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

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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial 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. 

(134) 



135 

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 

(136) 



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. 

(138) 



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 

(140) 



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 

(142) 



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. 

(144) 



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 

(146) 



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. 

(148) 



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. 

(150) 



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. 

(152) 



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- 

(154) 



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 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 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 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 l