are unable to
agree within a reasonable time, the Administrator may, after notice
and hearing, decide under which code the product or subdivisional
industry manufacturing the same is covered.
E. The term '* member of the industry " includes anyone engaged
in the industry as above defined, either as an employer or on his
own behalf.
F. The term '' Manufacturer •' as used herein means and includes
(1) anyone who buys materials and manufactures them under the
processes named in subsection A of Article II hereof into finished
garments, (2) anyone who buys the materials and performs the
cloth-cutting operation and contracts other operations, retaining
legal title to the goods, or (3) a contractor who receives materials
in cut form and does the sewing operations and an}^ additional
operations (except cutting).
G. The term " contractor " as used herein means and includes anj'^-
one engaged in the making of cut materials into finished products
suitable for use but not intended for his own distribution, who owns
and operates his own plant, hires his own labor ^for that purpose-
but who receives cut-piece goods from another for the purpose or
making same into finished garments and who in the operation of
his business renders this service in the course of an independent
occupation, the relationship being such that legal title to the goods
to be manufactured is retained by the one for whom the contractor
is finishing the product.
H. The term '• manufacturing employee " as used herein means
and includes anyone who is engaged in (a) cutting, (b) creasing,
(c) sewing (all or part of the garment), (cl) trimming, (e) pressing,
(f) examining, (g) inspecting, or (h) finishing, of any garment
produced in the industry.
I. The term " nonmanufacturing empWee " as used herein means
and includes all persons engaged in the Cotton Garment industry,
but not included in any of the classifications of subsection H above.
J. The term '' employer " means anyone by Avhom any such em-
ployee is compensated or employed.
K. The terms "' President ", "Act ", and '"Administrator " as used
herein mean respectively the President of the United States, the
National Industrial Recovery Act, and the Administrator of ^aicl
Act.
Article III — Hours
A. No manufacturing employee shall be permitted to work in
excess of 40 hours in any one week, or more tlnin 8 hours in any one
day, provided, however, that the Cotton (Jarment Code Authority
shall, immediately after the effective date begin an investigation
92
under such rules and regulations as to reports as the Code Authority
may require and the Administrator approve, to determine whether
or not the 40-hour week provision of this section is resulting in in-
creased employment, and the said Code Authority shall report its
findings on this question to the Administrator not later than CO
days after effective date, so that tlie Administrator may determme
whether or not the provisions of this Article shall be changed. In
respect of cutters, the Code Authority, immediately after the effec-
tive date, shall begin an investigation under such rules and regula-
tions as to reports as the Code Authority shall determine, to ascer-
tain whether the 40-hour week provision of this Article as to cutters
undulv handicaps factory operations and whether or not overtime
should be recommended as to cutters. The Code Authority shall
report thereon within GO days after the effective date hereof, so that
the Administrator may determine whether or not t.ie provisions of
this Article shall be changed.
B. Within GO days after effective date hereof, the Cotton Gar-
ment Code Authority shall report to the Administrator as to the
result of the maximum hours for the Sheep Lined and Leather Gar-
ment Industry provided for in the preceding paragraph, so that the
Administrator may determine whether or not the provisions of this
Article shall be changed.
C. No office employee (including accounting, clerical, and steno-
graphic help) shall be permitted to work in excess of 40 hours per
week averaged over any three months' period. Secretaries, factory
department'^ heads, and executi^-es earning more than $35.00 per
week are exempted from this provision.
D. As to all nonmanufacturing employees other than those in-
cluded in paragraph C immediately preceding, the Cotton Garment
Code Authority shall, on or before March 1, 1934, submit to the
Administrator a recommendation as to maximum hours for these
classes.
E. The provision for maximum hours constitutes the maxnnum
hours of labor per week for the employee covered so that under no
circumstances will such an employee be employed or be permitted
to work for one or more employers in the industry in the aggregate
in excess of the prescribed number of hours in a single day or
single week.
Article IV — Wages
A. Except as hereinafter provided, no employee (except actual
learners in the industry during a period not to exceed six weeks'
apprenticeship and outside employees) shall be paid at less than the
rate of 30 cents per hour per 40-hour week when employed in those
states included within the southern section of the industry, nor at
less than the rate of 32yo cents per hour per 40-hour week when
employed in those states included within the northern section.
B. in the Sheep Lined and Leather Garment Industry, no manu-
facturing employee shall be paid at less than the rate of 35 cents
per hour per 40-hour week; no operator shall be paid at less than
the rate of 45 cents per hour per 40-hour week ; and no short knife
cutters shall be paid at less than the rate of 75 cents per hour per
40-hour Aveek.
93
C. The number of learners employed at any time by any mem-
ber of the Cotton Garment Industry in his plant or factory shall
not exceed 10 percent of the total number of manufacturing em-
ployees in said plant. Each learner shall receive not less than 75
percent of the minimum wage, provided, that if on a piecework basis
a learner earns more, then he shall be paid what he earns ; and pro-
vided, further, that the maximum six weeks' period as to learners
shall apply to the total period of apprenticeship in the industry
whether in one manufacturing plant or another. Any member of
the industry may apply to the Code Authority for a modification of
this provision, and upon showing of extreme hardship the Adminis-
trator may grant such modifications after review and report Avith
recommendations by the Code Authority.
D. Within three months from the eflfective date, the Cotton Gar-
ment Code Authority shall report so that the Administrator may
determine whether or not the provisions of section C shall be
changed.
E. Each member of the industry shall make periodic reports, as
required by the Cotton Garment Code Authority, showing in each
instance the number and names of learners employed and the
extent of time so emploj^ed.
F. Employees partially incapacitated by age. injury, or infirmity
shall be exempted from the minimum-wage provisions; provided,
however, that such employees shall be paid no less than other em-
ployees in the same factory proportionately to the amount or char-
acter of the Avork they do; and, provided further, that the number
of such privileged employees shall not exceed 10 percent of the total
number of manufacturing employees engaged in the same factory.
Employers shall report monthly to the Cotton Garment Code Au-
thority the names of those included in this class and the reasons
therefor, and the Cotton Garment Code Authority shall report to
the Administrator within three months and from time to time as to
the effect of the operation of this provision, both generally and in
cases of individual hardship, so that the Administrator may deter-
mine Avhether or not the provisions of this section shall be changed
or exceptions granted hereunder.
G. For the purpose of this Article, the states which shall be
included in the southern section are: Alabama, Arkansas, Florida,
Georgia. Louisiana, Mississippi, New Mexico, North Carolina, Okla-
homai South Carolina, Tennessee, Texas. Virginia. All other states
and the District of Columbia shall be included within the northern
section of the industry, except that for a period of not to exceed
six months after the effective date of this Code the northern-section
provisions of this Article shall not apply to factories operating under
this Code which have been established between January 1, 1933. and
September 1. 1933, in the area Avithin 50 miles of the northern bound-
aries of Tennessee and Arkansas.
H. The Cotton Garment Code Authority shall, from time to time,
report to the Administrator as to the effect of the operation of Sec-
tion G, so that the Administrator may determine Avhether or not the
pi'ovisions of that section shall be changed. The differentials pro-
\ided for in this Article as betAveen the northern and southern sec-
94
tions shall not apply to the Sheep Lined and Leather Garment
Industry. .
I. No chano^es in piece-rates and no increases m the amount oi
production or^vork of week Avorkers shall be made for the purpose
of evading the benefits to manufacturing employees prescribed by
this Code in respect of wages and hours of employment. All
requirements in respect of such increases shall be reported to the
Cotton Garment Code Authority and failure to so report shall
constitute a prima facie violation of this section.
J. The Work Clothing and Work Shirt Industries of the Cotton
Garment Industry, may present to the Administrator such mem-
oranda as the said Work Clothing and AVork Shirt Industries may
deem proper in relation to the effect of the minimum wage scale ot
this Article and other economic factors, upon the sale price of work
clothin<r and work shirts manufactured in such industries, so that
the Administrator, after due notice and hearing, may determine
whether anv changes shall be made in the wage provisions of this
Code with respect to the Work Clothing and Work Shirt Industries.
K. This Article establishes a minimum rate of pay, regardless ot
whether an employee is compensated on a time-rate, piecework, or
other basis.
L The Cotton Garment Code Authority shall, as soon as prac-
ticable, set up a committee to investigate the wage scales for cutters,
to determine whether the wages paid said cutters tend to eflectuate
the purposes of the National Industrial Kecovery Act. The said
committee shall also investigate differentials in wages paid to other
employees receiving above the minimum to determine whether such
differentials permit unfair competition in the Cotton Garment
Industry. . -.i i-
M Nothing in this Code shall be construed to interfere with, alter,
chano-e, or abrogate any existing contract between employer and
employee in respect of wages above the minimum, or hours below
the maximum herein provided.
Article V — Machinery Control
A. No member of the Cotton Garment Industry shall operate pro-
ductive machinery used in any of the processes enumerated in Sec-
tion A of Article II, except cutting machinery, for more than one
shift of 40 hours per week. If any member of the Cotton Garment
Industry has customarily operated productive machinery on a double-
shift basis, said member of the industry may make representations
to the Cotton Garment Code Authority as to the facts and conditions
requiring more than a single-shift basis in his particular plant or
plants and may request a special exemption to operate on a double-
shift basis; it being agreed that such application may be granted by
the Administiator upon recommendation of the Code Authority,
but only for the purpose of meeting contractual obligations existing
on the effective date, or of preventing discharge of employees, or of
otherwise removing any unusual difficulties or hardships in the
application of this Article. Any deviations from the provisions of
this section, however, shall be deemed a violation of the Code un-less
the said application is made and approved as provided herein.
95
Article VI — General Labor Provisions
A. No person under 16 years of age shall be employed in the
Industry.
B. 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 emploj^ers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the i)urpose
of collective bargaining or other mutual aid or protection.
C. 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
D. 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.
E. 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, Avages, hours of labor, or health, fire, or
general working conditions than under this Code.
F. Employers shall not reclassify emploj-ees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
G. Each employer shall post in conspicuous places accessible to
employees full copies of this Code or all portions of this Code con-
cerning labor aud working conditions.
Article VII — Home Work
A. After three months from the effective date, no member of the
industry shall have any sewing-machine work done on any garment or
any part thereof in the private home of any worker, but all such
sewing-machine w^ork shall be done in the plant of the member of the
industry producing such garment ; provided, however, that any mem-
ber of the industry may apply to the C-otton Garment Code Authority
for exemption from the provisions of this Article for what is known
in the trade as turning collars Avhich have a laundry wash in the
factory before shipping', provided, also, that home work on hand
embroidery, which is incidental to the manufacture of cotton gar-
ments, may continue, and that within three months the Cotton Gar-
ment Code Authorit}' shall report on the home-work problem so that
the Administrator, after due notice and hearing, may detei'mine
whether or not this provision shall be changed. Each member of the
industry shall report at once to the Cotton Garment Code Authority
the names of any individuals em])loyed under the provisions of this
section and the reasons for such employment, and after the effective
date, no member of the industry sliall increase the number of persons
so employed prior to July 15, 1933.
Artkt.e VIII — Prison Labor
A. No member of the industry shall nuinufacture or cause to be
manufactured, acquire, sell, or distribute any garment, textiles, or
supplies produced by prisoners, except prisoners on parole, or pro-
96
duced in any tax-maintained penal or reformatory institutions;
except that any member of the industry Avho, prior to September 1,
1933, entered into a bona fide contract for the purchase of any
garments or textiles made by prisoners, may, until January 1, 1934,
accept delivery of said garments or textiles included within the
terms of said contract, and may thereafter sell those particular
garments, or garments made from those particular textiles.
B. Provided, however, that the provisions of paragraph A are
hereby stayed until January 1, 1934, for the purpose of permitting
those states of the United States, which so choose, to formulate,
enter into, and make effective a compact or agreement, and thereby
satisfying the Administrator that merchandise produced in the penal
institutions of any state signatory to the said compact or agreement
(with the exception of goods, Avares, and merchandise produced or
mined by any prison solel}' for the use of tax-supported institutions,
agencies, departments, or activities of any state or its political sub-
divisions) is manufactured, sold, and distributed only upon a fair
basis of competition with private industry.
C. When and so long as any penal institution, by subscribing to,
complying with, and making effective the Code or compact herein-
before referred to, or a binding agreement of any other nature, satis-
fies the Administrator that merchandise produced in whole or in
part in such institution or by the inmates thereof is being produced
and sold upon a fair competitive basis with similar merchandise not
so produced, the provisions of paragraph A hereof shall not apply to
any merchandise produced in such manner in the institution covered
by" such agreement, but otherwise paragraph A hereof shall apply
to such prison-made products.
D. Any member of this industry or subsidiary thereof making any
contracts with prisons for labor of prisoners or prison products shall
report the facts in writing to the Administrator and file with the
Administrator a copy of any such contract.
E. The Cotton Garment Code Authority shall, as soon as practica-
ble after the effective date, make such rules and regulations as may
tend to effectuate the policy of the National Industrial Recovery Act
and aid in the observance of the provisions of this Code with respect
to the sale and distribution of cotton garments or parts thereof made
in whole or in part by the inmates of privat-c or semi-public charita-
ble reformatory institutions other than prisons.
F. Nothing in this Article shall be construed to supersede or in-
terfere with the operation of the Act of Congress approved January
19, 1929, entitled ''An Act to Divest Goods, Wares, and Merchandise
Manufactured, Produced or Mined b}' Convicts or Prisoners of their
Interstate Character in Certain Cases ", or the provisions of any
State legislation enacted or made effective thereunder.
Akticle IX — AD::\rixisTRATioN
A. Further to effectuate the policy of tliis Act, a Cotton Garment
Code Authority is hereby set up to cooperate with the Administrator
in the administration of this Code and shall be constituted as
follows :
B. The International Associations of Garment ^Manufacturers,
with the collaboration of the industries affiliated, shall select as mem-
97
bers of the Cotton Gainient Code Authority one resprosentative
from such of the foHowing association^; or subdivisional groups as
it may satisfy the Administrator are truly representative and
compl}' with the provisions of Title I of the National Industrial
Keoover}' Act :
1. The National Association of Shirt Manufacturers.
2. The National Boys' Blouse and Shirt Manufacturers' Asso-
ciation.
8. The National Pajama Manufacturers' Council, Inc.
4. The Association of Collar Manufacturers.
5. The National "Work Clothes Manufacturers' Association.
G. The Union Made Garment Manufacturers' Association.
7. The Work Shirt INIanufacturers' National Association.
8. The National Slieep Lined and Leather Garment Association.
9. The Associated Pants Manufacturers of America.
10. The National Association of Cotton Dress Manufacturers.
11. The National Oiled Cotton Garment ^Linufacturers' Associa-
tion.
12. The National Association of Nur.'^es and Maids Aprons and
Uniforms.
13. Shirt Institute, Inc.
14. The National Association of ]Men\s Shirts and Bo3's' Blouse
Contractors.
15. Associated Manufacturers of Washable Service Apparel, Inc.
And such other associations as may from time to time, with the ap-
proval of the Administrator, be placed under the provisions of this
Code. Alternates may be appointed to represent members unable
to be present, but all such members and alternates of the Cotton
Garment Code Authority shall in each case be persons actually
engaged in the operation of a business in the respective industries.
The Administrator may appoint four members on nomination of
the labor Advisorv Board.
The iVdministrator, at his discretion, may appoint not more than
three additional members to represent the Administrator, and addi-
tional members to represent such groups or interests as he may deem
entitled to representation.
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, 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 necessarj- 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
])rovisions 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.
E. The Cotton Garment Code Authority shall have the power to
make investigations and to conduct hearings to ascertain whether
98
members of the industry are complying with the provisions of this
Code.
F. The Cotton Garment Code Authority shall select its chairman,
may employ such personnel as may be required for the effective dis-
charge of its functions, and may set up such administrative com-
mittees as may be necessary to aid divisional industries in the ad-
ministration and observance of this Code.
G. Members of the Industry shall be entitled to participate in and
share in 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 Admin-
istrator, on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration. Expendi-
tures authorized by the Code Authority shall not exceed an amount
reasonably necessary for the administration of this Code.
H. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose ; nor shall any mem-
bers of the Code Authority be liable in any manner to anyone for
any act of any other member, officer, agent, or employee of the Code
Authority exercising reasonable diligence in the conduct of his duties
hereunder, nor be liable to anj-one for any action or omission to act
under the Code, except for his own willful misfeasance or non-
feasance.
I. 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 veto any action taken by the Code Authority :
(a) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of tlie Code, in accord-
ance with the powers herein granted, and to submit the same to the
Administrator for his approval, together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the Act.
(b) Set up rules and regulations governing the making of returns
and reports by members of the industry as to
1. Production.
2. Machine hours.
3. Labor hours and pay-roll account.
(The aforesaid reports shall be made not less than every three
months, and at such other times as the Cotton Garment Code Au-
thority may determine ; provided that no member of the industry
shall have access to the confidential returns and data reported by tho
individual members, but all such data shall be correlated, tabulated,
or otherAvise presented in such manner as to avoid disclosure of indi-
vidual plant operations, except when its use is necessary to prove or
disprove a complaint or violation of this Code.)
(c) Prepare for, order, receive, collate, and analyze such addi-
tional reports as to any phase of the Cotton Garment Industry as
ma}^ be required from time to time by the Administrator for the pur-
pose of informing the President as to the observance of this Code or
99
the situation within the industry with respect to the operation
thereof.
(d) Set up such commissions, bureaus, or committees as may be
necessary :
1. To recommend to the Administrator the establishment of a sys-
tem of uniform cost accounting, which upon approval of the Admin-
istrator shall be binding vipon all members of the industry ;
2. To investigate and make recommendations to the Administrator
concerning control or balancing of production, distribution, and con-
sumption of products of the industry and the stabilization of the
industr}' with respect to 2)ioduction and employment ;
3. To report to the Administrator with respect to differentials
between the northern and southern sections of the industrj? ;
4. To investigate and report to the Administrator on the subject of
differentials as between urban and rural wage minimums or such
adjustments as ma}' be necessary in connection therewith ;
5. To aid in the adjustment of contracts made prior to August 1st
for future delivery where the costs of executing same are increased
through the operation of the National Industrial Recovery Act or the
provisions of this Code, it being interpreted as equitable and promo-
tive of the purposes of the Act that appropriate adjustments of such
contracts to retiect such increased costs be made. Any dispute arising
under this provision should be settled by amicable agreement, or if
that is not possible, should be referred to arbitration, and the Code
Authoritj^ shall offer all assistance possible ;
6. To investigate and report to the Administrator, with such rec-
ommendations as may be deemed necessary, looking to the control in
this industry of undue expansion of productive machinery capacity;
7. To investigate and make such recommendations to the Presi-
dent as may tend to effectuate the National Industrial Recover}- Act
and the provisions of this Code in respect to imports, or, upon in-
vestigation to make application to the President to exercise his
authority as to imports under Section 3 (e) of the National
Industrial Recovery Act;
8. To collaborate with members of the industry and with the
Administrator for the purpose of recommending from time to time
changes in or additions to this Code ;
9. To prepare and present to the President for his approval such
additional Codes of fair trade practice as may be necessary or
expedient in the conduct of the industry or any of the particular
industries subject to this Code;
10. To do and perform all other acts necessary to carry out any
of the provisions of this Code or the provisions of the National
Industrial Recovery Act or the requirements of the Administrator
in connection with this Code ;
11. To recommend to the Administrator through the Divisional
Code Authorities uniform systems of cost accounting which shall
be designed to effectuate fair competition in the divisional industries
subject to the aforesaid Code Authorities.
12. The Code Authority may recommend to the Administrator
provisions regarding the use of an N.R.A. label or insignia other
than that provided for in Article II and rules or regulations with
respect to the issuance and use of sucli insignia.
100
J. Except where otherwise provided lierein, all recommendations
made by the Cotton Garment Code Authority shall, upon approval
of the jPresident, become part of this Code and shall thereafter be
binding upon all those engaged in the industries subject to this Code.
K. All data, records, statistics, information, or other material
gathered by the Cotton Garment Code Authority shall at all times
be available to the Administrator. In addition to the information
required to be submitted to the Code Authority, there shall be fur-
nished to government agencies such statistical information as the
Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act.
L. Any power or authority delegated herein to the Code Authority
shall be subject to the right of the Administrator to review and
veto any action taken by the Code Authority ; any particular provi-
tion or implied delegation herein to the contrary notwithstanding.
Article X — Additional Codes
A. Such of the provisions of this Code as are not required to be
included therein by the -Xational Industrial Recover}'' 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 supplementar}' 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 Xational Industrial Recover}- Act consistent with the
l^rovisions thereof.
B. Codes of Fair Practices may be submitted with the approval of
subdivisional trade associations, and if approved by the President in
accordance with Title I of the Xational Industrial Recovery Act, such
Code or Codes shall be administered by such Trade Associations.
Article XI — Unfair Trade Practices
A. It shall be deemed an unfair trade practice and a violation of
this Code of Fair Competition for any member of the Cotton Gar-
ment Industry to hold himself out, or advertise or otherwise repre-
sent himself as a "" manufacturer " unless the cutting or sewing of
garments is included within the processes of his factoiy or plant;
provided, however, that nothing in this section shall he construed
to relieve anyone engaged in (a) cutting, (b) creasing, (c) trim-
ming, (d) sewing, (e) pressing, or (f) finishing, or all of them,
from the hour, wage, and production and other provisions of this
Code.
B. It shall be an unfair trade joractice for any member of the
industry to send out work to any " contractor " to be made into a
garment b}^ said contractor which shall include the cutting of the
material by said contractor and all work sent to a contractor by
a member of the industr}^ must be cut in the member's own factory
or plant. And it shall be an unfair trade practice for any con-
tractor to accept from any one any uncut material or textile for the
purpose of producing from same a garment. Provided, however,
101
that this proA'i^ion sliall becoino effective January 1. 1934, and that
thereafter only those contractors may cut who obtain exj^ress per-
mission from the Code Authorit}', Avith the concurrence of the
Administrator, upon duly shoAving their financial responsibility^ and
ability to comply Avith the Avage and hours proA'isions of this Code
and further that their continuajice of cutting operations A\'ill not
tend to defeat the })urposes of the Xational Industrial RecoA'ery
Act and this Code.
C. It shall be an unfair trade practice and a A^iolation of this Code
for auA' member of the Cotton Garment Industry to sell or oii'er for
sale merely cut but unseAvn and unfinished garments and any person
selling or offering for sale any merely cut but unseAvn and unfinished
products, shall be deemed to have violated this Code and be subject
to the penalties provided in the National Industrial IlecoA^erA' Act.
Article XII — (takjiext Idextification
The Cotton Garment Code Authority may Avith respect to any of
the products covered by this Code, if deemed necessary, put into
effect the folloAving provisions Avith respect to an X.E.A. label or
insignia, upon the approval of the Administrator:
A. Every such garment produced by any person subject to the
provisions of this Code shall bear an insignia, the purpose of Avhich
shall be to aid as a means of enforcing the purposes of the provisions
of this Code by tracing the garment to its origin. Garments bearing
a recognized trade-union insignia indicating the origin of said gar-
ment shall not be required to bear the additional insignia required
by this Section. EA'erj' manufacturer engaged in the industry shall
apph' to the Cotton Garment Code Authority for permission to use
insignia herein proAdded for, and each application, Avhen approved,
shall b? given a registered identification and eA^ery garment manu-
factured thereafter by the applicant shall bear said registered identi-
fication except as provided above. The Code AuthoritA^ shall charge
no more than the actual cost of production and distribution of the
dies, labels, or insignia, proA'ided for herein.
B. The Cotton Garment Code Authority, Avith the approval of the
Administrator, shall determine the insignia to be used under the
provisions of this article and shall make such rule,s and regulations
as to the use and location of the insignia on auA^ particular garment
as may be deemed practical or necessary. It is understood that the
location of the insignia on the garment is to be in an inconspicuous
position such a,s the skirt of a shirt. '' size label " on OA^eralls, etc.
C. The Cotton Garment Code Authority shall set up an Insignia
Registration Bureau for the purpose of carrying out the provisions
of this article.
Article XIII — ]\Io»ificatioxs
A. This Code and all the provisions thereof are expressh' made
subject to the right of the President, in accordance Avith the i)rovi-
sioas of Section 10 (b) of the National Industrial RecoA'ery 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 AN'ithout limitation, to the right of the President to cancel or
102
modif}' his approval of this Code or any conditions imposed by him
upon his approval thereof.
Article XIV — Moxopolies
A. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices or to eliminate or oppress
small enterprises or discriminate against them.
Article XV — Operation and Application
A. This Code .shall be in operation on and after the effective date
as to the whole Cotton Garment Industry as described herein, except
as an exemption from or a stay of the application of this provision
may be granted by the Administrator to a member applying for
same, in accordance with rules and regulations of the Administrator.
B. The provisions of this Code shall not apply to manufacturing
operations carried on outside the Continental portion of the United
States.
Article XVI — Price Increases
A. 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 Avages, 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
A. The effective date of this Code shall be the first Monday follow-
ing the first Wednesday after the date of approval by the President
of the United States.
Approved Code No. 118.
Registry No. 217-1-06.
o
Approved Code No. 119
CODE OF FAIR COMPETITION
FOR THE
NEWSPRINT INDUSTRY
As Approved on November 17, 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 of the Newsprint 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 tlie said Code of Fair Competition
complies in all respects with the pertinent provisions of Title I of
said Act and that the requirements of clauses (1) and (2) of subsec-
tion (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt 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, however, feeling
that the minimum wage for this industry should be not less than
forty (40) cents per hour, my order of approval is subject to the
following condition :
That within 90 days from the effective date of this Code the
Administrator hold such further hearing upon such notice as he,
in his discretion, shall fix for the purpose of determining the adequacy
of the minimum wages established in said Code, after which his
report and recommendation shall be submitted to me for further order
which order shall have the effect of a condition to my approval of
this Code.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
Administrator.
The White House,
November 17, 1933.
29225" 29&-95 34 (103)
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 Newsprint Industry in the United States, conducted in
Washington on September 6, 1933, in accordance with the provisions
of Title I of the National Industrial Recovery Act.
working hours
This Code provides for a standard 40-hour week for all but a
small portion of the employees in the Industry. In order to provide
flexibility necessary to meet unusual conditions, such as variation in
water supply, etc., provision is made for a 40-hour week averaged
over a 13-week period with a limitation on day workers of 48 hours
in a single week with time and one -third for hours worked in excess
of 8 in a single day.
No such provision is made for tour workers who desire to be free
to exchange shifts. Provision is also made for additional hours for
them to meet situations where the work requires the help of men
from an off-duty shift to change wires and wash and clean the ma-
chines after a run. Such work is too small in amount and too irregu-
lar to justify employment of an additional shift.
Employees not engaged directly in production, of whom there
are only a few in each plant, are on a 42-hour basis averaged over a
4- week period. Watchmen may work 56 hours per week, and office
employees 40 hours per week averaged over a year, but not more
than an average of 48 hours per week in any quarter. In emergency
cases, restrictions are removed for employees engaged in repair and
maintenance work. Regular reports of hours worked are required.
WAGES
The basic minimum wage rate for mechanical workers is 38 cents
per hour. Provision is also made for a 5 cent lower hourly wage for
women, but it is expressly provided that men and women doing the
same work shall receive the same pay, and that the Code Authority
shall file with the Administrator a description of all occupations in
which women are employed.
ECONOMIC EFFECT OF THE CODE
The Newsprint Industry is in a very serious condition. Consump-
tion has fallen from 3,800,000 tons in 1929 to 2,800,000 tons in 1932.
The capacity of the mills in the United States is about 1,800,000 tons.
In 1929 they produced 1,400,000 tons and in 1932 1,008,000 tons.
The price has fallen from $65 per ton delivered m 1929 to $40 in
1933.
(104)
105
It is doubtful whether even the most efficient mills can produce
paper at this price in either Canada or the United States. In fact,
five out of eight of the largest producers in the United States are
in receivership, as well as practically all of the Canadian mills,
which are not supported b}^ their affiliates.
As newsprint is imported duty free the United States and Cana-
dian branches of the Industry are practically one from a competi-
tive standpoint, and consequently the manufacturers in the United
States can obtain no reimbursement through increased prices for any
additional costs which may be imposed upon them by this Code.
The condition of the Newsprint Industry has a depressing and
disturbing effect on the general paper industry, both because news-
print mills can and do shift over to other types of paper, and because
the price of newsprint has a pronounced influence on the price of
other paper.
Newsprint contracts are generally made for the calendar year and
offerings for 1934 are now being made. Some offers as low as $30
to $35 per ton, delivered, have been made by Canadian mills. The
paper Industry as a whole is in something of a panic for fear that
a lower price for newsprint will be established and that this will
result in the inability of the Industry to meet its increased costs
under the National Industrial Recovery Act.
In spite of this situation, the Newsprint Industry has shortened its
working hours from 48 to 40 per week and increased its wage rates
substantially by this Code. Employment will be increased only
about 10% l3y this change because the average actual work week has
been only slightly over 40 hours. The real problem of the Newsprint
Industry is not to increase employment, but to maintain employment
at its present manufacture. It is estimated, however, that the total
increase in pay rolls in the Industrv as a result of the Code will be
about 15% to 20%.
Under the circumstances, I am of the opinion that the Industry has
offered the maximum of which it is capable and that the Code is
satisfactory in all other respects.
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
(6) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Paper and Pulp Industry; and that
(<?) The Code as recommended is not designed to promote mono-
polies 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 submitted.
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
NEWSPRINT INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act the following is hereby established as the Code of Fair
Competition for the above industry, and shall be binding on every
member thereof.
Article I — DEriNmoNS
1. The following words are used in this Code with the meanings
herein set forth :
" Newsprint " — The word " newsprint " is used in this Code with
the same meaning with which the words " standard newsprint paper "
are used in paragraph 1672 of the Tariff Act of 1922, and in para-
graph 1772 of the Tariff Act of 1930.
"Industry "—The manufacture in the United States from wood
pulp and/or other stock of newsprint and all other papers, except
rotogravure paper, when such other papers are manufactured and
sold for regular use in the making of daily newspapers.
" Member *' — A natural person, partnership, association, corpora-
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in
such industry.
"Act "—Title I of the National Industrial Recovery Act.
"Administrator " — The National Recovery Administrator.
" The Association " — The Association of Newsprint Manufacturers
of the United States.
Article II — Organization
1. The Advisory Committee of the Association is hereby desig-
nated as the agency for administering this Code, and is hereby con-
stituted and hereinafter referred to as the " Code Authority." The
Administrator may designate three (3) persons as additional mem-
bers of such Code Authority who shall have no vote, but in all other
respects shall be members thereof.
2. The expenses of administering this Code shall be borne pro rata
by all members of the Industry who accept the benefits of the Code
Authority or otherwise assent to this Code, in accordance with a
formula to be adopted by the Code Authority. The Association shall
be responsible for the payment of such expenses.
Article III — Hours or Labor
1. No paper machine shall be operated in excess of 144 hours in
any week.
2. Employees in the industry shall not be required or permitted
to work hours in excess of the limits prescribed in the following
schedule :
(106)
107
Schedule of working hours
{a) Watchmen : 8 hours in any one day and 56 hours in any one
week.
(&) Chauffeurs, truckmen, switching crews, engineers, firemen and
electric and hydroelectric operators and filter-plant emploj^ees: 168
hours in any period of four consecutive weeks, but no more than 10
hours in any one day and 48 hours in any one week.
{c) Tour-workers in continuous process operations: 8 hours in
any one day and an average of 40 hours per week in any period of 13
consecutive weeks ; provided, however, that additional hours may be
worked —
(1) To avoid a shut-down due to the temporary absence of a relief
worker; (2) In changing wires and machine clothing; and (3) In
clean-ups, Avash-ups, and ordinary repairs and adjustments in cases
where a machine is shut-down for a period of not less than eight
consecutive hours.
{d) All other laborers, mechanical w^orkers, or artisans employed
in any plant, mill, or factory or on work connected with the opera-
tion of any plant, mill, or factory : An average of not more than 40
hours per week in any period of 13 consecutive weeks, but not more
than 48 hours in any one week, provided, however, that time worked
in excess of eight hours in an}^ one day shall be paid for as not loss
than time and one-third.
{e) Executives and their personal secretaries and other employees
regularly engaged in a supervisory capacity receiving $35.00 or more
per week and outside salesmen : No limitation.
(/) All other employees : An average of 40 hours per week in any
calendar year and an average of not to exceed 48 hours per week
in any period of 13 consecutive weeks. Provided, however, that no
limitation on hours of w^ork contained in said schedule shall apply
to employees of any class when engaged in emergency repair or
emergency maintenance work involving break-downs or protection of
life or property.
3. At such intervals as the Code Authority shall prescribe, every
member shall report to the Code Authority (a) the number of man-
hours worked under subdivisions c (1) and c (2) of said schedule
and the ratio which said man-hours bear to the total number of
man-hours of labor under subdivision c; and (b) shall furnish the
Code Authority such information as it may require in order to
enable it to determine whether the limitations contained in said
schedule have been exceeded.
4. No employee shall be permitted to w^ork for more than one
member of the Industry an aggregate number of hours in excess of
the number prescribed in said schedule.
Article IV — Wages
1. The minimum rate of wage of any laborer, mechanical worker,
or artisan emplo^'ed in any plant, mill, or factory or on work con-
nected with the operation of any such plant, mill, or factory shall
be as follows :
Male labor, 38 cents per hour.
Female labor, 33 cents per hour.
108
Provided, however, that where a State law provides a higher mini-
mum wage than is provided in this Code, no person employed within
such State shall be paid a wage below that required by such State
law.
2. Piece workers shall be paid at rates which will yield a worker
for an hour's work not less than the minimum rates prescribed.
3. The minimum rates of wages for all other employees except
commission salesmen shall be as follows: Not less than $15 per
week in any city of over 500,000 population, nor less than $14.50
per week in any city between 250,000 and 500,000 population, nor
less than $14 per week in any city between 2,500 and 250,000 popu-
lation, nor less than $12 per week in towns of less than 2,500
population.
4. The minimum wages hereby prescribed shall not in any way
be considered as a discrimination by reason of sex and where, in any
case, women do substantially the same work or perform substan-
tially the same duties under the same conditions as men, they shall
receive the same rate of wages as men receive for doing such work
or performing such duties. Tlie Code Authority shall prepare and
file with the Administrator within ninety days after the effective
date of this Code, a description of all occupations in the industry
in which women are employed.
5. The wage rat«s of all employees receiving more than the mini-
mum rates herein prescribed shall be reviewed and such adjustments,
if any, made therein as are equitable in the light of all the circum-
stances. Within ninety (90) days after the effective date hereof, the
Code Authority shall report to the Administrator the action taken
by all members of the industry under this section.
6. A person whose earning capacity is limited because of physical
or mental deficiency, age, or other infirmity, may be employed on
light work at not less than eighty (80) percent of the minimum wage
prescribed in Section 1 hereof, if the State Authority designated
by the United States Department of Labor shall have issued a cer-
tificate authorizing the employment of such person on such basis,
provided, however, that the total number of such employees in any
one plant shall not exceed three (3) percent of the total employees
in such plant. So much of this Section as requires the issuance
of such a certificate shall not take effect until sixty (60) days after
the effective date of this Code.
Abticle V — General Labor Provisions
1. No person under sixteen (16) years of age shall be employed in
the industry nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator within sixty
(60) days after the effective date of this Code a list of such occupa-
tions. 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 employ-
ment or age certificates or permits showing that the employee is of the
required age.
2. Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
109
free from the interference, restraint, or coercion of employers of
labor, or their agents in the designation of such representatives or in
self -organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection. No employee
and no one seeking employment shall be required as a condition of
employment to join any company union or to refrain from joining,
organizing, or assisting a labor organization of his own choosing.
Employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment approved or
prescribed by the President.
3. Labor agreements now in force between members and their em-
ployees shall be affected only by such provisions of this Code as may
prescribe higher wages and shorter hours than are provided for in
such agreements.
4. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
5. All employees shall post full copies of this Code in conspicuous
places accessible to employees.
6. Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six (6) months after the
effective date of this Code.
7. The Code Authority shall make a study of conditions in the
Industry to determine the feasibility of the adoption of a shorter
working day and shall, within three (3) months after the effective
date of this Code, make a report of its findings to the Administrator.
The Code Authority shall also submit to the Administrator within
six months after the effective date of this Code a plan for the sta-
bilization and regularization of employment. The Code Authority
may also submit recommendations to the Administrator for the es-
tablishment of rules relative to work on Sundays and holidays, to a
weekly day of rest, and to overtime work generally and rates of
wages therefor. Such recommendations, when approved by the Ad-
ministrator, shall have the same force and effect as other provisions
of this Code.
Article VI — Accounting
1. The Code Authority shall, as soon as practicable, propose a
standard method of accounting and costing for the industry and sub-
mit the same to the Administrator. When it shall have been ap-
proved by the Administrator, every member shall use an accounting
and costing system which conforms to the principles of, and is at
least as detailed and complete as, such standard method.
Article VII — Reports; Statistics
1. Each member shall prepare and file with the Code Authority,
at such time and in such manner as it may prescribe, statistics oi
plant capacity, production, sales in units and dollars, stocks on
hand, number of employees, wage rates, employee earnings, hours of
work, and such other data or information as the Code Authority or
the Administrator may from time to time require, and in addition,
shall furnish government agencies such statistical information as the
110
Administrator may deem necessary for the purposes recited in Sec-
tion 3 (a) of the Act.
2. Except as otherwise provided in the Act, all statistics, data, and
information filed with or required by the Code Authority in accord-
ance with the provisions of Section 1 hereof shall be confidential
and the statistics, data, and information of one member shall not be
revealed to another member. No such data or information shall be
published except in combination with other similar data and in such
a manner as to avoid the disclosure of confidential information.
3. The Code Authority shall make and file with the Administrator
such reports as the Administrator may from time to time require.
Article VIII — Violations
1. The failure on the part of any member of this industry to com-
ply with the provisions of this Code or to perform any obligation
imposed on him thereby shall constitute a violation of the Code.
2. The Code Authority shall investigate alleged violations of this
Code and make reports thereon to the Administrator.
Article IX — General Provisions
1. This Code may, with the approval of the President, be amended
except as to provisions required to be included therein by the Act.
2. If any member of the industry is engaged in any other industry,
the provisions of this Code shall apply to and affect only that part
of his business which is included in the industry.
3. The Code Authority may confer with the members of the in-
dustry and the consumers of its product in respect of the stabiliza-
tion of the industry and the elimination of unfair practices and de-
structive competitive prices, and may formulate and submit to the
Administrator its recommendations to that end. Such recommenda-
tions when approved by the Administrator shall have the same force
and effect as any other provisions of this Code.
4. The Code Authority may secure current information concerning
the competition in domestic markets of imported newsprint, and if it
shall find that such newsprint is being imported into the United
States in substantial quantities or increasing ratio to domestic pro-
duction and on such terms or under such conditions as to render in-
effective or seriously endanger the maintenance of this Code, it may
complain to the President pursuant to the provisions of Section 3 (e)
of the National Industrial Recovery Act and petition for suitable
restrictions on the importation of such newsprint.
5. In order to maintain at all times an adequate domestic supply
of raw material for the Industry, it is the declared purpose of the
Industry to conserve forest resources and bring about the sus-
tained production thereof. The Code Authority shall cooperate
with the Secretary of Agriculture and other National and State
Officials and Agencies and with the Code Authorities of other
Industries in planning such practical measures as may be necessary
to accomplish such declared purpose, and shall, upon the request
of the Secretary of Agriculture, join with the Lumber and Timber
Ill
Products Industries iii any conference which may be held pursuant
to the provisions of Article X of the Code of Fair Competition
of the Lumber and Timber Products Industries, approved by the
President on August 19, 1933,
6. The trade standards and customs covered by the appendix
hereto attached are made a part hereof, and any deviation from
them is a violation of the Code.
7. This Code and all the provisons thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions 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 said Act, and specifically to the
right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
8. This Code shall become effective on the second Monday after
its approval by the President.
Approved Code No. 119.
Registry No. 405/01.
APPENDIX
Trade Customs and Trade Practices
1. Newsprint, other than tinted news, is white, cream white or blue
white, and mild variations thereof.
2. Every manufacturer shall deliver as newsprint paper, as nearly
as practicable, paper of an average basis weight of 32 lbs. Five
(5) percent over or under specified base of weight shall be con-
sidered good delivery for individual rolls. Orders for heavier
weight bases (over 24 x 36 — 32 lbs. to 500 sheets) shall be furnished
at no price concession. Newsprint shall not be sold on a production
basis.
3. No newsprint shall be designated as " Culled " and sold at a
reduced price.
4. The billing weight of roll newsprint shall be the gross weight,
including paper and wrappers, less only the weight of cores it
returnable cores are used. Sheet newsprint shall be billed at the
ordered weight unless there is a shortage in excess of 2i/2 percent,
in which event paper shall be billed at the actual scale weight.
5. Terms — net cash United States Funds, 30 days from date of
shipment; or from date of withdrawal from warehouse in the case
of water shipments; or 15th of month for shipments made during
preceding month or any other mutually agreeable arrangement
which contemplates an approximate thirty day cash settlement. 6%
interest shall be paid on all amounts remaining unpaid on due dates.
Time of payment may be extended beyond thirty days, provided
interest at the rate of 6% per annum is charged after thirty days
from date of shipment, or from date of withdrawal from warehouse
in the case of water shipments.
6. Keturnable cores, either paper or iron, shall be charged to the
purchaser at 2 cents per running inch and shall be returned
promptly, freight prepaid, to the manufacturer. Cores shall be
credited to the purchaser at the invoiced price when a prepaid bill
of lading showing the number and sizes of cores returned to mill of
manufacturer is received by the manufacturer. Nonreturnable cores
shall be included in invoice price of paper and shall not be
returnable.
7. No allowance shall be made for waste, damage, or paper left
on cores. In case of claim of any nature applying on any shipment,
the manufacturer shall be notified immediately, but no claim shall
be allowed for consequential damage.
8. Miscellaneous Differentials : For newsprint in sheets the differ-
entials shall not be less than those stated in the following schedule :
White Colored
For sheets 150 sq. in., and larger per ton__ 5.00 10.00
For sheets 72 sq. in. to 149 sq. in do 10. 00 15. 00
For sheets 36 sq. in. to 71 sq. in do 15.00 20.00
(112)
113
These differentials shall be with relation to the price of white
newsprint in rolls.
Two dollars per ton shall be charged for skid loads if more than
3,000 lbs.; $3.00 per ton on quantities from 3,000 lbs. to 2,000 lbs.;
and $5.00 per ton for quantities of 2,000 lbs. and under.
Press trimming ghall be charged for, over the sheet price, as
follows :
$1.00 per ton for one side.
$2.00 joer ton for two sides,
$3.00 per ton for either three or four sides.
If sheet news is packed in skeleton frames, this charge shall be
$5.00 per ton over the sheet price.
9. The foregoing trade customs and practices with re,spect to news-
print shall also apply to all other products of the industry.
o
I
Approved Code No. 120
CODE OF FAIR COMPETITION
FOR THE
PAPER AND PULP INDUSTRY
As Approved on November 17, 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 of the Paper and Pulp 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 other-
wise, do adopt and approve the rej^ort, recommendations and findings
of the Administrator and do order that the said code of fair com-
petition be and it is hereby approved; however, feeling that the
minimum wage for this industry should be not less than forty (-10)
cents per hour, ni}^ order of approval is subject to the following
condition :
That within 90 days from the effective date of this code the Ad-
ministrator hold such further hearing upon such notice as he, in his
discretion, shall fix for the purpose of determining the adequacy of
the minimum wages established in said code, after which his report
and recommendation shall be submitted to me for further order
which order shall have the effect of a condition to my approval of
this Code.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. JoHxsoisr,
Administrator.
The White House,
November 17, 1033.
29229° 296-101 34 (115)
October 19, 1933.
The President,
T?ie White Hotise.
Sir : This is a report of the hearing on the General Code of Fair
Competition for the Paper and Pulp Industry in the United States,
and Subordinate Codes covering divisions of such Industry, con-
ducted in Washington on September 14, 1933, in accordance with the
provisions of Title I of the National Industrial Recovery Act.
working hours
This Code provides for a standard 40-hour week for all but a small
portion of the employees in the Industi-y. In order to provide the
flexibility necessary to meet unusual conditions, such as variation
in water supply and peak demands, provision is made for a 40-hour
week averaged over a 13-week period, with a limitation on day
workers of 48 hours in a single week with time and one-third for
hours worked in excess of 8 in a single day.
No overtime provision is made for tour workers on continuous-
process operations who desire to be free to exchange shifts. Provi-
sion is also made for additional hours for them to meet situations
where the work requires the help of men from an off-duty shift to
change wires and wash and clean the machines after a run. Such
work is too small in amount and too irregidar to justify employment
of an additional shift.
Employees not engaged directly in production, of whom there are
only a few in each plant, are on a 42-hour basis averaged over a
4- week period. Watchmen may work 56 hours per week, and office
employees 40 hours per week averaged over a year, but not more
than an average of 48 hours per week in any quarter. In emergency
cases restrictions are removed for employees engaged in repair and
maintenance work. Regular reports of hours worked are required.
WAGES
For wage purposes the country is divided into three zones:
Northern, Central, and Southern. The principal paper-producing
States in the Southern zone are Florida, Alabama, Mississippi, Lou-
isiana, Arkansas, and Texas ; and in the Central zone, Virginia and
West Virginia, Tennessee, and North Carolina. All the remaining
important paper-producing States are in the Northern zone. The
wage differentials between the zones, prescribed by the Code, are
much less than those now prevailing and are necessary to avoid too
great a change in established competitive conditions.
The basic minimum wage rates prescribed for the three zones are
as follows:
Northern, 38 cents per hour
Central, 35 cents per hour
Southern, 30 cents per hour
(116)
117
Provision is also made for a 5-cent lower wage for women in the
Northern and Central zones, but it is expressly provided that mea
and women doing the same work shall receive the same pay, and
that the Code Authority shall file with the Administrator a descrip-
tion of all occupations in which women are emplo3'ed. An exception
is made of work which on July 15, 1929, paid less than the pre-
scribed rates. In such cases the 1929 rate, or ninety percent of the
base rate, whichever is higher, is prescribed. A report to the Admin-
istrator on the effect of this exception is required.
The minimum wages of office workers range from $12.00 to $15.00
per week, as in the President's Reemployment Agreement.
Conditions vary greatly in different parts of the same zone and
between different divisions of the Industry as to the ability of the
mills to increase wages. The wages prescribed are a fair compro-
mise. They are in all cases a substantial increase over rates pre-
vailing in June of this year. They are also an increase over the
average wage rates prevailing on October 1st, but are slightly less
than the rates now being paid by some of the better-situated mills.
No exceptions are made for learners or for office boys or girls.
State certificates of disability are required in the case of partly
disabled employees paid lower rates.
ECONOMIO EFFECT OF THE CODE
The normal number of employees in the Industry is from 123,000
to 125,000. The number in 1929 was 128,000. Owing to technological
improvements, the number which would be required today to pro-
duce the 1929 output would be about 120,000. The effect of the
Code, however, will be to restore employment to 128,000, the 1929
figure, although the present rate of production is far below the
1929 rate.
The total pay roll of the Industry in May, 1933, was at a rate of
approximately 100 million dollars per year. The American Paper
and Pulp Association estimates that the effect of the Code will be
to increase the rate to approximately 170 million dollars per year.
The estimate is based on the production of June and July, 1933,
and on such data as is available concerning action already taken
by many large employers to increase wage rates and reduce working
hours under the President's Reemployment Agreement.
The Industry represents an investment of over one and one-half
billion dollars. The ratio of fixed investment to the value of annual
production is abnormally high. The value of the 1929 production
was about equal to the investment in manufacturing facilities (ex-
clusive of material resources). The value of the 1932 production
was less than one-half of the investment. Due to these conditions,
the overhead burden, always high, has increased to an abnormal
figure. Prices have been depressed to a point which has not returned
cost. A group of companies representing 35% of the production
capacity of the Industry shows a loss of 19% of their total working
capital in the year 1932. The increase costs which the Industry will
have assumed through the adoption of this Code are as great as it
can reasonably be expected to bear.
118
OTHER CODE. PROVISIONS
The Code contains provisions requiring the Code Authority to
make a survey of the Industry for the purpose of obtaining data
as to the feasibility of adopting a shorter man-hour week and to
submit a report of its findings to the Administrator, together with
a plan for the stabilization of employment.
The General Code, together with the Subordinate Codes, provides
not only a divisional set-up for the Industry, but also complete
machinery for the administration of the General Code and the Divi-
sional Codes in each Division. A General Code Authority, to con-
sist of the members of the Executive Committee of the American
Paper and Pulp Association, is the agency for the administration of
the General Code, and in each Division there is created a subordinate
Code Authority to be selected by the members of such Division for
the administration of the Divisional Code.
Provision is made for establishing a uniform accounting and
costing system for the entire Industry and for the open publication
of prices and adherence thereto.
This Code covers the manufacture of all paper except newsprint.
There is a continual controversy regarding the precise meaning of
the words " standard newsprint " as used in the Tariff Act, and
there has been some apprehension on the part of members of the
Industry and others that the definitions in this Code and the News-
print Code might have some bearing on this controversy. It is
pointed out that the sole purpose of these definitions is to establish
a definite boundary line between the jurisdictional areas of the two
Codes and, that tney have no bearing whatsoever on the question
of dutiability of imported paper.
I am satisfied that this Code is a long step toward the goal set up
by the National Industrial Recovery 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
Paper and Pulp 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 approved.
Respectfully submitted.
Hugh S. Johnson,
A dministrator.
CODE OF FAIR COMPETITION
FOR THE
PAPER AND PULP INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act the following is hereby established as a Code of Fair
Competition for the Paper and Pulp Industry, and shall be binding
on every member thereof.
Article I — Definitions
1. Where used in this Code and in all codes subordinate hereto, the
following definitions shall apply :
" Industry " — The manufacture in the United States from pulp-
wood, wood pulp, or other stock or pulp, of all paper (except such
paper now in regular use in the making of daily newspapers as is
specifically mentioned and described in Schedule "A" hereof), such
paperboard as is listed in Schedule " B " attached, and pulp ; pro-
vided, however, that if and when the provisions of this Code shall
be extended to cover any products of converters of paper and paper-
board, then the word " Industry " shall include the manufacture of
same.
'• Member " — A natural person, partnership, association, corpora-
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in such
industry.
" Division " — A division or section of the industry recognized as
such by this Code.
"Act" — Title I of the National Industrial Recovery Act.
"Administration " — The National Industrial Recovery Adminis-
tration.
"Administrator " — The National Industrial Recovei*y Adminis-
trator.
Article II — ^Organization
1. The Executive Committee of the American Paj^er and Pulp
Association is hereby designated as the Agency for administering
the provisions of this Code and is hereby named and is hereinafter
referred to as " The Paper Industry Authority." The Administrator
may designate three persons as additional advisory members thereof*
the member or members so designated shall have no vote, but in all
other respects shall be members of the said Paper IndustiT' Au-
thority.
2. The Industry is hereby divided into divisions as set forth in
Schedule C hereto attached. Any question as to the division into
which any particular grade, class, or kind of paper, paperboard, or
pulp or any product of conversion of any of them may fall shall be
determined by the Paper Industry Authority.
(119)
120
In the event that the jurisdiction of the Code shall be extended to
cover the manufacture of products which do not fall within any such
division, the Paper Industry Authority may create new divisions to
include such products, and the members of such divisions may then
adopt and submit divisional codes as provided in Article III hereof.
The Paper Industry Authority may create new divisions by the sub-
division of any of such divisions or by the consolidation of any two
or more of such divisions, provided, however, that no such subdivi-
sion or consolidation shall be made without the consent of the
divisional association of each division affected thereby.
3. In each division there may be one divisional association to
which evei-y member of the industry engaged in the manufacture of
any product included in such division shall be eligible for member-
ship. Each such divisional association shall be eligible for member-
ship in the American Paper and Pulp Association.
4. The expenses of administering this Code shall be apportioned
among the various divisions in accordance with a formula to be
adopted by the Paper Industry Authority. The expenses of admin-
istering the subordinate Code of each Division, together with the
proportion of the expense of administering this Code, allocated to
such Division, shall be borne pro rata in accordance with a formula
to be adopted by the Executive Authority of such Division by all
members of such Division who accept the benefits of the Paper
Industry Authority and/or the Executive Authority of such division
or otherwise assent to this Code. Divisional Associations shall be
responsible for the payment of all Code-administration expense.
Article III — Divisional Codes
1. Each such divisional association may adopt a divisional code
and may either submit the same as a supplement to tliis Code for the
approval of the President of the United States or may submit the
same subsequently through the Paper Industry Authority to the
President for his approval. Such divisional codes, when so ap-
proved, shall have the same force and effect as to the divisions of
the industry affected thereby as this Code.
2. Such divisional codes shall be subordinate to this Code and shall
specifically recognize this Code as applicable to all members of the
industry engaged in manufacturing products falling within the
division for which such divisional code is submitted.
3. Pending action by the Paper Industry Authority each division
shall include such grades, classes, and kinds of paper, paperboard, or
pulp as are generally recognized by custom as falling within the
classification indicated by the name of such division.
4. Each such divisional code shall designate an agency for the
purpose of administering such divisional code, which shall be denom-
inated " The Executive Authority '' of such division.
5. Such divisional codes may contain such provisions relating to
said division as may be appropriate for inclusion in a Code of Fair
Competition under the Act, provided that no such code shall contain
any provision contraiy to or inconsistent with the provisions of
this Code.
121
Article IV — Houks or Labor
1. Employees in the industry shall not be required or permitted
to work hours in excess of the limits prescribed in the following
schedule :
SCHEDULE OF WORKING HOURS
(a) Watchmen: Eight (8) hours in any one day and fifty-six (56)
hours in any one week.
(b) Chauffeurs, truckmen, switching crews, engineers, firemen,
and electric and hydroelectric operators, and filter-plant employees :
One hundred sixty-eight (168) hours in any period of four con-
secutive weeks, but no more than ten (10) hours in any one day
and forty-eight (48) hours in any one week.
(c) Tour workers in continuous process operations: Eight (8)
hours in any one day and an average of forty (40) hours per week
in any period of thirteen (13) consecutive weeks; provided, how-
ever, that additional hours may be worked —
(1) To avoid a shut-down due to the temporary absence of a relief
worker ;
(2) In changing wires and machine clothing; and
(3) In clean-ups, wash-ups, and ordinary repairs and adjustments
in cases where a machine is shut down for a period of not less than
eight consecutive hours.
(d) All other laborers, mechanical workers, or artisans employed
in any plant, mill, or factory or on work connected with the opera-
tion of any such plant, mill, or factory: An average of not more
than forty (40) hours per week in any period of thirteen (13) con-
secutive weeks, but not more than forty-eight (48) hours in any
one week; provided, however, that time worked in excess of eight
(8) hours in any one day shall be paid for at not less than time and
one-third.
(e) Executives and their personal secretaries and other employees
regularly engaged in a supervisory capacity, receiving thirty-five
($35) dollars or more per week, and outside salesmen : No limitations.
(f) All other employees: An average of forty (40) hours per
week in any calendar year and an average of not to exceed forty-
eight (48) hours per week in any period of thirteen (13) consecu-
tive weeks.
Provided, however, that no limitation on hours of w^ork contained
in said schedule shall apply to employees of any class when engaged
in emergency repairs or emergency maintenance work involving
breakdowns or protection of life and property.
2. At such intervals as the Paper Industiy Authority shall pre-
scribe, every member shall report to the Paper Industry A.uthority—
(a) The number of man-hours worked under subdivisions c (1),
c (2), and c (3) of said schedule and the ratio which said man-hours
bear to the total number of man-hours of labor under subdivisions c ;
and
(b) Shall furnish the Paper Industry Authority such information
as it may require in order to enable it to determine whether the limi-
tations contained in said schedule have been exceeded.
29229° 290-101 34 -2
122
3. No employee shall be permitted to work for more than one mem-
ber of the Industry an aggregate number of hours in excess of the
number prescribed in said schedule.
Article V — Wages
1. The minimum rate of wage of any laborer, mechanical worker,
or artisan employed in any plant, mill, or factory, or on work con-
nected with the operation of any such plant, mill, or factory shall be
as follows:
(a) Northern Zone, which shall consist of all the territory of the
United States except the States named in subdivisions (b) and (c).
Male: Thirty-eight (38) cents per hour.
Female: Thirty-three (33) cents per hour.
(b) Central Zone, which shall consist of the States of Delaware,
Maryland, Virginia, West Virginia, Kentucky, Tennessee, and North
Carolina, and the District of Columbia.
Male: Thirty-five (35) cents per hour.
Female: Thirty (30) cents per hour.
(c) Southern Zone, which shall consist of the States of South
Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkan-
sas, and Texas.
Thirty (30) cents per hour.
Provided, however, that in case the rate per hour for any class of
labor was, on July 15, 1929, less than the mmimum rate above speci-
fied for the same class of labor, then the minimum rate for such class
of labor shall be the rate paid on July 15, 1929, but in no event less
than ninety percent of the rate above specified.
2. The Paper Industry Authority shall obtain statistical data con-
cerning the eft'ect of the above proviso on wage rates in the Industry,
and shall within ninety (90) da5\s after the effective date of this Code
make a report thereon to the Administrator.
3. Where a State law provides a higher minimum wage than is
provided in this Code, no person employed within such State shall
be paid a wage below that required by such State law.
4. Pieceworkers shall be paid at rates which will jdeld a worker
for an hour's work not less than the minimum rate prescribed.
5. The minimum rates of wages for all other employees except
commission salesmen shall be as follows :
Not less than fifteen dollars ($15) per week in any city of over
500,000 population, nor less than fourteen dollars and fifty cents
($14.50) per week in any city between 250,000 and 500,000 popula-
tion, nor less than fourteen dollars ($14) per week in any city
between 2,500 and 250,000 population, nor less than twelve clollars
($12) per week in towns of less than 2,500 population.
6. The minimum wages hereby prescribed shall not in any way be
considered as a discrimination by reason of sex, and where in any
case women do substantially the same work or perform substantially
the same duties under the same conditions as men they shall receive
the same rate of wages as men receive for doing such work or per-
forming such duties. The Paper Industry Authority shall prepare
and file with the Administrator, ninety (90) daj^s after the effective
123
date of this Code, a description of all occupations in the industry
in which women are employed.
7. The wage rates of all employees receiving more than the mini-
mum rates herein prescribed shall be reviewed and such adjustments,
if any, made therein as are equitable in the light of all the circum-
stances, and within ninety (90) days after the effective date hereof
the Paper Industry Authority shall report to the Administrator
the action taken by all members of the industry under this Section.
8. A person whose earning capacity is limited because of physical
or mental defect, age, or other infirmity may be employed on light
work at not less than eighty percent (80%) of the minimum wage
prescribed in Section 1 hereof if the State Authority designated by
the United States Department of Labor shall have issued a cer-
tificate authorizing the employment of such person on such basis,
provided, however, that the total number of such employees in any
one plant shall not exceed three (3) percent of the total employees
in such plant. So much of this Section as requires the issuance of
such a certificate shall not take effect until sixty (60) days after the
effective date of this Code.
Article VI — Gexeilvl Labor Provisions
1. 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 detrimental to
health. The Paper Industry Authority shall submit to the Ad-
ministrator within sixty (60) days after the effective date of this
Code 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 certificate or permit duly issued oy the authority in such State
empowered to issue employment or age certificates or permits show-
ing that the employee is of the required age.
2. 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. 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. Employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
3. Labor agi-eements now in force between members and their
emj)loyees shall be affected only by such provisions of this Code as
may prescribe higher wages and shorter hours than are provided
for in such agreements.
4. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purpose of the Act.
5. All employers shall post full copies of this Code in conspicuous
places accessible to employees.
124
6. Standards for safety and health shall be submitted by the Paper
Industry Authority to the Administrator within six (6) months after
the effective date of this Code.
Article VII — Accounting — Selling
1. The Paper Industry Authority shall, as soon as practicable,
propose a standard method of accounting and costing for the indus-
try and submit the same to the Administrator. When it shall have
been approved by the Administrator every member shall use an
accounting and costing system which conforms to the principles of,
and is at least as detailed and complete as, such standard method.
2. Each member shall, on or before thirty (30) days after the
effective date of this Code, file with the Executive Authority of his
division, or divisions, complete schedules in such form as such
Executive Authority shall prescribe of prices and terms and condi-
tions of sale for domestic consumption (including all differentials,
discounts, trade allowances, and special charges) of all products
falling within the scope of the division offered for sale by such
member, and shall so file all subsequent changes therein or revisions
thereof at least twenty-four (24) hours prior to the effective date of
any such changes or revisions. When any member shall file any such
schedule of prices, or any revision thereof, any other member may
also file a revision of its own schedules, and if such other member
shall so desire and state therein the same shall be effective as of the
same date as the schedule or revision thereof first in this sentence
referred to. Each such schedule of prices shall conform to all trade
practices and other provisions established in and by this Code or
any pertinent subordinate code or any amendment or supplement to
this Code or to such subordinate code. The Executive Authority
shall send to the Paper Industry Authority and to each member of
the division and to any others concerned requesting a copy thereof, a
copy of such schedules and of all changes and revisions thereof so
filed.
The Executive Authority of any division may, from time to time,
with the approval of the Paper Industry Authority, change in
respect to all or any of the products of such division the period of
time which shall elapse between the date of filing and the effective
date of any such schedule ; provided, however, that such period shall
not be less than twenty-four (24) hours or more than five (5) days;
and provided further, that pendmg the holding of a meeting of the
Paper Industry Authority the chairman thereof may grant an
interim approval of such action. The Executive Authority shall
give immediate notice of such change to the members of the division.
The subordinate code of any division may contain a provision lim-
iting the time within which future deliveries may be contracted for
at the prices scheduled at the time of the contract j and the Execu-
tive Authority of each division may require the filing in such man-
ner as it shall prescribe of such data as it may require in respect of
contracts for future deliveries existing at the effective date of this
Code.
3. No such schedule of prices and terms and conditions of sale
filed by any member, or in effect at any time in any quarter of any
125
calendar year, sliall be such as to permit the sale of any product at
less than the lower of the following :
(a) The cost of such product to such member during the last
period of three consecutive months or three accounting periods of
four weeks each, ending not less than thirty (30) days prior to the
first date of such quarter, which cost shall be determined pursuant
to the method of accounting and costing prescribed by the Paper
Industry Authority under this Article as soon as that method is
prescribed and theretofore pursuant to the method employed by such
member subject to such preliminary rules as the Paper Industry
Authority sliall from time to time prescribe.
(b) The lowest price scheduled for such product under the pro-
visions of this Article by any other member and then in effect.
Each schedule filed under this Article shall state whether the
prices, terms, and conditions therein specified are justified under sub-
division (a) or under subdivision (b) of this Section, and in the
case of justification under subdivision (b) shall identify the schedule
or schedules of the other member or members of the industry
justifying such prices, terms, and conditions. A schedule justified
upon the basis of the schedule or schedules of another member or
members shall become void forthwith upon the cancellations or
revisions upward of such justifying schedule or schedules.
In applying the provisions of this Section and of Sections 4 and 5
of this Article, all prices shall be calculated on a delivered basis, and
the cost of delivery shall be considered a part of the cost of the
product; provided, however, that in the case of each product the
Executive Authority of the division in which such product falls
may amplify, define, or modify this principle.
Notwithstanding the provisions of this Section, discontinued lines
or damaged goods or seconds of any product may be disposed of in
such manner and on such terms and conditions as the Executive
Authority of the division into w^iich such products fall may approve.
4. The' Paper Industry Authority shall have power on its own
initiative or on the complaint of any member to investigate any
price for any product shown in any schedule filed hereunder by
any member, and for the purpose of the investigation thereof to
require such member to furnish such information concerning the
cost of manufacturing such product as the Paper Industry Au-
thority shall deem necessary or proper for such purpose. Pending
such investigation the Administrator may suspend any such price.
If the Paper Industry Authority after such investigation shall de-
termine that such price violates the provisions hereof, or would tend
to render ineffective or seriously to endanger the maintenance of this
or any subordinate divisional code, the Paper Industry Authority
shall so notify such member and the Executive Authority with which
such price was filed, and thereupon such price shall become void and
of no effect. A notice of all decisions of the Paper Industry Au-
thority under this Section, together with the reasons therefor, shall
be filed wdth the Administrator. All such decisions shall be subject
to suspension, cancellation, or modification by the Administrator.
5. Except in fulfillment of bona fide contracts existing on the
effective date of this Code, no member of the industry shall sell
any products of the industry for domestic consumption pt a price
126
or prices lower than or upon terms or conditions more favorable
than stated in his price schedule filed as hereinbefore provided.
6. The Executive Authority of any division may, with the ap-
proval of the Paper Industry Authority, suspend for any period of
time and from time to time all or any of the provisions of Sections
2, 3, 4, and 5 of this Article in respect of any or all of the products
of such divisions; provided, however, that pending the holding
of a meeting of the Paper Industry Authority the Chairman thereof
may grant an interim approval of such action.
Article VIII — Eeports — Statistics
1. Each member shall prepare and file with the Executive Secre-
tary of the Paper Industry Authority, at such times and in such
manner as it may prescribe, statistics of plant capacity, volume of
production, volume of sales in units and dollars, orders received,
unfilled orders, stocks on hand, inventory both raw and finished,
number of employees, wage rates, employee earnings, hours of work,
and such other data or information as the Paper Industry Authority
or the Administrator may from time to time require. Any or all
information so furnished by any member shall, upon the approval of
the Administrator, be subject to checking for the purpose of verifi-
cation by an examination of the books and accounts and records of
such member by any disinterested accountant or accountants or other
qualified person or persons designated by the Paper Industry
Authority.
2. Except as otherwise provided in the Act, or in this Code, all
statistics, data, and information filed or required in accordance with
the provisions of this Code hereof shall be confidential ; and the sta-
tistics, data, and information of one member shall not be revealed to
another member. No such data or information shall be published
except in combination with other similar data and in such manner
as to avoid the disclosure of confidential information. The Paper
Industry Authority shall arrange in such manner as it may deter-
mine for the publication currently to members of each division of
the divisional totals of orders received, unfilled orders, shipments,
stocks of finished goods on hand, and production.
3. The Paper Industry Authority shall make to the Administrator
such reports as the Administrator may from time to time require.
4. In addition to information required to be submitted to the
Paper Industry 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 IX — General Provisions
1. If any member is also a member of another industry, the pro-
visions of this Code shall apply to and effect onl^ that part of his
business which is included m this industry, and if the products of
any member fall in more than one division of the industry the pro-
visions of any divisional code shall apply to and affect said mem-
ber only as to products falling in such division.
127
2. In the event that the divisional associations or Executive Au-
thorities of any two or more divisions shall be unable to agree on
any matter or matters affecting such divisions, the Paper Industry
Authority shall decide such matter, and its decision, when approved
by the Administrator, shall be binding on all concerned.
3. The Executive Authority' of any division may formulate a
complaint to the President of the United States, pursuant to the
provisions of Subdivision (e) of Section 3 of the Act, that any
paper, paperboard, or pulp is being imported into the United States
in substantial quantities or in increasing ratio to domestic produc-
tion of any competitive paper, joaperboard, or pulp, on such terms
or under such conditions as to render ineffective or seriously to
endanger the maintenance of this Code or of any divisional code
subordinate hereto and deliver the same to the Paper Industry
Authority, which shall transmit such complaint to the President.
4. The Paper Industry Authority shall have power to investigate
alleged violations of this Code and acts or courses of conduct by
any member or divisional association which are or appear to be con-
trary to the policy of the Act or which tend or may tend to render
ineffective this Code or any divisional code, and to report the same
with recommendations to the Administrator.
5. The Paper Industry Authority may, on its own initiative, or
upon application from any Executive Authority shall, present to the
Administrator recommendations based on conditions in the industry
which will tend to effectuate the operation of this Code and the
policy of the Act and in particular along the following lines :
(a) For the establishment of rules of Fair Trade Practice for the
industry and the codification of its trade customs, and the enforce-
ment thereof.
(b) For the establishment of a standard method for determining
the current cost of any product of the industry, and for a require-
ment that no member shall sell any such product below such cost.
(c) For restrictions on the creation of new facilities for the manu-
facture of any product of the industry or on the acquisition by any
member of new equipment for such manufacture, and on the shift-
ing of equipment from the manufacture of one kind or type of such
product to another kind or t3^pe thereof.
(d) For the establishment of terms and conditions regarding sales
to dealers and distributors by members of tlie industry.
(e) For the establishment of plans to bring about a reasonable
balance between the production and consumption of the products
of the industry.
(f) For the establishment of rules relative to work on Sundays
and holidays and to a weekly day of rest and to overtime work
generally and rates of wages therefor.
Such recommendations, when approved by the Administrator,
shall have the same force and effect as other provisions of this Code.
6. Any work or process incidental to, and carried on by a member
at his plant as a part of the manufacture of any product of the
industry, shall be regarded as a part of the industry.
7. In order to maintain at all times an adequate domestic supply
of raw material for the use of the industry, it is the declared purpose
of the industry to conserve forest resources and bring about the
128
sustained production thereof. The Paper Industry Authority and
the executive authorities of the respective divisions shall cooperate
with the Secretary of Agriculture and other National and State
officials and agencies and with the code authorities of other industries
in planning such practical measures as may be necessary to accom-
plish such declared purpose ; and shall, upon the request of the
Secretary of Agriculture, join with the Lumber and Timber Prod-
ucts Industries in any conference which may be held pursuant to
the provisions of Article X of the Code of Fair Competition of
Lumber and Timber Products Industries approved by the President
on August 19, 1933.
8. The Paper Industry Authority shall make a study of condi-
tions in the industry to determine the feasibility of the adoption of a
shorter working day and shall, within three (3) months after the
effective date of this Code, make a report of its findings to the
Administrator. The Paper Industry Authority shall also submit to
the Administrator within six (6) months after the effective date of
this Code a plan for the stabilization and regularization of employ-
ment.
9. Such of the provisions of this Code or of any divisional code
as are not required to be included therein by the Act may, with the
approval of the President of the United States, be modified or
eliminated as changes in circumstances or experience may indicate.
10. This Code and each divisional code and all the provisions
thereof are expressly made subject to the right of the President, in
accordance with the provisions of Clause 10 (b) of the Act, from
time to time to cancel or modify any order, approval, license, rule,
or regulation issued under Title I of said Act, and specifically to
the right of the President to cancel or modify his approval of such
code or any conditions imposed by him upon his approval thereof.
11. This Code sliall become effective on the second Monday after
the date upon which it shall be approved by the President of the
United States.
Approved Code No. 120
Registry No. 405-1-04
SCHEDULE A
Paper, the manufacture of which is excluded from the industry :
(a) The product referred to as "standard newsprint paper" in paragraph
1672 of the Tariff Act of 1022 and in paragraph 1772 of the Tariff Act of 11)30.
(b) All other papers, except rotogravure paper, when, but only when and
only to the extent that, such other papers are manufactured and sold for
regular use in the making of daily newspapers.
SCHEDULE B
Binders Board and all other Wet Machine Boards.
Bristol Boards. ^ ^ ^ , .... ,
Cardboard and Mill Blanks, coated or surface-treated subsequent to Initial
manufacture.
Lightweight Chip Boards, Bogus Wrapping, Sheathing Paper, Indented, Ham
Wrapping.
Sulphate Boards and Sulphate Corrugating Materials.
Specialty Folding and Specialty Non-Folding Boards, including all boards made
. from prime or fresh wood pulp, jute stock, and rope stock.
Binders Board Division
Blotting Paper Division
Book Paper Division
Bristol Board Division
Cardboard Division
Cellulose Wadding Division
Cover Paper Division
Fibreboard Division
Glassine and Greaseproof
Division
Groundwood Paper Division
Kraft Paper Division
SCHEDULE C
Leatherboard Division
Bogus Wrapping and Packing Division
Paper Shipping Sack Division
Pulp Producers Division
Soda Pulp Division
Specialty Paper and Board Division
Sulphate Pulp and Board Division
Sulphite Paper Division
Paper Tissue Paper Division
Vegetable Parchment Division
Writing Paper Division
(129)
29229"-
-296-101-
-34-
SUBORDINATE CODE OF FAIR COMPETITION FOR THE BINDERS
BOARD DIVISION OF THE PAPER AND PULP INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following is hereby established as the Subordi-
nate Code of Fair Competition of the Binders Board Division of
the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
" General Code " — the general code of the Paper and Pulp In-
dustry.
" This Division " — the Binders Board Division of such industry
as defined in Section 2 of Article II of the General Code.
" Executive Authority " — the body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code,
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III— Administration
1. There is hereby created a body to be known as the " Executive
Authority of the Binders Board Division of the Paper Industry ",
which shall consist of the Executive Committee of the Binders Board
Manufacturers' Association and of one or more members of the Paper
Industry Authority designated by the Administrator pursuant to
Section 1 of Article II of the General Code. The members of the
Paper Industry Authority so designated shall have no vote.
2. The Executive Authority is charged generally with the admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and in
obtaining from members within this Division such reports, statistics,
and other data as the Paper Industry Authority may require.
(130)
131
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information as may from time to time be required by the
Executive Authority.
Article IY — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Practices
through the Paper Industry Authority to tlie Administrator for
approval, and the same when approved shall have the same force
and effect as if incorporated in this Code.
Article V — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be a^Dproved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE BLOTTING
PAPER DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Blotting Paper Division of the Paper and
Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
" General Code " — The General Code of the Paper and Pulp In-
dustry.
" This Division " — The Blotting Paper Division of such industry
as defined in Section 2 of Article II of the General Code.
" Executive Authority " — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Di-
vision and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the pro-
visions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Blotting Paper Division of the paper industry,
which shall consist of the Executive Committee and one or more
members of the Paper Industi*y Authoritj; designated by the Admin-
istrator pursuant to Section 1 of Article II of the General Code.
The one or more members so designated shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering- the General Code, and
in obtaining from members within this Division such reports, statis-
tics, and other data as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information as may from time to time be required by the
Executive Authority.
(132)
133
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Practices
through the Paper Industry Authority to the Administrator for
approval, and the same when approved shall have the same force
and effect as if incorporated in this Code.
Article V — Effecti\^ Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE BOGUS
WRAPPING AND PACKING DIVISION OF THE PAPER AND PULP
INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Bogus Wrapping and Packing Division of
the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
" General Code " — The general code of the Paper and Pulp In-
dustry.
" This Division " — The Bogus Wrapping and Packing Division of
such industiy as defined in Section II of Article II of the General
Code.
" Executive Authority " — The body created by Section I of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Abttcle II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is herebj^ recognized as binding in this Di-
vision and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Ad]ministration
1. There is hereby created a body to be known as the " Executive
Authority of the Bogus Wrapping and Packing Division of the Paper
Industry ", which shall consist of the Executive Committee of the
Bogus Wrapping and Packing Association and of one to three mem-
bers of the Paper Industry Authority designated by the Administra-
tor pursuant to Section 1 of Article II of the General Code. The
person or persons so designated shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and in
obtaining from members within this Division such reports, statistics,
and other data as the Paper Industry Authority may require.
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4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish sucli
additional information as may from time to time be required by the
Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and ma}" from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same force
and effect as if incorporated in this code.
Article V — Effective Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE BOOK PAPER
DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Book Paper Division of the Paper and Pulp
Industry.
Article I — ^Definitions
Words used herein are hereby defined as follows :
" General Code " — The general code of the Paper and Pulp In-
dustry.
" This Division " — The Book Paper Division of such industry,
consisting of the manufacturers of the products of such division as
determined under Section 2 of Article II of the General Code.
" Executive Authority " — The body created by Section I of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Di-
vision and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Book Paper Division of the Paper Industry which
shall consist of the Executive Committee of the Book Paper Manu-
facturers' Association and of such members of the Paper Industry
Authority as may be designated by the Administrator pursuant to
Section I of Article II of the General Code. The members so desig-
nated shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics, and other data as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
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137
additional information as may from time to time be required by the
Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same
force and effect as if incorporated in this code.
Article V — Production
The Executive Authority shall, with a view to effectuating the
policy of the Act, make studies and in its discretion formulate plans
with a view to equalizing production in the Division with demand
for its products, and, through the Paper Industry Authority, may
from time to time make recommendations in relation thereto and
may propose agreements or amendments to this Code designed to
carry such recommendations into effect.
Article VI — Effective Dat-e
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
29229« 296-101 34-
SUBORDINATE CODE OF FAIR COMPETITION FOR THE BRISTOL
BOARD DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Bristol Board Division of the Paper and
Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
" General Code " — The general code of the Paper and Pulp In-
dustry.
" This Division " — The Bristol Board Division of such industry
as, defined in Section 2 of Article II of the General Code,
" Executive Authority " — The body created by Section I, of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the pro-
visions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be. known as the Executive
Authority of the Bristol Board Division of the Paper Industry
which shall consist of the Executive Committee and of three
members of the Paper Industry Authority designated by the Ad-
ministrator pursuant to Section 1 of Article II of the General Code.
The three members so designated shall have no vote.
2. The Executive Authority is charged generally with the Ad-
ministration of this Code, and shall have such other powers and
duties as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Pap)er Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics and other data as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those pro-
vided in Article VIII of the General Code, members shall fur-
nish such additional information as may from time to time be
required by the Executive Authority.
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139
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same
force and effect as if incorporated in this code.
Article V — Effective Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the
United States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE CARD.
BOARD MANUFACTURERS' DIVISION OF THE PAPER AND PULP
INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Cardboard Division of the Paper and Pulp
Industry.
Article I — Definitions
"Words used herein are hereby defined as follows :
"General Code"— The general code of the Paper and Pulp
Industry.
"This Division" — The Cardboard Division of such industry as
defined in Section 2 of Article II of the General Code.
" Executive Authority "—The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Section 4 of Article III of the General
Code. , . -r^. .
2. The General Code is hereby recognized as binding m this Divi-
sion and on all members of the industry included within this Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the pro-
visions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Cardboard Division of the Paper Industry which
shall consist of the Code Committee and of the three members of
the Paper Industry Authority designated by the Administrator pur-
suant to Section 1 of Article II of the General Code. The three
members so designated shall have no vote.
2. The Executive Authority is charged generally with the ad-
ministration of this Code, and shall have such other powers and
duties as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics, and other data as the Paper Industry Authority may
require.
4. Subject to restrictions and safeguards similar to those pro-
vided in Article VIII of the General Code, members shall furnish
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141
such additional information as may from time to time be required
by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and, after ap-
proval by the Division, may from time to time submit any such
Trade Customs or Fair Trade Practices through the Paper Indus-
try Association to the Administrator for approval, and the same
when approved shall have the same force and effect as if incor-
porated in this code.
Article V — Effective Date
This Code shall become effective on the second Monday after
the date upon which it shall be approved by the President of the
United States.
^
SUBORDINATE CODE OF FAIR COMPETITION FOR THE CELLULOSE
WADDING DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the subordinate Code of
Fair Competition for the Cellulose Wadding Division of the paper
and pulp industry : '
Article I — Definitions
Words used herein are hereby defined as follows:
General Code. — The General Code of the paper and pulp industry.
This Division. — Cellulose Wadding Division of such industry con-
sisting of the manufacturers of the product defined in Article VI
hereof.
Executive Authority. — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this
division and on all members of the Industry included within this
division.
3. In the event that any provision of this Code shall be found to be
inconsistent with the provisions of the General Code the provisions
of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Cellulose Wadding Division of the Paper In-
dustry which shall consist of the Executive Committee of the Cellu-
lose Wadding Manufacturers' Association and such members of the
Paper Industry Authority as may be designated by the Administra-
tor, pursuant to Section 1 of Article II of the General Code. The
members so designated shall have no vote.
2. The Executive Authority is charged generally with the admin-
istration of this Code and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and
in obtaining from members within this division such reports, statis-
tics, and other data as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those pro-
vided in Article VIII of the General Code, members shall furnish
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143
such additional information as may from time to time be required
by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and ma}^, from
time to time, submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same force
and effect as if incorporated in tliis Code.
Article V — Production
With a view to effectuating the policy of the Act, the Executive
Authority shall make studies and, in its discretion, formulate plans
with a view to equalizing production in the Division with demand
for its products; and through the Paper Industry Authority may
from time to time make recommendations in relation thereto and
may propose agreements or amendments to this Code designed to
carry such recommendations into effect.
Article VI — Application of Code
This Code shall cover all Cellulose Wadding regardless of its form
or ultimate use. Cellulose Wadding shall be deemed to mean the
basic paper product chiefly used in the manufacture of sanitary
napkins and cleansing tissues, but also used for many other purposes.
Article VII — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE COVER
PAPER MANUFACTURERS' ASSOCIATION DIVISION OF THE
PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Cover Paper Manufacturers' Association
Division of the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
" General Code " — the general code of the Paper and Pulp
Industry.
" This Division " — The Cover Paper Manufacturers' Association
Division of such industry as defined in Section 2 of Article II of
the General Code.
" Executive Authority " — the body created by Section 4, of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the general Code.
2. The General Code is hereby recognized as binding in this
Division and all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the pro-
visions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body, to be known as the Executive
Authority of the Cover Paper Division of the Paper Industry, which
shall consist of the Executive Committee and Industrial Control
Committee of the Cover Paper Manufacturers' Association and of
three members of the Paper Industry Authority designated by the
Administrator pursuant to Section 1 of Article II of the General
Code. The member so designated shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and
in obtaining from members within this Division such reports, statis-
tics, and other data as the Paper Industry Authority may require.
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145
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information to the Secretary as may from time to time
be required by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator for
approval, and the same when approved shall have the same force
and effect as if incorporated in this code.
Article V — EFrECTm;: Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
Article VI — Application
This code in all its provisions shall inure to the benefit of and be
binding upon all producers of cover paper.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE FIBRE
BOARD DIVISION OF THE PAPER AND PULP INDUSTRY
To effectuate the policies of Title I of the National Industrial Re-
covery Act the following is hereby established as the Subordinate
Code of Fair Competition of the Fibre Board Division of the Paper
and Pulp Industry.
Article I — Definitioxs
The word,s used herein are hereby defined as follows :
General Code. — The General Code of the Paper and Pulp Industry.
TMs Division. — The Fibre Board Division of such industry as de-
fined in Section 2 of Article II of the General Code.
Executive Authority. — The body created by Section 1, Article III
hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized a.s binding on this divi-
sion and all members of the industry included in this division.
3. In the event that any provision of this code shall be found to be
inconsistent with the provisions of the General Code, the provisions
of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the " Executive
Authority " of the Fibre Board Division of the paper industry, which
shall consist of the Executive Committee of the Fibre Board Manu-
facturers' Association, together with such person or persons as may
be designated by the Administrator pursuant to Section 1 of Article
II of the General Code. The person or persons so designated by the
Administrator shall have no vote.
2. The Executive Authority is charged generally with adminis-
tration of this code and shall have such other powers and duties as
are prescribed herein or in the General Code,
3. The Executive Authority shall cooperate with and assist the
paper industry authority in administering the General Code and
shall obtain from members within this division such reports, sta-
tistics, and other data as the paper industry authority may require.
4. The Executive Authority shall have power to investigate alleged
violations of this code and acts or courses of conduct by any member
which are or appear to be contrary to the policy of the Act or which
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147
tend or may tend to render ineffective this code, and to report the
same with recommendations to the paper industry authority.
5. The Executive Authority may formulate such plans as they
may determine to equalize production and demand in this division
and may from time to time present the same to the Administrator
through the paper industry authority for approval, and the same,
when approved, shall have the same force and effect as if incorporated
in this code.
6. Subject to the same restrictions and safeguards as provided in
Article VTII of the General Code, members shall furnish such in-
formation and statistics as may, from time to time, be required by
the Executive Authority.
Article IV
Tlie Executive Authority shall formulate the recognized trade
customs and fair trade practices of this division and may from time
to time submit any such trade customs or fair trade practices through
the paper industry to the administrator for approval and the same
when approved shall have the same force and effect as if incorporated
in this code.
Article V
The provisions of this code may, with the approval of the admin-
istrator, be modified or eliminated as changes in circumstances
or experience may indicate. It is contemplated that from time to
time supplementarv provisions to this code to prevent unfair compe-
tition in price and other unfair and destructive competitive prices
and to effectuate the other provisions and policies of the Act will
be submitted for the approval of the President.
Article VI
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE GLASSINE
AND GREASEPROOF DIVISION OF THE PAPER AND PULP
INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition for the Glassine and Greaseproof Division of the
Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General Code. — The General Code of the Paper and Pulp In-
dustry.
This Division. — The Glassine and Greaseproof Division of such
Industry as defined in Section 2 of Article II of the General Code.
Executive Authointy. — The body created by Section 1, of Article
III hereof.
Secretary. — The Secretary of the Glassine and Greaseproof Manu-
facturers' Association,
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found
to be inconsistent with the provisions of the General Code, the pro-
visions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be laiown as " The Executive
Authority " of the Glassine and Greaseproof Division of the Paper
Industry which shall consist of the Executive Committee of the
Glassine and Greaseproof Manufacturers' Association and of one to
three members of the Paper Industry Authority designated by the
Administrator pursuant to Section 1 of Article II of the General
Code. The members of the Paper Industry Authorit}^ so designated
shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
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149
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, statis-
tics, and other data as the Paper Industry Authority may require,
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information to the Secretary as may from time to time
be required by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade;
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same force
and effect as if incorporated in this Code.
Article V — Effectlve Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
Article VI — Application
This Code in all of its provisions shall inure to the benefit of and
be binding upon all producers of Glassine and Greaseproof.
Article VII — Grades
This Code shall cover all grades of Glassine and Greaseproof.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE GROUND
WOOD PAPER DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Ground Wood Paper Division of the Paper
and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General 6'oJe.— The General Code of Fair Competition for the
Paper and Pulp Industry.
This Division. — The Ground Wood Paper Division of such in-
dustry as defined in Section 2, Article II, of the General Code.
Executive Authority. — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and on all members of ^ the industry included within this
Division.
3. In the event that any provision of this Code shall be found to be
inconsistent with the provisions of the General Code, the provisions
of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Ground Wood Paper Division of the Paper In-
dustry which shall consist of the Board of Governors of the Ground
Wood Paper Association together with such person or persons as
may be designated by the Administrator pursuant to Section 1, Ar-
ticle II of the General Code. The person or persons so designated
by the Administrator .shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code and shall have such other powers and duties as
are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and in
obtaining from members within this Division such reports, statistics,
and other data as the Paper Industry Authority may require.
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151
4. Subject to the same restrictions and safeguards as provided in
Article VIII of the General Code, members shall furnish such addi-
tional information as may from time to time be required by the
Executive Authority.
Article IV — Fair Trade Practices and Trade Customs
1. Trade Practice Rules. — The Executive Authority shall from time
to time submit Fair Trade Practices through the Paper Industry
Authority to the Administrator for approval, and the same when
approved shall have the same force and effect as if incorporated in
this Code.
2! Trade Customs. — The Executive Authority shall formulate the
recognized Trade Customs of this Division, and may from time to
time submit any such Trade Customs through the Paper Industry
Authority to the Administrator for approval and the same when
approved shall have the same force and effect as if incorporated in
this Code.
Article V — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE KRAFT
PAPER DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Kraft Paper Division of the Paper and
Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General Code.—T\\^^ general code of the Paper and Pulp Industry.
This Division.— The Kraft Paper Division of such industry as
defined in Section 2 of Article II of the General Code.
Executive Authority. — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and on all members of the industry included within this Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Kraft Paper Division of the Paper Industry which
shall consist of the Executive Committee of the Kraft Paper Associa-
tion, and such advisory member or members of the Paper Industry
Authority as may be designated by the Administrator, pursuant to
Section 2 of Article II of the General Code. The person or persons
so designated shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics, and other data as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information as may from time to time be required by the
Executive Authority.
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153
Article IV — Trade Customs
The Executive Autliority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same force
and effect as if incorporated in this code.
Article V — Amendments
Such of the provisions of this code as are not required to be in-
cluded therein by the Act, may, with the approval of the President
of the United States, be modified or eliminated as changes in cir-
cumstances or experience may indicate. It is contemplated that
from time to time supplementary provisions to this code to prevent
unfair competition in price and other unfair and destructive com-
petitive practices, and to effectuate the other purposes and policies
of the Act, will be submitted for the approval of the President.
Article VI — Effective Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE LEATHER-
BOARD DIVISION OF THE PAPER AND PULP INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following is hereby established as the Subordinate
Code of Fair Competition of the Leatherboard Division of the Paper
and Pulp Industry.
Article I — Definitions
The words used herein are hereby defined as follows:
" General Code " — the general code of the Paper and Pulp
Industry.
" This division " — the Leatherboard Division of such industry as
defined in Section 2 of Article II of the General Code.
" Executive Authority " — the body created by Section 1, Article
III, hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding on this divi-
sion and all members of the industry included in this division.
3. In the event that any provision of this code shall be found to
be inconsistent with the pro\'isions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the " Executive
Authority " of the Leatherboard Division of the paper industry,
Avhich shall consist of the Executive Committee of the Eastern
Leatherboard Conference, together with such person or persons as
may be designated by the Administrator pursuant to Section 1 of
Article II of the general code. The person or persons so designated
by the Administrator shall have no vote.
2. The Executive Authority is charged generally with administra-
tion of this code and shall have such other pov/ers and duties as are
prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
paper industry authority in administering the General Code and
shall obtain from members within this division such reports,
statistics, and other data as the paper industry authority may require.
4. The Executive Authority shall have power to investigate alleged
violations of this code and acts or courses of conduct by any mem-
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155
ber which are or appear to be contrary to the policy of the Act or
which tend or may tend to render ineffective this code, and to report
the same with recommendations to the paper industry authority.
5. The Executive Authority may formulate such plans as they may
determine to equalize production and demand in this division and
may from time to time present the same to the Administrator through
the 2)aper industry authority for approval, and the same, when ap-
proved, shall have the same force and effect as if incorporated in
this code.
6. Subject to the same restrictions and safeguards as provided in
Article VIII of the General Code, members shall furnish such in-
formation and statistics as may from time to time be required by
the Executive Authority.
Article IV
The Executive Authority shall formulate the recognized trade
customs and fair trade practices of this division and may from time
to time submit any such trade customs or fair trade practices through
the paper industry to the administrator for approval and the same
when approved shall have the same force and effect as if incorporated
in this code.
Article V
The provisions of this code may with the approval of the ad-
ministrator 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 to prevent unfair com-
petition in price and other unfair and destructive competitive prices
and to effectuate the other provisions and policies of the Act will be
submitted for the approval of the President.
Article VI
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE PAPER
SHIPPING SACK MANUFACTURERS' DIVISION OF THE PAPER AND
PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Paper Shipping Sack Manufacturers' Divi-
sion of the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General Code. — The General Code of the Paper and Pulp Industry.
This Divkion. — The Paper Shipping Sack Manufacturers' Divi-
sion of the Paper and Pulp Industry, comprising the manufacture
from paper of the following classes of sacks :
1. All Paper Valve Sacks ;
2. All sewn open-mouth paper sacks ;
3. All pasted open-mouth sacks constructed of coated rope and/or
kraf t paper, or of solid white kraf t paper ;
4. All pasted open-mouth sacks constructed of rope or combina-
tion rope and/or jute and kraft paper;
5. All pasted open-mouth paper sacks constructed of three or more
walls and having a sack surface area of more than 850 square inches;
6. All pasted open-mouth sacks, constructed of one or two walls
and being made of kraft paper and having a sack surface area of
more than 850 square inches, for packaging mill feed, flour, gypsum,
lime, plaster, cement, and all other rock products, fertilizer, pig-
ments, dry colors, clay, talc, chemical products, sand, metallic ores,
graphite, slag, rosin size, sulphur, and salt.
" Executive Authority " — The body created by Section 1 of Ar-
ticle III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordixation
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and all members of the industry included within this Division.
3. In the event that any provision of this Code shall be found
to be inconsistent with the provisions of the General Code, the
provisions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Paper Shipping Sack Manufacturers Division of
(156)
157
the Paper Industry which shall consist of the Board of Governors
of the Paper Shipping Sack Manufacturers' Association and of
one or more members designated by the Administrator pursuant to
Section 1 of Article II of the General Code. The members so des-
ignated shall have no vote.
2. The Executive Authority is charged generally with the Ad-
ministration of this Code, and shall have such other powers and
duties as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist th©
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics, and other c)ata as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those pro-
vided in Article VIII of the General Code, members shall furnish
such additional information as may from time to time be required
by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and, when ap-
proved the Division, may from time to time submit any such Trade
Customs or Fair Trade Practices through the Paper Industry Au-
thority to the Administrator for approval, and the same when ap-
proved shall have the same force and effect as if incorporated in
this Code.
Article V — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE PULP
DIVISION OF THE PAPER AND PULP INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following is hereby established as the Subordinate
Code of Fair Competition of the Pulp Division of the Paper and
Pulp Industry.
Article I — Definitions
The definitions contained in Article I of the General Code apply
to this Code also, with the following additions :
General Code. — The General Code of Fair Competition for the
Paper and Pulp Industry.
This Division. — The Pulp Division of such industry as defined in
Section 1 of Article II of the General Code, comprising all producers
of pulp in the United States.
Subdivision. — A section of this Division as provided for by Section
2 of Article II of this Code.
Pulp Executive Authority. — The agency charged with responsi-
bility for the administration of this Code as created by Section 1 of
Article II hereof.
Article II — Organization
1. The Executive Committee of the United States Pulp Producers'
Association is hereby designated as the Agency for administering
the provisions of this Code, and is hereby named and is hereinafter
referred to as The Pulp Executive Authority. The Administrator
may designate one or more persons as additional advisory members
thereof.
2. The Pulp Division of the Industry is one of the Divisions recog-
nized by the General Code. Subdivisions of the Pulp Division may
be set up to facilitate the administration of this Code.
3. Every Member of the Industry manufacturing pulp either for
his own use or for sale is eligible to membership in this Division.
Article III — Subordination
1. The General Code is hereby recognized as binding in this Divi-
sion and on all members of the Industry included in this Division.
2. This Code has been adopted by the United States Pulp Pro-
ducers' Association.
3. This Code is subordinate to the General Code, and in all of its
provisions shall inure to the benefit of and be binding upon all pro-
ducers of pulp.
4. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
(158)
159
Article IV — Administration
1. The Pulp Executive Authority is charged generally with the
administration of this Code and shall have such other powers and
duties as are prescribed herein or in the General Code.
2. Any and all disputes arising under the operation of this Code
and/or any questions of interpretation thereof shall be referred to
the Pulp Executive Authority whose decision shall be final and
binding upon all parties involved.
Article V — Accounting — Selling
1. The Pulp Executive Authority shall advise and cooperate with
the Paper Industry Authority in carrying out the provisions of
Article VII of the General Code.
2. The Pulp Executive Authority shall formulate Trade Customs
and recognized Fair Trade Practices for this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator for
approval, and the same when approved shall have the same force and
elt'ect as if incorporated in this Code.
Article VI — Statistics
1. The Pulp Executive Authority shall cooperate with and assist
the Paper Industr}'^ Authority ancl/or the Administrator in admin-
istering the General Code, and in obtaining from members within
this Division such reports, statistics, and other data as the Paper
Industry Authority and/or the Administrator may require.
2. Subject to the restrictions and safeguards as provided in Ar-
ticle VIII of the General Code, all producers of pulp shall furnish
promptly and completely such information and data as may be
required by the Pulp Executive Authority.
Article VII — Control or Imports
1. The Pulp Executive Authority shall make a continuing study
of the relationship between the productive capacity of the pulp mills
in the United States and the demand of the domestic market, and if
it shall at any time appear that pulp is being imported into the
United States in such quantities or at such prices as to cause cur-
tailment of production in the United States so that employment is
reduced and the effectuation of the purposes of the National Indus-
trial Recovery Act interfered with, the Pulp Executive Authority
shall formulate a complaint and recommendations to the President
of the United States pursuant to the provisions of subdivision (e)
of Section 3 of the Act, and shall deliver the same to the Paper
Industry Authority for transmittal to the President.
Article VIII — Amendments
Such of the provisions of this Code as are not required to be in-
cluded therein by the Act, mav, with the approval of the President
of the United States, be modified or eliminated as changes in cir-
160
cumstances or experience may indicate. It is contemplated that
from time to time supplementary provisions to this Code to prevent
unfair competition in price and other unfair and destructive com-
petitive practices, and to effectuate the other purposes and policies
of the Act, will be submitted for the approval of the President.
Article IX — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE SODA PULP
DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the subordinate Code of
Fair Competition for the Soda Pump Division of the paper and pulp
industry :
Article I — Definitions
Words used herein are hereby defined as follows:
General Code. — The General Code of the Paper and Pulp In-
dustry,
This Division. — Soda Pulp Division of such Industry as defined
in Article VI hereof.
Executive Autlionty. — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this divi-
sion and on all members of the Industry included within this division.
3. In the event that any provision of this Code shall be found to be
inconsistent with the provisions of the General Code the provisions
of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Soda Pulp Division of the Paper Industry which
shall consist of the Executive Committee of the Soda Pulp Manu-
facturers' Association and of such members of the Paper Industry
Authority as may be designated by the Administrator, pursuant to
Section 1 of Article II of the General Code. The members so desig-
nated shall have no vote.
2. The Executive Authority is charged generally with the admin-
istration of this Code and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and
in obtaining from members within this division such reports, statis-
tics, and other data as the Paper Industry Authority may require.
4. Subject to restrictions and safeguards similar to those pro-
vided in Article VIII of the General Code, members shall furnish
such additional information as may from time to time be required
by the Executive Authority.
(161)
162
Article IV — Trade Customs
Tlie Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator for
approval, and the same when approved shall have the same force and
effect as is incorporated in this Code.
Article V — Production
With a view to effectuating the policy of the Act, the Executive
Authority shall make studies and in its discretion formulate plans
with a view to equalizing production in the Division with demand
for its product; and thru the Paper Industry Authority may from
time to time make recommendations in relation thereto and may
propose agreements or amendments to this Code designed to carry
such recommendations into effect.
Article VI — Application of Code
This Code shall cover all wood pulp made by the so-called caustic
soda process.
Article VII — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
I
SUBORDINATE CODE OF FAIR COMPETITION FOR THE SPECIALTY
PAPER AND BOARD AFFILIATES DIVISION OF THE PAPER AND
PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Specialty Paper and Board Affiliates Divi-
sion of the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows:
Ge7ieral Gode.—T\i& general code of the Paper and Pulp Industry.
This Division.— The Specialty Paper and Board Affiliates Division
of such industry as defined in Section 2 of Article II of the General
Code.
Executive Authority. — The body created by Section I of Article
III hereof. A subordinate group elected by the members of this
Association.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Codo.
2. The General Code is hereby recognized as bindino; in this
Division and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Specialty Paper and Board Affiliates Division of the
Paper Industry which shall consist of the Executive Committee of the
Specialty Paper and Board Affiliates and the three members of the
Paper Industi'y Authority designated by the Administrator pursuant
to Section 1 of Article II of the General Code. The three members
so designated shall have no vote.
2. The Executive Authority is charged generally with the admin-
istration of this Code, and shall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics and other data as the Paper Industry Authority may require.
(163)
164
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information to the Secretary of the Specialty Paper and
Board Affiliates as may from time to time be required by the Execu-
tive Authority.
Article IV — Trade Custoinis
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division after adoption by
the members thereof, and may from time to time submit any such
Trade Customs of Fair Trade Practices through the Paper Industry
Authority to the Administrator for approval, and the same when
approved shall have the same force and effect as if incorporated in
this Code.
Article V — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
Article VI
This Code shall inure to the benefit of and be binding upon all
producers of the grades now represented in this Association, and such
other affiliates and grades as will from time to time be added by the
Paper Industry Authority or this Association.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE SULPHATE
PULP AND BOARD DIVISION OF THE PAPER AND PULP
INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Sulphate Pulp and Board Division of the
Paper and Pulp Industry.
1^
I
Article I — Definitions
Words used herein are hereby defined as follows :
General Code. — The general code of the Paper and Pulp Industry.
This Division. — The Sulphate Pulp and Board Division of such
industry as defined in Section 2 of Article II of the General Code.
Executive AuthoHty. — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this
Division and on all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Sulphate Pulp and Board Division of the Paper
Industry which shall consist of the Executive Committee of the
American Sulphate Pulp and Board Association, and such advisory
member or members of the Paper Industry Authority as may be
designated by the Administrator, pursuant to Section 2 of Article
II of the General Code. The person or persons so designated shall
have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code^ and ghall have such other powers and duties
as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in Administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics, and other data as the Paper Industry Authority may require.
(165)
166
4, Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information as may from time to time be required by the
Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same force
and effect as if incorporated in this code.
Article V — Amendments
Such of the provisions of this code as are not required to be in-
cluded therein by the Act, may, with the approval of the President
of the United States, be modified or eliminated as changes in circum-
stances or experience may indicate. It is contemplated that from
time to time supplementary provisions to this code to prevent unfair
competition in price and other unfair and destructive competitive
practices, and to effectuate the other purposes and policies of the
Act, will be submitted for the approval of the President,
Article VI — Effectivt: Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR TRE SULPHITE
PAPER DIVISION OF THE PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition for the Sulphite Paper Division of the Paper
and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General Code. — The General Code of the Paper and Pulp Industry.
This Division. — The Sulphite Paper Division of such industry
as defined in Section 2 of Article II of the General Code.
Executive Authority. — The body created by Section 1, of Article
III hereof.
Secretary. — The Secretary of the Sulphite Paper Manufacturers'
Association.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this Divi-
sion and on all members of the industry included within this Division.
3. In the event that any provision of this Code shall be found to
be inconsistent with the provisions of the General Code, the provi-
sions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as " The Executive
Authority " of the Sulphite Paper Division of the Paper Industry
which shall consist of the Board of Governors of, or any special Com-
mittee appointed for the purpose by, the Sulphite Paper Manufac-
turers' Association and of one to three members of the Paper Indus-
try Authority designated by the Administrator pursuant to Section
1 of Article II of the General Code. The members of the Paper
Industry Authority so designated shall have no vote.
2. The Executive Authority shall be charged generally with the
Administration of this Code, and shall have such other powers and
duties as are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this division such reports, sta-
tistics, and other data as the Paper Industry Authority may require.
(167)
168
4. Subject to restrictions and safeguards similar to those provided
in Article VIII of the General Code, members shall furnish such
additional information to the Secretary as may from time to time be
required by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division and may from
time to time submit any such Trade Customs or Fair Trade Prac-
tices through the Paper Industry Authority to the Administrator
for approval, and the same when approved shall have the same force
and effect as if incorporated in this Code.
Article V — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SUBORDINATE CODE OF FAIR COMPETITION FOR THE MANUFAC-
TURERS AND CONVERTERS OF TISSUE DIVISION OF THE PAPER
AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Manufacturers and Converters of Tissue
Division of the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General Oode.— The General Code of Fair Competition for the
Paper and Pulp Industry.
This Division. — The Manufacturers and Converters of Tissue Di-
vision of such industry comprising the manufacture and converting
in the United States of tissue paper and allied products as specifically
mentioned in Schedule A hereof.
/Subdivision. — A division or section of this division specifically
mentioned in Schedule A hereof, recognized as such by this Code.
Executive Authority. — The body created by Section 1 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this Code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this
Division and on all members of the industry engaged in manufac-
turing products falling within this Division.
3. In the event that any provision of this Code shall be found to be
inconsistent with the provisions of the General Code, the provisions
of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Manufacturers and Converters of Tissue Division
of the Paper Industry, which shall consist of the Executive Com-
mittee of this Division together with such person or persons as may
be designated by the Administrator pursuant to Section I, Article
II of the General Code. The person or persons so designated by the
Administrator shall have no vote.
2. The Executive Authority is charged generally with adminis-
tration of this Code and shall have such other powers and duties as
are prescribed herein, or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code and
(169)
170
in obtaining from members within this Division such reports, statis-
tics, and other data as the Paper Industry Authority may require,
4. The Executive Authority shall have power to investigate al-
leged violation of this Code and acts or courses of conduct by any
member or subdivisionai association which are, or appear to be, con-
trary to the policy of the Act, or which tend, or may tend, to render
ineffective this Code, and to report the same with recommendations
to the Paper Industry Authority.
5. The Executive Authority may formulate such plans as they
may determine to equalize production and demand in this Division,
or any Subdivision, and may from time to time present the same to
the Administrator through the Paper Industry Authority for ap-
proval, and the same, when approved, shall have the same force and
effect as if incorporated in this Code,
6. Subject to the same restrictions and safeguards as provided in
Article VIII of the General Code, members shall furnish such in-
formation and statistics as may, from time to time, be required by
the Executive Authority.
Article IV — Fair Trade Practices and Trade Customs
1. The Executive Authority shall confer with the members of the
industry, the consumers of its product, in respect to the stabilization
of the industry and the elimination of unfair competitive practices
and shall formulate the recognized fair trade practices and trade
customs of this Division and shall, from time to time, submit fair
trade practices and any such trade customs through the Paper In-
dustry Authority to the Administrator for approval, and the same,
when approved, shall have the same force and effect as if incor-
porated in this Code.
Article V — Subdivision al Associations
1. The subdivisions listed in Schedule A may, if they so desire,
create subdivisionai associations, which associations, however, are
included in and subject to the provisions of the Code of this
Division.
2. In the event that subdivisions or subdivisionai associations of
any two (2) or more subdivisions shall be unable to agi'ee on any
matter or matters affecting such subdivisions, the Executive Au-
thority shall decide such matters and its decision, when approved
by the Administrator, shall be binding on all concerned.
Article VI — Effective Date
This Code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
SCHEDULE A
1. The manufacture and converting of interfolded toilet paper.
2. Tlie manufacture and converting of roll toilet paper.
8. The manufacture and converting of folded, interfolded and roll towels.
4. The manufacture and converting of paper napkins.
5. The manufacture and converting of creped tissue.
6. The manufacture and converting of fruit and vegetable vsrapping paper,
exclusive of waxed papers.
7. The manufacture and converting of wrapping tissues and tissue specialties
(including waxed papers) including all tissue paper and light weight papers up
to and including 17# basis — 24x36 — 480 count, with the following exceptions:
(a) Facial Tissue.
(b) Cellulose Wadding.
8. The manufacture of jumbo rolls for sale to converters (including waxing
tissue) of all papers listed In items 1 to 7 above.
(171)
SUBORDINATE CODE OF FAIR COMPETITION FOR THE WRITING
PAPER MANUFACTURERS' ASSOCIATION DIVISION OF THE
PAPER AND PULP INDUSTRY
The following is hereby established as the Subordinate Code of
Fair Competition of the Writing Paper Manufacturers Association
Division of the Paper and Pulp Industry.
Article I — Definitions
Words used herein are hereby defined as follows :
General Code. — The general code of the Paper and Pulp Industry.
This Division. — The Writing Paper Manufacturers Association
Division of such industry as defined in Section 2 of Article II of
the General Code.
Executive Authority.— The body created by Section 4 of Article
III hereof.
The definitions contained in Article I of the General Code apply
also to this code.
Article II — Subordination
1. This Code is subordinate to the General Code and is submitted
pursuant to the provisions of Article III of the General Code.
2. The General Code is hereby recognized as binding in this
Division and all members of the industry included within this
Division.
3. In the event that any provision of this Code shall be found
to be inconsistent with the provisions of the General Code, the pro-
visions of the General Code shall prevail.
Article III — Administration
1. There is hereby created a body to be known as the Executive
Authority of the Writing Paper Division of the Paper Industry
which shall consist of the Executive Committee and Industrial Con-
trol Committee of the Writing Paper Manufacturers' Association,
and of three members of the Paper Industry Authority designated
by the Administrator pursuant to Section 1 of Article II of the
General Code. The members so designated shall have no vote.
2. The Executive Authority is charged generally with the Admin-
istration of this Code, and shall have such other powers and duties as
are prescribed herein or in the General Code.
3. The Executive Authority shall cooperate with and assist the
Paper Industry Authority in administering the General Code, and
in obtaining from members within this Division such reports, sta-
tistics, and other data as the Paper Industry Authority may require.
(172)
173
4. Subject to restrictions and safeguards similar to those provided
in Article YIII of the General Code, members shall furnish such
additional information to the Secretary as may from time to time
be required by the Executive Authority.
Article IV — Trade Customs
The Executive Authority shall formulate the recognized Trade
Customs and Fair Trade Practices of this Division, and may from
time to time submit any such trade Customs or Fair Trade Practices
through the Paper Industry Authority to the Administrator for
approval, and the same when approved shall have the same force
and effect as if incorporated in this code.
Article V — Effective Date
This code shall become effective on the second Monday after the
date upon which it shall be approved by the President of the United
States.
Article VI — Application
This code in all of its provisions shall inure to the benefit of and
be binding upon all producers of writing paper.
o
Approved Code No. 121
CODE OF FAIR COMPETITION
FOR THE
HOTEL INDUSTRY
As Approved on November 17, 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 Hotel 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 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 adojDt and approve the report, recommendations, and find-
ings of the Administrator, and do order that the said code of fair
competition, excepting, however, subsection (d) of section 1 of
article IV be, and it is hereby, approved, subject to the following
conditions :
(1) That the aforesaid subsection (d) of section 1 of article IV be,
and it is hereby, eliminated :
(2) That within 90 days from the effective date of this code, the
Administrator shall hold such further hearing upon such notice as
he, in his discretion, shall fix for the purpose of determining the
adequacy of the minimum wages established in this code, after which
his report and recommendation shall be submitted to me for my
further order, and
(3) That such further order by me shall constitute a modification
of, and shall have the effect of a further condition of, my approval of
this code.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
A dniinistrator.
The White House,
November 17^ 1933,
29182° 29fr-76 34 (175)
November 3, 1933.
The President,
The White House.
Sir: This is a report of the Hearing on the Code of Fair Competi-
tion for the Hotel Industry, conducted in accordance with the pro-
visions of the National Industrial Recovery Act. The hearings were
held in the Caucus Eoom of the new House Office Building, Septem-
ber 25, and in the large Ballroom of the Hotel Mayflower on Septem-
ber 26, 1933. The Code was presented by the American Hotel
Association, which association is a confederation of some 40 local
state hotel associations with about 4,300 members, and is said to
represent more than 50 per cent of the industry by number of rooms,
and more than 75 per cent of the industry by volume of business.
THE INDUSTRY
It is estimated that the industry comprises about 20,000 hotels, and
that between 340,000 and 350,000 persons were employed in the
hotel industry in September, 1933, as compared to about 290,000 in
1929. The increase of approximately 50,000 employees is due, to a
considerable extent, to the completion for occupancy of a number
of large hotels since 1929.
PROVISIONS OF THE CODE
The work hours may not be entirely satisfactory from a purely
social standpoint, but they represent a substantial reduction from
the hours which prevailed in the hotel industry.
The code provides for minimum wages for all employees, and will
result in a very considerable increase in amounts paid to employees.
The code further provides for review by the Administrator not later
than June 1, 1934, to ascertain whether the provisions thereof have
effectuated or will effectuate the policy and purposes of the National
Industrial Recovery Act.
The code contains an interpretation of Section 7(a) of the Na-
tional Industrial Recovery Act. I have consented to its submission
to you only for the reason that its elimination by any other method
would necessitate delaying the approval of this code until a national
convention of the American Hotel Association might be held. I
have not approved this interpretation, and recommend that you ap-
prove the code on condition that it be eliminated.
FINDINGS
I find that: (a) The code as recommended complies in all re-
spects with the pertinent provisions of Title I of the Act, including
subsection (a) of Section 7 and subsection (b) of Section 10 thereof;
and that
(176)
177
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein, and is truly representative of the
Hotel Industry; 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 v^ill 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 dministrator.
CODE OF FAIR COMPETITION
FOR THE
HOTEL INDUSTRY
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 Hotel Industry.
Article I — Application of Code
Section 1. Application of Gode.—Th^ provisions of this Code, and
such other provisions as may subsequently be approved and annexed
hereto, and except as specifically provided heremafter, shall apply
to each member of the Hotel Industry as hereinafter defined in
Article II.
Article II — Definitions
Section 1. Hotel Industry.— The term " hotel industry " as used
herein shall mean the business of operating a hotel as hereinafter
defined in Section 2. , . , n • i i
Section 2. Hotel— The term " hotel " as used herem shall include
any establishment operated for profit, which
(a) Extends lodging to the general public ;
(b) Has at least ten (10) guest rooms, available for such lodg-
ings in one building; .
(c) Charges not less than $0.50 per day per person m return tor
transient lodging. , - c /ok\
(d) Is equipped to provide lodging m at least twenty-live {ZO)
percent of its rooms without prior understanding or agreement as to
duration of any guest's stay. ^
Sec. 3. Guest.— The term " guest " as used herein shall mean any
person duly registered in a hotel for lodging. . , m
Sec. 4. Gv£st Room.— The term '^ guest room as used herem shall
mean any room offered for lodging to any duly registered guest.
Sec. 5. Employee.— The term " employee " as used herem shall
mean any person emploved by any member of the Hotel Industry.
Sec. 6. Em.ployer. — the term "employer" as used herein shall
mean anyone by whom any such employee is compensated or
employed.
Sec. 7. Definition 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. . , , „ j
(b) Clerical Employee.— The term "clerical employee as used
herein shall mean any employee engaged in office work, such as desk
clerks cashiers, accountants, bookkeepers, and similar occupations.
(e)' Service Employee. — The term "service employee" as used
herein shall mean an employee whose duties consist chiefly in render-
ing direct services to guests, and who is compensated therefor in part
bv such guests.
^ ^ (178)
179
(d) Operation Em'ployee. — The term " operat.k)n employee " as
used herein shall mean all those employees not specifically otherwise
defined herein.
(e) Watchmen amd Chmrds. — The term "watchmen and guards"
as used herein shall mean employees engaged primarily in watching
and safeguarding the premises and property of the hotel.
(f) Hotel Detective. — The term "hotel detective" as used herein
shall mean an employee engaged exclusively in detective or protective
work.
(g) Maintenance Employee. — The term " maintenance employee "
as used herein shall mean an employee essential to the upkeep or
preservation of the premises and property of a hotel.
(h) Part-time Employee. — The term "part-time employee" as
used herein shall mean an employee who works for less than the
maximum work week prescribed herein.
(i) Night Avditor. — The term " night auditor " as used herein
shall mean any night employee whose duties consist primarily in
the tabulation and verification of the daily business of the hotel.
Sec. 8. South. — The term " South " as used herein shall mean Vir-
ginia, West Virginia, Maryland, North Carolina, South Carolina,
Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Ar-
kansas, Louisiana, Oklahoma, New Mexico, Texas, and the District
of Columbia.
Sec. 9. Population. — Population shall be determined by reference
to the Fifteenth Census of the United States (U.S. Department of
Commerce, Bureau of the Census, 1930) .
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 Bargalmng. — (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 employers of labor, or their agents, in the designation
of such representatives or in self -organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
^(d) Hotels are and shall be open to capable workers, without
regard to their membership or nonmembership in any labor organi-
zation, and the right of a hotel to employ or discharge any employee
^ This section deleted by Executive order.
180
on tlie basis of individual merit and subject to the fluctuating con-
ditions of the business shall not be limited or abridged.
Sec. 2. Child Labor. — On and after the effective date of this Code,
no person under the age of sixteen (16) years shall be employed.
Where a State law prescribes a higher minimum age, this code
shall not relieve any employer within such state from complying
with such State laws.
Article V — Hours of Labor
Section 1. Bas,ic Working Hours. — On and after the effetcive date
of this Code no hotel employee, not specifically exempted hereinafter,
shall work more than fifty-four (54) hours per week, nor more
than ten (10) hours per day, nor more than six (6) days in any one
week.
No employer shall knowingly engage any employee for any time,
which when totaled with that already performed with another em-
ployer, or employers, in the industry, exceeds the maximum pre-
scribed herein.
Sec. 2. Schedule of hours to he posted. — On or within one week
after the effective dat.e of this Code, every hotel establishment shall
post and maintain in a conspicuous place the maximum working hours
for its employees.
Sec. 3. Ewcej^tions to maximwrn hours of labor. —
(a) Watchmen, guards and hotel detectives. — The maximum hours
of work prescribed in Section 1 of this Article shall not apply to
watchmen, guards and hotel detectives.
(b) Maintenance Em'ployees. — The maximum hours specified in
Section 1 of this Article shall not apply to maintenance employees,
provided, however, that such employees shall be paid at the rate
of time and one-third for all hours worked in excess of fifty-four
(54) hours in any one week.
(c) Night Auditors. — The maximum hours of work prescribed
in Section 1 of this Article shall not apply to night auditors, pro-
vided, however, that such employees shall not be permitted to work
in excess of six (6) hours in excess of the maximum hours per
week prescribed in that section, and provided further that the
number of hours worked by night auditors in any hotel establish-
ment prior to June 15, 1933, shall not be increased.
(d) Executives. — Subject to the conditions set forth in Section 4
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
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 be permitted to work in excess of the maxi-
mum hours of work prescribed in Section 1 of this Article. In the
South, executives paid not less than fifteen (15) percent less than
the wages specified may be permitted to work in excess of such
maximum periods. In Kansas and Missouri, executives paid not
less than ten (10) percent less than the wages hereinbefore specified
may be permitted to work in excess of the maximum periods of labor
prescribed in Section 1 of this Article. For the purpose of this
181
subsection (d) of this Article, each city or place shall include the
immediate trade area of such city or place.
(e) Peak Periods. — At peak times, for a period not to exceed
three (3) weeks in the first six (6) months of the calendar year,
and not to exceed three (3) weeks in the second six (6) montlxs, an
employee whose basic work week is fifty-four (54) hours may be
permitted to work not more than sixty (60) hours per week and
eleven (11) hours per day; provided, however, that in the event any
hotel establishment is open for business for any period of not more
than six (6) months in any calendar year, any such employee may
be permitted to work not more than sixtj (60) hours per week and
eleven (11) houi^ per day for a period not in excess of six (6) weeks.
All such work may be without the payment of overtime.
Sec. 4. Limitation upon 7ium,her of persoiis viorhing unrestricted
hours. — Notwithstanding the provisions of the foregoing sections of
this Article, and regardless of the number of persons otherwise per-
mitted 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 others) who shall
be permitted to work unrestricted hours shall not exceed the follow-
ing ratio: In establishments comprised of twenty (20) workers or
less the total number of workers who may be permitted to work
unrestricted hours (not including those workers specified in Section
3 (a) of this Article) shall not exceed one worker for every live (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 3 (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).
Sec. 5. Spread of uiorking hours a)id nu??iber of shifts per day. —
Not more than twelve (12) consecutive hours shall elapse between
the beginning and termination of the hours worked by any employee
in any one day, and not more than one interval off duty shall be
permitted during the course of any one day's employment.
Section 6. Extra looi'hing hour on one day a week. — On one day
each week employees may be permitted to work one extra hour, but
such hour is to be included within the maximum hours permitted
■each week.
Section 7. ConfUct with state laws. — ^When any state law prescribes
for any class of employees shorter hours of labor than those pre-
scribed in this Article, this Article shall not relieve any employer
within such State from complying with such State laws.
Article VI — Wages
Section 1. Basio schedule of wages. — On and after the effective
•date of this Code the minimum weekly rates of wages which shall
be 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 otherwise provided,
be as follows:
182
^a) CleHcdl and Operating Employees. —
(I) Within cities of over 500,000 population, no employees shall
be paid less than at the rate of $15.00 per week for a fifty-four (54)
hour work week.
(II) Within cities of from 100,000 to 500,000 population, no em-
ployee shall be paid less than at the rate of $14.00 per week for a
fifty-four (54) hour work week.
(III) Within citie3 of from 25,000 to 100,000 population, no em-
ployee shall be paid less than at the rate of $13.00 per week for a
fifty-four (54) hour work week.
(IV) Within cities, towns, villages, of from 2,500 to 25,000 popu-
lation, the wages of all classes of clerical and operating employees
shall be increased from the rates existing June 15, 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 pro-
vided further that no employee shall be paid less than at the rate
of $10.00 per week.
(V) Within towns, villages, and other places with less than 2,500"
population, the wages of all classes of clerical and operating em-
ployees shall be increased from the rates existing on June 15, 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.
For the purposes of this subsection (a) of this Section 1 of Article
VI, each city or place shall include the immediate trade area of
such city or place.
(b) Service Employees. — The wages paid to service employees by
employers shall be increased from the rates existing on June 15, 1933,
by not less than twenty (20) percent of such rates, provided, how-
ever, that the increase in the wages for any such employee shall be
not less than one dollar ($1.00) per week and provided further that
this section shall not require an increase in wages paid by employers
to such employees to more than the minimum rates specified for each
classification according to population as set forth in subsection (a)
of Section 1 of Article VI, and provided further that employers shall
guarantee to employees not less than the minimum rates so specified
for each classification according to population as set forth in said
subsection (a) of Section 1 of Article VI, irrespective of by whom
or on what basis service employees are compensated.
Sec. 2. Deductions for lodging and meals. — When it is mutually
agreed between any employer and an employee that lodging and/or
meals shall constitute a part of such employee's compensation, no
deductions for lodging shall be in excess of two dollars and fifty
cents ($2.50) per week and no deductions for meals shall be in excess
of twenty-five cents (25^) per meal.
Sec. 3. Southern Wage Differential. — The minimum rates of pay
prescribed in this Article may be reduced by not more than fifteen
(15) percent in the South, and by not more than ten (10) percent in
the states of Kansas and Missouri.
Sec. 4. Part-time employees. — 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.
Sec. 5. Weekly wages above the minimtmi not to he redticed. — The
weekly wages of all classes of employees receiving more than the
183
minimum wages prescribed in this article shall not be reduced from
the rates existing upon June 15, 1933, because of any reduction in
the number of working hours of such employees.
Sec. 6. Conflict tcith State laws. — When any State law prescribes
for any class of employees of either sex a higher minimum wage than
that prescribed in this Article, this Article shall not relieve any
employer within that State from complying with such State law.
Sec. 7. Schedule of wages to he posted. — On or within one week
after the effective date of this Code, every hotel establishment shall
post and maintain in a conspicuous place the minimum wages for its
employees.
Article VII — Trade Practice
All members of the hotel industry shall comply with the following
trade practices :
Section 1. Trade Practices. — (a) No member of the hotel indus-
try shall use advertising, whether printed, radio, or display, or of
any other nature, which is inaccurate in any material particular or
misrepresents the service, accommodations, credit terms, or policies
of the establishment, and no member shall use advertising methods
which tend to deceive or mislead guests or prospective guests.
(b) No member of the hotel industry shall secretly give anything
of value to the employee or agent of a guest or prospective guest for
the purpose of securing business, nor shall he render a bill or state-
ment of account to the employee, agent, or guest which is intention-
ally inaccurate in any material particular.
(c) No member of the hotel industry shall use advertising which
refers inaccurately in any material particular to any competitor or
his prices, values, credit terms, policies, or service.
(d) No member of the hotel industry shall advertise or charge a
" day rate " for any room to be occupied earlier than seven (7) A.M.,
and later than eight (8) P.M.
(e) No member of the hotel industry shall induce or attempt to
induce the breach of an existing oral or written contract between a
competitor and his guest or employee or interfere with or obstruct
the performances of any such contractual agreement or service.
(f) No member of the hotel industry shall secure or attempt to
secure confidential information concerning the business of a com-
petitor by any false or misleading statement or misrepresentation of
one in authority.
(g) No member of the hotel industry shall entice employees of
any competitor for the purposes of harassing such competitor or
interfering with his business.
(h) No member of the hotel industry shall secretly employ or
secretly compensate for the solicitation of business, public taxi
drivers, public porters, or public runners, or other similar public
agents.
Article VIII — Administration
Section 1. Hotel Industry Committee. — (a) To effectuate further
the policies of the Act. a hotel industry committee, hereinafter
referred to as the Code Authority, is hereby designated to cooperate
with the Administrator in the administration of this Code and as a
184
planning and fair practice agency for the hotel industry. This Code
Authority shall consist of five (5) representatives of the hotel
industry, three of whom shall be selected by members of the Ameri-
can Hotel Association, and two of whom shall be selected by non-
members of the American Hotel Association, such election to be by a
fair method approved by the Administrator, and not more than
three (3) members, M^ithout vote, who may be appointed by the
President of the United States or the Administrative authority
under the National Industrial Recovery Act. Within thirty (30)
days after the approval of this Code, the American Hotel Associa-
tion shall submit for the approval of the Administrator, a plan for
the selection of the members of the Code Authority. After the
approval of such plan, the American Hotel Association shall conduct
such elections as may be approved.
(b) In order that the Code Authority shall at all times be truly
representative of the hotel 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.
(c) Such agency may from time to time present to the Adminis-
trator recommendations based on conditions in their industry as they
may develop from time to time which will tend to effectuate the
operation of the provisions of this Code and the policy of the
National Recovery Act.
(d) Regional or local groups in the hotel industry may formulate
exceptions or additions to or modifications of the Rules of Fair
Trade Practices set forth in Article VII of this Code, applicable to
such regions or localities, provided that such additions, exceptions
or modifications are not inconsistent with any other provision of this
Code, or with the National Industrial Recovery Act. Upon ap-
proval by the Administrator, such rules shall, in the respective re-
gions or localities, have the same force and effect as any provision
of this Code.
(e) The Code Authority is empowered and set up to cooperate
with the Administrator, to make investigations as to the function-
ing and observance of any provisions of this Code, at its own in-
stance, on request of the Administrator, or complaint by any per-
sons affected, and to report the same to the Administrator.
(f) The Code Authority may require such reports as may be
necessary to administer this code, in such force as may be approved
by the Administrator. Any reports required by the Code Authority
shall be submitted to an impartial agency designated by the Code
Authority, and not a member of the industry, and shall not be re-
vealed to any member of the industry, except in summary, provided
however, that such information shall be available to the Administra-
tor upon request and provided further that such information may be
divulged if necessary to facilitate t]ie administration of this Code.
In addition to information to be submitted to the Code Authority,
there shall be furnished to the Administrator, or such agency as he
185
may designate, such statistical information as the Administrator
may deem necessary for the administration of this Code.
(g) Any member of the hotel industry shall be entitled to par-
ticipate in the selection of the members of the Code Authority, and
to participate in and share in the benefits of its activities by assenting
to and complying with requirements of this Code, and by paying his
reasonable share of the expenses of its administration. Such rea-
sonable share 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.
(h) This Code and all the provisions thereof are expressly made
subject to the right of the President in accordance with the provi-
sions of Section 10 (b) of the National Industrial Recovery Act, to
cancel or modify from time to time 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.
(i) 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, or his delegated authority, be modified
or eliminated as changes in circumstances or experience may indi-
cate. It is contemplated that from time to time supplementary pro-
visions to this Code will be submitted for the approval of the Presi-
dent to prevent unfair competition and to effectuate the purposes and
policies of Title I of the National Industrial Recovery Act.
Sec. 2. Exceptions in cases of unusual or' undue hardships. —
(a) Where the operation of the provisions of this Code impose an
unusual or undue hardship upon any member of the hotel industry or
group of such members, such member or such groups of members of
the hotel industry may make application for relief to the Adminis-
trator and the Administrator may, after such public notice and hear-
ing 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.
(b) The operation of this Code shall be reviewed by the Adminis-
trator not later than June 1, 1934, to ascertain whether the provi-
sions thereof have effectuated or will effectuate the policy and
purposes of the National Industrial Recovery Act.
Article IX — Gexeral
Section 1. Membership in associations. — Membership in the
American Hotel Association, or any affiliated or state associations,
or in any other trade or industrial association participating in the
selection" or activities of the Code Authority, or represented upon
the Code Authority, shall be open to all members of the hotel in-
dustry, and said associations shall impose no inequitable restrictions
upon admission to membership therein.
Sec. 2. Prohibition against monopolies. — The provisions of this
Code shall not be interpreted or applied to promote monopolies or
186
monopolistic practices or to eliminate or oppress small enterprises
or to discriminate against them.
Sec. 3. Prohibition against use of subterfuge. — No member of the
hotel industry shall use any subterfuge to frustrate the spirit and
intent of this Code, which is, among other things, to increase employ-
ment by universal covenant, to remove obstructions to commerce, to
shorten hours of work and to raise wages to a living basis.
Sec. 4. Expiration. — This Code shall continue in effect until June
16, 1935, or the earliest date prior thereto on which the President
shall by proclamation or the Congress shall by joint resolution, de-
clare that the emergency recognized by Section I of the National
Industrial Recovery Act has terminated.
Approved Code No. 121.
Registry No. 1728-2-09.
o
Approved Code No. 122
CODE OF FAIR COMPETITION
FOR THE
SPECIAL TOOL, DIE, AND MACHINE SHOP
INDUSTRY
As Approved on November 17, 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 Special Tool, Die, and Machine Shop
Industry, and hearings having been held thereon and the Adminis-
trator having rendered his report containing an analysis of the
said code of fair competition together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said code of fair competition complies in all respects with
the pertinent provisions of Title I of said Act and that the require-
ments of clauses (1) and (2) of subsection (a) of section 3 of the
sfii(i A pi" n 3 vp npPTt mpi' *
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 recommenda-
tions, 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 dininis trator.
The White House,
November 17, 1933.
29234° 296-102 34 (187)
November 10, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Special Tool, Die, and Machine Shop Industry, held in Washing-
ton on November 2, 1933, in accordance with the provisions of the
National Industrial Recovery Act.
PROVISIOXS AS TO HOURS AND WAGES
Employees are limited to forty (40) hours per week except during
peak periods when thev mav work an average of forty-eight (48)
hours per week for eight (8) weeks in any six (6) months' period,
provided that no unemploved workers possessing the necessary skill
are available. Time and one half will be paid to employees work-
ing in excess of eight (8) hours per day, or forty-eight (48) hours
per week.
The above limitations do not apply to executives, managers or
supervisors, receiving more than thirty-five ($35.00) dollars per
week, or to outside salesmen.
The minimum wage for factory employees will be forty cents
(40^0 pel" liour. Superannuated or disabled employees will receive
not Jess than eighty percent (80%) of the minimum, and such super-
annuated employees and learners are not to exceed five percent
(5%) of the average total number of employees. The wage differ-
entials in all classes will be equitably readjusted and will not be
decreased. No distinction in wage rates shall be made between male
and female employees.
A maximum average of forty (40) hours per week during any
five week period is provided for employees engaged in accounting,
clerical, service and sales work, and Avho may be employed not more
than forty-eight (48) hours per week during any one week. The
minimuin wage will be not less than fifteen ($15.00) dollars per
week, except that office boys and girls and messengers, to a total of
not more than five percent (5%) of the total number of employees,
will receive not less than eighty percent (80%) of this minimum
wage.
CHILD LABOR
The minimum age will be sixteen (16) years and no person under
eighteen (18) years of age will be employed in any hazardous
occupation.
ECONOMIC EFFECT OF THE CODE
Because of the very recent organization of this Industry into an
association accurate and full statistics are not yet available. The
Industry produces special tools for the production work of many
(188)
189
other industries, and depends upon the replacement of equipment
in these industries. High and low peaks of employment exist to
meet sudden demands for tools.
Approximately 11,000 employees were engaged in the work of
the Industry in 1929, but this number was reduced to about 4,700 in
1931. It is estimated that approximately 25 percent additional em-
ployees will be put to work by prospective new business and through
the operation of the schedule of hours provided in this code. Pay
rolls, for the same reason, are expected to be increased approximately
thirty-three (33) 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 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
Sj^ecial Tool, Die, and Machine Shop 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
SPECIAL TOOL, DIE, AND MACHINE SHOP INDUSTRY
Article I — Purposes
To effectuate the policy of Title I of the National Industrial Re-
covery Act during the period of the emergency by reducing and
relieving unemplojanent, improving the standards of labor, eliminat-
ing competitive practices destructive to the interests of the public,
employees and employers, and otherwise rehabilitating the Special
Tool, Die, and Machine Shop Industry, and by increasing the con-
sumption of industrial products by increasing purchasing power,
and in other respects the following provisions are established as a
Code of Fair Competition for the Special Tool, Die, and Machine
Shop Industry.
Article II — Definitions
The term " employee " as used herein includes anyone engaged
in the industry in any capacity receiving compensation for his
services, irrespective of-i^ie 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 '' industry " as used herein is defined to include the
design, development, manufacture, repair, and/or assembly for sale
of special tools, special dies, moulds, pressure moulds, special jigs,
special gauging fixtures, machinery of a special custom-built nature
not now or hereafter regularly produced in another product classifi-
cation, and/or machined parts of like character.
The term " member of the industry " includes anyone in the indus-
try as above defined, either as an employer or on his own behalf.
The term "" member of the code " means any member of the indus-
try who shall have become a member of the Code as hereinafter,
in Article VI, provided.
The term " Institute " as used herein means " The Special Tool,
Die, and Machine Shop Institute ", a national trade association.
The term "Authority " as used herein means the code authority or
agency set up pursuant to the provisions of Article VI herein.
The term "Administrator " as used herein means the administrator
of Title I of the National Industrial Recovery Act.
The term "Act " as used herein means the National Industrial
Recovery Act.
The term " President ", as used herein, means the President of the
United States.
The term " learner ", as used herein, means an employee without
previous mechanical experience engaged to become competent on one
or more machine operations but who shall not be so classified after
(190)
191
ninety (90) days' experience in the industry irrespective of whether
they are or have been employed by one or more employers.
The term " apprentice ", as used herein, shall mean a person, usu-
ally a minor, indentured to serve an employer for a specified term
of years in order to learn a trade, art, or profession.
Article III — Hours
1. No employee shall be permitted to work in excess of 40 hours
per week; provided, however, that during any period in which a
concentrated demand upon any division of the" industry shall place
an unusual and temporary burden for production upon its facilities,
and no unemployed workers possessing the necessary skill to per-
form said production work are available, an employee of such divi-
sion may be permitted to Avork an average of not more than 48 hours
for not more than 8 weeks in any 6 months' period, and provided fur-
ther that these limitations shall not apply to employees on emergency,
maintenance, or repair work, or to very special cases where restric-
tion of hours of highly skilled workers would unavoidably reduce or
delay production, or to employees engaged in try-out. and/or installa-
tion work where products of the industry must be tried out and/or
installed or demonstrated in the user's plant.
2. Where in any case an employee, other than a salaried em-
ployee, works in excess of 8 hours per day, or 48 hours per week, such
extra time shall be compensated for at not less than one and one half
times the hourly rate of such employee, excepting, however, watch-
men and firemen, who shall be exempt from the provisions of Section
I of this Article, but who shall not work in excess of six days or
more than 56 hours in any one week.
3. Employees engaged in executive, managerial, or supervisory
capacities who earn not less than $35.00 per week, and outside sales-
men, shall not be limited by any provision of this Article.
4. No one employed at manual labor, and no draftsman or de-
signer earning less than $35.00 per week, shall be deemed to be en-
gaged in an executive or managerial capacity, and excepted from the
maximum hours provided herein.
5. No employer shall knowingly engage any employee for any
time, which, when totaled with that already performed with an-
other employer, or employers, exceeds the maximum permitted
herein.
6. Accounting, clerical, service, and delivery emploj^ees may be
employed an average of 40 hours per week for any five weeks period
and not more than 48 hours in any one week.
Article IV — Wages
1. The minimum rate that shall be paid to any employee in the
Industry shall not be less than forty (400) cents per hour," excepting
superannuated or disabled employees not employed on skilled oi^era*^
tions and learners who shall receive not less than 80 percent of the
mminuim, provided, however, that the total number of such learn-
ers, superannuated, or disabled , employees, employed by any one
member of the Industry shall be restricted to five (5) percent of
192
the average total number of his employees operating under this
Code; provided, however, that any member of the Industry may
employ at least two (2) such learners and superannuated or dis-
abled employees.
2 Is'othing in this Article IV shall apply to or affect any em-
ployee apprenticed to any employer by an indenture made m pur-
suance of the laws of any state of the United States under any ap-
prentice system established and maintained by any employer.
3 The minimum wage that shall be paid to any office or any other
employee not covered in Section 1 of this Article IV shall not be
less than $15.00 per week, except that office or errand boys or girls
or messengers, who shall be limited in number to 5 percent of the
total number of office employees in any factory or plant may be paid
not less than 80 percent of the minimum ; provided, however, that
at least two (2) such office or errand boys or girls or messengers may
be employed in any factory or plant. , , „ ,
4. Equitable readjustment shall be made of all hourly wage rates
above the minimum (unless such readjustments have been made since
July 1, 1933) and a report of all such readjustments shall be made to
the Code Authority within thirty (30) days of the effective date of
this Code. i j j; i
5. No distinction in rates shall be made between male and temale
employees where the same class of work is performed, regardless of
whether compensation is based on a monthly, piecework, or other
basis.
Article V — General Labor Provisions
1. No person under 16 years of age shall be employed in the
Industry, nor anyone under 18 years of age at occupations or opera-
tions hazardous in nature or detrimental to health. The Code
Authority shall submit to the Administrator within ninety (90) days
after the President's approval of this Code, a list of such occupa-
tions. 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.
2. 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.
3. 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.
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. AVithin each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employer regu-
193
lating age of employeeSj wages, or health, fire, or general working
conditions than under this Code.
6. No employer shall reclassify employees or duties of occupations
performed or engage in any other subterfuge for the purpose of
defeating the purposes or provisions of the Act or of this Code.
7. Each employer shall post in conspicuous places full copies of
this Code.
Article VI — Administration
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. Organization and constitution of Code Authority :
(a) The Code Authority shall consist of not more than seven nor
less than five voting members. Five voting members of the Code
Authority shall be selected by the Executive Committee of the In-
stitute, and two by members of the Industry who are not members
of the Institute, if they so desire. In addition, the Administrator
may if he so desires appoint not to exceed three members without
vote to represent him or such groups or interests as may be agreed
upon.
(b) 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 anct sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be de-
termined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration.
(g) 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 sucli
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 powers and
duties, the exercise of which shall be reported to the Administrator
and shall be subject to his right, on review, to disapprove or modify
any action taken by the Code Authority.
(a) Such Code Authority may from time to time present to the
Administrator recommendations based on conditions in the Indus-
try as they may develop which will tend to effectuate the opera-
tion of the provisions of this Code.
(b) To collect from members of the Code all statistics and data
required by this Code or by the President, or reasonably pertinent
to the effectuation of Title I of the Act, and to compile same, and
disseminate among the members of the Code summaries thereof,
all in such form and manner as the Code Authority shall reasonably
prescribe, subject to approval by the Administrator.
194
(c) To represent the members of the Industry in conference with
the Administrator relative to the application of this Code and of the
Act and any regjulations issued thereunder. The Code Authority
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 on behalf of the Administrator or any mem-
ber of the Code, regarding the operation, observance, or administra-
tion of this Code. , . -,
(d) 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 VII — Trade Practices
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited :
1. Selling helow cost. — The willful or intentional sale of any of
the products or services of the Industry below the vendor's cost,
the latter to be determined in accordance with a system of account-
ing acceptable to or established by the Code Authority with the
approval of the Administrator.
2. Secret Relates. — To give or offer unearned or secret rebates,
refunds, allowances, discounts, or special services, directly or in-
directly, in connection with any product or service of the Industry.
3. Subcontracting. —To subcontract any of the products or serv-
ices of the Industry, in whole or in part, to any employee upon
terms or conditions which may directly or indirectly result in the
payment to such employee of less than the minimum hourly rates
of pay prevailing for such class of work; provided that every em-
ployee so employed be informed in advance of the minimum hourly
rates to which he is entitled.
4. Pirating. — Appropriating or attempting to appropriate ideas,
sketches, designs, or drawings originated and owned by another in
the Industry without the owner's consent.
5. False or misleading advertising. — To make, cause, or permit
to be made or published, any false, untrue, or deceptive statement in
advertising, catalogue, or otherwise, concerning the grade, weight,
quality, substance, character, nature, origin, size, or preparation of
any product and/or services of the Industry, having the tendency and
capacity to mislead or deceive purchasers or prospective purchasers.
6. Rent or lease to shop workers. — To rent, lease, or allow the use
of any floor space, bench space, and/or machine capacity, or equip-
ment, to shop workers for the purpose of manufacturing for sale or
for use any of the products and/or services of the Industry by any
member of the Industry who is keeping his plant open for the pur-
pose of operating in competition with other members of the Industry.
Article VIII — Modifications
It is contemplated that supplementary provisions or amendments
of this Code, or additional codes applicable to the Special Tool, Die,
195
and Machine Shop Industry, may from time to time be submitted in
behalf of the Institute for the approval of the President.
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 (6) 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
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 discrimi-
nate 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 in-
creases 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 XI — Effective Date
This Code shall become effective and binding on the fifth day
after its approval by the President.
Approved Code No. 122.
Registry No. 1149-23.
O
Approved Code No. 123
CODE OF FAIR COMPETITION
FOR THE
STRUCTURAL CLAY PRODUCTS INDUSTRY
As Approved on November 27, 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 Structural Clay Products 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,
November 27, 1933.
(197)
23772' 244-91 33
November 8, 1933.
The President,
The 'White House.
Sir: This is a report on the proposed Code of Fair Competition
for the Structural Clay Products Industry, and on the public hear-
ing conducted thereon in Washington, D.C., on August 22 and 23,
1933, in accordance with the provisions of the National Industrial
Recovery Act.
GENERAL STATEMENT
Four branches of this industry, producing primarily common
brick, face brick, paving brick and structural clay tile, have coop-
erated and participated through a joint committee of the industry,
in the submission of the proposed Code.
The industry has suffered severe shrinkage since 1925, its peak
year in total value of product, with an output valued at 334 million
dollars. In each year since 1925, value of output has decreased, in
1932 being 56 million dollars. It appears that the industry in
1932 afforded employment to 29 percent of the workers employed
in 1927. About 101,000 workers were reported in 1927, but only
29,500 in 1932. Number of plants declined from 1846 m 1927 to
1065 In 1932, as reported by the Division of Economic Research
and Planning.
HOURS AND WAGES
A 36-hour week is established for all plants in the industiy.
The wages provided range from 37^0 per hour in northern states
to 240 per hour in the deep south. Rates of 35, 30, 27, and 25 cents
per hour are established in intermediate, states, according to their
location and the economic situation of the industry, thus providing
a gradual differential between wage rates in extreme north and
south.
On account of the seasonal nature of much of the work in the
industry, and to permit a fair living wage for those employees that
can be used to satisfy the present limited demand for industry prod-
ucts, the 36-hour week may be averaged over a six-months' period,
the maximum being limite(i to 48 hours in any one week.
Child labor is prohibited, and the industry undertakes to adjust
wages above the minimum provided in the proposed Code, to continue
existing differential.
ECONOMIC EFFECT OF THE CODE
At present this industry is operating on a schedule of about 37
hours per week. With the 36-hour week proposed a slight increase
in employment should be possible. But with the necessitj^ of a living
(198)
199
wage, the reemployment of 1929 ^Yorkers must necessarily await
greater activity in the various construction industries.
The most imjDortant economic effect of the Code, therefore, is the
opportunity it should provide for self-government and for the work-
ing out of common emplo3anent and trade problems by the several
groups. These groups, as represented by the American Face Brick
Association, the Brick Manufacturers Association of America, the
National Paving Brick Association, and the Structural Clay Tile
Association, have in the past worked to a great extent independently
of one another, although each has been active since 1919 or earlier
in promotion and research for the benefit of its members and of the
consuming public.
The proposed Code is fair to Industry, to Labor and to the
Consumer, I believe, 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-
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
Structural Clay Products 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.
Accordingly, I hereby recommend the approval of this proposed
Code of Fair Competition for the Structural Clay Products
Industry.
Respectfully,
Hugh S. Johnson,
A diiiinistrator.
CODE OF FAIR COMPETITION
FOB THE
STRUCTURAL CLAY PRODUCTS 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 CompetMon for the Structural Clay Products Industry, and
upon approvffl by the President shall be the standard of fair compe-
tition for such industry and shall be binding upon every member
thereof.
Article II — Definitions
Industry.— The term " Industry ", as used herein, means and in-
cludes manufacturers who j^roduce in the United States and sell
common brick, face brick (mcluding glazed and enameled brick),
structural clay tile (including glazed tile), paving brick, and clay
or shale granules, and may further include any other related groups
that with the approval of the Administrator may elect to operate
under this Code.
Branch. — The term "branch", as used herein, includes any one
of the following branches of the industry— common brick, face brick,
paving brick, structural clay tile.
Region. — The term " region ", as used herein, includes any major
territory established with definite boundaries by any one of the
several branches of the industry for the purposes of administering
this Code.
Division. — The term " division ", as used herein, includes any sub-
division of any region also established with definite boundaries.
Memher of the Industry. — The term " member of the industry",
as used herein, includes anyone engaged in the industry, as above
defined, or any part thereof, either as an employer or on his own
behalf.
Employee. — 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.
Employer. — The term " employer " as used herein includes anyone
by whom any such employee is compensated or employed.
South. — The term " South " as used herein includes the following
states: Alabama, Arkansas, Arizona, California south of an east and
west line drawn through Tehachapi, Florida, Georgia, Kentucky,
Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma.
South Carolina, Tennessee, Texas, and Virginia with the exception of
the counties of Arlington, Fairfax, Loudoun, Clarke, and Frederick.
jSlorth.—T\\(i term " North " as used herein includes all territory
in the United States except that listed above under " South."
Effective Date.—T\\Q term " effective date " as used herein shall
mean the tenth day after the approval of this Code by the President.
(200)
201
President, Act, Adniinistrator. — 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— Maximum Hours
(a) Except as hereinafter set forth no employee shall be permitted
to work in excess of thirty-six (36) hours per week averaged over
either semiannual period, January 1st to June 30th, or July 1st to
December 31st, inclusive, or in excess of forty-eight (48) hours in any
one week, or in excess of eight (8) hours in any twenty-four (24)
hour period. . .
Where desirable on account of regional or local conditions,
regional committees are empowered to make further restrictions
on working hours, subject to review by the Administrator.
(b) The maximum hours specified in Section (a) of this Article
shall not apply to employees in the following classification:
(1) Employees engaged in managerial or executive capacities and
compensated on a regular salary basis in excess of $35 per week in
the North or $30 per week in the South, or employees engaged as
outside salesmen.
(2) Employees engaged in emergency maintenance or emergency
repair work involving break-downs or protection of life or property,
provided that in any such case, such employees shall be paid not
less than one and one third (lYs) times the hourly rate, for hours
worked in excess of the eight (8) hour and forty-eight (48) hour
maximum herein provided.
(3) Employees engaged at plants where employment is dependent
upon favorable weather conditions when such employment is neces-
sar}^ to recover time lost by inclement weather.
(4) Employees engaged in continuous kiln-drying and kiln-burn-
ing processes,' provided the total working hours of such employees
shall not average more than forty-eight (48) hours per week in any
continuous four (4) weeks period. When a sufficient number of
these employees is not available such employees may work eight (8)
hours in addition to forty-eight (48) hours in any one week, pro-
vided they are paid time and one third for such extra hours.
(5) Foremen, provided that foremen shall not be employed more
than 15 percent longer hours than the eight (8) and forty-eight (48)
hour maximums herein provided.
(G) Crews on floating equipment engaged by members of the in-
dustry solely in transportation on navigable waters.
(7) Watchmen at plants not manufacturing, provided that watch-
men employed at plants that are manufacturing shall not be em-
ployed more than six (6) days in any one week.
(8) Accounting, clerical, office, service, or sales employees (except
outside salesmen) provided the working hours of such employees
shall not exceed (40) forty in any one week.
(c) No employer shall knowingly permit an employee to w^ork for
a total number of hours in excess of the number of hours prescribed
for each week and each day, whether employed by one or more
employers.
202
Article IV — Wages
(a) Except as hereinafter set forth no factory or mechanical
worker or artisan shall be paid less than at the rate of thirty-seven
and one half (371/^) cents per hour. In the following states no
such employee shall be paid less than at the rate of :
(1) California, south of an east and west line drawn through
Tehachapi; thirty-five (35) cents per hour.
(2) Arizona, Arkansas, Kentucky, New Mexico, Oklahoma, and
Virginia with the exception of the counties of Arlington, Fairfax,
Loudoun, Clarke, and Frederick; thirty (30) cents per hour.
(3) North Carolina, twenty-seven (27) cents per hour.
(4) Tennessee, twenty-five (25) cents per hour.
■ (5) Alabama, Florida, Georgia, Louisiana, Mississippi, South
Carolina, and Texas ; twenty-four (24) cents per hour.
(b) The Code Authority as hereinafter established shall immedi-
ately make an investigation of the foregoing hourly rates and the
differences therein, for the purpose of recommending to the Admin-
istrator an equitable revision of such rates should any inequity be
proved to exist.
(c) Section (a) of this Article establishes a guaranteed minimum
rate of hourly pay regardless of whether the employee is compen-
sated on the basis of a time rate, or on a piece-work x^erformance
for the hours worked in any semimonthly pay period.
(d) Unit rates paid employees, whether employed on a time-rate
or piece-work performance, shall be adjusted to continue existing
wage differentials.
(e) No person employed in accounting, clerical, office, service, or
sales work shall be paid less than the rate of $15.00 per week
in any city of more than 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 citj^ of betwen 250,000 and 500,000 population, or in the imme-
diate 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 any town of less than 2,500 population. Population
shall be determined by reference to the 1930 Federal Census.
(f ) Employees emploj^ed on floating equipment engaged by mem-
bers of the industry solely in transportation on navigable waters
shall be paid not less than at the rate of $15.00 per week.
(g) Watclimen employed at plants that are not manufacturing
shall be exempt from the foregoing provisions as to minimum wages.
Watchmen employed at plants that are manufacturing shall be
paid not less than at the rate of $15.00 per week.
(h) All wages shall be paid at least twice a month and all salaries
at least once a month, in cash or by negotiable check.
Article V — Labor Provisions
(a) No person under 16 years of age shall be employed in the
industry, nor anyone under 18 j^ears of age at operations or occupa-
tions hazardous in nature or detrimental to health. The Code
203
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 certificate or permit duly issued by the authority in such State
empowered to issue employment or age certificates or permits, show-
ing that the employee is of the required age.
(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 protection,
(c) 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.
(d) 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.
(e) Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the
Act.
(f ) Each employer shall post in conspicuous places full copies of
this Code.
Article VI — Open-Price Policy
(a) Each member of the industry shall publish openly a price
list or lists containing prices, delivered at the site of consumption,
to all classifications of purchasers sold by such member, for all
products offered for sale by him, which list or lists shall contain such
complete terms, discounts, and other conditions of sale as are pro-
vided for in Article VIII. In any region where established practice
makes the filing of prices including individual transportation
charges to the site of consumption impractical for any member of the
industry in such region, any such member in any such region may
file prices at any point or points of delivery other than site of con-
sumption, subject to the approval of the regional committee for his
branch in that region, including such terms, discounts, and other
conditions of sale as are provided for in Article VIII. After such
approval granted to any such member, any other member of that
branch of the industry may likewise publish his prices at any such
point or points of delivery in addition to the publication of prices
delivered at site of consumption. Such prices, when quoted to
dealers or agents, shall not cover or include the dealer's or agent's
cost or profit.
Each member of the industry shall file with the branch committee
for his branch of the industry all such price lists, terms, discounts,
and other conditions of sale within ten (10) days after notice has
been mailed of the formation of the branch committee, which lists
shall be available to all interested members of the industry and to
the trade. Any member of the industry, upon changing his prices,
terms, discounts, or other conditions of sale, shall immediately pub-
23772° 244-01 33 2
204
lisli and file the same with the branch committee for his branch of
the industry, and such prices, terms, discounts, and other conditions
of sale shall not become effective until ten (10) days after the same
shall have been so published and filed, and copies thereof with notice
of the effective date specified shall be immediately available to the
trade and to all interested members of the industry who thereupon
may file, if they so desire, revisions of their prices, terms, discounts,
or other conditions of sale which shall become effective upon the date
when the revised price list or lists previously filed shall go into effect.
(b) It shall be unfair competition and a violation of this Code
for any member of any branch of the industry to sell, or to publish
a price for, any product of any branch of the industry at less than
the allowable cost of that product, except to absorb transportation
charges to meet the published price of any other member of that
branch of the industry for that product, such allowable cost to be
the individual direct factory cost of such member plus the weighted
average indirect allowable cost for such branch of the industry, as
determined pursuant to Section (c) of this Article. No member of
the industry shall sell any product upon a delivered basis in a mar-
ket without having first published a price for that product delivered
in that market as provided in Section (a) of this Article.
(c) The Code Authority shall from time to time determine, with
the cooperation of each branch committee, and subject to the ap-
proval of the Administrator, the items to be included in, and the
method or formula to be emploj^ed'in, the computation of the indi-
vidual direct factory cost of the members of such branch of the
industry, and the items to be included in, and the method or formula
to be employed in, the computation of the weighted average indirect
allowable cost for each branch of the industry.
(d) The Code Authority shall develop or cause to be developed
and submit to the Administrator for approval within 120 days after
the effective date of this Code a uniform cost accounting system
adaptable to the business of all members of the industry and designed
to make possible the accurate determination by each member of the
industry of his or its own individual cost, and upon such approval
of such cost accounting system, each member of the industry shall
maintain at all times an accurate record of all costs in accordance
with such system or in such other manner as will clearly indicate
and make available the information required thereby.
(e) During the period between the effective date of this Code
and the application of the cost provisions provided for in Sections
(b) and (c) of this Article each regional committee in any branch of
the industry may use the following .system of arriving at the allow-
able cost of any product in that branch. After a survey of the
estimated cost, both direct and indirect, of the reasonably efficient
plants then in operation within that region under the terms of this
Code, the regional committee may recommend to the Code Authoritv
for its approval, subject to review by the Administrator, an allow-
able cost, provided that such allowable cost shall not include any
reserves for purposes other than depreciation, or any allowance for
interest on invested capital or for developmental expenses, and pro-
205
vided further, that the distribution of indirect expenses per unit of
product, shall be on the estimated basis of an average rate of utiliza-
tion of plant facilities by such reasonably efficient plants during the
period 1927-32. Upon approval by the Code Authority of any such
allowable cost, no member of the industry shall sell, or publish a
price for any such product below its allowable cost so arrived at,
except to absorb transportation charges to meet the published price
of any other member of the industry for such product. The provi-
sions of this section shall not be availed of for the purpose of de-
laying the determination of allowable cost as provided for in Sec-
tions (b) and (c) of this Article.
(f) No unsold jDortions of inventories on hand on the effective
date of this Code shall be sold below the current allowable replace-
ment cost (estimated if plant is not operating) computed on a basis
arrived at under the provisions of this Article.
(g) Discontinued lines, off-grade material, bankrupt stocks, or
stocks in the hands of assignees for resale, out-of-date or damaged
stock, and all reclaimed or used products whose sale or use tends
to lessen the current employment of labor may be sold for less than
cost of the new standard-grade products as determined in the fore-
going sections of this Article, but only after they have been reported
to the regional committee concerned and only on such terms and
at such prices as the regional committee shall determine within ten
(10) days after receipt of the report. The decision of the regional
committee may be subject to review by the branch committee or
the Code Authority or the Administrator. In case of failure of
the regional committee to determine such prices within such ten
(10) days, the branch committee or Code Authority shall be em-
powered to make such determination. In each case where such
sale below cost is permitted, the member of the industry shall pub-
lish the price at which the product will be sold, as provided in
Section (a) of this Article.
Article VII — Capacity Control
Prior to the increasing of existing production capacitj^ in the
industry by starting the operation of existing plants within any
branch of the industry that have been shut down continuously for a
period of three years or more prior to the effective date of this Code,
or starting the operation of plants not heretofore in operation within
an}^ branch of the industry, a certificate must be procured by the
owner thereof from the branch committee of such branch of the
industry, subject to review by the Code Authority or the Admin-
istrator, certifying that the operation of such plant is consistent
with the policy of the Act. In case of a denial by a branch com-
mittee of the certificate mentioned herein, or refusal to decide within
sixty (GO) days such owner may appeal to the Code Authority or
the Administrator for a final ciecision. Nothing herein, however,
shall restrain any member of the industry from improving the
efficiency of his plant or adopting methods or machineiy to lower
production costs or improve ])roducts or from resuming operation
of any plant owned by him prior to October 1, 1931.
206
Article VIII — Terms of Sale and Credits
(a) Any branch committee may, subject to the approval of the
Administrator, establish terms of sale, maximum cash discounts, and
credit practices, which shall be uniform within that branch of the
industry, and which shall be binding upon all producers.
(b) All quotations and contracts for the sale of structural clay
products shall be in writing and shall contain a definite statement
of price, quantity, terms of payment, time and place of delivery,
and all other items necessary to form a complete understanding.
(c) Credit terms shall be uniform in each branch of the industry
to all purchasers in the same class and shall be uniformly enforced;
provided, that nothing herein contained shall prevent any manu-
facturer from refusing credit to any purchaser or requiring special
terms of payment, where in his judgment such refusal or require-
ment is necessary for the adequate protection of the account.
(d) The manufacturers of structural clay products, either on a
national basis, a regional basis, or the basis of a division of a region,
may exchange credit information, and by agreement control or
restrict credit for the purpose of eliminating losses to the industry;
and failure to give truthfully such credit information or adhere to
such agreements is an unfair method of competition and a violation
of this Code.
Article IX — ^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 this Code.
(a) Organization of Code Authority. — The Code Authority shall
consist of eight members, four of whom shall be presidents, from
time to time, of the respective associations submitting this Code,
namely American Face Brick Association, Brick Manufacturers As-
sociation of America, National Paving Brick Association, and Struc-
tural Clay Tile Association, or their successors, and four of whom
shall be elected from and by the respective branch committees of the
four branches coming under this Code, together with such repre-
sentative or representatives without vote, but in no case to exceed
three, from time to time appointed thereto by the Administrator,
for such terms as he may specify, to act as his representative or
representatives, or as representative or representatives of such inter-
ested groups as he may specify. Until the Code Authority is organ-
ized as above the presidents of the respective associations submitting
this Code shall act as the Code Authority.
(1) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall impose no inequitable restrictions on membership, and shall sub-
mit to the Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto, together
with such other informat^ion as to membership, organization, and
activities as the Administrator may deem necessary to effectuate the
purposes of the Act.
(b) Powers and Duties of Code Authority/.— The Code Authority
shall be charged with the administration of this Code throughout
207
the industry and without limiting the foregoing shall have the follow-
ing specific powers and duties, subject to the right of the Adminis-
trator, on review, to disapprove or modify any action taken by the
Code Authority.
(1) To obtain from all members of the industry such sworn
or unsworn reports, 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 mat-
ters pertinent to the provisions or operations of this Code, as the
Code Authority may specify, or as the Administrfitor may from time
to time require.
In addition to information required to be submitted to the Code
Authority, there shall be furnished to government agencies such
statistical information as the Administrator may deem necessary for
the purpose recited in Section 3 (a) of the Act.
(2) To make such surveys or investigations as may be necessary
to ascertain conditions in the industry and the observance or non-
observance of the provisions of this Code.
(3) To coodinate the activities of the branch and regional com-
mittees hereinafter referred to.
(4) To submit to the Administrator from time to time such rec-
ommendations, based on conditions in the industry, as they develop^
as, in its judgment, will improve the operation of this Code or fur-
ther effectuate the policies of the Act. Any such recommendation,
when approved by the Administrator, shall become effective as a
part of this Code.
(c) Branch Cormnittees. — Further to effectuate the policies of the
Act and to cooperate with the Code Authority there shall be estab-
lished for each branch of the industry an administrative agency to
be known as branch committee, which shall consist of one representa-
tive for each region of each branch of the industry to be selected by
each regional committee. To the end that each branch of the in-
dustry shall, so far as practicable, be self-governing under the pro-
visions of this Code, the Code Authority shall delegate to each such
branch committee such of its authority, powers, ancl duties as it may
deem necessary therefor. The president of each association shall be
a member ex officio of the branch committee of his branch of the
industry. Pending the organization of branch committees, the Code
Authority shall delegate directly to the regional committees such of
its authority, powers, and duties as shall be necessary for the imme-
diate conduct of the administration of the Code in the respective
regions.
If any regional group fails to organize within the prescribed
time and elect a member of the branch committee, the said branch
committee is empowered either to name a representative for that
region on the said branch committee, who shall act in place of ih&
regional committee, or to combine that region with an adjoining
region.
(d) Regional Committees. — Further to effectuate the policies of
the Act and to cooperate with its branch committee and the Code
Authority in administering this Code, there shall be established in
each region of each branch of the industry an administrative ngoncy
to be known as regional committee, to be elected on a faii- basis of
208
selection by the manufacturers in each branch of the industry in
each region. To the end that each region in each branch of the
industry shall, so far as practicable, be self-governing under the pro-
visions of this Code, each branch committee shall delegate to each
such regional committee such of its authority, powers, and duties as
it may deem necessary therefor.
(e) A joint regional committee may be formed in any region by
two or more branches of the industry if desired by the manufacturers
in that region.
(f) Divisional committees may be established for a subdivision of
a region by any group of manufacturers therein, with the approval
of the regional committee for that region. At the option of the
manufacturers involved, a divisional committee may include two or
more branches of the industry. The divisional committees shall
have only such powers as may be delegated to them by the regional
committees.
(g) The manufacturers in each region shall convene and elect
their regional committee within one month after the effective date
of this Code. Each regional group shall elect from among the
members of its regional committee its representative on the branch
committee of its branch of the industry within six weeks after the
effective date of this Code.
(h) No voting member of the Code Authority, and no member of
any branch, regional, or other administrative committee or agency
established pursuant to the provisions of this Code, shall hold office
for a longer term than "one year from the date of organization of
the agency to which he is elected, except by reelection.
Article X — Administrative Expense
(a) Each member of the industry who shall participate in the
selection of any regional committee or any other administrative
agency herein established, or who shall participate in the benefits
of the activities of any such administrative agencies, or who shall
otherwise assent to the provisions of this Code, shall bear his proper
proportionate share of the cost of the development and the admin-
istration of this Code. The Code Authority shall designate any of
the trade associations submitting this Code or any other appropriate
agency or agencies, to assist it in maintaining its accounts, deter-
mining such proportionate shares and in securing the collection
thereof. If a manufacturer makes more than one of the several
products covered by this Code he shall bear his proportionate share
of the expense in each branch of the industry. Failure of any such
member of the industry to pay any assessment shall be a violation
of the Code. Each trade association or agency from the funds thus
collected shall pay the proportionate share for its branch, of the
Code Authority's expense as apportioned by the Code Authority.
The basis and method of the assessments shall be established by the
Code Authority, and may be reviewed by the Administrator.
(b) Each trade association or agency from the funds collected
shall also pay the expense of the branch committee of its branch of
the industry incurred in connection with its duties under the Code
(c) Each trade association or agency shall pay out of the funds
209
collected any expense authorized to be incurred by any regional
committee of its branch.
(d) Every manufacturer shall report to the trade association or
associations, or such agency or agencies as the Code Authority shall
determine, and at such time as the Code Authority may specify, the
total shipments and deliveries from his plant, or plants, of clay
products classified according to requirements set by the Code
Authority. To fail to report, or falsely to report, shipments shall
be a violation of this Code.
Article XI — Trade Practice Rules
The following practices constitute unfair methods of competition
for members of the industry and are prohibited and when employed
shall be deemed violations of this Code :
(a) Withholding from, or inserting in the invoice^, facts which
make the invoice a false record, wholly or in any material particular,
of the transaction made on the face thereof; or the payment or
allowance of secret rebates, refunds, credits, or unearned discounts,
directly or indirex^tly, whether in money or otherwise; or the giving
of gratuities for the purpose of influencing sales.
(b) The sale of an inferior qualit}^ of structural clay product at a
fair price for such product, with the understanding tnat a product
of superior quality selling at a higher price will be delivered.
(c) Discrimination in price of structural clay products between
purchasers of the same class, not based upon difference in grade,
quantity, or quality of the product sold, or difference in cost of selling
and transportation,
(d) Inducing, or attempting to induce, the breach of a contract,
oral or written, between a competitor and his customer during the
term of such contract.
(e) Interference with or the obstruction of the performance of
a contract by the solicitation by a manufacturer or his representa-
tive, directly or indirectly, of an order for structural clay prod-
ucts, with knowledge that a signed order from the one in authority
has previously been given a competitor. An architect's specification
of a structural clay product shall not be regarded as a signed order,
(f) The renewal of sales effort bj^ a competitor on an operation
after the seller receiving the order has commenced delivery and
where a difference has arisen resulting in a cessation of delivery,
unless the said seller has had a reasonable opportunity to adjust said
difference of opinion.
(g) The payment, secretly or openly^ or offer of payment of com-
missions, allowance of improper credits, in any form or manner
whatsoever, to any person connected either directly or indirectly
with the purchase or selection of structural clay products.
(h) The payment of commissions, bonuses, or gratuities, secretly
or openly, in money or otherwise, by a manufacturer to a dealer a
salesmen for selling or influencing the sale of such manufacturer's
product.
(i) The making of lump sum bids, or installed prices by a manu-
facturer or his agent, on structural clay products, special shapes,
and other building materials, thereby concealing the unit price oT
210
each of the several items embraced therein; or guaranteeing that
any specific quantities will do the job, which are known to be actually
insufficient for the i^urpose.
(j) The making of any bid on any one structural clay product
(either lump sum or otherwise), when its acceptance is contingent
upon the acceptance of a bid on any other clay product or other
building material or commodity.
(k) The employment or use of trade names, trade marks, or other
marks of identification so similar to those previously adopted and
established by another manufacturer as to be confusing, deceiving,
or misleading to prospective purchasers.
(1) The shipment or delivery of structural clay products, which
do not reasonably conform to the standard of sample submitted as
representative of the material to be shipped, or to representations
made prior to securing order, unless with the consent of the pur-
chaser to such substitution prior to shipment.
(m) Acceptance of stocks and bonds, except at current marketable
cash value, in payment for structural clay products.
(n) The shipment of any structural clay product on consignment.
(o) Attacking a competitor's product, by making false or mis-
leading charges, or attacking his reputation or personal integrity,
or his ability to serve the trade.
(p) Eepudiation of any contract, written or oral, except for : legal
cause, or in accordance with expressed terms of the contract, or by
mutual consent.
(q) The practice of selling or offering for sale nonstandard
grades, sizes, dimensions, or classifications of structural clay products,
as determined by the branch committee of each branch of the in-
dustry, subject to review by the Administrator, for the purpose of
gaining an unfair competitive advantage.
(r) Making misleading guarantees by a manufacturer of structural
clay products, as regards the performance of his product or the
performance of any structure in which such product is' used.
(s) The giving of premiums in connection with the sales of
structural clay products.
Article XII — General
(a) No provisions of this Code shall be so applied as to permit
monopolies or monopolistic measures, or to eliminate, oppress, or
discriminate against small enterprises.
(b) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the 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.
(c) 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
211
Buch notice and hearing as he shall specify, and to become effective
on approval of the President.
(d) It is the objective of the Structural Clay Products Industry
not only to increase employment and improve the standard of living
of the workers in the Industry, but also to spread employment. Ac-
cordingly, authority is given by this Code to the regional committee
of any branch of the Industry in any region after due hearing and
with the approval of the Administrator to adopt such measures as
are necessary for the purpose of spreading and sustaining
employment.
Article XIII — Regional Divisions
The territories comprising the regions into which the United
States shall be divided, for administration of the Act in each of tho
four branches of the industry, shall be as given in Schedule A at-
tached, subject to revision by the branch committees for the respec-
tive groups, on the basis of recommendations from the regional com-
mittees in each group. These regions are subject to coordination
by the Code Authority.
Article XIV — Effecti\te Date
This Code shall become effective on the tenth day after its ap-
proval by the President of the United States.
Approved Code No. 123
Registry No. 1013-1-03
SCHEDULE A
EHSIONS FOR COMMON BRICK
1. l^eio England: — All New England States.
2. Hudson River. — All of New York State lying east of the counties of St.
Lawrence, Herkimer, Otsego, Delaware, and Sullivan, and including more
specifically Long Island and the Metropolitan Area of New York City (lying
within the New York State boundaries).
3. New Jersey. — All of the state of New Jersey.
4. Atlantic. — All of the State of Pennsylvania, east of the North and South
line drawn through Bellefonte in Centre County, and all of the State of
Delaware.
5. Southern: — Maryland, District of Columbia, Virginia, West Virginia,
Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Florida, and
Alabama.
6. Up-State New York. — All of New York state not included in Region
No. 2.
7. Oreat Lakes. — ^All of the state of Pennsylvania, west of the line drawn
North and South through Bellefonte in Centre County. All of the state of
Ohio except the counties of Cuyahoga and Lake.
8. Cleveland. — The counties of Cuyalioga and Lake in the state of Ohio.
9. Michigan. — All of Michigan.
10. Central. — All of the states of Indiana and Wisconsin and all of the state
of Illinois except the counties of Cook, Will, Du Page, and Lake; and the
counties of St. Louis, St. Charles, and Jefferson in the state of Missouri.
11. C/iicafiTo.— The counties of Cook, AVill, Du Page, and Lake in Illinois.
12. lotca-Northwest. — All of the states of Iowa, Minnesota, North Dakota,
South Dakota, and Nebraska.
13. Gulf States.-^AU of the states of Louisiana and Mississippi.
14. Southtvestern. — All of the States of Arkansas, Kansas, Oklahoma, Texas,
and New Mexico and all of the State of Missouri, except the counties of
St. Charles, St. Louis, and Jefferson.
15. Mountain. — All of the States of Montana, Idaho, Wyoming, Colorado, and
Utah.
16. Pacific Northtcest. — All of the States of Washington and Oregon.
17. Southern Pacific. — All of the States of California, Nevada, and Arizona.
REGIONS FOB FACE BBICK
1. Eastern. — New England States ; New York ; New Jersey ; Delaware ; Marj'-
land east of and including Cumbei'land ; West Virginia east of line extending
south through Cumberland, Md. ; District of Columbia ; the counties of Arling-
ton, Fairfax, Loudoun, Clarke, and Frederick in Virginia ; and Eastern Penn-
sylvania, which is Pennsylvania except the territory included in Western
Pennsylvania as defined under Central Region.
2. Central. — Ohio ; Western Pennsylvania, which is Pennsylvania west of and
including the counties of Warren, Forest, Jefferson except shale (red brick)
plants within the county, Clearfield, Blair, Cambria, and Somerset; Northeast-
ern Kentucky, which is Kentucky north of and including Pikeville and east of
and including Winchester ; Lower Peninsula of Michigan ; West Virginia west
of a line extending south through Cumberland, Md. ; and Maryland west of
Cumberland.
3. Midiccstern. — Indiana ; Northwestern Kentucky, which is Kentucky north
of Pikeville and west of Winchester ; Illinois ; Eastern Missouri, which is
Missouri east of and including the counties of Putnam, Sullivan, Linn, Chariton,
Howard, Boone, Moniteau, Miller, Pulaski, Phelps, Dent, Shannon, and Oregon ;
Wisconsin ; Northern Peninsula of Michigan ; the counties of Washington,
Dakota, Ramsey, Anoka, and Hennepin in Minnesota.
4. Southeastern. — Virginia except the five counties included in the Eastern
Region ; North Carolina ; South Carolina ; Georgia ; Florida ; Alabama ; Missis-
sippi ; Tennessee ; Southern Kentucky, which is Kentucky south of Pikeville ;
and Louisiana east of the Mississippi River.
5. Southice stern.- — Kansas ; Oklahoma ; Texas ; Arkansas ; Western Missouri,
which is Missouri except the territory included in Eastern Missouri as defined
under Midwestern Region; and Louisiana west of the Mississippi River.
(212)
213
6. Western. — Iowa ; North Dakota ; South Dakota : Nebraska ; and Minnesota
except the five counties included in the Midwestern Region.
7. Mountain. — Montana ; Wyoming ; Eastern Idaho, which is Idaho east of
and including Bliss ; Colorado ; Utah ; and New Mexico.
8. Pacifio Coast. — Washington ; Oregon ; Western Idaho, which is Idaho ex-
cept the territory included in Eastern Idaho as defined under Mountain Region ;
Nevada ; Arizona ; and California.
REX3I0NS FOR PAVING BRICTC
1. Eastern. — Maine; New Hampshire; Vermont; Massachusetts; Rhode Island;
Connecticut ; New York ; New Jersey ; Pennsylvania ; Delaware ; Maryland ; Dis-
trict of Columbia ; Virginia ; that part of North Carolina lying within and east
of the counties of Northampton, Bertie, Martin, Pitt, Craven, Jones, and Onslow ;
and the state of West Virginia, excluding the territory lying within and south
of the counties of AVood, Wirt, Roane, Kanawha, Fayette, and Greenbrier.
2. Illinois. — Illinois, Wisconsin, that part of the state of Michigan known as
the Upper Peninsula, Iowa, Minnesota, North Dakota, and South Dakota.
3. Indiana. — Indiana and that part of the state of Kentucky lying within
and west of the counties of Gallatin, Carroll, Henry, Shelby, Anderson, ]\Iercer,
Boyle, Casey, Russell, and Wayne.
4. Ohio. — Ohio and the state of Michigan, except the Upper Peninsula, and
that part of West Virginia lying within and south of the counties of Wood,
Wirt, Roaue, Kanawha, Fayette, and Greenbrier.
5. Pacific. — Idaho, Utah, Arizona, California, Nevada, Oregon, and Wash-
ington.
6. Southern. — South Carolina, Tennessee, Mississippi, Alabama, Georgia,
Florida, Louisiana (east of Mississippi), and that part of the state of Ken-
tucky lying within and east of the counties of Boone, Grant, Owen, Franklin,
Woodford, Jessamine, Gerrard, Lincoln, Pulaski, and McCreary, and that part
of the state of North Carolina lying west of the counties of Northampton,
Bertie, Martin, Pitt, Craven, Jones, and Onslow.
7. Western. — Montana, Wyoming, Colorado, New Mexico, Texas, Oklahoma,
Kansas, Nebraska, Missouri, Arkansas, and Louisiana (west of Mississippi
River).
BEGIONS FOB STRUCTURAL CLAY TILE
1. New York — Neio Jersey. — New Jersey, Delaware, Eastern Peninsula of
Maryland, Pennsylvania (east of and including the counties of Pike, Monroe,
Northampton, Bucks, Montgomery, Delaware, Chester), Connecticut, Rhode
Island (Washington County), New York (all Long Island and counties of
Westchester, Putnam, Dutchess, Columbia, Rensselaer, Albany, Greene, Schenec-
tady, Ulster, Orange, Sullivan, Rockland, all New York City).
2. East Central. — Michigan, Ohio, West Virginia, Kentucky east of and
including counties of Meade, Breckenridge, Grayson, Butler, and Logan, Vir-
ginia, District of Columbia, Maryland excepting Eastern Peninsula, Pennsyl-
vania west of counties included in New York-New Jersey Region, Is'^ew York
excepting counties in New York-New Jersey Region, all New England States
excepting Connecticut and Washington County in Rhode Island.
3. Central. — Wisconsin east of and including counties of Iron, Price, Taylor,
Clark, Jackson, LaCrosse ; Iowa (counties of Allamakee, Clayton, Dubuque,
Jack-son, Clinton, Scott) ; Missouri east of and including counties of Putnam,
Sullivan, Linn, Chariton, Howard, Boone, Moniteau, Miller, Pulaski, Phelps,
Dent, Shannon, and Oregon ; Illinois, Indiana, Kentucky west of counties in
East Central Region.
4. Ioiva-No)-thivcst. — INIontana, Wyoming, Colorado, Nebraska, North Dakota,
South Dakota, Minnesota, Wisconsin Avest of counties in Central Region, Iowa
except counties in Central Region.
5. Southeastern. — Tennessee, North Carolina, South Carolina, Georgia, Flor-
ida, Alabama, and Mississippi.
6. Southtcestern. — New Mexico, Texas, Oklahoma, Arkansas, Louisiana, Kan-
sas, and Missouri except counties listed in Central Region.
7. Paciflc Coast. — Washington, Oregon, Idaho, Nevada, California, Utah, and
Arizona.
o
Approved Code No. 124
CODE OF FAIR COMPETITION
FOR THE
MOTION PICTURE INDUSTRY
As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June IG, 1933, for my approval of a Code of
Fair Competition for the jNIotion Picture Industry, and a hearing
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. Eoosevelt, President of the United
States, pursuant to the authority vested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator, and do order that the said code of fair
competition be, and it is hereby, approved, subject to the following
conditions :
To effectuate further the policies of the act, that :
(1) Because the constituency of the code authority is named in this
code, the Administrator shall have the right to review, and if neces-
sary, to disapprove any act taken by the code authority, or by any
committee named by it, and any act taken by any board named by
it; and
(2) If, in the administration of this code, any member or tem-
porary alternate of any member of said code authority, or any
member of any board appointed by the code authority shall fail
to be fair, impartial, and just, the Administrator shall have the
2377;i° 244-92 1!3 (215)
216
right to remove such member or temporary alternate from said code
authority, and to remove such member of any such board, and, if he
deems necessary, to name another member or alternate from the
general class represented by such removed member or alternate to
replace such removed member or alternate upon said code authority
or upon any such board: and
(8) If, in the administration of this code, it shall be found by
the Administrator that there has not been sufficient representation
of any employer class in this industry on the code authority, the
Administrator shall have the right to add members from any such
class to such code authority ; and
(4) Because the President believes that further investigation with
respect to the problems of payment of excessive compensation to
executives and other employees in this industry is required, the pro-
visions of article V, division A, part 4, of this code are hereby sus-
pended from operation and shall not become effective pending fur-
ther report from the Administrator after investigation; and
(5) Because the President believes that writers, authors, and
dramatists are engaged in purely creative work, the provisions of
article V, division B, part 5, sections 1 (c), 2, 3, 4, and 6, of this
code, shall not become effective with respect to such employees ; and
(6^ Because the President believes that further investigation is
re(juired with respect to problems generally affecting unfair compe-
titive methods for the services of classes of employees of producers
rendering services of an artistic, interpretativCj technical, super-
visory, or executive nature, the provisions of article V, division B,
part 5, sections 1 (c), 2, 3, 4, and 6, of this code, are suspended from
operation and shall not become effective pending further report from
the Administrator, after investigation, as to whether such provisions
should be indefinitely suspended, or modified, altered or changed, or
become effective.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
A dministra tor.
The White House,
Novemher 27, 1933.
November 4, 1933.
The President,
The White House.
My Dear Mr. President: The Hearing on the Code of Fair
Competition for the Motion Picture Industry in the United States
was conducted in the Large Auditorium of the United States Cham-
ber of Commerce Building in AVashington, D.C., commencing on
September 12, 1933, and ending on September 14, 1933, in accordance
with the provisions of the National Industrial Recovery Act.
The following papers are included and annexed :
1. Code submitted.
2. Notice of Hearing.
3. Statement of Procedure.
4. Transcript of Record.
5. Report of the Deputy.
The Code for this industry was formulated by representative
industrial groups, because there is in this industry no trade or
industrial association fairly representative of the industry.
This industry embraces all activities connected with the produc-
tion, distribution, and exhibition of motion pictures in theaters.
The three economic divisions of this industry are entirely inter-
related with and dependent upon each other, and this Code, there-
fore, embraces every step taken by the Industry from the produc-
tion of motion pictures to their distribution and thereafter their
exhibition before the public.
The industry assumes a position of unusual importance because
of its far-reaching influence upon social and economic standards
and conduct throughout the world. The total investment in all
branches of the industry in the United States is estimated at
$2,000,000,000, of which investment $95,000,000 is represented by
production studios.
The labor provisions of the Code are, in my opinion, fair and
equitable. Every class of labor in all the divisions of the industry
is provided for as to minimum rates of pay and maximum hours of
labor, the hours generally in the production field being 3G hours
per week, and in the other divisions of the industry 40 hours per
week.
Provision is made for safeguarding the working conditions of
'" extras ", " free-lance " players, and actor employees in motion-
picture vaudeville and presentation houses.
^ A Code Authority is provided for with respect to the administra-
tion of the Code, such Code Authority being named and consisting
of five producers, distributors, and exhibitors with circuit theatre
interests, and five producers, distributors, and exhibitors without
circuit theatre interests.
I recommend such Code Authority, with the proviso, however, that
the Administrator have the right upon proper showing to disapprove
(217)
218
any of its acts or the acts of any Committees appointed by it; and
that the Administrator further have the right to remove any member
or alternate from membership upon said Code Authority and to ap-
point his successor, if such shall be deemed advisable, and to add
members to said Code Authority from any employer class in the
industry should the same be advisable.
Provision is made for the seating upon the Code Authority of
representatives of classes of employees v^hose interests may be af-
fected, upon proper occasion; and also for the designation by the
Administrator of three impartial persons to be appointed by him.
Among the proposed unfair practices is one which provides that
the Code Authority may investigate whether any employer in the
industry has offered an unreasonably excessive inducement to anyone
to enter his employ, and that if found to have done so, such employer
may be assessed the amount of the unreasonable excess payment up
to the amount of $10,000.00. However, nothing in the proposal af-
fects the validity of the agreement of employment so entered into
between the offending employer and his employee. I recommend
that such proposal shall not become effective and that the same
shall be indefinitely suspended from operation pending further order
from the President.
Among other practices of producers regulated under this Code,
is one which forbids negotiation with employees prior to thirty
days before the expiration of the period of employment. Any offers
made during such last thirty days must be communicated to the
then employing producer if he has made a bona fide offer for the
continuance of an employee in his employ, and the proposal further
contemplates that with respect to certain employees receiving a
stipulated sum per week, and following the expiration of the period
of employment, the former employing producer shall have notice
for three or six months, as the case may be, of offers made for the
services of such former employee. I recommend that such pro-
visions shall in no event apply to writers, authors, and dramatists,
and that with respect to other employees embraced within such pro-
visions that such provisions shall not become effective and shall
be suspended from operation pending further report from the
Administrator after investigation.
Unfair practices by the distributors and exhibitors are specifi-
cally provided for, together with the creation of certain Boards
known as " Clearance and Zoning Boards and Grievance Boards."
The function of the Clearance and Zoning Boards is to establish a
schedule which will be binding upon all distributors and exhibitors
in any exchange territory regulating the number of days which
must elapse between the theatres in their showing of the same
motion pictures in such territory. The Grievance Boards are set
up as industrial forums before which exhibitors and distributors may
take not only specified grievances and unfair practices for deter-
mination within the industry by such Boards but also may carry
their grievances other than those specified in the Code to such
Boards for determination. The creation of these Boards is in-
tended particularly to care for the buying problems of exhibitors,
and so that they may be assured to the greatest degree possible of
219
a sufficiency of motion-picture product with which to operate their
theatres.
The various Advisory Boards have approved this Code, as well as
labor and representative employers in the industry.
It is believed that this Code as now revised represents a great
advance in dealing efl'ectively with the problems of this industry.
I find that :
(a) The Code as revised complies in all respects with the perti-
nent provisions of Title I of the Act including, without limitations,
subsection (a) of Section 7 and subsection (b) of Section 10 thereof;
and that
(b) The respective Producers', Distributors', and Exhibitors'
Committees, under their Coordinators, were and are industrial
groups truly representative as a whole of the Motion Picture In-
dustry; and that such groups imposed no inequitable restrictions
on admission to membership therein ; and that
(c) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I of
the National Industrial Recovery Act.
Accordingly, I adopt the report of the Deputy Administrator and
I hereijy recommend the approval of the Code of Fair Competition
for the Motion Picture Industry.
Eespectfully submitted.
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
MOTION PICTURE INDUSTRY
PREAMBLE
This Code is established for the purpose of effectuating the policy
of Title I of the National Industrial Recovery Act, and shall be
binding upon all those engaged in the Motion Picture Industry.
Article I — Definitions
1. The term " Motion Picture Industry " as used herein shaK be
deemed to include, without limitation, the production, distribution,
or exhibition of motion pictures and all activities normally related
thereto, except as specifically excepted from the operation of this
Code.
2. The term " Producer " shall include, without limitation, all
persons, partnerships, associations, and corporations who shall en-
gage or contract to engage in the production of motion pictures.
3. The term " Distributor " shall include, without limitation, all
persons, partnerships, associations, and corporations who shall en-
gage or contract to engage in the distribution of motion pictures.
4. The term " Exhibitor " shall include, without limitation, all
persons, partnerships^ associations, and corporations engaged in the
ownership or operation of theaters for the exhibition of motion
pictures.
5. The term " legitimate production " as used herein shall be
deemed to refer to theatrical performances of dramatic and musical
plays peiformed on the stage by living persons.
6. The term " employee " as used herein shall be deemed to refer
to and include every person employed by any Producer, Distributor,
or Exhibitor as hereinabove defined.
7. The term " clearance " as used herein shall be deemed to refer
to that interval of time between the conclusion of the exhibition of
a motion picture at a theater licensed to exhibit such motion picture
prior in time to its exhibition at another theater or theaters and
the commencement of exhibition at such other theater or theaters.
8. The term " zone " as used herein shall be deemed to refer to
any defined area embraced within the operations of a local clearance
and zoning board.
9. The term " non-theatrical account " as used herein shall be
deemed to refer to churches, schools, and other places where motion
pictures are exhibited but which are not operated in the usual and
ordinary course of the business of operating a theater for the exhibi-
tion of motion pictures.
10. The term " affiliated Exhibitor " as used herein shall be deemed
to refer to an Exhibitor engaged in the business of operating a
(220)
221
motion-picture theatre which business is owned, controlled, or man-
aged bj^ a Producer or Distributor or in which a Producer or a
Distributor has a financial interest in the ownership, control, or
management thereof. The mere ownership, however, liy a Producer
or Distributor of any theatre premises leased to an Exhibitor shall
not constitute any such Exhibitor an " affiliated Exhibitor."
11. The term "unaffiliated Exhibitor" as used herein shall be
deemed to refer to an Exhibitor engaged in the business of operating
a motion-picture theatre which business is not owned, controlled, or
managed by any Producer or Distributor or in which no Producer or
Distributor has an interest in the ownership, management, or control
thereof.
12. The term " outside or associated Producer " as used herein shall
refer to a Producer of moton pictures, including features, short sub-
jects, and/or cartoons, and which Producer operates his or its own
production unit independently of, though in conjunction with,
another Producer or Distributor under whose trade name or trade
mark the productions of said outside or associated Producer are
released and distributed.
13. The term "Administrator " as used herein shall be deemed to
mean the National Recovery Administrator.
14. Tlie term " effective date " shall be, and this Code shall become
effective on, the tenth day following the approval of this Code by
the President of the United States.
15. Population, for the purposes of this Code, shall be determined
by reference to the 1930 Federal Census.
Article II — Administration
1. A Code Authority of the Motion Picture Industry constituted
as in this Article provided and herein referred to as the " Code
Authority " shall be the agency for the administration of this Code,
and shall have such powers as shall be necessary therefor, together
with such other powers and duties as are prescriJDed in this Code.
2. (a) The Code Authority shall consist of the following:
REPRESENTING AFFILIATED PRODUCERS, DISTRIBUTORS, AND EXHIBITORS
Merlin H. Aylesworth.
Sidney R. Kent.
George J. Schaefer.
Nicholas M. Schenck.
Harry M. Warner.
REPRESENTING UNAFFILIATED PRODUCERS, DISTRIBUTORS, AND EXHIBITORS
Robert H. Cochrane.
W. Ray Johnston.
Ed Kuykendall.
Charles L. O'Reilly.
Nathan Yamins.
(b) As and when any question directly or indirectly affecting any
class of employees engaged in the motion ]5icture industry is to be
considered by the Code Authority, one representative of such class,
selected by the Administrator from nominations made by such class
222
in such manner as may be prescribed by the Administrator, shall sit
with and become for such purposes a member of the Code Authority
with a right to vote.
(c) The Administrator may designate not more than three addi-
tional persons without vote who shall not have any direct, personal
interest in the motion picture industry nor represent any interest
adverse to the interest of those engaged therein, as representatives
of the Administration.
(d) In case of the absence, resignation, ineligibility, or incapacity
of any member of the Code Authority to act, an alternate of the same
general class of the industry and a bona fide executive, or a bona
fide Exhibitor, as the case may be, designated by such member shall
act temporarily in place of such member. Such designated alternate
shall be certified to the Code Authority by such member but the Code
Authority may reject such alternate and require another to be so
designated.
(e) Each alternate designated by a member of the Code Author-
ity to be a permanent alternate for such member shall be approved
by the Administrator.
(f) In the event any member of the Code Authority is unable
for any reason to designate his alternate, the Code Authority, sub-
ject to the approval of the Administrator, shall select such alternate
from the same general class as that of such member.
(g) No employer in the industry shall have more than one repre-
sentative at any time upon the Code Authority.
(h) A vacancy in the Code Authority subject to being filled in the
same manner as above provided in subsection (f) of this Section
shall exist when any member shall cease to be a bona fide executive
or a bona fide Exhibitor.
3. The Code Authority may make such rules as to meetings and
other procedural matters as it may from time to time determine.
4. The Code Authority may from time to time appoint Committees
which may include or be constituted of persons other than members
of the Code Authority as it shall deem necessary to effectuate the
purposes of this Code, and may delegate to an}^ such Committee gen-
erally or in particular instances any power and authority within the
scojDe of the powers granted to the Code Authority under this Code,
provided that the Code Authority shall not be relieved of its resj)on-
sibility and duties hereunder. The Code Authority may at any time
remove from any Committee any member thereof. The Code Au-
thority shall coordinate the duties of the Committees with a view to
promoting joint and harmonious action upon matters of common
interest. Any action taken by any of such Committees shall be
reviewed by the Code Authority.
5. (a) The Code Authority shall be empowered to collect from the
members of the industry all data and statistics required by the
President, or reasonably pertinent to the effectuation of Title I of
the National Industrial Recovery Act to compile the same and dis-
seminate without individual identification among the members of
the industry summaries thereof, all in such form and manner as the
Code Authority or the Administrator shall prescribe. No such
statistics, data, and information of any one member of the industry
shall be revealed to anv other member. The dissemination of sum-
223
maries of such information shall not be deemed a disclosure thereof.
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
the purposes recited in Section 3 (a) of the National Industrial
Recovery Act.
(b) The Code Authority shall have the right to make independent
investigations of violations or alleged violations of the Code by any
branch of the industry or by any person, firm, or corporation engaged
in any branch of the industry.
6. The Code Authority shall assist the Administrator in adminis-
tering the provisions of this Code, in making investigations as to the
functioning or observance of any of the provisions of this Code at its
own instance or on the complaint of any person engaged in the
industry, and shall report to the Administrator on any such matters.
The Code Authority may initiate and consider such recommendations
and regulations and interpretations, including those pertaining to
trade practices, as may come before it.
7. The Code Authority, after notice and hearing, may prescribe
additional rules governing the conduct of Producers, Distributors,
and Exhibitors among themselves and with each other and with their
employees, which rules shall be submitted to the Administrator and
if approved by the President after such notice and hearing as he
shall deem proper, shall constitute rules of fair practice for the
industry, and any violation thereof shall constitute a violation of this
Code.
8. The Code Authority shall, to such extent and in such manner
as may seem most useful, utilize the facilities of national, regional,
and local trade associations, groups, institutes, boards, and organiza-
tions in the industry,
9. No member of the Code Authority shall sit on any matter
involving his company's or his own interest directly and not as a
class. In such case the Code Authority, including such ineligible
member, shall designate an alternate of the same general class not
connected with the company or theatre of the ineligible member to
sit in his place.
10. (a) The Code Authority shall have the right to appoint,
remove, and fix the compensation of all persons whom it may employ
to assist it in any capacity whatsoever in administering this Code.
(b) The expenses of the Code Authority in administering this
Code shall be budgeted and fairly allocated among the three divi-
sions of the industry and assessed against the respective members
thereof who accept the benefits of the activities of the Code Author-
ity or otherwise assent to this Code, in such manner as shall be
determined by the Code Authority.
(c) Any person who shall fail to promptly pay any assessment
or levy made pursuant to an order of the Code Authority as an
expense in administering this Code shall not be entitled to file any
complaint under any ARTICLE or PART thereof.
Article III — General Pro\t[sioxs
Section 1. (a) Employees shall have the right to organize and
bargain collectively through representatives of their own choosing,
224
and shall be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives or in self -organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protec-
tion ;
(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, ap-
proved or prescribed by the President.
Sec. 2. This Code is not designed to promote monopolies or to
eliminate or oppress small enterprises and shall not be applied to
discriminate against them nor to permit monopolies or monopolistic
practices.
Article IV — Labor Provisions
A. On and after the effective date of this Code, in the Production
of Motion Pictures :
Section 1. Hours of employment. — (a) No employee shall work
more than forty (40) hours in any one week.
(b) No employee of the following classes shall work more than
forty (40) hours in any one week:
Accountants; accounting machine operators; bookkeepers; clerks;
firemen; garage clerks; gardeners; janitors; librarians; mail clerks;
messengers; mimeograph operators; porters; readers; restaurant
workers; seamstresses; secretaries (exclusive of Executives' secre-
taries receiving $35.00 or more per week) ; stenographers; telephone
and telegraph operators; timekeepers; typists; and watchmen.
(c) No studio mechanic of the following classes shall work more
than thirty-six (36) hours in any one week:
Artists and sculptors; automotive mechanics; blacksmiths; car-
penters; casters and mouldmakers (staff); cement finishers; chauf-
feurs and truck drivers; construction foremen (carpenters) ; electri-
cal foremen; electrical workers; floormen (electric); foundrymen;
gaffers; grips; laborers; lamp operators; machinists; marbleizers,
grainers, and furniture finishers; modelers (staff); model makers
(staff); moulders (metal); operating engineers; ornamental iron
workers; painters; pattern makers; plasterers; plumbers; projec-
tionists (except process projectionists) ; propertymen; scienic art-
ists; set drapers, sheet-metal workers; sign writers; sprinkler fit-
ters; steam fitters; structural steel workers; swing gang (property) ;
upholsterers; welders; and Laboratory Workers of the following
classifications; Chemical mixers^ negative assemblers and breaker-
downs; negative developers' assistants, negative notchers, negative
splicers, positive daily assemblers, positive developers' assistants,
positive release splicers, printers, processing and negative polishers,
release inspectors, rewinders, sensitometry assistants, shift boss
printers, and vault clerks.
(d) The maximum hours fixed in the foregoing paragraphs (a),
(b), and (c) shall not apply to employees on emergency, or main-
tenance and repair work; nor to cases where restriction of hours of
225
skilled workers on continuous processes would hinder, reduce, or
delay production ; nor to
(1) employees in executive or managerial capacities, professional
persons, actors (exclusive of so-called "extras"); attorneys and
their assistants; department heads and their assistants; directors;
doctors; managers; executives, their assistants and secretaries; pro-
fessional nurses ; producers and their assistants ; purchasing agents ;
unit business managers ; and writers ; nor to
(2) employees engaged directly in production work whose work-
ing time must necessarily follow that of a production unit, including
art directors; assistant directors; cameramen and assistants; com-
pany wardrobe men (women) and assistants; costume designers;
draftsmen; make-up artists and hairdressers; optical experts; posi-
tive cutters and assistants; process projectionists; script clerks; set
dressers ; " stand-by " or " key-men " ; sound mixers ; sound recorders ;
wardrobe fitters; nor to
(3) employees regardless of classification assigned on location
work; nor to
(4) employees engaged directly in news-reel production work in
the following classifications : editors and subeditors ; film cutters and
film joiners; typesetters; cameramen and soundmen; the working
hours of news-reel cameramen and soundmen shall be limited to three
hundred and twenty (320) hours in any eight (8) week period, to be
computed from the time such employees leave their base of operation
with their equipment until the time of their return, or are required
to remain in a designated place; contacting and planning shall not
be computed as working hours ; nor shall this limitation on working
hours apply to news-reel cameramen and soundmen who make special
trips of a semivacational nature on trains, ships, etc., or who shall be
assigned to duty at a summer or winter resort for an extended period
of time, nor to news-reel cameramen and soundmen on roving or
" gypsy " assignments ; nor to
(5) employees of producers of animated motion-picture cartoons
in the following classifications : animators, assistant animators, car-
toon photographers, story and music department employees, tracers
and opaquers; the working hours of tracers and opaquers shall be
limited to forty-four (44) hours in any one week, subject to the
exceptions made herein in cases of emergency.
(e) With respect to those classes of employees specified within
subdivision (2) of the foregoing subdivision (d) of this Section 1:
(1) such employees employed on an hourly basis or on a daily
basis with overtime compensation shall at the conclusion of any
single production be given a full day off without pay for each six
(6) hours of work in excess of a thirty-six (36) hour weekly average
during the production. Emplo3'ees employed on a weekly basis,
whether by agreement in writing or otherwise, shall not be deemed
to be within the purview of this subsection (1).
(2) Art directors, assistant directors, company wardrobe men,
women and assistants, costume designers, draftsmen, make-up artsists,
hair dressers, optical experts, process projectionists, script clerks,
and wardrobe fitters receiving seventy dollars ($70.00) or less per
week without overtime compensation, at the conclusion of any single
production shall be laid off one full day. without pay, for each si2f
226
(6) hours of work in excess of a thirty-six (36) hour weekly average
during the production period, but for each six (6) hours or fraction
thereof which each such employee has worked in excess of a fifty-
four (54) hour weeky average during said production such employee
shall receive one full day's pay. No such employee shall be per-
mitted to work in another studio during tlie time of such lay-off.
Sec. 2. Minhnuvi irages. — (a) No employee of any class shall be
paid less than forty (40) cents per hour.
(b) The following clerical, office, and service employees shall be
paid not less than fifty (50) cents per hours:
Accountants, accounting machine operators, bookkeepers, clerks,
file clerks, firemen, garage clerks, readers, secretaries, stenographers,
telephone and telegraph operators, timekeepers, typists.
(c) No employee of the following classes of studio mechanics shall
be paid less per hour than the rates specified for each class :
Artists and Sculptors $1. 94
Automotive Mechanics 1. 00
Blacksmiths 1.16%
Carpenters 1. 16%
Casters and Mouldmakers (staff) 1.16%
Cement Finishers 1. 16%
Construction Foremen (carpenter) 1.33%
Electrical Foremen 1. 33%
Electrical Workers 1. 16%
Floormen (electric) 1. 00
Foundrymen 1. 16%
Gaffers 1.16%
Grips 1.00
Laborers . 60
Lamp Operators 1. 00
Machinists 1.16%
Marbleizers, Grainers and Fur Finishers 1. 40
Modelers (staff) 1. 94
Modelmakors (staff) 1. 25
Moulders (metal) 1. 16%
Operating Engineers 1. 16%
Ornamental Iron Workers 1. 16%
Painters 1. 16%
Pattern Makers 1. 16%
Plasterers 1.25
Plumbers 1. 16%
Projectionists 1. 25
Propertymen (first) 1. 00
Propertymen (second) • 90
Scenic Artists 2. 25
Set Drapers 1. 00
Sheetnietal Workers 1. 16%
Sign Writers 1. 66%
Sprinkler Fitters : 1. 16%
Steam Fitters 1. 16%
Structural Steel Workers 1. 16%
Swing Gang (property) .75
Upholsterers 1- 10
Weldlers 1.16%
When any of the above studio mechanics works more than six (6)
hours per day on: (1) emergency or maintenance or repair work, or
(2) to avoid hindering, reducing or delaying production, he shall be
compenisated at not less than time and one-half for all overtime in
excess of six (6) hours.
(d) No employees of the following classes shall be paid less per
hour than the rates specified for each class :
227
Assistant Cutters $1- JO
Chauffeurs and Truck Drivers • ^-Wa
Laboratory Workers of tlie following classifications:
Chemical Mixers • J^
Negative Assemblers and Breaker-downs • 81
Negative Developers' Assistants • SI
Negative Notchers • J/^
Negative Splicers • ^^
Positive Daily Assemblers • ^^
Positive Developers' Assistants • '|
Positive Release Splicers • «;*
Printers -81
Processing and Negative Polishers • ^^
Release Inspectors • ^^
Rewinders • ^|
Sensitometry Assistants • o}
Shift Boss Printers • ^^
Vault Clerks • °l
Film Loaders • ^^ /a
When any of the above employees work more than thirty-six (36)
hours in any one week on: (1)' emergency or maintenance or repair
work; or (2) to avoid hindering, reducing, or delaying production,
he shall be compensated at straight time for all overtime in excess
of thirty-six (36) cumulative hours.
(e) With respect to the following classifications there may be
substituted a weekly wage in lieu of an hourly wage :
Construction Foremen (carpenter) ^Zp 15
Electrical Foreman 'o- ^•^
Gaffer «S.o)
Floormen (electric) ^^- ^"^
Qj.j^pg oO. 00
Propertymen (first) GO. 00
However, for " stand-by " or " key men ", not more than one man
of each of the above classifications shall be assigned to any one pro-
ducing unit. ,. , 1 . T / X 1
(f) With respect to all employees listed m paragraphs (c) and
(d) of this Section, the foregoing scale of minimum wages shall
prevail on all locations except that the following wage scale may be
paid in lieu thereof on distant location, if so stipulated before
employment commences and all such employees' expenses are paid :
Distant locations when employed less than one week of seven
(7) days and subject to '' call at any time " :
Distant
studio,
location,
Distant
hourly rate
daily rate
location,
when less
weekly rate
than 1 week
$2.25
$27. 25
$161. 75
1.94
24.00
141.75
1. 66?4
20.75
121.75
1.40
17.25
101.75
1.33^i
15.75
91.75
1.25
14.75
86.75
1. WH
13.75
81. 75
1.10
13.25
78.00
1.00
12.25
71.75
.90
11.50
66.75
.S3'/3
8.50
51.75
.75
8.00
46.75
.60
6.50
37.75
228
When the distant location daily rate above is employed, the total
wage for anj^ one week shall not exceed the distant location weekly
wage.
(g) Every news-reel cameraman or soundman shall be given one
da}^ off with pay for every four (4) cumulative days (24 hours per
day) that he is aAvay from his base of operations, except if on roving
or " gypsy " assignments.
Sec. 3. Provisions Regarding " Extras.'' — 1. The Code Authority
provided for in this Code shall undertake and provide for rules and
regulations to be adopted by all casting agencies and/or Producers
with respect to '' extras "', and shall appoint a standing committee
representative of emploj'ers, " extra players '', and the public, to
effectuate the foregoing purposes and to interpret the terms of any
provisions made for " extras " and to supervise the same, receive and
pass on complaints and grievances, and to otherwise aid in effectu-
ating the foregoing provisions, subject to review b}' the Administrator.
2. Such standing committee under- the supervision of the Code
Authority shall cause a reclassification of " extras " and " extra
talent '" to be undertaken, based upon the following qualifications for
such labor :
(a) '■ Extra players " shall be those who by experience and/or
ability are known to be competent to play group and individual
business parts and to otherwise appear in a motion picture in other
than atmospheric background or crowd work.
(b) Atmosphere people who are not to be classified as dependent
on motion pictures for a livelihood, but who may be recorded, listed,
and called upon for occasional special qualifications not possible of
being filled from the registered Extra Players,
(c) Crowds not classified, including racial groups, location crowds
where transj)ortation is unpractical and crowd assemblies of a public
nature.
3. The minimum paj^ for the foregoing classifications shall be as
follows :
(a) "Extra players", $7.50 per day, with this minimum graded
upward according to the character and importance of the perform-
ance and the personal wardrobe required, the minimum for Class
A " dress " people to be $15.00 per day ; provided that, if any " extra
player " emploj^ed as such is required to play a part or bit with
essential stor}^ dialogue, such " extra player " shall not be deemed
to be an " extra player " and shall become a " bit player ", and his
compensation shall be fixed by agreement between such player and
the Producer before the part or bit is undertaken, but the minimum
compensation to such " bit plaj^er '' shall not be less than twenty-five
dollars ($25.00).
(b) Atmosphere people, $5.00 per day; provided that any "extra
player " may accept atmosphere work without losing or jeopardizing
his registration as an " extra player."
(c) Crowds, $5.00 per day, provided that this minimum shall not
prevent the emploA^ment of large groups under special circumstances
at a rate lower than the minimum.
(d) Transportation to and from location shall be paid to " extra
players." There shall also be paid to " extra players " for inter-
229
views and fittinfys the payments provided for in Order 16-A of
the Industrial Welfare Commission of the State of California ; except
that in the event that any interview extends be3"ond one and one
half hours, the " extra plaj-er ", although not engaged, shall receive
not less than one fourth of a day's pay, and if any interview shall
extend beyond two hours, the " extra player " shall receive an addi-
tional one fourth of a day's pay for every additional two hours or
fraction thereof.
4. The following shall be provided for by said standing committee
among the working conditions to be regulated as above provided :
(a) In Casting Bureaus casting and employment interviews of
women and children shall be by women casting officials, and men by
men.
(b) No one shall be employed as an " extra player " or " atmos-
phere worker " who is a dependent member of the immediate family
of any regular employee of a motion-picture company, or any person
who is not obliged to depend upon extra work as a means of liveli-
hood, unless the exigencies of production reasonably construed,
require an exception to be made. And further, no one shall be em-
plo5^ed as an " extra player " or " atmosphere worker " on account
of personal favoritism.
(c) A day's work in any State shall be eight (8) hours, with over-
time as provided by the existing California Statutes relating thereto.
(d) No person coming under the above classification (excepting
crowds) shall be permitted to work in more than one picture for the
same day's pay, including overtime.
(e) Rotation of work shall be established to such reasonable de-
gree as may be possible and practicable.
(f ) No person not a registered " extra player " shall be requested
by a studio casting office from any casting agency, and each regis-
tered " extra player " shall be provided with a card of identification ;
suitable regulations for carrying out this provision shall be adopted.
Sec. 4. Provisions Regarding " Free Lance " Players^ — The Code
Authority provided for in this Code shall undertake and provide
for rules and regulations to be binding upon all Producers with
respect to " free lance " players receiving compensation of one hun-
dred and fifty dollars ($150,00) or less per week, and shall appoint
a standing committee representative of employers, " free lance "
players, and the public, to effectuate the foregoing purposes and to
interpret the terms of any provisions made for " free lance " players
and to supervise the same, receive and pass on complaints and griev-
ances, and to otherwise aid in effectuating the foregoing provisions
subject to review by the Administrator.
Such standing committee, under the supervision of the Code
Authority, shall make full investigation with respect to the workino-
conditions of such " free lance " players and shall undertake and
provide for by the rules and regulations hereinabove provided for
with respect to hours of employment for such " free lance " players,
rotation and distribution of work to such reasonable degree as may
be possible and practicable, and minimum adequate compensation
therefor.
Sec. 5. Overriding provisions. — If the prevailing wage scale and
maximum number of hours per week as of August 23, 1933, as fixed
23773° 24i-92 33 3
230
in any agreement or as enforced between the employers and associa-
tions of any such employees, however, shall be at a rate exceeding the
minimum wage scale provided for or less than the number of hours
per week herein provided for with respect to any of such employees,
such scales and hours of labor in the localities where same were en-
forced shall be deemed to be, and hereby are declared to be, the mini-
mum scale of wages and maximum number of hours with respect to
these aforementioned employees in such localities under this Section
of the Code.
Seo. 6. Child lahor. — On and after the effective date of this Code,
no person under sixteen (16) years of age shall be employed in the
production of motion pictures, provided, however, where a State
law provides a higher minimum age, no person under the age speci-
fied Dy said State shall be employed in that State, and provided
further, however, where a role or roles are to be filled or appearances
made by a child or children, a Producer may utilize the services of
such child or children upon his compliance with the provisions of
State laws appertaining thereto.
B. On and after the effective date of this Code, in the Distribution
of Motion Pictures:
Section 1. Hours of Employment. — (a) No employee except out-
side salesmen shall work more than forty (40) hours in any one week.
(b) This provision for working hours shall not apply to profes-
sional persons employed in their profession nor to employees in a
managerial or an executive capacity or in any other capacity of dis-
tinction or sole responsibility who now receive more than $35.00 per
week; nor to employees on emergency or maintenance and repair
work.
Sec. 2. Minimum Wages. — No employee shall be paid :
(a) Less than fifteen dollars ($15.00) per week in any city over
600,000 population or in the immediate trade area of such city.
(b) Less than fourteen dollars and fifty cents ($14.50) per week in
any city between 250,000 and 500,000 population or in the immediate
trade area of such city.
(c) Less than fourteen dollars ($14.00) per week in any city or
place up to 250,000 population or in the immediate trade area of such
city or place.
Sec. 3. On or after the effective date no person under sixteen (16)
years of age shall be employed in the distribution of motion pictures,
provided, however, 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.
C. On and after the effective date of this Code, in the Exhibition
of Motion Pictures :
Part 1. Employees Other than Actors.
Section 1. No person under sixteen (16) years of age shall be
employed; 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 in that State.
Sec. 2. No employee, notwithstanding the provisions of Section 6
(a) hereof, shall work more than forty (40) hours in one week,
except that such maximum hours shall not apply to employees in
a manager] aj. executive, or advisory capacity who now receive tliirty-
231
five ($35.00) or more per week, or to employees whose duties are of
general utilitarian character, or to emergencies.
Sec. 3. With respect to employees regularly employed as ticket-
sellers, doormen, ushers, cleaners, matrons, watchmen, attendants,
porters, and oiRce help, such employees shall receive not less than a
twenty percent (20%) increase over the wage paid to them as of
August 1, 1933, in cities and places having a population of less than
15,000, provided that this shall not require a wage for these employees
in excess of twenty-five (25) cents per hour.
Sec. 4. With respect to employees regularly emploj^ed as ticket-
sellers, doormen, cleaners, matrons, watchmen, attendants, porters,
and office help, such employees shall receive not less than thirty (30)
cents per hour in cities and places having a population of more than
15,000 and less than 500,000, and not less than thirty-five (35) cents
per hour in cities and towns having a population of more than
600,000.
Sec. 5. With respect to employees regularly employed as ushers, in
cities and places having a population over 15,000, such emploj^eea
shall receive a wage of not less than twenty-five (25) cents per hour.
Sec. 6. (a) Employees associated with organizations of or per-
forming the duties of bill-posters, carpenters, electrical workers,
engineers, firemen, motion-picture machine operators, oilers, painters,
theatrical stage employees, theatrical wardrobe attendants, or other
skilled mechanics and artisans, who are directly and regularly em-
ployed by the Exhibitors, shall receive not less than the minimum
wage and work no longer than the maximum number of hours per
week which were in force as of August 23, 1933, ae the prevailing
scale of wages and maximum number of hours of labor by organiza-
tions of any of such employees affiliated with the American Federa-
tion of Labor with respect to their respective type of work in a
particular class of theatre or theatres in a particular location in a
particular communitj'^, and such scales and hours of labor with respect
to any of such employees in such community shall be deemed to be,
and hereby are declared to be, the minimum scale of wages and
maximum number of hours with respect to all of such employees in
such communities in such class of theatre or theatres.
(b) In the event, however, that there exist in the particular com-
munity organizations of such employees above mentioned, mem-
bers of which were directly and regularly employed by the Exhibitor
or Exhibitors on August 23, 1933, and which organizations are
affiliated as above set forth, and (1) no prevailing scale of wages
and maximum number of hours for such employees exist in such
community with repect to such employees, or (2) any dispute should
arise as to what is a minimum scale of wages or the maximum
number of hours of labor with respect to any of such employees for
a particular class of theater or theaters in any particular community
then and in either of those events such disputes shall be determined
as follows :
(1) If the question at issue arises with an organization of such
employees affiliated with the American Federation of Labor, then
a representative appointed by the National President of such affili-
ated organization, together with a representative appointed by the
Exhibitors, shall examine into the facts and determine the existing
232
minimum scale of wages and maximum number of hours of labor
for such class of theater or theaters in such particular locality, and
in the event they cannot agree upon the same, they shall mutually
designate an impartial third person who shall be empowered to
sit with such representatives, review the facts and finally determine
such dispute, with the proviso, however, that in the event such repre-
sentatives cannot mutually agree upon such third person, then the
Administrator shall designate such third person; or •
(2) If the question at issue arises with unorganized employees or
with an organization of such employees not affiliated with the Ameri-
can Federation of Labor, and if in said community there exist mem-
bers of such affiliated organization directly and regularly employed
by an Exhibitor or Exhibitors, then a representative of such unor-
ganized employees, or, as the case may be, a representative appointed
by the President of such unaffiliated organization or both, together
with a representative appointed by the National President of such
affiliated organization above referred to, together with a representa-
tive appointed by the Exhibitors, shall examine into the facts and
unanimously determine the existing scale of wages and maximum
number of hours of labor for such class of theatre or theatres in
such particular community, and in the event they cannot unani-
mously agree upon the same, they shall mutually designate an im-
partial person who shall be empowered to sit with such representa-
tives, review the facts, and finally determine such dispute, with the
proviso, however, that in the event such representatives cannot mu-
tually agree upon such impartial person, then the Administrator
shall designate such impartial person; or
(3) If the c|uestion at issue arises with unorganized employees or
with an organization of such employees not affiliated with the Amer-
ican Federation of Labor and not subject to the foregoing provisions
of subparagraphs (1) and (2) of paragraph (b) hereof, then a rep-
resentative of such unorganized employees, or, as the case may be,
a representative of the President of such unaffiliated organization, or
both together, with a representative appointed by the Exhibitors,
shall examine into the facts and determine the existing minimum
scale of wages and maximum hours of labor, for such class of theatre
or theatres in such particular locality, and in the event they can-
not agree upon the same, they shall mutually designate an impartial
person who shall be empowered to sit with such representatives, re-
view the facts and finally determine such dispute, with the proviso,
however, that in the event such representatives cannot mutually agree
upon such impartial person, then the Administrator shall designate
such impartial person.
(c) Pending the determination of any such dispute, the rate of
wages then paid by the Exhibitor in such theatre or theatres in such
community, and the maximum number of hours then in force (if
not more than the hours provided for in this Code) shall not be
changed so as to decrease wages or increase hours.
(d) In order to effectuate the foregoing provisions of this Sec-
tion 6 hereof, and pending the determination of any dispute as above
specified, the employees herein embraced and provided for agree that
they shall not strike, and the Exhibitors agree that they shall not
lock out such employees.
233
Seo. 7. In no event shall the duties of any of the employees here-
inabove specified in Section 6 (a) directly and regularly employed
by the Exhibitors as of August 23, 1933, be increased so as to de-
crease the number of such employees employed in any theatre or
theatres in any community, except by mutual consent.
Sec. 8. With respect to any employee not hereinbefore provided
for, such employee when directly and regularly employed by the
Exhibitors shall be paid not less than forty (40) cents per hour.
Sec. 9. By reason of the professional character of their employ-
ment, the minimum wage and maximum hours of employment of
employees performing the duties of musicians shall as heretofore
be established by prevailing labor agreements, understandings, or
practices.
Sec. 10. With respect to disputes arising between employees and
employers in the Exhibition branch of the Motion Picture Industry,
the parties pledge themselves to attempt to arbitrate all such
disputes.
Sec. 11. The Administrator after such notice and hearing as he
shall prescribe may revise or modify any determination of any dis-
pute pursuant to Section 6 of Part 1 of Division C of this Article IV.
Part 2. Actor Employees hi Vaudeville and Presentation Motion-
Picture Theatres.
Section 1. Definitions. — (a) Presentation and vaudeville shall in-
clude both permanent and traveling companies of artists playing
presentation and vaudeville houses, but is not intended to include :
amateur shows, " rep " shows, " tab " shows, " tent " shows, " wagon "
shows, " truck " shows, " medicine " shows, " show-boat " or " bur-
lesque ", as these terms are understood in the theatre.
(b) A " traveling " company, as used in this Code, means a com-
pany which moves from theatre to theatre irrespective of locality.
Sec. 2. Auditions — (a) Principals. — It shall be an unfair trade
practice for any Exhibitor or independent contractor under the guise
of public audition to break in, try out, or to require a performer to
render service for less than the minimum salary established by this
Code. This shall not prohibit, however, the appearance or participa-
tion of any performer in benefit performances which have been
approved by the performer or by any bona fide organization of the
performer's own choosing.
(b) Chonis. — It shall be an unfair trade practice for any manager
or independent contractor, under the guise of a public audition,
break-in, or try-out, to require the chorus to render services for less
than the minimum salary established by this Code. This shall not
prohibit, however, the appearance of the chorus or participation in
benefit performances which have been approved by the chorus or
any bona fide organization of the chorus' own choosing.
Sec. 3. Rehearsals — (a) Principals. — Eehearsal period for prin-
cipals shall be limited to four weeks, and they shall be guaranteed
two consecutive weeks' compensation for emplojnnent for said four
weeks of rehearsals, which shall immediately follow the rehearsal
period. In the event that any rehearsal over four weeks is required,
there shall be compensation for an additional consecutive week's
playing time guaranteed for each week's rehearsal. This shall not
apply, however, to principals owning their own acts.
234
(b) Choirs. — No exhibitor or independent contractor shall require
for an engagement of only one week any chorus person to rehearse
in excess of five (5) days, nor for an engagement of two or more
weeks to rehearse in excess of two (2) weeks. Any such engage-
ment shall follow immediately such respective rehearsal periods. The
chorus shall not be required to rehearse for more than forty (40)
hours a week and rehearsal shall be considered to be continuous
from the time the chorus is called on the first day of rehearsal until
the opening day. For each additional week of rehearsal there shall
be compensation for an additional week's consecutive employment.
Sec. 4. Maximum. Hours and Minimum Wages — (a) Principals. —
Owing to the peculiar nature of the stage presentation and vaudeville
business and the unique conditions prevailing therein, the necessary
policy and variations in the operation of such theatres, the changing
nature of the entertainment, and the fact that such entertainment is
of a character requiring the services of artists of unique and distinc-
tive ability who cannot be replaced, it is recognized that it is im-
possible to fix the maximum hours per week of artists appearing in
Buch theatres.
(1) For performers with more than two years' theatrical expe-
rience, there shall be a minimum wage of forty dollars ($40.00)
weeklj'- net.
(2-) For performers with less than two years' theatrical experience,
there shall be a minimum wage of twenty-five dollars ($25.00) weekly
net.
(8) The minimum wage of performers employed on a per diem
basis shall be seven dollars and fifty cents ($7.60) per day net.
(b) OKonis. — No singing or dancing chorus person shall be re-
quired to work more than forty (40) hours in any week, and there
snail be one day out of every seven during which tlie chorus shall
be relea,sed from work with pay. Working time shall include the
entire time of a performance or presentation in which the chorus
appears in one or more numbers as an integral part of the presenta-
tion, and all rehearsal time excluding dressing and undressing time.
No chorus person shall be required to report at a theatre before
9 o'clock in the morning.
On the day a chorus person is released with pay, such chorus person
shall not be required to rehearse or report to the theatre or perform
any service. This provision for a free day shall not apply to travel-
ing companies.
(1) There shall be a minimum wage of thirty dollars ($30.00)
per week in an^- De Luxe Theatre.
(2) There shall be a minimum wage of thirty-five dollars ($35.00)
per weelc in traveling companies.
(8) There shall be a minimum wage of twenty-five dollars ($25.00)
per week in other than De Luxe Theatres.
(4) Wherever a theater augments the chorus by employing addi-
tional chorus persons, such additional chorus persons shall not re-
hearse more than five (5) days.
(5) It shall be an unfair trade practice for any Exhibitor or
independent contractor to engage any chorus person under any
agreement which would reduce the net salary below the minimum
wage through the payment of any fee or commission to any agency
235
(whether such fee is paid by the Exhibitor or independent con-
tractor or by the chorus), or by any other form of deduction.
(6) After the first two weeks of consecutive emplo}anent, if a
lay-off is necessary, the Exhibitor or independent contractor shall
pay each chorus person not less than three dollars ($3.00) per day
tor each day of lay-off. In connection with a traveling unit after
the first two weeks of consecutive employment, if lay-off is caused
on account of traveling, the Exhibitor or independent contractor
shall be allowed two days' traveling without pay for each four
weeks of employment West of the Rockies, and one day's traveling
without pay for each four weeks of emploj^nent East of the Rockies.
(7) Wherever on August 23, 1933, any theatre paid a rate to
chorus persons in excess of the minimum wages or employed chorus
persons for a number of hours per week of labor less than the
maximum hours, said higher wage and lesser number of hours shall
be deemed to be, and are hereby declared to be, the minimum scale
of wages and maximum hours of labor with respect to such theatres
in this Section of the Code.
Seo. 5. General Provisions. — (a) If in any city or place where by
custom Sunday performances by living actors, or the performance
of particular classes of acts, are not given, no performer or chorus
person engaged to work in such city or place shall be required to
perform or give performances of such particular class of act in such
city or in any other place on the Sunday of the week for which such
performer or chorus person was engaged to render services in such
city or place.
(b) Wherever any unit, traveling company or artist is required
to give more than the regular number of performances established in
the theatres in which they appear, said unit, traveling company or
artist, all artists and chorus persons shall be paid tor said extra
performances pro rata.
Sec. 6. Chorus Transportation. — (a) Transportation of the chorus
when required to travel, including transportation from point of
organization and back, including sleepers, shall be paid by the em-
ployer whether Exhibitor or independent contractor.
(b) If individual notice of contract termination is given, the
chorus shall only be paid in cash the amount of the cost of trans-
portation and sleeper of the chorus and baggage back to the point of
origin whether the chorus returns immediately or not.
Sec. 7. Wardrohe — (a) Principals. — The Exhibitor or independent
contractor shall furnish to every artist in a presentation unit or
traveling company (not including what is commonly known as a
vaudeville act) and receiving less than fifty dollars ($50.00) per
week, without charge, all hats, costumes, wigs, shoes, tights, and
stockings, and other necessary stage wardrobe, excepting street
clothes.
(b) Chorus. — The Exhibitor or independent contractor shall fur-
nish the chorus, without charge, with all hats, costumes, wigs, shoes,
tights, and stockings and other necessary stage wardrobe.
Sec. 8. Arhitration. — (a) Arbitration of all disputes under this
Section of this ARTICLE of the Code shall be in accordance with
the arbitration provisions of this Code as hereinafter generally pro-
vided.
236
Sec. 9. Child Labor.— {^) On or after the effective date of this
Code, no person under sixteen (16) years of age shall be employed
as a principal or chorus person in connection with the EXHIBITION
of motion pictures, provided, however, where a State law provides
a higher minimum age, no person under the age specified by said
State law shall be employed in that State, and provided further,
however, where a role or roles are to be filled or appearances made
by a child or children, an Exhibitor or independent contractor
may utilize the services of such child or children upon his compliance
with the provisions of State laws appertaining thereto.
Sec. 10. The Code Authority may receive complaints with respect
to alleged violations by an independent contractor of any of the
foregoing Sections of this PART 2 and may after notice and hear-
ing and with the approval of the Administrator prescribe rules and
regulations governing the relations between Exhibitors and inde-
pendent contractors guilty of any such violations.
Article V — Unfair Practices
A. GENERAL
Part 1. The defamation of competitors by falsely imputing to
them dishonorable conduct, inability to perform contracts, question-
able credit standing, or by other false representations or by the
false disparagement of the grade or quality of their motion pictures
or theatres, shall be deemed to be an unfair trade practice'.
Part 2. The publishing or circularizing of threats or suits or any
other legal proceedings not in good faith, with the tendency or effect
of harrassing competitors or intimidating their customers, shall be
deemed to be an unfair trade practice.
Part 3. 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, shall be deemed to be an unfair trade practice.
Part Jf. To avoid the payment of sums unreasonably in excess of
the fair value of personal services which results in unfair and
destructive competition, the Code Authority shall have power, with
the approval of the Administrator, to investigate whether in any
case any employer in the motion-picture industry has agreed to pay
an unreasonably excessive inducement to any person to enter into the
employ of such employer. If the Code Authority finds that such
employer has done so, the Code Authority shall have the power, with
the approval of the Administrator, to impose an assessment against
such employer in the amount of the unreasonable excess pajanent
to such person, not, however, to exceed the sum of Ten Thousand
Dollars ($10,000.00), and to make public its findings, but nothing
in this PART shall in any manner impair the validity or enforce-
ability of such agreement of employment. All such assessments shall
be paid to the Code Authority for use by it in the Administration of
its functions.
B. PRODUCERS
Part 1. It shall be an unfair trade practice for any Producer to
aid, abet, or assist in the voluntary release or dismissal of any author,
237
dramatist, or actor employed in rendering his exclusive services in
connection with the production of a '' legitimate " drama or musical
comedy for the purposes of securing the services of such author,
dramatist, or actor.
Part 2. It shall be an unfair trade practice for a number ot
Producers who, in the usual and ordinary course of business, rent
their respective studios or studio facilities to Producers (other than
their affiliated companies), to conspire, agree, or take joint action
to prevent any responsible Producer or Producers from renting such
studios or studio facilities. -r^ n .
Part 3. It shall be an unfair trade practice for a Producer to
knowingly employ as an " extra " any member of the immediate
family of any emiDloyee or any person who is not obliged to depend
upon '" extra*" work as a means of livelihood, unless the exigencies
of production require an exception to be made.
Part k- Section 1. No Producer, directly or indirectly, shall trans-
act any business relating to the production of motion pictures with
any agent who under the procedure hereinafter set forth shall be
found by the Agency Committee :
(a) to have given, offered, or promised to any employee of any
Producer any gift or gratuity to influence the action of such em-
ployee in relation to the business of such Producer ;
("b) to have alienated or enticed, or to have attempted to alienate
or entice, any employee under written contract of employment, from
such employment, or to have induced or advised without justification
any employee to do any act or thing in conflict with such employee's
obligation to perform in good faith any contract of employment,
whether oral cr written ;
(c) knowingly to have made any materially false representation
to anv Producer in negotiations with such Producer for or affecting
the employment or contemplated employment of any person rep-
resented by such agent ;
(d) to have violatecl or evaded or to have attempted to violate
or evade, directly or indirectly, any of the provisions of Parts 4 or
5 of this Article V.
(e) to have failed or refused to have registered as an agent, in
the event that such registration is required as provided for in Sec-
tion 3 of this Part, or to have transacted business as an agent after
his registration shall have been revoked, cancelled, or suspended.
Sec. 2. The Agency Committee shall consist of ten (10) members,
five (5) of whom shall be Producers or Producers' representatives
named by the Code Authority, and the other five (5) shall consist
of one agent, one actor, one writer, one director, and one technician,
who shall be selected by the Administrator from nominations as to
each class named, respectively, by agents, actors, writers, directors,
and technicians, in such equitable manner as may be prescribed by
the Administrator.
Sec. 3. In order to elFectuate this Part, the Agency Committee may
recommend to the Administrator uniform terms and conditions for
and an appropriate procedure for the registration of all agents with
whom Producers may transact business relating to the production of
motion pictures, and for the suspension, revocation, or cancellation of
any such registration and apin-opriate rules and regulations affecting
the agents as provided for herein. Such recommendations of the
238
Agency Committee, together with the recommendations of the indi-
vidual members thereof, shall be submitted in writing to the Admin-
istrator, who after such notice and hearing as he may prescribe, may
approve or modify such recommendations. Upon approval by the
Administrator, such recommendations shall have full force and effect
as provisions of this Code, No agent shall be deprived of the right
of registration without affording such agent a full and fair oppor-
tunity to be heard, and without the approval of the Administrator.
Should it at any time be determined to provide for the registration
of agents as hereinabove set forth, then all persons regularly trans-
acting business as agents at such time shall be entitled to registration
as a matter of course, provided application is made to the Agency
Committee within thirty (30) days thereafter.
Sec. 4. The Agency Committee may, after due notice and hearing,
and with the approval of the Administrator, set up rules of fair
practice governing relations between Producers and agents, writers,
actors, directors, and technicians.
Sec. 5. The Agency Committee shall make findings of fact concern-
ing any matter coming before it pursuant to the provisions of this
Part and shall make such recommendations to the Administrator as it
may deem proper if the Committee is unanimous, otherwise separate
recommendations may be submitted, together with a report that the
Committee has disagreed. No hearing or proceeding shall be con-
ducted without due notice and a full and fair opportunity to all
interested parties to appear and be heard. A complete transcript of
all testimony and arguments shall be made and certified to the Ad-
ministrator, together with the recommendations of the members of
the Committee. The Administrator shall approve, reject, or modify
such recommendations, or any of them, and may conduct such fur-
ther investigations and hearings as to him may seem necessary or
advisable. The order of the Administrator shall be final.
Sec. 6. The Agency Committee, subject to the approval of the
Administrator, shall have authority to require all Producers to fur-
nish such information as may be desired to effectuate the jDrovisions
of this Part.
Sec. 7. The Agency Committee shall have full power and authority
to prescribe reasonable rules of procedure for determining all matters
of dispute or controversy which may properly arise before such
Committee in connection with this Part.
Sec. 8. The term " agent " as used herein shall apply to any per-
son (including firms, corporations, or associations) who, directly or
indirectly, for a fee or other valuable consideration, procures, prom-
ises, or undertakes to procure employment for any person for or in
connection with the production of motion pictures.
Sec. 9. The provisions of Article II, Section 7, of this Code shall
not supersede the operation of this Part 4, and the following Part
4 (A).
Sec. 10. It shall be an unfair trade practice for any Producer, or
any employee of a Producer, directly or indirectly, to engage in,
carry on, or in any way be financially interested in or connected with
the business of an agent as herein defined, without making known
such fact to the Agency Committee within twenty (20) days from
the effective date, or if such interest is acquired subsequent to the
239
effective date, then within ten (10) days after the acquisition of such
interest. The Agency Committee shall require such public disclosure
to be made of such interest as it may deem advisable; and the Agency
Committee may make such furthec rules in connection with the sub-
ject matter of this Section as it sees fit, subject to the approval of
the Administrator.
Part Jf. (zL).— (a) Should the Administrator determine at Any
time upon a fair showing^ after notice, that a set of fair practices
should be adopted governing relations between Producers and any
one of the following classes: writers, directors, technicians, actors,
and agents, a special committee shall be appointed for that purpose.
The Producers and the class interested in such fair practices in each
instance shall be entitled to equal representation on such committee.
(b) The Committee members shall be appointed in the manner,
and its proceedings and those of the Administrator shall be the same,
as above provided in the case of the Agency Committee.
(c) At the same time that the findings or report of the Committee
shall be sent to the Administrator, the same shall be made public
in such manner as may be determined by the Administrator.
Part 5. Section 1. No Producer, directly or indirectly, secretly or
otherwise, shall —
(a) Entice or alienate from his employment any employee of any
other Producer or induce or advise any such employee to do any-
thing in conflict or inconsistent with such employee's obligation to
perform in good faith any contract of employment.
(b) Foment dissension, discord, or strife between any employee of
any other Producer and his employer with the effect _ of securing
the employee's release from employment or a change in the terms
of any contract under which the employee is engaged or of causing
the employee to be or become dissatisfied with his subsisting contract.
(c) In any manner whatsoever negotiate with or make any offer
for or to any employee under written contract to any other Producer
prior to the last thirty (30) days of the term of the contract of
employment, regardless oi the compensation.
Seo. 2. Ail production employees rendering services of an artistic,
creative, technical, or executive nature, for the purpose of this Part,
shall be classified as follows :
(a) Employees not under written contract who are employed at
not less than $250.00 per week or $2,500.00 per picture.
(b) Employees under written contract, for a period, inclusive of
options, if any, of less than one year, whose compensation is not less
than $2-"0.00 per week or $2,500.00 per picture
(c) Employees under written contract for the period of at least
one year, or at least three pictures, inclusive of options, if any.
whose compensation is not less than $250.00 per week (exclusive oi
lay-off periods) or $2,500.00 per picture.
The term "contract" as used m subdivisions (b) and (c) shall
be deemed to mean and include not only any subsisting contract
with any Producer, but also any prior contract with such Producer
or with any parent, subsidiary, or predecessor corporation of such
Producer, provided that the employment thereunder has been or
may be continuous.
240
(d) Nothing hereinbefore in subdivision (c) of Section 1 or in
subdivisions (a), (b), and (c) of this Section contained shall apply
to so-called " free lance " players, writers, directors, or other em-
ployees who are engaged to render services of an artistic nature in
connection with one or two pictures only, unless the actual period of
employment of any such employee is intended to or shall cover a
minimum period of one j^ear.
Sec. 3. Should any Producer make any oifer for the services of
any employee of any other Producer, and such employee is classified,
within either subdivision (a), (b), (c) or (d) of Section 2, and regis-
tered as hereinafter in Section 6 provided, then on the sajne day
such offer is made, the Producer making such offer shall notify the
employing Producer in writing that such offer has been made, and
shall state the full and complete terms and conditions thereof, in-
cluding particularly the compensation, the proposed period of em-
ployment, and any additional special terms. Simultaneously, a
copy of said notice shall be delivered to the Registrar hereinafter
provided for. The employing Producer thereupon shall be afforded
a reasonable opportunity, not exceeding three (3) days, to be deter-
mined by the Registrar as hereinafter in Section 6 provided, within
which time to negotiate for and contract with such employee for his
continued services, on such terms as may be mutually acceptable, but
the employee in every instance shall have the full and independent
choice as to which offer he will accept. Any offer made by any Pro-
ducer and reported to- the employing Producer shall be conditional
upon the right of the employing Producer as hereinabove provided,
and shall be a firm offer not to expire until at least twenty-four (24)
hours after the period permitted the employing Producer to nego-
tiate as herein provided for.
The notice hereinabove provided for need be given, however, with
reference to employees classified in subdivisions (b) and (c) of Sec-
tion 2, only upon the condition that prior to the last thirty (30)
day period of employment the employing Producer shall have made
an offer in good faith to such employee for a renewal or extension of
his contract of employment and shall have communicated that fact
to the Registrar.
Sec. 4. Should any Producer desire to continue, renew, or extend
the period of employment of any employee classified within sub-
division (c) of Section 2 hereof, and if he shall have evidenced such
desire by making an offer in good faith to such employee prior to the
last thirty (30) day period of his employment and such offer be
rejected, and provided the compensation of such employee last paid
by the employing Producer was at least $500.00 per week or $5,000.00
per picture, such Producer nevertheless shall be entitled to notice of
offers which may be made to such employee by other Producers,
during the period hereinafter provided, following the termination of
such employment. Should any other Producer make any offer for
the services of any such employee within such period, then on the
same day that such offer is made such Producer shall notify the
former employing Producer and the Registrar in like manner as is
provided for in Section 3. The same procedure, rules, and condi-
tions shall govern with reference to offers made under this Section as
are provided for in Section 3, to the end that :
241
(a) the former employing Producer shall be entitled to a reason-
able period not exceeding three (3) days within which to negotiate
and contract for the services of the employee in question ;
(b) the offer of the second Producer shall continue as a firm offer
for twenty-four (24) hours beyond the period referred to in
subdivision (a) ; and
(c) the employee at all times shall have a free and independent
choice as to which offer he will accept. , n u
The period during which the first employing Producer shall be
entitled to notice of offers made by other Producers, as hereinabove
provided for, shall be three (3) months from the date of termina-
tion of the first employment in all cases where the compensation
for the employee in connection with the former employment was at
the rate of less than $1,000 per week (exclusive of lay-off periods),
or if the employee was employed on a picture basis, less than $10,000
per picture. In all other cases where the compensation was equal to
or in excess of the above amounts, the period shall be six (6)
months. „,.,.. , „ . , ,
Sec. 5. No Producer, Distributor, or Exhibitor shall violate or
aid or abet in the violation of this Part. It shall be an unfair trade
practice for any Producer to use coercion to prevent offers being
made any employee by other Producers.
Sec. 6. The Code Authority shall appoint a standing committee,
which shall have full power and authority to determine the
good faith of any offer made by the employing Producer, so as to
entitle such Producer to notice of subsequent offers, as hereinabove
provided for, and to determine whether the period within which
such notice must be given should be for three (3) months or six (6)
months. The Registrar shall be appointed and removed by said
standing committee at will, and any act or decision of the Registrar
shall be' subject to review, reversal, or modification by said coni-
mittee or by the Code Authority on its own motion or on appli-
cation of any interested party.
The Registrar shall provide an appropriate method whereby all
Producers may ascertain in each instance when, and the period dur-
ing which, notices of offers are to be transmitted to the employing or
former employing Producer. Said Re^strar shall also prescribe the
procedure so as to prevent any employing or any former eniploymg
Producer from any unreasonable delay or from withholding any
action or decision permitted under the provisions hereof, to the end
that the immediate employment of any persons with whom any other
Producer desires to contract shall not be unreasonably delayed or
prevented. In such connection the Registrar shall have power in
any instance to desi^ate a reasonable period, in no event to exceed
three (3) days, within which the second Producer shall be precluded
from executing any proposed contract with the employee or former
employee of the first employing or former employing Producer.
Notwithstanding anything contained in this Part to the contrary,
the provisions of this Part shall apply only to employees whose names
are registered with the Registrar by the employing Producer, and
the right of registration or continued registration may be determined
in any instance by the standing committee either upon its own motion
or on application of any person interested, including the employee
242
affected. In the event of the termination for any reason whatsoever
of the employment of any person whose name is registered, the for-
mer employing Producer shall notify the Registrar in writing forth-
with of such teiTnination. Any Producer may withdraw from regis-
tration the name of any employee or by written notice served on the
Registrar may waive the right to be notified of offers made to any
employee by any other Producer, but he shall not refrain from regis-
tering the name of any employee, withdraw any name so registered
or waive any such right to notice by virtue of any agreement to that
effect with the employee. The Registrar shall provide an appro-
priate method for notifying all Producers promptly of all registra-
tions, withdrawal of registrations, terminations of employment and
waivers.
Sec. 7. If the Code Authority, or any committee appointed by it
for that purpose, after notice and hearing shall find that any em-
ployee of any Producer has refused without just cause to render
services under any contract of employment, the Code Authority shall
have full power and authority, with the approval of the Adminis-
trator, to order all Producers to refrain from employing any such
person in connection with the business of producing motion pictures
for such period of time as may be designated by the Code Authority
and it shall be an unfair trade practice for any Producer to employ
such person in violation of such order, or for any Distributor or
Exhibitor, respectively, to distribute or exhibit any picture pro-
duced during the period prescribed by the Code Authority by or
with the aid of such person. Such hearing shall be conducted only
upon due notice. A full and fair opportunity shall be afforded to
all interested parties to appear. A complete transcript of all testi-
mony and arguments, together with the findings and order of the
Code Authority, shall be made and certified to the Administrator,
who may approve, reject, or modify such order, and in such connec-
tion conduct such further investigations and hearings as to him may
seem necessary or advisable. The order of the Administrator shall
be final.
Sec. 8. If any Producer deliberately, willfully, or persistently
violates any of the provisions of this Part and the Code Authority
so finds, and such finding is upheld by the Administrator, the Code
Authority, with the approval of the Administrator, shall have power
to impose such restrictions, prohibitions, or conditions as it may deem
proper upon the distribution or exhibition of motion pictures pro-
duced by any such offending Producer. Due notice of the ruling of
the Code Authority, as approved by the Administrator, shall be pub-
lished in such manner as the Code Authority prescribes.
Part 6. (a) No cartoon Producer shall employ any person during
such time as he is employed full time by another.
(b) No cartoon Producer shall make any offer directly or indi-
rectly of any money inducement or advantage of any kind to any
employee of any other cartoon Producer in an effoi-t to entice, per-
suade, or induce such employee to leave or become dissatisfied or to
breach any contract covering his employment.
(c) No cartoon Producer shall adapt a cartoon character of an-
other in such manner that the use of the adapted character shall con-
stitute an appropriation by him of the goodwill of the creator.
243
O. PKODUCERS-DISTRIBUTORS
Part 1. Where any contract granting the motion-picture rights
in any dramatic or dramatico-musical work specifies a date prior to
which no motion picture based upon such work may be publicly
exhibited, it shall be deemed to be an unfair trade practice for any
Producer or Distributor to permit the public exhibition of such
motion picture prior to such date.
Part 2. (a) It shall be deemed to be an unfair trade practice
for any Producer or Distributor, by any of its employees or through
other persons who have a direct or indirect interest, whether financial
or otherwise, in any such Producer or Distributor, to knowingly
and intentionally directly or indirectly interfere with existing rela-
tions between an outside or associated Producer and a Producer or
Distributor, or to do anything to alienate or entice any such outside
or associated Producer away from a Producer or Distributor, or to
do anything which would tend to create discord or strife between
such outside or associated Producer and a Producer or Distributor,
or foment dissension between them, for the purpose of inducing such
outside or associated Producer to breach or attempt to breach any
existing contracts between it and Producer or Distributor, or to
secure a change in the terms and conditions of any existing contract
between any such outside associated Producer and a Producer or
Distributor. t^. m - i ^^
(b) To effectuate the foregoing, no Producer or Distributor shall
negotiate with or make any offer tor or to any such outside or asso-
ciated Producer at any time prior to sixty (GO) days before the termi-
nation of any existing agreement between such outside or associated
Producer and any other Producer or Distributor, or not prior to
sixty (60) days before the date when such outside or associated
Producer shall fulfill its delivery commitment to the Producer or
Distributor with whom it has contractual obligations, whichever
date is earher.
D. DISTRIBUTORS
Part 1. No Distributor shall threaten or coerce or intimidate any
Exhibitor to enter into any contract for the exhibition of motion
pictures, or to pay higher film rentals by the commission of_ any
overt act evidencing an intention to build or otherwise acquire a
motion picture theater for operation in competition with such Ex-
hibitor, but nothing in this ARTICLE shall in any way abridge
the right of a Producer or Distributor in good faith to build or
otherwise acquire a motion picture theater in any location.
Part 2. No Distributor's employee shall use his position with the
Distributor to interfere with the licensing of motion pictures by an
Exhibitor operating a theater in competition with a theater in which
such employee may have a direct or indirect interest, provided, how-
ever, that an employee of a Distributor shall not be deemed to have
an interest in anv theater affiliated with such Distributor.
Part 3. (a) No Distributor shall substitute for any feature mo-
tion picture described in the contract therefor as that of a named
star or stars, or named director or named well-known author, book,
or play one of any other star or stars, director, author, book, or play,
244
nor shall suA Distributor substitute any other feature motion pic-
ture for one -which in the contract therefor is designated " no sub-
stitute " ; and no Exhibitor shall be required to accept any such
substitute motion picture,
(b) Nothing in this AETICLE contained shall be interpreted to
prohibit any Distributor from changing the title of any motion pic-
ture contracted for, from making changes, alterations, and adapta-
tions of any story, book, or play upon which it is based and from
substituting for any such story, book, or play another story, book, or
play, or from changing the director, cast, or any member thereof
of any such motion picture, except as hereinabove specifically
prohibited.
(c) If for any such author, book, or play there is substituted an-
other author, book, or play, notice of such substitution shall be given
by a paid advertisement of not less than one quarter page in at least
one issue of a national trade publication before the release date of
the motion picture in which such substitution has been made.
_ Part 4. (a) It shall be an unfair practice for any Distributor to
license the exhibition of its motion pictures for exhibition by any non-
theatrical account contrary to any determination, restriction, or limi-
tation by a Local Grievance Board where such exhibition shall be
determined by such Grievance Board provided for in this Code to be
unfair to an established motion-picture theatre.
(b) Nothing in this PAET shall be interpreted to prohibit the
licensing of motion pictures for exhibition at army posts, or camps,
or on board ships of the United States Navy or ships engaged in
carrying passengers to foreign or domestic ports or at educational
or religious institutions or at institutions housing " shut-ins ", such
as prisons, hospitals, orphanages, etc.
Part 5. No Distributor shall require as a condition of entering into
a contract for the licensing of the exhibition of feature motion pic-
tures that the Exhibitor contract also for the licensing of the exhibi-
tion of a greater number of short subjects (excepting news reels), in
proportion to the total number of short subjects required by such
Exhibitor, than the proportion of the feature pictures for which a
contract is negotiated bears to the total number of feature pictures
required by the Exhibitor.
Part 6. No Distributor shall divulge or authorize or knowingly
permit to be divulged by any employee or checker any informatfon
received in the checking of the receipts of its motion pictures, except
that such information may be divulged in any arbitration or griev-
ance proceeding or litigation concerning a controversy and for any
Government or Code Authority report.
Part 7. No Distributor shall convey or transfer its assets for the
purpose of avoiding the delivery to any Exhibitor of any feature
motion picture hcensed for exhibition by such Exhibitor.
Part 8. No Distributor shall refuse to make a fair adjustment of
the license fees for the exhibition rights of a number of pictures
hcensed in a group for a stated average sum per picture and so stated
m the license agreement, if the total number of pictures so licensed
by any Exhibitor are not delivered by such Distributor, provided
such Exhibitor shall have fully and completely performed all the
terms and conditions of such license on the part of the Exhibitor to
245
be performed. Any dispute or controversy concerning any such ad-
justment shall be determined by a Local Grievance Board provided
for in this Code. -n -,
Part 9. (a) No Distributor shall require any specifac day or days
of the week for the exhibition of specified pictures or class of pic-
tures unless specifically provided for in the Exhibitor's contract there-
for and in no event if the license fee therefor is a fixed sum only.
(b) Where under an exhibition contract which provides that the
rental to be paid by the Exhibitor for any feature motion picture
specified therein shall be determined in whole or in part upon a per-
centage basis, and that said picture shall be played by the Exhibitor
upon a designated day or days of the week and the Exhibitor seeks
to be relieved from the obligation to exhibit such motion picture
upon -such designated day or days for the reason only that the
subject and character of the motion picture so designated are unsuit-
able for exhibition at the Exhibitor's theatre on such day or days,
the claim of the Exhibitor shall be determined by the Local Griev-
ance Board provided for by this Code, and the Distributor, if such
Local Board so determines, shall relieve the Exhibitor from the
obligation to play the motion picture upon the day or days desig-
nated by the Distributor; provided that the Exhibitor makes such
claim within three (3) days after receipt of the notice of avail-
ability of such feature picture. In such cases the said Local Board
shall proceed to determine the matter upon forty-eight (48) hours'
notice if the Distributor so desires.
(c) If the said Local Board shall sustain the claim of the
Exhibitor: .
(1) the Distributor shall have the right to designate for the same
day or dates another motion picture licensed upon a percentage basis
upon the same or similar terms as the motion picture in question, if
there be one licensed; and to designate the motion picture objected
to for a later date or dates but upon another day or other days of
the week; and (2) the award of the said Local Board shall not be
deemed to apply to any other theatre in the same way or any other
location. ^ r^ •
(d) "Where because of a proceeding before a Local Grievance
Board, or because of an award of such Local Board, it shall be im-
practical to serve subsequent-run Exhibitors in compliance with
any notice of availability or confirmed play dates given any such
subsequent-run Exhibitors, the Distributors shall have the right to
change such plav dates.
Part 10. No Distributor shall refuse to deliver to any Exhibitor
any feature motion picture licensed under an exhibition contract
therefor because of such Exhibitor's default in the performance of
any exhibition contract licensing the exhibition of short subjects of
such Distributor, or vice versa, provided such Exhibitor has agreed
to arbitrate all claims and controversies arising under all existing
Optional Standard License Agreements between them.
Part 11. (a) If any Exhibitor has contracted to exhibit more than
fifty percent (50%)' of the total number of motion pictures an-
nounced for release during any given season by a Distributor and
such Distributor shall during such season generally release any
feature motion picture in addition to the number so announced,
246
such Distributor shall first offer to the Exhibitor for license such
additional motion pictures for exhibition at the Exliibitor's theatre,
provided that at the time of sucli offer such Exhibitor shall have
duly performed all the terms and conditions of all existing exiiibition
contracts between such Exhibitor and Distributor and is not in
default thereunder.
(b) In cases where two Exhibitors have each contracted to exhibit,
respectively, an equal division (i.e. 50%) of the number of motion
pictures announced for release by a Distributor during any given
season, and the Distributor shall generally release during such season
any feature motion picture in addition to the number so announced,
such Distributor shall first offer such additional motion picture for
license to one of such Exhibitors, in the discretion of the Distributor,
provided that at the time of such offer such Exhibitor shall have
duly performed all the terms and conditions of all existing exhibi-
tion contracts between such Exhibitor and Distributor and is not
in default thereunder.
Part 12. In each territory wherein any Distributor maintains an
exchange, such Distributor shall abide lay the regulations promul-
gated by the Code Authority for the prevention of fire, for the hold-
ing of fire drills, and rigid monthly inspections, the inspection of
prints, the storing of inflammable material, the maintenance and
testing of sprinkler systems and fire extinguishers, the avoidance
of smoking and other cautions, methods and devices to protect the
lives of employees and the public, and to insure safety against fire
hazards.
E. EXHIBITORS
Part 1. Any Exhibitor entering into a contract for the exhibition
of motion pictures w^iich permits the Exhibitor to select from the
total number of pictures licensed less than eiglity-five percent (85%)
of the total number, and to reject the remainder, shall by written
notice to the Distributor reject each of such motion pictures not to
exceed the number which may be rejected, within twenty-one (21)
days after its date of availability in tlie exchange territory wherein
is located the Exhibitor's theatre, and upon the Exhibitor's failing
to give such notice of rejection, each of such pictures shall be deemed
to have been selected.
Part 2. No Exhibitor shall contract for a license to exhibit more
motion pictures than sucli Exhibitor reasonably shall require for
exhibition in any theatre or theatres operated by such Exhibitor,
with the intent and effect of depriving a competing Exhibitor from
contracting to exhibit such excess number of motion pictures, pro-
vided, however, that nothing herein contained shall be deemed to
prohibit any Exhibitor from contracting for a reasonable number
of motion pictures in excess of the number which are actually to be
exhibited in the theatre or theatres of such Exhibitor in order to
reasonably protect such Exhibitor against non-delivery of motion
pictures.
Part 3. Section 1. No Exhibitor shall (a) lower the admission
prices publicly announced or advertised for his theatre by giving
rebates in the form of lotteries, prizes, reduced script books, coupons,
throw-away tickets, or by tw^o-for-one admissions, or by other
247
methods or devices of similar nature which directly or indirectly
lower or tend to lower such announced admission prices and which
are unfair to competing Exhibitors, or which deceive the public; or
(b) fail at all times to maintain the minimum price of admission
specified in any contract licensing the exhibition of any motion pic-
ture during the exhibition thereof. This Section shall not be deemed
to prohibit Exhibitors from reducing or increasing their admission
scales as they see fit, except as may be prohibited by exhibition
contracts. . ■ i _e p
Sec. 2. The giving of rebates such as premiums m the torm ot
o-ifts or other things of value shall be deemed to be included withm
the pro\^sions of Section 1 of this Article in those areas as shall be
defined by each Local Clearance and Zoning Board, where the Ex-
hibitors operating not less than seventy five percent (75%) of the
number of the then actively and continuously operated theatres not
affiliated with Distributors or Producers and the Exhibitors operat-
ing not less than seventy five percent (75%) of the number of the
then actively and continuously operated theatres affihated with Dis-
tributors or Producers have both declared in writing that the giving
of rebates in such form shall not be permitted. For the purpose of
such declaration each Exhibitor shall be entitled to one vote for each
theatre then actively and continuously operated by such Exhibitor.
Sec. 3. In case any Exhibitor is found after notice and hearing by
a Local Grievance Board provided for in this Code, to have violated
any provision of this part, and if such Local Board shall on account
thereof declare that such Exhibitor shall not be permitted to license
the exhibition of any motion picture unless the Exhibitor ceases and
desists from such violation, the Local Grievance Board shall have
power to direct that Distributors of motion pictures shall refuse to
enter into license contracts for the exhibition of their respective
motion pictures by such Exhibitor and shall refuse to make further
deliveries of motion pictures to such Exhibitor under license agree-
ments executed after the effective date of this Code if the Exhibitor
fails or refuses to so cease and desist. i i ^i
Sec. 4. Notwithstanding any action which may be taken by the
Exhibitors in any area as above in this Part 3 defined ruling out
the crivino- of rebates as defined in Section 1 hereof, such ruling
shalf not become effective until ninety (90) days after such action
on the part of such Exhibitors as aforesaid.
Purt 4. No Exhibitor shall transfer the ownership or possession
of a theatre or theatres operated by any such Exhibitor for the
purpose of avoiding uncompleted contracts for the exhibition ot
motion pictures at such theatre or theatres. Any disputes or con-
troversies with respect to any transfer shall be submitted to and
determined bv a Local Grievance Board, and the findings of such
Board shall be binding upon all parties concerned.
Part S (a) No Exhibitor licensed to exhibit a motion picture
subsequent to its exhibition by another Exhibitor having the right
to a prior run thereof shall advertise such motion picture by any
means of advertising prior to or during its exhibition by such other
Exhibitor. . • i • -i ^ ,
(b) Notwithstanding anything herein contained, m the event any
Exhibitor shall make complaint that the restrictions embraced in
248
this part work an unfair hardship on him, the Lfocal Grievance
Board shall have the right to hear such complaint and after de-
termination of the facts presented shall fix and specify tlie time
limit within which such Exhibitor may advertise such motion pic-
ture; provided, however, that should the subsequent-run Exhibitor
be granted permission to advertise before the completion of said
prior run, he shall not advertise prior to the commencement of said
prior run, nor shall he have the right to advertise in any way, shape,
manner or form, or issue any statement that the prices of admission
are or will be less than the admission prices charged by the Exhibitor
having the first or prior run of such motion picture; provided fur-
ther, however, that such subsequent-run Exhibitor may be granted
the right in cases where the run of such Exhibitor follows the prior
run in or within a period of seven (7) days, to advertise upon the
screen of the Exhibitor or to distribute within the Exhibitor's theatre
a printed program or mail such printed program to a list of regular
patrons, such programs to be limited to announcement of the motion
pictures which will be there exhibited during the period of not more
than seven (7) days immediately following.
(c) Nothing herein contained shall be deemed to prohibit any Ex-
hibitor from advertising generally all of the feature motion pictures
licensed for exhibition by such Exhibitor as a group, but such gen-
eral advertising shall not refer to any one of such motion pictures
at any time prior to its exhibition by any other Exhibitor having
the first or immediately prior run thereof excepting as hereinabove
provided.
Part 6. To prevent disturbance of the continued possession of a
theatre by an Exhibitor, it shall be an unfair trade practice for any
person engaged in the motion picture industry knowingly and in-
tentionally, directly or indirectly, to interfere with pending nego-
tiations between such Exhibitor and any other party pertaining to
or affecting the possession, operation, or occupancy of any such
theatre then actually operated by such -Exhibitor, or in respect of
any modification, renewal, or extension of any agreement affecting
the same, for the purpose of preventing the consummation of such
negotiations so as to deprive such Exhibitor of the continued opera-
tion, possession, or occupancy of such theatre.
Part 7. No Exhibitor shall exhibit a motion picture previous to
dawn of the first licensed and booked day of exhibition without
securing express written permission therefor under the license
agreement.
r. DISTRIBUTORS EXHIBITORS
Part 1. The so-called Optional Standard License Agreement
(1933) negotiated by Exhibitors and now being used by a large num-
ber of Distributors shall be the form of license contract to be used
by Distributors for licensing the exhibition of motion pictures, unless
the parties mutually agree that a different form be used, and
excepting that in case any condition or provision thereof is in con-
flict or inconsistent with any provision of this Code, such condition
or provision of said Optional Standard License Agreement shall be
deemed amended to conform with such provision of this Code, it
being the intention that the provisions of this Code shall govern.
Individual Distributor sales policy provisions may be inserted in the
249
Schedule of such form but shall not be contradictory of any provisions
thereof. i -i •,
Part 2. (a) The arbitration of all disputes between Exhibitors
and Distributors arising under any exhibition contract, if the parties
shall agree on arbitration, shall be in accordance with the optional
arbitration clause of the so-called Optional Standard License Agree-
ment, provided for in this Code, except as the provisions of such
clause may be modified by the provisions of this Code.
(b) By stipulation of the parties to any dispute growing out of
an exhibition contract, the number of arbitrators to be appointed
by each party may be reduced to one, with power in the two thus
appointed, if they cannot agree upon an award, to appoint an umpire
as provided in said optional arbitration clause.
Part 3. No Exhibitor or Distributor shall inchice or seek to
induce the breach of any subsisting contract licensing the exhibition
of motion pictures.
Part J,.. No Exhibitor or Distributor shall give any gratuity or
make any offer of any gratuity for the purpose of procuring advan-
tages that would not otherwise be procurable, or as an inducement
to influence a Distributor or Exhibitor, or representative of either
not to deal with any competing or other Exhibitors, or Distributors.
Part 6. No Exhibitor or Distributor shall make any disclosure
of box office receipts for publication except necessary reports to
stockholders, credit and governmental agencies, and to other like
bodies. No Exhibitor or Distributor shall be responsible for dis-
closures in violation of this Part made by agents not authorized to
do so. • p J.
Part 6. If in any license agreement for the exhibition of feature
motion pictures the Exhibitor has contracted to exhibit all of the
motion pictures offered at one time by the Distributor to the Exhib-
itor and the license fees of all thereof average not more than
$250.00, the Exhibitor shall have the privilege to exclude from such
license agreement not to exceed ten percent (10%) of the total
number of the motion pictures so licensed; provided the Exhibitor
(1) is not in default under such license agreement, and
(2) shall have complied with all of the provisions thereof, if any,
for the exhibition of such motion pictures at specified intervals.
(b) Such privilege of exclusion may be exercised only upon the
following terms and conditions :
(1) The Exhibitor shall give to the Distributor written notice of
each motion picture to be excluded within fourteen (14) days after
the general release date thereof in the exchange territory out of
which the Exhibitor is served.
(2) The Exhibitor may exclude without payment therefor one (1)
motion picture out of each gi'oup of ten (10) of the number of
feature motion pictures specified in the license agreement provided
he has paid for the other nine (9) of such group.
(3) If such privilege of exclusion is not exercised as provided in
paragraph (b) (2) above, the Exhibitor may nevertheless exercise
such privilege by paying the license fee of each motion picture
excluded with the notice of its exclusion. In such case, such pay-
ment shall be credited against such tenth or succeeding tenth motion
250
picture, as the case may be, which the Exhibitor would otherwise be
privileged to exchide as provided in paragraph (b) (2) above.
If the only or last group licensed is less than ten (10) and
more than five (5) motion pictures, the privilege to exclude shall
apply provided the Exhibitor has paid for all motion pictures but
one in such group.
(c) Upon the failure or refusal of the Exhibitor to comply with
any term or condition of such license agreement, or to comply with
any arbitration award in respect thereto, the privilege of exclusion
forthwith shall be revoked and the Exhibitor shall be liable for and
pay to the Distributor the license fees of all motion pictures
theretofore excluded.
(d) If the license fee of any feature motion picture specified in the
license agreement is to be computed in whole or in part upon a per-
centage of the receipts of the Exhibitor's theater, such license fee (for
the purpose of computing the average license fee of all the motion
pictures licensed) shall be determined as follows:
(1) Average the license fees of all of the Distributor's feature
motion pictures exhibited upon a percentage basis at the Exhibitor's
theater during the period of one year prior to the term of such license
agreement.
(2) If none of the Distributor's feature motion pictures were ex-
hibited upon a percentage basis at such theater during said period
average the license fees of all feature motion pictures exhibited upon
a percentage basis at such theater during the said period.
(e) If the rental of any motion picture excluded is to be computed
in whole or in part upon a percentage of. the receipts of the Exhib-
itor's theater, the sum to be paid by the Exhibitor as provided in
paragraph (b) (3) hereof shall be determined as follows:
(1) Average the gross receipts of all the Distributor's feature
motion pictures exhibited at the Exhibitor's theatre during the ninety
(90) day period preceding the Exhibitor's notice of exclusion, and
apply to such average the percentage terms specified in the license
agreement for the picture excluded.
(2) If no feature motion pictures of the Distributor were exhib-
ited at the Exhibitor's theatre during said ninety (90) day period
average the daily gross receipts of the Exhibitor's theatre for the
period of thirty (30) operating days preceding the Exhibitor's no-
tice of exclusion and apply to such average the percentage terms
specified m the license agreement for the picture excluded.
(f) In computing the number of feature motion pictures which
may be excluded hereunder, fractions of more than one half (Vo)
shall be regarded as one (1).
(g) Upon the exclusion of each feature motion picture, the license
therefor and all rights thereunder shall terminate and shall revert
to the Distributor.
(h) The Optional Standard License Agreement referred to in
Part 1 hereof shall be deemed amended by substituting in place of
Article Fifteenth of such contract the provisions of this Part.
Article VI
Part 1. Clearance and Zoning Boards. — Section 1. To provide
against clearance of unreasonable length and/or area in any ex-
251
change territory, fair, just, reasonable, and equitable schedules of
clearance and zoning may be prescribed by a Local Clearance and
Zoning Board created for such territory. * i •
Sec. 2. Each such Board shall be appointed by the Code Authority
and shall consist of two representatives of Distributors, one of whom
shall be a National Distributor with theatre affiliations and one of
whom shall be a Distributor without circuit theatre affiliations ; two
representatives of first-run theatres located in such territory, one of
whom shall be an affiliated Exhibitor, if there be one, and one of
whom shall be an unaffiliated Exhibitor ; and two representatives of
subsequent-run unaffiliated theatres operating within such territory ;
and one person approved by the Administrator who shall have no
direct or indirect affiliation" with any branch of the motion-picture
industry who shall be regarded as the impartial representative of the
Code Authority and who shall vote on any question before the Board
only in the case where the Board is deadlocked. There shall be a
Chairman of each Board, selected by a majority vote of the members
of the Board. Any vacancy in the Board shall be filled from the
class of members in which the vacancy occurred.
Sec. 3. Each Local Clearance and Zoning Board shall, promptly
after its creation, and prior to January 1, 1934, and prior to January
1st of each year thereafter, formulate, prescribe and publish for its
territory, schedules of clearance as in Section 1 above described, for
the season next ensuing. Such schedules may classify theatres by
zones or other classifications suited to local conditions, but for the
sole purpose of fixing the maximum clearance in length of time and
area after the conclusion of the prior runs of such theatres. Each
Board may, after fair and reasonable notice and hearing to interested
parties, change, modify, or vary any part of the schedule set up
by it, provided that any such change or modification shall not in
any wise apply to, affect, or modify any exhibition contract made
subject to, or in reliance upon, or pursuant to any such schedules,
without the prior written consent of the parties to such contract.
Sec. 4. Each Board when making any classification of theatres, or
when fixing the maximum period or area of clearance in respect of
any theatre shall, among other things, consider and give due regard
to the following factors :
(a) that clearance to a very considerable extent determines the
rental value of motion pictures ;
(b) that exhibitions of the same motion picture within the same
competitive area at too short an interval after the conclusion of a
preceding run or runs thereof by unduly restricting the competitive
area in which clearance is limited, depreciates the rental value of
motion pictures; and
(c) that all such depreciations of the rental values of motion pic-
tures tend to reduce the number of motion pictures produced, dis-
courages the production of motion pictures of quality involving
large investments of capital, labor, skill, and enterprise and thereby
tend to reduce employment.
(d) that unreasonable clearance to a considerable extent affects
the value of motion pictures for subsequent-run theaters.
(e) that unreasonabe clearance depreciates the potential return
from motion pictures to subsequent-run theaters.
252
(f ) that unreasonable clearance as to time and area diminishes the
potential revenue to the Distributor from the subsequent-run Ex-
hibitor.
Sec. 5. The decision of each Board upon any question shall be
determined by a majority vote, but in case the Board is evenly di-
vided, such question shall be submitted for determination to the im-
partial representative of the Code Authority, vv^ho is provided for
in Section 2 of this PART. The decision of the Board and/or the
impartial representative, as the case may be, shall be in writing.
Sec. 6. It shall be the duty of each such Board to promptly pub-
lish the schedules formulated by it, and file a copy thereof imme-
diately with the Code Authority.
Sec. 7. (a) Any party aggrieved by the schedules shall promptly
and not later than thirty (30) days after publication thereof file
a protest in Avriting with the Board issuing them. Thereupon such
Board shall promptly convene and give reasonable notice of hearing
to all parties concerned or having an interest in the proceedino: and
hear them and accept from them all papers and evidence. The Board
shall have power to make reasonable rules respecting notice of the
time, place, and manner of hearing. The Board shall make its de-
cision within fifteen (15) days from the filing of the protest, or
within three (3) days after the parties shall have been fully heard,
whichever date is sooner. Any party aggrieved by the decision shall
have the absolute right to appeal therefrom to the Code Authority,
provided such appeal be filed or mailed by registered mail or de-
livered in writing not later than five (5) days after the decision
of the Local Board is rendered, in which case the protest, with all
evidence taken before the Local Clearance and Zoning Board, shall
be referred to the Code Authority.
(b) All persons interested in the decision shall have the right to
appear before the Code Authority and present additional evidence.
The Code Authority, after investigating such protest and reviewing
the evidence theretofore taken and considering the additional evi-
dence, if any, shall promptly render its decision, and not later than
fifteen (15) days from and after the date of the hearing upon the
appeal. The requirement as to the various steps herein prescribed
shall be mandatory in order to give full relief before the buying
season commences.
Sec. 8. (a) The schedules presented and/or decisions made by any
Local Clearance and Zoning Board and/or decisions of the Code
Authority upon any appeal to it, shall be binding upon all Dis-
tributors and Exhibitors in the territory affected.
(b) Pending the final determination of any dispute or controversy
all existing contracts between the disputants shall continue to be
performed in every respect.
Sec. 9. The jurisdiction of the Local Clearance and Zoning Board
shall be limited as herein specifically provided and such Board shall
hear no questions other than those"^ pertaining strictly to clearance
and zoning matters.
Part 2. Grievance ^oavY^s.— Section 1. The complaint of any Ex-
hibitor that a competing Exhibitor has committed any of the acts
set forth in the following paragraphs (a), (b), (c), and (d) with the
intention and effect of depriving, without just cause, the complaining
253
Exhibitor of a sufficient number of motion pictures to operate such
Exhibitor's theatre, shall be referred for determination to a Local
Grievance Board constituted as hereinafter provided :
(a) The licensing of more motion pictures than are reasonably
required. . . ■,■ r
(b) The adoption of an unfairly competing operating policy of
unnecessary and too frequent changes of motion pictures.
(c) The exaction without just cause of an agreement from any
Distributor as a condition for entering into a contract for motion
pictures that such Distributor refrain from licensing its motion
pictures to the complaining Exhibitor.
(d) The commission of any other similar act with the intent and
effect of depriving without just cause the complaining Exhibitor of a
sufficient number of motion pictures to operate such Exhibitor's
theatre. . . ,
Sec. 2. Each such complaint shall be m writing and made immedi-
ately after knowledge of the commission of the act or acts complained
of, or in cases where an act or acts is threatened, immediately after
notice thereof, and the Local Grievance Board after a fair and im-
partial consideration of all of the facts presented, a full, expeditious
and complete hearing of all the parties concerned, including the
Exhibitors directly involved, the Distributors having contracts with
the Exhibitor complained against, and Exhibitors having contracts
for runs subsequent to each of the Exhibitors directly involved, and
if it deems it necessary, an independent investigation of the facts,
shall make a prompt determination of each complaint submitted to it.
Sec. 3. The Local Grievance Board shall determine whether or not
any Exhibitor complained of has committed any of the acts specified
in paragraphs (a), (b), (c), and (d) of Section 1 of Part 2 hereof,
and shall make findings of fact in such regard. The Local Grievance
Board upon the facts found shall make an award (a) dismissing the
complaint, or (b) granting such relief as the Local Board may deem
appropriate. The Local Grievance Board shall not have power to
award damages. No award shall be made in favor of a complaining
Exhibitor unless the Local Grievance Board shall find as a fact that
the complaining Exhibitor is able, ready, and willing to fully carry
out and comply with all of the terms and conditions which may be
fixed by the Local Grievance Board as a condition for making the
award, which terms and conditions shall in no event be less favorable
to the Distributor concerned than those contained in the license con-
tract of the Exhibitor complained of, including the Distributor's loss
of revenue, if any, resulting from the elimination of or reduction
of revenue from any subsequent run or runs made necessary by such
award, and such other terms and conditions as the Local Grievance
Board may prescribe. ^ -r^ , ., -^ t^- x -u
Sec. 4. All complaints and grievances of Exhibitors or Distribu-
tors concerning provisions of this Code or otherwise and not specifi-
cally designated to be heard or passed upon in the first instance by
the Code ^Authority or by arbitration or by the Local Clearance
and Zoning Board shall be heard by the Local Grievance Board, and
if such Local Board by a majority vote of the representatives thereon
shall deem that any such complaint or grievance shall be certified
to he Code Authority for determination, it shall be so certified, and
254
the Code Authority shall consider and determine the same; other-
wise such complaint or grievance shall be dismissed with a right of
appeal from such dismissal to the Code Authority. Such proceed-
ings before the Local Grievance Board and before the Code Author-
ity shall be within the periods of time hereinafter prescribed in
Sections 6 and 7 hereof.
Sec. 5. Each Distributor shall have the right to license all or any
number of the motion pictures distributed by such Distributor for
exhibition at theatres affiliated with such Distributor, and no Local
Grievance Board shall have jurisdiction to hear or determine any
complaint by any Exhibitor based upon the fact that a Distributor
has licensed the motion pictures distributed by it for exhibition at
theatres affiliated with such Distributor.
Sec. 6. (a) There shall be established a Local Grievance Board,
appointed by the Code Authority, in each exchange territory. Each
such Board shall consist of two representatives of Distributors, one
of whom shall be a National Distributor with theatre affiliations' and
one of whom shall be a Distributor without circuit theatre affilia-
tions, and two representatives of Exhibitors, one of whom shall be
an affiliated Exhibitor, if there be one, and one of whom shall be an
unaffiliated Exhibitor, and one person who shall have no direct or
indirect affiliation with any branch of the motion picture industrv,
who shall be approved by the Administrator, who shall be regarded
as the impartial representative of the Code Authority, and who shall
vote on any question before the Board only in the case where the
Board is deadlocked. There shall be a Chairman of each Board,
selected by a majority vote of the members of the Board. Any
vacancy in the Board shall be filled from the class of members in
which the vacancy occurred. No member of such Board shall sit on
any matter involving his own or his company's interest.
(b) The decision of each Local Board upon any question sub-
mitted to it shall be determined by a majority vote, but in case the
Board is evenly divided, such question shall be submitted for de-
termmation to the impartial representative of the Code Authority, as
provided in paragraph (a) of this Section. The decision of the
Board and/or the impartial representative, as the case may be, shall
be in writing. All decisions of the Local Board shall be made within
fifteen (15) days from the filing of the protest, grievance, or com-
plaint, or within three (3) business days after the parties shall have
been fully heard, whichever date is earlier.
Sec. 7. (a) Any party aggrieved by any decision of the Local
Board shall have the absolute right to appeal therefrom to the Code
Authority, provided such appeal be filed or mailed by registered
mail or delivered in writing not later than five (5) days after the
decision of the Local Board is rendered, in which case the grievance
or complaint, together with all the evidence taken before the Local
Board shall be referred to the Code Authority.
(b) Pending the determination of such appeal, the determination
order or other action of the Local Grievance Board shall be staj^ed.
(c) Any party aggrieved shall have the right to appear before the
Code Authority and present additional evidence. The Code Author-
ity, after investigating the complaint or grievance and reviewing the
evidence theretofore taken, and considering the additional evidence,
255
if any, shall promptly render its decision not later than fifteen (15)
days from and after the date when the parties have been fully heard
on appeal.
Sec. 8. No Exhibitor or Distributor shall be entitled to file any
complaint under this or any other Article of this Code unless
such Exhibitor or Distributor shall have duly executed this Code
in its entirety within forty-five (45) days after it is signed by the
President of the United States, and/or forty-five (45) days after en-
gaging in the motion picture industry, and shall have thereby agreed
to comply with all the requirements of the National Industrial
Recovery Act. Evidence of such compliance shall be filed with the
Code Authority.
Part 3. All members appointed to serve on respective Clearance
and Zoning Boards and Local Grievance Boards shall be persons
of good repute and of good standing in the industry, and shall upon
acceptance of appointment subscribe and file with the Administra-
tor an oath to fairly and impartially determine whatever issue is
presented to the Board to which such member has been appointed.
No such Board shall contain in its membership more than one rep-
resentative of any Distributor or Exhibitor.
Vart 4- If a member of any Board provided for by this Article
VI ceases to belong to the class he represents upon such Board, his
membership shall terminate, and the Code Authority shall fill the
vacancy so caused by designating a representative of the same class.
Article VII — General Trade Policy PEO\nsiONs
Part 1. The industry pledges its combined strength to maintain
right moral standards m the production of motion pictures as a form
of entertainment. To that end the industry pledges itself to and
shall adhere to the regulations promulgated by and within the indus-
try to assure the attainment of such purpose.
Part 2. The industry pledges its combined strength to maintain
the best standards of advertising and publicity procedure. To that
end the industry pledges itself to and shall adhere to the regulations
promulgated by and within the industry to assure the attainment
of such purpose.
Article VIII — Miscellaneous Provisions
Part 1. Any Exhibitor forwarding or delivering to another Ex-
hibitor a print of a motion picture at the request or upon the order
of the Distributor thereof, shall, but only for such purpose, be
deemed to be the agent of such Distributor.
Part £. (a) Wherever in this Code arbitration of any matter is
provided for, other than arbitration as provided in the Optional
Standard License Agreement (1933) or as may be otherwise spe-
cifically provided for, such matter shall be submitted for determina-
tion to an Arbitration Board. Such Arbitration Board shall con-
sist of four (4) members. Each of the groups concerned in such
matter shall appoint two of such members. In any case where
arbitration is to be used as provided in this Code, upon the written
request of either group to the dispute or controversy the group mak-
ing such request shall name therein two arbitrators, stating the
256
business address and business or business connection of each, and
shall designate therein the date, time, and place of the hearing of
such controvers}'. The date of such hearing shall not be earlier than
seven (7) days from the date of the sending of such notice, unless
it shall be claimed in such notice that irreparable injury will result
unless there is a speedy determination of such controversy, in which
case such hearing may be designated to be held earlier than the said
seven-day period.
(b) Within five (5) days from the mailing of such request for
arbitration, or within twenty-four (24) hours if the date of such
hearing shall be earlier than seven (7) days from the date of the
sending of such notice, the group upon whom such request is made
shall name two arbitrators in a written notice mailed or delivered
to the other party, stating therein the business address and business
or business connection of each arbitrator. If either group fails or
refuses to name the arbitrators as herein provided, or if any arbitra-
tor so named shall fail or refuse to act, or be unable to serve, or
shall be challenged, and others are or another arbitrator qualified
and then available to act is not appointed, others or another arbi-
trator may be appointed by the other group as the case may be.
(c) jS'o member of an Arbitration Board shall hear or determine
any controversy in which he has an interest, direct or indirect, and
any member having such interest shall be disqualified to act.
(d) If the arbitrators or a majority of them are unable to reach
a decision, they or a majority of them shall immediately select an
umpire who shall not be engaged in the motion picture business. In
such case, the hearing before the umpire shall be at such time and
place as the umpire shall designate and shall be had before the
umpire alone, the arbitrators not to be permitted to attend the hear-
ing before the umpire. If the arbitrators or a majority of them are
unable to agree upon the selection of an umpire, the Administrator
shall upon request make such selection.
Part 3. Nothing in this Code shall be deemed to apply to the pro-
duction, distribution, or exhibition of motion pictures on film of
recognized substandard widths, or to slide films, or to nontheatrical
motion pictures designed primarily for educational, scientific, in-
dustrial, commercial, advertising, selling, or other nontheatrical pur-
pose, or to television of motion pictures, provided that the commercial
production, distribution, or exhibition of such films shall be subject
to investigation by the Code Authority to determine whether such
production, distribution, or exhibition of such films is unfair compe-
tition to an established motion-picture theatre or theatres. If found
to be unfair competition, the Code Authority shall promulgate rules
and regulations governing such unfair competition.
Part 4- The provisions of this Code shall be separable.
Article IX — Mandatory and Amending Provisions
Part 1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
vision of Clause 10 (b) of the Natioiial 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
257
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.
Part 2. Such of the provisions of this Code as are not required
to be included therein by the National Industrial Recovery Act, upon
the application of the Code Authority approved by the Administrator
and with the approval of the President, may be modified or elimi-
nated 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 other unfair
and destructive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act con-
sistent with the provisions hereof.
Approved Code No. 124
Registry No. 1639-03
o
Approved Code No. 125
CODE OF FAIR COMPETITION
FOR THE
UPHOLSTERY AND DRAPERY TEXTILE
INDUSTRY
As Approved on November 27, 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 Upholstery and Drapery Textile 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
Baid 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 iC, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said code
of fair competition be and it is hereby approved, subject to the
following conditions:
(1) xlny manufacturer producing upholstery and drapery fabrics,
and known to the trade as a cotton manufacturer, a wool-goods
manufacturer, a silk manufacturer, or a rayon manufacturer, who has
been operating as of August 15th, under a code of fair competition
for such industry, may elect not to be bound bj any of the pro-
visions of this code, with the exception of article IX, provided,
that notice of such decision by such manufacturer shall be filed in
23774° 244-93 33 (259)
260
writing with the National Upholstery and Drapery Textile Asso-
ciation, Incorporated, at its offices, 185 Madison Avenue, New York,
N.Y., and also filed in writing with the Cotton Textile Institute,
320 Broadway, New York, N.Y., or the National Association of Wool
Manufacturers, 229 Fourth Avenue, New York, N.Y., or the Silk
Association of America, 468 Fourth Avenue, New York, N.Y., or
the National Rayon Weavers Association, 40 Worth Street, New
York, N.Y., not later than 6 : 00 p.m., Eastern standard time, on the
second Monday following the approval of this paragraph.
(2) The provisions oi article III, section 4, of this code are
hereby stayed for a period of fourteen (14) days from the effective
date of this code insofar as said provisions are applicable to those
looms on which are manufactured pile fabrics used exclusively for
automobile upholstery.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson.
A dministrator.
The White House,
November £7, 1933,
November 17, 1933.
The President,
The White House.
Sir : The Public Hearinnj on the Code of Fair Competition for the
Upholstery and Drapery Textile Industry, as proposed by the Na-
tional Upholstery and Drapery Textile Association, was conducted
in Washington on August 30, 1933. Every person who requested an
appearance was freely heard in accordance with statutory and regu-
latory requirements. The code has the approval of the great ma-
jority of manufacturers who work exclusively on upholstery and
drapery fabrics or for whom these lines constitute a substantial part
of their business.
DESCRIPTION OF THE INDUSTRY
Unique difficulties arose when considering this code because of spe-
cial conditions inherent in this branch of the textile industry.
The production of upholstery and drapery fabrics is a business
which, on equipment of great versatility, uses all types of fibers in
producing fabrics to develop and meet style changes. Since its
founding, it has been a separate and distinct branch of the textile
industry, generally unaffiliated with the production of other textiles.
This separation was the natural result of the variety of raw materials
used and the special skill and art required in the manufacture of
these fabrics. Sales also are made through specialized channels.
Upholstery fabrics generally are sold direct to manufacturers of
furniture, automobiles, railroad cars, etc. Drapery fabrics are sold
direct by the mill to large retail outlets while smaller retail outlets
are reached through wholesalers.
The industry realizes that it is only a small branch of the whole
textile industry but because of the variety of fibers used, its special-
ized type of products, and its separate distribution problems, it does
not fit into any of the major classifications of textiles.
The fibers employed in the manufacture of upholstery and drapery
fabrics include every known natural and synthetic fiber used in the
production of textiles. From year to year style and price require-
ments cause substantial changes to be made in the raw materials
used. In one season a large amount of rayon might be used which
in another year might be supplanted largely by silk, worsted, or
mohair. At any one time a mill might be making several fabrics
of which one might be principally of rayon, another principally of
cotton, and still another principally of wool or mohair. More fre-
quently than not, a single fabric will be composed of two or more
fibers and it is not unusual for four or more fibers to be employed
in the making of a single piece of goods. This industry, for example,
is one of the few to employ the little known fiber, ramie, to any
extent.
(261)
262
Tlius, great confusion would be created if the industry should be
required to operate concurrently or intermittently under each of the
several textile codes, depending upon the predominant fiber in each
particular fabric produced. Furthermore, effective cooperation
would virtually be impossible.
Within recent years, mills commonly classified as cotton mills have
gone into the weaving of upholstery and drapery fabrics in order
to provide an additional outlet for their yarns or to utilize idle
loom equipment. A number of cotton mills have limited their par-
ticipation in this business to those periods in which there had been
but light demand for their other products.
Upholstery and drapery fabrics are divided into two broad types,
pile fabrics and flat fabrics. Flat fabrics used in this field are con-
structed on the same general principles as other textile materials.
However, the upholstery and drapery materials necessarily have a
much heavier body and more extensive and intricate designs and
colorings than almost any other group of textiles. A considerable
portion of both pile and flat fabrics are woven with jacquard ma-
chines and the looms in both divisions of the industry are almost
entirely of a width greater than 50 inches.
To manufacture pile fabrics, specialized types of looms are needed
which can weave only pile fabrics. Looms for the production of flat
fabrics in an upholstery and drapery mill are also specialized as they
are suitable only for the production of these more complex fabrics,
and are built for quality production, rather than quantity production.
As a practical matter, therefore, non-automatic shaft and jacquard
looms mainly are found in mills of this kind. One weaver to a loom
is customary in this industry and two or three looms to the weaver
is the practical limit, due to the close attention required for the pro-
duction of a complex fabric. Weavers of upholstery and drapery
fabrics are highly skilled operators and a topical worker must have
had and actually does have years of experience.
The industry is distinctive alsOj particularly in these days of mass
production and standardization, m that its products are highly spe-
cialized and any one fabric, weave or design is often produced in
relatively small quantities. An undetermined but important part of
total production is of special designs, originated for a predetermined
market and adapted to a definite use. The style life and demand for
such a material is very short and the manufacturing problems are
further complicated by style piracy, one of the greatest single prob-
lems of the industry and one which was stressed by the proponents
of the code as a vital reason for a code of their own.
Both drapery and upholstery materials must be styled to accord
with the constantly changing trends in furniture design and interior
decoration. Designs alone frequently cost as high as $500.00 to
$800.00 plus the cost of experimental runs in which the construction
and composition of the fabric, its design and color treatment, are
altered before the details of the final fabric are decided upon. Once
a fabric has been made, it is a simple matter for any other manufac-
turer to put the same or a similar fabric into production at prac-
tically no expense. Pirated designs in almost every case are repro-
duced in cheaper fabrics and sold at a price materially lower than
263
the ori^nal. Design piracy is an evil which this code and adminis-
trative machinery attempt to rem6ve.
Because of all these factors it is believed that the interests of all
mills in the textile industry will be most adequately served by the
Executive Order allowing mills to make a choice as to the particular
code under which they will operate. Mills commonly classified as
cotton mills or woolen mills, and now oi^erating under such a code,
may elect to continue operation under the basic provisions of that
particular code even though they produce a certain amount of fabrics
that meet the definition in this code. It is essential, however, that
mills electing to operate under another code, be bound, in their sell-
ing of upholstery and drapery fabrics, by the fair trade practices of
this code, namely, Article IX. This was objected to strenuously by
the Cotton Textile Institute. It was deemed necessary, for the pres-
ent, to overrule this objection. In this manner, the confusion of
operating one plant under several codes will be minimized, and yet
those who are primarily producers of these more intricate fabrics
will still have a code suited to their particular problems.
LABOR PROVISIOXS OF THE CODE
It is impossible to arrive at any estimates of reemployment that
would be secured by the operation of this code. Practically every
mill in this industry is now operating under either the cotton or the
wool code and consequently their operations are on the basis of iortj
(40) hours for employees and eighty (80) hours for looms. Previ-
ously, the full work week was forty-eight (48) hours in the majority
of the northern plants, but seasonal influences generally cut the work
week to a somewhat smaller figure. With only some 10,000 employees
in the whole industry, the figures for possil3le reemployment, even
from the low point, would not be very impressive.^ Also, it is
probable that estimates of reemployment in the textile field, as a
- whole, have already taken into account the upholstery and drapery
industry.
The minimum wage rates for the usual upholstery and drapery
mill are not a matter of great concern to either management or labor
because 80 percent to 90 percent of the operators are highly skilled
and already receive considerably more than the proposed scale.
Because competing mills will be bound by certain provisions of
this code, it is necessary that wage and hour provisions in the
Upholstery and Drapery Textile Industry conform with such pro-
visions in the basic textile industries, until such time as they may
be adjusted.
LOOM-HOUR LIMITATION
The code provides for a limitation of hours of machine operation
as a measure designed to stabilize employment and production. In
arriving at a basis for loom-hour limitation the sponsors of the code
first gave consideration to the number of looms available for eco-
nomical and effective use. The average demand for upholstery and
drapery fabrics during the last few years has been considerably less
than the capacity of the industry.
264
The loom-hour limitation clause is as follows : " No loom shall bo
operated for more than two shifts of forty (40) hours each per
week."
Strong objections to this provision were raised by a small group of
manufacturers who produce approximately 90 percent of the pile
fabrics used for upholstering automobiles. They contended that
there is no overproduction nor has there been any overproduction of
this class of pile fabrics. In particular, this group stressed that the
application of this provision would result in a curtailment of the
supply of automobile upholstery fabrics which would be reflected
in the production of automobiles and cause a lay-off of employees in
that industry. Certain automobile body manufacturers bore out this
statement.
The rest of the manufacturers in the industry, while admitting that
they themselves produced but a negligible amount of automobile pile
fabrics, advanced the thought that allowing unlimited operation on
automobile pile fabrics looms would cause unfair competition for two
reasons. First j there would result a natural reduction in overhead
costs to a few in the industry by reason of longer operation of ma-
chinery which would be reflected in the production costs of fabrics
made by these manufacturers for trades other than the automobile
industry. Secondly, the available looms which were potential pro-
ducers of these special fabrics were far in excess of the number
needed to supply the annual requirements of the automobile industry.
Logical and forceful cases were made by both sides in the contro-
versy and there was considerable merit in all the arguments advanced.
The industry was unable to reach a compromise and decided to leave
the final decision to the Administration. After weighing all the evi-
dence and giving careful consideration to the probable effects on this
industry, related industries, and the consumers of these fabrics, it was
felt that all looms should be restricted to two shifts of forty (40)
hours per week.
To give the industry opportunity to adjust its operations to this
schedule, a stay for 14 days of the machinery-hour limitation is
granted by Executive Order to those looms used for the exclusive
production of automobile pile fabrics.
ADMINISTRATION
The provisions for administration of this code are capable of
providing the N.R.A. and the Upholstery and Drapery Textile In-
dustry with sufficient data to make recommendations for the limi-
tation of certain provisions of the code as herewith presented and/or
the addition of further provisions of this code which would be
beneficial to tlie industry as a whole.
CONCLUSION
I find that the code complies in all respects with the pertinent
provisions of Title I of the National Industrial Recovery Act,
including, without limitation, subsection (a) of Section 7 and sub-
section (d) of Section 10 thereof.
265
The National Upholstery and Drapery Textile Association is truly
representative of the Upholstery and Drapery Textile Industry and
the by-laws of this Association provide no inequitable restrictions to
membership.
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.
Accordingly, I hereby recommend the approval of the Code of
Fair Competition for the Upholstery and Drapery Textile Industry,
Respectfully,
Hugh S. Johnson,
A dminis tratoT,
CODE OF FAIR COMPETITION
FOR THE
UPHOLSTERY AND DRAPERY TEXTILE 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 Upholstery and Drapery Textile In-
dustry, and shall be the standard of fair competition for this
industry.
Article II — Definitions
Section 1. The term "industry", as used herein, shall include,
without limitation as to materials used, the manufacture of up-
holsteiy and drapery woven pile fabrics and upholstery and drapery
fabric without pile made on 4 x 4 Box Broad Looms, with a design
requiring a jacquard machine having 600 hooks or more, requiring
two shuttles or more.
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
compensation.
Sec. 3. The term " employer ", as used herein, includes any one
for whom such an employee is so engaged.
Sec. 4. The term '^member of the industry", as used herein, in-
cludes any employer and/or enterprise in this industry.
Sec. 5. The' term " member of the code ", as used herein, means
any member of the industry who shall agree in writing as prescribed
in Section T, of Article VI.
Sec. 6. The term " President ", as used herein, means the President
of the United States of America.
Sec. 7. The term "Administrator ", as used herein, means the Ad-
ministrator appointed by the President under the National Indus-
trial Recovery Act.
Sec. 8. The term " Code Authority ", as used herem, means the
National Administrative Agency of the Upholstery and Drapery
Textile Industry as established in Section 1 of Article VI.
Sec. 9. The term " association ", as used herein, means the National
Upholstery and Drapery Textile Association or its successor.
Sec. 10. The term "learner", as used herein, shall include any
employee who has worked in the industry less than six weeks.
Article III — Houns
Section 1. No engineer, electrician, or employee working on a
repair shop crew or watching crew, shall be permitted to work more
than 40 hours per week, with a tolerance of ten percent; provided,
(266)
267
however, that in the case of emergency maintenance or emergency
repair work, involving breakdowns or protection of life or property,
the above maximum hours shall not apply ; and provided further
that all hours worked in excess of forty (40) hours per week shall be
compensated for at the rate of time and one third. Emergency
hours worked shall be reported monthly to the Code Authority pro-
vided for in Section 1 of Article VI.
Sec. 2. No office employee shall be permitted to work in excess of
forty (40) hours per week averaged over a twelve weeks' period, but
in no event in excess of forty-eight (48) hours in any one week.
Sec. 3. No other employee, except outside sales persons, and those
employed in a managerial capacity and earning in excess of $35.00
per week, cleaners, firemen, and those employed on shipping and
outside crews, shall be permitted to work in excess of forty (40)
hours per week ; provided, however, that the Code Authority herein-
after provided for in Section 1, of Article VI, shall recommend to
the Administrator on or before January 1st, 1934, the maximum
hours which cleaners, firemen, and those employed on shipping and
outside crews shall be permitted to work.
Sec. 4. No loom shall be operated for more than two shifts of
forty (40) hours each per week.
Sec. 6. Until adoption of further provisions of this Code that may
prove necessary to prevent any improper speeding up of work
(stretchouts), no employee shall be required to operate or attend
more machines or perform duties in addition to those prevailing on
July 1, 1933, unless such increase is approved by the Code Authority,
subject to review by the Administrator.
Article IV — Wages
Section 1. No employees, except learners, cleaners, and those em-
ployed on outside crews, shall be paid at less than the rate of 32^
cents per hour, provided, that in the southern section, no employee
except learners, cleaners, and those employed on outside crews, shall
be paid at less than the rate of 30 cents per hour.
The southern section as used herein shall include the states of
Virginia, North Carolina, South Carolina, Georgia, Florida, Ala-
bama, Mississippi, Tennessee, Kentucky, and West Virginia.
Sec. 2. No learner, cleaner, or employee engaged on an outside crew
shall be paid at less than 80% of the minimum wage rates herein-
above set forth in Section 1; provided, that learners, cleaners, and
those employed on outside crews shall not exceed 10% of the total
employees of each plant.
Sec. 3. No employee, whether paid on a time rate, piece work, or
commission basis, shall be paid less than the minimum rate per hour
of emplo3''ment prescribed in this Code.
Sec. 4. There shall be uniform wage rates for all shifts.
Sec. 6. To the extent practicable (a) rates of pay in excess of th«
minimum herein prescribed shall be increased so as to preserve equi-
table differentials and (b) earnings shall not be reduced by reason of
a reduction in hours.
268
Sec. 6. In determining the classification of employees under this
Code, each employee shall be entitled to claim the benefits of the
classification of occupation in the industry existing on June 16th,
1933.
Article V — Child Labor
Section 1. No person under 16 years of age shall be employed in
the industry. In any State an employer shall be deemed to have
complied with this provision if he shall have on file a certificate or
2:)ermit 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.
Article VI — Administration
Section 1. To further effectuate the policies of the National In-
dustrial Recovery Act, a Code Authority is hereby set up to cooper-
ate with the Administrator in the administration of this Code.
Such Code Authority shall consist of not less than 8 nor more than
11 members, 8 of whom shall be representatives of the Industry
elected by a fair method of selection to be approved by the Adminis-
trator, and 3 of whom without vote may be appointed by the Admin-
istrator. Such agency may present to the Administrator recommen-
dations based on conditions in the industry as they may develop
which will tend to effectuate the operation of the provisions of this
Code and the policies of the National Industrial Recovery Act.
Such recommendations, when approved by the Administrator, shall
have the same force and effect as any other provisions of this Code.
Sec. 2. Such Code Authority shall cooperate with the Administra-
tor in making investigations as to the functioning and observance of
any provisions of this Code, at its own instance or on complaint by
any person affected, and shall report the same to the Administrator.
Sec. 3. The Code Authority shall provide for the formation of a
committee for the administration of the provisions of Article IX of
this Code. Such committee shall include representatives of all trade
groups subject to the provisions of said Article. The Administrator
at any time may require such committee to give representation to
any such trade group in such manner as may be deemed equitable.
Sec. 4. Each employer shall furnish reports as hereinafter pro-
vided. The Association is hereby constituted the agency to provide
for the collection and receipt of such reports and for the forwarding
of the substance of such reports to the Administrator, the Associa-
tion to provide for receiving and holding such reports themselves
in confidence. Such reports shall be in such form, and shall be fur-
nished at such intervals as shall be prescribed by the Association,
subject to the approval of the Administrator, and shall contain such
information relevant to the purposes of this Code, as shall be pre-
scribed by the Association, subject to the approval of the Adminis-
trator, including information with respect to the following or related
subjects:
(a) Employment, hours, wages, and wage rates.
269
(b) Production, orders, filling, and stocks (in process and finished)
of products manufactured.
(c) Cost data.
(d) Activity, purchases, sales, and scrapping of machinery.
(e) Consumption and stocks of raw materials.
Sec. 5. Statistics disseminated to the industry by the Code Au-
thority shall be in the form of compilations and shall not disclose
statistics of individual plants.
Sec. 6. There shall be no inequitable restrictions imposed on mem-
bership in the Association.
Sec. T. Members of the industry who are complying with the re-
quirements 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 this code, and to pay their reasonable share
of the expense of administration thereof, shall be entitled to the
benefits of the activities of the Code Authority and to make use of
N.R.A. Code insignia.
Sec. 8. The reasonable share of the expense of administration of
the Code to be borne by the members of the code, shall be determined
by the Code Authority, subject to review by the Administrator, on
the basis of volume of business, and such other factors as may be
deemed equitable to be taken into consideration.
Seo. 9. In addition to the information required to be submitted
to the Code Authority, 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.
Article VII — Uniform Cost AccouNTiNa
Each member of the Code shall adopt uniform items in com-
piling the respective cost of production; and the Code Authority,
subject to the approval of the Administrator, may determine the
items which shall be included by each member of the code in deter-
mining his cost of production.
Article VIII — Unifgrm Sales Contracts and Order Blanks
The Code Authority, subject to the approval of the Administra-
tor, shall prepare a uniform sales contract for aU products of the
industry except fabrics sold to automobile manufacturers, which
shall be in accordance with law and with the provisions of this Code,
and which shall thereupon be used, in substance, by all members
of the industry. Tliis sales contract shall, in addition to other
provisions, contain:
(a) A provision that the price therein is F.O.B. Mill. It shall
also contain, in substance, such terms of this Code as are material
to any transaction between buyer and seller.
(b) A provision that in the event that that style, color, or other
specifications necessary to filling the order are not specified therein,
and the buyer shall decline to furnish such specifications at least
ten days before the respective shipping dates, the seller may, at his
option, complete the contract upon reasonable specifications.
270
(c) In addition to the foregoing, members of the Code shall in-
clude in such sales contract an agreement to arbitrate disputes aris-
ing therefrom in accordance with the then rules of the American
Arbitration Association.
Articles IX — Unfair Trade Practices
The following unfair trade practices are prohibited :
Section 1. Temns and Discounts. — Giving terms of discounts on
sales, which shall be in excess of net seventy days or 2% discount
for cash within ten days from actual date of shipment, plus 6%
per annum for actual anticipation; provided, however, tnat in the
case of fabrics sold to automobile manufacturers, such sale may be
made on a net basis, not to exceed an average of 30 days.
Sec. 2. Gratuities. — Paying gratuities by any member of the in-
dustry to purchasers or prospective purchasers, whether in the form
of money or merchandise, directly or indirectly.
Sec. 3. Selling on Consigninent. — Selling merchandise on memo-
randum or consignment.
Sec. 4. Returns. — Accepting for return, merchandise sold and de-
livered in due accordance and compliance with an order or contract,
or selling any merchandise on approval or with privilege of return,
or accepting or permitting the cancellation or modification as to price
and terms of any order or contract for merchandise not yet delivered.
Sec. 5. Saviples. — Giving samples of fabrics free of cost except
color swatches of patterns actually purchased, which shall be no
larger than 6" x 9" ; provided, however, that no more than six of any
color of any pattern shall be given to any customer in one season;
and provided, further, that larger bona fide samples may be sent
on memorandum to be returned within 30 days and if not so re-
turned, to be billed at the regular price. No allowance or discount
other than cash discount for merchandise sold is allowed for samples
to be used in sample books.
Sec. 6. Style piracy. — The Code Authority, subject to the approval
of the Administrator may provide for the definition and prevention
of style piracy. It may provide for the establishment of a central
bureau, to be made up or a committee, to be selected by the Code
Authority, subject to the approval of the Administrator, empowered
to receive and file novelty design and style registrations, to deter-
mine questions of style novelty and piracy, and to make reports
thereon to the Code Authority.
Sec. 7. Saies helau} cost. — No member of the Industry shall sell or
offer for sale any merchandise at a price less than the manufacturer's
cost of production to be determined by the method provided in
Article VII of this Code. The Code Authority, subject to the ap-
proval of the Administrator shall determine the dates upon which
the usual season for sale of merchandise ordinarily commences and
terminates, and shall provide a period during which members of
the Industry shall be exempt from the provisions of this section.
This date of sales shall be fixed so as to have as little effect as possible
on the ordinary sales market during any ordinary selling season.
271
Article X — General, Provisions
Section 1. No provisions of this Code shall be permitted to op-
erate in such manner as to promote or permit monopolies or monopo-
listic practices or to eliminate or oppress small enterprises or to
discriminate against them.
Sec. 2. 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, by 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 refrain from joining, organizing, or assisting a labor organization
of his own choosing.
Sec. 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.
Sec. 5. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions 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 President
to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
Sec. 6. The Code Authority shall study the provisions of this
Code and the operation thereof, and shall make to the administrator
such recommendations as it may deem desirable for modifications or
additions thereto, which recommendations, or modifications thereof,
upon his approval and after such hearings as he shall prescribe,
shall become a part of this Code and have full force and effect as
provisions thereof.
Sec. 7. Within each state, members of the industry shall comply
with any laws of such state imposing more stringent requirements
regulating licensing, the age, wages, or hours of work of employees,
than under this Code.
Sec. 8. It is contemplated that the cost of executing contracts both
of purchase and sale m the industry entered into prior to the enact-
ment of the National Industrial Recovery Act, or of the adoption of
this Code, may be increased by the application of the provisions of
the National Industrial Recovery Act that appropriate adjustments
of such contracts to reflect such increased costs be arrived at by
arbitral proceedings or otherwise, and the Code Authority is hereby
constituted an agency to assist in effecting such adjustments.
Sec. 9. Each employer shall post in conspicuous places full copies
of this Code.
Article XI
The effective date shall be the second Monday after this Code shall
have been approved by the President of the United States.
Approved Code No. 125.
Registry No. 280-1-01. -.
Approved Code No. 126
CODE OF FAIR COMPETITION
FOR THE
CHINAWARE AND PORCELAIN MANUFACTURING
INDUSTRY
As Approved on November 27, 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 chinaware and porcelain manufacturing 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
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 ot fair
competition be and is hereby approved.
FRANIvLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
A dministrator.
The White House,
November 27, 1933.
(273)
23775' 244-94 83
November 17,4933.
The President,
Ttte White House.
Sir: A public hearing on the Code of Fair Competition for the
Chinaware and Porcelain Manufacturing Industry, submitted by
the United States Potters Association and the American Vitreous
China Manufacturers Association, was conducted in Washington on
the 31st of August 1933 in accordance with the provisions of the
National Industrial Recovery Act. These associations claim to rep-
resent seventy -five percent (<5%) of the industry.
The maximum hours permitted under this code are forty (40) per
week. Watchmen and kiln firemen are allowed to work forty-two
(42) hours per week. In case of increased production, after using up
all available labor, provision is made for an appeal to the Admin-
istrator to grant an extension of hours.
The minimum wage is forty cents (40^) per hour for male em-
ployees and thirty-two cents (320) per hour for females. Special
provision is made that where females do the same work as males
they shall receive the same pay. Learners, who shall not exceed five
percent (5%) of the total number employed, are provided to be paid
not less than eighty percent (80%) of the minimum wage for a three
months' period.
The industry is fairly well unionized and the wage rates for the
skilled and semiskilled employees are fairly high. In face of the
serious foreign competition it is questionable whether any great
increase in labor costs will permit additional employment. In
fact, any move along that line will tend to still further reduce
employment.
The aggregate invested capital in the industry is estimated at about
forty million dollars in 1933, which represents a seventeen percent
(17%) decrease from forty-eight million dollars in 1928. Produc-
tion dropped about twenty -two percent (22%) from 1928 to 1933.
Sales dropped similarly, but much more severely, the 1933 sales
representing about half of the 1928 figures.
The drop in value of sales has been due not only to the depression
but perhaps more to the competition from foreign countries. In
spite of a tariff duty, foreign producers have lately been able to
undersell domestic prices because of lower labor costs and primarily
depreciated currencies. Needless to say American exports are prac-
tically nil, for domestic producers cannot compete against the low
foreign prices.
FINDINGS
The Administrator finds that:
{a) The code, as reconunended, complies in all respects with the
pertinent provisions of title I of the act, including, without limita-
(274)
275
tion subsection (a) of section 7, and subsection (h) of section 10
thereof; and tliat
(b) The United States Potters Association and the American
Vitreous China Manufacturers Association, the applicant groups
herein, impose no inequitable restrictions on admission to member-
ship and are truly representative of the Chinaware and Porcelain
Manufacturing 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.
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
solution for this industry, and its approval as herewith submitted is
recommended.
Respectfully,
Hugh S. Johnson,
A dniinis trat or.
CODE OF FAIR COMPETITION
FOR THE
CHINA WARE AND PORCELAIN MANUFACTURING
INDUSTRY
Abttclb I — Purposes
To effectuate the policies of Title I of the National Industry Re-
covery Act, the following provisions are submitted as a Code of Fair
Competition for the Chinaware and Porcelain Manufacturing In-
dustry, and upon approval by the President shall be the standard of
fair competition for such industry and shall be binding upon every
member thereof.
Abticlb II — Definitions
(a) The term " Chinaware and Porcelain Manufacturing Indus-
try " as used herein is defined to mean the manufacture of all prop-
erly glazed vitreous, vitrified, semivitreous or semivitrified china,
tableware, kitchenware, dinnerware, and kindred lines, except sani-
tary, including all processes for the production of such commodities
for general commercial resale ; earthenware, stoneware, or clay flower
pots, however, being hereby specifically excluded.
(5) The term "ware" shall be understood to mean any product
or merchandise manufactured by any member of the industry as
defined in paragraph (a) above.
(c) 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.
(d) The term " employer " as used herein includes any one by
whom such employee is compensated or employed.
(e) The term " member of the industry " includes any one engaged
in the industry, as above defined, either as an employer or on his
own behalf.
(/) The terms "Act" and "Administrator" as used herein shall
mean respectively the National Industrial Recovery Act and the
Administrator of said Act.
Article III — Hours
(1) The maximum hours of labor for employees shall be forty
(40) per week, subject to the following limitations and exceptions :
(a) The average hours worked per week by an individual em-
ployee shall not exceed the maximum established when figured over
a period of three (3) months, nor shall the daily maximum exceed
eight (8) hours per day, nor the weekly maximum forty-four (44)
hours in any one week; provided however that not less than time
(276)
277
and one third shall be paid for all hours in excess of forty (40) per
week, except as provided in paragraphs (&), (d), and (e).
(h) Watchmen and engineers may be employed in pairs and shall
work thirty-six (36) and forty-eight (48) hours on alternate weeks,
or not more than forty-two (42) hours per week averaged over any
period of two weeks.
(c) The maximum hours established shall not apply to executives
or supervisory staff receiving thirty-five dollars ($35.00) per week, or
more, nor to emergency repair crews or outside salesmen.
(d) For a period of sixty (60) days after the approval of this Code
by the President the maximum hours hereby established shall not
apply to tunnel kiln firemen, but thereafter shall prevail, and their
hours shall not be longer than forty -two (42) hours in any one week.
Other kiln firemen may be employed in pairs and shall work thirty-
six (36) and forty-eight (48) hours on alternate weeks, or not more
than forty-two (42) hours per week averaged over any period of two
weeks. It is expressly provided that all kiln firemen shall receive
one and one third time for all hours per week over forty-two (42)
when averaged as provided in this paragraph.
(e) In the event of unusual conditions legitimately requiring an
extension of hours, where it is impossible to meet the required pro-
duction with the available supply of labor, or in the event that a
reduction of hours is necessary to absorb existing imemployment,
members of the industry, through the Code Authority may request
the Administrator for such extension or reduction oi hours other
than those provided in this Code^ with such provisions for overtime
as the Admmistrator may prescribe.
Article IV — Wages
(a) The minimum wage that shall be paid by any employer in the
Chinaware and Porcelain Manufacturing Industry shall be forty
cents (40^) per hour for males and thirty-two cents (82^) per hour
for females, except that where females do the same work, as is cus-
tomarily done by males in this industry, they shall receive the Bame
pay.
(J) Employees who hire assistants and thus become employers in
fact, shall pay not less than the minimum wage as herein provided.
{c) Learners^ who shall have had no previous employment or
experience in this industry, shall be paid not less than eighty percent
(80%) of the minimum wage, and shall not exceed in any calendar
month five percent (5% ) of the total number of employees of such
employer. The learning period for such learners is hereby limited to
a three (3) months' period.
(d) All wages shall be paid in cash or by check of even date, within
six (6) days after the completion of the work period, which period in
no event shall be longer than sixteen (16) days.
(<?) 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
lorth, 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 fortn, by an equitable adjustment of all pay schedules.
278
AbTICLE V — GENEBAIi LaBOR PROVISIONS
1. Employers in the Chinaware and Porcelain Manufacturing
Industry shall not have in their employ any person under the age
of sixteen (16) years.
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 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 on employer regu-
lating the age of employees, wages, hours of work, 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 and keep posted in conspicuous places
full copies of the wage and hour provisions of this Code.
8. No employee shall work, or be permitted to work, for a total
number of hours in excess of the number of hours herein prescribed,
whether he be employed by one or more employers.
9. If any employer of labor in the Chinaware and Porcelain In-
dustry is also an employer of labor in any other Industry the pro-
visions of this Code shall apply to and affect only that part of his
business which is engaged in the manufacture of chinaware and
porcelain, as herein defined.
Article VI — Administration'
To further effectuate the policies of the National Industrial Re-
covery Act, a Code Authority for the Chinaware and Porcelain
Manufacturing Industrv is set up to cooperate with the Adminis-
trator as a planning and fair practice agency for the Chinaware and
Porcelain Manufacturing Industry.
1. Organization and Constitution of Code Authority.
(a) The Code Authority shall consist of three (3) members nomi-
nated by the United States Potters Association; three (3) members
nominated by the American Vitrified China Manufacturers Associa-
tion, to be approved and appointed by the Administrator, and in
addition thereto one (1) member to be nominated by the six (6) so
appointed, who shall be approved and appointed by the Adminis-
trator, and not more than three (3) members, without vote, to be
appointed at the discretion of the Administrator.
279
(h) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall submit to the Administrator true copies of its articles of asso-
ciation, 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.
(<?) 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, if upon such hearings, 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 take
such action as he deems necessary under the circumstances.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act, subject to the right of the
Administrator to disapprove or modify any action taken by the Code
Authority, to make effective the provisions of this Code and thereby
effectuate the purposes of the National Industrial Recovery Act.
(a) The Code Authority, with the approval of the Administrator,
shall have the power to require such reports from any member of the
industry as may be necessary, provided, however, that all statistics,
data, and information filed in accordance with this provision shall be
confidential and the statistics, data, and other information of one
employer shall not be revealed to any other employer except for the
purpose of administering or enforcing the provisions of this Code.
(h) The Code Authority, subject to the approval of the Adminis-
trator, may designate a Regional Committee for the Pacific Coast
and may delegate to such Regional Committee such of its powers and
authority as may be necessary for the Administration of this Code
within that region, including the right to submit to the Administra-
tor recommendations, applicable only to such region for amendments
of this Code.
3. No inequitable restrictions on admission to membership in the
United States Potters Association, or the American Vitrified China
Manufacturers Association, or any other trade association or organ-
ized 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 organized group,
upon compliance with the provisions of the by-laws relating to mem-
bership, 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 administration. Such menibers
of the industry who do not choose to become members of any trade
association or organized group may participate in the activities of
the Code Authority, as herein provided, by paying to the Code
Authority such proportionate part of the cost of code development
and administration as the Code Authority, subject to the Adminis-
trator's approval, shall prescribe as fair and equitable.
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 necessary for
280
the purposes recited In Section 8 (a) of the National Industrial
Kecovery Act.
Article VII — Trade Practices
1. Discontinued items and seconds:
(a) Discontinued lines of items may be disposed of in such manner
and upon such terms as tlie Code Authority shall approve; and if
6uch approval authorizes a sale below cost it shall not be deemed a
violation of this Code.
(h ) Semivitrified ware which ordinarily comes in the class of sec-
onds, thirds, or lump, as these t^rms are understood by the trade,
when it is decorated shall be stamped and fired " second selection.'
This shall apply to all ware of this character whether decorated by
the manufacturer or by any other person.
2. The following practices constitute unfair methods of competi-
tion for members of the Industry and are prohibited :
(a) No member of this Industry shall sell anjr products or mer-
chandise (except discontinued items as provided m section 1 {a) ) at
less than his individual cost; provided, however, that he may sell
below such cost in order to meet a competitive price or prices.
(&) Omission from the invoice of any element of value in con-
nection with the merchandise covered by the invoice, when the effect
of such omission will be to reduce the total price of merchandise.
{c) The payment or allowance of rebateSj secret or otherwise, re-
funds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or the extension to certain purchasers
of special services, including special advertising allowances of any
kind, or privileges not extended to all purchasers on like terms and
conditions.
{(l) Delivered quotations which do not include freight and pack-
age charges.
(e) No member of the Industry shall ship goods on consignment
except under contract or on bona-fide orders.
(/) Copying of prints or decalcomania or hand-painted patterns,
or shapes, of any American pottery of China manufacturers which
is a new and original design, and not an adaptation of a foreign
or domestic design. (This rule shall not apply to crests.)
(g) To make false and misleading remarks or statements with
regard to a competitor^ his employees, product, selling price, busi-
ness or financial standing.
(A) 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.
(i) To improperly or misleadingly use descriptive trade names
or terms.
{j) 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, c[uantity, 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-
281
wise, having the tendency or capacity to mislead or deceive cTSstomera
or prospective customers.
(k) Directly or indirectly to give, or permit to be given, or offer
to give, money or anything of value to agents, employees, or repre-
sentatives of customers or prospective customers, or to agents, em-
ployees, 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 pur-
chase or contract to purchase from the makers of such gift or offer,
or to influence such employers or principals to refrain irom dealing
or contracting to deal with competitors,
(Z) The offering or giving of prizes, premiums, or gifts in con-
nection with the sale of products, or as an inducement thereto, by
any scheme which involves Ictteryj misrepresentation, or fraud.
(m) The publishing or circularizing of threats or suits for in-
fringement of patents or trade marks or of any other legal proceed-
ings not in good faith, with the tendency or effect of harassing com-
petitors or intimidating their customers.
(71) 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.
{0) Nothing in this Code shall limit the effect of any adjudication
by the Courts or holding by the Federal Trade Commission on com-
plaint, 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 of this Code.
Article VIII — Modification
1. 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 (6) 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 conditions
imposed by him upon his approval thereof.
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 contemplated that
from time to time supplementary provisions of this Code or addi-
tional conditions will be submitted for the approval of the President
to prevent unfair competition in prices and other unfair destructive
and competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act.
Article IX — ISIonopolies, Etc.
No provision of this Code shall be applied so as to permit
monopolies or monopolistic practices, or to eleminate, oppress, or
discriminate against small enterprises.
282
Article X — Effective Date
This Code shall become effective on the tenth day after its
approval by the President.
Article XI — Addenda for Vitrified China Branch
1. The following provisions shall apply only to the Vitrified
China branch of the Industry :
(a) Each member shall use as a basis for his selling prices the
uniform white list and decorated list as now in use by the majority
of the industry or such lists, as they may be revised, at any future
time by the association, with the approval of the Administrator;
provided, howev^^r, that nothing in this Code shall be construed as
limiting the percentages which members of this industry may extend
to reduce or increase such prices quoted in the uniform lists, except
as limited by Article VII, Section 2 (a).
(h) Each manufacturer of Vitrified Hotel China shall, within
fifteen (15) days after the effective date hereof, file with the Code
Authority a price list and discount sheet, showing his current prices
and discounts and terms of payments. Any revision of such price
lists and discount sheets shall likewise be filed with the Code
Authority and be effective ten (10) days thereafter.
(c) No manufacturer of Vitrified Hotel China shall, directly or
indirectly by any method whatsoever, sell any product of the indus-
try covered by the provisions of this Article at a price lower or at
discounts greater than or on more favorable terms of payment than
on those provided in his current net price list or price lists and dis-
count sheets; and upon learning of any deviation therefrom, the
Code Authority shall notify any manufacturer who is selling at a
price lower than as provided for in this Article, that his action is a
violation and report the same to the Administrator for such action
as may be proper in the premises.
(d) Terms of sale shall be one per cent (1%) fifteen (15) days,
net thirty (30) days. With customers paying twice a month, one
percent (1%) discount shall be allowed on purchases from the six-
teenth to the thirty-first, if payment is made on or before the tenth
of the following month. On purchases from the first to the fifteenth
the same discount shall be allowed if paid for by the twenty-fifth
of the same month.
Article XII — Cost Accounting System
1. The Code Authority shall prepare, or cause to be prepared, ade-
quate cost accounting systems, capable of uniform application within
each branch of the Industry, and such cost accounting systems, when
approved by the Administrator, shall be the standard for both
branches of the Industry and no manufacturer may sell any of his
products below his cost, as determined by the cost accounting system
applicable to him, except as provided in Article VII, paragraphs 1
(a) and 2 (a).
283
(a) Pending the adoption and approval of cost accounting sys-
tems the Code Authority may call upon any member of either branch
of the Industry for verified cost figures.
Approved Code No. 126.
Registry No. 1033-1-01.
o
Approved Code No. 127
CODE OF FAIR COMPETITION
FOR THE
REINFORCING MATERIALS FABRICATING
INDUSTRY
As Approved on November 27, 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 Reinforcing Materials Fabricating 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 reconunendations and findings with
respect thereto, and the Administrator leaving 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, provided that the following
be added as section 8 of article V of the code.
"The Board of Directors shall have the powers and duties elsewhere
provided in this code, subject to the right of the Administrator, on
review, to disapprove or modify any action taken by the Board of
Directors."
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Ad7ninistrator.
The White House,
November 27, 19S3.
23776" 244-95 33 (285)
November 11, 1933.
To the Peesident,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Reinforcing Materials Fabricating Industry as revised after public
hearing conducted in Washington on October 23, 1933, in accordance
with the provisions of the National Industrial Recovery Act.
THE INDUSTRY
This Industry developed from a group of specialist engineering
organizations which twenty-five or thirty years ago were engaged in
developing and promoting the use of reinforced concrete construction
in this country. During the following years the members of the In-
dustry have given much time and energy to the technical develop-
ment of reinforced concrete construction. The public has greatly
benefitted by the activities of the Industry in promoting new prod-
ucts and types of construction and will no doubt continue to do so as
long as the Industry functions along these specialized lines.
PROVISIONS FOR HOURS AND WAGES
Except in the case of executives, those employed in supervisory
capacities and in technical work and their respective stafl's receiving
more than $35.00 per week, truck drivers and those employed^ in
emergency work, employees in the Reinforcing Materials Fabricating
Industry are limited to an average of not more than 40 hours per week
in any six months' period or more than 48 hours or six days in any
one week.
In the case of truck drivers or their helpers, the maxirnum hours of
employment shall not exceed those prevailing in any district under
any union agreement or regulation.
No reclassification of employees for the purpose of defeating the
purpose of the Act is permitted, and no employee is permitted to
work more than the specified maximum hours whether for one or
more employers.
No person under 16 years of age is permitted to work in the industry,
and no person under 18 years of age shall be employed in hazardous
work.
The wage district and the hourly rates of pay for common labor in
these districts are in exact accord with the Steel Code. There is an
interchange of employees between mills and fabricating plants. If
labor costs were increased under this Code, as compared to the Code
for the Steel Industry, it seems quite clear that the small fabricators
would be placed at a competitive disadvantage with respect to the
large steel producers who operate fabricating plants for reinforcing
materials in connection with their other steel-mill operations.
(286)
287
ECONOMIC EFFECTS OF THE CODE
The Industry at present is operating at about 20% of the 1928
volume, when" employees numbered about 6,000. The present
number of employees is about 47% of the number employed during
that period, or about 2,800. By imposing the limitations of hours per
week as proposed by the Code, it is estimated that a 60% operation
of the Industry would require 100% of the number employed by the
Industry in 1928, or an increase of about 3,200 employees. When
the Public Works program gets fully under way, a 60% operation
is expected.
It develops that the wage scale proposed under the Code has been
in effect since September 1st under an approved substitution in the
President's Reemployment Agreement, and represents an increase
averaging roughly 20% over previous average rates.
FINDINGS
I find that: . .
(a) Tliis Code comphes in all respects with the pertinent provisions
of Title I of the Act, including without limitation subsection (a) of
Section 7 of subsection (b) of Section 10 thereof; and that
(b) The Concrete Reinforcing Steel Institute imposes no inequit-
able restriction on admission to membersliip therein, and is truly
representative of the Reinforcing Materials Fabricating Industry,
and that .
(c) The Code is not designed to promote monopolies or to eliminate
or oppress small enterprises, and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I of the
National Recovery xict.
RECOMMENDATION
I hereby recommend the approval of the Code of Fair Competition
for the Reinforcing Materials Fabricating Industry.
Respectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
REINFORCING MATERIALS FABRICATING INDUSTRY
Article I — Definitions
Wherever used in this Code or in any schedule appertainbig hereto
the terms hereinafter in this Article defined shall, unless the context
shall otherwise clearly indicate, have the respective meanings herein-
after in this Article set forth. The definition of any such term in
the singular shall apply to the use of such term in the plural and
vice versa.
Section 1. The term "the United States" means and includes all
of the territory of the United States of America on the North American
continent.
Sec. 2. The term "the President" means the President of the
United States of America.
Sec. 3. The terms "Reinforcing Materials Fabricating Industry"
and the "Industry" mean the business in the United States of selling
reinforcing materials together with both the maintenance of a ware-
house stock of such materials to serve the needs of the territory in
which the warehouse is located and the operation of a plant or plants
equipped with adequate machinery for at least one of the following
purposes:
(a) The fabrication of reinforcing bars or spirals, or
(b) The manufacture of road strip, or accessories for reinforced
concrete work, or
(c) The manufacture or conditioning of all types of permanent or
removable forms for concrete joist floors or round columns or of
removable metal forms for floor slabs in buildings.
Sec. 4. The term "reinforcing materials" means reinforcing bars,
spirals, road strip, accessories for reinforced concrete work, all types
of permanent and removable forms for concrete joist floors and round
columns, and removable metal forms for floor slabs in buildings, wire
mesh sold in conjunction with such materials, and expansion joints
including accessories directly related to the installation thereof only
when sold together with any of the preceding materials named in this
section, and erection, engineering and other services rendered in con-
junction with the sale of such materials.
Sec. 5. The terms "fabrication" or "fabricating" mean the cutting
reinforcing bars to specified length, bending reinforcing bars, manu-
facturing of spirals, bimdling, tagging, assembling, or processing,
stocldng or warehousing of any reinforcing materials, and the manu-
factiu-e of road strip, reinforced concrete accessories and all types of
permanent and removable forms for concrete joist floors and round
columns and removable metal forms for floor slabs in buildings.
(288)
289
Sec. 6. The term "services" means services rendered in connec-
tion with sales of reinforcing materials and includes cutting to speci-
fied lengths, shipments from warehouse, fabricating, engineering,
trucking, erection of reinforcing materials and all other services which
are at any time rendered by a member of the Industry or directly or
indirectly procured or arranged for by any member of the Industry
in connection with any reinforcing material.
Sec. 7. The term "member of the Industry" means and includes,
without limitation, any person, firm, association, corporation, or
other entity engaged in the Industry in the United States.
Sec. 8. The term "the Code" means and includes this Code and
all schedules annexed hereto as originally approved by the President
and all amendments hereof and thereof made as hereinafter in Article
XVII provided.
Sec. 9. The term "member of the Code" means any member of
the Industry who shaU have become a member of the Code as here-
inafter in Article III provided.
Sec. 10. The term "the Institute" means the Concrete Reinforc-
ing Steel Institute, an Illinois corporation not for profit, or any
successor corporation.
Sec. 11. The term "the Board of Directors" means the Board of
Directors (as from time to time constituted) of the Institute.
Sec. 12. The term "the Secretary" means the secretary of the
Institute at the time in office.
Sec. 13. The term "the Treasurer" means the treasurer of the
Institute at the time in office.
Sec. 14. The term "unfair practice" means and includes any act
described as an unfair practice in Article VIII.
Sec. 15. The term "plant" means a plant for the fabrication of,
or a warehouse for stocking one or more reinforcing materials.
Sec. 16. The term "prices" means prices for reinforcing materials
sold, and prices for all types of forms for concrete joist floors and
round columns or removable metal forms for floor slabs in buildings
leased in the Industry, or for services rendered.
Sec. 17. The term "purchaser" means the purchaser of reinforcing
materials or the lessee of all types of forms for concrete joist floors
and round columns or removable metal forms for floor slabs in build-
ings or the person for whom any services are rendered.
Sec. 18. The terms "selling" or "sale" mean the selling or sale of
one or more reinforcing materials, or the leasing thereof.
Sec. 19. The term "employee" means an employee engaged in
any phase of the Industry.
Sec. 20. The term "lump sum" means a total sales price for one
or more reinforcing materials.
Sec. 21. The term "base price" of any reinforcing material means
the price for such reinforcing material f.o.b. a basing point, before
any extras shall be added or any discounts for early payment or
deductions shall be allowed or made.
Sec. 22. The term "period of free credit" means the period of
time between the date of the invoice of a reinforcing material or the
rendering of a service to the purchaser of such reinforcing material
or service, and the date from and after which such purchaser shall
be required to pay interest on the purchase price of such reinforcing
290
material or service or any part thereof which shall not have been
paid prior to the expiration of such period.
Sec. 23. The term "date of invoice" means the date of the invoice
of any reinforcing material.
Sec. 24. The term "discount for early payment" means the
amount of the deduction allowed for the payment of an invoice of
reinforcing materials before the expiration of the period of free credit
in respect thereof.
Sec. 25. The terms "Act" and "Administrator" mean the National
Industrial Recovery Act and the Administrator of Title I of said
Act.
Sec. 26. The term "the effective date of the Code" means four-
teen (14) days after the date on which the Code shaU have been
approved by the President pursuant to the National Industrial
Recovery Act.
Article II — Purpose of the Code
Section 1. The Code is adopted pursuant to Title I of the National
Industrial Recovery Act.
Sec. 2. The purpose of the Code is to effectuate the policy of
Title I of the National Industrial Recovery Act in so far as it is
applicable to the Industry.
Article III — Membership in the Code
Section 1. It is of the essence of the Code that all members of
the Industry shall comply with the provisions of the Code and shall
be entitled to participate in its benefits.
Sec. 2. Any member of the Industry is eligible for membership
in the Code.
Sec. 3. Any member of the Industry desiring to become a member
of the Code may do so by signing and delivering to the Secretary a
letter substantially in the form set forth in Schedule A attached
hereto.
Sec. 4. The rules and regulations in respect of meetings of members
of the Code and of the Institute are set forth in Article XVI.
Article IV — Hours of Labor, Rates of Pay, and Other Condi-
tions OF Employment
Section 1. Pursuant to subsection (a) of Section 7 of the National
Industrial Recovery Act and so long as the Code shall be in effect, the
Code shall be subject to the following conditions:
(1) That employees shall have the right to organize and bargain 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 collec-
tive 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.
291
Sec. 2. The provisions ■\\ath respect to hours of labor, rates of pay,
and other conditions of employment, set forth in Schedule B annexed
hereto, are hereby incorporated in and made a part of this Code; pro-
vided, however, that such provisions with respect to hours of labor,
rates of pay, and other conditions of employment shall not apply to
labor engaged in the erection of reinforcing materials. The hours,
wages, and conditions of Labor provided in the separate erection code
which shall hereafter be approved shall apply to the erection activities
of fabricators who engage in the erection of reinforcing materials.
Article V — Administration of the Code
Section 1. The administration of the Code shall be under the
direction of the Board of Directors. The Board of Directors shall
have all the powers and duties conferred upon it by the Code and
generally all such powers and duties as shall be necessary or proper
to enable it fully to administer the Code and to effectuate its purpose.
Sec. 2. The Secretary shall act as Secretary under the Code.
Under the direction of the Board of Directors, he shall keep all books
(except books of account) and records under the Code and, except as
such Board shall otherwise provide, shall collect, file, and collate all
statistics and other information required by the Board of Directors
for the proper administration of the Code.
Sec. 3. The Treasurer shall act as Treasurer under the Code and,
under the direction of the Board of Directors, he shall have custody
of, and have charge of the disposition of, all funds collected under the
Code; and he shall keep proper books of account showing the collec-
tion and disposition thereof.
Sec. 4. The Board of Directors shall have power from time to time
(a) to appoint and remove, and to fix the compensation of, all such
other officers and employees and all such accountants, attorneys, and
experts, as said Board shall deem necessary or proper for the purpose
of administering the Code and (b) to fix the compensation of the
Secretary and the Treasurer for their services in acting under the
Code.
Sec. 5. The expenses of administering the Code shall be appor-
tioned among all the members of the Industry receiving the benefits
of the Code or its administration in the following manner; the Board
of Directors may from time to time make such assessments on account
of such expenses and reserves against the members of the Industry
as it shall deem proper and such "assessments shall be payable as such
Board shall specify. The part of such expenses and reserves which
shall be assessed against each member of the Industry shall be based
on the proportion which the value of shipments of reinforcing materials
of such member bears to the total value of shipments of reinforcing
materials of all mem.bers of the Industry in the same current account-
ing period as determined by the Board of Directors.
Sec. 6. No inequitable restrictions shall be imposedaipon member-
ship in the Institute or its successor and no material changes shall be
made in the Constitution and/or By-Laws without the approval of
the Administrator.
Sec. 7. The Administrator may appoint not to exceed three meni-
bers, without vote, to serve ^^^th the Board of Directors in its admin-
istration of this Code. Such members if and when appointed shall
23776° 244-95 33 2
292
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.
The expenses and compensation of such representatives shall not be
included as an expense of the administration of the Code.
Sec. 8. The Board of Directors shall have the powers and duties
elsewhere provided in this code, subject to the right of the Adminis-
trator, on review, to disapprove or modify any action taken by the
Board of Directors.
Article VI — Prices and Terms of Payment
Section 1. None of the members of the Industry shall make any
sale or lease or render any service in connection therewdth of any
reinforcing material at a price or on terras and conditions more favor-
able to the purchaser than the price, terms, or conditions estabhshed
by such member in accordance mth the provisions of this Article and
in effect at the time of such sale or lease; nor, except as otherwise
provided in this Article, shall any member of the Industry make any
contract, sale, or lease \^'ith respect to any reinforcing materials at a
price or on terms, and conditions more favorable to the purchaser
thereof than the price, terms, and conditions established as aforesaid
and in effect at the time of the making of such contract.
Sec. 2. The following places shall be the basing points for rein-
forcing bars and spirals and shall be used and adhered to by each
member of the Industry in publishing his base prices and in the sale
of such reinforcing materials, except as may be othermse provided
from time to time by the Board of Directors, or by the Administrator:
Pittsburgh, Pennsylvania
Buffalo, New York
Cleveland, Ohio
Chicago, Illinois
Garj^j Indiana
Birnnngham, Alabama
Youngstown, Ohio
Gulf Ports (Consisting of Mobile, Ala.; Nev/ Orleans, La.;
and Orange, Port Arthur, Beaumont, Baytowm, Galveston,
and Houston, Texas)
Pacific Coast Ports (Consisting of San Pedro, Calif.; San
Francisco, Calif.; Portland, Oregon, and Seattle, Wash-
ington)
All other reinforcing materials shall be sold on the basis of basing
points or zones filed by the members of the Industry wnth the Secre-
tary and approved by the Board of Directors.
Sec. 3. Each member of the Industry shall, not later than the
effective date of the Code, file with the Secretary a list showing the
prices for all his reinforcing materials (including all services and all
extras), and from and after such time such member shall at all times
maintain on file with the Secretary a list showing the prices for all his
reinforcing materials and shall not make any change in such prices
except as provided in this Article. The Board of Directors may pre-
scribe the form to be filled out by the members of the Industry in
filing their individual lists of prices with the Secretary. Each such
list shall state the date upon which it shall become efl'ective, which
date shall be not less than ten days after the date of filing such list
with the Secretary; provided, however, that the first list of prices
293
filed by any member of the Industry as above provided shall take
effect on the effective date of the Code. None of the prices shown in
any list filed by any member of the Industry as herein provided shall
be changed except by the filing by such member with the Secretary
of a new list of its prices, which shall become effective on the effective
date therein specified, which shall not be less than ten days after the
date on which such new price list shall have been so filed, except as
provided in Section 11 of this Article. All prices shown in the list so
filed shall constitute the published prices of such member for the rein-
forcing materials and for the basing points and zones shown in such
list. Lists of prices filed with the Secretary pursuant to this Section 3
shall be open to inspection at all reasonable times by anyone.
Sec. 4. Except as otherwise provided in tliis Article of the Code, all
prices quoted and billed by any member of the Industry for any rein-
forcing materials sold by such member from and after the effective
date of the Code shall be dehvered prices, which in the case oi any
reinforcing material sold by zones shall be the dehvered price includ-
ing all extras throughout the apphcable zone, and in the case of rein-
forcing bars and spirals shall be not less than the sum of (a) the
published base prices of such member for such reinforcing materials
effective at the time of the sale thereof and (b) the pubhshed extras of
such member for such reinforcing materials effective at the time of
sale thereof and (c) the all-rail pubhshed tariff freight charges from the
basing point on wiuch such base price is based to the place of dehveiy
to the purchaser thereof, or, if such place of dehvery shall be at such
basing point, the pubhshed tariff switching charges to such place of
dehveiy from the plant at such basing point nearest in terms of such
switching charges, to such place of dehvery; provided, however, that
in any case in which such reinforcing bars and spirals shall be delivered
by other than all-rail transportation, the member of the Industry
selling such reinforcing materials may allow to the purchaser a reduc-
tion in the dehvered price otherwise chargeable under this Section at
a rate which shah have been previously pubhshed, and after approval
by the Board of Directors, filed with the Secretary; and provided
further that any member of the Industry may ahow to any dealer who
is a mem.ber of the Code a discount from any such hst of prices or a
commission to any agent to or thi'ough whom such member shaU sell
such reinforcing material provided such member shall have complied
with the provisions of Section 5 and 6 of tliis article. Reinforcing
material may be sold to a dealer at a dealer's discount only when
purchased by such dealer for resale.
Sec. 5. Any quotation, contract of sale or sale made by any agent
for a member of the Industry shall be made in the name of such mem-
ber of the Industry by such agent.
Sec. 6. Each member of the Industry shaU file with the Secretary
five davs before the effective date of the Code and thereafter maintain
on file "a fuh, correct and up-to-date list of the names and addresses
of ah dealers, agents or other persons to whom such member allows,
pays, or is under contract to pay any discount, commission, bonus or
other compensation based on the volume or value of reinforcing mate-
rials sold, except salaried employees devoting their fuU worldng time
to the service of any member of the Industry which wdll directly or
indirectly permit any such person to acquire reinforcing materials at
other than the current price listed by such member as in this article
294
provided. The names and addresses of all such dealers, agents, or
other persons shall be so placed on file not less than tv/enty (20) days
before any member of the Industry shall sell any such dealer, agent
or other person at any such discount, except that any member of the
Industry may sell any dealer, agent, or other person whose name and
address shall have been so placed on file five daj^s prior to the effective
date of this Code. Such member shall also list and maintain %vith
the Secretary a full, correct and up-to-date list of the rates or amoimta
of all such discounts, commissions, bonuses and other compensation
as specified in the preceding sentence paid to each such person. All
such lists so filed shall bo open to the inspection of any member of the
Industry at any reasonable time. The Board of Directors shall have
power to determine if any such discounts, commissions, bonus or other
remuneration has been or may be used as a means of effecting a depar-
ture from any published price of such member and if the Board of
Directors shall so determine, it may require any member of the Code
to modify any such discount, commission, bonus or other compensation.
Each such decision shall be subject to review by the Administrator
and to his disapproval in whole or in part. No contract or arrange-
ment for the payment of any discount, commission, bonus or other
compensation referred to in this Section other than contracts or
arrangem^ents in effect on the effective date of the Code shall become
eft'ective until ten (10) days after the filing hereinbefore provided
except that contracts or arrangements in effect at the time of the ap-
proval of this Code by the President shall be filed as herein provided
at least five days prior to the effective date of the Code.
Sec. 7. The Board of Directors shall have power on its own initia-
tive, or on the complaint of any mem.ber of the Industry, to investigate
any price for any reinforcing material shown in any list filed with the
Secretary by any member of the Code, and for the purpose of the
investigation thereof to require such m.ember to furnish such pertinent
information concerning the cost of fabricating, handling, and selling
Buch product as the Board of Directors shall deem necessary or proper
for such purpose. If the Board of Directors after such investigation
shall determine that such price is an unfair price for such reinforcing
material, having regard to the cost of manufacturing, handling, and
selling such reinforcing material, and that the maintenance of such
unfair price w^ill result in unfair competition in the Industry, the
Board of Directors may require the member of the Code that filed
the list in which such unfair price is shown to file a new list showing a
fair price for such reinforcing material, which fair price shall become
effective immediately upon the filing of such list. If such member
of the Code shall not within ten days after notice to it of such deter-
mination by the Board of Directors file a new list showing such fair
price for such reinforcing material, the Board of Directors shall have
power to fix a fair price for such reinforcing material, which fair price,
however, shall not be more than the price of any other member of
the Code at that time effective for such reinforcing material and in
respect of which the Board of Directors shall not theretofore have
begun an investigation or a complaint shall not have been made by
any member of the Industry. When the decision of such Board
fixing such fair price shall have been filed with the Secretary and the
Secretary shall have given notice thereof to such member, such fair
price shall be the price of such member for such reinforcing material
295
until it shall have been changed as in the Code provided. A notice
of all decisions of the Board of Directors under this Section 7, together
with the reasons therefor, shall be filed mth the Administrator, and
each such decision shall be subject to his disapproval in whole or in
part.
Sec. 8. Except as in Section 9 of this Article of the Code otherwise
provided, the maximum rates of discount for early payment and the
maximum periods of free credit which may be allowed by any member
of the Industr}^ shall be the rates and periods specified in Section 9
of tliis Article unless and until such rates or such periods shall be
changed by the Board of Directors by the affirmative vote of two-
thirds of the whole Board and filed with the Secretary. Except as
aforesaid, all invoices for reinforcing materials sold by any member
of the Industry after the effective date of the Code shall bear inter-
est from and after the expiration of the period of free credit at a
rate which shall be not less than the then current rate established by
the Board of Directors and filed with the Secretary. Nothing in the
Code contained shall prevent any member of the Industry from allow-
ing credit to any purchaser or allomng any purchaser to delay pay-
ment in respect of any invoice for a longer period than the maximum
period of free credit specified in Section 9 of this Article; but, if any
member of the Industry shall allow credit to any purchaser or allow
an}' purchaser to delay payment in respect of any invoice for a period
longer than such maximum period of free credit, then such member
shall charge and collect interest on the amount in respect of which
credit shall be so allowed or the payment of which shall have been so
delayed at a rate not less than the current rate established and filed
as aforesaid.
Sec. 9. Maximum rates of discount for early pa5'ment shall be as
follows: (except for erection or removal services) one half of one per-
cent (K of 1%) if the invoice of such reinforcing materials shall be
paid within ten (10) days from the date of such invoice; provided,
however, in the latter cases, that any member of the Industry may
allow such discount of one half of one percent (% of 1%) for payment
within ten (10) days on the basis of settlements three (3) times in
each month, as follows:
(a) On invoices for reinforcing materials dated from the 1st to the
10th, inclusive, in any month, such discount may be allowed on
payment of such invoices on or before the 20th of such month;
(b) On invoices for reinforcing materials dated from the 11th to
the 20th, inclusive, in any month, such discount may be allowed on
payment of such invoices on or before the 30th day of such month;
(c) On invoices for reinforcing materials dated from the 21st to the
end of any month, such discount may be allowed on payment of such
invoices on or before the 10th of the next following month.
Any discount allowed in accordance with the provisions of this
Ai'ticle shall apply only to the invoiced value of the reinforcing
materials specified or service rendered therein and not to any part of
the transportation charges on such products.
All reinforcing materials shall be invoiced on terms of net cash
within 30 days from date of invoice — except where the sale of such
products call for their erection and/or removal, in which case the
terms of payment shall be on a net monthly estimate basis as follows:
On or before the last of each calendar month an estimate shall be
296
made by the seller of the value of material and work performed.
85% of such estimate shall be paid on or before the 15th of the
follo^^^llg month. The balance of such estimate shall be paid within
30 days after substantial completion of the work covered by the
seller's contract.
Sec. 10. For all purposes of this Article, a delivery of any rein-
forcing material made pursuant to a contract of sale shall be regarded
as a sale thereof made at the time of the making of such contract.
Except in the case of reinforcing material required for a specified
definite project, none of the m-cmbers of the Industrj^ shall make any
contract of sale of any reinforcing material by the terms of which
the shipment of or rendering any service in connection with such
reinforcing material is not required to be completed before the end of
the calendar quarter-year ending not more than four months after
the date of the making of such contract.
Sec. 11. Any member of the Industry may change liis published
prices by filing mth the Secretary in the manner hereinbefore pro-
vided, to become effective in less than ten days after such filing in
order to equal the prices published by any other member of the
Industry on the effective date of such prices.
Sec. 12. In the event of an increase in the published prices of any
member of the Industry, such member may make a contract of sale
at his published price in effect prior to such increase, provided such
member shall have filed \\'ith the Secretary on or before the effective
date of such increase a copy, in such form as may be required by the
Board of Directors, of a provisional contract with the purchaser.
Such provisional contract shall require the purchaser to purchase the
reinforcing materials covered by such contract within thirty (30)
days (except where the requirements of governmental invitation to
bid call for a longer period) after the effective date of such increase in
published prices and use such reinforcing materials in the construction
of an identified project, in the event such purchaser shall be awarded
the contract under a bid whereby such purchaser is obligated to a
third party if the bid is accepted.
Sec. 13. Each member of the Industry shall publish size extras and
trucldng charges. Such rates may be revised from time to time by
the Board of Directors with the approval of the Administrator to
conform with the trade practice customary in the Industry.
Sec. 14. A sale made by any member of the Industry through any
agent or other company or person affiliated with or representing such
memxber shall be deemed to be a sale made by such member.
Sec. 15. Nothing in this Article contained shall be deemed to apply
to or affect the sale of any reinforcing material for direct shipment in
export trade by any member of the Industry v^dthin the meaning of
the term "export trade" as it is used in the Export Trade Act or,
unless and to the extent that the Board of Directors shall otherwise
determine, the sale of any product by any such member for direct
shipment to the Philippines, Hawaii, or Puerto Rico or other insular
possessions of the United States of America.
Sec. 16. All contracts for reinforcing materials shall be in WTiting
and all verbal orders or sales calling for more than one shipment shall
be immediately confirmed in writing.
297
Article VII — Estimating Bureaus
Section 1. Each member of the Industry submitting a lump sum
bid on a specified project where the total value of all the reinforcing
materials on such project is over three hundred dollars ($300.00) lo-
cated in a district in which a quantity Estimating Bureau has been
established or approved by the Board of Directors shall purchase an
estimate of quantities of reinforcing materials required on such project
from such Bureau. Each member of the Industry selling reinforcing
materials in such district shall deposit a copy of his individual current
price list currently applicable in such district wdth such Bureau, and
such Bureau shall apply the price lists of the individual member of
the Industry to the various items and kinds of reinforcing materials
included in the Bureau's estimate on any specified project, and such
quantity estimate so priced shaU be used by the individual member in
submitting his lump sum bid on any specified project.
Sec. 2. No member of the Industry shall guarantee any quantity
or lump sum price on a project in a territory where an Estimating
Bureau has been established or approved by the Board of Du'ectors
except the quantity or lump sum price secured by such member from
a Bureau established or approved by the Board of Directors.
Sec. 3. No member of the Industry shall quote any "average unit
price" where the approximate total value of all the reinforcing mate-
rials on such project is over three hundred dollars ($300.00) on a proj-
ect in a territory where an Estimating Bureau has been established
or approved by the Board of Du-ectors unless the quantity estimate
on which such average unit price is based has been secured by such
member for the project or order in question from an Estimatmg Bureau
established by or approved by the Board of Directors. Wherever
a member of the Industrj^ sells on a unit price, he shall not guarantee
any lump sum or quantit)^.
Sec. 4. "When quoting to a purchaser, no member of the Industry
shall revise the design or speafications or request an alternate or
revised estimate from any Estimating Bureau except in the event
of a material structural change approved as such by the appropriate
local Estimating Bureau.
Sec. 5. For any specified territory, upon the complaint of any
member of the Industry, or upon its o^vn initiative the Board of
Directors may issue a ruhng changing the minimum specified limit
above which the purchase of a quantity estimate is required in accord-
ance Anth the provisions of tliis Ai-ticle VII from the value of tlu'ee
hundred dollars ($300.00) for the total value of all the reinforcing
materials on a project as set forth in Sections 1 and 3 of tliis Article
VII, if, in the opinion of the Board of Directors, the maintenance of
such hmit would disrupt the normal course of business in any specified
territory or work undue hardsliip upon the members of the Industry
operating in such territory. All such rulings and decisions of the
Board of Directors shall be published immediately by the Secretary
to all members of the Industry and shall become effective not less
than ten days after the date of such publication by the Board of
Directors.
Sec 6. Each approved Estimating Bureau shall maintain on file
a copy of the summary of each quantity estimate together ^\^.th any
extensions thereof, made by it wliich shall be open for examination
298
by any member of the Industry only after a contract has been closed
for the sale on a lump sum basis of the materials called for by the
respective estimate.
Article VIII — Unfair Practices
Section 1. For all purposes of the Code the following acts shall
constitute unfair practices nnd shall be deemed to be unfair methods
of competition in commerce within the meaning of the Federal Trade
Commission Act as amended, and the using or employing of any of
them shall be deemed to be a violation of the Code, and any member
of the Industry which shall directly, or indirectly through any officer,
employee, agent, or representative, use or employ any of such unfair
pra.ctices shall be guilty of a violation of the Code.
(a) Making or promising to any purchaser or prospective purchaser
of any reinforcing material, or to any officer, employee, relative, agent,
or representative of any such purchaser or prospective purchaser or to
any governmental employee or representative, any bribe, gratuity,
gift, or other pa5^ment of remuneration, directly or indirectly.
(b) Procuring, otherwise than with the consent cf any member of
the Industry, any informiation concerning the business of such member
with knowledge that such information is properly regarded by it as
a trade secret or confidential within its organization, other than
information relating to a violation of any provision of the Code.
(c) Imitating or simulating any design, style, mark, or brand used
by any other member of the Industry.
(d) Using or substituting any material superior or inferior in
quality to that specified by the specifier and purchaser of any rein-
forcing miaterial or using or substituting any material or any method
of manufacture not in accord with any applicable law, rule, or regula-
tion of any governmental authority.
(e) Cancelling in whole or in part, or permitting the cancellation
in whole or in part of, any contract of Saie of any reinforcing material,
except for a fair consideration.
(f) Paying or allowing or offering to any purchaser in connection
with the sale of any reinforcing material any rebate, commission,
credit, discount, adjustment or similar concession other than as is
permitted by the Code and specified in the contract of sale.
(g) Disseminating, publishing, or circulating any false or misleading
information relative to any reinforcing material or price for any
product of any member of the Industry, or the credit standing or
ability of any member thereof to perform any work or fabricate or
produce any reinforcing material, or to the conditions of employment
among the employees cf any member thereof.
(h) Inducing or attempting to induce by any means any party to
a contract with a member of the Industry to violate such contract.
(i) Aiding or abetting any person, firm, association, or corporation
in an}'^ unfair practice.
(j) Making or giving to any purchaser of any reinforcing material
any guaranty or protection in any form against decline in the market
price of such reinforcing material.
(k) Stating in the invoice of any reinforcing material as the date
thereof a date later than the date of shipment of or the rendering of
299
any service in connection with such reinforcing material, or including
in any invoice any reinforcing material shipped or service rendered on
a date earlier than the date of such invoice. In the case of lump-sum
contracts, the invoices of partial shipments or services shall be at
least proportionate to the shipments or services rendered.
(1) Making any sale or contract of sale of an}^ reinforcing material
under any description which does not fully describe such reinforcing
material in terms customarily used in the Industr}^.
(m) Rendering to any person any engineering or other service in
connection with any reinforcing material unless compensation shall
be made for such service at the published rate of the renderer.
(n) Making any misrepresentation as to the quality, quantity,
origin, or other material condition of any reinforcing material or
service.
(o) Where different reinforcing materials or other materials are
contracted for sale or bid on at the same time or for the same job,
failure to separately itemize each different kind and class of reinforcing
material or failure to state the kind and quality or grade of such
material, provided that lump-sum prices may be quoted on reinforcing
bars and spirals including fabricating, engineering, and transportation
charges and these materials and services shall be deemed of the same
kind and class.
(p) Submission of more than one bid or quotation whether verbal
or written to any purchaser or prospective purchaser on any specified
material on a definite project except in the event of a material change
in the plans and/or specifications of the project, and except in the
event of a decrease in the published prices of the producers of the raw
material in question notification of which shall have been given by
the Secretary to the Industry or in the event of a change in the pub-
lished price of any other member of this Industr}^. Nothing in this
rule shall be deemed to prevent a member of the Industry from cor-
recting any typographical or other unintentional mistake provided
that notice of any such correction shall first be given to the Secretary.
(q) Acceptance of any form of paper or security in payment at
more than the true value thereof.
(r) Any offer or agreement to finance any purchaser of reinforcing
materials other than the extension of credit for materials sold by the
member of the Indiistr}^ extending such credit.
(s) The shipment of any foreign steel not marked in accordance
with the requirements of the Treasury Department of the United
States, wdth the full name of the country of origin on each piece,
provided, however, that this rule shall not be applicable to stocks
of foreign steel in the possession of or owned by members of the In-
dustry at the effective date of the Code and listed with the Secretary
on or before such date, who shall also be notified of all shipmenta
from such stocks and the date they are exhausted.
(t) Entering into contracts for reinforcing materials without actual
obligation on the part of the buyer to purchase any specific quantity
for delivery within a specified time, or for any particular job or jobs.
(u) Making the acceptance of a separately priced nonreinforcing
material in a quotation or the maldng of another quotation for a
nonreinforcing material contingent upon the acceptance of a quota-
tion for reinforcing materials.
23776° 244-95 33 3
300
(v) To ship or receive reinforcing materials on consignment or
enter into any agreement, subsequent to the effective date of the
Code, which would result in the shipment of reinforcing materials on
consignment.
(w) To render or secure inspection services (except regular mill
test reports or retests after rejection) at other than the actual and
customary rate charged for such inspection by established inspection
organizations.
Article IX — Reports and Statistics
Section 1. The Board of Directors shall have power from time to
time to require each member of the Industry to furnish to the
Secretary, in confidence, such information concerning the reinforcing
materials production, shipments, sales, and unfilled orders of such
member and the hours of labor, rates of pay, and other conditions of
employment at the plant or plants of such member and such other
information as the Board of Directors shall deem necessary or proper
in order to effectuate the purpose of the Code and the policy of Title I
of the National Industrial Recover}^' Act. The Board of Directors
may require that any such information be furnished periodically at
such times as it shall specify and maj^ require that any or all informa-
tion furnished be sworn to or otherwise certified or authenticated as
it shall prescribe. Failure of any member of the Industry promptly
to furnish to the Secretary information required by the Board of
Du'ectors and substantially in the form prescribed shall constitute a
violation of the Code. The Board of Directors shall not require any
information regarding trade secrets or publication of the names of the
customers of any member of the Industry. In the case of members of
the Industry rolling reinforcing bars, the Board of Directors shall
have no authority to call for information relative to any mill operation
prior to the time that reinforcing bars leave the hot beds.
Sec. 2. Any or all information furnished to the Secretary by any
member of the Industry shall be subject to checking for the purpose
of verification by an examination of the books and accounts and
records of such member by any disinterested person or persons
mutually agreed upon by the Board of Directors and the member
of the Industry whose books and accounts and records are to be
examined or by a person or persons nominated by the Board of
Directors and approved by the Administrator. The cost of each
such examination shall be treated as an expense of administering the
Code; provided, however, that, if upon such examination any such
information shall be shown to have been incorrect in any material
respect, such cost shall be paid by the member of the Industry which
furnished such information.
Sec. 3. To the extent that any information furnished to the Secre-
tary in accordance \vith the provisions of the Code is of confidential
character, such information shall be treated by the Secretary as
strictly confidential; and no publication thereof to anyone or in any
manner shall be made other than in combination with similar infor-
mation of the Industry in which case the publication shall be made
only in such manner as wdll avoid the disclosing separately of such
confidential information.
301
Sec. 4. In addition to information required to be submitted to the
Board of Directors, there shall be furnished to the Administrator such
statistical information as he may require pursuant to the provisions
of Section 3 (a) of the National Industrial Recovery Act.
Article X — Backcharges
Section 1. No backcharges or other refund or allowance of a claim
of any purchaser shall be granted or paid by any member of the
Industry if the purpose or effect thereof is to effect a secret or discrim-
inatory allowance, or a discount from any published price.
Sec. 2. A statement of each backcharge, refund or allowance for
claim granted or paid by any member of the Industry shall be filed
with the Secretary as may be required by the Board of Directors.
Article XI — Reinforcing Materials Produced Below
Established Employment Conditions
Section 1. On any complaint of any violation of this Article
accompanied by a prima facie showing of such violation, the Board
of Directors may require the party complained of to assume the bur-
den of showing that such reinforcing material was produced or
fabricated at hours of labor, rates of pay and other conditions in
accordance with the applicable Code.
Article XII — Services
Section 1. Where any member of this Industry renders, procures
or arranges for, directly or indirectly, any service whatsoever in
connection with the sale or contract for sale of any reinforcing ma-
terial, such member of the Industry must publish his prices, file them,
and adhere to all conditions hereinbefore set forth as applying to
reinforcing materials, as if the sale of such services were in fact the
sale of reinforcing materials.
Article XIII — Standard Practice and Form of Contract
Section 1. — The Rules of Standard Practice attached hereto as
Schedule C, subject to such modifications as may be made from time
to time by the Board of Directors shall control the interpretation of
plans, specifications, and contracts.
Sec. 2. All contracts entered into by any member of the Industry
for the sale of reinforcing materials and any quotations thereof shall
contain the provisions of the Standard Form of Contract attached
hereto, as Schedule D, subject to such modifications as may be made
from time to time by the Board of Directors.
Article XIV — Penalties and Damages
Sec. 1. Recognizing that the violation by any member of the
Industry of any provision of the Code will disrupt the normal course
of fair competition in the Industry and cause serious damage to other
members of the Code and that it may be difficult fairly to assess the
302
amount of such damage to any member of the Industry or the public,
it is hereby agreed by and among all members of the Code that each
member of the Code who shall violate any such provision shall unless
otherwise specified by the Board of Directors pay to the Institute
as and for liquidated damages the simi of $10.00 per ton of any rein-
forcing material or twenty percent (20%) of the entire sales price
of any contract for sale of reinforcing materials, whichever is the
larger, sold or contracted for sale by such member in violation of any
such provision.
Sec. 2. Upon the complaint of any member of the Code that any
act of any member of the Code constitutes an unfair practice under
the Code, the Board of Directors may provide for the investigation,
hearing and decision of such complaint through such committee, im-
partial tribunal or otherwise as it may from time to time determine
and except as otherwise in this Article provided the Board of Directors
or such committee or other tribunal may assess such Hquidated dam-
ages or other penalty or take such other action to refer the complamt
to the American Iron and Steel Institute or any committee or tribunal
established by such Institute as it may deem necessary or desirable
in order to effectuate the pohcy of Title I of the National Industrial
Recovery Act or the provisions of this Code.
Sec. 3. All amounts so paid to or collected under this Article shall
be used by the Institute for the more effective Administration and
application of the Code and may be applied in the reduction of the
assessments pro rata, of all members of the Code hereinbefore pro-
vided for.
Sec. 4. Each member of the Industry who makes appncation to
become a member of the Code shall agree with every other member
that the Code constitutes a vaUd and binding contract by and among
all members of the Code and that, in addition to all penalties and
liabihties imposed by statute, any violation of any provision of the
Code by any such member thereof shall constitute a breach of such
contract and shall subject the member guilty of such violation to
Uability for liquidated damages pursuant to the provisions of the
Code.
Sec. 5. Anything in the Code to the contrary notwithstanding,
the Board of Directors by the afi&rmative vote of two thirds of the
whole Board may waive any Uability for Hquidated damages imposed
by or pursuant to any provision of the Code for any violation of
any provision thereof, if in its discretion it shall decide that such
violation was innocently made and that the collection of such dam-
ages mil not to any material extent tend to effectuate the pohcy of
Title I of the National Industrial Recovery Act.
Article XV — General Provisions
Section 1. Any notice, demand, or request required or permitted
to be given to or made upon any member of the Industry shall be
sujB&ciently given if mailed postage prepaid addressed to such meniber
at the address of such member on file with the Secretary. A waiver
in writing signed by any member of the Industry of any such notice,
demand or request and dehvered to the Secretary shall be deemed to
be the equivalent of a notice, demand, or request duly given or made,
whether or not such waiver was signed and dehvered before the time
303
when such notice, demand, or request was required or permitted to
be given or made.
Sec. 2. Nothing contained in the Code shall be deemed to con-
stitute the members of the Code or of the Industry partners for any
purpose. None of the members of the Code or of the Industry shall
be liable in any manner to anyone for any act of any other member
of the Code or of the Industry or for any act of the Board of Directors,
the Treasurer, or the Secretary, or any committee, officer or employee
appointed under the Code.
Sec. 3. Pursuant to subsection (b) of Section 10 of the National
Industrial Recovery Act, the President may from time to time cancel
or modify any order, approval, license, rule, or regulation issued
under Title I of said Act.
Sec. 4. Any action taken by the Board of Directors for the purpose
of maldng effective the provisions of the Code shall be reported to the
Administrator.
Article XVI — Membership Meetings and Voting Power in the
Institute
Section 1. Every member of the Industry who shall become a
member of the Code in the manner provided for in Article III and
who shall not be in default in the payment of any assessment or the
observance of any provision of the Code shall be a member of the
Institute.
Sec. 2. A meeting of members of the Institute may be called and
held at any time by order of the Board of Directors, or by members
of the Institute having the right to cast at least 50% of all the votes
that might be cast at such meeting, if all the members of the Institute
were present thereat, or not less than six days' notice to each of such
members stating the time and place of such meeting and the purposes
thereof.
Sec. 3. At each meeting of the members of the Institute, each
member thereof shall have as many votes as shall equal the quotient
obtamed by dividing by 100,000 the aggregate amount in dollars of the
invoiced value of the reinforcing materials delivered by such member
for consumption within the United States during the preceding cal-
endar year. Fractions in such quotient shall be disregarded; pro-
vided, however, that each member of the Institute shall have at least
one vote. All questions as to the number of votes which each member
of the Institute shall be entitled to cast at any meeting of the members
thereof shall be determined in such manner as may be provided by the
Board of Directors. Any person or firm who shall be a member of the
Institute may, and any association or corporation which shall be a
member of the Code shall, vote at meetings of the members of the
Institute by proxy in writing duly executed by such member and filed
with the Secretary. Such proxy shall not be effective for more than
one specified meeting or any adjournment thereof.
Sec. 4. At each meeting of the members of the Institute, members
thereof present in person or by proxy having the right to cast at
least fifty percent (50%) of all the votes that might be cast at such
meeting, if all the members of the Institute were present thereat, shall
constitute a quorum for the transaction of business at such meeting
304
but less than a quorum may adjourn any meeting untU such time as a
quorum is present. . ...
Sec. 5. The Board of Directors shall at aU times mamtam its rep-
resentative character as the governing body of the Industry. If at
any time any member, members, or division of the Industry shall, as
the result of any provision of the Code or any interpretation thereof
or decision thereunder, be deprived of its or their fair representation
in the governing body of the Industry (on the basis of the invoice
values in this Article set forth), the Board of Directors shall make such
further provision in order that the governing body shall at all times
be truly representative of the Industry. For this purpose the Board
of Directors shall provide for such amendments to the Bylaws of the
Institute or for the creation of a new or enlarged code authority as may
be necessary or desirable to constitute the governing body of the In-
dustry truly representative of all members and divisions of the Indus-
try. Such new or enlarged code authority shall have all the powers
and be subject to all the obUgations set forth in the Code with respect
to the Board of Directors.
Article XVII— Amendments — Termination
Section 1. The Code may be amended at any time in the manner
hereinafter provided. The changing of any Schedule hereto or the
addition hereto of any new Schedule shall constitute an amendment
of the Code. All amendments shall be proposed by the Board of
Directors by vote of the majority of the members thereof at the time
in office. Each amendment so proposed shall be submitted to a meet-
ing of the members of the Institute which shall be called for such pur-
po'se upon notice given in accordance with the provisions of the Code.
If at such meeting at least 75% of all the votes cast at such meeting
shall be in favor of the adoption of such amendment, such amendment
shall be submitted by the Board of Directors to the President for
approval, if approval thereof by him shall then be required by law.
Every such amendment shall take effect as a part of the Code upon
the adoption thereof by the members of the Code as above provided
and the approval thereof by the President, if approval thereof by him
shall be required as aforesaid. Any member of the Industry may
recommend amendments of the Code to the Board of Directors or to
the Administrator.
Sec. 2. Upon the termination of the Code all obhgations and lia-
bilities under the Code shall cease, except those for unpaid assess-
ments theretofore made in accordance with the provisions of the Code
and those for hquidated damages theretofore accrued under any pro-
vision of the Code.
Approved Code No. 127.
Registry No. 1118—08.
SCHEDULE A
FoKM OP Letter op Assent to the Code
To the Secretary of Concrete Reinforcing Steel Institute, _
SS3 North Michigan Boulevard, Chtcago, llunoxs.
Dear Sir: The undersized desiring to become a member of the Code of Fair
Competition of the Reinforcing Materials Fabricating Industry, a copy of which
is annexed hereto marked Annex A, hereby assents to all of the provisions of said
Code (hereinafter referred to as the Code), and, eEfective as of the date on which
the Code shall have been approved by the President of the United states or
America as therein provided, or as of the date on which this letter shall have
been delivered, if delivery thereof shall have been made subsequent to the date
on which the Code shall have been approved by said President a,s aforesaid,
by the sianinf- and delivery of this letter becomes a member of the Code and eflec-
tiVe as aforesaid herebv agrees with every person, firm, association and corpora-
tion who shall then be or thereafter become a member of the Code, that the
Code shall constitute a valid and binding contract between the undersigned and
all such other members. , ^ , . . x-i -4.4.^
For all purooses of the Code, the address of the undersigned, until written
notification of change shall be filed with you, shall be as set forth at the foot of
this letter.
Very truly yours,
Name of Company.
Name of officer.
Address.
(305)
SCHEDULE B
Hours of Labor, Rates op Pat and Other Conditions Of Employment
Section 1. Except in the case of executives, those employed in supervisory
capacities and in technical work and their respective staffs receiving more than
$35.00 per week or over, truck drivers, and those employed in emergency work
involving breakdowns or requiring the protection of life or property and so long
as employees qualified for the work required shall be available in the respective
localities where such work shall be required, none of the members of the Industry
shall cause or permit any employee to work at an average of more than 40 hours
per week in any six months period, or to work more than forty-eight (48) hours
or more than six (6) days in anj' one week. For the purposes of this Section 1
the first six months period for each employee in the employ of any member of
the Industry at the effective date in the Code shall begin with that date, and the
first six months period for any emploj^ee thereafter employed by any member
of the Industry shall begin with the date of employment of such employee by
Buch member. After the date of the employment by any member of the Industry
of any employee such member shall not knowingly permit such employee who
also shall have performed work for one or more other employers to work for such
member such number of hours as would result in a violation of the Code, had all
such work been performed for such member.
Sec. 2. None of the members of the Industry shall employ in or about its plants in
the Industry any person under 16 years of age and no one under 18 5'ears shaU be
employed on hazardous work. Within each state, members of the Industry shall
comply with any laws of such state imposing more stringent requirements regu-
lating the age of employees, wages, hours of work or health, fire, or general working
conditions, than under the Code.
Sec. 3. For the purposes of this Schedule the wage districts described in Sec-
tion 5 of this Schedule B have been established.
Sec. 4. Until changed by amendment of the Code as hereinbefore in Article
XVII provided, the minimum rates of pay per hour which shall be paid by mem-
bers of the Industry for common labor in the Industry in the respective wage
districts described in such Section 5 shall be the rates set forth in Section 6 of this
Schedule B. None of the members of the Industry shall pay common laborers
in its employ in the Industry in any such districts any rate of pay less than the
rate specified for such district in Section 6, and any violation of this provision of
the Code shall be deemed an unfair practice. Such rates of paj' shall not, how-
ever, be understood to be the maximum rates of pay for their respective districts;
but, until changed as aforesaid, none of the members of the Industry' shall be
required to pay its common laborers in the Industry in any of such districts a
rate of pay higher than the rate specified for such districts in Section 6, except as
such member shall have agreed to pay such higher rate in any agreement hereto-
fore or hereafter made by such member with its employees. Until this provision
shaU have been changed bj' amendment as aforesaid, each member of the Industry
will pay to each of its employees in the Industry who on July 14th, 1933, was re-
ceiving a rate of pay per hour in excess of the rate of pay per hour then being paid
by such member for common labor a rate of pay per hour which shall be at least
15% greater than that which such employee was then receiving; provided, how-
ever, that the foregoing provision shall not be so construed as to require any mem-
ber 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 which shall be higher than the rate of pay per hour paid to em-
ployees doing substantially 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 se?h provisions. In the case of employees per-
forming work for which they are paid per piece of work performed, the minimum
rate of pay which each member of the Industry shall pay such employee for such
work shall, at the average production rate of anj' such employee, produce at least
the minimum rate of pay per hour provided in this Code for the same class of labor
at such plant.
(306)
307
Sec. 5. The description of the wage districts is as follows:
1. Eastern District. — Comprises that part of the United States which is north
of the State of Virginia and east of a line drawn north and south through the
most easterly point of Altoona, Pennsylvania; that part of the State of Mary-
land which is west of such line; and the Counties of Monogalia, Taylor, Preston,
Randolph, Tucker, Pendleton, Grant, Mineral, Hardy, Hampshire, Morgan,
Berkley, Marion, and Harrison in the State of West Virginia.
2. Johnstown District. — Comprises Cambria County and the City of Altoona in
the State of Pennsylvania.
3. Pittsburgh District. — Comprises the Counties of Warren, McKean, Forest,
Elk, Clarion, Indiana, Somerset, Westmoreland, Fayette, Greene, Washington,
Allegheny, Beaver, Butler, Armstrong, and Jefferson, and that remaining part
of the State of Pennsvlvania which is west of a line drawn north and south
through the most easterly point of Altoona, except the parts which are included
in the Eastern Johnstown, and Youngstown Valley Districts and including that
part of the County of Clearfield west of such line.
4. Youngstown Valley District. — Comprises the Counties of Lawrence, Mercer,
Crawford, and Venango in the State of Pennsylvania, and the Counties of Trum-
bull, Mahoning, and Columbia in the State of Ohio.
6. North Ohio River District. — Comprises the cities along the Ohio River north
of the City of Parkersburg, West Virginia, and the Counties of Belmont, Harrison,
Monroe, and Jefferson in the State of Ohio, and the remainder of the State of West
Virginia which is not included in the Eastern and South Ohio River Districts.
6. Canton, Massillon, and Mansfield District. — Comprises the remainder of the
State of Ohio which is not included' in the Cleveland, Youngstown Valley, Detroit-
Toledo, North Ohio River, and South Ohio River Districts.
7. Cleveland District. — Comprises the Counties of Ashtabula, Geauga, Lake
Cuyahoga, and Lorain in the State of Ohio.
8. Buffalo District. — Comprises that part of the State of New York west of a
line drawn north and south through the most easterly point of Altoona, Penn-
sylvania and Erie County in the State of Pennsylvania.
9. Detroit-Toledo District. — Comprises the Counties of Seneca, Wood, Huron.
Sandusky, Ottawa, Williams, Fulton, Henry, Defiance and Lucas, in the State of
Ohio, and the State of Michigan.
10. South Ohio River District. — Comprises the State of Kentucky, the City of
Parkersburg, West Virginia, and cities along the Ohio River south of said City,
the Counties of Guernsey, Muskingum, Jackson, Noble, Washington, Morgan,
Athens, Meigs, Vinton, Gallia, Lawrence, Scioto, Adams, Brown, Clermont,
Hamilton, and Butler in the State of Ohio, and the County of Wood in the State
of West Virginia.
n. Indiana-Illinois-St. Louis District. — Comprises all the State of Indiana,
except the County of Lake; all the State of Illinois, except the Counties of Lake
and Du Page and the Chicago Switching District; all of the State of Missouri
except Jackson County; all of the State of Wisconsin except the Counties of
Milwaukee, Racine, and Kenosha; and the State of Iowa.
12. Chicago District. — Comprises the Chicago Switching District; the Counties
of Lake and Du Page in the State of Illinois; the County of Lake in the State of
Indiana; and the Counties of Kenosha, Racine, and Milwaukee in the State of
Wisconsin.
13. Southern District. — Comprises all that part of the United States south of
the States of Maryland, West Virginia, Kentucky, Missouri, Kansas, and Colo-
rado and south and/or east of the State of New Mexico, but does not include the
County of Jefferson in the State of Alabama.
14. Birmingham District. — Comprises the County of Jefferson in the State of
Alabama.
15. Kansas City District. — Comprises the County of Jackson in the State of
Missouri, and the States of Kansas and Nebraska.
16. Duluth District. — Comprises the States of Minnesota, South Dakota, and
North Dakota.
17. Colorado District. — Comprises the State of Colorado.
18. Utah District. — Comprises the State of Utah.
19. Seattle District. — Comprises the States of Washington, Oregon, Idaho,
Montana, and Wyoming.
20. San Francisco District. — Comprises the counties of Monterey, Kings,
Tulare, Fresno, Madera, Mariposa, Tuolumne, and Alpine in the {State of Cali-
fornia, and all of the State of California north of these counties and that portion
of the State of Nevada north of a line drawn due east from the intersection of
the Mono County, California line and the Nevada State lino.
308
21. Los Angeles District. — Comprises the counties of Inyo, Mono, San Luis
Obispo, and Kern, in the State of California, and all of the State of California
south of these counties, that portion of the State of Nevada south of a line drawn
due east from the intersection of the Mono County, California line, and the
Nevada State line, and the States of Arizona and New Mexico.
Sec. 6. The minimum rates of pay, as noted in previous sections of this
Schedule, shall be as follows:
DISTRICT Cents per Hour
1. Eastern District 35
2. Johnstown District 37
3. Pittsburgh District 40
4. Youngstown Valley District 40
5. North Ohio River District 40
6. Canton, Massillon, and Mansfield District 37
7. Cleveland District 40
8. Buffalo District 38
9. Detroit-Toledo District 40
10. South Ohio River District 37
11. Indiana-IUinois-St. Louis District 37
12. Chicago District 40
13. Southern District 25
14. Birmingham District 27
15. Kansas City District 35
16. Duluth District 37
17. Colorado District 40
18. Utah District 39
19. Seattle District 38
20. San Francisco District 37
21. Los Angeles District 35
Sec. 7. In the case of truck drivers or their helpers, the maximum hours of
employment shall not exceed those prevailing in any district under any labor
agreement or regulation.
Sec. 8. All employers shall post complete copies of the labor provisions of this
Code in conspicuous places accessible to employees.
Sec. 9. A person whose earning capacity is limited because of age or physical or
mental handicap may be employed on light work at a wage below the minimum
established by this Code if the employer obtains from the State Authority desig-
nated 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.
Each employer shall file with the Code Authority a list of all such persons em-
ployed by hijai.
SCHEDULE C
{Part D
Rules op Standard Practice
i purpose
1. Scope. — The practices and customs contained in these Rules are in accord-
ance with good engineering practice, tend to insure safety in reinforced concrete
construction and are standard within the Industry. The Rules are made a part
of every contract entered into between the Buyer and Seller of reinforcing steel
and related materials unless specific provision to the contrary is made.
2. Application. — The Rules of Standard Practice are to govern as a sta,ndard
in those cases where the provisions of building codes, architects' and engineers'
plans and specifications, or contracts are not complete or clear. There shall be
no conflict between these Rules and any legal building regulations; these Rules
shall only supplement and amplify such laws.
II ENGINEERING SERVICE
3. Types. — In no way is the engineering service rendered by the Seller intended
to displace the necessary work of arc»aitects and consulting engineers. The
engineering assistance rendered by the Seller has for its object making more
speedy and more economical the handling of reinforcing steel and related products;
To that end the type of engineering service falls into one of the three following
classes of contracts:
(a) List. — (Bar lists only). Where the architect's plans or engineer's drawings
are sufficiently complete to serve as placing plans, the engineering service of the
Seller wiU be Umited to that of preparing bills of bent and straight bars only.
(b) Detail. — (Details and bar hsts.) Where the architect's plans or engineer's
drawings show the complete design but are not in sufficient detail to constitute
working drawings, the engineering service of the Seller wiU consist in preparing
detailed placing plans, showing the number, size, length, mark, location, and bend-
ing diagrams for all reinforcing steel, together with bills of bent and straight bars
as in I 1-3- (a).
(c) Design. — (Design, details, and bar lists.) Where the architect's plans do
not show the structural design, the engineering service furnished by the Seller is
to include the preparation of a design in accordance with "Tentative Building
Regulations for Reinforced Concrete", as adopted jointly with the American
Concrete Institute and promulgated by the Concrete Reinfo/cing Steel Institute
except as may be modified by local building code restrictions or by such standard
recommendations for reinforced concrete design as the architects' specifications
may designate. In addition to furnishing the structural design, the Seller will
provide detailed placing plans, together with bills of bent and straight bars as in
II— 3— (b).
4. Responsibility. — Each proposal involving engineering service on the part of
the Seller shaU specify which of these three types is included. No responsibility
can be assumed by the Seller for the correctness of structural designs or dimen-
tions furnished by others. The Seller's plans are intended merely to supplement
the architectural and structural plans and are to be used only in conjunction
with them.
Ill ESTIMATING
5. General. — Where the design is complete, and full details of all bends, dimen-
sions, quantities, etc., are provided, estimates are to be taken off in conformity
with the details shown. Where such full information is not available, the follow-
ing rules will be used as a basis for the estimate. Where the word "joist" is used
in this section, it is intended also to include members sometimes referred to as
"ribs."
(309)
310
6. Hoohs. — No hooks or bends are to be estimated on the ends of bars except
where shown on the plans or called for in the specifications.
(a) LonQitudinal Bars or Truss Bars. — Where the design requires hooks at the
ends of longitudinal bars or truss bars, a length of bar equal to fifteen (15) bar
diameters shall be allowed for the semicircular hook and straight end beyond the
point of tangency of the hook. The hook is to have an outside diameter of
approximately eight bar diameters. The straight end beyond the hook is to
have a length of approximately three inches (3")- A 90° bend of equivalent
length may be substituted for the above hook if placing conditions require.
(b) Stirrups.- — -Hooks on stirrups are to be six inches (6") in length.
(c) Column Ties. — Hooks on column ties are to be four inches (4") in length.
7. Dimensions. — Lengths of bars are to be estimated to the nearest three
inches (3").
(a) Beams and Slabs. — Straight longitudinal bars in beams, joists, or slabs are
to extend six inches (6") into the support, but need not extend beyond the center
of support, except where required for compression at the support.
Truss bars in continuous construction are to extend into the adjacent span to
a point one fourth ()4) of the center-to-center span length beyond the center of
support, plus full allowance for inclined portions. On noncontinuous ends, truss
bars are to extend to within three inches (3") of the outer faces of members into
which they frame.
Where the ratio of over-all depth to span, center-to-center of supports, is not
greater than one to ten (1 to 10), in continuous beams and slabs of approximately
equal spans and carrying uniformly distributed loads, the lower points of bend
of truss bars are to be at points approximately one fourth OQ of the center-to-
center span from the centers of supports, and the angle of bend is to be approxi-
mately forty-five degrees (45°). The ends of the bar are to be detailed as required
above.
Bars provided for furnishing additional compression area in a beam reinforced
for compression are to have a length equal to three fourths (%) of the center-to-
center distance between supports. When a beam is reinforced for compression,
vertical ties are to be estimated as not less than one-fourth inch 04") round bars
spaced eight inches (8") center-to-ceuter and distributed over the middle half
of the length of compression steel.
(b) Columns. — Column bars are to extend from floor to floor plus a lap of
twenty-four (24) bar diameters, but not less than eighteen inches (18"). Column
bars for the top story are to stop at a point three inches (3") below the top of
roof slab.
Column bars are to be estimated as bent bars on all faces where the face of
the next column above is offset two inches (2") or more from the face of the
column section being considered.
(c) Footings. — Footing bars are to extend to within three inches (3") of the
Bides or ends of footings.
(d) Dowels. — Dowels are to be not less than forty-eight (48) bar diameters but
not less than thirty-six inches (36") in length.
(e) Spirals. — Where less than four (4) beams frame into columns, spirals are
to extend from the top of lower floor slab to within three inches (3") of the floor
slab above.
Where four (4) beams frame into columns, spirals are to extend from the top
of lower floor slab to the under side of shallowest beam framing into the column
above.
Where flat slabs are supported by columns, spirals are to extend from the top
of lower floor slab to the under side of dropped panel above, or to the under side
of floor slab above, if no dropped panel is used.
The out to out diameter of spirals is to be three inches (3") less than the
outside diameter of the column.
(f) Column ties. — The out to out dimensions of column ties are to be three
inches (3") less than the outside dimensions of the column.
(g) Stirrups. — The out to out width of stirrups in beams ten inches (10") or
more in width is to be three inches (3") less than the widtii of the beam.
The out to out width of stirrups in beams less than ten inches (10") in width,
but heavier than joists in ribbed floors, is to be two inches (2") less than the width
of the beam.
The out to out width of stirrups in joists in ribbed floors is to be one and one
half inches (1}^") less than the width of the rib.
8. Temperature reinforcing. — Where no temperature reinforcing is called for,
none is to be estimated. Where temperature reinforcing is called for but no
amount shown, it is to be estimated as one fourth inch {%") round bars spaced
311
twelve inches (12") center to center, or their equivalent in bars of larger area,
spaced not more than eighteen inches (18") center to center. The minimum
area will, however, be satisfactory in all cases.
9. Slab bar spacing. — Where slab bars are parallel to supporting beams or
joists, the first slab bar is to be spaced, from the parallel support, a distance equal
to the specified interval betweon slab bars. From this as a base, slab bars are
to be spaced at the specified interval across the slab.
10. Joists adjoining beams or loalls. — Where a joist or a portion of one, which
is eight inches (8") or less in width, is parallel to and monolithic with, or is sup-
ported by a beam or wall for its entire length, no steel is to be estimated in the
joist. No extra steel is to be estimated in the beam, floor slab, or next parallel
joist because of the omission of steel in such joist.
11. Number of stirrups. — Wliere stirrups are called for and either the number
or size is not indicated, the weight of the stirrups is to be twelve (12) percent of
the total weight of longitudinal straight and truss bars in the beam. In. such
cases bar sizes of stirrups are to be three eighths inch (%") round.
12. Truss Bars in Beams or Joists. — In continuous or restrained beams or
joists approximate^ half tlie bars should be estimated as truss bars. The area
of steel over the support should be not less than that at the center of the longest
span on either side of tlie support. Any deficiency in negative moment steel
remaining after the area of truss bars has been determined may be supplied by
straight bars of proper area.
13. Column Ties. — Vv^liere column ties are called for but no amount shown,
they are to be one-fourth inch {%") rounds spaced twelve inches (12") center
to center.
14. Laps. — In walls, or footings under walls, longitudinal temperature bars,
where lapped, are to have a lap of twenty-four (24) bar diameters, but not less
than eighteen inches (18").
15. Bar Supporls'and Spacers. — It is strongly recommended that bar supports
and spacers be used. Where they are to be furnished but no specific number or
location given, they are to be estimated as provided in Section IV — 19.
16. Spiral Spacers. — Spiral spacers are to be estimated in aU cases, and are to
be figured at their theoretical weight, but not less than 0.75 pounds per foot of
vertical heiglit for each spacer used. Their number shaU not be less than that
indicated in Section IV — 18 — (d).
IV— MATEKIALS
17. Reinforcing Bars, (a) Type. — All reinforcing bars, except one-fourth
inch (K") round bars are to be of a deformed type. Sizes and areas are to be
limited to those recommended by the Division of Simplified Practice of the
Department of Commerce of the United States in their Bulletin No. R26-30
dated September 2d, 1930, as follows:
Sizes Plain or Deformed Bars (Sg. in.)
Yi" round 0. 05
Deformed Bars
Ys" round . 11
Yi" round . 20
Y2" square . 25
Ys" round . 31
Yi" round . 44
%" round . 60
1" round . 79
1" square 1. 00
lYs" square 1. 27
IK" square 1. 56
(b) Mill Marks.— 'Every deformed reinforcing bar is to be marked in the
process of manufacture Avith an identifying letter, which definitely determines the
mill of origin. These raised letters are to be rolled on the bar between deforma-
tions during the finishing pass once in each turn of the rolls [or approximately 4
feet (4') ajmrt]. This paragraph applies only to bars manufactured in the
United States.
(c) Weights. — Reinforcing bars sold at unit prices per pound, hundredweight
or ton are to be invoiced on the calculated weights as shown by the detailed shop
drawings and shop bills.
312
^ (d* , Lengths. — Reinforcing bars are to be sheared to length with a tolerance of
'l inch (I")- "\Vher8 exact lengths with no tolerance, or where finished ends are
required, it shall be so specified and in that case the bars must be machine cut by
either cold sawing or shearing and grinding, for which there is an extra charge. _
(e) Eending. — As a measure of adequate workmanship the bending of bars is
to be considered satisfactory when the diameter of pin or lug about which they are
bent complies with the following:
Truss Bars (all bends).
Diameter of pin equals not less than four (4) times the diameter or side of bar.
Stirrups and Column Ties (135 deg. to 180 deg. bend).
Diameter of pin or lug equals not less than three times (3) diameter or side of
bar.
Stirrups and Column Ties (90 deg. to 135 deg. bend).
Diameter of pin or lug equals not less than two (2) times diameter or side of
bar.
Dimensions of bent bars are to be out to out of bar, with an under tolerance of
one half inch (>4") and no over tolerance. Where exact dimensions, with no tol-
erance, are required, it shall be so specified, in which case there will be an extra
(f) Where fabrication other than in Section IV-17-(e) is required, such work
bIih^II be cliRrsGcl for.
18. Spirals (a) Sizes.— Spirals are to be manufactured from plain round rods
of intermediate grade steel or from cold drawn wire in the following standard
sizes and areas as recommended by the Division of Simplified Practice of the
Department of Commerce in their Bulletin R53-32 dated December 15th, 1932.
Size
l^" round-
ly" round-
W' round -
%" round-
(b) Dimensions. — The diameter of column spirals is to be taken to mean the
outside diameter. The minimum pitch of any spiral is to be 1^" and pitch is to
varv by }4" intervals.
(c) Finishing. — Spirals will be furnished with one fourth 04) extra turn at top
and bottom for finishing. Where it is necessary to splice spirals it is to be done
either by welding or lapping. The amount of lap furnished is to be 60 bar
dis^mctGrs.
(d) Spiral Spacers.— The number of spacers to be used for maintaining the
proper pitch of spiral is as follows:
Number of
Core diameter: spacers
Over 0 in. to 24 in 2
Over 24 inches "
(e) Shipping and Invoicing. — Shop-fabricated spirals are to be shipped v\^ith
two spacers attached, and in those cases where more than two spacers are called
for, exti-a spacers over two may be attached with tv/o spacers side by side or
bundled loose with the spiral for proper attachment in the field. Unfabncated
spirals are to be shipped with the spiral rod or wire coiled to the proper diameter,
bundled with the proper number of turns with spacers bundled separately, for
assembly in the field. Spirals, unless specifically ordered unfabncated, will be
shipped shop fabricated. Spirals are to be invoiced at the theoretical v/eight of
the rods or wire used in the spiral plus the weight of the spacers used.
19. Bar Supports and Spacers.— Biiv Supports and Spacers are to be estimated
sufficient in number and sufficiently heavy to carry properly the steel they
support The number shall be such as to give support not less than the following:
313
One-way slab construction
Span
Rows of
slab bar
spacer for
panel
High chairs in slabs 4" and
thicker i
1
2
3
4
1-row — 4'0" 0.0. at beam.
C to 14' steal not continuous
2-rows— 4'0" O.C. at beam.
14' to 20'
2-rows— 4'0" O.C. at beam.
20' to 2G'
' Continuous Hy Chairs may be substituted for individual high chairs and support bars.
Ordinary beam and joist construction
[Beam and bars 1 inch square and smaller]
Number of beam (joist) chairs
Clear spans, beam (or joist)
Single
layer of
bars
Two layers
Three layers
Lower
Top
Lower
Middle
Top
Over 0 ft. to 14 ft
2
4
4
(')
2
3
4
(1)
2
2
3
0)
2
3
4
(')
2
2
3
3
Over 14 ft. to 23 ft
2
Over 2.3 ft. to 30 ft
2
Over 30 ft.-
(')
' See table below.
Heavy beam and girder construction
[Beams or girders with large number of IH- or l}4-inch bars]
Number of beam chairs
Clear spans
Single
layer of
bars
Two layers
Three layers
Lower
Top
Lower
Middle
Top
Over 0 ft. to 15 ft —
2
4
4
6
7
7'0"
3
5
6
7
8
6'0"
2
2
3
4
4
lO'O"
3
6
7
8
9
5'0"
2
2
3
4
5
8'0"
9
Over 15 ft. to 23 ft
a
Over 23 ft. to 30 ft
2
Over 30 ft. to 40 ft
3
Over 40 ft. to 50 ft _
4
Spacing of beam chairs In spans other than
above:
All spans ..
ICO*
314
Flat slabs
[Two and four way flat slabs]
Spans (center to center of columns)
Over Oft. to 18 ft
Over 18 ft. to 26 ft
Over 26 ft. to 36 ft
Around interior columns.
Around exterior columns.
Around corner columns—
In interior panels
In exterior panels
In corner panels
Supporting spacers
Column
strip or
direct
band
Middle
strip or
diajional
band.bot-
tom layer
High chairs (to
support ^/i inch
bar under ends
of bent bars) '
Support
for col-
umn
head re-
inforce-
ment
Support
for nega-
tive rein-
force-
ment,
middle
strip
• Continuous Hy Chairs may be substituted for individual high chairs and support bars.
In roof slabs use one (1) more supporting spacer under column strips, direct
bands, and bottom layers of middle strips or diagonal bands, and one more 5^-inch
chair bar at column heads, than the number shown in the table above.
20. Wire fabric. — Wire fabric, unless specifically ordered galvanized, will be
furnished in rolls of plain wire. Sufficient wire fabric will be supplied to provide
a side lap of two inches (2") and an end lap of six inches (6")-
21. Floor forms. — Contracts providing for the furnishing of removable floor
forms do not include the furnishing or erecting of any supporting wood form work.
The proposal is based on the assumption that the floor forms may be removed in
from 4 to 5 days after the concrete is poured. Specifications for a longer period
before removal requires additional equipment and consequently an extra charge.
22. Other materials. — Contracts for furnishing reinforcing bars and related
materials do not include any of the following items: charges for surety bonds or
insurance not required by law or any other general charge such as building
permits, license fees, taxes for permission to work in City or State, or Municipal,
County, State or Federal Sales Taxes or governmental taxes of any nature.
23. Unspecified items. — Clauses in the specification to the effect that all rein-
forcing items necessary to complete the structure shall be furnished by the Seller
whether or not they are shown on the plans or called for in specifications, being
obviously unfair, will not be recognized or subscribed to.
V. Execution
24. Sho-p drawings, (a) Submission. — When contract involves engineering
such diagrams or plans as outUned in Section II are to be made by the Seller and
submitted in duplicate, for approval, to the appointed representative of the
Buyer, who is to examine and return them. Such plans, when approved without
change, are to be considered the correct interpretation of the materials to be
furnished.
(b) Corrections. — When the Buyer returns the Seller's plans with corrections,
the Seller is to correct the drawings and may thereupon begin fabrication of
the materials. Changes from the contract plans and specifications are to be
considered as extras and treated as outlined in paragraph V-29.
(c) Approved Copies. — Corrected copies of the Seller's drawings in triplicate
are to be returned to the Buyer for his use. Additional copies of the Seller's draw-
ings or cloth prints will be furnished the Buyer at the cost of printing. The
Buyer is to be responsible for delays resulting from the lackof complete data
and from changes or revisions, or the tardy approval of drawings.
25. Delivery. — Contract providing for delivery f.o.b. cars, means delivery on
board cars at the nearest public railroad siding. Delivery by truck, means
delivery on truck alongside curb at the job site. No deliveries are to be made
except over a passable road. On highway projects a definite accessible point of
315
delivery must be furnished by the Buyer to the Seller in advance of delivery date
or dates. All cost of unloading either cars or trucks is to be borne by the Buyer.
2G. Bundling and Tagging, (a) General Rules. — Reinforcing bars are to be
furnished bundled and tagged in accordance with the "Rules for Standard
Practice in Bundling and Tagging," as follows:
Note: The following rules apply to carload and less than carload lots, except
where difference is specifically set forth.
Straight bars
Bent bars
(a) Weight of bundle
(b) Gauee of wrapping wire
to be used.
(c) Wrapping wires per
bundle.
(d) Tag to be made of
(e) Number of tags on each
bundle.
(f) Information to be put on
tag.
(g) Information to be af33sed
to tag by.
(h) Tags attached to bun-
dles by.
Bundles limited to one size and
one length not to exceed 150 lbs.
No. 12 or heavier
One wire every 10 ft. or fraction
thereof with a minimum of two
wires.
Linen or rope
One-
Name of customer or order num-
ber. Number of pieces, size,
length, mark if any.
On less than carload lots the follow-
ing should appear: Name and
address of customer. Number
pieces, size, length, and mark if
any.
Tag addressing machine or Hig-
gins water-proof ink.
Linen or rope tag to be attached by
running bundling wire through
eyelet before twisting.
150 lbs.
No. 12 or heavier.
Not less than requirements for Straight
Bars.
Linen or rope tags for address. Zino
tags for identification.
One linen or rope tag and at least two
zinc tags.
Linen or rope tag. Customer's name
or order number. Zinc tag: Mark.
On less than carload lots customer's
name and address must appear on
linen or rope tag and mark on zino
tag.
On linen or rope tag: Same as straight
bars. On Zinc tag: Stencil press or
embossing machine.
Zinc tags to be tied to bar with No. 18
wire. Linen or rope tags to be at-
tached by running bundling wire
through eyelef before twisting.
(b) Metal Tags. — Metal tags are strongly recommended for use on all bundles
of bars, either bent or straight, for all purposes of identification, except as address
tags.
27. Quality. — Rust which does not scale off or pit the bar and/or mill scale are
not objectionable and shall not constitute cause for rejection.
28. Inspection. — All inspection for quality of reinforcing steel and related
materials is to be made at the Seller's rolling mill or fabricating warehouse prior
to cutting or fabrication for shipment, and total cost of same, including any
expense for operation of testing machine, is to be borne by the buyer.
29. Extra Work or Materials. — Any work or materials desired outside of that
epecifically called for in the contract will not be furnished until instructions in
writing have been issued by the Buyer to the Seller, at an agreed extra cost.
The Bu3-er will be credited for omissions of or deductions from the materials to
be furnished. The Seller is not to be required nor expected to make the same
unit price for additions to as for deductions from the materials required by the
original contract.
VI. Standard Procedure
30. Proposals, (a) Presentation. — All proposals for furnishing reinforcing steel
and related materials are to be made on standard contract forms as adopted by
the Concrete Reinforcing Steel Institute, incorporated herein. After acceptance
by the Buyer, these proposals must be approved or executed by a qualified official
of the Seller, upon which the proposal becomes a contract.
(6) Acceptance. — All proposals are intended for prompt acceptance and are
subject to change without notice.
31. Invoices. — The invoices are to be governed by the conditions set forth in
Section IV and by the provisions of the contract between Buyer and Seller.
32. Billing. — Contracts on lump-sum basis are to be billed proportionately a*
shipments are made.
33. Arbitration. — All business controversies which cannot be settled by direct
negotiation between the parties should be submitted to arbitration. Both
parties shall sign a submission to arbitration and, if possible, agree upon an
arbitrator. If they arc unable to agree upon one arbitrator, each shall appoint
an arbitrator, at once sending a written notice thereof to the other party. The
two arbitrators so appointed shall agree on a third arbitrator or, failing such
316
agreement, the arbitrator first appointed (as evidenced by the date of the written
notice of the appointment mailed to the other party) shall submit the names of
not less than five (5) persons to the other arbitrator, from among whom such
arbitrator shall select the third arbitrator. The expenses of the arbitration shall
be divided equally between the parties unless otherwise provided for in the agree-
ment to submit to arbitration. Unless otherwise provided for in the agreement
to submit to arbitration, the arbitrators shall pass finally on all questions, both
of law and fact.
34. Contracts. — The following are the standard contract forms as adopted by
the Concrete Reinforcing Steel Institute.
Note. — Pages 28 and 30 were initialed by R. W. Johnson, Secretary, Concrete
Reinforcing Steel Institute and Secretary of the Code Committee of the Rein-
forcing Materials Fabricating Industry.
R. W. JonNSON,
Secretary.
SCHEDULE C
(Part II)
Rules of Standard Practice, Concrete Joist Construction — Floor Forms
I — purpose
1. Scope. — The practices and customs contained in these Rules are in accordance
with good engineering practice, tend to insure safety and economy for Concrete
Joist Construction floors, and are standard within the Industry. The Rules are
made a part of contracts entered into betv/een the Buyer (or Lessee) and Seller
(or Lessor) of removable or permanent forms for Concrete Joist Construction
floors and related materials unless specific provision to the contrary is made.
2. Applicatio7i. — The Rules of Standard Practice are to govern as a standard in
those cases where the provisions of building codes, architects' and engineers'
plans and specifications, or contracts are not complete or clear. There shall be
no conflict between these Rules and any legal building regulations; these Rules
shall only supplement and amplify such laws.
II — engineering service
3. RcspovsibilUtj — (a) Correctness of Designs. — No responsibility can be assumed
by the Seller for the correctness of structural designs or dimensions furnished by
others. Any plans furnished by the Seller are intended merelj' to supplement the
architectural and structural plans and are to be used only in conjunction with
them.
(b) Discrepancies. — In case of discrepancies between the drawings and the
specifications prepared bj' either the Seller or the Buyer, the specifications shall
govern; and in case of discrepancies between the scaled dimensions on the drawings
and the figures written on them, the figures shall goverji. Should the Seller in
the execution of his work find discrepancies in the information furnished by the
Buyer, he shall refer such discrepancies to the Buyer before proceeding further
with work which would be affected.
Ill — estimating
4. General. — In estimating the area of floor and roof construction specified of
Concrete Joist Construction requiring removable or permament forms, no deduc-
tions are to be made for beams or for tees of beams, or for wide joists. Openings
fifty (50) scjuare feet or over are to be deducted except that when the Seller
proposes to furnish the wood centering in addition to the forms, all openings one
hundred (100) square feet or over are to be deducted. Concrete Joist Construc-
tion may be supported by any one of three types of structural members, and in
addition to the above general estimating rules, shall be subject to the following
special rules:
5. Reinforced Concrete Frame. — Areas are to be figured out to out of concrete
frame.
6. Structural Steel Frame. — Areas are to be figured center to center of spandrel
beams.
7. Bearing Wall Construction. — Areas are to be figured clear inside brick walla
plus a bearing on all .walls of six inches (6")-
IV — materials
8. Standard Widths of Forms. — The widths of removable and permanent forms
are to be limited to two dimensions, twenty inches (20") and thirty inches (30").
Special width filler forms, to be used onl^ in filling odd spaces are to be confined
to widths of ten inches (10") and fifteen inches (15"). These widths are adopted
by the Industry as standard and are included among those approved by the
Division of Simplified Practice of the Department of Commerce of the United
States through their Simplified Practice Recommendations R 87-32.
(317)
318
9 Standard Depths of Forms.— The depths of all removable and permanent
forms are to be limited to the following: six inches (6"), eight mches (8 ),
ten inches (10"), twelve inches (12"), and fourteen inches (14"). These depths
are adopted bv the Industry as standard and are approved by the Division of
Simplified Practice of the Department of Commerce of the United States through
their Simplified Practice Recommendation R 87-32.
10 Standard Tapered and Straight Ends.— Joists or ribs may be of one width
throuo-hout their length or tapered at the ends to resist maximum shear and
nesattve compressive stresses. Where joists tapered at the ends are required,
the length of the taper shall be three feet (3'-0"), and the total contraction of the
taper two inches (2") or four inches (4") for twenty inch (20") wide forms; and
four inches (4") or six (6") for thirty inch (30") wide forms. Tapers shall not
be provided for special width filler forms.
11 Quality of Material— {&) Condition of Forms. — Forms, whether removable
or permanent, shall be of sufficient strength to carry without undue deflection the
weight of concrete supported thereon, and also any ordinary loads during the
placing of the steel and concrete. Removable forms are at all times to be clean
and sufficiently straight to provide joists of the widths and depths shown on the
(b) Hanger Holes. — Where ceilings supported from metal hangers are specified,
one three-sixteenths inch (3/16") round opening will be provided in the top sur-
face of each three foot (3'-0") intermediate removable steel form and at each end
of each three foot (3'-0") end form; if such holes are not provided or if this does
not provide sufficient hanger holes to meet tlie requirements of the architect s
and engineer's designs, the Buyer may, at his own expense, punch such openings
to be not larger than nine-thirty seconds inch (9/32") round holes as directed by
and after receiving the written approval of the Seller. _ Similar holes may be
provided in removable wood forms under the same conditions.
(c) Concrete Workmanship.— The Seller sliall not be responsible for careless
concrete placing by the Buver nor for the finish obtained by the Buyer's use of
the forms and shall not be held liable for any charges for removing fins, pointing
up retouching, plastering, nor whitewashing of finished surfaces. ^ • x n
12 Other Materials. — Contracts for furnishing forms for Concrete Joist Con-
Etruction and related materials do not include any of the following items: charges
for surety bonds or insurance not required by law or any other general charge
Buch as building permits, license fees, etc. « x x, x „ n
13. Unspecified Ite^ns. — Clauses in the specifications to the ettect that aU <^on-
crete Joist Construction floor forms necessary to complete the structure shall be
furnished by the Seller whether or not they are shown on the plans or called for
In specifications, being obviously unfair, will not be recognized or subscribed to.
V EXECUTION
14 Shop Drawings — (a) Suhmission.—When the contract involves engineering,
Buch diagrams or plans as outlined in Section II are to be made by the Seller and
submitted in duplicate, for approval, to the appointed representative of the
Buyer, who is to examine and return them. Such plans, when approved without
change, are to be considered the correct interpretation of the materials to be
(b) Corrections.— When the Buyer returns the Seller's plans with corrections,
the Seller is to correct the drawings and may thereupon begin shipment or installa-
tion of the materials. Changes from the contract plans and specifications are to
be considered as extras and treated as outlined in paragraph V-20.
(c) Approved Copies. — Corrected copies of the Seller's drawings m triplicate
are to be returned to tlie Buyer for his use. The Buyer is to be responsible for
delays resulting from the lack of complete data and from changes or revisions, or
the tardy approval of the drawings.
15. Lease only basis— (a) Care of Forms.— Where removable forms are leased
without including the labor of placing and removing same, said forms are to
remain the property of the Seller (Lessor) and reasonable care is to be exercised
in their use. Parts cut or damaged other than as specified in the contract shall
be paid for by the Buyer. Cutting of forms for installation of mechanical trades
equipment is not considered as ordinary wear and tear. Forms are to be thor-
oughly oiled (if steel) or wetted (if wood) by the Buyer (Lessee) each time before
steel is set and concrete is placed.
(b) DeKt^er?/.— Contracts providing for delivery F.O.B. cars, mean dehvery on
board cars at the nearest pubUc railroad siding. Delivery by truck means
delivery on truck alongside curb at the job site providing there is a road pass-
319
able to a loaded truck. In case there is no passsable road, the delivery la to be
made as close to the job site as it is possible to drive a loaded truck.
(c) Return. — At the completion of the work, forms are to be loaded on cars or
trucks in a similar manner. All costs of unloading and loading cars or trucks
are to be borne by the Buyer.
(d) Bundling and Tagging for Return. — Where return shipments are less car-
load, Buyer (Lessee) is to bundle and tag forms to insure shipment at the lowest
possible freight rate, and in all cases shall consult Seller (Lessor) for proper
freight classification.
16. Lease and erect basis — (a) Workmanship. — Where steel or wood forms are
furnished on a rental, erection and removal basis, the Seller shaU use reasonable
care in his work to produce joists of the width and depth shown on plans. Suffi-
cient time shall be allowed for the performance of said work on the basis of a
normal eight-hour day. Unless specifically stated to the contrary in the contract,
it is understood that the open wood centering is to be furnished erected complete
in place by the Buyer.
(b) Overtime Work. — In the event the Buyer, or any subcontractor, requires
the Seller to perform such labor on an overtime basis, then such additional
expenses of every kind and character as the Seller may be required to incur on
account of said overtime labor shall constitute an additional charge.
(c) Use of Hoist. — The Buyer is to permit the free use of the hoist including the
engineer's time.
17. Permanent forms. — When permanent forms are furnished by the Seller to
be erected by the Buyer, the delivery conditions shall be the same as those under
paragraph 15 (b). When permanent forms are furnished to be erected by the
Seller, the overtime work and use of hoist conditions shall be the same as under
paragraphs 16 (b) and (c).
18. Quantity furnished. — Unless otherwise especially stated, it is understood
that for removable forms one maximum floor of forms is to be furni.shed.
19. Bridging joists. — End forms for bridging joists shall be provided only
when specifically shown on the dra-udngs.
20. Extra ivork or materials. — Any work or materials desired outside of those
specifically caUed for in the contract will not be furnished until instructions in
writing have been issued by the Buyer to the Seller, at an agreed extra cost.
The Buyer will be credited for omissions of or deductions from the materials to
be furnished. The Seller is not to be required nor expected to make the same
unit price for additions to as for deductions from the materials required by the
original contract.
VI ARBITRATION
21. Arbitration. — All business controversies which cannot be settled by direct
negotiation between the parties should be submitted to arbitration. Both
parties shall sign a submission to arbitration and, if possible, agree upon an
arbitrator. If they are unable to agree upon one arbitrator, each shall appoint
an arbitrator, at once sending a written notice thereof to the other party. The
two arbitrators so appointed shall agree on a third arbitrator or, failing such
agreement, the arbitrator first appointed (as evidenced by the date of the written
notice of the appointment mailed to the other party) shall submit the names of
not less than five (5) persons to the other arbitrator, from among whom such
arbitrator shaU select the third arbitrator. The expenses of the arbitration shall
be divided equally between the parties unless otherwise provided for in the
agreement to submit to arbitration. Unless otherwise provided for in the agree-
ment to submit to arbitration, the arbitrators shall pass finally on all questions
both of law and fact.
VIl CONTRACTS
22. Contracts. — The contract forms used by the Concrete Reinforcing Steel
Institute incorjjorate these Rules of Standard Practice by reference and they
thereby become a part of agreements to lease or lease and erect forms.
SCHEDULE D
Uniform Sales Contract Adopted bt the Concrete Reinforcing Steel
Institute, March 10, 1926
The ABC Company,
Chicago, III.
Office
To , Date
Address ■ ■ , Structure
City , State . , Location
, Architect
We propose to furnish the following described materials required for the
above structure, in accordance with the conditions of the Rules of Standard
Practice of the Concrete Reinforcing Steel Institute, subject to the provisions
of the National Industrial Recovery Act Code governing this Industry, and the
following terms, including those printed on the reverse side of this sheet, which
upon acceptance by you of this proposal are agreed to and accepted by you:
Prices are f.o.b. .
Terms: Net cash 30 days, or ^ of 1% discount if paid in 10 days from date
of each invoice, payable in funds par at .
We will commence shipment within days from date of approval of
this quotation by our Home Office or, where required, from receipt of approval
of placing drawings or lists of material by our Office.
All lists of material or approvals of placing drawings shall be furnished by
you to our Office to permit us to complete shipment on or before .
Prompt acceptance of this quotation by you and the written approval of our
Home Office shall constitute a binding contract.
The above proposal is accepted:
, By The ABC Company,
. Approved at Home Office.
Date . The ABC Company,
Consign to . By ,
Charge to . Contract No. —
This quotation is sent to you In duplicate. If accepted, sign and return one
copy, and retain the duplicate for your files.
(320)
{On Reverse Side of Contract)
General Conditions of Sale
You agree to carefully check material against shipping papers upon unloading
at destination. No claims for shortages or for improper, defective, or damaged
material will be recognized by us unless written notice specifying in detail the
nature and extent of the shortage, defect or damage be mailed to our Office
within five days from unloading accompanied, in the case of claim for shortage
or damage, by original freight bill with a notation on the face thereof by the local
agent of the carrier as to the items and quantity short or damaged. When we
deliver by truck, all claims for shortages or damaged material must be sent to
us on date of delivery.
Upon receipt by us of the above notice, so substantiated, we agree to replace
such shortages and material not up to contract requirements. We will in no
case pay or be liable for any claims resulting from use of improper, defective, or
damaged material, and no claims will be allowed on account of any purchases or
returned material, unless authorized in writing by our Home Office.
Contingencies beyond our reasonable control (including lockouts for reasonable
cause) shall be sufficient excuse for any delay in delivery.
Material shall be at your risk from delivery by us to the carrier at f.o.b. shipping
point. Title to material shall remain in us until payment in full by you.
Your failure to furnish lists of material, to approve placing drawings, or to
make payments as provided herein will entitle us to stop shipments without
notice to you, to retake possession of any shipments already made, and, upon
notice to you, to cancel the unexecuted portion of the contract and to hold you
for damages.
We may at any time decline to make further shipments except on receipt of
satisfactory security.
All material shipped from warehouse shall be invoiced in accordance with our
current published schedules of weight, areas, bundles, and standard lengths, which
shall govern all settlements.
We assume no responsibility for the design on those jobs where we prepare
placing drawings from designs furnished by others.
No conditions or representations altering, detracting from, or adding to the
terms hereof, shall be valid unless printed or written hereon or evidenced in
writing from our Home Office and accepted by you.
All accounts not paid when due shall bear interest at the rate of — percent
( — %) per annum.
(321)
Uniform Contract for Leasing oj Forms Adopted by the Concrete Reinforcing Steel
Institute
THE ABC COMPANY
CHICAGO, ILLINOIS
Office.
Date.
To
Address
City State
We propose to furnish, on a LEASE ONLY BASIS,
(Trade name) _
forms, in accordance with the conditions of the Rules of Standard Practice of
the Concrete Reinforcing Steel Institute, subject to the provisions of the National
Industrial Recovery Act Code governing this Industry and the following terms,
to be used to pour as per schedule below, for use only
in the proposed building known as at
(Architect ) for the sum of Dollars
($ ) f.o.b. shipping point with freight allowed to railroad station nearest
to job. Forms to be returned by you, bundled, loaded on cars at your expense,
and shipped, freight collect, as directed by us.
We will furnish forms to pour at one time
Shipment to be made within days from date of approval
of this quotation by our Home Office or, where required, from receipt of approval
of placing drawings.
SCHEDULE
Terms: Net cash thirty days from date of shipment, payable in funds par at
"should the forms be retained more than months after arrival at
job, you are to pay us monthly for each additional or fraction of a month twenty
(20) percent of the total contract price.
Forms are to be cleaned and oiled after each use, protected from damage, and
returned in good condition; ordinary wear and tear excepted. Parts cut or
damaged, other than as specified on the face of this contract, will be charged to
you at Eight Cents ($0.08) per pound. Cutting of forms for installation of
mechanical trades' equipment is not considered as ordinary wear and tear.
The forms supplied for this work are to remain at all times our property.
Column forms shall not be poured to fill more than ten (10) vertical feet at one
time, and an interval of two (2) hours shall be allowed before continuing the fill.
The agreement is subject to contingencies beyond our reasonable control, includ-
ing lockouts for reasonable cause.
You agree to check materials against shipping list upon arrival at destination,
and to report in writing to us, within five (5) days after delivery, any shortage
or damage, with a notation on the face of the original freight bill, signed by the
railroad agent, as to the quantity short or damaged. When we deliver by truck,
all claims for shortages or damaged material must be sent to us on date of delivery.
No claim for shortage or damaged material will be allowed unless reported as
above. , ,, .,, , ,
Prompt acceptance of this proposal by you and the written approval of our
Home Office shall constitute a binding contract. •
The ABC Company,
The above proposal is accepted:
By
Approved at Home Office:
The ABC Company,
Date Contract No. By
(322)
Uniform Contract for Leasing and Erection of Forms Adopted by the Concrete
Reinforcing Steel Institute
THE ABC COMPANY
CHICAGO, ILLINOIS
Office
To
Address Date
City State
We propose to LEASE, ERECT, AND REMOVE
(Trade name)
forms, in accordance with the conditions of the Rules of Standard Practice of the
Concrete Reinforcing Steel Institute, subject to the provisions of the National
Industrial Recovery Act Code governing this Industry and the following terms,
to be used to pour as scheduled below, for use only in the
proposed building known as at
(Architect ) for the sum of Dollars
(S ) f.o.b. shipping point with freight and cartage allowed to job.
We will furnish forms to pour at one time
Shipm.ent to be made within days from date of approval
of this quotation by our Home Office or, where required, from receipt of approval
of placing drawings.
SCHEDULE
Terms: net thirtj' days from date of shipment and the balance on the
of each month for percent of work completed during the previous month,
the percent retained to be payable on the of the month following the
completion of the work under this contract, paj"able in funds par at
We agree to furnish all labor necessary to erect our forms so as to keep at all
times ahead of j'our schedule for pouring concrete, provided we are given three
(3) days' notice and provided you then have your work ready for the placing of at
least two thousand (2,000) square feet of floor area for steel floor forms, or your
work is ready to receive not less than ten (10) column forms, and provided we
are permitted to remove steel floor forms in from four (4) to five (5) days and
■ column forms in from twenty-four (24) to forty-eight (48) hours after the con-
crete is poured. We are to be given a reasonable time to place and oil forms
before steel or other materials are installed which would interfere with the erection
of our forms.
You are to build your form work in accordance with our standard details, and
you will be responsible for all elevations, grades, and locations. You are to
provide sviitable storage space at the building site, and the free use of a hoist.
Cutting of forms for installation of other equipment is not considered as ordinary
wear and tear, and parts so damaged will be charged to you at eight cents ($.08)
per pound.
Steel forms are subject to your approval, and if they are used as erected, wa
shall not be responsible for any chipping, finishing, or retouching of concrete
surfaces.
The forms supplied for this work are to remain at all times our property and
in our possession.
Concrete in column forms shall not be poured to fill more than ten (10) vertical
feet at one time, and an interval of two (2) hours shall be allowed before continuing
the fill.
Should there be any stoppage of work for which we are not responsible, or
breach of this contract, we reserve the right to remove our forms and you agree
to pay all handling and transportation expenses from and to the nearest other
available job if forms are returned or replaced on this job.
This agreement is subject to contingencies bej'ond our reasonal^le control,
including lockouts for reasonable cause.
Prompt acceptance of this proposal by you and the written approval of our
Home Office shall constitute a binding contract.
The above proposal is accepted:
The ABC Company,
By
Date Contract No.
(323)
O
Approved at Home Office.
THE ABC COMPANY,
By
Approved Code No. 128
CODE OF FAIR COMPETITION
FOR THE
CEMENT INDUSTRY
As Approved on November 27, 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 Cement 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 subsec-
tion (a) of section 3 of the said act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National industrial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and recommendations and adopt the
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
A dministrator.
The White House,
November 27 ^ 1933.
(325)
:42801' 42&-l(
November 3, 1933.
The President,
The White House.
Sir : A proposed Code of Fair Competition for the Cement Indus-
try was submitted to the Administrator on July 19, 1933, by the
Cement Institute. Tlie hearing was conducted in Washington on
September 15, 1933. The Code was revised during the recess of the
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.
Provisions of Code as to Wages and Hov/rs.— Hours of employment
are permitted to be flexible over any half calendar yearj but are not
permitted to be in excess of an average of more than thirty-six (36)
hours per week during this period, nor more than eight (8) hours
in any one day. The maximum hours of work are limited to forty-
two (42) hours per week for employees other than clerical and office
employees who are limited to forty (40) hours per week. Em-
ployees engaged in the work of packm^ and shipping are limited to
ten (10) hours in any one day and thirty -six (36) hours per week
averaged over any half calendar year.
The following are exempted from the preceding provisions:
(a) Employees engaged m executive, administrative, technical and
Bales staff work, and employees in supervisory capacities.
(b) Employees engaged in emergency work involving breakdowns
or protection of life or property.
No evasion of this Code by reclassification of workers is permitted.
Minimum wages are established in twelve geographical districts
as defined by the Bureau of Mines. In two Southern districts a mini-
mum hourly rate of thirty (30) cents per hour is established. In a
portion of two districts a minimum of thirty-seven (37) cents, and in
a portion of one district a minimum of thirty-eight (38) cents. In
all other districts a minimum of forty (40) cents is established.
The above minimum rates are excepted only when the rate for
the same class of work on July 15, 1929, was less than forty (40)
cents per hour, in which case the hourly rate shall be not less than
the hourly rate on July 15, 1929, and in no event less than thirty
(30) cents per hour.
No minor under the age of sixteen (16) years shall be employed
and no minor under the a^e of eighteen (18) years shall be employed
in any hazardous occupation.
EcoNOMio Ettect of the Code
Comparison of the production of Portland Cement in the years
1928 and 1932, shows a decline of 54%. Comparison of number of
persons employed by the Industry shows a decrease from 34,244
employees in 1928, to 11,941 in February 1933. or a decline in
employment of 68.8%. It is estimated that based on employment
in 1932, the adoption of the average thirty-six (36) hour week as
(326)
327
proposed in the Code will cause absorption by the Industry of
5,618 additional workers and a payroll increase of approximately
40%.
The approA'al of this Code is expected to :
(1) Stabilize the Industry and prevent economic disturbance due
to price Avars.
(2) Protect dealers and the consumer against undue monopolistic
tendencies of the Industry.
(3) Preclude the possibility of uncontrolled abuses due to the
multiple basing SA'stem.
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, witliout limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof: and that
(b) The apj)licant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Cement 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,
A dministrator.
CODE OF FAIR COMPETITION
FOR THE
CEMENT INDUSTRY
Article I — Pukposb
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 Portland Cement Industry, and upon ap-
proval by the President shall be the standard of fair comj^etition for
such industry, and shall be binding upon every member thereof.
Article II — Definitions
1. The term " Portland Cement Industry " as used herein includes
the manufacture and sale by manufacturers of Portland Cement.
2. The term " employee " as used herein includes an3^one engaged
in the Portland Cement Industry, in any capacity, receiving com-
pensation for his services, irrespective or the nature or method of
jDayment of such compensation.
3. The term " employer " includes any enterprise by whom any
such employee is compensated or employed.
4. The term " member of the industry " as used herein includes any
enterprise engaged in the industry as above defined.
5. The term " district " as used herein means the geographical
producing district as now or hereafter designated by the United
States Bureau of Mines or other Governmental Agency, or as may
hereafter be determined by the Code Authority.
6. The term " productive capacity " as used herein shall mean the
productive capacity of the industry as determined by the United
States Bureau of Mines.
T. The term " Institute " as used herein shall mean The Cement
Institute.
8. The term " Board " as used herein shall mean the Board of
Trustees of The Cement Institute.
9. The term " plant " as used herein shall mean a Portland Cement
Manufacturing Plant.
10. The terms " President " and "Act " and "iVdministrator " as
used herein, shall mean respectively the President of the United
States, the National Industrial Recovery Act, and the Administrator
of said Act.
(328)
329
Article III — Labor
A. General. — 1. Pursuant to subsection (a) of Section 7 of the
Act, and so long as this Code shall be in effect :
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing ;
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
2. No person under 16 years of age shall be employed, and no
person under 18 years of age shall be employed in any hazardous
occupation, in the industry.
3. Within each State, no provisions of this Code shall supersede
any laws of such State imposing more stringent requirements, regu-
lating the age of employees, wages, hours of work, or health, fire, or
general working conditions, than are imposed under this Code.
4. Employers shall not reclassify employees or duties or occupa-
tions performed by employees to defeat the purposes of the Act.
B. Hours. — 1. Except as hereinafter otherwise provided, on and
after effective date no employee shall work or be permitted to work
in excess of forty-two (42) hours in any one week o.r eight (8) hours
in any one day ; nor more than thirty-six (36) hours per week aver-
aged over any half calendar year, excepting, however (a) employees
engaged in emergency maintenance and repair work involving break-
downs or protection of life and property, and (b) employees in pack-
ing and snipping departments, who shall not, however, work more
than ten (10) hours in any one day or thirty-six (36) hours per
week averaged over any half calendar year. If any employee on an
hourly rate works in excess of 36 hours per week averaged over any
half calendar year the wages paid for such excess shall be at the rate
of not less than one and one third (IV^) times the regular hourly
rate.
2. No clerical or office employee shall work or be permitted to
work in excess of forty (40) hours in any one week.
3. The maximum hours specified in the foregoing sections of this
Article shall not apply to executive, administrative, supervisory, or
technical employees who are paid thirty-five ($35) dollars or more
per week, nor to sales staff employees.
4. No employee shall be permitted to work for a total number
of hours in excess of the maximum hours specified in the foregoing
sections of this Article whether employed by one or more employers.
C. Wages. — 1. Except as hereinafter otherwise provided, no em-
ployee shall be paid at less than the hourly rates specified for each
330
of the twelve geographical districts as set forth in exhibit "A" of
this Code, as follows:
Minimmn
District Number : Wage per Hour
1 40«i
2 400
3 40.^
4 40^
6 Except (a) 40^
(a) Jefferson and Meade Counties, Ky 38^
6 300
7 Except (a) and (b) 400
(a) St. Louis Co., Minn 37^
(b) Ralls County, Mo 37^
8 40(^
9 300
10 40^
11 400
12 400
2. When the hourly rate for the same class of work on July 15,
1929, was less than 40 cents per hour, employers shall not pay less
than the hourly rate on said date and in no event less than 30 cents
per hour.
3. Untrained labor for a period not exceeding three (3) months
and employees who by reason of old age or phj^sical infirmities are
not capable of normal productive effort shall be paid not less than
80 percent of the minimum wage rates, but the total number thereof
at any one plant shall not exceed 5 percent of the total number of
employees engaged by any employer in any one plant at any one time.
4. The foregoing provisions of this section established a minimum
rate of pay regardless of whether an employee is compensated on a
time rate, piece rate, or other basis. The rates of pay hereinbefore
provided shall not be understood to be the maximum rates of pay
for the respective districts.
5. The amounts by which wages in the higher paid classes of em-
ployees have exceeded wages in the lower paid classes of employees,
shall be maintained, having in view long-standing wage differentials.
6. Female employees shall not be employed after 6 : 00 p.m.
7. Each employer shall post at a conspicuous place at each plant
the minimum wages and maximum hours under this Code.
Article IV — Administration
To effectuate further thp policy of the Act a Code Authority is
hereby constituted to cooperate with the Administrator in the admin-
istration of this Code.
A. Organization and Constitution of the Code Authority. — The
Code Authority shall consist of seven individuals, or such other
larger number as may be approved from time to time by the Admin-
istrator, to be selected as hereinafter set forth. The President, in his
discretion, may appoint not more than three additional members
without vote to represent the Administrator.
1. The Board shall elect the Code Authority. The persons so
elected shall, subject to changes at any time by the Board, serve on
such Code Authority for such term as the Board shall determine.
The Board shall be made up as follows :
(a) One member to be chosen from each district.
331
(b) Trustees at Large, not to exceed seven (7) in number, shall be
chosen by those members of the Board who represent the cement
districts.
(c) The President, the Vice Presidents, and the Treasurer of the
Institute shall be ex-officio members of the Board %Yith full power to
vote.
The members of the Board to represent the cement districts shall
be elected by the members of the industry who participate in the
activities of the Code Authority, as provided in Section B, sub-
section 8 below, in the respective districts by a majority vote of
such members in each such district to serve for the term of one year
and until their successors are elected and have qualified, and the
members of the Board, so elected, shall elect the Trustees at Large ;
provided, however, that any member of the Board elected to repre-
sent any cement district may be recalled by a majority vote of the
members of the industry in any such cement district in the event of
the change in status of such Trustee or if, for any other reason, any
such Trustee is not considered to be representative of the members
of the industry in such district and, in the event of such recall, such
members shall elect, by a majority vote, a Trustee to fill the unex-
pired term of the Trustee who has been recalled; a majority of the
members of the Board shall have like power with respect to any
Trustee at Large,
In the event of a vacancy in the Board, such vacancy shall be
filled for the unexpired term of the Trustee whose vacancy is to be
filled in the same manner as such Trust€e was elected a member of the
Board.
In the event of the inability of any Trustee elected to represent a
cement district, or of any Trustee at Large to attend any meeting
of the Board or of the Institute or of any committee or committees
thereof, the members of the industry in such district, with respect
to Trustees representing cement districts and the other Trustees at
Large, with respect to any such Trustee at Large, shall have the
right, from time to time as the occasion may require, to elect an
Alternate Trustee to attend any such meeting or meetings who shall
have such authority to represent the members of such district or to
act as Trustee at Large as may be prescribed by such members or
by such other Trustees at Large. Within the limits of the authority
conferred upon him, as herein provided, any such Alternate Trustee
shall have the right to vote and to act in all respects in the place
of the member of the Board whose place he fills.
2. The Institute or its successors or any trade or industrial asso-
ciation participating in the selection or activities of the Code
Authority, shall :
(1) Impose no inequitable restrictions on membership;
(2) Submit to the Administrator true copies of its Articles of
Association, By-Laws, Regulations, and any amendments when
made thereto, together with any other information relating to mem-
bership, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
3. In order that the Code Authority shall at all times be truly
representative of the industry, and in other respects comply with
43801 ° 125-16 34 2
332
the provisions of the Act, the Administrator shall provide such
hearings as he may deem proper; 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 m the method of selection of tne Code
Authority.
B. Powers and Duties of the Code Authority. — In addition to the
powers and duties herein specifically conferred upon the Code Au-
thority, it shall have the following duties and powers to the extent
permitted by the Act and subject to the right of the Administrator
by 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, coordinating,
and administering agency of this Code. It may make such rules and
regulations as may be necessary for the conduct of its business in the
administration of this Code.
2. The Code Authority may designate the Institute or such other
committees or agents, and may delegate to them such of its powers
as it may deem necessary for the administration of this Code; pro-
vided, however, that the Code Authority shall not be relieved of final
responsibility with respect to any such delegated powers.
3. The Code Authority shall, upon complaint of interested parties,
upon request of the Administrator, or upon its own initiative, make
such inquiry and investigation as to the operation and observance of
this Code as may be necessary and report the results thereof to the
Administrator for such action by him as may be in accordance with
law.
4. No member of the Code Authority or of any committee desig-
nated by it shall participate as such member in a proceeding in which
he is interested, either as complainant or as respondent, or in which
he is in any other manner directly interested ; and in the event of any
such disqualification, the remaining members of such Code Authority
or committee shall certify such disqualification, together with the rea-
sons therefor, to the President of the Institute, who shall promptly
designate a person to sit as a special member of such Code Authority
or committee for the purposes of any such proceedings; provided,
however, that any such special member so appointed shall be selected
from the same group of the industry as is represented by the member
whom he replaces.
5. In order that the President may be informed of the extent of
the observance of the provisions of this Code and of the extent to
which the declared policies of the National Industrial Recovery Act
are being effectuated in the industry, the Code Authority and mem-
bers of the industry shall make such reports as the Administrator
may require periodically or as often as he may direct. Each member
of the industry shall make such sworn or unsworn reports to the
Code Authority or to such agency as it may designate as to wages,
hours of labor, number of employees, and such other matters as the
Code Authority may require for the administration of this Code;
provided, however, that any information furnished hereunder of a
confidential nature as between competitors in the industry shall not
be available to competitors nor published in such form as shall reveal
the identity of any member of the industry furnishing such reports.
333
In addition to the information required to be submitted to the
Code Authority, there sliall be furnished to governmental agencies,
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3(ff) of the Act.
6. Any interested party shall have the right to complain to the
Code Authority under such rules and regulations as it may prescribe
in respect of any rule, regulation, order or finding made or course
of action pursued by the Code Authorit}^, and any interested party
shall have the right to appeal to the Administrator under such rules
and regulations as he may prescribe in respect to any decision, rule,
regulation or course of action of the Code Authority, pursuant to
any provision of this Code.
7. The Code Authority and/or the Board may, from time to time,
make such recommendations to the President as it may deem advis-
able or necessar}^ to effectuate the policy of the Act and to develop
and maintain conditions of fair competition in the Industry; and
any modification or additions to this Code recommended by the
Code Authority and/or the Board shall, upon approval by the Presi-
dent, become part of and shall have the same force and effect as
other provisions of this Code.
8. Any member of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authoritj^, and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and by either
paying his reasonable share of the expenses of its administration
or by becoming a member of the Institute. The reasonable share of
expenses of administration shall be determined by the Code Author-
ity 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.
Article Y — Safety Work
As an evidence of the general attitude of the industry toward its
emploj^ees, the industry points with pride to its achievements in the
field of safet}^ For many years the industry has occupied the
premier position in safety accomplishments. It has been regarded
as an exemplar in safety technic; it received the Joseph A. Holmes
awards for the years 1930 and 1932, which is more notable because
during those declining and depression years, great difficulties were
experienced in maintaining normal safety morale in plant organiza-
tions. Such results, in the opinion of tlie industry, can be attained
only by the cooperative effort of constructive management and satis-
fied, intelligent employees. The safety movement in the industry is
conducted by, and for many years has been one of the constructive
activities of, the Portland Cement Association, an organization of
the industry which is devoted to research, education and improve-
ment and extension of the use of concrete. So far as practicable,
the safety movement will be continued.
Article VI — Plan for Sharing Available Business
1. The Board is hereby authorized to formulate a plan or plans,
within thirty (30) daj^s after the effective date of this Code, unless
834
such time shall be extended by the Administrator, for the equitable
allocation of available businevSS among all members of the industry or
among members of the industry operating in one or more Districts,
and for the control of cement inventory and to submit the same either
to a meeting of all membere of the industry or to meetings of mem-
bers in the Districts affected, as the Board may determine, for ap-
proval, modification or rejection. Each member of the industry
shall be entitled to receive notice of any such plan and to participate
in any meeting or meetings of all members of the industry or of
members in the District in which such member operates and, further,
shall have the right to appear before the Board at any meeting at
which any such plan is being considered for the purpose of present-
ing any facts or arguments relative thereto.
When any such plan shall have been formulated by the Board, the
Code Authority shall present the same to the Administrator for con-
sideration and the Code Authority shall represent the industry and
the Board in conference with the Administrator with respect to any
such plan; provided, however, that as regards any such plan the
Code Authority shall have only such power to bind the industry or
any subdivision thereof as shall have been conferred upon it by ma-
jority vote of the industry or of any subdivision thereof, and each
member shall have the right to present his objections, if any, to the
Administrator. The Code Authority shall collect and present to the
Administrator such data and statistics as may be required in connec-
tion with any such plan together with a statement of the names of
those members of the industry that approve and of those that dis-
approve such plan in whole or in part.
2. Any such plan shall be based on the following principles :
(a) It shall be fair and its benefits shall be equitably apportioned
to all plants.
(b) It shall give due consideration to all pertinent factors includ-
ing demonstrated productive capacity based on the clinker and/or
cement production performance of non-obsolete plants and equip-
ment.
(c) It shall in no way reduce the total production of all plants
below what is necessary amply to supply demand.
(d) It shall not promote monopoly or monopolistic practices or
oppress small enterprises.
Article VII — Increase in Productive Capacity
Prior to the construction or operation of a new plant, or the in-
crease in the productive capacity of an existing one, or the move-
ment of all or part of such a plant from one place to another. The
Cement Institute, on receipt of such information, shall promptly
collect complete information concerning existing productive capacity
in the area in which the proposed new plant is to be located, together
with data concerning consumption of cement in that area. If these
data disclose that such new plant will result in further increasing
the problem of over-production or over-capacity in such area. The
Cement Institute may petition the President to prohibit the con-
struction, or operation, of the proposed new plant, or the increase
in manufacturing capacities of such existing plants. The provisions
335
hereof shall not be construed to prevent the modernization of existing
plants to improve quality of product and/or operating efficiency.
The Board may study the problem of permanent excess of produc-
tive capacity in any area and may from time to time prepare and
submit to the Administrator for consideration plans for the closing
down or amortization of the less economical plants.
Article VIII — Cost Protection
1. It shall be an unfair method of competition for any member of
the industry to sell or offer to sell cement at less than his expenses of
manufacture, provided, however, that any member of the industry
may sell or offer to sell cement at below his own expenses to meet the
competition of any other member of the industry whose price is not
less than the expenses of manufacturing of such other member.
Manufacturing expenses as used herein, shall include all direct
labor and material (which do not gTeatly vary per unit of produc-
tion with volume of output), at cost or market whichever is lower,
plus a proportionate share of all indirect expenses, inclusive of maxi-
mum depreciation and/or depletion allowances computed according
to Federal Income Tax procedure, but exclusive of any capital
reserves, for purposes other than depreciation and/or depletion, and
exclusive of interest paid and development expenses. Provided, that
the distribution of such indirect expenses per unit of product pro-
duced shall be on the basis of an average rate of utilization of plant
facilities by efficient producers.
Unless and/or until some other formula is submitted to, and
approved by the Administrator, the average rate of utilization of
plant facilities shall be determined as follows, to wit:
Each member of the industry shall send to an impartial agency
appointed by The Institute, a consolidated income-tax return for
that portion (or all) of his operations, devoted to the manufacture
of Portland Cement for each of the years 1927-1932, or such other
period as, upon presentation of official data, may be determined to
be fair and as will better effectuate the purpose hereof and be ap-
proved by the Administrator, together with a record of phj'sical
production, productive capacity, and sales in each of these years.
From these reports will be calculated the average rate of utiliza-
tion of productive capacity by the one third (l^) portion of tlie
industry which reported the lowest average per unit cost of
production for such period.
This percentage of productive capacity (rather than full capacity)
shall become standard for the distribution of indirect expenses and
fixed charges for the purpose of determining the per unit manufac-
turing expenses, by every member of the industry.
2. In case of any complaint that a member of the industry has
violated the above provisions of this Code, the Code Authority shall
give to such member of the industry not more than seven (7) days,
or such other reasonable time as may be fixed by the Code Authority,
in which to present evidence of its compliance with the foregoing
provisions. If the Code Authority is not satisfied by the proof fur-
nished by such member, the matter shall be promptly referred to the
Administrator who shall immediately select a certified public ac-
836
coTintant to examine the cost accounting of the member of the in-
dustry complained against and notify such member of the selection
made and request the consent of such member to the examination of
its cost accounting by the certified public accountant so selected. If
such member shall not, within two (2) days after receipt of notice
from the Administrator, as above provided, furnish to the Adminis-
trator written consent to such examination or shall not thereafter
make available to such certified public accountant all books and rec-
ords necessary to complete the examination of the cost accounting of
such member of the industry, then, and in either event, the Admmis-
trator shall forthwith refer the matter to the Federal Trade Commis-
sion which shall audit the cost accounting of such member of the
industry and report to the Administrator, who may transmit a copy
of such report to the Code Authority and to the member of the m-
dustry complained against, with the least practicable delay. In the
event that the member of the industry complained against shall con-
sent to the examination of its cost accounting by the certified public
accountant selected by the Administrator after such accountant shall
complete his report, such accountant shall report his findings to the
Administrator and transmit a copy thereof to the Code Authority
and to the member of the industry complained against. If, in the
opinion of the Administrator, the report of such accountant shall
sustain the contention of the Code Authority but is not acceptable
to the member of the industry complained against, then the matter
shall be referred by the Administrator to the Federal Trade Commis-
sion, as above provided. The decision of the Administrator on the
report of the accountant selected by him or on the report of the
Federal Trade Commission shall be final regarding the costs of the
member of the industry complained against.
3. Uniform Cost Accovjnting. — The Code Authority shall prepare
and adopt for general use throughout the industry, and submit to
the Administrator for approval within thirty (30) days of the effec-
tive date hereof, a standard method or system of uniform cost
accounting which shall specify all items and include all elements of
manufacturers cost. When so prepared, adopted, and approved,
all members of the industry shall apply the principles and include all
the elements thereof in determining their respective costs.
Article IX — Open Price — Market Stabiuzation
1. Each member of the industry shall file its prices and all terms
and conditions of sale with the Code Authority within five (5^ days
after the effective date of this Code and make same public by broad-
cast quotations to the tradcj so that competitors, the trade, and the
buying public may at all times have accurate information relative
thereto, and no member of the industry shall deviate therefrom
except in the manner hereinafter provided.
2. Any member of the industry may from time to time change or
revise its prices by filing notice thereof with the Code Authority;
and no member of the industry shall anticipate, by quotation, sale,
contract, or otherwise, any change or revision until after the same
shall have been on file at least five (5) days at the ofiice of the Code
337
Authority. At the expiration of such five (5) day period the said
changes or revisions may, unless the effective date thereof shall be
extended, be made effective, and thereupon shall be made public in
the manner provided in Section 1 hereof.
3. Any member of the industry may meet the prices, terms, and
conditions of sale, established by the above method, as of their effec-
tive date, and no member of the industry shall deviate from the
prices, terms, and conditions of sale, so established, except in the
manner above stated, and all members meeting such changes shall
make same public in the manner provided in Section 1 hereof.
4. Maimer of Procedure on Price Chxinges. — (a) (1) Declines shall
be retroactive on all shipments made within five (5) calendar days
before the effective date thereof.
(2) Advances shall be made effective five (5) calendar days after
expiration of the notice period and the trade shall be given such
notice.
(b) During the five (5) days prior to the effective date of an
advance, current market orders may be booked at the prior price for
shipment not more than 15 days from the date the advance becomes
effective.
(c) Each specific work quotation shall contain a provision per-
mitting withdrawal on five days' notice.
(d) After an advance in price all outstanding quotations on work
for which bids have been opened, which quotations extend longer
than fifteen days from the effective date ox the new price, shall be
withdrawn or revised to expire on such fifteenth day.
(e) All quotations at the prior price, made during the five-day
notice period shall be confined to jobs on which bids are to be opened
prior to ten days from the effective date of the new price. Such
quotations may be closed by contract not later than fifteen days from
the effective date of the new price.
(f) All quotations outstanding on jobs on which bids are to be
opened later than ten days from the effective date of the new price
shall be withdrawn, and any quotations made on such jobs during
the five-day-notice period shall be at the new price.
5. If the Code Authority has reasonable cause to believe, and the
member filing same shall have been so notified, that any price filed at
its office, as above provided, represents a price made pursuant to a
violation of any provision of this Code, the Code Authority may, by
notice to such member, extend the effective date of such price for
a period of not more than ten (10) daj^s in order that investigation
may be made by the Code Authority pursuant to the provisions of
Section 2, Article VIII.
Article X — Unfair CoMPETmoN
For the purposes of this Code, the following acts shall constitute
unfair trade practices and a violation of this Code :
1. Making or promising any bribe, gratuity, gift, or other remu-
neration, not filed and published in accordance with Article IX
hereof, directly or indirectly to any purchaser or prospective pur-
chaser or to any officer, employee, or representative thereof, for the
purpose or with the effect of making a sale of cement; imitating any
838
brand or trademark used by any competitor ; inducing or attempting
to induce in any manner the violation of any existing future sales
order or future sales contract, or other existing contract between a
member of the industry and his customer, with the purpose or effect
of inducing or causing a breach of any such contract ; circulating or
disseminatmg false or misleading information by words or acts rela-
tive to the prices, credit standing, business integrity, or ability to
perform contracts, of any competitor or the grade, quality, count,
character, nature, origin, manufacture, weight, or preparation of his
products.
2. To compensate salesmen in any manner other than upon a fixed
salary and full-time basis.
3. To divert or permit purchasers or users of cement to divert
shipments of cement from one destination to another destination,
the result of which will enable the purchaser or user to secure
cement at less than the member of the industry's published market
price at the point of final destination.
4. The following practices, undertaken for the purpose or with
the effect, directly or indirectly, of furthering the sale or use of a
particular brand of cement shall constitute unfair trade practices
and a violation of this Code:
(a) Except with permission of the Code Authority (and such
permission, when given, shall apply to all companies in the mar-
keting area affected) the purchase, by any member of the industry,
of bonds, or other securities, issued for the financing of constructive
work, either in the name of the member of the industry, its sub-
sidiaries, or of individuals, or ofiicers, connected therewith, or the
acceptance of such bonds, or other securities, in payment, wholly or
in part, for cement, or the advance, loan, or payment of any monies
by a member of the industry for the purpose of inducing the pur-
chase of cement, or to assume cost of Bidders' Bonds or to endorse
or guarantee or in any way relieve a Bidder of the responsibility
for or the expense of providin,g such bonds, unless such conditions
shall have been filed and published in accordance with Article IX.
(b) For the purpose or with the effect of evading the provisions
of Article IX of this Code, the purchase of fuel or other supplies,
either directly or indirectly, or in the name of the company, or its
subsidiaries, or of individuals, or officers connected therewith at
prices above the market price thereof at the time of purchase.
(c) To make or permit to be made, either directly or indirectly,
any secret payment or allowance of rebates, refunds, commissions,
credits, or unearned discounts in the form of money or otherwise,
or to secretly extend to certain purchasers special services or privi-
leges not extended to all purchasers on like terms and conditions.
(d) The prepayment of transportation charges on shipments con-
signed to other than the member of the industry itself, except in the
case of railroad freight charges to stations to which regulations re-
quire prepayment from any shipping point, or the payment of de-
murrage charges by any member of the industry on such shipments;
provided, however, that the foregoing provision, except as to demur-
rage charges, shall not apply to shipments purchased directly by
and consigned to departm.ents of the United States or State Govern-
339
ments, unless such conditions shall have been filed and published
in accordance with Article IX.
(e) Knowingly diverting or permitting to be diverted to other uses,
cement shipped for a specific work project nor knowingly shipping
on a specific work order or contract, an amount of cement in excess
of the actual needs of such work.
(f) To entice maliciously the employees of a competitor with the
intent or effect of interfering with the conduct of the business of
such competitor.
(g) Knowingly to ship cement by any transportation agency which,
for the purpose or with the effect of inducing or influencing the sale
or purchase of cement, makes payments or concessions by rebates or
otherwise.
(h) The payment, or offer to pay, directly or indirectly, any ad-
vertising expenses of purchasers or users of cement.
(i) Lavish, excessive, or undignified entertainment of purchasers
or users of cement, or others connected therewith; donating funds,
or providing banquets or other similar lavish entertainment for pur-
chasers or users, or associations thereof; giving or offering to give
premiums, personal gifts, gifts of cement, or gifts of any other com-
modity of substantial value to purchasers or users of cement.
(j) The sale by any member of the industry, directly or indirectly,
of any commodity at a discriminatory price.
(k) Services to purchasers or users are proper under fair com-
petition, if confined within the limits of advice and consultation.
The furnishing of articles or facilities of a definite physical nature,
whether by way of loan, lease, gift, or otherwise, resulting in mone-
tary benefit to purchasers or users is discriminatory and shall con-
stitute unfair competition.
(1) No member of the industry shall maliciously refuse to sell to,
or maliciously interfere with the business of, dealers or users of
portland cement purchased from a competitor, for the purpose of
interfering with the conduct of the business of such competitor.
Article XI — Method of Selling and Marketing Cement*
The Code Authority may, after the approval of the Administrator
has been secured, authorize and approve such exceptions to or modifi-
cations of any of the following provisions as it may see fit for all
members of the industry in the marketing area affected.
No member of the industry shall discriminate in prices, terms,
and conditions of sale at the same time and place of delivery between
purchasers or users of cement in the same class and similarly
situated.
1. Except as otherwise specified, portland cement shall be mar-
keted in each community through the building material dealers
regularly serving such community.
2. Except as otherwise specified, the following buyers shall be
sold direct by membei's of the industry at the same price and under
the same terms and conditions of sales as to dealers :
United States Government.
State -Governments, Counties, and Parishes when properly author-
ized to purchase cement for public improvements or maintenaiwe.
^Modified by Administrative Order No. 128—4 approved January 23, 1934.
340
Contractors doing any of the foregoing classes of work, except
where such work is located entirely within cities, towns, or villages.
Eailroads filing tariffs with State or Interstate Commissions,
and contractors doing work for such railroads.
Owners or contractors buying for power development, flood con-
trol, and water-supply projects that do not require dealer service.
Concrete Products Manufacturers, including block, tile, roofing,
pipe, piling, and all other precast concrete units when for their own
manufacturing operations, but not for resale.
Commercial concrete mixing plants for their own processing opera-
tions, but not for resale.
3. Definition of a dealer: A cement dealer as used herein is one
who has an established place of business where he is regularly
engaged in selling portland cement and other building materials to
the public, with facilities to serve the retail trade in a given terri-
tory and able and willing to perform all functions devolving upon
him in securing, performing, and protecting contracts for the
delivery of portland cement for specific work on his account.
No member of the industry shall pay to any dealer anv commis-
sions or other remunerations for the sale of such member's cement.
4. Cement shall be marketed on the basis of a barrel, weighing 876
pounds net ; and shall be delivered in the following manner :
(a) In cloth or paper sacks, four (4) sacks of 94 pounds net each
constitute a barrel, or
(b) In bulk computed on weights on scales at the plants or en
route.
6. Cement shall be marketed either on current or market orders tor
delivery within fifteen days, or on orders or contracts for future
delivery beyond fifteen days.
Orders entered for fifteen days' shipment shall be subject to
shipment on the fifteenth day without notice to the purchaser.
Quotations on current orders shall be for immediate acceptance.
Cement purchased for delivery beyond fifteen days from date of
purchase shall be sold either to cover " specific work " or for period
requirements.
0. Application of Exhibits B and C. The booking of either spe-
cific work orders or period requirement contracts from the various
groups of purchasers listed in sections 1 and 2 of this article shall
e as follows:
(a) United States Government: Sell under contracts for delivery
periods as specified in formal requests for bids.
(b) States: Projects on which construction contracts are awarded.
Sell under specific work contracts. Such contracts shall be closed
only after definite award of construction contracts. On request
from States for cement prices on such projects, the prices quoted
shall be not higher than the prices in effect fifteen days prior to the
date on which such States receive construction bids and such prices
shall be good for acceptance within fifteen days after such date for
receiving construction bids.
Purchases for use by State Forces: If any department of the
State undertakes construction work conforming to the general defini-
tion of a specific work project, sell under specific work contract. For
341
requirements of the character of repairs and maintenance, sell under
calendar quarterly contracts.
(c) Counties, Parishes, and Cities: Sell on calendar quarterly re-
quirement contracts.
(d) Railroads: Sell on calendar quarterly basis for general re-
quirements. Specific jobs requiring extended delivery may be sold
under the plan outlined below for specific work contracts, provided
the jobs are covered by appropriations, plans prepared and it is
possible to definitely check the job for location and quantity. Con-
tracts for such specific job shall be limited to shipment for such work
only and shall be closed for a period of not to exceed one year from
date of contract. Cement under such specific job contracts shall nofc
be shipped to any town other than that provided in the contract nor
shall it be diverted for use in general repair or maintenance work.
(e) Owners and Industrials : This title includes industrial projects
and owners thereof, such as coal companies, manufacturing com-
panies, street railways, packing houses^ stockyards, cemeteries, light
and power companies, and all public utilities except railroads having
published tariffs and recognized by public service commissions as
common carriers.
Sell for fifteen days' shipment only, on current or market orders:
when work is done by the owner or industrial specific contracts shall
not be made ; when an owner or industrial awards a specific job to a
contractor and the contractor buys the cement requirements, specific
work contract shall be closed provided the job may be checked
definitely as to location and quantity.
(f ) Conduit construction or repair work by public utilities shall
not be sold for extended delivery but shall be sold for fifteen day
shipment only on current or market orders.
(g) Speculative residential work shall be sold for current delivery
©nly. Any project involving more than one residence for one owner
constitutes a speculative operation.
(h) Products Manufacturers: (1) Manufacturers of blocks, tile,
roofing, and all Products manufacturers not included in (2) below,
shall be sold on calendar quarterly contracts.
(2) Pipe manufacturers and concrete pile manufacturers: For
specific jobs which can be definitely checked for quantity and loca-
tion, sales shall be made on specific contract basis. In general such
specific contracts shall be confined to public work awarded by contract
where the cement requirements can be accurately figured.
An order held by a pipe manufacturer for the year's requirements
of a city, county, state, industrial, or contractor shall not constitute
a specific job. Such orders as well as general requirements of the
plant shall be sold only on calendar quarterly contracts.
(i) Commercial Concrete Mixing Plants: Shall be sold for fifteen
days delivery or for specific job requirements as herein provided; but
shall not be sold for general or period requirements.
7. Time of closing calendar requirement contracts. Contracts for
any quarter shall be quoted or closed not earlier than the first day
of the last month of the preceding quarter.
The basis of a contract (except on sales direct from member of the
industry to user) shall be a binding order placed by the user with a
dealer and a corresponding order placed by the dealer with the
member of the industry.
342
8. Time and Manner of Closing Specific Work Orders. When a
contractor has an order with a building material dealer for a specific
work project, the member of the industry shall book from the dealer
a purchase order for the required amount of cement to be invoiced
at the member's market price at time of shipments. This order shall
be binding on both parties. The parties shall agree in this order that
if the member's price should advance, a specific work contract shall
be entered into at the price prevailing prior to such advance, for
tlie quantity of cement then required to complete the project. The
dealer shall furnish the member of the industry, as the basis for
such contract, his record of the amount of cement delivered to the
contractor prior to the advance in price, together with a verified
■written estimate from a responsible representative of the contractor
of the amount of cement still requirecf to complete the work.
Specific work orders at prices prior to an advance in prices, but
closed during the period immediately following an advance, as de-
scribed in paragraph 8, shall be covered immediately by specific work
contracts, but such contracts shall be supported by the dealer's record
of prior deliveries and the contractor's written estimate of require-
ments as above stated.
9. The provisions of this Article XI are designed to meet present
industrial and social conditions as they relate to the cement indus-
try. But the Administrator and the Code Authority with the
approval of the Administrator reserve the right from time to time,
and after such hearing as they or either of them may deem necessary,
to modify the foregoing provisions of this Article as conditions and
circumstances may indicate to be necessary to effectuate the policy
and provisions of the Act.
Article XII — Terms and Conditions of Sale
1. All future sales orders and future sales contracts for the sale
of Portland cement shall contain a definite statement of price, quan-
tities, terms of payment, time and place of delivery, and all other
terms of sale necessary to form a complete and unambiguous contract.
2. No member of the industry shall substitute for a contract or
purchase order already executed and in force, a new contract or
purchase order for the same requirements at a lower price or on
more favorable terms to the purchaser than are contained in the
original contract or purchase order.
3. Attached hereto and marked Exhibits B and C are forms of
future specific sales orders, and contracts, the provisions, terms, and
conditions of which have been agreed to by members of the industry
as representing in substance the best practices within the industry.
4. Terms of payment shall be as follows : A cash discount of not
in excess of 100 per barrel may be deducted from invoices paid in
full within fifteen days from date of issue. Invoices not discounted
are payable net thirty days from date of issue.
(a) Where purchases involve frequent shipments, a plan of semi-
monthly remittance, based on a fifteen-day average, may be used as
follows :
All invoices dated from first day of month to fifteenth day of
month, inclusive, to be paid by the 22d of that month ; and all in-
343
voices dated 16th to 31st, inclusive, to be \>aid by the 7th day of the
following month.
(b) Cash discount shall not be allowed if remittance is forwarded
after the expiration of the 15-day period, or semimonthly period;
or if deduction is made in the remittance for cloth sacks to be re-
turned or in transit and not yet credited; or if the remittance con-
sists in whole or in part of notes, trade acceptances, scrip, warrants
(whether interest bearing or not), or any medium other than cash
or bankable check for the full amount of the invoices upon which
cash discount is deducted.
(c) The postmark date at point of mailing shall determine the
date of remittance.
(d) No unearned discounts shall be allowed.
5. Package charges and allowances :
(a) When cement is shipped in cloth or paper sacks the price
shall include the member of the industry's published deposit or leas-
ing charges for cloth sacks or the selling charge for paper sacks and
payment of such charges shall be required at the same time as the
cement.
(b) When used cloth sacks are returned empty to the member of
the industry the credit or allowance shall at all times be in accord-
ance with the member's published terms and conditions of sale.
6. Invoices : Invoices shall be dated as of the date of shipment
(provided where special and unusual conditions prevail, the members
of the industry in the district or districts concerned, may, subject
to the approval of the Code Authority, change this provision to con-
form to such special and unusual conditions) and shall contain full
information as to price, quantity, kind of package, terms of pay-
ment, place of deliveries, routing, amount of freight allowed, and
any other data necessary to show fully all conditions entering into
the sale. Any deviation or concession from these conditions is an
unfair practice.
Article XIII — Standakdization of Products
1. All Portland Cement marketed by members of the industry
shall comply with the standard specifications for Portland Cement
of the American Society for Testing Materials, and the American
Standards Association, and/or the Federal Specification Board.
Members of the industry may sell cement under modified Portland
Cement specifications that are designed to meet special or unusual
conditions not adequately or properly covered by the specifications
hereinabove referred to, provided, however, that the price at which
such modified Portland Cfemenis are sold shall be filed with the Code
Authority.
2. Every member of the industry shall guarantee his products to
comply with all of the conditions of the specifications under which
they are sold, but shall not be responsible for the improper use of
cements and therefore shall not guarantee finished work, nor shall
the member of the industry be responsible for condition of product
after delivery.
3. No member of the industry shall pay or absorb, directly or
indirectly, any charges for inspection or tests made by or on behalf
of the purchaser to determine compliance with specifications therefor.
344
Ariicle XIV
It is the concensus of opinion of the industry that each member
thereof should bear his proportionate share of the burden of the
cost of constructive cooperative activities approved and supported
by the majority of the Industry and whose benefits are common to
all manufacturers.
Article XV
Nothing in this Code contained, excepting, however, the provisions
of Article III, shall be deemed to apply to or affect the sale by any
member of the industry of any products of the industry for direct
shipment in export trade.
Article XVI — ]MoDiricATioN
1. 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 N.I.R.A. 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 any provision of this Code or any conditions imposed by him upon
his approval thereof.
2. Whenever the Administrator shall determine such action by him
to be necessary to effectuate the policy of the Act, he may modify or
cancel any action pursuant to this Code by any agency established
thereunder.
3. Except as to the provisions required by the Act, this Code may
be modified on the basis of experience or changes in circumstances,
such modifications to be based upon application to the Administra-
tor, on such notice and hearing as he shall specify and to become
effective on approval by the President.
Article XVII — ^JSIonopglies
No provision of this Code shall be so construed or applied as to
permit or promote monopoly or monopolistic practices, or to elimi-
nate, oppress, or discriminate against small enterprises.
Article XVIII — Effectia-e Date
The effective date of the Code shall be ten days after approval
thereof by the President.
Approved Code No. 128.
Registry No. 1010-1-02.
EXHIBIT A
Districts
The twelve (12) geographical districts as described by the United States
Bureau of Mines are as follows :
District No. 1 — Eastern Pennsylvania, New Jersey, Maryland.
No. 2 — New York, Maine.
No. 3 — Western Pennsylvania, Ohio, "West Virginia.
No. 4 — Michigan.
No. 5 — Wisconsin, Illinois, Indiana, Kentucky.
No. 6 — Virginia, Tennessee, Alabama, Georgia, Florida, Louisiana,
No. 7 — Eastern Missouri, Iowa, Minnesota, South Dakota.
No. 8— Western Missouri, Nebraska, Kansas, Oklahoma, Arkansas.
No. 9— Texas.
No. 10 — Colorado, Montana, Utah, Wyoming, Idaho.
No. 11 — California.
No. 12 — Oregon, Washington.
(345)
EXHIBIT B
(Specific sales order)
To
Name and Address of Cement Company
We have sold to Contractor
Barrels of (Brand) Portland Cement for
(Fraction or all)
of his requirements on the following specific work awarded him :
(Character, description, and location of work, and name of owner)
We hereby place with you our order for the above quantity of (Brand)
Portland Cenaent, to be packed in (sacks),
for use on the above work, at your prevailing market price at time of shipment^
subject to the conditions stated on both sides hereof.
We will desire delivery made, as the work requires, upon our instructions in
carload lots, F.O.B. cars deliveries to be complete prior
to
It is expressly understood and agreed :
1. That if you advance your market price prior to the completion of ship-
ments on this order, you will, within ten (10) days of the effective date of such
advance, enter into your standard form of specific work contract with us, at
the price prior to such advance, for the quantity of cement that may at that
date be required for the completion of the work covered by this order.
2. That as a basis for such specific work contract, we will supply you with
our record of cement delivered to the contractor prior to the time of your
advance in price, together with a written estimate from the contractor, or a
responsible employee of the contractor, of the quality of cement then required
to complete the work.
Signed:
Date :
Accepted :
Cement Company.
(Officer)
Date:
Terms of Payment. — On approved credit net cash 30 days, from date of in-
voice, or 10 cents per barrel discount for cash in 15 days from date of invoice.
If at any time the financial responsibility of Buyer becomes impaired or
unsatisfactory to SeUer, it reserves the right to require payments in advance or
satisfactory security or guarantee that invoices will be promptly paid when due.
If Buyer fails to comply with terms of payment, or with any of the other
terms of sale. Seller reserves the right to cancel unfilled portion of this order,
without notice. Buyer remaining liable for all unpaid accounts. No waiver of
such right shall be implied from any failure by Seller to exercise the same.
Package. — Cloth sacks bearing Seller's brands, in which cement herein con-
tracted for is packed, are the property of Seller and are for a period of 00 days
from the delivery by Seller of the said cement, leased by it to Buyer at a charge
of 10 cents each, which charge is included in price for cement packed in cloth
sacks and which charge Buyer agrees to pay at same time and on same terms
as payment for cement is made.
Buyer agrees within 90 days of delivery of the cement to deliver to Seller^
the owner, at its nearest plant, freight charges collect, as provided by railroad
classifications and tariffs, properly bundled and so marked as to insure complete
identification, the cloth sacks bearing Seller's brands, in which the said cement
is packed, and Seller agrees to refund to Buyer 10 cents for each said cloth
sack so delivered in good condition, subject to Seller's count and inspection, and
to assume freight charges thereon. If for any reason freight charges (per
railroad tariffs) are prepaid, they will be refunded by Seller upon presentation
of Railroad Company's receipted freight biU or bill of lading.
(346)
347
For useless cloth sacks which have been wet, no refund will be made.
Cloth sacks bearing other than Seller's brands will be held by Seller for 30
days subject to Buyer's order.
In the event that any of the said empty cloth sacks bearing Seller's brands
are sold or otherwise disposed of by Buyer to any person other than Seller,
the owner. Buyer agrees to pay Seller, as liquidated damages, 10 cents for each
cloth sack so sold or disposed of.
If during the life of this order. Seller shall change its present charge for the
lease of cloth sacks, or the liquidated damages, or both, it is expressly agreed
that the said amount or amounts in the preceding paragraphs shall be changed
accordingly, and the gross price specified herein for cement packed in cloth
sacks shall be changed in accordance with the change in charge for lease of
cloth sacks.
Price on cement packed in paper bags includes the paper bags, which are not
returnable. Shipments in paper bags are made at Buyer's risk of breakage
and resultant loss of cement.
(If c&ment company requires a deposit for cloth sacks, instead of leasing
them, the following clauses are suggested) :
Package. — The cloth sacks, bearing Seller's brand, containing the cement
are not sold, but remain the property of Seller. Buyer agrees to return said
cloth sacks, properly bundled and marked so as to secure complete identifica-
tion, to Seller's nearest mill, within ninety (90) days from the date shipment
of cement has been made.
Seller agrees to refund to Buyer the deposit of ten cents for each cloth sack
so returned. This deposit has been included in the price herein stated and
Buyer agrees to include it when payment for the cement is made.
It is, however, expressly understood that such cloth sacks must be delivered
to Seller's mill in good condition and will be subject to mill count and inspec-
tion, and that no refund will be made for useless cloth sacks, nor for cloth
sacks not of Seller's brand. Such cloth sacks, if received, will be held by Seller
for thirty (30) days subject to Buyer's order and risk.
Seller agrees to pay carrier's freight charges on returned empty cloth sacks
of Seller's brand after delivery to its nearest mill or to refund Buyer for freight
charges prepaid on such shipments upon presentation of original bill of lading
properly executed or original receipted freight bill.
If Seller shall change its present deposit required for cloth sacks, it is
expressly agreed that the said amounts in the preceding paragraphs shall
be changed accordingly and the gross price specified herein for cement packed
in cloth sacks shall be changed in accordance with the change of deposit
required.
Price on cement packed in paper bags includes the paper bags which are
not returnable. Shipments in paper bags are made at Buyer's risk of breakage
and resultant loss of cement.
Claims. — Claims for loss or damage will not be considered unless supported
by seal record and railroad agent's acknowledgment on freight bill. Freight
overcharge claims must be accompanied by original receipted freight bill.
Time of delivery. — Buyer shall give Seller shipping instructions in writing
a reasonable time before shipments are to be made. If Buyer fails to order
shipment within the time specified Seller shall have the right to extend the
time for delivery of such cement, but shall not be obligated to do so, except
at its option.
The Seller reserves the right to select the route and method by which ship-
ments shall be forwarded, but no Seller can be required to favor any one route
or method of transportation as against another by any joint action of the
members of the industry or the Code Authority. Transportation charges per
tariff applying from shipping point to place of delivery for route and method
of shipment used, will be paid by the Buyer for the account of the Seller.
Seller shall not be liable to Buyer for any delays in manufacturing, shipping,
or delivering said cement, caused by fire, strikes, lockouts, differences with
workmen, accidents, war, insurrection, inability to secure cars, coal, or other
material, governmental interference or regulation, delays in transportation or
contingencies beyond Seller's control ; and during the time of such delays Seller
shall hnve the right to pro rate among its various customers such cement as
it may be able to manufacture and ship.
Specifications. — The cement shipped under this order shall conform to the
present standard specifications for Portland Cement of the American Society
348
for Testing Materials and the American Standards Association and/or the
Federal Specification Board, and no other warranty is made In respect thereof.
Seller having no control over tie use of cement will not, therefore, guarantee
finished work in which it is used, nor shall the Seller be responsible for the
condition of cement after delivery to Buyer. Any charges Incident to inspec-
tion or tests made by or on behalf of Buyer to determine compliance with
Epeoitications shall be paid by Buyer.
Seller's prevailing market price may be advanced by the amount of any
increase in freight rates and/or any additional Government tax on freight
and/or the amount of any tax on sales or contracts of sale effective after the
date hereof without imposing on Buyer the obligation to enter into Seller's
standard form of specific work contract, as provided in paragraph 1 hereof.
EXHIBIT O
(Form of future specific sales contract)
Agreement made this day of 193 ,
between Cement Company, laereinafter called
Seller and of
hereinafter called Buyer:
Seller hereby sells and agrees to funiish and deliver and Buyer hereby buyg
and agrees to receive and pay for Portland Cement in the quantity and on the
terms and conditions hereinafter and on the back hereof set forth.
Desoription and quantity. — The purpose of this contract is to cover the pur
chase and sale of all the Portland Cement required to complete the work
hereinbefore described, whether more or less than the quantity stated herein.
Buyer represents that the aforesaid number of ban-els of cement will be used
in the construction of the above-described work and agrees that no portion of
such cement will be used for any other purpose Avithout the written consent
of Seller. If any of the cement shipped hereunder is recousigned or diverted
by Buyer from the place of delivery specified herein or used for any other
purpose, Seller may cancel this contract and refuse to ship any more cement
and Buyer agrees to pay Seller's market price at the place of final destination
for such cement as has been diverted by Buyer from the place of delivery
specified herein or has been used by Buyer for any other purpose than the
purjwse above specified ; Buyer remaining liable for all unpaid accounts.
Place of delivery. — F.O.B
Time of delivery. — Prior to
as required by the progress of the work. Buyer shall give Seller shipping
instructions in writing a reasonable time before shipments are to be made.
If Buyer fails to order shipment within the time specified Seller shall have the
right to extend the time for delivery of such cement, but shall not be obligated
to do so, except at its option.
Price. —
Per standard barrel, in cloth .sacks $
Per standard barrel, in i>aper bags $
Per .standard barrel, in bulk $
Price includes freight at present rates and will be increased by the amount of
any increase in freight rate and/or any additional Government tax on freight
and/or by the amount of any tax on sales or contracts of sale effective during
the life of this contract. All shipments made on this contract will be at the
current destination price of Seller on the date of shipment, if this price is
below the contract destination price mentioned herein.
Terms of payment. — On approved credit net cash 30 days from date of in-
voice, or 10 cents per barrel discount for cash in 15 days from date of invoice.
If at any time the financial re.spousibility of Buyer becomes impaired or un-
satisfactory to Seller, it reserves the right to require payments in advance or
satisfactory security or guarantee that invoices will be promptly paid when due.
If buyer fails to comply with terms of payment, or with any of the other terms
of sale, Seller reserves the right to cancel unfilled portion of this contract, with-
out notice. Buyer remaining liable for all unpaid accounts. No waiver of such
right shall be implied from any failure by Seller to exerci.se the same.
This contract is not assignable by Buyer without the consent of Seller in
writing.
-Cemein^t Company.
By By
(Buyer) (Seller)
Package. — Cloth sa<'ks bearing Seller's brands, in which cement herein con-
tracted for is packed, are the property of Seller and are for a period of 90
days from the delivery by Seller of the said cement, leased by it to Buyer at a
charge of 10 cents each, which charge is included in price of cement packed in
(349)
350
cloth sacks and which charge Buyer agrees to pay at same time and on same
terms as payment for cement is made.
Buyer agrees within 90 days of delivery of the cement to deliver to Seller,
the owner, at its nearest plant, freight charges collect, as provided by railroad
classifications and tariffs, properly bundled and so marked as to insure com-
plete identification, the cloth sacks bearing Seller's brands, in which the said
cement is packed, and Seller agrees to refund to Buyer 10 cents for each said
cloth sack so delivered in good condition subject to its count and inspection,
and to assume freight charges thereon. If for any reason freight charges
(per railroad tariffs) are prepaid, they will be refunded by Seller upon pre-
sentation of Railroad Company's receipted freight bill or bill of lading.
For useless cloth sacks which have been wet, no refund will be made. Cloth
sacks bearing other than Seller's brands will be held by Seller for 30 days subject
to Buyer's order.
In the event that any of the said empty cloth sacks bearing Seller's brands
are sold or otherwise disposed of by Buyer to any person other than Seller,
the owner, Buyer, agrees to pay Seller, as liquidated damages, 10 cents for
each cloth sack so sold or disposed of.
If during the life of this contract. Seller shall change its present charge for
the lease of cloth sacks, or the liquidated damages, or both, it is expressly
agreed that the said amount or amounts in the preceding paragraphs shall be
changed accordhigly, and the gross price specified herein for cement packed in
cloth sacks shall be changed in accordance with the change in charge for lease
of cloth sacks.
Price on cement packed in paper bags includes the paper bags, which are not
returnable. Shipments in paper bags are made at Buyer's risk of breakage
and resultant loss of cement.
(If cement company requires a deposit for cloth sacks, instead of leasing
them, the following clauses are suggested) :
Packaffc. — The cloth sacks, bearing Seller's brand, containing the cement are
not sold, but remain the property of Seller. Buyer agrees to return said cloth
sacks, properly bundled and marked so as to insure complete identification, to
Seller's nearest mill, within ninety (90) days from the date of shipment of
cement has been made.
Seller agrees to refund to Buyer the deposit of ten cents for each cloth sack
so returned. This deposit has been included in the price herein stated and
Buyer agrees to include it when payment for the cement is made.
It is, however, expressly understood that such cloth sacks must be delivered
to Seller's mill in good condition and will be subject to mill count and inspec-
tion, and that no refund will be made for useless cloth sacks nor for clotli
sacks not of Seller's brand. Such cloth sacks, if received, will be held by
Seller for thirty (30) days subject to Buyer's order and risk.
Seller agrees to pay carrier's freight charges on returned empty cloth sacks
of Seller's brand after delivery to its nearest mill or to refund Buyer for
freight charges prepaid on such shipments upon presentation of original bill
of lading properly executed or original receipted freight bill.
If Seller shall change its present deposit required for cloth sacks, it is ex-
pressly agreed that the said amounts in the preceding paragraphs shall be
changed accordingly and the gross price specified herein for cement packed in
cloth sacks shall be changed in accordance with the change of deposit required.
Price on cement packed in paper bags includes the paper bags which are not
returnable. Shipments in paper bags are made at Buyer's risk of breakage and
resultant loss of cement.
Claims. — Claims for loss or damage will not be considered unless supported
by seal record and railroad agent's acknowledgement on freight bill. Freight
overcharge claims must be accompanied by original receipted freight bill.
The Seller reserves the right to select the route and method by which ship-
ments shall be forwarded, but no Seller can be required to favor any one route
or method of transportation as against another by any joint action of the mem-
bers of the industry or the Code Authority. Transportation charges per tariff
applying from shipping point to place of delivery for route and method of ship-
ment used, will be paid by the Buyer for the account of the Seller.
Specifications. — The cement shipped under this contract shall conform to the
present standard specifications for Portland Cement of the American Society
for Testing Materials and the American Standards Association and/or the
Federal Specifications Board, and no other Warranty is made in respect thereof.
351
Seller having no control over the use of cement will not, therefore, guarantee
finished work In which it is used, nor shall the Seller be responsible for the
condition of cement after delivery to Buyer. Any charges incident to inspection
or tests made by or on behalf of Buyer to determine compliance with specifica-
tions shall be paid by Buyer.
Seller shall not be liable to Buyer for any delays in manufacturing, shipping,
or delivering said cement, caused by fire, strikes, lockouts, differences with
workmen, accidents, war, insurrection, inability to secure cai-s, coal, or other
material, governmental interference or regulation, delays in transportation, or
contingencies beyond Seller's control ; and during the time of such delays Seller
shall have the right to prorate among its various customers such cement as it
may be able to manufacture and ship.
Seller shall have the right, but shall not be obligated, to ship from any plant
other than the one normally supplying the delivery point specified herein.
Bulk cement. — Shipments of bulk cement shall be invoiced and collected for
on a basis of track scale weights nearest to point of origin,
o
Approved Code No. 129
CODE OF FAIR COMPETITION
FOR THE
RADIO BROADCASTING INDUSTRY
As Approved on November 27, 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 Radio Broadcasting 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 com-
petition 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 ic, 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 21, 1933.
(353)
23778° 244-97-
November 23, 1933.
The President,
The White House.
Sir : A proposed Code of Fair Competition for the Radio Broad-
casting Industry was submitted to the Administrator on August 29,
1933, by the National Association of Broadcasters, Inc. The Asso-
ciation is an established trade association of long standing and is
the only trade association in the Industry. It represents approxi-
mately forty-five (45%) percent of the stations by numbers and
over eighty-three (83%) percent of the volume of business done
within the Industry.
A Hearing was conducted in Washington, D.C., on Sei^tember 27,
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 heard in accordance with statutory and
regulatory requirements. Communications received from interested
parties who had not requested to be heard were read into the record.
Radio Broadcasting in its present form is a comparatively new
development. It embraces the complete operation of all stations
or networks designed for broadcasting, including, in connection with
such operations, the preparation and production of programs both
sponsored and unsponsored for the purpose of providing entertain-
ment, instruction, and general service through the agency of radio
broadcasting.
Article III — Hours
This Article provides that no employee shall be permitted to work
in excess of 40 hours in any one week, except that such hourly limi-
tations do not apply to employees in managerial or executive capacity
who receive not less than $35 per week in the larger stations, nor to
the same class of employees who receive not less than $25 per week
in radio broadcasting stations in which, on July 1, 1933, not more
than ten persons were regularly employed. Further, such hourly
and daily limitations do not apply to employees on emergency main-
tenance or emergency repair work, but overtime is to be paid for
hours worked in excess of the maximum. Broadcast technicians are
permitted to work 48 hours per week. Regarding this class of
employees there was a lack of reliable statistics covering the number
of hours which they now work, and faced with this lack of statistics
it was deemed necessary to allow a 48-hour week pending the report
of the Code Authority on a stud}'^ to be made within ninety (90)
days. The hours of such employees now vary from a minimum of 36
hours to a maximum of over 80. Approval of a 48-hour week for
the next ninety (90) days has been given by the Advisers to the
Deputy.
Those stations which now operate on the basis of a lesser number of
hours per week are limited to those hours and may not increase their
(354)
355
working week for broadcast technicians to 48. Overtime is not per-
mitted within the Industry except in the case of an emergency
worker.
It is the first time Avithin the Indiistr}^ that there has been a classi-
fication of workers, minimum rates of pay, or maximum number of
hours of employment. The reduction in hours will require the re-
emplo3'ment of some 765 men, or an increase of 350 men over the
total employed within the Industry for any previous period.
Article IV — Wages
Nontechnical emploj^ees are guaranteed the wages provided in the
President's Reemployment Agreement. The guaranteed wage for
broadcast operators and control men varies in amount according to
the Federal Eadio Commission classification of the station by which
they are employed, as follows :
(a) Clear channel or high-power regional stations not less than
$40 per week;
(b) Clear channel part-time or low-power regional stations not
less than $30 per week ;
(c) Low-power part-time regional, local unlimited, or local part-
time stations not less than $20 per week. Such employees in the
past have been paid as little as $9 per week in some of the small
stations. Announcers and program production employees are to
receive not less than $20 per week, except in the very small stations
where they are to receive not less than $15.
The employers agree not to reduce the compensation for employ-
ment now in excess of minimum wages, notwithstanding that the
hours may be reduced, and to increase the pa}'' for such employment
by an equitable readjustment.
There is no discrimination between the sexes in rates of pay.
Article V — General Labor Provisions
No one under sixteen years of age is to be emploj-ed within the
Industry, except as talent on programs and then for not more than
three hours per day, and those hours to be such as will not interfere
with school hours.
This Article embodies Paragraph (a) Section 7 of Title I of the
National Industrial Recovery Act. It further provides that working
conditions shall not be changed to frustrate the intent and purpose
of this Code.
In the proposed Code there is constituted a named Code Authority
of nine (9) comprising representatives of independent stations, the
Special Adviser, the Industrial Adviser, and the Labor Adviser
on the Code, two representatives of the broadcasting networks, and
in addition not more than three members to be appointed by the
Administrator. The members of the Code Authority, with long
experience and training within the Industry, were named so that
there might be no delay in instituting the investigations which are
required of that body, and in maldng recommendations to the Ad-
ministrator for a permanent form of organization for the admin-
istration of the Code.
856
ECONOMIC EFFECT
The provisions of the Code will require reemployment of 765 men
and will increase existing pay rolls and the buying power of this
group at the estimated rate of $1,328,000 per year. The total pay
rolls under the Code will be more than double those of 1929. More
stations are now in operation and more individuals employed than
there were in 1929. My information indicates that there will be no
increase in rates charged for facilities, so the consumer should not
be adversely affected. The Industry will be required to absorb the
greater operating costs.
The Research and Planning Division reports that the Code is
designed to improve conditions in the Radio Broadcasting Industry,
and that they are satisfied with the Code as it stands.
FIKDINGS
The Administrator finds that:
(a) This Code complies in all respects with the pertinent 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 representa-
tive of the Radio Broadcasting Industry, and the By-Laws of the
Association representing the divisions thereof provide no inequitable
restrictions to membership ;
(c) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
Respectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
RADIO BROADCASTING INDUSTRY
Article I — Purposes
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Radio Broadcasting Industry, and upon
approval by the President shall be the standard of fair competition
for such Industry and shall be binding on every member thereof.
Article II — Definitions
1. Radio Broadcasting^ as used herein, means the transmission
through space by means of any radio frequency of signals intended
to be received, whether audibly or visually, directly by the public.
2. Radio Broadcasting Industry^ as used herein, embraces the com-
plete operations of all broadcasters, or networks designed for broad-
casting as above defined, including, in connection with such opera-
tions, the preparation and production of programs, both sponsored
and unsponsored, for the purpose of providing entertainment, in-
struction, and general service through the agency of radio broad-
casting.
3. Broadcaster^ as used herein, means any individual, partnership,
corporation, association, or other form of enterprise engaged in the
radio-broadcasting industry as above defined.
4. Network., as used herein, means any individual, partnership,
corporation, association, or other form of enterprise in the business
of regularly supplying, by wire or vv'ireless, programs for broad-
casting, simultaneously to two or more radio-broadcasting stations.
5. Ein-ployee., as used herein, means any person engaged in the
industry and employed by a broadcaster or network at a regular
hourly, daily, weekly, or monthly salary or wage, as distinguished
from an independent contractor or a professional person who is paid
by the job or performance.
6. Employer., as used herein, means any broadcaster or network
engaged in the industry.
T. Broadcast Technician., as used herein, means any person em-
ployed for the operation or maintenance of any transmitting, control,
or input equipment used in radio broadcasting.
8. Act and Administrator, as used herein, mean respectively Title
I of the National Industrial Recovery Act and the Administrator for
Industrial Recovery.
Article III — Hours
1. No employee shall be permitted to work in excess of forty
hours in any one week, except those included in the classes enumer-
ated in paragi'aph number two hereof.
(357)
358
2. The maximum hov.rs fixed in the foregoing paragraph number
one shall not apply to :
(a) Emploj^ees in a managerial or executive capacity (including
announcers, production men, and chief ojjerators) who receive more
than thirty-five dollars per week; employees in a managerial or
executive capacity (including announcers, production men, and chief
operators) who receive more than twenty-five dollars per week in
radio broadcasting stations in which on Julj- 1, 1933, not more than
ten persons were regularly employed.
(b) Outside salesmen.
(c) Emploj'^ees on emergency maintenance and emergency repair
work but at least one and one-half times the normal rate shall be
paid such employees for hours worked in excess of the maximum
hours provided in Section 1 of this article.
(d) Broadcast Technicians, wdth respect to whom the maximum
hours of work shall not exceed forty-eight hours per week.
(e) Persons employed on special event programs of public interest,
with respect to whom the maximiim hours of work shall not exceecl
the number of hours herein prescribed for their class of work aver-
aged over any six weeks' period.
Article IV — Wages
1. No employee, except those enumerated in paragraphs (a), (b),
and (c) hereof shall be paid at less than the weekly rate of fifteen
dollars per week in any city of over 500.000 population or in the
immediate retail trade area of such city; or at less than the rate of
fourteen dollars and fifty cents per week in any city of between
250,000 and 500,000 population or in the immediate retail trade area
of such city; or at less than the rate of fourteen dollars per week
in any city of between 2,500 and 250,000 population or in the imme-
diate retail trade area of such city ; or at less than the rate of twelve
dollars per week in any town or place of less than 2,500 population.
Population for the purpose of this Code, shall be determined by the
1930 Federal Census.
(a) Broadcast operators and control men shall be paid at a rate
of not less than forty dollars per week when they are employed at
any radio broadcasting station classified by the Federal Kadio Com-
mission as a clear channel or high-power regional station; or at a
rate of not less than thirty dollars per week when they are emplo3^ed
at any broadcasting station classified b}' the Federal Radio Com-
mission as a clear channel part-time or low-power regional station,
unless such station on July 1, 1933. regularly employed not more
than three broadcast operators and control men, in which case the
rate of pay shall be not less than twenty dollars per week; and at
a rate of not less than twenty dollars per week at any broadcasting
station classified by the Federal Radio Commission as a low-power
part-time regional, local unlimited, or local part-time station. Em-
ploj'ers shall be entitled to employ as apprentices persons learning
the technique of radio broadcasting control and transmission. Such
apprenticeship within the Industry shall not exceed a cumulative
period of twelve months. The number of persons so employed, if
more than one, shall not exceed five percent of the total number of
359
regular employees of each employer. The rate of pay of apprentices
shall be not less than tAvelve dollars per week.
(b) Announcers and program production employees shall be paid
at a rate of not less than $20 per week, except that where a broad-
caster regularly employed not more than ten persons on July 1, 1933,
such announcers and program production emploj^ees may be paid not
less than $15 per week.
(c) The minimum rate of pay herein provided shall not apply to
outside salesmen working on commission only.
2. Employers agree not to reduce the compensation for employ-
ment now in excess of the minimum wages hereby agreed to (not-
withstanding that the hours worked in such employment may be
hereby reduced) and to increase the pay for such employment by
an equitable readjustment of all pay schedules. Where a State law
provides a higher minimum wage than is provided in this Code,
no person employed within that State shall be paid a wage below
that required by such State law.
Article V — General Labor Provisions
1. After the effective date of this Code, employers will not employ
any person under sixteen years of age, except that persons under
sixteen may be used as talent on programs for not more than three
hours per day, and those hours to be svich as will not interfere with
their schooling. Provided, however, that where a State law pro-
vides a higher minimum age, such State law shall be controlling.
2. Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers
of labor, or their agents, in the designation of such representatives
or in self -organization, or in other concerted activities, for the pur-
pose of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be reqviired
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.
4. Emploj'ers shall comply with maximum hours of labor, mini-
mum lates of pay. and other conditions of employment, approved
or prescribed by the President.
5. Working conditions in any broadcasting station or network
shall not be changed to frustrate the intent and purpose of this Code.
Where on November 1, 1933 any broadcaster paid broadcast tech-
nicians wages in excess of the minimum herein provided for or
worked such employees a lesser number of hours per week than
herein permitted, such higher wages and such lesser number of hours
shall be deemed to be and are hereby declared to be the minimum
scale of wages and maximum number of hours with respect to such
stations.
6. Nothing herein contained shall be construed to apply to em-
ployees whose rates of wages, hours, and/or weekly full-time wages
are established by labor agreement, understandings or practices now
in force, where such minimum rates of pay are higher and the maxi-
360
nium number of hours per week are lower than those set forth
herein above.
7. All employers shall post complete copies of this Code in con-
spicuous places accessible to employees.
Article VI — Administration
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the ad-
ministration of this Code.
1. The Code Authority shall consist of James W. Baldwin, Isaac
Z. Buckwalter, John Elmer, James Kiernan, Alfred J. McCosker,
Edward N. Nockels, N. R. Runyon, Frank M. Russell, John Shepard,
III, and in addition thereto there may be three members without vote
to be appointed by the Administrator, who, together with the Ad-
ministrator, shall be given notice of and may sit at all meetings of
the Code Authority.
2. 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.
3. The Code Authority shall investigate the hours of labor and
the wages of radio artists and performers (other than musicians),
and upon the completion of its investigation shall report thereon
to the Administrator.
4. The Code Authority shall investigate the hours of labor, wages,
and working conditions of broadcast technicians and the relation
thereof to general conditions within the industry, and within a period
of ninety days from the effective date of this Code, shall report
thereon to the Administrator.
5. As and when any question directly or indirectly affecting any
class of employees engaged in the Radio Broadcasting Industry
is to he considered by the Code Authority, one representative of
such class, selected by the Administrator from nominations made
by such class in such manner as may be prescribed by the Admin-
istrator, shall sit with and become for such purposes a member of
the Code Authority with a right to vote.
6. In addition to information required to be submitted to the
Code Authority there shall be furnished such statistical information
as the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the National Industrial Recovery Act.
7. The Code Authority shall recommend to the Administrator a
permanent form of organization for the administration of this Code.
8. Members of the broadcasting industry shall be entitled to i^ar-
ticipate in and share the benefits of the activities of the Code Au-
thority 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 administra-
tion. Such reasonable share of the expenses of administration shall
361
be determined by the Code Authority, subject to review by the Ad-
ministrator, on the basis of vokime of business and/or such other
factors as may be deemed equitable.
9. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
act of any other member, officer, agent, or employee of the Code
Authority exercising reasonable diligence in the conduct of his duties
hereunder, or be liable to an5^one for any action or omission to act
under the Code, except for his own willful misfeasance or non-
feasance.
10. The Code Authority shall have the following powers and duties
in addition to those elsewhere provided in this Code, subject to the
right of the Administrator, on review, to disapprove or modify any
action taken by the Code Authority:
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accord-
ance with the powers herein granted, and to submit the same to the
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the
Act.
(b) To obtain from members of the industi*y for use of the Code
Authority, for the Administrator in the administration and enforce-
ment of the Code, and for the information of the President, reports
based on such periods as may be determined by the Code Authority
as soon as the necessary readjustment within the industry can be
made and to give assistance to members of the industry in improving
methods, or in prescribing a uniform system, of accounting and re-
porting. All individual reports shall be kept confidential as to the
members of the industry and only general summaries thereof may be
published.
(c) To receive complaints of violations of this Code, make investi-
gations thereof, provide hearino;s thereon and adjust such complaints,
and bring to the attention of the Administrator for prosecution,
recommendations, and iiiformation relative to unadjusted violations;
in no event shall the Code Authority proceed to prosecute without
notice to and approval by the Administrator.
(d) To use such trade associations and other agencies as it deems
E roper for the carrying out of any of its activities provided for
erein and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity 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.
(e) To coordinate the administration of this Code with such other
codes, if any, as may be related to the industry, or any subdivision
thereof, and to delegate to any other administrative authority, with
the approval of the Administrator, such powers as will promote joint
and liarmonious action upon matters of common interest.
(f) To secure an equitable and proportionate payment of the ex-
penses of maintaining the Code Authority and its activities from
members of the Industry.
362
(g) To cooperate with the Administrator in regulating the use of
the N.R.A. Code Insignia solely by those employers who have
assented to and are complying with this Code.
(h) Where the operations of the provisions of this Code impose an
unusual or undue hardship upon any broadcaster or network such
broadcaster or network may make application for relief to the Ad-
ministrator 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 modification of the provisions
of this Code as may be required to effectuate the purpose of the
National Industrial Recovery Act.
(i) To initiate, consider, and make recommendations for the modi-
fication or amendment of this Code.
11. An appeal from any action by the Code Authority affecting
the rights of any employer or employee in the Industry may be taken
to the Administrator.
Article VII — Trace Practices
1. Rates, Gommiissions, and Discounts. — (a) Each broadcaster-
and network shall forthwith publish and file with the Code Author-
ity a schedule of all its rates regularly and currently charged to
advertisers for the use of broadcasting time, together with all dis-
counts, rebates, refunds, and commissions which shall be allowed to
the users of such time or to their recognized agents, such schedule to
be known as the Rate Card. No Rate Card or rate charged there-
under shall be modified until fifteen days after the filing with the
Code Authority of the Rate Card with the proposed modifications.
Charges for the use of broadcasting time, and discounts, rebates,
refunds, and commissions allowed to the users of such time or their
recognized agents shall be in exact accordance with such Rate Card
except that under conditions not specifically covered by the Rate
Card, charges for the use of broadcasting time may be at special
rates provided a full written statement of such special rates and
conditions is filed immediately with the Code Authority, vv^hich
authority shall be authorized to publish such statement in full.
In no event shall modifications of the Rate Card, special rates or
special conditions violate any of the terms of this Code.
(b) Any attempt to evade the provisions of this Code through
the offer or payment of excessive or unearned commissions, discounts,
rebates, refunds, gratuities, or free time (other than legitimate pro-
gram announcements) and any business done on a cost per-inquiry,
contingent, or percentage basis shall be deemed unfair trade prac-
tice within the meaning of this Code.
2. Special Services and Facilities. — (a) No broadcaster or network
shall supply for commercial programs special technical facilities, in-
cluding outside pickups or wire lines, at less than the actual cost to
it of such special services or facilities unless a full written report is
filed immediately with the Code Autliority and in no event shall such
facilities be supplied below cost for the purpose of evading the pro-
visions of this Code.
3. Sales of Talent, Literajn/ and Musical Rights, Reoorclings, Etc. —
(a) No broadcaster or network shall sell or furnish for commercial
363
programs, talent, or special recordings, or literan^ or musical rights
of any sort, not provided for in the Rate Card at less than the actual
cost to the broadcaster or network of such talent or special record-
ings, or literary or musical rights unless a full written statement of
such sale below cost is filed immediately with the Code Authority,
and in no event shall such sale below cost be for the j^urpose of evad-
ing the provisions of this Code.
4. General Provisions. — (a) This Code shall apply to all con-
tracts made on or after the date on which this Code becomes effective
and after that date shall apply to all renewals or extensions made
of contracts made prior thereto unless there is vested in a party
other than the broadcaster or network a right to renew or extend
the then-existing contract.
(b) No broadcaster or network shall defame or disparage a
competitor, directly or indirectly, by words or acts which untruth-
fully call in question such competitor's business integrit}^ ability to
perform contracts, credit standing, or quality of service.
(c) No broadcaster or network shall claim for its service a
character, scope, or quality which cannot be substantiated, nor shall
it claim as regular characteristics of its service features which it
knows to be purely temporary or accidental.
(d) No broadcaster or network shall accept or knowingly permit
any performer, singer, musician, or orchestra leader regularly em-
ployed by such broadcaster or network to accept any mone}'', gift,
bonus, refund, rebate, royalty service, favor, or any other thing or
act of value from any music publisher, composer, author, copj^right
owner, or the agents or assignees of any such persons for performing
or having performed any musical or other composition for any
broadcaster or network when the purpose is to induce such persons
to sing, play, or perform, or to have sung, played, or performed any
such works.
(e) No broadcaster or network shall knowingly permit the broad-
casting of any advertisement of, or information concerning any lot-
tery, gift enterprise, or similar scheme, offering prizes dependent in
whole or in part upon lot or chance, or anv list of the prizes drawn
or awarded by means of such lottery, gift enterprise, or scheme,
whether said list contains any part or all of such prizes.
(f) Wliere a station or network is broadcasting a sustaining pro-
gram utilizing the services of any band or orchestra, it shall be
deemed an unfair practice under this Code to make any commercial
announcement advertising any commodity either before, during, or
after the program the effect of which is to create falsely the impres-
sion that the music is furnished or paid for by any persons or firm
other than the actual employer of such band or orchestra.
(g) It shall be considered an unfair trade practice under this
Code for any station or network to destroy fair competition among
bands or orchestras by causing booking offices, artist bureaus, or
agents to demand that any hotel, night club, restaurant, or similar
establishment employ any specific band or orchestra.
(h) It shall be considered an unfair trade practice under this Code
for any broadcaster to broadcast without being duly authorized by
the United States Government.
364
(i) No broadcaster or network shall use any subterfuge to frus-
trate the spirit and intent of this Code, and the violation of any
of the provisions of this Article VII of this Code shall be deemed
an unfair trade practice.
Article VIII — Modification
1. The President of the United States may, from time to time,
cancel or modify any order, approval, license, rule, or regulatioii
issued under Title I of the Act.
2. Nothing in this Code, however, shall be construed as authoriz-
ing or consenting to the imposition of any requirement which is in
conflict with the Radio Act of 1927, as amended, or the rules and
regulations promulgated thereunder.
Article IX — ^ISIongpolies, Etc.
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 — Effecti\'e Date
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 12D
Registry No. 1742-09
O
Approved Cede No. 130
CODE OF FAIR COMPETITION
FOR THE
PRECIOUS JEWELRY PRODUCING INDUSTRY
As Approved on November 27, 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 Precious Jewelry Producing Industry,
and hearings having been held thereon and the Administrator hav-
ing rendered his report containing an analysis of the said code of
fair competition together with his recommendations and findings
Avith 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, subject to the following
condition :
That the application of the provision of section 1, article III to
the manufacturers and distributors of jewelry for schools, colleges,
fraternities, and other educational institutions, insofar as such sec-
tion provides for the pajmient of time and one third for all hours
over 40 per week worked by employees to whom such provision ap-
plies, shall be stayed until ninety days after the effective date of
this code, at which time such provision shall become effective and
have the same force and effect as any other provision of the code.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
A dminis trator.
The White House,
Novemher 27, 1933.
(365)
23779° 244-9S 33
NOI-EMBEK 21, 1933.
The President,
The White House.
Sir: A Public Hearing on the Code of Fair Competition for the
Precious Jewelry Producing Industry, submitted by the Congress of
Precious Jewelry Producers, Inc., 608 Fifth Avenue, New York City,
was conducted in Washington on the 25th of September, 1933, in
accordance with the provisions of the National Industrial Recovery
Act. This association claims to represent eighty-five percent (85%)
of the Industry.
The maximum hours fixed under this Code are forty (40) with
special provisions for seasonal demands of one hundred forty-four
(144) hours extra spread over one year, however, no more than
lorty-eight (48) hours are to be worked by any employee in any one
week.
The minimum wage is forty cents (40^i) per hour. Provision is
made for learners to be paid eighty percent (80%) of the minimum
wage for a six weeks' learning period^ after which they are to be
raised to the minimum wage rate. Such learners shall at no time
exceed five percent (5%) of \}\^ total number of employees employed
by any one employer, except that every employer of less than twenty
people shall be entitled to one learner.
In 1929 there were 2,630 firms engaged in the manufacture of
Precious Jewelry, In 1933 this number had been reduced to 1,840.
This mortality of concerns will give a partial indication of the extent
to which this Industry has been affected by the economic depression.
Sales in this Industry in 1932, were only seventeen percent (1T%)
of the 1929 level. The production of previous jewelry requires a
large amount of invested capital. The character of work performed
in this Industry requires considerable skill and workmanship, result-
ing in high wage scales. This is purely a luxury industry and thus
has suffered considerably from the depression. The Jewelry In-
dustry is also very seasonal, as the products are largely?- gift mer-
chandise. The uncertainty of the market makes it extremely diffi-
cult in dull times to anticipate future needs for the purpose of
building up a standing stock.
The forty (40) hour maximum will act to absorb only a small
part of the unemployed workers. A further shortening of hours,
with the inevitable increased labor costs, is not recommended, how-
ever. An additional burden on the financial structure of the industry
would doubtless increase the large number of bankrupt concerns.
Lack of demand prevents the passing of any part of the cost on to
the consumer. The inclusion of importers, which are merchandising
establishments, within the jurisdiction of this Code renders a shorter
vrork week impractical.
The minimum wage rate will apply to only a small portion of the
workers as the requirements are for workers of a high degree of skill.
(3G6)
^67
FINDINGS
The Administrator finds that :
(a) The Code, as recommended, complies in all respects Tvith 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 Congress of Precious Jewelry Producers, Inc., the appli-
cant group herein, imposes no inequitable restrictions on admission
to membership and is truly representative of the Precious Jewelry
Producing 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.
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
solution for this Industry and its approval as herewith submitted is
recommended.
Respectfully,
Hugh S. Johnson,
'Administrator,
CODE OF FAIR COMPETITION
FOR THE
PRECIOUS JEWELRY PRODUCING INDUSTRY
Article I — ^Purposes
To effectuate the policies of Title I of tlie National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Precious Jewelry Producing Industry, and
upon approval by the President 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 " Precious Jewelry Producing Industry " as used
herein is defined to mean any manufacturer of platinum jewelry,
gold jewelry, and any importer, wholesaler or cutter of diamonds,
pearls and other precious or semiprecious stones or imitations
thereof, and such branches or subdivisions as may from time to
time be included under the provisions of this Code.
2. The term " gold jewelry " as used herein shall mean jewelry
of the fineness of ten karat (10 kt) or better.
3. 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 com-
pensation.
4. The term " employer '' as used herein includes any person or
persons by whom any such employee is compensated or employed.
5. The term " Manufacturer " shall mean any person who, within
or without his premises, engages in the manufacture, production, as-
sembly or in the setting and/or finishing of jewelry; and/or in the
cutting or polishing of stones.
6. The terms "Act " and "Administrator " as used herein shall mean
respectively the National Industrial Recovery Act and the Admin-
istrator of said Act.
Article III — Hours
1. No employee shall be permitted to work in excess of forty (40)
hours in any one week, except that during seasonal or peak de-
mands, employees, other than ofnce and clerical employees, may work
not to exceed one hundred and forty-four (144) hours per year in
excess of the maximum herein established, or forty-eight (48) hours
in any one week, or more than eight (8) hours in any one day; pro-
vided, however, that the maximum hours worked shall not exceed
forty (40) in any one week when averaged over a period of any three
consecutive calendar months; and provided further that time and
one third shall be paid for all hours in excess of forty (40) in any
one week.
(368)
369
(a) The maximum hours fixed in the foregoins section shall not
apply to any employee on emergency maintenance or emergency
repair work involving breakdowns or protection of life or property,
but in any such special case at least one and one third times the
normal rate shall be paid for all hours worked in excess of the
maximum herein established.
(b) The provisions for maximum hours herein established shall
not apply to employees engaged in a managerial or executive capacity
who now receive over thirty-five dollars ($35.00) per week, or to
outside salesmen.
2. Employers (including individuals, partners, and officers or stock-
holders of corporations) or individual manufacturers while working
as producers shall adhere to the working hours above prescribed.
Article IV — Wages
1. The minimum wage that shall be paid by any employer to any
employee shall be not less than forty (40) cents per hour, excepfc
learners, who shall have had no previous experience or employment
in this industry, shall be paid not less than eighty percent (80%)
of the minimum hourly rate, provided, however, that such learners
shall be limited to a six (6) weeks' learning period, after which learn-
ing period they shall receive at least the minimum wage, and pro-
vided further, that the number of learners employed by any one
employer in any one month shall not exceed five percent (5%) of the
total number of employees of such emploj'er, except that an employer
of less than twenty (20) employees shall be entitled to employ one
learner.
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. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
4. 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 employ-
ment may be reduced; and, unless since such date such adjustments
have been made, all tnembers 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.
GENERAL LABOR PROVISIONS
1. Emploj'^ers shall not employ or have in their employ any person
under the age of sixteen (16) years; nor anyone under eighteen (18)
years of age at operations or occupations hazardous in nature or
detrimental to health. The Code Authority shall submit to the
Administrator 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 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.
370
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 purpo^
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,
minimmn rates of pay, and other conditions of employment
approved or prescribed by the President.
5. No employee shall work, or be joermitted to work, for a total
number of hours in excess of the number of hours herein prescribed,
whether he be employed by one or more employers.
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.
7. EmjDloyers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
8. Each employer shall post and keep posted in conspicuous places
full copies of the hour and wage provisions of this Code.
9. If any employer in the Precious Jewelry Producing Industry
is also an employer of labor in any other industry the pro^dsions of
this Code shall apply to and affect only that part of the business
which is included m the Precious Jewelry Producing Industry.
Article V — Hg^ie Work
On and after the effective date of this Code home work in this
industry shall be prohibited.
ArticixE VI — Administration
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. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of six (6) members of the
Precious Jewelry Producing Industry and one (1) member of the
Medium and Low Priced Jewelry Producing Industry. The Ad-
ministrator, in his discretion, may appoint, to represent the Adminis-
tration, not more than three (3) additional members, without vote,
to serve for such period of time as he may designate.
(b) Each trade or industrial association directly or indirectly
participating in the selection of activities of the Code Authority
shall submit to the Administrator true copies of its articles of as-
sociation, by-laws, regulations, and any amendm_ents 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.
371
(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 Authorit3\
2. The Code Authority shall have the f oUowintT^ duties and powers
to the extent permitted by the Act, subject to the right of the Ad-
ministrator on re^dew to disapprove or modify any action taken by
the Code Authority.
(a) There shall be filed with the Cods Authority, at such times
and in such manner as may be prescribed, with the approval of the
Administrator, i^cords showing in detail the number of employees,
wage rates, employee earnings, hours of work, and such other data
or information as the Code Authority may from time to time require.
(b) Except as otherwise provided in the National Industrial
Recovery Act, all statistics, data., and information filed in accord-
ance with the pro^asions of subparagraphs (a) and (b) of this
Article shall be confidential, and the statistics, data, and information
of one employer shall not be revealed to any other employer except
that for the purpose of administering or enforcing the provisions of
this Code, the Code Authority by their duly authorized representa-
tives (who shall not be in the employ of any employer affected by
this Code) with the approval of the Administrator, shall have access
to any and all such statistics.
(c) Wlien complaint in writing is made to the Code Authority
that any of the provisions of this Code have been violated by any
employer, the Code Autliority shall promptly investigate the facts
and may cause such investigation to be made as may be deemed
necessary to determine the facts set forth therein, and if said com-
plaint is verified by such investigation, the Code Authority shall
issue an order to cease and desist from such violation, provided, that
upon the refusal of any member of this industry to comply with such
order of the Code Authority, the Code Authority shall call the same
to the attention of the Administrator and make such recommenda-
tions with reference thereto, as it may deem necessary to effectuate
the purposes of the Act.
(d) No inequitable restrictions on admission to membership in
the Congress of Precious Jewelry Producers, Inc., or any other
trade association or organized group, participating in the activities
of the Code Authority, shall be imposed, and any member of the
industry shall be eligible for mem.bership in any such trade associa-
tion or organized group upon compliance with the provisions of the
bylaws relating to membership, provided that any person applying
for such membership shall, in addition to the pajmient 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 cf
code development and administration as the Code Authority, sub-
372
ject to the Administrator's approval, shall prescribe as fair and
equitable.
3. Each member of the industry shall keep detailed records of all
purchases, imports, and sales made by him, cither as principal or
agent, the date thereof, and the names and addresses of the parties
from whom acquired or to whom sold and shall submit such records,
including consular invoices covering imports, to the Administrator
upon request.
4. In addition to the information required to be submitted to the
Cocle Authority, there shall be furnished to the Administrator such
statistical information as he may deem necessary for the purposes
recited in Section 3(a) of the Act.
Article VII — Standards
1. No article of merchandise shall be stamped, branded, marked,
or invoiced with any word, symbol, mark, or quality mark in viola-
tion of Federal or State stamping laws governing the stamping
and marking of articles made of platinum, gold, and other precious
metals, or in violation of any Conamerical Standard issued by the
United States Department of Commerce, nor shall any merchandise
be advertised in a manner which will violate State advertising laws
or of the rulings of the Federal Trade Commission.
2. No article of merchandise shall be marked or stamped with a
quality mark indicating gold or the fineness of gold unless the gold
content shall be ten karat (10 Kt.) fine or over.
3. The term " Solid Gold " shall be applied only to gold of twenty-
four karat (24 Kt.) fineness.
4. No article, including raw material and finished or unfinished
merchandise, purporting to be, or to be made of platinum, in whole
or in part, shall be bought or sold unless the transaction be covered
by an invoice accurately stating the quality of the metal.
5. When any quality mark, descriptive of the quality, purity,
fineness, quantity, weight, and/or percentage of the platinum, gold,
or other precious metal of which an article is made, is stamped or
branded on said article itself, there must also be stamped or branded
on said article: (1) the trade mark duly applied for or registered
under the laws of the United States of the manufacturer of such
article or (2) if the manufacturer has sold or contracted to sell such
article to a jobber, wholesaler, or retail dealer regularly engaged in
business, the trade mark duly registered or applied for under the
laws of the United States of such purchaser.
6. All pearls, precious and semi-precious stones (diamonds not in-
cluded), either sold loose or mounted, shall be designated on invoices
by the proper descriptive trade terms, such as "Australian Sap-
phire ", '^ Siam Kuby ", " Natural Pearl "', "Cultured Pearl ", etc.
7. Synthetic, reconstructed, doublet, or imitation stones, cultured
and imitation pearls, sold either loose or mounted, shall be designated
as such on all invoices, tags, or other descriptive medium.
ARTTCiiE VIII — Trade Practices
The following practices constitute unfair methods of competition
for members of the industry and are prohibited.
1. The false marking or branding of any prodnct of the industry
which has the tendency to mislead or deceive customers or prospec-
tive customers, whether as to the grade, quality, quantity, substance,
character, nature, origin, size, finish, or preparation of any product
of the industry, or otherwise.
2. 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 customers
or prospective customers.
3. The giving, delivering, loaning, consigning, or otherwise plac-
ing of any merchandise in the control or custody of any person,
either directly or indirectly, for the purpose of conducting a sale
(whether or not advertised) or for the purpose of placing the same
in any retailer's stock.
(a) The foregoing paragraph shall not prohibit: (1) the con-
signment of any single item, exceeding in value two thousand dollars
($2,000) to any retailer not conducting a price reduction sale; or
(2) the deliver}', upon m.emorandum, of merchandise for purpose of
selection for a period not exceeding fifteen (15) days from date of
the receipt of the merchandise, or upon specific call.
4. The sending or delivering of merchandise as samples, except
upon the condition that same shall be returned within fifteen (15)
days following receipt, except when a selection is sent for the pur-
pose of preparing a catalogue.
5. Accepting for credit, exchange, or for any other reason, articles
of jewelry, finished or unfinished, returned by a purchaser, unless
such article is defective, or is not in accordance with specifications or
approved sample ; this provision shall not apply to settlements made
with any insolvent or embarrassed debtor.
6. The copying of any original design produced by another manu-
facturer, or estimating upon or making up an article in imitation of
another's design, without the permission or consent of the owner of
such design.
(a) The memorandum on which such merchandise is delivered
shall bear the following : " The above itemized articles forwarded
herewith shall not be copied or duplicated, or altered or caused to be
copied, duplicated, or altered by anyone except the owner of said
merchandise."
7. Directly or indirectly to give or permit to be given, or ofTer to
give, mone}^ lavish entertainment, or anything of value to agents,
employees, 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 emploj'crs or prin-
cipals 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.
8. The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
374
credit standing, or by other false representations or hj the false
disparagement of the grade or quality of their goods.
9. The selling by an}' manufacturer of findings to jobbers or others,
who do not maintain facilities for assembling these findings, or who
do not send such findings to assemblers who come within the pro-
visions of this Code, so far as wages and hours are concerned.
10. The renting or loaning of bench space by any manufacturer
and/or other manufacturing facilities for the purpose of manufac-
turing jewelry, thus enabling the user to compete unfairly with man-
ufacturers who are obliged to maintain such facilities.
Article IX — Tekms
1. No merchandise shall be sold on terms longer than six (6)
months net average.
(a) Mountings and articles of jewelry which do not contain dia-
monds, precious stones, or pearls, shall not be sold on terms longer
than four (4) months net or season settlement January 1st or July 1st
net.
(b) Loose stones of a price of $3.00 per karat or less, or the equiva-
lent thereof, shall not be sold on terms more favorable than three
percent (3%) cash discount on or before the 15th of the following
month — four months net.
2. No datings shall be allowed, except that a fifteen (15) day tol-
erance is permitted for adjustment of payment to customary'- monthly
or seasonal disbursement dates.
8. Interest at the rate of six percent (6%) per annum shall
be charged from due date, unless otherwise provided by State laws.
4. No marcasites, chatons, or imitations of precious or semi*
precious stones of any kind or description, suitable for the manufac-
ture of jewelry or ornamentation of other material of any kind, shall
be sold on any terms more favorable to the purchaser than the
following :
(a) Three percent (3%) discount for payment within fifteen (15)
days from the end of the month in which merchandise is delivered,
subject to a tolerance of ten (10) days.
(b) No datings shall be allowed, except that merchandise sold
after the 25th of the month may be dated as of the first of the month
immediately following.
(c) Interest at the rate of six percent (6%) per annum, unless
otherwise provided by State laws, shall be charged on all accounts
unpaid within sixty (60) days from the end of the month in which
delivery of merchandise was made.
Article X — Moditicatign-
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 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
conditions imposed by him upon his approval thereof.
375
2. This Code, except as to provisions required by the Act, may be
modified or amended on the basis of experience or changes in cir-
cumstances, such modifications or amendments 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,
unless otherwise provided.
Article XI — Monopolies, etc.
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 XII — 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 in-
creases 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 XIII — Effective Date
This Code shall become effective on the 3rd day after its approval
by the President.
Article XIV — Supplementary Provisions
The following Divisions (Schedules A and B) are supplementary
to, and constitute part of, the Code of Fair Competition for the
Precious Jewelry Producing Industry. Such schedules apply to only
those particular Divisions as are indicated by the specific headings.
Any provision of the supplementary Codes that may be inconsistent
with the provisions of the Basic Code shall prevail.
Approved Code No. 130.
Registry No. 1215-06.
SCHEDULE A
Dmsiorr FOR THE Manx.tfactuf.ers and Distributors of Jewelry for Schools,
CorxEGEs, Fraternities, and Other EducIational, Institutions
1. Contracts. — (a) In order to meet the increased cost of gold, following the
Executive Order of the President of August 28, 1933, it is recognized that prices
in contracts for purchase of gold products which were made prior to said
Executive Order and are in full force and effect between members of this
Division and their customers, should be increased to such an extent as is
necessary to allow for the actual increased cost of gold in such products.
(b) No member of this Division shall induce or attempt to induce the breach
of a bona fide existing contract between a competitor and the customer of such
competitor during the term covered by such contract, or interfere with or
obstruct the performance of any duty or service provided by the tenns thereof.
(c) Where a fraternity controls the manufacture and distribution of its
insignia under contract, it is an unfair trade practice for unauthorized persons
to manufacture, solicit, or accept orders for such insignia.
2. Discounts. — (a) Discounts on all orders sold direct from any manufacturer
of this Division to retail stores, where no salesman works on such order, shall
be uniform as to purchasers of the same class, grade, quality, and/or quantity
and at such amount off of the list price filed with the Code Authority as may,
with the approval of the Administrator, be determined by such Code Authority.
(b) Discounts on all orders placed through local dealers by salesmen shall
be uniform as to purchasers of the same class, grade, quality, and/or quantity
and at such amount off of the list price filed with the Code Authority, as may,
with the approval of the Administrator, be determined by such Code Authority.
(c) Cash and trade discounts, other than provided for in sections (a) and
(b) of this Article, are hereby prohibited.
3. Deposits. — (a) Deposits on the purchase price of class emblems and fra-
ternity jewelry shall be required with the order, as follows :
(1) On each class emblem order, not less than one dollar ($1.00) deposit
where the retail selling price exceeds three dollars ($3.00) but is less than
ten dollars ($10.00).
(2) On each class emblem order not less than three dollars ($3.00) deposit
where the retail selling price exceeds ten dollars ($10.00).
Provided, however, that no deposit shall be forfeited except for arbitrary
cancellation or rejection of the order, or any part thereof.
(3) Not less than ten percent (10%), and in no case less than one dollar
($1.00) deposit on all regular orders for fraternity jewelry, and on special
orders for fraternity jewelry at least fifty percent (50%) of the purchase
price thereof.
4. Special charges and commissions. — (a) On all orders for high-school rings
and pins the actual cost of iX\e necessary dies shall be charged in accordance
with a schedule submitted by the Code Authority and approved by the Adminis-
trator.
(b) Commissions in any form allowed or paid to any salesman, representing
a member of this Division, shall be filed with the Code Authority in the sama
manner as provided for the filing of net current price lists and discount sheets,
and no salesman shall give to a purchaser any deduction from his commis-
sion as shown by the schedule thereof filed with the Code Authority.
5. Sales provisions. — (a) No member of this Division shall sell, exchange, or
offer for sale, any product of this Division at a price below his own individual
cost, as determined by an adequate cost-finding system, capable of uniform
application to the Industry, to be developed and set up by the Code Authprity,
subsequent to the effective date of this Code, and when approved by the
Administrator, shall be used by all members of this Division as the basis for
determining their individual cost.
6. Price lists. — (a) Each member of this Division shall, within five (5) days
after the effective date of this Code, file with the Code Authority, a schedule
(376)
377
of his net current price lists and discount slieets, on forms prescribed hy the
Cede Authority, and approved by the Adniiuistrator.
(b) Revised scliedules of price lists and discount sheets may be filed from
time to time thereafter \vith the Code Authority by any member of this Divi-
sion, to become effective upon the date specified by such member, which date
shall be not less than ten (10) dnys after the filing of such revised schedules
with the Code Authority.
(c) No member of this Division shall sell, exchange, or offer for sale any
product of this Division at a price less than set forth in the schedule of such
member on lile with the Code Authority.
(d) Members of this Division shall keep accurate records of their individual
costs, which records shall, upon request, with the approval of the Administrator,
be available to the Code Authority.
(e) No member of this Division shall submit a price list in which the price
of any particular article is less than the individual cost of such member, as
determined by the uniform cost accounting system provided for in Section 5 (a)
of this schedule, and siich submitted price list, representing the price of any
particular article below the individual cost of the member submitting the same,
as shown by his certified cost slieets, shall be held in abeyance by the Code
Authority, pending submission of a revised price list based on the individual
cost of each article to such member.
7. Trade Practices. — In addition to the Trade Practices set forth in the Basic
Code, the following constitute uuf;nr methods of competition for members of
this Division and are prohibited ;
(a) The giving of gratuities of every description, such as keys, placques,
cups, and any article of merchandise or anything of value, as v.-ell as all gratis
rings or pins, bribes, special discounts, or rebates.
(b) To guarantee a cash payment or installnient payments as an inducement
to sc-cure a contract.
(c) Advertising allowances, which have the effect of a concession in price,
provided that this provision shall not be so interpreted as to prohibit legitimate
advertising, or the purchase of a reasonable space in a school or college publi-
cation, based on approximately three percent (3%) of the business secured
by the member of the Division, as advertising, from such school or college.
(d) Where no standard or special design has been adopted by any school
or institution, and suggested designs are requested by such school or institu-
tion, that will require a special shank die, no member of this Division shall
submit a special sample of the design without first receiving a bona fide and
definite sigiied order.
(e) Making repairs or refinishing any products of the Industry without a
fair charge unless defective in material or manufacture.
8. Consignment. — (a) Nothing contained in the basic Code relative to the
prohibition of delivery of goods on consignment or memorandum shall apply to
members of this Division.
SCHEDULE B
Division fob Manufacturers op Fbaternal and Emblematio Jbwexet
Trade Practices. — In addition to the Trade Practices set forth in this Code,
the following constitute unfair methods of competition for the members of this
Division and are prohibited :
(a) To prepay any shipping charges on merchandise.
(b) To accept a note or notes in payment which do not bear interest at the
prevailing contract rate as provided by the law of the State in wliich said note
may be executed.
(378)
o
Approved Code No. 131
CODE OF FAIR COMPETITION
FOR THE
PIPE NIPPLE MANUFACTURING INDUSTRY
As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
Code of Fair Competition for the Pipe Nipple MANUFACTURiNa
Industry
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 Pipe Nipple Manufacturing Industry,
and hearings having been held thereon, and the Administrator hav-
ing rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have
been met :
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code of fair
competition be, and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
A dmin is tra tor.
The White House,
Novemher '27, 1933.
(379)
23780°— 244-99 33
November 16, 1938.
The President,
The White Bouse.
Sir : 1. This is a report on the Code of Fair Competition for the
Pipe Nipple Manufacturing Industry in the United States as revised
after the hearing conducted in Washington on September 26, 1933,
and reconvened on November 14, 1933, in accordance with the pro-
visions of the National Industrial Eecovery Act.
Provisions or the Code as to Hours, Wages, and General
Labor Provisions
Article III — Hours
2. This Article provides that no employee shall be permitted to
work in excess of thirty-five (35) hours in any seven (7) day period
or eight (8) hours in any twenty-four (24) hour period, beginning
at midnight, except that such hourly and daily limitations do not
apply to employees engaged in a managerial or executive capacity
who earn not less than thirty-five dollars ($35.00) per week, or to
travelling salesmen or to employees engaged in emergency mainte-
nance or emergency repair work. Further, an exception is made
providing that no person emploved in clerical or office work shall
be permitted to work in excess of forty (40) hours in any seven (7)
day period or nine (9) hours in any twenty-four (24) hour period.
Article IV — Wages
3. This Article establishes a minimum rate of pay at the rate of
forty ($0.40) cents per hour, except that persons employed in clerical
or office work shall be paid not less than fourteen dollars ($14.00)
per week. This Article also establishes a minimum rate of pay
irrespective of whether the employee is actually compensated on a
time-rate, piecework, or other basis. Further, female employees
performing substantially the same work as male employees shall
receive the same rate of pay as male employees.
This Article also provides for an equitable adjustment of all wages
in excess of the minimum. Further, this Article also provides that
the Code Authority shall present to the Administrator for approval
within thirty (30) days after the effective date of this Code and
after notice and hearing, recommendations as to upward adjustments
in wage rates for specified occupations by localities in order to
effectuate the purposes of the Act.
Overtime pay for all work in excess of the normal number of
hours per day or the normal number of hours per week, but not to
exceed six (6) hours in any seven (7) day period, except in cases
of emergency maintenance or emergency repair work involving
breakdowns or the protection of life or property, at the rate of one
and one half (11/2) times the normal rate of pay, is provided for all
employees with the exception of those employees who earn more
than thirty-five ($35.00) dollars per week.
(380)
381
Article V — General Labor Provisioxs
4. This Article provides that no person under sixteen (16) years
of age shall be employed in the industry and no person under the
age of eighteen (18) years shall be emploj-ed in operations or occupa-
tions which are hazardous in nature or dangerous to health, and
that the Code Authority must submit to the Administrator within
sixty (60) days after the effective date of this Code a list of such
operations or occupations.
This Article embodies subparagraph (a) of Section 7 of Title I
of the National Industrial Recovery Act.
This Article further provides that employers shall not reclassify
employees or duties of occupations performed or engage in any other
subterfuge for the purpose of defeating the purposes or provisions
of the Act or of this Code.
This Article further provides that every employer shall provide for
the safety and health of his employees at the place and during the
hours of their employment.
This Article further provides that all employers shall post com-
plete copies of this Code in conspicuous places accessible to employees.
ECONOMIC EFFECT OF THE CODE
5. The members of this industry manufacture pipe nipples for
heating, ventilating, plumbing, and other equipment made from
wrought steel (including copper-bearing steel), genuine wrought
iron, brass, and copper pipe. These products are largely consumed
in the construction, alteration, and repair of buildings and similar
structures.
In view of the fact that data regarding man-hour production
and wages existing in this industry in the past are rather meager,
it is difficult to forecast the economic effect of this code. However,
the minimum rate of pay of forty ($0.40) cents per hour established
by this code should materially increase the purchasing power of the
employees of this industry.
FINDINGS
The Administrator finds that :
(a) The code as recommended complies in all respects with the
mandatory 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
Pipe Nipple 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 adopted.
Respectfully,
Hugh S. Johnson,
A dministratOT.
CODE OF FAIR COMPETITION
FOR THE
PIPE NIPPLE MANUFACTURING INDUSTRY
Article I — Purposes
To effect the policies of Title I of the National Industrial Recovery
Act, this Code is submitted as a Code of Fair Competition for the
Pipe Nipple Manufacturing Industry, and upon approval by the
President, its provisions shall be the standards of fair competition
for such industry and shall be binding upon every member thereof.
ARTICL.E II — Definitions
Section 1. The term " Pipe Nipple Manufacturing Industry " or
" Industry " as used herein means the manufacturing (for sale) of
pipe nipples.
Sec. 2. The term " pipe nipple " or " product " as used herein
means and includes a mechanical fitting used in connection with
heating, ventilating, plumbing, and other equipment made from
wrought steel (including copper bearing steel), genuine wrought
iron, brass and copper pipe of various diameters up to and including
twelve (12) inches and of various lengths up to and including
twenty-four (24) inches in length and threaded on both ends or
otherwise threaded or cut to the specifications of the purchaser.
Sec. 3. The term " member of the industry " includes, but without
limitation any individual, partnership, association, corporation, or
other form of enterprise engaged in the industry, either as an
employer or on his or its own behalf.
Sec. 4. The term " employee " as used herein includes any and
all persons engaged in the industry, however compensated, except
a member of the industry.
Sec. 5. The term " trade " as used herein means all channels of
distribution for the products of this industry.
Sec. 6. The term "Association " as used herein means " The Na-
tional Association of Pipe Nipple Manufacturers, Inc."
Sec. 7. The term " Board of Directors " as used herein means the
Board of Directors of the Association.
Sec. 8. The terms "Act " and "Administrator " as used herein
mean, respectively, Title I of the National Industrial Recovery
Act, and the Administrator for Industrial Recovery.
Sec. 9. Population for the purposes of this Code shall be deter-
mined by reference to the latest Federal Census.
Article III — Hours
Section 1. Maximum hours. — No employee shall be permitted to
work in excess of thirty-five (35) hours in any one week (seven (7)
(382)
383
days period) or eight (8) hours in any twenty-four (24) hour period,
beginning at midnight, except as herein otherwise provided. A
normal work day (twenty-four (24) hour period) shall not exceed
eight (8) hours, and a normal work week (seven (7) day period)
shall not exceed thirty-five (35) hours.
Sec. 2. Hours for CleHcal and Ofjice Employees. — No person em-
ployed in clerical or office work shall be permitted to work in excess
of forty (40) hours in any one week (seven (7) day period) or nine
(9) hours in any twenty-four (24) hour period. A normal work
day (twenty-four (24) hour period) shall not exceed nine (9) hours,
and a normal work week (seven (7) day period) shall not exceed
forty (40) hours.
Sec. 3. ExceptioTis as to Hours. — The provisions of this Article
shall not apply to travelling salesmen, or to persons employed in a
managerial or executive capacity wdio earn not less than thirty-fivo
dollars ($35.00) per week, or to employees engaged in emergency
maintenance or emergency repair work, provided, however, that the
provisions respecting a normal work day and a normal work week,
as provided in Section 1 of this Article, shall apply to all employees
in emergency maintenance or emergency repair work.
Sec. 4. Employment hy Several Employers. — No employer shall
knowingly permit any employee to work for any time which when
totaled with that already performed with another employer, or em-
ployers, in this industry exceeds the maximum permitted herein.
Article IV — Wages
Section 1. Minimum Wage. — No employee shall be paid in any pay
period less than at the rat€ of forty cents ($0.40) per hour, except
as herein otherwise provided.
Sec. 2. Minimum Wage for Clerical and Office Employees. — No
person employed in clerical or office work shall be paid in any pay
period less than at the rate of fourteen dollars ($14.00) per week.
Sec. 3. Piecework Compensation — Minimum Wages. — This Article
establishes a minimum rate of pay which shall apply irrespective of
whether an employee is actually compensated on a time-rate, piece-
work, or other basis.
Sec. 4. Mimmum Wage Rates for Specified Occupations. — Within
thirty (30) days after the approval of this Code, the Code Authority
shall present for approval to the Administrator, after notice and
hearing, recommendations as to upward adjustments in wages for
specified occupations by localities, in order to effectuate the purposes
of the Act.
Sec. 5. Wages Above Mini?num. — Employers shall not reduce the
rates of wages for employees whose rates are now in excess of the
minimum rate of wages herein provided (notwithstanding that the
number of hours worked in such employment may be hereby de-
creased), and where in any case an employer has not increased the
rates of wages for such employees prior to the effective date of this
Code by an equitable readjustment of all such wage rates, such em-
ployer shall readjust all such wage rates. This provision shall be
interpreted in the same manner that paragraph 7 of the President's
Reemployment Agreement has been interpreted by the Administrator
in Interpretations Nos. 1 and 20.
384
Sec. 6. Female Employees.— Femnle employees performing sub-
stantially the same work as male employees shall receive the same
rate of pay as male emploj^ees. .
Sec. 7. Handicapped Persons.— A person whose earning capacity
is limited because of age or physical or mental handicap may be
employed on light work at a wage below the minimum established
by this 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 hours as
shall be stated in the certificate. Each employer shall file with the
Code Authority a list of all such persons employed by him.
Sec. 8. Evasion Through Reemployment.— ^o employee now em-
ployed at a rate in excess of the minimum shall be discharged and
reemployed at a lower rate for the purpose of evading the provisions
of this Code. ,, ^, i
Sec 9. Overtinve.—KW employees who work more than the normal
number of hours per day in any twenty-four (24) hours, or more
than the normal number of hours per week m any seven (7) days
provided in this Code, shall be paid not less than one and one half
(li/o) times their normal rate of pay for said excess. Such overtime
shafl not exceed six (6) hours in any one week, except in cases of
emergency maintenance or emergency repair work involving break-
do wifs or protection of life or property, provided that all such cases
of emergency Avork shall be reported to the Code Authority.
Article V — General Labor Provisions
Section 1. Child Labor Provimon.—^o person under sixteen (16)
years of age shall be employed in the industry. No person under
eighteen (18) years of age shall be employed at operations or occu-
pSions which are hazardous in nature or dangerous to health. The
Code Authority shall submit to the Administrator within sixty (60)
days after the effective date of this Code a list of such operations or
occupations. In any State an employer shall be deemed to have com-
plied with this provision as to age if he shall have on file a certificate
or permit duly issued by the Agency in such State empowered to
issue employment or age certificates or permits showing that the
employee is of the required age.
Sec. 2. Provisions from the .4c^.— In compliance with Section
7 (a) of the Act, it is provided:
(a) That employees shall have the right to organize and bargain
lauur, ur iiitiir aj^eiiLt?, m mc \,n:;i3i^iici;i.i«-'±i w-1- ouv-ii i3presenLaii . ~-
or in self -organization or in other concerted activities for the pur-
pose 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, 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.
385
Sec. 3. Reclassif cation of Employees.— ^o employer shall re-
classify employees or duties of occupations performed for the pur-
pose of defeating the provisions of the Act or of this Code.
Sec. 4. Standards for Safety and Health.— Evevy employer shall
provide for the safety and health of his employees at the place and
during the hours of their employment. Standards for safety and
health shall be submitted by the Code Authority to the Admin-
istrator within six (6) months after the effective date of this Code.
Sec. 5. State Laws. — No provisions in this Code shall supersede
any State or Federal law which imposes more stringent requirements
on employers as to age of employees, wages, hours of work, or as to
safety, health, sanitary, or general working conditions, or insurance,
or fire protection, than are imposed by this Code.
Sec. 6. Posting. — All employers shall post complete copies of this
Code in conspicuous places accessible to employees.
Article VI — Organization, Powers and Duties or the Code
Authority
Section 1. Organization and Constitution. — A Code Authority is
hereby constituted to cooperate with the Administrator in the ad-
ministration of this Code.
Sec. 2. The Code Authority shall consist of seven (7) members
of the industry to be selected as follows :
Members of the industry shall elect the industry members of the
Code Authority by a majority vote of the members of the industry,
provided, however, that five (5) of such members of the Code
Authority shall be members of the Association and two (2) of such
members of the Code Authority shall be elected from nonmembers of
the Association, if any, eligible to such representation as provided in
Section 8 of this Article.
Sec. 3. The Association is hereby designated as the agency to con-
duct an election of the members of the Code Authority within twenty
(20) days after the effective date of this Code, and any other elections
of members of the Code Authority which may thereafter be held.
Members of the Code Authority shall be elected to serve for a term
of one (1) year or until their successors are elected at the next annual
meeting of the industry. In the event of any vacancy in the mem-
bership of the Code Authority, a special meeting oi the members
of the industry for an election to fill the incomplete terms of such
members shall be called. Notice of time and place of each election
shall be sent by registered mail to all members of the industry at
least ten days in advance of such election, and voting at such election
may be by person, by proxy, or by letter ballot. Each member of the
industry shall have one (1) vote.
Sec. 4. In addition to membership as above provided, there may
be three (3) members, without vote, to be appointed by the Adminis-
trator, to serve for terms of from six months to one year, so arranged
that the terms do not expire at the same time.
Sec. 5. The representatives who may be appointed by the Adminis-
trator, together with the Administrator, shall be given notice of and
may sit at all meetings of the Code Authority.
Sec. 6. Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority shall
S86
(1) impose no inequitable restriction on membership, and (2) submit
to the Administrator true copies of its articles of associations, 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.
Sec. 7. 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 prescribe 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. 8. 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 sustain-
ing their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall ■ be
determined by the Code Authority, subject to review by the Admin-
istrator, on the basis of volume of business and/or such other factors
as may be deemed equitable.
Sec. 9. Nothing contained in this Code shall constitute the mem-
bers of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent, or employee of the
Code Authority. Nor shall any member of the Code Authority,
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own willful misfeasance or nonfeasance.
Sec. 10. — Powers and duties. — The Code Authority shall have the
following further powers and duties, the exercise of which shall be
reported to the Administrator and shall be subject to his right, on
review, to disapprove or modify any action taken by the Code
Authority.
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the industry with the provisions of
the Act.
(b) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To obtain from members of the industry such information
and reports as are required for the administration of the Code and to
provide for submission by members of such information and reports
as the Administrator ma}'- deem necessary for the purposes recited
in Section 3 (a) of the Act, which information and reports shall be
submitted by members to such administrative and/or government
agencies as the Administrator may designate ; provided that nothing
in this Code shall relieve any member of the industry of any existing
obligations to furnish reports to any government agency. No indi-
vidual reports shall be disclosed to any other member of the indus-
try or any other party except to such governmental agencies as may
be directed by the Administrator.
387
(d) To use such trade associations and other agencies as it deems
proper for the carrj'ing out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity 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.
(e) To make recommendations to the Administrator for the coor-
dination of the administration of this Code with such other codes,
if any, as may be related to the industry.
(f^ To secure fi'om members of the industry an equitable and pro-
portionate payment of the reasonable expenses of maintaining the
Code Authority and its activities.
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those members of the industry who
have assented to, and are complying with, this Code.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.
Article VII — Publicitt of Prices, Terms, and Conditions or Sale
Section 1. "Within ten ^10) days after the effective date of this
Code each member of the industry shall publish his list prices and
maximum discounts applying thereto, terms, and conditions of sale
on all products of his trade, each class of trade being furnished with
list prices and maximum discounts applying thereto, terms, and con-
ditions of sale affecting each such class of trade to which such list
prices and maximum discounts appljdng thereto, terms, and condi-
tions of sale apply. Coincident with such publication, each member
of the industry shall file with the Code Authority and the Code Au-
thority shall immediately distribute to all members of the industry,
a complete schedule of such list prices and maximum discounts
applying thereto, terms, and conditions of sale.
Sec. 2. In the event of any change by any member of the industry
in any list price and maximum discounts applying thereto, terms, or
conditions of sale, he shall file full and complete copies of every
such change with the Code Authority within such periods as may
have been designated by the Code Authority but not exceeding five
days in advance of the effective date of any such change. Copies
thereof shall be immediately distributed bv the Code Authority to
the members of the industry. On the effective date of any such
change, the industry member shall publish the same to the trade
concerned and coincidentally file such information with the Code
Authority for immediate distribution by the Code Authority to the
members of the industry.
Sec. 3. No member of the industry shall sell, pay a rebate, or allow
a deduction at any time to any person except in accordance with his
list prices and maximum discounts applying thereto, terms, and
conditions of sale then in effect and published in the manner de-
scribed herein. Each member of the industry shall have the right,
individually, to publish new list prices and maximum discounts
388
applying thereto, terms, and conditions of sale, from time to time as
herein provided.
Sec, 4. No member of the Industry shall protect a purchaser on
prior prices or discount lists after new prices or discount lists shall
have been effective, unless such purchaser shall have first entered
into a binding contract for a determinable quantity of the products
of the industry, or for a specified and identified project. Copies of
all original contracts for specific and identified projects and of all
orders unfilled for more than thirty (30) days after entering into of
any contract for immediate delivery, shall be at once filed with the
Code Authority. Such contracts and orders shall be kept confiden-
tial by the Code Authority.
Article VIII — Trade Practice Rules
General Dejinition. — For all purposes of the Code the acts described
in this Article shall constitute unfair practices. Any member of the
industry who shall directly or indirectly, through any officer, em-
ployee, agent, or representative, knowingly use, employ, or permit
to be employed any of such unfair practices shall be guilty of a
violation of the Code.
Rule 1. Inaccurate Advertising . — No member of the industry shall
use or publish advertising (whether printed, radio, display, or of any
other nature) or other representation which is inaccurate in any
material particular or in any way misrepresent any commodity (in-
cluding its use, trade mark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material content, or preparation)
or credit terms, values, policies, services, or the nature or form of the
business conducted.
Rvle %. " Bait " Advertising. — No member of the industry shall use
advertising or selling methods or credit terms which have the capac-
ity or tendency to deceive or mislead the customer or prospective
customer.
Rule 3. False Billing. — No member of the industry shall withhold
from or insert in any quotation or invoice any statement that makes
it inaccurate in any material particular.
Rule 4. Inaccurate Labelling. — No member of the industry shall
brand or mark or pack any commodity in any manner which tends
to deceive or mislead purchasers with respect to the brand, grade,
quality, quantity, origin, size, material content, or preparation of
such commodity.
Rule 5. Inaccurate References to Competitors., etc. — No member
of the industry shall use advertising or other representation which
refers inaccurately in any material particular to any competitors or
their commodities, prices, values, credit terms, policies, or services.
Rule 6. Selling Below Cost. — No member of the industry shall
sell below his cost except to meet the quoted price of lower cost
producers.
Pursuant to the provisions of Article VI, the Code Authority shall
formulate or cause to be formulated standard methods or systems of
cost accounting for use in this industry, which m.ethods or systems
shall be adaptable to the cost accounting procedure of and to the
business of this industry. Such methods or systems shall specify the
389
factors that shall determine the cost for each member of the inrlnstry
pursuant to the provisions of this section. Upon approval of such
methods or systems by the Administrator, the Code Authority shall
furnish to each member of the industry' complete details of such
methods or systems. Thei-eafter, in determining its costs, each mem-
ber of the industry shall use a cost accounting sytsem which shall be
at least as complete and detailed as the cost accounting method or
system recommended by the Code Authority and approved by the
Administrator.
Rule 7. Threats of Lawsuits. — No member of the industry shall
publish or circularize unjustified or unwarranted threats of legal
proceedings which tend to or have the effect of harassing competitors
or intimidating their customers.
Rule 8. Secret or Dwcriminatory Rebates. — No member of the
industry shall offer or make any secret or discriminatory payment or
allowance of a rebate, refund, commission, credit, unearned dis-
count, or excess allowance, whether in the form of money or other-
wise, nor shall a member extend to any customer any secret or dis-
criminatory service or privilege not extended to all customers of the
same class.
Rule 9. Selling on Consignment. — No member of the industry shall
ship goods on consignment, except under circumstances to be defined
by the Code Authority subject to review and disapproval by the
Administrator.
Rule 10. Offering Rewards or Gratuities to Employees. — No mem-
ber of the industry shall give, permit to be given, or offer to give
anything of value for the purpose of influencing or rewarding the
action oi any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee or the princi-
pal of such agent; provided, however j that nothing herein shall pro-
hibit the free and general distribution of articles used solely for
advertising.
Rule 11. Interference with Another^s Contracts. — No member of
the industry shall induce or attempt to induce the breach of an
existing contract between a competitor and his employee or customer
or source of supply; nor shall any such member interfere with or
obstruct the performance of such contractual duties or services.
Rule 12. Repudiating One''s Own C&ntracts. — No member of the
industry shall repudiate a contract entered into in good faith when
the purpose of such repudiation is to create for such member an
unfair price advantage.
Rule 13. Coercio-n. — No member of the industry shall require that
the purchase or lease of any commodity be a prerequisite to the pur-
chase or lease of any other commodity.
Rule 14. No member of the industry shall sell or offer to sell any
product of the industry by any false means or device which has the
tendency and capacity to mislead or deceive customers or prospective
customers as to quantity, quality, substance, or size of such product
and the tendency to injuriously affect the business of competitors.
Rule 15. No member of the industry shall sell pipe nipples made
from imperfect, rejected, or reclaimed pipe unless all containers in
which such pipe nipples are sold are clearly marked indicating the
390
grade of such pipe, and if any pi])e nipples of such pipe are sold
otherwise than in containers, each pipe nipple of such grade of pipe
shall be clearly marked indicating the grade of such pipe.
All quotations, invoices, and other communications in respect to
pipe nipples of such grade of pipe shall clearly state the grade of
such pipe.
This provision shall not apply to pipe nipples of such grades of
pipe made prior to the effective date of this Code, but each member
of the industry shall furnish the Code Authority within thirty (30)
days after the effective date of this Code a complete report of all
such pipe nipples on hand as of the date of such report.
Rule 16. No member of the Industry shall represent any product
of the industry as complying with the commercial standards for
pipe nipples promulgated from time to time by the Bureau of Stand-
ards of the United States Department of Commerce, unless such
pipe nipples are manufactured in accordance with such standards.
Article IX — Registration or Members of the Industry
Each member of the industry shall within thirty (30) days of the
effective date of this Code register with the Code Authority. All
members of the industry who may engage in the industry thereafter
shall likewise register with the Code Authority. Registration of a
member of the industry shall include the full name and mailing
address of the member. The time limit for the registration by any
member of the industry may be extended whenever, in the opinion
of the administrator, the time limit as provided herein might cause
an injustice to any member of the industry.
Article X — Modification
1. 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
President to cancel or modifiy 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 XI — MoxoroLiEs
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.
391
Article XII — Price Increases
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual cost should
be delayed. But when made, such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.
Article XIII — Effective Date
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 131.
Registry No. 112&-02.
o
Approved Code I*lo. 132
CODE OF FAIR COMPETITION
FOR THB
MALLEABLE IRON INDUSTRY
As Approved on November 27, 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 Malleable Iron 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 mth 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 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 27, 1933.
23781* 244-100 33 (393)
November 14, 1933.
The President, *
. The White House.
Sir: This is a report upon the Code of Fair Competition proposed
by the Malleable Iron Industry, and on the hearing conducted thereon
in Washington, D.C., on October 2, 1933, in accordance with the pro-
visions of the National Industrial Recovery Act.
PROVISIONS OF THE CODE AS TO WAGES AND HOURS
The Code provides for a 40-hour week, applicable to all employees,
including clerical and office employees, with certain exceptions care-
fully limited both as to hours and numbers by the Code.
Child labor is prohibited and employment of persons less than 18
years of age in hazardous occupations.
Minimum rates of pay are 35^ and 40^ per hour in the North and
30^ and 32 Kj!^ per hour in the South.
Equitable adjustment of all pay schedules above the minimum is
provided, and the same minimum rates for piece work as for work
upon an hourly basis.
Processes involved in production in this industry cannot always be
completed within eight hours and may require an additional half or
full hour in a working day. For a large part of this time the workers
are not actively engaged because they must wait for furnace opera-
tions to develop. Therefore, while the industry recognizes the prin-
ciple of the eight-hour day and has so stated in the Code proposed, it
appears that an absolute requirement of eight hours would work an
undue hardship.
ECONOMIC EFFECT OF THE CODE
The Malleable Iron Industry includes all manufactures of malleable
iron castings, whether for consumption by the producer, for transfer,
or for sale. The industry is cyclical and unstable, its operations
having dropped from 87% of capacity in earl^ 1929 to 8% of capacity
in August 1932. The present rate of capacity is 35%.
The Code is presented by the Malleable Founders' Society, which
represents about 95% of the industry, with a total invested capital of
about $105,000,000 and an estimated annual payroll in a normal
year of approximately $55,000,000.
Pertinent figures with respect to workers, hours, and wages, as pre-
sented by the industry, are as follows:
(394)
395
Number of
persons em-
ployed by
companies
assenting to
to the Code
Minimum
wages paid
common
labor per
hour
(cents)
Average
wages paid
per hour of all
companies
covering all
plant em-
ployees
(cents)
Mar. 1926 (peak month)
July 1926
Nov. 1926 (low month) .
Mar. 1929 (peak month)
July 1929
Dec. 1929 (low month)..
Jan. 1933_
Mar. 1933...
July 1933
Aug. 1933-.
Sept. 1933...
33, 453
26, 610
22, <!C9
42, 957
36,114
22, 809
14, 110
13, 800
22,200
22,320
24, 105
56.4
56.1
57.0
55.1
54.9
53.9
38.2
38.2
37.0
37.5
40.5
Mar. 1926 (peak month)
July 1926 ...
Nov. 1926 (low month).
Mar. 1929 (peak month)
July 1929.
Dec. 1929 (low month)..
Jan. 1933
Mar. 1933.
July 1933
Aug. 1933
Sept. 1933
Average
work week
per wage
worker
(hours)
Approximate
weekly pay roll
of all companies
assenting to
the Code
$943, 375
701, 626
585, 054
1, 207, 136
1.011,154
602, 408
156,311
147, 605
295,704
309, 690
390, 501
Average
rate of op-
erations in
the indus-
try (percent
of capacity)
68.9
52.9
45.9
87.7
73.5
47.3
14.9
11.4
30. 3
36.8
•34.0
Estimated.
These figures show an increase in employment since March 1933,
of 10,305 workers, or approximately 80%; an increase in the average
week of 12 hours, which is approximately 43%; and an increase in the
aggregate weekly pay roll from $147,605 to $390,501, or about 160%,.
While this latter increase is largely due to the increased number of
workmen and the increased work week, it is estimated that under
operation under the Code as submitted, there will be an additional
increase in employment of approximately 3,400 and a further increase
in the aggregate weekly pay roll of about $70,000. The rate of opera-
tion in the industry has not changed materially since June 1933, and
therefore, it may reasonably be assumed that operation under the
Code, baseci on the above comparison, will show an increase in em-
ployment in this industry as an effect of the National Recovery Act
of approximately 5,300 persons, or 24%, and an increase in the
weekly pay roll of $164,797, or 55%, and in the annual pay roll of
appro.ximately $8,000,000. A return to operation at 56% of capacity,
it is estimated will put back to work all who were employed in 1929.
The Board of Directors of the Society is constituted the Code
Authority, and it is provided that three members, without vote, may
in addition be appointed by the Administrator, to serve with the
Board.
The Deputy 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-
396
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
^Malleable Iron Industry; and that
(c) The Code as recommended is not designed to promote monop-
lies or to eliminate or oppress small enterprises and wall not operate to
discriminate against them, and will tend to effectuate the pohcy of
Title I of the National Industrial Recovery Act.
I beheve that the Code as proposed is fair to Industry, to Labor,
and to the Consumer, and in accordance wdth the intent and purpose
of the National Industrial Recovery Act.
Accordingly, I hereby recommend the approval of this proposed
Code of Fair Competition for the Malleable Iron Industry.
Respectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
MALLEABLE IRON INDUSTRY
Article I — Purpose
Section 1. The Code is adopted pursuant to Title I of the National
Industrial Recovery Act.
Sec. 2. The purpose of the Code is to effectuate the poUcy of
Title I of the National Industrial Recovery Act insofar as it is
applicable to the Industry.
Article II — Definitions
Wherever used in this Code or in any schedule appertaining hereto
the terms hereinafter in this Article defined shall, unless the context
shall otherwise clearly indicate, have the respective meanings herein-
after in this Article set forth.
Section 1. The term "the United States " means and includes all of
the territory of the United States of America on the North American
continent.
Sec. 2. The term "the President" means the President of the
Unites States of America.
Sec. 3. The term "the 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. 4. The term "the Industry" means and includes the business
of producing, in the United States, malleable-iron castings regardless
of whether such castings are sold or used for the purposes of the pro-
ducer, or used for the purposes of an affiliate, subsidiary, or parent
company of the producer.
Sec. 5. The term "member of the Industry" means and includes,
but without limitation, any person, firm, association, corporation, or
other entity operating a plant or plants in the United States for the
production of malleable-iron castings.
Sec. 6. The term "the Code" means and includes this Code and
all schedules annexed hereto as originally approved by the President
and amendments hereof made as hereinafter in Article IX provided.
Sec. 7. The term "Society" means the Malleable Founders'
Society.
Sec. 8. The term "Board of Directors" means the Board of
Directors of the Society.
Sec. 9. The term "member of the Society" means any member of
the Industry who has assented to the Code by signing and delivering
to the Secretary a letter substantially in the form set forth in Schedule
A. Nothing in such Schedule A shall be construed to restrict the
right of any member of the Industry to express his adherence to or
participation in the Code in any other appropriate manner.
Sec. 10. The term "the effective date of the Code" means the
tenth day after the date on which the Code shall have been approved
by the President pursuant to the National Industrial Recovery Act
(397)
398
Article III — Hours of Labor, Rates or 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:
(a) 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-organ-
ization or in other concerted activities for the purposes of collective
bargaining or other mutual aid or protection;
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing; and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
Sec. 2 (a) No member of the Industry shall cause or permit any
employee, including clerical and office employees, to work more than
forty (40) hours per week, subject to the following exceptions:
(1) In peak periods of production factory employees may be em-
ployed not to exceed forty-eight (48) hours per week for a period of
not more than four (4) weeks in any six (6) months and not more than
six (6) days in any one week.
(2) Melters and firemen, the number of whom employed by any
member of the Industry shall not exceed 3% of the total number
of its employees, may be employed not more than 10% longer hours
than other factory employees.
(3) Rep air- work employees, to the extent required by an emer-
gency, may be employed not more than 10% longer hours than
other factory employees.
(4) Watchmen may be employed not more than fifty-six (56) hours
per week.
(5) All executives employed in directing or supervisory capacities
and in technical work, and members of their respective staffs,
individually receiving pay at the rate of $35.00 or more per week.
(6) Outside Salesmen.
(b) Whenever sufficient employees quahfied for any type of work
are not available to any member of the Industry m a particular
locality, such hours of labor may, with the approval of the Board of
Directors and the Administrator, be increased to the extent required
by such member of the Industry to perform such work.
(c) After the date of the employment by any member of the
Industry of any employee, such member shall not knowingly permit
such employee who shall also have performed work for one or more
other employers, to work for such member such number of hours as
would result in a violation of the Code had all such work been per-
formed for such member.
Sec. 3. No member of the Industry shall employ in the Industry
any person under sixteen (16) years of age, and no one under eighteen
(18) years of age shaU be employed in hazardous work.
Sec. 4. It is recognized that geographical wage differentials have
existed in the Industry. For the purpose of providing for geographical
399
wage differentials, the United States is divided into two districts.
District No. 1 comprises all that part of the United States except the
states of Tennessee, Mississippi, North Carolina, South CaroHna,
Georgia, Alabama, and Florida. District No. 2 comprises all of the
above-named states.
Sec. 5. (a) The minimum rate of pay per hour which shall be paid
by members of the Industry for male plant labor (not including watch-
men, learners, minors between 16 and 18 years of age, superannuated
and maimed employees) in its employ in the Industry in District
No. 1 shall not be less than 40i per hour, and in District No. 2 shall
not be less than 32%^ per hour.
(b) The minimum rate of pay per hour which shall be paid by mem-
bers of the Industry for watchmen, learners, minors between 16 and
18 j^ears of age, superannuated and maimed employees shall not be
less than 80% of the minimum rate of pay as hereinbefore specified in
paragraph (a) of this Section.
(c) The minimum rate of pay per hour which shall be paid by mem-
bers of the Industry for female labor in District No. 1 shall not be
less than 35^ per hour, and in District No. 2 not less than 30^ per hour.
Where women perform in all respects the same kind and amount of
work as men, they shall receive the same wages.
(d) The number of learners, superannuated, and maimed employees
employed by any member of the Industry shall not exceed 5% of
the total number of its emplo3^ees. Learners shall not be employed
as such for a period in excess of 90 daj^s irrespective of whether they
are employed by one or more employers.
(e) Equitable adjustment in all pay schedules of employees above
the minimums herein prescribed shall be made on or before the effec-
tive date of the Code by employers who have not theretofore made such
adjustments and the first monthly reports of wages required to be
filed under the Code shall contain all wage increases made since June
16, 1933.
(f) In the case of employees performing work for which they are
paid for piecework performed, the minimum rate of pay which each
member of the Industry shall pay for such work shall produce the
minimum rates of pay per hour provided in paragraphs (a), (b), and
(c) of this Section.
(g) On and after the effective date of the Code, the minimum wage
which shall be paid by any employer to clerical and office employees
shall be at the rate of fifteen dollars ($15.00) per week; provided,
however, that office boys or girls may be paid not less than eighty (80)
percent of such minimum wage. The number of office boys and girls
emploj^ed by any member of the Industry shall not exceed five (5)
percent of the total number of its employees.
Sec. 6. Within each state members of the 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 the Code.
Sec. 7. The Industry recognizes the desirability of the eight (8)
hour working day for labor and insofar as it reasonably can will
endeavor to employ its labor on that basis.
Sec. 8. AH employers shall post complete copies of this Code in
conspicuous places accessible to employees.
400
Article IV. — Administration of the Code
Section 1. The administration of the Code shall be under the
direction of the Board of Directors.
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 Board of Directors shall pay to the Board of
Directors his proportionate share of the expense incurred in the
preparation and/or administration of this Code. The Board of
Directors shall from time to time make such assessments upon account
of such expenses against members of the Industry as it shall deem
proper and shall apportion such assessments upon the basis of the
average annual shipments in net tons of each member of the Industry,
including all malleable castings produced by any member of the
Industry for its own use or that of any affiliated, parent or subsidiary
company, for the three preceding calendar years. Such assessments
Bhall be payable as such Board shall specify. In the event any
member of the Industry shaU not have been in operation during all
of the three preceding calendar years such assessments shall be based
on such period as the member was in operation.
Sec. 3. The Board of Directors may, from time to time, appoint
such committees as it shall deem necessary or proper, in order to
effectuate the purpose of the Code, and it may delegate to any such
committee generally, or in particular instances, such of the powers
and duties of the Board of Directors under the Code as such Board
shall deem necessary or proper in order to effectuate such purpose.
Any member of any such committee may be a member of the Board
of Directors or an officer, director, or representative of a member of
the Society.
Sec. 4. There shall be no inequitable restrictions imposed on mem-
bership in the Society or its successor, and the Society shall 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, organization, and
activities as the Administrator may deem necessary to effectuate the
purposes of the Act.
Sec. 5. The Administrator may appoint not to exceed three mem-
bers, without vote, to serve with the Board of Directors 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 appointments
shall be so arranged that they do not expire at the same time.
Article V — Selling Below Cost
Subject to the approval of the Administrator, the Board of Direc-
tors shall prescribe a cost-accounting system which conforms to the
principles of and is at least as detailed and complete as the uniform
and standard method of cost finding set forth in the Manual of
Accounting issued by the Society, with such modifications therein
as may be promulgated from time to time by the Board. The Board
of Directors shall in accordance with such cost-accounting system
and with the approval of the Administrator determine periodically
fair and reasonable costs of production in the Industry for different
types of malleable iron castings.
401
Each member of the Industry shall install and use such cost-
accounting system as prescribed and, subject to the approval of the
Administrator, shall be furnished by the Board of Director.-- with
the periodical tabulations of costs and cost differentials arrived at in
accordance with such cost-accounting procedure. Any member of
the Industry who shaU fail to install and use the cost-accounting
system so prescribed or who shall sell malleable iron castings below
the fair and reasonable costs of production as shown by the aforesaid
tabulations shall be guilty of a violation of the Code.
Article VI — Unfair Practices
For aU purposes of the Code, the acts described in Schedule B
annexed hereto shall constitute unfair practices. Such unfair prac-
tices shall be deemed to be unfair methods of competition in com-
merce within the meaning of the Federal Trade Commission act as
amended, and the using or employing of any of them shall be deemed
to be a violation of the Code and any member of the Industry who
shall directly or indirectly, through any officer, employee, agent, or
representative, use or employ any of such unfair practices, shall be
guilty of a violation of the Code.
Article VII — Reports and Statistics
Section 1. The Board of Directors shall have power to require
each member of the Industry to furnish to the Secretary of the So-
ciety such information concerning the production, shipment, sales,
and past sale prices of such member, and the hours of labor, rates of
pay, and other conditions of employment at the plant or plants of
such member, and such other information as the Board of Directors
shall deem necessary or proper in order to effectuate the purpose of
the poUcy of Title I of the National Industrial Recovery Act, and to
enable the Board of Directors to determine costs of production as set
forth in Article V. The Board of Directors may require that any
such information be furnished periodically at such times as it shall
specify and may require that any or all information furnished be
sworn to or otherwise verified or authenticated, as it shall prescribe.
Failure of any member of the Industry promptly to furnish to the
Secretary of the Society information required by the Board of Direc-
tors and substantially in the form prescribed by it, shall constitute a
violation of the Code. The Board of Directors shall not have power
to require any information regarding trade secrets or the names of
the customers of any member of the Industry.
Sec. 2. Any or all information furnished to the Secretary of the
Society by any member of the Industry shall be subject to checking
for the purpose of verification by an examination of the pertinent
books and accounts and records of such member by any disinterested
person or persons mutually agreed upon by the Board of Directors
and the member of the Industry whose books and accounts and records
are to be examined or by a person or persons nominated by the Board
of Directors and approved by the Administrator. The cost of such
examination shall be treated as an expense of administering the code;
provided, however, that if upon such examination any such infor-
mation shall be shown to have been incorrect in any material respect,
402
such costs shall be paid by the member of the industry which fur-
nished such information.
Sec. 3. To the extent that such information is of a confidential
character and that the publication thereof is not essential in order to
effectuate the policy of Title I of the National Industrial Recovery
Act, such information shall be treated as strictly confidential and no
publication thereof shall be made in any other manner than in com-
bination with similar information furnished by other members of
the Industry, in which case the pubUcation shall be made only in such
manner as will avoid the disclosing separately of such confidential
information.
Sec. 4. In addition to the 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
necessary for the purposes recited in Section 3 (a) of the National
Industrial Recovery Act.
Article VIII — General Provisions
Section 1. Any notice, demand, or request required or permitted
to be given to or made upon any member of the Industry shall be
sufficiently given if mailed, postage prepaid, addressed to such member
at the address of such member on file with the Secretary of the
Society; provided, however, that any member of the Industry may
waive, in writing, the making or giving of any such notice, demand,
or request.
Sec. 2. Except as otherwise specifically provided herein the pro-
visions of the Code shaU apply to and be binding upon every member
of the Industry, whether or not such member shall be a member of
the Society. No member of the Industry which shall not also be a
member of the Society shall be entitled to vote at any meeting of
members of the Society or to any other right, power, or privilege
provided in the Code for the members of the Society.
Sec. 3. The Board of Directors shall have the power to interpret
the provisions of the Code, provided that nothing herein shall be con-
strued to limit the rights of any member of the Industry or other per-
son or entity to appeal to the Administrator to modify or rescind any
interpretation of the Board of Directors.
Sec. 4. The Code and 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, li-
cense, 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 the Code or any conditions imposed by him
upon his approval thereof.
Sec. 5. Any action taken by the Board of Directors or other group
within the Industry relative to the administration of this Code except
where otherwise specifically provided in this Code may, in the dis-
cretion of the Board of Directors or such other group, be submitted
to the Administrator for review and shall in any case be subject to tha
disapproval of the Administrator.
403
Article IX — Amendments
Such of the provisions of the Code as are not required to be included
therein by the National Industrial Recovery Act may be amended at
any time in the manner in this Article pro\dded. The amendments
shall be proposed by the Board of Directors by vote of the majority
of the members thereof at the time in office, which amendments shall
be submitted to a duly called meeting of the members of the Society.
If at such meeting, two thirds of the voting power of the Society,
without regard to number present, shall vote in favor of the adoption
of such amendment, such amendment shall be submitted by the Board
of Directors to the President for approval if approval thereof by him
shall be then required by law. Every such amendment shall take
effect as part of the Code upon the adoption thereof by the members
of the Society as above provided and the approval thereof by the
President if approval by him shall be required as aforesaid. Any
member of the Industry may recommend amendments of the Code to
the Board of Directors or to the Administrator.
Upon termination of the Code all obligations and liabilities under
the Code shall cease except those for unpaid assessments theretofore
made in accordance with the provisions of the Code.
Approved Code No. 132.
Registry No. 1106-02.
SCHEDULE A — Form of Letter of Assent to Codb
, 193.
Robert E. Bolt, Secretary,
Alalleable Founders' Society,
Union Trust Building, Cleveland, Ohio.
Dear Sir: The undersigned, desiring to participate under the Code of Fair
Competition in the Malleable Iron Industry, hereby assents to all of the provi-
sions 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
Recovery Administration. Effective on the date on which the Code is approved
by the President of the United States 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 the Code and hereby agrees with every other person, firm, and
corporation who shall then be or thereafter become a participant under said Code,
that the Code shall constitute a valid and binding contract between the under-
signed and aU such other participants.
For all purposes of the Code, the address of the undersigned, until written
notification of change shall be filed with the Malleable Founders' Society, shall
be as set forth at the foot of this letter.
Very truly yours,
(Name of official) (Title
("404)
SCHEDULE B
Unfair Trade Practices
For all purposes of the Code, the following described acts shall constitute
unfair practices:
1. Selling castings other than F.O.B. the plant of the member of the Industry;
provided, however, that railroad freight, or trucking charges may be allowed to
destination, at the option of the seller, and provided further that no allowance
exceeding the prevailing carrying charges may be made where the buyer electa
to call at the plant of the member for castings.
2. Allowing terms of payment more favorable to the purchaser than net thirty
(30) days from date of shipment or beyond the last day of the month following
shipment, or granting any cash discount greater than one half of one percent for
payment made within ten (10) days from date of shipment.
3. Making piece prices based on stated weights without a revision of the price
on any variation between the stated weight and the actual weight.
4. Making, altering, or repairing pattern equipment (when repairs are not
due to negligence of the member of the Industry) except at the expense of the
customer; provided, however, that if patterns in existence at the effective date
of the Code are owned by members of the Industry and such members of the
Industrj' furnish castings from such patterns without an adequate pattern charge,
other members of the Industry may have the right to also furnish such patterns
at their own cost, and provided further that if castings are made by a member
of the Industry for the general trade, as distinguished from a specific customer,
the patterns from which such castings are furnished may be made by such member
at his own expense.
5. Making or promising to any purchaser or prospective purchaser of malleable
iron castings which reqiiire special finishing, straightening, machining or other
operations not commonly included in the manufacture of a commercial casting
without making a charge for the cost of the dies, jigs, tools, or other special
equipment used in such operations; provided, however, that i said special equip-
ment in existence at the effective date of the Code is owned by members of the
Industry and such members of the Industry furnish castings from such special
equipment without an adequate charge, other members of the Industry may have
the right to also furnish such special equipment at their own cost.
6. Extending to purchasers without charge special privileges, concessions, or
services not extending to all buyers under like terms and conditions, or rendering
any free service of machining, painting, galvanizing, or tinning.
7. Making or promising 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, gratuity, gift, or other payment or
remuneration, directly or indirectly, for the purpose of influencing a sale.
8. Procuring any information concerning the business of such member which is
properly regarded by it as a trade secret or confidential within its organization,
other than information relating to a violation of any provision of the Code with
the intent of injuring a competitor.
9. Imitating or simulating any design, style, mark, or brand used by any other
member of the Industry with the intent of injuring a competitor.
10. Paying or allowing to a purchaser in connection with the sale of any product
a secret or discriminatory rebate, commission, credit, discount, adjustment, or
other secret or discriminatory concession.
11. Canceling, in whole or in part, any contract for the sale of a product except
for a fair consideration, or effecting an adjustment of the claim of any purchaser
in such a manner as to result in a secret or discriminatory allowance or concession.
12. Disseminating, publishing, or circulating any false or misleading informa-
tion relative to any product or price for any product of any member of the Industry
or the credit standing or ability of any member thereof to perform any work or
manufacture or produce any product, or to the conditions of employment among
the employees of any member thereof.
13. Inducing or attempting to induce by any means any party to a contract
with a member of the Industry to violate such contract.
(405)
406
14. Making or giving to any purchaser of any product any guaranty or pro-
tection in any form against decline in the market price of such product.
15. Stating in the invoice of any product as the date thereof a date later than
the date of shipment of such product, or including in any invoice any product
shipped on a date earlier than the date of such invoice.
16. Purchasing from customers goods and/or services at prices higher than the
market for such goods and/or services, for the purpose of influencing or inducing
the purchase of malleable castings.
17. Selling machined castings without charging for the cost of machining such
castings.
18. Voluntarily making any payment or allowing any credit or back charges
for machine work, labor charges, or other expense incurred by the purchaser on
castings rejected as defective.
19. The giving of quantity discounts without obligation on the part of the
buyer to take deUvery of the quantities specified on the contract.
20. Any misrepresentation in connection with the sale or advertisement for
Bale and/or marking of any malleable castings with the intent or effect of mis-
leading or deceiving purchasers or prospective purchasers regarding their quality,
composition, or service features.
o
Approved Code No. 133
CODE OF FAIR COMPETITION
FOR THE
CONCRETE MASONRY INDUSTRY
As Approved on November 27, 1933
BT
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 Concrete Masonry 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 section 3 of the said act have
been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and recommendations and adopt
the findings of the Administrator and do order that the said code
of fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval Recommended ;
Hugh S. Johnson,
A dmin istrator.
The White House,
Novemler27,1933.
(407)
23782"" 244-101 33
No\'EMBER 13, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Concrete Masonry Industry in the United States, a public hearing on
which was conducted in Washington on October 5, 1933, in accord-
ance with the provisions of the National Industrial Kecovery Act.
PR0\1SI0NS OF THIS CODE AS TO WAGES AND HOURS
This code provides for a maximum work week of forty hours, ex-
cept that during fifteen weeks of the year, forty-eight hours per
week may be worked, although the maximum daily limit permissible
in any event is eight hours.
Managerial or administrative employees earning more than $35.00
per week are not subject to these hourly limitations. Further excep-
tions are provided for employees engaged in emergency work, who
may work forty-eight hours per week averaged over any fifteen-week
period; watchmen, who may work sixty-four hours per week; and
shipping clerks, who may work fifty-two hours per week. Not more
than six days may be worked in any seven-day period.
This code provides a minimum hourly rate of forty cents per hour,
except that in specified Southern States a minimum rate of thirty
cents per hour is provided, whether the compensation is based on a
time rate, piecework, or other basis. Accounting, clerical, office,
service or sales employees are to be paid at not less than $15.00 per
week. Managerial or administratiA^e employees may be paid not less
than $35.00 per week.
For all time worked in excess of eight hours per day or forty hours
per week, employees are to be paid at one and one third the regular
hourly rate. Provision is made for maintaining existing wage dif-
ferentials. No person under eighteen years of age may be employed
in the Industry. Maximum continuity of employment is to be pro-
vided insofar as practicable,
ECONOMIC EFFECTS OF THE CODE
As indicated by data furnished by the Industry, the production
and sale of concrete masonry units increased rapidly from 1921 to
1928, at which time there were about 5,000 plants in the business, rep-
resenting invested capital of one hundred million dollars, employing
50,000 plant workers and producing 387 million units per year. Being
largely dependent on the erection of new buildings, and on industrial
and public works developments, this Industry experienced a serious
decline following the year 1928. In 1932 the number of establish-
ments had decreased 30%, employees 84%, capital invested 25%, and
production 85%.
(408)
409
From all available information, the average hourly wage in 1929
was about fifty-five cents per hour, Avhile in 1932 the average was
thirty-nine cents per hour, representing a decrease in the average
hourly rates of about 30%. Since the labor provisions of this code
establish a minimum rate of forty cents per hour in the North and
thirty cents per hour in the South, it is evident that the average
hourly wage will be materially raised as soon as the code becomes
effective.
It is further evident that the provisions in the code with respect
to maximum hours and conditions of employment, conformity to
fair trade practices, and conditions of sale, will serve to stabilize
the Industry and reflect benefits to the Industry and employees alike.
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
Concrete Masonry 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.
Eespectfully,
Hugh S. Johnson,
A dministraton
CODE OF FAIR COMPETITION
FOR THE
CONCRETE MASONRY 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 Concrete Masonry 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
Section 1. Industry. — The term " Industry " as used herein in-
cludes the manufacture, and sale by those who manufacture, of
block, brick, or tile building units made of Portland Cement Con-
crete, primarily for structural use.
Sec. 2. Employee. — The term " employee " as used herein includes
anyone engaged in the industry in any capacity receiving compensa-
tion for his services, irrespective of the nature or method of his
compensation.
Sec. 3. Employer. — The term " employer " as used herein includes
any individual, partnership, association, corporation, or other person
or enterprise by whom any such employee is compensated or
employed.
Sec. 4. Member of the Indttsti^. — The term " member of the in-
dustry " as used herein includes any one engaged in the industry as
above defined, either as an employer or on his own behalf.
Sec. 6. President ., Act arid Administrator. — The terms " Presi-
dent ", " Act ", and " Administrator " as used herein shall mean
respectively the President of the United States^ the National Indus-
trial Recover}^ Act, and the Administrator of Title I of said Act.
Article III — Hours
Section 1. Hours of Labor. — No employee shall be permitted to
work more than 40 hours per week. Due to the seasonal nature of
this Industry an employee may be permitted to work 48 hours per
week but not more than 8 hours per day for a period of not to exceed
15 weeks during any one calendar year.
Sec. 2. Exceptions. — The maximum hours prescribed in Section 1
of this Article shall not apply to the following :
(a) Managerial or administrative employees earning more than
$35.00 per week.
(b) Employees engaged in emergency work occasioned by break-
downs in production machinery or in work requiring the protection
of life or property, provided no such employee shall be permitted to
(410)
411
work in excess of forty-eiglit (48) hours per week averaged over any
fifteen (15) weeks' period.
(c) AYatchmen, provided no such employees shall be permitted
to work in excess of sixty-four (64) hours in any one week.
(d) Shipping clerks, provided no such employees shall be per-
mitted to work in excess of fifty-two (52) hours in any one week.
Sec. 3. Einployers. — Employers who personally perform manual
work or are engaged in mechanical operations shall be subject to
the same maximum hours provided in this section as to employees.
Sec. 4. Dual Employ merit. — No employer shall engage any em-
ployee for any time, which when totaled with that already performed
with another employer, or employers, exceeds the maximum per-
mitted herein.
Sec. 5. Agreetnents. — Nothing herein shall be construed to apply
to employees whose hours of labor, wages or working conditions
are established for specific projects by competent governmental
authoritj'- acting in accordance with law or with hours of work,
wages, or terms of employment which are established by labor agree-
ments or understandings now in force, where such hours are less or
wages are more or both than those set forth hereinabove.
Sec. 6. Day of Rest. — No employee shall be permitted to work
more than six (6) days in any seven (7) day period.
Article IV^Wages
Sectiox 1. Rates of pay. — (a) No factory or mechanical worker
or artisan shall be paid at less than the rate of forty (40) cents
per hour, except that in region number 4 as defined in Article VI
of this Code, the minimum shall be thirty (30) cents per hour.
(b) No accounting, clerical, office, service, or sales employee, or
any other employee not included in subsection (a) or (c) of this
section shall be paid at less than the rate of $15 per week.
(c) No managerial or administrative employee shall be paid at
less than the rate of $35.00 per week.
Sec. 2. Overtime., Piece Work., etc. — (a) Any employee working
in excess of eight (8) hours in anj' twenty-four (24) hour period or
in excess of 40 hours in any 7-day period shall be paid not less than
one and one third (IVs) times his regular hourly rate, for all such
excess time.
(b) This Article establishes a minimum rate of pay for the actual
time worked regardless of whether an employee is compensated on a
time-rate, piecework, or other basis.
(c) The amounts by which hourly wages in the higher paid
classes of employees exceeded hourly Avages in the lower paid classes
of employees on June 16, 1933, shall be maintained.
(d) All hourly wages shall be paid at least twice a month and all
salaries at least once a month, in lawful currency or by negotiable
check therefor payable on demand.
Articee V — Labor Provisions
Section 1. Child Labor. — No person under eighteen (18) years of
age shall be employed in the industry. In any State an employer
412
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. 2. Statutory Provisions. — (a) Employees shall have the right
to organize and bargain collectively through representatives of their
own choosing, and shall be free from the interference, restraint, or
coercion of employers of labor, or their agents, in the designation of
such representatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual aid
or protection;
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his
own choosing; and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
Sec. 3. State Laws. — ^Within each State no provision of this Code
shall supersede any law of such State which imposes more stringent
requirements on employers regulating the age of employees, wages,
hours of work, or safety, health, sanitary, or general working condi-
tions, or insurance, or fire protection than are imposed by this Code.
Sec. 4. Redasdjication.—Em^loyQY?, shall not reclassify employees
or duties of occupations performed by employees so as to defeat the
purposes of the Act or of this Code.
Sec. 5. Accide^it Prevention.— E^ch. employer shall provide for the
welfare and safety of his employees. He shall not be relieved from
complying with all national, state, and local ordinances and provi-
sions of safety measures referring to safety and health measures and
the welfare of employees insofar as the same may apply to his
special type of work and from protecting his employees by workmens'
compensation insurance.
Sec. 6. Puhlicity.— Each employer shall post in conspicuous places
at each job and at ofiices the provisions relating to labor conditions,
minimum wages, and maximum hours under this Code.
Sec. 7. Continuity of Lahor.—Kn employer shall so administer
work in his charge as to provide the maximum practicable continuity
of employment for his work force.
Article VI — Administration
Section 1. Regions. — To facilitate administration, the industry
shall be divided into five regions, as follows :
(1) Maine, Vermont, New Hampshire, New York, Massachusetts,
Connecticut, Khode Island.
(2) Pennsylvania, Maryland, New Jersey, Delaware, District of
Columbia, West Virginia.
(3) Indiana, Michigan, Wisconsin, Kansas, Illinois, Minnesota,
Iowa, Ohio, Missouri, North Dakota. South Dakota, Nebraska.
(4) Texas, Oklahoma, Arkansas, Louisiana, Kentucky, Tennessee,
Mississippi, Virginia, North Carolina, South Carohna, Georgia,
Alabama, Florida.
413
(5) Arizona, California, Colorado, Idaho, Montana, Nevada,
Wj'oming, New Mexico, Oregon, Utah, Washington.
Sec. 2.' Code Aut horl (y.—The Code Authority as hereinafter
defined and constituted may divide each region into regional sub-
divisions hereinafter termed subregions to further facilitate the
administration of this Code.
Sec. 3. Administration. — Further to facilitate administration, the
industry may be divided into sections according to productive
capacity as follows :
(a) Plants with a productive capacity of less than 250,000 units
annuall}'.
(b) Plants with a productive capacity of more than 250,000 units
annually but less than 500,000 units annually.
(c) Plants with a productive capacity of more than 500,000 units
annually.
Productive capacity is defined to be actual production of equivalent
of 8 X 8 X 16-inch units.
For the purposes of the first election of the Code Authority, as
hereinafter provided for, the determining productive capacity shall
be the productive capacity in the year 1929, and the members of this
Code Authority so elected shall serve for the duration of the Act.
For the purpose of subsequent annual elections, in the event that the
duration of the Act is extended by Congress beyond its present
expiration date, the productive capacity shall be the productive
capacity for the year immediately preceding the election. If a
plant was not in operation for the full year of 1929, its determining
productive capacity shall be its first full year of operation.
Sec. 4. Code Authority.— A Code Authority is hereby designated
to cooperate with the Administrator as a planning and fair practice
agency for the industry. Each trade association representing a
group (as defined in Section 6 of this article) shall so modify its
constitution and by-laws as to provide for the election of a Board
of Directors of eight members, one member to be selected from each
gi'oup, in accordance with the regional and productive capacity
schedules of Sections 1 and 3 of this article, or by some other fair
method of election approved by the Administrator.
The Code Authority shall be composed of eight members. These
members shall be designated by the respective boards of directors
above mentioned from among the membership of such respective
boards. The proportion of representation by each trade association
on the Code Authority shall be based upon the relative production
of the membership of these associations.
In addition to said representatives of the industry, three or less
members may be appointed to said Code Authority by the Adminis-
trator, and shall serve for terms of six (6) months to one (1) year
as designated in the order of appointment. The representatives so
appointed by the Administrator shall be without vote, shall serve
without expense to the industry, and shall be given notice of and may
sit at all meetings of the Code Authority. Similar notice shall also
be given to the Administrator.
Sec. 5. Regional and Suhrcgional Committees. — Members of the
industry in each region may establish regional committees by means
414
of some fair sj'stem of election, subject to the approval of the Code
Authority and the Administrator.
If the Code Authority in pursuance of Section 2 of this Article
shall divide any region into subregions, each such subregion may
establish a subregional committee by means of some fair system
of election, subject to the approval of the Code Authority and the
Administrator.
Sec. 6. Group Committees. — Wlienever members of the industry
representing two thirds of the production of concrete masonry units
in which the aggregate is composed chiefly of one material shall
petition the Code Authority to constitute the members of the indus-
try using such aggregate a division of the industry (such division
being based upon common interests and common problems), the
Code Authority, subject to the approval of the Administrator, shall
designate such members a division of the industry and thereupon the
group so designated shall elect a Group Committee from its member-
ship by some fair method of election, subject to the approval of the
Code Authority and the Administrator.
Sec. 7. Divisioiis. — If, prior to the signing of this Code by the
President, members of the industry shall have submitted proof to the
Administrator that they represent two thirds of the production of
industry products in which the aggregate is composed chiefly of one
material, and shall petition the Administrator to constitute the mem-
bers of the industry using such aggregate a division of the industry,
the Administrator shall desigTiate such members a di^dsion of the
industry, with p.ll of the functions of a group as outlinecl in this
Article. Under this section the Cinder Unit Group is hereby
constituted a division of the industry.
_ Sec. 8. Duties of Associations. — Each trade or industrial associa-
tion directly or indirectly participating in the selection or activities
of the Code Authority or of any regional or subregional administra-
tive committee shall:
(1) Impose no inequitable restriction on membership, and (2)
submit to the Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made t' ?reto, to-
gether yvdth such other information as to membership, organization,
and activities, as the Administrator may deem necessary to effectuate
the purposes of the Act.
Sec. 9. Code Authority Representative. — 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 provi-
sions of the Act, may require an appropriate modification in the
method of selection of the Code Authority.
Sec. 10. Powers and Duties of Code Authority and Committees. —
In addition to the powers herein specifically conferred, the Code
Authority shall have the following powers and duties to the extent
perniitted by the Act, subject to the right of the Administrator on
review to disapprove or modify any action taken by any agencies
pursuant to this Code.
415
(a) Duties of Code Aidhority.— The C^de Authority shall be the
general planning, coordinating, and administering agency for the
industry. The Code Authority may present to the Administrator
recommendations based upon conditions in the industry as they may
develop from time to time, which recommendations will tend to effec-
tuate the operation of this Code and the policies of the Act. Such
recommendations, upon approval by the President, shall become op-
erative as a part of this Code. The Code Authority shall cooperate
with the Administrator in making investigations as to the function-
ing and observance of any provisions of this Code and shall report
the results of such investigations to the Administrator. The Code
Authority shall draft a safety and health manual for the industry.
The Code Authority may use such trade associations and other agen-
cies as it deems proper for the carrying out of any of its activities
providecl for herein and to pay such trade associations and agencies
the cost thereof, provided that nothing herein shall relieve the Code
Authority 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.
(b) Duties of Comviittees — (1) Regional and Subregional Com-
mittees.— The duties of such committees shall be to administer the
provisions of this Code within the regions or parts thereof. Pro-
vided, however, that their actions shall be subject to approval of the
Code Authority and to review by the Administrator.
(2) Group Comviittees. — The duties of such committees shall be
to administer the provisions of this Code within their respective
groups irrespective of the regional or subregional committees. Pro-
vided, however, that their action shall be subject to the approval of
the Code Authority and to review by the Administrator.
(3) Wliere conflicts arise between decisions of group committees
and regional or subregional committees such conflicts shall be settled
by the Code Authority, subject to review by the Administrator.
Sec. 11. Voting — (a) Code Authority. — Each member of the Code
Authority may vote in meeting assembled or by letter ballot. If a
meeting is called notice shall be sent out not less than ten (10) days
before the date of meeting. A majority of the voting members of
the Code Authority shall constitute a quorum at any assembled
meeting. Each member of the Code Authority, excepting members
appointed by the Administrator, shall be entitled to one vote. A
majority of the votes cast shall constitute a sanctioning vote.
(b) By Committees. — Kules governing the voting by the Code
Authority shall govern the voting by committees, except that five
(5) days' notice shall be adequate for a meeting of subregional
committees.
(c) By members of the Industry. — On national questions voting by
members of the industry shall be by letter ballot. A sanctioning
vote shall be a majority of the votes cast.
(d) Within Regions or Groups. — A meeting of members of the
industry within a region or group may be called at the instance of
the Code Authority or at the instance of members of the industry
representing 25 percent of the plants, or at the instance of members
of the industry representing 25 percent of the production, within
the region or group respectively. Each member of the industry
416
within a region or group shall have one vote and a sanctioning vote
shall be a majority of those voting. Such sanctioning vote shall
bind the regional committee of such region, or the group committee
of such gi'oup, except that the action authorized or required by such
vote shall be subject to the approval of the Code Authority and the
Administrator; and except further, that any action taken on which
there is a disagreement by members of the industry (whether or not
they have participated in the voting), representing either 25 percent
of the number of producers, or 25 percent of the production within
such region or group shall be reviewed by the Code Authority.
(e) Within Subregio'tis. — A meeting of members of the industry
within any subregion of any region may be called by the Code
Authority or by members of the industry representing either 25
percent of the producers, or 25 percent of the production, within such
subregion. The regulations governing the voting by regions shall
apply to voting wnthin a subregion of any region, except that dis-
agreements shall be reviewed by the regional committee subject to
the right of any party to secure a further review by the Code
Authority.
(f) Notices of Meeting. — Whenever a meeting is called for a
region, group, or subregion, reasonable notice of said meeting shall
be given to all members of the industry within that region, group,
or subregion at least seven days (7) prior to the date of such
meeting.
Sec. 12. Arbitration. — Complaints between groups within the in-
dustry or controversies involving labor, consuming interests, or
parties outside of the industry shall, by and with the consent of both
parties concerned, be submitted to the Code Authority. Or at the
instance of any such consenting party, such complaints may be
referred to an arbitration board composed of equal representation of
each of the parties involved in the complaint or controversy with a
neutral arbitrator selected by the appointed members of such
arbitration board.
Sec. 13. Statistics. — In order that the President may be informed
as to the extent of the observance of the provisions of this Act and
of the extent to which the declared policy of the Act is being effec-
tuated in the industry as herein defined, the Code Authority shall
make such reports as the Administrator ma}'^ require. Each mem-
ber of the industry shall make such sworn reports to the Code
Authority as to wages, hours of labor, number of employees, pro-
duction, stocks on hand, sales, and such other matters as the Code
Authority, subject to review by the Administrator, may require for
the administration of this Code.
In addition to the information required to be submitted to the Code
Authority, there shall be furnished to governmental agencies such
statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.
Sec. 14. Assessmejit. — ^IVIembers 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 admin-
istration. The reasonable share of the expenses of administration
417
shall be determined bj' the Code Authority, subject to review by the
Administrator, on the basis of volume of businet-.s and/or such other
factors as may be deemed equitable to be taken i:ito consideration.
Such reasonable share of the expense incidental to administering
this Code shall be paid to such person or agency s.s the Code Author-
ity shall designate.
Sec. 15. Lialility. — Nothing contained in this Code shall consti-
tute the members of the Code Authority partners for any purpose.
Nor shall any member of the Code Authority be lis-.ble in any manner
to anyone for any act of any other member, officer, agent, or em-
ployee of the Code Authority. Nor shall any mt mber of the Code
Authority be liable to anyone for any action or omission to act under
the Code, except for his own willful misfeasance or nonfeasance.
Sec. 10. Handling of Violations.— T\\q Code Authority shall have
the power to receive complaints of violations of this code, make
investigations thereof, provide hearings thereon and adjust such
complaints, and bring to the attention of the Administrator for
prosecution recommendations and information relative to unadjusted
violations.
Article VII— Trade Practices
Section 1. Unfair Methods. — The following practices constitute
unfair methods of competition for members of the industry and are
prohibited.
(a) Secret Relates. — To make a secret prepayment of transporta-
tion charges or permit the payment or allowance of secret rebates,
refunds, credits, or unearned discounts, whether in the form of
money or otherwise, or to give secret premiums for the purpose of
influencing a sale, or secretly extend to certain purchasers special
services or privileges not extended to all purchasers of industry
products under like terms and conditions.
(b) Interference in Existing Contracts (Breach). — To willfully
interfere by any means or device whatsoever, in any existing con-
tract or order between a seller and a purchaser in or concerning the
production, manufacture, transportation, purchase, or sale of any
industry product, or the performance of any contractual duty or
service connected therewith, destroying or appropriating in whole or
in part the patronage, property, or business of another member of
the industry.
(c) Defamation of competitor.— To define a competitor by
words or acts, falsely imputing to him dishonorable conduct, inabil-
ity to perform contracts, or questionable credit standing, or by the
false disparagement of the grade or quality of his products.
(d) Price Misrepresentaiion.—To represent deliberately, either
directly or by inference, that a competitor is quoting lower prices
than those actually quoted by such competitor, without first estab-
lishing the accuracy of such representation.
(e) Conformity with Specifications.— To sell or offer for sale any
product of the industry with intent to deceive customers or
prospective customers as to the quality, quantity, size, grade,^ or
substance of such product. All products shall meet the specifica-
tions of the American Concrete Institute or American Society for
Testing Materials for concrete masonry units.
418
(f ) Delivery of Grade Superior to that Ordered. — To sell an in-
ferior quality of industry product at a fair price, with the under-
standing that a superior quality selling at a higher price will be
delivered.
(g) Shipping According to Samples. — To ship or deliver any in-
dustry product which does not reasonably conform to the standard
or specification of sample submitted as representative of the Ma-
terial to be shipped, or to representations made prior to securing an
order therefor, unless the consent of the purchaser to such substi-
tution is obtained prior to shipment.
(h) Misbranding. — To mark, brand, or advertise products of the
industry for the purpose or with the effect of misleading or deceiv-
ing purchasers with respect to the quality, quantity, size, gi-ade, or
substance of the materials purchased.
(i) Payment of Commission. — To pay or promise to pay, to an
employee of a customer or prospective customer without the knowl-
edge of his principal, a commission or consideration of any character
for the purpose of inducing, or compensating for a sale.
(j) C ommercial Bribery. — To secretly or otherwise offer or give
commissions, prizes, premiums, gifts, excessive entertainment, or
other benefits as an act of commercial bribery to any person con-
nected directly or indirectly with the purchase, selection, or use of
industry products, as an inducement thereto.
(k) Consignment of Shipments. — To ship any industry product to
an agent on consignment, at an indeterminate price.
(1) Lump-Sum Bidding. — To sell any industry product, except
on a unit price basis.
(m) Contingent Selling. — To enter into any contract for furnish-
ing any industry products contingent upon the sale or purchase of
any other thing, the performance of any other service or any other
contingency not appearing in the contract or complying with this
Code.
Sec. 2. Selling Below Cost. — No member of the industry shall
sell any commodities at a price below his own individual cost. " How-
ever, anv member may meet the price competition of any other mem-
ber of the industry provided that notice of this fact is immediately
sent to the Code Authority, and provided, further, that any such
sales below cost may be continued only until notice is received from
the Code Authority that such sales are no longer necessary to meet
competition. Cost shall be determined in accordance with the prin-
ciples enumerated in a standard cost system which shall be form-
ulated by the Code Authority with the approval of the Admin-
istrator.
Sec. 3. Published Prices. — Each member of the industry shall
publish and distribute to the trade his price lists for sales to con-
sumers and/or middlemen for various t3'pes, kinds, and grades of
products of the Industry, which shall include credit terms, trade
and cash discounts schedules of freight and cartage charges; copies
of which shall at the same time be submitted to the Code Authority.
The Code Authority shall immediately send copies thereof to
interested members of the industry. Any revision of such price lists
or other such information which may be thereafter made, shall be
published to the trade and filed with the Code Authority to become
effective on the date specified, but such revised price lists shall be
419
filed at least five days in advance of the effective date. Failure to
adhere to such published price lists, discounts, terms, or other con-
ditions of sale, shall constitute an unfair method of competition.
Sec. 4. Cmitracts and Quotations. — All quotations and contracts,
except petty sales to individuals or small sales for local consumption
not exceeding 100 units, for the sale of products of the industry, shall
be made or confirmed in writing and shall contain a definite state-
ment of price, quantity, terms of payments, time and place of de-
livery, and all other items necessary to form a complete under-
standing.
Sec. 5. Credit Practices. — In any region, group, or subregion, the
regional, group, or subregional committee may, subject to the ap-
proval of Code Authority, and with the approval of the Adminis-
trator, establish credit practices uniform within its respective region,
group, or subregion, which shall be binding upon the members of the
industry selling in that region, group, or subregion.
Article VIII — Modifications
Section 1. Canoellation. — 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 regulations 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. 2. Amendments. — 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 monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate 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 in-
creases except such as may be required to meet individual cost should
be delayed. But such increases should, so far as possible, be limited
to actual additional increases in the seller's costs.
Article XI — E^^ECTI^'E Date
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 133.
Registry No. 1011-1-02.
o
Approved Code No. 134
CODE OF FAIR COMPETITION
FOB THE
GAS APPLIANCES AND APPARATUS INDUSTRY
As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full com-
pliance 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 Gas Appliances and Apparatus Industry,
and hearings have 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 the subsection (a) of section 3 of the said act have been
met:
Now, therefore, I, Franldin 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 21, 1933.
237S3' 244-10-' 33 (421)
November 14, 1933.
The President,
The White House.
Sir: This is a report on the proposed Code of Fair Competition
for the Gas Apphances and Apparatus Industry in the United States,
and on the hearing conducted thereon in Washington, D.C., on
October 19, 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 and an 8-hour day, with
allowances for peak periods, and overtime at the rate of time and
one half for additional hours of labor.
Minimum wages of 40^ and ZH are provided for male and female
labor respectively in the North. In the South the rates provided are
35^ and 30^ respectively, 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 case the minimum shall not be less than the hourly
rate on July 15, 1929, and in no event less than 2,2^ and 27^. Not
less than eighty percent of the minima provided may be paid to
apprentices and learners, who majr constitute not more than 5%
of the total number of employees m any one month.
Where female labor is used to replace male labor the rates of pay
appHcable to male labor are to be paid for the work.
Kates of pay provided are to be paid whether the work is performed
on a piece- or time-work basis.
Equitable adjustment is to be made of all pay schedules above the
minima.
Child labor is prohibited, and no person under 18 years of age may
be employed in a hazardous occupation.
GENERAL STATEMENT
The Gas Appliances Institute, which sponsors the Code, includes
the Gas Range Institute, Gas Space Heater Institute, Gas Water
Heater Institute, Gas Boiler, Furnace and Conversion Burner Insti-
tute, Gas Apparatus and Accessories Institute, Tank Water Heater
Association, and members at large representing over 80% of the pro-
duction and sales volume of the Industry.
The invested capital is estimated at approximately $85,000,000
and the annual pay roll at about $9,000,000.
The manufacture of gas apphances is not centrahzed m any one
section of the country but is widely scattered, manufacturing umts
being located in New England, Eastern, Southern, Midwest, and
Pacific coast sections of the country. The depression has been um-
formly felt m all sections of the United States and during the years
1932 and 1933 practically all the companies engaged have operated
at substantial losses.
(422)
423
Members of the Gas Appliances Institute in the northern district
report pertinent data with respect to wages and hours as follows:
Number
employed
Minimum
rate of pay
per hour
Hours of
work per
week
1926
16, 086
20,285
11.513
16. 769
Cents
20
20
35
50
1929
43
January 1933..
46
October 1933
43
The minimum hourly rates provided in the Code represent a sub-
stantial increase in rates of pay for common labor over those previously
existing in the Industry. Minimum rates of twenty cents and lower
per hour were commonly reported in this Industry for the years 1926
to 1929. As indicated, a substantial increase in wage payments has
been effected through the operation of code hours and rates of pay.
The Industry estimates that approximately 6,000 employees will have
been added through the operation of the Code provisions, and that
with the equitable adjustments in wages above the minimum, there
will be added to its pay roll at least $500,000 a year.
FINDINGS
The Deputy Administrator finds 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 applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Gas Appliances and Apparatus 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 mil tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
Accordingly, I recommend the approval of this proposed Code of
Fair Competition for the Gas Appliances and Apparatus Industry.
Respectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
GAS APPLIANCES AND APPARATUS INDUSTRY
Aeticle I — Purposes
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Gas AppUances and Apparatus Industry,
and, upon approval by the President, shall be the standard of fair
competition for this Industry.
Article II — Definitions
The term "gas appliances", as used herein, means gas ranges,
gas water heaters, gas space heaters, domestic gas boilers, domestic
gas furnaces, domestic gas conversion burners, gas refrigerators,
gas meters, gas thermostat controls, gas mantles, and, generally,
gas applicances and gas apparatus of all styles, types, and kinds
for use in the production, distribution, and utilization of natural
gas, Hquefied petroleum gases, and of manufactured gas, including
uses in cooking, heating, refrigeration, and lighting, excludmg,
however, any products covered by other codes approved by the
President. . . , ,
The term "gas appliances industry" as used herein includes the
manufacturing and assembling within the United States of gas appli-
ances and gas apparatus, and the manufacturing and assembling of
parts therefor, including repair parts and repairs, and the selling of
Buch appliances to retailers, wholesalers, and consumers, but does not
include the selling at retail.
The term "Administrator" as used herein means the Administrator
appointed by the President to administer Title I of the National
Industrial Recovery Act at the time of office.
The term "Institute" as used herein means Gas AppUances Insti-
tute, a trade association, having its office at 3900 Board of Trade
Building, Chicago, Ilhnois.
The term "Committee" as used herein means the Committee
estabUshed in Article VI of this Code. .
The term "employee" as used herein includes anyone engaged in
the trade/industry in any 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
such employee is compensated or employed.
The term "effective date" as used herein means the 10th day after
this Code shall have been approved by the President of the United
States.
The term "expiration date" as used herein means the expiration
date indicated in the Act, or the earhest date prior thereto on which
(424)
425
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.
The Southern Wage District is defined as comprising North
Carolina, South Carolina, Florida, Georgia, Alabama, Tennessee,
Mississippi, Virginia, and Louisiana; and the Northern Wage District
is defined as comprising all other States in the United States, proper,
including the District of Columbia and Alaska.
Article III — Mandatory Provisions as to Labor
Employers in this Industry shall comply with the requirements of
the National Industrial Recovery Act, as follows:
(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 employee and no one seeking employment shaU 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 wdth the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
Article IV — Conditions of Employment
WAGES
On and after the effective date the minimum wage which shall be
paid by any employer to common labor 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 the minimum rates for female employees shall be 33Kfi$ per hour
in the Northern Wage District.
On and after the effective date the minimum wage which shall be
paid by any employer to common labor shall be 35^ per hour for males
and 30f5 per hour for females in the Southern Wage District, 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 hourly rate on July 15, 1929, and in no event
less than 32^ for males and 27^ for females.
Provided, further, that employees apprenticed under, and in accord-
ance with, the laws of any State, and learners may be paid not less
than 80% of the minimum wages established in paragraph one of this
Article for the Northern Wage District, and paragraph two of this
Article for the Southern Wage District, and the total number of such
apprentices and learners shall not exceed 5% of the total number
employed by any such employer in any calendar month; and
Provided, further, all learners shall receive not less than the mini-
mum rate of pay after three months' employment.
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.
426
Equitable adjustments in all pay schedules of factory employees
(and other employees receiving less than $35.00 per week) above the
minima, shall be made on or before fifteen days subsequent to the
effective date of this Code by any 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, re-
quired to be filed under this Code, shall contain all wage increases
made since May 1, 1933.
In the case of an employee whose compensation is based upon a
measure other than time, the minimum compensation paid shall be no
less than such employee would be entitled to receive if the compensa-
tion were measured by time rate.
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.
On and after the affective 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 4, Paragraphs 1, 2, and 3,
shall be not less than at the rate of $15.00 per week.
Office boys and girls shall be exempted from the provisions of this
Section, provided they are paid at the rate cf not less than 80% of the
above minimum wages, and provided that they do not exceed in
number more than one to every ten oflSce employees.
HOURS
On and after the effective date employers shall not operate on
a schedule of hours of labor in excess of 40 hours per week per
employee.
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 preceding
paragraphs, provided such additional hours shall be paid for at the
rate of time and one half. Employees working more than eight hours
in any 24-hour period shall be paid time and one half for all time in
excess of eight hours during such period.
No employee shall knownngly be permitted to work in the aggregate
in excess of the above prescribed number of hours irrespective of
whether such employee be on the pay roll of more than one employer;
and
427
Provided, further, that nothing in the foregoing employment
provisions shall apply to executive, administrative, and supervisory
employees who receive $35.00 or more per week; and outside salesmen.
GENERAL LABOR PROVISIONS
It is understood, however, that old and partially disabled employees
are not included in the above labor provisions, except that they shall
in no case be paid less than 80% of the above minimums, and pro-
vided 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 number of employees in such plants employing 100
or more.
It is further understood that watchmen are not included in the
hours provisions of tliis Article, except that 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.
Employers shaU not reclassify employees, or duties, or occupations
of employees so as to defeat the purposes of this Act.
Article V — Child Labor
Employers shall not employ or permit to be employed any person
under the age of sixteen (16) years, provided that no person under the
age of eighteen (18) years shall be employed in a hazardous occupa-
tion and provided, further, that where a State Law specifies a higher
minimum age, no person below the age so specified by such State Law
shall be employed within that State.
Article VI — Administration
1. Agency jor Administration. — The agency for administering, super-
vising, and promoting the performance of this Code by the Gas
Appliances and Apparatus Industry, shall be the Gas Appliances
Committee. The membership of the Committee shall include the
members of the Governing Committee of the Institute. In addition
thereto (a) the Administrator may cause an election to be held under
regulations, prescribed by the Administrator, for the selection of a
member of this Committee by employers of the Industry who are not
members of the Institute, provided that in any such election members
eligible to vote shall be employers accepting the proper pro rata share
of the cost and responsibility of administering this Code as defined in
Article VII hereof, (b) also, the Administrator may appoint not to
exceed three members, without vote, to serve with the Gas Appliances
Committee in its administration of this Code. Such members if and
when appointed shall serve for a term of from 6 months to 1 year and
their appointments shall be so arranged that they do not expire at
the same time, and such members shall serve without expense to the
gas appliances industry.
2. Functions ojthe Agency. — The Committee is appointed the agency
for the Industry and for the following purposes:
(a) To collect, compile, and distribute such data and statistics as
may be required under this Code, or as may be requested by the
Administrator, or, in the opinion of the Committee, are pertinent to
effectuate the National Industrial Kecovery Act and to require such
428
records in the ofRccs of the members of the Industry as may be neces-
sary or advisable in procuring or furnishing such data or statistics;
such information shall be confidential, except insofar as disclosure
may be necessary for the effective administration and enforcement of
the Code.
(b) In addition to information required to be furnished to the Com-
mittee, 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.
(c) To represent the Industry in conferring with the Administrator
with respect to the application of this Code and of said Act and of any
regulations issued thereunder, and further to represent the Industry
in filing amendments or supplementary provisions to this Code or
additional Codes, with the Administrator, and the representation of
the Industry at pubUc hearings.
(d) To cooperate with the Administrator and other proper govern-
ment officials in the administration and enforcement of this Code.
(e) To hear, determine, and settle complaints between members of
the Industry.
(f) To hear complaints from employers and employees in the In-
dustry and if possible to adjust the same.
(g) To perform such other acts as may be necessary or proper to
enable the Industry to function under this Code and under the Na-
tional Industrial Recovery Act.
Article VII — Participation
Section 1. Membership in Institute. — Membership in the Gas
Appliances Institute shall be open to all employers in the Industry
and no inequitable restrictions shall be imposed upon admission to
membership.
Sec. 2. Cost oj Administration. — Any employer subject to the
jurisdiction of this Code and receiving the benefits of the Code and/or
the benefits of the activities of the Committee shall pay to the Com-
mittee his equitable proportionate share of the expense of formulat-
ing and putting into effect and administering tliis Code, and any other
costs which may be incurred in the preparation and/or administra-
tion of the Code by said Committee. The part of such expenses
which shall be assessed against such employers shall be assessed by
the Committee, which Committee in making such assessment shall
take into account the number of employers, the volume and class of
business, and an equitable consideration of any and all matters which
should be taken into account in determining the proper assessment.
Failure of any assenting employer to pay any such assessment for
a period of thirty days after the date on wliich it shall become pay-
able shall entitle the Committee to deprive such employer of liis
participation in the administration of the Code as therein or herein
provided, and such employer shall continue to be liable for his pro-
portionate share of all due and unpaid assessments.
Article VIII — Bases for Prices
No employer shall sell or exchange any product of his manufacture
at a price or upon such terms or conditions that wUl result in the cus-
tomer paying for the goods received less than the cost to the seller,
429
detemiined in accordance with the standard method of accounting to
be prescribed by the Committee, subject to the approval of the Ad-
ministrator; provided, however, that dropped lines, seconds, or in-
ventories which must be converted into cash to meet emergency needs
may be disposed of in such manner and on such terms and conditions
as the Committee and the Administrator may approve and as are
necessary to move such product into buyers' hands, and provided
further, that selling below cost in order to meet existing competition
on products of equivalent design, character, quality, or specifications
shall not be deemed a violation of this Article if provision therefor is
made in supplemental codes hereafter prepared for any branch or
subdivision of the Industry.
Article IX — Sales Prices and Terms
Each employer shall publish and file with the Committee his sales
prices and terms. Such sales prices and terms may provide reason-
able differences as to:
(a) Export Sales.
(b) Sales to Large Purchasers.
(c) Sales to Wholesalers, Jobbers, and Brokers.
(d) Sales to Retailers.
(e) Direct Sales to Consumers.
The published sales prices and terms of any employer applicable
to one class are not applicable to any other class, and if so used shall
be a violation of this Code. Sales terms shall be published by each
employer to the Committee under rules established by the Committee.
On and after the effective date, no employer shall oft'er any product
of the Industry for sale at less than his pubHshed sales prices and
terms except as provided in Article VIII.
Article X — Trade Practices
The practices and methods as set forth in the following paragraphs
1 to 12, inclusive, including the subparagraphs thereof, in this Article
X, are hereby designated as unfair methods of competition, and indul-
gence by any member of the Industry in any of the same shall be
violation of this Code:
(1) Making any agreement or contract after the effective date of this
Code the effect of which %\'ill amount to the sale and/or delivery of
gas appliances on consignment; provided, however, that this sub-
section shall have no binding force and effect as applying to contracts
existing prior to the approval of tliis Code.
(2) Allowing terms of payment other than those stated in the
published sales terms of each emplo3"er except as otherwise provided
herein.
(3) Selling or offering to sell any merchandise with a repurchase
agreement.
(4) Allowing the return of merchandise at other than the fair
market value at the time of its return, except merchandise having
manufacturing defects may be returned for full credit.
(5) Purchasing or allowing credit for second-hand merchandise at
an amount greater than its fair market value.
(6) Using premiiims in the sale of merchandise.
430
(7) Giving gratuities or making payments to any employee or
agent of a customer or prospective customer.
(8) Selling or offering for sale any article containing false mai-king
or branding with the intent or the effect of misleading or deceiving
purchasers with respect to rating, quahty, grade, or substance of the
merchandise.
(9) Defaming competitors by falsely imputing to them dishon-
orable conduct, inabihty to perform contracts, questionable credit
standing, or other false representations or the false disparagement of
the grade or quaUty of their products for the purpose or with the
effect of misleading or deceiving purchasers or prospective pur-
chasers.
(10) Using excessive inducements or entertainment or other prac-
tices for their agents, dealers, or distributors which tend to add unduly
to sales costs.
(11) Imitating or simulating any trade mark, trade name, slogan,
or other marks of identification of a competitor, having the tendency
and capacity to deceive or mislead purchasers or prospective pur-
chasers.
(12) So long as the maker of any trade-marked "Gas Appliance"
(or his successor in business) continues to make and supply repair
parts therefor, it shall be an unfair method of competition for any
other person to make and supply repair parts for such "Gas Ap-
pliances" unless (a) the name of the maker of such repair parts is
plainly marked on each part (or if this is impracticable on the package
or tag) and unless (b) said parts are otherwise marked, packaged, and
sold without imitative labels, and in such a manner as to clearly
indicate to the ultimate user that they are not made by the maker
of the original "Gas Appliance."
Article XI. — Powers Reserved to the President
1. This Code and all the provisions thereof are expressly subject
to the right of the President, in accordance with the provisions of
Clause 10 (b) of the National Industrial Recovery Act, from time to
time, to cancel or modify any order, approval, license, rule, or regula-
tion, issued under Title I of said Act, and specifically to the right of
the President to cancel or modify his approval of this Code or any
conditions imposed by him upon his approval thereof.
Article XII — General Provisions
1. Amendments. — Such of the provisions of this Code as are not
required by the National Industrial Recovery Act to be included
herein may, with the approval of the President of the United States,
be modified or eliminated as changed circumstances or experience
may indicate. This Code is intended to be a basic code, and study
of the trade practices of the gas appliances and apparatus industry
will be continued by the Committee with the intention of submitting,
from time to time, additions to tliis Code applicable to all employers
in the gas appliances and apparatus industry and supplemental codes
applicable to one or more branches or subdivisions or product classi-
fications of the gas appliances and apparatus industry; such supple-
431
mental codes, however, to conform to, and be consisteiit with, the
provisions of this code as now constituted or hereafter changed:
2. Monopolies not encouraged. — No provisions in this Code shall
be interpreted or appUed in such manner as to:
(a) Promote monopohes or monopohstic practices ;
(b) Permit or encourage unfair competition;
(c) Ehminate or oppress small enterprises; or
(d) Discriminate against small enterprises. ,. r. j u n
3 Restriction oj Liability.— 'Nothing contamed m this Code shall
be deemed to constitute the members of this Code partners for any
^^F^Avplication of the Code.—li any employer in this Industry is also
an employer in any other industry, the provisions of this Code shall
apply to and affect only that part of the business of such an employer
which is a part of the Industry covered by this Code.
5 Approval of the Administrator.— All action taken by the Com-
mittee in the administration of the Code shall be subject upon review
by the Administrator to his disapproval or modification.
Approved Code No. 134
Registry No. 1129-1-11
Approved Code No. 135
CODE OF FAIR COMPETITION
FOR THE
CIGAR CONTAINER INDUSTRY
As Approved on November 27, 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 Cigar Container Manufacturers Code,
and hearings having been held thereon and the Administrator hav-
ing rendered his report containing an analysis of the said code of
fair competition together with 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 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,
Administrator.
The White House,
Novemher 27, 1933.
(433)
23784° 244-103 33
November 1, 1933.
The Peesident,
The White Home,
Sir: This is a report on the Code of Fair Competition for the
Cigar Container Industry in the United States, as revised after a
hearing conducted in AVashington on October 19, 1933, in accordance
with the provisions of the National Industrial Recovery Act.
PROVISIONS FOR HOURS AND WAGES
The maximum is 40 hours a week with the following exceptions :
Executives and Supervisors receiving $35 per week or more.
Watchmen, firemen, delivery, or repair crews, not to exceed 10 per-
cent of emploj^ees in any one plant; time and one-half for hours
in excess of 40 hours per week. During the peak season from Sep-
tember 10th to December 10th employees may be employed 48 hours
per week provided the average weekly hours over any six-month
period shall not exceed an average of 40 hours per week. Productive
machinery may not be operated more than 8 hours per day except
during the three-month peak season when machinery and employees
may not be employed more than nine and one half hours in any
one day.
The minimum wage providecl for employees shall be 40 cents per
hour in the Northwest, 321/2 cents per hour in the North, and 30
cents per hour in the South. Persons Avorking on piece work are
guaranteed minimum hourly wages. Weekly compensations which
were higher as of June 15, 1933, than minimum provided for in the
Code shall not be reduced. Differentials existing between common
labor and skilled labor before enactment of Code are to be main-
tained. Females performing men's work shall receive men's wages.
Learners shall receive 80 percent of minimum wage and shall not be
employed as learners for a period longer than eight weeks.
CHILD LABOR
The age limit is 16 years, except in hazardous positions where the
age limit shall be 18 years.
ECONOMIC EFFECTS OF THE CODE
The average weekly hours in the industry have been 50 to 55 hours
per week. The hour schedule fixed by the Code should increase
employment in the industry from 20 percent to 25 percent.
The" minimum wages represent an increase of from 42 percent to
81 percent from present low levels and from 15 percent to 41 percent
above the levels of 1929. The members of the industry have evi-
denced a readiness to comply with the spirit of the Act in every way.
(434)
435
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
Cigar Container 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
CIGAR CONTAINER INDUSTRY
Article I — Purposes
This Code is an undertaking . in self government subject to the
supervision of the Administrator of Title I of the National Indus-
trial Recover}^ Act for the purpose of increasing employment, estab-
lishing fair and adequate wages, effecting necessary reduction of
hours, improving standards of labor, and eliminating unfair trade
practices, to the end of rehabilitating the Cigar Container Industry,
avoiding further depletion and destruction of capital assets and
enabling it to do its part toward establishing that balance of indus-
tries which is necessary to the restoration and maintenance of the
highest practical degree of public welfare. Upon being approved
by the President, this Code shall constitute the standards of Fair
Competition for the Cigar Container Industry, and shall be binding
upon every member thereof.
Article II — Definitions
(a) The term " Cigar Container Industry " as used herein includes
the manufacture for sale or for use by the manufacturer of all types
of cigar containers which are required by federal laws or regulations
to bear a factory number and which are subject to the provisions of
the Internal Revenue acts of the United States and regulations issued
thereunder, as now in force or as hereafter amended.
(b) The term " employee " as used herein includes anyone engaged
in the industrj^ in any capacity receiving compensation for his
service irrespective of the nature or method of paj^ment 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
Title I of said Act.
(f ) The term "Association " as herein used means the National
Cigar Box Manufacturers Association.
Article III — Hours or Labor
(a) Except as hereinafter otherwise provided no employee shall
be j)ermitted to work in excess of 40 hours in any one week.
(430)
437
(b) The maximum hours fixed in the foregoing provision shall not
apply:
1. To employees in an executive or supervisory capacity receiving
$35.00 or more per week;
2. To watchmen, firemen, delivery or repair crews ; provided, how-
ever, that the number of such employees shall not exceed 10 percent
of the total number of employees in any single plant ; and provided
further, that one and one half times their normal rate shall be paid
to all such employees for hours worked in excess of the maxinunn
weekly hours (40 hours) hereinabove provided.
(c) The members of the industry may, if necessary to meet custo-
mers' requirements, during the season of peak demand beginning
September 10th and ending December 10th, after application to and
approval of the Authority, permit employees to work not more than
48 hours in any one week; provided, however, that the average
weekly hours of any employee in any six months' period shall not
exceed the maximum hours specified in section (a) of this Article,
(d) Members of the Industry shall not operate productive
machinery in the industry nor engage employees for more than one
shift of eight hours per day; provided, however, that during seasons
of peak demand hereinabove referred to, productive machinery may
be operated and employees engaged not more than nine and one-half
hours in any one day.
(e) No employer shall knowingly engage any employee for any
time which when totaled with that already performed w'ith another
employer or employers, exceeds the maximum permitted herein.
Article IV — Minimum Wages
(a) No employee shall be paid less than the rate hereinbelow set
forth for the territory designated :
1. Washington, Oregon. California, Utah, Nevada, and Colorado
(North of 38 degrees north latitude), 40^ per hour.
2. All the remainder of the United States north of 39 degrees,
43 minutes north latitude, 321/2^' per hour.
3. All the remainder of the United States south of 39 degrees,
43 minutes north latitude 300 per hour.
(b) Persons who are limited in their earning power through phys-
ical or mental defects, age, or other infirmities, may be employed on
lighter duties below the minimum wage hereinabove provided and for
longer hours than are herein authorized if the employer obtains
from the State Labor Commission a certificate authorizing the em-
ployment of such emploj^ees in such manner; provided, however, the
number of such employees shall not exceed five percent of the total
number of employees in an}^ plant nor receive less than 80% of the
minimum wage required by this Code.
(c) This article establishes a minimum rate of pay regardless of
whether an employee is compensated on a piece rate, time rate, or
other basis.
(d) The weekly compensation effective June 15, 1933, in excess of
minimum wage hereinabove specified shall not be reduced, notwith-
standing that the hours of work in any such employment may be
reduced.
438
(e) The wages of all employees receiving more than the minimum
rates herein prescribed shall be equitably adjusted and the differen-
tials existing prior to the date of the approval of this Code
maintained.
(f ) Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
(g) The minimum wages hereinabove specified shall not apply to
apprentices or learners; provided, however, that the total number of
such apprentices and learners shall not exceed five percent of the
total' number of employees engaged by a member of the industry in
any one plant; and provided further that the wages paid to such
apprentices and learners shall not be less than eighty percent of the
minimum rates hereinabove specified ; and provided further that the
period of apprenticeship or learning shall not exceed eight weeks.
Article V — General Labor Provisions
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives, or
in self -organization, or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) No employee, and no one seeking employment, shall be 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) Emplo3^ers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of eniiDloyment, ap-
proved or prescribed by the President.
(d) No person under 16 years of age shall be employed in this
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 duly issued by the authority emj^owered
to issue employment certificates showing that the employee is of the
required age.
(e) Home work shall not be permitted.
(f) Within each State no provision of this Code shall 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 provided under this
Code.
(g) Employers shall not reclassify employees or duties of occu-
pations performed by employees so as to defeat the purposes of
the Act.
(h) Each employer shall post in conspicuous and accessible places
full copies of this Code.
Article VI — Administration
To effectuate further the policies of the Act, a Code Authority,
hereinafter referred to as the Authority, is hereby constituted to co-
operate with the Administrator in the administration of this Code.
439
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of seven individuals or such
other members as may be approved from time to time, by the Admin-
istrator, to be selected by a fair method. The Aclministrator, in
his discretion, may appoint additional nonvoting members to repre-
sent the President. The Code Authority shall be the official agency
of the Industry for the Administration of this Code.
(b) The Code Authority shall be selected as follows:
Within thirty da3^s after the approval of this Code by the Presi-
dent, the proponents of the Code, the National Cigar Box Manu-
facturers' Association, after due and reasonable notice to the Indus-
try, shall call a meeting of the members of the Industry for the
puri:)Ose of selecting the members of the Code Authority. At such
meeting and election, each member of the Industry shall be entitled
to one vote either in person or by proxy and the notice of such
meeting shall so specify.
One member of the Code Authority shall be selected by the
National Cigar Box Manufacturers' Association, one member of the
Code Authority shall be selected by the Eastern Cigar Box Manu-
facturers' Association; one member of the Code Authority shall be
selected by the Western Cigar Box Manufacturers' Association ; and
one member of the Code Authority shall be selected by members of
the Industry who are not members of any of the Associations herein-
above named.
Each member so selected shall be the representative of the group
by whom such member is elected. The remaining three members of
the Code Authority shall be elected by a majority vote of all mem-
bers of the Industry present in person or by proxy.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activity of the xluthority shall —
1. Impose no inequitable restriction on membership, and
2. Submit to the Administrator true copies of its articles of asso-
ciation, bylaws, regulations, and any amendments made thereto,
together with such other information as to membership, organiza-
tion, and activity as the Administrator may deem necessary to
effectuate the purposes of this 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 liear-
ing as he may deem proper; and thereafter if lie shall find that the
Code Authority is not truly representative and does not in other
respects comply with the provisions of the Act, he may require an
appropriate modification in the method of selecting the Code
Authority.
2. The AuthoHty shall have the following duties and fowers to
the extent permitted hy the Act, subject to the right of the Adminis-
tratoT on review to disaiyprove or modify any action taken by the
Authority.
(a) The Authority shall be the General Planning and Administer-
ing Agency of this Code.
(b) The Authority may make such rules and regulations and im-
pose upon members of the Industry such restrictions as may be
necessary to administer this Code.
440
(c) The Authority is also set up to cooperate with the Adminis-
trator in making investigation as to the functioning and observance
of any provisions of this Code, at its own instance, at the request
of the Administrator, or on complaint of any person affected, and
report the same to the Administrator.
(d) The Authority shall coordinpte the Administration of this
Code with such codes, if any, as may affect this Industry, or any
related industry, with a view ^o promoting joint and harmonious
action upon matters of commo ^ interest.
(e) The Authority shall designate such divisional agencies to
assist in the proper supervision and operation of this Code as it
may deem wise and may delegate to said agencies such power granted
by this Code to the Authority as in its judgment may be necessary
to the efficient and effective operation thereof. The Authority may
from time to time change the personnel of any agency which it has
appointed, or modify the powers delegated thereto. The Authority
shall, however, reserve final responsibility with respect to any powers
or duty delegated by it.
Article VII— Code Reports and Participation
(a) In order that the President may be informed of the extent of
the 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 Ggar Container Industry, the Authority
shall make such reports as the Administrator may require, periodi-
cally, or as often as he may direct, and each member of the Indus-
try shall make such sworn or unsworn reports to the Authority,
periodically, or as often as it may direct, on wages, hours of labor,
conditions of employment, number of employees, production, ship-
ments, sales, stocks, prices, and other matters necessary for the Ad-
ministration of this Code as the Authority may require.
(b) 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. Those who
participate or accept the benefits of the activities of the Authority
shall pay their reasonable share of the expense of its administration
of this Code. The reasonable share of the expenses of administra-
tion 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 con-
sideration.
(c) Statistical information required by the Code Authority in
accordance with the provisions of this Code shall be deemed confi-
dential and shall not be divulged to any member of the Industry, or
any other person, except in summary, but shall be made available to
the Administrator upon request and may be used to facilitate the
administration of this Code. In the event that summary informa-
tion in effect divulges the identity of individual members of the In-
dustry it shall not be revealed to any other member of the Industry
except upon the written permission of said member.
441
(d) 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 neces-
sar}^ for the purposes recited in Section 3 (a) of the Act.
Article YIII — Cost Protection
(a) The Authority shall emplo}- a firm of representative certiiied
public accountants to formulate and submit to it a uniform method
of cost inclusion and application, and when this shall have been
adopted by the Authority, and approved by the Administrator, each
member of the industry shall immediately proceed deiinitel}^ to deter-
mine the cost of each type of container he produces in accordance
with the method so adopted, and with regulations issued by the Au-
thority thereunder. Members of the Industry shall be entitled, if
they so desire, to employ their own certified public accountants, pro-
vided that in ascertaining their costs through their own certified
accoimtants they shall comply with the requirements of the uniform
method of cost inclusion adopted and approved as herein provided.
(b) Whenever and so long as the Authority determines that it
will contribute toward the accomplishment of the declared purposes
of the Code, and whenever it is satisfied that it is able to determine
the costs under the uniform method hereinabove mentioned, the Au-
thority is authorized to establish, and from time to time revise, mini-
mum prices, to protect the cost of the various t^'pes of containers
manufactured by the Industry. Such minimum prices shall be es-
tablished with due regard to the maintenance of free competition
among the various types of containers, with the products of other
industries, and to the encouragement of the use of said products;
and shall be not more nor less than the weighted average costs deter-
mined as provided in this Article and under such rules and regula-
tions as the Authority maj^ from time to time adopt and issue. The
original average weighted cost and any revisions thereof as provided
for herein shall be approved by the Administrator as equitable and
fair before being announced by the Authorit}'.
(c) Until the Authority shall have established minimum prices as
provided in Section (b) hereof, no member of this Industry shall sell
any tA'pe of container below his own cost as established in paragraph
(a) excepting to meet the competition of a lower cost producer, and,
upon being notified by the Authority that it has established a mini-
mum price for any type of container, as provided in paragraph (b),
no member of the Industry shall sell any such container below that
minimum price.
Article IX — Cancellation or Modification
This Code, and all the provisions thereof, are expressly made sub-
ject to the rights 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 modify his approval of this Code, or any conditions
imposed by him upon his approval thereof.
442
After due notice and hearings this Code may be amended upon
the recommendation of the Code Authority or any interested party
or group, or upon the Administrator's own notice, and any modifica-
tion so arrived at shall be effective when apjoroved by the President.
Article X — Monopolies
(a) This Code shall not be construed, interpreted, or applied so as
to promote or jDermit monopolies or monopolistic practices, and shall
not be availed of for that purpose.
(b) The provisions of this Code shall not be so interpreted or ad-
ministered as to eliminate or to oppress, or to discriminate against
small enterprises.
Article XI — Violations
Violation by any person of any provisions of this Code, or the
submission of any false statement or report to the President, or to
the Authorit}^, shall constitute an unfair method of competition, and
the offender shall be subject to the penalties imposed by the National
Industrial Recovery Act.
Article XII — Rules of Fair Trade Practice
(a) No member of the Industry shall make, or permit to be made,
direct quotations of prices, terms, or quantities guaranteed for a
period in excess of thirty days.
(b) No member of the Industry shall grant cash discounts in excess
of "2%, ten days, e.o.m.", or "thirty days net, e.o.m.", nor extend
credit in excess of sixty days from net due date.
(c) No member of the industry shall secretly offer, allow, or per-
mit to be given any rebates, commissions, refunds, credit, free goods,
unearned discounts, whether in the form of monej^, material, or
otherwise, for the purpose of influencing a sale, nor shall a member
of the industry secretlj^ extend to any customer any special service
or privilege not extended to all customers of the same class.
(d) No member of the industry shall sell cigar containers on
consignment.
(e) Commercial Brihery. — No member of the Industry shall di-
rectly or indirectly, give or permit to be given, or offer to give, money
or anything of value to agents, employees, or representatives of cus-
tomers or prospective customers, or to agents, employees, or repre-
sentatives of competitors' customers or prospective customers, with-
out the knoAvledge of their employers or principals, as an induce-
ment to influence their employers or princi]:)als to purchase or con-
tract 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 wath competitors.
(f) No member of the Industry sliall use or substitute in the sale
of any cigar containers any materials of a superior or inferior quality
to that specified by the customer, or specified in any quotation made
prior to any such sale, and accepted by the customer.
(g) Defamation. — No member of the Industry shall defame com-
petitors by falsely imputing to them dishonorable conduct, ijiability
443
to perform contracts, questionable credit standing, or by other false
representations or by the false disparagement of the grade or quality
of their goods. Any person, firm, or corporation engaged in supply-
ing material to members of the Industry, or any employee of any such
l^erson, firm, or corporation, making or permitting to be made any
false representations as to an}^ member of the Industry, his financial
standing, personal integrity, commodities, prices, or ability to serve
his trade, may be reported to the Authority which shall promptly
report such false representations to the proper agency of the Code
of Fair Competition, if any has been theretofore approved by the
President, which constitutes the standards of Fair Competition for
such j)erson, firm, or corporation.
Article XIII — Effective Date
This Code shall be effective on the second Monday after the date
of its .approval by the President.
Approved Code No. 135
Registry No. 303-02
O
Approved Code No. 136
CODE OF FAIR COMPETITION
FOR THE
VITRIFIED CLAY SEWER PIPE MANUFACTURING
INDUSTRY
As Approved on November 27, 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 Vitrified Clay Sewer Pipe Manufacturing
Industry and hearings having been held thereon and the Admin-
istrator 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 hereby adopt and approve the report, reconmiendations.
and findings of the Administrator and order that the said Code of
Fair Competition for the Vitrified Clay Sewer Pipe Manufacturing
Industry be and it is hereby approved.
FRANKLIN D. ROOSEA^ELT.
Approval recommended :
Hugh S. Johnson,
Adviinistrator.
The Whitk House,
Novemler 27, 1933.
(445)
23785° 244-104 33
November 6, 1933.
Tlie President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Vitrified Clay Sewer Pipe Manufacturing Industry in the United
States, as revised after tlie hearing conducted in Washington on
October 30, 1933, in accordance with the provisions of the National
Industrial Recovery Act.
PROVISIONS or THIS CODE AS TO WAGES AND HOURS
This code provides for a maximum work week of 40 hours, aver-
aged over a thirty-day period, and a maximum work day or eight
hours for plant employees; and for other employees, a maximum
work week of forty hours, with a ten percent tolerance for emer-
gencies provided that this does not result in an average of more than
forty hours of work per week in any thirty-day period. The fol-
lowing are excepted :
(1) Traveling salesmen, employees whose wage is $35.00 or more
per week and who are engaged in technical work or in managerial,
executive, or supervisory capacities ;
(2) Watchmen, who are not to be employed in excess of twelve
hours a day nor more than one hundred and forty-four hours in any
two-week period;
(3) Employees engaged in continuous processes, those whose work
requires their presence prior to or after the regular hours of opera-
tion or those whose work is dependent upon climatic conditions.
These are not to be employed in excess of forty-eight hours per week;
(4^ Employees engaged in emergency maintenance or emergency
repair work due to breakdown or required for the protection of life
or property, who are to be compensated at the rate of one and one-
third times the normal rate for time worked over forty-eight hours
per week averaged over a thirty-day period.
The employees enumerated in (3) and (4) above may not exceed
fifteen percent of the total employees in any operating plant.
The code provides for minimum rates of pay of thirtjj^-seven cents
per hour in the North and twenty -seven cents per hour m the South,
whether payment be made on a time rate or piece work basis. So
far as practicable, earnings are not to be decreased and rates of pay
in excess of these minima are to be increased so as to preserve equi-
table differentials.
The minimum pay for accounting, clerical, and office employees
is to range from $16.00 to $14.00 per week, depending upon the
size of the city, in the trade area of which they are employed.
Watchmen are to be paid not less than $15.00 per week. Aged
or infirm may be paid not less than eighty percent of the minimum
(446)
447
wages provided for other employees, but these may not exceed five
percent of the employees in any plant.
Employment of any person under sixteen years of age, or in a
hazardous occupation, of any person under eighteen years of age, is
prohibited.
ECONOMIC EFFECTS OF THE CODE
According to figures presented at the hearing, the sales for this
industry have declined from approximately $19,000,000 in the year
1928 to an estimated $3,300,000 in the year 1933, a decline of approxi-
mately eighty-three percent. The number of employees has de-
creased from 10,284 in 1928 to 4,349 in 1933, a decrease of approxi-
mately fifty-eight percent.
In the continuous process occupations, a substantial increase in
employment should result from the code. In the non-continuous
occupations, the result will be rather a shortening of the lay-off
periods, due to the intermittent type of operation which prevails in
this industry.
The minimum wages proposed in the code are from fifty percent
to sixty percent higher than those in effect in June of this year.
The proposed southern minimum wage is higher than that in effect
in that section in 1929.
FINDINGS
The Administrator finds that :
(a) The Code as recommended complies in all respects with the
l>ertinent 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
Vitrified Clay Sewer Pipe 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 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,
Administrator,
CODE OF FAIR COMPETITION
FOR THE
VITRIFIED CLAY SEWER PIPE MANUFACTURING
INDUSTRY
Article I — Ptjeposes
To effectuate the policies of Title I of the National Industrial
Jlecovery Act, the following provisions are submitted as a Code of
5Fair Competition for the Vitrified Clay Sewer Pipe Manufacturing
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 " Vitrified Clay Sewer Pipe Manufacturing Industry "
as used herein includes the manufacture, and sale by the manufac-
turer, of vitrified clay sewer pipe, clay ring pipe, clay underdrains,
clay wall coping, clay segment sewer blocks, clay liner plates, clay
chimney pipe, clay flue lining, salt glazed clay drain tile which is
fabricated in vitrified clay sewer pipe plants, and such branches and
subdivisions thereof as may from time to time be included under
the provisions of this Code ; provided, however, that any sewer pipe
manufacturer may elect to operate under the code of the Dram Tile
Industry for his drain tile production, upon giving notice in writing
to the Code Authority of such intention.
The term "employee" as used herein includes any one 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 " as used herein includes any one by whom
any such employee is compensated or employed.
"Plant" means any establishment engaged in the manufacture
of vitrified clay sewer pipe as defined above.
"Associations " means the regional association, or organizations of
Regions or Districts set up for the purpose of making effective the
terms, provisions, and policy of the National Industrial Recovery
Act.
The term " member of the Industry " includes any one engaged in
the Industry as above defined, either as an employer or on his own
behalf.
" North " means all territory in the United States except that hsted
beloAV under " South."
" South " means the following States : Alabama, Arkansas, Florida,
Georgia, Kentucky, Louisiana, Mississippi, North and South Caro-
lina, Oklahoma, Tennessee, Texas, District of Columbia, and
Virginia. ^
(448)
449
" Region " means a major territory established with definite bound-
aries for the purpose of administering this Code in accorth.nce with
powers delegated by the Code Authority.
" District " means a subdivision of a Region, with definite bound-
aries, established for the purpose of administering this Code in
accordance with powers delegated b}^ the Regional Committee.
The terms " President ", "Act "," and "Administrator " as used
herein mean, respectively, the President of the United States, the
National Industrial Recovery Act, and the Administrator of said
Act.
Article III — Hours
Recognizing the importance of achieving the maximum practicable
stability of employment, members of the Industry establish the
following provisions :
1. Except as provided for in subsection 3 below, no employer shall
cause or permit any plant employee to work at an average of more
than forty hours per week in any thirty-day period, nor more than
eight hours in any one daj'.
2. Except as provided for in subsection 3 below, no member of the
Industry shall employ any accounting, clerical, office, service, or sales
employees, except commercial traveling salesmen, or any other em-
ployee not mentioned above for more than forty hours in any one
week, with a ten percent tolerance for emergencies, provided that in
no event shall such employment average over forty hours a week in
a thirty-day period.
3. The maximum hours of labor provided for in subsections 1 and
2 of this Article shall not apply to the following :
(a) Employees whose wage is $35 or more per week and who are
engaged in technical work or in managerial, executive, or super-
visory capacities.
(b) Employees acting as watchmen, who shall not work in excess
of twelve hours a da}^ or more than 144 hours in any two-weeks period.
(c) Employees whose labor requires their presence prior to or
after the regular hours of operation, whose maximum hours shall
be forty-eight hours in any one week.
(d) Emploj^ees whose labor is dependent upon climatic condi-
tions, whose maximum hours shall be forty-eight hours in any one
week,
(e) Employees engaged in continuous processes, whose maximum
hours shall be forty-eight hours in any one week.
(f^ Employees engaged in emergency maintenance or emergency
repair work due to breakdown or required for the protection of life
or property, who shall be compensated at the rate of one and one
third times the normal rate for time worked over forty-eight hours
per week, averaged over a thirty-day period.
Employees enumerated in items (c) to (f), inclusive, shall not
exceed in number fifteen percent of the total emploj^ees in any
operating individual plant.
4. No employer shall knowingl}' engage an}' emplo3'ee for any
time which when totnk-d with that already performed for other
employers exceeds the maximum i)crmitted liercin.
450
Article IV — Wages
1. No employee shall be paid less than thirty-seTen cents per hour
in the North and twenty-seven cents per hour in the South.
2. This paragraph establishes a guaranteed minimum rate of
hourly pay regardless of whether the employee is compensated on
the basis of a time rate or of a piece-work performance for the hours
worked in any pay period.
3. To the extent practicable, 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. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
5. Accounting, clerical, or office employees shall not be paid less
than the rate of $16.00 per week in any city of 500,000 population
or over, or in the immediate trade area of such city; and not less
than $15.50 per week in any city between 100,000 and 500,000 popu-
lation, or in the immediate trade area of such city ; and not less than
$15.00 per week in any city between 10,000 and 100,000 population,
or in the immediate trade area of such city ; and not less than $14.00
per week in any city under 10,000 population.
6. Watchmen, in either the plant or the office, shall not receive
less than $15.00 per week.
7. Persons whose earning capacity is limited because of physical
or mental defect, age or other infirmity may be employed on light
work at not less than 80 percent of the minimum wage set by this
Code; provided, however, that the total number of such employees
in any one plant shall not exceed five percent of the total of such
plant. . 1 n 1 •
8. All wages shall be paid at least twice a month, and all salaries
at least once a month, in cash or by negotiable check. Those wages
shall be free from any deductions for payments for pensions, insur-
ance or sick benefits other than those voluntarily authorized by the
wage earners or required by State laws.
9. No employer shall, either in person or through agents, solicit
or accept rebates, directly or indirectly, on such wages or any other
consideration of value except work for such wages, and neither shall
he extend favors or any other consideration to any person for the
purpose of influencing the wages or working conditions of his
employees.
Article V — General Labor Provisions
1. No person under sixteen years of age shall be employed in the
■Industry, nor any one under eighteen years of age at operations or
occupations hazardous in nature or detrimental to health. Each
member of the Industry shall submit to the Code Authority before
January 1, 1934, a list of such operations or occupations. In any
State an employer shall be deemed to have complied with the provi-
sions of this paragraph 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.
451
2. 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.
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 orgajiization of his own
clioosing; and
4. Emplo^^ers shall comply with the maximum hours of labor, min-
imum rates of pa}', 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 regu-
lating the age of employees, wages, hours of work, or health, fire
protection, or general working conditions than under this Code.
6. Employers shall not reclassify employees or duties or occupa-
tions performed by employees so as to defeat the purposes of the Act.
7. Each emploj^er shall post in his plant the wage, hour, and labor
provisions of this Code.
8. No employee shall be required as a condition of employment
to trade at any store specified by the emploj^er.
Article VI — Administration
1. The Industry shall be divided into four Regions, namely, the
Eastern Region, the JMiddle-Western Region, the Southern Region,
and the Pacific Coast Region, respectively, consisting of the follow-
ing States :
(a) Eastern Region. — Maine, New Hampshire, Vermont, Massa-
chusetts, Rhode Island, Connecticut, New York, Pennsylvania, New
Jersey, Delaware, Maryland, District of Columbia, Virginia, West
Virginia, Ohio, Michigan, that part of Indiana east of the 86th
principal meridian, and insular possessions of the United States in
the Atlantic Ocean.
(b) Middle-Western Region. — That part of Indiana west of the
86th principal meridian, Illinois, Wisconsin, Minnesota, Iowa, Mis-
souri, that part of Kentucky south of the Louisville & Nashville
Railroad from Louisville to Winchester and west of the same rail-
road from Winchester south, Arkansas, Louisiana, North and South
Dakota, Nebraska, Kansas, Oklahoma, Texas, Montana, Wyoming,
Colorado, New Mexico, Utah, and Idaho.
(c) Southern Region. — North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, Tennessee, that part of Kentucky not
included in the Middle-Western Region, and the Panama Canal Zone.
(d) Pacifc Coast Region. — California, Oregon, Washington, Ne-
vada, Arizona, Alaska, and insular possessions of the United States
in the Pacific Ocean.
2. A Code Authority, to be elected by the Industry as hereinafter
])rovided, is hereby constituted as follows :
One member from the Eastern Region
One member from the Middle-Western Region
One member from the Southern Region
One member from the Pacific Coast Region
-'3785° 244-3 01 3^- —2
452
In addition, the Administrator may in his discretion appoint a
member, without vote, to represent the Administration, -without
expense to the Industry.
3. Regional Committees. A Regional Committee of not more
than eight members shall be elected in each Region by a majority vote
of the members of the Industry in the Region. Each Region shall,
as far as practicable, be self-governing under the provisions of this
Code, and, to that end, the Code Authority, subject to review and
modification by thg Administrator, shall delegate to each such Re-
gional Committee such of its authority, powers, and duties as may be
necessary therefor, including the right to submit to the Adminis-
trator recommendations for amendments to this Code, applicable
only to such Regions, within the scope of the powers granted under
this Code.
4. The members of the Industry in each Region shall convene, upon
notice as hereinafter provided, on or before the expiration of one
month from the effective date of this Code for the purpose of electing
one member of the Code Authority and also of electing their Regional
Committee.
5. District Committees. With the approval of its Regional Com-
mittee, an}^ group of members of the Industry may establish a sub-
division or district for the purposes of effectuating the policies of the
Act and administering the Code within its district. The members of
the Industry Avithin each such district shall appoint a District Com-
mittee as a governing body, such committee to have only such powers
as may be delegated to it by the Regional Committee of its respective
Region.
G, The Code Authority shall be charged with the administration of
this Code throughout the Industry and shall have the following
duties and powers to the extent permitted by the Act, subject to the
right of the Administrator on review to disapprove or modify any of
its orders, rules, regulations, or enactments :
(a) To obtain from all members of the Industry such sworn or
unsworn reports, either periodically or intermittently, on wages,
hours of labor, conditions of employment, number of employees, pro-
duction, shipments, sales, stocks, prices, and other matters pertinent
to the provisions or operation of this Code as it may specify or as the
Administrator may from time to time require.
(b) To make such surveys or investigations as may be necessary
to ascertain conditions in the Industr}^ and the observance or non-
observance of the provisions of this Code.
(c) To submit to the Administrator from time to time such recom-
mendations concerning : Methods and conditions of trading ; the
promotion of stabilization of the Industry; the prevention and elimi-
nation of unfair and destructive competitive prices and practices;
the gathering and dissemination of credit information so that, during
the period of emergency, available credit may be adapted to the
needs of the Industry considered as a whole and to the needs of
the small as well as the large units; dealing with any inequalities
that may in any way arise to endanger the stability of the Industry
and of production and employment; the regular auditing of statis-
tical reports, costs, prices, and terms to assure accuracy, prevent
misrepresentation, and verify the Industry's reports to the Adminis-
453
tration; siicli rules and regulations regarding standardization, uni-
form cost accounting, reduction of styles and sizes, and branding
of products as may serve the interests of the public and otherwise
effectuate the purposes of the Act ; and such other recommendations
as may from time to time appear necessary to effectuate the purposes
of Title I of the Act, such recommendations, when approved by the
Administrator, to have the same force and effect as any other pro-
vision of this Code.
(d) To regulate, subject to review, modification or disapproval
by the Administrator, the sale of discontinued lines, oft'-grade ma-
terials, and inventories which must be converted into cash to meet
emergency needs, at or below the cost of production, in special cases
if the member files adequate proof of necessity, a detailed record
of such surplus stocks to'be filed with and checked by the respective
regional or district committees at the time of application for such
approval.
(e) To receive complaints of violations of this Code, make inves-
tigations thereof, provide hearings thereon, and adjust such com-
plaints, and bring to the attention of the Administrator for prosecu-
tion, recommendations, and other action concerning unadjusted
violations.
(f ) To coordinate the administration of this Code with such other
codes, if any. as may be related to the Inciustry, or any subdivision
thereof, ancl to delegate to any other administrative authority, with
the approval of the Administrator, such powers as will promote
joint and harmonious actions upon matters of common interest.
7. Each association, as herein defined, or any other trade or indus-
trial association directly or indirectly participating in the selection
or activities of the Code Authority shall :
(a) Impose no inequitable restrictions on membership; 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 membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
8. 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
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
Authority.
9. Any decision, rule, regulation, order, or finding made, or course
of action followed, pursuant to this Code, may be canceled or modi-
fied by the Administrator whenever he shall determine such action
by him to be necessary to effectuate the provisions of Title I of the
Act.
10. Members of the Industry shall be entitled to particijiate in,
and share the benefits of, the activities of the Code Authority, and
to participate in the selection of the members tliereof, by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. Tlie
454
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority, or Regional or District Committees,
subject to review by the Administrator, on tlie basis of volume of
business and/or such other factors as may be deemed equitable to be
taken into consideration. Where Regional or District Committees
collect such funds, provision shall be made for the payment of a
proportionate share of the Code Authority's expense as apportioned
by the Code Authority.
11. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to governmental agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act.
12. When the Administrator or his duly authorized agent, or the
Code Authority or its agents, or the Regional Committee or the
District Connnittees shall obtain confidential information, it shall
be assembled by a disinterested neutral party who shall keep it con-
fidential except that it may be disclosed upon the lawful demand of
either House of Congress or lawfid committees thereof, or upon de-
mand of any court. Totals or subtotals of any data may be dis-
closed publicly, providing no individual enterprise supplying such
information be revealed. Information obtained in the course of in-
vestigation shall not be disclosed to any members, including those on
the Code Authority, unless such disclosure shall be required by tlie
Administrator.
Article VII — Trade Practices
The folloAving practices constitute unfair methods of competition
for members of the Industry and are prohibited :
1. The false marking or branding of any product of the Industry
which has the tendency to mislead or deceive customers or pro-
spective customers, whether as to the grade, quality, quantity, sub-
stance, character, nature, origin, size, finish, or preparation of any
product of the Industry ; or for a manufacturer to ship his products
under the name of any nonmanufacturing buyer; or delivering of a
higher priced product when a lower priced product was sold and/or
charged to the customer.
2. 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 terms, prices,
or credit terms, values, policies, or services of any member of the
Industry, or making misleading guarantees as regards the perform-
ance of a manufacturer's products or the structures in wdiich they
are used, or making any guarantees other than standard guarantees
as adopted by manufacturers of their respective regions or districts,
or otherwise having the tendency or capacity to mislead or deceive
customers or prospective customers, or for the purpose of gaining an
unfair competitive advantage.
3. Directly or indirectly to give, or permit to be given, or offer to
give, money or anything else of value to agents, employees, or repre-
sentatives of customers or prospective customers, or to agents, em-
ployees, or representatives of competitors' customers or prospective
455
customers, without the knowledge of their emploA^ers or principals,
as an inducement to influence their employers or principals to pur-
chase or contract to purchase from the makers of such gift or offers
or to influence such employers or principals to refrain from dealing
or contracting to deal with competitors.
4. Maliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his cus-
tomer or source of supply, or interfering with or obstructing the per-
formance of any such contractual duties or services; solicitation by
a manufacturer or his representative, directly or indirectly, of an
order for his product with the knowledge that a signed order from
one in authority has previously been given a competitor, or the
renewal of sales effort by a competitor on an operation after the
seller receiving the order has commenced delivery and where differ-
ences have arisen resulting in a cessation of delivery, unless the said
seller has had a reasonable opportunity to adjust such differences;
or cancellation or repudiation of contracts by either the buyer or
seller of vitrified clay sewer pipe, except for legal cause, or in accord-
ance with express terms of the contract, or by mutual consent.
5. The secret payment or allowance of rebates, refunds, commis-
sions, 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.
6. 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, unless
prices published make clear that such prizes, premiums, or gifts will
be given.
7. The defamation of competitors by falsely imputing to them dis-
honorable conduct, inability to perform contracts, questionable credit
standing, or by other false representations or by the false disparage-
ment of the grade or quality of their goods.
8. The publishing or circularizing of threats of suits for infringe-
ment 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.
9. 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.
10. The making of installed or lump-sum prices by a manufac-
turer or his agent, thereby concealing the unit price of the items em-
braced therein; or guaranteeing that any specific quantities will do
the job which are actually insufficient for the purpose ; or the making
of any bid when its acceptance is contingent upon the acceptance of a
bid on any other clay products or other building material or com-
modities.
11. The shipment of vitrified clay sewer pipe on consignment.
12. The practice of accepting, in payment for vitrified clay sewer
pipe, securities such as mortgages, bonds, stocks, or tax bills or cer-
tificates, except at current marketable cash value.
456
13. Furnishing any contractor, subcontractor, or agent with a cer-
tified bidding check or bidding bond ; or directly or indirectly financ-
ing such buyers by prepaying freight or otherwise.
14. Delivering by truck or otherwise of less than carload lots of
vitrified clay sewer pipe at carload prices, or delivering carload
quantities by truck or otherwise f.o.b. site or f.o.b. dealer's yard at
the same or at a lower price than carloads f.o.b. nearest station or
spur, except when specifically approved by the respective Regional
or District Committees.
15. The Regional Committees may make and administer plans,
subject to review and modification or disapproval thereof by the Ad-
ministrator, whereby contractors', dealers', or jobbers' discounts will
not be extended to those who do not perform the functions of con-
tractors, dealers, or jobbers, and for the regulation of commission
salesmen.
16. Selling below allowable cost, as hereinafter provided, unless
such selling below allowable cost is approved in writing by the
proper Regional or District Committee in advance of such sale.
17. Selling or offering for sale for delivery in the Industry mem-
ber's own Region, or any other Region or District, of any vitrified
clay sewer pipe at less than the producer's allowable cost, plus trans-
portation charged to points of delivery, for the product involved as
determined in accordance with the principles described in Article
VIII; provided, however, that any producer may sell at below his
allowable cost to meet the competition by any other producer whose
price is not less than his allowable cost.
18. To fail to comply with any or all of the provisions of Article
XI and XIII of this Code.
19. Nothing in this Code shall limit the effect of any adjudication
by the courts or any holding 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 of this Code.
Article VIII — Selling Below Cost
1. Allowable cost in each respective Region or District shall in-
clude the following elements:
Direct labor.
Materials, at cost.
Proportionate share of indirect expenses and fixed charges.
Indirect expenses are to include depreciation and/or depletion,
computed according to maximum rates allowed to the respective
members of the Industry by Federal Income Tax Procedure, but to
exclude the following items:
Any reserves other than for depreciation and/or depletion.
Interest paid.
Executive salaries in excess of $10,000 per annum for each
executive.
Salesmen's salaries and expenses.
Commissions.
Advertising.
Other selling cxj~;enses.
457
The proportionate part of indirect expenses and fixed charges to
be included in allowable cost shall be determined on the following
basis :
Each member of the Industry shall report to his Regional Com-
mittee the following information covering business transacted in
the years 1927 to 1932, inclusive, in separate totals for each year:
Sales in tons and amounts.
Production in tons.
Direct labor.
Material costs.
Indirect expenses and fixed charges, exclusive of exceptiona
enumerated above.
From these reports there shall be calculated the average tonnage
produced, the average cost of production per ton, and the average
indirect expenses and fixed charges per ton produced, as defined
above, for the one-third part of the Industry which had the lowest
cost of production per ton for the six-year period; and the resulting
average per ton of indirect expenses and fixed charges shall become
the standard charge of burden to be included in production costs for
the respective Regions or Districts by every producer covered by this
Code, for the purpose of determining whether or not sales or offers
of sale are made below cost.
In the case of any complaint by an interested party that a mem-
ber of the Industry is violating the foregoing cost provision, the
burden of proof of compliance shall rest upon the accused member.
If the Code Authority or the Administrator is not satisfied by the
proof furnished by the defendant member, the matter shall be re-
ferred to the Federal Trade Commission which may audit the de-
fendant's cost accounting and otherwise review his allocation of
burden; and the report of that Commission shall be final regarding
the costs of the defendant member.
2. For the purpose of adjusting costs in the future in the respec-
tive Regions or Districts, a uniform accounting and cost-finding basis
shall be formulated for the Industry by the Code Authorit}- and
applied by each Regional Committee as hereinabove provided, sub-
ject to review and modification or disapproval by the Administrator.
Article IX — Modificatign
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 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.
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.
458
Article X — Standardization
Vitrified clay sewer pipe should be standardized for the elimination
of unnecessary cost, waste, and loss, and no change in dimensions
of a kind likely to upset Industry standards shall be made by any
manufacturer until after he has filed notice of his intention thereto
in the office of his Regional Committee. The standards of the Ameri-
can Society for Testing Materials can be a scientific guide with
reference to sizes and strength, absorption, and other physical
qualities.
Article XI — Terms or Sale, and Credits
1. Tiie Regional Committee may establish standard terms of sale
and cash discounts and credit practices which shall be uniform in
each respective Region and which shall be binding upon all pro-
ducers, subject to review by the Code Authority and the Admin-
istrator.
2. All quotations and contracts for the sale of vitrified clay sewer
pipe shall be in writing and shall contain a definite statement of
prices, quantities, terms of payment, time and place of deliverj'^, and
all other items necessary to form a complete understanding.
3. The terms of sale of each member of the Industry, including
credit terms, shall be uniform in the Region to all purchasers of the
same class, and shall be uniformly enforced, provided that nothing
herein contained shall prevent any member of the Industry from
refusing credit to any purchaser or requiring special terms of pay-
ment when in his judgment such refusal or requirement is necessary
for the adequate protection of the account.
4. Members of the Industry may exchange credit information for
the purpose of eliminating losses to the Industry, and failure to give
truthfully such credit information is an unfair method of com-
petition.
Article XII — 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 XIII — Price
1. The Regional or District Committee may require that each mem-
ber of the Region or District shall file with the Committee's Secre-
tary a net price and/or a price list or discount sheet individually
prepared by him showing his current prices and/or prices and dis-
counts, including all special discounts, freight allowances, and t^rms
of payment. The Secretary shall immediately send copies or revi-
sions thereof to all other members of the Industry in the Region or
District.
2. Each member of the Industry shall be free to change his pub-
lished prices or conditions and terms of sale from time to time as
459
conditions warrant, but he shall file with his Regional or District
Committee at least five (5) days prior to the effective date thereof
such new, amended, or revised prices or terms or conditions of sale
before making any quotation, offering for sale, or sale in accordance
with such revision; except that the time required for prior filing
may be shortened to afford opportunity to meet a newly published
price, or to meet legitimate competition from competitive materials
other than vitrified clay sewer pipe. Changes of prices or conditions
and terms of sale shall be deemed to be filed with Regional or Dis-
trict Committees, as hereinabove provided, when an acknowledgment
b}' wire, by telegraph, or by mail shall have be«n issued by the
secretary of such Regional or District Committees.
3. No member of the Industry shall sell, directly or indirectly
through an affiliated company or otherwise, by any means whatever,
any of the products of the Industry at a price lower, or at discounts
greater, or on more favorable terms of payment than those provided
in his current net price and/or price lists and discount sheets, so filed
with the Committee as aforesaid; provided, however, that at any time
any member of the Industry may meet the lawful price of any com-
petitor for products of an equal grade or quality. Any such meeting
of a lower price must be reported at once to the Committee. An
"Affiliated " company for the purpose of this section means a com-
pany the majority of whose voting stock is owned or controlled by
a member of the Industry.
Article XIV
Any notice, demand, or request required or permitted to be given
to or made on any member of the Industry shall be sufficiently given
if mailed, postage prepaid, addressed to such member at the address
of such member on me with the Regional Committee. Notice of
meetings shall be issued by the Secretary of each respective associa-
tion at least seven days prior to the dates thereof. A waiver in
writing signed b}^ any member of any such notice, demand, or request
and delivered to the Regional Com.mittee shall be deemed to be the
equivalent of a notice, demand, or request duly given or made,
whether or not such waiver was signed and delivered at the time
such notice, demand, or request was required or permitted to be given
or made. Any member of the Industry may cast his vote on any sub-
ject by written proxy.
Article XV
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 in-
creases, except such as may be required to meet individual cost,
should be delayed. But when made such increases should, so far as
possible, be limited to actual additional increases in sellers' costs.
460
Article XVI
This Code shall become effective on the second Monday after its
approval by the President, and such date shall be known as the
" effective date " of this Code.
Approved Code No. 138
Registry No. 1013-05
o
Approved Code No. 137
CODE OF FAIR COMPETITION
FOR THE
WARM AIR FURNACE MANUFACTURING INDUSTRY
As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance witb 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 Warm Air Furnace Manufacturing
Industry, and hearings having been held thereon and the Admin-
istrator having rendered his report containing an analysis of the
said code of fair competition together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said code of fair competition complies in all respects with
the pertinent provisions of title I of said act and that the require-
ments of clauses (1) and (2) of subsection (a) of section 3 of the
said act have been met.
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and 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.
The White House,
Novemher 27, 1933.
Approval recommended :
Hugh S. Johnson,
Administrator.
(461)
23786" 244-105 33
no^tember 15, 1933.
The President,
The 'White House.
Sir: This is a report on the Code of Fair Competition for the
Warm Air Furnace Manufacturing Industry, and on the public
hearing conducted thereon in Washington, D.C, on October 23,
1933, in accordance with the provisions of the National Industrial
Recovery Act.
Provisions of This Code as to Wages and Hours
All employees, except office employees, shall be paid a minimum
rate of forty cents per hour in the North and thirty cents per hour
in the South.
Learners shall be paid eighty percent of the above minimum, but
shall not exceed in number nve percent of the total number of
such employees.
Office employees shall be paid a minimum of fifteen dollars per
■week except that office boys or girls, not to exceed one to every
ten office employees, shall be paid at least eighty percent of the
above rates.
Old and disabled employees, not exceeding in number five percent
of an employer's total number, shall be paid at least eighty percent
of the above minimum rates.
Forty hours is the maximum number of working hours for any
week and eight hours for any day. At certain intervals forty-eight
hours in one week is permissible.
A tolerance of ten percent is allowed for maintenance and repair
workers.
Watchmen shall not be employed in excess of fifty-six hours in any
one week.
All emploj'ees, except office employees, shall be paid at the rate of
time and one half for hours in excess of the normal daily or weekly
maximum.
Office employees shall not be employed in excess of forty hours a
week or more than forty-eight hours in any one week.
Employers shall equitably adjust the compensation of employees
receiving more than the minimum rates of pay provided and report
readjustments to the Code Authority.
Economic Effects
This Industry depends chiefly upon new residential building for
consumption of its products ordinarily but now is largely dependent
upon replacement demand. Between 1929 and 1931 there has been
a decline of almost forty percent in the value of this Industry's
products.
(462)
463
Of the two hundred and six of this Industry's concerns operating
in 1929, only seventy-six now remain. This Code will not therefore
effect the reabsorption of all former employees but will increase
the number of employees over that of September 1933 by twenty-two
percent.
A substantial increase in employment has occurred in this Industry
since January 1, 1933, due partially to seasonal variations but prin-
cipally because some plants were operating under the President's
Reemployment Agreement.
This Code provides for the upward adjustment of this Industry's
employees' wages to the extent practicable.
Findings
The Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertinent j)rovisions 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
Warm Air Furnace 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 approved.
Res^Dectfully,
Hugh S. Johnson,
A dministrator.
CODE OF FAIR COMPETITION
FOR THE
WARM AIR FURNACE MANUFACTURING INDUSTRY
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 Warm Air Furnace Manufacturing In-
dustry, and upon approval by the President, shall be the standard of
fair competition for this Industry, and binding upon every member
thereof.
Article I — Definitions
(a) "The Industry" means and includes the business of manu-
facturing and selling by manufacturers of cast iron or steel warm
air heating furnaces in the United States.
(b) " National Industrial Recovery Act " means the National
Industrial Recovery Act approved by the President on June 16, 1933.
^c) "Act " means National Industrial Recovery Act.
(d) "Institute" means the Warm Air Furnace Manufacturers'
Institute, a Trade Association.
(e) 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.
(f ) The term " Employer " as used herein includes anyone by
whom such an employee is so engaged.
(g) " Effective Date " means the second Monday after this Code
is duly approved by the President of the United States.
(h) "Jobber" means anyone whose sole business is to sell to
dealers, heating contractors, and/or installers, and who does not per-
form, directly or indirectly, the functions of a dealer, heating con-
tractor, or installer. If any application of this definition should
work hardship upon any member of the Industry, or any customer,
such member of the Industry, or such customer, may apply to the
Code Authority, which shall have power to grant such exemption
as justice may require.
(i) "Dealer " and/or "Heating Contractor ", and/or " Installer "
means anyone who buys the products of the Industry for resale to
the consumer and/or installation in connection with such sale. If
any application of this definition should work hardship upon any
member of the Industry, or any customer, such member of the In-
dustry or customer may appeal to the Code Authority, which shall
have power to grant such exemption as justice may require.
(j) The term "Member of the Industry " means anyone engaged
in the Industry, whether as an employer or on his own behalf.
Article II — Conditions of Employment
Section 1. (a) Employees shall have the right to organize and
bargain collectively through representatives of their own choosing,
(464)
465
and shall be free from the interference, restraint, or coercion of
employers of labor, or their agents, in the designation of such rep-
resentatives or in self-organization or in other concerted activities
for the purpose of collective bargaining or other mutual aid or pro-
tection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
(d) Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
(e) Each employer shall post in conspicuous places full copies
of this Code.
Sec. 2. Minivium Wages. — On and after the effective date the
minimum wage which shall be paid by employers in the Industry
to employees other than office employees shall be at the following
rates :
(a) In all States of the United States, except Tennessee, North
Carolina, South Carolina, Georgia, Alabama, Florida, Mississippi,
and Louisiana, the minimum rate of pay shall be not less than forty
(40) cents per hour.
(b) In the States excepted in the above paragraph (a) the mini-
mum rate of pay shall be not to exceed ten (10) cents per hour less
than that prescribed for other States.
(c) The minimum rate of pay for learners shall not be less than
eighty percent (80%) of the minimum wage provided herein, and
the total number of such learners shall not exceed in any calendar
month five (5) percent of the total factory employees of any em-
ployer, provided that no one shall be employed in the capacity of
learner who has been employed within the industry for one year,
whether by one or more employers.
(d) The minimum wage which shall be paid by any employer to
office employees, except employees covered in Section 2, paragraph
(e) of this Article II, shall not be less than at the rate of fifteen (15)
dollars per week.
Office boys and girls shall be exempt from the foregoing provisions
of this paragraph (d), provided they are paid at the rate of not less
than eighty (80) percent of the minimum wage provided in this para-
graph (d) for office employees, and provided that they shall not
exceed in number more than one to every ten office employees.
(e) Old and partially disabled employees shall in no case be paid
less than eighty (80) percent of the within minimum wage rates of
pay, and provided that the total of such employees shall not exceed
live (5) percent of the total number of employees employed by any
employer.
Sec. 3. Maximum Hours. — No employee, except office employees,
shall be employed in excess of forty (40) hours in any one week, or
eight (8) hours in any twenty-four (24) hour period, except during
any twelve (12) weeks in a twelve (12) months' period when em-
ployees may be employed not more than forty-eight (48) hours
during any one (1) week, but such limitations shall not apply to:
466
(a) Employees engaged solely at maintenance and repair work
and shipping crews, firemen, engineers, and electricians, as to whom
there shall be a tolerance of ten (10) percent.
(b) Employees engaged in an executive or supervisory capacity
receiving thirty-five (35) dollars or more per week, and outside
salesmen.
(c) Watchmen, who may be employed not more than fifty-six
(56) hours in any one week.
(d) All employees, except office employees and except employees
covered by Paragraphs (a) and (b) of this Section 3, who work
more than eight (8) hours in any twenty-four (24) hours period,
or more than forty (40) hours per week, shall be paid not less than
one and one half times their normal pay for said excess.
Sec. 4. (a) Office employees shall not be employed for more than
forty (40) hours in any one (1) week, nor eight (8) hours in any
twenty-four (24) hour period, subject to the following exceptions:
(b) During any twelve (12) weeks of any twelve (12) months'
period, such office employees may be employed for not more than
forty-eight (48) hours in any one (1) week; provided, however,
that the average of weekly hours of employment of any such em-
ployee over such twelve (12) months' period shall not exceed forty
(40) hours per week.
Sec. 5. (a) This Article establishes minimum rates of pay, regard-
less of whether the employee is compensated on the basis of a time
rate or on a piecework basis or otherwise.
(b) Equitable adjustment of compensation of employees receiving
more than the minimum rates of pay herein prescribed shall be made
by all emploj^ers, who have not heretofore made such adjustments,
and all employers shall within ninety (90) days after the approval
of this Code, report in full to the Code Authority concerning such
adjustments whether made prior to or subsequent to such approval.
Sec. 6. Employers in the Industry shall not employ any minor
under the age of sixteen (16) years, nor any person under the age of
eighteen (18) in any hazardous foundry operations. The Code
Authority shall submit to the Administrator within ninety (90) days
after the approval of this Code a list of such operations.
Sec. 7. (a) No employer shall engage any employee for any time.
which, when totaled with that already performed in the employ oi
another employer or employers, exceeds the maximum permitted
herein ; provided, that if any employee should be employed by more
than one employer for an aggregate period in excess of such maxi-
mum without the knowledge or connivance of any one of such em-
ployers, such employers shall not be deemed to have violated this
paragraph.
(b) An employer shall administer work in his charge so as to pro-
vide a maximum practicable continuity of employment for his
personnel.
(c) An employer shall make payment of all wages due in lawful
currency or by negotiable check, payable on demand. No deduc-
tions from such wages shall be made for pensions, insurance, or sick
benefits, but emplo3^ees may voluntarily make such payments.
467
(d) The employer shall accept no rebates, directly or indirectly
on wages, nor give anything of value or extend favors to any person
for the purpose of influencing rates of wages or working conditions
of his employees.
(e) Within each State this Code shall not supersede any laws of
such State which impose more stringent requirements on employers,
regulating the age of employees, wages, hours of work, health, or
general working conditions than under this Code.
Article III — Rules Covering Industry
Section 1. Unfair Trade Practice Rules. To accomplish the pur-
pose contemplated by the Act the following practices are hereby
declared to be unfair methods of competition.
(a) Giving or promising to give to any purchaser or prospective
purchaser of any product, or to any officer, employee, agent, or
representative of any such purchaser or prospective purchaser in
connection with any sale or prospective sale, any bribe, gratuity,
gift, or other payment or remuneration, directly or indirectly.
(b) Paying or allowing to be paid to any purchaser in connec-
tion with the sale of any product, any rebate, commission, credit,
discount, adjustment, or similar concession other than as specified
in the price sheet of the meml>er of the Industry published pursuant
to Article III, Section 2.
(c) Disseminating, publishing, or circulating any false or mis-
leading information relative to any product or price for any prod-
uct, of any member of the Industry, or the credit standing or ability
of any member of the Industry to perform any work or produce any
product, or to the conditions of employment among the employees of
any Member.
(d) 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.
(e) Making false representations or falsely marking or branding
products of the Industry for the purpose or with the effect oi
misleading or deceiving purchasers.
(f) Stating in the invoice of any product, as the date thereof, a
date later than the date of shipment of such product, or including
in any invoice any product shipped on a date earlier than the date
of such invoice for the purpose of evading the Code.
(g) Accepting orders for large quantities of products of the In-
dustry, and then making small quantity deliveries at the large quan-
tity price, for the purpose and with the effect of unjustly discriminat-
ing between different purchasers.
(h) Granting quantity discounts which have not been earned
under the terms of the published price schedule.
(i) Making any allowances for advertising in any form to dealers
or jobbers except pursuant to specific provision therefor in the mem-
ber's price sheets, published pursuant to Section 2 of this Article III,
so that such allowance is available to all customers in the same class.
(j) Making shipments to dealers on consignment, unless such
terms are offered publicly on the duly published price list of the
member of the Industry and are available to all dealers alike.
468
(k) Accepting orders from the classes of trade herein defined, not
specified for immediate shipment, unless such orders shall be subject
to the prices and terms in effect at the time shipment is made.
(1) Selling products of the Industry at a net realized price below
the member's own individual cost; provided, however, that nothing
herein contained shall prevent any member of the Industry from
meeting the price of any competitor who is not himself selling below
cost. For the purpose of determining cost, the G)de Authority shall
prepare and recommend to the Administrator a uniform system of
cost accounting. Upon approval thereof by the Administrator, each
member of the Industry shall immediately proceed to adopt such
system of cost accounting in the determination of his own individual
costs. If any member of the Industry should find it a hardship to
adopt such cost accounting system, such member may appeal to the
Code Authority, which shall have the power to permit such modi-
fications or grant such exemptions as justice may require.
Sec. 2. Open Price Policy. — (a) An open price policy shall be
maintained at all times by all members of the Industry and each
member shall issue price lists applying to any products offered for
sale to jobbers, dealers, heating contractors and/or installers, as
herein defined. These price lists shall be dated, as of date of issue,
and shall contain the then prevailing prices, discounts and terms of
sale applying, as well as all other conditions of sale, and nothing in
addition shall be allowed. Each member's price list shall remain in
effect until such time as the member shall make any change in prices,
terms, or any conditions of sale, in which event the member shall im-
mediately issue a new price list and send it to the Code Authority
and to all members of the Industry, and to its jobbers, dealers, heat-
ing contractors and/or installers.
(b) No member of the Industry shall make any sale of any prod-
uct at a lower price or on terms or conditions more favorable than
provided in his price lists, issued as aforesaid, nor extend to any pur-
chaser prices or terms more favorable than to any other purchaser
of the same trade class.
(c) Many members of the Industry sell part of their products
direct to dealers and/or heating contractors, and the balance of their
products through jobbers. In order to prevent indirect evasion of
the provisions of this Section 2 by such members, it is hereby pro-
vided that no such member shall sell any product to or through any
jobber who is selling such product to any dealer and/or heating con-
tractor at a lower price or on terms more favorable than the prices
and terms provided in the price list of such member for sales by
such member direct to dealers and/or heating contractors.
(d) Nothing in this Code shall limit the effect of any adjudication
by the courts or holding by the Federal Trade Commission on com-
plaint, finding, and order, that any practice or method is unfair,
provided that such adjudication or holding is not inconsistent with
any provision of the Act or of this Code.
Article IV — Administration
Section 1. The Code Authority of the Industry. — To cooperate
with the Administrator in the administration of this Code, there
469
shall be a Code Authority consisting ox seven representatives of the
Industry elected by a fair method of selection by the Industry, sub-
ject to review by the Administrator.
To effectuate further the policies of the National Industrial Re-
covery Act the Code Authority is hereby designated to cooperate
with the Administrator as a planning and fair-practice agency for
the Industry.
The President or the Administrator may appoint not more than
three nonvoting members of such Code Authority, without expense to
the Industry. Said Code Authority shall, from time to time, present
to the Administrator recommendations, based on conditions in the
Industry as they may develop, which will tend to effectuate the
operations of the provisions of this Code and the policy of the Na-
tional Industrial Recovery Act.
Any act or decision of the Code Authority shall be subject to
the right of the Administrator upon review to disapprove or modify
such act or decision. In the event of omission by the Code Authority
to act in any case in which action should be taken by it, anj'one
affected by such omission to act may appeal to the Administrator
who shall have power to take the necessary action.
The Code Authority shall, when requested by the Administrator
or his representative, cause to be obtained ivom the members of the
Industry statistical data and information pertinent to the operation
of this Code, in such form and manner as not to disclose the indi-
vidual figures and data of the respective members of the Industry,
that the Administrator shall require and as may be necessarj'^ to
enforce and effectuate the provisions of this Code and the j^olicy
of the Act.
The Code Authority shall cause to be made available to the Admin-
istrator such reports, data, and information as may be required by
the Administrator and which will assist in keeping the Adminis-
trator or any representative designated by him ^ully advised con-
cerning such matters and confer with the Administrator or his repre-
sentative from time to time to consider and study any recommenda-
tions presented by such persons on behalf of the National Recovery
Administration or any member of the Industry regarding the opera-
tion, observance, and administration of this Code.
In addition to the information to be submitted to the Code Author-
ity, there shall be furnished to government agencies such statistical
data as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act.
The Code Authority may delegate any of its duties to such agen-
cies as it may appoint, which would not involve the disclosure of the
individual data or information of any member of the Industry,
except as otherwise herein permitted or required to be disclosed,
provided, that such agencies shall be under the supervision of the
Code Authority.
Sec. 2. The Warm Air Furnace Manufacturers' Institute of Co-
lumbus, Ohio, is hereby constituted an agency to receive reports as
herein above provided. The Institute shall provide for the receiving
and holding of such reports in confidence. Such re])orts shall be in
such form, and shall be furnished at such intervals, as shall be pre-
scribed by the Code Authority and shall contain such information
470
relevant to tlie purposes of this Code as sliall be prescribed by the
Code Authority from time to time including information with re-
spect to the following subjects:
(a) Employment, hours, wages, and wage rates,
^b) Production and billing.
(c) Financial and cost data.
(d) Activity, purchases, and sales.
Sec. 3. The Warm Air Furnace Manufacturers' Institute is or-
ganized to enable the Warm Air Furnace Manufacturing Industry to
subscribe to the provisions of the Act, and places no inequitable
restrictions on membership, which is open to all employers engaged
in the Industry. There shall be no future amendments to " the
Standard Code and By-Laws of the Warm Air Furnace Manufac-
turers' Institute ", which will tend to make the Institute not truly
representative of and/or which shall impose any inequitable restric-
tions on membership.
Article V
Section 1. By assenting to this Code, the applicants shall not be
deemed to have assented to any modification thereof.
Sec. 2. Ainenchnents. — (a^ Amendments to or revisions of this
Code may be proposed by tne Code Authority and when approved
in accordance with the provisions of the Act shall become binding
upon the Industry.
(b) This Code and all the provisions thereof are expressly made
subject to the right of the President of the United States, in accord-
ance 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 President of the United States to cancel or modify his
approval of this Code or any conditions imposed by him, upon his
approval thereof.
(c) 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 Authorit}^, 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.
Sec. 3. Provisions Against Monopoly. — None of the provisions of
this Code shall be construed or applied in such a way as to promote
a monopoly or monopolistic practices or to eliminate or oppress small
enterprises or discriminate against them.
Article VI
Any violation of this Code shall render the violator liable to the
penalties prescribed by Section 3 (f) of the Act, as follows:
471
" When a Code of Fair Competition has been approved or pre-
scribed by the President under this title any violation of any provi-
sion thereof in any transaction in or affecting interstate or foreign
commerce shall be a misdemeanor, and, upon conviction thereof, an
offender shall be fined not more than five hundred (500) dollars for
each offense, and each day such violation continues shall be deemed a
separate offense."
Article VII — T^ffectr-e Date
This Code shall become effective on the second Monday after the
approval by the President of the United States.
Approved Code No. 137.
Registry No. 1103-07.
EXHIBIT A
To the C3oDB Authority of the Warm Air Furnace Manufacturers' Institute,
50 West Broad Street, Columbus, Ohio.
Gbnti^emblv : The undersigned engaged in the business of manufacturing and
selling by manufacturers of cast iron or steel warm air heating furnaces in the
United States, as defined by the Code of Fair Competition for the Warm Air
Furnace Manufacturing Industry, hereby makes application for membership
In the Code and agrees that It will be subject to and will comply with all the
provisions of the Code of Fair Competition of such Industry as approved by
the President of the United States under the National Industrial Recovery Act.
Date
Name
Address
By
President.
(472)
o
Approved Code No. 138
CODE OF FAIR COMPETITION
FOR THE
ANTI-FRICTION BEARING INDUSTRY
As Approved on November 27, 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 Anti-Friction Bearing 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 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 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,
Administrator.
The White House,
Noveniber 27, 1933.
(473)
23787° 244- JOG-
November 14, 1933.
The President,
The 'White HoiLse.
Sir: This is a report on the Code of Fair Competition for the
Anti-Friction Bearing Industry in the United States, the hearing
having been conducted in Washington on October 24, 1933, in accord-
ance with the provisions of the National Industrial Recovery Act.
PROVISIONS FOR HOURS AND WAGES
Factory employees are limited by the Code to 40 hours per week
and 8 hours per day; except during periods of unusual production
demand, when 48 hours per week will be permitted in any 6 weeks
of any 6-month period, provided that the average over a 6-month
period is no more than 40 per week. These employees, as well as
those engaged in emergency maintenance and repair work (to whom
the hour limitation will not apply) will be paid time and a half
overtime rate for all hours worked in excess of 8 per day or 40 per
week. A tolerance of 10 percent over 40 hours per week is provided
for employees engaged in preparation, care, and maintenance, stock
and shipping clerks, and deliverymen.
The hour limitation will not apply to service men, traveling sales-
men, nor to persons in a managerial, executive, or supervisory capac-
ity receiving $35.00 per week or more. Watchmen will be limited to
56 hours per week. Accounting, clerical, service, sales, or other
salaried employees are limited to 40 hours per week averaged over
any one-month period, and 48 hours in any one week.
The minimum wage provided for factory workers will be 40 cents
per hour; except for work not requiring the strength and skill of
adult male labor, for which the minimum will be 35 cents an hour.
The minimum wage for office employees will be $15.00 per week in
cities of over 500,000 population and fractionally less in proportion
to the population in smaller cities down to $14.00 per week. The
minimum to office boys and girls, messengers, and old or partially
disabled employees will be not less than 80 percent of the rates for
their class of work. No distinction in rates will be made between
male and female employees in the same occupation.
CHILD LABOR
No person under 16 years will be employed in this Industry, and
not under 18 years in hazardous occupation,
ECONOMIC EFFECT OF CODE
The 40-hour week prescribed in this Code and adopted under the
President's Re-employment Agreement, in addition to improved busi-
ness, has increased the number of employees 46 percent since June
1933 when the hours averaged 46 per week.
(474)
475
After the application of the President's Re-employment Agree-
ment, the number of employees in the Industry increased to 13,700 in
August, or an increase of about 39 percent since June and 95 percent
since March 1933. In September the addition of 800 employees
brought the total to nearly 90 percent of the 1929 level.
The average wage rate for female employees in August 1933 was
about 28 cents; so that the minimum rate of 35 cents for female
labor prescribed by the Code is higher than the old average and
well above the previous minimum.
The automobile industry is the largest user of anti-friction bear-
ings. The bearings are also used in electric motors, machine tools,
bicycles, and for many other devices. In 1929 the total sales
amounted to $107,767,000. By 1932 sales had declined to $25,984,000,
or 76 percent. The ratio of sales to capacity in 1929 was approxi-
mately 98 percent ; and in 1932 this ratio had declined to 26 percent.
At present there are 26 concerns in 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
admission to membership therein and is truly representative of the
Anti-Friction Bearing 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
ANTI-FRICTION BEARING INDUSTRY
Article I — Pueposb
To effectuate tlie policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Anti-Friction Bearing Industry, and shall
be binding on every member thereof.
Article II — Definitions
The following words are used in this Code with the meanings
set forth below :
The term " the Industry " as used herein shall mean and include
the manufacturing or the sale by manufacturers or by directly owned
or controlled selling affiliates of manufacturers of anti-friction bear-
ings of the ball or roller type or any of their several parts such as:
races, balls, rollers, needle rollers, separators, or other parts included
in the assembly of an anti-friction bearing as an integral part
thereof.
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 nature or method of payment of his
compensation.
The term " employer " as used herein includes anyone by whom
such an employee is compensated or employed.
The term " member of the Industry " includes any individual, firm,
association, or corporation, or other person operating a plant or
plants in the United States for the production of anti-friction bear-
ings of the ball or roller type of any of their several parts, such as :
races, balls, rollers, needle rollers, separators, or other parts in-
cluded in the assembly of an anti-friction bearing as an integral part
thereof.
The term " member of the Code " includes any member of the
Industry who shall signify assent to this Code.
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.
The term " apprentice" as used herein means a person (usually a
minor) bound by indenture to serve an employer for a term of years
at a predetermined wage for the period of the indenture in order
to learn a trade, art, or profession.
The term "Act " means Title I of the National Industrial Recovery
Act.
The term " President " means the President of the United States.
(476)
477
The term "Administrator " means the National Industrial Recov-
ery Administrator.
The term "Administration " means the National Industrial Re-
covery Administration.
The term "Association " means the Anti-Friction Bearing Manu-
facturers' Association, a trade association having its office at tho
Hotel Biltmore, 43d Street and Madison Avenue, New York, New
York.
The term " Board of Directors " means the Board of Directors of
the Association,
Population for the purposes of this Code shall be determined by
reference to the 1930 Federal Census.
Article III — Hours
On and after the effective date of this Code :
(a) Factory employees, mechanical workers or artisans in the
Industry, except as hereinafter provided, shall not be employed in
excess of forty (40) hours per week, nor more than eight hours in
any 24-hour period; provided, however, that during any period
in which a concentrated demand upon any division of the Industry
shall place an unusual and temporary burden for production upon
its facilities, an employee of such division may be permitted to work
not more than forty-eight (48) hours per week in not more than
six (6) weeks of any six months' period; provided that such employee
shall be paid one and a half (li/^) times his normal rate of pay for
anj^ time worked in excess of eight (8) hours in any 24-hour period
or of forty (40) hours in any seven (7) days.
There shall be a tolerance of ten percent (10%) additional hours
over forty (40) hours per week or 8 hours in any twenty-four (24)
hour period for employees engaged in the preparation, care, and
maintenance of plant, machinery and production facilities; stock
and shipping clerks; and delivery emplo5^ees.
The maximum hours 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, but
in any such special cases one and one half times the normal rate
shall be paid for hours worked in excess of the normal hours herein
provided.
(b) The limitation as to hours of labor shall not apply to watch-
men, service men, commercial travelling salesmen, or to persons in
a managerial, executive or supervisory capacity who now receive
thirty-five ($35) dollars or more per week, provided, however, that
watchmen shall not work in excess of fifty-six (56) hours in any one
week.
(c) No employer shall work any accounting, clerical, service, or
sales employee more than forty (40) hours per week on a one month
average, nor more than forty-eight (48) hours in any one week.
(d) No employee shall work or knowingly be permitted to work
for a total number of hours in excess of the number of hours pre-
scribed for each week and day, whether employed by one or more
employers.
47S
Article IV — Wages
On and after the effective date of this Code :
(a) The minimum wage that shall be paid factory employees in
this Industry shall be forty (40) cents per hour; except that for light
repetitive work and such other light factory work as does not usually
require the strength and skill of adult male labor (provided that no
adult male labor shall be used for such work except at the rate above
provided), the minimum rate shall be thirty-five (35) cents per hour.
(b) No distinction in rates stipulated in this Article IV shall be
made between male and female employees where the same class of
work is performed, regardless of whether compensation is calcu-
lated on an hourly, w'eekly, monthly, or piecework basis; but in no
case shall the rate for adult male labor be less than forty (40) cents
per hour. In any operation where female employees displace adult
male employees such female employees shall receive at least the same
rate as the adult male employees they displace.
(c) All employees mentioned in paragraph (c) of Article III
shall be paid at the following rates in cities of the sizes listed below
and their immediate trade areas: Over 500,000 population, not less
than $15 per week ; between 250,000 and 500,000 population, not less
than $14.50 per week; under 250,000 population, not less than $14.00
per week.
(d) No employees of the classes mentioned in paragraph (c) of
Article III now receiving compensation at a rate in excess of the
minimum provided in paragraph (c) of this Article IV shall have
their compensation reduced on account of any reduction in the weekly
hours of emplo3^ment made to conform with the requirements of
paragraph (c) of Article III.
(e) This Article IV establishes a minimum rate of pay wdiich
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piecework, or other basis, and in no case
shall the rates of pay provided herein be decreased.
(/) A person whose earning capacity is limited because of age or
physical handicap may be employed on light work at a w^age below
the minimum established by this 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 hours as shall be stated in the certificate. Each employer
shall file with the Code Authority a list of all such persons employed
by him.
(g) The provisions in paragraphs (a) and (c) of this Article IV
relating to rates of wages shall not apply to apprentices, office boys
and girls, messengers, or to old or partially disabled employees, not
exceeding five percent (5%) in number of the employees of any
emplo^^er.
(h) The minimum wage that shall be paid to office boys and girls,
messengers, or to old or partially disabled employees by any member
of this Industry shall be not less than 80% of the minimum wage
stipulated in paragraph (c) of this Article IV.
(?') The wage rates for all operations and duties which are in
excess of the minimum, herein prescribed, shall be equitably adjusted
and in no case shall they be decreased. The action taken shall be
479
reported to the Code Autliority not later than sixtj^ (60) days after
this effective date and to the Administrator at his request.
(j) In determining his classification under this Code, each em-
ployee shall be entitled to claim the benefit of the classification of
occupation existing on June 16, 1933.
{k) Nothing in this Article IV 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 an}^ apprentice system established and maintained by
any employer, provided that such contract is filed with the Code
Authority, and subject to review by the Administrator.
Article V — Child Labor
No person under sixteen (16) years of age shall be employed in
the Industry. No person under eighteen (18) years of age shall be
employed at operations or occupations which are hazardous in nature
or dangerous to health. In any State an employer shall be deemed
to have complied with this provision as to age 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 show-
ing that the employee is of the required age.
Article VI — Administration
1. To 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 six members of the As-
sociation (no two of whom shall represent the same manufacturer),
appointed by the Board of Directors of the Association; and one
representative of members of the Industry who are not members of
the Association (providing they desire such representation, and
signify their willingness to pay their pro rata share of the cost of
administering this Code). In addition to the members of the Code
Authority appointed by members of the Industry, the Administrator
may appoint not more than three representatives of the Government.
Such Government Representatives are to be appointed for terms of
from six (6) months to one (1) year and if more than one (1) such
representative is appointed, their terms shall be so arranged that
they will not expire at the same time. The Board of Directors may
change its appointees from time to time as it may desire, and shall
advise the Administrator of any such changes. The appointee or
appointees of the Administrator shall act in an advisory capacity
only, and shall have no vote. The representative of the nonmembers
shall be elected by the nonmembers in any fair manner approved
by the Administrator.
(h) The Association shall impose no inequitable restrictions on
membership, and shall submit to the Administrator true copies of its
articles of association, and bylaws or regulations, and any amend-
ments 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.
480
(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.
(d) Any member of the Industry 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 of
and any revision or additions or supplements to this Code by assum-
ing his pro rata share of the cost and responsibility of administering
it, either by becoming a member of the Association and paying the
annual dues and assessments of the Association, or by paying to the
Code Authority his pro rata share of the costs of administering
the Code.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act and subject to review and dis-
approval or modification by the Administrator.
{a) To collect from members of the Industry, directly or through
an impartial agency, all data, reports, and statistics when and as
required by the President and/or the Administrator and/or their
agent or agents ; also to collect such data, reports, and statistics as
may be required from time to time by the Code Authority ; also to
collect and furnish to government agencies such statistical informa-
tion as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act. All such information shall be
confidential, except insofar as disclosure may be necessary for the
eflfective administration and enforcement of this Code. Such data
85 may be requested by the Administrator shall be made available
to him. Eeports submitted by the Code Authority to the President
or the Administrator shall be in the form prescribed or provided by
the President or the Administrator. Nothing in this subdivision
shall be considered as limiting the powers conferred on the President
or the Administrator by Title I of the Act.
(h) The Code Authority may require from the members of the
Industry reports regarding prices, or prices and discounts on closed
transactions, or such other pertinent data on closed transactions as
in its opinion may be necessary to effectuate Title I of the Act, and
may publish the same should such procedure be deemed advisable.
(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 regula-
tions issued thereunder.
(d) To hear complaints and attempt to adjust the same.
(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 har-
monious action on all matters of common interest, all with approval
of the Administrator.
(/) To study the trade practice provisions of Article VII hereof,
and the operation thereof, and make recommendations from time
to time to the Administrator which it deems desirable for modifica-
481
tion or addition thereto, which, upon the approval of the Admin-
istrator, after such hearing as he may prescribe, shall become a part
of this Code and have full force and effect as provisions hereof.
(g) To make rules and regulations necessary for the administra-
tion and enforcement of this Code, subject to the right of any affected
person to appeal to the Administrator.
(A) Any notice, demand, or request required or pertnilted to be
given to or to be made upon any member of the Industry shall be
sufficiently given if mailed, postage prepaid, addressed to such mem-
ber of the Industry, at his address on file with the Secretary of the
Code Authority.
Article VII — Unfair Practices
For the purpose of the Code, the following shall constitute unfair
practices :
(a) The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other misrepresentations with the tendency
and capacity to mislead and deceive purchasers or prospective
purchasers.
(6) Enticing away the employees of competitors with the purpose
and effect of unduly hampering, injuring, or embarrassing com-
petitors in their business. Nothing in this paragraph will prevent
any employee from offering his services to a competitor or prevent
any employer from employing an employee of another member of
the Industry when the initiative of such change of employment is
taken by the employee.
(<?) Paying or allowing to any purchaser in connection with the
sale of any product any secret rebate, commission, credit, discount,
adjustment, or similar concession, other than as specified in the
contract of sale.
{d) False disparagement of the weight, substance, strength, grade,
or quality of the goods of competitors, with the tendency and capacity
to mislead or deceive purchasers or prospective purchasers.
(e) To sell any product at a price or upon such terms or con-
ditions as will result in the customer paying for the goods received
less than cost, arrived at by a uniform system of accounting, or
uniform accounting formulas established or adopted by the Code
Authority to become effective not less than thirty (30) days after
adoption by the Code Authority. The Code Authority shall study
the operation of such system of accounting or accounting formulas
and may from time to time make such modifications therein as it
may deem necessary.
Any action taken by the Code Authority under this subsection
(e) shall be subject to review and disapproval by the Adminis-
trator.
(/) Selling or offering to sell any product with intent to deceive
purchasers or prospective purchasers as to the quantity, quality,
grade or substance of such product.
(g) Making or promising to any purchaser or prospective pur-
chaser of any product, or to any officer, emploj^ee, agent, or repre-
sentative of any such purchaser or prospective purchaser, any bribe,
482
gratuity, or other payment or remuneration, directly or indirectly,
for the purpose of influencing a sale.
(h) Any additional practices which shall be declared to be unfair
by an amendment to the Code.
(^) Using or employing any unfair practice hereinbefore specified
shall be deemed to be a violation of the Code, and any member of
the Industry who shall directly or indirectly, through any officer,
employee, agent, or representative, knowingly use or employ any
of such unfair practices, shall be guilty of a violation of the Code.
Article VIII — General Provisions
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self -organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(h) No employees 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) Emplo5^ers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
(d) All employers shall post complete copies of this Code in con-
spicuous places accessible to employees.
(e) This Code and all the provisions hereof are expressly made
subject to the ri^ht of the President, in accordance with the pro-
vision of subsection (6) 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 President
to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
(/) 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 general work-
ing conditions, than under this Code.
(g) 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 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 destruc-
tive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act consist-
ent with the provisions thereof.
(h) No provision in this Code shall be interpreted or applied in
such manner as to : {a) promote monopolies or monopolistic prac-
tices; (6) permit or encourage unfair competition; (c) eliminate
483
or oppress small enterprises; or {d) discriminate against small
enterprises.
(i) Nothing contained in this Code shall be deemed to constitute
the members of this Code partners for any purpose. None of the
members of the Code shall be liable in any manner to anyone for any
act of any other member of the Code, or for any act of the Code
Authority, the Association, the Board of Directors, or of any com-
mittee, or of any officer or employee appointed under the Code.
None of the members of the Code Authority or of the Association or
of any committee appointees under the Code shall be liable to anj^one
for any action or omission to act under the Code, except for his own
wilful misfeasance or nonfeasance.
(J) If any member of this Industry is also a member of any other
Industry, the provisions of this Code shall apply to and affect only
that part of the business of such member as is a part of the Industry
covered by this Code.
(k) This Code shall be in effect beginning on the tenth day after
its approval by the President and shall be binding upon all members
of the Industry.
Approved Code No. 188.
Registry No. 1318-1-02.
o
Approved Code No. 139
CODE OF FAIR COMPETITION
FOR THE
MACHINE TOOL AND EQUIPMENT DISTRIBUTING
TRADE
As Approved on November 27, 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 Machine Tool and Equipment Distribut-
ing Trade, and hearings having been held thereon and the i^dminis-
trator having rendered his report containing an analysis of the said
code of fair competition together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said code of fair competition complies in all respects with
the pertinent provisions of title I of said act and that the require-
ments of clauses (1) and (2) of subsection (a) of section 3 of the
said act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report and recommendations,
and findings of the Administrator and do order that the said code oi
fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
Administrator.
The White House,
November 27, 1933.
(485)
23788° 244-107 33
November 21, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Machine Tool and Equipment Distributing Trade, the hearing hav-
ing been held in Washington, October 27, 1933, in accordance with
the provisions of the National Industrial Recovery Act.
PROVISIONS ON HOUBS AND WAGES
Employees in the Trade are limited to a working day of 8 hours,
with 40 hours as a maximum work week. At inventory and other
peak periods employees may work 48 hours per week for not more
than 3 weeks in any six months' period, but the average shall not be
more than 40 hours per week in such six months' period. These
hours conform closely to the hours of the industries which are served
by this Trade.
The above limitations do not apply to persons in a managerial,
executive, or supervisory position regularly receiving more than
$35.00 per week, nor to outside salesmen. Employees engaged in
plant maintenance or as stock-room employees will receive time and
one third for all hours over 8 per day or 40 per week.
The majority of employees in the Trade are engaged in clerical
work and as outside salesmen. Their minimum rates of pay will be
not less than $15.00 per week in cities of over 500,000 population,
$14.50 per week in cities of from 250,000 to 500,000 population, and
$14.00 per week in cities of less than 250,000 population. Junior
employees will receive $2.00 less per week than these rates for the
first six months of their employment.
No person under 16 years of age will be employed in the Trade,
and no one under 18 will be engaged in any hazardous occupation.
ECONOMIC EFFECT OF THE CODE
This Trade distributes machine tools and equipment, the basic
tools of industiy. All resales are made on a commission basis, and
sales are usually based on engineering studies. While small in the
number of emploj^ees, it is important from the standpoint of being a
service Trade.
This Trade is not only subject to the usual fluctuations which take
place in the capital goods industries, but, in addition, has suffered
from the dej^ression because of the stoppage of buying of basic tools
by other industries. But because of the progress of invention in this
class of equipment during the period of stagnation, a rapid recovery
in bujdng is expected when general manufacturing plants increase
operation.
(4SG)
487
A total of 1,800 employees were engaged in the Trade in 1929, but
this total has dropped to approximately 800 at the beginning of
1933. The sales volume for the year 1929 was approximately $135,-
000,000 but this had declined until the sales during the first six
months of 1933 were at a rate only 10 percent of normal. The reten-
tion of 40 percent of the normal number of employees with only 10
percent of the volume of business has indicated a liberal sharing of
employment. The cut in normal working hours from an average of
more than 50 to the maximum of 40 prescribed in this Code should
mean an immediate rapid rise in employment with increased sales
volume.
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 T 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
Machine Tool and Equipment Distributing Trade; 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. Johnsox,
A dmims trator.
CODE OF FAIR COMPETITION
FOR THE
MACHINE TOOL AND EQUIPMENT DISTRIBUTING
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 Machine Tool and Equipment Distribut-
ing Trade, and, upon approval by the President, shall be the stand-
ard of Fair Competition for this Trade, and shall be binding upon
every member thereof.
Article II — Definitions
Section 1. The term "Act " as used herein means Title I of tha
National Industrial Recovery Act.
Sec. 2. The term "Administrator " as used herein means the Ad-
ministrator of the Act.
Sec. 3. The term "Association " as used herein means the Asso«
ciated Machine Tool Dealers.
Sec. 4. The term " Machine Tool and Equipment Distributing
Trade " as used herein includes for resale the warehousing, selling,
and distribution of new machine tools and attachments, equipment
and parts thereof, including such jigs and fixtures, die heads, and
small tools and accessories as are now, or may hereafter be made
by manufacturers of machine tools for machine tools of their own
manufacture.
Sec. 5. The term "machine tools and eq^uipment" as used herein
means power driven metal working machines which perform gen-
erally' the function of changing the form of metal by the use of one
or more cutting tools, abrasives, forming dies, rolls, etc., including
all attachments, parts, jigs and fixtures, die heads, and such small
tools and accessories as are now, or may hereafter be made by manu-
facturers of machine tools for machine tools of their own manu-
facture.
Sec. 6. Distributors in the Machine Tool and Equipment Distrib-
uting Trade shall be classified as :
" Machine tool dealer " is one who purchases new machine tools
and equipment for resale to industrial users, public service corpora-
tions, educational institutions, government or political subdivisions
and other trade outlets ; maintams an adequate selling organization
and accounting system, and performs all other functions pertaining
to the sale and distribution of machine tools and equipment for same,
(b) " Manufacturers' agent " is one who sells new machine tools
and equipment to industrial users, public service corporations,
educational institutions, government or political subdivisions and
other trade outlets for the account of one or more machine tool
manufacturers.
(488)
489
(c) " Importer of machine tools " is one who imports machine
tools and equipment for same and sells to industrial users, public
service corporations, educational institutions, government or political
subdivisions and other trade outlets.
Sec. 7. The term " employee " as used herein means anyone
engaged in the Trade in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of
such compensation.
Sec. 8. The term " employer " as used herein means anyone by
whom any employee is compensated or employed.
Sec. 9. The term " member of the Trade " as used herein includes
machine tool dealers, manufacturers' agents and importers of
machine tools who are engaged in the distribution of new machine
tools and equipment for same.
Sec. 10. The term " member of the Code " as used herein includes
any member of the Trade who shall expressly signify assent to this
Code.
Sec. 11. The term " President " means the President of the United
States.
Sec. 12. The term " trading areas " as used herein means the
several territories outlined in agreements between machine tool
dealers and machine tool manufacturers.
Sec. 13. Population for the purposes of this Code shall be deter-
mined by reference to the 1930 Federal Census.
Article III — Hours
Section 1. No employee, except as hereinafter provided, shall be
permitted to work in excess of eight (8) hours per day or in excess
of forty (40) hours per week, or in excess of six (6) days in any
one week; provided, however, that during inventory and other peak
periods, any employee may be permitted to work not to exceed
forty-eight (48) hours per week in any three (3) weeks in any six
(6) months period; provided, further, that the average hours worked
by any employee shall not exceed 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 employees engaged in a managerial,
executive, or supervisory capacity, who 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 employees engaged in outside delivery
service, plant maintenance, outside repair, and/or installation serv-
ice or to employees engaged in stock receiving and shipping service,
who shall be permitted to work not more than forty-eight (48) hours
per 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.
490
Article IV — ^Wages
Section 1. (a) The minimum rates of pay except as prescribed in
Section 3 of this Article IV shall be as follows in cities of the popu-
lation listed below and their immediate trade areas: Over 500,000
population not less than $15.00 per week ; 250,000 population or over,
but less than 500,000 population not less than $14.50 per week ; under
250,000 population not less than $14.00 per week.
Sec. 2, No part-time employee shall be paid at a rate less than the
minimum rates prescribed in Section 1 of this Article IV.
Sec. 3. Junior emploj^ees 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, however, that such junior employees shall not exceed in num-
ber five (5) percent of the total number of employees of any one
employer; and provided, further, that each employer may have at
least one junior employee in each district office.
Sec. 4. No employee now receiving compensation at a rate in
excess of the minimum herein prescribed shall have his weekly com-
pensation reduced on account of any reduction in the weekly hours
of employment to conform with the requirements of Article III.
Sec. 5. 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. 6. No distinction in rates shall be made between male and
female employees, where the same class of work is performed, re-
gardless of whether compensation is calculated on an hourly, weekly,
or other basis.
Sec. T. 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. 8. No person who has worked as a junior employee in the
Trade for the period of time prescribed in Section 3 of this Article
IV may thereafter be classified as a junior employee.
Sec. 9. This Article establishes minimum rates of pay for all
employees regardless of whether the employees' compensation is
calculated on an hourly, weekly, or other basis.
Article V — Administration
Section 1. To effectuate the policies of the Act a Supervisory
Agency is hereby constituted to cooperate with the Administrator in
the administration of this Code.
Sec. 2. During the sixty (60) day period following the effective
date of this Code, the Code Committee of the Associated Machine
Tool Dealers shall constitute a Temporary Supervisory Agency.
This Committee shall consist of five (5) members, and the Adminis-
trator in his discretion, may appoint not more than three (3) addi-
tional members (without vote) to represent the Administrator or
such groups or interests as may be agreed upon.
Sec. 3. To permit representation of members of the Trade, not
members of the Associated Machine Tool Dealers, the latter shall,
491
within sixty (60) days after this Code becomes effective, set up a
permanent Supervisory Agency to succeed the Temporary Agency.
Such permanent Agency shall be elected by the members of the
Trade, each member of the Trade to have equal vote. Such election
shall be by mail ballot, which ballot shall be sent to all known mem-
bers of the Trade. This permanent Agency shall consist of seven
(7) voting members of which at least five (5) shall be members of
the Association, and Administrator's appointees (if any) as referred
to in Section 2 of this Article V.
Sec. 4. In order that the Supervisory Agency shall at all times be
truly representative of the Trade, 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
Supervisory Agency is not truly representative, or does not in other
respects comply with the provisions of the Act, may require an ap-
propriate modification in the method of selection of the Supervisory
Agency.
Sec. 5. Any member of the Trade may become a member of the
Associated Machine Tool Dealers, and there shall be no inequitable
restrictions on such membership. Any member of the Trade may
participate in the preparation or any revision of, or additions or
supplements to, this Code by accepting his prorata share of the cost
and responsibility of creating and administering it by paying to the
Supervisory Agency his prorata share of the cost of creating and
administering this Code, as determined by the Superivsory Agency,
subject to the right of the Administrator, on review, to disapprove or
modify such determination of the Supervisory Agency.
Sec. 6. Nothing contained in this Code shall constitute the mem-
bers of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone for
any act of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority, exercising
reasonable diligence in the conduct of his duties hereunder, be liable
to anyone for any action or omission to act under this Code ; except
for his own willful misfeasance or nonfeasance.
Sec. 7. The Supervisory Agency shall have the following duties
and powers to the extent permitted by this Act and subject to the
right of the Administrator, upon review, to disapprove or modify
any action taken by the Supervisory Agency.
(a) To collect from members of the Trade all data, reports, and
statistics when and as required by the President and/or the Admin-
istrator and/or their agent or agents; also to collect such data, re-
ports, and statistics as may be required from time to time by the
Supervisory Agency. All such information shall be kept confiden-
tial, except insofar as disclosure may be necessary for tlie effective
administration and enforcement of tnis Code. Such data as may be
requested by the Administrator shall be made available to him.
Reports submitted by the Supervisory Agency to the President or
the Administrator shall be in the form prescribed or provided by
him. Nothing in this subdivision shall be considered as limiting the
powers conferred on the President or the Administrator by Title I
of the Act.
492
(b) In addition to information required to be submitted to the
Supervisory Agency, 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 Act.
(c) To hear and investigate complaints and attempt to adjust the
same in accordance with law.
(d) To study the trade-practice pro'^dsions of Article VI hereof,
and the operations thereof, and make such recommendations from
time to time to the Administrator as it deems desirable for modifica-
tion or addition thereto, which, upon the approval of the Adminis-
trator, after such hearing as he may prescribe, shall become a part of
this Code and have full force and effect as provisions hereof.
(e) To represent the Trade in conferring with the President or his
agents with respect to the administration of this Code and in respect
to the Act and any regulations issued thereunder.
(f) To make rules and regulations necessary for the administra-
tion of this Code.
(g) To coordinate the administration of this Code with such codes,
if any, as may be adopted by any subdivision of this Trade or any
related Trade or Industry, with a view to providing joint and har-
monious action on all matters of common interest, all with the
approval of the Administrator.
(h) Any notice, demand, or request required or permitted to be
given to or to be made upon any member of the Trade shall be suflB-
ciently given if mailed, postage prepaid, addressed to such member of
the Trade, at his address on file with the Supervisory Agency.
(i) Whenever in the judgment of the Administrator and the
Supervisory Agency of the Machine Tool and Forging Machinery
Industry and the Supervisory Agency herein established it becomes
advisable to appoint an arbitration board, such action shall be taken.
Article VI — Trade Practices
Section 1. Unfair practices shall be deemed to be practices or acts
;which by subterfuge, concealment, misrepresentation, or by any form
of discrimination, result in selling below published prices, or in de-
ceiving or misleading purchasers, or in misrepresenting the goods of
competitors. The following specific practices constitute unfair
methods of competition for members of the Trade and shall be
prohibited :
Sec. 2. False Marking or Brandings. — The false marking or brand-
ing of any goods which has the tendency to mislead or deceive cus-
tomers or prospective customers, whether as to the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepara-
tion of any such goods or otherwise.
Sec. 3. Misrepresentation 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 otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any goods of the Trade, or the credit terms, values,
policies, or services of any member of the Trade, or otherwise having
the tendency or capacity to mislead or deceive customers or
prospective customers.
493
Sec. 4. Conwnercial Bribery. — Directly or indirectly to give or
permit to be given, or oifer to give, money or anything of value to
agents, employees, or representatives of customers or prospectivQ
customers, or to agents, employees, or representatives of competitor's
customers or prospective customers, without the knowledge of their
employers or principals, as an inducement to influence their em-
plovers or principals to purchase or contract to purchase from the
makers of such gifts or offers, or to influence such employers or
principals to refrain from dealing or contracting to deal with
competitors.
Sec. 5. Interference with Contractual Relations. — Maliciously in-
ducing 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.
Sec. 6. Secret Rebates. — The secret payment or allowance of re-
bates, 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 pur-
chasers on like terms and conditions.
Sec. 7. Giving of Prizes, Premiums, or Gifts. — The offering or
giving of prizes, premiums, or gifts in connection with the sale of
goods, or as an inducement thereto, by any scheme which involves
lottery, misrepresentation, or fraud.
Sec. 8. Defamation. — The defamation of competitors by falsely
imputing to them dishonorable conduct, inability to perform con-
tracts, questionable credit standing, or by other false representations
or by the false disparagement of the grade or quality of their goods.
Sec. 9. Threats of Litigation. — The publishing or circulating 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 harrassing competitors or intimidating their customers.
Sec. 10. This Trade is engaged in the business of distributing ma-
chine tools to industrial users and not to the general public. Some of
the product is sold directly by the manufacturer, and some by com-
mission salesmen and agents, and all resales are on a commission
basis. In order that open prices may be maintained without discrim-
ination, it is established that the individual manufacturers' published
prices shall govern. Therefore, no member of the Trade in selling
goods on a commission, as above outlined shall deviate from the
manufacturers' f .o.b. factory price lists and discounts, or sell directly
or indirectly by any means wnatsoever, any of such goods at a price
lower or at discounts greater than those provided in the manufac-
turer's current net price lists or price lists and discount sheets,
except damaged and obsolete goods, and then only after being
reported to the Supervisory Agency.
Sec. 11. To quote a lump sum price on any schedule of goods
which does not show unit prices, or to make any additions or reduc-
tions on any other basis than the unit prices shown.
Sec. 12. To quote delivered prices or invoice purchaser without
adding to the f.o.b. factory prices, transportation, and other charges
and to fail to state in quotation where freight is prepaid that such
prepaid freight will be charged as a separate item and billed net
cash.
494
Article VII — Trading Area Committee
Section 1. The Supervisory Agency shall establish in each Trad-
ing Area a Trading Area Committee of not more than three members
of the Trade to assist in administering this Code within such trading
area, subject to review of the Administrator.
Sec. 2. Each Trading Area Committee may establish subject to
the approval of the Supervisory Agency and the Administrator, a
trade-in plan to govern all members of the Trade within the juris-
diction of such Trading Area Committee.
Article VIII — General Provisions
Section 1. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor or their agents in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
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 organiza-
tion of his own choosing.
Sec. 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.
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 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 thereof.
Sec. 5. Within each State, members of the Trade 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.
Sec. 6. Such provisions of this Code as are not required to be
included herein 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 supplemen-
tary provisions to this Code or additional codes may be submitted
for the approval of the President to prevent unfair competition in
price or other unfair and destructive competitive practices and to
effectuate the other purposes and policies of Title I of the Act con-
sistent with the provisions thereof.
Sec, 7. No provisions in this Code shall be interpreted or applied
in such a manner as to:
'a) Promote monopolies or monopolistic practices;
b) permit or. encourage unfair competition ;
fc) eliminate or oppress small enterprises; or
[d) discriminate against small enterprises.
Sec. 8. If any member of this Trade is also a member of any
other Trade or Industry, the provisions of this Code shall apply
495
and affect only that part of the business of such member which is
a part of the Trade covered by this Code.
Sec. 9. 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 they should so far
as is reasonably possible be limited to actual increases in the seller's
cost.
Sec. 10. Each member of the Trade shall post in a conspicuous
place full copies of this Code.
Sec. 11. This Code shall be in effect beginning on the eleventh
day after its approval by the President and shall be binding upon
all members of the Trade.
Approved Code No. 139
Registry No. 1149-12
O
Approved Code No. 140
CODE OF FAIR COMPETITION
FOR THE
WATERPROOFING, DAMPPROOFING, CAULKING
COMPOUNDS, AND CONCRETE FLOOR TREAT-
MENTS MANUFACTURING INDUSTRY
As Approved on November 27, 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 Xational Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Waterproofing, Dampproofing, Caulking
Compounds, and Concrete Floor Treatments 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 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,
Noveviber 27, 1933.
(497)
23789° 244-108 33
November 17, 1933.
The Presii»kjvt,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Waterproofing, Dampproofing, Caulking Compounds, and Concrete
Floor Treatments Monufacturing Industry in the United States, as
revised after a hearing conducted in Washington on November 3,
1933, in accordance A\ith the provisions of the National Industrial
Eecovery Act.
PROVISIONS or THIS CODE AS TO WAGES AND HOURS
Employees shall not work more than forty hours in any one week
or eight hours in any one day except that employees may work
a maximum week of forty-eight hours during six weeks within a
period of six months.
Factory employees who work more than eight hours a day or more
than forty hours a week shall be paid at least one and one-half
times their normal rates of pay. Except in cases of emergency, such
overtime shall not exceed eight hours in any one week.
Employees shall not work more than five days a week, except that
employees may work six days a week during six weeks within a
period of six months.
The maximum hours provisions do not apply to employees in
nuuiagerial, executive, or professional capacity who receive regularly
thirty-five dollars or more per week.
No employee except outside salesmen shall be paid at less than the
rate of forty cents per hour. Accounting, clerical, office, or delivery
employees shall be paid at least fifteen dollars per week.
To the extent practicable, weekly earnings shall not be decreased,
though the hours of work maj^ be reduced. Rates of pay for occu-
pations in excess of the minimum shall be increased so as to main-
tain differences in full-time weekly earnings existing on June 1, 1933.
Disabled employees, not exceeding in number five percent of any
employer's total number, shall not be paid less than eighty percent
of the minimum wages provided.
ECONOMIC EFFECTS OF THE CODE
Sixty-hour working weeks which have prevailed in this Industry
during peak periods in the past will be abolished by this Code. The
dull-period work weeks will be lengthened, because a larger inventory
stock must be provided to meet the peak-period demands.
Though there has been a reduction in the number of working hours,
because of the increase in the hourl}^ wage rate, the employees' annual
income will not be reduced.
(408)
499
The number of employees in this Industry will be increased by
approximately twenty percent. The Industry's pay rolls will be
increased by approximately twenty to twentj^-five percent.
This Code will eliminate many unfair practices and facilitate the
rendition of better service by this Industry to the construction indus-
try in the future. A guarantee evil detrimental to the Industry,
which has prevailed in the past, will be eradicated.
An effort has been made to synchronize this Code with that of
the Builders Supplies Trade so that harmonious relations between
these two industries can be promoted in the future.
This Code will beneficially affect this Industry, its employees, and
the public.
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
Waterproofing, Dampproofing, Caulking Compounds, and Concrete
Floor Treatments 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 tnem 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 dminis trator.
CODE OF FAIR COMPETITION
FOR THE
WATERPROOFING, DAMPPROOFING, CAULKING COM-
POUNDS, AND CONCRETE FLOOR TREATMENTS
MANUFACTURING INDUSTRY
ARTiciiE I — Purposes
To effectuate the policies of Title I of the National Industrial
Kecovery Act, the following provisions are established as a Code of
Fair Competition for the waterproofings, dampproofings, caulking
compounds, and concrete floor treatments industry, and shall be
binding upon every member thereof.
Article II — Definitions
The term " Waterproofings, Dampproofings, Caulking Com-
pounds, and Concrete Floor Treatments Industry ", as used herein,
includes the manufacturing, selling, and distributing by manufac-
turers to all classes of trade, and the furnishing by manufacturers
of sales-engineering services of products known as " waterproofings,
dampproofings, caulking compounds, concrete floor treatments " plus
engineering service pertaining to design, method of installation for
building maintenance and construction industries, and such branches
or subdivisions 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 services,
irrespective of the nature or method of payment of such compen-
sation.
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 " as used herein shall mean " The Associ-
ated Manufacturers of Waterproofings, Dampproofings, Caulking
Compounds, and Concrete Floor Treatments."
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, Title I.
The term " members of the Code " includes any employer who has
subscribed to this Code or complied with the provisions of Art. VI,
paragraph 4.
Article III — Hours
1. 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
(500)
501
(24) hour period, provided, however, that any employee may work
a maximum week of forty-eight (48) hours for six (6) weeks witliin
a period of six (6) months. For the purpose of this section, a
six (G) months' period shall begin on January 1st and July 1st,
respectivel3\
2. All factory employees who work more than eight hours in any
twenty-four (24) hours or more than forty (40) hours in any seven
(7) days shall be paid not less than one and one half (11/2) the
normal rate of pay for said excess. Such overtime shall not exceed
eight (8) hours in any one (1) week except in cases of emergency
maintenance or emergency repair work involving breakdowns or
protection of life or property.
3. No employee shall be permitted to work more than five (5)
days in any seven ^7) day period, except that employees shall be
permitted to work six (6) days in any seven (7) day period of six
(6) weeks within a period of six (6) months.
4. The maximum hours fixed in the foregoing paragraphs shall
not apply to employees in a managerial, executive, or other pro-
fessional capacity who receive in no week less than thirty-five (35)
dollars.
Article IV — Wages
1. No employee shall be paid at less than the rate of forty (40)
cents per hour, except that:
(a) The provision of this article shall not apply to outside
salesmen.
(b) Employers in the Industry, shall not pay any accounting,
clerical, office, or delivery employee in any office, or in any other
place, less than fifteen (15) dollars per week.
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. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
4. To the extent practicable, weekly earnings shall not be de-
creased, notwithstanding that hours of w^ork may be reduced and
rates of pay for occupations in excess of the minimum herein pre-
scribed shall be increased so as to maintain differences in full-time
weekly earnings existing on June 1, 1933.
5. Within thirty (30) days after the effective date of this Code,
each employer shall report to the Administrator through the Code
Authority all such readjustments made by him since June 16, 1933;
provided, however, that these rates shall be subject to readjustment
by the Administrator if the adjustments made by an employer are
not suitable in obtaining uniformity for this industry.
C. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at
a wage below the minimum established by this 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 hours as shall be stated in the "certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.
502
Article V
1. No person under sixteen (16) years of age shall be employed in
the industry, nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator a list of such
occupations, if any. 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.
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 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 of employment
regulating tiie 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. 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.
8. An employer shall so administer work in his cliarge as to pro-
vide a maximum practicable continuity of employment for his
personnel.
9. No employer shall pay an emplo5'-ee less than for the full sched-
ule daily hours of work for any employment in any one day. If an
employee is required or permitted to wait for work, he shall be
paid at his normal rate for such time. No increases in the amount
of production work shall be required of employees, for the purpose
of avoiding the benefits to employees prescribed in this Code, in
respect to wages and hours of employment. All new requirements
shall be reported to the Code Authority.
10. Ever}' employer shall provide for the health and safety of his
worlanen. He shall comply with all National, State, and local
ordinances and provisions of safety and health; and to protect his
employees by Workmen's Compensation Insurance, according to the
amounts required in his State or jurisdiction or the United States
Employees' Compensation Insurance, if that State has not estab-
lished a compensation scheme for this Industry.
11. Each employer shall post in conspicuous places full copies of
this Code.
503
Article VI — Administration
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the admin-
istration of this Code.
1. Organization and Gonstitviion of Code Authointy. — (a) The
Code Authority shall consist of seven (7) persons who shall be offi-
cers or executives of an employer engaged in the Industry, five (5)
of whom shall be appointed by the Directors Association, and two
(2) of whom shall be appointed by a majority vote of the members
of the Code who are not members of the Association, preserit at a
meeting duly called for that purpose (and for such othe)- business
as may be found desirable), which meeting shall be held during
the month of September in each year at the call of the Board of
Directors of the Association, who shall fix the time and place of
the meeting. Notice of the time and place of holding said meeting
shall be sent by registered mail by the Secretary of the Association
at least ten (10) days before the meeting to every member of the
Code who is not a member of the Association who shall have signified
his or its intention to participate under this Code, and to all other
such members in this Industry not a member of the ^Association whose
names and addresses are known to the Code Authority. Each per-
son present at the meeting shall cast one vote for the employer he
represents, but not more than one representative of eacli employer
shall vote. Voting by proxy shall be permitted. Until such meet-
ing shall be had, said two members shall be elected by majority
vote of the nonmembers of the Association by a vote taken by mail
under conditions made by the Association and approved by the
Administrator.
(b) The Administrator may appoint (not to exceed three) addi-
tional members, to serve without expense and without vote, to repre-
sent the Government. They are to be appointed for terms of from
six (6) months to one (1) year, and, if more than one is appointed,
their terms are to be so arranged that they do not expire at the same
time.
(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, 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.
(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 hearings
as he may deem proper, and thereafter if he shall find that tlie 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 tlie Admin-
istrator on review to disapprove or modify any action taken by the
Code Authority.
504
(a) The Code Authority shall be the general planning and fair
practice agency for the Industry. The Code Authority shall have
the powers and duties specifically provided herein, shall make such
reports as tlie Administrator may require, and in addition thereto
shall have full power and authority, subject to review by the Ad-
ministrator, from time to time to require such reports from members
of the industry with respect to capacity, production and orders for
shipnient, persons empio3'ed, wages and hours of labor, prices, costs
and methods of costing, and other items as may be necessary to advise
the Administrator adequately in the administration and enforcement
of the provisions of this Code ; and to provide for the standardization
of products by the members of the Industry. It shall also have the
power and authority to make rules and regulations for its own con-
duct and the administration of this Code, subject to the approval of
the Administrator, and to do all things necessary or proper to enable
the Industry to function under this Code and to give effect to the
rules, regTilations, and conditions herein contained or promulgated
hereunder, subject, however, to review by the Administrator.
(b) In order to assure confidential treatment of individual figures,
all reports, data, and information which the said Code Authority is
empowered to collect or receive shall be collected or received by an
agent appointed by the Code Authority, not a member or connected
with a member of the Industry. The Code Authoritj^ shall likewise
appoint such an agent or agents to make such investigations to the
extent permitted by the Act on complaints of violation of this Code
as may be deemed necessary. All reports, data, and information so
collected or received, or so obtained on any such investigation, shall
be kept confidential by such agent or agents collecting, receiving, or
obtaining the same, except that any such reports, data, or informa-
tion shall be available to the Administrator upon demand and except
that in the event any such reports, data, or information shall sub-
stantiate any claimed violation of this Code, then the Code An 'lority
shall be informed and may present evidence of any such violation to
the Administrator.
3. The Code Authority may delegat-e any of its powers or func-
tions to subcommittees or to such other agents as it may specifically
determine, provided, however, that the Code Authority shall not be
relieved of responsibility with respect to any such delegated powers
or functions; that such subcommittees or other agents in the exer-
cise of such delegated powers or functions shall comply with all
applicable provisions of this Code.
4. 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, on the basis of volume of business
or such other factors as may be deemed equitable to be taken into
consideration.
5. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to governmental agencies
such statistical information as the Adninistrator may deem neces-
sary for the purposes recited in Sectio.i 3 (a) of the Act.
505
Article VII — Uniform Cost Accounting
1. It is the judgment of this Industry that accurate knowledge of
costs is indispensable to the proper administration of the provisions
of this Code. Each manufacturer subject to the jurisdiction of this
Code may install such simplified uniform system of accounting as
may be recommended by the Code Authority (or its properly author-
ized agent).
2. There shall be no selling below allowable cost. It shall con-
stitute a violation of this Code for any member of the Industry to
sell below his allowable cost, which " allowable cost " shall be the
sum of :
(a) MateiHal Costs. — The seller's original cost of material, or if
replacement be lower, then the replacement cost (based on cost fur-
nished monthly or oftener if necessary by authority of the Code Au-
thority, or its properly authorized agent), and if any materials are
used for which costs are not furnished monthly or oftener. as herein
provided, the cost used for such item or items shall be tlie seller's
total current delivered replacement cost; plus
(b) Cost of containers and/or packages, plus
(c) Cost of Processmg. — 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 oi plant facilities of the
members of the Association, during the years of 1928 to 1932 inclu-
sive, and provided that such average rate shall not include an}^ plants
not in operation, plus
(d) A reasonable percentage to be determined by the Code Au-
thority of the "Manufactured Cost", the sum of (a) plus (b) plus
(c), provided that taxes, insurance, reserves of any nature, accumu-
lated unearned burden, interest on investment, interest or charges on
funded or other debt shall not be included under (c) Cost of
Processing.
3. In the case of any complaint by an interested party that a manu-
facturer is violating the above cost provisions, the Code Authority
shall request proof of compliance from 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.
The report of the Federal Trade Commission regarding the costs of
the defendant manufacturer shall be final insofar as the Code Au-
thority is concerned, and upon the receipt of such report the Code
Authority shall act in accordance with the National Recovery Act.
Article VIII — 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 marking, invoicing, or
branding of any product of the Industry which has the tendency
506
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,
2. Misrepresentation 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 otherwise, whether concerning the grade, quality,
quantity, performance, substance, character, nature, origin, size, fin-
ish, 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.
3. Commercial Bribery. — Directly or indirectly to give or permit
to be given, or offer to give, money or anything of value to agents,
employees, or representatives of customers or prospective customers,
or to agents, employees or representatives of competitors' customers
or prospective customers, as an inducement to influence their em-
ployers or principals to purchase or contract to purchase from the
makers of such gifts or offer, or to influence such employers or prin-
cipals to refrain from dealing or contracting to deal with competitors.
4. Interference with Contractual Relations. — Maliciously inducing
or attempting to induce the breach of an existing oral or written con-
tract between a competitor and his customer or source of supply,
or interference with or obstructing the performance of any such
contractural duties or services.
5. Secret Rebates. — 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 pur-
chasers of special services or privileges not extended to all purchasers
on like terms and conditions.
6. Giving of Prizes.^ Premiums., or Gifts. — The offering or giving
of prizes, premiums, or gifts in connection with the sale of products,
or as an inducement thereto, by any scheme which involves lottery,
misrepresentation, or fraud.
7. Threats of Litigation. — The publishing or circularizing of
threats or suits for infringement of patents or trade marks or of any
other legal proceedings not in ^ood faith, with the tendency or effect
of harassing competitors or intimidating their customers.
8. Espionage of Ccyinpetitors. — 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.
9. All prices quoted and all sales made shall be upon the basis of
freight-on-board, either job or factory, as the member of the Indus-
try may elect.
10. The terms of sale shall uniformly be established at not to
exceed two percent discount for payment within t«n days, or end
of month, with net terms of not to exceed sixty days.
11. No sales shall be influenced under the guise of reciprocity.
There shall be no false invoicing of any nature whatsoever and no
giving of free merchandise.
5U7
12. It shall be proper for any member to invoice its subsidiary
companies or a fellow member in any manner whatsoever for resale
but not for contract installation ; provided, however, that the parent
company shall be responsible for the adherence of such subsidiaries
to the standards of fair competition as set up in this C. ile. Prod-
ucts of the Industry, supplies for contract application to subsidiary
companies, to fellow members, to contract departments or divisions,
or in any other manner, shall be supplied subject to all provisions
of this Code.
13. The practice of supplying trade sales accounts on consignment
is prohibited. No member of the Industry shall indirectly violate
this Article by any subterfuge such as that commonly known as
warehousing arrangements. Every manufacturer who has such con-
signment stocks in the hands of buyers on the effective date of this
Code may continue the same but he shall file a detailed Jist of such
accounts with the Code Authority where references may be made to
it at any reasonable time by interested parties. If any manufacturer
finds it necessary to take over a stock on a consignment basis for
legitimate credit reasons, he shall be permitted to do so, but shall
immediatelj'' report the circumstances to the Code Authority. No
merchandise of a liquid chemical nature shall be subject to return
for credit or exchange, and all other returns must be in unopened
original containers within thirty days after delivery, prepaid by the
customer and credit shall be subject to a 10% deduction for handling
charges.
14. In addition to warranties implied by law, the manufacturer
may assume full guarantee for the quality of his products, which
guarantee shall be limited in amount to the sum of money received
for such products. But in no event shall the manufacturer issue a
guarantee covering the performance of the product in work where he
does not supply the workmanship.
15. There shall be no deviation for the purposes of influencing
a customer or prospective customer from the published and pre-
viously established specifications and recommendations of a par-
ticular member for a particular product.
16. No member shall agree or guarantee to furnish sufficient quan-
tities of the materials covered by this code for any building or
construction operation at a lump sum price. To quote such lump
sum bid shall constitute an unfair trade practice.
17. Nothing in this Code shall limit the effect of any adjudication
by the Courts or holding by one 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 of this Code.
Article IX — Modification
1. 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
specifically, but without limitation, to the right of the President to
508
cancel or modify his approval of this Code or any conditions im-
posed 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 effec-
tive on approval by the President.
Article X — Moxopolies, etc.
No provisions of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
Article XI — Price Increases
Whereas the policy of the Act to increase real purchasing power
will be made impossiole 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 — Effective Date
This Code shall become effective on the first Monday after its
approval by the President.
Approved Code No. 140
Registry No. 1610-06
o
Approved Code No. 141
CODE OF FAIR COMPETITION
FOR THE
INVESTMENT BANKERS
As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT
ExecutiveOrder
An application haviiig 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 Investment Bankers, 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 is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
Administrator. '
The White House,
Novemler 27, 1933.
(509)
23790° 244-109 33
November 20, 1933.
The President,
The White House.
Sir : I have the honor to transmit herewith the report of the
Hearing on the Code of Fair Competition for Investment Bank-
ers conducted in accordance with the requirements of the National
Recovery Administration, in the Auditorium, United States Chamber
of Commerce Building, on November 6, 1933. The sponsor of this
Code is the Investment Bankers Association of America. Although
its present membership consists of only 392 out of some 6376 security
dealers, these members comprise the leading investment houses of the
United States and Canada. For the year 1932 the business of mem-
bers of the Association approximated 90 percent of the total volume
according to reliable records.
It is important to note that the underwriting business of invest-
ment banking has declined to a negligible amount at this time. This
may be attributable to various causes and particularly to the excess
flotation of new securities during the years culminating with 1929.
In that period underwriting houses keenly competed in combing the
field for new issues and abnormally large sales organizations were
created by the dealers to dispose of the securities. Trade practices
developed which resulted in the enactment of the Securities Act of
1933. The investment bankers definitely realize the need for fair
practice provisions to govern their business and at their recent annual
convention decided that adequate provisions be made a part of the
Code. They have voluntarily agreed to submit Fair Practice pro-
visions in a supplementary code within ninety days of your approval
of this Code.
To this end a National Committee, composed of twenty-two out-
standing investment bankers under whom are seventeen regional
Group Chairmen, is working in conjunction with the officers and the
Board of Governors of the Investment Bankers Association of
America. In addition invitations have been issued to a number of
State Security Commissioners and others to collaborate with the
National Committee. Trade Practices which will be filed will assure
the operation of the Code and will place the investment banking
business on a far sounder and fairer basis than it has been in the
past.
If in your judgment the Fair Trade Practice Provisions when sub-
mitted either eliminate entirely or correct the abuses that affect the
public interest, the flow of investment capital into business and
industry, which is an essential element in the recovery program, will
have been expedited.
(510)
511
Supplementary data submitted by the Association in regard to
employment and wages revealed a startling contrast to the prevail-
ing inactivity in the investment field. A wide and thorough canvas
of members as of November 1, 1933, who were in business on Novem-
ber 1, 1929, showed that there were 15,070 employees in these houses
on November 1 this year as compared to 24,406 employees on the
corresponding date in 1929, or a reduction in numbers of 38%.
The canvas further showed a wide divergence for a number of
o-roups in the average reduction in wages of employees receivmg
$150.00 per month or less on November i, 1929, compared with the
amounts they received on November 1, 1933. One group reported
average increases of from 1/2% to 45%, while the lowest group re-
ported decreases over 30%. On the basis of the complete survey it
seems reasonably clear that the average net reduction in wag s of
all employees receiving $150.00 per month or less on November 1,
1929, will not exceed 15%.
The Labor provisions of this Code coincide with those of the
Code for Stock Exchange Firms because of the inseparable rela-
tionship of the two businesses. Here again the provision for over-
time payment is, in fact, of minor importance compared to the
known generosity of employers to employees during prosperous
periods.
The only available record as to the volume of the mvestment
banking business is in the compilation of capital issues publicly
offered. Using figures taken from the table submitted, the 1929 vol-
ume of such financing exceeded $11,500,000,000 as against a possible
$1,000,000,000 for 1933. The severity of this shrinkage in business
may be better understood when it 'is realized that the estimated
$1,000,000,000 of publicly offered issues is only 25% of the volume
done in 1920, the low point of the previous depression, and only
about 10% of the average volume of the years 1927, 1928 and 1929.
In no year since 1919, except 1932 and 1933 has the volume been
less than $4,000,000,000, hence it is reasonable to assume that the
normal annual capital requirement of the country is somewhat in
excess of that figure.
From a summary of the foregoing, it will be seen that although
the volume of recorded business decreased over 90% in the past four
years, the number of employees decreased but 38%, and the wages
of employees mentioned decreased on an average only 15%. Prob-
ably no other business in the country finds itself in a comparable
position. The members do not hesitate to say that the average
investment banker is today maintaining an organization far in
excess of his present needs, due partly to the need for technically
trained employees, even though their retention has not been justified
during the past two years.
No objectors from the business or from the public appeared at
the Hearing, nor have any objections since been filed.
The Code has been accepted by the Investment Bankers Associa-
tion of America and has received the approval of the several Ad-
visory Boards of the National Recovery Administration with the
exception of a qualification by the Consumers' Advisory Board,
included in this report.
512
I find that the Code complies with the pertinent provisions of
clauses (1) and (2), subsection (a) of Section 3 of the National
Industrial Recovery Act. I recommend, therefore, that you approve
the Code of Fair Competition for Investment Bankers as submitted
herewith.
Respectfully,
Hugh S. Johnson,
Administrator,
CODE OF FAIR COMPETITION
FOR THE
INVESTMENT BANKERS
Preamble
To effectuate the policy of Title I of the National Industrial Ke-
eovery Act, the following provisions are established as a Code of
Fair Competition for Investment Bankers.
Article I — Definitions
(1) The term " investment banking business " as used herein shall
mean the business of underwriting or distributing issues of bonds,
stocks, or other securities, or of purchasing such securities and otter-
ing the same for sale as a dealer therein, or of purchasing and selling
such securities upon the order and for the account of others; pro-
vided, however, that the term " investment banking business shall
not include transactions on regularly organized exchanges, but such
term shall include all business relating to such transactions to the
extent that such business is not conducted by a member ol such
exchange or by any person or organization having the privilege ot
any such exchange for itself or any of its partners or executive
officers
(2) The term "employer" as used herein shall include every
natural person, co-partnership, corporation, association, or other
entity that is engaged in doing any investment banking business.
If the major part of the business of any employer consists ot anj
business other than investment banking business which other busi-
ness is governed by any other code or codes, such employer shall not
be bound as to his investment banking business by the wage and
hour provisions of this Code, but shall be governed as to his invest-
ment banking business by the wage and hour provisions of such
other code or codes; but all other provisions of this Code shall apply
to such employer as to his investment banking business.
(3) The term "employee" as used herein shall mean anyone
employed by any employer, regardless of the nature or method of
payment of his compensation. ■, i • i, n +u«
(4) The term "Administrator" as used herein shall mean the
Administrator appointed by the President of the United States under
the National Industrial Recovery Act. t. n u j * • r.A
(5) Population for the purposes of this Code shall be determined
by reference to the 1930 Federal Census.
Article II— Labor Provisions
(1) (a) Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
(513)
514
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(&) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
((?) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved, or prescribed by the President of the United States.
(2) No person under sixteen years of age shall be employed by
any employer; provided, however, where a state law requires higher
minimum age, no person below the age so specified shall be employed
within that state.
(3) (a) No employer shall employ any i^erson for more than 40
hours in any one week, provided, however, that in order to meet
contingencies which cannot be anticipated and over which the em-
ployers have no control, the said hours of employment may be in-
creased to meet such contingencies, but in no event shall such em-
ployees work more than a total of 44 hours per week averaged over
a period of four (4) months without the payment of overtime.
{b) The maximum hours fixed in the foregoing paragraph {a)
shall not apply (1) to guards and watchmen employed at night to
safeguard securities or assets (provided such guards and watchmen
do not work more than six (6) days each week), or (2) to partners
in any copartnership, or (3) to outside salesmen, or (4) to employees
in a managerial or executive capacity or in any other capacity of
distinction or sole responsibility who receive more than $35 per week.
(c) No employee, except outside salesmen working solely on a
commission basis, shall be paid (1) less than $16 per week in any
city of over 2,000.000 population; (2) less than $15 per week in any
city between 500,000 and 2,000,000 population; (3) less than $14.50
per week in any city between 250,000 and 500,000 population; (4) less
than $14 per week in any city between 2,500 and 250,000 population;
and (5) in any town of less than 2,500 population all wages of em-
ployees shall be increased by not less than 20% provided that this
shall not require the payment of wages in excess of $12 per week;
provided, however, thatVhere a State law^ provides a higher mini-
mum wage than is provided in this Code, no person employed within
that State shall be paid a wage below that required by such State
law, • 1 . 1 /x\
{d) All employees, except employees mentioned in paragraph (6)
above, if employed for more than a total of 44 hours per week aver-
aged over a period of four (4) months, shall be paid for all such
excess time of employment at the rate of 1331/3% of the regular
hourly rate at which such persons shall then be employed; but re-
gardless of the calculation of such overtime averaged over a four
months' period, all such employees if employed for more than 48
hours in any one week shall be paid for such time in excess of 48
hours at the rate of 1331/3% of the said regular rate. The amount
paid for overtime for any weekly period shall be credited on the
amount of overtime paid at the end of any four months' period, and'
515
in computing the amount of overtime to be paid as herein provided
the regular hourly rate at which any person shall be employed shall
be determined by dividing the amount per week which he shall regu-
larly be paid by 40.
(e) The wages of employees (except employees mentioned in the
foregoing subdivisions (2), (3), and (4) of paragraph (6)) being
paid on September 1, 1933, in excess of the established minimum
shall not be decreased, notwithstanding that the hours worked in such
employment may be hereby reduced.
Aeticle III — Administration
(1) To cooperate with the Administration in the administration
of this Code there is hereby constituted an Investment Bankers Code
Committee. Such Committee shall consist of three members ap-
pointed by the President of the Investment Bankers Association of
America ; two members chosen by a fair method approved by the
Administrator to represent employers not members of the Invest-
ment Bankers Association of America ; and a representative or repre-
sentatives without vote appointed by the President of the United
States. The five voting members of said Committee shall be ap-
pointed or chosen from assenting employers.
(2) The Investment Bankers Code Committee herein provided for
shall be the representative body from the employers subject to this
Code, to act on their behalf in the administration and enforcement
of this Code, and shall have, in addition to the specific powers herein
provided for, all general powers necessary for such administration
and enforcement; such general and specific powers shall be at all
times subject to the right of the Administrator to veto or modify any
action taken by such Committee.
(3) The Investment Bankers Code Committee may from time to
time appoint such committee or committees as it may deem necessary
or proper to carry out its powers and duties under the Code and
may delegate to any such committee such of its powers and duties
as it may deem necessary and proper to effectuate such purposes.
The representative or representatives appointed by the President of
the United States shall be given notice of all meetings of any com-
mittee or committees appointed by the Investment Bankers Code
Committee and shall have the right to participate without vote in
the activities of such committee or committees.
(4) The Investment Bankers Code Committee may from time to
time present to the Administrator recommendations which will tend
to effectuate the administration of the provisions of this Code and
the policies of the National Industrial Recovery Act.
(5) In order to keep the President of the United States and the
Administrator informed as to the observance or nonobservance of this
Code, each em])loyer shall prejoare and file with the Investment
Bankers Code Committee, at such time and in such manner as said
Committee may prescribe, statistics covering the number of persons
employed, wage rates, hours of working, and such other data or
information as the Investment Bankers Code Committee may require,
provided such other data or information shall also be required by the
Administrator. All information so furnished shall be treated as
confidential and used only for the sole purpose herein set forth.
516
(6) The expenses of administering this Code shall from time to
time be equitably assessed and collected by the Investment Bankers
Code Committee from employers assenting to this Code in accord-
ance with a plan to be approved by the Administrator ; but no such
employer shall be liable for any payment in excess of said assessment.
(7) Any employer may voluntarily assent to this Code by signing
and filing his assent with the Investment Bankers Code Committee,
No, 33 South Clark Street, Chicago, Illinois.
Article IV — Fair Trade Practices
Within 90 days after the approval of this Code, the Investment
Bankers Code Committee shall submit, in accordance with the pro-
cedure set forth in paragraph (1) of Article V, supplementary
provisions relating to fair trade practices.
Article V — ^Amendments and Termination
(1) Any employer assenting to this Code that may hereafter desire
to have the Code amended or any supplementary provisions added
shall take the following procedure: Propose the amendment to the
Investment Bankers Code Committee which shall, if a majority of
the Committee shall approve the proposed amendment, submit it to
a meeting of the emploj^ers assenting to this Code especially called
for that purpose upon due notice; and if at any such meeting a
majority of such employers shall be present or represented and if
a majority of such employers as are present or represented at said
meeting shall vote in favor of the adoption of such proposed amend-
ment, such amendment shall be submitted by the Investment Bankers
Code Committee to the President of the United States for approval,
and such proposed amendment shall take effect as a part of this Code
upon such approval thereof by the President of the United States.
Employers voting on such amendments as above provided may vote
in person, by proxy in writing, or may vote in writing without being
personally present.
(2) This Code shall continue in effect as long as the National
Industrial Kecovery Act shall be in effect, but in no event after
June 16, 1935, and shall in all respects be subject to the provisions
and conditions of the National Industrial Recovery Act.
(3) This Code and all the provisions thereof are expressly made
subject to the right of the President of the United States, in accord-
ance with the provisions of subsection (b) of section 10 of the Na-
tional Industrial Recovery Act, from time to time to cancel or
modify any order, approval, license, rule, or regulation issued under
Title I of the National Industrial Recovery Act, and specifically,
but without limitation, to the right of the President of the United
States to cancel or modify his approval of this Code or any condi-
tions imposed by him upon his approval thereof.
Article VI — Effective Date
This Code shall become effective on the second Monday after its
approval by the President of the United States.
Approved Code No. 141.
Registry No. 1707-04.
o
Approved Code No. 142
CODE OF FAIR COMPETITION
FOR THE
RETAIL JEWELRY TRADE
As Approved on November 27, 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 Retail Jewelry 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 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 sub-
section (a) of section 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United Stat-es, pursuant 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. Johnson,
A dministrator.
The White House,
Novemher 27, 1938.
(517)
23791' 244-110 88
November 17, 1933.
The President,
The White House.
Sir : This is a report of the Hearing on the Code of Fair Competi-
tion for the Ketail Jewelry Trade conducted at the United States
Chamber of Commerce, on November 10, 1933, in accordance with the
provisions of the National Industrial Recovery Act. The Code which
IS attached was presented by duly authorized and qualified repre-
sentatives of the Trade, complying with the statutory requirements,
said to represent approximately 3,500 retail jewelers or 80% in num-
ber and 95% in volume of sales of the Trade.
THE TRADE
Complete statistics on the Retail Jewelry Trade are contained in
the Census of Retail Distribution, 1930, conducted by the United
States Department of Commerce, Bureau of the Census.
According to this source there were in 1929, 19,998 retail jewelry
establishments, which figure includes a large number of single
proprietorships, service and repair establishments. The Jewelers'
Board of Trade. New York, New York, states that it has credit
ratings for only 12,000 jewelers in the United States, with a mer-
chandise inventory of $1,000 or more, which would indicate that
approximately 40% of those classified as retail jewelers carry inven-
tory of less than $11)00.
According to the Census figures the total net sales of retail jewelry
establishments were $536,280,697 in 1929. Sales in 1932 are esti-
mated to have been apDroximately 70% less than in 1929.
The number of employees in the retail jewelry establishments
included in the Census are given as follows :
Number of Employees, 1929
Full time 38, 273
Total 45, 594
Proprietors and firm members not on pay roll 19, 982
It is estimated that the number of employes in 1932 was approxi-
mately 25% less than the number in 1929.
PROVISIONS OF THE CODE
Labor Provisions. — The hour and wage provisions of the Code are
substantially the same as those adopted and approved in the Code of
Fair Competition for the Retail Trade. The only departures from
the Retail Code are as follows:
(518)
519
(1) A more elastic provision for the reduction of store hours for
the summer months to conform with the practices in the Trade.
(2) A slightly more elastic provision for peak periods to allow
for peculiar requirements of the jewelry trade.
(8) A provision for suspension of maximum store hours in cAses
of emergency or to allow the completion of a transaction with a
specific customer.
(4) A departure from the provisions of the Ketail Code regarding
the limitations upon number of persons working unrestricted hours
to allow for one additional worker employed in a managerial capacity
to qualify under this section.
It is expected that improvement in employment conditions similar
to that resulting from the Eetail Code will obtain under this Code.
Adminhtration. — Administration of the Code is to be accomplished
by a National Code Authority and local committees which shall
cooperate with the Code Authority administering the Eetail Code.
Provision is made for reports to the Administrator and investiga-
tions by the Code Authority of trade problems which may arise.
Trade Practices. — Trade Practice provisions of the Code are un-
usually excellent and eminently fair. The provisions are designed to
establish a common terminology and a definite set of standards or
measures for the Retail Jewelry Trade, and to prohibit a number of
parasitic and deceptive practices in the trade. The clauses supply a
much needed and heretofore lacking common standard of quality and
terminology to be used in the trade and giving a uniform measuring
rod for the testing of retail jewelers' wares and practices.
The enforcement of the trade practice provisions should result in
extra high standards of competition in this Trade with the conse-
quent protection of the interests of the consuming public.
FINDINGS
I find that —
(a) This 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.
(b) The American National Retail Jewelers Association to be
truly representative of the Retail Jewelry Trade. The By-laws of
this Association provide no inequitable restrictions to membership.
(c) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them and will tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
I recommend that the Code be approved.
Respectfully,
Hugh S. Johnson,
A dminis trator.
CODE OF FAIR COMPETITION
FOR THE
RETAIL JEWELRY 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 Jewelry Trade.
Article I — Definitions
1. Retail Jetmlry Trade. — The term " retail jewelry trade " as
used herein shall mean all selling to the consumer, and not for the
purpose of resale in any form, of jewelry as defined herein or services
or repairs to jewelry, in the continental United States, excluding the
Panama Canal Zone.
2. Retail Jeweler. — The term " retail jeweler " as used herein shall
mean any individual or organization engaged wholly or partially in
the retail jewelry trade.
3. Retail Jewelry Establhhinent. — The term " retail jewelry es-
tablishment " as used herein shall mean any store or department of
a store engaged in the retail jewelry trade, but shall not include
stores or departments in which the principal business is the selling
at retail of products other than jev\elry, or services or repairs to
jewelry.
4. Jew^elry. — The term " jewelry " as used herein shall mean dia-
monds and other precious and semiprecious stones, j^earls, cultured
pearls, synthetic stones, and any imitations of any of these articles,
articles for personal we^r and adornment of any character whatso-
ever commonly and commercially known as " jewelry ", watches,
clocks, silverware, goldware, and precious metal ware of the plati-
nmn group, and wares plated with any of the precious metals.
5. Employee. — The term " employee "' as used herein shall mean
any person emplo)"ed hj any retail jeweler but shall not include
pereons employed principally in the selling at retail of products not
included within the definition of retail jewelry trade.
6. Definitions of Personnel. — (a) Executive: The term "execu-
tive " as used herein shall mean an employee responsible for the
management of a business or a recognized subdivision thereof.
(b) Professional Person. — The term " professional person " as
used herein shall mean lawyers, doctors, nurses, research technicians,
advertising specialists, and other persons engaged in occupations
requiring a special discipline and special attainments.
(c) Outside Salesnien, — The term " outside salesmen " as used
herein shall mean a salesman who is engaged not less than sixty (60)
percent of his working hours outside the establishment, or any
branch thereof, by which he is emploj'ed.
(520)
521
(d) Outside Collector. — The term " outside collector " as used
herein shall mean a collector of accounts who is engaged not less
than sixty (60) percent of his working hours outside the establish-
ment, 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 primarily in
watching and safeguarding the premises and property of a retail
establishment.
(f ) 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 Evvployee. — The term " outside service em-
ployee " as used herein shall mean an employee engaged primarily
m 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) j^ears 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 Jewelry trade.
(k) Part-time Employee. — The term " part-time emploj^ee " as
used herein shall mean an employee who works for less than the
maximmn work week.
7. South. — The term " South " as used herein shall mean Virginia,
"West Virginia, Maryland, North Carolina, South Carolina, Georgia,
Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas.
Louisiana, Oklahoma, New Mexico, Texas, and the District ol
Columbia.
8. Population. — Population shall be determined by reference to
the Fifteenth Census of the United States (U.S. Department of
Commerce, Bureau of Census, 1930).
Article II — Effective Date
The effective date of this Code shall be the second Monday after
its approval by the President of the United States.
Article III — General Labor PR0^^SI0Ns
1. Collective Bargaining. — (a) 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.
(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.
522
(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.
2. CJiilcl Labor. — Oii and after the effective date of this Code no
person under the age of sixteen (16) years shall be employed except
that |)ersons fourteen (14) and fifteen (15) years of age may be
employed either — '
(a) For a period not to exceed three (3) hours per day on six (6)
days per week, or
(b) 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 employed within such State.
Article IV — Store Hours and Hours of Labor
1. Bo^ic Store and Working Hows. — On and after tlie effective
date of this Code establishments in the retail jewelry trade shall elect
to operate upon one of the following schedules of store hours and
hours of labor :
Group A. — Any establishment may elect to remain open for busi-
ness 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.
Group B. — Any establishment may elect to remain open for busi-
ness fifty-six (56) hours or more per week but less than sixty-three
(63) hours per week; no employee of such establishment 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. — An}^ establishment may elect to remain open for busi-
ness sixty-three (63) hours or more per week; no employee of such
establishment shall work more than forty-eight (48) hours per week,
nor more than ten (10) hours per day, nor more than six (6) days
per week.
No employee shall work 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.
2. Schedule of Hours to he Posted. — On or within one week after
the effective date of this Code every retail estabhshment shall desig-
nate under which of the Groups set forth in the preceding Section
it elects to operate and shall post and maintain in a conspicuous place
523
in the establishment a eopy of such election showing its store hours
and employee working hours.
3. Changes in Store Hours and Employee Workhir/ Hours. — (a)
Xo establishment may change from the Group in which it has elected
to operate except upon December 31 of every year.
(b) 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.
(c) Any retail jewelry establishment may, during the months of
May to September, inclusive, temporarily reduce its store hours, but
the weeklj^ wages of its employees shall not on that account be
reduced.
4. Exceptions to maximum, periods of labor. — (a) Professional
persons, outside salesmen, outside collectors, watchmen, guards, and
store detectives. The maximum periods of labor prescribed in Sec-
tion 1 of this Article shall not apj^jly to professional persons em-
ploj^ed and working at their profession, or to outside salesmen, out-
side collectors, watchmen, guards, and store detectives.
(b) Maintenance and outside service employees. — The maximum
periods of labor prescribed in Section 1 of this Article shall not
apply to maintenance and outside service employees; but such em-
plo3^ees 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 (G) 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
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 executives
paid not less than ten (10) percent below the wages just specified
ma}^ work in excess of such maximum periods.
(d) Peak periods. — At Christmas, inventory, and other peak times,
for a period not to exceed five (5) weeks in the calendar A^ear, an
employee whose basic work week is forty (40) hours may Avork not
more than fort^'-eight (48) hours per Aveek and nine (9) hours per
day; an employee whose basic work week is fortj^-four (44) hours
may work not more than fiftj^-two (52) hours per week and nine and
one half (9i/4) 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.
(e) The maximum hours prescribed in this Article shall not apply
in cases of very special emergency where the limitation, if imposed,
would preclude the satisfactory completion of a transaction with a
specific customer, or the satisfaction of requirements as to reports
to any Federal. State, or Trade Agency, or in emergencies threaten-
ing damage or destruction to the plant or assets of retail jewelry
establishments.
23701° -244-110 33 2
524
5. Limitation upon nimiber of persons working unrestricted
hours. — Notwithstanding the provisions of the foregoing sections of
this Article, and regardless of the number of persons otherwise per-
mitted 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 others) who shall
be permitted to work unrestricted hours shall not exceed the following
ratio: In establishments comprised of twenty (20) workers or less
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 or fraction
thereof; provided that in retail jewelry establishments with five or
less workers, two workers qualifying under this section may, but only
in a managerial capacity, work unrestricted hours ; 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).
6. Hours of loorJc to he consecutive. — The hours worked by any
employee during each day shall be consecutive, provided that an
interval not longer than one hour may be allowed for each regular
meal period, and such interval not counted as part of the employee's
working time. Any rest period which may be given employees shall
not be deducted from such employee's working time.
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.
8. Conflict with State laws. — ^When any State law prescribes for
any class of employees shorter hours of labor than those prescribed
in this Article, no employee included within such class shall be em-
ployed within such State for a greater number of hours than such
State allows.
Article V — Wages
1. Basis schedule of wages. — On and after the effective date of
this Code, the minimum weekly rates of wages which shall be paid
for a work week as specified in Article IV — whether such wages are
calculated upon an hourly, weekly, monthly, commission, or any
other basis — shallj 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.
(b) Within cities of from 100,000 to 500,000 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.
(c) 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
525
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, viUages 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 employee
shall be paid less than at the rate of $10.00 per week.
(e) Within towns, villages, and other places with 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
maintenance 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 emj^loyee not included in the fore-
going paragraphs and not specifically' excepted hereinafter shall be
upon the basis of a forty (40) hour work week.
2. Juniors and apprentices. — Junior and apprentice employees may
be 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'^emplovee to every five employees or fraction thereof up to
twenty (20), and one such employee to every ten (10) employees
above twenty (20).
3. Southsi^ tcage diferenfml—lu the South, within cities of oyer
25,000 population, the minimum wages prescribed in the foregoing
sections mav be at the rate of $1.00 less per week; within cities,
towns, and villages of fi'om 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
$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 imder
2,500 population the wages of all classes of employees shall be in-
creased 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.
4. Part-time employees. — Part-time employees shall be paid not
less than at an hourly rate proportionate to the rates prescribed in
ihe foregoing sections of this Article.
5. Weekly wages above minimum not to le 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, notwithstanding any reduction in the
number of working hours of such employees.
526
6. Confkt v'ith State 1mm. — When anj State law prescribes for
any class of employees of either sex a higher minimnm wage than
that prescribed in this Article, no employee of such class of either
sex employed within that State shall be paid less than such State
law requires.
Article VI — Limitations Upon Price Increases; Prior Contracts
1. Limitations ujyon price increases. — No retail jeweler 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/of by taxes;
and/or by other costs resulting from action taken pursuant to the
National Industrial Eecovery Act and/or the Agricultural Adjust-
ment Act since June 1, 1933, and in setting such price increases retail
jewelers shall give full weight to probable increases in sales volume.
It is provided, however, that if any price on June 1, 1933, was a dis-
tress price, an equitable adjustment may be made.
2. Adjustment of fvior contracts. — Where costs of executing con-
tracts entered into before June 16, 1933, by any retail jeweler for the
juirchase of goods at fixed prices for delivery during the duration
of this Code are increased by the application of the provisions of
the National Industrial Eecovery Act and/or the Agricultural Ad-
justment Act, it is deemed equitable and promotive of the purposes
of the Act that appropriate adjustments of such contracts to reflect
such increased costs actually incurred be arrived at by mutual agree-
ment or arbitral proceedings or otherwise, and the National Retail
Jewelry Trade Council provided for in Article IX hereinafter is
constituted an agency to assist in effecting such adjustments.
Article VII — Loss Limitation Provision
1. Loss Limitation Provision. — In order to prevent mifair com-
petition against local merchants, the use of the so-called " loss leader "
is hereby declared to be an unfair trade practice. These " loss lead-
ers " are articles often sold below cost to the merchant, which means
the actual net delivered cost or current replacement cost whichever
is lower, for the purpose of attracting trade. This practice results,
of course, either in efforts by the merchant to make up the loss by
charging more than reasonable profit for other articles, or else in
driving the small merchant with little capital out of legitimate busi-
ness. It works back against the producer of raw materials on farms
and in Industry and against the labor so employed.
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
hereinafter established.
Such an allowance for labor need not be applied by retail
jewelers doing business only in communities of less than 2,500 popu-
lation (according to the 1930 Census) which are not part of a larger
trade area„
527
Provided^ haioever. That any retail jeweler may sell any article of
merchandise 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
provisions. A retail jeweler who thus reduces a price to meet a
competitor's price as above defined shall not be deemed to have vio-
lated the provisions of this Section if such retail jeweler immediately
notifies the nearest local retail jewelry trade committee as hereinafter
provided in Article IX, Section 2 (e) of such action and all facts
pertinent thereto.
2. Exceptions. — (a) Notwithstanding the provisions of the preced-
ing Section, any retail jeweler may sell at less than the prices speci-
fied above, merchandise sold as a bona fide clearance, if advertised,
marked, and sold as such; imperfect or actually damaged merchan-
dise, or bona fide discontinued lines of merchandise, 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 for their own specific
use and not for resale and not for redistribution to individuals;
merchandise sold or donated for charitable purposes or to unemploj''-
ment relief agencies.
(b) Where a bona fide premium or certificate representing a share
in a premium is given away with any article the base upon which the
minimmn price of the article is calculated shall include the cost of the
premium or share thereof.
Akticle VIII — Trade Peactices
AH retail jewelers shall comply with the following trade practices!
1. Advertising and Selling Methods. — (a) No retail jeweler shall
use advertising, whether printed, radio, or display or of any other
nature, which is inaccurate in any material particular or misrep-
resents merchandise (including its use, trade mark, grade, quality,
quantity, size, origin, material, content, or preparation) or credit
terms, values, policies, or services; and no retailer shall use adver-
tising and/or selling methods which tend to deceive or mislead the
customer.
(b) No retail jeweler shall use advertising which refers inaccu-
rately in any material particular to any competitor or his merchan-
dise, prices, values, credit terms, policies, or services.
(c) No retail jeweler shall use aclvertisnig which inaccurately lays
claim to a policy or continuing practice of generally underselling
competitors.
(d) No retail jeweler shall secretly give anything of value to the
employee 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 emploj^ee, agent, or customer which is inaccurate in any
material particular.
(e) No retail jeweler shall j)lace obstacles in the way of the pur-
chase 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.
528
(f ) Violation by a retail jeweler of the applicable state stamping
laws relating to articles made wholly or in part of gold, silver, metals
of the platinum group, or alloys thereof ; or, where there are no ap-
plicable state laws relating to said articles, violation by a retail
jeweler of the National stamping laws or of the standards of quality
approved by the United States Bureau of Standards, shall be a
violation of this code.
(g) No retail jeweler shall use the word "perfect" or any other
word or expression of similar meaning, in any way in connection
with, or as descriptive of, any diamond, ruby, sapphire, or emerald
which discloses flaws, cracks, carbon, spots, clouds, cloudy texture, or
blemishes of any sort when examined by a trained eye under a
diamond loupe of not less than 7 power,
(h) No retail jeweler shall use the word "diamond" "emerald",
" ruby ", " sapphire ", or " pearl " in selling, offering for sale, or ad-
vertising for sale any article or articles that are manufactured, pro-
duced or artificially cultured or cultivated as an imitation of, or
substitute for, any real or natural diamond, emerald, ruby, sapphire,
or pearl as defined hereafter, without using a word or words con-
spicuously and clearly portraying that the article is manufactured,
produced, or artificially cultured or cultivated, as the case may be.
DEFINITIONS
Diamond. — A mineral consisting essentially of pure carbon
crystallized in the isometric system, generally m octahedron form,
either colorless or variously tinted. Its hardness is 10 and its specific
gravity about 3.525.
Emerald. — A bright-green variety of beryl which crystallized in
the rhombohedral system, almost always in six-sided prisms. Its
color is due to the presence of chromium. Its hardness is about 7.8
and its specific gravity very nearly 2.7.
Ruhy. — The name " ruby " is given to the transparent red variety
of the mineral corundum, which is nearly pure alumina (AI2O3).
The color is due to the addition of minute quantities of metallic
oxides to the alumina. Its hardness is about 8.8 and its specific
gravity varies from 3.97 to 4.05,
Sapphire. — The name " sapphire " is ^ven to the transparent blue
variety of the mineral corundum, which is nearly pure alumina
(AlaOs). The color is due to the addition of minute quantities of
metallic oxides to the alumina. Its hardness is about 8.8 and its
specific gravity varies from 3.97 to 4.05. Sapphires may be of other
colors than blue, but in that case are commercially classed as semi-
precious stones.
Pearl. — Pearls are lustrous concretions, consisting essentially of
concentric layers of carbonate of lime interstratified with animal
membrane, found in the shells of certain mollusks, the result of an
abnormal secretory process caused by an irritation of the mantle of
the mollusk consequent on the natural intrusion into the shell of some
foreign body, as a grain of sand, an ^gg of the mollusk itself, or
perhaps some cercarian parasite, or an excess of carbonate of lime
m the water.
(i) No retail jeweler shall use the words " real ", " genuine ", " nat-
ural ", or any other words of similar meaning, in any way in con-
529
nection with, or as descriptive of. any article or articles that are
manufactured, produced, or artificially cultured or cultivated, as an
imitation of, or substitute for, any precious or semiprecious stones
or pearls.
(j) No retail jeweler selling jewelry to the ultimate consumer shall
refer his customers to the establishment of another retailer with the
suggestion that the customer make a selection but no purchase, thus
parasitically using the facilities of the latter retailer, such as stock
and salesmen's time, to create sales for himself b}- offering and deliv-
ering the identical goods to his customers at greater profit to him-
self, because others bear a substantial part of the cost of his effecting
such sale.
(k) No retail jeweler shall, in the retail jewelry trade, represent
himself as other than a retailer.
(1) No retail jeweler shall issue price lists and/or catalogues the
tendency of which, in connection with the offering of discounts, is
to give to the consumer the impression that the prices are bargain
prices, when such in fact is not the case.
(m) No retail jeweler shall grant discounts, rebates, refunds, com-
missions, or credits, whether in the form of money or otherwise, and
shall not extend to certain purchasers special services or privileges
not extended to all purchasers (individuals directly connected with
his establishment excepted, and then only when merchandise is for
their personal use and not for resale) on like terms and conditions.
Nothing in this section shall be construed to prevent price differ-
ential's from being allowed on the basis of a sale in quantity, or such
other factors as the Administrator shall deem proper, provided such
differentials do not exceed the savings actually enjoyed by the seller
by reason of selling and handling the larger quantities.
(n) No retail jeweler shall sell or offer for sale directly or through
an agent, at auction, in the retail jewelry trade, any jewelry except
for the purpose of legitimate liquidation, or in case of dire need, in
either of which cases an application must be made to and approved
by the local Retail Jewelry Trade Committee. In such instances, no
special purchases of jewelVy shall be made for the purpose of this
auction and all jewelry offered at auction must be stock legitimately
owned in the natural course of the conduct of said Retail Jewelry
Business. It shall be further required that an accurate inventory of
jewelry to be auctioned be filed with the local retail jewelry trade
committee at least fifteen days before the auction, or as otherwise
provided by the local or state laws.
(o) No retail jeweler shall advertise or offer to repair watches or
clocks at a uniform price irrespective of the cost of such repairs.
(p) No retail jeweler shall sell, offer for sale, or advertise for sale,
rebuilt watches unless such articles are clearly designated as such.
(q) No retail jeweler shall appraise any article of jewelry unless
such appraisal is in writing over his signature.
2. N.R.A. Label. — No retail jeweler shall purchase, sell, or ex-
change any merchandise manufactured under a Code of Fair Com-
petition which requires such merchandise to bear an N.R.A. label,
unless said merchandise bears such label. Anj^ retail jeweler right-
fully possessing the insignia of the N.R.A. who has in stock or pur-
chases similar merchandise which has been manufactured before the
530
effective date of the Code of Fair Competition requiring such mer-
chandise to bear an N.R.A. label may attach thereto the N.E..A.
insignia.
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 competitive
basis with goods not so produced, the following provisions of this
Section will be stayed for ninety (90) days, or further at the dis-
cretion 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 Ad-
ministrator 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 para-
graph (b) 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 retail
jeweler shall knowingly buy or contract to buy any merchandise
produced in whole or in part in a penal, reformatory, or correc-
tional institution. After May 31, 1934, no retailer shall knowingly
sell or offer for sale such merchandise. Nothing in this Section, how-
ever, shall affect contracts, which iho, 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 Janu-
ary 19, 1929, being Public No. 669 of the 70th Congress and entitled
"An Act to Divest Goods, Wares, and Merchandise Manufactured,
Produced, or Mined by Convicts or Prisoners of their Interstate
Character 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.
4. Company scrip. — The following provisions of this Section 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 implications
of these provisions. Said Committee may make recommendations
based upon its investigations, and such recommendations shall, upon
approval by the President of the United States, become effective in
the place of these provisions :
(a) No retail jeweler shall accept as payment for merchandise
any nonnegotiable scrip, company checks, or other evidence of wage
payment issued by any individual or private profit organization m
payment of wages or as an advance upon unearned wages. A
negotiable instrument issued by any individual or private profit or-
ganization in payment of wages shall be accepted only if it is pay-
able 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
organization are rendered temporaril}^ unavailable due to the closing
b}'^ state or federal order of the bank in which such funds are
deposited.
531
(b) No retail jeweler shall extend credit in the form of goods,
monej', or services to anj^^ person other than its own employees en-
gaged exclusively 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.
Akticle IX — ^Administration
1. Retail Jewelry Trade Authority. — The Retail Jewelry Trade
Authority shall consist of the Administrator or his Deputy, or not
more than three members appointed by the Administrator, who shall
advise and assist the Administrator or his Deputy. Members of the
Retail Jewelry Trade Authority shall be members, without vote, of
the National Retail Jewelry Trade Council, provided for hereinafter,
and without expense to said CounciL
2. National Retail Jewelry Trade GoutwU'. —
(a) Composition. — To effectuate further the policies of the Act, a
National Retail Jewelry Trade Council hereinafter referred to aa
the Code Authorit;^ is hereby desi^ated to cooperate with the Ad-
ministrator as a planning and fair-practice agency for the retail
jewelry trade. This Code Authority shall consist of 5 representa-
tives of the retail Jewelry trade, designated by a fair method to be
approved by the Administrator. Where more than one national
trade association each represents a portion of a single division of the
retail jewelry trade, the Administrator shall, for the purpose of
establishing the membership of the National Retail Jewelry Trade
Council in the first instance, determine whether such associations are
truly representative and what shall be the number and proportionate
vote of such associations uj^on the Council; after the initial estab-
lishment of the Council such decisions shall be made by the Council
subject to an appeal to the Administrator. The National Retail
Jewelry Trade Coimcil may issue regulations providing for the local
administration of this Code through cooperation with the local
Retail Trade Councils set up under the supervision of the National
Retail Trade Council, such regulations to be subject to the approval
of the Administrator.
(b) Recovmiendations. — The National Retail Jewelry Trade Coun-
cil may from time to time present to the Administrator recommenda-
tions (including interpretations), based on conditions in the retail
jewelrj'^ trade, which will tend to effectuate the operation of the pro-
visions of this Code, and the policy of the National Industrial Recov-
ery Act. Such recommendations shall, upon approval by the Ad-
mmistrator, become operative as part of this Code.
(c) Investigations. — The Code Authority is empowered and set
up to cooperate with the Administrator to make investigations as
to the functioning and observance of any provision of this Code,
at its own instance, on request of the Administrator, or on complaint
by any persons affected, and to report the same to the Administrator.
(d) Reports. — The Code Authority may require such reports as
may be necessary to administer this Code, in such form as may be
approved by the Administrator. Any reports required by the Code
Authority shall be submitted to an impartial agency designated by
532
the Administrator, and not a member of the industry, and shall not
be revealed to an^^ member of the industry, except in summary ; pro-
vided, however, that such information shall be available to the
Administrator upon request; and provided further, that such infor-
mation may be divulged if necessary to facilitate the administration
of this Code. In addition to information to be submitted to the Code
Authority, there shall be furnished to the Administrator such sta-
tistical iniormation as the Administrator may deem necessary for the
administration of this Code.
(e) Local Committees. — The National Retail Jewelry Trade Coun-
cil 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 insofar as it relates to the retail jewlery
trade.
(f^ The expenses of the National Retail Jewelry Trade Council
and its local committees shall be equitably assessed and collected from
retail jewelers, subject to the approval of the Administrator. This
assessment shall not exceed the sum of three dollars per annum per
employee. For this purpose the number of employees of any retail
jewelry establishment shall be the average annual number of per-
sons engaged in the retail jewelry trade in its establishment in any
capacity, receiving compensation for his services, irrespective of
the nature or method of payment of such compensation.
3. Interpretations. — The Administrator may from time to time,
after consultation with the National Retail Jewelry Trade Council,
issue such administrative interpretations of the various provisions of
this Code relating to the retail jewelry trade as are necessary to
effectuate its purposes, and such interpretations shall become opera-
tive as part of this Code, unless the Administrator shall otherwise
specify.
4. Eicceptions in cases of unusual or undue hardship. — Where the
operation of the provisions of this Code imposes an unusual or undue
hardship upon any retail jeweler or group of retail jewelers, such
retail jewelers or group of retail jewelers 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 hear-
ings as he may deem necessary, grant such exception to or modifica-
tion of the provisions of this Code as may be required to effectuate
the purposes of the National Industrial Recovery Act.
Aeticle X — General
1. Membership in associations. — Membership in the national retail
associations represented upon the National Retail Jewelry Trade
Council, or in any affiliated association, shall be open to all retail
jewelers of that portion of the retail jewelry trade which said asso-
ciations respectively represent, and said associations shall impose no
inequitable restrictions upon admission to membership therein.
2. Prohibition against monopolies. — The provisions of this Code
shall not be interpreted or applied to promote monopolies or monop-
olistic practices or to eliminate or oppress small enterprises or to
discriminate acainst them.
533
3. Prohibition against use of subterfuge. — No retail jeweler shall
use any subterfuge to frustrate the spirit and intent of tliis 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.
4. Right of President to cancel 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.
5. Modifications and sufpleiixentary provisions. — Such of the pro-
visions 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
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 Recovery Act.
6. Expiration. — This Code shall continue in effect until 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 Section 1 of the National Indus-
trial Recovery Act has ended.
7. Information to be furnished governtnent agencies. — In addi-
tion to information required to be submitted to the National Retail
Jewelry Trade Council, there shall be furnished to Government
agencies such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the National
Industrial Recovery Act.
Approved Code No. 142
Registry No. 1631-U
o
Approved Code No. 143
CODE OF FAIR COMPETITION
FOR THE
WOOL FELT MANUFACTURING INDUSTRY
As Approved on November 27, 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 Wool Felt Manufacturing Industry,
and hearings having been held thereon and the Administrator hav-
ing rendered his report containing an analysis of the said code of
fair competition, together with 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 adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said coda
of fair competition be and it is hereby approved.
FRANia^IN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
A dniin is t rat or.
The White House.
November £7, 1033.
(535)
23792° 244-111 33
November 20, 1933.
The President,
The White House.
Sir: This is the report on the Code of Fair Competition for the
Wool Felt Manufacturing Industry as proposed by the United States
Felt Manufacturers Institute.
The hearing was conducted in Washington, D.C., on November 15,
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 representatives of
the industry complying with the requirements as representing 100
percent of the volume of business.
DESCRIPTION OF INDUSTRY
The Wool Felt Manufacturing Industry is one of the numerous
examples of the differences existing among the various subdivisions
of the textile industry. The preparatory stages of felt manufac-
turing closely follow the same processes as the manufacture of cloth-
ing materials and other woven wool goods. The first break in the
similarity of operations occurs at the carding machine. The felt
manufacturer takes the full-width webs of fibre from the card and
builds these into a mattresslike formation. When the approximate
finished weight is obtained, the entire mass is steam saturated. Oscil-
lating and vibrating plates then tangle the fibres, making a matted
layer. At this stage the material lacks strength, but may be dried
and used for a certain limited number of purposes, mainly insulation
and sound deadening.
The next manufacturing stage is fulling, which is the true felting
process. A lubricating agent, such as soap, is introduced and this,
combined with controlled heat and moisture, shrinks the fabric. The
operation is performed in a fulling mill, which is a large wooden
bowl equipped with vibrating hammers. After fulling, the fabric is
scoured, dyed if color is required, and then dried and finished.
The thickness of a piece of finished felt may range from one
thirty-second inch to three inches, while it may vary in weight from
three ounces to 65 pounds per square yard. In the same manner, the
price range per square yard is from ten cents to $150.00, while on a
poundage basis, it may vary from 25 cents to $5.00. As may be
judged from these extreme variations in manufacturing possibilities,
the use of the finished product is equally varied.
Felt is used in some way by practically all industries, either for
mechanical purposes during the process of manufacturing or as a
component part of a finished article.
The industry is not large and at the present time is composed of 13
firms employing approximately 1,600 workers. Since 1928 the indus-
try has suffered a severe contraction in sales. In that year, sales
(536)
537
amounted to l7i/2 million pounds, whicli have declined to slightly
more than 5 million pounds at the present. During this period the
productive capacity of the industry has remained constant at 24
million pounds.
LABOR PROVISIONS
The industry proposes to pay a minimum wage of 35 cents per
hour. Hours of labor are limited to 40 hours per week and eight
hours in any one day. A tolerance of two hours per day will be
allowed for certain employees such as hardeners, fullers, washers,
extractors, and dryers who will receive time and one third compen-
sation for the excess hours worked.
This flexibility is to prevent any possible spoilage of materials
during wet or chemical processes.
ADMINISTRATION
The provisions for the administration of this code are capable of
providing the N.R.A. and the "Wool Felt Manufacturing Industry
with su&cient data to recommend any modifications or amendments
that may be indicated by experience.
CONCLUSION
I find that the code complies in all respects with the pertinent
provisions of Title I of the National Industrial Recovery Act,
including without limitation, subsection (a) of Section 7, and sub-
section (b) of Section 10 thereof.
The United States Felt Manufacturers Institute is duly represen-
tative of the Wool Felt Manufacturing Industry and the bylaws of
this association provide no inequitable restriction upon membership.
Accordingly, I recommend the approval of the Code of Fair Com-
petition for the Wool Felt Manufacturing Industry.
Respectfully submitted.
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
WOOL FELT MANUFACTURING INDUSTRY
Article I — Ptjrposes
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 Wool Felt Manufacturing Industry, and
shall be the standard of fair competition for such industry and shall
be binding upon every member thereof.
Article II — Definitions
1. The term " wool felt ", as used herein, is defined to mean a non-
woven material composed principally of wool or wool and cotton,
manufactured by a hardening and fulling process.
2. The term "industry", as used herein, is defined to mean the
manufacture or original sale of wool felt, whether as a final process
or as a part of a larger or further process, and/or the preparation of
wool felt for use.
3. 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.
4. The term " employer ", as used herein, includes anyone by whom
any such employee is compensated or employed.
5. The term " member of the industry " includes anyone engaged
in the industry as above defined, either as an employer or on his own
behalf.
6. The term "Institute", as used herein, is defined to mean the
United States Felt Manufacturers Institute, or its successor.
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 ot
Title I of said Act.
Article III — Hou
RS
1. No employee, except executives and those engaged in a man-
agerial capacity receiving $35 per week or more, outside salesmen,
and watchmen, and except as hereinafter provided for shall be per-
mitted to work in excess of forty (40) hours in any one week or
eight (8) hours in any 24-hour period.
2. Repair and maintenance crews, electricians, engineers, firemen,
and shipping and outside crews may work a tolerance of 10% per
week in excess of the aforesaid maximum hours : provided that time
and one third shall be paid for the excess hours so worked.
(538)
539
3. The maximum hours fixed in the foregoing section shall not
apply to any employee on emergency maintenance or emergency re-
pair work involving breakdowns or protection of life or property,
but in any such special case at least time and one third shall be paid
for hours worked in excess of the maximum hours herein provided.
Emergency hours worked shall be reported monthly to the Code
Authority.
4. Hardeners, fullers, washers, extractors, and dryers may work a
tolerance of two (2) hours per day in excess of the aforesaid maxi-
mum hours per day; provided that time and one third shall be paid
for the excess hours so worked, and provided, further, that the total
amount of excess hours worked per week by such employees of any
employer shall not exceed 10% of the total man hours (exclusive of
such excess hours) worked per week by all productive employees of
such employer.
Article IV — Wages
1. No employee shall be paid at less than the rate of 35^ 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. There shall be an equitable adjustment of the wages of em-
ployees receiving above the minimum herein prescribed, to the end
that, so far as may be equitable, the differentials which now exist
between the wage rates paid to skilled workers and those paid to un-
skilled labor shall be maintained.
4. Nothing contained in Article IV or Article V herein shall be
construed to reduce the wages or hours of labor for employees
whose wages or hours of labor are established for specific projects
by competent governmental authority, acting in accordance with
the law, or whose wages or hours of labor are established by labor
agreements now in force.
Article V — General Labor Provisions
1. No person under sixteen (16) years of a^e shall be employed
in the industry, nor anyone under eighteen (18) years of age at
operations or occupations hazardous m nature or detrimental to
health. The Code Authority shall submit to the Administrator
before January 1, 1934, a list of such occupations which, upon his
approval, shall be deemed hazardous in nature or detrimental to
health within the meaning of this section. In any State an em-
ployer shall be deemed to have complied with the age provisions of
this section, 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.
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.
540
8. 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 on employers regulating
the age of employees, wages, hours of work, or health, jfire, 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 full copies of
this Code.
8. To prevent any improper speeding up of work (stretch-outs),
no employee in the industry shall be required to do any work in
excess of the practice as to the class of work of such employee pre-
vailing on July 1, 1933, unless such increase is submitted to and
approved by the Administrator.
Article VI — Administration
1. To effectuate further the policies of the Act, a Code Authority
is hereby designated to cooperate with the Administrator in the ad-
ministration of this Code. The Code Authority shall consist of five
representatives of the industry elected by a fair method of selection,
to be approved by the Administrator, and of not more than three
members (without vote) appointed by the Administrator. Such
agency may present to the Administrator recommendations based on
conditions in the industry as they may develop which will tend to
effectuate the operation of the provisions of this Code and the policies
of the Act. Such recommendations, when approved by the Adminis-
trator, shall have the same force and effect as any other provision of
this Code.
2. Such agency is also set up to cooperate with the Administrator
in making investigations as to the functioning and observance of any
provisions of this Code, at its own instance or on complaint by any
person affected, and to report the same to the Administrator.
3. Any member of the industry may become entitled to participate
in the endeavors of the Institute relative to the administration of,
revisions of, and additions to this Code (a) by becoming a member
of the Institute and paying the dues and assessments thereof, or (b)
by paying to the Institute its equitable pro rata share of the expenses
of administering the Code (such pro rata share to be determined on
the basis of labor employed). The Institute shall defray the expenses
incurred by the Code Authority.
Article VII — Reports and Statistics
1. With a view to keeping the President informed as to the observ-
ance or nonobservance of this Code of Fair Competition, and as to
whether the industry is taking appropriate steps to effectuate the
declared policy of the Act, each member of the industry will furnish
duJj' certified reports to such certified public accountants as the Code
541
Authority may designate. These reports sliall be in substance and
in such form as the Code Authority may require. Except as other-
wise provided under the Act, reports furnislied in accordance with
this Code shall be confidential, and that data of one employer shall
not be rcA'ealed to any other employer ; provided, however, that for
the purpose of enforcing this Code the Code Authority, through its
duly authorized representatives, shall have access to such portions of
said reports as are pertinent to such enforcement.
2. Every member of the industry shall furnish to any govern-
mental agency or agencies designated by the President, such statis-
tical information as the President may, from time to time, deem
necessary for the purposes recited in Section 3 (a) of the Act; and
any reports and other information collected and compiled by the
Code Authority, as heretofore provided, shall be transmitted to
such governmental agencies as the President may direct.
Article VIII — Unfair Trade Practices
For all purposes of the Code the acts described in this Article
shall constitute unfair practices. Any member of the industry who
shall directly, or indirectly through any officer, employee, agent or
representative, knowingly use, employ, or permit to be employed, any
01 such unfair practices shall be guilty or a violation of the Code.
1. No member of the industry shall use advertising (whether
printed, radio, display or of any other nature) or other representa-
tion which is inacurate in any material particular or in any way
misrepresent any commodity (including its use, trade mark, grade,
quality, quantity, origin, size, substance, character, nature, finish, ma-
terial content or preparation or other specification thereof) or credit
terms, values, poncies, services, or the nature or form of the business
conducted.
2. No member of the Industry shall give, permit to be given, or
offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business oi the emploj^er of such emploj-ee
or the principal of such agent without the knowledge of such em-
ployer or principal, provided that nothing herein shall prohibit the
free and general distribution of articles used solely for advertising.
3. No member of the Industry shall withhold from or insert in
any quotation or invoice any statement that makes it inaccurate in
any material particular.
4. No member of the Industry shall secretly offer or make any
jjayment or allowance of a rebate, refimd, commission, credit,
unearned discount or excess allowance, whether in the form of
money or otherwise, for the purpose of influencing a sale, nor shall
a member secretly extend to any customer any special service or
privilege not extended to all customers of the same class.
5. No member of the Industry shall attempt to induce the breach
of an existing contract between a competitor and his emplo3'ee or
customer or source of supply; nor shall any such member interfere
with or obstruct the performance of such contractual duties or serv-
ices. Nothing in this rule shall qualify Section 7 (a) of the National
Industrial Recovery Act or obstruct the free exercise of the rights of
collective bargaining therein guaranteed.
542
6. No member of the industry shall repudiate a contract entered
into in good faith when the purpose of such repudiation is to create
for such member an unfair price advantage.
Article IX — Monopolies
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices or to eliminate or oppress small enter-
prises or to discriminate against them.
Article X — Modification
1. 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 Act, from time to time, to can-
cel 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. Such of the provisions of this Code as are not required by the
Act to be included herein may, with the approval of the President
of the United States, be mcxjified or eliminated as changed circum-
stances or experience may indicate. This Code is intended to be a
basic code, and study of the trade practices of the industry will be
continued by the Code Authority with the intention of submitting
from time to time additions to this Code applicable to all employers
in the industry, and supplemental codes applicable to one or more
branches of the industry ; such supplemental codes, however, to con-
form to and be consistent with the provisions of this Code as now
constituted or hereafter changed.
Article XI — General
1. After notice to members of the industry, the Code Authority
may submit recommendations with respect to restrictions on selling
below cost, the disposition of substandard merchandise, the publica-
tion and listing of prices, and the establishment of standarcf selling
terms for the industry; such recommendations, when approved by
the Administrator, to have the same force and effect as other pro-
visions of this Code.
2. The Code Authority shall secure current information concerning
the competition in domestic markets of imported 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 pro-
duction, 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 National Industrial Recovery Act and petition for suit-
able restrictions on the importation of such felt products.
Article XII — Effective Date
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 143.
Registry No. 232-1-04.
O
Approved Code No. 144
CODE OF FAIR COMPETITION
FOR THE
PAPER MAKING MACHINE BUILDERS' INDUSTRY
As Approved on December 7, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Eecovery Act, approved June 16, 1933, for my approval of a Code of
Fair competition for the Paper Making Machine Builders' Industry,
and hearings having been held thereon and the Administrator hav-
ing rendered his report containing an analysis of the said code of
fair competition, together with 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 tho
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 dminis trato r.
The White House,
December 7, 1933.
(543)
25685° 244-144 33
November 23, 1933.
The PREsroENT,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Paper Maldn^ Machine Builders' Industry, the hearing having been
held in Washington, October 12, 1933, in accordance with the provi-
sions of the National Industrial Kecovery Act.
PROVISIONS AS TO HOURS AND WAGES
Under this Code hours for work are limited to forty (40) per week
with a tolerance of ten (10) percent for employees engaged in care,
protection, and maintenance of plant and machinery and employees
engaged in stock keeping and shipping. Under conditions of sea-
sonal or peak demand a maximum of forty-eight (48) hours per
week can be worked during not over eight (8) weeks in a six (6)
months' period. Time and one half is paid for this overtime. These
limitations of hours do not apply to executives, their immediate
assistants, heads of administrative departments, and field men, who
are receiving not less than thirty-five (35) dollars per week. Ac-
counting, clerical, office service, earning less than thirty-five (35)
dollars per week are limited to forty (40) hours per week on a
monthly average.
Minimum wages have been set at forty (40) cents per hour for
employees engaged in shop operations, excepting duly indentured
apprentices who are limited to five (6) percent of the factory em-
ployees. Provision also is made for employment on light work at
wages below the minimum, of those who because of age or mental or
physical handicaps are certified for such employment by the United
States Department of Labor.
The minimum wage paid to any other employees shall be not less
than fifteen (15) dollars per week, except in the case of office boys
and girls who may be paid not less than eighty ^80) percent of the
minimum wage. They are not to exceed five (5) percent of the
office force.
CHILD LABOR
The minimum age for employment is set at sixteen (16) years,
with eighteen (18) years the minimum where operations or occupa-
tions are hazardous or detrimental to health.
ECONOMIC EFFECT OF THE CODE
This industry has suffered severely from the depression. How-
ever, since operating under the President's Reemployment Agree-
ment, employment has increased approximately 50 percent, more
than 1,000 employees having been added. Pay rolls through reem-
ployment and wage adjustments have been increased proportionally
since June.
(544)
545
The industry is engaged in the design, building, and sale of com-
plete machines used in the manufacture of paper and paper board.
There are ten (10) companies in this industry and while sales de-
clined from $17,000,000 in 1929 to an estimated $3,500,000 in 1933,
wage rates in line with the Code provisions generally have been
maintained.
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
Paper Making Machine Builders' 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. Johnsox,
A dm inistrator.
CODE OF FAIR COMPETITION
FOR THB
PAPER MAKING MACHINE BUILDERS' INDUSTRY
Abticle I — Purposes
To effect the policies of Title I of the National Industrial Recovery
Act, this Code is submitted as a Code of Fair Competition for the
Paper Making Machine Builders' Industry, and upon approval by
the President, its provisions shall be the standards of fair compe-
tition for such industry and shall be binding upon every member
thereof.
Article II — Definitions
Section 1. The term " Paper Making Machine Builders ' Industry "
as used herein shall mean the building and sale by builders of com-
plete paper making or paper board making machines.
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 compen-
sation.
Sec. 3. The term "employer" as used herein includes anyone for
whose benefit such an employee is so engaged.
Sec. 4. The term " member of industry " includes any builder of
paper-making machines who shall be subject to this Code.
Sec. 5. Tho term " Member of the Code " includes any member of
the industry- who shall expressly signify assent to this Code.
Sec. 6. The term "Administrator " shall mean the Administrator
of the National Industrial Recovery Act.
Article III — Hours
Section 1. No employer shall employ any employee engaged in
the making of the products of the industry, and 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; provided
that there snail be a tolerance of ten (10) percent for employees en-
gaged in the care, protection, and maintenance of plant and ma-
chinery and employees engaged in stock keeping and shipping, time
and one half being paid for all time worked in excess of eight (8)
hours per day or forty (40) hours per week.
Sec. 2. The above limitations of hours shall not apply to con-
ditions of seasonal or peak demand, for any department or depart-
ments, which create an unusual and temporary burden for production
(546)
547
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 any eight (8) weeks in any
calendar six (6) months' period, beginning October 1, 1933, and each
April 1 and October 1 thereafter ; provided that in such special cases
at least 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 any one
(1) week.
Sec. 3. The above limitations of hours shall not apply to em-
ployees on emergency maintenance or repair work, or to very special
cases, where restrictions of hours of highly skilled workers would
unavoidably reduce or delay production, but in any such special case
at least 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 any one
(1) week.
Sec. 4. The above limitations of hours shall not apply to execu-
tives, their immediate assistants, heads of administrative depart-
ments, factory and office supervisors, technical engineers, outside
service men, and field salesmen (provided that no person receiving
less than thirty-five (35) dollars per week shall be considered to come
under any of the foregoing exempted classifications in this section),
and watchmen, provided that the maximum hours of labor for watch-
men shall not exceed fifty-six (56) hours in any one week performed
in six (6) days out of any seven (7).
Sec. 5. No employer shall work any accounting, clerical, office
service, office sales, express or delivery, or other employee not
described in Sections 1, 3, and 4 of this Article more than forty (40^
hours a week on a monthly average, nor more than forty-eight (48)
hours in any one week.
Sec. 6. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours prescribed for each
week and day whether employed by one or more employers.
Article IV — Wages
Section 1. The minimum wage that shall be paid by any employer
to any employee engaged in the making of the products of the indus-
try, and in labor operations directly incident thereto, shall be forty
(40) cents per hour.
Sec. 2. This Article IV 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.
Sec. 3. The minimum wage that shall be paid by any employer,
to any other employee shall not be less than fifteen dollars ($15.00)
per week; provided, however, that office boys and girls may be paid
not less than eighty (80) percent of the minimum wage established
in Section 2, but the total number of such office boys and girls shall
not exceed in any calendar month five (5) percent of the total number
of office employees employed by such employer during such month
but each employer shall be entitled to two (2) such employees.
Sec. 4. Nothing in this Article IV shall apply to, or affect, any
employee apprenticed to any employer by an indenture made in
pursuance of the laws of any state of the United States, or by a
548
written contract under any apprentice system established and main-
tained by an employer, provided that each indenture and contract
shall be filed with the Code Authority, and provided further that
this exception shall apply to an employee only during the period
that he is receiving less than the minimum rate; provided further
that such apprentices employed by any employer shall not exceed
5% of the total number of factory employees employed by such
employer, but each employer shall be entitled to employ two such
apprentices.
Sec. 5. Where not already made, equitable adjustments of rates of
pay shall be made for employees in higher classifications than those
receiving the minimum wage, and in no case shall they be decreased
as a result of this adjustment of hours.
Sec. 6. No employer shall change the classification of occupation
of any employee as existing on June 16, 1933, for the purpose of
defeating the purposes of the Act.
Sec. 7. A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on light work at
a wage below the minimum established by this 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 hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.
Article V — 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 opera-
tions or occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator before Jan-
uary 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 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.
Article VI — 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 a Code Committee of
three members appointed by the Board of Directors of the Paper
Machine Builders' Association and one or more nonvoting members
appointed by the Administrator in his discretion.
Sec. 3. In order that the Code Authority shall be at all times
truly representative of the industry and in all respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem necessary, 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.
549
Sec. 4. Any member of the industry is eligible for membership
in the Paper Machine Builders' Association and there shall be no
inequitable restrictions on such membership.
Sec. 6. All members of the industry shall be entitled to share the
benefits of its activities, and all who accept such benefits shall bear
their proportionate share of the expense of maintaining the Code
Authority and its activities.
Sec. 6. With a view to 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 the declared policy
of this Act, each member of the industry, if and when required b^
the Administrator, shall prepare and file with such person or organi-
zation as the Code Authority may designate, and at such times and
in such manner as the Code Authority may prescribe, statistics as to
number of employees, wage rates, employee earnings, and hours of
work, which information shall be confidential, except that for the
purposes of administering this Code, and subject to the approval of
the Administrator, the Code Authority may have access to such
information.
Sec. 7. In addition to the information required to be submitted
to the Code Authority, there shall be furnished to the Government
agencies such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act.
Article VII — Unfair Trade Practices
Section 1. The secret payment of or allowance of rebates, refunds,
credits, subsidies, or unearned discounts, whether in the form of
money, material, or otherwise, is an unfair trade practice.
Sec. 2. The willful interference by any member of the industry by
any means or device whatsoever with any existing contract between
a member of the industry and his seller or a purchaser, is an unfair
trade practice.
Sec. 3. The defamation of a competitor by words or acts which
falsely impute to him dishonorable business conduct, inability to per-
form his contracts, questionable credit standing, or which misrepre-
sent or falsely disparage the grade, quality, or prices of his goods, is
an unfair trade practice.
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 interference, restraint, or coercion of employers of laboi ,
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 b«
required as a condition of employment to join any company union oy
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.
550
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 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 limitations, 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. Within each State, members of the 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.
Sec. 6. Such of the provisions of this Code as are not required to
be included therein by the National Industrial Recovery Act may
with the 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 may be submitted for the approval of the Presi-
dent to prevent unfair competition in price and other unfair and
destructive competitive practices and to effectuate the other purposes
and policies of Title I of the National Industrial Recovery Act con-
sistent with the provisions hereof.
Sec. 7. All employers shall post complete copies of this Code in
conspicuous places accessible to employees.
Article IX — Effective Date and Termination
This Code shall become effective on the second Monday after its
approval by the President of the United States and shall cease to
be operative when Title I of the National Industrial Recovery Act
shall cease to be in effect.
Approved Code No. 144.
Registry No. 1399-23.
O
Approved Code No. 145
CODE OF FAIR COMPETITION
FOR THE
FURNITURE MANUFACTURING INDUSTRY
AS APPROVED ON DECEMBER 7, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been July 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 Furniture Manufacturing Industry, and
hearings having been held thereon, and the Administrator having
rendered his report containing an analysis of the said Code of Fair
Competition, together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the 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 said Act have
been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt the findings and approve the report and recom-
mendations of the Administrator and do order that the said Code
of Fair Competition be, and it is hereby, approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
A dminis trator.
The White House,
December 7, 1933.
(551)
25689" 244-14-0 33
No\t:mber 18, 1933.
The President,
The WMte Home.
Sir : This is a report on the Code of Fair Competition for the Fur-
niture Manufacturing Industry in the United States as revised after
a hearing conducted in Washington, D.C., on October 9, 1933, in ac-
cordance with the provisions of the National Industrial Kecovery
Act.
PROVISIONS OF THE CODE AS TO HOURS AND WAGES
The Code provides for an average forty-hour week and an eight-
hour day. Though a maximum work week of forty-five (45) hours
is established to provide for seasonal production requirements, all
hours worked in excess of eight in any one day must be paid for
at the rate of time and one half with certain exceptions. Hourly
tolerances are provided for emergency repair crews, firemen, engi-
neers, shipping crews, watchmen, truck drivers, designers, traveling
salesmen, and persons engaged in executive or supervisory capacities,
who earn $35.00 a week or more.
A minimum hourly rate of 34 cents is provided for all employees
except those in the southern states where the minimum rate is 30
cents an hour, and for employees in factories, the output of which
consists of more than 90% of chairs with double woven cane seats,
who shall be paid at the rate of not less than 30 cents an hour.
Apprentices for a period not to exceed four months shall be paid
not less than 80% of the minimum rates, but the total number of
apprentices is limited to 5% of the total number of factory employees
in any establishment. Factory watchmen, gate watchmen, yard
men, and vard lumber handlers may also be paid at the rate of
not less than 80 percent of the minimum rates, but the total of
such employees is limited to 5 percent of the total number of fac-
tory workers. The minimum rates are established regardless of
whether the emplovee is compensated on a time rate, piecework,
or other basis, and'^it is provided that no employee shall be paid
a wage rate which shall yield a less wage for a week of forty hours
than employees were receiving for the same class of work for the
normal working week of forty-eight hours or more immediately
preceding June 16, 1933.
The minimum wage rates apply only to employees engaged on
the single daylight shift occurring between the hours of '[A.M. and
5 PM. Employees working on a shift, any part of which occurs
after 5 P.M. or' before 7 A.M. shall be paid at the rate of not less
than one and one half times the rate paid employees engaged m the
daylic^ht shift for the same class of work. This provision does not
become effective until thirty days after the approval of this Code.
Employees shall not be reclassified for the purpose of defeating
the provisions of the Act or of the Code. .o u n
No person under 16 shall be employed and no person under 18 shall
be employed in hazardous occupations.
(552)
553
ECONOMIC EFFECTS OF THE CODE
The Furniture Industry is a highly competitive one and the re-
turn upon capital invested has been low even in the most prosperous
times. In 1928, which probabh^ could be called an average year,
the profits were 3.42 percent of the sales and 4.07 percent on capital
invested. Since 1928 there has been a steady decline in the industry,
and the average operating loss in 1932, based on net sales, was 20
percent. However, the response of the industry to the President's
Reemployment Agreement and its presentation of this Code has dem-
onstrated a splendid spirit of cooperation with the purposes of the
National Industrial Recovery Act.
Available statistical data indicate that because of the provisions
of the Code reducing the number of hours that employees may be
worked, the industry will absorb all of the workers normally em-
ployed in factories now in operation, and, in addition, a very large
proportion of the furniture workers who have been unemployed as
a result of the closing of several hundred plants in the past few
years.
In June 1933 more than 58 percent of the employees in northern
factories and 68 percent of employees in southern factories, more
than 54.000 workers in all, earned less than the minimum rates
established by the Code. The increase in Avages that these em-
ployees will receive in many cases amounts to more than twice the
wages that they have heretofore been receiving. Adjustment of
salaries of those receiving more than the prescribed minimum- wao-e
rates will increase the salaries of approximately 36,000 workers. '^
FINDINGS
The Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertment 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
Furniture 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 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 dimnistrator.
CODE OF FAIR COMPETITION
FOR THE
FURNITURE MANUFACTURING 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 Furniture Manufacturing Industry, and
upon approval by the President, shall be the standard of fair com-
petition for the Industry, and shall be binding upon every member
thereof.
Article II — Definitions
1. The term " Industry ", as used herein means the manufacture
or production for sale of products, other than mattresses, pillows, and
box springs, commonly known as " household furniture ",^ whether
used in the home or elsewhere ; wood office chairs, wood office desks,
and wood office tables, parlor frames, chairs in the white, furniture
parts made of wood, and other unfinished household furniture ; pro-
vided, however, that organizations or groups of manufacturers rep-
resenting kinds or types of furniture or furniture parts not specifi-
cally named herein, may become parties to or be exempted from this
Code upon approval by the Administrator.
The term " furniture parts made of wood " as used in the first
paragraph of this article, means wood parts for furniture where the
process of manufacture has advanced so far that the product can be
used only in the production of furniture, but not including hardwood
dimension stock nor plywood, as defined in the Code for the Lumber
and Timber Products Industry, and for sale as such.
2. The terms '■'• President ''\ "ylc?^ ", and '■''Administrator'''' as used
herein shall mean respectively the President of the United States,
the National Industrial Recovery Act, and the Administrator oi
Title I of said Act.
3. The term " manufacturer ", as used herein, includes anyone en-
gaged in the industry as above defined, either as an employer or on
nis own behalf.
4. The term " employee ", as used herein, includes any person
engaged in the industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
compensation.
(555)
556
6. The term " employer ", as used herein, includes anyone by whom
any such employee is compensated or employed.
6. The term " furniture ", as used herein, means any product of the
Industry.
ARTrci.E III — Hours
1. No employee in the industry shall be permitted to work in excess
of an average of forty (40) hours per week during the period prior
to April 1, 1934, and each six months' period thereafter, but not more
thiiii forty-five (45) hours in any one week, provided that all hours
worked in excess of eight (8) in any day shall be paid for at one
and one half times the regularly hourly rate, except as follows:
(a) No employee in the industry shall be permitted to work in
excess of forty (40) hours per week\luring the period prior to Janu-
ary 1, 1934, except as othervWse provided in paragraphs (b), (c),
(d), (e), and (f) of this Article.
(b) A tolerance of twenty-five percent in the hours specified
above shall be permitted in any week for emergency maintenance
and emergency repair crews, provided that no suA employees shall
be permitted to work in excess of an average of forty hours per
week in each two weeks' period.
(c) A tolerance of ten percent in the hours specified above shall
be permitted for firemen, engineers, and shipping crews.
(d) Designers and persons engaged in executive and/or super-
visory capacity, who are earning $35.00 or more per week, and trav-
eling salesmen. Working foremen are not excepted from the mini-
mum hours specified above.
(e) Watchmen and night firemen shall be permitted to work not
to exceed an average of forty-eight hours per week in each two
weeks' period.
(f) Truck drivers operating on trips normally requiring more
than eight hours, except in cases* of unavoidable delay due to break-
down or accident, shall be subject to hours of labor of a code here-
after to be adopted for the trucking industry.
2. No manufacturer availing himself of' the averaging privilege
may use ih^ device of temporarily laying off of successive groups
of workers for the purpose of operating his entire plant forty-five
hours per week continuously through the full averaging period.
Article IV — Wages
1. Except as provided in subsection (b) of this Section:
(a) No employee in the States of Virginia, North Carolina, South
Carolina, Tennessee, Kentucky, Georgia, Florida, Alabama, Missis-
sippi, Louisiana, Arkansas, Oklahoma, and Texas, and that part of
the State of Missouri south and west of an air line beginning at
Thayer in Oregon County to Buffalo in Dallas County, thence di-
rectly west to the Kansas State line ; and no employee in any factory
the output of which consists of more than 90% of chairs with double
woven cane seats, shall be paid at less than the rate of 30 cents
per hour.
(b) No other employee shall be paid at less than the rate of 34
cents per hour.
557
2. Exceptions. — No employee covered in paragraphs (a) and (b)
of this Section shall be paid at less than 80% of the minimum wage
rates prescribed in Section 1 of this Article, provided that in no case
shall the weekly wage of factory watchmen be less tlian $12.00 per
week of forty (40) hours or more.
(a) Apprentices for a period of four mouths which shall be served
not more than once in a lifetime of each apprentice; provided, that
the total number of apprentices shall not exceed five percent of the
total number of factory workers employed by any employer.
(b) Factory watchmen, gate watchmen, yardmen, and yard lum-
ber handlers; provided, that the total number of such employees
shall not exceed five percent of the total number of factory workers
employed by any employer.
8. No employee shall be paid a wage rate which will yield a less
wage for a week of forty hours than employees were receiving for
the same class of work for the normal working week of 48 hours or
over immediately preceding June 16, 1933.
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. The minimum wage rates provided for in Sections 1 and 2 of
this Article apply only to employees engaged on the single daylight
shift occurring between the hours of seven o'clock A.M. and five
o'clock P.M.; any employee, with the exceptions specified, viz, sub-
paragraphs (a), (b), (c). (d), and (e) of Section 1, Article III,
working on a shift all or any part of which occurs after five o'clock
P.M. or before seven o'clock A.M., shall be paid at the rate of not
less than one and one-half times the rate paid employees engaged
in the daylight shift for the same class of work. The provisions of
this Section shall not become effective until 30 days after approval
of this Code by the President.
Article V — General Labor Provisions
1. No person under 16 years of age shall be employed in the in-
dustry nor anyone under 18 years of age at operations or occupations,
hazardous in nature or detrimental to health. The Code Authority
shall submit to the Administrator before January 15, 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 certiHcate 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.
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.
S. No eniployee and no one seeking employment shall be required
as a condition of em})loyment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing, and
558
4. 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.
5. Within each State this Code shall not supersede any laws of
such States 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. No employer shall reclassify employees or duties of occupations
performed for the purpose of defeating the provisions of the Act
or of this Code.
7. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below the minimum established by this 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 hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.
8. Each employer shall post in conspicuous places accessible to
employees full copies of this Code.
Article VI — Administration'
1. To effectuate further the policies of the Act a Code Authority
is hereby constituted to cooperate with the Administrator as the
Administrative, Planning, and Fair Practice Agency for the
Industry.
(a) The Code Authority shall consist of not less than twenty
members, eleven to be selected by the National Association of Fur-
niture Manufacturers, Incorporated, and seven to be selected by
the Southern Furniture Manufacturers Association, together with
the Managing Director of the National Association of Furniture
Manufacturers, Incorporated, and the Secretary of the Southern
Furniture Manufacturers Association, and such additional members
as may be necessary to represent other groups as may come under
this Code ; all to be elected by a fair method of selection to be ap-
proved by the Administrator. The Government is to be represented
on the Code Authority by two members without vote to be appointed
by the Administrator for terms of from six months to one year
arranged so that the terms do not expire at the same time.
(b)° 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_ de-
termined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration.
(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, by-
559
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,
(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 hearmgs
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) To present to the Administrator from time to time recom-
mendations based on conditions in the furniture industry as the:^ may
develop which will tend to effectuate the operation of the provisions
of this Code and the policy of the Act.
(b) To cooperate with the Administrator in making investigations
as to the functioning and observance of any provisions of this Code
at its own instance or on complaint by any person affected, and to
report same to the Administrator.
(c) To issue rules, regulations, procedure, and interpretations as
may be necessary to effectuate the provisions of this Code.
(d) In individual cases where the enforcement of this Code would
create undue hardships, to modify, with the approval of the Ad-
ministrator, the application of provisions of this Code except those
which are mandatory under the Act and the provisions of Articles
III, IV (except Section 5), and V hereof.
(e) To investigate and inform the Administrator as to the im-
portation of competitive products into the United States in substan-
tial quantities or in 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 mak-
ing complaint to the President on behalf of the furniture industry
un^ler the provisions of the Act, with respect thereto.
(f ) To issue schedule of maximum trade discounts or allowances
for volume purchases to govern the sales of furniture by furniture
manufacturers, which, with the approval of the Administrator, after
such notice and hearing as he shall prescribe, shall thereafter become
a part of this Code.
(g) To designate an executive committee consisting of the Manag-
ino-^^Director of the National Association of Furniture Manufac-
turers, Incorporated, and the Secretary of the Southern Furniture
Manufacturers Association and two others from its membership, and
such representation as may be designated by the President. The
Code Authority may delegate to the Executive Committee such of
its powers as it may deem necessary to effectuate the purposes of this
Code and to represent the industry before the Administrator.
(h) To designate agencies or subcommittees for the various manu-
facturing areas or divisions, which agencies or subcommittees shall
be repre'sentative of their respective areas or divisions, to assist it
in making investigations as to the functioning and observance of the
560
provisions of this Code, under rules prescribed by the Code Authority
and approved by the Administrator.
(i) From time to time to make to each association and/or division
recognized or to be recognized as a part of the Industry under the
provisions of this Code, such recommendations, including proposed
amendments of the Code, as in their judgment will aid the effective
administration of this Code or may be necessary to effectuate within
the Industry the purpose of the Act.
3. Within sixty days after this Code goes into effect the Code
Authority shall investigate and report to the Administrator con-
cerning the question of home work,
4. In order to provide data necessary for the administration of
the Act, as provided in paragraph (a) of Section 3 of the Act,
niembers of the industry shall furnish certified statistical informa-
tion with full protection to each member of the Industry as to the
confidential nature of the data, such as reports dealing with wages,
hours of labor, conditions of employment, number of employees,
production, shipments, sales, and other data pertinent to the pur-
poses of this Code and of the Act as mav be required by the Admin-
istrator or by the Code Authority, subject to approval of the Admin-
istrator. The agencies collecting such statistics shall be the National
Association of Furniture Manufacturers, Incorporated, the Southern
Furniture Manufacturers Association, the National Association of
Manufacturers of Wood Office Desks and Tables, and the Wood
Office Chair Manufacturers Association, or any other agencies as.
may be designated by the Code Authority, subject to the'' approval
of the Administrator. The Code Authority is hereby named as the
agency for coordination of such statistics for the Administrator.
All such information or copies thereof shall be furnished to the
Administrator upon his request.
In addition to the information required to be submitted to agencies
provided for in paragraph (1) of this Article, there shall be fur-
nished to Government agencies such statistical information as the
Administrator may deem necessary for the purposes recited in Sec-
tion 3 (a) of the Act.
Article VII — Cost Protection
1. It is hereby declared to be the policy to be followed by all
members of the industry to refrain from destructive price cutting.
No furniture manufacturer, nor any partnership, corporation, firm,
association, or institution owned or controlled by a furniture manu-
facturer, shall offer, sell, or exchange, or agree to sell or exchange,
products of the furniture industry at a price or upon such terms or
conditions that will result in the customer paying for such products
less than their cost to the furniture manufacturer, except :
(a) To meet existing competition of lower cost producers on prod-
ucts of the same or equivalent design, character, quality, or specifi-
cations ;
(b) As provided in Section (2) of this Article. In the case of
orders for future delivery, the term " cost " shall be based upon the
cost at the time of acceptance of the order.
561
2. Nothing in this section shall prevent any furniture manufac-
turer from selling at any price discontinued patterns (close-outs),
which he shall not again manufacture. The Code Authority may re-
quire reports of all such sales, and, with the approval of the Admin-
istrator, may adopt rules to prevent the use of close-outs as an un-
fair trade practice.
3. The Code Authority is hereby empowered to establish uniform
cost accounting methods for the Industry, subject to the approval of
the Administrator.
4. For the purpose of encouraging accurate ascertainment of costs,
furniture manufacturers may report costs of furniture to their
trade associations to be summarized and which may be made avail-
able in consolidated form to those contributing to the summary pro-
vided that the name of those reporting shall not be divulged to any
other furniture manufacturer.
Article VIII — Trade Practices
The following practices constitute unfair methods of competitiott
for members of the industry and are prohibited :
1. Misrepresentation or False or Misleading Advertising.— -Th&
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 prepara-
tion of any product of the industry, or the credit terms, values,
policies, or services of any member of the industry, or otherwise,
having the tendency or capacity to mislead or deceive customers or
prospective customers.
2. /Secret Rebates. — 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 pur-
chasers of special services or privileges not extended to all purchasers
on like terms and conditions.
3. Commercial Bribery. — Directly or indirectly to give or permit
to be given, or offer to give, money or anything of value to agents,
employees 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 prin-
cipals 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. Piracy of Design. — The copying and/or reproducing of any
exclusive design or pattern, original in design or treatment, owned
by another furniture manufacturer, within two years of its intro-
duction.
5. Failure to Descrihe Products. — The failure to furnish to the
buyer on request a description of products, including the principal
materials of which it is made and other important attributes.
6. Fcdse Invoicing. — The withholding from or insertion in any
invoice of any statement making the invoice inaccurate in any mate-
562
rial particular, or which misrepresents the price or character of the
material content of the merchandise billed.
7. Terms of Sale. — Selling on more favorable terms than net 60
days or 2% cash discount within 30 days from date of shipment;
provided, that where it is the practice of a buyer to make monthly
settlement of all invoices, the manufacturer may allow the deduction
of the cash discount if payment is made not later than the 15th
of the calendar month following dates of shipment.
Notes may be accejDted at the option of the seller, but must carry
interest at the rate of not less than 6 percent per annum to be paid
by the maker, and the invoices of such cases shall not be subject to
the cash discount. Anticipation of payment is permitted at the rate
of one half of one (1) percent per month for the unexpired cash
discount period. This provision shall not supersede any State law
on the subject.
8. SMpments. — The making of sale other than on the basis of
F.O.B. the factory, except where the buyer and seller are located in
the same city or metropolitan trading area.
9. Dating of Invoices. — The pre-dating or post-dating of invoices
except that the Code Authority may upon investigation issue such
regulations as it finds necessary with respect to datings on seasonal
items.
10. The provisions of paragraph seven, eight, and nine of this
Article and the Provisions of Article VII shall not apply to sales for
export outside of Continental United States.
Article IX — Modificatign
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 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 approval
ibereoi.
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 provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or
discriminate 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
services increase as rapidly as wages, it is recognized that price in-
563
creases should be delayed, and that, when made, the same should, so
fer^s reasonably possible; be limited to actual increases in the seller's
costs.
Akticle XII— Effective Date
This Code shall become effective on the first Monday after its
approval by the President.
Approved Code No. 145.
Registry No. 312-1-10.
Approved Code No. 146
CODE OF FAIR COMPETITION
FOR THE
EXCELSIOR AND EXCELSIOR PRODUCTS
INDUSTRY
As Approved on December 7, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Excelsior and Excelsior Products In-
dustry, and hearings having been held thereon and the Administra-
tor having rendered his report containing an analysis of the said
code of fair competition together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said code of fair competition complies in all' respects with
the pertinent provisions of title I of said act and that the require-
ments of clauses (1) and (2) of subsection (a) of section 3 of the
said act have been met :
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to the authority vested in me by title
I of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said code
of fair competition be and is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
A dviinistrator.
The White House,
December 7, 1933.
(5C5)
25090° 244-146 33
No\-EMBER 20, 1933.
The President,
The White House.
Sir: A Public Hearing on the Code of Fair Competition for the
Excelsior and Excelsior Products Industry, submitted by the Na-
tional Excelsior Products Association, located at 111 West Wash-
ington Street, Chicago, Illinois, was conducted in Washington on
the 17th of October 1933, in accordance with the provisions of the
National Industrial Kecovery Act. The Association claim,s to rep-
resent 70 percent of the Industry.
The maximum hours permitted under this Code for factory em-
ployees are forty (40) hours per week, except that for two (2) pe-
riods each year consisting of not more than four (4) weeks each,
the maximum hours of employment shall be not more than forty-
eight (18) hours per week. For clerical and office emploj^ees a
maximum of forty-eight (48) hours per week is permitted. How-
ever, overtime at the rate of time and one third i,s provided for all
hours per day over eight (8) and all hours per week over forty (40).
The minimum wage for male factory employees is thirty cents
(30^) per hour in the North and twenty-two and one half cents
(221/2^) per hour in the South. The minimum wage for female fac-
tory employees on such light nonhazardous work as has customarily
been performed by female employees is twenty-five cents (25^) per
hour in the North and twenty cents (20^) per hour in the South.
The minimum wage for clerical or office employees is fourteen dol-
lars ($14.00) per week. However, female employees performing
substantially the same work as male employees shall receive the same
rate of pay as male employees.
This Industry has two extreme peaks during the year, one prior
to and including the Christmas season and the other in the spring
of the year. Owing to the fact that these commodities are so bullry
and involve such a serious fire hazard, it is practically impossible
to build .for storage in anticipation of future demands.
Since the world war, cotton linters have been taking the place of
excelsior in low-priced mattresses. Corrugated and fiber board box
partitions and shredded paper compete with excelsior. Straw, hay,
wood shavings, sawdust, shingle tow and old newspapers are serious
factors of competition since these commodities are byproducts of
other industries and require no further processing to become packing
ancl upholstering material.
The increased cost of material together with the competition of
byproduct articles requiring no further processing present little hope
for more than a slight increase in the sale of excelsior products and
it is not expected that this industry will increase employment to
any extent beyond that which is now being made in compliance with
this Code.
(567)
568
On the basis of the forty (40) hour week, 2Y8 wage earners should
benefit through reemployment, bringing the total number of wage
earners to 1,205.
The value of products in the Excelsior and Excelsior Products
Industry in 1929 was $5,008,769 and in 1931 was $2,982,864, a de-
crease of 40.4 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, without limi-
tation, subsection (a) of Section 7, and subsection (b) of Section 10
thereof; and that
(b) The National Excelsior Products Association, the applicant
group herein, imposes no inequitable restrictions on admission to
membership and is truly representative of the Excelsior and Ex-
celsior Products 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.
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 re-
ports of the various Advisory Boards it is believed that this Code as
now proposed and revised represents an effective, practical, equitable
solution for this Industry and its approval as herewith submitted is
recommended.
Eespectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
EXCELSIOR AND EXCELSIOR PRODUCTS INDUSTRY
Article I — Pueposes
To effect the policies of Title I of the National Industrial Recovery
Act, the follownig provisions are submitted as a Code of Fair Com-
petition for the Excelsior and Excelsior Products 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
1. The term " excelsior " as used herein is defined as a packing or
upholstering material composed of long, fine wood or paper shavings
or shreds.
2. The term " excelsior products " as used herein shall include
packing pads consisting of a paper wrapper filled with excelsior as
defined in the preceding paragraph.
3. The term " industry " as used herein is defined to mean all
members engaged in the manufacture for sale of Excelsior or Excel-
sior Products.
4. The term " member of the industry " includes any individual,
partnership, association, corporation, or other person engaged in
the industry, either as an employer or on his own behalf.
5. The term " employee " as used herein includes any and all per-
sons engaged in the industry, except a member of the industry, how-
ever compensated.
6. The term " employer " as used herein includes anyone by whom
any such employee is compensated or employed.
7. Whenever used herein the " South " shall be understood to mean
the following states: Virginia, North Carolina, South Carolina,
Georgia, Florida, Alabama, Mississippi, Louisiana, Tennessee, Ken-
tucl^, Arkansas, Oklahoma, and Texas. The " North " shall be
understood to mean all other states and the District of Columbia.
Article III — Hours
1. No employee, except as otherwise specified in this article, shall
be permitted to work in excess of forty (40) hours in any one week,
except that for two periods each year consisting of not more than
four (4) weeks each, the maximum hours of employment may be not
more than forty-eight (48) hours per week.
2. No person employed in clerical or office work shall be permitted
to work in excess of forty-eight (48) hours in any one weelj.
(569)
570
3. Employees covered in sections 1 and 2 above shall be compen-
sated at the rate of time and one third for all hours per day over
eight (8) and all hours per week over forty (40).
4. The provisions of this article shall not apply to executives, su-
pervisors, and their immediate assistants who receive more than
thirty-five ($35.00) dollars per week, nor to outside salesmen.
5. The provisions of Section one (1) of this article shall not apply
to watchmen, who shall be employed in pairs, and shall not be per-
mitted to work in excess of thirty -six (36) hours per week and forty-
eight (48) hours per week in alternate weeks, nor more than an aver-
age of forty-two (42) hours per week in a two (2) week period.
6. The provisions of Section one (1) of this article shall not apply
to truck drivers, who shall not be permitted to work in excess of
forty-eight (48) hours per week.
7. The maximum hours fixed in the foregoing sections shall not
apply to any employee on emergency maintenance or emergency re-
pair work involving breakdowns or protection of life or property,
but in any such special case at least one and one third (IVa) times
his normal rate of compensation shall be paid for hours worked in
excess of the maximum hours herein provided.
Article IV — Wages
1. (a) No male employees shall be paid less than twenty -two and
one half (22i/^^) cents per hour in the South, and not less than thirty
(800) cents per hour in the North.
(b) No female employees on such light, nonhazardous work as
has customarily been performed by female workers shall be paid less
than twenty (200) cents per hour in the South, and not less than
twenty -five (250) cents per hour in the North.
(c) No person employed in clerical or office work shall be paid
less than fourteen ($14.00) dollars per week.
2. This Article establishes a minimum rate of pay, which shall
apply irrespective of whether an employee is actually compensated
on a time-rate, piecework, or other basis.
3. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
Article V — General Labor Provisions
1. No person under sixteen (16) years of age shall be employed
in the industry. No person under eighteen (18) years of age shall
be employed at operations or occupations which are hazardous in
nature or dangerous to health. The Code Authority shall submit
to the Adrninistrator within sixty (60) days a list of such operations
or occupations. In any State an employer shall be deemed to have
complied with this provision as to age if he shall have on file a
certificate or permit duly issued by the Authority in such State em-
powered to issue employment or age certificates or permits showing
that the employee is of the required age.
2. (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 repre-
571
sentatives or in self -organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protec-
tion.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company ur^ion 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.
3. No employer shall reclassify employees or duties of occupations
performed for the purpose of defeating the provisions of the Act or
of this Code.
4. Every emploj'^er shall provide for the safety and health of his
employees at the place and during the hours of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six (6) months after the
effective date of this Code.
5. No provisions in this Code shall supersede any law within any
State which imposes more stringent requirements on employers as
to age of employees, wages, hours of work, or as to safety, health,
or sanitars^ conditions, or insurance, or fire protection, or general
working conditions, than are imposed by this Code.
6. Each employer shall post m conspicuous places full copies of
this Code.
Article VI — Administration
To further effectuate the policies of the Act, a Code Authority
is hereby established to cooperate with the Administrator in the
administration of this Code.
1. Organization and Constitution of Code Authority.
(a) The Code Authority shall consist of three (3) niembers, or
such other number as may be approved from time to time by the
Administratorj elected by a fair method of selection and approved
by the Administrator; and three (3) members to be appointed by
the Administrator who shall be without vote.
(b) In each of the divisional groups of the National Excelsior
Products Association, the Code Authority shall designate some one
individual, to be approved by the Administrator, who shall act as
its representative in such Division; and shall be designated as the
Regional Advisor for such Division. Such Regional Advisor shall
be the representative in his Division of the" Code Authority, and
the Code Authority, with the approval of the Administrator, may
delegate any of its functions and powers under this Code to such
Regional Advisor, provided that nothing contained herein shall re-
lieve the Code Authority from its duties and responsibilities under
this Code.
(c) The National Excelsior Products Association is hereby desig-
nated the Administrative Agency for the Code Authority.
^d) The National Excelsior Products Association 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,
572
organization, and activities as the Administrator may deem necessary
to effectuate ihe purposes of the Act.
(e) In order that the Administrative Agency and the Code
Authority shall at all times be truly representative of the Excelsior
Products 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 Administrative
Agency and/or 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
Administrative Agency and/or Code Authority.
(f) Any member of the industry may participate in any en-
deavors of the Code Authority and/or the National Excelsior
Products Association in the preparation of any revisions of, or addi-
tions or supplements to this Code, either by becoming a member of
the National Excelsior Products Association or by sustaining its
reasonable share of the expense of administration of this Code.
(g) Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone for
any act of any other member, officer, agent, or employee of the
Code Authority. Nor shall any member of the Code Authority be
liable to anyone for any action or omission to act under the Code,
except for his own wilful misfeasance or nonfeasance.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act:
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accord-
ance with the powers herein granted, and to submit the same to the
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the Act.
(b) To receive complaints of violations of this Code, make inves-
tigations thereof, provide hearings thereon, and adjust such com-
plaints, and bring to the attention of the Administrator for prose-
cution, recommendations and information relative to unadjusted
violations.
(c) To coordinate the administration of this Code with such
other codes, if any, as may be related to the industry, or any sub-
division thereof, and to delegate to any other administrative author-
ity, with the approval of the Administrator, such powers as will
promote joint and harmonious action upon matters of common
interest.
(d) In order to keep the President of the United States and the
Administrator informed as to the observance or nonobservance of
this Code, each member shall prepare and file with the statistical
department of the National Excelsior Products Association, at such
times and in such manner as may be prescribed, statistics covering
the number of persons employed, wage rates, earnings, hours of work,
and such other data or information as the Code Authority may from
time to time require. All such information shall be kept confidential,
as to members of the industry, and only general summaries thereof
may be published.
573
(e) The Code Authority shall establish and publish to the industry
within sixty (60) days after this Code becomes effective, standards
for and classifications of the industry's products, which standards
and classifications, when approved by the Administrator, shall there-
after be followed b}^ all members of the industry.
(f) The Code Authorit}^ shall establish, within sixty days after
this Code becomes effective, a uniform system of cost finding, which,
when approved by the Administrator, shall be the basis for deter-
mining costs of each member of the industry.
(g) Each member of the industry shatl, within fifteen days after
the effective date of this Code, file with the Code Authority his
net price lists, or price lists and discount sheets as the case may be,
individually prepared by him, showing his current prices or prices
and discounts, and terms of payment. Revised price lists, or revised
price lists and discount sheets, may be filed from time to time there-
after with the Code Authority loy an}'^ member to become effective
upon a date specified by such member, which date shall be not less
than ten (10) days nor more than twenty (20) days after the filing
of such revised lists. Copies thereof, with notice of the effective date
specified shall be sent immediately by the Code Authority to all
known members of the industry, who may file, if they so desire,
revisions of their price lists ancl/or discount sheets which, if filed
in less than five (5) days previous to such effective date shall take
effect upon the date when the revised price lists or discount sheets
first filed shall go into effect.
3. In addition to information required to be submitted to the Code
Authority, there shall be furnished to government agencies such in-
formation and reports as the Administrator may deem necessary for
tlie purpose recited in Section 3 (a) of the Act. No individual re-
ports shall be disclosed to any other member of the industry or any
other party except to such governmental agencies as may be directed
by the Administrator.
Article VII — Trade Practices
For all purposes of the Code the acts described in this Article shall
constitute unfair practices. Any member of the industry who shall,
directly or indirectly, through any officer, employee, agent, or repre-
sentative, knowingly use, employ, or permit to be employed any of
such unfair practices shall be guilty of a violation of the Code.
1. False Marking or Braiuling, — 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 an product of the industry, or otherwise.
2. Misrepresentation 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 ivay of
advertisement or otherwise, 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,
policies, or services of any member of the industry, or otherwise,
having the tendency or capacity to mislead or deceive customers or
prospective customers.
574
3. Coinimrcial Bribeii^. — No member of the Industry shall directly
or indirectly give or permit to be given, or offer to give, money or
anything of value to agents, emploj^ees, or representatives of cus-
tomers, or prospective customers, or to agents, employees, or repre-
sentatives of competitors' customers or prospective customers, with-
out the knowledge of their emplo3^ers 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. Interference with Contractual Relations. — No member of the
industry shall maliciously induce or attempt to induce the breach of
an 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.
5. Secret Rehates. — No member of the industry shall make the
secret payment or allowance of rebates, refunds, commissions, credits,
or unearned discounts, whether in the form o.f 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.
6. Giving of Prizes., Premiums., or Gifts. — No member of the in-
dustry shall give or offer to give prizes, premiums, or gifts through
any scheme which involves lottery, misrepresentation, or fraud and
which are calculated to induce the sale of any product.
7. Defamation. — No member of the Industry shall cause the de-
famation of competitors by falsely imputing 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.
8. Threats of Litigation. — The publishing or circularizing of
threats of suits for infringement of patents or trade marks or of
any other legal proceedings which are not made in good faith but
with the intent and having the effect of harassing competitors or
intimidating their customers.
9. Espionage of Competitors. — No member of the industry shall
secure or attempt to secure confidential information concerning the
business of a competitor by a false or misleading statement oi^rep-
resentation, by a false impersonation of one in authority whether by
bribery, or by any other unfair or fraudulent method.
10. Inequitable Contracts. — No member of the industry shall make
any contract of sale which permits the buyer to cancel same or which
provides for a lesser price to be paid in the event of a market de-
cline, unless such contracts shall also permit the seller to cancel same
or provide for a greater price in the event of a market rise.
11. Failure to Mark or Brand.— l^io member of the industry shall
sell or offer to sell a product of this industry without clearly stating
and marking visibly the grade thereon.
12. Cost Protection.— (a) No member of the industry shall sell or
offer to sell directly or indirectly, any product of the industry at a
price lower or at a discount greater, or on terms more favorable than
those set forth in his current price lists and discount sheets on file
with the Code Authority, or (b) sell, or offer to sell any products,
merchandise or service at prices below the lowest cost of any repre-
575
sentative member of the industry, as determined by the Code Author-
ity subject to tlie approval of the Administrator.
13. Tei^xs of Sale. — No member of the industry shall sell or offer
to sell on more favorable terms of sale than net 30 days, without de-
duction of discount for prepayment.
14. False Billing. — No member of the industry shall withhold from
or insert in any quotation or invoice any statement that makes it in-
accurate in any material particular.
15. Repudiating One's Own Contract. — No member of the industry
shall repudiate a contract entered into in good faith when the pur-
pose of such repudiation is to create for such member an unfair
price advantage.
16. Coercion. — No member of the industry shall require that the
purchase or lease of any goods be a prerequisite to the purchase or
lease of any other goods.
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
or method is unfair, providing that such adjudication or holding is
not inconsistent with any provision of the Act or of this Code.
Artiole VIII — Modification
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
\nsion of subsection (b) of Section 10 of Title I of the National In-
dustrial 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 or amended on the basis of experience or changes in circum-
stance, such modification or amendment to be based upon applica-
tion to the Administrator and such notice of hearing as he shall
specify and to become effective on approval of the President, unless
otherwise provided.
Article IX — Monopolies, Etc.
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 — Control of Production
Based on conditions in the industry in this period of emergency
and to effectuate the operation of the provisions of this Code and the
policy of the National Industrial Recovery Act, the following
regulations are established :
1. All persons engaged in this industiy shall register their pro-
ductive machinery with the Code Authority within fifteen (15)
days after the effective date of the Code and in such form as may
be specified by the Code Authority.
576
2. No person engaged in this industry or for the purpose of
engaging in this industry shall purchase, manufacture, lease or
otherwise obtain or use productive machinery not owned, leased
or otherwise held by such person prior to the effective date of this
Code, except by securing a certificate of public convenience and
necessity from the Administrator that the obtaining, manufacturing
or use of such additional produ.ctive machinery is consistent with
effectuating the policy of the National Industrial Recovery Act;
but nothing contained herein shall be construed to prevent the re-
placement by a member of the industry of productive machinery of
equal productive capacities existing on the effective date of this Code
or the transfer of productive machinery from one manufacturer to
another person, provided same was in use prior to the effective date
of this Code, and provided further that such transfer does not have
the effect of creating additional productive machinery within the
industry.
3. The provisions of this article shall cease to be effective on the
expiration of six months from the effective date of this Code. Pro-
vided, however, that prior to that time the Code Authority may sub-
mit to the Administrator its recommendation that said period be
extended, based on such information as may be required, and if the
Administrator finds upon such information and facts that a further
extension of this period is consistent with and further effectuates the
policy of the National Industrial Recovery Act he may declare the
provisions of this article to be operative for such longer period and
under such conditions as may be necessary to fully effectuate the
policy last herein mentioned.
Article XI — Effective Date
This Code shall be effective ten (10) days after its approval by the
President.
Approved Code No. 146.
Registry No. 310-02.
O
Approved Code No. 147
CODE OF FAIR COMPETITION
FOB THE
MOTOR VEHICLE STORAGE AND PARKING TRADE
AS APPROVED ON DECEMBER 7, 1933
BY
PRESIDENT ROOSEVELT
— ^
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Motor Vehicle Storage and Parking
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 recommendation 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 AdministratDr and do order that the said code
of fair competition be and it is hereby approved.
FRANIOLIN D. ROOSEVELT.
Approval recommended :
Hugh S. Johnson,
Adtninistrator.
The White House,
Decemher 7, 1933.
25686° 244-147 33 (5T7)
December 2nd, 1933.
The President,
The White Hov^e.
Sir : The proposed Code of Fair Competition for the Motor Vehicle
Storage and Parking Trade was submitted to the Administrator on
September 27, 1933, by the International Garage Association, repre-
senting approximately 80% of the Trade, A hearing was conducted
in "Washington on Friday, October 27, 1933, and the Code was revised
during the recess of the hearing and is submitted in its present form
for approval. All persons who requested appearances were properly
heard in accordance with statutory and regulatory requirements.
The Association presenting the Code represents that its invested
capital at the present time is in excess of two billion dollars and that
its certified membership represents in excess of one hundred ten
milHon square foot area of parking or garage space. The number of
employees is in excess of one hundred thousand men employed by
members presenting the Code and it is estimated that the number of
employees presentlv employed or to be employed under the hours
provided in the Code will increase approximately twenty -five percent.
Article I. — Purposes.
Article II. — Definitions.
Article III. — Provides a maximum of 44 hours in any one week,
limitation of not to exceed, in peak or emergency periods, 48 hours
in any one week or more than 10 hours in any one day; that the
average hours of weekly employment within a four-week period will
not exceed 44 hours. Outside salesmen are exempt from the provi-
sion of hours and watchmen not rendering service to the public are
exempt from hours but limited to a six-day week. In addition, the
usual safety clauses for both employer and employee are included.
Article iV. — Provides a minimum wage from $13.00 to $14.00 per
week in the southern area and from $14.00 to $15.00 per week in
northern areas, and further provides that the hourly rate shall not
be less than 50<^ per hour. Female employees engaged in similar
kinds of work shall receive the same rate of pay.
Article V. — No person under 16« years of age may be employed.
Article VI. — Provides a Code Authority of 17 members with the
right of the Administrator to appoint three additional nonvoting
members ; provides for four of the members to be elected at large and
geographical districts are set forth in detail.
Article VII. — Contains mandatory provisions as provided in the
National Recovery Act and includes the right of modification.
Article VIII. — Provision against additional capacity.
Article IX. — Defines cost recovery.
Article X. — Provides unfair trade practice and includes a section
covering violence, intimidation and coercion.
Article XI. — Monopolies.
(578)
579
The Administrator finds ;
(A) This Code contains in all respects the pertinent phrases of
Title I of the Act including without limitation Sub-Section A of
Section 7 and Sub-Section B of Section 10 thereof.
(B) The International Garage Association is truly representative
of the Motor Vehicle Storage and Parking Trade, and the bylaws
of this Association contain no inequitable restriction on membership.
(C) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them but will tend to effectuate the policies of Title I of
the National Kecovery Act. It is recommended, therefore, that this
Code be approved.
Respectfully,
Hugh S. Johnson,
A dminis trator*
CODE OF FAIR COMPETITION FOR THE MOTOR VEHICLE
STORAGE AND PARKING TRADE
Articxb 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 Motor Vehicle Storage and Parking Trade,
and upon approval by the President shall be the standard of fair
competition for this trade, and shall be binding upon every member
thereof.
Article II — Definitigns
Wherever in this Code, or in any proceeding under or in connec-
tion with this Code, the following words or terms are used, they
shall be deemed and taken to have the meaning ascribed to them as
follows :
Section 1. The term " the Trade " means and includes parking,
the rendering of parking service, and/or keeping for a considera-
tion, expressed or miplied, motor vehicles placed on parking lots or
stations or within public garage buildings or on or within any other
place where motor vehicles are kept or parked for a consideration,
expressed or implied, and includes supplementary services and main-
tenance only insofar as such are incidental to the principal business
of storage and parking as aforesaid.
Sec. 2. The term " supplementary services " shall mean the wash-
ing and other cleaning, lubrication, repairing, towing and mainte-
nance of every description of motor vehicles, the driving of cus-
tomers' cars, and the sale of automotive accessories, sucli as are
customarily^ performed in a garage, parking lot or parking station.
Sec. 3. The term " employee " includes any person engaged in any
phase of the trade in any capacity in the nature of employee ir-
respective of the method of payment of his compensation.
Sec. 4. The term " employer includes anyone for whose benefit
such an employee is so engaged.
Sec. 5. The term " member of the Trade " means, but without limi-
tation, any person, partnership, association, corporation or other
legal entity engaged m the Trade.
Sec. 6. The term " member of the Code " includes any member of
the trade who shall signify assent to this Code.
Sec. 7. The term " district " shall mean any territorial sub-division
set up under the Code Authority subject to the approval of the Ad-
ministrator.
Sec. 8. The term "Act " means Title I of the National Industrial
Recovery Act.
Sec. 9. The term " President " means the President of the United
States of America.
(580)
581
Sec. 10. The term "Aclministrator " means the Administrator for
Industrial Recovery.
Sec. 11. " Effective date " means the fir.st Monday after this Code
shall have been approved by the President.
Sec. 12. Population for the jDurposes of this Code shall be deter-
mined by reference to the 1930 Federal Census.
Sec. 13. The " Northern Area " shall consist of the following
states: Arizona, California, Colorado, Connecticut, Delaware, Idaho,
Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts,
Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire,
New Jersey, New Mexico, New York, North Dakota, Ohio, Oregon,
Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Wash-
ington, Wisconsin, Wyoming, and the District of Columbia.
Sec. 14. The " Southern Area " shall consist of the following
states: Alabama, Arkansas, Florida, Georgia, Kentuclvy, Louisiana,
Mississippi, Missouri, North Carolina, Oklahoma, South Carolina,
Tennessee, Texas, Virginia, and West Virginia.
Article III — Hours
Section 1. No office employee (other than employees in a mana-
gerial, executive, or supervisory capacity who receive not less than
$35 per week in the Northern Area of the United States, and not less
than $25 per week in the Southern Area of the United States) shall
work or be permitted to work in excess of 44 hours in any one week,
or in excess of 9 hours in any one day; provided, however, that in
emergencies or peak periods, such employees may work not more
than 48 hours in any one week, or not more than 10 hours in any one
day, but the average hours of weekly employment during a four-
week period shall not exceed 44.
Sec. 2. Outside salesmen shall be exempt from any provision of
maximum hours of employment. Watchmen, not rendering any
service whatsoever to the public, are exempt from the maximum
hours provided, but shall not work more than six days in any one
week.
Sec. 3. Cashiers ^those employees spending at least two thirds of
their time performing cashier's duties) may be employed for not
more than 48 hours in any one week.
Sec. 4. Employees engaged for one third or more of their houi*s
of labor at filling station work shall not be employed for more than
48 hours in any one week.
Sec. 5. Mechanical workers (those engaged in mechanical work
for one third or more of their working hours) shall not work or be
permitted to work more than 44 hours in any one week.
Sec. 6. No other employees shall work or be permitted to work
more than 54 hours in any one week.
Sec. 7. The maximum workday for employees other than those
defined in Section 1, Article III, shall not exceed ten hours.
Sec. 8. 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 weelc and day, whether employed by one or more employers.
Sec. 9. The maximum hours herein above described refer to the
availability of the employee in the establishment or on the premises
582
of the employer at the latter's request, whether or not the employee
is actively engaged in specific tasks throughout thege hours.
Sec. 10. Every employer and every partner in any partnership
engaged in the Trade shall be subject to the provisions as to hours
of lax)or prescribed for employees in this Code insofar as they per-
form the functions of such employees.
Article IV — Wages
Section 1. The m.inimum rates of pay per week in the Trade
except for mechanical workers or artisan^, shall be as follows :
Population of city or town, Inclndlng trade area thereof
Northern
area
Southern
area
Over 500,000
£etween 250,000 and 500,000.
ess than 250,000..
Per week
$15.00
14.50
14.00
Per week
$14.00
13.50
13.00
Sec. 2, No mechanical worker or artisan employed in this Trade
shall be paid less than at the rate of 50^ per hour of actual work
on some specific task unless the hourly rate for the same class of
work on July 15, 1929, was less than 50^ per hour, in which latter case
such mechanical worker or artisan shall be paid not less than the
hourly rate of July 15, 1929, and in no event less than at the rate of
400 per hour. Provided, however, that no such mechanical worker
or artisan who is available for normal full time to his employer in
the establishment or on the premises of the employer, at the latter's
request, shall be paid at less than the rates set forth in Section 1 of
this Article IV tor the respective areas therein described, without
regard to actual work by such mechanical worker or artisan upon
any specific tasks.
Sec. 3. No employee whose normal full-time weekly hours for the
four weeks ending July 1, 19SS, are reduced by less than 20 percent
shall have his or her full-time weekly earnings reduced. No em-
ployee whose full-time weekly hours are reduced by 20 percent
or more shall have his or her said earnings reduced by more than
10 percent.
Sec. 4. Female employees performing substantially the same work
as male emplo3'ees shall receive the same rate of pay as male
employees.
Sec. 5. A person who.se earning capacity is limited because of age
or physical or mental handicap may be employed on light work at a
wage below the minimum established by this Code if the employer
obtains from the State Authority designated by the United States
Department of Labor a certificate autliorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.
Sec. 6. 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.
25686 — 33 2
583
Sec. 7. This article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piecework, or other basis.
Article V
No person under 16 years of age shall be employed in the Trade.
Article VI — Administration
To further effectuate the policies of the Act, a Code Authority is
hereby set up to cooperate with the Administration in the adminis-
tration of this Code as a planning and fair practice agency for
the Trade. Said Code Authority shall have the powers and duties
prescribed in this Code, the exercise of which shall be subject to the
right of the administrator, upon review, to disapprove or modify any
action taken by the Code Authority.
DrVTSION A ORGANIZATION AND CONSTITUTION OF THE CODE AUTHORITY
Section 1. The Code Authority shall consist of 17 members rep-
resentative of the Trade. Not more than three additional nonvoting
members may at any time be appointed by the Administrator.
Sec. 2. The memoers of the Code Authority shall be elected by
vote of the members of the Code. One member shall be elected from
each of the 13 geographical regions, as defined in Section 10; four
members shall be elected at large.
Sec. 3. To serve from the effective date until the election of the
Permanent Code Authority, a temporary Code Authority of 7 mem-
bers shall be appointed by the President.
Sec. 4. In a fair manner prescribed by the Code Authority, with
the approval of the Administrator, and not later than February 10th
of each year, the members of the Code in each state may nominate
by ballot a candidate for the Code Authority from their election
region. Said nominating ballots shall be returned to a distinterested
and impartial agency appointed by the Code Authority, and ap-
proved by the Administrator.
Sec. 5, Candidates for election at large may be placed in nomina-
tion by the filing with the said impartial agency before noon of
February 10th of petitions signed by not less than 200 members of
the Code, either individually or in groups. No member of the Code
shall endorse by petition more than one such candidate. The said
distinterested agency shall certify the eligibility of the signers of
the petitions and shall for this purpose have access to the pertinent
records of the Code Authority.
Sec. 6. After February 10th the said disinterested agency shall
publish without delay and in form and manner directed by the Code
Authority, and subject to review by the Administrator, the list of
candidates nominated by the states and nominated b}' petition.
Sec. 7. Immediately upon the publication of the names of said
candidates, said disinterested and impartial agency shall prepare
and mail to each member of the Code of record as of noon of Febru-
ary 10th of the same year, two letter ballots and a self-addressed
postcard, together with notice thjtt such ballots to be counted must
584
be in tljo hands of said disinterested and impartial agency not later
than five weeks from the date of publication of the names of said
candidates, which return date shall be specified. One letter ballot
shall list the candidates reported by the state or states in said
member's region ; the other shall list the candidates at large. There
shall be indicated by said disinterested and impartial agency on the
letter ballot listing the regional candidates the number of votes to
which said member is entitled, said nmnber of votes to be determined
by the Code Authority in proportion to the assessments levied upon
and paid by said member of the Code during the previous twelve
months or any part thereof, pursuant to Section 2 of Division C of
this Article VI; provided, that each member of the Code shall have
not less than one vote. Each member of the Code, irrespective of
floor space or land area, shall be entitled to cast one vote for four of
the nominated candidates at large.
Sec. 8. These ballots shall be properly marked and returned to the
aforesaid disinterested and impartial agency. With said ballots,
each member of the Code shall return the postcard with a simple
signed statement to the effect that said member of the Code has
voted on the ballot for regional candidates, or on the ballot for
candidates at large, or both, as the case may be. Immediately upon
receipt of such ballots and postcard, the disinterested and impartial
agency shall record the fact that such member has voted, but not
how he has voted, and destroy said postcard. All ballots in the
hands of said agency at noon of the specified return date shall be
counted and the results reported by said agency directly to the
Administrator.
Sec. 9. The candidate approved by the Administrator, receiving
the highest number of votes from his region, shall forthwith be de-
clared elected to membership on the Code Authority and shall serve
for a period of one year or until his successor shall have been elected.
The four candidates at large approved by the Administrator, receiv-
ing the highest total number of votes of all the members of tlie Code
shall likewise be declared elected and shall serve concurrently with
candidates elected by the regions.
Sec. 10. If any date set forth in this Article VI falls upon a Sun-
day or upon a legal holiday, then the next following business day
shall be substituted therefor.
Sec. 11. The geographical regions for the purpose of election of
the Code Authority shall be constituted as follows:
Election region :^1: Election region ^4:1
Washington N, Dakota
Oregon S. Dakota
Idaho Nebraska
Montana Minnesota
Election region :::f^2: Iowa
California Election region ijt5:
Nevada Kansas
Election re^on 4^3: Missouri
Wyommg Oklahoma
Utah Texas
Colorado Election region #G:
Arizona Arkansas
New Mexico Louisiana
585
Election region #6 — Continued
Tennessee
Mississippi
Alabama
Election region :^7:
N. Carolina
S. Carolina
Georgia
Florida
Election region #8:
Wisconsin
Illinois
Election region #9:
Michigan
Indiana
Kentucky
Election region #10:
Ohio
Election region 4^10 — Continued
West Virginia
Election region #11:
Penns}dvania
Maryland
Delaware
District of Columbia
Virginia
Election region #12:
New York
New Jersey
Election region #13:
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
Sec. 12. In the selection of nominees for the Code Authority the
District of Columbia and Maryland shall be considered as one state.
Sec. 13. In order that the Code Authority shall at all times be
truly representative of the Trade and in other respects comply with
the provisions of the Act, the Administrator may prescribe 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.
DIVISION B. DUTIES AND POWERS Or THE CODE AUTHORITY
Section 1. For the purpose of supplying the President and the Ad-
ministrator with requisite data as to the observance and effective-
ness of the Code, in order that the President may be kept informed
with respect to observance of the Code^ each member of the Trade
shall submit through the Code Authority, reports concerning such
relevant matters, and in such form, and at such times as the Code
Authority may prescribe. No publication thereof to anyone or in
any manner shall be made other than in combination with similar
information furnished by other members of the Code, in which case
the publication shall be made only in such manner as will avoid the
disclosing separately of such confidential information.
Sec. 2. In addition to information required to be submitted to the
Code Authorityj 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 Act.
Sec. 3. In the event that the Code Authority should have reason
to believe that the reports submitted by any member of the Trade
are inaccurate, such reports shall be subject to verification by an
examination of pertinent books and accounts and records of such
member by a disinterested and impartial agency designated by the
Code Authority.
586
Sec. 4. The Code Authority shall study the trade-practice pro-
visions set forth in Article X and the operation thereof and shall
make any recommendations from time to time to the Administrator
which it deems desirable for modification or addition thereto, which
upon the approval of the President, after such hearing as may
be prescribed, shall become a part of this Code and have full force
and effect on provisions hereof.
Sec. 5. The Code Authority shall establish regional divisions and
subdivisions and shall delegate to proper Trade Associations or other
local agencies in such divisions or subdivisions as it deems proper
the duties of the carrying out of any of its activities provided for
herein, provided that nothing herein snail relieve the Code Authority
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.
Sec. 6. It shall be the function of the Code Authority to act as
the general planning and coordinating body for the Motor Vehicle
Storage and Parking Trade. To the end of effecting a balanced
national economy, the Code Authority may cooperate with the Inter-
national Garage Association in the collection, compilation, and
publication of pertinent data.
Sec. 7. The Code Authority shall adopt bylaws and rules and regu-
lations for its procedure and for the administration and enforcement
of this Code.
Sec. 8. The Code Authority shall make recommendations to the Ad-
ministrator for the coordination of the administration of this Code
with such other codes, if any, as may be related to the Trade.
Sec. 9. The Code Authority shall cooperate with the Administra-
tor in regulating the use of any N.R.A. insignia solely by those mem-
bers of the Trade who have assented to, and are complying with this
Code.
DIVISION C general
Section 1. Any member of the Trade is eligible to membership in
the International Garage Association and/or in any participating
trade association representing his local trade area and there shall be
no inequitable restriction on such membership. Each participating
association shall submit to the Code Authority, for transmission to the
Administrator, true copies of its articles of association, bylaws, regu-
lations, and any amendments when made thereto, with such other
information as to membership, organization, and activities as the
Administrator may deem necessary to effectuate the purposes of the
Act.
Sec. 2. Members of the Trade 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 this
Code either individually or in conjunction with other members of a
trade association, and t3y complying with the requirements of this
Code and sustaining their reasonable share of the expenses of its
administration. Such reasonable share of the expenses of adminis-
tration may be determined by the Code Authority subject to review
by the Administrator on the basis of gross area of floor space and/or
land area available fcr and utilized for the parking of motor
vehicles.
587
Seo. 3. Said declaration of assent shall be delivered or mailed to
the Code Authority, shall be in writing, and shall certify as to the
full name, legal address, location of each establishment operated by,
and bear the signature of each member making or joining in saia
assent.
Sec. 4. Nothing contained in this Code shall constitute the mem-
bers of the Code Authority partners for any purpose. Nor shall
this Code be construed to render any member of the Code Authority
liable in any manner to anyone for any act of any other member,
officer, agent, or employee of the Code Authority. Nor shall this
Code be construed to render any member of the Code Authority,
exercising reasonable diligence in the conduct of his duties here-
under, liable to anyone for any action or omission to act under this
Code, except for his own willful misfeasance or nonfeasance.
Article VH — General
Section 1. Employees shall have the right to organize and bar-
gain collectively through representatives of their own choosing, and
shall be free from the interference, restraint, or coercion of employ-
ers of labor, or their agents, in the designation of such representa-
tives or in self-organization or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection.
Sec. 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 organiza-
tion of his own choosing ; and
Sec. 3. Emplo3'^ers 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. All employers shall post copies of Article III and Article
IV of this Code in conspicuous places accessible to employees.
Sec. 5. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provision of 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
his approvel of this Code or any conditions imposed by him upon
his approval thereof.
Sec. 6. Such of the provisions of this Code as are not required to
be included therein by the Act may, with the approval of the
President, be modified or eliminated as changes in circumstances or
experience ma}'^ indicate. It is contemplated that from time to time
supplementary provisions of this Code, or additional Codes, will be
submitted for approval of the President to prevent unfair compe-
tition and other unfair destructive competitive practices and to
effectuate the other purposes and policies of Title I of the Act.
Sec. 7. Within each State, the provisions of this Code shall not
supersede any laws of such State imposing more stringent require-
ments, reflating the age of emploj^ees, wages, hours of worlc, or
health, fire, or general working conditions, than under this Code.
588
Article VIII — New CArAciTT
Any group of members of the Trade may agree that they shall
not participate in the providing of additional storage or parking
facilities for public use through the construction of new buildings,
the conversion of buildings not now used as public storage or parking
garages, or the opening up of vacant land of any description to be
used as parking lots and/or stations, except where needed. The
terms of any such agreement shall be subject to the approval of
the Administrator. Each such agreement shall provide, among other
things, that any dispute between the parties to such agreement as
to whether expansion is justified bv need for new facilities shall be
submitted to the Administrator, whose determination shall be final.
It is, of course, understood that any such agreement shall be bind-
ing only on the parties thereto.
Article IX — Cost Recovery
Section 1. Members of the Code under the direction of, and sub-
ject to the approval of the Code Authority j may by vote of said
members elect District Committees. Each District Committee shall
operate with reference to a district, the boundaries of which shall
be determined on the basis of competitive areas. The determination
of a district and the method of voting shall be subject to the approval
of the Administrator.
Sec. 2. The Code Authority shall establish a uniform system of
accounting, with the approval of the Administrator. Upon ap-
proval by the Administrator each member of the Trade shall adopt
such uniform system of accounting for the purpose of determining
his own individual costs ; provided that there may be such variations
therefrom and exceptions thereto as may be required by the individ-
ual conditions affecting each member of the Trade and as may be
approved by the Code Authority. Each member of the Trade within
each district determined as aforesaid, shall report his own individual
costs determined on the basis of such system of accounting, to a
disinterested and impartial agency desimated by the Code Author-
ity. Such agency shall keep secret such information so submitted.
Sec. 3, This agency shall from such reports ascertain the costs of
that representative member of the Trade in such district whose cost
is lowest and shall publish such costs to the members in such district.
No member of the Trade shall sell his services below the costs so de-
termined for his district.
Sec. 4. Within each such district there shall be a reasonable peri-
odic revision of costs by the designated impartial authority herein
before provided. The Code Authority shall prescribe with the ap-
proval of the Administrator the period during which such published
costs shall remain in force.
Article X — Trade Practice Rules
The following described acts shall constitute unfair methods of
competition and shall constitute violations of this Code :
Rule 1 — Inaccurate Advertising. — Publishing advertising (whether
printed, radio, display, or of any other nature) which is misleading
589
or inaccurate in any material particular, or misrepresenting any
goods (including but without limitation its use, trade mark, grade,
quality, quantity, origin, size, substance, character, nature, finish,
material, content or preparation) or credit terms, values, policies,
services, or the nature or form of the business conducted.
Rule £ — In-accurate Beferences to Com.'petitors^ Etc. — Publishing
advertising which refers inaccurately in any mat-erial particular to
any competitors or their goods, prices, values, credit terms, policies,
or services.
Rule 3 — False Billing. — Knowingly withholding from or insert-
ing in any quotation or invoice any statement that makes it inac-
curate in any material particular.
Rule 4 — Espionage of Competitors. — Securing confidential infor-
mation concerning the business of a competitor by a false or mis-
leading statement or representation, by a false impersonation of one
in authority, by bribery, or by any other unfair method.
Rule 6 — Interference with Contracts of Customers or Prospective
Customers. — Attempting to induce the breach of an existing contract
between a competitor and his employee or customer or source of
supply; or interference with or obstruction of the perfonnance of
such contractual duties or services.
Rule 6 — Cancelation of Contracts. — Canceling in whole or in part.
or permitting the cancelation in whole or in part, of any contract oi
sale of any service including storage or parking, except for a fair
consideration.
Rule 7 — Payment of Rebates. — Paying or allowing to any pur-
chaser in connection with the sale of any service including storage
and parking, any rebate, commission, credit, discount, adjustment, or
similar concession other than as is specified by him in his own estab-
lished and/or published and/or posted prices or in any contract of
sale, provided that the existence and tenns of such contracts shall be
disclosed to the Code Authority.
Rule 8 — Circulating False Informati&n. — Disseminating, publish-
ing, or circulating any false or misleading information whatsoever
concerning any member of the Trade.
Rule 9 — Incomplete Description. — Making any sale or contract of
sale of any service or automotive product under any description
which does not fully and fairly describe such service or product.
Rule 10 — Rendering Service Below Cost. — Rendering to any pur-
chaser in connection with the sale of any service or product any
other service or product, either voluntarily or by agreement of the
Earties, unless fair compensation for each ser^nce or product shall
e paid by such purchaser.
Rule 11 — Securing Competitors'' Employees. — Inducing or at-
tempting to induce employees to leave the service of a competitor
for the purpose of securing the trade or customers of such com-
petitor.
Rule 12 — Failure to Publish Prices. — The failure to publish in
form available for inspection on the premises by any member of the
Trade the schedule of prices charged by the member to the public for
each service or combination of services performed, or rendered, at
each place of business operated by such membcx.
590
Rule 13 — Rendering Free Service. — The offering or giving of any-
free service or free goods in connection with the sale of services ren-
dered. But nothing herein shall prevent the giving to customers of
articles having merely an advertising value.
Rule IJf. — Failv/re to Secure License. — Engaging in the Trade with-
out having complied with all city, county, state, or national laws
with reference to permits, business licenses, and/or privilege licenses.
Rule 15 — Failure to Pay Wages. — Failure to pay all wages in
cash or by check without deductions, except in the case of bonafide
claims by the employer either for money advanced or damage done
by the employee and for which such employee is legally liable.
Rule 16 — Selling Below Posted Prices. — Selling oelow one's own
established and/or published and/or posted prices.
Rule 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 or method is unfair, providing that such adjudication
or holding is not inconsistent with any provision of the Act or of
this Code.
R%ble 18 — Violence^ Inivmidation., or Unlamfid Coercion. — (a)
Any use of violence to person or property, intimidation, or unlawful
coercion by a member of the Trade against a member of the Trade.
(b) Any threat by a member of the Trade to use such violence
Intimidation, or unlawful coercion.
(c) Any conspiracy among members of the Trade, or among mem-
bers of the Trade and others, to use or to threaten to use such violence,
Intimidation, or unlawful coercion.
(d) Any combining or cooperating by a member of the Trade
with anyone who is using or threatening to use such violence, intimi-
dation, or coercion.
Rule 19 — Violation of Code Provisions. — The violation of any
other provisions of this Code.
Article XI — IMonopolies, Etc.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
Approved Code No. 147,
Registry No. 1724-10.
O
Approved Code No. 148
CODE OF FAIR COMPETITION
FOR THE
PYROTECHNIC MANUFACTURING INDUSTRY
As Approved on December 7, 1933
BY
PRESIDENT ROOSEVELT
Executive Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Pyrotechnic Manufacturing Industry,
and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have been
met:
NOW THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code oi fair
competition be and is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
A dministrator.
The White House,
December 7, 1933.
(591)
25687° 244-1 48 33
November 27, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Pyrotechnic Manufacturing Industry in the United States, a hearing
on which was conducted in Washington on the thirty-first of Octo-
ber 1933, in accordance with the provisions of the National Indus-
trial Recovery Act.
PROVISIONS OF THE CODE AS TO WAGES AND HOURS
This Code provides for a maximum workweek of forty (40) hours
or eight (8) hours in any twenty-four (24] hour period in the Com-
mercial Fireworks Division, except that factory employees may be
permitted to work a maximum of forty-eight (48) hours per week
tor seasonal periods not exceeding two months in the first six-month
period and one month in the second six-month period of any calendar
In the Display Fireworks Division a maximum workweek of forty
(40) hours or eight (8) hours in any twenty-four (24) hour period
is provided, except that for the period from April 15 to September
15 factory employees may be permitted to work a maximum of forty-
eight (48) hours per week.
In the Fusee Division a maximum workweek of thirty-five (35)
hours or seven (7) hours in any twenty-four (24) hour period is pro-
vided. -J J ^
Exceptions to these limitations on working hours are provided for
executives, supervisory staffs, and clerical workers receiving at least
$35.00 per week. Further exceptions are provided for traveling sales
persons, watchmen, and persons engaged on emergency maintenance
and repair work, clerical workers receiving less than $35.00 per week,
janitors and boiler-house employees, and truckmen.
In all divisions overtime shall be paid for at the rate of time and
one third.
This Code provides for a minimum wage of thirty-seven and one
half (371/2) cents per hour for males and thirty-two and one half
(321/9) cents per hour for females in the Commercial Fireworks
Division, forty (40) cents per hour for males and thirty-five (35)
cents per hour for females in the Display Fireworks Division, and
forty (40) cents per hour in the Fusee Division. This estabhshes
minimum rates of pay regardless of whether an employee is com-
pensated on a time-rate, piecework, or other basis.
Female employees performing substantially the same dutie^ as
male employees shall receive at least the minimum wage prescribed
for male employees. .
No person under eighteen (18) years of age shall be employed m
the industry.
(592)
593
With permission of State Authority, persons physically or men-
tally handicapped may be employed below the minimum wage
provided.
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.
ECONOMIC EFFECT OF THE CODE
The attached Code covers the manufacturing, assembling and dis-
play of all kinds of fireworks and the manufacture of fusees, railway
torpedoes, and flares. The industry has developed from small home
manufacturing units into large concerns with a considerable amount
of invested capital and employs at the present time approximately
1,500 wage earners -indicating a decline, based on the 1929 level of
employment, of about 500 persons. The industry is divided into
three Divisions: Commercial Fireworks, which includes the manu-
facture of all kinds of fireworks such as roman candles, pin wheels,
sparklers, and flares; Display Fireworks Division, which includes
the business of manufacturing, assembling, and displaying of fire-
works at exhibitions, fairs, and pageants, etc.; and the Fusee Divi-
sion, which includes the manufacture of pyrotechnic signals, com-
monly known as fusees, and railway torpedoes used as warning or
distress signals by various transportation units, particularly for the
protection of life and property.
The industry, with the exception of the Fusee Division, is highly
seasonal. The product of the Commercial Fireworks Division is
intended for use on two days, namely, the Fourth of July and
Christmas. The production peak for the Commercial Fireworks
Division comes in May and June in preparation for the Fourth of
July, followed by a lull until the fall revival in preparation for the
Christmas business.
In the Display Fireworks Division the production peak comes
during the summer and early fall months, when fireworks are dis-
played at various exhibitions, fairs, and pageants. Production in
the Fusee Division depends entirely upon the prosperity of our
transportation systems and is governed by the economic condition
of the country.
The Pyrotechnic Industry reached its peak in 1929, at which time
the volume of production was valued at approximately $6,584,000.
Since that time there has been a steady decline in the number of
establishments and in production. Possibly the most serious causes
of this decline have been restrictive municipal legislation and de-
structive competitive practices within the industry.
Imports of fireworks over the period from 1929 to 1931 amounted
to approximately 11 or 12 percent of the domestic production. These
importations have affected the industry seriously. Unfair practices
in the distribution of imported fireworks also have contributed to a
certain extent to the demoralization of the industry.
The Code contains a number of unfair trade practices which are
to be prohibited in order to eliminate destructive competition now
prevalent. These provisions should enable the manufacturers to
proceed on a sound, competitive basis.
594
In order to maintain the proper differential between the three
Divisions separate Wage and Hour provisions are established for
each. The Code will establish a work week of 35 hours in the Fusee
Division. In the Commercial Fireworks Division the Code will re-
duce the hours from 50 a week to an effective 42-hour week, as ap-
proximately 50 percent in the past have operated in excess of 48
hours, which is the maximum permitted for the seasonal peak, and 70
percent in the past have worked in excess of the 40 hours maximum
established for other periods. The Display Fireworks Division will
be reduced from a 60- to an effective 44-hour week, as 50 percent m
the past have worked over 48 hours, which is the maximum permitted
for the seasonal peak, and 80 percent in the past have worked m
excess of the 40 hours maximum established for the other period. In
the Fusee Division approximately 30 percent of the employees have
worked in excess of the 35 hours maximum established for this Divi-
sion. The reduction of hours throughout the country should mean
an increase of employment to approximately the 1929 level with an
additional 200 employees during the seasonal peaks m the Commer-
cial Fireworks and Display Divisions. Further increases m employ-
ment should be noted in the Fusee Division with increasing opera-
tions of our transportation system. This means a definite reversal
of the descending trend of employment since 1929.
The rates of wages established in the Commercial Fireworks
Division will increase the pay of 85 percent of these employees, and
increase pay rolls 42 percent. In the Display Fireworks Division
the minimum rates of pay established will benefit 65 percent of their
employees and will result in an increase in pay rolls of from 30 to 35
percent. Approximately 63 percent of the employees in the Fusee
Division will receive an increase in rates because of the minimum
estabhshed for this Division with an estimated 30 percent increase
in the pay rolls for this Division.
It is evident therefore that not only will the Code increase employ-
ment but when coupled with the resultant increase in purchasing
power and the elimination of destructive competitive practices will
result in the stabilization of the industry and an increase in purchas-
ing power. 1 . T 11,
It is believed that for the ultimate good of the industry that the
control prescribed and permitted in the Code is essential. It is
highly important, however, that the government representation in
the Administration and operation of the provisions of this Code
exercise carefully its functions.
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 groups impose no inequitable restrictions on
admission to membership therein and are truly representative of the
Pyrotechnic Industry ; and that
595
(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 immediately
adopted.
Respectfully.
Hugh S. Johnson,
Adimnistrator.
CODE OF FAIR COMPETITION
FOR THE
PYROTECHNIC MANUFACTURING INDUSTRY
Article I — Ptjrpose
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 Pyrotechnic Manufacturing Industry, and
upon approval by the President, shall be the standard of fair com-
petition for such industry and shall be binding upon every member
thereof.
Article II — Dffinitions
The term "Pyrotechnic Industry", as used herein, includes the
business of manufacturing and the assembly and display of all kinds
of fireworks, and the manufacture of fusees, railway torpedos, and
The term "Fireworks" includes all articles producing audible
or visible display, and includes Roman candles, pin wheels, Catherine
wheels, skyrockets, sparklers, bombs, caps, jerbs and shells, flares,
bengal and colored lights of all kinds, salutes and firecrackers ot
all kinds, smoke candles, smoke lights, signal lights, and all kinds
of novelty articles containing chemicals to be exploded or ignited.
The term " Commercial Fireworks Division " includes the manu-
facture of fireworks. .
The term " Display Fireworks Division " includes the displaying
of fireworks at exhibitions, the manufacture or assembly of fire-
works solely for the purpose of display, and presenting fireworks
spectacles and pageants. jt j- - j.-
The term "Fusee Division" means the manufacture ot triction-
cap igniting, time-burning pyrotechnic signals, commonly known as
fusees, used as warning or distress signals, particularly tor the pro-
tection of life and property by various transportation units, and ot
railway torpedos. . , -, j •
The term " employee " as used herein includes anyone engaged m
the industry in any 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 employer or on his own
behalf. „.-,.-, ^ « j
The terms " President ", "Act ", and "Administrator , as used
herein, shall mean, respectively, the President of the United btates,
(596)
597
the National Industrial Recover}^ Act, and the Administrator of
said Act.
For the purpose of this Code the term " jobber " shall mean a
wholesale dealer; the term "stockjobber" shall mean a jobber who
maintains a permanent warehouse, stocks fireworks, emploj's a sales
force, and ships merchandise to his customers from such stock; the
term " drop-shipment jobber " shall mean a jobber who does not
stock fireworks but sells to a retailer, the <i'oods being shipped direct
to such retailer by a manufacturer, stockjobber, or branch.
The term '' branch '' shall mean a separate establishment of a
member of the industry located in a different place from his main
office, where a separate sales force is maintained and a stock of
merchandise for sales purposes is carried.
Article III — Hours of Labor
Section 1, Provisions A'p'plicabJe to the C omtnercial Fireworks
Division only. — Except as hereinafter and in Section 4 of this
Article provided, no employee shall be permitted to work in excess
of forty hours in any one week or eight hours in any twenty-four-
hour period, except that factory employees may be permitted to
work a maximum of forty-eight hours per week for seasonal periods
not exceeding two months in the first six-month period and one
month in the second six-month period of any calendar year.
Sec. 2. Provisions Ajyj^HcahJe to the Display Fireworks Division
only. — Except as hereinafter and in Section 4 of this Article pro-
vided, no employee shall be permitted to work in excess of forty
hours in any one week or eight hours in any twenty-four-hour period,
except that for the period from April 15 to September 15 factory
emploj^ees may be permitted to work a maximum of forty-eight
hours a week and employees receiving $35 a week or more engaged
in the actual work of attending to or supervising a display of fire-
works at an exhibition spectacle or pageant may be permitted to
work until a display upon which they are engaged is concluded.
Sec. 3. Provisions Applicable to Hie Fusee Division only. — Except
as in Section 4 of this Article provided, no employee shall be per-
mitted to work in excess of thirty-five hours in any one week or
seven hours in any twenty-four hour period.
Sec. 4. Provisiojis Applicable to All Divisions of the Industry. —
(a) Executives, supervisory staffs, and clerical Avorkers receiving
$35.00 per week or more, traveling sales persons, watchmen, and
persons engaged in emergency, maintenance, and repair work, shall
be exempt from the provisions of Sections 1, 2, and 3 of this Article,
provided, however, that emergency, maintenance, and repair work
in excess of the maximum hours hereinabove provided shall be com-
pensated by overtime payment at the rate of not less than time and
one third, and, provided further, that emergency employment by
reason of fires and/or explosions shall be compensated by payment
at not less than the regular rate of pay for the employees so engaged.
(b) Clerical workers recoiviiu!; less than $35.00 per week may be
permitted to work an average of 40 hours per vreek during an}^ three
months' period, but not more than 48 hours in any one week.
(c) Janitors and boiler house employees may be permitted to work
a maximum of forty-eight hours per Aveek.
25087° 244-148 -33 2
598
(d) Truckmen may be permitted to work a maximum of forty-
four hours per week, with a ten percent tolerance during the seasonal
periods provided in Sections 1 and 2 of this Article.
Sec. 5. For the purpose of exceptions contained in Sections 1 and
2 of this Article, each member of the industry, who is a member of
both the Commercial Fireworks Division and Display Fireworlfs
Division, shall classify his plant or plants, by notice in writing to
the Code Authority Board, as coming within either the Commercial
Fireworks Division or the Display Fireworks Division.
Sec. 6. In the Commercial Fireworks Division time in excess of
eight hours a day and forty hours per week for employees whose
hours are limited in Section 1 of this Article, shall be paid for at time
and one third.
Article IV — Wages
Section 1. Coimivercial Firetoorks Division. — No male employee
shall be paid at less than the rate of 371/2 cents per hour. No female
employee shall be paid less than the rate of 321/0 cents per hour.
Sec. 2. Disj^lay Fireworks Division. — No male employee shall be
paid at less than the rate of 40 cents per hour. No female employee
shall be paid at less than the rate of 35 cents per hour.
Sec. 3. Fusee Dimsion. — No employee shall be paid at less than the
rate of 40 cents per hour.
Sec. 4. This, Article establishes minimum rates of pay regardless
of whether an employee is compensated on a time-rate, piecework, or
other basis.
Sec. 5. Female employees performing substantially the same duties
as male employees shall receive at least the minimum wage herein
prescribed for male employees.
Sec. 6. Employers shall adjust wage schedules in equitable relation
to the minimum hourly rates provided in this Article, so far as such
adjustments have not been made subsequent to June 16, 1933. Each
member of the Industry shall promptly report all such adjustments
to the Code Authority Board.
Article Y — General Labor Provisions
Section 1. No person under eighteen years of age shall be employed
in the industry.
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
refrain from joining, organizing, or assisting a labor organization of
his own choosing.
Sec. 4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ajDproved
or prescribed by the President.
599
Sec. 5. Within eacli State this Code shall not supersede any laws
of such State imposing more stringent requirements on employers
regulating the age of emploj'ees, wages, hours of work, or health-, tire,
or general working conditions than under this Code.
Sec. 6. There shall be no evasion of this Code bv reslassification of
the functions of workers. A worker shall not be included in any of
the exceptions enumerated in Article III hereof unless the identical
fuu/ctions which he performs were identically classified on June 16,
1933.
Sec. 7. No employer shall knowingly engage any employee for any
time for which, when totalled with that already performed for
another employer or emploj^ers, exceeds the maximum permitted
herein.
Sec. 8. An employer shall make payment of wages due in lawful
currency or negotiable check payable on demand. Wages shall be
paid at the end of the regular pay-roll period. These wages shall be
exempt from any payments for pensions, insurance, or sick benefits
other than those voluntarily paid by the wage earner.
Sec. 9. A person whose earning capacity is limited because of age
or physical or mental handicap may be emplo^^ed on light work at a
wage below the minimum established by this 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 hours as shall be stated in this certificate,
provided that the number of such emplo3'ees shall not exceed five
percent (5%) of the total number of employees on the pay roll.
Each employer shall file with the Code Authorit}^ Board a list of all
such persons employed by him.
Sec. 10. Each employer shall post in conspicuous places accessible
to employees copies of Articles III, IV, and V of tliis Code.
Article VI — Admikistkation
Section 1. Code AutTiority Board. — To further effectuate the
policies of the Act, a Code Authority shall be established and known
as the Code Authority Board of the Pyrotechnic Manufacturing
Industry. The industry sliall be classified into three divisions known
as (1) Commercial Fireworks Division, (2) Display Fireworks
Division, and (3) Fusee Division.
Additional divisions may be organized, or existing divisions con-
solidated, upon recommendation of the Planning and Fair Practice
Agencies of the divisions affected, and the Code Authority Board,
with the approval of the Administrator.
Sec. 2. Organization and Constitution of Code Autho7'ity Board.— ~
The Code Authority Board shall be composed of members of the
industry. Three members shall be elected by each respective division
according to the following rules and subject to the approval of the
President,
1. Each member of the industry shall have one vote in {-acii divi-
sion of wliicli he is a member.
2. The vote of a majority in number of members of the division
representing in the aggregate more than one half of the gross
safes of such division in the previous calendar year shall be necessary
to elect.
600
The Code Authority Board shall act as a coordinating agency for
the divisions of the industry. The President may appoint not more
than three members, without vote, to the Code Authority Board.
The Code Authority Board so organized is hereby constituted the
agency for cooperating Avith the Administration or the Administra-
tor as an administrative, planning, and fair-practice agency for the
Pyrotechnic Manufacturing Industry. Such agency may from time
to time present to the Administrator recommendations based on 'con-'
ditions in the industry as they may develop, which will tend to
effectuate the operation of the provisions of this Code and the policy
of the Act.
Sec. 3. Divisional Planning aiul Fair Practice Agencies. — Each
division of the Pyrotechnic Manufacturing Industry shall, by the
method above j^rescribed for election of members of the Code Au-
thority Board, elect its own separate and distinct divisional Planning
and Fair Practice Agency. Each such divisional Planning and Fair
Practice Agency shall present in writing to the Code Authority
Board, and each member thereof individually, its recommendations.
If the Code Authority Board fails to disapprove thereof within
twenty clays after the same shall have been presented, said recom-
mendations shall be deemed approved by it. If the Code Authority
Board disapproves thereof, then and in that event the divisional
Planning and Fair Practice Agency shall be entitled to present its
recommendations direct to the Administrator for his approval. Rec-
ommendations made under this Article shall not become effective
until approved by the Administrator.
Each division may carry out the approved recommendations of
its Planning and Fair Practice Agency, subject to supervision by the
Code Authority Board, all to the end that each division may be
self-governing in all problems, including trade terms and trade
practices, relating exclusively to itself.
In order that the Code Authority Board 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 Board 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 thereof.
Sec. 4. Powers and Duties of the Code Aidlioi^ity Board. — The
Code Authority Board shall have the following duties and powers to
the extent permitted by the Act, subject to the right of the Adminis-
trator on review to disapprove or modify any action taken by it :
(a) The Code Authority Board shall administer the Code and
shall maintain all activities pertinent thereto, such as obtaining from
employers reports requested by the President or his authorized
representative in respect to Avages, hours of labor, conditions of em-
plojanent, and number of employees. In addition to the informa-
tion required to be submitted to the Code Authority Board, there
shall be furnished to government agencies such statistical infoi'mation
as the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the Act.
(b) Members of the industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority Board
and to participate in the selection of the members thereof by assent-
601
ing to and complying with the requirements of this Code and sus-
taining their reasonable share of the expenses of the adniinistration.
The reasonable share of the expenses of the administration shall be
determined by the Code Authority Board, 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.
(c) The Code Authority Board shall investigate and report to the
Administrator as to the iinportation of competitive articles into the
United States of America, in substantial quantities or increasing
ratio to domestic production, or under such terms or conditions as to
render ineffective or seriously endanger the maintenance and en-
forcement of this Code, and shall make complaint on behalf of the
Pyrotechnic Industry, under the provisions of Section 3 (e) of the
Act with respect thereto.
Sec. 5. Trade Association. — Each trade or industrial association
directly or indirectly participating in the selection or activities of
the Code Authority Board shall (1) impose no inequitable restric-
tions 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 infornaa-
tion as to membership, organization, and activities as the Adminis-
trator may deem necessary to effectuate the purposes of the Act.
Article VII — Trade Practices
Section 1. Provisions Applicable to all Divisions of t?ie
Industry. —
A. Sales Below Cost. — Under the direction of the divisional
Planning and Fair Practice Agencies studies shall be made in an
eflfort to determine fair and uniform cost-finding procedures for
members of the respective divisions of the industry. If and when
such cost-finding systems are recommended by any Planning and
Fair Practice Agency and are approved by the President or his
authorized representative, sales below cost, so determined, shall be
unfair competition.
B. It shall be unfair competition for any manufacturer engaged
in the industry —
(1) To give rebates, refunds, commissions, credits, or unearned
discounts, whether in the form of money or otherwise, or to extend
to certain purchasers special services or privileges not extended to
all purchasers on like terms and conditions ; give guarantees against
decline in prices or protection against price advances, except in the
Fusee Division;
(2) To indulge in commercial bribery in any form, such as the
giving of gratuities, commissions, or rewards to purchasing agents
or other employees of customers or by lavish entertainment of such
employees ;
(3) To misrepresent merchandise with respect to size, substance,
weight, or quality, or to use false, deceptive, untrue, or misleading
statements in advertising, printing, or otherwise ;
(4) To maliciously entice away the employees of a competitor for
the purpose of hampering, injuring, or embarrassing a competitor in
his business; but nothing in this paragraph shall prevent any em-
602
ployee from offering his services to another employer, nor prevent any
emplo3^er from employing the employee of another employer.
(5) To defame a competitor by falsely imputing to him or it dis-
honorable conduct, inability to perform contracts, questionable credit
standing, or by any other misrepresentation calculated to mislead or
deceive customers.
(6) To disparage falsely the quantity, grade, quality, or sub-
stance of a competitor's products by any statement calculated to mis-
lead or deceive customers.
C. Piracy or Styles and Designs. — Copying of lines, items, or
effects originated by a competitor during the calendar year in which
they were originated, shall be unfair competition. Any member of
the industry claiming to have originated a design, style, pattern, or
effect, may register the same by furnishing plans and/or models
thereof to the Code Authority Board together with an affidavit set-
ting forth his exclusive claim thereto and he shall have the exclusive
right to the use thereof for two years from the date of such registra-
tion. The fact that such registration has been made shall be prima
facie evidence that the use of such designs, style, pattern, or effect
by a competitor is a violation of this Code.
D. Materials. — No domestic materials shall be used in the manu-
facture of pyrotechnics unless the same have been manufactured under
and in accordance with the provisions of a code of fair competition
duly approved by the President, or the President's Reemployment
Agreement.
Sec. 2. Provisions Applicable to the Commercial Firemorks
Division only —
A. Terms of Sale. — Full details of all terms of sale, including date
of delivery and payment, quantity, price, freight, terms, etc., shall be
set forth in a written order and shall be strictly adhered to.
B. Trade Discounts. — The following trade discounts shall prevail
throughout the division :
1. Regular trade discount shall be fifty percent (50%) of list price,
f .o.b. Main Factory.
2. On all drop shipment orders from the factory there shall be an
additional service charge of not less than ten percent (10%) of the
net amount of the invoice.
3. Subject to the approval of the Administrator, if and when the
jobbers dealing with members of this division shall, through a duly
approved code of fair competition or otherwise, agree to sell on sub-
stantially similar terms :
a. Stock orders to jobbers from branches shall be at price, f.o.b.
Branch, not less than factory price plus actual transportation charges
from main factory, plus ten percent (10%).
b. On all drop shipment orders from branches there shall be an
additional service charge of not less than five percent (5%) of the
net amount of the invoice.
c. No manufacturer shall allow any discount on quantity sales to
retailers in excess of twenty-five percent (25%) of list price, f.o.b.
shipping point.
4. No manufacturer shall ship in carload or by truck from factory
to any jobber merchandise especially packed or marked for distribu-
tion to such jobbers' retail customers; provided, however, that
603
nothing in this section shall be so construed as to prohibit any manu-
facturer from including, in any carload, shipments to more than one
jobber.
C. Terms of Payment.— Goods sold for the Fourth of July trade
shall be billed for payment July 10th net cash. Goods sold for the
Christmas trade shall be billed ^for payment January 10th net cash.
If cash payment is made before the due date as herein provided, dis-
count at the rate of one percent (1%) per month shall be allowed
for such cash prepayment up to a maximum allowance of six percent
(6%). On all goods not sold for the usual Fourth of July and
Christmas trade the terms of payment shall be thirty days net cash
with an allowance of two percent (2%) for payment within ten daj^s
of date of shipment.
D. Consignments and Returned Merchandise. — No goods shall
be sold upon consignment and no goods shall be sold with any under-
standing, open or secret, that payment therefore shall be deferred
beyond the time of the regular terms of payment. Merchandise
delivered by the manufacturer within the time agreed upon and in
compliance with the specifications of an order shall not be accepted in
return by the manufacturer except with the approval and consent of
the divisional Planning and Fair Practice Agency, subject to review
by the Administrator.
E. Blanket Orders. — No requirement contracts or blanket orders,
that is, orders for a gross amount without specifying the kind and
quantity of goods to be delivered, shall be accepted by any member of
this division.
F. Staple Goods and Prices. — The divisional Planning and Fair
Practice Agency is empowered to designate certain items that are
generally manufactured by the division as staple goods. On items
so designated it shall, subject to the approval of the Administrator,
prescribe limits or size, weight, and other specifications necessary
for a reasonable standardization. At the beginning of each season,
not later than August 1st for the Christmas trade and November 1st
for the Fourth of July trade, each manufacturer shall file in writing
with the Code Authority Board a full and complete schedule of net
selling prices, such schedule to be accompanied by a full description
of the items as to weight, size, and other details. No net selling
prices or specifications applying to such items may be changed dur-
mg the season to figures on any item lower than the lowest net sell-
ing price on file with the Code Authority Board without giving ten
days' notice in writing to the divisional Planning and Fair Practice
Agency. Upon the filing of such reduced prices, the divisional
Planning and Fair Practice Agency shall immediately notify all
members of the division of such reduction. Nothing herein con-
tained shall permit the sale of any item in violation of the provisions
of subdivision A of Section 1 of this Article.
G. Delivered Prices. — Nothing herein contained shall prevent any
manufacturer from selling similar articles at the same delivered
price as any other manufacturer, unless such sale shall violate sub-
division A of Section 1 of this Article.
H. Transactions Between Members of the Division. — The pro-
visions of this Article as to terms of sale, terms of payment, freight,
604
freight terms, and trade discounts shall not apply to transactions
between members of this division, nor to sales of caps to manufac-
turers of jDistols.
I. Distress Merchaxdise. — Inventories which must be converted
into cash to meet emergencies and abandoned lines may be disposed
of in such manner and on such terms and conditions as may be
prescribed by the divisional Planning and Fair Practice Agency,
subject to review by the Administrator.
Article VIII — Stabilization
Section 1. Commercial and Display Fireworks Divisions. — In
view of the surplus of production facilities in these divisions, before
any additions to or expansions of present manufacturing plants or
equipment shall be made or any new manufacturing plant shall be
constructed, application shall be made to the Administrator, who
shall take such action after notice and hearing as may seem neces-
sary to effectuate the policy of the Act.
Sec. 2. Fusee Division. — Until, in the opinion of the Administra-
tor, the demand for the products of the industry from the railroads
of the United States cannot adequately be met by the use of existing
production facilities, no additions to, or expansion of, present manu-
facturing plant or equipment shall be made and no new manufactur-
ing plant shall be constructed unless the Administrator, after notice
and hearing, shall find that public necessity and convenience require
same.
Article IX — Modification
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 National Industrial
Ilecovery Act, from time to time, to cancel or modify any order,
approval, license, rule, or regulation issued under Title 1 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. 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes of circum-
stances, such modification to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on approval of the President.
Article X — Monopolies, etc.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or descrimi-
nate 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
services increase as rapidly as wages, it is recognized that price in-
605
creases should be delayed and that, when made, the same should,
so far as reasonably possible, be limited to actual mcreases m the
seller's cost.
Article XII — Effective Date
This Code shall become effective on the first Monday after its
approval by the President.
Approved Code No. 148.
Registry No. 611-02.
o
Approved Code No. 149
CODE OF FAIR COMPETITION
FOR THE
MACHINED WASTE MANUFACTURING INDUSTRY
As Approved on December 7, 1933
BY
PRESIDENT ROOSEVELT
! i
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 Machined Waste Manufacturing 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 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 dminUtrator.
The White House,
December 7, 1933.
25688' 244-149 S3 (607)
November 25, 1933.
The President,
The White House.
Sir : This is a report on the Hearing on the Code of Fair Competi-
tion for the Machined Waste Manufacturing Industry, held m accord-
ance with the provisions of the National Industrial Recovery Act in
the Caucus Room of the Old House Office Building, on November 6,
1933. The Code which is attached was presented by duly qualified
and authorized representatives of the Industry, complying with
statutory requirements, said to represent 60 percent m number and
85 percent in vokune ot the Industry.
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 industry
The Industry comprises about 40 concerns, having an investment
in 1933 of $4,500,000. In 1928 and 1929 the Industrv provided em-
ployment for 1,600 full-time workers. This figure has declined to
about 900 full and part-time workers in 1933. The aggregate an-
nual sales have fallen from 130,000,000 pounds in 1928 to an estimated
65,000,000 pounds in 1933.
The wages specified in this Code according to testimony are m
excess by more than 30% of the highest 1929 wages paid in the
South. The increase from the low of 1933 is considerably in excess
of 100% according to testimony given. While the same percentage
increase is not to be fomid in the other districts, the improvement
is all that could be expected in the situation.
Hours of work have been reduced from 48 and more than 50, in
some instances, to 40, and employment is thereby increased in the
same proportions.
PROVISIONS or the code
The Code provides for a minimum wage in the North of 32^/2^ an
hour, and 30^ an hour in the South. Hours of work are limited to
40 hours in any one week and 8 hours in any 24-hour period with
the following exceptions: maintenance employees are permitted to
work 44 hours per week; truckmen, 48 hours per week; watchmen,
56 hours per week ; employees in a supervisory capacity receiving
$35.00 per week or more, and outside salesmen are not limited to
hours; employees on emergency repair work are excepted but are
to be paid time and one third for hours worked in excess of 44 hours
per week. Provision is made for the maintenance of differentials
between wages above the minimum. Operations are limited to one
shift of 40 hours. . , -, » „ ,
Representation on the Code Authority is provided for all members
of the industry.
(608)
609
There are no highly restrictive provisions in the Code itself. Pro-
vision is made for recommendations by the Code Authority to the
Administrator for licensing all new installations and in other ways
to regulate the industry. No such provisions, however, will become
effective without further approval of the Administrator.
FINDINGS
I find that:
(a) This Code complies in all respects with the pertinent provi-
sions of Title I of the National Industrial Recovery Act, including
without limitation subsection (a) of Section 7 and subsection (b)
of Section 10 thereof and further provides for the reporting of any
pertinent statistical information desired by the Administration.
(b) The Waste Manufacturers Association to be truly represen-
tative of the Machined Waste Manufacturing Industry. The By-
Laws of this Association provide no inequitable restrictions to
membership.
(c) The Code is not designed to promote monopolies or to elim-
inate or oppress small enterprises and will not operate to discrimi-
nate against them and will tend to effectuate the policy of Title I of
the National Industrial Recovery Act.
(d) The wages specified in this Code are substantially higher
than those prevailing prior to June 16, 1933.
(e) The trade practices have the support of the preponderant
majority of the industry and should increase uniformity oi practice.
I recommend that the Code be approved.
Respectfully,
Hugh S. Johnson,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
MACHINED WASTE 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 Machined Waste Manufacturing 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
1 The term " Industry " as used herein includes the manufacture
and sale of machined wiping waste and journal-box packing, and
branches or subdivisions thereof as may from time to time be
included under the provisions of this Code.
2. The term " member of the Industry " includes anyone engaged
in the Industry as above defined, either as an employer or on his own
3.' The term "Association" means the Waste Manufacturers
Association. .. ,„.-,..,.„ j
4. The term " 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. . . , -, j
5. The term " employee " as used herein includes anyone engaged
in the Industry in any capacity receiving compensation for his serv-
ice, irrespective of the nature or method of payment of such
compensation. . ■, ^ it.
6. The term " employer " as used herein includes anyone by whom
any such employee is compensated or employed. ^
7. The term " productive machinery " as used herein is dehned to
mean waste pullers.
Article III — Hours
1. No employee shall work or 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, except that:
(a) executives and employees in a managerial or supervisory ca-
pacity who receive thirty-five ($35.00) dollars or more per week
and outside salesmen are excepted from the maximum-hour pro-
visions of this Section.
(610)
611
(b) repair-shop crews, firemen, engineers, electrician;s, outside
crews, and cleaners shall be permitted to work 10% in excess of the
maximum hours specified above.
(c) truckmen snail be permitted to work forty-eight (48) hours
per week.
(d) watchmen are permitted to work not in excess of fifty-six
(56) hours per week.
(e) employees on emergency maintenance or emergency repair
work involving breakdowns or protection of life or property may
work in excess of the maximum hours specified above, but in any
such special case at least time and one-third shall be paid for all
overtime work. At the end of each calendar month every employer
shall report to the Code Authority, hereinafter provided for, in such
detail as may be required, the number of man-hours worked in that
month for emergency reasons and the ratio which said emergency
man-hours bear to the total number of man-hours of labor during
said month.
2. Members of the Industry shall not operate productive machin-
ery in the Machined Waste Manufacturing Industry 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 thirty-two
and one-half (321/20) cents per hour in the North and thirty (300)
cents per hour in the South. The South shall include the states of
Virginia. North Carolina, South Carolina.Georgia, Tennessee, Ala-
bama, Mississippi, Louisiana, Texas, and Florida. The North shall
mean the rest of the United States.
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 mini-
mum wages hereby provided shall not be reduced (notwithstanding
that the hours worked in such employment may be hereby reduced).
Wage differentials existing prior to June 16, 1933, shall be main-
tained for all employees receiving thirty-five ($35.00) dollars or
less per week.
4. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
Article V — General Labor PRO\asiON8
1. No person under 16 years of age shall be employed in this
Industry, nor anyone under 18 years of age at operations or occu-
pations hazardous in nature or detrimental to health. The Code
Authority shall submit to the Administrator within ninety (90)
days after approval 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 certificate duly issued by the authority em-
powered to issue employment certificates, showing that the employees
are of the required age.
612
2. Employees shall have the riffht 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 employment 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, mini-
mum rates of pay, and other conditions of employment, approved, or
prescribed by the President.
5. Within each State members of the Industry shall comply with
any laws in such State imposing more stringent requirements, regu-
lating the age of employees, wages, hours of work, or health, wel-
fare, or general working conditions than are provided in this Code.
6. Each employer shall post in conspicuous places full copies of
this Code.
Article VI — Administration
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. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of five (5) individuals, or
such other number as may be approved from time to time by the
Administrator, to be selected by a fair method of election approved
by the Administrator. The President, in his discretion, may appoint
from one (1) to three (3) additional members without vote.
Each member of the industry shall have one vote in selecting the
members of the Code Authority.
(b) 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.
(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, bylaws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
saiy to effectuate the purposes of the Act.
2. The Code Authority shall have the following duties and powers
to the extent permitted by tliis Act. The Administrator shall have
the right to review and veto or modify any action taken by the
Code Authority.
613
(a) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in this Indus-
try as they may develop which will tend to effectuate the operation
of the provisions of this Code. Such recommendations when ap-
proved by the Administrator after such notice or hearing as he shall
specify shall have the same force and effect as any provision of
this Code. Such recommendations may include :
(1) Kecommendations (a) for the requirement by the Adminis-
trator of registration by persons engaged in the Machined Waste
Manufacturing Industry of all productive machinery, (b) for the
requirement by the Administrator that prior to the installation of
additional productive machinery by persons engaged or engaging
in this Industry (except for the replacement of machinery of equal
capacity or to establish balance in existing machinery) such persons
shall secure certificates that such installation shall be consistent with
effectuating the policy of the National Industrial Recovery Act
during the j^eriod of emergency, and (c) for the granting or with-
holding by the Achuinistrator of such certificates as so required by
him.
(2) Recommendations for a plan to prevent demoralization in the
Industry whenever operations are below 35 percent of registered
capacity and after approval by members of the Industry representing
80 percent of the volume of production.
(b) The Code Authority shall cooperate with the Administrator
in making investigations as to the functioning and observance of
any provisions of this Code, at its own instance or on complaint by
any person, and to report the same to the Administrator.
(c) Members of the Industry shall be entitled to participate in
ana 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 sustain-
ing their proper share of the reasonable expenses of its administra-
tion. The proper share of the expenses of administration shall be
determined by the Code Authority, on the basis of volume of busi-
ness and/or such other factors as may be deemed equitable to be
taken into consideration.
(d) Members of the Industry shall file with the Code Authority,
at such time and in such manner as may be prescribed, statistics cov-
ering number of employees, wage rates, employee earnings, hours of
work, production, shipments, stocks, prices, and such other data
pertinent to the effectuation of the purposes of this code as may be
required by the Administrator. Such information shall be received,
assembled, and reported to the Code Authority by a confidential
agency in no way connected with the Industry. This agency shall
disclose to the Code Authority only the general findings.
(e) 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.
(f) The Code Authority may from time to time appoint such
subcommittees 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 carry out the provisions of this Code.
614
(g) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he may pre-
scribe in respect to any rule, regulation, or other course of action
issued or taken by the Code Authority.
Article VII — Trade Provisions
1. No member of this Industry shall sell or exchange any product
of the Industry below his own cost as may be determined as here-
after provided. Wlien a uniform and standard system of Cost Ac-
counting, prescribed by the Code Authority, shall be approved by
the Administrator, every member of the Industry shall install a sys-
tem of accounting which conforms to the principles of and is at least
as detailed as such system. The Code Authority shall, subject to
the approval of the Administrator, determine the cost factors to be
included in such system, and the manner of calculating raw material
cost.
2. Any violation of the unfair trade practices set forth in Sched-
ule A attached hereto, or hereafter approved by the President, shall
constitute a violation of 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 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 Presi-
dent to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
2. After due notice and hearing, this Code, except as to provisions
required by the Act, may be modified on the basis of experience or
changes in circumstances; such modifications shall be based on the
recommendation of the Code Authority or of any interested party
or group or on the Administrator's own initiative and shall become
effective on approval of the President.
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 — Effective Date
This Code shall become effective on the tenth day after its approval
by the President.
Approved Code No. 149.
Registry No. 29»-l-ia
615
SCHBDULH A
1. Open Price ProvMons. — Members of this Industry shall file with the Code Authority
f schedule of prices, terms, discounts, and conditions of sale for the products of the
ndustry within twenty (20) days after the effective date of the Code. Such price lists
may be revised only upon 5 days' notice to the Code Authority. The Code Authority shall
immediately send copies of all price lists so filed to all members of the Industry.
Members of the Industry shall not sell their products at other prices or on other terms
or conditions than set forth in their own price list. When any member of the Industry
revises his price list, any other member of the. Industry may revise his price list accord-
inglv, t6 become effective on the same date as the revised price list first filed.
obsolete merchandise and merchandise that must be sold in emergencies may be sold
at other than the price list of the member of the Industry, with the approval of the Code
Authority.
The Code Authority shall have the power to suspend the operation of the provisions
of this Section.
2. Terms of Sale. — The terms of sale shall be: To railroads and the Government — 1%
10 days, net 30 days ;
To other customers — not more than 2% 25th proximo.
3. Commissions. — On shipments made direct to consumers, commissions may be paid to
those whose business is not regularly that of selling wiping waste and/or journal-box pack-
ing, at the rate of not more than iVc, and at the rate of 5% to bona fide salesmen of
such products. On shipments to be carried in stock by representatives, the commission
mav be %t per pound based on listed selling prices.
4. Price Changes. — Members of the Industry shall not make guarantees against decline
In prices.
5. Quotations. — Protection on quotations shall be limited to forty-eight (48) hours
from the receipt thereof, or from closing date of the inquiry covered. All quotations shail
bear the following notation :
" The price quoted herein is subject to acceptance on (date) ; otherwise quotation Is
subject to market change and our acceptance."
6. Contracts. — (a) Shipment on contracts shall be released within the contract period
and in no case snail members of the Industry make shipment on any contract after
thirty (.30) days from its expiration date.
(b) (Contracts shaft be either for the entire requirements of the customer for the con-
tract period, or for a specified poundage, with a tolerance of not over 15%.
7. Unfair Trade Practices. — The following unfair trade practices are prohibited.
(a) 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.
(b) Entering Into any contract for furnishing any products of the Industry contingent
upon the sale or purchase of any other thing, the performance of any other service or
any other contingency not appearing in the contract.
(c) Obtaining or soliciting orders from railroads directly or indirectly on the basis of
traflic considerations, by means of practices which have been condemned by the Federal
Trade Commission.
Approved Code No. 150
CODE OF FAIR COMPETITION
FOR THE
ASPHALT AND MASTIC TILE INDUSTRY
As Approved on December 7, 1933
BT
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
Recoverj'^ Act^ approved June 16, 1933, for my approval of a Code of
Fair Competition for the Asphalt and Mastic Tile 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,
A dministrator.
The White House,
December 7, 1933.
(617)
25091° 244-160 33
No^^MBER 18, 1933.
The President,
The White House.
Sir: This is a report on the Code of Fair Competition for the
Asphalt and Mastic Tile Industr;^ in the United States as revised
after the hearing held in Washin^on on November 14, 1933, in
accordance with the provisions of the National Industrial Recovery
Act.
Provisions of the Code as to Wages and Hours
This Code provides for a maximum of forty hours of work per
week, averaged over a twenty-six-week period, and^ for a raaximum
of forty-eight hours in any one week, with one and one third times
the normal wage rate for time worked in excess of eight hours per
day. The following are excepted :
(a) Executive, supervisory, and technical employees, receiving
no less than $35.00 per week, outside salesmen and personal secre-
taries of executives;
(b) Employees on emergency maintenance or repair work, who
are to be paid one and one third times the normal wage rate for time
worked in excess of forty -eight hours per week ;
(c) Watchmen, who are not to be employed more than twelve
hours per day nor six days per week.
The Code provides for minimum rates of pay of 40 cents per hour
in the North, 30 cents per hour in the extreme South, and 35 cents
per hour in an intermediate zone. It provides for minimum rates
of pay for office employees ranging from $15.00 to $14.00 per week,
according to the population of the city, in the trade area of which
they are employed.
The employment of persons under 18 years of age in manufactur-
ing operations and under 16 years of age in other operations is
prohibited.
Provision is made for the employment of aged or disabled em-
ployees at such wages and for such hours as stated in a certificate
issued by a State authority designated by the United States Depart-
ment of Labor, provided that the number of such employees does
not exceed 5% of the total employed by any employer.
Economic Effects of the Code
This is a small industry employing less than 400 persons, but one
which was growing rapidly until the year 1931. Present employ-
ment is approximately 25% less than in 1931 and approximately the
same as in 1929. The volume of sales has declined approximately
50% since 1931 and income from sales has declined by a much higher
percentage due to the lower unit prices now prevailing.
Most of the labor provisions of this Code have already been
adopted by the industry. Since June of this year, the number of
employees has increased approximately 25%, the average hourly
earnings about 20% and the total weekly earnings of employees about
(618)
619
6%. The minimum wages proposed in the Code are from 80% to
100% higher than the lowest wages paid by some manufacturers in
June of this year.
Price cutting in this industry has reached a point where sales are
frequently made below the actual cost of materials. The Code should
help to correct this evil.
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
Asphalt and Mastic Tile 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,
Administrator.
CODE OF FAIR COMPETITION
FOR THE
ASPHALT AND MASTIC TILE INDUSTRY
Article I — Purposes
To effectuate the policies of Title I of the National Industrial Re-
covery Act the following provisions are established as a Code of
Fair Competition for the Asphalt and Mastic Tile Industry.
Article II — Definitions
Section 1. The term " Products " means Asphalt Tile, Asphalt
Tile Bases, Tile Adhesives, Underlayment Materials (including Felt
and Primer), and Finishes. Asphalt Tile is a thermoplastic ma-
terial manufactured of asphalts, or plastics, or resins, or any combi-
nation of these materials, together with mineral and/or vegetable
fillers or reinforcing materials, and mineral and/or vegetable color
pigments, in the shape of tiles or sheets in its finished form, and less
than one half inch in thickness and used for flooring purposes.
Sec. 2. The term " Industry ", as used herein, includes the busi-
ness of manufacturing, and selling by manufacturers, the Products,
and such branches or subdivisions thereof as may from time to time
be included under the provisions of this Code.
Sec. 3. The term " Member of the Industry " includes anyone
engaged in the Industry as above defined, either as an employer or
on his own behalf.
Sec. 4. The term " Member of the Code " includes anyone who
has signified his assent to this Code by complying with the provi-
sions of Paragraph (g) of Section 1 of Article VI.
Sec. 5. The term " Employee ", as used herein, includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of tne 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 "Association " means the Asphalt and Mastic
Tile Association, an unincorporated association having an office at
41 East 42nd Street, New York City.
Sec. 8. 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.
(620)
621
Sec. 9. The term " The effective date of the Code " means the
second Monday after the Code shall have been approved by the
President.
Sec. 10. Population, for the purposes of this Code, shall be deter-
mined by reference to the 1930 Federal Census.
Aeticle III — Hours
Section 1. Except as provided for in Section 2 of this Article no
employee shall work or be permitted to work in excess of an average
of more than forty (40^ hours per week in any twenty-six (26) week
period — that is, 1,040 liours in any twenty-six (26) week period —
and in no event more than forty-eight (48) hours in any one week,
nor more than six (6) days in any one week. In the event an em-
ployee is worked more than eight (8) hours in any one day, one and
one third times the normal wage rate shall be paid for the time
worked in excess of eight hours in one day.
Sec. 2. The provisions of the foregoing section shall not apply to:
(a) Any employee on emergency maintenance, or emergency repair
work involving break-downs or protection of life or property, who,
however, shall be paid at the rate of one and one third times the
normal wage rate for time worked in excess of forty-eight (48) hours
in any one week.
(h) Employees regularly employed in an executive, supervisory, or
tecnnical capacity receiving in no week in which they are employed
less than Thirty-Five Dollars ($35.00) per week. This exception,
however, shall not apply to foremen regularly engaged in manual
labor.
(c) Outside salesmen, and personal secretaries of executives.
(d) Watclmien, with the reservation, however, that they shall
not work more than twelve (12) hours in any one day, nor more
than six (6) days in any one week.
Sec. 3. No employer shall knowingly permit any employee to
work any time wnich when totalled with that already performed
with another employer or employers exceeds the maximum specified
in this Article III.
Abticle IV — Wages
Section 1. No employee shall be paid at less than the following
rates :
300 per hour in the Southern Section of the Industry.
350 per hour in the Middle Section of the Industry.
400 per hour in the Northern Section of the Industry.
This minimum wage shall apply to common labor or other totally
unskilled labor. Other classes of labor, including all pieceworkers,
shall be compensated at a rate above this minimum. The above
minimum rate shall be exempt from any charge and/or deduction
by the employer.
Sec. 2. The Southern Section of the Industry shall be defined as
follows: The States of Florida, Georgia, Alabama, Mississippi,
Louisiana, Texas, Arizona, New Mexico, and South Carolina.
The Middle Section of the Industry shall be defined as follows:
The States of North Carolina, Tennessee, Arkansas, Oklahoma.
All of the other States of the Union are designated as the North-
em Section of the Industry.
622
Sec. 3. Accounting, clerical, office, or sales employees (excluding
outside salesmen) in any office, department, or establishment shall
not be paid less than at the rate of Fifteen Dollars ($15.00) per week
in any city of 500,000 population or over, or in the immediate trade
area of such city; and not less than at the rate of Fourteen Dollars
and Fifty Cents ($14.50) per week in any city of between 250,000
and 500,000 population, or in the immediate trade area of such c^ty ;
and not less than at the rate of Fourteen Dollars ($14.00) per week in
any city of less than 250,000 population.
Sec. 4. This Article establishes a minimum rate of pay regard-
less of whether an employee is compensated on a time-rate, piece-
work, or other basis.
Sec. 5. Female employees performing substantially the same work
as male employees shall receive the same rates of pay as male em-
ployees.
Sec. 6. Employers shall make payments of all wages due in lawful
currency or by negotiable check therefor payable on demand at least
twice a month.
Sec. 7. Employers shall not reduce the rates of wages for em-
ployees whose rates are now in excess of the minimum rate of wages
herein provided (notwithstanding that the number of hours worked
in such employment may be hereby decreased) and where in any
case an employer has not increased the rates of wages for such em-
ployees prior to the effective date of this Code by an equitable read-
justment of all such wage rates such employer shall readjust all such
wage rates. This provision shall be interpreted in the same manner
that paragraph 7 of the President's Reemployment Agreement has
been interpreted by the Administrator in Interpretations Nos. 1
and 20.
Article V — General Provisioxs
Section 1. No persons under 16 years of age shall be employed
in the Industry nor anyone under 18 year,s of age in manufacturing
operations.
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 employ-
ment or age certificates or permits showing that the employee is of
the required age.
Sec. 2. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shaU
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.
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 refrain from joining, organizing, or assisting a labor organization
of hi^ own choosing.
Sec. 4. Employers shall comply with the maximum hours uf labor,
minimum rates of pay, and other conditions of employment approved
or proscribed by the President.
623
Sec. 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, hour,s of work, or health, fire,
or general working conditions than under this Code.
Seo. 6. Employers shall not reclassify employees or duties of
occupations performed by employe4?.s so as to defeat the purposes
of the Act.
Sec. 7. Each employer shall post in conspicuous places in each
department full copies of this Code.
Sec. 8. A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on light work
at a wage below the minimum established by this Code if the em-
ployer 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.
Each employer shall file with the Code Authority a list of all such
persons employed by him; the number of such employees shall not
exceed five (5%) percent.
Sec. 9. Every employer shall make reasonable provision for the
safety and health of his employees at the place and during the hours
of their employment.
Article VI — Administration
To further effectuate the policies of the Act a Code Authority is
hereby constituted to administer the Code.
Section 1. Organization and Constitution of Code Authority:
(a) The Code Authority shall consist of three individuals or such
other member as may irom time to time be approved by the
Administrator, who snail be representatives of the Asphalt and
Mastic Tile Industry. The Administrator, in his discretion, may
appoint from one to three additional members to represent the
Administrator, who shall not, however, be vested with voting rights
and shall serve without expense to the Members of the Code.
(b) All voting members of the Code Authority shall be selected
from Members of the Code and shall be elected by a vote of two
thirds of all the Members of the Code, and said members shall be
selected between the date of approval of the Code by the President
and the effective date thereof.
(c) Every member of the Industry shall be eligible to member-
ship in the Association, and there shall be no inequitable restrictions
upon such members. Any member of the Industry desiring to
become a Member of the Association may do so by signing and
delivering to the Asphalt and Mastic Tile Association a letter
substantially in the following form, to wit :
The President, Asphalt and Mastic Tile Association,
Jfl East Jf2nd Street; New York, Neio York.
Dear Sir : The undersigned, desiring to become a member of the
Association and of the Code of Fair Competition of the Asphalt
and Mastic Tile Industry, a copy of which is annexed hereto and
marked "A", hereby assents to all of the provisions of said Code.
20091° 244-150 33 2
624
In consideration of the benefits confered by such membership, the
undersigned agrees to become a member of the Association and of
the Code and agrees to be bound by all of the provisions of the
Code and of the Constitution and By-Laws of the Association, ef-
fective as of the date on which the Code shall have been approved
by the President of the United States, or as of the date on which this
letter shall have been delivered, if delivery thereof shall have been
made subsequent to the date on which the Code shall have been
approved by the President.
Yours very truly,
By
Its
(d) The Asphalt and Mastic Tile Association shall (1) impose
no inequitable restrictions upon members, and (2) shall submit to
the Administrator two copies of its Articles of Association, Bylaws,
and Regulations, and any amendments when made thereto, together
with any other information as to membership, organization, and
activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
(e) 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.
(f) The Code Authority shall adopt its own rules of procedure
and may delegate its authority or such part thereof to such agencies
as it shall select, subject to review and approval or modification by
the Administrator.
(g) 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 bearing their
proportionate share of the reasonable expenses of its administration.
The reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Admin-
istrator. Such expenses shall be determined on the basis of volume
of business and/or such other factors as may be deemed equitable to
be taken into consideration.
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 Administrator on review to disapprove or modify any action
taken by the Code Authority.
(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 wheth^v Members of the Code are taking appropriate steps
625
to effectuate the declared policy of the Act, the Code Authority
shall:
Study conditions in the Industry and from time to time, subject
to approval of two thirds (%) of the members of the Industry, make
such recommendations to the Administrator as it deems desirable
to further the policies of the Act, and which, after such hearing as
the President may prescribe, and upon his approval, shall become
a part of this Code and shall have full force and effect as provisions
hereof; and
Report to the Administrator at such times and concerning such
conditions in the Industry as the Administrator may from time to
time require, and every Member of the Code shall file in the office
of the Asphalt and Mastic Tile Association at such time, in such
form, and for such periods as required by the Code Authority, duly
certified reports with respect to wages, hours of labor, conditions of
employment, number of employees, production, and other matters
pertinent to the proper supervision of the Industry as determined
by the Code Authority,
(b) All confidential information of any nature requested by the
Code Authority shall be collected by the Manager of the Asphalt and
Mastic Tile Association or other agency not a member of the Indus-
try selected by the Code Authority, and such information shall be
kept confidential except when required by the Code Authority for
the proper enforcement of the Code, and with the further exception
that all such information shall be fully available to the Adminis-
trator. Only such information may be so requested by the Code
Authority which is appropriate to the proper supervision of the
Industry or to the enforcement of this Code.
(c) The Code Authority shall designate an agent or agents, not
members of the Industry, to investigate complaints of violations of
the Code. The members of the Code shall facilitate all such investi-
gation by opening their correspondence, books, and accounts relating
to alleged violation for examination by such authorized agent and
by furnishing relevant information.
If, upon investigation, any complaint by a Member of the Code
of a violation of the Code shall be cleterru'ned by the Code Authority
to be substantiated in any material respect, the Member of the Code
guilty of such violation shall pay the cost thereof ; otherwise the cost
thereof shall be borne by the complainant.
All such information shall be kept confidential by the agent,
except that in the event of any such violation being substantiated
by the investigating agency the Code Authority shall be informed
and shall present evidence thereof to the proper department, agency,
or judicial branch of the Government.
The guilty member shall also be subject to all penalties provided
for in the Act.
Sec. 3. Appeals. — (a) Any interested party shall have the right
of complaint to the Code Authority, and a prompt hearing and deci-
sion shall be made thereon under such rules and regulations as it
shall prescribe, in respect to any act of any agent or agency desig-
nated by the Code Authority to act in its behalf.
(b) Any interested party shall have the right of ajjpeal to the
Administrator, under such rules and regulations as he shall pre-
626
scribe, with respect to any decision, rule, regulation, order or finding
made by the Code Authority.
Sec. 4. 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 Indus-
trial Recovery Act.
Article VII — Ptjblicity or Prices
Section 1. On or before the effective date hereof each manufac-
turer shall publish and file with the Code Authority his current prices,
discounts, and other conditions of sale, if any, which shall be uni-
form throughout the United States, and the Code Authority shall
cause copies thereof to be immediately sent to all members of the
Industry. Revised prices, discounts, and other conditions of sale
shall be published and filed from time to time thereafter with the
Code Authority by any member of the Industry to become effective
upon the date specified therein, which shall not be later than ten (10)
days after filing, and any reduced prices, or more favorable dis-
counts or other conditions of sale shall be filed with the Code Author-
ity ten days in advance of the effective date of the lower prices and/or
more favorable discounts or other conditions of sale unless the Code
Authority shall authorize a shorter period. Copies of revised price
lists and more favorable discounts and other conditions of sale with
notice of the effective date specified shall immediately be sent by the
Code Authority to all members of the Industry, who thereupon may
file, if they so desire, revisions of their price lists and/or discounts
and other conditions of sale, which shall become effective upon the
date when the revised price lists and/or discounts and other condi-
tions of sale first filed shall go into effect, provided the price lists
and/or discounts and other conditions of sale are not lower or more
favorable than the revised price lists and/or discounts and other
conditions of sale first filed. Any prices that are lower or discounts
and other conditions of sale more favorable than the price lists
and/or discounts and other conditions of sale already filed with the
Code Authority shall not become effective until they shall have been
filed with the Code Authority ten days in advance of the effec-
tive date of such new revised price lists and/or discounts and other
conditions of sale.
Sec. 2. All price lists or changes in price lists filed with the Code
Authority and all price lists or changes in price lists forwarded by
the Code Authority to members of the Industry shall be forwarded
by registered mail with a return receipt requested.
Sec. 3. The price list of every Member of the Industry shall show
prices for each classification or definition of customer described in
Section 1 (a), (b), and (c) of Article XII of this Code of Fair
Competition and shall also include prices covering the installation of
the Products of this Industry and accessories necessary to complete
installation.
627
Article VIII — Protection of Customers
Sectiox 1. In the event of an advance in price by any Member
of the Industry his tloorin*; contractors and/or dealers shall have
protection in price on all bids actually outstanding and closed con-
tracts, provided the flooring contractor and/or dealer shall —
(a) Within 14 days of such price increase notify in writing the
Member of the Industry with whom he may have executed a floor-
ing contractors' agreement of such bids as the flooring contractor
and /or dealer has outstanding;
(b) Within 10 days of the contract award, which in no event
shall exceed 45 days after the date of such price increase, place a firm
order with the Member of the Industry, with whom he may have
executed a flooring contractors' agreement, for the quantity of the
Products required to complete said contract.
Sec. 2. Every Member of the Industry shall file with the Code
Authority the details of all bids that have been filed with said
Member of the Industry by his flooring contractors and/or dealers
in order to secure price protection as defined above within 20 days
of such price increase.
Article IX — Apeltcation of Tile bt Members of the Industry
Section 1. Every member of the Industry who applies any ma-
terial shall designate and operate that part of his business as a
separate department, which department shall operate in all respects
as a flooring contractor and shall be subject to all of the terms and
conditions of any form of flooring contractors' agreement which may
be approved by the Code Authority and the Administrator, and no
member of this Industry shall sell any Product through any such
department at lower prices than published under Article VII of
this Code.
Article X — Publicity of Trade Classifications
Section 1. Within ten (10) days after the effective date of this
Code, each Member of the Industry shall publish to his trade and
file with the Code Authority all classifications which have been estab-
lished by him to determine the prices, terms, or conditions of sale
made applicable by him to the different classes of his trade, for
Eroducts covered by this Code. He shall publish to the trade and
le promptly with the Code Authority any changes made by him in
such classifications and any additional classifications.
Each member shall file at such times, in such manner, and at such
{)laces as may be designated by the Code Authority the names and
ocations of his trade, grouped according to his own stated classifi-
cations then in effect. The names and locations so filed shall be
available to the trade and to the members of the Industry, provided,
that the name of the manufacturer submitting any such names and
locations shall not be disclosed without consent except to the extent
necessary to prevent violations of this Article.
628
Article XI — Trade Practices
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited.
Section 1. False Marking or Branding. — 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.
Sec. 2. Misrepresentation 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 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 customers
or prospective customers.
Sec. 3. Commercial Bribery. — Directly or indirectly, to give or
permit to be given, or offer to give, money or anything of value
to agents, employees, or representatives of customers or prospective
customers, or to agents, employees, or representatives of competi-
tors' 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.
Sec. 4. Interference with C ontractvual 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.
Sec. 5. Giving of Prizes., Premiums., or Gifts. — The offering or giv-
ing of prizes, premiums, or gifts in connection with the sale of prod-
ucts, or as an mducement thereto, by any scheme which involves lot-
tery, misrepresentation, or fraud.
Sec. 6. The defamation of competitors by falsely imputing 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.
Sec. 7. Threats of Litigation. — The publishing or circularizing of
threats or 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.
Sec. 8. Espionage of Competitors. — Securing confidential informa-
tion 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.
Sec. 9. Selling at Less than Published Prices. — The selling of any
Product to any purchaser thereof at less than the published price
applicable to such class of purchaser; or to effect a lower price by
629
any means whatsoever, either directly or indirectly, or by any
subterfuge, or to use or effect a lower price than that published for
all customers of the same class.
Sec. 10. Secret Rebates. — 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.
Sec. 11. Belling Below Cost. — The selling of the Product below
the manufacturer's individual cost except to meet any price pub-
lished by another manufacturer in accordance with Article VII;
in meeting these prices the manufacturer shall comply with all the
provisions of Article VII. Cost shall be determined by such method
as is prescribed by the Code Authority and approved by the
Administrator.
Sec. 12. Consignment^ Free Goods, or False Billing. — Shipping
goods on consignment or storing goods in any place where a flooring
contractor or dealer has any interest, or hiring a warehouse from
customer except where the customer may have or own an interest in
a public warehouse in which the customer's place of business is
not located ; or in any way delivering free goods to any customer or
prospective customer; or invoicing goods to any other person than
the person by whom payment is to be made; or making any ficti-
tious invoice for any shipment; paying a price in excess of the
prevailing open-market price for any product of this Industry* pay-
ing for materials of his own manufacture more than the original
net delivered cost thereof.
Sec. 13. Informing any customer or prospective customer, directly
or indirectly, of any change or contemplated change in any price
and/or discount prior to the date on which such price and/or discount
is to be published to the trade.
Sec. 14. Other Unfair Practices. — Nothing in this Code shall limit
the effect of any adjudication by the Courts or holding by the Fed-
eral 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 of this
Code.
Article XII — Merchandising Plan
The following shall constitute the Merchandising Plan of the
Industry :
Section 1. Classiii^ation of Customers. — The following classifica-
tions of customers shall be used by all members of the Industry when
publishing to the trade and filing with the Code Authority schedules
of prices, discounts, allowances, rebates, or terms of sale and notices
of changes therein. If said classification by virtue of its application
works hardship on any customer, such customer may appeal to the
Code Authority which shall have power to reclassify such customer
as justice requires.
630
(a) Flooring Contractor: A flooring-covering Contractor who
actively engages in the solicitation and installation of the Product,
who possesses a good reputation for high quality workmanship and
business integrity; who will sign a standard form of contract with
a single member of the Industry for the purchase of his entire
requirements, which standard form of contract shall be designed to
conform to the practice under and the provisions of the Code, and to
be approved by the Code Authority and the Administrator.
(b) Dealer: A floor-covering contractor who engages in the solici-
tation of and/or installation of the Product; who possesses a good
reputation for high quality workmanship and business integrity,
but who otherwise does not comply with the qualifications of a floor-
ing contractor.
(c^ Consumer: Any customer who purchases the Product for use
ancl installation for himself and not for resale.
Sec. 2. Method of Listing Flooring Contractors. — Each member
of the Industry shall determine his own trade classification of cus-
tomers, and when determined shall file with the Code Authority lists
of flooring contractors and dealers classified.
Sec. 8. Segregation of Items. — In all bids, proposals, quotations,
and invoices involving materials other than the Product, the price
to be charged on each shall be segregated so that the product shall
be separate and distinct from all other items.
Article XIII — General
Section 1. Nothing contained in the Code shall be deemed to con-
etitute any of the members thereof partners for any purpose. No
member of the Code shall be liable in any manner to anyone for
any act of any member or agent of the Code Authority or oi the As-
sociation. 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 or of the Association, 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. 2. 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 Act, from time to time
to cancel or modify any order, approval, license, rule, or regulation
issued under said Act.
Sec. 3. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modification to be based upon application to the Ad-
ministrator, and such notice and hearing as he shall specify, and to
become effective on approval of the President. The Members of this
Industry assenting to this Code do not thereby consent to any
modification thereof, and they reserve the right to object individually
or jointly to any such modification.
The provisions of this Code shall remain in effect until and unless
modified or eliminated in accordance with the foregoing provisions
631
of Section 2 hereof and of tliis Section 3, or until the expiration of
the Act, namely, June 16, 1935, or sooner, if the President shall, by
proclamation, or Congress shall, by joint resolution, declare the
emergency recogTiized oy Section 1, Title 1, of the Act, has ended.
Article XIV — Effecti\'e Date
This code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 150.
Registry- No. 1003-03.
o
LABOR PROVISIONS
31243—34 1
EXECUTIVE ORDER
Labor Provisions for the Code of Fair Competitiox for the
Retail Food and Grocery Trade
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 labor
provisions for the retail food and grocery trade, and hearings hav-
ing been held thereon by the Administrator pursuant to Executive
order of June 26, 1933, and amendment thereto of October 20, 1933,
and an application having been duly made to the Administrator for
approval of the labor provisions for the retail food and grocery
trade at this time, and the Administrator having rendered his report
containing an analysis of said labor provisions, together with his
recommendations and findings with respect thereto, and the Adminis-
tration having found that the said labor provisions comply in all
respects with the pertinent provisions of title I of said act, and that
the requirements of subsection (a) of section 7 and subsection (b) of
section 10 of the 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 labor
provisions for the retail food and grocery trade be and are hereby
approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Adininist7'ator.
The White House,
November 15, 1933,
634
LETTERS OF TRANSMITTAL
November 4, 1933.
The formal hearing on these Labor Provisions was held on October
.■), 1033, pursuant to a notice issued by the Secretary of Agriculture
September 27, 1933, under Title I of the National Industrial
Recovery Act.
in conformity with the procedure as agreed upon by the Legal
Divisions of the Agricultural Adjustment Administration and the
National Recovery Administration, it is requested that these provi-
sions should be transmitted to the President through the Secretary
of Agriculture, and a letter of transmittal has been prepared for the
Administrator's convenience.
The Secretary of Agriculture will simply transmit these provisions
to the President.
November 4, 1933.
Honorable Henry A. Wallace,
Secretary of Agriculture^
Washington^ D.G.
Dear Mr. Secretary : The Labor Provisions for the Retail Food
and Grocery Trade have been submitted to me for recommendation
to the President, for his approval, pursuant to Executive Order of
June 26, 1933.
I am advised that, inasmuch as the hearing on these provisions was
held pursuant to Notice issued by you on September 28, 1933, it is in
order for you to formally transmit these Labor Provisions for the
Retail Food and Grocery Trade to the President.
I therefore request that the Labor Provisions and supporting docu-
ments enclosed herewith be forwarded now to the President. I will
greatly appreciate your kind offices in this matter.
Very truly yours,
Hugh S. Johnson,
A dminis trot or.
635
November 4, 1933.
The President,
TTie White House.
Sir: I have the honor to submit and recommend for your approval
the Labor Provisions for the Retail Food and Grocery Trade.
By Executive Order of June 26, 1933, and amendment thereto of
October 20, 1933, the power to approve or disapprove provisions of
any Code of Fair Competition referring to " the determination and
administration of provisions relating to hours of labor, rates of pay,
and other conditions of employment " in trades, industries, or sub-
divisions thereof, and engaged principally in the handling of all
foods and foodstuffs, are reserved to the President pursuant to the
authority vested in him by Title I of the National Industrial Recov-
ery Act. Pursuant to this Executive Order the National Recovery
Administration held a public hearing on the Labor Provisions for
the Retail Food and Grocery Trade on October 5. 1933, in the
Auditorium of the Chamber of Commerce of the United States of
America, and the Deputy Administrator in charge has recommended
the approval of these provisions in the report transmitted herewith,
which I approve and adopt.
In the report of the Deputy Administrator it appears that :
(1) The provisions relating to maximum hours of labor are be-
lieved to be such that employment and purchasing power in the
trade will be restored to at least the 1929 level.
(2) No employer in the trade will emplo}^ any minor under the age
of (16) years, except that persons fourteen (14) and fifteen (15)
years of age may be employed during such hours as will not conflict
with hours of day school ; provided, however, that when a State law
specifies a higher minimum age, no member of the trade shall em-
ploy within said State any person below the age specified by such
State law.
(3) Briefs were filed and statements were made at the hearing on
these provisions which describe conditions of employment in the re-
tail stores, and living conditions, and the provisions as contained in
the Code will, it is believed, raise the standard of living above that
of any previous period in the history of the Retail Food and Grocery
Trade.
I find that:
(1) The Labor Provisions for the Retail Food and Grocery Trade
submitted herewith comply 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
(2) The associations submitting the Code impose no inequitable
restrictions on admission to membership and are truly representative
of the Retail Food and Grocery Trade ; and that
(3) The Labor Provisions are not designed to promote monopolies
or monopolistic practices or to eliminate or oppress small enterprises,
and will not operate to discriminate against them, and will tend to
effecttuite the policy of Title I of the National Industrial Recovery
Act.
Accordingly, I hereby recommend the approval of the Labor Pro-
visions for the Retail Food and Grocery Trade.
Respectfully,
Hugh S. Johnson.
A dministrator.
636
LABOR PROVISIONS FOR THE RETAIL FOOD AND
GROCERY TRADE
To effectuate the policies of Title I of the National Industrial
Recovery Act, and pursuant to the Executive Order of the President
of the United States, dated June 26, 1933, and amendment thereto
of October 20, 1933, reserving to the National Recovery Administra-
tion the power and function to determine and administer provisions
relating to hours of labor, rates of pay, and other conditions of
employment with respect to trades engaged in the handling of f(»od
and foodstuffs, the following provisions are established as a Code of
Labor Provisions for the Retail Food and Grocery Trade.
Article I — Request for Separate Code
Any division of the retail food and grocery 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 Labor Provisions. The Administrator shall determine
whether such division of the retail food and grocery trade shall
operate under this Code or under a separate Code and may, if jus-
tice requires, 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 Labor Provisions for such division.
Article II — Definitions
Section 1. Retail food and grocenj trade. — The term " retail food
and grocery trade " as used herein shall mean all selling of food
and/or grocery products to the consumer and not for purposes of
resale in any form, in the continental United States excluding the
Panama Canal Zone, but shall not include the selling of food in res-
taurants for consumption upon the premises, or in confectioners'
stores, or the selling of milk or its products by delivery from house
to house upon regular routes. It is provided, however, that the term
shall not include the selling of any food or grocery products which
is now or may hereafter be governed by a separate code approved by
the President of the United States; and provided further, that this
Code shall not apply to employers engaged only locally in retail
trade who do not employ more than five persons and who are located
in towns of less than 2.500 population (according to the 1930 Federal
Census), which are not in the immediate trade area of a city of
larger population.
Sec. 2. Food and grocery reta'der. — The term " food and grocery
retailer " as used herein shall mean any individual or organization
engaged wholly or partially in the retail food and grocery trade.
Sec. 3. Retail food and grocery estahlishment. — The term "" retail
food and grocerv establishment " or " establishment " as used herein
637
shall mean any store, department of a store, shop, stand, or other
place where a food and grocery 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 food and
grocery trade.
Sec. 4. Employee. — The term " employee " as used herein shall
mean any person employed by any food and gi'ocery retailer, but
shall not include persons employed principally in the selling at retail
of products not included within the definition of retail food and
grocery trade.
Sec. 5. Executive. — The term " executive " as used herein shall
mean an employee responsible for the management of a business or a
recognized subdivision thereof.
Sec. 6. Maintenance employee. — The term " maintenance em-
ployee " as used herein shall mean an employee essential to the up-
keep and/or preservation of the premises and property of a retail
food and grocery establishment.
Sec. 7. Outside service employee. — The term " outside service em-
ployee " as used herein shall mean an employee engaged primarily in
delivering merchandise outside the store, and shall include stable and
garage employees.
Sec. 8. Outside salesm,an. — The term " outside salesman " as used
herein shall mean a salesman who is engaged not less than sixty (60)
percent of his working hours outside the establishment, or any branch
thereof by which he is employed.
Sec. 9. Watchman. — The term " watchman " as used herein shall
mean an employee engaged primarily in safeguarding the premises
and property of a retail food and grocery establishment.
Sec. 10. Junior employee. — The term " junior employee " as used
herein shall mean an employee under eighteen (18) years of age.
Sec. 11. Apprentice employee. — The term " apprentice employee "
as used herein shall mean an employee with less than six (6) months'
experience in any division of the retail food and grocery trade.
Sec. 12. Part-time employee. — The term " part-time employee "
as used herein shall mean an employee who works for less than the
maximum work week.
Sec. 13. South. — 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.
Sec. 14. Population. — Population shall be determined by reference
to the Fifteenth Census of the United States (United States Depart-
ment of Commerce. Bureau of the Census, 1930).
Article III — Effective Date and Expiration Date
This Code shall become effective on tlie seventh day after it shall
have been approved by the President of the United States, and shall
continue in effect until December 31, 1933. provided that if prior to
such date the associations presenting this Code shall request that
the same shall be continued, then it shall continue in effect until
the expiration of the time contained in such request.
638
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 interference, restraint,
or coercion of employers of labor, or their agents, in the designation
of such representatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
(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. Child labor. — On and after the effective date of this Code,
no person under the age of sixteen (16) years of age shall be
employed, except that persons fourteen (14) and fifteen (15) years
of age may be employed either —
(a) For a period not to exceed three (3) hours per day on six (6)
days per week ; or
(b) 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 persons under the age of sixteen
(16) years shall be employed in delivery 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 employed within such State.
Article V — Store Hours and Hours or Labor
Section 1. Basic hours of labor. — No employee, except as here-
after provided, shall work more than forty-eight (48) hours per
week, nor more than ten (10) hours per day, nor more than six (6)
days per week.
Sec. 2. Exception to maximum hours of labor — -(a) WatchTnen
amd outside salesmen. — The maximum periods of labor prescribed in
Section 1 of this Article shall not applj'^ to watchmen or outside
salesmen, but in no case shall such employees work more than six (6)
days per week.
(b) Maintenance and outside service employees. — 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 in 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 3
of this Article, executives receiving $35 or more per week in cities
639
of over 500,000 population, or receiving $30 or more per week in
cities of 100,000 to 500,000 population, or receiving $27.50 or more
per week in cities of 25,000 to 100,000 population, or receiving $25
or more per week in cities, towns, and villages and other places under
25,000 population ma}^ work in excess of the maximum periods of
labor prescribed in Section 1 of this Article.
It is provided, however, that an establishment which operates a
grocery and meat department as separate units shall be permitted to
exempt one worker in addition to the proprietor or executive as pro-
vided above from all restrictions upon hours, provided that such
additional worker shall not receive less than $25 per week.
In the South executives receiving not less than 10 percent below
the salaries stipulated above may work in excess of the maximum
periods of labor.
It is provided, however, that in no case shall executives work in
excess of one half hour above the established daily store-operating
hours.
Sec. 3. L'miitation upon nvmiber of persons working m excess
of the maximwm periods of labor prescribed in Section 1. — Notwith-
standing the provisions of the foregoing Sections of this Article, the
total number of workers in any grocery or meat department (whether
such workers are executives, proprietors, partners, persons not re-
ceiving monetary wages, or others), which shall be permitted to
work in excess of the maximum periods of labor prescribed in
Section 1 of this Article shall not exceed the following ratio :
In grocery or meat departments comprised of twenty (20) workers
or less, the total number of workers permitted to work in excess
of the maximum periods of labor prescribed in Section 1, except
watchmen, outside salesmen, and maintenance and outside service
employees) shall not exceed one (1) worker for every five (5) work-
ers or fraction thereof; in departments comprised of more than
twenty (20) workers, the total number of workers permitted to
work ' in excess of the maximum period of labor prescribed in
Section 1 (except watchmen, outside salesmen, and maintenance and
outside service employees) shall not exceed one (1) worker for every
five (5) workers for the first twenty (20) workers, and one (1)
worker for every eight (8) workers above twenty (20).
Sec. 4. Peak periods. — At Christmas, inventory, and other peak
times, for a period not to exceed two weeks in the first six months
of the calendar year and not to exceed three weeks in the second
six months, all employees may work eight (8) hours per week
above the basic work week prescribed in Section 1 of this Article,
but not more than ten (10) hours per day. Such work may be
without the payment of overtime.
Sec. 5. Hours of work to he consecutive. — The hours worked by
any employee during each day shall be consecutive, provided that
an interval not longer than one hour may be allowed for each
regular meal period, and such interval not counted as part of the
employee's working time. Any rest period which may be given
employees shall not be deducted from such employee's working
time. In communities where a longer lunch period has been cus-
tomary, any establishment may with permission of the local Food
and Grocery Council allow employees a longer period than one
31243—34 2
640
hour for lunch, but such period shall in no event exceed one and
a half hours.
Sec. 6. Extra working hour 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.
Sec. 7. Oon-fiict with State laios. — When any State law prescribes
for any class of employee shorter hours of labor than those pre-
scribed 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.
Sec. 8. Agreement for uniformity of hours. — In any retail trade
area, town, or city, the retail food and grocery establishments may by
mutual agreement of seventy five (75) percent of such establish-
ments, subject to the approval of the Administrator, establish uni-
form store operating hours which shall be binding upon all retail
food and grocery establishments within such area, town, or city, for
a period not to exceed one year, subject to renewal by similar mutual
agreement.
Hours so established shall not be less than sixty three (63) hours
per week, except that any establishment which was operating upon
a schedule of less than sixty three (63) hours per week on June
1, 1933, may continue to operate upon such basis but shall not re-
duce such hours. Hours so established shall be continuous, but every
establishment shall have the right to select the days and the hours
when it shall operate.
It is provided, however, that any delicatessen store whose principal
business is serving, preparing, and selling foods ready for immediate
consumption, may operate longer hours than those prescribed by
such local agreement.
All establishments shall register the operating hours they select
with the local administrative committee, and shall post such hours in
a conspicuous place in the establishment.
Article VI — Wages
Section 1. Basic schedule of loages. — On and after the effective
date of this Code, the minimum weekly rates of wages which shall be
paid for a work week as specified in Article IV — whether such wages
are paid upon an hourly, weekly, monthly, commission, or any other
basis — shall, except as provided hereafter, be as follows :
(a) Within cities of over BOOfiOO population no employee shall be
paid less than at the rate of $15 per week.
(b) Within cities of from 100 pOO to dOOfiOO population no
employee shall be paid less than at the rate of $14 per week.
(c) Within cities of from 25fi00 to 100 pOO population no employee
shall be paid less than at the rate of $13 per week.
(d) Within cities., towns., and villages of from 2^500 to 25/)00
population the wages of all classes of employees ^lall 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 per week, and, provided further, that no
employee shall be paid less than at the rate of $10 per week.
(e) Within cities^ towns., villages., and other places toith less than
2,500 population the wages of all classes of employees shall be
641
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 per week.
(f ) The minimum wage paid to watchmen, maintenance, and out-
side service employees shall be upon the basis of a forty-eight (48)
hour employee work week.
Sec. 2. Outside salesmen. — The minimum wages specified above
shall not apply to outside salesmen when employed on a commission
basis.
Sec. 3. Juniors and apprentices. — Junior or apprentice employees
may be paid at the rate of $1 less per week than the minimum wage
otherwise applicable; it is provided, however, that no individual em-
ployee shall be classified as both a junior and an apprentice employee;
and it is further provided that the number of employees classified as
Junior and apprentice employees, combined, shall not exceed a ratio
of one such employee to every five (5) employees or fraction thereof
up to twenty (20). and one such employee for every ten (10)
employees above twenty (20).
Sec. 4. Messenger and delivery hoys. — The minimum wage pre-
scribed in the- foregoing Section shall not aj^ply to messenger and
delivery boys in the South; provided, however, that an increase of
twenty (20) percent in the rate of pay as of June 1, 1933, of such
classes of employees shall become operative upon the effective date
of this Code up to the minimum rate of pay established in the
preceding Section.
Sec. 5. Part-time employees. — Part-time employees shall be paid
not less than at an hourly rate proportionate to the rate specified in
the foregoing Sections of this Article.
Sec. 6. Southern wage diferential. — In the South, wdthin cities of
over 25,000 population, the minimum wages prescribed in the fore-
going Sections may be at the rate of $1 less per week; within cities,
towns, and villages of from 2,500 to 25,000 population, the w^ages 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 per week, and provided further that no employee shall be paid
less than at the rate of $9 per week except as provided in Sections 2
and 3 of this Article: w^ithin 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 sluill not require an increase
in wages to more than the rate of $9 per week.
Sec. 7. Weekly loages above minimum not to he reduced. — The
weekly Avages of all employees receiving more than the minimum
wages specified in this Article shall not l>e reduced below the rates
on June 1, 1933, notwithstanding any leduction in the number of
working hours of such employees.
Sec. 8. Confiet vnth State laics. — When any State law prescribes
for any class of employee of either sex a higher minimum wage
than that ])rescribed in this Article, no employee of such class of
either sex employed within that State shall be paid less than such
State law requires.
642
Article VII — Administration
Section 1. National Food and Grocery Distributors'' Council. —
(a) G omyosition. — The National Food and Grocery Distributors'
Council shall consist of one member, elected by a fair method of
selection approved by the Administrator, by each of the national
trade associations presenting this Code of Labor Provisions, one
member similarly elected from any other association which the Ad-
ministrator upon application shall recognize as representing an
important branch of the retail food and grocery trade, and such
other members as may be elected from the wholesale food and
grocery trade in accordance with a Code of Labor Provisions for
such trade approved by the President of the United States.
The Administrator may appoint a re]3resentative or representa-
tives who may participate without vote in all activities of the
Council.
The National Food and Grocery Distributors' Council shall serve
until a successor body shall have been set up and approved by the
President of the United States to assist in the joint administration
of this Code of Labor Provisions and such other Code of Fair Com-
petition as may subsequently be approved by the President.
(b) General poioers. — The National Food and Grocery Distribu-
tors' Council shall represent the retail food and grocery trade in
the administration of this Code, and shall have, in addition to the
specific powers herein conferred, all general powers necessary to
assist the Administrator or his deputy in such administration.
(c) Reports and investigations. — The National Food and Grocery
Distributors' Council, subject to the approval or upon the request
of the Administrator, shall require from all retailers such reports
as are necessary to effectuate the purposes of this Code 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 and report the results of such investigation
to the Administrator.
(d) Recotnniendations. — The National Food and Grocery Dis-
tributors' Council may from time to time present to the Administra-
tor recommendations 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 recom-
mendations shall, upon approval by the Administrator, become oper-
ative as part of this Code.
(e) State and local councils. — The National Food and Grocery
Distributors' Council shall, subject to the approval of the Adminis-
trator, supervise the setting up of State and local councils for the
purpose of assisting in the administration of this Code within the
States and local trading areas.
(f ) Expenses. — The expenses of the administration of this Code
shall be equitably assessed and collected by the Council, subject to
the approval of the Administrator.
Sec. 2. Interpretations. — The Administrator may from time to
time, after consultation with the National Food and Grocery Dis-
tributors' Council, issue such administrative interpretations of the
643
various provisions of this Code as are necessary to elt'ectuate its pur-
poses, and such interpretations shall become operative as part of this
Code.
Sec. 3. Exceptions in cases of unusvuL or undv£ hardship. — Where
the operation of the provisions of this Code imposes an unusual or
undue hardship upon any retailer or group of retailers, such retailer
or group of retailers may make application for relief to the Admin-
istrator 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 exceptions to or modification of the provisions
of this Code as may be required to effectuate the purposes of the
National Industrial Recovery Act.
ARTICLE VIII — General
Section 1. Membership in the national retail associations repre-
sented upon the National Food and Grocery Distributors' Council
shall be open to all retailers of that branch of the retail food and
grocery trade which said associations respectivelj' represent, and
said associations shall impose no inequitable restrictions upon
admission to membership therein.
Sec. 2. The provisions of this Code hhall not be interpreted or
applied to promote monopolies or monopolistic practices or to elimi-
nate or oppress small enterprises or to discriminate against them.
Sec. 3. No establishment 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 shorten hours of
work, and lo raise wages to a living basis.
8ec. 4. This Code and all the provisions thereof are expresslj' made
subject to the right of the President, in accordance with the provi-
sions of Section 10 (b) of Title T of the National Industrial Recov-
ery Act, from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act.
Sec. 5. Such of the provisions of this Code as are not required to
be included herein by the National Industrial Recovery Act may,
with the approval of the President, be modified or eliminated as
changes in conditions 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-
<lent. to prevent unfair competitive practices and to effectuate the
other purposes and policies of Title I of the National Industrial
Recovery Act.
645
EXECUTIVE ORDER
Labor Provisions for the Code of Fair Competition for the
Wholesale Food and Grocery Trade
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 Labor
Provisions for the Wholesale Food and Grocery Trade, and hearings
having been held thereon by the Administrator pursuant to Execu-
tive order of June 26, 1933, and amendment thereto of October 20,
1933, and an application having been duly made to the Administra-
tor for approval of the Labor Provisions of the Wholesale Food and
Grocery Trade at this time, and the Administrator haying rendered
his report containing an analysis of said Labor Provisions, together
with his recommendations and findings with respect thereto, and the
Administrator having found that the said Labor Provisions comply
in all respects with the pertinent provisions of Title I of said act,
and that the requirements of subsection (a) of section 7 and sub-
section (b) of section 10 of the 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 Labor
Provisions for the Wholesale Food and Grocery Trade be and are
herebv approved.
"^ FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator.
The White House,
November 15, 1933.
646
LETTEKS OF TRANSMITTAL
November 4, 1933.
The formal hearing on these Labor Provisions was held on October
6, 1933, pursuant to a notice issued by the Secretary of Agi-iculture
September 27, 1933, under Title I of the National Industrial Re-
covery Act.
In conformity with the procedure as agreed upon by the Legal
Divisions of the Agricultural Adjustment Administration and the
National Recovery Administration it is requested that these pro-
visions should be transmitted to the President through the Secretary
of Agriculture, and a letter of transmittal has been prepared for
the Administrator's convenience.
The Secretary of Agriculture will simply transmit these provisions
to the President.
November 4, 1933.
Honorable Henry A. Wallace,
Secretary of Agncultv/re^
Washington^ D.C.
Dear Mr. Secretary: The Labor Provisions for the Wholesale
Food and Grocery Trade have been submitted to me for recommenda-
tion to the President, for his approval, pursuant to Executive Order
of June 26, 1933.
I am advised that, inasmuch as the hearing on these provisions
was held pursuant to Notice issued by you on September 28, 1933,
it is in order for you to formally transmit these Labor Provisions
for the Wholesale Food and Grocery Trade to the President.
I therefore request that the Labor Provisions and supporting doc-
uments enclosed herewith be forwarded now to the President. I will
greatly appreciate your kind offices in this matter.
Very truly yours,
Hugh S. Johnson,
A dm in is tra. tor.
647
November 4, 1933.
The President,
The White House.
Sir: I have the honor to submit and recommend for your approval
the Labor Provisions for the Wholesale Food and Grocery Trade.
By Executive Order of June 26, 1933, and amendment thereto of
October 20, 1933. the power to approve or disapprove provisions of
any Code of Fair Competition referring to "' the determination and
administration of provisions relating to hours of labor, rates of pay,
and other conditions of employment " in trades, industries, or sub-
divisions thereof, and engaged principally in the handling of all
foods and foodstuffs, are reserved to the President pursuant to the
authority vested in him by Title I of the Xational Industrial Re-
covery Act. Pursuant to this Executive Order the National Recov-
ery Administration held a public hearing on the Labor Provisions
for the Wholesale Food and Grocery Trade on October 6, 1933, in
the Auditorium of the Chamber of Commerce of the United States
of America, and the Deputy Administrator in charge has recom-
mended the approval of these provisions in the report transmitted
herewith, which I approve and adopt.
In the report of the Deputy Administrator it appears that:
(1) The provisions relating to maximum hours of labor are be-
lieved to be such that employment and purchasing power in the
trade will be restored to at least the 1929 level.
(2) No emploj^er in the trade will employ any minor under the
age of sixteen (16) years; provided, however, that when a State law
specifies a higher minimum age no member of the trade shall employ
within said State any person below the age specified by such State
law.
(3) Briefs were filed and statements were made at the hearing on
these provisions which describe conditions of emploj^ment in the
wholesale stores, and living conditions, and the provisions as con-
tained in the Code will, it is believed, raise the standard of living
above that of any previous period in the history of the Wholesale
Food and Grocery Trade.
I find that :
(1) The Labor Provisions for the Wholesale Food and Grocery
Trade submitted herewith comply in all respects with the pertinent
provisions of Title I of the Act, including, without limitation, sub-
section (a) of Section 7 and subsection (b) of Section 10 thereof;
and that
(2) The associations submitting the Code impose no inequitable
restrictions on admission to membership and are truly representative
of the Wholesale Food and Grocery Trade ; and that
(3) The Labor Provisions are not designed to promote monopolies
or monopolistic practices 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 the Labor Pro-
visions for the Wholesale Food and Grocery Trade.
Respectfully,
Hugh S. Johnson,
Ad7ninistrator.
31243—34 3
648
LABOR PROVISIONS FOR THE WHOLESALE FOOD AND
GROCERY TRADE
To effectuate the policies of Title I of the National Industrial
Recovery Act, and pursuant to the Executive Order of the President
of the United States, dated June 26, 1933, and amendment thereto of
October 20, 1933, reserving to the National Recovery Administration
the povper and function to determine and administer provisions re-
lating to hours of labor, rates of pay, and other conditions of
employment with respect to trades engaged in the handling of food
and foodstuffs, the following provisions are established as a Code
of Labor Provisions for the Wholesale Food and Grocery Trade.
Article I — Request for Separate Code
Any division of the wholesale food and grocery 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 Labor Provisions. The Administrator shall determine
whether such division of the wholesale food and grocery trade shall
operate under this Code or under a separate Code, and may, if justice
requires, 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 Labor Provis'ons for such division.
Article II — Definitions
Section 1. Wholesale food and grocery trade. — The term " whole-
sale food and grocery trade " as used herein shall mean all selling or
supplying to retailers, industrial buyers, restaurants, or institutions,
of food and/or grocery products in the Continental United States,
excluding the Panama Canal Zone, provided the term shall not in-
clude the selling or supplying of any food or grocery products which
is now or may hereafter be governed by a separate code approved
by the President of the United States.
Sec. 2. Food and grocery wholesaler. — The term " food and gro-
cery wholesaler " as used herein shall mean any individual or organi-
zation engaged wholly or partially in the wholesale food and grocery
trade.
Sec. 3. Wholesale food and grocery establishment. — The term
" wholesale food and grocery establishment " or " establishment " as
used herein shall mean any warehouse, office, or department of any
other establishment where a food and grocery wholesaler carries on
business, other than those places where the principal business is the
selling of merchandise at retail or the selling at wholesale of products
not included within the definition of wholesale food and grocery
trade.
649
Sec. 4. EvipJoyee. — The term " employee " as used herein shall
mean any person employed by any food and grocery wholesaler, but
shall not include persons employed principally in the selling or
handling of products not included within the definition of wholesale
food and grocery trade.
Sec. 5. Executive. — The term " executive " as used herein .shall
mean an employee responsible for the management of a business or
a recognized subdivision or department thereof.
8ec. 6. Professional ferson. — The term " professional person " as
used herein .shall mean research technicians, advertising sj^ecialists,
and other persons engaged in occupations requiring a special dis-
cij^line and special attainments.
Sec. 7. Outside salesman. — The term " outside salesman " as used
herein shall mean a sale,sman who is engaged not less than sixty (60)
percent of his working hours outside the establishment, or any
branch thereof, by which he is employed.
Sec. 8. Outside collector. — The term '' outside collector " as used
herein shall mean a collector of accounts who is engaged not less
than sixty (60) percent of hi,s working hours outside the establish-
ment, or any branch thereof, by which he is employed.
Sec. 9. Maintenance employee. — The term " maintenance em-
ployee " as used herein shall mean an employee who, through special
training or mechanical ability, is essential to the upkeep and/or
preservation of the premises and property of the establishment, and
shall not include such workers as porters, elevator operators, jani-
tors, and cleaners.
Sec. 10. Outside service employee. — The term " outside service
employee " as used herein shall mean an emploj-ee engaged primarily
in delivering, installing, or servicing merchandise outside the estab-
lishment, and shall include stable and garage employees.
Sec. 11. Watchman. — The term " watchman '' as used herein shall
mean an employee engaged primarily in safeguarding the premises
and property of the establishment.
Sec. 12. Junior em.ployee. — The term " junior employee " as used
herein shall mean an employee under eighteen (18) years of age.
Sec. 13. Apprentice employee. — The term " apprentice employee "
as used herein shall mean an employee with less than six (6) months'
experience in the wholesale food and grocery trade.
Sec. 14. Part-time employee. — The term " part-time employee "
as used herein shall mean an employee who works for less than the
maximum workweek.
Sec. 15. South. — The term " South " as used herein shall mean
Virginia, West Virginia, Maryland, North Carolina, South Carolina,
Georgia, Florida, Texas, Kentucky, Tennessee, Alabama, Mississippi,
Arkansas, Louisiana, Oklahoma, New Mexico, and the District of
Columbia.
Sec. 16. Population. — Population shall be determined by refer-
ence to the Fifteenth Census of the United States (United States
Department of Commerce, Bureau of the Census, 1930).
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.
650
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 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 emplo3^ee and no one seeking employment shall be required
as a condition of employment to join any companj^ union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
Sec. 2. Child labor. — On and after the effective date of this Code,
no person under the age of sixteen (16) j^ears shall be employed.
It is provided, however, that where a State Law prescribes a higher
minimum age, no person below the age specified by such State law
shall be employed within such State.
Article V — Operating Hours and Hours of Labor
Section 1. Operating hours. — No wholesale grocer shall operate on
a schedule of less than fifty-two (52) hours per week, except that
where any wholesaler was operating less than fifty-two (52) hours
per week prior to June 1, 11)33, the minimum requirement shall not
apply nor shall such hours be reduced.
Sec. 2. Basic hours of labor. — No employee, except as hereafter
provided, 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.
Sec. 3. Exceptions to maximum hours of labor — (a) Professional
persojis. — The maximum periods of labor prescribed in Section 2
of this Article shall not apply to professional persons employed and
working at their profession.
(b) Outside salesmen^ outride collectors., and %oatchmen. — The
maximum periods of labor prescribed in Section 2 of this Article
shall not apply to outside salesmen, outside collectors, and watch-
men, but in no case shall such emplo3'ees work more than six (6)
daj^s per week.
(c) Outside service and sales department employees. — The maxi-
mum periods of labor prescribed in Section 2 of this Article shall
not apply to outside service employees, nor to billing and shipping
clerks and cashiers working in conjunction with the outside service
employees in work of such nature that any inequality of hours would
interrupt the routine of the outside service department, but such
employees shall not work more than forty-eight (48) hours per
week unless they are paid at the rate of time and one third for all
hours over forty-eight (48) hours ])er Aveek.
(d) Maintenance employees. — The maximum periods of labor pre-
scribed in Section 2 of this Article shall not apply to maintenance
employees, but such employees shall not work more than forty-eight
651
(48) hours per week, unless they are paid at the rate of time and
one third for all hours over forty-eight (48) hours per week.
(e) Executives. — The maximum periods of labor prescribed in
Section 2 of this Article shall not apply to executives receiving not
less than $35.00 per week.
(f) Peak periods.— Kt Christmas and other peak times, for a
period not to exceed two weeks in the first six months of the calendar
vear and not to exceed three weeks in the second six months, em-
jployees may work not more than fifty-two (52) hours per week
and ten (10) hours per day.
For inventory purposes employees may work during one week in
each calendar year (8) hours in excess of the maximum hours
prescribed in Section 2 of this Article.
All such work may be without the payment of overtime.
Sec. 4. Hours of work to he consecutive. — The hours worked by
any employee during each day shall be consecutive, provided that
an' interval not longer than one hour may be alloAved for each regular
meal period, and such interval need not be counted as part of the
employee's working time. Any rest period which may be given
employees shall not be deducted from such employee's working time.
In communities where a longer lunch period has been customary
any establishment may, with permission of the local Food and
Grocery Council, allow employees a longer period than one hour for
lunch, iDut such period shall in no event exceed one and a half hours.
Sec. 5. Extra icorking hour 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.
Sec. 6. Gonpct with State laios. — ^When any State law prescribes
for any class of employees shorter hours of labor than those pre-
scribed 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.
Sec. 7. Agreement for uniformity of store hou/rs. — Any wholesale
trade area, containing ten (10) or more wholesale grocers, within a
town or city, may by mutual agreement of two thirds (%) of its
wholesale grocers, subject to the approval of the Administrator,
establish uniform operating hours which shall be binding upon all
wholesale grocers within such area.
Article VI — Wages
Section 1. Basic schedule of loages.—On and after the effective
date of this Code, the minimum weekly rates of wages Avhich shall be
paid for a work week as specified in Article IV— whether such wages
are paid upon an hourly, weekly, monthly, commission, or any other
basis — shall, except as provided hereafter, be as follows :
(a) Within cities of over 500,000 population, no employee shall
be paid 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 per week for a forty-
eight (48) hour work week.
(b) Within cities of frojn lOOfiOO to 500,000 population, no em-
ployee shall be paid 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 per
week for a forty-eight (48) hour work week.
652
(c) Within cities of from 25,000 to 100,000 population, no em-
ployee shall be paid 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 per
week for a forty-eight (48) hour work week.
(d) Within cities, towns, villages under 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, pro-
vided that this shall not require an increase in wages to more than
the rate of $11 per week, and provided further that no employees
shall be paid less than at the rate of $10 per week.
(e) The minimum wages of professional persons, outside collec-
tors, watchmen, maintenance and outside service employees shall be
upon the basis of a forty-eight (48) hour employee Avork week.
Sec. 2. Outside salesmen. — The minimum wages specified above
shall not apply to outside salesmen, when employed on a commission
basis.
Sec. 3. Juniors and apprentices. — Junior emplovees and appren-
tice employees may be paid at the rate of $1 less than the minimum
wage otherwise applicable. It is provided, however, that no indi-
vidual employees shall be classified as both a junior and an appren-
tice employee, and it is further provided that the number of em-
ployees classified as junior and apprentice employees combined shall
not exceed a ratio of one such employee to every five (5) employees
or fraction thereof up to twenty (20), and one such employee for
every ten (10) employees above twenty (20).
Sec. 4. Employees physically incapacitated. — Employees who are
physically incapacitated may, of their own volition, waive their
right to minimum wages, but no employer shall employ such workers
at less than the rate of $8 per week, and no employer shall include
within the classification of physically incapacitated employees more
than one employee for every twenty (20) employees, or fraction
thereof.
Sec. 5. Part-time employees. — Part-time employees shall be paid
not less than at an hourly rate proportionate to the rates specified
in the foregoing Sections of this Article.
Sec. 6. Southern loage differential. — In the South all minimum
wages specified in the foregoing Sections may be at the rate of $1 less
per week.
Sec. 7. Weekly wages above minimum not to he reduced. — The
weekly wages of all employees receiving more than the minimum
Avages specified in this Article shall not be reduced below the rates
existing on June 1, 1933, notwithstanding any reduction in the num-
ber of working hours of such employees.
Sec. 8. Confict with State laws.—\Yh&\\ any State hiAV prescribes
for any class of employees of either sex a liigher minimum Avage than
that prescribed in this Article, no employee of such class of either sex
employed within that State shall be paid less than such State law
requires.
Article VII — Administration
Section 1. National Food and Grocery Distributors'' Council — (a)
Co7Jiposition.~-The National Food and Grocery Distributors' Council
shall consist of one member, elected by a fair method of selection ap-
proved by the Administrator, by each of the national trade associa-
653
tions presenting this Code of Labor Provisions, one member similarly
elected from any other association which the Administrator upon
application shall recognize as representing an important branch of
the wholesale food and grocery trade, and such other members as may
be elected from the retail food and grocery trade in accordance with
a Code of Labor Provisions for such trade approved by the President
of the United States.
The Administrator may appoint a representative or representatives
who may participate without vote in all activities of the Council.
The National Food and Grocery Distributors' Council shall serve
until a successor body shall have been set up and approved by the
President of the United States to assist in the joint administration of
this Code of Labor Provisions and su :h otlier Code of Fair Competi-
tion as may subsequently be approved by the President.
(b) General Powers^— T\\q National Food and Grocery Distribu-
tors' Council shall represent the wholesale food and grocery trade in
the administration of this Code, and shall have, in addition to the
specific powers herein conferred, all general powers necessary to
assist the Administrator or his deputy in such administration.^
(c) Reports and investigations. — The National Food and Grocery
Distributors' Council, subject to the approval or upon the request
of the Administrator, shall require from all wholesalers such reports
as are necessary to effectuate the purposes of this Code 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 and report the results of such investigation
to the Administrator.
(d) Recommendations. — The National Food and Grocery Dis-
tributors' Council may from time to time present to the Adminis-
trator recommendations 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 Kecovery Act. Such
recommendations shall, ui)on approval by the Administrator, become
operative as part of this Code.
(e) State and local councils.— "l^^^ National Food and Grocery
Distributors' Council shall, subject to the approval of the Admin-
istrator, supervise the setting up of State and local councils for
the purpose of assisting in the administration of this Code within
the States and local trading areas.
(f) Expenses. — The expenses of the administration of this Code
shall be equitably assessed and collected by the Council, subject to
the approval of the Administrator.
Sec. 2. Interpretations. — The Administrator may from time to
time, after consultation with the National Food and Grocery Dis-
tributors' Council, issue such administrative interpretations of the
various provisions of this Code as are necessary to effectuate its pur-
poses, and such interpretations shall become operative as part of this
Code. ^ . ,,^^
Sec. 3. Exceptions in cases of unusual or undue hardship. — Where
the operation of the provisions of this Code imposes an unusual or
undue hardship upon any wholesaler or group of wholesalers, such
wholesaler or group of wholesalers may make application for relief
to the Administrator or to his duly authorized agent, and the Admin-
istrator or his agent may, after such public notice and hearing as he
654
may deem necessary, grant such exceptions to or modification of the
provisions of this Code as may be required to effectuate the purposes
of the National Industrial Recovery Act.
Article VIII — General
Section 1. Membership in the national wholesale associations rep-
resented upon the National Food and Grocery Distributors' Council
shall be open to all wholesalers of that branch of the wholesale food
and grocery trade which said associations, respectively, represent,
and said associations shall impose no inequitable restrictions upon
admission to membership therein.
Sec. 2. The provisions of this Code shall not be interpreted or
applied to promote monopolies or monopolistic practices or to elimi-
nate or oppress small enterprises or to discriminate against them.
Sec. 3. No wholesaler shall use any subterfuge to frustrate the
spirit and intent of this Code, which is, among other things, to in-
crease employment by universal covenant, to shorten hours of work,
and to raise wages to a living basis.
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 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 acti
Sec. o. 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 submitted for the approval of the President
to prevent unfair competitive practices and to effectuate the other
purposes and policies of Title I of the National Industrial Recovery
EXECUTIVE ORDERS
655
EXECUTIVE ORDER
An Executive order issued by me November 6, 1933, terminates on
November 13, 1933, the stay now in effect of the provisions limiting
machine hours in the Code of Fair Competition for the Cotton Textile
Industry, insofar as such provisions apply to the production of tire
yarns or fabrics for rubber tires. Upon application by parties affected,
and it appearing to me that such parties require further opportunity
for adjustment to the termination of said stay, and pursuant to the
authorit}^ vested in me by title I of the National Industrial Recoveiy
Act, approved June 16, 1933, and otherwise, the above-mentioned
Executive order is hereby modified by extending the termination
date of said stay to Novemebr 20, 1933, and said order is in all other
respects affirmed.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator.
By R. W. Lea.
The White House,
November 13, 1933.
[No. 6424]
656
EXECUTIVE ORDER
Delegating Authority Under Section 2 (B) and Prescribing
Rules and Regulations Under Section 10 (A) of Title I of
National Industrial Recovery Act
By virtue of the authority vested in me by sections 2 (b) and 10 (a)
of title I of the National Industrial Recovery Act, approved June 16,
1933, Public, No. 67, Seventy-third Congress, I hereby delegate
authority and prescribe rules and regulations necessary for carrying
out the purposes of title I of said act as follows:
(a) The Administrator for Industrial Recovery shall cause to be
made and shall adopt for the National Recover}^ Administration a
seal of such device as he shall approve.
(b) Copies of any books, records, papers or documents of the Na-
tional Recovery Administration and copies of any codes, agreements,
orders, rules, or regulations approved, entered into, issued or pre-
scribed under or in relation to title I of the National Industrial Re-
covery Act, authenticated under the seal of the National Recovery
Administration by the Administrator for Industrial Recovery, or by
anyone duly authorized to act for him, shall be admitted in evidence
equally with the originals thereof.
(c) The Administrator for Industrial Recovery, and any officer or
agency designated by him for the purpose, are authorized to certify
or exemplify for any purpose for which certification or exemplifica-
tion may be required or necessary, copies of any books, records,
papers, or documents of the National Recovery Act, and copies of
any codes, agreements, orders, rules, or regulations enumerated in
paragraph (b) of this order.
(d) The Administrator for Industrial Recovery is authorized to
prescribe such further rules and regulations as may be necessary to
effectuate the purposes of this order.
FRANKLIN D. ROOSEVELT.
The White House,
November 18, 1933.
[No. 6439]
657
EXECUTIVE ORDER
authokizing the administrator for industrial recovery to
Modify Agreements Entered into or Approved by the
President Under Title I of the National Industrial Re-
covery Act
WHEREAS I have heretofore issued certain Executive orders
whereby, by virtue of authority vested in me by title I of the Na-
tional Industrial Recovery Act of June 16, 1933 (Public, No. 67,
73d Cong;.), I have entered into agreements with members of certam
trades or industries providing that, upon specified conditions, they
should operate under, and be bound by, certain provisions of certain
codes of fair competition approved, or submitted for approval, under
said title I of said act; and
WHEREAS it appears desirable to make provision for the modi-
fication of, or the granting of exceptions to, or exemptions from, said
agreements in particular instances where compliance therewith
would, on account of peculiar circumstances, cause undue hardsliip;
NOW, THEREFORE, by virtue of authority vested in me by said
title I of said act, I hereby authorize and empower the x4dministrato •
for Industrial Recovery to make such modifications of, and grant
such exceptions to, and exemptions from, said agreements, or any
similar agreements hereafter entered into or approved by me by
Executive order, as he may, after investigation, find necessary in
particular instances in order to avoid undue hardsliip.
Nothing contained herein shall be constiued to relate to modifi-
cations of, exceptions to, or exemptions from, codes of fair competition
approved under said title I of said act.
FRANKLIN D. ROOSEVELT.
The Whiie House,
November 22, 1933.
[No. 6443]
658
EXECUTIVE ORDER
Executive orders issued by me November 6, 1933, and November 13,
1933, terminate on November 20, 1933, the stay now in effect of the
provisions hmiting machine hours in the Code of Fair Competition
for the Cotton Textile Industry, insofar as such provisions apply to
the production of tire yarns or fabrics for rubber tires. Upon appli-
cation by parties affected further hearings have been set for November
27, 1933, upon the issues raised with respect to such provisions.
Pursuant to the authority vested in me by title I of the National
Industrial Recovery Act, approved June 16, 1933, and otherwise, the
above-mentioned Executive orders are hereby modified by extending
the termination date of said stay until the completion of said hearings
and determination by me of the issues raised with respect to the above
provisions.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator
The White House,
November 27, 1933.
fNo. 64631
659
EXECUTIVE ORDER
In order to effectuate the policy of title I of the National Industrial
Recovery Act, approved June 16, 1933, I, Franklin D. Roosevelt,
President of the United States, pursuant to the authority vested in
me by title I of said National Industrial Recovery Act, hereby
prescribe the following rules and regulations which shall have the
effect of modifying any inconsistent provisions of any order, approval,
rule, or regulation heretofore issued under title I of said act.
1. By reason of confusion and misapprehension which has arisen
regarding the meaning of certain commercial bribery provisions in-
cluded in codes heretofore approved by me, I hereby interpret all
such provisions to mean the following:
No member of the industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose of
influencing or rewarding the action of any employee, agent, or
representative of another in relation to the business of the
employer of such employee, the principal of such agent or the
represented party, without the knowledge of such employer,
principal or party. Commercial bribery provisions shall not be
construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are
actually used for commercial bribery as hereinabove defined.
2. I further order that if commercial bribery provisions are here-
after included in codes they shall conform to the foregoing.
3. This order is intended to relate only to commercial bribery
provisions and is not intended to interfere with an industry, if it so
desires, dealing specifically with the subject of premiums in any way
it may or shall have proposed if approved by me.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator.
The White House,
November 27, 1933.
[No. 6464]
660
EXECUTIVE ORDER
Code of Fair Competition for the Retail Trade, Order No. 7,
Extension of Effective Date of Article IX, Section 4
A Code of Fair Competition for the Retail Trade was approved by
me October 21, 1933. Upon application by parties affected, and it
appearing to me that justice requires a postponement of the effective
date of article IX, Section 4 of said code, in order to allow manufac-
tiu-ers of coupons and other forms of scrip the opportunity to adjust
their business and in order to avoid a rechiction of employment among
such manufacturers, and pursuant to the authority vested in me by
title I of the National Industrial Recoveiy Act, approved June 16,
1933, and othermse, it is hereby ordered that the effective date of
article IX, section 4, be extended to July 1, 1934, tliis order to become
effective within 10 days of the date hereof unless cause to the contrary
shall have been showTi to the Administrator before that date.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator.
The White House,
November 27, 1933.
[No. 6467]
661
EXECUTIVE ORDER
A Code of Fail- Competition for the Cotton Textile Industry has
been heretofore approved b}^ me on certain terms and conditions.
In accordance with the provisions of further Executive orders cul-
minating in an Executive order, dated November 27, 1933, hearings
have been granted by the Administrator to certain persons dhectly
affected by the said code who have claimed that applications thereof
have been unjust to them and have applied for an exemption there-
from viiih reference to the limitation of the use of productive machin-
ery as applied to the production of tire yarns or fabric for rubber
tires. The application of said code with reference to said limitation
has been stayed pending a determination by me of the issues raised.
It appearing to me on the basis of the showing made at the hearings
granted the applicants above mentioned, as set forth in the report
thereon rendered to me by the Administrator, which is hereby adopted
and approved, that no case of injustice and extreme hardship requir-
ing special treatment has been made out by the above applicants,
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority and discretion vested in me
under title I of the National Industrial Recovery Act approved June
16, 1933, and otherwise, do order that the application for exemption
above described be and it is hereby denied, and that said stay shall
be terminated and the provisions of said code with reference to the
limitation of the use of productive machinery as applied to the pro-
duction of the yarns or fabrics for rubber tires shall be in full force
and effect from and after December 11, 1933.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator.
The White House,
December 4, 1933.
[No. 6476]
662
EXECUTIVE ORDER
Providing for the Submission of Statistical Information by
Persons Subject to Codes of Fair Competition
Pursuant to the authority vested in me by title I of the National
Industrial Recovery Act, upon due consideration of the facts, and
upon the report and recommendation of the Administrator for
Industrial Recovery,
I, Franklin D. Roosevelt, President of the United States, do hereby
order that every code of fair competition, agreement, and license
heretofore approved be, and hereby is, modified to provide that,
and every code of fair competition, agreement, and license hereafter
approved be upon condition that, in addition to information required
to be submitted to any code authority, all or any of the persons sub-
ject to such code, agreement, or license furnish such statistical informa-
tion as the Administrator may deem necessary for the purposes recited
in section 3 (a) of said act to such Federal and State agencies as the
Administrator may designate ; nor shall anything in any code, agree-
ment, or license relieve any person of any existing obligation to
furnish reports to Government agencies.
FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,
Administrator.
The White House,
December 7, 1933.
[No. 64791
INDEX
663
INDEX
Code
No.
Industry
65
55
111
137
112
85
.138
29
80
150
99
50
17
105
27
47
141
52
40
138
Adniiiiistratiou for Industrial Recovery:
Appointment of Hugh S. Johnson, Adminis-
trator
Appointment of Administrator as member of
each Code Authority
Authority granted to Administrator to stay
application of codes if petition is made with-
in 10 days after effective date
Authorizing Administrator to modify agree-
ments entered into or approved b}- the
President under Title I of the National In-
dustrial Recovery Act
Delegation of certain functions and powers to
Secretary of Agriculture
Government contractors must comply with
approved Codes of Fair Competition
Administration of the Petroleum Industry given to
Secretary of the Interior
Advertising Specialty Manufacturing
Air, Compressed
Air Transport
Air, Warm — Furnace Manufacturing
All-metal Insect Screen
Ambulance, Funeral Vehicle and, Supplement to
Automobile Mfg
Amendments:
Cotton Textile, No. 1
Lumber and Timber Products Industr}- Code,
Nos. 1 and 2
Oil Burner Industry Code, No. 1
Shipbuilding and Shiprepairing Industry Code.
American Petroleum Equipment
Anti-Friction Bearing
Appointment of Hugh S. Johnson as Administrator.
Appointment of Hugh S. Johnson to Serve tempo-
rarily as Member of Each Code Authority
Appointment of Central Statistical Board
Artificial Flower and Feather
Denial of Application for exemption by Kaplan
Bros
Asbestos
Asphalt and Mastic Tile
Asphalt Shingle and Roofing Manufacturing
Automatic Sprinkler
Automobile Maiuifacturing
Supplement No. 1 — Funeral Vehicle and Am-
bulance Subdivisions
Automotive Parts and Equipment Manufacturing..
Bag, Textile
Bankers
Bankers, Investment
Banks, Mutual Savings
Battery, Electric Storage and Wet Primary
Bearing, Anti-Friction
Date, 1933 I Volume
June 16 I
Sept. 29 I I
July 15 ' I
Nov. 22 III
June 26
I
Aug. 10 ! I
Aug.
29
I
Oct.
31
II
Oct.
11
I
Nov.
14
III
Nov.
27
III
Nov.
14 I
III
Oct.
9
I
Oct.
3
I
Oct.
10
T
Nov.
2
II
Nov.
27
III
June
16
I
Sept.
29
I
July
27
I
Sept.
18
1
Nov.
4
II
Nov.
I
II
Dec.
7
III
Nov.
6
II
Oct.
9
I
Aug.
26
I
Nov.
8
II
Nov.
8
II
Sept.
18
I
Oct.
3
I
Nov.
27
III
Oct.
9
I
Oct.
3
I
Nov.
27
III
Nov. 8 1 II ,671
i
Nov. 8 II i 677
664
INDEX— Continued
Industry
Date, 1933
Volume
Bedspreads, Novelty Curtain, Draperies, — and
Novelty Pillow
Beet Sugar (Labor Provisions)
Belt, Men's Garter, Suspender, and — Manufac-
turing
Belt, Women's
Bituminous Coal
Revision
Board, Central Statistical — Appointment of
Boiler Manufacturing
Boiler, Steel Tubular and Fire Box
Boot and Shoe Manufacturing
Braid, Millinery and Dress Trimming ■ — and Tex-
tile
Braiding, Knitting, • — and Wire Covering Machine.
Brass, Copper and ■ — Mill Products
Brassiere, Corset and
Denial of application for exemption by Gem-
Dandy Garter Co
Broadcasting, Radio
Buflf and Polishing Wheel
Buffing and Polishing Composition
Building Materials, Retail Lumber, Lumber Prod-
ucts— and Building Specialties
Builders Supplies Trade
Burner, Oil
Amendment
Bus, Motor
Business Furniture, Storage Equipment and Filing
Supply
Canning and Packing Machinery
Cap and Closure
Cast Iron Soil Pipe
Casting, Steel
Caulking Compounds, Waterproofing, Dampproof-
ing, ■ — and Concrete Floor Treatments Manu-
facturing
Cement
Central Statistical Board, Appointment of
Certification, rules for — of Documents
Chinaware and Porcelain Manufacturing
Cigar Container
Clay, Floor and Wall — Tile Manufacturing
Clay, Structural • — Products
Clay, Vitrified • — Sewer Pipe Manufacturing
Cleaning and Dyeing Trade
Cleaning, Laundry and Dry — Machinery Manu-
facturing
Closure, Cap and
Clothing, Men's
Coal, Bituminous
Revision ■
Coat and Suit
Denial of application for exemption by Connecti-
cut Garment Manufacturers Association
Denial of application for exemption by Assoc.
Coat and Suit Manufacturers of Portland,
Oregon
Cock, Gas
Code Authority, Appointment of Administrator to
Serve on Each
Nov. 1
Oct. 27
Nov. 4
Oct. 3
Sept. 18
Sept. 29
July 27
Oct. 3
Oct. 23
Oct. 3
Oct. 31
Oct. 3
Nov. 2
Aug. 14
Sept. 18
Nov. 27
Nov. 4
Nov. 4
Oct. 3
Oct. 3
Sept. 18
Oct. 3
Oct. 31
Nov. 4
Oct. 31
Oct. 20
Sept. 7
Nov. 2
Nov. 27
Nov. 27
July 27
Nov. 18
Nov. 27
Nov. 27
Nov. 4
Nov. 27
Nov. 27
Nov. 8
Oct. 3
Oct. 20
Aug. 26
Sept. 18
Sept. 29
Aug. 4
Sept. 7
Oct. 11
Oct. 31
Sept. 29
II
II
II
I
I
I
I
I
II
I
II
I
II
I
I
III
II
II
I
I
I
I
II
II
II
II
I
II
III
III
I
III
III
III
II
III
III
II
I
II
I
I
I
I
I
II
665
INDEX— Continued
Industry
Codes of Fair Competition, Regulations
Defining effect of certain provisions in the Codes
upon cooperative organizations
Commercial bribery provisions to be included in
codes heretofore approved
Compliance by Government Contractors with Ap-
proved Code of Fair Competition
Composition, Buffing and Polishing
Compressed Air
Concrete Masonry
Container, Cigar
Container, Glass
Copper and Brass Mill Products
Cordage and Twine, temporarily placed under Cot-
ton Textile Industry Code
Cordage and Twine, Modifving Agreement of Julv
27, 1933 :
Corset and Brassiere
Denial of application for exemption by Gem-
Dandy Garter Co
Cotton Garment
Cotton Textile
Amendment No. 1
Cordage and Twine, temporarily placed under
Denial of application for exemption from Cot-
ton Textile Industry Code
Denial of application for exemption by Ala-
bama Mills Co
Denial of application for exemption by Crystal
Springs Bleachery
Denial of application for exemption by Dwight
Mfg
Extending termination date of stay limiting
machine hours in Cotton Textile Industry
Code
Extension of sta}- limiting Machine Hours in
Cotton Textile Industry Code as applying to
rubber tire yarns
Garment Mfgrs., temporarily placed under
Pajama Mfgrs., temporarily placed under
Crane, Shovel, Dragline and
Crown Manufacturing
Crucible, Plumbago
Crushed Stone, Sand and Gravel and Slag
Crusher, Rock — ^Manufacturing
Curtain, Nottingham Lace
Curtain, Novelty—, Draperies, Bedspreads, and
Novelty Pillow
Damp-proofing, Water-proofing, — , Caulking Com-
pounds, and Concrete Floor Treatments Manu-
facturing
Defining Effect of certain provisions in the Codes
of Fair Competition upon Cooperative Organ-
izations
Delegation of certain functions and powers to
Secretary of Agriculture
Denial of application for exemptions:
Alabama Mills Co. from the Cotton Textile
Industry Code
Date, 1933
Volume
July 15
Oct. 23
Nov. 27
Aug. 10
Nov. 4
Oct. 11
Nov. 27
Nov. 27
Oct. 3
Nov. 2
July 27
Oct. 20
Aug. 14
Sept. 18
Nov. 17
Julv 9
NoV. 8
July 27
Dec. 4
Aug. 4
Aug. 4
Aug. 4
Nov. 27
Nov. 13
Julv 26
July 26
Nov. 8
Nov. 1
Oct. 23
Nov. 10
Nov. 1
Nov. 1
Nov. 1
Nov. 27
Oct. 23
June 26
Aug. 4
II
III
I
II
I
III
III
I
II
II
I
I
III
I
II
I
III
I
I
I
III 658
III
I
I
II
II
II
II
II
II
II
III
II
I
666
INDEX— Continued
Industry
Denial of application for exemptions — Continued.
Assoc. Cloak and Suit Manufacturers of Port-
land, Oreg., from the Coat and Suit Industry
Code
Connecticut Garment Manufacturers Ass'n
from the Coat and Suit Industry Code
Cotton Textile Industry from "Machine
Hours" on tire yarns and fabrics
Crystal Springs Bleachery from the Cotton
Textile Industry Code
Dwight Manufacturing Company fi'om the
Cotton Textile Industry Code
Gem-Dandy Garter Company from the Cor-
set & Brassiere Code
Greensboro Lumber Company from the Lum-
ber & Timber Products Industry Code
Kaplan Brothers from Artificial Flower &
Feather Code
Denial of applications for exemption from Cotton
Textile Industry Code
Devices, Marking
Die, Special Tool, ■ — , and Machine Shop
Distillation, Hardwood
Distributors, Industrial Supplies and Machinery
— Trade
Documents, prescribing rules for certification of
Dragline, Shovel, — and Crane
Dramatic, Legitimate Full Length — and Musical
Theatrical
Draperies, Novelty Curtain, — Bedspreads and
Novelty Pillow
Drapery, Upholstery and — Textile
Dress Manufacturing
Dress, Millinery and — Trimming Braid and Tex-
tile
Date, 1933
Volume
Drug, Retail — Trade
Dry Cleaning, Laundry and — Machinery Manu-
facturing
Dyeing, Cleaning and — Trade
Dyeing, Silk and Rayon — ■ and Printing Industry,
temporary Code Approved
Electrical Manufacturing
Electric Storage and Wet Primary Battery
Equipment, Automotive Parts and — Machinery..
Equipment, Business Furniture, Storage — and
Filing Supply
Equipment, Farm
Equipment, Machine Tool and — Distributing Trade-
Equipment, Office — Manufacturers
Equipment, Petroleum — Industry and Trade
(American)
Excelsior and Excelsior Products
Exchange, Stock — Firms
Exemptions from the President's Reemployment
Agreement of employers in towns less than 2,500
in population
Extension of the effective date of codes of fair
competition for the Retail Trade
Extension of stay for Underwear and Allied Prod-
ucts Mfctg. Ind
Oct. 11
Sept. 7
Nov. 6
Aug. 4
Aug. 4
Sept. 18
Oct. 20
Nov. 4
Dec. 4
Oct. 20
Nov. 17
Nov. 10
Oct. 23
Nov. 18
Nov. 8
Aug. 16
Nov. 1
Nov. 27
Oct. 31
Oct. 31
Oct. 21
Oct. 3
Nov. 8
July 22
Aug. 4
Oct. 3
Nov. 8
Nov. 4
Oct. 3
Nov. 27
Nov. 4
Nov. 2
Dec. 7
Nov. 4
Oct. 23
Nov. 27
Oct. 20
II
I
I
I
II
II
III
II
III
II
II
III
II
II
III
II
II
II
I
II
I
I
I
II
II
I
III
II
II
III
II
II
III
II
667
INDEX— Continued
Industry
Volume
Extension of stay limiting machine hours in Cotton
Textile Industry Code as applying to rubber-
tire yarns
Extension of termination date of stay limiting ma-
chine hours in Cotton Textile Industry code
Extinguishing, Fire — Appliance Manufacturing
Fabricated Metal Products Manufacturing and
Metal Finishing and Metal Coating
Fabricating, Reinforcing Materials
Farm equipment
Feather, Artificial Flower and
Felt Base, Linoleum and — Manufacturers
Felt, Hair and Jute
Felt, Wool - — Manufactuirng
Fertilizer
Filing, Business Furniture, Storage Equipment,
and — Supph'
Finishing, Fabricating Metal Products Mfctg. and
Metal — , and Metal Coating
Finishing, Textile — , temporarilj' placed under
Cotton Textile Industry code
Fire Extinguishing Appliance Manufacturing
Fire, Motor — Apparatus Manufacturing
Firebox, Steel Tubular and — Boiler
Firms, Stock Exchange
Fishing Tackle
Floor and Wall Clay Tile Manufacturing
Floor, Waterproofing, Dampproofing, Caulking
Compounds, and Concrete — Treatments Manu-
facturing
Flower, Artificial — and Feather
Food, Retail — and Grocery Trade Labor Provi-
sions
Food, Wholesale — and Grocery Trade Labor Pro-
visions
Forging, Machine Tool and - — Machinery
Funeral Supply
Funeral Vehicle and Ambulance Supplement to
Automobile Manufacturing
Furnace, Warm Air — Manufacturing
Furniture, Business — , Storage Equipment and
Filing Supply
Furniture Manufacturing
Garment, Cotton
Garment Manufacturers, temporarily placed under
Cotton Textile Industry code
Garter, Men's — , Suspender and Belt
Gas Appliances and Apparatus
Gas Cock
Gas, Liquefied
Gasoline Pump Manufacturing
Gear Manufacturing
Glass Container
Glove, Leather and Woolen Knit
Glycerine, Soap and — Manufacturing
Goods, Luggage and Fancy Leather
Gravel, Crushed Stone, Sand and — Slag
Grocery, Retail Food and — Trade Labor provi-
sions
Grocery, Wholesale Food and — Trade Labor pro-
visions
Nov. 13
Nov. 4
Nov. 2
Julv 21
Nov. 4
Nov 8
Oct. 23
Nov. 4
Aug. 19
Nov. 4
Nov. 27
Sept. 18
Nov. 15
Nov. 15
Nov. 8
Nov. 4
Nov. 8
Nov. 27
Nov. 4
Dec. 7
Nov. 17
July 26
Nov. 4
Nov. 27
Oct. 31
Nov. 8
Sept. 18
Nov. 14
Oct. 3
Nov. 4
Nov. 2
Oct. 3
Nov. 10
Nov. 15
Nov. 15
III
Nov.
27
III
Nov.
4
II
Nov.
2
II
Nov.
27
III
Oct.
3
I
Sept.
18
I
Sept.
18
1
Oct.
31
11
Nov.
27
III
Oct.
31
II
II
II
I
II
II
II
II
I
II
III
I
III
III
II
II
II
III
II
III
III
I
II
III
II
II
I
III
I
II
II
I
II
III
III
668
INDEX— Continued
Industry
Hair and Jute Felt
Handkerchief
Hardwood Distillation
Heat Exchange
Hosiery
Hosiery Manufacturers, temporary code approved.
Hotel
Ice
Industrial Supplies and Machinery Distributors
Trade
Information, providing for submission of Statis-
tistical — by Persons subject to Codes of Fair
Competition
Insect, All-Metal — Screen i
International Association of Garment Manufac-
turers temporarily placed under Cotton Textile
Industry code
Investment Bankers
Iron, Cast — Soil Pipe
Iron and Steel
Iron, Malleable
Ironing, Washing and^Machine Manufacturing...
Jewelry, Precious — Producing
Jewelry, Retail — Trade
Johnson, General Hugh S., appointment as Admin-
istrator
Appointment as member of each code authority.
Jute, Hair and — Felt
Knit, Leather and Woolen — Glove
Knitting, Braiding and Wire Covering Machinery.
Labor provisions:
Beet Sugar
Retail Food and Grocery Trade
Wholesale Food and GroceryTrade
Laboratory, Motion Picture
Lace Manufacturing
Lace, Nottingham — Curtain
Lacquer, Paint, Varnish and — Mfctg
Ladder Manufacturing
Laundry and Dry Cleaning Machinery Manufac-
turing
Leather Industry
Leather, Luggage and Fancy — Goods
Leather and Woolen Knit Glove
Legitimate Full-Length Dramatic and Musical
Theatrical
Lime
Date, 1933
Limestone
Linoleum and Felt Base Manufacturers
Liquefied Gas
Luggage and Fancy Leather Goods
Lumber Products, Retail Lumber, ^ — , Building Ma-
terials and Building Specialties
Lumber and Timber Products
Amendment Nos. 1 & 2
Denial of application for exemption by Greens-
boro Lumber Company
Machine, Knitting, Braiding and Wire Covering
Machine, Paper Making — Builders
Machine Shop, Special Tool, Die, and
Machine Tool & Equipment Distributing Trade
Oct. 31
Oct. 9
Nov. 10
Oct. 11
Aug. 26
July 26
Nov. 17
Oct. 3
Oct. 23
Dec. 7
Nov. 14
July 26
Nov. 27
Sept. 7
Aug. 19
Nov. 27
Nov. 4
Nov. 27
Nov. 27
June 16
Sept. 29
Oct. 31
Nov. 4
Oct. 3
Oct. 27
Nov. 15
Nov. 15
Sept. 7
Aug. 14
Nov. 1
Oct. 31
Nov. 8
Volume
Aug. 16
Oct. 3
Nov. 14
Sept. 18
Nov. 8
Oct. 3
Oct. 3
Aug. 19
Oct. 9
Oct. 20
Oct. 3
Dec. 7
Nov. 17
Nov. 27
II
I
II
I
I
I
III
I
II
III
III
I
III
I
I
III
II
III
III
I
I
II
II
I
II
III
III
I
I
II
II
II
Oct. 3 I
Sept. 7 I
Oct. 3 i I
Nov. 4 I II
I
I
III
I
II
I
I
I
I
II
I
III
III
III
669
INDEX— Continued
103
93
149 ,
61 I
72 :
68
35
132
59
133
150
127 i
15 i
94 1
84 i
81 j
69
116
124
22
66
108
46
.147
8
52
119
131
78
79
89
25
49
75
72
71
144
120
Machine Tool and Forging Machinery
Machine, Washing and Ironing — Manufacturing
Machined Waste Manufacturing
Machinery, Industrial Supplies and — Distributors
Trade
Machinery, Packaging — Industry and Trade
Machinery, Road — Manufacturing
Machinery, Textile
Malleable Iron
Marking Devices
Masonry, Concrete
Mastic Tile, Asphalt and
Materials, Reinforcing — Fabricating
Men's Clothing
Men's Garter, Suspender and Belt
Metal, Fabricated — Products Manufacturing and
Metal Finishing and Metal Coating
Mill, Copper and Brass — Products
Millinery and Dress Trimming Braid and Textile.
Modification of Executive Order of July 27, 1933,
placing the Cordage and Twine Industry tem-
porarily under Cotton Textile Industrj' Code
Modification of President's Reemplojment Agree-
ment
Nov. 8
Nov. 4
Dec. 7
Oct. 23
Oct. 31
Oct. 31
Oct. 3
Nov. 27
Oct. 20
Nov. 27
Dec. 7
Nov. 27
Aug. 26
Nov. 4
Nov. 2
Nov. 2
Oct. 31
Oct. 20
Mop Stick
Motion Picture
Motion Picture Laboratory
Motor Bus J
Motor Fire Apparatus Manufacturing
Motor Vehicle Retailing Trade
Motor Vehicle Storage and Parking Trade
Musical, Legitimate Full Length Dramatic and —
Theatrical
Mutual Savings Banks
National Industrial Recovery Act
Administration of
Authorizing Administrator to modify agree-
ments entered into or approved by the
President under Title I of the
Exemption from the President's Reemploy-
ment Agreement of employers in towns less
than 2,500 population
Procedure to be followed for tariff relief under
section 3 (e) of the
Newsprint
Nipple, Pipe — Manufacturing
Nottingham Lace Curtain
Novelt}' Curtain, Draperies, Bedspreads and Nov-
elty pillow
Office Equipment Manufacturers
Oil (See Petroleum).
Oil Burner
Amendment
Optical Manufacturing
Packing, Canning and- — Machinery
Packaging Machinery
Paint, Varnish and Lacquer Manufacturing
Pajama Manufacturers temporarily placed under
the Cotton Textile Industry Code
Paper Making Machine Builders'
Paper and Pulp
Aug. 16
Oct. 9
June 16
Aug. 10
Oct. 23
Oct. 23
Nov. 17
Nov. 27
Nov. 1
Nov.
Nov.
9
Sep. 18
Oct. 3
Oct.
Oct. 31
Oct. 31
Oct. 31
Jul. 26
Dec. 7
Nov. 17
II
II
III
II
II
II
I
III
II
III
III
III
I
II
II
II
II
II
Oct.
11
I
Nov.
14
III
Nov.
27
III
Sept.
7 1
I
Oct.
31
11
Nov.
8
II
Oct.
3
I
Dec.
7
III
Nov. 22 1 III
II
II
III
III
II
II
II
I
I
I
II
II
II
I
III
III
577
461
607
47
187
137
449
393
13
407
617
285
229
471
327
289
149
695
734
57
215
299
107
629
563
577
81
623
683
729
657
699
700
103
379
253
263
413
339
703
599
219
187
169
723
543
115
670
INDEX— Continued
Industry
Date, 1933
Volume
Paperboard Manufacturers
Parking Trade, Motor Vehicle Storage and
Parts, Automotive — and Equipment Manufactur-
ing
Petroleum
Administration given to Secretary of Interior
Prohibition of Transportation of Unlawful
Production
Prohibition of Transportation of Unlawful
Production
Petroleum Equipment Industry & Trade (Ameri-
can)
Photographic Manufacturing
Piano Manufacturing
Picture, Motion
Picture, Motion — Laboratory __
Pillow, Novelty Curtain, Draperies, Bedspreads &
Novelty
Pipe, Cast Iron Soil
Pipe Nipple Manufacturing
Pipe, Vitrified Clay Sewer — Manufacturing
Planning and Fair Practice Agency for Shipbuilding
and Shiprepairing Industry Code
Playthings, Toy and
Plug, Wood
Plumbago Crucible
Polishing Wheel, Buff and — Industry
Polishing, Buffing and — Composition
Porcelain, Chinaware and — Manufacturing
Precious Jewelry Producing
President's Reemployment Agreement Modification.
President's Reemployment Agreement exempting
employers in towns of less than 2,500 population _ _
Printer's Rollers
Printing, Silk and Rayon Dyeing and — Industry,
temporary code approved
Procedure to be followed for tariff relief under Sec-
tion 3 (e) of the National Industrial Recovery
Act
Pulp, Paper and
Pump Manufacturing
Pump, Gasoline — Manufacturing
Pyrotechnic Manufacturing
Radio Broadcasting
Rayon and Synthetic Yarn Producing
Rayon, Silk and — Dyeing and Printing Industry,
temporary code approved
Reinforcing Materials Fabricating
Retail Drug Trade
Retail Food and Grocery Trade, labor provisions
Retail Jewelry Trade
Retail Lumber, Lumber Products, Building Ma-
terials, and Building Specialties
Retail Trade
Extension of effective date
Retailing, Motor Vehicle — Trade
Revision, Bituminous Coal
Road Machinery Manufacturing
Rock Crusher Manufacturing
Rollers, Printers'
Roofing, Asphalt Shingle and — Manufacturing
Nov. 8
Dec. 7
Nov. 8
Aug. 19
Aug. 29
Jul. 11
Jul. 14
II
III
II
I
I
Nov.
2
II
Aug.
19
I
Nov.
4
11
Nov.
27
III
Sep.
7
I
Nov.
1
II
Sep.
7
I
Nov.
27
III
Nov.
27
III
Sep.
22
I
Nov.
4
11
Nov.
14
III
Oct.
23
II
Nov.
4
II
Nov.
4
II
Nov.
27
III
Nov.
27
III
Oct.
11
I
Oct.
23
II
Nov.
8
II
Jul.
22
I
Oct.
23
II
Nov.
17
III
Oct.
11
I
Sep.
18
I
Dec.
7
111
Nov.
27
III
Aug.
26
I
Jul.
22
I
Nov.
27
III
Oct.
21
II
Nov.
15
III
Nov.
27
III
Oct.
3
I
Oct.
21
II
Nov.
27
III
Oct.
3
I
Sept.
29
I
Oct.
31
11
Nov.
1
II
Nov.
8
II
Nov.
6
II
671
INDEX— Continued
Industry
Saddlery Manufacturing
Salt Producing
Sand, Crushed Stone, — and Gravel and Slag In-
dustries
Savings, Mutual — Bank
Scientific Apparatus
Screen, All-Metal Insect
Sewer, Vitrified Clay — Pipe Manufacturing
Shingle, Asphalt ■ — and Roofing Manufacturing
Shipbuilding and Shiprepairing
Amendment
Shoe, Boot and
Shovel, Dragline & Crane
Silk and Rayon Dyeing and Printing Industry, tem-
porary code approved
Silk Textile
Slag, Crushed Stone, Sand & Gravel, and — In-
dustry
Soap and Glycerine Manufacturing
Special Tool, Die and Machine Shop
Specialty , Advertising
Sprinkler, Automatic
Statistical, Central — Board, Appointment of
Statistical, providing for submission of ■ — ■ informa-
tion by persons subject to codes
Steel, Iron and
Steel Casting
Steel Tubular and Firebox Boiler
Stick , Mop
Stock Exchange Firms
Stone, Crushed — Sand and Gravel and Slag In-
dustries
Storage, Business Furniture, — Equipment, and
Filing Supply
Storage, Electric — and Wet Primary Battery
Storage, Motor Vehicle — and Parking Trade
Structural Clay Products
Sugar, Beet — labor provisions
Suit, Coat and
Denial (See Coat and Suit).
Supplement (Automobile Manufacturing):
No. 1 — Funeral Vehicle and Ambulance Sub-
division
Supply, Business Furniture, Storage Equipment,
and Filing
Supply, Funeral
Supplies, Industrial — And Machinery Distributors
Trade
Supplies, Builders — Trade
Suspender, Men's Garter, — and Belt Mfg
Synthetic, Rayon and — Yarn Producing
Tackle, Fishing
Tariff, procedure to be followed for — relief under
section 3 (e) of the N.I.R.A
Terra Cotta Manufacturing
Textile Bag
Textile, Cotton (See Cotton Textile)!
Textile Finishing, temporarily placed under Cotton
Textile Industry Code
Textile Machinery Manufacturing
Textile, Millinery and Dress Trimming Braid and.
Date, 1933
Oct.
Sept.
Nov. 10
Oct. 9
Nov. 14
Nov. 14
Nov. 27
Nov. 6
July 26
Oct. 10
Oct. 3
Nov. 8
July 22
Oct. 7
Nov. 10
Nov. 2
Nov. 17
Oct. 31
Oct. 9
July 27
Dec. 7
Aug. 19
Nov. 2
Oct. 23
Nov. 14
Nov. 4
Nov. 10
Nov. 4
Oct. 3
Dec. 7
Nov. 27
Oct. 27
Aug. 4
Nov. 8
Volume
Nov.
4
II
Nov.
4
II
Oct.
23
II
Oct.
3
I
Nov.
4
II
Aug.
26
I
Aug.
19
1
Oct.
23
II
Oct.
31
II
Sept.
18
I
July
9
1
Julv
21
I
Oct.
3
I
Oct.
31
II
I
I
II
I
III
III
III
II
I
I
I
II
I
I
II
II
III
II
I
I
III
I
II
II
III
II
II
II
I
III
III
II
I
II
672
INDEX— Continued
Industry
Textile, Silk ■
Textile, Wool
Theatrical, Legitimate Full Length Dramatic &
Musical
Throwing
Tile, Asphalt and Mastic
Tile, Floor and Wall Clay — Manufacturing
Timber, Lumber and — Products
Amendments No. 1 & 2 (See Lumber and
Timber Products).
Denial of application for exemption by Greens-
boro Lumber Company
Tool, Machine — and Equipment Distributing
Trade
Tool, Machine — and Forging Machinery
Tool, Special — , Die, & Machine Shop
Toy and Playthings
Trade, Retail — and Retail Drug .
Transit
Transport, Air
Trimming, Millinery and Dress — Braid and Tex-
tile
Tubular, Steel — and Firebox Boiler
Twine, Cordage and, temporarily placed under
Cotton Textile Industry Code
Modification of Ex. O. of July 27, 1933, placing
Cordage and Twine Industry temporarily
under Cotton Textile Industry Code
Umbrella Manufacturing
Underwear and Allied Products Manufacturing
Temporarily placed under Cotton Textile Indus-
try Code
Sta j^ extended
Upholstery and Draperj" Textile
Varnish, Paint — and Lacquer Manufacturing
Vehicle, Motor — Retailing Trade
Vehicle, Motor — Storage and Parking Trade
Vitrified Clay Sewer Pipe Manufacturing
Wall, Floor and, — Clay Tile Manufacturing
Wall Paper Manufacturing
Warm Air Furnace Manufacturing
Washing & Ironing Machine Manufacturing
Waste, Machined ^ — Manufacturing
Waterproofing, Dampproofing, Caulking Com-
pounds and Concrete Floor Treatments Manu-
facturing
Wheel, Buflf and Polishing
Wholesale Food and Grocery Trade, labor pro-
visions
Wire Covering, Knitting, Braiding and — Machine-
Women's Belt
Wood Plug
Wool Felt Manufacturing
Woolen, Leather and — Knit Glove _
Wool Textile
Yarn, Rayon and Synthetic — Producing
Date, 1033 I Volume
Oct. 7 I
July 26 i I
Aug. 16
Oct. 11
Dec. 7
Nov. 4
Aug. 19
Oct. 20
Nov. 27
Nov. 8
Nov. 17
Nov. 4
Oct. 21
Sept. 18
Nov. 14
Oct. 31
Oct. 23
July 27
Oct. 20
Oct. 9
Sept. 18
Julv 21
Oct. 20
Nov. 27
Oct. 31
Oct. 3
Dec. 7
Nov. 27
Nov. 4
Sept. 7
Nov. 27
Nov. 4
Dec. 7
Nov. 27
Nov. 4
Nov. 15
Oct. 3
Oct. 3
Nov. 14
Nov. 27
Nov. 4
Julv 26
Aug. 26
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